Preface

For

socio

economic

growth

and

balanced

structural

development, small-scale industries are a very important tool. It is

considered highly for the creation of employment opportunities as
well as development of entrepreneur skills. The better use of scarce
financial resources and appropriate technology is also ensuring by
the small-scale industries.
In the growth rate of the country, the small scale industries
give vital contribution. Therefore it is essential to understand
management and working of small-scale industries as a student of
business administration.
The subject of Entrepreneurship and management of Small
Business has been included by Saurashtra University in Third Year
B.B.A. So I have prepared this project report on one of the smallscale industries product. That is paper dish and napkin.

Acknowledgement
This is my great pleasure to submit this Product Project
Report. I am thankful to all the persons who have helped me for the
preparation of this project report.
First of all I would like to thank Dr. Mita B. Vora who had guide
me for the preparation of Product Project Report.
I am also thankful to all those who had helped me in one or
another way during preparation and computerization of this Project
Report.

Place

: Rajkot

Academic year : 2005 06

(I/C Director)
__________________
Mr. John Mathew

Declaration
I undersigned, Jagdish V. Khimsuriya a student of Third Year
B.B.A. at T.N. Rao College of I.T. & Management, hereby declare
that the project work presented in this report is my own work and
the report has been prepared under the guidance and supervision
of our co-operative Dr. Mita B. Vora.
This work had not been submitted before this to any other
university with an examination purpose.

Place

: Rajkot

Academic year: 2005 06

_________________
Sign of the Student

Project Profile
Name of the Unit

: Blue Sea Paper Industry

Brand Name

: Dolphin Paper Dish & Napkin

Address of Unit

: Metoda G.I.D.C.

Form of the Unit

: Partnership Firm

Size of Organization

: Small Scale Industry

SSI Registration No.

: Application has been made

Accounting year

: 2005 06

Business carried out by Unit : Manufacturing and selling of Paper

Dish & Napkin
Utilization Capacity of Plant

: 24000000 pcs (60% capacity)

Installed Capacity of Plant

: 40000000 pcs

Cost of Project

: 1759300

Implementation Schedule

: The average time of

Implementation of the Project is
Estimated 71/2 months.

Bio-data of partners

PARTNER 1: Name & Address

: Jagdish V. Khimsuriya
Aai Shree Khodiyar Bhuvan,
New Thorala, Ramnagar 3,
Rajkot 360003.

Age

: 20 Years

Education

: B.B.A.

Qualification

: Management (Final Year continue)

Role of Unit

: Managerial and Administrative Function

Experience

: Nil

Contribution

: 60%

PARTNER 2: Name & Address

: Amit Goswami
Kuber
9 Lati Plot,
Rajkot - 360003

Age

: 28 years

Education

: Diploma in Mechanical Engineering

Role of Unit

: Undertakes the Supervision of production and quality control of the

product.

Experience

: Has got the experience of 5 years

in technical aspects of production
of the paper dish & Napkin in the
Hiravati Paper Industry Ltd.

Contribution

: 40%

Introduction to the product

India is a very large country and the Indian economy is a
developing economy at present. So each and every industry has
great opportunities to achieve higher and higher growth. Moreover,
our country is very much populated so there is good market
available for producers for their product. That is why the many
overseas companies come to India to get the benefit of large
number of customers available.
Present the lifestyle of the most of the people is so fast that
they are always interested in use and throw things because such
products save their time and energy. Paper dishes & Napkin is one
of such use and throw products. At presents people dont want to
waste their time of various events and functions.
Paper dishes and napkins are use in large quantity at
marriage functions, other dinner parties, food courts, and
restaurants etc. this product can definitely take over the market
because it saves the time and energy of its consumers and money
of the organizer of the functions where paper Dishes and Napkins
are used the paper Dish and Napkins are easily available in the
market also.
Hence, this is very popular product in the life of the modern
time people.

Uses of the Product

Paper Dishes and Napkins are generally available in various
types of design, color and size. At marriage functions, parties,
receptions etc. lots of paper dishes and Napkins are use by people.
Especially in parties and receptions different types of varieties of
paper napkins are use by guest at parties to clean their hands.
Paper dishes are generally used for dry items at the functions.

Proposed location
This unit will be situated at Metoda G.I.D.C. It is hardly 13 km
away from Rajkot city. Therefore all the benefits, which are attached
with the Rajkot city, will be available to unit. The second benefit is
that Metoda G.D.I.C. is concerned with Industrial Zonal Area and
Government

of

Gujarat

is

continuously

trying

to

mobilize

industrialization in this area. Here, all types of facilities like water

supply, electricity, infrastructure, communication etc are easily
available at reasonable rate.
The various factors considers for selection of proposed
location are as follows.
1. Supply of raw material: Raw material is the basic input, which must be given
equal importance. The most of raw material is made available
from Ashok Paper Industries, which is also located in the
Metoda G.I.D.C. hence; our unit is situated much nearer from
the raw material supplier
2. Availability of labors: Availability of labor influences the selection of location.
Unit requires both semiskilled and skilled labors. Both types
of labors can be made available from the local are so
availability of labors never creates problem.
3. Transportation facilities: Transportation is required for assembling of raw
material and distribution of finished product. As most of the
raw materials are available from Ashok Paper Industry
situated in the same area, it is easy to carry out it by rickshaw.

For the distribution of the finished product; rickshaw,

matador and trucks will be used. As the product is of
lightweight and not of costly nature, it will not require any
special type of transportation facilities. All transportation
facilities are available from Rajkot.
4. Land: The basic necessity for each and every industry is land.
Without land no industry can be come into existence. In the
Metoda G.I.D.C. land is available at subsidized rate by
government of Gujarat.
5. Power, water supply and other facilities: As Metoda G.I.D.C. is declared as industrial zone by
the government of Gujarat, the state government provides,
water, power and other facilities like road, shed etc at
cheaper rates.
In this manner the all above mentioned factors
justify the selection of the proposed location that it would
definitely contribute to the profitability and success and
growth of plant.

Production Detail
INSTALLED CAPACITY
NO.

PRODUCT

1.

Paper
napkin

dish

DAILY
PCS.
& 1,33,333

MONTHLY
(25 DAYS)
PCS.
33,33,333

YEARLY
(300 DAYS)
PCS.
4,00,00,000

CAPACITY UTILIZED
(60% At first year & second year)
NO.

PRODUCT

DAILY
PCS.

1.
2.

Paper dish
Paper napkin

40,000
40,000

MONTHLY
(25 DAYS)
PCS.
10,00,000
10,00,000

YEARLY
(300 DAYS)
PCS.
1,20,00,000
1,20,00,000

65% AT THIRD YEAR

NO.

PRODUCT

DAILY
PCS.

1.
2.

Paper dish
Paper napkin

43,333
43,333

MONTHLY
(25 DAYS)
PCS.
10,83,333
10,83,333

YEARLY
(300 DAYS)
PCS.
1,30,00,000
1,30,00,000

Production Process
Con-v-nient Paper Industry produces Paper Dish & Napkin.
The process of producing paper dish and napkin is very much easy.
Nothing would be complex and the whole process is being
managed by efficient administration and supervision performed by
the most experienced person.
The main raw material required to prepare paper dish and
paper napkin is paper roll. We get raw materials from Ashok Paper
Industry and also from other paper industries. The nearer suppliers
supply most of the raw materials so it is available in less cost.
To produce paper dish, the paper is cut into the required size
by the punching machines as we can say in other words that paper
has been shaped with dish making machines.
For making paper napkins, paper roll is automatically colored
cut into required size with the help of a napkin machine. We
produces paper dish and napkins in various colored and in different
designs as well as sizes.
Thus in this way the production of paper dish and paper
napkin is been made. It starts with acquiring raw material that is
paper rills that are been processed at the unit by paper dish
machine and paper napkin machine and then it makes out the
finished products. Lastly paper dishes and napkins are dispatched
to wholesaler and retailer.
In this manner the process of producing paper dish and
napkin is quite easy.

Financial detail
1. LAND: NO.

PARTICULARS

1.
2.

Open land
Registration
Total

SQURE
METER
350
-

RATE/ SQ. AMOUNT

M.
500
1,75,000
55,000
2,30,000

AREA

RATE/ SQ. AMOUNT

M.
1,000
30,000
1,200
60,000
1,350
67,500

2. BUILDINGS: NO.

PARTICULARS

1.
2.
3.

Factory Shed
300
Office
50
Other
(R&D, 50
bathroom,
Water
tank, Designing etc.

Total

4,27,500

3. PLANT & MACHINERY: NO.

PARTICULARS

1.

30 size
paper 01
napkin
making
machine
Paper dish making 50
machine
Other
(R&D, 50
bathroom,
Water
tank, Designing etc.

2.
3.

Total

AREA

RATE/ SQ. AMOUNT

M.
2,25,000
2,25,000

1,200

60,000

1,350

67,500

4,27,500

4. FURNITURE & VEHICLE: NO.

1.
2.

PARTICULARS
Office furniture
Vehicles

AMOUNT
27,000
3,65,000

Total

3,92,000

5. COAST OF PROJECT
COST OF FIXED ASSETS
NO.
1.
2.
3.
4.

PARTICULARS
Land
Building
Plant & machinery
Furniture & Vehicle

AMOUNT
2,30,000
4,27,500
5,66,000
3,92,000

Total

16,15,500

WORKING CAPITAL COST OF PROJECT

NO.
1.
2.
3.
4.

PARTICULARS
Value of raw materials
Wage & salary
Electricity bills
Overhead expenses
Total workingcapital(1 year)
Total working capital (1 month)

AMOUNT
7,39,200
1,03,500
14,400
5,700
8,62,800
71,900

TOTAL COST OF PROJECT

NO.
1.
2.

PARTICULARS
Fixed assets
Working capital( 2 months)

AMOUNT
16,15,500
1,43,800

Total cost of project

17,59,300

6. FINANCIAL PROVISIONS: LOAN

NO. PARTICU
LARS

G.S.F.C.

OWN

BANK

1.
2.
3.

Land
Building
Plant &
machinery
Furniture
& vehicle
Working
capital

1,30,000
2,00,000
3,00,000

1,00,000
77,500
2,66,000

1,50,000
-

TOTAL
AMOUNT
RS.
2,30,000
4,27,500
5,66,000

92,000

3,00,000

3,92,000

43,800

1,00,000

1,43,800

Total

6,30,000

5,79,300

5,50,000

17,59,300

4.
5.

MEANS OF FINANCE
NO.
1.
2.
3.

PARTICULARS
G.S.F.C.
Own contribution
Bank

AMOUNT
6,30,000
5,79,300
5,50,000

Total

17,59,300

7. COST OF PRODUCTION: RAW MATERIAL

No
.

PARTICULARS

1.
2.

Paper roll
Paper
dish
napkin

Total

REQUI
REMEN
T
28,000
& 28,000

56,000

RATE

MONT
HLY

YEARLY
RS.

1.10
1.1

30,800
30,800

3,69,600
3,69,600

61,600 7,39,200

LABOUR CHARGES
NO.

PARTICULARS

1.
2.

Skilled labour
Semi-skilled
labours
Unskilled labour
02
Total
04
Add : 15% other benefit

3.

Total labour
charges

NUMBERS MONTHLY YEARLY

RS.
RS.
01
2,500
30,000
01
2,000
24,000

1,500
-

36,000
90,000
13,500

1,03,500

ELECTRICITY BILL
NO.
1.

PARTICULARS
Electricity bills

MONTHLY RS.
1,200

YEARLY RS.
14,400

REPAIRS & MAINTENANCE

NO.
1.

PARTICULARS
Repairs & maintenance

YEARLY RS.
13,000

INSURANCE & TAXES

NO.
1.

PARTICULARS
Insurance & taxes

YEARLY RS.
12,000

DEPRICIATION
NO.

PARTICULARS

1.
2.
3.

Building
Machinery
Furniture

Total
Depreciation

RATE OF
DEPRICIATION
5%
15%
10%

YEARLY RS.

1,45,475

21,375
84,900
39,200

INTEREST
NO.
1.
2.
3.

PARTICULARS

PRINCIPLE
AMOUNT RS.
G.S.F.C.
6,30,000
Own contribution 5,79,300
(15%)
Bank (18%)
5,50,000

YEARLY
INTREST
1,00,800
86,895

Total Interest

2,86,695

99,000

ADMINISTRATIVE EXPENSES
NO.
1.
2.

PARTICULARS
Stationery
Postage &
telephone

MONTHLY RS.
500
1,200

YEARLY RS.
6,000
14,400

Total Amount

1,700

20,400

TOTAL COST OF PRODUCTION: NO.

1.
2.
3.
4.
5.
6.
7.
8.

PARTICULARS
Raw materials
Labour charges
Electricity bills
Repairs & maintenance
Insurance & taxes
Depreciation
Interest
Administrative expenses

YEARLY RS.
7,39,200
1,03,500
14,400
13,000
12,000
1,45,475
2,86,695
5,700

Total Cost Of Productions

13,40,370

8. PROFITABILITY OF THE PROJECT: PARTICULARS

Paper dish, 118 lacs pcs. ( Rs. 11500 per lac pcs.)
Paper napkin, 118 lacs pcs. ( Rs 4460 per lac pcs. )
Total sales
Less: Total cost of production
Profit before tax
Less: Income tax @ 35%

Profit After Tax

AMOUNT
13,57,000
5,26,280
18,83,280
13,40,370
5,42,910
1,90,019

3,52,891

9. STATEMENT OF CLOSING STOCK: PARTICULARS

Total production @ 60% capacity
Less: Total sales
Closing Stock

PIECES
2,40,00,000
2,36,00,000
4,00,000

Break even analysis

Break-even analysis is a scientific analysis, which leads
producers towards more systematic and scientific production
planning or sales planning. It is because of break-even analysis that
the firm can accordingly work out the required size of the plant. By
break even analysis the small-scale entrepreneur can get proper
guidelines about volume of sales to be achieved to avoid the
danger of loss.
Break-even analysis indicates a point where total revenues
are equal total cost. It means a volume of sales where firm earns
neither profit nor suffer loss in called Break-even point.

Calculation of Break Even Point

PARTICULARS
Sales

AMOUNT AMOUNT
18,83,280

Less: Variable cost

Raw materials
Labour charges
Administrative expenses
Electricity bills
Overhead expenses

7,39,200
1,03,500
20,400
14,400
5,700

10,00,080

CONTRIBUTION
Less: Fixed costs
Interest
Depreciation
Insurance & taxes
Repairs & maintenance

8,83,200

2,86,695
1,45,475
12,000
13,000

4,57,170
5,42,910
1,90,019

PROFIT BEFORE TAX

Less: Income tax @ 35%
NET PROFIT

3,52,891

Break even point (%): Fixed costs

=

X 100
Contribution
457170

X 100
1000080

= B.E.P. (%) = 45.71%

Break even point (Rs.): Fixed costs

=

X Sales
Contribution
457170

X 1883280
1000080

= B.E.P. (Rs.) = 860910

Profit volume ratio: Contribution

=

X 100
Sales
1000080

X 100
1883280

= P.V.R.= 53.10%

Net profit ratio: Net Profit

=

X 100
Sales
352891

X 100
1883280

N.P.R.= 18.74%

Market analysis
We know very well that paper dish and napkin are
consumers products. Paper dish are use for putting items in it and
paper napkins are used for cleaning the hands by it. These two
products are generally used more in town and city areas. Now it
also becomes popular in many rural areas. At present few units are
manufacturing these products. Looking forward to the demand of
these products, the market of paper dish and paper napkin is very
good.
Ashapura Paper Industry supplies paper dish and paper
napkins to the wholesaler and retailers. It also supplies the same to
the many hotels and restaurants of the cities like Rajkot, Jamnagar,
Bhavnagar, Junagadh etc. Unit also has the benefit of good
relationship with customers because one of the partners Mr. Rohit
Nihalani has maintain very good personal relations with the
customers because of his five years experience in the same
industry.
At present, these products are use in many occasions as well
as at many places like food courts, restaurants, and sweet marts,
etc. It is also used at home while birthday parties; other small
functions etc, so we can say that the market for these products is
very good and the products are well accepted by the people.

Future prospects of the project

In modern age, popularity of these products paper dish and
paper napkin is increasing. Therefore the demand of it is increasing
day by day. Not only of this product but now a days future of whole
paper industry is looking very bright. The uses of paper dish and
paper napkin are more in urban areas than rural areas.
This indicates about expansion and development of the
project. Accordingly the present project is also expected have a
better prospects.

Risk factors
It is essential to consider the risk factors before starting the
process of production. The extent of influence of risk factors must
be assessed first.
As far as our unit is concerned, the main risk factors are
competition and various types of designing skills. Every unit
requires the different types of skilled person. Our unit also needs
that type of persons whose designing skill is better than the other
units person.
If the craze of small parties, receptions, etc decreases, the
demand of paper dish and paper napkin may also drop down.
Moreover, some major financial institutes do not recognize our
industry so there is a limitation of source of finance. Government is
right now playing a role of guardian of small-scale industries but in
future if government change its policies regarding such industries, it
will result into increase in coasts of the project.
These are the major risk factors involve with our industry.

Suppliers
MACHINERY AND EQUIPMENTS: 1. Paper napkin machine
M/s. Sheth Engineering Pvt.Ltd.
13, Mody House, 1st floor,
Tribhuvan Road,
Mumbai 400 004
2. Paper dish making machine and dish punching machine
M/s. G.J. Engineering Pvt. Ltd.
Naroda GIDC, Shed No. 48.
Rajkot Ahemdabad high way road.

RAW MATERIALS: 1. Ashok Paper Industry Metoda GIDC

2. Hirawati Paper Industry Limited - Paddahari
3. M/s. Himaliya Paper Board Industry Gandhidham

PRODUCT PROJECT REPORT

On
PAPER DISH & NAPKIN
Prepared By: Jagdish V. Khimsuriya
Class

: Third Year B.B.A.

Roll Number

: 6

Seat Number

Academic Year : 2005 06

COLLEGE
T. N. Rao College of I.T. & Management
GUIDED BY
Dr. Mita B. Vora

SUBMITTED TO
SAURASHTRA UNIVERSITY RAJKOT

INDEX
SR.NO
.

PARTICULARS
1.
2.
3.
4.
5.
6.
7.
8.
9.

Declaration
Certificate
Introduction To Project Partners & Product
Proposed Location
Production Details
Financial Details Of The Project
Break Even Analysis
Market Analysis
Suppliers

INTRODUCTION TO
PROJECT PARTNERS &
PRODUCT

PROPOSED
LOCATION

PRDUCTION
DETAILS

FINANCIAL
DETAILS
OF
THE
PROJECT

BREAK EVEN
ANALYSIS

MARKET
ANALYSIS

SUPPLIERS