1. A
Business plan
ON
Prepared By:
parmar urvi h.
Batch: 2012-13,
EnrollmEnt no.117360592066
mBa SEmEStEr III
Under guidance of
Dr.RAJESH PATEL.
Institute:
N.R.Vekaria institute of business management
studies,
Junagadh-362001
1

2. PREFACE
The concept of entrepreneurial studies has appreciably
changed in nature & concept over the years. Entrepreneurial
development & management has come to be recognized
globally as the key to rapid & sustainable economic
development as well as the welfare & progress of mankind
The small scale industries occupies an important
position in the industrial economy of the country Because of
advantages in terms of low investment. High potential for
employment generation, etc.
As I am student of M.B.A.. a professional degree course.
Include one subject called Entrepreneur & Management of
small business. which guide the student how to become a
good entrepreneur & what factors are keeping in their mind
while setting up the small scale industries.
I have an immense pleasure in presenting my views after
doing hard work in a very clear – sense. I have tried my level
best to make this business plan excellent. I hope that this PPR
will obviously satisfy the subject requirement & also provide
a general look of report.
2

3. ACKNOWLEDGEMENT
I feel great pleasure that I get an opportunity to present
my business plan before you.
Firstly, I am thanking to my professors, He has tried
very hard & put lots of effort to guide me I am also thankful
to him because he had put their valuable time to me.
And finally I am also very much thankful to my friends
& my parents who guided me during preparation of business
plan.
Date:30 oct. 2012
Place:junagadh
Signature
(Urvi Parmar.)
3

4. DECLARATION
I undersigned Parmar Urvi , the student of M.B.A. here
by declare that this business plan is my own work. It has
been prepared by me, under the guidance & direction of prof.
rajesh pate.
The work has not been previously submitted to any other
university for any other examination.
Date:30 oct.2012
Place: junagadh.
Signature
(Urvi Parmar.)
4

5. INDEX
SR. SUBJECT PAGE NO.
NO.
1 Introduction 5
2 Project at Glance 6
3 Implementation schedule 7
4 Promoters Background 8
5 Justification of Location 10
6 Product detail 12
7 Production process 17
8 Investment 18
9 Financial Details 19
10 Working capital 20
11 Cost of production 23
12 Turn over (sales) 24
13 Net Profit/ Profitability analysis 24
14 Ratio analysis 25
15 Total fixed cost 26
16 B.E.P. Calculation 27
17 Bibliography. 33
5

6. INTRODUCTION
The electronic quartz analog clock has brought a
revolution in the clock industry. The quartz clock were
introduced in the Indian market in 1977-78 & since then
market as well as production in India has been growing at a
tremendous rate some of the main features of the quartz
clock are:
 High accuracy
 No winding required
 Work in any position
 Very low power consumption
Hardly any service required & the longer life of the
clock
A typical quartz clock consists of the following
components:
(1) Mainly electronic circuit block (with components
like IC, Quartz crystal, Capacitors, etc. mounted on a printed
circuit board)
(2) Stepper motor (consisting of coil, stator & rotor)
6

7. PROJECT AT GALNCE
Unit Name: Bharat electronic quartz Clock
Form of Business
organization: Partnership Firm.
Location of Unit: 22- GIDC,
Metoda,
Kalavad Road,
Dist. Rajkot
Communication
Address: 22- Jimmy Tower
Gondal Road,
Rajkot – 360002
Gujarat (India)
Product: Electronic Quartz
Product Name: Bharat Quartz
SSI reg. No.: Application has been made
7

8. IMPLEMENTATION SCHEDULE
The major activities in the implementation schedule
have been listed & the average time for implementation of
the project is estimated at 12 months.
(1) Preparation of Project Report: 1 month
(2) Registration & other formalities: 1 month
(3) Sanction of loan by financial institutions:3 months
(4) Plant & machinery
(a) Placement of orders 1 month
(b) Procurement 2 months
(c) Power connection 2 months
(d) Installation 2 months
(5) Procurement of row materials: 2 months
(6) Recruitment of technical personnel, etc 2 months
(7) Trial production: 11 months
(8) Commercial production: 12 months
8

9. PROMOTERS BACKGROUND
(1) Name : Parmar Urvi H.
(2) Age : 22 years
(3) Educational/
Qualifications : MBA.
(4) Working Area : Promoters
(5) Address : “JYOTI”
150. Feet Ring Road,
Ravi Ratna Park
Block -09 Room –No.102
Rajkot 360007
9

10. (1) Name : Bhadla maushmi p.
(2) Age : 22 years
(3) Working area : Marketing Manager
(4) Educational/
Qualifications : MBA (Marketing)
(5) Experience : fresher
(6) Address : 150 feet ring road,
Shastri nagar,
Rajkot – 360007
(7) Investment of
Both partner : 50 : 50
10

11. JUSTIFICATION OF LOCATION
Plant location refers to the area where the plant will
operate to produce goods & services. The selection of an
appropriate location enables the factory to operate smoothly.
Efficiently with the minimum cost. It is estimated that
manufacturing & distribution cost may vary to an extent of
10% simply by virtue of the choice of plant location.
The factory is the SSI units & is located in GIDC area
i.e. Gujarat industrial & development corporation. Because of
the units situated in GIDC, the units enjoy all incentives &
certain subsidy made available to all industrial units. The
result of this is reduction of cost of production.
There are number of factor should be considered while
selecting the best site for locating the factory
(1) Near ness to market : The electronic quartz is a
consumer goods. If the company is near to the market then t
come to know their customer choice & preference &
accordingly they adjust in their quartz.
(2) Man power : Man power is the main & important
part of any factors which keep the other activities in run. All
type of skilled workers are to be available in GIDC area &
also from the village which is near to it.
(3) Utility Service: Utility service like.
11

12. (a) Electrical supply is easily available & at cheaper
rates in GIDC area.
(b) Water supply is easily available
(4) Transportation: Because of the units situated in
G.I.D.C. the mode of transportation is road & easily
available & the rate prevailing in such are is also cheaper
than other location.
(5) Communication: For communication purpose, the
GIDC area is the best area because the telephone connection
is already been made to the Telecom Department. A post
office is already operating & other facilities like Telex & Fax
are also available & provided for the smooth functioning the
units.
(6) Raw materials: Because our company is
manufacturing electronic quartz clock. So the raw materials
required is the semi finished goods which are easily available
in GIDC area at a cheaper rate.
12

13. PRODUCT DETAILS
A typical electronic quartz clocks consists of the
following components/ parts & they are as describe bellows:
This consists of mainly electronic circuit block with
components like I.C. quartz crystal, capacitors etc. mounted
on a printed circuit board & steeper motor (consisting of will
stator & motor)
Mechanical components consisting of gear & upper &
lower covers to hold the movement parts.
Appearance parts consisting of cabinet, hands & dial.
13

14. Production PROCESS
The process of assembly of clock is divided into two
parts
(a) Assembly of Movement
(b)Assembly of Clock
(a) Assembly of Movement: The components viz.
electronic circuits block (ECB), stepper motor, gear &
movement covers require to be assembled in dust free
atmosphere. The gears in most of the cases require being
lubricant. The connecting wire E.C.B. have to be soldered to
the battery clips & the coil is to be soldered to the ECB.
Before the movement is assembled, the ECB should be
tested on the universal Timer Quartz Analog tester & if any
adjustment for the time accuracy is required the same should
be carried out.
The complete assembled movement can also be
procured from out side i.e. from the units who are exclusively
assembling / manufacturing there movements.
(b) Clock assembly: The finished module is now
fitted into cabinet case which is fitted with a dial. Next the
hands are mounted on the movement & then the glass &back
cover of cabinet are fitted. The needles have to be properly
fitted so as to be at accurate positions on dial while showing
time. Finally the battery putted in to the clock is put for
testing for at least 2 days before.
14

15. FINANCIAL DETAILS
(1) Land & Buildings Description:
No. Description Per Sq. M. Amount
1 Built up area 100 50,000
@ 500 sq. meter
2 Office & Stores 25 12,500
@ 500 sq. meter
3 Working shed 75 37,500
@ 500 sq. meter
Total - 1,00,000
(2)Machinery and Equipment
Sr. Description Qty. Rate Total
No.
1 Quartz clock Tester 2 50,000 1,00,000
2 Multimeters 3 1,000 3,000
1,03,000
3 Electrification&installation 10,300
charges@10% of cost of
Machinery & Equipment
4 Totalcost of machinery & 1,13,300
equipment
5 Cost of office 60,000
equipment & fumitures
6 Cost of tools / jigs / fixtures 10,000
7 Pre –operative expenses 10,000
TOTAL - 1,93,300
15

16. WORKING CAPITAL (PER MONTH)
(1) Staff & Labour (Technical, office , sales & other)
Sr. No. Category No. Salary Total
1 Manager 1 10,000 10,000
2 Skilled workers 2 5,000 5,000
3 Semi – skilled 1 1,000 1,000
4 Sales - assistant 1 2,000 2,000
5 Typist / clerk 1 1,500 1,500
6 Peon / chowkidar 1 1,000 1,000
20,500
7 Perquisites(15% salary) 3,075
Total salary 23,575
Say 23,600
(2) Raw materials (per month on single shift basis)
Sr. Description of Components Qty. Rate Total
No.
1 Quartz movement mechanism 1 32 32
2 Cabinet with dial & 1 40 40
hands with packing
Total - - 72
16

17. Total raw material / components required for one month
=3000 X 72
=2, 16,000
(3) Utilities (Per month):
Sr. No. Description Total
1 Power – 500 unit @ 1.60 P.U. 800
2 Water 200
Total 1,000
(4) Other Contingent expenses (per month)
Sr. No. Description Total
1 Advertisement & publicity 3,000
2 Rent 5,000
3 Transport 10,000
4 Consumable stores 500
5 Insurance & taxes 200
6 Stationery 500
7 Postage & telephone 1,000
8 Repair & maintenance 500
17

18. (5) Total working capital require (per month)
Sr. No. Particular Total
1 Staff & labour 25,600
2 Raw material 2,16,000
3 Utilities 1,000
4 Other contingent expenses 20,700
Total 2,61,300
(6) Working capital for 3 Months:
= 2, 61,300 X 3
= 7, 83,900
(7) Total investment:
Fixed capital 1, 93,300
Working capital 7, 83,900
(3 months)
TOTAl 977,2
18

19. COST OF PRODUCTION (PER ANNUM)
Sr. Descriptions Amount
No.
1 Total recurring expenditure 29,77,200
2 Dep. On machinery & equipment @ 10,300
10%
3 Dep. On office equipment @ 20% 12,000
4 Dep. On tools / jigs / fixtures @ 20% 2,000
5 Interest on total investment 1,95,440
Total 31,96,940
19

20. TURNOVER (PER YEAR)
Sr. Sales Qty Rates Value (Rs)
No. (Rs)
1 Electronic Quartz 3800 100 38,00,000
Analog clocks
NET PROFIT OF THE YEAR (PROFITABILITY
ANALYSIS)
Particulars Amount
Sales 38,00,000
Less: cost of production 31,96,940
Total 6,03,060
20

21. RATIO ANALYSIS
Net Profit Ratio: (NPR)
NPR = Profit X 100
Sales
= 6, 03,060 X 100
38, 00,000
= 15.87%
Rate of Return (ROR)
ROR = Profit X 100
Total capital investment
= 6, 03,060 X 100
9, 77,200
= 61.71%
21

22. TOTAL FIXED COST (FC)
Sr. Particular Amount
No.
1 Depreciation 24,300
2 Rent 60,000
3 Interest on capital investment 1,95,440
4 Insurance 2,400
5 40% of salary & wages 49,920
6 40% of other contingent expenses 79,200
Total 4,11,260
22

23. BREAK EVEN POINT (B.E.P.)
B.E.P. = Fixed cost X 100
Fixed cost + Net Profit
= 4, 11,260 X 100
4, 11,260 + 6, 03,060
= 4, 11, 26,000
10, 14,320
= 40.54 %
23

24. BIBLIOGRAPHY
1 Production & Operation Management
-Chunawalla Patel
2 Financial Management
- By Khan & Jain
24

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