PROFILE

FOR SETTING UP OF
WHOLE SALE DISTRIBUTION OF HARDWARE ITEMS

PROMOTED BY

BRIGHT LINES
AT

NARUKARA,MANJERI,

MALAPPURAM, KERALA - 676122

 THIS REPORT
IS TO STUDY THE ECONOMIC AND
TECHNICAL FEASIBILITY OF THE
PROJECT

BRIGHT LINES

PROMOTED BY
MR. ALI AKBAR THAYYIL
INTRODCTION

Indian hardware store industry comprises stores that sell a wide spectrum of home
maintenance and repairs items such as electrical goods, hardware, and a variety of
tools & equipments. Hardware stores also often sell structural material and
different forms of lumber for any home repairs, renovations, or construction. Those
involved in the hardware store industry typically buy product from manufacturers
and wholesalers, and then proceed to retail the goods to retails stores, independent
consumers as well as professional contractors.

There are an assortment of factors that drive demand and profits for this industry:
re-modelling and repair of houses and buildings , construction, hardware retailing,
new home building, and telecommunications all require products retailed in this
industry. Overall revenue depends on efficient management of a company’s
inventory, as well as use of effective advertising strategies.

Large companies have an advantage in that their distribution networks are

expansive, and as such they can provide consumers with a wide selection of
products and services. Smaller businesses prioritize providing specialty items,
stocking products they know their consumers need, and providing excellent
customer service. Individual operators rely on obtaining quality products at a
lower cost, strategic merchandising, and competitive prices.

PROMOTER:-

The chief promoters of M/s Bright Lines is Mr. Ali Akbar Thayyil .

Mr. Ali Akbar Thayyil, the promoter, (aged 42) hails from the land of Feroke,
Calicut. He was born to Mr. Ali Koya and Mrs……………... He Started his
carrier……………………………..
The promoter of the project being a technocrat in Hardware industry with more
than 15 years of experience has conceived the idea of starting of new
wholesale hardware store in this scenario.

Since the promoter is having about 15 year’s experience in the Hardware

industry, the successful implementation and running of the project is very
easy and promoter does not envisage any technical or marketing
hindrances.

The promoter’s experience in the industry is more than enough to procure

sufficient orders for the unit.

LOCATION

The location of the proposed project is by the side of the Narukara, in the
limits of Manjeri Municipality. It is located about 3 Km away from the Manjeri
Town

Location Details:
1. Location
(a) Area Narukara
(b) District Malappuram
(c) State Kerala

MARKET ANALYSIS

As mentioned earlier, the Hardware Store is located in a very potential area

and already there is assured business to generate reasonable profit .
COMPETITION

Since this is not a seasonal business, steady sales is expected through out the
year and moreover as the economic activities increases day by day, the
demand for Hardware items are increasing proportionately.

OPERATIONS OF BRIGHT LINES

The two basic functions of any business enterprise have often been defined as
marketing and selling.

The effectiveness of a firm depends on its ability to compete through the skill in
marketing a product.

Promoter has expecting following kind of hardware materials for their day to
day trading cycle.

 Nails,
 Water Paper,
 Musking Tap,
 Roller Handle,
 Plastic Flexible Wire,
 Plastic Flexible Pipe,
 Cutting Wheels,
 Screws,
 Rivet,
 Angle Bolt,
 Hand Saw,
 Marble Blade,
 Spaner,
 Wood Cutter,
 Pad Lock,
 Tower Bolt,
 Roller Brush,
 Flat Brush,
 Putty Blade,
 Bits

The above said purchases are to be planned from the following

entities:-

 Abbrasives & Tools India, Mariappanstreet Tamilnadu

 Alapatt Enterprises, Cochin
 Chennai Tools Corporation, Chennai
 Classic Decorating Tools, Kunnamkulam
 Genaral Tools, Mmbuilingcheroottyroad ,Calicut
 Jsk Industries, Kochi
 Manoj Agencies, Coimbature
 Mas Marketing , Calicut
 N N Trdeers, Thrissur
 Obalco Industrials, Vatakara -
 Rajguru Adhesive Tap Co. P Ltd, Chennai
 Sand N Fin Trading Co., Eranakulam -
 Sri Balaji Enterprises, Chennai-
 Tem Tech Engineering Co, Thumbappada

The Distribution channel are proposed to be the following entities

 Aeepee Traders, Calicut

 Al Hilal Steels &Hardware, Kuttyadi
 Alpha Trading, Naduvannor
 Bharat Obalco, Vatakara
 Bharath Glass, Mahe
 Color Mart, Perumanna
 Delta Traders, Perambra
 Five In One Electricals, Vatakara
 Galaxy Tools, Mahe
 Grand Associates, Pallur -
  Hira Glass Plywood & Locks, Keezhuparamb
 Indian Electrical & Plumping, Padikkal
 J P S Paint Hardware, Malappuram
 Jaz Elctricales&Plumbing, Payyoliangadi
 Jps Paints&Hardware, Silverlandbiulding -Kannur
 K T M Steel, Thalassery
 K.M.Paints, Kasaragod
 Kalathingal Furniture, Kunnamkulam
 Kanniyath Traders, Thalassery
 Kolar Mill Stores, Manjeri
 Korambayil Metals & Paint, Manjeri
 Lamda Steel, Mukkam
 M K Electrickals, Payyannur

PROPOSED INVESTMENTS

The proposed firms total project cost comes to Rs. 10 Lakhs which proposed to
be financed as follows:-

Promoters Contribution 2 Lakh

Loan Fund 8 Lakh
TOTAL 10 Lakh

The promoters propose to avail a term loan of Rs.8 Lakh from financial
institutions which comes to about 80% of the project cost.

The Project has an estimated implementation period of 12 months and is

expected to be completed towards the end of the year 2020.
OPERATING PROJECTIONS AND FINANCIAL
INDICES

The Projected operating statements given as annexure explains the commercial

viability of the project. The estimated turnovers during the first three years of
operation are as follows:-

YEAR Amount in Lakhs (Rs)

First Year ……..
Second Year ……..
Third Year ……..

Based on the through market study and various assumption of the proposed
investment, the projected Balance Sheet and Profit & Loss Account for the
next 2 years are prepared and attached.

CONCLUSION

To conclude the Hardware store is a economically and financially viable project

and even after providing sufficient cushioning a good margin of profit is
available from operations. Based on the Assumptions adopted in this report the
proposal is technically feasible, and economically viable and financially sound
and warrants favorable consideration from the financial institutions.

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