1. Business plan
On
BESHA
N
PREPARED BY
KUMBHANI JAYDIP M.
M.B.A.
Roll No: - 108
GUIDED BY :- DR. RAJESH PATEL
NAME OF INSTITUTE
N.R.V.I.B.M.S.
M.B.A. COLLEGE,
BILKHA ROAD,
JUNAGADH – 362 001.
1

2. Assuming that the student him self is an entrepreneur the
syllabus of M.B.A. includes “preparation of business plan” It is having
practical importance and it helps in launching a product.
Product project report is high light of location justification,
capital requirement, technology, inception, and expansion of business and
most important. i.e. Social responsibility of business.
The Vital Role of business plan is in determining profitability
of a product and it is measurement. “How for the planning is successful.”
I have prepared by my business plan on “mini cement
industry”
2

3. Successful accomplishment of any work requires cooperation, help
and guidance for many people. I had a wonderful of opportunity to make a
Business Plan on Beshan as a part of my practical training in M.B.A.
This report would out have been possible without the help of many
people alone I would like to acknowledge and thank for their kind co-
operation.
First of all I thank N.R.V.I.B.M.S.- Junagadh for giving me
opportunity of doing Business Plan.
I specially thank DR. RAJESH PATEL for giving me important
guidance for making the project informative and well constructed, we had
spent his precious time for my Business Plan.
Date :-
Place :- Junagadh
Yours faithfully,
KUMBHANI JAYDIP M.
3

4.  Project at a Glance.
 Detail about promoters.
 Location.
 Infrastructure, facilities
 Market Analysis.
 Inspection And Quality Control.
 Production Process.
 Details Of Land & Building.
 Details of Plant & Machinery
 Details Of Raw Materials.
 Personnel.
 Production Capacity.
 Financial Details of Project.
 Ratio Analysis.
 Break Even Point.
4

5.  Suppliers.
 Name of unit :~ PC Private Limited.
 Name of Products :~ Beshan
 Address of Communication :~ IndustrialArea,G.I.D.C.
(Resi. Office) 150/165, metoda,
Rajkot.
 Types of Unit :~ Partnership Firm.
 Size of Unit :~ Small Scale Industry.
 S.S.I. Reg. No. :~ Application Made for
 Location Of Unit :~ IndustrialArea,G.I.D.C.
150/165,Metoda,Rajkot.
 Partners :~ 1)KUMBHANI JAYDIP M.
2)KUMBHANI VAIBHAV M.
 No. of Shifts :~ 1 Shifts.
5

6. Promoter (1) (2)
Name KUMBHANI JAYDIP KUMBHANI
M. VAIBHAV M.
Address “Shree Krishna Kunj” “Purusharth”
21/28, New Jagnath Aaradhana Socity,
Plot, Rajkot – 360 001.
Rajkot – 360 001.
Age 21 years 27 year
Degree M.B.A. M.B.A.
Nature of Work Production Department Marketing
& Responsibility Department
Contribution 50%. 50%.
Experience Fresh Fresh
6

7. The major activities in the implementation of the
project have been listed and the average time for implementation is
estimated at 11 month.
SR NO PARTICULARS MONTH
1. Preparation of Report ½ month
2. Registration and other formalities 2 month
3. Sanction of loan by financial institutions 3 month
4. Plant and Machinery
 Placement of orders 1 month
 Procurement 1 month
 Power Connection 1 month
 Installation of Machine 1 month
5. Procurement of Raw Materials 1 month
6. Recruitment of technical personnel 1 month
7

8. The unit is located at such area where it can avail the
concerned business easily. Moreover exact location is place where there us
minimum of cost & maximum profit can be achieved.
Before setting a unit, entrepreneur has to kept in mind the
various location factors such as availability of land, power, water such
infrastructure facilities availability of labour etc..,
It is quite known that metoda G.I.D.C. (Rajkot) is an
industrial area & we can obtain any facility as a convenient way.
Surrounding area is containing a big market for the Beshan. There are
many other facilities of factors, which inspired us to choose proposal
location.
8

9.  LABOURS :~
Generally all types of main power are available have at
reasonable cost. As for as this manufacturing firm is concerned with
semiskilled labour and there few also get labour in adequate number and
at cheap rate.
 RAW-MATERIALS :~
There is more transportation facility because of center point
of Saurashtra. From this we can easily get the raw materials like gram ,
gram-dal , bags etc., We purchase raw materials from Delhi, Aakola and
also from Rajkot.
 TRANSOPRTATION & COMMUNICATION :~
As we have seen that Rajkot is a center point of Saurashtra.
So transportation facilities are available in Rajkot. It is situated on
National High Way. So, road transport is easily available.
9

10.  INDUSTRIAL ATMOSPHERE :~
There is better industrial atmosphere in metoda near Rajkot
as so many other industrial. Like Textile, Steel, Cotton, chemical, oil
Industrial etc., are located there. Hence we could easily develop jour
industry through inspiration of other industries.
 FINANCIAL FACILITIES :~
There are so many banks and individual many land from
which our financial requirement is satisfied.
 OTHER FACTORS :~
There are so many other factors, like electric connection,
maintenance of machine, technical knowledge, which are responsible for
the set up of our industry in this area.
Thus, location proposed by us in suitable in every aspects.
10

11. Infrastructure, facilities provided by G.I.D.C.
The industrial sheds of G.I.D.C. are fully equipped with facilities like
electricity, telephone, water, transportation, etc
Skilled & semi-skilled workers are available from Rajkot &
surrounding areas.
From marketing viewpoint, a good demand exists for own product.
Rajkot, being a big city, all the means of transportation is available.
Rajkot is developing commercially. Small & Medium scale industries
are coming up in Shapar, Varaval, Morbi & Bamanbor. Hence for
these industries also, demand for Beshan still exists.
11

12. Industrial progress is the backbone of nation’s economy.
Industrial Evolution is a natural process over a number of years.
A Market consists of all the potential customers sharing a
particular need or want who might be willing & able to engage in
exchange to satisfy that need or want.
Food Industry has experienced tremendous growth over last 2
decades in light of growing business, increased expansion of industrial
undertakings.
The market potential for Beshan should be evaluated in light
of in Increase demand of farshan. Every Age of person wants to eat new
variety of farshan, Which was made by the Beshan. Items made by the
Beshan are almost used in every function of this side of the country. So,
this business has the big future ahead of its.
12

13. To survive in a competitive business environment
organization makes all possible efforts to produce the products, which
satisfy their customers to the maximum extent.
“Quality cannot reliability. Quality is consumers is the golden
code the existence of the product”.
In a product like Beshan, from raw material to finish goods
inspection & quality control is required. Simple devices & methods will
be used to check the raw material proportion & quality & every stage.
13

14.  CLEANING :~
The gram are taken out of room and cleaned by labourers
employed for cleaning. Any dust particle or other particles along with
gram are separated from it. Then the grams are read for further process.
 WASHING :~
To make Beshan, this is the second process of the production.
In this process grams are washed and made gram separated from the dust.
 SEPARATING :~
After being washed grams are ready for separating process.
This separating process is between gram and dal. When husk taken-up on
to the gram become dal and ready to further processing.
14

15.  GRINDING :~
In this process the dal are grinding in to the machine, which
is roller and palvarider flour. In this machine dal of gram is become
Beshan which is the final product of the firm when the Beshan is ready its
go to the packing department.
 PACKING :~
In this part or we can say in this manufacturing process,
Beshan is packed in different scale in bardan bags, generally the scale of
packing is 50 Kg. or 100 Kg.
15

16. PARTICULAR AREA AREA
Land @ Rs 135 2,000 sq. ft. 2,70,000
Building @ Rs. 2600 375 sq. mtrs. 9,75,000
Total 2,000 sq. ft. 12,45,000
16

17. NO. PARTICULAR QTY. COST (RS.)
1 Separator & Cleaning 1 1,50,000
2 roller & Pulverizer 1 2,25,000
3 Sent Figure 1 1,40,000
4 Scale & Packing 1 50,000
5 Octroy Charge
+ Installation & Electrification 7,500
Charges 7,500 15,000
Total 5,80,000
6 Furniture 60,000
7 Tools 25,000
8 Computer & Telephones 45,000
Preliminary & Pre-operative
9 Expense 68,000
TOTAL 7,78,000
17

18. The following is regarding raw-material required per month
to manufacturing Beshan.
MONTHLY
NO. DESCRIPTION QTY. kg.
1 Gram & Gram Dal 45000
 Raw – material for Beshan, Rs. 20 per kg.
 Total Cost of Raw Material per 2 Month 1800000 Rs.
18

19. No. Description Person
1 Marketing Manager 1
2 Finance Manager
3 Personnel Manager 1
4 Skilled Workers 2
5 Semi Skilled Workers 8
6 Clerk 1
7 Accountant 1
8 Peons 1
9 Computer Operator 1
Total 17
19

20. The expected capacity utilization on double basis for 300 das
during first year operation is 50 %
The unit is expected to achieve full capacity utilization from
the 2nd year onwords.
PARTICULAR 1st year 2nd year
50% 100%
Beshan 5,40,000 kg. 10, 80,000 kg.
Total Rs ( P. A.) 1,08,00,000 2,16,00,000
20

21. 21

22. No. PARTICULARS
1 Fixed Capital Details
2 Personnel
3 Other Expense
4 Utilities
5 Fixed Cost
6 Variable Cost
7 Working Capital Requirement
8 Total Capital Investment
9 Source of Finance
10 Interest On Capital
11 Loan Repayment Schedule
12 Depreciation
13 Production Schedule
14 Details Of Sales
15 Cost of Production
16 Cost Sheet
17 Operating Statement
18 Profit & Loss A./c.
19 Balance Sheet.
22

23. No. Details Price
1 Machinery
a) Separator & Cleaning 1,50,000
b) Roller & Pulverizer 2,25,000
c) Sent Figure 1,40,000
d) Scale & Packing 50,000
e) Octroy Charge 15,000
Total 5,80,000
2 Furniture 60,000
3 Tools 25,000
4 Computer 45,000
5 Preliminary & pro-operative Exp. 68,000
Total 7,78,000
6 Land & Building 12,45,000
Total Fixed Capital 20,23,000
23

24. Salar Total Totla P.
NO. Description Nos. y (P.M.) a.
Production Staff
1 Skilled Workers 2 3,500 7,000 84,000
Semi-Skilled
2 Workers 8 2,500 20,000 2,40,000
Total 27,000 3,24,000
Administration Staff
3 Accountant 1 3,500 3,500 42,000
4 Peons 1 2,000 2,000 24,000
5 Computer Operator 1 2,500 2,500 30,000
6 Clerks 1 3,000 3,000 36,000
Total 11,000 1,32,000
Manager
Marketing Manager
7 (partner 1
12,00
Finance Manager 0 12,000 1,44,000
8 Production Manager
Personnel Manager 12,00
(Partner) 1 0 12,000 1,44,000
Total 24,000 2,88,000
Total 62,000 7,44,000
24

25. DETAILS AMT. AMT.
(P. M.) (P.A.)
Postage & Stationary 900 10,800
Repair / Maintanance 3,400 40,800
Advertisment & Publicity 1,200 14,400
Miscellaneous Expenses 600 7,200
Telephone Expense 3,500 42,000
Transport 5,600 67,200
Total 15,200 1,82,400
25

26. Details Amt. Amt
P.M. P.A.
Power 14,000 1,68,000
Water 2,000 24,000
Total 16,000 1,92,000
26

27. PARTICULAR 1STYear 2nd year
Rs. Rs.
Administration Staff 1,32,000 1,32,000
Managers 2,88,000 2,88,000
Other Expenses(60%) 1,09,440 1,09,440
Particular 1st year 2nd Year
Rs. Rs.
Production Staff 3,24,000 6,48,000
Utilities 1,92,000 2,56,000
Other Expenses ( 40%) 72,960 1,45,920
27

28. No. DETAILS Two Months P. A.
1) Raw Material
45000 Kg. @ 20 Rs. 900000 18,00,000 1,08,00,000
2) Personnel
Fixed 70,000 4,20,000
Variable 54,000 3,24,000
3) Other Expenses
Fixed 18,240 1,09,440
Variable 12,160 72,960
4) Utilities 32,000 1,92,000
Total 19,86,400 1,19,18,400
28

29. No, DETAILS Rs. Rs.
1) Fixed Capital
a. Machinery 5,80,000
b. Furniture 60,000
c. Tools 25,000
d. Computer 45,000
e. Preliminary & Pro- 68,000
Operative Exp.
f. Land & Building 12,45,000 20,23,000
2) Working Capital 19,86,400`
(2 months)
Total Project Cost 40,09,400
Round about to Say 40,10,000
29

30. Finance is the lifeblood for any unit. All transaction &
production process revolve around the finance. Due to its location the
financial facilities are easily available & Government. Also provides loans
at subsidized rates. The unit will collect its required funds in following
ways.
No. DETAILS Rate Amount
1. Own Capital (60 %) 9% 24,06,000
2. Borrowed Capital (40 %) 11 % 16,04,000
Total 40,10,000
30

31. No. PARTICULAR 1st Year 2Nd Year
50% 100 %
1 Own Capital 2,16,540 2,16,540
2 Borrowed Capital 1,76,440 1,41,152
Total 3,92,980 3,57,692
No. PARTICULAR 1st Year 2nd Year
1 Opening Balance 16,04,000 12,83,200
2 Payment Of Principal 3,20,800 3,20,800
3 Payment of Interest 1,76,440 1,41,152
Total 4,97,240 4,61,952
31

32. No. Name Of Assets 1st year 2nd year
BUILDING
1 Building 9,75,000 8,77,500
Less : Depreciation @ 10 % 97,500 87,750
Depreciated Value 8,77,500 7,89,750
Plant & Machinery
2 Plant & Machinery 5,80,000 4,35,000
Less : Depreciation @ 25 % 1,45,000 1,08,750
Depreciated Value 4,35,000 3,26,250
Tools
3 Tools 25,000 21,250
Less : Depreciation @ 15 % 3,750 3,187
Depreciated Value 21,250 18,063
Computer
4 Computer 45,000 18,000
Less : Depreciation @ 60 % 27,000 10,800
Depreciated Value 18,000 7,200
Other Fixed Assets
5 Other Fixed Assets 60,000 51,000
Less : Depreciation @ 15 % 9,000 7,650
Depreciated Value 51,000 43,350
32

33. RAW MATERIAL REQUIREMENT
No. Particular 1st year 50 % 2nd year 100 %
Rs. Rs.
1. Gram & Gram 1,08,00,000 2,16,00,000
Dal (45,000 X 12 X 20) (90,000 X 12 X 20)
Total 1,08,00,000 2,16,00,000
33

34. Particular Amt. Amt.
Capacity of Machinery (Kg.) 10,80,000 10,80,000
Capacity Utilization 50 % 100 %
Production (Kg.) 5,40,000 10,80,000
Add : Opening Stock (kg.) - 54,000
Less : Closing Stock (kg.) 54,000 10,800
Kg. Sold 4,86,000 10,26,000
Selling Price (Rs.) 24.5 24
Total Rs. 1,19,07,000 24,62,400
34

35. PARTICULARS 1st year 2nd year
Capacity Of Machinery 10,80,000 Kg. 1,08,000 Kg.
Capacity Utilization 50 % 100 %
Production Quantity 5,40,000 kg. 10,80,000 kg.
Variable cost
Raw – Material 1,08,00,000 2,16,00,000
Labour 3,24,000 6,48,000
Utility 1,92,000 3,84,000
Other Expenses ( 40 % ) 72,960 1,45,920
Total Variable Cost 1,13,88,960 2,27,77,920
Variable Cost Per Unit 21.09 21.09
Fixed cost
Dep. On Building 97,500 87,750
Dep. On Plant & 1,45,000 1,08,750
Machinery
Dep. On Computer 27,000 10,800
Dep. On Tools 3,750 3,187
Dep. On Fixed Asset 9,000 7,650
Labour 4,20,000 4,20,000
Other Exp. (60 %) 1,09,440 2,18,880
Int. On Capital 3,92,980 3,57,692
Total Fixed Cost 12,04,670 12,14,709
Total Cost
V.C. + F.C. 1,25,93,630 2,39,92,629
Total Cost Per Kg. 23.50 26.65
35

36. DETAIL Price 1st year 2nd year
P.U. 5,40,000 9,00,000 Kg.
Kg.
Raw Material 20.0 1,08,00,000 2,16,00,000
0
Utility 0.40 1,92,000 3,84,000
Direct Wages 0.60 3,24,000 6,48,000
Prime Cost 21.0 1,13,16,000 2,26,32,000
0
Add : Factory Overheads
a) Personnel Manager 0.30 1,44,000 1,44,000
b) Depreciation 0.60 2,82,250 2,18,137
c) Repair & Maintenance 0.10 40,800 48,960
d) Miscellaneous Exp. 0.02 7,200 14,400
Factory Overheads 22.7 1,17,90,250 2,30,57,497
3
Add : Administrative
Overheads
1. Postage & Stationary 0.02 10,800 18,000
2. Telephone Expenses 0.10 42,000 70,000
3. Accountant 0.10 42,000 42,000
4. Peons 0.04 24,000 24,000
5. Computer Operators 0.06 30,000 30,000
6. Clerks 0.07 36,000 36,000
7. Finance Manager 0.30 1,44,000 1,44,000
8. Interest On Loan 0.40 2,16,540 2,16,540
9. Interest On Bank loan 0.30 1,76,440 1,41,152
Cost Of Production 25.2 1,25,12,030 2,37,79,189
5
Add : Opening Stock Of Beshan - 13,23,000
Less: Closing Stock
Cost Of Good Sold 2.45 13,23,000 26,46,000
22.8 1,09,70,590 2,23,15,037
Add : Selling & Dist. Overheads
Advertisement 0.03 14,400 27,000
36

37. Transport 0.15 67,200 18,000
Selling & Distribution Cost 23.0 1,10,52,190 2,25,22,037
0
Profit 1.50 8,54,810 21,01,963
Sales 24.5 1,19,07,000 2,46,24,000
0
PARTICULAR 1ST year 2nd year
Rs. Rs.
(A) Total Sales 1,19,07,000 2,46,24,000
Cost Of Operation
Raw – Material 1,08,00,000 2,16,00,000
Utility 1,92,000 3,84,000
Wages 3,24,000 6,48,000
Total Cost 1,13,16,000 2,26,32,000
Add : Op. Stock - 13,23,000
Less : Closing Stock 13,23,000 26,46,000
37

38. (B) Total Operating Cost 99,93,000 2,13,09,000
(C) Gross Profit [ A – B] 19,14,000 33,15,000
Indirect Expenses
Fixed 1,09,440 1,09,440
Variable 72,960 1,45,920
Salary Of Staff 4,20,000 4,20,000
Depreciation 2,82,250 2,18,137
Preliminary Exp.{W.D.} 10,200 8,670
8,94,850 9,02,167
(D) Total Indirect Exp.
(E) E.B.I.T. [C – D] 10,19,150 24,12,833
Interest of Owners Loan 2,16,540 2,16,540
Interest On Bank Loan 1,76,440 1,41,152
(F) Total Interest 3,92,980 3,57,692
(G) E.B.T. [E – F] 6,26,170 20,55,141
(H) Tax @ 35 % 2,19,160 7,19,300
(I) E.A.T. [G – H ] 4,07,010 13,35,841
Add : Depreciation 2,82,250 2,18,137
Less : Payment Of Installment 3,20,800 3,20,800
Net Cash Received 3,68,461 12,33,178
38

39. DETAILS 1st year
Rs.
Sales 1,19,07,000
Closing Stock 13,23,000
Total 1,32,30,000
Expenditure
Opening Stock
Purchase 1,08,00,000
Utility 1,92,000
Wages 3,24,000
Other Expense
a) Postage & Stationary 10,800
b) Repair & Maintenance 40,800
c) Advertisement & Publicity 14,400
d) Miscellaneous Exp. 7,200
e) Telephone Exp. 42,000
f) Transport 67,200
Salary 4,20,000
Depreciation
a) Building 97,500
b) Plant & Machinery 1,45,000
c) Tools 3,750
d) Computer 27,000
e) Fixed Assets 9,000
Preliminary Exp. {W. D} 10,200
Interest
a) Own Loan 2,16,540
b) Borrowed Loan 1,76,440
Income Tax 2,19,160
Profit After Tax 4,07,010
Total 13,23,000
39

40. DETAILS 1st year
Rs.
Liabilities
Own Capital 24,06,000
Net Profit 4,07,010
Loan Borrowed 16,04,000
Less : Loan Repayment 3,20,800
Net Loan Borrowed 12,83,200
Creditors 50,000
Total 41,46,210
Assets
Fixed Asset 19,55,000
Less : Depreciation 2,82,250
Net Assets 16,72,750
Debtors 6,11,660
Closing Stock 13,23,000
Preliminary Expenses 68,000
Less : Written Down 10,200
Net Preliminary 57,800
Cash 2,00,000
Bank Balance 2,81,000
Total 41,46,210
40

41. Net Profit Ratio :~ Net Profit After Interest & Tax X 100
Sales
= 4,07,010 X 100
1,19,07,000
= 3.42 %
Gross Profit Ratio :~ Gross Profit X 100
Sales
= 19,14,000 X 100
1,19,07,000
= 16.07 %
Return On Investment :~ EBIT X 100
Sales
= 10,19,150 X 100
40,10,000
= 25.40 %
41

42. Cost Of Capital :~ Interest On Capital X 100
Capital Employed
= 3,92,980 X 100
40,10,000
= 9.80 %
ROI is hire Than COC , So We can say that Project is viable.
42

43. Break even analysis refers to a system of determination of
that level of activity where total cost equals total revenue, Boarder
interpretations refer to that probable profit at any level of activity. The
relationship among cost of profit, volume of production, profit & sales
value established by Break Even Analysis. The Point of sales at which
there is neither profit nor liss is regarded as BEP. At this point income
equals expenditure. If production is enhanced beyond this level, Profit
shall accrue & if it is decreased, loss shall be suffered.
Following is the breakeven analysis of this project.
43

44. Contribution = Sales Price - Variable cost (P.U.)
= 24.5 - 21.09
= 3.41 Rs. Per Kg.
B.E.P. = Fixed Cost X Capacity Utilization
[ in unit] Contribution P.U.
= 12,04,670 X 50 %
3.41
= 1,76,638 Kg.
Contribution = Fixed Cost - Profit
= 12,04,670 + 4,07,010
= 16,11,680 Rs.
44

45. B.E.P. = Fixed Cost X Capacity Utilization
[ in % ] Contribution
= 12,04,670 X 50 %
16,11,680
= 37.37 %
P. V. Ratio = C X 100
S
= 16,11,680 X 100
1,19,07,000
= 13.50 %
45

46. Machinery :
JK PVT. LTD.
Puna Highway
Industrial Area.
MUMBAI
Raw Materials :
Dalal Narendra Popat
Canvassing Agent,
Kirana Market , Kothari Bazar,
AKOLA (M.S.)
M/s. DEEPAK CANVASING AGENT
CANVASING AGENT
NATARAJ CHAMBER,BARADAN GALI
DANAPITH,
RAJKOT- 360001
M/s. VALAJI MADHAVAJI
MARKETING – YARD
RAJKOT
46

47. Success lies in the constancy of purpose. From the very
beginning it has followed the above punch lines. No doubt it is a small-
scale unit, but from the viewpoint of production. Marketing, profits,
services, etc. This unit will prove to be a successful unit. It is truly said
that, “Knowledge & motivation coupled with sustained efforts is the
recipe of success.” In any field, success demands lots if efforts,
Knowledge, guidance and the most important thing motivation. Beshan is
a food product, seeing the growth of its market it has a definite bright
future.
In short, innovative decision making, goal setting, drive &
dynamism sums up the achievement of PC Pvt. Ltd Where all seven “S”
of management viz. “System”, “Strategy”, ”Structure”, “Service”, “Staff”,
“Skill” & “Style” are blended into a new stature.
47