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INDEX
Sr.No. Particular Page No.1. Introduction of S.S.I. 02
2. Project at Glance 04
3. Owners Bio-data 05
4. Organisation Structure 06
5. Justification of Location 07
6. Product Details 09
7. Suppliers of Raw-material 108. Processing of Food Products 11
9. Production Process 12
10. The Quality Commitment 13
11. Suppliers of Machinaries & Equipments 14
12. Chennal of Distribution 15
13. Market Development 16
14. Pricing Policy 1715. Financial Aspects 19
16. Financial Provisions 22
17. Break Even Analysis 27
18. Calculation of B.E.P. 28
19. Ratio Analysis 29
20. Sources of Finance 30
21. Summary 3122. Future Prospects 32
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INTRODUCTION OF S.S.I.
In todays era where global competition exists, there is a
need for professional management in every sector. Hence, theeconomists always say that the S.S.I. is the only base or pillar of the
Indian Economy. Most of the businesses carried out in India are on a
small scale.
The S.S.I. is enjoying the success of department economy
because it is the main part of the economy. It also provides the
platform and opportunity to the new entrepreneur. It provides the
employment opportunities, raw material or inputs to large scale and
middle scale industries.
S.S.I. is the base for the middle and large scale industries.
It also gives a chance to new entrepreneurs to start a unit with a
limited capital and it would ultimately play a major role in sharing the
development of the company.
The S.S.I. makes the perfect entrepreneurs through
experience and provides high quality of development towards
personality, skill and sense.
Definition :-
According to the Government of India, The industries
whose investment in the plant and machinery is up to Rs. 3 Cr. is
termed as Small Scale Industry.
- Budget of A.D. 2005.
The definition of S.S.I. does not remain certain and
constant because with the passing of time their parameters keep
changing.
In India, the literacy and education is now increasing at a
faster rate than before and so now more people have now started
moving towards the industry from agriculture. These people can get
self-development and self-esteem with the help of S.S.I. only.
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In India, before 1991, great importance was given to the
large-scale industries and there was hazardous avoidance of small-
scale sector, but after 1991, Government realized that only S.S.I. can
lead to the development of the Indian Econo my.
Hence, more emphasis is laid towards the S.S.I.
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PROJECT AT GLANCE
Name of the Unit :- PARTH FOOD PVT. LTD.
Registered Office :- University Road,
Nr. Indira Circle,
Paritosh Building,
Shop No.8,
Rajkot-360 004.
Location of the Unit :- Plot No. 205, GIDC,
Lodhika,
Kalawad Road,
Metoda,Rajkot-360 005.
Form of Organization :- Sole Proprietorship Firm
Name of Promoter :- Sadariya Prashant R.
Brand Name :- Kitty Wafer
Size of the Unit :- Small Scale Unit
SSI Registration Number :- Applied for
Subsidy Registration No. :- Applied for
Cost of Project :- 13,40,370
Means of Finance :- State Bank of India &
Own Capital
Sources of Capital :- 80 % owned Capital
20 % Borrowed Capital
Day Off Wednesday
E-mail Address [email protected]
Accounting Year 1s t
April To 31s t
March
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OWNERS BIO-DATA
Name :- Sadariya Prashant R.
Age :- 20 years
Address :- University Road,
Pushkar Dham,
Block No. 115
Rajkot.
Education/
Qualification :- B.B.A. (Third Year with Finance Running)
Responsibility :-
With a good communication ability and a little but
effective experience in the field of Finance. Mr. Prashant
will handle the Finance & Audit of the unit.
Experience :-
Mr. Prashant is having a 6 Months of experience in the
Finance field of one of the F.M.C.G. Product. He is having
the good communication ability.
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ORGANISAION STRUCTURE
Organization Structure
Marketing
Manager
Finance
Manager
Production
Manager
Personnel
Manager
Salesman Office Staff AccountantProduction
In-char e
Workers
OWNER
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JUSTIFICATION OF LOCATION
Tax Benefit :-One reason why the location on has been selected over there was of
the Tax Benefit. Because it is an industrial area. Tax Benefit is given to
motivate entrepreneurs for expanding the business.
EASY LABOUR SUPPLY :-As the selected location is situated in rural area [Metoda] and the rate
of lower class People are very high. There is an easy availability of labor at
low wages, that ultimate reduce total cost of the product. So, the need of
unskilled worker can fulfill easily.
SOCIAL RESPONSIBILITY :-It is again consider as a part of social responsibility. The location
selected is far distance from the living area of people and we are providing
employment to rural area.
EASY AVAILABILITY OF RAW MATERIALS :-Raw material like Potatoes etc. at the same time water, diesel, power, fuel is
also available easily.
LARGE LAND AVAILABILITY :-Large plots of the land are available at area selected which makes
factory to build separate area for store room, office, gate security office etc.
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POWER :-As we know it is the foremost thing requires for production process.
Here powers in terms of electrical diesel etc. are available, because factory is
situated in an industrial area. There will be a sufficient power supply and the
uniformity in getting supply can be maintained.
GOVT. SUBSIDIES & FACILITIES:-As the location selected is in the industrial area, govt. help by making
capital, land, Water and power available at subsidies rates. The govt. may give
such facilities as tax exemption, banking, insurance and postal facilities at lowrates.
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PRODUCT DETAILSBrief description of product of the firm is as follows:
Any person who is said to be a diamond in his field. The word itself
gives us the idea that how precious it is.
With the change in time, people move towards the snack food. As the
consumption of food products like wafer is more preferable and hence the demand
of wafer has increase day by day.
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Suppliers of raw-materialThe raw-material is the important component of the production
process. When the raw-material are collected then and only then. Production is
posssible if the raw-materials are available in cheapest way it is the most important
advantages for the firm. The raw-material can be compared to water air and fuel.
For human beings which are very important so as the raw-material for the firm.
The main raw-material means POTATO will bring from marketing
yard at reasonable rates.
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Processing of Food Products Why do we process food ?
To convert to edible products
To preserve
To extend availability and provide accessibility
To provide variety & choice
To provide convenience
To add value
Unit Operations :-The processed involved in manufacturing food products are known as
unit operations. These include:
Storage e.g. keeping raw materials in good conditions.
Cleaning e.g. removing foreign matter.
Sorting / grading e.g. assessing the quality Size reduction e.g. firming, slicing, trashing
Mixing looming.
Heat transfer e.g. cooking & cooling.
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pRODUCTION processMost food which is manufactured goes through a number of common
steps. The specific details of each may differ but the basic principles are the same.
Vertical elevator
Slicer
Slice Waser
Blancher
Shuker
High Speed Belt
Fryer
Inspection Converge
Spice Dram
Packaged and labeled
Stored usually on pallets
Dispatched for transportation
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The Quality CommitmentKitty wafer industry is located at Strategic location for convenience
and constant output and easy distribution. Industry has the latest machinery with
automatic packing facilities.
All products are manufactured under the most hygienic conditions.
Great care is exercised in the selection and quality control of Raw Materials,
Packing Materials and rigid quality Standards are ensured at every stage of the
manufacturing process. Each batch of biscuits is thoroughly checked by expert
staff, using the most modern equipment.
THE CUSTOMER CONFIDENCE:
The consumer is the focus of all activities at Food industry
Maximizing value to consumers and forging enduring customer relationships are
the core endeavors at Kitty wafer industry.
Our efforts are driven towards maximizing customer satisfaction and
this is in synergy with our quality pledge.
Kitty wafer industry will strive to provide consistently nutritious &
quality food products to meet consumers satisfaction by using quality materials
and by adopting appropriate processes. To facilitate the above will strive to
continuously train our employees and to provide them an open & participative
environment.
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SUPPLIERS OFMACHINARY AND EQUIPMENTIn firm machinaries are as important as finance and raw-material.
Now a days due to change in technology there has been a great change in the
machines and equipment. For longer survive in market these new technology have
been adopted by our firm. Due to advancement in technology, suppliers are
providing machine and equipments of good quality at reasonable cost to our firm.
There some name of the suppliers who facilitate us very well,
Mahavir Machinary Pvt. Ltd.
79,DLF, Industrial Area,
New Delhi.
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CHANNEL OF DISTRIBUTION Channel of Distribution is the set of marketing institution
participating in the marketing activities involved in the movement of the flow ofgoods or services from the primary produce to the ultimate consumer.
In case of Parth food Pvt. Ltd. They are following as under :
Manufactures
Dealers
Whole Sellers
Retailers
Customers
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Market DevelopmentMarket development involves creating or expanding a Market. To new
or existing products and/or increasing the value of these products. The strategy of
the product will depend on the current stage in the product life cycle. Once more
people know, a significant challenge is going to get more people to actually try the
product. This is due to vast choices of other products that consumers can consume.
The strategic planning process in order to make good investment
decision with respect to how much to spend on Marketing & how to allocate this
spending among opportunities available e.g. advertising & price promotions. It is
useful to go through a strategic planning process.
As this is a new product in the Market. So, one has to see that there
should be cost reduction by improving the quality. So the maximum use of
available resources can work at this stage but again here, the specialized product
i.e. only tomato & other nankeen wafer will be produce. There will be a
considerable beginning power because of large quantities purchased. Firm canadopt new technology and can develop research & develop department efficiently
that allow superior quality & performance.
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PRICING DECISIONPricing is a very critical decision for any organization. Price is the
only element of marketing mix that produces revenue and all the other element
produce costs. It is also counted as one of the most flexible elements of the
marketing mix as in that it can be changed quickly as per the market position and
demand unlike the other Ps of the marketing mix.
At the same time pricing decisions and pricing strategies is the
number one problems faced by the companies. Pricing becomes important as bysetting the right price only can a company generate profiles. If the prices of the
product are not right or not set according, the company may have huge losses.
A uniform price for the entire product is ruled out because the nature
of goods or services they produce or provide. The production function and market
situation are not uniform. Hence, it is based on the nature of the business.
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FINANCIAL ASPECTSLAND :-
Sr.
No.
Particulars SquareMeter
Rate PerSq. Meter
Amount
1. Open Land 400 500 2,00,000
2. Registration - - 79,000
TOTAL :- 2,79,000
BUILDINGS :-
Sr.
No.
Particulars Area Rate PerSq. Meter
Amount
1. Factory Shed 300 1,000 30,000
2. Office 50 1,200 60,0003. Other (R & D,
bathroom, water
Tank Designingetc.)
50 1,350 67,500
TOTAL :- 4,27,500
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PLANT& MACHINARY :-
Sr.
No.
Particulars Area Rate PerSq. Meter
Amount
1. Potato Washing
Machine
01 2,25,000 2,25,000
2. Potato Slicing
Machine
50 1,200 60,000
3. Other (R & D,water TankDesigning etc.)
50 1,350 67,500
TOTAL :- 3,52,500
FURNITURE & VEHICLE :-
Sr.
No.
Particulars Amount
1. Office Furniture 2,27,000
2. Vehicles 7,65,000TOTAL :- 9,92,000
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WORKING CAPITAL COST OF PROJECT :-
Sr.
No.
Particulars Amount
1. Value of raw-materials 7,39,200
2. Wages & Salary 1,03,500
3. Electricity bills 14,400
4. Overhead Expenses 5,700
Total Working Capital (one year):- 8,62,800
Total Working Capital (one month):- 71,900
TOTAL COST OF PROJECT :-
Sr.
No.
Particulars Amount
1. Fixed Assets 16,15,5002. Working Capital (two months) 1,43,800
TOTAL COST OF PROJECT :- 17,59,300
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FINANCIAL PROVISIONSLOAN :-
MEANS OF FINANCE :-
Sr.
No.
Particulars Amount
1. G.S.F.C. 6,30,000
2. Own Contribution 5,79,300
3. Bank 5,50,000
TOTAL :- 17,59,300
Sr.
No.
Particulars G.S.F.C. OWN BANK Total
Amt. Rs.1. Land 1,30,000 1,00,000 - 2,30,000
2. Building 2,00,000 77,500 1,50,000 4,27,500
3. Plant &
Machinary
3,00,000 2,66,000
-
5,66,000
4. Furniture &
Vehicles
- 92,000 3,00,000 3,92,000
5. Working
Capital
- 43,800 1,00,000 1,43,800
TOTAL :- 6,30,000 5,79,300 5,50,000 17,59,300
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RAW-MATERIAL :-
LABOUR CHARGES :-
Sr.
No.
Description No. of
Require
Salary Yearly
Salary1. Skilled Labors 01 2,500 30,0002. Semi- skilled Labors 01 2,000 24,000
3. Unskilled Labors 02 1,500 36,000
TOTAL :- 04 -- 90,000
Add:- 15% Other
Benefit
- -- 13,500
Total Labor Charges:- - -- 1,03,500
ELECTRICITY BILL :-
Sr.No.
Particulars Require-ment
RATE MonthlyRs.
YearlyRs.
1. Potato 28,000 1.10 30,800 3,69,600
2. Spices 28,000 1.10 30,800 3,69,600
TOTAL :- 56,000 - 61,600 7,39,200
Sr.
No.
Particulars Monthly Rs. Yearly Rs.
1. Electricity Bill 1,200 14,400
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REPAIRS & MAINTENANCE :-
Sr.
No.
Particulars Yearly Rs.
1. Repairs & Maintenance 13,000
INSURANCE & TAXES :-
Sr.
No.
Particulars Yearly Rs.
1. Insurance & Taxes 12,000
DEPRICIATION :-
Sr.
No.
Particulars Rate of
Depreciation
Yearly Rs.
1. Building 5% 21,375
2. Machinary 15% 84,900
3. Furniture 10% 39,200
Total Depreciation - 1,45,475
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INTEREST :-
ADMINISTRATIVE EXPENSES :-
Sr.
No.
Particulars Principle
Amt. Rs.
Yearly
Interest1. G.S.F.C. 6,30,000 1,00,800
2. Own Contribution (15%) 5,79,300 86,895
3. Bank (18%) 5,50,000 99,000
Total Interest - 2,86,695
Sr.
No.
Particulars Monthly Rs. Yearly Rs.
1. Stationary 500 6,000
2. Postage & Telephone 1,200 14,400
Total Amount 1,700 20,400
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TOTAL COST OF PRODUCTION :-
Sr.
No.
Particulars Yearly Rs.
1. Raw-materials 7,39,200
2. Labor Charges 1,03,500
3. Electricity Bill 14,400
4. Repairs & Maintenance 13,000
5. Insurance & Taxes 12,000
6. Depreciation 1,45,475
7. Interest 2,86,6958. Administrative Expenses 5,700
TOTAL COST OF PRODUCTION :- 13,40,370
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= Rs. 8,60,910
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CALCULATION OF B.E.P.Particulars Amount (Rs.) Amount (Rs.)SALES 18,83,280
Less : Variable Cost :- Raw materials Labor charges Administrative expenses Electricity Bill Overhead Expenses
7,39,2001,03,500
20,400
14,400
5,700 8,83,200
Contribution :- 10,00,080
Less : Fixed Cost :- Interest Depreciation Insurance & Taxes Repairs & Maintenance
2,86,695
1,45,475
12,00013,000 4,57,170
Profit Before Tax :- 5,42,910
Less : Income Tax @ 35% 1,90,019
Net Profit :- 3,52,891
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RATIO ANALYSISProfit Volume Ratio :-
= Contribution * 100
Sales
= 10,00,080 * 100
18,83,280
= 53.10 %
NetProfit Ratio :-= Net Profit * 100
Sales
= 3,52,891 * 10018,83,280
= 18.74 %
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SOURCES OF FINANCEIn the market there are lots of finance resource are available through
any firm can survive for longer time or can start his/her own business or can have
expansion of the business.
The finance will be available through the bank and from the promoter
of the firm Rs. 5,50,000/- will be available as the bank loan and the remaining
portion Rs. 5,79,300/- will be available from owner of the firm.
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SUMMARYLooking towards the current tend and demand of food packets the
future of project seems to be very bright. Day by day the use will increase as the
price rise in demand of it. In addition, it is very easy to maintain the management
of this business.
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Future prospectsAfter some time prospects to produce varieties of the wafer. As the
starting of this project is little bit easy. It becomes profitable for the firm. To start
these there would necessary of the same machinery of the firm.