Presentation on mineral water plant

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

1. Presented by-
NILDHWAJA RAJA
SANTOSH SINGH
PRESENTATION ON MINERAL WATER
PLANT

2. IDEA GENERATION
The idea of establish my own mineral water plant comes
when i face the following problems-
The quality of water was not good
High charges for providing services
Their supply chain management was not good
Their pricing strategies was also not good

3. 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.

4. PROJECT APPRAISAL
Environmental 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.

5. Market analysis-
Analyzing the competitors to know their-
I.strategy
II.competence
III.pricing strategy
IV.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.

6. I found following competitors in market-
1.Balaji RO water supply
2.Prashant RO water
3.Shubham water supplier

7. Strength
Have more experience of work
Have a presence in the market
Have the knowledge about whole area of Bokaro
Weakness
Quality is not good
Management of work is also not good.
Behaves not as a professional
The education is less.

8. 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.

9. 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.

10. 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).

11. PROJECT COST
Start-up Recuirement Cost
MACHINERY COST- include jar & material cost 7,00,000
BUILDING COST 2,00,000
ISI CERTIFICATION COST 50,000
WORKING 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.

12. 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

13. RETURN ON INVESTMENT
Interest 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/-

14. 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/-

15. 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/-

16. 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.