ON

ESTABLISHING A
SMALL SCALE
INDUSTRY i.e.
MASALA FACTORY
 PREFACE
The term “entrepreneurship” means risk bearer ‘as the demand of
the current economic development, everybody is required to enter in
to entrepreneurship to provide the job to other persons as well as to
make our country’s economy strong.

As we are concerned we have studied entrepreneurship as a subject,

and to gain the practical knowledge we are required to study techno
economic feasibility of any project and for this purpose

CO-OPERATIVE dealing in masala and the brand name is

LAXMI BRAND MASALA.
 CONTENTS
Preface
Acknowledge
Project undertaken
Concept of entrepreneurship
Relation between entrepreneurship & entrepreneur
Concept of women entrepreneur
Problem of women entrepreneur
Objectives of the co-operative
Ownership selected
Advantage & disadvantage of co-operative
Marketing research
Survey
Classification of the project
Characteristics of small- scale industry
Vision & mission of the co-operative
Plant layout
Product manufacturing procedure
Flow chart
Size of the factory
Layout of the factory
Factories policies &guidelines
Role of finance, ratio analysis
Branding &packaging
Marketing strategy
Procedure for registration of trademark
Conclusion
Appendix
About a world’s great entrepreneur (Shahnaz Hussain)
Bibliography
 OWNERSHIP SELECTED
We have decided to work in a co-operative form of business
ownership.

CO-OPERATIVE

The co-operative form of organization is based on the philosophy of

self-helpand mutual help. It differs from the other three form of
business ownership. The basic line of difference is a co-operative
organization aims at rendering services in place of earning profits.

There are 5 members in our co-operative. Each member have a

mutual understanding each other.we have trust on each other and
on the basis of these we will successful in establishing a small scale
industry i.e. MASALA FACTORY.

MAIN FEATURES:

Voluntary Organization
Service Motive
Government Control
Distribution of Surplus
Capital and return thereon
Democratic management
 SURVEY
Survey is the most commonly used methods of primary data
collection in marketing research. This is widely used because of its
extreme flexibility. Also, it is the most abused method because
many surveys are conducted where questions are biased or poorly
stated, interviewers are poorly trained, or the sample interviewed is
not really a representative of the population.

SURVEY TECHNIQUES:

Once the researcher has decided to use survey methods for

collecting primary data, he should make a decision in connection
with the techniques of survey or contact method, viz., personal
interview, telephone survey, and small survey. This can do after
evaluating each of these methods in view of research project
undertaken. The evaluation of survey techniques can be conducted
by analyzing the advantages and disadvantages associated with each
of these. In the ensuing text, we take up for discussion each of these
techniques.

PERSONAL INTERVIEW:
In personal interview, the investigator questioned the respondents in
a face-to-face meeting. Personal interviews may be conducted on a
door-to-door basis or in public places such as shoping centers. The
usual approach for the interviewer is to identify himself to a
potential respondent and attempt to secure the respondent’s co-
operation in answering a list of predetermined questions. These
answers may be tape-recorded or written down by the interviewer.
Despite high cost, the personal interview can provide critical types
of information on knowledge, intentions, demographic
characteristics, attitude, opinions, and life styles. In India, this
method is very widely used and is considered as the most effective.

TELEPHONE SURVEY:

In telephone survey, prospective respondents are telephoned, usually

at homes, and asked to answer a series of questions over the
telephone.
This form of then survey technique has become more popular
in recent years in advanced countries because more people are
having telephones at their houses. In India, still this method does not
find much use, as many homes do not have personal telephone
systems.
 VISION & MISSION OF THE
CO-OPERATIVE

VISSION

PURE FOR SURE:

Our vision is to establish our product as a pure Masala Product, and
thus making a competitive edge over our close competitors.

MISSION
To provide the hygiene & adulteration freeMasala’s to whole of the
India.

PLANT LAYOUT
During the course of technical arrangement of various facilities such
as machinery, equipment etc., it is very necessary to give
considerable emphasis on a proper plant layout to achieving their
optimum utilization. Like industrial location, plant layout also is of
great strategic importance. The reason is that once the plant and
equipments are erected, it would be very difficult and costly to
change layout. Therefore, one needs to keeping mind some
important aspects while deciding the plant layout. These are:

(i) Production technology and production mix.

(ii) Efficiency, economic and uninterrupted flow of men and
material.
(iii) Adequate space for maintenance work.
(iv) Scope for future expansion and diversification of the
project.
(v) Adequate safety precautions, as and when needed.
(vi) Healthy conducive layout of the plant.
(vii) Proper lighting and ventilation.
(viii) Proper provision for effluent disposal, if necessary.
(ix) Effective supervision of all sorts of activities carried at
the plant layoutside.
(x) Provision for proper storage, stocking space, etc., where
needed.

PRODUCT
MANUFACTURING
PROCEDURE
STEP-BY-STEP:

1. Factory purchased raw masala from the outer areas like Lucknow,
Kanpur, Delhi and from other near by areas.

2. These masalas are exposed to direct sunlight for further drying.

3. Workers & the other dust particles now clean the dry masala
properly, stones are thrown out.

4. Masalas are then sieved properly in thick sieves by the workers.

5. The cleaned masala are treated in machines for blending.

6. The blended masala are then gathered in large trays.

7. It is sieved through very thin sieves by the workers.

8. Now it is packed in the packets of 100gm., 250gm., 500gm., and

1kg.

9. The weighing and tacking procedure is done by the workers.

10. Lastly the packets of masala are prepared separately.

 FLOW CHART

B
CLEANED DRY
L
MASALA IS
E
READY FOR
N
BLENDING.
D
STONES AND
I
OTHER DUST
N
PARTICLES
G

SEIVING POWDERED PACKING&

PROCESS BY MASALA IS TACKING
THIN SEIVES READY. PROCESS

100 250
500
1 KG.
GM GM GM. HALDI
Hald
i
mirch Mirch
DIFFERENT PACKS ARE READY

SIZE OF THE FACTORY

LAXMI BRAND MASALA factory is a small-scale industry. It has
total turnover of 5crore rupees per annumn. Its total workers 60
out of which 40 permanent workers and other is on contract basis.

Total accommodation of converted area of the factory is1000

square feet, which is divided as:

Area covered by office: 100 square feet

Area covered by production work: 600 square feet

Area covered by product handling: 200 square feet

Area covered by electricity generator: 50 square feet

Area covered by parking for scooter, cycle etc.

LAYOUT OF THE FACTORY

FACTORY POLICIES AND
GUIDELINE
HUMAN RESOURCE MANAGEMENT

REGULATORY LAWS

Modern business aims at social advantage also and, therefore, is

characterized by the applicability of various laws to it. These laws
have been passed by the Central and State Governments to regulate
the running of the business enterprises whether large or small. It is
necessary for the business owners, i.e. the entrepreneurs to have an
enlightened awareness about these laws if not an expert knowledge
of the same. With this in mind, below isgiventhe summarized
guidelines of the different laws of which the business owners should
be aware.

The Factories Act, 1948

Objectives: The main objectives of the factories Act, 1948 are two,
first, it aims at to ensure adequate safety measures and promote the
health and welfare of the workers employed in the factories. Second,
it prevents haphazard growth of factories through the various
provisions relating to the final approval of the project plant before a
factory is actually created.

ScopeandCoverage: The act has a quite wide scope and coverage

of all, aspects relating to factories in the country. These are the
regulation of proper working conditions, ensuring the basic
minimum requirements for safety, welfare, working hours, annual
leaves of worker, covering all categories of workers working in the
factory and applicable to all factories using power employing10 or
more workers and employing or more workers without using power
on any day of the preceding 12 months.
The Industrial Disputes Act, 1947

Objectives: The main objectives of this Act are to provide

machinery for peaceful establishment of workers’ committees to
promote cordial and harmonious relations between the employers
and the workers. The act also aims at to inquire into any matter
connected with an industrial dispute, to refer individual disputes to
grievance settlement authority, to prevent illegal strikes and
lockouts; to prevent unfair labour practices and to provide for the
payment of wages from date of award till final decision in the court.
Scope and Coverage: - The Act applies to all industrial and
commercial establishment employing one or more workers but it
does not apply to those who are employed in administrative and
managerial capacities.

The Minimum Wages Act, 1948

Objectives: The main object of the Act to determine the minimum

wages in the certain employment in the industry and trade where
labour organizations like trade unions are either non-existent or
ineffective.

Scope and Coverage: The Act is applicable to all employees

engaged to do any work whether skilled or unskilled, manual or
clerical in a scheduled employment including outgoing workers,
fixation of minimum wages, etc.

The Employees’ Providend Fund act, 1952

Objectives: - The objectives of the Act as a piece welfare
legislation is to make provisions for the security in old age after the
employee retires or for his dependents in the case of his early death.

Scope and coverage: The Act covers all factories and

establishments employing 20 or more employees, all persons
employed directly or indirectly through contractors in any kind of
work. The Act can be applicable to the Central Government
establishments employing less than 20 workers if the majority of the
workers so desire.

Main Provisions: The main provisions of the Act relate to the

contributions towards employees’ providend fund by the employees
and the employer.

The shops and Establishment Act

Objectives: This Act is passed with an objective to provide

statutory obligations and rights to employees and employers in the
shops and establishments, i.e., the major segment of unorganized
sector in the country.

Scope and Coverage: As regards the scope of this Act, it has all
India coverage. Of course, every State has framed its own rules for
the application of the Act.TheAct is applicable to all persons
employed in or about a scope or an establishment with or without
wages. However, the employers’ family members, if any, do not
come within the purview of this Act.

The workmen’s Compensation Act, 1923

Objectives: The Act aims at securing the payment of compensation
by employers for injuries sustained by an employee in an accident
occurred either in the course of or out of employment.

Scope and coverage: This Act is applicable to all over India to

factories, mines, plantations, transport establishments and
construction works. However, the Act does not apply to those
establishments, which are not covered by the employees’ State
Insurance Act. It is also not applicable to casual workers working in
the factories.
 POLICIES

POLICIES ARE AS UNDER: -

Wages.

Leave.

Payment for overtimes.

Payment of bonus.

Employee welfare.

Health and hygiene condition.

Compensation.

All other disputes to settled in court.

 ROLE OF FINANCE
Finance is the blood of business that’s why the finance function
assumes more significance because it plays important
role in successful performance of all operation &
managerial function though there are other basic
function also like production, marketing etc.

The industrial development of the last 60 years or so has made

finance management an indispensable part of business management.

“A firm’s success & even survival, its ability and willingness to

maintain production and to invest in fixed or working capital are to
a very considerable extent determined by its financial policies, both
past and present,”in fact, the financial manager is now being placed
at central focal point of modern corporate organization changes &
revolutionary changes in financial management. In addition to Ezra
Solomon,
“Financial management is properly viewed as an part of
overall management rather than as a staff specially concerned with
fund raising operations. In addition to raising funds, financial
management is directly concerned with production, marketing &
other functions within an enterprise whenever decisions are made
about the acquisition or distribution of asset.”

It is often said that now a days, financial mgt. Watches & cases
various development activities affecting liquidity & profitability of
the firm. Few activities to be cased for:-

High cost of financing the risky investment due to capital-

intensive environment.

High rates of inflation affective firm are forecast and planning.

 Diversification by the firm of various business markets and
products.

Last but not least, the sound finance decision not only
affects the production and distribution but also affect the factory
profitability and liquidity.

FORM OF FINANCE:

Because we are working in a co-operative form of business

ownership, then the form of investment is also co-operative. No loan
is required because all the investment is in co-operative form.

SURPLUS SHARING RATIO:

On the basis of the capital invested the SDI CO-OPERATIVE
have decided to surplus the ratio of 1:1:1:1:1.we will try to
maintain current ratio as 2:1.
Surplus sharing ratio is depending on the basis of the profit of the
factory. Surplus sharing ratio is the amount, which include only the
net profit of the factory.
The investment is on the raw product, on
machinery, on wages, on labour, on packing, on tools, on electricity,
on entertainment, on publicity of the product etc.

BALANCE SHEET:
All the liabilities and assets of the factory are shown in balance
sheet at the last of the year ending 31st march.

AUDITING:
The audit is done by a C.A. All the information of sales and
purchase, cash& cheque are included in this sheet. The C.A.
approved this sheet by his /her authority. Then this approved sheet is
transfer to the income tax department for the tax according to the
income.

SALARY OF THE WORKER:

The salary of the workers is on the basis of the placement. There are
many jobs in the factory and every person can not do every work. A
broad-minded worker does the weighing work.
Every year 10% of the salary is increased. The special package of
the gift is given to the workers occasionally.
The salary of the finance manager& the supervisor, mechenic is
7000 Rs./month
There are also some workers in the factory on the daily basis.

RETIREMENT:
There is not any specific rule of the retirement. A worker can leave
any time but for this he or she will have to inform the owner of the
factory before the 8 days.
 BRANDING AND
PACKAGING
BRANDING:
The word ‘branding’ has its origin to the word ‘brand’. A brand is a
name, word, symbol or a mark used to identify a product and to
differentiate it from the competitive products.
According to American marketing association:
“A brand is a name, term, sign, symbol, or design, or a combination
of them, intended to identify the goods or services of one seller or
group of sellers and to differentiate them from those of
competitors.”
Branding is a process of assigning a distinct name to the product so
as to differentiate it from the competitive products of similar nature.
If the brand is given a name, it is called ‘brand name’. Examples of
brand names are Colgate toothpaste, liril soap, godrej refrigerator
etc. in order to have a unique identity amongst the competing
products; each brand is assigned a mark called ‘brand mark’. A
brand mark is a symbol or mark used for the purpose of
identification of the product.
When the brand name is registered under the trade and
merchantile marks act, 1958, it is called ‘trade mark’. A trademark
is the legalized version of a brand. Trademark is R
shown by
displaying the letter R enclosed in a circle, shown as R

LAXMI BRAND MASALA

Packaging:
Packaging is considered as an important element of product mix.
Some markets even consider it as a ‘fifth P’along with product,
price, promotion and physical distribution. Packaging has been
variously defined. One of the most quoted definitions is “packaging
is the art, science and technology of preparing goods for transport
and sale.” Thus, packaging has two salient aspects: (1) it helps in the
physical distribution/ transportation and sale of the products; (2) it
performs the functions of selecting package design and packaging
material. In other words, packaging means the activities of
designing and producting the container or wrapper for a product.
The container or wrapper is called the ‘package’.

LAXMI
BRAND
MASALA
PACKAGE
OF
HALDI MIRCH DHANIA MASALA
500 gm.

MARKETING STRATEGY
The strategy of marketing is through various sources, these are:

Local newspaper: the factory gives the advertisement in the

local and outer newspaper. The information of the product is given
in this and the name and brand of the product is also included in
this.
Radio: it is another audio source of advertisement. With the help of
radio the quality, name and brand of the product is reach to the
persons.

Pamphlets: it is video aid of advertising the product. The brand

name, product qualities, price and factory name and address are
given on this and these are distributed in the main and crowdy areas
of the city.

Billboards: it is a type of video advertising. In this all information

related to the product is written by marker or paint and these are
hold on poles of the roads from both sides of the road.

CHANNELS OF DISTRIBUTION:

THROUGH RETAILER
 PROCEDURE FOR
REGISTRATION OF TRADE
MARK
A trademark is a visual symbol, which applied to goods, or
merchandise and the mark may consist of a device (like lion or
butter fly) or a word like (binaca or dalda) or letters like (KDEF or
ISI) or numerals (like 501) or a combination of such features. The
mark is applied to all saleable goods with a view to indicate to the
purchaser that the goods emanate from a particular source (i.e. from
the owner, the said owner of the mark be an actual manufacturer, or
a mere seller or other type of dealer). Whether the public knows the
exact owner of the mark or not, the trade mark serves as a strong
medium of advertising good and the goods become popular under
the mark. Once the mark attains popularity, it becomes the most
valuable mark in the industrial property.
For the registration of small-scale industry the owner have to
contact to the DIC of respective district.
 CONCLUSION
We have decided to establish SDI CO-OPERATIVE dealing in
production of MASALA and brand name as ‘LAXMI BRAND
MASALA’.
The total investment of our co-operative is 25 lakh. The raw
material used for the production is dry masala, which are purchased
from Lucknow Delhi and other near by local areas.

If we take 1 quintal of raw product then we get 80 kg. Ready

product. The total manufacturing cost of the product is 25Rs/kg
of coriander powder, 30 Rs./kg. Of turmeric powder, and 45
Rs./kg of red chilly powder. The total selling cost of the product
is 40 Rs. /kg of coriander powder, 50 Rs. /kg of turmeric
powder, 75 Rs. /kg of red chilly powder. The total profit of the
co-operative is 35% of the investment.
 APPENDIX

For getting the awareness about the masala we get some information
from the housewives through telephonic interview and by
questionnaire. The sample of the questionnaire is as follows:

QUESTIONNAIRE
Name………………………………………………………………
Age………………………………………………………………...
Sex…………………………………………………………………
Address……………………………………………………………
Phone no…………………………………………………………..

Q. What type of masala do you prefer?

Hand made Ready-made masala

Q. If you use readymade masala then which brand?

Ashok masala MDH masala

Everest masala Goldie masala

Q. If your favorite brand is not available then will u may switch on

to other substitute?
Yes No

Q. What thing you prefer whole purchasing a masala?

Quality Quantity
Taste Colour

Cost
Q. From how many years you are using this brand?

Q. If we will launch a new brand of masala then will you prefer it

for using?
Yes No

THANKING YOU

TELEPHONIC INTERVIEW
Q. What is your name?
Q. Where do you live?
Q. Which type of masala do you use in cooking? Readymade or
home made
Q. Which brand of masala do you use?
Q. From how many years you are using it?
Q. Would you like to use a new brand masala?
Q. What is the best feature of the brand you are using?

Thanking you.