A

PRODUCT PROJECT REPORT

ON

-: PERPARED BY: Rahish R. Mahida

COLLEGE
Shri Patel Kelavani Mandal College of Technology & B.Ed.
ACADEMIC YEAR
2012 13
CLASS
T.Y.B.B.A.
ROLL NO. : 36
- : SUBMITTED TO: Saurashtra University
-: GUIDED BY:JAY APTEL

I have undersigned Rahish R. Mahida

a student of

T.Y.B.B.A. hereby declare that the project report is my own work and
has been carried out under the supervision on guidance of Prof. Anish

Durvesh,
This work has not been previously submitted to any other
university for any other examination.

Date :
Place : Junagadh

Signature
Rahish Mahida.

Small Scale Industry is the pillar of industrialised Indian

economy. In India, the S.S.I. provides more than five times
employement than the Large Scale Industry. More over, in a short time
preiod, S.S.I. I have made a notable contribution in the adoption of
modern techniques.
It is very good opportunity for me to submit this report for S.S.I.
under the prescribed syllabus of Saurashtra University, Rajkot. The
object of this report is to develop entrepreneur skills and awareness. For
this purpose the product of leather balls for cricket and hockey. This
project provided me with the knowledge of various aspects of launching
a new product in this era. I have tried my level best to make this report
most precise, relevant and in systematic manner.

Time has no passage to mark its existance but we have language

to express. No doubt that the word Thanks is very small to express my
hearly feelings.
I sincerely express my gratitude and warm regards to our Prof.
Anish Durvesh for his valuable suggestion and guidance during my
work.
Last but not least, I am indeed thankful to my parents for their
moral support, encouragement and involvement in my mission and
other friends for their help and co-operation.

Rahish R. Mahida.

SR. NO.

NAME OF THE TOPIC

PAGE NO.

Introduction...................................................................01

Project at a glance..........................................................02

Implimentation schedule..............................................03

Partners background....................................................04

Justification of location.................................................06

Basis and presumption..................................................09

Pro. details......................................................................10

Details of Raw material..................................................11

Use of application of product.........................................12

10

Market Potential.............................................................13

11

Process outline...............................................................14

12

Capacity utilization........................................................16

13

Financial aspects............................................................17

14

Fixed capital details.......................................................18

15

Working capital details..................................................20

16

Total capital investment.................................................21

17

Sources of finance..........................................................22

18

Interest on investment or capital..................................22

19

Depreciation schedule...................................................23

20

Cost of production.........................................................23

21

Sales turnover................................................................24

22

Annual fixed cost...........................................................24

23

Profitability analysis......................................................25

24

BEP Analysis..................................................................26

25

Ratio analysis.................................................................27

26

Projection.......................................................................28

27

Future plan.....................................................................29

S.S.I. is economic strength of country. This fact is realised by India

after independence. But in recent years, the S.S.I. of India has
undergone rapid changes and had flourished in India in early
times. S.S.I. provides Raw Material to large scale units and to be
partner of success. The most important role of S.S.I. in Indian
economy is as greater of employment and equal distribution of
income.
ROYAL Balls Ltd. is one of the unit of S.S.I. The purpose of this
unit is to create cricket and hockey balls from leather. Cricket and
Hockey are the two games which are very popular and played not
only in our country but all over the world. After partition of the
country in 1947, a large number of workers migrated to India.
They subsequently settled down in Meerut and Jalandhar, where
they started manufacturing cricket and hockey balls.

Name of the unit

Royal Balls Ltd.

Products Name

Cricket & Hockey balls

Address of the office

G.I.D.C. Metoda,
Plot No. 6

Form of the unit

Partnership

S.S.I. registration no.

Applied for

Location of the unit

ROYAL Entertainment Balls Ltd.

G.I.D.C. Metoda, Plot No. 6,
Rajkot.

Cost of production

1, 12, 22, 307

Partners name

Ashish Boghara
Happy Raiyani
Jayram Patel

Subsidy registration no. -

Applied for

BEP

53.068 %

Sr. No.
1
2
3
4
5
6
7
8
9
10

Particular
Collection of data
Preparation of project report
Local formalities
Selection of site
Construction of building
Machinery installation
Recruiting personnel
Selection of procurement
Receipt of Raw material
Obtaining power and water connection

Period
2 months
1 month
1.5 month
1 month
3 month
1 month
1 month
1 month
15 days
1.5 months

11

and installation of power facilities

Registration of S.S.I.

1 month

Total

24.5 months

PARTNER 1

Name

Ashish Boghara

Age

20

Address

bhojrajpara, Gondal

Specialized subject-

Research

Present activity

Promoter of the Star Engineers

Income

1,00,000

Financial contribution

40%

Responsibility

Research and Development

Experience

Fresh

PARTNER 2

Name

Happy Raiyani

Age

20

Address

choksinagar, Gondal

Qualification

B.B.A.

Present activity

The M.D. of Star Engineers

Income

50,000

Financial contribution

30%

Responsibility

Production Engineer,

Finance Dept. & HRM

Experience

3 years

Name

Jayram Patel

Age

20

Address

kothi compound,Rajkot.

Qualification

B.B.A.

Present activity

Income

PARTNER 3

Financial contribution

30%

Responsibility

Marketing Head, Chairman

Experience

Site of selection is an important activity. Because a good location

may reduce the cost of production. Locating a business involves a
large relatively permanent investment. If the site selection is not
proper, all the money spent on factory building machinery and
their installation will go in waste and the owner has to suffer a
great loss. Therefore, the site for the factory should be selected
very carefully.
According for our purpose industrial proposition at Metoda, GIDC,
Taluka Rajkot, District Rajkot, Gujarat state is selected by us.
All infrastructure facilities available the same places are as follows.
A

TRANSPORTATION
The purposed factory will be at Metoda, Rajkot well
connected by three modes of transportation, Railway,
Roadway & Airway. The factory site is in proximity with the
Rajkot Railway Junction and Domestic Airport, the national
highway 8B and the state highway Ahmedabad-RajkotKandla.
The nearest international city is Mumbai 45 minutes
flying time and the nearest major port is Kandala 200 km.
by road. So all kind of transporting vehicle, truck, train,
ship, plane etc are available not to far from the site and
hence our location in respect of to transport availability for
the product concerned is the most suitable one.

AVAILABILITY OF RAW MATERIAL

Mainly for our product leather is needed and other raw
materials which are in detail given later in this report. All
those raw materials are available at Ahmedabad, Bombay,
and Delhi & Chennai. Most of the raw materials are
available at Ahmedabad, which is hardly 235 kms away
from our site. As stated earlier, the transportation agencies
services are easily available at competitive price from Rajkot
which

minimizes

the

cost.

So,

procurement

and

transportation of raw materials is not a problem.

C

MAN POWER
All manufacturing concern small or big always depends on
available man power skilled, unskilled, and semiskilled. We
have also given a thought to this matter and found that ours
is an area cheep labour is easily available in our project. We
had 60% workers laborers type and 40% skilled type. Two
options are available with as for recruiting the skill
employees, first the Saurashtra University, IIT near Aji Dam
and B.K. Modi near Aji Dam in Rajkot and the Ahmedabad
city which is hardly 235 kms away from out site.

MARKET
All products manufacturers always think about market of
this product. Our nearest and main markets are Bombay,
Delhi, Ahmedabad, Rajkot, Baroda, Jamnagar, Mahesana
etc. To our pleasure, some big parties have afforded us to
purchase whole of our manufacture lost in full quality and

also cricket and hockey balls are needed by them. So, there
is no problem in marketing.
E

WATER FACILITIES
Water is not required for product purpose. It is required
only for domestic purpose. Arrangement will be made at the
site by installing tube well.

SOURCES OF FINANCE
Finance is oxygen or blood for the industry and thus the
procurement of finance is very vital. Proximity of the site, to
the Rajkot city makes the source of finance closes to the
concern.

The

various

financial

industries

like

the

nationalized banks, commercial banks, GSFC branch are

located in Rajkot city near to the site of the factory.
G OTHER FACILITIES
Along with all the above mentioned facilities, other facilities
like, the insurance cos, tele-communication, medical
services, post-office services etc. are also available in the
near by area.

The profit is drawn on the basis of following presumption.

1

No. of shifts

2 shifts

Working days

300 days

Working hours

16 hours

The cost of land is based on the prevailing rates at

Metoda GIDC, Rajkot.

The interest rate and depreciation rate are fixed as

per the government specification.

The salary and wages have been decided on the basis

of local markets.

Break Even Point has been calculated on the full

capacity utilization basis.

Generally, these products are based on the leather, thread, cork,

polishes and wool are also used with leather in production on
cricket and hockey balls. The purpose of unit is to produce
qualitative product in the less cost.
To make proper and qualitative ball, proper shape, proper weight,
qualitative leather, initial stitching etc. are needed. Because these
things are help the bowler in delivery and spinning the ball. In this
unit, four types of cricket balls are produced according to quality.
The hockey and cricket balls are duco finished. There is also the
demand for unglazed balls. So, unglazed balls are also produced in
this unit.

Raw materials is one of the important things for production. If

there is no raw material then there would be no product of this
unit. Obtain most of its raw material from the local market.
The important raw materials required for the manufacture of
cricket and hockey balls are leather, thread, cork, polishes and
wool. Fortunately all the items mentioned above except cork are
indigenously available. Cork will have to be imported. Thus, the
raw materials are available in open market in Gujarat. So, unit
does not find any difficulty in collecting raw materials.

Cricket Ball (EXS1275)

Description:
Squeezable cricket ball. Minimum
quantity - 500. Please check current
stock availability.
Product Size: 70 x 70 x 70mm
Print Area: 40 x 40mm

Prices inclusive of print in one position. Screens are charged extra at 50 Rs per
colour, per position.

Cricket is the most popular game in our country. While Hockey is

our national game and it is also popular. But compare with the
cricket, popularity of the hockey is less.
A ball is an important thing for these two games. We can say that
ball is blood for cricket and hockey. This unit produce qualitative
balls.
Care is to be taken to see that properly tanned leather is selected
and correct pattern cutting delivery and spinning Stitching also
provides the main strength to the balls. So, the balls are stictched
clamped in a special mould holding clamps to give the desired
shape of the balls. An attractive polish is needed. Hockey and
cricket balls are duco finished. Unglazed balls are also produced.
These balls re qualitative, strong, attractive and cheap.

Hockey and cricket, these two games are very popular. These
games are played in all over the world. So, cricket and hockey balls
are demanded product.
Looking to the internal and increase in export demand, there is a
good scope for starting new manufacturing units in different parts
of the country. Meerut, Jalandhar are the starting place or city,
where a large number of workers started manufacturing cricket
and hockey balls.
The demand for quality goods is increasing hence there is a scope
for another 10 to 15 new units every year. The raw materials
required for the manufacture of cricket and hockey balls are
indigenosly available. Even in rural areas, these games are very
famous.

The heart of any unit is manufacturing department. This

department is also called lubricant oil of any unit. The main aim of
any industry is to manufacture something extra-ordinary which
attracts the customers. Let us see the process of manufacturing of
this unit.
Alum tanned leather is used in the manufacture of
hockey balls, while vegetable tanned leather is used in
manufacturing cricket balls. Properly tanned leather
is selected and correct pattern cuting is adopted.
Zicronium tanned leather is used for the manufacture
of first quality cricket balls. As regards other raw
materials such as thread, cork, polish and wool the
quality of material used depends upon the quality of
balls required to be supplied.
The cutting of pieces can be done manually as well as
by mechanical dicking process. Two sections are
stitched together in seamless stich which runs inside
the leather and are called cups. It should be nated
that there side not be more than 25 to 26 stitches in
the manufacture of joint otherwise the stitches might
tear the leather. Different types of raw materials are
used for different types of raw materials are used for
different quality for ex. For cheaper varieties the
mixture of rubber and cork mixtures are usd. Now dry

the balls with the help of machines. Now press the

cup in such a way so that wrinkless do not appear in
the cup. Now dried cups are stitched by skilled
workers. The skilled workers are to be very careful
when making the final stitching in two parallel rows.
Because it helps the bowler in delivery and spinning
the ball. After stitching, electrically heated and good
polish is needed. There is also demand for unglazed
balls.

The total capacity installed is 25,000 balls per month. In the first
year, 50% of the capacity shall be utilized i.e. the month
production of balls will be 15,000. In the second and third
capacity utilization will be 60% and 70% respectively.
Actually the capacity of the unit is alwys fluctuating. At the time of
worldcup or cricket tournament, the demand of cricket balls will
be increased. So unit can produce more balls at that time.

LAND, BUILDING & FURNITURE

Sr. No.
1
2
3

Particular
500 sq.mtrs. of Land of Rs.600 per sq.mtr.
4920 sq.feets of building of Rs.250 per sq.feet
Furniture
Total

Cost
3,00,000
12,30,000
1,00,000
16,30,000

MACHINERY AND EQUIPMENTS

Sr. No.
1
2
3
4
5
6
7

Particular
HP Motor (having capacity of 24 dozens balls)
Power operated press
Automtic injection moulding machine
Stamping press
qty. 3
Automatic mixture machines with electrical (2)
Electric drying oven
heated 2
Electrification, installation and transportation

8
9
10

charges
Other equipments
Stitching frames
Other office equipments
Total

Cost
14,00,000
17,00,500
10,00,000
9,00,000
8,75,000
7,50,000

3,00,000
54,000
20,500
70,00,000

STATEMENT SHOWING TOTAL FIXED COST

Sr. No.
1
2
3
4

Particular
Land
Building
Furniture
Machinery & Equipments
Total

Cost
3,00,000
12,30,000
1,00,000
70,00,000
86,30,000

RAW MATERIALS

5,50,000

SALARY AND WAGES OF TECHNICAL STAFF AND OFFICE

STAFF

Particular
Qty.
Purchase sales manager
1
Production manager
1
Supervisors
2
Maintanance Engineers
1
Accountant
1
Store Keeper
1
Computer Operator
1
Skilled workers
10
Unskilled workers
15
Total Salary
+ 20% Benefits ( Labour Act )
Total
3

UTILITIES

Electricity
Fuel
Packing
Total

14,000
10,000
7,000
31,000

Per Person Value

8000
8,000
8000
8,000
2500
5,000
4000
4,000
3500
3,500
2000
2,000
2500
2,500
2400
2,4000
1200
18,000
75,000
15,000
90,000

OTHER CONTINGENT EXPENSES

Postage & Stationary

Transportation
Sales Expenses
Repair and maintanance
Insurance
Telephone
Advertising and publicity
Total

STATEMENT SHOWING TOTAL WORKING CAPITAL (MONTHLY)

Raw material
Salary & Wages
Contingent Expenses
Utilities
Total

2,000
20,000
5,000
2,000
5,000
6,000
5,000
45,000

5,50,000
90,000
45,000
31,000
7,16,000

WORKING CAPITAL REQUIREMENT ( FOR 3 MONTHS )

Rs. 7,16,000 3

Fixed Capital
Working Capital
Total

= 21,48,000

86,30,000
21,48,000
1,07,78,000

Particular
Machinery
Building
Land
Furniture
Working Capital
Total

Bank Loan
Owned Capital
IDBI
Total

Owned (35%) Bank (25%)

IDBI (40%)
24,50,000
17,50,000
28,00,000
4,30,500
3,07,500
4,92,000
1,05,000
75,000
1,20,000
35,000
25,000
40,000
7,51,800
5,37,000
8,59,200
37,72,300
26,94,500
43,11,200

13%
10%
16%

3,50,285
3,77,230
6,89,792
14,17,307

Machinary
Building
Land
Furniture
Total

Total requirement of working capital

Department of Land
Department of Building
Department of Machinary
Department of Furniture
Interest on Bank Loan
Interest on Owned Capital
Interest on GSFC Loan
Total

15%
10%
10%
10%

10,50,000
1,23,000
30,000
10,000
12,13,000

85,92,000
30,000
1,23,000
10,50,000
10,000
3,50,285
3,77,230
6,89,792
1,12,22,307

Yearly production : 15,000 12 =

1,80,000

Selling price Rs. 95 per piece

Total annual sales volume :
1,80,000 95 =

Dep. on Machinary
Dep. on Building
Dep. on Land
Dep. on Furniture
Int. on Bank Loan
Int. on GSFC Loan
Int. on Owned capital
40% on salary & wages
40% other contingent exp.
Total

1,71,00,000

10,50,000
1,23,000
30,000
10,000
3,50,285
6,89,792
3,77,230
4,32,000
2,16,000
32,78,307

Sales Volume

1,71,00,000

- Cost of Production

1,12,22,307
----------------

Earning before interest & tax

58,77,693

- Interest on capital

14,17,307
----------------

Earning before tax

44,60,386

- Income tax at 35%

15,61,135
---------------28,99,251

BEP =

Fixed Cost
100
Fixed cost Profit

32,78,307
100
32,78,307 28,99,251

32,78,307
100
61,77,558

0.53068 100

53.068

ROI

Profit
100
Total Invest

28,99,251
100
1,07,78,000

26.8997

26.9 %

Net Profit =

Profit after interest and tax

100
Sales

28,99,251
100
1,71,00,000

16.95 %

Statement showing sales for the next five year

Particular
Qty. Sold

Year-1
15,000

Year-2
18,000

Year-3
21,000

Year-4
24,000

Year-5
30,000

(PM)
Qty. Sold

1,80,000

2,16,000

2,52,000

2,88,000

3,60,000

95

95

95

95

95

17,100

20,520

23,940

27,360

34,200

(PA)
Selling Price
(PM)
Total sales
volume

ROYAL Entertainment Balls Ltd. has specified future plans to

follow. It has fixed goals to be achieved in future. Certain future
plans of this unit are as under.
Company wants to increase its sales and profit and be a
large scale industry.
Company wants to start the production of another balls,
such as footballs and volleyballs. Because after cricket,
football is very famous game.
Company wants to wider its network in whole country. For
it they are deciding to establish branches in most of the
state in India.
Thus, this company has bright future vision and it wants to extend
its coverage.