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Alcohol and Wine Vending

Machine

A Business Plan
Submitted in partial fulfillment of
The requirements for the
Degree of Bachelor of Technology
Under Biju Pattnaik University of Technology

By
Priyanka Prasad Roll #IT200475032
Mallika Sinha Roll #EIE200475028
Kumari Shalini Roll #ELE200460151
Amrita Das Roll #ELE200460434

2007-2008

NATIONAL INSTITUTE OF SCIENCE &TECHNOLOGY


PALUR HILLS, BERHAMPUR– 761008, ORISSA, INDIA
ABSTRACT

In the modern era, technology is spreading its domain to make human life compatible
by providing all needs. Wine vending machine is one of the electronics product
commonly used in bars, restaurants and clubs. With the advanced technology used we
have tried to save time and money of our customers. Its working principle is some how
similar to a coffee vending machine. we started working in Embedded systems and is
still continuing research work to find more facilities to include in our product. The main
purpose of including these functions is to make customers work easy and perform
things quickly.

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ACKNOWLEDGEMENT

We express our deep sense of gratitude to, Mr. Jagannath Mohanty, for his valuable
guidance and constant unfailing encouragement for completing this project.

We are also grateful to our friends for tirelessly and patiently pursuing us to finish this
report without whose help completion of the project report was the next thing to
impossible.

Finally, we would like to thank Prof. Sangram Mudali, our respected director, for
providing us proper environment for the completion of the report.

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TABLE OF CONTENTS

ABSTRACT.........................................................................................................................i
ACKNOWLEDGEMENT...................................................................................................ii
TABLE OF CONTENTS...................................................................................................iii
1. GENERAL INFORMATION..........................................................................................v
1.1 Name of the Entrepreneurs:.......................................................................................v
1.2 Proposed Project:.......................................................................................................v
1.3 Major Product / Services:..........................................................................................v
1.4 Proposed Locations:..................................................................................................v
1.5 Type of Organization:................................................................................................v
2. ENTREPRENUER PROFILE.........................................................................................6
3. TYPE OF THE PRODUCT / SERVICES.......................................................................7
3.1 Type of the Project ...................................................................................................7
3.2 Product / Services Description .................................................................................7
3.3 Major Consumers .....................................................................................................7
4. MARKET POTENTIAL.................................................................................................8
4.1. Present Demand and Supply of the Product Competition .......................................8
4.2 Target Clients:...........................................................................................................8
4.3 Marketing Strategy:...................................................................................................8
5. MANUFACTURING PROCESS....................................................................................9
5.1 Technical Know How Availability: ..........................................................................9
5.2 Steps by Step Description:.........................................................................................9
5.3 Process flow chart ...........................................................................10
6. PRODUCTION SCHEDULE........................................................................................11
6.1 Number of Working Days per Annum:...................................................................11
6.2 Number of Working Shifts:.....................................................................................11
6.3 Installed Capacity (%):............................................................................................11
6.4 Utilized capacity (%):..............................................................................................11
7. DETAILS OF THE PROPOSED PROJECT................................................................12
7.1 Land and Building:..................................................................................................12

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7.2 Machineries / Equipments:......................................................................................12
7.3 Miscellaneous Fixed Assets:...................................................................................12
7.4 Preliminary and Pre Operative Expenses:...............................................................13
7.5 Sales Revenue:.........................................................................................................13
7.6 Raw Material:..........................................................................................................13
7.7 Utilities:...................................................................................................................14
7.8 Man Power (Salaries/Wages):.................................................................................14
Repairs and Maintenance:..............................................................................................14
7.10 Selling and Distribution Expenses:........................................................................15
7.11 Administrative Expenses:......................................................................................15
7.12 Interest:..................................................................................................................15
7.13 Depreciation:.........................................................................................................15
8. WORKING CAPITAL..................................................................................................16
9. TOTAL COST OF PROJECT.......................................................................................17
10. MEANS OF FINANCE...............................................................................................18
11. PROFITABILTY PROJECTIONS ............................................................................19
12. BREAKEVEN POINT...............................................................................................20

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1. GENERAL INFORMATION

1.1 Name of the Entrepreneurs:

Priyanka Prasad
Mallika Sinha
Kumari Shalini
Amrita Das

1.2 Proposed Project:

Alcohol and Wine Vending Machine.

1.3 Major Product / Services:

In Club, Restaurant and Bars, Pubs

1.4 Proposed Locations:

Paradeep

1.5 Type of Organization:

Product based medium scale unit

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ALCOHOL AND WINE VENDING MACHINE

2. ENTREPRENUER PROFILE

1. Name : Priyanka Prasad


Educational Qualification: Bachelor of Technology
Technical Skills: C, C++, Oracle, Embedded System.
2. Name: Mallika Sinha
Educational Qualification: Bachelor of Technology
Technical Skills: C, C++, Oracle, Sensors, Control system, VLSI,
process control.
3. Name: Kumari Shalini
Educational Qualification: Bachelor of Technology
Technical Skills: C, C++, Oracle, Linear Control System
4. 4. Name: Amrita Das
Educational Qualification: Bachelor of Technology
Technical Skills: C, C++, Oracle, VLSI.

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ALCOHOL AND WINE VENDING MACHINE

3. TYPE OF THE PRODUCT / SERVICES

3.1 Type of the Project

Alcohol and Wine Vending Machine.

3.2 Product / Services Description

With automated facilities targeted mainly at Clubs, Bar and


Restaurants.

3.3 Major Consumers

Bar and Restaurant owners.

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ALCOHOL AND WINE VENDING MACHINE

4. MARKET POTENTIAL

4.1. Present Demand and Supply of the Product


Competition

Present demand is there mainly in bars & clubs. There are no competitors in India
As there are no manufacturers.

4.2 Target Clients:

We are looking forward for major cities of Orissa, West Bengal and Andhra Pradesh.

4.3 Marketing Strategy:

The Marketing Strategy will be advertising the product in the media and by company’s
representatives by visiting various target clients and by making them aware of the
features, application and the type of technology used in product.

Advertisements: –
Mainly by our representatives
Free service after sale for 1 year
Free demonstration while launching the product.

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ALCOHOL AND WINE VENDING MACHINE

5. MANUFACTURING PROCESS

5.1 Technical Know How Availability:

Materials related to embedded systems, VHDL, fundamentals of VLSI, C-


programming, Xilinx, digital electronic circuits, and sensors, basics of control systems.
Working platform is Windows XP.
Programming skills like C, C++.
Software used is XPS, ISE XILINX-8.1i, and Chip Scope Pro.
Hardware used is XILINX FPGA (Spartan3, Virtex)

5.2 Steps by Step Description:

1) Design of the cabinet by moulding machines to desirable shape and size.


2) Design of control unit by using the base system builder (BSB) developed using
Xilinx platform studio, sensors developed by the research department and tested
And certified by the quality department of the company.
3) Predesign 8-bit microprocessor controlled by embedded systems.
4) Assembly of the above sections with the functional and quality testing.
5) Package and storage of the product in the inventories.
6) Supply of vending machines to the vendors and dealers

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ALCOHOL AND WINE VENDING MACHINE

5.3 Process flow chart

START

Arrangement of all necessary equipments in the proposed location.

Design of the cabinet by moulding machines to desirable shape and


size.

Design of control unit by using the base system builder (BSB)


developed by the research department and tested and certified by
the quality department of the company.

Predesign 8-bit microprocessor controlled by embedded systems.

Assembly of the above sections with the functional and quality


testing.

Package and storage of the product in the inventories.

Supply of vending machines to the vendors and dealers

STOP

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6. PRODUCTION SCHEDULE

6.1 Number of Working Days per Annum:

The Firm will remain open for all weekdays except Sundays and National
holidays. Number of working days per annum=300 days.

6.2 Number of Working Shifts:

2 shifts

6.3 Installed Capacity (%):

10 machines per day =>3000 machines per annum.

6.4 Utilized capacity (%):

I -year- 40%- 4 machines per day -1200 machines per year


II -year- 50%- 5 machines per day -1500 machines per year
III -year- 60%- 6 machines per day -1800 machines per year

Sr. No. ITEM Quantity Capacity


produced per year Utilization
1. Automatic washing 03 per day 60%
machine without =900machines per
drying and ironing annum
2. Automatic washing 03 per day 60%
machine with =900machines per
drying and ironing annum

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ALCOHOL AND WINE VENDING MACHINE

7. DETAILS OF THE PROPOSED PROJECT

7.1 Land and Building:

Sr. No. Particular Area Required Total Value Remarks


1. Land 5 acres Rs.15, 00,000

2. Building 9 acres Plant Rs.35, 00,000


3 acres Admin Rs.10, 00,000
office
3 acre for
transportation
Total: Rs.60, 00,000

7.2 Machineries / Equipments:

Sr. No. Description Nos. Required Rate (Rs.) Total Value (Rs.)
1. Plastic Molding 50 4,00,000 2,00,00,000
Machines
2. Mixer 100 2,00,000 2,00,00,000
3. 8-bit 100 1,00,000 1,00,00,000
Microprocessor
Total: 5,00,00,000

7.3 Miscellaneous Fixed Assets:

Sr. No. Description Nos. Required Rate (Rs.) Total Value (Rs.)
1. Office Furniture 10sets 5000 50,000
2. Furniture for factory 10sets 5000 50,000
canteen
4. Motor vehicles 2 cars 5,00,000 10,00,000
(For raw material
and finished product 2 trucks 8,00,000 16,00,000
marketing)
Total: 27,00,000

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ALCOHOL AND WINE VENDING MACHINE

7.4 Preliminary and Pre Operative Expenses:

Sr. No. Particulars Amount (Rs.) Remarks


1. Interest during 6 monthly interests @
implementation 10% per
annum=5,00,000 on
2,00,00,000 term loan
Agreement fees, Printing
of prospectus, shares, etc.
2. Establishment 2,00,000
Expenses
3. Start-Up 6,00,000
Expenses
Misc. expenses
Total 13,00,000

7.5 Sales Revenue:

Year ITEMS Quantity Rate per unit Sales


sold/year Realization
No.1 900 15,000 1,35,00,000
No.2 900 20,000 1,80,00,000
Total 3,15,00,000

7.6 Raw Material:

Sl.No. All ITEMS Quantity Rate Total value per year


1. No.1 - 4,000 per set 4,000*900=36,00,000
2. No.2 - 7,000 per set 7,000*900=63,00,000
Total 99,00,000

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ALCOHOL AND WINE VENDING MACHINE

7.7 Utilities:

Sl. No. Particulars Annual Expenditure (Rs) Remarks


1. Power/Electricity 10,00,000
2. Water 3,00,000
3. Coal/Oil/Stream 20,00,000
4. Any other item 5,00,000

Total 38,00,000

7.8 Man Power (Salaries/Wages):

Sl.No. Particulars No. Wages/Salaries per Annual


Month (Rs.) Expenses (Rs)
1. Skilled 12 30,000 3,60,000
(Foreman &
Supervisory staff)
2. Semi Skilled 30 20,000 6,00,000
(Assistant Supervisor)
3. Unskilled 250 10,000 25,00,000
(Lower management
workers)
4. Office Staff & 50 20,000 10,00,000
Executives
5. Others (temporary) 50 5,000 2,50,000

Total 47,10,000

Repairs and Maintenance:

Sl.No. Particulars Amount (Rs)


1. Machinery, Building, Roads, Plant 5,00,000

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ALCOHOL AND WINE VENDING MACHINE

7.10 Selling and Distribution Expenses:

Sl.No. Particulars Amount (Rs) Remarks


1. Publicity Expenses (TV & 5,00,000
Newspaper)
2. Traveling 7,00,000
3. Freight 50,000
4. Commission 50,000
13,00,000
Total

7.11 Administrative Expenses:

Sr. Particulars Amount (Rs) Remarks


No
1. Stationery & Printing 1,75,000
2. Post/Telephone/Telegrams 1,25,000
3. Entertainment Expenses 1,50,000
(Guests, functions, etc)

4,50,000
Total

7.12 Interest:

Year Outstanding Interest Installment(Rs) Balance(Rs)


Loan Amount
(Rs)
3rd year N.A 42,00,000 N.A. N.A.

7.13 Depreciation:

Sl.No. Type of Asset Cost of Asset Expected Life Depreciation


1. Factory 5,00,00,000 20yrs 25,00,000
2. Office 27,00,000 10yrs 2,70,000
Total 27,70,000

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8. WORKING CAPITAL

Sr. No. ITEM Rs.


1. Raw-Material 12,500*900=25, 00,000p.a.
2. Salary/Labour 10, 00,000p.a.
3. Rent 10, 00,000p.a.
4. Interest on loan 5,00,000p.a.
Total 50,00,000p.a.

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9. TOTAL COST OF PROJECT


Sl. No. Particulars Total Value(Rs.)
1. Fixed Capital 5,87,00,000
(Total if item No.2.1,2.2,2.3)
2. Working Capital margin 50,00,000
(Total of item No. 2.5)
3. Preliminary & Pre-operative 5,00,000
Expenses
(Total of item No. 2.4)

Total 6,57,00,000

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10. MEANS OF FINANCE


Sl. No. Particulars Amount Remarks
(Rs.)
1. Own Investment 2,00,00,000
2. Term Loan 3,00,00,000 (SBI, SFC)
3. Working Capital Loan 1,00,00,000 (SIDBI, IDC)
4. Any Other Source 20,00,000
Total: 6,20,00,000

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11. PROFITABILTY PROJECTIONS

Sr. No. Particulars Amount (Rs.)


A. Sale Realization 3,15,00,000

B. Cost of Manufacturing/
Servicing
i) Raw Material 99,00,000
ii) Utilities 35,00,000
iii) Salaries/Wages 47,10,000
iv) Repairs & Maintenance 5,00,000
v) Selling & Distribution 13,00,000
Expenses
vi) Administrative Expenses 4,50,000
vii) Interest 60,20,000
viii) Rent 3,50,000
ix) Depreciation 27,70,000
x) Misc. Expenses 5,00,000

Total 3,00,00,000

C. Gross Profit/Loss (A-B) 15,00,000


D. Income-tax 4,00,000
E. Net Profit/Loss 11,00,000

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12. BREAKEVEN POINT


The point where manufacturer faces no loss and no gain is called break even point.
Break Even Point = (fixed cost * 100)/ (fixed cost + profit)
=(2,60,00,000*100)/(2,60,00,000 +1,00,00,000)
= 72.22

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