Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
on Establishment Of
A Boondi Manufacturing
Plant
G.K.M.Rajapaksha
AS2012715
Content
Introduction
Market feasibility
Technical feasibility
Production feasibility
Financial feasibility
Environmental feasibility
Socio- economic feasibility
Conclusion
References
Introductio
n
Market
Feasibility
: Boondi
Market Competitiveness
Porters five forces
Threat of New
Entrants
Low
Bargaining
Power of
Customers
Intensity of
Competitive
Rivalry
High
Boondi
High
Low
Bargaining
Power of
Suppliers
High
Threat of
Substitute
Purchaesing station
Market survey
15%
40%
20%
8% 3% 10%
13%
68%
Extremely
high
High
Moderate
Low
Street
vendors
Retailers
Super
markets
Other
Purchase pattern
Daily
20%
5%
75%
Weekly
Monthly
When ever
you needed
23%
200g
250g
Red
Yellow
Green
Orange
10%
3%
15%
300g
53%
15% 5%
Polythene bag
with paper
label
43%
38%
73%
350g
40%
Polythene bag
with print
Shrink wrap
bag with print
30%
Rs. 90
Rs.
100
Rs.
110
Urban area
Semi urban area
Demographic
segmentation
Psychographic
segmentation
Behavioral
segmentation
Marketing Mix
Product
Price
Place
Promoti
on
Boondi.
Available in 250g packets.
Use gram flour, Rice flour, sugar &
palm oil as main raw materials.
Double laminated packaging
Retail price = Rs.92
10%
profit margin
to retailers.
Coverage
:Colombo,
Gampaha,
Kalutara
Street vendors, Whole sales,
retail shops, super markets,
Restaurants, government
institutions. :Posters, Banners
Advertising
& leaflets.
Sales promotions : Discount for
government institutions
SWOT analysis
STRENGTHS
Low cost
High quality product
Easily available in
urban and sub urban
areas
OPPORTUNUTIES
Higher demand for
Boondi
Consumers
preference on oily
sweet foods
Increasing
consumption of
confectionary
WEAKNESSES
Limited distribution
Limited production
Lack of advertising
Lack of quality
certifications
THREATS
High amount of
competitors
Unawareness of brand
name among
customers
Price variations of
raw material used
Sales Forecast
Year
Year 1
25,000x12
83.31
Year 2
26,500x12
83.31
Year 3
28090x12
83.31
Annual
sales
revenue Rs.
24,992,39
9.20
26,491,94
3.15
28,081459
.74
Technical
feasibility
site selection
Factors determine the Site
Economic factors.
Non-economic factors.
Location
Proximity to raw materials & supplies.
Location of markets.
Labor climate.
Taxes & incentives.
Proximity to other company Facilities.
Water supply & drainage facilities.
Source of power, banking & credit facilities.
Location : Horana
Political & cultural factors.
Factory layout
1) Raw materials
store.
2) Packing materials
store.
3) Finish products
store.
4) Manufacturing area.
5) Packing area.
6) QA & RD
department.
7) Wash room.
8) Cleaning &
changing room.
9) Waste accumulating
& segregation area.
10) Lunch room.
11) Security room.
12) Sales room.
Smooth Floor
Expanding Facilities
Ample area for Loading &
Unloading
Building Design
The factory will be designed in accordance with
guidelines in building food processing factories
Floors
Smooth
Drainage gradient
Easy to clean
Doors
Smooth
Easy to clean
Non absorbant
Self closing
Machinery &
Equipment
Fryer
Mixer
Packing Machine
Molder
Conveyor
Capacity
Unit Cost
(Rs.)
Total cost
(Rs.)
Mixing machine
40kg/hr
90,000
90000
molder
40kg/hr
70,000
70000
Deep fryer
Cooling
conveyors
Packaging
machine
Lab
equipment's
Miscellaneous
40kg/hr
120,000
120000
40kg/hr
83,000
83000
200
packets/hr
284,000
284000
350,000
350,000
20,000
20,000
Machinery
1,017,000
Production
feasibility
Packing material
Purchase from a Quality Wholesale supplier
Purchasing is done for once a month
process flowchart
Raw Materials
Mixing
Molding
Deep Frying
Dipping in
sugar syrup
Cooling
Packing
Storage
Dispatching
Human Resource
Management
General
Manager
Production
Executive
QA & RD
Executive
Marketing &
Finance
Executive
Sales rep
Security
guard
4 Workers
Driver
Financial feasibility
cost structure
Description
Raw material cost
Cost (LKR)
31.47
2.65
Labor cost
2.88
11.72
1.58
Total cost
50.31
22.14
72.44
10.87
83.31
8.33
91.64
Year 0
Year 1
Net cash
flow
DF @
10%
Present
Values
NPV
(18,000,000.0
0)
(18,000,000.0
1 (18,000,000.00)
0)
7,159,140.09
0.8929
(11,607,603.8
6,392,396.19
1)
Year 2
7,867,637.99
0.7972
(5,335,522.80
6,272,081.01
)
Year 3
8,618,645.77
0.7118
6,134,752.06 799,229.25
Accept the
NPV
12%
799,229.25
10%
1,508,941.34
IRR = A + { (B A) (a / a b)}
IRR = 14%
IRR > Cost of capital Project should be
accepted
Return On Investment
(ROI)
ROI = (Net profit before depreciation/Total
Investment)*100
Year
Net profit
Total
investment
ROI %
Year 1
6,885,315
18000000
38.25
Year 2
7,593,813
18000000
42.19
Year 3
8,344,821
18000000
46.36
Cumulative net
cash flow
Year 0
(18,000,000)
(18,000,000)
Year 1
7,159,140
(10,840,860)
Year 2
7,867,638
(2,973,222)
Year 3
8,618,646
5,645,424
Break even
Analysis
7000000
6000000
BEP
5000000
(Break Even
Point)
4000000
3000000
2000000
1000000
0
0
15000
30000
45000
60000
Units
Total cost
Revenue
Breakeven analysis
Breakeven point = (Fixed cost) / Contribution per unit
Contribution per unit
per unit
50,305 Packets
75000
90000
Environmental
feasibility
Environmental considerations
purpose .
Waste management
Solid
waste.
Over fried or bad quality Animal feed.
Market returns & raw material waste Produce
compost.
Packages Properly dispose.
Conclusion
Boondi manufacturing is a commercially
feasible business in many aspects
Marketing, Technical, Production, Financial, Environmental & Socio
economic aspects.
Reference
www.iit.edu/cac/faculty_resources/feasibility_study.shtml
http://www.alibaba.com
http://dir.indiamart.com
http://www.fssai.gov.in
Thank You