The document outlines a business plan for Mahavir Bats Pvt. Ltd., a cricket bat manufacturing small-scale industry located in Rajkot, Gujarat. It provides details on the promoters and their backgrounds, justification for the location, production process involving growing, shaping, and finishing willow wood into cricket bats, and the expected market potential given the popularity of cricket. The plan projects costs, sales, profits, and growth over time to evaluate the viability and future of the business.

1. A
BUSINESS PLAN
ON
MAHAVIR BATS PVT. LTD.
PRODUCT : CRICKET BATS
PREPARED BY : RAIYANI KHYATI V.
CLASS : M.B.A.
ROLL NO : 117360592032
COLLEGE : N.R.VEKARIYA -JUNAGADH
ACADEMIC YEAR : 2011-12
SUBMITTED TO : DR. RAJESH PATEL

2. DECLARATION
I have undersigned RAIYANI KHYATI V. a student of M.B.A. hereby
declare that the project report is my own work.
This work has not been previously submitted to any other university for any
other examination.
Date :
Place : JUNAGADH
Signature
[RAIYANI KHYATI V.]

3. ACKNOWLEDGEMENT
Time has no passage to mark its existence but we have language to express.
No doubt that the word ‘Thanks’ is very small to express my hearty feelings.
Last but not least, I am indeed thankful to my parents for their moral support,
encouragement and involvement in my mission and other friends for their help and
co-operation.
RAIYANI KHYATI V.

4. PREFACE
Small Scale Industry is the pillar of industrialized Indian economy. In India,
the S.S.I. provides more than five times employments than the Large Scale Industry.
More over, in a short time period,. I have made a notable contribution in the adoption
of modern techniques.
It is very good opportunity for me to submit this report for under the
prescribed syllabus of Gujarat Technical University,. The object of this report is to
develop entrepreneur skills and awareness. For this purpose the product of Cricket
bats for cricket. This project provided me with the knowledge of various aspects of
launching a new product in this era. I have tried my level best to make this report
most precise, relevant and in systematic manner.
]

5. INDEX
SR. NO. NAME OF THE TOPIC PAGE NO.
1 Introduction...........................................................................01
2 Project at a glance.................................................................02
3 Implementation schedule......................................................03
4 Promoter’s background.........................................................04
5 Justification of location.........................................................06
6 Basis and presumption..........................................................09
7 Pro. details.............................................................................10
8 Details of Raw material........................................................11
9 Use of application of product................................................12
10 Market Potential....................................................................13
11 Process outline......................................................................14
12 Capacity utilization...............................................................16
13 Financial aspects...................................................................17
14 Fixed capital details..............................................................18
15 Working capital details.........................................................20
16 Total capital investment........................................................21
17 Sources of finance.................................................................22
18 Interest on investment or capital...........................................22
19 Depreciation schedule...........................................................23
20 Cost of production.................................................................23
21 Sales turnover........................................................................24
22 Annual fixed cost..................................................................24
23 Profitability analysis.............................................................25
24 BEP Analysis........................................................................26
25 Ratio analysis........................................................................27
26 Projection..............................................................................28
27 Future plan............................................................................29

6. INTRODUCTION
This. is economic strength of country. This fact is realized by India after
independence. But in recent years, . India has undergone rapid changes and had
flourished in India in early times. S.S.I. provides Raw Material to large scale units
and to be partner of success. The most important role of S.S.I. in Indian economy is
as greater of employment and equal distribution of income.
MAHAVIR BATS PVT LTD. is one of the units of S.S.I. The purpose of this
unit is to manufacture cricket bats. Cricket is very popular and played not only in our
country but all over the world. After partition of the country in 1947, a large number
of workers migrated to India. They subsequently settled down in Gujarat especially
in Saurashtra, where they started manufacturing of cricket instruments.

7. PROJECT AT A GLANCE
Name of the unit - MAHAVIR BATS PVT. LTD.
Constitution - Private limited
Type of the unit - Small scale manufacturing unit
Product’s Name - Cricket bats
Location of unit - Manufacturing unit
Plot no: 13,
Metoda, GIDC
Rajkot, Gujarat.
Address of the office - G.I.D.C. Metoda,
Plot No. 6
Rajkot.
Co. registration no - R94900GJ013
Form of the unit - Partnership
S.S.I. registration no. - Applied for
Location of the unit - MAHAVIR BATS PVT. LTD.
G.I.D.C. Metoda, Plot No. 6,
Rajkot.
Employee - 10 persons
Web site - www.MAHAVIR bats.com
E-mail - MAHAVIRbats@gmail.com
Working days - 300

8. IMPLIMENTATION SCHEDULE
Sr. No. Particular Period
1 Collection of data 2 months
2 Preparation of project report 1 month
3 Local formalities 1.5 month
4 Selection of site 1 month
5 Construction of building 3 month
6 Machinery installation 1 month
7 Recruiting personnel 1 month
8 Selection of procurement 1 month
9 Receipt of Raw material 15 days
10 Obtaining power and water connection and 1.5 months
installation of power facilities
11 Registration of S.S.I. 1 month
Total 24.5 months

9. PARTNER’S BACKGROUND
PARTNER – 1
Name - Ujjval P. Mithani
Age - 20
Address - “TAPOJVAL”
Royal park,
Kalawad road,
Rajkot.
Qualification - MBA
Present activity - Promoter of the xenon cable pvt.
Financial contribution - 50%
Responsibility - Managing Director
Experience - 3 years in management

10. PARTNER – 2
Name - Siddharth V. Padaria
Age - 24
Address - “Amivarsha”
Dhoraji road,
Jetpur.
Qualification - MBA
Present activity - The M.D. of Xenon cable Pvt Ltd
Financial contribution - 25%
Responsibility - C.E.O
Experience - 3 years

11. PARTNER – 3
Name - Ankit H. Vora
Age - 22
Address - “Madhav”
Race Course Park,
Rajkot.
Qualification - MBA
Financial contribution - 25%
Responsibility - Production manager,
Finance Dept. & HRM
Experience - 2 years

12. JUSTIFACTION OF LOCATION
Site of selection is an important activity because a good location may reduce
the cost of production. Locating a business involves a large relatively permanent
investment. If the site selection is not proper, all the money spent on factory building
machinery and their installation will go in waste and the owner has to suffer a great
loss. Therefore, the site for the factory should be selected very carefully.
According for our purpose industrial proposition at Metoda, GIDC, Taluka –
Rajkot, District – Rajkot, Gujarat state is selected by us. All infrastructure facilities
available the same places are as follows.
A… TRANSPORTATION
The purposed factory will be at Metoda, Rajkot well connected by three
modes of transportation, Railway, Roadway & Airway. The factory site is in
proximity with the Rajkot Railway Junction and Domestic Airport, the
national highway – 8B and the state highway Ahmedabad-Rajkot-Kandla.
The nearest international city is Mumbai 45 minutes flying time and
the nearest major port is Kandala 200 km. by road. So all kind of transporting
vehicle, truck, train, ship, plane etc are available not to far from the site and
hence our location in respect of to transport availability for the product
concerned is the most suitable one.
B… AVAILABILITY OF RAW MATERIAL
Mainly for our product BAT is needed other raw materials which are in detail
given later in this report. All those raw materials are available at Ahmedabad,
Bombay, and Delhi & Chennai.

13. C… MAN POWER
All manufacturing concern small or big always depends on available man
power skilled, unskilled, and semiskilled. We have also given a thought to
this matter and found that ours is an area cheep labour is easily available in
our project.
D… MARKET
All products manufacturers always think about market of this product. Our
nearest and main markets are Bombay, Delhi, Ahmedabad, Rajkot, Baroda,
Jamnagar, Mahesana etc.
E… WATER FACILITIES
Water is not required for product purpose. It is required only for domestic
purpose. Arrangement will be made at the site by installing tube well.
F… SOURCES OF FINANCE
Finance is oxygen or blood for the industry and thus the procurement of
finance is very vital. Proximity of the site, to the Rajkot city makes the source
of finance closes to the concern. The various financial industries like the
nationalized banks, commercial banks, GSFC branch are located in Rajkot
city near to the site of the factory.

14. BASIS & PRESUMPTION
The profit is drawn on the basis of following presumption.
1… No. of shifts - 2 shifts (8 hours each shifts)
Working days - 300 days
Working hours - 16 hours
2… The cost of land is based on the prevailing rates at Metoda – GIDC,
Rajkot.
3… The interest rate and depreciation rate are fixed as per the government
specification.
4… The salary and wages have been decided on the basis of local markets.
5… Break Even Point has been calculated on the full capacity utilization
basis.

15. PRODUCT DETAILS
Generally, these products are based on the polishes and wooden bat the
purpose of unit is to produce qualitative product in the less cost.
To make proper and qualitative bat iroper shape, proper weight, qualitative
wood, initial stitching etc. are needed. Because these things are help the bowler in
delivery and spinning the ball. In this unit, four types of cricket balls are produced
according to quality. The hockey and cricket balls are duco finished. There is also the
demand for unglazed balls. So, unglazed balls are also produced in this unit.

16. DETAILS OF RAW MATERIALS
Raw materials are one of the important things for production. If there is no
raw material then there would be no product of this unit. The firm obtains most of its
raw material from the local market.
The important raw materials required for the manufacture of cricket bat is
wood and bamboo wood. Thus, the raw materials are available in open market in
Gujarat. So, unit does not find any difficulty in collecting raw materials.

17. USE & APPLICATION OF PRODUCT
Cricket is the most popular game in our country as well as in all other
countries of the world.
Care is to be taken to see that the wood should be properly seasoned and free
from any kind of termites. The wood is selected and sends to the production
department for its further process. The use of bat is very obvious relating with
playing cricket.

18. MARKET POTENTIAL
Cricket is a very popular game in India as well as all the countries all around
the world. So it is in demand in the countries of the world.
Looking to the internal and increase in export demand, there is a good scope
for starting new manufacturing units in different parts of the country. Rajkot is the
starting place or city, where a large number of workers started manufacturing cricket
bats. The demand for quality goods is increasing hence there is a scope for another
10 to 15 new units every year. The raw materials required for the manufacture of
cricket bat indigenously available. Even in rural areas, these games are very famous.

19. PROCESS OUTLINE
The heart of any unit is manufacturing department. This department is also
called lubricant oil of any unit. The main aim of any industry is to manufacture
something extra-ordinary which attracts the customers. Let us see the process of
manufacturing of this unit.
Growing Willow
The Cricket Bat Factory use only the best English willow for the
production of their cricket bats. Salix Caerulea or Alba Var
varieties are grown and harvested by our Willow Manufacture.
Splitting Rounds
Once the willow has been harvested and brought back to the
factory at Robertsbridge in East Sussex it is cut into roundels
and then separated into splits (each of which will form a single
cricket bat). The bark is then removed.
Cutting Clefts
The wood is then machined into a cleft (as illustrated). At this
stage the operator decides which area of the cleft will become
the face of the bat. It is obviously vital that the face should be
free from blemishes and knots as these may impair performance.

20. Seasoning
Willow is a soft fibrous reed which in its natural state is very
moist. In order to produce a bat of good performance and weight
it is necessary to dry the clefts. To do this they are placed in a
custom built kiln in which the temperature is monitored and
maintained at approximately room temperature. The willow
remains within the kiln for approximately six weeks.
Once the cleft has been dried, it is pressed, as illustrated, at
approximately 2000lbs per square inch. This produces the drive
and durability that is essential for good performance.
Fitting Handle
The handle, a laminated construction of cane and rubber strips
(treble sprung), is fitted through the precise splicing of the
handle into the blade. Dustin will set the handle slightly forward
of the blade ensuring a perfect pick up once the bat is made. This
enhances performance and accentuates the bow in the bat. The
handle is secured using a water resistant wood glue and left
overnight to dry.
Bat Making
At this stage the bat now comes under the
expert eye of master bat maker Dustin
Gaskell, Dustin first came to work for
Gabba Sporting Products at the age of 17
and has developed over the years into an
expert in the fields of cricket bat
manufacture, working with some of the
worlds best cricketers. He uses traditional
tools such as the draw-knife to balance and
shape the bats to perfection.
As with all the other stages of production,
the hand shaping is absolutely unique to
each bat. During the shaping, the bat will be
removed from the vice and tested for
balance and form by the bat maker, using
his knowledge of the game as a point of
reference for balance and pick-up. Once
shaped, the bat will be both course and fine
sanded. Like the shaping, the sanding is
dependant upon the eye and skill of our
Batmaker. The characteristic finish of a
Glide bat can be attributed to very fastidious
sanding, which has always been a point of
pride.

21. The handle is bound using the finest quality
twine. The bat is mounted in a lathe which
is controlled using a foot treadle; the handle
is brushed with glue and whipped with the
twine which provides strength at the top of
the splice and throughout the length of the
handle.
The blade is then finely burnished using a
compound wax which polishes and flattens
the wood leaving a satin finish.
Note: traditionally bats were 'boned' instead
of polished - the use of a bone or piece of
cane to compress the fibres giving both the
final finish and a final pressing. With The
Glide and any good bat production, if the
pressing and sanding are correct, then the
finish is obtained though burnishing, so
'boning' is never necessary. The key to our
finish is not a bone or a clever polish, but
the quality of the sanding.
Once bound, Chevron grips are fitted to the
handle and labels are applied to the face,
back and sides of the bat. All our bats then
undergo a final quality inspection, before
being packaged and distributed to shops.
With each bat is carried the hope that the
time and effort we expend will be rewarded
by the owner's care and attention, and great
success at the wicket. Please contact us for
more information on out personally hand
crafted cricket bats.

22. CAPACITY UTILIZATION
The total capacity installed is 25,000 balls per month. In the first year, 50%
of the capacity shall be utilized i.e. the month production of balls will be 15,000. In
the second and third capacity utilization will be 60% and 70% respectively.
Actually the capacity of the unit is always fluctuating. At the time of
worldcup or cricket tournament, the demand of cricket balls will be increased. So
unit can produce more balls at that time.

23. FINANCIAL ASPECT
A. Fixed capital
1. Land
Sr. no. Particular Area Rate Total value
(in sq. feet) (in sq. feet) (In Rs.)
1 Open land 4000 1000 40,00,000
2. Building
Sr. no. Particular Area Rate Total value
(in sq. feet) (in sq. feet) (in Rs.)
1 Building area 3500 500 17,50,000
covered for
office, storage
etc.
3. Machinery & Equipment
Sr. Particular Cost
No.
1 HP Motor 250000
2 Power operated press 170000
3 Automtic injection moulding machine 90000
4 Stamping press qty. 3 90000
6 Electric drying oven heated 2 80000
7 Electrification, installation and transportation
charges
8 Other equipments 40000
9 Stitching frames 66000
10 Other office equipments 20000
Total 8,06,000

24. 4. Office Equipment
Sr.no. Particular Quantity Rate Amt.(Rs)
1) Computer + Printer 2 25,000 50,000
2) Telephone 3 5,000 15,000
3) Air Condition 2 20,000 40,000
4) Fax 1 10,000 10,000
5) Water cooler & purifier 2 10,000 20,000
6) Vacuum cleaner 2 5,000 10,000
Total(Rs.) 1,45,000
5. Furniture
Sr.no. Particular Quantity Rate Amt.(Rs)
1) Sofa set 3 8,000 24,000
2) Revolving chairs 2 3,000 6,000
3) Office chairs 5 200 10,000
4) Cabin table 2 6,000 12,000
5) Cupboards 3 3,000 9,000
6) Glasses & Wooden - - 27,000
Total(Rs.) 79,000
6. Total fixed capital

25. Sr. no. Particular Amt.(Rs)
1) Land cost 40,00,000
2) Building 17,50,000
3) Machinery & equipment 8,06,000
4) Office equipment 1,45,000
5) Furniture 79,000
Total(Rs.) 67,80,000
B. Working Capital
1. Raw material
Sr.no. Particular Quantity Rate Amt.(Rs)
(in kg.) (Per kg.)
1) Wooden 3495 100 3,49,500
2) Rubber 4000 100 4,00,000
3) Fevicol 2000 50 1,00,000
4) String 500
Total (Rs.) 8,50,000
2. Salary & Wages(1 month)
Sr.no Designation No. of Rate per Amt.(Rs)
. person man
1) Production Manager 1 14,000 14,000
2) Marketing manager 1 14,000 14,000
3) Accountant 1 6,000 6,000
4) All officers 6 6,000 36,000
5) Receptionist 1 3,000 3,000
6) Peons 2 2,000 4,000
7) Supervisions 1 4,000 4,000
8) Skilled worker 5 5,000 25,000
9) Unskilled worker 10 1,500 15,000
10) Security guard 1 1,500 1,500
Total (Rs.) 1,22,500
3. Utilities(One month)

26. Sr. no. Particular Amt.(Rs)
1) Power 18,000
2) Water 2,000
Total (Rs.) 20,000
4. Other contingent expenses
Sr. no. Particular Amt.(Rs)
1 Postage & stationary 1,000
2 Repair & Maintenance 1,500
3 Telephone Bill 2,000
4 Transportation Charges 3,000
5 Insurance Premium 2,000
6 Advertising expense 5,500
7 Sales expenses 1,500
8 Misc. Expenses 1,000
Total Expenses (Rs.) 17,500
5. Total working capital
Sr.no. Total Amt. Total Amt.
Particular
(One Month) (Three Months)
1) Raw material 1,22,500 3,67,500
2) Salary & Wages 8,50,000 25,50,000
3) Utilities 20,000 60,000
4) Other contingent 17,500 52,500
expenses
Total (Rs.) 10,10,000 30,30,000
C. Total Capital Investment
Sr.
no. Particular Total(Rs)
1) Total Fixed capital 67,80,000
2) Total Working capital 30,30,000
Total Project Cost 98,10,000

27. D. Sources of Finance
Total Amt Loan of Owner
Sr.no. Particular (Rs.) Borrowed Capital
Total Fixed
1)
Capital 67,80,000 9,00,000 58,80,000
Total Working
2) Capital 30,30,000 11,00,000 19,30,000
Total Amt (Rs.) 98,10,000 20,00,000 78,10,000
E. Interest On Capital
Sr. Particular Amt (Rs.) Rate of Total Amt.
no. Interest Of Int.(Rs.)
1 ICICI Loan 20,00,000 12% 2,40,000
2 Own Contribution 78,10,000 8% 6,24,800
Total Amt. of Interest 8,64,800
F. Calculation of Depreciation
Sr.no. Particular % Total(Rs)
1 Building 10% 1,75,000
2 Mach & equipment 20% 1,61,200
3 Office equipment 10% 14,500
4 Furniture 15% 11,850
Total Amt. 3,62,500
G. Cost Of capital

28. 1stYear (60% Prod.
Particular
Capacity)
Variable Cost
Raw Material 1,02,00,000
Wages 4,80,000
Utility 2,40,000
Other contingent Exp. 2,10,000
Total Variable Cost 1,11,30,000
Fixed Cost
Salary Of Staff 9,90,000
Depreciation 3,62,550
Total Interest 8,64,800
Other exp.(20% of the contingents exp.) 42,000
Total Fixed Cost 22,59,350
Total cost 1,33,89,350
OPERATING STATEMENT
Particular Amt.(Rs.) Total (Rs.)
Sales [A] 13516000
Cost of production
Raw Material 1020000
Utility 240000
Wages 480000
10920000
Add opening stock -
Less finished stock 115600
Total opening cost [B] 10804400 1084400
Gross profit (A-B=C) 2711600
Indirect Exp.
Salary staff 990000
Dep. 362550
Other expenses
Variable (50% of other exp.) 105000
Fixed (20% of other exp.) 42000
Total indirect exp. [D] 1499550 1499550
EBIT (C-D=E) 1212050
Interest on own capital 624800
Interest on borrowed capital 240000
Total interest [F] 864800 864800
EBT (E-F=G) 347250
-tax (50%) 173625
EAT 173625

29. RATIO ANALYSIS
 Return on investment
EBIT
Return on investment =
Total capital employed
1212050*100
Return on investment =
9810000
Return on investment = 2.36 %
 Cost of capital
Interest on owned capital + interest on
Cost of capital = borrowed capital *100
Capital employed
864800*100
Cost of capital =
9810000
Cost of capital = 8.82 %
 Gross Profit Ratio
Gross Profit*100
Gross Profit Ratio= Total sales
2711600*100
Cost of capital =
13516000

30. Cost of capital = 20.06 %
 Net profit ratio
Net profit ratio*100
Net profit ratio =
Total sales
347250*100
Net profit ratio =
13516000
Net profit ratio = 2.57 %
 Fixed cost to net worth ratio
Fixed cost
Fixed cost to net worth ratio= Net worth
6780000
Fixed cost to net worth ratio=
9810000
Fixed cost to net worth ratio= 0.69 %

31. FINANTIAL STATEMENT
 TRADING & P&L ACCOUNT
Particulars Amount (Rs.) Total amount

32. Income
Sales 13516000
+ closing stock 115600 13631600
(-)Mfg. expenses
Opening stock -
+ purchase of RM 16200000
+ utility 240000
+wages 480000 10920000
Gross profit 2711600
(-) indirect expenses
Other exp.
Variable 105000
Fixed 42000
Salary of staff 990000
Depreciation 362550
Interest of borrowed capital 240000
Interest of owners capital 624800 2364350
Net profit 347250
 Balance sheet
Particulars Amount (Rs.) Total amount

33. Liability
Capital
Promoters capital 7810000
Borrowed capital 1750000 9560000
Reserves & surplus ---
Profit & loss account 173625
9733625
Assets
Fixed assets
Land 4000000
Building 1750000
(-)dep 175000 1575000
Machinery & equipment 806000
(-) dep 161200 644800
Office equipment 145000
(-) dep 14500 130500
Furniture 79000
(-) dep 11850 67150
Current assets
Debtors 2350575
Cash 850000
Closing stock 115600 3316175
9733625
BEP ANALYSIS

34. In this unit only one type of product we produce.
Price of product = Rs.3003.56
So, Production unit
= Total sales
Sales price per unit
= 13516000
3003.56
= 4500 unit.
Average variable cost
= Total variable cost
Production unit
= 11130000
4500
= Rs. 2473.33
Contribution
= sales price – average variable cost
= 3003.56-2473.33
= 530.23
Break even point (in unit)
= Total fixed cost
Contribution
= 2259350
530.23
= 4261 unit.
(In Rs. 12798169.16)
RISK FACTORS

35. • Changes in the government policy may after the profitability of the firm.
• There is high level of competition with existing unit like RBK, PUMA, SG,
SS TON etc.
• In the future economic environment changes so that organization affected like
inflation, recession.
• A market of other firm high level expenses to advertise and this unit not bear
that advertising expenses.
FUTURE PLAN

36. MAHAVIR BATS PVT LTD. has specified future plans to follow. It has
fixed goals to be achieved in future. Certain future plans of this unit are as under.
• Company wants to increase its sales and profit and be a large scale industry.
• Company wants to wider its network in whole country. For it they are
deciding to establish branches in most of the state in India.
Thus, this company has bright future vision and it wants to extend its coverage.
CONCLUSION

37. A developing country is necessary to develop the small sectors or
cottage industry because to balanced growth means widely distribute of income. A
small sector is also creating employment in the economy as the production is done
by the manpower.
In this situation I am very proud to study this subject and this business
and prepare report on it.