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Business Plan
Candle Industry
General Information General Information:o Name of the Firm :Shine Industries o Type of Organization :Partnership Firmo Name of Partners :Ankit Porwal o Vishal
Chakravarthio Project :Candle Industryo Location :K.I.A.D.B Ind
Area BIJAPUR-03
VISION:- To enlighten the each and every family.
MISSION:- To become a dominant player in the chosen
field Evolve and upgrade knowledge, products, and
services
PRODUCTION PROCESS 1st the wax is been heated and the wax is
been converted into liquid. That liquid to filled into chalk moulds machine
which will convert liquid into solid form. Later that is been sent camphor machine to
give shapes to the candles. And Last it is been sent for packing. This is the
process which will take 3hours of time to produce 200 candles.
SWOT ANALYSIS Strengths
Availability of Low Cost and Skilled Manpower provides competitive. Advantage to industry
Growing Economy and Potential Domestic. Weakness
Competition with others candle manufacturing Opportunities
Large Market.
Threats Now days many are not going to buy and give more
important to the candle.
MARKETING PLAN Target Market
In India problem of electricity is known as one of the big problem mainly we concentrating on villages 1,80,000 villages are there in India and using candles rural people are our target as well as urban people this problem is all over in country
Marketing Mix
Product Features good quality with low price.
Price Reasonable Price
Promotion Our product is promoted through: Advertisements in local news paper. Bill boards and hoardings.
Place We have adopted direct marketing with no intermediaries. Our
product is marketed online through our own website and our own retail outlet in all cities.
HUMAN RESOURCE PLAN
S.No Particulars No Wages/
Salaries
(PM)
Annual
Expenses
1 Managers 1 5,000 60,000
2Semi skilled
Labours2 3,500 84,000
3Unskilled
Labours4 2,500 1,20,000
Total 7 2,64,000
Raw material
S. No
Particular Amt per unit
1 Wax 2.00
2 Thread 0.50
3 Colors 0.50
4 Plastics 1.00
Total
4.00
Production Program: No. of working days per annum - 300
days No. of working shifts (8 hrs per day) Installed Capacity (per day) – 400
Candles
FINANCIAL PLAN
Sl.No Description Nos. Required Rates Total Value
(Rs)
1 Chalk moulds 2 25,000 50,000
2 Camphor
machine
2 20,000 40,000
3 Heater 1 20,000 20,000
Total 1,10,000
Machineries / Equipments:
Total cost of the Project:
Sl.No Particulars Total Value
1 Fixed Capital
i.Land & Building
ii.Machineries
2,50,000
1,10,000
2 Working Capital 1,00,000
3 Preliminary & Pre-Operative
Expenses
20,000
Total Value 4,80,000
Source of Finance:
Sl.No Particulars Amount
1 Partners Investment
(2,50,000 each)
5,00,000
Total Value 5,00,000
Estimated Cost sheet
ParticularsAmount
Per units Fro 400 unit
Direct material 4 1600
Direct labour 1 400
Prime cost 5 2000
Add Factory Overhead 1 400
Works cost 6 2400
Add Administrative Overhead 1 400
Cost of production 7 2800
Add Selling and Distribution Overhead 1 400
Cost of product 8 3200
Profit 2 800
Selling Price 10 4000
Calculation of B.E.P Sales = 10 * 1,00,000 = 10,00,000 Variable cost =6 * 1,00,000 = 6,00,000 Fixed cost =97,000 Contribution = Sales – Variable Cost = 10,00,000 - 6,00,000 = 4,00,000 Profit volume ratio = Contribution*100 Sales = 4,00,000* 100 10,00,000 = 40% B.E.P = Fixed cost * 100 P/v ratio = 97,000 * 100 40 =2,42,500 B.E.P in units = 2,42,500 = 24250 units 10
FINANCIAL STATEMENTS
Particulars Amount Particulars AmountTo Purchases 4,80,000 By Sales 10,00,000ManufacturingExpenses
1,20,000 Closing stock 2,00,000
Wages 2,04,000Gross profit c/d 3,96,000
Rs. 12,00,000 Rs. 12,00,000To Salary 60,000 Gross profit b/d 3,96,000To Distribution exp 1,00,000To net profit c/d 2,36,000
Rs 3,96,000 Rs 3,96,000
Trading and Profit and loss accountDr For the year ending 31st march 2013 Cr
Balance Sheet As on 31st march 2013
Liabilities Amount Assets Amount
Capital
5,00,000
Add net profit
+2,36,000
7,36,000 Land & building 2,50,000
Less Depn -12,500
2,37,500
Creditors 65,000 Machinery 1,10,000
Less Depn -11,000
99,000
Investment 2,00,000
Debtors 1,20,000
Preliminary Exp 20,000
Less Written off - 2,000
18,000
Cash in hand 1,26,500
Rs 8,01,000 Rs 8,01,000
FINANCIAL STATEMENTS
Particulars Amount Particulars AmountTo Opening Stock 2,00,000 By Sales 13,50,000To Purchases 5,80,000 Closing stock 2,00,000ManufacturingExpenses
1,95,000
Wages 2,24,000Gross profit c/d 3,51,000
Rs. 15,50,000 Rs. 15,50,000To Salary 65,000 Gross profit b/d 3,51,000To Distribution exp 1,35,000 Interest On Investment 15,000To net profit c/d 1,66,000
Rs 3,66,000 Rs 3,66,000
Trading and Profit and loss accountDr For the year ending 31st march 2014 Cr
Balance Sheet As on 31st march 2014
Liabilities Amount Assets Amount
Capital 7,36,000
Add net profit +1,66,000
9,02,000
Less Drawings -
2,00,000
7,02,000
Land & building 2,37,500
Less Depn: -23750
2,13,750
Creditors 1,20,000 Machinery 99,000
Less Depn -9,900
89,100
Investments 2,00,000
Debtors 1,80,000
Preliminary Exp 18,000
Less Written off -3600
14,400
Cash in hand 1,24,750
Rs 8,22,000 Rs 8,22,000