INDEX [ ] · PDF fileBALANCE SHEET PROFIT & LOSS A/C CASH FLOW STATEMENT COST SHEET WORKING...

K.S. SCHOOL OF BUSINESS MANAGEMENT 1

INDEX

SL. NO. PARTICULARS PAGE NO.

1 PREFACE 08

2 HISTORY OF MEDICINE 09

3

INTRODUCTION OF MEDICAMENT PHARMACEUTICALS

13

4 PROJECT AT A GLANCE 14

5 PARTNERSHIP DEED 15

6 FEASIBILITY STUDY STEPS 22

7 ENVIRONMENT SCANNING

PEST ANALYSIS 23

8

MARKETING FEASIBILITY

4 P‟S OF MARKETING MARKET RESEARCH

FINDINGS & CONCLUSION

26

9

HUMAN RESOURCE FEASIBILITY

ORGANISATION CHART

JOB PROFILE

58


10

TECHNICAL FEASIBILITY

INPUT

PROCESS PLANT LAYOUT

75

11

FINANCIAL FEASIBILITY

COST OF PROJECT BALANCE SHEET

PROFIT & LOSS A/C CASH FLOW STATEMENT

COST SHEET WORKING CAPITAL STATEMENT

CAPITAL BUDGETING

RATIO ANALYSIS SWOT ANALYSIS

85

12 CONCLUSION 111

13 BIBLIOGRAPHY & WEBOGRAPHY 112


ACKNOWLEDGEMENT

It is possible that the theoretical knowledge is an important thing

which is not possible without the support, guiding, motivat ion &

inspiration provided by the different person. Hence, we are

thankful to many people.

We express our great thanks to our college “K.S. School Of

Business Management " and its Director Dr. Sarla Achuthan for

giving us the chance of guiding ourselves to learn various aspects

practically.

We are highly thankful to our project coordinator Mrs . INGITA

JAIN who has continuously guide us till the last word of this

project report & provide an excellent motivation to us.

Lastly, we would like to express our gratitude to all those people

who have extended their tremendous support & co-operation.

We have made a feasibility report on the establishment of the

pharmaceutical company. The name of our company is

MEDICAMENT PHARMACEUTICALS. We have taken into

consideration technical, marketing & financial feasibility of the

industry in our project.

For the technical feasibility we have taken a visit of FAMYCARE

PHARMACEUTICALS at BAVLA. From there we came to know the

machineries for the production process of COLD & FEVER tablets

and other related information. In marketing feasibility, we have


done the marketing survey of consumers. By analyzing the survey

we found the requirement of COLD & FEVER tablets in the market.

The most important of all was the financial feasibility.

We estimated all the expenses, which are likely to incur for the

establishment of medicine industry. These all things are discussed

further in detail in the project report.

HISTORY OF MEDICINE


Medicine is the science and art of healing. It encompasses a

variety of health care practices evolved to maintain and

restore health by the prevention and treatment of illness.

In the early 19th century the active ingredients of natural drugs

were isolated. Narcotine was isolated from opium in 1803.

Morphine was identified in 1806. Emetine and strychnine followed in 1817. Quinine (used to treat malaria) was identified in 1820. It

was followed by nicotine in 1828, atropine in 1833 and cocaine in 1860.

Meanwhile in 1822 a trapper named Alexis St Martin was shot in

the stomach. The wound healed leaving a hole into his stomach. A doctor named William Beaumont found out how a stomach works

by looking through the hole.

During the 19th century there were several outbreaks of cholera

in Britain. During the 1854 epidemic John Snow (1813-1858)

showed that cholera was transmitted by water. CHLOROFORM was

invented in 1847 for the operations.

Pasteur and his team went on to create a vaccine for anthrax by

keeping anthrax germs heated to 42-43 degrees centigrade for 8 days.

In 1882 they created a vaccine for rabies. A co-worker dried the

spines of rabbits that had contracted the disease in glass jars. Pasteur tried giving a series of injections made from the dried

spines to animals to test the remedy. Then, in 1885, Pasteur

successfully used the vaccine on a boy who had been bitten by a rabid dog.

Meanwhile In 1875 Robert Koch (1843-1910) isolated the germ that causes anthrax. In 1882 he isolated the germ that causes

tuberculosis and in 1883 he isolated the germ that causes cholera in humans.


Meanwhile the organism that causes leprosy was discovered in

1879. The germ that causes typhoid was isolated in 1880. The germ that causes diphtheria was discovered in 1882 by Edwin

Klebs. In 1884 the germs that cause tetanus and pneumonia were both discovered.

Immunization against diphtheria was invented in 1890. A vaccine

for typhoid was invented in 1897. Rubber gloves were first used in surgery in 1890.

MEDICINE IN 20TH CENTURY

Medicine made huge advances in the 20th century. In 1900 different blood types were identified. That made safe blood

transfusions possible.

In 1932 a German named Gerhard Domagk discovered that a red

dye called prontosil killed streptococcus microbes (which causes

blood poisoning). In 1935 his daughter suffered from blood

poisoning after cutting herself. Domagk gave her a dose of

prontosil which cured her.

Antibiotics were discovered too. Penicillin was discovered in 1928

by Alexander Fleming

The first heart transplant was performed in 1967. The first

artificial heart was installed in 1982. The first heart and lung transplant was performed in 1987. In the late 20th century

medicine continued to develop rapidly. In 1980 the World Health Organization announced that smallpox had been eradicated.

However in 1981 a terrible new disease called AIDS was isolated.

In 1983 Magnetic Resonance Imaging or MRI was introduced.

Synthetic skin was developed in 1986 and gene therapy was introduced in 1990.

http://www.localhistories.org/fleming.html


Introduction of

MEDICAMENT PHARMACEUTICALS

Name: - MEDICAMENT PHARMACEUTICALS


Logo: -

Punch Line: - “AMARU LAKHSYA, TAMARI

TANDURASTI”

Meaning of The Name: - The name itself suggest

the Meaning of medicine

Brand Name: -

Brand Tag-line: - “RAAHAT NISHDIN”

Name MEDICAMENT PHARMACEUTICALS

Product Cold & Fever Tablets


PROJECT AT A GLANCE

Meaning of Feasibility Report:-

Constitution Private Ltd.

Industry Address

A/8, Phase-II,

Near Arihant Pharmaceuticals,

Sarkhej – Bavla highway,

Changodar,

Ahmedabad – 382213.

Total Cost of Project 23148000

Means of Finance:

Equity Shares (56% of

Total Cost of

Project)(face

value=Rs.10each)

13148000

Bank Loan (44% of Total

Cost of Project) 10000000


A feasibility report means a report which projects the

practical viability of a venture with respect to different

dimensions.

Marketing Feasibility:-

From marketing point of view, it is important that the

product is accepted and adored by customers. In order to do so

marketing department will have to check whether their strategies

are viable or not in terms of effectiveness.

Technical Feasibility:-

This phase of feasibility study includes requirement of plant,

machineries, miscellaneous fixed assets, furniture, etc. A large

capital is required for production of COLD & FEVER tablets.

Financial Feasibility:-

An industry has to see whether the amount invested is viable

in terms of return and anticipated revenues. Careful inspection of

all the data related to balance-sheet, cash flow aspect,

depreciation, description about loan, etc. fall under financial

feasibility.

Social Feasibility:-


It should not only viable from the above mentioned angles,

but it must be such that it does not harm the community.

Mankind is a community that we all stand in a relation to each

other, that there is a public end and interest of society which

each particular is obliged to promote, is the sum of morals.

PEST ANALYSIS


PEST Analysis stands for “Political, Economic, Social and

Technological Analysis " and describes a framework of macro

environmental factors used in the environmental scanning

component of useful strategic tool for understanding market

growth or decline, business position, potential and direction fo r

operations.

The acronym PEST is used to describe a framework for the

analysis of these macro environmental factors.

1. Political Environment:

Political environment covers those factors which either

restrain or facilitate the business through government actions.

Our industry will be definitely under the effect of TAX

POLICY changes which may lead to variations in the

administration at the centre which may also lead to the changes

in the sales tax rate which may harshly affect our industry.

Acceptance/rejection of any new technology related to the

machineries also depends upon the ideology of the political party

ruling at that time.

2. Economical Environment:


The economic environment also affects our business.

Normally, the growth rate of pharmaceutical industry is 9% to

19% every year. The growth rate mainly steams from emerging

economies which are striving to meet their rapidly growing

demand for housing & infrastructure but due to recession,

demand for the cold & fever tablets may be affected.

3. Social Environment

Our industry believes that harmony between the society

& environment is the prime essence of healthy life and living the

sustenance of our ecological balance is very much important

because our industry making pollution in form of CO 2. So our

industry has evolved an environmental policy. the aim of which is

to do all this is reasonably practicable to prevent or minimize, the

risk of an adverse environmental impact in terms of dust, noise

pollution, etc. on the society.

4. Technological Environment

Technological innovations are introduced for higher

productivity, lower cost and more revenue. The industry that

moves with the latest technology can excel their growth, that‟s

Why our industry has decided to install latest technological plant

& machineries in our production process.

Introduction


In simple words, “Marketing is meeting needs

profitability.” In formal Way, marketing is a primary management

function which organizes and directs the aggregate of business

activities involved in converting consumer purchasing power into

effective demand for a specific services and in moving the product

and services to the final consumer so as to achieve the company-

set other objectives.

Our marketing feasibility reports deal with the product policy

that is what type of product or products should be manufactured.

The determination of price and the terms of payment are also

converted in the price.

4 P’s


OF

MARKETING

This is an important concept in the modern marketing. It

consisted of product, price, place & promotion. So, it is known as

4P‟s of marketing.


1. PRODUCT :

A product is anything that can be offered to a market to satisfy

want or need , including physical goods, services, experiences,

events, persons ,places, properties, organizations, information

and ideas.

Core benefit

Basic product

Expected product

Augmented

Potential product


Core benefit

The fundamental level is the core benefit the service or

benefit the customer is really buying. A customer is buying medicine to get relief form cold and fever. Marketers must see

themselves as benefit provider .

Basic product

At the second level, the marketer must turn the core benefit into a basic product.

The basic product of our industry is cold and fever tablets.

Expected product

An expected product is a set of attributes and conditions,

which the buyers normally expect when they purchase the product

Here, consumer expects to get rid of their health related

problems and there has to be no side effects from the product

they use.

The expected product that is offered by our indus try is

Good quality Quick healing

Good Packing


Reasonable Price

Easy availability

Augmented product

At this level, manufacturer voluntarily improves existing

product by adding new feature to enhance the value of the product that exceeds consumers‟ expectation.

The augmented product that our industry will provide:

Flavours Dust less packaging

Competition Brand positioning

Potential Product

Potential product, which encompasses all the possible augmentations and transformations the product or offering might

undergo in the future.

New way to satisfy customers and distinguish their

offering. Medicine has potential to provide shelter against

common cold , fever and pain


PRODUCT MIX


FREECOLD TABLETS

WHITE

500 mg


PRODUCT WIDTH

Product width of a product refers to how many different lines the company carries.

MEDICAMENT PHARMACEUTICALS carries one product width.

1. COLD & FEVER TABLETS.

PRODUCT LENGTH

It refers to the total number of the items in the mix.

The product length of MEDICAMENT PHARMACEUTICALS is one.

PRODUCT DEPTH

Product depth of product mix refers to how many variants

the company has in each line.

Product depth of MEDICAMENT PHARMACEUTICALS is one.

500 mg

PRODUCT CONSISTENCY

The consistency of the product mix refers to how closely related the various product lines are in end use, production

requirement distribution channels, or some other way MEDICAMENT PHARMACEUTICALS product lines are consistent

in so far as they are consumer goods that go through the same distribution channel. The lines are more consistent in so far as

they perform single functions for the buyers.


PRICE

Pricing plays an important role in today‟s world. A firm set

a price for the first time when it introduces a new product.

Price is an only factor that generates the revenues.

Our industry decided the pricing policy after taking into consideration of the competitor‟s prices to enhance sales at

introduction stage.

Brand name Price (per strip in Rs.)

Vicks Action 500 10

D‟Cold 10

Crocin 10

We plan to provide products on wholesale basis and

through internet and teleshopping .Half of the amount of

order would be collected on order basis and the rest along

with the delivery and for the orders through telephone and

internet the cash would be collected on delivery basis.


PRICE OF COLD & FEVER TABLETS AT MEDICAMENT PHARMACEUTICALS:

The price of our tablet is Rs.7.00 PER STRIPS.

DISTRIBUITION CHANNELS PRICE(per strips in Rs)

WHOLE SELLER 7

RETAILER 8

JOB WORKS 6

PLACE

Place is concerned with linking the buyers & sellers. It includes the decision about the channel of distribution, means

of transportation, warehousing, inventory control, etc. the seller needs to select an appropriate place for manufacturing a

product in such a way that it fulfills the criteria of availabilities to the prospective customers.

Marketer should make a product available at as many places as possible so that it can easily attract the customers

and increase its market share by the way of selling it to them.


Distribution Channel

Distribution channel refers to the distribution of goods

from manufacturer to customer, Our distribution channel is as follow.


DISTRIBUTORS RETAILERS CUSTOMERS


Promotion

Promotion is a tool through which marketers communicate their product to the consumer.

Advertising is any paid form of non personal presentation and promotion of goods or services by identified sponsors.

Following are the 5 promotion tools:

Promotion

Tools

Advertising

Sales promotion

Personal selling

Direct marketing

Public relation


Promotion can be done through various media such as :

Television ads :- E -TV ,DD GUJARATI,ZEE GUJARATI

Newspaper ads:- DIVYA BHASKAR,SANDESH PAMPHLET , YELLOW PAGES AND CATALOUGES

5 M’s of ADVERTISEMENT

MONEY

Stage in PLC

Mkt sh & consumer based competition

MEDIA

Reach, frequency, impact

Major media types

Specific media vehicles

MESSAGE

Msg generation

Msg evaluation

Msg execution MEASUR EMENT

Comm. Impact

Sales impact

MISSION

Sales Goals

Advertising objectives


MISSION

Our main advertising aims are

To create awareness about our medicine to the consumers &

to create new brand image in the market.

To persuade/convince the retailers and consumers to

purchase.

MONEY

There are main factors that influence the advertising

budget.

Condition in product life cycle :-

In the primary condition, our advertising budget is high because we want to introduce our product to the customers

to create awareness.

Market share and consumer base :-

As we have to build market share, we have to spend large

amount on advertisement.

Competition :-

When tough competition exists, we will make more spending

on advertisement. Our industry is falling in monopolistic market.

Advertising frequency:-

Television ads: once a day on ETV GUJARATI for 30 seconds

Newspaper ads: twice a week in DIVYA BHASKAR AND SANDESH Pamphlets, yellow pages and catalogue


Product substitutability:-

Our brands in less well differentiated or commodity like

product classes require heavy advertising to estab lish a differential image.

Newspapers @ 170 Rs. Per cm. B/W print at the middle

part of the page.

Television @ 5000 Rs. Total budget Rs.150000 for one

month.

Pamphlets, yellow pages ,catalogue Rs.3000 Total budget Rs.90000 for one month

ADVERTISEMENT

IN TELEVISION

YEAR TIME(IN SEC.)

RS. PER WEEK

RS. PER MONTH

TOTAL

1 30 37500 150000 1800000

2 30 6250 25000 300000

3 30 6250 25000 300000

4 30 4167 16667 200000

5 0 0 0 0

NEWSPAPER

Y

E

A

R

SANDESH(R

s)

(every

Monday)

DIVYA

BHASKAR(R

s)

(every

Thusday)

PER MONTH

SANDESH(R

s)

PER MONTH

OF DIVYA

BHASKAR(R

s)

TOTAL

PER

MONT

H

ANNUAL

AMOUN

T

1 12900 13350 51600 53400 10500

0

126000

0

2 833.25 1250 3333 5000 8333 100000

3 1666.75 2500 6667 10000 16667 200000

4 892.5 1190.75 3570 4763 8333 100000

5 3125 1041.75 12500 4167 16667 200000


PAMPHLETS, CATALOGUES, YELLOW PAGES

YEAR RS. PER DAY RS. PER MONTH TOTAL

1 1500 45000 540000

2 277 8333 100000

3 277 8333 100000

4 0 0 0

5 0 0 0

TOTAL CALCULATION

YEAR TOTAL AMT

1 3600000

2 500000

3 600000

4 300000

5 200000

MEDIA

After choosing the message, the advertiser‟s next task is to choose media to carry it.

Here are some media vehicles:

o Television ads o Newspaper ads

o Pamphlets , yellow pages and catalogues


MESSAGE

Our message is “BECAUSE WE CARE FOR

YOU”

The punch line of our company is “AMARU LAKSHYA- TAMARI TANDURASTI” which reflects our care for environment and for human health.

MEASUREMENT

The demand for our product has been increased by 10%

to 20% over the first 5 years and advertising is one of the

reasons for that.


MARKET RESEARCH

“Market research is systematic decision, collection,

analysis and reporting of data and findings relevant to a specific marketing situation facing the company."

OBJECTIVES OF RESEARCH:-

To find out the satisfaction level of consumers.

To find out the factors considered by consumers at the time of purchasing.

To come up with relevant suggestions.

MARKETING RESEARCH PROCESS:-

(1) Define the problem and research objective.

(2) Develop the research plans.

(3) Collection of information.

(4) Report the findings.

(5) Analyze the information.


Define the problem and research objective

The main objective in our research is finding the scope and

feasibility of cold & fever tablets.

Develop the research plans

This involves the decision on the data sources, research

approaches, research instrument, sampling plan, and contact methods.

1. Data Sources :

Data sources can be divided into two parts.

Primary Data

Our research for primary source consists of “survey of

the consumers." We have visited FAMYCARE PHARMACEUTICALS to get the information.

Secondary Data

Secondary Data are obtained by us from

o Marketing management by 'Philip Kotler.'

o We have used different websites like:

'www.Google.com ‟

„www.pharmapedia.com ‟

„www.zamanzar.com ‟

„www.99acres.com ‟

http://www.google.com/

http://www.pharmapedia.com/

http://www.zamanzar.com/

http://www.99acres.com/


2. Research Approaches :

There is FIVE research approaches are as follows:

We have used the “Survey approach” through the questionnaire of the „Retailers & Consumers.‟

3. Research Instrument :

Collection of information

In collecting the information, we faced some problems

like:

The response of some people was biased and

unreliable.

Analysis of Information

For analysis, we have distributed the various questions in tabulated form and we have presented it in the different

charts.

Particular Consumer analysis

Sample unit Consumers

Sample size 400

Sampling procedure Convenient


QUESTIONNAIRE

K.S SCHOOL OF BUSSINESS MANAGEMENT

Marketing Survey Questionnaire for

identifying the preference and satisfaction

levels of the consumers of tablets for COLD &

FEVER.

(From T.Y M.B.A Students)

(For The PROJECT Purpose Only)

Name: ____________________________

Area: ______________________________

City: ______________________________

Age Group: 18-30 years 30-40 years 40 years and above


(1) In which season do you get affected mostly by cold and

fever?

Winter Summer Monsoon

(2) Do you consult a doctor ?

Yes No

(3) Which tablet do you prefer generally when you get cold

and fever?

D‟Cold Crocin

Vicks Action 500 Any Other:

_______________ (please specify)

(4) How do you come to know about the tablet you prefer?

Medical Stores Television

Friends & Relatives Newspapers

(5) Do you buy such tablet by yourself or by suggestion of

chemist?

______________________________________________________

_________________

(6) Are you satisfied with your tablet?

Yes No

If no, then give reason:

_____________________________________________________


(7) Do you stick to your brand?

Yes No

Give reason:

______________________________________________________

________

(8) Would you like to switch over to another tablet?

Yes No

If no, then give reason:

______________________________________________________

(9) Do you face any side effects after taking such tablet?

Yes No

(10) Will you prefer such tablet which can be taken only

once in a day?

Yes No

(11) According to you, how should be the ideal tablet?

______________________________________________________

__________________


(12) Would you like to give the same tablet in form of syrup

to your child?

Yes No

THANK YOU

_____________________________________

_______________


GRAPHICAL REPRESENTATION

AGE GROUP

From the above chart we can say that out of 400 consumers

54% consumers fall into the age group of 18 to 30 years which is

followed by 40 and above (27%) age group.

Total, 18 to 30, 214, 54% Total, 30 to

40, 77, 19%

Total, 40 and above, 109,

27%

Total

18 to 30

30 to 40

40 and above

Age Total

18 to 30 214

30 to 40 77

40 and

above

109

Total 400


(1) In which season do you get affected mostly by

cold and fever?

Season No.

Winter 266

Summer 48

Monsoon 86

Total 400

From the above chart, we can say that people get mostly

affected by cold & fever in winter (66%) which is followed by

monsoon (22%). Generally, people consult a doctor because of

this kind of seasonal effect.

No., Winter,

266, 66% No.,

Summer, 48, 12%

No., Monsoon,

86, 22%

Seasonal Effect

Winter

Summer

Monsoon


(2) Do you consult a doctor?

Yes No Total

112 288 400

From the above chart, we can say that out of 400 consumers

72% consumers consult a doctor when they get affected by the

COLD & FEVER and rest(28%) are not.

Series1, Yes, 83, 28%

Series1, No, 217, 72%

Consultation of Doctor

Yes

No


(3) Which tablet do you prefer generally when you

get cold and fever?

D'Cold Vicks

Action 500

Crocin Others

183 41 39 137

From the above chart, it clearly shows that there is a huge

market covered by the D’Cold tablet (46%) which is followed by

others (34%) and Vicks action 500(10%).

Series1, D'cold, 183,

46%

Series1, Vicks Action 500,

41, 10%

Series1, Crocin, 39,

10%

Series1, Others, 137,

34%

Preference Of Tablet

D'cold

Vicks Action 500

Crocin

Others


(4) How do you come to know about the tablet you

prefer?

Medical

Stores Television

Friends &

Relatives Newspapers

177 41 159 23

From the above chart we can show that, people come to

know about particular tablet through medical stores (44%) which

are followed by friend & relatives (40%).

Series1, Medical Stores, 177,

44%

Series1, Television, 41,

10%

Series1, Friends & Relatives,

159, 40%

Series1, Newspapers,

23, 6%

Means of knowing tablets

Medical Stores

Television

Friends & Relatives

Newspapers


(5) Do you buy such tablet by yourself or by

suggestion of chemist?

As from above chart we can say, people mostly prefer to

take tablets by themselves only (58%). There are some cases in

which they ask to CHEMIST (42%) for there preference.

By myself By suggestion

233 167

Series1, By myself, 233,

58%

Series1, By suggestion, 167, 42%

Buying Preference

By myself

By suggestion


(6) Are you satisfied with your tablet?

Yes No

327 73

By conducting the survey of 400 people, we came to know

that 82% of the people are generally satisfied with their COLD &

FEVER tablets which show their satisfaction level.

Series1, Yes , 327, 82%

Series1, No, 73, 18%

Satisfaction Level

Yes

No


(7) Do you stick to your brand?

Yes No

171 229

As the COLD & FEVER tablets fall into the category of OTC

products, no stickiness is shown in the behavior of the consumer.

They generally buy these kind of tablets based on their choices.

Availability of these tablets also play the MAJOR ROLE for their

decision.

But in our survey, 57% of the people generally do not stick

with their tablet brand.

Series1, Yes , 171, 43%

Series1, No, 229, 57%

Do you stick to your brand?

Yes

No


(8) Would you like to switch over to another tablet?

Yes No

252 148

Generally it happens in the COLD & FEVER tablets, that if

there is any new brand or tablet come up with some more

advantages, then people always prefer it .

In our survey, we also face that kind of the behavior from

the people that if there will be any new COLD & FEVER tablet

Series1, Yes , 253, 63%

Series1, No, 147, 37%

Switching Over to another brand

Yes

No


come up with some more benefits they will surely like to switch

over to it.

(9) Do you face any side effects after taking such

tablet?

Yes No

44 356

COLD & FEVER is the seasonal disease. So if people are

consuming the various tablets for it they are not facing any kind

of the SIDE EFFECTS for the same.

Our survey itself indicates that out of 400 people, 89% of

the people do not face any kind of the SIDE EFFECTS after the

consumption of the tablets.


Series1, No, 356, 89%

Side-effects

Yes

No


(10) Will you prefer such tablet which can be taken

only once in a day?

Yes No

374 26

Generally, it is always turned into the answer of “YES” when

there is better solution given to the consumers. Of course it‟s the

favourable decision by the consumers to go for such tablets which

can be taken only once in a day.

In our survey of 400 people, 93% people would like to buy

the tablet which can be taken only once in a day.


Series1, No, 26, 7% Will you prefer such tablet which can be taken only once in a day?

Yes

No


(11) Would you like to give the same tablet in form

of syrup to your child?

Yes No

287 113

Generally, a small kid is given the syrups for COLD & FEVER

because it is very easy to digest and also shows its effect rapidly.

In our survey, 72% of the people prefer syrup form of the

tablet for their child. According to them, it is more beneficial for

a child.


Series1, No, 113, 28%

Transformation Prefernce

Yes

No


ORGANISATION CHART

Managing Director

H R Department

Manager

Executive

Quality Control Department

Manager

Finance Department

Manager

Accountants Clerks

Production Department

Manager

Executive

Technichians

Workers

Supervisors

Workers

Marketing and Sales

Department

Manager

Area Managers

Sales Executive Business

Development Executive


Employee Welfare and Retention :-

The Employee welfare and retention is crucial affair for any

organization. Employees are the arms and legs of any

organization. It is very important to pay close attention towards

the problems of the employees working in the organization.

Employee Welfare Schemes:-

1. Casual leave :- 10 days per year

2. Sick leave :- 10 days per year

3. Bonus :- 1 month‟s salary per annum

4. The workers will be provided special attire according to production premises.


JOB

DESCRIPTION & SPECIFICATION

MANAGING DIRECTOR

JOB DESCRIPTION:

Reports to: Partners

Function:

Handling emergency affairs

Approve organization changes

Approving policies

Calling periodical meeting of various managers

and with board

JOB SPECIFICATION:

Qualification : MBA in specified field

Experience : 5 years experience

Responsible for : Implementing policies and converting

plans into action.


FINANCE MANAGER

JOB DESCRIPTION:

REPORTS TO : Managing Director

FUNCTIONS :

1. To determine optimum capital structure and works

towards its attainment. 2. To negotiate marketing, production and finance budgets

and to prepare annual budget to achieve financial goals. 3. Fund management.

4. Develop creative ideas and credit and payment policy. 5. Budgeting and timely finalization of accounts.

RESPONSIBILITIES :

1. To maintain enough liquidity level.

2. Responsible for investment return, financial losses, financial plan and its execution.

3. Responsible for timely payment to creditors.

JOB SPECIFICATION:

JOB TITLE : Finance manager

QUALIFICATION :MBA in finance/C.A./ICWA

AGE :25 years and above


PHYSICAL HEALTH : sound health and fitness

MENTAL ABILITY :Good analytical skills,

Dynamic nature

EXPERIENCE :Minimum 2 years

SPECIAL SKILLS :Good communication power over numbers.

Should be dynamic and

having administrative quality.


ACCOUNTANT

JOB DESCRIPTION:

REPORTS TO : Finance manager

FUNCTIONS:

1. To keep the records of purchase, sales, bad debt and

credit period. 2. To prepare a daily vouchers, cashbooks and statement of

financial position. 3. To keep the track of debtors and send letters of

reminder. 4. To maintain all the records and to handle all legal

formalities like income tax and sales tax

5. To assist and supervise the clerical staff.

RESPONSIBILITIES:

1. He is responsible to submit all the records and financial reports to finance manager.

2. To maintain records of administrative and banking transactions.

3. To get the books of account audited after regular interval.


JOB SPECIFICATION:

JOB TITLE : Accountant

QUALIFICATION : M.COM. with computer knowledge

AGE : 25 years and above

MENTAL ABILITY : Smart mind

EXPERIENCE : Minimum 1 year

CLERK

JOB DESCRIPTION

Reports to : Accountant

FUNCTIONS:

1. To maintain all the records and files of the day to day

activity.

2. To follow the instruction given by finance manager and

accountant.

3. To prepare MIS (management informational system)

report.

4. To carry out the official work.


RESPONSIBILITIES:

1. Responsible to submit all the records and financial

reports to the financial manager.

2. Responsible to submit necessary account related files to

accountant. Responsible for any mistakes committed in filing the data of day to day activities.

JOB SPECIFICATION

JOB TITLE : Clerk

QUALIFICATION : B.COM. with basic computer

knowledge -

PHYSICAL HEALTH : Sound Health

MENTAL ABILITY : Sound mind

SPECIAL SKILLS : Fluent English skills


PRODUCTION MANAGER

JOB DESCRIPTION:

Reports to : Managing Director

Functions:

1. To apply innovative method to achieve the production

target in stipulated time period. 2. To co-ordinate with marketing and finance department

for the smooth functions of organization. 3. To be aware of a latest innovation taking place in the

similar industry regarding machines and productions.

4. To purchase raw materials considering good quality at reasonable rate and keep them properly stored.

5. To control and guide the supervisor.

RESPONSIBILITY:

1. Responsible for efficient production schedules and the arrangement of labors.

2. Responsible for not achieving target within the stipulated

time. 3. Responsible for implementing the effective production

procedure. 4. Responsible for effective ordering quantity.


JOB SPECIFICATION:

JOB TITLE : Production Manager

QUALIFICATION : M.Pharm.

EXPERIENCE : Minimum 1 year.

SPECIAL SKILLS : Effective plant maintenance, good communication and ability to take work from

subordinate.

PRODUCTION EXECUTIVE

JOB DESCRIPTION

Reports to : Production Manager

Functions:

1. He has to look after all kinds of inventories namely raw material, work-in-progress and finished products.

2. To keep the register and stock sheet.


3. To check the required quantity and to keep updated

about suppliers.

RESPONSIBILITIES:

1. Keeping day to day inventories records.

2. Responsible for non performance of work. 3. Responsible for inadequate stock and raw materials.

JOB SPECIFICATION

JOB TITLE : Production Executive

QUALIFICATION : Graduate with complete knowledge of store keeping

AGE : 22 years and above

EXPERIENCE : Experience is not must. Fresher may Also be accepted.


TECHNICIAN

JOB DESCRIPTION

Reports to : Production Executive

Functions:

1. To maintain the machineries in the Production

Department.

2. To solve the various problems regarding the Machines. 3. To give the knowledge of machines to the workers.

Responsibilities:

1. Responsible for checking the daily performance of

machineries. 2. Responsible for managing sudden breakdown of

machines.

JOB SPECIFICATION

QUALIFICATION : B.E. in Mechanical

EXPERIENCE : Minimum 2 years

SKILLS : Ability to work with patience.


SUPERVISOR

JOB DESCRIPTION:

Reports to : Production Executive

FUNCTIONS:

1. To perform the work given by the upper management. 2. To instruct workers for effective work.

3. To supervise the production process. 4. To solve the problems of workers.

Responsibilities:

1. Responsible for checking the daily performance of workers.

2. Responsible for lower quality of finished good.

JOB SPECIFICATION:

QUALIFICATION : Graduate


SKILLS : Ability to work with peers, Stable mentality


HUMAN RESOURCE MANAGER

JOB DESCRIPTION:


FUNCTIONS:

1. To recruit eligible and compatible employees for the

organization. 2. To direct the right path to employees.

Responsibilities:

1. Responsible for the coordination among the different department

2. Responsible for efficient recruitment.

JOB SPECIFICATION:

QUALIFICATION : M.B.A. (H.R.)


SKILLS : Good communication skills, good and creative skil ls


HUMAN RESOURCE EXECUTIVE

JOB DESCRIPTION:

Reports to : HUMAN RESOURCE MANAGER

FUNCTIONS:

1. To motivate the workforce.

2. To control over the workforce.

RESPONSIBILITY:

1. Responsible for the perfect direction to the employees.

2. Responsible for the implementation of new HUMAN RESOURCE policy.

JOB SPECIFICATION:

QUALIFICATION : B.B.A.


SKILLS : Good convincing power.


QUALITY CONTROL MANAGER

JOB DESCRIPTION:


Functions:

1. To control quality of the product.

Responsibilities:

1. Responsible for quality of the cold & fever tablets

JOB SPECIFICATION:

QUALIFICATION: M.Pharm.


SKILLS : Ability to work with peers.


QUALITY CONTROL EXPERT

JOB DESCRIPTION:

Reports to : Quality Control Manager

FUNCTIONS:

1. To undertake quality control tests

2. To give the conclusions about the quality of manufacturing.

3. To assist the QUALITY CONTROL MANAGER in taking up the decisions regarding to the QUALITY CONTROL.

RESPONSIBILITY:

1. Responsible for tracing out the deteriorated production

of COLD & FEVER tablets. 2. Responsible for maintaining the quality of the whole

production.

JOB SPECIFICATION:

QUALIFICATION : B.Pharm.

EXPERIENCE : Minimum 2 years

SKILLS : Good judgmental skills


TERRITORY MAP OF GUJARAT

SOUTH GUJARAT

SAURASTRA

CENTRAL GUJARAT

NORTH GUJARAT

KACHCHH


ZONE AREA COVERED IN THE

ZONE

KACHCHH Kachchh

SAURASTRA

Jamnagar , Rajkot ,

Surendranagar , Bhavnagar

Amreli , Junagadh , Porbandar

CENTRAL GUJARAT

Ahmedabad , Gandhinagar ,

Kheda , Anand

NORTH GUJARAT

Banaskantha , Patan , Mehesana

, Sabarkantha

Panchmahal , Dahod

SOUTH GUJARAT

Vadodara , Bharuch , Narmada ,

Surat ,

Navsari , Dang , Valsad


Sales Manager

Area Manager

North Zone

Executive

South Zone

Executive

Central Zone

Executive

Area Manager

Kachchh

Executive

Saurashtra

Executive

Business Development

Executive


Marketing and Sales manager:

There is a separate department altogether for running the

sales and marketing processes of a company. And to manage

these processes of sales and marketing, there is a professional

appointed known as a sales manager. A sales manager is a person

who is an expert in handling and managing the sales development

processes of a company.

JOB DESCRIPTION:

Reporting to : Managing director

Functions:

To plan the marketing strategy based on budget. To take decision regarding promotional tools and advertising

budget. To cooperate with production and financial manager.

To build brand name of company.

To approach the dealers and consumers to give self -space to our product.

To keep past records of sales volume and customers. To maintain relations with dealers, constructor, and

consumer.

http://www.buzzle.com/articles/marketing/


Responsibilities:

Handling important sales deals

Team management

Responsible for product positioning.

Responsible for complain of any customer or dealer.

JOB SPECIFICATION:

Qualification : MBA in Marketing

Experience :5 to 7 years

Skills :Good leadership qualities , Good Communication skills


Area manager

JOB DESCRIPTION:

Reporting to : Sales manager

Functions:-

Define target area for sales

Guide the executives to achieve the sales goal

Solving the problems of the executives

Give innovative ideas to executives for sale of product

Responsibility

Define target area for sales

Knowledge about the area of selling the product

JOB SPECIFICATION:

Qualification : specialization in economics

Experience : 3 to 4 year

Skills : good coordinating qualities


Business Development Executive

JOB SPECIFICATION:

Qualification : MBA in Marketing & M.A. in Economics

Experience : 2 to 3 years

Special Skills : Good communication & having

administrative skills

JOB DESCRIPTION:

Reports to : Sales Manager

Functions:

Brings orders from other states

Maintaining relations with out-siders

Brings information about competitors or market to the

organization.

Responsibilities: Responsible for delivery of goods to out-siders

Provide information about our product to out-siders

Responsible for managing the orders given by out-

siders


Sales Executives

JOB DESCRIPTION:

Reports to : Area manager

FUNCTIONS:

1. To assist the Marketing Manager.

2. To work out the marketing policies. 3. To give the SALES TARGETS to the sales persons.

RESPONSIBILITY:

1. Responsible for the achievement of the sales targets.

JOB SPECIFICATION:

QUALIFICATION : B.B.A.

EXPERIENCE : Minimum 6 months

SKILLS : Good convincing power.


INPUT

(1) LAND:

Area: 95x70 square feet

Cost of land: Rs.9897200 inclusive of all legal and

documentation charges

Location Analysis:

To make the industry proceed faster and to make the business

economically and socially viable, the selection of its location

decision plays a vital role in the better prospect for the growth and

development of the business.

Location: A/8, phase-2,

Near Arihant Pharmaceuticals,

Sarkhej – Bavla Highway,

Changodar,

Ahmedabad -382213.


The following criteria have been considered while selecting the

location.

1. Transportation Facility

We have selected our location close to Sarkhej

Bavla highway. So the availability of raw materials is easy

and less cost consuming.

For the manufacturing of medicines, the selected

location is ideal. And the best facilities are easily available

for the manufacturing of the medicines.

2. Power and Fuel

For the production, power is obtain from “Guja rat

electricity Board”. The Fuel is not in much use for our

production.

3. Water

As water is basic requirement in production of

Cold & Fever tablets, water is supplied by AUDA.


(2) BUILDING:

In our organization there is no need for assigning major

divisions as it is only a production unit. Yet we will have central

control unit, security office, and main administrative office and

store house to store finished product.

Construction area:

Ground Floor: 6650 sq feet- 800 sq feet = 5850 sq feet

First Floor: 17x80 = 1360 square feet

30x15 = 450 square feet

Total construction in MEDICAMENT PHARMACEUTICALS: 7660

square feet. The cost of constructing building is Rs.61,28,000 at

the rate of Rs. 800 per square feet.


PLANT LAYOUT


Machineries

V-Blender

The BLENDER is an efficient and versatile blending machine for

mixing and lubrication process of dry granules and powder

homogeneously. Blenders are available in various geometries,

affecting the material movement, mixing efficiency and ease of

cleaning in various batches.

The selection of mixer is based on the nature of raw materials;

we have our ingredients in powder form. So we have selected this

BLENDER machine.

The BLENDER is used to mix the different ingredients and the raw

materials so we can get the proper mixture of required

ingredients in powder form.

Cost of V-Blender Machine: Rs. 250000


SINGLE MINI ROTARY TABLET PRESS

Tablet presses, also called tableting machines, range from small,

inexpensive bench-top models that make one tablet at a time

(single-station presses), with only around a half -ton pressure, to

large, computerized, industrial models (multi -station rotary

presses) that can make hundreds of thousands to millions of

tablets an hour with much greater pressure. The tablet press is an

essential piece of machinery for any pharmaceutical and

nutraceutical manufacturer.

The Tablet Press, Mini in size and Single Rotary is an ideal choice

for small scale productions of tablets. It is also used to avoid

wastage when high value ingredients are used for tablet formulations, also known as lab tablet press.


The mini tablet press is designed with GMP considerations. It is sturdy, fitted with single s ided turret of special grade Iron

Casting. After mixing up different ingredients, the process of compression starts. In this process the powder material of

different mixed ingredients are transformed into the tablet shape.

This tablet will be needed to be coated so this tablet shaped

material is brought in the next step for “COATING”.

The output capacity of SINGLE ROTARY MINI PRESS is 18000 per hour.

Price of SINGLE ROTARY MINI PRESS: Rs. 480000


Coating Machine

A coating is often applied to make the tablet smoother and easier to swallow, to control the release rate of the active

ingredient, to make it more resistant to the environment

(extending its shelf life), or to enhance the tablet's appearance.

After getting transformed into the tablet shape the tablet is

coated into the coating machine. The purpose behind coating the

tablet is to hold the effects of the ingredients long lasting.

Price of coating machine:- Rs. 125000


Packing Machine

It has been designed and developed to pack capsules, tablets or

similar products into blisters. This reliable machine offers a high

versatility and flexibility of production. After getting coated in the


coating machine, the tablets are packed in this step. The packing

procedure includes packaging and sealing and coding embossing

in which the details regarding to the tablets is printed on the back

of the packets of tablets.


PROCESS OF PRODUCTION


Direct Compression

Tablets are the most common solid oral dosage form for many

reasons including ease of manufacturing, convenience for the patient, accurate dose administration, and better stability than

liquids and parenteral dosage forms. Direct compression is the simplest and most economical method for the manufacturing of

tablets because it requires less processing steps than other techniques such as wet granulation and roller compaction. Since

tablets can be considered a drug delivery system careful attention must be paid to their design, development and manufacturing in

order to achieve the correct medical benefit.

MIXING OF INGREDEINTS

1. In the first step of the process the ingredients

Paraceatamol, Phenylpropanolamine, Caffeine

Anhydrous, Chlorpheniramine Maleate are mixed up

in the V-Blender. These ingredients are taken up as

shown in the composition of 500mg tablet.

2. So they are mixed up thoroughly and this powder

mixture is transferred to the next process for the

compression.


Compression of Mixture

1. After getting mixed up in this step the powder form

is compressed in the machine called SINGLE ROTARY

MINI PRESS.

2. In this step the mixture is compressed by the upper

and the lower punches.

3. So the mixture takes the basic shape of tablet. This

basic shape of tablet is not yet the finished product.

Then it is transferred to the next step.

Coating the Tablet

1. After getting transformed into the tablet shape it is

needed to be coated.

2. So in this step the tablets are coated. Coating of the

tablet holds its impact for long time. It is also called

as SUSTAINED RELEASED DRUG which releases its

impact gradually after ingesting it.

Packaging

1. After getting coated from the coating machine the

tablets are transferred to the packing machine.

2. In this step the tablets are packed in the blisters by

the BLISTERS PACKING MACHINE. The basic raw

materials of packaging is PVC.

3. In this process the tablets are packed and

transformed into the strips of 10 tablets. On the back

of the strip the details like ingredients, brand name,

manufacturing company‟s name are printed or

embossed.

4. These strips are packed into the boxes and are

stored into the storage facility.


OUTPUT

After considering above manufacturing process ,we get the final

product that is FREECOLD tablet (500mg) and FREECOLD strip

which are shown below:

TABLETS & TRIPS


COST OF PROJECT

SR NO. Particulars AMOUNT (Rs.)

1 Land 9897200

2 Building 6128000

3 Machineries 1080000

4 Furniture &

Fixtures 384500

5 Preliminary

Expenses 4350300

6 Misc Assets 86000

7 Working Capital 1222000

Total 23148000

Means of Finance

Equity Shares (56% of Total

Cost of Project)Face

Value @ Rs.10 each

13148000

Bank Loan (44% of Total Cost of

Project) 10000000

Total 23148000


Cost of Land

Description of Land

Rate per Square

Feet

Total

95x70 square feet= 6650

square feet

1450 9642500

Document Charges 76410

Other Legal Charges 178290

Total 9897200

Cost of Building

Details of Construction Construction Rate per

Square Feet (Rs.) Total

Ground Floor:

6650 sq feet- 800 sq feet =

5850 sq feet 800 4680000

First Floor:

17x80 = 1360 square feet 800 1088000

30x15 = 450 square feet 800 360000

Total 6128000


Cost of Machineries

Particulars Quantity Rate ( Rs.)

Total (Rs.)

Mixer Guibao W-series 1 250000 250000

Single Rotary Tablet Press 1 480000 480000

Coating Machine 1 125000 125000

Packaging Machine 1 225000 225000

Total 1080000


Cost of Furniture & Fixtures

Particulars Unit Unit

Price Total

Table 12 2200 26400

Revolving Chair

13 800 10400

Chair 29 200 5800

Fans 34 850 28900

Tube-Lights 62 100 6200

Filling Cabinets

8 4000 32000

Sofa Sets 2 20000 40000

Racks 1 18000 18000

Glass Tables 2 1500 3000

Food Tables 8 5000 40000

Misc Furniture 173800

Total 384500


Preliminary Expenses

Particulars Amount (Rs.)

Advertisement Expenses 3600000

Loan Processing Fees 50000

Consumption 2500

Marketing Research 30000

Telephone Deposit 5000

Electric 5000

Registration Fees 10000

Web-site Creation 30000

Consultation Charges 612800

Water Charges 5000

Total 4350300

Miscellaneous Assets

Particulars Unit Unit Price

Total

Telephone 5 1500 7500

Printer 2 4000 8000

Computers 5 12000 60000


Fire Extinguishers 3 3500 10500

Total 86000

Working Capital

Particulars 1 2 3 4 5

Current Assets:

Raw Material 830000 1037716 651410 711082 812711

Finished Goods

367074 385710 410000 431000 474000

Debtors 264109 294236 316916 339596 384352

1461183 1717662 1378326 1481678 1671063

Current Liabilities:

Creditors 239183 239233 240096 270863 307955

Net

Working

Capital

1222000 1478429 1138230 1210815 1363108


ASSUMPTION

Assumption that have been made for making this

financial feasibility report:

IDBI 12%, secured loan (Rs.10000000) is taken against the security of land and machinery document.

There are 313 working days in a year.

Estimated production will do and sales of them will be

realized.

The credit allowed to debtors is 30 days.

The credit is received from the creditors is also 30 days.

Fixed assets are valued at historical cost less depreciation as per Income tax act, 1961 on S.L.M.

bases.

We have assumed the following Sales Classification.


CLASSIFICATION PERCENTAGE

Job work (cash) 50%

Remaining (50%) Cash sales

Credit sales

30%

20%

Total sales 100%

Debtors are valued on credit sales made during the

year for calculation of working capital.

No discount or commission is provided to customer or

dealers.

We assume that face value of equity share is Rs. 10

each & 1% dividend is to be paid to all the equity share

holders.

Carriage inward is calculated around 5% on total raw

material consumed.

We have assumed that there will be 10% increase in

salary of the direct labour in 3 rd & 5 th year respectively and 10% increase in salary for all other employees in

5 th year.

We have assumed ONE MONTH salary per annum as

bonus to all the employees of our organization.

Purchase price of raw material and selling price of

finished good is assumed to remain fix for the five years.

There are no by products or work in progress at the end of the year.


Wastage and obsolesce of raw material is quite negligible.

The total production capacity is 4507200.We have assumed the production capacity as 60%, 65%, 70%,

80%, 85% respectively.

Balance Sheet



Source of funds:

Share Capital 13148000 13148000 13148000 13148000 13148000

General

Reserve 0 200000 400000 600000 800000

Profit & Loss

Account 1376508 1527193 1854563 2666792 3696859

0

Loan 8000000 6000000 4000000 2000000 0

Total 22524508 20875193 19402563 18414792 17644859

Application

of Fund:

Gross

Block 17575700 16753850 15932000 15110150 14288300

Depreciation 821850 821850 821850 821850 821850

Net Block 16753850 15932000 15110150 14288300 13466450

Current Assets &

Advances:

Finished

Goods 367074 385710 410000 431000 474000

Raw Materials 830000 1037716 651410 711082 812711

Debtors 264109 294236 316916 339596 384352

Total of Current

Assets 1461183 1717662 1378326 1481678 1671063

Current

Liabilities:

Creditors 239183 239233 240096 270863 307955

Dividend 131480 131480 131480 131480 131480

Net worth 1090520 1346949 1006750 1079335 1231628

Preliminary Expenses 3480240 2610180 1740120 870060 0

Cash 1199898 986064 1545543 2177097 2946781

Total 22524508 20875193 19402563 18414792 17644859


Profit & Loss Statement


Incomes:

Sales 9185120 10232880 11021640 11810400 13366920

Add :Closing

Stock 367074 385710 410000 431000 474000

Less : Opening Stock

0 367074 385710 410000 431000

Revenue from job-work

7872960 8771040 9447120 10123200 11457360

Total

incomes 17425154 19022556 20493050 21954600 24867280

Expenses:

Raw material

consumed 7488262 8112284 8736306 9360328 10608371

Carriage

Inward 374413 405614 436815 468016 530419

Direct Expenses

166000 168000 186600 188600 208760

Factory Overheads

1637000 1766000 2170000 2274000 2401400

Admin.

Overheads 1944650 1959850 1989850 2019850 2175550

Selling

Overheads 1490500 2012500 2147500 1885500 1952950

Interest on Loan

1200000 960000 720000 480000 240000

Audit fees 20000 23000 23000 25000 25000

Insurance 50000 55000 55000 60000 60000

Water charges 30000 35000 35000 40000 40000

Preliminary

expenses w/off 870060 870060 870060 870060 870060

Total

Expenses 15270885 16367308 17370131 17671354 19112510

Profit Before

Tax (PBT) 2154269 2655248 3122919 4283246 5754770


Tax @ 30% 646281 796574 936876 1284974 1726431

Profit After Tax (PAT)

1507988 1858674 2186043 2998272 4028339

Dividend 131480 131480 131480 131480 131480

Total 1376508 1727194 2054563 2866792 3896859

General Reserve

0 200000 200000 200000 200000

Balance

credited to b/s

1376508 1527194 1854563 2666792 3696859


Cash Flow

Operating Balance

of Profit & Loss Account

1 2 3 4 5

Opening Balance of P&L A/c

0 1376508 1858674 2186043 2998272

Less: Closing Balance

of P&L A/c

1376508 1527194 2186043 2998272 4028339

-150686 -327369 -812229 -1030067

Add: Noncash items

General Reserves 0 200000 200000 200000 200000

Provision for taxes 646281 796574 936876 1284974 1726431

Interest on Loan 1200000 960000 720000 480000 240000

Proposed Dividend 131480 131480 131480 131480 131480

Depreciation 821850 821850 821850 821850 821850

Preliminary Expenses

w/off

870060 870060 870060 870060 870060

5046179 3930649 4007636 4600593 5019888

Changes in Working Capital

Stock of Raw-Materials -830000 -207716 386306 -59672 -101629

Stock of Finished

Goods

-367074 -18636 -24290 -21000 -43000

Debtors -264109 -30127 -22680 -22680 -44756

Creditors 239183 50 863 30767 37092

Less: Income tax paid

-646281 -796574 -936876 -1284974 -1726431

Net cash flow from

Operating Activity [A]

3177898 2877646 3410959 3243034 3141164

Cash flow from

Investing Activity

Purchase of Machineries

-1080000 0 0 0 0


Purchase of Land -9897200 0 0 0 0

Purchase of Building -6128000 0 0 0 0

Purchase of Furniture -384500 0 0 0 0

0 0 0 0

Purchase of Other assets

-86000 0 0 0 0

Preliminary Expenses -4350300 0 0 0 0

Net Cash flow from

Investing Activity

[B]

-21926000 0 0 0 0

Cash Flow from

Financing Activities

Share capital 13148000 0 0 0 0

Loan 10000000 0 0 0 0

Less: Repayment of

loan

-2000000 -2000000 -2000000 -

2000000

-2000000

Interest on loan -1200000 -960000 -720000 -480000 -240000

Dividend 0 -131480 -131480 -131480 -131480

Net Cash Flow from Financing Activities

[C]

19948000 -3091480 -2851480 -2611480

-2371480

Total [A]+[B]+[C] 1199898 -213834 559479 631554 769684

Opening Balance of

Cash

0 1199898 986064 1545543 2177097

Closing Balance of

Cash

1199898 986064 1545543 2177097 2946781


Cost Sheet


Total Raw

material consumed

7488262 8112284 8736306 9360328 10608371

Carriage Inward

374413 405614 436815 468016 530419

Direct labour 144000 144000 158400 158400 174240

Bonus to

Direct Labour 12000 12000 13200 13200 14520

Direct

Expenses 10000 12000 15000 17000 20000

Prime cost 8028675 8685898 9359721 10016944 11347550

Factory o/h 1637000 1766000 2170000 2274000 2401400

Work cost 9665675 10451898 11529721 12290944 13748950

Administration

o/h 1944650 1959850 1989850 2019850 2175550

Cost of

Production 11610325 12411748 13519571 14310794 15924500

Add: Op. stock of

Finished Goods

0 367074 385710 410000 431000


Less: Closing

stock 367074 385710 410000 431000 474000

Cost of sale 11243251 12393112 13495281 14289794 15881500

Selling &

Distribution O/h

1490500 2012500 2147500 1885500 1952950

Cost of Goods Sold

12733751 14405612 15642781 16175294 17834450

Profit 4324329 4598308 4825979 5758306 6989830

Sales 17058080 19003920 20468760 21933600 24824280

Sales Budget


Particulars 1(60%) 2(65%) 3(70%) 4(75%) 5(85%)

Opening stock 0 80000 86000 92000 98000

Production(unit) 2704320 2929680 3155040 3380400 3831120

Closing Stock 80000 86000 92000 98000 110000

Sales 2624320 2923680 3149040 3374400 3819120

Job-Work Sales

Year 1 Rs. Per Strip

Job work (50% of sales) 1312160 6 7872960 7872960

Cash (30%) 1312160 7 9185120 6429584

Credit( 20%) 2755536

Total 2624320 17058080 17058080


Year 2

Rs. Per

Strip

Job work (50% of sales) 1461840 6 8771040 8771040

Cash (30%) 1461840 7 10232880 7163016

Credit (20%) 3069864

Total 2923680 19003920 19003920


Job work(50% of sales) 1574520 6 9447120 9447120

Cash(30%) 1574520 7 11021640 7715148

Credit(20%) 3306492

Total 3149040 20468760 20468760

Year 4

Rs. Per

Strip

Job work(50% of sales) 1687200 6 10123200 10123200

Cash(30%) 1687200 7 11810400 8267280

Credit(20%) 3543120

Total 21933600 21933600


Job work(50% of sales) 1909560 6 11457360 11457360

Cash(30%) 1909560 7 13366920 9356844

Credit(20%) 4010076

Total 24824280 24824280

R. M. Consumed



Opening Stock

0 830000 1037716 651410 711082

Purchase 8318262 8320000 8350000 9420000 10710000

Closing

Stock 830000 1037716 651410 711082 812711

Raw

Material

consumed

7488262 8112284 8736306 9360328 10608371


SALARY STRUCTURE

Particulars Salary Per

Annum

No. of

Employees

1 2 3 4 5

Direct Labour 36000 4 144000 144000 158400 158400 174240

Factory Overheads:

Manager 156000 1 156000 156000 156000 156000 171600

Executive 96000 1 96000 96000 96000 96000 105600

Technichian 84000 1 84000 84000 84000 84000 92400

336000 336000 336000 336000 369600

Human Resource

Department:

Manager 144000 1 144000 144000 144000 144000 158400

Executive 84000 1 84000 84000 84000 84000 92400

Quality Control

Department:

Manager 216000 1 216000 216000 216000 216000 237600

Finance Department:

Manager 216000 1 216000 216000 216000 216000 237600

Accountant 108000 1 108000 108000 108000 108000 118800

Administration Department:

Clerks 60000 2 120000 120000 120000 120000 132000

Peons 15000 2 30000 30000 30000 30000 33000

Security Guards 15000 2 30000 30000 30000 30000 33000

948000 948000 948000 948000 1042800

Selling & Distribution:


Manager 252000 1 252000 252000 252000 252000 277200

Area Manager

108000 2 216000 216000 216000 216000 237600

Sales Exeutives 84000 5 420000 420000 420000 420000 462000

Business Development

Executive

150000 1 150000 150000 150000 150000 165000

1038000 1038000 1038000 1038000 1141800


Calculation of Bonus

Particulars Bonus per Annum

No. of Employees

1 2 3 4 5

Direct Labour 3000 4 12000 12000 13200 13200 14520

Factory

Overheads:

Manager 13000 1 13000 13000 13000 13000 14300

Executive 8000 1 8000 8000 8000 8000 8800

Technichian 7000 1 7000 7000 7000 7000 7700

28000 28000 28000 28000 30800

Human

Resource Department:

Manager 12000 1 12000 12000 12000 12000 13200

Executive 7000 1 7000 7000 7000 7000 7700

Quality Control

Department:

Manager 18000 1 18000 18000 18000 18000 19800

Finance

Department:

Manager 18000 1 18000 18000 19800 19800 21780

Accountant 9000 1 9000 9000 9900 9900 10890

Administration


Department:

Clerks 5000 2 10000 10000 11000 11000 12100

Peons 1250 2 2500 2500 2750 2750 3024

Security Guards

1250 2 2500 2500 2750 2750 3024

79000 79000 83200 83200 91518

Selling &

Distribution:

Manager 21000 1 21000 21000 21000 21000 23100

Area Manager 9000 2 18000 18000 18000 18000 19800

Sales Exeutives

7000 5 35000 35000 35000 35000 38500

Business

Development Executive

12500 1 12500 12500 12500 12500 13750

86500 86500 86500 86500 95150


Factory Overheads


Power consumption

1075000 1200000 1600000 1700000 1775000

Repairs & Maintenances

36000 40000 44000 48000 64000

Depreciation on

Machineries 162000 162000 162000 162000 162000

Salary 336000 336000 336000 336000 369600

Bonus 28000 28000 28000 28000 30800

Total 1637000 1766000 2170000 2274000 2401400

Administrative Overheads


Municipal tax 45000 50000 55000 60000 70000


Depreciation 659850 659850 659850 659850 659850

Salary 948000 948000 948000 948000 1042800

Bonus 79000 79000 79000 79000 86900

Telephone 5000 7000 10000 14000 16000

Printing 20000 22000 26000 34000 40000

Power 187800 194000 212000 225000 260000

Total 1944650 1959850 1989850 2019850 2175550


DEPRECIATION

Selling Overheads


Transportation

Expenses 360000 380000 410000 445000 495000

Salary 1038000 1038000 1038000 1038000 1141800

Bonus 86500 86500 86500 86500 95150

Telephone

Expenses 6000 8000 13000 16000 21000

Advertisement

Expenses 0 500000 600000 300000 200000

Total 1490500 2012500 2147500 1885500 1952950


Depreciation on Machineries

(at 15%)


Opening

Balance 1080000 918000 756000 594000 432000

Depreciation 162000 162000 162000 162000 162000

Closing Balance

918000 756000 594000 432000 270000

Depreciation on Building

(at 10%)


Opening Balance

6128000 551520

0 490240

0 4289600

3676800

Depreciation

612800 612800 612800 612800 612800

Closing Balance

5515200 490240

0 428960

0 3676800

3064000


Depreciation on Other Assets

(at 10%)


Opening Balance 86000 77400 68800 60200 51600

Depreciation 8600 8600 8600 8600 8600

Closing

Balance 77400 68800 60200 51600 43000

Depreciation on Furniture

(at 10%)


Opening Balance

384500 346050 307600 269150 230700

Depreciation 38450 38450 38450 38450 38450

Closing

Balance 346050 307600 269150 230700 192250

Total Depreciation


Total

Depreciation

821850

821850

821850

821850

821850


LOAN STATEMENT

Year Loan amt. Interest Loan Amount

Payable

Remaining Amount

Total Amount Payable

1 10000000 1200000 2000000 8000000 3200000

2 8000000 960000 2000000 6000000 2960000

3 6000000 720000 2000000 4000000 2720000

4 4000000 480000 2000000 2000000 2480000

5 2000000 240000 2000000 0 2240000


CALCULATION OF PAY-BACK PERIOD

Year PAT Depreciation Preliminary w/off CFAT C.CFAT

1 1507988 821850 870060 3199898 3199898

2 1858674 821850 870060 3550584 6750482

3 2186043 821850 870060 3877953 10628435

4 2998272 821850 870060 4690182 15318617

5 4028339 821850 870060 5720249 21038866

6 5275000 821850 0 6096850 27135716

7 7350000 821850 0 8171850 35307566

8 7578000 821850 0 8399850 43707416

Payback Period:- 5 years and 5.14 months


[Cost of capital

= Cost of debt + Cost of equit

= [I (1-t) + Dividend paid/Total share capital]*100

= 0.12(1-0.3) + 131480/13148000*10

= [0.084 + 0.01]*100

= 0.094*100

CALCULATION OF DISCOUNTED PAY-

BACK PERIOD

Year CFAT

P.V. Factor

@10% Amount Cumulative

1 3199898 0.909 2908707 2397758

2 3550584 0.826 2932782 5330540

3 3877953 0.751 2912343 8242883

4 4690182 0.683 3203394 11446277

5 5720249 0.621 3552275 14998552

6 6096850 0.564 3438623 18437175

7 8171850 0.513 4192159 22629334

8 8399850 0.467 3922730 26552064


= 9.4%

~ 10%

Discounted Pay-back Period: 7 years and 1.58 months]

Net Present Value

Year Cash flow P.V. factor @10%

1 3199898 0.909 2908707 2908707

2 3550584 0.826 2932782 5841489

3 3877953 0.751 2912343 8753832

4 4690182 0.683 3203394 11957226

-- 19988949 0.57 11393701 23350927

Less: Cost of Project 23148000

P.V. of cash inflow

202927


Internal Rate of Return

Year Cash flow

P.V.

factor @10%

1 3199898 0.909 2908707 2908707

2 3550584 0.826 2932782 5841489

3 3877953 0.751 2912343 8753832

4 4690182 0.683 3203394 11957226

------ 19988949 0.57 11393701 23350927

Year Cash flow P.V.

factor

@12%

1 3199898 0.893 2857509 2908707

2 3550584 0.797 2829815 5738522

3 3877953 0.712 2761103 8499625

4 4690182 0.636 2982956 11482581

-

----- 19988949 0.51 10194364 21676945


= 10% + (23350927-23148000) * 2%

(23350927-21676945)

=10.24%

We are not getting NPV & IRR in 5 years so we have taken accumulated cash

flow of 5,6,7 year & we take average of P.V factor 5,6,7 year.


RATIO ANALYSIS

Particulars 1st year 2nd year 3rd year 4th year 5th year

(1) Current ratio

= C.A.

C.L.

7.17:1 7.29:1 7.86:1 9.09:1 10.5:1

(2) liquid ratio

= liquid assets

Liquid liab.

3.94:1 3.45:1 5.01:1 6.25:1 7.58:1

(3) Net profit

= N. PAT*100

Sales

16.41% 18.16% 19.83% 25.38% 30.13%

(4) Return on

share holders

fund

= NPAT*100

Sha. Holders’ Fund

13.65% 15.15% 16.00% 19.28% 22.83%

(5) Debt equity ratio

= long term liab.

Sha. Hold.’s fund

0.72:1 0.48:1 0.29:1 0.12:1 0


(6) stock turnover

ratio

= C.O.G.S.

Avg. stock

34.68:1 38.27:1 39.31:1 38.46:1 39.41:1

(7) Debtors ratio

= (drs+B/r)360

Cr.sales

30days 30days 30days 30days 30days

(8) Creditors ratio

= (crs+B/P)360

Cr. Pur.

30days 30days 30days 30days 30days

(9) FA turn over

ratio

= sales

FA

0.54times 0.64time

s

0.72time

s 0.82times 0.99times


SWOT

STREGNTH

WEAKNESS

OPPORTUNITY

THREAT

SWOT ANALYSIS


(1) STRENGTH

It is an inherent capacity of the organization which it

can use to gain strategic advantage over its competitors.

Strength of our company can be identified as under:

(a) The labour is easily and cheaply available from the

nearby villages. For worker no particular skill or any

formal training is required.

(b) As our plant is near to the National Highway 8, we will

have better transportation facility

(c) Our plant is far from the town and other residential

area so it would not cause any harm to the population.

(2) WEAKNESS

It is an inherent limitation or constraint which may

inhibit the growth of an organization.

(a) At initial stage the medicine manufacturing requires a

huge amount of investment. That is why at initial stage

we have purchased small machineries.


(3) OPPORTUNITY

An opportunity is a favorable condition in the

organization‟s environment which enables it to strengthen its

position.

Now-a-days Gujarat is becoming industrial hub. Many

co. are coming and overall economy of Gujarat is in direction

towards development. Many people are migrated in the

Gujarat from the other states so there is a huge demand for

medicines.

(4) THREAT

A threat is an unfavorable condition in the

organization‟s environment which causes a risk for, or

damage to, the organization‟s position.

(a) Being a high profitable business, there may be

possibility of entry of a new company to earn profit which

may divide the market share.

(b) The existing firm may adopt new rigorous promotional

activity which may create some problem to capture the

market.


CONCLUSION

By doing research, we come to the conclusion that

considering the conditions and circumstances, the project is

definitely viable.

This task has provided us an opportunity to play a role as an

entrepreneur, we are confident that it will help us in our career

in future.

We are thankful to the supporters who have contributed

somewhere and somewhat to our project. Thanks goes to not

only to the FAMYCARE PHARMACEUTICALS which we visited for

better idea about the product and production but also to the

faculty guide who guided us at any time without fail and provided

us an opportunity to learn so much about practical aspect of

corporate world.


BIBLIOGRAPHY

Marketing management - Philip Kotler

Finance management - I. M. Pandey, Khan & Jain

WEBOGRAPHY

www.google.com

www.pharmapedia.com

www.zamanzar.com

www.99acres.com

http://www.google.com/

http://www.pharmapedia.com/

http://www.zamanzar.com/

http://www.99acres.com/

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