Skip to main content
UploadLanguage (EN)Support
BusinessMobileSocial MediaMarketingTechnologyArt & PhotosCareerDesignEducationPresentations & Public SpeakingGovernment & NonprofitHealthcareInternetLawLeadership & ManagementAutomotiveEngineeringSoftwareRecruiting & HRRetailSalesServicesScienceSmall Business & EntrepreneurshipFoodEnvironmentEconomy & FinanceData & AnalyticsInvestor RelationsSportsSpiritualNews & PoliticsTravelSelf ImprovementReal EstateEntertainment & HumorHealth & MedicineDevices & HardwareLifestyle
AM
Uploaded byAjit Majumder
PPTX, PDF760 views

Project preparation

This presentation summarizes a proposed Rs. 48 lakh project to establish a chicken processing facility. The project would process 7,000 chickens per day at full capacity. Key details include an implementation schedule of 12 months, production capacity of 10,000 chickens per day, and 25 employees. Financial analysis estimates annual recurring costs of Rs. 81.48 lakh but also annual sales of Rs. 146.28 lakh, yielding a net profit of Rs. 52.63 lakh and a break-even point of 34,000 chickens (approximately 5 cycles to break even). The presentation concludes the project is feasible and could achieve break-even within the first year.

Business◦
Download to read offline
Presentation on Project Preparation Project cost Rs. 48lakh Presented By AjitMajumder ABMFT 1601 DEPTT OF ABMFT
Product and Applications • Shapes of Chicken • By products • Processed Varieties Market Potential Market Potential is very good as the consumption is increasing day by day.
Basis and Presumption a. The unit will work for 365 days per annum on single basis. b. The unit can achieve its full capacity utilization during the 4th year of operation. c. Wages for skilled workers are taken as per prevailing rates in this type of industry. d. Interest rate for total capital investment is calculated @12 per cent annum. e. The entrepreneur is expected to raise 10 per cent of the capital as margin money. f. Processing unit is expected to set up partnership.
Implementation Schedule Project implementation will take a period of 12 months. Break- up of the activities and relative time for each activity is each activity is shown below: Scheme preparation and approval 01month Provisional registration 02 months Sanction of financial supports etc 04-06 months Installation of machinery and power connection 10-12 months Trial run and production 02 months
Technical Aspects 1. Location 2. Process Technology 3. Local Authority 4. Energy Conservation
Production Capacity Quantity 7,000 Birds Installed Capacity 10,000 Birds Optimum Capacity Utilization 70% Working Days 365 Manpower 25
Financial Aspects Financial Aspects I. Fixed Capital a. Land and Building Amount(Rs. Lakh) Particulars Amount Land 13000 sq. ft. and land development 09 Built up area 12000 sq. Ft. 13 Total Cost of land and building 22
b. Machinery and Equipment Amount (Rs. Lakh) Description Amount Plant and instruments 2.5 Electrification And water Facility 1.7 others 0.7 Total 3.9
c. Pre-operation Expenses Amount (Rs. Lakh) Consultancy fee, project report, deposits with electricity department etc. 1.6 d. Total Fixed Capital Amount (Rs. Lakh) (a+b+c) 27.5
II. Recurring Expenses per Annum a. Personnel Amount (Rs. Lakh) Designation No Salary Amount Factory Manager 1 30,000 3.6 Supervisory staff 1 15,000 1.8 Skilled worker 10 5,000 6.0 Unskilled Workers 13 3,500 5.46 Total 25 16.86
b. Raw Material (Rs. Lakh) Raw Material 12.50 Feed 37.72 Miscellaneous 8.80 Total 59.02 c. Utilities Amount (Rs. Lakh) Power and Water 5.60
d. Total Recurring Amount (Rs. Lakh) (a+b+c) 81.48 III. Working Capital Amount (Rs. Lakh) Recurring Expenses for 3 months 20.37 IV. Total Capital Investment Amount (Rs. Lakh) Particulars Amount Fixed Capital 27.50 Working Capital 20.37 Total 47.87
V. Financial Analysis 1. Cost of Production (per annum) Amount ( Rs. Lakh) Particulars Amount Recurring expenses 81.48 Depreciation on building @3.33 per cent) 0.429 Depreciation on machinery@10 per cent 0.25 Interest on Capital Investment @12 percent 5.744 Total 93.6474
2. Sale Proceeds (Turnover) per year Amount (Rs. Lakh) Item Qty (Nos) Rate/kg(Rs.) Amount Sale of birds 4000 40 24.64 Sale of manure 6300 1.5 0.20 Processed products 2300 400 121.44 Total 6300 441.5 146.28
2. Net Profit (per year) = Sales- Cost of production = Rs.146.28 lakh- Rs.93.6474 lakh = Rs.52.6326 lakh 3. Net Profit Ratio = Net Profit / Sales X 100 = Rs.52.6326 lakh/Rs.146.28 lakh X 100 =35.96 per cent
4.Break Even Point in units =Annual Fixed Cost /Annual Fixed Cost +Profit =Rs. 27.5 lakh/(Rs. 27.5lakh+ Rs.52.6326 lakh) =Rs. 27.5 lakh/ Rs. 80.13lakh =Rs. 0.34 lakh =34,000 birds Cycle needed to reach break even =34000/6300 =5 (approx) Interpretation : As the value is positive I expect the project is feasible and adding to this, looking of the total net profit it can be interpreted that before completion of one year, the firm may achieve break even and from next year the firm may think for retailer and export expansion.
Project preparation