ON

ESTABLISHING A SMALL SCALE INDUSTRY i.e.

MASALA FACTORY

PREFACEThe term “entrepreneurship” means risk bearer ‘as the demand of the current economic development, everybody is required to enter in to entrepreneurship to provide the job to other persons as well as to make our country’s economy strong.

As we are concerned we have studied entrepreneurship as a subject, and to gain the practical knowledge we are required to study techno economic feasibility of any project and for this purpose

CO-OPERATIVE dealing in masala and the brand name is LAXMI BRAND MASALA.

CONTENTSPrefaceAcknowledgeProject undertakenConcept of entrepreneurshipRelation between entrepreneurship & entrepreneurConcept of women entrepreneurProblem of women entrepreneurObjectives of the co-operativeOwnership selectedAdvantage & disadvantage of co-operativeMarketing researchSurveyClassification of the projectCharacteristics of small- scale industryVision & mission of the co-operativePlant layoutProduct manufacturing procedureFlow chartSize of the factoryLayout of the factoryFactories policies &guidelinesRole of finance, ratio analysisBranding &packagingMarketing strategyProcedure for registration of trademarkConclusion AppendixAbout a world’s great entrepreneur (Shahnaz Hussain)Bibliography

OWNERSHIP SELECTED

We have decided to work in a co-operative form of business ownership.

CO-OPERATIVE

The co-operative form of organization is based on the philosophy of self-helpand mutual help. It differs from the other three form of business ownership. The basic line of difference is a co-operative organization aims at rendering services in place of earning profits.

There are 5 members in our co-operative. Each member have a mutual understanding each other.we have trust on each other and on the basis of these we will successful in establishing a small scale industry i.e. MASALA FACTORY.

MAIN FEATURES:

Voluntary Organization

Service Motive

Government Control

Distribution of Surplus

Capital and return thereon

Democratic management

SURVEY

Survey is the most commonly used methods of primary data collection in marketing research. This is widely used because of its extreme flexibility. Also, it is the most abused method because many surveys are conducted where questions are biased or poorly stated, interviewers are poorly trained, or the sample interviewed is not really a representative of the population.

SURVEY TECHNIQUES:

Once the researcher has decided to use survey methods for collecting primary data, he should make a decision in connection with the techniques of survey or contact method, viz., personal interview, telephone survey, and small survey. This can do after evaluating each of these methods in view of research project undertaken. The evaluation of survey techniques can be conducted by analyzing the advantages and disadvantages associated with each of these. In the ensuing text, we take up for discussion each of these techniques.

PERSONAL INTERVIEW:

In personal interview, the investigator questioned the respondents in a face-to-face meeting. Personal interviews may be conducted on a door-to-door basis or in public places such as shoping centers. The usual approach for the interviewer is to identify himself to a potential respondent and attempt to secure the respondent’s co-operation in answering a list of predetermined questions. These answers may be tape-recorded or written down by the interviewer.

Despite high cost, the personal interview can provide critical types of information on knowledge, intentions, demographic characteristics, attitude, opinions, and life styles. In India, this method is very widely used and is considered as the most effective.

TELEPHONE SURVEY:

In telephone survey, prospective respondents are telephoned, usually at homes, and asked to answer a series of questions over the telephone.

This form of then survey technique has become more popular in recent years in advanced countries because more people are having telephones at their houses. In India, still this method does not find much use, as many homes do not have personal telephone systems.

VISION & MISSION OF THE CO-OPERATIVE

VISSION

PURE FOR SURE:

Our vision is to establish our product as a pure Masala Product, and thus making a competitive edge over our close competitors.

MISSION

To provide the hygiene & adulteration freeMasala’s to whole of the India.

PLANT LAYOUT

During the course of technical arrangement of various facilities such as machinery, equipment etc., it is very necessary to give considerable emphasis on a proper plant layout to achieving their optimum utilization. Like industrial location, plant layout also is of

great strategic importance. The reason is that once the plant and equipments are erected, it would be very difficult and costly to change layout. Therefore, one needs to keeping mind some important aspects while deciding the plant layout. These are:

(i) Production technology and production mix.(ii) Efficiency, economic and uninterrupted flow of men and

material.(iii) Adequate space for maintenance work.(iv) Scope for future expansion and diversification of the

project.(v) Adequate safety precautions, as and when needed.(vi) Healthy conducive layout of the plant.(vii) Proper lighting and ventilation.(viii) Proper provision for effluent disposal, if necessary.(ix) Effective supervision of all sorts of activities carried at

the plant layoutside.(x) Provision for proper storage, stocking space, etc., where

needed.

PRODUCT MANUFACTURING PROCEDURE

STEP-BY-STEP:

1. Factory purchased raw masala from the outer areas like Lucknow, Kanpur, Delhi and from other near by areas.

2. These masalas are exposed to direct sunlight for further drying.

3. Workers & the other dust particles now clean the dry masala properly, stones are thrown out.

4. Masalas are then sieved properly in thick sieves by the workers.

5. The cleaned masala are treated in machines for blending.

6. The blended masala are then gathered in large trays.

7. It is sieved through very thin sieves by the workers.

8. Now it is packed in the packets of 100gm., 250gm., 500gm., and 1kg.

9. The weighing and tacking procedure is done by the workers.

10. Lastly the packets of masala are prepared separately.

FLOW CHART

SIZE OF THE FACTORY

STONES AND OTHER DUST PARTICLES

CLEANED DRY MASALA IS READY FOR BLENDING.

BLENDING

SEIVING PROCESS BY THIN SEIVES

POWDERED MASALA IS READY.

PACKING& TACKING PROCESS

100 GMHaldi

250 GMmirch

500 GM.Mirch

1 KG.HALDI

DIFFERENT PACKS ARE READY

LAXMI BRAND MASALA factory is a small-scale industry. It has total turnover of 5crore rupees per annumn. Its total workers 60 out of which 40 permanent workers and other is on contract basis.

Total accommodation of converted area of the factory is1000 square feet, which is divided as:

Area covered by office: 100 square feet

Area covered by production work: 600 square feet

Area covered by product handling: 200 square feet

Area covered by electricity generator: 50 square feet

Area covered by parking for scooter, cycle etc.

LAYOUT OF THE FACTORY

FACTORY POLICIES AND GUIDELINE

HUMAN RESOURCE MANAGEMENT

REGULATORY LAWS

Modern business aims at social advantage also and, therefore, is characterized by the applicability of various laws to it. These laws have been passed by the Central and State Governments to regulate the running of the business enterprises whether large or small. It is necessary for the business owners, i.e. the entrepreneurs to have an enlightened awareness about these laws if not an expert knowledge of the same. With this in mind, below isgiventhe summarized guidelines of the different laws of which the business owners should be aware.

The Factories Act, 1948

Objectives: The main objectives of the factories Act, 1948 are two, first, it aims at to ensure adequate safety measures and promote the health and welfare of the workers employed in the factories. Second, it prevents haphazard growth of factories through the various provisions relating to the final approval of the project plant before a factory is actually created.

ScopeandCoverage: The act has a quite wide scope and coverage of all, aspects relating to factories in the country. These are the regulation of proper working conditions, ensuring the basic minimum requirements for safety, welfare, working hours, annual leaves of worker, covering all categories of workers working in the factory and applicable to all factories using power employing10 or

more workers and employing or more workers without using power on any day of the preceding 12 months.

The Industrial Disputes Act, 1947

Objectives: The main objectives of this Act are to provide machinery for peaceful establishment of workers’ committees to promote cordial and harmonious relations between the employers and the workers. The act also aims at to inquire into any matter connected with an industrial dispute, to refer individual disputes to grievance settlement authority, to prevent illegal strikes and lockouts; to prevent unfair labour practices and to provide for the payment of wages from date of award till final decision in the court.Scope and Coverage: - The Act applies to all industrial and

commercial establishment employing one or more workers but it does not apply to those who are employed in administrative and managerial capacities.

The Minimum Wages Act, 1948

Objectives: The main object of the Act to determine the minimum wages in the certain employment in the industry and trade where labour organizations like trade unions are either non-existent or ineffective.

Scope and Coverage: The Act is applicable to all employees engaged to do any work whether skilled or unskilled, manual or clerical in a scheduled employment including outgoing workers, fixation of minimum wages, etc.

The Employees’ Providend Fund act, 1952

Objectives: - The objectives of the Act as a piece welfare legislation is to make provisions for the security in old age after the employee retires or for his dependents in the case of his early death.

Scope and coverage: The Act covers all factories and establishments employing 20 or more employees, all persons employed directly or indirectly through contractors in any kind of work. The Act can be applicable to the Central Government establishments employing less than 20 workers if the majority of the workers so desire.

Main Provisions: The main provisions of the Act relate to the contributions towards employees’ providend fund by the employees and the employer.

The shops and Establishment Act

Objectives: This Act is passed with an objective to provide statutory obligations and rights to employees and employers in the shops and establishments, i.e., the major segment of unorganized sector in the country.

Scope and Coverage: As regards the scope of this Act, it has all India coverage. Of course, every State has framed its own rules for the application of the Act.TheAct is applicable to all persons employed in or about a scope or an establishment with or without wages. However, the employers’ family members, if any, do not come within the purview of this Act.

The workmen’s Compensation Act, 1923

Objectives: The Act aims at securing the payment of compensation by employers for injuries sustained by an employee in an accident occurred either in the course of or out of employment.

Scope and coverage: This Act is applicable to all over India to factories, mines, plantations, transport establishments and construction works. However, the Act does not apply to those establishments, which are not covered by the employees’ State Insurance Act. It is also not applicable to casual workers working in the factories.

POLICIES

POLICIES ARE AS UNDER: -

Wages.

Leave.

Payment for overtimes.

Payment of bonus.

Employee welfare.

Health and hygiene condition.

Compensation.

All other disputes to settled in court.

ROLE OF FINANCE

Finance is the blood of business that’s why the finance function assumes more significance because it plays important role in successful performance of all operation & managerial function though there are other basic function also like production, marketing etc.

The industrial development of the last 60 years or so has made finance management an indispensable part of business management.

“A firm’s success & even survival, its ability and willingness to maintain production and to invest in fixed or working capital are to a very considerable extent determined by its financial policies, both past and present,”in fact, the financial manager is now being placed at central focal point of modern corporate organization changes & revolutionary changes in financial management. In addition to Ezra Solomon,

“Financial management is properly viewed as an part of overall management rather than as a staff specially concerned with fund raising operations. In addition to raising funds, financial management is directly concerned with production, marketing & other functions within an enterprise whenever decisions are made about the acquisition or distribution of asset.”

It is often said that now a days, financial mgt. Watches & cases various development activities affecting liquidity & profitability of the firm. Few activities to be cased for:-

High cost of financing the risky investment due to capital-

intensive environment.

High rates of inflation affective firm are forecast and planning.

Diversification by the firm of various business markets and

products.

Last but not least, the sound finance decision not only affects the production and distribution but also affect the factory profitability and liquidity.

FORM OF FINANCE:

Because we are working in a co-operative form of business ownership, then the form of investment is also co-operative. No loan is required because all the investment is in co-operative form.

SURPLUS SHARING RATIO:

On the basis of the capital invested the SDI CO-OPERATIVE have decided to surplus the ratio of 1:1:1:1:1.we will try to maintain current ratio as 2:1.Surplus sharing ratio is depending on the basis of the profit of the factory. Surplus sharing ratio is the amount, which include only the net profit of the factory.

The investment is on the raw product, on machinery, on wages, on labour, on packing, on tools, on electricity, on entertainment, on publicity of the product etc.

BALANCE SHEET:

All the liabilities and assets of the factory are shown in balance sheet at the last of the year ending 31st march.

AUDITING:The audit is done by a C.A. All the information of sales and purchase, cash& cheque are included in this sheet. The C.A. approved this sheet by his /her authority. Then this approved sheet is transfer to the income tax department for the tax according to the income.

SALARY OF THE WORKER:

The salary of the workers is on the basis of the placement. There are many jobs in the factory and every person can not do every work. A broad-minded worker does the weighing work.Every year 10% of the salary is increased. The special package of the gift is given to the workers occasionally.The salary of the finance manager& the supervisor, mechenic is 7000 Rs./month There are also some workers in the factory on the daily basis.

RETIREMENT:

There is not any specific rule of the retirement. A worker can leave any time but for this he or she will have to inform the owner of the factory before the 8 days.

BRANDING AND PACKAGING

BRANDING:

The word ‘branding’ has its origin to the word ‘brand’. A brand is a name, word, symbol or a mark used to identify a product and to differentiate it from the competitive products.According to American marketing association:“A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.”Branding is a process of assigning a distinct name to the product so as to differentiate it from the competitive products of similar nature. If the brand is given a name, it is called ‘brand name’. Examples of brand names are Colgate toothpaste, liril soap, godrej refrigerator etc. in order to have a unique identity amongst the competing products; each brand is assigned a mark called ‘brand mark’. A brand mark is a symbol or mark used for the purpose of identification of the product.

When the brand name is registered under the trade and merchantile marks act, 1958, it is called ‘trade mark’. A trademark is the legalized version of a brand. Trademark is shown by displaying the letter R enclosed in a circle, shown as R

R

LAXMI BRAND MASALA

Packaging:

Packaging is considered as an important element of product mix. Some markets even consider it as a ‘fifth P’along with product, price, promotion and physical distribution. Packaging has been variously defined. One of the most quoted definitions is “packaging is the art, science and technology of preparing goods for transport and sale.” Thus, packaging has two salient aspects: (1) it helps in the physical distribution/ transportation and sale of the products; (2) it performs the functions of selecting package design and packaging material. In other words, packaging means the activities of designing and producting the container or wrapper for a product. The container or wrapper is called the ‘package’.

LAXMIBRAND

MASALA

HALDI MIRCH DHANIA

500 gm.

PACKAGE OF

MASALA

MARKETING STRATEGY

The strategy of marketing is through various sources, these are:

Local newspaper: the factory gives the advertisement in the local and outer newspaper. The information of the product is given in this and the name and brand of the product is also included in this.Radio: it is another audio source of advertisement. With the help of radio the quality, name and brand of the product is reach to the persons.

Pamphlets: it is video aid of advertising the product. The brand name, product qualities, price and factory name and address are given on this and these are distributed in the main and crowdy areas of the city.

Billboards: it is a type of video advertising. In this all information related to the product is written by marker or paint and these are hold on poles of the roads from both sides of the road.

CHANNELS OF DISTRIBUTION:

THROUGH RETAILER

PROCEDURE FOR REGISTRATION OF TRADE

MARKA trademark is a visual symbol, which applied to goods, or merchandise and the mark may consist of a device (like lion or butter fly) or a word like (binaca or dalda) or letters like (KDEF or ISI) or numerals (like 501) or a combination of such features. The mark is applied to all saleable goods with a view to indicate to the purchaser that the goods emanate from a particular source (i.e. from the owner, the said owner of the mark be an actual manufacturer, or a mere seller or other type of dealer). Whether the public knows the exact owner of the mark or not, the trade mark serves as a strong medium of advertising good and the goods become popular under the mark. Once the mark attains popularity, it becomes the most valuable mark in the industrial property.For the registration of small-scale industry the owner have to contact to the DIC of respective district.

CONCLUSIONWe have decided to establish SDI CO-OPERATIVE dealing in production of MASALA and brand name as ‘LAXMI BRAND MASALA’.The total investment of our co-operative is 25 lakh. The raw material used for the production is dry masala, which are purchased from Lucknow Delhi and other near by local areas.

If we take 1 quintal of raw product then we get 80 kg. Ready product. The total manufacturing cost of the product is 25Rs/kg of coriander powder, 30 Rs./kg. Of turmeric powder, and 45 Rs./kg of red chilly powder. The total selling cost of the product is 40 Rs. /kg of coriander powder, 50 Rs. /kg of turmeric powder, 75 Rs. /kg of red chilly powder. The total profit of the co-operative is 35% of the investment.

APPENDIX

For getting the awareness about the masala we get some information from the housewives through telephonic interview and by questionnaire. The sample of the questionnaire is as follows:

QUESTIONNAIRE

Name………………………………………………………………Age………………………………………………………………...Sex…………………………………………………………………Address……………………………………………………………Phone no…………………………………………………………..

Q. What type of masala do you prefer? Hand made Ready-made masala

Q. If you use readymade masala then which brand?Ashok masala MDH masala

Everest masala Goldie masala

Q. If your favorite brand is not available then will u may switch on to other substitute?

Yes No

Q. What thing you prefer whole purchasing a masala?Quality QuantityTaste Colour

Cost

Q. From how many years you are using this brand?

Q. If we will launch a new brand of masala then will you prefer it for using?

Yes No

THANKING YOU

TELEPHONIC INTERVIEW

Q. What is your name?Q. Where do you live?Q. Which type of masala do you use in cooking? Readymade or home madeQ. Which brand of masala do you use?Q. From how many years you are using it?Q. Would you like to use a new brand masala?Q. What is the best feature of the brand you are using?

Thanking you.