This document is a business plan for a candle manufacturing business called J&J Industries located in Metoda GIDC, Rajkot, Gujarat. The business will be run as a partnership between Mona Dharsandia and Jay A. Jilka, who will focus on production and personnel and marketing and finance, respectively. The plan outlines the raw materials, production process, capacity, costs, risks, and advantages of the business. The total investment is estimated at Rs. 2,777,700 with fixed capital of Rs. 2,720,000 and working capital of Rs. 674,400.
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Business plan mona
1. BUSINESS PLAN ON CANDLE
Prepared By
MONA DHARSANDIA
M.B.A. SEM. III
EN.NO. 117360592074
ACADAMIC YEAR 2011 - 2013
Submitted to
GUJARAT TECHNOLOGICAL UNIVERSITY
Through
N. R. Vekariya Institute of
Business Mgt. Studies
Bilkha Road,
Junagad
GUIDED BY DR. RAJESH PATEL
PREPARED BY : MONA DHARSANDIA 1
2. DECLARATION
I the undersigned mona dharsandia a student of NRVIBMS
College, M.B.A.- III here by declare that the project report presented in this
report is my own work and has been carried out under the guidance and
supervisor of Dr. RAJESH PATEL.
This work has not been submitted previously to any other university for
any examination.
Date:-
Place:- Junagadh
(mona dharsandia)
Signature.
PREPARED BY : MONA DHARSANDIA 2
3. PREFACE
I am student of M.B.A. SEM-III in N.R.Vekaria Institute Of Business
Management Studies College - Junagadh.
This course of M.B.A. is two years degree of master of Business
Administration. In this business management course practical training has
given an immense importance from the Gujarat technological University. In
M.B.A. faculty an industrial training is a part of syllabus of Gujarat
technological University. So, in the academic year, we have to prepare
business plan.
PREPARED BY : MONA DHARSANDIA 3
4. ACKNOWLEDGEMENT
I feel great pleasure to present this report before you. I am
thankful to all the member of university who had helped me in my guidance.
I express my deepest sense of gratitude towards our college lecturer Dr.
Rajesh Patel who has guided me preparing project report and without whose
support my report would have been very difficult to complete it. I am very
thankful and heartly grateful to our college staff members who have given
me a true guidance during preparing business plan.
Date :-
Place :- Junagadh.
(mona dharsandia)
Signature.
PREPARED BY : MONA DHARSANDIA 4
5. SR NO. PARTICULAR PAGENO.
1 ACKNOWLEDGE MENT 4
2 PROJECT AT GLANCE 7
3 OWNER’S BIO DATA 8
4 PROPOSED LOCATION JUSTIFICATION 10
5 INTRIDUCTION PRODUCTION 11
6 PRODUCTION PROCESS & DETAILS 16
7 BIBLOGRAPHY 23
PREPARED BY : MONA DHARSANDIA 5
6. INTRODUCTION
India is a nation on move. Its liberalized and open economic policies
have shown result. New avenues have opened up for new business activity. There
is aroma of all round profession in the air. In this progressive economic scenario,
one sector that has emerged as the most happening sector is the small-scale sector.
Therefore, the Govt. of India is providing various help for establishment and its
growth. It is proving with technical, financial & other guidance also.
The main objective of selecting this product is that there is a large
demand for the candles in every occasions & festivals as India is called the country
of festivals.
PREPARED BY : MONA DHARSANDIA 6
7. PROJECT AT GLANCE
1. Name of the Company : J & J Industries
2. Location of the unit: “J & J Industries”
Metoda GIDC,
Plot No. 8866
Rajkot.
3. Registered Office: Applied for
4. Brand Name: „INDIGO‟
5. Registration No: Applied for
6. Form of Organization: Partnership firm
7. Name of the Partners: JAY A. JILKA
8. Name of the Product: Candles
9. Size of unit: Small – scale
10. Cost of Project: Rs.2778700 /-
11. Sources of Finance: Ownership Capital
12. Investment in Working
Capital: Rs.674400/-
13. Investment in Fixed
Capital: Rs.2720000/-
PREPARED BY : MONA DHARSANDIA 7
9. Partner 2
Name: JAY A. JILKA
Address: 40, Jankalyan society,
“om”,
Road no. 1
Rajkot - 360001
Age: 21 yrs.
Qualification: B.B.A.
Experience: Nil
Contribution: 50%
Responsibility: Marketing & Finance Department
PREPARED BY : MONA DHARSANDIA 9
10. JUSTIFICATION OF LOCATION
Best location is one, which is followed by availabilities of infrastructure
facilities with Raw Materials, labour, transportation, Govt. facilities, if available &
marketing etc. All these factors easily available at cheaper cost best suits the
factory site. These factors must be taken into due consideration before deciding
location of the unit so that any difficulties might not rise-up in future.
(a) Raw Material –
The first & foremost factor that affects the factory location is
availability of Raw Materials. Raw Material is of prime importance for the smooth
functioning of any production unit. In this unit 60% of the total cost is material
cost. The wax & thread rolls are easily available in Metoda so this site has been
selected.
(b) Supply of Labour –
Labour supply must also be cheap & readily available in ample
amount so that the work does not break down due to labour inadequacy. Making
candles is 99% manual work and therefore the need for semi-skilled & unskilled
workers arises. Here the labour is cheaply available.
(c) Transport Facilities –
A good transportation facility is very well required so that raw
materials reach in time to the unit & finished goods to the market – be it to the
wholesalers or to the retailers. A good deal of proper & cheap transport facility
PREPARED BY : MONA DHARSANDIA 10
11. is needed. Metoda has railways & roadways facility, which help to cater all
markets. At present the target market for my product is Gujarat & Maharashtra
whereby Roadways & Railways facility is easily available from Metoda.
(d) Infrastructure Facility –
For smooth functioning of any unit even the infrastructure facilities
must be properly available. Telephone, Fax, Banking, Insurance, Postal, Water,
Fuel, etc must be available at cheaper & regular interval. These are all available
in Metoda.
PREPARED BY : MONA DHARSANDIA 11
12. PRODUCT DETAILS
The brand name under which “J & J” industry is going to manufacture the
candles is “INDIGO”. Indigo candles will be available in red light brown &
yellow colors.
These candles can be used during marriages, festivals, to decorate the hotels
and restaurants as the wick, which will be used, is of good quality as the making
of candles is related to quality consciousness rather than quantity.
Later on, perfumed and aromatherapy candles will also be manufactured.
PREPARED BY : MONA DHARSANDIA 12
13. MARKET POTENTIAL
Market Potential is the scope of your product occupying space in
existing market. Your customers, your market share, your contribution in the
market already existing, share in whole industry – all these aspects are covered
under the head Market Potential.
These days the artificial lighting concept as vanished and now people prefer
natural lightening during festivals and occasions, especially religious and
marriages. Therefore demand for candles will increase.
As all the classes of people can afford the candles the sales will
definitely increase, as the new concept is very catchy.
PREPARED BY : MONA DHARSANDIA 13
14. RAW MATERIALS
The raw materials are the base for the products without which the
final product is not possible. The raw materials used in making candles are:-
Paraffin Wax-Wax is very essential for candle making. This can be
purchased at a candle making supply store and comes in the form of
granulated wax. Ensure that you buy it from quality suppliers, as it
can have a bearing on the final product.
Color Dyes and Stearic acid - Use stearic acid to harden the candle.
It also helps the candles release from their molds by causing the wax
to shrink as it cools. Apply your creative ideas and use different or
blended colors to your candles. You can get color dyes from the
candle making supply stores and the use of these dyes depends on the
size of your candle. You can find these dyes in block, chips and liquid
form. Color dyes are highly concentrated and must be used sparingly.
Moulds- Shop around to find out different designs of candle making
moulds. Moulds come in all shapes and sizes and you can put them to
best use by your creative efforts. You are limited only by your
imagination.
PREPARED BY : MONA DHARSANDIA 14
15. Ladle and Spoons - Use handy metal spoons or ladle to stir the wax
and pour it out.
Wick - There is a wide range of wick types and sizes available in the
market. Choose a wick that is suitable for the size and shape of candle
you are making. The most common candle-making wick is braided
cotton that has been treated chemically to improve the quality of
burning. If the wick is too small, the candle will not burn well
whereas a large wick will cause a smoky flame.
PREPARED BY : MONA DHARSANDIA 15
16. MANUFACTURING PROCESS
Candle Making
Paraffin wax melts at 130 degrees. While the wax melts, measure the size of wick
required for your mold.
Tie the wick to the center of the pencil or dowel.
Suspend the wick in the center of the mold with the help of small weight on the
other end.
Add stearic acid and color in another pot and allow them to dissolve. Once the
temperature reaches 190 degrees, combine the mixture into the pot with the
paraffin wax.
Stir and blend them together completely while maintaining the temperature at 190
degrees.
Finally pour the contents into the mold and let the mixture cool. As the wax cools,
it will contract and a small well will form around the wick.
Touch the candle; if it is cold it is time to remove it from the mold. Safety is
critical in candle making especially when it comes to wax melting.
Keep attending to your pans once you heat wax. The characteristics of a good
candle are absence of bubbles or lines and long and even burning of the flame.
The color must be well distributed and the fragrance it emits must be pleasant
without being overpowering.
PREPARED BY : MONA DHARSANDIA 16
17. Production Capacity Schedule
Total Fixed Assets
Particulars Area Rate (Rs.) Amount
Land (sq. mt.) 1000 810 810000 810000
Building (sq. ft.) 5000 300 1500000 1500000
Equipments Quantity
Aluminum mould 8 1500 12000
Designer block 4 100 400
Stove 3 500 1500
Enamel vessels 8 50 400 14300
Other Assets
Furniture 50000 50000
Delivery Van 1 250000 250000
Computer 1 35000 35000 335000
Other equipments 700
Preliminary Expenses 60000 60000 60000
Total 2720000
PREPARED BY : MONA DHARSANDIA 17
18. Cost Of Production
Particulars Amount
Raw Materials 120000
Staff & Labour 198000
Other Expenses & Utilities 212400
Total 530400
Total Working Capital Requirement
Particulars Monthly (Rs.) Yearly (Rs.)
Raw Materials 30000 360000
Wages 8500 102000
Utilities 8000 96000
Other expenses 9700 116400
Total Investment: 56200 674400
PREPARED BY : MONA DHARSANDIA 18
20. Staff & Labour Salary
No. of
Particulars Rate Amount/ month Amount
Persons
Manager 1 5500 5500 66000
Salesman 1 1000 1000 12000
Delivery boy 2 500 1000 12000
Peon 1 500 500 6000
Watchman 1 500 500 6000
Semi-skilled labour 3 2000 6000 72000
Unskilled labour 2 1000 2000 24000
Total Salary: 16500 198000
PREPARED BY : MONA DHARSANDIA 20
21. Risk Factors
Every new business requires to determine its risk factors involved in
the business. 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. Following are some of the risk factors the new
business may face:-
1. The unit will operate in competitive market where other units
have already achieved a good name in the market.
2. It may take time to beat the competitors market.
PREPARED BY : MONA DHARSANDIA 21
22. ADVANTAGES AND FUTURE
India government is very encouraging the small
scale industries now days. So, there will be lots of help available for the unit
and so, the future is very rosy of the unit.
PREPARED BY : MONA DHARSANDIA 22
23. BIBLIOGRAPHY
NAME OF BOOKS AUTHOR’S NAME
1. Path darshak SSI Shri S.Ganatra
2. Principles of Mgt. Philip Kottler
3. Web site of related product :
WWW. J & J CHANDEL.com
PREPARED BY : MONA DHARSANDIA 23