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Biscuits T.Y.B.B.A PPR
Biscuits T.Y.B.B.A PPR
Biscuits T.Y.B.B.A PPR
ON
: PREPARED BY :
RAJESH H. MER
: CLASS :
T.Y.B.B.A.
: COLLEGE :
2011 2012
ROLL NO.
30
SEAT NO.
: SUBMITTED TO :
SAURASHTRA UNIVERSITY.
: GUIDED BY:
Prof. B.L.SARDHARA
DECLARATION
I RAJESH H. MER undersigned a student of T.Y.B.B.A. here by declare that the project work presented in this report is my own work and has been carried out under the supervision of Prof. B.L.SARDHARA of SMT. M.T. DHAMSANIA COLLEGE RAJKOT This report has not been previously submitted to any other University your any examination.
PREFACE
The B.B.A. is a professional course which helps the students to develop the knowledge for business field and industry in T.Y.B.B.A. the product project report is the part of our syllabus. The product project report shows us actually what difficulties is new entrepreneur of small business faces while starting his unit. A product project report plays a significant role for small business specially for financial arrangement thats why proper care should be taken in preparing this report.
ACKNOWLEDGEMENT
I glad to present Product Project Report on BISCUIT MIXTURE to the Saurashtra University. In this reference, I am heartly thankful to Prof. B.L.SARDHARA for support and guidance provided by her. I am also thankful to all those person who have helped me in every aspects for preparing the project.
INDEX
No. Particular
1 2 3 4 5 6 7 8 9 10 11 Introduction of Product. Project at a Glance. Partners Background. Location. Market Potential. Raw material. Basis and Presumption. Implementation Schedule. Manufacturing Process. Production Capacity. Financial Details of Project. (A) Details of lord and Building. (B) Machinery & Equipments. (C) Other Fixed Assets. Working Capital. (A) Personnel. (B) Raw material. (C) Utilities. (D) Other Contingent Express. Project Cost. Sources of Funds. Depreciation. Financial Analysis. (A) Cost of Production. (B) Turnover. (C) Return on Investment. (D) Profitability Analysis. (E) Break Even Analysis. (F) Balance Sheet. Suppliers of Machinery. Future Prospects. Risk Factors.
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13 14 15 16
17 18 19
Introduction Of Product
Biscuits constitute an important item of bakery industry. Today Biscuits become a common item of consumption among all classes of people with tea or coffee, Biscuits make a tasty nutritious shake. Biscuits has become here and more popular as a convenient food with the changes taking place in the economic life of masses, the consumption of Biscuit has been increasing over the years, and this envisages the scope for setting up of Biscuit Mixture units. People started manufacturing Biscuits of their own taste by using baking ovens very popular in the market now-a-days. To made it more convenient there is a need of Biscuit Mixture which will be ready mix and after adding water, the dough will be ready mix hour on commercial scale saves times, labour and is sometimes ever cheap to the housewives.
Project At A Glance
Name of unit Communication Address Form of organization Owner Name of the Product S.S.I. Registration No. Subsidy Registration No. Type of Industry Type of Organization Budget cost of Product Means of Finance No. of Employees Plant Installed Capacity : : : : : : : : : : : : : MER Food Product HOLIDAYCAMP ROAD CHORWAD-362 250 MER RAJESH H. BISCUIT Application has been Made Application has been Made Food Industries 6000000 Owned Capital and Loan from DENA BANK CHORWAD. 16 100 %
Owners Background
Marketing
Management. : Near water tank chorwad. : 20,00,000 : Marketing and Production Department.
Location
8
To choose the proper location is first step for establishment of unit. True selection of location helps unit for better growth, while selecting the site of location the factors should be considered are as follows:
1. 2. 3. 4.
Availability of Raw material. Cheaper Manpower. Transport Facilities. Availability of Energy sources.
I shall start Biscuits industry in chorwad at holidaycamp road chorwad because Raw material and labour are the main factors in this industry which is early available at this place.
Market Potential
9
The consumption of Biscuit has been increasing over the years. The finding of survey indicates that nearly 47% of Biscuits are consumed in the rural and semi-urban areas which constitutes bulk of our population. Looking at such a demand this ready mix can definitely be a popular item particularly in rural and urban areas. So, we can class by whole Biscuit market into there categories based on area:
1. 2. 3.
Raw Material
10
The main raw material used in Biscuit Mixture are as follows: 1. 2. 3. 4. (A) (B) (C) (D) (E) Wheat Flour. Sugar. Vegetable Fat. Miscellaneous Items. Milk Powder. Chemical. Colour Flavor. Coco Vit Fat. Glucose Etc.
5.
Packing Material.
Above all raw materials are easily available from local market. So, there is no difficulty to get raw material. So, there is less of transportation. All the materials are available from local market.
11
12
Implementation Schedule
The Implementation Schedule will be given as below: 1. Preparation of Project Report Selection of Site Registration as S.S.I. unit. 2. Availability of Finance Selection of Machinery, 3 Months 3 Months
Procurement of Machines. 3. Erection and Commissioning Trial Run. 1 Months 4. Recruitment of labours and Commercial Months Production.
Manufacturing Process
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The ingredients normally used are Maida, Sugar, Vanaspati or Bakery Fat, Backing powder, Milk powder, Essence and Chemicals. The ingredients as per formulation except Vanaspati bakery fat are dried to desired moisture content before grinding if required. They are then weighed, mixed and blended thoroughly. The product thus obtained is packed in polythene bags of suitable size paper box and then kept in big cartoons for storing and transportation. The fat is to be added at the fire of preparation of the mixture for baking by the consumer.
about Moisture content and bacteriological count etc. are required to be looked into.
Production Capacity
14
No. 1. 2 3 4
Particulars Biscuit Mixture 500 g.m. Packet Biscuit Mixture 250 g.m. Packet Biscuit Mixture 100 g.m. Packet Biscuit Mixture 50 g.m. Packet
The total production capacity at 100% is 2,00,000 packets of 50 gm & 1,50,000 packets of 100 gm. & 1,00,000 packets of 250 gm& 1,00,000 packet of 500 gm.
Financial Aspect
(I) Details of Lard & Building
Area [sq. Ht] 500 PSM Rate 5,000 Total Valve 25,00,000
15
5,65,000
1,79,000
Total Fixed Cost = = 25,00,000 + 5,65,000 + 1,79,000 32,44,000
16
Working Capital
1. Personnel
No. 1. 2. 3. 4. 5. 6. 7. Particular No. of Employees 1 1 1 1 2 3 7 16 Monthly 18000 15000 12000 10000 4500 7000 5000 Total Cost 18000 15000 12000 10000 9000 21000 35000 120000 24000 144000
Manager Accountant Store-keeper Clerk cum Typist Mechanical Supervisor Peon cum Chowkidar Skilled labour Unskilled labour Total salary & wages Add Facilities (20% of salary) Total
Rate [perkg.]
Value
1. 2. 3. 4.
5.
Wheat Flour Sugar Vegetable Fat Miscellaneous items Milk Powder, Chemicals, Colour, Flavor, Coco, Vit, Fat, Glucose, etc. Packing Material
18 30 80
52,000
Total
2,62,200
Total
20,000
Total
30,000
= =
18
= =
Project Cost
1. Fixed Capital
No. 1. 2. 3. Particular Land and Building Machinery & Equipment Other Fixed & Installation a. Electricity & Installation b. Office Function & other Equipment Amount 25,00,000 5,65,000 46,500 1,32,500
Total
32,44,000
2. Working Capital
No. 1. 2. 3. 4. Particular Personnel (Wages & Salary) Raw Material Utility of Power & Water Other contingent Expenses Amount 1,44,000 2,62,200 20,000 30,000
Total
4,56,200
Total capital investment: Fixed Capital Investment Working Capital for (4,56,200 3)
19
32,44,000 13,68,600
46,12,600
No. 1. 2.
Sources of Funds: Description Owned Capital Borrowed Capital Amount 23,03,300 23,03,300
46,12,600
No. 1.
23,03,300
No. 1.
23,03,300
Interest on Fund: 20
No. 1. 2.
5,06,726
No. 1. 2. 3.
Depreciation: Description Depreciation on Machinery Depreciation on L&B Depreciation on Other Assets Rate 25% 15% 12% Amount 1,41,250 3,75,000 21,480
5,37,730
Cost of Production
No. Particulars 1. Total recurring cost per year (4,) 2. Total Depreciation
21
6012130
Turnover
No. 1. 2 Particulars Rate per packet Biscuit Mixture 500 39.5 g.m. Packet Biscuit Mixture 250 19.5 Quantity 1,00,000 1,00,000 Value 3950000 1950000
22
3 4
g.m. Packet Biscuit Mixture 100 9.5 g.m. Packet Biscuit Mixture 50 4.5 g.m. Packet Annual Turnover
1,50,000 2,00,000
Return on Investment
ROI = EBIT 100 Cost of Project = 1705544 100 4612600
36.97%
23
Cost Of Capital
Interest on Owned Capital Interest on Borrowed Capital 10 % 12 %
COC
10 + 12 2
11 %
Profitability Analysis
Less: Less: Less: Sales Cost of Interest EBT Tax 35 % Production EBIT 8225000 6012130 2212670 506726 1706144 597150
PAT
Profit Volume Ratio: PVR = Contribution 100 Sales
24
1108994
26.90%
Net Profit Ratio: Net Profit Ratio = Net Profit 100 Sales = 1108994 100 8225000
13.48%
Fixed Cost:
Total Depreciation 40% of Salary & Wages 40% of other Contingent Expenses Interest on Total Investment 537730 691200 144000 506726
1879656
25
Variable Cost:
60% of Salary & Wages 60% of other Contingent Expenses Raw Materials Utilities 1036800 216000 3146400 1,20,000
4519200
Contribution:
Contribution = = Sales Variable Cost 8225000 4519200
3705800
26
33.33%
8225000
Wages &Salary Depreciation Interest Other Contingent 1728000 Gross Profit 537730 506726 360000 1706144 597150 1108994
27
8225000
4838600
Expenses
EBT Less: Tax Net Profit
4838600
4838600
Balance Sheet
Capabilities
Capital: Owned:
Amount
L&B 2303300
Assets
2500000 Dep.: 375000
Amount
2125000
Machine& Equip. 2303300 565000 Dep.: 141250 506726 Other Assets 1108994 179000 Dep.: 21480
423750
157520
3516050 6222320
28
Suppliers of Machinery
(i)
of
Machines
and
(ii)
(iii)
M/s. Baltiboi & co. (p) Ltd., P.B. No. 1904 Fort, Bombay 400 001.
(iv)
M/s. Novel Engineers Pvt. Limited, 4th Floor, Sambhava Chambers, Sir Phirozshah Mehta Road, Bombay 400 001.
(v)
Future Prospects
Every units airs at its growth and development in future at the time of establishment. The future development of any unit shows its success in the market. Future development may be get through the increasing installed capacity or utilizing the existing resources of the unit to the full extend. So far as our unit is concern we have to utilize folly the available resources of our unit and by increasing production capacity we want to cover none market share with maintenance of good quality. There are so many varieties of Biscuits in the market. The consumption of Biscuits has been increasing over the year. We wants to cover more market in rural as well as in urban areas. Looking to this good prospect I select the product of Biscuit. It is for medium clays people as well as poor class people also.
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Risk Factors
In each and every business activity there is some risk in the some way our unit is also having some risk factory, which are as follows:
As our product is under the list of food items so if license not provided by government authority within a specific time it is difficult to start the production. There is also possibility for non-receipt or less receipt of loan from government. At present there is minimum competition in the market but in the future then may be cut-throat competition and it may be difficult to continue the business at the time of competition.
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It is also possible that all the factory may suitable for production and finance but the marketing of our products may not enough so there is every possibility of failure or close-down the unit.
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