PROJECT REPORT

PETROL / DIESEL RETAIL OUTLET DEALERSHIP AT SANGAMPALAYAM,

POLLACHI, COIMBATORE DISTRICT

Name of the Applicant : Mr.R Santhosh

Location : Sangampalayam

District :Coimbatore
 ABOUT THE DISTRICT – COIMBATORE

Coimbatore is the third largest city in Tamilnadu, with a population of

more than 15 lakhs. There are more than 30,000 tiny small, medium and large
industries and textile mills. The city is known for its entrepreneurship of its
residents. The climate is comfortable round the year.

The rick black soil of the region has contributed to Coimbatore's

flourishing agriculture industry and, it is in fact, the successful growth of cotton
has served as a foundation for the establishment of its famous textile industry.

There are more than 25,000 small, medium, large scale industries and
textile mills. Coimbatore is also famous for the manufacture of motor pump sets
and varied engineering goods, due to which it has earned the title “Detroit of the
South". The Development of Hydro electricity from the Pykara Falls in the
1930s led to a cotton boom in Coimbatore. The result has been a strong
economy and a reputation as one of the greatest industrial cities in South India.

Area 254 Sq. kms

42,71,856
Population (Coimbaotre
District)
411 Meters, The textile industry and the
Altitude above mean sea IT industry which is fast
level growing is the major factor
Literacy 73% promoting the district
Tamil, Telugu,
Malayalam,
Language
Hindi and
English

Tourist spots through sangampalayam

Topslip- open tiger sanctuary

Aliyar – childrens park,dam, monkeyfalls

Valparai- tea estates, balaji temple

Kerala tourism- guruvayur,atharapalli falls

Anamalai -masaniammman temple

COIMBATORE DISTRICT MAP
POLLACHI TALUK MAP
 ABOUT THE LOCATION – SANGAMPALAYAM

Sangampalayam , is a Village Panchayat and a part of Pollachi taluk located in

the Anamalai - Udumalai road which is 15 km away from Pollachi. There are more than
20 coir industries situated within 10 km radius from Sangampalayam. Each industry
owns a minimum of 3 tractors and 2 Lorries for transporting husk and pith waste. There
are about 9000 Two Wheelers, 150 Lorries, 300 Tractors, and 400 Cars. There are
about 5 educational institutions around 5 km radius and each own a minimum of 4
vechicles (van 0r bus) for transportation. Most of the vehicles which go to Kerala pass
through Sangampalayam.

Tourist spots around this place favor the movement of fuel during week ends and
it approximately increases 30% of the week day sale. Masaniamman temple,
Palatrangarai Anjaneyar temple, Valparai Balaji temple, Guruvayur temple,
Meenkulathu Bagavathi Amman temple are the most visited temples around this place
which also helps in the sales rate.

There are more than 10 villages around Sangampalayam within 12 km radius

where people mostly depend on agriculture and agro based industries. Around 500
tractors are used for agriculture purpose. Even 200 minidoor vehicles are involved in
daily activities.
 DETAILED PLANS TO RUN THE RETAIL OUTLET

1. The location Sangampalayam is on the road connecting Udumalai and

Anamalai. As It also connects to Kerala the vehicular traffic movement is
expected to increase day by day.
2.
3. There are more than 20 coir industries located nearby. Also around 500 coir
industries in and around Pollachi gets husk (raw material) supply in lorries from
the villages nearby Sangampalayam. Around 250 Lorries are involved in this
activity. The finished fiber product is carried in Lorries to Kerala mostly through
Sangampalayam. By canvassing these Lorries, I can easily achieve the target
sales volume.

4. The traffic movement from the tea estates (Valparai) and Kochi harbor offers
good potential to the location at Sangampalyam. The vehicular traffic has
emanating from Valparai hills has a natural halting point at N.M.Sungam which
is ½ km away from Sangampalayam.

5. The aawin dairy located in Shanmugapuram which is 1 km away from

Sangampalayam also promotes the fuel trade.

6. Further the agricultural produce i.e. coconut, groundnut, onion, rice and paddy
movement to Pollachi, Udumalai, Anamalai, Kerala and Coimbatore also offers
good potential for Diesel trade. The applicant also being an agriculturist and
industrialist has good contacts with the locals and can bring in sales volumes.

7. By way of sharing profit, I can improve the business. Then and there I will
announce and give compliments to the customers.
 PROPOSED WAYS TO ENHANCE THE SALES VOLUME

My proposals for employees at the Retail Outlet are:

1. Selecting educationally qualified girls for Sales Counter.

2. Giving Upgradation of knowledge and techniques then and there.

3. Giving them good salary.

4. Providing free Meals during working hours.

5. Giving them Sales Incentive on daily basis based on Sales promotion.

6. Giving them medical check up monthly.

7. Offering them medical insurance.

8. Providing land near the bunk for construction of house and provide finance.

9. Promoting the agro based products sales, stationary items and a mini
departmental store.

10. At the end of the year 25% of the profit will be regarded for the share of
employees.
 PROPOSED SALES AND MARKETING SERVICE TO THE CUSTOMERS

The proposed Retail Outlet is located in Anamalai – Udumalai road. I plan to provide
the following facilities for the customers.

1. Providing Rest Room, Toilet and Bath facility for long journey drivers.

2. Providing Free Air.

3. Providing Free Radiator Water.

4. Providing Free Drinking Water.

5. Providing STD/ISD Local and Cell phone facility at low cost.

6. Keeping the bunk with Garden and Clean Housekeeping.

7. Starting a small workshop, water wash near by and providing petty repairs.

8. Providing fuel card facilities.

RETURN ON INVESTMENT for Retail Outlet.

Monthly Sales (Qty)
A1. H.S.D (K.L) 250.000
A2. M.S. (K.L.) 30.000
A3. Lubes (K.L.) 500.000
A4. Sales Value of Waste cloth,Dist water etc(Rs.) 3000.00
 (A1*36+A2*43) Licence Fee Recovery -10290.00
(A1*512+A2*857) Dealer Commission HSD & MS 189310.00
(A3*6) Margin on Lubes 5000.00
(A4*25%) Margin on Other items 750.00
B.GROSS PROFIT 184770.00
EXPENSES
Salaries & Bonus 60000.00
Freight & Handling
Loyalty Expenses( Fleet Card) 1000.00
Electricity Charges 20000.00
Bank Charges 600.00
Computer & Printer Maintenance
Generator & Vechicles Maintanence 5000.00
Insurance Charges 3000.00
Postage & Telegrams 250.00
Printing & Stationery 1000.00
Repairs & Maintenance 1000.00
Sales Promotional Expenses
Staff Incentive
Staff Welfare & Refreshment Expenses
Telephone Charges 2500.00
Travelling & Conveyance
Evaporation Loss (M.S.) 5000.00
Sundry Expenses 1000.00
C. Total Expenses 100350.00
D. NET PROFIT (B-C) 84420.00
AVG. STOCK 1751000.00
+ AVG. CREDIT 1000000.00
+ ASSETS 1000000.00
E. NET INVESTMENT 3751000.00
F.RETURN ON INVESTMENT 2.25
(D divided by E)
G. BANK BORROWINGS 1000000.00
H. MARKET BORROWINGS
I. OWN FAMILY FUNDS 2751000.00
J. COST OF BORROWINGS (Interest) 12500.00
K. PROFIT AFTER INTEREST 71920.00
L. RETURN ON OWN INVESTMENT per month 2.61%
(K divided by I)
RETURN ON OWN INVESTMENT per Annum 31%
 PROFILE & EXPERIENCE OF THE APPLICANT

1) The applicant Mr.R Santhosh is a graduate in Mechanical Engineering

passed out in the year 2002 from Bharathiar University. He also
completed his post graduation in M B A in U.K in the year 2004.

2) Mr.R Santhosh after completing his graduation worked as a supervisor in

Jet Petrol in Coventry-U K for a year and a half and returned to his home
country in August 2006

3) After returning to his home country he also worked as a supervisor in

Bharat Petroleum Corporation at valandhayamaram from december
2006 to january 2008. He was an active participant in improving the
sales of the RO and was appreciated for his active participation.

4) Then he took the charge of the coir industry which was owned by his
father (ALIYAR FIBRES) and started one more unit ULTIMATE COCOS
with modernization. He also introduced curling in the same industry and
was involving lots of people who are skilled and non-skilled. He was also
responsible for the improvement in the socio-status of the people who
work in his industry. Then he also started the machinery manufacturing
for coir industry (MADHUMATHI ENGINEERING WORKS) after gaining
experience from all the above.

5) The applicant Mr.R Santhosh is involved in many social activities and in

the welfare of public development.

6) The applicant Mr.R Santhosh also involves in agricultural activities in the

land owned by his father Mr D Ramakrishnan