INITIAL BUSINESS PLAN FORMAT

1. GENERAL INFORMATION

1.1 Name of the Entrepreneur: AZAD GROUP

1.2 Proposed Project: CHILLI POWDER MANUFACTURING UNIT

1.3 Major Produce/Services: CHILLI POWDER

1.4 Proposed Location: MORADABAD

1.5 Type of Organisation: PARTNERSHIP

2. ENTREPRENEUR PROFILE:

Educational Qualification:

Technical Skills: (If any)

Work Experience: (if any)

 2. TYPE OF PRODUCT/SERVICES:

Type of the Project:

3.2 Product / Services description (Type , Quality & uses etc)

3.3 Major Consumers :

MARKET POTENTIAL
Present Demand and Supply of the Product

Competition

Target Clients/selected Market Area

Marketing Strategy (USP)

MANUFACTURING PROCESS

4.1 Technical Know-how Availability

4.2 Step-by-Step Description of the Manufacturing Process from Raw Material

to Finished Goods [Attach Process Flow Chart]
PRODUCTION SCHEDULE

5.1 No. of Working Days per Annum -300

5.2 No. of Working Shifts (8hrs) per Day -1
5.3 Installed Capacity (annual) -100%
5.4 Utilized Capacity (%): -
I - Year -60%
II - Year -70%
III - Year -80%

4. DETAILS OF THE PROPOSED PROJECT:

(A) LAND AND BUILDING

Sr.No. Particular Area Required Total Value Remarks

1. Land

2. Office Building

3. Industrial Shed
Total:

(B) MACHINERIES / EQUIPMENTS

Sr. Description Nos. Rate (Rs.) Total
No Required Value
(Rs.)

Machinery 1 75000 75000

Total: 75000

(C) MISC. FIXED ASSETS

Sr. Particulars Nos. Rate Total
No Required (Rs.) Value
(Rs.)
Transit insurance 1 1% 750
Transportation cost of machinery and plant 1 1000 1000
Loading charge of machinery 1 500 500
Taxes 1 8% 6000

Total: 8250
(D) PRELIMINARY AND PRE-OPERATIVE EXPENSES

Sr. No Particulars Amount (Rs.)

Establishment Expenses (foundation) 2000.00

Start-Up Expenses (Erection & commissioning 7500.00
charges 10%)
House Security 50000.00
Deposit per HP power 15000.00

Misc. Expenses Total 74500.00

(E) SALES REVENUE (ANNUAL)

S.NO. Items(s) Quantity Rate per Unit (Rs) Sales
Sold/Year Realisation
(Rs)
1. Chilli Powder 30000kg 75 2250000.00

Total 2250000.00

(F) RAW MATERIAL (MONTHLY REQUIREMENT)

Sr. No Items(s) Quantity Rate (Rs) Total Value(Rs)

1 Dried Chilies 2750kg 30 82500.00

2 Packing 27500 bags 0.10 per 10 bags 2750.00
Material(inner
bags)
3 Packing 27500 bags 0.15 per 10 bags 4125.00
Material(outer
bags)

TOTAL 89375.00
(G) UTILITIES - Monthly
Sr. Particulars Monthly Expenditure (Rs) Remarks
No
1. Power/Electricity

2. Water

3. Coal/Oil/Steam

4. Any other item(utility

cost of Rs 4/- per kg) 11000

Total 11000

(H) MAN POWER (Salaries/Wages)- Monthly

Sr. Particulars No. Wages/Salaries per

No Month (Rs.)
1. Skilled 2 2000

2. Semi Skilled

3. Unskilled

4. Office Staff 1 2000

Total 4000

(I) REPAIRS AND MAINTENANCE- Monthly

Sr. Particulars Amount (Rs)

No

(J) SELLING AND DISTRIBUTION EXPENSES - Monthly

Sr. Particulars Amount (Rs) Remarks

No
1. Publicity Expenses
2. Traveling(Rs.500 per trip for 400 kg) 3500.00
3. Freight
4. Commission(12% on sales) 22500.00
5. Misc.(5% on sales) 9375.00
6.
Total
35375.00
(K) ADMINISTRATIVE EXPENSES - Monthly

Sr. No Particulars Amount(Rs)

1. Stationery & Printing
2. Post/Telephone/Fax
3. Guest Entertainment Expenses
4. Misc.
5. House Rent 2000.00
6. Grinding(Rs. 1/- per kg) 2750.00
7. Fractionation(Rs. 3/- per kg) 8250.00

Total 13000.00

(L) INTEREST – Annual (12%)

Loan Amount (Rs) Interest (Rs) Installment (Rs) Balance (Rs)

232875.00 27945.00
Total

(M) DEPRECIATION

Sr. Type of Asset Cost of Asset Depreciation Amount

No. (WDV)

1 Buildings -- 10 % --

2 Plant & 83250.00 10 % 8325.00

Machinery

3 Moulds and
Equipments

4
5
Total 8325.00
5. WORKING CAPITAL (one month) / One Cycle

Sr. Item Rs.

No.

1. Raw-Material 89375.00
2. Salary/Labour 4000.00
3. Administrative expenses 13000.00
4. Repairs and Maintenance exp. ---
5. Selling and distribution expenses 35375.00
6. Utilities 11000.00

TOTAL
152750.00

6. TOTAL COST OF THE PROJECT

Sr. No Particulars Total Value (Rs.)

1. Fixed Capital(machinery + misc. fixed assets) 83250.00

2. Working capital ( One Cycle ) 152750.00

3. Preliminary & Pre-operative Expenses 74500.00

4. Cost escalation & Contingencies (10 %) ---

Total 310500.00

7. MEANS OF FINANCE

Sr. No Particulars Percentage of Amount (Rs.)

loan
1. Own Investment 25% 77625.00

2. Term Loan 75% 232875.00

Total: 310500.00
8. PROFITABILITY PROJECTIONS

Sr. Particulars Amount (Rs.)

No.
1 Annual Sale Realisation 2250000.00

2 Cost of Manufacturing/ Servicing

A Annual Working capital 1833000.00

B Annual Interest on loan 27945.00

C Annual Depreciation 8325.00
Total 1869270.00

3 Gross Profit/Loss (1 - 2) 380730.00

9. BREAK EVEN POINT

Break Even Point = Fixed Cost x 100

Fixed Cost + Profit
Fixed Cost = (1833000/2 + 27945.00 + 8325) = 952770.00
Profit = 380730.00

Break Even Point = 71.44