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Chapter 1 (1)

Chapter 1 (1)

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10/30/2012

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Sections

  • CHAPTER 1
  • INTRODUCTION
  • INDUSTRY PROFILE
  • COMPANY PROFILE
  • CHAPTER 2
  • RESEARCH METHODOLOGY
  • Presentation and Analysis of data and Interpretation
  • Recommendations
  • CONCLUSION
  • Bibliography
  • ANNEXURE 1

CHAPTER 1 INTRODUCTION

PROJECT APPRAISAL Every organisation has to examine the viability of each project before it provides financial assistance. It has to ensure that the project will generate sufficient funds on the resources invested in it. With the opening of new factory outlet, the study of viability of a project has become more vital for financing a project. Project appraisal the process of critical evaluation of all the six faces of the project appraisal namely: 1. Technical analysis 2. Financial analysis 3. Legal analysis 4. Market analysis 5. Management appraisal
6. Ecological appraisal.

1 Technical Analysis: Technical analysis of a project is essential to ensure that necessary physical facilities required for production are available and the best possible alternative is selected to procure them. Technical analysis considers following aspects. o Manufacturing process/technology o Product mix o Plant capacity 1

o Location and site o Machineries and equipments o Plant layout o Work schedule o Structure and civil works. Raw materials: The potential availability of raw materials cost of collection and quality of raw materials. Utilities (Power, Water, Fuel, etc): These are essential to run a company. The availability of power, water, fuel, etc. should be considered whether sufficient utilities are available or not. Manufacturing process/technology: The selection of manufacturing process/technology depends on quality of the product required, its end use, latest developments and principal inputs. Product Mix: Product mix is dependent on market requirements. Product mix holds quality, performance, or innovative features. While planning the production facilities of the firm, some flexibility with respect to the product mix mist is sought. Plant capacity: Plant capacity refers to the volume of number of units that can be manufactured during a given period. The following factors have an influence on the plant capacity. o Technology requirement o Input constraints o Investment costs o Market conditions o Resources of the firm o Government policies 2

Location and site: Location refers to a fairly broad area like a city, and industrial zone, or a coastal area. Site refers to a specific piece if land where the project would be set up. Location of the project depends on the land availability of raw materials, market, labor, water, power, effluent disposal, good infrastructure, communication facilities etc. Procurement of plant and machinery: For procuring the plant and machinery, orders with different reputed machinery suppliers are on turnkey basis. The factors to be considered in selecting the suppliers of plant and machinery are the quality of machinery, the level of technology sophistication, the expected delivery schedules, and the required performance guarantees. Plant layout: Should consider factors as flows of materials, storage, inter linked storage yards, utility service systems, future expansion alternatives, disposal of industrial effluent, etc. Work schedule: The purpose of work schedule is: o To anticipate problems likely to arise during the installation phases and suggest possible solutions. o To develop a plan of operations covering the initial period. o To establish the phasing of investments taking into accounts the availability of finance. Civil work o Site preparation and development: o Cost of land o Legal charges for registration o Cost of levelling o Cost of roads formation

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guarantees and other legal legalities with respect to the regulations of the government will be analysed and this creates basis for further processes for the financial assistance. 2 Legal Analysis: The collateral properties.Building and structures: o Main factory buildings o Other civil works for auxiliary services o Administrative buildings o Quality control laboratory and R&D building o Go downs and drying yards o Security and time office o Pump and pump house o Compound wall/fencing etc o Sump tank and overhead tank o Cost of building electrification. o Capital cost of projects and sources of finance 4 . water supply. 3 Financial Analysis: Financial appraisal seeks to ascertain whether the proposed project will be functionally viable in the sense of being able to meet the burden of servicing debt and whether the proposed project will satisfy the return/expectations of those who provide funds Financial appraisal involves the following terms. sanitary fittings etc.

the preparation of cash flow and profitability estimates will be futile exercise because the amount of depreciation. Realistic estimation of capital cost of a project is necessary not only in the interest of entrepreneurs but also in the interest of financial institutions if a loan is taken. if any.o Financial projections-Cash flow and profitability estimates o Ratio analysis o Breakeven point o Discounted cash flow techniques-net present value and internal rate of return. But such an undertaking does not have practical meaning. Details of the capital cost of the project and methods of appraisal: Items to be included:  Land and site development  Building and civil works 5 . Over estimation of the cost of the project is also equally bad as under estimation. An entrepreneur has to tie up the resources according to the estimates of the cost of the project. If there is an overrun in the cost of the project. which will lead to further overrun in the capital cost. interest and dividend will change with the change in capital cost of the project. the entrepreneur may find it difficult to arrange for additional resources and it may delay the implementation of the project. Capital cost Estimation of the capital cost of a project provides the basic information to decide its pattern of financing and profitability. Many a times an entrepreneur is not in a position to bring additional resources to complete the project and safeguard the money already invested in the project. If the cost of the project is not estimated correctly. Sometimes Financial institutions and banks are taking an undertaking from entrepreneurs to meet the cost of overrun. If the cost of a project is over estimated the organizations have to make unnecessarily higher commitments and promoters may divert resources for other purposes. in the implementation of the project.

finished well and debtors should be decided keeping in view of production requirements. Plant and machinery o Imported machinery o Indigenous machinery  Engineering and consultancy fee  Miscellaneous fixed assets  Preliminary and pre-operative expenses  Provision for contingencies Estimate of working capital margin After the acquisition of fixed assets that unit has to acquire the current assets to run the wheels of the industry-working capital is required for acquiring current assets and timely arrangements shall be made for adequate working capital to start working for the unit immediately after the implementation. consumable stores. The level of raw materials. Units working on job order basis require very little working capital whereas solvent extraction plants. goods in process. fabrication units where high level of inventory has to be maintained and in respect of imported raw material huge working capital is required. if probability estimates of first year indicate cash loss. Sources of finance 6 . Calculate total requirement of working capital on the basis of expected production in the first year. process time and practice prevailing in the industry. 25% of the total working requirements should be financed by long term resources and included in the capital cost of project. Requirements of working capital differ widely from order placed. take working capital requirement on the basis of production for second or third year when the project is likely to generate profit. The cost of project should include adequate margin for working capital depending on the nature of activity.

The company must give a bright picture of his project to enable him to get finance from the bank or financial institutions. A project can be financed by one of more than of the following sources. It is the duty of the appraising officer to verify and analyze information given to the banker. Water. (estimates of working results) cash flow statements and projected balance sheets. the company have to decide the pattern of financing the capital cost during construction period. o Sales realizations o Raw materials and consumable stores o Utilities (power. sources of finance and various assumptions of profitability estimates. Financial projections Financial projections include profitability estimates. Profitability estimates Profitability estimates are estimates of expected sales realizations and expenses to be incurred by the unit. They are inter-related and prepared on the basis of cost. Excess of sales realizations over expense indicates the expected profit of the unit. Fuel. subsidy or development loans/sales tax But at Aditya Brila Aluminium Gallery it has been financed by a loan taken by lic India. etc. Various terms included in profitability estimates can be verified according to the checklist given below. o Issue of ordinary/preference shares o Issue of secured debentures o Issue of convertible debentures and bonds o Loans.) o Repairs and maintenance 7 . Verification of profitability estimates is highly essential for the proper appraisal of a term loan proposal.After assessing the capital cost of the project.

Cash flow estimates Cash flow estimates are prepared to ensure that the unit will generate necessary cash with it and will not face liquidity problem. o Depreciation o Administrative expenses o Selling expenses o Interest on term loan. current assets. The difference between sources and uses of funds indicates the net cash surplus or deficit arising out of movement of funds in that year. sundry creditors. Insurance. Cumulative surplus shown in profitability estimates represents the position of reserves at the end of each year. which is already written off from the expected profits of the units. The cash flow estimates include sources of funds and their disposition (use). bank borrowings. cash flow estimates are necessary for the construction period also to ensure requirements of the projects. While profitability estimates are prepared only from the tear in which the unit is likely to commence production. Closing balance shown in cash flow estimates represents the position of cash and bank balance at the end of each year. Projected balance sheets Projected balance sheets are prepared on the basis of profitability estimates and cash flow estimates. term loans. etc. etc. is ascertained at the end of each year according to the movement shown in cash flow and profitability estimates. Ratio analyses Ratio analysis is a powerful tool of financial analyses. A ratio is defined as “the indicated quotient of two mathematical expressions”.o Wages and salaries o Rent. The relationship between two 8 . Preliminary expenses are taken after deducting the amount. The position of share capital.

accounting figures expressed mathematically is known as a financial ratio. profits. Many ratios can be calculated to study the working of the unit. etc do not give much information if each figure is studied in isolation. ii. Ratio should be calculated from the figures of balance sheets to study past record and figures of financial projections to study the future. iii. Ratio indicates the relationship between two or more than two variables. iii. LOAN SAFETY RATIO i. Capital employed to value of output/sales Capital employed to net value added Investment per worker Productivity per worker C. Many important items like sales. . Percentage of raw material to value of output Percentage of wages and salaries to value of output Percentage of interest to value of output 9 . Ratios are useful for comparative study of various units and also of various years working of the same unit. Following ratios are used in Aditya Brila Aluminum Gallery A. Debt-enquiry ratio Current ratio Debt-service coverage ratio Margin on security B. iv. net profit debt. iv. ii. iii. PRODUCTIVE RATIO i. equity current assets. Ratio can be calculated for the past record as well as for the future. current liabilities. PROFITABLE RATIO i. It can be undertaken by analyzing their financial projection. ii.

Margin on Security 10 . LOAN SAFETY RATIO i. The current ratio represents a margin of safety that is a “cushion” of protection for creditors. This relationship describing the lender contribution for each rupee of the owner’s contribution is called debt-enquiry ratio can be computed as follows: Debt-equity ratio = Total Debts Total equity ii. Current ratio (Current Assets to Current Liabilities The current ratio is a measure of the firm’s short term solvency. The formula calculating this ratio is as under: = Profit after tax+Depreciation+Interest on term and differed credits Installments+Interest on term borrowings and deferred credit iv. Percentage of operating profit to sales A. Debt-equity ratio (Term liabilities to owned funds) This ratio indicates the relationship between term liabilities and owned funds and helps in assessing the capital gearing. the greater the margin of safety. Current ratio = Current assets Current liabilities iii. It indicates the availability of currency assets in rupee for every one rupee of current liability.iv. Debt Service Coverage Ratio (DSCR) This ratio indicates the capacity of the unit to repay term loan interest there on. The higher the current ratio.

start-up cost 3. which are to be written off in ten years. Similarly. Margin money for working cap 2. Proposed fixed assets to be created by the project can be ascertained by deducting following terms from the estimated capital cost of the project. Preliminary expenses. Estimated cash loss.Term loans are generally sanctioned against the security of fixed assets. The margin on security can be calculated using the formula to express it as percentage to total assets. 4. PRODUCTIVE RATIO Capital employed to output/sales value It indicates the requirements of the capital for production Capital employed to value of output/sales = Capital employed Value of output/ 11 . proposed term loans are added to existing term loans if both have par pass charge on fixed assets. fixed assets to be created for implementation of the project are added to the present net fixed assets (gross fixed assets – depreciation). 1. B. In the case of new units. The excess of fixed assets over term loans provides margin on security for term loans. Margin Liabilities Value of fixed assets on security =Value of fixed assets-Term loan In case of existing units. if it forms a part of the project cost.

spares and any other direct material and depreciation. stores. Capital employed to net value added = Capital employed Net value added Net value added. PROFITABILITY RATIOS i. consumables. value of output represents the expected net sales realization. Percentage of raw material to value of output = Raw materials X 100 Value of output 12 . Capital employed to net value added It indicates the requirement of capital for increasing the national income. If no adjustments are made for opening and closing stocks in financial projection. Net value added represents net increase in national income because all direct material inputs and depreciation are deducted from value of output. power. Percentage of raw material to value of output Capital employed Number of workers and salaried employers This indicates the comparative importance of raw material to value of output. Investment per worker It indicates the amount of capital required employing one person Investment per worker = A. means value of output minus cost of raw materials. fuels. water.Sales Capital employed includes: a) Gross fixed assets b) Working capital required Value of output/sales includes net sales realization (net of excise duty and returns) plus the value of closing stocks of finished goods and work-in-progress minus value of opening stock of finished goods and work-in-progress.

Percentage of operating profits in sales: This ratio indicates the profitability of sales. the 13 . Operating profit is taken before tax but after all other expenses. Sales should also have a margin of profit. Internal Rate of Return A project should earn sufficient return.Raw material consumed includes consumption of raw materials Chemicals and bought out components. Percentage of salaries and wages to value of output = Salaries and wages X 100 Value of output iii. which should be at least equal to the cost of the funds invested in it. If many alternative proposals are available for the investment. Mere increase in sales is not sufficient. Net present value 2. Discounted cash flow techniques 1. = Operating profit Sales Operating profit means profit after interest and depreciation but before tax. ii. Percentage of interest to value of output = Interest X 100 Value of output iv.

Average Rate of Return method 3. The length of time required for total cash inflow to recover the original investment is called the pay back period. 1. Average profit is divided by original investment to get the rate of return on them. if any. Internal Rate of Return Pay-back period method The objective of this method is to ascertain the period required for recovering entire investment made in a project. Pay-back Period = Initial investment Annual cash flow Average Rate of Return Method Under this method. Net present value method 4. until it equals the original investment. Average rate of return = Average income Average investment Time Value of Money Discounting Techniques: 14 .investor should make a comparative study of return of various purposes. The cash inflow accumulated year by year. Following methods have been suggested for evaluating the profitability of industrial project. Payback method 2. Average investment of one year can be ascertained by taking the average of opening and closing book value of the investment in the year. the entire life of a project is taken into account. less income tax payable during the year. The grand average of such average investments of all the years is obtained to know the average investment of the project. unlike the payback period. The cash flow includes new operating profit after adding back to it the amount of depreciation on fixed assets and amortization of intangible assets. An average of the annual net operating profits (after depreciation) for the entire life of the project is taken and rate of return on original investment and average investment is calculated.

time adjusted rate of return and so on. the value of money invested in future is not equivalent to the value of money invested today. The internal rate of return can be defined as that rate which equates the present value of cash inflow with present value of cash out flow of an investment. Internal Rate of Return Method Internal rate of returns (IRR) method is another discounted cash flow technique which takes into account the magnitude and timing of cash flows. A positive NPV at the cut off rate indicates that the investments in the project gives profit greater than the marginal investment rate or cost o capital and hence proposal can be accepted. In other words. It correctly postulated that cash flow arising at different time periods differ in value and are comparable only when equivalent present values are found. It is one of the discounted cash flow techniques explicitly recognizing the time value of money. Other terms used to describe the IRR method are yield of and investment. marginal efficiency of capital rate of return over cost. But in fact. Profitability Index (PI) 15 . Net Present Value The NPV method is the classic economic method of evaluating the investment proposals. it is the rate at which the net present value of the investment is zero.Pay back method and average rate of return method do not consider the time value of money. The initial amount incurred for acquisition of assets to implement a project and income received from the project in future is given equal importance the above methods.

It is the present value of cash inflows. Profitability index = PV of the cash inflows Initial cash outlay 4. Collection of secondary information: 16 .Another method of evaluating the investment proposal is the benefit cost ratio or profitability index (PI). Steps in the market analysis: o Situation analysis and specification of objectives o Collection of secondary information o Conduct of market survey o Characterization of the market o Demand forecasting o Market planning Situational and specification of objectives: This involves through understanding of the current factors and future changes that may occur in the aluminum business and in the manufacture of the product for the selected project to be success. Market and Demand Analysis: The step in project analysis is to estimate the potential size of the market for the product proposed to be manufactured (or service planned to be offered) and get idea about the market share that is likely to be manufactured. at the required rate of returns to the initial cash outflows of the investment.

o Effective demand in the past and the present o Break down of demand o Price o Methods of distribution o Consumers o Supply and competition Demand forecasting: The demand for the product may be forecasted either through the subjective or through the objective methods 17 .g. The important thing to be remembered is to have a clear idea about the target population. websites and government organization. The second type of the market survey is through questionnaire in which a few questions are asked and the views are elicited. newspapers. Data from IMRB. Census of India.This is the data collected for some other purpose but may be useful in the current analysis of the market for the product. E. magazines. This involves data from journals. Characterization of the product: Based on the information gathered from the secondary and primary sources the characteristics may be analyzed in terms of the following factors or the character. RBI bulletins Conducting market survey: The market survey basically is a sample survey in which a sample of the product is given to the customer and his views are elicited based on which the success of the product is determined.

Subjective methods Jury method Delphi method Objective methods Census method Statistical survey Analysis based on secondary data Chain Command Cause and effect model Economical model Lead indicator Market planning: Market planning is most important aspect in market demand analysis. It is said that a second grade project in the hands of first grade management is better than a first grade project in the hands of second grade management. which is considered technically feasible. A suitable market plan should be developed to reach a desired level of market penetration. 18 . may run into difficulties if sound and efficient management do not back it. However. educational background and enthusiasm. Proper evaluation of management is an essential part of project appraisal. It should cover distribution. Evaluation of management is an art and no formula available. 5 Management Appraisals: In a project appraisal. A project. However it is often difficult to form a judgment regarding future management as the time of project appraisal. pricing. economically viable and financially sound. appraisal of management is very important aspect. The person behind the project is very important. the projects appraiser should consider the experience of the promoter. promotion. and service.

6 Ecological Analysis: In recent years. environmental concerns have assumed a great deal of significance and rightly so. 19 . Aluminum gallery is a very eco friendly organization it reuse the products. Ecological analysis should be done particularly for major projects. which have significant ecological implications like power plants and irrigation schemes and environmental polluting industries.

transport. the industries that require aluminum most include power (44%). the demand is growing gradually. In India. transportation (10-12%). aluminum usage in buildings has grown tremendously.5 million tons. approximately 3 per cent of the world market of 29. The Indian aluminum market in India was 800. In India. Also it retains its finish and hence looks as good as new for years. Background Over the years aluminum has emerged as an ideal substitute for conventional building materials like wood or steel. light in weight and corrosion resistant. building and construction. consumer durables and packaging.000 tons in 2003-04. construction (17%) and packaging etc. Moreover it’s environmental friendly and enjoys high value in the market. particularly for building and construction. Worldwide. the Indian aluminum industry is also growing at an enviable pace. The major consuming segments in India are electrical transmission conductors. Today it is emerging as one of the most preferred material for home and industry as it is strong. the production of aluminum in India is currently outpacing the demand. With the growing demand of aluminum in India.INDUSTRY PROFILE INTRODUCTION Aluminum Industry in India is a highly concentrated industry with the top 5 companies constituting the majority of the country's production. The market for aluminum in India. has not grown to the desired level. the per capita consumption of aluminum is barely 1 kg compared with the world average of 5 kg and the western world average of 20 kg. This is largely because 20 . consumer durables. In fact. Though India's per capita consumption of aluminum stands too low (under 1 kg) comparing to the per capita consumptions of other countries like US & Europe (range from 25 to 30 kgs).

and transportation etc. The consumption reached at 1. India is also a huge reservoir of Bauxite with a Bauxite reserve of 3 billion tones. The consumption of aluminum in India is dominated by the industries like power. The Consumption After a stagnant consumption of primary aluminum in India from the end of 1990s to 2002 (when the consumptions were between 500 – 600 KT). infrastructure.7 million tones.080 KT in 2006. it started rising sharply since 2002.building and construction products based on aluminum are fabricated by small and medium scale manufacturers. Following are the major players in the Indian aluminum industry: • • • • • Hindustan Aluminum Company (HINDALCO) National Aluminum Company (NALCO) Bharat Aluminum Company (BALCO) MALCO INDAL Hindalco Industries 21 . accounting almost 5% of the total aluminum production in the world. Aluminum Production in India India is world's fifth largest aluminum producer with an aluminum production competence of around 2. The Major Players The Indian aluminum industry is dominated by four or five companies that constitute the majority of India's aluminum production. who play only the price variable and have felt compelled to supply lower-end products which do not build markets.

It was set up in 1958. Today.675 The Company Hindalco Industries (commissioned in 1962) has its facility for Aluminum at Renukoot in eastern U. transportation and building / construction. The various Aluminum products manufactured by the Hindalco Industries are: • • • • • Primary Aluminum Alumina Chemicals Wire Rods Rolled Products Alloy Wheels Growable markets: Hindalco has identified segments (and sub-segments) that are 'growable' through its market driving efforts.779 million. What is changing the Aluminum Fabrication industry: • • • • Entry of foreign players Widespread use of Structural glazing & Composite panels Exponential growth of the organized real estate companies offering quality homes Use of designed / imported window systems and hardware 22 . the company is a leader in the industry. The net operating and sales revenues of the Hindalco Industries Company had amounted to Rs 42.96 billion and it has around 13. For discerning consumers keen on investing in lifestyle products to lend a refreshingly elegant look to their ambience. aluminum is fast emerging as a real material substitute. 46. the company has grown to become India's biggest producer of integrated Aluminum and ranks top in the global sector as the producer of low cost top quartile. The Hindalco Industries Ltd's market value is US$ 2.P.737 million in 2005-2006. Its businesses include the manufacture of Copper and Aluminum and in both. wheels. These are kitchen foils. is under the Aditya Birla Group. while the next year it stood at Rs.

marketing and promotion opportunities with quality manufacturers.• • No. of fabricators with Excise registration A growing divide between premium and low priced products – on features.The Aluminum Gallery. To promote and market the Aluminum products they have set up a contemporary retail gallery at Richmond town. 23 . quality & service COMPANY PROFILE Nautilus interior solutions The Bangalore based interior firm with 12 years experience in interior solutions has taken up the rights of The Aluminum gallery in Karnataka and have freedom to promote in all the markets which don’t have the presence of a franchisee. With the launch of this innovative concept. for the leading builders and architects in Karnataka and abroad. There is also a back end office for designing and administration of the firm. The Aluminum Gallery is the first of its kind in the commodity business. The firm has been partnered by the founder of Nautilus interior solutions Mr Syed Shuaib . Hindalco aims to boost its sales by giving its customers a hands-on-experience while shopping for their aluminum needs. Nautilus interior solutions have implemented hundreds of projects in the past. For the firm it was a natural progression after seeing the opportunity and consumer shift in the market. Hindaclo has always been in the forefront of promoting the use of aluminum in everyday life which is why Hindlaco has chosen to make a range of quality of products available under one single roof . Aluminum gallery: This is an initiative by Hindalco to promote the customers' products and create new markets through pro-active partnerships. The Company also hopes that the gallery will lead to co-branding.

Fazards. • • • • JVS Werner: Aluminium Ladders Infina engineering: Trivison hoardings Mosquito mesh: Fine fit Southern Aluminium & Glazing: Architectural glazing Alutec The leading brand from Italy and a highly reputed manufacturer of window doors and accessories. In India critical components are sourced from Italy and carefully combined with high quality aluminum extrusions from Hindalco. comprising quality Aluminum extruded profiles. 24 . Alutec invented “R’ system – Italy’s best know and widely used architectural system. constant quality control and rigorous testing in Alutec in-house laboratories enable consistent high quality standards. Louvers. which are both stylish and long lasting. Brands showcased at the moment: • • Alutec windows and doors Hunter Douglas – False ceilings.The Aluminum Gallery offers builders and architects a unique opportunity to explore new dimensions for design and impart to their creations. From raw material through production. offers an extensive range of high quality windows and doors in India. accessories and gaskets. Truss. India’s largest vertically integrated aluminum company. Cladding and other architectural products • Hindalco Everest: Aluminium roofing sheets. Novellus Everlast is also introducing premium products. The aluminum extrusions are from Hindalco. With its tie up with a German brand. It is well known for its innovative designs and extensive range of standard and customized architectural products.

hierarchy levels. MISSION STATEMENTS To relentlessly pursue the creation of superior shareholder value by exceeding customer expectation profitable. Seamlessness Thinking and working together across functional silos. businesses and geographies. PRODUCT PROFILE Aluminum Windows and doors The window and door market is heavily dependent on both the house building and the repair and maintenance markets. Speed Responding to stakeholder with a sense of urgency. with a passion for excellence. unleashing employee potential and being a responsible corporate citizen adhering to our values.Alutec. global in size and reach. Although modern double-glazed windows and doors were first developed in substantial volumes for the replacement market. known for its innovation and cutting edge technology. VALUES Integrity Honesty in every action Commitment Doing whatever it takes to deliver. has been launching a range of products every year to meet the demands of the market. VISION STATEMENT To be a premium aluminums major. as promised Passion Missionary zeal arising out of an emotional engagement with work. they are now also 25 .

where offices and retail projects have a high demand for windows. ALUMINUM LADDER These ladders are manufactured from high tensile aluminum alloy and are ideal for domestic as well as industrial and electrical maintenance. In addition to world class quality. is leaders when comes to aluminum roofing solutions in India. A versatile serviceable 26 . you can also enjoy infinite benefits when you switch to everlasting aluminum roofing sheets. aluminum has fast emerged as the substitute for conventional roofing material for home and industry.widely sold to the new build market. Light in weight. Its has become a popular product in the corporate buildings EVERLASTINS ALUMIUNM ROOFING SHEETS Over the years. non-skid rubber shoes. easy to handle. Types of doors and windows Windows – Casement Top link Sliding Tilt and Turn Sialwood (wood & aluminum) Sliding and Folding DoorsCasement Sliding Sliding and Folding Cladding Sheets STRUCTURAL GLAZING While large 'energy saver' buildings have aluminum structures holding up glass. With special features like steps with non-slip ribbed surface. elegant in look and highly economical in the long run. Everlasting aluminum roofing sheets from hindalco industry limited. But today the important business has to be won in the commercial sector.

expenses and maintenance are resolved by the use of False Ceiling boards or Tiles. All decision is taken by him or has been consulted by him. FALSING CEILINGS False Ceilings in India are a relatively new concept but definitely a huge potential market. administration. These ladders are highly compact and space saver. rigid. designed with specific requirements. There is a designing team which consists of expert designers whose bring out innovative designs Marketing and sales team works efficiently with growing competition and demand. have 2 Executive Directors (Marketing and Technical) & 4 General Managers (Designers. Fabricators. DEPARTMENTAL STUDY The CEO and the Managing Director: Mr Syed Shuaib The Managing Director. The usual problems pertaining to dirt.multipurpose ladder. The technical department consists of 3 fabricators under each fabricator they are 10 – 20 labors. To assist the Managing Director. sturdy and slim in look with exceptionally strong structure. headed by the marketing executive. hygiene factor. 27 . The finance department is headed by the senior accountant of the company. a full time Executive takes care of day-to-day administration of the organization. sales and technical).

To motivate and involve employees to achieve the set organizational growth targets. AREA OF OPERATION Aditya Brila The Aluminum Gallery has its outlet all over India and its head office at Mumbai. QUALITY SYSTEM PROCEDUERS • • • To provide quality products and related services on a continuous basis.There are 2 legal advisor of the company who take care of the documentation and legal formalities of the company. To continually upgrade our products and services. 28 .

• To encourage the employees to upgrade and enhance the knowledge and skills through effective Training and Development. What will change the industry further: • • • • • • • • Increased acceptance of premium & double glazed windows Factory fabricated windows as a norm Consolidation in the industry Retail sale of windows – in malls & DIY outlets Standards for Aluminum windows Patents & unique designs Standardization of sizes Service: Delivery and post delivery Focus area 4 months of operation and marketing done by the promoters clearly indicate that the window market has a huge potential in this region. have plumped for aluminum as the preferred choice for home products. domestic consumers. Fenesta’s sale in Bangalore itself is 130 crore. With globalization and transmission of fashion catching up. The indications and the enquiries guarantee that the chosen category has enormous opportunities. • To transform the organization to a customer centric Institution Growth prospects The potential of the market is huge and untapped because of the unorganized players and rise in income amongst the middle class families who are keen on having reliable products for their houses. too. 29 . The initial discussion with leading builders and prominent architects also emphasize the need for an organized player with cutting edge design and technology which can grow in the market. which translates into 65% sales turnover of the company.

5 crore. The pillar of the volume game will be to set up a factory in Bangalore to meet the demands and spruce up the sales in subsequent years. Factory – Scaling and playing the volume game Volume game has been the order of the day and Nautilus interior solution is sitting on a great opportunity. all Nautilus has to do is to set up the fabrication factory in Bangalore. Alutec and Hindalco have been encouraging Nautilus interior solutions to commence the factory to tap into the market. Neither Alutec nor Hindlaco have plans to invest in a fabricating unit. The need of the hour The large enquiries and negotiations clearly indicate the market potential. The builders in discussion are Divyashree builders.000 in the last 2 months of operations. The customers include the prestigious builders like Salarpuria and some of the leading architects in Bangalore.00. Order enquiries The order enquiries so far have been worth Rs 4. This has been achieved without much spending in marketing or employing professionals to market the product. 90% of the enquiries are from 4 major players in the market. Most of them have been implemented. With this factory several markets can be reached. But Alutec production in India is not geared up to meet this kind of demand. This clearly gives Nautilus interior solutions opportunity to manufacture the windows and doors to cater the market. Since extrusions are supplied by Hindalco and hardware by Alutec. So Nautilus can also service other galleries which are coming up in the country. anodizing unit etc) to manufacture the end product. Unlike Fenesta or Sara LG there is no need to set up the several units (extrusion unit. 30 . Gopalan builders and G corp. Nautilus interior solutions is foreseeing a huge opportunity.Marketing of the windows so far Nautilus interior solutions has been able to bag orders worth Rs 45. Salarpuria builders.

Advantages of having own factory: • • To tap into the builder market who is looking for large supply Delivery time: Can cut down the delivery time considerably to meet the project requirements of the architects and builders. then this model can’t be replicated. • Profits from the wastage: After manufacturing the end product there will be 15 to 20% wastage of aluminum extrusions in the factory. Product line: From premium to economy priced 31 . since we control the production • Pricing: In a price sensitive market we can compete much more efficiently by controlling the supply chain and not dependent on the parent company completely for the production. This can either be sold at the metal price or can be used to manufacture low priced products at the unit itself. Market data of the players and inputs from builders. Hindalco has wholeheartedly agreed to supply the extrusions for Nautilus interior solutions. Hence we have a first mover advantage and if we can tap into the market and establish early. The uniqueness of this arrangement: Hindalco will supply the extrusion for the assembly unit owned by the Aluminum Gallery. architects and the market growth data.Alutec has agreed to supply the machines from Italy to set up the factory apart from committing the hardware supply as well. which has the right to buy the extrusions because of the license it holds. Projection of the market and sales volume has been done based on the Bangalore production. so that the whole model is practical and implementable. Training of the people: Skilled labor at the factory and execution at the site are two crucial factors for the success of this industry. Alutec has committed to transfer this knowledge to Nautilus.

As the average per capita consumption of aluminum in the country is 0. Since this is an independent franchisee there is freedom to introduce other life style products to the target audience because of the category we are marketing. Long term vision – To be a premium player in architectural products Since Hindalco has plans to launch and tie up with prominent brand the firm can offer many more architectural products to the target market. • Commercial purpose: Anodized and powder coated aluminum windows from Alutec • Economy series: Riding on the brand value. Retail experience Aluminum retailing is still in its infancy in India.The premium windows from Alutec will drive the image in the market and we can utilize the extra capacity of the factory to manufacture economy priced windows to cater to the price sensitive customers. This can be manufactured using economical aluminum extrusion and medium priced hardware to cater the price sensitive segment. Wood finish windows from Alutec. • High end premium windows: Sialwood from Alutec. This arrangement is a clear win-win situation for Nautilus and the potential investor.70 kg against the developed countries such as the US and 32 . Fund requirement To materialize this dream Nautilus interior solutions has decided to bring-in external funds. The proposal Seeing the growth divers and the volume model Nautilus has decided to invite a potential investor by offering the equity in the firm.

with new additions of the brands and life style products this can be extended to other parts of the Karnataka as well as south. we can spruce up the image and also pull the consumer traffic to the retail outlet. Since Nautilus has a classy retail gallery in Bangalore. we have an unparallel advantage with the experiential gallery. If we can scale the volume and offer a good price the doors can be opened in construction driven market in Middle East. Export possibilities: With lower production costs in countries such as India. Investment requirement: 33 . trivison and 3-form don’t have a retail showroom in Bangalore. Also more and more consumers would be able to take an informed decision on the products they intend to procure for enriching their environment that will be a virtual visual delight. Since investment in art is on all time high in India. On the above factor and on the account of the enquiries and discussion from Middle East indicates good export demand for windows and doors. Elevating the gallery from aluminum designs to experiencing art Since architectures and builders are also connoisseurs and users of art. we can use the walls of the gallery to promote the art. With Indian architectural skyline witnessing a transition from traditional to the modern the retail presence in the long term can give an unparallel advantage to the firm. Since the market is moving more from floor level to touch and feel experience. In long terms there will be considerable turnover from the retail customers as well. which can save up to $150 per ton.Japan's at over 25 kg. More over this combination will always contribute to the bottom-line as well. there is vast scope for making utility and lifestyle products of aluminum so that the consumer choice for material substitution gets widened and he/she would get the real value for the money spent. For example: Brand like Hindalco Everlast. Hunter Douglas.

INR 100 lakhs Note: • • Open to giving stake in the company. Percentage of the stake can be decided Giving the exclusive right to the factory set up a guarantee Summary: We strongly believe that if the producers of Aluminum windows get more organized . increase productivity and production capacity. promote it through sound budget by exploiting mass media campaign with right retail experience. attain technical competence. CHAPTER 2 RESEARCH METHODOLOGY BACKGROUND OF THE STUDY 34 . the market for this products will grow exponentially. deliver quality products timely.

This dissertation study on “ANALYSIS OF PROJECT APPRAISAL PROCEDURES” at Aditya Brila The Aluminum Gallery is concerned with the project appraisal techniques. In short. namely: • • • • • • Technical analysis Financial analysis Legal Analysis Market analysis Ecological Analysis Management Analysis Project appraisal has become the critical and most important as the estimations of the cash flows are based on some parameters. STATEMENT OF PROBLEM As Adity Brila Aluminum Gallery has opened there new factory in order for expansion it is necessary for a project appraisal. studying the effectiveness of these procedures and suggests some steps in the direction of high efficiency achievement concerning project appraisal. using economic appraisal or some other decision analysis technique. which may not remain static. in a structured way.Project appraisal is a generic term that refers to the process of assessing. After the enactment of the project also there are things. project appraisal is the effort of calculating a project's viability. therefore the project appraisal plays an important role. the case for proceeding with a project or proposal. Project appraisal is the process of critical evaluation of the all six facets of the project appraisal. competitors. It often involves comparing various options. which may be uncontrollable like government policies. The project appraisal mainly considers the things that are tangible and possibly ignoring the arrival of competition into the market in the future.. strategies. etc. The project financed have to be viable 35 . The future is highly uncertain and hence the guarantee if cash inflow is a questionable concept.

The purpose of appraisal thus varies from one appraising agency to another. thus it is important to take even aspect that is present and future possible changes has to be taken into consideration before a new plant or factory as been opened and thus project appraisal is very important topic and a life blood of a good financial system. While the objects of appraisal may differ. Many of the enterprises. The weight age given to individual factors varies from order to order. subsidies. This is familiarly knows as project appraisal since aluminum gallery new factory outlet deal with fabrication of doors and window it should make sure it is better than the upvc windows and doors. Basically the project appraisal is about finding out whether the project is technically feasible and financially viable. its size. the feasibility and success of the project has become very difficult to predict any changes in one country. the nature of the 36 . important among those are the type of organization activity of the customers.as well as a wrong decision in assessing a project which is not even potentially viable may lead to mounting industrial sickness and wastage of scarce resources. IMPORTANCE OF STUDY Industrial projects are appraised by different institutions for a variety of reasons like Government and allied agencies may appraise project with a view to find out whether they should be given tax exemptions. In addition to proper appraisal sanctioned so that corrective steps whenever necessary can be taken in right time. the general principals of appraisal are almost same. one factor may be political and economical and sociological has far reaching effect on the economy and the financial system as a whole. guarantees or other incentives. became impaired after the liberalization of the economy. NEED FOR STUDY In today’s highly uncertain and globalize economy. Equally important are the marketability of the projects and successfully sell the goods so produced. Thus adequate knowledge of the techniques of project appraisal and follow up is necessary on the part of all concerned of new scarce national resources. which were earning good amount of profits. The factors are taken into consideration in the security of individual applications.

its profitability etc. SCOPE OF STUDY The Study covers the operational jurisdiction of Aditya Brila Aluminum Gallery OBJECTIVES OF THE STUDY  To study the project appraisal procedure at Aditya Brila Aluminum Gallery  To know the efficiency of the project appraisal process  To suggest some measures to overcome the problems in the project appraisal process and make the procedure more effective TYPE OF RESEARCH The research approach used here is exploratory research. uncover information needs.competence. In cluster samplings they are to two stages in the first stage a sample of areas is chosen. SAMPLING TECNIQUES A cluster sampling technique has been used. in the second stage a sample of respondents within those areas is selected. So the sample area is the corporate office of Aditya Brila The Aluminum Gallery Richmond town and the respondents are the employees working in that branch. resourcefulness of the promoters. the financial soundness of the project. SAMPLING UNITS 37 . clarify relevant issues uncover variables associated with a problem.. and/or define alternatives for addressing research objectives. It is designed to generate basic knowledge. the quantum of the loan.

Primary Data The primary data was collected by discussion with the management of Aditya Brila Aluminum Gallery to get information about project appraisal and financing. Analysis of techniques and methods adopted by issuing questionnaire to the employees of the company. Some information was also collected from internet which would be supportive for the research. Bangalore. An interview schedule was used for the purpose of clarifying doubts which rose during the course of the study. There were 25 respondents they are the employees of the company from different departments. DATA COLLECTION The research includes gathering both Primary and Secondary data. The research was carried out in The Aluminum Gallery. RESEARCH INSTRUMENTS Research instruments like questionnaire which can be structured and unstructured were issued to the company’s employees to analysis the present project appraisal process and procedures.It gives the target population that will be sampled. Secondary Data A part of the data was collected from secondary source which would support are research. Some data was extracted from company journals and the annual report like the project cost and balance sheet of the company. 38 .

Presentation and Analysis of data and Interpretation 39 . it was tabulated and the findings of the research were presented followed by analysis and interpretation to reach certain conclusions.DATA ANALYSIS AND COMPLETION: After the data has been collected.

Table 1: Table to determine whether the respondents feel that the location of the new factory outlet is easy to access sources of raw materials Raw material easy accessibility Yes No Total No. 40 . Table 2: Table to determine the whether power and other utilities for production are easily available at the new factory outlet. of respondents Graph: Graph is to determine whether the new factory outlet location is easy to access raw materials. 12% yes no 88% Interpretation: The new factory outlet location is easy to access raw materials.

Raw material easy accessibility Yes No Total No. of respondents Graph: Graph is to determine whether the power and other utilities for production are easily available in the new factory outlet. 44% 56% yes no Interpretation: The power and utilities services are easily available in the new factory outlet. Table 3: Table rating the factors in the process of manufacturing products Factor in the process of Ratings of number of respondents 1 2 3 4 manufacturing products 41 .

principal input and then its end use. 42 .Quality of the product Its end use Latest development Principal input Total 14 1 10 25 7 2 7 9 25 2 8 5 2 2 7 10 12 25 25 Graph: Graph shows the ratings of the factors in the process of manufacturing products by the respondents. the latest development. 60% 56% 50% 40% 30% 20% 10% 0% 1 4% 0% 2 3 8% 8% 40% 36% 28% 28% 32% 40% 56% Q u a lit y E nd use 24% L a t e s t d e ve lo p m e n t p rin c ip a l in p u t 12% 8% 20% 4 Interpretation: In the process of manufacturing a product quality of the product is given preference then.

of respondents 8 10 7 25 43 .Table 4: Table determining factors of products mix that hold more preference Factors of product mix Quality performance Innovative features Total No.

of respondents 5 20 25 44 . 28% 32% Quality perform ance Innovative features 40% Interpretation: Performance of the product in the market has more preference in the product mix then quality and innovative features.Graph: Graph determining factors of product mix that hold more preference. Table 5: Table determining whether the present plant capacity is sufficient to meet the growing demand for the products Plant capacity sufficient to meet demand yes No Total No.

Graph: Graph determining whether the present plant capacity is sufficient to meet the growing demand for the products. 20% yes no 80% Interpretation: The plant capacity is not sufficient to meet the growing demand of the products. Table 6: Table rating the factors of selecting new plant and machinery for the factory outlet. Factors of selecting new plant and Ratings of number of respondents machinery Quality 1 11 2 8 3 4 4 2 45 .

Level of technology sophisticated The expected delivery schedules Performance guarantee Total 13 1 25 4 8 5 25 8 3 10 25 14 3 25 Graph: Graph determining the rating of respondents for selecting plant and machinery for new factory outlet. 46 .

the quality of the machinery. the expected delivery schedules and the required performance guarantee.60% 52% 50% 40% 32% 32% 30% 20% 10% 0% 4% 0% 1 2 3 4 20% 16% 16% 8 %8 % 24% 48% 44% 40% Q u a lit y 28% 28% L e ve l o f t e c h n o lo g y D e live ry s c h e d u le p e r fo r m a n c e g u a r a n t e e Interpretation: In the factors of selecting plant and machinery for new outlet level of technology sophisticated is the most preferred factor then. 47 .

Table 7: Table determining the period legal analysis is conduct. Table 8: Table determining whether capital cost is realistic 48 . of respondents 8 17 25 Graph: Graph determining the period legal analysis is conducted 0% 32% beginning m way id com pletion 68% Interpretation: Most of the legal analysis is conduct in the beginning of the project. Period legal analysis is conducted beginning Mid way After completion Total No.

Is capital cost realistic yes No Total

No. of respondents 19 6 25

Graph: Graph determining whether capital cost is realistic

24%

yes no

76%

Interpretation: The capital cost is realistic

Table 9: Table determining whether working capital is sufficient enough to run the wheels of the industry. Is working capital sufficient yes No. of respondents 16 49

No Total

9 25

36% yes no 64%

Interpretation: The working capital is sufficient enough to run the wheels of the industry.

Table 10: Table determining the percentage of market share held by the company, compared with the competitors. Market share 15%-25% 25%-50% No. of respondents 17 8 50

50%-75% 75%-100% total

25

Graph: Graph determining market shares held by the company when compared with the competitors.

0% 0% 32% 15%- 25% 25%-50% 50%-75% 75%-100% 68%

Interpretation: The Company holds upto 15% - 25% of market shares as compared with the competitors.

Table 11: Table determining product that has more demand in the market. Products Aluminum doors Aluminum windows Structural glazing partition total No. of respondents 5 7 9 4 25 51

Table 12: Table determining reasons consumer prefer aluminum product then upvc products. 16% 20% Aluminum doors Aluminum windows Structual glazing Partitions 36% 28% Interpretation: Structural Glazing has more demand in the market as compared to other products. Reasons consumer prefer aluminum product Green material Finishing No. of respondents 12 8 52 .Graph: Graph determining the product that has more demand in the market.

20% Green material 48% Finishing Quality 32% Interpretation: The reason consumers prefer aluminum products then upvc product is because aluminum products are green material in nature. Table 13: Table determining whether aluminum product can match up with market demand equalant to upvc products.Quality total 5 25 Graph: Graph determining the reasons consumers prefer aluminum product then upvc product.of respondents upvc products yes 17 53 . Market demand of aluminum equalant to No.

No Total 8 25 Graph: Graph determining whether aluminum product can match up with market demand equalant to upvc products. Table 14: Table determining products are rightly priced Products are rightly priced yes No Total No. 32% yes no 68% Interpretation: The market demand for aluminum products can match up with the demand for pvc products. of respondents 23 2 25 Graph: Graph determining products are rightly priced 54 .

Table 15: Table determining the person responsible for the proper management of the project Person responsible for proper management Marketing head fabricator Supervisors of technical department No. of respondents 13 7 5 55 .8% yes no 92% Interpretation: The products are rightly priced.

total 25 Graph: Graph determining the person responsible for proper management of the project 20% Marketing head Fabricator Supervisor of technical deparment 52% 28% Interpretation: Marketing head is responsible for the proper management of the project. Table 16: Table determining the period the product can be reused. Period product been re used Life long 25 years Depends on the customers total No. of respondents 8 5 12 25 Graph: Graph determining the period the products can be reused 56 .

32% 48% Life long 25 years Depends on the customers 20% Interpretation: The period the products can be reused depends on the customers Table 17: Table determining whether plant layout is convenient to dispose of the industrial effluent without pollution Plant layout convenient to dispose of the No. of respondents industrial effluent yes No Total 19 6 25 Graph: Graph determining whether plant layout convenient to dispose of the industrial effluent without pollution 57 .

2% 4 ys e n o 7% 6 Interpretation: The plant layout is convenient to dispose of the industrial effluent without polluting the environment. of respondents 9 9 4 3 25 Graph. Graph determining the steps to reach out the domestic crowd easily 58 . Steps to reach out domestic crowd Open more outlet Increase advertisement Lower price Exhibition total No. Table 18: Table determining the steps to reach out the domestic crowd easily.

of respondents 4 9 12 25 Graph: Graph determining the rating of project feasibility 59 . Table 19: Table determining the rating of project feasibility Project feasibility Low average high total No.12% 36% Open more outlets Increase adv ertisement low prices er Exhibitions 16% 36% Interpretation: Opening more outlets and increasing advertisement are the steps to reach out the domestic crowd.

There are is a need of more generators due to increase in power cuts. 60 . The power and other utilities are sufficient enough. 3.16% Low 48% Average High 36% Interpretation: The project feasibility is high. Aditya Brila Aluminum Gallery has been successful in there project appraisal of the new factory outlet. 2. Aluminum industry is a fast growing sector. On the technical analysis bases we found out that:The location of the plant is convenient is to access raw materials easily. FINDINGS AND INTERPRETATIONS 1.

The working capital is sufficient enough to run the wheels of industry. 6. 8. The products have been rightly priced according to the present market. The upvc products hold greater market share then aluminum products. Structural glazing and aluminum windows are the most demanded products in the market. On the bases of management analysis 61 . Product mix has more preference for performance and quality of the product. 4.25% of market share. There some department which is run short of working capital. On financial bases we found that The capital cost is realistic. On the bases on marketing analysis we found that The aluminum products hold 15% . The aluminum market is growing so fast that it can over run the upvc product very soon. The legal analysis is mostly conducted at the beginning of the project. The present plant capacity is not sufficient enough to meet the growing demand it needs expansion. 5. The green martial is the greatest advantage of aluminum product over upvc products. This should be over come soon or else it will effect the production. On the bases on ecology 7.- The process of manufacturing mainly depends on the quality of the product and latest development. It is now under or over charged and able to meet all the fixed cost of the company. The factor influencing the selection of new plant and machinery are level of technology sophisticated and quality of the machine. All the department are responsible for the proper management of the project But the marketing head and the team play a major role in the management of the project.

The marketing team should work hard with innovative and unique advertisements and other schemes to increase the customers and market shares. The easier steps to reach out the domestic crowd it is to open more outlet and increase advertisements 10. 62 . There is need to expansion to open few more factory outlets to meet the growing demand. They must work on raising some additional finance for expansion plans. So they provide good after sales services. 4.- It is a very eco friendly product. 2. As its reused The products are basically reused on the demand of the customer. Recommendations 1. 9. The company should work on their innovative feathers of the product in the product mix by appointing young designers with innovative ideas. Aditya Brila The Aluminum Gallery need to buy more generators due to increase in power cuts. The project feasibility is high which indicates that the project will be profitable to the company. 3. The industrial effluents are disposed conveniently without polluting the environment. 5.

Plan for exporting their goods and expanding their business globally. Working capital should be worked upon its not sufficient for some departments. CONCLUSION Aditya Brila Aluminum Gallery has been Bangalore’s leading aluminum dealers. the company should also consider the risk factor involved in the project by using decision tree method. The company can implement net work techniques like PERT and CPM for the proposed project. They should open few more showrooms in different part of the city so the products are easily available 7. standard deviation method and coefficient of variation method. 8. The primary goal of this report is to identify action initiatives that make up the project Appraisal at The Aluminum Gallery. While appraising the project.6. So there will be lot more project appraisals in the near further. Its demand has been rising day by day and this arises a need for expansion to meet the demand. 10. 9. 63 .

com 2.Since there is more demand for aluminum windows and structural glazing it should bring in more innovative ideas and design in it and also try o increase the demand for other products. Bibliography Websites 1.nautilusin. Annual Report of the Aluminum Gallery 64 . The project as designed is technically feasible socially desirable. www. www. financially and economically viable environmentally sustainable.com Journals 3. As it a leading organization in the aluminum industry it should maintain its quality standard and remain in the hearts of the customer.hindalco.

15 16 51. Brochures and journals of the aluminum gallery ANNEXURE 1 Project cost Project details Land .85 685 65 .Leased Building & Civil Works Pit & Machinery Deposits Preliminary andPre-Op Expenses Interest During Implementation Working Capital margin Total cost in Rs lakhs 135 472 4 6.4.

Project Details DebtTerm loan from LIC Proprietors capital total Cost in RS lakhs 410 275 685 SECURITY Particulars Proposed Building Proposed Machinery Total Amount in lakhs 135 472 607 Some Important Ratios Details Ratios 66 .

Is the new factory outlet location easy to access to raw materials? If no give reasons  YES  NO ---------------------------------------------------------------------------------------------------------------------------------------2.49: 1 39. Is the power or other utilities for production available easily in the factory outlet? If no give reasons.52% 31. 1.29% Power Requirement Loan Amount Applied Loan Amount Sanctioned 480 KVA 410 Lakhs 410 Lakhs QUESTIONNAIRE ON PROJECT APPRAISAL ANALSIS PROCESS AT ADIYA BRILA ALUMINUM GALLERY NAME: DESIGNATION: I would be greatfull if you would take few minute to complete this questionnaire to help me to find out the project appraisal standards.15% 29.51: 1 1.Current Ratio Debt Equity Ratio Overall Security Margin Return on capital IRR Break even point As percentage of installed capacity 2.11% 33.  YES  NO -------------------------------------------------------------------------------------------------------------------------------------------------------3. Rate the following process of manufacturing products depends upon? Quality of the product 67 .

Is the capital cost realistic? If no give reasons  YES  NO --------------------------------------------------------------------------------------------------------------------------------------------------------9.Aluminum doors .Partitions 68 .25% . Product mix holds preference for .50% .Aluminum windows .Innovative features 5. What percentage of market share does it hold as compared with the competitors? .100% 11.15% .Performance .Quality . Rate the factors of selecting plant and machinery for the new factory outlet? . Which product has more demand in the market? .25% .In the beginning of the project . YES NO ----------------------------------------------------------------------------------------------------------------------------------------------------- 6.Quality of the machinery . Is the working capital sufficient enough to run the wheels of the industry? If no give reasons  YES  No --------------------------------------------------------------------------------------------------------------------------------------------------10.50% .In the mid-way of the project .After completely setting up the project 8.Level of technology sophisticated .75% . When do you conduct your legal analysis? .75% .The required performance guarantee 7. Is the present plant capacity sufficient to meet the growing orders for the product? If no give reasons.Its end use Latest development Principal inputs 4.The expected delivery schedules .Structural glazing .

Who is responsible for the proper management of the project? .Life long .Increase advertisement .Fabricators .25 years .Marketing head . Do you think you can match up with the market demand of aluminum product equalant to upvc products? Give reasons. On a scale of 1 to 3 rate the project feasibility? .Green material .Quality 13.2 Average 69 .Lower the prices .Open more outlets . Is the plant layout convenient to dispose of the industrial effluent without pollution? If no give some suggestions  YES  NO --------------------------------------------------------------------------------------------------------------------------------------------------------18.1 low . Do you think the product our rightly priced?  YES  NO --------------------------------------------------------------------------------------------------------------------------------------------------------15. For what reasons do you think consumer prefer aluminum doors and windows then the upvc doors and windows? . What are the easier steps to reach out the domestic crowd? .  YES  NO ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------14.Supervisor of the technical department 16.Finishing .Depends on the customer 17.12.Exhibition 19. After how many years do you reuse the product? .

financial analysis.3 High Suggestion and comments:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ EXECUTIVE SUMMARY Aluminum is among the most essential material for construction and interior designing industry. Wall cladding. They have started a new factory outlet to meet the growing demand for which a project appraisal is conducts in the organization. To get a clear cut picture of the situation a questionnaire was passed to the employees of the organization to know the procedure and the feasibility of the project. It was found that 70 . management analysis and ecological analysis. legal analysis. ladders. It has carried out all the steps of the project appraisal like technical analysis. Aditya Brila The Aluminum Gallery promise to usher you into a new world of novel and creative aluminum applications – windows. doors.. marketing analysis. aluminum composite panels and banquet furniture. The aluminum gallery offers builders and architects a unique opportunity to explore new dimensions for their designs impart a distinct look to their creations. it is an ideal outlet to pick up lifestyle aluminum products and lend a contemporary look to their homes and offices. And for trendy consumers.

The company needs further expansion as the present plant capacity is not sufficient enough 71 .the project is feasible.

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