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Vishal bhayani roll no.10
1. SKY SHAMPOO PRIVATE COMPANY
BUSINESS PLAN ON
SHAMPOO PRODUCT
VISHAL BHAYANI
11/24/2010
2. A
PRODUCT PROJECT REPORT
ON
SKY SHAMPOO PVT. LTD.
-: Prepared by:-
VISHAL BHAYANI
M.B.A. (FINANCE)
Roll no: -10
Academic Year
2010-11
- : Submitted To: -
N.R. VEKARIYA INSTITUTE OF BUSINESS MGT. STUDIES
,JUNAGADH
Guided by: -
Dr. RAJESH PATEL
2
3. DECLARATION
I undersigned Mr. VISHAL R. BHAYANI the student of
M.B.A., here by declare that the project work presented is my own
work and has been carried out and accomplished under
N.R.VEKARIYA INSTITUTE OF BUSINESS MGT.STUDIES.
This work has not been previously submitted to any other
university or any other examination.
Date: - Signature
VISHAL BHAYANI
3
4. PREFACE
“PRACTISE MAKES A MAN PERFECT”. As a student I
have made a product project report on my own so that I can apply
my knowledge in practical report and get knowledge related to
business.
I have made all department wise information like production,
market, finance, etc.so I can apply it in practical also.
This report is also very useful for students as prescribed by
Saurashtra University. We have to prepare the product project
report in the subject of “Entrepreneurship Management of Small
Scale Industries”. By preparing this report students can apply their
knowledge and can get theoretical knowledge about management
of S.S.I. As it is a part of syllabus I have prepared the product
project report on Shampoo.
4
5. ACKNOWLEDGEMENT
Preparation of project report is necessary for me to know the
practical knowledge which is useful to establish our own unit.
Some people have helped me in the preparation of this report.
I am thankful to all those people who have helped me
directly or indirectly in the preparation of this report.
I heartily thank Mr. Rajnikant who guided me in getting
information about shampoo. And I also thank Miss Kausha who
provided necessary guidelines relating to the project.
I am also thankful to my family members and friends for
their valuable support.
5
6. INDEX
S.R. PARTICULARS PAGE
No. No.
01. Introduction. 8
02. Product at a Glance. 9
03. Implementation Schedule. 10
04. Partners Background. 11
05. Organizational Structure. 13
06. Justification Of Location. 14
07. Product Details. 16
08. Raw Materials & its Sources. 18
09. Manufacturing Process. 21
10. Name and Address Of Raw Materials Suppliers. 19
11. Name and Address Of Machinery Suppliers. 23
12. Market Analysis. 25
13. Competitors And Strategy Against Competitors. 27
14. Sales Details. 28
15. Financial Details. 29
16. Fixed Assets. 36
17. Profit Analysis. 38
18. Break Even Point. 39
19. Cost Analysis. 40
20. P&L A/c And Balance Sheet. 41
21. Staff & Labour. 43
22. Risk Factor. 44
23. Future Plans. 45
24. Conclusion. 46
25. Bibliography. 47
6
7. INTRODUCTION
Cottage and small scale industries have flourished in India
since the early times. Even today they are a principle source of
income and employment. And their product find ready market in
India as well as abroad.
Small scale industries in India roughly provide employment
to about 4.4 million people and constitute a large position of the
7
8. country’s exports. The Government of India is well aware of the
importance of small scale industries in our economy and growth of
small scale industry. All India Boards give technical, financial and
other relevent guidance to small scale industries along with the
benefits and concessions.
PROJECT AT A GLANCE
In ‘Project at a Glance’ general information about the unit
producing the product named “SHAMPOO”.
This information is given below:
Name of the unit: - SKY Industries Pvt Ltd.
Address: - GIDC Aji-2,
8
9. OP Road,
Rajkot (Gujarat) – 360 001
Type of unit: - Partnership Firm.
License No: - Application has been made for obtaining.
Small Scale Industry: - Application has been made for
Register No. obtaining.
Name of product: - Shampoo.
Owner of unit: - Shyara Chandresh P.
Vaghamshi Narendra N.
Paradra Rakesh J.
Brand name: - SKY Shampoo.
IMPLEMENTATION SCHEDULE
Here the timing of every activity is listed. The major activity
and average time for it is estimated as under:
1. Preparation of project report - 1 month
2. Registration Formula - 1 month
3. Sanction of loan - 1 month
4. Plant & Machinery - 15 days
9
10. 5. Procurement of raw material - 15 days
6. Recruitment of Personnel - 1 month
7. Trial Production - 2 month
8. Commercial Production - 2 month
9. Building Construction - 3 month
PARTNERS BACKGROUND
1st Partne
Name: - Shyara Chandresh R.
“Shree Krishna”,
Vaniya Vadi,
Rajkot – 360 002
Mo: 99242 00147
Age: - 25 years.
10
11. Qualification: - M.B.A (with Adv. Marketing)
Division of Responsibility: - Marketing and H.R.D
Department.
Capital Investment: - 40% (of owned capital)
2nd Partner
Name: - Vaghamsi Narendra N.
“Krupa”
Shiv Park – 1
150 ft Ring Road,
Rajkot – 360 005.
Mo: 98988 21974
Age: - 30 years
Qualification: - M.E (chemical) (with 5 yrs experience)
Division Responsibility: - Production and R&D
Department.
Capital Investment: - 30% (of owned capital)
3rd Partner
11
13. JUSTIFICATION OF LOCATION
Industry location is nothing but establishing an industry at a
particular place.
13
14. Enough care should be taken for choosing location because
once a plant location is chosen, it can not be changed in near future
or if changed it may prove to be costlier.
Following are factors affecting location:
1) Raw Material:
Nearness to source of raw material is an important
consideration for most of the industries. If raw material get
nearness transfer cost reduces.
Raw materials needed for the preparation of Shampoo
i.e. detergent, water, milk, etc can be easily available near to the
market.
2) Labor Supply:
Availability of working force or labor is also another
influencing factor for the location of industry. If skilled and
unskilled workers meet easily that affect pricing.
Aji – 2 GIDC is the area where we can get work force
easily. There were skilled and unskilled workers both. So we can
easily get worker.
14
15. 3) Proximity to Market:
Proximity to market may affect the cost. If market is
near than transportation cost may decline.
Market is near for shampoo so it may reduce cost of
transportation.
4) Finance:
The availability of finance at cheaper rate of interest
and adequate amount is also affecting the industrial location.
Near Aji – 2 there are many banks and financial
institutes so we can get less interest amt and easily.
5) Transport Facilities:
Transport services are required for raw material supply
and distribution of the finished product to the consumer.
There is a highway near to the location so transport
services are available easily.
6) Services:
15
16. Factors like value of service may affect the location,
where all necessary or basic service are easily available and may
reduce cost.
Near the area of the location services are available like
water, canteen facility, disposal of waste, etc...
PRODUCT DETAILS
A company can produce three different types of shampoo,
with different features.
(1) SKY Hair Fall Difference: -
16
17. This shampoo is for those people who want less hair
breakage and fall of hairs and dandruff free healthy scalp and also
with vitamins A, C and E.
*Breakage and fall condition after 2 weeks
Chart given below:
(2) SKY Strong: -
The use of this shampoo provides protection from
dandruff for people using it. It also makes the hairs stronger and
longer. It eliminates dandruff with every wash and contains
vitamin A, C and E.
17
18. *Dandruff reduction with every wash:
(3) SKY Soft: -
This shampoo contains amla, milk & proteins. It makes
hair thicker, shiny and makes them soft & strong.
18
19. RAW MATERIAL AND ITS
SOURCES
Raw material is the basic requirement for any production
unit. Final product has to be made by doing process on raw
material and then we get the ultimate product.
*Following Raw Materials are required for the production of
19
21. 01. Large Batch Material Provide: - A large Batch of shampoo is
made in drums. In this drum
all the materials are mixed.
02. Heat & Cooled Batch: - Batch of material has to be boiled at a
certain level. After that the heated
batch is then condensed/made cooled.
03. Quality Check: - Physical verification is done to make sure the
batch and color adjusted in shampoo.
21
22. 04. Filing Line Bottle: - A bottle can be arranged in hopper. Empty
bottles can be arranged in it.
05. Delivery of Shampoo: - A machine in which empty bottles are
arranged rotates and shampoo falls in
it.
06. Labeling: - An automatic machine is used for labeling the
bottles and for packing.
07. Boxing: - After labeling the bottles are either as per no of
pieces or in dozens into the boxes.
NAME AND ADDRESS OF
SUPPLIERS OR RAW MATERIALS
22
23. 1. M/s Dharmendra Chemicals,
4 – Jodhpur Main Road,
Ahmedabad.
2. Ankur Water Suppliers,
Aji – 2,
Rajkot.
3. Amit Detregent,
Bopal Bhuma,
Near Iskon Temple,
Ahmedabad.
NAME AND ADDRESS OF
MACHINERY SUPPLIERS
23
25. Present modern market is more important and complex. In
past the producers used to produce and sell the products as per
their will but in the present market condition the producer has to
produce the goods keeping in mind the desire of the consumers.
They have to provide the consumers, goods which are of better
quality, reasonable price and which are easily available
everywhere.
We try to achieve more market share and for that following
points are to be given more importance:
01] Quality: - Our first and main emphasize is on quality. If we
want to fight against the competitors then we would have to
provide even better quality then our competitors. By doing so
we can capture more share in the market.
02] Price: - Price of shampoo is reasonable. Because our target
market is upper, middle and lower class as shampoo is used
in day to day life.
03] Advertising: - Advertising is important for any product. If we
have to make consumer about the product then the most
effective way is the advertising. We are doing advertising
25
26. with T.V. and through retailers by providing them posters.
04] Distribution Channel: - A distribution channel is the
intermediary of manufacturer to producer. A shampoo is
used in day to day life, so we have to choose channel by
which consumer can get our product easily. We have
chosen as give below in the chart:
COMPETITOR AND COMPETITOR
STRATEGY
26
27. In the production of shampoo there may be made many
changes in its features as per the producers wish. So we have to
keep watch on competitor to know when they introduce new
shampoo with new features and design.
To fight against competitors our strategy is that we try to
improve our product with new features by adding new ingredients
like chandan, other vitamins, neem, tulsi, aritha, and other things
which are good for the health of the hair and which make hair
strong, long, soft, shiny and SKY.
The competitors of our company are mostly branded
manufacturers. They are listed as follows:
Lux
Clinic All Clear
Head & Shoulders
Clinic Plus
SALES DETAILS
27
28. Our sales target of selling shampoo is 22, 40,000 with
beginning because shampoo is used in day to day life so we can
sale more.
*Following are the Sales Details of Shampoo:
Sr Particulars Size Sales Selling Total Rs.
No. (ml) Quota Price
(pieces)
01. SKY Hair Fall 5 ml 6,00,000 2 12,00,000
40 ml 80,000 10 8,00,000
Defense
150 ml 40,000 30 12,00,000
Shampoo
02. SKY Strong 5 ml 4,00,000 3 12,00,000
40 ml 90,000 12 10,80,000
150 ml 50,000 35 17,50,000
5 ml 8,00,000 1 8,00,000
40 ml 1,00,000 10 10,00,000
150 ml 80,000 25 20,00,000
Total 22,40,000 1,10,30,000
FINANCIAL DETAILS
*Raw Material Requirement:
Item Qty. Rate Monthly 3 months Annually
Sodium Laury 5000 40 2,00,000 6,00,000 24,00,000
Sulphate 5000 20 1,00,000 3,00,000 12,00,000
Dimethicone 2000 18 36,000 1,08,000 4,32,000
28
32. *Total Cost of Project:
Sr. Particulars Amount (Rs.)
No.
01. Total Fixed Capital 42,00,000
02. Total Working Capital 75,33,600
Total 1,17,33,600
* Cost of Production:
Sr. Particulars Amount (Rs.)
No.
01. Raw Materials 58,77,600
02. Utilities 3,24,000
03. Man Power 12,84,000
04. Repair & Maintenance 1,83,750
Total 76,69,350
*Source of Fund:
32
33. Sr. Particulars Percentage Amount (Rs.)
No (%)
.
01. Owned Capital 60% 58,16,160
Mr. Chandresh Shyara 40% (23,26,464)
Mr. Narendra Vaghamshi 30% (17,44,848)
Mr. Rakesh Paradra 30% (17,44,848)
02. Borrowed Capital 40% 38,77,440
Total 100% 96,93,600
*Interest:
Sr. Particulars Capital Percentage Amount
No. Amount (%) (Rs.)
01. Owned Capital 58,16,160 10% 5,81,616
02. Borrowed Capital 38,77,440 12.5% 4,84,680
Total 96,93,600 10,66,296
*Depreciation:
Sr. Particulars Value Rate (%) Amount
No.
01. Building 17,50,000 12% 2,10,000
02. Machinery 10,25,000 15% 1,53,750
33
34. 03. Other Fixed Assets 9,00,000 10% 90,000
Total 4,53,750
*Maintenance & Repairs:
Sr. Particulars Value Rate (%) Amount
No. (Rs.)
01. Building 17,50,000 5% 87,500
02. Machinery 10,25,000 5% 51,250
03. Other Fixed Assets 9,00,000 5% 45,000
Total 1,83,750
FIXED ASSETS
*Details of Land and Building:
Sr Particulars Area Rate total
No.
01. Land 3000 yards 250 7,50,000
02. Building 2500 sq.ft. 400 10,00,000
Total 17,50,000
34
35. *Detail of Plant and Machinery:
Sr Particulars Amount. (Rs.)
No.
01. Drum 5,00,000
02. Heat – Cool Machine 1,00,000
03. Arrange Machine 50,000
04. Delivery Machine 1,50,000
05. Move Machine 1,80,000
06. Labeling 75,000
Total 10,25,000
*Other Fixed Assets:
Sr Particulars Amount. (Rs.)
No.
01. Delivery Rickshaw &Van 6,00,000
02. Furniture 3,00,000
Total 9,00,000
*Total Fixed Assets:
Sr Particulars Amount. (Rs.)
No.
01. Land & Building 17,50,000
02. Plant &Machinery 10,25,000
03. Other Fixed Expense 9,00,000
35
36. 04. Preliminary Expenses 5,25,000
Total 42,00,000
PROFITABILITY ANALYSIS
36
39. Profit&Loss Account 1st April 2011 to 31st March 2012
Particulars Amount Particulars Amount
Purchase Account Sales 1,10,30,000
Purchase 57,17,600
Direct Expenses
Electricity Expense 24,000
Water Expense 3,00,000
Indirect Expenses
Advertisement 60,000
Consumer Stores 12,000
Insurance Expense 20,000
Interest to Bank 4,85,000
Interest to Partner 5,81,616
Machinery & 1,83,750
Repairing
Misc. Expenses 6,000
Office Salary 2,04,000
Other Contingency 5,25,000
Post & Stamp 6,000
Preliminary 5,25,000
Expense
Telephone Expense 24,000
Net Profit 23,56,034
1,10,30,000 1,10,30,000
39
40. Balance Sheet as on31st March 2007
Liabilities Amount Assets Amount
Capital Assets Fixed Assets
Chandresh Shyara 23,26,464 Building 17,50,000
Narendra Vaghamshi 17,44,848 Land 10,25,000
Rakesh Paradva 17,44,848 Other Assets 9,00,000
58,16,160 36,75,000
Loan Liabilities Current Assets
Bank Loan Sundry Debtor 28,00,000
ICICI Bank 9,40,000 Cash in Hand 20,55,000
HDFC Bank 9,40,000 Bank Balance 25,00,000
Net Profit 33,33,840
1,10,30,000 1,10,30,000
STAFF & LABOUR
This unit gives employment to several people. It requires
certain people who can run the production, financial and other
aspect of the firm without interruption.
List of staff members and laborers is given below:
40
41. RISK FACTOR
Competition: -
There is the risk of great competition in today’s. World of
fast pace, because there are many competitors all over the market.
To sustain in this cut-throat competition the better way out is to
provide better quality goods at reasonable price. This is the most
41
42. efficient way to stay stagnant in the market. By doing so risk of
competition becomes less.
Lack of Consumer: -
we have started producing new product in the market so
consumers are not aware for products but to avoid this risk we
have to do more advertising and communication in an effective
way.
FUTURE PLANS
Future plan is advance thinking of future activity. Each and
every company wants to have bright future and they try to do
better activity in future and thus result in the growth of the
industry.
01. We want to launch a new shampoo with better quality and
new features.
42
43. 02. We want to start selling our product in the other countries.
03. We want to produce new products like soap, oil etc…
CONCLUSION
Shampoo is used in day to day life. In past years people used
soap to wash their hair, but now the use of shampoo has been
incredibly increased. Even in small villages people have started
using shampoo.
43
44. Today there are different features in shampoo and demand
has also increased. Different features like with amla, vitamins,
chandan, etc. and in future also there will be a variety of features
added in shampoo. In future there will be increase in demand and
the companies will get wider spread market.
BIBLIOGRAPHY
Entrepreneurship – VASANT DESAI.
44
