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1
A Product Project Report On
Pooja Hair Oil
Academic Year: 2014-15
College: Vivekanand college
Prepared By: Gajera Mukund H.
Submitted to:
Saurashtra University, Rajkot
Guided By: Mr. Jatinbhai sheth
Class: BBA Semester 5
2
PREFACE
B.B.A. course is a special course, which prepares young
entrepreneurs, & it’s very essential that they should have
the basic knowledge about how the small -scale business can
be started or which type of project is to be submitted to the
banks and other financial institution for the purpose of
loan.
One of the subjects namely Entrepreneurship and
Management of Small Scale Business has covered this aspect
with a view to create and develop entrepreneurial skill
among the students.
Today in the growth rate of Indian Economy, S.S.I. plays a
vital role by contribution of 40%, to the total national
income.
3
ACKNOWLEDGEMENT
"Planning is necessary in every walk of life. For successful
planning guidance is necessary."
Many individuals have supported me during the
completion of this project.
First of all, I would like to thank My Parents for providing
me an opportunity for the study of B.B.A., course at Vivekananda
college and Prof. Jatin Sheth, Our faculty, who provided me with
invaluable guidance through out my project.
Lastly, I would thank my parents and my friends, whose
words have encouraged and inspired me throughout the
preparation of the project.
Gajera Mukund H
4
DECLARATION
I undersigned, Gajera Mukund H. the student of T.Y. B.B.A. here by
declares that this project is my own work & has been carried out
under the supervision of my guide Mr.Jatinbhai sheth.
The work has not been previously submitted to any other university
for any examination.
Date: -
Place-Rajkot
Signature
Gajera Mukund H.
5
INDEX
Sr.no. Particulars
1 General Information
2 Production Details
3 Marketing Details
4 Financial Details
5 Future Plan
6 Photos
7 Conclusion
6
GENERAL
INFORMATION
7
GENERAL INFORMATION
Name of the unit Pooja Hair Oil
Address of the unit “Pooja Hair Oil
Porbandar road (ishra),
Ta. Upleta, Dt. Rajkot.
Form of the
organization
Partner
Name of the product Pooja Hair Oil
SSI registration no. Applied For
Size of the unit Small scale
Financial year April to March
8
OWNERS PROFILE
Name: Gajera Mukund H.
Age: 21 years
Address: Navapra, Pithaday
street,Dhank, upleta,
Qualification: BBA (Marketing)
Financial
contribution:
60%
9
Second Partner Name.
Name:
Chabhadiya Nikunj D.
Age: 21 years
Address: Manhar plot-10, mangada main road,
Rajkot, 360002.
Qualification: BBA (finance)
Financial contribution: 40%
10
HISTORY & DEVELOPMENT OF PRODUCT
In 2009-10 “Pooja Hair Oil” established by Mr. Mukund Gajera with
his partner the small scale production. At initial period started
manufacturing of hair oil in small room of factory at Upleta by the
help of 8 workers and two main machinery.
In small time of period the product become famous and its demand
forces the sales in short time they mainly runs on small scale
production and also working as producer of Ayurvedik hair oil with
other competitors in local market.
11
USES OF THE PRODUCT
Hair Oil is typically viscous liquids, either clear or opaque. They
come in various types from normal hair oils, ayurvedic, herbal,
medicinal, etc and cater to different types of hairs. The main
product of “pooja hair oil” is Ayurvedik Hair Oil. In present
times, almost each & every person becomes health conscious and
so as beauty conscious too. As far as health is considered, our
People now a day’s becoming more & more conscious about hair.
Thus, the selected product “pooja Hair Oil” is being introduced
which in market, which is an ayurvedic product.
Pooja Hair Oil being an ayurvedic product has achieved much
popularity. The ingredients used in this oil are ayurvedic, having
various merits with assurance of obvious change in quality &
growth of hair all these together constitutes the higher demand of
this product especially in local market
12
PRODUCTION
DETAILS
13
INDEX
Sr.no. Particulars
1 Introduction
2 Details of the location of plant
3 Name of Raw Materials
4 Details of Machineries
5 Production Process
6 Production capacity
7 Pollution control and safety
measures
14
INTRODUCTION
The development and importance of small scale industries has
increased immensely in this century. There is a great scope for
expansion of small scale units because it requires less capital and at
the same time more opportunities of development are available.
“Pooja Hair Oil” is very famous in local market. The demand of
Ayurvedic oil is very high so the importance of production is high.
To fulfill the market demand it is very important to produce same or
more stockable production of oil.
15
DETAILS OF THE LOCATION OF THE PLANT
Location is very important factor to succeed industry. Every
entrepreneur of a business unit must give full consideration to the
suitable location of his enterprise. An enterprise must choose an
ideal location at the time of launching the enterprise. The selection of
an appropriate location enables the factory to operate smoothly
efficiently and minimum of cost.
This project is located at,
Porbandar road (ishra),
Ta. Upleta, Dt. Rajkot.
Location Factor:
1. Land:-
The lower cost of land in Uplate area with suitable atmosphere
influenced the firm to get established there.
2. Labour :-
Due to the location at industrial estate, all the facilities are
nearly available. The chief factor i.e. labour is easily available
because there are many villages situated nearby.
3. Transport Facility :-
16
The situation of the firm near by the road ways i.e. highway and
also as it is in industrial estate, it gets all the necessary facilities
needed for transportation.
4. Other Facilities :-
Tele communication:-
Undoubtly the govt. has provided this industrial estate
with easy telephone / telegraphic facilities. The firm gets
easy service.
Electricity:-
The infrastructural facility of electricity is easily available.
Thus, location is very near to city, so it is the most important factor
for attracting client and secondly the proposed location has
adequate power and raw materials and finished product can easily
be transferred. So this proposed location is justifiable.
17
NAME OF RAW MATERIALS
Pooja Hair Oil consists of following ingredients:
1 Seasame Oil
2 Extracts of Bhrangroj
3 Mundu vanaspatti
4 Hardey
5 Baheds
6 Amla
7 Sariva
Among all the above ingredients, extract of Bhrungraj is very
important. The major part of oil is formed by Bhrungraj
extracts.
18
DETAILS OF MACHINARY
The following machineries are uses in production of hair oil
1 Mixing tank with stirrer capacity
This machine is for mixing the all ingredients in as per standards
2 Constant filling machine
This machine constantly mixing all the raw materials
3 Filtering equipments
After the mixer of all ingredients many small unuseful parts of raw
materials are left by the help of this machine filtering is possible.
4 Testing machine
After filtering this machine test the standards of oil
5 Packing machine
Final oil is ready to pack in pouch and bottle.
19
PRODUCTION PROCESS
PROCESS FLOW CHART
The process of hair oil manufacturing involves following steps:
1. MIXING:
In this step all the ingredients like base oil, herbal extract/oils,
perfumes and colours are mixed in the desired proportions in
mixing tank using slow speed stirrer for 20 Minutes and then
allowed to settle for two to three hrs.
Base Oil
Mixing Colour Herbal extract Oil
Filtration
Inspection
Bottling & leveling
Packaging
20
2. FILTERATION:
The oils is now filtered through filter press
3. INSPECTION/TESTING:
Filtered oil is sent to laboratory for necessary testing.
4. BOTTELING AND LABELLING:
After passing through required inspection, oil is now filled in
cleaned and dried bottles in required volumes and then sealed
and leveled.
5. PACKGING:
Bottles are now packed in corrugated boxes for marketing.
21
PRODUCTION CAPACITY
Sr.
no.
Particulars Installed
Capacity
Utilized
Capacity
a. Capacity in %
100% 60%
b. Daily Production 170 liter 95 liter
c. No. of working
days in a month
25 days 25 days
d. Monthly
Production
4250 liter 2375liter
e. No. of working
days in a year
300 days 300 days
f. Yearly Production 51000 liter 28500 liter
22
Raw Materials
Raw Materials Requirements
Name Rat kg Reqd./ Day Reqd./ Month
Quantity Amount Quantity
Amla 50 60 3000 1500
Seasame Oil 30 25 750 625
Bhrangroj 1 350 350 8750
Mundu vanaspatti
8 20 160 500
Hardey 8 7 56 175
Sariva 2 250 500 6250
Total 99 4816
23
POLLUTION CONTROL AND SAFETY MEASURES
The manufacturing process of Pooja hair oil does attract pollution
control measures, which is advised to consult State Pollution
Control Board and follow the guidelines offered by them.
It also provide a aid kit and all necessary safety measures are taken
care of incase of any accidents.
IMPLEMENTATION SCHEDULE
The major activities in the implementation of the
project have been listed and the average time for
implementation is estimated at 5 months
No
. B. Particulars
Month
s
1. Scheme Preparation & Approval 1
2. SSI Provisional Registration
2
3. Sanction of loan by financial institution 1
4. Installation of Machinery 2
5. Procurement of Raw material 2
6. Recruitment of technical personnel 1
7. Provision of other facilities like water,
electricity etc. 1
24
MARKETING
DETAILS
25
INDEX
Sr.no. Particulars
1 Introduction
2 Market potential of product
3 Distribution channel
4 Promotional activities
26
INTRODUCTION
Marketing is a one kind of activity of promoting the product in such
a way that consumer will aware about it. It includes primary
resources as well as a set of activities in order to direct the flow of
goods and services from producers to consumers in the process of
exchange and distribution.
It is a dynamic process which includes a set of interacting activities
dealing with a market.
27
MARKET POTENTIAL
Hair oil Industry is registering an important growth in hair oil
market. Hair oil is a mostly common commodity used everywhere.
The demand of perfume hair oil is visible from rural area to
cosmopolitan cities. The ladies used it for both its functional purpose
as well as a beauty care commodity. The demand is increasing at par
with the awareness of hair care, advertisement messages in different
media, satellite TV channels and enhancement of purchasing power
of the individuals. At the same time Hair oil is having export
worthyness too. The Indian market for hair care is estimated more
than Rs.500 crores and perfumed hair oil is an important part of it.
Indian ayurvedic cosmetic products are always in demand although
there is a tough competition in this line but there exists a gap
between demand and supply for the quality products. Now –a-days
people are very crazy for the ayurvedic products in attractive packs
have good demands.
In present times, almost each & every person becomes health
conscious so, there is no question of decrease in demand of hair oil.
28
DISTRIBUTION CHANNAL
Distribution means to distribute, to spread out. In the field of
marketing, channels of distribution indicate routes or pathways
through which goods and services flow, or move from producers to
consumers. The route or channel includes the manufacturer and the
ultimate consumer as well as all intermediate.
“POOJA HAIR OIL”
Whole seller
Retailer
Consumer
29
Pooja flows its products by whole seller to consumer and also direct
sell to the Chemist.
PROMOTIONAL ACTIVITIES
Sales promotion includes those marketing activities, other than
personal selling, advertising and publicity that stimulate consumer
purchasing and dealer enthusiasm and effectiveness, such as
displays, exhibitions, shows, demonstrations, free samples,
trading stamps. Sales promotion is the plus ingredient in the
marketing mix, whereas advertising and personal selling are
essential and basic ingredients in the marketing mix. It is an integral
part of marketing efforts. It is an activity of increasing the total sales
of the firm.
>>DISCONT:
The company provides different types of discount to the wholesaler.
It provides 15% trade discount and 2% cash discount to the
wholesaler.
>>SERVICE TO SELLER:
30
The firm provide discount to the wholesaler as mentioned above.
The firm also pays transportation cost. When any product, which is
of inferior quality in the market, the firm, replaces such kind of
product with another one.
31
FINANCIAL
DETAILS
32
INTRODUCTION
Finance is the lifeline of business. It is the pivot around
which all economics activities revolve. Finance decision has
to get vital role in any organization. It is essential to set up
a systematic management for sound management of sound.
Finance is that administrative area or set of administrative
functions in an organization which relate with the
arrangement of cash and credit so that the organization may
have means to carry out its objectives as satisfactory as
possible.
ADMINISTRATIVE WORK
Particular/Designation No. Salary Total Rs. (per year)
Manager 1 20,000 20,000 2,40,000
Accountant/Salesman 1 10,000 10,000 1,40,000
Skilled worker 2 15,000 30,000 3,60,000
Unskilled worker 3 10,000 30,000 3,60,000
Peoin&other 1 - - 1,00,000
33
Other contingent expenses
Sr. No. Particulars Amount
1. Postage & Stationary 10,000
2. Electricity 1,20,000
3. Transportation charges 33,000
4. Advertisement & Publicity 50,000
5. Direct 40,000
6. Office 20,000
7. Auditing 70,000
8. Packing 60,000
34
WORKING CAPITAL DETAILS
A. Statement showing total working capital requirement.
BREAK EVEN POINT
Sr. No. Particulars Amount
1. Int. on total investment 3,50,000
2. Total Depreciation 20,750
3. 40% salary & wages 5,60,000
4. 40% of other contingent expenses 2,80,000
Total 12,10,750
Sr. No. Particulars Amount
1. Raw Materials 14,00,000
2. Salaries 12,00,000
35
B.E.P. (%)
= {Fixed Cost / (Fixed Cost + Profit)} X 85
= 13,11,900/ (13,11,900 + 9,70,000) X 85
= 48.86%
B.E.P. (units)
= Fixed Cost/ (Contribution/unit)
= 13,11,900/0.56
= 23,42,679 Hair Oil
B.E.P. (Rs.)
= B.E.P. x S.P./unit
= 23,42,679 x 1.12
= Rs.26,23,800
36
P. V. Ratio
= Contribution per unit / Sales X 100
= 0.56 / 1.12 X 100
= 50%
Gross Profit Ratio
= Profit / Sales X 100
= 32,61,450/ 43,81,450 X 100
= 74.43%
Fixed Assets Ratio
= Fixed Assets/ Sales X 100
= 1,95,000/43,81,450X100
= 4.45%
37
Net Profit Ratio
= Profit after Tax / Sales X 100
= 12,87,700 /43,81,450 X 100
= 29.39%
BALANCE SHEET
TRADING A/C
2013-14 Particulars Debit Particulars Credit
Opening
Stock
Purchase Account
Sales Account
Purchase 14,00,000 Sales 43,81,450
Expenses
Closing Stock(Trading)
Electricity Expense
1,80,000 Closing Stock 7,00,000.00
Direct expenses
40,000
Wages 2,00,000
Gross Profit 32,61,450
Transfer To P&L A/c.
50,81,950
50,81,950
38
P&L A/c
2013-14
Particulars Debit Particulars Credit
Gross Profit 32,61,450
Salaries 12,00,000
Stationery 10,000
Telephone 10,000
Auditing 70,000
Office 20,000
Rent
land&build 150000
Distribution
Advertising 50,000
Packing 60,000
Transport 33,000
Financial
int. on loan 1,00,000
Insurance 1,50,000
Int. own cap. 1,00,000
Depreciation
electric 1,250
Plant&mach 6,000
labortory 3,000
office eqip 3,000
furniture 6,000
motorcycle 1,500
mukund 772620
12,87,700
nikunj 515080
32,61,450 32,61,450
39
balance Sheet
2013-14
Particulars Liability Particulars Asset
Rs. Rs. Rs.
Capital Account
Fixed Assets
mukund 772620 12,87,700
nikunj 515080
Sundry Creditors
Plant & Machinery
60,000
yuvraj ind. 6,25,800 6,25,800 -Deprecition 6,000 54,000
sun ent. 7,15,950 7,15,950 Laboratory Equipments
15,000
-Deprecition 3,000 12,000
Bank OCC a/c
SBI Term Loan A/c (16%)
6,00,000
Furniture 60,000
loan 1,50,000 4,50,000 -Deprecition 6,000 54,000
Motorcycle 30,000
-Deprecition 1,500 28,500
Office equipments
30,000
-Deprecition 3,000 27,000
40
Sundry Debtors
parth&suns. 6,00,000 6,00,000
komal ent. 60,000 60,000
ramesh ind. 4,93,950 4,93,950
Bank Accounts
SBI Bank A/C
6,50,000 6,50,000.
Cash-in-
hand
Cash-in-hand
4,00,000 4,00,000
Stock-in-
hand
Closing Stock
7,00,000 7,00,000
Total 30,79,450 Total 30,79,450
41
Trading A/c 2014-15
Year 2014-15
Particulars Debit Particulars Credit
Opening Stock
7,00,000
Purchase Account
Sales Account
Purchase 20,00,000 Sales 51,40,750
Expenses
Closing Stock(Trading)
Electricity Expense
2,00,000 Closing Stock 8,00,000
Direct expenses
50,000
Wages 2,50,000
Gross Profit 27,40,750
Transfer To P&L A/c.
59,40,750 59,40,750
42
P/l A/c Particulars Debit Particulars Credit
Gross Profit 27,40,750
Salaries 12,00,000
Stationery 10,000
Telephone 10,000
Auditing 70,000
Office 20,000
Rent
land&build 150000
Distribution
Advertising 60,000
Packing 65,000
Transport 35,000
Financial
int. on loan 1,50,000
Insurance 1,50,000
Int. own cap. 1,00,000
Depreciation
electric 1,250
Plant&mach 6,000
labortory 3,000
office eqip 3,000
furniture 6,000
motorcycle 1,500
Net Profit 7,00,000
mukund420000
nikunj280000
27,40,750 27,40,750
43
Balance Sheet
2014-15
Particulars Liability Particulars Asset
Rs. Rs. Rs.
Capital Account
Fixed Assets
mukund 4,20,000 7,00,000
nikunj 2,80,000
Sundry Creditors
Plant & Machinery
60,000
yuvraj ind. 5,37,750 5,37,750 -Deprecition 6,000 54,000
sun ent. 7,15,000 7,15,000 Laboratory Equipments
15,000
-Deprecition 3,000 12,000
Bank OCC a/c
SBI Term Loan A/c (16%)
4,50,000
Furniture 60,000
-loan repayment
1,50,000 3,00,000 -Deprecition 6,000 54,000
Motorcycle 30,000
-Deprecition 1,500 28,500
Office equipments
30,000
-Deprecition 3,000. 27,000
Sundry Debtors
parth&suns. 3,00,000 3,00,000
komal ent. 77,250 77,250
ramesh ind. 1,00,000 1,00,000
Bank Accounts
SBI Bank 6,00,000 6,00,000
44
A/C
Cash-in-
hand
Cash-in-hand
2,00,000 2,00,000
Stock-in-
hand
Closing Stock
8,00,000 8,00,000
Total 22,52,750 Total 22,52,750
Trading a/c
Trading a/c
year 2015-16
Particulars Debit Particulars Credit
Opening Stock
6,00,000
Purchase Sales
Purchase 17,00,000 Sales 48,06,750
Expenses
Closing Stock
Electricity Expense
2,50,000 Closing Stock 8,59,000
Direct expenses
6000
Wages 2,50,000
Gross Profit 28,05,750
Transfer To P&L A/c.
56,65,750 56,65,750
45
P&L A/c
P&L A/c
2014/15
Particulars Debit Particulars Credit
Gross Profit 28,05,750
Salaries 12,00,000
Stationery 10,000
Telephone 10,000
Auditing 70,000
Office 20,000
Rent
land&build 150000
Distribution
Advertising 65,000
Packing 70,000
Transport 40,000
Financial
int. on loan 1,50,000
Insurance 2,00,000
Int. own cap. 1,50,000
Depreciation
electric 1,250
Plant&mach 6,000
labortory 3,000
office eqip 3,000
furniture 6,000
motorcycle 1,500
Net Profit 7,50,000
mukund450000
28,05,750 28,05,750
46
Balance sheet
Balance sheet
Particulars Liability Particulars Asset
Rs. Rs. Rs.
Capital Account
Fixed Assets
mukund 4,50,000 7,50,000
nikunj 3,00,000
Sundry Creditors
Plant & Machinery
60,000
yuvraj ind. 5,30,250 5,30,250 Deprecition 6,000 54,000
sun ent. 6,57,500 6,57,500 Laboratory Equipments
15,000
Deprecition 3,000 12,000
Bank a/c
SBI Term Loan 3,00,000.00
Furniture 60,000
loan 1,50,000 1,50,000 -Deprecition 6,000 54,000
Motorcycle 30,000
-Deprecition 1,500 28,500
Office equipments
30,000
47
-Deprecition 3,000 27,000
Sundry Debtors
parth&suns. 3,00,000 3,00,000
komal ent. 53,250 53,250
ramesh ind. 1,00,000 1,00,000
Bank Ac
SBI A/c 3,00,000 3,00,000
Cash-
in-hand
Cash-in-hand
3,00,000 3,00,000
Stock-in-
hand
Closing Stock
6,59,000 8,59,000
Total 20,87,750 Total 20,87,750
48
RISK FACTORS
As the product is new the main risk is that
whether market will readily accept the product or
not. It will prove success if it properly marketed.
Another risk is that if any new material comes
into market other than paper, then it will be hard
to maintain the market.
49
NAME & ADDRESS OF MACHINERY & EQUIPMENT
SUPPLIERS
1. Arjun oil miler ind.
Natavar nagar, mp-10,
Kutiyana.
2. M/S Sandhu packin machine ind.
Yoginagar. Plot No.– 20,
Keshod.
NAME & ADDRESS OF RAW MATERIAL SUPPIERS
1. Yuvraj ayurvedik shop,
Jivandhara, ramraj society,
Dhoraji.
2. shee ram coconut.
Chapatti road,
Porbandar.
3. Yadav coconut.
Near madhav ray tample,
Madhavpor.
50
DISCLODURE OF A/cing POLICIES
Depreciation is calculated on straight line
methods.
Salary is given within 1st week of every month.
Raw material is purchased once in two months.
Stock is calculated at cost or market price
whichever is
low.
Interest on ownership capital is used for costing
purpose and is reinvested in business again
every year.
51
CONCLUSION
In the product project report on Sav-E paper bags
I have discussed all financial data and other relevant
information
The market of Sav-E paper bags is expanding;
demand for the product is increasing day by day. The
return on this business is also satisfactory.
At last it can be said that future of this product is
very bright.
With the expectation of high profitability it is
assumed that it would be the perfect product to be
manufactured in today’s environment. AFTER ALL IT’S
AN ENVIRONMENTAL FRIENDLY PRODUCT!!! Its Sav-E
paper bags.
52
Future Plans
To use totally eco-friendly papers, which are made
out of baggage and not tree.
To make the product popular in every place of
Gujarat and gradually cover all near by states.
To make the firm a medium scale industry and then
a large scale.
If possible I would export my product, as they are
highly in demand in foreign countries.
Lets hope for the best and work hard to make all
future plans come true!!!
***> I will try to increase old technology to new
technology.
53
__> I will go to this level to that level.
54