INDEX

Sl. No. Topic Page No.

1. Introduction 7
2. Idea Generation 8-9
3. Market Potential 10
4. Why This Business? 11
5. Business Overview 12
6. Objectives of the 13
Organization
7. Vision of the 13
Organization
8. Product Evaluation 14-15
9. Market Analysis 16-28
10. Technical Analysis 29-37
11. Financial Analysis 38-44
12. Analysis & 45-46
Interpretation
13. Annexure 47-53
 INTRODUCTION

It is needless to mention that water, a compound of hydrogen and

oxygen is a precious natural gift which is very essential for survival of
mankind including animals. The water used for portable purposes
should be free from undesirable impurities. The water available from
untreated sources such as Wells, Boreholes and Springs is generally
not hygienic and safe for drinking. Thus, it is desirable and necessary
to purify the water and supply under hygienic conditions for human
drinking purpose as the name implies. The mineral water is the
purified water fortified with requisite amounts of minerals such as
barium, iron, manganese etc., which can be absorbed by the human
body. It is either obtained from natural resources like spring and
drilled wells or it is fortified artificially by blending and treating with
mineral salts. The mineral water shall be manufactured and packed
under hygienic conditions in properly washed and cleaned bottles in
sterilized conditions. Water forms an essential part of every human
being. Since it is a human necessity it makes best sense to do business
in this. As a normal human being requires an average of 2-3 litres of
water every day and world population is more than one billion
(growing at 2-3% annually) the business opportunity is enormous and
the potential is largely untapped. Humans have been storing and
distributing water for centuries. Before, when people lived as hunters,
river water was used for drinking water purposes. When people
permanently stayed in one place for a long period of time, this was
usually near a river or lake. When there were no rivers or lakes in an
area, people used groundwater for drinking water purposes. This was
pumped up through wells. When the human population started
growing extensively, the water supply was no longer sufficient.
Drinking water needed to be extracted from a different source. The
human body is more than 60 percentage water. Blood is 92 percentage
water, the brain and muscles are 75 percentage water, and bones are
about 22 percentage water. A human can survive for a month or more
without eating food, but only a week or so without water.
 IDEA GENERATION

Each and every individual, firm, industry and nation wants to be

ahead of another with the help of adequate resources, enthusiastic and
risk taking entrepreneurs, and adequate and amiable labour force,
proper transportation and other infrastructural facilities along with the
line to help the business units to bloom. With the same hope of bright
future, we propose to venture ourselves in the field of Packaged
Drinking Water where the scope of development is extended up to the
horizons. Reasoning is an important aspect in everything that is
happening around us. Even while selecting our product we had a
reason behind it.
The consumption of mineral water is linked with Public Health as the
concept has virtually been imported from the Western Media. The
necessity and hygienic nature of the product has led to an increase in
its consumption in mainly the High-Income Grade people & Tourist
places. The huge potential for Tourism is virtually limitless. The
mineral water is one of the important items which is directly
consumed by people all over the world. Due to consideration of
Health view point, consumption of ordinary water is gradually
decreasing. Ordinary water contains many toxic elements, impurities
which some time turns out to be fatal. Nowadays, people are generally
becoming aware and sensitive to consume clean pure water. Packaged
Drinking Water is principally consumed in Hotels, Hospitals, Tourist
Place, Party Functions & Residents, where good quality pure water is
required for potable purposes. We found that the Packaged Drinking
Water industry is having continuous and steady growth rate. We even
found that there is full-fledged demand in the market for mineral
water and higher profit margin in it.
India has the world’s largest population without access to clean
drinking water. Not surprisingly, sales of bottled water have been
soaring here.
Hon’ble Prime Minister Narendra Modi has made an appeal in the
context of supporting Indian economy at the grassroots level as a step
towards self-reliance. Through “Vocal for Local”, he has appealed for
buying local product and supporting local business. This is because
during the lockdown and COVID-19 it is the local vendors, products
and services that has helped us survive. He said that Covid-19 has
taught us the importance of local manufacturing, market and supply
chain.
This gives us the competitive edge over foreign mineral water bottle
manufacturing companies.
 MARKET POTENTIAL

Unfortunately, sufficient safe portable water is not available

everywhere in the country, either harmful chemical substances are
found in the layers of earth which enter in to water or it may be
contaminated due to pathogenic micro-organisms. If such water is
consumed, the body suffers from water borne diseases. Due to this, it
has become imperative to process and bottle safe portable water for
the mankind in prevailing conditions. The demand for purified water
becomes more during summer season.

Although few companies have already entered in the bottling of safe

portable water and mineralized water, but still huge gap is there in
between demand and supply at all metropolitan cities and towns. The
product is widely accepted in offices, restaurants, railway stations,
airport, bus stands, hospitals and to some extent in rich house-holds.
So, there is good scope for establishing the units for processing and
bottling plant and mineralized drinking water in different parts of the
country.
 WHY THIS BUSINESS?

We have opted for this business because of the following reasons: -

 There is a huge gap between demand & supply in the case of

bottled water. People often face a lot of ordeals to find pure
drinking water.
 It produces a stable and good source of income as compared to
other businesses. Bottled water is an all-season product and
there is very less probability of a recession in this sector.
 This business involves a limited outlay of cash. There are
mainly one-time investments in this business and the outlay is
not very huge. Once the plant is set up, the business becomes
profitable in a very short period of time.
 The various schemes and campaigns launched by the
governments like “Make in India” & “Vocal for Local” also
provides a very conducive environment to our business.
 Day by day, people are becoming more health conscious and
opting for a healthy lifestyle. This factor also helps in generating
demand for our product.
 BUSINESS OVERVIEW

We, at Lifeline, aim to provide a healthy lifestyle to people. Water,

being the most rudimentary need of the mankind, is extremely
essential and clean and hygienic drinking water is more essential than
anything else in this world. We with the help of our initiative offer a
solution to this problem. Our product is not just a product but it’s
solution to the most challenging problem with the mankind faces
today.
Also, the factor of affordability has always been in our minds before
curating this product. Thus, we are not only offering clean bottled
water but we are also ensuring that it is available at a very affordable
price.
Our product, “Lifeline: Purity is a Promise” is available in the pack
sizes of 1L,2L,5L and 20L at prices of Rs 9, Rs 19, Rs 39 and Rs 99
respectively.
Initially, we have planned to start our operations only in Ranchi. If
everything falls in place, we have plans to increase our network to
Pan India.
 VISION OF THE ORANISATION

The Vision of our Organization is to ensure and increase Customer

Satisfaction & Delight while complying with quality, value &
innovation.

OBJECTIVES OF THE ORGANISATION

The objectives of our Organization are as follows:

 To strive and become the market leader in the bottled water

market segment.

 To provide the best quality of mineral water at an affordable

price in the market.

 To tap the various untapped market segments and spread our

distribution network all over the country.

 To maintain healthy relationships and synergy with all our

clients.

 To repay the entire loan amount along with the interest within
the term of the loan and make the organization debt-free
 PRODUCT EVALUATION

1. Feasibility of Product
Our company manufactures Packaged Drinking Water. In today’s
era, people are becoming more health conscious. People are
becoming more sensitive towards consuming clean pure water.
This has led to an increasing demand in packaged drinking water
industry. Hence, our product is feasible as it caters to the growing
demand of industry.

2. Salient Features
LIFELINE Packaged Drinking Water will be available in different
sizes to cater to all the needs of people in various segments. It will
be available in 1 litre, 2 litre and 5 litre bottle and 20 litres jar. Our
Mineral Water is also rich in oxygen which retains purity of water
for a long time.

3. Market
It’s principally consumed in Hotels, Hospitals, Tourist Place, Party
Functions & Residents, where good quality pure water is required
for potable purposes. It is also marketed at places & regions, where
hygienic drinking water is not freely available.

4. Quality Aspects
As we want to establish ourselves as a reputed brand in the
market, we take utmost care of quality of water provided to the
customers. Various tests are performed on purified water and after
clearing through all tests, then only the mineral water is packed in
bottles and jars.
5. Brand Equity
Our task is to establish the brand name ‘LIFELINE’ in every
corner of RANCHI as initially our market is limited to RANCHI
only. Today Consumer is the king of the market and he prefers
branded products more. Hence, if the end-consumers are satisfied
with our product, then and only we will be considered to be the
successful player in the market. Moreover, it’s a well-known fact
that one satisfied customer will bring ten more customers by word-
of- mouth. Thus, we will be getting more and more customers by
establishing our brand name in the market and also compete with
other players successfully.
 MARKET ANALYSIS

A market analysis is a quantitative and qualitative assessment of a

market. It looks into the size of the market both in volume and in
value, the various customer segments and buying patterns, the
competition, and the economic environment in terms of barriers to
entry and regulation.

1. Market Description
1.1 Target Market
Our initial target market is Ranchi City and target consumers are
mainly the students of various schools, colleges, coaching institutes
and working-class people because they are the ones who are in the
maximum need of hygienic drinking water. We will also supply our
product to the various Hostels, PGs and flats. Along with this we also
target the general masses of Ranchi.
Target Locations

 Lalpur
 Firaylal
 Mesra
 Main Road
 Kantatoli & Patel Chowk Bus Stand
 Plaza Chowk
 Circular Road
2. Marketing Strategies
We have devised the following marketing strategies to cater
efficiently to our target market and customers: -

 We will partner with all general shops big or small in our

target locations and supply our product to them. We will
also incentivize them by providing them greater margins,
refrigerators and shop hoardings so that they prefer to sell
our product over other similar products.
 We will also partner with the prominent restaurants &
hotels of the city so that they sell our product to their
customers.
 Also, we will try to build tie-ups with the various Offices
and Hospitals of the city and supply our product there.
 We shall distribute some free samples to the college
students, office goers and will try to gather some product
review before launching the product to the market.
 We have also planned to provide a free 1L pack of our
product with all the orders placed through Zomato &
Swiggy with our partner restaurants. This will lead to a
habit formation which will help us significantly to create a
strong customer base.
 We will also supply drinking water to the various Hostels,
PGs and flats. People can place their orders via call or
through WhatsApp.
 We have also planned an effective promotion campaign
wherein we will put hoardings, distribute flyers in all the
areas which can have potential demand of the product.
3. Distribution Strategy & Channel Design

A distribution strategy is a method of disseminating goods or

services to end-users. Implementing the most efficient
distribution method for the business is key to obtaining revenue
and retaining customer loyalty. Some companies opt to use
multiple distribution methods to adhere to different consumer
bases.
At its core, distribution strategy should be based on your ideal
customer — how does the average client buy goods? How could
you, as a producer, make the purchasing process easier? Is it an
extensive purchase where buying the item directly from the
manufacturer could be worth the potential hassle, or is it a
routine item where the customer would rather receive the
product quickly and on-demand through a retailer? The role that
an item will play in a client’s life and the type of purchase
decision associated with a product are important aspects to
consider when determining a strategy.
For our product we have devised a strategy which is the mix of
both indirect as well as intensive distribution strategy. Indirect
distribution strategies involve intermediaries that assist in the
logistics and placement of products so that they reach customers
swiftly and in an optimal location based on consumer habits and
preferences. In the case of our product, we will sell our it
through the retailers. We have also planned to put our product
into as many retail locations as possible. This will also help in
the favorable positioning of the product into the minds of the
potential customers.
A distribution channel is a chain of businesses or intermediaries
through which a good or service passes until it reaches the final
buyer or the end consumer. Distribution channels can include
wholesalers, retailers, distributors, and even the Internet. The
channel should align with the firm's overall mission and
strategic vision including its sales goals.
The method of distribution should add value to the consumer.
Do consumers want to speak to a salesperson? Will they want to
handle the product before they make a purchase? Or do they
want to purchase it online with no hassles? Answering these
questions can help companies determine which channel they
choose.
Secondly, the company should consider how quickly it wants its
product(s) to reach the buyer. Certain products are best served
by a direct distribution channel such as meat or produce, while
others may benefit from an indirect channel.
If a company chooses multiple distribution channels, such as
selling products online and through a retailer, the channels
should not conflict with one another. Companies should
strategize so one channel doesn't overpower the other.
For our product, we have planned to take up 0-level as well as 1-
level channel. 0-level channel will be used when the customer
orders the product and it has to be delivered to the customer’s
place. ( e.g. PGs, Hostels, Apartments and Housing Societies).
For selling our product directly into the market, we will take up
1-level distribution channel. Here, we will supply our product to
the various retail shops who then will supply it to the final
customers.
An analysis of the various competitive brands shows us that
maximum no of brands follow a 2-level /3-level distribution
channel. This factor adds a substantial amount of value to the
final price of their product. We, by following a 1-level
distribution channel, can leverage on this factor and can gain a
competitive edge over the other brands.
4.Pricing Strategy
A pricing strategy is a model or method used to establish the
best price for a product or service. It helps you choose prices to
maximize profits and shareholder value while considering
consumer and market demand.
Pricing strategies take into account many of your business
factors, like revenue goals, marketing objectives, target
audience, brand positioning, and product attributes. They’re also
influenced by external factors like consumer demand,
competitor pricing, and overall market and economic trends.
The best pricing strategy maximizes your profit and revenue.
In India, the majority of the people belong to the middle-class
section of the society and therefore the we have gone for a
reasonable pricing policy. Water is available at every corner and
to sell and market it, one has to keep the pricing policy at a
minimum range.
We realize the basic idea is to generate as much volume of sales
as possible as this will automatically result in larger revenues.
Until and unless the consumers can buy the product at a
convenient place and that to at affordable rates, it will not reach
every part of the society.
In order to meet the consumer expectation, we have kept pricing
policies simple and clear.
A great deal of market research has been done by our team
before coming to a suitable pricing policy. We have mainly
implemented Competitive Pricing policy in our product. This is
because no rational customer in the market would be ready to
buy a new product at a premium price. We have also
implemented the Bata Pricing Policy which is going to have a
psychological effect in the minds of the customers to procure
more amount of goods.
The complete cost of production including packaging and
logistics comes out to be around Rs.7-7.5 per bottle (1 Litre).
We will make sure that the product is available to the consumer
at maximum Rs. 9 per bottle (1 Litre) (MRP)
An analysis of the product variant along with their prices of the
various competing brands of our sector is presented below: -
So almost at every segment, we are offering our product at a much
lower price as compared to our rivals while not compromising at any
way with our quality and product offerings.
This is our Unique Selling Proposition (USP) which is definitely
going to give us a huge market share.

5. Demand Forecasting

Demand forecasting is a field of predictive analytics which tries to

understand and predict customer demand to optimize supply decisions
by corporate supply chain and business management. Demand
forecasting involves quantitative methods such as the use of data, and
especially historical sales data, as well as statistical techniques from
test markets. Demand forecasting may be used in production
planning, inventory management, and at times in assessing future
capacity requirements, or in making decisions on whether to enter a
new market.
To calculate the probable demand of our product we have used the
Survey Method. Since due to time and cost constraints conducting a
survey for the entire population was not feasible , thus we chose a
sample to calculate the parameters which was the true representative
of the population. We applied the technique of Random Sampling to
eliminate any sort of biasness in the results. Sample Size for our
Study was around 100. We conducted this survey only in Ranchi as
Ranchi is our initial target market.
The results of the survey are as follows: -
Question:
Do you prefer drinking water from any source when you are outside
or do you prefer to buy a mineral water bottle?

81.5% of the respondents preferred to buy Mineral Water Bottle while

they were outside their homes.

Question:
Profession.
Around 97% of the respondents were either students or from the working
class.
Question:
What price are you ready to pay for a 1 Litre mineral water bottle?

Around 67% of the respondents opt for the price range of Rs. 11- Rs. 20
and 17% opt for the price range of Rs. 1-Rs. 10.
This proves that our product is priced at a very affordable and genuine
point.

Question:
What, according to you, is the most important factor which you consider
while buying a mineral water bottle?

Around 82% of the respondents considered quality as the most important

factor before making the purchase.
This portrays that the customers will definitely purchase our product as we
are suppling the best in class quality.
Thus, we arrive to the conclusion that around 80% of the respondents
showed an inclination towards buying our product. Projecting the results to
the entire population we get that if all the strategies are executed properly
and control and evaluation is exercised, we can have at least 70 – 80 % of
the Market Share which definitely will make us the market leader.

6. SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and
so a SWOT Analysis is a technique for assessing these four aspects of the
business.
SWOT Analysis is used to make the most of what a business has got, to
the organization's best advantage. It can reduce the chances of failure, by
depicting what is lacking, and eliminating hazards that would otherwise be
ignored
1.Strengths
 One of our prime strengths is our PQD Model where focus is laid on
the Price, Quality as well as smooth Distribution of the product.
 We have managed to get to the sweet spot in pricing which makes
our product lucrative.
 We offer free home delivery of the 20 L jars which no other
company in the segment offers.

2. Weakness
 We believe that the limited capital of our organization can be a
potential weakness for it.
 We also lack reputation and a brand image as we are getting into this
business for the very 1st time.

3. Opportunities
 Our greatest advantage at this point of time is the “Vocal for Local”
campaign by the Indian Government which provides a conducive
environment for our growth.
 We are in a market which probably is never going to face recession
or major shocks.
 The demand in this market has sky rocketed in the past and is also
likely to grow exponentially in the near future.
4. Threats
 Our greatest threat are our competitors who already have a huge
market share and brand equity. Taking away the market share from
them is going to be the major task for us.
 Our product pricing may invoke the feelings of an inferior product
and this might lead to losing some potential customers.
 TECHNICAL ANALYSIS

Technical aspects relate to the production or generation of the project

output in the form of goods and services from the project’s inputs.
Technical analysis represents study of the project to evaluate technical
and engineering aspects when a project is being examined and
formulated. It is a continuous process in the project appraisal system
which determines the prerequisites for meaningful commissioning of
the project.

1.Raw materials

For our product, the Raw Material needed is water. We shall

procure water by digging a deep bore. We will do a bore drilling
up to 20-30 meters under the ground. The microbiological
quality of water at this level is usually very good. The bore will
be protected from the entry of any surface water and will be well
maintained. A Quality Analysis of the water will be done prior
to the production.

We believe that consuming anything less than 100% pure water

is hazardous to the health of the consumers. Thus , at every
point of production we will ensure that we conform to the
quality standards.
 2.Manufacturing Process and Technology

The various technologies which we will employ to purify the

water are as follows: -

1. Reverse Osmosis: -

Reverse Osmosis, commonly referred to as RO, is a process

where to demineralize or deionize water by pushing it under
pressure through a semi-permeable Reverse Osmosis
Membrane.
Reverse Osmosis works by using a high-pressure pump to
increase the pressure on the salt side of the RO and force the
water across the semi-permeable RO membrane, leaving almost
all (around 95% to 99%) of dissolved salts behind in the reject
stream. The amount of pressure required depends on the salt
concentration of the feed water. The more concentrated the feed
water, the more pressure is required to overcome the osmotic
pressure.
The desalinated water that is demineralized or deionized, is
called permeate (or product) water. The water stream that carries
the concentrated contaminants that did not pass through the RO
membrane is called the reject (or concentrate) stream.

As the feed water enters the RO membrane under pressure (enough

pressure to overcome osmotic pressure) the water molecules passes
through the semi-permeable membrane and the salts and other
contaminants are not allowed to pass and are discharged through the
reject stream (also known as the concentrate or brine stream), which
goes to drain or can be fed back into the feed water supply in some
circumstances to be recycled through the RO system to save water.
The water that makes it through the RO membrane is called permeate
or product water and usually has around 95% to 99% of the dissolved
salts removed from it.
It is important to understand that a RO system employs cross filtration
rather than standard filtration where the contaminants are collected
within the filter media. With cross filtration, the solution passes
through the filter, or crosses the filter, with two outlets: the filtered
water goes one way and the contaminated water goes another way. To
avoid buildup of contaminants, cross flow filtration allows water to
sweep away contaminant build up and also allow enough turbulence
to keep the membrane surface clean.
Reverse Osmosis is capable of removing up to 99%+ of the dissolved
salts (ions), particles, colloids, organics, bacteria and pyrogens from
the feed water.

2. Ultrafiltration (UF)
Ultrafiltration (UF) is a membrane filtration process similar to
Reverse Osmosis, using hydrostatic pressure to force water through a
semi-permeable membrane. The pore size of the ultrafiltration
membrane is usually 103 - 106 Daltons. Ultrafiltration (UF) is a
pressure-driven barrier to suspended solids, bacteria, viruses,
endotoxins and other pathogens to produce water with very high
purity and low silt density.
Ultrafiltration (UF) is used to remove essentially all colloidal particles
(0.01 to 1.0 microns) from water and some of the largest dissolved
contaminants. The pore size in a UF membrane is mainly responsible
for determining the type and size of contaminants removed. In
general, membrane pores range in size from 0.005 to 0.1 micron.
Ultrafiltration uses hollow fibers of membrane material and the feed
water flows either inside the shell, or in the lumen of the fibers.
Suspended solids and solutes of high molecular weight are retained,
while water and low molecular weight solutes pass through the
membrane. Ultrafiltration is not fundamentally different from reverse
osmosis, microfiltration or nanofiltration, except in terms of the size
of the molecules it retains. When strategically combined with other
purification technologies in a complete water system, UF is ideal for
the removal of colloids, proteins, bacteria, pyrogens, proteins, and
macromolecules larger than the membrane pore size from water.
 3. Ultra Violet Water Purification
Ultraviolet water purification is the most effective method for
disinfecting bacteria from the water. Ultraviolet (UV) rays penetrate
harmful pathogens in the water and destroy illness-causing
microorganisms by attacking their genetic core (DNA). This is
extremely efficient in eliminating their ability to reproduce.
Disinfecting the water with Ultraviolet light is exceptionably simple,
effective and environmentally safe. UV systems destroy 99.99% of
harmful microorganisms without adding chemicals or changing the
water’s taste or odor. UV water purification is usually used with other
forms of filtration such as reverse osmosis systems or carbon block
filters.

4.Alternative Process or Technology

As we are using boring system to procure our raw material, the water
level of the are will get damaged over a period of time. Thus, we have
also planned to implement RAIN WATER HARVESTING
FACILITY.
Rain Water Harvesting is the process of collecting rain water and
using it in the period of water scarcity. We will use roof top rain water
harvesting facility installed in our plant premises. For this, the first
requirement is to intercept the rain water and direct its flow. The
water will be then collected in a special kind of storage tank. The first
flow of rainwater usually carries dirt, leaves, insects and other
impurities. We will use a detachable pipe to divert the first rainwater.

5.Plant Location
Our Plant will be located in the Kokar Industrial Area of Ranchi. The
reasons for choosing Kokar as our plant location are as follows: -

 According to the hydrogeological, pre & post water level maps

of Ranchi, the water level in Kokar is sufficient and is safe to
use.
 The household water supply around this area is not of a very
good quality which will induce sales of our product.
 This area is very close and connected to all other places in
Ranchi facilitating seamless distribution of the product,
 Being located in a prime location like this , the availability of
skilled as well as unskilled workers will never be a problem to
us.
 Commercial electricity connection is easily available in this
place
 This place is also very near to petrol pumps and motor garages
which will enable our transportation vehicles to get their
servicing done as and when needed.
 6.Government Certifications
The following certifications and licenses will be needed by us for
laying out the plant: -

 Plant Setup Registration

 Small Scale Industries Registration
 ISI Certificate from the Bureau of Indian Standards
 Pollution Control Certificate
 Water Quality Test Report from an authorized laboratory
 Trademark Registration
 ISO Certificate
 Plant Layout Sanction
 Electrical Load Sanction
 Documents related to the lease of land

7.Labor
For our plant, we have planned to hire the following people: -

 5 workers for the plant

 2 drivers along with one helper for transportation
 1 cleaner
 8.Machineries & Equipments
The equipments needed for our plant along with their estimated costs
are given below:
EQUIPMENTS COST(RS.)
 CHILLER MACHINE 40000

 MULTI-STAGE 350000
PURIFIER 3200
 WATER PUMP 200000

 TRANSPORTATION
VEHICLE 50000
20000
 COMPUTERS
1500
 STORAGE TANKS (5)
2000
 PIPES

 PLASTIC BOTTLES AND 300000

GALLONS
5000
 GENERATOR SET

 BRAND LABELS & 15000

STATIONARY

 BOTTLE CAP SEALING

MACHINE

All the prices of the products are from verified sellers and the
equipments will be procured from IndiaMart.
The Total Outlay in Machine & Equipments is Rs. 986700
approximately.
 9.Power Requirement
The power requirement for our plant will be approximately 60 HP.
We will apply for a commercial electricity connection to the State
Electricity Board.

10. Plant Layout

The Layout of the Plant is depicted below: -
 FINANCIAL ANALYSIS
Financial analysis is the process of evaluating businesses, projects,
budgets, and other finance-related transactions to determine their
performance and suitability. Typically, financial analysis is used to
analyze whether an entity is stable, solvent, liquid, or profitable
enough to warrant a monetary investment.

1.Total Cost of the Project

The cost of project represents total of all items of outlay associated
with a project which are supported by long -term funds.
The estimation of the cost of project is the primary task and is done
for the purpose of estimation of funds required for starting the
business. In our business, it is the sum total of the outlays of the
following.
Sl. No. Particulars Amount (Rs.)
1. Rent (15000 / month) 180000
2. Civil Works 150000
3. Plant & Machinery 979700
4. Raw Materials 7000
5. Manpower Cost
1. 5 Workers 600000
2. 2 drivers and 1 180000
helper
3. 1 Cleaner 36000
Total 816000
6. Advertising Cost
1. Free Samples 5000
2. Hoardings 4000
3. Flyers 1000
Total 10000
7. Legal Cost 3000
Total Cost 2145700
 2.Total Production Cost

Production Cost Refer to The Cost Incurred by A Business for

Manufacturing a Product or Providing Service. Production Cost
Include Expense Like Labor Cost, Raw Material, Rent, Electricity.
Particulars Amount(Rs.)
Raw Materials 7000
Rent 180000
Manpower Cost 816000
Electricity 97000
Total 1100000

3.Means of Finance
We have planned to avail a loan of Rs. 1300000 at 10% p.a. interest
rate. We will avail this loan from the State Bank of India under the
MSME Loan Scheme.
Particulars Amount (Rs.)
Owner’s Capital
1. Swapnil Roy 300000
2. Anshul Vikram Singh 300000
3. Nabayan Chattopadhyay 300000
Total 900000
Bank Loan 1300000
Interest Rate 10% p.a.
Interest Amount 130000
 4.Revenue Generation
Product Type Price/unit (Rs.) Units Sold in 1 Amount (Rs.)
Year
1 L Bottle 9 12000 108000
2 L Bottle 19 12000 228000
5 L Bottle 39 12000 468000
20 L Gallon 99 12000 1188000

Thus, the Total Expected Revenue in a year shall be Rs. 1992000

5.Projected Profit & Loss A/C

(For the Year Ended 31st March, 2021)
Dr. Cr.
Particulars Amount Particulars Amount
(Rs.) (Rs.)
Rent 180000 Sales 1992000
Electricity 97000
Charges
Manpower 816000
Cost
Carriages 4000
Legal 3000
expenses
Interest 130000
Depreciation 97970 (10 %)
Advertising 10000
Indirect 5000
Expenses
Net Profit 649030
Total 1992000 Total 1992000
6.Projected Cash Flow Statement
(For the year 2020-21)

Particulars Amount (Rs.) Amount (Rs.)

Cash Flow from
Operating Activity
Sales 1992000
Depreciation 97970
Manpower Cost (816000)
Cash Purchase (986700)
Interest (130000)
Tax (18% on Net (116825)
Profit)
Net Cash Flow 40445
from Operating
Activity

Cash Flow from

Financial Activity
Loan from Bank 1300000
Interest (130000)
Net Cash Flow 1170000
from Financial
Activity

Cash Flow from

Investment
Activity
Investment in Plant (979700)
& Machinery
Net Cash Flow (979700)
from Investment
Activity

Net Cash Flow 230745

Cash Position at 900000

the beginning of
the year
 Cash Position at
the end of the year 1130475

7.Projected Balance Sheet

(For the year 2020-21)

Assets Amount Liabilities Amount

(Rs.) (Rs.)
Plant & 979700 Capital 2200000
Machinery
Civil Works 150000 Net Profit 649030
Accumulated 97970
Depreciation
Debtors 490615
Cash 1130745
Total 2849030 Total 2849030

8.Debt-Service Coverage Ratio

The debt-service coverage ratio (DSCR) is a measurement of the cash
flow available to pay current debt obligations. The ratio states net
operating income as a multiple of debt obligations due within one
year, including interest, principal, sinking-fund and lease payments.
DSCR = (Net Operating Income)/ (Debt Service)
= (779030)/ (130000)
= 5.9 approximately
9.Pay Back Period
The payback period refers to the amount of time it takes to recover
the cost of an investment. The desirability of an investment is
directly related to its payback period. Shorter paybacks mean more
attractive investments.
PBP = (Total Investment) / (Net Annual Cash Inflow)
= (2145700) / (230745)
=9.3
This, implies that the Pay Back Period for our Project is
approximately 9 years.

10. Break Even Point

The break-even point formula is determined by dividing the total

fixed costs associated with production by the revenue per individual
unit minus the variable costs per unit. In this case, fixed costs refer
to those which do not change depending upon the number of units
sold. Put differently, the breakeven point is the production level at
which total revenues for a product equal total expense.

Particulars Amount
Sales 1992000
Variable Costs
1.Raw Materials 7000
2. Electricity 97000
Total 104000
Fixed Cost
1.Manpower Cost 816000
2.Interest 130000
3. Rent 180000
4. Depreciation 97970
Total 1223970
Contribution (Sales – 1888000
Variable Cost)
Break Even Point:
(Fixed Cost) / =(1223970)/(1888000)*(1992000)
(Contribution) * (Sales ) =1291392

Thus, the Break-Even Point for our organization is 1291392 in

terms of sales value.
ANALYSIS & INTERPRETATION

1.Conclusion

Thus, we arrive at the conclusion that this project if executed

successfully will definitely prove to be profitable as well as will
contribute to the society at large. We have also planned to get
into all the CSR activities once our organization reaches its
break even. Through this project report we have learnt a great
deal about all the three aspects of Project Management namely
Market, Technical & Financial. Also, we gained some first-hand
experience about how to handle the operations of a business and
what it really takes to be successful in the business world. The
project has also helped us enhance our entrepreneurial skills and
we are looking forward to start a venture of the same kind in the
near future.
2.References

Books referred:
 Marketing Management by Philip Kotler
 Human Resource Management by Gary Dessler
 Financial Management by M.Y. Khan & P.K. Jain
 Project Management by P. Chandra
 Accountancy by D.K. Goel
 ANNEXURE

1. Hydrogeological Map of Ranchi

2. Pre-Monsoon Water Level Depth Map
3. Post-Monsoon Water Level Depth
4. Survey Questionnaire
5. Machineries & Equipments

Chiller Machine Multi-Stage Purifier

Water Pump Transporting Vehicle

Computer Set Water Storage Tanks

Water Pipes Generator Set

Bottle Cap Sealing Machine