Beruflich Dokumente
Kultur Dokumente
Submitted by:
Prasun Shakya
Term-4, MBA
Submitted to:
Ace Institute of Management
Pokhara University
Kathmandu
January, 2014
Disclaimer
The author is confident that the result of the research and the result presented in the report
will be taken as guidance for a more comprehensive study on a future date for the
concerned store. The author is not responsible or liable, legally against the results and
consequence decisions based on the response received from the interviews. The views
expressed in this report are those of the author only.
Prasun Shakya
II
Acknowledgement
Foremost, I would like to express my deep and sincere gratitude to my instructors Mr.
Ashish Tiwari, Mr. Ajay Shah, Mr. Kumar Thapa and Mr. Anand Tuladhar for sharing their
knowledge and supporting me in every step towards developing the business plan. Their
support expanded my horizon to understand the process and complexities involved in the
process.
I would like to extend my appreciation to the staff of Glacier Food and Beverage Industries
Pvt. Ltd. Badikhel, Godawari, Lalitpur for sharing their expertise on the process of water
purification, bottle sterilization and packaging.
Furthermore, I would like to thank Ace institute of management and Pokhara University for
giving such an opportunity that will enrich the learning of the MBA program.
Lastly, I would like to thank all my friends who helped me to complete the project.
Thanking you,
Sincerely,
Prasun Shakya
III
Executive Summary
Himalaya Water business will produce high quality sparkling water bottle for the first time in
Nepal. Some of the features of our product will be
1. It will have many health benefits
2. It will the first sparkling water produced in Nepal
3. It will be one of best in quality compare to other locally produced bottled water
Currently water supplied by Water Corporation is not suitable for drink. Even though there
are many bottled water industry in Nepal, they are more focus on reducing cost rather than
quality of water. Hence bottle water quality has been in decreasing trend and demand for
good quality is very high. Premium bottled water such as Himalaya On Top and Imported
sparkling bottle water like san Pellegrino, Evian etc. are very high price and most of
consumers cannot afford it. This is where the opportunity to produce a good quality
sparkling water at an affordable price exists.
One of the most attractive aspects is that our product will be different from our competitors
and it will help to attain a strong cash position and achieve profitability in the early year of
operation. Due to demand for good quality drinking water is always in the increasing trend,
our projection of quick profitability is attainable.
There will be a supervisor employed who will also supervise the entire process. Moreover, a
marketing officer and finance officer will help in the day to day functioning of the firm. The
workers will be trained on the proper way to do various activities which will increase the
efficiency and effectiveness of the overall process.
Marketing will be a crucial task as it not only involves selling but begins with spreading
awareness about sparkling water and its various health benefits. There is also a need to
change people perception towards our product that it is just not an ordinary bottle of water
but it is natural medication for prosperous health and life.
The firm will be located in Godawari, Lalitpur and established by the equity investment of
two investors at a ratio of 50% - 50% respectively. This amount will equate 60% of the entire
investment required and the other 40% will be covered by bank loan. If activities follow as
planned, the pay back is expected on the first quarter of third year. The company will
declare and pay dividends from second year onwards. The dividend will account to 70% in
net profit till year four and 80% in year five.
IV
Contents
Chapter 1: Introduction .......................................................................................................................... 1
1.1
Background ............................................................................................................................. 1
1.2 Vision............................................................................................................................................. 1
1.3 Mission .......................................................................................................................................... 1
1.4 Objectives...................................................................................................................................... 1
1.5 Key success factors........................................................................................................................ 2
1.6 Registration ................................................................................................................................... 2
1.7 Organisational Structure ............................................................................................................... 2
Chapter 2: The Industry and the Company ............................................................................................. 3
2.1 The Industry .................................................................................................................................. 3
2.2 The Company ................................................................................................................................ 4
2.3 Product and Service ...................................................................................................................... 4
2.4 Entry and Growth Strategy ........................................................................................................... 4
Chapter 3: Market research and analysis ............................................................................................... 5
3.1 SWOT Analysis............................................................................................................................... 5
3.2 Porters five competitive forces ..................................................................................................... 6
Chapter 4: Strategy and Implementation ............................................................................................... 7
4.1 Value Proposition .......................................................................................................................... 7
4.2 Competitive edge .......................................................................................................................... 7
4.3 Marketing Strategy ....................................................................................................................... 7
4.4 Positioning Statement................................................................................................................... 8
4.5 Pricing Strategy ............................................................................................................................. 8
4.6 Sales Strategy ................................................................................................................................ 8
4.7 Web Plan Summary ....................................................................................................................... 9
4.8 Distribution Strategy ..................................................................................................................... 9
4.9 Sales Forecast.............................................................................................................................. 10
Chapter 4: Manufacturing and Operations ........................................................................................... 11
5.1 Process and capacity design........................................................................................................ 11
5.2 Scheduling ................................................................................................................................... 15
5.3 Layout design .............................................................................................................................. 15
5.4 Human resource design .............................................................................................................. 15
5.5 Inventory Management .............................................................................................................. 16
5.6 Location Strategy ........................................................................................................................ 16
V
VII
List of Tables
Table 1: Sales forecast .......................................................................................................................... 10
Table 2: Human Resource Design ......................................................................................................... 16
Table 3: Employees roles and responsibilities ...................................................................................... 16
Table 4: Time and action plan ............................................................................................................... 17
Table 5: Income Statement ................................................................................................................... 19
Table 6: Cash flow Statement ............................................................................................................... 20
Table 7: Balance Sheet .......................................................................................................................... 21
Table 8: Financial Ratios........................................................................................................................ 22
Table 9: Payback period ........................................................................................................................ 22
Table 10: Net Present Value and IRR .................................................................................................... 22
Table 11: Retained Earnings.................................................................................................................. 23
Table 12: Break even analysis ............................................................................................................... 23
Table 13: Total Cost of Production Plant .............................................................................................. 26
Table 14: Salary ..................................................................................................................................... 33
Table 15: Details of fixed assets ............................................................................................................ 34
Table 16: Administrative expenses ....................................................................................................... 35
Table 17: Calculation of Depreciation ................................................................................................... 36
Table 18: Loan amortization ................................................................................................................. 36
Table 19: Sales revenue ........................................................................................................................ 37
Table 20: Total Investment requirement .............................................................................................. 37
Table 21: Purchase Budget ................................................................................................................... 38
Table 22: Cost of Raw materials............................................................................................................ 38
Table 23: Price of raw materials ........................................................................................................... 39
Table 24: MRP calculation..................................................................................................................... 41
Table 25: Cost of production per bottle ............................................................................................... 42
VIII
List of Figures
Figure 1: Organisational Structure of Himalaya Water........................................................................... 2
Figure 2: Porters five competitive forces ................................................................................................ 6
Figure 3: Prime International distribution network ................................................................................ 9
Figure 4: Sparkling Water Production Process...................................................................................... 11
Figure 5: Water Treatment System ....................................................................................................... 11
Figure 6: Water Chiller Tank ................................................................................................................. 12
Figure 7: Packing System....................................................................................................................... 14
Figure 8: Film Shrink-wrapping machine .............................................................................................. 14
Figure 9: Factory Layout........................................................................................................................ 15
Figure 10: Gantt Chart of Business execution....................................................................................... 17
Figure 11: Quotation for water production plant ................................................................................. 26
Figure 12: Advertisement tariff of ECS Media ...................................................................................... 27
Figure 13: Quotation of Van ................................................................................................................. 28
Figure 14: Quotation for MFC printer ................................................................................................... 29
Figure 15: Quotation for Table.............................................................................................................. 29
Figure 16: Quotation for Office Chairs .................................................................................................. 30
Figure 17: Quotation for Bookcase ....................................................................................................... 30
Figure 18: Quotation for Cabinet .......................................................................................................... 31
Figure 19: Quotation for Desktop Computers ...................................................................................... 31
Figure 20: Quotation for Inveter ........................................................................................................... 32
Figure 21: Quotation for Telephone ..................................................................................................... 32
Figure 22: Registration fees for a company .......................................................................................... 39
Figure 23: Website design quotation .................................................................................................... 40
Figure 24: Estimation of Construction cost........................................................................................... 41
Figure 25: Fuel consumption chart ....................................................................................................... 42
Figure 26: Import Duty Charges ............................................................................................................ 43
IX
Chapter 1: Introduction
1.1 Background
The situation of drinking water brings to the forefront two issues first, there is insufficient
supply in the valley and second, the water supplied by the government needs to be treated
before it can be consumed. In this backdrop, mineral water has become one of the fastest
growing businesses in the last few years. Today, there are more than 400 mineral water
brands available in the market, which is natural due to the growing demand. While the
mineral water market is saturated with both national and international brands, it is the
domestic brands that are enjoying the larger market share. Almost all of the companies that
are producing bottle water with strategy of cost minimization with little or no differentiation
and quality as secondary strategy. This is where opportunity to produce good quality
sparkling water exists in the market where the product itself is first of its kind in the
Nepalese market.
Sparkling water is water that contains carbon dioxide or hydrogen sulphide gas, whether
naturally occurring or introduced on purpose to create an effervescent drink. Sparkling
waters are often consumed on their own and can be served either plain or with a twist of
lemon or lime as garnish. They may also be used as the base for various cocktails or sodas,
and are sometimes recommended as a home remedy for an upset stomach.
1.2 Vision
To make every person in World to drink and experience Himalaya Water and consequently
feel inspired and uplifted physically, emotionally, spiritually and mentally.
1.3 Mission
Himalaya Water mission is to become the global sparkling water of choice for every home
and business and to be acknowledged as a brand of excellence and supreme quality.
1.4 Objectives
Increasing the trend of drinking sparkling water raising awareness about health
benefits.
Matching the taste of Sparkling water with palette of Nepalese Consumers.
Marketing campaign to support the use of Sparkling water as base for various
cocktails and drinks as substitute to bottle water.
Offering high quality Sparkling water in an affordable price.
Effecting implementation of its operation strategy to lower the cost of production.
1.6 Registration
The following legal procedures should be followed in order to register the company as
Himalaya Water Pvt. Ltd. We should make an application to the Company Registrars Office
in the prescribed legal format, along with the prescribed official fee which is Rs. 43,000,
along with the following documents:
I.
II.
III.
IV.
V.
Memorandum of Association
Article of Association
Copy of the consensus agreement
Approval or license from a competent authority, if required
A Certified copy of the citizenship certificate
After making necessary inquiries, the Company Registrars Office will register such company
within 15 days and grant the company registration certificate
General
Manager
Finance
Department
Marketing
Department
Operation
Department
Workers
Figure 1: Organisational Structure of Himalaya Water
There are more than 400 bottle water companies in Nepal and many unregistered
companies as well. The fast-growing bottled-water industry is highly unregulated as studies
have shown that one fourth of the water distributed in the market is contaminated. About
25 per cent of the bottled-water companies based in the Kathmandu Valley have been
flouting the standards set by the Department of Food Technology and Quality Control.
Weakness
Opportunity
The market for sparkling have not yet been met, therefore there is a larger market
Establishment of goodwill by providing quality and health beneficial sparkling water
Increasing awareness about health issues related with unhygienic water
Threat
We offer a sparkling water that is pure and high quality product with a price lower
than other imported sparkling water in the market.
We offer a product that is health beneficial when comparing it to locally available
bottled water.
Health Benefits: There are many health benefits of sparkling water compare to
bottled water in the market.
Price: The price of our sparkling water will be much lesser imported sparkling water.
Differentiation: Our sparkling water will first one to be produced locally and differs
from all locally bottled water in market.
Quality Water: There are only few companies in Nepal that supply high quality
drinking water in the market. Therefore we can establish our product as a top quality
provider of sparkling water.
Superior customer service: Company will provide superior customer service in all
aspects of the company operations.
Environment Friendly: All of bottles will be recyclable hence helps minimize the
environment degradation.
Base for cocktails and hard drinks: The sparkling are best used as base for cocktails in
bars and restaurants and for those people who drink whiskies with water or soda,
sparkling water is best complement for them to enjoy their drinks rather than using
water or soda.
Advertising
The Company will create marketing campaigns within local newspapers Kantipur and
Healthy Life magazine of ECS media, social media platform like Facebook, twitter, Google + ,
and promote the business through word of mouth advertising.
Trade and Consumer Shows
Attendance and exhibits at local home and mall shows is also planned, to keep the Sparkling
Bottled Water name constantly in front of consumers.
Placements
The company will be focusing on placing sparkling bottled water in two places
Hospital and Clinics: People who are sick and who are health conscious are main
stream people coming to hospitals and clinics. Since sparkling water has additional
health benefits; it will be able to meet demand of the consumer visiting hospitals.
Restaurants, Pubs and Hotels: Sparkling water is one of good base for cocktails and
whiskies hence these areas will be heavily targeted with different promotional
campaigns in these areas.
Target Sales
30%
40%
60%
70%
90%
90%
= 5760000
Projected Sales( Bottle)
17,28,000
23,04,000
34,56,000
40,32,000
51,84,000
51,84,000
10
No. of Cases
1,44,000
1,92,000
2,88,000
3,36,000
4,32,000
4,32,000
Processing System
Filing System
Packing System
Figure 4: Sparkling Water Production Process
Water is pumped through raw water pump and store in the raw water tank
When water come through the machine, silica sand filter will stop suspend
substance, protect the machine, clean the water and cleanses the equipment
itself which will prolong the life of machine.
11
After silica sand filter it passes through active carbon filter for further
filtration.
Precision filter is made of stainless steel as a small tank which contains
precision filter membrane, which allows only un-treated water go through
the membrane, and does not allow any liquid go through another part, so it
can filter the un-treated water.
Reverse osmosis is made up of pre-process part, 1st reverse osmosis and
ozone process and so on, and applied to unit structure.
2) Processing System
The processing system includes following parts
Beverage Pump
Mixing Tank
Water Chiller Tank: The tank contains compressor using Freon F-12 as
refrigerant and pressure sensor, and temperature regulator for automatic
controlling
Beverage mixing machine: It is used for mixing and improving the proportion
of water and carbon dioxide. It adopts foreign advanced technologystatic
mixer to lighten water layer, increase carbonizing time, assure mixing result
and deoxying. It adopts high-quality water pump and SEIMENS electrical
equipment and other parts to form complete automatic control system.
3) Filling System
The filling system compromises of following parts and equipment
Rinser Station: Rinser station contains 304 stainless steel rinser heads, water
spray style inject design, more save water consumption & more clean, 304
Stainless steel Gripper with plastic pad to ensure minimal bottle crash during
washing and 304 stainless steel washing pumps.
Filling Station: It has accurate, high precision filling nozzle together with
vacuum pump regurgitant system, to ensure the high filling precision, ensure
same filling level with adjustable filling temperature. When there is no bottle
there will be no filling.
Capper Station: Place & capping system, electromagnetic capping heads, with
burden discharge function, make sure minimum bottle crash during capping
and when there is no bottle no capping and automatic stop when there is
lack of caps.
o Auto cap elevator: The machine mainly includes cap storage case,
conveyor pipeline, drive device and appliance control.
o Electric Part & Safe Device & Automation
o Machine Base & Machine Construction
o Conveyer system
o Air conveyer
o Light checker
13
4) Packing System
The packing system contains following parts
Drying machine: It is used to dry the bottle that feeding from the Rinser Filler
Capper with pressured air, make them suitable to the post-packaging
Automatic sleeve shrink labeling machine
Ink jet printer: It is used for automatic printing for date of manufacture, batch
numbers, shift numbers.
Film Shrink-wrapping machine
14
5.2 Scheduling
Effective scheduling is required for smooth operation of the factory. During the first year of
operation, in the summer season where demand is high for water, the factory will be
schedule to run from 7am to 7pm 7 days a week and in off season where demand is less, the
factory will be schedule to run from 9am to 5pm 7 days a week. This will make effective and
efficient use of our resources. We will be making decision on increasing the production
hours on the basis of sales forecast from second year.
15
Human Resources
General Manager
Finance Manager
Marketing Manager
Supervisor/Technician
Workers
Sweeper
Staff
1
1
2
2
6
1
Year 1
Salary
(each)
25,000
15,000
15,000
15,000
8,000
8,000
Total
/month
25,000
15,000
30,000
30,000
48,000
8,000
Human Resources
General Manager
Expert / Supervisor
Workers
5.7 Maintenance
Maintenance is a crucial part of our continued operations of plant. All necessary office
equipment, web site and machinery needs periodic tune up. For this purpose we will hire an
external technician for quarterly service fee.
16
Duration
(Weeks)
6
2
24
3+1(Training)
10 12 14 16 18 20 22 24 26 28 30 32 34 36
(worked)
Activity
Preparing
Business Plan
Registration
of business
Factory
layout
&
establishment
Hiring
professionals
& supporting
staffs
17
Costs of Goods Sold: Cost of production includes all the costs of raw materials such
as water, gases, bottles, labels, cartons, electricity and direct labour.
Salary: Salary of the employees is increased by 10% from the second year. Since the
company starts earning profit from the second year, we decided to increase the
good amount of income for the employees as well as number of employees. The
details of the salary to be distributed to the staffs according to their positions are
shown in Annex 12.
Advertisement: The advertisement expenses are assumed to grow every year by 20%
and would be expanded depending upon the growth of business. The detail of
calculation of advertisement expense is shown in Annex 14.
Lease: A 3 ropani land will be lease for 10 years at Godawari, Lalitpur and the facility
is built. The yearly lease will amount to Rs. 300,000. The rate of lease of land and
building is calculated using data provided by Glacier Food and Beverage.
Construction cost of building data from FNCCI is used to calculate the cost which is
shown in Annex 24. Construction cost of factory building is Rs.1200 per sq. ft. and
since we will be built on 2 Ropani of Land which will equate to 10952 sq. ft. The total
cost of construction of building will be Rs. 1200 x 10952 = Rs. 13142400
Depreciation: The assets of the store are depreciated under diminishing balance
method at the rate of 5% for building, 15% for machinery and 25% for furniture and
office equipment. The calculation is shown in Annex 15.
Interest on loan: The interest rate on loan is 15%, which will be paid annually in 5
years. The loan amortization schedule is shown in Annex 16.
18
Ye ar 1
6,04,80,000
Ye ar 2
8,06,40,000
Ye ar 3
12,09,60,000
Ye ar 4
14,11,20,000
Ye ar 5
18,14,40,000
6,04,80,000
8,06,40,000
12,09,60,000
14,11,20,000
18,14,40,000
3,38,16,000
4,50,48,000
6,75,12,000
7,87,44,000
10,12,08,000
78,000
85,800
1,29,250
1,61,563
2,68,555
2,65,86,000
3,55,06,200
5,33,18,750
6,22,14,438
7,99,63,445
19,50,000
21,45,000
34,81,500
43,51,875
66,58,008
1,33,54,000
32,13,600
1,47,14,800
33,74,280
1,71,85,980
35,42,994
1,97,62,118
37,20,144
2,08,93,878
39,06,151
2,92,967
1,88,10,567
77,75,433
2,92,967
2,05,27,047
1,49,79,153
2,92,967
2,45,03,441
2,88,15,309
2,92,967
2,81,27,103
3,40,87,334
2,92,967
3,17,51,003
4,82,12,442
54,09,715
46,51,721
40,07,028
34,58,117
29,90,257
27,59,458
75,67,975
18,91,994
56,75,981
22,06,834
2,26,01,448
56,50,362
1,69,51,086
15,71,317
2,90,57,900
72,64,475
2,17,93,425
8,40,472
4,43,81,714
1,10,95,428
3,32,86,285
32,40,000
(8,74,282)
(2,18,570)
(6,55,711)
19
Year 0
3,24,00,000
2,16,00,000
5,40,00,000
Year 1
Year 2
Year 3
Year 4
Year 5
77,58,767
58,48,121
69,12,632
1,09,90,930
1,22,91,140
6,04,80,000
6,82,38,767
8,06,40,000
8,64,88,121
12,09,60,000
12,78,72,632
14,11,20,000
15,21,10,930
18,14,40,000
19,37,31,140
3,75,70,000
32,03,616
1,33,54,000
20,28,000
32,13,600
32,40,000
(2,18,570)
6,23,90,646
58,48,121
4,69,20,000
40,00,000
36,84,158
1,47,14,800
22,30,800
33,74,280
27,59,458
18,91,994
7,95,75,490
69,12,632
6,84,48,000
1,20,00,000
42,36,782
1,71,85,980
36,10,750
35,42,994
22,06,834
56,50,362
11,68,81,702
1,09,90,930
8,06,16,000
1,75,00,000
48,72,299
1,97,62,118
45,13,438
37,20,144
15,71,317
72,64,475
13,98,19,790
1,22,91,140
10,12,08,000
2,67,00,000
56,03,144
2,08,93,878
69,26,563
39,06,151
8,40,472
1,10,95,428
17,71,73,636
1,65,57,504
58,48,121
69,12,632
1,09,90,930
1,22,91,140
1,65,57,504
14,64,833
4,47,76,400
4,62,41,233
77,58,767
20
Ye ar 1
58,48,121
37,54,000
96,02,121
300000
13142400
(6,57,120)
3,06,34,050
(45,95,108)
55,350
(13,838)
2,94,600
(73,650)
3,50,000
(70,000)
3,93,66,685
Ye ar 2
69,12,632
56,26,000
1,25,38,632
300000
12485280
(6,24,264)
2,60,38,943
(39,05,841)
41,513
(10,378)
2,20,950
(55,238)
2,80,000
(56,000)
3,47,14,964
Ye ar 3
1,09,90,930
65,62,000
1,75,52,930
300000
11861016
(5,93,051)
2,21,33,101
(33,19,965)
31,134
(7,784)
1,65,713
(41,428)
2,24,000
(44,800)
3,07,07,936
Ye ar 4
1,22,91,140
84,34,000
2,07,25,140
300000
11267965.2
(5,63,398)
1,88,13,136
(28,21,970)
23,351
(5,838)
1,24,284
(31,071)
1,79,200
(35,840)
2,72,49,819
Ye ar 5
1,65,57,504
84,34,000
2,49,91,504
300000
10704566.94
(5,35,228)
1,59,91,166
(23,98,675)
17,513
(4,378)
93,213
(23,303)
1,43,360
(28,672)
2,42,59,562
11,71,867
5,01,40,673
8,78,900
4,81,32,496
5,85,933
4,88,46,800
2,92,967
4,82,67,925
4,92,51,066
1,83,96,384
1,83,96,384
1,47,12,226
1,47,12,226
1,04,75,444
1,04,75,444
56,03,144
56,03,144
0
0
3,24,00,000
(6,55,711)
3,17,44,289
5,01,40,673
3,24,00,000
10,20,270
3,34,20,270
4,81,32,496
3,24,00,000
59,71,356
3,83,71,356
4,88,46,800
3,24,00,000
1,02,64,781
4,26,64,781
4,82,67,925
3,24,00,000
1,68,51,066
4,92,51,066
4,92,51,066
21
Year 1
-1.29
-1.31
0.57
-2.02
Year 2
12.05
11.79
0.45
17.52
Year 3
39.54
34.70
0.32
52.32
Year 4
57.35
45.15
0.17
67.26
Year 5
102.74
67.58
0.00
102.74
Investment
(5,40,00,000)
Cashflow
0
47,54,004
1,03,27,702
2,09,58,114
2,52,51,543
3,62,76,542
Cumulative CF
(5,40,00,000)
(4,92,45,997)
(3,89,18,295)
(1,79,60,181)
72,91,361
4,35,67,904
3.29
Year 2
1,03,27,702
Year 3
2,09,58,114
Year 4
2,52,51,543
Year 5
3,62,76,542
NPV
Rs. 89,53,119.56
IRR
17%
The Net Present Value is positive for the business, which means business will be in profit. So, it would be better to start the business. The
Internal Rate of Return (IRR) is 17%.
22
Year 1
(6,55,711)
(6,55,711)
Year 2
(6,55,711)
56,75,981
40,00,000
10,20,270
Year 3
10,20,270
1,69,51,086
1,20,00,000
59,71,356
Year 4
59,71,356
2,17,93,425
1,75,00,000
1,02,64,781
Year 5
1,02,64,781
3,32,86,285
2,67,00,000
1,68,51,066
Dividend is distributed from 2nd year and In 2nd and 3rd year, around 70% of Net Profit is distributed as dividend and around 80% in the 4th and
5th year.
Year 1
Sales
Fixed Cost
Variable Cost
BEP (%)
VC/Revenue
1-VC/Revenue
BEP in Rupees
6,04,80,000
1,16,44,682
4,64,69,600
0.83
0.77
0.23
5,02,67,683.09
The companys break even sales for first year is Rs. 5,02,67,683.09
23
24
Bibliography
Nepali
Times.
(2000,
August).
Retrieved
December
http://nepalitimes.com/news.php?id=11264#.UtGFsvQW1at
The
Himalayan
Times.
(2011).
Retrieved
December
5,
2013,
from
http://www.thehimalayantimes.com/perspectives/fullnews.php?headline=for+quality+contr
ol&newsid=MTI0NQ==
Cooking
from
Soda
Stream.
(n.d.).
Retrieved
November
http://www.sodastreamusa.com/
USA:
25
2013,
from
24,
Soda
2013,
Stream
from
Annex
Annex 1: Production Plant Cost
Description
Price
Import Duty(5%) Total Cost
Water Production Plant
23961000
1198050
25159050
CO2 Production Plant
2560000
128000
2688000
Cost with Import Duty
27847050
Installation
55000
Air Ticket for Installer
32000
Accomodation
100000
Shipping Cost of Plants
1100000
Total Cost of Production Plant
29134050
Table 13: Total Cost of Production Plant
26
27
28
29
30
31
32
Human Resources
General Manager
Finance Manager
Marketing Manager
Supervisor/Technician
Workers
Sweeper
Total Staffs
Total Expenses per
month
Total Expenses /year
Year 1
Salary
Staff
(each)
1 25,000
1 15,000
2 15,000
2 15,000
6
8,000
1
8,000
Year 2
Total
Salary
Staff
/month
(10%
25,000 1
27,500
15,000 1
16,500
30,000 2
16,500
30,000 2
16,500
48,000 6
8,800
8,000
1
8,800
Total
Staff
/month
27,500 1
16,500 2
33,000 3
33,000 2
52,800 8
8,800
1
Year 3
Salary
(10%
34,375
20,625
20,625
20,625
11,000
11,000
Total
Staff
/month
34,375 1
41,250 2
61,875 3
41,250 2
88,000 8
11,000 1
Year 4
Salary
(10%
42,969
25,781
25,781
25,781
13,750
13,750
Total
Staff
/month
42,969 1
51,563 2
77,344 4
51,563 3
1,10,000 10
13,750 1
Year 5
Salary
(10%
53,711
32,227
32,227
32,227
17,188
17,188
13
13
17
17
21
1,56,000
1,71,600
2,77,750
3,47,187.50
5,32,813
20,28,000
22,30,800
36,10,750
45,13,438
69,26,563
33
Total
/month
53,711
64,453
1,28,906
96,680
1,71,875
17,188
Year 1
Rate
Qty
3 ropani
1
Total
3,00,000
1,31,42,400
2,51,48,000
14,70,000
2,91,34,050
30,000
14,70,000
4
4
15
2
2
3,990
1,990
990
3,290
5,000
15,960
7,960
14,850
6,580
10,000
25,000
50,000
1,17,000
1,17,000
1
1
1
70,000
48,600
9,000
70,000
48,600
9,000
3,50,000
4,47,76,400
3,50,000
Qty
Year 2
Rate
Total
Qty
Year 3
Rate
300000
Total
Qty
Year 4
Rate
300000
Total
Qty
Year 5
Rate
300000
300000
3,96,66,685
3,53,14,964
3,16,07,936
2,84,49,819
54,09,715
46,51,721
40,07,028
34,58,117
29,90,257
3,93,66,685
3,50,14,964
3,13,07,936
2,81,49,819
2,54,59,562
34
Total
Year 1
Year 2
Year 3
9440000
10280000
11960000
36,000
39,600
43,560
18,000
19,800
21,780
24,000
26,400
29,040
12,000
13,200
14,520
43,000
2,000
2,000
1,56,000
1,71,600
1,88,760
2,000
2,400
2,880
97,31,000 1,05,55,000 1,22,62,540
Year 4
13640000
47,916
23,958
31,944
15,972
2,000
2,07,636
3,456
1,39,72,882
Year 5
13640000
52,708
26,354
35,138
17,569
2,000
2,28,400
4,147
1,40,06,316
5,46,000
7,000
6,55,200
7,000
7,86,240
7,000
9,43,488
7,000
11,32,186
7,000
25,92,000
2,00,000
1,00,000
1,00,000
35,45,000
12,000
6,000
15,000
25,000
20,000
31,10,400
1,00,000
1,00,000
1,00,000
40,72,600
13,200
6,000
16,500
27,500
24,000
37,32,480
1,00,000
1,00,000
1,00,000
48,25,720
14,520
6,000
18,150
30,250
28,800
44,78,976
50,000
1,00,000
1,00,000
56,79,464
15,972
6,000
19,965
33,275
34,560
53,74,771
50,000
1,00,000
1,00,000
67,63,957
17,569
6,000
21,962
36,603
41,472
78,000
87,200
97,720
1,09,772
1,23,605
1,33,54,000 1,47,14,800 1,71,85,980 1,97,62,118 2,08,93,878
35
Year 1
Year 2
Year 3
Year 4
Year 5
1,31,42,400 1,24,85,280 1,18,61,016 1,12,67,965 1,07,04,567
6,57,120
6,24,264
5,93,051
5,63,398
5,35,228
3,06,34,050
45,95,108
2,60,38,943
39,05,841
2,21,33,101
33,19,965
1,88,13,136
28,21,970
1,59,91,166
23,98,675
55,350
13,838
41,513
10,378
31,134
7,784
23,351
5,838
17,513
4,378
2,94,600
73,650
2,20,950
55,238
1,65,713
41,428
1,24,284
31,071
93,213
23,303
Vehicle @ 20%
Depreciation
3,50,000
70,000
2,80,000
56,000
2,24,000
44,800
1,79,200
35,840
1,43,360
28,672
Furniture @ 25%
Depreciation
Beginning Balance
2,16,00,000
18396384
14712226
10475444
5603144
Scheduled Payment
6443616
6443616
6443616
6443616
6443616
Principal
3203616
3684158
4236782
4872299
5603144
36
Interest
3240000
2759458
2206834
1571317
840472
Ending balance
18396384
14712226
10475444
5603144
0
1st year
Price per
Quantity
bottle
35
Year 2
Total
6,04,80,000
6,04,80,000
Quantity
Year 3
23,04,000
Total
35
8,06,40,000
Quantity
34,56,000
8,06,40,000
35
12,09,60,000
4,47,76,400
1464833.333
10,14,000
66,77,000
67,767
5,40,00,000
37
Total
Quantity
12,09,60,000 40,32,000
Year 4
Price per
bottle
Total
Year 5
Price per
Quantity
bottle
35 14,11,20,000 51,84,000
14,11,20,000
Total
35 18,14,40,000
18,14,40,000
Particulars
Opening Stock
Cost of goods sold
Closing Stock
Purchase
3,38,16,000
37,54,000
3,75,70,000
Year 2
37,54,000
4,50,48,000
56,26,000
4,69,20,000
Year 3
56,26,000
6,75,12,000
65,62,000
6,84,48,000
Year 4
65,62,000
7,87,44,000
84,34,000
8,06,16,000
Year 5
84,34,000
10,12,08,000
84,34,000
10,12,08,000
Year 6
84,34,000
17,28,000
23,04,000
34,56,000
40,32,000
51,84,000
51,84,000
69,12,000
17,28,000
25,92,000
51,84,000
1,72,80,000
1,20,000
3,38,16,000
92,16,000
23,04,000
34,56,000
69,12,000
2,30,40,000
1,20,000
4,50,48,000
1,38,24,000
34,56,000
51,84,000
1,03,68,000
3,45,60,000
1,20,000
6,75,12,000
1,61,28,000
40,32,000
60,48,000
1,20,96,000
4,03,20,000
1,20,000
7,87,44,000
2,07,36,000
51,84,000
77,76,000
1,55,52,000
5,18,40,000
1,20,000
10,12,08,000
2,07,36,000
51,84,000
77,76,000
1,55,52,000
5,18,40,000
1,20,000
10,12,08,000
38
39
40
35
43.75
48.125
41
Selling Price
8.75
4.375
4.8125
35
43.75
48.125
52.9375
28,18,000.00
78,000.00
8,10,609.58
37,06,609.58
1,44,000.00
25.74
8,03,416.67
2,95,416.67
2,70,000.00
13,68,833.34
9.51
35.25
42
43