CONTENT

CONCEPT OF ENTREPRENEUR AND ENTREPRENEURSHIP ENTREPRENEURIAL PROCESS TYPES OF ENTREPRENEURS RISK TAKING ENTREPRENEURSHIP AND INDIA ENTREPRENEURSHIP AND INNOVATION INTRODUCTION TO THE PROJECT COMPANY PROFILE DETAILS OF STUDENTS / ENTREPRENEURS OUR PROJECT ANALYSIS BIBLIOGRAPHY 1 3 7 9 15 20 22 31 36 40 44 49

ENTREPRENEURSHIP
The Concept Of Entrepreneurship
By definition, entrepreneurship is the practise of starting a new business/venture or reviving an existing organisation. Entrepreneurial actions vary depending on the nature of business. Entrepreneurs seek funding from venture capitalists and NGOs. Usually, such investors expect higher returns on their investments. The very reason they invested in the venture of a greenhorn is because they intend to make as much as possible out of the venture. It is being increasingly recognized that entrepreneurship is the key to building and sustaining the growth of any economy. The success of Silicon Valley is a case in point. It demonstrates the success of start up ventures. Many entrepreneurs have chased their dreams and with innovative ideas, succeeded in the face of adversities. The local economy and the national economy have benefited from their ventures both in the short term and long term. In the recent times, we have seen the emergence of entrepreneurs from developing countries such as China, Ireland, Israel and India daring to pursue their innovative ideas and dreams to logical conclusion. In many cases, they succeeded in their ventures. They have created business opportunities for many others such as financiers, accountants, lawyers and restaurateurs, among others. The success of a few entrepreneurs should not blind us to the fact that for every success there are three failures. Lack of experience and direction has been the major undoing of young entrepreneurs. But, that should not hinder either the entrepreneur or the financier from starting new ventures. If they focus on the core requirements of the business, the chances of failure can be greatly reduced. We must remember that what we see today in the world of technology is the result of such entrepreneurship. Below are some of the quotes from all time famous entrepreneurs destined for people who are ready to pursue their dreams.

Henry Ford (Ford Motor Company): Whether you think you can or think you cant youre right.
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1. Gabrielle (Coco) Chanel (House of Chanel): Synthesize to success by attacking weakness. 2. Jean Paul Getty(Oil Tycoon): Test the Limits- Big Wins demand Big Risks 3. Buckminster Fuller(Dymaxion): Chase a Vision, Never Money 4. Sam Moore Walton(Wal-Mart): If it Arent Broke, Break it 5. Huge Marston Hefner(Playboy): Start with the Answer-Reality or Fantasy 6. Henry Ray(Ross) Perot(EDS): Believe and the world will follow you-Anywhere 7. Martha Kostyra Stewart(Living Omnimedia): Passionate perfection is the path to power 8. Donald Trump: To be Big, Think Big-Real Big 9. Jeffrey Bezos(Amazon.com): Avoid Instant Gratification

Entrepreneurship And Economy

Entrepreneurs contribution to the economy is of immense value. He or she is indispensable to the economic growth of the country. His or her products are valuable to the overall development of the society. People need their products. They simply cannot do without them. Ours is a consumer society now. Even in the developing countries consumerism is gaining ground. Developed countries anyway thrive on consumerism. Naturally, the role of an entrepreneur is of much significa nce in generating products valuable for the comforts and luxurious living of the people of a particular country. An economy is much dependent upon the performance level of its entrepreneur. He or she plays a vital role in the growth of the national income as well as raising the per capita income of the people.

How does an entrepreneur stimulate the economy?

1.

Investment-

Then entrepreneur has to invest in what is required for the economy. Economic

progress will much depend upon his or her contributions. Any entrepreneur will invest in products and services which the people need. His or her invest will ensure a better life for the people. More goods and services will be at their disposal. 2. EmploymentAn entrepreneur by setting up various businesses and establishments is generating

employment in the country. People need jobs. This is a major contribution that an employer can make to provide income to an employee who can meet his or her needs.
3.

Diversity in products and services- An entrepreneur can provide various types of goods and
services to the consumer. The latter has much to choose from. A consumer after all would like to
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have a good bargain, and if his or her choices are more than he or she can get these products or services at reasonable rates. Also personal desires are met if there are products and services to choose from. A person may like a particular type of tie and he can perhaps locate it in his local market. His desire to purchase a tie of his choice is thus met.
4.

International trade- An entrepreneur promotes international trade by selling his or her products abroad.
Any entrepreneur would like a wider market. If there are more consumers to purchase his or her products, the higher his profits.

5.

Contributes to gross national product- An entrepreneur makes much contribution to the national
exchequer and to the national economy as a whole. The GNP of the country is calculated based upon the total number of products and services available in a respective country. The more products and s ervices available the higher the GNP. It indicates the economy prosperity of the country.

The Entrepreneurial Process

This section examines two broad dimension of the entrepreneurial process: opportunity recognition and information search, and resource acquisition and business strategies.

Opportunity Recognition and Information Search

While opportunity recognition (Kirzner, 1973) and information search are often considered to be the first critical steps in the entrepreneurial process (Christensen, Madsen and Peterson, 1994; Shane and Venkataraman, 2000), limited empirical research has been conducted surrounding this process. Venkataraman (1997) argues that one of the most neglected questions in entrepreneurship research is where opportunities come from. Why, When and How certain individuals exploit opportunities appears to be a function of the joint characteristics of the opportunity and the nature of the individual (Shane and Venkataraman, 2000). Venkataraman (1997) highlighted three main areas of different between individuals that may help us understand why certain individuals recognize opportunities while do not: knowledge (and information) differences; cognitive differences; and behavioural differences. The ability to make the connection between specific knowledge and a commercial opportunity requires a set of skills, aptitudes, insights and circumstances that are neither uniformly nor widely distributed (Venkataraman, 1997). The extent to which individuals recognize opportunities and search for relevant information can depend on the make -up of the various dimensions / aspects of an individuals human capital. Kirzner (1973) asserted that the entrepreneur identifies opportunities by being alert to and noticing opportunities that the market presents. The process of search and

opportunity recognition can be influenced by the cognitive behaviours of entrepreneurs. Search behaviour can be bounded by the decision-makers knowledge of how to process information as well as the ability to gather an appropriate amount of information (Woo, Folta, and Cooper, 1992). Entrepreneurs with limited experience may use simplified decision models to guide their search, while the opposite may be the case with experienced entrepreneur (Gaglio, 1997). Experience may not Strictly enhance opportunity recognition ability. Habitual entrepreneurs associated with liabilities (e.g., over-confidence, subject to blind spots, illusion of control, etc.), resulting from their prior business ownership experience, may also exhibit limited and narrow information search. Cooper, Folta and Woo (1995) found, however, that novice entrepreneurs sought more information than entrepreneurs with more entrepreneurial experience, but they searched less in unfamiliar surroundings. Further, entrepreneurs having high levels of confidence sought less information. Some experienced entrepreneurs may simply have had a Fortuitous prior business ownership experience and may subsequently have little idea about identifying additional profitable projects. Over time, however habitual entrepreneurs are likely to acquire information and contacts that provides them with a flow of information relating to opportunities. Consequently, habitual entrepreneurs may need to be less proactive compared with novice entrepreneurs. Having earned a reputation as a successful entrepreneur, financiers, advisers, other entrepreneurs and business contacts may send proposals to previously successful habitual entrepreneurs. The ability of entrepreneurs to learn from previous business ownership experiences can influence the quantity and quality of information subsequently collected (Gaglio,1997). Previous entrepreneurial experience may provide a framework pr mental schema for processing information. In addition, it allows informed and experienced entrepreneurs to identify and take advantage of disequilibrium profit opportunities (Kaish and Gilad, 1991). This entrepreneurial learning goes beyond acquiring new information by connecting and making inferences from various pieces of information that have not previously been connected. These inferences build from individual history and experience and often represent out-of-the-box thinking. Heuristics may be crucial to making these new links and interpretations. Some people habitually activate their mental schema for processing information and can notice it in the midst of an otherwise overwhelming amount of stimuli (Gaglio, 1997). This may explain why the pursuit of one set of ideas and opportunities invariably leads entrepreneurs to additional innovative opportunities that had not been previously recognized (Ronstadt, 1988). McGrath (1999) has argued that entrepreneurs have access to numerous
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shadow options (i.e., opportunities that have not been recognized). Over time, valuable information regarding the real option can be made available or suitable venture opportunities emerge. Although McGrath focused on the ability to learn from entrepreneurial failure, shadow options may also arise with more successful entrepreneurs. There are limited evidence surroundings the search behaviour of habitual entrepreneurs. Most notably, it is not clear whether ideas, projects and deals go to habitual entrepreneurs or whether habitual entrepreneurs initiate them. Case studies of habitual entrepreneurs have revealed that habitual start-up entrepreneurs were likely to be more proactive than habitual buy-out / buy-in entrepreneurs with regard to the search processes they adopted in subsequent ventures (Wright Robbie and Ennew, 1997; Ucbasaram, Wright, Robbie and Westhrad, 1999). Low and MacMillan (1988) suggested that networks are an important aspect of the context and process of entrepreneurship. Subsequent studies have found networking alloes entrepreneurs to enlarge their knowledge of opportunities. To gain access to critical resources and to deal with business obstacles (Johannisson, Alexanderson, Nowicki, and Senneseth, 1994; Sapienza, Manigart and vermeir 1996; Hills, Lumpkin and Singh, 1997; Floyd and Wooidridge. 1999). Business own ed by teams of partners generally have wider social and business networks (Cooper, Gimeno-Gascon and Woo, 1994) and more diversified skill and competences bases to draw upon (Slevin,and Covin,1992). The creation of formal networks in the form of innovative milieu (Such as a Science park) (Felsenstein, 1994; Westhead and Batstone,1999) can provide a context for entrepreneurs (and their firms) to acquire knowledge and experience (Thrift,1996). However it is not clear how effective these sponsored networks are in quipping entrepreneurs and firms with the ability to select effective strategies to secure scarce resources outside a sponsored environment. Additional research is therefore warranted focusing upon this theme (Flynn,!993; Westhead and Storey, 1995 ; westhead and Bats tone,1999). Once the opportunity has been identified and information relevant to the venture has been obtained, the next step for the entrepreneurs(or the team of entrepreneurs) is to acquire new resources or effectively manage existing resources, in order to exploit the opportunity. Research developments in these aspects of the entrepreneurial processes are discussed in the following section.

Resources Acquisition and Business Strategies

Recent studies have attempted to examine entrepreneurs with respect to their resources endowments and resource acquisition strategies. The owner(s) of a business is likely to be its key resource (Storey, 1994; Westhead, 1995; Bate, 1998). Further, the owner(s) ma y be the key constraint on resource acquisition (Brown and Kirchhoff, 1997). Resources and assets (both tangible and intangible) are accumulated throughout entrepreneurial careers (Katz, 1994; Teece, Pisano and Shuen, 1997) , foe example, human, social, physical, financial and organizational capital (Cooper, Gimeno-Gascon and Woo, 1994; Greene and Brown, 1997; Hart, Greene and Brush, 1997). Numerous studies have attempted to detect a link between the human capital of entrepreneurs and the probability of venture failure, survival and / or success (Mosakowski, 1993; Chandler and Hanks, 1994; Westhead, 1995; Gimeno, Folta, Cooper and Woo, 1997; Bates, 1998). Chandler and Hanks (1994) found that ventures with higher levels and broader verities of resources tended to grow faster and were larger in size. Others studies have examined how the relative importance of bundles of resources varies with the age of the ventures (Brush, Greene, Hart and Edelman, 1997; Chandler and Hanks, 1998). Although resources are crucial to the performance of a venture, resources alone are not sufficient to achieve a sustainable competitive advantage. It follows that entrepreneurs must develop skills and select competitive strategies to make better use of the resources that are accessible to them. Based on the resource-based theory of the firm, Chandler and Hanks (1994) suggested that business should select their strategies to generate rents based upon resource capabilities. They argue that when there is a fit between the available resources and the ventures competitive strategies, firm performance should be enhanced. Additional firm level studies are required to explore the relationship between entrepreneurship resources (and their acquisition and management) and the competitive strategies pursued by organisations (Zahra, Jennings and Kuratko, 1999).

The entrepreneurial process may lead to numerous outcomes. Most studies exploring the outcomes of entrepreneurship have focussed on firm-level survival and / or financial performance. Focusing on firm-level aspects, while important, may be insufficient to understand fully the outcomes associated with the entrepreneurial phenomenon. It is possible to identify two additional dimensions of the entrepreneurial outcome: performance of the entrepreneur and firm exit issues, It is crucial, therefore, that any study exploring the outcome(s) of the entrepreneurial process is clear on the unit of analysis is being used.
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Types Of Entrepreneurs
Studies have made a distinction between nascent (i.e., individuals considering the establishment of new business), novice ( i.e. ,individuals with no prior business ownership experience as a business founder, an inheritor or a purchaser of a business), habitual (i.e., individuals with prior business ownership experience), serial (i.e. individuals who have sold / closed their original business but at a later date have inherited, established and / or purchased another business), and portfolio

entrepreneurs (i.e., individuals who have retained their original business bur a later date have inherited, established and / or purchased another business) (Westhead and Wright, 1998a; Wright, Westhead and Sohl, 1998; Delmar and Davidsson, 2000). NEED FOR PROMOTION OF ENTREPRENEURSHIP AND SMALL BUSINESS Before we proceed to the need for promotion of small business (small scale industries), it is necessary to have a clear distinction between small, medium and large scale industries. Scale of Industry: On the basis of the capital invested and number of workers employed, the industries may be classified into three categories. Small scale industry, medium scale industry and large scale industry.
Industries

Ancillaries Small Scale Medium Scale Large Scale

Modern Small Scale

Tiny Sector

Cottage Industries

Household Industries

Handloom

Khadi

Village Industries

Handicraft

Agricultural

Coir

Fig.4. Scale of Industry

Industries having an investment in plant and machinery not exceeding Rs. 60 lakhs are called as small scale industries. Within a small scale sector there is special category known as the tiny sector. An industrial undertaking with an investment in fixed assets not exceeding the value of Rs. 5 lakh and located in village or a town with a population of less than 50,000 is regarded as a tiny unit. Ancillary industry is also included in the category of small scale unit. An acillary unit is an undertaking having an investment in fixed assets of upto 75 lakhs and engaged in the manufacture of parts, components, subassemblies, tooling or rendering of service to other industries. Generally 50 percent of the total output of such industries being meant for other industries. The classification of industries into small scale and medium scale is a relative concept. There may not be perfect line of demarcation between these types. However, an undertaking with a fixed capital investments of up to Rs. 5 crores are normally exempted from licensing, thus the industries with a fixed capital investments over 50 lakhs and upto 5 crores may be regarded as medium scale industries. The industries with fixed capital investment over 5 crores are the large scale industries. Fig. 43.4 shows the classification of industries on the basis of capital investments. Need for promotion of entrepreneurship and small scale industries. Entrepreneurship promotes small business i.e. small scale industries. The small scale industries playa dynamic role in accelerating thy rate of industrial growth and economic prosperity of the developing nation. This is because they provide immediate employment opportunities. The small scale industries are labour intensive and have a higher labour-capital ratio. They require comparatively less capital, have a lesser gestation period and can be easily set up in rural areas and backward areas. They need relatively smaller markets to be economical, offer method of ensuring more equitable distribution of national income. Besides, they possess locational flexibility which serves as an effective instrument for achieving a wide dispersal of industries. Further, small scale unit serves as a means of bringing forth indigenous entrepreneurship and saving lying unutilised (dormant), particularly in semi urban and rural areas. The small scale industries has played-a significant role in achieving the following objectives. 1. Employment generation. 2. To meet increased demand. 3. More equitable distribution of national income. 4. Balanced economic development. 5. Decentralization.
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6. Better utilisation of resources.

RISK TAKING (WHAT IS RISK SITUATION) In operating a business capital is risked, it means its expenditure can result in loss. Risk refers to the uncertainty which exists in the business because of some unfavorable or undesirable events. Every project envolves certain amount of risk and uncertainty. Each variable entering the project evaluation could be the source of uncertainty because it is not possible to predict or anticipate perfectly the probable changes that may take place in respect of these variables. Risk situation occurs when the actual result deviates from the estimated result. A risk situation generally occurs when an entrepreneur is required to make a choice between two or more alternatives whose possible outcomes are not known and only a limited information is available for their evaluation in advance. A risk situation involves potential gain or potential loss. The greater the possible loss, the greater the risk involved. As the size of business expands, the problems and development require an entrepreneur not to be afraid of making decision. There are two types of uncertainties which could be the cause of risk situation1. Uncertainties relating to project itself and 2. Uncertainties relating to the environment in which it operates.

Uncertainty usually arises because it is impossible to predict the different variables and consequently the magnitude of benefits and costs that may occur. The important causes of uncertainty are: 1. Changes in the price of the materials, tools, components etc. 2. Changes in the price of finished products of the firm. 3. Change in technology or improper selection of technology which may involve the replacement of old machines, equipments processes by new modem machines, equipments and processes etc. 4. False estimation of rated capacity. 5. Length of construction and running in periods. 6. Changes in the environment like product obsolescence due to change in fashion or taste or consumers preference. 7. Changes in environment because of the introduction of new substitute product by the competitors.
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8. Non-availability of technically qualified persons. The extent of expertise is limited and finding people to handle new jobs is extremely difficult. Types of Risk Takers: 1. Low risk taker 2. Moderate risk taker 3. High risk taker. The type of risk taker the person is depends to some degree on the extent to which he is influenced by other people, his past experiments, present estimation and his expectation for future, within a business there is a need to have risk takers of various types. At worker level the enterprise needs people who are low risk takers so that they can do the routine things and bring organisational stability. At the middle management level there is more room for risk taking. Middle manager should have some freedom to be innovative and make minor modification in procedures and functions. These persons may be considered as moderate risk takers. Such risks are not insurable, if they materialise the entrepreneur has to bear the loss himself. Entrepreneurs, at the top of the organisation structure, have t!-le capacity to formulate creative ideas. To be successful in business, entrepreneurs must take risk to make the ideas become reality. Entrepreneurs are moderate risk takers. They enjoy the excitement of

challenge but they do not gambit. Entrepreneurs avoid low risk situations because there is a lack of challenge and avoid high risk situations because they want to succeed. They like achievable challenges. They do not tend to like situations where the outcome of a pursuit depends upon a chance and not on their efforts. They like to influence the outcome of their pursuit by more efforts and by having a sense of accomplishment. Entrepreneurs get great satisfaction in accomplishing difficult but realistic tasks by applying their own skills. Low risk takers are afraid to take more risks because they want to be safe and avoid failure. Such persons cannot succeed in business. Their earnings will be limited. Whereas high risk takers arc just like gamblers they may enjoy a very large benefit or suffer from a heavy loss and may g9 on the verge of bankruptcy. As the size of the business expands, PIe problems and opportunities become more numerous and complex. Business growth and development require an entrepreneur not to be afraid of making decision and taking certain risks. He should take calculate risk and not afraid of failure. Sometimes a new product actually entering the market has a very short life span due to market failures.
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This also gives rise to risk situation. The reasons for failure of the new product may be listed as : 1. Failure to recognize rapidly changing market-environment. 2. Absence of forma) product planning and development procedure. 3. Failure of the product to fulfill customers' needs due to ignorance about attitudes of customers towards new products. 4. Technical or production problems. 5. Higher cost than estimated. 6. Inadequate market analysis and market appraisal. 7. Bad timing of introduction of new product. 8. Product problems and defects. 9. Failure to estimate strength of competition. 10. Too many new products entering the market. Evaluation of Personal Risk: Different persons evaluate the risk differently. A man with relevant knowledge skills and informations and having successful experience evaluates the risk by considering all the constraints, difficulties likely to arise in future. He accepts the challenge with greater degree of self confidence. Also, a person utilizing feedback for corrective measure can reduce his risk and has greater chances of success. An entrepreneur who enters into business with a high level of self-confidence is able to evaluate his competencies and capabilities in a realistic manner. He can set realistic and challenging goals. He is confident of achieving these goals. For evaluating personal risk the entrepreneur has to scan the entire chain of & activitiesresearch and development, design, production, marketing, sales and post sales service, government policies etc. and arrive at conclusion which will form the basics of the operations for his project. It is also necessary that the entrepreneur should consider his own strength and weaknesses, the facilitating factors, and constraints in the environment and the resources needed to accomplish his task. An entrepreneur should exhibit positive and optimistic attitude towards the possible risk situations and approach his task with a hope of success and not with a fear of failure. It is very difficult to evaluate the risk perfectly due to changing environmental and rapid technological development. However, the positive outlook develops a drive in the entrepreneur to search for creative ideas i.e. to attempt a new thing and innovate. He is able to visualise the hidden opportunities in the environment and translate them into business realities.

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MARKET SURVEY Introduction: During the planning stage of setting up an enterprise, the entrepreneur should carry out a detailed market survey in order to gather information on the following points: I. Raw material required, its sources of supply. 2. Machinery and equipment required for manufacturing the proposed product. 3. Existing competitors in the market for the same product. 4. Type of customers in the market. 5. Type financial and manpower requirements of the project etc,

Raw material information: The following information about the raw material should be gathered: I. List of major manufacturers/supplies of the raw materials needed. 2. Identification of materials and supplies to be imported. 3. Government policies and regulations regarding import of requisite raw materials. 4. Time required for getting the raw materials after ordering, terms of supply, payment etc. 5. Trend of prices and availability in the first 2-3 years. 6. Possibility of getting quota of scarce raw materials through state Directorate of Industries /DIC/Small Industries Development Corporations. 7. Percentage share of raw material cost in the cost of the finished product etc. Machinery and Equipment Information: 1. List of manufacturers/suppliers of the machinery needed for the project. 2. Capacities and specifications of different brands of machineries available in the market. 3. Price of each machine/equipment and their accessories. 4. Availability of spare Parts of machinery with accessible distance. 5. Guarantee/ Warranty of performance given by manufacturers/ suppliers. 6. Normal repair and maintenance cost per year. 7. Terms and conditions of supply of machinery (ordering, payment, advance and delivery etc.). 8. Place of inspection before delivery of machine/equipment. 9. Requirement of special type of transport and handling. 10. 11. Floor space required for the machine. Quality standards and output of each machine.
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Market Information: An entrepreneur should collect market information from the existing manufacturers of the proposed product, their share in the market and the existing demand for the proposed product. The following information may be collected from the market. Existing Manufacturers (Competitors) 1. General factory layout and floor space occupied by the units of various sizes. 2. Range of products of the competitors, installed capacity and utilised capacity of their unit. 3. Price of the competitors product. 4. Future expansion plans of existing manufacturers. 5. Market area of existing competitors. 6. Technical skills, marketing skills, finance and other resources required to run the business successfully. 7. Latest technology available and that used by the competitors. Traders/Suppliers 1. Existing traders supplying the proposed product, their terms of business and commission etc. 2. Market area and annual turnover of the suppliers. 3. Willingness of the traders to supply products of the concerned entrepreneur. 4. Level of stock maintained by the traders, their problems, if any, for stocking the goods. 5. Comments of the traders on business conditions and future of the proposed products. 6. Possibility of increased demand in future. Consumers/Customers I. The annual consumption and the requirement of the customers. 2. Present sources of supply for the proposed product. 3. Consumers preference in terms of models, grades, aesthetic aspects etc. for the proposed products. 4. Customers reactions, suggestions, complaints etc. about the present product. . 5. Consumption pattern of the proposed products. 6. Technological changes necessary to improve the quality of the products and its effect on demand. 7. Type of consumption pattern, fluctuating, regular, intermittent etc.

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Finance Information 1. Approximate financial requirements of proposed unit. 2. Prevailing rate of interest on term loans and working capital loan advanced to small scale industries by various agencies. 3. Financial incentives available. 4. Fixed and working capital requirements for the proposed unit. 5. Self contribution of the entrepreneur. 6. Sources of term loan and working capital loan. General Information 1. Requirement of personnel of different categories and skills. 2. Availability of adequate labour supply near the proposed site. 3. Prevailing wages and salary rates for different categories of personnel. 4. Possibility of getting the shed in industrial area and prevailing rents. 5. Possibility of acquiring an industrial plot in the area selected for the proposed product. 6. Cost of acquiring industrial plot/shed. 7. Availability of water, power and other utilities needed for the manufacture of the product. 8. Industrial waste disposal problems etc. This information will help the potential entrepreneur for the preparation of techno economic feasibility report. The entrepreneur should therefore prepare his market survey and collect the information depending upon the nature of product, size of the product and competition involved.

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ENTREPRENEURSHIP AND INDIA

Entrepreneurship is a critical element in the growth of an economy. It is estimated that there are about 20 million entrepreneurs in the US. India ranked second in total Entrepreneurship Activity (TEA) according to the Global Entrepreneurship Monitor Report for the year 2002. Subsequently, India slipped in TEA rankings. For its size India has lower number of start-up entrepreneurs. In spite of the shortcomings, it ranked ninth in the survey of entrepreneurial countries by Global Entrepreneurship Monitor (GEM). India ranks the highest among a group of countries in necessity-based entrepreneurship, which is associated with developing countries. Conversely, it ranks fifth from bottom in opportunity-based entrepreneurship. Liberalization of economy started by the PV Narasimha Rao government in 1991 and the Information Technology boom of the mid and late 90s have ushered in tremendous changes and set for entrepreneurship is substantial. However, the society and government have not been encouraging towards entrepreneurship in India. One of the major hindrances faced by the Indian entrepreneur is that of capital. It is worth nothing that there is greater willingness among people to invest capital in enterprises that is already established than in start-ups. The number of venture capitalists or angel investors in India is very low. Another factor that has been hindering entrepreneurship in India is the lack of mentors- very few success stories which could inspire youngsters to become entrepreneurs. By and large, the India society is averse to risk. People normally look for long-term and stable employment, such as government and public sector jobs. There is an urgent need to overhaul the physical infrastructure and lack of government support is major hindering entrepreneurship in India. There are other factors that have been affecting entrepreneurship in India. The majority of young people coming out of college are inclined towards the IT sector, starving other sectors of critical talent. Most of the talent available in the country is considered to be mediocre and technical talent is scarce. Another factor weighing against entrepreneurship in India is that it is not perceived to be socially glamorous, though the concept is getting accepted slowly. Indias economy has been growing at a scorching pace. Today, its economy ranks above that of France, Italy and UK. Its GDP is the third largest in Asia. Among emerging nations, it has the second largest economy. The liberalization of the economy in the 1990s has enabled a huge number of

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people to become entrepreneurs. It is to Indias credit that its corporate and legal systems have been operating with greater efficiency. Government needs to make efforts and encourage entrepreneurship by providing training and also facilities, especially in the rural areas. With a burgeoning middle class, India has a huge potential, which, if tapped, can be a vast market for products and services. Entrepreneurs can prosper by catering to the requirements of this segment. India, with its abundant pool of talent in the IT domain, management, manufacturing and pharmaceuticals, has become the choicest destination for outsourcing of services from all over the world. The scene for Indian entrepreneur is ideal. If he can seize the current opportunity, he can succeed not only in India but also globally. The Indian government has recently commissioned Entrepreneurship Development Institute of India (EDI) to set up Entrepreneurship Development Centres (EDCs) in Cambodia, Laos, Myanmar and Vietnam (CLMV) countries as a mark of Indias commitment to the initiative of ASEAN integration. Vice-president Hamid Ansari recently inaugurated the Myanmar-India Entrepreneurship Development Centre (MIEDC), Myanmars ministry of education at Yangon. Centres in the other countries have already started functioning. EDI, Gujarat, a national resource institution, focuses on entrepreneurship education, training and research. Referring to EDIs various business-oriented and job-oriented courses, Manoj Mishra, an associate senior faculty from EDI explains: Earlier, when entrepreneurs encountered problems in their business, they blamed it on environment, polices red-tapism, faulty systems and so on. Entrepreneurs rarely assessed their own competency and knowledge. Fortunately, mindsets have broadened and entrepreneurs place major emphasis on their level of understanding, entrepreneurial know-how and traits in dealing with issues. While this is what a business-oriented course looks at, a job-oriented course aims to build competency and skills required to become a manager rather than an employer. In view of EDIs expertise in entrepreneurship, the University Grants Commission (UGC) had assigned it with the task of developing a curriculum. The Gujarat Textbook Board assigned the task of developing textbook in entrepreneurship for classes XI and XII which has been done, informed Mishra.

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Niche Programmes
EDI has created six centres and is offering various programmes like postgraduate diploma in management- business entrepreneurship (PGDM-BE), and open learning diploma in business entrepreneurship to mention a few. Similarly, it is providing various international programmes like inter-regional centre for entrepreneurship and investment training (IRC) and institutionalisation of ED process in CLMV countries. Elaborating on the diploma in management of NGOs, he says:The module has been developed in such a way that students are imparted inputs on the managerial domain along with the perspective domain. EDI offer course for working professionals too. It conducts entrepreneurship development programmes that aim at increasing the competency level of professionals so that they can accomplish more within the same resources. Another programme is the one-year open learning programme in entrepreneurship (distance learning), which targets those who cant make time for classroom entrepreneurship teaching. For entrepreneurs, EDI has conducted growth-cum-counselling programmes and performance improvement programmes to enhance the business prospects of existing enterprises. Also, their cluster development programmes aim to increase competitiveness of enterprises within cluster. The progress of Indian economic development from 1947 to the present provides further evidence that individual that does respond to incentives in their pursuit of self-survival and accumulation of wealth. Further, the nature of this response depends on the economic climate, particularly the role of the government. Indias economy struggled as long as it was based in a system of government regulation with little interaction with economic forces outside the country. The economic reforms of the early 1990s set the stage for substantial improvements in the Indian economy. As was stated earlier, Indias economy grew at an average of 6.3 percent from 1992-2001 (Acharya, 2001). Further, its rate of inflation and fiscal deficit both decreased substantially (Bhalla, 2000). Improved exchange rate management led to improved financing of the current account deficit and higher foreign exchange reserves. Finally, Indias GDP and per capita income both increased substantially from 1990-1991 to 1998-1999. India can do more, however, to further advance its economic development. Indeed, one of the more recent microeconomic approaches efforts have been found to generate a wide range of economic benefits, including new business, new jobs, innovative products and services, and increased wealth for future community investment (Kayne,1990). The

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following narrative explains in considerable depth how entrepreneurial activities have succeeded in several countries and how it can now be used to further Indias economic development. Given Indias economic progress in recent years the country may now be ready for the implementation of microeconomic polices that will foster entrepreneurial activities. Fortunately, in addition to the macroeconomic reforms mentioned earlier, India has taken other steps to lay the foundation for the type of economic growth that can be fostered only by entrepreneurial activities and appropriate economic policies that reflect individual rights and responsibilities. For example, in recent years India has made several important structural changes, including the construction of telecommunication networks and the implementation of a nationwide road-construction programme (Solomon, 2003). Further, several thousand new economy business-the types of business especially suited for entrepreneurship efforts-

were started in 2003 alone. However, more than just opportunities should lead India to consider entrepreneurial activities as a way to economic growth. At least one major threat, a growing population, also should motivate it to consider entrepreneurial effort as an economic policy. Specifically, the countrys population is expected to increase by 110 to 130 million people over the next 10 years, with approximately 80 to 100 million of those new citizens seeking jobs that do not currently exist (Gupta, 2001). Entrepreneurial efforts can help to provide those jobs. Recent research on entrepreneurship around the world indicates that the cultural characteristics that can foster successful entrepreneurial activities and its related economic benefits are a strong education base, the necessary financial support, opportunities for networking among entrepreneurs, and a well-defined, minimal role for the government. In case of India specifically, an emphasis upon entrepreneurial activities in the information technology sector also seems relevant. The role that the government can play in encouragement of entrepreneurial efforts has already been noted in the above narrative. Clearly, the government can develop policies concerning education and financial support. Government policies on taxing and regulation of business also are relevant here, given that such polices can either promote or hamper entrepreneurial efforts. And the government can certainly help to provide networking opportunities among new and experienced entrepreneurs. India can generate additional economic growth by fostering entrepreneurial activities within its borders, particularly within its burgeoning middle class. Not only has entrepreneurship

19

been found to yield significant economic benefits in a wide variety of nations, but India specially has reached a point in its development where it can achieve similar results through entrepreneurial

efforts. Among other things, India is poised to generate new business start-ups in the high technology area that can help it become a major competitor in the world economy. For example, it has a strong education base suited to entrepreneurial activities, increased inflows of foreign capital aimed at its growing at its growing information technology services sector, and a host of successful new business start-ups. To pursue further the entrepreneurial approach to economic growth, India must now provide opportunities for [1] Education directed specifically at developing entrepreneurial skills [2] Financing of entrepreneurial efforts [3] Networking among potential entrepreneurs and their experienced counterparts Obviously, the government can play a substantial role in helping to provide these types of opportunities. It can also provide the appropriate tax and regulatory policies and help the citizens of India to understand the link between entrepreneurial efforts and economic prosperity. However, its role overall must be minimized so that influence of the free market and individual self-interest can be fully realized. Only time will if increased entrepreneurial activities in India will actually yield the economic benefits found in so many other nations of the world. Should India decide to pursue that avenue of economic development, then future research needs to examine the results of Indias entrepreneurial programme. Perhaps more important, that research also needs to determine how Indias success in entrepreneurial efforts might differ from those pursued in developed nations.

20

ENTREPRENEURSHIP AND INNOVATION

Entrepreneurship is the practice of starting new organizations or revitalization mature organizations, particularly new business generally in response to identified opportunities. Entrepreneurial activities are substantially different depending on the type of organization that is being started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertaking creating many job opportunities. Lately more holistic conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, political entrepreneurship, or knowledge entrepreneurship emerged. A convenient definition of innovation from an organization perspective is given by Luecke and Katz (2003), who wrote: Innovation... is generally understood as the successful introduction of knowledge in original, relevant, valued new products, processes, or services. Innovation typically involves creativity, but is not identical to it: innovation involves acting on the creative ideas to make some specific and tangible difference in the domain in which the innovation occurs. For example, Amabile et al. (1996) propose: All innovation begins with creative ideas... We define innovation as the successful implementation of creative ideas within an organization. In this view, creativity by individuals and teams is a starting point for innovation; the first is necessary but not sufficient condition for the second. For innovation to occur, something more than the generation of a creative idea or insight is required: the insight must be put into action to make a genuine difference, resulting for example in new or altered business processes within the organization, or changes in the products and services provided. A further characterization of innovation is as an organizational or management process. For example, Davila et al. (2006), write: Innovation. Like many business functions, is a management process that requires specific tools, rules, and discipline From this point of view the emphasis is moved from the introduction of specific novel and useful ideas to the general organizational processes and procedures for generating, considering, and acting on such insights leading to significant organizational improvements in terms of improved or new

business products, services, or internal processes. Through these varieties of viewpoints, creativity is typically seen as the basis for innovation, and innovation as the successful implementation of creative ideas within an organization (c.f. Amabile et al. 1996 p.1155). From this point of view, creativity may be displayed by individuals, but innovation occurs in the organization context only.

21

The conceptual relationship between entrepreneurship and innovation has been discussed in the literature for many years. The economics of innovation, in particular, have attracted increased attention in recent years (Grupp, 2001; Arora, Fosfuri, & Gambardella, 2002; Stoneman, 1995). Sundbo (1998) summarised the basic theories of the economics of innovation: (i) the entrepreneur paradigm; (ii) the technology-economics paradigm; and (iii) the strategic paradigm. According to this paradigm, only a person who founds a new company on the basis of a new idea can be called an entrepreneur. Entrepreneurship is viewed as a creative act and an innovation. Entrepreneurship is about creating something that did not previously exist. The creation adds value to the individual and the community, and is based upon perceiving and capturing an opportunity (Johnson, 2001). Bygrave and Hofer (in Legge & Hindle, 1997) regarded entrepreneurship as a change of state, a dynamic process, and a unique event, Legge and Hindle (1997) believed that people who lead teams and organization to introduce innovations are entrepreneurs. Entrepreneurs seek opportunities, and innovations provide the instrument by which they might succeed. Corporate entrepreneurship often refers to the introduction of a new idea, new products, a new organizational structure, a new production process, or the establishment of a new organization by (or within) an existing organization.

22

INTRODUCTION TO THE PROJECT FABRICATION

Fabrication as an industrial term refers to building metal structures by cutting, bending, and assembling. The cutting part of fabrication is via sawing, shearing, or chiselling (all with manual and powered variants); torching with handheld torches (such as oxy-fuel torches or plasma torches); and via CNC cutters (using a laser, torch, or water jet). The bending is via hammering (manual or powered) or via press brakes and similar tools. The assembling (joining of the pieces) is via welding, binding with adhesives, riveting, threaded fasteners, or even yet more bending in the form of a crimped seam. Structural steel and sheet metal are the usual starting materials for fabrication, along with the welding wire, flux, and fasteners that will join the cut pieces. As with other manufacturing processes, both human labour and automation are commonly used. The product resulting from (the process of) fabrication may be called a fabrication. Shops that specialize in this type of metal work are called fabrication shops. The end products of other common types of metalworking, such as machining, metal stamping, forging, and casting, may be similar in shape and function, but those processes are not classified as fabrication. Fabrication comprises or overlaps with various metalworking specialties:
y

Fabrication shops and machine shops have overlapping capabilities, but fabrication shops generally concentrate on metal preparation and assembly as described above. By comparison, machine shops also cut metal, but they are more concerned with the machining of parts on machine tools. Firms that encompass both fabrication work and machining are also common.

Blacksmithing has always involved fabrication, although it was not always called by that name.

The products produced by welders, which are often referred to as weldments, are an example of fabrication.

Boilermakers originally specialized in boilers, leading to their trade's name, but the term as used today has a broader meaning.

Similarly, millwrights originally specialized in setting up grain mills and saw mills, but today they may be called upon for a broad range of fabrication work.

23

Ironworkers, also known as steel erectors, also engage in fabrication. Often the fabrications for structural work begin as prefabricated segments in a fabrication shop, then are moved to the site by truck, rail, or barge, and finally are installed by erectors.

Metal fabrication
Metal fabrication is a value added process that involves the construction of machines and structures from various raw materials. A fabrication shop will bid on a job, usually based on the engineering drawings, and if awarded the contract will build the product. Fabrication shops are employed by contractors, OEM's and VAR's. Typical projects include; loose parts, structural frames for buildings and heavy equipment, and hand railings and stairs for buildings.

Raw materials
Standard raw materials used by metal fabricators are;
y y

plate metal formed and expanded metal

o o o

Tube stock, CDSM Square stock Sectional metals (I beams, W beams, C-channel...)

y y y y

Welding wire Hardware Castings Fittings

Cutting and burning

The raw material has to be cut to size. This is done with a variety of tools. The most common way to cut material is by Shearing (metalworking);
24

Special band saws designed for cutting metal have hardened blades and a feed mechanism for even cutting. Abrasive cut-off saws, also known as chop saws, are similar to miter saws but with a

Forming
Hydraulic brake presses with v-dies are the most common method of forming metal. The cut plate is placed in the press and a v-shaped die is pressed a predetermined distance to bend the plate to the desired angle. Wing brakes and hand powered brakes are sometimes used. Tube bending machines have specially shaped dies and mandrels to bend tubular sections without kinking them. Rolling machines are used to form plate steel into a round section. English Wheel or Wheeling Machines are used to form complex double curvature shapes using sheet metal.

Machining
Fabrication shops will generally have a limited machining capability including; metal lathes, mills, magnetic based drills along with other portable metal working tools..

Machining operations
The three principal machining processes are classified as turning, drilling and milling. Other operations falling into miscellaneous categories include shaping, planing, boring, broaching and sawing.
y

Turning operations are operations that rotate the workpiece as the primary method of moving metal against the cutting tool. Lathes are the principal machine tool used in turning.

Milling operations are operations in which the cutting tool rotates to bring cutting edges to bear against the work piece. Milling machines are the principal machine tool used in milling.

Drilling operations are operations in which holes are produced or refined by bringing a rotating cutter with cutting edges at the lower extremity into contact with the work piece. Drilling operations are done primarily in drill presses but sometimes on lathes or mills.
25

Miscellaneous operations are operations that strictly speaking may not be machining operations in that they may not be swarf producing operations but these operations are performed at a typical machine tool. Burnishing is an example of a miscellaneous operation. Burnishing produces no swarf but can be performed at a lathe, mill, or drill press.

More recent, advanced machining techniques include electrical discharge machining (EDM), electro-chemical erosion, laser cutting, or water jet cutting to shape metal work pieces. As a commercial venture, machining is generally performed in a machine shop, which consists of one or more workrooms containing major machine tools. Although a machine shop can be a stand-alone operation, many businesses maintain internal machine shops which support specialized needs of the business.

Types of machining operation

There are many kinds of machining operations, each of which is capable of generating a certa in part geometry and surface texture. In turning, a cutting tool with a single cutting edge is used to remove material from a rotating work piece to generate a cylindrical shape. The speed motion in turning is provided by the rotating work part, and the feed motion is achieved by the cutting tool moving slowly in a direction parallel to the axis of rotation of the work piece. Drilling is used to create a round hole. It is accomplished by a rotating tool that is typically has two or four cutting edges. The tool is fed in a direction parallel to its axis of rotation into the work part to form the round hole. In boring, the tool is used to enlarge an already available hole. It is a fine finishing operation used in the final stages of product manufacture. In milling, a rotating tool with multiple cutting edges is moved slowly relative to the material to generate a plane or straight surface. The direction of the feed motion is perpendicular to the tool's axis of rotation. The speed motion is provided by the rotating milling cutter. The two basic forms of milling are:
y

Peripheral milling
26

Face milling

Other conventional machining operations include shaping, planing, broaching and sawing. Also, grinding and similar abrasive operations are often included within the category of machining.

Welding
Welding is the main focus of steel fabrication. The formed and machined parts will be assembled and tack welded into place then re-checked for accuracy. A fixture may be used to locate parts for welding if multiple weld ments have been ordered. The welder then completes welding per the engineering drawings, if welding is detailed, or per his own judgment if no welding details are provided. Special precautions may be needed to prevent warping of the weldment due to heat. These may include re-designing the weldment to use less weld, welding in a staggered fashion, using a stout fixture, covering the weldment in sand during cooling, and straightening operations after welding. Straightening of warped steel weldments is done with an Oxy-acetylene torch and is somewhat of an art. Heat is selectively applied to the steel in a slow, linear sweep. The steel will have a net contraction, upon cooling, in the direction of the sweep. A highly skilled welder can remove significant warpage using this technique. Steel weldments are occasionally annealed in a low temperature oven to relieve residual stresses. Welding details: Welding is a fabrication or sculptural process that joins materials, usually metals or thermoplastics, by causing coalescence. This is often done by melting the workpieces and adding a filler material to form a pool of molten material (the weld pool) that cools to become a strong joint, with pressure sometimes used in conjunction with heat, or by itself, to produce the weld. This is in contrast with soldering and brazing, which involve melting a lower-melting-point material between the workpieces to form a bond between them, without melting the workpieces. Many different energy sources can be used for welding, including a gas flame, an electric arc, a laser, an electron beam, friction, and ultrasound. While often an industrial process, welding can be done in many different environments, including open air, under water and in outer space.

27

Regardless of location, welding remains dangerous, and precautions are taken to avoid burns, electric shock, eye damage, poisonous fumes, and overexposure to ultraviolet light.

Gas welding
The most common gas welding process is oxyfuel welding, also known as oxyacetylene welding. It is one of the oldest and most versatile welding processes, but in recent years it has become less popular in industrial applications. It is still widely used for welding pipes and tubes, as well as repair work. The equipment is relatively inexpensive and simple, generally employing the combustion of acetylene in oxygen to produce a welding flame temperature of about 3100 C. The flame, since it is less concentrated than an electric arc, causes slower weld cooling, which can lead to greater residual stresses and weld distortion, though it eases the welding of high alloy steels. A similar process, generally called oxyfuel cutting, is used to cut metals.

Geometry
Many welding processes require the use of a particular joint designs; for example, resistance spot welding, laser beam welding, and electron beam welding are most frequently performed on lap joints. Other welding methods, like shielded metal arc welding, are extremely versatile and can weld virtually any type of joint. Some processes can also be used to make multipass welds, in which one weld is allowed to cool, and then another weld is performed on top of it. This allows for the welding of thick sections arranged in a single-V preparation joint, for example.

28

The cross-section of a welded butt joint, with the darkest gray representing the weld or fusion zone, the medium gray the heat-affected zone, and the lightest gray the base material. After welding, a number of distinct regions can be identified in the weld area. The weld itself is called the fusion zonemore specifically, it is where the filler metal was laid during the welding process. The properties of the fusion zone depend primarily on the filler metal used, and its compatibility with the base materials. It is surrounded by the heat-affected zone, the area that had its microstructure and properties altered by the weld. These properties depend on the base material's behavior when subjected to heat. The metal in this area is often weaker than both the base material and the fusion zone, and is also where residual stresses are found.

Final assembly
After the weldment has cooled it is generally sand blasted, primed and painted. Any additional manufacturing specified by the customer is then completed. The finished product is then inspected and shipped.

Specialities
Many fabrication shops have speciality processes which they develop or invest in, based on their customers needs and their expertise:
y y y y y y y y y y y y y

Brazing Casting Chipping Drawing Extrusion Forging Heat treatment Hydro forming Oven soldering Plastic fabrication Powder coating Powder metallurgy Punching
29

y y y y

Shearing Spinning English wheeling Welding

SHEARING
=

Types
 Alligator shear  Bench shear

A bench shear A bench shear, also known as a lever shear, is a bench mounted shear with a compound mechanism to increase the mechanical advantage. It is usually used for cutting rough shapes out of medium sized pieces of sheet metal, but cannot do delicate work. Usually this type of shear can handle steel sheet metal up to 3 mm (0.12 in) thick. Other types of geometrical possibilities include the squaring shear, angle shear, bow-tie shear and bar shear. All of these have many different uses and are all used regularly in certain manufacturing fields.]

Power shears: A power shear is electrically or pneumatically powered hand tool designed to
blank large pieces of sheet metal. They are designed to cut straight lines and relatively large radius
30

curves. They are adventageous over a bandsaw because there is not a size limit. Large versions can cut sheet metal up to 12 gauge.

Throatless shear

Throatless shear

31

COMPANY PROFILE
Company address : 331/94, Aurobindo Nagar,Chandrasekharpur,Bhubaneswar-16,Ph. 0674-2741274,6540362. Email: farmicometals.bbsr@gmail.com

Company history Name- Soumya Kanta Das s/o(Fathers name)-late Uday Nath das Date of birth- 15th march 1968 Qualification- B.S.C (Botany Hons.) BJB collage on 1988. Started the business on 31st march 1989 as a steel trunk, grain bin, water drum, poultry, and fishery equipments manufacturing and supplier, This unit is registered as SSI under DIC Bhubaneswar Under Orissa small industries corporation Cuttack, Under Orissa agro industries corporation Bhubaneswar, as argils.Implements manufactured and supplier. Govt. Of Orissa(dept.Of agril.) send me to take training on advanced technology on agril. Impliments at Bhopal agril. University. OUAT, and govt. Of India dept Of agril. And food production, ware trained on advanced agril.Now we are engaged to manufacturing and supply, installed outdoor advertising works. Now we are regd. Under Aircel, reliance ,BSNL Tata teleservices ,Vodafone and Airtel telecom services. We are also regd. Under regular outdoor advertiser at Kiit, Sai international School, Alishan plywood, Turtle Garments and many others. We also have the latest technology Flex print machine and other equipments.

32

Brief history 1987, I was on 2nd yr B.sc(hons) at B.J.B collage Bhubaneswar .The most prestigious science college in state of odisha 18th December 1987 at night 11.50 pm.A black night came on my life .My father was dead of severe heart attack. I found the whole world was dark for me. My father was left more than Rs 1.00 lakh hand loan and more than Rs 2.00 lakh bank loan , and my mother , two sister and two brothers we all in study position. A great responsible to me to survive our family came upon my head. I finally decided to do something to survive. One of my fathers friend Mr Jena a clerical staff of I.O.B Regional office, was guided me to start a small tin box shop. I opened it with a very small amount Rs 1000/- only. Another clerical staff of I.O.B mancheswar branch through Mr Upadhay Branch. After his to Bangalore, the branch was not deal properly with me. I complained it to RM Mr Prasad. At the time the branch manager of Satyanagar branch Mr Satya Narayan Nayak had called me to his chamber and opened a current account and help me a lot. First time i saw a good people, good officer, in my life. He first time approved a cc of Rs 100000/-.That loan amount increased in phase manner till today. I also must thank full to Mr.Anketa Rao, Mr.S N MISHRA. Mr. G.C Mohapatra, Mr.Sataya singh, Mr.Beura. I am very much grateful to Mr. Satya Nayak, CRM. He is the actually path finder of mine, his advice will always show me a good future. Our unit started with one mechanic and one labour, now our staff position is 62 nos. We had started with Rs 35000/- now our turn over is more than Rs 5.00 crore.

DESCRIPTION OF THE PRODUCT The fabricated products formed are made of metal (iron). They employ different methods for its production which are explained above. The finished products are:
y Cubes y Lolipops y Runners y Sheets y Glow shine Boards
33

y Advertisement Table y High Mast Cubes

These are available on order. The sizes are like: o 12*6 inch o 24*16 inch o 8*3 inch

Available substitutes in Market There are not much substitute in market, except some readymade fibred case with light fitted in it.
TARGET BUYERS: Farmico group of companies started its production in the year 2009 -10 with a main objective of providing good quality and efficient product which is available as soon as possible. It had covered the places in and around Bhubaneswar city and expanded to neighbouring cities like Cuttack, Rourkela, Berhampur and Sambalpur. It focuses mainly at educational, industrial and commercial organizations and individual consumers.

MARKET STRATEGY: A three-fold tactic is adopted to increase sales. Primarily, we are shoring up enthusiasm among customers by planting boards and advertising flexex products. A lot of people are still not aware of the utility of benefits of these advertising there products. We are also going in for press advertisements as well as direct marketing. For direct marketing, we will approach various clubs, fair and big companies in and around Odisha and request them to permit us set up shops in their premises or make a deal with them.

34

FINANCIAL DATA

FIXED ASSET SCHEDULE AS AT 31ST MARCH 2011

Block Of Assets Furniture & Fixtures Plant & Machinery Industrial Land & Shed Pick up Van & 2 nos Tata Ace OB 300000 Addition 100000 Total 400000 DEP Rate DEPRE. 0.1 40000 Amount Rs Closings

3,60,000 17,00,000 75,00,000 694268

600000 1400000 2000000 0.15 300000 0 7500000 7500000 816785 0 0 0 12252

816785 0.15

1,02,54,268

35

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010
PARTICULARS To Opening Stock To Purchase & labour To Gross Profit C/d To Staff Salaries To Travelling & Conveyance To Postage & Courier To Telephone Charges To Rent & Electricity To Consultancy Charges To Office Expences To Bank Interest & Charges To Legal Charges To Printing & Stationary to Audit Fees To Depriciation To Misc. Expenses to Net Profit C/d AMMOUNTS 10,35,145 1,17,00,060 47,60,054 1,74,95,259 12,00,000 2,80,000 27,200 40,000 94,000 41,000 92,000 2,30,000 35,000 25,000 25,000 1,51,152 18,000 17,77,502 2,15,31,113 PARTICULARS By Sales ByClosing Stock AMMOUNTS 1,37,45,259 37,50,000 1,74,95,259 40,35,854

By Gross Profit B/d

2,15,31,113

EMPLOYEE y Semiskilled y Skilled y Unskilled y Administrative staffs 40 20 25 5

36

ASHIM AVINASH NAYAK

ADDRESS: CONTACT NO. : EMAIL ID: DATE OF BIRTH: AGE: EDUCATIONAL QUALIFICATION: S-3/313,Niladri Vihar, C.S Pur 9090401036 avinashcreates@gmail.com 02/08/1989 21 BTECH (4th year) in ELECTRONICS AND

TELECOMMUNICATION TRAINING: BSNL Summer Training Course at RTTC,

Bhubaneswar the year 2009. Summer Training from Airport Authority of India (AAI), Biju Patnaik Airport Authority QUALITIES: Believe in creativity in work and love to work in a team. FAMILY BACKGROUND: I am from a nuclear family consisting of four members including myself. My father works as a government employee. My mother is a housewife and my younger sister is pursuing her M.B.A

37

NEELAMADHAB KHAYA
ADDRESS: CONTACT NO. : EMAIL ID: DATE OF BIRTH: AGE: EDUCATIONAL QUALIFICATION: Khurda,Marwadi Nagar 9861057277 neela_theintelligent@gmail.com 25/10/1988 22 BTECH (4th year) in ELECTRONICS AND

TELECOMMUNICATION TRAINING: BSNL Summer Training Course at RTTC,

Bhubaneswar the year 2009. QUALITIES: I am an extrovert person with an optimistic approach towards completing my work with perseverance and accuracy. I am good at my stress management skills and coordination ability. FAMILY BACKGROUND: I am from a nuclear family consisting of four members including myself. My father works as a government employee at Rourkela Steel Plant, Rourkela. My mother is a housewife and my elder brother, also a Btech graduate pursuing for higher studies.

38

BIKASH CHANDRA DAS

ADDRESS: VIIM-34, Sailashree Vihar, Bhubaneswar 751021, Odisha. CONTACT NO. : EMAIL ID: DATE OF BIRTH: AGE: EDUCATIONAL QUALIFICATION: 09583959354 debprasan@gmail.com 24/05/1989 21 BTECH (4th year) in ELECTRONICS AND

TELECOMMUNICATION TRAINING: Training on VLSI Design from Central Tool Room & Training Centre (CTTC) in month, January, 2010. Summer Training from Airport Authority of India (AAI), Biju Patnaik Airport Authority QUALITIES: Hard working, doing things in organized manner and appetite to learn FAMILY BACKGROUND: I am from a nuclear family consisting of three members including myself. My father works in a private firm. My mother is a housewife.

39

MITHUN KUMAR BEHERA

ADDRESS: S-2/76, Niladri vihar, Chandrasekharpur, Bhubaneswar-751021, Odisha. CONTACT NO. : EMAIL ID: DATE OF BIRTH: AGE: EDUCATIONAL QUALIFICATION: 0674-2721340 behera.mithun88@gmail.com 12/04/1989 21 BTECH (4th year) in ELECTRONICS AND

TELECOMMUNICATION TRAINING: Training on VLSI Design from Central Tool Room & Training Centre (CTTC) in month, January, 2010. Summer Training from Airport Authority of India (AAI), Biju Patnaik Airport Authority QUALITIES: critical thinking, teamwork, disciplined,

adoptability with situation, willingness to wor k with different kinds of people and taking challenges in positive way. FAMILY BACKGROUND: I am from a nuclear family consisting of four members including myself. My father works as a government employee. My mother is a housewife and my younger sister is pursuing is in high school.

40

OURS PROJECT
Ours project is aimed at creation of products that provide new companies and institutions in promotion.
Name of the firm: Fabrico Pvt. Ltd. Location Of the firm : Chandaka Industrial Estate It is nearer to all the raw material suppliers and all the dealer and distributor offices. This location has good transporting facilities for the raw materials as well as the finished products.
NATURE OF THE ORGANISATION: Partnership Firm

ADDRESS OF THE FIRM: M-23/CHANDAKA INDUSTRIAL ESTATE, BHUBANESWAR, ORISSA PIN-751021 Mail id: info@fabrico.com Website:www.fabrico.com Contact No.:+91 8093520648 +91 9861057277

TYPE OF PROJECT: PRODUCTION COMPANY

41

DESCRIPTION OF THE PRODUCT:

Fabrico Company products are purely company based products. The product goes through different steps and finally it is flexed with ads. Several things like hoardings are prepared for different companies for different Telecom companies. That includes advertisement, road shows, and high mast glow shine boards.

MARKET SCENARIO:
The market is currently dominated by a few key players. From a survey conducted by us on a sample market it was found that there is a considerable gap between company expectations and their fulfilments. Many companies feel that the quality of product of products is not in accordance to the price. These types of customers, however, mostly belong to the non-organizational and non-institutional types. We feel that with our high quality service offerings with comparatively lower price, we can fill this void and can capture a good market share within a short span.

TARGET ORDERS: FABRICO PVT. LTD. will initially cover the places in and around Bhubaneswar city and
would then expand to neighbouring cities like Cuttack, Puri, khurda etc. We aim the shops, educational, commercial organizations and individual consumers.

TARGET MARKET SHARE:

Targets to achieve a 20% market share within 3 years and gradually aim at being a national level service provider.

42

MARKETING STRATEGY:
 Advertisements through newspapers, televisions and radio.  Advertisements through hoardings at different places in the cities.  Advertisements through the circulation of leaflets.  Promotional discounts.  To govt. employees at subsidized rates.

LOCATION
The unit has acquired plot no M-23/CHANDAKA INDUSTRIAL ESTATE , by paying an amount of 5,16,000/- and taken over the plot of land as per agreement all infrastructures are available. The unit has acquired the premises measuring 2000 sqft. . Out of survey No.3452/08A of city Bhubaneswar, district Khurda for 5,16,000/.

Being in the Chandaka Industrial Estates, FABRICO PVT. LTD., enjoy the prime location. It is nearer to all the raw material sup pliers and all the dealer and distributor offices. This location has good transporting facilities for the raw materials as well as the finished products. The industrial environment helps to gain recognition in the market and also is beneficial as the recent developments and innovations can easily be obtained in this location.

43

PLANT LAYOUT

PATHWAY

RAW MATERIAL STORE IRON CUTTIN SECTION LABOUR REST AND FRESH ROOM

HOARDIN PASTIN AND FINISHIN WELDIN SECTION

FINIS ED PRODUCT STORE OUSE

F EX STORE ROOM

RE EPTI N

F EX C TTIN SECTI N

SI IN AR A

F EX PRIN ER SE

I N

44

FINANCIAL ASPECTS
1.LAND AND BUILDING
Serial No. 1. Particular Area Total Remarks Required value(Rs.) Land 2000 sq.Feet 1400 sq.Feet 516000 Near Trident College A single stored building for accommodating the entire staff.

2.

Building

1000000

Total

15016000

2.MACHINERIES/EQUIPMENTS
Serial No. 1. Description Requirement Rate(Rs.) Total Value(Rs.) 30000

Printing Machine

15000

2.

Quilting Machine

15000

15000

Total

45000

45

3. MISCELLANEOUS FIXED ASSETS

Serial No. 1. 2. 3. Particular Personal Computer Document Stationary Furniture Requirement 4 Rate(Rs.) 32000 Total Value 128000 10000 138000 276000

Paper, Office 10000 Accessory etc Sofa, Chair,Table.etc Total

4. PRELIMINARY AND PRE OPERATIVE EXPENSES

Serial No. 1. 2. 3. Particulars Interest during implementation Establishment Start up expenses Total 50000 50000 Amount(Rs.) Remarks Not needed Not needed For starting the business

46

5. WORKING CAPITAL
Serial No. 1. 2. Item Raw Material Salary Rs. 500000 475000

3.

Interest On Loan Total

132480 1107480

6. UTILITIES
SERIAL NO. 1. 2. PARTICULARS ELECTRICITY WATER TOTAL: EXPENDITURE 30000 10000 40000

47

7. Salary/wage
Serial No. 1. 2. Particulars Numbers Wages/Salary Annual per month expenses 10000 8000 Total 250000 80000 330000

Skilled 25 employee office staff 10

BREAK EVEN POINT ANALYSIS

Breakeven point = (F.C*100)/(F.C+Profit)

=(15,01,600 * 100)/(15,01,600 +5,70,480) = 72.46%

INCOME TAX:
Companies residents in India are taxed on their worldwide income arising from all sources in accordance with the provisions of the Income Tax Act. Non-residents corporations are essentially taxed on the income earned from a business connection in India or from other Indian sources. A corporation is deemed to be resident in India if it is incorporated in India or if it s control and management is situ ated
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entirely in India. Domestic corporations are subject to tax at a basic rate of 35% and a 2.5% surcharge. Foreign corporations have a basic tax rate of 40% and a 2.5% surcharge. In addition, an education cess at the rate of 2% on the tax payable is also charged. Corporate are subject to wealth tax at the rate of 1%, if the net wealth exceeds ` 1.5 mn (Approx. $33333). Corporations also have to pay for Minimum Alternative Tax at 7.5% (plus surcharge and education cess) of book profit as tax, if the tax payable as per regular tax provisions is less than 7.5% of its book profit.

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BIBLIOGRAPHY

[1] PRODUCT MANAGEMENT by RAMANUJ MAZUMDAR [2] MARKETING MANAGEMENT by RAJAN SAXENA [3] FARMICO GROUP OF COMPANIES PVT. LTD. [4] www.farmicometals.com [5] FARMICO BOOKLETS

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