ENTREPRENEURSHIP PROJECT

ENTREPRENEURSHIP PROJECT

CHAPTER 1

INTRODUCTION

1.1   INTRODUCTION TO SSI:

The SSI (Small Scale Industry) today is immense for the growth of the country. Small scale industries are the industries which are run with the help of hired labour and which also use some simple machine and power. The investment scale in this industry varies from 5 lakhs to 1 crore for the fixed assets. Irrespective to number of workers engaged is called small scale unit.

In India these type of industries are promoted to meet with the problems of excess population and unemployment so the government of India promotes entrepreneur to step up small scale industries by aiding him by giving loans, subsidiaries, land, guidance etc. The strategy adopted by the government is:

1.     Public entrepreneurship should remain confirmed only to those industries and sectors where private enterprise, individual or corporate, is generally not attracted, Existing public entrepreneurship be improved through better management and by putting relatively greater emphasis on research and development. There is need to streamline the R & D wing of public sector enterprises.

2.     All possible efforts be made very seriously (not casually) for the development of an industrial culture. It should be realized that the central core of entrepreneurship is the motive force since by its very nature, entrepreneurship implies positive action and initiative, motivated individuals with the right kind of combination of abilities and attributes can pursuer their goal with unremitting courage and enthusiasm.

3.     There is need to develop management education and industrial training.

4.     The development of backward regions/areas constitutes a new challenge. Programs for their development be drawn up and should be effectively implemented.

5.     Adequate measures are a must for mobilizing and fostering the entrepreneurial talent in the country. In this context, it should be realized that entrepreneurs are not the gift of a particular class.

6.     Economic administration by the sate should be improved and made more effective so that economic policies may fully achieve their objectives in the overall interest of the economy.

7.     Financial institutions should provide adequate and timely credit and technical assistance, especially to the small and medium sized enterprises. They may also impart knowledge about the needs of the economy and they should file their massive data in terms of growth of new entrants or entrepreneurs in the field of industry.

1.2   PROCEDURE TO START A SMALL SCALE INDUSTRY:

Starting of small scale industries is not a very easy task. at the same time it is not difficult so, if different factors are considered before taking a decision to start it. For starting, the first and most important work is to select a suitable sit and then to make a proper scheme and yet approve.

Procedure to start small scale industry consist of following important steps-

1.2.1    GETTING STARTED: An entrepreneur desiring to set up an industry must first formulate comprehensive setting the industry for its success. For this, he should be confident, enthusiastic and realizing. He should therefore make himself familiar with the permanent policies and procedures, assistants and facilities he can get from whom and how.

1.2.2    SELECTION OF INDUSTRY: Selection of a suitable place for an industry is the key to success. Different factors for the selection of the site are availability of the land, labor, raw material, power and transport facilities and nearness to the market. Type and size of industry should be decided by the market study, quality and price of other product with which proposed item be in competition. Demand and supply of position of the product should be before selecting the type of industry. Owner should make himself conversant with all acts, rules of central and state governments etc.

1.2.3    PREPARATION OF SCHEME: After deciding the product to be manufactured and the place of industry , a detailed scheme is prepared .this scheme include number of machines ,their approximate cost, requirements of land and building ,number of workers and other staff ,their salaries and estimated production cost ,expected profit, proposed  factory layout and plant layout.

1.2.4    1.3 SOME FACTS ABOUT SSI: Small scale industry provides employment. SSI Sector in India creates largest employment opportunities for the Indian population.

However for the six years the graph is shown as below:

·        Small Scale Industry increases production level in country. The small scale sector has grown rapidly over the years. The growth rates during the various plan periods have been very impressive. Form the following graph this can be understood.

CHAPTER 2

ENTREPRENEUR

Entrepreneur is the owner of the business who contributes the capital and bears the risk of uncertainties in business life. He organizes, manages, assumes the risks and takes the decision about the enterprise. He takes all the steps to establish undertaking, coordinates the various factors of production, and gives it a start. He should be able to evaluate, business, opportunities, together all the necessary resources and ensures the success of the enterprise.

2.1 CLASSIFICATION OF ENTREPRENEUR:

Entrepreneur views are broadly classified into three groups:

·        Risk bearer

·        Organizer

·        Innovator

2.1.1  ENTREPRENEUR AS A RISK BEARER: According to Richard Cotillion, a rich man living in France, was the first who introduced the term entrepreneur as an agent who buys the factory production at certain price in order to combine them into product with a view to selling it at certain price. He illustrated the framer who pays out contractual income, which is certain to landlord, labour and sells at price that is uncertain. Thus they too are risk bearer agent of production. Uncertainty is defined as the risk which cannot be insure against and incalculable.

2.1.2 ENETREPREPNUER AS AN ORGANIZER: According to Jean-Baptize, Entrepreneur is a function of co-ordination, organization and supervision. According to him, an Entrepreneur is one who combines the land of one, the labor of another, capital of one another and thus produces product. By selling the product in the market he pays interest in capital, rent on land, wages to labor and what remains in his profit.

2.1.3 ENTREPREUER AS AN INNOVATOR: According to Joseph who has introduced new combination of factors of production. He said, it may occur in any one of the following five forms:

1.     The introductions of new product in market.

2.     The instituting of new production technique, which is not yet tested by experience in the branch of manufacture concern.

3.     The opening of new market into which the specific product has not previously entered.

4.     The discovery of new source of supply of raw material.

5.     The carry input of new form of organization of any industry by creating of monopoly position or breaking up of it.

2.2 CHARACTERISTICS OF AN ENTREPRENEUR:

An entrepreneur should have following characteristics:

·        Desire of high achievement.

·        Hardworking, willingness

·        Highly optimistic

·        Independence

·        Foresight

·        Good organizer

·        Innovative

·        Energetic

·        Flexible

·        Knowledgeable

·        Resourceful and should be able to take initiative.

2.3   FUNCTIONS OF ENTREPRENEUR:

The function of an entrepreneur is as following:

·        Idea generation

·        Determination of business objectives

·        Product analysis and market research

·        Determination of form of ownership of organization

·        completion of promotion facilities

·        Raising the necessary funds

·        Proper use of machine and material

CHAPTER 3

FINANCIAL REQUIREMENT

Since Independence Government of India has been giving all possible encouragement to SSI. A number of organizations have been set up by the Government of India to provide assistance and incentive to small scale industries. These packages of assistance are provided to SSI by a large number of organizations operating at national and State Level. Development programs are being carried out at two levels:

1.     National level

2.     State level

Agencies, which work at National Level, are: -

·        Small Scale Industrial Board (SSIB)

·        Small Scale Industries Development Organization

·        National Small Scale Industries Corporation

Agencies which work at State Level are:-

·        State Directorate of Industries

·        District Industrial Centre (DIC)

·        State Small Industrial Corporations (SSIC)

·        State Financial Corporations

·        Commercial Banks

·        Small Industries Development Bank of India (SIDO)

 

3.1 DEVELOPMENT PROGRAMMES AT NATIONAL LEVEL:

3.1.1 SMALL SCALE INDUSTRIAL BOARD (SSIB): It is all advisory body and comprises State Government Ministers Offices and representatives of several Institutions and associations. Its functioning is to plan, advice and coordinate the activities of Central and State Government. As such it does not render direct help to entrepreneurs. However, it helps the Government in involving new policy and programme for small scale sector.

3.1.2 SMALL SCALE INDUSTRIES DEVELOPMENT ORGANIZATION (SSIDO): Its Headquarter Nirman Bhawan, New Delhi headed by the Development Commissioner (SSI) has a network of Small Industries Service Institute (SSIs) one in each State which helps in economical, technical, industrial information service, management consultancy services, training and marketing etc.

3.1.3 NATIONAL SMALL SCALE INDUSTRIES CORPORATION (NSSIC): Its headquarters at New Delhi and Regional Offices at Kolkata, Mumbai, Chennai, Guwahati etc.

·        FACILITIES PROVIDED:

1.     Supply of machines and equipment on hire purchase

2.     Distribution of scare raw material imported components.

3.     Marketing assistance

4.     Assistance to SSI in securing orders for railway and defense

5.     Operating a credit guarantee scheme for those units which are registered within.

3.2 DEVELOPMENT PROGRAMMES AT STATE LEVEL:

3.2.1 STATE FINANCIAL CORPORATIONS: Almost every state has its own financial corporation to provide machines and long term loans to small and medium scale industries. Amount of loan varies from Rs. 5,000 to Rs. 6, 00,000 and these loans are repayable in equal installments spread over a period of 10-12 years. Important schemes of financing SFC are

1.     A loan scheme for financing of village and cottage industries, under this scheme they are financed to the extent of Rs. 25,000 and the interest rate is very low.

2.     Assistance to tiny units-these grant assistance up to Rs. 2.00 lakhs.

3.     Scheme for technical entrepreneur-in order to encourage self employment these corporations provide financial assistance up to Rs. 2.00 lakhs at very low interest rate to such technical entrepreneurs who have acquired a diploma or degree in any discipline of engineering.

4.     Loans to hotel industry.

5.     Scheme for SC/ST-Grant financial assistance to SC/ST entrepreneurs at a nominal margin such rates are charged at the rate of 10%

6.     Scheme for physically handicapped-these provide financial assistance up to Rs.3.oo lakhs at a rate of 10%.

3.2.2 COMMERCIAL BANKS: SBI and its subsidiary banks and other Nationalized banks provide liberal term loans and working capital to small scale entrepreneurs and these loans are advanced for purchase of machine and material and to the technical entrepreneurs to encourage self employment.

Specialized institutes like-Central Institute of Tool Design. Hyderabad, Central Tool  Room, Ludhiana and Kolkata, Central institute of Hand Tools Jalandhar, Institute for Design of Electrical Measuring Instruments (IDEMI) Mumbai, Integrated Trading center, Nilokheri, National Institute of Small Extension, Hyderabad and National Institute for Entrepreneurship and Small Business Development. They conduct special courses, programmes, workshops, training programmes for the benefit of small scale industries.

3.3 CREDIT SUPPORT:

Credit is the prime input for sustained growth of small scale sector and its availability continued to be a matter of concern. To provide credit support to the various SSI units various policies have been formulated by the GOI. Various institutes like SFC, SIDC, NISC, and SIDBI are providing financial support to various SSI units.

OVERVIEW OF THE STEPS TAKEN BY THE GOI IS:-

1)    Composite loans limit raised from Rs. 10 Lakhs.

2)    In the National equity fund scheme (NEF) the project cost limit has been raised from RS. 25 lakhs to RS. 50 Lakhs.

3)    Soft loan limit restrained to 25% of the project cost.

4)    Task Force is appointed by the Department of Economic Affairs to suggest revitalization/restructuring of the State Financial Corporation.

 

 

CHAPTER 4

MARKETING

 

4.1 CONCEPT OF MARKETING:

Studies reveal that different organizations have different perceptions of marketing and these different perceptions have led to the promotion of different concepts of marketing. It is found that at least four distinct concepts of marketing have guided and are still guiding terms. They are:

·        Exchange concept

·        Production concept

·        Product concept

·        Sales concept

We will discuss these concepts in detail as below:

4.1.1 EXCHANGE CONCEPT: The exchange concept of marketing as the name indicates holds that the exchange of a product between the seller and buyer is a central idea of marketing. But a proper serutiny of the marketing would readily reveal that marketing is very much broader than exchange. The other important aspect of marketing such as concern for the customer, the generation of the venue satisfaction, the creative selling and integrated action for serving the customer get completely overshadowed in this concept of marketing.

4.1.2 PRODUCTION CONCEPT: According to the production concept marketing is a merely related to production. They believe that marketing can be managed by managing production. The concept holds that consumers would as a rule support these products that are produced in a great volume and allow unit cost organization voting for this concept are influenced by a drive to produce all that they can. They do achieve high production efficiency and a substantial reduction in the unit cost of production. Yet they often do not get customers as they expected. Customers after all are motivated by a variety of considerations in their purchases. Easy availability and low cost are not the only parameters governing the customers buying action and the production concept thus fails to drive as the right marketing policy for the enterprise.

4.1.3 PRODUCT CONCEPT: The product concept is somewhat stiff form the production concept whereas the production concept seeks to win markers and profits v/a high volume of production and low unit cost of production. The product concept seeks to achieve the same result via product excellence, improved products, new products and ideally designed and engineering products. It also places emphasis on quality assurance. Organizations that subscribe to the product concept of marketing believe that consumer goods automatically vote for products of high quality they spent considerable energy. Time and money on research and development brings in a variety of new products. They do not bother to study the market and the consumer in depth. They get totally embraced with the product and almost forget the consumer for whom the product is actually meant. They fail to find what the consumers actually need and what they would gladly accept.

4.1.4 SALES CONCEPT: The sales concept maintains that a company cannot except its products to get picked up automatically by the customers. The company has to consciously promote and push its products heavy advertising, high power personnel selling, large scale sales promotion, heavy price discounts and strong publicity and public relations are the normal tools used by the organization that rely on this concept. Evidently the sales concept too generates marketing myopia just as a exchange concept, production concept and product concept. It leads to a wrong or inadequate understanding of the market and consequently a total failure in the market place.

4.2 IMPORTANCE OF MARKETING TO THE SOCIETY:

1.     Marketing helps to achieve, maintain and raise the standard of living marketing brings new variety of useful and quality goods to the consumer and better marketing gives soon for mass production.

2.     Marketing increase employment opportunities.

3.     Marketing helps to increase national income.

4.     Marketing is a connecting link between the consumer and the producer.

5.     Marketing helps to maintain economic stability. Economic stability is the sign of any efficient and dynamic economy and economic stability is maintained only when there is a balance in supply and demand. If production is more than demand the access goods cannot be sold at acceptable prices than the stocks of goods would be picked up and there would be glut all the market resulting fall in price. Similarly, if production is less than demand prices will shoot up resulting in higher prices. In such a situation marketing maintains the economic stability by balancing production and consumption.

4.3 STEPS IN MARKETING MANAGEMENT:

1.     Product Planning

2.     Sales Forecasting

3.     Pricing Policy

4.     Distribution Strategy

5.     Role of Advertising (Personnel Selling)

6.     Quality

We will discuss now in details as below:

4.3.1 PRODUCT PLANNING: Product planning may be defined as “the act of marketing out and supervising the search. Screening, development and commercialization of new products, modification of existing lines”.

Product planning involves three important considerations:-

1.     The development and introduction of new ideas

2.     The modification of exiting lines as may be required in terms of changing consumer’s need and preferences.

3.     The discontinuance of elimination of marginal or unprofitable products.

4.3.2    SALES FORECAST: A sales forecast is an estimate for the amount or unit sales for a specified future period under a proposed marketing plan or programme. As defined by the American Marketing Association it is “an estimate of sales in physical units for a specified future period under a proposed marketing plan or programme and under an assumed set of economic and other forces outside the unit for which the forecast is made.

Marketing of a proper sales forecast requires an assessment of:

1)    The outside uncontrollable force likely to influence the company sales.

2)    The internal proposed changes in the marketing strategies and tactics of the company which are likely to affect the sales.

Sales forecast can be for a specified product line or it can be for a market as a whole or for any portion of it.

According to the time period, the sales forecast can be divided under three types:

1.     SHORT RUN FORECAST: Which generally extends from a few weeks to about six months or at most one year in future. This is mostly done by companies as day-to-day forecasts for their production control needs and to plan for long term financial needs.

2.     MEDIUM RANGE FORECAST: Which extends from one year to about four years into future. This type of forecasting is important for

a)     Estimating profits, budgeting expenses etc,

b)    Determining dividend policy

c)     Deciding rate of maintenance expenditure

d)    Determining schedule of operations.

3.   LONG RANGE FORECAST: extending to at least five years into future and in case we of really large organizations are extending over a longer period up to ten years or even more.

It is useful in the following ways:-

1)    Anticipating the magnitude and timing of capital expenditures required for new facilities in the future.

2)    Determining probable trends and range of cash inflows from sales.

3)    Estimating companies long range personnel needs.

4)    Highlighting future problems.

4.3.3 PRICING POLICY: - Pricing is a very critical decision. Pricing decisions are not easy to make. Hence sound pricing policies must be adopted to ensure that the organization secures satisfactory profits. For pricing decisions a marketing manager has to be familiar with economic concepts useful decisions. He has to consider various pricing factors which influence pricing apart from costs such as the customers characteristics, the economic product characteristics, competitive environment and Governmental control wherever applicable. The price of the product materially affects the demand for it as well as the organization competitive ability for expenditure if the quality of the product is to be improved this may be possible only if the customers are willing to pay a higher price for it. Besides, if the product is not properly priced there might be reluctance from the channels of distribution.

4.3.4 DISTRIBUTION STRATEGY: Distribution may be defined as an operation or a series of operation, which physically bring goods manufactured or produced by only particular manufacturers into the hands of the final consumers to the users.

A distribution strategy consists of distributing or sub-dividing the total products of a manufacturer on a geographical basis to various specific markets. There may be a state market, a National Market or even a world wide market for the production while defining a strategy we have to deal

with two aspects. First, is the organizational aspects, it is concerned with how and through what channels we should distribute. For this general marketing policy is responsible for deciding the various channels we should distribute. For this general marketing policy is responsible for deciding the various channels for distribution. Secondly, is the operational aspect of distribution or the physical distribution, it is concerned with moving of goods from one place to another, including the warehousing storage and transportation costs as well includes.

4.3.5 ADVERTISING: To counter the markets at National and International level the GOI set up various institutes like:-

1)    Export Credit Guarantee Corporation Ltd. (ECGC)

2)    State Trading Corporation. (STC)

3)    Trade Development Authority.

4)    National small Industries Corporation.(NSIC)

CHAPTER 5

ABOUT PRODUCT

5.1  LOCATION OF UNIT                :  Br.MSME-DI

                                                                           W.B.S.I.D.C Industrial Estate

                                                                            J.P.Avenue, Durgapur-12

                   

           

5.2  NAME OF PRODUCT             :    Ceramic Glazed Wall Tiles

         

5.3 INTRODUCTION:

This project envisages production of Ceramic Glazed Tiles which is having a very bright prospect in bathrooms and kitchen in modern housing and in AnalyticalLaboratories and toilets attached to Railway stations. Due to the liberalizedeconomic policy followed and encouragement by Govt.of India future prosperity ofthis product in the eastern zone is obviously bright.Moreover there is not a singleMSEs in manufacturing ceramic glazed tiles in total Eastern Region which has avast demand of this product.

5.3USES OF CERAMIC GLAZED TILES:

Ceramic Glazed tiles are made of porous body with a coating of white or coloredGlaze. These are used extensively in the Bathrooms, Kitchen in modern buildingsand in Hospitals and Analytical Laboratories, Toiletries attached to Railwayplatforms. This is because of this products have properties like good resistance toweather and chemicals, having high strength, hard, glossy surface with differentcolors and pleasing appearance. In the near future the chances for replacing theseitems by other materials look very bleak. These tiles are rather cheap, easy toclean, have more life and are available in pleasing colours.

5.4MARKET POTENTIAL:The market of ceramic glazed Tiles are very bright since its demand is increasingat a faster rate.The reasons are not far to seek.The improved living standardcoupled with good economic situation along with supporting Govt. policies for housing sector speak itself for the demand for these products. Side by side population growth is also creating a positive demand position of these products. These items form an essential and integral part of consuming sector like housing educational and research institutions, hospitals, Industries, hotels, restaurants ,cinema halls and other public places. The demands of these products also increase by the need of renovation works of the old above similar buildings. The housing Development Finance Corporation and other Govt.Corporations and Banks for financing housing will go a long way for the demand of these products.The private sector which accounts for the lion’s share of the investment in housing and construction is bound to increase further.Further Govt. of India as well as State Govt.is taking more care for the up-keeping of rural sanitation and water supply systems which will indirectly influence and increase the demand of ceramic glazed tiles. Further during the last few years before global economic recession the exportopportunities of these tiles from Middle East and Developing countries was very encouraging and hopefully after the recession export opportunities of these tiles will come back.At present there are over 13 Medium scale enterprises and 60 small

scale enterprises are in this field but there are no enterprises in Eastern and North Eastern area. The units that register EM-II Under small scale Enterprises will go on enjoying the prevailing State Govt. Incentives and Central Govt. Incentives as pernew Industrial Policy 2006.Considering these opportunities new generation entrepreneurs could think of manufacturing this products” Glazed Ceramic Tiles”

5.5QUALITY CONTROL AND STANDARDS:

The raw materials are tested before taken into use for production and after the

result is satisfactory they are used .During the manufacturing process quality is

checked at the times of grinding ,mixing and pressing .Finally finished products

are selected at random and tested to ascertain its asset values with the help of

Modulus of Rupture test(MOR), Warpage, Apparent porosity ,Bulk density,

Crazing test, Scratch Hardness test on a regular basis as per BIS specification.

The standards being followed while making Ceramic Glazed Wall Tiles are:

IS : 777-1970 –Glazed tiles

IS :2840-1965 –China clay for ceramic Industry

IS :4589-1979 –Plastic clay for Ceramic Industry

5.6 MANUFACTURING PROCESS:

The raw materials like local clay,Chinaclay,Ball clay ,Wollastonite chips and pitchers are mixed and ground thoroughly to form an uniform slip. They are unloaded in an agitator. The slip is screened, magnetized and kept in agitating tank with addition of required deflocculants . The material is then passed through filter press to get rid of soluble salts to make a plastic body.The plastic body is dried in a dryer to get the dried mass of 5-6 % moisture.The dried mass is subsequently fed into a pan mill. The output of the pan mill is stored in vertical silos.The mixture is now ready for pressing tiles.The pressed green tiles are stacked on the kiln car in a stack of 3 ft.height and dried by using hot waste air from the kiln. The green tiles are dried for 20 hrs.The dried tiles are pushed along with the kiln car and allowed for firing for 20 hrs.The outputs are known as Biscuits. The hot tiles at above 250- 300C are allowed to cool in nature normally.The cooled tiles when come at normal room temperature 30-40C are screened through online sorting followed byHammer test and Brushing,water spraying and Glazing.Then the Glazed wares areloaded into refractory cassettes on an endless moving conveyor.The cassettes are loaded onto Glost Kiln car and allowed for firing at a temperatureof 1040C for a cycle of 18 hrs. The cooled tiles are unloaded from the cassettes andallowed for online inspection. The tiles are checked into 1sti.e Prime,2nd ascommercial grade,3rdas Reject Variety. After sorting the tiles are packed andstripped and stamped and sent to stockyard. A single pack of tile weighs 16 kg and ready for sale

5.7 POLLUTION CONTROL:Glaze tile has a share in the present Environmental Degradation. So it is advisableto get NOC from Pollution Control Authority as per statutory norms. In this project it would be better if the installed chimney height is of 30 ft and all the machineries are fitted with pollution arresting measures.

5.8ENERGY CONSERVATION:

Considering the fuel reserves and its spiraling price it is essential to adopt energy conservation system by the entrepreneur. The efficiency of a furnace will dependon how efficient the combustion system is and secondly how best the generated heat is utilized.Energy conservation could be achieved through following process:

1) Complete combustion with minimum excess air.

2) Proper heat distribution.

3) Operating the kiln at desired temperature.

4) Reducing heat losses from the openings.

5) Minimizing wall losses.

6) Waste heat recovery from fuel gasses and utilization for Drying Tiles

7) Control of Chimney draught and kiln pressure

8) Use of lubricants and proper maintenance

So the efficiency of a kiln will depend on how efficient the combustion system is and secondly how best the generated waste heat is utilized .So, it is always recommended that standard and good quality of fuel should be used.

CHAPTER 6

COST ESTIMATION  AND FINANCIAL ANALYSIS

6.1 PREOPERATIVE EXPENSES:

6.2 DESCRIPTION OF LAND AND BUILDING:

6.3 LIST OF PLANT AND MACHINERY:

Packing ,Forwarding ,Insurance, Frieght @15% Rs.14,92,000/-

Erection and Installation of Shuttle kiln Rs.13,00,000/-

Electrification and Installation & Security deposits Rs. 17,00,000/-

Generator 125 KVA 02 nos Rs.14,00,000/-

Cost of Transformer Rs.8,50,000/-

Moulds and Assembly Rs.7,50,000/-

Pollution Control Equipments Rs.6,00,000/-

                                    Total Rs.80,92,000/-

6.4 ASSETS AND OTHER DETAILS:

6.5TOTAL FIXED CAPITAL ( AMOUNT IN LAC):

6.6.SALARIES AND WAGES PER MONTH:

6.7.RAW MATERIALS PER MONTH ( IN RS.):

6.8.UTILITIES AND FUEL PER MONTH:

6.8.CONSUMABLES PER MONTH:      

Total Capital Investment :

Total Fixed Capital Rs.296,19,200/-

Working Capital Requirement Rs.57,42,500/-

                   Total : Rs. 353,61,700/-

6.9.MANUFACTURING COST PER MONTH :

6.10.SALES PROCEEDS PER MONTH :

@ Rs.19,000/-M.T. = Rs.36,00,000/-

Gross Sales Proceeds per annum = Rs.432,00,000/-

Net sales per annum (less excise) = Rs.378,00,000/-

Profit per month = Rs.10,13,000/-

Profit per annum = Rs.121,60,000/-

Return on sales = 28.15 %

Return on Investment = 34.30%

Break Even Analysis:

Contribution = 199.36 lacs

Variable cost :Sales – contribution = 378-199.36 =178.64 lac

6.11.FIXED COST PER MONTH :

Salary and Wages (40%) Rs. 32,000/-

Utilities (20%) Rs. 1,21,000/-

Other Expenses (25%) Rs. 23,000/-

Depreciation Rs. 1,93,000/-

Interest On Term loan Rs. 2,79,000/-

Total Rs. 6,48,000/-

Fixed cost per annum Rs. 77.76 lacs

Break Even Sales (BES) = F/(C/S) = 77.76/ (199.36/378) =77.76/0.527

= 147.55Lacs or 39% of net sales

6.12.DEPRECIATION ANALYSIS :( AMOUNT IN LACS)

CHAPTER 7

PERFORMANCE ANALYSIS

7.1.PROJECTED BALANCE SHEET:

7.2.ASSETS:

             

7.3.INTERNAL RATE OF RETURN (IRR):

7.4.LIST OF SUPPLIERS ADDRESSES FOR:

Plant and Machinery :

1) M/s.Galaxy Conveyors Pvt.Ltd., 30 AhiyaComm .Centre,Gondal Road, Rajkot ,

Pin :360002

2) M/s.Neptune Engineering Co., 252, GIDC ,IndustrialEstate,Phase:II,

ModheraRoad,Dediasan (Mehsana),India 384002

3) M/s.Ghosh Engineering Works, Gohramora,Sreerampore,Hooghly,W.B

7.5.RAW MATERIALS:

1). J.K.Minerals, Station Road,Janshi

2). Golab Chand Kotcher,AjmerRoad,Bikaneer

3). Plastic Clay and China Clay; Md.Bazar,Birbhum,W.B.

7.6.RESOURCE CENTRE OF TECHNOLOGY:

1. Br.MSME-DI,Govt.of India,J.P.Avenue,Durgapur 12, W.B

2. Central Glass and Ceramic Research Institute,Jadavpur,Kolkata,

3. Govt. College of Engg. & Ceramic Technology, A.C.BanerjeeLane, Kol 10