project report of pfr

8/12/2019 Project Report of Pfr

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PROJECT REPORT

ON

STUDY OF DIFFERENT HR FUNCTION

IN

TATA STEEL, WEST BOKARO DIVISION

PRESENTED BY:-

SUMAN SOURAV


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B.B.A

BIRLA INSTITUTE OF TECHNOLOGY

MESRA-835215, RANCHI, LALPUR CAMPUS

2012

DECLRATION CERTIFICATE

I, Tarun Kumar Rez, student of Bachelor Of Business Administration 5th

semester from BIT MESHRA EXT.CENTER ALLAHABAD declare that this

project report titled

Costing System completed by me in Tata steel WEST BOKARO

DIVISON under the guidance of Mr. (Sr. manager HR/IR) and Mr. M.N

Rao(Sr. Manger Tanning)

Date: 01-05-2012 SIGNATURE

Suman Sourav

Birla Institute of Technology,

Lalpur campus.


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CERTIFICATE OF APPROVAL

The forgoing project entitled Setting of honey processing enterprise

is hereby approved as a creditable study of research topic and has been

presented in satisfactory manner to warrant its acceptance as prerequisite

to the degree for which it has been submitted.

It is understood that by this approval, the undersigned do not necessarily

endorse any conclusion drawn or opinion expressed therein, but approve

the project for the purpose for which it is submitted.

.

Date: 10-12-2010 (EXTERNAL SIGNATURE)


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ACKNOWLEDGEMENT

I have great pleasure in acknowledging all persons with whose help and

co-operation I have been able to complete my summer training project in

west bokaro division, Tata steel.

I am very grateful to the management of Tata steel, west bokaro division

who granted me this opportunity to pursue my training in Tata steel.

I would like to express my sincere thank Mr M.N Rao(sr.manger

tranning) and Mr. Kumar Sunil(Sr. manager costing) for giving theirvaluable time, energy, guidance and sharing their enhanced knowledge,

without which this project havent been accomplished.

Mr. Kumar Sunil

(Sr, Manager Cost)


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PROMOTERS

Our firm is a partnership firm and is operated and promoted by:

Name: suman soura

Age: 20 yrs.

Qualification: BBA from Birla Institute of Technology.

Experience: No Experience.

Namesuman sourav

Age: 20 yrs.

Qualification: BBA from Birla Institute of Technology.

Experience: No Experience.


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CONTENTS

Introduction

Reason for selection of the project.

Introduction of honey.

Project description

Objective of the project.

Swot analysis

Market research analysis

Product policy and design

Pricing policy

Investment requirement

Market potential

Implementation schedule

Product strategy

Marketing Plan

Target market

Manufacturing Process

Distribution of Honey


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Competitors

Best way of consumption honey

Projected trading& profit and loss and Balance sheet of 2

years.

Ratio Analysis

Limitation

Conclusion

Bibliography

HONEY PROCESSING

INTRODUCTION

We are going to set up a Honey processing enterprise in

Manauri area which is located in Allahabad city.

The other information related to the firm are as follows:-Name of firm: Honey processing enterprise

Name of our product: Fresh Honey


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INTRODUCTION OF HONEY

Honey is a consumable product and it is also used extensively in making

Ayurvedic medicines. Natural honey is always in demand round the

year. Natural honey is obtained from honey bees and hence bee-keeping

is a profitable activity. But it has to be undertaken at a place where there

is a very limited movement of people or vehicles. This activity has

potential to provide regular income especially in rural areas. Therefore,

the government is also encouraging this activity and Khadi and Village

Industries Board extends many incentives as well as marketing support.

The project of honey production, processing, packaging and

marketing envisages the farming of honeybees, extraction of honey, its


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processing in the factory, followed by packaging and then distribution or

supply to the consumer market. The proposed business will start with

6000 beehives initially, however, within a few months it will reach

around 15000 hives which will be settled in Manauri in the farmingareas where wild plantation or crop farming is common. Once the hive is

ready and filled with honey, it will be extracted using prevalent

extraction techniques and will be stored in large plastic drums.

Processing and packaging will be performed in the production facility

while Quality Testing will be outsourced to third party. In the end,

packaged honey of different grades will be supplied to the local market

through distributors.

PROJECT DESCRIPTION

The project consists in developing a honey processing center in Manauri.

The center will have 6000 beehives and will focus on quality in all the production

stages from processing, purification, packaging, labeling, standardization, storage

to proper distribution to market outlets

The processing consists in collecting honey from the extractor and thenstraining to remove any leftover beeswax.

The purification consists in removing any impurities such as wax particles,other debris and air bubbles incorporated during extraction.

The packaging will present the product in an attractive waythe preferredpackage for honey is the glass jarby using high quality labels that showthe brand, the nutrition information, expiry date, manufactured date, price

and other important consumer information.

The quality control will verify the honey composition to ensure consistency.


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OBJECTIVES OF THE PROJECT

To produce a high quality honey and building loyalclient.

Being a trustworthy source to buy pure honey.

To provide the customers with new types of honey.

To provide the customer with right and competitiveprice.

Distributing well packaged and labeled honey.

Focuses on women employment.


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Low quality of raw product.

Lack of market transparency.

OPPORTUNITIES:-

Introduction of quality standards and control will improve the

domestic and export marketing

Export of high quality honey will result in higher export prices.

Ecological honey production as good opportunity alreadyrecognized.

Market transparency (establishing collection and wholesale

markets) will improve supply of raw material and quality

THREATS:-

Opportunistic behavior of minor dealers and powerful agents obstacle for free market conditions.

The present market structure (producers)obstacle for introducingquality control.

Poor market power of producers in maintaining the quality of thehoney.


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Insufficient financial resources for technological improvements.

MARKET RESEARCH ANALYSIS

MARKET POTENTIAL

The first task we faced in demand analysis was to identify our potential in long-run

marketing opportunities.We have done our marketing research through conducting

telephonic interview, face-to-face meeting . By analyze the collected data,we have

gained a better picture of the size of our market opportunities.

The Market Opportunity Analysis will help you determine the information services

you should be offering, based on the needs of the organization and the libraryscapabilities. In market opportunity, we try to analyse buyer wants and his behavior

and accessing market size.

Here we have a list of information required, based upon which we have conducted

our market opportunity analysis:-

To know the different market segment.

To know the overall market demand for the honey.

To know information regarding our competitors, marketing strategies,distribution channel, pricing method and quality of material.

To know the infrastructure requirement for setting up of the enterprise.

To know the extent of profitability of the project.

To know the risk involved in execution of the project.

To make certain product is identifiable and distinct from your

competitors.

Through market analyzing all the information we find the current demand for

honey are not being met by the manufacturer and conditions for setting our plant is


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favorable, so we have enough market opportunity to position our self in Honey

processing enterprise.

MARKET SIZE

Our market research and analysis highlights the practicality of the project or it

highlights the feasibility of our project work. We have done our market research in

order to access or evaluate different factors like economical, financial,technological, and social desirability factors involved in setting up of our factory.

Our market research is based on face-to-face meeting with the suppliers, Marketing

Intermediaries, individual customers and competitors.

On the basis of information given by these persons we have segmented our

potential demand market in to following zones: -

Chitrakoot zone.

Pratapgarh zone.

Kunda zone.

Fathahapur zone.

Jonpur zone.

PRODUCT POLICY AND DESIGN

Product policy must develop a market plan for achieving its goals. Our product

policy consists of different decisions about the products, which are following:-


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What kind and quality of product to be produced?

How to position our product?

Where to position our products etc?

We can take decisions regarding this question by analyzing relevant background

data about projected sales, profit, the market, competition and distribution channel

etc.

Our product policy consists of action programs, which answer the following

conditions:-

What will be done?

When will it be done?

Who will do it?

How much will it cost?

Our action program allows us to associate projected profit and loss statement with

our product policy.

PRICING POLICY

In pricing policy we have emphasized our self in establishing a price list offering

schedule of discount to our target customers. Price charge for our product and

services will greatly effect the sales volume, profit level and other among things,

your business image.

We have positioned ourselves in Good value-strategies in which we are

providing good quality product at low price. Since our enterprise or plants

objective is to maximize market share and incured a reasonable profit so we are

concentrating in market penetration pricing. Here we will set our product price

relatively low to win a large market share.

The following objectives are to be considered while fixing the prices of the

product:

The primary objective of the firm is to maximize its profits.


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Price stabilization over a period of time is another objective.

The pricing policy is to face the competitive situations in the market.

Maintenance of market share.

Deeper penetration of the market.

Target profit on the entire product line irrespective of profit level of individual

products.

OUR PRODUCT COST IS Rs.180 per KG.

Space program:

Land has to be in the secluded and forest or hilly area. A plot of around 150-200

sq.mtrs. is sufficient. To limit the capital cost, the promoter can start this activityon own land or it can be obtained on long term lease. There is no need to have a

sturdy building but a shed of around 20-25 sq.mtrs. with asbestos sheet roofing issufficient. It may cost Rs.60000/-.

Investment requirements:The initial investment includes the equipments needed to start the operations, the

bees.The table shows the requirement :

Initial investmentItem Quantity price Total price

EquipmentProtective Clothes 10 400 4,000

Gloves

Total equipments10 250 2,500


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Helmet 5 300 1,500Smoker 5 200 1,000

Hive Tool 20 100 2,000Bee Brush 5 90 450Scratcher

10

300

3,000

Uncapping tray 10 1,000 10,000

Hive 300 300 90,000Pliable steel stand for hive 300 100 30,000

Feeder 1000kg 20 20,000Honey extractor (12 frames)

automatic2 10,000 20,000

Honey tanks (200kg) incl. filter 5 10,000 50,000Support for tanks 5 2,000 10,000

Staffing structure:-

The honey collection center will have a general manager and an assistant on a full

time basis.Moreover, the center will employ 15 seasonal workers.

Staff Structure Staff Structure N ofstaff MonthlySalary Annualsalary

General Manager 1 2,000 24,000Assistant 1 1,000 12,000Total salary 36,000

Staff Structure N of staff

In addition, 15 workers at a daily fee of Rs. 100 , will work every season to

collect, label and store the honey.

Therefore, TOTAL WAGES:-54000

MARKET POTENTIAL

Honey has substantial medicinal properties and is used in India since

long. Procurement of natural or pure honey is becoming difficult due to


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Honey is made up of:

Natural sugars 80% (mainly laevulose, dextrose and glucose)

Moisture 17%Mineral traces 3%. (Dark honeys are the richest in minerals)

Color in liquid honey varies from clear and colorless (like water) to dark amber or

black. The most important aspect of honey color lies in its value for marketing and

determination of its end use. Darker honeys are more often for industrial use,

while lighter honeys aremarketed for direct consumption.

90% of the honey produced in the world is eaten directly as table honey. The

remaining 10% is used as in ingredient in a diverse range of products, such as food(baby foods, breakfast cereals, meat packaging), cosmetics (soaps, shampoo,

lotions), alcohol (some liquors and wines).and medicine.

The preferred package for honey is the glass jars because it requires

fewer chemicals for storage and it can highly preserve the quality and

also is recyclable. Besides, honey can be seen through the glass jar, asthe visual impact is very essential to the consumer.

Marketing Plan


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The honey collection center will allocate a yearly budget to marketing

and advertising activities.

The center will be focusing on the following promotional activities tohelp widen its network and enhance brand image:

Ensuring high quality products are constantly delivered to theconsumers in order to build loyal client.

Organizing tasting events at major supermarkets.

Increasing consumerss awareness towards the benefits of honey.

Participating in trade fairs.

Planning promotion campaigns.

Developing direct contacts with all the beekeepers of theAllahabad as well as neighboring Allahabad in order to purchase

additional quantities of honey to ensure constant supply and to beable to market the centers facilities in order to rent them.

Getting in touch with the largest supermarkets in the Allahabad .

TARGET MARKET


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Ayurvedic Industry

Food Processing Industry

Exports

Cosmetic Industry

The Manufacturing Process

Bee-keeping activity should ideally located where there are

minimum movements of human-beings with very little noise.

Forest area is, therefore, suited with many flowering plantsnaturally grown. Movable wooden frames with boxes are placed

at such locations and these boxes are spread with honey spice to

attract more and more honey-bees. These bees leave fresh honey

sucked from flowers in the cells of honey-comb provided in the

boxes to eat bee feed. When these cells are full of honey, they

are hermetically sealed by capping with wax and then honey is

extracted from these cells. Freshly extracted honey is warm andeasy to bottle. It is essential to undertake proper training of

extraction and bottling.


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Full honeycombs removed from hive

To remove the honeycombs, the beekeeper dons a veiled

helmet and protective gloves. There are several methods for

removing the combs. The beekeeper may simply sweep the

bees off the combs and guide them back into the hive.

Alternately, the beekeeper injects a puff of smoke into the

hive. The bees, sensing the presence of fire, gorge

themselves on honey in an attempt to take as much as they

can with them before fleeing. A third method employs a

separator board to close the honey chamber off from the

brood chamber. When the bees in the honey chamber

discover that they have been separated from their queen,

they move through a hatch that allows them to enter the

brood chamber, but not reenter the honey chamber. The

separator board is inserted approximately two to three

hours before the honeycomb is to be removed.


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The majority of the cells in the comb should be capped.

The beekeeper tests the comb by shaking it. If honey spurts

out, the comb is reinserted into the honey chamber for

several more days. Approximately one-third of the honey is

left in the hive to feed the colony.

Uncapping the honeycombs


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Honeycombs that are at least two-thirds capped are placed

into a transport box and taken to a room that is completely

free of bees. Using a long-handled uncapping fork, the

beekeeper scrapes the caps from both sides of the

honeycomb onto a capping tray.

Extracting the honey from the

combs

The honeycombs are inserted into an extractor, a large

drum that employs centrifugal force to draw out the honey.

The extractor is started at a slow speed to prevent the

combs from breaking.

As the extractor spins, the honey is pulled out and up

against the walls. It drips down to the cone-shaped bottom

and out of the extractor through a spigot. Positioned under

the spigot is a honey bucket topped by two sieves, one

coarse and one fine, to hold back wax particles and other

debris. The honey is poured into drums and taken to the

commercial distributor.


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Processing and bottling

At the commercial distributor, the honey is poured into

tanks and heated to 120F (48.9C) to melt out the crystals.

Then it is held at that temperature for 24 hours. Any

extraneous bee parts or pollen rise to the top and are

skimmed off.

The majority of the honey is then flash-heated to 165F

(73.8C), filtered through paper, then flash cooled back

down to 120F (48.9C). This procedure is done very

quickly, in approximately seven seconds.

There are several methods for removing honey combs. The

beekeeper can either sweep the bees off the combs and guide

them back into the hive or inject a puff of smoke into the hive.

When the bees sense the presence of fire, they gorge on honey in

an attempt to take as much as they can with them before fleeing.

Somewhat tranquilized by engorgement, the bees are less likely


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to sting when the hive is opened. Alternately, a separator board

can be placed between the honey chamber and the brood

chamber. When the bees in the honey chamber discover that

they have been separated from their queen, they move through a

hatch that allows them to enter the brood chamber, but not

reenter the honey chamber.

Although these heating procedures remove some of the

honey's healthful properties, consumers prefer the lighter,

bright-colored honey that results.

A small percentage, perhaps 5%, is left unfiltered. It is

merely strained. The honey is darker and cloudier, but there

is some market for this unprocessed honey.

6 The honey is then pumped into jars or cans for shipment

to retail and industrial customers.

Byproducts/Waste


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Four major byproducts of the honey-making process:

beeswax, pollen, royal jelly, and propolis. Beeswax is

produced in the bee's body as the nectar is transforming

into honey. The bee expels the wax through glands in its

abdomen. The colony uses the wax to cap the filled

honeycomb cells. It is scrapped off the honeycomb by the

beekeeper and can be sold to commercial manufacturers

for use in the production of drugs, cosmetics, furniture

polish, art materials, and candles.


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[PROCESS OF HONEY FROM INPUTS TO

CONSUMPTION

Inputs

Beekeeping

Collection & Processing

Trading

Consumption

Wooden

Boxes,

Bees Feed

Place Bee Hives,

Extract Honey

Collect Honey,


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are satisfied with the current quality and price of the honey. So we decided to

promote our product through free sample are offering to customer to try the

product and convincing our potential customers about better quality and lesser

price of our product to the potential customers.

PACKAGING POLICY

Since our product is high value items so packaging is required. The packaging will

present the product in an attractive way the preferred package for honey is the

glass jar by using high quality labels that show the brand, the nutrition

information, expiry date, and other important consumer information.

DISTRIBUTION POLICY

Distribution system is the channel through which we distribute product and

services to the target customers.

As we all know that an organization must have a sound distribution policy in order

to mobilize its resources through proper channel.

In our organization we have number intermediaries and distributers through

which honey is distributed to the target customer.

DISTRIBUTION OF HONEY


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MARKET COMPETITION

In order to run a successful enterprise it is necessary to keep an eye on every stepof our competitors and to be ahead of them in our decision making.

We have done market research in order to find out our major and minor

competitors in the potential demand market. They are as follows: -

MAJOR COMPETITORS

Competitor name Product name Price (per kg)Dabur India limited Dabur honey 240Baydhnath 250Patanjali Patanjali pure

honey300

Mehsons Mehsons purehoney

275

MINOR COMPETITORS

Competitorsname

Product name Price (perkg)

Pragya privatelimited

Pragya honey 185


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Mayure privatelimited

Honey 190

BEST WAY OF CONSUME HONEY

TRADING ACCOUNT OF 1st

YEAR

Dr. Cr.

PARTICU

-LARSAMOUN

TPARTICU

-LARS

AMOUN

T

To

Purchase235000 By Sales 450000

To Wages 54000 By Closingstock

30000

To GrossProfit c/d

191000

Total 480000 480000


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PROFIT &LOSS ACCOUNT OF 1stYEAR

Dr. Cr.

PARTICULARS AMOUNT PARTICULARS AMOUNTTo Travelling

expenses8400 By Gross Profit b/d 191000

To Establishment

expenses40,000 By Scraps 1000

To Salaries 36,000To Stationery 960To Electricity 6,000To License fee 5,000To Advertisement 6,000To Rent 56,000To Net Profit 33,640TOTAL 192000 192000

BALANCE SHEET OF 1st

YEAR

LIABILITIES AMOUNT ASSETS AMOUNTCapital 300000 Machinery 20000

P/L 33640 Furniture 20690Creditors 3000 Other Fixed 202950


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AssetsCash in Hand 20000Cash at Bank 33000Closing stock 30000

Debtors 10000TOTAL 336640 336640

TRADING ACCOUNT OF 2ndYEAR

Dr. Cr.

PARTICULARS AMOUNT PARTICULARS AMOUNTTo Opening

Stock30,000 By Sales 5,00,000

To Purchases 2,40,000 By Closing Stock 40,000To Wages 54,000To Gross Profit

c/d2,16,000

TOTAL 5,40,000 5,40,000

PROFIT &LOSS ACCOUNT OF 2nd

YEAR


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PARTICULARS AMOUNT PARTICULARS AMOUNTTo Travelling

expenses9,400 By Gross Profit

b/d2,16,000

To Salaries 36,000 By Scraps 2000To Stationery 960To Electricity 8,000To Advertisement 9,000To Rent 65636To Dep:Machinery (15%) 3000Furniture (10%) 2,069Other Fixed Assets

(10%)20,295

To Bad Debt 1,000To Net Profit 62,640TOTAL 218000 218000

BALANCE SHEET OF 2nd

YEAR

LIABILITIE

SAMOUN

TASSETS AMOUN

TCapital 315000

Add: Net Profit

626403,77,640 Furniture 20,690

Less dep: 2,06918,621

Creditors 2,000 Machinery20,000Less dep: 3,000

17,000

Other Fixed

Assets 2,02,950

Less dep:20,2951,82,655


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Less Bad debt:1,000Investment 33,640Cash in Hand 28,724Cash at Bank 50,000Closing Stock 40,000

TOTAL 3,79,640 3,79,640

RATIO ANALYSIS

Current Ratio:-

Current assets/current liabilities

Current assets:-cash in hand, cash at bank, closing

stock, debtors.

1st

year=20,000+33,000+30,000+10,000=930002

ndyear=50,000+28724+40,000+9000=127724

Current liabilities:- creditors

1styear=3000

2ndyear=2000

1styear ratio=31:12

ndyear ratio=63:1

QUICK RATIO:-

Current assets-closing stock/current liabilities


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1styear:(93000-30000)/3000

=21:1

2nd

year:(127724-40000)/2000

=43:1

ACTIVITY RATIO:-

WORKING CAPITAL TURNOVER=Net sales/Net working

capital

1styear:450000/(93000-3000)

=3.9 times

2

nd

year:500000/(127724-2000)=5 times

Fixed assets turnover=Net salesNet fixed assets

1styear=450000/(200000+20690+202950)

= 1.8 times

2ndyear=500000/(17000+18621+182655)= 2.2 times

PROFITABILITY RATIO:-

Net profit margin=Net profit x 100


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CONCLUSIONS OF RATIOS

RATIO 1stYEAR 1nd YEARCurrent ratio 31:1 63:1Quick ratio 21:1 43:1Activity ratioWorking capital

turnover3.9 times 5 times

Fixed assetsturnover 1.8 times

2.2 times

Profitability ratioNet profit

margin7.47% 12.5%

Gross profit

margin42.4% 43.2%


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LIMITATIONS

The time consumption between starting a new venture to

starting its production is too much. If not trained it is harmful.

Not very much moving of people environment is needwhich is not easily available.

To get Permission from authorities take time.


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CONCLUSION

It is not easy to enter in to the market.

Potential demand is high.

In few years demand is expected to increase highly.

It is very much profitable business.


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