NORTH INDIA TECHNICAL CONSULTANCY ORGN. LTD.

(Joint Venture of All India Financial Institutions, State Level Financial

Institutions, Public Sector Commercial Banks)

SCO 131-32, 1st Floor, Sector 17-C, Chandigarh

Phone: 0172-2703993, 2707371; Fax : 0172-2704994,

Email: md@nitcon.org, Web site : www.nitcon.org

ABOUT NITCON

NORTH INDIA TECHNICAL CONSULTANCY

ORGANISATION LTD. (NITCON), AN INDUSTRIAL,

TECHNICAL AND MANAGEMENT CONSULTANCY

ORGANISATION CAME INTO EXISTENCE IN THE YEAR

1984. NITCON HAS BEEN PROMOTED BY

(A) ALL INDIA FINANCIAL INSTITUTIONS (IFCI LTD.,

SIDBI, ICICI Ltd.),

(B) STATE LEVEL FINANCIAL INSTITUTIONS (PSIDC,

PSIEC, PFC), CITCO AND

(C) PUBLIC SECTOR COMMERCIAL BANKS (SBOP, SBI,

BOI, PNB, PSB, OBC, UCO, UBI)

OBJECTIVE:

TO RENDER COST EFFECTIVE

PROFESSIONAL – TECHNICAL/

MANAGERIAL CONSULTANCY SERVICES TO

TINY/ SMALL/ MEDIUM/ LARGE SCALE

INDUSTRIES/ ENTREPRENEURS/

INSTITUTIONS/ GOVT. AND GOVT.

AGENCIES.

• Human Resource Development

• Project Consultancy & Advisory

Services

• Energy Conservation /

Management Studies

N I T C O N ACTIVITIES

Till date NITCON has conducted 590

EDPs for different target groups and

Trained over 15,019 candidates. More

than 8,400 first generation entrepreneurs

have already implemented their units with

incremental investment of about Rs.2,520

lacs and creation of primary employment

of over 12,600 persons.

AREAS OF SPECIALISATION

• Preparation of Techno Economic Feasibility Reports

(TEFR)

• Project Evaluation/ Appraisal Studies

• Diagnostic studies of existing Sick industries units for

Corporate Debt Restructuring

• Stock Audits

• Valuation of Assets, Securities, Sale of assets, OTS

etc.

• Services under Securitisation Act 2002

Project Consultancy & Advisory Services

AREAS OF SPECIALISATION

• Electrical Energy Audits

• Thermal Energy Audits

• Assistance for Implementation

• Energy Conservation at New Projects and

at Expansion Stages

Energy Conservation / Management Studies

WHAT IS PROJECT?

IDEA

What is Project ? • “ A project is an organized unit

dedicated to the attainment of a

goal, the successful completion of a development project on time , within

budget, in conformance with

predetermined programme specifications .”

• Encyclopedia of Management.

• Attributes

• A Course of action

• Specific objectives

• Definite time perspective

Characteristics

1. Objectives: Every project has a well defined set of objectives.

2. Life Span: A project has a limited span of life which can a few days, weeks, months or years, it cannot continue endlessly.

3. Single entity: A project is one single entity and the responsibility is centralized.

4. Team work

5. Life Cycle: The principle stages of the cycle are identification , its design, preparation and appraisal, implementation and its evaluation.

6. Uniqueness: No two projects can be exactly similar.

7. Change prone: A project cannot be totally inflexible.

8. Successive: What will happen in the next stage is not known. The details gets finalised successively with the passage of time.

9. Customer Oriented : A project is made to the order of customer.

10. Unity : All the activities remain interrelated

11. Sub Contracting : High percentage of work is done through sub contracting.

12. Risk and uncertainty: The degree of risk and uncertainty will depend upon how a project has passed through its various life cycle phases.

PLANNING A PROJECT

Planning is the most important management

function in any type of industry or business,

irrespective of its size and ownership.

Need for proper planning is felt at each stage,

the three major stages being:-

(A) Project Formulation Stage.

(B) Project Implementation Stage.

(C) Project Operation Stage.

(A) PROJECT FORMULATION STAGE

Sickness is not always a post project implementation

feature. Many projects are born sick.

Project Selection: If the product selection is unsound, the

project is bound to face rough weather. Mainly two

selection situations have been observed which explain bulk

of the cases of faulty product selection.

a) Majority of the entrepreneurs in a particular area are

going in for specific industry e.g. Rolling Mills,

Sports Goods, Plastics, Cotton, Ginning, Oil Mills,

Textiles, etc.

The en-masse, indiscriminate entry brings in its way,

raw material shortages, labour availability problems

and acute competition.

(b) The failure to relate the product to one’s own

background is another common error in product

selection e.g. city based engineer launching an

agro based product.

Product Selection: There are several factors that are

required to be carefully studied for product selection e.g.

• Assessment of technology requirement.

• Optimum viable capacity of the plant.

• Location.

• Fixed Investment decisions.

• Equity Base

• Market Analysis.

Identifying a Viable Project:

The process of identifying a viable project depends

largely on careful study and matching of the

Entrepreneur’s personal characteristics, and

environmental factors, and the enterprise itself.

(III)

Enterprise

(I)

Entrepreneurs

(II)

Environment

Some of the personal characteristics

(Entrepreneur’s) to be considered while identifying a

project are:-

• Family Background

• Special Interests (relating to type of product)

• Previous experience (whether relevant to the project

under consideration)

• Skills, Managerial as well as technical.

• Personality Traits.

• Previous Trainings.

(I) Entrepreneurs – Personal Characteristics

(ii) ENVIRONMENTAL FACTORS

Government Policies.

Negative list or priority area.

Backward areas - tax benefits.

Level of technology in the area.

Competition with existing manufacturers.

Availability of raw material, skilled manpower, etc.

Demand/ Supply scenario

• Product Line – One must broadly identify one particular

line of activity keeping in view his personal traits/

interests and the environmental factors.

• Then, with a deeper insight into all above factors, one

can decide upon he type of products e.g. in Automobiles

one should identify which item. Engine parts,

suspension, transmission, accessories, etc. In packaging,

what type, boxes, plastic skin packing carry bags, etc.

• After selecting the type, one has to identify the range of

the product e.g. automobiles, Engine parts, then specific

parts, the engine parts like pistons, valves, housing, etc.

• Size of the unit and the technology required are also to

be determined after a thorough study of all the factors.

• Demand assessment is also very important.

(III) Enterprise

• Chances of diversification.

• The changes in technology and consumer

acceptance in the past and the likely trends in

future.

• The life of the product. It is advisable to launch a

project while it is in the growth stage. This

requires thorough study of market trends.

• SWOT Analysis involving assessment of personal

strengths and weaknesses with respect to that of

the project and the threats and opportunities posed

by the environment.

(IV) Other Factors

• Chances of diversification.

• The changes in technology and consumer acceptance

in the past and the likely trends in future.

• The life of the product. It is advisable to launch a

project while it is in the growth stage. This requires

thorough study of market trends.

• SWOT Analysis involving assessment of personal

strengths and weaknesses with respect to that of the

project and the threats and opportunities posed by

the environment.

(IV) Other Factors

The key components of the market survey report are as

follows:-

Introduction • End products

• End users

• Suitability and strength of selecting

the particular product.

Product • Specifications, sizes brands

packings, selling prices, etc.

Assessment of

Demand/supply

• Class and type of consumers.

• Patterns of consumption and

frequency of purchases.

• Product life cycle and present

status.Past demand pattern.Future

anticipated demand

projections.Buying criteria and

influencing factors.

MARKET SURVEY REPORT -- KEY COMPONENTS

COMMERCIAL APPRAISAL

North India Technical Consultancy Orgn. Ltd. (NITCON) SCO 131-132, 1st Floor,

Sector 17-C, Chandigarh Tele : 0172-2707371, 2703993