INTRODUCTION

The 21st century is developing all the manner is speedy. A

small firm is very much important of developing country. A
small firm is to develop the economy of country because to
develop the balance regional growth; remove unemployment,
under employment & poverty etc.
A small firm establishes is very much important of
developing country because to less capital required & also to
more use of man power not automation .so not
unemployment or under employment created. A larger firm to
concentrate of economic power so not balanced growth of
nation.

“A SMALL FIRM IS ALSO FOUNDATION OF LARGE FIRM”

1
 PROJECT AT A GLANCE

NAME OF UNIT :- PARAMOUNTPLANT

PVT. LTD.

 ADDRESS OF OFFICE :- 156,REAL ESTATE

SHAPER (VERAVAL)
RAJKOT. - ,
 ADDRESS OF FACTORY :- 156 REAL ESTATE,
SHAPER (VERAVAL)
RAJKOT. -
 FORM OF ORGANISATION: - PARTNERSHEP FIRM
 SIZE OF ORGANISATION : - SAMLL SCALE UNIT.
 NAME OF PRODUCT : - BATH SOAP
 SSI RIGISTRATION NO. : - APPLICATON HAS
MADE
 BRAND NAME : - ‘PURGE’
 LINE OF ACTIVITY : - MANUFACTURING
 PARTNER NAME :- HITESH J. SAVALIYA
ASHISH J. SAVALIYA
KETAN R. VIRADIYA
 BANKER : - SBI
ICICI
 AUDITOR : -MR. MAYUR KHUNT
(C.A.)
 NUMBER OF EMPLOYEE : - 29
 COST OF PROJECT : - RS. 98, 10,000

2
 PARTNER’ S PROFILE

 NAME :- HITES J. SAVALIYA

 AGE :- 20 YEAR

 EDUCETON :- B.B.A. (WITH FINANCE)

 FINANCIAL :- 34%

 EXPERIENCE :- FRESHER

 RESPONSIBILITY :-FINANCIAL ASPECT.

 ADDRESS :- TO. HADAMTALA,

(KALAVAD ROAD)

TA:- GONDAL

DIST:- RAJKOT

 NAME :- ASHISH J. SAVALIYA

3
 AGE :- 25 YEAR

 EDUCETON :- Msc. (WITH CHEMISTRY)

 FINANCIAL :- 33%

 EXPERIENCE :- 2 YEAR

 RESPONSIBILITY :- PRODUCTION DEPARTMENT

 ADDRESS :- TO. HADAMTALA,

(KALAVAD ROAD)

TA:- GONDAL

DIST:- RAJKOT

 NAME :- KETAN R. VIRADIYA

 AGE :- 20 YEAR

 EDUCETON :- B.B.A. (WITH MARKETING)

 FINANCIAL :- 33%
4
 EXPERIENCE :- FRESHER

 RESPONSIBILITY :- MARKETING DEPARTMENT

 ADDRESS :- TO. HADAMTALA,

(KALAVAD ROAD)

TA:- GONDAL

DIST:- RAJKOT

BASES AND PRESUMPTION

A plant will work in two shifts.
1) 8:00 am to 1:00 pm
2) 2:00 pm to 7:00pm.

A unit’s installed capacity is 100% and unitized capacity

is 60%.

A loan rate is 12% at current level of market.

Price of labor wage rate, Raw material and machine are

taking at current price.

5
 Payment of employees is at current price.

ORGANIZATION
STRUCTURE

Management

Hitesh J. Savaliya Production

Ashish J. Savaliya Marketing
Ketan R. Viradiya
Accountant Manager 6
Manager
 Helper
Material Quality
Promotion Sales
Purchase Control
Officer Executive
Officer Officer
Production Receivable

Process Officer

Officer

IMPLEMENATION SCHEDULE
A firm or business unit to start is not short time because
to follow procedure. A trim to idea generation to actually
production start in how much time to spend is known an
implementation schedule.

IMPLEMENATION SCHEDULE

SR NO. ACTIVITIES TIME SPEND

1 Preparation of project report 1 month

2 Registration of SSI 1 week

3 Financial arrangement 1 month

4 Purchase Raw material & machines 1 month

5 Installation of machinery 15 days

7
 6 Electricity 1 week

7 Recruitment staff 15 days

4 months &
Approximately total time
15 days

JUSTIFICATION
OF
LOCATION
The location of business is most important factors for
success or failure because any organization unit chief
objective is to maximize profit through the minimization of
cost of production. Every entrepreneur of a business unit mast
give full concentration to the suitable location of his
enterprise location enables the factor to operate smoothly
efficiently and at minimum cost to choose a location one time
it can not be changed in the near future without facing much
difficulty.
India has decided a less harmor development of country
so government to different tool are adopt to develop that area
that are like shapar GIDC metoda GIDC kuvadva GIDC and
ankleshwar GIDC etc. this unit is situated also at shaper GIDC

8
because to help the government for development all area a
project is situated at,
To choose the location also concentrate different factors
and then decided. These factors are as follow:

(1) MARKET :
A market point of view to also available a
large market in near by area for our product bath shop.

(2) LABOR :
The unit to get a stable labor force in near by
area at right time and right place at reasonable time.

(3) TRANSPORTATION FACILITY :

This location near by
area to easily available of road railway transportation at
minimum cost.
(4) GOVERNMENT FACILITY :
At present era
government also help to the small scale enterprise with the
help of different manner like minimum take rate to get
cheaper rate land all infrastructure facility give cheaper rate
loan and subsidies etc.
(5) AVALABLE OF INFRASTRUCTURE FACILITY:

9
 An
enterprise to get a good tape of infrastructure facility like
water, telephone, electricity, and drainage etc.
(6) PERSONAL FACTORS :
The location is also near by the
Gondal road or 8b national highway and to so only 15 km
away from Rajkot.

INTRODUCTION
OF
PRODUT
Generally initial time a human to cline in his body with
the help of water but then to invention new chemical so
process on that chemicals and made a soap.

Firstly to make soap only for use bath but after then made
different reality soap and special soap for different disease.
This all soap to use for A maintains a good health and
generally all of us said.

“First happiness to get own manners”

10
 This sentence also prove a good health maintain to his
own manner. This all soap is good level market available at
present and also future market is good.

MARKET FOR PRODUCT

At rat time market is favorable for at soap, but here to

concentrate on bath soap.
An over all market is divided in three classes like upper
class, middle class and lower class. In three classes, to our
concentrate on middle class.

11
 To show the above graphic and understand a market
share which manner distribute. Remaining 30 % market to
grab all other company.

DETAILS OF RAW MATERIAL

& SUPPLIERS

A bath soap to use different raw material for different quality. But general raw material as
follow :

Raw Material Suppliers

Soap Noodles 1 Godarage industries
Industrial estate 3
Puna

12
 2 Hindustan uni lever limited
45 choksi industrial area (G.I.D.C.)
Mumbai
Glisrin Nirma industries
Other chemical (related Krishna chemical industry
quality)
121, star chamber
Harihar chock
Rajkot
Perfumes S.H. kelkar & Co. PVT. LTD.
Lal bahadur Shatri road
Mulund -Mumbai
Color S.H. kelkar & Co. PVT. LTD.
Krishna chemical industry

MACHINERY &
EQUIPMENT
A generally to different high technology used for large
scale production but this unit following machinery used.
Machinery
o Mixture
o Plodder
o Stamping machine
13
 o Die and mold
o Cutting table
o Packing table
Equipment
o Weight machine
o Container
o Bucket
o Tumbler
o Powder
o Acid
o Wiper
o Cistern

PRODUCTION PROCESS

A process of soap making is an important part of an

organization. This process made a ultimate output or
production get and to sell in market and get profit. Our
production process as follow.

Noodles + Perfume + Color +

Chemical (Related Soap) + Water

14
 Mixing
Hitting
Plodder
Drying
Cutting
Shape
Stamping
Box packaging

DETAILS OF MARKETING

A product nature what type that manner and done

marketing strategy and also to concentrate a target for our
product. Our product bath soap is widely available and also
large number of manufacturing organization. So that manner
stands in market to follow market strategy.

15
 Our bath soaps to target on middle class people so our
product to reach our target market that manner to follow
distribution channel.

Producer

Agent

Whole seller

Retailer

Customer

PRICING STRATEGY

At that time market is divided large number of

manufacturer of large scale and small scale to stand in market
so that manner to set a price of product to good manner stand
in market means prevailing trend to follow our price of
product as follow as :-

16
 Quantity Number of Price
Per soap Soap (packing)
125 gram 4 48
100 gram 3 30
50 gram 1 5

FINANCIAL ASPECT
A. Fixed capital
1. Land

Sr. Particular Area Rate Total value

no.
(in sq. feet) (in sq. feet) (In Rs.)

17
 1 Open land 4000 1000 40,00,000

2. Building
Sr. Particular Area Rate Total value
no.
(in sq. (in sq. feet) (in Rs.)
feet)
1 Building 3500 500 17,50,000
area
covered for
office,
storage etc.

3 .Machinery & Equipment

Sr. Particular Quantity Rate Amt.(Rs)

no.
 Machinery
1) Mixtures 2 1,50,000 3,00,000
2) Plodder 2 1,75,000 3,50,000
3) Stamping 2 40,000 50,000

18
 4) Packing 2 10,000 20,000
5) Die mold 4 1000 4,000
6) Cutting 2 10,000 20,000

 Equipment
1) Weight machine 1 25,000 25,000
2) Container 3 1,000 3,000
3) Bucket 15 100 1,500
4) Tumbler 15 20 300
5) Cistern 5 300 1,500
6) Wiper 5 140 700
Total(Rs.) 8,06,000

4. Office Equipment

19
 Sr. Particular Quantity Rate Amt.(Rs)
no.
1) Computer + Printer 2 25,000 50,000

2) Telephone 3 5,000 15,000

3) Air Condition 2 20,000 40,000

4) Fax 1 10,000 10,000

5) Water cooler & purifier 2 10,000 20,000

6) Vacuum cleaner 2 5,000 10,000

Total(Rs.) 1,45,000

5. Furniture

20
 Sr. Particular Quantity Rate Amt.(Rs)
no.
1) Sofa set 3 8,000 24,000

2) Revolving chairs 2 3,000 6,000

3) Office chairs 5 200 10,000

4) Cabin table 2 6,000 12,000

5) Cupboards 3 3,000 9,000

6) Glasses & Wooden - - 27,000

Total(Rs.) 79,000

6. Total fixed capital

Sr. no. Particular Amt.(Rs)

1) Land cost 40,00,000
2) Building 17,50,000
3) Machinery & equipment 8,06,000
4) Office equipment 1,45,000
5) Furniture 79,000
Total(Rs.) 67,80,000

21
 B. Working Capital
1. Raw material

Sr. Particular Quantity Rate Amt.(Rs)

no.
(in kg.) (Per kg.)
1) Soap noodles 6,000 70 4,20,000
2) Glisrian 4,000 100 4,00,000
3) Perfumes 10 700 7,000
4) Colors 10 700 7,000
5) Other chemicals’ 16 1,000 16,000
Total (Rs.) 8,50,000
2. Salary & Wages(1 month)

22
 Sr. Designation No. of Rate per Amt.(Rs)
no. person man
1) Production Manager 1 14,000 14,000
2) Marketing manager 1 14,000 14,000
3) Accountant 1 6,000 6,000
4) All officers 6 6,000 36,000
5) Receptionist 1 3,000 3,000
6) Peons 2 2,000 4,000
7) Supervisions 1 4,000 4,000
8) Skilled worker 5 5,000 25,000
9) Unskilled worker 10 1,500 15,000
10) Security guard 1 1,500 1,500
Total (Rs.) 1,22,500

3. Utilities(One month)

Sr. no. Particular Amt.(Rs)

1) Power 18,000
2) Water 2,000
Total (Rs.) 20,000
4. Other contingent expenses

23
Sr. no. Particular Amt.(Rs)
1 Postage & stationary 1,000
2 Repair & Maintenance 1,500
3 Telephone Bill 2,000
4 Transportation Charges 3,000
5 Insurance Premium 2,000
6 Advertising expense 5,500
7 Sales expenses 1,500
8 Misc. Expenses 1,000
Total Expenses (Rs.) 17,500

5. Total working capital

Sr. Total Amt. Total Amt.

no. Particular
(One Month) (Three Months)
1) Raw material 1,22,500 3,67,500
2) Salary & Wages 8,50,000 25,50,000
3) Utilities 20,000 60,000
4) Other contingent 17,500 52,500
expenses
Total (Rs.) 10,10,000 30,30,000

24
 C. Total Capital
Investment

Sr.
no. Particular Total(Rs)
1) Total Fixed capital 67,80,000
2) Total Working capital 30,30,000
Total Project Cost 98,10,000

d. Sources of
Finance

Sr. Total Amt Loan of Owner

no. Particular (Rs.) Borrowed Capital
Total Fixed
1)
Capital 67,80,000 9,00,000 58,80,000
Total Working
2) Capital 30,30,000 11,00,000 19,30,000
Total Amt (Rs.) 98,10,000 20,00,000 78,10,000

E. Interest
On Capital

25
Sr. Particular Amt (Rs.) Rate of Total Amt.
no. Interest
Of Int.(Rs.)
1 IDBI Loan 20,00,000 12% 2,40,000
2 Own Contribution 78,10,000 8% 6,24,800
Total Amt. of Interest 8,64,800

F. Calculation of Depreciation

Sr.
no. Particular % Total(Rs)
1 Building 10% 1,75,000
2 Mach & equipment 20% 1,61,200
3 Office equipment 10% 14,500
4 Furniture 15% 11,850
Total Amt. 3,62,500

G. Cost
Of capital

26
 1stYear (60%
Particular
Prod. Capacity)
Variable Cost
Raw Material 1,02,00,000
Wages 4,80,000
Utility 2,40,000
Other contingent Exp. 2,10,000
Total Variable Cost 1,11,30,000
Fixed Cost
Salary Of Staff 9,90,000
Depreciation 3,62,550
Total Interest 8,64,800
Other exp.(20% of the contingents
exp.) 42,000
Total Fixed Cost 22,59,350
Total cost 1,33,89,350

Operating Statement

27
 Particular Amt.(Rs.) Total (Rs.)
Sales [A] 13516000
Cost of production

Raw Material 1020000

Utility 240000
Wages 480000
10920000
Add opening stock -

Less finished stock 115600

Total opening cost [B] 10804400 1084400
Gross profit (A-B=C) 2711600
Indirect Exp.

Salary staff 990000

Dep. 362550

Other expenses
Variable (50% of other exp.) 105000
Fixed (20% of other exp.) 42000
Total indirect exp. [D] 1499550 1499550
EBIT (C-D=E) 1212050
Interest on own capital 624800
Interest on borrowed capital 240000
Total interest [F] 864800 864800
EBT (E-F=G) 347250
-tax (50%) 173625
28
EAT 173625
 RATIO ANALYSIS

 Return on investment
EBIT
Return on investment =
Total capital employed
1212050*100
Return on investment =
9810000

29
 Return on investment = 2.36 %

 Cost of capital

Interest on owned capital +

interest on borrowed capital
Cost of capital = *100
Capital employed
864800*100
Cost of capital =
9810000

Cost of capital = 8.82 %

 Gross Profit Ratio

Gross Profit*100
Gross Profit Ratio=
Total sales
2711600*100
Cost of capital =
13516000

Cost of capital = 20.06 %

 Net profit ratio

Net profit ratio = Net profit ratio*100

30
 Total sales

347250*100
Net profit ratio =
13516000

Net profit ratio = 2.57 %

 Fixed cost to net worth ratio

Fixed cost to net worth Fixed cost
ratio= Net worth

Fixed cost to net worth 6780000

ratio= 9810000
Fixed cost to net worth
0.69 %
ratio=

BEP ANALYSIS
In this unit three types of packing of product and this old
packing are different price. So,
Average price = 45+30+5
3
= 26.67
So, production unit
31
 = Total sales
Sales price per unit
= 13516000
26.67
= 506787 unit.
Average variable cost
= Total variable cost
Production unit
= 11130000
506787
= 21.96

32
Contribution
= sales price – average variable cost
= 26.67 – 21.96
= 4.71
Break even point (in unit)
= Total fixed cost
Contribution
= 2259350
4.71
= 479692 unit.

33
 RISK FACTORS

 Changes in the government policy may after the

profitability of the firm.
 High level of competition with existing unit like
Hindustan Unilever limited, Godrage etc.
 In future to economic environment changes so that
organization affected like inflation, recession.
 A market of other firm high level expenses to advertise
and this unit not bear that advertising expenses.

34
 FUTURE PLAN

Future planning is very important for the success of the

business unit. A future are the predetermined courses of
action to achieve a specified goal. A future plan of the
company wants to do in future.
Future plan of universal plan specific medical soap and
different qualitative soap.

35
 CONCLUSION

A developing country is necessary to develop the small

sectors or cottage industry because to balanced growth means
widely distribute of income. A small sector are also create
employment in the economy as the production is done by the
manpower.
In this situation I am very proud to study this subject and
this business and prepare report on it.

36