Product Project Report On RASAM POWDER

PPR ON
ESPECIERO RASAM POWDER
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A
PRODUCT PROJECT REPORT ON
Prepared by
Name
: Reena John
Roll no
: 91
Seat no
: -
Class
: B.B.A sem-v
Academic year: 2014-15

College
Matushri Virbaima Mahila College of COMMERCE

MANAGEMENT AND I.T.
Guided by
Prof. Dharti Nathwani
Prof. Kalpesh Radiya
Submitted to
Saurashtra University
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DECLARATION
I undersigned REENA JOHN student of B.B.A SEM- V hereby declare that the
project report is my own work and has been carried out under the guidance and
supervision of prof. Dharti Nathwani and prof. Kalpesh Radiya of
MVM COLLEGE OF COMMERCE, MANAGEMENT AND I.T., RAJKOT
affiliated to Saurashtra University.
This work has not been previously submitted to any other university for any
other examination.
Date:
Signature
Place:
Reena John
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PREFACE
BBA is course in which practical aspect is an important as theoretical
aspect. The growth of economy is depends upon skilled managers and BBA
course fulfils this need the practical studies give an idea to the student about
problem they have to face in future of their managerial life.
The contribution of small scale industries is 40% in the economic growth rate
of the country. So, it is essential to understand management and working of
small scale industries as a student of management. Small scale business has
been included to create and development entrepreneur skill among the student.
It is highly essential as a student of management to understand management of
SSI in MBA The subject entrepreneurship and management of small business
are included to give student the practical knowledge of the student. Thus we can
get clear picture that how to manage small scale business and how to avoid
difficulties in the way. So, I am presenting Business plan on Especiero Rasam
Powder
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ACKNOWLEDGEMENT
To complete this project many persons have helped me. I am thankful to all who
have helped me to complete this report.
Very first, I thank to Saurashtra University to give me such an opportunity.
Secondly, I would like to thank my college MATUSHRI VIRBAIMA MAHILA
COLLEGE OF COMMERCE MANAGEMENT AND I.T. to give this opportunity
to appear such a wonderful project report on Rasam powder.
My most thank to director MRS. BINA .S .DAVE for giving me permission and
providing me each and every necessary information.
Heartily thanks to our PROF. DHARTI NATHWANI and PROF. KALPESH RADIYA to
guide us in proper way and in such a manner, that we have not felt any difficulty
during project.
Last but not least my god my parents and my friends without their motivation, I
could not able to prepare this project in well format way.
Date:
Signature
Place:
Reena John
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General index
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Particular
General aspects
Technical aspects
Market aspects
Financial aspects
Risk factors
Swot analysis
Future plans
Conclusions
References
Pg no.
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GENERAL ASPECTS
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General aspects
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Particular
Introduction to SSI
Introduction to PPR
Project at glance
Promoters background
Justification of location
Organization chart
Vision , mission of the company
Basis and presumption
Implementation schedule
Pg no.
Introduction to SSI
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Since the time of independence, the small-scale sector in India has been a
major contributor to countrys Gross Domestic Product (GDP). This traditional
sector in India is considered to have huge growth prospect with its wide range
of products. With 40 percent share in total industrial output and 35 percent share
in exports, the small-scale industrial sector in India is acting as Engine of
Growth in the new millennium.
Small sector units are those engaged in the manufacture, processing or
preservation of goods and whose investment in plant and machinery (original
cost) does not exceed Rs. 3 Crore. These would, inter alia, include units
engaged in mining or quarrying, servicing and repairing of machinery. In the
case of ancillary units, the investment in plant and machinery (original cost)
should also not exceed Rs. 1 Crore to be classified under small-scale industry.
Small businesses are normally privately owned corporations, partnerships, or
sole proprietorships. In addition to number of employees, other methods used to
classify small companies include annual sales (turnover), value of assets and net
profit (balance sheet), alone or in a mixed definition.
The details of the items reserved for SSIs are given below:
Food and allied industries (9) Wood and wood products (9) Paper products (19)
Plastic products (53) Chemicals and chemical products (7) Natural essential oils
(2) Organic chemicals, drugs and drug intermediates (33) Other chemicals and
chemical products (67) Glass and ceramics (27) Mechanical engineering
excluding transport equipment (137) Electrical machines, appliances &
apparatus (17) Electronic equipments and components (1) Transport equipment
boats and truck body building (3) Auto parts components and ancillaries and
garage equipments (36) Bicycle parts, tricycles and perambulators (41)
Miscellaneous transport equipment (4) Sports goods (7) Stationery items (13)
Others (21)
Small Scale Industries contribute 40% of gross industrial value & provide
foreign exchange. Small industries are second largest employer in India as it has
large capacity to absorb man power. Small Scale industries lead to balanced
regional balance.
Introduction to PPR
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Rasam is a soup dish especially prepared in South Indian cuisine. It is usually

very tangy in taste and quite fluid kind of soup. The sourness if the specialty of
the dish that is added with the help of the various ingredients included in a
specified proportion. Rasam recipe is popular all over the South India with
various regional ingredients. The basic recipe as well as variations is also quite
popular all over the world where South Indian population is existing. Though
Rasam is a south Indian soup, it is mainly popular in Tamil Nadu, whereas in
other places it is prepared with different names such as saaru and chaaru.
Tomato rasam, lemon as well as parupu rasam are some of the popular recipes
around the world.
Rasam is essentially prepared by boiling method. All the ingredients
including tamarind, tomato puree, lentils and spices are boiled together to make
a very thin soup. The rasam powder can be prepared with dried spices and
stored in an air-tight jar for anytime use. The tomatoes can either be used in
puree form or in chopped pieces. The ginger is also added in chopped form
along with tamarind. The pineapple rasam is prepared with small pieces of fresh
tamarind. While making rasam with toor dal, the dal should be soaked in water
along with spices and coconut. The ingredients are then grinded to a coarse
paste before boiling.
Rasam is served as an appetizer in South Indian cuisine. Though it is different
from sambar, but it is often served with rice just like sambar. In traditional
South Indian meal, rasam follows the sambar course and followed by the meal
with
curd
rice.
Rasam is a quite healthy dish. The ingredients included in the dish are
beneficial due to the presence of vitamins and minerals. Lentils are rich in
proteins where lemon and tomatoes are rich in calcium and vitamin C. Tamarind
is a good laxative and also helpful in lowering the cholesterol.
Rich flavor and great taste of these products make these one of the most
favored selections of clients. These products are widely used by various
numbers of clients owing to its purity and safe usage. Manufacturer,
manufacture these products using top quality spices which are sourced from
certified vendors. Besides, these can be availed in various sized packaging as
per the requirements of clients.
Spices from India are going places, with exports on course to top $3 billion
by 2016-17.
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Led by creative marketing strategies to ensure high brand recall, spice majors
are competing with their domestic counterparts through continuous innovations
in packaging, strength in quality and a strong distribution network.
Several local companies have also made their presence felt in the international
market, by following a dual branding strategy to cater to the Indian Diaspora in
the global market.
Indian brands bought out by international spice majors, such as MTR, have
also been straddling both strata.
Sanjay Sharma, CEO, MTR Foods, told Business Line, MTR leads the spices
market in Karnataka and AP. We also export these products across many
countries, and our popular products are sambar powder, rasam powder and
puliogare, amongst others.
The Indian spices market is pegged at 40,000 crores annually, of which the
branded segment makes up 15 per cent.
According to Technopak, the branded space is dominated by national brands
such as Catch, Everest, Ramdev, among others.
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Project at glance
Name of the unit
Tag line
Name of promoters
Communication
address
Especiero Rasam powder

Every house wifes choice
Reena John
Om 9 Geeta nagar,
Mavdi road,
Rajkot
Om 9 Geeta nagar,
Mavdi road,
Rajkot
0281-6533312
0281-3332259
Sole-proprietorship
Registration office
address
Telephone no.
Fax no.
Form of the
organization
Size of the unit
Brand name
Usage of product
SSI registration no.
Number of the
employees
Investment
Day off
Sources of finance
Small Scale Industry

Especiero
Adding taste to food
Applied for same
28
Investment in
working capital
Investment in fixed
capital
Relation with banks
Companys logo
1,19,48,500
Wednesday
25% borrowed loan 29,87,125
75% owned capital - 89,61,375
15,88,500
1,03,60,000
ICICI and HDFC bank
Promoters Background
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Name
Age
Address
Education qualification
Experience
Nature of responsibility
Contribution to unit
Reena John
26
12,Sai Flat,
Yagnik road,
Rajkot
M.B.A (marketing )
2 years in GANDHI SPICES
Marketing department
30 %
Justification of location
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Justification of location is where you're planning to put your business. At the

same time you have to think about the surrounding of the place. If it is worth
starting up a business in that location.
Following are the factors affecting location
1. Availability of market :
Market plays an important role in the selection of location. Market
should be near to the industry so; the immediate sale of product is
possible. It also help in reduction of cost by reducing storing of finished
goods, avoid the cost of transportation etc.
2. Availability of labor :
Without manpower no one can start his or her industry. You have a
machine but no manpower; you cannot start your industry. So, labor
should be available at cheap rate.
3. Availability of transport :
It is required for assembling of raw material and distribution of finished
product. So, all type of transportation facility should be available.
4. Availability of power and water :
Power and water is pre-requirement of an industry. So, the facility of
power and water must be sufficient available.
Organization chart
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BOARD OF DIRECTORS
MANAGING EXECUTIVE
MARKETING
DEPARTMENT
PRODUCTION DEPARTMENT
FINANCIAL DEPARTMENT
PERSONNEL DEPARTM
HEAD OF THE DEPARTMENT

HEAD OF THE DEPARTM
SALES EXECUTIVE
WORKERS
SUPERVISOR
AUDITORS
EMPLOYEES
ACCOUNTANTS
AREA SALESMAN
EMPLOYEE
Vision and mission

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Vision
To create an outstanding value for customers
To render great service
To develop as a great company
To provide world class products to the customers
Mission
The mission of Especiero Rasam powder is to achieve the total customer
satisfaction by safely supplying the highest quality products & rendering the
effectual services possible at the earliest appropriate time.
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Basis and presumption

The profile is drawn in the basis of following presumption
Working hours per day
Working day
Total no. of working hours
Working efficiency
Labor charges
Rate of interest in fixed and working capital
Operative period of the project
20 hrs
300 days
6000hours
80%
As per wage rate
16%
12 years
Value of machinery and equipments is estimated on the basis of

prevailing cost of market.
Implementation schedule
Project implementation will take a period of 10 months from the date of
approved of the scheme break up of activities with relative time for each
activity is show below
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Preparation of project report

Registration of SSI
Financial arrangement
Purchase of raw-material
Installment of machinery
Electrician
Recruitment of staff
TOTAL
1 month
9 days
1 month
15 days
1 month
1 week
15 days
4 month and 25 days
I can start my business with maximum time period of 4 to 5 months.
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Technical aspect
Technical aspects
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No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Particulars
Plant layout
Raw material
Machinery and equipment
Suppliers of raw material and machinery
Flow chart of production process
Production process
Production capacity
Pollution control and energy
conservation
Quality control and standard
Wastage management
Pg no.
Plant layout
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POWER
STATION
MACHINERY
AND
PRODUCTION
ROOM
C
G
A
RAW
MATERIAL
G
A
ROOM
GATE
E
N
E
N
GATE
Plant Layout is the physical arrangement of equipment and facilities within a
Plant. Optimizing the Layout of a Plant can improve productivity, safety and
quality of Products. Un-necessary efforts of materials handling can be avoided
when the Plant Layout is optimized.
Plant layout techniques apply to the case where several physical means have to
be located in a certain area, either industrial processes or services.
The basic objective is to ensure a smooth flow of work, material, people and
information.
There are probably two levels at which layouts are required. In one, the
various departments have to be sited, and in other the items of equipment within
a department need to be located.
There are 4 types of layout
1. Process
2. Product
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3. Hybrid
4. Fixed position
Especiero Rasam Powder follows the process layout.
Raw material
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A material or substance used in the primary production or manufacturing of a

good. Raw materials are often natural resources such as oil, iron and wood.
Before being used in the manufacturing process raw materials often are altered
to be used in different processes. Raw materials are often referred to as
commodities, which are bought and sold on commodities exchanges around the
world.
Following are the material used by BHADRA RASAM POWDERS:
1.
2.
3.
4.
Dry chili powder

Cumin powder
Black pepper
Asafetida
Machinery and equipments

Following are the machines and equipments used in BHADRA RASAM
POWDERS
Micro pulverizer
Multi weighing scale
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Plastic bag sealing

Form fill seal machine
Hot air drier cabinet,
temperature control device
electrically
operated
with
Suppliers of raw material and machinery

Address of Machines and Equipment Suppliers:
1. Rajesh shah , 101/a kothi compound

Dana pith -6
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2. Nilesh Sharma ,36-b shanti colony

Dana pith-7
Address of raw material Suppliers:
3. Manoj vikram
32-d, aji industry
4. Dhananjay Sharma
Tirth Street, aji industry
5. Dhanji Rathod
Laxmi Vadi, Gidc industry.
Flow chart of production process
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G
G
C
C
D
D
L
R
L
R
R
IY
E
Y
I
E
N
N
IA
IA
D
N
D
N
N
IG
G
I
N
N
G
G
G
qpf
uan
aci
lks
tah
yge
tidt
eng
sgo
to
nd
gs
f qp
i ua
n ac
i lk
s ia
h tg
e yi
dn
tg
ge
os
ot
di
sn
g
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Production process
Mechanical or chemical steps used to create an object, usually repeated to
create multiple units of the same item. Generally involves the use of raw
materials, machinery and manpower to create a product.
Process of Especiero Rasam powder is:
1. Cleaning and Removing stalks and seeds:

Chilly, asafetida , cumin seeds are purchased in bulk, from outside area, so it
needs cleaning. First of all, the chilly is to be cleaned and all the dust & dirt is to
be removed from the rest of the seeds.
2. Roasting:
Heat a griddle and cook each one ingredient separately for few minutes.
3. Grinding:
Grind them all together in an electric grinder, and then press through a sieve.
4. Packing:
This is the final operation of our product and that is packing. In this, the Rasam
Masala is packed either in some plastic.
Production capacity
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The total production capacity of the company is 48000units per annum. But on
the 1st year the production capacities at 75% will be use so as to go with the
market. Following will give the total idea of the production capacity of the unit.
Year
1
2
3
Production
75%
85%
94%
No. of units
20,000
30,000
40,000
Pollution control and energy conservation

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Modern technologies for water pollution control, water recycle & product
recovery air pollution control, environmental management system (EMS),
surface active agents and contamination of water, physical methods for the
treatment of organic acid bearing wastes, realities of waste cyanide treatment in
India, biological treatment of aqueous wastes, plastics and generated wastes,
alginate industry waste a source of biogas, acid charred waste as a resource
material for highly active adsorbent.
The project does not create any noise or water pollution. So for as our
pollution is concerned, the latest shuttle kilns and exhaust fan are settled.
Our unit has applied for certificate of (SPCB) state pollution control board, as
our unit having the all standards to get this certificate our unit will not find
problem in getting this certificate.
Quality control and standards

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Quality control, or QC for short, is a process by which entities review the

quality of all factors involved in production.
Quality control emphasizes testing of products to uncover defects and
reporting to management who make the decision to allow or deny product
release, whereas quality assurance attempts to improve and stabilize production
(and associated processes) to avoid, or at least minimize, issues which led to the
defect(s) in the first place.[citation needed] For contract work, particularly work
awarded by government agencies, quality control issues are among the top
reasons for not renewing a contract.
Black pepper
Chili powder
Cumin powder
Asafetida
Method of sampling and test of spices
Technique for spices and condiments
Method of test for spices
IS:1778:1982
IS:2445:1984
IS:2444:1980
IS:1909:1961
IS:1797:1973
IS:1877:1973
IS:1797:1985
Wastage management
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The collection, transportation, and disposal of garbage, sewage, and other

waste products. Waste management encompasses management of all processes
and resources for proper handling of waste materials, from maintenance of
waste transport trucks and dumping facilities to compliance with health codes
and environmental regulations.
Wastages such bad spice seed are collected in distromed and then its dumped
out of the city.
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Market aspects
Market aspect
No.
Particular
Pg no.
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1.
2.
3.
4.
5.
6.
Market potential
Market segmentation
Promotional efforts
Pricing policy
Distribution channel
Competitors
Market potential
Domestic market for spice powders / masala powders (blend of various
spices) is growing at a fast rate. A major quantity of production of spice
powder originates either in the home scale or cottage level units and is
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distributed all over the country. It is estimated that there are about 1500
such units in the country. According to available information there are
about 20-25 large companies producing packed spices are also engaged in
exports. There are very few companies who have attained national market
for their products. In majority of the units 50% of the product mix is
contributed by coriander, chilly and turmeric powders.
India exports substantial quantity of spices and spice products. The
demand for any type of masala is directly related to the taste and
preferences of consumers in the country. However, users go in for various
types of masala. The preference to use masala is quite high because of its
inheritance advertisement as stated above. Even existing users have been
increasing by switching over to the masala.
At present there are about to 70 to 80 small or big units engaged in the
manufacturing of the masala with an average capacity of 20,000 to 30,000
p.m. No food is tasty without spice. We contribute more than 45% in
market.
This product is easily acceptable by market because now a days all the
customer want something spicy which add taste to their food.
Market segmentation
Market segmentation is a marketing strategy that involves dividing a
broad target market into subsets of consumers, who have common needs and
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priorities, and then designing and implementing strategies to target them.

Market segmentation strategies may be used to identify the target customers,
and provide supporting data for positioning to achieve a marketing plan
objective. Businesses may develop product differentiation strategies, or an
undifferentiated approach, involving specific products or product lines
depending on the specific demand and attributes of the target segment.
Main bases of segmentation are:
1.
2.
3.
4.
Geographical bases
Demographical bases
Psychographic bases
Behavioral bases
Especiero segment on the bases of geographical.
Promotional efforts
Basically promotion is a attempt to influence and
most specifically
promotion is an element in an organization. Marketing mix that serves to inform
persuade and remind the marketing of the product and the organization selling it
in hopes of influencing the recipient feeling, belief or behavior.
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There are five forms of promotions.

Personal selling
Advertisement
Sales promotion
Publicity and public relation
Personal selling
ESPECIERO Rasam Masala has advertised their product in GUJRAT
SAMACHAR news paper.
Pricing policy
Method adopted by a firm to set its selling price. It usually depends on the
firm's average costs, and on the customer's perceived value of the product in
comparison to his or her perceived value of the competing products. Different
pricing methods place varying degree of emphasis on selection, estimation, and
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evaluation of costs, comparative analysis, and market situation. See also pricing
strategy.
There are 4 type of pricing
1.
2.
3.
4.
Mark-up pricing
Target return pricing
Value base pricing
Going rate pricing
Especiero have adopted going-rate pricing policy.
Distribution channel
Product distribution (or place) is one of the four elements of the marketing
mix. Distribution is the process of making a product or service available for use
or consumption by a consumer or business user, using direct means, or using
indirect means with intermediaries.
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Competitors
Competitor analysis is an essential component of corporate strategy. It is
argued that most firms do not conduct this type of analysis systematically
enough. Instead, many enterprises operate on what is called informal
impressions, conjectures, and intuition gained through the tidbits of information
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about competitors every manager continually receives. As a result, traditional

environmental scanning places many firms at risk of dangerous competitive
blind spots due to a lack of robust competitor analysis.
Our competitors are
1. Eastern Rasam powder
2. Nirapara Rasam powder
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3. Aachi Rasam powder (Tamil nadu )
FINANCIAL FACTORS
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Financial aspects
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No.
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
Q.
R.
S.
T.
U.
Particular
Total fixed assets
Total working capital
Total investment
Sources of capital
Loan repayment schedule
Depreciation on fixed assets
Production and sales of finished goods (in units)
Stock of raw material
Total fixed cost
Total variable cost
Total cost
Breakeven point (in units)
Breakeven point (in rs)
Table of sales
Table of fixed cost
Table of variable cost
Trading a/c (for 3 years)
Profit and loss a/c (for 3 year)
Balance sheet (for 3 year )
Cost sheet
Statement of profitability
Pg no.
A.Total fixed assets

(A-1) Land and building
1
2
3
4
5
6
Particulars
Land
Land developing and fencing
Factory building
Office buildin0g
Storage house
Bore well
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Amount rs.
80,00,000
2,00,000
3,40,000
2,00,000
80,000
50,000
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7
8
9
10
Water tank
Main gate
Watchmans cabin
Lavatories
20,000
50,000
30,000
30,000
90,00,000
Total (A-1)
(A-2) Plant and machinery

Name Of Machinery
Amount Rs.
Grinder machine
Cleaning
Form fill seal machine
2,00,000
2,50,000
1,50,000
Total (A-2)
6,00,000
(A-3) Preliminary expenses

1
2
3
4
Particulars
Consultancy fees
Project report preparation fees
Legal expenses of company formation
Interest during construction period
Total (a-2)
Amount rs.
50,000
40,000
50,000
60,000
2,00,000
(A-4)Furniture
Particulars
Quantity
Rate per
unit
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Rs.
1
2
3
4
5
6
7
8
9
10
11
12
13
Ordinary tables
Computer tables
Chairs
Sofa sets
Fans
Lights
Doors
Windows
CCTV cameras
Air-conditioners
Refrigerators
Delivery van
computers
10
5
50
2
30
20
10
20
6
2
2
3
5
1,000
1,000
1,00
12,500
4,00
2,00
1,000
5,00
1,500
30,000
10,000
1,00,000
20,000
Total (A-4)
10,000
5,000
5,000
25,000
12,000
4,000
10,000
10,000
9,000
60,000
20,000
3,00,000
1,00,000
5,60,000
Total fixed assets

1
2
3
4
Particulars
Land and building
Plant and machinery
Preliminary expenses
Furniture
Amount rs.
90,00,000
6,00,000
2,00,000
5,60,000
1,03,60,000
Total
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B. Total working capital

(B-1)Raw material (MONTHLY) :
No.
Raw material
Spices
Qty (kg)
50
Rate per kg
200
Amount
10,000
1,20,000
(B-2) Salary and wages

Particulars
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
General
manager
Factory manager
Export manager
Supervisors
Clerk-cum
cashier
Helpers
Foremen
Sweeper
Computer
operator
Mechanic
Salesman
Number of
person
2
3
1
2
5
12,000
10,000
8,000
5,000
36,000
10,000
16,000
25,000
2
1
2
5
4,000
5,000
3,000
3,000
8,000
5,000
6,000
15,000
3
1
2,000
3,000
6,000
3,000
MVMC, RAJKOT
|
Amount per Total amount

month rs.
rs.
20,000
40,000
46
PPR ON
12.
13.
14.
Storekeeper
Peon
Lab technician
Total (B-2)
1
2
1
2000
2000
2500
2500
5000
2500
1,79,500
21,54,000
(B-3) Utilities
Particulars
1.
2.
3.
4.
Amount per month rs.
Power
Fuel
Water
Oil and grease
50,000
20,000
10,000
10,000
70,000
Total (B-4)
8,40,000
(B-4) Other expenses

Particulars
1.
2.
3.
4.
5.
6.
7.
8.
Postage and stationery

Telephone charges
Transport charges
Advertisement expenses
Insurance
Repairs and maintenance
Selling expenses
Other sundry expenses
MVMC, RAJKOT
Amount per month

rs.
2,000
3,000
50,000
50,000
20,000
5,000
20,000
10,000
47
PPR ON
1,60,000
Total (B-4)
19,20,000
Total working capital per month

Particulars
1.
2.
3.
4.
Amount per
month rs.
1,20,000
1,79,500
70,000
1,60,000
Raw materials
Salary and wages
Utilities
Other expenses
Total working capital per month
*
Total working capital for 3 months
5,29,500
3 months
15,88,500
C.Total investment
1.
2.
Particulars
Total fixed assets
Total working capital
Amount rs.
1,03,60,000
15,88,500
Total investments
1,19,48,500
MVMC, RAJKOT
|
48
PPR ON
D.Sources of capital
total investment
owned capital
borrowed capital
(75%)
(25%)
89,61,375
29,87,125
1,19,48,500
1.
Particulars
Owned capital (75%)
Amount rs.
89,61,375
MVMC, RAJKOT
49
PPR ON
2.
Borrowed capital (25%)
29,87,125
Total capital
1,19,48,500
E. Loan repayment schedule

Year
1.
2.
3.
4.
5.
6.
7.
8
9.
10.
Opening balance
1,19,48,500
1,07,53,650
95,58,800
83,63,950
71,69,100
59,74,250
47,79,400
35,84,550
23,89,700
11,94,850
Interest @ 12%
14,33,820
12,90,438
11,47,056
10,03,674
8,60,292
7,16,910
5,73,528
4,30,146
2,86,764
1,43,382
Closing balance
1,07,53,650
95,58,800
83,63,950
71,69,100
59,74,250
47,79,400
35,84,550
23,89,700
11,94,850
------
F. Depreciation on fixed assets

1.
2.
3.
4.
Name of the asset

Land and building
Plant and machinery
Furniture (excluding computers)
Computers
Rate of depreciation
10%
15%
10%
60%
Table of depreciation for 3 years

YEAR-1
No
Asset
Opening
balance rs.
MVMC, RAJKOT
Depreciation
rs.
Closing
balance rs.
50
PPR ON
1.
2.
3.
4.
Land and building

Plant and machinery
Furniture
computers
90,00,000
6,00,000
4,60,000
1,00,000
9,00,000
90,000
46,000
60,000
81,00,000
51,00,000
4,14,000
40,000
Depreciation
rs.
8,10,000
7,65,000
41,400
24,000
Closing
balance rs.
72,90,000
43,35,000
3,72,600
16,000
Depreciation
rs.
7,29,000
6,50,250
37,260
9600
Closing
balance rs.
65,61,000
36,84,750
3,35,340
6400
YEAR 2
No
Asset
Opening
balance rs.
Land and building
81,00,000
Plant and machinery 51,00,000
Furniture
4,14,000
computers
40,000
1.
2.
3.
4.
YEAR 3
No
Asset
Opening
balance rs.
Land and building
72,90,000
Plant and machinery 43,35,000
Furniture
3,72,600
Computers
16,000
1.
2.
3.
4.
G. Estimated production and sales (IN UNITS)

Year
Opening
stock
1.
2.
3.
Production
----2,000
3,200
20,000
30,000
40,000
Sales
Closing stock
18,000
28,800
38,880
2,000
3,200
4,320
H. Stock of Raw Material (IN UNITS)

Particulars
Opening stock
Year 1
Year 2
Year 3
-----
5,000
10,000
Add: purchases
Less: consumption
25,000
25,000
35,000
30,000
45,000
40,000
= closing stock
5,000
10,000
15,000
MVMC, RAJKOT
|
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PPR ON
I. Total Fixed Expenses

No.
1.
2.
3.
Particulars
Salary and wages (60%)
Utilities (50%)
Other expenses (70%)
Amount rs.
12,92,400
4,20,000
13,44,000
Total
30,56,400
1. Fixed cost per unit = Total Fixed Cost

Production at 100% capacity
= 30,56,000
40,000
= 76.4 per unit
MVMC, RAJKOT
|
52
PPR ON
J. Total variable cost

No.
1.
2.
3.
4.
Particulars
Raw materials (100%)
Salary and wages (40%)
Utilities (50%)
Amount rs.
1,20,000
8,61,600
4,20,000
5,76,000
Total
19,77,600
2. Variable cost per unit = total variable cost

= 19, 77,600
40,000
= 49.44
K. Total cost
Total cost = total fixed cost + total variable cost
=
=
30,56,400 + 19,77,600
50,34,000
Total cost per unit =
total cost
= 50,34,000
40,000
= 125.85
MVMC, RAJKOT
|
53
PPR ON
L. Break-even point ( in units )

BEP (in units) = total fixed expenses
SV
=
30,56,400
40 49.44
=
30,56,400
9.44
= 3,23,771
M. Break-even points ( in rs. )
BEP (in rs.) = BEP in units * selling price per unit rs.
= 3,23,771*40
= 1,29,58,840
N. Table of sales
Year
1.
2.
3.
Production
capacity
50%
75%
100%
Sales(in units)
Selling
units
18,000 300
28,800 300
38,880 300
MVMC, RAJKOT
|
Total
Rs.
54,00,000
86,40,000
1,16,64,000
54
PPR ON
O. Table of fixed expenses

No.
Particulars
1.
Salary and wages

(60%)
Utilities (50%)
2.
3.
Total
Year 1
(50%)
6,46,200
Year 2
(75%)
9,69,300
Year 3
(100%)
12,92,400
2,10,000
6,72,000
3,15,000
10,08,000
4,20,000
13,44,000
15,28,200
22,92,300
30,56,400
P. Table of variable expenses

No.
Particular
Year 1
(50%)
Year 2
(75%)
Year 3
(100%)
1. Raw material (100%)
60,000
90,000
1,20,000
2. Salary wages (40%)
4,30,800
6,46,200
8,61,600
3.
Utilities (50%)
2,10,000
3,15,000
4,20,000
4. Other expenses (30%)
2,88,000
4,32,000
5,76,000
9,88,000
14,83,200
19,77,600
Total
Q. FINAL A/CS (FOR 3 YEAR )
Year - 1
MVMC, RAJKOT
|
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PPR ON
Trading a/c of 1st year

Dr.
Particular
opening stock
Raw material
Finished goods
Purchase of raw
material
Salary /wages
Utilities
Gross profit
Total
Cr.
Amt (rs)
--60,000
Particular
Sales
Cash (40%) 2,88,000
Credit (60%) 4,32,000
4,30,800 Closing stock

2,10,000 Raw material 10,00,000
Finished goods8,00,000
64,99,200
72,00,000 Total
Amt (rs)
54,00,000
18,00,000
72,00,000
Profit and loss a/c of 1st year

Dr
Particular
Salary/wages
Utilities
Cr
Amt (Rs.)
6,46,200
2,10,000
Particular
Gross profit
MVMC, RAJKOT
|
Amt (rs.)
64,99,200
56
PPR ON
Other expenses
t- o 6,72,000
t- p 2,88,000
9,60,000
Depreciation
Land and building
Plant and machinery
Furniture
Computer
Provision for tax
Interest on bank loan
Interest in capital
Preliminary expense
9,00,000
90,000
46,000
60,000
4,78,649
14,33,820
5,37,683
20,000
Net profit
Total
11,16,848
64,99,200
Total
64,99,200
Balance sheet of 1st year

Liabilities
Owned capital 89,61,375
Add: i.o.c
5,37,683
Add: net profit 11,16,848
= closing stock
Amt (rs.)
Assets
Land and building
Opening balance 90,00,000
Less: depri
9.00,000
1,06,15,90
MVMC, RAJKOT
57
Amt (rs.)
81,00,000
PPR ON
6
12% bank loan
o/s interest on loan
Creditors 60,000
b/p
- 36,000
Provision for tax
Bank o/d
1,19,48,50
0
1,07,53,65
0
24,000
4,78,649
52,63,457
Plant and machinery

Opening bal
6,00,000
Less: depri
90,000
51,00,000
Furniture
Opening bal 4,60,000
Less: depri
46,000
4,14,000
Computer
Opening bal
Less: depri
40,000
1,00,000
60,000
Debtors 2,59,200
b/r
- 51,840
Preliminary exp 2,00,000
Less: W/O
20,000
Total
3,38,20,70
5
2,07,360
1,80,000
Total
3,38,20,70
5
Year -2
MVMC, RAJKOT
|
58
PPR ON
Trading a/c of 2nd year

Dr.
Particular
opening stock
Raw material
10,00,000
Finished goods
8,00,000
Purchase of raw
material
Salary /wages
Utilities
Gross profit
Total
Cr.
Amt (rs)
18,00,000
Particular
Sales
Cash (40%)
34,56,000
Credit (60%) 51,84,000
86,40,000
Closing stock
Raw material 20,00,000
Finished goods 12,00,000
32,00,000
90,000
6,46,200
3,15,000
89,88,800
1,18,40,000 Total
MVMC, RAJKOT
|
Amt (rs)
1,18,40,00
0
59
PPR ON
Profit and loss a/c for 2nd year

Dr.
Cr.
Particular
Salary/wages
Utilities
Amt (Rs.)
9,69,300
3,15,000
Other expenses
T -o 10,08,000
T -p 4,32,000
14,40,000
Depreciation
Land and building
Plant and
machinery
Furniture
Computer
Provision for tax
Interest on bank
loan
Interest on capital
Preliminary
expenses
Net profit
Total
Particular
Gross profit
Amt (rs.)
89,88,800
Total
89,88,800
8,10,000
7,65,000
41,400
24,000
4,47,504
12,90,438
5,37,683
20,000
23,28,475
89,88,800
Balance sheet 2nd year

MVMC, RAJKOT
|
60
PPR ON
Liabilities
Owned capital 1,06,15,906
Add: i.o.c
5,37,683
= closing stock
12% bank loan

Creditors 90,000
b/p
-54,000
Provision for tax
Amt (rs.)
Assets
Amt (rs.)
Land and building
Less: depri
8,10,000 72,90,000
2,01,42,38
9
95,58,800
83,63,950
36,000
4,47,504
Plant and machinery

Less: depri
7,65,000
43,35,000
Furniture
Opening bal
Less: depri
4,14,000
41,400
3,72,600
Computer
Opening bal
Less: depri
40,000
24,000
16,000
Debtors
31,10,400
b/r
- 6,22,080
24,88,320
Preliminary exp
2,00,000
Less: W/O
20,000 1,80,000
Cash in hand
2,38,66,72
3
Total
3,85,48,64
3
MVMC, RAJKOT
|
Total
1,46,81,92
0
61
PPR ON
Year -3
Trading a/c for 3rd year
Dr.
cr.
Particular
Amt (rs)
opening stock
Finished goods12,00,000 32,00,000
Purchase of raw material 1,20,000
Salary /wages
8,61,600
Utilities
4,20,000
Gross profit
Total
Particular
Sales
Cash (40%) 46,65,600
Credit (60%) 69,98,400
1,16,64,000
Closing stock
Finished goods 16,00,000
61,00,000
Total
1,77,64,000
1,31,63,000
1,77,64,000
MVMC, RAJKOT
|
Amt (rs)
62
PPR ON
Profit and loss a/c for 3rd year

Dr.
cr.
Particular
Salary/wages
Utilities
Amt (Rs.)
12,92,400
4,20,000
Other expenses
table o
Table p
13,44,000
5,76,000
Depreciation
Land and building
Plant and
machinery
Furniture
Computer
Provision for tax
Interest on bank
loan
Interest on capital
Preliminary
expenses
Net profit
Total
Particular
Gross profit
Amt (rs.)
1,31,63,000
Total
1,31,63,000
7,29,000
6,50,250
37,260
9600
19,19,925
11,47,056
5,37,683
20,000
44,79,826
1,31,63,000
MVMC, RAJKOT
|
63
PPR ON
Balance sheet for 3rd year

Liabilities
Owned capital 2,01,42,389
Add: i.o.c
5,37,683
= closing stock
12% bank loan

Creditors 72,000
b/p
- 14,400
Provision for tax
Amt (rs.)
Assets
Land and building
Less: depri
7,29,000
95,58,800
83,63,950
57,600
19,19,925
Plant and machinery

Less: depri
6,50,250
36,84,750
Furniture
Opening bal
Less: depri
3,72,600
37,260
3,35,340
Computer
Opening bal
Less: depri
16,000
9,600
7,000
33,35,232
1,80,000
Cash in hand
4,50,60,17
3
MVMC, RAJKOT
|
65,61,000
2,51,59,89
8
Debtors 41,69,040
b/r
- 8,33,808
Preliminary exp 2,00,000
Less: W/O
- 20,000
Total
Amt (rs.)
3,09,56,85
1
4,50,60,17
3
Total
64
PPR ON
Cost sheet
Particular
Opening stock of raw
material
Add: purchase of raw
material
=
Less: closing stock
= consumption of raw
material
Add: salary and wages
Add: utilities
= prime cost
Add: utilities
= factory cost
Add: salary and wages
Add: other expenses
= office cost
Opening stock of finished
goods
Less: closing stock of
finished goods
= cost of product
Add: other expenses
= total cost
Add: profit
= sales
Year-1
Year-2
Year-3
--10,00,000
20,00,000
60,000
90,000
1,20,000
60,000
18,00,000
-17,40,000
10,90,000
32,00,000
-21,10,000
21,20,000
61,00,000
- 39,80,000
4,30,800
2,10,000
-10,99,200
2,10,000
- 8,89,200
6,46,200
6,72,000
4,29,000
---
6,46,200
3,15,000
-11,48,800
3,15,000
-8,33,800
9,69,300
10,08,000
11,43,500
8,00,000
12,92,400
4,20,000
-22,67,600
4,20,000
-18,47,600
12,92,400
13,44,000
7,88,800
12,00,000
8,00,000
12,00,000
16,00,000
- 3,71,000
2,88,000
83,000
53,17,000
54,00,000
31,43,500
4,32,000
35,75,500
50,64,500
86,40,000
35,88,800
5,76,000
41,64,800
89,98,200
1,31,63,000
MVMC, RAJKOT
|
65
PPR ON
Statement of profitability
Particular
Sales
-Variable expenses
Contribution
-Fixed Expenses
EBDIT
-Depreciation
EBIT
-int. on loan and i.o.c
EBT
Taxes 30% of EBT
Profit after tax
Year 1
Year 2
54,00,000 86,40,000 1,31,63,000

9,88,000 14,83,200
19,77,600
44,12,000 71,56,800 1,11,85,400
15,28,200 22,92,300 30,56,400
29,83,800
48,64,500
81,29,000
9,00,000
8,10,000
7,29,000
20,83,800 40,54,500
74,00,000
19,71,503
18,28,121
16,84,739
1,12,297 22,26,379
57,15,261
33,689
6,67,914
17,14,578
78,608 15,58,464
40,00,683
MVMC, RAJKOT
|
Year 3
66
PPR ON
Risk Factors
MVMC, RAJKOT
|
67
PPR ON
1. Changes in government policies may affect the profitability of the

firm, for e.g. Government gives subsidies to the farmer etc.
2.
The intensity of competition may increase which may not be

favorable for this business.
3. My industry depends on agricultural product, and agricultural product

depends on rain, rain is not certain, indirectly demand of my product
is not certain.
4.
Price of my product is not fixed of all time, so demand is also

uncertain.
SWOT Analysis
MVMC, RAJKOT
|
68
PPR ON
S STRENGTH: Harmonious and cordial relationship among employees

: Favorable premises for transportation
MVMC, RAJKOT
|
69
PPR ON
W Weakness: Storage of masala
O Opportunities: now-a-days pizza market is very growing so it is good for

company to earn profit and good image in the market
T- Threat: future increase in cost of raw material
Future plans
MVMC, RAJKOT
|
70
PPR ON
MVMC, RAJKOT
|
71
PPR ON
Todays market is full of competition, in today business, if there is no change

in product, we will not survive in the market for longtime.
1. So my future plan is to export more and more number of packets.

2. Now at the initial stage my industries are not able to produce in bulk, so
in future I will introduce new machinery to my company for bulk
production.
Conclusion
MVMC, RAJKOT
|
72
PPR ON
As such we as a citizen of India having some responsibility to uplift the

economic level and also make the life more and more compatible.
In view of above all information which can have the best way to get
comfort in the life of all household work. In earlier time, Rasam Masala is being
MVMC, RAJKOT
|
73
PPR ON
prepared at home and it is consider as time consuming & wastage of energy. But
now with the introducing the readymade Rasam Masala now it is easily to bake
the Rasam Masala whenever you want to eat.
Thus, we are feeling great pleasure to make the product in front of you
and so expecting move response from market& trying to satisfying the
prospecting customer.
References
MVMC, RAJKOT
|
74
PPR ON
No.
book name / website
author name
edition
1. www.businessdictionary.com
2. www.wikipedia.com
MVMC, RAJKOT
|
75
PPR ON
3. Marketing Management
DR. R.B.Rudani Revised Edition-2012
MVMC, RAJKOT
|
76

Product Project Report On RASAM POWDER

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Product Project Report On RASAM POWDER

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ESPECIERO RASAM POWDER

Academic year: 2014-15

Matushri Virbaima Mahila College of COMMERCE

Rasam is a soup dish especially prepared in South Indian cuisine. It is usually

Especiero Rasam powder

Small Scale Industry

Justification of location is where you're planning to put your business. At the

HEAD OF THE DEPARTMENT

Vision and mission

Basis and presumption

Value of machinery and equipments is estimated on the basis of

Preparation of project report

I can start my business with maximum time period of 4 to 5 months.

A material or substance used in the primary production or manufacturing of a

Dry chili powder

Machinery and equipments

Plastic bag sealing

Suppliers of raw material and machinery

1. Rajesh shah , 101/a kothi compound

2. Nilesh Sharma ,36-b shanti colony

Address of raw material Suppliers:

Flow chart of production process

1. Cleaning and Removing stalks and seeds:

Pollution control and energy conservation

Quality control and standards

Quality control, or QC for short, is a process by which entities review the

The collection, transportation, and disposal of garbage, sewage, and other

priorities, and then designing and implementing strategies to target them.

There are five forms of promotions.

Especiero have adopted going-rate pricing policy.

about competitors every manager continually receives. As a result, traditional

Our competitors are

1. Eastern Rasam powder

2. Nirapara Rasam powder

3. Aachi Rasam powder (Tamil nadu )

A.Total fixed assets

(A-2) Plant and machinery

(A-3) Preliminary expenses

Total fixed assets

B. Total working capital

(B-2) Salary and wages

Amount per Total amount

Amount per month rs.

(B-4) Other expenses

Postage and stationery

Amount per month

Total working capital per month

Borrowed capital (25%)

E. Loan repayment schedule

F. Depreciation on fixed assets

Name of the asset

Table of depreciation for 3 years

Land and building

G. Estimated production and sales (IN UNITS)

H. Stock of Raw Material (IN UNITS)

I. Total Fixed Expenses

1. Fixed cost per unit = Total Fixed Cost

J. Total variable cost

2. Variable cost per unit = total variable cost

Total cost per unit =

L. Break-even point ( in units )