BUSINESS PLAN

1.0 GENERAL
Name of the Firm: Malla Spring Waters
Product: Packaged Drinking Water
Location: Hunsur
Type of the organization: Proprietorship
Address: No. 1817. B.M Road Hundsur, Mysore Dist, Karnataka, 571105
Name of the Chief Promoter(s): Karnik Mal
Birth Date: 9 August 1993
1

EDUCATIONAL QUALIFICATIONS

SSC or Below

Degree/Diploma

12th
1.2

J.I.R.S

Commerce

Year of
Passing
2012

Institute

Duration

Achievement/Remarks

WORK EXPERIENCE (Past and Present)

Organisation

1.4

Major Subject

SPECIAL TRAINING

Training in

Institute

Position

Nature of Work

Duration

(i) Promoters annual income

: Rs.20,00,000

(ii) Assets Owned by the Promoter(s)

: Movable
Rs.
Immovable Rs.

(Last year)
5.00,000
5,00.00,000

DETAILS OF THE PROPOSED PROJECT

At present the Indian market is dominated by processed water. The demand for consumption of
mineral water in India has been estimated at approx. 500 million liters of pure water bottles and
the market is expected to grow at a rate of 25-35% per annum.
So to meet this demand and help to supply this demand my project aims at purifying water and
packaging it so as to supply for the demand. It is a manufacturing unit. This project would
require a amount of Rs 5, 00, 00,000 inclusive fixed and working capital.
The unit is proposed to produce 57.55 lakh bottles (1 liter) of packaged drinking water per
annum.
2.1

INTRODUCTION:

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 every
day 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.

Manufacturing process

As the name itself indicates that the proposed concern will purify the water from a water source
that is from the Lakshman Theertha river in such a way that it may be kept 4-7 days at least
as well as it should be a hygienic. The major steps involved on the purification process are given
below:
1.
2.
3.
4.
5.

Water treatment & Purification

Mixing of negligible mineral and necessary for human life.
Pouch Filling
Inspection and Packing
Dispatch

Production Capacity

The unit is proposed to produce 57.55 lakh bottles (1 liter) of packaged drinking water per
annum.

Uses of the product

1. Safe drinking water
2. Can be carried anywhere
3. Very essential a man to live

Users of the product

Anyone can use this product. As water is the most essential material required by human beings.
As water is contaminated because of pollution now days this product can be used by each every
individual to protect them from being affected by diseases affect by contaminated water

Proposed market area

As our firm is a new start up we are planning to target only one state that is Karnataka. In
Karnataka we would first target cities like Bangalore, Mysore, ect.

Assumptions

This project has been drawn on the basis of following assumptions:

1
2
3
4
5
6

7
8
9

Working hours per shift

No. of shift /day
No. of working days /annum
Handling loss of Bottles per year
Working efficiency
Total Period for achieving maximum capacity utilization

8
3
300
5000
75%
From the date of
commencement of
production
Margin Money
25% pf capital investment
Rate of interest of capital
14% per annum
Constriction cost of building, coast of land, labor charges and cost of plant machinery
and equipment have been considered as per prevailing rates in the market.

10

Cost of installation and electrification of machinery and equipment has been taken at
the rate of 10% of the cost of plant and machinery

Marketing strategy
1. Appoint distributers to distribute at a commission.
2. Customize the labeling according to the requirement of hotels and other corporates by
snickering their names on the bottles.
3. Install vending machines in malls and other public places in Mysore District.
4. Use the strategy of think water it should be our water.
5. Appoint college students to distribute our product for a commission ensuring
employment to the younger generation.

PRODUCTION CAPACITY:
It is assumed that the unit is utilizing 75% of the installed capacity.
UTILITIES:
Motive Power: 50 HP

FINANCIAL ASPECTS
A) Fixed Assets
i)
Sl.No

Land & Building

Description

Land 0.5 acres

Amount (in
Rs. )
3,00,000

Built up area required for filtration, raw material storage,

packaging material storage, machinery spare parts, store,
finished goods, office, QC lab, Toilets, Electrical switch
room and miscellaneous etc. 6500 sq.ft. @Rs.800 per sq. ft.

52,00,000

Total

55,00,000

ii)
Plant and Machinery
Sl.No
Description
1
2
3
4
5
6

7
8

9
10
11

12

Alum doses 3 liter/hr dosage

2 nos. pump (1 W +IS) (SS)
Activated carbon filter flow rate 2000 lit/hr
Pressure sand filter flow rate:2000 lit./hr
Softener
Reverse Osmosis system permeate flow 500 lit/hr
consist of 5 micron filter SS-304 PP H.P. Pump with
3 HP Motor Membrane 4 nos.
Pressure vessel
Ozone generator
Capacity 1 gm/hr
Flow fate 1000 lit/hr
UV disinfectant flow rate-1000 lit/hr
Storage tank for pure water capacity :1000lit
Bottling section
Stainless Steel Conveyor: Made of S.S, 8 meter long
for conveying of empty washed bottles onto the
filling machine. The different operations like rinsing,
filling, capping are done on the conveyor. Electrical
Details: 0.5 H.P. with variable speed drive..
Rinsing, Filling, Capping: This machine is designed
to fill 24 bottles per minute for 1 ltr bottle & is
capable to fill 500 ml, 1000 ml, 1500 ml bottles.
Machine speed is depended on the volume to be
filled. The bottles are hold in groups of 6 & moved
on the conveyor together. These grouped bottles are
rinsed by means of spraying pressurized water inside
the bottle. After Ringing the bottles are again placed

Quantity

Amount
(in Rs.)

1
1
1
1
1

4
1

15,61,906.7
5
Say
15,62,000

1
1

1
14,99,025
say
15,00,000/-

13
14

15

iii)

on the conveyor & are loaded on the filling &

capping machine one by one. Filling & capping takes
place by indexing mechanism. There are total 8
indexes.
Change parts for 500 ml and 1500 ml 1 set each
1 set each
Spare for item 2 for 2 years
Shrink Tunnel: This is fitted on the online conveyor
1
to shrink labels and neck sleeves. The labels & neck
sleeves are to be manually inserted on the bottle.
Machine will be provided with suitable capacity
Heaters, Blower, Reduction Gear Box and Electric
Motor, complete in all respects ready to use
Printing Machine ( for mfg. Date & batch nos.)
1
Semiautomatic machine is proposed. This is a table
top coding machine with a printing area of 35 mm x
25 mm & capable of printing 3 variable line message
on labels or caps.
Electrification and installation charges @ 10% of
plant and machinery
Total

2,04,053

3,26,605
35,92,658

Other fixed Assets

Sl.No

Description

1
2
3
4
5

Cost of furniture
Cost of deep bore tube well for water reservoirs
Security deposit to Electricity Deptt.
Preliminary and pre-operative expenses
Delivery van
Total

Amount (in
Rs.)
50,000
1,50,000
1,00,000
1,50,000
3,50,000
8,00,000

Total Fixed Cost

Sl.No

Description

1
2
3

Land and building

Plant and machinery
Other fixed assets
Total

B) Working capital (per month)

Amount (in
Rs.)
55,00,000
35,92,658
8,00,000
98,92,658

i)

Raw material

Sl.No

Description

PET/PVC bottle including cap labels etc. 1 lit size @ 4/- 4.80
lakhs bottles
Chemicals and Reagents etc. (L.S.)
Corrugated boxes, strips tap etc.
Total

2
3
ii)

Designation

1
2
3
4
5
6
7
8
9
10

Factory Manager
1
Clerk-cum Typist
1
Store cum purchase officer
1
Accountant cum cashier
1
Sweeper
1
Production Manager
1
Lab Assistant
1
Supervisor
1
Skilled worker
4
Unskilled worker
4
Total
Perks and benefits @ 8.5% of salary and wages
Total say
Utilities

Sl.No
1
2
iv)
Sl.No
1
2
3
4
5
6
7
8

50,000
2,50,000
22,20,000

Salary and Wages Designation

Sl.No

iii)

Amount (in
Rs.)
19,20,000

No.

Description
Electricity
Fuels and others
Total

Salary
8000
6000
5500
7000
2000
10000
5000
6000
3500
2500

Amount (in `Rs)

1,00,000
5,000
10,5000

Other contingent expenses

Description
Postage and stationery
Telephone/Fax charges
Consumable stores
Repairing and maintenance
Transport Charges
Advertisement and Publicity
Insurance & Taxes
Other Expenses
Total

Amount (in `Rs)

500
5,000
1,000
5,000
2,500
5,000
500
10,000
29,500

Amount
(in `Rs)
8,000
6,000
5,500
7,000
2,000
10,000
5,000
6,000
14,000
10,000
73,500
6,248
80,000

Working capital per month

Sl.No
1
2
3
4

Description
Raw material
Salaries & wages
Utilities
Other contingent expenses
Total

Amount (in `Rs)

2,22,000
80,000
1,05,000
29,500
2,43,4500

Total capital investment

Sl.No
1
2

Description
Amount (in `Rs)
Fixed assets
98,92,658
Working capital (for 3 months) 73,03,500
Total
1,71,96,158

FINANCIAL ANALYSIS
A) Cost of production per annum
Sl.No
1
2
3
4
5

Description
Working capital (for 1 year)
Depreciation on building @
5% p.a.
Depreciation on plant and
machinery @ 10%
Depreciation on furniture @
20%
Interest on TCI @ 14%
Total

Amount (in `Rs)

2,92,14,000
2,60,000

Description
By sale of 57.55 lakh bottles
@ 6.25/- bottle

Amount (in `Rs)

3,59,68,750

Description
Profit = Turnover- Cost of

Amount (in `Rs)

37,18,000

3,59,265
10,000
24,07,462
3,22,50,727
Say 3,22,50,000

B) Turnover
Sl.No
1
C) Profit (per annum)
Sl.No
1

production
ie; 359,68,000 3,22,50,000
D) Net Profit ratio
Sl.No
1

Description
Net Profit ratio = Profit x
100 / Turnover
ie; 37,18,750 x 100 /
3,59,68,750

Amount (in `Rs)

10.34

Description
Rate of return = Profit x 100 /
Total capital investment
ie; 37,18,750 x 100 /
1,71,96,158

Amount (in `Rs)

21.63

Description
Depreciation on building @
5% p.a.
Depreciation on plant and
machinery @10%
Depreciation on furniture
@20%
40% of salary and wages
40% utilities and other
expenses
Total interest
Tax and insurance
Total

Amount (in `Rs)

2,60,000

Description
Break even point = Fixed cost
x 100 / Fixed cost + Profit
ie; 40,66,327 x 100 /
40,66,327 + 37,18,750
= 40,66,32,700 / 77,85,077

Amount (in `Rs)

52.23

E) Rate of return
Sl.No
1

F) Fixed Cost
Sl.No
1
2
3
4
5
6
7

3,59,265
10,000
3,84,000
6,39,600
24,07,462
6000
40,66,327

G) Break Even Point

Sl.No
1