Post on 22-Nov-2014
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CONTENT
1. Executive Summary ObjectivesMissionKeys to Success.
2. Company SummaryCompany OwnershipCompany Locations and Facilities
3. Products and ServicesProductTechnologyFuture Products and Services
4. Market Analysis SummaryMarket SegmentationTarget Market Segment StrategyMarket TrendsDistribution PatternsMain Competitors
5. Strategy and Implementation SummaryMarketing StrategyPricing StrategyDistribution PatternsSells Forecast
6. Organizational Structure
7. Financial PlanCost SheetBreak-even AnalysisValue Chain
8. Risk ManagementRisk Associated with BusinessRisk Prevention 9. Beneficiaries.
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1. EXECUTIVE SUMMERY M&K rubber Co. Ltd.is owned by the Mampi dey & Koushik Malakar and it is in its initial level. Not yet started its operation but in recent future it will be establish in Panchaboti,Simna West Tripura. We are about to start planting with 1.22 Acer area each kani will consist 80 Rubber plants.Area :- 1.22 AcerPlants can be rooted: - 80/.4 acerLatex Produce:- 250 Kg/.4 Acer/MonthRecent Rubber Sheet Price: - Rs. 150/kgWeight of 1 Rubber Sheet: - 700- 660 gramLabor wage rate: - Male Rs.200/day, Female: - Rs.160/day
OBJECTIVE
Profit making. To increase the size of the land for more plantation. To nurture the rubber plants with fertilizers for reduce risk. To utilize labors optimally.
MISSION
M&K rubber Co. Ltd is committed of becoming profit making company.
KEYS TO SUCCESs
Establish an effective business model such as internal business processes, produce internally vs. outsourcing strategy, financial management control and quality control mechanism.
Establish a strategic distribution channel. To take care customers as well as employees.
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2. COMPA NY SUMMARY
OWNERSHIP
Company owned by both of the partners Mr. Koushik Malakar and Miss. Mampi Dey in equal share.
Company Locations and Facilities
Panchaboti, Simna, West Tripura PO-Ishanpur, Pin 799212
Our company will provide some of its Profit margin to the NGOs or for any other social welfare activity if needed.
PRODUCTSM&K Rubber co. Ltd. mainly focus on planting rubber and after certain years when Rubber tree became mature then we may procure latex from the rubber tree and process those latex into rubber sheets. We can sell those sheets to direct rubber industries or can sell it to Rubber Board as per the fluctuate price of that day.
TECHNOLOGY For better production from the rubber tree we will use fertilizers twice in a year To process the latex into a rubber sheet we have to install two machines.
FUTURE PRODUCTWe were thoughtful to process the oils from rubber seeds, moreover we can create our own nursing house of Rubber plants by using and processing the rubber seeds.
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3. MARKET ANALYSIS SUMMARY The market segment for our rubber sheets are rubber board and rubber industries.
TARGET MARKET SEGMENT STRATEGY
We will keep eye on the prices of rubber sheets, and based on a good amount we will sell our sheet to industries or rubber board.
Market trends of Rubber Sheet price
Tab. O1 From 10th March 2014 till 25th Price/100kg
10th 11th 12th 13th 14th 15th
Rs. 14650 Rs. 14700 Rs. 14700 Rs. 14700 Rs. 14800 Rs. 1490017th 18th 19th 20th 21th 22th
Rs. 14900 Rs. 14900 Rs. 14900 Rs. 14850 Rs. 14750 Rs. 1470024th 25th 26th
Rs. 14750 Rs. 14800
Tab. 02 Average Market Price Rubber Sheet Per 100kg
YEAR Price (Rs)2000-01 30362001-02 32282002-03 39192003-04 50402004-05 55712005-06 66992006-07 92042007-08 90852009-10 114982010-11 19003
We have given data from 2000-01 to 2010- 11, from the above table we can analyze that the average price of Rubber sheet per 100 k.g. is increasing yearly. So we can assume that there is intensity to increase the rubber sheet price in future also.
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SourceTable 01- http://rubberboard.org.in/rubberprice.asp?url=earlyrubberprice.aspTable 02- http://rubberboard.org.in/YearlyPricesPage.asp
DISTRIBUTION PATTERNS
Our company will distribute its sheets to rubber boards and industries we are not going for retail sell most probably we will transport the sheets by public vehicles and for outside of Tripura we can use transport of logistic companies. Distance of Rubber Board to our Business set up is 20km and 30k.m. for Agartala.
Main Competitors
Tripura is second rubber producing state of India and the market of rubber sheet is comparatively high .more over Tripura do have good climate for rubber cultivation so there is huge competition as well as opportunities too.
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4. STRATEGY AND IMPLEMENTATION SUMMARY
Business Strategy
Our business set up will set up in a remote area where price of land is less than land price of that of any town area.
Availability of cheap labors. Using good quality fertilizer.
Though business set up setting up in a remote area we can transport easily to capital
city within an hour.
Pricing Strategy
Our pricing strategy will be depending on the current market price of rubber sheets. During March the prices are fluctuating between Rs.14000- 15000 / 100 kg. So we will
sell our product on its market price.
Sells Forecast
As rubber sell will start after 7 years from the current year the sell forecast will be from 2021
Per 0.4 Acer Latex Production: - 1.22 Acer area x 250Kg/month = 750 Kg Latex produce in a Month
If I consider todays price then, 750 kg x Rs150 = Rs. 1, 12,500(One Lakh twelve thousand five hundred rupees) per month income
Now if we go for per Year production then, Rs.1, 12,500 x 12 months = 13, 50,000 ( thirteen lakh fifty thousand rupees) is our per year income. So the sell forecast will be
2021 2022 2023 2024 2025 2026RS. 1350000 Rs. 1350000 Rs. 1350000 Rs. 1350000 Rs. 1350000 Rs. 1350000
*excludes any expenses.
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5. ORGANIZATIONAL STRUCTURE
As our company’s operation is not started yet no management is build up, so we i.e. Mr. Koushik Malakar and Miss. Mampi Dey are the two members will run this business but when our operation gets started will recruit labors future use.
6. FINANCIAL PLAN
Land value: - 5 lakh/.4 Acer
Set up a Building: - for installing machines Rs. 60000. 140 sq. ft
Rubber Plant: - 240 no. Price: - Rs. 80/plant
Taping Tools: - 02, Price: - 240/ tool
Bowl: - 240, Price: - Rs6/ bowl
V: - 240, Price: - 0.40paisa/ Piece
Machine: - 01 set, Price: - Rs. 60000(Lining machine, Press Machine)
Shovel: - 02 Price: - Rs 300/ piece
Chopper: - 02, Price: - Rs. 130/Piece
Fertilizer: - 80 kg. /.4 Acer (twice a year) Fertilizer like ROK Price- Rs. 12/kg, Uria- Rs. 8/kg, MOP-Rs. 9/kg in ratio of (60:25:15)
Lime: - 06 kg Price- 20Rs./kg
Labor: - 2 labor wage: - Male Rs200/day Female Rs.160/day
Acid:- Rs. 40/ liter
Tray: - 03 Price; - 180/piece
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COST SHEET
EXPENDITURE SECTOR
1ST YEAR 2ND YEAR
Fixed capital Land
building machine & tools
3X5 lakh +25,000
1x52000+480+1440+600+260+540+96
0
total 15,79,030
Recurring cost Rubber plant
Fertilizer Lime loan
240X80= 19,200 844X3X2=5,064
6X 20= 1201,50,000
844X3X2=5,064 6X 20= 120
1,50,000
total 1,74,384 1,55,184
Workers For planting
For maintenance transport
200X 15x2= 6000 200X 50=10,000
5000
200X30+200X20= 10,000+1000+
total 21000 11,000
Total expenditure 17,74,414 19,40,598
Total income 0 0
Profit/ loss -17,74,414 -19,40,598
EXPENDITURE SECTOR 3RD YEAR
4TH YEAR
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Fixed capital Land
building machine & tools
0 0
total
Recurring cost Rubber plant
Fertilizer Lime loan
844X3X2=5,064 6X 20= 120
1,50,000
844X3X2=5,064 6X 20= 120
1,50,000
total 1,55,184 1,55,184
Workers For planting
For maintenance transport
200X30+200X20= 10,0001000
200X30+200X20= 10,0001000
total 11,000 11,000
Total expenditure 21,06782 22,72,966
Total income 0 0
Profit/ loss -21,06782 -22,72,966
EXPENDITURE SECTOR
6TH YEAR 7TH YEAR 8th YEAR
10
Fixed capital Land
building machine &
tools
60,000 0 0
total 60,000
Recurring cost Rubber
plant Fertilizer
Lime loan
844X3X2=5,064 6X 20= 120
1,50,000
12857X 2=25714
1,50,000
12857X 2=25714
1,50,000
total 1,55,184 1,75,714 1,75,714 Workers
For planting
For maintenan
ce transport
200X30+200X20=
10,0001000
200X2X130=52000
10,000
200X2X130=52000
10,000
total 11,000 62,000 62000 Total expenditure 40,65,334 43,03,048 45,40,762
Total income 0 13, 50 000 27,00,000 Profit/ loss -40,65,334 -29,53,048 -18, 40,762
EXPENDITURE SECTOR 9th YEAR 10th year
Fixed capital 0 0
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Land building
machine & tools total
Recurring cost Rubber plant
Fertilizer Lime loan
12857X 2=25714
1,50,000
12857X 2=25714
1,50,000
total 1,75,714 1,75,714 Workers
For planting For maintenance
transport
200X2X130=52000 10,000
200X2X130=52000 10,000
total 62000 62000 Total expenditure 47,78,476 50,16,190
Total income 40,50,000 54,00,000 Profit/ loss -7,28,476 3,83,810
EXPENDITURE SECTOR 11th yearFixed capital
Land building
0
12
machine & tools
total
Recurring cost Rubber plant
Fertilizer Lime loan
12857X 2=25714
total 25714Workers
For planting For maintenance
transport
200X2X130=52000 10,000
total 62000 Total expenditure 87,714
Total income 13,50000+2,96,096 Profit/ loss 17,76,666
BREAKEVEN POINT
Total expenditure up to 9th year is 43,03,048
And income is 13, 50 000 thus the loss is= Rs.7,28,476, and per month income is 1, 12,500.
7,28,476/1,12,500= 6.47 i.e. means 7thmonth (approximately), profit will starts after that point.
VALUE CHAIN ANALYSIS
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So, Total profit/ sheet=Rs. 35 (Rs. 105 – 70Rs)
7. RISK MANAGEMENT
Risk Associated With Business
Environmental factor like, Heavy rain, thunder.
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For 1 sheet we need 800 ml latex
So, the cost is Rs. 64 (1 liter = Rs.80)
We need 50ml acid in a single tray.
Cost of acid to be added with latex is Rs.2 (Rs.40/ liter
So, 64+2= Rs. 66
Machine cost Rs. 4 /Sheet So , 66+ 4= Rs. 70
• Total production cost per rubber sheet Rs. 70 for 700 gram.
• Market Price is Rs. 105
Change in Govt. Policy.
Other factors like, catching fire.
Risk Prevention
To avoid heavy rain we will cut branches before monsoon period.
To avoid risk of fire caught we will make fire lines.
Compensation from Insurance Company only on damage on natural calamities.
SOWT ANALYSIS
Strengths
We are getting cheap labour, as labor is available.
Land value is less
Rubber sheets is in demand.
We set up in remote area though it is near capital city and the distance is only of 30K.M.
Transportation cost is less.
Weakness
Production is less so we cannot export our product outside then the transport cost will be higher in compare to the profit which we will get.
Land size is less so the production is less.
Opportunity
After 10 year we are thinking about to buy more lands for plantation.
We might use the Rubber seeds to produce our own rubber plants.
We might make our own nursery house and sale plants.
Threats
Competitors are many.
Environmental and other factors.
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The Price is fluctuating daily, so cannot determine the price on our own.
8. BENEFICIARIES
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LaborsNursery houses.
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