A

Project Report

On

“Micro, Small & Medium Scale Enterprises”

Sub: “Seminar on Micro, Small and Medium scale Enterprises”

Submitted to

Mr. Jignesh Daraji

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)

(Charotar University of Science and Technology)
(CHARUSAT)
CHANGA

Prepared by

Nitin Chunara
Ro.No:09MBA05
4th Semester

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 • MICRO LEVEL ENTERPRISES

(1) CHAMUNDA PATANG BHANDAR:

 Introduction:
Chamunda Patang Bhandar is the micro scale enterprise. It was initiated by Mr.Shantilal
Chunara in the year of 2005, and right now handled by his grand son Hitesh Chunara. At
the time of initiation there is an investment of Rs. 200000, and currently it is Rs. 1200000.
It has business in Khambhat, Ahmadabad, Surat, Vadodara and also outside the Gujarat
like, Bangalore, Mumbai, Calcutta, Chennai and many small towns of the India. It makes
kites on the order based, and the business run through out the year. The raw materials
purchased once in a month of the June and it use during the whole year. The process of
making kites finished by passing at least eight homes.

For running the business like kites making required proper knowledge, direction, contacts,
and source of continuous finance. It requires presence of mind in particular business. As
per the Mr.Hitesh kite making is one type of seasonal business and the more kites are
sold in the month of December and first half of the January of the year. It become
beneficial if the person have the ability to handle the problems raised in this business.
There are many type of problems arise in this business, like, Financial problems,
Operational problems, marketing problems, and also many other problems.

 Operation Management
The kite making process is operated from June to ending of the December in every year.
For that process the required raw materials like, bamboo, Paper (butter, plain, khaki etc.),
thread etc. purchased once in a bulk in starting of the month June in every year. The
main source of the raw material is Bangalore. The raw materials are stored in his own
godown, and use it as par the requirement. Some times in emergency of the raw material
requirement, the nearest source is Petlad. The main problem here is to handle raw
material in monsoon.

The kite making process is started in the month of the June. The process is very
systematic and passes through at least eight houses like to cut the papers and bamboos,
joint papers into different designs, to joint the bamboos with cutting papers, and so on.
There are different labors required for different steps. The whole process is based on the
order base. They make kites as per the order given by the whole sellers. During the whole

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operational process the main problems are to manage the process, once the one step is
completed then they transfer it to the other house and so on. The problem is that some
time the whole process disturb by delaying in to the process.

For that matter they give work into different lots so it becomes easy to manage and work
fast. They provide extra charge to the labors for transferring their completed work to the
next house, so the work become faster and there is less weighting time during the
process.

 Financial Management

For starting of the process there is huge finance required for purchasing raw material, and
also required for meeting day to day cost. The labor charge depends on the size of the
kites. It becomes almost double in the nearest days of the Makarsankranti. So at that time
finance required in hand. So here the problem is to generate finance from the out side,
the majority source of finance charged higher interest rate and very difficult to get at
proper time.

For that matter they take loan from the local money lender as per the requirement and
repay it after the season over. And also fixed the labor charge at the initiation of the work.
So this can minimize the financial problems and run the business effectively.

 Marketing Management:

It has business in many cities of the Gujarat and also in India, but there is a problem of
maintaining relationship with them. In Particularly Khambhat there are many Kite makers
do their business, so it is difficult to get new big orders and also retain the existent
customers. With the low capital the marketing of the business become very difficult. The
business mainly concentrates to retain existent wholesalers by providing orders with
reasonable price.

 Conclusion:
Chamunda Patang Bhandar is Micro scale enterprise, but it is continuously growing
since it was incepted. It received finance from the local money lender and purchase raw

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materials once in a starting of the work in every year. There are many problems
associated to this business but it is very systematically handled by the owner of the
business.