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Candle industry

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Business Plan Candle Industry
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Page 1: Candle industry

Business Plan

Candle Industry

Page 2: 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

Page 3: Candle industry

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

Page 4: Candle industry

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.

Page 5: Candle industry

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.

Page 6: Candle industry

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.

Page 7: Candle industry

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

Page 8: Candle industry

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

Page 9: Candle industry

Production Program: No. of working days per annum - 300

days No. of working shifts (8 hrs per day) Installed Capacity (per day) – 400

Candles

Page 10: Candle industry

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:

Page 11: Candle industry

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

Page 12: Candle industry

Source of Finance:

Sl.No Particulars Amount

1 Partners Investment

(2,50,000 each)

5,00,000

Total Value 5,00,000

Page 13: Candle industry

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

Page 14: Candle industry

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

Page 15: Candle industry

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

Page 16: Candle industry

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

Page 17: Candle industry

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

Page 18: Candle industry

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

Page 19: Candle industry

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