The document provides details of the proposed cotton seed cake business of Shree Krishna Industry. It summarizes that the total capital required is Rs. 1,17,75,000/- which will be sourced through a loan of Rs. 40,00,000/- and own capital contribution of Rs. 36,00,000/- and Rs. 24,00,000/- from partners Kachhadiya Rajan J. and Ranpariya Rohit respectively. The key machinery required are two expellers and a boiler at a total cost of Rs. 41,30,000/-. The production process involves extracting cotton seed oil and cake from cotton seeds. The target market is farmers and distribution will be both direct

2. Declaration
I undersign kachhadiya Rajan J. The student of M.B.A.
here NR vekaria institute of b.m.s.junagadh. Here by declare that the
Business plan presented in this report is my own work and has been
carried out under the supervision for dr.rajesh patel of NR.vekaria
institute of b.m.s bilkha road junagadh.
This work has not been previously submitted for any
examination to any other university.
Date :-
Student’s Sign
(kachhadiya Rajan J.)
Place :-

3. PREFACE
Small scale industry is a tool for socio-economic growth and
balanced structural development. It is considered highly important for
creating employment opportunity and to develop entrepreneur skills. It
also ensures latter use of scare financial resources and opportunity
technology.
The contribution of small scale industries is 40% in the
economic growth rate of the country. So, it is essential to understand
management and working of small scale industries as a student of
management. Small scale business has been included to create and
development entrepreneur skill among the student.
It is highly essential as a student of management to understand
management of SSI in MBA The subject entrepreneurship and
management of small business are included to give student the
practical knowledge of the student.
Thus we can get clear picture that how to manage small scale
business and how to avoid difficulties in the way. So, I am presenting
Business plan on “cotton seed industry”.

4. Acknowledgement
I am feeling great pleasure in submitting this project report to you.
Business Plan is crucial function, which must be done by every small
scale entrepreneur before he or she starts production.
I greatly pay my attitude to my supervisor Dr. Rajesh Patel for his
guideline encouragement.
I would like to thank my friends and my family members who
helped me in this project.
Date :-
Student’s Sign
(Kachhadiya Rajan J.)
Place :-Junagadh

5. Index
Sr.No. Particulars Page
No.
1. Introduction
2. Project at a Glance
3. Bio-data of Promoter
4. Basis and Presumption
5. Organization structure
6. Implementation schedule
7. Location Justification
8. Introduction of Product
9. Market details of Product
10. Details of Raw – Material
11. Details of Machinery & Equipments
12. Production Process
13. Details of Marketing
14. Financial Details
15. Profitability of Project
16. Ratio Analysis
17. Break Even Point Analysis
18. Risk Factors
19. Future Plan
20. Conclusion

6. 1 Introduction of small small scale industry
Cottage & Small scale industries facilities in effective
mobilization of resources of capital and skills proper management of
small scale industries leads to maximum utilization of scattered
resources and developing entrepreneur skills
Small scale industry in India provides employment to above 4.4
million people and the large contribute to develop Indian economy.
The government of India is well aware about importance of small scale
industry.all India small scale boards give technical financial and other
guidance to small scale industrialist.
I have got a chance to acquire practical knowledge at the time of
collecting information. I have tried to cover all the relevant points and
have tried to give in the most precise and systematic form.

7. 2 Projects at Glance
1. Name of the Unit :- Shree Krishna industry
2. Address of Unit :- road B/5
Plot no. E-10/B
G.I.D.C
Metoda
3. Form of Organization :- Partnership firm
4. Name of the Product :- “Cotton seed cake”
5. SSI Registration :- Applied for
6. Bankers :- HDFC Bank
ICICI Bank
7. No. of Proposed Employees:- 12
8. Cost of Project :- 1,17,75,000
9. Brand Name :- “Anmol cotton seed cake”
10. Accounting Year :- 1st April to 31st March

8. 3 Bio-Data of Partners
Partner:-1
1) Name :- Kachhadiya Rajan J.
Address :- kuldevi krupa
B-5 sahi strit
Kalavad Road,
TA- Rajkot
DR- Rajkot
Rajkot
Age :- 22
Education Qualification : - M.B.A. (Finance)
Financial Contribution :- 60%
Share In Profit :- 60%
Working Responsibility : - In Production & Marketing
Department

9. Partner:-2
Name :- Ranpariya Rohit
Address :- “Shree Krishna”
9-Patidar Society
University Road,
Street No.1,
Rajkot.
Age :- 26
Education Qualification : - M.B.A. (Finance.)
Experience :- 3 Years in Company
Financial Contribution :- 40%
Share In Profit :- 40%
Working Responsibility : - In Finance & Personal
Department

10. 4 Basis & Presumption
The profile is drawn on the basis of the following presumption.
Working hours per day 20 Hrs
Working day 300 Days
Total no. of working hours 6000 Hrs
Working efficiency 80%
Labors charges As per wage act
Rate of interest on fixed and working capital 16%
Operative period of the project 12 years
Value of machinery and equipments is estimated on the basis of
prevailing cost of market.

11. 5. Orgenation structure
Partner
General Marketing Sales
Manager Manager Manager
Labour Clark
Aria
Manager

12. 6 Implementation Schedule
Project implementation will take a period of 10 months from the date
of approved of the scheme breakup of activities with relative time for
each activity is shown below.
Preparation of project report 1 month
Registration of SSI 1 week
Financial arrangement 1 month
Purchase of raw-material 15 month
Installment of machinery 1 month
Electrification 1 week
Recruitment of staff 15 days
I can start my business with maximum time period of 8 to 12 month.

13. 7 Location Justification
It is very essential that selection of location should be proper because
which directly concern with the success and failure of any company. If
location is proper then, it helps to reduce cost of all infrastructural
facilities like water, power, fuel, row-material, transportation etc. Must
give full consideration to suitable location of his enterprise because
location factors are crucial for profit maximization.
The plant is located at ‘G.I.D.C.’. This area is considered as an
industrial zone and various infrastructural facilities like transportation
facility, power, fuel, water etc. are available easily and national
highway it’s just near by this area.
Here, some factors are given.
1) Raw-Material :~
Raw martial is prime factoring that affect location
of industry. The factory is located near the row
material producing center. Nearness to the source of
raw-material reduces the cost of transportation.

14. 2) Power & Water Facilities: ~
Power is necessary for the process of production
and for transporting finished goods and raw-
material, power may be electrical, diesel and atomic
energy are localized and mobile water is also
available there.
3) Labour :~
Labour are the main element of production, if the
labours are efficient then production would be of
better quality and quantity. As plant is totally
industrial estate this is the main reason , firm will
get the best skilled labours. Machine can’t produce
anything without the availability of skilled labour
4) Market:-
Market is also important factor that affect the
location of industry because if the final product is
marketed as early as possible. So problem of working
capital is lower.

15. 8 Introduction of product
My product is cattle food. Means food for animal. This product
is particularly known as cotton seed cake. This is my main product.
The main raw material of my product is cotton seeds. And during
the production process I also get raw cotton seed oil.
So my products are:-
Main product: - cotton seed cake
Subordinate product: - cotton seed oil (raw)

16. 9 Market Details for the Product
The product is mainly for the animal. We know that in Indian
village, there are so many tamed animals. So the requirement of
cattle food is very high. And the demand of cattle food is evergreen.
My subsidiary product is cotton seeds oil. So the demand of both
my product is high. So I can get market easily.
Target market for my product is the village, where tamed
animal are so many. My product is also healthy for the animal, so
the demand of this product is high.

17. 10 Details of Raw-Material
Raw-material is a prime for the production of the product,
and it is nothing but input which through some processing we can
get finally output.raw material means, which thing you use for final
production.
For the production cotton seeds cake mainly cotton seeds use
as raw-materials.
* Supplier Of Raw-Materials: ~
1). Raj jinnig,
8/G Plot,
Ajar Industrial Estate,
Rajkot.
2). Krishna jinnig Pvt.Ltd.
10/2C, Kalavad Road,
Metoda,

18. 11 Details of Machine & Equipments
In the production of cotton seeds cake mainly following
machines are required.
Sr.No. Name of the Quantity Price Total
Machine
1 X-piller 2 15,00,000 30,00,000
2 Nutilisur 1 60,000 1,20,000
3 Boiler 1 5,00,000 5,00,000
4 Elevator 2 2,00,000 4,00,000
5 Cistern 2 1,50,000 1,60,000
6 Electric motor 2 5,000 10,000
Total Amount 41,30,000

19. 12 Production Process
Production Process refers to the whole process from raw-
materials to semi finished and then final production.
The production process of my industries for produce cattle food
cake are as under.
The first cotton seeds reach at railing through conver then this
cotton seeds reachat X-piller machine and detached cotton seeds oil
and cotton seed cake the cotton seed oil go at cisten and cotton seeds
cake go for pakageging now final; product is ready.

20. 13 Details Of Marketing
Marketing means the buying and selling activity of products. In
short you can say that, how you sell your final products to the
consumer. Marketing is most important because, if you can produce
your final products but you can’t sell it then your production is
nothing.
* Elements of Marketing: ~
1) Channel of Distribution:-
Channel of distribution means the by which way
you sell your final product.
Our industry adopts two types of channel of distribution.
{A} Direct to the customer
{B} Whole seller to the customer.
2) Advertisement:-
It is the most important for today’s competitive business
for the success of the business the advertisement is crucial decision for
us, and through it you can spread awareness of your product in the
market.

21. Our industry gives advertisement by,
{A} News Paper
{B} Holdings
{C} Pamphlets distribute in villages.
3) Target Market :-
It is not possible for any businessman to satisfy
all type of human needs and wants by single business. So the
business targets some specific group of people for the particular
product known as target market.
Our industries target market is ‘Farmer’.
4) Pricing Decision :-
Decision concerning price to be followed for a
period fame may be called price policies. Pricing decision has
strategic important in any enterprise. Good pricing policy is always
desired by all organization. Mostly we measure price is the
exchange value of a product or services always express in money.
There are many methods for taking pricing decision.
So our industry decide price on the basis of ‘Going Rate Pricing’. In
this method charging the same price as compare to competitor’s
price.
PRICE 50 kg = 640rs.

22. 14 Financial Details
[A] Fixed Cost: ~
1) Machinery & Equipments :-
Sr.No. Name of the Quantity Price Total
Machine
1 X-piller 2 15,00,000 30,00,000
2 Nutilisur 1 60,000 1,20,000
3 Boiler 1 5,00,000 5,00,000
4 Elevator 2 2,00,000 4,00,000
5 Cistern 2 1,50,000 1,60,000
6 Electric motor 2 5,000 10,000
Total Amount 41,30,000
2) Total Fixed Capital :-
Sr.No. Particulars Amount
1 Land & Building 50,00,000
2 Machinery 41,30,000
3 Pre-Operative Expensive 8,00,000
4 Other Expenses 70,000
Total Amount 1,00,00,000
[B] Working Capital: ~
(1) Raw material
Sr.No. Particulars Quantity per Rate per Total
tones tone
1 Cotton seeds 50 10,000 5,00,000
Total Amount 5,00,000

23. 2) Salary of Staff Members :-
Sr.No. Particulars No. Salary Total
1 Unit Manager 1 10,000 10,000
2 Accountant 1 7,000 7,000
3 Peon 1 1,000 1,000
4 Machine Operator 1 2,000 2,000
5 Skilled Worker 3 2,000 6,000
6 Packer 1 1,500 1,500
7 Chokidar 1 1,000 1,000
8 Super wiser 1 7,000 7,000
9 Sales man 2 2,000 4,000
Total Amount 39,500
3) Utility :-
Sr.No. Particulars Amount
1 Power 25,000
2 Water Supply 2,000
Total Amount 27,000
4) Other Contingent Expenses :-
Sr.No. Particulars Amount
Postage & Stationary 1,000
Telephone Charges 1,500
Repairs & Maintenance 2,000
Transportation Charges 15,000
Insurance Charges 2,500
Advertisement Charges 2,000
Sales Expenses 1,000
Total Amount 25,000

24. 5) Total Working Capital :-
Sr.No. Particulars W.C. per W.C. per 3 W.C. per
Month Months year
1 Raw-material 5,00,000 15,00,000 60,00,000
2 Salary 39,500 1,18,500 4,74,000
3 Utility 27,000 81,000 3,24,000
4 Other 25,000 75,000 3,00,000
Total Amount 5,91,500 17,75,000 70,98,000
[C] Total Capital Investment: ~
Sr.No. Particulars Amount
Total Fixed Capital 1,00,00,000
Total Working Capital 17,75,000
Total Amount 1,17,75,000
[D] Sources of Finance: ~
Sr.No. Particulars Total Loan Own Capital
Amount Nilesh Rohit
Total Fixed 1,00,00,000 40,00,00 36,00,00 24,00,000
Capital 0 0
Total Working 17,75,000 5,00,000 7,75,000 5,00,000
Capital
Total Amount 1,70,98,000 60,98,00 66,00,00 44,00,000
0 0

25. [E] Calculation OF Depreciation: ~
Sr.No. Particulars Amount Rate of Amount
of Fixed Depreciatio
Assets n
Building & Land 49,50,000 5% 2,47,500
Machinery & 15,00,000 10% 1,50,000
Equipments
Total Amount 3,97,500

26. 15 Profitability of The Project
Particulars Amount
Total Sales 1,50,00,000
Less : Variable Cost 20,00,000
Contributio 1,30,00,000
n 
Less :Fixed Cost 75,00,000
Profit Before 5,50,00,000
Tax 
Less : Tax @ 35% 19,25,000
Total Net 35,75,000
Amount

27. 16 Calculation Of Ratio
1) Gross Profit Ratio:
= Gross Profit
Sales 100
= 1,80,000
2,00,00,000 100
= 90 %
2) Rate On Return On Investment :
= Net profit
Total capital 100
= 48, 00,000
1, 70, 98,000 100
= 28.07 %
3) Net Profit Ratio :
= Net profit
Sales 100
= 48, 00,000
2,00, 00,000 100
= 24 %

28. 17 B.E.P. Analysis
Break even point is the abbreviation used for B.E.P. this is the point
of ‘No profit No loss’ situation. It is the ideal situation for the firm if
the firm exceeds its sales beyond B.E.P. firm enjoys the profit and if
scale below the B.E.P. point, it will suffer losses B.E.P. may be found
using the following formula.
= Fixed Cost
Fixed Cost + Profit 100
= 1,00, 00,000
1,00,00,000+ 48,00,000 100
= 67.57 %

29. 18 Risk Factors
1) Changes in government polices may affect the profitability of
the firm, for e.g. Government gives subsidies to the farmer etc.
2) The intensity of competition may increase which may not be
favorable for this business.
3) My industry depends on agricultural product, and agricultural
product depends on rain, rain is mot certain, indirectly demand
of my product is not certain.
4) Price of my product is not fixed of all time, so demand is also
uncertain.

30. 19 Future Plan
In today’s market full with competition, in today business, if there
is no change in product, we will not survive in the market for long
time. So my future plane is innovate new type of food for animal, the
main thing of my dreams food is that food will be cheap in cost and
give more power to animal.
Now at he initial time my industries is not able to produce bulk
production so in future I will be introduce new machinery and starting
bulk production.

31. 20 Conclusions
In today’s era the animal’s milk is important and the demand of
milk is also high, for getting milk from animal we should give some
healthy food to animal so the scope of animal food is high, so demand
of my product is also high.
It includes future expansion and development of the project,
according to proposal project as considered project as considered to
have better prospects.