Vous êtes sur la page 1sur 16

Suddh Purity in every drop

INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT IILM GRADUATE SCHOOL OF MANAGEMENT

PGDM GENERAL 2010-2012 SECTION A

Project Report on Mineral Water


Submitted To

Prof. Ritesh Srivastava


Submitted By
Abhishek Tripathi Amrita Paramanik Antara Mukherjee Radhika Bharadwaj Sabyasachi Panda Vishal Goyal-Group leader

Suddh Purity in every drop

INTRODUCTION
Mineral water is water containing minerals or other dissolved substances that alter its taste or give it therapeutic value, generally obtained from a naturally occurring mineral spring or source. Dissolved substances in the water may include various salts and sulphur compounds. It is drinking water packaged in plastic or glass containers. Water packaged in new Polyethylene terepthalate bottles and sold retail is the most common. Another method of uses large high density polyethylene or polycarbonate plastic bottles, often used in water coolers There are more than 3,000 brands of mineral water commercially available worldwide. The volume of bottled water grew by 8.1% in 2006 to 115,393.5 million liters. In 2011, the market is forecast to have a value of $86,421.2 million, an increase of 41.8% since 2006. In 2011, the market is forecast to have a volume of 174,286.6 million liters, an increase of 51% since 2006. Corporate control over water and water distribution in India is growing rapidly. The packaged water business is worth Rs7, 990 and is growing at a huge 49-59% annually. Around 7,699 bottling plants and 799 brands of packaged water across the country are battling over the market. According to UNDP estimates, around 7.6 billion people lack access to clean drinking water. Today, most of the people worldwide are suffering from waterborne disease than any other ailment. Some 4,010 children die of such disease every day. Due to rising awareness of the people, the mineral water industry is getting business. As globalisation opens up, opportunities for private players, investing in water or manipulating water scarcity makes increasingly good business sense for corporation. Over 799 brands are battling over the bottled water market, hard-selling their products in every way possible- better margins to dealers, aggressive advertisements, and catchy slogans.

Suddh Purity in every drop

ACKNOWLEDGEMENT
If a man waited for the time When he could do things best He would have done nothing

Written words have an unfortunate tendency to reduce genuine gratitude into silted formality. However, we feel that this is the only way to record ones gratitude. When all work is done, it is a pleasant job to thank all those who were at every instant supervising us and ensure the completion of the decoded work. The successful completion of our project can be attributed to the combined efforts made by us and the contribution made in one form or other by individuals we acknowledge by here. We are extremely thankful to our project guide Prof. Ritesh Srivastava for being with us right from the beginning of our project and guiding us at every step.

Suddh
Purity in every drop
Suddhs vision is to achieve global leadership in providing high quality products to our clients in selected horizontal and vertical segments, by combining technology & exper tise and a commitment to long-term client relationship.

Our mission
We are in the business to serve the customer. He is the most important person. He is the only one who pays. He deserves the best quality and presentation at a worth of the price. We must have world class quality, at the lowest production & distribution cost. This will make us an unbeatable leader, and will have satisfied loyal customers. It is our commitment to offer every Indian pure & clean drinking water. suddh is put through multiple stages of purification, ozonised & finally packed for consumption. . Rigorous R&D & stringent quality controls has made us a market leader in the bottled water segment. Strict hygiene conditions are maintained in all plants.

Our values
Integrity, Leadership, Teamwork, Co-operation, Quality, Passion, Openness & Transparency

Our Objectives
Following are the objectives of our company

To earn a reputation for being an innovative, trend setting brand. To be positioned as a lifestyle oriented, vibrant and contemporary Product Build strong relationships with our suppliers to secure a preferential Supply of the best quality products Insisting on customer satisfaction in all areas of our organization to Attribute the retention of an ever increasing customer base. Gain the maximum share in the market Establish the position of market leader in 3 years

Suddh Purity in every drop

Cost

Analysis

W e have taken up setting up a water purifier plant along with bottling and labelling as our business plan. So on backdrop of this idea we would introduce the concept of various types of costs involved in the above mentioned process. Cost is the value of money that has been used up to produce something and hence is not available for use anymore. The most important part of the plant is cost effectiveness. It is going to give us an edge over others in the market. Many essential features are planned in such a way that the overall cost is reduced as well as quality of the final product is also not compromised. The whole cost of production may be segregated into the following elements: Machines/ Equipment Cost Cost of Raw Material Packing Cost Operating Cost Cost of Manpower

Apart from Machines/ Equipment Cost, all may be seen as floating cost elements. We are targeting at keeping it to less than 5000K. Our main target is to reduce as much of Operating Cost (Electrical Load etc.) and Manpower as possible. The Raw Material and packaging provisions would be of better quality. If we make a section wise assessment of Equipment cost, Bottle Manufacturing Machinery would hold the highest value followed by Purification and Bottling. The overall cost is shown in details in later sections. The Cost of Raw material can be greatly reduced by careful selection of plant premises. Better the quality of water source, lesser is the need of purification and hence lesser cost. It is also critical in maintaining the continuity of the plant. Packing Cost can be regulated well by having a crude proportion of machine and manual work. This is one section where cost can be most effectively regulated. But high emphasis is to be given towards the quality, because this will be the only stage section whose outcome would connect directly with the consumers. Operation Cost such as electricity charges would play a rather significant role in the overall product costing.

Suddh Purity in every drop

Cost of Manpower is more relevant once the whole plant set up is complete. It may be regarded as a floating cost. It all depends upon the requirements and functioning of the plant.

Apart from these, there are many post release cost such as transportation, marketing, distribution etc. which will determine the costing of our final product. But, the main feature of the plant would be the quality centric cost of our product. In order to reach out to the masses amidst stiff competition, the cost effectiveness would play the major part. The above mentioned segregation of costing with its technicalities is explained in detail in later sections.

PROCESS FLOW
The plant (SUDDH) has 5 components: 1] Purification: Water received from the external source is passed through the purification plant and stored in a stainless steel tank. Thereafter it is fed to the bottling section - and continues operation achieved. 2] Bottle Manufacturing: Pet performs are blown into bottles and a sufficient number of bottles; say 1000 nos., kept ready while the machine continues to produce more during the shift, when the bottling has been started. 3] Rinsing - Filling - Capping: The bottles are fed into the machine which automatically rinses, fills and screws the cap on it. Caps are stamped with the date of manufacture and expiry before being put into the hopper for screwing on to the bottle. 4] Labelling: We are proposing use of heat shrink labels and tamper evident heat shrink sleeve on the neck of each bottle. The label and the neck sleeve are to be manually put on the bottles which will then pass through the shrink tunnels and onto packing conveyer. Expiry date and batch number could be printed on labels or caps prior to their being put on the bottles. 5] Heat Shrinking: The bottles are passed through heat shrink tunnel so that the label and neck sleeve, shrink and stick to the bottles. 6] Final Packing: This could be in cartons - done manually - and no machines have been provided for it.
Suddh Purity in every drop

Equipments involved:
The equipments involved can be broadly categorised into 3 1) Purification section 2) Bottling section 3) Packaging and labelling section

RAW MATERIAL

The water source is of critical importance and the continuity of the plant would depend upon it. Apart from water following items are required and can be supplied by us. 1] Perform - for blowing into bottles 2] Caps for the bottles 3] Labels 4] Neck sleeves 5] Cartons for final packing.

COSTS
The various cost elements involved are: 1] Raw material 2] Packing cost 3] Operating cost - Electricity 4] Manpower

ELECTRICAL LOAD
The total Electricity load would be about 2.0 KW

MANPOWER
Number of people required to operate various machines is 1] Bottling - 1 nos. 2] Labelling - 2 nos. 3] Bottle making - 2 nos. 4] Printing - 1 no. 5] Packing - 2 nos. 6] Miscellaneous - 2 nos. 7] Administration-4
Suddh Purity in every drop

MACHINES / EQUIPMENT OFFERED


the various machines and equipment being offered by us are explicitly listed here. This does not include miscellaneous items like pipes, electrical etc., which are specific to the site and each project.

Purification Section
Flow rate: 1000 lit / hour Raw water quality (assumed) : 1000 ppm as TDS Description Alum dozer 3 lit/hr dosage 2 nos. pump (1W+1S) (SS) Activated Carbon Filter Quantity 1 1 1

Flow Rate : 2000 lit/hr. MOC : SS 304 Pressure Sand Filter Flow Rate : 2000 lit/hr. MOC : SS 304 Softener Reverse Osmosis System Permeate Flow: 500 lit/hr. Consist of : 5 Micron Filter SS-304 PP H.P. Pump with 3 HP Motor Membrane - 4 nos. Pressure Vessel (SS-316) - 4 nos. Instruments & panel Ozone Generator Capacity - 1 gm/hr. Ozone Dissolution Col. MOC : SS-316 Flow Rate : 1000 lit/hr. UV Disinfectant Flow Rate : 1000 lit/hr. Storage tank for Pure Water Capacity: 1000 ltr. SS-316 Total Cost Rs 13, 72,000/Suddh Purity in every drop

1 1

1 1

f the quality of the raw water is good it may not be necessary to use some of the above equipment and consequently the cost can come down. Tanks for Raw water and alum dosing are to be provided by the client. The output water purification would be in line with WHO specifications - however final results depend on input water quality.

Bottle Manufacturing Section


To achieve 500 nos. bottles per hour production. Description Stretch Blowing Machine: Refrigeration Unit : (Chillers) Air Compressor : Mould sets : Approx. Spares for 1 Year Quantity 2 2 2 2 2

Total Cost Rs 19, 40,000/It is possible that the air compressor be bought locally. We are in a position to offer automatic moulding machines also. However that would result in higher investment hence is not recommended at the initial stages.

Bottling Section:
This section receives the empty bottles, rinses them, fills and caps them. Description Stainless Steel Conveyor: Rinsing, Filling, Capping: Quantity 1 1

Total cost Rs 13, 32,000/Suddh Purity in every drop

LABELLING & PACKING SECTION


Description Shrink Tunnel: Printing Machine (for mfg. Date & batch nos.) Total cost Rs 1, 80,000/Quantity 1 1

TOTAL COST OF THE MACHINERY OFFERED


1. Purification section: 13, 72,000/- (expected life 10 year) 2. Bottle Manufacturing section: 19, 40,000/-(expected life 10 year) 3. Bottling section: 13, 32,000/- (expected life 10 year) 4. Labelling & packaging section: 1, 80,000/-(expected life 10 year) Total -- 48,28,000

Per year calculation of fixed cost:Item Purification section Bottle manufacturing Price 1372000.00 1940000.00 Expected life 10 year@10% 10 year@10% Per year cost 137200.00 194000.00

section Bottling section Labelling & packaging 13,32,000.00 180000.00 10 year@10% 10 year@10% 133200.00 18000.00

COST SHEET Cost sheet is a statement, which shows various components of total cost of a product. It classifies and analyses the components of cost of a product. Previous periods data is given in the cost sheet for comparative study. It is a statement which shows per unit cost in addition to Total Cost. Selling price is ascertained with the help of cost sheet. The details of total cost presented in the form of a statement is termed as Cost sheet
Suddh Purity in every drop

Shudh enterprise Cost sheet for the period 2010

Quantity manufactured:- 500000 Quantity Sold:5000000

Total Cost

Cost per unit

1) Cost of raw Materials Consumed


2) Machinery purchased for a)purification section b)bottling section C) manufacturing bottles c)packaging section 3)Prime cost (1+2)

1040000.0 0 137200.00 194000.00 133200.00 18000.00 1522400.00

2.08
.275

.388 .266 .036

3.044

4) Factory Over Heads( 10000/month)*12 5)Electricity consumed (35000/month)*12 6) Factory rent ( 50000/month)*12

120000.00

.24 .840 1.2


.

420000.0 0 600000.0 0 468000.0 0 313040 0.00 312000.0 0 24000.00 346640 0.00

7) salaries to 10 workers ( Rs 150 /day )*12


8)lab expenses 9) Gross factory cost (3+4+5+6+7+8) Office and Administration Over Heads 10) Office salaries staff 11) Other administrator charges ( 2000/month)* 12 12)office cost

.936 6.26 08 .624


.048 6.9328

13) Selling and Distribution Over Heads.

14)Advertisement expenses 15)expense of delivery vans 16)packaging expenses


17)commission of sales agents ( .20/bottle) 18)Total Cost Profit Sales

.10 .10 .16 1.00 7.3928

50000.00 50000.00 80000.00 500000.0 0 369640 0.00 1303600. 00 500000 0.00

2.6072 10.00

Suddh Purity in every drop

Cost sheet analysis


The maximum amount allocated to us is between fifty lakh to one crore rupees. So we will try to cover up all the costs and expenses within this allocated amount. Profit for 5 lakhs bottle is Rs.653600. According to us this initially this is sufficient profit. As we move further for more production our cost will decrease and we can earn more profit. Our total cost is 4346400.00 for 500000 bottles. We will sell this bottle for Rs 10.

Competitors survey

BISLERI COST Rs 4-5/per bottle

AQUAFINA Rs.3-4/per bottle

KINLEY Rs2.85-4.25/ per bottle

PROFIT DISTRIBUTION NETWORK

33.3% Production TO Plant warehouse TO Depot warehouse TO Distribution warehouse TO Retail Stock TO Consumer

25% to 30% PRIMARY DISTRIBUTION Producer TO distributor SECONDARY DISTRIBUTION Distributor TO retailer TO consumer

17% to 20% Distribution network


Direct distribution Indirect distribution Merchandising

SELLING QUANTITY

20 million bottles per month

Annually consumption 1.7 billion liter

stands at 16.8 million bottles a month

SELLING PRICE

1litre-Rs.10

500ML-Rs.12-14

1litre-Rs.12

Suddh Purity in every drop

SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective

Strengths: We are providing high quality Mineral Water The price per quality is very attractive We have effective advertising plan

Weakness: New brand in the market

Opportunities: Low & a bit high income group

Threats: Strong distribution channel of competitors Strong Positioning of competitors

Suddh Purity in every drop

Conclusion

We have successfully developed the plan. If we look at the market it is full of competition. A large portion of the population is attracted by those products which have already positioned in their minds. In this market scenario we launched the Mineral Water that is Suddh. The main objective is to create the awareness of our product and gain some share in the market. The budget was up to one crore rupees. We have allocated this budget into different mediums. We have conducted a survey and have positive feed back about our product. When we gave the free samples,the marketing campaign was successful. We also took a stock of feedback from our retailers about our product. They gave us positive response when our sales started . When they started declining they gave all the review of the customer this was very helpful for us to remove our weakness of our product and major part of evaluation for advertising.