Product: Packaged Drinking Water
(In bottles, pouches and jar)
Comprehensive list of documents and details a bank asks of an entrepreneur
- Feasibility/Project report on various aspects of the venture and what he plans to do
- If it is a manufacturing unit: License from the Government, Registration with the District Industries Center, Clearance from pollution control board, Feasibility report from the electric department, Balance sheet from Chartered Accountant, NOC from local authority, Other documents required for security against loan (Land and Building, Plant and Machinery)
- If it is a non-manufacturing unit, no registration with the Government is required. They might ask for Road transport permit, Sales Tax number, Pin number
A project report gives us an overview of the business. It gives an introduction of his project, justifying how it can be a profitable venture followed by process of manufacture and market potential surveys etc.
The project report submitted to the bank is a little more detailed and contains the feasibility report. This is also known as Detailed Project Report (DPR) or Techno Economic Feasibility Report. Here is an example of the DPR of a Packaged Drinking Water Venture:-
Production Capacity (per annum):-
• Packaged Drinking Water: Total quantity x. Cost per unit: xxxx. In pouches of xxx lts.
• Packaged Drinking Water: Total quantity x. Cost per unit: xxxx. In bottles of xxx lts.
• Month and year of preparation: xx/xxxx
• Prepared by/for: (Address of the manufacturing unit as well as the office address)
• Promoter Profile: Containing bio data
Water is very essential for all living things. Drinking water contains some useful minerals such as sulphur, iron, magnesium and calcium which are essential and useful for the human body to regulate certain body functions. In addition to biological and chemical contamination, water sources are often polluted by external sources, making them totally unsafe for drinking purposes. Drinking water must ideally be free of micro organisms, excess mineral contents and it should be aesthetically acceptable to be free of turbidity, color, odour and any objectionable taste. Due to health consciousness and living standardization there is great demand for mineral water in hotels, restaurants, tourism Dept., Railway Dept. And it is also becoming fashion in conferences, parties, meetings and other celebrations.
Although there are many units in the country are manufacturing mineral water they are not in position to meet the increasing demand. Hence there exists good scope for setting some more units in the country provided units have to prepare quality product and has to select appropriate packaging material. In the state of xxxx there are only about 7-8 units manufacturing mineral water in small scale sector mainly located in xxxxxxx. Still there exists plenty scope for setting up small scale unit for the manufacture of mineral water in the state. The proposed scheme is prepared for mineral water packed in PET Bottles.
Quality Standard/Technical data
ISI, FPO etc.
Pollution Control Certificate data
Basis and Presumption
1. Working days: xxxx
2. Price of plant and Machinery: xxxx
3. Depreciation on Building, Furniture, Furniture etc. is xxxx p.a.
4. Interest Rate on total capital investment xxxx
5. 25% of total investment will be contributed as margin money by entrepreneurs.
Stating the time period right from the preparation of project report, arrangement of finance, registration with various authorities, purchasing and procurement of fixed assets to recruitment of staff and trial run.
1. Process of manufacture:This scheme is prepared based on reverse osmosis process which has an advantage over a de-mineralizing plant and is cost effective. (More facts and figures)
2. Quality control/ specification: Raw water from the proposed source has to be tested in laboratory for the presence of various impurities. IS specification No.xxxx is available for packaged drinking water which is to be followed for manufacturing. (More details on how it is done)
3. Production capacity p.a. (mentioned above)
4. Approximate power requirement, also containing the need for equipments used for pollution control and energy conservation
Total Fixed Capital
1. Land and Building: stating ownership, area over which it is built, costs involved in setting up unit.
2. Plant and Machinery: Cost of all equipment required for packaged drinking water in pouches and bottle, cost of installation and electricity, office furniture, computers, printers etc.
3. Pre-operative expenses: Consultancy charges, cost of preparation of project report, travel and transport.
Total Working Capital
1. Personnel per month along with their job description and monthly salary.
2. Raw Materials required on a monthly basis
3. Utilities per month: Electricity & Water Testing charges
4. Other Expenses such as maintenance and repairing, transport, stationery, advertisement etc.
Total Capital Investment: Fixed capital + working capital for two months.
Means of finance: Own stake + Bank’s contribution.
Calculation of Cost of Production and Profit calculation.
Projected Balance Sheet for the next 5 years ( to be prepared by the Chartered Accountant)
Projected Profit and Loss account statement for the next 5 years
Loan and Interest repayment schedule for the next 5 years
Projected Depreciation as per IT Act
Other: A list of addresses of Plant and Machinery and Raw Material suppliers.
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