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Prof. Bhavesh Parmar (Faculty Member) DBMSPCE,Visnagar
Ramanand Jha Dhara Patel M Kumaran Vedangi Mehta 26 28 04 10
Remote Baby Walker
Being the students of professional courses like M.B.A., our focus is more towards learning the practical aspects of every subject that are being offered so that we can undertake task which are assigned to us in the corporate world with excellence. For that we have been offered various theoretical as well as practical subjects. As per requirement of our subject New Entrepreneurship & Innovation Management we were being assigned the task of preparing a report keeping in mind the theoretical aspects delivered during sessions so as to launch a new product in the market. As part of our subject we have prepared a detailed report on New Product Development. We have selected Baby walker and for this product we have estimated various figures which are of at most importance while starting the company manufacturing baby walkers. Due to this report we have grabbed immense knowledge about various aspects which are to be given due importance while preparing a marketing plan. And we are very sure this report will be of great assistance to us in future also….
Place: Visnagar Date: 01/11/2010
Ramanand Jha, Dhara Patel, M Kumaran, Vedangi Mehta.
Remote Baby Walker
Gratitude is the noble response of one’s soul to kindness or help generously rendered by another and its acknowledgment is a duty and joyance. So it is that we express briefly our debt to those who have made the creation of this project possible.
We thankful to Prof. Bhavesh Parmar, Faculty member of S.P.C.E., Department of Business Management, for giving the guidelines about how to make the project report and helping nicely in preparing a Project Report.
We extend our thankfulness to all friends and all well wishers who had helped in the completion of this project.
Place: Visnagar Date: 01/11/2010
Ramanand Jha, Dhara Patel, M Kumaran, Vedangi Mehta.
Remote Baby Walker
This project is divided into three parts the first parts covers the information about the product. We have selected Baby Walker we have included meaning, uses, market players etc. The second section deals with the explanation about our company Indiashopp. We have also included details about our product such as contents used, raw material requirement etc. The part includes financial analysis of the company for three consecutive years. We have included production for three years, profit & Loss statements, Balance Sheet, Break Even Analysis, etc
To understand the requirements so as to start the business. Understanding the process involved in starting a company dealing in assembling baby walkers. Knowing the Quality standards and Government policies to be followed by such company. Estimating the cost and planning for the company’s requirements accordingly.
Projection of Technical analysis, Demand Analysis, Market analysis etc
Working out estimated financial statements for the company which includes: → Financial statements
Analyzing the key Success factors for our company
2 1. VISNAGAR .3 2. No.5 1.4 1.1 1.3.7 1.2 DEVELOPMENT Idea Generation SWOT Analysis Idea screening Concept Concept Development Positioning Map 17 18 19 21 21 21 Page 5 DBMSPCE.2 2.3 1.11 OVERVIEW OF THE COMPANY Vision Corporate Responsibility Company Profile Brief description about the company About “INDISHOPP” Baby walker Funding Organization Structure Background of the Invention Field of the Invention Discussion of the related art Principal objects of the Invention Summary of the Invention 8 8 8 9 9 10 11 11 11 11 14 14 PAGE NO CHAPTER 2 PROCESS OF NEW PRODUCT 2.9 1.1 2. CONTENTS Preface Acknowledgement Executive Summary Objectives CHAPTER 1 1.6 126.96.36.199 2.1 1.1 2.8 1.3.10 1.Remote Baby Walker Table of Contents SR.
1 2.1 5.4 3.2 3.1 3.5.2 3. VISNAGAR Page 6 .3 3.6 Raw Materials Material Outsourced Packaging Materials Distribution channel CHAPTER 5 FINANCIAL ANALYSIS Cost of the project Estimation of production and sales Profit & Loss account of Indiashopp Projected balance sheet Break-Even Point statement Bibliography 32 33 33 35 27 27 27 27 28 29 29 22 22 23 24 24 24 5.1 3.2 4.2.5 2.4 2.3.4 5.1 2.3 2.5.5 Raw Materials The Assembling process The frame The seat and hood Major players in India Benefits of baby walkers Drawbacks of simple baby walker CHAPTER 4 TECHNICAL ANALYSIS 4.3 4.3 5.2 Concept Testing Marketing Strategy Marketing Mix strategy Business Analysis Estimating total sales Estimating Cost & Profit CHAPTER 3 GENERAL INFORMATION OF BABY WALKER 3.Remote Baby Walker 2.2.2 5.4.5 37 37 40 41 42 44 DBMSPCE.1 4.
Remote Baby Walker CHAPTER 1 OVERVIEW OF THE COMPANY DBMSPCE. VISNAGAR Page 7 .
Ph. kindergarten and corporation present to let children and adult play with fun. Ltd. toy store.26654122 Email: remotebabywalker@indiashopp. We aim to ensure products meet the expectations of quality and safety that clients can reasonably demand of design. IndiaShopp Remote Baby Walker Co.3 COMPANY PROFILE: Name of the Company Year of Incorporation Location of the plant Registered Office IndiaShopp Remote Baby Walker Co. 1. Ajanta Complex. Ltd.No. Ahmedabad.Remote Baby Walker 1. engaging and challenging at the same time. VISNAGAR Page 8 . supermarket. A-106. Panchwati.26654112 Fax079. Promotion is very important for our clients. It inspires consumer purchasing appetency. Gulbai Tekra. Ahmedabad. play patterns and foreseeable misuse. 1. 1st April.2 CORPORATE RESPONSIBILITY We are always looking for long term business cooperate partners in the world. Changodar.079.com DBMSPCE. 2008 Plot 16.1 VISION The purpose and vision of our company is to inspire buyer to explore and challenge their own creative fortune potential. creative. whom used the good idea and let the products sale more mass and faster. Our promotional toys and gifts are distributed through magazine.
VISNAGAR Page 9 . DBMSPCE. Baroda and Rajkot. later the company is planning to go for major expansion plan by increasing its distribution channel to country. It helps to reduce the number accident occurring from child falling downstairs. Its remotes sensing technology safeguard child from being falling down from stairs.Remote Baby Walker 1. It is available in five different features and style. Company is having the registered office at Ahmedabad from where the distribution channel of the company takes place in Ahmedabad itself as well as in Surat. 1. Baroda.e. It is the sole manufacturer of remote baby walker in Gujarat region.4 BRIEF DESCRIPTION ABOUT THE COMPANY: IndiaShopp baby Walker Company is in the business of infant child baby walker manufacturer in India. The company is a new venture and making its presence felt in baby walker market in Gujarat. Ahmedabad. which is at present restricted to major cities of Gujarat i. Surat and Rajkot.5 ABOUT INDIASHOPP BABY WALKER IndiaShopp Baby Walker is basically a walker which is targeted not to a mass segment but to a niche segment initially for infant child between 5 months to 15 months old and after getting popularity it will be launched as a fully fledged in different market of the country.
parents can freely handle the movement of the child. It is available in five different features: Features Remote control Facility Only RC with Shade RC with Bottle RC with locking facility RC with all Price(Rs. 40% of the total capital.7 ORGANIZATION STRUCTURE: DBMSPCE.Remote Baby Walker With the use of IndiaShopp baby walker.6 FUNDING: Promoters Share (Ownership Capital) 60% Commercial Loan 40% IndiaShopp Remote Baby Walker is a private company with 60% promoter’s stake holding. VISNAGAR Page 10 . company is through commercial loan.) 750 850 850 850 1000 1. 1.
Remote Baby Walker Nitin Jain Akshay Patel Harshvardhan Parikh NAME Dhara Patel M Kumaran Vedangi Mehta Ramanand Jha DESIGNATION Chairman Executive Director Executive Director Executive Director Chief Accountant Plant Manager Production Manager CONTACT +91 9529435279 +91 9898192993 +91 9637298291 +91 9428300251 DBMSPCE. VISNAGAR Page 11 .
such as furniture or the like. DBMSPCE. Plastic wheels for the rolling of the walker will be outsources from another company manufacturing raw plastic wheels and even packaging label on the walker as well as the polythene will be outsourced from local industry from nearby areas. A seat is also included so small children can be placed in the walker if desired. and the remote control system includes hand-held or belt-worn controls that are in the possession of an adult so the adult can exert control over movement of the walker. VISNAGAR Page 12 . The sensors on the walker prevent the walker from colliding with objects.8 BACKGROUND OF THE INVENTION: Baby walker includes motor-driven wheels with the motor being connected to sensors on the walker and to a remote control system.Remote Baby Walker 1.
Still further. DBMSPCE. there is a need for a motorized walker. Therefore.1 DISCUSSION OF THE RELATED ART Many parents and adults try to keep a baby entertained by placing the infant in a walker or a baby bouncer. Therefore. the infant may move the walker in a manner that causes a collision with another object. These walkers have been quite successful but have several disadvantages. For example. Some infants are not strong enough to move a walker and others may need instruction on use of a walker. As mentioned above. VISNAGAR Page 13 .9 FIELD OF THE INVENTION The present invention relates to the general art of baby walkers. This defeats some of the purpose of the walker. some infants may move a walker in a manner that causes a collision with another object or on a course that may lead to danger. and wheels. The baby supports itself on the frame and movement of the walker is produced when the baby executes a walking motion. The walker thus supports the infant while the infant learns to walk. and to the particular field of baby walkers having accessories.9. Therefore. such as furniture or the like. the infant may move the walker into an area of danger. unless the infant is under constant supervision. The prior art walkers of which the inventor is aware generally have a frame. These infants may simply sit in the walker until the adult moves the walker. 1. such as near a stairway or the like. there is a need for a baby walker that can be controlled by an adult.Remote Baby Walker 1. which surrounds the baby. unless the movement of the walker is monitored.
It is a main object of the present invention to provide a baby walker that can be controlled by an adult. even if the infant is large enough to comfortably stay in the walker. VISNAGAR Page 14 . objects are achieved by a baby walker that includes motors which are remote controlled and which are also controlled by sensors on the walker. It is another object of the present invention to provide a motorized walker that is adaptable for use with a seat so the walker is versatile. 1. Some infants may be very young or small when a parent or adult wishes to place them in a walker. and other. Therefore. 2. 3. there is a need for a motorized walker that is adaptable for use with a seat so the walker is versatile.Remote Baby Walker there is a need for a motorized walker that includes sensors that are connected to the motor to control movement of the walker.10 PRINCIPAL OBJECTS OF THE INVENTION 1. It is another object of the present invention to provide a motorized walker that includes sensors that are connected to the motor to control movement of the walker. These infants may need support to remain safely in the walker. some parents may feel safer if the infant is somehow comfortably restrained in the walker. Also. It is another object of the present invention to provide a motorized walker. DBMSPCE. It is another object of the present invention to provide a motorized walker that is adaptable for use with a plurality of different remote control units.11 SUMMARY OF THE INVENTION These. 4. 1. 5.
The walker can be easily folded and carried over to any desired place. Using the walker embodying the present invention will permit a baby walker to be controlled by an adult whereby the baby is not likely to move into a dangerous situation. but the remote controls and sensors control movement of the walker so the infant cannot move the walker into a collision or into a dangerous situation without the walker or the person supervising the child being able to exert some control over the movement of the walker to prevent the walker and child from moving into such an undesirable situation.Remote Baby Walker The walker also includes a seat that can be used to support small children. Various remote control units can be used in connection with the walker embodying the present invention to further improve the versatility of the walker. The seat makes the walker embodying the present invention versatile so small children can be placed in the walker and entertained. The motors move wheels on the walker to assist the infant in moving the walker. The walker embodying the present invention also includes sensors on the walker that can control the motor to prevent the baby from colliding with furniture or other objects. The walker also includes shading facility to provide shadow when child is exposed to hot rays of sun and it also includes bottle facility to provide milk to children at time when the child is hungry as well as it also includes locking facility using which the child cannot move to different places. DBMSPCE. VISNAGAR Page 15 .
Remote Baby Walker CHAPTER 2 PROCESS OF NEW PRODUCT DEVELOPMENT DBMSPCE. VISNAGAR Page 16 .
Reason behind this is to overcome the drawback of traditional baby walker. using one too much may even delay her development slightly. DBMSPCE. mouthwash or alcohol. 5. and skull fractures. So we come up with new idea of Remote Baby Walker and decided to go ahead with Remote Baby walker. Reasons are 1.1. IDEA GENERATION Ideas for Remote Baby walker came from interaction with customers. Most injuries are caused by falls when the baby walker tips and the baby is thrown downstairs or crashes into furniture.Remote Baby Walker 2. Baby walkers give babies extra speed (a baby can reach up to one meter per second in one zoom). Walkers won't help your baby learn to walk and in fact. heaters or ovens. VISNAGAR Page 17 . and sit and to play on the floor. We as a Company found out that prevailing baby walkers are full of loopholes and do not guarantee safety of Children. 4. concussions and head injuries. lacerations. A baby needs to roll. It allows her to reach household poisons. in order to reach her developmental milestones. such as perfume. left at a previously safe level. crawl. extra height and access to multiple hazards. Despite adult supervision. group members. such as candles and hot cups of tea. 2. Consumers are also somewhat dissatisfied with it wanted something which can reduce their anxiety regarding their children safety. infants in walkers received injuries such as contusions and abrasions. 6. 3. There is also an increased risk of your baby being burnt by previously inaccessible objects. colleagues and other associates.
Best value of money 4. DBMSPCE. An opportunity to be the first to introduce Remote Baby Walker To take advantage being first in the Indian market. Excellent quality of product 3.Remote Baby Walker 2.1 SWOT ANALYSIS: STRENGTH 1. Price is not affordable for every one 2. Remote sensing technology 2. Other firm may launch similar product with extra features. 2. 3. 4. Increase brand recognition THREAT 1. Potential market growth. VISNAGAR Page 18 . Easy to use WEAKNESS 1.1. Easy to copy the product for competitor OPPORTUNITY 1.
Parents can freely handle the movement of the child c. c. Decreased risk of your baby being burnt by previously inaccessible objects. Remote Baby walker would enable child to be protected against hot sun rays e. Safeguard child from being falling down from stairs b. Its locking facility would lock the baby movement f.2 IDEA SCREENING Promising Idea: . Best quality material d. such as perfume.Remote Baby Walker 2.Remote Baby Walker The idea was reviewed as follows:1) Does the Product meet a need? a. Remote Baby walkers controls speed of the moving walker e. Child can be protected against fire d. such as candles and hot cups of tea. VISNAGAR Page 19 . a. Affordable price 3) Can it be distinctively advertised? DBMSPCE. left at a previously safe level. It would not allow her to reach household poisons. With help of sensor technology in 4 side of walker would enable parent to handle baby movement. Easy to control b. f. mouthwash or alcohol. 2) Would it offer a superior value? Remote baby walker does offer a superior value because it incorporates the following superior value which is not being offer by others in the market.
Because as per our market survey and analysis.000 30. most part of the total investment will come from self and the rest of the investment will come from the loan.00. VISNAGAR Page 20 . But still to make the people aware about the new product. Finance require for above items will come in the following way: a) Loan from Bank b) Self Finance 20. sales growth and profit? New product will deliver the expected sale volume.000 5) Will the new product deliver the expected sales volume. its entry news can be given to newspaper and relevant magazines.Remote Baby Walker Product advertisement is prohibited in the Indian market because of its unsafe functions and occurrence of accident in the bygone era. we are assure of getting good response from the market.00. sales growth and profit Bygone baby walkers do not guaranteed the safety of children and because of this so many accidents were recorded. DBMSPCE. Our product not only offers the safety to child but ensure playful life to child also. Company is also sound in the fair use of technology. 4) Does the company have necessary know how and capital? As the company falls in small scale industry.
2.3.Remote Baby Walker 2.3. VISNAGAR Page 21 .3 CONCEPT 2. POSITIONING MAP PRODUCT POSITIONING MAP Convenience Inconvenience RBW Chikoo rider Expensive Baby Stroller Wonder Walker Inexpensive DBMSPCE.1 CONCEPT DEVELOPMENT A product idea can be turned into several concepts like who will use the product like 1) Who will use the product? • • • • The RBW can be aimed at infants who are 5 to 15 months old Safety to children Reduce anxiety of parents Playful life to children 2) What primary benefit should this product provide? 2.
structure and behavior. the survey conducted by the market research team shows the positive market feasibility of Remote Baby Walker. distribution strategy and marketing budget for the 1st year. Another Method applied by our team.750. The company’s product will be positioned at the adequate price with good quality.000 to 50. The target market for the Remote baby walker is families with children who are 5 to 15 months old. In the second part the company will aim to achieve 12% to 15% of the market with a profit of around 40. The plan consists of three parts. The 2nd part outlines the planned price. 000 to 50. The 1st part describes the target market’s size.000. 2. (10% discount to original price) DBMSPCE. The price to distributors will be Rs.4 MARKETING STRATEGY:We will develop a preliminary strategy plan for introducing the new product into the market. So.675. VISNAGAR Page 22 . We have conducted a market survey of 100 respondents for evaluating the market feasibility of the product.Remote Baby Walker 2. Concept testing entails presenting consumers with an elaborated version of the concept. We as a company will initially try to achieve 10% to 12% of market share with a loss not extending Rs.000. The product will be offered in five different features and will be sold at a retail price of Rs.3 CONCEPT TESTING Concept testing involves presenting the product concept to target consumers and getting their reactions.40. conjoint Analysis indicates that the concept of Remote Baby Walker adds values to the customers’ requirement as it protect their baby from getting injured.3.
Remote Baby Walker The 3rd part of the marketing strategy plan describes the long run sales and profit Goals and marketing mix strategy over time. The budget for marketing research will gradually be reduced proportionately after the 1st year. The product would be available in every small town in coming near future. following marketing strategy will be designed.1 MARKETING MIX STRATEGY: • PRICE:.. news papers and selling product online to customers. 2. Once product becomes known to target audience budget will subsequently decreased as advertising of baby walker is not allowed in India.4. Another promotional tool will be the direct demonstrations to the targeted customers in the various cities. To achieve this return. product quality will continuously be improved overtime through research. VISNAGAR . To achieve the above target.) 750 850 850 850 1000 Features Remote control facility only Remote control with shade facility Remote control with bottle facility Remote control with locking facility Baby walker with all facility • PLACE:- Initially the company is focusing mainly in two tier cities of Gujarat. • PRODUCT:Page 23 DBMSPCE. Baby care etc. The price will be lowered gradually to expand market share and to meet competition. The company intends to win 35% market share and realize after tax return on investment of 12%. • PROMOTION:- The promotion Remote Baby Walker will mainly done through the print media like magazines’ such as Mommy Diaries.It is available in five different features: Price (Rs.
02.Remote Baby Walker The company is planning to introduce Remote Baby Walker with different features such as Remote control Facility Only Remote control Facility with shade facility Remote control Facility with locking facility Remote control Facility with bottle facility Baby walker with all facility 2.2 Estimating Costs and profit MATERIALS OUTSOURCED: • • IndiaShopp will go for procuring the plastic wheel from outside supplier @ 10 Rs per wheel.28. the chances of baby being injured so remote baby walker will prove to be successful product to overcome the drawbacks of traditional baby walker.1 Estimating Total sales • • In India population is increasing at tremendous pace as a result of which the Many retailers are providing traditional baby walker thus increases numbers of infant are also growing with same pace. 188.8.131.52.5 BUSINESS ANALYSIS 2. VISNAGAR Page 24 . • Product sales will get momentum as soon as our product becomes familiar among target audience.70. Estimated sales figure of the product is as follows: Rs.000 so on.800 and Rs. PACKAGING MATERIAL: DBMSPCE. Sensor required for controlling the movement of walker will also be outsourced.
50. the first year we are likely to get very low profit not extending Rs.Remote Baby Walker • IndiaShopp will be procuring poly bag required for packing walker from outside supplier @ Rs 1.000 so on and so forth. we will generate approximate profit of Rs. Rs. Our Company’s product will likely to grab the market rapidly. DBMSPCE. But because of high cost involve in the beginning of the year.50.100.000 but in the following years. PROFIT By looking at market scenario and prevailing products.50 per poly bag. VISNAGAR Page 25 .000.
VISNAGAR Page 26 .Remote Baby Walker CHAPTER 3 GENERAL INFORMATION OF BABY WALKER DBMSPCE.
A powder-coating apparatus works like a large spray-painter. frames and wheels. mechanical sewing machine.2 THE SEAT AND HOOD • The seat and hood are cut from a large swath of material with an overhead cutting apparatus known as a cutting die. screws and/or bolts. • The seat and hood are stitched together on a large.1 RAW MATERIALS The primary materials used in manufacturing a baby walker are aluminum or steel for the folding and holding. The various components of the metal tube are assembled using rivets. 3. to form the components of the holding baby walker. Plastic are than molded in different shapes to prepare the frame for baby walker.Remote Baby Walker 3. VISNAGAR Page 27 . dispersing paint through a pressurized system evenly across the metal tube. The metal holding components are then dipped into an antioxidizing solution that prevents rusting and also helps the paint adhere.2. using a press. The metal tube components are spray-painted using a process known as powder-coating (this is the same process by which automobiles are painted).2 MATERIALS 3. cloth for the seat and/or hood and rubber and plastic for handles. 3.2. The die can cut 10-20 pieces at one time.1 THE FRAME • • • • • Plastic is used you to manufacture the frame of baby walker. DBMSPCE. • • The tube components are pre-heated then coated with a powder resin finish. Stainless Steel or aluminum tubing is bent.
The final products are placed in polybags (plastic bags) and boxed for shipping.Remote Baby Walker • Trim is stitched onto the seat and hood. K. 3. S. Prakash Industries 11. International 10. again using a large. Gulshan Industries DBMSPCE. Ess Aar Products 6. Allied Enterprises 4. The wheels are attached to the assembled frame. mechanical sewing machine. R. Rover Cycles (Regd. Vijay Cycle Mart 9. B.2. New Natraj Industries 2. 3.3 MAJOR PLAYERS IN INDIA 1. Ajani Industries 3. Steel Furniture 7.) 5.3 FINAL PRODUCTION • • • The seat and hood are attached to the assembled frame. Batra Sales Corporation 8. VISNAGAR Page 28 .
Most people believe that when a baby is occupied in his little 'wagon'.Remote Baby Walker 3. that more accidents and injuries happen in baby walkers than with any other form of baby equipment.000 infants injured in walkers.4 BENEFITS OF BABY WALKER 1. 3. That's why Canada has banned the sale of baby walkers. There is also an increased risk of your baby being burnt by previously inaccessible objects. Baby walkers give babies extra speed (a baby can reach up to one meter per second in one zoom). UK data suggests. hospital emergency departments treated 25. Hamper the development of normal walking 3. VISNAGAR Page 29 .a dangerous risk. In 1993. Babies love to be in a walker and also parents love to use the walker because it can keep a fussy baby entertained for more hours. Most of those injuries came from falls down stairs. extra height and access to multiple hazards.5 DRAWBACKS OF SIMPLE BABY WALKER Putting a baby in a walker is like giving a teenager a Ferrari . 2. heaters or ovens. such as candles and hot cups of tea. DBMSPCE. he is safe and can be left unsupervised for short periods. Most injuries are caused by falls when the baby walker tips and the baby is thrown downstairs or crashes into furniture. however.
A baby needs to roll. sit and to play on the floor. Despite adult supervision. left at a previously safe level. using one too much may even delay her development slightly. crawl. mouthwash or alcohol. and skull fractures. such as perfume.Remote Baby Walker It allows her to reach household poisons. lacerations. infants in walkers received injuries such as contusions and abrasions. in order to reach her developmental milestones. concussions and head injuries. DBMSPCE. Walkers won't help your baby learn to walk and in fact. VISNAGAR Page 30 .
VISNAGAR Page 31 .Remote Baby Walker CHAPTER 4 TECHNICAL ANALYSIS DBMSPCE.
The estimated per day plant production would be approximately 18 walkers for meeting the target of monthly capacity of 450 remote baby walker with an estimated 25 working days. we conduct intensive study regarding the best range of materials which would provide optimum comfortability to the babies and kids. These facilities allow us to bring out better quality and durability in our product range. MATERIAL REQUIREMENT Contents Plastic Cloth Stainless steel tube Sensor One Piece requirement 450gm 20 inch 200 gm 4 Contents Plastic Cloth Stainless steel tube Sensor Monthly requirement (18 pcs) 243 kg 280 meter 108 kg 2160 DBMSPCE.1 RAW MATERIALS: As the products being manufactured by us are used by infants. VISNAGAR Page 32 .Remote Baby Walker 4. Our study covers varied sectors from the right selection of textile fabrics to the selection of precision manufactured and flawless range of mechanical components.
All materials / components are regularly tested for strength & resistance to deformation at our testing facility for compliance to childcare standards. 4.Remote Baby Walker RAW MATERIAL PRICE PER KG Contents Plastic Cloth Stainless steel/Aluminum tube Sensor Amount Rs 150/kg Rs 70/meter Rs 185/kg Rs 45/piece QUALITY TESTS Every product offered by us undergoes scheduled tests which assure us of complete safety and comfortability of the baby when our product is in use.3 PACKAGING MATERIAL: • IndiaShopp will be procuring poly bag required for packing walker from outside supplier @ Rs 1. The parts which are used in the making of our infant products are made to undergo physical endurance tests.75 per piece 4. DBMSPCE.2 MATERIALS OUTSOURCED: • • IndiaShopp will go for procuring the plastic wheel from outside supplier @ 10 Rs per wheel IndiaShopp will also procure choo-choo horn from other suppliers @ Rs. VISNAGAR Page 33 .1.50 per poly bag.
Electricity and required material easily available Labor available at low cost 4.5 INFRASTRUCTURE Our factory area is spread over 2000 sq.4 LOCATION AND SITE: Plot Area Cost of the land Address : : : 2. feet 25. for selecting the plant location. functionality and comfortability DBMSPCE. Changodar. ADVANTAGE: Easy transportation Cost of land also plays a vital factor.Remote Baby Walker 4. safety. Ahmedabad.000 Rs Plot 16. VISNAGAR Page 34 . 00. ft with developed infrastructure facilities around.000 sq. Further our team of experienced professionals also allows us to regularly upgrade our products in terms of styling. All our processes are conducted in-house giving us an advantage in terms of Quality Control & Timely Deliveries.
6 DISTRIBUTION CHANNEL: DEALER RETAILER CONSUMER The distribution channel of the company plays a vital role as the product is new to the market and it is aimed at initially targeting the small babies and those parents who want safety of their child while engaged in other activities. Assembling of remote baby walker will be done in five different features which include only remote system in it. DBMSPCE. VISNAGAR Page 35 . remote baby walker with locking facility and last but not the least includes all the features and will be initially stored at the main office in Ahmedabad and dealers will be used for transferring final products to the market to local retailers as well in big malls from their reaching to end users or customers. remote baby walker with bottle holding facility. remote baby walker with shade facility.Remote Baby Walker 4.
VISNAGAR Page 36 .Remote Baby Walker CHAPTER 5 FINANCIAL ANALYSIS DBMSPCE.
ft @ Rs. Particular 1 Installed capacity (No.400 4320 3240000 *(Considering only baby walker with remote facility) LONG TERM FUNDS DBMSPCE. ft @ 1100 Internal Infrastructure Free Land (175 sq.400 2000 1500000 2009-10 450 25 1 18(450/25) 5. ft @ 1100 Rs per sq. ft @ 1100 Rs. ft Boundary wall & Gate is 25 sq. ft Warehousing is 300 sq.2 ESTIMATION OF PRODUCTION & SALES* Sr no.a 2008-09 450 25 1 18(450/25) 5. ft (1100 Rs per sq.400 4050 3037500 2010-11 450 25 1 18(450/25) 5. ft) Corporate office 500sq. of walkers per month) 2 No of Working days 3 No of Shifts 4 Estimated Production per day (qty) 5 Estimated Annual Production (qty) 6 Sales (qty) 7 Revenue (Rs) p.1 COST OF THE PROJECTS: Land & Building: Sr no 1 2 3 4 5 6 Particular Work area is 1000 sq. VISNAGAR Page 37 .Remote Baby Walker 5.1100 ) Total Cost (Rs) 1100000 550000 330000 27500 22000 470500 2500000 5. Per sq.
00.m.000 Page 38 DBMSPCE.) 30. 30000) 18000 7200 2880 Total 216000 185400 163260 SALARY Sr.000 INTEREST PAYABLE 4 YEARS: Year SIDBI TOTAL 1 225000 225000 2 199688 199688 3 177223 177223 4 157285 157285 (* Assuming that 10% of the amount invented is repaid every year) DEPRECIATION FOR 5 YEARS Year (End) Building (Rs.25% Self Funding Cost (Rs. no.) 20. VISNAGAR .000 p. 1980000) 1 198000 2 178200 3 160380 (Depreciation is as per WDV method) Rates: Building: 10% Computer: 60% (According to the depreciation rate in the assessment year 201011) Computer (Rs. each Cost (Rs.Remote Baby Walker Sr no 1 2 Particulars 10 year loan from SIDBI @ 11. 1 Particular 2 Marketing Executives @ 15.000 30.00.
m.Remote Baby Walker 2 3 1 Watchman @ 2000 p.m. VISNAGAR Page 39 .000 WAGES: PARTICULARS 9 Unskilled Workers (Rs. 13500 (450*30) P. TOTAL 2000 4000 36. 30/piece) Rs.M DBMSPCE. 1 Supervisor @ 4000 p.
Stationary .Remote Baby Walker 5.Lease Payment Staff Salary Packaging and Labeling Selling Expenses Distribution expenses (Fuel Exp.Electricity Bill . VISNAGAR Page 40 .Telephone Bill .) Sales Tax (10%) Total(2) PBDIT (1-2) Interest Depreciation Total (Interest Depreciation) Loss /Profit Tax (30%) Profit 60000 36000 2000 75000 432000 54000 14000 5400 150000 2202700 512300 225000 216000 + 441000 71300 21390 49910 2011-12 3037500 1012500 1215000 2835000 2012-13 3240000 810000 1012500 3037500 1212300 162000 1212300 162000 70000 42000 1000 80000 432000 54000 10000 5550 303750 2372600 462400 199688 185400 385088 77312 23194 54118 65000 45000 3000 85000 432000 54000 6000 5750 324000 2394050 643450 177223 163260 340483 302967 90890 212077 DBMSPCE.3 PROFIT AND LOSS ACCOUNT OF INDIASHOPP PARTICULARS 2010-11 Sales 1500000 Add: Closing Stock: 1215000 Finished Goods Less: Opening Stock 0 Total (1) 2715000 COST OF PRODUCTION Purchases of Raw 1212300 material Wages 162000 ADNINISTRATIVE AND SELLING EXP Administrative Expenses .
4 PROJECTED BALANCE SHEET Particulars SOURCES OF FUNDS Owners Equity Loan Funds Profit/ Loss Interest on loan Total Liabilities Fixed Assets Building Computer Current Assets Finished Goods Cash in hand Inventories Debtors Closing Stock Total Assets BALANCE 2010-11 3000000 2000000 49910 225000 5274910 2011-12 3000000 1881829 54118 199688 5135635 2012-13 3000000 1604609 212077 177223 4993909 1782000 12000 1603800 4800 1443420 1920 1215000 713410 33750 303750 1215000 5274910 0 1012500 1164535 50625 286875 1012500 5135635 0 810000 1591069 67500 270000 810000 4993909 0 Debtors include 90%.Remote Baby Walker 5. VISNAGAR Page 41 . 85% and 80% of debt from distributors respectively DBMSPCE.
= ------------------------------------1500000– 184000 * 1500000 Rs. = ------------------------------------SALES – VARIABLE COST * SALES Fixed cost includes fixed electricity bill.178/- DBMSPCE. electricity and telephone bill. distribution expenses.P. lease payment. It can be achieved by applying the formula given below. It is the main objective of any business to achieve the break-even point and then try to achieve more profit by increasing the sales of the products. salary.E. Variable cost includes selling expenses. stationary. packaging and labeling.76. telephone bill.5 BREAK-EVEN POINT STATEMENT Break Even analysis is very useful in any business to know the breakeven point that is the point at which the firm has neither loss nor profit. 23.Remote Baby Walker 5.P. FIXED COST B. VISNAGAR Page 42 . wages and purchase of raw material.E. 2084700 B. depreciation.
Q = ------------------------------------SALES – VARIABLE COST 2084700 B.E.Remote Baby Walker FIXED COST B. VISNAGAR Page 43 .E.Q = ------------------------------------(1500000/450) – (184000/450) Break Even Quantity = 713 Units DBMSPCE.
VISNAGAR Page 44 .asp www.1000ventures.smallindustryindia.html www.indiamart.html DBMSPCE.newbornbabyzone.com/policies/iip.sidbi.com/business_guide/crosscuttings/learning.com/baby-products/is-it-safe-to-use-a-baby-walker/ www.htm www.in/interest1.Remote Baby Walker BIBLIOGRAPHY Websites: www.com/impcat/baby-walkers.dir.
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