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INDEX
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Sr. No. Title

1. Introduction
2. Project At Glance
3. Location of Unit
4. Lay out of Factory
5. Legal formalities
6. Assumptions
7. SWOT Analysis
8. Manufacturing Process
9. Advertisement
10. Financial Statement
11. Quotations

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 INTRODUCTION

Nanded is a major commercial center with a population of Six lakh in

the Marathwada region is poised for growth as far as the industrial
development is concerned. It has its own strategic importance with the
location of quite a good number of industrial in Nanded. Readymade food
products is one of the field which is growing very rapidly, the demand for
readymade foods is increasing day by day, for example papad spices,
pickles, sauces, vegetables, and other many more products in the market.
Sources of Raw material from AKOLA and NANDED Mondha
Market.
 Reasons for Choosing this Project

1. Availability of raw material.

2. Increased demand of readymade foods.
3. New establishment of Hotels in Market as Nanded is a developing
district.
4. Good opportunities for expansion in this business.
5. Need of Investment is less on compared to other industries.
 PROJECT AT GLANCE

Name of the Industry : Arya industries

Status of the Industry : Proprietership.

Name of entrepreneur : Kavita N. Kadam

Product Provided : Papad.

Place of the Business : Plot No. X-1,

MIDC at Shidako.
Post Tq. Dist. Nanded.

Address for Correspondence : Krishana Niwas

Anand Nagar,
Nanded 431602
Dist. Hingoli.

Form of Industry : SSI Unit.

Man power requirement : 6 Persons.

Sources of Finance : Own + Bank Loan.

Total Capital Investment : 25,00,000/-

Fixed Capital : 18,30,000/-

Working Capital : 6,70,000/-

Profit : 60,000/-

Break Even Point : 47.20/-

 LOCATION OF UNIT

Location of industry is MIDC, Nanded.

In Nanded all the facilities like labour, money and raw materials are
available of large scale and the rate of land is quite cheap.

Resources for selecting this vacation is as follows.

1. Labour Supply
Industry required semi skilled labours which are easily available on
cheap rate. For smoothing running of industry it is essential that the
supply of labour must be cheap as well Nanded is developing city
where there are many villages.
The village workers get job due to this industry since each industry
required to give minimum wages to the worker.

2. Market
Now a days demand for readymade product is increasing rapidly.
This is an important reason for grabbing the market share.
 Specifications of Layout

Total Plot Area 3825.00 Sqm.

Factory Building 522.87 Sqm.
Security Cabin 6.05 Sqm.
Scrap Room 29.81 Sqm.
Toilet Block 10.29 Sqm.
Total Builtup area 569.02 Sqm.
Open area 3255.89 Sqm.
 Legal Formalities

Certain legal formalities in relation to this project shall be completed.

These are:

1. Unit registration under small industry (SSI.)

2. An approval letter from DIC
3. Letter of certificate of commencement of business from the registrar
of companies under the company act, 1956.
4. No objection certificate from Environment pollution Control Dept.
5. Certificate of water supply from M.I.D.C.
6. No objection certificate from M.I.D.C.
7. Power sanction letter from MSEB.
8. Under factories act, 1956, a factory inspection permission and
certificate and safety measure in the unit.
9. Permission from labour office commissioner regarding rules of wages,
provident fund, safety etc.
10. Registration Certificate from food and drug department Maharashtra.
 Assumptions

While working the following assumptions are considered.

• Working days are 300.

• Working capital assumed for 1 month and creditors and debtors are
outstanding for 15 days.
• Working hours are 8 per day.
• Working day per month are 25 days.
• In starting year profit is to low because of high depreciation.
 SWOT ANALYSIS

Strength

1. From the study of market place the demand for papad and spices in
certain groups is high and the number of these groups in my targeted
area is high. This is definitely a strength.

2. To make papad’s at home is a tedious and the time consuming job and
in this fast no one have that much time to make it at home. So for
those, my product is a better solution.

3. The concentration of business will be on maintaining quality and

providing best possible services. This will be advantageous for
business.

Weaknesses

1. Being new in this business establishing in front of big competitors

will be a little difficult.
Opportunities

1. There is tremendous opportunities for increasing the range of product.

2. As Hingoli is being developing district, growing no of hotels and

restaurants can be new customers.

Threats

1. As simplicity of procedure and less investment any one can easily

entered in this business.
 RAW MATERIAL FOR PAPAD

1) Udad Dal

2) Moong Dal

3) Udad Flour

4) Moong Flour

5) Black Pepper

6) Miri Dal

7) Miri Fotra

8) Edible Oil

9) Papad khar

10) Salt

11) Hing

12) Red Chilly Powder

13) Garlic

14) Miri Powder

PACKING MARTIAL

1) 200 Gm. P.P.Bags

2) 250 Gm. P.P.Bags

3) 1000 Gm. P.P.Bags

 Manufacturing Process

As all the machines used in production process are automatic so once

of raw material all the process is automatically done by machine. There is
no manual work between the manufacturing process.
Graphical presentation of Manufacturing process of Papad is shown
below :-
 PRODUCTION PROCESS

Raw Material

Pre Cleaning

Destining

Sorting

Grinding

Mixing of spices material

Dough Making

3 Kg. Dough batch preparation

Papad Making

Sun Drying (Radia 1: 8)

Primary Dry Packing

Secondary Packaging

Storage
 FINISHED GOODS (PAPAD)

1) UDAD with pepper

2) UDAD with Garlic and Chlifes

3) UDAD with Red Chilles

4) Moong

(50% Udad & 50% Moong)

5) UDAD Special

6) Moong Special
 List of Raw Material Suppliers

• Ganesh Kirana Stores

Akola

• Sai Traders
Akola

• Ranisati Traders
Hingoli

• Radhika Kirana Merchant

Hingoli

• Badera Grain Merchant

Akola

• Jalaram Kirana Stores

Nanded

• Pandurang Grain Merchant

Nanded.

List of Machinery Suppliers

• Heena Udyog
Nashik

• Bharat Machinery Stores

Nashik

• Fans Bro Electors

Thane

• Sanjay Traders
Nagpur

• Packera
 Pune

ADVERTISING

Advertising is the process of communicating persuasive

information about a product to target markets by means of the
written and spoken word, and by visual material.

The modern age is the age of competition. The acute competition has
made it absolutely for manufacturer to read the customers and to find
out new buyers for their products. The demand creation has become an
important function now a day. The basic feature of advertisement is to
bring the product as well as its features and uses to the notice of the
customers. Advertising is a links between the manufacturer and
customer.
 Advertising Media

1. News Paper :

News paper being the larger mass media available in our

country. I will be placing more emphasis on news paper
advertising and it gives total coverage. Being the major media in
which a larger number of people look for the information
therefore it is useful.

2. Out Door advertisement :

We use the media for having respective effect and supplementary media

to the main advertisement. Due to its large size and excellent colour

representation the product can be attracted towards the people. In which

poster will be displayed at the important location in the target market

cities and at important corners, with the occupying pick up points like

railway stations, bus stands, etc.

3. Magazines :

It creates activity in the high society class.

 Financial Statements

UTILITIES (MONTHLY)

Electricity bill and Telephone Bill 8000

Advertisement 1000
Packaging 4000
Transportation 10000
Total Utility 23000

For one Year

Over Heads (Monthly)

Repair and Maintenance 2500

Misc. Expenses 900
3400

For One Year 40,800.

 FIXED ASSET

Land 92000
Land Developing Charges 88000
Building (include machinery foundation) 9,00,000
Plant and Machinery 6,25,000
Electric & fittings 45,000
Furniture and Fixtures and Computer 50,000
Preliminary Expenses 30,000

Total Fixed Asset 18,30,000

 Working Capital

Raw Material 2,00,000

Salary & Wages 80,000
Electricity bill and Telephone Bill 8,000
Travelling and Other Expenses 12,000
Stock of finished goods 2,45,000
Packing Material 50,000
Sundry Debtors 1,00,000
Provision for contingencies 5,000
7,00,000
(-) Sundry Creditors 30,000
Total 6,70,000

Note :- Working capital assumed to be for a period of 1 month. Sundry

debtors and creditors will be outstanding for a period at 15 days.
 COST OF PROJECT

Fixed Asset 18,30,000/-

Working capital 6,70,000/-
25,00,000/-

SALARY STRUCTURE
(MONTHLY)

Designation No. of Employees Salary / Wages

Computer Operator 1 30000
Watchman 1 2000
Employees 4 48000

Total 80,000

CAPITAL STRUCTURE
(MONTHLY)

Own Capital 380000

Term Loan from Bank (65% of fixed cost) 1170000
Financial Asst. From DIC 450000
Working capital loan from Bank 500000

Total 2500000
 COST OF PRODUCTION

Salary and Wages 80,000

Raw Material 2,00,000
Utility 2,76,000
Overhead 40,800
Depreciation Machine (25%) 1,56,250
Building (10%) 90,000
Electric Fitting (10%) 9000
Furniture (15%) 7500
Total 32,55,050

Cost of Production per year 32,55,050

 Break Even Point

Net Sales Rs. 3100000

Variable Cost

Raw Material ( 100%) 2000000

Salary (80%) 20000
Utility (80%) 248400
Other Expenses (100%) 10000
Interest on Loan (20%) 31400
Selling Exp. (10%) 6700
Total Variable Cost 2090600

Fixed Cost

Salary (20%) 5000

Utility 27600
Depreciation 258000
Selling Exp. 60300
Interest on Loan 125600
Total Fixed Cost 476500
B.E.P. = Fixed Cost
--------------------------- X 100
Sales – Variable Cost

476500
--------------------------- X 100
3100000– 2090600

476500
--------------------------- X 100
1009400

= 47.20 %
 Return on Investment

Net Profit
Return on Investment = ------------------------ x 100
Investment

= 60000
---------------------- x 100
2500000
= 2.4%
 CONCLUSION

Now a days the Readymade food fashion is very common. Every one is

taking Readymade food for the test. If the Readymade food is out of limit

then it will be injurious to health because it increases cholesterol in your

body. Due to that the various diseases like Heart attack, Blood Pressure

arising.

If will give the same taste without cholesterol then our food

demand will increase automatically. The contains of Papad is a natural

product which is made by different types of Dals and different types of

flours and they are having no negative side effect on your body.

If we will serve the different flavors of papad which the trend is

very fastly developing then we may get best output from our business

and it will increases our profit.