8/7/2019 ed project 123

1/50

ENTREPRENEUERSHIP DEVELOPMENT REPORT

ON

CONSUMER DURABLES

Submitted in partial fulfilment of the requirement for the award of degreeof Bachelor of Business Administration of Christ University, Bangalore-

560029

By,

MR. ANUBHAV AGARWAL(0911508)MR. UTKARSH AGRAWAL(0911541)

Under the guidance of,

Prof. John Paul

Department of Management StudiesChrist University, Bangalore-560029

2010-2011

8/7/2019 ed project 123

2/50

DECLARATION

I hereby declare that, this report titled, Entrepreneurship Development Report ,project work carried out by me under the supervision of Prof.JOHN PAUL of Department of

Management Studies, Christ University, Bangalore. This work previously has not formed part

of any basis for the award of any degree or diploma offered by any institution or university.

This is a record of bonafide and original work submitted by me in partial fulfilment of

the requirements for the award of degree of Bachelor of Business Administration.

Place: Bangalore MR. ANUBHAV AGARWAL(0911058)

Date: MR. UTKARSH AGRAWAL(0911541)

8/7/2019 ed project 123

3/50

ACKNOWLEDGEMENT

I would like to express my profound gratitude to all those who have been instrumental in the

preparation of this Entrepreneurship Development Report . I wish to place on records, my

deep gratitude to my project guide JOHN PAUL, for guiding me through this project with

valuable and timely advice.

I would like to thank Dr (Fr). Thomas. C. Mathew, Vice Chancellor and Dr Jain Mathew,

HOD, for their encouragement.

Last but not least, I would like to thank my parents and friends for their constant help and

support.

ANUBHAV AGARWAL (0911508)

UTKARSH AGRAWAL (0911541)

8/7/2019 ed project 123

4/50

CERTIFICATE

This is to certify that, this project report titled Entrepreneurship Development Report ,

submittedto the Christ University [Department of Management Studies] in partial fulfilment

of the requirements for the award of the Degree of Bachelor of Business Administration, is a

record of the original and independent work carried out by Anubhav Agarwal (0911508)

and Utkarsh Agrawal (0911541) under my guidance and supervision.

This has not previously formed the basis of the award of any degree, diploma awarded by any

institution/ university.

Place: Bangalore

Date : JOHN PAUL

8/7/2019 ed project 123

5/50

TABLE OF CONTENTS

SLNO.

CONTENTS PAGES

1 CHAPTER 1: INTRODUCTION

2

CHAPTER 2:PROJECTFEASIBILITY STUDY

3CHAPTER 3:MARKETING

ANALYSIS

4 CHAPTER 4:FINANCIALANALYSIS

5CHAPTER 5: PRODUCTION AND

OPERATION

6 CHAPTER 6: HUMAN RESOURCE

7 BIBLIOGRAPHY

8 CONCLUSION

8/7/2019 ed project 123

6/50

8/7/2019 ed project 123

7/50

Profile of the entrepreneurs :

ANUBHAV AGARWAL

AGE: 18

GENDER: MALE

EDUCATION: Currently Pursing BBA at Christ University

PERMANENT ADDRESS: Piyarelalagarwalla&co,sevoke

road,siliguri,Darjeeling dist,734001

CONTACT NO. 9535207018

EMAIL ID: Coolanubhav2002@yahoo.co.in

UTKARSH AGRAWAL

AGE: 19

GENDER: MALE

EDUCATION: Currently Pursing BBA at Christ University

PERMANENT ADDRESS: 7/88 Tilak Nagar

Kanpur-208002

CONTACT NO. 9379947611

EMAIL ID: Utkarsh1612@gmail.com

8/7/2019 ed project 123

8/50

Nature of Business:

ABS Consumer Durables pvt ltd. is basically a small scale industry which manufactures TV

with built in inverter and digi card,ABS also manufactures backup systems along with the TV

and separately for the household already having a TV. ABS would be targeting all metro and

major cities in india and aim every household gets the latest technology at their place and

make their TV watching experience qualitative.

Nature Manufacturing and installing.

Size Small-scaled

Sector Electronic Industry

Goods Produced TV with built in inverter and digi cardback

up systems along with TV and separately.

Executive Summary

Suppose youare watching a live cricket match in which your home country is playing and it is

the last over of the match. As the ball is about to be hit, suddenly the power goes. What

happens next? You dont know who wins or who loses. Although you come to know after

some time through someone else orelsewhere the match would have have definitely been

better when watching live.

What if your TV set is still on in spite of a power cut and you end up successfully watching

the whole match. To make this possible, ABS has decided to develop two new products andlaunch them in the Consumer Durables Market of India. Our products are:

1.

Colour Television with built -in Inverter and Digi card.

2.

Television Back-up System

3.

Television Back-up System (Digi Card and DVD features included).

8/7/2019 ed project 123

9/50

India is a countrywhich observes frequent power cuts for long hours in a day. India suffers

from a severe shortage of electric capacity. According to the World Bank, roughly 40 percent

of residences in India are without electricity. In addition, blackouts are a common occurrence

throughout the countrys main cities. The World Bank also reports that one-third of Indianbusinesses believe that unreliable electricity is one of their primary impediments to doing

business.

With the motive to know the feasibility of the business idea, we contacted Mr.Suresh, an

Electronic Engineer. We explained him about our project and idea to develop a TV with

built-in Inverter and Digi Card. He understood our idea and decided to help us. At first, he

said that the idea was good but it would be difficult to prepare a TV like that. We told him

that if Laptops could work on a battery, then why cannot the TV. Then he told that to make

this possible he would have to experiment with the TV, then only he would be able to tell us

whether such a product is feasible or not. The following day he informed us that such a TV is

possible to prepare and we were able to convince him to prepare a prototype of the TV. We

bought all the components required to manufacture such a TV

fromSandhyaElectronics,M.GRoad, Bangalore. In addition we bought a battery, Uplus US

12v 7.6AH, an Inverter Board and a Digital Set top box. Mr. Suresh assembled all the

components and the TV was prepared and was tested for back up successfully. The TV ran

for 3 hours with the help of battery.

With the success of the TV with built in inverter and Digi Card, we also came up with an idea

of developing a back-up system for households who already have TVs. The purpose of the

back-up would be to boost the electrical capacity of the TVs. Mr Suresh gave us the idea of a

system which would have two 12V, 7.5AH batteries, DVD loader and MPEG board which

will work in similar lines as the UPS but would add up more attributes like DVD and a Digi

Card slot. The back-up system was also tested successfully

.

8/7/2019 ed project 123

10/50

Our objectives :

To ensure safety of theproduts.

To improve technology in the nation.

To maintain standard in our goods.

To reduce the electricity usage from households.

VISION AND MISSION:

Vision: To create a world class accessible and feasible technological

platform.

Mission: We strive to provide the ever needing electronic requirements of our

customers by offering quality service, genuinely and firm up relationship with

our customers.

Values

We pledge to operate within the highest ethical standards at all times, we will strive to

exhibit and encourage the following characteristics in all service and tt with our clients .,

by following values like:

Honesty

Service

Civility

8/7/2019 ed project 123

11/50

Timely

Transparency

INTRODUCTION TO SMALL SCALE INDUSTRY

Small Scale Industries may sound small but actually plays a very important part in the

overall growth of an economy. Small Scale Industries can be characterized by the unique

feature of labour intensiveness. The total number of people employed in this industry has

been calculated to be near about one crore and ninety lakhs in India, the main proponents of

Small scale industries.

The importance of this industry increases manifold due to the immense employment

generating potential. The countries which are characterized by acute unemployment problem

especially put emphasis on the model of Small Scale Industries . It has been observed that

India along with the countries in the Indian continent have gone long strides in this field.

Advantages associated with Small Scale Industries :

y

This industry is especially specialized in the production of consumer commodities.

y

Small scale industries can be characterized with the special feature of adopting the

labour intensive approach for commodity production. As these industries lack capital,

so they utilize the labour power for the production of goods. The main advantage of

such a process lies in the absorption of the surplus amount of labour in the economy

who were not being absorbed by the large and capital intensive industries. This, in

turn, helps the system in scaling down the extent of unemployment as well as poverty.

y

It has been empirically proved all over the world that Small Scale Industries are

adept in distributing national income in more efficient and equitable manner among

the various participants in the process of good production than their medium or larger

counterparts.

8/7/2019 ed project 123

12/50

y

Small Scale Industries help the economy in promoting balanced development of

industries across all the regions of the economy.

y

This industry helps the various sections of the society to hone their skills required for

entrepreneurship.

y

Small Scale Industries act as an essential medium for the efficient utilization of the

skills as well as resources available locally.

Small Scale Industries enjoy a lot of help and encouragement from the government through

protecting these industries from the direct competition of the large scale ones, provision of

subsidies in the form of capital, lenient tax structure for this industry and many more.

INTRODUCTION TO CONSUMER DURABLES INDUSTRY

Before the liberalization of the Indian economy, only a few companies like Kelvinator,

Godrej, Allwyn, and Voltas were the major players in the consumer durables market,

accounting for no less than 90% of the market. Then, after the liberalization, foreign players

like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa came into the picture. Today, these

players control the major share of the consumer durables market.

Consumer durables market is expected to grow at 15-20% in 2011-2012. It is growing very

fast because of rise in living standards, easy access to consumer finance, and wide range of

choice, as many foreign players are entering in the market.

On the flip side, the presence of a large number of players in the consumer durables market

sometimes results in excess supply.Consumer durables are the products whose life

expectancy is at least 3 years. These products are hard goods that cannot be used up at once.

With easy availability of finance, emergence of double-income families, fall in prices due toincreased competition, government support, growth of media, availability of disposable

incomes, improvements in technology, reduction in customs duty, rise in temperatures,

growth in consumer base of rural sector, the consumer durables industry is growing at a fast

pace. Given these factors, a good growth is projected in the future, too.

8/7/2019 ed project 123

13/50

The penetration level of consumer durables is very low in India, as compared with other

countries. This translates into vast unrealized potential.

For example, in case of color televisions (CTVs), the penetration level of various countries is:

India 24%

Brazil 11%

China 98%

US 333%

France 235%

Japan 250%

A ccording to National Council for A pplied Economic Research (NC A ER), Indian consumer

class is growing at a fast rate. This in turn is benefiting the consumer durables

manufacturers.

The Indian Consumer Durables Industry can be segmented into 3 Key Groups:

8/7/2019 ed project 123

14/50

1)

White Goods

Refrigerators

Washing Machines

Air Conditioners

Speakers and Audio Equipments

2)

Kitchen Appliances/Brown Goods

Mixers

Grinders

Microwave Ovens

Iron

Electric Fans

Cooking Range

Chimneys

3)

Consumer Electronics

Mobile Phones

Televisions

MP3 Players

DVD Players

VCD Players

Several Key Trends Driving Growth in the Sector:

Income growth and availability of financing

Disposable income levels are rising and consumer financing has become easier.

8/7/2019 ed project 123

15/50

Increased affordability of products

Advanced technology and increasing competition are narrowing the price gap and the

once expensive appliances are becoming cheaper.

Increasing share of organised retail

Urban and rural markets are growing at the annual rates of 7% 10% and 25%,

respectively, with organized retail expected to garner 10% share by 2010 from a mere 3%

share at present.

Entry of heavyweight retail players is increasing competition

Competitive evolution of organised retail due to the entry of heavyweight players like

Croma, E Zone and Reliance Digital is stimulating the demand through exposure to

experiences.

Increasing appreciation of the Rupee

Raw materials constituting almost 75% of the costs are mostly imported and will now be

cheaper.

Consumer Durables is one of the fastest growing industries in India.

Industry sales were US$ 4.5 billion in value, in 2006 -07 and more than 7 million units in

Volume terms.

8/7/2019 ed project 123

16/50

A strong growth is expected across all key segments

Projected Growth Rates

P ROJECTED GROWTH RA TE

Colour TVs 25-30%

Refrigerators 18-22%

Washing Machine 15-20%

Air Conditioners 32-35%

Others(including VCDs and DVDs) 35-40%

Overall, the sector is a dynamic one, with significant growth opportunities.

8/7/2019 ed project 123

17/50

Factors affecting the Consumer Durables Market:

Threat of New Entrants

Most current players are global players

New entrants will need to invest in Brand, Technology and Distribution.

Supplier Power

Indigenous supply base limited - most raw materials are imported

Competitive Rivalry

Number of well established players, with new players entering

Good technological capability

Many untapped potential markets

Customer Power

Multitude of brands across price points - wide variety of choice for customers

Threat of Substitutes

Unbranded products and cheaper imports could enter the market.

8/7/2019 ed project 123

18/50

Some of the Attractive Areas for Investment Include:

High End Colour TVs

Plasma display panels and liquid crystal display TVs have registered an average growth of

more than 250% in 2006-07 and the trend is expected to continue.

Split Air-conditioners

Split ACs have been growing at a much faster rate than window ACs - Growth of 97% in

2006-07 as compared to a 32% growth of window ACs.

Mobile Phones

Production is expected to grow at a compound annual growth rate (CAGR) of 28.3% from

31 million units in 2006 to 107 million units in 2011

Low mobile penetration and favourable government policies are driving mobile phone

Original Equipment Manufacturers (OEMs) to set up manufacturing facilities in India.

Distribution and Retail

With the rural and semi-urban markets creating opportunity and an almost sedentary urban

market, the need to have a strong distribution network is crucial for the companies to remain

price competitive.

8/7/2019 ed project 123

19/50

Attractive States for Investment

Key parameters used for determining attractiveness of states:

Incentives for manufacturing sector

Consolidation of factors, including skilled workforce

P roximity to demand centres

P roximity to ports for raw material imports

Maharashtra

Uttar Pradesh and

Tamil Nadu

are attractive locations for investment in manufacturing consumer durables.

Several global players are well established in the Consumer Durables sector in India, with

competition from strong Indian players as well.

Some of the key players in the sector in India include:

Samsung

Philips

LG

Whirlpool

Nokia

Sony

8/7/2019 ed project 123

20/50

About TV

Television (TV) is a widely used telecommunication medium for transmitting and receiving

moving images, either monochromatic ("black and white") or color, usually accompanied by

sound. "Television" may also refer specifically to a television set, television programming or

television transmission. The word is derived from mixed Latin and Greek roots, meaning "far

sight": Greek tele ( ), far, and Latin visio, sight (from video, vis- to see, or to view in the

first person).

Commercially available since the late 1930s, the television set has become a common

communications receiver in homes, businesses and institutions, particularly as a source of

entertainment and news. Since the 1970s the availability of video cassettes, laserdiscs, DVDs

and now Blu-ray Discs, have resulted in the television set frequently being used for viewing

recorded as well as broadcast material.

Although other forms such as closed-circuit television (CCTV) are in use, the most common

usage of the medium is for broadcast television, which was modelled on the existing radio

broadcasting systems developed in the 1920s, and uses high-powered radio-frequency

transmitters to broadcast the television signal to individual TV receivers.

Broadcast TV is typically disseminated via radio transmissions on designated channels in the

54890 megahertz frequency band. Signals are now often transmitted with stereo and/or

surround sound in many countries. Until the 2000s broadcast TV programs were generally

recorded and transmitted as an analog signal, but in recent years public and commercial

broadcasters have been progressively introducing digital television broadcasting technology.

A standard television set comprises multiple internal electronic circuits, including those for

receiving and decoding broadcast signals. A visual display device which lacks a tuner is

properly called a monitor, rather than a television. A television system may use different

technical standards such as digital television (DTV) and high-definition television (HDTV).

Television systems are also used for surveillance, industrial process control, and guiding of weapons, in places where direct observation is difficult or dangerous.Amateur television

(ham TV or ATV) is also used for experimentation, pleasure and public service events by

amateur radio operators. Ham TV stations were on the air in many cities before commercial

TV stations came on the air.

8/7/2019 ed project 123

21/50

Chapter 2: Project Feasibility Study

8/7/2019 ed project 123

22/50

Feasibility of the Project:

Because of the frequent power cuts and the growing need for tv entertainment across the

world there is a immense need of a product in the market which runs on battery, even if there

is a power cut. On the other hand the World Cup and IPL 4 are on its way starting from

February. People in India would not prefer to miss even a single ball of a match and hence

they would not mind shelling out their money to buy our products which would make sure

that the entertainment doesnt stop, further solving their electricity crisis. Thus we can expect

our products to have a great demand in the markets and as our vision statements states we

would make our products feasible and accessible.

SWOT ANALYSIS:

Strength

1.

Presence of established distribution networks throughBhanshanConsumer Durables in

both urban and rural areas of Karnataka .

2.

The viewers would be able to watch free 60 TV channels along with 20 radio

channels provided by Doordarshan.

3.

Built in inverter facilitates working of TV without electricity.

4.

Back-up system products is economical which can be afforded by masses.

5. Digi card facility which will not require separate device.

6.

Well experienced and professional technicians to assemble the products.

8/7/2019 ed project 123

23/50

8/7/2019 ed project 123

24/50

Threats

1.

Poor government spending on infrastructure

2.

Higher VAT and excise duties on manufacturing and distribution.

3.

Strong segment players already existing around the world.

4.

Cheaper products produced and exported from Singapore, China and other Asian

countries worldwide.

5.

Difficult to establish brand name.

PRESENT AND FUTURE SCENARIO

Most selling are color TVs and refrigerators but growth is mostly seen in LCD TVs and

expensive electronic items. Also the growth is fast in DVD players because of the availability

of cheap software. The current size of TV industry at 13 million units of CRT TVs and for

the year 2009 a 5 percent growth in CRT based TVs and a whopping 42 percent growth in

LCD TVs

In TV segment, the 14, 20 and 21 inches segments are expected to be the key contributors to

the overall industry growth.There are more than a dozen companies operating in the white

goods segment, which is witnessing excess capacity build-up in ACs, refrigerators, TVs and

washing machines. As a result supply will continue to outstrip demand. As has been the case

in the last three to four years, prices would continue to remain depressed and margins will be

under pressure. However, this not likely to discourage the MNCs from leaving the country as

they have outlined ambitious plans for India and have made substantial investments. Indian

manufacturers may find it difficult to keep up with sustained pressure from the MNCs and

this segment could witness some consolidation in future. Our interaction with companies

indicates that MNCs (especially the Korean majors) are eyeing market share in the initial

phases as opposed to profitable growth. Most importantly TV manufacturers will be focusing

8/7/2019 ed project 123

25/50

more and more on outsourcing rather than manufacturing on their own. Large companies

even now are offloading the production to original equipment manufacturers.

COMPETITORS

The entrenched position of the Indian market leaders in CTVs like Videocon, BPL and

Onida has been challenged by the MNCs such as LG, AIWA, Akai, Panasonic, Samsung,

Sony, Philips and Sharp; some in a perceptible way and others threatening to do so.

y

LG is the market leader with 26% market share followed by Samsung and Onida.

y

On the other hand, Samsung is far stronger than LG globally. The company expects

the Indian arm to contribute 10% of the total worldwide turnover by 2010.

y

Videocon, another major player has managed to hold its own in the midst of the

onslaught from the Korean majors, though profits have suffered.

y

Other large Indian companies in the top of the list are Mirc Electronics, BPL, Sony,

Philips, Akai, Sansui, Aiwa, and Toshiba and now Hyundai are the other foreign

brands in the market.

CHALLENGES

The main challenge is making it accessible to the target customer market. In India still a good

number of people do not have the purchasing power to buy some necessity products. So, the

main concern out here would be to carefully price the product as the TV is affordable to the

masses. The second challenge would be to tackle with the decreasing demand of CRT TVs as

LCD screen TVs are taking over the market. On an average the CRT screen TVs are expected

to increase by 4 percent in 2010 but the LCD technology way ahead by 48 percent. On the

brighter side this problem can be overcome as LCD screens are very costly and cannot be

afforded by a layman which is possible in the case of CRT screen.

8/7/2019 ed project 123

26/50

WORST CASE SCENARIO AND CONTIGENCIES

It would be difficult for our company to cope with the establ ished billion dollar companies

like Samsung, Sony, and Toshiba etc. ABS Consumer Durables P vt. Ltd falls under small scale

unorganized TV manufacturing sector and the growth of unorganized sector in comparisonto the private billion dollar companies is very less. The consumers in India are more devoted

to quality when it comes to electric and electronic products. And therefore these big

established and multinational companies have been making a mark when it comes to quality

selection.

Another problem which may arise is the durability of the battery. Lithium powered cells

have the limitation of loosing durability as they become old. As these batteries become old

they start losing their charge retention capacity which may reduce the performance of thebatteries. Further with the rapid and mass growth of TFT and LCD technology the market for

CRT screen TVs seem to undergo extinction. Our product being concentrated initially with

CRT technology faces a very limited growth in the Tier I and Tier II cities where people have

the purchasing power to buy LCD screen TVs which adds to thei r lifestyle and status.

8/7/2019 ed project 123

27/50

CHAPTER 3 :MARKETINGANALYSIS

8/7/2019 ed project 123

28/50

Target Market

Initially, the plan is to target the cities where Bhanshan Consumer Durables has its branches.

It has in total 14 branches in Bangalore and Mysore. Since Mysore is easily accessible to the

rural people near Bangalore and Mysore. Bhanshan Consumer Durables through its

marketing strategies will advertise to the rural people. Our target market will be mostly the

rural population since they face a lot of power cut problems in a day and also because they

do not have the purchasing power to buy high end LCD TVs which would also consume a lot

of electricity. After a couple of years, we will expand gradually establishing our

ABSXP erience exclusive showrooms to different cities in the country.

Marketing Mix

Product

We have come up with ideas of inventing three products and place them in the consumer

durables market of India. The products are as follows:

1.

Colour Television with built -in Inverter and Digi card.

2. Television Back-up System

3.

Television Back-up System (Digi Card and DVD features included).

8/7/2019 ed project 123

29/50

Colour TV with Built-In Inverter and Digi Card Components and the pri ces of components:

Sl.

No .

Components P rice

1. P icture Tube 2500

2. Cabinet with RC 630

3. P rinted Circuit Board 900

4. Speakers 100

5. Degausser coil 55

6. Inverter board (12V to 220V 300W) 375

7. Battery ( U plus 12V, 7.6 AH ) 530

8. MP EG Board 380

9. SMP S P ower Supply 140

10. VFD Display 90

11. Micro Switch 45

12. Screws 45

13. Wire Accessories 45

14. AV Socket ( 6 numbers ) 45

15. Carton Box with Thermocol 280

16. Monogram 20

Additional Component on demand

y

LNB Dish

8/7/2019 ed project 123

30/50

8/7/2019 ed project 123

31/50

Television Back-up system:

The system will provide back-up facility to the television sets in case of power cuts. The

following are the components required to manufacture the systems:

Sl. No. Components Price

1. Two batteries ( 12V, 7.5 AH ) 1060

2. Inverter board ( 12V DC to 220V AC, 300W) 375

3. Cabinet 300

4. Screws 45

5. Wires 45

6. Sockets ( 2 numbers ) 45

7. Switch 15

8. Taggle Switch 20

9. LED ( 4 numbers ) 20

10 Solar connector 20

11 Carton Box 55

Additional Components on Demand:

y

Solar Panel

8/7/2019 ed project 123

32/50

Television back-up system with Digi Card and DVD features:

The system will also have the features of DVD player and built-in digi-card. The following

are the components which are required to manufacture the system:

Sl. No. Components Price

1. Two batteries ( 12V, 7.5 AH ) 1060

2. Inverter board ( 12V DC to 220V AC, 300W) 375

3. Cabinet 300

4. Screws 45

5. Wires 45

6. Sockets ( 2 numbers ) 45

7. Switch 15

8. Taggle Switch 20

9. LED ( 4 numbers ) 20

10. DVD Loader 55

11. MPEG Board 375

12. Lens and Spindal Motor 230

13. Digi Card 380

14. Speakers 200

15. Solar Connector 20

16. VFD Display 90

8/7/2019 ed project 123

33/50

17 Carton box 75

Additional Components:

y

LNB Dish

y

Solar Panel

Price

The company would adopt cost plus pricing strategy in which a certain amount of profit will

be added to the cost to arrive at the selling price. The following are the selling prices which

we would charge for the first year to Bhanshan consumer Durables Pvt. Ltd.

Sl.

NoProducts

Selling Priceper unit (1 st

year)

1 Colour Television with built-in Inverter and Digi card 7000

2 Television Back-up System 2400

3

Television Back-up System (Digi Card and DVD features included).

4000

8/7/2019 ed project 123

34/50

Place

The companies office will be situated atNo 118, 3 rd main, 4 th cross, electronic city,

Bangalore-86. We will hire 2250 sq. ftfloor in the building where the assembling of all theinitial 100 TV sets will be done. The customer care will also be there in the same floor. After

the complete assembling of the TV sets are completed it would be packed and dispatched to

Bhanshan from where customers will be able to purchase our products.

Promotion

Since the marketing will be handled by Bhanshan, the promotion of our products will also be

taken care by Bhanshan. Bhanshan will advertise our brand products on billboards and

hoardings and distribute leaflets to people in and around Bangalore and Mysore.

Product Line

ABS Consumer Durables Private Limited will have the following range of products:

1.

ABS Colour Television with built-in Inverter and Digi card.

2.

ABS Television Back-up System

3.

ABS Television Back-up System (Digi Card and DVD features included). .

USP

ABS TVs: Built in inverter and Digi-card.

ABS BACK UP SYSTEMS: Solarconnector, DVD and Digi-card facilities available.

8/7/2019 ed project 123

35/50

Advert i ement 1

Because

Entertainment

should

not be stopped!!

8/7/2019 ed project 123

36/50

Advert i ement 2

TH E ALL NEW ABS CONSUMER DURABLES

ABS Consumer Durables Pvt Ltd.

BHANSHAN

8/7/2019 ed project 123

37/50

STP

Segmentation

The consumer markets for our products in segmented on the following bases :

Geographic: Initially we will focus on various cities and towns of Karnataka. Later, other

major cities of South India such as Chennai, Hyderabad, Cochin, etc will also come under our

segment area.

Demographic: All age groups and people from various income levels will be covered as TV

is view by each and every person.

Behavioural: Segmented as products to be used even when there is a power cut.

Targeting

Initially, the cities and towns where Bhanshan Consumer Durables Pvt. Ltd will be targeted ie

Mysore, Bangalore,Mandya, ChamrajNagar, KushalNagara, Gonakappa, Hunsur. Later major

cities of South India will also be targeted.

8/7/2019 ed project 123

38/50

Positioning

In the consumer durables market of Karnataka initially with the Brand name ABS.

TV- ABS Televisions

Tagline - Born to Entertain!!!

Back-up System-ABS Television Back-up Systems

Tagline - BecauseEntertainment should not stop!!

8/7/2019 ed project 123

39/50

CHAPTER 4-FINANCIAL ANALYSIS

8/7/2019 ed project 123

40/50

Initial Investment of ABS:

Initial Investment of ABS Consumer Durables Pvt Ltd will be Rs 40,00,000 divided intoshares of 100 each.

Sources of Funds:

Both the partners Anubhav Agarwal and Utkarsh Agrawal will bring in Rs 750000 each fromtheir savings.

Loan of Rs 25,00,000 is raised from Union Bank of India @ 13%

Start up Expenses SL. NO. Particulars Amount1. Legal expenses ( Registration and Incorporation and

Manufacturing licence )

2,00,000

2. Office cum service centre advance 2,50,0003. Furniture 2,50,0004. Computers and Electronic tools 2,00,0005. Purchase of Equipments 10,00,0006. Advertisement for HR 25,0007. Telephone deposit 10008. Stationery 10,0009. Goods auto ( Tata Ace ) 2,50,00010. Other miscellaneous expenses 14000

Total start up expenses 22,00,000 Monthly expenses : Salary :Rs. 1,80,000 Petty expenses :Rs. 7500 Center cleaning and Maintenance :Rs. 2000 Electricity :Rs. 12000 Water :Rs. 2000 Telephone :Rs. 5000

8/7/2019 ed project 123

41/50

Pay back period: Loan will be repaid Rs.5,00,000every year. The loan repayment would be done in 5 yearsi.e., by the year of 2015 which is explained below.

TOTALEXPENDITURE

TOTAL INFLOW

YEAR 2011 25,00,000 5,00,000

YEAR 2012 20,00,000 5,00,000

YEAR 2013 15,00,000 5,00,000

YEAR 2014 10,00,000 5,00,000

YEAR 2015 5,00000 5,00,000

YEAR 2016 0 5,00,000

Salary break up:

Designation

No. of employees

Salarymonthly

Annualsalary 2011

Annual salary2012

Annualsalary 2013

Directors

2 48000 576000 624000 672000

General Manager

1 18000 216000 240000 264000

Electronic Engineers 14 175000 2450000 2618000 2786000

Office Receptionist

2 12000 144000 168000 192000 Driver

1 5000 60000 66000 72000

Security Guard

1 4500 54000 60000 66000

Assistants

4 16000 192000 216000 240000

TOTAL

25 278500 3692000 3992000 4292000

Depreciation: under straight line method PARTICULARS AMOUNT PERCENTAGE 2011 2012 2013

FURNITURE 250000 12 30000 30000 30000COMPUTERS 200000 25 50000 50000 50000EQUIPMENTS 1000000 15 150000 150000 150000

GOODS AUTO 250000 20 50000 50000 50000TOTAL 1700000 72 280000 280000 280000

8/7/2019 ed project 123

42/50

BALANCE SH EET FOR T H E Y EA R

8/7/2019 ed project 123

43/50

Chapter 5:Production and operation

8/7/2019 ed project 123

44/50

Production and Operations:

Floor Area : 2250 square feet.

We will be hiring two floors of a building at Electronic city.. The first floor being 1500 sq ft.

will be divided into four parts. The major space will be occupied by the go down where the

raw materials and finished products will be stored. On the entrance of the office will have a

reception desk where customers and calls will be attended. Both the directors will have two

personal cabins in the same floor. The General Manager will have a desk in the go down. A

floor above with 750 sq. ft. is the place where the components will be assembled to

manufacture the products.

Location analysis :

The office cum go down is situated at No 118, 3 rd main, 4 th cross, electronic city, Bangalore.

The reason we chose Electronic city as the location for our corporate office is because

Bhanshan Consumer Durables, H.S.R Layout, is close to Electronic city.

Machinery used :

Electronic tools and equipments.

8/7/2019 ed project 123

45/50

Ist Floor

IInd FLOOR

8/7/2019 ed project 123

46/50

Chapter 6: Human resource

8/7/2019 ed project 123

47/50

Organizational Chart:

1. Two Directors : MD and ChairmanAnubhav Agarwal and Utkarsh Agrawal.

2.

One General Manager

3.

Two Receptionists

4.

Fourteen Electronic Engineer

Miscellaneous Staff

5.

One Driver

6.

One Security guard

7.

Four Assistants.

Total head count : 25

DIRECTORS1A NUBHAV A GA RWAL

2. UTKA RSH A GRA WAL

GENERAL

M A NA GER

2 RECEPTIONISTS 14 ENGINEERS

8/7/2019 ed project 123

48/50

Training procedure and implementation:

The engineers involved in assembling our various products will be trained by Mr.Sureshwho

has an experience of 18 years in the electronic and electrical field.

Management Structure:

Sales will be handled by Anubhav .

Finance and Strategic management will be taken care by Utkarsh Agrawal.

The General Manager will be in charge of the various operations of the company like

purchases, production, storage and distribution.

Receptionist 1 will attend the calls and customers. Receptionist 2 will be in charge of

the inventory and the receipts and issues of raw materials and finished products.

The engineers will be engaged in the assembling of the components to manufacture

the products.

Salary Breakup:

Sl.No. Position Head Count Salary per Head Monthly Salary

1 Directors 2 24000 48000

2 General Manager 1 18000 18000

3 Electronic Engineers 14 12500 175000

4 Office Receptionist 2 6000 12000

8/7/2019 ed project 123

49/50

5 Driver 1 5000 5000

6 Security Guard 1 4500 4500

7 Assistants 4 4000 16000

TOTAL 25 74000 278500

Working Hours :

10 am to 7 pm- Monday to Friday

10 am to 4 pm- Saturday and Sunday

1pm to 2 pm- Lunch hour

Leave Policy

Any employee of the company will have to give a prior notice of two days before leave to the

General Manager. The General Manager will pass it further to the Directors. The leave will

be sanctioned only if it approved and signed by any one of the Directors.

Recruitment Sources:

Advertisements will be published in the leading newspaper Times of India and in two

regional kannada newspapers. Advertisements will cost us around Rs 35000.

8/7/2019 ed project 123

50/50

Bibliography:

y

http://www.google.co.in/images

y

books.google.co.in/books

y

en.wikipedia.org/wiki/Durable_good

y

www.wisegeek.com

y

www.ibef.org

y

www.investorglossary.com

Conclusion:

TE RI M AA K A B HOSHR A M AA RU