Index

Sr no
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Index
Introduction
Project at a glance
Profile of promoters
Justification of location
Product details
Raw materials and its sources
Details of suppliers
Manufacturing process
Staff and labour
Administration
Financial details
Break even point
Fixed assets
Cost of production and details of sales
Profitability and ratio analysis
Market analysis
Competitors
Risk factors
Future prospects
Bibliography

Introduction
For the success in anything it is necessary to have the knowledge of
your subject and it is good to develop it by the practically.
To develop the skill of an entrepreneur, a subject called
ENTREPRENEURESHIP has been introduced in T.Y.B.B.A.S syllabus.
Management and development of small scale industries is introduced in this
subject. In this subject each student can get practical knowledge as an
entrepreneur y preparing the product project report.
The presented product which is KESHAN HAIR OIL is also an
ayurvedic product. The ingredients used in this oil are ayurvedic and having
various benifites with assurance of obvious in quality and growth of hair.

Project at glance
1) Name of the firm
2) Name of the product
3) Registered office
4) Location of factory

5) Type of firm
6) Name o the promoters
7) Products
8) Size of unit
9) Size of building
10)Size of land
11)Ssi reg. no
12)Subsidiary register no
13)Cost of project
14)Sources of finance
15)Roi
16)Coc

: D J Enterprise
: KESHAN HAIR OIL
: GIDC Estate,
Metoda
Rajkot
: D J Firm
GIDC Estate,
Plot no 9556,
Metoda,
Taluka lodhika,
Dist- Rajkot
GUJARAT
: partnership
: miss Dhara d. vora
: miss Jalpa h. sheth
: Hair oil
: small scale unit
: 75250 sq ft
: 1610 sq ft
: applied for
: applied for
: 1,23,58,000
: 70% owned
: 30% borrowed
: 13%
: 6.9%

Profile of promoters
Here is two partners for the business. Their bio-data are as below.
PARTNERS-1
NAME

: MISS DHARA D. VORA

AGE

: 20 YEARS

ADDRESS

: SHREE
Kalawad raod,
Near sankalp hotel,
Rajkot

EDUCATIONAL
QUALIFICATION

: B.B.A.(with marketing)

EXPERIENCE

: Fresher

RESPONSIBILITU

: Sales dept. & finance dept.

FINANCIAL
CONTRIBUTION

:60%

PARTNER-2
NAME

: MISS JALPA H. SHETH

AGE

: 25 Years

ADDRESS

: GAYATRI
Near P.D. malaviya collage,
Ram nagar,
Rajkot.

EDUCATIONA
QUALIFICATION

: M.B.A.(with H.R.M.)

EXPERIENCE

: 3 years

RESPONSIBLITITY

: Personal dept. and production dept.

FIANANCIAL
CONTRIUTION

: 40%

Justification of location
Location of the unit means to locate your industry at particular place.
When a new industry is going to establish or when a unit is expanding its
business, the decision to be taken is of the location of the plant. Success or
failure of the company depends upon this important factor.
There are various factors attecting while deciding about the perfect
location such as;
-

LAND
LABOUR SUPPLY
POWER SUPPLY
TRANSPORTATION FACILITY
OTHER FACTORS
And the D.J. enterprise has concentrate upon this factor line,

LAND:Land is vary important and first factor of production without land, we

cant able to production of any product and with this context D.J. Enterprise
has got it at lower cost on account of its location at GIDC Estate, more it
also proved the suitable atmosphere.
LABOUR SUPPLY:In this context, it is beneficial for any firm to get the labour easily and
at cheaper rate, so that they can justify here, D.J. Firm is situated in GIDC
area where there is no any shortage of cheaper labour and can easily
available.
POWER SUPPLY:At initial stage of any industry they try to reduce their expenditure
more. So, that keep an eye on all the factors and one of it is power or
electricity. Because it is that factor which they needed most, without power
their machines are not work so, to reduce the expenditure on power more

they try to locate at industrial area where it is easily available D.J. Enterprise
get it easily and cheaper rate ecause GEB provided them power with this
facility.
TRANSPORTATION FACILITY:If the cost of production is increase than profit may decrease because
of more expense in production. And if it is not done at a time than it creates
problems for the firm D.J. Enterprise is situated at high ways and as it is in
industrial estate, it gets all the necessary facility at low cost.
OTHER FACTOR:There are many other factors such as, telecom facility, nearness of
market, government facilities etc. D.J. Enterprise has try its best to prove for
the perfect location.
LOCATION:-

D.J. ENTERPRISE
GIDC ESTATE,
PLOT NO 9556
METODA
RAJKOT.

Product details
Here the presented product I,e. KESHAN HAIR OIL is an
ayurvedic products with quality.
It is now not unknown that ayurvedic products are gaining much &
much popularity due to wide of its products development and wide selling of
it. Now a days almost each and every people become health conscious and
most of the ladies like look beautiful and wide range of beauty matters are
available in ayarvedic and hair, it is only thing which contributes major
changes in the looks of a person people are becoming more and more
conscious about hair
KEAHAN An ayurvedic hair oil involved various ayurvedic
ingredients with various merits and assurance of obvious change in quality
and growth of hair. It may together constitute the higher demand of product.
Benefits and main ingredients of itIt includes ayurvedic ingredients like, amala, bawcha, brahmi, hirda,
baheda, jatamansi and their benefits are as follows:
AMALA

:- Helps for the growth of hair

BAWCHI

:- Eradicates dandruff

BRAHMI

:- Brain vitalizer

HIRDA

:- Hair nutrient

BAHEDA

:- Hair tonic

JATAMANSI

:- Arrests hair fall

Raw material and its sources

RAW MATERIAL

COCONUT OIL
AMALA
BAWCHI
BRAHMI
HIRDA
BAHEDA
JATAMANSI
SOURCES OF RAW MATERIAL

- RASASRAM PHARMACY
BEHIND, BHUVNESHWAR PITH,
OPP, POST OFFICE,
GONDAL-360311

Details of suppliers
1.

ABC medical store

yagnik road,
near, mobile express,
Rajkot

2.

NITYADARHAN medical stores

near, udhyog nagar,
gandhimagar(Gujarat)

3.

AVADH medical stores

vilas nagar-5
worli
Mumbai-400001

Manufacturing process
For the quantity of 100ml
Contains are,
Extracts of amala
Bawchi
Brahmi
Hirda
Bajeda
Jatamansi

5gm
5gm
5gm
5gm
5gm
5gm

Base coconut oil-

100%

ProcessStep-1 mixture of various ingredientsThis is the first step, in this step all ingredient like amala, bawchi,
brahmi, hirda, baheda and jatamansi are mixed together and kept in cloth
bag tightly tied. This cloth bag must be very thin.
Step-2 Heating
Now, after the mix up the cloth bag is immersed in the oil. All the
ingredients are tied down properly till they get properly mixed in the oil,
then heat is given. Entire mixture is heated until all the ingredients mixed in
oil.
Step-3 purification
After the mixture gets heated and mixed properly the final product is
obtained by purifying it with help of specific machinery and which is
specifically prepared for purification only,

Step-4 Final output

After the purification process, finally oil is gained. So the final output
of hair oil is produced.
Step-5 Bottling
It becomes quite necessary and obvious that such kind of liquid are
bottled in 100ml
Bottling process1. acquiring bottlesThe very first aspect to be considered is to get bottles. As being a
partnership firm, due to limited finance the firm gets the bottles from SUNN-SHADE GLASSWARE. Thus, we import bottles for its packing.
2. Filling the bottles
In this stage bottle are filling up with oil through filling machine in
100ml bottles.
Step-6 Packaging
It is quite known that the chief attraction of any product is a
packaging. Any one gets attracted to the products, if the packaging is good.
Moreover the life of the product & quantity of the product is maintained
through packaging.
Packaging of our firm is very attractive. After bottling, the bottles are
packed in boxes with polyphone cover, size, shape, materials, colour of
packaging is very attractive.
Step-7 labeling
The label may be a simple tag attached to the product or an
elaborately designed graphic that is part of the package. The label carries full
information about product and the firm in short form.

A label of our firm describe who made it, where it was made, when it
was made, what it contains, how it is to be used and how to use it safely.

Staff and labour

Staff are expected to give odvice, provide service, maintain contain
and perform administrative task.
In our firm 9 employees are in top, middle level & 29 employees are
in lower level. Total no of employee are 38.
No.
1
2
3
4
5
6
7
8
9
10
11

Level
Top
Middle
Lower

Designation
Production manager
Finance manager
Sales manager
Designer
Machine operator
Supervisor
Skilled labour
Unskilled labour
Clerk
Peon
Waterman
Add-20% benefit

No.
Particular
1
Administrative & supervisory salary
2
Technical skilled & unskilled labour

No of
employ
1
1
1
1
4
1
15
9
2
2
1
38

Monthly

Yearly

8,000
8,000
8,000
6,000
20,000
6,000
60,000
18,000
8,000
3,000
1,500
1,46,500
29,300

96,000
96,000
96,000
72,000
2,40,000
72,000
7,20,000
2,16,000
96,000
36,000
18,000
17,58,000
3,51,600

Monthly
51,000
1,24,800

Yearly
6,12,000
14,97,600

Administration
Procedure
Preparation of project
Selection of site
Registration of SSI
Availability of finance
Selection of machine
Procurement of machine
Recruitment

Days
30 days
15 days
20 days
15 days
15 days
15 days
08 days

Financial details
A)
B)
C)
D)
E)
A)

COST SHEET
OPERATING STATEMENT
TRADING ACCOUNT
PROFIT & LOSS ACCOUNT
BALANCE SHEET
COST SHEERT
Project cost sheet of kasham hair oil partners firm for the year 20072008

Particulars

Amt. Rs.

Amt. Rs.

Amt.(P.Unit.)

Opening stock of raw materials

+ purchase of raw materials
- closing stock of
raw
materials
cost of materials
+ direct wages
direct expenses
(A) Prime Cost
+ factory overheads
salary of employees
repairs & maintenance
dep.
On
plant
&
machinery(20%)
dep. On building (10%)
(B) factory cost
+ administrative overheads
interest on ownership
salary
telephone & postage
printing & stationary
legal expenses
insurance
electricity bills
spares & stores

37,90,800

37,90,800
16,63,596
54,54,396

16.20
7.11
23.31

19,23,100
73,77,496

8.22
31.53

9,36,000
7,27,596
14,97,600
50,000
2,31,000
1,44,500
5,19,036
6,12,000
45,000
30,000
24,000
84,000
72,000

misc. expenses
dep. On computer
dep. On furniture
(c) administrative cost
+ op. stock of finished goods
- cl. Stock of finished
goods
cost of production of goods
sold(D)
advertising & distributions
expenses
commission to salesman
dep. On delivery van
cost of sales
(E) sale of finished goods
net profit

36,000
45,000
60,000

15,22,036

6.50

88,99,532

38.03

88,99,532

38.03

3,06,600
92,06,132
99,00,000
6,93,868

1.31
39.34
42.31
2.97

1,20,000
63,600
1,23,000

B. Operating statement
Projected operating statement of Kesham Hair Oil for the year 2007-08
Particulars
Rs.
Rs.
Sales
- cost of operation
raw materials
direct wages skilled
unskilled
direct expenses
utilities
+ opening stock of raw materials
opening stock of finished goods
- closing stock of raw materials
closing stock of finished goods
Total cost of operation (b)
Gross profit (a-b)
indirect expenses
total factory cost
total office & administration cost
total selling & distribution cost
preliminary expenses
EBIT = GP Total indirect exp
- interest on borrowed loan
EBT
- TAX @ 35%
EAT (NET PROFIT)

99,00,000
37.90.800
7.20.000
2.16.000
9.36.000
7.27.596
-

19.23.100
15.22.036
3.06.600
80.000

54.54.396

54.54.396
44.45.604

38.31.736
6.13.868
3.33.666
2.80.202
98.070
1.82.132

TRADING ACCOUNT
Project trading account of kesham hair oils partners for the year 2007-08
Particulars
Rs.
Particulars
Rs.
To , opening stock
To, labour expense
To, raw-material
expenses
To, utilities
To, gross profit

9,36,000
37,90,800
7,27,596
44,45,604
99,00,000

By, sales

99,00,000

99,00,000

PROFIT & LOSS ACCOUNT

Projected profit & loss account of hairoil partners for the
Particulars
Rs.
Particulars
Rs.
To, salary
To, telephone exp.
To, printing & stationery
To, legal expenses
To, mis. Expenses
To, traveling &
transportation
To, income tax
To, interest on borrowed
loan
To, depreciation
P & M 2.31.000
L & B 1.44.500
Comp. - 45.000
Furniture. 60.000
To, preliminary exp.
To , advertising exp.
To, dep. Of delivery van
Net profit

21.09.600 By, gross profit

40.000
30.000
24.000
36.000

44.45.604

80.000
244.230
3.33.666

4.80.500
8.000
1.20.000
1.23.000
8.16.608
44.45.604

44.45.604

BALANCE SHEET
Projected balance sheet of hair oil partners for the year 2007-08
Liabilities
Rs.
Assets
Rs.
Capital
Ms. Dhara 41.75.371
Ms. Jalpa 27.83.581
69.58.952
Add profit
Ms. Dhara 4.89.965
Ms. Jalpa - 3.26.643
8.16.608
bank loan 26.95.920
- instalment 7.41.480

MARKET ANALYSIS
Now a days ayurvedic products are more and more produced and sale
in the market. People keep faith on ayurvedic products.
Now in the market there are many ayurvedic hair oil are available
such as Keshposha, Shyamla, Pavitra, Mahabhringraj, Sesa etc.
Market analysis means, if you produce a product and put into market
for sale that types of features or adding innovative features in your product,
so that consumer market can be attracted.
Before, few years ago there was not famous market for ayurvedic hair
oil but now people become heath conscious and thats why market of such
hair oil is increases.
Before, 5yrs. Only 15% to 20% people were using ayurvedic products
namely hair oils, but at present 40% to 45% people are using it and in
coming 5 yrs it will definitely increase up to 80% to 85% approximately. So
we can say that demanol for hair oil will increases day by day.

COMPETITORS
Generally, hair oil is the consumer goods and used it regularly. So its
availability is very cheap and normal. But it if we look at its main
competitors then it is,

Shlimala
Keshposa
Sesa
Mahabhringraj
Pavitra etc.

RISK FACTORS
- As is newly established, there could be harassment by other
unit.
- The unit must be prepared for the high level competitions.
- The unit must be prepared for the price decreasing
- The unit should concentrate on the consumer demand and price
factors.
- The unit can complete easily with small unit but also should
ready for the competition with big unit like Dabur,
Mahabhringraj hair oil, Sesa, Pavitra etc.

FUTURE PROSPECTS
Ayurvedic product either in form of medicines or in form of lotion &
oils today it is achieved much popularity. More & more people are getting
known with the benefite of ayurvedic such items is to increase day to day.
Thus, the production in anticipation of demand is facilitated.
As far as Kesham Hair oil is concerned its demand is just whooping
every day in lot. As it has advantages again as compared to other hair oil it is
outstanding as it has is a great future.

BIBLIOGRAPHY
Production and operating management.
- Chunawala & Patel
Financial Management
- kings
Web site
- www.mahabhringrajharioil.com
Other related refrence books.