cricket balls ppr
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A
PRODUCT PROJECT REPORT
ON
-: PERPARED BY: -
PATEL SAPAN B.
COLLEGE
H.N. SUKLA
ACADEMIC YEAR
2006 07
CLASS
T.Y.B.B.A.
ROLL NO.
SEAT NO.
- : SUBMITTED TO: -
Saurashtra University
-: GUIDED BY:-
Prof. Dr. M.M.Thaker
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I have undersigned Mr. Praful A. Chauhan a student of
T.Y.B.B.A. hereby declare that the project report is my own work and
has been carried out under the supervision on guidance of Prof. Dr.
M.M.Thaker , M.T.D.C.C. Rajkot.
This work has not been previously submitted to any other
university for any other examination.
Date :
Place : Rajkot
Signature
[Praful A. Chauhan]
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Small Scale Industry is the pillar of industrialised Indian
economy. In India, the S.S.I. provides more than five times
employement than the Large Scale Industry. More over, in a short time
preiod, S.S.I. I have made a notable contribution in the adoption of
modern techniques.
It is very good opportunity for me to submit this report for S.S.I.
under the prescribed syllabus of Saurashtra University, Rajkot. The
object of this report is to develop enterpreneur skills and awareness. For
this purpose the product of leather balls for cricket and hockey. This
project provided me with the knowledge of various aspects of launching
a new product in this era. I have tried my level best to make this report
most precise, relavant and in systematic manner.
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Time has no passage to mark its existance but we have language
to express. No doubt that the word Thanks is very small to express my
hearly feelings.
I sincerely express my gratitude and warm regards to our Prof.
Dr. M.M.Thaker for her valuable suggestion and guidance during my
work. I am also thankful to our Principal Mr. B.S.Dalsania of
M.T.D.C.C.
Last but not least, I am indeed thankful to my parents for their
moral support, encouragement and involvement in my mission and
other friends for their help and co-operation.
Praful A. Chauhan
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SR. NO. NAME OF THE TOPIC PAGE NO.
1 Introduction.........................................................................01
2 Project at a glance...............................................................02
3 Implimentation schedule....................................................03
4 Partners background..........................................................04
5 Justification of location.......................................................06
6 Basis and presumption.......................................................09
7 Pro. details...........................................................................10
8 Details of Raw material........................................................11
9 Use of application of product..............................................12
10 Market Potential..................................................................13
11 Process outline.....................................................................14
12 Capacity utilization..............................................................16
13 Financial aspects..................................................................1714 Fixed capital details.............................................................18
15 Working capital details.......................................................20
16 Total capital investment......................................................21
17 Sources of finance................................................................22
18 Interest on investment or capital........................................22
19 Depreciation schedule.........................................................23
20 Cost of production...............................................................23
21 Sales turnover......................................................................24
22 Annual fixed cost.................................................................24
23 Profitability analysis............................................................25
24 BEP Analysis........................................................................26
25 Ratio analysis.......................................................................27
26 Projection.............................................................................28
27 Future plan..........................................................................29
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S.S.I. is economic strength of country. This fact is realised by India
after independence. But in recent years, the S.S.I. of India has
undergone rapid changes and had flourished in India in earlytimes.
S.S.I. provides Raw Material to large scale units and to be partner of
success. The most important role of S.S.I. in Indian economy is as
greater of employment and equal distribution of income.
ROYAL Balls Ltd. is one of the unit of S.S.I. The purpose of this uit
is to create cricket and hockey balls from leather. Cricket and
Hockey are the two games which are very popular and played not
onlyin our country but all over the world. After partition of the
country in 1947, a large number of workers migrated to India. Theysubsequently settled down in Meerut and Jalandhar, where they
started manufacturing cricket and hockey balls.
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Name of the unit - Royal Balls Ltd.
Products Name - Cricket & Hockey balls
Address of the office - G.I.D.C. Metoda,
Plot No. 6
Form of the unit - Partnership
S.S.I. registration no. - Applied for
Location of the unit - ROYAL Entertainment Balls Ltd.
G.I.D.C. Metoda, Plot No. 6,
Rajkot.
Cost of production - 1, 12, 22, 307
Partners name - Vishal Maheta
Hiren Ghediya
Devang Kamdar
Subsidy registration no. - Applied for
BEP - 53.068 %
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Sr. No. Particular Period1 Collection of data 2 months2 Preparation of project report 1 month3 Locan formalities 1.5 month4 Selection of site 1 month5 Construction of building 3 month6 Machinery installation 1 month7 Recruiting personnel 1 month8 Selection of procurement 1 month9 Receipt of Raw material 15 days10 Obtaining power and water connection
and installation of power facilities
1.5 months
11 Registration of S.S.I. 1 monthTotal 24.5 months
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PARTNER 1
Name - Praful A. Chauhan
Age - 20
Address - Jay Bhim Nagar,
Kalawad Road
Rajkot .
Specialized subject- Research
Present activity - Promoter of the Star Engineers
Income - 1,00,000
Financial contribution 40%
Responsibility - Research and Development
Experience - Fresh
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PARTNER 2
Name - Makwana Nilesh
Age - 25
Address - Ambedkar Nagar,
Kalawad Road,
Rajkot.
Qualification - M.B.A.
Specialized subject- Financial management
Present activity - The M.D. of Star Engineers
Income - 50,000
Financial contribution 30%
Responsibility - Production Engineer,
Finance Deptt. & HRM
Experience - 3 years
PARTNER 3
Name - Devang Pandya
Age - 22
Address - Nirmal-Shanti, 7-Chhotunagar,
Raiya Road, Rajkot.
Qualification - M.B.A.Specialized subject- Marketing
Present activity - -
Income - -
Financial contribution 30%
Responsibility - Marketing Head, Chairman
Experience - -
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Site of selection is an important activity. Because a good location
may reduce the cost of production. Locating a business involves a
large relatively permanent investment. If the site selection is not
proper, all the money spent on factory building machinery and their
installation will go in waste and the owner has to suffer a great loss.
Therefore, the site for the factory should be selected very carefully.
According for our purpose industrial proposition at Metoda, GIDC,
Taluka Rajkot, District Rajkot, Gujarat state is selected by us.
All infrastructure facilities available the same place are as follows.
A TRANSPORTATION
The purposed factory will be at Metoda, Rajkot well
connected by three modes of transportation, Railway,
Roadway & Airway. The factory site is in proximity with the
Rajkot Railway Junction and Domestic Airport, the national
highway 8B and the state highway Ahmedabad-Rajkot-
Kandla.
The nearest international city is Mumbai 45 minutes
flying time and the nearest major port is Kandala 200 km. by
road. So all kind of transporting vehicle, truck, train, ship,
plane etc are available not to far from the site and hence our
location in respect of to transport availability for the product
concerned is the most suitable one.
B AVAILABILITY OF RAW MATERIAL
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Mainly for our product leather is needed and other raw
materials which are in detail given later in this report. All
those raw materials are available at Ahmedabad, Bombay,
Delhi & Chennai. Most of the raw materials are available at
Ahmedabad, which is hardly 235 kms away from our site. As
stated earlier, the transportation agencies services are easily
available at competitive price from Rajkot which minimizes
the cost. So, procurement and transportation of raw materials
is not a problem.
C MAN POWER
All manufacturing concern small or big always depends on
available man power skilled, unskilled, semiskilled. We have
also given a thought to this matter and found that ours is an
area cheep labour is easily available in our project. We had
60% workers labourers type and 40% skilled type. Twooptions are available with as for recruiting the skill
employees, first the Saurashtra University, IIT near Aji Dam
and B.K. Modi near Aji Dam in Rajkot and the Ahmedabad
city which is hardly 235 kms away from out site.
D MARKET
All products manufacturers always think about market of
these product. Our nearest and main markets are Bombay,
Delhi, Ahmedabad, Rajkot, Baroda, Jamnagar, Mahesana etc.
To our pleasure, some big parties have afford us to purchase
whole of our manufacture lost in full quality and also cricket
and hockey balls are needed by them. So, there is no problem
in marketing.
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E WATER FACILITIES
Water is not required for product purpose. It is required only
for domestic purpose. Arrangement will be made at the site
by installing tubewell.
F SOURCES OF FINANCE
Finance is oxygen or blood for the industry and thus the
procurement of finance is very vital. Proximity of the site, to
the Rajkot city makes the source of finance closes to the
concern. The various financial industries like the nationalized
banks, commercial banks, GSFC branch are located in Rajkot
city near to the site of the factory.
G OTHER FACILITIES
Along with all the above mentioned facilities, other facilitieslike, the insurance cos, tele-communication, medical
services, post-office services etc. are also available in the near
by area.
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The profit is drawn on the basis of following presumption.
1 No. of shifts - 2 shifts
Working days - 300 days
Working hours - 16 hours
2 The cost of land is based on the prevailing rates at
Metoda GIDC, Rajkot.
3 The interest rate and depreciation rate are fixed as
per the government specification.
4 The salary and wages have been decided on the basis
of local markets.
5 Break Even Point has been calculated on the full
capacity utilisation basis.
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Generally, these products are based on the leather, thread, cork,
polishes and wool are also used with leather in production on
cricket and hockey balls. The purpose of unit is to produce
qualitative product in the less cost.
To make proper and qualitative ball, proper shape, proper weight,qualitative leather, initial stitching etc. are needed. Because these
things are help the bowler in delivery and spinning the ball. In this
unit, four types of cricket balls are produced according to quality.
The hockey and cricket balls are duco finished. There is also the
demand for unglazed balls. So, unglazed balls are also produced in
this unit.
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Raw materials is one of the important things for production. If there
is no raw material then there would be no product of this unit.
Obtain most of its raw material from the local market.
The important raw materials required for the manufacture of cricket
and hockey balls are leather, thread, cork, polishes and wool.Fortunately all the items mentioned above except cork are
indigenously available. Cork will have to be imported. Thus, the raw
materials are available in open market in Gujarat. So, unit does not
find any difficulty in collecting raw materials.
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Cricket Ball (EXS1275) Description:Squeezable cricket ball. Minimum quantity
- 500. Please check current stockavailability.
Product Size: 70 x 70 x 70mmPrint Area: 40 x 40mm
Prices inclusive of print in one position. Screens are charged extra at 50 Rs per colour, perposition.over 500 over 1000 over 2500
1 Colour Logo Rs.300 Rs.400 Rs.5002 Colour Logo Rs.300 Rs.400 Rs.5003 Colour Logo Rs.300 Rs.400 Rs.5004 Colour Logo Rs.300 Rs.400 Rs.500
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Cricket is the most popular game in our country. While Hockey is
our national game and it is also popular. But compare with the
cricket, popularity of the hockey is less.
A ball is an important thing for these two games. We can say that
ball is blood for cricket and hockey. this unit produce qualitativeballs.
Care is to be taken to see that properly tanned leather is selected
and correct pattern cutting delivery and spinning Stitching also
provides the main strength to the balls. So, the balls are stictched
clamped in a special mould holding clamps to give the desired shape
of the balls. An attractive polish is needed. Hockey and cricket balls
are duco finished. Unglazed balls are also produced. These balls re
qualitative, strong, attractive and cheap.
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Hockey and cricket, these two games are very popular. These games
are played in all over the world. So, cricket and hockey balls are
demanded product.
Looking to the internal and increase in export demand, there is a
good scope for starting new manufacturing units in different partsof the country. Meerut, Jalandhar are the starting place or city,
where a large number of workers started manufacturing cricket and
hockey balls.
The demand for quality goods is increasing hence there is a scope
for another 10 to 15 new units every year. The raw materials
required for the manufacture of cricket and hockey balls are
indigenosly available. Even in rural areas, these games are very
famous.
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The heart of any unit is manufacturing department. This
department is also called lubricant oil of any unit. The main aim of
any industry is to manufacture something extra-ordinary which
attracts the customers. Let us see the process of manufacturing of
this unit.
Alum tanned leather is used in the manufacture of
hockey balls, while vegetable tanned leather is used in
manufacturing cricket balls. Properly tanned leather is
selected and correct pattern cuting is adopted.
Zicronium tanned leather is used for the manufacture
of first quality cricket balls. As regards other raw
materials such as thread, cork, polish and wool the
quality of material used depends upon the quality of
balls required to be supplied.
The cutting of pieces can be done manually as well as
by mechanical dicking process. Two sections are
stitched together in seamless stich which runs inside
the leather and are called cups. It should be nated that
there side not be more than 25 to 26 stitches in the
manufacture of joint otherwise the stitches might tear
the leather. Different types of raw materials are used
for different types of raw materials are used for
different quality for ex. For cheaper varieties the
mixture of rubber and cork mixtures are usd. Now dry
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the balls with the help of machines. Now press the cup
in such a way so that wrinkless do not appear in the
cup. Now dried cups are stitched by skilled workers.
The skilled workers are to be very careful when making
the final stitching in two parallel rows. Because it helps
the bowler in delivery and spinning the ball. After
stitching, electrically heated and good polish is needed.
There is also demand for unglazed balls.
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The total capacity installed is 25,000 balls per month. In the first
year, 50% of the capacity shall be utilized i.e. the month production
of balls will be 15,000. In the second and third capacity utilization
will be 60% and 70% respectively.
Actually the capacity of the unit is alwys fluctuating. At the time ofworldcup or cricket tournament, the demand of cricket balls will be
increased. So unit can produce more balls at that time.
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1 LAND, BUILDING & FURNITURE
Sr. No. Particular Cost1 500 sq.mtrs. of Land of Rs.600 per sq.mtr. 3,00,0002 4920 sq.feets of building of Rs.250 per sq.feet 12,30,0003 Furniture 1,00,000
Total 16,30,000
2 MACHINERY AND EQUIPMENTS
Sr. No. Particular Cost1 HP Motor (having capacity of 24 dozens balls) 14,00,0002 Power operated press 17,00,5003 Automtic injection moulding machine 10,00,0004 Stamping press qty. 3 9,00,0005 Automatic mixture machines with electrical (2) 8,75,000
6 Electric drying oven heated 2 7,50,0007 Electrification, installation and transportation
charges8 Other equipments 3,00,0009 Stitching frames 54,00010 Other office equipments 20,500
Total 70,00,000
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3 STATEMENT SHOWING TOTAL FIXED COST
Sr. No. Particular Cost1 Land 3,00,0002 Building 12,30,0003 Furniture 1,00,0004 Machinery & Equipments 70,00,000
Total 86,30,000
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1 RAW MATERIALS 5,50,000
2 SALARY AND WAGES OF TECHNICAL STAFF AND OFFICE
STAFF
Particular Qty. Per Person ValuePurchase sales manager 1 8000 8,000Production manager 1 8000 8,000Supervisors 2 2500 5,000Maintanance Engineers 1 4000 4,000
Accountant 1 3500 3,500Store Keeper 1 2000 2,000Computer Operator 1 2500 2,500Skilled workers 10 2400 2,4000Unskilled workers 15 1200 18,000
Total Salary 75,000+ 20% Benefits ( Labour Act ) 15,000Total 90,000
3 UTILITIES
Electricity 14,000Fuel 10,000Packing 7,000Total 31,000
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4 OTHER CONTINGENT EXPENSES
Postage & Stationary 2,000
Transportation 20,000Sales Expenses 5,000Repair and maintanance 2,000Insurance 5,000Telephone 6,000
Advertising and publicity 5,000Total 45,000
5 STATEMENT SHOWING TOTAL WORKING CAPITAL (MONTHLY)Raw material 5,50,000Salary & Wages 90,000Contingent Expenses 45,000Utilities 31,000Total 7,16,000
6 WORKING CAPITAL REQUIREMENT ( FOR 3 MONTHS )
Rs. 7,16,000 3 = 21,48,000
Fixed Capital 86,30,000Working Capital 21,48,000Total 1,07,78,000
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Particular Owned (35%) Bank (25%) IDBI (40%)Machinery 24,50,000 17,50,000 28,00,000Building 4,30,500 3,07,500 4,92,000Land 1,05,000 75,000 1,20,000Furniture 35,000 25,000 40,000
Working Capital 7,51,800 5,37,000 8,59,200Total 37,72,300 26,94,500 43,11,200
Bank Loan 13% 3,50,285
Owned Capital 10% 3,77,230IDBI 16% 6,89,792Total 14,17,307
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Machinary 15% 10,50,000Building 10% 1,23,000Land 10% 30,000Furniture 10% 10,000Total 12,13,000
Total requirement of working capital 85,92,000Department of Land 30,000Department of Building 1,23,000Department of Machinary 10,50,000Department of Furniture 10,000Interest on Bank Loan 3,50,285
Interest on Owned Capital 3,77,230Interest on GSFC Loan 6,89,792Total 1,12,22,307
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Yearly production : 15,000 12 = 1,80,000
Selling price Rs. 95 per piece
Total annual sales volume :
1,80,000 95 = 1,71,00,000
Dep. on Machinary 10,50,000
Dep. on Building 1,23,000Dep. on Land 30,000Dep. on Furniture 10,000Int. on Bank Loan 3,50,285Int. on GSFC Loan 6,89,792Int. on Owned capital 3,77,23040% on salary & wages 4,32,00040% other contingent exp. 2,16,000Total 32,78,307
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Sales Volume 1,71,00,000
- Cost of Production 1,12,22,307
----------------
Earning before interest & tax 58,77,693
- Interest on capital 14,17,307
----------------Earning before tax 44,60,386
- Income tax at 35% 15,61,135
----------------
28,99,251
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BEP = 100ProfitcostFixed
CostFixed
+
= 100251,99,28307,78,32
32,78,307
+
= 100558,77,61
32,78,307
= 0.53068 100
= 53.068
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1 ROI = 100InvestTotal
Profit
= 100000,78,07,1
28,99,251
= 26.8997 = 26.9 %
2 Net Profit = 100Sales
taxandinterestafterProfit
= 100000,00,71,1
28,99,251
= 16.95 %
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Statement showing sales for the next five year
Particular Year-1 Year-2 Year-3 Year-4 Year-5Qty. Sold
(PM)
15,000 18,000 21,000 24,000 30,000
Qty. Sold
(PA)
1,80,000 2,16,000 2,52,000 2,88,000 3,60,000
Selling Price
(PM)
95 95 95 95 95
Total sales
volume
17,100 20,520 23,940 27,360 34,200
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ROYAL Entertainment Balls Ltd. has specified future plans to
follow. It has fixed goals to be achieved in future. Certain future
plans of this unit are as under.
Company wants to increase its sales and profit and be a larbe
scale industry. Company wants to start the production of another balls, such
as footballs and volleyballs. Because after cricket, football is very
famous game.
Company wants to wider its network in whole country. For it
they are deciding to establish branches in most of the state in India.
Thus, this company has bright future vision and it wants to extend
its coverage.
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