Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

PRODUCT PROJECT REPORT

For BBA SEM-5 Product project report on paper napkin

  • Login to see the comments

PRODUCT PROJECT REPORT

  1. 1. Page 1 A PRODUCT PROJECT REPORT On PAPER NAPKIN Submitted By Meghna V. Vadariya T.Y.B.B.A. (A) Roll No. 56 Guided By Prof. Ajay Jayswal Submitted To Saurashtra University Rajkot Shri Patel Kelvani Mandal College of Technology College Road, Junagadh. Academic year 2016-2017
  2. 2. Page 2 DECLARATION I, undersigned, Meghna V. Vadariya the student of T.Y.B.B.A., Here by declared that this Project work is my own work and it has been carried out under the guidance of Prof. Ajay jayswal of Shri P.K.M. College of Technology & B.Ed. This work has not been previously submitted to any other University or institution for any examination. Place: Junagadh Date: 26th Sept, 2016 (Signature) (Meghna V. Vadariya)
  3. 3. Page 3 PREFACE Being a student of TYBBA I am extremely happy to submit this project report on small scale industry under the prescribed syllabus of Saurashtra University for particularly introducing a subject “Entrepreneurship”. Entrepreneurship is management of SSI with a view to create and develop such skill and attitude among the student in practical and professional education faculty. The goal or object of this report is to make student learn about various factors that should be a kept in mind before starting up and industry in other words, it is purely entrepreneurship development and training for establishment of SSI. The contribution of SSI is 45% in the economic growth of the country. So it becomes essential to study the management and working of SSIs as a student of management.
  4. 4. Page 4 ACKNOWLEDGEMENT It is really the matter of a great pleasure for me to undertake and presents this creative and practical work, a product project report of TYBBA on Paper cup. This report has been prepared by keep in mind various aspects relating to financial capacity of the plant which is to be an established, the fast growth and development in the field of paper cup industry. I sincerely thank Prof. Ajay jayswal for their guidance and encouragement in carrying out this project work. I would also like to express my gratitude to SSIs and all those who have assisted me during the period of my project work. Finally yet importantly, the help & support of my friends and professors have made this venture successful. Therefore, I would like to thank them all from care of my heart. - Meghna V. Vadariya
  5. 5. Page 5 INDEX Sr. No Particulars Pg. No. 1 Project At Glance 1 2 Owners & Promoters Bio-Data 2 3 Paper Napkin Varieties 4 4 Project Location’s Justification 5 5 Introduction of Product 9 6 History of Product 10 7 Market Potential 11 8 Production Schedule 12 9 Financial Aspects 14 10 Means of Finance 17 11 Financial Analysis 18 12 Profitability of project 19 13 Project summary 20 14 Balance sheet for 5 years 21 15 B.E.P. statement for 5 years 26 16 Project Advancement and Future Planning 29 17 Bibliography 30
  6. 6. Page 6 PROJECT AT GLANCE Name of the Unit: Rima paper napkins Address for communication: 366, GIDC-1, Dolatpara, Junagadh - 362001 Type of Unit: Small Scale Industry Name of product: Paper napkin SSI Registration No.: Apply for registration Subsidy Registration No.: Apply for registration Details of the Location & Unit: 365, GIDC-1, Dolatpara, Junagadh - 362001 Partner’s Name & Address: Megha V. Vadariya Ta.- Junagadh Dis.- Junagadh Mo.- Denisha A. Ladani Ta.- Keshod Dis.- Junagadh Mo.-
  7. 7. Page 7 OWNERS & PROMOTERS BIO-DATA (PARTNER’S DETAILS) There are mainly two partners: A. Meghna V. Vadariya B. Denisha A. Ladani (A) Megha V. Vadariya Name : Megha V. Vadariya Age : 20 years Religion : Hindu Address for Communication : Financial Contribution : 50% Responsibility : finance manager Education : undergoing BBA from Saurashtra University Share in profit : 50%
  8. 8. Page 8 (B) Denisha A. Ladani Name : Denisha A. Ladani Age : 23 years Address for communication : Financial Contribution : 50% Responsibility : Marketing manager Education : MBA from Gujarat University Share in profit : 50%
  9. 9. Page 9 PAPER NAPKINS VARITY
  10. 10. Page 10 PROJECT LOCATION’S JUSTIFICATION Location is the prime factor which has 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 benefit analysis and the location should either be near to the market (i.e. customers) or where the raw material is easily available in adequate quantity.  Availability of raw material : The raw material is an important and initial part of Production process. It should be easily available at reasonable price and time because it is first step of production process for any industry. In case of this industry the basic raw material is paper which are available from nearby districts. Our Raw material supplier is Luxurious Paper Products, Metoda GIDC, Rajkot.  Labour resources: Labour resources are the second important thing for any industry for effectively running and achieve maximum production. Labour should be available at least cost. In this case skilled and unskilled labour required which is available from nearby villages.
  11. 11. Page 11  Electricity supply: The continuous electricity supply is very important for manufacturing process of this unit to run the machines. And due to residential area the electricity company provides electricity continuous and at a current rate.  Transportation facilities: Transport the raw material and finished products from one place to another place each industry should required of good transport facility. There are many transport companies situated in nearby area.  Market facilities: The demand of paper napkins is increasing at a very high rate because it is easy to use, hygienic and eco-friendly. As paper napkins are a product of daily consumption and necessity, their marketing will not be a problem as the consumers are aware of the advantages of using paper napkins. The raw materials are indigenously available and the manufacturing process is also simple. Paper napkins find potential market in IT companies, Educational Institutions Canteens, Industrial Canteens, Restaurants, Fast Foods, Catering People, Tea Shops, Paper Product Dealers and Super Markets.
  12. 12. Page 12  Miscellaneous Factors: We have selected our location on the basis of following factors. a) Availability of infrastructural facility. b) Availability of Banks or financial institution. c) Availability of bodies such as Hospitals, dispensaries, post office, etc… enjoyed by the communities.
  13. 13. Page 13 Location  Registered office: 366, GIDC-1, Dolatpara, Junagadh – 362001  Production Location: “RIMA PAPER NAPKINS” 365, GIDC-1, Dolatpara, Junagadh - 362001
  14. 14. Page 14 INTRODUCTION OF PRODUCT Paper napkin is a small piece of tissue paper used for hand or face cleaning. These are becoming popular with the catering more and more used in households, restaurant, institutions etc. These are absorbent, hygienic, and light can be had with attractive printing. Paper napkin also became popular with expense-conscious restaurateurs, and not simply for their lower initial cost; they were found to be more convenient and to eliminate the costs of, day in and day out, sending cloth napkins out to be laundered and receiving them back into inventory. Equally important, with paper napkins there is never the possibility of giving a guest a napkin with a residual stain on it or, sin of all restaurant sins, giving a dinner a used napkin. Paper napkins come in a broad range of sizes, patterns, and quality. There are paper napkins with every kind of holiday design printed on them, colorful napkins for colorful parties, and even paper napkins that closely resemble cloth. You may order custom-designed paper napkins with the names and dates of the commemorative occasions you specify printed on them.
  15. 15. Page 15 HISTORY OF PAPER NAPKIN Conventionally, the napkin is often folded and placed to the left of the place setting, outside the outermost fork. In a restaurant setting or a caterer’s hall, it may be folded into more elaborate shapes and displayed on the empty plate. Origami techniques can be use to create a three-dimensional design. A napkin may also be held together in a bundle with cutlery by a napkin ring. Alternatively, paper napkin may be contained with a napkin holder. Napkins were used in ancient Roman times. One of the earliest references to table napkins in English date to 1384-85. Summaries of napkin history often say that the ancient Greeks used bread to wipe their hands. This is suggested by a passage in one of Alciphron’s letters (3:44), and some remarks by the sausage seller in Aristophanes’ play, the knights. The bread in both texts is referred to as apomagdalia, which simply means bread from inside the crust known as the crumb, and not special “napkin bread”. The use of paper napkins is documented in ancient china, where paper was invented in the 2nd century BC. Paper napkins were known as chih pha, folded in squares, and used for the serving of tea. Textual evidence of paper napkins appears in a description of the possessions of the yu family, from the city of Hangzhou.
  16. 16. Page 16 MARKET POTENTIAL Tissue paper is a lightweight paper and has become one of the most essential commodities of daily life. The tissue paper come into use in 1920’s and since then the consumption of tissue paper has been consistently increasing. The continuous developments in the tissue paper industry have enabled individuals to lead a more sterile and hygienic life. The habit of having a paper napkin or a face tissue or hand tissue in a handbag or a travel kit has become a regular practice among the middle-class in the rural regions of emerging countries. Most interestingly, the middle-class-especially women believe that they are people from the elite stratum of society through these practices. Urbanization has made a profound impact on our dining habits. One of the notable changes is the increased use of paper napkins now a days, which was otherwise could be seen only in western countries. Plain paper napkins are now being widely used in restaurants, households, vehicles, industries, institutions etc. Paper napkins with colorful layout and attractive designs are having bright prospects with our restaurants focusing on tidiness and adornment.
  17. 17. Page 17 PRODUCTION SCHEDULE A. Production Process Tissue paper roll are fed to the flexographic printing machine with attachment for the manufacturing of paper napkins wherein, these are printed and cut to the size with the device already fixed with the machine. These are then packed in numbers or as desired.
  18. 18. Page 18 B. Production capacity Installed 100%: The production capacity of this established plant will be 12,000 sheets per day. Utilized 50%: The production capacity of this established plant will be 6,000 sheets per day. The schedule for production would be as follows: 9 a.m. to 1 p.m. & 3 p.m. to 7 p.m. The whole production process would be carried out simultaneously and the post production will also be speedily.
  19. 19. Page 19 FINANCIAL ASPECTS A. Fixed capital i. Land and Building: Sr. No. Particulars Sq. m. Price (Per Sq. m.) Total value (Rs.) 1 land 100 15,000 15,00,000 2 Building 80 10,000 8,00,000 Total 23,00,000 ii. Machinery and Equipments Sr. No. Description Quantity Value 1 2 color flexographic machine with attachment of paper napkin 1 4,00,000 2 Testing equipment L.S. 3 Edge sealing and cutting machine L.S. 4 Hand tools L.S. 5 Sales tax, freight & insurance Etc. 20,000 Total 4,20,000 iii. preliminary expenses 10,000 Total Fixed capital (i + ii + iii) 27,30,000
  20. 20. Page 20 B. Working capital i. Staff and Labour (Per Month): Sr. No. Description No. Salary Total 1 Sale Cum Production supervisor 1 12,000 12,000 2 Skilled Worker 1 8,000 8,000 3 Unskilled Worker 1 5,000 5,000 Total 25,000 ii. Raw Materials Requirements (Per Month): Sr. No. Description Quantity Value 1 Tissue Paper 21 GSM 6.25 Kg 1,87,500 2 Inks & other consumables L.S. 5,000 3 Packing Material L.S. 500 Total 1,93,000
  21. 21. Page 21 iii. Other Expenses (Per Month): Sr. No. Description Amount 1 Electricity Charges 1,300 2 Advertisement & travelling 1,000 3 Transport 1,500 4 Consumable and stores etc. 500 5 Postage Exp. / telephones 500 6 Stationary 500 7 Repairs and maintenances 1,000 Total 6,300 iv. Total Working Capital for 3 months: Sr. No. Description Amount (Per Month) 1 Raw material (1,93,000 x 3) 5,79,000 2 Salary (25,000 x 3) 75,000 3 Other expenses (6,300 x 3) 18,900 Total 6,72,900
  22. 22. Page 22 TOTAL CAPITAL INVESTMENT: Fixed Capital : 27,30,000 (+) Working Capital for 3 months : 6,72,900 Total : 34,02,900 MEANS OF FINANCE (1) Vadariya Megha V. 17,01,450 (2) Ladani Denisha A. 17,01,450 Total Capital Investment 34,02,900
  23. 23. Page 23 Financial Analysis A. Cost of Production (Per Year): Sr. No. Description Amount 1 Total Recurring Cost 26,91,600 2 Depreciation on Land @ 10% 1,50,000 3 Depreciation on Building @ 5% 4,000 4 Depreciation on Machine @ 10% 42,000 Total 28,87,600 B. Turnover (Per Year): Sr. No. Description Qty Rate(Rs.) Value(Rs.) 1 Paper Napkins 18,00,000 2 36,00,000 Total 36,00,000 C. Net Profit (Before Taxation)(Per Year): Turn Over : 36,00,000 (-)Cost of Production : 28,87,600 Total : 7,12,400
  24. 24. Page 24 PROFITABILITY OF PROJECT Particulars Amount Sales and production 36,00,000 Raw materials 23,16,000 Salary & wages 3,00,000 Electricity Consumed 75,600 Taxes – Insurance 2,40,000 Depreciation 1,96,000
  25. 25. Page 25 PROJECT SUMMARY Particular Amount Sales 36,00,000 (-) Variable cost 23,31,600 Contribution 12,68,400 (-) Fixed cost 3,60,000 PBIT 9,08,400 (-) Tax (33.33%) 3,02,770 PAT 6,05,630
  26. 26. Page 26 BALANCE SHEET FOR 5 YEARS For 2016-17 Liabilities Amount Assets Amount Capital (1:1) Land – 15,00,000 Meghna - 17,01,450 (-) Dep. -1,50,000 13,50,000 Denisha -17,01,450 34,02,900 Building -8,00,000 (-) Dep. -4,000 7,96,000 Net Profit (1:1) Meghna – 3,02,815 Machine -4,00,000 Denisha – 3,02,815 6,05,630 (-) Dep. -42,000 3,58,000 Cash & Bank Bal. 15,04,530 40,08,530 40,08,530
  27. 27. Page 27 For 2017-18 Liabilities Amount Assets Amount Capital (1:1) Land – 13,50,000 Meghna – 17,01,450 (-) Dep. -1,50,000 12,00,000 Denisha -17,01,450 34,02,900 Building -7,96,000 (-) Dep. -4,000 7,92,000 Net Profit (1:1) Meghna – 3,87,379 Machine -3,58,000 Denisha – 3,87,379 7,74,759 (-) Dep. -42,000 3,16,000 Cash & Bank Bal. 18,69,659 41,77,659 41,77,659
  28. 28. Page 28 For 2018-19 Liabilities Amount Assets Amount Capital (1:1) Land – 12,00,000 Meghna – 17,01,450 (-) Dep. -1,50,000 10,50,000 Denisha -17,01,450 34,02,900 Building -7,92,000 (-) Dep. -4,000 7,88,000 Net Profit (1:1) Meghna – 4,71,943 Machine -3,16,000 Denisha – 4,71,943 9,43,887 (-) Dep. -42,000 2,74,000 Cash & Bank Bal. 22,34,787 43,46,787 43,46,787
  29. 29. Page 29 For 2019-20 Liabilities Amount Assets Amount Capital (1:1) Land – 10,50,000 Meghna – 17,01,450 (-) Dep. -1,50,000 9,00,000 Denisha -17,01,450 34,02,900 Building -7,88,000 (-) Dep. -4,000 7,84,000 Net Profit (1:1) Meghna – 5,56,508 Machine -2,74,000 Denisha – 5,56,508 11,13,016 (-) Dep. -42,000 2,32,000 Cash & Bank Bal. 25,99,916 45,15,916 45,15,916
  30. 30. Page 30 For 2020-21 Liabilities Amount Assets Amount Capital (1:1) Land – 9,00,000 Meghna – 17,01,450 (-) Dep. -1,50,000 7,50,000 Denisha -17,01,450 34,02,900 Building -7,84,000 (-) Dep. -4,000 7,80,000 Net Profit (1:1) Meghna – 6,41,072 Machine -2,32,000 Denisha – 6,41,072 12,82,144 (-) Dep. -42,000 1,90,000 Cash & Bank Bal. 29,65,044 46,85,044 46,85,044
  31. 31. Page 31 B.E.P. Statement for 5 years Particulars 1st year 2nd year 3rd year 4th year 5th year 50% 60% 70% 80% 90% Sales 36,00,000 43,20,000 50,40,000 57,60,000 64,80,000 Less Variable Exps. Raw materials 23,16,000 27,79,200 32,42,400 37,05,600 41,68,800 Electricity charges 15,600 18,720 21,840 24,960 28080 Total Variable Exps. 23,31,600 27,97,920 32,64,240 37,30,560 41,96,880 = Contribution 12,68,400 15,22,080 17,75,760 20,29,440 22,83,120 Less Fixed Cost Salary & 3,00,000 3,00,000 3,00,000 3,00,000 3,00,000
  32. 32. Page 32 wages Advertisem ent & travelling 12,000 12,000 12,000 12,000 12,000 Transport 18,000 18,000 18,000 18,000 18,000 Consumable and stores etc. 6,000 6,000 6,000 6,000 6,000 Postage Exp. / telephones 6,000 6,000 6,000 6,000 6,000 Stationary 6,000 6,000 6,000 6,000 6,000 Repairs and maintenance 12,000 12,000 12,000 12,000 12,000 Total fixed cost 3,60,000 3,60,000 3,60,000 3,60,000 3,60,000 Net Profit 9,08,400 11,62,080 14,15,760 16,69,440 19,23,120 B.E.P. 28.38% 23.65% 20.27% 17.74% 15.77%
  33. 33. Page 33 P.V. Ratio: Contribution = x 100 Sales 12,68,400 = x 100 36,00,000 = 35.23% Break Even Point (in Rs.): Fixed Cost = x 100 P.V. Ratio 3,60,000 = x 100 35.23 = 10,21,856.37
  34. 34. Page 34 PROJECT ADVANCEMENT AND FUTURE PROSPECTS Paper napkin is used in all hotels and restaurants, it is used by human being as a substitute if handkerchief. In homes at the time of dinner, lunch or breakfast it is extensively used. Paper napkin is a costlier affair and cannot be afforded by all categories of persons. Therefore, high or medium class family uses it. Paper napkin age becoming popular with catering industry due to its manifold uses. These are absorbent, hygienic light and can be had with attractive printing. From a market survey Indian paper industry has a huge potentials and prospects in coming future. In our country, demand for paper is rapidly increasing.
  35. 35. Page 35 BIBLIOGRAPHY Books:  Production Management - By: Himalaya Publishing House  Marketing Management - By: Tapan K. Panda  Financial Management - By: B.S. Shah  Human Resource Management - By: K. Aswathappa Websites:  www.google.com  Wikipedia

×