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PREFACE

The concept of entrepreneurial studies has appreciably


changed in nature & concept over the years. Entrepreneurial
development & management has come to be recognized
globally as the key to rapid & sustainable economic
development as well as the welfare & progress of mankind

The small scale industries (SSI) occupies an important


position in the industrial economy of the country Because of
advantages in terms of low investment. High potential for
employment generation, etc.

As I am student of T.Y. B.B.A. a professional degree


course. Include one subject called Entrepreneur &
Management of small business (E.M.S.B.) which guide the
student how to become a good entrepreneur & what factors
are keeping in their mind while setting up the small scale
industries (SSI).

I have an immense pleasure in presenting my views after


doing hard work in a very clear sense. I have tried my level
best to make this product project report (PPR) excellent. I
hope that this PPR will obviously satisfy the subject
requirement & also provide a general look of PPR report.

1
ACKNOWLEDGEMENT
I feel great pleasure that I get an opportunity to present
my product project report (PPR) before you.

Firstly, I am thanking to my lecturer Nirav S. Joshi, who


is one of the faculty member of science & commerce (BBA).
He has tried very hard & put lots of effort to guide me I am
also thankful to him because he had put their valuable time to
me.

Secondly, I am also thank to the honorable Mr. Shailesh


M. Jani, director of Geetanjali College.

And finally I am also very much thankful to my friends


& my parents who guided me during preparation of product
project (PPR).

Date:

Place:

Signature

(Pansuriya Anil R.)

2
DECLARATION
I undersigned Pansuria Anil , the student of T.Y. B.B.A.
here by declare that this product project report (PPR) is my
own work. It has been prepared by me, under the guidance &
direction of lecturer Mr. Nirav S. Joshi, the one of the faculty
member of Geetanjali College of Computer Science &
commerce (BBA)

The work has not been previously submitted to any other


university for any other examination.

Date:

Place:

Signature

(Pansuriya Anil R.)

3
INDEX
SR. SUBJECT PAGE NO.
NO.
1 Introduction 5
2 Project at Glance 6
3 Implementation schedule 7
4 Promoters Background 8
5 Justification of Location 10
6 Product detail 12
7 Product consumptions 13
8 Advertising & marketing Analysis 14
9 Market Demand 15
10 Competitors 16
11 Production process 17
12 Investment 18
13 Financial Details 19
14 Working capital 20
15 Cost of production 23
16 Turn over (sales) 24
17 Net Profit/ Profitability analysis 24
18 Ratio analysis 25
19 Total fixed cost 26
20 B.E.P. Calculation 27
21 Name & address of suppliers 28
22 Bibliography. 33
INTRODUCTION

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The electronic quartz analog clock has brought a
revolution in the clock industry. The quartz clock were
introduced in the Indian market in 1977-78 & since then
market as well as production in India has been growing at a
tremendous rate some of the main features of the quartz clock
are:

High accuracy
No winding required
Work in any position
Very low power consumption

Hardly any service required & the longer life of the clock
A typical quartz clock consists of the following
components:

(1) Mainly electronic circuit block (with components


like IC, Quartz crystal, Capacitors, etc. mounted on a printed
circuit board)

(2) Stepper motor (consisting of coil, stator & rotor)

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PROJECT AT GALNCE
Unit Name: Bharat Electronic Quartz Clock

Form of Business
organization: Partnership Firm.

Location of Unit: 22- GIDC,


Metoda,
Kalavad Road,
Dist. Rajkot

Communication
Address: 22- Jimmy Tower
Gondal Road,
Rajkot 360002
Gujarat (India)

Product: Electronic Quartz

Product Name: Bharat Quartz

SSI reg. No.: Application has been made

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IMPLEMENTATION SCHEDULE
The major activities in the implementation schedule have
been listed & the average time for implementation of the
project is estimated at 12 months.

(1) Preparation of Project Report: 1 month

(2) Registration & other formalities: 1 month

(3) Sanction of loan by financial institutions:3 months

(4) Plant & machinery

(a) Placement of orders 1 month

(b) Procurement 2 months

(c) Power connection 2 months

(d) Installation 2 months

(5) Procurement of row materials: 2 months

(6) Recruitment of technical personnel, etc 2 months

(7) Trial production: 11 months

(8) Commercial production: 12 months

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PROMOTERS BACKGROUND

(1) Name : Pansuria Anil R.

(2) Age : 22 years

(3) Educational/
Qualifications : BBA.

(4) Working Area : Promoters

(5) Address : JYOTI


150. Feet Ring Road,
Ravi Ratna Park
Block -09 Room No.102
Rajkot 360007

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(1) Name : Chirag P. Mavani

(2) Age : 26 years

(3) Working area : Marketing Manager

(4) Educational/
Qualifications : MBA (Marketing)

(5) Experience : 2 years in marketing field


Of electronic Quartz

(6) Address : 150 feet ring road,


Shastri nagar,
Rajkot 360007

(7) Investment of
Both partner : 50 : 50

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JUSTIFICATION OF LOCATION
Plant location refers to the area where the plant will
operate to produce goods & services. The selection of an
appropriate location enables the factory to operate smoothly.
Efficiently with the minimum cost. It is estimated that
manufacturing & distribution cost may vary to an extent of
10% simply by virtue of the choice of plant location.

The factory is the SSI units & is located in GIDC area


i.e. Gujarat industrial & development corporation. Because of
the units situated in GIDC, the units enjoy all incentives &
certain subsidy made available to all industrial units. The
result of this is reduction of cost of production.

There are number of factor should be considered while


selecting the best site for locating the factory

(1) Near ness to market : The electronic quartz is a


consumer goods. If the company is near to the market then t
come to know their customer choice & preference &
accordingly they adjust in their quartz.

(2) Man power : Man power is the main & important


part of any factors which keep the other activities in run. All
type of skilled workers are to be available in GIDC area &
also from the village which is near to it.

(3) Utility Service: Utility service like.


(a) Electrical supply is easily available & at cheaper
rates in GIDC area.
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(b) Water supply is easily available

(4) Transportation: Because of the units situated in


G.I.D.C. the mode of transportation is road & easily
available & the rate prevailing in such are is also cheaper than
other location.

(5) Communication: For communication purpose, the


GIDC area is the best area because the telephone connection
is already been made to the Telecom Department. A post
office is already operating & other facilities like Telex & Fax
are also available & provided for the smooth functioning the
units.

(6) Raw materials: Because our company is


manufacturing electronic quartz clock. So the raw materials
required is the semi finished goods which are easily available
in GIDC area at a cheaper rate.

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PRODUCT DETAILS
A typical electronic quartz clocks consists of the
following components/ parts & they are as describe bellows:

This consists of mainly electronic circuit block with


components like I.C. quartz crystal, capacitors etc. mounted
on a printed circuit board & steeper motor (consisting of will
stator & motor)

Mechanical components consisting of gear & upper &


lower covers to hold the movement parts.

Appearance parts consisting of cabinet, hands & dial.

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PRODUCT CONSUMPTIONS
Today we see that many local electronic quartz
companies are established. Because of the many company
concerned with electronic quartz, manufacturing different
models & type of quartz & due to this competition is more in
the markets because, consumers only buy that products which
is highly qualitative, quantitative, affordable price etc.

So after looking this, our company manufacturing a


different types of quartz clock like:

1. Ordinary plastic case

2. Good finished plastic case

3. Ordinary picture

4. Laminated picture

5. Pendulum (simple)

6. Pendulum striking etc.

& their quality, quantity, etc are better than others & the
demand of our will obviously satisfy their need.

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ADVERTISING AND MARKET
ANALYSIS
(1) Market analysis : Generally before launching new
product in the market it is necessary that market is studied
first because it provides the current trends which are
prevailing in the market.

If we look from the past, consumer electronic sector has


achieved a tremendously year. The electronic quartz clocks
are technically superior to the mechanical ones.

(2) Advertising : To induce the customers & to inform


about the new change in product or any adding of new
features, changes in their model, etc. advertising is necessary.

Because of the units is a SSI unit therefore the


advertisement is given to the local areas which is situated near
by it through local media like newspaper, Regional T.V.
Channels, etc.

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MARKET DEMAND
The demand of is more in local market & it is increasing
day by day to the consumers choice are increasing day by day
they go on purchasing that products which are of good quality
quantity, good looking etc.

So, in considering all factors we are producing our


products & due to this. The demand of BHART
ELECTRONIC QUARTZ is high is the market.

15
COMPETITIONS
Competitions are called the barriers or the rival who put
their efforts against their rival firms. So it is very necessary
that we should more ahead by looking to the competition first
& the next others.

By looking to the local area, the rival firms against the


are:

(1) Jhontys quartz.

(2) Corona quartz

(3) Sonam quartz

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PRODUCTION PROCESS
The process of assembly of clock is divided into two
parts
(a) Assembly of Movement
(b)Assembly of Clock

(a) Assembly of Movement: The components viz.


electronic circuits block (ECB), stepper motor, gear &
movement covers require to be assembled in dust free
atmosphere. The gears in most of the cases require being
lubricant. The connecting wire E.C.B. have to be soldered to
the battery clips & the coil is to be soldered to the ECB.

Before the movement is assembled, the ECB should be


tested on the universal Timer Quartz Analog tester & if any
adjustment for the time accuracy is required the same should
be carried out.

The complete assembled movement can also be procured


from out side i.e. from the units who are exclusively
assembling / manufacturing there movements.

(b) Clock assembly: The finished module is now fitted


into cabinet case which is fitted with a dial. Next the hands
are mounted on the movement & then the glass &back cover
of cabinet are fitted. The needles have to be properly fitted so
as to be at accurate positions on dial while showing time.
Finally the battery putted in to the clock is put for testing for
at least 2 days before they are dispatched.

17
INVESTMENT
According to small scale industries rules & regulation,
the investment in plant & machinery etc. is not more than 3
crores

So, on the basis if this above investment the investment


of Bharat Electronic Quartz Clock ltd. is Rs. 10,00,000

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FINANCIAL DETAILS
(1) Land & Buildings Description:

No. Description Per Sq. M. Amount (2)Ma


c 1 Built up area 100 50,000 hine
r Sr. Description
@ 500 sq. meter Qty. Rate Total y
No. 2 Office & Stores 25 12,500 and
1 Quartz@clock Tester
500 sq. meter 2 50,000 1,00,000
2 Multimeters
3 Working shed 375 1,00037,500
3,000
@ 500 sq. meter 1,03,000
3 Electrification&installation
Total - 10,300
1,00,000
charges@10% of cost of
Machinery & Equipment
4 Totalcost of machinery & 1,13,300
equipment
5 Cost of office 60,000
equipment & fumitures
6 Cost of tools / jigs / fixtures 10,000
7 Pre operative expenses 10,000
TOTAL - 1,93,300
Equipment
WORKING CAPITAL (PER MONTH)
(1) Staff & Labour (Technical, office , sales & other)

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Sr. No. Category No. Salary Total
1 Manager 1 10,000 10,000
2 Skilled workers 2 5,000 5,000
3 Semi skilled 1 1,000 1,000 (2)
4 Sales - assistant 1 2,000 2,000 Raw
5 Typist / clerk 1 1,500 1,500
6 Peon / chowkidar 1 1,000 1,000
20,500
7 Perquisites(15% salary) 3,075
Total salary 23,575
Say 23,600
materials (per month on single shift basis)

Sr. Description of Components Qty. Rate Total


No.
1 Quartz movement mechanism 1 32 32
2 Cabinet with dial & 1 40 40
hands with packing
Total - - 72

Total raw material / components required for one month


=3000 X 72

=2, 16,000

(3) Utilities (Per month):

Sr. No. Description Total


20
1 Power 500 unit @ 1.60 P.U. 800
2 Water 200
Total 1,000

(4) Other Contingent expenses (per month)


Sr. No. Description Total
1 Advertisement & publicity 3,000
2 Rent 5,000
3 Transport 10,000
4 Consumable stores 500
5 Insurance & taxes 200
6 Stationery 500
7 Postage & telephone 1,000
8 Repair & maintenance 500

21
(5) Total working capital require (per month)

Sr. No. Particular Total


1 Staff & labour 25,600
2 Raw material 2,16,000
3 Utilities 1,000
4 Other contingent expenses 20,700
Total 2,61,300

(6) Working capital for 3 Months:

= 2, 61,300 X 3

= 7, 83,900

(7) Total investment:

Fixed capital 1, 93,300

Working capital 7, 83,900


(3 months)

TOTAL 9, 77,200

22
COST OF PRODUCTION (PER ANNUM)
Sr. Descriptions Amount
No.
1 Total recurring expenditure 29,77,200
2 Dep. On machinery & equipment @ 10,300
10%
3 Dep. On office equipment @ 20% 12,000
4 Dep. On tools / jigs / fixtures @ 20% 2,000
5 Interest on total investment 1,95,440
Total 31,96,940

23
TURNOVER (PER YEAR)
Sr. Sales Qty Rates Value (Rs)
No. (Rs)
1 Electronic Quartz 3800 100 38,00,000
Analog clocks

NET PROFIT OF THE YEAR (PROFITABILITY


ANALYSIS)

Particulars Amount
Sales 38,00,000
Less: cost of production 31,96,940
Total 6,03,060

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RATIO ANALYSIS
Net Profit Ratio: (NPR)

NPR = Profit X 100


Sales

= 6, 03,060 X 100

38, 00,000

= 15.87%

Rate of Return (ROR)

ROR = Profit X 100


Total capital investment

= 6, 03,060 X 100
9, 77,200

= 61.71%

25
TOTAL FIXED COST (FC)
Sr. Particular Amount
No.
1 Depreciation 24,300
2 Rent 60,000
3 Interest on capital investment 1,95,440
4 Insurance 2,400
5 40% of salary & wages 49,920
6 40% of other contingent expenses 79,200
Total 4,11,260

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BREAK EVEN POINT (B.E.P.)

B.E.P. = Fixed cost X 100


Fixed cost + Net Profit

= 4, 11,260 X 100
4, 11,260 + 6, 03,060

= 4, 11, 26,000
10, 14,320

= 40.54 %

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NAME AND ADDRESS OF SUPPLIERS
(1) Address of Machinery & Equipment Suppliers

(a) M/s Toshniwal Bros. (Delhi) Pvt. Ltd.

3 E/8, Jhandewalan Extn,

New Delhi -55

(b) M/s Ruttonsha simpson Pvt. Ltd.

14, jhandewalan link road,

New Delhi -55

(c) M/s Motwane Pvt. Ltd.

68, janpath P.B.No.47,

New Delhi

(d) M/s British Physical Laboratories.

93, Nehru Place,

New Delhi 19

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(e) M/s EM Electronics Pvt. Ltd.

158 I I T main industrial Town.

Rajaji Nagar.

Banglore 560004

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(2) Address of raw material / components suppliers

(a) M/s H.B. chugh & co.

14 A/31

W.E. area Karol Bagh.

New Delhi.

(b) M/s Semiconductor Complex

(A govt. of India Enterprise)

(Marketing division)

C 5/18 safdarjung Dev Area

New Delhi 28

(c) M/s sargodha Radio Co.

C-134 , Naraina ind. Area

New Delhi -28

(d) M/s Chawla Plastics Works (p) Ltd.

A4, Mayapuri phase -1

New Delhi.
30
(e) M/s Bhola Plastic Industries

B 34/5 G.T. Karnal Road,

Industrial area

Delhi -33

(f) M/s Kanwar S.M. Co.

Naraina ind Area phase -1

Delhi -28

(g) M/s Cina Elecxtronics.

1 A/218 Ashok vihar

Phase 1

Delhi 52

(h) M/s Copwud Arts.

118-120 , satguru Nanak Ind. Estate

Western Express highway,

Goregaon (East)

Bombay 63
31
(i) M/s Boble Electronics,

354, lajpat Rai Market,

Delhi 6

32
BIBLIOGRAPHY
(1) Dynamic of Entrepreneurial Development & Management

- Vasant Desai

(2) Marketing Management

- Philip Kotler

(3) SSI Journals

- SSI Unit

(4) Other materials.

33
A
Product Project Report
ON

Prepared By: PANSURIYA ANIL R.

Std.: T.Y. B.B.A

Academic Year: 2006-07

Roll No.:
Seat No.:

Guided By:
Lr. Nirav S. Joshi

College:
Geetanjali College of Computer
Science & Commerce (BBA)

Submitted to:
Saurashtra University

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