1. The document provides details about starting a tray manufacturing business, including production, marketing, and finance departments.
2. Key aspects covered include the selection of Junagadh as the business location, implementation schedule, machinery and production process details, marketing strategy focusing on quality and price, and fixed capital requirements including land, building, machinery, and preliminary expenses totaling Rs. 2440000.
3. Working capital needs are also summarized, including raw material, salary, utilities, and other expenses amounting to Rs. 245000, Rs. 43440, Rs. 7000, and Rs. 11500 respectively.
4. INTRODUCTION
It is a fact that any aim or target stays behind each.
Activities performed by the human being are a bundle of desire and this
creates curiosity in their mind. It was one of the dreams of my heart to
make the business plan on related to kitchenware item.
With the change in environment and technology,
people’s routine life also changed. Now in days in people have not such
a time for any work so they try to avoid that task which takes more time
for solution of this new kitchenware items come into existence.
Trey full into this category because it is very useful
for supply of tea, water, snack, coffee, etc. it is not possible without trey
to give all above items simultaneously the guest. It is easily available in
the market with cheap rate.
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5. PROJECT AT GLANCE
1. Name of unit :- Om Tray
2. Address for communication :- 40 Dolatnagar society,
Dolatpara,
Junagadh-362037
3. Type of unit :- small scale industry
4. Form of organization :- Partnership firm
5. Main product :- Tray
6. S.S.I. Register No. :- with G I DC Junagadh
7. Subsidies register no. :- with GI D C Junagadh
8. Owner’s name & address :- Javiya Chandni A.
4ODolatnagar society,
Dolatpara,
Junagadh-362001
9. Raw-material required :- Plastic-HPS
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6. PROMOTERS BIO-DATA
PARTNER-1
Name :- Javiya Chandni A.
Address :- 40Dolatnagar society,
Dolatpara,
Junagadh-362001
Age :- 22 years
Qualification :- M.B.A.
Experience :- 2 Year
Financial Contribution :- 50%
Duties and Responsibility :- Managerial
PARTNER-2
Name :- Viramgama Dhara R.
Address :- 41 Dolatnagar Society,
Dolatpara
Junagadh-362001
Age :- 20 years
Qualification :- B.B.A.
Experience :- 1 Years
Financial Contribution :- 50%
Duties and Responsibility :- In area of production
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8. INTRODUCTION
My main product tray is the latest in trend it is uses in
different tags. Some of the brands of the tray like as cello, standard, U-
nic, A-one, reachest, etc. They are used in different ways. Some
different trays are as under.
Tea Trey
Water Trey
Launch Tray
Cold Drinks Tray
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9. JUSTIFICATION OF LOCATION
The selection of an appropriate location enables the
industry to operate smoothly and with minimum cost wrong location
leads to wastages of efforts and talents of promoters. With consequent
uncertainty in results. The location of a plant has a great on the success
of failure of its operation. If selection of the site is not proper, then the
money invested in the factory building, plant & machinery etc. will be
wasted and thus leading to organization losses further the cost of
transferring. The location from one place to and then would prove to be
a costly affairs and causes problems which cannot be solved.
Junagadh is proper in this respect. The location is quite
suitable and inappropriate, in all respect for our product; following are
the favorable point, which provides evidence for aforesaid statement.
1. Land & Building:-
It is prime need for the plant establishment wrong
selection of land will become dangerous building also built as per the
process layout of the plant. In Junagadh land will be available at
cheaper rate in GIDC areas.
2. Manpower:-
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10. For production, we require workers at cheaper rate, when
labor costs are varied an industry decimates from its transport location
in promotion to the size of its labor co-efficient. In Junagadh, we can
get the disadvantage of skilled labor and unskilled labor with reasonable
rate.
3. Transportation:-
An industry is likely to be drawn first to these sites where
transparent facilities are available at minimum cost, both in the case of
raw material and the places where the products can be marketed. As we
know that Junagadh is a big city we can easily all the transportation
facilities both by road and sail connection.
4. Electricity:-
Electricity is important as blood in the factory without
electricity best manned plants become useless. So that no such problem
of electricity because in all the areas it is available easily.
5. Water:-
If man cannot live much without waters than how machines
can? In all the production process in Junagadh, Municipal Corporation
provides water to the factory and nearby Junagadh. There is a dam also
so that water supply is become favorable.
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11. 6. Communication:-
Communication is the link between producer and customer. If
there is some mistake in this link idea or message cannot transferred
from one party to another. As Junagadh is mega city communication
facility like cellophane, internet, etc. are easily available with cheaper
rate.
7. Government incentives:-
The government has promoted the small sector by introducing
policy measure so as to improve vitality and growth and to contribute its
mite fully to the Indian Economy Government provides promotional
measures like small scale industries board; assistance programmed
positive measures like credit grantee financial assistance technical
assistance and some other measures.
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13. IMPLEMENTATION SCHEDULE
The major activities in the implementation of the project unit
have been listed here.
Preparation of project report selection size and SSI Reg. No.06
months
Procurement of finance, construction of factory building,
procurement of machinery, requirement of staff etc.
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14. PRODUCT DETAILS
Details about Machinery:-
Machinery is needed for all the production process. As
modern as the machinery, promoter can get as much advantage of it. The
details of machinery for the production tray as under,
1. Injection Molding Machine:-
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15. This is main machine help a lot in the production. The cost of
this machine is near about 1000000 the capacity is 150 gram. The
machine need 16 nears power for handling. These machine 2 operators
and 4 to 5 helpers are required.
2. Cooling Motor:-
The cooling motor is needed at the time of production. These
help the machine for remaining cool by supplying water. The cost of
cooling motor is 5000 approximately.
3. Cooling Tower:-
The cooling tower is one the part of cooling motor, it
regulator. The financing of cooling motor, the cost of cooling tower is
Rs. 1000 about.
4. Dye:-
It is the important part for machine. It is prepared different shares as per
the requirement. As per the product need it is cost may be 50000 to
100000.
5. Grinder Machine:-
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16. The task of grinder machine is to grind the wastage of the parochial. So
that it will take for further in protection the wastage the cost of this is
near about Rs.10000 the power needed for it is house power.
PRODUCTION PROCESS CHART
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18. They is the kitchen ware item so day to day the use of this is
done. The major component for it is plastic balls-hips. The plastic color
is used as per the requirement for the productions of 1200 kg raw-
material requirement are as under.
Quantity Size in gram Time spend
1000 kg 250 gm 28 days
100kg 75 gm 25 days
1. Raw-material:-
The tray is a plastic product the raw-material required in
form of plastic balls. The raw-material get form one of the biggest
company reliance.
2. Inspecting:-
After receiving the raw-material inspection is done on it
through it is standardize products, inspecting is necessary to remove the
further loss, here preventation is better than sure.
3. Melting:-
After inspecting the raw-material it is mated in the machine.
The machine’s capacity is 500kg in 1 day the operator is required.
4. Recycling:-
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19. Recycling is also important in recycling the wastage come through
melting is proceeded again it make in the raw-material. In this the ratio
of wastage and raw-material should be 2.25 kg.
5. Compressing:-
In compressing the mpther is used for spread on the trey one to no zed
size meter is required for it is the work of art so that saved workers is
required for it.
6. Inspecting:-
After all the above process. Inspecting is done. In is related to the
finished goods. In any product is not fulfill the required standard of
quality it is rejected.
7. Packaging:-
After inspecting packaging of the product is done first of all a single
price is packed then all those are packed in the cartoons one cartoons
contain 500 pieces of trey.
8. Dispatching:-
After packing the product is than dispatched through different channels
of distribution to ultimate endues.
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21. INTRODUCTION
Marketing now a day has becomes important and complex
then before it is very essential to here a sound marketing system, which
includes well selected distribution channel well worked attractive
advertisement, reasonable as well as affordable price & above all a good
quality product.
Quality:-
Our maximum emphasis is on quality. The quality of our product is not
only competitive because we known that more competitive is not
sufficient for reliability we always to be one step ahead from others.
Price:-
The price of our products is affordable to middle class people who are
our target market our firm understand. “Value for money” very well and
do high sales it low marines is our motto.
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22. MARKET POTENTIAL
Liberalized economic policies implemented by government of
India under able leadership of prime-minister and finance minister has
given new life sprit and boasted up various industry is plastic industry
moreover, due to increasing awareness and watch fullness of general
public. The use of plastic products increased considerably during recent
years. And at present there is very high market potential for such type of
products.
Now a day plastic products like trey, coconut cutter, boxes
chilly cutter, etc. have got and excellence market potential, people are
turning towards plastic products and using more and more. These are
increasing demand in both urban and rural areas. Although there is
tremendous potentially of raw-material for the products in the regions.
Thus there is tremendous potential for development of plastic products
producing in their regions.
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24. INTRODUCTION
The finance function is the main function of any business
firm without finance other functions are not possible, financial
management means a process of collecting utilizing and managing. The
fund effectively and economically.
In any business the finance is done the worth of blood
without this all others have no importance and finance is very dynamic
field. In finance things change on daily basis, because of the growing
importance of money. The importance of finance functions has also
increase.
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25. FIXED CAPITAL DETAILS
(A)Land:-
Sr. particular Area Rate Value
no.
1. Open land 400sqMt. 200sqMt. 80000
2. Land development exp. 1000sqMt. 650sqMt. 650000
3. Other expenses 100sqMt. 200sqMt. 20000
Total Value 750000
(B)Details of Machinery:-
Sr. No. Particular Value
1. Injection Molding Machine 500000
2. Dye 100000
3. Cooling water meter 10000
4. Grinder 8000
5. Compressor 12000
6. Cooling tower 10000
Total Value 640000
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26. (C) Building
Sr.no. Particular Area Rate Value
1. Raw-material Store 300Sq Mt. 500Sq Ft. 150000
2. Godown Store 100Sq Mt. 500Sq Ft. 50000
3. Process Area 600Sq Mt. 500Sq Ft. 300000
4. Finished Goods Store 200Sq Mt. 500Sq Ft. 100000
5. Machinery Spare 50Sq Mt. 500Sq Ft. 25000
6. Office Room 100Sq Mt. 500Sq Ft. 50000
7. Staff Quarters 200Sq Mt. 500Sq Ft. 100000
8. Water tank 100Sq Mt. 500Sq Ft. 50000
9. Other 50Sq Mt. 500Sq Ft. 25000
Total Value 1700Sq Rs.500 per 850000
Mt. Sq Mt.
(D) Preliminary and pre-operating Expenses:-
Sr.no Particular Amt. Amt.
1. Preliminary Expenses 20000 20000
2. Pre-operating expenses
Establishment Exp. 10000
Legal Exp. 15000
Construction Exp. 25000 50000
Total Expenses 70000
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27. (E) Fixed Capital Cost of a Project:-
Sr. no. Particular Value
1. Land 750000
2. Building 850000
3. Plant & Machinery 640000
4. Furniture & Fixtures 190000
5. Others Expenses 10000
Total Value 2440000
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28. WORKING CAPITAL REQUIREMENT
(A) Raw-material:-
Sr.no. Particular Days Quantity Value
1. Plastic Balls (HIPS) 28 days 1000Kg 150000
2. Plastic Balls (PP) 25 days 200 Kg 20000
3. Colour 27 days 1500Lt. 45000
4. Packing 30 days 30000
Total Value 245000
(B) Salary & Wages:-
Sr.no Particular No. of Rate per Value
Person month
1. Manager 1 10000 10000
2. Supervisor 2 3000 6000
3. Skilled Worker 6 2000 12000
4. Unskilled Worker 6 1200 7200
5. Watchman 1 1000 1000
Total before Bonus Salary 36200
+20% Bonus +7240
Total 43440
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29. (C) Utilities:-
Sr. no. Particular Amt.
1. Power 3500
2. Fuel 2500
3. Water 1000
Total Value 7000
(D) Other Expenses:-
Sr.no. particular Value
1. Transport Changes 5000
2. Miscellaneous Exp. 3500
3. Rent 3000
4. Repair & Maintenance 2000
5. Postal & Stationery 1000
6. Telephone 3000
7. Selling Expenses 2500
Total Value 20000
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30. (E) Total working Capital
Sr.no. Particular Amt.
1. Raw-material 245000
2. Salary & Wages 43440
3. Utilities 7000
4. Other Contingent Expenses 20000
5. Interest on Loan 105000
Total value 420440
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31. TOTAL COST OF A PROJECT
Sr.no. particular Amt.
1. Total Fixed Capital 2440000
2. Total Working Capital 420440
Total Value 2860440
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32. SOURCES OF FINANCE AGREEMENT
Sr.no. Particular Own SBI Total
1. Land 350000 400000 750000
2. Building 500000 350000 850000
3. Machinery 340000 300000 640000
4. Furniture 200000 - 200000
5. Working Capital 420440 - 420440
Total Value 1810440 1050000 2860440
Interest (Means of Finance)
Sr.no. particulars Interest Rate Amt.
1. SBI Loan 10% 1050000
2. Own Capital 1810440
Total 2860440
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34. (3) Interest:-
Sr. no. Particular Total Amt. Amt.
1. S.B.I. loan @ 10% 1050000 105000
2. Own Capital @ 10% 1810440 181044
Total 286044
Total cost of production 469044
(4) Profitability Analysis:-
Sr. no. particular Amt.
1. Sales 550000
2. Cost of production 469044
profit 80956
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35. PROJECT SUMMARY
particular Amt. Total Amt.
Total sales - 550000
Cost of production
Raw-material 245000
Salary & Wages 4344
Utility 700
Sales Exp. 2500
Depreciation 20000
Interest 28604
Rent 300
Miscellaneous Exp. 350
Preliminary Exp. 7000
Other Exp. 160246
469044
Gross Profit - 80956
Less: income Tax 30% - 24287
Net profit After Tax - 56669
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36. FUND FLOW STATEMENT
Sources Amt. Application Amt.
Fund from operation 500000 Increase in W.C. 100000
Issue of share SBI 105000 Purchase of 10000
loan Investment
Sale of investment 100000 Machinery purchase 640000
Sale of fixed Assets 885000 Purchase of Land 750000
Total 1500000 Total 1500000
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37. BREAK EVEN ANALYSIS
Particular Amt.
Sales 550000
Less Variable cost
Raw-material 245000
Power 350
Wages 4344
Packing material 20000
Selling expenses 2500
Other expenses 129250
Total variable exp. Contribution 401444
Less Fixed cost
Rent, Taxes, Insurance 11000
Administrative Exp. 8000
Depreciation 20000
Interest 28600
Total Profit Exp. 67600
(Net Profit)Profit Before Tax 80956
-Tax 24287
Profit After Tax 56669
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38. RISK FACTORS & FUTURE PLAN
(A) Risk Factors:-
In this area we find competition everywhere in every field so, it
may be risk factor for one unit,
Fluctuation in material prices may affect the product
In the initial years industry will demand substantial efforts time
and money in exploring market potential.
Apart from this government rules and regulations may affect our
unit adversely in the future.
(B) Future Plan:-
The future plans of the industry are as follow;
To increase the profit of the company
To give maximum facilities to the market
To implement the near technology in the business near future
To launch a new product.
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39. CONCLUSION
I must say that this is a great experience for the student of
.M.B.A. it will enhance the entrepreneur skill among the student. I got
know ledge about the implementation to the production process and to
the selling of the product. I also collect the information about plastic
industry like the same and it was a great experience.
I wish and hope that company get more success and achieve its
all desired goal in near future.
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