PROJECT REPORT OF ` 50,00,000/BRIEF FEASILIBILITY ANALYSIS AND PROJECT PROFILE FOR SETTING UP OF A AUTOMATIVE NONWOVEN BAG MAKING UNIT: INTRODUCTION
General Information about Nonwoven and its application: Nonwoven fabric is a fabric like material made from long fibers, bonded together by thermo mechanical process. The term is used in the textile manufacturing industry to denote fabrics, such as felt, which are neither woven nor knitted. Nonwovens have become an alternative to Plastic packaging material. Nonwoven materials are used in numerous applications, including: Packaging, Hygiene, Medical, Auto, Agricultural, Other uses Market potential for the NW Automatic Bag:
Now a days government has banned use of polythene bags because of environment concerns. Nonwoven bags are fast replacing polythene bags in the retail sector. There are very few bag making units in Odisha and its neighboring states. With availability of bags in the local market, the retail segment would gradually shift to NW bags. Creation of market for nonwoven depends upon the entrepreneur’s ability to push the same in the market. Apart from retail segment, the NW bags are being widely used as fancy bags, gift bags and Tote bags. In a small township with 50,000 populations, the use of carry bags by retailers could be to the tune of 10000 pcs per day. If the NW bags take 20% of that market potential the use could be 2000 bags per day. Assumption for this project: 1) PP Non woven Fabric Price- ` 122/kg. 2) Selling price of Bag- ` 140/kg. 3) Weight per bag- as per your choice. 4) Production rate- 20 MT Per Month at 60% capacity 5) No of working hours per day- 8hours/day 6) No of working days per month-25 days 7) No of working day in a year-300 days. 8) No of Operator required is 1 and monthly salary is `7,000/9) No of helpers required is 2 and monthly salary is `4,000/10) No of Manager cum sales person required is 1 and monthly salary is ` 10,000/11) Area required for the project is 1500 Sq. ft. 12) Rent of that area is on and around ` 7,500/13) Rate of Interest 12% Per annum. 14)We have not taken Income Tax for all calculations. 15) All sales except wastage sales are 50% cash and 50% credit and wastage sales are in cash. 16) All Credit Sales are on 15 days credit. Investment & profitability Analysis: As per the above investment plan, you can purchase only one automotive stitching machine and run your industry in a rented place.
INVESTMENT: Particulars Cost of Automatic Ultrasonic Sealing Machine Investment in Electricity installation, stabilizer, compressor etc. Investment in Stores & Spares. Investment in furniture, fixtures & tools. Investment in working Capital for 30 days. Total Investment *
Amount (`) 2,000,000.00 275,000.00 40,000.00 25,000.00 2,460,000.00 4,800,000.00
* We have not considered any bank loan for this project, which is available under many schemes of Government of India and Government of Odisha. COST ANALYSIS: Production in a month (at 60% capacity) Raw material required per month
20 MT 20000 Kg @ 122
Consumables, spares etc (thread, needle, bobbins, oil)
200 per day
Profitability Analysis: Particulars Sales (A) Bag Sale (19800x140) Wastage Sale(200x40) Expenditure: (B) Raw Material (20000 x 123) Consumables & Spare Parts(200 x 25) Labour Cost (4 Person) Rent Other Administrative & Selling Expenses( 500x25) Profit Before Depreciation and Interest (C=(A-B)) PBDIT % Depreciation (D) Interest on Investment @ 12% P.A (E) Profit Before Tax (F=C-D-E) PBT (%) Cash Profit ROCE ( Per month)
Amount (`) 2,772,000.00 8,000.00 2,460,000.00 5,000.00 25,000.00 7,500.00 12,500.00 &
Tax
Amount (`)
2,780,000.00
2,510,000.00 270,000.00 9.71
29,250.00 48,000.00
77,250.00 192,750.00 6.93 222,000.00 5.02
Remarks: 1. In the Projection stated here we have stated the maximum expenses and the minimum profit that the owner is likely to get in the toughest circulumstances. 2. The profit will increases remarkeably if the owner runs more then one machine as fixed cost gets divided and variable costs have more weight-age.
Details of the Name of Supplier.
Outside India 1. Wenzhou Ounuo Machinery Co. Ltd Doubei Economic Development Zone, Gexiang Town, Ruian City, Zhejiang, China. Cell:+86-137-36905078 Tel:+86-577-63708289 Fax:+86-577-65096856 http://www.wzonjx.com Alibaba No-cn220253117 Skype:kitty870828 Yahoo:
[email protected] Email:
[email protected] MSN:
[email protected] 2. Jiaxing JingKaiQiXing Machinery Factory Fengyuan Road, Nanhu Industry Area 2, Jiaxing City, Zhejiang Provence, China, Postal Code-314001 Webside: http://en.jxqx.com.cn/ Tel:+86-0573-82696669 Fax:+86-0573-83958656 3. Audited Supplies by SGS 9R, Xinbaohui Building, Nanhai Road, Nanshan District, Shenzhen, China. Sales Manager:Sici Qin Tel: +86-755-33086993 fax:+86-755-33086990 Phone:+86-013632553512 Email:
[email protected] Web:http://www.non-wovens.com 4. Wenzhou Ruizhi Packing Machinery Company. Add: Zhenglou Industrial Zone, Pingyang, Wenzhou City, Zhejiang Province, China. Website:www.packingmachinery.org Tel:+86-13868382221 Fax:+86-577-63785677 MSN:
[email protected] Email:
[email protected] Manager Mobile:-86-(0)-13967700784 5. Xinye(or E-Light) Packaging Machinery Factory Add:No-104, Main Roadside, Yongguang, Shangwang, Ruian, Zhejiang, China. P.C-325206, Fax:+86-577-65132727 Website:www.raxinye.com or www.bag-makingmachine.com Email:
[email protected] MSN:
[email protected] In India 1.Sun Trading, Chennai, No-2/PC-5, S.S.A Complex, First Floor, Mugappair, West, Chennai.-600037 Tel:+91-44-43537527, Mobile-9500006343/9500006332 Email:
[email protected], 2.Radiance India 115A, Empire Estate Building, 1st Floor Ring Road, Surat(Guj), India. Website:www.radianceindia.co
[email protected]. Office no-+2616642006
