Professional Documents
Culture Documents
Business Model
for Jute Products
Presented by:
61 Anshari Naved Abdul Vahid
67 Dhuri Swapnil Manohar
74 Jain Ashish Ganpathlal
77 Kadam Mandar Prabhakar
82 Khedekar Pooja Shravan
Objectives:
For creating pollution free environment as jute is eco-friendly
products.
Jute Bags
Jute Folders
Mens Handbags
Market and Demand Aspects:
Every responsible citizen considering the black future of ours next
generation shall stop using plastic carrier bags used for shopping as
much as possible.
Plastic bags in general take anywhere from 20 to 1000 years to
breakdown in the environment. The natural alternative is jute bag.
Decorated jute bags and shopping bags are very much in demand both
for domestic and international market.
With the increase of population the scope of trade and industry is also
increasing. As the bags are an essential commodity for human, so the
demand of the product is growing day by day.
The demands of the product remain consistent through out the year.
So, it is presumed that there is a good scope for starting of such type of
industry with a huge export potential.
Government Bodies:
Paper Bags:
- Manufacturing process of paper bags results in plenty of leftover waste.
- Environmental Damage
- They are meant for short term usage.
Cotton Bags:
- They are costly as compared to jute.
- Scarce raw material
Printing
The salary and wages of staff has been taken as per present market rate.
Cost of Assets, Raw Materials and Selling price of Finished product are
those generally obtained at the time of preparation of Business Model.
The rate of interest on Bank Loan may vary from time to time.
Since the project is small the financial calculation has been done for one
year only.
Financial Aspects:
Suggested Location
Dahisar (East)
Mira Road (East)
2. Machinery / Equipment
Particulars Amount
Monthly Other Expenses 59,400
Margin Money for Working Capital 171,700
Total 231,100
Financial Aspects:
Total Capital Investment
Particulars Amount
Total Fixed Capital 112,400
Total Working Capital per month 231,100
Total 343,500
Means of Finance
Sr. No. Particulars Total Amount
1 Promoter's Contribution (35%) 120,225
2 NCJD's Interest Free Loan (20%) 68,700
3 Bank Loan (45%) 154,575
Total 343,500
Financial Aspects:
Profitability Analysis
Sr. No. Particulars Value (Rs)
a Sales Revenue 6,180,000
b Cost of Production
Raw Material 3,417,600
Utilities 30,000
Salaries & Wages 1,176,000
Rent 240,000
Repairs & Maintainence 14,400
Adminsitrative Overheads 54,000
Selling and Distribution Expenses 180,000
Electricity 138,000
Depreciation @ 10% 11,240
Interest on Term Loan @ 12.50% 19,322
Interest on Proprietor @ 10% 12,023
Total (b) 5,292,584
c Operating Profit (a-b) 887,416
d % of Profit on Sales 14.36
e % of Profit on Investment 258.35
Financial Aspects:
Break Even Point Analysis
(75% Capacity Utilisation)
Sr. No. Particulars Value (Rs)
a Variable Cost:
Raw Materials 3,417,600
Utilities 30,000
Selling and Distribution Expenses 180,000
Total (a) 3,627,600
b Semi-Variable and Fixed Cost
Salaries & Wages 1,176,000
Repairs & Maintainence 54,000
Adminsitrative Overheads 54,000
Rent 240,000
Selling and Distribution Expenses 180,000
Depreciation @ 10% 11,240
Interest on Term Loan @ 12.50% 19,322
Interest on Proprietor @ 10% 12,023
Total (b) 1,746,584
c Sales Realisation 6,180,000
d Contribution (c-a) 2,552,400
e B.E.P = b/d*75 47.90
Marketing Strategies:
Word of Mouth:
Comprehensive Website:
Social Marketing:
Direct Marketing:
Major Festivals:
Online Shopping Sites:
NGO Tie-ups:
Local Tie-ups:
Corporate Gifting:
Conferences and Seminars:
Future Scope:
We will be focusing on more on product segmentation like introducing
new products wallets, water resistance bags, designers ladies handbags
etc.
Jute is
Natural Fibre
Biodegradable
Sustainable
Stylish
Reusable
Thank
You