Download - Suddh Mineral Water
-
8/3/2019 Suddh Mineral Water
1/16
SuddhPurity in every drop
INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT
IILM GRADUATE SCHOOL OF MANAGEMENT
PGDM GENERAL 2010-2012
SECTION A
Project Report on Mineral Water
Submitted To
Prof. Ritesh Srivastava
Submitted By
Abhishek Tripathi
Amrita Paramanik
Antara Mukherjee
Radhika Bharadwaj
Sabyasachi Panda
Vishal Goyal-Group leader
-
8/3/2019 Suddh Mineral Water
2/16
SuddhPurity in every drop
INTRODUCTION
Mineral wateris water containing minerals or other dissolved substances that alter
its taste or give it therapeutic value, generally obtained from a naturally
occurring mineral spring or source. Dissolved substances in the water may include
various salts and sulphur compounds. It is drinking water packaged
in plastic or glass containers. Water packaged in new Polyethylene terepthalate
bottles and sold retail is the most common. Another method of uses large high
density polyethylene or polycarbonate plastic bottles, often used in water coolers
There are more than 3,000 brands of mineral water commercially available
worldwide. The volume of bottled water grew by 8.1% in 2006 to 115,393.5 millionliters. In 2011, the market is forecast to have a value of $86,421.2 million, an
increase of 41.8% since 2006. In 2011, the market is forecast to have a volume of
174,286.6 million liters, an increase of 51% since 2006.
Corporate control over water and water distribution in India is growing rapidly. The
packaged water business is worth Rs7, 990 and is growing at a huge 49-59%
annually. Around 7,699 bottling plants and 799 brands of packaged water across the
country are battling over the market. According to UNDP estimates, around 7.6
billion people lack access to clean drinking water. Today, most of the people
worldwide are suffering from waterborne disease than any other ailment. Some4,010 children die of such disease every day. Due to rising awareness of the people,
the mineral water industry is getting business.
As globalisation opens up, opportunities for private players, investing in water or
manipulating water scarcity makes increasingly good business sense for corporation.
Over 799 brands are battling over the bottled water market, hard-selling their
products in every way possible- better margins to dealers, aggressive
advertisements, and catchy slogans.
-
8/3/2019 Suddh Mineral Water
3/16
SuddhPurity in every drop
ACKNOWLEDGEMENT
If a man waited for the time
When he could do things best
He would have done nothing
Written words have an unfortunate tendency to reduce genuine gratitude into silted
formality. However, we feel that this is the only way to record ones gratitude.
When all work is done, it is a pleasant job to thank all those who were at every
instant supervising us and ensure the completion of the decoded work.
The successful completion of our project can be attributed to the combined efforts
made by us and the contribution made in one form or other by individuals weacknowledge by here.
We are extremely thankful to our project guide Prof. Ritesh Srivastava for being with
us right from the beginning of our project and guiding us at every step.
-
8/3/2019 Suddh Mineral Water
4/16
SuddhPurity in every drop
Suddhs vision is to achieve global leadership in providing high quality products toour clients in selected horizontal and vertical segments, by combining technology &
exper tise and a commitment to long-term client relationship.
Our mission
We are in the business to serve the customer. He is the most important person. He
is the only one who pays. He deserves the best quality and presentation at a worth
of the price. We must have world class quality, at the lowest production & distribution
cost. This will make us an unbeatable leader, and will have satisfied loyal customers.
It is our commitment to offer every Indian pure & clean drinking water. suddh is putthrough multiple stages of purification, ozonised & finally packed for consumption. .
Rigorous R&D & stringent quality controls has made us a market leader in the
bottled water segment. Strict hygiene conditions are maintained in all plants.
Our values
Integrity, Leadership, Teamwork, Co-operation, Quality, Passion, Openness &
Transparency
Our Objectives
Following are the objectives of our company
To earn a reputation for being an innovative, trend setting brand.
To be positioned as a lifestyle oriented, vibrant and contemporaryProduct
. Build strong relationships with our suppliers to secure a preferential
Supply of the best quality products
Insisting on customer satisfaction in all areas of our organization toAttribute the retention of an ever increasing customer base.
Gain the maximum share in the market
Establish the position of market leader in 3 years
SuddhPurity in every drop
-
8/3/2019 Suddh Mineral Water
5/16
Cost Analysis
W
e have taken up setting up a water purifier plant along with bottling and labelling as
our business plan. So on backdrop of this idea we would introduce the concept of
various types of costs involved in the above mentioned process.
Cost is the value of money that has been used up to produce something and hence
is not available for use anymore. The most important part of the plant is cost
effectiveness. It is going to give us an edge over others in the market. Many
essential features are planned in such a way that the overall cost is reduced as well
as quality of the final product is also not compromised.
The whole cost of production may be segregated into the following elements:
Machines/ Equipment Cost Cost of Raw Material
Packing Cost
Operating Cost
Cost of Manpower
Apart from Machines/ Equipment Cost, all may be seen as floating cost elements.
We are targeting at keeping it to less than 5000K. Our main target is to reduce as
much of Operating Cost (Electrical Load etc.) and Manpower as possible. The Raw
Material and packaging provisions would be of better quality.
If we make a section wise assessment of Equipment cost, Bottle ManufacturingMachinery would hold the highest value followed by Purification and Bottling. The
overall cost is shown in details in later sections.
The Cost of Raw material can be greatly reduced by careful selection of plant
premises. Better the quality of water source, lesser is the need of purification and
hence lesser cost. It is also critical in maintaining the continuity of the plant.
Packing Cost can be regulated well by having a crude proportion of machine and
manual work. This is one section where cost can be most effectively regulated. But
high emphasis is to be given towards the quality, because this will be the only stagesection whose outcome would connect directly with the consumers.
Operation Cost such as electricity charges would play a rather significant role in the
overall product costing.
SuddhPurity in every drop
Cost of Manpower is more relevant once the whole plant set up is complete. It may
be regarded as a floating cost. It all depends upon the requirements and functioning
of the plant.
-
8/3/2019 Suddh Mineral Water
6/16
Apart from these, there are many post release cost such as transportation,
marketing, distribution etc. which will determine the costing of our final product. But,
the main feature of the plant would be the quality centric cost of our product. In order
to reach out to the masses amidst stiff competition, the cost effectiveness would play
the major part. The above mentioned segregation of costing with its technicalities is
explained in detail in later sections.
PROCESS FLOW
The plant (SUDDH) has 5 components:
1] Purification: Water received from the external source is passed through thepurification plant and stored in a stainless steel tank. Thereafter it is fed to the
bottling section - and continues operation achieved.
2] Bottle Manufacturing: Pet performs are blown into bottles and a sufficientnumber of bottles; say 1000 nos., kept ready while the machine continues to producemore during the shift, when the bottling has been started.
3] Rinsing - Filling - Capping: The bottles are fed into the machine whichautomatically rinses, fills and screws the cap on it. Caps are stamped with the dateof manufacture and expiry before being put into the hopper for screwing on to thebottle.
4] Labelling: We are proposing use of heat shrink labels and tamper evident heatshrink sleeve on the neck of each bottle.The label and the neck sleeve are to be manually put on the bottles which will thenpass through the shrink tunnels and onto packing conveyer.Expiry date and batch number could be printed on labels or caps prior to their beingput on the bottles.
5] Heat Shrinking: The bottles are passed through heat shrink tunnel so that thelabel and neck sleeve, shrink and stick to the bottles.6] Final Packing: This could be in cartons - done manually - and no machines have
been provided for it.SuddhPurity in every drop
Equipments involved:
The equipments involved can be broadly categorised into 3
1) Purification section
2) Bottling section
3) Packaging and labelling section
RAW MATERIAL
-
8/3/2019 Suddh Mineral Water
7/16
The water source is of critical importance and the continuity of the plant woulddepend upon it. Apart from water following items are required and can be suppliedby us.1] Perform - for blowing into bottles2] Caps for the bottles
3] Labels4] Neck sleeves5] Cartons for final packing.
COSTS
The various cost elements involved are:1] Raw material2] Packing cost3] Operating cost - Electricity4] Manpower
ELECTRICAL LOAD
The total Electricity load would be about 2.0 KW
MANPOWER
Number of people required to operate various machines is1] Bottling - 1 nos.2] Labelling - 2 nos.
3] Bottle making - 2 nos.4] Printing - 1 no.5] Packing - 2 nos.6] Miscellaneous - 2 nos.7] Administration-4
SuddhPurity in every drop
MACHINES / EQUIPMENT OFFERED
the various machines and equipment being offered by us are explicitly listed here.This does not include miscellaneous items like pipes, electrical etc., which arespecific to the site and each project.
Purification SectionFlow rate: 1000 lit / hourRaw water quality (assumed) : 1000 ppm as TDS
Description Quantity
Alum dozer 3 lit/hr dosage 1
2 nos. pump (1W+1S) (SS) 1Activated Carbon Filter 1
-
8/3/2019 Suddh Mineral Water
8/16
Flow Rate : 2000 lit/hr.MOC : SS 304
Pressure Sand FilterFlow Rate : 2000 lit/hr.MOC : SS 304
1
Softener 1
Reverse Osmosis SystemPermeate Flow: 500 lit/hr.Consist of :5 Micron Filter SS-304 PPH.P. Pump with 3 HP MotorMembrane - 4 nos.Pressure Vessel (SS-316) - 4 nos.Instruments & panel
1
Ozone GeneratorCapacity - 1 gm/hr.Ozone Dissolution Col.MOC : SS-316Flow Rate : 1000 lit/hr.
1
UV DisinfectantFlow Rate : 1000 lit/hr.
1
Storage tank for Pure WaterCapacity: 1000 ltr. SS-316
1
Total Cost Rs 13, 72,000/-
SuddhPurity in every drop
f the quality of the raw water is good it may not be necessary to use some of theabove equipment and consequently the cost can come down. Tanks for Raw waterand alum dosing are to be provided by the client. The output water purification wouldbe in line with WHO specifications - however final results depend on input waterquality.
Bottle Manufacturing Section
To achieve 500 nos. bottles per hour production.Description Quantity
Stretch Blowing Machine: 2
Refrigeration Unit : (Chillers) 2
Air Compressor : 2
Mould sets : 2
Approx. Spares for 1 Year 2
-
8/3/2019 Suddh Mineral Water
9/16
Total Cost Rs 19, 40,000/-
It is possible that the air compressor be bought locally.We are in a position to offer automatic moulding machines also.However that would result in higher investment hence is not recommended at the
initial stages.
Bottling Section:
This section receives the empty bottles, rinses them, fills and caps them.
Description QuantityStainless Steel Conveyor: 1
Rinsing, Filling, Capping: 1
Total cost Rs 13, 32,000/-
SuddhPurity in every drop
LABELLING & PACKING SECTION
Description QuantityShrink Tunnel: 1
Printing Machine (for mfg. Date & batch nos.) 1
Total cost Rs 1, 80,000/-
TOTAL COST OF THE MACHINERY OFFERED
1. Purification section: 13, 72,000/- (expected life 10 year)
2. Bottle Manufacturing section: 19, 40,000/-(expected life 10 year)
3. Bottling section: 13, 32,000/- (expected life 10 year)
4. Labelling & packaging section: 1, 80,000/-(expected life 10 year)
Total -- 48,28,000
Per year calculation of fixed cost:-
Item Price Expected life Per year cost
Purification section 1372000.00 10 year@10% 137200.00
Bottle
manufacturing
1940000.00 10 year@10% 194000.00
-
8/3/2019 Suddh Mineral Water
10/16
section
Bottling section 13,32,000.00 10 year@10% 133200.00
Labelling &
packaging
180000.00 10 year@10% 18000.00
COST SHEET
Cost sheet is a statement, which shows various components of
total cost of a product. It classifies and analyses the
components of cost of a product. Previous periods data is
given in the cost sheet for comparative study. It is a statement
which shows per unit cost in addition to Total Cost. Selling price
is ascertained with the help of cost sheet. The details of total
cost presented in the form of a statement is termed as Cost
sheet
Suddh
Purity in every drop Shudh enterpriseCost sheet for the period 2010
Quantity manufactured:- 500000
Quantity Sold:- 5000000
Total
Cost
Cost
per
unit
-
8/3/2019 Suddh Mineral Water
11/16
1) Cost of raw Materials Consumed2) Machinery purchased for
a)purification sectionb)bottling sectionC) manufacturing bottlesc)packaging section
3)Prime cost (1+2)
4) Factory Over Heads( 10000/month)*12
5)Electricity consumed (35000/month)*12
6) Factory rent ( 50000/month)*12
7) salaries to 10 workers ( Rs 150 /day )*128)lab expenses
9) Gross factory cost (3+4+5+6+7+8)
Office and Administration Over Heads
10) Office salaries staff
11) Other administrator charges ( 2000/month)* 12
12)office cost
13) Selling and Distribution Over Heads.
14)Advertisement expenses15)expense of delivery vans
16)packaging expenses17)commission of sales agents ( .20/bottle)
18)Total Cost
Profit
Sales
1040000.0
0
137200.00194000.00133200.0018000.00
1522400.00
120000.00
420000.00
600000.00
468000.00
3130400.00
312000.00
24000.00
3466400.00
50000.0050000.0080000.00500000.0
0
3696400.001303600.00
5000000.00
2.08
.275
.388
.266
.036
3.044
.24
.840
1.2
.
.936
6.2608
.624
.048
6.9328
.10
.10
.16
1.00
7.3928
2.6072
10.00
-
8/3/2019 Suddh Mineral Water
12/16
SuddhPurity in every drop
Cost sheet analysis
The maximum amount allocated to us is between fifty lakh to one crore rupees. So
we will try to cover up all the costs and expenses within this allocated amount.
Profit for 5 lakhs bottle is Rs.653600. According to us this initially this is sufficient
profit. As we move further for more production our cost will decrease and we can
earn more profit.
Our total cost is 4346400.00 for 500000 bottles.
We will sell this bottle for Rs 10.
Competitors survey
BISLERI AQUAFINA KINLEY
COST Rs 4-5/per bottle Rs.3-4/per bottle Rs2.85-4.25/ per bottle
PROFIT 33.3% 25% to 30% 17% to 20%
DISTRIBUTION
NETWORK
Production TO
Plant warehouse
TO Depot
warehouse TO
Distribution
warehouse TO
Retail Stock TO
Consumer
PRIMARY
DISTRIBUTION
Producer TO
distributor
SECONDARY
DISTRIBUTION
Distributor TO
retailer TO
consumer
Distribution network
Direct distribution
Indirect
distribution
Merchandising
SELLING
QUANTITY20 million bottles
per month
Annually
consumption 1.7
billion liter
stands at 16.8 million
bottles a month
-
8/3/2019 Suddh Mineral Water
13/16
SELLING PRICE 1litre-Rs.10 500ML-Rs.12-14 1litre-Rs.12
SuddhPurity in every drop
SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluatethe Strengths, Weaknesses, Opportunities, and Threats involved in a project or ina business venture. It involves specifying the objective of the business venture orproject and identifying the internal and external factors that are favourable andunfavourable to achieve that objective
Strengths:
We are providing high
quality Mineral Water
The price per qualityis very attractive
We have effective
advertising plan
Weakness:
New brand
in the
market
Opportunities:
Low & a bit high
income group
Threats:
Strong
distribution
channel of
competitors
Strong
Positioning
of
competitors
http://en.wikipedia.org/wiki/Strategic_planninghttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Strategic_planning -
8/3/2019 Suddh Mineral Water
14/16
SuddhPurity in every drop
Conclusion
We have successfully developed the plan. If we look at the
market it is full of competition. A large portion of the populationis attracted by those products which have already positioned intheir minds. In this market scenario we launched the MineralWater that is Suddh. The main objective is to create theawareness of our product and gain some share in the market.
The budget was up to one crore rupees. We have allocated thisbudget into different mediums. We have conducted a surveyand have positive feed back about our product. When we gavethe free samples,the marketing campaign was successful. We
also took a stock of feedback from our retailers about ourproduct. They gave us positive response when our sales started. When they started declining they gave all the review of thecustomer this was very helpful for us to remove our weaknessof our product and major part of evaluation for advertising.
-
8/3/2019 Suddh Mineral Water
15/16
-
8/3/2019 Suddh Mineral Water
16/16