cannd mushroom

7/31/2019 cannd mushroom

1/60

A

PRODUCT PROJECT REPORT

ON

CANNED

MUSHROOMS

Name : JHALA AVANIBA N.

Roll No. : 16

Class : T.Y.B.B.A.

Year : 2006 2007.

College : Shri J.H.Bhalodiya womens college

* Submitted To *

Saurashtra University RAJKOT.

* Guided By *

Prof. Vijay Bhatasna

Prof. Smita C. Vyas


2/60

* DECLARATION *

I Jhala Ananiba N. the students of T.Y.B.B.A. in shri

J. H. Bhalodia womens college, here declare that the project

work presented in tis report is my own work & has been carried

out under the supervision of Prof. Smita C. Vyas of Shri J. H.

Bhalodiya womens college.

The work has not been the submitted to any other

university for any examination.

Date :

Place : RAJKOT

SignatureAvaniba Jhala


3/60

* PREFACE *

For a Socio-economic growth & balanced structure

development, small scale industries are a very important tool. It

is considered highly for the creation of employment

opportunities as well as development of entrepreneur skills. The

better use of scarce financial resources & appropriate

technology is also ensuring by the small-scale industries.

In the present era of big industries global

competition, the condition of position of SSI is not in the best

form. So, there is a great need to change the style of

management. In the syllabus of T.Y.B.B.A. university has

include the subject of entrepreneurship & management of smallbusiness. The main use of this subject is to teach, to solve

problems & to take decisions I the management of small

business.

I am extremely, happy to submit this report for SSI,under the prescribed syllabus of Saurashtra university. I have

got a chance to acquire practical knowledge at the time of

collecting information. I have prepared a project a report on

Canned mushrooms. I have tried my level best to make this

report most presice, relevant & systematic.


4/60

* ACKNOWLEDGEMENT *

Successful accomplishment of any work requires co-

operation, help & guidance from many people. I had a wonderful

opportunity to make a product project report on Canned

Mushrooms as a part of my practical training in T.Y.B.B.A.

This report would not have been possible without the

help of many people whom I would like to acknowledge & thanks

for their kind co-operation.

First of all I thanks Shri J. H. BHALODIA

WOMENS COLLEGE RAJKOT. For giving me opportunity of

doing product project report.

I would like to thank my respected principal Mr. N. H.

KORINGA for giving me such an opportunity to have an insight

into the small scale business work in the form of this product

project report.

I specially thank Prof. SMITA VYAS H.O.D for

giving me important guidance for making the project informative

& well constructed. She had spent her precious time for my

product project report. It would be impossible for me to


5/60

complete this project without her important instructions 7

supervision.

I thank All My FRIENDS AND CLASSMATES forgiving me important guidance, which is very helpful for me to

complete my project in perfect time duration.

I thank All HIDDEN PERSONALITIES, who played

important roles to complete my product project report

successfully.

At last, but not least. I thank MY PARENTS &

FAMILY MEMBERS to give me every kind of support & almighty

the GOD for helping me out whenever I viewed an obstacles, as

they have left no stone unturned & betterment.

Date :

Place : RAJKOT

Signature

Avaniba Jhala


6/60

* MAIN INDEX *

No. Particulars Pg. No.

1. Introduction to S.S.I.

2. Project at a glance3. Bio-data of partners

4. Basis & Presumptions

5. Organizational structure

6 Implementation schedule7. Location Justification8. Portrait of Product

9. Details of Raw-Materials

10. Marketing Analysis11. Production process

12. Quality control & standards13. Production capacity

14. Pollution control

15. Energy conservation16. Machinery Utilization

17. Financial Aspects18. Financial Analysis

19. Profitability Analysis

20. Break-even analysis

21. Computation of Ratios22. Risk factors23. Benefits for Export-oriented unit

24. Future prospects

25. List of Suppliers26. Conclusion


7/60


8/60

* PROJECT AT A GLANCE *

Name of the unit : Varni canned mushrooms

Address for Communication : Varnicanned mushrooms,

Sir Lakhajiraj road,

RAJKOT.

Type of the unit : Partnership firm

Location of the unit : Varni canned mushrooms

G.I.D.C., Metoda

Kalawad roadRAJKOT.

Name of the product : Canned mushrooms

[Export orinted]

S.S.I. registration no : Applied for

Partners name : Ananiba Jhala

Kripalsinh Rana


9/60

Brand name : Healthy Bite

Banker : ICICI* BIO-DATA OF PARTNERS *

PARTNER I

Name : Jhala Avaniba N.

Address : Pramukh Drashti,

29, Sadguru nagar,

Opp. Ruda-2

Kalawad road,

RAJKOT 360005.

Educational Qualification : M.B.A. With Marketing &

Finance.

Age : 24 yrs.

Experience : 2 yrs.

Financial contribution : 25%

Role in the unit : Managing Marketing & Finance


10/60

*PARTNER II *

Name : Rana Kripalsinh N.

Address : Pramukh Drasti,

29, Sadguru nagar,

Opp. Ruda 2

Kalawad road,

RAJKOT 360005.

Educationsal Qualification : M.D. [Medicine]

Age : 28 yrs.

Experience : 2 yrs.

Financial contribution : 15%

Role in the unit : Research activity


11/60


12/60

(i) Building @ 5% &

(ii) Plant & Machinery @ 20%.

9. Interest on total capital investment has been taken @ 14%

per annum.

10. Minimum 40% of the total investment is required as

margin money.

11. Pay-back period of the project will be 7 yrs. with yearly

Installments.

12. Break-even point has been calculated on full capacity

Utilization.13. For smooth functioning of the unit, it is suggested that

unit should have own arrangements for cultivation of

mushroom for consistency & regular availability of quality

raw-materials.

14. Mushroom cuttings/stems can be utilized for preparation f

mushroom pickles & sold in local markets to get additional

profit.


13/60

*ORGANISATION STURCTURE *

Board of Directors

M. D. / Chairman

V.P./E.P. V.P./E.P V.P./E.P V.P./E.P

(Production) (Marketing) (Finance) (Personnel)

Manager Manager Manager Manager

Assistance Assistance Assistance Assistance

Salesman


14/60

* IMPLEMANTATION SCHEDULE *

The following steps are involved in implementation of

the project.

1. Selection of site

2. Form of ownership

3. Feasibility report

4. Registration with D/C.

5. Arrangement of finance (term loan & W.C.)

6. Construction of factory shed & Building

7. Procurement of machinery & Equipment

8. Plant erection & electrification

9. Recruitment of manpower

10. Arrangement of raw-material including packaging

material.

11. Selection of marketing channel

12. Miscellaneous: Power & water connection, pollution

control board, clearance etc.

As it is a 100% export oriented unit of canned mushroom,

normally project. Efficient planning & simultaneous operations

will be major factors for timely stare of the production.


15/60

* LOCATION JUSTIFICATION *

Location is the prime factors to be considered for

starting a new business.

Location of plant or industry means a scientific

choice of a region or specific sight in a region where the

business unit is to be situated.

In other words the main object of an industries is

to maximize profit through minimization of production &

distribution cost. The objective is realized only if the firm is

located at a place which offers all economics of production &

distribution.

The location should be either near to the customer

i.e. market or where raw-materials is easily available. The

location should be such which can provide ancillary facilities like

water, electricity, communication, transportation & easy

availability of labour. In other worlds it can also be said as :


16/60

Selected location on one side can earn variety of

benefit & any mistake in selection of location on the other side

can result in a great loss.The following factors have been considered at the

time of choosing the above location.

Raw-materials:

The major component or major input which is an

inevitable part of any production process is the availability of

raw-material. Raw-material at proper time & at reasonable cost

& in right quantity directly affects the price of he final product.

Availability of labour:

Availability of labour influences the selection of

location. Unit requires both semiskilled & skilled labors. Both

type of labour can be made available from the local are so

availability of labour never creates problems.

Transportation facilities:

Transportation is required for assembling of raw-

materials & distribution of finished product.


17/60

For the distribution of he finished product, trucks,

rickshaw will be used & for a exporting out of the nation ships

will be used. As the product is of lightweight & not of costlynature.

Land:

The basic necessity for each & every industry is land

without land no industry can be come into existence. Our unit is

situated at Veraval-shaper.

Water & Electricity:

This area has no problem of water & electricity is

also easily available with the help of the PGVCL.

Other anciliary services:

Rajkot is considered as the main hub of Saurashtra

region as far as banking, insurance, technical assistance etc. isconcerned.

Hence, it can be concluded that selection of location

of unit is really necessary as it helps a lot in lowering the cost of

production.


18/60

* PORTRAIT OF PRODUCTS *

Mushroom, a fungus trait body, is considered a

delicious food all over the world because of its taste aroma &

structure. It is full of nutrients, low in calories, high in proteins,

vitamins, minerals & a rich source of folic acid. It is an alternate

choice for weight conscious people & anaemic patients. It has

4.9% protein content which is more than cow-milk, green-

vegetables such as beans etc.

Mushrooms are highly perishable commodity & should

be marketed & consumed as soon as possible after harvest

because of their high moisture content (90.92%). However, its

shelf-life can be enhanced for a larger period by way of

processing. Generally mushrooms are processed-frozen dried &

canned.

This project profile has been prepared for canning of

mushrooms, for a 100% export-oriented unit. The agricus

bisporus [white button] type of mushroom is suitable &

preferred for commercial canning.


19/60

* DETAILS OF RAW-MATERIALS *

No. Particulars Quantity Rate

(in Rs.)

Amount

(Rs. In lakhs)

1. Mushrooms AGrade(canningQuality)

55 tonnes 35,000 19.25

2. Salt, sugar, criticAcid, chemicals,preservations.

L.S - 0.25

3. A-21/2 can 75,000 12.00 each 9.00

4. Carton Boxeslabels, Gums, Box

6,250 15.00 each 0.94

5. Serapping etc.wastage of canescartons

L.S. - 0.85

6. Boxes, labels etc. L.S. - 0.15

Total 30.44


20/60

*MARKETING ANALYSIS *

INDEX

No. Particular Pg. No.

1. Market Potential

2. Market channel

3. Pricing decision

4. Promotion Decision


21/60

* MARKET POTENTIAL *

It has been estimated that the export market of

canned mushrooms in the world trade is about US $ 1000 million.

The world trade of mushroom is expected to reach a staggering

figure of US $ 15 billion by next 5 years.

The present global demand of mushroom is about

1,15,000 tonnes per annum. It is also estimated that the gap

between the demand & supply of mushroom in the world market

is around 25 lakh tones. The consumption of mushroom is going

up at the rate of around 10% in international market.

At, present, china, Taiwan & Indonesia are the main

producers of mushroom products which also capture the major

share of world market over 50% of the total world production

of the mushroom, is sold in fresh form, mainly in producers

domestic markets. The balance is processed. i.e. dried, frozen,

canned etc. It has also been estimated that 50% of the

mushrooms for processing are canned.


22/60

The major importing countries are Germany, U.S.A.,

Canada, Japan, Australia etc. In India, Present production is

around 30,000 M.T. as per the information available fromAPEDA(2001-2002) 15897 M.T. of mushroom of he value of Rs.

72,47,54,829 is exported. Total export is divided into 2

categories. i.e. Fresh mushroom 1,17,97,631 kg. value Rs.

51,05,30,325 & prepared & preserved 40,99,258 kg., value Rs.

21,42,24,504 which is a very negilible figure as compared to the

world share.


23/60

* MARKET CHANNEL *

If you can sell your mushrooms or mushroom

products directly to an end user, you will naturally receive a

better price than if you sell to a wholesaler.

Direct marketing of mushrooms at local farmers

markets, to restaurants, or in supermarkets is possible in manylocations. When competing in local markets, excellent service,

top quality & consistent supply rather than the lowest price,

might win the sale, particularly with gourmet chefs. Some chefs

specialize in locally grown foods & may be interested for that

reason. Other are willing to pay for fresh, premium produce. Inany case, establishing a relationship with the buyer & reliably

delivering a quality product are essential for this type of

marketing.

Local grocery stores are another potential buyer tofresh mushrooms.

Although the wholesaler with an established account

creats stiff competition, the small, efficient producer might

still have an advantage in some niche markets.


24/60

Selling fresh mushrooms to a wholesaler will mean alower price than if you market directly. However, for growers

who choose not to involve themselves in direct sales. There are

established wholesale markets for mushrooms.

Small-Scale commercial production of white-button

mushrooms & other Agaricus varieties such as portobellas &

criminis is not recommended for the beginner, except on a small

scale for direct marketing.

A significant capital outlay & a high level of

management skills are required to begin production & at current

prices, recovery of he initial investment might not be possible.

The market is extremely competitive.


25/60

* PRICING DECISION *

Prices play a vital role in the regulation of the

entire spectrum of economic activities, particularly in small-

scale industries. A competitive economic system is essentially

based on price mechanism. Prices serve as guide posts in :

(i) Organising production(ii) Fixing standards [quality]

(iii) The distribution of the product

(iv) Providing for economic maintenance & progress.

(v) Adjusting consumption over short periods.

Influencing factors:

Cost of production

Cost of Raw-materials

Prevailing demand

Competitors price

Pricing Method

Cost + Pricing


26/60

* PROMOTION DECISION *

To increase the sales volume is also an important

marketing goal. When any company is facing some marketing

problem like decreasing sales volume, decreasing popularity for

that purpose to increase the quick sales promotion.

Objectives:

Brand awareness

Brand preference

Brand loyalty

Budget:

Rs. 20,000 per month

Tools:

Sign boards

Hoardings

Catalogs

Printed materials

Other materials of social group


27/60

* PRODUCTION PROCESS *

While button mushroom (Agarious bisporus) are

preferred over other types of mushrooms for canning.

Commercially, mushrooms are canned in brine. The process

involves the following steps.

a) PICKING: Mushrooms are picked at button stage [cap.Diameter 2-2.5 c.m.] by gentle hand twisting. The soil &

portion carrying any microbial flora is then cut

off/removed with the help of a sharp edge stainless steel

knife/blade. The stalk length should preferably be kept

0.5-1 cm. long.b) Sorting & granding: Diseased, damaged/bruised,

shriveled & browned mushrooms are discarded & only the

healthy white & tight buttons are selected & separated

into 2 grades. i.e. Cap. Diameter up to 2.5. cm with compact

head as A & cap. Diameter beyond 2.5 cm as B grade.c) Washing : Graded mushrooms are thoroughly washed 3-4

times in cold running water to remove adhering dirt, soil,

etc. without damaging or rubbing them excessively.


28/60

d) Blanching: To inhibit enzymatic activity blanching is

necessary. It also inactivates micro-organisms & removes

the air from the raw-materials to achieve a satisfactory &uniform pack.

Mushrooms are blanched in boiling water for 2-3

minutes followed by immediate cooling in cold water. However, to

reduce leaching losses, steam blanching is preferred, because

the leaching losses in boiling water had been estimated to be

about 30%.

e) Filling of cans: Mushrooms are commercially packed in 2

can sizes i.e. A-1 tall can & A-2.5 A-1 tall cans are

preferred by retailers while A-2.5 cans are liked by

boteliers, exporters & other establishments.

The blanched mushrooms are filled into cans with

declared drain weight i.e. 440 gms. In A-2.5 can.

f) Filling of cans: After filling the cans with mushrooms

strained hot brine solution of 2% common salt, 1% sugar &

0.05% citric acid is added up to the brim of the can.

Brining adds flavour to the product, reduces processing

time & enhances the shelf life of canned mushrooms.


29/60

g) Exausting: After brining, cans are exhausted to remove

any entrapped air & other accumulated gases from the

product to ensure a longer shelf life.

Cans filled with brine solution are fed to the exhaust

box for a specified period of time depending upon the length of

exhaust tunnel & size of container. The shorter the tunnel, the

longer will be the time required for exhausting. Exhausting can

also be performed by placing the filled cans in boiling water till

temperature of he center of can reaches 85-90o c for 1-2 mts.

h) Seaming/can closing: Immediately after exhausting, cans

are sealed with the help of a double seamer to get

hermetically sealed container. Sealed cans are then placed

in upside down position to sterilize the closed lids.

i) Processing/sterilization: Processing, also designated as

sterilization, is an indispensable unit operation in canning.

This is accomplished by processing the hermetically sealed

cans at a pressure of 15lbs PSI for a specified period of

time depending upon the size of can & altitude of

processing place. However, for areas like shimla,

processing time for A-2.5 size cans is recommended to be

45 minutes.

j) Cooling: Cooling of cans is done immediately after

sterilization in cold running water to room temperature in


30/60


31/60

QUALITY CONTROL AND STANDARDS

The specification of fruit products order, 1955 &

prevention of food Adulteration Act. 1954 certification are

mandatory. The canned mushrooms should conform to the

specification laid down in F.P.O. 1955.

The ISO 9000-2000, HACCP, ISO-14000 series &

European norms series standards promise a frame-work which

may guide the entrepreneurs towards fulfillment of a

commitment of quality of products.

ISO series standards are available with the Bureau

of Indian standards from their head quarters office: 9,

Bahadurshah zafar Marg, New Delhi-110002.

PRODUCTION CAPACITY

[PER ANNUM]a) Quantity: 9,00,000 A-2.5 Size cans

b) Value : Rs. 445.50 lakhs

MOTIVE POWER

30 KW


32/60

* POLLUTION CONTROL *

The entrepreneurs are advised to contact concerned

state pollution control Board for detailed guidance in the

matter.

However, the water effluent in this industry isgenerated during cleaning, washing, pre-treatment, blanching

of raw-materials. It is advisable to test the water discharge

as per specification laid down by the Bureau of Indian

Standards. The provision of such treatment has been made in

the profile.


33/60

*ENERGY CONSERVATION*

Although the energy requirement is small yet some

important points for conservation of energy are given below:

1) In electrical installations appropriate electric motors

should be used & properly installed.

2) There should be no leakage of steam from pipe line.


34/60

* FINANCIAL ASPECTS*

INDEX

No. Particular Pg. No.

1.

Fixed Capital details

Land & Building

Machinery & Equipments

Pre-operative Expenses

2.

Working capital details

Personnel

Raw-materials

Utilities

Other Contingent Expenses

3. Sources of finance

4. Interest on Capital

5. Depreciation Details


35/60

*FIXED CAPITAL DETAILS *

1) Land & Building

No. Land & Building Area Rate

(in Rs)

Amt.

(in lakhs)

1. Land 1000 sq.mtr. @250 per

sq. mtr.

2.50

2. Build up area

Factory shed

Raw-material

store

Finished goods

store

Others

700 sq. mtr.

100 sq. mtr.

350 sq. mtr

100 sq. mtr

150 sq. mtr

@ 2500 per

sq. mtr.

17.50

Total 20.00


36/60

2) Machinary & Equipments:

No. Description Qty. Amt

(Rs.in

lakhs)

1. S.S. still Tables size-6 * 3 @ Rs. 13,400 2 0.268

2. Washing machine Rotary Rod washer

equipped with spray arrangement collection

tank etc.

1 0.660

3. Blanching equipments consisting of 3 S.S.

tank each of 380 * 1140 mm complete with

2 trays of size 1015 mm * 350 mm *

880mm & the top folds ot trays 30 mm * 12

mm & S.S. steam coil 25 mm along 3 slides

of tank.

1 0.577

4. S.S. tilting type steam Jacketed kettle

(capacity 50 Gallons)

1 0.536

5. Straight line exhaust box. Exhaust box

tunnel of 3962 mm long with 2 HP electric

motor with reduction gear boxes toaccommodate 4 cans of A-2.5 size at a

time.

1 0.700

6. Canning retorts size-810 * 915 mm & 5 mm

thick with dia. Thermometer, pressure

gauge, safety valve, etc. @ Rs. 49,200

each.

2 0.984


37/60

7. Crates for canning retorts @ Rs. 6600

each

8 0.528

8. Can reformer for reforming flattened can

body

1 0.505

9. Hanger with one change part.

Add1. change part of the above

1

1

0.538

0.140

10. Flage rectifier 1 0.208

11. Semi automatic can seamer

Add1. change part of the above

1

1

0.850

0.14512. Can end embossing machine

Add1. change part for the above

1

1

1.065

0.18013. Water storage tanks (plastic) capacity

15Kl.

1 0.500

14. Concrete tank lined with tiles size

(8 * 8 * 3.5)

1 0.200

15. Steam Boiler (oil fired) capacity 500

kgs./hr.

1 3.000

16. Wide mouthed empty plastic container @

Rs. 150 each-capacity 50 kgs. Each.

100 1.150

17. Cold storage cap-2 tonnes area 1500 cu. Ft. 1 1.500

18. Can tester pneumatically operated with 2

pressure cylinders & water tanks.

1 0.450

19. (a) Miscellaneous equipments such as

buckets, cutting, pealing, knives, weighing

balance Trays, box streping machine etc.

(b) Laboratory equipments such as-weighing

balance, dehydrator etc.

L.S.

L.S.

0.230

1.000


38/60

20. Pollution control equipments discharge of

water-treatment tank.

L.S. 0.350

Total 15.264

Packaging, forwarding C.S.T. & other

charges @ 10%

Erection & electrification charges @

10%

Cost of office equipment including

almirah office furniture, computers

etc.

1.526

1.526

1.000

Total 19.316

3) Pre-Operative expenses

0.750

* Total fixed Investment

(i + ii + iii) = 40.066


39/60

* WORKING CAPITAL DETAILS *

[PER MONTH]

i) Personnel

* Administration *

No. Designation No. Salary Total

(Rs. In

lakhs)

1 Manager 1 8000 0.08

2 Purchase Assistant 1 4000 0.04

3 Salesman 3 4000 0.12

4 Accountant 1 4000 0.04

5 Store keeper/Clerk 1 3000 0.03

6 Computer operator 1 3000 0.03

7 Peon 1 2000 0.02

8 Watchman 2 2000 0.04

Total 0.40


40/60

* TECHNICAL *

No. Designation No. Salary Total

(Rs. In

lakhs)

1 Plant manager 1 8000 0.08

2 Food Technologist 1 7000 0.07

3 Production Supervision 1 4000 0.044 Skilled Workers 2 3000 0.065 Foreman 1 4000 0.04

6 Boiler Attendant 1 3000 0.03

7 Unskilled workers 9 2000 0.188 Sweeper 1 2000 0.02

Total 0.52Grand Total

(Administration +

Technical)

(0.40 + 0.52) 0.92Peark @ 15% 0.138

Total 1.058

(ii) Raw-Material


41/60

No. Particulars Qty. Rate

(in Rs)

Amt

(Rs. In

lakhs)1 Mushroom A grade 55

tonnes

35,000

P.t.

19.25

2 Salt, sugar, citric Acid,

chemicals, preservatives.

L.S. - 0.25

3 A-21/2 Can 75,000 12.00

each

9.00

4. Carton Boxes

Cabels, gums, box.

6250 15.00

each

0.94

5 Scrapping etc. L.S. - 0.85

6 Boxes, Labels etc L.S. - 0.15

Total 30.44


42/60

(iii) *Utilities *

No. Utilities Amt.

(Rs. In

lakhs)

1. Power 30 KW units @ Rs. 3

(30 * 8 *25 * 0.90 * 3)

0.162

2. Fuel (Furnace Oil) 4000 Ltr @ Rs. 8 0.320

3. Water 500 K. Ltr @ Rs. 1/- K.Ltr. 0.005

Total

or Say

0.487

0.50


43/60

(iv) * Other contingent Expenses *

No. Particulars Amt

(Rs. In lakhs)

1. Postage & Stationary 0.1

2. Consumable stores 0.2

3. Repair & Maintenance 0.24. Transport Charges 0.14

5. Advertisement & Publicity 0.10

6. Insurance, Taxes, Telephone Bills etc. 0.08

7. Micellaneous 0.03

Total 0.40

* Total recurring expenses is Rs. 32.390 lakhs

(per month)

( i + ii + iii + iv )

* (v) *Working Capital for 3 months

=Rs. 97.170

* TOTAL CAPITAL INVESTMENT *


44/60

No. Total Capital Investment Amt

(Rs. In lakhs)

(i) Fixed capital 40.066

(ii) Working capital

(For 3 months)

97.170

Total 137.236

* SOURCES OF FINANCE *

No. Particulars Contribution Amt

(Rs. In lakhs)

1. Own Capital 40% 54.892. Loan from bank 60% 82.34

Total 137.23


45/60

* Interest on Capital *

No. Paticulars Rate Amt

(Rs. In lakhs)

1. Owned Capital 9% 4.94

2. Bank loan from ICICI 12% 9.88

Total 14.82

* Depriciation Details *

No. Particulars Amt

(Rs. In lakhs)

(a) Depriciation on machinery & equipment @

10%.

1.526

(b) Depriciation on building @ 5% 0.875

(c) Depriciation on office furniture, fixture

etc. @ 20%

0.200

Total 2.601


46/60

* Financial Analysis *

Index

No. Particular Pg.No.

1. Cost of Production

2. Sales turnover

3. Fixed cost


47/60

1.] * Cost of Production *

No. Cost of Production Amt

(Rs. In lakhs

1. Total recurring expenditure (per year) 388.68

2. Depreciation on machinery & Equipment

@ 10%

1.526

3. Depreciation on Building @ 5% 0.875

4. Depreciation on office furniture, fixture

etc. @ 20%

0.200

5. Interest on total

Investment @ 14%

19.213

Total 410.494


48/60

2.] * Sales turn Over *

No. Item Qty. Rate Amt

(Rs. In

lakhs)

1. Canned Mushrooms

A-2

9,00,000 55 495.00

2. Commission, brokerage &

Marketing expenses

- 10% 49.50

Total 445.50


49/60

3] * Fixed Cost *

No. Fixed Cost Amt

(Rs. In lakhs)

(a) Depriciation on machinery & Equipments 1.526

(b) Depriciation on building 0.875(c) Depriciation on office furniture & fixtures. 0.200

(d) Interest on total Investment 19.213

(e) Insurance 0.360

(f) 40% of salary & wages 4.416

(g) 40% of other contingent expenses 1.584(h) Power charges. 0.360

Total 28.534


50/60

* Profitability analysis *

Profit is the life blood of any business. As

blood is important for like, same profit is important for the

survival of any business.

* Profitability Ratio *

Particular AmtSales

Less : Cost of production [per annum]

495.000

410.494

Earning before interest & Tax

Less : Interest on Capital

84.506

14.82

Profit before tax

Less : Tax (35%)

69.69

24.40

Profit after Tax 45.29

Profitability = Profit x 100

salts

= 45.29 x 100495.00

P = 9.15


51/60

* Break even analysis *

Changing business situation have led to changing

decision situations. B.E. analysis being a simple but effective

tool has been used in cost analysis of single product, multiple

products or composite products.

Break even point is the level of activity at which

there is neither profit nor loss.

= Break even point

= Fixed cost x 100

Fixed cost + Profit

= 28.534 x 100

63.54

= 44.91 % say 45 %


52/60

* Computation of ratios *

The term ratio refers to a numerical or quantities

relationship between 2 terms or variables.

1) Net Profit Ratio :

= Net Profit ( Per year) x 100

Total over (per year)= 35.006 x 100

445.50

= 7.86 %.

2) Rate of Return Ratio:

= Net profit (per year) x 100Total investment

= 35.006 x 100

137.236

= 25.51%.

3) Return on fixed assets := Net profit (per year) x 100

Total fixed assets

= 35.006 x 100

40.006

= 87.50 %


53/60

* Risk Factors *

Risk is another name of business. However, it is also there

is mushroom business. But as we have earlier mentioned that

this business has very bright future because it is a 100% Export

Orienterd unit.

So, in a canned mushroom business there is some risk in a

local market but it is covered by the exporting of canned

mushroom out side India.

Therefore, the level of risk is only for some extent. It is

not affected the unit at a higher level.


54/60

* Benefits for export oriented units

*

Some of the benefits for export oriented units are

mentioned below:

1) The unit may import free of duty capital goods, raw-

materials, components prototypes, office equipments &consumables for office equipments, material handling

equipments etc.

2) An export oriented unit/export processing zone

[EOU/EPZ] unit may export goods manufactured

through an export House/Trading House/Star trading

House.

3) Foreign equity upro 100% is permissible in case of

EOUs & EPZ units.

4) EOU/EPZ units will be eligible for concessional rent for

lease of industrial plot & standard design factory

building sheds.


55/60

5)

EOUs/EPZ units will be exempted from payment ofcorporate income tax for a block of 5 yrs. During the 1st

eight yrs. Of operations.

6) Net foreign exchange earned by an EOU/EPZ unit can

be clabbed, with the net foreign exchange of its

parent/associate company in the domestic tariff area

for the purpose of according export House, Trading

House or star Trading House status later.


56/60

* Future Prospects *

The modern world is fast growing. New innovation of

yesterday is old for today, it is a past & tomorrow is a present.

The following are the future prospects or future plan

of canned mushrooms.

Expansion in existing market & cover the entire world.

Development of various branches all over the world.

To get more profit.


57/60

* LIST OF SUPPLIERS *

Address of machinery & Equipments Suppliers.

1. M/S Somani International Corporation,

1510, maker chamber-v,

Nariman Point,

Mumbai-400021.

2. M/S B.Sen Berry & Company,

65/11, Rohtak Read,

Karol Bagh,

New Delhi,-110005

3. M/S Narang Corporation,

P-25, connaught place,

[Below Madras Hotel],

New Delhi-1110001

4. M/S Raylans Metal works,

Kondivita lane, post box-17426

J.B. nagar, P.O. Andheri(E)

Mumbai 400059


58/60

* Addresses of raw-materials & Packaging material

Suppliers *

CANS

1) M/S. Cowel Can ltd.,

Industrial Area,

Barotiwala, dist. Solan (H.P.)

2) M/S Divecha Glass Industries,

249, Bal Rajeshwar Road,

Office L.B.S Marg, Mulund (w)

3) M/S Poysha Industries Co. Ltd.

Nehru House,

4, Bahadurshah zafar marg,New-Delhi-110002


59/60

CHEMICALS

1) M/S S.B. Mehta & Associates

2-B, Ganga Vihar, 94.

Kazi Sayed, st.

Mumbai-400003

2) M/S Devendra Cottage Industries

Sector -22-4,

Chandigarh.

3) M/S Sesu Trading corporation,

R. No.-2, (4th floor), Sai Chambers,

367-369, Narsi Natha Street,

Mumbai-400009.

* Material Suppliers *

Local Market


60/60

* CONCLUSION *

Future of quality mushroom is very good. Because

now a days people are more conscious about their diet & health.

Mushrooms are full of nutrients, low in calories, high

in proteins, vitamins, minerals & a rich source of folic acid.

It is an alternate choice for weight conscious people

anaemic patients. It has 4.9% protein content which is more

than cow milk, green, vegetable such as beans, etc.

So, mushroom has a very bulky demand not only in a

national market but on a International market too.

Govt. should support these kinds of small scale units

to serve the public with quantitative mushrooms.

Date post:	05-Apr-2018
Category:	Documents
Upload:	ravi-bavaria
View:	224 times
Download:	0 times

cannd mushroom

Documents