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A
PRODUCT PROJECT REPORT
ON
CANNED
MUSHROOMS
Name : JHALA AVANIBA N.
Roll No. : 16
Class : T.Y.B.B.A.
Year : 2006 2007.
College : Shri J.H.Bhalodiya womens college
* Submitted To *
Saurashtra University RAJKOT.
* Guided By *
Prof. Vijay Bhatasna
Prof. Smita C. Vyas
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* DECLARATION *
I Jhala Ananiba N. the students of T.Y.B.B.A. in shri
J. H. Bhalodia womens college, here declare that the project
work presented in tis report is my own work & has been carried
out under the supervision of Prof. Smita C. Vyas of Shri J. H.
Bhalodiya womens college.
The work has not been the submitted to any other
university for any examination.
Date :
Place : RAJKOT
SignatureAvaniba Jhala
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* PREFACE *
For a Socio-economic growth & balanced structure
development, small scale industries are a very important tool. It
is considered highly for the creation of employment
opportunities as well as development of entrepreneur skills. The
better use of scarce financial resources & appropriate
technology is also ensuring by the small-scale industries.
In the present era of big industries global
competition, the condition of position of SSI is not in the best
form. So, there is a great need to change the style of
management. In the syllabus of T.Y.B.B.A. university has
include the subject of entrepreneurship & management of smallbusiness. The main use of this subject is to teach, to solve
problems & to take decisions I the management of small
business.
I am extremely, happy to submit this report for SSI,under the prescribed syllabus of Saurashtra university. I have
got a chance to acquire practical knowledge at the time of
collecting information. I have prepared a project a report on
Canned mushrooms. I have tried my level best to make this
report most presice, relevant & systematic.
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* ACKNOWLEDGEMENT *
Successful accomplishment of any work requires co-
operation, help & guidance from many people. I had a wonderful
opportunity to make a product project report on Canned
Mushrooms as a part of my practical training in T.Y.B.B.A.
This report would not have been possible without the
help of many people whom I would like to acknowledge & thanks
for their kind co-operation.
First of all I thanks Shri J. H. BHALODIA
WOMENS COLLEGE RAJKOT. For giving me opportunity of
doing product project report.
I would like to thank my respected principal Mr. N. H.
KORINGA for giving me such an opportunity to have an insight
into the small scale business work in the form of this product
project report.
I specially thank Prof. SMITA VYAS H.O.D for
giving me important guidance for making the project informative
& well constructed. She had spent her precious time for my
product project report. It would be impossible for me to
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complete this project without her important instructions 7
supervision.
I thank All My FRIENDS AND CLASSMATES forgiving me important guidance, which is very helpful for me to
complete my project in perfect time duration.
I thank All HIDDEN PERSONALITIES, who played
important roles to complete my product project report
successfully.
At last, but not least. I thank MY PARENTS &
FAMILY MEMBERS to give me every kind of support & almighty
the GOD for helping me out whenever I viewed an obstacles, as
they have left no stone unturned & betterment.
Date :
Place : RAJKOT
Signature
Avaniba Jhala
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* MAIN INDEX *
No. Particulars Pg. No.
1. Introduction to S.S.I.
2. Project at a glance3. Bio-data of partners
4. Basis & Presumptions
5. Organizational structure
6 Implementation schedule7. Location Justification8. Portrait of Product
9. Details of Raw-Materials
10. Marketing Analysis11. Production process
12. Quality control & standards13. Production capacity
14. Pollution control
15. Energy conservation16. Machinery Utilization
17. Financial Aspects18. Financial Analysis
19. Profitability Analysis
20. Break-even analysis
21. Computation of Ratios22. Risk factors23. Benefits for Export-oriented unit
24. Future prospects
25. List of Suppliers26. Conclusion
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* PROJECT AT A GLANCE *
Name of the unit : Varni canned mushrooms
Address for Communication : Varnicanned mushrooms,
Sir Lakhajiraj road,
RAJKOT.
Type of the unit : Partnership firm
Location of the unit : Varni canned mushrooms
G.I.D.C., Metoda
Kalawad roadRAJKOT.
Name of the product : Canned mushrooms
[Export orinted]
S.S.I. registration no : Applied for
Partners name : Ananiba Jhala
Kripalsinh Rana
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Brand name : Healthy Bite
Banker : ICICI* BIO-DATA OF PARTNERS *
PARTNER I
Name : Jhala Avaniba N.
Address : Pramukh Drashti,
29, Sadguru nagar,
Opp. Ruda-2
Kalawad road,
RAJKOT 360005.
Educational Qualification : M.B.A. With Marketing &
Finance.
Age : 24 yrs.
Experience : 2 yrs.
Financial contribution : 25%
Role in the unit : Managing Marketing & Finance
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*PARTNER II *
Name : Rana Kripalsinh N.
Address : Pramukh Drasti,
29, Sadguru nagar,
Opp. Ruda 2
Kalawad road,
RAJKOT 360005.
Educationsal Qualification : M.D. [Medicine]
Age : 28 yrs.
Experience : 2 yrs.
Financial contribution : 15%
Role in the unit : Research activity
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(i) Building @ 5% &
(ii) Plant & Machinery @ 20%.
9. Interest on total capital investment has been taken @ 14%
per annum.
10. Minimum 40% of the total investment is required as
margin money.
11. Pay-back period of the project will be 7 yrs. with yearly
Installments.
12. Break-even point has been calculated on full capacity
Utilization.13. For smooth functioning of the unit, it is suggested that
unit should have own arrangements for cultivation of
mushroom for consistency & regular availability of quality
raw-materials.
14. Mushroom cuttings/stems can be utilized for preparation f
mushroom pickles & sold in local markets to get additional
profit.
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*ORGANISATION STURCTURE *
Board of Directors
M. D. / Chairman
V.P./E.P. V.P./E.P V.P./E.P V.P./E.P
(Production) (Marketing) (Finance) (Personnel)
Manager Manager Manager Manager
Assistance Assistance Assistance Assistance
Salesman
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* IMPLEMANTATION SCHEDULE *
The following steps are involved in implementation of
the project.
1. Selection of site
2. Form of ownership
3. Feasibility report
4. Registration with D/C.
5. Arrangement of finance (term loan & W.C.)
6. Construction of factory shed & Building
7. Procurement of machinery & Equipment
8. Plant erection & electrification
9. Recruitment of manpower
10. Arrangement of raw-material including packaging
material.
11. Selection of marketing channel
12. Miscellaneous: Power & water connection, pollution
control board, clearance etc.
As it is a 100% export oriented unit of canned mushroom,
normally project. Efficient planning & simultaneous operations
will be major factors for timely stare of the production.
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* LOCATION JUSTIFICATION *
Location is the prime factors to be considered for
starting a new business.
Location of plant or industry means a scientific
choice of a region or specific sight in a region where the
business unit is to be situated.
In other words the main object of an industries is
to maximize profit through minimization of production &
distribution cost. The objective is realized only if the firm is
located at a place which offers all economics of production &
distribution.
The location should be either near to the customer
i.e. market or where raw-materials is easily available. The
location should be such which can provide ancillary facilities like
water, electricity, communication, transportation & easy
availability of labour. In other worlds it can also be said as :
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Selected location on one side can earn variety of
benefit & any mistake in selection of location on the other side
can result in a great loss.The following factors have been considered at the
time of choosing the above location.
Raw-materials:
The major component or major input which is an
inevitable part of any production process is the availability of
raw-material. Raw-material at proper time & at reasonable cost
& in right quantity directly affects the price of he final product.
Availability of labour:
Availability of labour influences the selection of
location. Unit requires both semiskilled & skilled labors. Both
type of labour can be made available from the local are so
availability of labour never creates problems.
Transportation facilities:
Transportation is required for assembling of raw-
materials & distribution of finished product.
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For the distribution of he finished product, trucks,
rickshaw will be used & for a exporting out of the nation ships
will be used. As the product is of lightweight & not of costlynature.
Land:
The basic necessity for each & every industry is land
without land no industry can be come into existence. Our unit is
situated at Veraval-shaper.
Water & Electricity:
This area has no problem of water & electricity is
also easily available with the help of the PGVCL.
Other anciliary services:
Rajkot is considered as the main hub of Saurashtra
region as far as banking, insurance, technical assistance etc. isconcerned.
Hence, it can be concluded that selection of location
of unit is really necessary as it helps a lot in lowering the cost of
production.
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* PORTRAIT OF PRODUCTS *
Mushroom, a fungus trait body, is considered a
delicious food all over the world because of its taste aroma &
structure. It is full of nutrients, low in calories, high in proteins,
vitamins, minerals & a rich source of folic acid. It is an alternate
choice for weight conscious people & anaemic patients. It has
4.9% protein content which is more than cow-milk, green-
vegetables such as beans etc.
Mushrooms are highly perishable commodity & should
be marketed & consumed as soon as possible after harvest
because of their high moisture content (90.92%). However, its
shelf-life can be enhanced for a larger period by way of
processing. Generally mushrooms are processed-frozen dried &
canned.
This project profile has been prepared for canning of
mushrooms, for a 100% export-oriented unit. The agricus
bisporus [white button] type of mushroom is suitable &
preferred for commercial canning.
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* DETAILS OF RAW-MATERIALS *
No. Particulars Quantity Rate
(in Rs.)
Amount
(Rs. In lakhs)
1. Mushrooms AGrade(canningQuality)
55 tonnes 35,000 19.25
2. Salt, sugar, criticAcid, chemicals,preservations.
L.S - 0.25
3. A-21/2 can 75,000 12.00 each 9.00
4. Carton Boxeslabels, Gums, Box
6,250 15.00 each 0.94
5. Serapping etc.wastage of canescartons
L.S. - 0.85
6. Boxes, labels etc. L.S. - 0.15
Total 30.44
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*MARKETING ANALYSIS *
INDEX
No. Particular Pg. No.
1. Market Potential
2. Market channel
3. Pricing decision
4. Promotion Decision
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* MARKET POTENTIAL *
It has been estimated that the export market of
canned mushrooms in the world trade is about US $ 1000 million.
The world trade of mushroom is expected to reach a staggering
figure of US $ 15 billion by next 5 years.
The present global demand of mushroom is about
1,15,000 tonnes per annum. It is also estimated that the gap
between the demand & supply of mushroom in the world market
is around 25 lakh tones. The consumption of mushroom is going
up at the rate of around 10% in international market.
At, present, china, Taiwan & Indonesia are the main
producers of mushroom products which also capture the major
share of world market over 50% of the total world production
of the mushroom, is sold in fresh form, mainly in producers
domestic markets. The balance is processed. i.e. dried, frozen,
canned etc. It has also been estimated that 50% of the
mushrooms for processing are canned.
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The major importing countries are Germany, U.S.A.,
Canada, Japan, Australia etc. In India, Present production is
around 30,000 M.T. as per the information available fromAPEDA(2001-2002) 15897 M.T. of mushroom of he value of Rs.
72,47,54,829 is exported. Total export is divided into 2
categories. i.e. Fresh mushroom 1,17,97,631 kg. value Rs.
51,05,30,325 & prepared & preserved 40,99,258 kg., value Rs.
21,42,24,504 which is a very negilible figure as compared to the
world share.
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* MARKET CHANNEL *
If you can sell your mushrooms or mushroom
products directly to an end user, you will naturally receive a
better price than if you sell to a wholesaler.
Direct marketing of mushrooms at local farmers
markets, to restaurants, or in supermarkets is possible in manylocations. When competing in local markets, excellent service,
top quality & consistent supply rather than the lowest price,
might win the sale, particularly with gourmet chefs. Some chefs
specialize in locally grown foods & may be interested for that
reason. Other are willing to pay for fresh, premium produce. Inany case, establishing a relationship with the buyer & reliably
delivering a quality product are essential for this type of
marketing.
Local grocery stores are another potential buyer tofresh mushrooms.
Although the wholesaler with an established account
creats stiff competition, the small, efficient producer might
still have an advantage in some niche markets.
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Selling fresh mushrooms to a wholesaler will mean alower price than if you market directly. However, for growers
who choose not to involve themselves in direct sales. There are
established wholesale markets for mushrooms.
Small-Scale commercial production of white-button
mushrooms & other Agaricus varieties such as portobellas &
criminis is not recommended for the beginner, except on a small
scale for direct marketing.
A significant capital outlay & a high level of
management skills are required to begin production & at current
prices, recovery of he initial investment might not be possible.
The market is extremely competitive.
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* PRICING DECISION *
Prices play a vital role in the regulation of the
entire spectrum of economic activities, particularly in small-
scale industries. A competitive economic system is essentially
based on price mechanism. Prices serve as guide posts in :
(i) Organising production(ii) Fixing standards [quality]
(iii) The distribution of the product
(iv) Providing for economic maintenance & progress.
(v) Adjusting consumption over short periods.
Influencing factors:
Cost of production
Cost of Raw-materials
Prevailing demand
Competitors price
Pricing Method
Cost + Pricing
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* PROMOTION DECISION *
To increase the sales volume is also an important
marketing goal. When any company is facing some marketing
problem like decreasing sales volume, decreasing popularity for
that purpose to increase the quick sales promotion.
Objectives:
Brand awareness
Brand preference
Brand loyalty
Budget:
Rs. 20,000 per month
Tools:
Sign boards
Hoardings
Catalogs
Printed materials
Other materials of social group
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* PRODUCTION PROCESS *
While button mushroom (Agarious bisporus) are
preferred over other types of mushrooms for canning.
Commercially, mushrooms are canned in brine. The process
involves the following steps.
a) PICKING: Mushrooms are picked at button stage [cap.Diameter 2-2.5 c.m.] by gentle hand twisting. The soil &
portion carrying any microbial flora is then cut
off/removed with the help of a sharp edge stainless steel
knife/blade. The stalk length should preferably be kept
0.5-1 cm. long.b) Sorting & granding: Diseased, damaged/bruised,
shriveled & browned mushrooms are discarded & only the
healthy white & tight buttons are selected & separated
into 2 grades. i.e. Cap. Diameter up to 2.5. cm with compact
head as A & cap. Diameter beyond 2.5 cm as B grade.c) Washing : Graded mushrooms are thoroughly washed 3-4
times in cold running water to remove adhering dirt, soil,
etc. without damaging or rubbing them excessively.
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d) Blanching: To inhibit enzymatic activity blanching is
necessary. It also inactivates micro-organisms & removes
the air from the raw-materials to achieve a satisfactory &uniform pack.
Mushrooms are blanched in boiling water for 2-3
minutes followed by immediate cooling in cold water. However, to
reduce leaching losses, steam blanching is preferred, because
the leaching losses in boiling water had been estimated to be
about 30%.
e) Filling of cans: Mushrooms are commercially packed in 2
can sizes i.e. A-1 tall can & A-2.5 A-1 tall cans are
preferred by retailers while A-2.5 cans are liked by
boteliers, exporters & other establishments.
The blanched mushrooms are filled into cans with
declared drain weight i.e. 440 gms. In A-2.5 can.
f) Filling of cans: After filling the cans with mushrooms
strained hot brine solution of 2% common salt, 1% sugar &
0.05% citric acid is added up to the brim of the can.
Brining adds flavour to the product, reduces processing
time & enhances the shelf life of canned mushrooms.
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g) Exausting: After brining, cans are exhausted to remove
any entrapped air & other accumulated gases from the
product to ensure a longer shelf life.
Cans filled with brine solution are fed to the exhaust
box for a specified period of time depending upon the length of
exhaust tunnel & size of container. The shorter the tunnel, the
longer will be the time required for exhausting. Exhausting can
also be performed by placing the filled cans in boiling water till
temperature of he center of can reaches 85-90o c for 1-2 mts.
h) Seaming/can closing: Immediately after exhausting, cans
are sealed with the help of a double seamer to get
hermetically sealed container. Sealed cans are then placed
in upside down position to sterilize the closed lids.
i) Processing/sterilization: Processing, also designated as
sterilization, is an indispensable unit operation in canning.
This is accomplished by processing the hermetically sealed
cans at a pressure of 15lbs PSI for a specified period of
time depending upon the size of can & altitude of
processing place. However, for areas like shimla,
processing time for A-2.5 size cans is recommended to be
45 minutes.
j) Cooling: Cooling of cans is done immediately after
sterilization in cold running water to room temperature in
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QUALITY CONTROL AND STANDARDS
The specification of fruit products order, 1955 &
prevention of food Adulteration Act. 1954 certification are
mandatory. The canned mushrooms should conform to the
specification laid down in F.P.O. 1955.
The ISO 9000-2000, HACCP, ISO-14000 series &
European norms series standards promise a frame-work which
may guide the entrepreneurs towards fulfillment of a
commitment of quality of products.
ISO series standards are available with the Bureau
of Indian standards from their head quarters office: 9,
Bahadurshah zafar Marg, New Delhi-110002.
PRODUCTION CAPACITY
[PER ANNUM]a) Quantity: 9,00,000 A-2.5 Size cans
b) Value : Rs. 445.50 lakhs
MOTIVE POWER
30 KW
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* POLLUTION CONTROL *
The entrepreneurs are advised to contact concerned
state pollution control Board for detailed guidance in the
matter.
However, the water effluent in this industry isgenerated during cleaning, washing, pre-treatment, blanching
of raw-materials. It is advisable to test the water discharge
as per specification laid down by the Bureau of Indian
Standards. The provision of such treatment has been made in
the profile.
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*ENERGY CONSERVATION*
Although the energy requirement is small yet some
important points for conservation of energy are given below:
1) In electrical installations appropriate electric motors
should be used & properly installed.
2) There should be no leakage of steam from pipe line.
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* FINANCIAL ASPECTS*
INDEX
No. Particular Pg. No.
1.
Fixed Capital details
Land & Building
Machinery & Equipments
Pre-operative Expenses
2.
Working capital details
Personnel
Raw-materials
Utilities
Other Contingent Expenses
3. Sources of finance
4. Interest on Capital
5. Depreciation Details
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*FIXED CAPITAL DETAILS *
1) Land & Building
No. Land & Building Area Rate
(in Rs)
Amt.
(in lakhs)
1. Land 1000 sq.mtr. @250 per
sq. mtr.
2.50
2. Build up area
Factory shed
Raw-material
store
Finished goods
store
Others
700 sq. mtr.
100 sq. mtr.
350 sq. mtr
100 sq. mtr
150 sq. mtr
@ 2500 per
sq. mtr.
17.50
Total 20.00
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2) Machinary & Equipments:
No. Description Qty. Amt
(Rs.in
lakhs)
1. S.S. still Tables size-6 * 3 @ Rs. 13,400 2 0.268
2. Washing machine Rotary Rod washer
equipped with spray arrangement collection
tank etc.
1 0.660
3. Blanching equipments consisting of 3 S.S.
tank each of 380 * 1140 mm complete with
2 trays of size 1015 mm * 350 mm *
880mm & the top folds ot trays 30 mm * 12
mm & S.S. steam coil 25 mm along 3 slides
of tank.
1 0.577
4. S.S. tilting type steam Jacketed kettle
(capacity 50 Gallons)
1 0.536
5. Straight line exhaust box. Exhaust box
tunnel of 3962 mm long with 2 HP electric
motor with reduction gear boxes toaccommodate 4 cans of A-2.5 size at a
time.
1 0.700
6. Canning retorts size-810 * 915 mm & 5 mm
thick with dia. Thermometer, pressure
gauge, safety valve, etc. @ Rs. 49,200
each.
2 0.984
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7. Crates for canning retorts @ Rs. 6600
each
8 0.528
8. Can reformer for reforming flattened can
body
1 0.505
9. Hanger with one change part.
Add1. change part of the above
1
1
0.538
0.140
10. Flage rectifier 1 0.208
11. Semi automatic can seamer
Add1. change part of the above
1
1
0.850
0.14512. Can end embossing machine
Add1. change part for the above
1
1
1.065
0.18013. Water storage tanks (plastic) capacity
15Kl.
1 0.500
14. Concrete tank lined with tiles size
(8 * 8 * 3.5)
1 0.200
15. Steam Boiler (oil fired) capacity 500
kgs./hr.
1 3.000
16. Wide mouthed empty plastic container @
Rs. 150 each-capacity 50 kgs. Each.
100 1.150
17. Cold storage cap-2 tonnes area 1500 cu. Ft. 1 1.500
18. Can tester pneumatically operated with 2
pressure cylinders & water tanks.
1 0.450
19. (a) Miscellaneous equipments such as
buckets, cutting, pealing, knives, weighing
balance Trays, box streping machine etc.
(b) Laboratory equipments such as-weighing
balance, dehydrator etc.
L.S.
L.S.
0.230
1.000
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20. Pollution control equipments discharge of
water-treatment tank.
L.S. 0.350
Total 15.264
Packaging, forwarding C.S.T. & other
charges @ 10%
Erection & electrification charges @
10%
Cost of office equipment including
almirah office furniture, computers
etc.
1.526
1.526
1.000
Total 19.316
3) Pre-Operative expenses
0.750
* Total fixed Investment
(i + ii + iii) = 40.066
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* WORKING CAPITAL DETAILS *
[PER MONTH]
i) Personnel
* Administration *
No. Designation No. Salary Total
(Rs. In
lakhs)
1 Manager 1 8000 0.08
2 Purchase Assistant 1 4000 0.04
3 Salesman 3 4000 0.12
4 Accountant 1 4000 0.04
5 Store keeper/Clerk 1 3000 0.03
6 Computer operator 1 3000 0.03
7 Peon 1 2000 0.02
8 Watchman 2 2000 0.04
Total 0.40
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* TECHNICAL *
No. Designation No. Salary Total
(Rs. In
lakhs)
1 Plant manager 1 8000 0.08
2 Food Technologist 1 7000 0.07
3 Production Supervision 1 4000 0.044 Skilled Workers 2 3000 0.065 Foreman 1 4000 0.04
6 Boiler Attendant 1 3000 0.03
7 Unskilled workers 9 2000 0.188 Sweeper 1 2000 0.02
Total 0.52Grand Total
(Administration +
Technical)
(0.40 + 0.52) 0.92Peark @ 15% 0.138
Total 1.058
(ii) Raw-Material
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No. Particulars Qty. Rate
(in Rs)
Amt
(Rs. In
lakhs)1 Mushroom A grade 55
tonnes
35,000
P.t.
19.25
2 Salt, sugar, citric Acid,
chemicals, preservatives.
L.S. - 0.25
3 A-21/2 Can 75,000 12.00
each
9.00
4. Carton Boxes
Cabels, gums, box.
6250 15.00
each
0.94
5 Scrapping etc. L.S. - 0.85
6 Boxes, Labels etc L.S. - 0.15
Total 30.44
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(iii) *Utilities *
No. Utilities Amt.
(Rs. In
lakhs)
1. Power 30 KW units @ Rs. 3
(30 * 8 *25 * 0.90 * 3)
0.162
2. Fuel (Furnace Oil) 4000 Ltr @ Rs. 8 0.320
3. Water 500 K. Ltr @ Rs. 1/- K.Ltr. 0.005
Total
or Say
0.487
0.50
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(iv) * Other contingent Expenses *
No. Particulars Amt
(Rs. In lakhs)
1. Postage & Stationary 0.1
2. Consumable stores 0.2
3. Repair & Maintenance 0.24. Transport Charges 0.14
5. Advertisement & Publicity 0.10
6. Insurance, Taxes, Telephone Bills etc. 0.08
7. Micellaneous 0.03
Total 0.40
* Total recurring expenses is Rs. 32.390 lakhs
(per month)
( i + ii + iii + iv )
* (v) *Working Capital for 3 months
=Rs. 97.170
* TOTAL CAPITAL INVESTMENT *
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No. Total Capital Investment Amt
(Rs. In lakhs)
(i) Fixed capital 40.066
(ii) Working capital
(For 3 months)
97.170
Total 137.236
* SOURCES OF FINANCE *
No. Particulars Contribution Amt
(Rs. In lakhs)
1. Own Capital 40% 54.892. Loan from bank 60% 82.34
Total 137.23
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* Interest on Capital *
No. Paticulars Rate Amt
(Rs. In lakhs)
1. Owned Capital 9% 4.94
2. Bank loan from ICICI 12% 9.88
Total 14.82
* Depriciation Details *
No. Particulars Amt
(Rs. In lakhs)
(a) Depriciation on machinery & equipment @
10%.
1.526
(b) Depriciation on building @ 5% 0.875
(c) Depriciation on office furniture, fixture
etc. @ 20%
0.200
Total 2.601
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* Financial Analysis *
Index
No. Particular Pg.No.
1. Cost of Production
2. Sales turnover
3. Fixed cost
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1.] * Cost of Production *
No. Cost of Production Amt
(Rs. In lakhs
1. Total recurring expenditure (per year) 388.68
2. Depreciation on machinery & Equipment
@ 10%
1.526
3. Depreciation on Building @ 5% 0.875
4. Depreciation on office furniture, fixture
etc. @ 20%
0.200
5. Interest on total
Investment @ 14%
19.213
Total 410.494
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2.] * Sales turn Over *
No. Item Qty. Rate Amt
(Rs. In
lakhs)
1. Canned Mushrooms
A-2
9,00,000 55 495.00
2. Commission, brokerage &
Marketing expenses
- 10% 49.50
Total 445.50
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3] * Fixed Cost *
No. Fixed Cost Amt
(Rs. In lakhs)
(a) Depriciation on machinery & Equipments 1.526
(b) Depriciation on building 0.875(c) Depriciation on office furniture & fixtures. 0.200
(d) Interest on total Investment 19.213
(e) Insurance 0.360
(f) 40% of salary & wages 4.416
(g) 40% of other contingent expenses 1.584(h) Power charges. 0.360
Total 28.534
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* Profitability analysis *
Profit is the life blood of any business. As
blood is important for like, same profit is important for the
survival of any business.
* Profitability Ratio *
Particular AmtSales
Less : Cost of production [per annum]
495.000
410.494
Earning before interest & Tax
Less : Interest on Capital
84.506
14.82
Profit before tax
Less : Tax (35%)
69.69
24.40
Profit after Tax 45.29
Profitability = Profit x 100
salts
= 45.29 x 100495.00
P = 9.15
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* Break even analysis *
Changing business situation have led to changing
decision situations. B.E. analysis being a simple but effective
tool has been used in cost analysis of single product, multiple
products or composite products.
Break even point is the level of activity at which
there is neither profit nor loss.
= Break even point
= Fixed cost x 100
Fixed cost + Profit
= 28.534 x 100
63.54
= 44.91 % say 45 %
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* Computation of ratios *
The term ratio refers to a numerical or quantities
relationship between 2 terms or variables.
1) Net Profit Ratio :
= Net Profit ( Per year) x 100
Total over (per year)= 35.006 x 100
445.50
= 7.86 %.
2) Rate of Return Ratio:
= Net profit (per year) x 100Total investment
= 35.006 x 100
137.236
= 25.51%.
3) Return on fixed assets := Net profit (per year) x 100
Total fixed assets
= 35.006 x 100
40.006
= 87.50 %
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* Risk Factors *
Risk is another name of business. However, it is also there
is mushroom business. But as we have earlier mentioned that
this business has very bright future because it is a 100% Export
Orienterd unit.
So, in a canned mushroom business there is some risk in a
local market but it is covered by the exporting of canned
mushroom out side India.
Therefore, the level of risk is only for some extent. It is
not affected the unit at a higher level.
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* Benefits for export oriented units
*
Some of the benefits for export oriented units are
mentioned below:
1) The unit may import free of duty capital goods, raw-
materials, components prototypes, office equipments &consumables for office equipments, material handling
equipments etc.
2) An export oriented unit/export processing zone
[EOU/EPZ] unit may export goods manufactured
through an export House/Trading House/Star trading
House.
3) Foreign equity upro 100% is permissible in case of
EOUs & EPZ units.
4) EOU/EPZ units will be eligible for concessional rent for
lease of industrial plot & standard design factory
building sheds.
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5)
EOUs/EPZ units will be exempted from payment ofcorporate income tax for a block of 5 yrs. During the 1st
eight yrs. Of operations.
6) Net foreign exchange earned by an EOU/EPZ unit can
be clabbed, with the net foreign exchange of its
parent/associate company in the domestic tariff area
for the purpose of according export House, Trading
House or star Trading House status later.
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* Future Prospects *
The modern world is fast growing. New innovation of
yesterday is old for today, it is a past & tomorrow is a present.
The following are the future prospects or future plan
of canned mushrooms.
Expansion in existing market & cover the entire world.
Development of various branches all over the world.
To get more profit.
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* LIST OF SUPPLIERS *
Address of machinery & Equipments Suppliers.
1. M/S Somani International Corporation,
1510, maker chamber-v,
Nariman Point,
Mumbai-400021.
2. M/S B.Sen Berry & Company,
65/11, Rohtak Read,
Karol Bagh,
New Delhi,-110005
3. M/S Narang Corporation,
P-25, connaught place,
[Below Madras Hotel],
New Delhi-1110001
4. M/S Raylans Metal works,
Kondivita lane, post box-17426
J.B. nagar, P.O. Andheri(E)
Mumbai 400059
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* Addresses of raw-materials & Packaging material
Suppliers *
CANS
1) M/S. Cowel Can ltd.,
Industrial Area,
Barotiwala, dist. Solan (H.P.)
2) M/S Divecha Glass Industries,
249, Bal Rajeshwar Road,
Office L.B.S Marg, Mulund (w)
3) M/S Poysha Industries Co. Ltd.
Nehru House,
4, Bahadurshah zafar marg,New-Delhi-110002
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CHEMICALS
1) M/S S.B. Mehta & Associates
2-B, Ganga Vihar, 94.
Kazi Sayed, st.
Mumbai-400003
2) M/S Devendra Cottage Industries
Sector -22-4,
Chandigarh.
3) M/S Sesu Trading corporation,
R. No.-2, (4th floor), Sai Chambers,
367-369, Narsi Natha Street,
Mumbai-400009.
* Material Suppliers *
Local Market
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* CONCLUSION *
Future of quality mushroom is very good. Because
now a days people are more conscious about their diet & health.
Mushrooms are full of nutrients, low in calories, high
in proteins, vitamins, minerals & a rich source of folic acid.
It is an alternate choice for weight conscious people
anaemic patients. It has 4.9% protein content which is more
than cow milk, green, vegetable such as beans, etc.
So, mushroom has a very bulky demand not only in a
national market but on a International market too.
Govt. should support these kinds of small scale units
to serve the public with quantitative mushrooms.