Description
Cookware and bakeware are types of food preparation containers commonly found in a kitchen. Cookware comprises cooking vessels, such as saucepans and frying pans, intended for use on a stove or range cooktop. Bakeware comprises cooking vessels intended for use inside an oven.1
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A FEASIBILITY REPORT ON NON-STICK COOK WARE
GROUP : A THIRD YEAR M.B.A. 2010-11
K.S.SCHOOL OF BUSINESS MANAGEMENT GUJRAT UNIVERSITY AHEMADABAD-380 009
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CERTIFICATE
This is to be certify that members of Group A of third year M.B.A. of K.S.School of Business management have successfully completed their feasibility report on non-stick cookwarefor the academic year 2010-11 and have duly submitted to the institute.
Date of Submission: Name: Sign:
Project Guide:
K.S.School of Business Management Gujarat University Ahemedabad
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PROJECT TEAM
Sr. No.
1 2 3 4 5 6 7 8 9 10 11
Name
BharvikVarmora ChauhanDivya ChauhanKomal FufaliyaPriyank JadawalaRujuta KhatariyaGopi PanthShah VadhiyaBhavika DhamasaniaNiddhi Mendapara Rahul Patel Abhishek
Roll No.
3004 3008 3009 3013 3017 3021 3034 3074 3093 3106 3117
Index
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Serial No. 1
2 3
Particular Introduction: ? Acknowledgement ? Preface ? Project at a glance History of Nonstick Cookware Legal feasibility: ? Formation of private company Environment scanning: ? Pest analysis Technical feasibility: ? Input ? Process ? Plant layout Human resource feasibility: ? Organization chart ? Job Profile ? Employee welfare & Retention Marketing feasibility: ? 4P?S of Marketing ? Market Research ? Findings & conclusion Financial feasibility: ? List of Assumption ? Cost of Project ? Means of Finance ? Cost of Land ? Cost of Machineries ? Cost of Furniture ? Preliminary Expenses ? Factory Overheads
Page No.
4 5
6
7
8
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? Administration Overheads ? Selling And Distribution Overheads ? Calculation of Depreciation ? Salary Structure ? Repayment of Loan ? Consumption of Raw material ? Cost Sheet ? Profit And Loss Account ? Balance sheet ? Working capital statement ? Cash Flow Statement ? Ratio Analysis ? Statement showing sales for the different products ? Capital Budgeting ? Statement of Break-Even Sales 9 10 11 12 SWOT Analysis Conclusion Bibliography Webography
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INTRODUCTION
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Acknowledgement
It is true that world outside name many of a time different from what we are perceived. Similarly it is impossible that the theoretical knowledge is enough for doing a project, getting practical knowledge is an important thing, which is not possible without the support, guiding, motivation and inspiration provided by many persons. Hence our project bears the imprints of many people.
The project work assigned to us at „Third Year M.B.A? level of Feasibility Report is really a very motivated task. Here, we present our project on „Nonstick Cookware?.
We indebted to Prof. SarlaAchutan, the director of K.S. School of Business management, who gave us as an approving chance of implying our self in such a project.
We are also thankful to the contributions made by our faculty guide Mrs. Hiral Parikh, who has been a constant motivator and guide to us.
It is really not name each and everyone who helped us in our project work in one or the other way but we would sincerely like to thank every one of them for their kind help and guidance.
Preface
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MBA is a stepping stone to management career, in order to achieve practical, positive and concert result, the classroom learning needs to be efficiently fitted to the realities and the situation existing outside the classroom which is in the market this is particular what we learn in the management.
Every study is incomplete without having a well-planned and concrete exposure given to a student. Management studies are not exceptions. The study of management only as a theoretical knowledge is just like a wondering ship in ocean without a compass, so at this side it provides sound basis to adopt the theoretical knowledge and on the other hand it gives opportunity for exposes to real market situation. It gives us the basic practical experiences, which serve us a compass in the directionless ship; this enables the ship to reach its destination against all odds from all of its rivals.
This project is given to the student for having a firsthand knowledge of business activities and ads to their existing stock of information.
PROJECT AT A GLANCE
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Name Product Constitution Industry address Date of incorporation Total cost of project Means of finance: Share capital Loan from SBI Break-Even Sales
SUPREME Nonstick Pvt. Ltd. Nonstick cookware
Cookware
Private limited Plot no.49 Odhav industrial area, Odhav, Ahemedabad April 1,2011 3,85,14,800 2,21,94,800 1,63,20,000 1,83,58,568
History of Nonstickcookware
With busy schedules and long to-do lists, people are constantly looking for ways to save time. From drive-through to carry-out, restaurants offer more ways to get food fast. For people who prefer home cooking, cookbooks and Web sites are boasting meals that can be completed in less than 30 minutes and make-ahead options to reheat at dinnertime.
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But for some chefs, it's less about the time it takes to make food and more about the time it takes to clean up. That's where nonstick cookware comes in. Nonstick cookware lets people fry, sauté, and stew and bake with less mess and less fat. Non-stick cookware accounts for most of aluminum cookware sales. Cooks have enjoyed the convenience since it was introduced in the 1950s. Non-stick cookware was invented by Marc Gregorian in 1954. Te-Fal was founded in 1956 to manufacture the new cookware, under the Te-Fal brand. Marketed in chic magazines, Te-Fal sales reached one million pieces a month in the United States by 1961. Te-Fal remains the leading maker of non-stick cookware, but numerous other brands, including Wherever, All-Clad, Faber ware, Viking, and Circling, offer non-stick cookware as well.Non-stick cookware requires less butter or oil for frying. It cleans up much more easily than conventional pots and pans, requiring little if no scrubbing.
Legal feasibility
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FORMATION OF COMPANY
1.
•Memorandum of association
Name clause:
The name of our company is “SUPREMENonstick Cookware Pvt. Ltd.”
Registered office clause:
Registered office of company is situated at below mention address: 302,Polaris Tower, SardarPatel Stadium, Ahmedabad.
Capital clause:
The authorized, issued, subscribe and paid up capital of the company is Rs.2,21,94, 800 divided in to equity share of Rs.10 fully paid up.
Object clause:
Main objective of SUPREMENonstick Cookware Pvt.Ltd. is to manufacture of nonstick cookware and sell within the Gujarat.
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Liability clause:
The Liability of members of company will be limited up to nominal value of share subscribed by them.
Association Clause:
We, whose names are mentioned below, are willing to form a private limited company and have obtained qualification shares as required by the Article of Association.
BharvikVarmora ChauhanDivya ChauhanKomal FufaliyaPriyank JadawalaRujuta KhatariyaGopi Shah Panth VadhiyaBhavika DammasaniaNiddhi Mendapara Rahul Abhishek
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2.
• ARTICLE OF ASSOCIATION
Private company:
The company is private limited company and accordingly the following provisions shall have effect namely. ? The number of members for the time being of the company(not including person who are in the employment of the company and persons who having being formally in the employment of the company where members of the company while in the employment and have continue to be member after the employment ceased)is not to exceed 50,but where two or more person hold one or more in the company jointly they shall for purpose of this paragraph be treated as a single member ? Any invitation to the public to subscribe for any share or debenture of the company is hereby prohibited ? The right to transfer of the share o the company shall be restricted in the manner and to the extent here in after appearing.
Share capital:
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The authorized share capital of the company is Rs. 22194800 divided in to equity shares of Rs.10 each. The capital of the company shall be subjected to increase or decrease and the share being consolidated or subdivided in accordance with the regulation of the company abide the legislative provision for the time being.
Increase of capital:
The company may from time to time; by ordinary resolution increase the share capital and such is divided into shares of such amount as may be specified in the resolution.
Power to reduce the capital:
The company shall have power to reduce share capital in the manner provided in the section 100 to 105 of the company act 1956 or statutory modification thereof.
Only absolute ownership recognized :
The company shall not be bound to recognize or take notice o any interest or claim in or upon any share other than the ownership of the register holder for the time being and the company shall be entitled to treat such ownership as absolute notwithstanding to the contrary.
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Restriction on transfer of share:
As provided by the article, a share shall not be transferred to a person who is not a member so long as any member or other person selected by directors as to whom it is desirable in the interest of the company to admit to membership, can be found to purchase it as at the fair value borrowings.
Power to borrow:
Subject to provision of section 292 of the company?s act 1956, the board may from time to time as its discretions accept deposit from members either in advance of calls or otherwise and generally from any source or raise for the purpose of the company, borrow or secured the payment of such sums as it think fit.
Payment of borrowing:
The board may secure the repayment of money in such manner and upon such time and condition on all respect as it think fit and particular by the issue or bonus share, preference share whether perpetual or redeemable, debenture or debenture stock or by creating any mortgage, charge or other security on the other undertaking of the whole or any part of the property of the company both present and future including its uncalled capital for time being.
Gujarat pollution control boardcertification:
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The unit will be eco-friendly and there will be no emission of effluent by the company.Yet it has to obtain permission from Gujarat Pollution Control Board. It is available easily as unit is a non- polluting unit.
Others:
Being a manufacturing company, it will be governed by following act: 1. The factory act,1948 2. The industrial dispute act,1947 3. The employees? provident fund act,1952 4. The payment of gratuity act,1972 5. The payment of bonus act,1965 6. Monopolies and restrictive trade practices act(MRTP) The provision of above would be taken in to consideration as and when need arise.
We,the several people, whose names are subscribes, are desirous of being formed into a company into pursuance of these Articles of Association and we respectively agree to take no. of share in the capital of company. Name of subscribers No. of equity share Name and signature of taken by each witness & address subscriber occupation (each of Rs.10) 2017709 GAURANG N. SHAH & CO. 2017709 CHARTERED 2017709 ACCOUNTANTS 2017709 201,ADITRAJ 2017709
BharvikVarmora ChauhanDivya ChauhanKomal FufaliyaPriyank JadawalaRujuta
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KhatariyaGopi Panth Shah VadhiyaBhavika DhamasaniaNiddhi Mendapara Rahul Patel Abhishek
TOTAL
2017709 2017709 2017709 2017709 2017709 2017709 22194800
ARCADE, SATELLITE, AHMEDABAD-19
THE FOLLOWING DOCUMENTS ARE REQUIRED TO BE FILLED WITH THE REGISTAR OF COMPANYS
FORM -1
DECLARATION OF COMPLIANCE I hereby declare that all the provision for incorporation of SUPREME NONSTICK COOK WARE PVT.LTD..has been duly complied with.
Signature/(Advocate)
FORM-18
ADDRESS OF REGISTERED OFFICE The address of registered office is: SUPREME Non stick Cookware Pvt. Ltd.
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302, Polaris tower, Sardar Patel Stadium, Ahmedabad
POWER OF ATTORNEY
SUPREME Non stick Cookware Pvt. Ltd. Company would hereby authorized to make addition, subtraction of any document filed to register of company.
FORM- 1A
Form 1-A has been filed by promoter with the fees of Rs.500/The memorandum of association of “SUPREME Non stick Cookware Pvt. Ltd.” has been filed to register of company with the registration fees of Rs.46,500/-
ARTICLES OF ASSOCIATION AND OTHER DOCUMENT The memorandum of association of “SUPREME Non stick Cookware Pvt. Ltd.” has been filed to register of company with the registration fees of Rs.500/- And other document has been filed to register of company with the average fees o Rs.500/- per document.
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3.
• certificate of incorporation
CERTIFICATEOF INCORPORATION No. 011- EAD8392 of 2011-2012 I hereby certified that the SUPREME NONSTICK COOKWARE PVT. LTD. is this day incorporated under the Companies Act, 1956(No.1 of 1956) and that the company is limited. Given under my hand at AHMEDABAD This day of 1st APRIL, 2011
Seal of
Sd/-
THE REGISTER OF COMPANYS,
Register of Companies GUJARAT
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GUJARAT
Dadra & Nagar Haveli
Environment Scanning
Pest analysis
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1. Political-Legal environment:
Political & Legal environment is an important element particularly in a mixed economy like India & affects directly the working of business organizations.
To set up the business after 1991, economic reform year is become easy in India & the government through various legislations has provided various incentives for the development of business.
Stable political environment is very important for successful operation of a business. It covers those factors, which either restrain or facilitate the business through the govt. action. It may include political atmosphere, political parties, govt. administration, political stability etc.
The legal environment for the industry is also liberal and removal of quota restrictions from January 2005 has opened up newer horizons for the country.
There are some laws related to labors. As far as product is concerned following laws affect it which is mentioned below with its address of the offices.
Gujarat pollution control board ParyavaranBhavan,
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Sector- 10A, Gandhinagar Laws relating to labours: ? ? ? ? ? ? ? Industrial dispute act, 1947 Industrial trade union act, 1946 Industrial relation act, 1946 Industrial Employment act(standing orders),1946 Workmen compensation Act,1923 Payment of wages act,1936 Equal remuneration act
2. Economic environment
Economic environment is the most important environmental factor which the business organizations take into account. After the economic reforms of 1991, India is continuing to move forward economic growth.
3. Socio-Cultural Environment:
Socio-cultural environment is quite comprehensive because it may include the total social factors within which an organization operates.
Cultural and social environment includes expectations of the society from the business, attitude of society towards structure, responsibility
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&organizational positions, customs, traditions & conventions, class structure &labours mobility & level of education. Our enterprise will not be causing any damage to the society; as such it is situated in the industrial area.
4. Technological environment:
The technological environment refers to the sum total of knowledge providing ways of doing things. The technological environment of the country is fast changing either because of import of technology from foreign countries or because of technology generated out of research and development within the country. In India, the govt. is also encouraging the development of internal technology through various incentives to the business organizations concerned as well as through other institutions & laboratories of council of scientific & Industrial Research and other technical institutions.
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Feasibility
A report which projects the viabilities of a venture with respect to different dimensions is called feasibility report.” The feasibility study contain extensive data related to financial and operational impact and will include advantages and disadvantages of both the current situation and proposed plan. By feasibility we mean that the venture must be practically possible with respect to the following areas of management
? Technical feasibility:
In this era of globalization, company can?t survive without technology. Higher productivity can come with only reduction in cost which in return comes out of improved technology. Moreover, only adoption of any technology at one time can?t help the
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company to survive any longer unless it does not implement it at right time and place. So, to face market, company has to upgrade their technology from time to time.
? Marketing feasibility:
Just producing product is not the ultimate end but rather a beginning. It must be readily accepted and respected by the market.Marketing feasibility includes determining the proper market for the product and the different ways for the promotion of the product. It includes market research, market segmentation, customer relationship and all other factors related with the market. It also includes deciding on the mediums for promoting the product in the market.
? Financial feasibility:
Finance is the heart or the centre point, which should be given the most important because without it, the unit cannot survive. So before incurring the cost to the project, any entrepreneur has to find out the ways raising funds. And for that the cost are estimated and by that financial feasibility is checked. Here all the expenses which are going to incur in the establishment process and all the cost of purchasing machineries, raw materials etc, are taken into consideration.
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All the fixed costs and variable costs are determined and the sources of funds are also found out. For that different financial institutions and banks are taken into consideration.
? Human Resource feasibility:
The modern corporate world says, “Retain your employees; you will not have to retain your customers.” Human beings are the only living asset in an organization, so it should be handled very systematically. It involves the decisions relating to recruitment, selection, training and development etc in a fruitful manner.
?
Feasibility study steps:
Basically in a project work assigned to us, feasibility means to check whether it is possible and profitable to create a venture? And for those four types of feasibility study we have to make. Namely, (1) (2) (3) (4) Technical feasibility Marketing feasibility Financial feasibility HR feasibility
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Technicalfe asibility
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Input
Raw material
Particulars Aluminum circle Canbay powder Choona powder Screw Whistle Rubber gasket Handle Safety valve Packing material Price(Rs.) 160/k. g. 150/k. g. 25/k. g. 200/k. g. 65/unit 130/unit 35/unit 35/unit 10/unit Consumption(monthly) 3800k.g 30k.g. 50k.g. 25k.g. 1000units 1000units 4500units 1000units 4600units
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Kerosene Oil Binder Pigment Nikal Acid Sulphuric Acid Boric Acid Silicon Fluropolymer Perfluropolymer
20/ lit. 70/lit. 350/k.g 200/k.g 850/lit 1100/lit 900/lit 600/k.g 500/k.g 1000/lit.
50ltr. 10ltr. 10k.g 10k.g 12ltr. 15ltr. 13ltr. 15k.g 15k.g 18ltr.
Land & Building
Location Analysis:1.
Cost of production:
As our location is in industrial area, the production cost is low due to availability of workers at the reasonable rate.
2.
Transportation:
Our premise is located near the highway, so it is ease to transport. As well as we send the goods to the local distributor through transportation system
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3.
Competitor:
As no competitor exists for manufacturing nonstick cookware in regional marketit is good business opportunity for us.
4.
Infrastructural facility:
Electricity: Gujarat electricity board provides electricity in this area. As soon as we require additional connection, the same will be provided.
Water supply: The water is provided by the municipal corporation. But for the additional use we have installed our own bore.
Labor supply :
The skilled and unskilled labors are easily available in this area. The prevailing wage rate for unskilled worker is Rs.175 per day.
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MACHINERY: 1) Pressing / moulding machine:
? Cost: 9.5 lacks ? Durability: 8 to 9 years ? Function: Giving shape to Aluminum circle
? Supplier: Meghdut appliances
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2) Finishing machine:
? Cost: rs.50,000 ? Durability: 6 to 7 years ? Function: to remove an unwanted Aluminium from the article ? Supplier: Padmavati enterprise
3) Polishing Machine:
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? ? ? ?
Cost: Rs. 35,000 Durability: 7 to 8 years Function: for shining purpose Supplier: Padmawati enterprise
4) Spot welding machine:
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? ? ? ?
Cost: Rs.80,000 Durability:6 to 7 years Function: For handle fitting Supplier: Satyam international
5) Stamp machine:
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? ? ? ?
Cost:Rs.1,00,000 Durability:9 to 10 years Function: trademark the product Supplier: Radhekrishna enterprise
6) Spray machine:
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? ? ? ?
Cost: Rs.35,000 Durability: 8 to 9 years Function: To coat the article Supplier: Samyak appliances
7) Anodized plant:
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? ? ? ?
Cost:Rs.22,00,000 Durability: 7 to 8 years Function: To harden the product Supplier: Omkarapvt.ltd
Process Flow
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MOULDING PROCESS
FINISHING PROCESS
POLISHING PROCESS
COATING PROCESS
NONSTICK COATING
ANODISED PROCESS
PROCESS
Moulding/Pressing process:
Pressing machine is used to give a shape to different articles from the aluminium circle.Different sizes of aluminium circles are used for different article.Different kinds of die are used for different size of article
Finishing process:
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After the moulding process,articles are sent for finishing process. Finishing machine removes unwantedaluminium from the article.
Polishing process:
After finishing the article,polishing process is used for shining. For shining purpose canbay powder,kerosene and oil are used. After polishing the articles,articles are processed for coating.
Coating process
Coating process is divided in to two processes. 1.Anodised 2. Nonstick coating
Anodised process:
After Polishing,the articles are sent to anodized plant for hardening.Here in this process the polished articles are tied with an aluminium wire. Then this articles are hanged in Anodized plant. In the anodized plant there is a mixture of sulphuric acid and water. All articles are hanged in a line on the rod. After this the direct current of 200 ampere is passed which is then converted into alternate current.During this time Ammonia Gas is released from the tank. The range of current may vary from 200 ampere to 1400ampere as per the requirement.
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During this process the mixture of sulphuric acid and water is sent to cooler tank which is surrounded by fans which enables the mixture to become cool. This is done so that we can use mixture again and again and also it helps in making articles harder. This mixture is change after 6 months. Thus process is known as acidic process. After 3 hours, the articles are washed with pure water and then it is sent for ceiling process. In ceiling process, there is a tank in which there is a mixture of nikal acid and boric acid. Here in this tank unlike acidic process the articles are kept for 3 hours to make it harder. After 3 hours the articles are taken out from tank and washed with pure water. Finally it is sent for packing.
Non stick Coating:
There are mainly two types of nonstick coating: 1. Silicon and silicon Polyester formulation 2.Fluropolymerformulation Coating can be from one to three coating inthickness.
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In one coat system the binder, pigment, release agent and the carrier are combined in a single liquied that is applied to the article and cured at high temperature. Two coat systems have a primer applied followed by a second coat with a higher percentage of release agent. Three coat systems have a primer, midcoat with additional Fluropolymer to enhance the adhesion of primer to the mid coat and a midcoat to the top coat and a subsequent top coat between each of the multiple coatings, the article is run through a drying step before the final cure.
Application method: There are three main method used to apply nonstick coating. 1. Spraying 2. Curtain coating 3. Roller coating In our organization as per our convenience we are using spraying method to apply nonstick coating. After this coating the articles are left for drying then product is sent for packing.
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PLANT LAYOUT
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1.
Watchman?s cabin: We have 2 watchmen at the entrance and exit of the
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building.
2.
Finished goods Store room:
The store room is besides the parking plot so that worker?s doesn?t have to carry the materials for long.
3.
Official and refreshing area:
The office area i.e. the cabins of managing director, accountant and finance manager, marketing manager and sales executive and clerk, Waiting room, first aid room, and wash room are also there.
4.
Raw material storage room:
We have store room that has continence environment for storing material. As well as it can be moved easily from one place to other.
HUAMAN RESOURCE
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FEASIBILITY
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Human resource management is one of the most important elements of management process, which includes the process of recruiting, training, developing, motivating, and maintaining the human resource for organization. Organization requires the services of a large number of personnel. These personnel occupy the various positions created through the process of organizing. Each position of the organization makes certain specific contributions to achieve organizational objectives. So the person occupy the position should have sufficient ability to meet its requirements. “Effective Human Resource Management ensures that right people are available at right time and at right place.”
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Organisation chart
Organization chart is diagrammatical form which shows the major functions and their respective relationships, channels of formal authority and the relative authority of each personnel who is in charge of each respective function.
M.D
Production Marketing Finance
Manager
manager
Manager
Purchase manager
Sales executives
Accountant
supervisor
Clerk
Workers
Job Analysis:
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Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions and job specifications.
1. M.D
JOB- DESCRIPTION Job title Supervision Duties/Functions MD Various managers To monitor the work of Production managers, HR manager, Sales manager,Marketing manager, Finance manager. Help the MD in implementing the work in the organization. Screening the important information given by various managers. JOB- SPECIFICATION Qualification Experience Responsible for MBA in specified field 5 years or more as managing director Is responsible for implementing policies and converting plans intoaction.
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2. Marketing Manager:
JOB-DESCRIPTION Job title Reports to Supervision Duties/Function Marketing manager MD Sales Executive Have knowledge about marketing the product. Implement the market strategy. JOB-SPECIFICATION Qualification Experience Post graduation Management in Marketing
2 years or more as Marketing Manager in any company Should have good communication skill. Should have bargaining power.
Responsible for
Is responsible for making effective advertisement.
3. Production Manager :
JOB-DESCRIPTION
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Job title Reports to Supervision
Production Manager MD ProductionDepartment, Purchase manager
Duties/Functions
Good ability to manage the supplies and bargain with them. Should be able to purchase the raw material at best possible prices keeping in mind the quality of raw material purchased. Ability to manage the series of production.
JOB-SPECIFICATION Qualification Post graduate specialization management. with in MBA and production
Experience Responsible for
3 years or more as production manager in any company. any breakdown in production.
4. Finance manager:
JOB-DESCRIPTION Job title Reports to Finance Manager MD
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Supervision Duties/Functions
Accountant Raising and allocation of fund. Maintaining proper liquidity in day to day business. Decision regarding computer accounts.
JOB-SPECIFICATION Qualification Experience Post graduate in finance management 3 years or more He is number cruncher Responsible for Any financial dispute
5. Supervisor:
JOB- DESCRIPTION Job title Reports to Supervision Duties/Functions Supervisor Purchase manager Workers Guiding and training in handling the machineries to workers. Solve the technical problems related to machines in the factory. JOB SPECIFICATION Qualification Experience ITI in mechanic 2 years or more
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Responsible for
Any technical problem
6. Accountant:
JOB DESCRIPTION Job title Reports to Supervision Duties/Function JOB SPECIFICATION Qualification Experience Responsible for Accountant Finance manager Clerk Maintain the accounts
B.Com or M.Com with accoutancy 2 years or more Is responsible for making proper accounts
7. Sales Executive:
Job Description Job title Reports to Duties/Function Sales Executive Marketing Manager To carry out all operations for the implementation of advertising plans and promotional plans decided by marketing manager. Diploma in marketing 2 years To achieve the targets and responsible for any customer or dealer?s complaint
JOB SPECIFICATION Qualification Experience Responsible for
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about his services.
Wage policy:
Payment of salary to managers is monthly payment while to the daily workers it is on daily bases. At the time of festival the company gives bonus to the workers.
Safety measures:
The company provides medical treatment to the injured employees at the time of any accident will occur in the factory. The company also put fire extinguisher.
Holidays:
The company provides 4 holidays per month.
Incentive Programs:
Annual the company arranges “Award Function” for rewarding the best performance of the employees.
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Marketing feasibility
The marketer?s task is to devise marketing activity and assemble fully integrated marketing programs to create, communicate and deliver
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value for consumer. The marketing program consists of numerous decisions on value enhancing marketing activities to use. Marketing activities come in all forms. One traditional depiction of marketing activities.
4 P’S OF MARKETING:
Product
Price
Place
promotion
Product:
One of the most important requirement for marketing efficiency is proper product planning. In practical sense the scope of production and
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marketing of product are decided by the marketer based on its profitability and consumer reorganization. Product means “a goods, service, or idea that offers a bundle of tangible and intangible attributes to satisfy customer. Products which are marketed includes following: ? ? ? ? ? ? ? ? ? ? Physical goods Service Experience Events Persons Place Property Organization Information Idea
In short, product is anything that can be offered to market to satisfy want or need. “Product is a key element in the market offering.”
?Product variety:
Many products can be differentiated in variety or in physical structure or product by size, color, packing and brand name. Non stick cookware has variety of cook wares like handi, tawa, different pans, kadai, pressure cooker etc.
?Product quality:
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Another important element in product is quality. Buyers? expectations are to high quality of product and to meet the promised specification. Different types of non stickcookwares provide standard quality, durability to the customers.
?Product design:
Design has particular importance in marketing service when define the product. Product is one that is pleasant to look and easy to open. Non stick cook wares are available in round shape with glass lid or aluminum lid. Different types of pans are available with Bakelite handle.
?Product features:
Product can be offered with varying features that supplement the product as basic function. Features of Non stick cookware: ? ? ? ? Durability Affordability Safety Instant cooking
Product level:
In planning the market offer, the marketer needs to think through 5 levels of products. Each level adds more value to the customer?s satisfaction.
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Potential Level
Augmented Level
Expected Level
Basic Product
core benefit
1) Core Benefit:
It is fundamental service or benefit that customer is really buying. It basically includes the core ingredients of the project. Core benefit: To cook
2) Basic Product:
It is one of the alternatives to satisfy the core needs. It includes basic as well as functional attribute. Basic product: Non stick cookware
3) Expected Product:
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It is set of attributes and conditions buyers normally expect when they purchase or take the service.
Here, consumer expects following benefits: ? ? ? ? Durability Quality Safety Affordability
4) Augmented Product:
It consists of those services that meet the consumer?s desires beyond the expectations. ? Instant cooking ? Less consumption of fuel
5) Potential Level:
It is which encompasses all possible augmentations and transformations the service might undergo in future. ? Electric non stick cookware ? Automatic non stick cookware
Product mix:
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A product mix is the set of all products and items that a particular seller offers for sale. A company?s product mix has a certain width, length, depth, and consistency. 1. Product line: It is qualitative in nature and the product line of our company is Pan, Tawa, Handi, Casserole, Kadai and Pressure cooker. 2. Product width: Product width of a product mix refers to how many different product lines the company has or carries. It is quantitative in nature. Product width: 6 3. Product length: Product length of product mix refers to the total number of items in product mix. Product length: 9 4.Product depth: Product depth of product mix refers to how many variants are offered of each product in the product line.
The product depth of the non stick cookware is as under: No. 1. 2. 3. 4. 5. 6. Items Milk Pan Fry Pan Tawa1 Tawa 2 Casserole 1 Casserole 2 Size 102mm 205mm 26cm. 22cm. 2lit. 4lit.
Easy to cook, easy to wash
7. 8. 9. 10. 11. ? ? ? ? ? ?
Kadai Pressure cooker 1 Pressure cooker2 Pressure cooker3 Handi
1.8lit. 2lit. 1.5lit. 3.5lit. 3mm.
Pan-(1*1)+(1*1)=2 Tawa-(1*1)+(1*1)=2 Handi-(1*1)=1 Casserole- (1*1)+(1*1)=2 Kadai-(1*1)=1 Pressure cooker- (1*1)+(1*1)+(1*1)=3
5. Product consistency: Consistency of product refers to how close we related the various product lines are in end use, production requirements, distribution channel or some other way. Product consistency is high, higher, medium, and low. The product consistency of non stick-cookware is high because all non stick products are closely related.
Price:
Price is essential for both the customers and service provider. The price should be determined such that the service provider can get the maximum profit and customer can easily afford it. Varied pricing could occur according to geography, timeframe or value.
Easy to cook, easy to wash
The pricing strategy should be such that it can attract maximum no. of customers. We have defined the fee structure based on market survey conducted by us and the analysis of fee structure of the competitors. We plan to provide products on wholesale basis and through internet and teleshopping .Half of the amount of order would be collected on order basis and the rest along with the delivery and for the orders through telephone and internet the cash would be collected on delivery basis.
No. 1. 2. 3. s4. 5. 6. 7. 8. 9. 10. 11.
Items Milk Pan Fry Pan Tawa Tawa Casserole Casserole Kadai Pressure cooker Pressure cooker Pressure cooker Handi
Size 102mm 205mm 26cm. 22cm. 2lit. 4lit. 1.8lit. 2lit. 1.5lit. 3.5lit. 3mm.
Amount(Rs.) 510 700 615 400 665 300 750 1430 1250 1650 930
? Discount and allowance:
At the time of buying the product from the market, whatever lower price is paid by the buyer thanthe list price is called discount. Our company provides discount at the time of festivals and marriage season.
Credit terms:
Easy to cook, easy to wash
Credit terms include all criteria such as interest on late payment, nature of payment, bad debts, discount, delivery of goods etc. Our company provides credit terms of 3 months to our loyal wholesaler and retailers.
PLACE:
Place is not where your business is located but where your customers are. Place is where one can expect to find ones customers and consequently where the sale is realized. In other words “Place means the premise where we can actively make the different products and services available to the target customers. Thus, the seller needs to select appropriate place in such a way that the place fulfills the criteria of easy access to the perspective and the present customers.
Name Location
KING nonstick cookware ltd. Plot no.49 GVMM Odhav Industrial Area, Ahmedabad.
? Distribution channel:
Easy to cook, easy to wash
Distribution means making available right product at the right place, in right quantity, in right time, in right condition by the most effective mode. An efficient distribution can help in establishing loyalty among consumers. so consumers will not shift to substitute hence. distribution is one of the very important aspects of marketing. Our company?s distribution channel is as under:
? Transportation:
The mode of transportation depends on need of consumers, on time delivery performance, type of goods etc. Our company transports goods by roadways.
Easy to cook, easy to wash
PROMOTION
Promotion is the term taken from the Latin word “promo ere” which means moving from one end to another. In marketing promotion means all tools through which the marketer communicates its products to the customers.
? Objectives of promotion
? ? ? ? ? Providing knowledge about product Build company image Telling the customer about the new product Maintaining the product awareness Describing the available services provided by the company
? ? ? ? ? ?
PROMOTION TOOLS:
Advertising Sales promotion Public relation Personal selling Direct marketing
Among these promotion tools our company uses advertising and sales promotion.
Easy to cook, easy to wash
? Advertising:
5M’s of advertising
1. Mission: ? To create customer awareness. ? To create a favorable company image. ? To encourage immediate sales. 2. Media: ? ? ? ? Local News paper Local radio station Catalogue Hoardings
Easy to cook, easy to wash
8. Money:
Media Local news paper Hoardings Local radio station Catalogue 4. Message: ? Message generation ? Message evaluation ? Message execution The punch line of our company is “EASY TO COOK,EASY TO WASH” Total budget(Rs.) Rs.700000 Rs.55000 Rs.350000 Rs.95000
5. Measurement: The demand for our product has been increased by 5% to 10% over the 1st 5 years and advertising is one of the reasons for that.
?Sales promotion
Sales promotion is define as aggression of all such activities which assist selling, advertising and attain the organizational objectives. The purposes of sales promotion are as follows: ? To attract new customers. ? To reward loyal customers.
? To increase the re purchase rate of occasional users. ? Sales promotion turn brand switches who are looking for price, good value or premium into loyal users. ? Techniques of sales promotion are as follows: 1 Price off 2 Free samples 3 Coupons 4 Cash refund 5 Price packs 6 Premium packs 7 Frequentlyprogrammes 8 Contest 9 Patronage 10 Free trial product Our company uses only price off for sales promotion. Sales promotion includes consumer promotion as well as dealer?s promotion. (1) Consumer promotion:
Easy to cook, easy to wash
Our company will initially introduce consumer promotion tools like special advertising, allowances, discount etc. (2) Dealer?s promotion: To encourage the dealers to increase the sale, we have decided to give them commission on our sale.
Easy to cook, easy to wash
Easy to cook, easy to wash
MARKET RESEARCH
“Research
does not guarantee success.”
Research can?t be a substitute for first hand insight gained by engaging with the consumer. Neither can the research be a substitute for a common sense. “The of an idea is often mid-wifed by market research” Change is inevitable phenomenon that affects 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 the rhythm of change, one has to make deep market research.
? 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 Ahmadabad Management Association (AMA) the systematic gathering, recording and analyzing of data about problem relating to the market of the market of the goods and services.
Activities involved in Market Research:
Easy to cook, easy to wash
? Market potential and market share studies. ? Assessing the customer satisfaction and their purchasing behavior. ? Studying of pricing, product, distribution and promotion activities. ? Parts of Market Research: Market research is divided into two parts: (1) (2) Problem Opportunity ? Problem: Market research is done under this head if the organization is facing any problem like declining in sales, goods are returned by customers, advertisement failure and the like.
? Opportunity:
Here, Market research is done for entering into the new market. We are opting the opportunity as we are entering into the new market of non stick cookware.
? Process of Market Research:
Easy to cook, easy to wash
Every action has a cause and it?s true with our research. In the era of globalization must have a “Mantra” of success which is to learn from past, improve the present and to foresight the failure.
Effective Market Research System involves the five steps as under:
(1)
Define the problem and research objective
Market research is undertaken to achieve particular objectives. The objective should be decided first of all as to what the research should be for acquiring the necessary information. Some research can be descriptive or casual. ? Problem statement:
Generally the utensils of stainless steel and aluminium are burned because it requires more time for cooking and there is more consumption of fuel. They are also more difficult to wash. ? Objectives: ? To find out number of wholesalers currently buying the Nonstick cookware to sale the retailers. ? To know their problem with the existing utensils and try to achieve it. ? To know their expectations over the product which they are provided.
Easy to cook, easy to wash
(2)
Develop the research plan:
The second step of market research is to develop a step by step plan regarding decision factors like research approach, source of data, sampling plan, and research instrument and contact method.
?
Source of data:
The data sources can be primary or secondary. We have used both data sources. ? Primary data:
Primary data is the raw data that we can get from producers, consumers, traders etc. The primary sources are costly but reliable. We have used questionnaire method for gathering the information from the potential market. We have formulated a questionnaire consisting questions regarding the preference of our product. A questionnaire is a proper framework of questions which is design for primary data. We have gatherer information about wholesalers, retailers and customers and the market in Ahmedabad. ? Secondary data:
Secondary data is a historical data structure of variables previously collected and assembled for some research problem or opportunity situation other than the current situation. This kind of data structures can be found at libraries, universities, internet or inside the company.
Easy to cook, easy to wash
Secondary data is also available in the media like News papers and magazines. It can also be purchased from a firm specializing in proving secondary data. ? Research approach:
The following approach can be used for gathering the information: 1. 2. 3. 4. 5. Exploratory approach Focus group approach Descriptive approach Behavioral approach Experimental approach
We have used descriptive research approach in our project.
Research instrument: The following instrument can be used for market research.
1. 2. 3. 4.
Questionnaires Psychological tools Mechanical devices Qualitative measures
The major instrument that we have used in our project is questionnaire. Sampling plan:
Easy to cook, easy to wash
The marketing research must design sampling plan which consists of 3 components such as: ? Sampling Units: Dealers & consumers ? Sampling size: Dealers:50 respondents Consumers: 250 respondents ? Sampling Procedures: Convenient sampling method Contact method: There are various ways such as mail, phone, and direct contact with questionnaire. We have used third one in our project.
ANALYSIS
CONSUMERS’ SURVEY ANALYSIS:
CONSUMER?S QUESTIONNAIRE
1. Name:__________________________________________ 2. Area:___________________________________________ 3. Occupation: ?Business ?House wife ?Professional ?Employed
?Others________________
Easy to cook, easy to wash
4. Average monthly income: ?Below 15000 ?30000-4500 ?15000-30000 ?45000 & up
5. Do you use any non-stick cookware? ?Yes ?No
If yes then go to section A If no then go to section B
Section-A 6. Which of the brand of non-stick cookware are you using? ?Prestige ?Tuffware ?Jaipan ?Tefal ?Nirali ?Nirlep ?Crystal ?Nirlon
?Others________________
7. Which of the product of non-stick cookware are you using? ?Pan ?Casserole ?Tawa ?Milk pan ?Handi ?Kadai ?Stock pot ?Pressure cooker
Easy to cook, easy to wash
8. Which Factors do you consider while buying non-stick cookware? ?Price ?Brand ?Size ?Offer
9. From where do you purchase? ?Supermarket ?Nearby stores
10.How did you come to know about the particular brand of non-stick cookware? ?Neighbour ?Relatives ?Advertisement ?Others________________
11.Are you satisfied with your non-stick cookware? ?Yes ?No
If you are not satisfied then specify the reason for dissatisfaction Specify___________________________________________
12.What are the extra benefit you are looking for in a non-stick cookware? Specify___________________________________________
13.If we launch a new non-stick cookware considering your requirements would you like to purchase it?
?Yes
Easy to cook, easy to wash
?No
Section-B 14.Reason for not having non-stick cookware: ?Price ?Health factor ?Awareness ?Other________________
15.Are you planning for future ? Specify___________________________________________
Easy to cook, easy to wash
Graphical presentation:
OCCUPATION:
OCCUPATION business housewife professionals employed Others NO. OF RESPONDENTS 31 87 58 36 38 250
occupation
90 80 70 60 50 40 30 20 10 0 business housewife professionals employed others 31 58 36 38 87 occupation
INTERPRETATION:-
Easy to cook, easy to wash
From the above graph we can interpret that most of the users comprises of housewives followed by others like hotels, restaurants etc. the least users are business people.
INCOME:
income below 15000 15000-30000 30000-45000 45000 & above no.of respondents 25 43 55 82 205
250
200
150 income 100 no.of respondents
50
0 1 2 3 4 5
INTERPRETATION: From this chart we can interpret that most of the consumers we surveyed are belonged to the category of above Rs. 45,000 monthly income.
USERS OF THE NON-STICK COOKWARE:-
Easy to cook, easy to wash
Column1 yes no Column2 205 45 250
Users of non-stick cookware
no yes no yes
INTERPRETATION:The above graph conveys that most of the surveyed people are using non-stick cookware. The remaining people are not using because of the unawareness of the benefits of the same and also due to the health consideration.
BRAND PREFERENCE:
Column1 Prestige Column2 49
Easy to cook, easy to wash Tuffware Jaipan Tefel Nirali Nirlep Crystal Nirlon Others 20 30 22 17 29 10 18 10 205
Brand of non-stick cookware
10 18 10 49 prestige tuffware jaipan tefel 29 20 17 22 30 nirali nirlep crystal nirlon others
INTERPRETATION:From the above graph we can interpret that most of the people prefer prestige brand followed by Jaipan and Nirlep respectively.
Easy to cook, easy to wash
PRODUCT PREFERNCE:Column1 Pan Tawa Milk pan Handi Casserole Kadai Stock pot
Pressure cooker
Column2 26 32 39 15 12 18 8
55 205
Products of non-stick cookware are consumers using
pressure cooker 27% pan 13% tawa 15% stock pot 4% kadai 9% casserole handi 6% 7% pan tawa milk pan handi milk pan 19% casserole kadai stock pot
INTERPRETATION:-
In this graph we can infer that most of the people are using pressure cooker and the product which is least used by the people is stock-pot and casserole.
Easy to cook, easy to wash
Factor consider while purchase
Column1 Price Size Brand Offer Column2 55 34 76 40 205
Easy to cook, easy to wash
Factors consider while purchase
offer 19%
price 27%
price size
brand 37%
size 17%
bran d
INTERPRETATION:-
In this graph we can say that the major factors which are considered by the people while buying are brand and price.
PURCHASE PLACE:Column1 Supermarket Nearby stores Column2 140 65 205
Easy to cook, easy to wash
Purchase place
nearby stores 32% supermarket 68%
supermarket nearby stores
INTERPRETATION:-
With the help of this graph we can interpret that most of the people prefer to buy from the supermarkets only.
SOURCE OF INFORMATION:Column1 Neighbour Relatives Advertisement Others Column2 54 45 90 16 205
Easy to cook, easy to wash
From where you know about particular brand?
90 80 70 60 50 40 30 20 10 0
90 54 45 16 From where u know abt particular brand
INTERPRETATION:-
The major source of information for the people in this case is advertisement through various sources so we have also preferred advertisement as the major tool of marketing.
Easy to cook, easy to wash
SATISFACTION LEVEL:-
Column1 Yes No
Column2 138 67 205
Satisfy
no 33% yes no yes 67%
INTERPRETATION:-
Here in this graph we can infer that around 67% of the users are satisfied with the functions and result of the non-stick cook wares. The reason for non-satisfaction is its poor coating system, and to overcome this drawback our company will be doing double coating of each utensil.
Easy to cook, easy to wash
Preference to shift the brand:Column1 Yes No Column2 133 72 205
New launched brand purchase
no 35% yes 65%
yes no
INTERPRETATION:-
From this graph we can interpret that more than half of the users are ready to shift to the other brand due to some reasons like high prices, durability, inferior quality of coating and other extra features.
Reasons of non usage nonstick cookware
Easy to cook, easy to wash Column1 Price Awareness Health factor Others Column2 15 10 18 2 45
18 16 14 12 10 8 6 4 2 0 price awareness health factor others Series1
INTERPRETATION:
From the above chart, we can say that most of the people not using nonstick cookware because of the health factor followed by the price and awareness.
Preference for using in future
Column1
Column2
Yes No
Easy to cook, easy to wash 35 10 45
Preference for using in future
no 22% yes 78%
yes no
DEALERS’S QUESTIONNAIRE
NOTE 1. The information obtained will be kept confidential and will be used for research purpose only. 2. Please ? marks the boxes for responses leave the boxes blank for „NO? response. PERSONAL DETAILS: Name: _____________________________________________
Easy to cook, easy to wash
Area: _____________________________________________ Section-A 1. Which company?s dealership you have? [ [ [ [ [ ] Prestige ] Tuffware ] Jaipan ] Tefal [ [ [ [ ] Nirali ] Nirlep ] Crystal ] Nirlon
] Others________________
2. Which brands customers prefer the most? [ ] Prestige [ ] Nirali [ [ [ [ ] Tuffware ] Jaipan ] Tefal [ [ [ ] Nirlep ] Crystal ] Nirlon
] Others________________
3. Which brands do you sell more? [ [ [ [ [ ] Prestige ] Tuffware ] Jaipan ] Tefal [ [ [ [ ] Nirali ] Nirlep ] Crystal ] Nirlon
] Others________________
4. From where do you purchase?
Easy to cook, easy to wash
[ [
] From distributor ] From Company
5. How much credit period do you receive from the person you purchase? [ [ [ [ ] 0-2 months ] 2-4 months ] 4-6 months ] more than 6 months
6. On what basis do you sell your products? [ ] In bulk [ [ ] Piece to piece ] Both
7. On what terms you sell your products? [ ] Cash [ [ ] Credit ] Both
If cash, do you give any cash discount? ________ % If on credit, give the time duration for payment___________
8. What are your sales for last year? [ ] Pan
Easy to cook, easy to wash
[ [ [ [ [ [ [
] Casserole ] Tawa ] Kadai ] Milk pan ] Stock pot ] Handi ] Pressure cooker
9. Factor taken into considering by customer while purchasing. [Rank in order of preference] [ [ [ [ [ ] Price ] Brand ] Quality ] Availability ] Other (Specify) ______________
10. Does manufacturer help in marketing the product? [ ] Yes [ ] No
11. Stock maintained by you? Items Pan Casserole Tawa Units __________ __________ __________
Easy to cook, easy to wash
Kadai __________ Milk pan Stock pot Handi __________ __________ __________ __________
Pressure cooker
12. Do you provide any after sales services? [ ] Yes [ ] No
13. Which media you use while marketing the product? [ [ [ ] Internet ] Trade magazines ] Others_______________
14. What is the rate of margin which you expect from a new company? Specify ____________________________________________
15. Any suggestion Specify ____________________________________________
Easy to cook, easy to wash
Graphical representation:
COMPANY’S DEALERSHIP:
Name of the brands Prestige Tuffware Jaipan Tefel Nirali Nirlep crystal Nirlon others total No,of dealers 12 4 5 5 6 7 6 5 0 50
Easy to cook, easy to wash
Brand dealership
15 No of dealers 10 5 0 Series1
Name of barnds
INTERPRETATION:
From the above graph we can infer that most of the dealers are dealing with prestige brand and then followed by nirlep, nirlon and nirali respectively.
Brands sold more:
Easy to cook, easy to wash
Name of the brands prestige tuffware jaipan tefel Nirali Nirlep Crystal Nirlon Other Total No. of Dealers 21 10 8 9 12 10 14 12 0 96
Brand sold more
25 21 20 15 10 10 5 0 0 8 9 14 12 10 No. of Dealers 12
INTERPRETATION:
From this chart we can interpret that prestige is the most preferred brand as compared to others in terms of sales.
Easy to cook, easy to wash
PURCHASE PLACE:
particulars Distributor Company Other Total No of dealers 35 15 0 50
Purchase Place
40 35 30 25 20 15 10 5 0 Distributor Company Other 0 15 no.of dealers 35
INTERPRETATION: From the above chart we can infer that most of the dealers we surveyed
Easy to cook, easy to wash
are preferred to buy from the distributors as per their convenience.
CREDIT PERIOD:
time duration 2-4 4-6 >6 Total dealers 25 19 6 50
Credit period
30 25 20 dealers 15 10 5 0 2-4 4-6 time duration >6
INTERPRETATION:
Here in this graph we can interpret that most of the dealers get credit period of 2-4 months.
Easy to cook, easy to wash
BASIS OF PURCHASE:
Purchase Quantity Bulk Piece to Piece Both Total no of dealers 50 0 0 50
No. of dealers
Bulk
Piece to Piece
Both
INTERPRETATION: Here from this graph we can interpret that most of the dealers are purchase in bulk. TERM OF SALES:
Easy to cook, easy to wash
Term of Sales Cash Credit Both Total No of dealers 25 9 16 50
No of dealers
30 25 20 15 10 5 0 Cash Credit Both No of dealers
INTERPRETATION: From this chart we can infer that most of the dealers are practicing cash payment as the terms of payments.
SALE OF LAST YEAR
Items Quantity sold last year
Easy to cook, easy to wash
Pan Casserole Tawa Kadai Milk Pan Stock Pot Handi Pressure Cooker Total 30 12 37 26 24 5 29 43 206
Quantity sold last year
50 45 40 35 30 25 20 15 10 5 0 43 37 30 12 5 Quantity sold last year 26 24 29
INTERPRETATION: In this graph we can interpret that pressure cooker followed by tawa are having maximum sales during the last year where as the stock pot is having least sales.
Easy to cook, easy to wash
MANUFACTURER HELP IN MARKETING
Particular Yes No Total
Number 16 34 50
Number
Yes No
Easy to cook, easy to wash
INTERPRETATION: With the help of this data we can interpret that more than half of the manufacturers do not help in marketing of the product. Provide service after sales:
Particular Yes No Total Number 43 7 50
Number
Yes No
INTERPRETATION:
Easy to cook, easy to wash
In this graph we can interpret that around 86% of the dealers are providing after sale services to the customers, retailers, wholesalers, etc.
MEDIA FOR MARKETING:
Media Internet Trade Magazines Others Total Number 19 35 11 65
media
Internet Trade Magazines Others
INTERPRETATION:
Easy to cook, easy to wash
The major media for marketing used by them is the trade magazines followed by internet
DEALER’S CONSUMPTION (PER YEAR)
Name of Company Pan Casserole Tawa Kadai Milk Pan Stock Pot Handi Pressure Cooker Total Quantity 3100 1800 5600 2900 2500 600 3800 5000 25300
Quantity
6000 5000 4000 3000 2000 1000 0 Quantity
Easy to cook, easy to wash
INTERPRETATION: In this graph we can interpret that the tawa is having more annual demand as compared to the other products.
Finance Feasibility
Easy to cook, easy to wash
ASSUMPTIONS
? There are 360 working days in a year. ? Manufacturing is done evenly in all the months throughout the year. ? Estimated production will be done and sales of them will be realized. ? Fixed Assets are valued at historical cost less depth as per income tax act, 1961 on WDV basis.
? For calculating working capital required debtors are valued at selling price. ? Profit is distributed among shareholders as per availability of cash. ? Out of total sales 30% are credit sales. ? Out of total purchases 30% are credit purchases. ? Income tax is due and paid regularly at 35% of PBT. ? 30% discount is provided to distributor on MRP. ? Net sales are exclusive of 5% excise duty 4% VAT. ? We have taken 11% secured loan from SBI. ? Repayment of loan is started from 3rd year. ? We have calculated raw material consumption for 1 month because it is not feasible to bifurcate them for the different products in different period. ? We have taken an insurance of Rs. 2500000 against machineries. ? Utilized production capacity is 70% of total capacity and we have utilized 90% capacity. ? We are starting variety of different products at the beginning of the 3rd year.
Easy to cook, easy to wash
Easy to cook, easy to wash
Cost of Project
Particulars Amount(Rs.) Land 22740000 Building 10000000 Machinery 3720000 Furniture 174800 Computer & 180000 other equipment Preliminary 700000 Expenses Working capital 1000000 Total 38514800
Means of Finance
Particulars share capital(2219480shares of Rs.10 each fully paid 11% loan from SBI Total Amount(Rs.) 22194800 16320000 38514800
Cost of land
Particulars Area(square feet) Rs per square fee Total
Easy to cook, easy to wash
Basic cost of land Document charges other charges Total
30000
750
22500000 200000 40000 22740000
Particulars Factory Building Office Building Total
COST OF CONSTRUCTION Area in square feet Rs per Total square feet 20000 125 8000 937.5
2500000 7500000 10000000
Cost of machinery
Particulars Pressing machine Finishing machine Polishing machine Spot welding machine Anodized plant Stamp machine Spray machine Total No. of machine 1 2 2 2 1 1 4 cost(Rs.) total cost 950000 950000 50000 100000 35000 70000 80000 160000 2200000 2200000 100000 100000 35000 140000 3720000
Cost of Furniture
Particulars Sofa set Revolving chair Comfort chair Cabin table Cupboard Dustbin A.c. Lights Unit 2 8 15 9 2 8 1 30 Unit Total price Rs. 25000 50000 1500 12000 1000 15000 2500 22500 4000 8000 100 800 25000 25000 250 7500
Easy to cook, easy to wash
Ceiling fans Exhaust fans Computer Telephone Printer Fire-extinguish equipment Total
20 4 6 5 1 2
1400 28000 1500 6000 25000 150000 3000 15000 5000 5000 5000 10000 354800
Preliminary expenses
Particulars Advertisement expenses Market survey expenses Other expenses: Water supply Electricity connection Water purifier Documentation charges Total Rs. 500000 25000 100000 20000 5000 50000 700000
Factory overheads
Years Power & Fuel Indirect Wages Depreciation: Building Furniture Machinery Repair & Maintenance Bonus Insurance Total 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 1200000 1248000 1309000 1325500 1367600 540000 574800 606000 623400 639000 500000 48000 558000 200000 450000 18853 474300 220000 405000 15083 422655 235000 208000 500000 3700738 364500 12066 359257 320000 274000 500000 3778723 328050 9653 305368 342000 318400 500000 3810071
200000 192000 500000 500000 3746000 3677953
Administration overhead
Easy to cook, easy to wash
Years Electricity Salary Bonus Depreciation Furniture Building Office Expenses Total
2011-2012 201220132010420152013 2014 2015 2016 120000 122000 131000 128500 130400 1722000 1891200 2020800 2128800 2210400 200000 192000 208000 274000 318400 24000 500000 100000 2666000 37707 450000 80000 2772907 30165 405000 75850 2870815 24132 364500 89200 3009132 19306 328050 98750 3105306
Selling and distribution overheads
Particulars Sales Executive Salary Bonus Advertisement Exp. Rent of Vehicles Packing Charges Other Charges Total 20112012201320142012 2013 2014 2015 240000 264000 282000 297600 100000 96000 104000 137000 1200000 1037800 953500 1281250 1000000 918000 928000 982000 150000 174200 176500 186750 150000 170000 172000 195000 2840000 2660000 2616000 3079600 20152016 312000 159200 1015500 983000 184500 187000 2841200
Easy to cook, easy to wash
Calculation of Depreciation
Particular 20112012 2012-2013 20132014 20142015 2395045 0 2395045 359257 2035788 20152016 2035788 0 2035788 305368 1730420 MACHINERIES 3720000 3162000 2687700 0 3720000 558000 3162000 0 130000 3162000 2817700 474300 422655 2687700 2395045
Opening balance Additional Less: Depreciation Closing balance Opening balance Less: Depreciation Closing balance
FURNITURE 174800 139300 35500 139300 27860 111440
111440 22288 89152
89152 17830 71322
71322 14264 57058
Opening balance Less: Depreciation Closing balance Opening balance Less: Depreciation Closing balance
COMPUTERS AND OTHER EQUIPMENTS 180000 143500 114800 36500 143500 28700 114800 22960 91840
91840 18368 73472
73472 14694 58778
BUILDING 10000000 9000000 1000000 9000000 900000 8100000
8100000 7290000 810000 729000
6561000 656100 5904900
7290000 6561000
Salary Structure
Designation No. of 20112012201320142015-
Easy to cook, easy to wash
2012
2013
2014
2015
2016 2433600 432000 234000 196800 312000 378000 378000 378000 540000 105600 69000 138000 5595000
workers Workers 40 2184000 2308800 2340000 2371200 Supervisor 4 360000 384000 408000 420000 Accountant 1 180000 198000 210000 222000 Clerk 1 144000 159600 172800 184800 Sales executive 1 240000 264000 282000 297600 Marketing 1 300000 330000 348000 366000 Manager Production 1 300000 330000 348000 366000 Manager Finance 1 300000 330000 348000 366000 Manager M.D. 1 420000 456000 498000 522000 Receptionist 1 78000 87600 96000 102000 Peon 1 60000 63600 66000 67800 Watchman 2 120000 127200 132000 135600 Total 4686000 5038800 5248800 5421000
Repayment of loan
Year 1 2 3 4 5 Amt. Interest Principal Balance Total amt. Payable Paid Paid 16320000 1793000 0 16320000 1793000 16320000 1793000 0 16320000 1793000 16320000 1573000 2000000 14320000 3573000 14320000 1353000 2000000 12320000 3353000 12320000 1133000 2000000 10320000 3133000
Consumption of Raw Material
Particulars Aluminum circle Canbay powder Price(Rs.) 160/k. g. 150/k. g. Consumption(monthly) 3800k.g 30k.g.
Easy to cook, easy to wash
Choona powder Screw Whistle Rubber gasket Handle Safety valve Packing material Kerosene Oil Binder Pigment Nikal Acid Sulphuric Acid Boric Acid Silicon Fluropolymer Perfluropolymer
25/k. g. 200/k. g. 65/unit 130/unit 35/unit 35/unit 10/unit 20/ lit. 70/lit. 350/k.g 200/k.g 850/lit 1100/lit 900/lit 600/k.g 500/k.g 1000/lit.
50k.g. 25k.g. 1000units 1000units 4500units 1000units 4600units 50ltr. 10ltr. 10k.g 10k.g 12ltr. 15ltr. 13ltr. 15k.g 15k.g 18ltr.
Cost sheet
Year Particular Raw Material Direct Wages Direct Expenses Prime Cost Factory overheads Factory cost Administration overheads 20112012 Amt. 20122013 Amt. 20132014 Amt. 20142015 Amt. 20152016 Amt.
13584000 14164700 15102000 15552000 16019000 2184000 2308800 2340000 2371200 2433600 450000 470000 410000 475000 395200 16218000 16943500 17852000 18398200 18847800 3746000 3677953 3700738 3778723 3810070
19964000 20621453 21552738 22176923 22657870 2666000 2772907 2870815 3009132 3105306
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Cost of production Add: Opening Stock of Finish Goods Less: Closing stock of Finish Goods Cost of goods sold Selling & Distribution overheads Cost of sales Profit sales
22630000 23394360 24423553 25186055 25763176 0 2775816 2039705 3604680 3604680 4993943 4993943 4341480 4341480 4081814
19854184 21829385 23034290 25838518 26022842 2840000 2660000 2616000 3079600 2841200
22694184 24489385 25650290 28918118 28864042 5689316 7287115 6610510 7657132 7549498
28383500 31776500 32260800 36575250 36413540
Profit & loss account
Particulars Sales Add:cl.stock raw material Finished goods other income Total income Less: Opening stock raw material Finished Goods Purchase 2011-2012 28383500 2264700 2039705 0 32687905 0 0 15848700 2012-2013 2013-2014 201420152015 2016 31776500 32260800 36575250 36413540 2300000 3604680 0 37681180 2264700 2039705 14200000 1948000 2124000 2239000 4993943 4341480 4081814 28000 28000 28000 39230743 43068730 42762354 2300000 3604680 14750000 1948000 4993943 1572830 2124000 4341480 1613430
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Carriage Inward direct wages factory overhead Gross Profit Less: Admin.overhead selling o/h Financial Charges(interest) Non cash expenses w/f N.P/PBT Less: Tax provision@35% PAT Less:G.R.@5% Profit Distributed Transferred to B/S
200000 2184000 3746000 10709205 2666000 2840000 1793000 140000 3270205 1144572 2125633 106282 637690 1381661
210000 2308800 2677953 12980022 2772907 2660000 1793000 140000 5614115 1964940 3649175 182459 3101799 364917
190000 230000 203700 2340000 2371200 2433600 3700738 3778723 3810071 12345325 14018864 13715503 2870815 3009132 3105306 2616000 3079600 2841200 1573000 1353000 1133000 140000 5145510 1800929 3344581 167229 1672291 1505061 140000 6437132 2252996 4184136 209207 3765722 209207 140000 6495997 2273599 4222398 211120 3589038 422240
Balance sheet
Particulars 20112012 20122013 20132014 20142015 20152016
SOURCE OF FUNDS Shareholder’s funds share capital reserve & surplus General reserve profit & loss a/c Borrowed funds secured loans
22194800 22194800 22194800 22194800 22194800 106282 288741 455970 665177 876297 1381661 1746578 3251639 3460840 3883082
16320000 16320000 14320000 12320000 10320000
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Total Rs. APPLICATION OF FUNDS Fixed assets Gross block less: depreciation Net block Investments 8% Govt. security A. Current assets Raw material Finish goods Debtors Cash & bank B. current liabilities o/s expenses Selling& distribution. Wages & salary Creditors for raw material Net working capital(A-B) Misc. Expenditure Preliminary expenses Total
40002743 40550119 40222409 38640817 37274179
36814800 35184800 33883940 32606037 31481582 1630000 1430860 1277903 1124455 990427 35184800 33753940 32606037 31481582 30491155
0
0
350000
350000
350000
2264700 2039705 800000 623538 5727943
2300000 3604680 950000 1381499 8236179
1948000 4993943 1020000 727329 8689272
2124000 4341480 1070000 882855 8418335
2239000 4081814 1130500 893258 8344572
300000 420000 750000 1470000 4257943
370000 650000 840000 1860000 6376179
420000 417900 865000 1702900 6986372
395000 428900 925200 1749100 6669235
424500 440050 1047000 1911550 6433022
560000
420000
280000
140000
0
40002743 40550119 40222409 38640817 37274179
Working capital statement
Particulars 1 2 3 4 5
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A. Current assets Raw material Finish goods Debtors Cash & bank B. Current liabilities o/s expenses Selling & distribution. Wages & salary Creditors for raw material Net working capital(A-B)
2264700 2039705 800000 623538 5727943
2300000 3604680 950000 1381499 8236179
1948000 4993943 1020000 727329 8689272
2124000 4341480 1070000 882855 8418335
2239000 4081814 1130500 893258 8344572
300000 420000 750000 1470000 4257943
370000 650000 840000 1860000 6376179
420000 417900 865000 1702900 6986372
395000 428900 925200 1749100 6669235
424500 440050 1047000 1911550 6433022
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Cash flow statement
Particulars (A)Cash flow from operating activity Opening profit from p & l a/c (-)Closing balance of P/L a/c Add: All non cash & non operating items Depreciation Preliminary expense w/f Prov. for tax Profit distributed & dividend Transfer to General Reserve Less: All non operating incomes Interest received. Profit from operating activity Change in w. c. Cash from operation Less: Income tax paid Net cash flow (B)Cash flow from investing activity Add: Cash inflow Interest received Less: CASH Outflow Purchase of Fixed assets Investment Preliminary 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
1381661 -
1746578 1381661
3251639 1746578
3460840 3251639
3883082 3460846
1630000 140000 1144572 637690 106282
1430860 140000 1964940 3101799 182459
1277903 140000 1800929 1672291 167229
1124455 140000 2252996 3765722 209207
990427 140000 2273599 3589038 211120
0 5040205 (3634405) 1405800 (1144572) 261228
0 7184975
-28000 -28000 -28000 6535413 7673581 7598420 472663 8146244 (2252996) 5893248 246616 7845036 (2273599) 5571441
(1360275) (1264363) 5824700 5271050 (1964940) (1800929) 3859760 3470121
0
0
28000
28000
28000
(36814800) 0 700000 0
(130000) (350000)
-
-
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Expenses Net cash flow from 37514800 investing activity (C )cash Flow from financing Activity Add: Cash inflow Issue of share Loan Less: Cash outflow Repayment of loan Dividend paid Net Cash flow from Financing Activity
-
(452000)
28000
28000
22194800 16320000 (637690) 37877110
-
(2000000)
(2000000) (3765722) (5765722)
(2000000) (3589038) (5589038)
(3101799) (1972291) (3101799) (3692291)
Net cash 623538 flow(A+B+C) Add: Opening cash 0 Balance Closing cash 623538 Balance
757961 623538 1381499
(654170) 1381499 727329
155526 727329 882855
10403 882855 893258
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RATIO ANALYSIS
NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. RATIOS Current ratio Quick ratio Gross profit ratio Operating profit ratio Net profit ratio Return on capital employed Return on share holders? fund Return on total asset Interest coverage ratio Debt-service coverage ratio Debt- Equity ratio Proprietary ratio Fixed asset turnover ratio Total assets turnover ratio Capital turnover ratio Working capital turnover ratio Stock turnover ratio Debtors? ratio Creditors? ratio FORMULA Current asset/ Current liability Current asset-stock/Current liability-B.O.D GP/Sales*100 Operating profit/Sales*100 NP/Sales*100 EBIT/Capital employed*100 PAT/Shareholders? fund NP/Total assets*100 EBIT/Interest PAT+Interest+Non cash exp./Interest+ Installment Debt/Equity Proprietary fund/total assets*100 Sales/ Fixed assets Sales/Total asses Sales/Capital employed Sales/W.C. COGS/Avg. stock Debtors+ B/R/Credit sales*360 days Creditors+ B/P/Credit purchase*360days
RATIOS
Liquidity ratio:-
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Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Current ratio 3.90:1 4.43:1 5.10:1 4.81:1 4.37:1
Quick ratio 0.97:1 1.25:1 1.03:1 1.12:1 1.1:1
Profitability ratio:? G.P. ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 37.73 40 38 38.32 37.66
? Operating Profit
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 17.84 23.31 20.83 21.30 20.95
? Net Profit Ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 Ratio (%) 7.49 11.48 10.37 11.44
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2015-2016
11.80
? Return on capital employed
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 12.84 18.46 16.75 20.16 20.39
? Return on share holder’s fund
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 8.96 15.06 12.91 15.90 15.67
? Return on total assets
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 5.20 8.69 8.03 10.40 10.76
? Interest Coverage ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio(In Times) 2.82 4.13 4.25 5.74 6.71
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? Debt Service Coverage Ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio(in times) 1.77 2.03 2.07
? Debt- Equity Ratio:Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios 0.69 0.67 0.55 0.47 0.38
? Proprietors Fund Ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 57.89 57.70 62.20 65.39 68.79
? Fixed assets turnover ratio
Year 2011-2012 2012-2013 Ratios (times) 0.81 0.94
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2013-2014 2014-2015 20015-2016
0.99 1.16 1.19
? Total Asset Turnover ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios(in times) 0.69 0.76 0.77 0.91 0.93
? Capital Turnover ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios (in times) 0.72 0.79 0.81 0.95 0.98
? Working Capital turnover ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios(in times) 6.67 4.99 4.62 5.48 5.66
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? Stock turnover ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios (in times) 6.47 2.96 2.53 2.81 2.96
? Debtors’ ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios(in days) 34 36 38 35 37
? Creditors Ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (in days) 57 71 70 71 78
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Statement Showing Sales for the Different Products
Product Milk pan Fry pan Tawa1 Tawa2 Handi Casserole1 Casserole2 Kadai Pressure Cooker1 Pressure Cooker2 Pressure Cooker3 Total Opening stock 0 0 0 0 0 0 0 0 0 0 0 2011-2012 Production Sales 6000 5500 0 0 14400 13500 0 0 8400 7600 10080 9200 0 0 11400 10600 11520 10800 0 0 0 0 Closing stock 500 0 900 0 800 880 0 800 720 0 0 Total sales 1677500 0 4941000 0 4172400 3652400 0 4717000 9223200 0 0
61800 57200 2012-2013 Production Sales 500 0 900 0 800 880 0 800 720 0 0 6600 0 15000 0 9000 11400 0 12000 12000 0 0 6200 0 14400 0 8500 10900 0 11300 11500 0 0
4600
28383500
Product Milk pan Fry pan Tawa1 Tawa2 Handi Casserole1 Casserole2 Kadai Pressure Cooker1 Pressure Cooker2 Pressure
Opening stock
Closing stock 900 0 1500 0 1300 1380 0 1500 1220 0 0
Total sales 1928200 0 5400000 0 4819500 4425400 0 5175400 10028000 0 0
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cooker3 Total 4600 66000 62800 2013-2014 Production Sales 900 0 1500 0 1300 1380 0 1500 1220 0 0 3000 3200 4000 3450 9000 8300 8000 7250 8000 8050 7000 7100 6200 5350 11500 11650 7000 6950 4500 2800 3700 2250 7800 31776500
Product Milk pan Fry pan Tawa1 Tawa2 Handi Casserole1 Casserole2 Kadai Pressure Cooker1 Pressure Cooker2 Pressure Cooker3 Total
Opening stock
Closing stock 700 550 2200 750 1250 1280 850 1350 1270 800 550
Total sales 995200 1473150 3112500 1769000 4564350 2882600 979050 5335700 6060400 2823100 2265750
7800
71000 67250 2014-2015 Production Sales
11550
32260800
Product Milk pan Fry pan Tawa1 Tawa2 Handi Casserole1 Casserole2 Kadai Pressure Cooker1 Pressure Cooker2 Pressure Cooker3
Opening stock 700 550 2200 750 1250 1280 850 1350 1270 800 550
Closing stock 550 350 1250 600 800 600 570 900 910 650 420
3200 3350 4350 4550 8500 9450 8200 8350 7800 8250 6700 7380 6400 6680 11400 11850 7100 7460 4800 3250 4950 3380
Total sales 1041850 1942850 3543750 2037400 4677750 2996280 1222440 5427300 6505120 3776850 3403660
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Total
11550
71700 75650 2015-2016 Production Sales
7600 365752250
Product Milk pan Fry pan Tawa1 Tawa2 Handi Casserole1 Casserole2 Kadai Pressure Cooker1 Pressure Cooker2 Pressure Cooker3 Total
Opening stock 550 350 1250 600 800 600 570 900 910 650 420
Closing stock 1020 330 640 920 490 880 480 570 740 530 1370
3950 3480 4570 4590 8620 9230 8840 8520 7800 8110 7250 6970 6530 6620 11510 11840 7250 7420 4840 4480 4960 3530
Total sales 1082280 1959930 3461250 2078880 4598370 2789220 1211460 5422720 6470240 3784480 3554710
7600
75640 75170
7970
36413540
CAPITAL BUDJETING
? PAYBACK PERIOD
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 PAT 2125633 3649175 3344581 4184136 4222398 Depreciation Preliminary exp. Cash Inflow Written off 1630000 140000 3895633 1430860 140000 5220035 1277903 140000 4762484 1124455 140000 5448591 990427 140000 5352825
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Total cash inflow
24679568
Cash out flow=37514800
Payback period is not possible because whole amount of outflow is not recovered in 5 years.
? Discounted payback period: It is also not obtained because whole amount is not recovered in 5 years ? Average rate of return:
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Total Pat 2125633 3649175 3344581 4184136 4222398 17525923 Avg. Investment 35999800 34469370 33244989 32043810 30986369 166744338
Average PAT× 100 Average investment 3505185 33348868 = 10.51% ? 11% × 100
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? NPV (11% cost of capital)
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Total Cash P.V. Discounted inflow Factor inflow 3895633 0.901 3509965 5220035 0.812 4238668 4762484 0.731 3481376 5448591 0.659 3590622 5352825 0.594 3179579 18000210
Cash outflow = 37514800 NPV= Net cash inflow- Net cash outflow = 18000210-37514800 = (- 19514590) NPV is negative because net cash outflow is greater than net cash inflow.
? IRR:
Fakepayback period = Cash outflow Avg. annual cash inflow = 57514800 4935914 = 7.6 years The fakepay back period is out of range in annuity table. So calculation of IRR is also not possible.
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STATEMENT OF BREAK-EVEN SALES
Particular Fixed cost Salary of permanent staff Insurance Depreciation Interest on loan Preliminary exp. Written off Bonus Electricity OTHER exps. Total Variable cost Wages to workers Bonus Electricity Carriage inward Repair &maintenance Raw material consumed Advertisement Packing Rent of vehicles Other charges 2502000 500000 1630000 1793000 140000 300000 120000 180000 7165000 2730000 500000 1430860 1793000 140000 192000 122000 176000 7083860 2908800 500000 1277903 1573000 140000 208000 131000 151850 6890553 3049800 500000 1124455 1353000 140000 274000 128500 198200 6767955 3161400 500000 990427 1133000 140000 318400 130400 229950 6603577 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
2184000 200000 120000 1200000 200000 11544295 1200000 1000000 150000 150000
2308800 192000 1248000 210000 220000 12599725 1037800 174200 918000 170000
2340000 208000 1309000 190000 235000 13712737 953500 176500 928000 172000
2371200 274000 1325500 230000 320000 16204463 1281250 186750 982000 195000
2433600 318400 1367600 203700 342000 16278666 1015500 184500 983000 187000
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Total (A) Sales less:vari.cost Contribution less: fixed cost Profit P/V ratio (B) Break even sales(Rs.) Margin of safety (A-B)
17948295 28383500 17948295 10435205 7165000 3270205 36.77% 19485994
19078525 31776500 19078525 12697975 7083860 5614115 39.96% 17727377
20224737 32260800 20224737 12036063 6890553 5145510 33.85% 20356139
23370163 36575250 23370163 13205087 6767955 6437132 36.10% 18747798
23313966 36413540 23313966 13099574 6603577 6495997 36.97% 18358568
8897506
14049123
11904661
17827452
18054972
SWOT ANALYSIS
“SWOT analysis is the analysis which shows the actual feasibility of the project reflecting the strengths, weaknesses, opportunities and threats.”
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Strengths of our project:? Since the location of our firm is situated at Odhav which is an industrial area, we enjoying benefits of labour force at cheap rate and alsoin emergency the workers (i.e. temporary workers) can be held very easily at daily basis. ? Our firm is situated on the high-way so easy transportation facility is available.
? There are no any other manufacture companies dealing with manufacturing of non-stick cookware, so we can get more market coverage area.
Weaknesses:-
? This industry involves huge cost in terms of installation. ? Lack of awareness about the product among the customers. ? Lack of confidence among the customers, as it is a new segment in cookware.
Opportunity:-
? There are few competitors in the market; there is a scope of getting maximum share in the market.
Threats:
The following strategies of the competitors can affect our business adversely.
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? Price ? Better services ? Use of new technology: New technology is coming every now and then. So the company might be unable at a time to adopt it.
? Marketing & fluctuations of prices
CONCLUSION
By conducting and extensive research on all aspects of establishing Supreme nonstick cookware Manufacturing Unit, We conclude that it is infeasible to carry on.
Here, we would like to conclude that our project with an enormous knowledge about non-stick cookware. This task has provided us with much needed breathe stronger mundane activities that one has to undergo.
A special thanks giving not only for the co-operation of Garuda Private Limited, that we visited but also to our professors specially to our faculty guide Mrs. Hiral Parikh who gave us such a wonderful opportunity to learn about practical aspect of life and team work. It offered us an opportunity to have healthy interactions among ourselves and with the faculties which we always cherish.
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This project made us realize that how difficult is to bring a thing into reality. Giving concept is not only thing but having it started with scratch to it full competition is actual counts the most.
BIBLIOGRAPHY
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Marketing Management (Philip Kotler)
? Financial Management (I. M. Pandey)
? Managerial Economics (Craig H. Petersen)
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WEBOGRAPHY
? www.google.com ? www.wikipedia.com
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THANK YOU
doc_407468921.docx
Cookware and bakeware are types of food preparation containers commonly found in a kitchen. Cookware comprises cooking vessels, such as saucepans and frying pans, intended for use on a stove or range cooktop. Bakeware comprises cooking vessels intended for use inside an oven.1
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A FEASIBILITY REPORT ON NON-STICK COOK WARE
GROUP : A THIRD YEAR M.B.A. 2010-11
K.S.SCHOOL OF BUSINESS MANAGEMENT GUJRAT UNIVERSITY AHEMADABAD-380 009
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CERTIFICATE
This is to be certify that members of Group A of third year M.B.A. of K.S.School of Business management have successfully completed their feasibility report on non-stick cookwarefor the academic year 2010-11 and have duly submitted to the institute.
Date of Submission: Name: Sign:
Project Guide:
K.S.School of Business Management Gujarat University Ahemedabad
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PROJECT TEAM
Sr. No.
1 2 3 4 5 6 7 8 9 10 11
Name
BharvikVarmora ChauhanDivya ChauhanKomal FufaliyaPriyank JadawalaRujuta KhatariyaGopi PanthShah VadhiyaBhavika DhamasaniaNiddhi Mendapara Rahul Patel Abhishek
Roll No.
3004 3008 3009 3013 3017 3021 3034 3074 3093 3106 3117
Index
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Serial No. 1
2 3
Particular Introduction: ? Acknowledgement ? Preface ? Project at a glance History of Nonstick Cookware Legal feasibility: ? Formation of private company Environment scanning: ? Pest analysis Technical feasibility: ? Input ? Process ? Plant layout Human resource feasibility: ? Organization chart ? Job Profile ? Employee welfare & Retention Marketing feasibility: ? 4P?S of Marketing ? Market Research ? Findings & conclusion Financial feasibility: ? List of Assumption ? Cost of Project ? Means of Finance ? Cost of Land ? Cost of Machineries ? Cost of Furniture ? Preliminary Expenses ? Factory Overheads
Page No.
4 5
6
7
8
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? Administration Overheads ? Selling And Distribution Overheads ? Calculation of Depreciation ? Salary Structure ? Repayment of Loan ? Consumption of Raw material ? Cost Sheet ? Profit And Loss Account ? Balance sheet ? Working capital statement ? Cash Flow Statement ? Ratio Analysis ? Statement showing sales for the different products ? Capital Budgeting ? Statement of Break-Even Sales 9 10 11 12 SWOT Analysis Conclusion Bibliography Webography
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INTRODUCTION
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Acknowledgement
It is true that world outside name many of a time different from what we are perceived. Similarly it is impossible that the theoretical knowledge is enough for doing a project, getting practical knowledge is an important thing, which is not possible without the support, guiding, motivation and inspiration provided by many persons. Hence our project bears the imprints of many people.
The project work assigned to us at „Third Year M.B.A? level of Feasibility Report is really a very motivated task. Here, we present our project on „Nonstick Cookware?.
We indebted to Prof. SarlaAchutan, the director of K.S. School of Business management, who gave us as an approving chance of implying our self in such a project.
We are also thankful to the contributions made by our faculty guide Mrs. Hiral Parikh, who has been a constant motivator and guide to us.
It is really not name each and everyone who helped us in our project work in one or the other way but we would sincerely like to thank every one of them for their kind help and guidance.
Preface
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MBA is a stepping stone to management career, in order to achieve practical, positive and concert result, the classroom learning needs to be efficiently fitted to the realities and the situation existing outside the classroom which is in the market this is particular what we learn in the management.
Every study is incomplete without having a well-planned and concrete exposure given to a student. Management studies are not exceptions. The study of management only as a theoretical knowledge is just like a wondering ship in ocean without a compass, so at this side it provides sound basis to adopt the theoretical knowledge and on the other hand it gives opportunity for exposes to real market situation. It gives us the basic practical experiences, which serve us a compass in the directionless ship; this enables the ship to reach its destination against all odds from all of its rivals.
This project is given to the student for having a firsthand knowledge of business activities and ads to their existing stock of information.
PROJECT AT A GLANCE
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Name Product Constitution Industry address Date of incorporation Total cost of project Means of finance: Share capital Loan from SBI Break-Even Sales
SUPREME Nonstick Pvt. Ltd. Nonstick cookware
Cookware
Private limited Plot no.49 Odhav industrial area, Odhav, Ahemedabad April 1,2011 3,85,14,800 2,21,94,800 1,63,20,000 1,83,58,568
History of Nonstickcookware
With busy schedules and long to-do lists, people are constantly looking for ways to save time. From drive-through to carry-out, restaurants offer more ways to get food fast. For people who prefer home cooking, cookbooks and Web sites are boasting meals that can be completed in less than 30 minutes and make-ahead options to reheat at dinnertime.
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But for some chefs, it's less about the time it takes to make food and more about the time it takes to clean up. That's where nonstick cookware comes in. Nonstick cookware lets people fry, sauté, and stew and bake with less mess and less fat. Non-stick cookware accounts for most of aluminum cookware sales. Cooks have enjoyed the convenience since it was introduced in the 1950s. Non-stick cookware was invented by Marc Gregorian in 1954. Te-Fal was founded in 1956 to manufacture the new cookware, under the Te-Fal brand. Marketed in chic magazines, Te-Fal sales reached one million pieces a month in the United States by 1961. Te-Fal remains the leading maker of non-stick cookware, but numerous other brands, including Wherever, All-Clad, Faber ware, Viking, and Circling, offer non-stick cookware as well.Non-stick cookware requires less butter or oil for frying. It cleans up much more easily than conventional pots and pans, requiring little if no scrubbing.
Legal feasibility
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FORMATION OF COMPANY
1.
•Memorandum of association
Name clause:
The name of our company is “SUPREMENonstick Cookware Pvt. Ltd.”
Registered office clause:
Registered office of company is situated at below mention address: 302,Polaris Tower, SardarPatel Stadium, Ahmedabad.
Capital clause:
The authorized, issued, subscribe and paid up capital of the company is Rs.2,21,94, 800 divided in to equity share of Rs.10 fully paid up.
Object clause:
Main objective of SUPREMENonstick Cookware Pvt.Ltd. is to manufacture of nonstick cookware and sell within the Gujarat.
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Liability clause:
The Liability of members of company will be limited up to nominal value of share subscribed by them.
Association Clause:
We, whose names are mentioned below, are willing to form a private limited company and have obtained qualification shares as required by the Article of Association.
BharvikVarmora ChauhanDivya ChauhanKomal FufaliyaPriyank JadawalaRujuta KhatariyaGopi Shah Panth VadhiyaBhavika DammasaniaNiddhi Mendapara Rahul Abhishek
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2.
• ARTICLE OF ASSOCIATION
Private company:
The company is private limited company and accordingly the following provisions shall have effect namely. ? The number of members for the time being of the company(not including person who are in the employment of the company and persons who having being formally in the employment of the company where members of the company while in the employment and have continue to be member after the employment ceased)is not to exceed 50,but where two or more person hold one or more in the company jointly they shall for purpose of this paragraph be treated as a single member ? Any invitation to the public to subscribe for any share or debenture of the company is hereby prohibited ? The right to transfer of the share o the company shall be restricted in the manner and to the extent here in after appearing.
Share capital:
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The authorized share capital of the company is Rs. 22194800 divided in to equity shares of Rs.10 each. The capital of the company shall be subjected to increase or decrease and the share being consolidated or subdivided in accordance with the regulation of the company abide the legislative provision for the time being.
Increase of capital:
The company may from time to time; by ordinary resolution increase the share capital and such is divided into shares of such amount as may be specified in the resolution.
Power to reduce the capital:
The company shall have power to reduce share capital in the manner provided in the section 100 to 105 of the company act 1956 or statutory modification thereof.
Only absolute ownership recognized :
The company shall not be bound to recognize or take notice o any interest or claim in or upon any share other than the ownership of the register holder for the time being and the company shall be entitled to treat such ownership as absolute notwithstanding to the contrary.
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Restriction on transfer of share:
As provided by the article, a share shall not be transferred to a person who is not a member so long as any member or other person selected by directors as to whom it is desirable in the interest of the company to admit to membership, can be found to purchase it as at the fair value borrowings.
Power to borrow:
Subject to provision of section 292 of the company?s act 1956, the board may from time to time as its discretions accept deposit from members either in advance of calls or otherwise and generally from any source or raise for the purpose of the company, borrow or secured the payment of such sums as it think fit.
Payment of borrowing:
The board may secure the repayment of money in such manner and upon such time and condition on all respect as it think fit and particular by the issue or bonus share, preference share whether perpetual or redeemable, debenture or debenture stock or by creating any mortgage, charge or other security on the other undertaking of the whole or any part of the property of the company both present and future including its uncalled capital for time being.
Gujarat pollution control boardcertification:
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The unit will be eco-friendly and there will be no emission of effluent by the company.Yet it has to obtain permission from Gujarat Pollution Control Board. It is available easily as unit is a non- polluting unit.
Others:
Being a manufacturing company, it will be governed by following act: 1. The factory act,1948 2. The industrial dispute act,1947 3. The employees? provident fund act,1952 4. The payment of gratuity act,1972 5. The payment of bonus act,1965 6. Monopolies and restrictive trade practices act(MRTP) The provision of above would be taken in to consideration as and when need arise.
We,the several people, whose names are subscribes, are desirous of being formed into a company into pursuance of these Articles of Association and we respectively agree to take no. of share in the capital of company. Name of subscribers No. of equity share Name and signature of taken by each witness & address subscriber occupation (each of Rs.10) 2017709 GAURANG N. SHAH & CO. 2017709 CHARTERED 2017709 ACCOUNTANTS 2017709 201,ADITRAJ 2017709
BharvikVarmora ChauhanDivya ChauhanKomal FufaliyaPriyank JadawalaRujuta
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KhatariyaGopi Panth Shah VadhiyaBhavika DhamasaniaNiddhi Mendapara Rahul Patel Abhishek
TOTAL
2017709 2017709 2017709 2017709 2017709 2017709 22194800
ARCADE, SATELLITE, AHMEDABAD-19
THE FOLLOWING DOCUMENTS ARE REQUIRED TO BE FILLED WITH THE REGISTAR OF COMPANYS
FORM -1
DECLARATION OF COMPLIANCE I hereby declare that all the provision for incorporation of SUPREME NONSTICK COOK WARE PVT.LTD..has been duly complied with.
Signature/(Advocate)
FORM-18
ADDRESS OF REGISTERED OFFICE The address of registered office is: SUPREME Non stick Cookware Pvt. Ltd.
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302, Polaris tower, Sardar Patel Stadium, Ahmedabad
POWER OF ATTORNEY
SUPREME Non stick Cookware Pvt. Ltd. Company would hereby authorized to make addition, subtraction of any document filed to register of company.
FORM- 1A
Form 1-A has been filed by promoter with the fees of Rs.500/The memorandum of association of “SUPREME Non stick Cookware Pvt. Ltd.” has been filed to register of company with the registration fees of Rs.46,500/-
ARTICLES OF ASSOCIATION AND OTHER DOCUMENT The memorandum of association of “SUPREME Non stick Cookware Pvt. Ltd.” has been filed to register of company with the registration fees of Rs.500/- And other document has been filed to register of company with the average fees o Rs.500/- per document.
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3.
• certificate of incorporation
CERTIFICATEOF INCORPORATION No. 011- EAD8392 of 2011-2012 I hereby certified that the SUPREME NONSTICK COOKWARE PVT. LTD. is this day incorporated under the Companies Act, 1956(No.1 of 1956) and that the company is limited. Given under my hand at AHMEDABAD This day of 1st APRIL, 2011
Seal of
Sd/-
THE REGISTER OF COMPANYS,
Register of Companies GUJARAT
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GUJARAT
Dadra & Nagar Haveli
Environment Scanning
Pest analysis
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1. Political-Legal environment:
Political & Legal environment is an important element particularly in a mixed economy like India & affects directly the working of business organizations.
To set up the business after 1991, economic reform year is become easy in India & the government through various legislations has provided various incentives for the development of business.
Stable political environment is very important for successful operation of a business. It covers those factors, which either restrain or facilitate the business through the govt. action. It may include political atmosphere, political parties, govt. administration, political stability etc.
The legal environment for the industry is also liberal and removal of quota restrictions from January 2005 has opened up newer horizons for the country.
There are some laws related to labors. As far as product is concerned following laws affect it which is mentioned below with its address of the offices.
Gujarat pollution control board ParyavaranBhavan,
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Sector- 10A, Gandhinagar Laws relating to labours: ? ? ? ? ? ? ? Industrial dispute act, 1947 Industrial trade union act, 1946 Industrial relation act, 1946 Industrial Employment act(standing orders),1946 Workmen compensation Act,1923 Payment of wages act,1936 Equal remuneration act
2. Economic environment
Economic environment is the most important environmental factor which the business organizations take into account. After the economic reforms of 1991, India is continuing to move forward economic growth.
3. Socio-Cultural Environment:
Socio-cultural environment is quite comprehensive because it may include the total social factors within which an organization operates.
Cultural and social environment includes expectations of the society from the business, attitude of society towards structure, responsibility
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&organizational positions, customs, traditions & conventions, class structure &labours mobility & level of education. Our enterprise will not be causing any damage to the society; as such it is situated in the industrial area.
4. Technological environment:
The technological environment refers to the sum total of knowledge providing ways of doing things. The technological environment of the country is fast changing either because of import of technology from foreign countries or because of technology generated out of research and development within the country. In India, the govt. is also encouraging the development of internal technology through various incentives to the business organizations concerned as well as through other institutions & laboratories of council of scientific & Industrial Research and other technical institutions.
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Feasibility
A report which projects the viabilities of a venture with respect to different dimensions is called feasibility report.” The feasibility study contain extensive data related to financial and operational impact and will include advantages and disadvantages of both the current situation and proposed plan. By feasibility we mean that the venture must be practically possible with respect to the following areas of management
? Technical feasibility:
In this era of globalization, company can?t survive without technology. Higher productivity can come with only reduction in cost which in return comes out of improved technology. Moreover, only adoption of any technology at one time can?t help the
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company to survive any longer unless it does not implement it at right time and place. So, to face market, company has to upgrade their technology from time to time.
? Marketing feasibility:
Just producing product is not the ultimate end but rather a beginning. It must be readily accepted and respected by the market.Marketing feasibility includes determining the proper market for the product and the different ways for the promotion of the product. It includes market research, market segmentation, customer relationship and all other factors related with the market. It also includes deciding on the mediums for promoting the product in the market.
? Financial feasibility:
Finance is the heart or the centre point, which should be given the most important because without it, the unit cannot survive. So before incurring the cost to the project, any entrepreneur has to find out the ways raising funds. And for that the cost are estimated and by that financial feasibility is checked. Here all the expenses which are going to incur in the establishment process and all the cost of purchasing machineries, raw materials etc, are taken into consideration.
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All the fixed costs and variable costs are determined and the sources of funds are also found out. For that different financial institutions and banks are taken into consideration.
? Human Resource feasibility:
The modern corporate world says, “Retain your employees; you will not have to retain your customers.” Human beings are the only living asset in an organization, so it should be handled very systematically. It involves the decisions relating to recruitment, selection, training and development etc in a fruitful manner.
?
Feasibility study steps:
Basically in a project work assigned to us, feasibility means to check whether it is possible and profitable to create a venture? And for those four types of feasibility study we have to make. Namely, (1) (2) (3) (4) Technical feasibility Marketing feasibility Financial feasibility HR feasibility
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Technicalfe asibility
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Input
Raw material
Particulars Aluminum circle Canbay powder Choona powder Screw Whistle Rubber gasket Handle Safety valve Packing material Price(Rs.) 160/k. g. 150/k. g. 25/k. g. 200/k. g. 65/unit 130/unit 35/unit 35/unit 10/unit Consumption(monthly) 3800k.g 30k.g. 50k.g. 25k.g. 1000units 1000units 4500units 1000units 4600units
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Kerosene Oil Binder Pigment Nikal Acid Sulphuric Acid Boric Acid Silicon Fluropolymer Perfluropolymer
20/ lit. 70/lit. 350/k.g 200/k.g 850/lit 1100/lit 900/lit 600/k.g 500/k.g 1000/lit.
50ltr. 10ltr. 10k.g 10k.g 12ltr. 15ltr. 13ltr. 15k.g 15k.g 18ltr.
Land & Building
Location Analysis:1.
Cost of production:
As our location is in industrial area, the production cost is low due to availability of workers at the reasonable rate.
2.
Transportation:
Our premise is located near the highway, so it is ease to transport. As well as we send the goods to the local distributor through transportation system
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3.
Competitor:
As no competitor exists for manufacturing nonstick cookware in regional marketit is good business opportunity for us.
4.
Infrastructural facility:
Electricity: Gujarat electricity board provides electricity in this area. As soon as we require additional connection, the same will be provided.
Water supply: The water is provided by the municipal corporation. But for the additional use we have installed our own bore.
Labor supply :
The skilled and unskilled labors are easily available in this area. The prevailing wage rate for unskilled worker is Rs.175 per day.
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MACHINERY: 1) Pressing / moulding machine:
? Cost: 9.5 lacks ? Durability: 8 to 9 years ? Function: Giving shape to Aluminum circle
? Supplier: Meghdut appliances
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2) Finishing machine:
? Cost: rs.50,000 ? Durability: 6 to 7 years ? Function: to remove an unwanted Aluminium from the article ? Supplier: Padmavati enterprise
3) Polishing Machine:
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? ? ? ?
Cost: Rs. 35,000 Durability: 7 to 8 years Function: for shining purpose Supplier: Padmawati enterprise
4) Spot welding machine:
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? ? ? ?
Cost: Rs.80,000 Durability:6 to 7 years Function: For handle fitting Supplier: Satyam international
5) Stamp machine:
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? ? ? ?
Cost:Rs.1,00,000 Durability:9 to 10 years Function: trademark the product Supplier: Radhekrishna enterprise
6) Spray machine:
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? ? ? ?
Cost: Rs.35,000 Durability: 8 to 9 years Function: To coat the article Supplier: Samyak appliances
7) Anodized plant:
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? ? ? ?
Cost:Rs.22,00,000 Durability: 7 to 8 years Function: To harden the product Supplier: Omkarapvt.ltd
Process Flow
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MOULDING PROCESS
FINISHING PROCESS
POLISHING PROCESS
COATING PROCESS
NONSTICK COATING
ANODISED PROCESS
PROCESS
Moulding/Pressing process:
Pressing machine is used to give a shape to different articles from the aluminium circle.Different sizes of aluminium circles are used for different article.Different kinds of die are used for different size of article
Finishing process:
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After the moulding process,articles are sent for finishing process. Finishing machine removes unwantedaluminium from the article.
Polishing process:
After finishing the article,polishing process is used for shining. For shining purpose canbay powder,kerosene and oil are used. After polishing the articles,articles are processed for coating.
Coating process
Coating process is divided in to two processes. 1.Anodised 2. Nonstick coating
Anodised process:
After Polishing,the articles are sent to anodized plant for hardening.Here in this process the polished articles are tied with an aluminium wire. Then this articles are hanged in Anodized plant. In the anodized plant there is a mixture of sulphuric acid and water. All articles are hanged in a line on the rod. After this the direct current of 200 ampere is passed which is then converted into alternate current.During this time Ammonia Gas is released from the tank. The range of current may vary from 200 ampere to 1400ampere as per the requirement.
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During this process the mixture of sulphuric acid and water is sent to cooler tank which is surrounded by fans which enables the mixture to become cool. This is done so that we can use mixture again and again and also it helps in making articles harder. This mixture is change after 6 months. Thus process is known as acidic process. After 3 hours, the articles are washed with pure water and then it is sent for ceiling process. In ceiling process, there is a tank in which there is a mixture of nikal acid and boric acid. Here in this tank unlike acidic process the articles are kept for 3 hours to make it harder. After 3 hours the articles are taken out from tank and washed with pure water. Finally it is sent for packing.
Non stick Coating:
There are mainly two types of nonstick coating: 1. Silicon and silicon Polyester formulation 2.Fluropolymerformulation Coating can be from one to three coating inthickness.
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In one coat system the binder, pigment, release agent and the carrier are combined in a single liquied that is applied to the article and cured at high temperature. Two coat systems have a primer applied followed by a second coat with a higher percentage of release agent. Three coat systems have a primer, midcoat with additional Fluropolymer to enhance the adhesion of primer to the mid coat and a midcoat to the top coat and a subsequent top coat between each of the multiple coatings, the article is run through a drying step before the final cure.
Application method: There are three main method used to apply nonstick coating. 1. Spraying 2. Curtain coating 3. Roller coating In our organization as per our convenience we are using spraying method to apply nonstick coating. After this coating the articles are left for drying then product is sent for packing.
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PLANT LAYOUT
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1.
Watchman?s cabin: We have 2 watchmen at the entrance and exit of the
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building.
2.
Finished goods Store room:
The store room is besides the parking plot so that worker?s doesn?t have to carry the materials for long.
3.
Official and refreshing area:
The office area i.e. the cabins of managing director, accountant and finance manager, marketing manager and sales executive and clerk, Waiting room, first aid room, and wash room are also there.
4.
Raw material storage room:
We have store room that has continence environment for storing material. As well as it can be moved easily from one place to other.
HUAMAN RESOURCE
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FEASIBILITY
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Human resource management is one of the most important elements of management process, which includes the process of recruiting, training, developing, motivating, and maintaining the human resource for organization. Organization requires the services of a large number of personnel. These personnel occupy the various positions created through the process of organizing. Each position of the organization makes certain specific contributions to achieve organizational objectives. So the person occupy the position should have sufficient ability to meet its requirements. “Effective Human Resource Management ensures that right people are available at right time and at right place.”
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Organisation chart
Organization chart is diagrammatical form which shows the major functions and their respective relationships, channels of formal authority and the relative authority of each personnel who is in charge of each respective function.
M.D
Production Marketing Finance
Manager
manager
Manager
Purchase manager
Sales executives
Accountant
supervisor
Clerk
Workers
Job Analysis:
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Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions and job specifications.
1. M.D
JOB- DESCRIPTION Job title Supervision Duties/Functions MD Various managers To monitor the work of Production managers, HR manager, Sales manager,Marketing manager, Finance manager. Help the MD in implementing the work in the organization. Screening the important information given by various managers. JOB- SPECIFICATION Qualification Experience Responsible for MBA in specified field 5 years or more as managing director Is responsible for implementing policies and converting plans intoaction.
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2. Marketing Manager:
JOB-DESCRIPTION Job title Reports to Supervision Duties/Function Marketing manager MD Sales Executive Have knowledge about marketing the product. Implement the market strategy. JOB-SPECIFICATION Qualification Experience Post graduation Management in Marketing
2 years or more as Marketing Manager in any company Should have good communication skill. Should have bargaining power.
Responsible for
Is responsible for making effective advertisement.
3. Production Manager :
JOB-DESCRIPTION
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Job title Reports to Supervision
Production Manager MD ProductionDepartment, Purchase manager
Duties/Functions
Good ability to manage the supplies and bargain with them. Should be able to purchase the raw material at best possible prices keeping in mind the quality of raw material purchased. Ability to manage the series of production.
JOB-SPECIFICATION Qualification Post graduate specialization management. with in MBA and production
Experience Responsible for
3 years or more as production manager in any company. any breakdown in production.
4. Finance manager:
JOB-DESCRIPTION Job title Reports to Finance Manager MD
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Supervision Duties/Functions
Accountant Raising and allocation of fund. Maintaining proper liquidity in day to day business. Decision regarding computer accounts.
JOB-SPECIFICATION Qualification Experience Post graduate in finance management 3 years or more He is number cruncher Responsible for Any financial dispute
5. Supervisor:
JOB- DESCRIPTION Job title Reports to Supervision Duties/Functions Supervisor Purchase manager Workers Guiding and training in handling the machineries to workers. Solve the technical problems related to machines in the factory. JOB SPECIFICATION Qualification Experience ITI in mechanic 2 years or more
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Responsible for
Any technical problem
6. Accountant:
JOB DESCRIPTION Job title Reports to Supervision Duties/Function JOB SPECIFICATION Qualification Experience Responsible for Accountant Finance manager Clerk Maintain the accounts
B.Com or M.Com with accoutancy 2 years or more Is responsible for making proper accounts
7. Sales Executive:
Job Description Job title Reports to Duties/Function Sales Executive Marketing Manager To carry out all operations for the implementation of advertising plans and promotional plans decided by marketing manager. Diploma in marketing 2 years To achieve the targets and responsible for any customer or dealer?s complaint
JOB SPECIFICATION Qualification Experience Responsible for
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about his services.
Wage policy:
Payment of salary to managers is monthly payment while to the daily workers it is on daily bases. At the time of festival the company gives bonus to the workers.
Safety measures:
The company provides medical treatment to the injured employees at the time of any accident will occur in the factory. The company also put fire extinguisher.
Holidays:
The company provides 4 holidays per month.
Incentive Programs:
Annual the company arranges “Award Function” for rewarding the best performance of the employees.
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Marketing feasibility
The marketer?s task is to devise marketing activity and assemble fully integrated marketing programs to create, communicate and deliver
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value for consumer. The marketing program consists of numerous decisions on value enhancing marketing activities to use. Marketing activities come in all forms. One traditional depiction of marketing activities.
4 P’S OF MARKETING:
Product
Price
Place
promotion
Product:
One of the most important requirement for marketing efficiency is proper product planning. In practical sense the scope of production and
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marketing of product are decided by the marketer based on its profitability and consumer reorganization. Product means “a goods, service, or idea that offers a bundle of tangible and intangible attributes to satisfy customer. Products which are marketed includes following: ? ? ? ? ? ? ? ? ? ? Physical goods Service Experience Events Persons Place Property Organization Information Idea
In short, product is anything that can be offered to market to satisfy want or need. “Product is a key element in the market offering.”
?Product variety:
Many products can be differentiated in variety or in physical structure or product by size, color, packing and brand name. Non stick cookware has variety of cook wares like handi, tawa, different pans, kadai, pressure cooker etc.
?Product quality:
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Another important element in product is quality. Buyers? expectations are to high quality of product and to meet the promised specification. Different types of non stickcookwares provide standard quality, durability to the customers.
?Product design:
Design has particular importance in marketing service when define the product. Product is one that is pleasant to look and easy to open. Non stick cook wares are available in round shape with glass lid or aluminum lid. Different types of pans are available with Bakelite handle.
?Product features:
Product can be offered with varying features that supplement the product as basic function. Features of Non stick cookware: ? ? ? ? Durability Affordability Safety Instant cooking
Product level:
In planning the market offer, the marketer needs to think through 5 levels of products. Each level adds more value to the customer?s satisfaction.
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Potential Level
Augmented Level
Expected Level
Basic Product
core benefit
1) Core Benefit:
It is fundamental service or benefit that customer is really buying. It basically includes the core ingredients of the project. Core benefit: To cook
2) Basic Product:
It is one of the alternatives to satisfy the core needs. It includes basic as well as functional attribute. Basic product: Non stick cookware
3) Expected Product:
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It is set of attributes and conditions buyers normally expect when they purchase or take the service.
Here, consumer expects following benefits: ? ? ? ? Durability Quality Safety Affordability
4) Augmented Product:
It consists of those services that meet the consumer?s desires beyond the expectations. ? Instant cooking ? Less consumption of fuel
5) Potential Level:
It is which encompasses all possible augmentations and transformations the service might undergo in future. ? Electric non stick cookware ? Automatic non stick cookware
Product mix:
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A product mix is the set of all products and items that a particular seller offers for sale. A company?s product mix has a certain width, length, depth, and consistency. 1. Product line: It is qualitative in nature and the product line of our company is Pan, Tawa, Handi, Casserole, Kadai and Pressure cooker. 2. Product width: Product width of a product mix refers to how many different product lines the company has or carries. It is quantitative in nature. Product width: 6 3. Product length: Product length of product mix refers to the total number of items in product mix. Product length: 9 4.Product depth: Product depth of product mix refers to how many variants are offered of each product in the product line.
The product depth of the non stick cookware is as under: No. 1. 2. 3. 4. 5. 6. Items Milk Pan Fry Pan Tawa1 Tawa 2 Casserole 1 Casserole 2 Size 102mm 205mm 26cm. 22cm. 2lit. 4lit.
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7. 8. 9. 10. 11. ? ? ? ? ? ?
Kadai Pressure cooker 1 Pressure cooker2 Pressure cooker3 Handi
1.8lit. 2lit. 1.5lit. 3.5lit. 3mm.
Pan-(1*1)+(1*1)=2 Tawa-(1*1)+(1*1)=2 Handi-(1*1)=1 Casserole- (1*1)+(1*1)=2 Kadai-(1*1)=1 Pressure cooker- (1*1)+(1*1)+(1*1)=3
5. Product consistency: Consistency of product refers to how close we related the various product lines are in end use, production requirements, distribution channel or some other way. Product consistency is high, higher, medium, and low. The product consistency of non stick-cookware is high because all non stick products are closely related.
Price:
Price is essential for both the customers and service provider. The price should be determined such that the service provider can get the maximum profit and customer can easily afford it. Varied pricing could occur according to geography, timeframe or value.
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The pricing strategy should be such that it can attract maximum no. of customers. We have defined the fee structure based on market survey conducted by us and the analysis of fee structure of the competitors. We plan to provide products on wholesale basis and through internet and teleshopping .Half of the amount of order would be collected on order basis and the rest along with the delivery and for the orders through telephone and internet the cash would be collected on delivery basis.
No. 1. 2. 3. s4. 5. 6. 7. 8. 9. 10. 11.
Items Milk Pan Fry Pan Tawa Tawa Casserole Casserole Kadai Pressure cooker Pressure cooker Pressure cooker Handi
Size 102mm 205mm 26cm. 22cm. 2lit. 4lit. 1.8lit. 2lit. 1.5lit. 3.5lit. 3mm.
Amount(Rs.) 510 700 615 400 665 300 750 1430 1250 1650 930
? Discount and allowance:
At the time of buying the product from the market, whatever lower price is paid by the buyer thanthe list price is called discount. Our company provides discount at the time of festivals and marriage season.
Credit terms:
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Credit terms include all criteria such as interest on late payment, nature of payment, bad debts, discount, delivery of goods etc. Our company provides credit terms of 3 months to our loyal wholesaler and retailers.
PLACE:
Place is not where your business is located but where your customers are. Place is where one can expect to find ones customers and consequently where the sale is realized. In other words “Place means the premise where we can actively make the different products and services available to the target customers. Thus, the seller needs to select appropriate place in such a way that the place fulfills the criteria of easy access to the perspective and the present customers.
Name Location
KING nonstick cookware ltd. Plot no.49 GVMM Odhav Industrial Area, Ahmedabad.
? Distribution channel:
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Distribution means making available right product at the right place, in right quantity, in right time, in right condition by the most effective mode. An efficient distribution can help in establishing loyalty among consumers. so consumers will not shift to substitute hence. distribution is one of the very important aspects of marketing. Our company?s distribution channel is as under:
? Transportation:
The mode of transportation depends on need of consumers, on time delivery performance, type of goods etc. Our company transports goods by roadways.
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PROMOTION
Promotion is the term taken from the Latin word “promo ere” which means moving from one end to another. In marketing promotion means all tools through which the marketer communicates its products to the customers.
? Objectives of promotion
? ? ? ? ? Providing knowledge about product Build company image Telling the customer about the new product Maintaining the product awareness Describing the available services provided by the company
? ? ? ? ? ?
PROMOTION TOOLS:
Advertising Sales promotion Public relation Personal selling Direct marketing
Among these promotion tools our company uses advertising and sales promotion.
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? Advertising:
5M’s of advertising
1. Mission: ? To create customer awareness. ? To create a favorable company image. ? To encourage immediate sales. 2. Media: ? ? ? ? Local News paper Local radio station Catalogue Hoardings
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8. Money:
Media Local news paper Hoardings Local radio station Catalogue 4. Message: ? Message generation ? Message evaluation ? Message execution The punch line of our company is “EASY TO COOK,EASY TO WASH” Total budget(Rs.) Rs.700000 Rs.55000 Rs.350000 Rs.95000
5. Measurement: The demand for our product has been increased by 5% to 10% over the 1st 5 years and advertising is one of the reasons for that.
?Sales promotion
Sales promotion is define as aggression of all such activities which assist selling, advertising and attain the organizational objectives. The purposes of sales promotion are as follows: ? To attract new customers. ? To reward loyal customers.
? To increase the re purchase rate of occasional users. ? Sales promotion turn brand switches who are looking for price, good value or premium into loyal users. ? Techniques of sales promotion are as follows: 1 Price off 2 Free samples 3 Coupons 4 Cash refund 5 Price packs 6 Premium packs 7 Frequentlyprogrammes 8 Contest 9 Patronage 10 Free trial product Our company uses only price off for sales promotion. Sales promotion includes consumer promotion as well as dealer?s promotion. (1) Consumer promotion:
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Our company will initially introduce consumer promotion tools like special advertising, allowances, discount etc. (2) Dealer?s promotion: To encourage the dealers to increase the sale, we have decided to give them commission on our sale.
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MARKET RESEARCH
“Research
does not guarantee success.”
Research can?t be a substitute for first hand insight gained by engaging with the consumer. Neither can the research be a substitute for a common sense. “The of an idea is often mid-wifed by market research” Change is inevitable phenomenon that affects 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 the rhythm of change, one has to make deep market research.
? 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 Ahmadabad Management Association (AMA) the systematic gathering, recording and analyzing of data about problem relating to the market of the market of the goods and services.
Activities involved in Market Research:
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? Market potential and market share studies. ? Assessing the customer satisfaction and their purchasing behavior. ? Studying of pricing, product, distribution and promotion activities. ? Parts of Market Research: Market research is divided into two parts: (1) (2) Problem Opportunity ? Problem: Market research is done under this head if the organization is facing any problem like declining in sales, goods are returned by customers, advertisement failure and the like.
? Opportunity:
Here, Market research is done for entering into the new market. We are opting the opportunity as we are entering into the new market of non stick cookware.
? Process of Market Research:
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Every action has a cause and it?s true with our research. In the era of globalization must have a “Mantra” of success which is to learn from past, improve the present and to foresight the failure.
Effective Market Research System involves the five steps as under:
(1)
Define the problem and research objective
Market research is undertaken to achieve particular objectives. The objective should be decided first of all as to what the research should be for acquiring the necessary information. Some research can be descriptive or casual. ? Problem statement:
Generally the utensils of stainless steel and aluminium are burned because it requires more time for cooking and there is more consumption of fuel. They are also more difficult to wash. ? Objectives: ? To find out number of wholesalers currently buying the Nonstick cookware to sale the retailers. ? To know their problem with the existing utensils and try to achieve it. ? To know their expectations over the product which they are provided.
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(2)
Develop the research plan:
The second step of market research is to develop a step by step plan regarding decision factors like research approach, source of data, sampling plan, and research instrument and contact method.
?
Source of data:
The data sources can be primary or secondary. We have used both data sources. ? Primary data:
Primary data is the raw data that we can get from producers, consumers, traders etc. The primary sources are costly but reliable. We have used questionnaire method for gathering the information from the potential market. We have formulated a questionnaire consisting questions regarding the preference of our product. A questionnaire is a proper framework of questions which is design for primary data. We have gatherer information about wholesalers, retailers and customers and the market in Ahmedabad. ? Secondary data:
Secondary data is a historical data structure of variables previously collected and assembled for some research problem or opportunity situation other than the current situation. This kind of data structures can be found at libraries, universities, internet or inside the company.
Easy to cook, easy to wash
Secondary data is also available in the media like News papers and magazines. It can also be purchased from a firm specializing in proving secondary data. ? Research approach:
The following approach can be used for gathering the information: 1. 2. 3. 4. 5. Exploratory approach Focus group approach Descriptive approach Behavioral approach Experimental approach
We have used descriptive research approach in our project.
Research instrument: The following instrument can be used for market research.
1. 2. 3. 4.
Questionnaires Psychological tools Mechanical devices Qualitative measures
The major instrument that we have used in our project is questionnaire. Sampling plan:
Easy to cook, easy to wash
The marketing research must design sampling plan which consists of 3 components such as: ? Sampling Units: Dealers & consumers ? Sampling size: Dealers:50 respondents Consumers: 250 respondents ? Sampling Procedures: Convenient sampling method Contact method: There are various ways such as mail, phone, and direct contact with questionnaire. We have used third one in our project.
ANALYSIS
CONSUMERS’ SURVEY ANALYSIS:
CONSUMER?S QUESTIONNAIRE
1. Name:__________________________________________ 2. Area:___________________________________________ 3. Occupation: ?Business ?House wife ?Professional ?Employed
?Others________________
Easy to cook, easy to wash
4. Average monthly income: ?Below 15000 ?30000-4500 ?15000-30000 ?45000 & up
5. Do you use any non-stick cookware? ?Yes ?No
If yes then go to section A If no then go to section B
Section-A 6. Which of the brand of non-stick cookware are you using? ?Prestige ?Tuffware ?Jaipan ?Tefal ?Nirali ?Nirlep ?Crystal ?Nirlon
?Others________________
7. Which of the product of non-stick cookware are you using? ?Pan ?Casserole ?Tawa ?Milk pan ?Handi ?Kadai ?Stock pot ?Pressure cooker
Easy to cook, easy to wash
8. Which Factors do you consider while buying non-stick cookware? ?Price ?Brand ?Size ?Offer
9. From where do you purchase? ?Supermarket ?Nearby stores
10.How did you come to know about the particular brand of non-stick cookware? ?Neighbour ?Relatives ?Advertisement ?Others________________
11.Are you satisfied with your non-stick cookware? ?Yes ?No
If you are not satisfied then specify the reason for dissatisfaction Specify___________________________________________
12.What are the extra benefit you are looking for in a non-stick cookware? Specify___________________________________________
13.If we launch a new non-stick cookware considering your requirements would you like to purchase it?
?Yes
Easy to cook, easy to wash
?No
Section-B 14.Reason for not having non-stick cookware: ?Price ?Health factor ?Awareness ?Other________________
15.Are you planning for future ? Specify___________________________________________
Easy to cook, easy to wash
Graphical presentation:
OCCUPATION:
OCCUPATION business housewife professionals employed Others NO. OF RESPONDENTS 31 87 58 36 38 250
occupation
90 80 70 60 50 40 30 20 10 0 business housewife professionals employed others 31 58 36 38 87 occupation
INTERPRETATION:-
Easy to cook, easy to wash
From the above graph we can interpret that most of the users comprises of housewives followed by others like hotels, restaurants etc. the least users are business people.
INCOME:
income below 15000 15000-30000 30000-45000 45000 & above no.of respondents 25 43 55 82 205
250
200
150 income 100 no.of respondents
50
0 1 2 3 4 5
INTERPRETATION: From this chart we can interpret that most of the consumers we surveyed are belonged to the category of above Rs. 45,000 monthly income.
USERS OF THE NON-STICK COOKWARE:-
Easy to cook, easy to wash
Column1 yes no Column2 205 45 250
Users of non-stick cookware
no yes no yes
INTERPRETATION:The above graph conveys that most of the surveyed people are using non-stick cookware. The remaining people are not using because of the unawareness of the benefits of the same and also due to the health consideration.
BRAND PREFERENCE:
Column1 Prestige Column2 49
Easy to cook, easy to wash Tuffware Jaipan Tefel Nirali Nirlep Crystal Nirlon Others 20 30 22 17 29 10 18 10 205
Brand of non-stick cookware
10 18 10 49 prestige tuffware jaipan tefel 29 20 17 22 30 nirali nirlep crystal nirlon others
INTERPRETATION:From the above graph we can interpret that most of the people prefer prestige brand followed by Jaipan and Nirlep respectively.
Easy to cook, easy to wash
PRODUCT PREFERNCE:Column1 Pan Tawa Milk pan Handi Casserole Kadai Stock pot
Pressure cooker
Column2 26 32 39 15 12 18 8
55 205
Products of non-stick cookware are consumers using
pressure cooker 27% pan 13% tawa 15% stock pot 4% kadai 9% casserole handi 6% 7% pan tawa milk pan handi milk pan 19% casserole kadai stock pot
INTERPRETATION:-
In this graph we can infer that most of the people are using pressure cooker and the product which is least used by the people is stock-pot and casserole.
Easy to cook, easy to wash
Factor consider while purchase
Column1 Price Size Brand Offer Column2 55 34 76 40 205
Easy to cook, easy to wash
Factors consider while purchase
offer 19%
price 27%
price size
brand 37%
size 17%
bran d
INTERPRETATION:-
In this graph we can say that the major factors which are considered by the people while buying are brand and price.
PURCHASE PLACE:Column1 Supermarket Nearby stores Column2 140 65 205
Easy to cook, easy to wash
Purchase place
nearby stores 32% supermarket 68%
supermarket nearby stores
INTERPRETATION:-
With the help of this graph we can interpret that most of the people prefer to buy from the supermarkets only.
SOURCE OF INFORMATION:Column1 Neighbour Relatives Advertisement Others Column2 54 45 90 16 205
Easy to cook, easy to wash
From where you know about particular brand?
90 80 70 60 50 40 30 20 10 0
90 54 45 16 From where u know abt particular brand
INTERPRETATION:-
The major source of information for the people in this case is advertisement through various sources so we have also preferred advertisement as the major tool of marketing.
Easy to cook, easy to wash
SATISFACTION LEVEL:-
Column1 Yes No
Column2 138 67 205
Satisfy
no 33% yes no yes 67%
INTERPRETATION:-
Here in this graph we can infer that around 67% of the users are satisfied with the functions and result of the non-stick cook wares. The reason for non-satisfaction is its poor coating system, and to overcome this drawback our company will be doing double coating of each utensil.
Easy to cook, easy to wash
Preference to shift the brand:Column1 Yes No Column2 133 72 205
New launched brand purchase
no 35% yes 65%
yes no
INTERPRETATION:-
From this graph we can interpret that more than half of the users are ready to shift to the other brand due to some reasons like high prices, durability, inferior quality of coating and other extra features.
Reasons of non usage nonstick cookware
Easy to cook, easy to wash Column1 Price Awareness Health factor Others Column2 15 10 18 2 45
18 16 14 12 10 8 6 4 2 0 price awareness health factor others Series1
INTERPRETATION:
From the above chart, we can say that most of the people not using nonstick cookware because of the health factor followed by the price and awareness.
Preference for using in future
Column1
Column2
Yes No
Easy to cook, easy to wash 35 10 45
Preference for using in future
no 22% yes 78%
yes no
DEALERS’S QUESTIONNAIRE
NOTE 1. The information obtained will be kept confidential and will be used for research purpose only. 2. Please ? marks the boxes for responses leave the boxes blank for „NO? response. PERSONAL DETAILS: Name: _____________________________________________
Easy to cook, easy to wash
Area: _____________________________________________ Section-A 1. Which company?s dealership you have? [ [ [ [ [ ] Prestige ] Tuffware ] Jaipan ] Tefal [ [ [ [ ] Nirali ] Nirlep ] Crystal ] Nirlon
] Others________________
2. Which brands customers prefer the most? [ ] Prestige [ ] Nirali [ [ [ [ ] Tuffware ] Jaipan ] Tefal [ [ [ ] Nirlep ] Crystal ] Nirlon
] Others________________
3. Which brands do you sell more? [ [ [ [ [ ] Prestige ] Tuffware ] Jaipan ] Tefal [ [ [ [ ] Nirali ] Nirlep ] Crystal ] Nirlon
] Others________________
4. From where do you purchase?
Easy to cook, easy to wash
[ [
] From distributor ] From Company
5. How much credit period do you receive from the person you purchase? [ [ [ [ ] 0-2 months ] 2-4 months ] 4-6 months ] more than 6 months
6. On what basis do you sell your products? [ ] In bulk [ [ ] Piece to piece ] Both
7. On what terms you sell your products? [ ] Cash [ [ ] Credit ] Both
If cash, do you give any cash discount? ________ % If on credit, give the time duration for payment___________
8. What are your sales for last year? [ ] Pan
Easy to cook, easy to wash
[ [ [ [ [ [ [
] Casserole ] Tawa ] Kadai ] Milk pan ] Stock pot ] Handi ] Pressure cooker
9. Factor taken into considering by customer while purchasing. [Rank in order of preference] [ [ [ [ [ ] Price ] Brand ] Quality ] Availability ] Other (Specify) ______________
10. Does manufacturer help in marketing the product? [ ] Yes [ ] No
11. Stock maintained by you? Items Pan Casserole Tawa Units __________ __________ __________
Easy to cook, easy to wash
Kadai __________ Milk pan Stock pot Handi __________ __________ __________ __________
Pressure cooker
12. Do you provide any after sales services? [ ] Yes [ ] No
13. Which media you use while marketing the product? [ [ [ ] Internet ] Trade magazines ] Others_______________
14. What is the rate of margin which you expect from a new company? Specify ____________________________________________
15. Any suggestion Specify ____________________________________________
Easy to cook, easy to wash
Graphical representation:
COMPANY’S DEALERSHIP:
Name of the brands Prestige Tuffware Jaipan Tefel Nirali Nirlep crystal Nirlon others total No,of dealers 12 4 5 5 6 7 6 5 0 50
Easy to cook, easy to wash
Brand dealership
15 No of dealers 10 5 0 Series1
Name of barnds
INTERPRETATION:
From the above graph we can infer that most of the dealers are dealing with prestige brand and then followed by nirlep, nirlon and nirali respectively.
Brands sold more:
Easy to cook, easy to wash
Name of the brands prestige tuffware jaipan tefel Nirali Nirlep Crystal Nirlon Other Total No. of Dealers 21 10 8 9 12 10 14 12 0 96
Brand sold more
25 21 20 15 10 10 5 0 0 8 9 14 12 10 No. of Dealers 12
INTERPRETATION:
From this chart we can interpret that prestige is the most preferred brand as compared to others in terms of sales.
Easy to cook, easy to wash
PURCHASE PLACE:
particulars Distributor Company Other Total No of dealers 35 15 0 50
Purchase Place
40 35 30 25 20 15 10 5 0 Distributor Company Other 0 15 no.of dealers 35
INTERPRETATION: From the above chart we can infer that most of the dealers we surveyed
Easy to cook, easy to wash
are preferred to buy from the distributors as per their convenience.
CREDIT PERIOD:
time duration 2-4 4-6 >6 Total dealers 25 19 6 50
Credit period
30 25 20 dealers 15 10 5 0 2-4 4-6 time duration >6
INTERPRETATION:
Here in this graph we can interpret that most of the dealers get credit period of 2-4 months.
Easy to cook, easy to wash
BASIS OF PURCHASE:
Purchase Quantity Bulk Piece to Piece Both Total no of dealers 50 0 0 50
No. of dealers
Bulk
Piece to Piece
Both
INTERPRETATION: Here from this graph we can interpret that most of the dealers are purchase in bulk. TERM OF SALES:
Easy to cook, easy to wash
Term of Sales Cash Credit Both Total No of dealers 25 9 16 50
No of dealers
30 25 20 15 10 5 0 Cash Credit Both No of dealers
INTERPRETATION: From this chart we can infer that most of the dealers are practicing cash payment as the terms of payments.
SALE OF LAST YEAR
Items Quantity sold last year
Easy to cook, easy to wash
Pan Casserole Tawa Kadai Milk Pan Stock Pot Handi Pressure Cooker Total 30 12 37 26 24 5 29 43 206
Quantity sold last year
50 45 40 35 30 25 20 15 10 5 0 43 37 30 12 5 Quantity sold last year 26 24 29
INTERPRETATION: In this graph we can interpret that pressure cooker followed by tawa are having maximum sales during the last year where as the stock pot is having least sales.
Easy to cook, easy to wash
MANUFACTURER HELP IN MARKETING
Particular Yes No Total
Number 16 34 50
Number
Yes No
Easy to cook, easy to wash
INTERPRETATION: With the help of this data we can interpret that more than half of the manufacturers do not help in marketing of the product. Provide service after sales:
Particular Yes No Total Number 43 7 50
Number
Yes No
INTERPRETATION:
Easy to cook, easy to wash
In this graph we can interpret that around 86% of the dealers are providing after sale services to the customers, retailers, wholesalers, etc.
MEDIA FOR MARKETING:
Media Internet Trade Magazines Others Total Number 19 35 11 65
media
Internet Trade Magazines Others
INTERPRETATION:
Easy to cook, easy to wash
The major media for marketing used by them is the trade magazines followed by internet
DEALER’S CONSUMPTION (PER YEAR)
Name of Company Pan Casserole Tawa Kadai Milk Pan Stock Pot Handi Pressure Cooker Total Quantity 3100 1800 5600 2900 2500 600 3800 5000 25300
Quantity
6000 5000 4000 3000 2000 1000 0 Quantity
Easy to cook, easy to wash
INTERPRETATION: In this graph we can interpret that the tawa is having more annual demand as compared to the other products.
Finance Feasibility
Easy to cook, easy to wash
ASSUMPTIONS
? There are 360 working days in a year. ? Manufacturing is done evenly in all the months throughout the year. ? Estimated production will be done and sales of them will be realized. ? Fixed Assets are valued at historical cost less depth as per income tax act, 1961 on WDV basis.
? For calculating working capital required debtors are valued at selling price. ? Profit is distributed among shareholders as per availability of cash. ? Out of total sales 30% are credit sales. ? Out of total purchases 30% are credit purchases. ? Income tax is due and paid regularly at 35% of PBT. ? 30% discount is provided to distributor on MRP. ? Net sales are exclusive of 5% excise duty 4% VAT. ? We have taken 11% secured loan from SBI. ? Repayment of loan is started from 3rd year. ? We have calculated raw material consumption for 1 month because it is not feasible to bifurcate them for the different products in different period. ? We have taken an insurance of Rs. 2500000 against machineries. ? Utilized production capacity is 70% of total capacity and we have utilized 90% capacity. ? We are starting variety of different products at the beginning of the 3rd year.
Easy to cook, easy to wash
Easy to cook, easy to wash
Cost of Project
Particulars Amount(Rs.) Land 22740000 Building 10000000 Machinery 3720000 Furniture 174800 Computer & 180000 other equipment Preliminary 700000 Expenses Working capital 1000000 Total 38514800
Means of Finance
Particulars share capital(2219480shares of Rs.10 each fully paid 11% loan from SBI Total Amount(Rs.) 22194800 16320000 38514800
Cost of land
Particulars Area(square feet) Rs per square fee Total
Easy to cook, easy to wash
Basic cost of land Document charges other charges Total
30000
750
22500000 200000 40000 22740000
Particulars Factory Building Office Building Total
COST OF CONSTRUCTION Area in square feet Rs per Total square feet 20000 125 8000 937.5
2500000 7500000 10000000
Cost of machinery
Particulars Pressing machine Finishing machine Polishing machine Spot welding machine Anodized plant Stamp machine Spray machine Total No. of machine 1 2 2 2 1 1 4 cost(Rs.) total cost 950000 950000 50000 100000 35000 70000 80000 160000 2200000 2200000 100000 100000 35000 140000 3720000
Cost of Furniture
Particulars Sofa set Revolving chair Comfort chair Cabin table Cupboard Dustbin A.c. Lights Unit 2 8 15 9 2 8 1 30 Unit Total price Rs. 25000 50000 1500 12000 1000 15000 2500 22500 4000 8000 100 800 25000 25000 250 7500
Easy to cook, easy to wash
Ceiling fans Exhaust fans Computer Telephone Printer Fire-extinguish equipment Total
20 4 6 5 1 2
1400 28000 1500 6000 25000 150000 3000 15000 5000 5000 5000 10000 354800
Preliminary expenses
Particulars Advertisement expenses Market survey expenses Other expenses: Water supply Electricity connection Water purifier Documentation charges Total Rs. 500000 25000 100000 20000 5000 50000 700000
Factory overheads
Years Power & Fuel Indirect Wages Depreciation: Building Furniture Machinery Repair & Maintenance Bonus Insurance Total 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 1200000 1248000 1309000 1325500 1367600 540000 574800 606000 623400 639000 500000 48000 558000 200000 450000 18853 474300 220000 405000 15083 422655 235000 208000 500000 3700738 364500 12066 359257 320000 274000 500000 3778723 328050 9653 305368 342000 318400 500000 3810071
200000 192000 500000 500000 3746000 3677953
Administration overhead
Easy to cook, easy to wash
Years Electricity Salary Bonus Depreciation Furniture Building Office Expenses Total
2011-2012 201220132010420152013 2014 2015 2016 120000 122000 131000 128500 130400 1722000 1891200 2020800 2128800 2210400 200000 192000 208000 274000 318400 24000 500000 100000 2666000 37707 450000 80000 2772907 30165 405000 75850 2870815 24132 364500 89200 3009132 19306 328050 98750 3105306
Selling and distribution overheads
Particulars Sales Executive Salary Bonus Advertisement Exp. Rent of Vehicles Packing Charges Other Charges Total 20112012201320142012 2013 2014 2015 240000 264000 282000 297600 100000 96000 104000 137000 1200000 1037800 953500 1281250 1000000 918000 928000 982000 150000 174200 176500 186750 150000 170000 172000 195000 2840000 2660000 2616000 3079600 20152016 312000 159200 1015500 983000 184500 187000 2841200
Easy to cook, easy to wash
Calculation of Depreciation
Particular 20112012 2012-2013 20132014 20142015 2395045 0 2395045 359257 2035788 20152016 2035788 0 2035788 305368 1730420 MACHINERIES 3720000 3162000 2687700 0 3720000 558000 3162000 0 130000 3162000 2817700 474300 422655 2687700 2395045
Opening balance Additional Less: Depreciation Closing balance Opening balance Less: Depreciation Closing balance
FURNITURE 174800 139300 35500 139300 27860 111440
111440 22288 89152
89152 17830 71322
71322 14264 57058
Opening balance Less: Depreciation Closing balance Opening balance Less: Depreciation Closing balance
COMPUTERS AND OTHER EQUIPMENTS 180000 143500 114800 36500 143500 28700 114800 22960 91840
91840 18368 73472
73472 14694 58778
BUILDING 10000000 9000000 1000000 9000000 900000 8100000
8100000 7290000 810000 729000
6561000 656100 5904900
7290000 6561000
Salary Structure
Designation No. of 20112012201320142015-
Easy to cook, easy to wash
2012
2013
2014
2015
2016 2433600 432000 234000 196800 312000 378000 378000 378000 540000 105600 69000 138000 5595000
workers Workers 40 2184000 2308800 2340000 2371200 Supervisor 4 360000 384000 408000 420000 Accountant 1 180000 198000 210000 222000 Clerk 1 144000 159600 172800 184800 Sales executive 1 240000 264000 282000 297600 Marketing 1 300000 330000 348000 366000 Manager Production 1 300000 330000 348000 366000 Manager Finance 1 300000 330000 348000 366000 Manager M.D. 1 420000 456000 498000 522000 Receptionist 1 78000 87600 96000 102000 Peon 1 60000 63600 66000 67800 Watchman 2 120000 127200 132000 135600 Total 4686000 5038800 5248800 5421000
Repayment of loan
Year 1 2 3 4 5 Amt. Interest Principal Balance Total amt. Payable Paid Paid 16320000 1793000 0 16320000 1793000 16320000 1793000 0 16320000 1793000 16320000 1573000 2000000 14320000 3573000 14320000 1353000 2000000 12320000 3353000 12320000 1133000 2000000 10320000 3133000
Consumption of Raw Material
Particulars Aluminum circle Canbay powder Price(Rs.) 160/k. g. 150/k. g. Consumption(monthly) 3800k.g 30k.g.
Easy to cook, easy to wash
Choona powder Screw Whistle Rubber gasket Handle Safety valve Packing material Kerosene Oil Binder Pigment Nikal Acid Sulphuric Acid Boric Acid Silicon Fluropolymer Perfluropolymer
25/k. g. 200/k. g. 65/unit 130/unit 35/unit 35/unit 10/unit 20/ lit. 70/lit. 350/k.g 200/k.g 850/lit 1100/lit 900/lit 600/k.g 500/k.g 1000/lit.
50k.g. 25k.g. 1000units 1000units 4500units 1000units 4600units 50ltr. 10ltr. 10k.g 10k.g 12ltr. 15ltr. 13ltr. 15k.g 15k.g 18ltr.
Cost sheet
Year Particular Raw Material Direct Wages Direct Expenses Prime Cost Factory overheads Factory cost Administration overheads 20112012 Amt. 20122013 Amt. 20132014 Amt. 20142015 Amt. 20152016 Amt.
13584000 14164700 15102000 15552000 16019000 2184000 2308800 2340000 2371200 2433600 450000 470000 410000 475000 395200 16218000 16943500 17852000 18398200 18847800 3746000 3677953 3700738 3778723 3810070
19964000 20621453 21552738 22176923 22657870 2666000 2772907 2870815 3009132 3105306
Easy to cook, easy to wash
Cost of production Add: Opening Stock of Finish Goods Less: Closing stock of Finish Goods Cost of goods sold Selling & Distribution overheads Cost of sales Profit sales
22630000 23394360 24423553 25186055 25763176 0 2775816 2039705 3604680 3604680 4993943 4993943 4341480 4341480 4081814
19854184 21829385 23034290 25838518 26022842 2840000 2660000 2616000 3079600 2841200
22694184 24489385 25650290 28918118 28864042 5689316 7287115 6610510 7657132 7549498
28383500 31776500 32260800 36575250 36413540
Profit & loss account
Particulars Sales Add:cl.stock raw material Finished goods other income Total income Less: Opening stock raw material Finished Goods Purchase 2011-2012 28383500 2264700 2039705 0 32687905 0 0 15848700 2012-2013 2013-2014 201420152015 2016 31776500 32260800 36575250 36413540 2300000 3604680 0 37681180 2264700 2039705 14200000 1948000 2124000 2239000 4993943 4341480 4081814 28000 28000 28000 39230743 43068730 42762354 2300000 3604680 14750000 1948000 4993943 1572830 2124000 4341480 1613430
Easy to cook, easy to wash
Carriage Inward direct wages factory overhead Gross Profit Less: Admin.overhead selling o/h Financial Charges(interest) Non cash expenses w/f N.P/PBT Less: Tax provision@35% PAT Less:G.R.@5% Profit Distributed Transferred to B/S
200000 2184000 3746000 10709205 2666000 2840000 1793000 140000 3270205 1144572 2125633 106282 637690 1381661
210000 2308800 2677953 12980022 2772907 2660000 1793000 140000 5614115 1964940 3649175 182459 3101799 364917
190000 230000 203700 2340000 2371200 2433600 3700738 3778723 3810071 12345325 14018864 13715503 2870815 3009132 3105306 2616000 3079600 2841200 1573000 1353000 1133000 140000 5145510 1800929 3344581 167229 1672291 1505061 140000 6437132 2252996 4184136 209207 3765722 209207 140000 6495997 2273599 4222398 211120 3589038 422240
Balance sheet
Particulars 20112012 20122013 20132014 20142015 20152016
SOURCE OF FUNDS Shareholder’s funds share capital reserve & surplus General reserve profit & loss a/c Borrowed funds secured loans
22194800 22194800 22194800 22194800 22194800 106282 288741 455970 665177 876297 1381661 1746578 3251639 3460840 3883082
16320000 16320000 14320000 12320000 10320000
Easy to cook, easy to wash
Total Rs. APPLICATION OF FUNDS Fixed assets Gross block less: depreciation Net block Investments 8% Govt. security A. Current assets Raw material Finish goods Debtors Cash & bank B. current liabilities o/s expenses Selling& distribution. Wages & salary Creditors for raw material Net working capital(A-B) Misc. Expenditure Preliminary expenses Total
40002743 40550119 40222409 38640817 37274179
36814800 35184800 33883940 32606037 31481582 1630000 1430860 1277903 1124455 990427 35184800 33753940 32606037 31481582 30491155
0
0
350000
350000
350000
2264700 2039705 800000 623538 5727943
2300000 3604680 950000 1381499 8236179
1948000 4993943 1020000 727329 8689272
2124000 4341480 1070000 882855 8418335
2239000 4081814 1130500 893258 8344572
300000 420000 750000 1470000 4257943
370000 650000 840000 1860000 6376179
420000 417900 865000 1702900 6986372
395000 428900 925200 1749100 6669235
424500 440050 1047000 1911550 6433022
560000
420000
280000
140000
0
40002743 40550119 40222409 38640817 37274179
Working capital statement
Particulars 1 2 3 4 5
Easy to cook, easy to wash
A. Current assets Raw material Finish goods Debtors Cash & bank B. Current liabilities o/s expenses Selling & distribution. Wages & salary Creditors for raw material Net working capital(A-B)
2264700 2039705 800000 623538 5727943
2300000 3604680 950000 1381499 8236179
1948000 4993943 1020000 727329 8689272
2124000 4341480 1070000 882855 8418335
2239000 4081814 1130500 893258 8344572
300000 420000 750000 1470000 4257943
370000 650000 840000 1860000 6376179
420000 417900 865000 1702900 6986372
395000 428900 925200 1749100 6669235
424500 440050 1047000 1911550 6433022
Easy to cook, easy to wash
Cash flow statement
Particulars (A)Cash flow from operating activity Opening profit from p & l a/c (-)Closing balance of P/L a/c Add: All non cash & non operating items Depreciation Preliminary expense w/f Prov. for tax Profit distributed & dividend Transfer to General Reserve Less: All non operating incomes Interest received. Profit from operating activity Change in w. c. Cash from operation Less: Income tax paid Net cash flow (B)Cash flow from investing activity Add: Cash inflow Interest received Less: CASH Outflow Purchase of Fixed assets Investment Preliminary 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
1381661 -
1746578 1381661
3251639 1746578
3460840 3251639
3883082 3460846
1630000 140000 1144572 637690 106282
1430860 140000 1964940 3101799 182459
1277903 140000 1800929 1672291 167229
1124455 140000 2252996 3765722 209207
990427 140000 2273599 3589038 211120
0 5040205 (3634405) 1405800 (1144572) 261228
0 7184975
-28000 -28000 -28000 6535413 7673581 7598420 472663 8146244 (2252996) 5893248 246616 7845036 (2273599) 5571441
(1360275) (1264363) 5824700 5271050 (1964940) (1800929) 3859760 3470121
0
0
28000
28000
28000
(36814800) 0 700000 0
(130000) (350000)
-
-
Easy to cook, easy to wash
Expenses Net cash flow from 37514800 investing activity (C )cash Flow from financing Activity Add: Cash inflow Issue of share Loan Less: Cash outflow Repayment of loan Dividend paid Net Cash flow from Financing Activity
-
(452000)
28000
28000
22194800 16320000 (637690) 37877110
-
(2000000)
(2000000) (3765722) (5765722)
(2000000) (3589038) (5589038)
(3101799) (1972291) (3101799) (3692291)
Net cash 623538 flow(A+B+C) Add: Opening cash 0 Balance Closing cash 623538 Balance
757961 623538 1381499
(654170) 1381499 727329
155526 727329 882855
10403 882855 893258
Easy to cook, easy to wash
RATIO ANALYSIS
NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. RATIOS Current ratio Quick ratio Gross profit ratio Operating profit ratio Net profit ratio Return on capital employed Return on share holders? fund Return on total asset Interest coverage ratio Debt-service coverage ratio Debt- Equity ratio Proprietary ratio Fixed asset turnover ratio Total assets turnover ratio Capital turnover ratio Working capital turnover ratio Stock turnover ratio Debtors? ratio Creditors? ratio FORMULA Current asset/ Current liability Current asset-stock/Current liability-B.O.D GP/Sales*100 Operating profit/Sales*100 NP/Sales*100 EBIT/Capital employed*100 PAT/Shareholders? fund NP/Total assets*100 EBIT/Interest PAT+Interest+Non cash exp./Interest+ Installment Debt/Equity Proprietary fund/total assets*100 Sales/ Fixed assets Sales/Total asses Sales/Capital employed Sales/W.C. COGS/Avg. stock Debtors+ B/R/Credit sales*360 days Creditors+ B/P/Credit purchase*360days
RATIOS
Liquidity ratio:-
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Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Current ratio 3.90:1 4.43:1 5.10:1 4.81:1 4.37:1
Quick ratio 0.97:1 1.25:1 1.03:1 1.12:1 1.1:1
Profitability ratio:? G.P. ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 37.73 40 38 38.32 37.66
? Operating Profit
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 17.84 23.31 20.83 21.30 20.95
? Net Profit Ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 Ratio (%) 7.49 11.48 10.37 11.44
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2015-2016
11.80
? Return on capital employed
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 12.84 18.46 16.75 20.16 20.39
? Return on share holder’s fund
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 8.96 15.06 12.91 15.90 15.67
? Return on total assets
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 5.20 8.69 8.03 10.40 10.76
? Interest Coverage ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio(In Times) 2.82 4.13 4.25 5.74 6.71
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? Debt Service Coverage Ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio(in times) 1.77 2.03 2.07
? Debt- Equity Ratio:Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios 0.69 0.67 0.55 0.47 0.38
? Proprietors Fund Ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (%) 57.89 57.70 62.20 65.39 68.79
? Fixed assets turnover ratio
Year 2011-2012 2012-2013 Ratios (times) 0.81 0.94
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2013-2014 2014-2015 20015-2016
0.99 1.16 1.19
? Total Asset Turnover ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios(in times) 0.69 0.76 0.77 0.91 0.93
? Capital Turnover ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios (in times) 0.72 0.79 0.81 0.95 0.98
? Working Capital turnover ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios(in times) 6.67 4.99 4.62 5.48 5.66
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? Stock turnover ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios (in times) 6.47 2.96 2.53 2.81 2.96
? Debtors’ ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratios(in days) 34 36 38 35 37
? Creditors Ratio
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Ratio (in days) 57 71 70 71 78
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Statement Showing Sales for the Different Products
Product Milk pan Fry pan Tawa1 Tawa2 Handi Casserole1 Casserole2 Kadai Pressure Cooker1 Pressure Cooker2 Pressure Cooker3 Total Opening stock 0 0 0 0 0 0 0 0 0 0 0 2011-2012 Production Sales 6000 5500 0 0 14400 13500 0 0 8400 7600 10080 9200 0 0 11400 10600 11520 10800 0 0 0 0 Closing stock 500 0 900 0 800 880 0 800 720 0 0 Total sales 1677500 0 4941000 0 4172400 3652400 0 4717000 9223200 0 0
61800 57200 2012-2013 Production Sales 500 0 900 0 800 880 0 800 720 0 0 6600 0 15000 0 9000 11400 0 12000 12000 0 0 6200 0 14400 0 8500 10900 0 11300 11500 0 0
4600
28383500
Product Milk pan Fry pan Tawa1 Tawa2 Handi Casserole1 Casserole2 Kadai Pressure Cooker1 Pressure Cooker2 Pressure
Opening stock
Closing stock 900 0 1500 0 1300 1380 0 1500 1220 0 0
Total sales 1928200 0 5400000 0 4819500 4425400 0 5175400 10028000 0 0
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cooker3 Total 4600 66000 62800 2013-2014 Production Sales 900 0 1500 0 1300 1380 0 1500 1220 0 0 3000 3200 4000 3450 9000 8300 8000 7250 8000 8050 7000 7100 6200 5350 11500 11650 7000 6950 4500 2800 3700 2250 7800 31776500
Product Milk pan Fry pan Tawa1 Tawa2 Handi Casserole1 Casserole2 Kadai Pressure Cooker1 Pressure Cooker2 Pressure Cooker3 Total
Opening stock
Closing stock 700 550 2200 750 1250 1280 850 1350 1270 800 550
Total sales 995200 1473150 3112500 1769000 4564350 2882600 979050 5335700 6060400 2823100 2265750
7800
71000 67250 2014-2015 Production Sales
11550
32260800
Product Milk pan Fry pan Tawa1 Tawa2 Handi Casserole1 Casserole2 Kadai Pressure Cooker1 Pressure Cooker2 Pressure Cooker3
Opening stock 700 550 2200 750 1250 1280 850 1350 1270 800 550
Closing stock 550 350 1250 600 800 600 570 900 910 650 420
3200 3350 4350 4550 8500 9450 8200 8350 7800 8250 6700 7380 6400 6680 11400 11850 7100 7460 4800 3250 4950 3380
Total sales 1041850 1942850 3543750 2037400 4677750 2996280 1222440 5427300 6505120 3776850 3403660
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Total
11550
71700 75650 2015-2016 Production Sales
7600 365752250
Product Milk pan Fry pan Tawa1 Tawa2 Handi Casserole1 Casserole2 Kadai Pressure Cooker1 Pressure Cooker2 Pressure Cooker3 Total
Opening stock 550 350 1250 600 800 600 570 900 910 650 420
Closing stock 1020 330 640 920 490 880 480 570 740 530 1370
3950 3480 4570 4590 8620 9230 8840 8520 7800 8110 7250 6970 6530 6620 11510 11840 7250 7420 4840 4480 4960 3530
Total sales 1082280 1959930 3461250 2078880 4598370 2789220 1211460 5422720 6470240 3784480 3554710
7600
75640 75170
7970
36413540
CAPITAL BUDJETING
? PAYBACK PERIOD
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 PAT 2125633 3649175 3344581 4184136 4222398 Depreciation Preliminary exp. Cash Inflow Written off 1630000 140000 3895633 1430860 140000 5220035 1277903 140000 4762484 1124455 140000 5448591 990427 140000 5352825
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Total cash inflow
24679568
Cash out flow=37514800
Payback period is not possible because whole amount of outflow is not recovered in 5 years.
? Discounted payback period: It is also not obtained because whole amount is not recovered in 5 years ? Average rate of return:
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Total Pat 2125633 3649175 3344581 4184136 4222398 17525923 Avg. Investment 35999800 34469370 33244989 32043810 30986369 166744338
Average PAT× 100 Average investment 3505185 33348868 = 10.51% ? 11% × 100
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? NPV (11% cost of capital)
Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Total Cash P.V. Discounted inflow Factor inflow 3895633 0.901 3509965 5220035 0.812 4238668 4762484 0.731 3481376 5448591 0.659 3590622 5352825 0.594 3179579 18000210
Cash outflow = 37514800 NPV= Net cash inflow- Net cash outflow = 18000210-37514800 = (- 19514590) NPV is negative because net cash outflow is greater than net cash inflow.
? IRR:
Fakepayback period = Cash outflow Avg. annual cash inflow = 57514800 4935914 = 7.6 years The fakepay back period is out of range in annuity table. So calculation of IRR is also not possible.
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STATEMENT OF BREAK-EVEN SALES
Particular Fixed cost Salary of permanent staff Insurance Depreciation Interest on loan Preliminary exp. Written off Bonus Electricity OTHER exps. Total Variable cost Wages to workers Bonus Electricity Carriage inward Repair &maintenance Raw material consumed Advertisement Packing Rent of vehicles Other charges 2502000 500000 1630000 1793000 140000 300000 120000 180000 7165000 2730000 500000 1430860 1793000 140000 192000 122000 176000 7083860 2908800 500000 1277903 1573000 140000 208000 131000 151850 6890553 3049800 500000 1124455 1353000 140000 274000 128500 198200 6767955 3161400 500000 990427 1133000 140000 318400 130400 229950 6603577 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
2184000 200000 120000 1200000 200000 11544295 1200000 1000000 150000 150000
2308800 192000 1248000 210000 220000 12599725 1037800 174200 918000 170000
2340000 208000 1309000 190000 235000 13712737 953500 176500 928000 172000
2371200 274000 1325500 230000 320000 16204463 1281250 186750 982000 195000
2433600 318400 1367600 203700 342000 16278666 1015500 184500 983000 187000
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Total (A) Sales less:vari.cost Contribution less: fixed cost Profit P/V ratio (B) Break even sales(Rs.) Margin of safety (A-B)
17948295 28383500 17948295 10435205 7165000 3270205 36.77% 19485994
19078525 31776500 19078525 12697975 7083860 5614115 39.96% 17727377
20224737 32260800 20224737 12036063 6890553 5145510 33.85% 20356139
23370163 36575250 23370163 13205087 6767955 6437132 36.10% 18747798
23313966 36413540 23313966 13099574 6603577 6495997 36.97% 18358568
8897506
14049123
11904661
17827452
18054972
SWOT ANALYSIS
“SWOT analysis is the analysis which shows the actual feasibility of the project reflecting the strengths, weaknesses, opportunities and threats.”
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Strengths of our project:? Since the location of our firm is situated at Odhav which is an industrial area, we enjoying benefits of labour force at cheap rate and alsoin emergency the workers (i.e. temporary workers) can be held very easily at daily basis. ? Our firm is situated on the high-way so easy transportation facility is available.
? There are no any other manufacture companies dealing with manufacturing of non-stick cookware, so we can get more market coverage area.
Weaknesses:-
? This industry involves huge cost in terms of installation. ? Lack of awareness about the product among the customers. ? Lack of confidence among the customers, as it is a new segment in cookware.
Opportunity:-
? There are few competitors in the market; there is a scope of getting maximum share in the market.
Threats:
The following strategies of the competitors can affect our business adversely.
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? Price ? Better services ? Use of new technology: New technology is coming every now and then. So the company might be unable at a time to adopt it.
? Marketing & fluctuations of prices
CONCLUSION
By conducting and extensive research on all aspects of establishing Supreme nonstick cookware Manufacturing Unit, We conclude that it is infeasible to carry on.
Here, we would like to conclude that our project with an enormous knowledge about non-stick cookware. This task has provided us with much needed breathe stronger mundane activities that one has to undergo.
A special thanks giving not only for the co-operation of Garuda Private Limited, that we visited but also to our professors specially to our faculty guide Mrs. Hiral Parikh who gave us such a wonderful opportunity to learn about practical aspect of life and team work. It offered us an opportunity to have healthy interactions among ourselves and with the faculties which we always cherish.
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This project made us realize that how difficult is to bring a thing into reality. Giving concept is not only thing but having it started with scratch to it full competition is actual counts the most.
BIBLIOGRAPHY
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Marketing Management (Philip Kotler)
? Financial Management (I. M. Pandey)
? Managerial Economics (Craig H. Petersen)
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WEBOGRAPHY
? www.google.com ? www.wikipedia.com
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THANK YOU
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