suddh mineral water

8/3/2019 Suddh Mineral Water

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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


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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.


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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.


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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



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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.


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.


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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


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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


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


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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/-


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


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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/-


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


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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


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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


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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


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SELLING PRICE 1litre-Rs.10 500ML-Rs.12-14 1litre-Rs.12


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


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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.


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suddh mineral water

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