puro water plant

34
THE BUSINESS SCHOOL UNIVERSITY OF JAMMU REPORT ON - “PURO WATER PLANT ” SUBMITTED BY: RADHIKA GUPTA (32- MBA-14)

Upload: radhika-gupta

Post on 20-Jan-2017

135 views

Category:

Business


1 download

TRANSCRIPT

Page 1: Puro water plant

THE BUSINESS SCHOOL

UNIVERSITY OF JAMMU

REPORT ON - “PURO WATER PLANT ”

SUBMITTED BY: RADHIKA GUPTA (32- MBA-14)

INTRODUCTION TO THE COMPANY

The venture is a packaged drinking water plant situated in food park, Bari Brahmna,Jammu.

the plant would basically take into consideration three process

Page 2: Puro water plant

1. PURIFICATION OF WATER BY REVERSE OSMOSIS

2.JAR(20Ltr) FILLING AND SEALING

3.GLASS FILLING AND SEALING

the final products of our plant would be further supplied in the market

Company objectives, vision and mission

Vision:-To be the most trusted packaged drinking water distributor of nation

Mission:-To be a company which takes care of both its internal and external customers

and become the largest drinking water distributor of Jammu.

PLANT SETUP

Over a projected timeframe of 12-months (2016-17), a 3-phase process will be required to

fully plan out, construct, and launch this venture. Whereas the project risk is highest during

phase I, the amount of required expenditure only becomes large by phase III. These three

phases are described below.

Phase I; Site Engineering (months 1 to 3)

• Identify best plant site from several candidates.

• Develop full engineering specs for the plant�

Phase II; Infrastructure Acquisition (months 4 to 6)

• Place a deposit on the target land site.

• Arrange for building construction / renovation.

• Order all production equipment.

• Recruit senior production personnel

Phase III; Construction & Plant Set-up (months 7 to 12)

• Construction / renovation of the plant

• Production equipment received and assembled.

Page 3: Puro water plant

• Delivery equipment received.

• Marketing materials prepared and promotion begins.

• All personnel are recruited.

 

KEY MANAGEMENT POSITIONS

There will be five key positions that will be taken up by our people. The five positions are

given below

• CHIEF EXECUTIVE OFFICER (CEO)

• CHIEF FINANACIAL OFFICER (CFO)

• MARKETING AND DISTRIBUTION MANAGER

• PRODUCTION & OPERATIONS MANAGER

• HR AND LEGAL ASPECTS

Major Processes

The major processes that are being undertaken are as follows :-

Page 4: Puro water plant

FIRST SECTION:-PURIFICATION

ABP MACHINES PVT LTD

Abp Machine Private Limited

Preyank Patel (General Manager)

Survey No. 820, Near Chocolate Factory, Behind Flow Chem Industries, Sola Santej Road,

Page 5: Puro water plant

Rakanpur 

Ahmedabad - 382721, Gujarat, India

Call Us:

  08586966630

Mobile:

  +(91)-9909971978

  +(91)-9898493217

RO PURIFICATION SYSTEM 4.5 LAKH

Specifications of Industrial Reverse Osmosis System

Capacity: 500 ltrs/hour to 20000 lts/hour

Material Used: Stainless steel 316

Jar washing and filling machine (7.5 lakh)

Four process are their in total in this, these are as follows

1.Jar insertion

2.Jar washing

3.Jar filling

4.Jar capping

There are 2-3 people required for this

the bottles and Caps will purchased from VMI Plastics Delhi

Page 6: Puro water plant

The lifetime of the bottles is 15 refills per bottle

Features :

Machines available in different capacities including options of 60-80 Jars / min, 120 Jars

/min, 240 Jars/min, 500 Jars /min

Machines coming with neck holding provision

Machines coming with options of No Bottle, No Rinsing, No Filling and No Capping

Machines allowing for four stage rinsing including one time Chemical wash, two tomes Hot

wash and one time final water wash

Machines allowing for single stage filling

Machines coming with non contact sensors to provide for precision process support

Machine coming with separate cap hopper with capacity of 50 caps

All contact parts of SS316L rest SS304 so as to ensure complete hygiene in involved

procedures

Provides for high pressure inside wash so as to maintain hygiene conditions inside

SS finish based machine structure that provides for durable usage

Also feature hot water pump which comes with high pressure capacities

Comes with water collection and hot water tank support

Auto temperature controller provision

Backed by highly functional heater support

Automatic Glass Filling and Sealing Machine(3.5 lakh)

Page 7: Puro water plant

The boxes for packing the glasses will be purchased from Shalimar Polymers, Bearpur

Industrial Estate, Jammu

The tape for sealing will be purchased from Kathua

800 boxes per day(8hrs of working)

Sheets for sealing the glass will be purchased fro Jalandhar

Meaning of Plant Layout:

After deciding above the proper site for locating an industrial unit, next important point to be

considered by an entrepreneur is to decide about the appropriate layout for the plant. Plant

layout is primarily concerned with the internal set up of an enterprise in a proper manner.

Page 8: Puro water plant

It is concerned with the orderly and proper arrangement and use of available resources viz.,

men, money, machines, materials and methods of production inside the factory. A well

designed plant layout is concerned with maximum and effective utilisation of available

resources at minimum operating costs.

The concept of plant layout is not static but dynamic one. It is on account of continuous

manufacturing and technological improvements taking place necessitating quick and

immediate changes in production processes and designs. A new layout may be necessary

because of technological changes in the products as well as simple change in processes,

machines, methods and materials”.

A new layout also becomes necessary when the existing layout becomes ineffective and poor

or is not conducive to the changed circumstances. There are certain indications which raise

alarm for immediate changes in the existing layout of plant.

These indications may be in the form of excessive manufacturing time, improper storage,

lack of control over materials and employees, poor customer service, excessive work in

progress and work stoppages etc

Objectives of Plant layout:

A properly planned plant layout aims at achieving the following objectives:

1. To achieve economies in handling of raw materials, work in- progress and finished goods.

2. To reduce the quantum of work-in-progress.

3. To have most effective and optimum utilisation of available floor space.

4. To minimise bottlenecks and obstacles in various production processes thereby avoiding

the accumulation of work at important points.

5. To introduce system of production control.

6. To ensure means of safety and provision of amenities to the workers.

Page 9: Puro water plant

7. To provide better quality products at lesser costs to the consumers.

8. To ensure loyalty of workers and improving their morale.

9. To minimise the possibility of accidents.

10. To provide for adequate storage and packing facilities.

11. To workout possibilities of future expansion of the plant.

12. To provide such a layout which permits meeting of competitive costs?

Components of Layout

1.Filling Glasses: In this section water is filled up in the plastic glasses with the drinking

water, with the quantity of 250ml.

2.Water Treatment Plant: Water treatment is any process that makes water more acceptable

for a specific end-use, which may be drinking, industry, irrigation, river flow maintenance,

Layout for the plant

1 Filling Glasses2 Water Treatment Plant3 Jar Washing & Filling4 Water Storage Tank5 D.G Sets6 Office7 Storage8 Micro Lab9 Chemical Lab10 Change Room

7 5

31

2

10

10

8

9

64

3

Page 10: Puro water plant

water recreation or many other uses. Water treatment should remove existing water

contaminants or so reduce their concentration that their water becomes fit for its desired end-

use, which may be safely returning used water to the environment.

3.Jar Washing & Filling: Jar washing machines cleanses the dirt or any other particles and

then after this process the jar is filled with the water.

4.Water Storage Tank: A water storage tank is a container for storing liquid to provide

storage of water for processing the drinking water. Water tank parameters include the general

design of the tank, and choice of construction materials, linings. Various materials are used

for making a water tank: plastics (polyethylene, polypropylene), fiberglass, concrete, stone,

steel (welded or bolted, carbon, or stainless).

5.D.G Sets: A diesel generator is the combination of a diesel engine with an electric generator

(often an alternator) to generate electrical energy. This is a specific case of engine-generator.

A diesel compression-ignition engine often is designed to run on fuel oil, but some types are

adapted for other liquid fuels or natural gas.

Diesel generating sets are used in places without connection to a power grid, or as emergency

power-supply if the grid fails, as well as for more complex applications such as peak-lopping,

grid support and export to the power grid.

Sizing of diesel generators is critical to avoid low-load or a shortage of power and is

complicated by modern electronics, specifically non-linear loads. In size ranges around 50

MW and above, an open cycle gas turbine is more efficient at full load than an array of diesel

engines, and far more compact, with comparable capital costs; but for regular part-loading,

even at these power levels, diesel arrays are sometimes preferred to open cycle gas turbines,

due to their superior efficiencies.

6. Office: A place from where manager can sit can keep watch over the progress going on and

supervise the process.

7.Storage: A place where all the raw material required for the process is used. the raw

material may include the plastic glasses to jars required for filling and any tools required for

the machines. Any lubricant for machines etc.

Page 11: Puro water plant

8. Micro Lab: A microlab was a hand-held portable laboratory for analyzing substances.

When one needed a quick examination of a material and could not wait for a full analysis

from another location, a microlab worked well enough to answer most questions, and in some

cases, its analysis was just as good as a full examination.

BIS(ISI) has decided different standards for drinking water as per resourcing of raw water,

but always stressing on that each component of water must be well within permissible limit.

That permissible limit can be attained by only RO procedure because it is the only process

which deals with every salts of water.

9. Chemical lab:It involves hours at the water treatment plants and tested for various

chemical parameters e.g. pH, Alkalinity, Turbidity, UV Absorbance, Residual Chlorine,

Hardness, etc.

These results are used to optimise plant operations and to monitor the quality of the water

throughout the treatment process.

The methods used feature fully automated electrode calibration as well as record keeping of

calibration data.

10. Changing Room: This room involves the worker who want to change the clothing for

work and is also used for sanitation purpose.

Quality Control

When developing a quality control program, bottlers must evaluate many facets of their

operation including sources, transportation, supplies, ingredients, equipment, maintenance,

product and distribution. The three major areas to focus on for in-house quality control

testing are process, packaging and product.

In-house testing for quality control purposes is a critical part of a bottled water business. The

data accumulated is an invaluable tool for detecting problems in the process, heading off

potential problems and troubleshooting product quality complaints. When a customer

Page 12: Puro water plant

complaint comes in, this data can be the first line of defense. Accurate, organized and

detailed records of daily testing and process quality checks give the bottler a path to follow in

either ruling out a problem in the process, or pinpointing where a product quality problem

may have originated. Then any necessary corrective action procedures can be developed and

implemented.

Process

Determining what points in the process to test should coincide with the bottlers’ Hazard

Analysis and Critical Control Points (HACCP) plans. HACCP is a prevention-based program

that identifies and assesses hazards associated with the process, determines the critical control

points in the process for the identified hazards, and establishes a monitoring system for these

points. There are many points in the bottling process that could be monitored as a control

point or a point in the process where the product quality could be at risk. A critical control

point is slightly different in that it is the last point in the process where a particular problem

could be avoided. For example, transportation of source water to the plant has potential risk

for microbiological contamination, but it would not be a critical control point for bacteria

testing if the water is ozonated or otherwise disinfected at a later point in the process. The last

point of disinfection would be the critical control point or most critical area of concern for

monitoring in order to prevent the possibility of microbiological contamination in the final

product water.

Frequency of testing performed to ensure that all of the equipment in the process is operating

effectively should be determined based on manufacturer recommendations. Equipment and

process monitoring is case-specific a different plants have their own specific configurations

and products. Generally, checks should be performed at start-up each day or at the beginning

of each shift and then at regular intervals throughout each production run on all equipment

used in the process such as those discussed below.

Filtration/demineralization processes—sand, carbon or particle filtration, distillation, reverse

osmosis, deionization (depending on the process and water type) call for tests on:

Delta P (measures drop in water pressure);

Conductivity;

Page 13: Puro water plant

pH;

Chlorine removal;

Taste;

Turbidity;

Chloride;

Resistivity; and

THMs.

Bottle washer monitoring should include testing of:

Cleanser concentration;

Cleanser carryover in bottles;

Pressure;

Temperature;

Rinse and wash volume; and

Visual inspection of jets (direction and flow).

Lot numbers of raw materials/ingredients/packaging materials should be documented upon

receipt and at time of use for traceability.

Packaging

Packaging equipment, such as cap and label applicators and date coder operation efficiency,

should be inspected regularly for correct application, legibility and accuracy.

Contents of the filled product bottles should be verified regularly based on volume or weight.

Container and closure samples should be pulled from the production line (just before filling)

and tested quarterly to be sure they are free of bacterial contamination. Four samples of each

type of bottle and each type of cap used should be tested quarterly.

Product

When referring to product quality monitoring, beginning, middle and end of a production run

is a common reference. This refers to bracketing or dividing up the production run. These

brackets may be defined by certain events such as performing microbiological testing or by

label changes within a production period. Quality monitoring is then performed and

Page 14: Puro water plant

documented within these bracketed periods. This can be useful in breaking up large

production runs to make it easier to trace a potential problem. In case of a recall, the scope

could be limited to that specific time period of the production run (if the times are included in

the date codes used on the bottles).

Product quality monitoring should be set up on a regular schedule throughout the production

run, or bracketed period, dependent upon the parameter and the type of water being produced.

The following tests are typically recommended for in-house product water testing (some are

specific to certain types of water, such as fluoride). Testing frequency for these parameters is

usually at production start-up and at regular intervals throughout the specified production

period.

Conductivity. Monitor conductivity frequently to confirm product consistency.

Taste. Perform periodic testing to determine that the taste remains pleasant.

pH. Natural waters should remain within a pH range of 6.5–8.5 (purified/ distilled/RO usually

fall into a lower pH range of 5–7).

Fluoride. Fluoridated product water is generally tested at start-up and a couple of times per

shift to ensure consistent levels. If the fluoride is naturally occurring, levels should be around

2 mg/L (1.3 mg/L if it is being added to the product water).

Ozone residual. Recommended monitoring is every 1/2 hour. A spike in ozone levels can lead

to product quality problems depending on the chemical makeup of the water being ozonated.

Ozone residual should fall between 0.1 and 0.4 ppm. The appropriate level for a particular

water should be determined based on the water chemistry and regular microbiological testing.

Various adjustments coinciding with testing of ozone, micro and bromate may be required to

determine the appropriate levels.

Microbiological. Weekly coliform testing should be done on source and product waters by an

approved laboratory. Some bottlers have their in-house labs approved by the state for

coliform testing, but most send it to a certified laboratory. In addition to satisfying regulatory

requirements, these independent results offer a check and balance against the in-house test

results. Bottlers using a municipal source don’t have to do the weekly testing on the source as

it is already tested by the municipality. The finished product water should be tested in-house

Page 15: Puro water plant

by the bottler daily. Testing may also be done more frequently in order to bracket production

runs.

Detailed records of the quality monitoring program tests should be maintained on-site for at

least five years.

These recommendations are not all encompassing for every type of facility and/or type of

water produced. Bottlers should consult their equipment suppliers, regulators and/or a

consultant who is experienced in the bottled water industry about the in-house quality

monitoring program that is appropriate for their facility.

1. SSI REGISTRATION :-

The most basic Document needed for any small scale industry in India. Once you have an SSI

registration , you can avail many government facilities. Usually this is available at the District

Industries Centre , just check. It is not very difficult to get this.

2. BIS Registration [ISI Mark Certificate]

This is mandatory for Packaged Drinking Water. The Standard is – IS 14543.

3. POLLUCTION CONTROL CERTIFACATE. :-

This is available from the Local Pollution Board Office. Simple Procedure.

4. ALL REQUIRED TEST REPORTS OF RAW AND PURE WATER.

Can be had from a local Test Laboratory , just locate a Water Testing Lab ; Check at the

Local Drinking Water Testing Laboratory. Just Go with your sample Water of 1 Ltr. Take

sample from 2-3 locations & get it tested for Packaged Drinking Water.

5. PEST CONTROL CERTIFICATE.

Approach a local pest Control guy, he will provide this.

6. CHEMIST-DEGREE AND MEDICAL CERTIFICATE.

7. MICROBIOLOGIST – DEGREE AND MEDICAL CERTIFICATE.

Page 16: Puro water plant

8. MEDICAL CERTIFICATE FOR WORKERS –4.

9. REGISTRATION OF TRADEMARK.

This will be very important. Approach some of the trademark consultants in your are. It is a

lengthy procedure, start early.

10. DOCUMENT REGARDING OWNERSHIP/LEASE OF LAND.

11. MEMORANDUM OF ASSOCIATION OF COMPANIES/PARTNERSHIP DEED

IF APPLICABLE.

12. Electrical load sanction

13. Sanction layout plan

MARKETING PLAN

STRATEGIES FOR SUCCESS

The mission of PWP is to become Jammu premier provider of purified, safe, and

affordable drinking water. PWP is dedicated to building long-term relationships with

customers through quality products and customer support. The best way to achieve this, and

the basis of the company’s initial marketing focus, therefore, is to promote the benefits for

the home and office of buying PWP’s products. In large measure, the use of “Puro” (the

Portuguese word for “pure”) within the brand name will help establish the necessary imagery

of a product that is both clean and valuable.

Secondarily, promotional messaging should also play up the fact that PWP is an

Jammu-based company. Other bottled water product may appear from time-to-time, but

why not take advantage of nationalistic sentiment? A small Jammu flag logo on the

bottle would help achieve this.

Page 17: Puro water plant

Finally, the company will adopt creative and aggressive tactics to exclusively

position its product into key target markets. For instance, by offering low pricing and / or

promotional supports to a particular high profile retailer will ensure that only Puro Water

appears on the shelf rather than some other brands. Often, taking less revenue (or

incurring a higher cost) when dealing with a certain customer will incite that customer to

agree to some sort of preferential agreement. When that customer just happens to be

important (in terms of his location, large market share, reputation, etc.), then the

revenue sacrifice or extra cost incurred may be very worthwhile in terms of the big

picture.

OurStrategicDirectionStatement,outlines ourlong-term strategy. The focus of our strategic

goals over the next five years is to:

keep bills at current levels of affordability

increase the resilience and reliability of our water and wastewater services

secure and conserve water resources

anticipate and invest for growth in our region

improve the environment

mitigate and adapt to the impacts of climate change

improve our efficiency and flexibility.

We are confident that we will make substantial progress toward meeting these goals.

Primary keys to success are:

1. Good quality control in the factory. Customers for high purity water business have a

very low tolerance threshold for flaws.

2. Fast response. In the case of most of ourcustomers, the cost of the water is not a major

element in their over-all costs, but a very expensive shut-down could result due to poor

or slow servicing.

Page 18: Puro water plant

3. High-profile allegiances. Key to over-all company success is connected closely with

success in achieving the goal of developing a dealership network of service-oriented

water companies.

TARGET MARKETS

A number of prospective customer groups will comprise PWP’s principal target

markets. The type of marketing required to effectively connect to the various groups will

vary, and these differences will be noted.

• Individuals; this group will be comprised of the population at large, and can only be

effectively approached through mass media marketing.

• Retailers; a very important target market in so far as this represents the best way to sell

product to most members of the general population. Potentially, this target market group

could represent the largest sales volumes. Establishing agreements with retailers will require

direct sales approaches, coupled to the offering of sales commissions.

• Hospitals; this sector represents an excellent public relations opportunity, since the

placement of product into hospitals will prove the assertion that the Puro Water brand

represents quality and safety. Establishing agreements with hospitals will require direct sales

approaches, coupled to the offering of pricing discounts.

• Large Businesses, Commercial Complexes, Government Offices; this will quickly become

the largest target market group in terms of sales volumes. It is important to highlight the fact

that these are establishments with money, they have a lot of workers, and they have a vested

interest in protecting / preserving the health of their workforces. Establishing supply

agreements with these customers will require direct sales approaches to key decision makers.

PROMOTIONAL STRATEGIES

As a general statement, the principal objective behind PWP’s ongoing

promotional activities will be to introduce and reinforce the Puro Water Plant brand name to

the Jammu population. Promotional activity builds familiarity, reduces inhibitions, and

Page 19: Puro water plant

often discourages the entry into the marketplace of new, would-be competitors. Some of

the promotional activity / tactics to be employed is rather straightforward, including:

• Large signage along major roadways (e.g. billboards).

• Radio and newspaper ads.

• Create a “buzz” in the local press during the lead-up to the establishment of the plant, and

especially at the point of its “Grand Opening”. - JAMMU LINK'S

• Maintaining a sizable marketing & sales budget over the long-term. Promotion activity is an

ongoing process, whose results may not show in the very immediate term. After all, PWP not

only wishes to induce Jammu to try the product in the near-term, the intent is for these people

to become longstanding, repeat customers on a continuous basis.

• Offer free trial offers, such as providing a water dispenser and initial supply of purified

water at no charge. This tactic is best suited for large commercial buildings, government

offices, or other potentially large volume buyers. Such free trials can entice certain

prospective consumers to sign up for long-term supply deals.

• Offer a discount on jars and / or jars for those customers who agree to commit to longer-

term, minimum volume, supply contracts.

• Pay competitive commissions to retailers, wholesalers, and brokers so that they remain

motivated to sell PWP product lines.

PRICING STRATEGY

PWP will maintain pricing on its products that will always tend to be at, or below

the prices charged by other bottlers serving the Jammu marketplace. Other elements

of the company’s pricing strategy will include:

Maintain pricing consistency over the year so as to tell customers that PWP is a

stable entity that is fully committed to its products.

Offer pricing discounts for those customers willing to commit to taking delivery of

large volumes on a continuing, long-term basis. This will translate into a major cost

savings for large volume customers, and will induce them to stay loyal.

Page 20: Puro water plant

By maintaining an ultra-competitive pricing regimen, potential newcomers to the

Jammu marketplace will be dissuaded from selling their bottled water products (if

they are foreign-based bottlers, they will likely pay more attention to some other

nation where the pricing levels and profit potential is higher).

FINANCIAL ESTIMATES AND PROJECTIONS

COST 0F PROJECT:

Cost of project represents total of all items of outlay associated with a project which

are supported by long term funds . It is the sum of outlays on the following :

Land and site development

Buildings and civil works

Plant and machinery

Miscellaneous fixed assets

Margin money for working capital

Technical know- how and engineering fees

Total outlays associated with the project:

1. Land And Site Development –

• Lease rate – 2,00,000 / kanal

• Rent for Industrial Area – Rs 2000 / year

• Boundary wall and civil works on gate etc. - 3,00,000

Total Cost - 5,02,000 /annum

2. Plant and machinery

S.no Particulars Amount(Rs)

1 Aluminium treatment tanks(3) 6,00,000

2 Reverse osmosis plant 2000 litre 9,00,000

3 Chlorination tanks made of S.steel(2) 4,60,000

4 Sand filter(1) 50,000

5 Activated carbon filter 60,000

Page 21: Puro water plant

6 Micron filters(3) 80,000

7 Ultraviolet disinfectant system 72,000

8 Electronic doser for aluminium tank 68,000

9 Electronic doser for chlorine tank 60,000

10 Ozone generator 3,15,000

11 Raw and Purified water collection tank 7,00,000

12 Automatic rinsing filling and capping machine 7,50,000

13 Shrink wrapping machine for bottles 85,000

14 Misc. Tools, laboratory testing &Q.C 3,00,000

TOTAL AMOUNT 45,00,000

3. OTHER FIXED ASSETS :

S.NO PARTICULARS AMOUNT

1 Cost of furniture, furnishings and official

accessories

88,000

2 Cost of deep bore tube well for water reservoir 1,30,000

3 Security deposit to electricity deppt. 1,00,000

4 Preliminary and start up expenses 1,50,000

5 Delivery van and contingency 5,00,000

TOTAL AMOUNT 9,68,000

4. WORKING CAPITAL

S.NO PARTICULARS AMOUNT

Raw material and packagimg material(including

3.75 lakh bottles with caps)

15,00,000

Salary and wages 77,000

utilities 45,000

Recurring expenses 11,000

TOTAL AMOUNT 16,33,000

Margin money for working capital for 6 months 97,98,000

Page 22: Puro water plant

COST OF PROJECT:

S.NO PARTICULARS AMOUNT

1 Total fixed cost 59,70,000

2 Margin money for working capital 97,98,000

Total cost of project 1,57,68,000

(1.57 crore

approx.)

FINANCIAL ANALYSIS

COST OF PRODUCTION:

S.NO PARTICULARS AMOUNT

1 Working capital for one year 1,95,96,000

2 Depreciation on plant and machinery ( @10%on

45 lakhs)

4,50,000

3 Interest on total capital investment 5,78,620

Total cost of production 2,06,24,620

TURNOVER

S.no particulars amount

By sale of 45 lakh bottles ( 20 lit bottles and 250

ml glasses)

2,81,25,000

PROFIT (per annum):

Turnover – Cost of production

2,81,25,000 – 2,06,24,620

= 75,00,380 /annum

Page 23: Puro water plant

Break Even Point :

= Fixed Cost * 100

Fixed cost + annual profit

= 41,89,440 * 100

41,89,440 +75,00,380

= 35.8 %

PROJECTED CASH FLOW STATEMENT:

Sources of funds

Equity share capital 50,000

Capital investment subsidy ( plant& machinery @30%) 7,59,600

Working capital loan @14% 97,98,000

Profit before tax with int. Added back 80,79,000

Working capital int. Subsidy @3% 82,303

Term loan @14% 25,00,000

Total (A) 2,12,18,903

DISPOSITION OF FUNDS

Lease for land 2,00,000

Total interest rate 30,93,440

Industrial area rent 2,000

purchase of plant and machinery 45,00,000

Working capital 97,98,000

TOTAL (B) 1,75,93,440

NET SURPLUS 36,25,463

PROJECTED BALANCE SHEET

LIABILITIES Amount

Equity share capital 50,000

Term loan 25,00,000

Working capital loan 97,98,000

Depreciation on plant and machinery 4,50,000

Page 24: Puro water plant

Net profit after tax 74,37,366

TOTAL 2,02,35,366

ASSETS

Plant and machinery 45,00,000

cash 36,25,463

Margin money kept for Working capital 97,98,000

Govt. incentives 8,41,903

Land and site development 5,02,000

Other fixed assets 9,68,000

TOTAL 2,02,35,366

Industrial Incentives for the state of Jammu & Kashmir announced by Govt. Of India :

• Capital investment subsidy scheme @30 % of the investment of plant

machinery , subject to ceiling of Rs 3.00 Crore for manufacturing sector.

(7,59,600 subsidy on plant and machinery)

• Central interest subsidy scheme : An interest subsidy of 3% on the average of

daily working capital loan would be provided to all new industrial units for a

period of 5 years from the date of commencement.

  (Bottling of mineral water included under thrust industries according to J&K Industrial

policy)

Page 25: Puro water plant