Professional Documents
Culture Documents
Preface
I am extremely happy to submit this report for small-scale
industries under the prescribed syllabus of Saurashtra University. The subject
Entrepreneurship & manufacturing small scale business helps to create &
develop particular skill attitudes among the student in practical & professional
education faculty of B.B.A.
Today most of small-scale industries in the country are
handicapped and there is an urgent need for substitution of traditional
management techniques by specific system of management. Hence it has
been suggested to under such short term training to manage the business unit
effectively.
Declaration
I the undersigned, Dharmesh B. Mehta student of T.Y.B.B.A here
by declare that the project work presented in this report is my own work and
has been carried out under the supervision of Mr. kuldip of R.P. Bhalodiya
College Rajkot.
This work has not been previously submitted to any other
university for any examination.
Date:
Place: - Rajkot
Signature of student
[Dharmesh B. Mehta]
Acknowledgment
Being a student of T.Y.B.B.A. We are required to prepare a
product project report as a part of our subject entrepreneurship and
management of small-scale industries. This report has been prepared by my
financial capacity and regulation sentence structure.
INDEX
Sr.
No.
Topic
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Production Process
Inspection and Quality Control
Market Analysis
Basis & Presumption
Financial Aspects
Ratio Analysis
Raw Material Suppliers
Machinery Suppliers
Risk Factor
Conclusion
Page
no.
Project At Glance
Name of the firm
Lio Leather Pvt.Ltd.
Product Name
Leather Bags, Purses $ Belts
Form of Organization
Partnership firm
Size of Unit
Small Scale Industry
Partners Name
Dharmesh B.Mehta
Mayank C. Amrutiya
Market Area
Gujarat & Maharashtra
8
Banker
Bank of Baroda, Rajkot.
Accounting Year
1st April to 31st March
Partners Background
Partner-1
Name
:-
Dharmesh Mehta
Address
:-
Jay Ambe
6, sadhana society,
Nr.anand nagar,
Rajkot.360 002
Age
:-
20 Year
Qualification
:-
BBA ( Finance)
Experience
:-
Capital Contribution
:-
25%
Share in profit
:-
50%
Nature of work
:-
Finance Manager
10
Partner-2
Name
:-
Mayank Amrutiya
Address
:-
Age
:-
24 Year
Qualification
:-
BBA(Marketing)
Experience
:-
2 Years in a company
Capital Contribution
:-
25%
Share in profit
:-
50%
Nature of work
:-
Marketing Manager
11
Implementation Schedule
The major activities in the implementation of the project have
been listed and the average time for implementation is estimated at 11 month.
SR NO PARTICULARS
MONTH
1.
Preparation of Report
month
2.
1 month
3.
3 month
4.
1 month
Procurement
1 month
Power Connection
1 month
Installation of Machine
1 month
5.
1 month
6.
Recruitment of staff
1 month
12
Location
Location is very import factor to succeed industry. Every
entrepreneur of a business unit must give full consideration to the suitable
location of his enterprise. An enterprise must choose an ideal location at the
time of launching the enterprise. The selection of an appropriate location
enables the factory to operate smoothly efficiently and minimum of cost.
It is quite known that metoda G.I.D.C. (Rajkot) is an industrial
area & we can obtain any facility as a convenient way. Surrounding area is
containing a big market for the Leather. There are many other facilities of
factors, which inspired us to choose proposal location.
LABOURS: ~
Generally all types of main power are available have at
RAW-MATERIALS: ~
There is more transportation facility because of center point of
Saurashtra. From this we can easily get the raw materials like Leather, PVC
Solution etc., we purchase raw materials from Delhi, Aakola and also from
Rajkot.
13
INDUSTRIAL ATMOSPHERE: ~
There is better industrial atmosphere in metoda near Rajkot as
so many other industrial. Like Textile, Steel, Cotton, chemical, oil Industrial
etc., are located there. Hence we could easily develop our industry through
inspiration of other industries.
FINANCIAL FACILITIES: ~
There are so many banks and individual sours from which our
OTHER FACTORS: ~
There are so many other factors, like electric connection,
14
15
Product Introduction
The leather product of this industry related with each &every
person though he or she is a child, elder or old. It is current years demand or
fashion that each &every wants different types of leather product through it is
related with clothes, shoes, purses, belts or school bags.
Generally majority of people uses leather products because
other products related with plastic and rubber etc., are not so much good for
nature and status. It is only reason why demand for leather work never
decreases.
We have so many designs and patterns as per running fashion.
We produce the item as per the demand of the market i.e. which type of item
customers wants to purchase.
16
Production Process
There are various steps of production process they are as follows:-
(1) Receiving of Balls: The first steps in the process to making product are
receiving of balls. Generally each ball includes 100 kgs. Of leathers.
(2) Cutting: In the second step of production the leather is cut as per
the diagram of various products and of various sizes with the helps of cutting
machine.
(3) Sewing: In the next step of production the leather is sewed as per
the design and pattern with the machine .
(4) Sticking: In this step, a product is going to be sticked with the help
of the solution. This process is mostly related with Belt.
17
(6) Packing: The last step of process is packing of each item. All
three items are packed in different boxes. These products are sent to different
places as per the order.
18
19
Market Analysis
The life style of urban class is changing & therefore the demand
for leather products is increasing at a rapid rate. Purses, Belts, School bags
itself suggest status.
These three products have wide market. Because each & every
lady uses purses though she is professional or housewife. Belts are used only
for mans status and different types of school bags are need for children. So
these three products are used only for status and thats why we can say that
these products have broad market.
Not only is this but the most important thing that our product
should be standard one.
20
The scheme is based on 50% efficiency for 16 hour in a day for 312
days in a year.
2)
3)
Labors wages are paid as per the rate prevailing in the area.
4)
5)
6)
21
FINANCIAL ASPECTS
(A) FIXED CAPITAL DETAILS OF THE PROJECT
1. Land & Building: Area
Rate
555444444452
Sr.
No.
1
2
3
4
5
Type of Machinery
Qty.
Cutter
Sewing Machine
Sticking Machine
Polishing Machine
Loose Tools
Rate
2
15
2
5
-
Amt.
30000
50,000
25,000
20,000
-
Total
60,000
2,25,000
50,000
1,00,000
30,000
4,65,000
3. Furniture: Sr.
No.
1
2
Particular
Amt. Rs.
Computer
Office Furniture
Total
25,000
30,000
55,000
22
Particular
Land & Building
Machinery
Furniture
Total
Amt. Rs.
6,60,000
4,65,000
55,000
11,80,000
Particular
Amt.
3,00,000
40,000
50,000
10,000
Leather
Solution
Cotton Cloths
Chain, Threads & Switch
Tot
al
4,00,000
23
Particular
Supervisor
Tailor
Semi- Skilled Worker
Unskilled Worker
Accountant
Marketing Manger
Clerk
Watchman
Salary
3,000
3,000
2,000
1,200
3,000
7,000
1,500
1,000
No. Of
employee
2
10
3
5
1
1
1
1
Amt.
6,000
30,000
6,000
6,000
3,000
7,000
1,500
1,000
24
Total
24
Particular
Amt.
8,000
4,000
700
12,700
60,500
Power
Transportation Cost
Water
Total
Other
Particulars
Postage and stationery
Repair and Maintenance
Insurance and Taxes
Sales Expenses
Telephone Expenses
Miscellaneous Expenditure
Total
Total Value
1,000
900
2,000
8,000
1,200
900
14,000
Particulars
Raw Materials
Salary and Wages
Utilities
Other expenses
Total
Total Value
(1 month)
4,00,000
60,500
12,700
14,000
4,87,200
Total Value
(3 month)
12,00,000
1,81,500
38,100
42,000
14,61,600
25
Particular
Amt.
Fixed Capital
Working Capital
Total
11,80,000
14,61,600
26,41,600
Sources of Finance
Sr. No.
1
2
Particular
Partners Capital
Borrowed Capital
Capital %
50%
50%
Total
Amt.
13,20,800
13,20,800
26,41,600
Interest on Capital
Sr. No.
1
2
Particular
Partners Capital
Borrowed Capital
Interest Rate
9%
12 %
Total
Amt.
1,18,872
1,58,496
2,77,368
Depreciation on Assets
Particular
1
2
3
Building
Machinery
10%
20%
66,000
93,000
66,000
93,000
66,000
93,000
Furniture
15%
8,250
8,250
8,250
Total
1,67,250
1,67,250
1,67,250
26
Particular
Salary
Interest
Depreciation
Other Exp.
Total
1st Year
1,50,000
1,58,496
1,67,250
20,000
4,95,746
2nd Year
1,50,000
1,58,496
1,67,250
20,000
4,95,746
3rd Year
1,50,000
1,58,496
1,67,250
20,000
4,95,746
Sr. No.
1
2
3
4
Particular
Raw Material
Wages
Other Exp.
Utility
Total
1st Year
60%
48,00,000
5,76,000
1,68,000
1,52,400
56,96,400
2nd Year
80%
64,00,000
7,68,000
2,24,000
2,03,200
75,95,200
3rd Year
100%
80,00,000
9,60,000
2,80,000
2,54,000
94,94,000
27
Cost of Production
Particulars
1st year
2nd year
3rd year
(60% Prod.
(80% Prod.
(100% Prod.
Capacity)
Capacity)
Capacity)
Variable Cost
Raw material
Wages
Other expenses
Utility
Total Variable Cost
48,00,000
5,76,000
1,68,000
1,52,400
56,96,400
64,00,000
7,68,000
2,24,000
2,03,200
75,95,200
80,00,000
9,60,000
2,80,000
2,54,000
94,94,000
Fixed Cost
Salary to Staff
Depreciation
Interest paid
Other expenses
Total Fixed Cost
Total Cost
1,50,000
1,67,250
1,58,496
20,000
4,95,746
61,92,146
1,50,000
1,67,250
1,58,496
20,000
4,95,746
80,90,946
1,50,000
1,67,250
1,58,496
20,000
4,95,746
99,89,746
Sales Estimation
(For 1st year at 60% Production Capacity)
Sr. No.
1
2
3
Particular
Leather Purses
Leather Bags
Leather Belts
Total
Quantity
Rate
Total
23,000
25,000
22,000
125
105
80
28,75,000
26,25,000
17,60,000
72,60,000
28
Amt.
72,60,000
61,92,146
10,67,854
3,73,749
6,94,105
29
Ratio Analysis
(1) GROSS PROFIT RATIO = Gross Profit x 100
Total Sales
= 10,67,854 x 100
72,60,000
= 14.71%
(2) NET PROFIT RATIO
= 6,94,105 x 100
72,60,000
= 9.56%
(3) RETURN ON INVESTEMENT =
6,94,105 x 100
26,41,600
26.28%
100
=41.66%
30
Delhi
Bharat Soluation
Nh 8B
Rajkot 360 002
Steel Well Tailor Material
Jay Khodiyar Road,
Aakola
31
32
Risk Factors
1. Changes in the government policy, may affect the profitability of the
firm.
2. High level of competition with existing units.
3. Adverse climatic condition may affect the availability and prices of raw
materials.
4. It is essential to keep pace with exiting environment so changes should
be needed in quantity, Design, Colour, packing form, etc.
5. Purses, School Bags, Belts are fashionable product so there may be
risk of wastage of raw materials and finished goods.
33
Conclusion
As such we as a citizen of India having some responsibility to uplift the
economic level and also make the life more and more compatible.
In view of above all information which can have the best way to get
comfort in the life of all household work. In earlier time, Leather Product is
being prepared in traditional way and it is consider as time consuming &
wastage of energy. But now with the introducing the technical equipments,
which survives high quality with much quantity in lesser time.
Thus, we are feeling great pleasure to make the product in front of you
and so expecting move response from market& trying to satisfy the
prospecting customer.
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35