CONTENT

1. Executive Summary ObjectivesMissionKeys to Success.

2. Company SummaryCompany OwnershipCompany Locations and Facilities

3. Products and ServicesProductTechnologyFuture Products and Services

4. Market Analysis SummaryMarket SegmentationTarget Market Segment StrategyMarket TrendsDistribution PatternsMain Competitors

5. Strategy and Implementation SummaryMarketing StrategyPricing StrategyDistribution PatternsSells Forecast

6. Organizational Structure

7.  Financial PlanCost SheetBreak-even AnalysisValue Chain

8. Risk ManagementRisk Associated with BusinessRisk Prevention 9. Beneficiaries.

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1. EXECUTIVE SUMMERY M&K rubber Co. Ltd.is owned by the Mampi dey & Koushik Malakar and it is in its initial level. Not yet started its operation but in recent future it will be establish in Panchaboti,Simna West Tripura. We are about to start planting with 1.22 Acer area each kani will consist 80 Rubber plants.Area :- 1.22 AcerPlants can be rooted: - 80/.4 acerLatex Produce:- 250 Kg/.4 Acer/MonthRecent Rubber Sheet Price: - Rs. 150/kgWeight of 1 Rubber Sheet: - 700- 660 gramLabor wage rate: - Male Rs.200/day, Female: - Rs.160/day

OBJECTIVE

Profit making. To increase the size of the land for more plantation. To nurture the rubber plants with fertilizers for reduce risk. To utilize labors optimally.

MISSION

M&K rubber Co. Ltd is committed of becoming profit making company.

KEYS TO SUCCESs

Establish an effective business model such as internal business processes, produce internally vs. outsourcing strategy, financial management control and quality control mechanism.

Establish a strategic distribution channel. To take care customers as well as employees.

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2. COMPA NY SUMMARY

OWNERSHIP

Company owned by both of the partners Mr. Koushik Malakar and Miss. Mampi Dey in equal share.

 

Company Locations and Facilities

Panchaboti, Simna, West Tripura PO-Ishanpur, Pin 799212

Our company will provide some of its Profit margin to the NGOs or for any other social welfare activity if needed.

PRODUCTSM&K Rubber co. Ltd. mainly focus on planting rubber and after certain years when Rubber tree became mature then we may procure latex from the rubber tree and process those latex into rubber sheets. We can sell those sheets to direct rubber industries or can sell it to Rubber Board as per the fluctuate price of that day.

TECHNOLOGY For better production from the rubber tree we will use fertilizers twice in a year To process the latex into a rubber sheet we have to install two machines.

FUTURE PRODUCTWe were thoughtful to process the oils from rubber seeds, moreover we can create our own nursing house of Rubber plants by using and processing the rubber seeds.

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3. MARKET ANALYSIS SUMMARY The market segment for our rubber sheets are rubber board and rubber industries.

 TARGET MARKET SEGMENT STRATEGY

We will keep eye on the prices of rubber sheets, and based on a good amount we will sell our sheet to industries or rubber board.

Market trends of Rubber Sheet price

Tab. O1 From 10th March 2014 till 25th Price/100kg

10th 11th 12th 13th 14th 15th

Rs. 14650 Rs. 14700 Rs. 14700 Rs. 14700 Rs. 14800 Rs. 1490017th 18th 19th 20th 21th 22th

Rs. 14900 Rs. 14900 Rs. 14900 Rs. 14850 Rs. 14750 Rs. 1470024th 25th 26th

Rs. 14750 Rs. 14800

Tab. 02 Average Market Price Rubber Sheet Per 100kg

YEAR Price (Rs)2000-01 30362001-02 32282002-03 39192003-04 50402004-05 55712005-06 66992006-07 92042007-08 90852009-10 114982010-11 19003

We have given data from 2000-01 to 2010- 11, from the above table we can analyze that the average price of Rubber sheet per 100 k.g. is increasing yearly. So we can assume that there is intensity to increase the rubber sheet price in future also.

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SourceTable 01- http://rubberboard.org.in/rubberprice.asp?url=earlyrubberprice.aspTable 02- http://rubberboard.org.in/YearlyPricesPage.asp

DISTRIBUTION PATTERNS

Our company will distribute its sheets to rubber boards and industries we are not going for retail sell most probably we will transport the sheets by public vehicles and for outside of Tripura we can use transport of logistic companies. Distance of Rubber Board to our Business set up is 20km and 30k.m. for Agartala.

Main Competitors

Tripura is second rubber producing state of India and the market of rubber sheet is comparatively high .more over Tripura do have good climate for rubber cultivation so there is huge competition as well as opportunities too.

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4. STRATEGY AND IMPLEMENTATION SUMMARY

Business Strategy

Our business set up will set up in a remote area where price of land is less than land price of that of any town area.

Availability of cheap labors. Using good quality fertilizer.

Though business set up setting up in a remote area we can transport easily to capital

city within an hour.

Pricing Strategy

Our pricing strategy will be depending on the current market price of rubber sheets. During March the prices are fluctuating between Rs.14000- 15000 / 100 kg. So we will

sell our product on its market price.

Sells Forecast

As rubber sell will start after 7 years from the current year the sell forecast will be from 2021

Per 0.4 Acer Latex Production: - 1.22 Acer area x 250Kg/month = 750 Kg Latex produce in a Month

If I consider todays price then, 750 kg x Rs150 = Rs. 1, 12,500(One Lakh twelve thousand five hundred rupees) per month income

Now if we go for per Year production then, Rs.1, 12,500 x 12 months = 13, 50,000 ( thirteen lakh fifty thousand rupees) is our per year income. So the sell forecast will be

2021 2022 2023 2024 2025 2026RS. 1350000 Rs. 1350000 Rs. 1350000 Rs. 1350000 Rs. 1350000 Rs. 1350000

*excludes any expenses.

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5. ORGANIZATIONAL STRUCTURE

As our company’s operation is not started yet no management is build up, so we i.e. Mr. Koushik Malakar and Miss. Mampi Dey are the two members will run this business but when our operation gets started will recruit labors future use.

6. FINANCIAL PLAN

Land value: - 5 lakh/.4 Acer

Set up a Building: - for installing machines Rs. 60000. 140 sq. ft

Rubber Plant: - 240 no. Price: - Rs. 80/plant

Taping Tools: - 02, Price: - 240/ tool

Bowl: - 240, Price: - Rs6/ bowl

V: - 240, Price: - 0.40paisa/ Piece

Machine: - 01 set, Price: - Rs. 60000(Lining machine, Press Machine)

Shovel: - 02 Price: - Rs 300/ piece

Chopper: - 02, Price: - Rs. 130/Piece

Fertilizer: - 80 kg. /.4 Acer (twice a year) Fertilizer like ROK Price- Rs. 12/kg, Uria- Rs. 8/kg, MOP-Rs. 9/kg in ratio of (60:25:15)

Lime: - 06 kg Price- 20Rs./kg

Labor: - 2 labor wage: - Male Rs200/day Female Rs.160/day

Acid:- Rs. 40/ liter

Tray: - 03 Price; - 180/piece

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COST SHEET

EXPENDITURE SECTOR

1ST YEAR 2ND YEAR

Fixed capital Land

building machine & tools

3X5 lakh +25,000

1x52000+480+1440+600+260+540+96

0

total 15,79,030

Recurring cost Rubber plant

Fertilizer Lime loan

240X80= 19,200 844X3X2=5,064

6X 20= 1201,50,000

844X3X2=5,064 6X 20= 120

1,50,000

total 1,74,384 1,55,184

Workers For planting

For maintenance transport

200X 15x2= 6000 200X 50=10,000

5000

200X30+200X20= 10,000+1000+

total 21000 11,000

Total expenditure 17,74,414 19,40,598

Total income 0 0

Profit/ loss -17,74,414 -19,40,598

EXPENDITURE SECTOR 3RD YEAR

4TH YEAR

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Fixed capital Land

building machine & tools

0 0

total

Recurring cost Rubber plant

Fertilizer Lime loan

844X3X2=5,064 6X 20= 120

1,50,000

844X3X2=5,064 6X 20= 120

1,50,000

total 1,55,184 1,55,184

Workers For planting

For maintenance transport

200X30+200X20= 10,0001000

200X30+200X20= 10,0001000

total 11,000 11,000

Total expenditure 21,06782 22,72,966

Total income 0 0

Profit/ loss -21,06782 -22,72,966

EXPENDITURE SECTOR

6TH YEAR 7TH YEAR 8th YEAR

10

Fixed capital Land

building machine &

tools

60,000 0 0

total 60,000

Recurring cost Rubber

plant Fertilizer

Lime loan

844X3X2=5,064 6X 20= 120

1,50,000

12857X 2=25714

1,50,000

12857X 2=25714

1,50,000

total 1,55,184 1,75,714 1,75,714 Workers

For planting

For maintenan

ce transport

200X30+200X20=

10,0001000

200X2X130=52000

10,000

200X2X130=52000

10,000

total 11,000 62,000 62000 Total expenditure 40,65,334 43,03,048 45,40,762

Total income 0 13, 50 000 27,00,000 Profit/ loss -40,65,334 -29,53,048 -18, 40,762

EXPENDITURE SECTOR 9th YEAR 10th year

Fixed capital 0 0

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Land building

machine & tools total

Recurring cost Rubber plant

Fertilizer Lime loan

12857X 2=25714

1,50,000

12857X 2=25714

1,50,000

total 1,75,714 1,75,714 Workers

For planting For maintenance

transport

200X2X130=52000 10,000

200X2X130=52000 10,000

total 62000 62000 Total expenditure 47,78,476 50,16,190

Total income 40,50,000 54,00,000 Profit/ loss -7,28,476 3,83,810

EXPENDITURE SECTOR 11th yearFixed capital

Land building

0

12

machine & tools

total

Recurring cost Rubber plant

Fertilizer Lime loan

12857X 2=25714

total 25714Workers

For planting For maintenance

transport

200X2X130=52000 10,000

total 62000 Total expenditure 87,714

Total income 13,50000+2,96,096 Profit/ loss 17,76,666

BREAKEVEN POINT

Total expenditure up to 9th year is 43,03,048

And income is 13, 50 000 thus the loss is= Rs.7,28,476, and per month income is 1, 12,500.

7,28,476/1,12,500= 6.47 i.e. means 7thmonth (approximately), profit will starts after that point.

VALUE CHAIN ANALYSIS

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So, Total profit/ sheet=Rs. 35 (Rs. 105 – 70Rs)

7. RISK MANAGEMENT

Risk Associated With Business

Environmental factor like, Heavy rain, thunder.

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For 1 sheet we need 800 ml latex

So, the cost is Rs. 64 (1 liter = Rs.80)

We need 50ml acid in a single tray.

Cost of acid to be added with latex is Rs.2 (Rs.40/ liter

So, 64+2= Rs. 66

Machine cost Rs. 4 /Sheet So , 66+ 4= Rs. 70

• Total production cost per rubber sheet Rs. 70 for 700 gram.

• Market Price is Rs. 105

Change in Govt. Policy.

Other factors like, catching fire.

Risk Prevention

To avoid heavy rain we will cut branches before monsoon period.

To avoid risk of fire caught we will make fire lines.

Compensation from Insurance Company only on damage on natural calamities.

SOWT ANALYSIS

Strengths

We are getting cheap labour, as labor is available.

Land value is less

Rubber sheets is in demand.

We set up in remote area though it is near capital city and the distance is only of 30K.M.

Transportation cost is less.

Weakness

Production is less so we cannot export our product outside then the transport cost will be higher in compare to the profit which we will get.

Land size is less so the production is less.

Opportunity

After 10 year we are thinking about to buy more lands for plantation.

We might use the Rubber seeds to produce our own rubber plants.

We might make our own nursery house and sale plants.

Threats

Competitors are many.

Environmental and other factors.

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The Price is fluctuating daily, so cannot determine the price on our own.

8. BENEFICIARIES

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LaborsNursery houses.

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