aqua max report

AQUAMAX FLAVORED WATERS

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AQUA

MAX


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A project of

AQUA MAX

flavored water Prepared by Entrepreneours

(HITEC UNIVERSITY)

Jamil Hassan Khattak

Samar Aziz.

Abrar Hussain.

Faheem Hussain.

Dated: 2nd

Dec, 2011.


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ACKNOWLEDGEMENT

First of all we all group members would like to thank ALLAH ALMIGHTY who has helped us

at every stage in completing this project.

Secondly, we would like to thank our teacher who has helped us learn a lot about

Entrepreneurship and his teaching has had a huge impact on our way of observing things. We

had tried to put in all of our efforts and knowledge in completing this project that we had gained

during our semester and by the teaching of our instructor.


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Executive Summary

Flavored waters are produced and consumed for their refreshing character and nutritional

qualities being rich in vitamins and minerals and having regulatory functions to the body .

Moreover the global trend of preferring flavored waters also marks possibilities of growth

in this sector. Furthermore, the growing exports volume and withdrawal of CED (customs and

excise duty) on flavored waters (produced locally) could further supplement significant growth

in the flavored waters industry and purses us to start this business.

The company aims to provide a sophisticated quality to consumers that will surely attract them

and retain them by serving with the best. Our key product is the flavored waters made from the

fresh and pure water of Pakistan.

The initial investment of the project and the total cost of the project is estimated at around is

about 150 Million. The working capital requirement is around Rs. 2, 0601,176 million and

the rest will be the fixed capital that is around Rs. 112,808,000. Production facility is located at

Industrial Sector HATTAR. That is 45 km away from the Capital of Pakistan.

Flavored waters aim to cater to the needs of the customers with a sheer dedication to quality and

a mission of maintaining excellence in all our endeavors. Our mission is to provide best water

with style and quality. To achieve our long term goals we have established a strong marketing

strategy.

It is also important to tell that flavored waters product has a meaningful point of difference i.e.

sophisticated and healthy attractive packaging, less use of preservatives and clearly

mentioning of purity of the water.


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TABLE OF CONTENTS

Serial

No

Description Page No

1 The business profile: 08

2 Target market and customers: 08

3 Growth trends in the business: 09

4 THE VISION AND THE PEOPLE 11

5 Why we want to do this business? 12

6 Work Experience Related to My Intended Business 12

7 Skills and knowledge required for the business 12

8 Personal background 13

9 Education credentials 14

10 Communications 14

11 Organization 16

12 LICENSES 16

13 PREMISES 17

14 Marketing and sales 17

15 MARKETING MIX 18

16 SWOT ANALYSIS 23

17 Total investment of the project 24

18 Financial Requirement (Capital assets) 25

19 Accounting and balance Sheet 31

20 Projected income Statement 32

21 E-Commerce 33

22 Web Site 35


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1) The business profile:

In order to do something different our group has decided to introduce such a product in the

market which is not in existence at the moment in Pakistan and that is flavored water at the

present moment no organization is manufacturing it in our part of the world.

AQUA MAX is actually an English word that means “Sweet Water”. AQUA MAX will engage

in the manufacture of drink mixes and flavor systems. Its applications will be beverage

industries. Its customers will include convenience store chains. It will have a network of broad

line and dual distribution channels own stores plus specialty distributers who will sell to the

convenience stores and the departmental stores in every city of Pakistan.

2) Target market and customers:

A group of customers that the business has decided to aim its marketing efforts and ultimately

will be the people of Pakistan. The major portion of the market for which our company is

working is the children and Youth of Pakistan because the percentage of children and youth in

Pakistan is round about 70% of the total population.

Here after comes the aged people of Pakistan, the company is offering the sugar free and diet

flavored waters for this sector of the demographics.

It’s being forecasted by the team members of “AQUA MAX” that customers will want and need

for the AQUA MAX flavored water drinks because now days if u see the soft drinks have a wide

completion in Pakistan and is almost the saturated industry of Pakistan. AQUA MAX will bring

a new trend and new taste of water among the people of Pakistan. Therefore now “The AQUA

MAX” has an opportunity to launce the flavored water solutions in Pakistan. It will be the

pioneer of the flavored water in Pakistan therefore it will have the status of a monopoly in the

flavored industry. Though soft drinks are going on its peak and is the most profitable industry of

Pakistan but it also has the draw backs, that the beverages companies are using caffeine, high

sugar and other items in their products in a very high amount that are causing the health

problems in the aged sector of Pakistan.

http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Marketing


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3) Growth trends in the business:

The market of our product has the growing trend. As there is no flavored water industry in

Pakistan therefore we have the opportunity to grow rapidly in the market.

3.1) Pricing power:

The uniqueness quality or circumstances concerning our product that will enable us to maintain

the profitable pricing has the following steps.

3.11).Focus on the customer:

The most valuable component of a small business is a customer. We in our company realize

that everything in the business even the business itself depends on creating a satisfied

customer. in doing so, we tend to be connected to our customers on an emotional level and

look forward to establish deeper relationship with our customers by taking exceptional care

of our customer needs and by fulfilling their expectations in the quality of our product.

3.12). Devotion to quality:

At “AQUA MAX” we understand that in that business quality goods and services are a

prerequisite for success and even survival. We establish our company with a distinct and

extra ordinary level of quality to our customers. At AQUA MAX quality is much more than

just a slogan posted on the company bulletin boards, rather we treat quality as a strategic

objective an important part of company’s strategy and culture. We will provide quality not

just in the product or services itself but in every aspect of the business and its relationship

with the customer. After surveying we came to know that people have a strong desire of a

product that is new in nature for the regular customer. The feature of our enterprise is only

based on the high quality & new flavors.

3.13). Reliability:

We never compromise on taste, freshness and quality of flavored waters. We always

provide excellent quality which results in increasing trust of our customer on our brand.

We tend to acknowledge edge our customer that we care about their health and give extra

attention to that. Unlike other companies which use artificial sweetness and artificial flavor

in their flavored waters. We use fresh and pure water to enhance the nutritional value of

our product and gives to an extra care to customer health. Product completely satisfies the


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demands of targeted customers, which ultimately leads towards the strong customer

loyalty for this brand.

3.14). Durability:

AQUA MAX is preserved in a way that it remains fresh even after 1 week of expired date

mentioned on the container.

3.15). Ease of use:

AQUA MAX is packed in easy to carry and easy to open container. It’s packed in different

size of bottles that are open in an easy way that are gives addictive convenience to its

customer.

3.16). Low price:

Considering the splendid quality of AQUA MAX we provide it in a price quite reasonable

and easily affordable with excellent quality. So it’s not a burden on buyer’s product. People

always preferred low price but with better quality so our product fulfill the customer want

by providing that.

3.17). Attention to convenience:

We regard that convenience to customers is the driving force which can give real boom to

our company. Customers when asked always reply that all they provide want from a

business they deal with convenience. We take extra care to make possible that our product

is available to our customer’s easily on all their nearest retailer shops through wholesalers.

Our product is not more than an arms distance to our customer.

3.18).Concentration on innovation:

Markets change too quickly these days and companies who stand still and fail to come up

with innovation fail to succeed. We expect to lounge our product in tastes which make a

difference in existing market other than the traditional waters like nestle, aquafina, kinley

etc. In packaging we are showing very attractive logos and slogans to attract the customers.


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3.19). Dedication to services and customer satisfaction:

We recognize that unsuccessful business, superior customer services is only an intermediate

step towards the goal of customer satisfaction; we even seek to go beyond customer

satisfaction and strive for customer pleasure and never changing confidence in our product.

3.1.1).Listen to customers:

To keep up with needs and demands of our customer we conduct survey and provide a

comment card with our product to be filled by the customer. By customers feedback we can

gather information about what our customers really value and what improvements they

demand from us.

3.1.2). Define superior services:

We provide superior quality at affordable or reasonable price. We listen to the customers

and fulfill their need and wants that they want to change or improve in our product.

4) THE VISION AND THE PEOPLE:

Vision:

Vision we want to see our business working round the clock to serve the customers.”

And one day we want to make ourselves available in global market and compete

against the brands like “Musafi” and “sobe flavored water”.

Mission:

To create and sell healthful, naturally oriented waters that nurture people's bodies and

uplift their spirits. Our products must be:

* Superior in quality.

* Of good value.

* Beautifully artistic.

* Philosophically inspiring.


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Objectives:

o To provide excellent quality products.

o To do extraordinary publicity of our brand name and make people aware of it.

o To give customers more and more benefits.

o All above points for the sake of good profit.

o Providing nutritious and hygienically processed flavored waters to our

customers.

o Enhancing our reputation for quality in all our operations.

o Promoting mutual trust with customers.

o Providing a safe and healthy environment to our community.

5) Why we want to do this business?

Because we want to have good profit from our business and this is a business which is not

very common in Pakistan. That is why there is still very much room available in this

business. So by uniqueness and with our different touch we’ll achieve our goals by the

grace of God.

6) Work Experience Related to My Intended Business:

Our team haven’t done any such kind of business practice therefore we don’t have any kind of

previous experience this is our first entrepreneurial project and we are doing it with full devotion

and are hopeful that will generate a high profit than the experienced people.

7) Skills and knowledge required for the business:

Following are the list of the skills and knowledge that our team require in acquiring the aim of

our heart.

Entrepreneurial skills.

Leadership skills.

Financial skills.

Marketing skills.

Management skills.

Project management skills.

Knowledge of accounting and auditing.

Benchmarking skills.

Total quality management skills.

Operating computer software skills.

Knowledge of E-commerce.

International business management skills.


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8) Personal background:

Every person in the world has lot of strengths and weaknesses therefore we team members also

have. Following are the some brief personality judging list of our team members.

Jamil Hassan Khattak.

Strengths Weaknesses Likes to work in teams.

Leadership skills.

Relations.

Risk taker.

A man of commitment.

A man of principles.

Teacher and team support.

Emotional.

Irregular in saying prayers.

Feels irritation in accepting the failure.

Samar Aziz.

Strengths Weaknesses

Proactive.

Good problem

Anticipator.

Hard working.

Punctual.

Can work under stress.

Focus on the projects.

Practical in nature.

Over concentrating on

The problems.

Shy.

Introvert.

Too emotional sometimes.

Abrar Hussain.

Strengths Weaknesses

Proactive.

Optimistic.

Convincing power.

Communication skills.

Networking power skills.

Little bit shy.

Straight forward.

Kind to everyone.


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9) Education credentials:

Names Jamil Hassan

Khattak

Samar Aziz Abrar Hussain

Matric 69% with Federal

board.

80% with Mardan

Board.

72% with Federal

board.

F.Sc Pre Engg, 59% with

Federal board.

Pre medical With

Mardan Board.

Pre Engg, 53% with

Federal board.

Bachelor in business

Administration

(BBA)

3.2 cgpa, with

Finance

specialization

3.38 cgpa, with

finance

specialization.

3.0 cgpa, with

Finance

specialization

10) Communications:

Communication is a major competency for Managers. Good interpersonal and communication

skills drive effective management and leadership.

10.1) what is Communication?

“Communication is the process of conveying information and meaning”

Effective communication involves the ability to transmit and receive information with a high

probability that the intended message is passed from sender to receiver. Communication is the sharing of information between individual or groups to reach a common

understanding in order to accomplish organizational goals and objectives.

10.11) Means of Communication:

Following are the means of the communication that will be used in our entrepreneurial firm.

Computers.

Telephones.

Extensions.

Intercom.

Pagers.

Facsimile.

Photo copier machine.

Internet.

Multimedia.


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10.12) Description and the Cash flow for the communication Equipment:

Description Cash flow

Telephone: Its one of the major tool of the communication in the firm as with telephones we can lively do voice chat with our customers suppliers, distributors, lenders, investors.

No of Telephones: 04. Cost of telephones: Rs. 3,000 per phone. Installment fee: Rs. 1,000 each. Security fee: Rs 10,000 each. Total cash out flow for telephones = Rs

56,000/-

Computer: Its one of the major tool of the communication in the firm as with laptops we can store, retrieve, manipulate our business information and deliver our product to our customers, suppliers, distributers, lenders investors.

No of Computer: 03 Cost of computers: Rs 60,000 each. Total Computers cost = 180,000/-

Pagers: These are the simple personnel telecommunication device for delivering the shorts messages we can receive a message consisting of few digits typically a phone number that user is than requested to call. It’s a type of one way numeric pager.

Casio pager Current Price = Rs. 4000/-

Photo copier machine: Xerox (Digital photocopier printing machine) Model (MDK- A3)

Cost of the photocopier machine= Rs. 127,000/-

Facsimile: A Fax short of (facsimile) is a document send over telephone line. It’s one of the cheapest sources of communication that the organizations can send and receive a printed document in seconds.

DELL D630, C2D2.0/2.2, 800FSB with various configurations at unbeatable price.

Price = Rs. 27500/-

Projector (Multimedia): Its one of the visual sources of delivering the information to the audience. It’s more user friendly than a simple data delivering source.

PHILIPS Multimedia projector in focus with remote and bag is = Rs. 16,000/-

Internet: It’s the well of Knowledge and the most utmost necessity of the firm. Internet allows to browse, sending and receiving E-mails and collecting data about the every sector of the world.

Ptcl Broad band internet Fee = Rs. 2000/- Speed = 4 Mbps.

Total Budget for the communication equipment in our firm = Rs. 412,500/-


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11) Organization:

It is a social unit of people systemically structured and managed to meet a need or to pursue

collective goal on a continuing basis. All organization has a management structure that

determines relations between functions and positions and subdivides and delegate goals,

responsibilities and authority to carry out defined task. Organizations are open system in that

they effect and are affected by the environment beyond their boundaries.

11.1) Business organization:

There are three types of organizations in the business world.

Sole Proprietorship.

Partnerships.

Corporations.

We team members are having the partnership business organization. Its best for our firm because

we all have the equal participation in preparing a project report and all three members have the

specific work assigned a firm will be so difficult to run if any one of us terminate from the

project.

12) LICENSES:

Doing business as:

AQUA MAX flavored waters.

Zoning:

I choose my site HATTAR ROADWAY 40 km away from the

capital (ISLAMABAD) of Pakistan. HATTAR is the cheapest industrial

area as compared to the surrounding areas of HATTAR.

Licenses:

Registration From National Tax Centre.

Registration from the Rawalpindi Chamber Of Commerce.

Registration from the SECP.


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13) PREMISES:

13.1) LOCATION CRETERIA:

Space Requirement:

The space requires for all the Firm and system plant and related facilities will be 3 acre.

Site analysis:

I choose my site HATTAR ROADWAY 40 km away from the capital (ISLAMABAD) of

Pakistan. HATTAR is the cheapest industrial area as compared to the surrounding areas of

HATTAR. Here we can easily approach to the cheap labor, land, suppliers, distributors and can

grip my target areas easily. So it is beneficial for us to launch our project at that site.

14) Marketing and sales:

Building customer relationship based on customer value and satisfaction is at the very heart of

modern marketing. The fold goal of AQUA MAX marketing is to attract customers by delivering

satisfaction. We want AQUA MAX (Flavored water) product to be within reach for every single

Pakistani. Yet nutritional value and quality remain the most essential ingredients in all our

brands.

Over the years, food products have evolved from mere commodities to a statement of lifestyle as

consumers get more health and quality conscious, consumer empowerment surges.

We continue to play our part in facilitating this revolution by launching value-added product

(flavored water) with different flavors like Strawberry, Raspberry, Orange, Blackcurrant, Peach,

lemon and Pineapple.

For instance, you can purchase AQUA MAX Flavored waters in several different sizes depending

on your needs.

A personal-sized 200 ml for on-the-go consumption.

A liter pack for your fridge.

Our brand is equipped with the Nutritional Compass that ensures all the nutritional information

about the product is accessible thanks to our user-friendly nutritional labeling and guidelines.

We're proud to be the only flavored Water Company in Pakistan to venture.

We have developed an intensive distribution strategy that brings our products to your door,

through effective communication, door-to-door sampling, and exciting consumer promotions.

We focus especially on Pakistan's smaller towns, where activities such as town storming,

distribution drives and intensive distributor training ensure that products are easily accessible and

visible.

Our widespread global network presents opportunities to learn from innovative techniques used

in faraway countries. Pakistan’s favorite water is now available.


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15) MARKETING MIX:

Now moving towards the marketing mix of our product we will be discussing the

product, Price, Placement and Promotion.

15.1) Product:

AQUA MAX flavored water.

15.11) Product Description:

Our product is purely natural flavored.

The usage of our product helps in reducing calories.

Our product can be use as fat free liquid fluid.

Free of carbonates.

15.12) Diabetics:

We will certify our product from a Certified Research Institution of Ministry of health.

This product may be useful in your diet on the advice of a physician.

15.13) Ingredients of our product are:

Fresh soft water.

Cane sugar.

Natural flavor.

Citric acid.

Sucralose.

15.14) Product development:

After one phase of the lifecycle of our product we will introduced our packaging in 19 Liter

bottle.


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15.15) Product Lifecycle:

Our product lifecycle is now in the phase of introduction where we launch our product in the

prevailing market of Pakistan.

15.16) Packaging:

The packaging of our product will be in the following sizes.

A personal-sized 200 ml for on-the-go consumption.

A liter pack for your fridge.

15.2) Price:

As far as price of our product is concern we think is a part of our financial plan, at this time we

are thinking about possibilities about two options one of them is Value base pricing where we

conduct customer survey and asked them what will be the suitable price for our product.

And the other one is the cost base pricing where we calculate our both variable and fixed

cost after that adding reasonable margin we will introduce the price.

15.3) Placement:

The Plant is proposed to be Located at industrial area near Hattar road. The location is selected

because it is feasible for the production at large scale.

My product is being served in the market through distribution channels that have link with super

and departmental stores.

Our marketing in charge will be responsible for the distribution strategy. We will hire vans for

the delivering of our flavored waters to the departmental stores. The marketing in charge will

remain in contact with the manager of the departmental stores so that the manager informs them

when the product run short so that it can be deliver on time.


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15.4) Distribution Channel:

We will market through wholesalers while is one of the widely used and most important channel

of distribution. This channel of distribution enables us to sell the goods in lot of to a few selected

wholesalers who sell it to retailers, who in turn sell it to the consumers.

The wholesalers acting as a middleman take title to the goods. Assume risks, appoint

dependable retailers, provide goods on cash as well as a credit and thus spreads sale on a

wider market for our product.

15.5) Promotion:

In order to compete with indirect competitors and introduce our aggressive product promotion

would be required at the launch stage. The promotional mix would include:

15.51) Advertising

Advertisements in Newspapers and sales promotions will be the tools of promotions. The

company will be launched soon and the focus in the initial months of launching will be to create

awareness of our product and to tell customers that what the company is. Ads will be given in

Jang and The News. Moreover personal selling of cards by the sales people both in corporate and

to general public would be the vital part of our product promotions. Company will also provide

special customer incentives at different events like Eid, Ramadan, New Year etc. Web ads will

be hosted free by the product that is providing dedicated line facility.

Following are the ways through which we will do our promotions.

Billboards.

Television.

Radio.

Newspapers.

Broachers.

Internet.


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Free Samples.

Are the mediums which have been powerfully used for the promotion of AQUA MAX flavored

waters.

Billboards

Keeping in mind out target market we have placed billboards near educational institutions.

We have also arranged for vehicles for mobile billboards.

Television:

Television advertisement is also arranged to hit customer’s minds to and to give them awareness

about our product. For this that is primarily for youngsters have been chosen.

Radio

Advertisement on Fm 101, Fm 103 and FM 89 is also a part of the promotional activities.


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Newspapers

Advertisement has also been given in English and Urdu newspaper. For English Dawn and for

Urdu Jang paper has been selected.

Free Samples

Free samples will be given to students by going to their schools, colleges and universities. It will

be a good way of promotion.

15.6) Sales Promotions

AQUA MAX will be promoting in the market by placing the product in each and every Shop, by

distributing the brochures in the markets, by advertising on the Cable Network. So when the

person who is also watching cable Network he will get awareness of the AQUA MAX and will

buy this flavored water.


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16) SWOT ANALYSIS:

16.1) Strength:

Our company’s strengths are as follows,

Purity Guaranteed.

Vacuum packing to maintain freshness and ensuring quality.

Introducing flavored waters first time in local brand.

Strong infrastructure facilities including storage & transportation facilities.

Convenient packing with cap.

Quality improvement.

AQUA MAX flavored waters are best for family because they provide all the healthy

ingredients.

We can compete with our competitors easily on the basis of innovation.

We can provide a better quality with reasonable price.

16.2) Weakness:

High processing and packaging costs

Single Product Company

High cost of backward integration (availability of raw material)

Limited Distribution.

16.3) Opportunities:

Healthy organic and natural drinks oriented local and global culture.

We would always need to bring some new innovations to stay in the market.

High Export potential.

With good pre-harvest planning, which is around 50% of the total production, could be

turned into potential business opportunity.

Reduction in excise and import duties on food processing machinery.

Company fulfills the customer’s wants and needs we can easily catch the market share.


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There is a market demand.

Due to its innovative nature there is a high growth rate.

16.4) Threats:

Price sensitivity and low consciousness towards quality amongst consumers.

Wide availability of sub-standard substitutes.

Heavy advertising from existing giant players.

High cost to meet international quality standards

In direct Competitors threat because they are more

experienced

Competitor prices are less than ours.

It is very hard to find good quality stuff and material.

It is very hard to keep pace in the market at once.

17) Total investment of the project:

Long term loan from banks @ 14% 90 Million

Investment by owners 6 Million Investment by the investors 54 Million

Total Investment 150 Million

17.1) Estimated Financials of the project:

IRR 21%.

Pay Back 4.9 Years

Required Rate of Return on Equity 20%

Cost of Debt 14%


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17.2) Financing of the project:

We team members have thought about three sources of financing that are as follows.

Bank loans.

Investors.

Personnel equity.

18) Financial Requirement (Capital assets):

A) Plant and Machinery Requirement:

S. No. Machine No Of Units Total Cost

1

Boiler 2

10,00,000

2 Air Compressor 2 14,00,000

3 Plate Heat Exchanger 2 40,00,000

4 Sugar Hopper 1 400,000

5 Syrup storage Tank (316 Grade Stainless steel) 2 12,00,000

6 Mixing Tank with scale 1 600,000

7 Storage Tank 2 12,00,000

8 CIP Tank 3 800,000

9 storage and shifting Tanks 1 150,000

10 Balance Tank 1 75,000

11 Turbine 2 11,00,000

12 Fork Lifter 2 10,00,000

13 Shrinking Wrapping/ Tray Making Machine 2 350,000

14 Conveyor 10,00,000

15 Misc Fitting /Piping, Motors, Pumps, Valves 28,00,000

A) Total

15,275,000


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B) Packaging Machinery Requirement:

S. No. Machine No Of Units

Total Cost

1

DMARK PLASTIC MOULDING

MACHINE

(DMK-R16)

1

61,407,000

2 Freight 1 60,000

3 Security Equipment and applications 500,000

B) Total 61,967,000

C) Cold Store Machinery and Others Equipment:


1

Electric Generator 1

24,00,000

2 Cold Storage Machinery - 52,00,000

3 Tools & Equipment - 600,000

4 Laboratory Equipment - 12,00,000

C) Total 94,00,000

D) Land and Building Requirement:

S. No. Machine Area (Sq. Ft.) Total Cost

1

5 Acre Land at HATTAR Estate

45,00,000

2 Construction 43500 1,76,45000

D) Total 22,145,000


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E) Furniture and Equipment Requirement:


1

AC 5@50,000

250,000

2 Electrical Fittings 1@200,000 200,000

3 Furniture 1@350,000 350,000

4 Computers 10@28000 280,000

5 Printer 2@18000 36,000

6 Fax 2@10000 20,000

7 Scanner 1@10000 10,000

8 Photocopier 1@75000 75,000

E) Total 12,21,000

F) Vehicles Requirement:

S. No.

Machine No. Of Units Total Cost

1 Delivery Vehicles (Hyundai

Shehzor) 4@700,000

28,00,000

F) Total 2,800,000


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Total Capital Asset

A)

Plant and Machinery

1,52,75000

B) Packaging Machinery Requirement

6,19,67000

C) Cold Store Machinery and Others Equipment

94,00,000

D) Land and Building Requirement

2,21,45000

E) Furniture and Equipment Requirement

12,21,000

F) Vehicles Requirement

28,00,000

Total 112,808,000

18.1) Financial Requirements (Working Capital):

S. No. Cost

Amount

1

First Three Months Salaries (w-1)

2,07,3000

2 First Three Months Utilities charges (w-2) 810,000

3 Misc. Expenses 10,00,000

4 Inventory( Raw Material 2 Months) 6,218,176

5 Permanent Portion Of Working Capital In the form of

Cash 10,500,000

Total 20,601,176


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Working 1:

S. No. Designation

No Of

Persons

Monthly

Salary

Total Cost (Month *

3)

1

G.M/CEO/Owner

1 100,000

300,000

2 Production Manager 1

50,000 150,000

3 Marketing Manger 1

50,000 150,000

4 Controller Finance/AC 1

50,000 150,000

5 HR Admin Officer 1

50,000 150,000

6 Assistant Production

Manager

1 30,000 90,000

7 Procurement Officer 1

30,000 90,000

8 Assistant Marketing

Manager

1 30,000 90,000

9 Payable Officer 1

30,000 90,000

10 Security Guard 9

10,000 each 90,000

11 Receivable Officer 1

30,000 90,000

12 Recruitment/Compensation

Benefit Officer

1 30,000

90,000

13 Electrician 2 2@8,000=

16,000 48,000

14 Chemist 1

15,000 45,000

15 Supervisor 5 5@10,000=

50,000 150,000

16 Machine Operator/Labor 8 8@5000=

40,000

120,000

17 Packing Officer 1

20,000 60,000

18 Sales and Distribution In

charge

1 40,000 120,000

19 Sales and Distribution

Officer

2 2@20,000=

40,000 120,000

Total

2,073,000


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Working 2

S. No. Utility

Total Monthly Cost

1

Electricity

150,000

2 Gas or Furnace oil

Lubricants ETC

25,000

3 Diesel for Generator 20,000

4 Water 50,000

5 Telephone 25,000

Total 270,000


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19) Accounting and Cash flows:

Projected Balance Sheet

Assets

Current Assets:

Cash and Bank Balance…………………………………………….. Rs. 28,883,000

Raw Material Inventory ……………………………………………. Rs. 6,218,176

Non Current Assets:

Plant and Machinery ……………………………………...…………Rs. 15,275,000

Packaging Machinery ………………...……………………………..Rs. 61,967,000

Cold Store Machinery and Others …………………………………..Rs. 9,400,000

Land and Building …………………………………………………..Rs. 2,21,45,000

Furniture and Equipment …………...……………………………….Rs. 1,221,000

Vehicles ………………………………….………………………….Rs. 2,800,000

Intangible Assets:

Preliminary Expenses .........................................................................Rs. 2,000,000

Total Assets………………………………………………...……….Rs. 149,909,176

Equity & Liabilities

Owner’s Equity ……………………………………………………..Rs. 54,163,670

Long Term Liability ………………………………………………...Rs. 81,245,506

Total Equity and Liabilities ………………………………………Rs. 149,909,176


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20) Projected income Statement:

Projected Income Statement

Sales ………………………………………………………… Rs. 33,69,60,000

Less: Cost of goods Sold:

Raw Material ………………………………………………....Rs. 20,14,73,044

Labor ………………………………………. ……………….. Rs. 1,39,72000

Utilities ……………………………………………. ………...Rs. 1,32,40000

Total Cost of goods Sold ………………………… ………….Rs. 22,86,85,044

Gross Profit ………………………………………………….Rs. 1,08,27,4956

Less: General Admin and Selling Expenses

Salaries ………………………………………………….. …..Rs. 82,92000

Amortization of preliminary Expenses ……………………...Rs. 400,000

Depreciation Expense ………………………………………..Rs. 1,02,84600

Maintenance Expense………………………………………...Rs. 12,61200

Selling and Distribution………………………………………Rs. 1,62,82,244

Miscellaneous Expense…………………………………….....Rs. 10,00,000

Total of General Admin and Selling Expenses……………….Rs. 3,75,20,044

Operating Income …………………………………………..Rs. 7,07,54,912

Less: Financial charges @14% per annum…………………...Rs. 11374370

Earnings after interest …………………………………...…...Rs. 59380542

Cooperate Tax Rate (39%)…………………………..……… .Rs. 23158411

Earning After interest and Tax…………………….……. …..Rs. 36222131

Net Profit……………………………. …………….Rs. 36222131


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21) E-Commerce:

21.1) E-Commerce Defined:

E-Commerce, which is short for electronic commerce, is the process used to distribute, buy, sell

or market goods and services, and the transfer of funds online, through electronic

communications or networks. Electronic commerce is commonly referred to as online

commerce, Web commerce, E-Business, E-Retail, E-Commerce.

21.2) what are the Benefits of E-Commerce & E-Business?

The processes involved with conducting business on the Internet and opening an E-Commerce

shop to sell from have several benefits to both merchants and the customers who buy from them.

The biggest benefits of conducting business Online include a cheaper upfront cost to the

merchant, it's easier to set up and open the store and it's faster to get an online business up,

running and making sales.

Following are the advantages.

Helps Create New Relationship Opportunities.

Open for Business 24x7.

Increases Brand or Product Awareness.

Helps Establish Customer Loyalty.

Potential to Increase Overall Business Sales.

Potential to Increase Company Profits.

Potential to Decrease Some Costs.

Expands Geographical or Customer Reach.

Allows for Smaller Market or Niche Targeting.

Allows for Easier Delivery of Information.

21.3) what is E-Commerce Marketing?

E-Commerce Marketing Defined:

E-Commerce marketing can be defined in many different ways and can include both Online and

Offline campaign strategies. Most often, it's considered to be the marketing of goods and

services over the Internet or any other electronic network (like a mobile phone). E-Commerce

marketing is commonly referred to as E-commerce optimization, online marketing, search engine

marketing, search engine optimization, merchant marketing and many more variations of those

terms.


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21.4) what are the Benefits of E-Commerce Marketing?

Following are the benefits of the E-commerce.

Tax Breaks for Conducting Business Online.

Cheaper than Print Advertising.

Interactive Ads or Marketing Campaigns.

Flexible Ad or Marketing Campaigns.

Builds Lasting Customer Relationships.

Helps Build Brand Credibility.

Gather Feedback from Customers.

Conduct Cheap Market Research.

Lower Startup Costs Increase Efficiency.

Lower Startup Costs Increase Profitability.

Increases Growth or Opportunity Potential.

Global Market Reach.

Potential to Market Any Product.

Flexible Schedule or More Personal Time.

Ability for Multiple Revenue Streams.

Helps Promote Brick-and-Mortar Businesses.

Allows for Faster, Easier, Efficient Discovery.

Potential to Improve Accessibility.

Potential to Improve Usability.

Easier to Maintain Over Time.


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