BUSINESS PLAN

Presented byJoshi 11pba207Fr.Anto 11pba210Michaline 11pba221Arul jothi 11pba233Edward 11pba240Valarmathi

11pba242

“Print the flex in your heart”

Tag Line:

VISION AND MISSION The best and reliable flex printing unit in Tamil nadu. Reach to the people with advanced and attractive flex.

Executive summary

Our project ‘MONALISA FLEX’ flex printing unit which is going to be launched on 2012May 1.

This firm has been administered by a group of MBA students from JIM Trichy.

The product we manufacture is all types of flex banners and flex boards.

We are committed to provide high quality flexes with minimum cost.

We start this business by realizing that there is a huge increase in using different types of flex boards both for advertisement and information.

Our total project value has been expected to be 2056000

Location

Thillai Nager, 8th CrossIt is because Thillai nager is the heart of the

city.Transportation will be easy.

Address:

Monalisa flex

8th Cross

Thillai nager

TrichyWebsite: www.monalisaflex.inPhone: 09847320312, 08526696515

Market strategyPrice

Low and affordable price strategy.Product

High quality product by using advanced technology and creative designing.

PlaceEasy access to bus stands and railway

junction.

PromotionAds through local dailies, local TV

channels, FMS and hand outs.

Word of mouth Poster behind auto and bus

ProcessOrder receiving

Designing

Proof checking

Printing

Packing

Distributing to end user

Organizational structure

Board of Directors

Finance DeptHR Dept Marketing Dept Designing Dept

Cleaning Staff ,Receptionist &

DriverSupervisor

SWOTReasonable priceQuality with offer Availability of transportation facility Immediate delivery Variety and innovative design

Advertisement agencyExpand over the India

It is seasonal

Low competitors price TV Radio advertisementIncrease in transportation costEco friendly

Financial plan

Total Cost of ProjectLand & Building

Advance 100000Rent (10000*12) 120000 220000

Plant & MachineryFlex Machine(Third eye technology) 500000

Computer 14000*4 56000Color Printer(hp laser) 15000

Furniture 40000Generator (4kv - 7 kv) (Green) 90000

Wires & Cables 10000A/c 15000 726000

UtilitiesElectricity(10000*12) 120000Telephone(1000*12) 12000

Water (1000*12) 12000Diesel (per day 10 litre @40) 150000 294000

Raw materialsFlex Sheet(1 feet @3) 540000

Stationary 10000Advertisment 50000 600000

Man powerSkilled person(10000*12) 120000

Receptionist(4000*12) 48000Other(4000*12) 48000 216000

Total cost 2056000

Break Even Point

Sales (180000 Sq.feet @ 10 ) 18000000Variable cost

Raw Material 540000Utilities 294000Total Variable cost 834000(per Sq.feet. Rs 4.63)Contribution(s-v) 17166000Fixed costsSalary 216000Rent 120000Dep on Fied Assets 84000Total Fixed costs 420000Total profit 16746000Break even point 90712.74298 907127.4298Calculation of BEPFixed cost/Contribution per feet 420000/4.63 90712.75BEP Sales ( BEP Sq.feet* SP per Sq.feet (Rs.5.05) 907127.5

Projected profitability for three years

Level of Activity

Particulars 50% 80% 100%Year 1 Year 2 Year 3

Sales turn over 90000 Sq.feet @ Rs.10 900000 1440000 1800000Cost of ProductionRaw material 270000 432000 540000Utilities 147000 235200 294000Salary 108000 172800 216000Cost of SalesAdministrative exp 48000 60000 72000Total costs 573000 900000 1122000Profit Before Interest and Taxes 327000 540000 678000Interest on term loan (10% on 12 laks) 120000 120000 120000Depriciation (10% on P&M) 72600 72600 72600PBT 134400 347400 485400Tax 0 15080 42280Profit After tax 134400 332320 443120Cash Accruals (Add Dep) 207000 404920 515720Term loan repayment 100000 300000 400000Net Cash Accruals 107000 104920 115720

Questions