ENTREPRENEURSHI

P PRESENTATION
TYBMS-B
 Group members:
 NITESH POOJARY 7812
 RACHANA RAJE 7817
 ANURADHA RANGALI 7820
 RAKESH SONAWLE 7841
 AKSHADA WAGH 7854
 STAGES OF PRODUCT
 Idea generation-
PLANNING
Idea generation-
 objective was product innovation
 Mainly focused on eco-friendly products
 Focused on conservation of resources
 Research & screening
 Short listed ideas solar watches, mobile phones with
solar charger, mobile phone with eco-friendly cover,
retail chain grey water reuse etc..
 Evaluation
 Evaluation of ideas done on feasibility point of view
 Final idea : Grey water reuse
 PRODUCT DEVELOPMENT
 Initially we thought of using domestic
waste water from the kitchen sink for the
purpose of gardening.
 Later we developed the idea of using
waste water from the washing machines.
 Combined the idea of water conservation
and reuse.
SANITARY WARE SECTOR
 Market size for sanitary ware sector in India
approximately Rs. 2500 crore.
Sanitary ware sector

Organized sector unorganized sector

(55%) (45%)
Growing @ 20% growing@ 8-9%
 Population covered by sanitation
facilities
( in millions)
1985 1990 1997

Rural 0.7 2.4 6.4

Urban 28.4 45.9 49.3

 Sanitary ware demand
 Sanitary ware Industries in India for the last 6-
7 years have shown very dramatic growth with
major players doubling their production
capacity. The Companies have also upgraded
their manufacturing system

 The demand for high value Sanitary ware in

India is growing very fast.
 to educate the customers in India to go for
sanitarywares, companies have adopted a very
aggressive advertisement campaign

 The demand for Sanitarywares in India is

growing @ 15% -17% every year.

 The sanitary ware industry is divided in two

sectors. The organized sector consisting of 5
companies & unorganized sector with many
players.
 The organized sectors produce fully vitrified
sanitarywares, using latest technology and best of
Ceramic Raw Materials available in India.
 The unorganized sectors have adopted local Indian
technology to manufacture the basic sanitaryware
products.
 Unorganized sanitaryware manufacturer comes
under small sectors and hence enjoy the benefit of
Nil Excise Duty and Sales Tax and hence they sell
their products in the domestic market
approximately 70% cheaper than the organized
sector products.
 Note: Every year the below demand is
expected to grow by 15 to 17%.

North South East West total

18000 32000 15000 15000 80000
units units units units units
 Current Market Size
 The Indian Sanitary ware market is worth
around 500 crores for the year 2001-02
with an annual market size of around 8
million pieces. This represents a yearly
growth rate of about 3-4%.
 Composition of Sanitary ware
sector
 Wash basins & sinks
 Bath tubs
 Commodes , cisterns
 Bathroom accessories
Outlook for Sanitary ware Industry
in India

 The sanitation penetration has more than

trebled from 8% in 1982 to 18% in 1994
and to 29% in 1999.
 SANITARYWARE INDUSTRY
STATISTICS:
1. World production: 187 million pieces
2. India's Share: 6.7 Million pieces
3. World ranking (in not in the Top 10
production): (India A/c for
3.30%)
4. Global Industry Growth 5-7%
Rate:
5. Growth Rate (India 10%
Domestic Market):
 Cont…….
6. Organized sector:
% Share of Production: 43%
Production Capacity:   103300 M.T.pa
Actual Production:   95000 M.T. per
annum
7. Unorganized sector:
% Share of Production: 57%
  Production Capacity:   136700 M.T. pa
Actual Production:   120000 M.T. per
annum
OUR NEW VENTURE
 CONCEPT

 Reuse of grey water from washing

machines into toilet flush.
 Saves approximately 20-30 liters of clean
water used otherwise.
 Externally connecting the washing machine
drainage pipe to the ecolect tank & to flush
tank..
 Storage of grey water in tanks of capacity 20-
30 liters for purpose of flushing.
 FACTS
 35% water of daily consumption wasted
in toilet flushing
 40% through washing machine
 BMC has declared installation of meter
for water consumption,

. 
ADVANTAGES OF REUSING GREY
WATER

 by reusing grey water, we can save about 1/3

of household water consumption;
 about 1/3 of water bill
 it reduces waste water output by about 1/3;
 we can actively contribute to improving our
environment
PROJECT
REPORT
INTRODUCTION:

 Market size for sanitary ware sector in India

approximately Rs. 250 crore for around 8
million pieces
 ‘The total size of the washing machine market
in India is approx. 1.3 million units per
annum’-Financial daily
 Huge potential in this sector .
 LEGAL PROCEDURES
 We have got our company

‘RANAR Ltd ‘ registered under

the Companies Act 1956.
 Obtained the license for selling
our product.
PRODUCT DETAILS
Ecolect
Connectin tank 20- 30
ECO-
g pipes LECT ltr capacity

Grey water
outlet
 COLOURS AND SIZES

 30 LITRE CAPACITY
 20 LITRE CAPACITY
 INPUTS
 Connecting pipes of fiber- radius 3 cm.
 Rectangular tanks– of non-breakable &
sturdy fiber.
 Filter nets
 Motor of ½ Hp to pull the water in the
Eco-lect tank
 PROJECT DESCRIPTION
Location :
STATUS LOCATIO AREA COST (Rs)
N
WAREHOUSE OWNED BHIWANDI 5000sq ft @ 600/sq ft
=30,00,000
OFFICES RENTED KALYAN 450 sq ft 15,000

RENTED GHATKOPAR 450 sq ft 20,000

RENTED DADAR 450 sq ft 40,000

RENTED THANE 700 sq ft 25,000

 STAFF
in office:
MANAGER

SUPERVISOR SUPERVISOR

10 EMPLOYEES 10 EMPLOYEES

•IN WAREHOUSE
10-12 employees inclusive of supervisor,
security, workers etc..
 TRANSPORTATION:
OFFICE-
SUPPLIER THANE

OFFICE-
SUPPLIER WARE KALYAN
HOUSE-
OFFICE-
BHIWANDI GHATKOPAR
SUPPLIER

OFFICE-
SUPPLIER DADAR
 Process
 Customers would come to the office , view
the catalogue and place the order.
 Make the full cash payment in one
installment.
 The delivery of the product done in 1-2 days.
 Installation and instruction of usage given by
our staff
 After sales services.
 Mode of transaction
 Try to purchase Raw materials on credit
basis
 Make sales on cash basis.
 Procure the stock in bulk thus benefit
from economies of scale.
 Prefer batch production to avoid
inventories.
 Inventory
 All the offices would stock up the inventory of
approximate 20 eco-lects .
 The stock from the warehouse will be
procured in batches.
 To meet the demand for bigger contracts the
stock would be supplied directly from the
warehouse to the users.
 FEASIBILITY STUDY

 TECHNICAL FEASIBILITY

 FINANCIAL FEASIBILITY

 MARKETING FEASIBILITY
TECHNICAL FEASIBILITY
TECHNICAL FEASIBILITY
Ecolet tank
Connectin ECO- 20- 30 ltr
LECT capacity
g pipes

Grey water
outlet
 FINANCIAL ANALYSIS:
 INITIAL PROJECT COST

Particulars Amount (Rs.)

Land & Building (Warehouse – 50,00,000

5000 sq.ft.)
Furniture 5,00,000
Offices 11,00,000
Preliminary Expenses 50,00,000

Total 1,16,00,000
 PROJECT DESCRIPTION
Location :
STATUS LOCATIO AREA COST (Rs)
N
WAREHOUSE OWNED BHIWANDI 5000sq ft @ 600/sq ft
=30,00,000
OFFICES RENTED KALYAN 450 sq ft 15,000
RENTED GHATKOPAR 450 sq ft 20,000

RENTED DADAR 450 sq ft 40,000

RENTED THANE 700 sq ft 25,000

 SOURCES OF FINANCE

Particulars Amt. (Rs.)

Capital (50% ) 58,00,000

Bank Term Loan (50%) 58,00,000

Total 1,16,00,000
 Sources of Finance

 Internal ( 50%)

 External (50%)
 Bank term loan
(IDBI, etc)
 Cost of Production (Rs.)
 Tank 600
 Motor (1/2 HP) 1000
 Pipes & fittings 100

 Total Cost of Production 1700

 Fixed and variable Cost ( in Rs lakhs)
 Variable Cost
 Fixed Cost
 Salary 7.25
 Land 30  Overheads
 Building 20  Office 0.30
 Furniture 05  Warehouse 0.10
S & D 0.25 / 0.50
 Offices 11
 Cost of
production 10.20 / 20.40
TOTAL 66  Promotion 2.5
 Interest 1.56

@ 12.5%
 TOTAL 22.16 / 32.61
 Working Capital (Rs.)
 Current Assets
 Stock 36,00,000
 Less Current Liabilities:
 Creditors 20,40,000
 Labor overheads 50,000
 S & D overheads 50,000
 Factory overheads 10,000

TOTAL W.Capital 14,50,000

 BEP Analysis
BEP = 66,00,000 x 100
5,00,000
= 1320 %

 Thus BEP will be achieved when the sales

revenue reaches 1320% of the fixed cost
i.e. 8,71,20,000 Rs.
 BEP CALCULATION

 Contribution of 5 lakhs achieved

from 5th month sales onwards.
 In this way, the BEP will be achieved
in the 31st month on the sale of the
33,634th unit of the product.
 Marketing feasibility
 Ease of distribution

 Average order

 Freedom from numerous variations

 Freedom from seasonal fluctuation

 TARGET CUSTOMERS:
 All washing machine users.
 Specially those users who face shortage
of water supply.
 Builders and architects.
 PLACE
 HEAD OFFICE: Thane

 EMAIL: info@ecolect.com

 WEBSITE: www.ecolect.com
 Place
STATUS LOCATIO AREA
N
WAREHOUSE OWNED BHIWANDI 5000sq ft

OFFICES RENTED KALYAN 450 sq ft

RENTED GHATKOPAR 450 sq ft

RENTED DADAR 450 sq ft

RENTED THANE 700 sq ft

 DISTRIBUTION
OFFICE-
SUPPLIER THANE

OFFICE-
SUPPLIER WARE KALYAN
HOUSE-
OFFICE-
BHIWANDI GHATKOPAR
SUPPLIER

OFFICE-
SUPPLIER DADAR
 MEDIAS USED FOR
MARKETING
 Television commercial
 Print advertisement in property plus-
supplement of Times of India, interior
designing magazines
 Direct marketing to architects & builders
 hoardings
 Website ( www.ecolect.com)
PRICING STRATEGY
 After sales service of ECOLECT
 1 year warranty for entire product
maintenance.
 6 month guarantee for motor
only.*Conditions Apply.
 SWOT ANALYSIS
•STRENGTHS
•Concept of conservation of
water and in turn saves
money
•Pioneer in this industry
•BMC water supply
regulation
OPPORTUNITIES:
•Expansion outside Mumbai
•Tie-ups with washing
machine manufacturers
WEAKNESS
•Target customer only restricted
to washing machine user
•Initial reluctance of consumer
towards grey water
•Space constraint for Eco-lect
tank
THREATS:
In future other washing
machine company may adopt
our techniques
 Future prospects
 Gradually expand our business in Mumbai , then
Maharashtra & across India.
 Go for backward integration, start manufacturing
the raw materials.
 Apply for ISO Certification.
 Product line expansion in order to reuse Kitchen
water.
 Tie ups with leading washing machine companies.
CONCLUSION