Business Plan: The Perfume Industry
(A). Overview
The proposed business plan is about setting up a perfume industry with a nominal cost. The perfume is chose as a main product because of the following reasons The Perfume Industry World Wide Generates Well Over $18 Billion Annually The set up cost is low, so you don't need a lot of money to get started. It's a flexible business to operate and you can decide how little or how much time and work we want to put into it. The product we are offering has a ready market and appeals to both men and women, so we can start making money right away. It offers a fantastic opportunity for us to earn a fantastic income doing something that is fun.
(B) Business Objective
The main business objective is obviously profit making. This is the industry where there no bi products are generated which causes harm to the environment. We will not produce any aerosol spray which uses Chlorofluorocarbons (CFC) that causes ozone layer depletion. So there is an indirect social motive.
Business Activity
The business activities will include manufacturing and trading. The product manufactured will be sold from companys outlet and various different shops and marketing channels.
Ownership
The proposed business would be a partnership business. The partners would be 1. 2. 3. 4. Ms.Pranjal Pachori Ms.Priya Jain Ms.Nikita Agrawal Mr.Piyush Rathor
They will equally share the profit and loss, so would be the investment share i.e. 25% each.
(C) Detailed Business Activity
Trading Activities The main activity of the business would be manufacturing of perfumes in various popular fragrances. The main product would be the perfumes for ladies and gents in various fragrances. This would be selected very carefully and popular perfumes would be made first.
The product would be sold across the country vide various outlets. The initial outlets would be the local shops and vendors in the region as a whole seller. An exclusive outlet would be opened for resell of the products too. Once grown, the company would start selling the product in large geographic locations. The product would be launched in nice crafty glass bottles with nice packing to attract the customer by look first. The raw materials for the industry are available locally in plenty. Manufacturing Activities There will not be any bi products of the whole manufacturing process. The process will be mixed i.e. partially automated and partially manually done by labors. Plant / Machinery Required - Followings are the plant/machinery required Sr. No. 1 Machinery / Plant Perfume Filling Machine Supplier
Blenzor (India) 1-A, First Floor, Above Baywatch 188 / H, Sharda Mansion, Near Chitra Cinema, Dr. Babasaheb Ambedkar Road, Dadar (East) Mumbai. Phone : 91-022-24171515 Mobile Phone: 9821972254 Fax: 91-022-24171515
Installed Capacity 2ml-100ml Filling in bottles 500-1000 bottles per hour
Perfume Bottle Sealer M/c
Amson Engineering 44/359, Motilal Nagar No- 1, Road No- 10, Near M.N. English High School Opp. B E S T Colony Goregaon, Mumbai. Phone : 91-91-98925-89976
500-1000 Bottles per Day
The manufactures of these machines are Indian only and they are located in Mumbai, so repair and maintenance wont be a problem also these are not very high tech machines, so the local mechanics can handle these machines. List of Raw Materials Required Different essences are required to manufacture perfumes. The list of Raw Material is as under Sr. No 1 Raw Material Ethyl Alcohol (Base) Supplier Indian Overseas Corporation 29, Abhechand Gandhi Marg, Masjid Bunder West,, Mumbai, Maharashtra, India 400003. Phone : 91-22-6633-5111 Shiva Exports India 35 Farsh Road, Kannauj, Uttar Pradesh - 209725 Phone - 91-9838-332079, Mobile 919838332079 CG Overseas India Plot no-98, 99, sector-iidc, haridwar, uttrakhand, India Telephone: 91-1334-293264
Essences Oil (Fragrances)
Crimp Pumps
Glass Bottles
Kingdom Arts & Craft Co. Ltd. No.11,Jingsan Rd, Beiyuan Street,
Yiwu Zhejiang China. TEL:86-579-85421229 FAX:86-57985420152 E-mail:[email protected]
Other than above mentioned raw materials, un-skilled or semi skilled man power would be required. Electricity, water and local transport is easily available. There is no effluent generated in perfume manufacturing. No bi product is produced in the process also.
(D) Market Scenario
Perfumes have a big market and appeals to both men and women. The operation will be started with Indore city first covering the nearby Ujjain, Bhopal. Gradually, the geographically area will be enhanced. There is a huge demand in the market for perfumes. May it be men or women, all prefer putting perfumes. It was a myth that people wear fragrances only on occasion, but now its necessity. The perfumes have replaced talkcum powder, which was the main source of fragrance. There is lot of perfumes manufactures in the country, but most of manufacturer produces aerosol spray (Deodorants in aluminum cans) which uses Chlorofluorocarbons (CFC), so the competition is not fearers. However, as a business, there would always be a competition and we will compete those with our product quality and prices. In our customers, there wont be any classification, as perfumes are used by men, women and of any age group now. The customer will get the value for money as they will find good products at good price. Even, we can customize the fragrance as per individual need in later stage. There is govt. subsidy available for women entrepreneurs for small scale industries. Various nationalized bank offers bank loans to SSI. There is lot of venture capitalists who would be ready to finance the project. There is a capital/power subsidy available in case of Small Industries, if registered as SSI with Industry Department of Govt. of MP.
(E) Initial Investment & Source of Investment Sr. No Investment
1 2 3 4 5 Rent for Office / Production Room @20,000/- pm for 12 month Plant & Machinery Furniture & Fixtures Computer & Printer Working Capital for 12 months @ 25,000/Total Partners Capital @ 60,000/- each Loan from bank Total 2,40,000/50,000/1,00,000/35,000/3,00,000/7,25,000/2,40,000/4,85,000/7,25,000/-
Particulars
Amount (Approx)
Source of Fund
1 2
(F) Income & Expenditure Plan
Estimated Year -1 Year - 2 Year -3 Year - 4
Income
Sales (estimated Bottles) - 10000 Other Receipt
Total Income(A) Expenditure
Cost of goods Sold Direct Expenses Admin Expenses Marketing Expenses Operating Profit Interest Cost Depreciation
Total Expenditure(B) Profit Before Tax (C)=(A-B) Tax (D) Profit After Tax (CD) Return On Investment (F) Regulatory Permission:
Followings are the regulatory permissions are required for establishing our business Sr. No Permission Required Purpose 1 DIC Part I registration For getting registered as small industry with industry department of MP Govt. There is another Part II registration, which is done once the production is started. Thats also required to claim subsidies. 2 TIN Registration This registration is required with State Sales Tax department and Commercial Tax Department for all sales and purchase transactions. A quarterly report has to be submitted to department for sales, purchase and VAT details, if applicable. 3 PAN / TAN This registration is required with Income Tax Department. 4 Gumashta / Nagar Nigam Establishment license from local authority License 5 ESIC/PF Registration Its for the welfare of staff and their
benefits done with Labor department. 6 NOC from Pollution Board Permission required by Mp Pollution Board for compliance with pollution policy of state govt. Note: Company Name is registered only with Registrar of Company (ROC) if its a Pvt. Ltd. or Ltd. company. Our firm is a private limited firm, so no ROC registration is required. No excise duty is applicable on the product, so no excise registration is required. When the product will be exported, the IEC (Export Import Code) will be obtained by DGFT
(G) Business Risk and Threat Risk In any business there may be some human risk factors and some technical risk factors, but in our case both the risk are not involved. We dont need skilled labors nor do we need lot of man power, so there is no risk of strike, labor union involvement etc. There is no technical risk either, as the machines are pretty simple and not much electricity is required. No rocket science is needed to handle these machines. Local technicians can manage these troubles shooting. At present, there is no such adverse govt. policy which can cause a risk to business, as the industry is eco friendly and a cottage industry more or less. There may be some risk on imposing ban on Chlorofluorocarbons (CFC)
products by Govt., but we will not manufacture such products at all. There may be some change of duty/levies on raw materials, yet that very common risk of any business and can be handled by cost cutting measures.
Threat
The Competition In fact, competition is a major threat to any business so it's in our case. But honest analysis and planning ahead can be useful tool to handle the threat. Rotation of Fund Another major problem of any business is the block of fund with vendors. So its major control of any business to keep check on timely payment.
