Entrepreneurship

Project Report
On

V-GUARD
STABILIZERS Submitted By-

ANAMICA NANDA 0701218312

PALLAVI KARMAKAR 0701218305
SRABANI KANUNGO 0701218306
SUMITRA RANI DASH 0701218317
SUSMITA PRIYADARSINI 0701218388

Under the Guidance of

Er. B.N. JENA
In partial fulfillment for the award of the degree of [Link]. under
BIJU PATTNAIK UNIVERSITY OF TECHNOLOGY
IN
ELECTRONICS & TELECOMMUNICATION
AT

PURUSHOTTAM INSTITUTE OF ENGINEERING &

TECHNOLOGY
 CERTIFICATE

This is to certify that Anamica Nanda(0701218312), Pallavi

Karmakar (0701218305), Srabani Kanungo (0701218306), Susmita
Priyadarsinee(0701218388) Sumitra Rani Dash (0701218317), have
completed and submitted the entrepreneurship project report on
“V-GUARD stabiliser” under my supervision and guidance, in partial
fulfillment of the requirements for the award of Degree of
Bachelor of Technology in Applied Electronics and Instrumentation
Engg. from Purushottam Institute of Engineering &Technology,
Rourkela for the year 2010-11.

Name of guide:([Link]) Name of HOD:([Link])

Dept. of ETC [Link] ETC

Place:

Date:
 ACKNOWLEDGEMENT
We express our sincere gratitude to” PURUSHOTTAM INSTITUTE OF
ENGINEERING&TECHNOLOGY” for providing us an opportunity to present an

entrepreneurship project on “V-GUARD stabilizer”

I extend my sincere thanks to [Link], Head of the Department for

providing me with the guidance and facilities for the Project.

I express my sincere gratitude to Project coordinator [Link], Staff

in charge, for their cooperation and guidance for preparing and presenting this
project.

I also extend my sincere thanks to all other faculty members of

Electronics and Telecommunication Department and my friends for their
support and encouragement.
Last but not the least, we are much thankful to all our friends for their
invaluable and variety of suggestion to make this possible.

AnamicaNanda(0701218312)

Pallavi Karmakar(0701218305)

Srabani Kanungo (0701218306)

Sumitra Rani Dash(0701218317)

Susmita Priyadarsinee(0701218388)
INTRODUCTION TO INTERPRENURSHIP
In a world where ideas drive economies, it is no wonder that
innovation and entrepreneurship are often seen as inseparable bedfellows.
The governments around the world are starting to realize that in order to
sustain progress and improve a country‟s economy, the people have to be
encouraged and trained to think out-of-the-box and be constantly
developing innovative products and services. The once feasible ways of
doing business are no longer guarantees for future economic success.

ENTREPRENEURSHIP
It is defined as the activity of an individual or associated individuals,
undertaken to initiate, maintain or aggrandize profit by production or
distribution of economic goods and services. Entrepreneurship is the
practice of starting new organizations or revitalizing mature organizations,
particularly new businesses generally in response to identified
opportunities.

Entrepreneurship is often a difficult undertaking, as a vast majority

of new businesses fail. Entrepreneurial activities are substantially different
depending on the type of organization that is being started.
Entrepreneurship ranges in scale from solo projects (even involving the
entrepreneur only part-time) to major undertakings creating many job
opportunities. Many "high-profile" entrepreneurial ventures seek venture
capital or angel funding in order to raise capital to build the business. Many
kinds of organizations now exist to support would-be entrepreneurs,
including specialized government agencies, business incubators, science
parks, and some NGOs

The different types of entrepreneurs are

1. Innovating Entrepreneur

2. Imitative Entrepreneur

3. Fabian Entrepreneur

4. Drone Entrepreneur
CHARACTERISTICS OF AN ENTREPRENEUR:
The various characteristics are

 Hard work
 Achievement
 Optimistic

ENTREPRENEUR:
Entrepreneurs have many of the same character traits as leaders.
Similarly to the early great man theories of leadership; however trait-based
theories of entrepreneurship are increasingly being called into question.
Entrepreneurs are often contrasted with managers and administrators who
are said to be more methodical and less prone to risk-taking. Such person-
centric models of entrepreneurship have shown to be of questionable
validity, not least as many real-life entrepreneurs operate in teams rather
than as single individuals

BASIC ELEMENTS OF THE ENTREPRENEUR:

(i) Risk Bearing

(ii) Innovation

FUNCTIONS OF AN ENTREPRENEUR:
 Determination of business objects
 Raising necessary funds
 Recruitment of men
 Undertaking the business operations


THE STEPS NEED TO ESTABLISH AN ENTREPRENEURIAL

SYSTEM:
1. Search for business ideals 4. Assemble the necessary
inputs resources
2. Process the ideals
5. Establish the enterprises.
3. Select the best idea
CONTRIBUTIONS OF ENTREPRENEURS:
1. Develop New Markets: Under the modern concept of marketing, markets
are people who are willing and able to satisfy their needs. In Economics,
this is called effective demand. Entrepreneurs are resourceful and creative.
They can create customers or buyers. This makes entrepreneurs different
from ordinary businessmen who only perform traditional functions of
management like planning, organization, and coordination.

2. Discover New Sources Of Materials: Entrepreneurs are never satisfied

with traditional or existing sources of materials. Due to their innovative
nature, they persist on discovering new sources of materials to improve
their enterprises. In business, those who can develop new sources of
materials enjoy a comparative advantage in terms of supply, cost and
quality.

3. Mobilize Capital Resources: Entrepreneurs are the organizers and

coordinators of the major factors of production, such as land labor and
capital. They properly mix these factors of production to create goods and
service. Capital resources, from a layman's view, refer to money. However,
in economics, capital resources represent machines, buildings, and other
physical productive resources. Entrepreneurs have initiative and self-
confidence in accumulating and mobilizing capital resources for new
business or business expansion.

4. Introduce New Technologies, New Industries And New Products: Aside

from being innovators and reasonable risk-takers, entrepreneurs take
advantage of business opportunities, and transform these into profits. So,
they introduce something new or something different. Such
entrepreneurial spirit has greatly contributed to the modernization of our
economy. Every year, there are new technologies and new products. All of
these are intended to satisfy human needs in more convenient and pleasant
way.

5. Create Employment: The biggest employer is the private business

sector. Millions of jobs are provided by the factories, service industries,
agricultural enterprises, and the numerous small-scale businesses. For
instance, the super department stores like SM, uniwide, Robinson and
others employ thousands of workers. Likewise giant corporations like SMC,
Ayala and Soriano group of companies are great job creators. Such massive
employment has multiplier and accelerator effects in the whole economy.
More jobs mean more incomes. This increases demand for goods and
services. This stimulates production. Again, more production requires more
employment

ADVANTAGES OF THE ENTREPRENEURSHIP:

Every successful entrepreneur brings about benefits not only for
himself/ herself but for the municipality, region or country as a whole. The
benefits that can be derived from entrepreneurial activities are as follows:

 Enormous personal financial gain

 Self-employment, offering more job satisfaction and flexibility of the
work force
 Employment for others, often in better jobs
 Income generation and increased economic growth
 More goods and services available
 The ability to have great accomplishments
 Reduction of the informal economy

ENTERPRENEUR:
So in short we can define Entrepreneur, Entrepreneurship &
Entrepreneurship Development as follows;

“Entrepreneurs” are people who create and grow enterprises.

OR

An “entrepreneur” is a person who plans ahead in order to provide

commodities, socio-economic needs, and other requirements for a certain
society or geographical area and particular period of time. He/she bares all
entire profits and risks of the enterprise.
 “Entrepreneurship” is the process through which entrepreneurs
create and grow enterprises.

OR

It is defined as the presence of initiative, imagination, flexibility,

creativity, a willingness to think conceptually, and the capacity to see
change as an opportunity.

OR

“Entrepreneurship development” refers to the infrastructure of public and

private policies and practices that foster and support entrepreneurship.

STAGES OF THE ENTREPRENEURSHIP:

 Discovery
 Concept Development
 Resources
 Actualization
 Harvesting

These stages are

(1) Discovery- in which the entrepreneur generates ideas, recognizes

opportunities, and determines the feasibility of ideas, markets, and
ventures

(2) Concept Development- in which the entrepreneur plans the venture,

identifies needed resources using a business plan, and identifies strategies
for penetrating markets or protecting intellectual property

(3) Resourcing- in which the entrepreneur identifies and acquires the

financial, human, and capital resources needed for the venture start-up

(4) Actualization- in which the entrepreneur operates the venture and

utilizes resources to achieve its goals and objectives

(5) Harvesting- in which the entrepreneur decides on the venture’s

growth, development or even demise.
DETAILS OF OUR FIRM

NAME OF FIRM: V-GUARD

LOCATION OF FIRM: Sahid Nagar, Bhubaneswar
NATURE OF ORGANISATION: Partnership type
MANUFACTURING & TRADING: Servo controlled
voltage stabilizer
ADDRESS OF FIRM:

V-GUARD INDUSTRIES LTD Branch Office

BHUBANESWAR

Plot No.45,

Behind Water Tank Sahidnagar,

Bhubaneswar-751007

Ph-0674-3207276,2540230

TYPE OF FIRM: Public private partnership

TYPE OF PRODUCT: MANUFACTURING
SALIENT FEATURES OF OUR PRODUCT:
 Low power consumption during charging state.
 Ripple constant less than 5%.
 Zero fluctuations in current during operation.
 Designed for 100% continuous duty cycle.

We are backed by a strong team of dedicated and qualified

professionals and super-advanced machinery as a part of our
infrastructure. Regular training sessions for our employees and
replacement of old machineries with the new ones help us to attain
optimum results. Together, these form the assets of our company, which
act as a strong backbone for us. These enable us to create a positive impact
on our customers, helping us convert our first time clients into permanent
patrons.

AVAILABE SUBSTITUTES are

 Voltamp Stabilizers
 Permanent Stabilizer
 Eliminates Pulled Or Sagging Stitches
 Excellent Stretch Resistance

Reliable; remains with fabric for continued stabilization through

laundering and wearing

VS 500 - DUAL VOLTAGE STABILIZERS:

 Converts 110/120 V to 220/240 V OR converts 220/240 V to
110/120 V (switch is on back of unit)
 On/Off switch with indicator lamp
 Analog meter on front of unit shows exact output voltage
 Voltage stabilizer good for countries with unstable voltage supply
 2 outlets on front of unit (outlets accept 3 or 2 prong US plugs and 2
prong Euro/Asian plugs)
  Insulated power cord is hard wired with a European Shuck plug also
good for Asian outlets (grounded 3 prong US adapter also available -
Item No. VP 13)
 Heavy-duty metal casing and durable design
 Comes with round and flat pin plugs for use in USA, Canada, and
Mexico
 Fuse protected

VS 350 - VOLTAGE STABILIZERS:

 Converts 110/120 V to 220/240 V OR converts 220/240 V to

110/120 V (switch is on back of unit)
 On/Off switch with indicator lamp
 Analog meter on front of unit shows exact output voltage
 Voltage stabilizer good for countries with unstable voltage supply
 2 outlets on front of unit (outlets accept 3 or 2 prong US plugs and 2
prong Euro/Asian plugs)
 Insulated power cord is hard wired with a European Shucko plug also
good for Asian outlets (grounded 3 prong US adapter also available -
Item No. VP 13)
 Heavy-duty metal casing and durable design
 Comes with round and flat pin plugs for use in USA, Canada, and
Mexico

MARKET MIX OF V-GUARD STABILIZER:

V-GUARD is the largest selling brand of electronic voltage stabilizers
across India. 5 Millions of customers were experienced  the quality of
protection from V-GUARD stabilizers for their home appliances.

Since 1977 onwards, V-GUARD Stabilizer provides reliable and

trusted protection from voltage fluctuations and used to safeguard the
electronic home appliances like Television, DVD, DTH Receiver, Music
system, Home Theater, Water cooler, Refrigerator, Deep Freezer, Air
conditioner and Microwave oven...

V-GUARD Stabilizers are designed with significant features like HMC

Technology, Fail Safe circuit protection, High and Low voltage Protections,
Time Delay Protection and Built In Thermal Overload Protection. Its
coming in unique Jelly Bean Design(R)  with Aesthetic appearance and also
available in various colours to match with interior room decor of homes.

V-GUARD Stabilizers provides Five years warranty to the customers.

They have got more than 125 service centers in major cities and towns to
provide effective after sales service across India.

 Stabilizer for A.C

 TV Stabilizer
 Digital Stabilizer
 AC Stabilizer (ABS Body)
 Refrigerator Stabilizer

PRODUCTION PROGRAMME (1 YEAR):

SI NAME & TOTAL PRICE SALES CAPACITY
NO DESCRIPTIO QUANTITY REVENUEB UTILIZATION
N OF (TOTAL
PRODUCT QTY*PRICE)
1. SERVO 450 units Rs. Rs 69,97,500 73.45%
STABILIZER of 15,550
1KVA rating per
unit

INPUTS:
Machinary/Equipments-
SI DESCRIPTIO NO: OF PRICE TOTAL NAME OF
N N OF MACHINAR VALUE(NO:*PRIC THE
O MACHINARY Y USED E) SUPPLIER
1. Iron sheet 1 60,000 60,000 ESSAR
cutting m/c sheet
(cabinet) cutter m/c
s ltd
2. Welding & 1 95,000 95,000 VIKRANT
Denting m/c heavy
(cabinet) electrical
equipment
s ltd
3. Sprayer m/c 1 75,000 75,000 ALPINE
(cabinet) dying
equipment
s pvt ltd
4. Drilling m/c 2 8,000 16,000 JVL heavy
(2mm) machinerie
(cabinet) s pvt ltd
5. Chipping m/c 2 5,500 11,000 JVL heavy
machinerie
s pvt ltd
6. Transformer 3 23,500 70,500 VIKRANT
coil winding heavy
m/c electrical
equipment
s ltd

7. Driller 2 8,500 18,000 JVL heavy

(0.5mm) machinerie
s pvt ltd

8. Furnace 3 5,250 15,750 NIRGUM

baking oven ovens ltd
9. Soldering iron 10 140 1,400 NATIONAL
(flat bladed) electronics
pvt ltd
10 Soldering iron 6 220 1,320 NATIONAL
. (pointed) electronics
pvt ltd
11 Desoldering 10 75 750 NATIONAL
. pump electronics
pvt ltd
12 Digital 10 1,150 115,00 SCIENTEC
. multimeters H
electronics
PVT ltd
13 Screw driver, 10 800 8,000 TAPARIA
. plair, wire tools &
cutter & equipment
twiser kit s ltd
14 Desoldering 8 900 7,200 JUPITOR
. wicks special
electronic
tools ltd
15 CRO 5 35,100 1,75,500 JUPITOR
. special
electronic
tools ltd
16 Packaging & 3 1,34,00 4,02,000 JVL heavy
. leveling m/c 0 machinerie
s pvt ltd

17 Generator set 1 84,000 84,000 HONDA

. gensets ltd

18 Air 5 24,000 1,20,000 LG air

. conditioners conditioner
s
ltd
19 House on rent 1 11,500 1,38,000 per Manchesw
. per annum ar
month industrial
area
20 Furniture 2 sets 35,000 70,000 RAJDHANI
. furniture
ltd
21 Computer 3 sets 36,000 1,08,000 HP
. systems computers
22 Electrical 8 450 3,600 HAVELL’S
. equipments fans, BAJAJ
lights
TOTAL 14,78,345
Raw Materials-
SI BRIEF DESCRIPTION QTY OF RAW TOTAL SOURCE OF
NO: MATERIALS VALUE OF RAW
RAW MATERIAL
MATERIALS S
1. Transisters(IC- 675 pieces of 92,500 NATIONAL
1N4001,2N2907,7809, each category electronics
SK100,2N2222 & pvt ltd
2N3055)
2. Timers (IC-555) 475 pieces 28,500 JUPITER
electronics
pvt ltd
3. LEDs (DUAL COLOR) 1400 no:s 5,500 NATIONAL
electronics
pvt ltd
4. Display units(IC- 450 pieces each 45,000 JUPITER
L7107 &IC-LT5542) electronics
pvt ltd
5. Resisters(27 2400 pieces of 12,500 SCIENTECH
Ω,470Ω,100K,1.5K,10 each category electrical &
Ω,3k,3.3K,100Ω,4.7KΩ electronics
) ltd
6. Capacitors 1400 pieces of 4750 SCIENTECH
(electrolyte)- each category electrical &
(1000µF,470µF,10µF,2 electronics
.2µF) ltd
7. Capacitors (ceramic 2800 pieces of 4,500 SCIENTECH
disc)-(0.1µF,0.01µF) each category electrical &
electronics
ltd
8. Capacitors 1800 pieces of 20,000 SCIENTECH
(polyester)- each category electrical &
(0.01µF,10µF,100µF,5 electronics
0µF) ltd
9. Mains power 350 pieces 30,000 NATIONAL
switch(MCB type) electronics
pvt ltd
10. i/o fuse (5 amps WITH 400 pieces 2,250 NATIONAL
HOLDER) electronics
pvt ltd
11. Buzzers(5 WATT) 400 pieces 1,900 JUPITER
electronics
pvt ltd.
12. Cord with top (2mt) 350 pieces 7,500 SCIENTECH
electrical &
electronics
ltd.
13. Sockets 40 sets having 6,000 SCIENTECH
10 in each electrical &
electronics
ltd
14. Presets 450 pieces 6,500 JUPITER
electronics
ltd.
16. Relays 375 pairs 18,000 SCIENTECH
electrical &
electronics
ltd.
17. Lamination 2500 kg 20,000 JVC heavy
electrical
equipments
ltd.
18. Copper wire 1100 kg 4,00,000 JVC heavy
electrical
equipments
ltd.
19. Lamination core 130 mts 2,750 JVC heavy
electrical
ltd.
20. Varnish 500 kg 7,500 JVC heavy
electrical ltd
21. Transformer clamps 25,000 E type 15,000 JVC heavy
electrical
equipments
ltd
22. Bobbins 450 pieces 4,500 JVC heavy
electrical
equipments
 ltd
24. IC bases 4,500 pieces 15,000 SCIENTECH
electrical &
electronics
ltd
25. Iron sheet 2,300 square 35,000 SHAKTI
feet iron sheets
26. Color 250 liters 30,000 ASIAN
paints pvt
ltd
27. Screws sets 400 2,500 SHIVA
nuts& bolts
28. Packaging cartoons 2 layer size of 2,500 LEVIANDOR
3000 square feet packaging
materials
Enterprises
29. Soft connecting wires 1000 mts 9,000 JVC heavy
electrical
equipments
ltd
30. Printed Circuit Boards 450 pieces 80,000 EFY printed
circuits pvt
ltd
TOTAL 9,09150

Utilities:
UTILITY UNITS PRICE PER MONTHLY TOTAL
ITEM CONSUME UNIT OF CHARGES(UNITS*P PRICE PER
D PER CONSUMP RICE) YEAR
MONTH TION
1. Electricity 700 3.20 Rs 2,240 26,880
2. Water 10 10.00 Rs 100 1,200
3. Coal 5 15 75 900
4. Oil 75 30 2,250 27,000
TOTAL 55,980
Labour/Human Resources:
SI PARTICULA NO OF WAGES TOTAL REMARK
NO RS EMPLOYE (annual) ANNUAL S
ES WAGES
(NO:*WAGES)
1. Manager 1 2,00,000 2,00,000 10,000
annual
incrmnts

2. Technicians 10 80,000 8,00,000

(skilled)
3. Store keeper 2 36,000 72,000
4. Accountant 1 72,000 72,000
5. Peon 1 30,000 30,000
6. Watchman 1 18,000 18,000
TOTAL 11,92,000

COST OF THE PROJECT:

SI NO COST OF THE ITEM TOTAL ANNUAL COST
1. FIXED COMPONENT 32,00,000
COST
2. VARIABLE RAW 9,09150
MATERIAL COST
ITEMS
3. ANNUAL WAGES COST 11,92,000
ITEMS
4. ANNUAL UTILITIES 55,980
COST ITEMS
5. ANNUAL 75,000
ADVERTISEMENT
∴ TOTAL PROJECT’S ANNUAL COST= Rs 54, 32,130/-
SI NO PARTICULARS AMOUNT
1. Fixed Capital 24,43,475
2. Working capital 22,95,250
3. Preliminary cost of 1,75,000
investigation

SL NO PARTICULARS AMOUNT REMARK

1. Long term 40,00,000 SMALL
finance for INDUSTRIES
fixed capital DEVELOPMENT
BANK OF INDIA
with 9.5% rate of
interest
2. Own 10,00,000 each Total=20,00,000
contribution partner
3. Short term 15,00,000 STATE BANK OF
finance for INDIA finance
working capital with 12.5% rate
of interest
MEANS OF SOURCES:
SL NO PARTICULARS AMOUNT
1. Sales Revenue Rs 69,97,500
2. Manufacturing expenses(2.2 21,57,130
2.3+2.4)
3. Selling & Distribution expenses 85,000
4. Administrative expenses 1,25,000
5. Interest 6,05,000
@ 9.5% on long term finance &
@ 12.5% on Short term finance
6. Depreciation @ 20% on machine 2,25,000
&@ 15% on furniture
7. Gross profit(1-(2+3+4+5+6))
(69,97,500-
3197130)=380037
0
8. Income tax@ 30% of Gross 11,40,111
profit
9. Net profit(7-8) 26,60,259

1. PROFIT RATIO:

N . P×100
P. R=
S. R

=26,60,259*100/69,97,500

=38.01%

2. BREAK EVEN POINT:

 FC ×100
BEP=
FC + N . P
=[(3200000)/(3200000+2660259)]*100=54.60%

3. RATE OF RETURN:

N . P×100
RR=
FC+WC
=(2660259)*100/(3200000+22,95,250)

=48.41%

CASH INFLOW:
SL NO: TYPE AMOUNT
1. Net Profit 26,60,259
2. Own investment 20,00,000

3. Depreciation 2,25,000
4. Long Term Loan 40,00,000

5. Short Term Loan 15,00,000

CASHOUTFLOW:

TYPE AMOUNT

SL NO:
1. Preliminary & 2,50,000
preoperative
expenses
2. Interest 6,05,000

3. Income Tax 11,40,111

SL NO NAME OF COMPANY NAME OF MD ADDRESS

1. Shakti Stabilizers & Mr. Kumar Patel B/13,MANCHESWAR

SERVO PVT LTD INDUSTRIAL
ESTATE ,
BHUBANESWAR-
751024
PH-0674-2741298
2. Voltamp stabilizers Mr. Devendra A-18, JANAPATH,
PVT LTD Tiwari BAPUJINAGAR,
BHUBANESWAR-
751009
PH-0674-2530744
3. SARASWATI Mr. Anirudh HYTECH PVT LTD
stabilizers PVT LTD Mishra BHUBANESWAR-
751010
PH-0674-2585892
FAX-6532897

SL No. Name Of The Name Of Address

Bank Manager
Plot No. 11/7C
1. SIDBI, Mr. Animesh Nayapally
Bhubaneswar. Mishra Bhubaneswar-
751025

State Bank Of Mr. Keshab SBI, idco tower

2. India, Kumar Sarangi branch,unit-9,
Bhubaneswar Bhubaneswar
CONCLUSION:
V-GUARD Plans to setup manufacturing bases outside Orissa in
Middle East and other parts of the country. We are developing various
products with new added features to suit customers requirement rt and
also looking for. partners to setup units in other parts of India to take
advantage of labour & infrastructure [Link] Company has envisaged on
this expansion program taking into consideration the potential of the
Indian market and the recent liberalization of the Government policies for
Import & [Link] Company has adequate financial capabilities to
expand existing capacity in any department which will match your
expectations. Similarly, the existing network of authorized Sales and
Service Agents in India can do enough justice for any number of additional
machinery / equipment / other products for Selling and Servicing in the
respective territories