SAMPLE BUSINESS PLAN

The Ministry of MSME, Government of India, has suggested the following format to submit business plan proposals

BUSINESS PLAN FORMAT FOR MSMES

(Manufacturing Industries)

1.0

Name of the Company panasonic

MOBILE PHONES,SMART TV
Name of business/project

Kadoma, Osaka, Japan

Location

Type of Organization
NA
(Proprietary Partnership)

Sumitomo Fudosan Shiodome Hamarikyu Bldg., 8-21-1

Ginza, Chuo-ku, Tokyo 104-0061, Japan (Registered
Address (with Phone, e-mail) Place of Incorporation: 4-1-62 Minoshima, Hakata-ku,
Fukuoka City 812-8531, Japan) Sites and Affiliates
Phone:+81-3-5565-8700,

Name of the Chief Promoter(s)

Yuki Kusumi

Date of Birth 22 January 1965

NA
Names of Partners
1.1. EDUCATIONAL QUALIFICATION:

COURSE SCHOOL/UNIVERSITY/
MAJOR SUBJECT YR. OF PASSING
(SSLC/DIPLOMA) INSTITUTE

SSLC  Canadian Academy

1981
HSC  Yamamura Kokusai
High School
1984

DIPLOMA Graduated from the NA

1989
faculty of Engineering
at Kyoto University

1.2. SPECIAL TRAINING:

TRAINING IN INSTITUTE DURATION ACHIEVEMENT/REMARK

1.3. WORK EXPERIENCE (PAST & PRESENT)

Organization Position Nature of work Duration

CHENNAI CNC Sr. MANAGER MANUFACTURING 6 YEARS

1.4.

Promoter's Annual Income (Last Year) Rs.

$65,774.4

Assets owned by the promoter (s): Rs. $25,132.2

Movable

Immovable Rs. $26,887.6

1.5. COMPANY'S MAIN OBJECTIVE (Why does the company exist?):

MANUFACTURE OF PRESS TOOLS AND SPARES

1.6. FINANCIAL GOALS:

a) To have a sales revenue amounting to Rs. 1,50,00,000 (per annum)

b) To obtain a profit margin of 20%

c) To obtain a profit per business partner Rs. NIL

1.7. DESCRIPTION OF THE PRODUCT or SERVICE:

MANUFACTURE OF PRESS TOOLS AND SPARES

1.8 IDENTIFICATION OF THE CUSTOMERS:

1) SSS FABRICATORS
2) EVEREST PLASTICS
3) BEST ENGGINEERING WORKS
4) FORD
5) NISSAN

Needs satisfied by the product or service:

All needs of manufacturers related with press working operations can be satisfied.

1.9. IDENTIFICATION OF THE COMPETITION (Major competitors):

1) ELTA TOOLS

2) CHENNAI CNC

3) BEST PRESS TOOLS

Strengths/weakness of the competition:

STRENGTH WEAKNESS

Sufficient finance
Location

Competitive price of the product

Lack of customer service

Marketing people
Lack of latest technology
1.10. ADVANTAGES AND DISADVANTAGES OF THE PRODUCT AND YOUR COMPANY

Competitive when compared to others

Price

High
Quality

Terms of Delivery On time delivery as per customer need

Cash/Credit
Payment Methods

Very user friendly

Customer Service

Others NII

1.11. MESSAGE TO BE COMMUNICATED TO THE CUSTOMERS:

We undertake all engineering works related with press tools at cost effective rates.

1.13. PROCESS/SERVICE METHOD:

Technical know-how availability 6 Years of experience in the same field.

Raw material purchase, Pre Machining, Heat treatment,

Step-by-step description of the manufacturing process Final Machining, Assembly, Dispatch
1.14. WORKING PROGRAMME:

No. of working days/annum : 300 Days

No. of working shifts (8 hrs.)/day; :2

Installed capacity (annual) : 600

Utilised capacity (%)

Year -1 : 60%

Year-II : 90%

Year-III : 100%

Item(s) Sales (Service) Volume/Yr. Capacity Utilisation (%)

S.No

1. Tools 50 50

2. Tools 80 80

3. Tools 100 100

2.0. DETAILS OF THE PROPOSED PROJECT:

2.1. LAND AND BUILDING:

S.No. Particulars Area required Total value Remarks

1. Land own own

2. Building 3000 Sq. ft. 5,00,000 Advance

2.2. MACHINERIES/EQUIPMENT:

S.No. Description Nos. Required Rate (Rs.)

Total value (Rs.)

1.
CNC MILLING 40.00.000
1 40.00.000

2.
38.00.000
CNC WIRECUT
1 38.00.000

3.
4.00.000
CNC LATHE
1 4.00.000

4.
3.00.000
SURFACE GRINDING
1 3.00.000

5.
1.00.000
CENTRE LATHE
1 1.00.000

6.
2.50.000
OTHER EQUIPMENT
5 50.000

88.50.000
TOTAL
2.3. MISCELENEOUS FIXED ASSETS:

Total value
S.No. Particulars Nos. Required Rate (Rs.)
(Rs.)

1.
VECHILE
2 - 5.00.000

2.
OFFICE ITEMS
6 - 1.50.000

3.
COMPUTERS
4 - 2.00.000

4.
OTHER ITEMS
1 - 2.00.000

TOTAL
10.50.000

2.4. PRELIMINARY AND PRE-OPERATIVE EXPENSES:

S.No Particulars Amount (Rs.) Remarks

Interest during implementation

1. 4.00.000 -

Establishment expenses
2. 2.00.000 -

Start-up expenses
3. 25.00.000 -

Misc. expenses
4. 5.00.000 -
 TOTAL 36.00.000 -

2.5. WORKING CAPITAL:

Total Value (Rs.)

S.No Item Duration
Year-1 Year-2 Year-3 Year-4 Year-5

1. Raw -Material stock 3 Months 5.00.000 10.00.000 15.00.000 20.00.000 25.00.000

Semi-finished goods
2. 3 Months 5.00.000 35.00.000 45.00.000 50.00.000 55.00.000

Finished goods stock

3. 3 Months 5.00.000 45.00.000 50.00.000 52.00.000 55.00.000

4. Sales on credit 3 Months 10.00.000 70.00.000 80.00.000 90.00.000 1.00.00.000

5. Production expenses 3 Months 10.00.000 12.00.000 13.50.000 15.00.000 17.00.000

Total 35.00.000 1.72.00.0002. 03.50.000 2.27.00.000 2.52.00.000

2.6. TOTAL COST OF THE PROJECT:

S.No Particulars Total value (Rs)

1.
Fixed Capital Isum of 2.1+22+23) 1.04.00.000

2.
Working Capital (Sum of 2.5) (For 3 Months) 35.00.000
 3.
Preliminary & Preoperative Expenses (sum of 2.4) 36.00.000

Total 1.75.00.000

2.7. MEANS OF FINANCE:

Particulars Amount (Rs.) Remarks

S.No

-
Own Investment/Equity
1. 20.00.000

-
Term Loan
2. 1.25.00.000

-
Working capital loan
3. 30.00.000

-
Any other source (subsidy etc.)
4. -

-
1.75.00.0000

3.1. SALES REVENUE:

Items (s) Quantity Sold/Yr. Rate/ Unit (Rs.) Sales Revenue (Rs.)
S.No.

1. Press tools - - 5.75.00.000

2. Spares - - 3.45.00.000
 3. Fixtures - - 25.00.000

9.35.00.000
Total

4.1. RAW MATERIAL (ANNUAL) REQUIREMENT:

S.No Item (s) Quantity Rate (Rs.) Total value (Rs.)

1. All Raw Material - -

4.50.00.000

Total 4.50.00.000

4.2 UTILITIES:

Particulars
S.No Annul Expenditure (Rs) Remarks

1. Power /Electricity 4.80.000

-
2. Water 35.000
-
3. Coal/Oil/Steam 25.0000
-
4. Transport 2.40.000
-
5. Others 2.00.000
-
TOTAL 9.80.000

4.3. MAN POWER (SALARIES/WAGES):

Salaries/Wages
Particulars Annual expenses
S.No Nos Per Month ( Rs)
( Rs.)

1. Skilled 6 15.000 10.80.000

2. Semi - Skilled 4 10.000 4.80.000
3. Unskilled 2 5.000 1.20.000
4. Office Staff 2 10.000 2.40.000
5. others 1 25.000 3.00.000
TOTAL 22.20.000
4.4 REPAIRS AND MAINTENANCE:

S.No. Particulars Amount (Rs.)

1. Machinery Annual Maintenance Charges 25.000

25.000
TOTAL

4.5 SELLING AND DISTRIBUTION EXPENSES:

S.No. Particulars Amount (Rs.) Remarks

1. Publicity expenses 10.000 -

2. Travelling 1.00.000 -

3. Freight 60.000 -

4. Commission 1.00.000 -

5. Miscellaneous 50.000 -
 TOTAL 3.20.000 -

4.6 ADMINISTRATIVE EXPENSES

S.No. Particulars Amount (Rs.) Remarks

Stationery & Printing

1. 15.000 -

Post/ telephone
2. 42.000 -

Entertainment Expenses
3. 20.000 -

4. Miscellaneous 10.000 -

TOTAL 87.000

4.7 INTEREST:

Year Loan amount Outstanding (Rs.) Interest @ 14% (Rs.) Instalment Balance

Year-1 1.25.00.000 17.50.000 42.00.000 1.00.50.000

Year-2 1.00.50.000 14.07.000 42.00.000 72.57.000

Year-3 72.57.000 10.15.980 42.00.000 40.72.980

Year-4 40.72.980 5.70.217 42.00.000 4.43.197

Year-5 4.43.197 62.048 5.05.244 0

4.8 DEPRECIATION:

S.No Type of Asset Cost of Asset Expected Life Depreciation. 10% (Rs.)

1. CNC Milling 40.00.000 10 Years 4.00.000

2. CNC Wire EDM 38.00.000 10 Years 3.80.000

3. Other Machines 10.50.000 10 Years 1.05.000

TOTAL 8.85.000

5.1. PRICING:

Particulars Product 1 Product-2 Product-3

Total product cost per unit

(Fixed cost/unit +Variable
- - -
cost/unit)+Tax

Desired Profit
- - -
 Sales Price (including tax)
- - -

PROFITABILITY PROJECTIONS

S.No Particulars Amount (Rs. In Lakhs)

Year- 1 Year-2 Year-3 Year-4 Year -5

A Total Revenue 935 1200 1500 1800 2000

B Cost of producing

1. Raw materials 450 585 760 988 1185

2. Utilities 9.8 12.7 16.6 21.5 28

3. Salaries/Wages 22.2 29 38 49 63

4. Repairs & Maintenance 3.2 0.3 0.4 0.5 0.7

5. Selling & distribution 0.87 4 5.5 7 9

expenses

6. Administrative expenses 17.5 1.1 1.5 2 2.5

7. Interest 3.6 14.07 10.15 5.7 0.62

8. Rent 0.5 5 6 8 10
9. Misc. expenses 507.92 0.7 0.9 1 1.5

TOTAL- B ( 1 t 9) 507.92 651.87 839.05 1082.7 1300.32

C. (A-B) Gross Profit / Loss 427.08 548.13 660.95 717.3 699.68
D. Less: Depreciation 8.85 8 7.2 6.5 5.9

E. Les: Income-tax 250 300 350 400 450

F. Net Profit/Loss 168.23 240.13 303.75 310.8 243.78

G. Loan Repayment 42 42 42 42 5.1

H. Retained Surplus 126.23 198.130 261.75 268.8 238.68