DECLARATION

I, the under singed Mr. Kadri Mohmedfaizal Yusufmiya the student of T.Y.B.B.A. hereby declare that the project work presented in this report is my own work and has been carried out under the supervision of Prof. Gaurav Mehta of D.D.Nagda B.B.A. College of Jamnagar.

This report has not been submitted previously to any other University for examination on any other purpose.

Date: Place: Jamnagar.

Kadri Mohmedfaizal Yusufmiya (T.Y.B.B.A.)

ACKNOWLEDGEMENT
It is really a matter of great pleasure for me preset this creative and practical work. At this stage, report is an important part of learning and every entrepreneur prepares it before starting of actual production.

Our college SHRI. D. D. NAGDA B.B.A. COLLEGE deserves special thanks for giving us the opportunity to undertake this project as part of the syllabus of T.Y.B.B.A owe my sincere gratitude of PROF. GAURAV

MEHTA without whose guidance and encouragement this project would not have been possible.

Date: Place: Jamnagar.

Kadri Mohmedfaizal Yusufmiya (T.Y.B.B.A.)

PREFACE
Above said proved holds the importance of practice & action. The field of management provides practical as well as theoretical knowledge

simultaneously.

As developing country, In India economy contribution of Small Scale Industries ads it is supportive to big Industries & makes economy to reach highest of prospering.

The subject Entrepreneurships & Management of Small Business is included in T.Y.B.B.A. with a view to develop & implement the knowledge in action. It is essential for BBA student, who wants to become future entrepreneurs, to get practice from the inception. I have prepared my project report on STAR LUGGAGE INDUSTRY I have got a chance to acquire practical knowledge at the time of gathering. The main objective of this project report is to make students learn about various factors that should be taken into consideration before setting up an industry. In other words, it is purely, Entrepreneurship development & training for the establishment of small-scale industry.

INDEX
Sr. No. (A) 1. 2. 3. 4. 5. 6. (B) 7. 8. 9. (C) 10. 11. 12. 13. Particulars Page. No.

GENERAL INFORMATION
Introduction to S. S. I. Project At a Glance Introduction to the Unit Bio-data of Partners Justification of Location Organization Structure 7 8 8 9 11 15

MARKETING DETAILS
Market Potential
Competition Pricing Policy

17 18 19

PRODUCTION DETAILS
Production Details Raw-Material Consumed Raw-Material Suppliers Machinery 21 23 24 25

14. 15. 16. (D) 17. 18. 19. 20. 21. 22. 23. 24. 25. (E)

Production Capacity Schedule Manufacturing Process

Quality Assurance

25 26 28

FINANCIAL DETAILS
Schedule for fixed Assets Total Fixed Assets Schedule for Required Manpower Working Capital Requirement Total Working Capital Total Cost of the Project Sources of Finance Production Capacity Schedule Profitability Analysis 30 31 32 34 36 37 38 40 40 44

CONCLUSION

(F)

APPENDIX

45

(G)

BIBLIOGRAPHY

46

GENERAL INFORMATOIN

INTRODUCTION OF SSI
In todays era, where global competition exists. There is need for professional management in every sector.

So, our Finance Ministers and other economists always said that the S. S. I. is the only base or pillar of the Indian economy. Most of the business carried out in India is a small scale.

The S. S. I. is enjoying the success of department of economy because it is the main part of the economy. It also provides the platform and opportunity to the new entrepreneur. It provides employment opportunities, Raw material or inputs to large scale and middle scale industry.

S. S. I. is the base for middle scale & large-scale industry. It also gives chance to new entrepreneurs to start the unit with the limited capital and it would be ultimately plays the major role in sharing the development of company.

The S. S. I. makes the perfect entrepreneurs throught the experiences and provides high quality of Development towards personality, skills and sense.

PROJECT AT A GLANCE
Name of the unit Form of the unit Size of the unit SSI Registration No. Products Name of Partners : : : : : : STAR Luggage Industry Partnership Firm Small Scale Applied Suitcase, Handbags, Purses Mr. Faizal Kadri Mr. Noman Kadri 11, Golden Market Opp. Dr. Rathi Hospital, Summair Club Road, Jamnagar. Sanjari Complex - A/3, Opp. Hotel President, Nr. Town hall, Jamnagar. Plot No.101 - STAR, Keshav industrial Estate, Hirji Mistry Road, Jamnagar. Navanagar Co-operative Bank Ltd.

Registered Office

Showroom Location

Factory Location

Bankers

NAME AND ADDRESS OF PARTNERS

PARTNER ( 1 ):

Name

Mr. Faizal Kadri

Age

22 years

Education Qualification

M.B.A. & B.B.A.

Address

Khojagate, Ali Baug - A, 2nd Floor, Flat No.11, Nr. Hajipeer chowk, Jamnagar - 361001.

Experience

3 years

Financial Contribution

50 %

Responsibility

Marketing and Personnel Department

PARTNER ( 2 ):

Name

Mr. Noman Kadri

Age

27 years

Education Qualification

C. A. & B.Com.

Address

Khojagate, Ali Baug - B, 3nd Floor, Flat No.15, Nr. Hajipeer chowk, Jamnagar - 361001.

Experience

5 years

Financial Contribution

50 %

Responsibility

Production and Financial Department

10

PROPOSED LOCATION JUSTIFICATION

Location of any unit is the most important and crucial decision because once the building is constructed and the plant is located then it is not easy to move and involves a huge amount of Investment. The Industrial location plays an important role on the success or failure of the industry or unit. But this decision is affected by many factors.

Location of a business involves a large, relatively permanent investment. If the site selection is not proper, all the money spent on factory building, machinery, and their installation will go in waste and a great loss. Choice of location is done by considering several factors like, availability of raw material, man power, government policies, and availability of banking, power and transportation facilities.

Meaning : Plant Location may be understood as the function of determining where the plant should be located for maximum operating economy and effectiveness.

There are several factors which should be taken into consideration while selecting the location of the industry and they are as follows.

Availability of Raw Material : It is necessary to consider the adequate supply of raw materials and the nature of raw material. The major component or input which is very important part of any production process is availability of raw material. Availability of raw material at proper time, at reasonable rate, in the right quantity and quality directly affect the price of the final output.

11

As the Unit is situated at near highway, the raw material for manufacturing the Suitcases is easily available. So there is not any problem related to the raw materials.

Nearness to market : Every producer wants to sell his product in the market. Nearness to the market is important for supplying goods to the customers in a minimum period of time adjusting supply according to changes in demand and gaining control over the market. Nearness to the market reduces the cost of transporting finished goods to the market and enhances taking advantage of favorable prices and demand in the market.

Supply of labour : The supply labour at low cost is very important. Machines can not produce anything without the availability of skilled laborers. If the supply of laborers is not regular, machines and machines-hours are lost forever. As the unit is situated at industrial centers, workers are easily available and at reasonable rates from nearby local area.

Transport Facilities : Transport facilities are essential for the bringing raw material and men to the factory and for carrying the finished goods from the factory to the market. In other words, places with the well developed means of transport attract industries. As the unit is blessed with well developed roads, all the transport facilities are available at cheaper rate and on regular basis.

12

Availability of power : Power is necessary for the process of production and for transporting finished goods and raw materials. Power shortages lead to tremendous losses due to the stoppages of machinery. Industries must have a sufficient and regular supply of power if continuity in production is to be maintained and if industries are to be operating at the full capacity. At that place we are getting enough power supply through G.E.B. to continue our production process.

Type of industries available : Intermediary industry which provide Resin, Fibre, leather, Fabric, Plastic, handles, Zippers, Machinery & other general items.

Infrastructural Facilities : Easy transportation on road of raw materials. Cheap land rates and adequate availability of land. Facilities like water supply, electricity. Availability of both skilled labour from city and unskilled labour from nearby villages. Substantial Market as it is near to city.

13

INTRODUCTION TO THE PRODUCT

Luggage Industries are working since 2300 years approximately. This Industry had seen many development and deficits in the past. In the Ancient time the Luggage had made from Bamboo and other grasses. Then it moved towards cloth then again moved towards Wood and again moved to Iron and Steel and at last. It was moved towards plastic.

Since every human moves here and there and they always moves on they need to carry with him their Daily prior utilities and it is only satisfied with the Luggage carrier.

Luggage carrier is divided into different type of Names and Brands. E.g. SUITCASE, BRIEFCASE, HANDBAG, SHOULDER BAG etc.

Just for your Information the Total Turnovers of Luggage Industry in India is about Rs. 758 crores. So it is the developing Industry and big Industry. And last but not the least it is a type of thing that a child also knows about it.

14

ORGANISATION STRUCTURE
PARTNERS

Production Department

Personal Department

Marketing Department

Financial Department

Designer

Peons

Assistant Manager

Accountant

Supervisors

Salesman

Clerk

Workers Quality Controller

Peon

Workers Storekeeper

15

MARKETING DETAILS

16

MARKET POTENTIAL
As we have seen before, the demand of Luggage Industry will never decrease but it will increase day by day.

Market Potential means. If you produce a product and put into market for sale what types of features your product has so that consumer, market can be attracted. In short, what & how is the ability to develop your product. Every entrepreneur should define and decide his products Market Potential. There is Total Rs. 758 crores (approx.) turnover or supply of the Luggage Industry. There are the Total demand of Luggage Industry is about Rs. 1700 to Rs. 1800 crores and will be near by it. But in Luggage Industry market of India have very large gap between the demand & supply. In the Luggage Industries of India, there are many Small Scale & Medium Scale industries and also a Large & Huge Industries. In this Market, now some foreign companies have come up to India for capture the market share. In India both types of Prospects are there. One who prefer the quality and second who prefer the cost. Our unit will provides quality product to its Prospects. This Industry is like a open sky, because. It has a widened scope for development.

So, our unit will be success in this field by fill the gap and provide the best Quality Product.

17

COMPETITION
In todays business world, there will be hardly any field there will not be competition among two or more unit for increasing a market share of the product. Today this competition has reached to its top level. It becomes the cut throat competition in the market. The organization has to adopt newer and newer technologies to survive in the market against such cut throat competition that they are facing from competitions.

In the same way, we are also facing competition in the market as there are many units producing the Suitcases. If we talk about the Indian & International market, the main competitors are VIP, AMERICAN TOURISTER, SAFARI, having the wide popularity in the market and at the same time it is standing in the market since very long period of time.

18

PRICING POLICY
Pricing policies and decisions constitute the general framework within which pricing decisions should be made in order to achieve the pricing objectives. They provide guidelines within which pricing strategy is formulated and implanted. Each firm designs its pricing policies and strategies to achieve the marketing objectives like customer-delight, profitable sales volume, increased marketing share and better public image. Price is the only variable factor determines the revenue or income.

Without price there cannot be marketing. Price denotes the value of a product or service express in money. The most important task of any business is to decide its pricing policy. There are so many pricing methods used in todays business activities.

We follow the simply method of fixing the price of the product. We take into account two factors while determining the price of the product and they are Cost of the Production & Competitors Price at the time fixing the price.

19

PRODUCTION DETAILS

20

PRODUCT DETAILS
Our Products will be made from mixture of high quality plastic and fibre with high density so it will be light weight and very strong.

Our product will be as following:

SUITCASE: Four sizes of suitcase will be available for the small family. 1. 18 2. 24 3. 30 4. 36

PRODUCT FEATURES: Our product has and attractive features which are as follow:

1. STRENGTH: Our Luggage carriers will be made from high density fibre with mixture of High quality plastic so it would make the product unbreakable.

2. SAFETY: In our luggage carriers we would assure 100% guarantee of safety because it has a secure design and strong frame work so it provides full safety against theft, fire, Hazardous Chemical, Accident etc.

21

3. LOCKING SYSTEM: As per the present age there is an increasing fear of theft. Generally in other luggage carrier has two similar locks which are ordinary; But in my product there would be only one central lock with two keys and it would be totally inside the body of the luggage carriers and it would be made by a special orders in Punjab.

4. LIGHT WEIGT: In the present age, the human has become very comforts demanding, so we keep an eye on this aspect and we shall make the magically light weight product with the help of research.

5. NEW DESIGN: Though, it is an exceptional case we shall give an extra ordinary design, outlook comfort ness, colour, shape, size and nearly developed exterior appearance.

6. WARRANTY PERIOD: In the present age, every luggage carrier product gives 1 to 7 years warranty time to customers. But we shall provide the best quality so we also would be give attractive 3 years warranty period.

7. MEDIUM PRICE: At that time, there are Luggage carriers available from Rs. 100 to Rs. 25000 but it depends upon customers beliefs, need status, loyalty etc. we should provide the medium range for middle class and upper-middle class because it is a Major community.

22

8. PRODUCT BY CLASS: Some of Industry emphases on any preferred class luggage carrier like, Suitcase, Briefcase, Hand Bag, Trolley Bag, shoulder Bag, Traveler Bag etc. But from the beginning we show provide a product class and depth for the different needs of the different prospectus.

RAW - MATERIAL CONSUMED

Raw material is main part of the finished product. It is always a input for every finished product. There are many types of raw materials in the different proportion.

23

RAW MATERIAL SUPPLIERS

(1) PLASTIC GRANULES: Reliance Industries Limited, Mumbai.

(2)

RESIN, FIBRE: FINOLEX fibre industry, Baroda.

(3)

LASTIC, RUBBER PIPE FRAME: Sudhir Farma Pvt. Ltd. Ahmedabad.

(4)

REVOLVING WHEELS, HARDWARE Etc: Hatim Bothers, Delhi.

(5)

HANDLE & HANDLE BAR: Prince Plastics Pvt. Ltd., Mumbai.

(6)

SPONGE SHEET, ABSORBS, MATE: VIJAY Handicrafts, Ahmedabad.

(7)

ZIPPER CHAIN: CNA Chains Pvt. Ltd., New Delhi.

24

MACHINERY

If someone wants to manufacture and produce something by the some process, they firstly need machinery because no process can be carried out without proper machine. Every product and process requires different types of machines. All types of Machineries will be purchase from the India or Other Country.

PRODUCTION CAPACITY SCHEDULE

The Installed capacity of our plant will be 80,000 units per annum. But in the first year only 70% of the capacity we can use. And it will be increase by 10% every year. So, we can use total capacity at the end of fourth year.

25

MANUFACTURING PROCESS
STEP: 1

Firstly Plastic granules, resin and fibre will be taken in predecided proportion, and put it in the mixture machine and start the mixture machine and get the proportion at mixture of the plastic granuals Resin and fiber.

STEP: 2

Then that mixture will be fed in the filter of the plastic infection molding machine and the decided die will be fit in the machine and. Machine could be started. After 110 seconds the machine. Automatically open and molded. Suitcase will be polished.

STEP: 3

Then these molded parts will be matched with each other as top & bottom in this stop and fit into each another by the hinges.

STEP: 4

After fitting both the parts, in this step there will be fitting at Tinges Covers, Mate, Zipper, Lastic, Absorbs, Sponge Sheet and Wheels etc.

26

STEP: 5
Then the Suitcase will be come to the locking department. There the locks will be fit internally which will work centrally and the handler bar will be fit and go to the quality control department.

STEP: 6

In the quality control department, all the parts of Suitcase will be check and if it feels ok then it will be sent to packing department.

STEP: 7

In the packing department, the stickers and sign of Name Plate will be attired and the warranty card would be attached and pack it proper.

BRAND LOGO

27

QUALITY ASSURANCE
Quality may be defined as fitness of a product for use. In order to achieve high standards of quality product constantly as demanded by customers, each and every task of manufacturing process is ably manned, closely supervises, perfectly monitored and properly documented. The task began with the procurement of proper raw material and ends with timely delivery of the product with the customer as per their stipulated specification. Quality is everything an organization does in the eyes of customers which will encourage them to regard that organization as one of the best in its field of operation.

Quality is a major pivot for business success or failure. Quality results in sustained profit. Earning profit in one year and incurring loss the very next year will not speak high about an organization. What is needed is sustained profit over a long period of time. This is possible when the organization is able to maintain persistent quality for its product. Better quality means reduced cost for repairs, instruction, scrap, rework and product warranties. We, at Star Luggage Industry are very conscious about the quality of product i.e. Suitcases, briefcases, bags and we try our best to provide the right quality of the product to the consumers.

28

FINANCIAL DETAILS

29

SCHEDULE FOR FIXED ASSETS

(A) Fixed Capital on Land & Building:
Table:-1. Land & Building

No. Particular (1) (2) Land. Building. TOTAL

Area 4,000 sq. mtr. 2,500 sq. mtr.

Rate 100

Amount 4,00,000 10,00,000 14,00,000

(B)

Fixed Capital on Plant & Machinery:

Table:-2. Plant & Machinery

No. (1) (2) (3) (4) (5) (6) (7) (8)

Particular Plastic Injection Molding Machine Hydraulic Mixture Machine Electric Finisher Waste Material Cutter Hand Drill Revate Press Machine Dies (approx.) General tools TOTAL

Quantity 1 1 2 1 2 1 12

Rate 10,00,000 1,00,000 50,000 1,75,000 7,500 20,000 (50,000 to 1,50,000)

Amount 10,00,000 1,00,000 1,00,000 1,75,000 15,000 20,000 12,00,000 25,000 26,35,000

30

(C)

Other Fixed Assets:

Table:-3. Other Fixed Assets

No. (1) (2) (3)

Particular Furniture & Fixture Computers & Systems Vehicles TOTAL

Quantity 4 2

Amount 1,00,000 2,50,000 5,00,000 8,50,000

(D) Preliminary Expenses :

Table:-4. Preliminary Expenses

No. (1)

Particular Preliminary & Pre-operative expenses TOTAL

Amount 1,30,000 1,30,000

(E) Total Fixed Assets :

Table:-5.Total Fixed Assets

No. (1) (2) (3) (4)

Particular Land & Building Plant & Machinery Other Fixed Assets Preliminary Expenses TOTAL

Amount 14,00,000 26,35,000 8,50,000 1,30,000 50,15,000

31

SCHEDULE FOR REQUIRED MANPOWER

(A) TOP LEVEL
Table:-6.Top Level

No. (1) (2) (3)

Particular Manager Accountant Designer TOTAL

No. of Emp. 1 1 1 3

Salary 9,000 4,000 8,000 -

Amount 9,000 4,000 8,000 21,000

(B)

MIDDLE LEVEL
Table:-7. Middle Level

No. (1) (2) (3) (4) (5)

Particular Salesman Clerk cum Typist Storekeeper Supervisor Assistant Manager TOTAL

No. of Emp. 3 1 1 2 1 8

Salary 5,000 2,500 1,500 3,500 4,000

Amount 15,000 2,500 1,500 7,000 4,000 30,000

32

(C)

LOWER LEVEL
Table:-8. Lower Level

No. (1) (2) (3) (4) (5)

Particular Skilled Worker Semiskilled Worker Unskilled Worker Watchman Peon TOTAL

No. of Emp. 5 5 10 01 2 23

Wages 3,600 3,000 2,460 1,600 1,800

Amount 18,000 15,000 24,600 1,600 3,600 62,800

(D)

TOTAL SALARY
Table:-9. Total Salary

No. (1) (2) (3)

Particular Top Level Middle Level Lower Level TOTAL

Amount P. M. 21,000 30,000 62,800 1,13,800

Amount Per Annum 2,52,000 3,60,000 7,53,600 13,65,600

33

WORKING CAPITAL REQUIREMENT

(A) Raw Material Requirement
Table:-10. Raw Material Requirement

No.

Particular

Rate
Rupees

Monthly
Quantity 5 Tons 1 Tons 3 Tons 0.3 Tons 1,000 Mtr 500 sq. Mtr. 2,500 Mtr. 1,500 Nos. 0.10 Tons 0.1 Tons 0.2 Tons Amount 1,35,000 7,000 27,000 7,500 3,500

Yearly
Quantity 60 Tons 12 Tons 36 Tons 3.6 Tons 12,000 Mtr 6,000 sq. Mtr. 30,000 Mtr. 18,000 Nos. 1.2Tons 1.2 Tons 2.4 Tons Amount 16,20,000 84,000 3,24,000 90,000 43,200

(1) (2) (3) (4) (5)

Plastic Granules Resin Fibre Hardware Rubber frame Sponge sheet Lastic

27,000 7,000 9,000 25,000 3.50

(6)

18.00

9,000

1,08,000

(7)

1.70

4,250

51,000

(8) (9) (10) (11) (12)

Wheels Absorber Handle bar & Handle Adhesive Extra exp. TOTAL

4.00 25,000 30,000 22,500

6,000 2,500 3,000 4,500 30,000 2,39,250

72,000 30,000 36,000 54,000 98,000 26,10,200

34

(B)

UTILITY
Table:-11. Utility

No. 1. 2. Total

Designation Electricity Oil

Amount 15,000 1,32,000 1,60,800

(C)

Other Expenses
Table:-12. Other Expenses

No. (1) (2) (3) (4) (5) (6) (7) (8)

Particular Postage & Stationary. Telephone. Consumable Store. Advertising. Transportation. Maintenance. Insurance. Contingency. TOTAL

Monthly Amount 500 2,000 5,000 2,000 4,000 15,000 2,000 2,000 32,500

Yearly Amount 6,000 24,000 60,000 24,000 48,000 1,80,000 24,000 24,000 3,90,000

35

(D)

Staff & Labour Expenses

Table:- 13. Staff & Labour Expenses

No. (1)

Particular Total Wages & Salaries TOTAL

Monthly Amount 1,13,800 1,13,800

Yearly Amount 13,65,600 13,65,600

(E)

TOTAL WORKING CAPITAL

Table:- 14. Total Working Capital

No. (A) (B) (C) (D)

Particular Raw-Material Requirement. UTILITY. Other Expenses. Staff & Labour Expenses. TOTAL

Monthly Required 2,39,250

Yearly Required 26,10,200 1,60,800

32,500 1,13,800 3,85,550

3,90,000 13,65,600 45,26,600

Generally there is the formality of working capital calculation 3 month because it is standard.

Working Capital for 3 Months

= =

3, 85,550 3 11, 56,650

36

TOTAL COST OF THE PROJECT

Total cost of Project is also called as Total investment and it is getting by Total Fixed Capital + Working Capital for three months.

TOTAL FIXED CAPITAL + Working Capital (3 Months) TOTAL INVESTMENT

= = =

50, 15,000 11, 56,650 38, 58,350

37

SOURCES OF FINANCE
(A) SOURCE
Table:-15. Sources of Finance

No. (i) (ii)

Particular Owned Capital Barrowed Capital (S.B.I.) TOTAL

Proportion 50% 50% 100%

Amount 20,00,000 20,00,000 40,00,000

(B)

INTEREST
Table:-16. Interest

No. (1) (2)

Particular Interest on owned Capital. Interest on Barrowed Capital. TOTAL

Interest Rate 6% 13%

Amount 1,20,000 2,60,000 3,80,000

(C)

DEPRECIATION

Table:-17. Depreciation

No. (1) (2) (3)

Particular Building. Machinery. Other Assets. TOTAL

Value of Asset 10,00,000 26,35,000 8,50,000

Depreciation Rate 10% 20% 10%

Amount 1,00,000 5,27,000 85,000 7,12,000

38

(D)

FIXED COST
Table:-18. Fixed Cost

No. 1. 2. 3. 4. 5. 6.

Particular Depreciation on Machinery Depreciation on Building Depreciation on other assets Interest on borrowed capital 40%of salary & Wages. 40% of other contingent expenses TOTAL

Rs. 5,27,000 1,00,000 85,000 2,60,000 5,46,000 5,46,000 20,64,000

(E)

COST OF PRODUCTION
Table:-19. Cost of Production

No. 1. 2. 3. 4.

Particular Raw Material Wages & Salary Preliminary Expenses Other Exp. TOTAL

Rs. 26,10,200 13,65,000 1,30,000 3,90,000 44,95,200

39

(F)

PRODUCTION CAPACITY SCHEDULE

Table: - 20. Production capacity

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

Particulars
Weekly sales Monthly sales Yearly sales No. of working days (yearly) No. of working days (monthly)

Total Production
1,167 4,667 56,000

Per Unit Cost

150 150 150

Amount
1,75,000 7,00,000 84,00,000 300 25

(G)

PROFITABILITY ANALYSIS

Table:-21. Profitability Analysis

No. 1. 2. 3. 4. 5. 6. 7. 8.

Particular Sales volume Less: cost of prod Gross Profit Less: Depreciation EBIT Lees:Intrest EBT Less: Provision For Tax EAT (NET PROFIT)

Rs. 84,00,000 44,95,200 39,04,800 7,12,000 31,92,800 3,80,000 28,12,800 7,93,840 20,18,960

40

PROVISION FOR TAXATION

100000 101000 to 150000 @ 10% 151000 to 250000 @ 20% 251000 to ---------- @ 30%

= = = =

NIL 5000 20000 7, 68,840 7, 93,840

Above estimated Net profit of our industry will be divided among the two partners of this unit.

PARTNER - 1

Mr. Faizal Kadri (Profit sharing ratio is 50%)

Rs. 10, 09,480

PARTNER - 2

Mr. Noman Kadri (Profit sharing ratio is 50%)

Rs. 10, 09,480

41

(A) BREAK EVEN ANALYSIS

Break Even Analysis (BEA) is a very useful technique to find out the Break Even Point that is the point at which the firm is not earning any profit or is not incurring any loss. It is the point of no profit and no loss. Any organisation will first strive to reach the Break Even Point and then try to achieve more profit by increasing the sales of the products and reducing the cost of production.

B.E.P.

Fixed cost Fixed cost + Profit

100

20.64,000 28, 29,000 + 20, 18,960 100

50.55 %

42

(B) RETURN ON INVESTMENT

R.O.I.=

E.B.I.T. Cost of Project 100

31, 92,800 58, 18,150 100

54.88 %

(C) NET PROFIT VOLUME

NPV =

Net Profit Sales 100

20, 18,960 84, 00,000 100

24.03%

43

CONCLUSION
Conclusion means to bring an end to anything. Though this conclusion may be end of my project report but this project report or feasibility report has pushed and encouraged me to the real business life.

Any self created thing will be the best thing for anyones life though he may be successful or failed. This kind of feasibility activity will help really anyone or everyone to become a successful entrepreneur, if a proper attention is paid to the project or business.

In todays overpopulated unemployment is the biggest economic problem and so to avoid that self employment can be started through developing this kind of business and for that this kind of feasibility study is helpful.

This is a way to success with some problems and some time failure but at last success will be there with self employment.

The suitcase is demanded in all over world and the fashion trend change every day in Luggage Carrier. At present take on example of world leading, Luggage Carrier Producing Company SAFARI, V.I.P., AMERICAN

TOURISTER etc. have launched the, comfort line Products. So out unit also will be Produce it and it has wide scope & Market.

It indicates future expectation and development of the project according to proposed project is considered to have better projects.

44

APPENDIX
LIST OF TABLES

Table No.
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

Particulars
Fixed Capital on Land & Building Fixed Capital on Plant & Machinery Other Fixed Assets Preliminary Expenses Total Fixed Assets Top Level Middle Level Lower Level Total Salary Raw Material Requirement Utility Other Expenses Staff & Labour Expenses Total Working Capital Source of Finance Interest Depreciation Fixed Cost Cost of Production Production Capacity Schedule Profitability Analysis

Page. No.
30 30 31 31 31 32 32 33 33 34 35 35 36 36 38 38 38 39 39 40 40

45

BIBILOGRAPHY
1. Desai Vasant, Project Management, 2nd Edition, 1999, Himalaya Publishing House. Kapoor Sudarshan, Marketing Management, 1st Edition, June 1997, S. K. Publisher.

2.

3.

Chhabra T. N., Principles and Practice of Management, Edition 1997, J. C. Kapoor for Dhanpat Rai & Co (P) Ltd. Nai Sarak, Delhi.

***
46