A Product Project Report On Gokul Cotton Seeds

Prepared By :- Baldha Parag G. Class :- T.Y.B.B.A. 1. Roll No.:- 26 Academic Year :- 2009-10 College:- Gyanyagna College of Sci. & Mgt. Submited To:- Saurashtra University Guided By :-Namita Talsania

DECLARATION
I undersined Baldha Parag G. the students of T.Y.B.B.A. of Gyanyagna college of Sci. & Mgt. Here, I declared that the project work present in this report is my own work and has been carried out under the guidance of the professor of Gyanyagna college of Sci. & Mgt. Rajkot. This project hadnot been submitted to any other University for any other examination purpose.

Date:Place:-

Students Sign

(Baldha Parag G.)

PREFACE
For economic growth and balanced structure development, small Scale industries are very important tool. It is considered highly for the creation of employment opportunities as well as development of enterpreneur skills. The better use of scare financial resources and appropriate technology is also ensuring by the small scale industries. In the growth rate of the country the small scale industries give vital contibution. Therefore, it is essential to understand and management and working of small scale industries as a student of business administration. Last but not least I thankful all those people who helped me direcly or indirecly to get necessary information during preparation of this report.

ACKNOWLEDGMENT
This product project report is a part of the subject Entrepreneur-ship and management of small scale industries. I am glad to submit to this report which includes the practical aspect of the industrial study. I am happy to express my deepest gratitude to all persons who spend their valuable time and help me a lot in preparing o this projects work. A successful challenge of visit to any industry gave me a chance to transfer it into a result. I am also thankful to Mrs. Namita Talsania for guiding me towards successful preparation of this project. I would like to express my opportunity to my friends and all people who have directly or indirectly help me in this project work.

Date:Place:-

Signature of student

(Baldha Parag G.)

INDEX
Sr.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Particulars Introduction of S.S.I. Project at a glance Bio-Data of owner Basis & Presumption Organization Structure Implementation Schedule Location Production Details Marketing Strategy Details of Raw-material Machines & Equipment Channel of Distribution Marketing Details Financial Details Sources of Finance Interest on Capital Profitability Analysis Break Even Analysis Ratio Analysis Risk Factor Future Plan Conclusion Page No. 06 07 08 09 10 11 12 14 15 16 17 18 19 20 23 24 25 26 27 29 30 31

INTRODUCTION
As per industrial act of indian industrial structure can be classified into three groups. Small scale industry, Medium scale industry, Large scale industry,

DEFINITION:An industrial undertaking in which the investment in fixed assets in plant and machinery weather held on ownership terms on least or on hire purchase does not exceed Rs.3 Cr. Small scale industries play a key role in industrialization of a developing country. The provide large scale employment, higher labors capital ratio comparatively and the need for shorter gestation period and relatively smaller markets to be economic. They need lower investment. They offer a method more equitable distribution national income and facilitate effective mobilization or resources of capital and skill which would otherwise remain unutilized. The industries stimulate growth of industries entrepreneurship and promote a more diffused pattern of ownership and location.

PROJECT AT A GLANCE
NAME OF THE UNIT :- GOKUL COTTON SEEDS PRODUCT NAME: - Cotton seeds ADDERSS: - shreenath Jining, Nr.Uday Farm, Rajkot Highway, Gondal. E-mail ADDRESS: - Gokulcottonseeds@yahoo.co.in SIZE OF THE ORGANIZATION: - Small Scale Industry FORM OF ORGANIZATION: - Sole Proprietorship BANKER: - State Bank of India ACCOUNTING YEAR: - 1st April to 31ST March SIS REGISTRATION NO: - Application has been made. SUBSIDY REGISTRATION No.:- Application has been made.

BIO-DATA OF OWNER
NAME: - Baldha Parag G. ADDRESS: - Sardar Patel Cowk, Hoklikathe, Jam-Kandorana. AGE: - 20 Years. QALIFICATION: - T.Y.B.B.A. With Finance (Running) FINANCIAL CONTRIBUTION: - 60% EXPERIENCE: - Fresher.

BASIS AND PRESUMPTION

The profit is drowning on the basis of the following Presumption. WORKING HOURS :- 18 hours WORKING DAYS :- 300 days TOTAL No. OF WORKING HOURS:- 5400 hours LABOUR CHARGES: - As per the wages act of state Govt. WORKING EFFICIENCY :- 90% RATE OF INTEREST ON :- 15% Fixed & working capital Rate of machinery and equipments Raw-material and other items is based upon the prices prevailing at the time of preparation of the project.

ORGENIZATION STRUCTURE

Organization Structure

Owner

Marketing Manager Salesman

Personnel Manager Office Staff

Finance Manager Accountant

Production Manager Production In-charge Workers

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EMPLIMATATION SCHEDULE
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. ACTIVITY Preparation of Project Selection of a site Registration of S.S.I. Availability of Finance Construction of factory Arrangement of Machinery Recruitment of Labor Other days for unexpected reasons TIMEREQUIRED 1 Month 1 Month 1 Month 2 Months 8 Months 1 Month 15 Days 1 Month

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LOCATION
Location is the prime factor to be considering for starting a new business. Location is a factor which influences success and failure of the firm. It plays a vital role in development of the unit. A goods and proper location may reduce the cost of production and distribution to considerable extent therefore site of factory should be selected very carefully. Location of an industry is a three step decision. Choice of region Choice of locality Choice of site I have taken into consideration of various factors while locating the industry. This unit is situated at Gondal. It is hardly 40 Km. away from Rajkot city. Therefore all the benefits which are attached with Jamnagar city will be available to unit. Here, all types of facilities like water, supply of electricity, communications etc. are easily available at reasonable rate.
MARKET:-

From marketing point of view we have best and encouraging market for our product because market for the cotton seeds is increase day by day because large No. of farmers are moving from grow a cotton in his farm. So, the market for our product is very high.
LABOUR:-

Availability of labor influence the selection of location unit requires both semiskilled and skilled labor. Both type of labor can be made available from the local area. So, availability of labors never creates problems.

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RAW-MATERIAL:-

Raw-material is the basic input, which must be given equal importance. The factory is located near the Raw-material Producing enter nearness to the source of Raw-material Reduce the cost of transportation. So, there is no problem of Raw-material for cotton seeds. The main Raw-material for cotton seeds is cotton.
TRANSPORTATION FACILITIES:-

Transportation is required for assembling of raw-material and distribution of finished product. As most of the raw-materials are available from nearness sources. So, it is easy to carry out by rickshaw. For the distribution of the finished product: - Matador, Maruti-van, will be used as the product is of light weight and not of costly nature it will not require any special type of facilities.
LAND:-

The basic necessity for each and every industry is land without land no industry can be come into existence. Near Gondal land is available at reasonable rate.
AVAILABLE OF INFRASTRUCTURE FACILITIES:-

All facilities like water, electricity, telephone, telegraph, postage etc are easily available from this location.

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PRODUCTION DETAILS
The basic raw-material of this product is cotton seeds. Generally the raw material is available from cotton and cotton is mainly depending upon agriculture. Our organization conducts raw material for the producing product from special farm because we are producing seeds and in seeds require special type of quality.

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MAKETING STRATEGY
Thus, the market is very vast and scattered yet another positive aspect is increasing rural and semi-urban markets. Some of the national brands are very well established but there are hundreds of local or regional brands catering to the vast market and new entrant would have to use. This competition good quality and competitive price coupled with well organized marking network shall be the critical aspects.

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DETAILS OF RAW-MATERIAL
Raw materials are a fundamental requirement for any organization. Our product GOKUL is mainly depending upon cotton that we make out from various areas. For producing the product we need only COTTON. After processing in cotton we get cotton-seeds.

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MACHINES & EQUIPMENT

Each and every unit used machines for the purpose of transfer raw material in to finished goods as are under:

Sr. No.
1. 2. 3. 4. 5.

NAME
Water Pump Millar Chemical Mixture Packing Machine Tractor

QUANTITY
10 4 2 3 2

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CHANNEL OF DISTRIBUTION
The channel of distribution plays an important role in market activity in the movement of flow of funds.

CHANNEL

The firm can use one level Distribution channel Producer Agent Consumer The firm can use zero level Distribution channel Producer Consumer

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MARKETING DETAILS
Marketing is must require to the organization. Its highly affect to the organization to go ahead. Target Market:Target market means decide a particular group for the particular product and try approach this types of customer. Target market for our product GOKUL COTTON GOODS is Middle class villages farmers

System of marketing:For our product GOKUL COTTON SEEDS we follow short run marketing. Marketing executive go village to village for marketing and are order from retailers and us order we produce the product. This type of marketing helpful to reduce product maintains cost and also we give agency to retailer for selling our products. Analysis of competitors:The main competitors for our industry GOKUL COTTON SEEDS are : INDUSTTIES NAME Rasi Seeds Vikram seeds Ankur seeds Ganga kaveri seeds PRODUCT NAME RCH-2 Vikram-5 Vikram-15 Jay, Akka. GK-205

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FINANCIAL DTAILS
Fixed capital : Land and building :NO. 1. 2. PARTICULARS Land Building Total SQURE METER 2,500 1,500 RATE/ SQ. M. 1,000 1,200 AMOUNT 25,00,000 18,00,000 43,00,000

Machinery & Equipment :NO. 1. 2. 3. 4. 5. MACHINERY Water Pump Miller Mixture Packaging Machine Tractor Total No. OF UNIT 10 4 2 3 2 PIRCE PER UNIT 10,000 2,00,000 5,00,000 90,000 5,00,000 TOTAL 1,00,000 8,00,000 10,00,000 2,70,000 10,00,000 31,7,00,000

Total fixed Capital :NO. 1. 2. 3. PARTICULARS Land & Building Machinery & Equipment Other Expenses Total AMOUNT 43,00,000 31,70,000 1,50,000 76,20,000

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 Working Capital :

Raw-Material :AMOUNT 5,00,000 5,00,000

NO. 1.

PARTICULARS Cotton Total

Salary of the Staff :No.of Workers 4 1 2 3 4 30 Salary 10,000 7,000 8,000 7,000 5,000 2,500 Total 40,000 7,000 16,000 21,000 20,000 75,000 1,79,000

NO. 1. 2. 3. 4. 5. 6.

PARTICULARS Manager Store-keeper Auditor Supervisors Skilled Worker Unskilled Worker Total

Other Expences (Utility) :AMOUNT 17,000 4,000 20,000 41,000

NO. 1. 2. 3.

PARTICULARS Electricity Water Dieses & Petrol Total

Other Contingent Expenses :AMOUNT 4,000 10,000 3,000 20,000 37,000

NO. 1. 2. 3. 4.

PARTICULARS Telephone Advertisement Repair & Maintance Insurance Total

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Total Working Capital :(Total

cost of Production) MONTHLY RS. 5,00,000 1,79,000 41,000 37,000 YEARLY RS. 60,00,000 21,48,000 4,92,000 4,44,000 90,84,000

NO. 1. 2. 3. 4.

PARTICULARS Raw-material Salary Other Expenses Contingent Expenses Total

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SOURCES OF FINANCE
NO. 1. 2. PARTICULARS Ownership Capital 60% * 80,00,000 Borrowed Capital 40% * 80,00,000 Total AMOUNT 48,00,000 32,00,000 80,00,000

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INTEREST ON CAPITAL
NO. PARTICULARS 1. Own Capital 2. Borrowed Capital Total AMOUNT 48,00,000 32,00,000 RATE 5% 10% INTEREST 2,40,000 3,20,000 5,60,000

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PROFITABILITY ANALYSIS
PARTICULARS Sales Less: Cost of Production E.B.I.T.:Less: Interest on Capital E.B.T.:Less: Income tax @ 35% AMOUNT 1,50,00,000 90,84,000 59,16,000 5,60,000 53,56,000 18,74,600

NET PROFIT:-

34,81,400

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BREAK EVEN ANALYSIS

It is scientific analysis which leads producers towards more systematic and scientific production planning or sales planning. It is because of break even analysis that the firm can accordingly work out the required size of the plant. By break even analysis the small scale entrepreneur can yet proper guidelines about volumes of sales to the achieved to avoid the clanged of loss.

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RATIO ANALYSIS
Return on Investment Ratio :-

Profit after Tax = Total capital investment 34, 81,400 = 80, 00,000 = 43.52 % X 100 X 100

Net Profit Ratio :-

Net Profit = Sales 34, 81,400 = 1, 50, 00,000 = 23.21 % X 100 X 100

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 Gross Profit Ratio :-

Gross Profit = Sales X 100

53, 56,000 = 1, 50, 00,000 = 35.71 % X 100

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RISK FACTOR
In many business weather small or big. There is always possibility happening something unexpected. That means there are some risks factors which affects the working of business. The risk may be due to technological changes in fashion, performance and attitude of people domination of big industry etc. In this unit there are also some risk factors which are as follows: Uncertainty of the rain may affect demand of the cottonseeds product. The production process of our product is more affected to atmosphere because chemicals use in product if it not done proper it harmful to product and it not give proper production. High competition also affects the firm. Sometimes requirement of farmer also change that also effect the demand.

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FUTURE PLAN
Every organization has own future planning organization tries to do something more earn with competition. To expand the sales and profitability regarding consumer satisfaction. To divert the business in another seeds product. We want to cover whole market that demand upon agricultural field in Gujarat and other States.

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CONCLUSION
From the project I learn lot I know how the practical and theorieal aspects are applied in the industrial. This project cannot be made without help of farmer because necessary information for this project is collect from the farmer. I tell source that I become helpful to the farmer directly or indirectly by preparing the project on GOKUL COTTON SEEDS.

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