Index Sr no Index 1 Introduction 2 Project at a glance 3 Profile of promoters 4 Justification of location 5 Product details 6 Raw materials and its sources 7 Details of suppliers 8 Manufacturing process 9 Staff and labour 10 Administration 11 Financial details 12 Break even point 13 Fixed assets 14 Cost of production and details of sales 15 Profitability and ratio analysis 16 Market analysis 17 Competitors 18 Risk factors 19 Future prospects 20 Bibliography
Transcript
Index
Sr no Index1 Introduction2 Project at a glance3 Profile of promoters4 Justification of location5 Product details6 Raw materials and its sources7 Details of suppliers8 Manufacturing process9 Staff and labour10 Administration11 Financial details12 Break even point13 Fixed assets14 Cost of production and details of sales15 Profitability and ratio analysis16 Market analysis17 Competitors18 Risk factors19 Future prospects20 Bibliography
Introduction
For the success in anything it is necessary to have the knowledge of your subject and it is good to develop it by the practically.
To develop the skill of an entrepreneur, a subject called “ENTREPRENEURESHIP” has been introduced in T.Y.B.B.A.’S syllabus. Management and development of small scale industries is introduced in this subject. In this subject each student can get practical knowledge as an entrepreneur y preparing the product project report.
The presented product which is “KESHAN HAIR OIL” is also an ayurvedic product. The ingredients used in this oil are ayurvedic and having various benifites with assurance of obvious in quality and growth of hair.
Project at glance
1) Name of the firm : D J Enterprise2) Name of the product : KESHAN HAIR OIL3) Registered office : GIDC Estate,
Metoda Rajkot
4) Location of factory : D J Firm GIDC Estate, Plot no 9556, Metoda, Taluka – lodhika, Dist- Rajkot GUJARAT
5) Type of firm : partnership 6) Name o the promoters : miss Dhara d. vora
: miss Jalpa h. sheth7) Products : Hair oil8) Size of unit : small scale unit9) Size of building : 75250 sq ft10)Size of land : 1610 sq ft11)Ssi reg. no : applied for12)Subsidiary register no : applied for13)Cost of project : 1,23,58,00014)Sources of finance : 70% owned
: 30% borrowed15)Roi : 13%16)Coc : 6.9%
Profile of promoters
Here is two partners for the business. Their bio-data are as below.
PARTNERS-1
NAME : MISS DHARA D. VORA
AGE : 20 YEARS
ADDRESS : “SHREE” Kalawad raod, Near sankalp hotel, Rajkot
ADDRESS : “GAYATRI” Near P.D. malaviya collage, Ram nagar, Rajkot.
EDUCATIONA QUALIFICATION : M.B.A.(with H.R.M.)
EXPERIENCE : 3 years
RESPONSIBLITITY : Personal dept. and production dept.
FIANANCIAL CONTRIUTION : 40%
Justification of location
Location of the unit means to locate your industry at particular place. When a new industry is going to establish or when a unit is expanding its business, the decision to be taken is of the location of the plant. Success or failure of the company depends upon this important factor.
There are various factors attecting while deciding about the perfect location such as;
- LAND- LABOUR SUPPLY- POWER SUPPLY- TRANSPORTATION FACILITY- OTHER FACTORS
And the D.J. enterprise has concentrate upon this factor line,
LAND:-
Land is vary important and first factor of production without land, we can’t able to production of any product and with this context D.J. Enterprise has got it at lower cost on account of its location at GIDC Estate, more it also proved the suitable atmosphere.
LABOUR SUPPLY:-
In this context, it is beneficial for any firm to get the labour easily and at cheaper rate, so that they can justify here, D.J. Firm is situated in GIDC area where there is no any shortage of cheaper labour and can easily available.
POWER SUPPLY:-
At initial stage of any industry they try to reduce their expenditure more. So, that keep an eye on all the factors and one of it is power or electricity. Because it is that factor which they needed most, without power their machines are not work so, to reduce the expenditure on power more
they try to locate at industrial area where it is easily available D.J. Enterprise get it easily and cheaper rate ecause GEB provided them power with this facility.
TRANSPORTATION FACILITY:-
If the cost of production is increase than profit may decrease because of more expense in production. And if it is not done at a time than it creates problems for the firm D.J. Enterprise is situated at high ways and as it is in industrial estate, it gets all the necessary facility at low cost.
OTHER FACTOR:-
There are many other factors such as, telecom facility, nearness of market, government facilities etc. D.J. Enterprise has try its best to prove for the perfect location.
LOCATION:- D.J. ENTERPRISEGIDC ESTATE,PLOT NO 9556METODA RAJKOT.
Product details
Here the presented product I,e. “ KESHAN HAIR OIL” is an ayurvedic products with quality.
It is now not unknown that ayurvedic products are gaining much & much popularity due to wide of its products development and wide selling of it. Now a days almost each and every people become health conscious and most of the ladies like look beautiful and wide range of beauty matters are available in ayarvedic and hair, it is only thing which contributes major changes in the looks of a person people are becoming more and more conscious about hair
“KEAHAN” – An ayurvedic hair oil involved various ayurvedic ingredients with various merits and assurance of obvious change in quality and growth of hair. It may together constitute the higher demand of product.
Benefits and main ingredients of it-
It includes ayurvedic ingredients like, amala, bawcha, brahmi, hirda, baheda, jatamansi and their benefits are as follows:
- RASASRAM PHARMACYBEHIND, BHUVNESHWAR PITH,OPP, POST OFFICE,GONDAL-360311
Details of suppliers
1. ABC medical storeyagnik road,near, mobile express,Rajkot
2. NITYADARHAN medical storesnear, udhyog nagar,gandhimagar(Gujarat)
3. AVADH medical storesvilas nagar-5worliMumbai-400001
Manufacturing process
For the quantity of 100mlContains are,
Extracts of amala 5gmBawchi 5gmBrahmi 5gmHirda 5gmBajeda 5gmJatamansi 5gm
Base – coconut oil- 100%
Process-
Step-1 mixture of various ingredients-
This is the first step, in this step all ingredient like amala, bawchi, brahmi, hirda, baheda and jatamansi are mixed together and kept in cloth bag tightly tied. This cloth bag must be very thin.
Step-2 Heating
Now, after the mix up the cloth bag is immersed in the oil. All the ingredients are tied down properly till they get properly mixed in the oil, then heat is given. Entire mixture is heated until all the ingredients mixed in oil.
Step-3 purification
After the mixture gets heated and mixed properly the final product is obtained by purifying it with help of specific machinery and which is specifically prepared for purification only,
Step-4 Final output
After the purification process, finally oil is gained. So the final output of hair oil is produced.
Step-5 Bottling
It becomes quite necessary and obvious that such kind of liquid are bottled in 100ml
Bottling process-
1. acquiring bottles-
The very first aspect to be considered is to get bottles. As being a partnership firm, due to limited finance the firm gets the bottles from “SUN-N-SHADE GLASSWARE”. Thus, we import bottles for its packing.
2. Filling the bottles
In this stage bottle are filling up with oil through filling machine in 100ml bottles.
Step-6 Packaging
It is quite known that the chief attraction of any product is a packaging. Any one gets attracted to the products, if the packaging is good. Moreover the life of the product & quantity of the product is maintained through packaging.
Packaging of our firm is very attractive. After bottling, the bottles are packed in boxes with polyphone cover, size, shape, materials, colour of packaging is very attractive.
Step-7 labeling
The label may be a simple tag attached to the product or an elaborately designed graphic that is part of the package. The label carries full information about product and the firm in short form.
A label of our firm describe “who made it, where it was made, when it was made, what it contains, how it is to be used and how to use it safely.
Staff and labour
Staff are expected to give odvice, provide service, maintain contain and perform administrative task.
In our firm 9 employees are in top, middle level & 29 employees are in lower level. Total no of employee are 38.
Procedure DaysPreparation of project 30 daysSelection of site 15 daysRegistration of SSI 20 daysAvailability of finance 15 daysSelection of machine 15 daysProcurement of machine 15 daysRecruitment 08 days
Financial details
A) COST SHEETB) OPERATING STATEMENTC) TRADING ACCOUNTD) PROFIT & LOSS ACCOUNTE) BALANCE SHEET
A) COST SHEERT
Project cost sheet of kasham hair oil partner’s firm for the year 2007-2008
Particulars Amt. Rs. Amt. Rs. Amt.(P.Unit.)
Opening stock of raw materials+ purchase of raw materials- closing stock of raw materialscost of materials+ direct wages direct expenses(A) Prime Cost+ factory overheadssalary of employeesrepairs & maintenancedep. On plant & machinery(20%)dep. On building (10%)(B) factory cost+ administrative overheadsinterest on ownershipsalarytelephone & postageprinting & stationarylegal expensesinsuranceelectricity billsspares & stores
-37,90,800
9,36,0007,27,596
14,97,60050,000
2,31,0001,44,500
5,19,0366,12,00045,00030,00024,000
84,00072,000
--
-37,90,800-16,63,59654,54,396
19,23,10073,77,496
--
-16.20-7.1123.31
8.2231.53
misc. expenses dep. On computerdep. On furniture
(c) administrative cost+ op. stock of finished goods
- cl. Stock of finished goods
cost of production of goods sold(D)advertising & distributions expensescommission to salesmandep. On delivery vancost of sales(E) sale of finished goodsnet profit
36,00045,00060,000
--
1,20,00063,6001,23,000
15,22,036
88,99,532
88,99,532
3,06,60092,06,13299,00,0006,93,868
6.50
38.03
38.03
1.3139.3442.312.97
B. Operating statement
Projected operating statement of Kesham Hair Oil for the year 2007-08Particulars Rs. Rs.
Sales- cost of operationraw materialsdirect wages skilled unskilleddirect expensesutilities+ opening stock of raw materials opening stock of finished goods
- closing stock of raw materialsclosing stock of finished goods
Total cost of operation (b)Gross profit (a-b)indirect expensestotal factory costtotal office & administration costtotal selling & distribution costpreliminary expensesEBIT = GP – Total indirect exp
- interest on borrowed loanEBT
- TAX @ 35%EAT (NET PROFIT)
37.90.8007.20.0002.16.0009.36.0007.27.596----
19.23.10015.22.0363.06.60080.000
99,00,000
54.54.396
-54.54.39644.45.604
38.31.7366.13.8683.33.6662.80.20298.0701.82.132
TRADING ACCOUNT
Project trading account of kesham hair oil’s partner’s for the year 2007-08Particulars Rs. Particulars Rs.
To , opening stockTo, labour expenseTo, raw-material expensesTo, utilitiesTo, gross profit
-9,36,000
37,90,8007,27,59644,45,604
By, sales 99,00,000
99,00,000 99,00,000
PROFIT & LOSS ACCOUNT
Projected profit & loss account of hairoil partners for the Particulars Rs. Particulars Rs.
To, salaryTo, telephone exp.To, printing & stationeryTo, legal expensesTo, mis. ExpensesTo, traveling & transportationTo, income taxTo, interest on borrowed loanTo, depreciationP & M – 2.31.000L & B – 1.44.500Comp. - 45.000Furniture. 60.000To, preliminary exp.To , advertising exp.To, dep. Of delivery van
Net profit
21.09.60040.00030.00024.00036.000
80.000244.230
3.33.666
4.80.5008.000
1.20.0001.23.000
8.16.608
By, gross profit 44.45.604
44.45.604 44.45.604
BALANCE SHEETProjected balance sheet of hair oil partner’s for the year 2007-08
Now a days ayurvedic products are more and more produced and sale in the market. People keep faith on ayurvedic products.
Now in the market there are many ayurvedic hair oil are available such as Keshposha, Shyamla, Pavitra, Mahabhringraj, Sesa etc.
Market analysis means, if you produce a product and put into market for sale that types of features or adding innovative features in your product, so that consumer market can be attracted.
Before, few years ago there was not famous market for ayurvedic hair oil but now people become heath conscious and that’s why market of such hair oil is increases.
Before, 5yrs. Only 15% to 20% people were using ayurvedic products namely hair oils, but at present 40% to 45% people are using it and in coming 5 yrs it will definitely increase up to 80% to 85% approximately. So we can say that demanol for hair oil will increases day by day.
COMPETITORS
Generally, hair oil is the consumer goods and used it regularly. So its availability is very cheap and normal. But it if we look at its main competitors then it is,
Shlimala Keshposa Sesa Mahabhringraj Pavitra etc.
RISK FACTORS
- As is newly established, there could be harassment by other unit.
- The unit must be prepared for the high level competitions.- The unit must be prepared for the price decreasing- The unit should concentrate on the consumer demand and price
factors.- The unit can complete easily with small unit but also should
ready for the competition with big unit like Dabur, Mahabhringraj hair oil, Sesa, Pavitra etc.
FUTURE PROSPECTS
Ayurvedic product either in form of medicines or in form of lotion & oils today it is achieved much popularity. More & more people are getting known with the benefite of ayurvedic such items is to increase day to day. Thus, the production in anticipation of demand is facilitated.
As far as ‘Kesham Hair oil’ is concerned its demand is just whooping every day in lot. As it has advantages again as compared to other hair oil it is outstanding as it has is a great future.
BIBLIOGRAPHY
Production and operating management.- Chunawala & Patel Financial Management- king’s
