` A PRODUCT PROJECT REPOT

ONTILL OIL

AT

KRISHNA OIL INDUSTRIES

PREPARED BY GONDALIYA SANJAY .J.

T.Y.B.B.A ROLL NO:12

EXAM.SEAT NO:

K.K.PAREKH COMMERCE COLLEGE AMRELI

ACEDEMIC YEAR:2008-2009

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PREFECE Under the entrepreneurship development proram,our university has made

the provision for preparing project production report with a view to educate the student of management, a manager that they can khow the information needed to etablish a business unit this program, tne stundent of T.Y.B.B.A.has to prepare areport comparing information of unit with its land,building, plantandmachinery to start theunit.

Production project repot is one of the important document for promotion which helps them for getting loan from financial institutions. This helps in informing the officers thatproposed project will be fuinished and also is efficient andeconomically viable so there is no chance of insolvency and the finance provided will nit be wasted.

With a view to fulfill the objective of university as mentioned above, I have to make this product project report onKRIHANA OLI INDFUSTRIES.

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ACKHNOWLEDGEMENT

As a part of our T.Y.B.B.A program, We have to deal with pratical aspect of preparation of product project report.

I feel very happy to present this report. This was really a challenge for to prepare the product project report. I expressed my gratitude to all proffessors and Mr.M.M.Patel/ the incharge of B.B.A. department who have guided the for the preparing this report.

Place:- Yours faithfully,

Date:- (GONDALIYA SANJAY .J.)

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INDEXSir.No Particular Page No1 Introduction 52 Project at Glace 63 Bio data of partners 74 Project location 95 Product introduction 116 Manufacturing process 127 Market potential 138 Supplier of machineries 159 Supplier of raw materials 1610 Fixed Capital 1711 Working capital 1912 Total working capital 2013 Meas of finance 2114 Financial aaspects 2415 Total cost of production 2516 Sales profibility 2617 Break even analysis 2718 Ratio analysis 3019 Future prospects 31

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1. INTRODUCTION Today’s competitive world of entrepreneur before entering in the

industrial field and launching any new product.We should collect necessary information about the product befpre estalishing an enterprise. The entrepreneur has to consider the following basic piont:-

1. Location of the unit,2. Avaibility of infrastructure facilities,3. Financial facilities,4. Infation

An entrepreneur before starting up entreprise should under take these pints and should be sure that it is a profitable proposal.

Till Oil is one of the edible oil which used in daily cooking .Other use of till oil is in to preparing hair oil. The till oil is also demanded by the other countries and there are many exporters in Bombay who purchase till oil from such samll unit. So there wide scope for the product.

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2.PROJECT AT GLANCE

(1) Name of Unit :-Krishna Industries

(2)Address :-GIDC Plot No.116 Damnagar-365250

(3)Firm of Organazation :-Parnership Firm

(4)Product :-Krishna Till Oil

(5)Size of the Unit :-1,35,92,800.

(6)Rw Material :-Till

(7)Bankers :-S.B.S. Damnagar, Bank of Baroda Union Bank Rajkot

(9)No. of Partners :-2(Two)

(10)Sources of Finance :-Owned capital and loa n from Financial institutions.

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3.BIO DATA OF PARTNERS

Partner-1

Name :-Gondaliya Sanjay j.

Father’s Naame :-Gondaliya Jivanbhai D.

Age :-22Years old

Address :-Gondaliya Sanjay j. “Shree Ram Krupa” Opp. Akshar Temple Damnagar-365520

Qualification :-B.B.A. with Adv. Marketing

Nature of Responsibility :-Marketing & Financing

Share of Profit :-50%

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PARTNER-2

Name :-Mr.Dodiya Dharmesh B.

Father’s Name :-Mr. Dodiya Bhikhabhai M. Age :-31 Year

Address :-Dodiya Dharmesh B. Baha para

Damnagar-365520

Qualification :-M.E(Mechanical Engineering)

Nature of responsibility :-Production

Share of Profit :-50%

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5. PROJECT LOCATION

The Location is very much suitable for the till oil beacause the agricultural area around. So the raw material can easily available and unskilled workers are also available easily. Following are the some sound argument for the suitability of location.

(1)Availability of Raw Material:-

Raw meterail is adaily food of industry and it should be easily available at reasonable price and time because raw is firt step of production process for any industry.The main raw material of the KRISHNA OIL INDUSTRIES is comes from the nearest area in the district.

(2)LABOUR RESOURCES:-

Lobour resources is the important for any industries fir any industries for effectively running and to achieve maximum production at cost labour should be available at last cost. KRISHNA OIL INDUSTRIES can get labour from the near by viillages.

(3)LAND:-

Land is the most impornat of the any unit,Without land not start any unit .KRISHNA OIL INDUSTRIES is the available at the GIDC area at reasonable price.

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(4)ELECTRICITY SUPPLY:- The continuos electricity supply is very important for the manufacturing process of this unit to run the machines and due to GIDC area the electricity company provides electricity continuous and at a cuurent rate.

(5)TRANSPORTATION:-

Transport the raw materials and finished products from the one place to another each industry should required of good transport facility,There are many transport companies are situated in nearby area.

(6)MARET FACILITY:-

The demand of oil is increasing at a very high rate because it is provides very much healthy for human binges and also because it is being used for making midicines and hair oil. So there is a wide scope for the product.

(7)FINANCE FACILITY:-

Finance in business is like blood of any company,KRISHNA OIL INDUSTRIES has strong finace basis.

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5.PRODUCT INTRODUCTION

It will be a great pleasure to introduce till oil mill in Damnagar. As we all know that the demand of till iol is vry well for all the year.

USE OF PRODUT

Till oil is very much useful in cooking as well as in preparing hair oil every company uses the till oil. It is also useful in preparing of pickle.So there are many uses of till oil and the demand is also very good.

COMPETITION TO BE FACED

There are many oil mills in amreli district ,so there are a good competition but if you produce a good qualty till oil then there is a wide marketing covered by us.

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6.MANUFACTURING PROCESS

Production process of till oil is a complex one. The following things are to be required for the middlemen of till oil. Till electricity power, labour sopply and tin boxes.The machineries are also required. Normally cleaning machine, Expeller machine, Boiler, Crushing machine, filter etc are required.

FOLLIWING STEPS PROCESS

1.First of all till store room(tanks)

2.All till is send to cleaning machine

3.Crushing machines

4.Heated by bioler all till oil

5.All hot tiil send to the pipe of the in filter machine

6.Filter machine after the till oil is ready

7.Ready till oil is store for the tanks and 15kgs tin

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7.MARKETING POTENTIAL

The population is increasing day by day and ith increasing population,there are also increasing in the use of till oil. It is a non durable goods and also it is non stick goods,but our product is selling is some days only. This product is very much usesful in preparing pickle hair oil and in some machine also.So it there is a wide scope for the product we can sell the product totally in the village near by and we can also send it to the exporters though tankers so it has a very wide scope for the product.

As per the population of the research the till oil is the best and healthy oil for human beings and ,so now a days it’s drmand is increasing and it is also useful in avoiding daises.

Even though,there is good demand for product as more industrialization of state, it’s required huge quantity for cooking.Though I found so many competitions in this field in the nearby area but due to good quqntity and good efforts for the selling I have full confidence that I find the specified place to earning profit.

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8.SUPPLIER OF MACHINARIES & EQUIPMENTS

(1) M/s Ramkrishna Engineering Co.B.R.Chowdhani Cowk,Cudhiana,Punjab(India)

(2) M/s Gopal Engineering Co.44/B,Raj Building,M.G.Road.Shivpuri.

(3) Prath machine ToolsM.G.Road,New Delhi (India)

(4) Heena machine ToolsS.G.Road,Rajsthan.

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9. SUPPLIERS OF RAW MATERIALS

1. M/sK. Vitthalbhai And Co.11,Market Yard,Amreli-365601

2. M/s Dhanji Parmanand & SonsMarket Yard.Amreli-365601

3. S.L. Prading Co.Market Yard,Amreli-365601

4. Rajesree Traders,Danapith,Bhavnagar.

5. Hariom Traders,Behind Railway Station,Savar Kundala.

And we rae also ges raw materials from the near by area.

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10. FIXED CAPITAL

Land and Building

No. Size Total Size Use

1.30m x 40mshed 1200sq.mt. Factory

2.10m x20m 200sq.mt. Godown

3.5m x 5m 25sq.mt. Office

The above land and building are required for production process. Rhe above premises obtain at rental based at a rent of Rs. 2000 P.M. So the yearly needs for rent is Rs.240000/-.

SrNo. Machinery Cost per Machine No.toatl cost

1. Oil Expeller No.4Crushing capacity of Rs.90000each 4 Rs360000

2. 50Hpmotor Rs.65000 1 Rs.65000

3. 20Hp motor Rs.35000 1 Rs.35000

4. A Big Boiler Rs.70000 1 Rs.70000

5. Filter Rs.30000 2 Rs.60000

6. Oil Storage Tank5000Kgs Rs.12000 5 Rs.60000

7.weighing Scale Rs.5000 3 Rs.15000

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8.Tanker Filling Pump Rs.5000 1 Rs.5000

9.Cost of Tools fixture - - Rs.800010. Furniture - -Rs.15000

11. Electric - - Rs.40000

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11. WORKING CAPITAL

(A) WAGES AND SALARY

Sr.no Prticular No 1 month 6 month 1 year

1 Filer 1 4500 2700 540002 Office boy 1 2400 14400 288003 Labour 10 21000 126000 2520004 Store keeper 1 2500 15000 30000

TOTAL 13 30400 158100 364800

(B) RAW MATERIALS (Monthly)

1. TILL15Ton daily450Ton x 27500Rs.p.m.t. Rs.1,23,75,000/-

2. Gunny Bags3600 bags monthly3600 x 8 Rs.per bag Rs.28,800/-

2. Tin Containers18000 pieces monthly18000 x 12Rs.pre piece Rs.2,16,000/-

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(c) UTILITY (MONTHLY) Rs.

1. Power 1,50,000/-

2. Fuel for boiler 15,000/-

3. Light bill & water supply 2000/----------------------- 1,67,000/-

(D) OTHER EXPENCES (MONTHLY) Rs

1. Postage & Stationary 5000/-

2.Repairs & Maintenance 1000/-

3.Telephone charges 3000/-

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12. TOTAL WORKING CAPITAL

6 MONTHS Rs.

1. Raw Material 7,57,18,800/-

2. Wages & Salary 2,00,400/-

3. Utilities 10,02,000/-

4. Other Expenses 1,08, 000 /-

TOTAL 6 MONTH W.C.

YEAR(2007) Rs.

1. Raw Material 15,14,37,600/-

2. Wages & Salary 4,00,800/-

3. Utilities 2,00,400/-

4. Other Expenses 2,16,000/-

TOTAL YEARLY W.C.

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13. BANKERS

1. S.B.I BankDamnagar.

2. S.B.S BankDamnagar

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14. MEANS OF FINANCE

Rs.(1) Dodiya Nitin B. 47,86,400/-

(2) Dodiya Dharmesh B. 47,86,400/-

(3) Loans from Bank & Finance Co. 40,20,000/-

TOTAL CAPITAL INVESTMENT 1,35,92,800/-

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15. FINANCIAL ASPECTS

TOTAL CAPITAL INVESTMENT

Particular Rs.

1. Machinery 7,33,000/-

2. Working Capital 1,26,19,800/-

3. Other Expenses (Rent etc) 2,40,000/-

TOTAL 1,35,92,800/-

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16. TOTAL PRODUCTION (6 MONTHS)

Particulars Amt. Rs.

Rent 2,40,000/-

Utility 20,04,000/-

Raw Materials 15,14,37,600/-

Depreciation on Machinery(25%) 1,79,500/-

Wages & Salary 4,00,800/-

Interest on Loan (18%p.a) 7,23,600/-

Interest on capital investment(25%) 33,38,200/-

TOTAL 15,83,23,700/-

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17. SALES PROFITABILITY

TOTAL SALES Rs.

Till oil tin 16200 tin x Rs895 14,49,90,000/-

Oil cake(cattle breed)2889tons x Rs.8000p.m.t. 2,31,12,000/-

TOTAL 16,81,02,000/-

PROFITABILITY Rs.

Total sales 16,81,02,000/-

Less: Annual Cost of Production 15,83,23,700/-

Profit 9,77,8,300/-

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18. BREAK EVEN ANALYSIS

FIXED COST Rs.

Rent 2,40,000/-Deprecition 1,81,000/-Interest 40,05,600/-Wages & Salaries 4,00,800/-

Total 48,27,400/-

VARIABLE COST Rs.

Raw material 15,14,37,600/-

Utility 2,00,400/-Others 2,16,000/-

Total 15,36,57,600/-

CONTRIBUTION Rs.

Sales 16,81,02,000/-

Less: Variable Cost 15,36,57,600/-

Total 14,44,4,400/-

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BEP Fixed Cost= --------------------------------x 100

Contribution

= 4,82,700---------------------------------x 100

14,44,4,400

= 33.42%

P.V. RATIO Contribution= -------------------------x 100

Sales

= 14,44,4,400--------------------------x 10016,81,02,000

= 8.59%

BEP (IN Rs)= Fixed cost

---------------------P.V.Ratio

= 4,82,700-------------------x 1008.5

= 5,65,4,249

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MARGIN OF SAFITY

= Actual sales – BEP Sales

= Rs.16,81,02,000-Rs56,19,7,904

= Rs.11,19,04,906

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19. RATIO ANALYSIS

GROSS PROFIT RATIO (In Rs)

=N.P. + DEP. + INTEREST= Rs.9,83,3,000+Rs 1,81,000+

Rs4,00,5,600.

=14,01,9,600/-

GROSS PROFIT RATIO(IN %)

=G.P./ Sales x 100

=Rs.14091600/Rs.168102000 x 100

=8.34%

NET PROFIT RATIO(IN%)

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=N.P/ Sales x 100

=Rs.9833000/Rs.168102000 x1=5.84%

RATE OF RETURN RATIO

Net Profit= -------------------- x100

Total Investment

= 9833000------------------ x10013592800

= 72.34%

WORKING CAPITAL TURN OVER RATIO

Sales= --------------

working Capital

= 168102000---------------154058400

= 1.09

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20. FUTURE PLANING

Now, a days till oil is very much usesful oil in cooking and in preparing hair oil, So the unit has good market. Even though this unit has to face some competition with other oil mills but the Krishna Industies gives a qualified goods and providing a good service to its customers end by it can get a good market share.

Future plan of this unit is increase the market when and provide good service to their customer so future of this product is very bright and good in market.

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AMRELI [Department of B.B.A]

DATE:

This is to certify that Mr.Gondaliya Sanjay J. is a student of T.Y.B.B.A. has carried out the product project report as per the syllabus of Saurashtra University, Rajkot . He has prepared product project report under our supervision and his own contribution for making thos report the academic year 2008-2009 is appreciated .

Prof. M . M. Patel Dr. H .M. Shah

(B.B.A. Incharge) (Principal)

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