Perfume

A
Project Report
On
Submitted By
Pareen Bhesadadiya
T.Y.B.B.A. (B)
Roll No. 37
Guided By
Prof. Ajay Jayswal
Submitted To
Saurashtra University
Rajkot
Shri Patel Kelvani Mandal College of Technology
College Road, Junagadh.
Academic year
2016-2017

DECLARATION
I, the undersigned Pareen Bhesadadiya a student of T.Y. B.B.A.
hereby declare that the project work presented in this report is my own work
and has been carried out under the supervision and guidance of Professors
DATE:
PLACE: Junagadh
Signature
(Pareen Bhesadadiya)

PREFACE
B.B.A course is a special course which prepare young entrepreneur
& it’s very essential that they should have the basic knowledge about
how The Small-Scale-Business can be started
One of the subject namely entrepreneurship and management of
Small-Scale-Business has covered this aspect with a view to create and
develop entrepreneurial skill among project the student
So, I would like to prepare a Product Project Report on Perfumes
DATE:
PLACE: Junagadh
Signature
(Pareen Bhesadadiya)

ACKNOWLEDGEMENT
I feel great pleasure to present this report of “perfume”. It is really
a matter of great pleasure for me to present this creative and practical work.
At this stage project report is an important part of learning and every
entrepreneurship prepares it before starting of actual production.
I take this opportunity to express my sincere thanks to all those who
helped me in the preparation of this report. I am being very thankful to all
Professors for giving me guidance to prepare this project report.
Date:
Place:
Signature:
(pareen bhesadadiya)

Index
A. Introduction
B. Project at glance
C. Owner’s data
D. Industrial location & advantage
E. Product detail
F. Market analysis
G. Raw material
H. Manufacturing process
I. Production capacity
J. Financial details
K. Sources of financial
L. Profitability of project
M. Project summary
N. B.E.P statement
O. Risk Factors
P. Future plan
Q. Conclusion
R. Bibliography

A] =Introduction
Unemployment is increasing in our country. The large scale & small
scale industry. Which don’t provide a wide employment because intensive.
So, the small scale industries must be developing in us country because they
are providing more employment.
The SSI ensures more equitable distribution of the national income
and they facilitate an effective mobilization or resources of capital & skill.
Small industries are desirable because it is responsible for dispersal of
production unit to small towns & village.

B]=PROJECT AT GLANCE
Name of the Unit : shamrudhdhi Industries
Product : broom
Communication Address : GIDC, plot no -9161,
Junagadh, 362001
Location of the unit : GIDC, plot no -9161,
Junagadh, 362001
Form of Organization : Partnership Firm
Type of Industries : Manufacturing of broom
SSI Registration Number : Application for
Bankers : State Bank of India
Name of Promoters : Pareen Bhesadadiya
Mr. Patel
Size of Unit : Small Scale Unit

C]=owner’s Data
1. Name Pareen Bhesadadiya
Address A-102, swapna shrusti app.
Near Yamunavadi,
Junagadh,362001
Educational Qualification B.B.A. in marketing
Age 20 Years
Financial Contribution 50 %
Share Of Profit 50 %
2. Name Mr. Patel
Address 204, Indralok app,
Near sai temple,
junagadh-362001
Educational Qualification M.B.A. Marketing
Age 30 Years
Financial Contribution 50 %
Share of Profit 50 %

D]=Industrials Location &
Advantage
Location is the most important factor to be taken into consider for the
successful working of any organization.
Location of the unit must be near either to raw material or to any other
factors are available in near the organization. Thus the location Is a most
important factor of any location various factor of location for consideration
are as follow.
Transportation: It is easily available from the city area Junagadh
is a metro city so there is a good development of roadways &
transportation facilities. So it is helpful to bring raw material from Rajkot &
other cities of Gujarat
Labor: Supply of labor also influences the selection of location. As
industry working only in shift required No. of labor skilled as well as
unskilled are available in sufficient No. at the reasonable from Rajkot city.

Land: Land is a basic necessity for each & every industry without
land no industry can be come out into existence so land is easily available
at subsidized rates by Government of Gujarat.
Power, water & other facilities: Baroda is declared as
industrial zone by the government of Gujarat. So state government
provides power, water and other facilities like road, shed at cheaper rates.
Availability of market: Market plays an important role
in the selection of location. Market should be near to the industry so;
the immediate sale of product is possible. It also helps in reduction of
cost by reducing storing of finished goods, avoid the
transportation etc.

E] = Product details and
Its uses
❖ Traditional
The traditional classification which emerged around 1900 comprised the
following categories:
Single Floral: Fragrances that are dominated by a scent from one
particular flower; in French called a soliflore. (e.g. Serge lutes' Sa
Majesty La Rose, which is dominated by rose.)
Floral Bouquet: Is a combination of fragrance of several flowers in a
perfume compound.
Amber or "Oriental": A large fragrance class featuring the sweet slightly
animatic scents of ambergris or labdanum, often combined with
vanilla, tonka bean, flowers and woods. Can be enhanced by camphor
us oils and incense resins, which bring to mind era imagery of the
Middle East and Far East. Traditional examples

include Guerin’s Shalimar, Yves Saint Laurent's Opium and Chanel's
Coco Mademoiselle.
Woody: Fragrances that are dominated by woody scents, typically
of agarwood, sandalwood, cedar wood, and vetiver. Patchouli, with its
camphorates smell, is commonly found in these perfumes. A traditional
example here would be Mercuria’s Madera’s De Oriented or
Chanel Bios des Lies. A modern example would be Balenciaga Rumba.
❖ Modern
Since, due to great advances in the technology of perfume creation (i.e.,
compound design and synthesis) as well as the natural development of styles
and tastes, new categories have emerged to describe modern scents:
Bright Floral: combining the traditional Single Floral & Floral Bouquet
categories. A good example would be Estée Lauder's Beautiful.
Green: a lighter and more modern interpretation of the Chypre type,
with pronounced cut grass, crushed green leaf and cucumber-like
scents. Examples include Estée Lauder's Aliage, Sisley's Eau de
Campagna, and Calvin Klein's Eternity.

Aquatic, Oceanic, or Azonic: the newest category in perfume history,
first appearing in 1988 Davidoff Cool Water , Christian Dior's Dune ,
and many others. A clean smell reminiscent of the ocean, leading to
many of the modern androgynous perfumes. Generally, contains clone,
a synthetic scent discovered in , or other more recent synthetics. Also
used to accent floral, oriental, and woody fragrances.
Citrus: An old fragrance family that until recently consisted mainly of
"freshening" eau de colognes, due to the low tenacity of citrus scents.
Development of newer fragrance compounds has allowed for the
creation of primarily citrus fragrances. A good example here would be
Faberge Brut.
Fruity: featuring the aromas of fruits other than citrus, such as peach,
cassis (black currant), mango, passion fruit, and others. A modern
example here would be GinestetBotrytis.

G] =Raw material
Natural ingredients—flowers, grasses, spices, fruit, wood,
roots, resins, balsams, leaves, gums, and animal secretions—as well
as resources like alcohol, petrochemicals, coal, and coal tars are used
in the manufacture of perfumes. Some plants, such as lily of the
valley, do not produce oils naturally.
In fact, only about 2,000 of the 250,000 known flowering plant
species contain these essential oils. Therefore, synthetic chemicals
must be used to re-create the smells of non-oily substances.
Synthetics also create original scents not found in nature.
Some perfume ingredients are animal products. For example,
castor comes from beavers, musk from male deer,
and ambergris from the sperm whale. Animal substances are often
used as fixatives that enable perfume to evaporate slowly and emit
odors longer.
Other fixatives include coal tar, mosses, resins, or synthetic
chemicals. Alcohol and sometimes water are used to dilute
ingredients in perfumes. It is the ratio of alcohol to scent that
determines whether the perfume is "eau de toilette" (toilet water) or
cologne.

H] =Manufacturing process
Collection
1 Before the manufacturing process begins, the initial ingredients
must be brought to the manufacturing center. Plant substances are
harvested from around the world, often hand-picked for their
fragrance. Animal products are obtained by extracting the fatty
substances directly from the animal. Aromatic chemicals used in
synthetic perfumes are created in the laboratory by perfume
chemists.
Extraction
Oils are extracted from plant substances by several methods: steam
distillation, solvent extraction, effleurage, maceration, and expression.
• 2 In steam distillation, steam is passed through plant material held in a
still, whereby the essential oil turns to gas. This gas is then passed
through tubes, cooled, and liquefied. Oils can also be extracted by
boiling plant substances like flower petals in water instead of steaming
them.
• 3 Under solvent extraction, flowers are put into large rotating tanks or
drums and benzene or a petroleum ether is poured over the flowers,
extracting the essential oils. The flower parts dissolve in the solvents
and leave a waxy material that contains the oil, which is then placed in
ethyl alcohol. The oil dissolves in the alcohol and rises. Heat is used to
evaporate the alcohol, which once fully burned off, leaves a higher
concentration of the perfume oil on the bottom.

• 4 During effleurage, flowers are spread on glass sheets coated with
grease. The glass sheets are placed between wooden frames in tiers.
Then the flowers are removed by hand and changed until the grease
has absorbed their fragrance.
• 5 Maceration is similar to effleurage except that warmed fats are used
to soak up the flower smell. As in solvent extraction, the grease and
fats are dissolved in alcohol to obtain the essential oils.
• 6 Expression is the oldest and least complex method of extraction. By
this process, now used in obtaining citrus oils from the rind, the fruit
or plant is manually or mechanically pressed until all the oil is
squeezed out.

Blending
• 7 Once the perfume oils are collected, they are ready to be blended
together according to a formula determined by a master in the field,
known as a "nose." It may take as many as 800 different ingredients
and several years to develop the special formula for a scent.
After the scent has been created, it is mixed with alcohol. The amount
of alcohol in a scent can vary greatly. Most full perfumes are made of
about 10-20% perfume oils dissolved in alcohol and a trace of water.
Colognes contain approximately 3-5% oil diluted in 80-90% alcohol,
with water making up about 10%. Toilet water has the least amount—
2% oil in 60-80% alcohol and 20% water.
Aging
• 8 Fine perfume is often aged for several months or even years after it
is blended. Following this, a "nose" will once again test the perfume to
ensure that the correct scent has been achieved. Each essential oil and
perfume has three notes: "Notes de tote," or top notes, "notes de
Coeur," central or heart notes, and "notes de fond," base notes. Top
notes have tangy or citrus-like smells; central notes (aromatic flowers
like rose and jasmine) provide body, and base notes (woody
fragrances) provide an enduring fragrance. More "notes," of various
smells, may be further blended.

I] =Production capacity
Year. Installed
Capacity
Utilized
Capacity
Uts.
Produced
Rate per
Bottle
1st
100%
350000
70% 245000 60
2nd
100%
350000
80% 280000 60
3rd
100%
350000
85% 297500 60

J] =Financial details
1) Details of land and building
No. Particulars Area Rate Total
1. Land 2300 sq mts 650 14,95,000
2. Building 7500 sq fts 300 22,50,000
TOTAL 37,45,000
2) Details of Plants and Machinery
No. Particulars Qty. Amount
1. Cutter 1 1,80,000
2. Packing 1 1,00,000
3. Water Extractor 1 3,00,000
TOTAL 5,80,000
Preliminary and Pre operative expense Rs. 1, 50,000

3) Total Cost of Project
COST OF ASSET
Sr.no Particulars Total Amount
01 Land 14,95,000
02 Building 22,50,000
03 Machineries 5,80,000
04 Other fixed assets
(furniture)
7,50,000
Total Cost of fixed assets 50,75,000
WORKING CAPITAL COST OF PROJEC
01 Value of Raw Material 5,40,000
02 Wages & Salary 45,000
03 Electricity bills 10,000
04 Overhead Expenses 5,000
Total working capital
{1}months
50,000
Total working capital
{ 12 }month
6,00,000

TOTAL COST OF A PROJECT
01 Fixed Assets 50,75,000
02 Working Capital 6,00,000
Total cost of project 56,75,000
4) Total fixed Assets
No. Particulars Qty. Amount(Rs.)
1. Delivery Van 1 4,00,000
2. Furniture 5 1,00,000
3. Electric Fitting 2 2,00,000
4. Computer 2 50,000
5. Land and Building 3 37,45,000
3. Plant and Machinery 3 5,80,000
5. Preliminary and Pre-
operative Exps.
1 1,50,000
TOTAL 52,75,000

K]=Sources of financial
Financial Arrangement
A.Sources of Finance
Sr.no Particulars Own Partner=1 Partner=2 Total
Amount
01 Land 14,95,000 7,47,500 7,47,500 14,95,000
02 Building 22,50,000 11,25,000 11,25,000 22,50,000
03 Machineries 5,80,000 2,90,000 2,90,000 5,80,000
04 Furniture 1,00,000 50,000 50,000 1,00,000
05 Working
Capital
6,00,000 3,00,000 3,00,000 6,00,000
TOTAL 50,25,000 25,12,500 25,12,500 50,25,000
B.MEANS OF FINANCE
01 Owned Contribution 50,25,000
Total Cost of Project 50,25,000

L] =Profitability of project
A-Utilities
No. Particulars Qty. Rate Monthly Annually
1. Electricity 3000KWH 10 30,000 3,60,000
2. Water 15,000 1,80,000
3. Fuel 9,000 1,08,000
TOTAL 54,000 6,48,000
B-Man Power Requirements
TOP LEVEL
No. Designation No. Of
Employees
Monthly
Salary
Yearly
Salary
1. Manager 1 10,000 1,20,000
2. Accountant 1 10,000 1,20,000
TOTAL 20,000 2,40,000
MIDDLE LEVEL
Employees
Monthly
Salary
Yearly
Salary
1. Clerk 1 5,000 60,000
2. Supervisor 2 6,000 1,44,000
TOTAL 11,000 2,04,000

C-Administrative Expenses
D-Depreciation
LOWER LEVEL
Employees
Monthly
Salary
Yearly
Salary
1. Skilled 4 8,000 3,84,000
2. Unskilled 5 7,000 4,20,000
TOTAL 15,000 8,06,000
LEVELS OF MANAGEMENT
No. Particulars
Monthly
Salary
Yearly Salary
1. Top Level 20,000 2,40,000
2. Middle Level 11,000 2,04,000
3. Lower Level 15,000 8,06,000
TOTAL SALARY 46,000 12,50,000
No. Particulars Value Rate 1st
Year 2nd
Year 3rd
Year
1. Building &
land
37,45,000 10 % 3,74,500 3,37,050 3,03,345
2. Plant &
Machinery
5,80,000 25 % 1,45,000 1,08,750 81,563
3. Computer 1,00,000 40 % 40,000 24,000 14,400
4. Furniture 1,00,000 15 % 15,000 12,750 10,838
5. Vehicle 4,00,000 15 % 60,000 51,000 43,350
TOTAL 6,34,500 5,33,550 4,53,496

E-Interest
No. Particulars Percentage Partner-1 Partner-2 Total
Amount
1. Owned 8 % 1,78,600 1,78,600 3,57,200
TOTAL 1,78,600 1,78,600 3,57,200
F-Sales Forecast
Year Utilized
Capacity
Production Sales Selling
Price
Amount
1st 70 % 2,45,000 2,45,000 60 1,47,00,000
2nd 80 % 2,80,000 2,80,000 60 1,68,00,000
3rd 85 % 2,97,500 2,97,500 65 1,93,37,500
4th 90 % 3,15,000 3,15,000 65 2,04,75,000
5th 95 % 3,32,500 3,32,500 70 2,32,75,000
G-Other Contingent Expenses
No. Particulars Amount Per
Month
Amount Per
Year
1. Repairs & Maintenance 6,000 72,000
2. Legal Expenses 4,000 48,000
3. Miscellaneous Expenses 4,000 48,000
4. Printing Expense 8,000 96,000
5. Telephone Expense 2,500 30,000
6. Advertisement & Selling
Expenses
6,000 72,000
7. Postage & Stationary 750 9,000
TOTAL 31,250 3,75,000

H-Annual Cost of Production
No. Particulars Amount
1. Raw Materials 1,15,14,000
2. Wages & Salary 12,50,000
3. Other Expenses 3,75,000
4. Utilities 6,48,00
5. Depreciation 6,34,500
6. Interest On Capital (Owned) 3,57,200
TOTAL 1,47,78,700

P] =B.E.P Statement
1. Cost Per Unit
1. Fixed Cost: -
1. Staff & Labour 60% 7,50,000
2. Other Contingent Expenses (60%) 2,25,000
3. Depreciation 6,34,500
4. Interest on Capital 3,57,200
5. Preliminary Expenses W/O 50,000
TOTAL 20,16,700
FCPU = Total Fixed Cost
Uts. Sold
= 20,16,700
2,45,000 = Rs. 8.23
2. Variable Cost:-
1. Raw Materials 1,15,14,000
2. Other Contingent Expenses (40%) 1,50,000
3. Utilities 6,48,000
4. Staff & Labour (40%) 4,71,200
Preliminary Expenses 1,00,000
TOTAL 1,29,12,000
VCPU = Total Variable Cost
Uts. Sold
= 1,29,12,000
2,45,000 =Rs. 52.70

2.Break Even Analyses
Particular Amount(units) Amount (Rs.)
sales 60 1,47,00,000
(less)variable cost 52.70 1,25,05,200
contribution 7.3 21,94,800
(less)Fixed cost 8.23 11,34,800
profit 10,60,000
PV Ratio = Contribution * 100
Sales
= 21,94,800 * 100
1,47,00,000 = 14.93 %
1. BEP (in Uts.) = Fixed Cost
Contribution per unit
= 11, 34,800
7.3 = 1,55,452 Uts.

2. BEP (in Rs.) = Fixed Cost * 100
PV Ratio
= 11,34,800 * 100 = 76,00,804 Rs.
14.93
3. BEP (in %) = Fixed Cost * utilized capacity
Contribution
= 11,34,800 * 70
21,94,800 = 36.19 %

3. Profitability
Particulars Amount
Sales 1,47,00,000
Less:-
Cost Of Production
1,35,40,000
EBIT 11,60,000
Less:-
Interest on Bank Loan
0
EBT 11,60,000
Less:-
Tax @ 35%
4,06,000
NET PROFIT 7,54,000

4. Ratio Analyses
A. Rate Of Investment :-
ROI = EBIT * 100
Project Fund
= 11,60,000 * 100
67,30,000
= 17.24 %
B.Net Profit Ratio :-
NPR = Net Profit * 100
Sales
= 7,54,000 *100
1,47,00,000
= 5.13 %

C.Gross Profit Ratio :-
GPR = Gross Profit * 100
Sales
= 2,35,200 *100
1,47,00,000
= 1.6 %
D.Fixed Assets Turnover Ratio :-
FATR = Fixed Assets * 100
Sales
= 52,75,000 *100
1,47,00,000
= 35.88 %

Q] =Risk Factors
Every new business needs to determine its risk factors that the
business will face. It risk factors are carefully determined then the
entrepreneur can take better measures to see that they have limited effect on
the business following are some of the risks that the new business will face:-
1. The risk of failure of Project.
2. Initially Production would be low but Cost of Production
may be higher.
3. Initially required amount of sales would not be achievable
and will result in loss.
4. The business would take a longer period to reach break even
Point.
5. Negative attitude of customers.

R] = Conclusion
India is a developing country. There is very much importance of
occasion in India. now a day’s people do not want to waste time & energy for
washing dish, so the product like paper dish are used in large number of
quantity to parties, sweet shops, picnic, marriage etc. these product save time,
energy and money of the people so it is very popular in the social life.
We are expecting much better market for paper dishes because in this
fast moving world people not have much time and the disposable product may
get better future market.

S] = Discloser
Of Accounting Policy
✓ Depreciation is calculated on straight line methods.
✓ Salary is given within 1st week of every month.
✓ Raw material is purchased once in two months.
✓ Stock is calculated at cost or market price whichever is low.
✓ Interest on ownership capital is used for costing purpose and is
reinvested in business again every year.

T] = FUTURE PLAN
✓ To use totally eco-friendly broom, which are made out of plastic and
not grass.
✓ To make the product popular in every place of India and gradually cover
all nearby country.
✓ To make the firm a medium scale industry and then a large scale.
✓ If possible I would export my product, as they are highly in demand in
foreign countries.

U] = CONCLUSION
In the product project report on Broom. I have discussed all financial
data and other relevant information
The market of Broom is expanding; demand for the product is
increasing day by day. The return on this business is also satisfactory.
At last it can be said that future of this product is very bright.
With the expectation of high profitability, it is assumed that it would be
the perfect product to be manufactured in today’s environment. AFTER ALL
IT’S AN ENVIRONMENTAL FRIENDLY PRODUCT!!! It’s
Broom

V] = BIBLIOGRAPHY
➢ Books: -
Modern business & Mgt. =Himalaya Publishing House
Marketing Mgt. =Tapan K. panda
Financial Mgt.= Khan & Jain

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