A total Analysis of New Mineral water Project. A detail study of the project is provided to make your research work more helpful. Thank You!!!

2. Project Analysis of
Sushant koirala Bebina Aryal
Sandhya khatiwada Prakrati mathama
Bhupendra timilsina Ashma subedi
Ekta basnet Raisha shrestha

3. Why is there a growing need
for bottled water?
 Lack of role of government in providing
good quality drinking water
 Lack of pure safe water
 Urbanization
 Increasing water pollution
 Growing number of cases of water borne
diseases

4. PRODUCT INTRODUCTION
Product: Mineral Water
Name: Elite Mineral Water
Manufacturer: Yeti Group Of Companies
Price: RS. 20 + 5
Slogan: Yours Satisfaction
Plant Katahari, Morang, Nepal

5. Segment For all people seeking hygienic water
Target
Group
All age group lower, middle and upper
class people

6. Plant Capacity & Production
Programme
Plant Capacity : 2160,000 Lt
Production Days: 300 days Per Annum
Production shift: One Shift

7. Production Program
S
N
Production Year 1 Year 3 Year 4
1 In 0.5 lt. bottle 648,000 972,000 1296,000
2 In 1 lt. bottle 972,000 972,000 864,000
3 Total 1620,000 1944,000 2160,000
4 Utilization of
rated capacity %
75% 90% 100%

8. Materials & Inputs
Raw Materials
Raw water from bore
Auxiliary Materials
Polyethylene terephtalate (PET) bottle
Pilfer Proof Caps , labels
Polypropylene Rolls

9. Annual requirement of auxiliary materials
SN Raw Materials Annual req. Cost(RS)
1 1.25 gm pet per form for 1 lt
bottle
972,000 4860,000
2 0.75 gm pet per form for 0.5 lt
bottle
648,000 2916,000
3 Polypropylene for wrapping of
PET bottle
5000 25000
4 Label 1620,000 486,000
Total 8287,000

10. Annual Utilities requirement
S.N Units Annual
Requirement
Cost(RS)
1 Electric
power
KWH 240,000
2 Lubricant kg 48,000
3 Fuel Gas LT. 95040

11. PRODUCT PROCESS
 Filtration Process
 Bottling Process

12. Purification Process
CHLORINISATION
SAND FILTRATION
CARBON FILTER
ULTRA FILTRATION
REVERSE OSMOSIS

13. Purification Process
OZONISATION
ULTRA FILTRATION

15. Equipment

16. Bottling Process

17. Bottling Process

20. Sources Of Technology
Company Name
CMEC INTERNATIONAL TRADING
CO.,LTD
Address 178,GUANG AN MEN WAI
STREET,XUANWU
DISTRICT,BEIJING,CHINA
Postal Code 100055
Website www.chinamachine.net

21. Sources Of Raw Materials
Company Name
MM Plastic Udyog (P) Ltd
Address
Malaya Road, Biratnagar, Nepal
Telephone : 527186, 530295
Fax : 977-21-530392
Website
http://www.mmgrp.org

22. Layout

23. Engineering
MACHINE & EQUIPMENTS
SN Description Qty Amount (RS)
1 Tank 1 2500
2 Tank (steel) 2 6000
3 RO 1 600,000
4 Filter 1 5000
5 Ozone mixer 4800
6 Motor (High Pressure) 2 8000
7 PVC pipes - 20,000
8 Chiller 1 100,000
Total 746,300

24. MACHINE & EQUIPMENTS
S
N
Description QTY Amount
(RS)
1 Rinsing, filler &
packing
160,000
2 Air compressor 1 8000
3 Batch coding with
inject printer
1 300,000
4 Shrink wrapping
Machine
1 300,000
Total 768,000

25. Land Building & Civil Work
Total land Area 1 bigga
Cost for Lease Rs 20,000
Building
Cost of building & construction
Rs 400,000

27. Manpower
S.N. Description Person
s
Monthly
(RS)
Annuall
y(RS)
1 Plant
Manager
1 15,000 180,000
2 Driver 1 12,000 144,000
3 Ass. Driver 1 10,000 120,000
4 Operating
worker
7 5000*7 420,000
Total 960,000

28. Financial Analysis
Source of finance:
30% Equity
70% Loan

29. Total initial Investment Cost
S
N
Costs items Total ( in
‘000’)
1 Land & Lease 20
2 Building & Civil Work 400
3 Plan machinery & equipment 1514.3
4 Office Furniture & Equipment 50
5 Vehicles 500
6 Working Capital 50
Total investment Cost 2714.3

30. Operation Cost
Labor cost 960,000
Electricity cost 240,000
Maintenance cost 60,000
Transportation cost 100,000
Total operation cost
960000+240000+60000+100000
=1360,000

31. Financial Evaluation
Total Cost = Bank EMI + Operation Cost
=200,000 + 1360,000
=1560,000
Monthly sale : 500*30
Monthly revenue :15000*15
Annual revenue: 15000*15*12
=2700,000

32. Financial Evaluation
Total Profit : 2700,000 - 1560,000
=1140,000
Pay back period : 3 years

33. Marketing Mix

34. Product
Available sizes
1 liter
0.5 liter

35. Product Design

36. Production Cost per 1liter
SN Description Cost (RS)
1 Cost of bottle + Cap 8.00
2 Shrink label 0.45
3 Shrink Cap 0.11
4 R.O. water 0.80
5 Misc. Cost 0.25
6 Packing cost 1.00
7 Interest on capital 1.00
8 Operating Cost 0.50
Selling cost 15

37. Label

38. STP
Segment For all people seeking hygienic water
Target
Group
All age group lower, middle and upper
class people
Positioning Your satisfaction

39. Pricing
0.5 liter 1 liter

40. Standard Pricing
Weight Retailer price Tax @ 13% Per unit
price
No of units Total price
1liter 13.27 1.73 15 12 180

41. For Wholesaler
Boxes purchased in a
single order
%discount
Up to 200 0.5 5%
200-500 1 liter 4%
500-1000 1 liter 8%

42. Producer Middleman Consumer
Distribution
DISTRIBUTOR
Retailer

43.  Promotions in social media. Since internet penetration is increasing
 word of mouth acts as a major influencing force for purchasing . Encourage dealers
to give positive comments on our product.
 Sponsoring teams in less expensive sports leagues
 Increase visibility through adds
Promotion
 After gaining sufficient volume in higher end of consumers, we can tap others by
promoting our products using celebrities. This creates a sense of eliteness for using
the product.
 Provide exclusive shelf to premium shops/ big chain of retails like Nepal Bazar,
Gorkha Department store to place Elite products to attract customer attention.
Phase – 1
Incubation
Phase – 2
Expansion
Phase – 3
Diversify/
Gain
volume
 For tapping 90% of the market share we can promote our regular mineral water in
social media/ Television programs explaining the minimal chemicals used for
purification as a distinguishing factor.

44. Strategic Management
 SWOT Analysis
 PORTER Model

45. SWOT Analysis
Strength
 Providing high quality Mineral Water
 Price per quality is very attractive
 Go through daily analysis for quality
control

46. Weakness
 Weak financial position
 New Brand in the Market

47. Opportunity
 Differentiated Packaging & variants
 Unique Offering

48. Threats
 Strong distribution channel of competitor
 Strong Positioning of competitor

49. Supplier
Power
Threat of
substitute
Barrier to entry Buyer Power
Degree of
Rivalry
Porter’s 5 forces Model

50. Conclusion

51. Any Questions?