A STUDY TO ASSESS THE FINANCIAL FEASIBILITY OF SETTING UP A PLASTIC FOOD CONTAINER PLANT BY KK INDUSTRIES, BANGALORE SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF BACHELOR OF BUSINESS MANAGEMENT DEGREE COURSE OF BANGALORE UNIVERSITY
By M R KAUSHIK Reg. No. 08KXC08077
Under The Guidance of Mrs. Mini K Abraham HOD – COMMERCE
SURANA COLLEGE OF ARTS, SCIENCE, COMMERCE AND MANAGEMENT South End Road Bangalore – 560004 2010 – 11 SURANA COLLEGE 1
I hereby declare that the project titled “A study to assess the Financial Feasibility of setting up a Plastic Food Container Plant by KK Industries in Bangalore” has been prepared by me during the year 2010-2011 under the
guidance of Mrs. Mini K Abraham, HOD - Commerce, Surnana College, Bangalore in partial fulfilment for the requirement of BBM of Bangalore University.
I also declare that this is my original work and has not been submitted at any time to any other institute or university for the award of any other Degree or Diploma.
Place: Bangalore Date:
M R KAUSHIK (08KXC08077)
At the outset I would like to thank all people who helped me directly or indirectly in completing the project. I thank Surana College, the institution that has been working towards moulding characters and careers of its students.
I sincerely express my gratitude to Mr.Chandramouli, our principal for the benevolence he has showered on us by providing us with all necessary facilities. I am indebted to Mr. Murlidhar.V, Head of the Department and my project guide for her constant support and guidance, as well as for being source of inspiration to me. I am thankful to Mr. M.B. Ramesh, Partner, KK Industries, Bangalore, for entrusting me with this project and giving his consent and valuable suggestions during the project.
Above all, I owe everything to the almighty, my family, and all my friends and well-wishers for their valuable contributions and insights.
M R KAUSHIK (08KXC08077)
KK INDUSTRIES INDEX / CONTENTS
PARTICULARS Chapter I - Introduction
1.A 1.A.1 1.A.2 1.B
Industry Profile Introduction to Plastic Indian Plastic Industry Introduction to Financial Management and Capital Budgeting
1 1 2 5
1.B.1 1.B.2 1.B.3 1.B.4 1.B.5 1.B.6 1.B.7 1.B.8 1.B.9
Introduction to Financial Management Goals of Financial Management Financial Decisions Functional Area of Financial Management Capital Budgeting Importance of Capital Budgeting Difficulties of Investment Decision Capital Budgeting Process Factors influencing Capital Budgeting Decision
5 5 6 7 9 10 11 12 14
Features of Capital Budgeting Decision Methods of Capital Budgeting Chapter 2 – Research Design
2.1 2.2 2.3 2.4 2.5 2.6 2.7 SURANA COLLEGE
Title of the study Statement of the problem Objectives of the study Scope of the study Period of study Methodology of Research Limitations of the study
24 24 24 24 25 25 26
KK INDUSTRIES Chapter 3 – Company Profile 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 About the company Raw Materials Quality Policy Facilities Company‟s Principal Promoter Business Plan Team Organization flow chart Work Culture Major Orders Received by the company Latest Machineries used by the company Competitors Suppliers Synopsis of the Proposed Project Chapter 4 – Data Analysis and Interpretation 4.2 4.9 4.10 4.23 Financial Planning Assumptions in the study Key Financial Indicators SWOT Analysis Chapter 5 – Summary of Findings and Conclusions 5.1 5.2 Findings Conclusion Chapter 6 – Suggestions 6.1 Suggestions Annexure Bibliography
28 30 30 30 30 31 31 32 32 33 34 35 35 36
44 51 52 67
KK INDUSTRIES LIST OF TABLES