pen ppr.doc

7/28/2019 pen ppr.doc

1/29

1

APRODUCT PROJECT REPORT

ONGood luck pensmfg. Ltd.

PREPARED BY

Hirpara Bipin R.

T.Y.B.B.A.

ROLL NO. : -

EXAME. NO: -

K.K.PAREKH COMMERCE COLLAGE

AMRELI


2/29

Preface

In the final year of B.B.A. programme, every student

have to prepare product project report on any of the product by

assuming that student hin self is an enteprneure. This helps us to

practically know launching of the product by a new firm in

market.

I have prepared product project report on Fountain

Pens and Ball Point Pens

Place: - Amreli Yours Faithfully,

Date: - / /200 (Hirpara Bipin R.)

2


3/29

ACKNOWLEDGEMENT

As a part of our T.Y.B.B.A. program we have to deal

with practical aspect of preparation of product project report.

I fell very happy to present this report. This was really a

challenge for me to prepare this product project report. I express

my gratitude to Prof. M.M.Patel, incharge of B.B.A. department

who have guided me to prepare this report.

Place: - Amreli Yours Faithfully,

Date: - / /200 (Hirpara Bipin R.)

3


4/29

[DEPARTMENT OF B.B.A.]

DATE: - / /200

This is to certify that Mr. Hirpara Bipin R. is a

student of final year B.B.A. has carried out the product

project report as per the syllabus of Saurastra University,

Rajkot. He has prepared product project report under our

supervision and his own contribution for making this report

during the academic year 2007-2008 is appreciated.

Prof. M. M. Patel Prof. H. M. Shah

(B.B.A. Incharge) (Principal)

4


5/29

Contents

Sr. No. Particulars Page No.

1 Project at a glance

2 Promoters Details

3 Introduction And Uses Of The Product

4 Market Potential

5 Production Process

6 Production Capacity

7 Financial Details Of a Project

8 Name and Address of Suppliers

9 Financial Arrangement

10 Profitability of Project

11 Summary

12 Break Even Point

13 Project Prospects

Project At A Glance

5


6/29

Name Of the Unit = Good Luck Pens Mfg. Ltd.

Address = G.I.D.C.Estare.

Jamnagar

Types of the Unit = Partnership Firm

Name Of the product = Fountain Pens Nad Ball Point Pens

S.S.I. Registration No. = Application is made with DDC.

Subsidy Registration No.=Application is made with DIC.

Location of the unit = G.I.D.C.Estate, jamnagar.

Name of Promoters = 1. Hirpara Bipin R.

2. Desai Vipul M.

Promoters Details

6


7/29

Partner:-1

Name :- Hirpara Bipin R.

Age :- 20 years

Address :- To Monpur

Taluka:- Amreli

District:- Amreli

Education Qualification :- B.B.A.

(With Adv. Finance Mgt.)

Division Of Responsibility :- Production And Finance

Contribution :- 50% From profit or loss

Partner:-2

Name :- Desai Vipul M.Age :- 20 years

Address :- Nr. Swaminarayan Temple,

Jasvant gadh Para,

Chital 365620.

Education Qualification :- B.B.A.

(With Adv. Marketing Mgt.)

Division Of Responsibility :- Marketing And Personnel

Contribution :- 50% From profit or loss

Introduction and Uses of the Product

7


8/29

Fountain pens and ballpoint pens are main instrument

used for writing purpose. It is a mass consumption items in each

and every person to remove some illiterate persons.

These are required, due to the rapid growth of

industrialization taking place in the country the demand for

office stationery and allied items is fast increasing.

Fountain pens and ballpoint pens play important role as

a stationery materials. Presently the Govt. emphasis and

encouraging to set up (establish) more and more industries in

backward and rural areas for the purpose of to develop these

areas people and to increase the STD. of living of these common

persons who lives in the remote parts of the country.

Any things in a business, services, education not

possible with out fountain pen and ballpoint pen, so pens are a

mass consumption items and its demand-increasing day today.

8


9/29

Market Potential

With increase in literacy (education) and economic

development of the country the demand for fountain pens and

ballpoint pens is increasing day today. It is essentials items for

each and every person. If a person has no ball pens and

wristwatches, he is not perfect man (person). So these two (pens

And watch) are minimum qualification of a perfect and educated

person.

Thus, there is a good scope for fountain pens and

ballpoint pens. Industry at least every town, nation, state,

district, talukas of country.

9


10/29

Production Process

This is manufactured by using the raw material

cellulose acetate butyrate, the other raw material likes cellulose

acetate and polystyrene etc are not as good as cellulose acetate

butyrate for these item. The cellulose acetate butyrate is an

important raw material. This material is fed into the barrel

through the hopper of the injection-molding machine. The barrel

is heated by electricity and the material is pushed into the old

mould by the piston by putting the handle. As soon as, it enters

in the cold mould. It is gets the shape of the mould cavity. Open

the mould and take out the molded product.

The cap, barrel, nut, neck, etc of the fountain pen body

are manufactured in this manner for small parts like nut, or

hand opertated injection molding machines are used. Similarly

barrel, cap, nut, neck, etc of the ball pen are also made in the

injection molding machines.

10


11/29


12/29

Financial Details Of A Project

* Land:

This unit is established in GIDC area, Jamnagar-361 008

* Land & Building:

Covered shed for factory 70 sq. maters rented Rs.12000 p.a.

12


13/29

* Machineries & Equipments

Sr.

No.

Name Of Machineris Qty. Price In

Rs.(Per

Machine)

Total Rs.

1.

2.

3.

4.

5.

6.

7.

8.

9.

Hand Operated or cap,

injection moulding machine

Hand operated or cap,

injection moulding machine

Polishing machine

Nil Fitting

Cap Holding Machine

Mould

Packing, forewarning, taxes

freight, etc + electrification

and installation charges

Loss of machineries and

equipment

Office equipment andworking table

7

2

2

1

1

10 sets

-

-

-

4285

5000

4000

1000

1000

1500

-

-

-

30000

10000

8000

1000

1000

15000

6500

5000

5000

Total 81500

13


14/29

Name And Address Of Suppliers

A) Machinery Suppliers

1. M/s Premier Plastics

58, Narayan Mudali St.

Madras-1

2. Cash & Carry Machine Tools.

67, Armanian St.

Madras-16

B) Mould Suppliers

1. Gokul Plastic Pvt. Ltd.

23/25, Developed Plot,

Industrial Estate,

Madras-32

2. Supreme Machine Tools

Industrial Estate,

Ambatlur,

Madras-56

14


15/29

C) Material Suppliers

Cellulose acetate an imported item

D) Nibs And Refills

1. Ambition Nib Manufacturing Co. Ltd.

C-101, Phase II, Mayapuri,

New Delhi-110 064

2. M/s Balasubramaniam Works,

6/ 231- A Munsif Court,West St, Satlur,

Tamil Nadu.

15


16/29

Fixed Cost Statement

Sr.No. Details Amount(Rs)

1 Land & Building 12000

2 Machinery 81500

3 Contingency -

4 Preliminary -

5 Other Expenses 38400

Total 131900

16


17/29

Working Capital Statement

Monthly

Sr.No. Details No. Of Days Amounts(Rs)

Required Monthly

1 Stock of raw materials 30days 50500

2 Work in progress 2 days 22000

3 Stock of finished goods7 days 15500

4 Bills receivable 30 days 5000

5 Other expenses

-Rent 1000

-Insurance 250

-Repairs &

Maintenance 450

-Transport &

Advertising 1200

-Stationery,

Postage and

Telephone etc. 200

3100 30 Days 3100

Total 96100

Working Capital For 3 months

96100 X 3 = 288300 Rs.

17


18/29

Total Cost Of Production

Sr.No. Details Amount

1 Fixed Capital 131900

2 Working Capital (For 3 Months) 288300

Total working capital 420200

18


19/29

Financial Arrangement

Sr.No. Details Total GSFC Bank Owned Subsidy

Amt. Loan Loan Capital Rs1. Land & Building 14100 8400 - 3600 2100

2. Machineries 92910 51050 - 24450 11410

3. Contingently - - - - -

4. Preliminary Exp. - - - - -

5. Other expenses 43776 26880 - 11520 5376

6. Working Capital 313302 - 100000188300 25000

Total 46408692330100000227870 43886

19


20/29

Means Of Finance

Sr.No. Details Amounts

1. GSFC Lona 92330

2. Bank Loan 100000

3. Subsidy 43886

4. Own Capital 227870

Total 464086

20


21/29

Profitability Of A Project

Details Of Sales And Production

Sr.N. Details Quantity Rate Amount

1. Fountain Pen 1200 600 720000

2. Ball Point Pen 1600 220 352000

Total 1072000

Raw Materials

Sr.No.Details Quantity Rate Amount

1. Cellulose acetate 200 kg. 100p.kg. 20000

Butyrate

2. Clib for fountain 250 gruss 44 p.kg. 11000

3. Nil for fountain pen 155 gruss 100p.g. 15500

4. Ball pen refills 100 gruss 30 p.g. 3000

5. Packing materials - - 2000

And misc. expenses ---------

Total 50500

21


22/29

Sales And Wages

Sr. No.Details Total No. Monthly Total (Rs)

Salary Rs (Yearly)

1. Manger 1 2000 24000

2. Accountant 1 1500 18000

3. Store Keeper/typist 1 1000 12000

4. Skilled workers 8 800 96000

5. Unskilled workers 10 300 36000

186000

Add: Bonus (20%) 37200

Total 223200

Electricity Consumption (annually)

Electricity (power) 700 kwh 7500/-Rs

Rent and Insurance

1) Rent (1000*12) 12000

2) Insurance (250*12) 3000

Total 15000

Repairs and Maintenance (annually)

Repair and maintenance (450*120) 5400/-Rs

22


23/29

Depreciation

Sr.No. Details Amount Rs Rate Amount

1. Machinery & Equipments81500 25% 20375

2. Furniture 10000 10% 1000

Total 21375

Administration expenses

Sr.No. Details Amount (Rs)

1. Accountants Salary 180002. Printing And Stationery U

Total 20400

Sales Expenses

Sr.No. Details Amount(Rs)

1. Commission 2450

2. Salesmess salry 15000

3. Advertisement expenses 9600

4. Other expenses 1200

Total 282500

23


24/29

Interest

Sr.No. Details Amount (Rs) Rate (%)

Total (Rs)

1. GSFC Loan 73444 13.5 9915

2. Bank Loan 75000 15.00 11250

3. Interest on total

capital investment 405400 15.00 60810

Total 553844 81975

24


25/29

Summary

Sr.No. Details Amount (Rs)

1. Sales 1072000

2. Cost Of Production

- Raw material 606000

- Salary & Wages 223200- Electricity bills 75500

- Rent, taxes &insurance 15000

- Interest 81975

- Depreciation 21375

- Adm. Expenses 20400

- Repairs & Maintainance5400

- Selling Expenses 28250

1009150

62850

Less

3. Profit on sales 7.84 %

Income Taxes 8255

Net Profit 54595

Cash receipts = (Net Profit + Depreciation)

= 54595 + 21375

= 75970

25


26/29

Break Even Point (BEP) Statement

Rs.

1) Total Production 1072000

2) Variable Cost

- Raw material 606000

- Power & Fuel 7550

- Wages 223200

- Repairs & Maintenance 5400

- Selling Expenses 28250

Total Variable Cost 870400

3) Fixed Cost- Rent, taxes and interest 15000

- Adm. Expenses 20400

- Depreciation 21375

- Interest 81975

Total Fixed Cost 138750

Variable Cost 870400

Total Cost 1009150

62850

26


27/29

Sales Variable Cost

1) Contribution Ratio = --------------------------

Total sales

1072000 870400

= ------------------------

62850

= 3.21%

Fixed Cost

2) BEP = ----------------------- X 100

Contribution Ratio

138750

= ------------

3.20

= 43359 Rs

27


28/29

3) Rate of Return Profit

OR = ---------------- X 100

Profit On Capital Total Cost

54595

= ----------- X 100

1009150

= 5.41%

28


29/29

Project Prospects

The fountain pens and ball point pens manufacturing

industry is a very wide, Prospective and profitable market. As

can be understood from summery of project. Raw material and

labor are easily available to this unit from the local area at a

cheaper rate.

The partners will look after the office work and sales

also. They will visit regularly and will inspect all operations

handled in the unit. Thus, the partners will keep their eye

constantly. So there will not any fault or defect in any functionof the unit and will run smoothly.

The percentage on rates is around about 8 % and will

increases rapidly year by rear.

The unit pays regular legal expenses (like tax, etc) on

income tax, sales tax and excise duty.

The report provides all the information regarding the

unit.

Thus this report will enjoy various locational and other

benefits, so the future of the project is very good and bright.

29

pen ppr.doc

Documents