THE PRODUCT PROJECT REPORT ON

MOZAIC TILES
PREPARED BY:

DHRUMAN B. GANDHI
T.Y.B.B.A.
ROLL NO. EXAM SEAT NO.

ACADEMIC YEAR: 2007-2008

K.K.PAREKH COMMERCE COLLEGE-AMRELI

INDEX
Sr. No.
1. 2. 3. 4. 5. 6. 7. !. #. 1$. 11. 12. 13. 14. 15. 16. 17. 1!.

PARTICULARS
INTRODUCTION PROJECT AT A GLANCE PROMOTERS BIO-DATA LOCATION INFRASTRUCTURE FACILITIES INCENTIVES MAR ET POTENTIAL RA" MATERIAL PO"ER CONNECTION MAN PO"ER PRODUCTION PROCESS % CAPACIT& FINANCIAL ARRANGEMENT OF CAPITAL MEANS OF FINANCE TOTAL COST OF PROJECT ESTIMATE COST OF PRODUCTION % PROFITABILIT& NAME % ADDRESS OF MACHINER&' E(UIPMENTS' RA" MATERIAL' COMPONENTS % SUPPLIERS BREA EVEN ANAL&SIS THE FUTURE PROSPECTS CONCLUSION

PREPARE
Under the entrepreneurship development program our University has made the provision of preparing a Product Project Report with a view to educate the student of management in a manner that they can know the formalities needed to establish a business unit. Under this program the student of

T.Y.B.B. . level have to prepare a report with information of unit with its land! building! plant " machinery to start the unit.

#ith a view to fulfill the objectives of university as mentioned above $ have made this Product Project Report on%

)PASSION TILLES*

AKNOLEDGEMENT
$t is a matter of great pleasure for me to present this report. $ also feel as an entrepreneur than a student at the presentation of this report. $t is a theoretical background to start something new in field of development and in my view this is most re&uired to study for a most student. $t is my cordially acknowledgement to those personality which helped me to prepare this report.

$ would like to e'press my heartily thankful to Principal (r. )r. *.(. +hah for his innumerable effort to encourage student especially for the preparation of this Product Project Report. $ would also thankful to our B.B. . in charge (r. (.(. Patel for well guidance and encouragement and provide details about the report and also gives data for making this report.

Yours faithfully! Place% mreli )ate% ,)*RU( - . -)*$/

K.K.PAREKH COMMERCE COLLEGE AMRELI (DEPARTMENT OF B.B.A.)

CERTIFICATE
Date:______

This is to certify that Mr. Dhruman B. Gan h! is a student of 0inal Year B.B. . *e has carried out the Product Project report as per the syllabus of +aurashtra University! Rajkot. *e has prepared an Product Project report on "HREE#I TILE" under our supervision and his own

contribution for making the report for academic year 122341225 is appreciated.

Prof. (.(. Patel ,B.B. .$ncharge/

)r. *.(. +hah ,Principal/

6.6.P R76* 89((7R87 89::7.74 (R7:$

;. Name $% the un!t :&+*R77<$ T$:7+=

1. L$'at!$n : (etoda! .$)8! :odhika! )ist%4 R <69T >. F$rm $% Or(an!)at!$n: +ole Propreitership ?. "!)e :+mall +cale $ndustry @. Nature $% In u*tr+ : (oAaic Tiles B. ".".I. Re(. N$. : pplied 3. In*ta,,e Ca-a'!t+ :>@ Brass per day 5. P$.er re/u!rement : >2 *.P. C. Man P$.er : (en power re&uirement is about >2 including

administrative! skilled " unskilled staff. ;2. Ra.0mater!a,*: .ray cement! white cement! chips! o'ide color! power " sands. ;;. Im-,ementat!$n:The implementation of project has been started and commercial production will commence in pril 1225.

$n todayDs modern world of tough competition! before entering into the industrial field and launching the new product! the details of raw materials! marketability! profitability! investment! etc. should be determine in advance so that new project will be result in fruitful profit or output. The Product Project Report provides all such information therefore we prepare it. $t will good and better for launching the new product. #hile keeping and thinking of ideas of .ovt. 9f .ujarat! $ have decided for setting up a small scale unit and the said project considered to start manufacturing (oAaic Tiles. The main consideration were ;. :ocation advantages

1. 0easibility of manufacturing! marketing " earning reasonable profit. >. vailability of labour re&uired. ?. $ncentives from .ovt. @. +ocial objectives achievement. fter giving careful consideration and daring in the mind the pros and cons of the alternative $ decided to establish a +mall +cale Unit as for manufacturing the (oAaic Tiles.

;. Name 1. A >. A(e re**

% (r. )hruman B. .andhi % ;1! (aninagar! Rajkot. % 12 years

?. 1ua,!%!'at!$n % B.B. . @. Re*-$n*!2!,!t+ % (anagement

:ocation of the unit depends upon many factors such as availability of raw materials! power! water! nearness to market! transport facilities! etc. #e are dependent upon the following factors for selection of (etoda .$)8! Rajkot! as the location for (oAaic Tiles. The road communication is easily available. There are regular and constant fre&uency of bus services. Thus the road communication is no problem at all. )ue to all these convenient and fre&uent facilities! the &uestion does not arise for the transportation. Raw materials of the finished goods can be transported from this center to any where in $ndia very easily!

conveniently! comparatively and at reasonable rates of transportation.

Besides geographical and man power consideration the promoters have also thought of other factors like wise of availability of power! residential accommodation! to the workers! primary education to workerDs children! healthy climate! etc. (A) 3ater: s far as the production of this project is concerned! the re&uirement of water is 3222 liters per day. The unit has proposed to construct Bore #ell. This would fulfill the re&uirements of the unit. (B) EFFL4ENT: The unit will not produce much effluent! which will be produced on small &uantity. There is no harmful effluent which is to be discharged.

)ue to announcement of the +tate .ovt. the unit will be insisted to avail social benefits incentives such are as under% ;. 12E state cash subsidy on fi'ed capital investment from the +tate .ovt. 1. Ta' *oliday Benefit under the $ncome Ta'. >. $nterest free loan in lieu of sales ta'. ?. 7'emption from levy of +ales ta' of purchases of raw material. @. +care raw material is made available from the .ovt. on priority basis. B. Provide a electricity at concessional rate.

#ith the continuous increase in building construction line! the demand for (oAaic Tiles and (arbles are steadily on increase. Thus there is an e'tensive demand for (oAaic Tiles in the construction business. $ have received in&uiry in enough numbers from various of Rajkot! .ondal and all over .ujarat envicing keen interest in our product. Besides the local demand in +aurashtra region! the demand is spread all over the country which are intended to be catered by the promoters of the unit. $n short market demand is regular! permanent and spread all over the $ndia. The heavy rise in the construction of residential house! factory buildings and offices! hotels and hospitals! schools and colleges! govt. and semi govt. and private premises inspired and forced to entrepreneur and businessman to go to the field of Tiles $ndustry. t the one edge! financial assistance for constructing house to the employees and non4employees group by the *U)89! .ujarat *ousing Board! *ousing

)evelopment 0inancial 8orporation! private and public limited! etc. created the demand of building materials on the other side! builders and contractors accepted the FBuilding 8onstruction= as the highly profitable business. )ue to these two factors demand of building materials reached to the peak point. (oAaic Tiles are the building materials. .enerally Rich! :ow middle income group prefer (oAaic Tiles for floring purpose and for decoration purpose. +o we can say that market of the Tiles will be very bright " developing.

The main Raw4materials are as follows% ;. 1. >. ?. @. B. .ray 8ement #hite 8ement 8hips 9'ide 8olor Powder +ands

The raw material is indigeneously available. +o far as the foreign e'change is involved no importance is given for the procurement of raw materials. +imilarly Plant " (achinery are also indegineously available. *ence in this project no foreign e'change is re&uired for the import of either Plant " (achinery or import of raw materials in the country. There is a possibility of earning a foreign e'change being e'porting the product manufactured.

+ince the raw material will be available in the state of .ujarat itself or very areas! the same can be transported by roads very conveniently at (etoda! ..$.).8. :odhika. $t is favourably located on +tate *ighway. *ence there is no bottleneck on this point. Thus the transportation of raw material would be very convenient and easy.

The unit will re&uire appro'imately >2 *.P. connection. The promoters have approached the P.G8: authorities and they have been assured that power will be made available as and when re&uired. The promoter have made a formal re&uest to P.G8: authorities. The promoters do not envisage any power problem. The supply will be &uiet satisfactory. By the time! the building will be constructed and machineries are irrected and installed. The power will be made available so there is not going to be any delaged or bottlenecked due to shortage or non availability of power. This industry is not highly power incentive and does not need any special or e'tra ordinary facilities. $rrection! installation of the machine and cable laying and power connection will lose on problem. The promoter is &uiet ac&uainted with the respect and oblige.

The unit will provide wholeHfull time employment to 1@ labors and 1 office staff. +ince the Plant " (achinery are indigenous! this unit will not re&uire any highly &ualified persons. The local people can easily trained and only few trained persons are re&uired in this project. 9nly intelligent trainees are kind enough to follow up the chain and method of production. s the (achines and process are relatively simple! the unit sought to be installed and product sought to be made are ideally suited to local labor.

The process of manufacturing the (oAaic Tiles is simple and very easy. +ome of the works are done by

the manual labor and some by machines. (achines are very easy going. The following are the process of our product% 5. MI6ING: $n this process! first white cement! dolomite powder and o'ide color are mi'ed in re&uired proportion of &uantity. These materials are placed in drum mi'ture machine and the same machine mi'es the afore stated raw materials. Then chips are mi'ed in the above states mi'ed materials. These are done by manual work. t last gray cement and sands are mi'ed separately in re&uired proportion of &uantity. Thus mi'ture of white cement! dolomite powder! chips! gray cement and sands are ready for the ne't process i.e. processing. 7. PROCE""ING: Under this process the mi'ture of white cement powder! color and chips are put in the re&uired no. of die sheet and then mi'ture of gray cement and sands are put in the same die sheet. Then this mi'ture is pressed by the press machine. 8. C4RING:

$n this process! aforesaid pressed materials are placed in water tank! i.e. curing water tank and same semi finished goods are kept in curing water tank for ;2 to ;@ days. 9. POLI"HING: fter passing the curing process! the (oAaic Tiles are ready for polishing. $n this process the (oAaic Tiles are polished by the .rinder (achine. :. FINI"HING: $n this last process! the works of the final touching are done to make the polished (oAaic Tiles as saleable goods in the open market. Pr$ u't!$n Ca-a'!t+: >@ Brass per day B22 Brass per month 3222 Brass per year

PromoterDs capital ?!22!222I22 +tate subsidy >!?2!222I22 ..+.0.8. :oan ;;!?@!222I22 Bank :oan 8.8. ;!C5!222I22 +r. Particulars mount ..+.0.8. +ubsidy (argin Bank -o. :oan 12E 32E

;. 1. >. ?. @. B.

3. 5.

:and Building Plant " (achinery 7lectric $nstallation 0urniture Preliminary " preoperative e'penses 8ontingency #orking 8apital

5@222 C1@222 ?11222 @2222 >2222 >1@22

@C@22 B?3@22 1C@?22 >@222 1;222 113@2

;3222 ;@@22 ;5@222 C1@22 5?222 ?1B22 ;2222 B222 4 @222 >222 C3@2

4 4 4 4 4 4

32222 >2@222 ;C;C@2 2

@B222 ;2B32 2 ;25;;@2 >;B222 >>;2@ 2

4 4

;?222 4

4 ;C5>22 ;C5>22

, / 0i'ed capitalH ssets% ;. :and ;!>@!222I22 1. Building ,as per engineering estimate/ ;?!1@!222I22 >. Plant " (achinery 3!>@!@22I22 ?. Preliminary " Pre4operative e'penses B2!222I22 B.7lectrical $nstallation ,lump sum/ 52!222I22

3.Price e'calation @E Bldg. " (achinery

;!22!222I22 JJJJJJJJJ 1@!>@!@22I22 ,B/#orking 8apital Re&uirement% ;. K month raw material in stock 52!222I22 1. C week work in progress in stock @2!222I22 >. K month finished goods in stock ;!15!222I22 ?. K month outstanding debtors ;!15!222I22 @. C month provision for e'penses @2!222I22 JJJJJJJJJJJ ?!>B!222I22 :ess% K month credit available for (aterials. 52!222I22 :ess% B@E from Bank borrowing ;!C3!222I22 JJJJJJJJJJJ (argins to be raised by the promoters ;!2B!@22I22 JJJJJJJJJJ 3!1@!@22I22 Raw material re&uired for ; Brass% Particulars ;. 8hips 1. #hite 6g per Bag ;.@ bag 3@ kg 2.@ bag @2 kg Rate per Bag @2 @22 Prod. Per Total day Rs. 3@ ' >@ 1@2 ' >@ 1B1@ 53@2

8ement >. )olomite powder ?. .ray 8ement @. +and B. 8olor

; bag @2 kg ;.@ bag @2 kg

?2 112

?2 ' >@ >>2 ' >@

;?22 ;;@@2

3.@ tones ;@ ;;1.@'>@ >C>3.@ 2.;22 kg 322 32 ' >@ 1?@2 Total (aterials >23;1.@ Per day prod. 8apacity >@ Brass vg. sales price Rs. ;?22 per Brass +ales per day ,;?22 ' >@/ I Rs. ?C222 +ales per month Rs. ?C222 ' 1@ daysI ;1!1@!222 +ales per year Rs. ;11@222 ' ;1I ;!?3!22!222 0or the ;st year factory run B2E cap.I@2!@2!222 (aterial re&uired at B2E capacityI Rs. C!C22 (aterial re&uired for ; month Rs. 1!?3!@22 (aterial for year Rs. 1C!32!222 ssumption% 0actory runs >22 days in a year. +tores " +pares% :ump sum Rs. 1!@22 p.m.I1@22 ' ;1 I >2222 Repair " (aintainance% :ump sum Rs. ;522p.m.I;522 ' ;1 I 1;B22 Power " 0uel% Power >2 *.P. ,7lectric assumption/ *.P. *ours )ays Price >2 ' 5 ' 1@ ' unit ' 5222 I

Plus% 0uel " #ater 1@22 ;>@22 ;B@222 #ages " +alary% ;. Prod. +upervisor ? ' ?222 I ;B222 1. (achine operator ;2 ' >222 I >2222 >. *elper skilled " unskilled 1? ' ;522 I ?>122 JJJJJJ 5C122 Plus 12E Bonus increment ;35?2 5C122L;35?2I;232?2 ' ;1 I ;15??52 9ther (anufacturing 7'p. 1222 p.m. lump sumI 1222 ' ;1 I 1?222 Rent! Ta'es " $nsurance% ;E of fi'ed assets Rs. 1?@2 ' ;1 1C?22 $nterest% Rs. >@222 ' ;1 ?12222 )epreciation% Rs. 1?@22 ' ;1 1C?222

9ther dministrative 7'p.% ;. ccountant cum manager 1. Peon cum watchman Plus% 12E bonus " $ncrement 9ther dm. 7'p.

; ' ?222 ; ' ;522 ;122 1222 JJJJJJ

C222';1I ;25222 JJJJJJJ 9perating Profit% -et +ales :ess% 8ost of +ales -et Profit dd% )epreciation Rs. @2!@2!222 Rs. ?5!2B!;B2 JJJJJJJJJJJJ Rs. 1!?>!5?2 Rs. 1!C?!222 JJJJJJJJJJJJ Rs. @!>3!5?2

;. ssociate 8ement! Porbandar 1. mbuja 8ement! Geraval

>. 7donwala " 8o.!

RajkotM hmedabad 4#hite 8ement ?. Garia " 8o.! Rajkot 48hips @. (adras 8hip 8enter! Dbad 48hips B. <ayant 8olour gency! Dbad 49'ide color 3. 8apital Paints! <abalpur 49'ide color 5. <asvant Traders! Rajkot 4Powder C. mbica Traders! 8hota Udaipur N Powder ;2. .ondali River! .ondal 4 +ands ;;. -iyari River 4 +ands ;1. .urudev (achine Tools! <ail Road! (anavadar4 >B1B>2

Break 7ven Point I 0i'ed cost

JJJJJJJJJJ ' ;22 8ontribution 8ontribution I +ales price N Gariable cost I ;?22 N 2 I ;?22 B.7.P. I I 1@>@@22 JJJJJJJJ ' ;22 ;?22 ;!5;!;23

#e have undertaken the Tiles $ndustry on +mall +cale and have kept good scope for e'pansion in future. The demand for (oAaic Tiles is increasing day by day because of demand is increasing due to development of construction industries. Though there tough competition in this industry there is wide scope for its demand and e'pansion. Thus on the whole our $ndustry has bright future prospects.

$ would like to conclude that $ have prepared this report myself under the guidance of our professors. +uch types of reports are so much useful for developing the general knowledge of ourself. That means that their report is the measure of our study which are learn in this course. +uch type of knowledge plays a dominant role in the practice world in any type of business. ccording to new generation! there is various scope for developing the Tiles industry. )ue to development of construction industry as well as the changing scenario in the modern view of decorating the house! various types of Tiles fulfill all the needs of a house which they want to make more praise worthy. $ produce the various types of colorful tiles which is more demanded in the market. +o $ forecast that my industry have all chances to face with the fashioning changing world. But all depends upon the hard work and blessings of .od.