APPENDIX -1

SAMPLE FEASIBILITY STUDYREPORT

SI.NO TITLE PAGENO.

1. EXECUTIVE SUMMARY 5

2. DESCRIPTION OF PRODUCTAND SERVICES 7

3. TECHNOLOGY CONSIDERATIONS 10

4. PRODUCT/SERVICE MARKETPLACE 13

5. MARKETING STRATEGY 15

6. ORGANIZATION AND STAFFING 17

7. SCHEDULE 18

8. FINANCIAL ASPECTS 19

INDEX

1
9. FINDINGS AND RECOMMENDATIONS 21

10. FINAL ANALYSIS 21

2
 INTRODUCTION:
An industrial fastener
comprises a very wide range of items like
nuts andbolts, washers, studs, nails etc.
Nuts and bolts consist a major link in the
family ofindustrial fasteners and are used by
every industry. Bolt is a piece of metal
rod,whose one end is unsettled and other
end is threaded. Nut is the item, which rolls
on these threads. Nut and bolts are
available in various shapes, designs and
sizes.
Nuts and Bolts are type of industrial
fasteners used in various products, machines,
structures etc. A fastener is used for joining,
holding or assembling of a single or multiple
components. Bolts and nuts are in the category of
headed and threaded fasteners. Bolt is a piece of
metal rod, whose one end is upsettled and other
end is threaded. Nut is the item which rolls on
these threads. Nut and bolts are available in
various shapes, designs and sizes.

3
There are many industries producing these nuts
and bolts of various sizes, but the demand too is
increasing as well as the raw material for the
product is easily and indigenously
available. The major raw material is mild steel wire
coil/ rod of required diameter. The composition of
material controls.
Nuts and bolts are used for fastening
purpose in industries where the replacement of
pieces and the parts is necessary. There are many
industries
producing these nuts and bolts of various sizes,
but the demand too is increasing as well as the
raw material for the product is easily and
indigenously available. The main raw material is
mild steel wire coil/rod of required diameter. The
composition
of materials controls the quality of the bolts and
nuts. The recommended composition for nuts and
bolts raw material is given as under:
Carbon 0.22 to 0.23%
Phosphorus 0.40%

4
 Manganese 0.39 to 0.60%
Sulphur 0.50%

Nuts and bolts are classified by two ways: i)

Their uses, ii) Shape of head.
In terms of use, nuts and bolts are of several
types:
Larger dia bolts, machine bolts, stand bolts, joint
bolts, foundation bolts and
nuts etc. in terms of shape, bolt and nuts are
classified by head shape like
hexagonal head, square head, round head, pan
head, truss head etc.
1. EXECUTIVE SUMMARY:
Although this is the first section of the
plan, the Executive Summary is the last section that
you write.
The Executive Summary concisely summarizes the
essence of the business and the key decisions made

5
by the entrepreneurial team in each area of the
plan. It is not merely an abbreviated business plan, but
instead represents an opportunity for you to provide the
reader a clear, basic picture of the business, and be
enticed to want to read more. More than that, the job of
the executive summary is to sell – to sell your vision to
potential investors, employees, and other stakeholders.
Many entrepreneurs fail to consider adequately their
markets, their customers and a business model
that will enable them to achieve success. Instead they
often get wrapped up in an interesting
technology or product, which is not the same thing as
an attractive business. The questions below will
help you focus on the aspects of your executive
summary that are relevant to the business plan. These
are some initial considerations that first time readers
(venture capitalists, banks, competition judges,
etc.) look at before going on to evaluate the members
of the team and the soundness of your financial
projections. Make sure that your executive summary
provides answers to these questions in addition to
giving the reader an overview of the highlights from
your business plan for the new venture.
6
Quality And Standards : IS 1363 : 1992, IS 1364 (Part
2) : 2002,
IS 1367 : 1994, IS 2389 : 1968,
IS 4206 : 2012
NIC Code of the Product : NIC 2008 – 25991
Production Capacity (Per Annum) :
Quantity : 360 MT Per
Annum

2.DESCRIPTION OF PRODUCTS AND

SERVICES:
Problem-Opportunity Statement:
• Identify the problem and your ‘big solution.’ This
sets the tone for the rest of the
summary!
• Be direct and specific, not abstract and
conceptual
• What forces are creating the opportunity?
• Why is the opportunity ‘right now?’ What is the
size of the opportunity?
7
Business Concept and Product or Service:
• Develop a brief but powerful concept statement
that can be shown to potential customers.
• How will the product be used? What are some
unique features? What existing problem(s) will
you solve with your service or product offering?
What are the primary benefits to customers?
How does your solution improve or replace
current offerings?
• What is unique about this venture?
• Briefly describe the legal structure of the
venture.

There are no proposed changes to Acura’s

current product offering as a result of this
study.online sales will include only current produts
and any changes to this product line must be
considdersed outside of the purpose of this

8
document.

9
3.TECHNOLOGY CONSIDERATIONS :

Process of Manufacture:
The raw material used for
manufacture of bolt is M.S. Rounds. As some of
the rounds available are rusty and not perfectly
round and straight, it is necessary to make them
round. The rounds are pickled in the acid tanks,
washed and drawn in a drawing machine. The
cleaned rod is fed into the cold heading machine.
In the machine, one end of the rod is cut into the
desired length with cutting stroke and
simultaneously the head formation takes at
another end. For the HT bolts, forging is done on
hot forging press. The pins are then trimmed in the
trimming machine. In quality bolts, the lower side
of the head is also faced. Threading is done in the
thread rolling machines.
While manufacturing nuts, the
hexagonal rod of desired size is procured and
the nuts are cut on the automatic nut-cutting
machine. Cutted nuts blanks are drilled and

10
tapped on the nut-tapping machine. Finally, these
are deburred in the
polishing barrel.

Qualitative Parameters of the Product :

The quality of “Bolts & Nuts” has to be
superior and good in all aspects in order to fulfill
the requirement of the customer and standard
provided by the customer. The productsare to be
checked at every stage of operations with regard
to the various critical dimensions of products and
its form. To achieve this, right quality of material
has to be used depending
on the type and classification of the product. After
completion of the process, final inspection as per
the standard given is made. Necessary
rectification in the process cycle is made if
required to maintain the standard. The BIS has
formed a number of standards for fasteners like : -
IS 1363 :1967 : Black hexagon bolts, nuts & lock
nuts (dia 6 – 39 mm)

11
 IS 1367 : 1967 : Technical Supply Conditions for
threaded fasteners
IS 4260 – 1967 : dimension of lengths and thread
lengths for bolts, Screws and Studs.
IS 4172 – 1967 : dimension of redials under the
head of bolts and nuts etc.
IS 6623 – 1972 : high tensile friction grip nuts, etc.

Technology and Operational Issues:

• What technology will you employ?
• Where are you in terms of R&D on the
products/services?
 • Will production be handled by you or
outsourced?

12
4.PRODUCT/SERVICE MARKETPLACE:
• Describe each product or service
you will be selling (what it is and isn’t – describe
the product fully and provide pictures or a
brochure in the appendix if you can). Begin to sell
your idea here
by generating some excitement about your product
or service. This needs to be very clear. If the
reader doesn’t understand what you do, then it will
be difficult to evaluate the rest of your plan.

13
• Discuss the application (what it does) of the
product or service and describe the primary end
use as well as any significant secondary
applications (who will use it and why).
• Provide a diagram of the intended depth and
breadth of your product/service mix and which
products will likely generate the lion’s share of the
revenue
• Emphasize any unique features of the product or
service and how these will create or add
significant value; also, highlight any
differencesbetween what is currently on the
market and what you will offer that will account for
your market penetration. Be sure to describe how
value
will be added to the customer.
• Include a description of any possible drawbacks
(including obsolescence or ease of someone
else copying the product or service.
• Discuss any head start you might have that
would enable you to achieve a favored or
14
entrenched position in the industry e.g. proprietary
rights (patents, copyrights, trade secrets or non-
compete agreements. Describe the key factors
that dictate the success of your product/service.
Describe any features of the product or service
that give it an “unfair”
advantage over the competition e.g. proprietary
knowledge or skills.
• Discuss any opportunities for the expansion of
the product line or the development of related
products or services. Emphasize opportunities and
explain how you will take advantage of them.

5. MARKETING STRATEGY:
The products have a good demand in
local market. Transportation industries like
bicycles, automobiles, body builders, aircrafts etc,
building activities such as construction areas,
electrical industries and other heavy and light

15
industries are the common customers. Hence the
marking of these products will not be a tough.

A lot of scope is there for

manufacturing of the instant product considering
the domestic as well as in the International Market.
The new industries need of intervention by means
of the availability of technology, rawmaterial price,
quality, standardization and skilled manpower
before penetrating into the proposed activity. The
nuts and bolts business in India is expected to size
to about Billion by 2023.
The mounting demands of the
automobiles and construction industries are
expected to expand the global nuts and bolts
making business by 5.5 percent by the year 2026.
Asia alone is expected to give a major boom to the
nuts and bolts businesses in the coming 4 – 5
years adding up about $7.5 Billion to the fastener
manufacturing industry.

16
6. ORGANIZATION AND STAFFING:
The acura’s online sales campaign
is not anticipated to significantly affect the
organizational structure of the company.There
are,however,several staffing addions required to
successfully implement the onlinesales campaign.All
of these positionswill workwithin existing
departments and report to department managers.

Working Capital (per month)

17
 7. SCHEDULE :
IMPLEMENTATION SHEDULE :
Preparation of detailed project report - 1 Month
Provisional registration - ½ Month
Sanction of Term Loan - 1 Month
Acquisition of Land - ½ Month
Civil Construction - 1 Month
Procurement of machine and equipment - 1 ½
Month
Arrangement of utilizes - ½ Month
Procurement of raw materials - ½ Month
Erection, installment and electrification - 1.5
Month
Recruitment of stall - ¼ Month
Commission of train run - ¼ Month
Commercial production - ¼ Month

18
 8.FINANCIAL ASPECTS:
1. Fixed Capital :
 Land and building :
Total Covered area : 300 sqm. Rent Rs.
10000 p.m.
Build up area : 120 sqm.

 Raw Material (Per Month) :

Utilities (per month) :

 Machinery & Equipments (Indigenous) :

19
20
9.FINDINGS AND RECOMMENDATIONS:

10. FINAL ANALYSIS:

21
22
NAME & ADDRESS OF PLANT & MACHINERY:
1. M/s Westman Engg. (P) Ltd. Dumdum Road, Kolkata
2. M/s Macro Furnaces (P) Ltd, Faridabad (Haryana)
3. M/s Wellmake Engg. Corpn. Ltd., Mayapuri Phase –
IB-104, New Delhi
4. M/s Patel Furnace & Forging (P) Ltd, A2/510, GIDC
Estate Makarpura, Vadodra.
5. M/s Metatherm Furnace Pvt. Ltd.
6. M/s High-Temp. Furnace Pvt. Ltd. 1-C, II-Phase,
Peenya Industrial Area, Post Box
No. 5809, Bangalore – 560058.
7. M/s. Blue Steel Engineers Pvt. Ltd.
Blue Steel House, D-12 MIDC, Marol Ambhri (East),
Mumbai-400 073
23
8. M/s. Inspection Instruments Corpn.
Sherif Douj Street, Zakaria Bldg.,
Mumbai-400 003.

24
 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 ACURA NUTS & BOLTS MANUFACTURING

Name of business/project M.S. AND HIGH TENSILE NUTS AND BOLTS

ADYAR, CHENNAI-600020
Location

Type of Organization
PROPRIETARY
(Proprietary Partnership)

NO-, ACURA INDUSTRIAL ESTATE,

Address (with Phone, e-mail)
ADYAR, CHENNAI-600020

M.KUMAR
Name of the Chief Promoter(s)

22/03/1993
Date of Birth
NA
Names of Partners

25
1.1. EDUCATIONAL QUALIFICATION:

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

SSLC GOVT. HR. SEC. SCHOOL 2008

HSC GOVT. HR SEC SCHOOL

2010
DIPLOMA ABC POLYTECHNIC COLLEGE MECHANICAL
2013

1.2. SPECIAL TRAINING:

TRAINING IN INSTITUTE/COACHING DURATION ACHIEVEMENT/REMARK
CENTRE

AUTOCAD 2D & 3D DREAMS MEDIA SOLUTIONS 90 DAYS -

PRO-E/CREO H.R. CAD CENTRE 60 DAYS -

1.3. WORK EXPERIENCE (PAST & PRESENT)

Organization Position Nature of work Duration

SKM MOULDING SUPERVISOR MOULDING 3 YEARS

L.W NUT & BOLTS PLANT ASSISTANT

MANUFACTURING MANAGER MANUFACTURING 5 YEARS

26
1.4.

Promoter's Annual Income (Last Year) Rs. 10 Lakhs.

Assets owned by the promoter (s): Rs. 1.5 Lakh.

Movable

Immovable Rs. 25 Lakhs.

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

M.S. And High Tensile Nuts And Bolts

1.6. FINANCIAL GOALS:

a) To have a sales revenue amounting to Rs. 1,60,00,000 (per annum)

b) To obtain a profit margin of 25%

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

1.7. DESCRIPTION OF THE PRODUCT or SERVICE:

27
 Customer Service (can be covered here or in the OPERATIONS section):

• How will customer service be defined and measured?

• What systems will you have in place to manage customer service and ensure service levels are

consistent?

Warranty or Guarantee Policies:

If your company offers a product that will require service, warranties, or training, indicate the

importance of these to the customers’ purchasing decisions. Discuss your method of handling

service problems.

Describe the type and terms of any warranties to be offered, whether company service people,

agencies, dealers and distributors will handle service, or simply return to the factory.

Indicate charges for service calls and whether service will be a profitable or loss operation.

Compare your service, warranty, and customer training practices to those of principal

competitors.

1.8 IDENTIFICATION OF THE CUSTOMERS:

1) DAH-LIAN MACHINE CO.,LTD

2) CUSSA CORPORATION
3) RUNGU ENTERPRISE CO.,LTD.
4) ALLWIN ARCHITECTURAL HARDWARE INC.
5) AUDO ADVANCE CO.,LTD.
6) M.V. ENTERPRISE CO.,LTD.

28
1.9. IDENTIFICATION OF THE COMPETITION (Major competitors):

1)H.G. MANUFATURERS

2) L.M MANUFATURERS

3) BEST NUT & BOLTS MANUFATURERS

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

29
Payment Methods

Very user friendly

Customer Service

Others NII

1.11. MESSAGE TO BE COMMUNICATED TO THE CUSTOMERS:

THE COMPANY, CONCEPT AND PRODUCT(S) OR SERVICE(S)

a) The Company and the Concept

b) The Product(s) or Services(s)

c) Entry and Growth Strategy

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

MARKET POTENTIAL:

The demand of nuts and bolts is influenced by the following factors:

a)

30
Transportation industries, Railways,

aircraft, wagon, bicycles, automobile, body builders, etc.

b)

Electrical industries like manufacturing of

transformer, electric motors, fans etc.

c)

Building activities such as construction of

bridges, fabrication of various steel structures etc.

d)

Other heavy and light industries, steel and

wooden furniture, machine tools,

Agricultural machines and agricultural implements etc.

1.14. WORKING PROGRAMME:

No. of working days/annum : 300 Days

No. of working shifts (8 1/2 hrs.)/day; :2

Installed capacity (annual) : 70

Utilised capacity (%)

Year -1 : 70%

Year-II : 91%

Year-III : 100%

31
 Item(s) Sales (Service) Volume/Yr. Capacity Utilisation (%)
S.No

1. NUT&BOLTS 60 60

2. NUT&BOLTS 85 85

3. NUT&BOLTS 100 100

2.0. DETAILS OF THE PROPOSED PROJECT:

THE MARKETING PLAN

a) Overall Marketing Strategy

b) Pricing

c) The Selling Cycle

d) Sales Tactics, Advertising, Sales Promotions, Publicity

e) Customer Service, Warranty/Guarantee Policies

f) Distribution

DESIGN AND DEVELOPMENT PLAN (also called R&D)

a) Development Status and Tasks

b) Difficulties and Risks

c) Product Improvement and New Products

d) Projected Development Costs

e) Proprietary Issues/Intellectual Property (patents, licenses, copyrights, brand names)

OPERATIONS PLAN

a) Operations Strategy, Operating Model and Cycle (front stage and back stage)

b) Geographic Location and Physical Location Requirements

c) Facilities and Improvements/Equipment Requirements

32
d) Capacity Levels and Inventory Management

e) Legal Issues Affecting Operations

MANAGEMENT TEAM

a) Key Management Personnel and Responsibilities

b) Organization Structure, Management Compensation, and Ownership

c) Other Partners and Current Investors

d) Employment and Other Agreements, Stock Option and Bonus Plans

e) Board of Directors, Other Shareholders, Rights, and Restrictions

f) Supporting Professional Advisors and Services

2.1. LAND AND BUILDING:

S.No. Particulars Area required Total value Remarks

1. Land Rent Rent

2. Building 5000 Sq. ft. 8,00,000 Advance

2.2. MACHINERIES/EQUIPMENT:

33
2.3. MISCELENEOUS FIXED ASSETS:

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

1. VECHILE
3 - 5.50.000

34
 2. OFFICE ITEMS
7 - 2.50.000

3. COMPUTERS
5 - 3.00.000

4. OTHER ITEMS
3 - 4.00.000

TOTAL
15.00.000

2.4. PRELIMINARY AND PRE-OPERATIVE EXPENSES:

S.No Particulars Amount (Rs.) Remarks

Interest during implementation

1. 5.00.000 -

Establishment expenses
2. 3.00.000 -

Start-up expenses
3. 25.00.000 -

Misc. expenses
4. 7.00.000 -

TOTAL 40.00.000 -

2.5. WORKING CAPITAL:

Total Value (Rs.)

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

35
 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 7.00.000 35.00.000 45.00.000 50.00.000 55.00.000

Finished goods stock

3. 3 Months 6.00.000 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 12.00.000 12.00.000 13.50.000 15.00.000 17.00.000

Total 40.00.000 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) 2.04.00.000

2.
Working Capital (Sum of 2.5) (For 3 Months) 40.00.000

3.
Preliminary & Preoperative Expenses (sum of 2.4) 38.00.000

Total 2.82.00.000

2.7. MEANS OF FINANCE:

Particulars Amount (Rs.) Remarks

S.No

36
 -
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. HSFG BOLTS - - 5.75.00.000

2. NUTS & WASHERS - - 3.45.00.000

3. MILD STEEL NUT & - - 25.00.000

BOLTS

9.35.00.000
Total

4.1. RAW MATERIAL (ANNUAL) REQUIREMENT:

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

37
 1. All Raw Material - -
6.50.00.000

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.)

38
 1. Machinery Annual Maintenance Charges 55.000

55.000
TOTAL

4.5 SELLING AND DISTRIBUTION EXPENSES:

S.No. Particulars Amount (Rs.) Remarks

1. Publicity expenses 15.000 -

2. Travelling 1.50.000 -

3. Freight 70.000 -

4. Commission 1.00.000 -

5. Miscellaneous 50.000 -

TOTAL 3.85.000 -

4.6 ADMINISTRATIVE EXPENSES

S.No. Particulars Amount (Rs.) Remarks

39
 Stationery & Printing
1. 17.000 -

Post/ telephone
2. 45.000 -

Entertainment Expenses
3. 20.000 -

4. Miscellaneous 12.000 -

TOTAL 94.000

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

40
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 950 1300 1600 1900 2100

B Cost of producing

1. Raw materials 450 585 760 988 1185

41
 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

42
43