air cooler project report

INDEX

SR.NO.

PARTICULAR PAGENO.

1. INTRODUCTION 3

2. PROJECT AT GLANCE 5

3. GENERAL INFORMATION 6-10

OWNER’S/PROMOTER’S BIO DATA 7JUSTIFICATION OF LOCATION 8MARKET POTENTIAL 10

4. PRODUCTION INFORMATION 11-16

RAW MATERIALS 12

MANUFACTURING PROCESS 14

5. FINANCIAL INFORMATION 17-28

FINANCIAL DETAIL OF A PROJECT 18

FINANCIAL PROVISION 21

SALES, SALARY & WAGES 22

PROFIT ANALYSIS 25

BALANCE SHEET 26

BREAK – EVEN ANALYSIS 27

RATIO ANALYSIS 28

6.PERSONNEL INFORMATION 39-37

INTRODUCTION 30

RECRUITMENT AND SELECTION 31

TRAINING &DEVELOPMENT 33

PROMOTION & TRANSFER POLICY 34

PERFORMANCE APPRAISAL 36

EMPLOYEE WELFARE & BENEFIT 37

1

7.MARKETING INFORMATION 48-45

INERODUCTION 39

MARKETING MIX 40

MARKET SEGMENTATION 41

CONSUMER BEHAVIOR 42

ADVERTISEMENT & SALES PROMOTION 43

DISTRIBUTION & CHANNEL 45

8. PRESENT POSITION & FUTURE SCOPE 46

9. CONCLUSION 47

10. APPENDIX 48

11. BIBLIOGRAPHY 50

2

INTRODUCTION

As a part of practical training, I have selected to prepare a product project report on Air

Coolers. There are mainly two types of coolers;

1. Room Coolers.

2. Temperature Coolers.

Evaporative type Air Coolers are used in peak summer season for cooling of rooms,

offices, hotels etc. In general Air Coolers are used for cooling similar areas and desert coolers are

used for larger area. Air Coolers basically consist of body, fan, water pump and control switch

etc.

An electric fan generally of exhaust fan type is mounted inside a louvered housing and

three vertical sides of the housing are fitted with filtered pads which are kept wet with help of

water pump. Rotation of fan mounted inside the body draws air from all the three sides through

wet pads. Thus, air gets cooled by evaporation of water and which is blown into the room.

But this benefits are not enough reasons to pursue an entire project in order to commence

such a business, a business person has to check the financial viability of the project also certain

questions to be answered like,

3

How much capital is more required?

From where this capital will be procured?

What will be the cost of production?

What will break even point be reached?

What would be the profits and return on investments?

And the list is endless …………..!!!!

A genuine attempt has been made to answer all these questions with almost justification

possible in the following pages…….

4

PROJECT AT GLANCE

NAME OF THE UNIT : ANGEL AIR COOLERS

ADDERSS FOR : “ANGEL AIR COOLERS”SHED NO.3425,BHAGYODAY ROAD, G.I.D.C PHASE 3 DARED,JAMNAGAR-361004, INDIA

SIZE OF UNIT : SMALL SCALE INDUSTRY

NAME OF PARTENERS :

NAME OF THE PRODUCT : AIR COOLERS

SSI REGISTRATION NO : APPLIED FOR

LOCATION OF THE UNIT : “ANGEL AIR COOLERS” SHED NO.3425, BHAGYODAY ROAD,

G.I.D.C PHASE 3 DARED, JAMNAGAR-361004, INDIA

5

PROMOTER’S BIO DATA.

NAME :

ADDRESS : “SHREEJINI VAS”

3, HOSPITAL ROAD

PATEL COLONY

JAMNAGAR– 361004

AGE : 20 YEARS

QUALIFICATION : B.B.A

EXPERIENCE : FRESHER

7

PROPOSED LOCATION JUSTIFICATION

Factory Location is the decision regarding geographical situation of the plant. This

decision is a very crucial one because it is not easily alterable and involves a considerably huge

amount of investment. The location of the factory plays a very vital role in success of failure of

the business. But this decision is affected by many factors, which are to be kept in mind while

selecting the location.

Registered Office:

“ANGEL AIR COOLERS” SHED NO.3425,

BHAGYODAY ROAD, G.I.D.C PHASE 3 DARED,

JAMNAGAR-361004, INDIA

Factory Office:

“ANGEL AIR COOLERS” SHED NO.3425,

BHAGYODAY ROAD, G.I.D.C PHASE 3 DARED,

JAMNAGAR-361004, INDIA

8

The correctness of this decision can be justified on the full basis:

1. Industry Choice:

Many other industries are situated in this locality, and hence it is a

common choice of all the entrepreneurs in this business.

2. Nearness to the Registered Office:

As the registered office located at Bhagyoday Road, the location of the

factory is near to the administrative office and the computer room which is useful

in faster communication.

3. Market Proximity:

The location also provides proximity to the market in the sense that a

direct sale from factory is also possible.

4. Transportation:

A transport facility with a good speed and capacity is needed to make

delivery on right time and at right place. While making a study of a location, an

entrepreneur considers the question of the availability of transport facilities. It

can be said that industries are largely depend upon transportation. In the firm we

use three vans to transport the finished goods to different cities.

5. Rapid Sales:

As the factory location is nearer to industrial area of dared as well as

registered office locations are situated in the heart of the city, sales are bound to

increase at unimaginable rates.

9

MARKET POTENTIAL

As the construction of residential accommodation, office complex and the standard of

living is increasing day by day, demand for this item is also increasing specially in the sections

of society who are not able to afford air conditioned. It is understood that during the period of

last 10 years there is a rise in demand for the item @ 60 % p.a. and this trend is likely to

continue.

10

RAW MATERIALS

The main raw materials required for manufacturing Air Cooler are as follows:

1. GI Sheet

2. Cooler Motor

3. Pump Vertical

4. Wire Net

5. Filter Pad

6. Switches

7. Cable ( 3 core )

8. Hardware Items

9. Consumable Stores

12

NAMES AND ADDRESSES OF SUPPLIERS

[1] M/s. Bharat & Bros.

52, Tagore Road,

Mumbai

[2] M/s. Hardik Engineering Works,

Okhala Industrial Estate,

Rajkot

[3] M/s. C. L.Viradia & Co.

1, Deshbandhu Gupta Road,

Mumbai

[4] M/s. Piyush Engg. Co. Pvt. Ltd.

M-block,

Connaught Place,

Goa

[5] M/s. Ravi & Bros. Ind.

3E/8, Jhandewalan Extension,

Baroda

[6] M/s. Paresh&Parag India Ltd.,

68, Najafgarh Road,

New Delhi.

13

MANUFACTURING PROCESS

[1] GI sheets are purchased from the local market and cut to size, louvers made and

bent for making the vertical sides, top cover and water pump. Filter pads are fitted in the

3 vertical sides and electric fan and vertical pump are mounted. On the grill is fixed

through which cooled air is brown out. Switches are provided in the front panel, vertical

sides, top cover are assembled together with screws/ nut and both assembled cooler is

then painted.

[2] Assembled cooler is tested as per the requirement of ISO: 2000. The basic

requirements of the tests are as follows:

a) Insulation Resistance Test :-

The insulation resistance between all electrical circuits, when measures at

normal room temperature with measure of 500 V DC.

b) High Voltage Test :-

The electrical insulation all electric circuits shall be able to withstand high

voltage tests of 1000 V for single phase motors applied for not less than 2

seconds.

c) Production Efficiency Test :-

Cooling efficiency and air delivery for various capacities of air coolers

shall be within the limits prescribed in relevant ISS.

14

[3] Production Capacity:-

(a) Quantity 2500 nos. Air Coolers per annum

(b) Value Rs. 10,000,000

[4] Approximate Motive Power Requirement:-

5 KW

[5] Pollution Control Requirement:-

No Pollution control certificate is required for registration of the units for

manufacture of this item.

[6] Energy Conservation Need:-

The design of the fan and electric pump should ensure minimum iron losses and

the cooler should be able to withstand cooling efficient and air delivery tests as per ISO:

2000

15

PRODUCT DETAIL

1) AG-100:

2) AG-1253) AG-150

16

FINANCIAL DETAILS OF PRODUCT

1) LAND & BUILDING:

Location of Unit: - SHED NO.3425,BHAGYODAY ROAD, G.I.D.C PHASE 3 DARED,

JAMNAGAR – 361004.

This is the location where all the infrastructure facilities are available. This location is called

“G.I.D.C PHASE 3 DARED,” and the survey.

Details of Need: - Business.

DETAILS OF LAND: - Urban Area.

[Table No.1]Sr. No. Particulars Square Feet Rate Total Value

(Rs.)

1 Land 2,500 1000 25,00,000

[Table No.2]Sr. No Particulars Area

1 Factory 1,200

2 Go-Down 400

3 Office – Room 400

Total 2,000

Total Construction Cost = 2000 X 2000 = 40, 00,000

18

1) DETAILS OF MACHINERY:

[Table No.3]No Name of Machinery Total value

(Rs.)

1 Guillotine Shearing Machines 7,50,000

2 Power Press 20 tons capacity 9,00,000

3 Screw type break press 4,50,000

4 Air Compressor complete with motor spray 50,000

5 Gas welding set 30,000

6 Portable electric drill 90,000

7 Multimeter 60,000

8 High voltage test set 3 KV 1,70,000

Total 25,00,000

2) FIXED CAPITAL AND FIXED COST :

[Table No.4]No. Fixed Capital Amount

(Rs.)

1 Land 25,00,000

2 Building 40,00,000

3 Machinery 25,00,000

Total 90,00,000

19

3) WORKING CAPITAL REQUIREMENT:

[Table No.5]No. Particulars Amount

(Rs.)No. Of Days requirement

1 Raw Material 2,50,000 1 Month

2 Administration Expenses 6,500 1 Month

3 Wage & Salary Expenses 22,000 1 Month

4 Current Expenses 15,000 1 Month

5 Repair & Maintenance 6,500 1 Month

Total 3,00,000

4) TOTAL COST OF PROJECT:


(Rs.)1 Owen capital 73,00,000

2 Loan 56,00,000

Total 1,29,00,000

20

FINANCIAL PROVISION AND

SOURCES OF FINANCE

1) FINANCIAL PROVISION:


(Rs.)Loans(Rs.)

Own Capital(Rs.)

1 Land 25,00,000 10,00,000 15,00,000

2 Building 40,00,000 26,00,000 14,00,000

3 Machinery 25,00,000 10,00,000 15,00,000

5 Other Expenses 3,00,000 - 3,00,000

6 Working Capital 36,00,000 10,00,000 26,00,000

Total 1,29,00,000 56,00,000 73,00,000

2) DETAILS OF SOURCES OF FINANCE:

[Table No.8] No. Particulars Amount (Rs.)

1 Ownership Capital 73,00,000

Total 73,00,000

21

SALES, SALARY & WAGES, REPAIR &

MAINTENACE SCHEDULES.

1) DETAILS OF SALES:

[Table No.9]No. Details Rate Qty. Amount

(Rs.)1 AG-100 7,000 230 16,10,000

2 AG-125 7,500 300 22,50,000

3 AG-150 8,560 250 21,40,000

TOTAL 60,00,000

2) RAW MATERIAL:

[Table No.10]No. Details Monthly

(Rs.)Yearly(Rs.)

1 Raw Materials 2,50,000 30,00,000

3) SALARY & WAGES:

[Table No.11]No. Details Per Person Monthly

(Rs.)Yearly(Rs.)

1 Accountant 1 9,000 1,0,8000

2 Office Boy 2 6,500 1,56,000

3 Unskilled Workers 7 3,500 2,94,000

4 Watchman 2 3,000 72,000

Total 22,000 6,30,000

22

4) DEPRECIATION:

[Table No.12]No. Details Amount

(Rs.)Rate Total

(Rs.)

1 Machinery 25,00,000 10% 2,50,000

2 Building 40,00,000 10% 4,00,000

3 Motorcar 5,50,000 10% 55,000

Total Depreciation 7,05,000

5) ELECTRICITY:


(Rs.)Total(Rs.)

1 Electricity 6,000 72,000

6) REPAIRING & MAINTENANCE:


(Rs.)Total(Rs.)

1 Repairing & Maintenance 10,000 1,20,000

23

7) ADMINISTRATION DETAILS:

[Table No.15]

No. Details Monthly(Rs.)

Yearly(Rs.)

1 Printing & Stationery 1,500 18,000

2 Postage & Telegram 1,000 12,000

3 Telephone Expenses 2,000 24,000

4 Others 2,000 24,000

Total 6,500 78,000

8) INTEREST:

[Table No.16]No. Details Capital

Amount(Rs.)Interest (Rate)

Annual Rs.

1 Owners capital 73,00,000 10% 7,30,000

2 Borrowed capital 56,00,000 5% 2,80,000

Total 1,29,00,000 10,10,000

24

PROFIBALITY ANALYSIS

[Table No.17]NO. Particulars Amt.

(2013)

Amt.

(2014)

Amt.

(2015)

1. Sales (x) 60,00,000 64,00,000 72,00,000

Less: Cost of production

A) Raw materials 30,00,000 33,00,000 36,30,000

B) Salary & Wages 6,30,000 6,40,000 6,60,000

C) Electricity 72,000 78,000 82,000

D) Repairs & maintenance 1,20,000 1,37,500 1,51,250

E) Interest on capital 7,30,000 8,03,000 8,83,300

F) Depreciation 7,05,000 6,34,500 5,71,050

G) Administrative Expenses 78,000 85,800 94,380

H) Interest on borrowed capital 2,80,000 2,55,000 2,25,000

(y) 56,15,000 59,33,800 62,96,980

Gross Profit (a)=(x-y) 3,85,000 4,66,200 9,03,020

Less:

Up to 1,80,000 Nil Nil Nil

From 1,80,000 to 5,00,000

@ 10%

20,500 28,620 32,000

From 5,00,000 to 8,00,000

@ 20

Nil Nil 60,000

8,00,000 or above @ 30% Nil Nil 30,906

(b) 20,500 28,620 1,22,906

Net Profit (a-b) 3,64,500 4,37,580 7,80,144

25

BALANCE SHEET

[Table No.18]

PARTICULARS

Amt.

(2013)

Amt.

(2014)

Amt.

(2015)

Sources of Funds :

Own Capital 73,00,000 80,30,000 88,33,000

Net profit 3,64,500 4,37,580 7,80,144

Other liabilities (loan) 56,00,000 51,00,000 45,00,000

Total 1,32,64,500 1,35,67,580 1,41,13,144

Application of Funds:

Fixed Assets.

Land 25,00,000 25,00,000 25,00,000

Machinery 25,00,000

Less: Dep. 2,50,000 22,50,000 20,25,000 18,22,500

Motorcar 5,50,000

Less: Dep. 55,000 4,95,000 4,45,500 4,00,950

Building 40,00,000

Less: Dep. 4,00,000 36,00,000 32,40,000 29,16,000

Working Capital 3,00,000 3,30,000 3,63,000

x = 91,45,000 85,40,500 80,02,450

Current Assets

Debtors & Bills Receivable 36,00,000 42,60,000 49,28,241

Cash & Bank 5,04,500 6,22,280 9,11,803

Inventory(stock) 1,65,000 4,74,800 6,20,650

(a) 42,69,500 53,57,080 64,60,694

Less: Current liabilities

(creditors) (b)

1,50,000 3,30,000 3,50,000

Net current capital y = (a-b) 41,19,500 50,27,080 61,10,694

Total x + y 1,32,64,500 1,35,67,580 1,41,13,144

BREAK – EVEN ANALYSIS26

Break Even point is the situation or the level at which the level of the production of the

unit is such that all its costs are covered fully and there is no profit. This is also known as “No

Profit, No Loss” Situation.

BEP Analysis is must for every unit because it is to be represented to the banks while

applying for loans. A low break-even point is preferable because it shows that a firm can over its

cost within a short period of time.

No. Particulars Amount (Rs.)

Amount (Rs.)

A Sales 60,00,000

B Variable Costs

Raw Materials 30,00,000Repairs & maintenance 1,20,000Interest on capital 7,20,000Administrative Expenses 78,0000

Interest on borrowed capital 2,80,000 42,08,000

C Contribution [A] - [B] 17,92,000D Fixed Costs 14,27,500E Break-Even Point [D] ÷ [C] 79.66

RATIO ANALYSIS27

a. GROSS PROFIT RATIO: -

Gross Profit X 100

Sales Of year

3, 85,000 X 100

60, 00, 000

= 6.42%

b. Net Profit Ratio: -

Net Profit X 100

Sales of Year

3, 64,500 X 100

60, 00,000

= 6.075%

c. Return on Investment:-

Profit X 100

Capital Invested

3, 64,500 X 100

1, 29, 00,000

= 2.83

28

INTRODUTION

Personnel management is a part of management that dealing effective control and use

of man power. Humans have dynamic nature different person are having different nature,

behaviors man ability etc. so it is challenging job.

In brief we can say that personnel management is concern with 4M that is man,

money, machine and market. The man is only very active and important factor of the Production

department in the organization.

“Personnel Management is concerned with the planning, organizing, direction &

controlling the activity with procurement, development, compensation, integration, maintains

and separation of human resources to the end that individual, organizational and societal

objectives are accomplished.”

30

RECRUITMENT AND SELECTION

RECRUITMENT

Recruitment is to make prospective candidates apply for a Vacancy and

employ them by contacting various sources. It is to be made when an enterprise is established;

employee resigns, dies or retires. It can be possible in the following sources:

Generally ANGEL AIR COOLR makes three types of recruitment

procedure.

[Chart No.1]

31

Recruitment

Advertisement Contractor Direct recruitment

SELECTION:

When recruitment ends, selection starts. Selection is the process of choosing

the most suitable candidate out of total member of applicants. In Angel Air cooler

following steps or stages involved in selection procedure.

[Chart No.2]

32

TRAINING & DEVELOPMENT

In this company worker are trained by the head of the department. They are given

necessary training. For the worker training is given mostly on the job so that not only employee

but also mgt. comes to know the problem and can take corrective action to avoid it.

MANAGEMENT DEVELOPMENT is a systematic process of growth and

development by their abilities to manage. So it is result of not only participation in formal

sources of instruction but also actual job experience. As far as “ANGEL AIR COOLER” is

concern, it is medium scale industry then also company is providing Training & Development to

their worker and office staff.

There are two types of training are given in ANGEL AIR COOLER to employees:

1. On The Job Training

2. Off The Job Training

33

PROMOTION POLICY

Promotion is a very good policy in the organization. It is a useful for both employees and

organization therefore the need of a formal systematic programmed of promotion and this

promotion programmed can be said to be promotion policy.

Promotion is given to a person when the work of any employees comes at satisfactory

level at that time. The person has been get higher job than the existing job with the increasing

responsibilities and more wages is to be given employees get a motivation when he is promoted

for higher job.

The ANGEL AIR COOLER is a private limited so that it’s gives the promotion to their

employees as per his agreement and the performance of any employees is found to be satisfied

than and then. The management of given the permanently set up in the organization. ANGEL

AIR COOLER not only consider seniority base but also consider the qualification of the

employee. So that we can say that the ANGEL AIR COOLER gives the promotion to his

Employees on the bases of seniority and qualification of the person.

Definition:

“Promotion involves a change from one job to another that is better in term of

status and responsibilities”.

34

TRANSFER POLICY

This transfer is a process of employee’s adjustment with the work time and place. A

transfer is a horizontal or lateral management of an employee from one job section department,

shift, plant or position to another at the same or another place where his salary status and the

responsibilities are the same it generally does not involves a promotion, demotion or change in

the job status.

35

PERFORMANCE APPRAISAL

Performance appraisal is a systematic evaluation by the supervisor or some qualified

person of an individual worker’s performance .According to Yoder , “performance appraisal

refers to all formal procedures used in working organization to evaluate personalities and

contribution and potential of group members,”

The performance appraisal policy adopted by ANGEL AIR COOLER helps it to take

correct decision regarding promotion, transfer, posting, etc. for the employees.

At ANGEL AIR COOLER they believe associates and managers who are engaged,

developed and stretched need to be rewarded. To pay for performance is one of the guiding

principles of ANGEL AIR COOLER Compensation strategy. They offer compensation and

benefits programs that drive the achievement of their business objective .Their compensation

and benefits is benefits is designed to attract , motivate and retain associates that share

ANGEL AIR COOLER Values and contribute to their high performance organization

36

EMPLOYEE WELFARE & BENEFIT

Company has main objectives of profit maximization. But only profit maximization is not

important. They have many objectives and provide benefits and labor welfare one of them.

To motivate workers and feel them secure Angel Air Cooler doing many such activities

are as under:-

Medical Facility: “Angel Air Cooler” provides the facility of medical to their employees who

are working in organization.

Bonus:-“Angel Air Cooler” provides the facility of the bonus to their employee on well-known

festival like “Diwali”. Through this way organization can motivate the employee.

Special Leave: - “Angel Air Cooler” provides special leave to their employee on special

occasion like Marriage, and also in serious case. Company is not strict when they want to leave

for the genuine reasons if they have used their leaves.

Separate fund: - A separate fund has been created whereby workers contribute one-day salary

and the company is contributing the same. The money in this fund is proposed of workers.

“NPS” provides provided fund facility as per the government norms.

Safety of employees: A mass insurance is likely to be implemented in workers whereby each

worker would be insured of sum of Rs. 2 Lacs.

Entertainment facility: - Angel Air Cooler provides music system facility to the workers to

increase efficiency and to reduce burden of works. They have a good garden also if the employee

feel burden of work then they can go there to become fresh and enjoy good environment.

37

INTRODUCTION

Marketing Management today is the subject of interesting all types of organizations,

within and outside the business sector and in countries throw out the world.

“Marketing is a social and managerial process by which individual and group

obtain what they need and want, creating and exchanging, value and product with each

other”.

- Phillip Kotler

Marketing compels all activities involved in the determination and the satisfaction

of consumer’s need at a profit.

Marketing is a comprehensive term and it includes all resources and a set of

activities necessary to direct and facilitate the flow of goods and services from producer to

consumer in the production process. Human efforts, finance and management constitute the

primary resources of marketing. Marketing diminishes the gap between the producer and

consumer.

39

MARKETING MIX

These four ingredients are closely interrelated. Under the system approach, the decision

inane area affects action in the other. Marketing mix decision constitutes a large part of

marketing management. Marketing manager is a mixer of all marketing ingredients and he

creates a mix of all marketing elements and resources. Marketing mix offers an optimum

combination of all marketing ingredients so that we can have realization of company goals such

as profit, return on investment, sales volume, and market share and so on. It is the profitable

formula of our marketing operations.

The elements or variables that make up marketing mix are only four.

• Decision on Product or service

• Decision on Price

• Decision on Promotion

• Decision on Place/distribution

40

MARKET SEGMENTATION

Marketing segmentation means to divide a market into different groups of customers.

According to Philip Kotler marketing segmentation can be defined as

“The process of classifying customers into groups exhibiting different needs,

characteristics or behavior is called market segmentation. Every market is made up of market

segments”.

Say for example,

If a market is divided into two segments, one consisting of customers of metro cities and

the other consisting of customers of non-metro cities, the criterion adopted is geographic

segmentation.

Thus, there are different variables which can be used as criteria for market segmentation

like geographic, demographic, psychographic, behavioral etc. We follow geographic market

segmentation as our market for Air Cooler is concentrated mainly at Delhi, Mumbai, Chennai

and Bangalore.

41

CONSUMER BEHAVIOR

Today’s companies are facing their toughest competition ever. These companies can

outdo their competition if they can move from product and sales philosophy to a marketing

philosophy. We spell out in detail how companies can go about winning customers and

outperforming competitors. The answer lies in doing a better job of meeting and satisfying

customers’ needs. Only customer-centered companies are adept at building customers, not just

building product. They are skilled in market engineering, not just product engineering.

Consumer behavior is main part of marketing department. In Angel Air Cooler consumer

satisfaction is important. Thus Angel Air Cooler provided good quality product and after sales

service to his customers and give extra benefit to customer. Angel Air Cooler makes different

types of air cooler according to his customer needs. Thus Angel Air Coolers high demand in

market.

42

ADVERTISEMENT

Advertising is one of the five major tools a company uses to direct pursue

communication to target buyers and sellers. In the modern business world of transmission of

ideals, thoughts, views and development we cannot imagine a world without advertising.

Advertising is one of the five major tools a company uses to direct pursue

communication to target buyers and sellers. In the modern business world of transmission of

ideals, thoughts, views and development we cannot imagine a world without advertising.

For advertising the 1 st step is made is media selection. Angel air cooler uses following

media for advertising.

NEWSPAPERS

HOARDINGS

43

SALES PROMOTION

Sales promotion means special efforts made for sales. The importance of sales

promotion in modern marketing has increased mainly on account of its ability in promoting sales

and preparing the ground for future expansion. The main objective of sales promotion is to

attract the prospective buyer towards the product and induce them to buy the product.

Sales promotion is necessary for all organization. It consists a diverse collection of

incentive tools. Mostly short term designed to stimulate quicker and greater purchase of

particular products by consumers. Is is required for increasing the sales. It includes coupons,

demonstration, exchange offer, price off offers, context, etc.

Angel Air Cooler Issues stickers, calendars, and gives gifts to customers as well as

retailers, send greeting cards, etc.

The sales network of Angel Air Cooler in Gujarat, Maharashtra and other states.

44

DISTRIBUTION CHANNEL

“Channel of distribution is the set of marketing institutions participating in the

marketing activities involved in the movement of the flow of goods or services from the primary

producer to the ultimate consumer”.

“ANGEL AIR COOLER” Has following distribution channel.

[Chart

No.3] If company produce the consumer goods it is almost impossible for producer to sell the

product directly to the consumer.

45

COMPANY

DEALER

FINAL CUNSUMER

PRESENT POSITION & FUTURE SCOPE

Today, Air cooler proved its significance that it is a part of cooling. As there are very few

units in Saurashtra producing Air cooler, we have wider scope. Very first, our main aim is to take

over the market of Saurashtra. The unit will have an upper hand over the competitor’s due to

better marketing, personnel, finance & production within 2 years.

We utilize maximum we have, our capacity is to increase the capacity up to 90%. We

also change the air cooler’s feature, design and portability. We are going to introduce some new

air cooler.

Due to high profit volume ratio, we are able to repay the loan.

46

CONCLUSION

To conclude here we can say that SSI (Small Scale Industries) are contributing good

amount of contribution in the development of the developing country like India. In spite of

having such a big contribution, financial crisis has always being a big problem face by the SSI.

Here in case of Temperature Air coolers the problem of finance has fully been resolved by the

owners and the loan provided by the bank. This industry will grow very much faster in the near

future. Such industry has a full scope of development in the near future. The products

manufactured by this unit are in big in demand in present days and this product will have big

demand in the near future. The firm has used to its level best the present day technology and still

they are involving themselves in developing new and innovative product.

47

APPENDIX

Table’s details

TableNo.

Particular PageNo.

1 Details Of Land 21

2 Details Of Factory, Go-Down and Office – Room 21

3 Details Of Machinery 22

4 Fixed Capital And Fixed Cost 22

5 Working Capital Requirement 23

6 Total Cost Of Project 23

7 Financial Provision 24

8 Details Of Sources Of Finance 24

9 Details Of Sales 25

10 Raw Material 25

11 Salary & Wages 25

12 Depreciation 26

13 Electricity 26

14 Repairing & Maintenance 26

15 Administration Details 27

16 Interest 27

17 Profibality Analysis 28

18 Balance Sheet 29

48

Detail of Chart

Chart

No.

ParticularsPage

No.

1 Recruitment 34

2 Selection 35

3 Distribution Channel 48

BIBLIOGRAPHY

49

1. Desai Vasant, Small Scale Industries & Entrepreneurship, and 5th Revised Edition: -

2001.

Himalaya Publishing House.

2. Sharma Ravi. K. & Gupta Shashi K, Finance Management,

4th Edition 2003-04, Kalyani Publishers.

3. Kotler Philip, Marketing Management, Prentice hall of India, 11th Edition 2004,

Himalaya Publishing house.

50

air cooler project report

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