new p.p.r
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PPR REPORTTRANSCRIPT
Preface
For socio economic growth and balanced structural
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 and appropriate technology is also ensuring by
the small-scale industries.
In the growth rate of the country, the small scale industries
give vital contribution. Therefore it is essential to understand
management and working of small-scale industries as a student of
business administration.
The subject of “Entrepreneurship and management of Small
Business” has been included by Saurashtra University in Third Year
B.B.A. So I have prepared this project report on one of the small-
scale industries product. That is paper dish and napkin.
Acknowledgement
This is my great pleasure to submit this Product Project
Report. I am thankful to all the persons who have helped me for the
preparation of this project report.
First of all I would like to thank Dr. Mita B. Vora who had
guide me for the preparation of Product Project Report.
I am also thankful to all those who had helped me in one or
another way during preparation and computerization of this Project
Report.
Place : Rajkot (I/C Director)
Academic year : 2005 – 06 __________________
Mr. John Mathew
DeclarationI undersigned, Jagdish V. Khimsuriya a student of Third Year
B.B.A. at T.N. Rao College of I.T. & Management, hereby declare
that the project work presented in this report is my own work and
the report has been prepared under the guidance and supervision
of our co-operative Dr. Mita B. Vora.
This work had not been submitted before this to any other
university with an examination purpose.
Place : Rajkot _________________
Academic year: 2005 – 06 Sign of the Student
Project Profile
Name of the Unit : Blue Sea Paper Industry
Brand Name : Dolphin Paper Dish & Napkin
Address of Unit : Metoda G.I.D.C.
Form of the Unit : Partnership Firm
Size of Organization : Small Scale Industry
SSI Registration No. : Application has been made
Accounting year : 2005 – 06
Business carried out by Unit : Manufacturing and selling of Paper
Dish & Napkin
Utilization Capacity of Plant : 24000000 pcs (60% capacity)
Installed Capacity of Plant : 40000000 pcs
Cost of Project : 1759300
Implementation Schedule : The average time of
Implementation of the Project is
Estimated 71/2 months.
Bio-data of partners
PARTNER – 1: -
Name & Address : Jagdish V. Khimsuriya
“Aai Shree Khodiyar Bhuvan”,
New Thorala, Ramnagar – 3,
Rajkot – 360003.
Age : 20 Years
Education : B.B.A.
Qualification : Management (Final Year continue)
Role of Unit : Managerial and Administrative Fun-
ction
Experience : Nil
Contribution : 60%
PARTNER – 2: -
Name & Address : Amit Goswami
‘Kuber’
9 Lati Plot,
Rajkot - 360003
Age : 28 years
Education : Diploma in Mechanical Engineering
Role of Unit : Undertakes the Supervision of pro-
duction and quality control of the
product.
Experience : Has got the experience of 5 years
in technical aspects of production
of the paper dish & Napkin in the
Hiravati Paper Industry Ltd.
Contribution : 40%
Introduction to the product
India is a very large country and the Indian economy is a
developing economy at present. So each and every industry has
great opportunities to achieve higher and higher growth. Moreover,
our country is very much populated so there is good market
available for producers for their product. That is why the many
overseas companies come to India to get the benefit of large
number of customers available.
Present the lifestyle of the most of the people is so fast that
they are always interested in use and throw things because such
products save their time and energy. Paper dishes & Napkin is one
of such use and throw products. At presents people don’t want to
waste their time of various events and functions.
Paper dishes and napkins are use in large quantity at
marriage functions, other dinner parties, food courts, and
restaurants etc. this product can definitely take over the market
because it saves the time and energy of its consumers and money
of the organizer of the functions where paper Dishes and Napkins
are used the paper Dish and Napkins are easily available in the
market also.
Hence, this is very popular product in the life of the modern
time people.
Uses of the Product
Paper Dishes and Napkins are generally available in various
types of design, color and size. At marriage functions, parties,
receptions etc. lots of paper dishes and Napkins are use by people.
Especially in parties and receptions different types of varieties of
paper napkins are use by guest at parties to clean their hands.
Paper dishes are generally used for dry items at the functions.
Proposed location
This unit will be situated at Metoda G.I.D.C. It is hardly 13 km
away from Rajkot city. Therefore all the benefits, which are
attached with the Rajkot city, will be available to unit. The second
benefit is that Metoda G.D.I.C. is concerned with Industrial Zonal
Area and Government of Gujarat is continuously trying to mobilize
industrialization in this area. Here, all types of facilities like water
supply, electricity, infrastructure, communication etc are easily
available at reasonable rate.
The various factors considers for selection of proposed
location are as follows.
1. Supply of raw material: - Raw material is the basic input, which must be given
equal importance. The most of raw material is made available
from Ashok Paper Industries, which is also located in the
Metoda G.I.D.C. hence; our unit is situated much nearer from
the raw material supplier
2. Availability of labors: - Availability of labor influences the selection of location.
Unit requires both semiskilled and skilled labors. Both types of
labors can be made available from the local are so availability
of labors never creates problem.
3. Transportation facilities: - Transportation is required for assembling of raw
material and distribution of finished product. As most of the
raw materials are available from Ashok Paper Industry
situated in the same area, it is easy to carry out it by
rickshaw.
For the distribution of the finished product; rickshaw,
matador and trucks will be used. As the product is of
lightweight and not of costly nature, it will not require any
special type of transportation facilities. All transportation
facilities are available from Rajkot.
4. Land: - The basic necessity for each and every industry is land.
Without land no industry can be come into existence. In the
Metoda G.I.D.C. land is available at subsidized rate by
government of Gujarat.
5. Power, water supply and other facilities: - As Metoda G.I.D.C. is declared as industrial zone by
the government of Gujarat, the state government provides,
water, power and other facilities like road, shed etc at
cheaper rates.
In this manner the all above mentioned factors
justify the selection of the proposed location that it would
definitely contribute to the profitability and success and
growth of plant.
Production Detail
INSTALLED CAPACITY
NO. PRODUCT DAILY PCS.
MONTHLY (25 DAYS) PCS.
YEARLY (300 DAYS) PCS.
1. Paper dish & napkin
1,33,333 33,33,333 4,00,00,000
CAPACITY UTILIZED (60% At first year & second year)
NO. PRODUCT DAILY PCS.
MONTHLY (25 DAYS) PCS.
YEARLY (300 DAYS) PCS.
1. Paper dish 40,000 10,00,000 1,20,00,0002. Paper napkin 40,000 10,00,000 1,20,00,000
65% AT THIRD YEAR
NO. PRODUCT DAILY PCS.
MONTHLY (25 DAYS) PCS.
YEARLY (300 DAYS) PCS.
1. Paper dish 43,333 10,83,333 1,30,00,0002. Paper napkin 43,333 10,83,333 1,30,00,000
Production Process
Con-v-nient Paper Industry produces Paper Dish & Napkin.
The process of producing paper dish and napkin is very much easy.
Nothing would be complex and the whole process is being
managed by efficient administration and supervision performed by
the most experienced person.
The main raw material required to prepare paper dish and
paper napkin is paper roll. We get raw materials from Ashok Paper
Industry and also from other paper industries. The nearer suppliers
supply most of the raw materials so it is available in less cost.
To produce paper dish, the paper is cut into the required size
by the punching machines as we can say in other words that paper
has been shaped with dish making machines.
For making paper napkins, paper roll is automatically colored
cut into required size with the help of a napkin machine. We
produces paper dish and napkins in various colored and in different
designs as well as sizes.
Thus in this way the production of paper dish and paper
napkin is been made. It starts with acquiring raw material that is
paper rills that are been processed at the unit by paper dish
machine and paper napkin machine and then it makes out the
finished products. Lastly paper dishes and napkins are dispatched
to wholesaler and retailer.
In this manner the process of producing paper dish and
napkin is quite easy.
Financial detail
1. LAND: -
NO. PARTICULARS SQURE METER
RATE/ SQ. M.
AMOUNT
1. Open land 350 500 1,75,0002. Registration - - 55,000
Total 2,30,000
2. BUILDINGS: -
NO. PARTICULARS AREA RATE/ SQ. M.
AMOUNT
1. Factory Shed 300 1,000 30,0002. Office 50 1,200 60,0003. Other (R&D,
bathroom, Water tank, Designing etc.
50 1,350 67,500
Total - - 4,27,500
3. PLANT & MACHINERY: -
NO. PARTICULARS AREA RATE/ SQ. M.
AMOUNT
1. 30’ size paper napkin making machine
01 2,25,000 2,25,000
2. Paper dish making machine
50 1,200 60,000
3. Other (R&D, bathroom, Water tank, Designing etc.
50 1,350 67,500
Total - - 4,27,500
4. FURNITURE & VEHICLE: -
NO. PARTICULARS AMOUNT1. Office furniture 27,0002. Vehicles 3,65,000
Total 3,92,000
5. COAST OF PROJECT
COST OF FIXED ASSETS
NO. PARTICULARS AMOUNT1. Land 2,30,0002. Building 4,27,5003. Plant & machinery 5,66,0004. Furniture & Vehicle 3,92,000
Total 16,15,500
WORKING CAPITAL COST OF PROJECT
NO. PARTICULARS AMOUNT1. Value of raw materials 7,39,2002. Wage & salary 1,03,5003. Electricity bills 14,4004. Overhead expenses 5,700
Total workingcapital(1 year) 8,62,800Total working capital (1 month) 71,900
TOTAL COST OF PROJECT
NO. PARTICULARS AMOUNT1. Fixed assets 16,15,5002. Working capital( 2 months) 1,43,800
Total cost of project 17,59,300
6. FINANCIAL PROVISIONS: -
LOAN
NO. PARTICULARS
G.S.F.C. OWN BANK TOTAL AMOUNT RS.
1. Land 1,30,000 1,00,000 - 2,30,0002. Building 2,00,000 77,500 1,50,000 4,27,5003. Plant &
machinery3,00,000 2,66,000 - 5,66,000
4. Furniture & vehicle
- 92,000 3,00,000 3,92,000
5. Working capital
- 43,800 1,00,000 1,43,800
Total 6,30,000 5,79,300 5,50,000 17,59,300
MEANS OF FINANCE
NO. PARTICULARS AMOUNT1. G.S.F.C. 6,30,0002. Own contribution 5,79,3003. Bank 5,50,000
Total 17,59,300
7. COST OF PRODUCTION: -
RAW MATERIAL
No.
PARTICULARS REQUIREMENT
RATE MONTHLY
YEARLYRS.
1. Paper roll 28,000 1.10 30,800 3,69,6002. Paper dish &
napkin28,000 1.1 30,800 3,69,600
Total 56,000 - 61,600 7,39,200
LABOUR CHARGES
NO. PARTICULARS NUMBERS MONTHLY RS.
YEARLY RS.
1. Skilled labour 01 2,500 30,0002. Semi-skilled
labours01 2,000 24,000
3. Unskilled labour 02 1,500 36,000Total 04 - 90,000Add : 15% other benefit
- - 13,500
Total labourcharges
- - 1,03,500
ELECTRICITY BILL
NO. PARTICULARS MONTHLY RS. YEARLY RS.1. Electricity bills 1,200 14,400
REPAIRS & MAINTENANCE
NO. PARTICULARS YEARLY RS.1. Repairs & maintenance 13,000
INSURANCE & TAXES
NO. PARTICULARS YEARLY RS.1. Insurance & taxes 12,000
DEPRICIATION
NO. PARTICULARS RATE OF DEPRICIATION
YEARLY RS.
1. Building 5% 21,3752. Machinery 15% 84,9003. Furniture 10% 39,200
Total Depreciation
- 1,45,475
INTEREST
NO. PARTICULARS PRINCIPLE AMOUNT RS.
YEARLY INTREST
1. G.S.F.C. 6,30,000 1,00,8002. Own contribution
(15%)5,79,300 86,895
3. Bank (18%) 5,50,000 99,000Total Interest - 2,86,695
ADMINISTRATIVE EXPENSES
NO. PARTICULARS MONTHLY RS. YEARLY RS.1. Stationery 500 6,0002. Postage &
telephone1,200 14,400
Total Amount 1,700 20,400
TOTAL COST OF PRODUCTION: -
NO. PARTICULARS YEARLY RS.1. Raw materials 7,39,2002. Labour charges 1,03,5003. Electricity bills 14,4004. Repairs & maintenance 13,0005. Insurance & taxes 12,0006. Depreciation 1,45,4757. Interest 2,86,6958. Administrative expenses 5,700
Total Cost Of Productions 13,40,370
8. PROFITABILITY OF THE PROJECT: -
PARTICULARS AMOUNT Paper dish, 118 lacs pcs. ( Rs. 11500 per lac pcs.) Paper napkin, 118 lacs pcs. ( Rs 4460 per lac pcs. )
13,57,000 5,26,280
Total salesLess: Total cost of production
18,83,28013,40,370
Profit before taxLess: Income tax @ 35%
5,42,910 1,90,019
Profit After Tax 3,52,891
9. STATEMENT OF CLOSING STOCK: -
PARTICULARS PIECESTotal production @ 60% capacity Less: Total sales
2,40,00,0002,36,00,000
Closing Stock 4,00,000
Break even analysis
Break-even analysis is a scientific analysis, which leads
producers towards more systematic and scientific production
planning or sales planning. It is because of break-even analysis that
the firm can accordingly work out the required size of the plant. By
break even analysis the small-scale entrepreneur can get proper
guidelines about volume of sales to be achieved to avoid the
danger of loss.
Break-even analysis indicates a point where total revenues
are equal total cost. It means a volume of sales where firm earns
neither profit nor suffer loss in called Break-even point.
Calculation of Break Even PointPARTICULARS AMOUNT AMOUNT Sales
Less: Variable cost Raw materials Labour charges Administrative expenses Electricity bills Overhead expenses CONTRIBUTION
Less: Fixed costs Interest Depreciation Insurance & taxes Repairs & maintenance
PROFIT BEFORE TAXLess: Income tax @ 35%
NET PROFIT
7,39,2001,03,500 20,400 14,400 5,700
2,86,6951,45,475 12,000 13,000
18,83,280
8,83,200
10,00,080
4,57,170
5,42,910 1,90,019
3,52,891
Break even point (%): -
Fixed costs= X 100
Contribution
457170= X 100
1000080
= B.E.P. (%) = 45.71%
Break even point (Rs.): -
Fixed costs= X Sales
Contribution
457170= X 1883280
1000080
= B.E.P. (Rs.) = 860910
Profit volume ratio: -
Contribution= X 100
Sales
1000080= X 100
1883280
= P.V.R.= 53.10%
Net profit ratio: -
Net Profit= X 100
Sales
352891= X 100
1883280
= N.P.R.= 18.74%
Market analysis
We know very well that paper dish and napkin are consumer’s
products. Paper dish are use for putting items in it and paper
napkins are used for cleaning the hands by it. These two products
are generally used more in town and city areas. Now it also
becomes popular in many rural areas. At present few units are
manufacturing these products. Looking forward to the demand of
these products, the market of paper dish and paper napkin is very
good.
Ashapura Paper Industry supplies paper dish and paper
napkins to the wholesaler and retailers. It also supplies the same to
the many hotels and restaurants of the cities like Rajkot, Jamnagar,
Bhavnagar, Junagadh etc. Unit also has the benefit of good
relationship with customers because one of the partners Mr. Rohit
Nihalani has maintain very good personal relations with the
customers because of his five years experience in the same
industry.
At present, these products are use in many occasions as well
as at many places like food courts, restaurants, and sweet marts,
etc. It is also used at home while birthday parties; other small
functions etc, so we can say that the market for these products is
very good and the products are well accepted by the people.
Future prospects of the project
In modern age, popularity of these products paper dish and
paper napkin is increasing. Therefore the demand of it is increasing
day by day. Not only of this product but now a day’s future of whole
paper industry is looking very bright. The uses of paper dish and
paper napkin are more in urban areas than rural areas.
This indicates about expansion and development of the
project. Accordingly the present project is also expected have a
better prospects.
Risk factors
It is essential to consider the risk factors before starting the
process of production. The extent of influence of risk factors must
be assessed first.
As far as our unit is concerned, the main risk factors are
competition and various types of designing skills. Every unit
requires the different types of skilled person. Our unit also needs
that type of persons whose designing skill is better than the other
unit’s person.
If the craze of small parties, receptions, etc decreases, the
demand of paper dish and paper napkin may also drop down.
Moreover, some major financial institutes do not recognize our
industry so there is a limitation of source of finance. Government is
right now playing a role of guardian of small-scale industries but in
future if government change its policies regarding such industries, it
will result into increase in coasts of the project.
These are the major risk factors involve with our industry.
Suppliers
MACHINERY AND EQUIPMENTS: -
1. Paper napkin machine M/s. Sheth Engineering Pvt.Ltd.
13, Mody House, 1st floor,
Tribhuvan Road,
Mumbai – 400 004
2. Paper dish making machine and dish punching machine M/s. G.J. Engineering Pvt. Ltd.
Naroda GIDC, Shed No. 48.
Rajkot – Ahemdabad high way road.
RAW MATERIALS: - 1. Ashok Paper Industry – Metoda GIDC
2. Hirawati Paper Industry Limited - Paddahari
3. M/s. Himaliya Paper Board Industry – Gandhidham
A
PROD U CT PROJECT REPORTT
OOn
PAPERR DISH & N A PKIN
COLLEGE
T. N. Rao College of I.T. & Management
GUIDED BY
Dr. Mita B. Vora
SUBMITTED TO
SAURASHTRA UNIVERSITY – RAJKOT
Prepared By : Jagdish V. Khimsuriya
Class : Third Year B.B.A.
Roll Number : 6
Seat Number :
Academic Year : 2005 – 06
INDEXSR.NO
. PARTICULARS
1. Declaration
2. Certificate
3. Introduction To Project Partners & Product
4. Proposed Location
5. Production Details
6. Financial Details Of The Project
7. Break Even Analysis
8. Market Analysis
9. Suppliers
IINTRODUCTIONNTRODUCTION TTOO
PPROJECTROJECT PPARTNERSARTNERS
& P& PRODUCTRODUCT
PPROPOSEDROPOSED
LLOCATIONOCATION
PPRDUCTIONRDUCTION
DDETAILSETAILS
FFINANCIALINANCIAL
DDETAILSETAILS
OOFF
TTHEHE
PPROJECTROJECT
BBREAKREAK E EVENVEN
AANALYSISNALYSIS
MMARKETARKET
AANALYSISNALYSIS
SSUPPLIERSUPPLIERS