ANATARAGNI 2010 - W.I.N - i.b

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ANATARAGNI 2010

MURATA MANUFACTURING CO. LTD.

PRESENTED BY:-

TEAM W.I.N



BUSINESS OUTLINE



EXECUTIVE SUMMARY

� Parent Company :Murata Manufacturing Co. Ltd. (Kyoto, Japan)

� The subsidiary will be located in Vishakhapatnam , as it is a SEZ

and has a port. The manufacturing unit of Samsonite is alsolocated in Vishakhapatnam which is adds to the advantage by

reducing the cost of transportation cost.

�

The Subsidiary Company will be providing the PiezotronicTechnology to the various products of Samsonite such as laptop

bags, suitcase, etc.



PARENT COMPANY PROFILE

� Murata Manufacturing Co., Ltd. is a Japanese manufacturer of

electronic components, based in Nagaokakyo, Kyoto.

� Started as personal venture in October, 1944 in by Mr. Akira

Murata.� Leading company primarily involved in the manufacturing of

ceramic passive electronic components, primarily capacitors, and

it has an overwhelming share worldwide in ceramic filters, high

frequency parts, and sensors.

� The company manufactures semi-finished products for various

electronic components and supplies them to its manufacturing

subsidiaries in Japan and abroad.



� Mission

To plant the seeds of new technologies and to bring these to

fruition for the benefit tomorrows society.

� Vision

to pursue total quality and customer satisfaction, whilecontinuously introducing innovative products in integrated and

inter-related technologies which will allow our company our

employees and other partners and other communities.

� USP

HIGH END LUGGAGES WITH CUTTING EDGE TECHNOLOGY



OBJECTIVES OF THE SUBSIDIARY



FINANCIAL OBJECTIVE



SOCIAL OBJECTIVE



ECONOMIC OBJECTIVE



CURRENT MARKET SCENARIO

� The global luggage market is growing with increasing

population, changing travel trends and spending habits.

� The market is taking a turn towards brands and fashion

products.

� A factor that has a substantial influence on the luggagemarket is changing preferences of consumers.

� since this type of technology has not been introduced in

India before, Murata will have an edge over the other

luggage and back-pack companies especially after the tie

up with Samsonite.



MODE OF ENTRY

�Murata Manufacturing Co. Ltd. will establish abranch office in India (a wholly owned

subsidiary).

� The branch office of the company will be

established in a SEZ (Vizag) in India.

� Murata Manufacturing Co. Ltd. will enter India

through the automatic procedure.



PROCEDURE OF THE MODE OF ENTRY



RISK ANALYSIS



EXTERNAL THREAT FACTORSTHREAT DESCRIPTIONS PROBABILITY

(H/M/L)

SPEED OFONSET

(S/G)FOREWARNING

(Y/N)DURATION

(L/I/S)

POWER SUPPLY LOW GRADUAL NO SHORT

TRANSPORTATION MEDIUM GRADUAL YES INTERMEDIATE

POLITICAL CONDITIONS LOW SUDDEN NO LONG

TECHNOLOGICAL CHANGES HIGH SUDDEN NO LONG

NATURAL CLAMITIES LOW SUDDEN NO LONG

LABOUR SUPPLY LOW GRADUAL YES INTERMEDIATE

CHANGE IN CUSTOMER

PERFERENCES

HIGH SUDDEN NO LONG

RAW MATERIAL AV. LOW GRADUAL YES INTERMEDIATE

STANDARD OF LIVING MEDIUM GRADUAL YES INTERMEDIATE

ECONOMY MEDIUM GRADUAL YES INTERMEDIATE



INTERNAL THREAT FACTORS

THREATDESCRIPTIONS

PROBABILITY(H/M/L)

SPEED OFONSET

(S/G)

FOREWARNING(Y/N)

DURATION(L/I/S)

BREAK DOWN OFMACHINERY

MEDIUM SUDDEN NO INTERMEDIATE

TRAINING LOW GRADUAL YES LONG

COMPANY IMAGE MEDIUM GRADUAL YES LONG

R&D HIGH SUDDEN NO LONG

FINANCIALCAPABILITIES

HIGH SUDDEN NO LONG

MANAGEMENT MEDIUM GRADUAL YES INTERMEDIATE



PRECAUTIONS



MARKETING



Segmentation

� Demographic segmentation:

For SYNERGY the main customers is going to be above 16 years

basically who want to electronics in their bags. The income levels

should be matching to upper middle class and higher class.

� Psycho graphic Segmentation:

We are looking for civilized Indian customers who are fond of

different types of travel bags.

� Geographical segmentation:

The prevalent atmosphere and lifestyle of India will determine the

success of the service to a large extent.



TARGETING

Upper-middle and High income groups: We are targeting this range of income groups as we are launching this service for those who are very

fond of travelling and using different types of bags.

Youth and higher age groups: We are targeting this particular segment

of age groups as we believe that it is mostly the youth or the working

class who want to travel to different places and need varieties in travel

bags.

Travelers: Due to its mini-form factor, Synergy is highly convenient tocarry along during journeys or trips. This is why it will be targeted at

travelers as well.



POSITIONING

� We will position Synergy as a technology for

lifestyle travel bags for the target customers.

� Synergy will represent durability with a

different technology making the journey of

the travelers more smooth and comfortable.



THE MARKETING MIX



THE TECHNOLOGY

Piezoelectric Material

will generate charge

when compressed

Electric Charge

This is what provides

charge

Lithium polymer

Battery

To store producedcharge for future use

Capacitor to store

chargeNot directly

connecting to battery

as it will not work

Electronic circuit

Selection unit to

provide power asrequired

Power to charge



HUMAN RESOURCE



Department Structure



SALARY BREAK UP

Employees

No. of

Persons

Salary Per

Head

Total Salary Per

Month

Salary Per

Annum

Chief Accountant 1 12,500.00 12,500.00 1,50,000.00

Accountants 4 8,500.00 34,000.00 4,08,000.00

Cleaners 4 4,000.00 16,000.00 1,92,000.00

Receptionist 1 6,500.00 6,500.00 78,000.00

Department Head 1 30,000.00 30,000.00 3,60,000.00

Research & Development 1 27,000.00 27,000.00 3,24,000.00

Production Manager 4 26,000.00 1,04,000.00 12,48,000.00

Researchers 6 21,000.00 1,26,000.00 15,12,000.00

Production Engineers 4 15,000.00 60,000.00 7,20,000.00

Unskilled Labourers 10 4,000.00 40,000.00 4,80,000.00

Skilled Labourers 60 6,000.00 3,60,000.00 43,20,000.00

Security 2 4,500.00 9,000.00 1,08,000.00

Total 98 1,65,000.00 8,25,000.00 99,00,000.00



HUMAN RESOURCES POLICIES



CORPORATE SOCIAL RESPONSIBILITY

� Creation of energy

� Re-chargeable Battery

�

Rain Water Harvesting� Modern business suitability

� Health



FEASIBILITY ANALYSIS



FINANCIALS



Salary Structure1st Year

Employees No. of Persons Salary Per

Head

Total Salary Per

Month

Salary Per

Annum


Accountants 4 8,500.00 34,000.00 4,08,000.00

Cleaners 4 4,000.00 16,000.00 1,92,000.00

Receptionist 1 6,500.00 6,500.00 78,000.00

Department Head 1 30,000.00 30,000.00 3,60,000.00



Researchers 6 21,000.00 1,26,000.00 15,12,000.00Production Engineers 4 15,000.00 60,000.00 7,20,000.00

Unskilled Laborers 10 4,000.00 40,000.00 4,80,000.00

Skilled Laborers 60 6,000.00 3,60,000.00 43,20,000.00

Security 2 4,500.00 9,000.00 1,08,000.00

Total 98 1,65,000.00 8,25,000.00 99,00,000.00



2nd year


Head

Total Salary Per

Month

Salary Per

Annum


Accountants 4 9,350.00 37,400.00 4,48,800.00

Cleaners 4 4,400.00 17,600.00 2,11,200.00

Receptionist 1 7,150.00 7,150.00 85,800.00

Department Head 1 33,000.00 33,000.00 3,96,000.00



Researchers 6 23,100.00 1,38,600.00 16,63,200.00




Security 2 4,950.00 9,900.00 1,18,800.00

Total 98 181500.00 907500.00 10890000.00

3 d Y



3rd Year


Head

Total Salary Per Month Salary Per

Annum


Accountants 4 10,285.00 41,140.00 4,93,680.00

Cleaners 4 4,840.00 19,360.00 2,32,320.00

Receptionist 1 7,865.00 7,865.00 94,380.00

Department Head 1 36,300.00 36,300.00 4,35,600.00



Researchers 6 25,410.00 1,52,460.00 18,29,520.00




Security 2 5,445.00 10,890.00 1,30,680.00

Total 98 199650.00 998250.00 11979000



SOURCE OF FUNDS

Source Amount

Murata Manufacturing Pvt. Ltd (Japan) 40,00,00,0000

Total 40,00,00,0000



INITIAL INVESTMENTParticulars Amount Details

ASSETS (A)

Land 30,49,20,000.00 Acquired in Vizag,it is a special economiczone. 1 acres of land acquired 7000 per.sq.ft

Construction Cost 2,70,00,000.00 The main building setup for the assembly of

various element to make the equipment.20000

sq ft construction @1350 per sq ft.

Secondary Constructions 27,00,000.00 Various storage house, boundaries of factories

and other construction. 820¶*12*9´ for

boundary wall construction.

Furniture and Fittings 3,34,600.00

Stitching Machinery 14,28,300.00 Various machinery that would be required for

assembling and stiching of the element on the

bag. Model number 591-c300@ 47610. 30 such

machines bought.

Computer Desktop 2,34,000.00 12 Compaq SG3510IL Desktops @ Rs.19500

Telephone and Internet 23,500.00 Airtel Telephone Connection Deposit ±

Rs.1800 and D-Link Wi-Fi Router ± Rs.2500and telephone(8) ± Rs.2400

Electrical Fittings 1,96,375.00 50 CFL Bulbs @ Rs.40, 25 Bajaj µEnergy

Smart¶ Fans @ Rs.1555, 5 units of 150W Street

yellow Colour Sodium @ Rs.4500 for

segregation area and Installation of Bulbs incl.

wiring @ Rs.7300, 10, 250W Flood Lights @

Rs.6500 and Installation of bulbs incl. wiring ±

Rs.26500, wiring for the office ± Rs.24200.

P i t 7 200 00 HP D4368 P i t @ R 3600 2



Printer 7,200.00 HP- D4368 Printer @ Rs.3600. 2

in number.

Rain Water Harvesting 15,500.00 Model set up by Hinren

Technologies Pvt. Ltd. (inclusive

of 1000 lt. tank).

TOTAL 33,68,59,475.00

START UP EXPENSES(B)

Legal Expenses 27,500.00 Application for SEZ ± Rs. 5000,

Unique Identification Number ±

Rs.100, Digital Signature

Certificate ± Rs. 400, PAN ±

Rs.12000 (Foreign Company),Other Expenses ± Rs. 10000

Trade License 2,500.00

Misc. Expenditure 1,50,000.00

TOTAL (B) 1,80,000.00

WORKING CAPITAL© 3,29,60,525.00 Cash and Bank

RESERVES AND SURPLUS(D) 3,00,00,000.00

GRAND TOTAL (A+B+C+D) 40,00,00,000.00



COST SHEETParticulars 2010-11 2011-12 2012-13

Total Cost Cost Per Unit Total

Cost

Cost Per

Unit

Total Cost Cost Per

Unit

Direct Cost:-

Raw Materials

Consumed:

Opening Stock of

Raw Materials

0.00 0.00 0.00 0.00 0.00 0.00

Add:- Carriage

Inward

36,000.00 0.14 37,800.00 0.15 39,690.00 0.16

Add:- Purchases 36,62,50,000.00 1,465.00 38,45,62,50

0.00

1,538.25 40,37,90,625.00 1,615.16

Less:- Closing Stock 0.00 0.00 0.00 0.00 0.00 0.00

Direct Wages 69,60,000.00 27.84 76,56,000.0

0

30.62 84,21,600.00 33.69

Prime Cost 37,32,46,000.00 1,492.98 39,22,56,30

0.00

1,569.03 41,22,51,915.00 1,649.01



Indirect Cost:-

Factory Overheads

Repairs and

Maintainance

24,000.00 0.10 25,200.00 0.10 26,460.00 0.11

Electricity 2,52,000.00 1.01 2,64,600.00 1.06 2,77,830.00 1.11

Works Cost 37,34,98,000.00 1,493.99 39,25,46,10

0.00

1,570.18 41,25,56,205.00 1,650.22

Office Overheads:-

Salaries 29,40,000.00 11.76 32,34,000.0

0

12.94 35,57,400.00 14.23

Stationery 24,000.00 0.10 25,200.00 0.10 26,460.00 0.11

Telephone bill 60,000.00 0.24 66,150.00 0.26 66,150.00 0.26

Conveyance 24,000.00 0.10 26,460.00 0.11 26,460.00 0.11

Health Insurance

Premium

96,000.00 0.38 96,000.00 0.38 96,000.00 0.38

Fire Extinguisher

Contract

7,200.00 0.03 7,200.00 0.03 7,200.00 0.03



Fire Insurance

Premium

15,950.24 0.06 15,950.24 0.06 15,950.24 0.06

Trade License

Renewal

0.00 0.00 1,500.00 0.01 1,500.00 0.01

Misc. Expenses 48,000.00 0.19 52,800.00 0.21 58,080.00 0.23

Cost of

Production

37,67,13,150.24 1,506.85 39,60,71,360.24 1,584.29 41,64,11,405.24 1,665.65



INCOME STATEMENTParticulars 2010-11 2011-12 2012-13

Income

Sales:-

Synergy 45,00,00,000 47,25,00,000 49,61,25,000

Total Income 45,00,00,000 47,25,00,000 49,61,25,000

Expenditure

Sockets 3,75,00,000 3,93,75,000 4,13,43,750

Lithium Ion Batteries 17,50,00,000 18,37,50,000 19,29,37,500

Wires 37,50,000 39,37,500 41,34,375

Piezoelectric Cells 15,00,00,000 15,75,00,000 16,53,75,000

Salaries 99,00,000 1,08,90,000 1,19,79,000

Transport 36,000 37,800 39,690Repairs & Maintenance 24,000 25,200 26,460

Electricity 2,52,000 2,64,600 2,77,830

Stationery 24,000 25,200 26,460

Telephone Bill 60,000 63,000 66,150

Conveyance 24,000 25,200 26,460

Health Insurance Premium 96,000 96,000 96,000



SALES BREAK - UP

1st year

Services Rates No. of Units in the year Total

Synergy 1,800 2,50,000 45,00,00,000

Total 1,800 45,00,00,000

2nd year


Synergy 1,800 2,62,500 47,25,00,000

Total 1,800 2,62,500 47,25,00,000

3rd year


Synergy 1,800 2,75,625 49,61,25,000

Total 1,800 2,75,625 49,61,25,000



BALANCE SHEETParticulars 31-03-2011 31-03-2012 31-03-2013

SOURCES OF FUNDS

Murata Manufacturing Co. Pvt. Ltd (JPN) 37,00,00,000.00 37,00,00,000.00 37,00,00,000.00General Reserve 3,00,00,000 3,00,00,000 3,00,00,000

Accumulated General reserve 1,42,64,229 2,91,94,497 4,48,07,521

Accumulated Profit 5,70,56,918 11,67,77,990 17,92,30,082

Total 47,13,21,147 54,59,72,487 62,40,37,603

APPLICATION OF FUNDS

Fixed Assets

Gross Blocks 33,68,59,475 33,49,77,772 33,32,56,063

Less: Depreciation 18,81,703 17,21,710 15,88,479

Net Block 33,49,77,772 33,32,56,063 33,16,67,584

Current Assets, Loans & Advances

Cash & Bank Balances (b/f) 13,62,23,375 21,26,56,425 29,23,70,019

Net Current Assets 13,62,23,375 21,26,56,425 29,23,70,019

Preliminary Expenses 1,80,000 1,20,000 60,000

Less:- Written Off 60,000 60,000 60,000

Preliminary Expenses A.W.O 1,20,000 60,000 -

CASH FLOW



CASH FLOWParticulars 31-03-2011 31-03-2012 31-03-2013

A. Cash Flow From Operating Activities

Net Profit After Tax 7,13,21,147 7,46,51,340 7,80,65,116

Adjustments for:

Depreciation 18,81,703 17,21,710 15,88,479

Miscellanous Expenses written off 60,000 60,000 60,000

Operating Profit Before Working Capital Changes 7,32,62,850 7,64,33,050 7,97,13,595

Net Cash from/(used in) Operations 7,32,62,850 7,64,33,050 7,97,13,595

B. Cash Flow From Investing Activities

Increase in Fixed Assets - - -

Net Cash from/(used in) Investing Activities - - -

Net Increase/(Decrease) in Cash & Cash Equivalents 7,32,62,850 7,64,33,050 7,97,13,595

Opening Cash & Cash Equivalents 6,29,60,525 13,62,23,375 21,26,56,425

Closing Cash & Cash Equivalents 13,62,23,375 21,26,56,425 29,23,70,019



DEPRECIATION CHART

Asset Original Value R.o.D Depreciation in 1st year Value after 1st

year

Building 2,97,00,000.00 5%

14,85,000.00 2,82,15,000.00

Furniture 3,34,600.00 18.10%

60,562.60 2,74,037.40

Computers 2,34,000.00 40%

93,600.00 1,40,400.00

Electrical Fittings 1,96,375.00 20.87%

40,983.46 1,55,391.54

Stitching Machinery 14,28,300.00 13.91%

1,98,676.53 12,29,623.47

Printer 7,200.00 40%

2,880.00 4,320.00

Total 3,19,00,475.00

18,81,702.59 3,00,18,772.41

Asset Value after 1st R o D Depreciation in 2nd Year Value after



Asset Value after 1st

year

R.o.D Depreciation in 2nd Year Value after

2nd year

Building 2,82,15,000.00 5% 14,10,750.00 2,68,04,250.00

Furniture 2,74,037.40 18.10% 49,600.77 2,24,436.63

Computers

1,40,400.00 40% 56,160.00 84,240.00

Electrical Fittings

1,55,391.54 20.87% 32,430.21 1,22,961.32

Stitching

Machinery 12,29,623.47 13.91% 1,71,040.62 10,58,582.85

Printer 4,320.00 40% 1,728.00 2,592.00

Total 3,00,18,772.41 17,21,709.61 2,82,97,062.80



Asset Value in 2nd year R.o.D Depreciation in 3rd year Value after 3rd

year

Building 2,68,04,250.00 5% 13,40,212.50 2,54,64,037.50

Furniture 2,24,436.63 18.10% 40,623.03 1,83,813.60

Computers 84,240.00 40% 33,696.00 50,544.00

Electrical Fittings 1,22,961.32 20.87% 25,662.03 97,299.30

Stitching Machinery 10,58,582.85 13.91% 1,47,248.87 9,11,333.97

Printer 2,592.00 40% 1,036.80 1,555.20

Total 2,82,97,062.80 15,88,479.23 2,67,08,583.57



BREAK EVEN ANALYSIS

PARTICULARS AMOUNT

FIXED COST 16,19,84,853.00

VARIABLE COST 21,66,94,000.00

SALES 45,00,00,000.00

CONTRIBUTION 23,33,06,000.00

P/V RATIO 51.84577%

BREAK EVEN ANALYSIS

( SALES) 31,24,36,005.00

BREAK EVEN IN MONTHS 8TH MONTH



PAY BACK PERIODPAY BACK PERIOD METHOD

YEAR CASH INFLOW

(Profit after tax but before depreciation and

other non-cash expenses)

CUMMULATIVE

CASH INFLOW

1 st year 7,32,62,850.00

2nd year 7,64,33,050.00 14,96,95,900.00

3rd year 7,97,13,595.00 22,94,09,495.00

4th year 8,21,05,002.00 31,15,14,497.00

5th year 8,45,68,152.00 39,60,82,649.00

6th year 8,71,05,196.00 48,31,87,846.00



Initial

Investment

40,00,00,000.00

Cumulative cash inflow of 5th

year is higher then the initial

investment. This implies that payback period is in the 5 and

half year. By the end of the 5th year it is Rs.43,31,87,846

Therefore time required in the 5th year to recover the

balance investment is 6 months app.

Therefore, the Pay Back Period is 5th year

and 6 months.



THANK YOU

WE ARE NOW OPEN FOR QUERIES

ANATARAGNI 2010 - W.I.N - i.b

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