Angel Soap

ACADEMIC YEAR:-
2012-2013
ROLL NO.:-
53
COLLEGE:-
R.P. BHALODIA COLLEGE, RAJKOT
PREPARED BY:-
MANALI VEKARIA J.
SUBMITTED TO:-
SAURASHTRA UNIVERSITY
GUIDED BY:-
PROF.SAVAN RUPALA
CLASS:-
BBA SEM-5
1
ACKNOWLEDGEMENT
“Planning is necessary in every walk of life. For successful planning guidance is

necessary.”
Many individuals have supported me during the completion of this project.
First of all, I would like to thank out principal for providing me an opportunity for the
study of B.B.A. at R.P.Bhalodia College and Prof. Savan Rupala out faculty, who provided
me with invaluable guidance throughout my project.
Lastly, I would thank my parents my sister & my friends, whose words have
encouraged and inspired me throughout the preparation of the project.
Date: -
Signature
2
PREFACE
As students of final year of the B.B.A. course conducted by Saurashtra University, we

have one special subject called product project report this project report is prepared as a part
of it.
Preparing & presenting the details regarding a product & submitted to Saurashtra
University in the form of report. This report has been prepared under the prescribed format of
Saurashtra University, Rajkot for practical subject.The subject entrepreneurship and
management of a small-scale business has been included in the syllabus of T.Y.B.B.A. with a
view to create and develop entrepreneurial skill up afresh industrial.
Today in the growth rate of Indian economy, contribution of small-scale industry is

very important along with the giants of India. The contribution of small-scale industry is
ground 40% in the economic growth rate of the country.
Hence, it is suggested by the University to undergo a short training to manage small

unit efficiency right from the inception to avoid all the difficulties that comes in the way by
keeping in mind these views and objectives. I am submitting this report.
3
DECLARATION
I, the undersigned MANALI J.VEKARIA a student of T.Y.B.B.A. hereby declare

that the project work presented in this report is my own and has been carried out
under the supervision of Prof. Savan Rupala of R.P.BHALODIA COLLEGE, RAJKOT.
Date :
Place : Rajkot
4
INDEX
Sr. No. Particulars Page No.
1 General Information
2 Production Details
3 Marketing Details
4 Financial Details
5 Human Resource Details
6 SWOT Analysis
7 Future Plans
8 Conclusion
9 Bibliography
5
6
INDEX
1 General Information
2 Proprietor’s Profile
3 History & Development of Product
4 Utility of Product
7
INTRODUCTION
The development and importance of small-scale industries has increased to a large

extent immensely in this country. There is a great scope for expansion of small scale units
because it requires less capital at the same time more opportunities for development. The
share of the small scale industries in the overall GDP of the country is about 45%. Thus we
can say that the small-scale industries play a vital role in the Indian economy.
Small scale industries play a key role in industrialization of a developing country.

They provide large scale employment, optimal utilization of resources, better use of
machineries, lower risk. They offer a method more equitable distribution of national income
and facilitate effective mobilization of resources of capital and skills which would otherwise
remain unutilized. These industries stimulate growth of industrial entrepreneurship and
promote a more flexible pattern of ownership and location.
8
HISTORY OF SOAPS
In 2800 B.C. archeologist found soap like material in clay cylinders during an
excavation of ancient Babylonian site.
According to an ancient Roman legend, soap got its name from Mount Sapo, a place
where animals were sacrificed. People found that a mixture of melted tallow (otherwise
known as animal fat) and wood ashes made their bodies and clothing clean.
As Roman civilization advanced in around 312 B.C., Galen, a Greek physician

recommended soap for both medicinal and cleansing purpose. Elsewhere in the world,
bathing became a common custom. In Italy, Spain and France quick supply of olive oil made
early soap making possible. England began making soap in the 12th century. Soap was
heavily taxed as a luxury item in several countries in the early 19th century. When taxes were
lowered, soap became available to ordinary people.
In 1971, a French chemist named Nicholas Leblanc patented a process for making soda ash,
or sodium carbonate from common salt. Chevreul & Solvay discovered the ammonia process
and the invention of electricity allowed this industry to become much more productive. Many
new types of soaps developed including mild bath soaps, soaps for washing clothes, and other
household chores.
We all prefer to start our own business. Hence, I am starting my own business. My
venture would be titled, as “ANGEL SOAP INDUSTRY” ‘ANGEL soap industry’ would be
a soap manufacturing company. ‘ANGEL soap industry’ would be a small-scale industry
located in the Shapar Industrial Estate in Rajkot. The main product of my concern will be
“Bathing Soaps”.
9
PROJECT AT GLANCE
1 Name & Address of the unit : ANGEL SOAP INDUSTRY

Plot No. 25,
Metoda G.I.D.C.,
Kalawad Road,
Village – Lodhika
Dist. – Rajkot
2 Form of Organization : Sole proprietorship
3 Phone Number : (0281) 02 0281-2571492
4 Fax Number : 0281–2571491
5 E-mail address : starsoaps@yahoo.com
6 Year of Establishment : 2012
7 SSI Registration No. : Application has been made
8 Proprietor : Miss Manali J. Vekaria
9 Product : Bathing Soaps
10 Brand name : “ANGEL”
11 Slogan : “ANGEL– Feel like heaven”
12 Type of Organization : Manufacturing concern
13 Accounting Year : April 2012– March 2013
14 Size of the unit : Small Scale Industry
10
PROPRIETOR’S PROFILE
Name :- Miss. Manali J. Vekaria

Address :- Akruti Appartment,
Uni. Road,
Rajkot – 360 005.
Age :- 20 Years
Educational
Qualification :- Bachelor is Business Administration
(B.B.A.)
Capital
Contribution :- 55%
Nature of Work :- Overall management.
11
12
INDEX
1 Introduction Of Production 9
2 Details of the Location of Plant 12
3 Raw materials & Suppliers 14
4 Details of Machineries 17
5 Production Process 21
6 Pollution Control 28
13
INTRODUCTION
Broadly, production means conversion & raw materials into semi finished & finished
good. Every entrepreneur strives to ensure maximum production in the best manner at the
lowest cost & generate maximum profits.
The production department is a very important part of an organization. It is a place
where the raw materials are transformed into finished or semi finished or semi finished goods
through processing & thus their form utility is increased.
“Production management is the process of planning organizing diverting and
connecting the activities of the production function is the conversion of raw materials into
finished products.”
14
JUSTIFICATION OF LOCATION
It is very important for every firm to decide about the establishment of plant. At the
time of selection of place for a unit, we have to take into consideration many point. It
involves cost, which affects the overall profitability of a unit. Moreover there are other
environment consideration and infrastructures facilities to which have to be kept in mind
while selecting a plant site.
The unit will be located at Metoda (Village – Lodhika) Dist. – Rajkot in Gujarat State.
The various factors considered whole selecting the location are as follows: -
1. Machines Availability:
The required machineries for soaps are available from Hunan which is located in China.
2. Raw Materials :
The raw materials required for soap is procured From different cities of india.
3. Infrastructures Facilities :
The infrastructures facilities like railway station (Within 30 kms. In Rajkot &
Gondal), airport (in Rajkot), road transport, post office, banks, telephone exchange
Connecting through STD, ISD, & FAX are available.
Shapar is connected to national highway for transportation of raw materials and

finished goods. The local transports are also easily available. Road transport is more
commonly used as it is cheaper than other modes & delivery at site is also possible.
15
The supply of water and electricity is also available. The requirement of electricity is
5000 kw p.m. which is available from G.E.B. Industrial Estate
4. Availability of Labour :
Skilled & semi skilled labourers are available at Reasonable rates in Rajkot.
Besides the site is connected with Rajkot city, which is a big commercial city.
16
PRODUCT DETAILS
Soap is a product that many people might take for granted or consider rather ordinary,
but for some, lathering up can be a treasured part of a morning or nightly routine.
Scented, or unscented, in bars, gels and liquids, soap is a part of our daily lives.
USAGE: -
Soap manufacturers originally targeted their products to the lowest income strata in
well as rural areas, positioning their brands as a way to remove dirt and clean the body. For
some brands, that positioning persists even today with a focus on removal of body odour and
keeping the user healthy. However, soap positioning is moving towards skin care as a value
added benefit.
The usage of soaps has increased manifold with changing life styles, growing
purchasing power, increased awareness of the consumer to brands offering superior value and
the spread of audio-visual media.
“ANGEL” is a bathing soap, which removes body dirt and odour providing soft, silky
skin and refreshing tint.
FEATURES: -
“ANGEL” is a bathing soap with fragrance and extracts of real watermelons. The
fragrance of this soap is unmistakably unique and transports you directly to the refreshing
world.
The USP of “ANGEL” is that no other soap in Indian soap industry presents the
formula of using watermelon scents. Moreover, the whole of India, especially Saurashtra
region has to face scorching heat and “ANGEL” would provide refreshing tints in such a
climate with its fragrance and ingredients. “ANGEL” also promises soft skin with its unique
composition.
17
INGREDIENTS OF SOAP
Ingredients Functions
 Aqua Solvent
 Sodium Laureth Sulfate Surfactant
 Cocamidopropyl Betaine Surfactant
 Acrylates Copolymer Structurant
 Parfum Fragrance
 Mica Colourant
 PEG-75 Shea Butter Glycerin’s Skin Conditioning Agent
 Guar Hydroxypropyltrimonium Chloride Skin Conditioning Agent
 Disodium EDTA Sequestrant
 Sodium Chloride Viscosity Controlling Agent
 Bis-PEG/PPG-20/20 Dimethicone Viscosity Controlling Agent
 Sodium Hydroxide pH Adjuster
 Citric Acid pH Adjuster
 Sodium Benzoate Preservative
 Benzyl Salicylate Fragrance
 Butylphenyl Methylpropional Fragrance
 Citronellol Fragrance
 Geraniol Fragrance
 Hexyl Cinnamal Fragrance
 Limonene Fragrance
 Linalool Fragrance
 CI 15985 Colourant
18
DETAILS OF SUPPLIERS OF RAW MATERIALS
1. Aqua:-
Western india chemical corporation
Vadodara,Gujarat
2. Sodium Laureth Sulfate:-

Vikas chemaical agencies
5335, Gandhi Mkt, Sadar Bazar,
Delhi – 110006
3. Cocamidopropyl Betaine
Altret performance chemicals
12/2881 Altret House, Sayedpura Main Road,
M G Road, Surat – 395001
4. Acrylates Copolymer
Vikram thermo india ltd.
101, Classic Avenue, Opp Sales India,
Ashram Road, Ahmedabad – 380006
5. Perfume
v.v. deepa aromatics pvt. Ltd.
20, Kasturi Building, 1st Floor, Opposite H P Building, J Tata Road,
Churchgate, Mumbai – 400020
6. Mica
Caltron Clays & Chemicals Private Limited
Ashoka Super Market, S. V. Road,
Goregaon West, Mumbai - 400 104
19
7. PEG-75 Shea Butter Glycerides
8. Guar Hydroxypropyltrimonium Chloride
9. Disodium EDTA
Ravi Drugs & Intermediates
Shop No. 2, No. 1/172 Kamarajar Street,
Thoraipakkam, Chennai - 600 097
10. Sodium Chloride

Triveni chemaicals
No. 135, G I D C , Vapi, Pancharatna Char Rasta,
vapi gidc, Vapi – 386195
11. Bis-PEG/PPG-20/20 Dimethicone

Digital utilities
Village Nangal Gujran, 33 Feet Road,
Ballabgarh, Faridabad – 121004
12. Sodium Hydroxide

Triveni Chemicals
No. 135, Pancharatna Char Rasta, G. I. D. C.,
Vapi - 396 195, Gujarat, India
13. Citric Acid

Chemtex Speciality Limited
No. 33, Brabourne Road, Kolkata - 700 001,
West Bengal, India
20
14. Sodium Benzoate
Viraj industries
212, 2nd Flr Toral, Rajkot, Jawahar Road,
Jawahar Road, Rajkot – 360001
15. Benzyl Salicylate

Pushpak organics india pvt ltd.
A/2 22/3 Gidc Ind Est, nandesari industrial estate,
Vadodara – 391340
16. Butylphenyl Methylpropional
17. Citronellol
South india aromatics
1815,Gidc Phase 3,Vatva, Vatva Gidc,
Ahmedabad – 382445
18. Geraniol
Shailesh surgical
L/8, Manhattan, Opp Medi Surge Hospital, NR Lions Hall,
Mithakhali, Ahmedabad – 380009
19. Hexyl Cinnamal

Shree sadguru enterprises
Plot No J/7829 Gidc Estate, Ankleshwar,
Ankleshwar – 393002
20. Limonene
Dhruv aroma chemicals
12 Adarsh Nagar Soc, Nr Municipal Water Tank,
Chani Road, Vadodara – 390002
21
21. Linalool
Menthe & allied products limited
No. 309 - 311, 3rd Floor, Pragati Tower, Rajender Place,
New Delhi, Delhi - 110 008
22. CI 15985
Deepa enterprise
No. 1, Vaid Wadi, Gondal Road, Near Railway Crossing,
Rajkot, Gujarat - 360 004
23. CI 47005
Deepa enterprise
24. CI 77891
Deepa enterprise
22
MACHINERIES
The machineries which are used in manufacturing soap are as under:
No Description Unit price
1 Trio-muller 40,000RMB
2 Mixing machine 25,000RMB
Double-screw
3 Vacuum 140,000RMB
plodder
4 Vacuum pump 5,000RMB
Semi-
finished
5 10,000RMB
product
conveyor
Finished-product
6 8,000RMB
conveyor
Body soap cooling

and cutting
7 machine(Li 70,000RMB
near guid
type)
8 Heater For free
23
MATERIAL HANDLING EQUIPMENT
Material handling equipments move materials from one place to another for the
purpose of processing.
The Material handling equipment used would be –
1. Conveyor
Conveyor is used to move materials of Uniform loads between fixed points.
2. Plastic Trays
They are used to transfer materials manually.
Specifications regarding material handling equipment:
Number Particulars Qty Price (Rs.) Total amt.
1 Conveyor 1 50,000 75,000
2 Plastic Trays 20 225 4,500
Total 79,500
24
MANUFACTURING PROCESS
The manufacturing process for manufacturing ‘ANGEL Soaps’ is as under –
STAGE – 1 The Mixing Stage
Add all ingredients in trio muller. Grind within 10 minutes. Then add color,
perfumes and additives. Then it will add to mixing machine. Mix for 20 minutes. Then
discharge the whole mixture and add in double screw vacumm pump.
STAGE – 2 Conversion of mix-mass into soap pallets
Discharge material with way of screen is compressed. A screen on double

screw vacuum pump converts it into pallets with the use of pressure.
STAGE – 3 Conversion into ribbon form
Add pallets to semi finished conveyor to convert it into ribbon form. This
would break any noodles or any granuinue particles into fine pieces and make the mixture
homogenous. Two roll mills are sued. The first roll converts into medium ribbon while the
second roll mill converts it into fine ribbon form.
STAGE – 4 transferring stage
The conveyor then feeds the ribbon the body soap cooling and cutting machine.
25
STAGE – 5 the final stage
The body soap cooling and cutting machine is like the double screw vacuum
pump. The first part of it converts the ribbon into pallets and the second pushes the pallets
into the dye to convert it into a long soap bar. The soap bar then goes into the cutting machine
and is cut into pieces. This piece then goes into a heater that heat and gets cut into soap cakes.
The soap cakes then to into a foot operated stamper and get stamped into a shape desired with
a brand name of it.
26
POLLUTION CONTROL AND SAFETY MEASURES
In recent era, most of the companies which are making soaps, they are producing the
smoke pollution by way of chimneys and so that it causing the global warming. So that the
smoke in that industrial area is gradually increased which invites various types of diseases.
But in the soap making Process, the pollution is not created. So that its main
beneficial for our organization that it is totally free of pollution. The great advantage of our
firm is its free from pollution because it was not created any dust which was harmful or
injurious to the health. Therefore, there is no any requirements to taken a step or pollution
control measures.
27
28
INDEX
1 Introduction 30
2 Market Potential of Product 31
3 Distribution Channel 32
4 Promotional Activity 33
29
INTRODUCTION
Marketing management is distant from managerial functions and is termed as

operative function. Managerial functions they their best to produce the maximum quantity of
goods at minimum cost, but if the sales does not keep pace with the increase of the output
managerial functions are useless.
Marketing is a term which has got different meanings for different groups. For
housewives marketing mean shopping for sales presents it is serving etc.
According to Heavy Honsen, “marketing involves the design of the products

acceptable to the customers and the transfer of ownership between seller & buyer.
It also ensures that the products great goodwill & also provided after sales services as
and when needed at reasonable prices.
Thus, the marketing department has a key role in the company.
30
MARKET POTENTIAL
Soap is a product that many people might take for granted or consider rather ordinary,
but for some, lathering up can be a treasured part of a morning or nightly routine.
Scented, or unscented, in bars, gels and liquids, soaps is a part of out daily lives. At
the end of 2000, soap was a $ 1.032 million US dollars (Rs. 4500 crores) business in India.
India is a vast country with a population of 1030 million people. Household

penetration of soaps is 98%. People belonging to different income levels use different brands,
which fall under different segments but all income levels use soaps, making it the second
largest category in India (detergents are number one). Rural consumers in India constitute
70% of the population. Rural demand is growing with more 7 more soap brands being
launched in the discount segments targeting the lower socio-economic strata of consumers.
31
COMPETITORS
Now since household penetration of soaps is 98% and as it is second largest category
in India after detergents, the Soap Industry in India is flourishing with products ranging from
super premium soaps by MNC’s to carbolic soaps made by local.
Now, on the national front, there are 5 major competitors:
[1] Hindustan Lever Ltd. (HLL)
Hindustan Lever Ltd. is India’s largest packaged mass consumption goods company.
Hindustan Lever is the leader in soap industry with a 65% share. Their brands include
LIFEBUOY, REXONA, LIRIL, LUX and BREEZE.
32
[2] Nirma
Nirma is the Rs. 17 billion detergents, soaps and personal care products brand, and
second largest in the Indian bathing soaps market. It offers varieties like NIRMA BATH,
NIRMA BEAUTY SOAP, NIRMA PREMIUM, NIRMA LIME FRESH, NIRMA
SHIKAKAI SOAP, NIMA – Rose, Lime and Sandal. Nirma sells 100000 tones soaps every
year. Nirma has picked up a substantial 14% share in the 4.5 lakh tone popular segment of the
toilet soaps market.
[3] Godrej India Ltd.
Godrej consumer Products Ltd. (GPCL) is a major player in the Indian soap market.
Godrej total soap volume is 25000 tones per annum. Godrej has a share around 7% in this
category. They are among the largest marketer of toilet soaps in the country with leading
brands such as CINTHOL, FIARGLWO, and GODREJ NO.1.
[4] Wipro
Wipro consumer care is yet another principal player enjoying a 4% market share.
Wipro has important brands of soap in its portfolio like SANTOOR, SHIKAKAI AND
BABY SOFT.
33
[5] Colgate – Palmolive
Colgate Palmolive deals in fresh natural products that include bath soaps and liquid
hand washes. Palmolive’s total soap volume is 8000 tones. Colgate – Palmolive has a share
of 2%. The soaps are available in varieties such as PALMOLIVE EXTRA CARE,
PALMOLIVE NATURALS, PALMOLIVE AROMA THERAPY SOAP – Energy and Anti
stress.
[6] Others
(1) DETTOL soap by Reckitt & Colman of India Ltd. (RCIL) is a front-runner in the
Rs. 50 crores antiseptic category. It has a share of 70% in the antiseptic category whereas 10
to 12% market is covered by SALVON (J & J and HLL)
(2) Another player is Karnataka Soaps & Detergents Ltd. (KSDL). For years now,
KSDL has been surviving on the fortunes of the singular brand – MYSORE SANDAL
SOAP. It has tremendous equity in South where it commands market share of about 18%.
(3) Johnson & Johnson has two popular brands – BABY SOAP and KIDS SOAP.
(4) DOVE from VVF Industries is a brand consisting of a range of soaps that offer
gentle protection to the child. It is cheaper than the J & J baby soap.
34
DISTRIBUTION CHANNEL
There is no specific channel for this unit. But for the sale of classifying the
distribution channel we can say that this unit follow “Zero Level” i.e. manufacture to
consumer directly. The kind of channel of distribution to be used by ANGEL SOAP company
understood in the good once with the help of following chart.
Manufacturer
Consumer Directly
It indicates that the buyers are coming at the site and buy their quantity and take in
their own vehicles.
35
PROMOTIONAL ACTIVITIES
Any paid form of non-personal presentation and promotion of ideas, goods or services
by an identified sponsor is known as advertising. Advertisement is a major promotion tool
that a company uses to target buyers and sellers. In competitive business world of
transmission of ideas, thoughts, values and developments, one cannot imagine a world
without advertising.
Itself promotion is a very fine devise of demand creation and demand stimulation and
can contribute a lot of investment, economic growth, rising income, rising standard of living.
It is paid communication of goods, services or ideas by an identified sponsor.
Our organization is newly established so our product is also new for the market also.
Our product requires too much efforts to get success in the market.advertising is the best
option for the promotion of the product because advertising can attract more consumers than
any other promotional tools.
36
37
INDEX
1 Meaning & Importance
2 Organisation Chart
3 Time Fitting Scheduling
4 Total No. Of Employees
5 Recruitment
6 Selection
7 Employee Welfare & Safety
8 Production & Implementation Schedule
38
INTRODUCTION
In simple words,
“The objective of personnel management is to understand what has happened and is

happening and to be prepared for what will happen in the area of working relationships
between the managers and the managed.”
According to Edward Flippo,
“Personnel Management is the planning organizing; directing and controlling of the

procurement, development, compensation, integration, maintenance and separation of human
resources to the end that individual organizational and social objective are accomplished.”
Human resource management cannot be separated from the basic management

function. The scope of HRM is very wide; it covers labour, welfare and industrial relations
aspect. HR managers do not manufacture or sell goods but they do contribute to the success
and growth of an organization by advising employees are workers working in the
organization. Human resource management is concerned with employees as individuals as
well as groups It is the task of dealing with human beings in an organization. It is the process
of bringing people and organization together so that the goals of each are met. Human
Resources are most important element in an organization.
39
ORGANIZATION CHART
Proprietor
Personnel Production Sales Finance

Department Department Department Department
Employees Sales Manager Accountant
Packing Foreman Chemist

In charge
Workers Workers
40
TOTAL NO. OF EMPLOYEES
particulars No. of employees
Total No of workers 6
Skilled 3
Semi-Skilled 2
Unskilled 1
Other Employees 13
Production Manager 1
Sales Manager 1
Packing In-Charge 1
Stock Officer 1
Salesman 3
Accountant 1
Chemist 1
Clerk cum typist 1
Foreman 1
Peon 1
Watchman 1
TOTAL 19
41
RECRUITMENT
RECRUITMENT: Recruitment ordinarily means obtaining fresh supplies but in the

context of personnel management it is activity & discovering job seekers for the present
&future needs of the organization.
In the world of Filip Po “recruitment is the process of seeming for prospective

employees and stimulating item to apply for jobs in the organization.”
In our organization for the recruitment, top level needs minimum graduation, middle
level needs minimum higher education and bottom level needs basic knowledge.
Recruitment Sources
Internal sources External sources
1) Transfer 1) Advertisement
2) Promotion 2) Education institutes
3) Relative & friends 3) Placement agencies
4) Labourer contractor
42
SELECTION
SELECTION: Managing people is not easy but it can be made easier if you make sure
that you have selected the right people in the first place. And also it said that “selection of
people is easy but selection of right people is difficult task.” The selection procedure is
concerned with securing relevant information about an applicant is secured. The objective of
selection process is to determine whether the applicant meets the qualification for a specific
job and to choose the applicant who is most likely to perform well in that job.
Thus an effective selection program is a non random process because those selected
had been choose on the basis of the assumption that they are likely to be “better” employees
then those who have been rejected. Selection process or activities typically follow a standard
pattern being with an initial screening of applicant, interview and concluding with final
employment decision. The selection procedure of our organization is quite simple. The stages
of including in the selection process are as follows.
News paper advertisement
Receipt of application
Screening
Arrangement and interview
Selection
Placement and confirmation
43
EMPLOYEE WELFARE AND SAFETY
Besides providing wages and salaries to the employees, organisation arranges an

extensive meal for workers and all the staff members after every two or three months in a
year to encourage them and thereby boosting their morale over and above this, it also
provides bonus as compulsory or mandatory according to Bonus Act.
Itis also provided Provident Fund to the permanent employees and other officers. It is
deducted as P.F. from their basic salary and same is contributed by the organisation.
The refreshment like tea and coffee is provided by unit thrice in a day. The
management is also arranges causal threats of ice-creams and snakes almost once in a month.
In addition to this, firm is also arranges picnic once in a year.
The company is also provides Insurance to his all the employees. Thus wages and
salary is very important aspect as it is life blood and basic requirement of employees.
44
IMPLEMENTATION SCHEDULE
I take a maximum of 8 months to implement this type of project. The time required
for completing each activity at the project till commercial production is as follows:
No Activity Completion time
1 Preparation of Project 15 days
2 Selection of Site 45 days
3 Registration of SSI 15 days
4 Availability of finance 30 days
5 Construction of Building 6 months
6 Arrangement of Machines 30 days
7 Erection & Electrification 30 days
8 Recruitment of Personnel 15 days
45
46
INTRODUCTION
The finance function covers both acquisitions of funds as well as their optimum
allocation in various sources. In past, the main function of finance manager is only to find out
sources of finance wile. In modern era, the main function of finance manager is to find out
sources of finance and their optimum allocation into various sources.
In Simple Words,
“Finance means procurement of funds and their effective utilization in the business”
Hoagland Says,
“Financial Management is concerned mainly with such matters as how a business

corporation raises its finance and how it makes use of it.”
J. C. Van Horne Says,
“Financial Management is concerned with the acquisition of funds, financing and

Mgt. of assets with some overall goal in mind.”
47
FINANCIAL DETAILS
1.FIXED CAPITAL
(1) LAND
Number Particulars Area Rate Amount
1 Land 4500 sq. feet 2150 9675000
2 Stamp Duty --- --- 150000
3 Registration --- --- 15000
4 Advocate Fees --- --- 15000
Total 9855000
(2) BUILDING
Number Particulars Area*rate Amount
1 Build up area 3100*1080 3348000
2 Component parts 1400*1080 1512000
Total Area 4500 sq.feet 4860000
48
(2) PLANT AND MACHINERIES
No. Particulars Qty amount total
1 Trio muller 1 348740 348740
2 Mixing machine 1 217950 217950
3 Double screw vacumm plodder 1 1220520 1220520
4 Vacumm pump 1 43600 43600
49
5 Semi finished product conveyor 1 87180 87180
6 Finished product conveyor 1 69750 69750
7 Body soap cooling and cutting machine 1 610260 610260
8 Heater 1 free -
9 Dies and moulds 5 12000 60000
10 Conveyor 1 75000 75000
11 Plastic trays 20 225 4500
12 Tools 5 1000 5000
Total costs of machineries 2742500
50
(2) OTHER FIXED ASSETS
Number Particulars Qty amount Total
1 Delivery Van 2 300000 600000
2 Furniture --- 60000 60000
3 Computer 4 30000 120000
Total 780000
TOTAL FIXED ASSETS:
Number Particulars Amount
1 Land 9855000
2 Building 4860000
3 Plant & Machineries 2742500
4 Other Fixed Assets 780000
TOTAL FIXED ASSETS 18237500
51
2. WORKING CAPITAL
(1) RAW MATERIALS
Particulars Rate Qty Monthly Annually

Qty Amt Qty Amt
aqua 20 35 875 17500 10500 210000
Sodium Laureth Sulfate 25 30 750 18750 9000 225000
Cocamidopropyl Betaine 20 28 700 14000 8400 168000
Acrylates Copolymer 30 38 950 28500 11400 342000
Perfume 40 5 125 5000 1500 60000
Mica 50 4 100 5000 1200 60000
Glycerin 15 8 200 3000 2400 36000
PEG-75 Shea Butter Glycerin’s 25 15 375 9375 4500 112500
Guar Hydroxypropyltrimonium 30 25 625 18750 7500 225000
Chloride
Disodium EDTA 30 6 150 4500 1800 54000
Sodium Chloride 35 12 300 10500 3600 126000
Bis-PEG/PPG-20/20 Dimethicone 0.70 24 600 420 7200 5040
Sodium Hydroxide 0.05 40 1000 50 12000 600
Citric Acid 0.30 16 400 120 4800 1440
Sodium Benzoate 0.25 20 500 125 6000 1500
Benzyl Salicylate 0.80 25 625 500 7500 6000
Butylphenyl Methylpropional 240 24 600 144000 7200 1728000
Citronellol 300 28 700 210000 8400 2520000
Hexyl Cinnamal 220 3 75 16500 900 198000
Limonene 400 0.8 20 8000 240 96000
Linalool 500 0.6 15 7500 180 90000
CI 15985 500 0.6 15 7500 180 90000
CI 47005 500 0.6 15 7500 180 90000
CI 77891 400 0.8 20 8000 240 96000
TOTAL 9735 545090 116820 6541080
52
(2) SALARY & WAGES:-
TOP LEVEL
NO Particulars No Rate monthly Annually
1 Prod. Manager 1 15000 15000 180000
2 Sales Manager 1 10000 10000 120000
TOTAL 2 25000 300000
MIDDLE LEVEL
No Particulars No. rate monthly Annually
1 Packing In charge 1 5000 5000 60000
2 Stock Maintenance officer 1 5000 5000 60000
3 Salesman 1 10000 10000 120000
4 Accountant 1 12000 12000 144000
5 Chemist 1 8000 8000 96000
6 Clerk-cum-typist 1 8000 8000 96000
TOTAL 48000 576000
53
BOTTOM LEVEL
No Particulars No. Rate monthly Annually
1 Foreman 1 3500 3500 42000
2 Prod. Workers 4 12000 48000 576000
3 Packing Workers 2 5000 10000 120000
4 Peon 1 3000 3000 36000
5 Watchman 1 3000 3000 36000
TOTAL 9 67500 810000
LEVEL OF MANAGEMENT
No Particulars Type Rate monthly Annually
1 Top Level Fixed 25000 25000 300000
2 Middle Level Fixed 48000 48000 576000
3 Bottom Level Variable 26500 67500 810000
TOTAL SALARY & WAGES 140500 1686000
54
(2) ADMINISTRATIVE EXPENSES
No Particulars rate Annually
1 Telephone charges 4500 54000
2 Postage-stamp duty 1500 18600
3 Advg. & Mktg. 50000 600000
4 Miscellaneous exp. 1000 12000
5 Insurance 10000 120000
6 Traveling expenses 5000 60000
7 Packing expenses 25000 300000
8 Selling expenses 25000 300000
TOTAL ADM. EXPENSES 122000 1464000
UTILITIES
No Particulars Qty. Rate Monthly Annually
1 Electricity 5000kw 5 25000 300000
TOTAL UTILITIES 25000 300000
55
(3) OTHER EXPENSES
No Particulars Monthly Annually
1 Maintenance & Repairs 29354 352250
2 Legal expenses 4000 48000
TOTAL OTHER EXPENSES 38353 460250
TOTAL WORKING CAPITAL:
No Particulars Annual Amt.
1 Raw Materials 6541080
2 Salary & Wages 1686000
3 Other expenses 400246
4 Utilities 300000
5 Admin. expenses 1464000
TOTAL WORKING CAPITAL 10391330
56
3.TOTAL COST OF PROJECT
No Particulars Amount(Rs)
1 Total Fixed capital 18237500
2 Total Working Capital 10391330
(Raw material for 4 months & other for 2 months)
TOTAL COST OF THE PROJECT 28628830
4. TYPE OF FINANCE BROUGHT
No Particulars % Amount (Rs)
1 Ownership Capital 50% 14314415
2 Borrowed Capital 50% 14314415
TOTAL 100% 28628830
6.DEPRECIATION
No Particulars Amount Rate Amt of Dep.
1 Building 4860000 10% 486000
2 Machinery 2742500 10% 274250
3 Delivery Van 600000 10% 60000
4 Furniture 60000 10% 6000
57
5 laptops 120000 10% 12000
TOTAL DEPRECIATION 838250
7.MAINTENANCE & REPAIRS
No Particulars Amount Rate Value
1 Plant & Machinery 2742500 10% 274250
2 Other Fixed Assets 780000 10% 78000
TOTAL MAINTENANCE & REPAIRS 352250
58
Cost Sheet for Year 2012-2013:
Particulars Per Kg (Rs.) Total Amount
Cost of Materials Consumed:
Direct Materials 6541080 10.90
Direct Wages 576000 0.96
PRIME COST 7117080 11.86
Factory Overheads:
Salary to Factory Manager 180000 0.3
Depreciation:
Plant & Machinery 274250 0.45
Factory Building 486000 0.81
Factory Insurance 120000 0.2
Repair & Maintaince of Plant 274250 0.46
Indirect Wages 810000 1.35
Electricity 300000 0.5
Total 2444500 4.07
FACTORY COST 9561580 15.93
Administrative Expenses:
Telephone & Postage Expenses 54000 0.09
Depreciation
59
Furniture 6000 0.01
computers 12000 0.02
Legal Expenses 48000 0.08
Repair of other assets 78000 0.13
Miscellaneous Expenses 12000 0.02
Stationery & postage 18000 0.03
Total 228000 0.38
COST OF PRODUCTION 9789580 16.31
Less: Closing Stock Of Finished Goods 97895
9691685
Selling & Distribution Overheads
Depreciation on vehicle 60000 0.10
Advertising and marketing 600000 1.01
Travelling expenses 60000 0.10
Packing expenses 300000 0.51
Selling expenses 300000 0.51
Salary of sales manager 120000 0.20
Total 1440000 2.43
TOTAL COST 11131685 18.74
Add:
20% PROFIT 2226337 3.75
SALES 13358022 22.49
Installed & Utilized Capacity: (2012-2013)
60
Installed Capacity in Kgs (p.a.) = 10,00,000 pcs
Production quantity in Kgs (p.a.) = 6,00,000 pcs [60% of Capacity]
Closing stock (p.a.) = 6000 pcs
Cost Sheet for Year 2013-2014
PRIME COST 8303260 11.86
Factory Overheads:
Depreciation:
61
Total 2705208 3.86
Depreciation
Furniture 6000 0.008
Total 263000 0.38
Add: Opening Stock of Goods 97895
Less: closing stock of goods 112714
11256649
Total 1670000 2.39
62
TOTAL COST 12926649 18.49
Add:
20% PROFIT 3231662 4.62
SALES 16158311 23.11
PRIME COST 9489440 11.86
Factory Overheads:
63
Depreciation:
Total 2965916 3.71
Depreciation
Total 333000 0.3725
12738610
64
Total 1900000 2.378
TOTAL COST 14638610 18.31
Add:
20% PROFIT 4391583 5.49
SALES 19030193 23.80
65
PRIME COST 10675620 11.86
Factory Overheads:
Depreciation:
Total 3226624 3.58
Depreciation
66
Total 333000 0.3696
14220418
Total 2230000 2.371
TOTAL COST 16450418 18.29
Add:
20% PROFIT 5757646 6.40
SALES 22208064 24.69
67
PRIME COST 11861800 11.86
Factory Overheads:
Depreciation:
68
Total 3437332 3.55
Depreciation
Total 368000 0.368
15653737
69
Total 2360000 2.361
TOTAL COST 18013737 18.021
Add:
20% PROFIT 7205494 7.208
SALES 25219231 25.22
70
FINAL ACCOUNTS
TRADING ACCOUNT FOR YEAR 2012-2013
PARTICULARS AMOUNT PARTICULARS AMOUNT
Cost of Materials Consumed: Sales 13494000

Direct Materials 6541080
Direct Wages 576000 Closing Stock Of
Finished Goods 134940
Factory Overheads:
Salary to Factory Manager 180000
Depreciation:
Plant & Machinery 274250
Factory Insurance 120000
Repair & Maintaince of Plant 274250
Indirect Wages 810000
Electricity 300000
GROSS PROFIT 4553360
13628940 13628940
71
PROFIT & LOSS ACCOUNT FOR YEAR 2012-2013:
Administrative Expenses: GROSS PROFIT 4553360

Telephone 54000
Postage Expenses 18000
Miscellaneous Expenses 12000
Depreciation:
Office Building 486000
Furniture 6000
Laptops 12000
Delivery van 60000
Legal Expenses 48000
Maintenance of other assets 78000
Selling & Distribution

Overheads:
Transportation expenses 60000
Packing expenses 300000
Salary to sales manager 120000
Selling expenses 300000
Advertising and marketing 600000
NET PROFIT 2399360
4553360 4553360
72
BALANCE SHEET FOR YEAR 2012-2013:
LIABILITIES AMOUNT ASSETS AMOUNT
CAPITAL: 14314415 FIXED ASSESTS:

+ Net Profit 2399360 16713775 Land 9855000
Factory Building 4860000
Creditors 500000 -Depreciation 486000 4374000
Machineries & equ. 2742500
Bank Loan 14314415 -Depreciation 274250 2468250
Delivery van 6,00,000
-Depreciation 60,000 540000
Furniture 60,000
-Depreciation 6000 54000
Laptop 1,20,000
CURRENT ASSETS:
Cash 3102670
Bank 10391330
Debtors 500000
Closing Stock 134940
31528190 31528190
73

Factory Overheads:
Depreciation:
Electricity 350000
16338770 16338770
74
PROFIT & LOSS ACCOUNT FOR YEAR 2013-2014

Telephone 63000
Depreciation:
Furniture 60000
Laptops 6000
Delivery van 12000

Overheads:
NET PROFIT 3031302
5450302 5450302
75
BALANCE SHEET FOR YEAR 2012-2013

+ Net Profit 3052302 19766077 Land 9855000
Delivery van 540000
Furniture 54000
Laptop 108000
CURRENT ASSETS:
Cash 6831452
Bank 10505270
Debtors 600000
34680492 34680492
76

Factory Overheads:
Depreciation:
Electricity 400000
19230400 19230400
77

Telephone 72000
Depreciation:
Furniture 6000
Laptops 12000
Delivery van 60000

Overheads:
NET PROFIT 4505044
7261044 7261044
78

+ Net Profit 4505044 24250121 Land 9855000
Delivery van 480000
Furniture 48000
Laptop 96000
CURRENT ASSETS:
Cash 5061613
Bank 17589773
Debtors 700000
39264536 39264536
79

Factory Overheads:
Depreciation:
Electricity 450000
22443210 22443210
80

Telephone 81000
Depreciation:
Furniture 6000
Laptops 12000
Delivery van 60000

Overheads:
NET PROFIT 6077966
9026966 9026966
81

+ Net Profit 6077966 30328087 Land 9855000
Delivery van 420000
Furniture 48000
Laptop 84000
CURRENT ASSETS:
Cash 1858825
Bank 27676987
Debtors 800000
45442502 45442502
82

Factory Overheads:
Depreciation:
Electricity 450000
25472200 25472200
83

Telephone 90000
Depreciation:
Furniture 6000
Laptops 12000
Delivery van 60000

Overheads:
NET PROFIT 7045068
10659068 10659068
84

+ Net Profit 7045068 37373155 Land 9855000
Delivery van 360000
Furniture 36000
Laptop 72000
CURRENT ASSETS:
Cash 998462
Bank 36390658
Debtors 900000
52587570 52587570
85
Balance sheet
Particulars 1st year 2nd year Particulars 1st year 2nd year
Capital 14314415 16713775 Land 9855000 9855000
P&l 2399360 3052302 Factory building 4374000 3888000
Creditors 500000 600000 Plant Machinery 2468250 2194000
Bank Loan 14314415 14314415 Delivery van 540000 480000
Furniture 54000 48000
laptops 108000 96000
Cash 3102670 6831452
bank 10391330 10505270
Debtors 500000 600000
Closing Stock 134940 161770
total 31528190 34680492 31528190 34659492
Statement of changes in working capital
Particulars 1st year 2nd year Increase Decrease

Current assets
bank 10391330 10505270 113940
Cash 3102670 6831452 3728782
Stock 134940 161770 26830
debtors 500000 600000 100000
Current
liabilities
Creditors 500000 600000 100000
Bank loan 14314415 14314415
Increase in 3869552
w.c.
Total 3969552 3969552
86
Adjusted profit and loss A/c
Particulars Amt Particulars Amt

To depreciation on 486000 By opening b/l 23993602
building
To depreciation on plant 274250
machineries
To depreciation on 60000
delivery van
furniture
laptop
Operating profit 1470192

To closing b/l 3031302
2448110 2448110
Capital A/c
Particulars Amt. Particulars Amt.

By opening b/l 14314415
By cash A/c 2399360
16713775 16713775
Bank loan A/c

By opening A/c 14314415
To closing A/c 14314415
14314415 14314415
87
Land A/c

9855000 9855000
Building A/c

To opening b/l 4374000 By p&l A/c 486000
By closing b/l 3888000
4374000 4374000
Plant & machinery A/c

2468250 2468250
88
Delivery van A/c

540000 540000
Furniture A/c

54000 54000
laptop A/c

120000 120000
89
Fund flow statement
Sources Amt. application Amt.

capital A/c 2399360 Increase in working 3869552
capital
3869552 3869552
Balance sheet
Particulars 2nd year 3rd year Particulars 2nd year 3rd year
Capital 16713775 2425012 Land 9855000 9855000
P&l 3052302 4505044 Factory building 3888000 3402000
Creditors 600000 700000 Plant Machinery 2194000 1919750
Bank Loan 14314415 14314415 Delivery van 480000 420000
Furniture 48000 42000
laptops 96000 84000
Cash 6831452 5061613
bank 10505270 17589773
Debtors 600000 700000
Closing Stock 161770 190400
total 34680492 39264536 34659492 39264536
90
Statement of changes in working capital
Particulars 2nd year 3rd year Increase Decrease

Current assets
bank 10505270 17589713 7084443
Cash 6831452 5061613 1769839
Stock 161770 190400 28630
debtors 600000 700000 100000
Current
liabilities
Creditors 600000 700000 100000
Bank loan 14314415 14314415
Increase in 3869552
w.c.
Total 3969552 3969552
Adjusted profit and loss A/c
Particulars Amt Particulars Amt

To depreciation on 486000 By opening b/l 23993602
building
To depreciation on plant 274250
machineries
delivery van
furniture
laptop

2448110 2448110
91
Capital A/c

By cash A/c 2399360
16713775 16713775
Bank loan A/c

By opening A/c 14314415
To closing A/c 14314415
14314415 14314415
Land A/c

9855000 9855000
Building A/c
92
4374000 4374000
Plant & machinery A/c

2468250 2468250
Delivery van A/c

540000 540000
Furniture A/c

93
54000 54000
laptop A/c

120000 120000
Fund flow statement
Sources Amt. application Amt.

capital A/c 2399360 Increase in working 3869552
capital
3869552 3869552
94

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ACADEMIC YEAR:-

R.P. BHALODIA COLLEGE, RAJKOT

“Planning is necessary in every walk of life. For successful planning guidance is

Many individuals have supported me during the completion of this project.

As students of final year of the B.B.A. course conducted by Saurashtra University, we

Today in the growth rate of Indian economy, contribution of small-scale industry is

Hence, it is suggested by the University to undergo a short training to manage small

I, the undersigned MANALI J.VEKARIA a student of T.Y.B.B.A. hereby declare

5 Human Resource Details

Sr. No. Particulars Page No.

3 History & Development of Product

The development and importance of small-scale industries has increased to a large

Small scale industries play a key role in industrialization of a developing country.

As Roman civilization advanced in around 312 B.C., Galen, a Greek physician

1 Name & Address of the unit : ANGEL SOAP INDUSTRY

Name :- Miss. Manali J. Vekaria

Sr. No. Particulars Page No.

2 Details of the Location of Plant 12

3 Raw materials & Suppliers 14

lowest cost & generate maximum profits.

The production department is a very important part of an organization. It is a place

through processing & thus their form utility is increased.

“Production management is the process of planning organizing diverting and

Shapar is connected to national highway for transportation of raw materials and

2. Sodium Laureth Sulfate:-

5335, Gandhi Mkt, Sadar Bazar,

12/2881 Altret House, Sayedpura Main Road,

M G Road, Surat – 395001

101, Classic Avenue, Opp Sales India,

Ashram Road, Ahmedabad – 380006

20, Kasturi Building, 1st Floor, Opposite H P Building, J Tata Road,

Churchgate, Mumbai – 400020

Ashoka Super Market, S. V. Road,

Goregaon West, Mumbai - 400 104

8. Guar Hydroxypropyltrimonium Chloride

Shop No. 2, No. 1/172 Kamarajar Street,

Thoraipakkam, Chennai - 600 097

10. Sodium Chloride

No. 135, G I D C , Vapi, Pancharatna Char Rasta,

vapi gidc, Vapi – 386195

11. Bis-PEG/PPG-20/20 Dimethicone

Village Nangal Gujran, 33 Feet Road,

Ballabgarh, Faridabad – 121004

12. Sodium Hydroxide

No. 135, Pancharatna Char Rasta, G. I. D. C.,

Vapi - 396 195, Gujarat, India

13. Citric Acid

No. 33, Brabourne Road, Kolkata - 700 001,

West Bengal, India

212, 2nd Flr Toral, Rajkot, Jawahar Road,

Jawahar Road, Rajkot – 360001

15. Benzyl Salicylate

A/2 22/3 Gidc Ind Est, nandesari industrial estate,

16. Butylphenyl Methylpropional

1815,Gidc Phase 3,Vatva, Vatva Gidc,

L/8, Manhattan, Opp Medi Surge Hospital, NR Lions Hall,

Mithakhali, Ahmedabad – 380009

19. Hexyl Cinnamal

Plot No J/7829 Gidc Estate, Ankleshwar,

12 Adarsh Nagar Soc, Nr Municipal Water Tank,

Chani Road, Vadodara – 390002

No. 309 - 311, 3rd Floor, Pragati Tower, Rajender Place,

New Delhi, Delhi - 110 008