MATERIALS INPUTS AND UTILITY:

Material inputs means raw material required for the project. An important part of technical analysis is knowing details about the raw material and utilities that is required in the project. The properties, qualities and supply of raw material and utilities must be clearly defined. It is necessary to know about the raw materials and utilities so that there may not be any problem in the supply of it in future. Materials inputs and utilities may be classified in the following categories: a. Raw material b. Utilities.

et us try to understand both the abo!e inputs in detail" A. RAW MATERIAL #aw material processed on semi processed may be classified into $ types: ii. Agricultural products. iii. Mineral products. i!. %orest products. !. Marine products. The entrepreneur who wants to start the project must study the abo!e types of raw materials in detail before starting the project. et us try to study these raw materials in detail as below" i. Agricultural pr !ucts: &ertain projects require agriculture products as their raw material. %or e'ample, (A A)I *A%+#, require -otatoes as their raw material. .ence such types of companies must try to analyse the agricultural raw material in detail. In studying the details about the agricultural products, the quality of it must be first e'amined. Then an analysis must be made about the quantity a!ailable /currently and future0 %ollowing questions must be asked while analy1ing the agricultural products for the project *hat is the present production le!el of the agricultural product required for the project2 *hat is the present area under culti!ation2 /means area in which the product is grown0 *hat is the yield per area2 /yield means production0 *hat shall be the increase in the area of culti!ation in future2 *hat shall be the increase in yield per area in future2 Mi"eral pr !ucts: &ertain companies require mineral products as their raw material. %or e'ample, TATA ,T++ company require I#34 3#+ as their raw material. .ence such types of companies must try to analyse the agricultural raw material in detail. In studying the details about the mineral raw materials, information is required on the quantity of mineral deposit a!ailable in the soil Information is also required about the qualities of such minerals. The study should also pro!ide details about the location, si1e and depth of deposits of minerals. In addition information is also required about the impurities in such types of minerals. -hysical, chemical and other properties of minerals must also be analysed. # rest pr !ucts:

ii. iii.

 i$.

&ertain companies require forest products as their raw material. %or e'ample, %5#4IT5#+ manufacturing companies require *336 as their raw material. *ood, #ubber etc are some of the forest products which are required by the companies as raw materials. .ence such types of companies must try to analyse the forest products in detail. In studying the details about the forest product, ,econdary source of data is often required from go!ernment sources. Information is also required about the a!ailability of such types of products in different parts of India. %uture a!ailability and go!ernmental controls regarding forest products must be criticially analysed before starting the product Mari"e pr !ucts: &ertain companies require forest products as their raw material. %or e'ample, 7+M, and )+*+ +#8 types of companies require oyesters as their raw material. %ish, oysters etc are some of the marine products which are required by the companies as raw materials. .ence such types of companies must try to analyse the forest products in detail. In studying the details about the marine product, ,econdary source of data is often required from go!ernment sources. Information is also required about the a!ailability of such types of products in different parts of sea 9 ocean. %uture a!ailability, pollution in sea, cost of collection of such marine products etc information is required before starting the project ,ome companies require fish and other sea animals for producing medicines.

%. UTILITIES: &ompanies also require utilities for their project. 5tilities required for the project are power, water, steam, fuel etc. ,ince the successful operation of a project depends on proper a!ailability of utilities. In analy1ing the utilities required for the project, following questions must be answered" *hat quantities are required in the project2 *hat would be future a!ailability in case of shortage of utilities2 *hat is the source of supply2 *hat measures may be taken to increase supplies if it is required in more quantity in future2 .ence technical analysis of project includes analy1ing raw material and utilities in detail as gi!en abo!e.