Plastic industry project report

 PRODUCT AND ITS USES This project profile envisages the use of drinking Tea and Cool Drinks. The paper cup finds extensive use in railways, Hotels, household appliances, domestic applications. The product ranges from 150 ml to 300 ml, this manufacturing activity may well be set-up as small-scale units.  As there is a good production of instead of plastic cups, weight less as well as easy to carry railway Tea vendors, no environment pollution, increase the demand of paper cups, user customer are to be encouraged in the modern days. MARKET: Because the paper cup industry is in a boom, the requirement of drinking items like Tea, coffee, Cool Drinks for railways, Hotels, household appliances, domestic applications as well as for replacement of plastic cups, Glass items. There is a tremendous requirement of day-to-day life. II. MARKET POTENTIAL III. PRODUCTION TARGETS (Per Annum) Quantity – Quantity – Value – Value –

56,43,000 Nos Rs. 29,18,000

IV. BASIS & PRESUMPTIONS 1. Single shift of 8 hours a day, 25 days a month and 300 days in an year is presumed. Efficient machines and workers are also presumed. 2. Minimum 6 month period is considered for achieving full capacity utilization 3. Labour rates are as per the prevailing rates. 4. An average interest rate of 15% is considered. 5. The estimates are drawn for a production capacity generally considered technoeconomically viable for model type of manufacturing activity. 6. The information supplied is based on a standard type of manufacturing activity viable for model type of manufacturing activity. 7. The information supplied is based on a standard type of manufacturing activity utilising conventional techniques of production at optimum level of performance. 8. Costs in respect of machinery and equipment, raw materials and the selling prices of the finished products etc. are generally prevailing at the time of preparation of the project profiles and may vary depending upon various factors. 9. Whereas some names of manufacturers, suppliers of machinery and equipment, raw materials etc. are indicated at the end of the profile, those are by no means exclusive or exhaustive. V. IMPLEMENTATION SCHEDULE Normally six months are required for the complete implementation of the project, including machinery erection, raw materials procurement etc. VI. PRODUCTION DETAILS AND PROCESS OF MANUFACTURE The process of manufacture consists of the following operations.

The process of manufacturing Poly coated paper purchased from market then cut in the required sizes, fabricate outer shell then put in the bottom mould pressed and pasting and keep it in the final paper cup mould. After making the cup checked random pieces for customer requirement. Then packing by plastic cover in 100 paper cups in a set. VII. LAND & BUILDING Land 250 sq.m.

} } Rented Rs. 5,000 p.m. }

Building 150 ” VIII. MACHINERY & EQIUPMENT

Sl.No. Description

No.

Rs.

1

8,50,000

L.S.

50,000

1

Full Automatic Operation of Paper cup Machine and other assembly

2

Dyes and Moulds

3

Office equipments and furniture

-

50,000

4

Erection and electrification 10% of the cost of machinery

-

10,000

Total

9,60,000

Pre  –   operative expenses

10,000

Total

9,70,000

IX. STAFF AND LABOUR (Per Month)

Sl.No.

Description

Nos.

Salary (Rs.)

1

Manager

1

5,000

2

Production Supervisor

1

3,000

3

Accountant-cum-storekeeper

1

2,500

4

Watchman-cum-peon

1

1,500

5

Skilled Workers

2

5,000

6

Unskilled Workers

6

10,800

Total

27,800

Perquisites 15%

4,170

Total

31,970

Say

32,000

X. RAW MATERIALS (Per Month)

1

Special type of paper (Poly coated paper) 2 Tones @ Rs.6, 000/-

2

Printing chemicals and Dyes

L.S.

5,000

3

Packing Material

L.S.

5,000

Total

1,20,000

1,30,000

XI. UTILITIES (Per Month)

1

Power 3000 units @ Rs.3.80/-

2

Water

11,400 300

Total

11,700

XII. OTHER EXPENSES (Per Month)

1

Postage and Stationer

500

2

Telephone

500

3

Consumable Stores

4

Repair and Maintenance

5

Transport Charges

6

Insurance

500

7

Misc. Expence

500

1,500 500 1,000

Total

5,000

XIII. WORKING CAPITAL FOR THREE MONTHS

1

Salary & Wages

32,100 x 3

96,000

2

Raw Materials

1,30,000 x 3

3,90,000

3

Utilities

11,700 x 3

35,100

4

Other expenses

5,000 x 3

15,000

1,78,700

5,36,100

Total XIV. TOTAL CAPITAL INVESTMENT

1

Fixed capital

9,60,000

2

Working Capital

5,36,100 Total

14,96,100

MACHINERY UTILIZATION The whole operation of Tea cup and Cool Drink Cups making process is involved simultaneously. So the machine utilization has been taken 75% per day on single shift. XV. COST OF PRODUCTION (Per Annum)

1

Total Recurring Expenditure

2

Depreciation on machinery @ 10%on 8,50,000

85,000

3

Depreciation on Moulds/Dies @ 25% on 65,000

12,500

4

Depreciation on Office Equipment @ 20% on 50,000

10,000

5

Interest on total capital @ 15% on14, 96, 100

2,24,400

Total

24,76,300

XVI. TOTAL SALES (Per Annum)  Annual production of paper cups 150 ml (Tea cup) 300 ml (cool Drink cup) Saleable materials 59,40,000 Nos  After allowing 5% rejection 2,97,000 Nos 56,43,000 Nos XVII. PROFITABILITY (Per Annum) Profit 27,00,000 – 24,64,350 = 2,35,650 Net Profit Ratio : Net profit x 100 / Turn over

21,44,400

= 2,35,650 x 100 / 27,00,000 = 8.92% Rate of Return: Net profit x 100 / Total Investment = 2,35,650 x 100 / 8,18,900 = 28.78% XVII. FIXED COST Depreciation of Machinery Interest on total investment Rent 40% on salary and wages 40% of Other expenditure

28,500/98,250/48,000/1,78,100/36,000/3,88,850/-

B.E.P. Fixed Cost x 100 / Fixed Cost + Profit = 3,88,850 x 100 / 3,88,850+ 2,35,650 3,88,850 x 100 / 6,24,500 = 57.37% XIX. NAMES AND ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS 1.

M/s. J.K.Enterprises, 62/173, Thiruvalluvar salai,  Alwarpet, Chennai.

2.

M/s. Jayveer Traders, 171-D, Raj Building, Thoddarayan koil street, Kattoor, Coimbatore, Tamil nadu.

3.

M/s. Rockford Business Links, K-120/6, Bougain villa,  Anna nagar East, Chennai.

XX. NAMES AND ADDRESSES OF RAW MATERIAL SUPPLIERS 1.

M/s. Jagdish Fine Arts, 4/687/A, Husain Colony, Sivakasi, Tamil Nadu.

2.

M/s. Vidya Laminators Private Limited, 112/236, Swaroop Nagar, Kanpur, Uttar Pradesh.

3.

M/s. Lampack Paper Products,  A-1, Industrial Estate, Visakapatnam, Andrapradesh.

4.

M/s. Kamakshi Lamipack private Limited, 101, Sidco Aiema Tower, Ist Main Road, Industrial Estate,  Ambattur, Chennai.