A PRODUCT PROJECT REPORT

ON PAPAD
PREPARED BY
Prashant P Kandoliya

GUIDED BY
PROF.RADHIKA UMRANIYA

COLLEGE

SAHAJANAND COLLAGE OF IT &MANAGEMENT - GONDAL

AFFILIATED BY
SAURASHTRA UNIVERSITY,RAJKOT

ACADEMIC YEAR
2021 - 2022
ENROLLMENT NO
010201202773
CLASS
S.Y.B.B.A. SEM - 4
 DECLARATION

I, undersigned Kandoliya Prashant P a student of S.Y.B.B.A.

From Sahajanand Collage Gondal here by declare that the project work
presented in this report is my supervision and guidance of Radhika Umraniya

This work has not been preciosity submitted to any other

institutions or university for any examination.

Place: - Signature
Date: - (Prashant Rajput)
 PREFACE

B. B. A. degree is concern with the study of business

administration of various activities in India industries of all kinds need
good trained administration so this course is offered by Saurashtra
University.

The unit selected is " Mahii Papad Pvt.Ltd” it is a food base

industry. In our country papad is a one of the main food of some
country.

The purpose of this report is to present the necessary background

in creation on industry and know of the running of ban industry. The
practical approach of the implementation of management aspects in this
industry is the matter of bearing of the B.B.A. students.
 ACKNOWLEGEMENT

It is my great pleasure at a time of presenting this report in front

all the concern authorities.

I am very thankful to all at them who helped me at any place,

directly or indirectly. There are many people who play great role in my
achievement. So especially I would like to thanks those people who
have helped me in competition of my project work.

Firstly I would like to thank my parents. Without their response

I can’t do anything. They help me and guided me by every way and
continuously motivated me for prepare this report.

I am thankful to all my teachers and specially Prof.Radhika Umraniya

who are very helpful to me at any time for ever.
 INDEX

Sr. No. Particulars Page No.

1 Introduction
2 Project at glance
3 Bio - data of promoter
4 Justification of location
5 Infrastructural Facilities
6 Product feature & it’s User
7 Detail of Land & Building
8 Detail of Plant & Machinery
9 Raw material & quality Control
10 Personnel
11 Technical Aspects
12 Inspection & quality Control
13 Production capacity
14 Basis & Assumption
15 Market
16 Financial Details
17 Detail of Sales
18 Cost of Production
19 Profitability Analyses
20 Ratio Analyses
21 Break even point
22 Risk factor
23 Conclusion
 1. INTRODUCTION

PAPAD is a population & tasty food item in Indian diet since

time immemorial. Papad is essential a wafer like product traditionally
circular in shape made from dough of powdered pulses, species & salt
etc……..

Percentage of pulses & spices differs in different varieties of

papad whish are made to suit to the taste of the people & the demand in
the market. Though traditionally it has been confined to the household
papad making in recent years, it has been developed in cottage & small
scale sector with the development of this with multifarious problems
such as quality of ingredient used, method of preparation, processing
and packaging & storage characteristics.

The central research institute, my sore has done some work on

there problems & has standardized a process to improve the quality of
papad which has enhanced the storage life of product.

//1//
 2.PROJECT AT GLANCE

Name of the unit: - Mahii Papad Pvt.Ltd.

Address: - Mahii Papad Pvt. Ltd.

Plot No. 2322-23-24,

Road-F, Gate No. 2, Metoda G.I.D.C.,

Tal. Lodhika,, Rajkot-360021,

Gujarat, India
Form of an organization: - Sole – proprietorship
Product: - MAHII ADAD PAPAD
Category of industry: - SSI
SSI Registration No.: - Apply for ..........
Cost of the Project: - 17.10 lakes
Production Capacity: - 60m. Tones (per unit)
No. of Shifts: - Single shifts
No. of working days: - 300 days
Expected Growth Rate: - 41%
Loan Assistance: - Bank of India
Quality Standard: - Relevant is Specification is: 2639-1984

//2//
 3.BIO - DATA OF PROMOTER

Full Name: - Mr. Prashant P Kandoliya

Age: - 20 Years

Address: - Mahii Papad Pvt. Ltd.

Plot No. 2322-23-24,

Road-F, Gate No. 2, Metoda G.I.D.C.,

Tal. Lodhika,, Rajkot-360021,

Gujarat, India

Resident: - PRASHANT KANDOLIYA

AT- AMARNAGR ,

TA-JETPUR , DI-RAJKOT

GUJARAT - 364485

Academic Qualifications: - B.B.A.

Role in the unit: - Marketing & Production Department

Financial Contribution: - 100%

Experience: - Fresh
//3//
4.JUSTIFICATION OF LOCATION

Mahii Papad Pvt. Ltd.

Plot No. 2322-23-24,
Road-F, Gate No. 2, Metoda G.I.D.C.,
Tal. Lodhika,, Rajkot-360021,
Gujarat, India

The main due consideration for locating the plant in Rajkot

is that over there are not much more competitors running the
papad industry. And one of the main important factors is to easy
availability of raw material. As we know that in day to day eatable
items, papad is a very important part. Easy availability of human
resources is also one of positive factor to locating this type of industry,
in the papad industry women always plays better role to make more and
accurate production. So, by from these factors I come to know that in
Mandavi place papad manufacturing can play a better role in profit
maximization and to create more employment. During the market
survey I came to know that for the establishment of papad industry
Rajkot area to Ahamdabad can play a major role, that’s why, I have decided
to produce papad.

Hence, there is less number of competitors in the Rajkot market,

especially, for the papad based industry, I established the industry over
there and I am sure it can also fruitful to the market.
//4//
 5.INFRASTRUCTURAL FACILITIES

(1). The industrial sheds of GIDC are fully equipped with facilities
like electricity, telephone, water, transportation etc.
(2). Skilled & semi skilled workers are available from Rajkot
surrounding arrear.
(3). The demand of papad is increasing day by day in Gujarat &
other neighbor state. So, Rajokt is the best for the commercial
purpose.
(4). The experience of advertisement & publicity etc. is better
medium in Rajkot.

The infrastructure facilities are best for the unit inception in

because each an every facilities are provided easily in the industrial
estate. So it will easily for establishing small scale industry like
Rajkot.
6.PRODUCTION FEATURES & IT'S USER

The production is a key element in market offering. The

production features and quality the services etc. are offered
appropriateness. The product halls that offer the best quality best
performance & best initiative features in product oriented organization
focus their energy on making products superior & improving them
overtime.

Papad is essentially wafer like product, traditionally circular in

shape made from dough of powdered pulses, species & salt etc.

The demand of papad is increasing day-by-day due to

urbanization & improvement in the standards of living of the masse
especially in the metros. There is a good potential for good quality of
products competitive price in the Indian market. The experiments have
shown that advertisement publicity etc.

USES: - it is mainly used in eating purpose papad is a popular &

tasty food items in Indian die since times immemorial.

//6//
 7.DETAILS OF LAND & BUILDING

Land 500 sq. mt. @ Rs. 100 sq. mt 50000=00

Built-up area 200 sq. mt. @ Rs. 1800 sq. mt. 360000=00
(Raw material & finished goods store processing hall, office etc...)
TOTAL 410000=00

//7//
8. DETAILS OF PLANT& MACHINERY

Sr no. Description Qty Price

1. Grinder cap 20 to 40 kg. / hr electric 1 No. 21000
power- SHP
2. Mixer cap 25 kegs per charge electric 1 No. 18000
power 1.5 hp
3. Papad press @ Rs. 4500 each 2 No. 9000
4. Platform balance 1 No. 5000
5. Sealing machine( temp. impulse 1 No. 7000
controls sealing length unto 30 cm &
seal with 3 m)
6. Marble top table 10000
7. Drier with trolly & trays heating 65000
element – 9 kw
8. Water storage tank cap- 5kl 1 No. 15000
9. Aluminum trays ( extra) 50 Nos. 10000
10. Misc. equipment such as baskets, 15000
drums racks, aluminum utensils,
wooden tubes etc.
11. Laboratory equipments 25000
12. Pollution control equipment 25000
TOTAL 225000
A. Packaging, forwarding, taxes, 22500
insurance charges etc @ 10%
B. Erection & electrification @ 10% 22500
C. Office furniture & fixture 25000
a. preliminary & pre//8//- operative
15000
expenses
TOTAL FIXED INVESTMENT 720000
 MACHINERY

FOLUR MACHINE

FLOWING MACHINE
Automatic-Dough-Roller

Auto-Papad-Machine
PaKink Machine
9. RAW MATERIAL AND QUALITY CONTROL

No. Particulars Qty Rate Value

(Rs.) (Rs)
1. Dal / Flour Dal 5000kg 11rs 55000
2. Salt, Spices, oil, chemicals, 6000
preservations etc
3. Packaging materials 5000
(polythene bag, cartons etc)
TOTAL 66000

//9//
 10.PERSONNEL

Designation No. Salary(Rs) Total(Rs)

Manager 1 3000 3000
(P.m.)
Accountant 1 1800 1800
(p.m.)
Clerk/ Typist/ Store 1 1500 1500
Keeper (p.m.)
Salesmen 2 1500 3000
(P.m.)
Peon – cum- Watchman 1 700 (P.m.) 700
TOTAL 10000

TECHNICAL & OTHERS

Supervisor 1 2000 2000

(p.m.)
Skilled Worker / 1 1500 1500
operator
(p.m.)
Unskilled Workers 3 700 2100
(P.m.)
Sweeper (Part time) 1 300 300
(P.m.)
TOTAL 5900
TOTAL ADMN. & 15900
TEC.

//10//
 11. TECHNICAL ASPECTS
* PROCESS OUTLINE

PAPAD may be manufactured with one of Dal or with the

combination of Dales. Good quality papad can be made using 100 parts
of black grain flour of 85 meshes, 45 parts of water, 9 parts of common
salt and 1-10m parts of sodium bicarbonate.

As per recipe, weighed quantity dispersion of common salt and

bicarbonate in requisite quality of water is added and the whole contents
are kneaded at minimum speed to set homogenous lump pf therefore
dough. After 30 minutes resting it is divided into balls of about & cm.
dia. Weighing 5.6 Gms. There are rolled into thin circular dices of about
1 him thickness using papad press or rolling pin. Corn starch may be
used as dusting material to prevent sticking during rolling. The papads
are usually dried in drier or sun dried. The dried papads generally
contain 14-15% of moisture and then packed in polythene bags.

//11//
12. INSPECTION AND QUALITYCONTROL

1. QUALITY SPECIFICATION
The bureau of India standards has down specification for papads
as: is: 2635-1984

2. PRODUCTION CAPACITY (PER ANNUAL)

Qty ------ 60mt
Value ------- Rs 17, 10,000
3. MOTIVE POWER REQUIREMENT
20 kW
4. POLLUTION CONTROL NEED
The process of manufacture is none polluting. However small
provisions have been made for treatment of water before discharge. The
entrepreneurs may however to contact state pollution control board for
detailed guidance in the matter.
5. ENERGY CONSERVATION NEED
In electrical installation motors should be used and properly
installed.

//12//
 13. PRODUCTION CAPACITY

The expected capacity utilization double basis for 300 days

during first years & second year of operation is 60% & 80%
respectively. The unit expected to achieve full capacity utilization from
the 3rd year onwards.

Particulars 1 2 3
60% 80% 100%
Papad 36mt 46mt 60mt
Total amt. 1080000 1440000 1800000

//13//
 14. BASIS AND ASSUMPTIONS

(1) This project is based on single shift basis and 300 working days in
a year.
(2) The costs of machinery and equipments materials indicated refer to
a particular make and the price are approximate to those ruling at the
time of the preparation of the scheme.
(3) Non refundable deposits project preparation cost trail production
fees etc. are considered under pre-operative expenses.
(4) The cost of installation and electrification is taken @ 10% of the
cost of machinery equipment.
(5) Depreciation has been taken on:
Building @ 5%
Plant & machinery @ 10%
Office furniture & fixture @ 20%
(6) Interest on total capacity investment has been taken @ 20% p.a.
(7) Minimum 40% of the total investment is required as margin money.
(8) Payback point of the project will be 7 years with yearly installment.
(9) Breakeven point has been calculated on the full capacity utilization.

//14//
 15.MARKET

Demand of papad has also increased manifold in foreign

countries especially where the Indian immigrants have settled down. As
per A.P.E.D.A. the average annual export (1985-1990) is Rs. 6.30cr
which contributes 10/10% of processed products.

In view of the above it is envisaged that there is a good scope for

the development of papad making industry especially in the backward
areas to generate more employment opportunities and to meet the
demand of the urbanized market besides exports.

//15//
 16.FINANCIAL DETAILS

Sr. No. Content Page No.

1 Fixed Capital
2 Working Capital
3 Total Capital Investment
4 Sources Of Finance
5 Utilities
6 Other Expenses
 A.FIXED CAPITAL

1. Machinery & Equipment

Grinder 21000
Mixer 18000
Papad Press 9000
Platform balance 5000
Sealing machine 7000
Marble top tables 10000
Drier with trolly and trays 65000
Water Storage tank cap-5kl 15000
Aluminum trays (extra) 10000
Misc. equipments 15000
Laboratory equipments 25000
Population control equipment 25000
TOTAL 2, 25,000

2. Office furniture and fixture 25000

3. Land & building 4, 10, 000
4. Erection and Electrification 22500
5. Packaging forwarding taxes 22500
6. Preliminary and pre-operative exp. 15000
TOTAL 7, 20, 000

//17//
 B. WORKING CAPITAL

1.PERSONNEL
a) Administrative 6300
b) Workers 3700
c) Technical & other 5900
TOTAL Rs. 15900
2. RAW MATERIAL & COMPONENTS
a) Dal / flour Dal 55000
b) Other ingredients 11000
(Salt, Spices, oil, chemical, preservatives etc.)
TOTAL Rs. 66000

3. UTILITIES
a) Power 3200
b) Water 200
TOTAL Rs. 3400

4. OTHER CONTINGENT EXPENSES

a) Postage and Stationary 500
I) consumable Stores 500
b) Repair and Maintenance 500
c) Transport Changes 1000
d) Advertisement and Publicity 500
e) Insurance, Taxes, Telephone Bill,
etc 500
Other unforeseen Expenditure 1500
TOTAL Rs.5000

TOTAL WORKING CAPITAL Rs. 90300

//18//
C.TOTAL CAPITAL INVESTMENT

1. Fixed Capital 720000

2. Working Capital 270900
TOTAL 990900
Round off to say 991000

D.SOURCES OF FINANCE
DETAILS AMOUNT (in Rs)

Borrowed Capital 6, 91,000

Owned Capital 3, 00,000
TOTAL 9, 91,000

Borrowed capital includes financial help taken from bank of

India of Rs. 6, 91,000 at the rate of 12% interest.

E.UTILITIES
Power 3200
Water 200
TOTAL 3400
 //19//
F.OTHER EXPENSES

A provision made of around Rs. 5000 to Rs. 6000 for the other contingent
expenses of it is clear to have such type of contingent to deal in future without any
type of complexity of may the business run in smooth way.
Details (p/m) Amount (Rs)
Postage and Stationary 500
Consumable Store 500
Repair and Maintenance 500
Transport Charges 1000
Advertisement & Publicity 500
Insurance, Taxes, Telephone Bill etc. 500
Other unforeseen expenditure 1500
TOTAL Rs. 5000

//20//
 17. DETAILS OF SALES

The annual turnover on per annum is classified under following

heads: -
Item Qty. Rs. (Rate) Total
(Rs.)
PAPADS 60mt 3000 Per month 1800000
Less: - (-) 90000
5% Sales commission
market expenses etc.
TOTAL 1710000

//21//
 18. COST OF PRODUCTION

COST OF PRODUCTION (Per Year) VALUE (Rs.)

Total recurring expenditure per year 103600
Depreciation on building @ 10% 18000
Depreciation on machinery & equipments @ 10% 22500
Depreciation on office furniture & fixture @ 20% 5000
Interest on total investment @ 20% 198180
TOTAL 1327280
 19. PROFITABILITY ANALYSIS
Net profit before income & tax
Detail Amt (in Rs.)
Annual turnover 1710000
Less: - Cost of Production 1327280
TOTAL 382720

20. RATIO ANALYSIS

1. Net profit Ratio: -

Net profit Ratio = Net profit before income and tax * 100
= (382720 * 100)/1710000
//22//
= 22.38%
Thus, the net profit Ratio is 22.38%

2. Rate of Return: -

Rate of Return = (Net Profit / Total Investment) * 100

Total Investment = (fixed capital + Working capital)
= Rs. 720000 + Rs. 270900
= Rs. 990900
Rate of Return = (383000 / 990900)* 100
= 38.65%
Thus, the rate of Return is 38.65
 21. BREAK EVEN ANALYSIS

(1) FIXED COST VALUE (Rs.)

Depreciation on building 18000
Depreciation on machinery & equipment 22500
Depreciation on office furniture & fixture 5000
Interest on total investment 198180
40% of salary & wages 76320
40% other contingents 14400
Insurance charges, tax etc 6000
Marketing & advertisement 6000
Min power charges 12000
TOTAL 358400
(2) NET PROFIT PER YEAR 383000
Break even point
Fixed cost* 100 48.34%
358400*100
741400

//24//
 22. RISK FACTORS

It is truly said, “The world is a book. Every step, we take

open up a new page for us.” Competition and innovations are increasing
day by day.

1.) The industry may face tough competition from existing units like
Lijjat, Suraj etc…..
2.) The industry will bear the loan liability of Rs. 150000
From bank of India ICICI
3.) Changes in government policy or restriction on raw material
acquisition may considerably affect probability of the industry.
4.) In the initial years, industry will demand substantial efforts, time
and money in exploiting markets; however it has promising markets all
over India
 23. CONCLUSION

As such we as a citizen of India having some responsibility to

uplift the economic level and also make the life more and more
compatible.

In view of above all information which can have the best way to
get comfort in the life of all household work. In earlier time, papad is
being prepared at home and it is consider as time consuming & wastage
of energy. But now with the introducing the ready made papad now it
is easily to bake the papad whenever you want to eat.

Thus, we are feeling great pleasure to make the product in front

of you and so expecting move response from market& trying to
satisfying the prospecting customer.