Project on Gas Burner & Stoves

Description
A gas burner is a device to generate a flame to heat up products using a gaseous fuel such as acetylene, natural gas or propane. Some burners have an air inlet to mix the fuel gas with air to make a complete combustion.

A FEASIBILITY REPORT ON

Gas Burner & Stoves

GROUP – „I? Third yearM.B.A. 2006-2007

K.S. SCHOOL OF BUSINESS MANAGEMENT GUJARAT UNIVERSITY AHMEDABAD.

Certificate
This is to certify that members of group‘I’of Third Year M.B.A. of K.S. School Of Business Management And Research have successfully completed their feasibility report on Gas Stove and Burner for the academic year 2006-2007 and have duly submitted to the institute. We found them honest, sincere and hard-working.

Date of Submission:

Project Guide Mr. Kaushik Trivedi

K.S.SchoolOf Business Management Gujarat University

Ahmedabad –380 009. Place:-

Group Name- I
Roll No. Name

3014 3021 3027 3045 3074 3075 3082 3083 3084

Ashutosh Chowdhary. Naresh Gunani. Punit Jhamtani. Unnat Panchal. Vishal Sankhela. Nitesh Shah. Harshit Shah. Rushabh Shah. Nishant Shah.

PROJECT GUIDE: Mr. KAUSHIK TRIVEDI

Table of content

Acknowledgement
We have made the project report on the feasibility study of establishment of Gas Stove & Burner in third year atK.S.School of Business Managementand we are highly satisfied with the task of project work provided to us. This has proved to be the first step towards the globalize world with the healthy management skills. We are deeply indebted toDr. Sarla Achuthan, director of K.S.School of Business Management who gave us an opportunity of implying our creativity in such a project assignment, which cannot be delivered, only with the theoretical knowledge of the subject. We are very much thankful to our project guideMr. Kaushik Trivediwho has constantly motivated us to put our best in the project. His advises regarding the preparations of the project report were really helpful to us. We would also like to thank allfaculty members of K.S.School of Business Management for giving their valuable advice which made it possible for us to work effectively as well as efficiently. It is not possible to express the name individuallyof each andevery one who helped us, but we would like to express our sincere gratitude to all of them. This project report is like ?Another feather in the cup? with third year graduation degree.

Group members.

PREFACE
We have made a feasibility report on the establishment of the Gas Stove & Burner units. The name of our unit isGarren flames. We have taken into consideration technical, marketing & financial feasibility of the organization in our project. For the technical feasibility we have taken a visit atSwastikEngeneering &Solar EnergyatGota, which manufactures gas stove & burner. From there we came to know the machineries required for the production, Process of gas stove & burners & other related information. In the marketing feasibility we have done the survey of customers & dealers. By analyzing the survey we found the requirement of the customers and the potential market of the Gas Stove & Burner. We also considered the marketing strategy for launching our product. The most important of all was the financial feasibility. we estimated all the expenses, which are likely to incurs for the establishment of gas stove & burner units. These all things are discussed in detail further in the project report.

Feasibility Study Steps
Meaning of Feasibility Report:A report which projects the practical viability of a venture with respect to different dimensions is called a feasibility report. By feasibility report, we mean that the venture must be practically possible with respect to the following areas of management.

? Technical Feasibility.
It includes technology selection, requirement material, indirect material, manpower etc. of raw

? Marketing Feasibility.
Just producing a product is not ultimate end but rather a beginning. It must be accepted and adored by customers.

? Financing Feasibility.
It includes all the data related to balance sheets, cash flow aspects, depreciation, description about loan, Insurance etc.

? Social Feasibility.
It should not only be viable from the above –mentioned angles butit must be such that it does not harm the society. Mankind is a community that we all stand in a relation to each other, that there is a public end and interest of society which each particular is obliged to promote, is the sum of morals.

Project estimation parameters and road map to set up an enterprise.
1) Identification of project.
? Assess market potential. ? Assess status of technology available, balance requirement & resource availability. ? Ensure technical feasibility and financial feasibility.

2) Formulation of project proposal.
? ? ? ? ? ? ? ? ? ? ? ? ? ? Market potential. Decision about location. Requirement of land & building. Requirement of plant & machineries. Requirement of other facilities & utilities. Assessment of working capital. Schedule of implementation. Legal entity of the organization. Assessment of project cost. Tie-up means of finance. Cost of production & profitability. Break even point. Cash Flow. Ratiosto establish financial viability.

3) Undertaking Government Formalities.

? Building plant approval from Gujarat Industrial Development Corporation (GIDC). ? Water Connection & Power Connection ? Clearance from pollution angle N.O.C or consent fromGujarat----Pollution Control Board ? A PAN Card is needed for Sales Tax.

4) Actual Implementation. ? After all Government formalities partners can start their project.

Project at Glance

Name of unit Constitution Factory address

:

GARREN FLAMES : : PARTNERSHIP FIRM Garren Flames 59/7, Naroda GIDC, Ahmedabad.

Project Cost of project

:

Gas Stove and Burner Manufacturing. : Rs.7439500

Financing mix

:

Partners? capital =Rs.3600000 Term loan from SBI =Rs.3839500

PARTNERSHIP DEED
This agreement of partnership made onApril 1, 2007at Ahmedabad by and between: 1. 2. Naresh Gunani. 4, Saraswati park, Hansol road, Ahmedabad-75. Punit Jhamtani. 754/6, Ambawadi, Sardarnagar, airport road, Ahmedabad-75. Unnat Panchal. 12, New Suryanarayana society, Ghatlodia, Ahmedabad-61. Vishal Sankhela. 105, Nandishwar apartment, Sola road, Ahmedabad-54. Nitesh Shah. 12, Mahavir bhavan, Paldi, Ahmedabad-7 Harshit Shah. GF/1, Chandragupta apartment, Vastrapur road, Ahmedabad -54.

2.

3.

4.

5.

6.

7.

Rushabh Shah. 74, Ishwarkrupa-Part 2, Naroda, Ahmedabad -30. Nishant Shah. E-14 Matangi flats, Kankaria, Ahmedabad -28. Ashutosh Chowdhary. B, Alaknanda society, Sahibaug, Ahmedabad -4.

8.

9.

We the above partners have decided to commence the business of manufacturing and/or trading ofGAS STOVE AND BURNERunder the name and of M/SGARRENFLAMESwith effect from April 1, 2007. And whereas the above parties here to being the respective partners of this partnership herein after referred to as firm. And whereas it is deemed desirable that the terms and conditions to which the partners have agreed mutually to carry on the business in partnership may be reduced into writing.

HENCE THIS DEED OF PARTNERSHIP WITHNESSETH AS UNDER: Name: The business of the firm shall be carried on under the name and style of M/SGARREN FLAMES, however partners shall be entitled to change the name of the firm as may be mutually agreed upon. Place of the Business: That the principal place of the business of the firm shall be situated at Plot No.59/7Naroda GIDC. But the partners shall be at liberty to shift it to any other place Or places and to open branch or branches at any other place or places as may be agreed upon. Nature of Business: The nature of business of the firm shall be manufacturing and/or trading of gas stove and burners. However the partners shall be entitled to carry on any other business or businesses under this partnership which they may decide mutually. Commencement: This partnership shall be deemed to have been commenced on and with effect fromApril 1, 2007. Duration: That the duration of this partnership is not fixed and it shall be partnership ?AT WILL?.

Accounting Year: The accounting year of the company shall commence from April 1 and will end on March 31 every year. The first accounting year of the firm will be from1-04-2007to31-03-2008. Accounts And Records: Proper and regular accounts and records of the affairs and transaction of the firm shall be maintained and kept at the principal place or any other relevant or appropriate place or places in accordance with the requirements of the business of the firm. Final Accounts: The balance sheet as on the last day of the accounting year and profit and loss account for the year shall be prepared at the end of each accounting year. The profit and loss as the case may be of the year shall be worked out and be allocated between the partners as per the profit –loss sharing ratio. Capital: The initial capital of the firm shall be Rs. 3600000 which shall be contributed by all the partners equally. Drawings: That the drawing shall be made by partners as many times in the year as per the wish to the partners taking into consideration the respective accounts.

Borrowing Power: That the film shall be entitled to secure deposits, borrow money and take loans from banks, financial institution and other corporate bodies or non corporate parties, the partners can also provide loans to the firm. Bank Account: That bank account in one or more banks will be operated in the names of the firm by any one or more of the partners and they shall beauthorizedto avail all types of facilities in the name of the firm that are generally allowed by the banks. Partners are also entitled to authorize any other person for operation of bank account through a power of attorney signed by all the partners. Remuneration: It is hereby agreed that in consideration of the working partners keeping themselves actively engaged in the conduct of the affairs of the firm as working partners they shall be entitled to draw remuneration w.e.f.April 1, 2007as under. A) The remuneration payable to the working partners shall be calculated as percentage of the book profit for each accounting year (first accounting year from1-4-2006to31-3-2007and subsequent accounting year of 12 months) in the following manner. NAME 1. Punit Jhamtani. 2. Naresh Gunani. 3. Rushabh Shah REMUNERATION 14000 Per month 14000 Per month 10000 Per month

For the purpose of above calculation book profit shall be calculated on basis as defined in explanation 3 to section 40(b) of the income tax act, 1961 or any other applicable provision as may be in

force for the income tax assessment of the partnership firm for the relevant accounting period. B) In case of loss remuneration will be paid to the working partners as paid in the case of profit. The partners shall be entitled to increase the above remuneration and may agree to pay remuneration to other working partner of partners as the case may be. The parties here also agree to revise the mode of calculation, the above said remuneration as may be agreed to by and between the partners from time to time. However nothing herein contained shall preclude the working partners from withdrawing any amount standing to the capital and/or current or loan account. Yearly share of profit for the relevant accounting year would be in such a manner as may be decided by the partners by mutual consent. Interest: We provide interest on capital at the rate of 6% p.a. and charge interest on drawing at the rate of 8% p.a. Share in Profit or Loss: The profits and loss will be distributed equally among all the partners. Modification: That the partners shall be entitled to modify the above terms relating to remuneration, interest etc. payable by executing supplementary deed and any such deed when executing shall have effect, unless otherwise provided, from the first day of the accounting period in which supplementary deed is executing and the same shall form part of this deed of partnership.

Arbitration: That any dispute of difference of opinions among the partners as may arise during the continuation of this partnership shall be referred to arbitration and in such cases the provision of INDIAN ARBITRATION ACT, 1940 shall be made applicable. Application of Act: That with respect to all other matters not specified herein connected with this partnership regard shall be had to the law of partnership, for the time being in force. Amendment and Alteration: That the partners shall by mutual, oral and written agreement is at liberty to amend, alter, vary or add to the aforementioned terms and conditions. After hearing the translation of this partnership deed and fully understanding the terms and conditions, we the parties here of put our hands to this deed on the date, month and year.

INTRODUCTION
L.P.G. is the most convenient and clean fuel for domestic use and is very popular in these days. The LPG Stove industry is about40years old inIndiaand is mainly concentrated in the small scale sector. LPG is a by product formed during petroleum distillation and is stored and marketed in gas cylinders of 14.2 KGcapacity and used generally for cooking stoves and to some extent for industrial purpose also. The Domestic LPG stove is primarily being used in the urban areas as well as in rural areas. The industry of Domestic LPG stove has grown considerably over the last 18 years and offers a wide range of products i.e.: 1) 2) 3) 4) 5) Gas Gas Gas Gas Gas stove stove stove stove stove with with with with with one burner, two burners, two burners, one grill also called as cooking grill, three burners, four burners etc.

History
Early stoves in the Western World

(Stove manufacture inSenegal.)
InEurope, the history of thekitchenstove begins in earnest in the18th century. Before that time, people cooked on open fires fuelled bywood, which first were on the floor or on lowmasonryconstructions. In theMiddle Ages, waist-high brick-and-mortar hearths and the firstchimneysappeared, so that cooks no longer had to kneel or sit to tend to foods on the fire. The fire was built on top of the construction; the space underneath was used to store and dry wood. Cooking was done mainly incauldronshung above the fire or placed ontrivets. The heat was regulated by placing the cauldron higher or lower above the fire. Open fire has three major disadvantages that prompted inventors even in the16th centuryto devise improvements: it is dangerous, it produces much smoke, and the heat efficiency is poor. Attempts were made to enclose the fire to make better use of the heat that it generated and thus reduce the wood consumption. A first step was thefire chamber: the fire was enclosed on three sides by brick-andmortar walls and covered by an iron plate. This technique also caused

achange in the kitchenware used for cooking, for it required flatbottomedpotsinstead of cauldrons. Only in1735did the first design that completely enclosed the fire appear: theCastrol stoveof theFrencharchitectFrançois Cuvilliéswas a masonry construction with several fireholes covered by perforated iron plates. It is also known as astew stove. Near the end of the18th century, the design was refined by hanging the pots in holes through the top iron plate, thus improving heat efficiency even more.

Early stoves inAsia

(Raised kamado)
ChineseandJapanesecivilisations had discovered the principle of the closed stove much earlier. Already from the ChineseQin Dynasty(221 BC-206/207 BC),claystoves that enclosed the fire completely are known, and a similar design known askamadoappeared in theKofun period(3rd-6th century) in Japan. These stoves were fired by wood orcharcoalthrough a hole in the front. In both designs, pots were placed over or hung into holes at the top of the knee-high construction. Raisedkamadoswere developed inJapanduring theEdo period(1603-1867).

HISTORY OF GAS STOVE AND BURNER IN INDIA
For the first time inIndiaIndoflamehave launched a unique gas stove with ?FLAME FAILURE DEVICE AND CHILD LOCK FEATURE?. Imagine a situation where the milk boiling on the gas stove, overflows and puts off the flame while you are busy doing something else. The gas leakage thus caused could lead to dangerous consequences. How would it be if you have a gas stove which automatically detects that the flame has been put off while the knob is still on and immediately shuts off the gas supply? Unbelievable isn‘t it!!! That‘s whatIndoflamemiracle gas stove brings you. Added to this, it also has a child lock safety feature. So even if your child twiddles with the knob turning off and on there is no fear of gas leakage. It‘s only if the knob is kept pressed for 3 seconds or more, that the gas can be ignited.

Gas and electric stoves

All previous stoves were fueled bywood(or otherbiofuel),charcoal, orcoal. The firstgasstoves were developed already in the1820s, but these remained isolated experiments. (James SharpinNorthampton,England, patented a gas stove in1826and opened a gas stove factory in1836.) At theWorld FairinLondonin1851, a gas stove was shown, but only in the1880sdid this technology start to become a commercial success. The main factor for this delay was

theslow growth of the gas pipe network. The first gas stoves were rather unwieldy, but soon the oven was integrated into the base and the size reduced to fit in better with the rest of the kitchen furniture. In the1910s, producers started to enamel their gas stoves for easier cleaning. A high-end gas stove called theAGA cookerwas invented in1922by SwedishNobelprize winnerGustaf Dalén. It is considered to be the most efficient design and is a much sought after kitchen "must have" in certain circles—despite the hefty price tag. The AGA, and similar products such as theRayburn Rangeare examples ofalways-onstoves which continue to burn fuel even when cooking is not being performed. Stoves (orrangesas they are also known) such as these are often used instead ofboilersorfurnacesto supply hot water and central heating to the rest of the house. Thomas Ahearninvented the electric cooking range in 1892 and installed one in theWindsor HotelinMontreal. The electric stove was showcased at theChicago World's Fairin1893, where an electrified model kitchen was shown. But like the gas stove, the electrical stove had a slow start, partly due to the unstable technology, and partly because first cities and town needed to be electrified. By the1930s, the technology had matured and the electrical stove started to slowly replace the gas stove, especially in domestic kitchens.

Introduction ofFirm
The firm“GARREN FLAMES”is established in the year2006-2007. The main product of the company isGas Stoves and Burner. The brand Name of the firm isGARREN.After satisfying all the legal formation, it is established.

Selection of a project Reasoning
Each and every individual, firm, industry and nation wants to be ahead of one another with the help of entrepreneurs, adequate and amiable labour force, proper transportation and other infrastructural facilities along with the line help the business units to bloom. Gas Stove and Burner is a product categorized as a durable good, because of vast range of availability of shapes. Its demand is increasing at15% p.a. With the same hope of bright future, we propose to venture ourselves in the field of manufacturing Gas Stove and Burner, where the scope of development is extended up to the horizons. As people have started thinking of safety in home and especially in kitchen, the demand of safe gas stoves is increasing day by day. Today's world is "Glamour World". Living standards of people inIndiaare also increasing. Every person in the society is ready to pay higher amounts for things that canbe considered as ?status symbol.‘

ProductRange:
GARREN FLAMESoffers an impressive range of Single, Double; Three, Four and Five Burners‘stove (Auto & Non-Auto) under ISI approved brands. These are made of finest quality Stainless Steel Bodies, Gas Cocks, Valves, Grillersand Jets strictly as per specifications laid down by Bureauof Indian Standards. You can choose from a wide range of 1,2,3,4 & 5 burners at numerous outlets all over India. Moreover, its attractive packing makes it an ideal gift to present to someone you love and care most.

Quality:
We believe that quality is not achieved by chance, but through constant and effective team work. Thus, all the products ofGARREN FLAMESare made of pure hygienic stainless steel and are made with latest techniques. We adhere to all safety norms and all components are passed through strict quality checks and only then the product is

offered to our customers. All components pass through strict qualitychecks before they are fitted into each burner to ensure high fuel efficiency.

Special features:
? ? ? ? ? ? ? ? ? ?

Fitted with high quality brass burners Very economical Excellent in finish Highly fuel efficient Easy to operate Bear classy labels Very safe to use Time saving with fast cooking Washable and easy to clean Bear no sharp edges at bottom

QUALITY CONTROL AND STANDARDS:
The LPG stove may be manufactured and checked according toIS 4246:1984, IS 11480:1985 and IS 5116:1985. The following testing facilities are required for getting ISI certification mark: 1) 2) 3) 4) 5) 6) Strength testing equipment. Thermal efficiency apparatus. Combustion apparatus. Gas soundness testing equipment. Floor wall and ceiling temperature measuring equipment. Gas consumption testing apparatus.

Business Environment
In the last few years ?Gas Stove and Burner industry? was stable. But now with increase in demand of qualitative and luxurious product and raise in the population, it is now in increasing mode and thus, Gas stove and burner industry is expanding.

Economic Environment
Nature of demand:Gas stove and burner industry is at growing stage and iscontributing to GDP is about 0.065% Gas stove and burner is giving technology in the new product as well as luxury in living standard.

1)

Competition :-

Nowadays, Gas stove and burner industry is at increasing stage. So that‘s why there are few competitors in the industry. There are big companies also in the industry, so it is very tough. But there is sufficient demand; it proves very much profitable field.

2)

Market resources:-

The raw material, capital, labour, electricity, sanitation facility, market, transportation and other resources are also available very easily.

Social Environment
It reflects as what we are giving to the society and there is also the expectation of the society towards the business. As Gas stove and burner is one of the part of the kitchen. And it is one kind of luxurious product. Our firmGARRENFLAMESgives the best of it.And asGARREN FLAMESis not using any raw material which is influenced by fire and that is not hazardous to the workers.

? POLLUTION CONTROL
Noanypollution controlcertificateis required in the unit. However the general feature for pollution control must be taken into consideration during the process of manufacturing.

? ENERGY CONSERVATION
General precaution must be taken into consideration to conserve energy such as shunt capacitors must beused with due care while welding and general lighting system.

Political Environment
Government is providing subsidy and tax benefit to the new firms and to those who starts in the rural area. Government also helps for establishment, expansion, modernization, and technology upgradation and giving loans at a lower interest rate.

Legal Environment
The firm is an SSI unit & partnership firm.Legal environment is not very complex but certain rules need to be followed. Affidavitrequiredfor industries is as follow. permanent registration as small scale

AFFIDAVIT FOR PERMANENT REGISTRATION AS SMALL SCALE INDUSTRIES.
I/We______________________________son/daughter/wife/widow of __________resident of does hereby solemnly and declared as under:1. That I/We have submitted an application dated _____________ for permanent registration of the unit as Small Scale/Ancillary/Tiny/Export oriented unit/Small Scale Service and Business enterprise. 2. That I/We am/are proprietors/partners/managing director of the unit whose name and address is given below: Name:-_______________________________ Address:-______________________________ 3. That all particulars furnished in the application form are factual and correct. 4. That the location of the unit does not violate any locational restriction for the time being in force and that I/We have obtained the necessary locational clearances from competent authority. 5. That I/We have obtained all the statutory clearances/no objection certificate/permission required to carry out the

manufacture/activity under the prevalent laws, regulation and rules in force. 6. That I/We have also obtained the necessary registration/license, whenever required under the relevant laws, rules as order for the time being in-force, for carrying out the said industrial activity. 7. That the unit doesn‘t require an industrial license because:? The unit employs less than 50/100 workers with/without use of power. ? The items proposed to be manufactured are reserved for exclusive production in the small scale industries sector. ? The unit doesn‘t manufacture any item, which is included in schedule – II of notification no. S.O. 477(E) dated 25.7.1991 and is not reserved for exclusive manufacture in the SSI sector as included in schedule –III of the above notification. 8. That the original value of the instrument in plant and machinery installed in the units is within the limits prescribed for tiny/ SSI/ SSSBE/ ancillary/ export oriented units as per existing provisions. 9. That the unit doesn‘t owned or controlled or a subsidiary or any other industrial undertaking in terms of the notification. 10. That I/We undertake to inform the registering authority within 30days of the crossing of the investment. Limits in plant and machinery and submit the registration certificate for cancellation of registration or declaration of relevant endorsement as Ancillary/ EOU/ Tiny enterprise /Small Scale Service and Business enterprise. 11. That I/We understand that if at a future date the said unit does not satisfy any of the conditions laid down in the Notification No._____ S.O 232(E) date 2.4.1991, or does not comply with any of the condition or restrictions for the time being in-force, or includes manufacture items that require an industrial license, then is such an eventuality, I/We shall be

liable and require to surrender our registration as a Small Scale Industry (SSI) unit. 12. That I/We undertake to inform the Directorate of industries /Registering Authority on all parameters and changes, if any, as required from time to time. 13. That I/We undertake to refund to the Central or State Government any or all financial incentives or benefits given under various schemes of assistance for Small Scale Industry (SSI) along with 18%, as may be demanded by the appropriate, authority of Central/ State Government, in case it is found that the information of particulars submitted to obtain registration were wrong and fraudulent. 14. That I/We fully understand that we have to comply with the above conditions failing which we are liable for action by the Registering Authority for cancellation of the Registration as well as under other relevant provisions of the laws and rules in-force. ___________ Signature.

DEPONENT VERIFICATION
Verified that the contents of the affidavit are true to the best if my knowledge and belief. Datelace: Deponent

Technological Environment
Nowadays as research and development happens, technology also changes. To survive in a competitive market every one needs to upgrade the technology from time to time. Otherwise it is difficult to sustain in the market. Only adoption of new technology will not help in surviving the business, we need to implement it at right time with the right intension and at right place. So that we can compete with our competitors. As far asGARREN FLAMESis concern, we have adopted a modern technology which will help us in achieving the goal and there is also sufficient staff for maintaining and break down of machinery.

SELECTION OF TECHNOLOGY
In order to keep the investment at a minimum necessary level, while ensuring global competitiveness machinery selection has carried out. There were two types of machinery available. (1) Capital intensive (Automatic machines)

For this machinery, only operators for machine are required. The whole process is automated right from casting of raw iron to getting finished product. (2) Labour intensive

Here, laboursare to be employed for running machinery as well as assembling the parts. We have adopted both the types of technologies as we need workers to maintain and operate machines and the packaging is completely done by the manpower.

Manufacturing Process of Gas Stove & Burner
Production Process
A. Placing an order:
The process of making ?Gas Stove and Burner? starts with placing an order of raw material. As per requirement order is placed before 5 days. After receiving raw material to the Factory, a sample is drawn for testing. After the test report, raw material is transferred to the raw material store room. If the material is found to be defective, it is returned to the supplier. For manufacturing process, the production manager sends a requisition order and then, store keeper will issue the raw material for the next stage.

Input:RAW MATERIAL
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Particular Raising Sand Mantonand Powder Coal Pigiron Steel Shot Drill (Pana) Sona 7 (polish Powder) S.S.Sheet Valve Pipe Name Plate On-Off Knob Packing Material Suppliers' Name Silicon Sand (Naroda GIDC) Silicon Sand (Naroda GIDC) Rock Fabricator(Naroda GIDC) Sonam Industries (Naroda GIDC) High Speed Co. (Naroda GIDC) High Speed Co. (Naroda GIDC) Jay Chemicals (Naroda GIDC) Patel Metal (Naroda GIDC) Rubi Agency (Manek Chowk) Rubi Agency (Manek Chowk) Muththa Brothers Rubi Agency (Manek Chowk) Mahaveer Packagings (Kalupur)

MACHINARY
S.No. 1 Particular For Burner Core Shutter Machine Sand Muller Machine Moulding Machine Mould Qupolo Furnace Machine Shot Blasting Machine Lathe Machine Drilling Machine(small) Drilling Machine(Big) 2 For Gas Stove Sharing Machine Die Machine Hydrolic press Machine Velding Machine Drilling Machine(Big) Buffing Machine Hemry Glinder Machine Pipe Cutter 1 1 1 1 1 1 1 1 M/s United Machine company. M/s.P.K.Enginering Works. M/s United Machine company. Shah Engg. Works. M/s Mahalaxmi Engg. works Shah Engg. Works. Shah Engg. Works. Atlas Engg. Works. 2 2 1 75 1 1 2 1 1 M/s. Essential Machine Tools (P) Ltd M/s Dutta Enginnering Works M/s JNW engineers M/s JNW engineers Patel furnace & forging Pvt.Ltd. Patel furnace & forging Pvt.Ltd. ABC machine tools M/s Mahalaxmi Engg. works M/s Mahalaxmi Engg. works Quantity Suppliers' Name

Flow mator

1

Prem Meters

B. Manufacturing Process:
C .R. Sheet is to be cut according to the desired length and width on theShearing machine. Then it has to be fed in theHydrolic press machinefor giving shape of the body of LPG stove. The big holes and small holes may be cut onDrilling machinein the body and must be removed. Then it may be sent for Nicrome plating from outside of MC limit. Then all bought out components like burner tops, pan supporting casting, Gas Pipe assembly, gas cook assembly Knobs, rubber rolls and name plates etc. are to be fitted on the body. Finally the stove must be tested as Per ISI mark requirement and packed for dispatching/selling. The whole manufacturing process is divided in to theTHREEparts and further in usage of machinery. 1. Body 2. Burner 3. Assembling

1) Body:Body is one of the important partsof the Gas Stove.To make a body, oneneeds stainless steelsheet and further process is done as follows. ? Cutting:After receiving the stainless steel, it is cut according to the different size of the product that is manufactured.

SHARING MACHINE(1.1)

? Dying & Press in:After cutting the stainless steel, the process of dying happens on it. It is one kind of process to give shape of the body.To have the perfection in the body, it presses the hard part of the steel inside.

Hydrolic press machine (1.2)

? Fabricating:Fabricating is done to equalize thebody of Gas Stovefrom each angle.Fabricatingisdone manuallywith use of normal tools like hammer, cutter etc.

? Bending:To have the right shape of the body, it is bended according to design of body.It is done onBending Machine. ? Welding:After completing all the above process, welding is done on the steel to get semi- finished product. ? Hole cutting and Drilling:According to need on the body, hole cutting is doneandDrilling is done to adjust other equipments in to the body.

Hole cutter machine (1.3)

2) Burner:To produce Burner, we need ?Rasing sand‘and Pigironasmainraw materials, which are consumed from supplier directly. ? Core die:After processing on raw material ?Rasing sand‘, we incurred core die and then go for the next stage.

Sand mular machine [2.1(a)] We got the first manufacturingBURNER. outputCORE

Sand mular machine[2.1(b)] DIEwhich will be further used for

CORE DIE

? Sand muller:Sand is filtered in this machine and it is made hardto be used inMouldsby mixing it with chemicals (Mentonant powder).

Sand muller machine(2.2)

? Moulding:Core die is inserted into moulding machine and mentonant powder is also added so that core die does not spread.

Moulds

? Casting:There are two types of casting, they are: ? Molasses casting in fabricate box. ? Green sand casting in match plate. Pigiron is used as raw material.

Pigiron

It is inserted into ?Qupola furnace machine‘.

Qupola furnace machine (2.3)

After heating it for 15 to 20 minutes, whatever liquid we get, is inserted into moulds

After 2 to 5 minutes, it is taken outside from it. ? Short blasting:If there are any sand remains, it is removed with the help of short blasting machine.

Short blasting machine(2.4)

? Shaping And machining:With the help of lathe machine, shapes are given to the burner according to their size.

Lathe machine(2.5)

? Drillingrilling is done with the drilling machine on the burner cap. It makes hole in the burner cap.

Drilling machine(2.6)

3) Assembling:? Pipe cuttingipe is cut as per different body sizes.

Pipe cutter(3.1)

? Valve:Valve is joined to the pipe. ? On-off knob:On-off knob is joined to the body. ? Hemry glinding:Then hemry glinding is done.

Hemry glinding(3.2)

? Polishing:To make the product standard, polishing is done on the product.

Polish machine(3.3)

? Colour:Colour is done according to the requirement by manually to make the product standard and qualitative and attractive. ? Quality check:After all the process and assembling, the finished good is to be checkedon Flow Mator Machineandthen and then only, it is passed to the finished goods storage room.

SELECTION OF LOCATION
GARREN FLAMES ENTERPRISE. 59/7, GIDC Naroda Estate, Ahmedabad. Location of any industry is very important aspect, while establishing an industrial unit. Any location so selected must have been evaluated properly from all points of view. The choice of location is influence by a variety if considerations proximately to raw materials and market availability of infrastructure, government policies and other factor. Several other factors have to be assessed before reaching a location decision: ease in copy with environmental pollution, labor situation, climatic condition and general living conditions. We required 1000 sq. Yards land for our plant. Cost of different Areas: Area Cost (Rs.) Bhuj (Katch) 700 / Sq. yards Kadi (Mehsana) 1300 / Sq. yards Naroda G.I.D.C. 1700 / Sq. yards Vatva G.I.D.C. 3200/ Sq. yards After having selected the location the site for the plant is to be finalized, keeping certain factor in consideration. The options available to us for plant insight areBhuj (Katch),Kadi (Mehsana),Naroda G.I.D.C.andVatva G.I.D.C.and we have selected Naroda GIDC due to the following reasons:-

REASONS FOR SELECTING THE LOCATION:? The main reason for selecting this location is the easy availability of raw materials in the same area which helps us in least transportation cost and low cost of production in turn helping us to sell our products at competitive prices in the market. ? Skilled persons and workers are easily available from near places. ? Power in GIDC area is easily available at the doorstep. ? Other facilities and utilities are provided by GIDC. Like water, roads, etc. ? NA permission is not required. ? The Government cannot take any steps against firm without prior notice.

Plant Lay out & Office lay out

ORGANISATION CHART

MANAGING PARTNER

PRODUCTION MANAGER

FINANCE MANAGER

MARKETING MANAGER

SUPERVISOR

TECHNICIAN

ACCOUNTANT

SALES EXECUTIVE

WORKERS

STORE KEEPER

JOB SPECIFICATION AND JOB DESCRIPTION
Job Title Education Mental Abilities : : Marketing Manager Master in Business Administration (MBA) with marketing + Additional qualification. The candidate should be alert, stable and should have great presence of mind. His mental abilities would be good with figures. He should be able to deal with large number of people under him. He should get the needed resources of the organization, put them into proper use and strive to reach the organizational goals. The candidate should have knowledge about the present scenario of the market. The candidate should have an experience for the same post for at least 3 years. He should have to supervise working of the manager under him. He should give some guidance, inspiration and implement required controls. He should be regularly updated regarding the market condition and should even change the strategies, if needed. He should investigate the differences and take required actions. Average starting salary is Rs. 14000/- p.m.

Special Abilities

:

Special Skills

:

Work Experience : Supervises Functions Responsibilities : : :

Salary

:

Job Title Education Mental Abilities Special Abilities Special Skills : : : :

Work Experience :

Reports To Supervises Functions Duties Responsibilities

: : : : :

Salary

:

Production Manager Master in Business Administration (MBA) + Additional qualification. The candidate should be alert, stable and should have great presence of mind. He should be able to deal with creditors and suppliers. He should be able to achieve targeted purchase and production. He should have some special skills regarding purchase and production methods. He should have some special knowledge regarding the market scenario. He should have good command over at least three languages namely English, Hindi, and Gujarati. He should have good communication of skills. He should have worked in purchase and production department of any. He should have an experience for the same post for at least two years. To the Managing Partners. He Should have to supervise the work of supervisors and technician. He should give some guidance, inspiration and help to supervisors and technician. He should keep a check over the purchase and production policies of the competitors. He should have regular check of stocks purchase and manpower conditions. He should be regularly updated regarding the market condition. Average starting salary is Rs.10000/- p.m.

Job Title Education Mental Abilities : :

Special Abilities Special Skills

: :

Work Experience :

Reports To Supervises Functions Duties Responsibilities Salary

: : : : : :

Finance Manager Master in Business Administration (MBA) with finance + Additional qualification. The candidate should be alert, stable and should have great presence of mind. He should be co-operative and quick in calculation of mathematics. He should be able to deal with people under him. He should have good knowledge of finance sources and better way of spending the sources. He should have knowledge regarding the market scenario. He should have good command over at least three languages namely English, Hindi and Gujarati. He should have worked in finance department of any organization. He should have an experience for the same post for at least two years. To the Managing partners. He Should have to supervise the accountant and regular accounts of the organization. He should give some guidance, inspiration and help to accountant when needed. He should keep a check over good and rising finance policies. He should have regular check of accounts. He should be regularly updated regarding the market condition. Average starting salary is Rs-14000/- p.m.

Job Title Education Mental Abilities Special Abilities Special Skills : : : :

Technician The candidate must be capable of assuming increased responsibility within a year. He should be able to deal with different types of workers like skilled, semi-skilled and unskilled. He should have some special skills. He should have good communication of skills. He should have an experience of minimum one year preferably in an industrial organization. To the Production and Purchase Manager. He should have to supervise the workers, security guards, helper/peons and the production process. He should give some guidance, help during the training process. He should train the employee/ workers in theirwork, organize various programs, solving the problems related to the workers. He should follow-up the training process, motivate the employees and maintaining industrial relations. Average starting salary is Rs.7000/- p.m.

Work Experience : Reports To Supervises Functions Duties Responsibilities Salary : : : : : :

Job Title Education :

Accountant Graduation in Commerce.

Mental Abilities

:

Special Skills

:

Work Experience :

Reports To Functions Duties Responsibilities Salary

: : : : :

The candidate should be alert, stable and should have great presence of mind. He should be co-operative and quick in calculation of mathematics. He should have good knowledge of finance sources. He should have good command over at least three languages namely English, Hindi andGujarat. He should have worked in finance department of any organization. He should have an experience for the same post for at least two years. To the Finance Manager He should keep all the accounts related to our unit. He should keep a check over good and rising finance policies. He should have perfect accounts. Average starting salary is Rs-5000/- p.m.

Job Title Education Mental Abilities Special Abilities Special Skills : : : :

Work Experience Reports To Supervises Functions Duties

:

Store Keeper He should be 12thpass through commerce stream. He should have good remembrance power and friendly nature. He should have ability to work with others. He should be good in filing the documents, checking the records, compiling the data, initiating the reports and keep the records accurate and up-to-date. Fresher are invited and experience would be entertained.

Responsibilities Salary Job Title Education Mental Abilities

: To the Production and Purchase Manager. : The stock of all the items. : He should check the materials, requirements along with the orders to be dispatched. : He should place the orders for the goods at the right time, checking quality and quantity of the goods and maintaining the stock register. : He should try to reduce wastage, keep the stocks in limits. : Average starting salary is Rs.2500/- p.m. Sales Executive : : Graduation. The Candidate should be alert, stable and should have great

Special Abilities Special Skills

: :

Work Experience : Reports To Supervises Duties Responsibilities Salary : : : : :

presence of mind. He should be able to achieve targeted sales He should have some special knowledge regarding the market scenario. He should have good command over at least three languages namely English, Hindi, and Gujarati. He should have good communication of skills. He should have worked for six months in the same field. Fresher are invited. To the Sales Manager. He should supervise the sales of the unit. He should fulfill the demand of the customers. He should give proper service and information to the customer/whole seller regarding the product. Average starting salary is Rs. 4000/- p.m. + commission.

Job Title Education Mental Abilities Report To Functions Duties Responsibilities Salary : : : : : :

Peon H.S.C The Candidate should be of sound mind. To the Supervisor. He should help to serve the customer in a better way. He should serve water/ tea/coffee/cold drinks to the guests. He should undertake the orders given by his superiors. To clean the office daily morning before the office work starts. : Average starting salary is Rs. 2000/- p.m.

Job Title Education Mental Abilities Report To Duties Salary : : : : :

Workers S.S.C. (skilled), Well versed with reading and writing skills (semi-skilled) The Candidate should be of sound mind. To the Supervisor. He should be good in working on the minor machines with sound knowledge. Average starting salary is Rs. 2500/- p.m.

Job Title Education Mental Abilities Special Abilities Report To Supervisors Duties Responsibilities Salary : : : : : : : :

Security Guard S.S.C. or some level of education. The Candidate should be polite and able to convince. He should be strong enough to stop any stranger to enter the premises. Guard the place from the thieves. To the Supervisor. The people entering in and going out from the industry area, Check everyone of them. He should restrict any unknown person to enter. He should responsible for the parts/vehicle stolen from the premises. Average starting salary is Rs.1500/- p.m. (Night shift) Average starting salary is Rs. 1500/- p.m. (Day shift)

MANAGERIAL SKILLS
MR .Rushabh Shah: M.B.A. He is specialized inProduction Management. He will be the head of the Production Department, dealing with the daily requirement of man power and row material. Mr. Naresh Gunani: M.B.A. (Finance),C.A. He is the head of the Finance Department, tackling with all financial aspects and accounting system. Investment and financial decisions will be taken with joint consent with Mr. Unnat Panchal. Mr. Punit Jhamtani: M.B.A. (Marketing) He is the head of Sales and Marketing Dept, dealing with communicating the product to customers through advertisements and respective budgets.

COST OF MANPOWER:
S.No. Particular Salary to Factory Employee Production Manager Technician Store Keeper Labour Salary to Office Employees Finance Manager Accountant Clerk Guard Peon Sweeper Salary to Sales Department Marketing Manager Sales Executive Store Keeper 14000 4000 2500 14000 5000 3000 1500 2000 1500 10000 7000 2500 2500 Monthly Salary

1

2

3

AMENITIES TO WORKERS:
The amenities provided to the workers at the workplace are as under. ? ? ? ? ? Drinking water Urinalsandlatrines First aidbox Lunch room Other facilities

Drinking water: We have made effective arrangements to provide wholesome drinking water for all workers. The cooler has been kept in the lunchroom so the workers can easily get cold water after taking lunch and whenever needed. And on that place, it has been clearly marked in Gujarati which is the language understood by majority of the workers. Urinals andlatrinefacilities: There are sufficient number of conveniently situated & accessible latrines and urinals. All of them are maintained in clean and sanitary conditions. Latrines:
? ? ?

are in a cubicle or room fitted with a door and located in a position that allows privacy. have fresh air. have an adequate supply of water and toilet paper.

First aid Workers have reasonable access to appropriate and adequate first aid equipment.
?

The equipments of first aid are maintained in a separate cupboard.

?

Respective medicines for different purposes are maintained separately and marked in Gujarati which is understood by most of all the workers and employees.

Lunchroom: We provide a separate area for taking lunch to the workers. Workers have reasonable access to a room or sheltered area to eat meals or take breaks.
? ? ?

There is no health or safety risk in the lunch room. The room has been maintained in hygienic conditions and kept clean. It has adequate space, seating arrangements and facilities for washing and storing utensils.

Liability of employer in case of accidents resulting from collapse of houses provided by him:If the house collapse is not solely or directly attributable to a fault on the part of the occupant or to a natural calamity, the employer shall be liable to pay compensation to the worker or his kin suffering injury or death.In order to claim this compensation, the worker or his next of kin or his authorized agent must write to Labour Commissioner within 6 months of the accident.The compensation would be paid under the Workmen's Compensation Act, 1923. Other facilities: We provide the workers umbrellas, blankets, raincoats or other like amenities for the protection of workers from rain or cold.

WORKERS? RIGHTS:
Hours and Limitation of Employment Weekly hours: ? 48hours a week for adult workers. ? Maximum hours of work are 9 hours a day and 54 hours a week. ? The worker is entitled to overtime wages at twice the rates of ordinary wages. ? He or she also has a right to one weekly holiday. Working on a holiday or the day of rest of the worker will entitle worker for double the wages as in overtime work. The notice of period of work It has to be displayed and correctly maintained. We can refuse to employ a worker for any day on which he is more than half hour late from the time displayed on notice of period of work.

Non-adult workers to carry tokens:
No child or adolescent will be allowed to work, unlesshe hasa certificate of fitness from the Certifying Surgeon. The token that non adult worker is required to carry bears a reference to this fitness certificate valid for twelve months. The fee for the fitness certificate, if any, is to be paid by us and cannot be recovered from the young worker or his or her guardian.

Annual leave with wages:
An adult worker is entitled to one day paid; leave for every twenty days of work. Half or more than half day's work is counted as full days' work. This earned leave excludes.

Holidays:
The worker is entitled to average daily wages (including D.A., cash value of food and other concessions, if any allowed to him by

theemployer). Maximum earned leave that can be encashed is 30 days. If the Employer terminates the services of the worker who has to his credit earned leave, then he shall pay the worker the average daily wages in respect of the leave not taken [Section 30-31].

MARKETING FEASIBILITY
Introduction
Marketing as a concept has changed through 20thcentury. The whole idea of marketing has changed now; it is believed that ?The best way to get and keep customers is to constantly figure out how to give them more at a less.? In the prevailing era of the modernization and the globalization, we have to keep the pace with the newer and the modernized technology. But only technology up-gradation doesn‘t lead to an over all development of the organization. Along with the technological advancements and the innovations, the firm must have a strong department with the help of which it can market its product and can easily and rapidly earn the name and the fame for the same. In this far-reaching equally competitive era of modernization each and every field requires strong potentially and good marketing skills and before entering into the market any firm must analyze that how far it is feasible for it to get survived into the market. In this competitive era of only good service and good production don‘t ensure sales. Today competition is not rife but growing more intense every year. It is no longer enough to satisfy customers, you must delight them. Hence, today we have to run faster to stay in the same place. This is the place where marketing helps. The aim of marketing is to meet and to satisfy target consumer‘s needs and wants. Before going to market feasibility one must know what ismarketing. According toLESLIE RODGER, ?Marketing is the primary management function which organizes and directs the aggregate of business activities involved in converting customer purchasing power into effective demand for a specific product or service and in moving the product or service to the final customer or user so as to achieve the firm-set or other objectives?.

Our marketing feasibility report deals with the product policy, that is what type of product or products should be manufactured. The determination of price and the terms of payment are also covered in the product.

Visions:? To pursue excellence in quality with a futuristic approach. ? To keep abreast of changing consumer perceptions. ? To provide comprehensive value for money to our deserving consumers. ? An aggregate commitment towards quality through technical and professional perfection. ? A steadfast dedication to quality and attainment of maximum satisfaction.

The word?Marketing?explains that
? ? ? ? ? ? ? ? ? M: - Moneymaking must be secondary. A: - All customers should be satisfied. R: - Reasonable price of the product. K: - Keep on eye on competitors. E: - Easy availability of the product. T: - Thoughtfully advertise the product. I: - Importance to the quality. N: - Need of tremendous changes all the time. G: - Generation of new ideas.

Objectives:When one firm enters into the market, it requires identifying specific objectives on the basis of company’s position in the market. Our short term objectives before entering into the market are, ? Create awareness regarding our products. ? Get our new firm to the notice of the dealers and consumer. ? Getting reasonably good starting in sales for our product. Our long term objectives are, ? Convert the awareness into the brand preference. ? Improving and matching quality level to get consumer satisfaction. ? Maximization of profit.

Evaluation and selection of the Market segments
Market segmentation
We first identify the distinct group of the buyers who differ in their needs and preferences. And then we make the products as per their requirement so that their need is satisfied and they become loyal to us. As there exists so many types of gas stoves, which are almost same but they differ in number of burners. We have to identify which type of product is required by our customers and it is to be produced as per their requirements. So we have to identify the segment and decide the target. It is beneficial to us in the following ways, ? ? ? ? ? We can create more fine-tuned product. Price of the product will be almost as per target segment. We can have easy distribution channels. We can have clear picture of our competitors. We can know which other firms are also going for same segment.

We prefer local marketing in initial years because it is important to satisfy the huge local market. Besides, it is difficult to cover the market of the wholeIndia. While commencing the manufacturing to cover at national level market, we have decided to givedistributionship at various states. ____________________________________________

Patterns of market segmentation
Among all the patterns of market segmentation, we fall under the category of homogenous segments because there is no any noticeable difference in the products of all the manufacturers of the ‘Gas stove and burners’. Our customer’s preferences don’t scatter through out the space, which indicates that customers don’t vary greatly in their preferences. So our brand would be near to the other competitors. We try to locate our brand near the corner to attract a customer group that has not been satisfied with other brands.

While segmenting the market, we took the following steps:? We grouped the customers into segments based on similar needs. ? We found out alternatives of large segment. ? Determination of profitability of the segment finding unique customer needs and characteristics.

Estimate future Demand
We estimated the future demand to identify potential market. After which we did sales forecasting. The measures of Market demand: 1. 2. 3. 4. Industry sales Company sales Product line sales Product item sales

From these we have measured the market demand on the basis of current sales. We have estimated in this way so that we can get exact idea of raw material required, production planning, and borrowings. We have forecasted regional demandandmeasured the demand in target market. We have forecasted demand with the help of various sources such as consumer survey and dealer‘s survey. Our ? ? ? three main bases of forecast are as below: What people say. What people do. What people have done.

MARKET RESEARCH
Change is inevitable phenomenons that affect the business environment. If we don‘t cope up with the prevailing changes in the market, our business is likely to perish. To keep pace with rhythm of change one has to make deep market research. Now, we may have a question that ?what is market research?? ?Market research is the systematic design, collection, analysis and reporting of data and finding relevant to a specific market situation facing the company.? According to management association (ANA), ?The systematic gathering, recording and analyzing of data about problem relating to the marketing of the goods & services.?

Activities engaged in Market Research:
? Market potential and market share studies. ? Assessing the customer satisfaction and their purchasing behaviour. ? Studying of pricing, product, distribution and promotional activities.

Objectives of Market Research:
?Every action has a cause? and it is true with our research. In the era of globalization, every company must have a ?Mantra? of success which is to learn from past, improve the present and to foresight the future. Our entire research is based on the following objectives: ? To discover the present trends in the gas stove & burners with central focus on consumer behavior. ? To find out the various marketing strategies followed by the prevailing market of Gas stove & burners. ? To visualize the future trends in the market of Gas stove & burners inIndia.

Effective marketing research system involves the five steps shown in following figure. Define the problem & research objectives
Develop the research plan Collect the information

Report the findings

Analyze the information

Market Research Process
(A) Define the problem and Research objectives:
Market research is undertaken to archive particular objectives. The objectives should be decided first of all as to what the research should be for by acquiring the necessary information. Some research can be descriptive or causal. Our main objective in our research is ?finding the score and feasibility of has stove & burners in the industry.

(B) Develop the Research Plan :
The next step of a marketing research is to develop a step by step plan regarding decision factors like source of data, data collection method, sampling plant and contact methods.

?

Source of Data : The data sources can be primary or secondary; we have used both. - Primary Data - Secondary Data

Primary Data
Secondary information does not prove to be satisfactory in market demand & analysis. Therefore, we have acquired primary data though the survey so conducted. Types of Data : Primary Data Research instrument: Structured Questionnaires Sample size : 100 City Covered : Ahmedabad

Secondary Data
It reflects the over all picture of the demand in the magazine industry. Our sources of secondary data are: ? Gujarat Chamber of Commerce & Industry Ahmedabad. ? Gujarat Industry Development Corporation [GIDC] ? SSI (Small Scale Industry) ? BSI (Bureuro Of Standards Institute ) ? Solar Engineering Pvt. Ltd. ? Shakti Industry Ltd. [GCCI],

? Data Collection Method :1. 2. 3. 4. 5. Observational Research Focus Groups Research Survey Research Behavioral Data Experimental Research.

We used the ?survey approach‘ through questionnaire and ?behavioral data‘ by analyzing consumer behavioral and through asking retailers. ResearchInstruments:1. 2. 3. 4. Questionnaires Psychological Tools Mechanical devices Quantities Measures.

The major research instrument that we used was Questionnaire ofconsumer: SamplingPlan: The marketing researcher must design sampling plan, which consist of three components such as : 1. Sample Unit : People of Ahmedabad 2. Sample Size : 100 consumers 3. Sampling Procedure : Random sampling (Zone – wise division: north, east, west & central, south ) ContactMethod: There is a various ways; ?mail‘, ?telephone‘, to contact the people. There were direct (personal) contacts with the people for filling Questionnaires Collect theinformation:The data collection phase of marketing research is generally the most expensive and the most prone to error.

Analysis of the Information :The data collected in the previous stages have to be arranged properly and orderly. They have to be carefully processed and edited so as to make a comparative study. For analysis we have distributed the various questions in tabulated form and we have presented it in different charts.

4 P?S OF M ARKETING
The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. We have to classify the set of marketing tools into four broad groups that we called 4 P‘S of marketing.

Marketing mix Product Price Place Promotion

P PR RO OD DU UC CT T
?A product is anything that can be offered in the market to satisfy a want or a need of a consumer‘s problem.?Product is always a combination of tangible and intangible benefits. Our product is classified as consumerdurablegood.The USP (Unique Selling Proposition) of our product is a good combination of quality and price. PRODUCT LEVELS In planninghismarket offering, the marketer needs to think through five levels of product. Each level adds more customer‘s value and the five constitute a ?Customer Value hierarchy.?

There are five levels of the product. Each level adds more customer value.

Core Benefit Basic Product Expected Product Augmented Product Potential Product

CORE BENIFIT The most fundamental level is the core benefit. It is the fundamental service or benefit that the customer is really buying. The core benefit of Gas Stove and Burner is to give service and comfort to the customer.

BASIC PRODUCT
In this level the marketer has to convert the core benefit into Basic or Generic product. Here the marketer has to put emphasis on satisfying the basic need of the customer. The basic product constitutes the Gas Stove and Burner itself.

EXPECTED PRODUCT
At the third level, the marketer introduced an expected product, a set of attributes and condition buyers normally expect when they purchase the product. It is their minimum expectation. The buyer normally expect Gas Stove and Burner that is qualitative product and safe.

AUGMNTED PRODUCT
At the forth level marketer prepares an AUGMENTED product that exceeds customers‘ expectation. The augmented product is built up in order to make it competitive and attractive. It offers the additional benefit. The augmented product of the Gas Stove and Burner is light weight, washable, good shape and flame failure device. It should not harm the human being.

POTENTIAL PRODUCT
At the fifth level stands the potential product, emphasizing all the possible augmentation and transformation the product might under go in future. Here is where companies search for new ways to satisfy customers and distinguish their product. Here the innovation plays an important role. The Potential product for the Gas Stove and Burner is to give fuel saving facility.

PRODUCT HIERARCHY:
The product hierarchy stretches from basic needs to particular items that satisfy needs. There are five levels of product hierarchy.

1. Need family:
The core need underlines theexistence of a product family. Forus, it is easy burning.

2. Product family:
All the product classes that can satisfy a core need with reasonableeffectiveness. Forus, it is cooking ranges.

3. Product class:
A group of products within the product family recognized as having a certain functional coherence.For us, it is gas stoves.

4. Product type:
A group of items within a product line that share one of the several possible forms of the product. For us, different burners‘ stoves.

5. Item:
A distinct unit within a brand is known as item.

P PR RIIC CIIN NG G
Pricing is one of the most important elements of marketing but in today‘s world, it has come to occupy the center stage in marketing wars. Its importance has increased substantially all the years because of wide variety of products with the low price and good quality. In order to arrive at the most acceptable price level, the manufacturer needs to have the information on the 3 C‘S:- CUSTOMER - COMPETITION - COST STRUCTURE OF THE FIRM Our firm handles pricing in a variety of ways.We handle pricing with the influence of information revealed by the Sales Manager, Production Manager, Finance Manager and Chartered Accountant. After analyzing the price of the competitors, we have adopted a ?Going Rate Pricing Method? means we have priced our product somewhere near the prices of the competitors.

PRICING POLICY:?Clearer The Objectives, Easier To Set Price?. Our main objectives are as follows:1. SURVIVAL: It is our major objective because we would face intense competition. This is our short term objective; in long run we must learn how to add values to our product.

2. MAXIMISATION OF MARKET SHARE: Our long term objective is to become a role player in this market. We will charge lesser price than our competitors‘ prices.

ANALYZING COMPETITORS PRICES:As we are new in this market, it is not feasible to set higher price than our competitors‘ prices. Therefore, we need to set the prices lower than our competitors‘ prices as sometimes customer shifts to competitors‘ product due to price factor. Before entering into any market, one should identify its target customers. Our selection of target customer group is based on monthly household income and their living area. To cover target consumers of all income groups we have different products to satisfy each one‘s demand.

P PL LA AC CE E
Place is concern with linking the sellers and buyers. It includes decision about channels of distribution means of transportation, warehousing, inventory control etc. The choice of distribution is determined by the need to provide goods at right time and at the right place to the customers. Selection of channel of distribution is determined by the nature of produce and its market, customer of trade, availability of idle man and tendency of the products. Our distribution channel, physical flow and payment flow are as follow:

Physical Flow

A channel of distribution comprises a set of institution which perform all of the activities utilized to move a product and its title for production consumption. There are many types of intermediaries such as whole sellers, agents, retailers, the internet, overseas distributors, direct marketing (from manufacturer to user with out an intermediary) and many others. The main modes of distribution we will be looking at are in more detail.

1. Channel intermediaries – Dealers. ? They break down ?Bulk‘ into smaller packages for resale by a retailer. ? They buy from producers and resell to retailers. They take ownership or ?title‘ to goods whereas agents do not. ? They provide storage facilities. ? Dealers‘ offers reduce the physical contact cost between the producer and consumer. Example: Customers service cost or sales force costs. ? A dealer will often take on the some of the marketing responsibilities. Many produce their own brochures and use their own telesales operations. 2. Channel intermediaries – Agents. ? Agents are mainly used in international markets. ? An agent will typically secure a order for a producer ad will take a commission. They do not tend to take title to the goods. This means the capital is not tied up in goods. However, a stockiest agent will hold consignment stock ( i.e. will be store the stock, but the title will remain with the producer. This approach is used where goods need to get into a market soon after the order is placed). ? Agents can be very expensive to be trained. They are difficult to keep control of due to the physical distances involved. They are difficult to motivate. 3. Channel intermediaries – Retailers. ? Retailers have a much stronger personal relationship with the consumer. ? The retailer holds several other brands and products. A consumer will expect to be exposed to many products. ? Retailer should often offer credit to the customers. ? Products are promoted and merchandised by the retailer. ? The retailer will give the final selling price to the product. ? Retailers often have a strong ?brand‘ themselves.

P PR RO OM MO OT TIIO ON N
Promotion decisions are important as they help to move the product from the manufacturing end to the consumption point. For a brand to be successful, it must build enduring relationships with its different audiences. Integral to this relationship is the visual image of the brand the consumer carries in his or her mind.?We advertise because it offers a reason to buy but we do sale promotion because it offers incentives.?Our sales promotion includes,

Consumer promotion:
It mainly includes,

1. Prices off
We offer fewer prices to our regular customers so they are attracted to remain loyal to us.

2. Prizes
We also provide prizes to our customers who place more number of orders with us than others do.

3. Warranties
We also provide warranties to our customers i.e. if there is any problem whileusing our product, we replaces the defective pieces with the good pieces. ? Trade promotion ? Prices off

4. Advertising:
We do advertisingfor public promotion of our product. This is described in more detail in 5 M‘s of marketing in later part. Business and sales force promotion Trade shows and conventions- We take part in trade shows and conventions. Our advertising to sales promotion ratio is about 40: 60. Our sales promotion expenditure depends upon our expenditure budget. Purpose of sales promotion

Our sales promotion tools vary in theirspecific objectives. ? A free management advisory service aims at cementing a long-term relationship with a retailer. ? We do incentive type promotions to attract new trials and a reward to loyal customers and to increase the repurchase rates of occasional users. ? We also do promotions to attract brand switchers who are primarily looking for low prices and good value. We unlikely turn them into loyal customers.

Our strategy for sales promotion:
We first estimate what we need to spend in trade promotion. Then we decide what we need to spend in consumer promotion. As mentioned earlier, our advertising to sales promotion ratio is 40: 60.We follow this strategy because sales promotions yield faster and more measurable responses in sales than advertising.

Major decisions in sales promotion
? ? ? ? ? ? ? ? ? ? ? Establishing objectives For consumers Encouragement to the purchase in bulk Attracting switchers away from competitors‘ brand For retailers To pursue them to buy new products Offsetting competitive promotions Building brand loyalty For the sales force Encouragement to the new products Encouragement to new prospective The wordadvertisinghas 2 meanings: 1.Public promotion of some product or service 2.The business of drawing public attention to goods and services

Advertising means the activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media. The major advertising media are newspapers, magazines, television and radio, business publications, billboards, and circulars sent through the mail. With the advent of the wide availability of electronic mail and access to the World Wide Web in the 1990s, the internet has also become an important advertising venue. We advertise for several purposes depending upon the market condition, market demand, product life cycle etc. Some of our purposes are as follows? As we are new in the market, we have to advertise and promote our products a lot to make out target market aware about our firm. ? Plumbing fittings are the hidden products for the users. They would not concern about its brand and even about its purchase. Thus, we must have to promote them among the contractors, dealers, plumbers who are concerned with them. Advertising agencies have always been intermediaries between advertisers and the mass media. But we have not chosen this option because we have industrial buyers like contractors, wholesalers, manufacturers of other plumbing goods or bathroom fittings in which our products are used as intermediate goods. They will attract towards the product by discount rates, quality, commission, and durability instead of the advertisements. Thus, direct marketing and personal attention are more important for selling our products. In our firm, advertising is handled by the managing partner. The marketing manager‘s job is to propose an advertising budget, develop advertising strategies, and approve advertisements and campaigns, dealer displays and other forms of advertising.

Our marketing manager First start by identifying the target market and buyers motives. Second they make five major decisions in developing advertising programme which is known as ?5 M‘s‘.

1. MISSION: It is all about setting the advertisement goal in the initial stage. We prefer informative advertisement because our aim is to make target market aware about our firm. When we are popular in our target market, we will start persuasive advertising to create liking, preference, conviction and purchase of our product. Once the target market will be covered, we will start reminder advertising, which aims to stimulate repeat purchase of products. Our advertising objective depends upon the market situation i.e. the degree of competition. 2. MONEY: Deciding on the advertising budget

We consider advertising as a current expense, part of it is really an investment that builds up an intangible asset called ?Brand Equity?. We consider the following factors while deciding our advertising budget. 1) Stage in product life cycle In the initial stage, our advertising budget is high because we want to introduce our product to the customers. Afterwards, it will be low compared to the first year. 2) Market share and consumer base When the firm covers enough market share, it will requires less marketing budget because it will have a set of loyal buyers and recognition in the market.

3) Competition When there exists tough competition, we do more marketing and when there is less competition, we will advertise less. 4) Advertising frequency When advertising frequency is high, advertising budget will be high and when it is low, required money will be less. The frequency of our advertisement will be once in two months in the Gujarati newspapers. 3. MESSAGE: Choosing the advertising message

4. MEDIA: It includes the decision regarding media vehicles, deciding on media timings and deciding on geographical allocation. Major media types: ? Telemarketing: It means the business or practice of marketing goods or services by telephone i.e. selling over the telephone. Telemarketing is a form ofdirect marketingwhere asalespersonuses thetelephoneto solicit prospectivecustomersto sellproductsorservices. We find the prospective customers by various means, including past purchase histories, previous requests for information, credit limit, competition entry forms or application forms. Names are also purchased from another company's customerdatabase, or are obtained from atelephone directoryor some other public list or forum. We do The qualification process and find those prospective customers who are most likely to purchase our product. We also apply telemarketing to other forms of electronic marketing usinge-mailorfaxmessages. ? Pamphlet: Pamphlets include, An unbound printed work, usually with a paper cover. A short essay or treatise, usually on a current topic, published without a binding.

We give advertisement in a pamphlet which is an unboundbookletthat is, without a hard cover or binding. It consists a single sheet of paper that is printed on both sides and folded in half, in thirds, or in fourths which is called a leaflet. For us, pamphlets are very important in marketing as they are cheap and can be distributed easily. We will distribute pamphlets to the hardware shops, wholesalers, offices of contractors, etc. who are our target customers. ? Newspaper We also give advertisement in ?Gujarat Samachar‘, ?Sandesh‘, and ?Divya Bhaskar‘ because we cover market only in Gujarat at this stage and the circulation and impact of local language news papers is higher than those of English especially in out state. So there is no need to give advertisement in English newspaper. We almost give advertisement in every two months. By this media vehicle, we can reach too many customers as everyone will definitely read newspaper. ? Internet advertising It is delivering advertisements to internet users via web sites, e- mail, ad-supported soft wares and internet-enabled cell phones. It is also called an "Ad Network". Our Internet marketing includesinformation management,public relations,customer service, andsales. We expect that electronic commerce

andInternet marketing will help to make our product more popular as internet access has been becoming more widely available and used. We can also save money because of a reduced need for a sales force. Apart from this, internet marketing helps us to expand from a local market to both national marketplaces also. ? Yellow pages: We also give advertisement in Tata Yellow Pages because we can advertise our product to many of our target market through it. While deciding the media, we took following factors into consideration. ? Target audience: contractors, builders and dealers. ? Characteristics of our products - durable, reliable, good quality ? Cost of medium: As television is very costly medium and our products need not to be advertised on TV, we do not advertise on that medium. ? Media vehicles ? Media: Print media ?GujaratSamachar‘ ?Sandesh‘ ?Divya Bhaskar‘ Tata Yellow Pages 5. Measurement

Good planning and control of advertising depend upon measures of advertising effectiveness. We try to measure the communication effect of an advertisement – that is, its potential effect on awareness, knowledge, or preference. We also measure the advertisement's sales effect. Direct marketing Direct marketing is the main marketing or promotional tool for us. It is the use of buyer direct channels to reach and deliver products to customers without any middleman. Our strategies for direct marketing are as under. ? Direct mail ? Catalogs ? Telemarketing ? Web sites ? Salesmen For us, it is the fastest growing avenues for serving the target customers. We seek a measurable response typically a customer order. We use this type of promotional strategy to build a good relationship with our buyers. It helps in reducing the following things in terms of transportation. ? Higher cost of driving ? Traffic congestion ? Parking headaches ? Lack of time ? A shortage of retail sales help

COMPETITION: ?Poor firms ignore their competitors, average firms copy their competitors and winning firms lead their competitors.? The products of brass are not so much popular inIndiaso the manufactures of plumbing fittings of brass are less in number. We therefore do not have many competitors particularly for brass fittings. But these products are also made of galvanize, plastic or PVC, and steel. So we have to face them as competitors because these small products can be substituted very easily. Thus, we have a very laugh competition because of the substitute materials. The threats in terms of competitions to us are as under. Threat of new entrants: In this segment, entry and exit barriers are quite few so profit potential is high. Because of the high profitability many new forms are eager to enter the segments. Therefore market will be divided among all the firms and profitability of each individual firm will go down. Threat of substitute products: Drain strainer, elbows, kim nipple etc. are available in brass, plastic, galvanize, still etc. So a number of options are available to the customers. Moreover these are very small and hidden products so they can be substituted very easily. Therefore, we have to compete with the manufacturers of plumbing fittings made of all the above materials. These products have not been produced under any particular brand name. The local manufacturers used to produce

themin different materials. So they can be said our main competitors.

Steps involved in marketing ?Easy flow? undertakes marketing analysis for systematic designing, collecting, analyzing and reporting of data and findings relevant to a specific market situation. a) Define objective The main objective of our market survey was to know the market demand of plumbing products made out of ?brass?. A part from that we also want to know ? Which size of plumbing accessories are the most preferable among customers so we can have idea and can produce plumbing accessories. ? How much percentage of market is really interested in the plumbing accessories? ? To know how many customers are really interested in the superior product produced by us and how many of them really buy them. ? To know the factors considered by them in taking the decision regarding any product ? To know what is the future growth of our product. b) Define target population As per the market survey carried out by easy flow, contractors and dealers are the major decision makers for the purchase of plumbing accessories. Primary data sources Questionnaires.

c) Sample size: Consumer Dealers

100 people 10people

d) Develop questionnaire: (Given in Annexure)

Market Research Survey and Analysis From the survey conducted we found that in current market



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