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A PRODUCT PROJ ECT REPORT <br />ON<br />1019175482600<br />PREPARED BY            :-  Vaja Rajesh P. <br />STANDERED              :- M. B. A. – 3rd Sem.S<br />YEAR                           :-      2010 – 2011.<br />ROLL NO.                               :-   97<br />                 <br />S U B M I T T E D   T O -<br />N.R.V.I.B.M.S.<br />G U I D E D   B Y -<br />Dr. Rajesh Patel<br />DECLARATION<br />I, the undersigned “Vaja Rajesh P.” the student of M.B.A. hear by declare the project work presented in this report is my own work and has been carried out under the guided by Prof. Dr.Rajesh Patel of N.R.Vekariya college of Gujarat Techanology University.<br />To the best of my knowledge, this work has not been previously submitted to any other university for any examination.    <br />Date:- 25-11-2010       Signature<br />Place: - Junagadh               (Vaja Rajesh P.)<br />ACKNOWLEDGMENT<br />It is really a matter of gratification for me to prepare a Product Project Report. At this stage project report is an essential part of learning and entrepreneur prepares it before he starts his actual firm, project report is very helpful developing entrepreneurial skill. It makes the entrepreneur aware about the aspects, which are to be considered, and giving important when starting a new firm. It considers all aspects from registration of the firm to the forecasting of future profit and allocation of resources. And this report would not been prepared without help of a few people.<br />And also I heartily thanks towards to my professors, my project guide, and my almightily my god, parents and my classmate for providing me the moral support to complete the project work successfully. I thank him for giving me advice, valuable guidance and encouraging me.<br />Last, but not least I thankful all those people who helped me directly or indirectly to get necessary information during preparation of this report.<br /> <br />       <br />Date:-25-11-2010       Signature<br />Place: - Junagadh                (Vaja Rajesh P.)<br />PREFACE<br />As a part of M.B.A., syllabus we have to prepare a product project report of any product, which is under small-scale industry. The aim of preparing such a Report is to make aware each and every aspect, which has to be considering while commencing a firm. This work of making report provide us the guideline that, what are the essential featured to be considered while studying a small business and it is also useful for the students who want small unit after completion  of M.B.A. and it is also urgent need for substituting the rational management techniques by specific system of management. Proper implementation of these techniques provides necessary inputs to SSI in right direction at a right time.<br />I have selected Wafer Biscuit because I think there is a good market for Wafer Biscuit and there are also future prospects of exploiting the market.<br />For preparing this report I have referred various projects, advertisements, catalogues and taken guidance from persons too. I have tried my best and cover all the relevant points and also have tried to give it in most precise yet systematic manner but if there is any oversight made by me in this report then I am extremely sorry for that and welcome your valuable suggestion.  <br /> lt;br />                  Signature<br />  (Vaja Rajesh P.)<br />INDEX<br />SR.PARTICULARSPG.NO.1Project at Glance62Justification Of Location123Manufacturing Process        174Financial Detail20<br />1 :- PROJECT AT GLANCE<br />Name of the unit:- PUPPY wafer biscuit<br />Address: - 2, Metoda G.I.D.C., Phase no. 11<br />                                                                         Gate no: - 3, Metoda. Dist. Rajkot<br />                                                                         Ph.- (02827) 257222/23.<br />                                                                         Fax  (02827) 257326.<br />                                                                         E-mail- puppy@yahoo.com<br />Type of the unit  :- Partnership firm register under <br />     Partnership act. 1932<br />Partners             :- 1) Vaja Rajesh P.<br />     2) Gor Bhavin  H.<br />SSI Registration no.  :- Application has been made<br />Subsidy Registration No. :- Application has been made<br />Type of industry           :- Food industry<br />Production:-  400 Tones<br />Fixed capital            :- 31,71,000<br />Total capital:- 54,58,440<br />Working capital:- 19,87,440<br />Return on capital:- 34.17%<br />Break-even point:- 49.18%<br />PARTNER’S BACKGROUND<br />PARTNER - 1<br />Name:-  Vaja Rajesh P.<br />Age:-23 years<br />  <br />Address:-      “Shree Hari”<br />          5-Punchvati Soc. ,                                                 Kalawad Road,<br />                   Rajkot 360 005<br /> <br />Qualification:- M.B.A. ( Contd.)<br />Specialization:- Finance<br />Financial contribution:- 50 %<br />PARTNER - 2<br />Name:- Viroja Hiren M.<br />Age:-23 Years.<br />  <br />Address:-    “Sagar”<br />2-Geetanjali Park,<br />Rajkot-360002.<br /> <br />Qualification:- M.B.A. ( Contd.)<br />Specialization:- Marketing<br />Financial contribution:- 50 %<br />PRODUCT & its USES<br />Wafer Biscuits are made from wheat flour and some other ingredients are added depending upon the variety to be produced. They are of many sizes, varieties and flavors. Wafer biscuits would have two wafers - like layers and cream will be stuffed between these two layers to form a sandwich-like biscuit. This is a versatile product with good market prospects.<br />Today the production of wafer biscuit in the country is estimated 15 lakh tones of which organization sector accounts for 1.75 lakh tones and the balance of small scale has played a dominant role in meeting the increasing demand as the manufacturing of wafer biscuit is reserved for the small sector.<br />Wafer biscuit are used as snack breakfast and it continues considerable share in ice cream cones and also many other ways. The wafer biscuit are produced in large amount. <br />MARKET POTENTIAL<br />The consumption rate of wafer biscuits is increasing considerably and also the popularity of the snake food is growing day by day wafer biscuits have emerged as potential snack food. It also has become part of breakfast and ice cream. There is no. of organization as well as unorganized groups are already there is in market catering to the need of the house, railway and canteen cinema, airport etc. and the many other places still there is huge amount of the demand for this product. In interior and remote placed in different parts of country.<br />The data and its analysis revels that wafer biscuit have good market and there are further possibilities of expanding and exploiting market.    <br />2 :- JUSTIFICATION OF LOCATION<br />Location is the prime factor to be considering for starting a new business. The location should be decided by considering all factors and making independent analysis of each variable separately through cost benefits. It is also said that looking to the product and its use the district headquarters will be ideal for the location of this project.<br />Rajkot is proper in all this aspect. The actual place of the location is quite suitable and appropriate in all respect for our product. Following are the reason for selecting the location.<br />Market :-<br />From marketing point of view, we have best and encouraging market for our product. Market for wafer biscuits is increasing day by day and it is also used by different people different time and different places and it is also available for very reasonable cost.<br />Labor:- <br />Labor is prime important foe any business. In Rajkot, there is no problem about labor because as skilled and unskilled labor is easily available and also available at cheaper rate.<br />Transportation :-<br />Transportation is also necessary for any business. As we know Rajkot is big city so transportation facilities available easily. We have the hired some vehicles for delivery of biscuits.<br />Raw material :-<br />There is no problem of raw material for wafer biscuits. The main raw material for wafer biscuits are maida and sugar, which is easily available for all places.<br />Availability of infrastructure Facilities :-<br />All I facilities like water, electricity, telephone, telegraph, postage etc are easily available is for this location.<br />Other facilities :- <br />Large number of facilities can be easily available here such as subsidy, loans at cheaper rates and many more facilities this developing area.<br /> <br />                                             MARKETING STRATEGY<br />Thus, the market is very vast and scattered. Yet another positive aspect is increasing rural and semi-urban markets. Some of the national brands are very well established but there are hundreds of local or regional brands catering to the vast market and a new entrant would have to ace this local competition. Good quality and competitive price coupled with well-organized marketing network shall be the critical aspects.  <br />Quality Commitment<br />Quality is the central theme of our business model. It binds together all our activities with the final goal of providing our consumers the benefit they expect from our brands at most affordable prices. We establish exacting standards to define acceptability of material inputs and end products. These standards are strictly met via exclusive dealings with vendors and service providers with proven capabilities to meet our stringent expectations.<br />These are managed by highly proficient, motivated and empowered quality vigilance teams who ensure that stipulated quality goals are routinely met.   Quality programmers at our principal manufacturing locations conform to the ISO 9000 code. These have been evaluated and validated by independent accreditation agencies. As a conscious step to further refine our quality capabilities and enhance results, we have adopted detailed TQM practices.<br />Manufacturing Facilities<br />IFFCO believes in delivering consistent value to the consumer by investing in technologies that provide high quality solutions. In keeping with this philosophy, consumer interests are the basis for our selection of production processes. This has resulted in state-of-the-art, highly reliable process equipment and facilities. All of these operate under accurate and sophisticated computer-based control systems and are sourced from world leaders in their fields. <br />At IFFCO emphasis is placed on automating all possible aspects of our operations using current generation advances in electronics, communications and information technology. Our ERP (Enterprise Resources Planning) software integrates all business processes into a unified whole. This system yields a quantum jump in productivity and efficiency of information flow in all aspects of production, marketing, finance, service, transportation and projects. A solid base in our core business segments allows us to realize complete value from primary material inputs through production of a wide variety of related derivatives and intermediates. These find applications in a whole host of industries such as soaps and toiletries, baking, foodservice and animal husbandry. <br />3 :- MANUFACTURING PROCESS<br />It is conventional and simple. Various ingredients like wheat flour, starch, sugar, salt, soda, vanaspati, preservatives, flavors and colors etc. can be procured from sources. Initially, wheat flour, starch, salt, soda etc. are mixed with water in a mixer and paste is formed. This paste is poured into pre-heated moulds and wafer-like sheets are baked. Simultaneously cream is prepared in the planetary mixer by mixing sugar, vanaspati, essence, colors and flavors and this cream is spread on baked sheets to make sandwiches. Finally, they are cut into required size and packed. The process flow chart is as follows:<br />Mixing of Ingredients<br />Formation of Paste<br />Baking<br />Cooler<br />Preparation & spreading of cream<br />Cutting<br />Packing<br />COMPETITORS<br />Competitors means other companies who are selling or manufacturing  same goods as we.<br />This company have some competitors in the state like some of the company is manufacturing  wafer biscuit.<br />But there is no direct competition as market have very much potential for product.<br />There are many competitors are as below :<br />,[object Object]
Park choco ltd.
Joyes
munchTENTATIVE IMPLEMENTATION SCHEDULE<br /> <br />ActivityPeriod (in months)Application and sanction of loan2Site selection and commencement of civil work1Completion of civil work and placement of orders for machinery3Erection, installation and trial runs1<br />4.<br />TENTATIVE IMPLEMENTATION SCHEDULE<br />SR.DESCRIPTION OF EXPENSESCOST1Land10,00,0002Building15,00,0003Furniture3,00,000TOTAL28,00,000<br />MACHINERIES & EQUIPMENTS<br />SR.NAME OF MACHINERYQTY.RATECOST1Flour suffer310,00030,0002Planetary type mixer(Cap. 100Kg. / Hr.)312,00036,0003Automatic Biscuit cutting &Punching Machine Fitting with Totally molder260,0001,20,0004Electronic Banking oven conveyer245,00090,0005Machine for sweet cream biscuit119,50019,5006Cooking conveyer145,00045,0007Oil spray120,00020,0008Try trolleys and other accessories etc.28,00016,0009Packing machine123,50023,500Total4,00,000Add electrocution,Installment etc.25,000Total4,25,000<br />PRELIMINARY AND PRE-OPERATIVE EXPENSES<br />SR.ParticularsCOST1Lab. Equipment50,0002Electrification and installment78,5003Cost of tools / Fixtures30,5004Cost of office equipments12,0005Legal expenses10,000Total1,81,000<br />FIXED CAPITAL STATEMENT<br />SR.ParticularsCOST1Land & Building25,00,0002Machinery & Equipments 4,25,0003Preliminary Expenses 1,81,0004Computer with printer65,000Total31,71,000<br />REQUIRED OF RAW MATERIAL (Per Month)<br />SR.ParticularsQty. (In Rs.)Rate(Kg.)Total1Maida Flour12,000182,16,0002Sugar3,0001545,0003Vegetable flat4,0001456,0004Misc. item4,000251,00,000-Milk powder-Salt-Yeast-Edible color-Flavor-Golden system-Chemicals5Packing material40,000Total4,57,000<br />MAN POWER REQUIREMENT (Per Month)<br />SR.ParticularsNo.RateAmount(Rs.)(A)Administrative Staff 1Factor Manager112,00012,0002Sales Manger19,0009,0003Accountant27,00014,0004Store keeper13,5003,5005Clerk Cum Typist022,2504,5006Sales Man32,5007,5007Peon31,8005,400(B)Technical staff1Production Manager15,0005,0002Production Supervisor24,0008,0003Lab. Assistant13,5003,5004Skilled worker53,00015,0005Plant Maintenancessupervisor cum chemist  13,5003,5006Unskilled workers152,50037,5007Sweeper210002,000Total1,30,400Add.:- perquisite @ 25%26,080Total1,56,480<br />OTHER EXPENSES<br />SR.ParticularsAmt.(Rs.)1Electricity12,5002Fuel3,0003Postage & Stationary1,0004Telephones4,5005Consumable stores 3,5006Advertisement & Publicity14,0007Transportation Charges7,0008Repairs & Maintenance3,500Total49,000<br />WORKING CAPITAL REQUIRED (Per Month)<br />SR.ParticularsCOST1Raw Material ( 4,57,500 * 3 )13,71,0002Salary (1,56,480 * 3)4,69,4403Other Expenses ( 49,000 * 3 )1,47,000Total19,87,440<br />TOTAL CAPITAL INVESTMENT<br />SR.ParticularsCOST1Land 10,00,0002Building15,00,0003Furniture3,00,0004Machinery & Tools 4,25,0005Preliminary Exp. 1,81,0006Computer with Printer65,0007Working Capital  (For 3 months)19,87,440Total54,58,440<br />OPERATIONAL SALES EXPENSES<br />SR.ParticularsMonthly costYearly cost1Advertising & Display5,00060,0002Samples1,20014,4003Traveling Exp. 1,50018,000Total92,400<br />SOURCES OF FINANCE (Per Month) <br />SR.ParticularsCOST1Owners Contribution 25,00,0002Long Term Loan ( IDBI )10,00,0003Bank Loan8,00,000Total43,00,000<br />DEPRECIATION<br />SR.ParticularsValueRate of Dep.Cost1Plant & Machinery4,25,00012%51,0002Land10,00,00010%1,00,0003Building15,00,00010%1,50,0004Furniture3,00,0007.5%22,500Total3,23,500<br />Depreciation will be charge at straight-line method. Pre expense will be written by1/10th portion every year.<br />COST OF PRODUCTION (Yearly)<br />SR.ParticularsCOST1Yearly Requirement of working capital (19,87,440 * 3)59,62,3202Total Depreciation3,23,5003Int. on fixed capital On owners capital @ 10%2,50,000On loan from IDBI @ 12.5%1,25,000On Bank Loan @ 15%1,20,000Total67,80,820<br />ANNUAL FIXED COST<br />SR.ParticularsCOST1Int. on fixed capital 4,95,0002Total Depreciation 3,23,500340% of salaries (43,250 * 12 )7,51,104440% of other expenses (17,240 * 12 )2,35,200Total18,04,804<br />PROFITABILITY (Annually)<br />SR.ParticularsCOST1Income from sales 400 tones @ 25000 P.T.100,00,0002Less : cost of production67,80,820Gross Profit32,19,1803Less: operational sales expenses92,40031,26,7804Less : writes off portion of preliminary exp.18,100Profit before tax31,08,6805Less : Income tax @ 40%12,43,472Total18,65,208<br />IMPORTANT RATIO<br />1. Break even point (BEP):-   =<br />                                                        Fixed cost<br />X 100<br />Fixed cost + Profit<br />        =18,04,804<br />X 100<br />36,70,012<br />                  =49.18%<br />2. Return on Capital Investment:-<br />Profit after tax<br />=X 100<br />Total capital inv. <br />          =           18,65,208<br />X 100<br />54,58,440<br />=34.17 %<br />3. Gross profit Ratio: -<br />                                                           Gross profit <br />=X 100<br />Sales <br />=  32,19,180<br />X 100<br />             100,00,000<br />=32.19 %<br />4. Net profit Ratio: -<br />                                    <br />                                    =Net profit <br />X 100<br />Sales <br />                           18,65,208<br />    =X 100<br />100,00,000<br />         =18.65%<br />5. Return on sale: -   =<br />                                               Net profit <br />X 100<br />Sales <br /> 18,65,208<br />    =X 100<br />100,00,000<br />         =18.65%<br />NAME & ADDRESS OF MACHINARY SUPPLIERS<br />1.M/s Pelicon Metal works,<br />121, Ballasis Road,<br />Mumbai 400 008<br />M/s  Jyoti Machinery Corporation Ltd.<br />Boiler factory,<br />R&D exchange palace,<br />Calcutta<br />M/s UNIVERSAL Metal Works,<br />J.B. Nagar post office,<br />Andheri,<br />Mumbai<br />M/s Sangsung corporation,<br />6, Dr. lane,<br />Gole Market<br />New Delhi.<br />India Techno Ltd.<br />5-35/44, plot No. 145<br />Prashanthi Nagar <br />I.E. Kukatpally<br />Hyderabad<br />NAME & ADDRESS OF RAW MATERIAL SUPPLERS<br />The raw material required for product of wafer biscuit is maida & sugar and the other salt, chemicals, vegetable flat….<br />The raw material is easily available from local market. <br />M/s. Dry & Dry Food Ltd.  (MUMBAI)<br />M/s. Popcorn India Pvt. Ltd. (AHMEDABAD)<br />M/s. Matry Foods Co.(BANGLORE)<br />RISK FACTORS<br />The risk factors for the unit of wafer biscuits are as follows:<br />The product being of daily use, directly affected by the changes in taste & preference of customers.<br />The firm has to introduce day by day new quality; flavor and shape of the product for attract the consumer.<br />The unit face competition from existing new unit as it is common and prevalent for any unit.<br />Change of government policy may affect the profitability of the unit.<br />Change in environment may also affect the materials.<br />CONCLUSION<br />Preparation of PPR provides should platform from which to start the actual production by small entrepreneurs. In short, the efficiency and effectiveness have its own role to play in the success of small –scale unit.<br />  I have found that market for the bakery items is very much wide and it is also need for all types of people and profit is also good in this industry.  <br />BIBLIOGRAPHY<br />,[object Object]
  RESEARCH  AND  METHODOLOGY                N.D.VOHRA
  MARKETING MANAGEMENT                          PHILIP  KOTLER
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