small business modeling project

7/24/2019 small business modeling Project

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Executive Summary

We are starting a business of manufacturing CHOCO CHEW - chewable candy. Name of

the company is !". Our target mar#et is $ural %ndia. &he customers to whom our

products will be supplied are the shops near the temples' go(ernment schools in (illages and

the places where large gatherings occur. &he location of our manufacturing plant would be

)undli' Haryana.

&he core competencies on which our company would be competing are taste and *uality of

our candy. Our company would be a partnership firm comprising of a CEO' one +inance

Officer' one Chief ,ar#eting Officer' one Operations sound person' one Human $esources

Eecuti(e and one usiness /e(elopment ,anager.


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General Company Description

Our company will be in the confectionary business. Our company will be in(ol(ed in

manufacturing of candies.

Vision

Our (ision is to be the leading manufacturer of candies all o(er %ndia.

Mission

We see# to produce high *uality products at competiti(e price using modern technology to

pro(ide high satisfaction to the consumers.

Objectives

&o manufacture and pro(ide the customers with a *uality product to the best interest

of the customers. &o create 0rice competiti(e 0roducts as part of the effect to increase the world access

to high *uality chocolates.

&o ensure a hygiene 1 clean wor#ing en(ironment as to continue to produce 2afe 1

&asty 0roducts

&o stri(e to ,eet 1 Eceed Customer3s Epectations so as to ensure a sustainable

business relationship.

Target Market

,iddle class

4ower middle class

Children in the age group of 5-65


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Basis !resumption"

&he 0ro7ect 0rofile has been prepared on the basis of 2ingle 2hift of 8-hrs a day and

9:-wor#ing days in a month at ;:< efficiency.

%t is presumed that %st year' the capacity utili=ation will be ;>< followed by 8:< in

the net year and 6>>< in the subse*uent year.

/epreciation on machinery 1 e*uipments has been ta#en ? 6>< minimum.

/epreciation on office furniture has been ta#en ? 9> < per annum.

&he rates *uoted in respect of salaries and wages for s#illed wor#er and others are on

the basis of minimum rates in the 2tate of Haryana.

&he margin money re*uired is minimum @A>< of the total capital in(estmentB.

&he rental (alue for the accommodation of office' wor#shop and other co(ered area

has been ta#en ? $s. A>- per 2*. meter. &he rate *uoted in respect of machinery' e*uipment and raw materials are those

pre(ailing at the time of preparation of the 0ro7ect 0rofile and are li#ely to (ary from

place to place and suppliers to suppliers. When a tailor made pro7ect profile is

prepared' necessary changes are to be made.

&he pay bac# period may be :-years after the initial gestation period.

&he gestation period in implementation of the pro7ect may be to the tune of 5 to D

months' which includes ma#ing all arrangements' completion of all formalities'

mar#et sur(eys and tie-ups etc. Once all the abo(e arrangements are made and

*ualitystandards achie(ed the 6>>< pro7ect capacity may be achie(ed at the end of

three years.

Tec#nical $spect

,anufacturing 0rocess &he 0rocess in(ol(e the coo#ing of 2ugar in the stainless

steel steam 7ac#eted cooing pan then cooling of syrup on cooling table after that add

all ingredient in the (acuum batch coo#er including color and fla(or etc. then miture

sub7ect to batch roller then three stage rope si=er then sub7ect to sweet forming

machine then sub7ect to three way cooling con(eyor then in the end candy wrapping

machine to pac# the 2ugar candy.

Fuality Control 1 2tandards &he rele(ant ureau of %ndian 2tandards 2pecification

for &offee is %2655;6DD6. &he specification for hard boiled sugar confectionery is

%2 6>>8 6D86. &he details of specification can be obtained from the ureau of %ndian2tandards' ,ana# ha(an' D' ahadur 2hah "afar ,arg ' New /elhi-66> >>9.


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!ollution Control

&his industry may in(ol(e pollution to some etent for which 2tate 0ollution Control

oard has to be approached for NOC ,inimum height of shed will be maintained with ehaust fans for remo(ing

decongestion' proper (entilation' remo(al of co#es fumes etc

%inancial $spects"

&$'%ixe( Capital"

)* +an( an( Buil(ing &o,n' "

4and and uilding @rentedB

On $ent ? $s.:>-2*. meter

Co(ered Grea 6>> 2*. meter :'>>>-

-* Mac#inery an( e.uipment"

2.NO. /escription H0)W %nd%mp Fty. alue @$sB

!ro(uction /nit 0ame o1 mac#ine ,it# speci1ication

6. acuum atch Coo#er Cap. 6>>> )g.shift One 6'8:'>>>

6'8:'>>>-@22 steam 7e#eted coo#ing' 6 H0B

9. 2ugar atch )neader cap.:> )g.' with side One 6'8>'>>>

0lates

A. Candy +orming 69 0last-O-0last machine with

atch former' three stage rope si=er' three-way

Con(eyor' motor' panel 1other die One A' 6>'>>>

I. /ie 69 0O0 ,achine with rass 0unches +i(e A9':>>

:. Candy Wrapping machine double twist style

2peed A>> 0cs.,in &wo 5'I>'>>>

5. Heater cum lower for Candy Wrapping One 65'>>>

;. /ie Carrier One 6:'>>>

8. Wor#ing table with 2.2.Gluminum top &wo :'>>>

D. Weighing alance platform type One :'>>>

6>. Gluminum (essels' ,ats' cups' ,ugs'

4adle' spoons' glo(es etc. and misc.e*uipt. -66. Electrification 1 %nstallation Charges ? 6>< 6'>>'>>>


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69. Cost of Office E*uipment and other :>'>>>

0roduction e*uipment etc

Total Cost o1 Mac#inery E.uipments )23453666

7* !re8Operative Expenses" A>'>>>

Total %ixe( Capital &-97' )23:53266

(B) Working Capital (Per month)

(1 ) Staff and Labor (per month):

S*0O* Description 0o* Salary Total Value &;s*'

&a' $(ministrative Supervisory

6. Chief Eecuti(e Officer One :>'>>> :>'>>>

9. Chief ,ar#eting ,anager One A>'>>> A>'>>>

A. +inance Officer One A>'>>> A>'>>>

I. usiness /e(elopment ,anager One A>'>>> A>'>>>

:. Human $esources ,anager One A>'>>> A>'>>>

5. Operations ,anager One A>'>>> A>'>>>

:. 0eon Watchman One D'>>> D'>>>

5. 2weeper One 8'>>> 8'>>>

&b' Tec#nical Skille( unskille(

6. 2#illed Wor#ers &wo 65'>>> A9'>>>

9. 2emi J 2#illed Wor#ers &wo 6>'>>> 9>'>>>

A. Helper 0ac#ers +our :'>>> 9>'>>>

Total -35 4737266

Total 737-3726

&-' ;a, Material &per mont#'"

S*0O* Description ,it# speci1ication ?ty* ;ate Value &;s*'


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a. 2ugar 9: &on 98- per #g ;'>>'>>>

b. Other ,aterials i.e. chemicals.

Herb etracts' fla(ors' colors etc. 9>>> )g 9>'>>>

c. 0ac#aging ,aterial :>'>>>

:3:63666

&7' /tilities &per mont#'"

Electricity 9>'>>>

Water 6'>>>

&4' Ot#er Expen(iture &per mont#'

a. 0ostage 1 2tationary 6'>>>

b. Gd(ertisement :'>>>

c. &elephone 6'>>>

d. $epair 1 ,aintenance 6'>>>

e. &ransportation 6'>>>

f. Consumable 6'>>>

g. 2ales Epenses :'>>>

h. %nsurance 6'>>>

i. ,isc. Epenses 9'>>>

Total" )53666

&otal $ecurring Ependiture @per monthB

a. 2alary 1 Wages A'A9'A:>b. $aw ,aterials ;';>'>>>

c. Ktilities 96'>>>

d. Other Contingent Epenses 68'>>>

Total" ))34)3726

Working Capital for Three Months 743-43626

Total Capital @nvestment"

+ied Capital 6:';8':>>


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Wor#ing Capital for three months AI'9I'>:>

Total" 2636-3226

M$CA@0E; /T@+@$T@O0"

%t is epected that during first year machine utili=ation will be ;>< and during second year

8:< and 6>>< in subse*uent years.

%inancial $nalysis

Cost o1 !ro(uction &per annum'

a. &otal $ecurring Cost per year 6'>I'AD'I>>

b. /epreciation on ,achinery and E*uipment ? 6> < 6'I>'>>>

c. /epreciation on Office E*uipment 1 +urniture ? 9>< 6>'>>>

d. %nterest on &otal Capital %n(estment ? 69< :'>9'5>9

Total )3)63>> ::- 6A';:'>>>

4ess sales epenses ?9:< A'IA';:>

2ay A'II'>>>

Net 2ales $eali=ation @turn o(erB per month )637)3666

2o Net 2ales $eali=ation @turn O(erB per year )3-73:-3666

Net 0rofit per annum before %ncome &a )-3563666

@2ales J Cost of 0roductionB


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B;E$ EVE0 $0$+S@S

%ixe( Cost &per annum'

a. &otal /epreciation @on mc 1 e*uipment' dies' tools' furnitureB 6':>'>>>

b. $ent 5>'>>>c. %nterest on borrowing @&otal %n(estmentB :'>9'>>>

d. %nsurance 5'>>>

e. I>< of salary 9'D9':>>

f. I>< of utilities 6'>8'>>>

g. I>< of other contingent epenses 85'I>>

@Ecluding rent 1 insuranceB

Total" )-36232-

small business modeling project

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