1. Table of Contents
Sr.no. Particular Pg.no.
1 Project at Glance 3
2 Owner’s & Promoter’s bio data 5
3 Location Justification 6
4 Product Introduction 8
5 Market Analysis & Market Competition 9
6 Production Process & Schedule 10
7 Financial Details of Project 14
8 Financial Arrangement & Sources of Finance 19
9 Profitability of Project 20
10 Project Summary 25
11 Break Even Point 26
12 Fund Flow Statement 28
13 Projection For Five Year’s 29
14 Advancement & Future Prospects 30
15 Conclusion 31
PREFACE
1

2. Management is a field which requires both managerial & practical knowledge.
Practical knowledge helps students to develop the managerial skill & provide
experience.
So far as syllabus concerned, students of M.B.A. has to prepare “BUSINESS
PLAN” with a view to educate the students of management. Students become aware
about the formalities needed to establish a business unit. The object of this report is
to persuade the officers of financial institute that project proposal will be well
furnished & also will be efficient & economically viable. So there is no chance of
insolvency & finance provided will not be wasted.
With a view to fulfill the importance of the BUSINESS PLAN, I have made
this report on “TOOTH BRUSH”. The information laid in this report are enough for
establishing an industry of the said product & fulfilling document requirement to
financial institution for receiving mentioned finance.
ACKNOWLEDGEMENT
2

3. I am very thankful to all who have helped me in preparing this report. I am
very much happy to present this BUSINESS PLAN expecting that you will
acknowledge it. I am thankful to advisor who provided me all the types of
information in preparing this BUSINESS PLAN.
I am extremely please to present this report to Dr.Rajesh Patel, who inspired
me to prepare this report in comprehensive manner. I am thankful for his co-
operation & assurance which became helpful to me in preparation of this BUSINESS
PLAN
I hope that all of this information which I have described in my BUSINESS
PLAN will satisfy you.
Place : - Junagadh Yours faithfully,
Date : -
(Rabadiya Ankit B.)
1. PROJECT AT A GLANCE
3

4. (1) Name of the unit :-
GOPAL INDUSTRIES
(2) Address for communication :-
Mr. Rabdiya Ankit B.
GIDC Estate,
Junagadh
(3) Type of the unit :-
Partnership firm
(4) Name of the product :-
Tooth Brush
(5) S.S.I. Registration No. :-
Applied for
(6) Subsidy Registration No. :-
Applied for
(7) Location of the unit :-
GOPAL INDUSTRIES
GIDC Estate,
Junagadh
(8) Owner’s Names & Addresses :-
 Mr. Rabdiya Ankit B.
4

5. “SURANI NIVAS”,
Gandhi Gram,
Junagadh
 Mr. Rabdiya Dhaval B.
“SURANI NIVAS”,
Gandhi Gram,
Junagadh
 Mr.Hirani pinakin A.
“RAJ NIVAS”,
Gandhi Gram,
Junagadh
2. OWNER’S/PROMOTER’S BIO-DATA
5

6. Name Age Academic Working Nature of Property Contri. Total
Qualification Experience Resp. Details in the share
unit in
Profit
Rabdiya 21 M.B.A. FRESH Finance Building 40 % 40 %
Manager
Ankit B.
Rabdiya 24 M.B.A. 2 year Marketing Land 30 % 30 %
Dhaval B Manager
Hirani 28 B. Sc. 3 year Production Machi. 30 % 30 %
Manager
pinakin A.
3. LOCATION JUSTIFICATION
6

7. Justification of location is an important consideration for the selection of site
where an entrepreneur wants to establish his industry. So, while selecting location for
the industry, all the important factors are considered to run the business successfully
& effectively.
The place of proposed manufacturing activity has been selected on the basis of
facilities enjoyed by it. The most important advantage of the location GIDC of
Junagadh is that it is situated in GIDC area where we get all necessary formalities
like road transportation, water facility, electricity & workers.
Another object for selecting this location is that Junagadh district is
industrially backward area. So, there are good chances of development of this area.
There are also employment opportunities for the people of this region & their living
standard can be improved. Also the marketing activity of our product can be made
effective in near marketing place.
Finally the most important advantage of this location is that the raw material
required for product will be easily available by the means of transportation facility.
Thus, the location of said unit is most suitable & beneficial which would reduce the
cost of our product.
 Infrastructural facilities :-
7

8. As we mentioned above that our unit is established in GIDC where it can get
all infrastructural facilities easily. We get following facilities of infrastructure which
make our product more effective.
 Road facility
 Water facility
 Power facility
 Transport facility
 Manpower facility
4. PRODUCT INTRODUCTION
8

9. Toothbrush is a product which plays a vital role in our daily routine. When we
sleep in the night i.e. before sleeping & when get up in morning i.e. after sleeping,
the first thing which we need is Toothbrush.
Now a day’s people adopt modernization & urbanization, so they use
toothbrush instead of simple “DATAN” because of more importance given to dental
care & hygiene of teeth. It gives us a protection from many tooth disease & make our
teeth & mouth clean.
Today, non-availability of datan in urban areas, people take toothbrush which
is the conventional method of tooth cleaning. There are various types of tooth brush
available. The classification of toothbrush is mainly on the age group of users i.e.
Baby, Junior & Adult.
5. (A) MARKET ANALYSIS
9

10. Toothbrush has become daily requirement of each & every people because of
the awareness of dental care & hygiene of teeth. So it is quite easy to introduce in
market. The market status of toothbrush is increased day to day. Each & every person
need toothbrush in daily use. So its marketing activity can be made in wide spread
area. Thus, there are greater chances of marketing performance.
It is widely used in rural area also. Today people are aware about dental care
so there is a great demand for toothbrush. Therefore item can be safely termed as
mass consumption item.
(B) MARKET COMPETITION
There are different types of toothbrush available in market but due to quality &
comfortless of this toothbrush, it can be helpful to complete with the competitors. In
market 70 % of toothbrushes are of multinational companies & 30 % of local
companies. So, we have to compete with the 30 % of competitors.
6. (A) PRODUCTION PROCESS
10

11. The production process of our product toothbrush is described in following
points :
 Cellulose acetate moulding powder is mixed with a suitable dyestuff &
dried or polypropylene is fed into the hopper of an automatic injection moulding
machine.
 The material melted & injected into the multy cavity mould machine where
it takes the shape of tooth brush handles.
 Tooth brush handles thus obtained are put into automatic tooth brush
making machine for boring, bristle filling & tightening of bristle by fine steel or
brass wire is done.
 The bristles are then trimmed to proper shape. Therefore brushes are
packed.
Mainly there are 3 important features of our product :
 Unique V shape head.
 Thumb grip for comfortable brushing.
 Angular handle easily reaches all corners of the mouth.
11

12. The product mix of our product is given below :
SR. NO. PRODUCT RATE
1 Ordinary Tooth Brush 12
2 Extra Bristles Brush 15
3 Baby Brush 10
(B) PRODUCTION SCHEDULE
12

13. In our unit, there are two shifts running for production purpose per day. There
are 25 days of running the production activity in a month. So, 300 days production
unit works in a year. In a day there are two shifts from 8 : 00 a.m. to 4 : 00 p.m. &
4 : 00 p.m. to 12 : 00 p.m.
(i) Installed capacity :-
The installed capacity of our unit is mentioned as under :
SR. NAMEOF RATE DAILY MONTHL YEARLY TOTAL
NO. PRODUCT PROD. Y PROD. PROD. VALUE
1 Ordinary Brush 12 300 7,500 90,000 10,80,000
2 Extra Bristles 15 500 12,500 1,50,000 22,50,000
3 Baby Brush 10 400 10,000 1,20,000 12,00,000
TOTAL 1,200 30,000 3,60,000 45,30,000
1 month = 25 days 1 year = 300 days
(ii) Utilised capacity (75 %) :-
13

14. SR. NAMEOF RATE DAILY MONTHL YEARLY TOTAL
NO. PRODUCT PROD. Y PROD. PROD. VALUE
1 Ordinary Brush 12 225 5,625 67,500 8,10,000
2 Extra Bristles 15 375 9,375 1,12,500 16,87,500
3 Baby Brush 10 300 7,500 90,000 9,00,000
TOTAL 900 22,500 2,70,000 33,97,500
1 month = 25 days 1 year = 300 days
7. FINANCIAL DETAILS OF A PROJECT
14

15. (A) Land :-
(1) Survey No. :- …
(2) Details of N.A. permission No. :- …
(3) Details of the land :-
SR. NO. PARTICULARS AREA RATE AMOUNT
Squ. Ft.
1 Land: Open 1,500 1,000 15,00,000
2 Land development 2,50,000
expenses
TOTAL 1,500 - 17,50,000
15

16. (B) Details of Building & Premises :-
SR. PARTICULARS CONST. AREA RATE AMOUNT
NO. TYPE Squ. Ft.
1 Factory shed R.C.C. WORK 500 450 2,25,000
2 Godown shed R.C.C. WORK 200 400 80,000
3 Office Room R.C.C. WORK 300 525 1,57,500
4 Staff Quarters R.C.C. WORK 300 900 2,70,000
5 Bore Well R.C.C. WORK 35,000
6 Water Tank R.C.C. WORK 10,000
Free Space R.C.C. WORK 200 -
TOTAL 1,500 7,77,500
(C) Details of Machinery :-
16

17. Various types of machineries used for producing toothbrushes of different
types are described as under :
SR. NAME OF QTY. SUPPLIER ELE. AMOUNT
NO. MACHINERY CONS
UMED
H/P
1 Injection 1 M/S. R.H. Windsor 3 6,00,000
Moulding (India) Ltd., U. Road,
Machine Industrial Estate,
Thanna. Dist. Thanne,
Maharashtra
2 Preheating 1 M/S. Engless India 2 10,000
Ovan Machine Tools Ltd.,
Faratola Road,
Calcutta – 53
3 Drilling Bristle 1 M/S. Boolani 2 4,50,000
Machine Engineering
Corporation, 402,
Prabhadevi Industrial
Estate, Savarkar Road,
Mumbai - 18
4 Scrap Grinder 1 Kolsite Machine Fabric 3 10,000
Ltd., Veena Desai Road,
Mumbai.
5 Multicavity 1 M/S. Antan Zahoransky, 2 45,000
Mould Todtnau, West Germany.
Machine
11,15,000
+ Installation + 35,000
Charges
TOTAL 12 12,50,000
(D) Fixed Capital Cost of a Project :-
17

18. SR. NO. PARTICULARS AMOUNT
1 Land 17,50,000
2 Building 7,77,500
3 Machinery 11,50,000
4 Furniture 42,000
5 Preliminery expense 25,000
TOTAL FIXED COST 37,44,500
(E) Working Capital Requirements :-
18

19. WORKING CAPITAL STATEMENT
SR. PARTICULARS DAY/MONTH AMOUNT
NO.
Current Assets :-
1 Stock of Raw Material 20 days 1,70,000
2 Stock of Finished Goods 1 month 1,00,000
3 Debtors 1 month 66,500
4 Cash & Bank 1 month 50,000
Total Current Assets 3,86,500
Less : Current Liabilities :-
5 G.E.B. Bill 2 months 20,000
6 Creditors 1 month 34,000
7 Other Misc. Exp. 1 month 15,000
Total Current Liabilities 69,000
TOTAL 3,17,500
(F) Total Cost of a Project :-
SR. NO. PARTICULARS AMOUNT
1 Total Fixed Cost 37,44,500
2 Working Capital 3,17,500
Total Cost of a Project 40,62,000
8. (A) FINANCIAL ARRANGEMENTS
19

20. SR. PARTICULARS AMOUNT G.S.F.C. OWN SUBSIDY
NO. RS. LOAN CAPITAL
1 Land 17,50,000 - 14,25,000 3,25,000
2 Building 7,77,500 2,74,500 3,00,000 2,03,000
3 Machinery 11,50,000 6,66,000 2,00,000 2,84,000
4 Furniture 42,000 42,000 - -
5 Preli. Expenses 25,000 - 25,000 -
6 Working Capital 3,17,500 2,17,500 1,00,000 -
TOTAL 42,62,000 12,00,000 20,50,000 8,12,000
As our industrial unit will be located in the backward area, we would get near
about 20 % subsidy. Long term loan @ 10 % interest will be raised from Gujarat
State Finance Corporation. Remaining amount of will be own contribution.
(B) SOURCES OF FINANCE
SR. NO. PARTICULARS AMOUNT
1 Loan from G.S.F.C. (10 %) 12,00,000
2 Subsidy 8,12,000
3 Own contribution 20,50,000
TOTAL 40,62,000
9. PROFITABILITY OF A PROJECT
20

21. (A) Details of Sales :-
SR. PARTICULARS QUANTITY RATE AMOUNT
NO.
1 Ordinary Tooth Brush 65,000 12/unit 7,80,000
2 Extra Bristles Brush 1,05,000 15/unit 15,75,000
3 Baby Brush 94,250 10/unit 9,42,500
TOTAL SALES 2,64,250 32,97,500
(B) Details of Raw Materials including Packaging :-
SR. NO. PARTICULARS QUANTITY RATE AMOUNT
1 Polypropylene 4,000 55 2,20,000
2 Cellulose Acetate
Moulding Machine 2,000 70 1,40,000
3 Wire 2,500 50 1,25,000
4 Nylone Bristles 3,000 50 1,50,000
5 Packaging material 2,000 30 60,000
TOTAL 13,500 - 6,95,000
(C) Details of Salary & Wages :-
21

22. SR. NO. PARTICULARS TOTAL NO. MONTHLY YEARLY
1 Manager 3 9,000 3,24,000
2 Peon 2 4,000 96,000
3 Supervisor 1 6,000 72,000
4 Skilled workers 10 2,500 3,00,000
5 Unskilled workers 8 2,000 1,92,000
9,84,000
+ 10 % Bonus 98,400
TOTAL 24 23,500 10,82,400
(D) Electricity Consumed :-
Horse Power  Working Hours per day  Total No. of working days  %
utilized capacity  Rate per unit
= 13  8  300  0.8  10
= 2,49,600
(E) Insurance :-
22

23. SR. NO. PARTICULARS AMOUNT
1 Insurance 12,500
TOTAL 12,500
(F) Repairs & Maintainance :-
SR. NO. PARTICULARS YEARLY
1 Repairs 15,000
2 Maintainance 10,000
TOTAL 25,000
(G) Interest :-
23

24. SR. NO. PARTICULARS TOTAL RATE AMOUNT
VALUE
1 GSFC Loan 12,00,000 10 % 1,20,000
TOTAL 12,00,000 - 1,20,000
(H) Depreciation :-
SR. NO. PARTICULARS TOTAL VALUE RATE AMOUNT
1 Building 7,77,500 5% 38,875
2 Machinery 11,50,000 10 % 1,15,000
3 Furniture 42,000 10 % 4,200
TOTAL 18,35,000 1,58,075
(I)Administrative & Selling Expenses :-
24

25. SR. NO. PARTICULARS MONTHLY YEARLY
1 Payment to Accountant 4,000 48,000
2 Printing & Stationary 1,000 12,000
3 Telephone, Postage, etc. 2,000 24,000
4 Other expenses 1,500 18,000
TOTAL 8,500 1,02,000
(J) Sales Expenses :-
SR. NO. PARTICULARS MONTHLY YEARLY
1 Sales Commission - 1,13,250
2 Salesman’s Salary 6,000 72,000
3 Advertisement Expenses 3,500 42,000
4 Other expenses 2,000 24,000
TOTAL 11,500 2,51,500
10. PROJECT SUMMERY
25

26. SR. NO. PARTICULART AMOUNT AMOUNT
1 Sales 32,97,500
2 Less :-Raw Materials 6,95,000
3 Wage & Salary 10,82,400
4 Electricity 2,49,600
5 Repairs & Maintainance 25,000
6 Rent, Taxes & Insurance 12,500
7 Depreciation 1,58,075
8 Interest 1,20,000
9 Administrative Expenses 1,02,000
10 Sales Expenses 2,51,250 26,95,825
11 Profit 6,01,675
12 Less :-Income Tax @ 30 % 1,80,500
13 Net Profit after Tax 4,21,175
11. BREAK-EVEN POINT ANALYSIS
26

27. • FIXED COST :-
- Insurance 12,500
-Administrative Expenses 1,02,000
-Depreciation 1,58,075
-Interest 1,20,000
3,92,575
• VARIABLE COST :-
-Raw Material 6,95,000
-Electricity 2,49,600
-Wage & Salary 10,82,400
-Repairs & Maintainance 25,000
-Sales Expenses 2,51,250
23,03,250
 BEP = Fixed Cost
P.V. Ratio
 P.V. Ratio = Contribution  100
Sales
 Contribution = Sales – Variable Cost
= 32,97,500 – 23,03,250
= 9,94,250
 P.V. Ratio = Contribution  100
27

28. Sales
= 9,94,250  100
32,97,500
= 30 %
 BEP = Fixed Cost
P.V. Ratio
= 3,92,575
0.30
= 13,08,583 Rs.
Our plan estimated that the sales of our product will increase at 4 % during
next 2 years per annum. While in next three years the sales of our product will
increase at 5 % per annum. While we will try to maintain the variable cost as
possible as in future.
12. FUND FLOW STATEMENT
28

29. Sources Amount Application Amount
Own capital 20,50,000 Building 5,74,500
GSFC Loan 12,00,000 Land 14,25,000
Machinery 8,66,000
Furniture 42,000
Preli. Exp. 25,000
Working Capital 3,17,500
32,50,000 32,50,000
13. PROJECTION FOR 5 YEARS
29

30. YEAR I II III IV V
PARTI.
Sales 34,29,400 35,66,576 37,44,905 39,32,150 41,28,758
-Vari. Cost 23,72,348 24,43,518 25,41,259 26,42,910 27,48,626
Contribution 10,57,052 11,23,058 12,03,646 12,89,240 13,80,132
-Fixed Cost 4,67,575 4,82,575 4,97,575 5,17,575 5,67,575
Profit 5,89,477 6,40,483 7,06,071 7,71,665 8,12,557
PV Ratio 31% 31% 32% 33% 33%
BEP(Rs.) 15,08,306 15,56,694 15,54,922 15,68,409 17,19,924
14. ADVANCEMENT & FUTURE PROSPECTS
30

31. At present the application of toothpaste or dental cream is always with aid of
brush. Use of brush is always recommended by dental experts as a more effective
way of ensuring proper dental care. Tooth brush is being used by the human
population world over. So there is a great demand of toothbrush.
Initially our organization’s production capacity is 75 % by which we will try to
increase our production capacity. In future, we will also try to increase our sales at 5
% to 7 % per annum & attempt to decrease our variable cost.
Our future plan is to attract the middle class people who want good quality
products at a reasonable cost. We will make our best effort to improve the quality of
the product to satisfy consumer & to increase the marketing area effectively.
15. CONCLUSION
31

32. As the importance of preparing “BUSINESS PLAN” to guide about
establishing the industrial unit, Students of management are required to prepare this
report as a part of syllabus in M.B.A. Students also get knowledge about the
procedure required in establishing industrial unit.
This type of work i.e. project work plays very vital role for making the
students aware about it & they get practical knowledge in this type of field work. So
I have made good attempt to prepare this BUSINESS PLAN. I have also collected all
the informations from various sources which are required to BUSINESS PLAN.
The project work is essential for the career of students. Students get
encouragement by this precious work. They get guidance from all the persons
concerned in this type of work & get the views of professors to do the project work.
So, I hope that the informations provided in this report to establish an industrial unit
are satisfactory & I will be encouraged to work more efficiently in this type of field
work.
32