PROJECT REPORT

ON
PROPOSED INDUSTRIAL ESTABLISHMENT PLAN

OF

M/S ASIAN AGENCIES

FOR ALLOTMENT PLOT IN INDUSTRIAL PLOT ALLOTMENT UNDER INDUSTRIAL PLOT SCHEME-2023

AT

(SECTOR-27, GIDA, GORAKHPUR-273209, UTTAR PRADESH, INDIA)

FOR MANUFACTURING OF PACKED DRINKING WATER

FROM:

VIJAY PAREEK & CO.

(Chartered Accountants)

HIG-14A, Near Champa Devi Park, Taramandal, Gorakhpur -273001 (U.P.)

Contacts: 0551-3589627, +91-9621193185,+91-7380831444-
Mail at: [email protected]
For more details Visit : www.vijaypareeknco.com

Note : For Specific Use Only

 1. CONCERN /PERSONAL DETAILS:

Concern (Unit) Name M/S ASIAN AGENCIES

Address (Proposed Unit Address) SECTOR-27, Gida, Gorakhpur-273209, Uttar Pradesh, India
Present Address of Unit H.No. 318, Basantpur, Gorakhpur, Uttar Pradesh, 273005
Statue Proprietorship Firm (Individual)
Corporate Identification (GSTIN) 09AAUPI9183Q1ZE
Proprietor’s/Owner Details Name:Mrs. Saleha Iqbal
Father Name: Mr. Jameel Ahmad
PAN: AAUPI9183Q
AdharNo : 5622-7823-7237
Date of Birth: 02/07/1985
Mobile No: +91-9807772389
Email ID: [email protected]
Resident Address:
H.No. 318, Basantpur, Gorakhpur, Uttar Pradesh, 273005
Business Experience 20 Years
Proposed Business Activity Manufacturing of Packed Drinking Water
Unit Area 740 Sq Mtr. (550 Covered and 190 Uncovered)
Cost of Project and Details Land Cost :- Appx Rs. 44.40 Lacs
Construction Cost: Appx Rs. 60.00 Lacs
Machinery & Assets Cost: Appx Rs. 151.04 Lacs
Working Capital Requirements: Appx Rs. 41.06 Lacs
2. INTRODUCTION (PROJECT VIABILITY & FISIBILITY):

Rampant water, land and air pollution has taken its negative toll on the earth. Dumping
untreated waste directly into the waterways has reduced the quality of water. It is definitely
unsafe to consume water from lakes and ponds. Untreated water is not safe for
consumption. It contains germs, dust and pollutants which plays havoc to our health. Thus, it
is mandatory to drink treated and filtered water, obtained from clean source. It is this
awareness among the growing population about the importance of safe drinking water for
maintaining good health, along with a sharp rise in per capita income is creating a demand
for bottled water in India. Bottled water is extremely convenient to carry especially for
employees, traveler, and students. It keeps them hydrated irrespective of their proximity to
the water supply. With the consumption of water increases due to the growing population, it
is quite imperative that the world would require a greater number of water purification
units. This is where the bottled water business players are benefitting from. There are
around 5,735 licensed bottlers for packaged drinking water across India, alongside n
number of unbranded ones. However, penetration of packaged drinking water is low in rural
India. Bottled water business comprises purifying the water, bottling them for consumption
and selling them. This is evergreen business and there is place for everyone who wants to
step into this opportunity. Opening a Packaged Drinking Water plant requires quite a
substantial investment and cannot be started with low investment.

3. KEYS TO SUCCESS/FEASIBILITY
In India, the demand for bottled water is majorly due to unavailability of safe drinking water
because of enormous increase in the population, inflow of tourists, poor quality of tap water,
ease of availability of bottled water and rise of health awareness. As the government has
failed to provide clean drinking water at all places, private players have not just filled the
gap but also created a robust business. The best mineral water companies in India are
focusing on augmenting their market shares by implementing effective marketing strategies
and attractive packaging. Accordingly, the market is expected to reach US$ 65.50 billion by
the end of 2024. The major strength of India as a market is of course its population which is
17.6% of the global population. The market for the supply of Packaged Drinking Water is
wide. In all the cities and towns of India, the product is widely accepted in offices,
restaurants, railway stations, bus stands and hospitals. Bottled water is also available in all
“A”, “B” and “C” class Retail outlets, Bakeries and Sweet shops, Pharmacies, Petrol Pumps
and through Street Hawkers. Many households have resorted to purchasing purified water
in Jars.

4. MARKET:

Packaged drinking water industry has grown many folds in all the developed economics of
the world. The product is targeted especially at touring and traveling market segments. The
market is also growing due to contamination/shortage of water supply in the cities.
 At present the Indian market is dominated by processed water. The demand for
consumption of mineral water in India has been estimated at approx. 500 million liters of
pure water bottles and the market is expected to grow at a rate of 25- 35% per annum.

The domestic market of mineral water is mainly derived from the tourism sector. Further,
the demand may also be from institutional sector as well as from higher income bracket
group in urban areas. In view of the large scope of packaged drinking water, the project will
has tremendous scope for its development.

Market segmentation of bottled water in India:

Segment Share (%)

North 25
East 10
West 40
South 25
Source: Indiastar.com

With a rise in health awareness, increase in tourism and the easy availability of bottled
water the per capita consumption of bottled water in India is on the increase.

This market is expected to grow at a CAGR of 25 percent, to reach $ 60.50 billion in 2023.
The bottled water industry in India witnessed a boom in the late 1990s soon after Bisleri
launched its packaged drinking water in the country. This significant growth was fueled by a
surge in advertising by the industry players that "bottled water was pure and healthy".
Today, with a rise in health awareness, poor quality of tap water, and the ease of availability
of bottled water, the per capita consumption of bottled water in India is on the increase.
India's packaged bottled water industry is currently dominated by the top five players,
including PARLE (BISLERI, BAILLERY), PEPSICO (AQUAFINA), COCA COLA (KINLEY),
DHARIWAL (OXYRICH) AND NOURISH CO. (HIMALYAN). Apart from these other leading
bottled water brands in India are: KINGFISHER, TATA WATER PLUS, QUA, BLUEFIN, OVIVO,
etc. These companies struggle to penetrate the small non-tier cities and towns due to poor
infrastructure, thus providing an opportunity for small regional players to build a presence
in regional markets. Even as the industry is on a growth path, smaller local players and the
unorganized sector are eating into the market of the established players, often by imitating
their trademarks. Maximum sale of bottled water comes from the retail sector; but this is
changing with demand coming from social functions and corporate events, especially for
bulk water or bottled water cups. With the aim to capture all the segments of society,
players have started foraying into packaged water pouches at low price points, but this is
still in the experimental stage.

5. LAND , BUILDING, MACHINERIES (LAND UTILIZATION/LAYOUT PLAN):

Full-scale Semi Automated Packed Drinking Mineral water manufacturing does not requires
setting up of a large-scale factory with a complex production process. However, it is possible
for small-scale entrepreneurs to set up Packed Drinking Mineral water Manufacturing
assembly units as a small- or medium-scale manufacturing operation. In our Unit we are
considering it at small-scale enterprises and Unit details as follows

• LAND :
The location of the proposed business with its production unit is at SECTOR-27 of
Gorakhpur Industrial Development Authority (GIDA). Total Area Approx. 740 Sq Mtr
@ 6000, within maximum initial payment @ 10%
Note: The Above Defined plot is not a final plot. Final Plot shall be as provided by
GIDA

• BUILDING (LAYOUT PALAN):

Covered or built-up area for the plant and Machinery including, Storages, Raw
material store, finished goods store, Processing section, Machinery spares store
room, Panel board room, For other construction for office, Toilets, Security office, Tin
Shedding in front of Procession and storage, Miscellaneous space etc. Double Story
Building. Housing area for Staff shall be within the limits as defined by the Authority
from time to time. Approx. Covered area for above construction shall be Appx 550 Sq
Mtr. And uncovered area Appx 190 Sq Mtrs. for the purpose of loading, unloading,
raw or other material, and for all other works ancillary & relevant to the proposed
production line.

• MACHINE:
Packed Drinking Mineral water manufacturing is not a complex process. Machines
need to be selected on the basis of the specific Water Bottle size and Production
Quantity. However, major machines include:

Required Machinery for Proposed Curtain Packed Drinking water Unit as

under:

Machine Name Qty Rate Amount

Ro Plant 5000 Lts 1 10,00,000.00 10,00,000.00
Chlorination Tanks Made Of Stanless 1 3,00,000.00 3,00,000.00
Steel 5000 Lts
Automatic Blowing Machine 1 32,00,000.00 32,00,000.00
Automatic Rinsing, Filling And Capping 1 25,00,000.00 25,00,000.00
Machine
Automatic Shrink Wrapping Machine 1 10,00,000.00 10,00,000.00
Round Leveler 1 15,00,000.00 15,00,000.00
Square Leleler 1 5,00,000.00 5,00,000.00
Domino Printer 1 3,00,000.00 3,00,000.00
Conveyar Belt 1 3,00,000.00 3,00,000.00
Dye Mouled 1 3,00,000.00 3,00,000.00
Ozone Generator 1 2,00,000.00 2,00,000.00
Raw And Purified Water Collection - - 3,00,000.00
Tanks With Motor & Accessories
Misc Tools Equipments, Pipeline Etc - - 3,00,000.00
Laboratory Testing And Quality Control - - 5,00,000.00
Electrification And Installation Charges - - 8,54,000.00
@7% Of Plant & Machinery
Total Machinery 1,30,54,000.00
 Others Relevant Assets
Furniture & Others Qty Rate Amount
Cost Of Furniture, Furnishing & Office -- -- 2,50,000.00
Accessories
Cost Of Deep Bore Tubewell For Water -- -- 1,50,000.00
Reserve
Electric Connection & Security -- -- 10,00,000.00
Electric Fittings -- -- 2,00,000.00
Water Harvest Plant -- -- 2,00,000.00
Security System -- -- 50,000.00
Preliminary And Pre-Operative Expenses -- --
Including Project Preparation, Technical
Consultancy, Travelling Expenses, Interest 2,00,000.00
During Construction Period, Start-Up
Expenses Etc.
Total 20,50,000.00

• INPLEMENTATION SHEDULE:

The machines are available from supplier within one month’s period. The project can be
implemented within six-month period. Subject to construction.

Activity Period Term

Construction of Building, Market tie-up 6 Month
Procurement of machinery and equipment 2 Weeks
Plant erection and Electrification 2 Weeks
Arrangement of raw material including Packaging Material etc. 1 Month
Recruitment of manpower 1 Month
Arrangement of finance (Term loan and working capital) 1 Month
Selection of market channel 1 Month
Miscellaneous works like power/water connection etc. 1 Month

Note: Considering that some of the above activities may be overlapping, the project
implementation will take a total period of 8-12 months approximately for starting the
production.

6. TOTAL CAPITAL COST OF PROJECT:

Total Cost of Project includes capital cost amount required for whole production unit
which are as follows:

Sr. No Description Amount

1. Land Cost 740 Sq Mtr @ Rs. 6000 44,40,000.00
2. Building Construction Cost 60,00,000.00
3. Machinery & Other Assets 1,51,04,000.00
Total 2,55,44,000.00
7. MATERIAL, PPROCESS, FINSHED GOODS:

• RAW MATERIALS:
Adequate and proper quality water resources like well, bore, river, etc. and some
additives. The main raw material is water which is purified and made into finished
product.

• PRODUCTION PROCESS:
The water is processed with multi stage purification processes such as – sand
filter, activated carbon filter, ultraviolet disinfection, ultra filtration, Reverse
Osmosis and Ozonization.

❖ Sand filter: At first stage of water purifying it eliminates load of total

suspended solids in the raw water.

❖ Activated carbon filter: This filter removes most of the organic contamination
and pesticide residuals from the water. It also controls taste and odor of water.

❖ Ultraviolet disinfection (UV): Water is exposed to UV light of wavelength 245

nanometers (nm). A dosage of 16000 microwatt/sq.cm at 40˚ C for effective
disinfection.

❖ Ultra filtration: A low pressure membrane process that removes dissolved

organic macro molecules, viruses, pyrogen enzymes etc.

❖ Reverse Osmosis: This process eliminates dissolved impurities like unwanted

salts and retain minerals which are essential to human body.

❖ Ozonization: This is the strongest oxidizer and disinfection agent which acts
on broad spectrum of microbiological organisms.

❖ Filtration: This pumps water through a microscopic filter that is rated for a
certain size organism. The standard size rating is the micron.

❖ Bottling: The is the last and Final stage of this process is where Purified water
is Packed in to Bottle in Different Capacity of Bottles and Packets.

• FINISHED GOODS:
In the proposed manufacturing unit finished goods is Packed Drinking. In the
proposed manufacturing unit finished goods include various Size, of Bottles and
Packets.

8. WORKING CAPITAL REQUIRNMENTS:

At the One-month cycle, the project requires working capital for raw material of ₹ 33.35
lacs as detailed below:
 Item description Unit Qty Rate Amount
*PET/PVC bottle including cap labels etc. Tone 70.875 40000 28,35,000.00
Chemicals and Reagents etc. (L.S.) -- -- -- 1,00,000.00
Corrugated boxes, strips tap etc. -- -- -- 4,00,000.00
Total 33,35,000.00
*PET/PVC bottle including cap labels etc.
Description Production Per PET PET Granules Requires Per
Month Granules Month
Requires
Per unit
500ml PET Bottle 5,25,000 35 Gms 18.375 Tone
(Pcs)
1000ml PET Bottle 5,25,000 60 Gms 31.50 Tone
(Pcs)
28 mm PP Caps (Pcs) 10,50,000 20 Gms 21.00 Tone
Total 70.875 Tones

9. MANPOER/STAFFINGS:
The proposed manufacturing unit needs to recruit 41 people in the various capacities for
specific roles. The unit will further train and orient the recruits in their areas of work for
the smooth operations.

Designation Number Salary (Pm) Amount

Manager 1 20,000.00 20,000.00
Supervisor 3 15,000.00 45,000.00
Machine Operator 5 15,000.00 75,000.00
Skilled Labor 8 12,000.00 96,000.00
Unskilled 15 10,000.00 1,50,000.00
Marketing and Sales person: 3 12,000.00 36,000.00
Guard Cum Storekeeper 2 8,000.00 16,000.00
Accountant: 1 8,000.00 8,000.00
Lab Assistant 1 12,000.00 12,000.00
Production Manager 1 15,000.00 15,000.00
Clerk-cum Typist 1 8,000.00 8,000.00
Total 41 4,81,000.00

10. UTILITIES& OTHER CONTIGENT EXPENSES PER MONTH:

Utilities include the monthly recurring cost directly related to production process, which
are as follows:

Sr. No Description Amount

1. Power Requirements 1,50,000.00
2. Water Requirements 10,000.00
3. Transportation & Freights 80,000.00
4. Other Miscellaneous Expenses 50,000.00
Total 2,90,000.00
11. TOTAL WORKING CAPITAL REQUIRNMENTS: Rs. 41,06,000/- Per Month
Total of Pint 8+9+10

12. TOTAL COST OF PROJECT:

Total cost of project including Capital cost, working capital requirements and
means of finance thereof.

Cost of Unit
Rs in INR
Description Amount
Land Cost 44,40,000.00
Capital Cost (Other than Land) 2,11,04,000.00
Working Capital Requirements 41,06,000.00
Total Cost of Unit & Working Capital 2,96,50,000.00

Means of Finance
Description Amount
Down Payments (Part of Own Contributions) Earnest Money 4,44,000.00
Bank Financial Assistant (Term Loan) 75% of Capital Cost 1,58,28,000.00
Bank Financial Assistant (Cash credit) 75% of Requirements 30,79,500.00
Own Contribution (Including Down Payment to GIDA and 1,02,98,500.00
Minimum Margin contribution required by bank in Capital and
Working Capital Requirements and outstanding amount of
GIDA after Down Payments)
Total Means of Finance 2,96,50,000.00

Note: The total projected cost of the business consists of startup cost and working
capital. For Machinery, Building, and other Installation a term Loan and Own
Contribution is Proposed. For the Purpose of Working Capital requirement Cash
Credit would be proposed along with additional contribution from proprietor if
required so. Working Capital Requirements includes cost of Inventory purchases,
Power, fuel, other Utilities, freight, Delivery expenses, Payroll, Taxes, licenses, and
Administrative Cost.

15. ADMINISTRATION COST:

Administration cost includes expenses which are not directly not related to
production but axially to production of unit which are as follows:

Description Amount (Annual)

Bank interest on term Loan (Taken Approx. 11.50 %) of 18,20,220.00
Term Loan
Bank interest on Cash Credit (Taken Approx. 11.50 %) of 3,54,140.00
Cash Credit
13. Depreciation Building @ 10% 6,00,000.00
14. Depreciation Plant & Machinery @ 15% 22,65,600.00
 All other Administration cost (it includes GIDA Rentals and 10,85,000.00
all cost which is not mentioned specially)
Total 61,24,960.00

Depreciation on Some assess are Less or more as Taken @15% But for the purpose
of Simplicity taken as 15% on All Assets

16. ANNUAL TUROVER/REVENUE FROM OPERATION:

In the proposed production unit is considered mainly for the production of 1000ml
and 500ml 250ml and 100ml water Bottle and Packages. However, this is not a
final list of production items. Expected annual production as follows.

Products Unit Qty Rate Value ( Rs.)

Water Bottle 1000ml -- 52,50,000 8 4,20,00,000.00
Water Bottle 500ml -- 52,50,000 4 2,10,00,000.00
Total Turnover -- 1,05,00,000 6,30,00,000.00

17. PROFITABILITY:
Profitability of the proposed unit is as follows.
Particulars Amount
Gross Profit (Sales – Working Capital Cost x 12 Months) 1,37,28,000.00
(Rs. 6,30,00,000.00-Rs. 41,06,000.00x12)
Net Profit Before Tax (Gross Profit – Administration Cost) 76,03,040.00
(Rs. 1,37,28,000.00-Rs. 61,24,960.00)
Net profit After Tax =Net Profit before Tax – 30% 53,22,128.00
(R. 76,03,040.00-Rs. 22,80,912.00)

18. RATIO:
Various Relevant ratio of proposed Manufacturing unit is as follows.
GP Ratio= Gross Profit/Sales x100=21.79%
NP Ratio =Net Profit /Sales x100= 12.07%
Return of Investments: Net Profit/Own Investments = 53,22,128.00/1,07,42,500=
0.50 Times

19. BREAK- EVEN ANALYSIS:

FIXED COST (Per Annum)

Description Amount
Total Depreciation (Building & P& M and Furniture) 28,65,600.00
Interest on Term Loan 18,20,220.00
Salary (40% of Total Salary) 1,92,400.00
Utilities (40 % of Total Utilities) 4,34,000.00
Total 53,12,220.00
 Break Even Point:

Fixed Cost 53,12,220.00

----------------------------- X100 --------------------------------------X 100 = 41.13%
Fixed Cost + Net Profit 53,12,220.00+76,03,040.00

20. POWER, WATER, & UTILITIES REQUIRNEMNTS:

❖ Power: The power requirement is 90 KW.

❖ Manpower: Labor requirement stated above.
❖ Water: Water is required for human consumption and utilities work
The proposed location is under the Estate of GIDA Gorakhpur, Uttar Pradesh,
where industrial electricity is available mostly.

21. WATER REQUIRMENTS:

The Proposed unit required huge amount of water for which Adequate and proper
quality water resources like well, bore, shall be arranged. The proposed unit
required water for plant trees and other beautiful greenery in front of factory
premises as required by the law and other rules and regulation provided by the
authority for the same. Unit also had requirement of water connection inside in
order to supply for labors and other personnel working in the proposed unit along
with RO system..

22. POLLUTION AND ENVIROMENTL IMPACTS:

The process of manufacture does not generate pollution. However, entrepreneurs
are to contact State Pollution Control Board for necessary guidance. Maximum
care should be taken while selecting the machinery and other electrical
equipment’s so as to ensure minimum power consumption. Propose
Manufacturing plan total electricity consumption plant not producing any type of
Bye Products, Gases, Liquids or other Form which can harm, damage the
environment in any manner.

23. REGISTRATION REQUIRES:

The entrepreneur needs to obtain following registrations and licenses from
government authorities:
❖ Approval From GIDA
❖ Udyog Aadhaar MSME registration
❖ GST Registration
❖ NOC from Pollution Control Board(If Required So by Authority)
❖ Bureau of Energy Efficiency certification/ ISO/ Quality Control

However, specific license and registration requirements will depend on the

manufacturing process and the type of Manufacturing of Curtain that is being
produced same shall be taken from time to time if so being applicable.
24. CONCLUSION:

Packed Drinking water Manufacturing Unit is a commercial production unit to be

established at Industrial Estate under Industrial Estate of GIDA Gorakhpur, Uttar
Pradesh which requires a financial investment worth of Rs. 296.50 Lacs.

Propose Manufacturing plan total electricity consumption plant not producing any
type of Bye Products, Gases, Liquids or other Form which can harm, damage the
environment in any manner except a DG set which would be latest sound proof
and less carbon emission machine if required so in future.

As a forward-looking concern unit is a socially responsible firm, we would bring

about benefits to the local community and our customers. We will create
employment to around 41 people and contribute to the nation’s economy in the
form of taxes.

The proposed unit will give satisfaction salary and allowances with commission to
the employees as they are bedrock of our business and our success depends on the
level of satisfaction, they derive working in the business house.

The business house will accord top priority to our customers and deliver high
quality and timely services, and products. Through an expansive marketing
strategy unit will create a unique brand for itself. The proposed unit would earn
profit of 12.07% on an average. It is assured and guaranteed that the proposed
unit would make more profit once it starts production and marketing than as it is
aforementioned. The proposed business is feasible due to its strategic investment
and operational plans.