Mukund oil 1443273024173

1

A Product Project Report On

Pooja Hair Oil

Academic Year: 2014-15

College: Vivekanand college

Prepared By: Gajera Mukund H.

Submitted to:

Saurashtra University, Rajkot

Guided By: Mr. Jatinbhai sheth

Class: BBA Semester 5

2

PREFACE

B.B.A. course is a special course, which prepares young

entrepreneurs, & it’s very essential that they should have

the basic knowledge about how the small -scale business can

be started or which type of project is to be submitted to the

banks and other financial institution for the purpose of

loan.

One of the subjects namely Entrepreneurship and

Management of Small Scale Business has covered this aspect

with a view to create and develop entrepreneurial skill

among the students.

Today in the growth rate of Indian Economy, S.S.I. plays a

vital role by contribution of 40%, to the total national

income.

3

ACKNOWLEDGEMENT

"Planning is necessary in every walk of life. For successful

planning guidance is necessary."

Many individuals have supported me during the

completion of this project.

First of all, I would like to thank My Parents for providing

me an opportunity for the study of B.B.A., course at Vivekananda

college and Prof. Jatin Sheth, Our faculty, who provided me with

invaluable guidance through out my project.

Lastly, I would thank my parents and my friends, whose

words have encouraged and inspired me throughout the

preparation of the project.

Gajera Mukund H

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DECLARATION

I undersigned, Gajera Mukund H. the student of T.Y. B.B.A. here by

declares that this project is my own work & has been carried out

under the supervision of my guide Mr.Jatinbhai sheth.

The work has not been previously submitted to any other university

for any examination.

Date: -

Place-Rajkot

Signature

Gajera Mukund H.

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INDEX

Sr.no. Particulars

1 General Information

2 Production Details

3 Marketing Details

4 Financial Details

5 Future Plan

6 Photos

7 Conclusion

6

GENERAL

INFORMATION

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GENERAL INFORMATION

Name of the unit Pooja Hair Oil

Address of the unit “Pooja Hair Oil

Porbandar road (ishra),

Ta. Upleta, Dt. Rajkot.

Form of the

organization

Partner

Name of the product Pooja Hair Oil

SSI registration no. Applied For

Size of the unit Small scale

Financial year April to March

8

OWNERS PROFILE

Name: Gajera Mukund H.

Age: 21 years

Address: Navapra, Pithaday

street,Dhank, upleta,

Qualification: BBA (Marketing)

Financial

contribution:

60%

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Second Partner Name.

Name:

Chabhadiya Nikunj D.

Age: 21 years

Address: Manhar plot-10, mangada main road,

Rajkot, 360002.

Qualification: BBA (finance)

Financial contribution: 40%

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HISTORY & DEVELOPMENT OF PRODUCT

In 2009-10 “Pooja Hair Oil” established by Mr. Mukund Gajera with

his partner the small scale production. At initial period started

manufacturing of hair oil in small room of factory at Upleta by the

help of 8 workers and two main machinery.

In small time of period the product become famous and its demand

forces the sales in short time they mainly runs on small scale

production and also working as producer of Ayurvedik hair oil with

other competitors in local market.

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USES OF THE PRODUCT

Hair Oil is typically viscous liquids, either clear or opaque. They

come in various types from normal hair oils, ayurvedic, herbal,

medicinal, etc and cater to different types of hairs. The main

product of “pooja hair oil” is Ayurvedik Hair Oil. In present

times, almost each & every person becomes health conscious and

so as beauty conscious too. As far as health is considered, our

People now a day’s becoming more & more conscious about hair.

Thus, the selected product “pooja Hair Oil” is being introduced

which in market, which is an ayurvedic product.

Pooja Hair Oil being an ayurvedic product has achieved much

popularity. The ingredients used in this oil are ayurvedic, having

various merits with assurance of obvious change in quality &

growth of hair all these together constitutes the higher demand of

this product especially in local market

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PRODUCTION

DETAILS

13

INDEX

Sr.no. Particulars

1 Introduction

2 Details of the location of plant

3 Name of Raw Materials

4 Details of Machineries

5 Production Process

6 Production capacity

7 Pollution control and safety

measures

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INTRODUCTION

The development and importance of small scale industries has

increased immensely in this century. There is a great scope for

expansion of small scale units because it requires less capital and at

the same time more opportunities of development are available.

“Pooja Hair Oil” is very famous in local market. The demand of

Ayurvedic oil is very high so the importance of production is high.

To fulfill the market demand it is very important to produce same or

more stockable production of oil.

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DETAILS OF THE LOCATION OF THE PLANT

Location is very important factor to succeed industry. Every

entrepreneur of a business unit must give full consideration to the

suitable location of his enterprise. An enterprise must choose an

ideal location at the time of launching the enterprise. The selection of

an appropriate location enables the factory to operate smoothly

efficiently and minimum of cost.

This project is located at,

Porbandar road (ishra),

Ta. Upleta, Dt. Rajkot.

Location Factor:

1. Land:-

The lower cost of land in Uplate area with suitable atmosphere

influenced the firm to get established there.

2. Labour :-

Due to the location at industrial estate, all the facilities are

nearly available. The chief factor i.e. labour is easily available

because there are many villages situated nearby.

3. Transport Facility :-

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The situation of the firm near by the road ways i.e. highway and

also as it is in industrial estate, it gets all the necessary facilities

needed for transportation.

4. Other Facilities :-

Tele communication:-

Undoubtly the govt. has provided this industrial estate

with easy telephone / telegraphic facilities. The firm gets

easy service.

Electricity:-

The infrastructural facility of electricity is easily available.

Thus, location is very near to city, so it is the most important factor

for attracting client and secondly the proposed location has

adequate power and raw materials and finished product can easily

be transferred. So this proposed location is justifiable.

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NAME OF RAW MATERIALS

Pooja Hair Oil consists of following ingredients:

1 Seasame Oil

2 Extracts of Bhrangroj

3 Mundu vanaspatti

4 Hardey

5 Baheds

6 Amla

7 Sariva

Among all the above ingredients, extract of Bhrungraj is very

important. The major part of oil is formed by Bhrungraj

extracts.

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DETAILS OF MACHINARY

The following machineries are uses in production of hair oil

1 Mixing tank with stirrer capacity

This machine is for mixing the all ingredients in as per standards

2 Constant filling machine

This machine constantly mixing all the raw materials

3 Filtering equipments

After the mixer of all ingredients many small unuseful parts of raw

materials are left by the help of this machine filtering is possible.

4 Testing machine

After filtering this machine test the standards of oil

5 Packing machine

Final oil is ready to pack in pouch and bottle.

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PRODUCTION PROCESS

PROCESS FLOW CHART

The process of hair oil manufacturing involves following steps:

1. MIXING:

In this step all the ingredients like base oil, herbal extract/oils,

perfumes and colours are mixed in the desired proportions in

mixing tank using slow speed stirrer for 20 Minutes and then

allowed to settle for two to three hrs.

Base Oil

Mixing Colour Herbal extract Oil

Filtration

Inspection

Bottling & leveling

Packaging

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2. FILTERATION:

The oils is now filtered through filter press

3. INSPECTION/TESTING:

Filtered oil is sent to laboratory for necessary testing.

4. BOTTELING AND LABELLING:

After passing through required inspection, oil is now filled in

cleaned and dried bottles in required volumes and then sealed

and leveled.

5. PACKGING:

Bottles are now packed in corrugated boxes for marketing.

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PRODUCTION CAPACITY

Sr.

no.

Particulars Installed

Capacity

Utilized

Capacity

a. Capacity in %

100% 60%

b. Daily Production 170 liter 95 liter

c. No. of working

days in a month

25 days 25 days

d. Monthly

Production

4250 liter 2375liter

e. No. of working

days in a year

300 days 300 days

f. Yearly Production 51000 liter 28500 liter

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Raw Materials

Raw Materials Requirements

Name Rat kg Reqd./ Day Reqd./ Month

Quantity Amount Quantity

Amla 50 60 3000 1500

Seasame Oil 30 25 750 625

Bhrangroj 1 350 350 8750

Mundu vanaspatti

8 20 160 500

Hardey 8 7 56 175

Sariva 2 250 500 6250

Total 99 4816

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POLLUTION CONTROL AND SAFETY MEASURES

The manufacturing process of Pooja hair oil does attract pollution

control measures, which is advised to consult State Pollution

Control Board and follow the guidelines offered by them.

It also provide a aid kit and all necessary safety measures are taken

care of incase of any accidents.

IMPLEMENTATION SCHEDULE

The major activities in the implementation of the

project have been listed and the average time for

implementation is estimated at 5 months

No

. B. Particulars

Month

s

1. Scheme Preparation & Approval 1

2. SSI Provisional Registration

2

3. Sanction of loan by financial institution 1

4. Installation of Machinery 2

5. Procurement of Raw material 2

6. Recruitment of technical personnel 1

7. Provision of other facilities like water,

electricity etc. 1

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MARKETING

DETAILS

25

INDEX

Sr.no. Particulars

1 Introduction

2 Market potential of product

3 Distribution channel

4 Promotional activities

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INTRODUCTION

Marketing is a one kind of activity of promoting the product in such

a way that consumer will aware about it. It includes primary

resources as well as a set of activities in order to direct the flow of

goods and services from producers to consumers in the process of

exchange and distribution.

It is a dynamic process which includes a set of interacting activities

dealing with a market.

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MARKET POTENTIAL

Hair oil Industry is registering an important growth in hair oil

market. Hair oil is a mostly common commodity used everywhere.

The demand of perfume hair oil is visible from rural area to

cosmopolitan cities. The ladies used it for both its functional purpose

as well as a beauty care commodity. The demand is increasing at par

with the awareness of hair care, advertisement messages in different

media, satellite TV channels and enhancement of purchasing power

of the individuals. At the same time Hair oil is having export

worthyness too. The Indian market for hair care is estimated more

than Rs.500 crores and perfumed hair oil is an important part of it.

Indian ayurvedic cosmetic products are always in demand although

there is a tough competition in this line but there exists a gap

between demand and supply for the quality products. Now –a-days

people are very crazy for the ayurvedic products in attractive packs

have good demands.

In present times, almost each & every person becomes health

conscious so, there is no question of decrease in demand of hair oil.

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DISTRIBUTION CHANNAL

Distribution means to distribute, to spread out. In the field of

marketing, channels of distribution indicate routes or pathways

through which goods and services flow, or move from producers to

consumers. The route or channel includes the manufacturer and the

ultimate consumer as well as all intermediate.

“POOJA HAIR OIL”

Whole seller

Retailer

Consumer

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Pooja flows its products by whole seller to consumer and also direct

sell to the Chemist.

PROMOTIONAL ACTIVITIES

Sales promotion includes those marketing activities, other than

personal selling, advertising and publicity that stimulate consumer

purchasing and dealer enthusiasm and effectiveness, such as

displays, exhibitions, shows, demonstrations, free samples,

trading stamps. Sales promotion is the plus ingredient in the

marketing mix, whereas advertising and personal selling are

essential and basic ingredients in the marketing mix. It is an integral

part of marketing efforts. It is an activity of increasing the total sales

of the firm.

>>DISCONT:

The company provides different types of discount to the wholesaler.

It provides 15% trade discount and 2% cash discount to the

wholesaler.

>>SERVICE TO SELLER:

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The firm provide discount to the wholesaler as mentioned above.

The firm also pays transportation cost. When any product, which is

of inferior quality in the market, the firm, replaces such kind of

product with another one.

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FINANCIAL

DETAILS

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INTRODUCTION

Finance is the lifeline of business. It is the pivot around

which all economics activities revolve. Finance decision has

to get vital role in any organization. It is essential to set up

a systematic management for sound management of sound.

Finance is that administrative area or set of administrative

functions in an organization which relate with the

arrangement of cash and credit so that the organization may

have means to carry out its objectives as satisfactory as

possible.

ADMINISTRATIVE WORK

Particular/Designation No. Salary Total Rs. (per year)

Manager 1 20,000 20,000 2,40,000

Accountant/Salesman 1 10,000 10,000 1,40,000

Skilled worker 2 15,000 30,000 3,60,000

Unskilled worker 3 10,000 30,000 3,60,000

Peoin&other 1 - - 1,00,000

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Other contingent expenses

Sr. No. Particulars Amount

1. Postage & Stationary 10,000

2. Electricity 1,20,000

3. Transportation charges 33,000

4. Advertisement & Publicity 50,000

5. Direct 40,000

6. Office 20,000

7. Auditing 70,000

8. Packing 60,000

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WORKING CAPITAL DETAILS

A. Statement showing total working capital requirement.

BREAK EVEN POINT


1. Int. on total investment 3,50,000

2. Total Depreciation 20,750

3. 40% salary & wages 5,60,000

4. 40% of other contingent expenses 2,80,000

Total 12,10,750


1. Raw Materials 14,00,000

2. Salaries 12,00,000

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B.E.P. (%)

= {Fixed Cost / (Fixed Cost + Profit)} X 85

= 13,11,900/ (13,11,900 + 9,70,000) X 85

= 48.86%

B.E.P. (units)

= Fixed Cost/ (Contribution/unit)

= 13,11,900/0.56

= 23,42,679 Hair Oil

B.E.P. (Rs.)

= B.E.P. x S.P./unit

= 23,42,679 x 1.12

= Rs.26,23,800

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P. V. Ratio

= Contribution per unit / Sales X 100

= 0.56 / 1.12 X 100

= 50%

Gross Profit Ratio

= Profit / Sales X 100

= 32,61,450/ 43,81,450 X 100

= 74.43%

Fixed Assets Ratio

= Fixed Assets/ Sales X 100

= 1,95,000/43,81,450X100

= 4.45%

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Net Profit Ratio

= Profit after Tax / Sales X 100

= 12,87,700 /43,81,450 X 100

= 29.39%

BALANCE SHEET

TRADING A/C

2013-14 Particulars Debit Particulars Credit

Opening

Stock

Purchase Account

Sales Account

Purchase 14,00,000 Sales 43,81,450

Expenses

Closing Stock(Trading)

Electricity Expense

1,80,000 Closing Stock 7,00,000.00

Direct expenses

40,000

Wages 2,00,000

Gross Profit 32,61,450

Transfer To P&L A/c.

50,81,950

50,81,950

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P&L A/c

2013-14

Particulars Debit Particulars Credit


Salaries 12,00,000

Stationery 10,000

Telephone 10,000

Auditing 70,000

Office 20,000

Rent

land&build 150000

Distribution

Advertising 50,000

Packing 60,000

Transport 33,000

Financial

int. on loan 1,00,000

Insurance 1,50,000

Int. own cap. 1,00,000

Depreciation

electric 1,250

Plant&mach 6,000

labortory 3,000

office eqip 3,000

furniture 6,000

motorcycle 1,500

mukund 772620

12,87,700

nikunj 515080

32,61,450 32,61,450

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balance Sheet

2013-14

Particulars Liability Particulars Asset

Rs. Rs. Rs.

Capital Account

Fixed Assets

mukund 772620 12,87,700

nikunj 515080

Sundry Creditors

Plant & Machinery

60,000

yuvraj ind. 6,25,800 6,25,800 -Deprecition 6,000 54,000

sun ent. 7,15,950 7,15,950 Laboratory Equipments

15,000

-Deprecition 3,000 12,000

Bank OCC a/c

SBI Term Loan A/c (16%)

6,00,000

Furniture 60,000

loan 1,50,000 4,50,000 -Deprecition 6,000 54,000

Motorcycle 30,000


Office equipments

30,000


40

Sundry Debtors

parth&suns. 6,00,000 6,00,000

komal ent. 60,000 60,000

ramesh ind. 4,93,950 4,93,950

Bank Accounts

SBI Bank A/C

6,50,000 6,50,000.

Cash-in-

hand

Cash-in-hand

4,00,000 4,00,000

Stock-in-

hand

Closing Stock

7,00,000 7,00,000

Total 30,79,450 Total 30,79,450

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Trading A/c 2014-15

Year 2014-15


Opening Stock

7,00,000

Purchase Account

Sales Account

Purchase 20,00,000 Sales 51,40,750

Expenses

Closing Stock(Trading)

Electricity Expense

2,00,000 Closing Stock 8,00,000

Direct expenses

50,000

Wages 2,50,000



59,40,750 59,40,750

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P/l A/c Particulars Debit Particulars Credit


Salaries 12,00,000

Stationery 10,000

Telephone 10,000

Auditing 70,000

Office 20,000

Rent

land&build 150000

Distribution

Advertising 60,000

Packing 65,000

Transport 35,000

Financial


Insurance 1,50,000


Depreciation

electric 1,250

Plant&mach 6,000

labortory 3,000

office eqip 3,000

furniture 6,000

motorcycle 1,500

Net Profit 7,00,000

mukund420000

nikunj280000

27,40,750 27,40,750

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Balance Sheet

2014-15


Rs. Rs. Rs.

Capital Account

Fixed Assets

mukund 4,20,000 7,00,000

nikunj 2,80,000

Sundry Creditors

Plant & Machinery

60,000

yuvraj ind. 5,37,750 5,37,750 -Deprecition 6,000 54,000


15,000


Bank OCC a/c

SBI Term Loan A/c (16%)

4,50,000

Furniture 60,000

-loan repayment

1,50,000 3,00,000 -Deprecition 6,000 54,000

Motorcycle 30,000


Office equipments

30,000

-Deprecition 3,000. 27,000

Sundry Debtors

parth&suns. 3,00,000 3,00,000

komal ent. 77,250 77,250

ramesh ind. 1,00,000 1,00,000

Bank Accounts

SBI Bank 6,00,000 6,00,000

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A/C

Cash-in-

hand

Cash-in-hand

2,00,000 2,00,000

Stock-in-

hand

Closing Stock

8,00,000 8,00,000

Total 22,52,750 Total 22,52,750

Trading a/c

Trading a/c

year 2015-16


Opening Stock

6,00,000

Purchase Sales

Purchase 17,00,000 Sales 48,06,750

Expenses

Closing Stock

Electricity Expense

2,50,000 Closing Stock 8,59,000

Direct expenses

6000

Wages 2,50,000



56,65,750 56,65,750

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P&L A/c

P&L A/c

2014/15



Salaries 12,00,000

Stationery 10,000

Telephone 10,000

Auditing 70,000

Office 20,000

Rent

land&build 150000

Distribution

Advertising 65,000

Packing 70,000

Transport 40,000

Financial


Insurance 2,00,000


Depreciation

electric 1,250

Plant&mach 6,000

labortory 3,000

office eqip 3,000

furniture 6,000

motorcycle 1,500

Net Profit 7,50,000

mukund450000

28,05,750 28,05,750

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Balance sheet

Balance sheet


Rs. Rs. Rs.

Capital Account

Fixed Assets

mukund 4,50,000 7,50,000

nikunj 3,00,000

Sundry Creditors

Plant & Machinery

60,000

yuvraj ind. 5,30,250 5,30,250 Deprecition 6,000 54,000


15,000

Deprecition 3,000 12,000

Bank a/c

SBI Term Loan 3,00,000.00

Furniture 60,000

loan 1,50,000 1,50,000 -Deprecition 6,000 54,000

Motorcycle 30,000


Office equipments

30,000

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Sundry Debtors

parth&suns. 3,00,000 3,00,000

komal ent. 53,250 53,250

ramesh ind. 1,00,000 1,00,000

Bank Ac

SBI A/c 3,00,000 3,00,000

Cash-

in-hand

Cash-in-hand

3,00,000 3,00,000

Stock-in-

hand

Closing Stock

6,59,000 8,59,000

Total 20,87,750 Total 20,87,750

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RISK FACTORS

As the product is new the main risk is that

whether market will readily accept the product or

not. It will prove success if it properly marketed.

Another risk is that if any new material comes

into market other than paper, then it will be hard

to maintain the market.

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NAME & ADDRESS OF MACHINERY & EQUIPMENT

SUPPLIERS

1. Arjun oil miler ind.

Natavar nagar, mp-10,

Kutiyana.

2. M/S Sandhu packin machine ind.

Yoginagar. Plot No.– 20,

Keshod.

NAME & ADDRESS OF RAW MATERIAL SUPPIERS

1. Yuvraj ayurvedik shop,

Jivandhara, ramraj society,

Dhoraji.

2. shee ram coconut.

Chapatti road,

Porbandar.

3. Yadav coconut.

Near madhav ray tample,

Madhavpor.

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DISCLODURE OF A/cing POLICIES

Depreciation is calculated on straight line

methods.

Salary is given within 1st week of every month.

Raw material is purchased once in two months.

Stock is calculated at cost or market price

whichever is

low.

Interest on ownership capital is used for costing

purpose and is reinvested in business again

every year.

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CONCLUSION

In the product project report on Sav-E paper bags

I have discussed all financial data and other relevant

information

The market of Sav-E paper bags is expanding;

demand for the product is increasing day by day. The

return on this business is also satisfactory.

At last it can be said that future of this product is

very bright.

With the expectation of high profitability it is

assumed that it would be the perfect product to be

manufactured in today’s environment. AFTER ALL IT’S

AN ENVIRONMENTAL FRIENDLY PRODUCT!!! Its Sav-E

paper bags.

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Future Plans

To use totally eco-friendly papers, which are made

out of baggage and not tree.

To make the product popular in every place of

Gujarat and gradually cover all near by states.

To make the firm a medium scale industry and then

a large scale.

If possible I would export my product, as they are

highly in demand in foreign countries.

Lets hope for the best and work hard to make all

future plans come true!!!

***> I will try to increase old technology to new

technology.

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__> I will go to this level to that level.

Mukund oil 1443273024173

Business

Transcript of Mukund oil 1443273024173