LK PICKLES

PROJECT REPORT

JAYANT KUMAR
18338
BFIA 2B
1. INTRODUCTION

 The project involves setting up and running of a food production

unit under the name and style of LK Pickles.
 The project is proposed to be located in Rohini, Delhi.
2. PROMOTER

 The unit will function as a sole proprietary concern under the

proprietor of Dr. Harshit, aged 56, residing in Rohini.
 The promoter has 15 years of experience in marketing of pickles in
Ranchi.
 He has also received training in pickle manufacturing from Food
Craft Institute Ranchi.
 STRENGTHS WEAKNESSES

Experienced owner.
New brand.
Readily available raw material and labour
No local contacts.
Easily accessible location.
Daily household product.

SWOT
OPPORTUNITIES THREATS

Nuclear families. (Don’t have homemade pickle)

Fluctuation in material prices.
Located close to railway station.
High crime rate.
Contacts in hotels/other institutions.
TECHNICAL
ANALYSIS
LOCATION
 The project is proposed to be located at Rohini in Delhi.

LAND AND BUILDING

• The proposed unit will function in a rented building bearing a
building number i6/18 of block I.
• The unit requires a building area of 90 square meters.
• The land and building space is enough for properly carrying out all
activities of the unit.
RAW MATERIALS

The important raw materials required by the unit are:

 Mango
 Lime
 Ginger
 Garlic
 Pickle powder
 Oil
All the raw materials required for the unit are available in any quantity
at wholesale rates at EM supplies store which is just 500meters away.
There are many other suppliers within 2km radius.
TRANSPORTATION

 Everything will be transported using small trucks owned by the

proprietor.
 The unit is located on the main road and is also near a railway
station.
 There is enough space in premises for parking the vehicles and
smooth flow of men and materials.
LABOUR

 Both skilled and unskilled labourers are available in sufficient

quantity at nearby Chowki.

POWER
• Power requirements for the project are minimal and the
area has never experienced power outages.
WATER

 The main water requirement for the unit is for drinking and sanitation
purpose of workers. MCD water is supplied directly to the unit every
morning.

BY PRODUCTS AND EFFLUENTS

• The proposed unit will not generate any by products or effluents
and complies with all the government norms.
SCOPE AND MARKETING

 The proposed products of the unit are pickles. Pickles are everyday
food products and have a ready market always.
 In Delhi, all class of consumers consume readily available pickles.
 The unit proposes to make good quality pickles at reasonable rates,
therefore it will be able to easily establish its brands name in the
market.
 The produce will be sold to local wholesalers.
SCOPE AND MARKETING

 The targeted market prefers ready to eat pickles over homemade

pickles since most of them are from nuclear families where generally
people don’t have time to prepare pickles at home.
 The promoter has been involved in similar food production business
since the last few years and has quite a lot of experience in this field.
 He also has good connections with various markets, stores, hotels
etc.
 All this will enable him to market the products without any difficulty.
FINANCIAL
ANALYSIS
Estimated costs and production
PROFIT CALCULATION

SALES 48,00,000

LESS COST 40,00,000

LESS INTEREST 1,05,000

LESS TAX 1,39,000

NET PROFIT 5,56,000

CONCLUSION

 From the above economic and technical analysis, it can be

concluded that the unit can function profitably and the project will
be successful.