Research Report

·         OBJECTIVE OF THE STUDY

The objective of the study is to explore the most profitable, environment friendly & sustainable business enterprise between Vermicomposting and Handicrafts for our school- St. Mary’s School, Dwarka.

·         Purpose of the study

The study aims to analyse best possible business for the school provided under low cost, less time consumption and environment friendliness between Vermicomposting and Handicrafts and to find out which business is the most viable option to run as a learning organisation. Also, this study entails a detailed analysis on what is the consumer demand, market potential, where such products will be sold and how these products will be manufactured & marketed by students themselves.

This business will be done in a manner giving the first hand experience and learning ethics to students.

·         RESEARCH METHODOLOGY:

Primary Data:

The domain of the study was by and large the markets of Delhi. The sample size chosen for consumer’s survey and the retailer’s survey  was 100 persons.

All the data was collected first hand by the students using questionnaires. Consumers of Vermi compost and Handicrafts were interviewed alongside the Nursery producers for Vermi compost and shop manufacturers for Handicrafts.

                          

                                                           Vermicompost vs Handicrafts

Secondary data:

For the secondary data, mainly website information was used. It had already gone through a statistical process and was thus reliable.

DATA  & COST ANALYSIS

All the data, collected was compiled and thoroughly analysed with calculations and statistical tools.

For Vermi compost and Handicrafts, different costs were involved i.e. manufacturing, distribution & marketing and these were calculated.

·         RESULTS (PRIMARY DATA)

VERMI COMPOST

 

HANDICRAFT

The respondents were asked whether they would like to buy vermi compost or handicrafts from us. It was found that out of 50 respondents, 34 agreed to buy vermicompost whereas out of 50 respondents, only 14 agreed to buy handicrafts. Thus, it can be concluded that demand for vermi compost is high as compared to demand for handicrafts.

COST ANALYSIS

HANDICRAFTS

Explicit cost

Particulars	Amount (Rs.)
Raw material (charts)	1500
Colours	1500
Brush	100
Decorative material	150
Frame	30000
Advertisement cost	100

Implicit cost

Particulars	Amount (Rs.)
Imputed rent	1500
Imputed labour cost	10000

Total Cost                                                                                                               33350

Revenue

Selling price per painting                                                                                            500

Number of units sold                                                                                                 100

Total Revenue                                                                                                        50,000

Profit                                                                                                                        16650

VERMICOMPOST

Explicit cost

Particulars	Amount (Rs.)
Setting up the vermicompost site   Labour charges for setting up the basic structure   Bricks   Manure	250 1000 300
Collecting and putting worms	500
Making carry bags with stamps   Needles   Thread   Printout of the stamps	8 10 50
Advertising cost   Photocopy of pamphlets made by students   Colours	70 30

Implicit cost

Particulars	Amount (Rs.)
Imputed rent	1000
Imputed labour cost	5000

Note: Implicit cost has not been added while calculating the total cost as land of the school is being used by students.

Total Cost                                                                                                                  2218                                                                                                   

Revenue

Selling price per packet (1 kg)                                                                                    40

Number of units sold                                                                                                  300

Total Revenue                                                                                                           12,000

Profit                                                                                                                          9782

Note: The establishment cost of vermicompost is small as compared to handicraft and demand for vermicompost is more at our locality. Vermicompost as a business enterprise will generate more profit in the long run. Also, it is environment friendly and organic.  Therefore, it is advisable to choose this business.

·         LIMITATIONS OF THE STUDY:

·         Respondents may not have given their exact views or have hidden some information.

·         Casual attitude of some respondents led to some misleading information.

·         The effectiveness of suggested ways is long term and the results can be noticed only in the coming months.

·         FINDINGS:

After conducting primary research it was found that Vermi compost is used more frequently and in larger quantities than handicrafts.

Also, according to manufacturers, organic manure is produced & sold in larger quantities than Handicrafts. Customers prefer buying organic manure at a lower cost over handicrafts.

Cost & Margin analysis of Handicrafts and Vermi compost also gave out Vermi Compost as a more profitable option.

·         Recommendations:-

Vermi composting will be the most feasible & profitable option for our School to represent in this competition. Also it will give a wholesome experience of a business to students.