PROJECT REPORT OF KALPAVRIKSHA AYURVED PHARMACY BELGAUM.

INTRODUCTION : KALPAVRIKSHA AYURVED PHARMACY (Kalpavriksha for short) is established to promote the cause of the Ayurveda in the manufacturing Ayurvedic Medicines & allied business. The aim of Kalpavriksha is to manufacture proprietary and classical medicines. India is the land of the Vedas, and also the Ayurveda. One of the oldest systems of healthcare in the world,, with a history of more than 5000 years. Ayurveda aims to make mankind healthy and happy. Its goal is the physical, mental, social and spiritual welfare of all human beings. It strives to keep healthy people healthy and cure sick people of their many diseases that may have troubled them since long. Some of the benefits of Ayurvedic treatments are briefed below: 1. Herbs in Ayurveda help a great deal in proper absorption and digestion of food. They also help as an appetizer. 2. Herbs can be used as preventive medicines as well. Sometimes, they are also used to strengthen the immune system. 3. Apart from strengthening the immune system, the herbs can also give a boost to the system. 4. In case a person is attacked by flu, viruses or suffering from any kind of bacterial infection, then the Ayurvedic practitioners usually prescribe herbs that are mixed with other herbs or consumed individually, to cure such conditions. 5. Studies in medicinal science suggest that Ayurvedic herbs can also treat deadly diseases like cancer, AIDS and autoimmune disorders. It is also found that herbal treatment is an effective alternative to allopathic medicines. 6. When a person is undergoing treatment for some chronic diseases, Ayurvedic herbs can provide nourishment and support to the body. As an initiative, the Govt. of India has persuaded many hospitals of India for operating in Ayurvedic treatment. The state Govt. is providing basic infrastructure facilities in a fine tuned manner to the investors of ayurvedic medical sector. The land, road, electricity, water, communication facilities are being provided to them by the state Govt. Conducive atmosphere has been created in recent days for best players in this field to extend their hands for progressive partnership with the Govt. Both Central and State Govts. are keen to develop & promote the our ancient medical science i.e. Ayurvedic. This explains that there is a clear need of Ayurvedic preparations. In this regard, Kalpavriksha Ayurvedic Pharmacy would produce quality Ayurvedic Medicines. Currently, Ayurvedic Medicines are being manufactured by a few Ayurvedic Pharmaceuticals therefore short supply of Ayurvedic Medicines is noticed in the market

NAME OF THE UNIT ADDRESS: FACTORY: OFFICE: NATURE OF ACTIVITY SIZE OF THE UNIT

: M/s. KALPAVRIKSHA AYURVED PHARMACY : HONGA INDUSTRIAL ESTATE, HONGA, BELGAUM : ANANTASHAYEN GALLI, BELGAUM : MAUNFACTURING OF AYURVEDIC DRUGS. : SMALL SCALE INDUSTRY S.S.I. Reg. No. PROV/SSI, date : No.

DRUG LICENCE NUMBER CONSTITUTION AND BIO DATA :

KALPAVRIKSHA is a Proprietary concern run by Dr Sameer Naik He has sufficient experience in the manufacture and sale of Ayurvedic Drugs for the past one decade, which has earned him goodwill and fame. He has gained sound technical knowledge and guidance from experts who are in this filed for more than 2 decades. INFRASTRUCTURE : LAND AND BUILDING : The promoter has arranged for *** guntas of land in KIADB INDUSTRIAL Estate, Honga, Belgaum. The lease-com-sale agreement is already registered and the land possession & N.O.C. is also being obtained. The building plan is ready with includes work shop shed, office premises and storage facilities. POWER AND WATER: The unit will be established in Govt. Industrial Area and as such the power connection and water supply facilities can be obtained without any problems. Initially, the unit will require ** KVA current load.

TRANSPORTATION: The location of the unit is located within the city limits of Belgaum and is near to National Highway No. 4. The unit is ideally located so as to easily avail services of transporters without any delay and at reasonable cost. LABOUR : The promoter proposes to generate employment for about 135 persons (skilled and unskilled). The skilled and unskilled workers required for the unit are available near Honga village at reasonable wage rates. The promoter has conducted survey in this respect and is sure of getting the required labour force. MACHINERIES: The sophisticated machineries are available in the market we prefer the machineries which are semi automatic and manually operated types viz. 1) Capsule filling machine manual type 2) Tablet making machine single punch 3) Emulsifier 4) Grinder 5) Liquid filling machine semi automatic 6) Ointment filling & sealing machine 7) Pulverizer. RAW M ATERIALS : Much of the raw materials are available in the local market and comparatively the cost of raw materials is Low. Few raw materials are to be purchased from out side the state. The promoter has send requisitions to a few suppliers who have agreed to supply raw materials in time and sufficient quantity. COST OF PROJECT : PARTICULARS LAND BUILDING AND OTHER INFRASTRUCTURE PLANT AND MACHINERY FURNITURE MARGIN FOR WORKING CAPITAL (IN RS.) 700,00 0 1,000,00 0 200,00 0 50,00 0 200,000

COST OF PROJECT

1,950,000 WORKING CAPITAL REQUIREMENT

S.NO. 1 2 3 4

PARTICULARS RAW MATERIAL WIP FINISHED GOODS DEBTORS

STOCKING PERIOD 2 WEEKS 1 WEEK 1 WEEK 2 WEEKS

PERCE NTAGE 25% 25% 25% 20%

RS. 204,286 110,314 57,915 423,077

MARGIN MONEY (RS.) 51,072 27,579 14,479 84,615 177,744

BANK LOAN (RS.) 153,215 82,736 43,436 338,462 617,848

Margin money Rounded off to Rs. 200,000

___________________________________________________________________________________ _ MANPOWER REQUIREMENT

MANPOWER REQUIREMENT TECHNICAL STAFF SKILLED WORKERS UNSKILLED WORKERS TOTAL

NOS. 10 5 195 210

SALARY P.M. 3000 2000 50

PER ANNUM 360,000 120,000 2,925,000 3,405,000

PRODUCTION DETAILS : ( P.M ) ( MAJOR PRODUCTS ONLY. ) RAW MATERIALS QTY. FLUVIT CAPSULE (IN NOS.) VASOVIT SYRUP (IN LITERS) DIARHOVIT CAPSULE (IN NOS.) DIARHOAVIT SYRUP (IN LITERS) SUDHRADANTI TOOTH POWDER (IN PACKS) BHASKAR LAVAN (IN KGS.) AVIPATTIKAR CHURNA (IN KGS.) 91,00 0 4,50 0 108,75 0 4,50 0 4,25 0 21 4 1,35 0 RATE PER. (IN RS.) 1.00 9.00 1.00 9.00 8.00 6 3.00 1 8.00 AMT (RS.) 91,00 0 40,50 0 108,75 0 40,50 0 34,00 0 13,46 6 24,30 0 352,51 6 PACKING COST QTY. 91,00 0 4,50 0 108,75 0 4,50 0 4,25 0 21 4 1,35 0 RATE PER. (IN RS.) 0.2 5 3.0 0 0.2 5 3.0 0 2.0 0 5.0 0 2.0 0 AMT (RS.) 22,75 0 13,50 0 27,18 8 13,50 0 8,50 0 1,06 9 2,70 0 89,20 6

= Rs. 352,516 + 89,206 = 4,41,722 = (Round off). Rs. 44,0,000 p.m. = (Round off) Rs. 53,00,000 p.a. PRODUCTWISE SALES REVENUE : ( P.M ) QTY. PRODUCTS FLUVIT CAPSULE (IN NOS.) VASOVIT SYRUP (IN LITERS) DIARHOVIT CAPSULE (IN NOS.) DIARHOAVIT SYRUP (IN LITERS) 91,00 0 4,50 0 108,75 0 4,50 0 RATE PER. (IN RS.) 5.0 0 16.8 0 1.8 0 16.8 0 AMT (RS.) 455,00 0 75,60 0 195,75 0 75,60 0

SUDHRADANTI TOOTH POWDER (IN PACKS) BHASKAR LAVAN (IN KGS.) AVIPATTIKAR CHURNA (IN KGS.)
TOTAL

4,25 0 0 21 4 0 1,35 0 0

14.0 0 79.5 3 28.0 0 3

59,50 16,99 37,80 916,24

Approx. Rs. 916000 p.m. For the year = Rs. 916000 * 12 = Rs. 1,10,00,000/- approx. Assumption: On an average. 90% of the total production is assumed to be sold out. PROFITABILITY STATEMENT : SALES TURNOVER P.A. LESS: DISCOUNT TOWARDS DEALERS MARGIN (10%) A COST OF RAW MATERIAL ELECTRICITY CHARGES SALARY & WAGES SELLING OVERHEADS INTEREST : TERM LOAN WORKING CAPITAL DEPRECIATION : BLDG FURNITURE PLANT & MACHINERY B PROFIT BEFORE TAX (A-B) TAX @30% PORFIT AFTER TAX 52 (WEEKS) 5,300,000 26,000 3,405,000 330,000 120000 65000 40000 3150 10560
(rounded off)

11,000,000 10% 1,100,000 9,900,000

3% 12%p.a. 13%p.a. 4% 6.30% 5.28%

54,000 3920000 9,300,00 0 600,00 0 180,00 0 420,00 0

DEBIT SERVICE CONVERAGE RATIO : DEBIT SERVICE COVERAGE RATIO 70% 70% 1 2 PROFIT AFTER TAX 4.20 4.33 Add: Int on term loan 1.2 0.98 A 5.40 5.31 Term loan installment 1.60 1.70 Add: Int on term loan 1.2 0.98 B 2.80 2.68 DEBT SERVICE COVERAGE RATIO (A/B) 1.93 1.98 AVG. DEBT SERVICE COVERAGE RATIO (5 YEARS) (IN Lakhs ) 70% 5 5.97 0.25 6.22 2.50 0.25 2.75 2.26

70% 3 4.72 0.8 5.52 1.95 0.8 2.75 2.01

70% 4 5.23 0.55 5.78 2.20 0.55 2.75 2.10

2.06

DEBT EQUITY RATIO : DEBT EQUITY RATIO 1,000,00 TOTAL DEBT- TERM LOAN 500,00 EQUITY(PROMOTERS CONTRIBUTION) SUBSIDY DEBT EQUITY RATIO 0 200,00 0 A/B 0 1.43 700,00 (B) 0 (A)

BREAK EVEN ANALYSIS : ( Ist Year )

BREAK EVEN ANALYSIS FIXED COST SALARY AND WAGES ADM EXPENSES SELLING INT. DEP BEP

60% 0.50% 40%

3,405,000 11,000,000 330,000 185000 54,000

2,043,000 55,000 132,000 185,000 54,000 2,415,000

FIXED COST X 100 FIXED COST + PROFIT 85.19 8,433,333

(in percent) SALES AFTER MARGIN AT BEP (Rs.)

PRODUCTED CASH FLOW STATEMENT :

Rs. In Lacs. PROJECTED CASH FLOW STATEMENT 1 SOURCE OF FUNDS NET PROFIT BEFORE INT.TAX BUT AFTER DEP DEP DECREASE IN ASSETS INCREASE IN LOAN APPLICATION OF FUNDS INTEREST TAX TERM LOAN INSTALLMENT INCREASE OF ASSETS DRAWINGS OF PROP. SURPLUS OPENING BALANCE SURPLUS FOR THE YEAR SURPLUS CLOSING BALANCE 2 3 4 5

7.85 0.53 0 0 8.38 1.85 1.26 1.60 0.00 1.00 5.71 0 2.67 2.67

8.09 0.48 0 0 8.56 1.48 1.30 1.70 0.00 1.00 5.48 2.67 3.08 5.75

8.81 0.42 0 0 9.23 1.19 1.41 1.95 0.00 1.00 5.55 5.75 3.68 9.43

9.78 0.34 0 0 10.12 0.81 1.57 2.20 0.00 2.00 6.58 9.43 3.54 12.97

11.15 0.26 0 0 11.41 0.35 1.79 2.50 0.00 2.00 6.64 12.97 4.77 17.75

PROJECTED

1.03

1.09

1.11

1.14

PERFORMNACE ANALYSIS SALES LESS: DEALERS DISCOUNT COST OF PRODN RAW MATERIALS ELECTRICITY SALARY ADMIN SELLING INT- TERM LOAN INT - WORKING CAPITAL DEP 5 2.46 0.26 3 4.05 0.55 3.30 1.2 0.65 0.53 9 3.00 6.00 0.3 1.80 4.20 0.53 4.73 54.03 0.27 35.07 0.57 3.40 0.98 0.5 0.48 95.30 6.67 2.00 4.67 0.48 5.15 58.90 0.29 38.23 0.62 3.70 0.8 0.38 0.42 103.34 7.81 2.34 5.47 0.42 5.89 65.38 0.32 42.43 0.69 4.11 0.55 0.26 0.34 114.08 9.30 2.79 6.51 0.34 6.84 74.5 3 0.3 7 48.3 7 0.7 8 4.6 9 0.25 0.1 0.26 129.3 5 11.2 9 3.3 9 7.9 1 0.26 8.1 7 1 110.00 11.00 99.00 2 3 113.30 123.50 11.33 12.35 101.97 111.15 4 137.08 13.71 123.37 5 156.27 15.63 140.65

10%

PBT TAX PAT ADD BACK DEP CASH ACCRUALS