suitcase faiz 2-12-11(1)
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A
PRODUCT PROJECT REPORT
ON
PREPARED BY:
Kadri MohmedFaizal YusufmiyaAcademic Year : 2011-12
GUIDED BY:Prof. Gaurav Mehta
FOR PARTIAL FULFILLMENT OF T.Y.B.B.A
SUBMITTED TOSAURASHTRA UNIVERSITY
RAJKOT
SHRI G. H. GOSRANI COMMERCE (ENG. MED.) ANDSHRI D. D. NAGDA B.B.A. COLLEGE
JAMNAGAR
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ACKNOWLEDGEMENT
It is really a matter of great pleasure for me preset this creative and practical work. At this stage, report is an important part of learning and every
entrepreneur prepares it before starting of actual production.
Our college SHRI. D. D. NAGDA B.B.A. COLLEGE deserves special
thanks for giving us the opportunity to undertake this project as part of the
syllabus of T.Y.B.B.A owe my sincere gratitude of PROF. GAURAV MEHTA
without whose guidance and encouragement this project would not have been
possible.
Date:
Place: Jamnagar.
Kadri Mohmedfaizal Yusufmiya
(T.Y.B.B.A.)
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PREFACE
Above said proved holds the importance of practice & action. The field of
management provides practical as well as theoretical knowledge
simultaneously.
As developing country, In India economy contribution of Small Scale
Industries ads it is supportive to big Industries & makes economy to reach
highest of prospering.
The subject Entrepreneurships & Management of Small Business is
included in T.Y.B.B.A. with a view to develop & implement the knowledge in
action. It is essential for BBA student, who wants to become future
entrepreneurs, to get practice from the inception. I have prepared my project
report on STAR LUGGAGE INDUSTRY
I have got a chance to acquire practical knowledge at the time of
gathering. The information about this report.
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INDEX
Sr.
No. ParticularsPage.
No.01 Introduction to S. S. I. 702 Project At a Glance 803 Introduction to the Unit 804 Bio-data of Partner 905 Justification of Location 11
06 Organization Structure 1407 Market Potential 1508 Production Details 1609 Raw-Material Consumed 1910 Raw-Material Suppliers 1911 Machinery 20
12
Production Capacity Schedule 2013 Manufacturing Process 2114 Schedule for fixed Assets 2315 Total Fixed Assets 24
16 Schedule for Required Manpower 2517 Working Capital Requirement 27
18
Total Working Capital 2919 Total Cost of the Project 3020 Sources of Finance 3121 Production Capacity Schedule 3322 Profitability Analysis 3423 Conclusion 36
24
Appendix 375
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25 Bibliography 38
INTRODUCTION OF SSI
In todays era, where global competition exists. There is need for
professional management in every sector.
So, our Finance Ministers and other economists always said that the S. S.
I. is the only base or pillar of the Indian economy. Most of the business carried
out in India is a small scale.
The S. S. I. is enjoying the success of department of economy because it
is the main part of the economy. It also provides the platform and opportunity to
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Registered Office : 11, Golden MarketOpp. Dr. Rathi Hospital,Summair Club Road,Jamnagar.
Showroom Location : Sanjari Complex - A/3,Opp. Hotel President,Nr. Town hall,Jamnagar.
Factory Location : Plot No.101 - STAR,Keshav industrial Estate,Hirji Mistry Road,Jamnagar.
Bankers : Navanagar Co-operative Bank Ltd.
NAME AND ADDRESS OF PARTNERS
PARTNER ( 1 ):
Name : Mr. Faizal Kadri
Age : 21 year
Education Qualification : M.B.A. & B.B.A.
Address : Khojagate, Ali Baug - A,
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2nd Floor, Flat No.11,
Nr. Hajipeer chowk,
Jamnagar - 361001.
Experience : 3 years
Financial Contribution : 50 %
Responsibility : Marketing and Personnel Department
PARTNER ( 2 ):
Name : Mr. Noman Kadri
Age : 27 years
Education Qualification : C. A. & B.Com.
Address : Khojagate, Ali Baug - B,
3nd
Floor, Flat No.15,
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Nr. Hajipeer chowk,
Jamnagar - 361001.
Experience : 5 years
Financial Contribution : 50 %
Responsibility : Production and Financial Department
PROPOSED LOCATION JUSTIFICATION
Location of any unit is the most important and crucial decision because
once the building is constructed and the plant is located then it is not easy to
move and involves a huge amount of Investment. The Industrial location plays
an important role on the success or failure of the industry or unit. But this
decision is affected by many factors.
Location of a business involves a large, relatively permanent investment.
If the site selection is not proper, all the money spent on factory building,
machinery, and their installation will go in waste and a great loss. Choice of 10
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location is done by considering several factors like, availability of raw material,
man power, government policies, and availability of banking, power and
transportation facilities.
The main reasons are as follows : -
As the state Government assisting the industries located in industrial estate
by the way of subsidies for the procuring the assets. It will be helpful in
reducing the capital expenditure.
Exertion from sales tax will be helpful in reducing the price of the product.
It is developing industrial area dew to available of the cheap labours from
nearby village.
Raw material required can be easily transported to the factory due to
proximity to available source of raw material.
Proximity to the market of city which centrally located in Saurashtra.
1. Type of industries available :
Intermediary industry which provide Resin, Fibre, leather,
Fabric, Plastic, handles, Zippers, Machinery & other generalitems.
2. Infrastructural Facilities :
Easy transportation on road of raw materials.
Cheap land rates and adequate availability of land.
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Facilities like water supply, electricity.
Availability of both skilled labour from city and unskilled
labour from nearby villages.
Substantial Market as it is near to city.
Subsidy from government for setting up industry in suburban area.
INTRODUCTION TO THE PRODUCT
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Luggage Industries are working since 2300 years approximately. This
Industry had seen many development and deficits in the past. In the Ancient
time the Luggage had made from Bamboo and other grasses. Then it moved
towards cloth then again moved towards Wood and again moved to Iron and
Steel and at last. It was moved towards plastic.
Since every human moves here and there and they always moves on they
need to carry with him their Daily prior utilities and it is only satisfied with the
Luggage carrier.
Luggage carrier is divided into different type of Names and Brands. E.g.
SUITCASE, BRIEFCASE, HANDBAG, SHOULDER BAG etc.
Just for your Information the Total Turnovers of Luggage Industry in
India is about Rs. 758 crores. So it is the developing Industry and big Industry.And last but not the least it is a type of thing that a child also knows about it.
ORGANISATION STRUCTURE
PARTNERS
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ProductionDepartment
PersonalDepartment
MarketingDepartment
FinancialDepartment
Designer Peons AccountantAssistantManager
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There is Total Rs. 758 crores (approx.) turnover or supply of the Luggage
Industry.
There are the Total demand of Luggage Industry is about Rs. 1700 to Rs.
1800 crores and will be near by it.
But in Luggage Industry market of India have very large gap between the
demand & supply.
In the Luggage Industries of India, there are many Small Scale &
Medium Scale industries and also a Large & Huge Industries.
In this Market, now some foreign companies have come up to India for
capture the market share.
In India both types of Prospects are there. One who prefer the quality and
second who prefer the cost.
Our unit will provides quality product to its Prospects.
This Industry is like a open sky, because. It has a widened scope for
development.
So, our unit will be success in this field by fill the gap and provide the best
Quality Product.
PRODUCT DETAILS
Our Products will be made from mixture of high quality plastic and fibre
with high density so it will be light weight and very strong.
Our product will be as following:
SUITCASE :
Four sizes of suitcase will be available for the small family.
1. 1815
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2. 24
3. 30
4. 36
PRODUCT FEATURES :
Our product has and attractive features which are as follow:
1. STRENGTH:
Our Luggage carriers will be made from high density fibre with mixture of
High quality plastic so it would make the product unbreakable.
2. SAFETY :
In our luggage carriers we would assure 100% guarantee of safety because
it has a secure design and strong frame work so it provides full safety against
theft, fire, Hazardous Chemical, Accident etc.
3. LOCKING SYSTEM :
As per the present age there is an increasing fear of theft. Generally in
other luggage carrier has two similar locks which are ordinary; But in my
product there would be only one central lock with two keys and it would be
totally inside the body of the luggage carriers and it would be made by a special
orders in Punjab.
4. LIGHT WEIGT :
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In the present age, the human has become very comforts demanding, so
we keep an eye on this aspect and we shall make the magically light weight
product with the help of research.
5. NEW DESIGN:
Though, it is an exceptional case we shall give an extra ordinary design,
outlook comfort ness, colour, shape, size and nearly developed exterior
appearance.
6. WARRANTY PERIOD :In the present age, every luggage carrier product gives 1 to 7 years
warranty time to customers. But we shall provide the best quality so we also
would be give attractive 3 years warranty period.
7. MEDIUM PRICE :
At that time, there are Luggage carriers available from Rs. 100 to Rs.
25000 but it depends upon customers beliefs, need status, loyalty etc. weshould provide the medium range for middle class and upper-middle class
because it is a Major community.
8. PRODUCT BY CLASS :
Some of Industry emphases on any preferred class luggage carrier like,
Suitcase, Briefcase, Hand Bag, Trolley Bag, shoulder Bag, Traveler Bag etc.
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But from the beginning we show provide a product class and depth for the
different needs of the different prospectus.
RAW - MATERIAL CONSUMED
Raw material is main part of the finished product. It is always a input for every finished product. There are many types of raw materials in the different
proportion.
RAW MATERIAL SUPPLIERS
(1) PLASTIC GRANULES:
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If someone wants to manufacture and produce something by the some
process, they firstly need machinery because no process can be carried out
without proper machine. Every product and process requires different types of machines.
All types of Machineries will be purchase from the India or Other
Country.
PRODUCTION CAPACITY SCHEDULE
The Installed capacity of our plant will be 80,000 units per annum. But in
the first year only 70% of the capacity we can use. And it will be increase by
10% every year. So, we can use total capacity at the end of fourth year.
MANUFACTURING PROCESS
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STEP : 1
Firstly Plastic granules, resin and fibre will be taken in predecided proportion, and put it in the mixture machine and start the mixture machine and
get the proportion at mixture of the plastic granuals Resin and fiber.
STEP: 2
Then that mixture will be fed in the filter of the plastic infection moldingmachine and the decided die will be fit in the machine and. Machine could be
started. After 110 seconds the machine. Automatically open and molded.
Suitcase will be polished.
STEP: 3
Then these molded parts will be matched with each other as top & bottom
in this stop and fit into each another by the hinges.
STEP: 4
After fitting both the parts, in this step there will be fitting at Tinges
Covers, Mate, Zipper, Lastic, Absorbs, Sponge Sheet, Wheels etc.
STEP: 521
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Then the Suitcase will be come to the locking department. There the locks
will be fit internally which will work centrally and the handler bar will be fit
and go to the quality control department.
STEP: 6
In the quality control department, all the parts of Suitcase will be check and
if it feels ok then it will be sent to packing department.
STEP: 7
In the packing department, the stickers and sign of Name Plate will beattired and the warranty card would be attached and pack it proper.
BRAND LOGO
SCHEDULE FOR FIXED ASSETS
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(D) Preliminary Expenses :
Table:-4. Preliminary Expenses
No. Particular Amount(1) Preliminary & Pre-operative expenses 1,30,000
TOTAL 1,30,000
(E) Total Fixed Assets :
Table:-5.Total Fixed Assets
No. Particular Amount(1) Land & Building 14,00,000(2) Plant & Machinery 26,35,000(3) Other Fixed Assets 8,50,000(4) Preliminary Expenses 1,30,000
TOTAL 50,15,000
SCHEDULE FOR REQUIRED MANPOWER
(A) TOP LEVEL
Table:-6.Top LevelNo. Particular No. of Emp. Salary Amount(1) Manager 1 9,000 9,000(2) Accountant 1 4,000 4,000(3) Designer 1 8,000 8,000
TOTAL 3 - 21,000
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(B) MIDDLE LEVEL
Table:-7. Middle Level
No. Particular No. of Emp. Salary Amount(1) Salesman 3 5,000 15,000(2) Clerk cum Typist 1 2,500 2,500(3) Storekeeper 1 1,500 1,500(4) Supervisor 2 3,500 7,000(5) Assistant Manager 1 4,000 4,000
TOTAL 8 30,000
(C) LOWER LEVEL
Table:-8. Lower Level
No. Particular No. of Emp. Wages Amount(1) Skilled Worker 5 3,600 18,000(2) Semiskilled Worker 5 3,000 15,000(3) Unskilled Worker 10 2,460 24,600(4) Watchman 01 1,600 1,600(5) Peon 2 1,800 3,600
TOTAL 23 62,800
(D) TOTAL SALARY
Table:-9. Total Salary
No. Particular Amount P. M. Amount Per Annum
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(1) Top Level 21,000 2,52,000(2) Middle Level 30,000 3,60,000(3) Lower Level 62,800 7,53,600
TOTAL 1,13,800 13,65,600
WORKING CAPITAL REQUIREMENT
(A) Raw Material Requirement
Table:-10. Raw Material Requirement
No. Particular Rate Monthly Yearly
Rupees Quantity Amount Quantity Amount
(1)Plastic
Granules27,000 5 Tons 1,35,000 60 Tons 16,20,000
(2) Resin 7,000 1 Tons 7,000 12 Tons 84,000(3) Fibre 9,000 3 Tons 27,000 36 Tons 3,24,000(4) Hardware 25,000 0.3 Tons 7,500 3.6 Tons 90,000
(5) Rubber frame 3.50 1,000 Mtr. 3,50012,000
Mtr.43,200
(6) Sponge sheet 18.00500 sq.
Mtr.9,000
6,000
sq. Mtr.1,08,000
(7) Lastic 1.70 2,500 Mtr. 4,25030,000
Mtr.51,000
(8) Wheels 4.001,500
Nos.6,000
18,000
Nos.72,000
(9) Absorber 25,000 0.10 Tons 2,500 1.2Tons 30,000
(10)Handle bar &
Handle 30,000 0.1 Tons 3,000 1.2 Tons 36,000
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(11) Adhesive 22,500 0.2 Tons 4,500 2.4 Tons 54,000(12) Extra exp. 30,000 98,000
TOTAL 2,39,250 26,10,200
(B) UTILITY
Table:-11. Utility
(C) Other Expenses
Table:-12. Other Expenses
No. Particular Monthly Amount Yearly Amount(1) Postage & Stationary. 500 6,000(2) Telephone. 2,000 24,000(3) Consumable Store. 5,000 60,000(4) Advertising. 2,000 24,000(5) Transportation. 4,000 48,000(6) Maintenance. 15,000 1,80,000(7) Insurance. 2,000 24,000(8) Contingency. 2,000 24,000
TOTAL 32,500 3,90,000
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No. Designation Amount
1. Electricity 15,0002. Oil 1,32,000
Total 1,60,800
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(D) Staff & Labour Expenses
Table:- 13. Staff & Labour Expenses
No. Particular Monthly Amount Yearly Amount
(1)Total Wages &
Salaries1,13,800 13,65,600
TOTAL 1,13,800 13,65,600
(E) TOTAL WORKING CAPITAL
Table:- 14. Total Working Capital
No. Particular Monthly Required Yearly Required(A) Raw-Material Requirement. 2,39,250 26,10,200(B) UTILITY. 1,60,800(C) Other Expenses. 32,500 3,90,000(D) Staff & Labour Expenses. 1,13,800 13,65,600
TOTAL 3,85,550 45,26,600
Generally there is the formality of working capital calculation 3 month
because it is standard.
Working Capital for 3 Months = 3, 85,550 3
= 11, 56,650
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TOTAL COST OF THE PROJECT
Total cost of Project is also called as Total investment and it is getting byTotal Fixed Capital + Working Capital for three months.
TOTAL FIXED CAPITAL = 50, 15,000
+ Working Capital (3 Months) = 11, 56,650
TOTAL INVESTMENT = 38, 58,350
SOURCES OF FINANCE29
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(A) SOURCE
Table:-15. Sources of Finance
No. Particular Proportion Amount(i) Owned Capital 50% 20,00,000(ii) Barrowed Capital (S.B.I.) 50% 20,00,000
TOTAL 100% 40,00,000
(B) INTEREST
Table:-16. Interest
No. Particular Interest Rate Amount(1) Interest on owned Capital. 6% 1,20,000(2) Interest on Barrowed Capital. 13% 2,60,000
TOTAL 3,80,000
(C) DEPRECIATION
Table:-17. Depreciation
No. Particular Value of Asset Depreciation Rate Amount
(1) Building. 10,00,000 10% 1,00,000(2) Machinery. 26,35,000 20% 5,27,000
(3) Other Assets. 8,50,000 10% 85,000TOTAL 7,12,000
(D) FIXED COST
Table:-18. Fixed Cost
No. Particular Rs.1. Depreciation on Machinery 5,27,0002. Depreciation on Building 1,00,000
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(G) PROFITABILITY ANALYSIS
Table:-21. Profitability Analysis
No. Particular Rs.1. Sales volume 84,00,0002. Less: cost of prod 44,95,2003. Gross Profit 39,04,8004. Less: Depreciation 7,12,0005. EBIT 31,92,8006. Lees:Intrest 3,80,0007. EBT 28,12,800
Less: Provision For Tax 7,93,8408. EAT (NET PROFIT) 20,18,960
PROVISION FOR TAXATION
100000 = NIL
101000 to 150000 @ 10% = 5000
151000 to 250000 @ 20% = 20000
251000 to ---------- @ 30% = 7, 68,840
7, 93,840
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Above estimated Net profit of our industry will be divided among the two
partners of this unit.
PARTNER - 1
Mr. Faizal Kadri Rs. 10, 09,480
(Profit sharing ratio is 50%)
PARTNER - 2
Mr. Noman Kadri Rs. 10, 09,480
(Profit sharing ratio is 50%)
(A) BREAK EVEN ANALYSIS
B.E.P. = Fixed cost
Fixed cost + Profit
= 20.64,000
28, 29,000 + 20, 18,960
= 50.55 %
(B) RETURN ON INVESTMENT
R.O.I.= E.B.I.T.
33
100
100
100
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Cost of Project
= 31, 92,800
58, 18,150
= 54.88 %
(C) NET PROFIT VOLUME
NPV = Net ProfitSales
= 20, 18,960
84, 00,000
= 24.03%
CONCLUSION
Todays Prospectus is a very much conscious with comfort and
accommodation. The consumption of quality and accommodate product
increases day by day as special image.
The suitcase is demanded in all over world and the fashion trend change
every day in Luggage Carrier. At present take on example of world leading,
Luggage Carrier Producing Company SAFARI, V.I.P., AMERICAN
TOURISTER etc. have launched the, comfort line Products. So out unit also
will be Produce it and it has wide scope & Market.
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100
100
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It indicates future expectation and development of the project according
to proposed project is considered to have better projects.
APPENDIX
LIST OF TABLES
Table
No.Particulars Page. No.
01 Fixed Capital on Land & Building 23
02 Fixed Capital on Plant & Machinery 23
03 Other Fixed Assets 24
04 Preliminary Expenses 24
05 Total Fixed Assets 24
06 Top Level 25
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07 Middle Level 25
08 Lower Level 26
09 Total Salary 2610 Raw Material Requirement 19
11 Utility 2812 Other Expenses 28
13 Staff & Labour Expenses 2914 Total Working Capital 2915 Source of Finance 31
16 Interest 3117 Depreciation 3118 Fixed Cost 32
19 Cost of Production 32
20 Production Capacity Schedule 3321 Profitability Analysis 33
BIBILOGRAPHY
1. Desai Vasant, Project Management, 2 nd Edition, 1999, Himalaya
Publishing House.
2. Kapoor Sudarshan, Marketing Management, 1 st Edition, June 1997, S. K.
Publisher.
3. Chhabra T. N., Principles and Practice of Management, Edition 1997, J.
C. Kapoor for Dhanpat Rai & Co (P) Ltd. Nai Sarak, Delhi.
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***
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