MANAGEMENT RESEARCH PROGRAM 2009

FINAL REPORT
ON

ECONOMIC & OPPORTUNITY ANALYSIS

OF
MANUFACTURING SECTOR IN BIKANER

SUBMITTED TO: SUBMITTED BY:

PROF. R. HARISH ARUN KUMAR MODI
ENROLLMENT NO:
08BS0000572

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AUTHORIZATION:

I, Arun Kumar Modi., hereby declare that this project titled “Economic & Opportunity
analysis of manufacturing sector in Bikaner”has been completed by me in IV semester. The
project involved, studying the various factors impacting the growth these mentioned industries
which are as follows: woolen mills, bhujia, sanitary ware, POP. It also includes the comparative
analysis for the same. It also suggests that which industry has more prospects in Bikaner region.

The project was undertaken as a part of the partial fulfillment of the requirement for the M.B.A
program. I also declare that this report has not been submitted to any other institute or company.

Date-15th Feb 2010

Place-IBS, Bangalore

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ACKNOWLEDGEMENT:

I am thankful to my Director Mrs. Lata Chakrobarty for providing me an opportunity to study in

the esteemed organization and learn various aspects of business administration.

I would like to express my gratitude to my Faculty Guide – Prof R. Harish for his able support
and guidance, without which this project would not have been successful. He helped me through
out by lending his thoughtful suggestion on project improvisation.

Lastly I would like to thank my colleagues for sharing their thoughts on this project.

Date: 15th Feb 2010

Place: Bangalore

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 EXECUTIVE SUMMARY
Presently major industries in Bikaner are related to sanitary ware, woolen mills, plaster of Paris
(POP) and Bhujia. Raw material required for all these industries is easily available there and also
at low price, this is the reason why these industries are growing the most (In Bikaner).
This project comprises the areas relating to the study of product launch and its market feasibility.
Situational analysis of the existing products and companies, will lead us to the product which is
of great demand and its marketability aspects. The outcome of the study would increase my
knowledge about the existing market scenario and the expected future demand, profits and
various other aspects relating to the business environment of Rajasthan (Bikaner).

Major concern will be on the following issues:

1) Investment- Investment required setup a particular Industry.

2) Machinery-Kind of machinery required.
3) Raw Material- Availability of raw material of a particular industry.
4) Competition- level of competition in the sector.
5) Distribution Chain- The kind of distribution channel that will be used for the sector.
6) Prices- Factors that needs consideration wile deciding the prices
7) Land- Availability of the land cost of the land.( Land is available at various Industrial
areas in Bikaner these include RIICO Industrial area, NH 11 Jaipur highway )
8) Organized and un-organized sector.
9) Target customers- Industrial market (B2B) or Consumer market.

After evaluations of the following issues picture will be clear regarding the competition in
particular sector, investment required for that industry supply of raw material etc. With
consideration to the resources available we can judge which Industry is best to enter in. Also
various problems erg- monopoly of supplies for various industries etc can be identified. Most
important thing is after this analysis the level of utilization of current distribution channel of
other players can be easily judged.
So with this study the final conclusion we will prioritize the four industries as which one is best
investing in.

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 TABLE OF CONTENTS

TABLE OF CONTENTS................................................................................................................5

OBJECTIVE OF THE STUDY.......................................................................................................6

THIS STUDY INCLUDES THE FOLLOWING SECTORS WHICH ARE AS FOLLOWS:......6

SANITARY WARE INDUSTRY..............................................................................................6

WOOLEN MILL.......................................................................................................................10
BHUJIA INDUSTRY BIKANER (MINI PLANT)..................................................................12
POP INDUSTRY BIKANER....................................................................................................15
COST BENEFIT ANALYSIS (SANITARY WARE)..................................................................16

COST BENEFIT ANALYSIS (WOOLEN MILL).......................................................................17

COST BENEFIT ANALYSIS (BHUJIA).....................................................................................18

COST BENEFIT ANALYSIS (POP)............................................................................................19

COMPARATIVE ANALYSIS.....................................................................................................20

CONCLUSION.............................................................................................................................21

LIMITATIONS OF THE STUDY................................................................................................22

REFRENCES................................................................................................................................23

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 OBJECTIVE OF THE STUDY
Economic & opportunity analysis of manufacturing sector in Bikaner

THIS STUDY INCLUDES THE FOLLOWING SECTORS WHICH ARE AS

FOLLOWS:

SANITARY WARE INDUSTRY

Investment Required-
Approx 176*176 sq. Feet Land Required (Land on Raisar road Bikaner & RICCO
Industrial area) & is available in ample.
Machinery Required-
a) Automatic plant
o German Technology costing approx 1 Crore.
o Fully Automatic.
o Approx 15 to 20 Labor required to handle the meachiary.

b) Semi Automatic plan

Manual loading unloading required along with other tasks.
Costing approx 50 lakhs.
70 to 90 labors required.

Machinery Required
• Turner
• Ball Meal
• Casting Deptt
• Module s
• Glaze Room Finishing Deptt.

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 Raw Material
• Kolayat Clay(In Bikaner District) & Thangarh Clay(Gujarat)
• Zinc(Gujarat)
• Zirconium(Gujarat)
• Salphoric acids(Biwar)
• Cobalt(Delhi)
• China Clay(Delhi)
No monopoly of any supplies in any of the above raw materials.

Total Costing of plant

Land Approx 20 lakh
Building 10 Lakh
Machinery 50 Lakh (Semi Automatic) & 1 Crore (Automatic)
Raw material initially around 15 to twenty Lakhs.
Labor required.
Total Rs. 1.10 Cr (Semi Automatic Plant) & 1.6 Cr (Automatic Plant)

Alternative arrangement
• Consuming less land & labor
• Shutter arrangement.
• In this capacity is limited along with the space.
• Functional only for small time duration

Decision of Price
1) Raw Material prices
2) Manufacturing Unit price(Automatic or Semi Automatic)

Target Customers
• B2B Selling takes place.

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 • No direct contact between customer & Company.
• Personal Selling takes place.
Distribution Channel being followed

• Raw materials are sourced from Bikaner, Gujarat, Biawar, and New Delhi. Main factor is
Kolayat clay available at cheap rates.
• Manufacturing plants – approximately 18 plants are there in Bikaner, situated in RIICO
industrial area.
• Supply throughout India but majorly to Punjab, Haryana, West Bengal, and Delhi &
Orissa.
• Supply chain has distributers in all regions, which further supplies to retailers.
• All manufacturing Units fall under category of PVT LTD of LTD Company. So it is
totally an organized sector.

Profit Margin

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 • Approx 10 to 15 % from manufacturers to distributers
• Approx 10-12 % from Distributers to retailers
• Up to 20 % from retailers to customers

Competition
Low degree of competition among the Industries present in Bikaner, but tough competition from
manufacturing units present in Gujarat.

INSULATORS
• This is one of the diversification which has taken place.
• Most of the sanitary ware Industry in Bikaner are now into it.
• Arrangement for manufacturing remains same only the mould which is used changes.
• Selling is mostly done to government on tender & on bidding basis.
• Demand as well as profit margin is high.
• Supplied throughout India.

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 WOOLEN MILL

Investment Required: Land 100*100 sq feet.

Machinery
Washing
Waiving
Thread
Dying

Approx Capital required : 1 to 1.10 Crore Including

Raw Material
• Raw Material is raw wool purchased from Bikaner Woolen Association or Ganganagar.

Manufacturing Process

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Supply Chain

• Supply mainly to Mirzapur, Badhoi, and Hydrabad.

• At these places the thread prepared is converted to woolen carpets and then exported to
US.
• Due to rescission this sector is badly hit and 70% of the manufacturing plants have closed
production.
• Organized sector falls in Private Limited & limited Companies.

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 BHUJIA INDUSTRY BIKANER (MINI PLANT)

Investment Required
Land required minimum 34*34 Feet
• 1 godawn12*12 feet
• 1 Raw material Room 12*12 Feet
• Packaging Room 10* 20 Feet
• Ready products 10*10 feet

Machinery Required
• Flourier
• Mini Grinder
• Centrifugal machine
• Diesel Stove & other containers

Total Investment 5 to 5.5 Lakh.

Above is the requirement for a Mini plant, if the capacity need to be increased then all the above
can be replicated.

Raw Material:
Sourced from local suppliers
• Pulses • Oil
• Spices • Water

Manufacturing Process
Pulses 100 Kg. 555 gm other Spices
6 Kg Salt 6 Kg oil
1.2 Kg red Chili

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 • Above are the in gradients which are mixed together in raw
material room
• Then send to production room where it is mixed with water and
finally fried in oil.
• Quality of bhujai depends totally on oil and the quality of
ingadients used; according to these the price is fixed.
• After the production the bhujia is moved the packaging room
where it is first kept under fan so that it becomes cool n then it is
packed.

PACKAGING OF BHUJIA IS OF TWO TYPES

1) Manual Packaging
In this type of packing the bhujias are manually filled in polybags,
weighed & then packed.
Labor required in this process totally depends on the production.

2) Automatic packing
In this type of packaging the bhujias are directly fed into the
packets which are then sealed in the ongoing process, the quantity
i.e. 100gms, 250gms which is fixed and we get the packaged
products, ready to supply.

Distribution
• District wise distribution in Rajasthan.
• Separate distributers for Highways specially 100 gms & 250 gms
pouches.

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Factors that need consideration while price is decided
• Prices of pulses used
• Packaging Material
• Competition
• Location
• Target consumers

Main Consumers
Biakners Local population
Supply throughout Rajasthan as well as India.

Competition
Level of competition for local market is high because of the presence of
the unorganized market.

Survey of KEM road Bikaner

• Number of Shops 15
• Target group is same
• Price range (Between 60 to 90 Rs. Per kg) n quality is
approximately same.
• Differentiating factor is the brand name which they have
developed from their presence over the years.
• Customers are mostly the local people & from Bikaner district or
at most from Rajasthan.

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 POP INDUSTRY BIKANER

Investment Required: Land 100* 100 feet approx

Machinery Required
• Blower • Filterer
• Crusher

Approx Total Cost : 50 Lakh.

Raw Material : Gypsum (Jamsar)

Manufacturing Process
• Gypsum baked in Blower
 Blower can be using diesel, wood (Supply from
Ganganagar or Gujarat) as fuel.
• Pieces crushed into fine particles using Crushers
• Filtering takes place.

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 • After filtering the products are divided into Super Fine, Fine &
Medium quality.
• 24 hrs running of blower , production 3 to 3.5 ton of POP

Customer
• Mainly used in POP Wash (As a paint in Buildings)
• Hospitals.
• Supply throughout India specially Punjab & Gujarat.

Competition
• Sector is organized as all the players are registered
• Approx 15- 18 manufacturing plants are there in Bikaner region
• Selling takes place in quantity of Quintals & Tones.

COST BENEFIT ANALYSIS (SANITARY WARE)

1. INVESTMENT

Land minimum requirement is 176 *176 sq.ft.

Investment 40 lakh – 1 crores (depending upon the type of manufacturing
plant)
Approximate total investment 1 to 1.6 crore
Availability of land- Land is though available but prices are sky high (e.g.
Jaipur Highway, RIICO Industrial area)

2. RAW MATERIAL
High availability (from KOLAYAT)

3. MACHINERY

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Technical skills required for installation as well as usage
Machinery needs to be transported from Ghaziabad or Delhi or NCR
region

4. Price decided on raw material and type of manufacturing unit, B2B

selling.

5. Setting up of new supply chain is very difficult because both at

distributer and retailer ends are already in tie-ups with earlier
existing manufacturing firms.

6. Profit margin is good and also competition is low.

NOTE: This is a good option to enter into, especially the Insulator

sector is highly growing, but investment required in very high.
In sanitary wares growth is low as compared to Insulator industry as
government is a big consumer of the same.

COST BENEFIT ANALYSIS (WOOLEN MILL)

1. INVESTMENT:
Land minimum requirement is 100*100 sq.ft.
Investment Rs. 50 lakh
Approximate total investment 1 to 1.2 crore
Availability of land- Land is though available but prices are sky high (e.g.
Jaipur Highway, RIICO Industrial area)

2. RAW MATERIAL
Easily available from Bikaner Woolen Mill Association.

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 3. MACHINERY
Semi skilled laborers are required to operate the machines.
Machines are easily available from the local markets.

4. Price decided on raw material.

5. Supply chain is more or less is same for all the units because it is
an export oriented business.

6. Profit margin is good and also competition is low.

Note: Currently it is not a successful industry as it was hit by

recession most of the manufacturing plants have closed down, so
keeping in view the investment required, this option should be given
least priority.

COST BENEFIT ANALYSIS (BHUJIA)

1. INVESTMENT:
Land minimum requirement is 34*34 sq.ft.
Approximate total investment 5 Lakh
Availability of land- Ample of Land is available (As requirement is low)

2. RAW MATERIAL
Easily available from local market.

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 3. MACHINERY
Machines are easily available from the local markets.

4. Price decided on raw material (pulses as their rates keep on

fluctuating), location packaging.

5. Supply chain is not required for local market of Bikaner 5 to 10

labors are required for delivers (Totally depends upon the target
customers).

6. Profit margin is good and also competition is low.

Note: One of the best option to enter into as investment is low, market
is growing, and demand & consumption is high.
With Bhujias various other varieties are also produced which are
high profit earning.
Although competition is high but growth is good, if positioned
properly can give very high output.

COST BENEFIT ANALYSIS (POP)

1. INVESTMENT
Land minimum requirement is 100*100 sq.ft.
Approximate total investment 50 Lakh
Availability of land- Land is though available but prices are sky high (e.g.
Jaipur Highway, RIICO Industrial area)

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 2. RAW MATERIAL
Easily available from nearby Market (Gypsum from Jamsar).

3. MACHINERY
Machines are easily available from the local markets, still at some
places tires are used to bake the raw material, therefore machinery
required also varies

4. Price decision depends on the type of customer. As supply takes

place in bulk therefore price is for quintals or tones of the product.

5. Well organized Supply chain is required, personal selling plays a

very important role.

6. Profit margin is good and also competition is low.

Note: This is also a good option to enter into as the Demand &
consumption is high both for the consumer market as well as b2b
market.
Demand continuously increasing as POP has been now a day’s used in
finishing of buildings etc.

COMPARATIVE ANALYSIS

Sanitary Woolen Bhujia POP

Investment required High High Low Moderate
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Raw Easy from From local Local Nearby
Material(Availability nearby Market(20- market(2-5 areas(approx
) areas(approx 30 kms) kms) 100 kms)
between 100-
200 kms)
Machinery Skilled Semi Unskilled Semi Skilled
Skilled
Price Decision Raw Material Raw Raw Type of
& type of Material Material customer &
manufacturing (Pulses),
unit Location,
Packaging.
Customers B2B B2B B2B & B2B & B2C
B2C
Profit Margin High Moderate High High
Competition Low Low High High
Growth Moderate Low High High

CONCLUSION

• Best option will be to enter into bhujia sector as investment is low

as well as growth rate demand as well as consumption in local
market is very high.

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• POP is the second best option keeping in view the investment and
the level of growth. This market is growing as the demand has
increased in finishing of homes & buildings.

LIMITATIONS OF THE STUDY

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 Location of the study is restricted to geographic location of
Bikaner.
 Evaluation will be on four types of firms’ sanitary ware, woolen
mills, plaster of Paris (POP) and Bhujia.

REFRENCES

a. http://www.bikanertradeindustryinfo.com/main.htm
b. http://www.realbikaner.com/industry/index.html

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