A Premier Women B-School with Indian Ethos and

Values

Herbal Bathing Soap manufacturing project

Submitted
Under
by:
guidance of
Annu Kanwar
Prof.
B.S.Rathore
 Promotors idea
We want start a herbal bathing soap manufacturing factory
because now a days people are moving herbal product.
Rajasthan is an great source of aloe Vera and multani mitti At
the starting company will be focusing on the bathing soap only
in future we will be also other products of this industry like
shampoo, hand wash, body wash. Starting of Business Company
has to suffer because there is big competition in this industry. To
overcome that we will make product different and also we will
use cost leadership strategy by utilizing local raw material and
labor.
 Company description
Name of the company
Praakrtic Soaps Enterprises
Product
Herbal bathing soaps
Multani soap
Aloe Vera Soap
Location
Lakshmangarh
Name of owner
Annu Kanwar
 Vision & Mission
Vision
Our vision is to be the world's most dynamic Natural products
company, creating sustainable solutions essential to a better, safer
and healthier life for people worldwide.
Mission
Our mission is to create value for customers and shareholders by
continually improving health, reducing preventable illnesses and
enhance beauty(feel) through the use of our soap. We want every
person feel beautiful.
 Core values
Integrity & Teamwork
We will work together on the principle of mutual trust & transparency
in a boundary-less organization.
Respect for individual
Recognize individuals contribution in the growth and development of
the company. Treat all employees and customer with respect and
dignity.
Creativity & innovation
Encourage creative experimentation, embrace new ideas and
institutionalize continuous improvement in all aspects of business and
performance.
Social responsibility
Dedicate efforts to the social and environmental issues to enrich the
quality of life of the community.
 Product Mix
There will be initially two types of soaps that will be manufactured:

Particulars Size Prize

Aloe Vera Soap

125g 20

75g 13

Multani soap

125g 50

75g 30
Industry Analysis
 SWOT Analysis
Strengths Weakness
Skin Friendly Not widely known to all
No age restriction customers
Absence of harmful Targeted only sikar
chemical

Opportunity Threats
Growing consumer market New Entrants
Top choice among Herbal Local competition
soaps Competition from already
existing
 Five Force Analysis
New entrants Suppliers
High R&D cost Low bargaining power
Less access to distribution Low impact of input on
Difficult to differentiate the differentiation
product

Competitors
Patanjali
Dove
Hamam
Himalya
Buyers Ojas
Threat From
High buyer profit
High switching coast substitutes
Less number of Only one: Liquid
substitutes Soap
 Objective Of Research
Forecast the demand
To Know about the demand and supply gap
what new could be offered for customer
What is the price range a customer is willing to pay
What variation could be brought in the product
What services do customers expects from a new firm
Are the customers satisfied from the existing products in the
market
 Research Methodology
Sampling Technique:
Convenience sampling Technique
Sample Size: The sample sizes for customers were 100 and for
manufacturers and retailers it was 10.
Nature of data
Primary
Secondary
Research Tool:
Questionnaire Method
Interview Method
 Demand
Particulars Yearly demand

Multani soap 11334753

Aloe vera soap 15652752

Total 26987516
 Supply
Particulars Yearly supply

Multani soap 11133156

Aloe vera soap 15374359

Total 26507516
Demand and Supply Gap
Particular Demand Supply Gap
s
Multani 11334753 11133156 201634
soap
Aloe vera 15652752 15374359 278366
soap
Total 26987516 26507516 480000
 Estimated Sales
The sales of the company are expected to grow by 10%
approximately every year
Year Sales Forecast (Rs.)

1 480000

2 528000

3 580800

4 638880

5 702768

Technical Analysis
 Land & Machineries
Land
We will require 3000 square feet

Machines & Equipment

Mixture
Triple Roller
Boulder
Cutting Machine
Packaging Machine
boiler
 Cost of project
Particulars Cost in Lacs
Land & Site development 400000
Building 400000
Plant & Machinery 450000
Miscellaneous Fixed Assets 80,000
Preliminary Expenses 20,000
Preoperative Expenses 10000
Provision for Contingency 10000
Working Capital Margin 50000
Total 1420000
 Employees Required
Type of Number Pay Scale Total Amount
personnel Payed
(per month)
Required
Manger 1 25000 25000
Accountant 1 11000 11000
Skilled 3 7000 21000
Semi-skilled 2 6000 12000
Unskilled 2 5700 11400
Sales Person 2 11000 22000
R/m 1 10000 10000
Security 2 6500 13000
Guard
Total 14 125400
Raw materials For one Month
S. Description Quanti Rate / Amou
No. ty Kg nt ()

1 Mulltani stone 9000kg 10 90000

2 Aloe Vera 10000k 5 50000
g

4 Coconut oil 600ltre 90 36000

5 Fate acid 800kg 50 40000
6 Caustic Soda 600kg 50 30000
7 Curcuma Longa 500kg 80 40000
8 Rose water 351litre 250 87750
Total 373750
 Utilities (for 1 month)

S. No. Description Amount ()

1. Electricity 12000

2. Water 8000

Total 15000
Financial Analysis
Profitability Estimates (Estimates of
Working Result)
1st year 2nd year 3rd year 4th year 5th year
Installed capacity in TPA 150 150 150 150 150
Production 60 75 90 113 128
Capacity Utilization(%) 40 50 60 75 85

A. Sales Realization 6900000 7590000 8349000 9601350 11041553
B.Cost of production 6439800 6924396 7454564 8306146 9280583
Raw Materials 4485000 4933500 5426850 6240877.5 7177009
Power & water 300000 306000 312120 318362 324730
Wages & Salaries 1504800 1534896 1565594 1596906 1628844
Factory Overheads 150000 150000 150000 150000 150000

C.Admn & Selling Expenses 130,000 140,000 157,250 165,763 176,551
Admn Expenses 30,000 35,000 47,000 50,000 55,000
Selling Expenses 100,000 105,000 110,250 115,763 121,551
Operating cost 6,569,800 7,064,396 7,611,814 8,471,908 9,457,133
D.Gross Profit Before interest 330,200 525,604 737,186 1,129,442 1,584,419

E.Total Financial Expenses 90000 75258 59042 41204 21583

F.Depreciation 148000 121390 99973 82683 68682

G.Operating Profit 92,200 328,956 578,171 1,005,555 1,494,154
 Cont.
E.Total Financial
Expenses 90000 75258 59042 41204 21583

F.Depreciation 148000 121390 99973 82683 68682

1,494,15
G.Operating Profit 92,200 328,956 578,171 1,005,555 4

H.Preliminary Expenses
W/O 30000 28000 26000 23000 20000

1,474,15
I.Profit/Loss Before Tax 62,200 300,956 552,171 982,555 4

J.Provision for Tax 15550 75239 138043 245639 368539

1,105,61
K.Profit After Tax 46,650 225,717 414,128 736,916 6

L.Less: Dividend (If Any) 0 0 0 0 0

N.Add: Depreciation 148000 121390 99973 82683 68682
O. V Preliminary
Performance Indicators
1 2 3 4 5
Year 0 year year year year year year

Net cash 21348 31677 42985 64560 10399

flow -1470000 8 4 7 2 10

NPV 219,074.69

IRR 18%

MIRR 16%
 Return on investment

ROI = (Net Profit / Total

Investment)*100
Thank you