Project report for Mineral water

Introduction

Project report for   Packaged drinking water manufacturing is as follows :

Water  forms  an  essential  part  of  every  human  being.  Since  it  is  a human necessity it makes best sense to do business in.  As a normal human being  requires  an  average  of  2-3  liters  of  water  everyday  and  world population is more than one billion (growing at 2-3% annually) the business opportunity is enormous and the potential is largely untapped.The  bottled  water  industry  is  estimated  to  be  a  whopping `.  1600 crores business.  It has grown at a rate of 38-40% annually over the past four years.  Initially bottled water  brands like the French manufactured Damone were  promoted  at  clubs,  fitness  centers,  cinemas,  department  stores,  malls, ice-cream  parlors,  cafes  and  retail  sports  outlets,  besides  restaurants,  hotels and supermarkets with a  price tag of ` 70/-for 1 liter bottle.  Other brands later  began  pitching  for  the  larger  middle  class  and  lower  middle  class markets

Market potential & Strategy

Earlier  bottled  drinking  water  was  privileged  to  high  class,  foreign tourist  and  highly  health  conscious  people  but  the  present  decade  has witnessed increasing popularity among average consumers, increasing living standards,   disposable   income,education   and   awareness   among   the consumers  domestic  and  foreign  tourist,  sophisticated  business  houses  and offices has increased rapidly the sales of bottled water in recent years.The growing demand for bottled water speaks volumes of the scarcity of clean drinking water and the quality of tap water.  It has become an icon of  healthy  lifestyle  emerging  in  India.    Selling –‘safety’ –i.e.  pure  and simple water has now become one of the fastest growing industries in India despite  the  harsh  truth  it  is  build  on  the  foundation  of  bad  governance, inequality  and  obvious  exploitation.    However,  bottled  water  provides  the
3distance   advantages   of   convenient   packing,   consistent   quality   and   is ubiquitous...

PROJECT REPORT

Mineral water

Address

Introduction

Project report for   Packaged drinking water manufacturing is as follows :

Water  forms  an  essential  part  of  every  human  being.  Since  it  is  a human necessity it makes best sense to do business in.  As a normal human being  requires  an  average  of  2-3  liters  of  water  everyday  and  world population is more than one billion (growing at 2-3% annually) the business opportunity is enormous and the potential is largely untapped.The  bottled  water  industry  is  estimated  to  be  a  whopping `.  1600 crores business.  It has grown at a rate of 38-40% annually over the past four years.  Initially bottled water  brands like the French manufactured Damone were  promoted  at  clubs,  fitness  centers,  cinemas,  department  stores,  malls, ice-cream  parlors,  cafes  and  retail  sports  outlets,  besides  restaurants,  hotels and supermarkets with a  price tag of ` 70/-for 1 liter bottle.  Other brands later  began  pitching  for  the  larger  middle  class  and  lower  middle  class markets

Market potential & Strategy

Earlier  bottled  drinking  water  was  privileged  to  high  class,  foreign tourist  and  highly  health  conscious  people  but  the  present  decade  has witnessed increasing popularity among average consumers, increasing living standards,   disposable   income,education   and   awareness   among   the consumers  domestic  and  foreign  tourist,  sophisticated  business  houses  and offices has increased rapidly the sales of bottled water in recent years.The growing demand for bottled water speaks volumes of the scarcity of clean drinking water and the quality of tap water.  It has become an icon of  healthy  lifestyle  emerging  in  India.    Selling –‘safety’ –i.e.  pure  and simple water has now become one of the fastest growing industries in India despite  the  harsh  truth  it  is  build  on  the  foundation  of  bad  governance, inequality  and  obvious  exploitation.    However,  bottled  water  provides  the
3distance   advantages   of   convenient   packing,   consistent   quality   and   is ubiquitous.This  particular  industry  in  India  has  never  looked  back  after  the economic liberalization process of 1991-92.  In fact the fastest growth in the consumption  of  bottled  water  in  the  world  has  been  recorded  in  India according to a new study conducted by the US based earth policy institute. According  to  Bureau  of  Indian  Standards  (BIS),  there  are  1200 bottling  plants  (out  of  which  600  are  in  the  state  of  Tamilnadu)  and  200 brands  of  packed  drinking  water  across  the  country  (nearly  80%  of  which are  local)  hitting  over  the  markets  which thoroughly  signifies the  market is big, even by international standards.hese  are boom  time  for the  Indian bottled  water  industry –more  so because  the  economics  are  sound.    India  is  the  tenth  largest  bottled  water consumer  in  the  world.    The  consumption  of  smaller  units  of  500  ml  has increased  by  around  140%  perceptibly.    Even  school  children  are  carrying the  500  ml  packs  in  their  school  bags.    The  20  liter  bulk  water  jars  have found  phenomenal  acceptance  in  house  hold  and  at  workplace.    With  the growing  market  size,  one  can  imagine  the  employment  opportunity  being created with the surge in bottled water industry.The bottled water market is dominated by major player such as Coco-cola,  Pepsico,  Parle    K.K.  Beverages,  Manikkchand,  Tata-Mount  Everest.   Although  we have  a large number  of players,  Parle  was  the pioneer  among the major player when it was launched in India, 35 year s ago

Project at a glance

Name & Address of Unit

Packaged drinking water

Address

Details of unit
Email : youremail@gmail.com
Phone : 0000000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 0000000
Designation : Proprietor
E-mail : youremail@gmail.com

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Land and Building *******
2 Motor and related pump sets *******
3 RO system and Other filtering equipments *******
4 Testing equipments *******
5 Computer, CCTV, Printer *******
6 Computer tables and furnitures *******
7 Electrification *******
8 Preliminary expenses *******
9 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Revenue from Sales ******* X 420000 liter *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Salary *******
2 Accounts and admin *******
3 Repairs & Maintanance *******
4 Electricity *******
5 Office expense & utilities *******
6 Wages *******
7 Marketing/Advertisement *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Land and Building ******* 1 ******* *******
2 Motor and related pump sets ******* 1 ******* *******
3 RO system and Other filtering equipments ******* 1 ******* *******
4 Testing equipments ******* 1 ******* *******
5 Computer, CCTV, Printer ******* 1 ******* *******
6 Computer tables and furnitures ******* 1 ******* *******
7 Electrification ******* 1 ******* *******
8 Preliminary expenses ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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