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BUSINESS PLAN

SUBMITTED TO: MS RADHIKA MEENAKSHI


SUBMITTED BY: SECTION A
SAURABH YADAV 41

AMITY SCHOOL OF BUSINESS


CONTENT OF BUSINESS PLAN

Introductory page
Executive summary
Industry analysis- SWOT, internal and external
environment
Description of the venture
Production plan
Market plan
Risk assessment
Financial plan
Appendix
COMPANY INFORMATION

NAME OF THE COMPANY: METALAX PVT. LTD.


NAME OF THE INNOVATIVE PRODUCT: DETNO TRACKER
MODEL NO. STS092733

NATURE OF BUSINESS:
Manufacturers of all kinds of detecting devices for security
and surveillance. Camera, CCTV, metal detectors, x-ray
machines

VISION:
Is to become 'a world-class innovative engineering
enterprise committed to enhancing stakeholder value'.

MISSION:
“The purpose of Metalax is to honourably serve the
needs of the community by providing products and
services of superior quality and technology to our
customers; to do this so as to earn an adequate profit
which is required for the total enterprise to grow; and by
so doing provide the opportunity for our employees and
shareholders to achieve their reasonable personal
objectives.”
Address : Opp. Goa Flour Mill, Devsuvaddo, Chicalim,

City : Panji

State : Goa

Country : India

Phone : 91-832-2541467

Fax : 91-832-2541214

Email Address : contact@metalax.com

Mobile : +919422059636

Web Site : http://www.metalax.com

ORGANISATIONAL STRUCTURE

CEO: MR Saurabh Yadav

Has a work experience of 10 years as the director of ‘BAJAJ IRON


STORE, a metal detector producing company in Delhi and 2 years as
the Managing Director at METALAX OVT LTD.

MANAGING DIRECTOR: MR Bharat Batra

Has a work experience of 6 years as the director of SECURITY


EQUIPPERS INDIA and 4 years as Managing Director of METALAX
PVT LTD.

DIRECTOR: MR Galib.

Has a work experience of 8 years as the company secretary at


METALAX PVT LTD.
BACKGROUND OF THE COMPANY

The parent company name is METALAX PVT. LTD.


We make all kinds of security and surveillance devices such as
hand metal detectors, walk through metal detectors, CCTV, fire
and gas detection devices etc.
Our company was established in the year 2000, and today it is
one of the most reputed and well known company with an
established name and image.

We saw an opportunity of making walkthrough metal detectors,


with x-ray machines attached to it. It would be foldable, so that
it can be easily carried by a person to any place.

Hence we have decided to bank on this innovative product


which we have named DETNO TRACKER. It would be
available in various sizes and intensity depending on the needs
of the customers,
Types of Metal Detector made by the company

• Pulse Induction (PI) metal detectors send pulses of


electromagnetic fields into the ground. The interference, resulting
from encountering a metal object, produces a change in the field
emitted. This is detected by the device which alerts the user
through tones.

• Very Low Frequency (VLF) metal detectors produce an


electromagnetic field which is directed into the ground (sound
familiar?). When this field makes contact with an object, the object
produces its own field which is detected by the receiver. By tuning
to specific frequencies, it can differentiate between different
metals.

• Beat Frequency Oscillation (BFO) metal detectors produce an


electromagnetic field which is directed into the ground (you get the
idea). This field is composed of radio waves. The object interferes
with the radio waves and changes the resulting pitch.

• All Purpose Metal Detectors - (Coins, Jewellery, etc)

• Beach/Surf/Water Metal Detectors

• Gold Metal Detectors

• Relic Metal Detectors

• 2-Box Deep Searching Metal Detectors

• Professional land/Water Metal Detectors

• Commercial/Industrial Metal Detectors

• Used/Demo/Refurbished Metal Detectors


Metal detector

X-Ray System
Pulse induction

Micro Scan Metal Detector

Micro Scan Metal Detector


EXECUTIVE SUMMARY
The company METALAX PVT LTD has come out with an innovative
product, by the name of DETNO TRACKER, which is a walkthrough
security device, combining the functioning of a metal detector as
well as an x-ray machine.

 The production plant has been set up in Goa, Panaji on 10


acres of land, with an investment of Rs 130 crores. The
financing of the product includes loan from the Goa bank,
entrepreneurs own capital, and the venture capitalist. 1ST
YEAR: LOSS OF Rs 7, 90, 00,000

 SUBSEQUENT 2 YEARS: PROFIT OF Rs 6-20 CRORE


EXPECTED.

 SOURCES OF FINANCE

 RS 30: PROVIDED BY ENTREPRENEURS THEMSELVES

 RS 40: Economic Development Corporation of Goa and Goa


Industrial Development Corporation (Interest rate 14% p.a)

 RS 60: VENTURE CAPITALIST. (Return of 25% on profits)

Walk through and hand held metal detectors are the two
principal devices used for metal detection. Last year sales of
walk through and hand held metal detectors totalled about Rs
25000000. Walk through accounted for 60% of the total
market value while hand held metal detectors made up the
remaining 40%. So it is evident that there is a great scope for
development in this field in India and there is a lot of potential
yet to be tapped in India.
INTRODUCTION

In current scenario, where the travellers travel via airplanes and trains,
the airports and railway stations pose a great threat to the security and
convenience of the travellers, who are always under the gun point of
terrorist attacks or other anti-social activities. Public places and areas for
entertainment such as malls, theatre, hospitals, schools etc also fall
under the category of being the prime targets for terrorist activities.

Under such conditions, the industry for security devices has been on a
steady rise in India, for the past many years. The demand for devices
such as CC-Cameras, Metal Detectors, Fire and Gas Detection devices
etc has been increasing at a fast pace, contributing to the need for more
technologically advanced and efficient security devices.

On one hand where these devices have proven efficient in answering to


the various security threats, on the other hand it cannot be overruled
that the presence of such security checks at various terminals at the
airports and other places cause a lot of inconvenience to the customers.
At the time of security checks and boarding the flights, the travellers
have to undergo a long and cumbersome process of getting themselves
and their belongings scrutinized by security devices such as metal
detectors and X-ray machines. Such process involves a great deal of
time and effort , where the travellers have to remove their shoes, socks,
watches and other belongings to be scrutinized by the X-ray machines,
after they pass through the metal detectors.

This inconvenience has been overlooked for many years and till today
no devices has been formed to reduce such inconvenience keeping the
safety aspects in mind. From the point of view of security officials, there
is a need for metal detectors which are light weight and are capable of
relatively easy disassembly, transportation, and re-assembly for use at a
different location.
Previous scenario:

As indicated above, walkthrough metal detectors are quite old and well
known in the art. Obviously, at this point in our country's history, the
importance of metal detectors has perhaps never been greater. While
such metal detectors have been known and used for many years in
facilities such as airports and government buildings, use of walkthrough
metal detectors has recently been expanded to a wide variety of public
facilities, including, for example, office buildings and public schools.

With regard to current state-of-the-art walkthrough metal detectors, they


are typically a relatively permanent installation. That is to say, the device
comprises an inverted U-shaped configuration that is erected and
installed in a substantially permanent manner at the entry point where
persons and objects are to be screened.

It is therefore apparent that there is a need in the art for an improved


metal detector capable of relatively easy disassembly, transportation,
and re-assembly for use at a different location. Such an improved metal
detector must be of relatively light weight, preferably capable of being
carried by one person. Of course, such an improved metal detector must
also provide for ease of re-assembly without damage to the detector's
circuitry, so that the reliability of its use is not compromised.

Present:

The present invention comprises an improvement in metal detectors of


the type where persons and objects pass through a magnetic field
created by circuitry in the detector whereby the presence of metal may
be determined. The improvement comprises a foldable enclosure for
the detector's circuitry, that foldable enclosure comprising a plurality of
detector panels and means for connecting each one of the panels to at
least one other of the panels, whereby the foldable enclosure may be
erected to define a substantially inverted U-shaped configuration having
a closed top, opposing legs extending downwardly from the top, and an
open bottom defined by the space between the legs. The improvement
further comprises a base dimensioned and configured to receive the
erected enclosure, whereby the metal detector may be erected and
secured in an operative position.
Looking into the future

Now, along with the magnetic field metal detectors, which are also
foldable and easy to carry, we will be adding another dimension to it in
the form of x-ray machine attached to the metal detector.

When a person passes through the metal detector, the sensors will
sense all the harmful and harmless metal accessories worn and carried
by the passenger and the tv will show the various accessories carried by
the passenger, without him actually removing it and passing it through
another machine, causing inconvenience and time.
INDUSTRY
ANALYSIS
SWOT
STRENGTHS

The innovation is in itself strength.

This is one of its kind walkthrough metal detectors, which also has an x-
ray machine providing convenience, ease to the travellers and also the
security at the airport and various agencies.

• Saves time

• Convenience enhancer

• Traveller satisfaction: as they don’t have to remove all their metal


accessories.

• Ease of use

• It is also foldable, which can be carried by a single person and


shifted to anyplace where the need may be.

• The detector will be made to order and customised based on the


following criteria’s.

• Intensity

• Size

• Purpose
• No competition- as it is an innovative product, new of its kind, no
company today is providing such a product, so currently, it is the
strength that the our company would enjoy.

• The company would follow total quality management and will


comply with the quality standards to produce the products, which
would be safe to use.

WEAKNESS

• Since it is a highly technical and complex product, it needs heavy


investment in R&D.

• Technical, expert personnel have to be recruited who have the


knowledge, competency and the requisite skills.

• Training and development programmes have to be organised for


the employees, which would take much of time and cost.

• Long gestation period, as it is a capital intensive industry, with


huge investment and the machines are made to order.

OPPORTUNITIES
The importance of metal detectors in today's society is growing. With
this growth one can only speculate that there will be great advances in
metal detector technology within the coming years. Simply put as the
demand for metal detectors grows the technology will also grow.

Metal detectors for security and industry have also made some
exceptional advances and will continue to in the coming years.
Technologies will be developed to not only detect metals, but also
identify them with a visual outline of the metals detected. These
advances will make our lives much safer and more secure.

In addition to Government organizations and embassies, end users


of sensing and detection devices encompass a large number of
diversified groups of organizations deemed to be under security threat
either to lives or property.

They include schools, prisons, malls, multiplexes, hospitals, banks


and financial institutions, gold bullion/mint corporations, high
security printing businesses, hotels, educational institutions, gem
and diamond cutting enterprises, high rise office buildings, oil
refineries and petrochemical plants, large manufacturing plants,
entertainment venues and condominiums, etc.

• There may be as many as 200 million guns in private possession.


No doubt the country would be safer if there were none, but efforts
now to reduce the flow of guns would have little effect. Those guns
that are used for crime are often stolen or borrowed, so requiring
licenses or training would make no difference. Owners could be
made liable if their guns were borrowed and then used in a crime.
Such laws might be useful, but it is hard to imagine that they would
have prevented the school shootings that occurred in the last few
years.
• Put armed guards in schools. There was a sheriff's deputy
assigned to Columbine High School in Littleton, and he exchanged
shots with one of the gunmen. How many more guards are
needed?
• Put metal detectors at school entrances. This might do some
good, but it would not have affected the murders last year in the
school parking lot in Fayetteville, Tenn., or the lethal gunfire from
the woods surrounding a school in Jonesboro, Ark

• This product can be used in the railway stations as they do not


have any x-ray machines due to cost and time factor. With our
detectors placed in the railway station, the passengers will just
have to pass through them, which will also do the work of x-raying
them and locatinn any guns or bombs which they might be
carrying. This can be done with ease and in very less time.

• The overall market value of sensing and detection devices in India


is estimated at more than $100 million per year. The market is
expected to grow more than 30% in the next few years, mainly as
a result of increasing spending for greater security and safety of
life and property in both public and private sectors.

• The no. of malls and multiplexes in India is increasing every year.


All the malls and multiplexes have regulated strict safety and
security norms after the terror attacks.

• We can also export out detectors to other countries as the prices


would be lower when compared on an international basis.

• The overall market value of sensing and detection devices in India


is estimated at more than $100 million per year. The market is
expected to grow more than 30% in the next few years, mainly as
a result of increasing spending for greater security and safety of
life and property in both public and private sectors.

• Demand for metal detectors and CCTV is on the rise as the Indian
Government upgrades security measures and technologies and
expands safety coverage areas in response to both global and
domestic requirements.

• In addition, demand among business operators is also on the rise


as their needs for better prevention for potential loss and damages
to lives and property increases.
• American sensing and detection devices compete particularly
well in the high-end market, which accounts for 70% of the
market. Quality and technology that result in greater reliability are
the key competitive advantage for American products in this
market segment where cost of failure of the devices is formidable.
Hence, India offers good export opportunities for American
sensing and detection devices. However, American suppliers
need to identify capable distributor(s) in the country to effectively
explore opportunities and successfully market their products.

• In contrast, U.S. and European makes do not compete well in


the lower end segment of the market where price is the
market’s prime consideration. Makes from Taiwan, Korea,
China and India dominate this segment of the market, which
accounts for 30% of the overall sensing and detection devices
market value. Average price of a typical product in this segment is
about one third of a U.S. one.

THREAT

• A major threat is the threat of the innovation being copied by


the competition. Though the innovation has been patented,
but the competition may be quick enough to make a similar
product.

• The technological environment is changing with new innovations


and R&D taking place, hence there is threat of obsolescence.

• U.S. makes together with European ones are leaders in the


high-end segment of the detection and sensing devices
market because of their technology and product quality. Their
prime target market is composed of Government organizations, hi-
threat public areas, embassies, large corporations, large
manufacturing operations, of which cost of failure to prevent
loss /damage of and/or to protect the intended property is
formidable. As a result, reliability and capability of U.S. and
European products are their prime competitive advantages.

• Furthermore, the use of American safety standards in high


hazard industries gives U.S makes a distinct advantage in markets
such as refineries and the petrochemicals industry. This is
because safety standards for these industries are set according to
that of the National Fire Protection Association (NFPA) where
specifications of safety-related products and equipment are based
on UL and ANSI standard codes. U.S. detection and sensing
devices are qualified based on the same standards as those
specified in the design and are at major advantage to dominate the
segment.

ENVIRONMENT SCANNING

ECONOMIC ENVIRONMENT

Inflation-

Will affect maintenance cost, fuel, labour cost, personnel handling, T&D.

SOCIAL ENVIRONMENT

It will provide national safety, in schools, prisons, malls, multiplexes,


hospitals, banks and financial institutions, gold bullion/mint
corporations, high security printing businesses, hotels,
educational institutions, gem and diamond cutting enterprises,
high rise office buildings, oil refineries and petrochemical plants,
large manufacturing plants, entertainment venues and
condominiums, etc.

• Crime rate will reduce

• Terror control

• Public security

• Efficiency

• Cost reduction- electricity consumption, 2 machines used together

• Convenience to security staff and also the travellers.

• Security check fastened saving time

TECHNOLOGICAL ENVIRONMENT

It is a great technological advancement beneficial for country, enhancing


the security.

A major technological impact may be in the form of continuous


innovations and changes taking place, for which the company has to
continuously upgrade and enhance itself to prevent obsolescence.

LEGAL ENIVRONMENT-
• Comply with the Indian and Goa government regulation, policy and
regulations.

• Acquire Patenting rights through legally complying with the rules


and regulations of the patenting agency,

• Acquire the ISO standards and quality marks and control from the
issuing agency.

DESCRIPTION OF THE VENTURE


The organisation will set up in Goa, (Panji) as it is a lucrative place
to set up a capital intensive business unit.

• The Government is gearing up for accelerated industrial


development and overall economic growth. While drafting this
policy, proper environmental concern, social infrastructure, well
being of its people and needs of existing industries have been
taken into consideration.

• Over the years, these advantages have reflected in the socio-


economic indicators of the State, which are simply among the very
best in the country. It has a high total literacy rate of 82.32%, with
female literacy at an admirable 75.51% and male 88.88%. The
birth rate (per thousand) is 17.85 and the death rate (per
thousand) is at a low of 7.16. The infant mortality rate too is among
the lowest in the country - at 13.99 (per thousand). The State has
a wide coverage of public health centres and educational
institutions.

• With a well-spread network of banking and financial institutions,


the State is in an ideal position to attract investments. In fact, Goa
has one of the best deposits to credit ratios, which means that
there is ample money with the institutions to advance for economic
development. The per capita deposit is around Rs. 70,915/- per
annum, whereas the per capita income at current prices is around
Rs. 61,301/- per annum.

• Goa is the only State in the country which possesses the


distinction of achieving high level of both economic and social
development. Average economic growth of 10% per annum, the
highest per capita income (Rs. 61,301/- per annum) and high level
of Social Infrastructure Indicators are the testimony for the same.
Thus, the State has extremely favourable climate to aim to
become a “Model State”.

• Goa is strategically located with good infrastructure facilities with a


centrally located airport, a seaport, connectivity by excellent road
network as also other essential infrastructure like Container
Freight Station etc. The State boasts of one of the country’s
highest tele-densities. Fibre optic connectivity too has spread its
network across the State, bringing state of art telecommunication
to the people. Every village in the State is electrified. As regards
power for the industry, there is sufficient power reserve and the
tariff has been pegged at very reasonable rates.

PROCEDURE FOR LAND ALLOTMENT/REGISTRATION

(i) The existing industrial estates will be further improved and land
allotment process will be expedited by simplifying the procedures. The
Government has substantially reduced the stamp duty payable by the
industrial units.
(a) It is also proposed to increase the FSI (Floor Space Index) in
industrial estates and non-urban areas for the benefit of the industries.

(b) The computerization of registration formalities that is in the process


will simplify and expedite the registration process.

(c) The existing Industrial Estates have already been notified and kept
outside the purview of local authorities.

INFRASTRUCTURE DEVELOPMENT (refer to page 16 of appendix)

A sound infrastructure is the backbone of a healthy economy. The State


already possesses excellent infrastructure which include the highest
network density of roads, connectivity by rail to all parts of the country,
an international airport (with another international airport in the pipeline)
and a natural port. The State is also power surplus and has a strong
transmission and distribution network which is being further modernized.
The Government has already reduced the tariff by about 7%. There is
ample supply of water. Efforts will be made to ensure timely and
perennial distribution of water throughout the year.

GOVERNMENT INSTITUTIONS

• INDUSTRIAL TRAINING INSTITUTES ( refer to page 13 of


appendix)
• TRAINING CUM PRODUCTION UNITS ( refer to page 13)
• TECHNICAL INSTITUTIONS ( refer to page 14)

LABOUR REFORMS (refer to page 18)

INCENTIVES:

(i) Goa offers innumerable advantages to investors in terms of social


and
physical infrastructure. In addition, various incentives/subsidy schemes
are already in operation.
(ii) To further boost investment in industrial sector, it is proposed to offer
a host of incentives and investor friendly measures. These measures
would not only provide a competitive advantage to State as an attractive
investment destination but also sustain the long term presence of
industries.

The following incentives/subsidies and investor friendly


measures are proposed:

A. EMPLOYMENT SUBSIDY:

B.CAPITAL CONTRIBUTION SCHEME:

C.SHARE CAPITAL TO SELF EMPLOYED / LOCAL


ENTREPRENEURS:

D. INTEREST SUBSIDY SCHEME:

E. CERTIFICATION/PATENTING INCENTIVE:

G. MEDICLAIM FACILITIES:

J. EXPORT MARKET DEVELOPMENT SCHEME:

K. EARLY BIRD OFFER:

( refer to page 20 onwards for the detailed explanation)

DESCRIPTION OF OUR PRODUCT

A thought form of a Japanese author TOKUTSU HARUNORI (Ishida


Co. Ltd.JPN)

Journal Title: JPI Journal

VOL.41: NO.5: PAGE: 420 – 24 (2003)


Figure & Table & Reference: FIG.4

Abstract: More attention has been paid to foreign objects mingled in


food in the last few years, which also increased the demand for metal
detectors to be installed in food production lines. To be more specific,
the demand for metal detectors includes inspection sensitivity,
traceability as quality control devices as well as consideration for
hygiene and safety.

“Since its principle defers from that of x-ray foreign object


detectors, it can be predicted that both metal and x-ray detectors
will co-exist in the future.”

Source: sciencelinks.jp

In an attempt of carrying forward the vision of the Japanese author, and


strive for creating newer and better security devices by the R&D
department, the co. has innovated a product by merging the efficiencies
and workings of the metal detectors and the X-ray machines. The
innovation has been names as METALEX, a security testing device.

About the Innovation

At present the metal detectors and the X-ray machines function on two
different platforms at the airports. The travellers first pass through the
U-shaped metal detectors for any metal devices and later their
belonging such as shoes, watch, mobile phones, laptop, spectacles etc
are scrutinized for any sharp or harmful equipments or devices through
the x- ray machines.
Metalex combines the functioning of both the metal detectors and the x-
ray machines as it checks the travellers for any metal devices and other
belongings at the same time, saving a lot of time, cost and efforts.

Functioning of the Innovation

The device Detno Tracker combines the pulse induction technology


of the metal detectors and the dual-energy X-ray technology of the
X-ray machines into a single security device.

 This technology sends powerful, short bursts (pulses) of current


through the coil of wire. Each pulse generates a brief magnetic
field. When the pulse ends, the magnetic field reverses polarity
and collapses very suddenly, resulting in a sharp electrical spike.

 This spike lasts a few microseconds (millionths of a second) and


causes another current to run through the coil. This subsequent
current is called the reflected pulse and lasts only about 30
microseconds. Another pulse is then sent and the process repeats
ranging from about 25 pulses per second to over 1,000.
 A sampling circuit in the metal detector is set to monitor the length
of the reflected pulse. By comparing it to the expected length, the
circuit can determine if another magnetic field has caused the
reflected pulse to take longer to decay.

 If the decay of the reflected pulse takes more than a few


microseconds longer than normal, there is probably a metal object
interfering with it.

 The sampling circuit sends the tiny, weak signals that it monitors to
a device call an integrator.

 The integrator reads the signals and amplifying and converting


them to direct current (DC).The DC's voltage is connected to an
audio circuit, where it is changed into a tone which acts as an
indicator when metal is detected.

While the above process is going on , the X-ray feature of the device
also works simultaneously.

As the travelers pass through Detno Tracker, electromagnetic waves fall


on their body, which are capable of penetrating through the body and
belongings of the travelers ranging 140 to 160 kilovolt peak (KVP). The
higher the KVP, the further the X-ray penetrates.
 After the X-rays pass through the item, they are picked up by a
detector. This detector then passes the X-rays on to a filter,
which blocks out the lower-energy X-rays.

 The remaining high-energy X-rays hit a second detector. A


computer circuit compares the pick-ups of the two detectors to
better represent low-energy objects, such as most organic
materials.

 Since different materials absorb X-rays at different levels, the


image on the monitor lets the machine operator see distinct items
inside your bag. Items are typically colored on the display monitor,
based on the range of energy that passes through the object, to
represent one of three main categories:
• Organic
• Inorganic
• Metal

While the colors used to signify "inorganic" and "metal" may vary
between manufacturers, all X-ray systems use shades of orange to
represent "organic." This is because most explosives are organic.
Machine operators are trained to look for suspicious items -- and not just
obviously suspicious items like guns or knives, but also anything that
could be a component of an improvised explosive device (IED).
Key benefits of the Innovation:

 Reducing power consumption to the point where it would operate


for 9 months on a set of D cells, eliminating the necessity for an
on/off switch thus preventing its alarm function from being easily
defeated.

 Design's ability to operate in an environment with a high degree of


ambient magnetic noise

 Saves cost

 Increases security and provides acute supervision.

PRODUCTION
PLAN
Production Plan

For the purpose of undertaking the production of the Innovation Detno


Tracker, Metalax Pvt Ltd has decided to set up its production plant in
Goa, in Panji, as it is already the hub metal detector manufacturing
units.
Production plan specifications:

 Nearly 33 crs investment in acquiring land in Panji, Goa

 10 acres of land @ 6000-7000 (Commercial rates) per square


yards. This accounts for nearly 3.3 crore per acre.

 The machines shall be imported from Taiwan and China as


European and American imports dominate the high price high
quality segment, while Taiwan, Korea and China dominate the
lower end of the market.

Production Quality:

Quality is considered to be the most essential factor in the growth of the


company. With us, quality is not only limited to the products but we
believe in maintaining quality throughout the production process. All the
processes at our unit conform to the international standards and are
carried out under the supervision of our quality managers.

In order to deliver superior quality metal detectors & electronic


instruments, we make sure that all the raw materials used are premium
in quality. Procured from reliable vendors, they are first tested then used
in the production process. Once the finished products are produced,
they are tested using micrometer testing machines at our in house
quality testing unit.

The finished products are stringently tested on different parameters


before being delivered to the clients. The parameters are:

 Amplifying rate
 Electricity consumption ability
 Durability
 Reliability
 Long working life
The in house & out house manufacturing unit has all the tools and
machines to facilitate the different production processes easily. Capable
of satisfying the bulk requirements of clients, our unit is fitted with best
production machines that can work for long hours. For a hindrance-free
and uninterrupted production, the machines are constantly upgraded
and maintained at regular intervals.

The co. has an in house R&D Lab and excellent Calibration Lab. All our
facilities conform to NPL/ISO standard and have NABL traceability.

Our team

We have the support of an excellent team of engineers, electronic


equipment designers and other professionals. Our team members are
highly qualified and competent professionals who have an experience of
12-15 years. Understanding the clients' needs and requirements, they
design and develop products that are cost effective and operate
effectively with minimum maintenance.

Raw material

The production process undergoes the processing of raw materials such


as:

• Steel
• Ferro-Alloys
• Bras
• Mica
• Aluminium
• Zinc
• Copper
• Copper-Nickel
• Nickel
• Silica

Suppliers:
The co. has an efficient and a wide spread distribution and suppliers
network in Goa and near by states that provide the co. with the
necessary raw parts and material to be processed. Some of such
suppliers are:

 Unique Equipments, Goa

Location:
Opposite Goa Flour Mill, Devsuvaddo, Chicalim,
Goa,
Goa, India, 403 711.

 Super Safety Services, Mumbai

Address: 5, Ground Floor, 349/353, Indu Chambers, Samuel

Street, Masjid (W),

Mumbai, Maharashtra - 400 003, India

Phone: +(91)-(22)-23473300/23473311 Fax: +(91)-(22)-

23473024
Website: http://www.supersafety.in

 Hitech Transducers & Devices - Pune

Address : A3/6,Dharamveer Park , Near Damodhar

Soy.,Chintamani Nagar.

Bibwewadi Pune 411037 India

Others are:

 Subtronics (India) Pvt Ltd


 Technofour Electronics Pvt Ltd
 Jay Instruments & Systems Pvt Ltd
 Magnetics Corporation of India. and many others
Production Process:

The production process involves economical and reliable methods of


protecting crushers and conveyers and other equipments from
potentially costly damage. This helps reducing down town and ensures
the production process stays operational.

Microprocessor based continuous level measure indicators provide


critical material feed and inventory levels required to keep the aggregate
production process running- ensuring there is always product available
for the crushing and screening process.

Product Testing

• First stage: Under laboratory conditions, will run tests on a


wide range of metal detectors using the using micrometer
testing machines. We will run the test campaigns together with
other international partners in order to assess the capabilities
of off-the-shelf new detectors. In particular, we will monitor the
following:

o The immunity and performance under environmental


stresses (vibration, temperature, moisture and
electromagnetic compatibility).
o The logistics and ergonomics aspects (dimensions,
weight (balance, moment of inertia), battery life, setup,
alarms, transport case, etc.).
o The detection capability with specific soils and mines.

• Second stage: Field tests are also conducted under realistic


conditions using the using micrometer testing machines, using
the same metal detectors as during the first stage as well as
metal detectors already in use in each region. This opportunity
is used to collect environmental data influencing the suitability
of metal detectors.
MARKET PLAN

MARKET OVERVIEW
Based on their distributors clusters, the market of detection and sensing
devices are largely classified into three basic segments that are 1) metal
detectors, 2) CCTV, and 3) fire and gas detection devices.

1) Metal Detectors: Walk through and hand held metal detectors are
the two principal devices used for metal detection. Last year sales of
walk through and hand held metal detectors totaled about $25 Million
(Baht 1000 Million). Walk through accounted for 60% of the total market
value while hand held metal detectors made up the remaining 40%.

Government offices primarily of the military and police as well as airports


have traditionally been the major buyers of metal detection devices.
However, the increasing security threat of both global and local sources
induces demand for metal detectors among an increasing number of
organizations such as embassies, banks, and commercial offices.
Moreover, new applications of metal detectors also expand their market
possibilities. Hospitals and industrial plants are the additional groups of
buyers who use hand held metal detectors beyond their traditional mean
of weapon detection. Metal detectors are used to ensure that post
surgery patients are clear of metal objects like accidentally left operating
tools in their bodies. Manufacturing plants of jewelry, and high value
nuts and bolts use metal detectors to prevent their workers from stealing
off of the work floor.

2) CCTV: Experts estimate the CCTV system to make up 70% of the


overall safety and security market. The segment has an estimated
annual value of $75 Million (Baht 2,000-3,000 Million). CCTV is the
most popular detection devices in the market either as the only detection
device used or as one of the multiple devices used. This is because
CCTV, in addition to detection, provides records that make tracking
possible if such a need ever arises.

Government Institutions are the largest group of buyers with sales in this
sector as high as 60% of the overall market. Sales made to airports is
70% of government purchase, while all other government offices makes
up the other 30% of the market. Sales to commercial institutions make
up the remaining 40% of the overall sales of CCTV systems in India.
Commercial buildings including commercial banks, shopping complexes,
residential buildings, manufacturing plants and warehouses,

3) Fire and Gas Detection Devices: Gas detectors, with their higher
unit price, make up the largest portion of the fire protection system. The
market is estimated to be worth about $500,000 (Baht 20 million), and
accounted for about 40% of the $1.25 Million market of the overall fire
protection systems.

Major buyers are plants in high hazard and special risk industries such
as petrochemical, oil refinery gas. Gas detection devices are sold as
part of the overall system. The complete system includes gas detection
equipment, flame, smoke and heat detectors, plant sirens and explosion
proof electrical fittings amongst many others

Companies in the business normally offer the devices along with system
design, engineering, supply of equipment, installation, testing and
commissioning. For example, one of the leading safety companies for
the high hazard industries offers comprehensive lines of products that
include: ultraviolet and infrared (IR/IR and UV/IR) flame detection,
smoke, thermal and linear heat detection, aspirating smoke detection
systems, conventional and addressable control systems with interactive
connection capabilities to central control and monitoring facilities, carbon
dioxide (CO2) and water mist extinguishing systems.

MARKET TRENDS
The increasing security threat to lives and property has brought about a
major increase in demand for sensing and detection devices. Upgrades
of security measures and relevant technology, particularly detection
devices at international airports and seaports, are a direct result of
the global calls for preventive measures against possible terrorist
threats. Thus, marked growth of the detection devices market in recent
years following 9-11 has been a result of the Government’s increase in
investment for security standards that meet with global requirements.

In addition, the subsequent domestic unrest further increases demand


for detection devices. The unrest in Thailand’s three southernmost
provinces that caused a bomb attack at one of the provincial airports,
and a shopping mall in the South, despite their limited damage, urged
the Government to improve security measures at Government office
buildings, public areas and especially airports of both domestic and
international. Increasing sales of CCTV and metal detection devices
has been a direct result of this.

For the same reason, industry experts expect the market for metal
detection devices to expand further at a projected rate of 30-40%
over the next few years. Purchase of detection devices are expected
to come from both the Government and private sectors. The
Government is expected to invest further for better security and
preventive measures at additional premises deemed as potential hi-
threat areas.

Moreover, application of detection devices for theft prevention


purposes creates an important demand trend in the market.

Furthermore, industry experts project a continuing increase in sales of


hand held metal detectors to business operators for the purpose of theft
prevention. CCTVs are installed at warehouses to prevent possible theft
of their inventory. Similarly, industrial plants using precious metal and
jewelry factories employ hand held metal detector as a preventive
measure against theft of their raw materials and or finished products
from their production sites.

Unlike metal detectors and CCTV, demand growth in the gas and fire
detection devices market tends to correspond more with economic
growth and expansion of relevant industries. In addition, routine
replacements of existing gas and fire detection devices at industries also
make up a substantial amount of sales in this market. Hence, demand
growth in this segment is relatively stable. Local experts estimated
growth in this market segment to average at 10% per year for the next
few years.

THE FUTURE OF METAL DETECTORS


The importance of metal detectors in today's society is growing. With
this growth one can only speculate that there will be great advances in
metal detector technology within the coming years. Simply put as the
demand for metal detectors grows the technology will also grow.

Hobby metal detectors have only recently been able to accurately


discriminate, identify and locate targets in the earth at over several
inches. One can expect advances in hobby type metal detectors to
levels that are now un-imaginable.

Metal detectors for security and industry have also made some
exceptional advances and will continue to in the coming years.
Technologies will be developed to not only detect metals, but also
identify them with a visual outline of the metals detected. These
advances will make our lives much safer and more secure.

Some of the most notable advances in metal detector technology are


those made by Minelab Metal Detectors. Minelab has shocked hobbyists
with its BBS and FBS metal detecting technologies. These new
technologies improve upon VLF technology. Most metal detectors use
one frequency while in operation. Minelabs FBS and BBS metal
detectors use multiple frequencies, 17 frequencies in their BBS
technology and 28 frequencies in their FBS technology. These
technologies have improved upon many aspects that limited other metal
detectors.

THE 7 P’S OF MARKETING


PRODUCT:
This is a walk-through metal detector, with an x-ray machine, performing
the 2-in-1 function.

The present invention relates to an improvement of metal detectors


such as those typically found in office buildings and airports. Such metal
detectors are the type where persons and objects pass through a
magnetic field created by circuitry in the detector whereby the presence
of metal may be determined. Most such metal detectors are based on
pulse induction technology, and while the improvement of this invention
may be used with virtually any type of walkthrough metal detector, it is
believed that the improvement will be utilized primarily in combination
with pulse induction detectors.

It also has an x-ray machine, which can detect and differentiate between
harmful metal devices and harmless ones, as and when a person
passes through the detector. This save the travelers the time and
provides ease and comfort, as they dont have to remove anything from
their pockets and clothes.

PRICE:
The metal detector is a highly advanced machine, comprising of an x-ray
machine also, and hence has been made with a lot of R&D and testing,
using world-class technology.

This is one of its kind in the world, with no other company providing with
such an innovative product, hence it has been priced at Rs 1.5 crore.

PLACE:
The company would be set-up in Goa, where the production would be
done. From Goa, the metal detectors would be transported to various
airports of the country through a safe and reliable transport system.

MARKET ENTRY
For metal detectors market, a sole distributorship is a common
arrangement. Because reliability and quality are primary features
sought after by the market, brand recognition and distributor’s quality are
essential elements.

Exclusive arrangement prevents competition among multiple


distributors of the same product makes which often can lead to price
cutting and lower the overall standard of marketing and support services
of the local distributors.

Metal detection require a certain level of continuity over the project life
and accountability on the system and products performance.

PROMOTION:

Since this is a technical product, which needs to be sold to government


only, it needs more of a one-to-one interaction, demonstration and
selling to the officials.

No such promotion strategy is needed.

PEOPLE:

We would be hiring expert personnel with highly technical knowledge


about the metal detectors, who would look after the plant, operations,
interaction with the government officials and various agencies who are
interested in purchasing it.

We would roughly employ 100 employees in the Goa plant, to look after
the operations and R&D.

Some of the employees would be doing fieldwork, who would visit


various agencies in India and sharing information about the product.

PHYSICAL EVIDENCE:
A state of an art technology and infrastructure would be made in Goa,
which would be highly securitised.

Since the employees need to work with chemicals and radiations, a lot
of safety measures would be taken in the plant.

A medical section would be made to keep the employees safe and


healthy.

There would an office in Goa, to entertain visitors who would like to


interact with the company officials and directors.

PROCESS :

The machines would be imported from Taiwan, to the production unit at


Goa.

In Goa, the R&D would take place and the walk-through metal detectors
having an x-ray would be manufactured.

From Goa, it the metal detectors would be transported and installed in


the various domestic and international airports in the country, and also
the malls and cinemas if the demand is generated.

SEGMENTATION:

Benefit based segmentation:

The walkthrough metal detector cum x-ray would be benefial to the


airport authorities in the following way:

• Saves time

• Convenience enhancer

• Traveller satisftaction: as they don’t have to remove all their metal


accessories.

• Ease of use

TARGET MARKET:
It would be sold at all domestic and international airports of the country

The scope can be further expanded by selling in the malls and


multiplexes, as they have started taking safety measures.

It is a complicated technical product hence would require direct selling


with a lot of clarification regarding its functioning.

End Users
In addition to Government organizations and embassies, end users
of sensing and detection devices encompass a large number of
diversified groups of organizations deemed to be under security threat
either to lives or property. They include banks and financial
institutions, gold bullion/mint corporations, high security printing
businesses, hotels, educational institutions, gem and diamond
cutting enterprises, high rise office buildings, oil refineries and
petrochemical plants, large manufacturing plants, entertainment
venues and condominiums, etc. Regardless of their diversified
nature, end users can largely be classified into two groups; the
government, requiring a formal bidding in their purchase and private
sector requiring no formal bidding process.

Selling procedure
Selling through a bidding process in most cases involves a longer time
and more people in the decision making process. Potential suppliers for
projects are required to work on the process since the beginning when
actual users of the subjected device prepare their requirements
proposal, and where the desired specifications are stated which in turn
the criteria of qualified supplier are. Once becoming qualified, these
suppliers need to follow up on the project till the time the budget
becomes available and eventually the purchasing committee makes the
decision to award the contract. Because most bidding projects are of
high monetary value where most people involved have certain degree of
influence, success in the bidding process requires more than having a
product with the right feature / quality at the most competitive price.
Right strategy and relationship are needed. In general, having a local
representative is key to these essential competitive elements, and hence
it is recommended if not required that U.S. exporter(s) of detection
devices have a capable local representative.

Similarly, selling to the market with no formal bidding process, generally


to private sector customers also requires a capable local representative.
Product features responding to the buyer’s requirements and
competitive price are key to the buying decision. However, local
representative’s good reputation in the market enhances the product’s
quality & reliability in the buyers’ perception. Meanwhile, their market
coverage and good rapport with potential buyers increases their market
possibilities.

MARKET ACCESS

Intense competition in the market is the major barrier to a successful


entry of detection devices in India. Imported detection devices are not
subject to any non-tariff barrier in India. Consequently, local companies
bring in and market such devices as market opportunities arise. The
ease of market entry increases the number of players and products that
result in increased competitive pressure in the market.

MARKET SIZE-

• India has 31 states, with atleast 2 airports in almost all states.

• If we sell our product to all the states, we can sell up to minimum


of 62 detectors.

• The no. of malls and multiplexes in India is increasing every year.


All the malls and multiplexes have regulated strict safety and
security norms after the terror attacks.

• We can also export out detectors to other countries as the prices


would be lower when compared on an international basis.
• The overall market value of sensing and detection devices in India
is estimated at more than $100 million per year. The market is
expected to grow more than 30% in the next few years, mainly as
a result of increasing spending for greater security and safety of
life and property in both public and private sectors.

• Demand for metal detectors and CCTV is on the rise as the Indian
Government upgrades security measures and technologies and
expands safety coverage areas in response to both global and
domestic requirements.

• In addition, demand among business operators is also on the rise


as their needs for better prevention for potential loss and damages
to lives and property increases.

• American sensing and detection devices compete particularly


well in the high-end market, which accounts for 70% of the
market. Quality and technology that result in greater reliability are
the key competitive advantage for American products in this
market segment where cost of failure of the devices is formidable.
Hence, India offers good export opportunities for American
sensing and detection devices. However, American suppliers
need to identify capable distributor(s) in the country to effectively
explore opportunities and successfully market their products.

IMPORT MARKET

Imports encompass all sensing and detection devices in the Indian


market. European and American imports dominate the high
price high quality segment, while Taiwan, Korea, China and
India dominate the lower end of the market.

U.S. makes have about 70-80% share of the CCTV market, 30-
40% of the metal detection market, and close to half of the fire
and gas detection devices for industries.
Similarly, European makes, principally Italian ones, dominate the
metal detection market with 30-40% share, while U.K. ones are in
the fire and gas detection devices. Makes from Taiwan, Korea
and China are popular in the lower end market segment, most
prominently the CCTV market, accounting for about 20%.

Local content of the detection devices market is minimal and


limited to simple devices such as sprinklers, assembling work in
the CCTV market and some engineering and design work on the
industrial gas and fire detection systems.

COMPETITION:

U.S. makes together with European ones are leaders in the high-
end segment of the detection and sensing devices market because
of their technology and product quality. Their prime target market is
composed of Government organizations, hi-threat public areas,
embassies, large corporations, large manufacturing operations, of which
cost of failure to prevent loss /damage of and/or to protect the intended
property is formidable. As a result, reliability and capability of U.S.
and European products are their prime competitive advantages.

Furthermore, the use of American safety standards in high hazard


industries gives U.S makes a distinct advantage in markets such as
refineries and the petrochemicals industry. This is because safety
standards for these industries are set according to that of the National
Fire Protection Association (NFPA) where specifications of safety-
related products and equipment are based on UL and ANSI standard
codes. U.S. detection and sensing devices are qualified based on the
same standards as those specified in the design and are at major
advantage to dominate the segment.

In contrast, U.S. and European makes do not compete well in the


lower end segment of the market where price is the market’s prime
consideration. Makes from Taiwan, Korea, China and India
dominate this segment of the market, which accounts for 30% of
the overall sensing and detection devices market value. Average price
of a typical product in this segment is about one third of a U.S. one.
But, the walkthrough metal detector is one of its kind with an x-ray
machine attached to it. Nowhere in the world both these features
have been integrated into a single product, which not only saves
time and money, but also enhance convenience for the travellers
but also the airport officials.

We will patent the technology, so that no one else can copy our
technology. Hence till the time the patent rights last, we will have
no completion.

RISK ASSESSMENT
 RISK OF NOT ACHIEVING THE PROJECTED PROFITS AND
SALES REVENUE AS PROJECTED

 RISK OF THE INNOVATION NOT BEING ACCPETED BY THE


GOVERNMENT FOR THE AIRPORTS.

 RISK OF THE PRODUCT NOT MEETING THE EXPECTATIONS


ANS UTILITY AS WAS PLANNED.

WAYS TO OVERCOME THE RISKS:

 Since we are already into the business of making security


equipments like metal detectors, CCTV etc, we can simplify the
product and sell them as ordinary metal detectors as we have
been since so many years.

 We have many other opportunities and avenues to sell this


innovative product at schools, prisons, malls, multiplexes,
hospitals, banks and financial institutions, gold bullion/mint
corporations, high security printing businesses, hotels, educational
institutions, gem and diamond cutting enterprises, high rise office
buildings, oil refineries and petrochemical plants, large
manufacturing plants, entertainment venues and condominiums,
etc.

 We also have a lot of scope in the world market, where we can


export the product at low cost, as US and Europe are the countries
who sell this product in the high price segment, we can target the
low cost segment.
FINANCIAL
PLAN
NAME OF THE COMPANY: METALAX PVT. LTD.
NAME OF THE INNOVATIVE PRODUCT: DETNO TRACKER
PLACE: PANJI, GOA
INVESTMENT REQUIRED: Rs 120 CORE

TIME PERIOD FOR REPAYMENT OF BANK LOAN WITH INTEREST:


7 YEARS. AFTER WHICH IT WILL BECOME A SELF SUSATAINING
COMPANY

 1ST YEAR: LOSS OF Rs 7, 90, 00,000

 SUBSEQUENT 2 YEARS: PROFIT OF Rs 6-20 CRORE


EXPECTED.

 SOURCES OF FINCANCE

 RS 20: PROVIDED BY ENTREPRENEURS THEMSELVES

 RS 40: Economic Development Corporation of Goa and Goa


Industrial Development Corporation (Interest rate 14% p.a)

 RS 60: VENTURE CAPITALIST. (Return of 25% on profits)

BREAK –UP OF INVESTMENT


 CASH IN HAND - RS 20 CRORE

 PLANT AND MACHINERY - 35 CRORE

 FACTORY BUILDING - 15 CRORE

 LAND - 30 CRORE

 RESERVE - 15 CRORE

 WORKING CAPITAL AND OVERHEADS - 5 CRORE


EXIT ROUTE FOR THE VENTURE CAPITALISTS

The venture capitalists, will be getting a 25% return on the profits earned
by the company upto 7 years, after which it has the following options to
exit-

1. They can issue an IPO and sell of their share as equity.

2. The existing entrepreneurs can buy their share.

3. They can sell their share to the Goa government.


PROJECTED P&L ACCOUNT AND BALANCE SHEET FOR YEAR 1

Income Statement for the year ending 1

Wages & Salary 30000000 Gross profit 150000000

Electricity Bill 18000000

Power backup 12000000

Medical & confectionary 12000000

Insurance 15000000

TQM 15000000

Bank Interest 56000000

Depreciation-

Land @ 5% 15000000

Factory @ 10% 15000000

Machinery @ 10% 35000000 Net loss 79000000

Interest on capital @ 6% 6000000

150000000 150000000
Balance Sheet as on Year 1
Libilities Assests
Capital 100000000 Plant / Machinery 350000000
(Less) Net loss 79000000 (less) Depr @ 10% 35000000
21000000 315000000
(Add) Int @ 6% 6000000 Land 300000000
27000000 (less) Depr @ 5% 15000000
Bank loan 400000000 285000000
Reserves 150000000 Factory 150000000
Bank overdraft 150000000 (less) Depr @ 10% 15000000
B/P 200000000 135000000
Creditors 240000000 Patents 200000000
O/S Expenses 170000000 B/R 150000000
Pre paid expenses 52000000
cash in hand 200000000
1337000000 1337000000

PROJECTED P&L ACCOUNT AND BALANCE SHEET FOR YEAR 2


Income Statement for the year ending 2

Wages & Salary 31800000 Gross profit 300000000


Electricity Bill 19080000
Power backup 12000000
Medical & confectionary 12720000
Insaurance 15000000
TQM 15900000
Bank Interest 56000000
Depreciation
Land @ 5% 15000000
Factory @ 10% 15000000
Machinery @ 10% 35000000
Interest on capital @ 6% 6000000
Net profit 66500000
300000000 300000000
Increase @ 6% Inflation
Balance Sheet as on Year 2
Libilities Assests
Capital 100000000 Plant / Machinery 315000000
(Add) Net profit 66500000 (less) Depr @ 10% 35000000
166500000 280000000
(Add) Int @ 6% 6000000 Land 285000000
172500000 (less) Depr @ 5% 15000000
Bank loan 400000000 270000000
Reserves 150000000 Factory 135000000
Bank overdraft 170000000 (less) Depr @ 10% 15000000
B/P 230000000 120000000
Creditors 240000000 Patents 200000000
O/S Expenses 200000000 B/R 340000000
Pre paid expenses 102500000
cash in hand 200000000
1512500000 1512500000

PROJECTED P&L ACCOUNT AND BALANCE SHEET FOR YEAR 3

Income Statement for the year ending 3

Wages & Salary 33708000 Gross profit 450000000


Electricity Bill 20224800
Power backup 12000000
Medical & confectionary 13483200
Insaurance 15000000
TQM 16854000
Bank Interest 56000000
Depreciation
Land @ 5% 15000000
Factory @ 10% 15000000
Machinery @ 10% 35000000
Interest on capital @ 6% 6000000
Net profit 211730000
450000000 450000000
Increase @ 6% Inflation

Balance Sheet as on Year 3


Libilities Assests
Capital 100000000 Plant / Machinery 280000000
(Add) Net profit 211730000 (less) Depr @ 10% 35000000
311730000 245000000
(Add) Int @ 6% 6000000 Land 270000000
317730000 (less) Depr @ 5% 15000000
Bank loan 400000000 255000000
Reserves 150000000 Factory 120000000
Bank overdraft 150000000 (less) Depr @ 10% 15000000
B/P 250000000 105000000
Creditors 270000000 Patents 300000000
O/S Expenses 230000000 B/R 390000000
Pre paid expenses 162500000
Short term Investment 60230000
cash in hand 250000000
1767730000 1767730000

CASH FLOW STATEMENT FOR YEAR 1


PARTICULARS DETAILS AMOUNT
Cash flow from operating activities
net loss -12500000
ADD: depriciation
plant/ machinery 35000000
Land 15000000
Factory 15000000
Net working capital 52500000
ADD: increase in bills payable 30000000
ADD: increase in outstanding expenses 30000000
LESS: increase in bills recevables -190000000
LESS: increase in prepaid expenses -5050000
NET INCREASE OR DECREASE OF
CASH -82550000
LESS: bank overdraft -20000000
ADD: opening cash balance 200000000
CLOSING CASH BALANCE 97450000

PROJECTED SALES REVENUE


In the 1st year we are going to target 5 states of India (each state
includes 2 Airports) , that means we are targeting 10 airports & we are
going to manufacture 10 machines. The cost per machine is Rs. 1.5
crore. Therefore our first year sales revenue is projected at Rs.
150000000.

In the 2nd year the target will be extended up to 10 states i.e., we will sell
20 machine, then the sales revenue will be Rs. 300000000.

In the next year we will sell 30 machines in fifteen different states.


Hence the sales revenue will be (30 x 1.5cr.) i.e., 450000000.

PROJECTED BUSINESS EXPENSES


As mentioned in the Profit & Loss A/c, the existing Inflation rate is 6%.
Therefore all the business expenses are subjected to increase by 6%
every year.

Bank Interest is will remain constant for each year.

Depreciation is calculated as per the following:

 Land @ 5%

 Factory @ 10%

 Machinery @ 10%

Interest on Capital is calculated @ 6% per year.


PROJECTED PROFIT/LOSS

Since it is a new business, people know very less about it, the company
will not earn much profit in the first year because there are no clientele in
this year. We will establish ourselves in the initial year that will cost a lot
to the company. Therefore it is projected that the company will suffer
from losses in the first year. The projected loss for the 1 st year is Rs.
79000000

The projected profits for the second year are Rs. 66500000. In this year
the business will establish itself, the goods will be manufactured on the
basis of order received. We expect to get quite a few orders that will
generate profit for us.

In the third year, since our targets will be higher, therefore we expect
higher profits of the business. The profit for the third year is expected to
reach up to Rs. 211730000.
APPENDIX