INDEX

SR.
NO.

PARTICULAR

1.

INTRODUCTION

2.

PROJECT AT GLANCE

3.

GENERAL INFORMATION

5
6-10

OWNERS/PROMOTERS BIO DATA

JUSTIFICATION OF LOCATION
MARKET POTENTIAL
4.

PRODUCTION INFORMATION
RAW MATERIALS
MANUFACTURING PROCESS

5.

6.

PAGE
NO.
3

7
8
10

11-16
12
14

FINANCIAL INFORMATION

17-28

FINANCIAL DETAIL OF A PROJECT

18

FINANCIAL PROVISION

21

SALES, SALARY & WAGES

22

PROFIT ANALYSIS

25

BALANCE SHEET

26

BREAK EVEN ANALYSIS

27

RATIO ANALYSIS

28

PERSONNEL INFORMATION

39-37

INTRODUCTION

30

RECRUITMENT AND SELECTION

TRAINING &DEVELOPMENT
PROMOTION & TRANSFER POLICY
PERFORMANCE APPRAISAL
EMPLOYEE WELFARE & BENEFIT

31
33
34
36
37

7.

MARKETING INFORMATION

48-45

INERODUCTION
MARKETING MIX

39
40

MARKET SEGMENTATION

41
42

CONSUMER BEHAVIOR
ADVERTISEMENT & SALES PROMOTION
DISTRIBUTION & CHANNEL

43
45

8.

PRESENT POSITION & FUTURE SCOPE

46

9.

CONCLUSION

47

10.

APPENDIX

48

11.

BIBLIOGRAPHY

50

INTRODUCTION

As a part of practical training, I have selected to prepare a product project report on Air
Coolers. There are mainly two types of coolers;

1. Room Coolers.
2. Temperature Coolers.

Evaporative type Air Coolers are used in peak summer season for cooling of rooms,
offices, hotels etc. In general Air Coolers are used for cooling similar areas and desert coolers are
used for larger area. Air Coolers basically consist of body, fan, water pump and control switch
etc.

An electric fan generally of exhaust fan type is mounted inside a louvered housing and
three vertical sides of the housing are fitted with filtered pads which are kept wet with help of
water pump. Rotation of fan mounted inside the body draws air from all the three sides through
wet pads. Thus, air gets cooled by evaporation of water and which is blown into the room.

But this benefits are not enough reasons to pursue an entire project in order to commence
such a business, a business person has to check the financial viability of the project also certain
questions to be answered like,

How much capital is more required?

From where this capital will be procured?

What will be the cost of production?

What will break even point be reached?

What would be the profits and return on investments?

And the list is endless ..!!!!

A genuine attempt has been made to answer all these questions with almost justification
possible in the following pages.

PROJECT AT GLANCE

NAME OF THE UNIT

ANGEL AIR COOLERS

ADDERSS FOR

ANGEL AIR COOLERS

SHED NO.3425,
BHAGYODAY ROAD,
G.I.D.C PHASE 3 DARED,
JAMNAGAR-361004, INDIA

SIZE OF UNIT

SMALL SCALE INDUSTRY

NAME OF PARTENERS

NAME OF THE PRODUCT :

AIR COOLERS

SSI REGISTRATION NO

APPLIED FOR

LOCATION OF THE UNIT :

ANGEL AIR COOLERS

SHED NO.3425,
BHAGYODAY ROAD,
G.I.D.C PHASE 3 DARED,
JAMNAGAR-361004, INDIA

PROMOTERS BIO DATA.

NAME

ADDRESS

SHREEJINI VAS
3, HOSPITAL ROAD
PATEL COLONY
JAMNAGAR 361004

AGE

20 YEARS

QUALIFICATION

B.B.A

EXPERIENCE

FRESHER

PROPOSED LOCATION JUSTIFICATION

Factory Location is the decision regarding geographical situation of the plant. This
decision is a very crucial one because it is not easily alterable and involves a considerably huge
amount of investment. The location of the factory plays a very vital role in success of failure of
the business. But this decision is affected by many factors, which are to be kept in mind while
selecting the location.

Registered Office:
ANGEL AIR COOLERS
SHED NO.3425,
BHAGYODAY ROAD,
G.I.D.C PHASE 3 DARED,
JAMNAGAR-361004, INDIA

Factory Office:
ANGEL AIR COOLERS
SHED NO.3425,
BHAGYODAY ROAD,
G.I.D.C PHASE 3 DARED,
JAMNAGAR-361004, INDIA

The correctness of this decision can be justified on the full basis:

1.

Industry Choice:
Many other industries are situated in this locality, and hence it is a
common choice of all the entrepreneurs in this business.

2.

Nearness to the Registered Office:

As the registered office located at Bhagyoday Road, the location of the
factory is near to the administrative office and the computer room which is useful
in faster communication.

3.

Market Proximity:
The location also provides proximity to the market in the sense that a
direct sale from factory is also possible.

4.

Transportation:
A transport facility with a good speed and capacity is needed to make
delivery on right time and at right place. While making a study of a location, an
entrepreneur considers the question of the availability of transport facilities. It
can be said that industries are largely depend upon transportation. In the firm we
use three vans to transport the finished goods to different cities.

5.

Rapid Sales:
As the factory location is nearer to industrial area of dared as well as
registered office locations are situated in the heart of the city, sales are bound to
increase at unimaginable rates.

MARKET POTENTIAL

As the construction of residential accommodation, office complex and the standard of

living is increasing day by day, demand for this item is also increasing specially in the sections
of society who are not able to afford air conditioned. It is understood that during the period of
last 10 years there is a rise in demand for the item @ 60 % p.a. and this trend is likely to
continue.

10

11

RAW MATERIALS

The main raw materials required for manufacturing Air Cooler are as follows:

1. GI Sheet

2. Cooler Motor

3. Pump Vertical

4. Wire Net

5. Filter Pad

6. Switches

7. Cable ( 3 core )

8. Hardware Items

9. Consumable Stores

12

NAMES AND ADDRESSES OF SUPPLIERS

[1]

M/s. Bharat & Bros.

52, Tagore Road,
Mumbai

[2]

M/s. Hardik Engineering Works,

Okhala Industrial Estate,
Rajkot

[3]

M/s. C. L.Viradia & Co.

1, Deshbandhu Gupta Road,
Mumbai

[4]

M/s. Piyush Engg. Co. Pvt. Ltd.

M-block,
Connaught Place,
Goa

[5]

M/s. Ravi & Bros. Ind.

3E/8, Jhandewalan Extension,
Baroda

[6]

M/s. Paresh&Parag India Ltd.,

68, Najafgarh Road,
New Delhi.

13

MANUFACTURING PROCESS

[1]

GI sheets are purchased from the local market and cut to size, louvers made and
bent for making the vertical sides, top cover and water pump. Filter pads are fitted in the
3 vertical sides and electric fan and vertical pump are mounted. On the grill is fixed
through which cooled air is brown out. Switches are provided in the front panel, vertical
sides, top cover are assembled together with screws/ nut and both assembled cooler is
then painted.

[2]

Assembled cooler is tested as per the requirement of ISO: 2000. The basic
requirements of the tests are as follows:

a)

Insulation Resistance Test :The insulation resistance between all electrical circuits, when measures at
normal room temperature with measure of 500 V DC.

b)

High Voltage Test :The electrical insulation all electric circuits shall be able to withstand high
voltage tests of 1000 V for single phase motors applied for not less than 2
seconds.

c)

Production Efficiency Test :Cooling efficiency and air delivery for various capacities of air coolers
shall be within the limits prescribed in relevant ISS.

14

[3]

Production Capacity:(a) Quantity 2500 nos. Air Coolers per annum

(b) Value Rs. 10,000,000

[4]

Approximate Motive Power Requirement:5 KW

[5]

Pollution Control Requirement:No Pollution control certificate is required for registration of the units for
manufacture of this item.

[6]

Energy Conservation Need:The design of the fan and electric pump should ensure minimum iron losses and
the cooler should be able to withstand cooling efficient and air delivery tests as per ISO:
2000

15

PRODUCT DETAIL

1) AG-100:

2) AG-125
3) AG-150

16

17

FINANCIAL DETAILS OF PRODUCT

1) LAND & BUILDING:
Location of Unit: - SHED NO.3425,

BHAGYODAY ROAD,
G.I.D.C PHASE 3 DARED,
JAMNAGAR 361004.
This is the location where all the infrastructure facilities are available. This location is called
G.I.D.C PHASE 3 DARED, and the survey.

Details of Need: - Business.

DETAILS OF LAND: - Urban Area.
[Table No.1]
Sr. No.
1

Particulars
Land

[Table No.2]
Sr. No

Square Feet

Rate

Total Value
(Rs.)

2,500

1000

25,00,000

Particulars

Area

Factory

Go-Down

400

Office Room

400

1,200

Total

Total Construction Cost = 2000 X 2000 = 40, 00,000

18

2,000

1) DETAILS OF MACHINERY:

[Table No.3]
No

Name of Machinery

Total value
(Rs.)

Guillotine Shearing Machines

7,50,000

Power Press 20 tons capacity

9,00,000

Screw type break press

4,50,000

Air Compressor complete with motor spray

50,000

Gas welding set

30,000

Portable electric drill

90,000

Multimeter

60,000

High voltage test set 3 KV

1,70,000

Total

25,00,000

2) FIXED CAPITAL AND FIXED COST :

[Table No.4]
No.

Fixed Capital

Amount
(Rs.)

Land

25,00,000

Building

40,00,000

Machinery

25,00,000
90,00,000

Total

19

3) WORKING CAPITAL REQUIREMENT:

[Table No.5]
No.

Particulars

Amount
(Rs.)
2,50,000

No. Of Days
requirement
1 Month

Raw Material

Administration Expenses

6,500

1 Month

Wage & Salary Expenses

22,000

1 Month

Current Expenses

15,000

1 Month

Repair & Maintenance

6,500

1 Month

3,00,000

Total

4) TOTAL COST OF PROJECT:

[Table No.6]
No.
Particulars
1

Owen capital

Amount
(Rs.)
73,00,000

Loan

56,00,000
Total

1,29,00,000

20

FINANCIAL PROVISION AND

SOURCES OF FINANCE
1) FINANCIAL PROVISION:

[Table No.7]
No.
Particulars

Amount
(Rs.)

Loans
(Rs.)

Own Capital
(Rs.)

Land

25,00,000

10,00,000

15,00,000

Building

40,00,000

26,00,000

14,00,000

Machinery

25,00,000

10,00,000

15,00,000

Other Expenses

3,00,000

3,00,000

Working Capital

36,00,000

10,00,000

26,00,000

Total

1,29,00,000

56,00,000

73,00,000

2) DETAILS OF SOURCES OF FINANCE:

[Table No.8]
No.
Particulars
1

Amount (Rs.)

Ownership Capital

73,00,000

Total

73,00,000

21

SALES, SALARY & WAGES, REPAIR &

MAINTENACE SCHEDULES.

1) DETAILS OF SALES:
[Table No.9]
No.
Details

Rate

Qty.

AG-100

7,000

230

Amount
(Rs.)
16,10,000

AG-125

7,500

300

22,50,000

AG-150

8,560

250

21,40,000

TOTAL

60,00,000

2) RAW MATERIAL:
[Table No.10]
No.
Details
1

Raw Materials

Monthly
(Rs.)

Yearly
(Rs.)

2,50,000

30,00,000

3) SALARY & WAGES:

[Table No.11]
No.
Details

Per Person

Accountant

Monthly
(Rs.)
9,000

Office Boy

6,500

1,56,000

Unskilled Workers

3,500

2,94,000

Watchman

3,000

72,000

Total

22,000

6,30,000

22

Yearly
(Rs.)
1,0,8000

4) DEPRECIATION:
[Table No.12]
No.
Details

Amount
(Rs.)

Rate

Total
(Rs.)

Machinery

25,00,000

10%

2,50,000

Building

40,00,000

10%

4,00,000

Motorcar

5,50,000

10%

55,000
7,05,000

Total Depreciation

5) ELECTRICITY:
[Table No.13]
No.
Details
Electricity

Amount
(Rs.)

Total
(Rs.)

6,000

72,000

6) REPAIRING & MAINTENANCE:

[Table No.14]
No.
1

Details

Repairing & Maintenance

23

Amount
(Rs.)

Total
(Rs.)

10,000

1,20,000

7) ADMINISTRATION DETAILS:
[Table No.15]
No.

Details

Monthly
(Rs.)

Yearly
(Rs.)

Printing & Stationery

1,500

18,000

Postage & Telegram

1,000

12,000

Telephone Expenses

2,000

24,000

Others

2,000

24,000

Total

6,500

78,000

8) INTEREST:
[Table No.16]
No. Details

Capital
Amount(Rs.)

Interest
(Rate)

Annual Rs.

Owners capital

73,00,000

10%

7,30,000

Borrowed capital

56,00,000

5%

2,80,000

Total

1,29,00,000

24

10,10,000

PROFIBALITY ANALYSIS
[Table No.17]
NO. Particulars

1.

Sales

(x)

Amt.

Amt.

Amt.

(2013)

(2014)

(2015)

60,00,000

64,00,000

72,00,000

Less: Cost of production

A)

Raw materials

30,00,000

33,00,000

36,30,000

B)

Salary & Wages

6,30,000

6,40,000

6,60,000

C)

Electricity

72,000

78,000

82,000

D)

Repairs & maintenance

1,20,000

1,37,500

1,51,250

E)

Interest on capital

7,30,000

8,03,000

8,83,300

F)

Depreciation

7,05,000

6,34,500

5,71,050

G)

Administrative Expenses

78,000

85,800

94,380

H)

Interest on borrowed capital

2,80,000

2,55,000

2,25,000

(y)

56,15,000

59,33,800

62,96,980

3,85,000

4,66,200

9,03,020

Up to 1,80,000

Nil

Nil

Nil

From 1,80,000 to 5,00,000

20,500

28,620

32,000

Nil

Nil

60,000

Nil

Nil

30,906

20,500

28,620

1,22,906

3,64,500

4,37,580

7,80,144

Gross Profit

(a)=(x-y)

Less:

@ 10%
From 5,00,000 to 8,00,000
@ 20
8,00,000 or above @ 30%
(b)
Net Profit

(a-b)

25

BALANCE SHEET
[Table No.18]
Amt.

Amt.

Amt.

(2013)

(2014)

(2015)

Own Capital

73,00,000

80,30,000

88,33,000

Net profit

3,64,500

4,37,580

7,80,144

Other liabilities (loan)

56,00,000

51,00,000

45,00,000

1,32,64,500

1,35,67,580

1,41,13,144

25,00,000

25,00,000

25,00,000

22,50,000

20,25,000

18,22,500

4,95,000

4,45,500

4,00,950

36,00,000

32,40,000

29,16,000

3,00,000

3,30,000

3,63,000

91,45,000

85,40,500

80,02,450

Debtors & Bills Receivable

36,00,000

42,60,000

49,28,241

Cash & Bank

5,04,500

6,22,280

9,11,803

Inventory(stock)

1,65,000

4,74,800

6,20,650

42,69,500

53,57,080

64,60,694

1,50,000

3,30,000

3,50,000

41,19,500

50,27,080

61,10,694

1,32,64,500

1,35,67,580

1,41,13,144

PARTICULARS

Sources of Funds:

Total

Application of Funds:

Fixed Assets.
Land
Machinery

25,00,000

Less: Dep.

2,50,000

Motorcar

5,50,000

Less: Dep.

55,000

Building

40,00,000

Less: Dep.

4,00,000

Working Capital
x=
Current Assets

(a)
Less: Current liabilities
(creditors)
Net current capital
Total

(b)
y = (a-b)
x+y

26

BREAK EVEN ANALYSIS

Break Even point is the situation or the level at which the level of the production of the
unit is such that all its costs are covered fully and there is no profit. This is also known as No
Profit, No Loss Situation.

BEP Analysis is must for every unit because it is to be represented to the banks while
applying for loans. A low break-even point is preferable because it shows that a firm can over its
cost within a short period of time.

No. Particulars
A

Sales

Variable Costs

C
D
E

Raw Materials
Repairs & maintenance
Interest on capital
Administrative Expenses
Interest on borrowed capital
Contribution [A] - [B]
Fixed Costs
Break-Even Point [D] [C]

Amount
(Rs.)

Amount
(Rs.)
60,00,000

30,00,000
1,20,000
7,20,000
78,0000
2,80,000

27

42,08,000
17,92,000
14,27,500
79.66

RATIO ANALYSIS
a.

GROSS PROFIT RATIO: Gross Profit X 100

Sales Of year
3, 85,000 X 100
60, 00, 000
= 6.42%

b.

Net Profit Ratio: Net Profit X 100

Sales of Year
3, 64,500 X 100
60, 00,000
= 6.075%

c.

Return on Investment:Profit X 100

Capital Invested
3, 64,500 X 100
1, 29, 00,000
= 2.83

28

29

INTRODUTION

Personnel management is a part of management that dealing effective control and use
of man power. Humans have dynamic nature different person are having different nature,
behaviors man ability etc. so it is challenging job.

In brief we can say that personnel management is concern with 4M that is man,
money, machine and market. The man is only very active and important factor of the Production
department in the organization.

Personnel Management is concerned with the planning, organizing, direction &

controlling the activity with procurement, development, compensation, integration, maintains
and separation of human resources to the end that individual, organizational and societal
objectives are accomplished.

30

RECRUITMENT AND SELECTION

RECRUITMENT

Recruitment is to make prospective candidates apply for a Vacancy and

employ them by contacting various sources. It is to be made when an enterprise is established;
employee resigns, dies or retires. It can be possible in the following sources:
Generally ANGEL AIR COOLR makes three types of recruitment
procedure.

Recruitment

Advertisement

Contractor

Direct
recruitment

[Chart No.1]
31

SELECTION:

When recruitment ends, selection starts. Selection is the process of choosing

the most suitable candidate out of total member of applicants. In Angel Air cooler
following steps or stages involved in selection procedure.

Receiving of applications

Education Status
Interview

Final Selection
Placement
[Chart No.2]
32

TRAINING & DEVELOPMENT

In this company worker are trained by the head of the department. They are given
necessary training. For the worker training is given mostly on the job so that not only employee
but also mgt. comes to know the problem and can take corrective action to avoid it.

MANAGEMENT DEVELOPMENT is a systematic process of growth and

development by their abilities to manage. So it is result of not only participation in formal
sources of instruction but also actual job experience. As far as ANGEL AIR COOLER is
concern, it is medium scale industry then also company is providing Training & Development to
their worker and office staff.

There are two types of training are given in ANGEL AIR COOLER to employees:

1. On The Job Training

2. Off The Job Training

33

PROMOTION POLICY

Promotion is a very good policy in the organization. It is a useful for both employees and
organization therefore the need of a formal systematic programmed of promotion and this
promotion programmed can be said to be promotion policy.

Promotion is given to a person when the work of any employees comes at satisfactory
level at that time. The person has been get higher job than the existing job with the increasing
responsibilities and more wages is to be given employees get a motivation when he is promoted
for higher job.

The ANGEL AIR COOLER is a private limited so that its gives the promotion to their
employees as per his agreement and the performance of any employees is found to be satisfied
than and then. The management of given the permanently set up in the organization. ANGEL
AIR COOLER not only consider seniority base but also consider the qualification of the
employee. So that we can say that the ANGEL AIR COOLER gives the promotion to his
Employees on the bases of seniority and qualification of the person.

Definition:
Promotion involves a change from one job to another that is better in term of
status and responsibilities.

34

TRANSFER POLICY

This transfer is a process of employees adjustment with the work time and place. A
transfer is a horizontal or lateral management of an employee from one job section department,
shift, plant or position to another at the same or another place where his salary status and the
responsibilities are the same it generally does not involves a promotion, demotion or change in
the job status.

35

PERFORMANCE APPRAISAL

Performance appraisal is a systematic evaluation by the supervisor or some qualified

person of an individual workers performance .According to Yoder , performance appraisal
refers to all formal procedures used in working organization to evaluate personalities and
contribution and potential of group members,

The performance appraisal policy adopted

by ANGEL AIR COOLER helps it to take

correct decision regarding promotion, transfer, posting, etc. for the employees.

At ANGEL AIR COOLER they believe associates and managers who are engaged,
developed and stretched need to be rewarded. To pay for performance is one of the guiding
principles of ANGEL AIR COOLER Compensation strategy. They offer compensation and
benefits programs that drive the achievement of their business objective .Their compensation
and benefits is benefits is designed to attract , motivate and retain associates that share
ANGEL AIR COOLER Values and contribute to their high performance organization

36

EMPLOYEE WELFARE & BENEFIT

Company has main objectives of profit maximization. But only profit maximization is not
important. They have many objectives and provide benefits and labor welfare one of them.
To motivate workers and feel them secure Angel Air Cooler doing many such activities
are as under:Medical Facility: Angel Air Cooler provides the facility of medical to their employees who
are working in organization.

Bonus:-Angel Air Cooler provides the facility of the bonus to their employee on well-known
festival like Diwali. Through this way organization can motivate the employee.

Special Leave: - Angel Air Cooler provides special leave to their employee on special
occasion like Marriage, and also in serious case. Company is not strict when they want to leave
for the genuine reasons if they have used their leaves.

Separate fund: - A separate fund has been created whereby workers contribute one-day salary
and the company is contributing the same. The money in this fund is proposed of workers.
NPS provides provided fund facility as per the government norms.

Safety of employees: A mass insurance is likely to be implemented in workers whereby each

worker would be insured of sum of Rs. 2 Lacs.

Entertainment facility: - Angel Air Cooler provides music system facility to the workers to
increase efficiency and to reduce burden of works. They have a good garden also if the employee
feel burden of work then they can go there to become fresh and enjoy good environment.
37

38

INTRODUCTION

Marketing Management today is the subject of interesting all types of organizations,

within and outside the business sector and in countries throw out the world.

Marketing is a social and managerial process by which individual and group

obtain what they need and want, creating and exchanging, value and product with each
other.
- Phillip Kotler

Marketing compels all activities involved in the determination and the satisfaction
of consumers need at a profit.

Marketing is a comprehensive term and it includes all resources and a set of

activities necessary to direct and facilitate the flow of goods and services from producer to
consumer in the production process. Human efforts, finance and management constitute the
primary resources of marketing. Marketing diminishes the gap between the producer and
consumer.

39

MARKETING MIX

These four ingredients are closely interrelated. Under the system approach, the decision
inane area affects action in the other. Marketing mix decision constitutes a large part of
marketing management. Marketing manager is a mixer of all marketing ingredients and he
creates a mix of all marketing elements and resources. Marketing mix offers an optimum
combination of all marketing ingredients so that we can have realization of company goals such
as profit, return on investment, sales volume, and market share and so on. It is the profitable
formula of our marketing operations.

The elements or variables that make up marketing mix are only four.
Decision on Product or service
Decision on Price
Decision on Promotion
Decision on Place/distribution

40

MARKET SEGMENTATION

Marketing segmentation means to divide a market into different groups of customers.

According to Philip Kotler marketing segmentation can be defined as

The process of classifying customers into groups exhibiting different needs,

characteristics or behavior is called market segmentation. Every market is made up of market
segments.

Say for example,

If a market is divided into two segments, one consisting of customers of metro cities and
the other consisting of customers of non-metro cities, the criterion adopted is geographic
segmentation.

Thus, there are different variables which can be used as criteria for market segmentation
like geographic, demographic, psychographic, behavioral etc. We follow geographic market
segmentation as our market for Air Cooler is concentrated mainly at Delhi, Mumbai, Chennai
and Bangalore.

41

CONSUMER BEHAVIOR

Todays companies are facing their toughest competition ever. These companies can
outdo their competition if they can move from product and sales philosophy to a marketing
philosophy. We spell out in detail how companies can go about winning customers and
outperforming competitors. The answer lies in doing a better job of meeting and satisfying
customers needs. Only customer-centered companies are adept at building customers, not just
building product. They are skilled in market engineering, not just product engineering.

Consumer behavior is main part of marketing department. In Angel Air Cooler consumer
satisfaction is important. Thus Angel Air Cooler provided good quality product and after sales
service to his customers and give extra benefit to customer. Angel Air Cooler makes different
types of air cooler according to his customer needs. Thus Angel Air Coolers high demand in
market.

42

ADVERTISEMENT

Advertising is one of the five major tools a company uses to direct pursue
communication to target buyers and sellers. In the modern business world of transmission of
ideals, thoughts, views and development we cannot imagine a world without advertising.

Advertising is one of the five major tools a company uses to direct pursue
communication to target buyers and sellers. In the modern business world of transmission of
ideals, thoughts, views and development we cannot imagine a world without advertising.

For advertising the 1st step is made is media selection. Angel air cooler uses following
media for advertising.

NEWSPAPERS

HOARDINGS

43

SALES PROMOTION

Sales promotion means special efforts made for sales. The importance of sales
promotion in modern marketing has increased mainly on account of its ability in promoting sales
and preparing the ground for future expansion. The main objective of sales promotion is to
attract the prospective buyer towards the product and induce them to buy the product.

Sales promotion is necessary for all organization. It consists a diverse collection of

incentive tools. Mostly short term designed to stimulate quicker and greater purchase of
particular products by consumers. Is is required for increasing the sales. It includes coupons,
demonstration, exchange offer, price off offers, context, etc.

Angel Air Cooler Issues stickers, calendars, and gives gifts to customers as well as
retailers, send greeting cards, etc.

The sales network of Angel Air Cooler in Gujarat, Maharashtra and other states.

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DISTRIBUTION CHANNEL

Channel of distribution is the set of marketing institutions participating in the

marketing activities involved in the movement of the flow of goods or services from the primary
producer to the ultimate consumer.

ANGEL AIR COOLER Has following distribution channel.

COMPANY

DEALER

FINAL
CUNSUMER

[Chart No.3]
If company produce the consumer goods it is almost impossible for producer to sell the
product directly to the consumer.

45

PRESENT POSITION & FUTURE SCOPE

Today, Air cooler proved its significance that it is a part of cooling. As there are very few
units in Saurashtra producing Air cooler, we have wider scope. Very first, our main aim is to take
over the market of Saurashtra. The unit will have an upper hand over the competitors due to
better marketing, personnel, finance & production within 2 years.

We utilize maximum we have, our capacity is to increase the capacity up to 90%. We

also change the air coolers feature, design and portability. We are going to introduce some new
air cooler.

Due to high profit volume ratio, we are able to repay the loan.

46

CONCLUSION

To conclude here we can say that SSI (Small Scale Industries) are contributing good
amount of contribution in the development of the developing country like India. In spite of
having such a big contribution, financial crisis has always being a big problem face by the SSI.
Here in case of Temperature Air coolers the problem of finance has fully been resolved by the
owners and the loan provided by the bank. This industry will grow very much faster in the near
future. Such industry has a full scope of development in the near future. The products
manufactured by this unit are in big in demand in present days and this product will have big
demand in the near future. The firm has used to its level best the present day technology and still
they are involving themselves in developing new and innovative product.

47

APPENDIX

Tables details
Table
No.

Particular

Page
No.

Details Of Land

21

Details Of Factory, Go-Down and Office Room

21

Details Of Machinery

22

Fixed Capital And Fixed Cost

22

Working Capital Requirement

23

Total Cost Of Project

23

Financial Provision

24

Details Of Sources Of Finance

24

Details Of Sales

25

10

Raw Material

25

11

Salary & Wages

25

12

Depreciation

26

13

Electricity

26

14

Repairing & Maintenance

26

15

Administration Details

27

16

Interest

27

17

Profibality Analysis

28

18

Balance Sheet

29

48

Detail of Chart

Chart

Particulars

No.

Page
No.

Recruitment

34

Selection

35

Distribution Channel

48

49

BIBLIOGRAPHY

1. Desai Vasant, Small Scale Industries & Entrepreneurship, and 5th Revised Edition: 2001.
Himalaya Publishing House.

2. Sharma Ravi. K. & Gupta Shashi K, Finance Management,

4th Edition 2003-04, Kalyani Publishers.

3. Kotler Philip, Marketing Management, Prentice hall of India, 11th Edition 2004,
Himalaya Publishing house.

50