ENTREPRENEUERSHIP DEVELOPMENT REPORT

ON

CONSUMER DURABLES

Submitted in partial fulfilment of the requirement for the award of degree

of Bachelor of Business Administration of Christ University, Bangalore-
560029

By,

MR. ANUBHAV AGARWAL(0911508)

MR. UTKARSH AGRAWAL(0911541)

Under the guidance of,

Prof. John Paul

Department of Management Studies

Christ University, Bangalore-560029

2010-2011
 DECLARATION

I hereby declare that, this report titled, “Entrepreneurship Development Report”,

project work carried out by me under the supervision of Prof. JOHN PAUL of Department
of Management Studies, Christ University, Bangalore. This work previously has not formed
part of any basis for the award of any degree or diploma offered by any institution or
university.

This is a record of bonafide and original work submitted by me in partial fulfilment of

the requirements for the award of degree of Bachelor of Business Administration.

Place: Bangalore MR. ANUBHAV AGARWAL(0911058)

Date: MR. UTKARSH AGRAWAL(0911541)
 ACKNOWLEDGEMENT

I would like to express my profound gratitude to all those who have been instrumental in the
preparation of this “Entrepreneurship Development Report. I wish to place on records, my
deep gratitude to my project guide JOHN PAUL, for guiding me through this project with
valuable and timely advice.
I would like to thank Dr (Fr). Thomas. C. Mathew, Vice Chancellor and Dr Jain Mathew,
HOD, for their encouragement.
Last but not least, I would like to thank my parents and friends for their constant help and
support.

ANUBHAV AGARWAL (0911508)

UTKARSH AGRAWAL (0911541)
 CERTIFICATE

This is to certify that, this project report titled “Entrepreneurship Development Report”,
submitted to the Christ University [Department of Management Studies] in partial fulfilment
of the requirements for the award of the Degree of Bachelor of Business Administration, is a
record of the original and independent work carried out by Anubhav Agarwal (0911508)
and Utkarsh Agrawal (0911541) under my guidance and supervision.
This has not previously formed the basis of the award of any degree, diploma awarded by any
institution/ university.

Place: Bangalore
Date: JOHN PAUL
 TABLE OF CONTENTS

SL
CONTENTS PAGES
NO.

1 CHAPTER 1: INTRODUCTION

CHAPTER 2:PROJECT
FEASIBILITY STUDY
2

CHAPTER 3:MARKETING
3
ANALYSIS

CHAPTER 4:FINANCIAL
4
ANALYSIS

CHAPTER 5: PRODUCTION AND

5
OPERATION

6 CHAPTER 6: HUMAN RESOURCE

7 BIBLIOGRAPHY

8 CONCLUSION
Chapter 1: Introduction
Profile of the entrepreneurs:

ANUBHAV AGARWAL

AGE: 18

GENDER: MALE

EDUCATION: Currently Pursing BBA at Christ University

PERMANENT ADDRESS: Piyarelal agarwalla &co, sevoke road, siliguri,

Darjeeling dist,734001

CONTACT NO. 9535207018

EMAIL ID: Coolanubhav2002@yahoo.co.in

UTKARSH AGRAWAL

AGE: 19

GENDER: MALE

EDUCATION: Currently Pursing BBA at Christ University

PERMANENT ADDRESS: 7/88 Tilak Nagar

Kanpur-208002

CONTACT NO. 9379947611

EMAIL ID: Utkarsh1612@gmail.com

Nature of Business:

ABS Consumer Durables pvt ltd. is basically a small scale industry which manufactures TV
with built in inverter and digi card, ABS also manufactures backup systems along with the
TV and separately for the household already having a TV. ABS would be targeting all metro
and major cities in india and aim every household gets the latest technology at their place and
make their TV watching experience qualitative.

Nature Manufacturing and installing.

Size Small-scaled

Sector Electronic Industry

Goods Produced TV with built in inverter and digi card back

up systems along with TV and separately.

Executive Summary

Suppose you are watching a live cricket match in which your home country is playing and it
is the last over of the match. As the ball is about to be hit, suddenly the power goes. What
happens next? You don’t know who wins or who loses. Although you come to know after
some time through someone else or elsewhere the match would have have definitely been
better when watching live.
What if your TV set is still on in spite of a power cut and you end up successfully watching
the whole match. To make this possible, ABS has decided to develop two new products and
launch them in the Consumer Durables Market of India. Our products are:

1. Colour Television with built-in Inverter and Digi card.

2. Television Back-up System
3. Television Back-up System (Digi Card and DVD features included).
India is a country which observes frequent power cuts for long hours in a day. India suffers
from a severe shortage of electric capacity. According to the World Bank, roughly 40 percent
of residences in India are without electricity. In addition, blackouts are a common occurrence
throughout the country’s main cities. The World Bank also reports that one-third of Indian
businesses believe that unreliable electricity is one of their primary impediments to doing
business.

With the motive to know the feasibility of the business idea, we contacted Mr.Suresh, an
Electronic Engineer. We explained him about our project and idea to develop a TV with
built-in Inverter and Digi Card. He understood our idea and decided to help us. At first, he
said that the idea was good but it would be difficult to prepare a TV like that. We told him
that if Laptops could work on a battery, then why cannot the TV. Then he told that to make
this possible he would have to experiment with the TV, then only he would be able to tell us
whether such a product is feasible or not. The following day he informed us that such a TV is
possible to prepare and we were able to convince him to prepare a prototype of the TV. We
bought all the components required to manufacture such a TV from Sandhya
Electronics,M.G Road, Bangalore. In addition we bought a battery, Uplus US 12v 7.6AH,
an Inverter Board and a Digital Set top box. Mr. Suresh assembled all the components and the
TV was prepared and was tested for back up successfully. The TV ran for 3 hours with the
help of battery.

With the success of the TV with built in inverter and Digi Card, we also came up with an idea
of developing a back-up system for households who already have TVs. The purpose of the
back-up would be to boost the electrical capacity of the TVs. Mr Suresh gave us the idea of a
system which would have two 12V, 7.5AH batteries, DVD loader and MPEG board which
will work in similar lines as the UPS but would add up more attributes like DVD and a Digi
Card slot. The back-up system was also tested successfully
.

Our objectives:
• To ensure safety of the produts.
• To improve technology in the nation.
• To maintain standard in our goods.
• To reduce the electricity usage from households.

VISION AND MISSION:

Vision: “To create a world class accessible and feasible technological

platform.”

Mission: “We strive to provide the ever needing electronic requirements of our
customers by offering quality service, genuinely and firm up relationship with
our customers.”

Values

We pledge to operate within the highest ethical standards at all times, we will strive to
exhibit and encourage the following characteristics in all service and tt with our clients .,
by following values like:

 Honesty

 Service

 Civility

 Timely
  Transparency

INTRODUCTION TO SMALL SCALE INDUSTRY

Small Scale Industries may sound small but actually plays a very important part in the
overall growth of an economy. Small Scale Industries can be characterized by the unique
feature of labour intensiveness. The total number of people employed in this industry has
been calculated to be near about one crore and ninety lakhs in India, the main proponents of
Small scale industries.

The importance of this industry increases manifold due to the immense employment
generating potential. The countries which are characterized by acute unemployment problem
especially put emphasis on the model of Small Scale Industries. It has been observed that
India along with the countries in the Indian continent have gone long strides in this field.

Advantages associated with Small Scale Industries:

 This industry is especially specialized in the production of consumer commodities.

 Small scale industries can be characterized with the special feature of adopting the
labour intensive approach for commodity production. As these industries lack capital,
so they utilize the labour power for the production of goods. The main advantage of
such a process lies in the absorption of the surplus amount of labour in the economy
who were not being absorbed by the large and capital intensive industries. This, in
turn, helps the system in scaling down the extent of unemployment as well as poverty.

 It has been empirically proved all over the world that Small Scale Industries are
adept in distributing national income in more efficient and equitable manner among
the various participants in the process of good production than their medium or larger
counterparts.

 Small Scale Industries help the economy in promoting balanced development of

industries across all the regions of the economy.
  This industry helps the various sections of the society to hone their skills required for
entrepreneurship.

 Small Scale Industries act as an essential medium for the efficient utilization of the
skills as well as resources available locally.

Small Scale Industries enjoy a lot of help and encouragement from the government through
protecting these industries from the direct competition of the large scale ones, provision of
subsidies in the form of capital, lenient tax structure for this industry and many more.

INTRODUCTION TO CONSUMER DURABLES INDUSTRY

Before the liberalization of the Indian economy, only a few companies like Kelvinator,
Godrej, Allwyn, and Voltas were the major players in the consumer durables market,
accounting for no less than 90% of the market. Then, after the liberalization, foreign players
like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa came into the picture. Today, these
players control the major share of the consumer durables market.

Consumer durables market is expected to grow at 15-20% in 2011-2012. It is growing very

fast because of rise in living standards, easy access to consumer finance, and wide range of
choice, as many foreign players are entering in the market.

On the flip side, the presence of a large number of players in the consumer durables market
sometimes results in excess supply.Consumer durables are the products whose life
expectancy is at least 3 years. These products are hard goods that cannot be used up at once.
With easy availability of finance, emergence of double-income families, fall in prices due to
increased competition, government support, growth of media, availability of disposable
incomes, improvements in technology, reduction in customs duty, rise in temperatures,
growth in consumer base of rural sector, the consumer durables industry is growing at a fast
pace. Given these factors, a good growth is projected in the future, too.

The penetration level of consumer durables is very low in India, as compared with other
countries. This translates into vast unrealized potential.
For example, in case of color televisions (CTVs), the penetration level of various countries is:

India 24%
Brazil 11%
China 98%
US 333%
France 235%
Japan 250%
According to National Council for Applied Economic Research (NCAER), Indian consumer
class is growing at a fast rate. This in turn is benefiting the consumer durables
manufacturers.

The Indian Consumer Durables Industry can be segmented into 3 Key Groups:

1) White Goods
 Refrigerators
 Washing Machines
 Air Conditioners
  Speakers and Audio Equipments

2) Kitchen Appliances/Brown Goods

 Mixers
 Grinders
 Microwave Ovens
 Iron
 Electric Fans
 Cooking Range
 Chimneys

3) Consumer Electronics
 Mobile Phones
 Televisions
 MP3 Players
 DVD Players
 VCD Players

Several Key Trends Driving Growth in the Sector:

Income growth and availability of financing

• Disposable income levels are rising and consumer financing has become easier.

Increased affordability of products

• Advanced technology and increasing competition are narrowing the price gap and the
once expensive appliances are becoming cheaper.
Increasing share of organised retail

• Urban and rural markets are growing at the annual rates of 7%–10% and 25%,
respectively, with organized retail expected to garner 10% share by 2010 from a mere 3%
share at present.

Entry of heavyweight retail players is increasing competition

• Competitive evolution of organised retail due to the entry of heavyweight players like
Croma, E Zone and Reliance Digital is stimulating the demand through exposure to
experiences.

Increasing appreciation of the Rupee

• Raw materials constituting almost 75% of the costs are mostly imported and will now be
cheaper.

Consumer Durables is one of the fastest growing industries in India.

Industry sales were US$ 4.5 billion in value, in 2006-07 and more than 7 million units in

Volume terms.
A strong growth is expected across all key segments

Projected Growth Rates

PROJECTED GROWTH RATE

Colour TVs 25-30%

Refrigerators 18-22%

Washing Machine 15-20%

Air Conditioners 32-35%

Others(including VCDs and DVDs) 35-40%

Overall, the sector is a dynamic one, with significant growth opportunities.

Factors affecting the Consumer Durables Market:

Threat of New Entrants

• Most current players are global players

• New entrants will need to invest in Brand, Technology and Distribution.

Supplier Power

• Indigenous supply base limited - most raw materials are imported

Competitive Rivalry

• Number of well established players, with new players entering

• Good technological capability

• Many untapped potential markets

Customer Power

• Multitude of brands across price points - wide variety of choice for customers

Threat of Substitutes

• Unbranded products and cheaper imports could enter the market.

Some of the Attractive Areas for Investment Include:

High End Colour TVs

• Plasma display panels and liquid crystal display TVs have registered an average growth of
more than 250% in 2006-07 and the trend is expected to continue.

Split Air-conditioners

• Split ACs have been growing at a much faster rate than window ACs - Growth of 97% in
2006-07 as compared to a 32% growth of window ACs.

Mobile Phones

• Production is expected to grow at a compound annual growth rate (CAGR) of 28.3% from
31 million units in 2006 to 107 million units in 2011

• Low mobile penetration and favourable government policies are driving mobile phone
Original Equipment Manufacturers (OEMs) to set up manufacturing facilities in India.

Distribution and Retail

• With the rural and semi-urban markets creating opportunity and an almost sedentary urban
market, the need to have a strong distribution network is crucial for the companies to remain
price competitive.

Attractive States for Investment

Key parameters used for determining attractiveness of states:

 Incentives for manufacturing sector

 Consolidation of factors, including skilled workforce
 Proximity to demand centres
 Proximity to ports for raw material imports

 Maharashtra

 Uttar Pradesh and

 Tamil Nadu

are attractive locations for investment in manufacturing consumer durables.

Several global players are well established in the Consumer Durables sector in India, with
competition from strong Indian players as well.

Some of the key players in the sector in India include:

• Samsung

• Philips

• LG

• Whirlpool

• Nokia

• Sony

About TV
Television (TV) is a widely used telecommunication medium for transmitting and receiving
moving images, either monochromatic ("black and white") or color, usually accompanied by
sound. "Television" may also refer specifically to a television set, television programming or
television transmission. The word is derived from mixed Latin and Greek roots, meaning "far
sight": Greek tele (τῆλε), far, and Latin visio, sight (from video, vis- to see, or to view in the
first person).

Commercially available since the late 1930s, the television set has become a common
communications receiver in homes, businesses and institutions, particularly as a source of
entertainment and news. Since the 1970s the availability of video cassettes, laserdiscs, DVDs
and now Blu-ray Discs, have resulted in the television set frequently being used for viewing
recorded as well as broadcast material.

Although other forms such as closed-circuit television (CCTV) are in use, the most common
usage of the medium is for broadcast television, which was modelled on the existing radio
broadcasting systems developed in the 1920s, and uses high-powered radio-frequency
transmitters to broadcast the television signal to individual TV receivers.

Broadcast TV is typically disseminated via radio transmissions on designated channels in the

54–890 megahertz frequency band. Signals are now often transmitted with stereo and/or
surround sound in many countries. Until the 2000s broadcast TV programs were generally
recorded and transmitted as an analog signal, but in recent years public and commercial
broadcasters have been progressively introducing digital television broadcasting technology.

A standard television set comprises multiple internal electronic circuits, including those for
receiving and decoding broadcast signals. A visual display device which lacks a tuner is
properly called a monitor, rather than a television. A television system may use different
technical standards such as digital television (DTV) and high-definition television (HDTV).
Television systems are also used for surveillance, industrial process control, and guiding of
weapons, in places where direct observation is difficult or dangerous.Amateur television
(ham TV or ATV) is also used for experimentation, pleasure and public service events by
amateur radio operators. Ham TV stations were on the air in many cities before commercial
TV stations came on the air.
Chapter 2: Project Feasibility Study
Feasibility of the Project:

Because of the frequent power cuts and the growing need for tv entertainment across the
world there is a immense need of a product in the market which runs on battery, even if there
is a power cut. On the other hand the World Cup and IPL 4 are on its way starting from
February. People in India would not prefer to miss even a single ball of a match and hence
they would not mind shelling out their money to buy our products which would make sure
that the entertainment doesn’t stop, further solving their electricity crisis. Thus we can expect
our products to have a great demand in the markets and as our vision statements states we
would make our products feasible and accessible.

SWOT ANALYSIS:

Strength

1. Presence of established distribution networks through Bhanshan Consumer Durables

in both urban and rural areas of Karnataka.

2. The viewers would be able to watch free 60 TV channels along with 20 radio
channels provided by Doordarshan.

3. Built in inverter facilitates working of TV without electricity.

4. Back-up system products is economical which can be afforded by masses.

5. Digi card facility which will not require separate device.

6. Well experienced and professional technicians to assemble the products.

Weaknesses

1. Demand is seasonal and high during festive season.

2. CRT screens are becoming outdated.

3. Our technology can be duplicated by other players in the market.

4. Inadequate capacity to meet the demand.

5. Battery life reduces gradually.

Opportunities

1. As per NCAER (one of the premier economic research agencies in India), the
penetration of TVs is expected to increase almost three times by FY08 as compared to
the FY99 level increasing growth prospects for our products.

2. Unexploited rural market.

3. Increase in income levels, i.e. increase in purchasing power of consumers.

4. Easy availability of finance.

5. Set up our own production plant in the coming future.

6. Subsidies and incentives can be expected from the government if the plant is set in a
rural area.
Threats

1. Poor government spending on infrastructure

2. Higher VAT and excise duties on manufacturing and distribution.

3. Strong segment players already existing around the world.

4. Cheaper products produced and exported from Singapore, China and other Asian
countries worldwide.

5. Difficult to establish brand name.

PRESENT AND FUTURE SCENARIO

Most selling are color TVs and refrigerators but growth is mostly seen in LCD TVs and
expensive electronic items. Also the growth is fast in DVD players because of the availability
of cheap software. The current size of TV industry at 13 million units of CRT TVs and for
the year 2009 a 5 percent growth in CRT based TVs and a whopping 42 percent growth in
LCD TVs

In TV segment, the 14, 20 and 21 inches segments are expected to be the key contributors to
the overall industry growth. There are more than a dozen companies operating in the white
goods segment, which is witnessing excess capacity build-up in ACs, refrigerators, TVs and
washing machines. As a result supply will continue to outstrip demand. As has been the case
in the last three to four years, prices would continue to remain depressed and margins will be
under pressure. However, this not likely to discourage the MNCs from leaving the country as
they have outlined ambitious plans for India and have made substantial investments. Indian
manufacturers may find it difficult to keep up with sustained pressure from the MNCs and
this segment could witness some consolidation in future. Our interaction with companies
indicates that MNCs (especially the Korean majors) are eyeing market share in the initial
phases as opposed to profitable growth. Most importantly TV manufacturers will be focusing
more and more on outsourcing rather than manufacturing on their own. Large companies
even now are offloading the production to original equipment manufacturers.

COMPETITORS

The entrenched position of the Indian market leaders in CTVs’ like Videocon, BPL and
Onida has been challenged by the MNCs such as LG, AIWA, Akai, Panasonic, Samsung,
Sony, Philips and Sharp; some in a perceptible way and others threatening to do so.

 LG is the market leader with 26% market share followed by Samsung and Onida.

 On the other hand, Samsung is far stronger than LG globally. The company expects
the Indian arm to contribute 10% of the total worldwide turnover by 2010.

 Videocon, another major player has managed to hold its own in the midst of the
onslaught from the Korean majors, though profits have suffered.

 Other large Indian companies in the top of the list are Mirc Electronics, BPL, Sony,
Philips, Akai, Sansui, Aiwa, and Toshiba and now Hyundai are the other foreign
brands in the market.

CHALLENGES

The main challenge is making it accessible to the target customer market. In India still a good
number of people do not have the purchasing power to buy some necessity products. So, the
main concern out here would be to carefully price the product as the TV is affordable to the
masses. The second challenge would be to tackle with the decreasing demand of CRT TVs as
LCD screen TVs are taking over the market. On an average the CRT screen TVs are expected
to increase by 4 percent in 2010 but the LCD technology way ahead by 48 percent. On the
brighter side this problem can be overcome as LCD screens are very costly and cannot be
afforded by a layman which is possible in the case of CRT screen.
WORST CASE SCENARIO AND CONTIGENCIES

 It would be difficult for our company to cope with the established billion dollar companies
like Samsung, Sony, and Toshiba etc. ABS Consumer Durables Pvt. Ltd falls under small scale
unorganized TV manufacturing sector and the growth of unorganized sector in comparison
to the private billion dollar companies is very less. The consumers in India are more devoted
to quality when it comes to electric and electronic products. And therefore these big
established and multinational companies have been making a mark when it comes to quality
selection.

Another problem which may arise is the durability of the battery. Lithium powered cells
have the limitation of loosing durability as they become old. As these batteries become old
they start losing their charge retention capacity which may reduce the performance of the
batteries. Further with the rapid and mass growth of TFT and LCD technology the market for
CRT screen TVs seem to undergo extinction. Our product being concentrated initially with
CRT technology faces a very limited growth in the Tier I and Tier II cities where people have
the purchasing power to buy LCD screen TVs which adds to their lifestyle and status.
CHAPTER 3 :MARKETING
ANALYSIS
Target Market

Initially, the plan is to target the cities where Bhanshan Consumer Durables has its branches.
It has in total 14 branches in Bangalore and Mysore. Since Mysore is easily accessible to the
rural people near Bangalore and Mysore. Bhanshan Consumer Durables through its
marketing strategies will advertise to the rural people. Our target market will be mostly the
rural population since they face a lot of power cut problems in a day and also because they
do not have the purchasing power to buy high end LCD TVs which would also consume a lot
of electricity. After a couple of years, we will expand gradually establishing our “ABS
XPerience” exclusive showrooms to different cities in the country.

Marketing Mix

Product

We have come up with ideas of inventing three products and place them in the consumer
durables market of India. The products are as follows:

1. Colour Television with built-in Inverter and Digi card.

2. Television Back-up System

3. Television Back-up System (Digi Card and DVD features included).

Colour TV with Built-In Inverter and Digi Card Components and the prices of components:

Sl. Components Price

No.

1. Picture Tube 2500

2. Cabinet with RC 630

3. Printed Circuit Board 900

4. Speakers 100

5. Degausser coil 55

6. Inverter board (12V to 220V 300W) 375

7. Battery ( U plus 12V, 7.6 AH ) 530

8. MPEG Board 380

9. SMPS Power Supply 140

10. VFD Display 90

11. Micro Switch 45

12. Screws 45

13. Wire Accessories 45

14. AV Socket ( 6 numbers ) 45

15. Carton Box with Thermocol 280

16. Monogram 20

Additional Component on demand

 LNB Dish

Features

 21 inch Flat screen

 Built in inverter to provide back-up

 Built in digi-card which will act on the lines of set top box.
Working of TV:

Battery

1. If the TV is plugged in, then the battery will get charged with the help of electricity.
2. When the power goes, the battery converts 12V DC to 230V AC and 300 Watts Output
with the help of Inverter Board. The TV runs on battery. 3.5 hours back up could be expected
if the battery is fully charged.
3. For additional back up, use ABS TV Back-up system.

Digi Card

1. Power supply 230 AC is converted to DC 5V, 8V, -12V, +12V to MPEG Card
2. Digi card works similar to a normal set top box.
3. Doordarshan facility can be used to watch 60 free channels and listen to 20 radio channels.
4. Digi card also facilitates playing of games.

Television Back-up system:

The system will provide back-up facility to the television sets in case of power cuts. The
following are the components required to manufacture the systems:
 Sl. No. Components Price

1. Two batteries ( 12V, 7.5 AH ) 1060

2. Inverter board ( 12V DC to 220V AC, 300W) 375

3. Cabinet 300

4. Screws 45

5. Wires 45

6. Sockets ( 2 numbers ) 45

7. Switch 15

8. Taggle Switch 20

9. LED ( 4 numbers ) 20

10 Solar connector 20

11 Carton Box 55

Additional Components on Demand:

 Solar Panel

Television back-up system with Digi Card and DVD features:

The system will also have the features of DVD player and built-in digi-card. The following
are the components which are required to manufacture the system:

Sl. No. Components Price

1. Two batteries ( 12V, 7.5 AH ) 1060

2. Inverter board ( 12V DC to 220V AC, 300W) 375

 3. Cabinet 300

4. Screws 45

5. Wires 45

6. Sockets ( 2 numbers ) 45

7. Switch 15

8. Taggle Switch 20

9. LED ( 4 numbers ) 20

10. DVD Loader 55

11. MPEG Board 375

12. Lens and Spindal Motor 230

13. Digi Card 380

14. Speakers 200

15. Solar Connector 20

16. VFD Display 90

17 Carton box 75

Additional Components:

 LNB Dish
 Solar Panel

Price

The company would adopt cost plus pricing strategy in which a certain amount of profit will
be added to the cost to arrive at the selling price. The following are the selling prices which
we would charge for the first year to Bhanshan consumer Durables Pvt. Ltd.
 Selling Price
Sl.
Products per unit (1st
No
year)

1 Colour Television with built-in Inverter and Digi card 7000

2 Television Back-up System 2400

3 Television Back-up System (Digi Card and DVD features included). 4000

Place

The companies office will be situated at No 118, 3rd main, 4th cross, electronic city,
Bangalore-86. We will hire 2250 sq. ft floor in the building where the assembling of all the
initial 100 TV sets will be done. The customer care will also be there in the same floor. After
the complete assembling of the TV sets are completed it would be packed and dispatched to
Bhanshan from where customers will be able to purchase our products.

Promotion

Since the marketing will be handled by Bhanshan, the promotion of our products will also be
taken care by Bhanshan. Bhanshan will advertise our brand products on billboards and
hoardings and distribute leaflets to people in and around Bangalore and Mysore.

Product Line
ABS Consumer Durables Private Limited will have the following range of products:

1. ABS Colour Television with built-in Inverter and Digi card.

2. ABS Television Back-up System

3. ABS Television Back-up System (Digi Card and DVD features included)..

USP

ABS TVs: Built in inverter and Digi-card.

ABS BACK UP SYSTEMS: Solar connector, DVD and Digi-card facilities available.
Advertisement 1

Because
Entertainment
should
not be stopped!!
Advertisement 2

THE ALL NEW ABS CONSUMER DURABLES

ABS Consumer Durables Pvt Ltd.

BHANSHAN
 STP

Segmentation

The consumer markets for our products in segmented on the following bases :

Geographic: Initially we will focus on various cities and towns of Karnataka. Later, other
major cities of South India such as Chennai, Hyderabad, Cochin, etc will also come under our
segment area.

Demographic: All age groups and people from various income levels will be covered as TV
is view by each and every person.

Behavioural: Segmented as products to be used even when there is a power cut.

Targeting

Initially, the cities and towns where Bhanshan Consumer Durables Pvt. Ltd will be targeted
ie Mysore, Bangalore, Mandya , Chamraj Nagar, Kushal Nagara, Gonakappa, Hunsur. Later
major cities of South India will also be targeted.
Positioning

In the consumer durables market of Karnataka initially with the Brand name ABS.

TV- ABS Televisions

Tagline - Born to Entertain!!!

Back-up System- ABS Television Back-up Systems

Tagline - Because Entertainment should not stop!!

CHAPTER 4-FINANCIAL ANALYSIS
Initial Investment of ABS:
Initial Investment of ABS Consumer Durables Pvt Ltd will be Rs 40,00,000 divided into
shares of 100 each.

Sources of Funds:
Both the partners Anubhav Agarwal and Utkarsh Agrawal will bring in Rs 750000 each from
their savings.

Loan of Rs 25,00,000 is raised from Union Bank of India @ 13%

Start up Expenses

SL. NO. Particulars Amount

1. Legal expenses ( Registration and Incorporation and 2,00,000
Manufacturing licence )
2. Office cum service centre advance 2,50,000
3. Furniture 2,50,000
4. Computers and Electronic tools 2,00,000
5. Purchase of Equipments 10,00,000
6. Advertisement for HR 25,000
7. Telephone deposit 1000
8. Stationery 10,000
9. Goods auto ( Tata Ace ) 2,50,000
10. Other miscellaneous expenses 14000
Total start up expenses 22,00,000

Monthly expenses :

Salary : Rs. 1,80,000

Petty expenses : Rs. 7500

Center cleaning and Maintenance : Rs. 2000

Electricity : Rs. 12000

Water : Rs. 2000

Telephone : Rs. 5000

 Pay back period:

Loan will be repaid Rs.5,00,000 every year. The loan repayment would be done in 5 years
i.e., by the year of 2015 which is explained below.

  TOTAL TOTAL INFLOW

EXPENDITURE
YEAR 2011 25,00,000 5,00,000
YEAR 2012 20,00,000 5,00,000
YEAR 2013 15,00,000 5,00,000
YEAR 2014 10,00,000 5,00,000
YEAR 2015 5,00000 5,00,000
YEAR 2016 0 5,00,000

Salary break up:

No. of Salary Annual Annual salary Annual

Designation employees monthly salary 2011 2012 salary 2013
Directors 2 48000 576000 624000 672000
General Manager 1 18000 216000 240000 264000
Electronic Engineers 14 175000 2450000 2618000 2786000

Office Receptionist 2 12000 144000 168000 192000

Driver 1 5000 60000 66000 72000
Security Guard 1 4500 54000 60000 66000
Assistants 4 16000 192000 216000 240000
TOTAL 25 278500 3692000 3992000 4292000

Depreciation: under straight line method

PARTICULARS AMOUNT PERCENTAGE 2011 2012 2013

FURNITURE 250000 12 30000 30000 30000
COMPUTERS 200000 25 50000 50000 50000
EQUIPMENTS 1000000 15 150000 150000 150000
GOODS AUTO 250000 20 50000 50000 50000
TOTAL 1700000 72 280000 280000 280000

BALANCE SHEET FOR THE YEAR

Chapter 5:Production and operation
Production and Operations:

Floor Area: 2250 square feet.

We will be hiring two floors of a building at Electronic city.. The first floor being 1500 sq ft.
will be divided into four parts. The major space will be occupied by the go down where the
raw materials and finished products will be stored. On the entrance of the office will have a
reception desk where customers and calls will be attended. Both the directors will have two
personal cabins in the same floor. The General Manager will have a desk in the go down. A
floor above with 750 sq. ft. is the place where the components will be assembled to
manufacture the products.

Location analysis:

The office cum go down is situated at No 118, 3rd main, 4th cross, electronic city, Bangalore.
The reason we chose Electronic city as the location for our corporate office is because
Bhanshan Consumer Durables, H.S.R Layout, is close to Electronic city.

Machinery used:

Electronic tools and equipments.

Ist Floor
IInd FLOOR
Chapter 6: Human resource
Organizational Chart:

DIRECTORS
1ANUBHAV AGARWAL
2. UTKARSH AGRAWAL

GENERAL
MANAGER

2 RECEPTIONISTS 14 ENGINEERS

1. Two Directors : MD and Chairman Anubhav Agarwal and Utkarsh Agrawal.

2. One General Manager

3. Two Receptionists

4. Fourteen Electronic Engineer

Miscellaneous Staff

5. One Driver

6. One Security guard

7. Four Assistants.

Total head count: 25

Training procedure and implementation:

The engineers involved in assembling our various products will be trained by Mr. Suresh
who has an experience of 18 years in the electronic and electrical field.

Management Structure:

 Sales will be handled by Anubhav.

 Finance and Strategic management will be taken care by Utkarsh Agrawal.

 The General Manager will be in charge of the various operations of the company like
purchases, production, storage and distribution.

 Receptionist 1 will attend the calls and customers. Receptionist 2 will be in charge of
the inventory and the receipts and issues of raw materials and finished products.

 The engineers will be engaged in the assembling of the components to manufacture

the products.

Salary Breakup:

Sl.No. Position Head Count Salary per Head Monthly Salary

1 Directors 2 24000 48000

2 General Manager 1 18000 18000

3 Electronic Engineers 14 12500 175000

4 Office Receptionist 2 6000 12000

5 Driver 1 5000 5000

6 Security Guard 1 4500 4500

 7 Assistants 4 4000 16000

TOTAL 25 74000 278500

Working Hours:

10 am to 7 pm- Monday to Friday

10 am to 4 pm- Saturday and Sunday

1pm to 2 pm- Lunch hour

Leave Policy

Any employee of the company will have to give a prior notice of two days before leave to the
General Manager. The General Manager will pass it further to the Directors. The leave will
be sanctioned only if it approved and signed by any one of the Directors.

Recruitment Sources:

Advertisements will be published in the leading newspaper Times of India and in two
regional kannada newspapers. Advertisements will cost us around Rs 35000.

Bibliography :

 http://www.google.co.in/images
 books.google.co.in/books
  en.wikipedia.org/wiki/Durable_good
 www.wisegeek.com
 www.ibef.org
 www.investorglossary.com

Conclusion:

TERI MAA KA BHOSHRA MAARU