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FINANCIAL FEASIBILITY OF WATER INDUSTRY: PACKAGED DRINKING WATER BOTTLING PLANT
Project Report
On
“FINANCIAL FEASIBILITY OF WATER INDUSTRY: PACKAGED DRINKING WATER BOTTLING PLANT”
A Study SubmittedFor
The Partial fulfillment of the requirements of two years full time
Master of Business Administration
(MBA)
At
GEA NATIONAL COLLEGE
GUWAHATI, ASSAM, INDIA(Under Punjab Technical University)
Submitted by:
Rupamjyoti Das
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Roll No : 9208230235
Session : 2009 - 2011
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PREFACE
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CERTIFICATE
This is to certify that, Rupamjyoti Das, a student of my college of MBA 4th semester holding Punjab Technical University Roll No. 9208230235 has done his project titled “FINANCIAL FEASIBILITY OF WATER INDUSTRY: PACKAGED DRINKING WATER BOTTLING PLANT”
I found him good during his course tenure in my college.
I wish him success in life.
Mr. Nabajyoti Bharali
Managing DirectorGEA National CollegeGuwahati
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CERTIFICATE
This is to certify that, Rupamjyoti Das, a student of our college of
MBA 4th semester has done his project titled “FINANCIAL
FEASIBILITY OF WATER INDUSTRY: PACKAGED DRINKING WATER
BOTTLING PLANT” for the partial fulfillment of his MBA degree.
I found him good during his course tenure in our college.
I wish him success in life.
Mr. Prantim Thakur
Institutional Project Guide
Department of Management
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SELF CERTIFICATE
I do hereby state that, the project report entitled, “FINANCIAL
FEASIBILITY OF WATER INDUSTRY: PACKAGED DRINKING WATER
BOTTLING PLANT” has been done by me only and submitted for the
partial fulfillment of the degree of Master of Business
Administration at GEA NATIONAL COLLEGE, Guwahati.
I also declare that all the contents of this report has not been
submitted anywhere for the award of this degree.
Rupamjyoti DasMBA 4th SemesterGEA National CollegeGuwahati
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ACKNOWLEDGEMENT
At the very beginning, I would like to express my sincere gratitude
to my respected, admirable & honorable external guide Mr. Prantim
Thakur for his invaluable suggestions, instruction, advice and
inspirations.
I express my profound sense of Mr. P. Banarjee and Mr. Rohit
Sharma for their guidance and suggestions in the project.
I would also like to thank all the other faculty members of our
college who helped me a lot in completing this project successfully.
Lastly, I would like to express my whole hearted credit to all my
classmates specially Jibrail , Rumi, Bhaskar, Arun, Hurmuj, Foijuddin
& Mridusmita and all well wishers for their encouraging advices that
have helped me made this project a possible endeavor in my life.
I am very thankful to Almighty, my parents and all my friends.
Thanking you all.
Rupamjyoti DasMBA 4th SemesterGEA National CollegeGuwahati
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EXECUTIVE SUMMARY
Project Title : Financial Feasibility ofWater Industry: PackagedDrinking Water BottlingPlant.
Duration : 50 days.
Place of work : Kataki Para, Lalung Gaon,Lakhara, Guwahati – 34.
Name of the Organisation : CRG Beverages and FoodProducts, (Champion PackagedDrinking Water).
Institutional Guide : Mr. Prantim Thakur;
Mr. P. Banarjee.
Organizational Guide : Mr. Vinod Kumar,Manager,CRG Beveragesand Food Products.(Champion Packaged Drinking Water).
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CHAPTER -1 INTRODUCTION
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Project Prologue
WATER INDUSTRY
Distilled WaterPackaged Drinking Water Mineral Water Water Softner Water Treatment Chemical Water Purification (PURIFIER) Ice Manufacturers Packaged Soda
Water is a key—
1. To the social equity;2. To environmental stability;3. To cultural diversity;
Water is firmly linked with health. Pure and Safe drinking water has always been a necessity. The tradition & style of serving drinking water in India, has however changed quiet dramatically during the last decade. The introduction of ‘Bottled Water’ or ‘Packaged Drinking Water’ has changed the tradition of serving water. This has also ushered the use of POLYMERS or PLASTICS as a mean for water storage & distribution.
The categories of Bottled Water in India are –
a) Packaged Natural Mineral Water; &b) Packaged Drinking Water;
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In India, the Bottled Water Industry colloquially is called the Mineral Water Industry. Now-a-days, this industry is a symbol of new life style in India. The Packaged Drinking Water industry in India is estimated at Rupees 850.00 Crores with over 200 brands floating in the market; most of which have restricted territorial distribution.
This is a growing market in India as hygiene & quality consciousness among the consumers is on the rise. The Bottled Water market is growing at a rapid rate of around 20%. At this growth rate, the Rupees 850.00 Crores per year market is estimated to overtake the Soft Drinks market soon. There are around 180 brands in the unorganized sector; the small players account for nearly 20% of the total market.
In India, the per capita consumption of Bottled Water is less than half a liter per year, whereas the per capita consumption of Bottled Water in France is 111 liters per year & 45 liters per year in the U.S. These facts points towards the future potential and high growth prospects of the Water Industry in India.
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Brief history about the product
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Properties
RAW WATER CHARACTERISTICS
pH : 6 to 8
Total Suspended Solids : Nil
Total Dissolved Solids : 2000
Iron as Fe : <1
Total Hardness as CaCo3 : 1000
Total Alkalinity as CaCo3 : 250
P.alkalinity as CaCo3 : Nil
Chloride as CaCo3 : <200
Fluoride : <1
Sulphate as CaCo3 : 25
Total Silica as CaCo3 : <50
Sodium as Na : <50
N.B.: The above figures of raw water analysis are assumed.
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BIS Specifications & Requirements
REQUIREMENTS TO BE COMPLIED WITH BY THE APPLICANT OF PACKAGED DRINKING WATER FOR GRANT OF BIS LICENCE ACCORDING TO IS 14543:2004
A. GENERAL REQUIREMENTS
PRODUCT CERTIFICATION SCHEMES
(Updated on 21 05 2007)
The Product Certification Scheme of BIS aims at providing Third Party Guarantee of quality, safety and reliability of products to the ultimate customer. Presence of ISI certification mark known as Standard Mark on a product is an assurance of conformity to the specifications. The conformity is ensured by regular surveillance of the licensee's performance by surprise inspections and testing of samples, drawn both from the market and factory.
1. INTRODUCTION
The Bureau of Indian Standards, empowered through a legislative Act of the Indian Parliament, known as the Bureau of Indian Standards Act, 1986, operates a product certification scheme, and has till date granted more than 30,000 licenses to manufacturers covering practically every industrial discipline from Agriculture to Textiles to Electronics. The certification allows the licensees to use the popular ISI Mark, which has become synonymous with Quality products for the Indian and neighbouring markets over the past 50 years. The Bureau's predecessor, the Indian Standards Institution began operating the product certification Scheme in 1955. Presently more than 19,000 licenses are in operation covering about 1,000 products.
2. OPERATING PRINCIPLE
The BIS Product certification Scheme operates in an impartial, non discriminatory and transparent manner. The documents stating the powers, rights and responsibilities of BIS and the affected sectors of society are published by the Government of India as the Bureau of Indian Standards Act, 1986, Rules and (Certification) Regulations, 1988. The specific procedure for operating a license is given in another document called the Scheme of Testing and Inspection (STI), described later. Procedures provide for maintaining a very high degree of confidentiality and integrity among its personnel who perform certification related tasks. A body called the ' Certification Advisory Committee' composed of persons from varied sectors like manufacturers, consumers, Government agencies, industries associations reviews the performance of the scheme and advises on key policy issues. Internally, a senior functionary designated as 'Additional Director General (Marks)' is
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responsible for ensuring that the scheme operates within the framework of rules and procedures established.
3. CERTIFICATION SYSTEM
The BIS product certification scheme is essentially voluntary in nature, and is largely based on ISO Guide 28, which provides general rules for third party certification system of determining conformity with product standards through initial testing and assessment of a factory quality management system and its acceptance followed by surveillance that takes into account the factory Quality management system and the testing of samples from the factory and the open market. All BIS certifications are carried out in accordance with Indian Standards, which are amenable to certification. A large number of operational elements of the BIS product certification scheme correspond with the requirements of ISO Guide 65.
4. TYPES OF LICENSING
Although, the scheme itself is voluntary in nature, the Government of India, on considerations of public health and safety, security, infrastructure requirements and mass consumption has enforced mandatory certification on various products through Orders issued from time to time under various Acts. While BIS continues to grant licenses on application, the enforcement of compulsory certification is done by the notified authorities. For the list of items brought under mandatory certification, together with the corresponding Indian Standard Number, and the authorities responsible for enforcing the orders.
Under separate arrangements with statutory agencies, some products have been placed under special certification schemes of lot or batch inspection carried out by BIS inspecting officers. A majority of Gas cylinders, regulators and valves are certified through such schemes. Under agreement with UNICEF, Deep well hand-pumps, a critical potable water supply source for rural areas is also certified under a lot inspection scheme.
For all other products, the manufacturer is permitted to self certify the products after ascertaining its conformity to the Standard licensed for. Through its surveillance operations, the Bureau maintains a close vigil on the quality of certified goods.
5. OPERATIONAL AREAS
The BIS Product Certification Scheme is open to manufacturers in all countries without discrimination. While a license can be granted for any Indian Standard specifying product characteristics, which is amenable to certification, the broad areas of technologies now under certification are:
• Textiles • Chemicals and Pesticides • Rubber and Plastic products • Cement and concrete products • Building materials
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• Pumping, irrigation, drainage and sewage equipment • Pipes and fittings for water supply • Basic metals and fabricated metal products • Machinery and equipment • Electrical, electronics and optical equipment • Automotive components • Agriculture, food and tobaccos • Black tea and beverages • Packaged drinking water and Natural mineral water • Leather products • Wood products • Paper and pulp products • Testing instruments
6. RESOURCES
The finances of the Bureau are self managed, with certification operations accounting for more than 90 percent of the revenue. The BIS employs a staff complement of engineers and scientists to cater to all its fields of operations. They are trained into evaluation and assessment techniques to a high degree of professional competence. All preliminary and surveillance inspections are carried out by qualified personnel only. BIS has set up eight laboratories in different cities of India for testing samples of products taken during preliminary and surveillance operations. In addition, independent laboratories having demonstrated ability and a quality system complying with ISO/IEC Guide 17025:1999 have been recognized for testing of samples.
The certification scheme operates through a network of 33 Branch Offices set up in State capitals or major industrial towns and 5 Regional Offices overseeing the work of the Branch offices.
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PROCEDURE FOR GRANT OF BIS LICENCE FOR DOMESTIC MANUFACTURERS
(Updated on 21 05 2007)
The applicant has the option to choose any of the following two procedures for grant of BIS license:
i) Normal Procedure – In the normal procedure, the applicant is required to submit the filled in application along with required documents and requisite fee to the nearest BIS branch office. Subsequently, after recording of the application, a preliminary factory evaluation is carried out by BIS officer to ascertain the capability of the applicant/manufacturer to produce goods according to the relevant Indian Standard and to verify the availability of complete testing facility and competent technical personnel. Samples are tested in the factory and also drawn for independent testing. Grant of license is considered by BIS provided the samples pass during independent testing, preliminary evaluation is satisfactory and the applicant agrees to operate the defined Scheme of Testing & Inspection and pay the prescribed marking fee.
ii) Simplified Procedure – In the simplified procedure, applicant is required to furnish the test report(s) of the sample(s) got tested by him in the BIS approved laboratories, along with the application. If the test report(s) and other documents are found satisfactory, a verification visit is carried out by BIS. The license is granted thereafter if the verification report is found satisfactory. The applicant also has the option to get the documents and other details as specified in the application, certified by a Chartered Engineer and submit the same to BIS. The license then shall be granted after scrutiny of the documents and report submitted by Chartered Engineer. By this procedure the license is expected to be granted within 30 days of receipt of application by BIS, provided all required documents are furnished and found satisfactory.
Note 1: Simplified procedure is available for all products except certain items under mandatory certification like gas cylinders, valves, regulators, cement, etc.Note 2: If any license granted as per simplified procedure is cancelled in the event of failure of verification samples, the fresh application shall only be considered as per normal procedure.Note 3: All India first licenses for any product shall be granted as per normal procedure only.Note 4: There is a separate scheme for Foreign Manufacturers and Indian Importers.
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B. PRODUCT SPECIFIC REQUIREMENTS(FOR PACKAGED DRINKING WATER)
List of Test Equipments, Glass wares & Chemicals Annex A
List of BIS approved outside lab for the Product Water Annex B Containers (including lids/caps)
Details of samples of the product/containers to be drawn during Annex C BIS visits.
Acceptance of Marking Fee Annex D
Acceptance of Scheme of Testing and Inspection (STI) Annex E
Guidelines for assessment of Hygienic conditions with Annex F Explanatory notes for guidance
List of Indian Standards which a Packaged Drinking Water Industry Annex G Must have in original
Undertaking for getting the samples tested as per STI frequency from BIS approved/NABL accredited outside lab.
Consent letter from concerned outside lab for testing of sample (Ref. Sr. No. 8). Copy of the appointment letter, qualification certificates for Chemist and Microbiologist No Objection Certificate (NOC) from the concerned office of Central Ground Water Authority
(if applicable in the state). Detailed Manufacturing process indicating treatment for disinfection along with Process
Flow Chart. Clause 3.2 of IS 14543:2004 specifies various processes for manufacturing Packaged Drinking Water
Copies of Medical Examination Reports of the employees engaged in washing/filling of the product for any communicable/skin diseases and fitness to work in a food industry.
Details about the arrangements of pest control treatment such as an agreement/contract with the agency. Also details of Cleaning in Place (CIP)
Declaration of Shelf-life of the product separately for each type of container (e.g. 1littre, 2 litre, 20 litre etc.).
Undertaking Regarding clause 6 (Packing) of IS 14543:2004 and clause 7.2 of IS 14543:2004 (Labelling Prohibitions)
Obtain request letter from BIS for getting the sample tested for Radio Active Residues, from BARC before submitting the application and test report received from BARC is to be submitted along with the application form.
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Uses & Applications
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CHAPTER -2 MANUFACTURING TECHNIQUES
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Flow Chart Diagram
1. RAW WATER TANK OF CAPACITY > 20 M3 CIVIL STRUCTURE 2. RAW WATER FEED PUMP 3. MULTIGRADE SAND FILTER4. ACTIVATED CARBON FILTER5. 10/5 BAG FILTER6. ANTISCALENT DOSING SYSTEM7. MULTISTAGE CENTRIFUGAL PUMP (HIGH PRESSURE PUMP)8. R.O.MEMBRANE SKID CONSISTS OF:-
i. R.O. Membranes ii. Pressure Tubes
9. MINERAL DOSING SYSTEM10. OZONE GENERATOR11. OZONE PRODUCT WATER TANK 12. MICRON CARTRIDE MODULE 2/1/0.5 MICRON13. SYSTEM CONTROL PANEL 14. RO REJECT DRAIN
CONTROL PANEL CONSISTS OF:A) Flow MetersB) Pressure MonitorsC) Online Conductivity/pH MeterD) Sampling TapE) Operation Switches
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Formulae detailed process of manufacture
Processing and Bottling Raw water to be processed is collected in tanks. A known quantity is pumped into the above tank where the water is dozed with alum for coagulation with heavy metals or insoluble matters. The water after coagulation is allowed to settle for an hour. The impurities may be removed by Reverse Osmosis techniques also. The supernatant water is taken to the chlorination tank where primary disinfection is brought about by bubbling chlorine gas. The water is then passed through sand filters for trapping of undissolved impurities. The water after sand filtration is passed through Carbon filters for removal of odour, colour and also for dechlorination. It is then passed through series of micro fillers comprising 5 micron, 1 micron and 0.4 micron filter followed by ultraviolet disinfection system for terminal disinfection. Packing is done in PET bottles of Half/One/Two litre(s) capacity through an automatic rinsing, filling, and capping machine fitted with an Ozone generator. The bottles after capping are shrink wrapped (Optional) and packed in corrugated boxes of one dozen each.
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Technical specification
(MECHANICAL)
RAW WATER PUMP:
Quantity offered : One No.Type : Mono-block Centrifugal.Operating flow rate : 4 M3/Hr Operating Pressure : 4.0 kg/cm2Material of construction : SS-316Type of drive : I phase, squirrel cage induction motor.KW/RPM : 1.5/2900 (Approx).Make : N/A
MULTIGRADED SAND FILTER (MSF)
Quantity offered : One No.Type : Down flowSize : 16” x 65”Operating flow rate : 4 M3/Hr Operating Pressure : 4 kg/cm2Type of Media : Dual – Sand and Anthracite.Supporting Media : Gravels and SilexM.O.C. of Shell : FRPMake : N/A
ACTIVATED CARBON FILTER (ACF)
Quantity offered : One Nos.Type : Down flowSize : 16” X 65”Operating flow rate : 4 M3/HrOperating Pressure : 3.5 kg/cm2Type of Media : Activated Carbon flakesQty. of Resin : 150 KgsM.O.C. of Shell : FRPMake : N/A
MICRON CARTRIDGE FILTER
No. of Cartridges : Two NosType : Disposable
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Operating flow rate : 4 M3/HrOperating Pressure : 3 kg/cm2Micron Rating : 5/1 MicronM.O.C of Housing : FRPMake : N/A
ANTISCALENT DOSING UNIT
Quantity offered : ONE Nos.Type : Electronic DiaphragmOperating flow rate : 5 LPHMake : N/A
HIGH PRESSURE PUMP
Quantity offered : One Nos.Type : Multistage Centrifugal.Operating flow rate : 4 M3/Hr Operating Pressure : 10 to 15 kg/cm2Material of Construction : Stainless Steel -316Make of Pump : N/AType of drive : Three phase, Squirrel cage induction motor.KW/RPM : 2.75/ 2900 (Approx)Make of Motor : N/A
R.O. SKID (SS -304)
Number of stream offered : OneType of membrane : Spiral wound TFC brackish Water Membrane.Make : N/AOperating Pressure : 10 to 15 kg/cm2Material of Construction : Polyamide - Thin Film Composite.Material of Housing : FRPMake : N/A
MINERAL DOSING SYSTEM
Quantity offered : 1 No.No. of Dosing Pumps : 3 NoType : Drip Injection.Operating flow rate : 5 LPHMake : N/A
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OZONATOR
Quantity offered : One NoGeneration flow rate : 2 GramM.O.C : SS -316Make : N/A
PRODUCT WATER STORAGE TANK:
Quantity Required : One Nos.Material of Construction : SS-304Capacity : 2 M3 (2000 LITERS)Make : N/A
MICRON CARTRIDGE MODULE
No. of Cartridges : Three Nos.Type : Disposable Cartridge.Operating flow rate : 2 M3/HrOperating Pressure : 3.0 kg/cm2Micron Rating : 2/1/0.5MicronM.O.C of Housing : SS -316M.O.C of Cartridge : Polypropylene.Make : N/A
ULTRA VIOLET DISINFECTION SYSTEM
Quantity offered : 3 Nos.Type : Horizontal.Operating flow rate : 2 M3/HrOperating Pressure : 1.0 kg/cm2M.O.C of Housing : SS -304Make of UV Lamp : PhilipsMake : N/A
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CHAPTER -3 MARKET SURVEY
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Present market position
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Expected future demand
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Statistics of import & export
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Exports prospects
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Names & Address of existing units
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CHAPTER -4 PERSONNEL REQUIRMENTS
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Requirement of staff & labor
Administrative Personnel
1. Factory Manager2. Clerk-cum Computer Operator3. Store cum-Purchase Officer4. Accountant-cum-Cashier5. Sweeper (part time)
Technical Personnel
1. Production Manager- cum-Chief Chemist2. Lab. Assistant3. Production Supervisor4. Skilled Workers including Electricians and Mechanic Driver5. Un-skilled Workers6. Chowkidar
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Personnel management
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Skilled & Unskilled labor
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CHAPTER -5 PLANT AND MACHINERY
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List of plant & machineries
Sl. No Names of Plant & Machineries Quantity in Nos.
1 Aluminum Treatment Tanks 32 Reverse Osmosis Plant 2000 Liters 13 Chlorination tanks made of stainless steel 24 Sand filter 15 Activated Carbon filter --6 Micron filters(5, 1 and 0.4 Micron) 37 Ultraviolet disinfectant system 18 Electronic dozer for aluminum 19 Electronic dozer for Chlorine 2
10 Ozone Generator 111 Raw and Purified water collection tanks with motor and
accessories4
12 Automatic rinsing filling and capping machine --13 Shrink wrapping machine for bottle --14 Miscellaneous tools equipments, pipeline etc. and Plastic
crates etc.--
15 Laboratory testing and Quality Control, Micro-biological instruments etc
--
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Miscellaneous items & accessories
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Instruments
(INSTRUMENTATION)
PRESSURE MONITORS
Type : Bourdon tube type.Quantity : One lot.M.O.C : wetted parts –SS Dial Size : 150 mm.Mounting : Bottom entry – Field.
Back entry – PanelConnection : 1/4” BSPTRange : 0 – 150 psi – low pressure
0 – 600 psi – high pressure
FLOW INDICATOR
Quantity : Two Nos.Type : Panel MountedLocation : R.O. Product and Reject.Material of Construction : Acrylic, Float –SS 304Make : N/A
ONLINE TDS/CONDUCTIVITY METER
Quantity : One Nos.Type : Inline digital.Range : 0 – 1990 ms/cm Make : N/A
ONLINE pH METER
Quantity : One Nos.Type : Inline digital.Range : 0 – 1990 ms/cm Make : N/A
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Laboratory equipments & accessories
LIST OF EQUIPMENT
BOD Incubator : Range 0-60 Incubator : Range 0-110 Oven : Range 0-300 Autoclave Balance Colony counter Centrifuge Fume Hood Distilled Water Plant Hot Plate Heating Mental Magnetic Stirrer Micro Scope Muffle Furnace P.H.Meter Screw gauge Spectrophotometer Laminar Air flow Vibrating table Vernier Caliper Vacuum pump Water bath Turbidity meter Thermometer 0-50C
LIST OF GLASS WARE
S.NO. DESCRIPTION CAPACITY UNITS
1 BEAKER GLASS 50 ML 6
2 -DO- 100 ML 6
3 - DO- 250 ML 6
4 -DO- 500 ML 6
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5 -DO- 1000 ML 2
6 BEAKER PLASTIC 100 ML 6
7 -DO- 500 ML 3
8 -DO- 1000 ML 2
9 BURETTE 50 ML 2
10 -DO- 25 ML 1
11 BURETTE STAND - 3
12 BUTTER PAPER - 1 SET
13 CONICAL FLASH – GLASS 50 ML 3
14 -DO- 250 ML 6
15 -DO- (PLASTIC) 250 ML 3
16 DESICCATOR GLASS - 1
17 DESICCATOR VACCUM - 1
18 DERHAM TUBES - I PACKET
19 DISTILLATION ASSY –GLASS 500 ML 1
20 DROPPING BOTTLES 60 ML 6
21 DROPPERS 10 ML 6
22 EVAPORATING DISH 100 ML 3
23 FILTRATION ASSEMBLY –SS 1000 ML 1
24 FILTER PAPER SHEET - I SET
25 FILTER PAPER WHATMAN - 1 PKT
26 FILTER PAPER 0.45 MICRON - 25 NOS
27 FUNNEL 75 ML 3
28 FUNNEL 100 ML 3
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29 GAS STRIPPING APPARATUS 1000 ML 1
30 IODINE FLASK 250 ML 2
31 MEASURING CYLINDERS 10 ML 2
32 -DO- 25 ML 2
33 -DO- 50ML 2
34 -DO- 100 ML 2
35 -DO- 250 ML 1
36 MICRO SLIDES - 1 PKT
37 NESSLER’S TUBE 50 ML 6
38 NESSLER’S TUBE 100 ML 6
39 NESSLER’S TUBE STAND 2
40 NON ABSORPTION COTTON 1 ROLL
41 PETTRI DISH 150 MM 24
42 PIPPET VOLUMETRIC 1 ML 2
43 -DO- 5 ML 2
44 -DO- 10 ML 2
45 -DO- 25 ML 2
46 -DO- 50 ML 1
47 -DO- GRADUATE 1 ML 2
48 -DO- 5 ML 2
49 -DO- 10 ML 2
50 PIPPET STAND 2
51 PLATINUM LOOP 2
52 REAGENT BOTTLE – GLASS 100 ML 12
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53 -DO- 250 ML 12
54 -DO- 500 ML 6
55 -DO- AMPROS BOTTLE 100 ML 12
56 -DO- 500 ML 6
57 SEPARATING FUNNEL 125 ML 3
58 SEPARATING FUNNEL STAND 2
59 SPATULLAS (NICKEL) MEDIUM 6
60 STANDARDS FLASK 25 ML 2
61 -DO- 50 ML 2
62 -DO- 100 ML 2
63 -DO- 200 ML 2
64 -DO- 250 ML 2
65 -DO- 500 ML 1
67 STIRRER GLASS 6
68 TEST TUBES 1 BOX
69 TISSUE PAPER 3 ROLLS
70 TONGS 3
71 WATCH GLASS SMALL 6
72 -DO- MEDIUM 6
73 -DO- BIG 6
74 WIDE MOUTH GLASS STOPPER BOTTLE 1000 ML 1
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LIST OF CHEMICALS
S.NO. DESCRIPTION QUANTITY
1 Acetic Acid 500 ml
2 Activated Carbon 500 gm
3 Aluminum Potassium Sulphate 500 gm
4 Ammonia 500 ml
5 Ammonium Acetate 500 gm
6 Ammonium Buffer 500 ml
7 Ammonium Chloride 500 gm
8 Ammonium Dichromate 500 gm
9 Di Ammonium Hydrogen Phosphate 500 gm
10 Antimony Metal 100 gm
11 L- ascorbic Acid 100 gm
12 Barium Chloride 500 gm
13 Boric Acid 500 gm
14 Brome Cresol Green Indicator 1 Bottle
15 Calcium Carbonate 500 gm
16 Calcium Hydroxide 500 gm
17 Chloroform 500 ml
18 Chromotrophic Acid 100 gm
19 Coboltous Chloride 100 gm
20 Copper Metal 100 gm
21 Cyclohexen 500 ml
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22 Dodecyl Benzene Sulphonic Acid Methyl Ester 100 gm
23 Di iso propyl ether 500 ml
24 EDTA –Di sodium salt 100 gm
25 Erichrome Black T 25 gm
26 Erichrome Cyanine R 25 gm
27 Ethyl Acetate 500 ml
28 Ethanol 500 ml
29 Ferrous Ammonium Sulphate 500 gm
30 Ferric Chloride 500 gm
31 Ferric Citrate 100 gm
32 Glycerol 500 ml
33 Hexamine 500 gm
34 Gelatin Powder 100 gm
35 Hydrogen Peroxide 500 ml
36 Hydrazine Sulphate 100 gm
37 Hydrochloric Acid 500 ml
38 Hydroxylamine Hydrochloride 100 gm
39 Iso Propyl Alcohol 500 ml
40 Manganese Sulphate 500 gm
41 Methanol 500 ml
42 Methalene Blue 25 gm
43 Methyl Orange 125 ml
44 Methyl Red 25 gm
45 NEDA 5 gm
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46 Neocuproine 5 gm
47 N, N-dimethyl P- Phenylene diamine oxalate 100 gm
48 Nitric Acid 500 ml
49 Patton & Reeder’s Indicator 25 gm
50 Phenolphthalein Indicator 25 gm
51 1-10 Phenonthroline 5 gm
52 PH Buffer Tablets 4, 7 & 9.2 1 packet
53 Phosphoric Acid 500 ml
54 Potassium Chloro Platinate 1.0 gm
55 Potassium Dichromate 500 gm
56 Potassium Chromate 500 gm
57 Potassium Chloride 500 gm
58 Potassium Cyanide 10 gm
59 Potassium Iodide 100 gm
60 Potassium Permanganate 500 gm
61 Potassium Nitrate 500 gm
62 Potassium Per Iodate 100 gm
63 Silver Nitrate 25 gm
64 Sodium Chloride 500 gm
65 Sodium Bicarbonate 500 gm
66 Sodium Ascorbate 100 gm
67 Sodium Hydroxide 500 gm
68 Tri-Sodium Citrate 500 gm
69 Sodium Acetate 500 gm
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70 Sodium Carbonate 500 gm
71 Sodium Nitrate 500 gm
72 Sodium Oxalate 500 gm
73 Sodium Sulphate 500 gm
74 Sodium Sulphide 500 gm
75 Sodium Thiosulphate 500 gm
76 Sulphanilamide 100 gm
77 Sulphuric Acid 500 ml
78 Starch 500 gm
79 Urea 500 gm
80 Zincon 5.0 gm
81 Zinc Sulphate 500 gm
82 Mac Conkey Broth 100 gm
83 Mac Conkey Agar 100 gm
84 VRL Agar 100 gm
85 DRCM 100 gm
86 DL Asparagines Proline Broth 100 gm
87 Plate Count Agar 100 gm
88 Potato Dextrose Agar 100 gm
89 Stain Kit 1 set
90 Sulphur dioxide 500 gm
91 Nutrient Broth 100 gm
All the above equipment, glass ware and chemicals & reagents form the complete set up of In-house Laboratory for Chemical and Microbiological analysis as per BIS Standard (IS -14543:2004)
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Plant location
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Electrification
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Electric load & Water maintenance
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Suppliers/Manufacturers of Plant & Machineries
Addresses of Plant and Machinery Suppliers
1. M/s. Sonalifabs71, Biren Roy Road (West)Kolkata-61.
2. M/s. Enviro Tech Utility,32A, Main Patel Road,Opposite Wings Show Room,West Patel Nagar,New Delhi-110 008.
3. M/s. Watrion Water and FilterEngg. Pvt. Ltd.1 Harsivan Apartment, GroundFloor, (Behind Canara Bank),West J.P. Road, Andheri (West),P.B. No. 7372,Mumbai-700 059.
4. M/s. Rital Agencies55 III Main Road, Gandhi Nagar,Chennai-700 020.
5. M/s. Ion Exchange India Ltd.Ticcon House,Dr. E. Houses Road,Mahalaxmi,Mumbai-400 011.
6. M/s. Alpha Engineering158, Pocket-E-20, Sector-II,Rohini, Delhi-110 085.
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CHAPTER -6 LAND AND BUILDING
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Requirement of land area
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Rates of land
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Built up area
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Construction Schedule
It is expected that total time of about 9 months will be taken from the date of approval of the scheme for complete implementation. Break-up of the activities and relative time for each of them is shown below:
Sl No. Nature of Activity Time Period(in months)
1 Preparation of Project and its approval 0-1 month2 SSI Provisional Registration 1-3 months3 Sanction of Loan 2-5 months4 Clearance from Pollution Control Board and
taking permission from Municipal Health Authority/BIS etc.
2-5 months
5 Placement Order for machinery of equipment 4-6 months6 Installation of machinery and equipment 6-8 months7 Power connection arrangement from Electricity
Board2-6 months
8 Appointment of staff etc. 5-8 months9 Trial run 8-9 months
10 Commencement of Production and permanent registration/marketing
9 months onwards
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Plant Layout
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CHAPTER -7 RAW MATERIALS
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List of raw materials
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Properties of raw materials
RAW WATER CHARACTERISTICS
pH : 6 to 8
Total Suspended Solids : Nil
Total Dissolved Solids : 2000
Iron as Fe : <1
Total Hardness as CaCo3 : 1000
Total Alkalinity as CaCo3 : 250
P.alkalinity as CaCo3 : Nil
Chloride as CaCo3 : <200
Fluoride : <1
Sulphate as CaCo3 : 25
Total Silica as CaCo3 : <50
Sodium as Na : <50
N.B.: The above figures of raw water analysis are assumed.
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Availability of raw materials
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Required quality of raw materials
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Cost/Rates of raw materials
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CHAPTER -8 FINANCIAL ASPECTS
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Cost of raw materials
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Cost of Land & Building
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Cost of Plant & Machineries
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Fixed Capital Investment
Required Fixed Capital:
A Land and Building Amount (Rs. in lakh)
1 3 Katha Own Land 0.002 Total covered area required for filtration, raw
material storage, packaging material storage, machinery, Spare parts, store, Finished goods, Office, Quality Control Lab, Toilets, Electrical Switch room and miscellaneous etc. 6500 Sq. ft. @ Rs 400 per Sq. ft.
26.00
3 Boundary wall and Civil Works on gate etc. 3.00TOTAL 30.00
B Plant & Machinery Ind./ Qty Imp
(Rs. in lakh)
1 Aluminum Treatment Tanks Ind. 3 1.202 Reverse Osmosis Plant 2000 Liters -
do-1 3.20
3 Chlorination tanks made of stainless steel -do-
2 0.80
4 Sand filter -do-
1 0.50
5 Activated Carbon filter -do-
-- 0.60
6 Micron filters(5, 1 and 0.4 Micron) -- 3 0.407 Ultraviolet disinfectant system -- 1 0.328 Electronic dozer for aluminum -- 1 0.309 Electronic dozer for Chlorine -- 2 0.30
10 Ozone Generator -- 1 3.1511 Raw and Purified water collection tanks with
motor and accessories-- 4 1.60
12 Automatic rinsing filling and capping machine -- -- 7.5013 Shrink wrapping machine for bottle -- -- 0.15
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14 Miscellaneous tools equipments, pipeline etc. and Plastic crates etc.
-- -- 1.50
15 Laboratory testing and Quality Control, Micro-biological instruments etc
-- -- 1.50
TOTAL 25.32
C Other Fixed Assets (Rs. in lakh)
1 Cost of furniture, furnishing and Official accessories 0.882 Cost of deep bore tube well for water reservoir 1.303 Security Deposit to Electricity Department etc. 1.004 Preliminary and Pre-operative Expenses including
Company Formation, Project Preparation, Technical Consultancy, Travelling Expenses, Interest during construction period, Start-up Expenses etc.
1.50
5 Delivery van and contingency etc. 5.00TOTAL 9.68
D TOTAL FIXED COST (Rs. in lakh)
1 Land and Building 30.002 Plant & Machinery 25.323 Other fixed assets 9.68
GRAND TOTAL 65.00
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Working Capital
Required Working Capital:
ARaw Material (Rs. in
lakh)
1 PET/PVC bottle including cap labels etc. 1 lit. size @ 3.60 (3.75 lakh bottles)
13.50
2 Chemicals and Reagents etc. (L.S.) 0.503 Corrugated boxes, strip, tap etc. 3.10
TOTAL 17.10
SALARY AND WAGES
a) Administrative & Supervisorb) Technical Staffc) Utilitiesd) Other Contingent Expenses
ADMINISTRATIVE & SUPERVISOR
(a) Designation Nos. Salary Amount in Rs.
1 Factory Manager 1 6,000.00 6,000.002 Clerk-cum Computer Operator 1 2,500.00 2,500.003 Store cum-Purchase Officer 1 2,500.00 2,500.004 Accountant-cum-Cashier 1 3,000.00 3,000.005 Sweeper (part time) 1 1,000.00 1,000.00
TOTAL 5 15,000.00
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TECHNICAL STAFF
(b) Designation Nos. Salary Amount in Rs.
1 Production Manager- cum-Chief Chemist
1 6,000.00 6,000.00
2 Lab. Assistant 1 2,000.00 2,000.003 Production Supervisor 3 3,000.00 9,000.004 Skilled Workers including
Electriciansand Mechanic Driver
9 3,000.00 27,000.00
5 Un-skilled Workers 3 2,000.00 6,000.006 Chowkidar 3 2,000.00 6,000.00
TOTAL 20 56,000.00
UTILITIES
(c) Expenditure Total (Rs. in lakh)
1 Electricity 40 × 0.746 × 20 × 25 × 2.75 0.412 Fuels and other 0.04
TOTAL 0.45
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TOTAL SALARY + TOTAL WAGES (Rs.56,000.00 + Rs.15,000.00) = Rs.71,000.00
PERKS & BENEFITS @ 8.5% OF SALARY & WAGES = Rs. 6,000.00
TOTAL = Rs.77,000.00 (i.e., Rs.0.77 Lakh)
OTHER CONTINGENT/RECURRING EXPENSES
(d) Expenditure Amount in Rs.
1 Postage and Stationery 500.002 Telephone/Fax Charges 500.003 Consumable Stores 1,000.004 Repairing and Maintenance 1,000.005 Transport Charges 2,500.006 Advertisement and Publicity 500.007 Insurance and Taxes 300.008 Sales Expenses 3,200.009 License and other Fees 500.00
10 Miscellaneous Expenses 1,000.00TOTAL 11,000.00
TOTAL WORKING CAPITAL
TOTAL WORKING CAPITAL (per month) Total (Rs. in lakh)Raw Materials/Packaging Materials 17.10
Salary and Wages 0.77Utilities 0.45Recurring Expenses 0.11GRAND TOTAL (One Month) 18.43Working Capital For 3 Months (18.43 × 3) 55.29
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i.e., Rs.0.11 Lakh
Project cost
Sl. No Total Capital Investment Total (Rs. in lakh)
1 Fixed Assets 65.002 Working Capital for 3 Months 55.29
Total 129.29
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Capital Formation
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Cost of Production
Sl. No Items Amt in Rs.(Min)
Amt in Rs.(Max)
1 Cap cost 0.25 ---2 Bottle cost 1.50 2.503 Treatment cost 0.10 0.254 Label cost 0.15 0.255 Carton cost 0.50 ---6 Transportation cost 0.10 0.257 Others (Tapes & Case) 0.25 ---8 Total cost(excluding Labor, Marketing &
Tax)2.85 4.25
Selling cost 10.00
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Profitability Analysis
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Break Even Analysis
Sl. No Fixed Cost (per annum) Amount(Rs. in lakh)
1 Total Depreciation 4.952 Total Interest 18.043 40% Salary and Wages 3.704 40% Utilities and other expenses 2.645 Tax and Insurance fees etc. 0.10
TOTAL 29.43
B.E.P. = Fixed Cost × 100Fixed Cost + Annual Profit
= 29.43 × 10029.43 + 37.10
= 294366.53
= 44.24% (Say 44%)
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SWOT Analysis
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Ratio Analysis
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Cash flow statement for 5 to 10 years
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Depreciation Chart
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Projected Balance Sheet
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Land Man Ratio
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Conclusion
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ADDITIONAL:
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Bibliography
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Questionnaire
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WORD OF THANKS
Towards the end I take the opportunity to pay hearty regards to Mr.Nabajyoti Bharali (MD GEA National College) of my Institute for providing the opportunity to work with such an esteemed organisation.
I express my deep sense of gratitude to all those who patiently explained and clarify me several doubts in the intricate subject, and above all guiding me throughout the internship period. I cherish the enriching learning experiences in CRG Beverages, though for a brief period. I once again thank the CRG Beverages for the invaluable opportunity and experience.
I would like to thank all those reader(s) who will go through this project in future. I welcome any suggestion or comments from the reader(s).
Rupamjyoti Das.
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Research Methodology
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Recommendation
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