D

ECLARATION

I THE UNDERSIGN SUTARIA DHAVAL, STUDENT OF TYBBA OF RPBC HERE BY DECLARE THAT THE PROJECT WORK PRESENTED IN THIS PROJECT REPORT IS MY OWN WORK AND HADE BEEN CARRIED OUT UNDER THE SUPERVISOR OF MR. JAY PATEL OF RAMABEN PARBAT BHAI BHALODIYA COLLEGE RAJKOT. THIS WORK HAD NOT BEEN PREVIOUSLY SUBMITED TO ANY OTHER UNIVERSITY FOR ANOTHER EXAMINATION.

DATE:

SIGNATURE:

(SUTARIA DHAVAL)

REFACE

BBA IS A PROFESSIONAL COURSE OF MANAGEMENT STUDY AND MANAGEMENT IS SELF IS AN ART. ART INVOLVES THE PRCTICE.THERE FOR, IT IS NECESSARY FOR BBA STUDENT TO KNOW PRACTICALLY HOW THE BUSINESS RUNS.TO FULFILL THE SAME PURPOSE, APRACTICAL STUDY HAS BEEN ENTERED IN THIS COURSE, WHICH INVOLVES THE STUDY OF ANY ORGANIZATION AND MAKING COMPLETE REPORT ON IT, IN THIS WAY, OUT PRACTICAL KNOWLEDGE INCREASES WHICH IS VERY ESSENTIOAL NOW A DAYS. THE CHIEF OBJECTIVE OF PRACTICAL TRAINING IS TO GET AN OUTLOOK OF WHAT WE STUDY THEORETICALLY INSIDE THE CLASSROOM. IT ALSO HELPS TO DEVELOP THE AWARNESS ABOUT BUSINESS PRACTICES AMONG THE STUDENTS. HERE IS THE REASEARCH REPORT ON THE FORD ICON. THE MAIN CONCENTRATION IS ON THE TOPIC OF BRAND LOYALTY OF FORD ICON CAR. THIS REPORT DETAILS OF THE COMPANY. CONTAINS ALL THE NECESSARY

CKNOWLEDGEMENT

ITS A DUTY OF A STUDENT OF BBA TO PREPARE AND SUBMIT A PRODUCT REPORT. THIS REPORT BEING PART OF A PRACTICAL STUDY IS PREPARED BY SUTARIA DHAVAL J. THE PURPOSE OF PROJECT IS TO PROVIDE AS WITH VALUABLE INFORMATION REGARDING BUSINESS MANAGEMENT AND WORKING OF UNIT. I AM VERY GLAD TO PRESENT BEFORE YOU BECAUSE BY PREPARING THIS REPORT. IT HAS ADDED A PRACTICAL KNOWLEDGE TO MY THEORITICAL KNOWLEDGE. TO CALL THOSE WHOSE WORK AN IDEA HAVE BEEN SO HELP FULL TO ME IN WORKING ON THIS REPORT. I WISH TO EXPRESS MY SINCERE APPRECIATION. FIRST OF ALL I EXPRESS MY GRATITUDE TO MY FACULTY FOR PROVIDING ME THIS OPPORTUNITY. I EXPRESS GRATITUDE TO MR. KALIDAS WHO IS OUR TRUSTEE AND HE HAS ENCOURAGE THE BBA PROGRAME I AM THANK FULL TO OUR LECTURER MR JAY PATEL THEY WERE VERY CO-OPERATIVE IN THE VISIT AND PROVIDED US RELEVENT AND MUCH NEEDED INFORMATION ABOUT THE PRODUCER AND ABOUT PREPARING THE PROJECT REPORT.

INDEX
SR.NO
1 2 3 4 5 6 7 8 9 10 11 INTRODUCTION PROJECT AT GLANCE PARTERS BACKGROUND IMPLIMENTATION SCHEDULE JUSTIFICATION OF LOCATION PRODUCT INFORMATION PRODUCTION PROCESS FINANCIAL INFORMATION TERN OVER (PER MONTH) PROFIT RATIOS

PARTICULAR

INTRODUCTION
This report is intended to set for the project that has been undertaken by given unit. So that, that is nature has been understood, its projected operations comprehended and its responsibilities. This project contains projection bearing and profitability of the venture and its worthiness. It also introduces and gives personification data of the manufactures with brief history of all the partners and firm with location and location advantages with primary facts of the product and project that is cake.

PROJECT AT GLANCE
1. NAME OF THE UNIT 2. LOCATION : : Udhyog nagar industrial estate, Gondal road, Rajkot. : CAKE : Partnership Firm : Small Scale Organization : 3 : Application is made

3. PRODUCT 5. FORM OF ORGANISATION 6. SIZE OF ORGANISATION 7. PARTNERS 8. S.S.I.REGISTRATION NO.

PARTNERS BACKGROUND
PARTNER: 1 PARTNER: 2 PARTNER: 3

IMPLIMENTATION SCHEDULE
The implementation of the project may require about 5 to 6 months for getting into commercial production. The schedule of implementing the part of activities is as follows; Preparation of project report, selection of site, registration as SSI unit Availability of finance, selection of machinery, procedure of machinery 1 month Erection and commission trial run Recruitment of Labour and commercial production

3 month

1 month 1 month month

JUSTIFICATION OF LOCATION
Location of industry plays a dominant in success or failure of the company therefore the location of an industry is determine by taking into consideration the following factors;

1. SITE AND SERVICES:

The Udhyog nagar industrial estate a well establishes Industrial area. So, services like bank post, telephone Etc. is easily available and the site is well located with a lot free space around and well leveled based. 2. AVAILABILITY OF RAW MATERIALS: The raw material and machine are easily available that are condensed milk , flour, sugar, white butter, problem for the unit. 3. AVAILABILITY OF RAW MATERIAL: All kind of Labour such as unskilled semi skilled is easily available in the estate. Even if we does not keep on permanent basis. They can be employed on contract based. This again will not be any problem. 4. TRANSPORTATION: It is prerequisite for a unit to have proper transportation facility. It is required for getting raw materials as well as distributing finished goods. In terms a transportation facility udhyog nagar is having good location. 5. OTHER FACILITIES: Among with all above mentioned facilities like, the insurance companies, tele communication services, post offices services, ect are available in the near by area. baking powder, soda bicarb, vanilla, liquid milk, salt, etc. hence availability of raw material will not be a

PRODUCAT INFORMATION
Baking and confectionary products are now consumed in mass quantity. But unlike in advanced countries the per capita consumption of the product in India is still low. Cake the sweet preparation of wheat, usually with chemically leavening agents, has become very popular. By using baking oven in the houses, the cake of our own choice taste and flavors can be made. To make it more convenient like other ready mixes, cake mixture is made which will give the dough, after adding milk/water to it. And dough is ready for cake making in baking oven in the house.

MACHINERY & EQUIPMENT

1. Flour sifter fitted with 3 H.P. motor. 2. Micro pulverizes complete with motor. 3. Mixer. 4. Cabinet model electrically operated oven. 5. Polythene bag sealing machine. 6. Tools, treys. 7. Office equipment & furniture.

SUPPLIERS
1. M\S. nag pal brothers,2789 zerawar singh marg, Delhi 2. M\S. nag pal engg. Works, lahorigate, patiala 3. M\S batliboi & co. (P) ltd., narsimharaja road banglore 560002. 4. M\S. novel engg. (P) ltd. Sambava chamber, sir phiroz road, Bombay

RAW MATERIALS
MAIN RAW MATERIALS Butter Flour Sugar Milk powder

ADDITIONAL RAW-MATERIALS Condensed milk White butter Baking powder Soda bicarb Vanilla essence Liquid milk Fat (butter) Salt Essence Water Whole eggs.

Market Potential
Target market Coverage Competitors : : : Local public Hotel Restaurant Gujarat Channel backery shop, Local backery shop Pick selling periods : December

Consumer behavior : In Gujarat specially most of the people are used to use or consume vegetarians food. So we introduce egg less cake mix specially to cover such people (consumers). Pricing strategy : While at the introducing stage at against the big competitors we have adopt penetration price to cover maximum consumer. Moreover the Gujarat is the state where more and more

festivals are celebrated. Because Gujarat is the one of state of India. So I think market of cake in Gujarat is wide.

the developed

PRODUCTION PROCESS
The main ingredients in the cake making are flour, sugar, milk powder or butter. The ready cake mix can be egg less cake mix or cake mix with egg. There are different types of cake likes walnut cake, sponge cake, egg less cake etc. The flour is sieved first to remove foreign particles and then mixed with sugar and other ingredients except fat Butter. The mixed material is then dried in an oven and ground in the pulverize. The mixture is then packed in kg. And 1 kg. Packs in polythene and then in cartoons of 10 kg. / 15kg. Size for transportation and storage. These mixes show very good results when dough is made by adding milk, fat etc. by the consumer at the time of preparation. Approximate formulations of egg less cake and sponge cake are as follows. The milk or whole egg is added after taking the packet of cake mixture as per the proportion shown in the formulation

Egg less cake: Condensed milk Flour Sugar White butter Baking powder Soda Bicarb Vanilla Liquid milk

Gms. 200.00 1000.00 1000.00 500.00 50.00 12.50 10.00 750cc.

Sponge cake flour sugar fat baking powder milk powder salt Orange essence Vanilla essence Water Whole eggs

Gms. 1000.00 1000.00 700.00 15.00 50.00 5.00 2.50 5.00 450 750

QUALITY SPECIFICATION
There is no rigid specification for instant mixes. However, the product should be manufactured as per PFA (prevention of food adulteration). Act exercise by the local health department authorities. The quality specifications about moisture content and bacteriological count etc. are required to be looked into. .

PRODUCTION CAPACITY
PARTICULARS
EGGLESS CAKE MIXTURE kg. Packets 20,000 nos... 25.00 Rs. selling price (B) 1 kg. Packets 15,000 nos. 40.00 Rs. Selling price SPONGE CAKE MIXTURE kg. Packets 20,000 nos. 40.00 Rs. Selling price 1 kg. Packets 40,000 nos. 35.00 RS. Selling price

RS.

5,00,000 6,00,000

8,00,000 14,00,000

POWER REQUIREMENT
The power requirement is 20 H.P.

POLLUTION CONTROL
It is not pulling the environment at any ways like air, water, sound, etc.

ENERGY CONSERVATION
Selection of proper size pulleys. Suitable size induction motors should be used for pulverize, shifter and other power driven instruments.

FINANCIAL INFORMATION
Financial mgt. has a greater importance in business. Finance is the life blood for any business. A business units needs finance fore the production of goods, services as well as their distributions. Without adequate finance no business can operate successfully even the manufacture having technical as well as operative skill can not avoid disadvantages of inadequate finance or insufficient finance and invites heavy loss and consequently leads wears bankrupt, so it is highly business organization has it own systematic and proper financial dept.

SOURCES OF CAPITAL
PARTICULARS
OWN CAPITAL BORROWED CAPITAL Public deposits Bank loan TOTAL

RS.
10,00,000 4,00,000 6,55,000 20,55,000

INTEREST ON CAPITAL
PARTICULARS
OWN CAPITAL BORROWED CAPITAL Public deposits Bank loan TOTAL 15% 13% 60,000 85,800 2, 25,800

INT.RATE
8%

RS.
80,000

FIXED CAPITAL
LAND: Land shead 150 sq. meter at Rs. 4000 per square meter, so total cost is 6, 00,000.

MACHINERY AND EQUIPMENT:

NO. 1. 2. 3. 4. PARTICULAR Flour shifter fitted with 3 H.P. motor Micro pulverizes complete with motor. Mixer Cabinet model electrically operated oven with 48 trays each 32 1651.0 with thermostatic control and other accessories. Weighing machine (A) plat form type(capacity 100kg) (B) Table model. Polythene bag sealing machine Miscellaneous equipment, tools, treys etc. Official equipments and furniture TOTAL NO. PARTICULARS Total of machinery and equipment ADD: electricity installation charges TOTAL RS. 50,000 60,000 25,000 1,25,000 15,000 10,000 15,000 50,000 1,00,000 4,50,000 RS. 4,50,000 50,000 5,00,000

5. 6. 7. 8.

TOTAL FIXED COST

PARTICULAR (A) Land (B) machinery (C) electricity installation TOTAL RS. 6,00,000 4,50,000 50,000 11,00,000

WORKING CAPITAL MANAGEMENT

PARTICULARS Manager Accountant Clerk-cum-typist Clerk-cum-chowkidar Mechanic/supervisor Skilled Labour Unskilled Labour TOTAL SALARY WAGES Perks at 20% of salary TOTAL NO OF EMP. 1 1 1 2 1 2 7 15 SCALE 4,000 2,500 2,000 1,100 2,200 2,200 1,100 RS. (PM) 4,000 2,500 2,000 2,200 2,200 4,400 7,700 25,000 5,000 30,000

RAW MATERIAL & PACKAGING

PARTICULARS Flour at Rs. 14 per kg. Sugar4 at Rs. 15 per kg. Condensed milk at Rs.120 per kg. Baking powder Soda bicarb Salt Flavors Milk powder at Rs. 80 per kg. Packaging materials I.e. Polythene, straps, Cartoons etc. TOTAL QNTY. 1.7 mt. 1.2mt. 1.0 mt. 40.0 kg. 8.0 kg. 2.5 kg. 50.0 kg. 8000 RS. 23,800 18,000 1,20,000 25,000 500 6,000 8,000 2,01,300

UTILITIES: (PER MONTH)

PARTICULAR Power 2000 k.w. Water 100 k.l. TOTAL RS. 2,400 400 2,800

OTHER EXPENCES (PER MONTH)

PARTICULARS Postage Telephone Consumable storage Repairs and maintenance Transportation charges Insurance Sales expenses Other miscellaneous expenses TOTAL RS. 500 1,000 2,000 1,500 1,000 1,500 5,000 5,000

17,500

TOTAL EXPENCES
PARTICULAR Total personnel expenses Total raw material and packaging Utilities Other contingent expenses TOTAL RS. 30,000 2,01300 2,800 17,500

2,51,600

WORKING CAPITAL FOR 3 MONTHS

= Total expenses * 3 months = 2, 51,600 * 3

= 7, 54,800

TOTAL CAPITAL INVESTED

PARTICULAR Fixed capital Land Machinery and equipment Electricity installation charges Working capital Personnel cost(3 * 30,000 ) Raw material and packaging(3 * 2,01,000 ) Utilities (3 * 2,800 ) Other contingent expenses (3 * 17,500 ) Total recurring expenses (3 * 2,51,600 ) TOTAL RS. 6,00,000 4,50,000 50,000 90,000 6,03,000 8,400 52,500 7,54,800

26,08,700

COST OF PRODUCTION
PARTICULARS Recurring cost Depreciation Land (5%) Machinery (5%) Office equipment (10%) Interest on investment (18%) TOTAL RS. RS. 30,19,200 30,000 30,000 15,000 75,000 2,25,000

33,19,200

TURN OVER (PER MONTH)

NO. 1. PARTICULARS A) egg less cake mix 500 gms @ Rs. 50 (no. 15,000) 1000 gms @ Rs. 80 (no.20,000) B) sponge cake mix 500 Gms. @ Rs. 40 (no. 25,000) 1000 Gms. @ Rs 75 ( no. 20,000) Total PG. 7,50,000 16,00,000 10,00,000 15,00,000

2.

48,50,00 0

PROFIT
PARTICULARS Sales LESS: cost of production Gross profit (EBIT) LESS: interest on capital EBT LESS: 35% tax Earning after tax (profit) RS. 42,00,000 30,94,200 11,05,800 2,25,800 8,80,000 3,08,000

5,72,000

RATIOS
1.
NET PROFIT RATIO: = NET PROFIT * 100 TURN OVER PER YEAR = 5, 72,000 * 100 42, 00,000 = 13.62%

2. RATE OF INVESTMENT:
= PROFIT * 100 INVESTMENT = 5, 72,000 * 100 20, 55,000 =

27%

3.

BREAK EVEN POINT: = = FIXED COST * 100 FIXED COST + PBT 11, 00,000 * 100 11, 00,000 + 8, 80,000 =

55.55%