DECLARATION

Undersigned Mr. Rakesh Nasit, a student of T.Y B.B.A., here by declares that this is my own work.

I declare that this project has not been submitted to any other college previously.

Place: Jamnagar Yours Sincerely,Date:

(Mr. Viren Kanani)

1

ACKNOWLEDGEMENTIt is really a matter of great pleasure for me to present this creative and

practical work. At this stage, project report is an important part of learning & every

entrepreneur prepares it before starting of actual production.

I have taken this opportunity to express my sincere thanks to all those who

helped me in the preparation of this report.

First of all I would like to thank my parents who have encouraged me for

preparing such a perfect product project report, then Prof. Gaurav Mehta for his

guidance.

I am also thankful to my senior friends who had helped me in preparing this

product project report.

I am very glad to submit the report before the Saurashtra University. I have

tried my level best to present the available information in the best possible manner.

2

INDEXSr. No. Particular Page No.

1. Project At Glance 6

General Information 7

2. Introduction 8

3. BIS Specification 9

4. Management Set up 10

5. Size of Unit 11

6. Forms of Organization 12

7. Plant Location Factors 13-14

8. Information about the product 15

Production Department 16-19

9. Manufacturing Process 17

10. Aspects of machineries 18

11. Raw Material 19

Marketing Department 20-23

12. Introduction 21

13. Market Potential 22

14. Channels of Distribution 23

Financial Details 24-40

15. Project mgmt. & Construction Schedule 25-26

16. Production capacity 27

17. Fixed Assets 28-30

18. Working Capital Requirement 31-34

19. Financial statement 35

20. Cost of Production 36

21. Profit Analysis 38

22. Balance Sheet 39

23. Break Even Point 40

24. Ratio Analysis 41

Conclusion 42

Appendix 43-44

Bibliography 45

3

PROJECT AT GLANCE

Name of the unit KANANI INDUSTRIES

Product BLADES

Address G.I.D.C. phase-II, Jamnagar

Form of Organization Proprietorship

SSI Registration Number Application is made

Location Unit G.I.D.C. phase-II, Jamnagar

Owner’s Name VIREN KANANI

Total Investment Rs.1,41,98,500

Total Production Capacity Type-1 Blade : 4, 50,000 Packs.

Type-1 Blade: 4, 80,000 Packs.

4

5

GENERAL GENERAL INFORMATIONINFORMATION

INTRODUCTION

The industrial structure of India can be classified into three main groups; they are

large scale, medium scale & small-scale sectors. The small-scale industry plays an

important role in Indian economy. The small-scale industries can be further sub divided into

village or cottage industry & modern small-scale industry.

Today, SSIs are ensuring more equitable distribution of the national income & they

facilitate an effective mobilization of resources. Small firms are found co-existing with the

large firms in the business world. The main reason behind this is the low cost strategy

adopted by SSI with mixture of both the production techniques, i.e., Capital Intensive

Techniques as well as Labour Intensive Techniques.

This project report is related to a SSI of Steel Products industry namely, LION

Industries located in Jamnagar, producing Blade. Here is the detail of the whole project

related to the production, finance, etc.

6

BIS SPECIFICATION

Razor blades are subjected to quality inspection before they are packed. Most of

the blade manufacturing units in the country employ visual inspection methods. There is a

need for mechanical quality control of the blades for which the quality testing apparatus will

have to be imported. Bureau of Indian Standard have been developed following

specification regarding this product.

IS: 7370-1974 Razors, safety (with Amendments No. 1 to 3 Reaffirmed

1987)

IS: 10198-1982 Carbon steel, safety razor blades.

IS: 9476-1980 Codl-rolled steel strips for carbon steel razor

Blades.

IS: 7371-1982 Stainless steel safety razor blades (second revision).

IS: 9294-1979 Cold-rolled stainless steel strips for razor blades

(Reaffirmed 1987).

7

MANAGEMENT SET-UP

Proprietor Profile:-

1. Name : Mr. VIREN KANANI

2. Address (Resi.) : 58, Digvijay Plot,

Udhyognagar Road,

C/o. Natraj Laundry,

Jamnagar 361005.

3. Address (Office) : LION Industry,

Udhyognagar road,

G.I.D.C. Face – 2

Jamnagar – 361005.

4. Age : 25 years

5. Qualification : M.B.A.

6. Financial Contribution : 100%

7. Nature of Work : Overall Management

8

SIZE OF UNITA company can be classified on the basis of size. There are three types of

industries on the bases of size in an economy. They can be named as under.

1. Large Scale Industries

2. Medium Scale Industries and

3. Small – scale Industries

Generally, Small Scale industries can be classified as the company having

capital investment in its plants and machineries less than Rs. 1 Crore.

9

The project LION INDUSTRIES envisages manufacture of BLADE at an

estimated project cost of Rs.125.69 Lakhs only so the project comes under the small

scale industries.

PLANT LOCATION FACTORS

One of the early decisions that an entrepreneur has to make is the choice of

location of the business. The process of locate of any firm in a particular industry is

called industrial location. The entrepreneur has to locate the firm at such a place

where the cost of production is lower. The aim of any business is the maximization of

profit and maximization of cost of production. Thus, an entrepreneur must think

carefully while deciding the location of any industry.

Location means “selection of place for establishment of industry where the

cost of production is lowest ant the time of establishment.”

There are severing factors, which are taken into consideration while selection

location of an industry.

Raw Materials:

The major component or major input, which is inevitable part of any

production process, is availability of raw material. Availability of raw material at

proper time, at reasonable rate, in right quality and quantity, etc. directly affects the

price of the final product.

10

The raw materials required are not the demand site specific and hence the

project may be located near a major town or city.

Labor:

Manpower input, i.e. labour could be put at second number after raw material.

Cheaper and efficient labour availability enrich the firm and thus, it is very crucial in

nature. LION BLADES is located in the G.I.D.C., where availability of labour is very

easy.

Market:

The main concentration of every product is to get potential market and

proximity to the market is one of the most considerable variables.

Transportation:

Speedy transport facilities are needed for the regular and timely supply of raw

materials and finished goods. For this purpose we will use road transportation, as it

is very cheap and available very freely.

Availability of Power:

In an atomization industry, availability of power is very important for its production

function. Even a single minute stoppage of production in such industries will be resulted in

the loss of thousands of rupees. So, the availability of power is very important for

continuous production of the products. We are getting enough power supply through G.E.B.

to continue our production process.

11

GENERAL INFORMATION ABOUT THE PRODUCT

The craving for keeping one's face free from hair existed even before the dawn of

civilization. The first tool used for shaving was the knife blade with a wooden handle. The

so-called razor was invented in the latter half of the nineteenth century and it consisted of a

small sharp blade placed in a holder in such a way that only the edge could touch the skin.

Later safety razor blade was invented but king camp Gillette who established the first

factory in 1903 at Bosten, USA, The blade gained instant local popularity, but the real

impetus was received during World War I when about 4 million blades were

distributed among the American forces of war. After the expiry of Gillette’s patent right in

1921. Several other brands flooded the markets. The safety razor blade industry received

further fillip during World War II, again through the agency of forces on war. By the end of

the World War, safety razor blades had become a daily necessity.

Razor blade is highly consumable item of daily use by man for shaving purposes.

Since shaving is costlier at Saloon, 90% people use to make their shaves themselves by

using blades. The second advantages of shaving at home are saving of time and no risk of

any disease.

Because of the above factors, the demand of razor blade has been increasing day

by day and as such the population of India is also increasing every day. The razor blades

are mostly being manufactured by the foreign firms in India, although Indian firms are also

in the field but their product is not up to the mark. Therefore, high quality razor blade has

ample scope in Indian market as well as foreign market.

12

13

Production Production DepartmentDepartment

MANUFATURING PROCESS

Blades

Razor blades are periodically exposed to high levels of moisture and therefore must be made

from a special corrosion resistant steel alloy. Furthermore, the grade of steel must be hard

enough to allow the blade to hold its shape, yet malleable enough to allow it to be processed.

The preferred type of steel is called carbide steel because it is made using a tungsten-carbon

compound. One patented combination of elements used in stainless steel blade construction

includes carbon (0.45-0.55%), silicon (0.4-1%); manganese (0.5-1.0%); chromium (12-14%)

and molybdenum (1.0-1.6%); with the remainder being iron.

Plastic parts

The plastic portions of a safety razor include the handle and blade cartridge, or portions

thereof, depending on the razor design. These parts are typically molded from a number of

different plastic resins including polystyrene, polypropylene, and phenyleneoxide based

resins as well as elastomeric compounds. These resins are taken in pellet form and are melted

and molded into the razor components through a combination of extrusion and injection

molding techniques. For example, in making the handle for their advanced shaving systems,

Gillette uses a coextrusion process which simultaneously molds an elastomer molded over

polypropylene to create a surface that is easy to grip.

14

Other components

Razors may contain a variety of miscellaneous parts which help hold the blade in place,

guards which cover the blade during shipping, or springs or other release mechanisms which

facilitate changing of the blades. These pieces are molded by similar processes. The more

sophisticated brands include a lubricating strip made of polyurethane, or other similar

materials, that is impregnated with acrylic polymers. These strips are mounted on the head of

the razor, in front of the blades. The polymer film absorbs water and becomes very slippery,

thus creating a lubricating surface that helps the blade glide across the surface of the face

without snagging or cutting the skin.

Cutting blade formation

1 Blade manufacturing processes involve mixing and melting of the components in

the steel. This mixture undergoes a process known as annealing, which makes the

blades stronger. The steel is heated to temperatures of 1,967-2,048°F (1,075-

1,120°C), then quenched in water to a temperature between -76- -112° F (-60- -80° C)

to harden it. The next step is to temper the steel at a temperature of (482-752°F (250-

400°C).

2 The blades are then die stamped at a rate of 800-1,200 strokes a minute to form the

appropriate cutting edge shape. The actual cutting edge of modern cartridge style

razor blade is deceptively small. The entire cutting surface is only about 1.5 in

(3.81cm) wide by 1 mm deep. This is compared to traditional

15

The plastic portions of a safety razor include the handle and blade cartridge. These

parts are typically molded from a number of different plastic resins, including

polystyrene, polypropylene, and phenylene-oxide based resins as well as elastomeric

compounds. Razor blades are made from a special corrosion resistant blend of steel

called carbide steel because it is made using a tungsten-carbon compound.

razor blades which are almost 20 times wider and several times thicker. This design

creates efficiencies in manufacturing by allowing the creation of a durable cutting

surface using very little metal. Because the blade is so small, a special support

structure is required to hold it inside the cartridge.

Support member formation

3 At a separate work station, another sheet of metal passes through a die and cutter

device to form a series of L-shaped support members. These support members are

formed in a line with two edge runners connected to each side.

16

4 The row of supports, still connected to the edge runners is rolled onto a coil and

transported to the next station. There the support pieces are severed from the edge

runners which are collected in a waste bin. The support members are dropped into a

funnel-like device equipped with a vibrating unit which deposits individual support

members onto a conveyor belt. The belt transfers the members in a single file fashion

the third work station where they are welded onto the cutting blade. The finished

blade assembly is then ready for mounting in the cartridge. Because the entire process

is automated, waste from broken or bent cutting blades and support members is

minimized.

Plastic component molding

5 Concurrent with the blade-making operations, the plastic components are molded

and readied for assembly. The plastic resins are mixed with the plasticizers, colorants,

antioxidants, stabilizers, and fillers. The powders are mixed together and melted in a

special heated screw feeder. The resultant mixture is cut into pellets which can be

used in subsequent molding operations.

6 Plastic razor parts are typically extrusion molded. In this process, molten plastic is

shaped by being forced through the opening of a die. The parts can also be

manufactured by injection molding, where plastic resin and other additives are mixed

17

The manufacture of safety razors involves First making the blade cartridge by die

stamping the carbide steel and then welding the blades to steel support members.

Simultaneously, the plastic components are extruded or injection molded and readied

for assembly. The blade cartridge and plastic ports are automatically assembled at

workstations that use vacuum lines to orient and hold the small blade ports in place

during transport and insertion. Spring loaded arms push the blades into place and

secure them in the cartridge slots. The finished cartridge may be attached to the razor

handle during subsequent operations or they may be packaged separately.

together, melted, and injected into a two piece mold under pressure. After the plastic

has cooled, the mold is opened and the plastic parts are ejected. Major manufacturers

have extremely efficient molding operations with cycle times for molded plastic parts

18

routinely below 10 seconds. These processes are so efficient that the thermoplastic

runners and other scrap from the molding process are reground, remelted, and reused.

Assembly of components

7 The molded plastic components are fed to various work stations where the blade

assembly is inserted into the cartridge. The work surfaces in these stations are

equipped with vacuum lines to orient and hold the small blade parts in place during

transport and insertion. Spring loaded arms push the blades into place and secure them

in the cartridge slots. The finished cartridge may be attached to the razor handle

during subsequent operations or they may be packaged separately. This step may

include insertion of springs and other parts in the handle to allow ejection of the

cartridge.

Packaging

8 Razors are routinely packaged in clear plastic blister packs with a cardboard

backing sheet that allow display of the razors design. Refill blade cartridges can be

packaged in boxes, although most current designs require the cartridges to be held in a

plastic tray that helps insert them into the handle.

19

SOME BRIEF ASPECTS OF PLANT & MACHINERY

1. Fully Automatic Press for Razor Blades. In this press about 12 lacs blades can be

manufactured in 48 hours every week. This press is operated electrically and 2 H.P. motor

is sufficient. This press consists of one die which cuts the razor blades.

2. Fully Automatic Electric Hardening Machine. This is a kind of furnace provided with

electric connection and switch board. It consist of a hardening table where tempering

furnace, cooling plates and rewinding equipments are fitted along with the plates and

switch board. This furnace requires about 10 k.w. power.

3. Automatic Etching Machine. The machine is used for printing the name and brand of the

firm. It contains one infrared value by the help of which the brands are printed using acid.

This machine is operated with 1/2 H.P. motor and compressor requires 3 H.P. motor.

This machine can produce 10 lacs razor every week.

4. Varnishing Machine. In order to prevent from rust, the blades are coated with varnish.

Varnishing machine is used for this purpose. This machine coats varnish on steel strip

itself. This strip is passed through varnish bath and dried by infrared resistance. The

machine contains a gear box for controlling the speed. By this machine 10 lacs blades can

be produced in every week. 4 Kw power is required for resistance.

5. Cutting Machine. To form the blades from steel strips, cutting machine is used. In this

machine a die is fitted by help of which the blades are cut in suitable sizes. The capacity of

this machine is 10 lacs blades per week and 1/2H.P. motor is required to operate.

20

RAW MATERIAL

The main raw material for razor blade is steel strip which is imported from other

countries. In India there are dealers who import the material and sell to the consumers but

its cost is very high. If the manufacturer imports it directly, the material cost will be on the

lower side and as a result the production cost will be completely low. Steel strip is available

in different dimensions and rolled like paper.

This strip is made of two metals-carbon and chromium.

The commonly used dimensions of steel strips are as under:-

1. 0.881*0.0024" thick 0.881*0.004" thick

2. 0.881*0.0032" " 0.881*0.005" "

Raw Material Requirement:-

BASIS: 3, 40,000 lacs Nos. of Blade.

Steel strips 1.5 Metric Ton’s.

21

Financial department

22

PROJECT MGMT. & CONSTRUCTION SCHEDULE

Project management and project planning has a direct impact on construction

schedule. The length of the gestation period destermines not only the quantum of financial

charges such as interest but also project costs. It also effects the provision for

contingencies which is linked with price movements. Since price movements has

although adopted an upward trend, the gestation period could have a very significant

bearing on the total capital cost. Any extension in time schedule may also alter the market

structure with the emergence of new competitors.

PROJECT SCHEDULING :

The management will be scheduling these activities so as to complete the job in an

acceptable time span and finally control the conduct of the scheduled work. In matters of

planning. The management will consider the requirement, availability and employment of

the necessary man power and facilities for carrying out the programmed in such a

manner that cost and time required are properly balanced and excessive demands on

key resources is avoided.

23

PROJECT CONSTRUCTION SCHEDULE:

A detailed programmed in the form of CPM network will be prepared conversing all

the key contracts. The detailed will highlight the dates for

I) Invitation of tenders,

ii) Receipt of quotations

iii) Scrutiny of bids,

iv) Receipt of materials and equipment and machinery taking into consideration the

time required for preparation of bids and delivery periods of various purchased items. A

schedule of work in will be prepared to set in detail all the units comprising the project.

A complete procurement specification will be prepared for each item of plant and

machinery and for civil and structural work.

TIME SCHEDULE:

A construction programmed has been developed to accomplish the desired

objectives within a time span which is as short as possible without being excessively

curtailed. A time span of Eight months for project completion defined by erection and

commissioning of the plant is estimated. The following table gives the time schedules for

major works carried out in the implementation of the project.

Production Capacity24

Installed Capacity: Table No.2

Product Categories Daily Production

Monthly 25 Days

Yearly 300 Days

Single Blades

Double Blade

1,000 pkt.

1,100 pkt.

25.000 pkt.

27,500 pkt.

3,00,000 pkt.

3,30,000 pkt.

Utilized Capacity at 50%

Table No.3

Product Categories Daily Production

Monthly 25 Days

Yearly 300 Days

Single Blades

Double Blade

500pkt.

550 pkt.

12,500 pkt.

13,750 pkt.

1,50,000 pkt.

1,65,000 pkt.

Utilized Capacity at 70%

Table No.4

Product Categories Daily Production

Monthly 25 Days

Yearly 300 Days

Single Blades

Double Blade

700 pkt.

770 pkt.

17,500 pkt.

19,250 pkt.

2,10,000 pkt.

2,21,000 pkt.

Fixed Assets :

25

Land: Table No.5

Sr. No.

Particulars Square Feet

Amount Per Sq. Feet

Total (Rs.)

1 Land 5,000 400 Rs. 20,00,000 Rs.

Building: Table No.6

Sr. No. Particulars Square Feet

1

2

3

4

5

6

Manufacturing Shed

Raw Material Go Down

Maintenance Store Room

Packing Room

Finished Goods Store Room

Office

4060

470

200

160

110

200

Total Construction 5200

Total Construction Rate Per Sq. Feet Total Rs.5200 Square Feet 200 10,40,000

Land & Building: Table No.7

26

Sr. No. Particulars Square Feet1

2

Land

Building

20,00,000

10,40,000

Total Construction 36,40,000

Plant & Machinery: Table No.8

Sr. No. Particulars Qty. Amount 1

2

3

4

5

6

7

8

Punch Machine

Fully automatic press

Automatic electric Harding machine

Cutting Machine

Grinding And polishing machine

Tool grinder

Misc. tool and accessories

Packing Machine

1

1

1

1

1

1

1

1

4,20,000

6,00,000

7,00,000

10,50,000

7,40,000

5,75,000

5,05,000

2,70,000

Total 48,60,000

Furniture & Office Equipments:

Table No.927

Sr. No. Particulars Amount1

2

3

4

5

6

Furniture

Air Condition

Computer

Stationery

Fax

Printer

2,35,000

30,000

1,35,000

10,000

5,000

5,000

Total 4,20,000

Total Fixed Capital: Table No.10

Sr. No. Particulars Amount

1

2

3

4

Land

Building

Plant & Machinery

Furniture & Office Equipments

20,00,000

10,40,000

48,60,000

4,20,000

Total 83,20,,000

Working Capital Requirement Per Month Raw Material:

28

Table No.11

Sr. No. Particulars Amount1

2Steel strips -1

Steel strips-2

4,70,000

3,00,000

Total 7,70,000

Personnel Salary & Wages: Table No.12

Sr. No. Particulars No. Amount Total Amount1

2

3

4

Supervisor

Administration Staff &

Accountant

Unskilled Labors

Skilled Labors

3

8

15

12

3,000

4,000

1,500

2,000

9,000

32,000

22,500

24,000

Total 38 87,500

Utilities: Table No.13

Sr. No. Particulars Amount1

2

3

Electricity

Oil

Tools

13,000

2,500

2,500

Total 18,000

Depreciation: Table No.14

29

Sr. No.

Particulars Rate of Dep.

Actual Amount

Total Dep. Amount

1

2

3

4

Land & Building

Plant & Machinery

Furniture &

Other Office

Equipments

10%

20%

10%

25%

30,40,000

48,60,000

2,35,000

1,55,000

3,04,000

9,72,000

23,500

38,750

Total 13,38,250

Repairs & Maintenance: Table No.15

Sr. No. Particulars Amount

1

2

Repairs

Maintenance

4,000

3,000

Total 7,000

Rent & Insurance: Table No.16

Sr. No. Particulars Amount1

2

Rent

Insurance Premium

Nil

14,000

Total 14,000

Administrative Expenses: Table No.17

30

Sr. No. Particulars Amount1

2

3

4

5

Printing & Stationary

Postage & Telegram

Telephone

Bonus and Incentives

Others

2,000

1,500

3,000

7,000

1,500

Total 15,000

Selling & Distribution Expenses: Table No.18

Sr. No. Particulars Amount

1

2

3

Transportation Charges

Advertising & Sales Promotion

Other Expenses

16,000

16,000

3,000

Total 35,000

Total Working Capital Requirement: Table No.19

31

Sr. No.

Particulars Amount (Monthly)

Amount (Quarterly)

1

2

3

4

5

6

7

Raw materials

Personnel Salary

Utilities

Repairs & Maintenance

Rent & Insurance

Administration Exp.

Selling & Distribution Exp.

7,70,000

87,500

18,000

7,000

14,000

15,000

35,000

23,10,000

2,62,500

54,000

21,000

42,000

45,000

1,05,000

Total 9,46,500 28,39,500

Total Capital Investment: Table No.20

Sr. No. Particulars Amount

1

2

Total Fixed Assets

Total Working Capital Requirement

83,20,000

28,39,000

Total 1,11,59,000

Financial Provision & Sources of Finance Financial Provision:

32

Table No.21

Sr. No. Particulars Bank Loan Bank C.C. Proprietor Total1

2

3

4

5

Land

Building

Machinery

Furniture

Working Capital

....

8,00,000

12,00,000

….

….

….

….

….

28,39,500

20,00,000

2,40,000

36,60,000

4,20,000

….

20,00,000

10,40,000

48,60,000

4,20,000

28,39,500

Total 20,00,000 28,39,500 63,20,000 1,11,59,500

Sources Of Finance: Table No.22

Sr. No. Particulars Percentage Amount

1 Proprietor’s Capital:

Jaydip Panara 56.63% 63,20,000

2 Borrowed Capital:

Bank Loan

Bank Cash Credit

17.93%

25.44%

20,00,000

28,39,500

Total 100.00% 1,11,59,500

Interest On Capital: Table No.23

33

Sr. No. Particulars Rate Of Interest

Amount Invested

Amount of Interest

1

2

3

Proprietor’s Capital

Bank Loan

Bank Cash Credit

12%

15%

15%

63,20,000

20,00,000

28,39,500

7,58,000

3,00,000

4,25,925

Total 1,11,59,500 14,84,925

Statement of Sales & Cost of Production Total Sales: Table No.24

Product Categories Quantity packs.

Avg. Price par pack

Total

Type-1

Type-2

1,70,000

2,00,000

55.00

45.00

93,50,000

90,00,000

Annul Receipts 1,83,50,000

Add.: S.T.C.S.T. – 4% 7,34,000

Total Sales 1,76,16,000

Total Cost Of Production: Table No.25

34

Sr. No. Particulars Amount Rs.(A)1

2

3

4

5

VARIABLE COSTS:Raw Material

Personnel Salary & Wages

Utilities

Administrative Expenses

Sales & Distribution Expenses

92,40,000

10,50,000

2,16,000

1,80,000

4,20,000

TOTAL VARIABLE COSTS 1,11,06,000(B)1

2

3

4

5

6

FIXED COSTS:Personnel Salary & Wages (20%)

Salary To Proprietor

Insurance Premium

Repairs & Maintenance

Interest on Capital Invested

Depreciation

2,10,000

1,44,000

1,68,000

84,000

14,84,325

13,38,250

TOTAL FIXED COST 34,28,575TOTAL COST OF PRODUCTION 1,45,34,575

Profit Analysis

35

Table No.26

Particulars Total Rs.

Annual Receipts 1,76,16,000

Less Total Cost 1,45,34,575

Profit Before Tax 30,81,425

Less Income tax @ 35% 10,78,500

Add Surcharge @ 2.5% 26,960

Tax & Surcharge 11,05,460

Add Education cess @ 2% 22,110

Total Tax Liability 11,27,570

Profit Before Tax 30,81,425

Less Total Tax Liability 11,27,570

Net Profit 19,53,855

Balance Sheet (At the end of 1 st year) 36

Table No.27

Liabilities Amount Assets AmountProprietor’s Fund:

Jaydip : 63,20,000

Less

Drawing 3,20,000

Bank Loan

Bank Cash Credit

Net Profit

60,00,000

20,00,000

28,39,500

19,53,855

1,27,93,355

Land & Building:

30,40,000

Less: Dep.: 3,04,000

Plant & Machinery:

48,60,000

Less: Dep.: 9,72,000

Furniture & Equipment:

4,20,000

Less: Dep.: 62,250

Debtors

Cash in Hand

Cash in Bank

Cash in Stock

27,36,000

38,88,000

3,57,750

5,11,000

3,00,605

10,00,000

30,00,000

1,27,93,355

Break Even Analysis37

Break Even Analysis is very useful is any business to know the break even

point that is the point at which the firm has neither loss nor profit. It is the main

objective of any business to achieve the break even point and then try to achieve

more profit by increasing the sales of the products. It can be achieved by applying

the formula given below.

BEP = Fixed Cost x Sales

Sales - Variable Cost

Where as,

Fixed Cost : 34, 28,575 Rs.

Sales : 1, 76, 16,000 Rs.

Variable Cost: 1, 11, 06000 Rs.

BEP = 34, 28,575 X 1, 76, 16,000

1, 76, 16,000 - 1, 11, 06000

BEP = 92, 77,690 Rs.

Thus, the BEP is Rs. 92, 77,690 If the estimated sale is achieved then BEP

points will be achieved in the very short period of time of less than one year.

Ratio Analysis

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Net Profit Ratio:

Net Profit X 100

Net Sales

19,53,885 X 100

1, 76, 16,000

11.09%

Return on Investment:

Net Profit X 100

Total Investment

19, 53,885 X 100

1, 11, 59,500

17.51%

Conclusion39

The promoters are educates young and experienced having sound financial

background and having experience in different business.

The demand for product i.e. razor blade increasing day-by-day and there is a

shortage of supply. The cost of product to the promoters will be lower and supply will be

immediate. The market is sure and certain.

The financial working i.e. cost of product, profitability are satisfactory and

encouraging. The break-even point is lower; cash flow is adequate to pay back term

finance within time schedule. Fully automatic plant and machinery, no raw material cost,

these are all factors/indicators of a sound and successful project.

The market is increasing and the industrial development-taking place in nearby

areas will increase market tremendously. There are fewer competitors in the area. The

timely decision to start the project by promoters will be an additional benefit to the

promoters.

In nut shall considering the excellent market potentiality and good debt service

coverage ratio. Low BEP, the prospects for the project are very bright so there seems no

risk to proprietor as well as to financial institution.

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41

Personnel department

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43

 HRM means employing people, developing their capacities, utilizing, maintaining and

compensating their services in tune with the job and organizational requirement. The goal of

human resource management is to help an organization to meet strategic goals by attracting,

and maintaining employees and also to manage them effectively. Human Resource

Management is a process, which consists of four main activities, namely, acquisition,

development, motivation, as well as maintenance of human resources Human Resource

Management is responsible for maintaining good human relations in the organisation. It is

also concerned with development of individuals and achieving integration of goals of the

organisation and those of the individuals. According to Edwin B. Flippo, ―Human resource

management is the planning, organising, directing and controlling of the procurement,

development, resources to the end that individual and societal objectives are accomplished‖.

This definition reveals that human resource (HR) management is that aspect of management,

which deals with the planning, organising, directing and controlling

the personnel functions of the enterprise.

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HR PLANNING

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46

A promotion is a change for an individual (as opposed to a position) in duty

assignments and title to another in a higher pay grade, which involves

significantly higher level of responsibility and requires higher qualifications.

A demotion is a change in duty assignment from a position in one classification to

a position in another classification in a lower pay grade, which involves a lower

level of responsibility or requires lower qualifications.

A lateral transfer is considered to be a move to another position with the same

classification level (pay grade) and salary range. There is no change of

compensation associated with this change.

It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviours to enhance the performance of employees. 

Encouraging employees to acquire new or advanced skills, knowledge, and

viewpoints, by providing learning and training facilities, and avenues where such

new ideas can be applied.

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Performance appraisal

EMPLOYMENT WELFARE SCHEMES

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STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water should be

provided.

2. Facilities for sitting: In every organization, especially factories, suitable seating

arrangements are to be provided.

3. First aid appliances: First aid appliances are to be provided and should be readily

assessable so that in case of any minor accident initial medication can be provided to

the needed employee.

4. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided

in the office and factory premises and are also to be maintained in a neat and clean

condition.

5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to

provide hygienic and nutritious food to the employees.

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6. Spittoons: In every work place, such as ware houses, store places, in the dock area

and office premises spittoons are to be provided in convenient places and same are to

be maintained in a hygienic condition.

7. Lighting: Proper and sufficient lights are to be provided for employees so that they

can work safely during the night shifts.

8. Washing places: Adequate washing places such as bathrooms, wash basins with tap

and tap on the stand pipe are provided in the port area in the vicinity of the work

places.

9. Changing rooms: Adequate changing rooms are to be provided for workers to

change their cloth in the factory area and office premises. Adequate lockers are also

provided to the workers to keep their clothes and belongings.

10. Rest rooms: Adequate numbers of restrooms are provided to the workers with

provisions of water supply, wash basins, toilets, bathrooms, etc.

NON STATUTORY SCHEMES

Many non-statutory welfare schemes may include the following schemes:

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1. Personal Health Care (Regular medical check-ups): Some of the companies

provide the facility for extensive health check-up

2. Flexi-time: The main objective of the flextime policy is to provide opportunity to

employees to work with flexible working schedules. Flexible work schedules are

initiated by employees and approved by management to meet business commitments

while supporting employee personal life needs

3. Employee Assistance Programs: Various assistant programs are arranged like

external counseling service so that employees or members of their immediate family

can get counseling on various matters.

4. Harassment Policy: To protect an employee from harassments of any kind,

guidelines are provided for proper action and also for protecting the aggrieved

employee.

5. Maternity & Adoption Leave – Employees can avail maternity or adoption leaves.

Paternity leave policies have also been introduced by various companies.

6. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance

coverage of employees for expenses related to hospitalization due to illness, disease

or injury or pregnancy.51

7. Employee Referral Scheme: In several companies employee referral scheme is

implemented to encourage employees to refer friends and relatives for employment in

the organization.

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MARKETING

DEPARTMENT

Product marketing deals with the first of the "7P"'s of marketing, which

are Product, Pricing, Place, Promotion, Packaging, Positioning & People.

Product marketing, as opposed to product management, deals with more outbound

marketing tasks (in the older sense of the phrase). For example, product management deals

with the nuts and bolts of product development within a firm, whereas product marketing

deals with marketing the product to prospects, customers, and others. Product marketing, as a

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job function within a firm, also differs from other marketing jobs such as marketing

communications ("marcom"), online marketing,advertising, marketing strategy, public

relations, etc.

A Product market is something that is referred to when pitching a new product to the general

public. The people you are trying to make your product appeal to is your consumer market.

For example: If you were pitching a new console game to the public, your consumer market

would probably be the adult male Video Game market (depending on the type of game). Thus

you would carry out market research to find out how best to release the game. Likewise, a

massage chair would probably not appeal to younger children, so you would market your

product to an older generation.

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Product - A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. Intangible products are service based like the tourism industry, the hotel industry and the financial industry. Tangible products are those that have an independent physical existence. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system.[1]

Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product moves through each stage.[1]

The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line's depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies.[1]

Price – The price is the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix.[1]

When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing. The 'reference value' (where the consumer refers to the prices of competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account.[1]

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Promotion - represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion.[1]

Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations (see 'product' above).[1]

Place - refers to providing the product at a place which is convenient for consumers to access. Place is synonymous with distribution. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix

PRICE

PLACE GIDC JAMNAGAR

PRODUCT BLADE

PROMOTION

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