141, GOVERNMENT POLYTECHNIC COLLEGE
KADATHUR-635303
DEPARTMENT OF
COMPUTER ENGINEERING
FY -2023
BUSINESS PLAN ON SEMI AUTOMATIC LATHE MACHING JOBS
Submitted by
S.NO
REGISTER NO.
NAME OF THE STUDENT
1
2
3
4
5
COMPUTER ENGINEERING, 141 GOVERNMENT POLYTECHNIC COLLEGE,
KADATHUR-635303.
1
BUSINESS PLAN NON-DISCLOSURE AGREEMENT
This BUSINESS PLAN NON-DISCLOSURE AGREEMENT (hereinafter known as the “Agreement”)
between
(hereinafter known as the “Company”) and
(hereinafter known as the “Recipient”) becomes effective as of this
day of
, 20
(hereinafter known as the “Effective Date”).
Article I: Recitals
The Company wishes to share their business plan (hereinafter known as the “Business Plan”) with the
Recipient for the purposes of review, examination, inspection or contribution, while maintaining
confidentiality. The Company and the Recipient, collectively known as the “Parties”, understand and
agree that dissemination of information or materials within or related to the Business Plan would be
detrimental to the integrity of the Company. For the purposes of this Agreement, all information,
strategies, plans, trade secrets, objectives and materials will be referred to as “Confidential Information”,
and the Company may share Confidential Information with the Recipient subject to the terms and
covenants set forth below.
Article II: Recipient Obligations
A. Non-Disclosure. The Recipient understands and agrees to not use or disclose the Business Plan or
Confidential Information for personal benefit or the benefit of any other person, corporation, association,
company or entity, and shall take all steps necessary to protect Confidential Information from disclosure.
The Recipient further agrees not to disclose the fact that the Business Plan has been made available, that
discussions or negotiations are taking place or have taken place, or any of the terms, conditions or other
facts with respect to the transaction. Methods of disclosure include, but are not limited to, written, oral,
electronic or any other form of recording.
B. Disclosure. The Recipient shall only disclose the Business Plan and Confidential Information to
persons within their organization on a need-to-know basis. Each person who becomes privy to the
Confidential Information shall be bound by the provisions within this Agreement. This Agreement shall
survive and continue after any expiration or termination of this Agreement and shall bind Recipient, its
employees, agents, representatives, successors, heirs and assigns.
C. Exceptions. The Recipient is not prohibited from using or disclosing the Business Plan or
Confidential Information if
(i) it was publicly known;
(ii) it was in the Recipient’s possession before the Effective Date;
(iii) it was used in response to any legal obligation; or
(iv) it was approved for release in writing by the Company.
D. Legal Obligation. The Recipient is permitted to disclose Confidential Information if compelled to do
so by legal request, deposition, subpoena, civil investigative demand or similar process. In such an
event, the Recipient agrees, if legally permissible, to promptly notify the Company of such request, to
consult with the Company on the advisability of taking legally available steps to resist or narrow such
request and to assist the Company in seeking an injunctive or other protective remedy. Both Parties
2
understand and agree that the Recipient shall execute the aforementioned pre-disclosure measures only if
the action does not violate any applicable laws. Should the Company fail to obtain a protective order or
waive compliance with the provisions hereof, the Company shall not hold the Recipient liable for
disclosure of Confidential Information.
Company
Representative Signature:
Representative Printed Name:
Date:
Representative Title:
Recipient
Recipient Signature:
Date:
In charge
HOD
Internal Examiner
External Examiner
3
SCOPE OF THE REPORT
The following report includes business plan on semi automatic lathe machining jobs unit
establishment expenses ,debt, loan calculation and profit projections . This case have been researched
and selected to show the understanding of entrepreneur ship concept which describes the new product
development, various elements of cost, pricing strategy, marketing research,etc.It involves the
exploitation of opportunities, which exist within a market. Such exploitation is most commonly
associated with the direction and/or combination of productive inputs. It helps us to organize the
business of our own and to run it profitably, using all the qualities of leadership, decisions making and
managerial caliber etc. This business plan case is relevant for talent management and knowledge
transfer at all levels of career throughout the journey of entrepreneurship. It aims on economic
development and business seeking to increase innovation through entrepreneurship.
4
TABLE OF CONTENTS
Chapter No
Title
Page No
TITLE
1
BUSINESS PLAN NON DISCLOSURE
2
SCOPE
4
TABLE OF CONTENTS
5
INTRODUCTION
7
1.1
PROFILE OF THE ENTREPRENEUR
7
1.2
NATURE OF BUSINESS
7
1.3
FINANCIAL REQUIREMENT
7
EXECUTIVE SUMMARY
8
2.1
PROBLEM STATEMENT
8
2.2
PROPOSED SOLUTION
8
2.3
VALUES
8
2.4
FINANCIAL THOUGHTS AND NEXT STEP
9
2.5
MISSION STATEMENT
9
2.6
VISION STATEMENT
9
MARKET ANALYSIS
9
3.1
FUTURE OUTLOOK AND TRENDS
9
3.2
COMPETITOR ANALYSIS
9
3.3
INDUSTRY AND MARKET FORECAST
10
1
2
3
5
3.4
SWOT ANALYSIS ON PLASTC BAN
11
BUSINESS DESCRIPTION
12
4.1
PRODUCT
12
4.2
SIZE OF BUSINESS
12
4.3
OFFICE EQUIPMENT AND PERSONNEL
12
PRODUCTION PLAN
13
5.1
MANUFACTURING PROCESS
13
5.2
MACHINERY EQUIPMENT
13
5.3
NAME OF SUPPLIERS
13
MARKETING PLAN
14
6.1
PRICING
14
6.2
DISTRIBUTION
15
6.3
BANK LINKAGE DETAILS
15
FINANCIAL PLAN
15
7.1
COST OF CAPITAL ASSETS
17
7.2
BASICS & PRESUMPTIONS
17
7.3
ASSESSMENT OF WORKING CAPITAL
17
7.4
PROFITABILITY PROJECTIONS
18
7.5
LOAN REPAYMENT
19
4
5
6
7
6
1. INTRODUCTION :
PROFILE OF THE ENTREPRENEUR :
Name
Vikaramathithan
Age
19
Diploma
Education
Aadhaar Card No
796957859160
Address
S/O Mani Bandarasettipatti (vill) Pappireddipatti
(tk) Dharmapuri (dt) tamilnadu -635301
+91 8489472273
Mobile No
Number of years of experience in business
6 Years
Trainings attended (no. and hours)
MS basic tools,7 QC tools
If Special category
No
NATURE OF BUSINESS :
Type of Enterprise
Production/Service
Product
Machining jobs
Enterprise name
iMATE ENG pvt.Ltd
FINANCIAL REQUIREMENT:
Business Finance means the funds and credit employed in the business. Finance is the
foundation of a business. Finance requirements are to purchase assets, goods, raw materials and for the
other flow of economic activities
Cost of working capital for one operating cycle
a) raw-materials,
b) Semi-finished goods,
c) finished goods,
d) receivables outstanding.
Total working capital needs (The value of raw- materials, semi-finished goods, finished goods,
receivables outstanding to be arrived
The working capital requirement is arrived at Rs.36800
Fixed capital-Cost of all the equipment’s /machinery/construction Rs. 2649000
The income statement, balance sheet, and statement of cash flows are required financial
statements. These three statements are informative tools that traders can use to analyze a company's
financial strength and provide a quick picture of a company's financial health and underlying value.
7
2. EXECUTIVE SUMMARY :
PROBLEM STATEMENT :
 Most of the engineering components such as gears, bearings, clutches, tools, screws and
nuts etc. need dimensional and form accuracy and good surface finish for serving their
purposes.
 Preforming like casting, forging etc. generally cannot provide the desired accuracy and
finish. For that such preformed parts, called blanks, need semi-finishing and finishing and it
is done by machining
PROPOSED SOLUTION :



Semi auto Machining is more cost effective. Traditional machining requires one operator
per machine.
This type of machining requires fewer machine operators since one skilled operator can
run several machines at one time.
Since the This is so accurate it reduces errors from the manufacturing process and
eliminates unnecessary waste.
VALUES :

The change is always inevitable which tends to compete in the global market.The 12 core values
of our business












HONESTY
INTEGRITY
PROMISE-KEEPING
LOYALTY
FAIRNESS
CARING
RESPECT FOR OTHERS
LAW ABIDING
COMMITMENT TO EXCELLENCE
LEADERSHIP
REPUTATION AND MORALE
ACCOUNTABILITY.
8
FINAL THOUGHTS AND NEXT STEPS:
Market volume target (Rs)
Manufacturing of these machined items is required in
7
6
future
5
The present scenario of these items demand will be
increased by 10-25% in the future
4
3
2
1
0
Y1
Y3
Y2
Sales (Lakhs)
Y4
MISSION STATEMENT:
A Mission statement is defined as an action-based statement that declares the purpose of an
organization and how they serve their customers
“ We aim to provide solutions to satisfy our customer’s need by providing them Quality,
flexible yet affordable products, delivered on time.”
2.6 .VISION STATEMENT:
A vision statement is a business document that states the current and future objectives of an
organization
“To be the leading manufacturer of corporate giveaway bags in the Tamilnadu”
3. MARKET ANALYSIS :
FUTURE OUTLOOK AND TRENDS:
Being equal parts operational and creative problem solving, CNC programmers are
crucial to today's manufacturing and according to the US Bureau of Labor Statistics, demand for this role
is expected to increase by up to 16% by 2026 .E-commerce shows steady post-pandemic growth. ...


Businesses continue to utilize social media. ...
Big data gets bigger. ...

Revamping human resources.
COMPETITOR ANALYSIS:
A competitive analysis is a strategy that involves researching major competitors to gain insight
into their products, sales, and marketing tactics. Implementing stronger business strategies, warding off
9
competitors, and capturing market share are just a few benefits of conducting a competitive market
analysis.
Competitive market research focuses on finding and comparing key market metrics that help
identify differences between products and services and those of our competitors.
Comprehensive market research helps establish the foundation for an effective sales and
marketing strategy that helps our company stand out from the crowd.This helps us to

Identify gaps in the market

Develop new products and services

Uncover market trends

Market and sell more effectively
Some major competitor in the manufacturing are

Shree Kanniyamman Engg .Ltd.

SREE RANGA Engg.Ltd.

Sri Rajeshwari Engg.Ltd.

South Street Engg.Ltd

Namakkal Engg.Ltd


INDUSTRY AND MARKET FORECAST :
A market forecast is a core component of a market analysis. It projects the future numbers,
characteristics, and trends in our target market.
There are four steps in any total-market forecast:
1. Define the market.
2. Divide total industry demand into its main components.
3. Forecast the drivers of demand in each segment and project how they are likely to change.
4. Conduct sensitivity analyses to understand the most critical assumptions and to gauge risks to the
baseline forecast.
This graph shows that the future demand aiming on semi auto machines machining job requirement
10
SWOT analysis on flour mill :
SWOT analysis plays the major role in determining the demand for thr product in the market
which could help us to enrich our product
SWOT analysis plays the major role in determining the demand for the product in the market
which could help us to enrich our product
Strength :
1. CNC machines can be used continuously 24 hours a day, 365 days a year and only need to be switched
off for occasional maintenance.
2. CNC machi nes are programmed with a design which can then be manufactured hundreds or even
thousands of times. Each manufactured product will be exactly the same.
3. Less skilled/trained people can operate CNCs unlike manual lathes / milling machines etc.. which need
skilled engineers.
4. CNC machines can be updated by improving the software used to drive the machines
Weakness:
1. NC machines are more expensive than manually operated machines, although costs are slowly coming
down.
2. The CNC machine operator only needs basic training and skills, enough to supervise several machines.
In years gone by, engineers needed years of training to operate centre lathes, milling machines and other
manually operated machines. This means many of the old skills are been lost.
3. Less workers are required to operate CNC machines compared to manually operated machines.
Investment in CNC machines can lead to unemployment.
11
4. BUSINESS DESCRIPTION :
PRODUCT:
Machining jobs
SIZE OF BUSINESS:
This plant is the integrated plant processing from raw material to conversion at single site . This
unit is having the capacity of producing 1000 jobs /Month
This unit is aiming to increase its price by 5 Rs per piece on yearly basis without modifying the
capacity of production
OFFICE EQUIPMENT AND PERSONNEL :
a. Location – Brief on Location – Whether well
connected to market by road etc.,

The unit is easily approachable and
well connected by roads
b. Land - Extent of Land, sq.ft

Own land.
c. Building

Own building available
d. Power

Power supply is available.
e. Water

Adequate water supply is available.
g. Materials Needed
Quantity / Cost / Availability / Delivery Time to be
discussed.
a. Raw materials
b. Equipment
c. Technology

Raw-materials
The working capital requirement
is arrived at Rs.240000
h. Skills Requirements:
Skilled labour available / Not available.If not available,
whether people can be trained? If so, training period
and training facility?
The applicant is having adequate
experience. Skilled experienced
workers are also available in the
area
The unit require two skilled
persons
12
5. PRODUCTION PLAN :
MANUFACTURING PROCESS :

The most common lathe operations are turning, facing, grooving, parting, threading, drilling,
boring, knurling, and tapping,etc.
MACHINERY AND EQUIPMENT
S.No
1
Description of the Item
Lathe machine
2
Tools
3
Lathe machine accessories equipment
4
Coolant and other materials
NAME OF SUPPLIERS:
The suppliers are

Sasi CNC machines

utta Engg solutions

LMW

MST Engg works
Supplier Rating System enables companies to make informed supply decisions that are optimal for the
entire business. These decisions can include identifying the best supplier to select for a specific contract
or determining entirely new supply strategies, such as which product areas would benefit from an
expanded supplier base or consolidation of existing suppliers.The supplier rating system for the key
suppliers is done based on the below categories:

Reduce purchasing cost.

Reduce lead-time variability.

Improve invoice accuracy.

Improve supplier quality.

Provide buyer feedback ratings.

Provide supplier financial ratings.
13
Supplier name

Index rating
Sasi CNC
machines
95
utta Engg
solutions
92
LMW
87
MST Engg works
93
* The supplier rating >85 is mandatopry for selection of supplier
All the suppliers are ISO2015 certified and prone to the clauses specified in respectively.
6. MARKETING PLAN
PRICING
Baked into pricing are indicators to our potential customers about how much we value our brand, product,
and customers. It's one of the first things that can push a customer towards, or away from, buying our
product. As such, it should be calculated with certainty.
There are different pricing strategies to choose from but some of the more common ones include:

Value-based pricing

Competitive pricing

Price skimming

Cost-plus pricing

Penetration pricing

Economy pricing

Dynamic pricing
The unit cost of the items machining = Rs. 40
The unit price of the job will be increased by Rs.5per annum is taken as assumption to estimate the future
growth
14
DISTRIBUTION :
Companies that make products use a distribution strategy to get them to the consumer
market, and there are several types and forms to choose from. Knowing more about distribution strategies
and the benefits of each can help you create the strategy . Depending on the type of product or service
you offer, your distribution strategy may vary

Routine: A routine purchase is typically a low-cost item or service a customer chooses quickly,
like gum, soda and paper products

Limited: A limited purchase is a moderately priced item a customer spends more time selecting
than a routine purchase, like a refrigerator, couch or computer

Extensive: An extensive purchase is often an expensive item a customer intensively thinks about
before buying, like a vehicle, house or college education
Transportation is done through roadways
Here the distribution type – Routine
BANK LINKAGE DETAILS:
Whether the enterprise has separate bank
account
Yes
If any bank credit availed
No
Name of the bank
Bank branch
SBI
Kadathur
a.Through Online: online
Bulk orders of production units located in the
district
facility through NEFT/IMPS
7. FINANCIAL PLAN:
One of the biggest challenges of starting a new business is making sure we’ll have enough money
to see us through the challenging first months.Without adequate financial resources, our business will
have a hard time finding its footing. Entrepreneurs also need to be realistic about how long it will take for
revenues to catch up to costs
A good financial plan contains seven key components:




Budgeting and taxes.
Managing liquidity, or ready access to cash.
Financing large purchases.
Managing your risk.
15



Investing your money.
Planning for retirement and the transfer of your wealth.
Communication and record keeping.
8.Financial Viability
Cost of the project and Means of the project:
a. Cost of the Project:
(Rs)
I. Fixed capital-Cost of all the equipment’s /machinery
2649000
/construction(excluding land cost) (Refer Annexure – A)
ii. Working capital (Refer Annexure – C)
36800
iii. Pre-operative expenses
Nil
Total cost of the project (i + ii + iii)
2685800
b. Means of the project:
Loan from financial Institution / Bank (95% or 90%):
2417220
Margin money -Borrower’s contribution (5% or 10%):
268580
Total means of the project ( i + ii )
2685800
c. Matching grant from the project**
725166
Whether the entrepreneur has the sufficient means to
bring in the margin money and has enough buffer to manage any
cost escalations
Yes
**Matching Grant is @30% of the total cost of the project (excluding pre-operative
expenses, land cost, lease). As Matching Grant will be kept in a “Subsidy Reserve Fund”
account of the bank as a back-ended grant, it is not shown under the Means of the project.
The matching grant to be adjusted as below:
(Rs)
Loan initially disbursed by the Bank
- Rs.2600000
Less 30% matching grant
Rs.725166 Balance principal amount
to be repaid by
Borrower – Rs. 1692054
Upon completion of minimum period of 18 months and upon repayment of principal
16
amount of Rs. 1692054 and the interest portion, the matching grant of Rs. 725166 can be
adjusted to the loan account of the borrower and the loan account can be closed.
COST OF CAPITAL ASSETS :
SL.NO
Description of the Item
1
Lathe machine
2
Tools
4
5
Size/No
1
Unit cost (Rs)
Price ( Rs)
2600000
2600000
25
1000
25000
Lathe machine establishment charges
2
8000
16000
Coolant and other charges
1
8000
8000
Total
2649000
BASIS & PRESUMPTIONS
Salary per worker
Rs.5000 per month
No. of jobs machined
1000
Electricity expenses per month
Rs.1000
Water Charges per month
Rs.300
Repairs @ maintenance
Rs.500
Fuel/Conveyance expenditure per month
Rs.500
ASSESSMENT OF WORKING CAPITAL
S.No.
Item of expenditure per month
1
Salary to two high skilled worker @Rs.10000/worker
2
Electricity charges
3
Water Charges
4
Raw material charges
5
Other expenditure( Fuel/Conveyance/Repairs &
Value (Rs )
20000
1000
300
14000
1500
Maintenance)
Working Capital for One operating cycle of 30 days
PROFITABILITY PROJECTIONS
17
36800
PROFITA
BILITY
PROJECTI
ONS
Particulars
Yr 1
Yr2
Yr 3
Yr4
Yr5
(Amount in Rupees)
a. Sales
No. of jobs to be machined (1000/month)
month
12000
12000
12000
12000
12000
Charge per job
40
45
50
55
60
Total income
collected
b. Recurring Expenditure
480000
540000
600000
660000
720000
Salary to 2 skilled workers @ Rs.5000/Worker
120000
130000
140000
150000
160000
Electricity Charges @ Rs.1000 per month
Water Charges @ Rs.200 per month
12000
13000
2400 2600
14000
2800
15000
3000
16000
3200
Raw material charges
14000
15000
16000
17000
18000
Other expenses ( Oil/Lubricant,)
Repairs Conveyance) @ Rs.1500 per month )
Total (b)
Gross Profit(a-b) = c
Depreciation @5% on working shed & 10 %
equipment’s (d)
Interest ( e )
18000
20000
22000
24000
26000
166400 180600 194800 209000 223200
313600 359400 405200 451000 496800
8500
8500 8500
8500
8500
160534
104696 48858
3878
0
Tax on profit(f)
Sub Total (g )=d+e+f)
0
169034
0 0
113196 57358
0
12378
0
8500
Cost of sales (b+g) = h
Net Profit after tax (a-h) = i
335434
144566
Principal Repayment(k)
Interest on Loan(l)
Repayment obligation(D)
293796 252158 221378 231700
246204 347842 438622 488300
507616.2 507616.2 507616.2 169205.4
160534 104696
48858
3878
668150 612312 556474 173083
LOAN REPAYMENT
18
0
0
0
Loan Amount – Rs.2417220
Interest Rate-11%
Repayment period – 40 months
Debit
Credit
Balance
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
2417220
2374919
2332617
2290316
2248015
2205713
2163412
2121111
2078809
2036508
1994207
1951905
1909604
1867302
1825001
1782700
1740398
1698097
1655796
1613494
1571193
1528892
1486590
1444289
1401988
1359686
1317385
1275084
1232782
1190481
1148180
1105878
1063577
2417220
Interest Interest
Net
on Net
Per
Principal
Loan
Loan
annum
repayment
1692054
1649753
15510
1607451
15123
1565150
14735
1522849
14347
1480547
13959
1438246
13572
1395945
13184
1353643
12796
1311342
12408
1269041
12021
1226739
11633
1184438
11245
160534
507616.2
1142136
10857
1099835
10470
1057534
10082
1015232
9694
972931
9306
930629.7
8919
888328.3
8531
846027
8143
803725.6
7755
761424.3
7367
719122.9
6980
676821.6
6592
104696
507616.2
634520.2
6204
592218.9
5816
549917.5
5429
507616.2
5041
465314.8
4653
423013.5
4265
380712.1
3878
338410.8
3490
19
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
42301.35
1021275
978974.1
936672.7
894371.4
852070
809768.7
767467.3
725166
0
296109.4
253808.1
211506.7
169205.4
126904
84602.7
42301.35
-1E-09
3102
2714
2327
1939
48858
1551
1163
776
388
0
3878
0 317965.1
20
507616.2
169205.4
1692054