INDEX

No Particulars Page No.

1 Introduction 7
2 Project at a Glance 8
3 Management set up 9
4 Bio-Data of Promoters 10
5 Justification of Location 12
6 Product Details 14
7 Market Potential 15
8 Marketing Strategies 17
9 Manufacturing Process 18
10 Implementation of Schedule 19
11 Presumptions 20
12 Staff and Labour 21
13 Raw Material 22
14 Contingencies 23
15 Utilities 24
16 Working Capital Requirement 25
17 Fixed Capital 26
18 Project Fund 27
19 Sources of Finance 28
20 Cost of Production 29
21 Break Even Point 30
22 Ratio Analysis 31
23 Risk Factors 33
24 Future Plans 34
25 Name and Address of Machinery Suppliers 35
 Introduction

Gujarat is a state where temperature starts from 37 dg to

40 dg and goes up to 40 to 45 dg in summer season. Apart
from that majority part of state of Gujarat is facing deep
water crisis in summer. Rajkot is one of the fast developing
city of Gujarat and it is one of the best center in various
economic and industrial viz.

2
 In spite of higher traffic of people in Gujarat the
problem of drinkable water is great and Mineral Water
industry attempts to lessen this problem.

Factually supply of Mineral Water is not satisfying even

50% of the demand. Several firms are already engaged in this
business but capacity & production is limited and demand for
the same is increasing violently. The product will enjoy great
Marketing acceptance.

3
 Project at a Glance

Name of the unit Ganga Mineral Water

Form of Organization Partnership
Name of promoters 1. Mr. Vala Sanjay C.
2. Mr. Kansagara Hardik V.
3. Mr. Paneliya Ramesh M.
4. Mr. Savaliya Mahesh D.
Product Mineral Water
Size of the Unit Small Scale Unit
SSI Registration No. Application has been made registration
number has not yet been allotted
Location of the Unit Ganga Mienral Water,
Shapar (Veraval), Rajkot.
Cost of the Project 1,24,12,000
Sources of Finance Ownership : - 1,06,12,000
Borrowed Capital: - 18,00,000
Brand Name Pure

4
 Management Set Up

The Four promoters are entitled to take the post of

directors. Mr. Vala Sanjay C. and Mr. Kansagara Hardik V.
shall be non working partners due to their prior engagements
in their current profession/service.

Mr. Paneliya ramesh v . and Mr. Savaliya Mahesh D.

shall be the working partners. Mr. Savaliya Mahesh D. will
handle the production and accounts department Mr. Paneliya
Ramesh V. shall have under her the sales and distribution
department along with personal department.

5
 Bio-Data of Promoters
Partner I
Name Mr. Vala Sanjay C.
Age 21
Address Balajipan Nana mahuva road,
n/r hanuman temple, Rajkot
360 001.

Qualification B.B.A
Financial cont. 30%

Partner II
Name Mr. Kansagara Hardik V.
Age 22
Address Shivam Colony, khambhala,
junagadh.
Qualification B. Sc. (I.T.)
Experience 2 Years in Ajmera Cement
Financial cont. 30%

6
 Partner III

Name Mr. Paneliya Ramesh V.

Age 24
Address Guru Ashish Persana Nagar,
Rajkot 360 001.
Qualification M.B.A. (Marketing)
Experience Policy making and controlling
the Finance and Production
areas.
Financial cont. 20%

Partner IV

Name Mr. Savaliya Mahesh D .

Age 24
Address Ashish Persana Nagar,
Manavadar Amreli- 365640
Qualification M.B.A. with Marketing
Experience Decision making and handling
the sales and distribution and
Personal Department.
Financial cont. 20%

7
 Justification of Location

The location of a unit is of a crucial decision an

entrepreneur has to make. There are various factors affecting
such a decision. The location that Ganga Mineral Water has
chosen for itself is the outcome considered after analysis
various facts.

Cost of land: -
The land cost in this area is lower as compared to land
in the middle area of the city. After cost of analysis of land,
price and transportation cost the location has been selected.

Labour: -
Cheap labour resides in large Quantity in this area.
Therefore, the availability of labour is convenient and
economical.

Transportation: -
The transport cost is comparatively less as the market
place is away only at a distance of 10-12 Kms.

8
 Availability of Raw-Material: -
The basic Raw-Material is water. Water is easily
available.

Market Reach: -
The market place where in daily specified quantity and
distribution to local groceries and supermarkets and
Highways is near to the location chosen.

9
 Product Details

Water is a basic necessary of life, something without

which we cant exist. Unfortunately, most of the water which
reaches our home and establishment is filled with imparities
despite being threated at source.

The Pure Mineral Water will be available in the

market to the customers in pouches, bottles and jars.

The production capacity of this Mineral Water Plant is

24,000 Liters per Month.

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 Market Potential

Water is common denomination for every living thing

on the earth. Various impurities such as bacterias, organics,
metals mineral salts and gases are present in water which is
naturally available that we cannot see by eyes but once we
look at microscopic lense picture will clear to us that this
impurities cause various diseases in our body and i.e. while
we step into to introduction of a complete water. Purifying
system which produces healthy water at nominal cost and
reaches to our day to day use. Especially for drinking water
purpose.

Summer being a period of holidays season of certain

products, marriages etc brings more and more visitors and
also compel local people to come. Out of their residence to
fulfill social and other activities. In spite of higher traffic of
people in Gujarat the problem of drinkable water is great and
mineral water industry attempts to lessen this problem.

11
 Considering the potentiality of demand and poor supply
of mineral water the product will enjoy great marketing
acceptance because supply of mineral water will not meet the
huge demand of mineral water. The benefit of ready
marketing of the product as also to translate this essential
requirement of people and market acceptance into monetary
terms of real business.

As we know that the water is the essential and easy

available element for survival of life, there is no one on the
earth who is not using water, and today in this health
conscious age and as there are so many water dieses are
attracting the life of human being every one think of use of
pure and treated water. Looking to this criteria and also we
require watch in industries and laboratory this project has
bright future.

12
 Marketing Strategy

With the launch of this product, Ganga Mineral Water

enters the market with an intention to penetrate in it with new
strategies likes:

(1) Daily Free Delivery: -

Ganga Mineral Water gives the unique facility to its customers

of daily free delivery in offices, home, educational institute and

other places twice a day.

(2) Unique Concept: -

This concept is totally unique. The Ganga Mineral Water uses

Bio-Grade Plastic to packing their product. So, the plastic does

not affect the water.

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 Manufacturing Process

There are steps involved in this system as under:

Water pumping from bore well.
Addition of Alum and other Chlorination dosage in raw
water storage tank.
Filtration by sand filters.
Filtration by activated carbon filters.
Filtration by micron filters.
Cosmetic pressure system.
Passing of water from no membranes.
UV systems for bacteria killing.
Final polishing filters.
Clean/treated water storage tank.
Packing of water.

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 Implementation of Schedule

No. Activity Completion Time

1. Acquisition of land and construction of 1 Month
building.
2. Approval of loan and other formalities. 1 Month
3. Installation of machinery. 1 Week
4. Arrangement of power. 1 Month
5. SSI registration. 20 Days
6. Staff appointment. 3-4 Weeks

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 Presumptions

I Working days: 6 Days a Week

25 Days a Week
II Shift: Double shift
III Working Hours: 10 A.M. to 5 P.M.
6 P.M. to 11 P.M.
IV Government Policy: Very low tax rate prevails at 0.1%
V Banking Policies: (a)Loan Rate 12% pa.
(b) Subsidy of 10%

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 Staff and Labour

No. Particulars No. of Rate Amt. Amt. (per

Persons per day (per year)
month)
1. Manager 1 4,050 48,600
2 Supervisor 1 3,300 39,600
3. Accountant 1 4,500 54,000
4. Distributors 1 3,000 36,000
5. Salesman 4 70 8,400 1,08,000
6. Unskilled Labour 12 35 12,600 1,51,200
7. Driver 2 3,000 72,000
8. Peon Cum 2 1,500 18,000
watchman
TOTAL 40,350 5,27,400

Therefore, staff salary for three months will be:

40,350 3 = 1,21,050

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 Raw Material

The raw material required to produce mineral water are as

follow:

No. Items Rate Daily Yearly Yearly

(Rs./Lit.) Reqmt. Reqmt. (Rs.)
(Lit.) (Lit.) Amount
1. Raw Material 8.88 24,000 2,13,120 8,53,372
2. Alum 12.00 5,000 60,000 1,56,996
3. Chlorine & 15.00 6,000 90,000 98,372
other Anti
effluents
TOTAL 11,08,740

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 Contingencies Expenses

No. Particulars Amount Amount Rs./Annum

Rs./Month
1. Traveling expenses 9,000 1,08,000
(Rs. 300 daily)
2. Repairs & 3,000 36,000
Maintenance
3. Packaging 14,000 1,68,000
Expenses

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 Utilities

No. Particulars Amount

(Rs./Annum)
1. Water (Rs. 8,000 Per Month) 1,08,000
2. Electricity (Rs. 2,000 Per Month) 24,000
TOTAL 13,20,000

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 Working Capital Requirement

No. Particulars Amount (per

months)
1. Postage & Stationery 800
2. Traveling Expenses 7,000
3. Electricity Expenses 10,000
4. Telephone Expenses 2,000
5. Salaries 40,350
6. Repairs & Maintenance 2,500
7. Raw Material 4,86,634
8. Packaging 14,000
9. Interest 6,000
10. Depreciation 30,716
TOTAL 6,00,000

Working Capital Requirement for Three Months:

6,00,000 3 = 18,00,000

Working Capital Requirement for Whole Years:

6,00,000 12 = 72,00,000

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 Fixed Capital

Fixed Assets
No. Particulars Amount
1. Land (3600 sq. mt). 25,20,000
2. Building (construction cost). 33,92,000
3. Plant & Machinery. 40,00,000
4. Other Assets
Erection & Commissioning Cost. 5,00,000
Furniture & Electricification. 1,00,000
Consultancy Charges 1,00,000
Total Fixed Cost 1,06,12,000

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 Sources of Finance

No. Particulars % (Percentage) Amount (Rs.)

1. Owned Capital 79.49 1,06,12,000
Mr. Sanjay (30%)
Mr. Hardik (30%)
Mr. Ramesh (20%)
Mr. Mahesh (20%)
2. Borrowed Capital 20.51 18,00,000

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 Project Fund

Particulars Amount (Rs.)

Fixed Capital 1,06,12,000
Working Capital 18,00,000
Total Project Cost 1,24,12,000

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 Cost of Production

No. Particulars Amount (Rs.)

1. Raw Material 4,86,634
2. Labour (Direct) 2,68,000
3. Administrative Cost 9,66,000
4. Depreciation 33,200
5. Repairs & Maintenance 40,000
6. Interest 70,000
7. Power & Fuel 1,00,000
TOTAL 19,63,834

Direct labour includes wages of supervision and unskilled

laborers.
Administrative costs includes salaries of staff, traveling
expenses, packaging expenses, postage and stationery and
telephone charges.
Depreciation includes the total depreciation of all.

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 Break Even Point/Analysis

Break Even point is that level of activity where there is

no profit no loss. Break Even Point can be derived through
mathematical formula or graphical chart.

Break Even Chart indicates approximate profit or loss

at different levels of sales volume. However, Break Even
Analysis is based on certain assumptions, they are as follows:

All costs can be segregated in fixed and variable

components.
Production and Sales are equal.
Selling price remains constant at all level.

B.E.P. in Rupee Value: -

Contribution = Fixed Cost + Profit
= 4,92,032 + 4,96,480
= 9,88,512

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 P/V Ratio = Contribution 100
Sales
= 9,88,512 100
33,20,000
= 29.77%

Therefore B.E.P.= Fixed Cost

P/V Ratio
= 4,12,032
29.77%
= 16,52,777.9

B.E.P. in Percentage:
B.E.P. = Fixed Cost 100
Fixed Cost + Profit
= 4,92,032 100
4,92,032 + 4,96,480
= 49.77%

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 Ratio Analysis

Return on Investment: -
R.O.I. = Net Profit 100
Capital Employed
= 4,96,480 100
16,86,920
= 29.43%

Net Profit Ratio: -

N.P.R. = Net Profit 100
Sales
= 4,96,480 100
33,20,000
= 14.95%

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 Risk Factors

(1) Competition: -
Existing competition from universal system, zoom beverages

sugar mineral water etc.

(2) Seasonal Fluctuations: -

Seasonal Fluctuations during the year especially
in summer because the basic raw material is water. So,
in summer there is scarcity of water.

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 Future Plans

The firm plans the following for years to come:

It may increase its production of both in Pouches &
Bottles.
The firm plans to have take big orders from Marriages,
Functions and in Parties.
To increase the production capacity and thereby
employing more and more number of workers.

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 Name & Address of Machinery
Suppliers
s
1. Ion Exchange (India) Limited
Narobi Appartment,
Naer Ellora Park Telegraph Office,
Baroda 390 007.

2. Doshi Ion Exchange and Chemical Industries

Limited
Plot No. 24, 25, 26,
Phase 2,
GIDC VATAVA,
Ahmedabad.

3. Shree Ram Trading Compnay

B / 102 Adarsha Complex,
Jail Road,
Bhavnagar,
Gujarat.

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