Final Ecolect

8/8/2019 Final Ecolect

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ENTREPRENEURSHIPENTREPRENEURSHIP

PRESENTATIONPRESENTATION

TYBMSTYBMS--BB


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Group members:Group members:

NITESH POOJARYNITESH POOJARY 78127812

RACHANA RAJERACHANA RAJE 78177817

ANURADHA RANGALIANURADHA RANGALI 78207820

RAKESH SONAWLERAKESH SONAWLE 78417841

AKSHADA WAGHAKSHADA WAGH 78547854


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STAGESOF PRODUCTPLANNINGSTAGESOF PRODUCTPLANNING

Idea generationIdea generation--

objective was product innovationobjective was product innovation

Mainly focusedon ecoMainly focusedon eco--friendly productsfriendly products

Focusedon conservation of resourcesFocusedon conservation of resources Research & screeningResearch & screening

Short listedideas solar watches, mobile phones with solarShort listedideas solar watches, mobile phones with solarcharger, mobile phone with ecocharger, mobile phone with eco--friendly cover, retail chainfriendly cover, retail chain

grey water reusegrey water reuseetc..etc.. EvaluationEvaluation

Evaluation of ideasdone on feasibility point of viewEvaluation of ideasdone on feasibility point of view

Final idea : Grey water reuseFinal idea : Grey water reuse


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PRODUCT DEVELOPMENTPRODUCT DEVELOPMENT

Initially we thought of using domesticInitially we thought of using domestic

waste water from the kitchen sink for thewaste water from the kitchen sink for the

purpose of gardening.purpose of gardening. Later we developed the idea of usingLater we developed the idea of using

waste water from the washing machines.waste water from the washing machines.

Combined the idea of water conservationCombined the idea of water conservation

and reuse.and reuse.


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SANITARYWARESECTORSANITARYWARESECTOR

Market size for sanitary ware sector inIndiaMarket size for sanitary ware sector inIndia

approximately Rs. 2500 crore.approximately Rs. 2500 crore.

Sanitary ware sectorSanitary ware sector

OrganizedsectorOrganizedsector unorganize dsectorunorganizedsector

(55%)(55%) (45%) (45%)Growing @ 20%Growing @ 20% growing@ 8 growing@ 8--9%9%


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Population coveredby sanitation facilitiesPopulation coveredby sanitation facilities

( in millions)( in millions)19851985 19901990 19971997

RuralRural 0.70.7 2.42.4 6.4 6.4

UrbanUrban 28.428.4 45.945.9 49.349.3


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Sanitary waredemandSanitary waredemand

Sanitary wareIndustries inIndia for the last 6Sanitary wareIndustries inIndia for the last 6--77

years have shown verydramatic growth with majoryears have shown verydramatic growth with major

playersdoubling their production capacity. Theplayersdoubling their production capacity. The

Companies have also upgradedtheir manufacturingCompanies have also upgradedtheir manufacturing

systemsystem

Thedemandfor high valueSanitary ware inIndia isThedemandfor high valueSanitary ware inIndia is

growing very fast.growing very fast.


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to educate the customers inIndia to go forto educate the customers inIndia to go for

sanitarywares, companies have adopteda verysanitarywares, companies have adopteda very

aggressive advertisement campaignaggressive advertisement campaign

ThedemandforSanitarywares inIndia is growing @ThedemandforSanitarywares inIndia is growing @

15%15% --17% every year.17% every year.

The sanitary ware industry isdividedin two sectors.The sanitary ware industry isdividedin two sectors.

The organizedsector consisting of 5 companies &The organizedsector consisting of 5 companies &

unorganizedsector with many players.unorganizedsector with many players.


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The organizedsectors produce fully vitrifiedThe organizedsectors produce fully vitrified

sanitarywares, using latest technology andbest ofsanitarywares, using latest technology andbest of

Ceramic RawMaterials available inIndia.Ceramic RawMaterials available inIndia.

The unorganizedsectors have adoptedlocalIndianThe unorganizedsectors have adoptedlocalIndian

technology to manufacture the basic sanitarywaretechnology to manufacture the basic sanitaryware

products.products. Unorganizedsanitaryware manufacturer comes underUnorganizedsanitaryware manufacturer comes under

small sectors andhence enjoy the benefit ofNil Excisesmall sectors andhence enjoy the benefit ofNil Excise

Duty andSalesTax andhence they sell their products inDuty andSalesTax andhence they sell their products inthedomestic market approximately70% cheaper than thethedomestic market approximately70% cheaper than the

organizedsector products.organizedsector products.


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Note: Every year the belowdemandisNote: Every year the belowdemandis

expectedto grow by 15 to 17%.expectedto grow by 15 to 17%.

NorthNorth SouthSouth EastEast WestWest total total

1800018000

unitsunits

3200032000

unitsunits

1500015000

unitsunits

1500015000

unitsunits

8000080000

unitsunits


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CurrentMarketSizeCurrentMarketSize

TheIndianSanitary ware market is worthTheIndianSanitary ware market is worth

around500 crores for the year 2001around500 crores for the year 2001--02 with an02 with an

annual market size of around8 million pieces.annual market size of around8 million pieces.This represents a yearly growth rate of about 3This represents a yearly growth rate of about 3--

4%.4%.


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Composition ofSanitary ware sectorComposition ofSanitary ware sector

Wash basins & sinksWash basins & sinks

Bath tubsBath tubs

Commodes , cisternsCommodes , cisterns

Bathroom accessoriesBathroom accessories


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Outlook forSanitary wareIndustry inIndiaOutlook forSanitary wareIndustry inIndia

The sanitation penetration has more thanThe sanitation penetration has more than

trebledfrom 8% in 1982 to 18% in 1994 andtotrebledfrom 8% in 1982 to 18% in 1994 andto29% in 1999.29% in 1999.


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SANITARYWAREINDUSTRYSANITARYWAREINDUSTRY

STATISTICS:STATISTICS:

1.1. Worl dproduction:Worldproduction: 18 7million pieces187million pieces

2.2. India'sShare:India'sShare: 6.7Million pieces6.7Million pieces

3.3. Worl dranking (in production):Worldranking (in production): not in the Top 10not in theTop 10(IndiaA/c for 3.30%)(IndiaA/c for 3.30%)

4.4. Global Industry Growth Rate:GlobalIndustry Growth Rate: 5 5--7%7%

5.5. Growth Rate ( India DomesticGrowth Rate (India Domestic

Market):Market):

10%10%


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6.6. Organize dsector:Organizedsector:

% Share of Production:% Share of Production:

Production Capacity:Production Capacity:

Actual Production:Actual Production:

43%43%

103300M.T.pa103300M.T.pa

95000M.T. per annum95000M.T. per annum

7.7. Unorganize dsector:Unorganizedsector:

% Share of Production:% Share of Production:Production Capacity:Production Capacity:

Actual Production:Actual Production:

57%57%136700M.T. pa136700M.T. pa

120000M.T. per120000M.T. per

annumannum

Cont.Cont.


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OUR NEW VENTUREOUR NEW VENTURE


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CONCEPTCONCEPT

Reuse of grey water from washingReuse of grey water from washing

machines into toilet flushmachines into toilet flush.. Saves approximately 20Saves approximately 20--30 liters of clean water30 liters of clean water

usedotherwise.usedotherwise.

Externally connecting the washing machineExternally connecting the washing machinedrainage pipe to the ecolect tank & to flush tank..drainage pipe to the ecolect tank & to flush tank..

Storage of grey water in tanks of capacity 20Storage of grey water in tanks of capacity 20--3030

liters for purpose of flushing.liters for purpose of flushing.


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FACTSFACTS

35% water ofdaily consumption wastedin35% water ofdaily consumption wastedintoilet flushingtoilet flushing

40% through washing machine40% through washing machine

BMC hasdeclaredinstallation of meter forBMC hasdeclaredinstallation of meter forwater consumption,water consumption,

..


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ADVANTAGES OF REUSING GREYADVANTAGES OF REUSING GREY

WATERWATER

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

of household water consumption;of household water consumption;

about 1/3 of water billabout 1/3 of water bill

it reduces waste water output by about 1/3;it reduces waste water output by about 1/3;

we can actively contribute to improving ourwe can actively contribute to improving our

environmentenvironment


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PROJECTPROJECTREPORTREPORT


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INTRODUCTION:INTRODUCTION:

Market size for sanitary ware sector inIndiaMarket size for sanitary ware sector inIndia

approximately Rs. 250 crore for around8 millionapproximately Rs. 250 crore for around8 million

piecespieces

The total size of the washing machine market inThe total size of the washing machine market in

India is approx. 1.3 million units per annumIndia is approx. 1.3 million units per annum--

FinancialdailyFinancialdaily Huge potential in this sectorHuge potential in this sector..


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LEGAL PROCEDURESLEGAL PROCEDURES

We have got our companyWe have got our company

RANAR Ltd registeredunder theRANAR Ltd registeredunder the

CompaniesAct 1956.CompaniesAct 1956.

Obtainedthe license for selling ourObtainedthe license for selling our

product.product.


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PRODUCTDETAILSPRODUCTDETAILS

ECO-LECT

Ecolect tank

20-30 ltrcapacity

Connecting

pipes

Grey water

outlet


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COLOURSANDSIZESCOLOURSANDSIZES

30 LITRE CAPACITY30 LITRE CAPACITY

20 LITRE CAPACITY20 LITRE CAPACITY


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INPUTSINPUTS

Connecting pipes of fiberConnecting pipes of fiber--radius 3 cm.radius 3 cm.

Rectangular tanksRectangular tanks of nonof non--breakable &breakable &

sturdy fiber.sturdy fiber.

Filter netsFilter nets

Motor of Hp to pull the water in theMotor of Hp to pull the water in theEcoEco--lect tanklect tank


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PROJECTDESCRIPTIONPROJECTDESCRIPTION

Location :Location :STATUSSTATUS LOCATIOLOCATIONN

AREAAREA COST(Rs)COST(Rs)

WAREHOUSEWAREHOUSE OWNEDOWNED BHIWANDIBHIWANDI 5000sq ft5000sq ft @ 600/sq ft@ 600/sq ft

=30,00,000=30,00,000OFFICESOFFICES RENTEDRENTED KALYANKALYAN 450 sq ft450 sq ft 15,00015,000

RENTEDRENTED GHATKOPAR GHATKOPAR 450 sq ft450 sq ft 20,00020,000

RENTEDRENTED DADAR DADAR 450 sq ft450 sq ft 40,00040,000

RENTEDRENTED THANETHANE 700 sq ft700 sq ft 25,00025,000


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STAFFSTAFF

IN OFFICE:IN OFFICE:MANAGER

SUPERVISOR SUPERVISOR

10 EMPLOYEES 10 EMPLOYEES

TIN WAREHOUSE

10-12 employees inclusive of supervisor,

security, workers etc..


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TRANSPORTATION:TRANSPORTATION:

SUPPLIER

SUPPLIER

SUPPLIER

SUPPLIER

WARE

HOUSE-

BHIWANDI

OFFICE-

THANE

OFFICE-KALYAN

OFFICE-

GHATKOPAR

OFFICE-

DADAR


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PROCESSPROCESS

Customers wouldcome to the office , view theCustomers wouldcome to the office , view thecatalogue andplace the order.catalogue andplace the order.

Make the full cash payment in one installment.Make the full cash payment in one installment.

Thedelivery of the productdone in 1Thedelivery of the productdone in 1--2days.2days.

Installation andinstruction of usage given byInstallation andinstruction of usage given by

our staffour staffAfter sales services.After sales services.


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MODE OF TRANSACTIONMODE OF TRANSACTION

Try to purchase Raw materials on credit basisTry to purchase Raw materials on credit basis

Make sales on cash basis.Make sales on cash basis.

Procure the stock in bulk thus benefit fromProcure the stock in bulk thus benefit fromeconomies of scale.economies of scale.

Prefer batch production to avoidinventories.Prefer batch production to avoidinventories.


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INVENTORYINVENTORY

AllAll the offices wouldstock up the inventory ofthe offices wouldstock up the inventory ofapproximate 20 ecoapproximate 20 eco--lects .lects .

The stock from the warehouse will be procure

din

The stock from the warehouse will be procure

dinbatches.batches.

To meet thedemandfor bigger contracts the stockTo meet thedemandfor bigger contracts the stock

wouldbe supplieddirectly from the warehouse to thewouldbe supplieddirectly from the warehouse to the

users.users.


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FEASIBILITYSTUDYFEASIBILITYSTUDY

TECHNICAL FEASIBILITYTECHNICAL FEASIBILITY

FINANCIAL FEASIBILITYFINANCIAL FEASIBILITY

MARKETING FEASIBILITYMARKETING FEASIBILITY


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ECO-LECT

Ecolet tank

20-30 ltrcapacityConnecting

pipes

Grey water

outlet


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FINANCIALANALYSISFINANCIALANALYSIS::

INITIAL PROJECTCOSTINITIAL PROJECTCOSTParticularsParticulars Amount (Rs.)Amount (Rs.)

Land & Building (WarehouseLand & Building (Warehouse 50005000

sq.ft.)sq.ft.)

50,00,00050,00,000

FurnitureFurniture 5,00,0005,00,000

OfficesOffices 11,00,00011,00,000

Preliminary ExpensesPreliminary Expenses 50,00,00050,00,000

TotalTotal 1,16,00,0001,16,00,000


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PROJECTDESCRIPTIONPROJECTDESCRIPTION

Location :Location :STATUSSTATUS LOCATIONLOCATION AREAAREA COST(Rs)COST(Rs)

WAREHOUSEWAREHOUSE OWNEDOWNED BHIWANDIBHIWANDI 5000sq ft5000sq ft @ 600/sq ft@ 600/sq ft

=30,00,000=30,00,000

OFFICESOFFICES RENTEDRENTED KALYANKALYAN 450 sq ft450 sq ft 15,00015,000

RENTEDRENTED GHATKOPAR GHATKOPAR 450 sq ft450 sq ft 20,00020,000

RENTEDRENTED DADAR DADAR 450 sq ft450 sq ft 40,00040,000

RENTEDRENTED THANETHANE 700 sq ft700 sq ft 25,00025,000


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SOURCESOF FINANCESOURCESOF FINANCE

ParticularsParticulars Amt. (Rs.)Amt. (Rs.)

Capital (50% )Capital (50% ) 58,00,00058,00,000

Bank Term Loan (50%)Bank Term Loan (50%) 58,00,00058,00,000

TotalTotal 1,16,00,0001,16,00,000


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Sources of FinanceSources of Finance

Internal ( 50%)Internal ( 50%)

External (50%)External (50%)

Bank term loanBank term loan

(IDBI, etc)(IDBI, etc)


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Cost of Production (Rs.)Cost of Production (Rs.)

TankTank 600600

Motor (1/2 HP)Motor (1/2 HP) 10001000

Pipes & fittingsPipes & fittings 100100

Total Cost of ProductionTotal Cost of Production 17001700


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Fixed and variable Cost ( in Rs lakhs)Fixed and variable Cost ( in Rs lakhs)

Fixed CostFixed Cost LandLand 3030

BuildingBuilding 2020

FurnitureFurniture 0505 OfficesOffices 1111

TOTALTOTAL 6666

Variable CostVariable Cost SalarySalary 7.257.25

OverheadsOverheads

OfficeOffice 0.300.30

WarehouseWarehouse 0.100.10

S & DS & D 0.25 / 0.500.25 / 0.50

Cost ofCost of

productionproduction 10.20 / 20.4010.20 / 20.40 PromotionPromotion 2.52.5

InterestInterest 1.561.56

@ 12.5%@ 12.5%

TOTALTOTAL 22.16 / 32.6122.16 / 32.61


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Working Capital (Rs.)Working Capital (Rs.)

Current AssetsCurrent Assets

StockStock 36,00,00036,00,000

Less Current Liabilities:Less Current Liabilities:

CreditorsCreditors 20,40,00020,40,000

Labor overheadsLabor overheads 50,00050,000

S & D overheadsS & D overheads 50,00050,000

Factory overheadsFactory overheads 10,00010,000

TOTALTOTAL W.CapitalW.Capital 14,50,00014,50,000


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BEP AnalysisBEP Analysis

BEP =BEP = 66,00,00066,00,000 x 100x 100

5,00,0005,00,000

== 1320 %1320 %

Thus BEP will be achieved when the salesThus BEP will be achieved when the sales

revenue reaches 1320% of the fixed costrevenue reaches 1320% of the fixed costi.e. 8,71,20,000 Rs.i.e. 8,71,20,000 Rs.


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BEP CALCULATIONBEP CALCULATION

Contribution of 5 lakhs achievedfrom 5Contribution of 5 lakhs achievedfrom 5thth

month sales onwards.month sales onwards.

In this way, theBEP will be achievedinIn this way, theBEP will be achievedin

the 31the 31stst

month on the sale of the 33,634month on the sale of the 33,634thth

unit of the product.unit of the product.


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Marketing feasibilityMarketing feasibility Ease ofdistributionEase ofdistribution

Average orderAverage order

Freedom from numerous variationsFreedom from numerous variations

Freedom from seasonal fluctuationFreedom from seasonal fluctuation


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TARGETCUSTOMERSTARGETCUSTOMERS::

All washing machine users.All washing machine users.

Specially those users who face shortage ofSpecially those users who face shortage of

water supply.water supply. Builders andarchitectsBuilders andarchitects..


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PLACEPLACE

HEAD OFFICE: ThaneHEAD OFFICE: Thane

EMAIL: [email protected]: [email protected]

WEBSITE: www.ecolect.comWEBSITE: www.ecolect.com


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PlacePlace

STATUSSTATUS LOCATIONLOCATION AREAAREA

WAREHOUSEWAREHOUSE OWNEDOWNED BHIWANDIBHIWANDI 5000sq ft5000sq ft

OFFICESOFFICES RENTEDRENTED KALYANKALYAN 450 sq ft450 sq ft

RENTEDRENTED GHATKOPAR GHATKOPAR 450 sq ft450 sq ft

RENTEDRENTED DADAR DADAR 450 sq ft450 sq ft

RENTEDRENTED THANETHANE 700 sq ft700 sq ft


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DISTRIBUTIONDISTRIBUTION

SUPPLIER

SUPPLIER

SUPPLIER

SUPPLIER

WARE

HOUSE-

BHIWANDI

OFFICE-

THANE

OFFICE-KALYAN

OFFICE-

GHATKOPAR

OFFICE-

DADAR


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MEDIASUSED FORMARKETINGMEDIASUSED FORMARKETING

Television commercialTelevision commercial

Print advertisement in property plusPrint advertisement in property plus--supplement ofsupplement of

Times ofIndia, interiordesigning magazinesTimes ofIndia, interiordesigning magazines

Direct marketing to architects & buildersDirect marketing to architects & builders

hoardingshoardings

Website ( www.ecolect.com)Website ( www.ecolect.com)


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PRICINGSTRATEGYPRICINGSTRATEGY


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After sales service of ECOLECTAfter sales service of ECOLECT

1 year warranty for entire product1 year warranty for entire product

maintenance.maintenance.

6 month guarantee for motor6 month guarantee for motoronly.*Conditions Apply.only.*Conditions Apply.


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SWOT ANALYSISSWOT ANALYSIS

STRENGTHSSTRENGTHS

Concept of conservation ofConcept of conservation ofwater and in turn saveswater and in turn saves

moneymoney

Pioneer in this industryPioneer in this industry

BMC

water supplyBMC

water supplyregulationregulation

WEAKNESS

Target customer only restrictedTarget customer only restrictedto washing machine userto washing machine user

Initial reluctance of consumerInitial reluctance of consumer

towards grey watertowards grey water

Space constraint for EcoSpace constraint for Eco--lectlect

tanktank

OPPORTUNITIES:

Expansion outside MumbaiExpansion outside Mumbai

TieTie--ups with washingups with washing

machine manufacturersmachine manufacturers

THREATS:

In future other washingIn future other washingmachine company may adoptmachine company may adopt

our techniquesour techniques


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FUTURE PROSPECTSFUTURE PROSPECTS

Gradually expandour business inMumbai , thenGradually expandour business inMumbai , then

Maharashtra & acrossIndia.Maharashtra & acrossIndia.

Go for backwardintegration, start manufacturingGo for backwardintegration, start manufacturing

the raw materials.the raw materials.

Apply forISO Certification.Apply forISO Certification.

Product line expansion in order to reuse KitchenProduct line expansion in order to reuse Kitchen

water.water.

Tie ups with leading washing machine companies.Tie ups with leading washing machine companies.


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CONCLUSIONCONCLUSION

Final Ecolect

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