Business Plan

ROYAL CEMENT INDUSTRIES

42/7 Kalyani pukur lane, Kolkata
Email- pakhisen181@gmail.com

SWEETY SEN
 INTRODUCTION

ROYAL CEMENT INDUSTRIES is a trust brand in cement market. Being a new brand it has
created a good market catch and is gaining popularity day by day. Many big projects are being
made with our product and tunes out to be a great one.

Keeping in mind about the pockets of people we have kept the range in a small price so that even
new promoters can avail and not use fake ones
Qualitative products always turn out good than quantitative products . We are not saying other
brands cement are not good but ROYAL CEMENT is far away from mixtures and always use
genuine material to make things last longer
As of now it will be launched in West Bengal and later on it will be launched in other states. And
later it will be a very demanding item for the making of new projects in the state.
Bank Loan is the main financial pillar for any startup business. Likewise ROYAL CEMENT
company also focuses on the same to start the business.
 Organizational Plan:
The main moto of ROYAL CEMENT INDUSTRIES is to make people use the genuine products
and not the mixtures. It will make the project stronger and will last longer. And that too in a
packer friendly way.

Marketing Plan:
We kept our profit sharing very minimum and help new dealers to arise in market. We also focus
on the old dealers as well as the promotors or the high rise developers so that their products are
good enough and last longer.
MARKET RESEARCH:
The main findings related to the products ROYAL Cement Industries was the market needed a
product which will be much more authentic and will make the product long lasting. Not only
that, the various sections of different kinds of cement for different kind of project to choose
from will attract all segment of customers. From making of bridges, buildings, roads, multi high
rises,
Making things strong and long lasting is a tough thing and that too in budget, but
our products demand in market proved that nothing is impossible.
Products are much popular among retailers, builders, dealers, promoters, factory
owners etc. AS they are very easy to prepare so people are liking it and also recommending it
among themselves. Most importantly as many people are very much conscious with the product
while making something permanent and our cement makes thing strong and long listing.
Operation Plan:

Cement production consumes a huge amount of thermal and electrical energy and generates
significant amounts of greenhouse gases, such as CO2. Managers must continuously take actions to
increase equipment efficiency, reduce the use of traditional fuels and introduce more alternative
raw materials.

These challenges introduce a complexity that must be managed at business and operations levels to
maintain the required quality, productivity and cost. Managers need to know when they are on
target to meet their production, operational, quality and cost objectives. It is critical that they have
the relevant information, on which-ever platform they use, wherever they might be.

Manufacturing Plan:
As the brand is launched in West Bengal only so it has total two manufacturing units till date.
One is in Burdhawan district and another one is in Dhulagar district of West Bengal. Products
are delivered all over west Bengal form this two manufacturing factories. The factories have a
50-gallon high speed mixer, a 10 foot long lime stone crusher, and a fully automated heat or
temperature controlling module to reduce overheating. This process is already established on a
commercial scale.
Financial Plan:
ROYAL CEMENT INDUSTRIES
Pro Forma Income Statement January 2018 - December 2018
Net Sales ₹ 240,450,00
Less: Cost of Goods Sold ₹ 182,000.00
GROSS INCOME ₹ 58,450.00
Operating Expenses
Labor ₹ 12,000.00
Utilities ₹ 3,000.00
Insurance ₹ 2,400.00
Sales Promotion ₹ 12,000.00
Delivery and Transportation ₹ 6,000.00
Miscellaneous ₹ 1,500.00
TOTAL EXPENSES ₹ 36,900.00
Net Income Before Tax ₹ 21,550.00
Less: Income Tax ₹ 6,46.00
Net Income After Taxes ₹ 15,085.00

Assumptions:
Net sales based on price of Rs.2.29 per unit,
24,000 units sold in Kolkata 2,000 units per month 36,000 units sold in Howrah 3,000 units per
month 45,000 units sold in Siliguri, Darjeeling 9,000 units per month for 5months
Sales estimates based on 5% market share for packed badges in each market.
Cost of goods sold includes ingredients, packaging materials, labels, and co- packing expenses
for sealed product.
No salary will be drawn by the owners/managers in the first year. All profits will be re-invested
for new market entry and increased production rate
 ROYAL CEMENT INDUSTRIES
Pro Forma Income Statement January 2019- December 2019

Net Sales ₹ 425,940.00

Less: Cost of Goods Sold ₹ 318,060.00
GROSS INCOME ₹ 107,880.00
Operating Expenses
Labor ₹ 18,000.00
Utilities ₹ 5,000.00
Insurance ₹ 2,400.00
Sales Promotion ₹ 18,000.00
Delivery and Transportation ₹ 12,000.00
Miscellaneous ₹ 1,500.00
TOTAL EXPENSES ₹ 56,900.00
Net Income Before Tax ₹ 50,980.00
Less: Income Tax ₹ 15,294.00
Net Income After Taxes ₹ 35,686.00

Assumptions:
Net sales based on price of Rs.2.29 per unit,
24,000 units sold in Kolkata 2,000 units per month 36,000 units sold in Howrah 3,000 units per
month 45,000 units sold in Siliguri, Darjeeling 9,000 units per month for 5months
Sales estimates based on 5% market share for packed badges in each market.
Cost of goods sold includes ingredients, packaging materials, labels, and co- packing expenses
for sealed product.
No salary will be drawn by the owners/managers in the first year. All profits will be re-invested
for new market entry and increased production rate.
 Environmental Analysis:

The cement production is benefiting worldwide by use of waste fuel since 30-40% of total costs are
attributed to energy cost. The application of mineralizer has also economic advantages due to
reduction of clinkering temperatures. In this context the present work proposes analyzing different
option of waste fuels through case studies (tires, plastics, woodchips and switch grass) and the use
of mineralizer in clinker production. The results showed that the waste fuel plastic emitted 8% less
CO2 than woodchips, and all case studies emitted SO2 below of limit established by Directive PE-
CONS 31/10. The mineralizer applied reduced the specific heat consumption in 12% and the CO2
emissions were decreased in 4%.

Risk Analysis:
Like other company’s’ ROYAL CEMENT INDUSTRIES also faces some risk factors such as :-
 Market Competition
 Change of preference of people from area to area,
 Economic depression
 Lack of Proper delivery options.
 Seasonal Changes.
 Profitability Margins.