PROJECT REPORT OF M/S.

SAGAR ICE FACTORY,

INTRODUCTION
M/S. SAGAR ICE FACTORY proposes to manufacture Ice Silly at The proposed unit envisages to manufacturer Ice Silly because huge demand of Ice Silly is available in the market as well as availability of technological know-how, raw material and cheap manpower. The demand potential of Ice Silly is very high in summer session & some part of rainy session. The demand potential of such items is also very huge in the area itself. The unit is a SSI unit, further the Sagar district has been declared, as an industrial Back-ward district by the central Govt. Therefore the unit will receive all sorts of facilities as applicable to a district to a district of such a category. The total cost of project has been estimated at Rs. 24.50 Lacks out of which the equity will be 9.50 Lacks & Debt will be 15.00 Lacks, consequently the debt equity Ratio comes 1.58 : 1, and moreover the unit will generate enough cash for liquidity.

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PROJECT REPORT OF M/S. SAGAR ICE FACTORY,

CONSTITUTIONS
M/S. SAGAR ICE FACTORY is a proprietorship concern formed with the objective to manufacture Ice Silly. The promoter of this unit The promoter of this unit is an young & generating person having good experience about such business practices as he is also running a unit of Cold Storage Plant at the same location by doing so, promoter has also acquired adequate trading experiences as well as conversant with technological and marketing aspect of this unit.

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PROJECT REPORT OF M/S. SAGAR ICE FACTORY,

PROJECT AT A GLANCE
1. 2. Unit Location : : M/s. SAGAR ICE FACTORY,

3. 4.

Constitution Proprietor

: :

Proprietorship Firm

4. 6. 7.

Annual Sales Realisation Major Raw Materials Utilities 1) Power 2) Water

: : : : : :

40,50,000 Water 45 H.P. From Own Sources through Tube Well 12 Person 24.50 Lacks

8. 9. 10.

Man-power Cost of Project Means of Finance i) DEBT Term Laon ii) EQUITY Promoter Capital

: : : :

15.00 Lacks 9.50 Lacks 1.58 : 1 at 51% to 17% of Capacity during first to seventh Year of operation

11. 12.

Debt Equity Ratio Break Even Point

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PROJECT REPORT OF M/S. SAGAR ICE FACTORY,

SITE DETAILS
1. Location :

2. 3. 4.

Power Water Transport Facility

: : :

Available through M.P.E.B. Available from Tube -well By Road : Location is on, hence adequate transport facility is available

5. 6. 7.

Medical Facility Post Office Bank Facility

: : :

Available Available Available

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PROJECT REPORT OF M/S. SAGAR ICE FACTORY,

SITE LOCATION, BUILDING & PLANT LAYOUT The Overall economics of the plant i.e. the capital cost and cost of operation is largely depends on the proper location of the plant. The various locational parameters applicable to the proposed unit are discussed in details in following para : AVILABILITY OF POWER : The power requirement of the proposed unit works out to around 45 H.P. including lighting. It is envisaged that the unit shall received power from the MPEB. LABOUR, HOUSING AND INFRASTUCTURE:The skilled and unskilled labour will be easily available in the area itself & surrounding. Suitable housing facilities also available in the area and hence, the factory staff will not face any housing problem. WATER: Water is sufficiently available in the location itself through own Tube - Well. TRANSPORT: As the unit is located just in side of the main road therefore, adequate transport facility exists for transportation of goods from one place to another.

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PROJECT REPORT OF M/S. SAGAR ICE FACTORY,

MARKET POTENTIALITY

Lot of market is available for Ice as its only item available in the market to get quick chilled of any items its also used in many function like to get chilled water immediately, to get freezed ice-cream on other uses which need chill. Sagar and its adjoining areas are already running many such industries with full capacity and getting very good sales in the area with increasing demand.

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PROJECT REPORT OF M/S. SAGAR ICE FACTORY,

ASSUMPTIONS
The cost of production and profitability of the project for its first seven operating years is calculated which is presented later on. The various assumptions made for the calculation of cost of production and profitability is listed below: 1. 2. The unit will work for 180 days on double shift basis in a year. The capacity utilisation has been assumed at 60% in the first year, 70% in the second year, 75% in the third year, 80% in the fourth year, 85% in the fifth year and 90% in the sixth year onwards. 3. 4. The sales prices are considered at ex-factory basis, based on prevailing market prices. The cost of raw materials has been assumed at F.O.R. work basis. Any increase in cost of raw materials will be passed over to the consumers of the finished goods. 5. 6. The details of manpower and wages are on the basis of industry practice. Employees benefits have been taken at 10% of wages and salaries, which include benefits, house rent, gratuity, paid leave etc. 7. 8. 9. Every year an increase of 10% / 5% has been assumed. The interest on term loan has been taken @ 13.50% per year. The sales expenses and sales commission have been taken @ 5% sales.

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PROJECT REPORT OF M/S. SAGAR ICE FACTORY,

BIO DATA OF THE PROPRIETOR

(A) Name and Address : : Mr. R/o.

(B)

Date of Birth

( C)

Qualification

(E)

Communication

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PROJECT REPORT OF M/S. SAGAR ICE FACTORY,

CONCLUSION AND RECOMMENDATION M/s. SAGAR ICE FACTORY, is a newly formed unit, which was established for manufacturing of Ice Silly. In our developing country such items have very good demand thus there is adequate market available. The firm is a SSI unit, further, the Sagar is declared as industrially back ward district therefore the unit will receive allsorts of facilities like income Tax & Sales Tax exemption, KVIC subsidy etc. as applicable to such category of district. The proprietor of the unit has gained the enough experience in the same line of business therefore; this is possible for him to run the unit economically & successfully as per quality standard. The other benefits occurring from the project will be in form of generation of employment opportunity in the backward area. Considering all the above facts like technical feasibility, economic & commercial viability of the project, the consultant recommend viability support from the financial, the institutions like KVIC, DIC Bank, MPRB and other govt. dept. etc.

For SUDEEP JAIN AND CO; CHARTERED ACCOUNTANTS PLACE DATE : : SAGAR 20TH February, 2007 (SUDEEP J. JAIN) PROPRIETOR M. No. 108555

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