A PRODUCT PROJECT REPORT ON

“CANNED MUSHROOMS”
Name Roll No. Class Year College : JHALA AVANIBA N. : 16 : T.Y.B.B.A. : 2006 – 2007. : Shri J.H.Bhalodiya women’s college

* Submitted To *

Saurashtra University RAJKOT.
* Guided By *

Prof. Vijay Bhatasna Prof. Smita C. Vyas

* DECLARATION *
I Jhala Ananiba N. the students of T.Y.B.B.A. in shri J. H. Bhalodia women’s college, here declare that the project work presented in tis report is my own work & has been carried out under the supervision of Prof. Smita C. Vyas of Shri J. H. Bhalodiya women’s college.

The work has not been the submitted to any other university for any examination.

Date :

Place : RAJKOT

Signature Avaniba Jhala

* PREFACE *
For a Socio-economic growth & balanced structure development, small scale industries are a very important tool. It is considered highly for the creation of employment

opportunities as well as development of entrepreneur skills. The better use of scarce financial resources & appropriate technology is also ensuring by the small-scale industries.

In

the

present

era

of

big

industries

global

competition, the condition of position of SSI is not in the best form. So, there is a great need to change the style of management. In the syllabus of T.Y.B.B.A. university has include the subject of entrepreneurship & management of small business. The main use of this subject is to teach, to solve problems & to take decisions I the management of small business.

I am extremely, happy to submit this report for SSI, under the prescribed syllabus of Saurashtra university. I have got a chance to acquire practical knowledge at the time of collecting information. I have prepared a project a report on “Canned mushrooms”. I have tried my level best to make this report most presice, relevant & systematic.

H. N.O. help & guidance from many people.B. BHALODIA WOMEN’S COLLEGE – RAJKOT. KORINGA for giving me such an opportunity to have an insight into the small scale business work in the form of this product project report. First of all I thanks Shri J.Y.B. I had a wonderful opportunity to make a product project report on “Canned Mushrooms” as a part of my practical training in T. This report would not have been possible without the help of many people whom I would like to acknowledge & thanks for their kind co-operation. She had spent her precious time for my product project report. SMITA VYAS – H. I specially thank Prof. For giving me opportunity of doing product project report. It would be impossible for me to . H.* ACKNOWLEDGEMENT * Successful accomplishment of any work requires cooperation. I would like to thank my respected principal Mr.D for giving me important guidance for making the project informative & well – constructed.A.

I thank All My FRIENDS AND CLASSMATES for giving me important guidance. Date : Place : RAJKOT Signature Avaniba Jhala . At last. but not least. who played important roles to complete my product project report successfully. I thank All HIDDEN PERSONALITIES. I thank MY PARENTS & FAMILY MEMBERS to give me every kind of support & almighty the GOD for helping me out whenever I viewed an obstacles. which is very helpful for me to complete my project in perfect time duration.complete this project without her important instructions 7 supervision. as they have left no stone unturned & betterment.

24. 11. Particulars Introduction to S. Project at a glance Bio-data of partners Basis & Presumptions Organizational structure Implementation schedule Location Justification Portrait of Product Details of Raw-Materials Marketing Analysis Production process Quality control & standards Production capacity Pollution control Energy conservation Machinery Utilization Financial Aspects Financial Analysis Profitability Analysis Break-even analysis Computation of Ratios Risk factors Benefits for Export-oriented unit Future prospects List of Suppliers Conclusion Pg. 13. 1. 14. 21. 25. 26. No. 12. 17. 18. 4. 3. 19.S. 20. 10. 23.* MAIN INDEX * No. 9. 22. 16. 5. 2. 8. .I. 6 7. 15.

* Small Scale Industry. Seeking to enhance the investment cap for small scale units from Rs. The bill aims to consolidate the laws governing small & medium enterprises.S. This report is made within the boundaries of S. Hence. helps generating employment opportunities & many more benefits are available to the economy. 1 corer to Rs. has place of pride in our economy.I. It is the base for medium & large scale industry helps in earning foreign exchange. . 5 corers. with the intense to acquaint the students with the functions of entrepreneur. 1938. It also seeks to extend progressive credit facilities to SME’s in line with the guidelines laid out by the RBI.S.• INTRODUCTION TO S. the government has introduced the small & medium enterprise development Bill – 2005 in the “LOK – Sabha”.I. In a move to enable small enterprise to grow the bill provides that more than 50 employees can be freed from the purview of labour laws including the employer’s liability Act.

RAJKOT.D.I. Kalawad road RAJKOT.* PROJECT AT A GLANCE * Name of the unit : ‘Varni” canned mushrooms Address for Communication : “Varni”canned mushrooms..C. Sir Lakhajiraj road. Metoda Name of the product : Canned mushrooms [Export orinted] S. Type of the unit : Partnership firm Location of the unit : “Varni” canned mushrooms G. registration no : Applied for Partners name : Ananiba Jhala Kripalsinh Rana .I.S.

Sadguru nagar. Age : 24 yrs.A. Address : “Pramukh Drashti”. With Marketing & Finance.Brand name : “Healthy Bite” Banker : ICICI * BIO-DATA OF PARTNERS *  PARTNER – I Name : Jhala Avaniba N. 29. RAJKOT – 360005. Experience : 2 yrs. Opp.B. Financial contribution : 25% Role in the unit : Managing Marketing & Finance . Educational Qualification : M. Ruda-2 Kalawad road.

D. Experience : 2 yrs. Ruda – 2 Kalawad road. RAJKOT – 360005. [Medicine] Age : 28 yrs. Educationsal Qualification : M. 29. Address : “Pramukh Drasti”. Financial contribution : 15% Role in the unit : Research activity . Sadguru nagar. Opp. *PARTNER – II * Name : Rana Kripalsinh N.

forwarding. 2. 4. In each A-2-1/2 can. 6. tax etc. The cost of installation & electrification is taken @10% of the cost of machinery & equipments. 5. the other fruits & vegetables can be canned with the same machinery equipments whenever mushroom is not available. are considered under pre-operative expenses. trial production. 7. is taken @10% of the cost of machinery & equipments. Depreciation has been taken on: . To run the unit viable throughout the year. This project is based on single shift & 300 working days in a year.* BASIS & PRISUMPTIONS * 1. The yield of canned mushroom has been considered as 60% based on fresh mushrooms. 3. FPO fees etc. 8. The cost of packaging. The cost of machinery & equipments/materials indicated refers to a particular make & the prices are approximate to those prevailing at the time of preparation of this profile. The drain weight of canned mushroom has been taken as 440 gms. Non-refundable deposits-project cost.

10.(i) (ii) Building @ 5% & Plant & Machinery @ 20%. 14. . 13. 9. it is suggested that unit should have own arrangements for cultivation of mushroom for consistency & regular availability of quality raw-materials. Break-even point has been calculated on full capacity Utilization. Minimum 40% of the total investment is required as margin money. For smooth functioning of the unit. 12. with yearly Installments. Interest on total capital investment has been taken @ 14% per annum. 11. Pay-back period of the project will be 7 yrs. Mushroom cuttings/stems can be utilized for preparation f mushroom pickles & sold in local markets to get additional profit.

/E.*ORGANISATION STURCTURE * Board of Directors M. / Chairman V.P. (Production) V. D.P.P (Marketing) V.P V./E.P.P (Finance) (Personnel) Manager Manager Manager Manager Assistance Assistance Assistance Assistance Salesman .P./E.P./E.

Selection of site Form of ownership Feasibility report Registration with D/C.* IMPLEMANTATION SCHEDULE * The following steps are involved in implementation of the project. normally project.C. 1. 11. 6. Efficient planning & simultaneous operations will be major factors for timely stare of the production. pollution control board. 3. . 7. 5. 8. clearance etc. Miscellaneous: Power & water connection. 10. As it is a 100% export oriented unit of canned mushroom.) Construction of factory shed & Building Procurement of machinery & Equipment Plant erection & electrification Recruitment of manpower Arrangement of raw-material including packaging material. 2. 4. Arrangement of finance (term loan & W. 9. Selection of marketing channel 12.

In other worlds it can also be said as : . “Location of plant or industry means a scientific choice of a region or specific sight in a region where the business unit is to be situated. The location should be either near to the customer i.” In other words “the main object of an industries is to maximize profit through minimization of production & distribution cost. communication. The objective is realized only if the firm is located at a place which offers all economics of production & distribution. The location should be such which can provide ancillary facilities like water.* LOCATION JUSTIFICATION * Location is the prime factors to be considered for starting a new business. market or where raw-materials is easily available.e. transportation & easy availability of labour. electricity.

“Selected location on one side can earn variety of benefit & any mistake in selection of location on the other side can result in a great loss. Both type of labour can be made available from the local are so availability of labour never creates problems. Raw-material at proper time & at reasonable cost & in right quantity directly affects the price of he final product. Unit requires both semiskilled & skilled labors.” The following factors have been considered at the time of choosing the above location. .  Transportation facilities: Transportation is required for assembling of rawmaterials & distribution of finished product.  Raw-materials: The major component or major input which is an inevitable part of any production process is the availability of raw-material.  Availability of labour: Availability of labour influences the selection of location.

For the distribution of he finished product, trucks, rickshaw will be used & for a exporting out of the nation ships will be used. As the product is of lightweight & not of costly nature.  Land: The basic necessity for each & every industry is land without land no industry can be come into existence. Our unit is situated at Veraval-shaper.  Water & Electricity: This area has no problem of water & electricity is also easily available with the help of the PGVCL.

 Other anciliary services: Rajkot is considered as the main hub of Saurashtra region as far as banking, insurance, technical assistance etc. is concerned.

Hence, it can be concluded that selection of location of unit is really necessary as it helps a lot in lowering the cost of production.

* PORTRAIT OF PRODUCTS *

Mushroom, a fungus trait body, is considered a delicious food all over the world because of its taste aroma & structure. It is full of nutrients, low in calories, high in proteins, vitamins, minerals & a rich source of folic acid. It is an alternate choice for weight conscious people & anaemic patients. It has 4.9% protein content which is more than cow-milk, greenvegetables such as beans etc.

Mushrooms are highly perishable commodity & should be marketed & consumed as soon as possible after harvest because of their high moisture content (90.92%). However, its shelf-life can be enhanced for a larger period by way of processing. Generally mushrooms are processed-frozen dried & canned.

This project profile has been prepared for canning of mushrooms, for a 100% export-oriented unit. The agricus bisporus [white button] type of mushroom is suitable & preferred for commercial canning.

* DETAILS OF RAW-MATERIALS *

No. 1.

Particulars

Quantity

2.

3. 4. 5.

Mushrooms “A” 55 tonnes Grade(canning Quality) Salt, sugar, critic L.S Acid, chemicals, preservations. A-21/2 can 75,000 Carton Boxes labels, Gums, Box Serapping etc. wastage of canes cartons Boxes, labels etc. 6,250 L.S.

Rate (in Rs.) 35,000

Amount (Rs. In lakhs) 19.25

-

0.25

12.00 each 15.00 each -

9.00 0.94 0.85

6.

L.S.

Total

0.15 30.44

*MARKETING ANALYSIS * INDEX No. Market Potential 2. Particular Pg. Market channel 3. No. 1. Promotion Decision . Pricing decision 4.

The present global demand of mushroom is about 1. It is also estimated that the gap between the demand & supply of mushroom in the world market is around 25 lakh tones.e. mainly in producers domestic markets. dried. Taiwan & Indonesia are the main producers of mushroom products which also capture the major share of world market over 50% of the total world production of the mushroom. is sold in fresh form. At. frozen. i. canned etc. The world trade of mushroom is expected to reach a staggering figure of US $ 15 billion by next 5 years. .* MARKET POTENTIAL * It has been estimated that the export market of canned mushrooms in the world trade is about US $ 1000 million. present. china. It has also been estimated that 50% of the mushrooms for processing are canned. The balance is processed.000 tonnes per annum.15. The consumption of mushroom is going up at the rate of around 10% in international market.

as per the information available from APEDA(2001-2002) 15897 M.42. Fresh mushroom 1.631 kg.000 M.The major importing countries are Germany.S. of mushroom of he value of Rs. i.47.T.97.05. . Japan.e. U. 51. In India.325 & prepared & preserved 40. Australia etc.A.99. 72.30.24. value Rs.54.258 kg. Present production is around 30.. Total export is divided into 2 categories. Canada. value Rs. 21.17.504 which is a very negilible figure as compared to the world share.T.829 is exported..

* MARKET CHANNEL * If you can sell your mushrooms or mushroom products directly to an end user. might win the sale. establishing a relationship with the buyer & reliably delivering a quality product are essential for this type of marketing. premium produce. or in supermarkets is possible in many locations. top quality & consistent supply rather than the lowest price. Some chefs specialize in locally grown foods & may be interested for that reason. Local grocery stores are another potential buyer to fresh mushrooms. excellent service. Direct marketing of mushrooms at local farmers markets. In any case. When competing in local markets. Other are willing to pay for fresh. you will naturally receive a better price than if you sell to a wholesaler. particularly with gourmet chefs. Although the wholesaler with an established account creats stiff competition. . efficient producer might still have an advantage in some niche markets. the small. to restaurants.

A significant capital outlay & a high level of management skills are required to begin production & at current prices. for growers who choose not to involve themselves in direct sales. except on a small scale for direct marketing. The market is extremely competitive. recovery of he initial investment might not be possible. However. .Selling fresh mushrooms to a wholesaler will mean a lower price than if you market directly. Small-Scale commercial production of white-button mushrooms & other Agaricus varieties such as portobellas & criminis is not recommended for the beginner. There are established wholesale markets for mushrooms.

* PRICING DECISION * Prices play a vital role in the regulation of the entire spectrum of economic activities. A competitive economic system is essentially based on price mechanism. particularly in smallscale industries.  Influencing factors:  Cost of production  Cost of Raw-materials  Prevailing demand  Competitors price  Pricing Method  Cost + Pricing . Prices serve as guide posts in : (i) (ii) (iii) (iv) (v) Organising production Fixing standards [quality] The distribution of the product Providing for economic maintenance & progress. Adjusting consumption over short periods.

20.000 per month  Tools:  Sign boards  Hoardings  Catalogs  Printed materials  Other materials of social group . decreasing popularity for that purpose to increase the quick sales promotion.* PROMOTION DECISION * To increase the sales volume is also an important marketing goal.  Objectives:  Brand awareness  Brand preference  Brand loyalty  Budget: Rs. When any company is facing some marketing problem like decreasing sales volume.

The soil & portion carrying any microbial flora is then cut off/removed with the help of a sharp edge stainless steel knife/blade.5 cm as “B” grade. shriveled & browned mushrooms are discarded & only the healthy white & tight buttons are selected & separated into 2 grades. Commercially. etc. Diameter beyond 2. mushrooms are canned in brine. cm with compact head as “A” & cap.5. a) PICKING: Mushrooms are picked at button stage [cap. . Diameter up to 2.5-1 cm.m. damaged/bruised.5 c.e. long. The stalk length should preferably be kept 0. The process involves the following steps. Cap. Diameter 2-2. soil.] by gentle hand twisting.* PRODUCTION PROCESS * While button mushroom (Agarious bisporus) are preferred over other types of mushrooms for canning. b) Sorting & granding: Diseased. i. without damaging or rubbing them excessively. c) Washing : Graded mushrooms are thoroughly washed 3-4 times in cold running water to remove adhering dirt.

because the leaching losses in boiling water had been estimated to be about 30%. e) Filling of cans: Mushrooms are commercially packed in 2 can sizes i. reduces processing time & enhances the shelf life of canned mushrooms. The blanched mushrooms are filled into cans with declared drain weight i.5 cans are liked by boteliers. It also inactivates micro-organisms & removes the air from the raw-materials to achieve a satisfactory & uniform pack. 1% sugar & 0. However. Mushrooms are blanched in boiling water for 2-3 minutes followed by immediate cooling in cold water. .d) Blanching: To inhibit enzymatic activity blanching is necessary. A-1 tall can & A-2.05% citric acid is added up to the brim of the can. to reduce leaching losses.5 A-1 tall cans are preferred by retailers while A-2.5 can.e. Brining adds flavour to the product. steam blanching is preferred. f) Filling of cans: After filling the cans with mushrooms strained hot brine solution of 2% common salt. 440 gms. exporters & other establishments. In A-2.e.

The shorter the tunnel. cans are exhausted to remove any entrapped air & other accumulated gases from the product to ensure a longer shelf life. i) Processing/sterilization: Processing. j) Cooling: Cooling of cans is done immediately after sterilization in cold running water to room temperature in . is an indispensable unit operation in canning. for areas like shimla.g) Exausting: After brining. However. also designated as sterilization. processing time for A-2. cans are sealed with the help of a double seamer to get hermetically sealed container. This is accomplished by processing the hermetically sealed cans at a pressure of 15lbs PSI for a specified period of time depending upon the size of can & altitude of processing place. Exhausting can also be performed by placing the filled cans in boiling water till temperature of he center of can reaches 85-90o c for 1-2 mts. Cans filled with brine solution are fed to the exhaust box for a specified period of time depending upon the length of exhaust tunnel & size of container. the longer will be the time required for exhausting. h) Seaming/can closing: Immediately after exhausting. Sealed cans are then placed in upside down position to sterilize the closed lids.5 size cans is recommended to be 45 minutes.

Prevention of food ?adulteration [Regulation] Act. . leakage. 1975. k) Labelling & Storage: The cooled cans are stored in a cool dry place & smeared with grease to remove any adhering moisture from he can body to avoid rusting cans are kept at ambient temperature for 8-10 days to check any swell.order to give an abrupt shock to the micro-organisms to get rid of their adverse activities. Before the cans are exposed for sale. puffing & other disorders before labeling. proper labeling is done to meet staturory requirements of fruit products order 1955.

 PRODUCTION CAPACITY [PER ANNUM] a) Quantity: 9.000 A-2. 445.00. HACCP.P. 1955 & prevention of food Adulteration Act. The canned mushrooms should conform to the specification laid down in F. Bahadurshah zafar Marg.QUALITY CONTROL AND STANDARDS The specification of fruit products order. New Delhi-110002. 1955. ISO series standards are available with the Bureau of Indian standards from their head quarters office: 9.5 Size cans b) Value : Rs. 1954 certification are mandatory.50 lakhs  MOTIVE POWER 30 KW . ISO-14000 series & European norms series standards promise a frame-work which may guide the entrepreneurs towards fulfillment of a commitment of quality of products.O. The ISO 9000-2000.

The provision of such treatment has been made in the profile. washing. . blanching of raw-materials. the water effluent in this industry is generated during cleaning. However. pre-treatment.* POLLUTION CONTROL * The entrepreneurs are advised to contact concerned state pollution control Board for detailed guidance in the matter. It is advisable to test the water discharge as per specification laid down by the Bureau of Indian Standards.

*ENERGY CONSERVATION* Although the energy requirement is small yet some important points for conservation of energy are given below: 1) In electrical installations appropriate electric motors should be used & properly installed. . 2) There should be no leakage of steam from pipe line.

No. 5. Particular Fixed Capital details  Land & Building  Machinery & Equipments  Pre-operative Expenses Working capital details Pg. 4.  Personnel  Raw-materials  Utilities  Other Contingent Expenses 3.* FINANCIAL ASPECTS* INDEX No. 2. Sources of finance Interest on Capital Depreciation Details . 1.

@250 per sq.50 goods 100 sq. 2.mtr.*FIXED CAPITAL DETAILS * 1) Land & Building No. mtr 150 sq.50 1. Land 1000 sq. Land & Building Area Rate (in Rs) Amt. mtr. 17. mtr Total 20. mtr. mtr. Build up area  Factory shed  Raw-material store  Finished store  Others 700 sq.00 . (in lakhs) 2. 350 sq. 100 sq. mtr. mtr @ 2500 per sq.

5. Thermometer. tank each of 380 * 1140 mm complete with 2 trays of size 1015 mm * 350 mm * 880mm & the top folds ot trays 30 mm * 12 mm & S.in 1. Canning retorts size-810 * 915 mm & 5 mm thick with dia.S. S. still Tables size-6” * 3” @ Rs.S.577 2 1 lakhs) 0. pressure gauge. etc.268 0.2) Machinary & Equipments: No. @ Rs.660 .S.S. 2 0.536 0. Blanching equipments consisting of 3 S.700 1 0. Description Qty. Amt (Rs. 13.400 Washing machine Rotary Rod washer equipped with spray arrangement collection 3. Exhaust box tunnel of 3962 mm long with 2 HP electric motor with reduction gear boxes to accommodate 4 cans of A-2.200 each. of tank. 2. tank etc. steam coil 25 mm along 3 slides 4. tilting type steam Jacketed kettle (capacity 50 Gallons) Straight line exhaust box. 49. S.5 size at a 6. time.984 1 1 0. safety valve.

6600 each Can reformer for reforming flattened can body Hanger with one change part. 15.180 0.208 0./hr. Can tester pneumatically operated with 2 pressure cylinders & water tanks.230 L. box streping machine etc.850 0. Ft. 1. Crates for canning retorts @ Rs. change part of the above Flage rectifier Semi automatic can seamer Add1.200 3.500 0.538 0. pealing.065 0. (b) Laboratory equipments such as-weighing balance.500 0.000 . 14. 8 1 1 1 1 1 1 1 1 1 1 1 100 1 1 L.450 0. (a) Miscellaneous equipments such as buckets. Each. 12. 8. Cold storage cap-2 tonnes area 1500 cu.505 0.140 0.S. Concrete tank lined with tiles size (8’ * 8’ * 3. Wide mouthed empty plastic container @ Rs. Add1. 13.150 1. 11. dehydrator etc. cutting.5) Steam Boiler (oil fired) capacity 500 kgs. weighing balance Trays. 16. knives. change part for the above Water storage tanks (plastic) capacity 15Kl. 9.7. 19. 18. 0.000 1. 17. change part of the above Can end embossing machine Add1.528 0. 10.145 1.S. 150 each-capacity 50 kgs.

S. & other charges @ 10% • Erection & electrification charges @ 10% • Cost of office equipment including almirah office furniture.264 1.526 1. forwarding C.000 19.20.350 15. Total L. computers etc. 0.T.526 1. Total • Packaging. Pollution control equipments discharge of water-treatment tank.066 .S.316 3) Pre-Operative expenses 0.750 * Total fixed Investment (i + ii + iii) = 40.

04 Total 0.04 0.03 0.03 0.* WORKING CAPITAL DETAILS * [PER MONTH] i) Personnel * Administration * No. In lakhs) 1 2 3 4 5 6 7 8 Manager Purchase Assistant Salesman Accountant Store keeper/Clerk Computer operator Peon Watchman 1 1 3 1 1 1 1 2 8000 4000 4000 4000 3000 3000 2000 2000 0. Designation No.04 0.08 0. Salary Total (Rs.40 .02 0.12 0.

In 1 2 3 4 5 6 7 8 Plant manager Food Technologist Production Supervision Skilled Workers Foreman Boiler Attendant Unskilled workers Sweeper Total Grand Total (Administration + Technical) (0.04 0. Designation No.18 0.06 0.03 0.52) Peark @ 15% Total (ii) Raw-Material 1 1 1 2 1 1 9 1 8000 7000 4000 3000 4000 3000 2000 2000 lakhs) 0.08 0. Salary Total (Rs.* TECHNICAL * No.058 .138 1.07 0.04 0.02 0.92 0.40 + 0.52 0.

S. Labels etc Total . sugar. gums. Particulars Qty. 35. preservatives.15 30.94 0.t. L. 5 6 Mushroom “A” grade Salt.000 P.S. citric 55 tonnes Acid. 75.00 each 15. L. Rate (in Rs) Amt (Rs.00 each - chemicals.000 6250 L. A-21/2 Can Carton Boxes Cabels.S.00 0. 12. In lakhs) 19.85 0. Boxes. Scrapping etc.44 1 2 3 4. box.25 0.25 9.No.

Ltr.162 2. 1/.487 0. Ltr @ Rs. 3 (30 * 8 *25 * 0. 3. Fuel (Furnace Oil) 4000 Ltr @ Rs.K.005 0. Power 30 KW units @ Rs. Total or Say 0.(iii) * Utilities * No.50 . Utilities Amt. 8 Water 500 K.320 0.90 * 3) 0. (Rs. In lakhs) 1.

40 * Total recurring expenses is Rs. 1.(iv) * Other contingent Expenses * No. 5.14 0.390 lakhs (per month) ( i + ii + iii + iv ) * (v) *Working Capital for 3 months =Rs. 7.2 0. 4. In lakhs) 0.03 0.1 0. 32.08 0. 3. 6. Micellaneous Total Amt (Rs. Telephone Bills etc.170 * TOTAL CAPITAL INVESTMENT * .10 0. Taxes. 97. 2.2 0. Particulars Postage & Stationary Consumable stores Repair & Maintenance Transport Charges Advertisement & Publicity Insurance.

2.No.23 . 1. Particulars Own Capital Loan from bank Total Contribution 40% 60% Amt (Rs.89 82. In lakhs) 54.236 * SOURCES OF FINANCE * No. In lakhs) (i) (ii) Fixed capital Working capital (For 3 months) 40.34 137.170 Total 137. Total Capital Investment Amt (Rs.066 97.

82 * Depriciation Details * No.875 0. In lakhs) (a) Depriciation on machinery & equipment @ 10%.526 (b) (c) Depriciation on building @ 5% Depriciation on office furniture. 1. Paticulars Rate Amt (Rs. fixture etc. Particulars Amt (Rs. In lakhs) 1. Owned Capital Bank loan from ICICI Total 9% 12% 4.94 9. @ 20% 0. 2.* Interest on Capital * No.200 Total 2.601 .88 14.

No. Cost of Production 2.* Financial Analysis * Index No. Sales turnover 3. 1. Particular Pg. Fixed cost .

2. In lakhs 1. fixture etc. Total recurring expenditure (per year) Depreciation on machinery & Equipment @ 10% 388.213 Total 410.526 3. Cost of Production Amt (Rs. 4. @ 20% 0.200 5. Depreciation on Building @ 5% Depreciation on office furniture.494 . Interest on total Investment @ 14% 19.1.68 1.] * Cost of Production * No.875 0.

00 2.000 55 495. brokerage & Marketing expenses - 10% 49.] * Sales – turn Over * No.2.00. Rate Amt (Rs. Canned Mushrooms A-2 ½ 9.50 Total 445.50 . Commission. Item Qty. In lakhs) 1.

Total Amt (Rs. Interest on total Investment Insurance 40% of salary & wages 40% of other contingent expenses Power charges.584 0. In lakhs) 1.213 0.3] * Fixed Cost * No. (a) (b) (c) (d) (e) (f) (g) (h) Fixed Cost Depriciation on machinery & Equipments Depriciation on building Depriciation on office furniture & fixtures.534 .360 28.360 4.526 0.200 19.416 1.875 0.

69 24.40 45.15 = P = . As blood is important for like.29 Profitability = Profit x 100 salts 45. * Profitability Ratio * Particular Sales Less : Cost of production [per annum] Earning before interest & Tax Less : Interest on Capital Profit before tax Less : Tax (35%) Profit after Tax Amt 495.494 84.000 410. same profit is important for the survival of any business.00 9.* Profitability analysis * Profit is the life blood of any business.82 69.29 x 100 495.506 14.

91 % say 45 % .E. Break – even point is the level of activity at which there is neither profit nor loss.54 = 44. = = Break even point Fixed cost x 100 Fixed cost + Profit = 28.* Break – even analysis * Changing business situation have led to changing decision situations.534 x 100 63. analysis being a simple but effective tool has been used in cost analysis of single product. multiple products or composite products. B.

006 x 100 40.50 = 7.236 = 25.51%. 2) Rate of Return Ratio: = Net profit (per year) x 100 Total investment = 35.006 x 100 445.006 = 87.50 % .* Computation of ratios * The term ratio refers to a numerical or quantities relationship between 2 terms or variables. 1) Net Profit Ratio : = Net Profit ( Per year) x 100 Total over (per year) = 35. 3) Return on fixed assets : = Net profit (per year) x 100 Total fixed assets = 35.86 %.006 x 100 137.

the level of risk is only for some extent. . Therefore. So. in a canned mushroom business there is some risk in a local market but it is covered by the exporting of canned mushroom out – side India.* Risk Factors * Risk is another name of business. It is not affected the unit at a higher level. it is also there is mushroom business. But as we have earlier mentioned that this business has very bright future because it is a 100% Export – Orienterd unit. However.

rawmaterials. . 4) EOU/EPZ units will be eligible for concessional rent for lease of industrial plot & standard design factory building sheds. office equipments & consumables for office equipments. material handling equipments etc.* Benefits for export – oriented units * Some of the benefits for export oriented units are mentioned below: 1) The unit may import free of duty capital goods. components prototypes. 2) An export oriented may unit/export export processing zone [EOU/EPZ] unit goods manufactured through an export House/Trading House/Star trading House. 3) Foreign equity upro 100% is permissible in case of EOU’s & EPZ units.

Trading House or star Trading House status later. Of operations. 6) Net foreign exchange earned by an EOU/EPZ unit can be clabbed. During the 1st eight yrs. . with the net foreign exchange of its parent/associate company in the domestic tariff area for the purpose of according export House.5) EOU’s/EPZ units will be exempted from payment of corporate income tax for a block of 5 yrs.

. The following are the future prospects or future plan of canned mushrooms.  To get more profit.  Expansion in existing market & cover the entire world.  Development of various branches all over the world.* Future Prospects * The modern world is fast growing. New innovation of yesterday is old for today. it is a past & tomorrow is a present.

nagar. post box-17426 J.O. Rohtak Read. P-25. M/S Raylans Metal works. New Delhi-1110001 4. 65/11. Kondivita lane. P. 1510. M/S Somani International Corporation. Mumbai-400021. 2. M/S Narang Corporation. maker chamber-v. Nariman Point.B. Andheri(E) Mumbai – 400059 .Sen Berry & Company.-110005 3.* LIST OF SUPPLIERS *  Address of machinery & Equipments Suppliers. New Delhi. [Below Madras Hotel]. M/S B. connaught place. 1. Karol Bagh.

Barotiwala. Solan (H. Bal Rajeshwar Road.. Cowel Can ltd. Industrial Area. Office L.P. New-Delhi-110002 . 4.) 2) M/S Divecha Glass Industries.* Addresses of raw-materials & Packaging material Suppliers *  CANS 1) M/S. dist. Ltd.B. Mulund (w) 3) M/S Poysha Industries Co. 249. Nehru House.S Marg. Bahadurshah zafar marg.

Sai Chambers.-2.B. R. Mumbai-400009. * Material Suppliers * Local Market . 367-369. 3) M/S Sesu Trading corporation. No. (4th floor). CHEMICALS 1) M/S S. Mumbai-400003 2) M/S Devendra Cottage Industries Sector -22-4. st. Narsi Natha Street. Ganga Vihar. 94. Chandigarh. Mehta & Associates 2-B. Kazi Sayed.

low in calories. So. Govt.* CONCLUSION * Future of quality mushroom is very good. should support these kinds of small scale units to serve the public with quantitative mushrooms. vitamins. It has 4. It is an alternate choice for weight conscious people anaemic patients. etc. mushroom has a very bulky demand not only in a national market but on a International market too. vegetable such as beans. . minerals & a rich source of folic acid. green. Because now a days people are more conscious about their diet & health.9% protein content which is more than cow milk. Mushrooms are full of nutrients. high in proteins.

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