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BUSINESS PLAN:

SPRAN Fertilizers

Presented by:

1
Sukanya Siddhartha Mudoi
Alkashif Ikbal Ahmed
Pallav Jyoti Gogoi
Rituraj Gohain
Centre For Management Studies (MBA 2nd SEM) Nofissa Islam
WHY VERMI COMPOSE?
Easy to produce

Low maintenance cost

More productive
than any other
fertilizer.

Purely organic.
2
Centre For Management Studies
(MBA 2nd SEM)
EXECUTIVE SUMMARY:
Company Name:- SPRAN Fertilizers
Product:- Vermi compost Fertilizer
Clients:- Tea estates, Nurseries, Gardening
agencies, Public Agencies, Households etc.
Number of Promoters:- 5
Target Market:- Assam.

3
Centre For Management Studies
(MBA 2nd SEM)
BUSINESS PLAN AT A
GLANCE:-
Name of the Unit SPRAN Fertilizers
Registered Office College Road Chabua, B-ward. Dibrugarh, Assam
Pin no 786184
Location of the Unit College Road Chabua, B-ward. Dibrugarh, Assam
Pin no 786184
Form of Organization Partnership Firm
Name of Owner Pallab Jyoti Gogoi.
Rituraj Gohain.
Alkashif Ikbal Ahmed.
Nofissa Islam.
Sukanya Mudoi.
Name of Product Vermi Compost Fertilizer
Size of the Unit Small Scale
Cost of Project 18 Lakhs (Approx.)
4
Means of Finance IDBI Bank Loan
Centre For Management Studies
(MBA 2nd SEM)
ORGANIZATIONAL
STRUCTURE:-
BOARD OF DIRECTORS

MANAGER MANAGER MANAGER MANAGER

(OPERATION) (FINANCE) (PERSONNEL) (MARKETING)

MARKETING
SUPERVISOR ACCOUNTANT CUM SALES
EXECUTIVE

WORKERS 5

Centre For Management Studies


(MBA 2nd SEM)
COMPANY PROFILE:-
Vision
To be a leading national enterprise with global
aspirations, effectively pursuing multiple growth
opportunities, maximizing returns to the stakeholders,
remaining socially and ethically responsible.

Mission
To provide our customers with premium quality
products in a safe, reliable, efficient and
environmentally sound manner, deliver exceptional
services and customer support, maximizing returns to
the shareholders through core business and
diversification. 6

Centre For Management Studies


(MBA 2nd SEM)
SWOT ANALYSIS:-
Strengths
It is eco-friendly in nature

Purely organic

Highly productive

Weakness
Vulnerable in nature

Weather dependent

Manufacturing Process

Centre For Management Studies


(MBA 2nd SEM)
CONTD
Opportunities
Less competitors

People are more in support of organic fertilizer

The by product is more efficient. i.e. Vermi wash.

High rate of production in a short period of time

.
Threats
People are less aware.

Most of the tea estates are producing its own


Vermi compost.
8

Centre For Management Studies


(MBA 2nd SEM)
PRODUCT PROFILE:-
Products Range
Vermi compost fertilizer in dry form.

Vermi compost wash.

Vermi worms, African red worms.

Product Quality
Purely organic.

Price Mix
Vermi compost fertilizer- Rs 12 per kg

Vermi compost wash- Rs 12 per litre


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Vermi worms- Rs 2 each.
Centre For Management Studies
(MBA 2nd SEM)
CONTD

Promotion Strategies:-

Advertisement in newspapers.

Awareness camps in rural areas.

Hoardings & Banners.

Social cause events.

10
CONTD
Distribution Strategies:

B2C Model B2B MODEL

Manufacturer
Manufacturer

Distributor
Corporate Selling
Dealer

Retailer

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Customer
Centre For Management Studies
(MBA 2nd SEM)
MANUFACTURING
PROCESS:-
Vermicomposting unit should be in a cool, moist
and shady site.
Cow dung and chopped dried leafy materials are
mixed in the proportion of 3:1 and are kept for
partial decomposition for 15 to 20 days.
A layer of 15 to 20 cm of chopped dried leaves
grasses should be kept as bedding material at the
bottom of the bed.
Beds of partially decomposed material of size
6x2x2 feet should be made.
Each bed should contain 1.5 to 2.0q of raw
material and the number of beds can be
increased as per raw materials availability and 12

requirement. Centre For Management Studies


(MBA 2nd SEM)`
CONTD
Red earthworm (1500-2000) should be released
on the upper layer of bed.
Water should be sprinkled after the release of
worms.
Beds should be kept moist by sprinkling of water
(daily) and by covering with gunny bags or
polythene.
Beds should be turned once after 30 days for
maintaining aeration and proper decomposition.
Compost gets ready in 40-50 days.

The finished product is th of the raw materials


used. 13

Centre For Management Studies


(MBA 2nd SEM)
CONTD
Preventive measures
The floor of the unit should be compact to prevent
earthworms migration into the soil.

15 to 20 days old cow dung should be used to avoid excess


heat.

The organic wastes should be free from plastic, chemicals,


pesticides and metals etc.

Aeration should be maintained for proper growth and


multiplication of earthworms.

Optimum moisture level (30-40) % should be maintained.

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18-25 degree centigrade temperature should be maintained
for proper decomposition. Centre For Management Studies
(MBA 2nd SEM)
OPERATION PLAN &
LAYOUT:-
Operation plan:-
Location:- College Road Chabua, B-ward.
Dibrugarh, Assam,

Pin no 786184
Size of land:- 14400 sq. ft. approx.
Approximate project cost:- Rs. 18 Lakhs
Working Hours:- 9 hours a day.
Financial help:- IDBI Bank
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Number of employees required:- 5-10
Centre For Management Studies
(MBA 2nd SEM)
PLANT LAYOUT:-

16

Centre For Management Studies


(MBA 2nd SEM)
STAFF & LABOUR:-
No. Staff and Labour Number
1. Workers
Skilled 1
Unskilled 5

2. Supervisor 1
3. Accountant 1
4. Watchman 1 17

5. Salesman 1Centre For Management Studies


(MBA 2nd SEM)
FINANCIAL DETAILS:-

Total Fixed
Assets:-
NO. PARTICULAR AMOUNT
1. Land (Security Deposit) 2,00,000
2. Building 3,00,000
3. Vehicle 10,43,000
4. Plant & Machinery 80,000

5. Furniture 50,000
6. Computer 30,000
7. Current Assets 20,000
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Total 17,23,000
Centre For Management Studies
(MBA 2nd SEM)
COST OF PRODUCTION:-
(RAW MATERIALS)

Particulars Rate Req. per Req. per


batch year

Worms 10,000 (per Kg) 10,000 40,000

Cow Dung 700 (per truck) 50,000 2,00,000

Banana Plant 30 (per plant) 6,000

Miscellaneous 2,000 10,000

Total (Rs.) 62,000 2,56,000

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Centre For Management Studies


(MBA 2nd SEM)
STAFF & LABOUR SALARY:-
Particulars No. Rate Per Per Year
Month
Factory Staf
Skilled 1 4,000 4,000 48,000
Unskilled 5 2,500 12,500 1,50,000
Supervisor 1 8,000 8,000 96,000

Salesman 1 10,000 10,000 1,20,000


Accountant 1 8,000 8,000 96,000
Watchman 1 5,000 5,000 60,000

Total 42,500 5,10,000 20

Centre For Management Studies


(MBA 2nd SEM)
Other expenses and utility:-
Sl. No. Particulars Per Month/Batch Per Year
1. Electricity 5,000 60,000
2. Water Charges 1,500 18,000
3. Stationery 500 6,000
4. Telephone charges 1,000 12,000
5. Transport
Inward 3,000 36,000
Outward 5,000 60,000
6. Packing 2,500 30,000
7. Miscellaneous expenses 10,000
8. Legal fees 10,000
9. Rent (Land) 6,000 72,000
10. Interest (Loan & Capital) 2,78,828 21

10. Advertising 10,000


COST OF PRODUCTION:-
Sl. Particulars Per Month Per year
No.
1. Raw Material 21,333 2,56,000
2. Staf & Labour 42,500 5,10,000
3. Other Expenses 18,250 2,52,000

Total WorkingTotal
Capital:- 10,18,000

Sl. Particulars Per Month Per year


No.
1. Raw Material 21,333 2,56,000
2. Staf & Labour 42,500 5,10,000
3. Other Expenses 18,250 2,52,000
Total 10,18,000 22

Centre For Management Studies


(MBA 2nd SEM)
TOTAL PROJECT FUND:-
Sl. Particulars Amount
No.
1. Fixed Cost 17,23,000
2. Working Capital (2 months) 1,64,166
Total 18,87,166
Sources Of
Finance:-
Sl. No. Particulars Rate Amount
1. Own Capital 5% 10,00,000
2. Borrowed Capital
IDBI 10.5% 8,87,166
Total 18,87,166
23
Centre For Management Studies
(MBA 2nd SEM)
INTEREST ON CAPITAL:-
Sl. No. Particulars Rate Amount
1. Own Capital 5% 50,000
2. Borrowed Capital
IDBI 10.5% 2,28,828

2,78,828
Depreciation:-
No. Particulars Value Amount
1. Building (10%) 3,00,000 30,000
2. Plant & Machinery 80,000 8,000
(10%)
3. Vehicle (15%) 10,43,000 1,56,450
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4. Computer (10%) 30,000 3,000
5. Furniture(5%) 50,000 2,500
ANNUAL COST OF
PRODUCTION:-

Sl. No. Particulars Amount


1. Raw Material 2,56,000
2. Recurring Expenses 7,62,000
3. Depreciation 1,99,950
4. Interest on Investment 2,78,828
Total 14,96,778

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Centre For Management Studies
(MBA 2nd SEM)
SALES FORECAST:-
Products Quantity Amount
Worms (Rs 2 each) 25,000 50,000
Vermi Wash 9000 Ltr 1,08,000
(Rs 12 per litre)
Vermi Compose 1,50,000 Kilos 18,00,000
(Rs 12 per Kilo)
TOTAL 19,58,000

Year Amount
1st Year 19,58,000
2nd Year 26,02,000
3rd Year 32,68,000 26
Centre For Management Studies
(MBA 2nd SEM)
SCHEDULE OF VARIABLE
COST & FIXED COST:-
Particulars Variable Cost Fixed Cost
Amount Amount
Depreciation - 1,99,950
Interest on Capital - 50,000
Salary 3,45,000 1,65,000
Other Expenses 1,98,000 54000
Raw Materials 2,56,000 -
7,99,000
Variable Cost/ Unit = Rs 5.02/ unit 4,68,950
Fixed Cost/Unit= Rs 2.94/unit
Contribution= Rs 7.29/unit 27

Centre For Management Studies


(MBA 2nd SEM)
PROFIT ANALYSIS:-
BEP (in Units) = 64,328 Kilos
BEP (in Rupees) = Rs 5,12,050
Profit Volume Ratio= 73.16%
Gross Profit Ratio= 83.55%
Net Profit Ratio=24.98%

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Projected Profit & Loss Statement for 1st Year
To Purchases 256,000 By Sales 1,958,000
To Carriage Inward 36,000
To Packaging 30,000
To Gross Profit 1,636,000

To Salaries 510,000 By Gross Profit 1,636,000
To Miscellaneous Expenses 10,000 By Indirect Income 100,000
To Electricity Charges 60,000
To Telephone Charges 12,000
To Water Supply 18,000
To Stationary 6,000
To Carriage Outward 60,000
To Legal Expense 10,000
To Advertisement 10,000
To Rent (LAND) 72,000
To Interest on Loan & Capital 278,828
To Depreciation
Building 30,000
Machineries 8,000
Computer 3,000
Furnitures 2,500 29
Vehicle 156,450
To NET Profit 489,222
TOTAL 1,736,000 TOTAL 1,736,000
Projected Balance Sheet for 1st Year(In Rupees)
Liabilities Rupees Assets Rupees
Capital 1,000,000 Building 300,000
Add: NET Profit 489,222 1,489,222 Less: Depreciation 30,000 270,000

Bank Loan 887,166 Land (Security Deposit) 200,000

Machinery 80,000
Less: Depreciation 8,000 72,000

Furniture 50,000
Less: Depreciation 2,500 47,500

Computer 30,000
Less: Depreciation 3,000 27,000

Vehicle 1,043,000
Less: Depreciation 156,450 886,550

Current Assets 20,000

Cash At Bank 653,338


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FUTURE PLANS:-
Flushsales for the first twelve months of operations
and growing each year thereafter.
Establish moremanufacturing facilities units in Year 1.
Open additional facilities in Year 2 and Year 3 to serve
other areas of the state.
Continue to market Green by contacting and soliciting
business from additional fertilizers manufacturing
units.
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Centre For Management Studies


(MBA 2nd SEM)
CRITICAL RISK :-

Maintaining a suitable temperature.

Availability of labour and raw materials.

Quality degradation.

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Centre For Management Studies


(MBA 2nd SEM)
EXIT STRATEGY:-
As an exit strategy we could simply ofer to sell
our partner half of the business.
We can ofer to bring in a third party whom we
can groom together and sell the third party half
of the venture.
If our partner is not interested in moving on then
we can close our business as an exit strategy and
support each other to achieve other professional
goals.
Give whole of the business into lease.

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Centre For Management Studies


(MBA 2nd SEM)
CONCLUSION:-

The tremendous increase in pollution,


urbanization and environmental hazards
has created serious health
issues.Vermicomposting is a small
approach towards environments and
populations health and safety.

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Centre For Management Studies


(MBA 2nd SEM)
-:THANK YOU:-

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Centre For Management Studies


(MBA 2nd SEM)