JISE PINE KO MAN KARE

DECLARETION

I, the undersigned Mr. RAKESH S SAVANIYA, a student of T.Y.BBA hereby declare that the project work presented in this report is my own work and has been carried out under the supervision and guidance of Prof. NAMITA TALSANIA of Shree Gyanyagna Collage of Science and Management Rajkot. The work has not been previously submitted to any other university or institution for any examination.

Date Place

: :

Signature

(Rakesh S Savaniya)
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PREFACE
Being a student of TYBBA I am extremely happy to submit this project report on small scale industry under the prescribed syllabus of Saurashtra University for particularly introducing a subject Entrepreneurship entrepreneurship is management of SSI with a view to create and Develop such skill and attitude among the student in practical and professional education faculty. The goal or object of this project report is to make student learn about various factor that should be a kept in mind before starting up and industry in other words, it is purely entrepreneurship development and training for establishment of SSI. The contribution of SSI is 45% in the economic growth of the country so, it becomes essential to study the management and working of SSIs as a student of management.

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ACKNOWLEDAGEMENT
It is really the matter of a great pleasure for me to under take and presents this creative and practical work, a product project report of TYBBA on Pasteurized milk. This report has been prepared by keep in mind various aspect relating to financial capacity of the plant which is to be a established, the fast growth and development in the field of milk industry. I grab the opportunity to express my sincere thanks to Prof. NAMITA TALSANIA who has guided me in preparing this report. I would also like to express my gratitude to SISI and all those who have assisted me in the preparation project. Date Place : : Signature (Rakesh S Savaniya)
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INDEX
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Particulars Pg.No. Introduction 6 Project at a glance 7 Implementation of a schedule 8 Management set up (Partners Detail) 9 Organization structure 11 Justification of location 12 Product details 15 Raw material details 17 Machinery requirements 18 Basis and presumption 19 Production capacity (schedule) 20 Human resource required 21 Financial Details 22 Profitability Analysis 30 Break-Even Analysis 31 Ratio Analysis 33 Risk Factor 35 Future Prospect 36 Conclusion 37 Address of Machinery and Equipments 38 Suppliers

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INTRIDUCTION
The industrial structure of India can be classified into three main groups; they are capital goods,consumer goods & small scale sectors. The small scale industries can further be subdivided into village or cottage industry & modern small scale industry. The village / cottage industries produce traditional commodities like handloom clothes & other necessary products, etc. The modern small scale industries on the other hand produce non-traditional commodities like machine tools, radio sets, automobiles parts, components, etc. According to the industrial policy paper of 1956, SSI ensures more equitable distribution of national income & they facilitate an effective mobilization of resources, capital & skills. Some of the problems that unplanned urbanization tends to create will be avoided by the establishment of small centers of industrial production all over the country. To overcome such problems, we now a days find some firms co-existing with the large firms in the business wold.
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PROJECT AT GLANCE
Name of The Unit : Product : Address for Communication : Milky Way SWET Radhe-krishna Rameshwar Park Raiya Road Rajkot GUJARAT (INDIA) Partnership Firm Application has already been made. Jamnagar Road Near Madhapar Chokdi Rajkot Rakesh S Savaniya Rajesh L Savaniya

Form of Organization SSI Registration Number Location of The Unit

: : :

Partners Name Cost of The Project Plant Installed Capacity RAKESH SAVANIYA RAJESH SAVANIYA

: : :

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Subsidy Registration No. : Application has already been made.

IMPLEMENTATION SCHEDULE
The Implementation schedule will be as follow: Sr.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Particular Selection of site Feasibility report Registration with Arrangement of Finance Procurement of Machinery And Equipment Recruitment of Labour Arrangment of Raw material Plant Creation and Electrification Selection of Management Channels Miscellaneous (such as Power and Wastes, Pollution Board clearance) Time Taken 1 2 2 1 Month Month Month Month Month

Month Month Month 2 Month 1 Month 12 Month

MANAGEMENT SETUP (PARTNERS DETAIL)

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There are mainly two partners:

(A) RAKESH S SAVANIYA (B) RAJESH L SAVANIYA

(A) Name Age Religion : RAKESH S SAVANIYA : 20 years : Hindu Rameshwar Park Raiya Road Rajkot 360 007 Financial Contribution Experience Responsibility Education Shears in profit (B) Name Age RAKESH SAVANIYA RAJESH SAVANIYA JISE PINE KO MAN KARE : 50% : : Marketing Dept. Mng. : Undergoing BBA from Sau. University. ; 50% : RAJESH L SAVANIYA : 21 years
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Address for Communication : Radhe-krishna

JISE PINE KO MAN KARE

Religion : Hindu Rameshwar Park Raiya Road Rajkot - 360 007 Financial Contribution Experience : 50% : Article ship undergoing the firm of MADHUSOODAN KAKKAD (FCA) Responsibility Education : Financing Dept. Mng. : Undergoing PCC-CA from Institute of Chartered Accountants of India. Address for Communication : Radhe-krishna

Shears in profit

: 50%

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FUTURE ORGANISATION STRUCTURE

General Manager

Asst. General Manager

Production Manager

R&D Manager

Accounts & Finance Mng.

Personal & Addm.Mng

Marketing Manager

Dispatch Offifer

R&D Officer

Accounts & Finance Officer

Personal & Adm. Officer

Marketing. Officer

Procurement Prod. Mng.

R&D Executives

Chief Accountants

Senior Officer

Mktg. Executives

Peon

Peon

Asst. Accountants

Clerk

Peon
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JUSTIFICATION OF LOCATION
Location is the prime factor which has to be considering for starting a new business. The location should be decided by considering all factors and making independent analysis of each variable separately through cost benefit analysis and the location should either be near to the market (i.e. customers) or where the raw material is easily available and in adequate quantity. Raw Materials:The major components or major input which is and inevitable part of any production process is, Raw Material. Raw Material at proper time, at a reasonable cost, and in right quantity, in right quality directly affects the price of the final product. In case of this industry the basic raw material is milk which are available from the surrounding areas of the Rajkot. Labour:Man power inputs i.e. labour holds important after the raw material. Cheaper and efficient labour availability enriches the firm and thus, it is very crucial in nature. In this case technically skilled and unskilled labour required which is easily available from the near by area.

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Water:The proposed product is highly depending up on water supply and it is easily available from our own source and water supply by Municipal Corporation. Market:The main aim of every product is to get potential market and proximity to market is also one of the most considerable variables, due consideration to the variables will add to the prosperity of the firm and ultimately will help in attaining customers satisfaction. The market for the milk is definitely increasing in because today every customer is understand the importance of Pasteurized Transportation:Speedy transport facilities are needed for the regular and timely supply of raw material and finished goods. It should be done keeping in mind the requirements and its nature. As far as our product is concerned, we easily get road transport facilities. We can easily provide our product nearest cities.
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Miscellaneous Factors:We have selected our location after taking into account the following factors. a)Availability of infrastructural facility. b)Availability of Banks or Financial Institution. c)Availability of Bodies such as Hospitals / Dispensaries, Post Office, etc. enjoyed by the communities.

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PRODUCT DETAIS
Production process: The firm provides milk collection facilities in each Village. The milk is promptly transported twice a day i.e. morning and evening to nearest Chilling Center. At present 81 Milk Routes are in operation. The milk is chilled to 3 - 4 C and is then transported to Dairy Plant at Rajkot in insulated milk tanks. is an important Co-operative democratic institution in Rajkot, latest technological machines & equipments. Milk again tested before being packed. Pouch filling for the end users. Packed milk stored in wellmaintained cold stA machine milking the cow. Milk Producers' Cooperative LTD collects the milk from all the villages. The collected milk is tested against the set standards. That insures quality of milk being received from the root level. The received milk is sold locally as well as transported to the dairy for the further processing. The milk is tested in dairy lab. No compromises with the quality of milk being received. The qualified milk is received at Raw Milk Receiving Dock at Dairy. Cleanliness is always the top priority at any stage of the milk cycle. Can cleaning process. Milk is pasteurized, clarified, and standardized using lorage. Milk dispatched for the sales in the market.

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Product Properties: Fat Colastrol Carotin Vitamin A.D.E.K Lactos Product User: This product is a food product as well as fast moving consumer good so all mankind are the user of our product in their day to day life.

RAW MATERIAL DETAILS

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The basic raw material of this product is milk. The raw material is available from near by area of Rajkot. In our contact there are 450 MADALI in nearest villages to get easily lot of milk as our raw material. The name of some villages is as under: a)Padadhari b)Hadmatiya c)Kashturba Dham d)Raj Sangh e)Dhamliya f)Bhandaliya g)Bhupgadh h)Baldan i)And many more

MACHINERY REQUIREMENT
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The manufacturing of this product requires the following types of machinery. Particulars Pasteurized Plant Separator Pre-pack Machine Cane Washer Crate Washer C.I.P. System (Cleaning In Pipe) Churn Cattle Lactometer Filling Machine No. of Units 2 1 1 1 1 1 2 1 1 2

BASIS & PRESUMPTION

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The project is based on single shift basis &will have 365 working days in a year. The cost of machinery & equipment, materials so indicated refer to a particular time period & that to the purchased of that at that time of perpetration of project. Depreciation on building & machinery, equipments, office furniture & fixture have been taken at 10%, 15%, 15% respectively. To be charred.

PRODUCTION CAPACITY & SCHEDULE

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The production capacity of this established plat will be 5000 pouch per day. The schedule for production would be as follows.

There would be a single shift i.e. 8 a.m. to 8 p.m. (Including lunch break) The whole production process would be carried out simultaneously and the post production will also be speedily

HUMAN RESOURCE DETAIL

The human resources in any organization consist of staff & labour. The staff constitutes managerial personnel, administration personnel. Where as the labour constitutes of
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permanent, temporary, skilled & unskilled labour. All this depends upon the nature of the product. The production & admin. Of product will require.

Managerial & Admin. Personnel. About:20 Persons Labour (all kinds) About:30 persons

FINANCIAL DETAIL
Fixed Capital Details:
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JISE PINE KO MAN KARE Land and Building

Sr. No. 1. 2. 3. Particulars Land Building Total Sq. Ft. 1800 1500 price 600 1000 Total value (Rs.) 10,80,000 15,00,000 25,80,000

Machinery & Equipment:

Sr No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Particular Pasteurized Plant Separator Pre-pack Machine Cane Washer Crate Washer C.I.P. System (Cleaning In Pipe) Churn Cattle Lactometer Filling Machine Total No. of Units Reqd 2 1 1 1 1 1 2 1 1 2 Price Per Unit 5,00,000 3,00,000 2,00,000 3,50,000 1,00,000 5,55,000 3,24,000 3,20,000 2,00,000 1,50,000 Total value 10,00,000 3,00,000 2,00,000 3,50,000 1,00,000 5,55,000 6,48,000 3,20,000 2,00,000 3,00,000 39,73,000 Amt. 25,80,000 39,73,000 2,00,000
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Total Fixed Cost:

Sr. No. 1. 2. 3. RAKESH SAVANIYA RAJESH SAVANIYA JISE PINE KO MAN KARE Particular Land & Building Machinery & Equipment Furnituer

JISE PINE KO MAN KARE

TFC 67,53,000

Raw Materials (Per month)

Fate RAKESH SAVANIYA RAJESH SAVANIYA Rs.1/2 Litter

Working Capital Requirement

Qty. Reqd Total Amt.
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3.1 Total 4 1,50,000 6,00,000 6,00,000

Personnel Salary and Wages

Sr. No. 1. 2. 4. 5. 6. 7. 8. Particulars Manager Asst.Gen Manager Dept.Maneger Officers(Dept) Storekeeper Peon Sales people Total Amount Paid 10,000 7,000 5,000 4,000 3,000 2,000 2,500 No of emp. 1 1 5 5 1 3 4 Amt. 10,000 7,000 25,000 20,000 3,000 6,000 10,000 81,000

Utilities (Per Month)

Electricity Water Total 8,000 6,000 14,000

Other Exp. (Per Month)

Particulars Postage and Stationery Transportation Exp. Insurance Repairs and Maintenance RAKESH SAVANIYA RAJESH SAVANIYA JISE PINE KO MAN KARE 1,000 20,000 5,000 3,000
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Sales Exp. Advertisement Exp. Other Exp Total 2,500 25,000 3,000 59,500

Total Working Capital Requirement (Per Month)

Raw Materials Personnel Salary And Wages Utilities Other Exp. Total 6,00,000 81,000 14,000 59,500 7,54,500

Total working Capital Requirement (Per 3 month)

perticuler Raw Materials (6,00,000 X 3) Personnel Salary And Wages (81,000 X 3) Utilities (14,000 X 3 ) Other Exp (59, 500 X 3) Total Amt. 18,00,000 2,43,000 42,000 1,78,500 22,63,500

Total Capital Investment

Total Fixed Capital Total WC Requirement Total Cost of Project 67,53,000 22,63,500 90,16,500

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RAKESH SAVANIYA RAJESH SAVANIYA JISE PINE KO MAN KARE

JISE PINE KO MAN KARE SOURCES OF FINANCE

Sr Particulas No. 1 2 3 4 Land Machinery Furnituer Total working capital Total Owed (35%) 9,03,000 13,90,550 70,000 7,92,225 ) H.D.FC (25% 6,45,000 9,93,250 50,000 5,65,875 GSFC/ Borrowed capital (40%) 10,32,000 15,89,200 80,000 9,05,400 Total

25,80,000 39,73,000 2,00,000 22,63,500

22,93,550

22,54,125

36,06,600

90,16,500

INTREST ON CAPITAL
Sr. No. 1. 2. 3. 4. Particular Owned Capital Interest Bank Loan @ 13% Other Loan @ 13% Total @10% Amt. 2,29,355 2,93,036 3,90,468 9,12,859

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RAKESH SAVANIYA RAJESH SAVANIYA JISE PINE KO MAN KARE

JISE PINE KO MAN KARE Computation of Depreciation

Sr. No. 1. 2. 3. 4. Particular Building @ 10% Machinery and Equipment @ 15% Furniture @ 15% Total Amt. 2,58,000 5,95,950 30,000 8,83,950

Total cost of production

Sr. No. 1. 2. 3. 4. 5. Particular Total requirement of exp. Depreciation on building @ 10% Depreciation on mach. & equip. @ 15% Interest on total capital Total Amt. 90,54,000 2,58,000 5,95,950 9,12,859 1,08,20,809

Computation of sales and expected profit

Sales (estimated) Total cost of production Expected annual profit 1,44,00,000 1,08,20,809 35,79,191

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PROFITABILITY ANALYSIS
Particular Sales value (18,00,000 X 8) Less: cost of production Earning Before Interest & Tax Less: Interest on Capital Amount 1,44,00,000 1,08,20,809 35,79,191 9,12,859 26,66,332 9,33,216 17,33,115

Earning Before Tax Less: Income Tax @ 35% Net Profit

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BREAK EVEN ANALYSIS

He narrow interpretation of the term break even only refers to system of determination of that level of activity, where total equals to total sales. It can also be said to be a stage where the cost are covered and the co. is in such a position, neither making profit, not less. The broader interpretation refers to that system of analysis, which determines the probable profit at any level of activity. The BEP of this project for which we would required the total fixed cost.

Total fixed cost (per year) Sr.No. Particular Amount 1. Interest on owned and borrowed capital 9,12,859 2. 40%of wages and salary 32,400 3. 40% of other contingent exp. 23,800 4. Depreciation of building 2,58,000 5. Depreciation on mach. And euip. 5,95,950 6. Depreciation on furniture 30,000 7. Total 18,53,009

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BREAK EVEN POINT

BEP = FC FC + PAT = X 100 X 100

18,53,009 18,53,009 + 17,33,115

= 51.68%

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RATIO ANALYSIS
1. Return on investment ratio ROI = PROFIT AFTER TAX X 100 TOTAL CAPITAL INVT.

17,33,115 1X 100 90,16,500 19.22%

2.

Return on Fixed Assets ratio ROFA = PROFIT BEFOR TAX X 100 TOTAL FIXED ASSETS 26,66,332 67,53,000 39.48% X 100

= =

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3.

Net Profit Ratio NPR = NET PROFIT SALES 17,33,115 1,44,00,000 X 100

X 100

= 12.03 %

4.

Gross Profit Ratio GPR = GROSS PROFIT SALES 35,79,191 1,44,00,000 24.85% X 100

= =

X 100

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RISK FACTOR
Risk is the biggest threat which every entrepreneur has to look upon very seriously in order to safeguard the investment and thereby earn profit. As far as this project concerned owing to the current situation, there have started emerging some competitors which are providing to be threat for future there fore, it is very important to notice the risk factor in the environment in which the business works. It is again very important to notice the degree of competition is the existing market so as to make planning for future. This product as in the initial stage does not face high competition therefore the risk factor for competition and market share is reduce.

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FUTURE PROSPECT
Owing to the demand and sales of this product it seems that this product has a good demand in future because our milk is pasteurized and as today customers aware about the importance / benefits of pasteurized milk in compare to normal milk. Today in our society 90% of people are purchasing non pasteurized / normal milk and thats why we have open market for our product. In future people will take turn toward our product after knowing benefits of our product.

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COCLUSION
This product, has such qualities and standard which build the power to explore new market boundaries. Proper planning, management and advertisement will defiantly up bring this product.

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ADDRESS OF MACHINERY SUPPLIERS

1. M/s. Savaniya Brothers Engg. Works Pvt. Ltd Chirag Building, Baroda Pristage, Matavadi Road, Varachha, Surat. Shri Guygon Forges Ltd. 272736, Estate, Moti Baug, Delhi. M/s. Shankar Machine Tools Ltd. 18/11 Court Area, RANA Buildings, Nr. Factory Area, Surendranagar.

2.

3.

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