Reema PFR Ppt

7/28/2019 Reema PFR Ppt

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RAM HANDICRAFT

(ART WITH HEART)

ANKIT BAJAJ

MANISH KUMAR

REEMA KUMARIMONIKA TOMAR

ADDRESS:

MANUFACTURING UNIT- D-231 SEC-5 GREATER NOIDA

CORPORATE OFFICE- F-132 SEC-10 NOIDA ,G.B NAGAR ,UP


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NATURE OF THE BUSINESS

Our business is mainly a handicraft manufacturing unit

(mainly handmade items).Our firm / enterprise is a

partnership firm which is registered under Indian

Partnership Act, 1932.

OBJECTIVE OF THE PROJECT

To know about the market potential for the handicraft

To analyze the handicraft manufacturing, its competition,

customer preferences and their satisfaction level.

To find out the major players in the market


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INDUSTRY

The small-scale industries including handicrafts can play a

major role in the development of the economy of both

developed and the developing countries equally.

The 90-95% of the total industrial products of the world isproduced in small workshops run by less than 100 people.

The Indian handicrafts industry is highly labour intensive,

cottage based and decentralized industry.

There is huge market potential in all Indian cities andabroad.


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TECHNICAL FEASIBILITY

PRODUCT:-The product range consists of:

Greeting Cards

Various types of soft toys like Teddy bears etc.

Holiday gifts and decorative items like bells.

Brass handicrafts

USE OF THE PRODUCT

GIFT

Home decoration

Toys

Clothes

Accessories

Handmade paper product


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MANUFACTURING PROCESS

Design making Molding Casting

Polishing

Decorative

processesFinishingPlating

Qua

litychec

king

Transport and

packaging


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ALTERNATIVE MANUFACTURING PROCESS

JUSTIFICATION FOR THE ADOPTION OF SELECTEDPROCESs

This process has been selected in relation to the availabilityof human resources, feasibility of economies of scale, equation ofthe present demand and the amount of units to be produced at atime.

PLANT SIZE

The proposed manufacturing unit will be on 2000 sq. feet ofland.

PLANT LOCATION

Our enterprise is divided into the manufacturing unit and theoffice. The manufacturing unit is located at Greater Noida andour office is situated at Noida sec-10.


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PRODUCTON SCHEDULE

Item Name Production time (per piece)

Greeting card 10 minutes

Teddy bear 1 hour 30 minutes

Embroided clothes 3 hours

Artificial Jewellery 20 minutes

Bangles 10 minutes

Bracelet 10 minutes

Photo frame 15 minutes

Flowers and vase 30 minutes

Decorative mask 10 minutes

Brass handicraft 50 minutes

Mixed metal artifacts 1 hour 10 minutes

Paper bags 07 minutes

Photo album 18 minutes

Envelop 05 minutes


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SELECTION OF MACHINERY AND EQUIPMENT

S. No. Particulars No. Rate Amount

1 Molding machine 1 200000 200000

2 Casting machine 1 300000 300000

3 Surface planner 9 30000 270000

4 Grinder(small) 5 2500 12500

5 Mixer (big) 5 7000 35000

6 Driller 2 1500 3000

7 Band show (aara

machine)

1 25000 25000

8 sewing machine 3 30000 90000

9 Glass cutting

machine

1 3000 3000

10 Plating machine 1 30000 30000

Total: 968500


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PLANT LAYOUT

ROOM1

ROOM2

ROOM3

WATER

SUPPLY

WASH

ROOM

COMMO

N ROOMSTORE ROOM FOR

FINISHED GOODS

EXIT GATEMANAGING OR

CONTROL

ROOM

STORE ROOM FOR

RAW MATERIALENTRA

NCE

ROOM1ROOM1ROOM1STORE ROOM FOR FINISHED GOODSSTORE ROOM FOR FINISHED GOODSSTORE ROOM FOR FINISHED GOODS


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COST OF ERECTION OF THE PROPOSED BUILDING AND LANDIMPROVEMENT

The construction cost is Rs 13, 07,000 exclusive of the cost of the pre-opening operations, manufacturing cost and project layout and design.

STUDY OF AVAILABILITY OF RAW MATERIAL AND UTILITIES

Raw Material Availability

Utilities

ESTIMATION OF LABOUR AND SUPERVISOR REQUIRED

Handicraft is a labour intensive product and it is all depend upon labouronly and all kind of labour requirements are there like in this we needskilled , semi skilled and unskilled workers.

TYPE AND QUANTITY OF WASTE DISPOSAL

Waste generated out of the product would be majorly biodegradable andwould be sent to the Narela recycling plant and the rest out to the localgarbage centre.


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COMPONENT FROM OUTSIDE

No such component has been purchased from outside to optimize cost.

POWER REQUIREMENT

Distribution transformation station, loading capacity averaging 10 KW, 3-phase industrial meter is estimated to fulfil the requirement of power.

B-1 category is advisable for electric consumption. Electricity will besupplied by BSES.

Monthly gas consumption is estimated at 46 HM3 on average for theproject. Water supply would be through local municipality.

ESTIMATE OF THE PRODUCTION COST

1322880 for the 1st year

1433120 for the 2nd year 1543360 for the 3rd year


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MARKET FEASIBILITY

MARKET DESCRIPTION

METHOD OF TRANSPORTATION- Roadways

EXISTING RATES OF TRANSPORT

Truck-300/tonne Tempo-400/tonne

CHANNEL OF DISTRIBUTION

Ram Handicraft Retailer Customer

Ram handicraftWholesaler Retailer Customer

GENERAL TRADE PRACTICES

As far as the pricing is concerned, our company charges appropriate price for eachand every handicraft item and services.

There are no unfair trade practices followed whatsoever.


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Demand Analysis

units/year (on an average of all items listed below)

SUPPLY ANALYSIS

Total supply = {30.0*12672.0}/ 20 = 19008.00 units /year

MAJOR CONSUMER OF THE PRODUCT

Our real customers are the retailers and wholesalers of gift itemssituated mainly in the Good area of noida like sec-18,Brahmaputramarket, atta market etc.

Competitive Position of the Product

The competitive position of the product is very strong with respectto the present market conditions and demand.

The main aim is to provide best quality of handicraft item, artificialjewellery decorative item to our customer better than competitors.


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MARKETING STRATEGY

Our marketing strategy is Niche Marketing

OUR KEY OBJECTIVE FOR MARKETINGSUCCESS

To provide quality and trendy product.

PROMOTION TOOLS

Pamphlets

Newspaper

Agents & Personal Contacts Products Brochures

Business Cards


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FINANCIAL ANALYSIS

FIXED CAPITAL

The total cost on fixed capital are 31,98,900

WORKING CAPITAL

The total Working Capital Requirements by our company for 1ST 3 years are:-

1st year- 1928

2nd year- 2088

3rd year-2249

COST OF PROJECT

The total cost of our project is 38,85,648

MEANS OF FINANCE

Promoter's Capital- 12,95,203

Long/ medium Term Loan from Banks- 25,90,445

Total- 38,85,648


16/19

BASIC ASSUMPTION UNDERLYING

FINANCIAL PROJECTION The company would work for 360 days per year on a 1 shift basis.

The installed capacity on this basis works out to 12000.

The company will start commercial production on July 1, of year 1.The expected capacity utilization will be 60% in first year, 65% in the

second year, and 70% for the third year and so on.

Wages and salaries are expected to be Rs 918000.

Factory overheads expenses will be Rs 32880 for the first year.


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INCOME STATEMENT

PROJECTED BALANCE SHEET

CASH FLOW BREAK EVEN ANALYSIS


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1 2 3

Fixed cost 1390919 1390919 1390919

total cost 2252847 2324674 2396501

Sales

Realisation3288000 3562000 3836000

010000002000000300000040000005000000

BREAK EVEN

POINT

YEARS, 2009

Fixed cost,

1390919

total cost,

2252847

Sales

Realisation,

3288000

Break Even

Point In

Terms Of

Volumes Of

Sales,

1885081YEARS, 2010

Fixed cost,

1390919

total cost,

2324674

Sales

Realisation,

3562000Break Even

Point In

Terms Of

Volumes Of

Sales,

1885081YEARS, 2011

Fixed cost,

1390919

total cost,

2396501

Sales

Realisation,

3836000

Break Even

Point In

Terms Of

Volumes Of

Sales,

1885081

0 1 2 3 4 5 6

Chart Title

Series1 Series2 Series3

ANALYSIS & INTERPRETATION OF


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ANALYSIS & INTERPRETATION OF

FEASIBILITY STUDY

Market / Commercial Feasibility

Demand for the product

Supply position for the product Distribution Channel

Pricing of the product

Government Policies

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