cricket balls ppr

8/2/2019 Cricket Balls PPR

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A

PRODUCT PROJECT REPORT

ON

-: PERPARED BY: -

PATEL SAPAN B.

COLLEGE

H.N. SUKLA

ACADEMIC YEAR

2006 07

CLASS

T.Y.B.B.A.

ROLL NO.

SEAT NO.

- : SUBMITTED TO: -

Saurashtra University

-: GUIDED BY:-

Prof. Dr. M.M.Thaker


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I have undersigned Mr. Praful A. Chauhan a student of

T.Y.B.B.A. hereby declare that the project report is my own work and

has been carried out under the supervision on guidance of Prof. Dr.

M.M.Thaker , M.T.D.C.C. Rajkot.

This work has not been previously submitted to any other

university for any other examination.

Date :

Place : Rajkot

Signature

[Praful A. Chauhan]


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Small Scale Industry is the pillar of industrialised Indian

economy. In India, the S.S.I. provides more than five times

employement than the Large Scale Industry. More over, in a short time

preiod, S.S.I. I have made a notable contribution in the adoption of

modern techniques.

It is very good opportunity for me to submit this report for S.S.I.

under the prescribed syllabus of Saurashtra University, Rajkot. The

object of this report is to develop enterpreneur skills and awareness. For

this purpose the product of leather balls for cricket and hockey. This

project provided me with the knowledge of various aspects of launching

a new product in this era. I have tried my level best to make this report

most precise, relavant and in systematic manner.


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Time has no passage to mark its existance but we have language

to express. No doubt that the word Thanks is very small to express my

hearly feelings.

I sincerely express my gratitude and warm regards to our Prof.

Dr. M.M.Thaker for her valuable suggestion and guidance during my

work. I am also thankful to our Principal Mr. B.S.Dalsania of

M.T.D.C.C.

Last but not least, I am indeed thankful to my parents for their

moral support, encouragement and involvement in my mission and

other friends for their help and co-operation.

Praful A. Chauhan


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SR. NO. NAME OF THE TOPIC PAGE NO.

1 Introduction.........................................................................01

2 Project at a glance...............................................................02

3 Implimentation schedule....................................................03

4 Partners background..........................................................04

5 Justification of location.......................................................06

6 Basis and presumption.......................................................09

7 Pro. details...........................................................................10

8 Details of Raw material........................................................11

9 Use of application of product..............................................12

10 Market Potential..................................................................13

11 Process outline.....................................................................14

12 Capacity utilization..............................................................16

13 Financial aspects..................................................................1714 Fixed capital details.............................................................18

15 Working capital details.......................................................20

16 Total capital investment......................................................21

17 Sources of finance................................................................22

18 Interest on investment or capital........................................22

19 Depreciation schedule.........................................................23

20 Cost of production...............................................................23

21 Sales turnover......................................................................24

22 Annual fixed cost.................................................................24

23 Profitability analysis............................................................25

24 BEP Analysis........................................................................26

25 Ratio analysis.......................................................................27

26 Projection.............................................................................28

27 Future plan..........................................................................29


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S.S.I. is economic strength of country. This fact is realised by India

after independence. But in recent years, the S.S.I. of India has

undergone rapid changes and had flourished in India in earlytimes.

S.S.I. provides Raw Material to large scale units and to be partner of

success. The most important role of S.S.I. in Indian economy is as

greater of employment and equal distribution of income.

ROYAL Balls Ltd. is one of the unit of S.S.I. The purpose of this uit

is to create cricket and hockey balls from leather. Cricket and

Hockey are the two games which are very popular and played not

onlyin our country but all over the world. After partition of the

country in 1947, a large number of workers migrated to India. Theysubsequently settled down in Meerut and Jalandhar, where they

started manufacturing cricket and hockey balls.


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Name of the unit - Royal Balls Ltd.

Products Name - Cricket & Hockey balls

Address of the office - G.I.D.C. Metoda,

Plot No. 6

Form of the unit - Partnership

S.S.I. registration no. - Applied for

Location of the unit - ROYAL Entertainment Balls Ltd.

G.I.D.C. Metoda, Plot No. 6,

Rajkot.

Cost of production - 1, 12, 22, 307

Partners name - Vishal Maheta

Hiren Ghediya

Devang Kamdar

Subsidy registration no. - Applied for

BEP - 53.068 %


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Sr. No. Particular Period1 Collection of data 2 months2 Preparation of project report 1 month3 Locan formalities 1.5 month4 Selection of site 1 month5 Construction of building 3 month6 Machinery installation 1 month7 Recruiting personnel 1 month8 Selection of procurement 1 month9 Receipt of Raw material 15 days10 Obtaining power and water connection

and installation of power facilities

1.5 months

11 Registration of S.S.I. 1 monthTotal 24.5 months


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PARTNER 1

Name - Praful A. Chauhan

Age - 20

Address - Jay Bhim Nagar,

Kalawad Road

Rajkot .

Specialized subject- Research

Present activity - Promoter of the Star Engineers

Income - 1,00,000

Financial contribution 40%

Responsibility - Research and Development

Experience - Fresh


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PARTNER 2

Name - Makwana Nilesh

Age - 25

Address - Ambedkar Nagar,

Kalawad Road,

Rajkot.

Qualification - M.B.A.

Specialized subject- Financial management

Present activity - The M.D. of Star Engineers

Income - 50,000


Responsibility - Production Engineer,

Finance Deptt. & HRM

Experience - 3 years

PARTNER 3

Name - Devang Pandya

Age - 22

Address - Nirmal-Shanti, 7-Chhotunagar,

Raiya Road, Rajkot.

Qualification - M.B.A.Specialized subject- Marketing

Present activity - -

Income - -


Responsibility - Marketing Head, Chairman

Experience - -


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Site of selection is an important activity. Because a good location

may reduce the cost of production. Locating a business involves a

large relatively permanent investment. If the site selection is not

proper, all the money spent on factory building machinery and their

installation will go in waste and the owner has to suffer a great loss.

Therefore, the site for the factory should be selected very carefully.

According for our purpose industrial proposition at Metoda, GIDC,

Taluka Rajkot, District Rajkot, Gujarat state is selected by us.

All infrastructure facilities available the same place are as follows.

A TRANSPORTATION

The purposed factory will be at Metoda, Rajkot well

connected by three modes of transportation, Railway,

Roadway & Airway. The factory site is in proximity with the

Rajkot Railway Junction and Domestic Airport, the national

highway 8B and the state highway Ahmedabad-Rajkot-

Kandla.

The nearest international city is Mumbai 45 minutes

flying time and the nearest major port is Kandala 200 km. by

road. So all kind of transporting vehicle, truck, train, ship,

plane etc are available not to far from the site and hence our

location in respect of to transport availability for the product

concerned is the most suitable one.

B AVAILABILITY OF RAW MATERIAL


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Mainly for our product leather is needed and other raw

materials which are in detail given later in this report. All

those raw materials are available at Ahmedabad, Bombay,

Delhi & Chennai. Most of the raw materials are available at

Ahmedabad, which is hardly 235 kms away from our site. As

stated earlier, the transportation agencies services are easily

available at competitive price from Rajkot which minimizes

the cost. So, procurement and transportation of raw materials

is not a problem.

C MAN POWER

All manufacturing concern small or big always depends on

available man power skilled, unskilled, semiskilled. We have

also given a thought to this matter and found that ours is an

area cheep labour is easily available in our project. We had

60% workers labourers type and 40% skilled type. Twooptions are available with as for recruiting the skill

employees, first the Saurashtra University, IIT near Aji Dam

and B.K. Modi near Aji Dam in Rajkot and the Ahmedabad

city which is hardly 235 kms away from out site.

D MARKET

All products manufacturers always think about market of

these product. Our nearest and main markets are Bombay,

Delhi, Ahmedabad, Rajkot, Baroda, Jamnagar, Mahesana etc.

To our pleasure, some big parties have afford us to purchase

whole of our manufacture lost in full quality and also cricket

and hockey balls are needed by them. So, there is no problem

in marketing.


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E WATER FACILITIES

Water is not required for product purpose. It is required only

for domestic purpose. Arrangement will be made at the site

by installing tubewell.

F SOURCES OF FINANCE

Finance is oxygen or blood for the industry and thus the

procurement of finance is very vital. Proximity of the site, to

the Rajkot city makes the source of finance closes to the

concern. The various financial industries like the nationalized

banks, commercial banks, GSFC branch are located in Rajkot

city near to the site of the factory.

G OTHER FACILITIES

Along with all the above mentioned facilities, other facilitieslike, the insurance cos, tele-communication, medical

services, post-office services etc. are also available in the near

by area.


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The profit is drawn on the basis of following presumption.

1 No. of shifts - 2 shifts

Working days - 300 days

Working hours - 16 hours

2 The cost of land is based on the prevailing rates at

Metoda GIDC, Rajkot.

3 The interest rate and depreciation rate are fixed as

per the government specification.

4 The salary and wages have been decided on the basis

of local markets.

5 Break Even Point has been calculated on the full

capacity utilisation basis.


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Generally, these products are based on the leather, thread, cork,

polishes and wool are also used with leather in production on

cricket and hockey balls. The purpose of unit is to produce

qualitative product in the less cost.

To make proper and qualitative ball, proper shape, proper weight,qualitative leather, initial stitching etc. are needed. Because these

things are help the bowler in delivery and spinning the ball. In this

unit, four types of cricket balls are produced according to quality.

The hockey and cricket balls are duco finished. There is also the

demand for unglazed balls. So, unglazed balls are also produced in

this unit.


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Raw materials is one of the important things for production. If there

is no raw material then there would be no product of this unit.

Obtain most of its raw material from the local market.

The important raw materials required for the manufacture of cricket

and hockey balls are leather, thread, cork, polishes and wool.Fortunately all the items mentioned above except cork are

indigenously available. Cork will have to be imported. Thus, the raw

materials are available in open market in Gujarat. So, unit does not

find any difficulty in collecting raw materials.


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Cricket Ball (EXS1275) Description:Squeezable cricket ball. Minimum quantity

- 500. Please check current stockavailability.

Product Size: 70 x 70 x 70mmPrint Area: 40 x 40mm

Prices inclusive of print in one position. Screens are charged extra at 50 Rs per colour, perposition.over 500 over 1000 over 2500

1 Colour Logo Rs.300 Rs.400 Rs.5002 Colour Logo Rs.300 Rs.400 Rs.5003 Colour Logo Rs.300 Rs.400 Rs.5004 Colour Logo Rs.300 Rs.400 Rs.500


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Cricket is the most popular game in our country. While Hockey is

our national game and it is also popular. But compare with the

cricket, popularity of the hockey is less.

A ball is an important thing for these two games. We can say that

ball is blood for cricket and hockey. this unit produce qualitativeballs.

Care is to be taken to see that properly tanned leather is selected

and correct pattern cutting delivery and spinning Stitching also

provides the main strength to the balls. So, the balls are stictched

clamped in a special mould holding clamps to give the desired shape

of the balls. An attractive polish is needed. Hockey and cricket balls

are duco finished. Unglazed balls are also produced. These balls re

qualitative, strong, attractive and cheap.


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Hockey and cricket, these two games are very popular. These games

are played in all over the world. So, cricket and hockey balls are

demanded product.

Looking to the internal and increase in export demand, there is a

good scope for starting new manufacturing units in different partsof the country. Meerut, Jalandhar are the starting place or city,

where a large number of workers started manufacturing cricket and

hockey balls.

The demand for quality goods is increasing hence there is a scope

for another 10 to 15 new units every year. The raw materials

required for the manufacture of cricket and hockey balls are

indigenosly available. Even in rural areas, these games are very

famous.


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The heart of any unit is manufacturing department. This

department is also called lubricant oil of any unit. The main aim of

any industry is to manufacture something extra-ordinary which

attracts the customers. Let us see the process of manufacturing of

this unit.

Alum tanned leather is used in the manufacture of

hockey balls, while vegetable tanned leather is used in

manufacturing cricket balls. Properly tanned leather is

selected and correct pattern cuting is adopted.

Zicronium tanned leather is used for the manufacture

of first quality cricket balls. As regards other raw

materials such as thread, cork, polish and wool the

quality of material used depends upon the quality of

balls required to be supplied.

The cutting of pieces can be done manually as well as

by mechanical dicking process. Two sections are

stitched together in seamless stich which runs inside

the leather and are called cups. It should be nated that

there side not be more than 25 to 26 stitches in the

manufacture of joint otherwise the stitches might tear

the leather. Different types of raw materials are used

for different types of raw materials are used for

different quality for ex. For cheaper varieties the

mixture of rubber and cork mixtures are usd. Now dry


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the balls with the help of machines. Now press the cup

in such a way so that wrinkless do not appear in the

cup. Now dried cups are stitched by skilled workers.

The skilled workers are to be very careful when making

the final stitching in two parallel rows. Because it helps

the bowler in delivery and spinning the ball. After

stitching, electrically heated and good polish is needed.

There is also demand for unglazed balls.


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The total capacity installed is 25,000 balls per month. In the first

year, 50% of the capacity shall be utilized i.e. the month production

of balls will be 15,000. In the second and third capacity utilization

will be 60% and 70% respectively.

Actually the capacity of the unit is alwys fluctuating. At the time ofworldcup or cricket tournament, the demand of cricket balls will be

increased. So unit can produce more balls at that time.


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1 LAND, BUILDING & FURNITURE

Sr. No. Particular Cost1 500 sq.mtrs. of Land of Rs.600 per sq.mtr. 3,00,0002 4920 sq.feets of building of Rs.250 per sq.feet 12,30,0003 Furniture 1,00,000

Total 16,30,000

2 MACHINERY AND EQUIPMENTS

Sr. No. Particular Cost1 HP Motor (having capacity of 24 dozens balls) 14,00,0002 Power operated press 17,00,5003 Automtic injection moulding machine 10,00,0004 Stamping press qty. 3 9,00,0005 Automatic mixture machines with electrical (2) 8,75,000

6 Electric drying oven heated 2 7,50,0007 Electrification, installation and transportation

charges8 Other equipments 3,00,0009 Stitching frames 54,00010 Other office equipments 20,500

Total 70,00,000


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3 STATEMENT SHOWING TOTAL FIXED COST

Sr. No. Particular Cost1 Land 3,00,0002 Building 12,30,0003 Furniture 1,00,0004 Machinery & Equipments 70,00,000

Total 86,30,000


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1 RAW MATERIALS 5,50,000

2 SALARY AND WAGES OF TECHNICAL STAFF AND OFFICE

STAFF

Particular Qty. Per Person ValuePurchase sales manager 1 8000 8,000Production manager 1 8000 8,000Supervisors 2 2500 5,000Maintanance Engineers 1 4000 4,000

Accountant 1 3500 3,500Store Keeper 1 2000 2,000Computer Operator 1 2500 2,500Skilled workers 10 2400 2,4000Unskilled workers 15 1200 18,000

Total Salary 75,000+ 20% Benefits ( Labour Act ) 15,000Total 90,000

3 UTILITIES

Electricity 14,000Fuel 10,000Packing 7,000Total 31,000


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4 OTHER CONTINGENT EXPENSES

Postage & Stationary 2,000

Transportation 20,000Sales Expenses 5,000Repair and maintanance 2,000Insurance 5,000Telephone 6,000

Advertising and publicity 5,000Total 45,000

5 STATEMENT SHOWING TOTAL WORKING CAPITAL (MONTHLY)Raw material 5,50,000Salary & Wages 90,000Contingent Expenses 45,000Utilities 31,000Total 7,16,000

6 WORKING CAPITAL REQUIREMENT ( FOR 3 MONTHS )

Rs. 7,16,000 3 = 21,48,000

Fixed Capital 86,30,000Working Capital 21,48,000Total 1,07,78,000


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Particular Owned (35%) Bank (25%) IDBI (40%)Machinery 24,50,000 17,50,000 28,00,000Building 4,30,500 3,07,500 4,92,000Land 1,05,000 75,000 1,20,000Furniture 35,000 25,000 40,000

Working Capital 7,51,800 5,37,000 8,59,200Total 37,72,300 26,94,500 43,11,200

Bank Loan 13% 3,50,285

Owned Capital 10% 3,77,230IDBI 16% 6,89,792Total 14,17,307


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Machinary 15% 10,50,000Building 10% 1,23,000Land 10% 30,000Furniture 10% 10,000Total 12,13,000

Total requirement of working capital 85,92,000Department of Land 30,000Department of Building 1,23,000Department of Machinary 10,50,000Department of Furniture 10,000Interest on Bank Loan 3,50,285

Interest on Owned Capital 3,77,230Interest on GSFC Loan 6,89,792Total 1,12,22,307


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Yearly production : 15,000 12 = 1,80,000

Selling price Rs. 95 per piece

Total annual sales volume :

1,80,000 95 = 1,71,00,000

Dep. on Machinary 10,50,000

Dep. on Building 1,23,000Dep. on Land 30,000Dep. on Furniture 10,000Int. on Bank Loan 3,50,285Int. on GSFC Loan 6,89,792Int. on Owned capital 3,77,23040% on salary & wages 4,32,00040% other contingent exp. 2,16,000Total 32,78,307


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Sales Volume 1,71,00,000

- Cost of Production 1,12,22,307

----------------

Earning before interest & tax 58,77,693

- Interest on capital 14,17,307

----------------Earning before tax 44,60,386

- Income tax at 35% 15,61,135

----------------

28,99,251


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BEP = 100ProfitcostFixed

CostFixed

+

= 100251,99,28307,78,32

32,78,307

+

= 100558,77,61

32,78,307

= 0.53068 100

= 53.068


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1 ROI = 100InvestTotal

Profit

= 100000,78,07,1

28,99,251

= 26.8997 = 26.9 %

2 Net Profit = 100Sales

taxandinterestafterProfit

= 100000,00,71,1

28,99,251

= 16.95 %


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Statement showing sales for the next five year

Particular Year-1 Year-2 Year-3 Year-4 Year-5Qty. Sold

(PM)

15,000 18,000 21,000 24,000 30,000

Qty. Sold

(PA)

1,80,000 2,16,000 2,52,000 2,88,000 3,60,000

Selling Price

(PM)

95 95 95 95 95

Total sales

volume

17,100 20,520 23,940 27,360 34,200


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ROYAL Entertainment Balls Ltd. has specified future plans to

follow. It has fixed goals to be achieved in future. Certain future

plans of this unit are as under.

Company wants to increase its sales and profit and be a larbe

scale industry. Company wants to start the production of another balls, such

as footballs and volleyballs. Because after cricket, football is very

famous game.

Company wants to wider its network in whole country. For it

they are deciding to establish branches in most of the state in India.

Thus, this company has bright future vision and it wants to extend

its coverage.

cricket balls ppr

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