Presented by-

NILDHWAJA RAJA

SANTOSH SINGH

PRESENTATION ON MINERAL WATER PLANT

IDEA GENERATION

The idea of establish my own mineral water plant comes when i face the following problems-

The quality of water was not goodHigh charges for providing servicesTheir supply chain management was not goodTheir pricing strategies was also not good

So this way the idea of establishing my own mineral water plant comes in my mind.

I also discussed this with my society members to know their perception about the plant i.e they will support it or not.

Because they were also facing the problems like me and were seraching for the best alternatives.

PROJECT APPRAISALEnvironmental analysis- As I want to establish my own mineral water plant in

Bokaro,Jharkhand , so first I survey the area of Bokaro , mainly I am focusing the rural area of Bokaro because in this segment there is more potential as compare to urban area of BOKARO.

Second think which attracts me towards rural area of Bokaro is that the people's financial condition is good but their living life style is not good but they want to change it.

So this way i found the gap in water supply market.

Market analysis- Analyzing the competitors to know their-I. strategy II.competenceIII.pricing strategyIV.quality of their product etc. So in market analysis first I has to know about

competitors which are present in the mineral water supply business.

I found following competitors in market-1. Balaji RO water supply2. Prashant RO water3. Shubham water supplier

Strength Have more experience of workHave a presence in the marketHave the knowledge about whole area of Bokaro WeaknessQuality is not goodManagement of work is also not good.Behaves not as a professionalThe education is less.

SWOT OF MY PROJECT

Strength Threats ISI certified quality of water * New competitors Time management * Price fluctuation Management of work * government policy Good relationship with customers * Obsolete technology Fixed price (good price strategy)

Weakness Opportunity Have no experience * Can cover more market in future At start, there will be difficulty to get * Can also have technology to cover customers. Bottle and packaging market Capacity of plant is low at start. *Can have new technology Have no technology for bottle and pouch packaging.

Financial analysis- cost of plant- The plant cost depends on size of plant. Size-At the beginning stage , I decide to start it with

minimum capacity to fulfill the demand of water of customers across Bokaro region.

Demand analysis-To know the demand I meet with the water suppliers in Bokaro to know the demand of water.

Target -500 jugs water supply daily 1 jug =20 liter So, 500*20=10000 liter of water (daily) Working hours=8 Shift=1 So, plant capacity should be=10000/8 =1250 ltr/hour But in market , minimum capacity plant available is 2000

ltr/hour(The capacity of plant is also expendable).

PROJECT COST

Start-up Recuirement Cost

MACHINERY COST- include jar & material cost 7,00,000BUILDING COST 2,00,000ISI CERTIFICATION COST 50,000WORKING CAPITAL 50,000

TOTAL COST 10,00000

Note-I have my own land for running this business, so rent will not have to be paid.

Sources for fund- As we know that for running the business , the bank can

provide loan up to 75-80% of total cost of business at a interest rate of 12% per annum.

75% of 10 lakhs = 7.5 lakhs The rest amount will be my own capital. Rest amount = 2.5 lakhs

RETURN ON INVESTMENTInterest paid to bank=7.5 lakhs*12/100 =Rs 90000/-(per annum) =90000/12 =Rs 7500/-(per month) Principal amount paid to bank=7.5 lakhs/72 =Rs.10500/- (per month) Bank EMI=7500+10500=Rs.18000/-

Monthly cost on operation, Let, total no. of customers=150, and every customer takes at least one jar of water daily. So, transportation cost=150*4= Rs. 600 (daily) =600*30=Rs.18000/- (per month) Labour cost (for 3 workers) = Rs. 25000/-(per month) Electricity cost=Rs. 5000/- (per month) Maintenance and material cost =Rs. 4000/-(per month)

Total operation cost= 18000+25000+5000+4000 =Rs. 52000/-So, Total monthly cost=bank emi + operation cost=18000+52000 =Rs. 70000/-

Selling price of 1 jar= Rs. 25/-

No. of jar sold daily=150

So, daily revenue=150*25=Rs. 3720/-

Monthly revenue = 3720*30 = Rs.111600/-

So total profit in a month=Rs.111600 - Rs.70000 =Rs. 41600/-

Total Profit in 1 year= 41600*12 = Rs.499200 =Rs 5 lakhs (approx.)So, in the two year, the total amount of investment will be

come back.