1

A
PRODUCT PROJECT REPORT ON

HOCKEY STICKS

PREPARED BY BHAVESH N. MAKWANA CLASS T.Y. B.B.A. ACADEMIC YEAR 2011-12 ROLL NO: COLLEGE GEETANJALI COLLEGE OF COMPUTER SCIENCE AND COMMERCE GUIDED BY PROF. HEENAL MORJARIYA SUBMITTED TO SAURASHTRA UNIVERSITY

PREFACE
Small Scale Industry is the pillar of industrialized Indian economy. In India, the S.S.I. provides more than five times employment than the Large Scale Industry. Moreover, in a short time period, S.S.I. I have made a notable contribution in the adoption of modern techniques. It is very good opportunity for me to submit this report for S.S.I. under the prescribed syllabus of Saurashtra University, Rajkot. The object of this report is to develop entrepreneur skills and awareness. For this purpose the product of leather balls for cricket and hockey. This project provided me with the knowledge of various aspects of launching a new product in this era. I have tried my level best to make this report most precise, relevant and in systematic manner.

ACKNOWLEDGEMENT
Time has no passage to mark its existence but we have language to express. No doubt that the word Thanks is very small to express my hearty feelings.

I sincerely express my gratitude and warm regards to our PROF. HEENAL MORJARIYA for her valuable suggestion and guidance during my work. Last but not least, I am indeed thankful to my parents for their moral support, encouragement and involvement in my mission and other friends for their help and co-operation.

Bhavesh Makwana

INDEX
SR. NO

PARTICULAR INTRODUCTION PROJECT AT A GLANCE PARTNERS BACKGROUND PRODUCT DETAILS MARKET ANALYSIS PRODUCTION PROCESS QUALITY CONTROL FINANCIAL DETAILS FINANCIAL PROVISION COST OF PRODUCTION PROJECT FOR NEXT FIVE YEARS PROFITABILITY ANALYSIS CONCLUSION

PAGE NO. 5 6 7 9 11 14 17 18 21 23 29 31 34

1 2 3 4 5 6 7 8 9 10 11 12 13

INTRODUCTION
S.S.I. is economic strength of country. This fact is realised by India after independence. But in recent years, the S.S.I. of India has undergone rapid changes and had flourished in India in early times. S.S.I. provides Raw Material to large scale units and to be partner of success. The most important role of S.S.I. in Indian economy is as greater of employment and equal distribution of income. The purpose of our unit is to create and hockey sticks. Hockey is the game which is very popular and played not only in our country but all over the world. After partition of the country in 1947, a large number of workers migrated to India. They subsequently settled down in Meerut and Jalandhar, where they started manufacturing hockey sticks.

PROJECT AT A GLANCE
Products Name Address Hockey sticks G.I.D.C. Metoda, Rajkot. Form of the unit S.S.I. registration no. Location of the unit Partnership Applied for G.I.D.C. Metoda, Rajkot. Partners name Bhavesh makwana Rathod ketan Subsidy registration no. Applied for

PARTNERS BACKGROUND PARTNER-1

Name Age Address Qualification Bhavesh makwana 20 Mochi bazaar, Rajkot. B.B.A marketing manager 50% marketing manager Fresh

Specialized subject Financial contributionResponsibility Experience -

PARTNER-2
Name Age Address Qualification Rathod ketan 25 Mochi bazaar, Rajkot. M.B.A with finance finance management 50% finance manager,HRM 2 years

Specialized subject Financial contributionResponsibility Experience -

PRODUCT DETAIL
 INTRODUCTION:
Hockey sticks is a stick of particular shape made out of mulberry wood and cane, hockey is one of the major games of the world, As per the registration procedure of players in foreign countries, there are more than one lakh players each in Holland and west Germany and 50000 in new Zealand. Similarly east Europeans, South American countries have also started popularizing hockey. In India now more stress is laid on the encouragement of hockey.

 FEATURE:
Goulder than requested detailed cost comparisons of outsourcing versus domestic automation is performed for all sticks both everyday and seasonal. These analysis were to be cut for each of the three main product categories. 1. 1st quality hockey sticks 2. 2nd quality hockey sticks 3. 3rd quality hockey sticks

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 USE:
Hockey stick is a stick of particular shape made out of mulberry wood and cane, hockey is one of the major games of the world and it is also our national game. Every country has started popularizing hockey. In India how more stress is being laid on the encouragement of hockey.

 APPLICATION: Until a Montreal Company began manufacturing hockey sticks in the late 1880s, most players made their own. A player would cut down the wood into the desired shape. Then the shaft grew longer so that players lost the hunched over stance of early games. Then they began to experiment with lamination as a way to use less and varied types of wood today, most high quality wood sticks are laminated.

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MARKET ANALYSIS
 MARKET STATUS:
Status is refers to with the image of product and its design and also refers with the good attraction of it. The value of sticks increase by qualitative material used in it. If the status is good the product can survive more. The market status of progress industry is so good in the market which may help to them in increase the sale and survive business.

 MARKET POTENTIAL: Hockey sticks units can be started by getting mulberry blades. The damage of hockey stick is increasing day by day all over the world and also in domestic market. Players are generally purchasing at least one hockey stick in two years. And their export is expected to increase substantially in the year to come. Thus, the item of fers good scope in domestic as well as export market.

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 COMPETITION:
There are competitors who produce same product as us and no business in this economy who has no competitor. So in my business and in my product in hockey sticks. There are many competitors in market. - Jay sticks. - Om sports.

 PRODUCT ASSORTMENT: The origin of the game of hockey is a hazy and contentious issue. Various forms of field hockey were played in Scotland, Ireland and France as early as the sixteenth century. Until a Montreal company began manufacturing hockey sticks in the late 1880s, most players made their own. The greatest variety comes in the materials used to make the shaft of the stick. The three primary materials are wood, aluminum and composite. Goulder than requested that detailed cost composite companies of outsourcing versus domestic automation be performed for all hockey sticks. Both everyday and seasonal. These analysis were to be cut for each of the three main product categories. 1. 1st quality hockey sticks 2. 2nd quality hockey sticks 3. 3rd quality hockey sticks

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These three types of hockey sticks requires progressively greater labour to produce. The first one having the highest labour content.

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PRODUCTION PROCESS
 RAW MATERIAL:
The greatest variety comes in the materials used to make the shaft to the stick. The three primary materials are wood, aluminum and composite. Wood, long the traditional material is still widely used today. Many companies still make solid wood, twopiece sticks for their junior and budget lines. Hockey sticks shafts can either be made out of wood, aluminum, or composite material, if aluminum is used, it must be heat treated to harden the aluminum. Aluminum is used by itself to make a hollow shaft. Properly formed, it has substantial rigidity and extremely low weight.

 PROCESS: - Wood 1. The lumber used to make wood shafts is first dried and cured in building sized kilns to prevent the wood from warping after manufacture. Logs are then fed through a multi-bladed saw that cuts the wood into thin sheets. The sheets of wood and layers of fiber glass are coated with adhesive and pressed together in a heated hydraulic mold. The finished laminate is then cut into the rough shape of a stick and shipped to the stick maker. 2. The stick maker uses a saw with played teeth to cut the rough wood into the desired shape. Each pass on the saw cuts two corners of the shaft, so after two passes the shaft has four beveled corners and has reached its final shape.

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3. A block of ash is glued onto the end of the stick. This will form the joint between the shaft and the blade. A groove is cut into the center of the block to accept a tongue shaped into one end of the blade. The tongue and groove are glued. Fit together, and placed in a heated hydraulic press to cure for about half an hour. 4. The dried assembly is then shaped and smoothed on a large drum sander. The fiber glass is dipped in resin and allowed to dry. Once dry, the stick is again sanded to remove any rough edges. 5. Graphics are silk-screened on and parts of the stick may be painted, and the stick is finished with a clear glors varnish. Aluminum 6. Aluminum shafts begin as flat sheets which are folded and compressed into a long block. The advantage of this is that the walls of the final shaft will be made up of numerous extremely thin and making a much stronger material than one layer. 7. The long block is cut into billets rough the size of the intended stick. The billets are then fed into a machine that heats it and pushes it under enormous pressure through a hole the shape of a hollow hockey stick shaft in a process called extraction. The extruded metal is cut off in lengths about the measurement of a stick. 8. These pieces are then drawn through a series of smaller and smaller dies to compress the metal and bring it to its final size. 9. Finally, the metal is heated to approximately 600f (315.5 c).this final step is called heat treating and is designed to strengthen.

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10. Finishing an aluminum shaft is simpler finishing a wood one. Aluminum can be painted. The metal itself may also be colored or anodized. To fit the blade, one end of the shaft is left open a peg on the heel end of the blade is coated with hot glue. And the two pieces are clamped and left to dry. A rubber plug is inserted in the other end of the shaft for grip and safety. - Composite 11. Composite materials begin as a synthetic cloth just as fiberglass does. But most are far lighter, stiffer, and sometimes more durable than fiberglass. 12. Several layers of the composite material are wrapped around a mold in the shape of the finished. Shaft and then heated and pressed one of three methods. I. Traditional hydraulic press. II. Vacuum pressure to force the composite against the mold and take its shape. III. An inflatable blades bladder as the inside mold. - Blades 13. Blades are placed on a pattern or jig to be cut into their final shape. They are stream heated or boiled then clamped in a hydraulic press to curve them.

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 QUALITY CONTROL:
Every piece of wood used in a hockey stick is inspected. Before it enters assembly process. Lumber with irregular grain, knots, or mineral deposits is rejected. The NHL sets guidelines for every dimension of a stick. Strangely, those dimensions are only enforced during a game by protest of the opposing team. The stick meets specifications. The protesting team receives a delay of game penalty.

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FINANCIAL DETAILS OF THE PROJECT

 LAND: The following are provides information related to the area of land covered by this unit.

 LOCATION OF LAND: G.I.D.C Metoda, Rajkot.

 DETAILS OF LAND: SR. NO. 1. PARTICULAR OPEN LAND SQ. RATE MTRS. 150 10,000 VALUE 15,00,000

 BUILDING:

SR. DETAILS NO. 1 2 3 FACTORY GODOWN OFFICE

TYPE OF AREA RATE CONST. CIVIL CIVIL CIVIL 200 100 50 5000 4000 1000

TOTAL COST 10,00,000 4,00,000 50,000

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 MACHINERY: SR . NO . 1 2 3 NAME OF NAME OF MACHINER SOPPLIER Y CUTTING MATCHINE SEWING MACHINE BENDING MACHINE ELEC. UNI REQUIRED TS AMT.

M/S 7 H.P N.S.INDUSTRI ES BASTI 10 H.P SHEIKH ROAD, 9 H.P JALANDHAR.

2 5 3

12,000 23,000 15,000

 FIXED CAPITAL AND FIXED COST OF THE PROJECT:

SR. NO. 1 2 3 4 5

DETAILS LAND BUILDING MACHINERY CONTENGENCY EXP. PRELIMINERY EXP.

AMOUNT 15,00,000 14,50,000 12,00,000 35,000 45,000

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 WORKING CAPITAL REQUIREMENTS: For 1 month For 3 months : 60,000 : 60,000*3 = 1, 80,000

 TOTAL COST OF PRODUCT:

SR.NO. 1 2 3

DETAILS Fixed cost Variable cost Working capital TOTAL

AMOUNT 5,00,000 35,00,000 7,20,000 47,20,000

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FINANCIAL PROVISION

 FINANCIAL PROVISION: SR. NO. 1 2 3 4 5 DETAILS GSFC BANK OWN SUBSI LOAN LOAN CAPIT DY AL Land 1500000 80000 30000 400000 Applie d for Building 1450000 70000 40000 350000 subsid y machinery 1200000 75000 450000 35000 45000 35000 45000 AMT.

Contingenc y exp. Preliminary exp.

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 DETAILS OF SOURCES OF FINANCE: Finance is like the blood of the company. The major factor to be considered setting up of any industry in finance. Especially for SSI units financial constraint is the biggest hindrance in their path of progress. Availability of finance is a major decision and task to be undertaken by any small scale entrepreneur. There are many alternatives available to an entrepreneur for the source of finance like borrowing loans, borrowing from friends, partnership, funds etc. he should choose that alternative which according to him would prove that most profitable. The details of the source of finance related to this unit are as under.

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COST OF PRODUCTION
 DETAILS OF SALES: SR.NO DETAILS 1 2 3 1ST QUALITY 2ND QUALITY 3RD QUALITY RATE 260 245 225 QUANTITY AMT. 6000 6000 6000 1560000 1470000 1350000

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 RAW MATERIAL INCLUDING PACKAGING:

The details of raw material and their rate per months are as follow. sr. no. 1 2 3 4 5 6 7 8 9 Description Mulberry blades Cane handles Fevicol Colour cotton tape Binding cloth Duco paints Transfer and other Corrugated or wooden boxes Power(20 H.P) Quantity 100 40-50 pcs 3-4 kg. 3-4bundle 5-6 mtr. 3-4 liter 200-400 pcs 1-3 20 H.P Amount 20000 500 300 100 100 125 150 80 2000

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 SALARY & WAGES: The details relating to the salary and wages paid monthly and yearly are as under. Sr. no. Details 1 2 3 Skilled Semi-skilled Helper No. of staff 4 2 2 Monthly 2200 2100 2000 yearly 26400 25200 24000

 RENT, TAXES AND INSURANCE: The amount of taxes and insurance paid are as follows. Taxes and insurance = Rs. 2, 05,000 Thus, taxes on raw material are taken under the head of variable cost, while insurance is taken under the fixed cost.

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 REPAIRING AND MAINTENANCE: The details relating to repairs and maintenance are as follows: Sr. no. 1 particular Repairing and maintenance Yearly 95000

 INTEREST:

The details of interest payable on borrowing are tabulated as under.

Sr. no. 1 2

Details G.S.F.C Bank loan

Int. amt. 10% 12%

Loan amt. 1500000 1450000

Total int. 150000 174000

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 DEPRECIATION: SR. NO. 1 2 3 DETAILS Machinery Tools & equipments Office equipments AMOUNT 1200000 300000 200000 RATE 10% 25% 20% TOTAL 120000 75000 4000

 ADMINISTRATIVE EXPENSES: SR. NO. 1 2 3 4 DETAILS Accounts Printing & stationery Postage & telegrams others MONTHLY 7000 3000 1800 1000 YEARLY 84000 36000 21600 12000

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 SALES AND DISTRIBUTION EXPENSES: NO. 1 2 3 4 DETAILS COMMISION ADVERTISING SALESMEN COMPENSATION AMOUNT 60000 90000 35000 40000

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PROJECT FOR NEXT FIVE YEARS

Company decided the different project for next five years. So maintain the highest possible level of the production that is as under. y To provide good qualitative product to the consumer. y To increase production capacity possible capacity of the firm. The project for next five years is as follows:

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CAPACITY Sales Less: variable cost Raw material Salary & wages Electricity

1 YEAR 60% 50,00,000

2 YEAR 70% 55,00,000

3 YEAR 80% 60,50,000

4 YEAR 90% 66,55,000

5 YEAR 100% 73,20,500

30,00,000 2,00,000 3,00,000

33,00,000 2,20,000 3,30,000

36,30,000 2,42,000 3,63,000

39,93,000 2,66,200 3,99,300

43,92,300 2,92,820 4,39,230

Contributio 15,00,000 n

16,50,000

18,15,000

19,96,500

21,96,150

Less: Fixed cost Interest Depreciatio n Adm. Exp. Sales & dist.

1,50,000 70,000 1,00,000 1,80,000

1,65,000 77,000 1,10,000 1,98,000

1,81,500 84,700 1,21,000 2,17,800

1,99,650 93,170 1,33,100 2,39,580

2,19,615 1,02,487 1,46,410 2,63,538

Net profit

10,00,000

11,00,000

12,10,000

13,31,000

14,64,100

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 profitability analysis:

1) Net profit ratio: Net Profit =

Profit after interest and tax v 100 Sales

1000000 v 100 5000000

=
=

20%

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2) return on investment:

ROI

Profit v 100 Total Invest

1000000 v 100 4000000

25%

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3) break even point:

BEP

Fixed Cost v100 Fixed cost  Profit

500000 v 100 1500000

33.33%

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CONCLUSION
Thus, hereby, I myself Bhavesh Makwana concluding my product project report related to the manufacturing of hockey sticks. The hockey stick product selected by me for the manufacturing is too demanded for the further production of new varieties of sticks as there is increase in the game hockey in India. We hope that the target we have set in the above estimation will be able to achieve very soon and will try to expand our business up to the highest level.