PROJECT PROFILES

SL.NO.

NAME OF THE PROFILE

1.

Project profile on Flour Mill

2.

Toilet Soap Manufacturing Unit

3.

Tomato sauce Manufacturing Unit

4.

Project profile on Roasted Rice Flakes

5.

Banana Fiber Extraction and weaving

6.

Computer Assembling

7.

Light Engineering(Nuts, Bolts, Washers, Rivets etc.)

8.

Metal Based Industries: Agricultural Implements, Cutleries& Hand Tools

9.

Manufacturing of Paper Products (Paper Cups)

10.

Project profile on Curry and Rice Powder

11.

Project profile on Bakery Products

12.

Project profile on Steel Furniture

13.

Project profile on Desiccated Coconut Powder

14.

Project Report on Foot Wear

15.

Project report on Wooden Furniture Manufacturing Unit

16.

Manufacturing of Paper Napkins

17.

Project Profile on Pappad Manufacturing

18.

Project Report on Readymade Garments

19.

Project Report on Pickle Unit

20.

Project Profile on Manufacturing of Palm Plate

21.

Project Report on Note Book Manufacturing

22.

Dairy Products

23.

Project profile on Detergent Power and Cakes

24.

Sanitary Napkin Manufacturing Project

25.

General Engineering Workshop

26.

Rubberised Coir Mattresses

27.

Beauty Parlor

PROJECT PROFILES

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

PROJECT PROFILE ON FLOUR MILL

Introduction
Food is the most required product since human kind came into existence. Modern era looks for
quality food products. Therefore demand for food in the market is perennial.
Market Potential
Raw material is available in and around the country side. People looking for quality food
material are residing everywhere. There is enough market potential for standardized food
products.
Location
The unit is located at the premises of the residences of the target group in a rented building.
Presumptions
Production will be spanning eight hours a day and 25 days in a month. In two years full capacity
will be utilized. Minimum wages will be paid to the labourers. Rate of the loan will be 15% per
annum. Margin money by the promoter will at the rate of 50%.
Schedule of Implementation
Commencement of commercial production will start within six month clearing all mandatory
measures.
Technical aspect
Manufacturing process: The various steps involved in the flour manufacturing are as follows.
Washing
Grading
Drying
Flouring
Packing
FINANCIAL ASPECTS
A. Fixed Capital
Land and Building :- 100 sq/m area rented.
Plant and Machinery
Sl. No
1
2
3
4
5
6
7

Item
Pulvariser with accessories
Double stage pulvariser
Roaster
Gas connection
Weighing Balance
Sealing Machine
Vessels
Total

Cost (Rs.)
16,600
17,800
20,500
10,000
8,000
3,000
6,000
125,000

Working Capital
Sl.

Item

Cost

No
1
2
3
4

(Rs.)
50,000
39,000
9,000
2,000
100,000

Raw Materials
Wages
Electricity Charges
Gas
Total
Total Project Cost

Sl.
No
1
2
3

Item

Cost
(Rs.)
25,000
125,000
100,000
250,000

Building
Machinery
Working Capital
Total
Means of Finance
Promoters contribution

125,000

Bank Loan

125,000

Total

250,000

Sales Turnover
Expected Sales Turnover per month 115,000
Monthly Expenditure
Sl.
No
1
2

Item

Amount
(Rs.)
100,000
5,000
105,000

Working Capital
Loan Repayment
Total

Profit per Month

Sales

Expenditure

105,000

Profit

10,000

115,000

TOILET SOAP MANUFACTURING UNIT

INTRODUCTION
In present age, all people want to appear smart and elegant in his personality. The
history of soap industry in India is very old say since 1889. The use of soap or soap like
cleaning agent has always been associated with mans inherent instinct to keep his body
and other belonging clean. Soap help remove slag from skin to make skin a brilliant
glow. The principal raw material of soap is oil and fats. According to these raw materials
the quality of soap and category of soap is changed. The necessary raw materials are
needed to be of high purity and the finished product should have the balanced pH as its
froth may enter the eye. Toilet soaps are made by combining liquid fats (like vegetable
oils or animal fat) with an alkali like sodium hydroxide (also called lye). The process is
called saponification; the definition of saponify is literally to turn fat or oil into soap
by reaction with an alkali. During the curing process, the sodium hydroxide and water
evaporate out of the product, leaving behind just awesome soap. Superfatting, which
refers to the process of adding liquid fats to soap after saponification, is popular for its
rich, moisturizing effect. Clear soaps will add glycerin and sorbitol (a sugar alcohol with
emollient properties), and products labeled antibacterial usually rely on triclosan, a
substance that kills bacteria and helps prevent fungus growth. A simple production
method with high return soaps are invariably used in every household. The antibacterial
soap with a moisturizer added has huge market potential. The market is spread from
remote village to the metro cities alike. The industry gives a good profit and high
employment oriented.
MARKET POTENTIAL
There is a vast market available for Beauty Toilet Soap in Kerala and its around. It being
soft in nature will act on skin giving soothing effect. This Beauty soap is nothing but a
toilet soap of good and refined quality and balanced pH, so this soap have as good market
as other toilet soap have. Because of its charming name this soap can be used by all male,
female irrespective of caste, creed and sex. As the fashion grows up its market potential
will also grow accordingly. Considering the population trend in the state, there is still an
ample scope for growth of this industry. There are so many kind of toilet soap flooded in
the market but because of its peculiar name and nature, quality and properties it will also
grab good market in present scenario.
QUALITY CONTROL & STANDARD
In order to maintain the best quality of the product it is very much necessary to
manufacture this soap under some specific standards. This mean to say that some
standard specification has got to be followed to maintain certain qualities such as pH,
acid, No. total fatty matter(TFM) available and moisture etc. Taking into account its use
the product should
be skin-friendly in all respects and point of view. To manufacture this
Beauty Soap a general standard for toilet soap i.e. IS: 2888-194 or

revised can be followed. Some changes in the product specification can be taken into
account to improve the quality soap to satisfy the customers
demand and requirement.
BASIS & PRESUMPTION
The unit will work 6 days a week. On single shift basis (8 hours)
The calculations have been carried out on present data available.
If necessary other type of soap like shower gel can also be manufactured by using the
same machinery.
The production capacity i.e. 80% have been taken into account.
The wastage has been considered at a rate of 2%.
Toilet Soap
Quantity (Kg)

364560 Nos

Value (Rs)

Rs. 47,39,280.

IMPLEMENTATION SCHEDULE:
i. Registration of Unit (EM-1)

- One day.

ii. Loan Sanction (including TFR)

-2 Months

iii. NOC-Pollution Control Board

-1 Month

iv. Installation of machinery

-1 Month

v. Power connection

-1 Month

vi. Testing operation

-1 Month

vii. Production

-7 Month onwards.

TECHNICAL ASPECT
This Beauty soap will be manufactured as per the set formulation,
Stated as below, so as to have the skin friendly soap for daily use.
.

Name of raw material

Quantity (Kg)

Coconut oil

50

Tallow

50

Caustic soda

50

Colour (green, blue, rose,orange,yellow,

etc)

0.05

Perfume mixtures for the soap

1

Bergamot oil

5.5

Jasmine oil

3.0

Lavender oil

3.5

Palm rose oil

3.5

Lemon oil

2.5

Cedar wood oil

2.0

Tincture for musk

0.5

MANUFACTURING PROCESS
The beauty toilet soap can be made or manufactured into 2 steps namely preparation of soap base
and to obtain finished products soap base. For making the soap base the specifications is carried
which is done by either remitting and perfuming and secondly by milling process. Fat should be
used of high standard quality. Weigh fat oil & lye (sodium- hydroxide) accurately, if the lye is
weighed more, the soap will be hard and harmful to skin and if the lye is low, the fat will not be
saponifed properly. Melt oil fat into a kettle and filter it to remove any impurity. Now add
caustic soda lye into it slowly and stir continuously when the oil is saponified fully add perfume
and colours and pour into moulds.

FINANCIAL ASPECTS
LAND & BUILDING:
1

Covered area

Sq. Ft.

500

Uncovered area Sq.

Sq. Ft.

250

Total area

Sq. Ft.

750

Whether constructed or

Constructed

Rented
5

If constructed, constructed

Rs

5,00,000/-

Rs

5,00,000

Value
Total

MACHINERY AND EQUIPMENT:

SN. Description

Qty- Nos Value (Rs.)

Saponifying fans -100kg

7000

Melting pans/kettle with agitator/ stirrer

100kg

8000

Lye Storage tank with SS lining 50 lit. each

6000

Frames( for cooling soap)

6000

4000

50kg. Capacity
5

Automatic soap stamping m/c

( 50 pcs per minute )

Cutting machine

4000

Boiler

35000

Hydrometer, beaker, cylinder

20000

10000

pHmeter, spatula and furniture

9

Installation/Electrification
Total

100000

Total fixed cost Rs.1,00,000 + Rs. 5,00,000/- = Rs. 6,00,000/RAW MATERIAL & PACKING Material (PER MONTH):

S.N.

Particulars

Quantity
(Kg)

Rate
(Rs)

Value
(Rs)

Coconut oil

1000

170

1,70,000

Tallow

1000

50

50,000

Lye

1000

14

14,000

Colour

100

1,000

Perfumes

5000

Packing material

10,000

Total

2,50,000

STAFF & LABOUR (PER MONTH):

S.N.

Particulars

Nos

Salary

Value (Rs)

Manager / Director

10000

10000

Chemist

6000

6000

Skilled workers

4000

8000

Technical-Unskilled
worker

3000

6000

(i)

Clerk

3000

3000

(ii)

Peon/ Watch man

2000

2000

Sub-Total

35000

Plus perquisites @ 15% of salaries

5000

TOTAL

40,000

OTHER EXPENSES (PER MONTH):

Power / Electricity Charges

3000

Water Charges

500

Maintenance & repair.

4500

Printing postage & stationery

2000

Cartage/ transportation charges

4000

Selling/ publicity

4000

Telephone

1200

Insurance

800

Total

20,000

WORKING CAPITAL (FOR ONE MONTH):

SL.NO.

DESCRIPTION

AMOUNT(RS)

Raw material (Only 30 Days)

250000

Salaries & Wages

40000

Other Expenses

20000

Total

3,10,000

Working capital for 3 months 310000*3= 9,30,000/TOTAL CAPITAL INVESTMENT:

Building

500000

Machinery & Equipment

100000

Working capital for 3 month

930000

Total

15,30,000

Promoters contribution ( 25% of total capital investment) : 3, 82,500/Govt. finance (Bank Loan Amount): 11,47,500/FINANCIAL ANALYSIS

Cost of Production (Per Annum)

Total recurring cost per year( i.e Working 310000*12
Capital for 12 months)
months=37,20,200/Depreciation on machinery &

100000*10%=10,000/-

Equipment ( @ 10% )
Depreciation on Building ( @ 5 % )

500000*5%=25,000/-

Interest on total investment ( @ 10% ) [ Bank 1147500*10%=1,14,750/Loan Amount

Grand Total:

38,69,950/-

SALES PROCEEDS (PER ANNUM):

Qty (Kg)
Total capacity of project

37200Kg

Wastage ( @ 2% )

744Kg

Value (Rs.)

Net production

(37200744)=36456Kg

No. of soap cake

bearing 100 gram of weight each

36456/0.100=364560
Nos

Cost of each cake[ 100gm pack]

Rs: 13/-

Total sale

Rs 13.00 * 364560
Nos = 47,39,280/-

Profit Analysis (P.A.)

Net Profit =[ Sales- Cost of Production ]=
47,39,280-38,69,950= 8,69,330.
Income Tax at 30%=2,60,799.
Profit after tax=[8,69,330-2,60,799] =6,08,531/Rate of Return
On total sale =[ Profit * 100/Cost of Production] 6,08,531x100/38,69,950= 15.72 %.
On total capital investment:= [ Profit * 100/Total Capital Investment]
6,08,531x100/15,30,000= 39.77 %
BREAK- EVEN ANALYSIS
Fixed cost x 100
Fixed cost + Net Profit
FIXED COST
Rent [ own building]

Rs: 0/-

Total Depreciation[ Machinery & Building]

Rs: 35,000/-

Interest on Total Investment

Rs: 1,14,750/-

40 % of Salary & Wages[ 40000*12/ 40%]

Rs: 1,92,000/-

40% of utilities & other contingent expenses[

20000*12/ 40%]

Rs: 96,000/-

Total:

Rs: 4,37,750

Net Profit =6,08,531/Fixed Cost: 4,37,750/B.E.P= 4,37,750 x 100

=41.84 %

4,37,750+6,08,531
Manufactures/ Suppliers of Machinery:

1 Mezhukkattil Mills
No. 4/43, Chunangamvely, Erumathala Post ,
Ernakulam - 683112, Kerala
www.indiamart.com/mezhukkattil-mills
Ph: 08042964764
2 National Precisionss
No. 138/1, Semmam Palayam Pirivu, Nasiyanur PO ,
Erode - 638107, Tamil Nadu
www.indiamart.com/national-precisionss
Ph: 08376808718
3 Rising Industries
Teghoria Loknath Mandir, Jhowtala, Ghosh Dutta Para, Tanushree
Apartment , Kolkata - 700157, West Bengal
www.risingmachinery.com
Ph: 08586924234
4 Frigmaires International
P. O. Box No. 16353, Janata Industrial Estate, Lower Unit No. 8, Senapati
Bapat Marg, Opposite Pheonix Mill, Mumbai - 400013, Maharashtra
www.feprojects.com
Ph: 08447571763
5 Adhi Sakthi Projects
No. 40/9, Earikkarai Road, Near Wipro Computers, Kothapurinatham,
Thiruvandarkoil , Pondicherry -605102, Pondicherry
www.adhisakthiprojects.com
Ph: 08588811550
6 United Detergent Engineers
No. 14, Bajanai Koil Street, Uppilipalayam ,
Coimbatore - 641015, Tamil Nadu
www.indiamart.com/uniteddetergentengineers
Ph: 09953361667
7 Surya Machines
225, Kattoor Street, Valiyam palayam Road, Kalappatti,
Coimbatore - 641048, Tamil Nadu
www.indiamart.com/suryamachines
Ph: 09442334760
Suppliers of Raw Materials
1 Mathewsons Exports & Imports Private Limited
Mathewsons Building, Kaloor , Kochi - 682017, Kerala
www.indiamart.com/mathewsons-exim
Ph: 08045327801
2 Intermas
12 / 25, College Road, Panayapally , Kochi - 682002, Kerala
www.indiamart.com/intermas-cochin
Ph: 08042954720
3 Nagarjuna Herbal Concentrates Ltd.
Thodupuzha,. , Kochi - 685 588, Kerala
www.indiamart.com/nagarjunaherbal
Ph: 09961883222

4 Punarnava Herbals
Edappally North P. O. , Kochi - 682024, Kerala
www.indiamart.com/punarnava-herbals
Ph: 09895603033
5 Rich Exports & Imports
Blue Bells, Vikas Nagar, Maradu , Ernakulam - 682304, Kerala
www.indiamart.com/rich-exports-imports
Ph: 08043049648
6 Grocer Online
Door No. 60/479 B1, Koithar Complex Panampalliy Nagar,
Ernakulam - 682036, Kerala
www.indiamart.com/grocer-online
Ph: 09567727138
7 Neo Products Sopas And Perfumes
Market road, Thripunithura , Ernakulam - 682301, Kerala
www.indiamart.com/neo-products
Ph: 09847427383

TOMATO SAUCE MANUFACTURING UNIT

INDRODUCTION
Tomato is one of most popular vegetables used for human consumption. Apart from
their use in food preparations, tomato products like sauces, ketchups etc are used as table
enricher especially along with fast food items like pizzas, burger, puffs etc. This is made
from tomato juice and many other ingredients and preservatives are added to it to
enhance its shelf life and taste. These products are consumed by people of all age groups
and demand is going up.

MARKET POTENTIAL
Tomatoes are available during the season at cheaper rates and prices start shooting
up during off-season. But main reason for these products becoming popular is their
extensive use as enrichers along with bread and other such preparations, in making some
fast food items like pizza, burger etc. and as additives with many food preparations.
Hence, these products are witnessing increase in demand year after year. They have
already become popular in urban and semi-urban areas and are now making in-roads in
rural markets as well. Thus, there is a good scope for these products especially in semiurban and rural areas.
BASIS AND PRESUMPTIONS
1. The production is based on a single shift basis of 8 hours per day and 25 working days in a
month.
2.

Land and building has been acquired monthly Rent of Rs 10000.

3. Rate of interest for fixed and working capital @ 15 % per annum.

IMPLEMENTATION SCHEDULE
It will take one year to complete all the formalities before starting the commercial
production.

TECHNICAL ASPECTS
PROCESS OF MANUFACTURE
Ripe and matured tomatoes are washed and graded. The graded tomatoes are then boiled in
steam kettles. The boiled tomatoes are then pulped and the juice is filtered out from seeds, fiber
and solid waste. Spices and condiments like ginger, garlic, clove, pepper, salt, sugar, vinegar etc
are added. Allowed preservatives are added to the sauce pulp. The sauce is quickly cooled and
allowed to solidify into a thick pulpy sauce. The sauce is then packed in sterilized bottles and
pouches, sealed and stored for sale. The recovery of juice varies depending on the quality and
variety of tomato.

POLLUTION CONTROL
This industry does not create any kind of pollution and as such there is no need to take any
preventive measures for pollution control
PRODUCTION CAPACITY
Srl No.
1

Product
TOMATO SAUCE

Per Annum(Kg)
30000

FINANCIAL ASPECTS
MACHINARY AND EQUIPMENTS
Sl.No

Items

Pulper

Amount
in Rs.
60000

Stirrers

20000

40000

Steam Jacketed Kettles

Precision
Weighing
Scale
Containers & vessels

Furnitures

20,000
20000

Desktop computer

30000

Total Fixed Capital

200,000

10000

Value(Rs)
28,50000

Requirement of Power = 10HP

MAN POWER REQUIRED

Manager

Salary
In Rs.
15000

Sales Person

24000

Skilled workers

10000

Semi Skilled Workers

8000

Sl.No

Profession
1
2
3
4

Nos.

57,000

Total
UTILITIES AND OTHER EXPENSES
Power Charges

6500

Water charges

1000

Rent

10000

Telephone charges
Miscellaneous
expenses

500
500
18,500

Total
WORKING CAPITAL

No. of
month

Amount

Tomato

135000

Other ingredient

112500

Packing Raw Material

75000

Salaries

171000

Utilities
Rent
,
Telephone
miscellaneous expenses

55500

33000

5,82000

Particulars

and

other

Total Working Capital

TOTAL PROJECT COST
1
2

Fixed Capital

200,000

Working Capital

582,000
7,82000

Total Project Cost

MEANS OF FINANCE

1
2
3

Own Capital

1,95500

Term Loan

1,50000

Working
Capital Loan

4,36500

COST OF PRODUCTION PER MONTH

Total recurring cost

2328000

Depreciation on machinary @10%

18000

Depreciation on furniture @20%

4000

Interest on term loan + Working caital

loan @15%

87975

24,37975

Total Cost of Production

TURN OVER PER YEAR
Item
Name
Tomato
sauce

Quantity(kg)

Rate/kg(Rs)

Value(Rs)

30,000

95

28,50000

NET PROFIT (BEFORE TAXATION) PER YEAR

Net Profit (before taxation) Per year
NET PROFIT RATIO
=

(Net profit per year * 100) / Turnover per year

(412025*100) / 28,50000

14.45%

RATE OF RETURN ON TOTAL INVESTMENT

=
=
=

(Net profit per year * 100) / Total investment

(412025*100) / 782,000
52.68%

4,12025

BREAK EVEN POINT

Fixed Cost
Rent for one year

120000

Total depreciation

22000

Interest on total investment

87975

40% of salaries
40% of utilities

273600
91800

Total

595375

BEP = (Fixed Cost*100)/( Fixed Cost + Net Profit)

= (595375*100)/( 595375+412025)
= 59.10%
Addresses of Machinary and Equipment Supplies
1. M/s Ganesh Engineering works Coimbatore, Tamilnadu.
2. M/s Precision Weighing Technology Pvt Ltd , Coimbatore, Tamilnadu.
3. M/s Patel Industries Bangalore , Karnataka.
Raw Material Suppliers
1. Palayam Vegetable Market Kozhikode, Kerala
2. M/s Polytech plastic industries , Coimbatore, Tamilnadu.

PRODUCT PROFILE OF ROASTED RICE FLAKES

INTRODUCTION
Generally the beaten rice is a popular food for all kinds of human living inIndia. Most
people used this as a raw food in ancient times which is very easy to produce and prepare
at home. Now the people are making different kinds of recipes with this by adding
sweetness or spices. This is rich in fiber and carbohydrate and can be consumed even by
those suffering from diabetes, high blood pressure etc. Now the medical journals are also
encouraging the same. Another point to be remembered is that paddy is available in
plenty in India (and kerala) and hence the raw material has no shortage.

PRODUCT
CFTRI Mysore has introduced new methods to evolve the roasted flakes with different
spices and sweetness. This can be directly used as a snack or light food. This can easily
attract both small children and elders. Also one of the specialties is the easiness with
which the product can be prepared though it consumes a little time.

MARKET POTENTIAL
This product in the market is relatively new one. Hence it has tremendous scope. A good
quality product in attractive pack will give a boost in marketing the product. The main
scenario in rice flakes is that it is pure in nature and adding spices or sweets will not
contaminate it in any way.

TECHNICAL ASPECTS
The Process
The paddy is cleaned and stones are removed. It is soaked in water and boiled in a boiler.
When it is lowered its temperature is reduced a little and is pounded or pressed
mechanically to form flakes. It is sieved and roasted by adding the required flavors. This
product is packed and labeled indifferent weights.

CLEA
NIN
G
PAD
DY

SOA
KING
IN
WAT
ER

BOIL
ING
POU
NDI
NG

PAC
ROA
SIEVI
KING
STIN
NG
Pollution
control
AND
G
ThisLABE
industry does not createWIT
any kind of pollution and as such there is no need of any
preventive
measures.
LLIN
H
G
FLAV
OUR
S

FINANCIAL ASPECTS
Fixed Capital
Land and building
It is estimated that a land of 250sqm is required with 125sqm with buildup area.Cost of
land in rural area is calculated as Rs1,25,000/- and the cost of construction is taken as
Rs3,25,000/Plant and machinery
It is suggested to install a unit with annual production capacity of 250MT based on
300working days and 1 shift per day.
No

ITEM

QUANTITY

PRICE(IN
LAKHS)

Avil mill

1.50

Roaster

1.00

Husk fired Furnace

0.25

Paddy soaking tanks

0.60

Sieves

0.25

Sealing machines

0.25

TOTAL

3.85

Furniture and fixing

A provision of Rs40,000/- is provided for the working tables furniture and fixtures
storage facilities.
Utilities
Power requirement shall be 15 hp and daily water consuming is Rs750 for 800 liters
Manpower requirement
Particulars
Monthly salary(Rs)

Total Monthly salary(Rs)

Skilled workers

3500

7000

Semi-skilled Workers

3000

6000

Helpers

2000

8000

Sales man

3000

3000

TOTAL

24000

Details of project cost

A) Land and building
Particulars

Area

Cost(Rs)

Land

250SqM

125000

Building

125SqM

325000

TOTAL

450000

B) Plant and machinery

A total cost of Rs3.85 Lakhs is calculated in this head.
C) Miscellaneous assets
A provision of Rs40,000/- is provided to this project
D) Preliminary and preoperative expenses
This include some charges like registration, trial run expenses, interest during
implementation etc. and are covered with a provision of Rs50,000/E) Working capital requirement (with a capacity utilization of 60%)
Particulars
Stock of Materials
Stock of
Goods

Period Margin
1 Month

Finished months

Promoters

Bank

Total(Lakhs)

30%

0.30

0.80

1.10

25%

0.14

0.41

0.55

1.39

1.65

Receivables

1 Month

25%

0.26

Working Expenses

1 month

100%

0.20

Total

0.90

0.20
2.60

Cost of project
Item

Amount(Lakhs)

Land and Building

4.50

Machinery

3.85

Miscellaneous assets

0.40

Preliminary & Preoperative Expenses

0.50

Contingencies @10% on fixed assets

0.84

Working Capital

3.50
13.59

3.50

Means of Finance
Promoters contribution

4.07

Loan frombank

Term loan6.92

9.52

Working capital2.6
Total

13.59

Assumptions
a) Utilities: the annual expenditure towards power and water is estimated to beRs
60000/b) Selling expenses: Rice flakes will be sold through retailers. For this commission
andtransportation charges will be there. Hence a provision @ 12.5% is provided.
c) Interest on term loan is calculated as 12% per annum assuming a repayment period of
4years. Interest on working capital is taken as 14% per annum.
d) Depreciation. It is calculated assuming @10% on building and @20% on plant and
machinery
Raw material required per annum
Product

Quantity(MT)

Rate/ price

Value(In
Lakhs)

Paddy

250

8900

22.25

Spices

25

4000

1.0
23.25

Sales Revenue at 100%

Product

Quantity

Selling price

Sales(In
Lakhs)

Roasted flakes

200

12000

24.00

Rice Bran

25

2000

1.0
25.0

Calculation of profit
No

Particulars

Year1

Year2

Year3

Year4

Installed capacity

250MT

Capacity utilization

60%

70%

80%

100%

Sales realization

24.5

31.85

34

38.25

Cost of production

Year1

Year2

Year3

Year4

Raw materials

13.95

16.28

18.60

20.93

Utilities

0.36

0.42

0.42

0.54

Salaries

2.88

2.88

2.88

3.17

Stores &Spares

0.20

0.20

0.20

0.20

Repairs and Maintenance

0.30

0.30

0.30

0.30

Selling expenses

1.91

1.99

1.99

1.99

Administrative Expenses

0.30

0.30

0.30

0.30

Total

Profit before
Taxation

19.9

Interest

and 4.6

22.37

25.48

28.76

9.48

8.52

9.49

Interest on Term loan

0.83

0.83

0.63

0.43

Interest on working capital

0.36

0.36

0.36

0.36

Depreciation (0.32+.77)

1.09

1.09

1.09

1.09

Profit before tax

2.32

7.20

7.43

8.40

Income tax @10%

0.23

2.28

2.08

2.52

Profit after Tax

2.09

5.04

5.2

5.88

Cash accruals

3.18

6.13

6.29

6.97

Break Even Analysis

No

Particulars

Sales

Variable cost

Amount(Lakhs)
25.0

Raw materials

13.95

Utilities (60%)

0.22

Salaries (60%)

1.73

Stores & Spares

0.2

Selling expenses(60%)

1.15

Admn.expenses(50%)

0.15

Interest on working Capital

0.36
17.76

Contribution

7.24
D

Fixed Cost
Depreciation

1.09

Utilities

0.14

Salaries

1.15

Selling expenses

0.76

Administrative expenses

0.15
3.29

Break-even point ( D/C)

Return on investment
Profit after tax/investment
=2.09/13.59*100
=15.37

SOME SUPPLIERS OF MACHINERIES

1) Indopol food processing industry pvt. Ltd Faridabad 121003
Ph 2276161
2) SP Engg.worksFazalGunj,Kanpur

45.44
%

BANANA FIBRE EXTRACTION AND PROCESSING

VARIOUS PRODUCTS, SCOPE IN KERALA

BANANA FIBRE EXTRACTION AND WEAVING

INTRODUCTION

Banana fibre is eco friendly like jute fibre. The technology of banana fibre extraction has
been developed in South India where in a good number of banana fibre extraction units
have been running very successfully. Some firms are exporting the banana fibre
products.Banana growing states of N.E.Region has adopted the technology from South
and started production of banana fibre and fabric. This can create a lot of employment
opportunities for almost all age groups.
MARKET POTENTIAL
The banana fibre is being used for weaving attractive pieces of clothes, rugs, sarees
etc. Besides, it is also being used to produce a variety of items such as hats, photo frames,
trinket boxes, gift bags, picture frames, hand bags, belts, baskets and sandals etc. Dresses
woven out of natural fibres are in great demand inside and outside India.

PLANT CAPACITY
Capacity utilization

: 70%

Average daily production envisaged

: 10 Kg cloth.

Working days/year

: 25 days in a month and 300

days in a year.

Annual production
Door Mat

: 1000 nos

Floor covering

:1000 nos

Screen

: 1600 Mt.

Durry

:1500 Nos.

RAW MATERIALS
The main raw material for the unit is banana tree which is abundantly available in the
State of Meghalaya, Mizoram, Arunachal Pradesh and Assam.

1. Cost of Banana Stem

: 1.40 lakhs

2. Misc. items

: 0.20 lakhs
Total : 1.60 lakhs.

SUGGESTED LOCATION :
Banana growing areas in Kerala Palakkad(Attappadi, Mannarkkad), Kottayam,
Kozhikkode
PROCESS
Banana Fibre Processing and Weaving :
The extraction of the natural fibre from the plant required certain care to
avoid damage. In the present experiments, initially the banana plant sections were cut
from the main stem of the plant and then rolled lightly to remove the excess moisture.
Impurities in the rolled fibres such as pigments, broken fibres, coating of cellulose etc.
were removed manually by menas of comb, and then the fibres were cleaned and
dried.This mechanical and manual extraction of banana fibres was tedious, time
consuming, and caused damage to the fibre. Consequently, this type of technique cannot
be recommended for industrial application. A special machine was designed and
developed for the extraction of banana fibres in a mechanically automated manner. It
consisted mainly of two horizontal beams whereby a carriage with an attached and
specially designed comb, could move back and forth. The fibre extraction using this
technique could be performed simply by placing a cleaned part of the banana stem on the
fixed platform of the machine, and clamped at the ends by jaws. This eliminated relative
movement of the stem and avoided premature breakage of the fibres. This was followed
by cleaning and drying of the fibres in a chamber at 20oC for three hours. This fibres
were then labeled and ready for lamination process.After extraction of fibre, weaving is
done in the looms as per normal process like any other material.

MACHINERY
The major equipment required are :
Sl.No.

Particulars

Nos.

1.

Banana
extractor

fibre

2.

Loom
complete
with all accessories

3.

Bobbin circle

4.

Charkha

5.

Bobbin

100

6.

Pirn

100

7.

Shuttle

8.

Misc. items

8
L.S.

INFRASTRUCTURE
The major infrastructural requirement are :
Covered
area
Power

: 1200
5

Sq.ft.
KW.

TOTAL CAPITAL REQUIREMENT

The total capital requirement including fixed capital and working capital is estimated at
Rs.1.70 lakhs as follows. Of this, the project cost comprising fixed capital and margin
money on working capital is Rs.1.55 lakhs.
(Rs. In lakh)
A

Fixed Capital :
Land and Building
Plant and Machinery
Misc. fixed assets.
Preliminary & Pre-op. Expenses:
Total(A) :

Own
0.90
0.30
0.10
1.30

B
.

Working Capital :
Raw materials & Packing materials
Finished goods
Working Expenses
Receivables

15 days
15 days
1 month
15 days.
Total (B) :
Total(A) + (B)
:

Note : Working capital May be financed as:

Bank Finance (65%)

Margin Money (35%)
Total :Rs.
C
.

Rs.
0.45
lakh
Rs.
0.25
lakh.
0.70 lakh.

Capital Cost of Project

Fixed Cost
:
Rs. 1.30 lakh
Margin Money for Working
Capital.
:
Rs. 1.25 lakh
Total : Rs. 1.55 lakh.

MEANS OF FINANCE
Promoters contribution (35%)
Term Loan (65%)

:
0.55 lakh
:
1.00 lakh.
Total :1.55 lakh

OPERATING EXPENSES
The annual operating expenses are estimated at Rs 4.99 lakhs as
given below :
(Rs.
in
lakhs)
1
.
Raw materials
:
1.60
2
.
Packing materials.
:
0.20
3
.
Utilities
:
0.40
4
.
Wages & Salaries
:
1.50
5
.
Rent, Insurance etc.
:
0.30
6
.
Other overheads.
:
0.35
8 Selling expenses @ 5% on
.
annual
Sales.
:
0.33
8
.
Interest on term loan @ 12.50% :
0.13

0.09
0.20
0.16
0.25
0.70
1.70

9
.
1
0
.

Interest on bank finance

for working capital @11%.

Depreciation 10% on M/c.

0.05

:
Total :

0.13
4.99

SALES REALISATION
S
l
.
N
o
.

Qnty.
Items

Rates(Rs)

Value (Rs)

( Lakhs)

1
.

Door Mat (13 x 22)

2
.
3
.

Floor Covering (4 x
6)
Screen

1600 Nos.

50/-

0.80

4
.

Durry (2.5 x 5.0)

1500 Nos.

150/-

2,25

Total

1000 Nos.
1000 Nos.

60/-

0.60

300/-

3.00

6.65

PROFITABILITY
Based on the sales realization of Rs 6.65 lakhs and the operating expenses of Rs 4.99
lakhs, the profit at rated capacity utilization would be Rs 1.66 lakhs per year. This works
out to be return on investment of 98%. The unit will break even at about 31% of the
targeted annual production.

HIGHLIGHTS
The major highlights of the project are as follows:
Total capital requirementRs.

1.70 lakhs.

Promoters
contribution

.
Rs

0.55 lakhs.

Rs.

6.65 lakhs.

Annual operating
expenses

Rs.

4.99 lakhs.

Annual Profit (Pretax)

Rs.

1.66 lakhs.

Annual
realization

Sales

Pre-tax return
sales

on
25%.

Break-Even Point.

31%.

No. of persons
employed.

8 Nos.

SUPPLIERS OF MACHINERY
Addresses of Machinery and Raw Material Suppliers :
Supplier of Banana Fibre Extractor :
Eco Green Unit
"Sugandavanam"
Sethumadai,
Pollachi
TK,
Coimbatore Dist,
Tamilnadu.
Pin - 642133.
PH
:
04253
244269
Mobile : 94433
66374

Krishi Vigyan
Kendra
Kalavacharla,
East Godavari
District
Andhra Pradesh
0883 2449871

Mother
India
No.12-B.I Floor,First Street,
Rajendra Nagar,Palayamkottai627
002,
Tamilnadu,India.
Call : + 91- 0462- 2561 325 /
2561
354
Fax : + 91- 0462- 4000037,
Mail
:
[email protected]
,
Click: welcome to mother india
Looms and other accessories are available in the local market

COMPUTER ASSEMBLING
Introduction :
Computers are now a days used for various applications in day to day life. A Micro
Enterprise unit proposed activity Computer assembling & Sales. For this computer parts
will be Purchased from dealer and assembling in the unit. Assembled Computers will be
marketed through the distributors appointed by the entrepreneur. The distributor will
also
inform the needs of the computer through the market Survey.
Raw Materials: Mother Board, ATX Cabinet, Mouse, Key Board,
Packing Material

Monitor,

Manufacturing process: Cabinet setting, Fix the SMPS (Switched Mode

Power Supply), Fix the Mother Board, Fix the Processor, Fix the Hard Disk, Fix the CD
Writer Installation of operating system & Soft Ware.
Fixed Assets
1.
Land & Building
2.
Plant and Machinery:
Sl.No
Items
1.
Screw Driver
2.
Multi meter
3.
Soldering Iron
4.
Soldering Station
5.
Other fitting Items
6.
Building furnishing&
Furniture Fittings
Total

Rented
Rate
250
1000
250
6000

Quantity
04
04
04
04

Value
1000
4000
1000
24000
5000
65,000
1,00,000

3. Raw Materials/Month
Sl.No
1.
2.
3.
4.
5.

Item
Mother Board
ATX Cabnet
Mouse
Key Board
Monitor

6.

Other Packing
Material
Total

Rate
5000
1500
500
1000
5000

Quantity
53
53
53
53
53

Value
2,65,000
79,500
26,500
53,000
2,65,000
25,000
7,14,000

4. Labour cost
Sl.No
1
2

Designation
System
Engineer
Distributor
Total

Rate/month
25,000

Nos.
02

Amount
50,000

10,000

01
03

10,000
60,000

5. Miscellaneous Expenses
Sl.No
1.

Items
Electricity
charges
Rent
Transporting
General
Expense
Total

2.
3.
4.

Amount
2, 000.00
5, 000.00
10,000.00
8, 000.00
25,000.00

6. Working Capital
Sl.No
Items
1
Raw Materials
2
Labour Cost
3
Misc. Expenses

Amount
7,14,000
60,000
25,000

Total
7,99,000
7. Total Cost of Project
Sl.No
Items
1
Land & Building
2
Machinary
&
Equipments
3
Working Capital
Total
8. Means of Finance

Amount
Rented
1,00,000
7,99,000
8,99,000

Sl.no
Items
1
Own fund 30%
2
Bank Loan 70%
Total

Amount
2,69,700
6,29,300
8,99,000

Assumption
1.
2.
3.
4.
5.
6.

Installed Capacity
Shift
Capacity Utilisation
Rate of Loan Interest
Selling Expenses
Depreciation
Machinary
Repair& Maintenance
Insurance

- 900 Nos.
- 01
- 70
- 13%
- 5%
- 10 %
2%
- 2%

ie. 10,000/ie. 2,000/ie 2,000/-

Profitability Statement
Sl.No.

Particulars

1.

No. of working days

300

2.

No. of shifts

01

3.

Installed Capacity

900

4.

Capacity Utilisation

70%

5.

Production

630unit

6.

Selling Price /unit

16500/-

A. Sales

10,39,5000/-

B. Cost of Production
Sl.No.
1.
2.
3.
4.
5.
6.
7.

Particulars
Raw Materials
Salaries
Power Charges
Rent
Depreciation
Insurance
General Expense
Total

94,82,000

C. Gross Profit (A-B)

9,13,000

D. Selling Expense 5%

5,19,750

E. Interest on Loan

81,809

F. Total of( D & E)

6,01,559

G. Net Profit before tax (C-F)

3,12,441

H. Income Tax
I . Net Profit
J. Depreciation
K. Cash Surplus (I+J)

Amount
85,68,000
7,20,000
24,000
60,000
12,000
2,000
96,000

11,000
3,00,441
12,000
3,12,441

LIGHT ENGINEERING
(NUT, BOLT, WASHER, RIVETS, etc.)
1. Introduction
The project is envisaged for establishing a machining unit for the
manufacture of simple fastening components such as screws, bolts, nuts, washers, car
clips, rivets and so on. These items are required by all types of industries including
automobiles.
2. Market:
The products have a good demand in local market. Transportation industries like
bicycles, automobiles, body builders, aircrafts etc, building activities such as construction
areas, electrical industries and other heavy and

light industries are the common

customers. Hence the marking of these products will not be a tough

. 3. Manufacturing Process
An unfinished work piece requiring machining will need to have some
material cut away to create a finished product. A finished product would be a work piece
that

meets

the

specifications

set

out

for

that

work

piece

by engineering

drawings or blueprints. A lathe is a machine tool that can be used to create that diameter
by rotating a metal workpiece, so that a cutting tool can cut metal away, creating a
smooth, round surface matching the required diameter and surface finish. A drill can be
used to remove metal in the shape of a cylindrical hole. Other tools that may be used for
various types of metal removal are milling machines, saws, and grinding machines. Many
of these same techniques are used in woodworking.the "traditional" machining processes,
such

as turning, boring, drilling, milling, broaching, sawing,shaping, planing, reaming,

and tapping, or sometimes to grinding.

FINANCIAL ASPECTS
1.

Land

Free hold

2.

Building

Rented

3.
Sl.N
o
1
2
3
4
5
6
7
8
9
10

4
.
1
2
3

5
.
1
2
3

Plant & Machinery

Item
Qt
Lathe Machine
1y
No
Tread rolling
machine
11.
Stand
Drill
N0
No
Hand Grinders
2
.
No
Hand Driller
3.
No.
Hammer & Tools
LS1.
Rivette Machine
No
Cutting
1
Machine
No
Sheet
Cutters
2.
No
Transportation, Errection,Sales Tax etc. .
.
Total

Rs.
97,500
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.

125,000.00
Rs.
9,500.00
13,000.00
16,000.00
6,000.00
8,000.00
8,000.00
3,750.00
3,250.00

Rs.

3,00,000.00

Rs.
Rs.
Rs.

56,250.00
33,750.00
10,000.00

Rs.

1,62,225.00

Raw Material Required per month

M S
Rods Sheet
Metal
55/= items
Other

1675 kg & Rs. 55/=

1100 kg & Rs.
LS
750 Kg Kg

Total
Man Power per month
Manager
Skilled Workers

1
2

Helper

Total

N
o
N
o.
N.
o
.

Rs.
Rs.

8,000.00
16,000.00

Rs.

4,500.00

Rs.

28,500.00

6
.
1
2
3

Other Expenese per month

Power
Rent
Postage & Telephone

Rs.
Rs.
Rs.

2,000.00
3,000.00
500.00

Miscellenious expenses

Rs.

2,500.00

Total

Rs.

8,000.00

7
.
1
2
3
4
5

Working Capital Requirement

Stock
of
Raw
Materials
Raw
Materials in
Process of Finished
Stock
Goods Sale
Credit
One Month working expenses

30
2
3
10

Day
s
Day
s
Day
s
Day
s

Rs.
1,95,150.00
Rs.
13,010.00
Rs.
19,515.00
Rs.
65,050.00
Rs.
36,500.00
Rs.
3,29,225.00

Total

8.

Production per Month

2500 Kgs of Nuts , Bolts , Washer etc @ Rs.90 / Kilo

9.

Total Project Cost

1
2
3
4

Land
Building
Plant & Machinery
Working Capital
TOTAL

Rs.

Rs.
Rs.

2,25,000.00

Free hold
Rented
3,00,000.00
3,29,200.00

Rs.
6,29,200.00

MEANCE OF FINANCE

Promoters Contribution

Term Loan

Rs.

2,21,000.00

Working Capital Loan

Rs.

2,30,400.00

Rs.

6,292,200.00

TOTAL

Rs.

1,88,800.00

11.
Cost of Production and Profitability Statement for a normal year of
operation
Year
Number of Working Days
Number of Shift
Installed Capacity
Capacity Utilisation
Production
A. Net Sales

1st
300
1
4500000.00
60
2700000.00
2700000.00

B. Cost of Production
Raw materials
Salaries
Wages

1951500.00
96000.00
246000.00

Power Charges
Repairs and Maintenance
Depreciation&insurance
Total
C.Gross Operating Profit
D. Administrative and Selling Expenses
Administrative Expenses&
Selling Expenses
E. Financial Expenses
Interest on Term Loan
Interest on Working Capital Loan

24000.00
12000.00
39000.00
2368500.00
331500.00
72000.00

26831.00
32256.00

F. Total D & E
G. Net Profit
H. Provision for taxes
I. Net profit
J. Withdrawals
K. Depreciation
L. Cash Surplus

131087.00
200413.00
4041.00
196372.00
0.00
36000.00
232372.00

12. Break- Even Point

42.37%

13.

3.1

DSCR

14.Return on Investment

31%

METAL BASED INDUSTRIES

AGRICULTURAL IMPLEMENTS, CUTLERIES & HAND
TOOLS
Introduction

Metal based industries have greater development in every field such as

industries,agricultural implements, building materials etc. Large number of agricultural
implements, cutlries, hand tools etc have good demand and scope.
Raw Materials :
High carbon steel, MS items, Welding rod, handles, other items and consumables
are locally available.
Manufacturing process :
The process includes cutting, bending, drilling, welding etc by using machinaries and
assembled together necessary handles are attached and kept for marketing.
Marketing:
Agricultural implements and hand tools will have good demand and scope. The
products can be marketed trhough out the state and neighbouring states.
Installed Capacity ( in Nos)
1. Agricultrual Implements -

20,000

2. Cuttleries

40,000

3. Hand Tools

20,000

Fixed Assets
1.
2.
S
l
.
N
o
1
.
2
.
3
.
4
.
5
.
6
.

Land & Building

Rented

Machinary & Equipments

Items

Rate

Quantity

Welding Set

01

Buffing Motor

01

Drilling Machine

01

1 Hp Motor

01

Bench Grinder

01

Hand Drilling
Machine

01

Value

7
.
8
.
9
.
3
.
4
.

Hand Grinder

01

Bench vise

01

Pannel Board &

Electrification

Total Sl No.1
+9
Sub-Total

Miscelleneous
Assets(3)
Preliminary &
Pre - Operative
Expenses(4)
Total Fixed
Capital
(2+3+4)

1,50,000

25,000
5,000

1,80,000

Working Capital
Recurring Expenses /Month

1. Requirement for Raw Materials at 50% of capacity

utilization

60,000/-

2. Wages

16,000/-

3. Utilities & Other Expenses

14,000/-

Total

90,000/-

4. Working Capital requirement

1,50,000/-

(Two months raw Material cost and one month work expenses are estimated as
Working Capital)
5. Total Cost of Project
Sl.No
1

Items
Land &
Building
2
Machinary
&
Equipments
3
Working
Capital
Total
6. Means of Finance
Sl.no
1
2
3

Items
Own fund
Term
Loan
Working
Capital
Total

Amount
Rented
1,80,000

1,50,000
3,30,000
Amount
1,14,000
1,26,000
90,000
3,30,000

7.Monthly Profitability Statement

A. Sales

1,10,000

B. Cost of Production
Sl.No.
1.
2.
3.
4.
5.
6.

Particulars
Raw Materials
Wages
Utilities & other expenses
Repairs 2% on Machinary
Depreciation 10% of Fixed Assets
Insurance
Total

C. Gross Profit (A-B)

18,167

D. Financial Expenses
Interest on Loan 13%

2,340

E. Administrative Expenses
1% on sales

1,100

F. Selling Expenses 3% sales

3,300

G. Total of(D+ E+F)

6,740

H. Net Profit before tax (C-G)

11,427

I . Annual Profit

1,37,124

J. Return on Investment

41.55%

Amount
60,000
16,000
14,000
250
1,458
125
91,833

MANUFACTURE OF PAPER PRODUCTS

(PAPER CUPS)
1. INTRODUCTION:
A paper cup is a disposable made out of paper and after lined with
plastic or wax prevent liquid from leakage out or soaking by paper. Paper cups are made
from renewable resources. The cups should be made from food grade paper which is
hygienic in nature. It is capable for holding both hot & cold liquid for longer time. The
uses of paper cups have wide range. Give the rapid changes in life style; it is the right
time to enter the consumer segment to popularize the home consumption of paper cups.
There are several inherent advantages in using Paper Cups as compared
to cups of other materials. These Paper Cups are gaining popularity all across the globe
as a beautiful and stylish way of minimizing exposure to food borne infections.
Paper Cups have numerous advantages like; they are manufactured in a
very simple process using Food Grade Raw Materials with least waste and are easiest to
recycle. They are ideal for individual servings at all kinds of parties, functions, picnic
occasions, marriages, chat, tea & food joints, etc. Non-toxic in nature, the shapes and
surface designs on these paper cups are attractive and present an inviting look. These
paper cups can also be custom printed with an outlet's logo, brand punch line or
advertising message.
2. MARKET POTENTIAL
A wide range of paper cups are now produced and marketed in India.
The paper cups are reckoned to be a high potential business for India. Manufacturing
Paper Cups is the purpose of satisfying needs and wants of Consumers is the market
place. Developing a strategy for delivering an effective combination of food grade
quality and cost effective features for consumers within the target market is done.
The prospects of paper cups depend on the value of customers who
utilize it. But in our country paper cups are used by all the people as it is easy to use,
hygienic and eco-friendly. Hence, per capital consumption has increased and the demand
for it is recognized. While the demand for paper cups has shown a good growth, the
company will be successful in strategizing its market operations.
As paper cups are a product of daily consumption and necessity, their
marketing will not be a problem as the consumers are aware of the advantages of using
paper cups. The raw materials are indigenously available and the manufacturing process
is also simple.
Paper Cup find potential market in IT companies, Educational
Institutions Canteens, Industrial Canteens, Restaurants, Fast Foods, Catering People, Tea
Shops, Paper Product Dealers and Super Markets.
3. MANUFACTURING PROCESS OF PAPER CUPS:

We have proposed to use the Automatic Paper Cup Forming Machine for
our manufacturing process of Paper Cups. The general structure of paper cup forming
machine is composed of three stages. They are:
1. The first stage: mainly finishes transmission of the paper cup's sidewall paper,
shaping side-wall and transferring them to the second stage after shaped.
2. The second stage: transmission of the cup-bottom paper, shaping cup bottom,
joining the shaped side-wall and cup bottom, automatic transmission and discharging of
the shaped cup, and curling the shaped cup's edge.
3. The third stage: mainly includes 45 degree angle separating, preheating,
curling bottom, curling rim and so on mechanisms, which are the important parts in
finishing paper cup.
4.

BASIS AND PRESUMPTION OF THE PROJECT:

i. The process of manufacture is on the basis of eight hours per day with three
hundred working days in a year.
ii. Labor and wages mentioned in profile are as per prevailing local rates.
iii. Interest rate at 15% considered in the project
iv. The Promoter contribution will be 25 % of the total project cost.
vi. The capacity of the plant nos. of paper cups per day.

5. INSPECTION AND QUALITY CONTROL:

Plant will strictly adhere to the International FDA standards and Indian BIS
standards in the process of manufacturing Paper Cups from procuring high quality food
grade raw materials to hygienic methods of packaging.
6. PRODUCTION CAPACITY PER ANNUM:
Quantity: 73000 nos. of paper cups per day 22,000,000 nos. of paper cups per annum
(300 days)
7. POLLUTION CONTROL
The technology adopted for making paper cups is eco-friendly. Cup forming
process is totally automatically done by the machine, only feeding and packaging
involves manual work. The scrap papers created out of this manufacturing process also
can be sold for recycled paper converters. Hence there is no chance of any pollution out
of this industry.

FINANCIAL ASPECTS
A. FIXED CAPITAL
i.

Land and building

Covered area (500 Sq. meters) rented: 5,000

ii.

Machinery and Equipments

Sl No

Description

Quantity

Rate

Value

Machine

8,50,000

8,50,000

Dyes

50,000

1,50,000

and

Office Equipments
Furniture

50,000

50,000

Electrification
Installation

and

10,000

10,000

Total

10,60,000
10,000

iii. Pre Operative expenses

10,70,000

Total Fixed Capital(ii+iii)

B.

WORKING CAPITAL

1. Staff and Labour (per month)

Sl
No.

Description

No.

Salary

Total

Sale
Cum
Production Manager

15000

15000

Skilled Worker

10,000

10000

Unskilled Worker

7000

7000

Total

32000

Add Pre Requisite@ 15%

4800

Total

36800

Approximately

37000

2.

Raw Materials Requirements (Per Month)

Sl
No.

Description

Quantity

Rate

Value

Printed PE Paper

2836 Kg

92

260912

Bottom Reel

1134 Kg

78

88452

Packing Material

25000

Total

374364

Approximately

375000

3. Utilities (Per Month)

Sl
No

Description

Amount

Power

5000

Machine
Grease

Oil

&
1000

Total

6000

4. Contingent Expenses(Per Month)

Sl
No.

Description

Amount

Rent

5000

Postage
Stationary

Transportation
charge

10000

Maintenance Charge

2000

Advertisement

1000

Phone

2000

Total

20500

and
500

5. Total Working Capital (Per Month)

Sl.
No

Description

Amount

Raw Material

375000

Utilities

6000

Salary

37000

Contigent

20500

Total

438500

6. WORKING CAPITAL FOR 3 MONTHS

Working capital for 3 months = 3 * 438500
= 13,15,500
TOTAL CAPITAL INVESTMENT
Fixed Capital

: 10,70,000

Working Capital for 3 months

Total

: 13,15,500
: 23,85,500

Financial Analysis
a. Cost of Production (Per Year)
Sl.
No

Description

Amount

Total Recurring Cost

5262000

Depreciation on Machine @ 10%

85000

Depreciation on Dyes @ 25%

37500

Depreciation on Furniture @ 20%

10000

Interest on Total Capital Investment

@ 15%

268369

Total

5662869

Approximately

5662900

b. Turnover (per year)

Sl
No

Description

Qty

Rate(Rs)

Value(Rs)

Paper Cups

22,000,000 0.3

6600000
Total

c. Net Profit(Before Taxation) (Per Year)

Turn Over

: 6600000

Cost of Production (-) : 5662900

Total

: 937100

d. Net Profit Ratio

Net Profit Ration =

x 100

= 14.20%
e. Rate of Return on Total Investment
=

x 100

= 39.28%
f. Break Even Point
Fixed Cost
Sl.
No

Description

Amount
(Rs)

Rent for one Year

60000

Total Depreciation

132500

Interest on Total investment

268369

40% of Salary and Wages

177600

40%
of
Utilities
Contingents
Total

and
127200
765669

Approximately

765700

6600000

B.E.P =

x 100

= 44.96%
Address of Machinery and Equipment Suppliers
1.

AKR Industries
No. 36 A&B New Colony, North Street,
Mannarpuram ,Trich Pin-620020

2. Sri Jata Machine Tech

No. 24/1, SIDCO Industrial Estate, Kurichi Post Pollachi Main Road,
Coimbatore - 641021, Tamil Naduwww.papercupmachineries.in
3. Future Enterprises
No.
9
AA,
Anna
Nagar
Coimbatore - 641023, Tamil Naduwww.futureenterprises.co.in

Podanur,

List of Suppliers of Raw Material

1. Sri Jata Machine Tech
No. 24/1, SIDCO Industrial Estate, Kurichi Post Pollachi Main Road,
Coimbatore - 641021, Tamil Naduwww.papercupmachineries.in
2. Sagun Papers
No.
100,
Velayutham
Sivakasi - 626123, Tamil Nadu

Road

Near

3. Indo China Paper And Boards

No.
54,
Industrial
Sivakasi - 626123, Tamil Naduwww.indiamart.com/icpaper

LIC

Building,

Estate ,

Project Profile on Curry and Rice Powder

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

Project Profile on Curry and Rice Powder

Introduction:
Spices play an important role in enhancing the flavor and taste of the processed foods. India
produces almost all the known spices and is the largest exporter of this commodity. Although
spices are traded chiefly in an unprocessed form, a small yet significant quantity enters
international trade as spice powders. Curry powder is the foremost of those blends or mixes and
sometimes consists of 20 or more spices designed to impact the characteristic flavor of an Indian
curry which is appreciated all over the world. Apart from the overseas market, processed curry
powder is becoming popular in the internal market also. Hence the demand for unadulterated
spices and curry powder in attractive handy packages is fast emerging.
Kerala The Gods own country and the Spices Garden of the world has seen tremendous
growth in spices related consumer industry recently. Although the struggle of poor consumers for
getting genuine food items is still at large. To enhance the flavor and aroma of foods spices are
used whole or in pieces, as in pulaos and biriyanis, or in powdered or ground form. While freshly
ground masalas (mixed curry spices are preferred to powdered masalas), owing to the shortage of
domestic labour, there is a definite trend today towards using spices mainly in powdered form in
many combinations of curry powders. Curry powder, chilli powder, turmeric powder, spices
powder etc are greatly consumed for preparing a variety of vegetable and non-vegetable food
items. The quality of these products increases the taste and quality of food products. The
consumers around the world have always opted for unadulterated food items irrespective of their
cost. Considering the recent trend of change followed by the reasons of fast life of people, paved
the way for the emergence of a lot of entrepreneurs in the food processing field. Ready to use rice
powder will simplify the job of households. Todays fast life style of people will increase the
demand of ready to use food products.
Coconut oil is an important cooking medium in Southern parts of the country especially in Kerala
State. Besides, the oil has varied industrial applications. It is used in the manufacture of toilet
soaps, laundry soaps, surface active agents and detergents, hair tonics, cosmetics, etc. It is used
throughout the country as hair oil as it helps growth of the hair. As massage oil it has a cooling
effect on the body. Owing to these qualities coconut oil has a potential market in the country.
Promoter:
The promoter should have enough knowledge and experience in the proposed field and can
manage the whole unit successfully. He/She will get all encouragement for the unit from the
native people as such the unit will be a blessing to them.
Location of the unit:
The proposed unit may be set up in a building owned by the promoter in Thrissur Corporation
area, where in all infrastructure facilities are available.

Consumable Materials:

The main consumables required for the unit Rice, Chilli and coriander, herbs, copra, etc. is
available in the market. The annual requirement of raw materials is assessed and given in the
annexure.
Employment:
The Unit can provide employment to 4 persons directly. The annual expenditure on labour is
assessed and given in the annexure.
Cost of Service and Profitability:
The estimate of this project is on the basis of the following:
1) The unit will function for 300 days in a year.
2) The capacity utilization has been assumed at 60% in the first year and 65 %
afterwards.
3) The price of the raw material and services are taken at the prevailing market rates.
4) Wages and salaries have been increased by 5% every year.
5) Repairs, insurance, telephone charge, etc., are taken at lump.
6) No contingency provision is made since the costs are taken at prevailing market price.
7) Depreciation has been calculated on Written down Value Method.
8) Income tax has been calculated at the rate applicable to proprietary concern
Project Cost
Sl.
No.
1
2
3
4
5

Amount

Particulars
Land
Building
Plant & machinery
Preliminary expense
Working capital

Free Hold
Free Hold
396400
47000
2,22,100.00

Total

Rs. 665,500.00

MEANS OF FINANCE
Percentage of Own capital under the Scheme = 25
Sl
No

Particulars

Amount
Rs.

Own capital

1,66,375.00

Term loan from bank

3,32,550.00

Working capital loan

1,66,575.00

Total

Sl. No.

Rs. 6,65,500.00
MACHINERY/ EQUIPMENTS

Description

Rate

Qty

Amount

b
c

Multi mill Pulveriser one side double head 12" and other
side single head 12"
10 HP Crompton motor with starter, switch and capacitor
12" disintegrator with stand

Uruli Roaster capacity 15 Kg / batch with electric motor

Parts of flour mill -motor pulley, belt, rail, foundation bolt

and belt guard
Single head pulverisor
4 Bolt oil expeller
Electronic weighing balance
Cubical control panel with all components
VAT 5 % for item no1,3,4,5,6,7,8
VAT 14.5 % for item 2,9

f
g
h
i

59500
27000
36000

1
2
1

59,500.00
54,000.00
36,000.00

28500

28,500.00

30000
26000
92000
14500
29500
14325
12107.5

1
1
1
1
1
1
1

30,000.00
26,000.00
92,000.00
14,500.00
29,500.00
14,325.00
12,107.50
3,96,433.00

TOTAL

Sl. No.
1
2
3
4
5
6
7
8

DIRECT MATERIALS
Requirement @ capacity utilisation of
60 %
Rate
Quantity
Description
Unit
Rs.
in Kg
Rice (kg)
Kg
25
1930
Chilly (kg)
Kg
80
605
Coriander (kg)
Kg
80
605
Turmeric
Kg
85
605
Spices
Kg
170
605
Herbs
Kg
400
605
Packing Materials (kg)
Kg
80
60
Copra
Kg
102
377.5

Amount/month
48,250.00
48,400.00
48,400.00
51,425.00
1,02,850.00
2,42,000.00
4,800.00
38,505.00
5,84,630.00
T
70,15,560.00

TOTAL PER MONTH

TOTAL PER ANNUM Rs.
INDIRECT MATERIALS
Sl.
No.
1

Description
Coolant, Lubricant etc.
TOTAL PER MONTH

Unit

Rate

L.S

Quantity

2000

TOTAL PER ANNUM

DIRECT LABOUR
Sl. No.

Description
Wages: Skilled Worker

Nos
1

Monthly
Rate
8500

Amount
2,000.00
2,000.00
T
24,000.00

Amount
8,500.00

Semiskilled Worker
Unskilled Worker

1
1

7500
7000

TOTAL
TOTAL PER ANNUM

7,500.00
7,000.00
23,000.00
2,76,000.00

DIRECT EXPENSES
Sl. No.
1
2

Description
Power & Fuel
Cost of Defective/Rejects
TOTAL PER MONTH
TOTAL PER ANNUM

Expense per
Month
8,600.00
3,000.00
11,600.00
1,39,200.00

INDIRECT EXPENSES
Sl. No.
1
2
3
4
5
6
7
8
9

Description
Advertising Expenses
Insurance
Lighting
Rent
Repairs & Maintenance
Telephone charges
Travelling expense
Stationery & Printing
Transporting charges
TOTAL PER MONTH
TOTAL PER ANNUM

WORKING CAPITAL ESTIMATE

Requirement
Sl. No
Description
in Days
1
Raw Material Inventory
6
2
Work in Progress Inventory
1
3
Finished Goods Inventory
1
4
Receivable in Days
1
5
Labour Charges
3
6
Other Expenses/ Overheads
3
TOTAL

Expense per Month

5,000.00
1,200.00
250.00
500.00
1,000.00
1,500.00
1,500.00
800.00
2,500.00
14,250.00
171,000.00

Amount
(Rs.)
1,40,,791.00
23,465.00
23,465.00
23,465.00
3,780.00
3,102.00
2,18,068.00

REPAYMENT SHEDULE OF BANK LOAN

Rate of interest

14.00

(%)

Repayment

Balance

Interest

Total

499125
427821
356518

71304
71304
71304

427821
356518
285214

71125
60965
50804

142429
132268
122107

285214
213911
142607
71304

71304
71304
71304
71304

213911
142607
71304
0

40643
30482
20322
10161

111947
101786
91625
81464

Amount

499125

Year

Principal

Year1
Year2
Year3
Year4
Year5
Year6
Year7
Depreciation
Year

1
2
3
4
5
6
7

Machinery
Cost

Depn

443400
399060
359154
323238
290914
261823
235641

44340
39906
35915
32324
29091
26182
23564

Value in Rs. in
third year

Average
Rate(in Rs)

Value in Rs. at
60%

Volume of
Sales at 60%
(in Kg)

Volume of
Sales at 100%
(in Kg)

SALES REVENUE AT DIFFERENT LEVELS OF OPERATION

34740

20844

36

750384

875448

Rice Powder
Chilly Powder

10890

6534

102

666468

777546

Coriander Powder

10890

6534

102

666468

777546

Turmeric Powder

10890

6534

106

692604

808038

10890

6534

205

1339470

1562715

Curry powder
Herbal Powder

10890

6534

502

3280068

3826746

Coconut oil

5285

3171

153

485163

566024

Sl
No

Description of
Revenue

Total

89190
53514
BREAK EVEN ANALYSIS 3rd year

7880625

9194063
70 % Cap.

A.

Variable cost
Direct Raw materials
Direct Labour
Direct Expenses
Total
B. Fixed & semi-variable cost
Consumable Stores & Indirect Material
Indirect Labour
Indirect Expenses
Financial expense
Total
Selling price (S.P)
Variable cost (V.C)
Difference (Contr.)
Break Even Point =

BEP=

8184820
304290
162400
8651510
24000
112455
171000
50804
358259

9194063
8651510
542553

Fixed & semi variable cost X capacity X 100

Difference in S.P and V.C X 100
46.22 %

COST OF PRODUCTION & PROFITABILITY ESTIMATE

Sl
no

L
II

III

Particulars
1
No of working days
300
No of shifts
1
Production capacity in No
89190
Capacity utilisation(%)
60
53514
Actual production
Sales in Lakhs
78.806
Cost of production
(all values in Lakh Rupees)
Raw materials&
consumables
70.3956
Power& fuel
1.032
Repair& maintenance
0.144
Salaries& wages
3.780
Insurance
0.060
Depreciation
0.443
75.855
Sub total
Selling &Administration Expense
Telephone charges
0.180

Travelling expense
Transporting
Advertising
Sub total
lV Financial Expense
Interest on bank loan
Sub total
V Total (II+III+IV)
VI Operating profit
VIII Pre-expense written off
IX Taxation
X Net profit
XI Withdrawals
XII Net cash accruals
Xlll Cumulative Surplus

0.300
0.180
0.120
0.780
0.711
0.711
77.346
1.460
0.008
0.000
1.452
0.145
1.307
1.307

DEBT SERVICE COVERAGE RATIO

Sl no
1
2
3
4
5
6
7
8
9

Particulars
Net profit
Depreciation
Interest on loan
Pre expense written off
Total
Repayment of term loan
Interest on loan
Total (Rs in lakhs)
Debt Service Coverage
Ratio

1.452
0.443
0.711
0.008
2.615
0.713
0.711
1.424
1.836

CONCLUSION:
On examining the technical aspects like availability of raw materials, availability of skills and
opportunity of market, it can be stated that the project is technically feasible. The income
generated is enough for the repayment of loan and for the better prospects of the unit.

Project Profile on Bakery Products

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

Project Profile on Bakery Products

Introduction
The bakery industry plays an important role in industrial activities of food processing industry in
the country. In the modern times,it provides nutritious food to go large number of households in
cities. The indian Bakery sector consists of some of the foods like cakes, breads, buiscuts, and
chips etc..Since the development of new food technology, a variety of products are prepared in the
Bakery.
Promoter:
The promoter of the unit is well experienced in manufacturing and marketing bakery products.
He can manage the whole unit successfully using his good social contacts and great managing
power.
Location of the unit:
The promoter proposes to start the unit in free hold building i.in Thrissur District. The location is
well suited for the proposed activity and all infrastructure facilities are available.
Market potential:
Now a days, Bakery products are an item of mass consumption. In view of its low price and with
rapid growth and changing eating habits of people, bakery products have gained popularity among
masses of the sector overall. The growth rate of bakery products has been tremendous in both
urban and rural areas. Increased number of working women, Change in Indian meal pattern,
increased income, urbanization etc., has increased the demand for bakery products.
Quality control & standard:
Strict quality control norms and hygienic conditions as per Health regulations will have to be
maintained at every stage in the production process. All ingredients used and expiry date will
have to be clearly spelt out on each packed snack food.
Manufacturing process:
Mixing of ingredients except flour in required proportion in paste form.

Preparation of dough by mixing with flour.

Placing dough in moulding and cutting machine

Frying
cooling& packing

Cakes:
To make cakes, wheat flour and baking powder along with cream, sugar and ghee is mixed
thoroughly till it becomes fluffy. Then mixture of beaten eggs is added to it along with caramel
colour and chopped fruits before the mixture are poured into cake pans and baked for around 3040 minutes.
Raw Materials:
The major raw material required is flour, maida, etc .Other items are yeast, sugar, ghee, milk
powder, salt, edible colour and flavours. All the materials are locally available.
Cost of the Project
Particulars

Amount

Land
Building

Owned
Owned

Machinery
Working capital
TOTAL

3,50,000.00
1,86,000.00
5,36,000.00

MEANS OF FINANCE
Particulars

Amount

Promoters Contribution
Term Loan From Bank
Working Capital Loan from Bank

89,700.00
2,97,500.00
1,49,000.00

Total

5,36,000.00

WORKING CAPITAL REQUIREMENTS

Sl.No.
1
2
3
4
5

Item
Stock of raw material
Work in process
Stock of finished goods
Receivable
Working expense

Period
25 days
2 days
3days
15 days
30 days

Total
rounded to

Amount(Rs)
81,750.00
6,540.00
9,810.00
49,050.00
39,150.00
1,86,300.00
1,86,000.00

PRODUCTION AND SALES AT 60% CAPACITY(MONTH)

No.
1
2
3
4
5

Item
Fried Chips
Pakka Vada, Mixture, Sweet fry etc
Cake of different types
Puffs Cuttlet Samosa
Other food items
Total

Quantity
100
70
150
15000
7500

unit
kg
kg
kg
Nos.
Nos

rate
75
70
300
5
5

Amount
7,500.00
4,900.00
45,000.00
75,000.00
37,500.00
1,69,900.00

COST OF PRODUCTION AND PROFITABILITY ANALYSIS

Particulars

1st Year

No. of working days

No.of shifts
Installed Capacity
Capacity Utilization
Production
Sales
Cost of Production
Raw materials
Salaries
Wages
Power Charges
Repairs & Maintenance
Insurance
Depreciation

300
1
27,74,000.00
60%
20,38,800.00
20,38,800.00

Total
Gross Operating Profit
Administrative & Selling expenses
Financial expenses

14,26,100.00
6,12,700.00
70,200.00

1. Interest on Term loan

2. Interest on WC loan
Total
Net Operating Profit
Income Tax
Net Profit
withdrawals
Add Depreciation
Cash Surlpus

9,81,000.00
42,000.00
3,24,000.00
33,600.00
7,000.00
3,500.00
35,000.00

39,420.00
20,860.00
1,30,480.00
4,82,220.00
13,000.00
4,69,220.00
1,00,000.00
35,000.00
4,04,220.00

BREAK EVEN ANALYSIS

Sales
Variable cost
Contribution
Fixed cost
BEP (%)

20,38,800.00
14,14,660.00
6,24,140.00
1,41,920.00
23 %

CONCLUSION
On examining the technical aspects like availability of raw materials, availability of skills and
opportunity of market, it can be stated that the project is technically feasible and economically
viable.

Project Profile on Steel Furniture

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

Project Profile of Steel Furniture

Introduction:
The unit is a proposed micro enterprise propose to manufacture steel fabricated furniture which
are required both for domestic and commercial establishments. With the growth of industrial,
commercial and household activities the demand of office automation, equipments and steel
furniture has increased considerably. Wooden furniture after some period is worn out due to
defects in wood quality and normal wear and tear. Due to elegant appearance, durability and
innovative designs, steel furniture is becoming popular in modern society. Steel furniture is
preferred over other kinds of furniture due to its durability, fold ability (in many cases) and easy
transportability. These items find their extensive use in industrial, commercial and household
activities. These steel products are the only replacement of wood in terms of cost and durability.
These products will be varied in shapes and sizes as per the demand. Fabrications of steel related
items are well established business and no sophisticated know-how is required. Though a number
of units are carrying out the above activities, still there exists a gap in the demand supply curve.
Location:
The proposed unit is to be set up in a rented building in Thrissur, where in all infrastructure
facilities are available.
Process of manufacture:
The main process steps are
(A). Cutting or shearing of the materials to size.
(B). Welding the sized material as per design of product to be made.
(C). Grinding edges and surfaces to smoothness.
(D Finishing process to the article produced.
Raw Materials and Consumable Materials:
The main Raw materials & consumables required for the unit are stainless steel square and round
pipes of various sizes, stainless steel sheets, welding electrodes, cutting blades, screws; cutting
fluid, cotton waste etc. are available in the market.
Employment:
The Unit can provide employment to 4 persons directly.

Assumptions
The estimate of this project is on the basis of the following:
The unit will function for 300 days in a year.
The capacity utilization has been assumed at 60% in the first year and 65 % afterwards.
The price of the raw material and services are taken at the prevailing market rates.
Wages and salaries have been increased by 5% every year.
Repairs, insurance, telephone charge, etc., are taken at lump.
No contingency provision is made since the costs are taken at prevailing market price.
Depreciation has been calculated on Written down Value Method.
Income tax has been calculated at the rate applicable to proprietary concern.

1)
2)
3)
4)
5)
6)
7)
8)

CONCLUSION
On considering the various aspects of the project both financially & technically it can be seen that
the above scheme will be a great success. Further it is certified that the project report is
technically feasible and economically viable.
MACHINERY AND EQUIPMENT

Sl No
1

Items
Bench drill with motor

Qty
1

Unit
Nos

Rate
18,800.00

Amount
18,800.00

Welding set 300amp

Nos

11,000.00

11,000.00

3
4
5
6
7
8
9
10
11

Cut off
Hand drill
Hand drill 2.20
Grinder
Welding cable set
MMA welding set
Ring and spanner set
Bench grinder
Screwdriver set

1
1
1
2
2
1
1
1
1

Nos
Nos
Nos
Nos
Nos
Nos
Nos
Nos
nos

10,800.00
3,800.00
9,200.00
2,400.00
2,000.00
15,200.00
4,000.00
13,000.00
2,800.00

10,800.00
3,800.00
9,200.00
4,800.00
4,000.00
15,200.00
4,000.00
13,000.00
2,800.00

12
13
14
15
16

Cut off meter saw

Compressor
Buffing motor
Straight sander
Pipe bending machine

1
1
1
1
1

Nos
Nos
Nos
Nos
Nos

16,000.00
13,000.00
22,000.00
6,000.00
94,500.00

16,000.00
13,000.00
22,000.00
6,000.00
94,500.00

17

2Hp Motor

Nos

9,200.00

9,200.00

TOTAL

2,58,100.00

Requirements Of Raw Materials Per Month(60% Capacity Utilisation)

Sl No
1
2
3
4

Items
Stainless steel pipe

Qty
350

Unit
Kg

Rate
210.00

Amount
73,500.00

SS sheets and strips

Glass sheet
Other essential items

150
200

Kg
Sq ft.

150.00
120.00

22,500.00
24,000.00
28,400.00

TOTAL

1,48,400.00

MAN POWER REQUIREMENT

Sl No
1
2
3

Designation
Skilled worker
Semi Skilled worker
Un skilled worker
TOTAL

No
1
2
1

Monthly Salary
10,000.00
9,000.00
8,000.00

Amount
10,000.00
18,000.00
8,000.00
36,000.00

OTHER EXPENCE PER MONTH

Sl No
1
2
3
4
5
6
7

Item
Power
Rent
Office expenses , etc.
Transportation
Postage and telephone
Stationary
Miscellaneous
TOTAL

Amount
2,000.00
2,000.00
500.00
3000.00
500.00
500.00
2,000.00
10,500.00

WORKING CAPITAL
Sl
No
1
2
3
4
5

Item
Stock of Raw materials
Work in process
Stock of finished goods
Receivables
Working Expenses
Total

Period in
days
7
4
5
5
30

Total Amount
41,552.00
23,744.00
29,680.00
29,680.00
46,500.00
1,71,156.00

Loan From
Bank
39,474.00
22557.00
28,196.00
28,196.00
44,175.00
1,62,598.00

Say

Margin
2,078.00
1,187.00
1,484.00
1,484.00
2,325.00
8,558.00

1,71,200.00

1,62,600.00

8,600.00

PRODUCTION PER MONTH (Capacity utilization 60%)

Sl No

Item

Qty

Unit

Rate

Amount

1
2
3
4

Coat
Steel table
Teapoy
Steel chair

15
12
15
30

Nos
Nos
Nos
Nos

5,275.00
4,250.00
2500.00
2,000.00

79,125.00
51,000.00
37,500.00
60,000.00

TOTAL

2,27,625.00

PROJECT COST

Sl No
1
2
3
4
6

Particulars
Building
Machinery & Equipment
Electrification and Errection
Preliminary & Pre-operative expences
Working Capital
Total

Amount
Rented
2,58,100.00
25,000.00
6,000.00
1,71,200.00
4,60,300.00

MEANS OF FINANCE
Sl No
1

Particulars
Term Loan from Bank (75%)

Amount
2,16,825.00

2
3

Working Capital Loan from bank(75%)

Promoters Contribution(25%)

1,28,400.00
1,15,075.00

Total

4,60,300.00

COST OF PRODUCTION & PROFITABILITY STATEMENT

Particulars
No. of working days
No.of shifts
Installed Capacity
Capacity Utilisation
Production

1st Year
300
1
4552500
60
2731500

Reciepts
A Sales
B Cost of Production
Raw materials
Salaries
Wages
Power Charges
Repairs & Maintenance
Insurance
Depreciation

2622240
1780800
216000
216000
24000
5160
2581
25806

Total
C Gross Operating Profit
Administrative &
D expenses
E Financial expenses
1. Interest on Term loan
2. Interest on WC loan
3. Interest on MM loan
F Total of D & E
G Net Operating Profit
H Income Tax
I Net Profit
J

Withdrawals

K Add Depreciation
L Cash Surlpus

2270347
351893
Selling
102000
27704
17976
0
147680
204213
421
203792
0
25806
229598

BREAK - EVEN ANALYSIS

1 Year

Particulars
FIXED COST
Salaries
Repairs & Maintenance
Insurance
Administrative expenses
Depreciation
Interest on Term Loan
Total
VARIABLE COST
Raw materials
Wages
Power Charges
Selling expenses
Interest on WC loan
Total
BEP in % of Installed
Capacity
DSCR

216000
5160
2581
18000
25806
27704
295251
1780800
216000
24000
60000
17976
2098776
56.40
3.95

REPAYMENT SHEDULE OF TERM LOAN @ 13.5%

Instalment
Inst.
Year
Number Principal
Amt Interest Balance
1
216825
7740
7318 209085
2
209085
7740
7057 201345
3
201345
7740
6795 193605
4
193605
7740
6534 185865
1
30960
27704
5
185865
7740
6273 178125
6
178125
7740
6012 170385
7
170385
7740
5750 162645
8
162645
7740
5489 154905
2
30960
23524
9
154905
7740
5228 147165
10
147165
7740
4967 139425
11
139425
7740
4706 131685
12
131685
7740
4444 123945
3
30960
19345
13
123945
7740
4183 116205
14
116205
7740
3922 108465
4

15
16

108465
100725

17
18
19
20

92985
85245
77505
69765

21
22
23
24

62025
54285
46545
38805

25
26
27
28

31065
23325
15585
7845

7740
7740
30960
7740
7740
7740
7740
30960
7740
7740
7740
7740
30960
7740
7740
7740
7845
31065

3661
3399
15165
3138
2877
2616
2355
10986
2093
1832
1571
1310
6806
1087
816
545
275
2723

100725
92985
85245
77505
69765
62025
54285
46545
38805
31065
23325
15585
7845
0

INTEREST ON WORKING CAPITAL LOAN ( @14%)

1 Year 2 Year
3 Year
4 Year 5 Year
6 Year
7 Year

8 Year

Total Working
Capital

171156 188272

207099

207099 207099

207099 207099 207099

Loan Amount

128400 141240

141240

141240 141240

141240 141240 141240

Interest

17976

21186

21186

21186

21186

21186

21186

21186

Project Profile On Desiccated Coconut Powder

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

Project Profile on Desiccated Coconut Powder

Introduction
India is the third largest coconut producing country in the world. As per the survey reports
conducted by coconut development board in 2013-14 the annual production of coconut in Kerala
is 5798.04 million nuts and the state has become the 3rd largest coconut producing state in the
country. In Kerala about 60% of the coconuts are used for the manufacturing of oil and the rest for
the preparation of food. Copra and coconut oil are the two major products of the coconut
processing industry. Nearly 60% of the total production of nuts is utilized for food uses and the
rest goes in for oil extraction. In spite of the fact that Kerala has the necessary raw material to
launch new product lines, minimum efforts has been taken place for producing more value added
products like coconut chips. Coconut vinegar, desiccated coconut powdered has taken place in the
application of modern technology for full utilization of various coconut products such as
desiccated coconut, coconut cream powder, partially defatted coconut gratings, bottled coconut
water, etc., Desiccated coconut is widely used in the preparation of sweets, confectionery, curry
preparation etc. At present about 4000 tones of desiccated coconut is produced annually. The
main concentration of units producing desiccated coconut is in Kerala, Tamil Nadu, Andhra
Pradesh, Karnataka, Orissa and Maharashtra. Desiccated coconut is not only a value added
product but it being a labor intensive industry will also generate a large number of employment
opportunities.
Market Potential
Being a mass consumption item, desiccated coconut has a good market. At present about 4000
tones of desiccated coconut is manufactured annually and used mainly by confectionery and
biscuit industry. In Kerala coconut is the major ingredient used in the preparation of Breakfast
lunch and Dinner. In the preparation of curries coconut paste is usually added. Instead of that
desiccated coconut powder may be added . Desiccated coconut may find good market in areas
where coconuts are not produced particularly in Northern India. Now-a-days food habits of our
people are changing very fast and a number of food items are being introduced every day where
desiccated coconut may also find use. So there is a good scope for new small scale units to come
up in this line of manufacture.
Basis and Presumptions
The Project Profile is based on the following presumptions:
(i)
Working hours/shift
: 8 hrs.
(ii)
No. of shift/day
:1
(iii)
Working days
: 300
(iv)
Labor charges
: As per State Governments Minimum Wages Act.
(v)
Rate of interest
: 15%
(vi)
Value of machinery and equipments : Taken on the basis of
A particular supplier
(vii)
Value of raw material
As per local market Packing material/others
rate (on whole sale rate)
(viii) Land
: owned
(ix)
Building Construction charge
: @Rs. 2000 per sqft

(x) Break-even Point Calculated on full capacity utilization basis

(xi)
Pay-back period 7 years

Implementation Schedule
The project implementation schedule
(i) Project preparation 0-1 month
(ii) Site selection, acquisition of 1-2 months land and land development
(iii) Sanction of loan 1-3 months
(iv) Construction of building 3-4 months
(v) Sanction of electric power, water 4-5 months
vi) Procurement of Machinery 5-6 months and Equipments
(vii) Electrification & installation 6-7 months
(viii) Recruitment of staff and labour 7-8 months
(ix) Trial run 8-10 months
(x) Commercial production 10-11 months
The project could yield result by the end of the 12th month.
Government Policy
Being a food processing unit it will be eligible to get 25-to30% subsidy on the total fixed capital
investment under ESS Scheme and 15-35% subsidy on the total project cost under PMEGP
Scheme.

Technical Aspects
Process of Manufacture First step in the manufacture of desiccated coconut is the selection of
coconuts. The quality of desiccated coconut depends upon the quality of coconuts used. Fully
matured coconuts of about 12 months are used for the preparation of desiccated coconut. Fully
matured nuts are stored with the husk for about one month so that the water inside the kernels is
absorbed. This also facilitates coconut kernels to get separated from shell walls. The coconuts are
dehusked and their shells are removed. The brown portion of nuts called tasta is removed by
scrapping it off. About 10-15% of the kernel goes as paring by this process. These parings can be
pressed out after drying to get oil which can be used for soap making. Deshelled coconuts are
broken into pieces, washed properly and disintegrated into powders of various grades. The
powder is then dried in a drier by spreading it out uniformly in trays. The temperature in the
drying chamber is maintained at about 180O F and the powder is stirred occasionally during the
drying process to ensure uniform drying. Great care should be taken during drying. When
powder is dried, it is cooled and passed through a vibratory screen having different sizes (12, 14
and 16 mesh). The segregated material is packed in oil proof, moisture proof polythene lined
plywood boxes of 25 kgs. It may also be packed in polybags of 250 gms, 500 gms for retail sale.
During the process of manufacturing desiccated coconut, a number of byproducts such as
coconut shell, parings, and husks are obtained which may be converted into various items of
great importance. It has been worked out that 100 kgs of desiccated coconut is obtained from
1000 coconuts.
Quality Control and Standards

The unit should obtain licence under the Food Safety and Standards Authority of India.
Pollution Control
The main effluent produced in the process of desiccated coconut is the after wash water having
dissolved solids and coconut oil. The level of dissolved solids and oil is not significant and the
effluent water could be safely used for irrigation purpose or drained out after traping solids and
oils. The water having detergent used for cleaning equipments should be disposed off separately.
Proper disposal facility should be made available for dumping refuge and perishable spoiled
products and a separate pit constructed for this purpose. Proper hygiene and sanitation will ensure
environment free of pollution. However, a no objection certificate is required to be obtained from
State Pollution Control Board and care should be taken to control pollution Energy Conservation
Electrical energy is the main energy source in the process of desiccated coconut manufacturing.
Efforts should be made to keep power load at the minimum at a time. Capacitors should be fitted
for motors to keep power factor to its maximum. Improved designs of tube light with electronic
choke should be fitted for lighting purposes for getting efficient light with less electric energy
consumption. Factory shed should be constructed in such a way that natural light could be
utilized, optimum temp. should be maintained in the drying chamber to get desired product with
less energy. Proper maintenance of electrical equipments and machinery will further ensure
energy conservation. Proper monitoring should be done in the operation of machinery and
equipment particularly drier and when not required, it should be switched off.
The financial aspcts are detailed below.
A
i)
Sl.No
1
2
3

ii)
Sl.NO
1
2
3
4
5
6
7
8
9
10
11

FINANCIAL ASPECTS
FIXED CAPITAL
Land and Building
Particulars
Land
Building 2000sqft @Rs.2000per Sqft
Over Head Tank
Total

Amount(in Rs)

Machinery and Equipments

Particulars
Cabinet type hot air drier with blower, motor and other accessories
Disintegrator 12" size with 10HP motor and accessories
Vibratory sifting machine fitted with GI wire mesh and 2 Hp motor
Aluminium Trays 10 nos
Platform weighing Balance
Polythene sealing machine 2 nos
Other misc items like scrapping knives, trolleys etc
working tables
Lab testing equipments
Electrification and installation
Essential Office furniture
Total

Owned
400000
40000
440000

Amount(in Rs)
185000
105000
50000
15000
10000
5000
10000
20000
20000
50000
25000
495000

iii)

pre Operative Expenses

TOTAL FIXED
CAPITAL (i+ii+iii)

B
i)
1
2
3
4

WORKING CAPITAL
RAW MATERIALS
coconut with husk 75000nos 2 Rs 10
Polythene bags 75 kg @ Rs120 per bag
Plywood Boxes of 25kg capacity 300nos @
Rs.100 per box
Labels, gums and other packing aids L.S
Total

25000
960000
( For one
month)
750000
9000
30000
10000
799000

SALARIES AND WAGES

ii)
Manager cum Food
I technologist 1

20000

2 sales man

10000

3 Skilled workers-2

30000

4 Helpers 10 nos
Total
iii)

utilities
1 Electricity charges
2 water

iv)

50000
110000

4000
300

3 Firewood

7000

Total

11300

Other Contingencies
1 Printing postage, telephone
2 Repair and maintenance
3 Transportation
Advertisement and
4 publicity
5 Insurance
6 Misc
Total
Total working
capital(i+ii+iii+iv)

400
1000
5000
5000
1000
1300
13700
934000

TOTAL CAPITAL INVESTMENT

C
a)
b)
Total
Source of
Fund
a
b
c
Total

F
1
2
3
4
5
6

Term loan
working Capital Loan
Own fund

720000
700500
473500
1894000
1420500

The Capacity utilization in this project has been worked out to be 60%n in the 1st
year 70% in the 2nd year
cost of production
Total recurring expenditure
934000
Depreciation on Building and tank @5%
1833
Depreciation on machinery and equipments
@10%
2917
Depreciation on hand tools@15%)
438
Depreciation on Office equipments@20%
1000
Interest on loan(15%)
17756
Total production cost
957944
Say
958000

Turnover (per month) in Rs

1 Desiccated Coconut
7.5 Tone @ Rs.130000 per ton)
2 Coconut shell
2 MT @35000per mt
3 Coconut husk 75000 nos @ 40ps)
TOTAL
H

960000
934000
1894000

Total loan required

Fixed Capital
working Capital

Net profit per month

975000

70000
30000
1075000
117000

Annual profit
1404000
(Before tax)
J
Net profit Ratio on sales
11%
The above net profit is sufficient for the repayment of loan amount of Rs. 1420500 @ Rs. 16920
per month with interest and also to meet the monthly living expenses of the promoter and his
family. The project is found to be technically feasible, economically viable and eligible for being
financed. BEP and viable and eligible for being financed. BEP and repayment schedule are shown
below

BREAK EVEN POINT

FIXED
COST
a)
b)
c)
d)

I)

Depreciation
Interest
40% of salary and wages
40% 0f other expenses

Total
2)
Net profit

6188
17756
44000
5480
73424
117000

BEP

38.56%

FIXED COSTx100
(FIXED COST+NET PROFIT)

REPAYMENT SCHEDULE
Basis; Interest rate 15%, period of repayment 7yrs
Amount repayable
Year
1st
2nd
3rd
4th
5th
6th
7th

Opening
Balance
1420500
1217570
1014640
811710
608780
405850
202920

principal
202930
202930
202930
202930
202930
202930
202920

Interest
213825
182636
152196
121757
91317
60878
30438

Total
416755
385566
355126
324687
294247
263808
233358

Closing Balance

1217570
1014640
811710
608780
405850
202920
0

LIST OF MACHINERY SUPPLIERS

1) M/s. Avery India Ltd. Falnir Road Cross, Mangalore - 1.
2) M/s. Ganapathi Bhandarkar and Company Azizuddin Road, Mangalore - 1.
3) Premier Engg. Products, 3rd floor, C.R.C. Building, M.G. Road, Cochin - 682 011. (Dryer)
Heat Flow Engineers, Plot 305, Netaji Nagar, Perungadi, Madras - 600 096. (Dryer)

Project Report on Foot Wear

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

PROJECT HIGHLIGHTS
Activity

Foot Wear Making

1. Fixed Capital

33.51 Lakhs

2. Working Capital

7.81 Lakhs

3. Total

41.32 Lakhs

4. Means of Finance
a.

Own

16.32 Lakhs

b.

Term Loan

22.00 Lakhs

c.

Working Capital Loan

TOTAL

3.00 Lakhs
41.32 Lakhs

5. Total Connected Load

5HP

6. Employment potential

11 Nos

7. Expected Revenue

108.90 Lakhs

8. Operating Profit

9.77

Lakhs

9. Net Profit anticipated

9.72

Lakhs

10. Breakeven point

43%

11. Infrastructure
d.

Land & building

Available

e.

Power

Available

f.

Raw Materials

Available

g.

Road

Available

Introduction
Foot wears are the greatest safeguard of our body. Wearing foot wears, which protects the body
from penetrating germs, bad materials to our body. The promoter has clearly analyzed the
availability of raw materials, latest high-tech machinery and marketing strategy. The unit can
manufacture 2000pieces of foot wears within 2 days.
Demand/Scope:- The product is generally used by every gents, ladies and kids. The foot wears is
an inevitable daily using product for a healthy life. Moreover there are no such units in north
Kerala hence the demand is great.
Marketing Area:- The main marketing areas are throughout Kerala, Karnataka and Tamilnadu.
Raw materials:- The main raw materials are Voralast GE, Voralaste CE ,Polyrol, Rexin, Latex,
Excel- Viva Sheet, MCL Reducers,Printing Ink ,Packing Cartons etc..
Manufacturing Process:Initially rexin /excel viva sheet cut in the form of different sole sizes by using cutting machine
and then folded by applying rubber milk & gum on viva sheet and folded and stitched together
then printed and embossed the brand name.
After the embossing and stitching process the half-finished rexin material fitted in a mold the one
part of the mold filled with PU resin in liquid condition then closed the mold and allow to passes
through high temperature medium after this heating process the material removed from the mold
and then passes to the shoe sole trimmer section in this section the extended rexin portion
removed and passes to the final packing section.
Financial Implication:1. Land and building- The cost of land is Rs 4 Lakhs and the unit has constructed the
required building and the cost of building is Rs 8 Lakhs.
2. Plant and machineriesa. 40 Station Banana (PU making Machine)
b. 3HP Air compressor
c. Side Trimming Machine
d. Poly ISO Loading Pump
e. Silicon Spray Tank
f. Air Drier
g. Mixer
h. Molds: Kids Size 1 to 5 (5pair)
Gents 6 - 10 (5pair)
Ladies 5 - 9 (5pair)

1 no
1 no
1 no
2 no
1 no
1 no
1 no

12,07,500.00
48,090.00

29,400.00
1,57,500.00
1,68,000.00
3,15,000.00

i. Computer with all accessories

j. Barcode printer

2 nos
41,300.00
1 no
19,200.00
-------------------------------TOTAL
19,85,990.00

3. Electrification Cost : Wiring material cost

Labour Charge
K.S.E.B Deposits

80,611.00
10,000.00
6,000.00
----------------------------------TOTAL
96,611.00

4. Miscellaneous Assets : Office Table 1 x 8000.00

Executive Chair 2 x 5000
Sofa Set 1 no

8,000.00
10,000.00
15,000.00
----------------------------------TOTAL
33,000.00

5. Pre- Operative Expenses : Registration & licences

Reports,Travelling Expenses
Other Cash Expenses
TOTAL
Working Capital
1. Raw materialsa. Voralast ge liquid 143
ISOC/Nate Rs 245.00 x1320Kg
b. Voralast ge 776 polyol
Rs 225.00 x1200Kg
c. Carton Box
12000Nos x Rs 6.75

15,000.00
10,000.00
10,000.00
----------------------------35,000.00

TOTAL
2. Salary/Wages
a. Machinist
b. Packing
c. Accountant
d. Computer operator

5nos x Rs 10000.00
4 nos x Rs 5000.00
1 nos x Rs 6000.00
1 nos x Rs 6000.00
TOTAL

3,23,400.00
2,70,000.00
85,050.00
---------------------6,87,450.00
50,000.00
20,000.00
6,000.00
6,000.00
------------------------82,000.00

3. Other Expenses
a.
b.
c.
d.
e.
f.
g.

Telephone
Electricity
Transport
Advertisement
Repair
Insurance
Misc Expenses

1,500.00
5,600.00
3,000.00
1,500.00
3,200.00
1,700.00
4,500.00
-------------------------

TOTAL

21,000.00

Total Working Capital

a. Raw materials
b. Salary/Wages
c. Other Expenses
TOTAL
PROJECT COST
Land
Building
Plant&Machinery
Misc Assets
Electrification
Pre Op Expenses
WorkingCapital
TOTAL
Means of Finance
a. Term Loan
b. Working Capital Loan
c. Own Contribution

6,78,450.00
82,000.00
21,000.00
------------------------7,81,450.00
4,00,000.00
8,00,000.00
19,85,990.00
33,000.00
96,610.00
35,000.00
7,81,450.00
----------------------------41,32,050.00

TOTAL

22,00,000.00
3,00,000.00
16,32,050.00
---------------------------41,32,050.00

Total

6,78,450.00
82,000.00
21,000.00
27,080.00
17,550.00
---------------------------8,26,080.00

Cost of Production (1 month)

a. Raw Materials
b. Salary/Wages
c. Other Expenses
d. Interest on loan
e. Depreciation

Sales per Month

Ladies Foot Wear
Rs 120.00 x 15000 nos
Rs 135.00 x 1000 nos
Rs 250.00 x 1000 nos
Gents Foot Wear
Rs 145.00 x 800 nos
Rs 160.00 x 800 nos
Rs 265.00 x 370 nos

1,80,000.00
1,35,000.00
2,50,000.00

Total

1,16,000.00
1,28,000.00
98,050.00
--------------------------------9,07,050.00

a.) Revenue/Sales Month

Monthly Revenue/Sales
Less Cost Production/Expenses
Difference (Profit)
Annual sales
Annual Profit

Rs
Rs

9,07,050.00
8,26,080.00
-----------------80,970.00
108.90 Lakhs
9.72 Lakhs

b.) Net profit Ratio

Net profit(p.a) x100
9.72 x100
= ---------------------------------- = ---------------- = 8.93 %
Turnover (p.a)
(9.07x12)
c.) Rate of return on total capital Investment
Net profit(p.a) x100
9.72 x100
= ---------------------------------- = ---------------- = 17.07 %
Total Investment
(56.94)
d.) Break-even point
Annual Fixed cost
B.E.P = ----------------------------------------------------------(Annual Fixed cost + Annual Net Profit)

B.E.P

7.32 100
-------------------------- = 43 %
7.32 + 9.72

Conclusion
The unit needs Rs 22.00Lakhs as term loan and Rs.3 Lakhs as working capital Loan .The
promotor contribution will be Rs 16,32,050.00 .The term loan will be repaid in 7 years 84
monthly instalments or as per bank norms.The unit also eligible to receive 30% subsidy under
E.S.S.The project is technically and economically viable.

Project Profile on Wooden Furniture Manufacturing Unit

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

1.INTRODUCTION

Wooden furnitures are a symbol of Kerala tradition. They were used in kerala from 100s
of years ago. This project is meant to setup a manufacturing unit of wooden furniture such
as Chair, Coat, windows and door etc .The unit will undertake the job work also. The unit
envisages manufacturing of wooden furniture on different designs out of quality wood
like Teak, Anjili, Rose wood etc. But mainly on teak wood.
2.MARKET
As the furniture would not have any fixed brand or company name, therefore, there would
be less competition. The demand of wooden furniture and wooden building materials is
increasing as construction and housing industry expand. Attractive and genuine wooden
furniture have good access in market. The demand for the furniture made up of woods is
growing due to the increased standard of living of people and outlook. On occasions like
wedding, it has become customary to gift wooden furniture like double bed, sofa, dressing
table, dining table to the daughter. The finished products can also be sold through furniture
marts
3. MANUFACTURING PROCESS
The line of process is used for wooden furniture is made as per the measurements;
shaping, bending & chiseling as per design; finishing touch with sand paper; finally apply
varnish/paint/lamination; and furniture can be laminated using laminated sheet.
BASIS AND PRE ASSUMPTIONS
1.0 The production is based on a single shift basis of 8 hours per day and working days in a
month
1.1 Laborer will be engaged on monthly basis keeping in view the present rate
prevailing in
the market
1.2 Land and buildings are rented.
4.The unit will get subsidy for the power requirement as it will get registered under MSME Act
4.FIXED CAPITAL
4.a Land & Building :- Rented building of 700 sq ft of rent @2000 per month.
4.b Machinery and Equipment
SL
No
1
2
3
4
5
6
7
8

Particular

Quantity

Rate

Amount

15combi max planner

3 HP Single phaseMotor
Blade Grinder with motor
Hand drill machine
Sander machine
Stand type drilling machine with motor
12 planner
Rixo(mini)
Leith

1
1
1
1
1
1
1
1
1

75000
12000
21000
24000
28000
2000
40000
85000
38000

75000
12000
21000
24000
28000
2000
40000
85000
38000

9
10
11

Cutter
Hand Tools & other small
equipments etc
TOTAL

15000

15000

25000

15000
355000/

4 c. furniture expenses

10000/

Power requirement for the unit

14.5 HP

5. WORKING CAPITAL
5 a. Raw material required for one month
Sl.No Items
Qty

Rate

Amount

1
2
3
4
5

25000
1200
250
35
42

125000
3600
6250
7000
8400
150250

Woods of different type

Plane glass
Fevicol
Ply
Sun mica
Total

5Cum
3 No
25Kg
200 sq ft
200 sq ft

5 b. wages and salaries

Sl No
1

Designation
Workers
Total

No
4

Rate
9000

5 c. Utilities and Contingencies/Month

1. Rent
2. Power charges
3. Miscellaneous
Total

Rs.2000/Rs.1500/Rs.500/- Rs 4000/-

6 Total Working Capital Requirement

1.
Raw materials for one month
- Rs.
2.
Wages and salaries for one month
-Rs
3.
Utilities and contingencies for one month -Rs.
Total working capital requirement of the unit

150250/36000/4000/-Rs 190250/-

7. TOTAL CAPITAL
1. Fixed Capital 2. Working Capital( 3 months)
Total capital investment

Rs. 365000
Rs. 570750/Rs 935750/-

8.SOURCES OF FUNDS
1. Own Capital(20% of project cost)

-Rs 187150

Amount
36000
36000

2. composite Loan from bank

-Rs 748600

9.COST OF PRODUCTION PER ANNUM

1. Total recurring expenditure per annum
a) Raw materials
b) Wages and Salaries
c) Utilities and contingencies
2. Depreciation of machinery @15%
3. Interest on bank loan @12%
Total

- Rs.1803000/-Rs. 432000/-Rs. 48000/-Rs 54750/-Rs 89832/- Rs.2427582/-

10. TURNOVER PER ANNUM

Sl.No
1
2

Items
Furniture: Coat
Building material:1. Windows
2.Doors
3. Chairs

Qty
100
70
90
60

Rate
12000
7000
10000
7000

Total

3010000

1.PROFITABILITY

11 a. NET PROFIT (BEFORE TAXATION)

1
2

Amount
1200000
490000
900000
420000

TURNOVER
COST OF PRODUCTION
Total (1-2)

3010000
2427582
582418

11.b NET PROFIT RATIO

NET PROFIT *100/TURN OVER PER
YEAR

= 582418*100/3010000
= 19.34%

11.c RATE OF RETURN ON TOTAL INVESTMENT

NET PROFIT*100/TOTAL
INVESTMENT

= 582418*100/935750

= 62.24%
12.a FIXED COST
Rent
Total Depreciation[ Machinery & furniture]
Interest on Total Investment
40 % of Salary & Wages[ 432000*12/ 40%]
40% of utilities & other contingent expenses[ 48000*12/
40%]
Total:

12 b BREAK- EVEN ANALYSIS

Fixed cost x 100
= 38.23%
Fixed cost + Net Profit

Rs: 24000/Rs: 54750/Rs: 89832/Rs: 172800

Rs: 19200/Rs: 360582

Project Profile on Manufacturing of Paper Napkins

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

Manufacture Of Paper Napkins

1. Introduction

Paper napkin is a small piece of tissue paper used for hand or face cleaning. These are becoming
popular with the catering industry due to manifold usages. Now a days they are being more and more
used in households, institutions etc. These are absorbent, hygenic, light and can be had with attractive
printing.

2. Market Demand
Urbanisation has made a profound impact on our dining habbits. One of the notable change is the
increased use of paper napkins now a days, which was otherwise could be seen only in western
countries. Plain paper napkins are now being widely used in restaurants, households, vehicles,
industries, institutions etc. Paper napkins with colourful layout and attractive designs are having bright
prospects with our restaurants focussing on tidiness and adornment.
3. Production Targets
Basis of Estimation

Quantity (Kg)
Value (Rs)

300 Working Days in a Year Single Shift

basis8 hours per shift
150000
9750000

4. Manufacturing Process
Tissue paper roll are fed to the flexographic printing machine with attachment for the manufacturing of
paper napkins wherein, these are printed and cut to the size with the device already fixed with the
machine
5. Land and Building
Rent for each month

4000

6. MACHINERY AND EQUIPMENT

SL.NO Description
1 Two colour flexographic machine with attachment of paper
napkin

Qty.
1

2 Testing Equipment

L.S.

3 Edge sealing and cutting machine

L.S.

4 Hand Tools

L.S.

5 Sales Tax, Freight & Insurance etc

Total

Value
(Rs.)
400000

40000
440000

7. RAW MATERIALS (PER MONTH)

SL.NO Particulars
Quantity
(tonne)

Value (Rs)

1 Tissue Paper 21 GSM

12.5

700000

2 Inks & Other Consumables

L.S.

10000

3 Packaging Material

L.S.

3000

Total

713000

8. STAFF AND LABOUR (PER MONTH)

SL.NO
Employee
No.

Amount

Administrative and
Supervisory

(i)

Manager

7000

(ii)

Peon/ Chowkidar

2000

B
(i)

Technical (SkilledUnskilled)
Skilled Worker

6000

(ii)

Unskilled Worker

8000

Sub-Total

23000

Plus perquisites @ 20% of salaries

4600

TOTAL

27600

8. OTHER EXPENSES (PER MONTH)

1
Rent of Land & Building
4000
2

Electricity Charges

2500

Transport

3000

Consumable & stores etc.

1000

Postage expenses/
telephones

1000

Stationery

1000

Repairs & Maintenance

1000

Total

13500

9. WORKING CAPITAL (ONE MONTH)

SL NO
DESCRIPTION
AMOUNT (RS)
1 Raw material
713000
2 Salaries & Wages

27600

3 Other Expenses

13500

Total

754100

10. TOTAL CAPITAL INVESTMENT

Machinery & Equipment

440000

Working capital for one month

754100

Total

1194100

11. SOURCE OF FUNDS

AMOUNT (RS)

ITEM

SL NO

1 Term Loan
2 Working capital loan

308000

3 Own Contribution

358230

527870

12.COST OF PRODUCTION (PER ANNUM)

Total recurring cost per year

9049200

Depreciation on machinery & equipment

88000

Interest on term loan and working capital

loan @ 14%
Total

117021.8

13. SALES PROCEEDS (PER ANNUM)

SL NO.
Item
1 Paper Napkins
Total

9254222

Qty (Kg)
150000

Value (Rs.)
9750000
9750000

14. PROFITABILITY
1 Annual Gross Profit

495778

2 % of Profit on Sales

5.08%

3 Break Even Analysis

3.1 Annual Fixed Cost

367021.8

3.2 Annual Sales

9750000

3.3 Annual Variable Cost

8887200

3.4 Break Even Point

42.54%

4 Debt Service Coverage Ratio

2.05

Project Report on PAPPAD MANUFACTURING

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045
PAPPAD MANUFACTURING

Introduction
Papad is also known as Papadum. Papad is nothing but the thin Indian wafer, which can be
refereed as a cracker or flat bread. Papad is generally made from dried lentils, it can be eaten fried

or roasted. There are variety of papad flavors available in the market, that are made to suit the
requirement of each and every individual.
The basic composition of the papad varies from a number of ingredients such as cereal flour,
pulse flour, soya flour, spice mixes, chemical mixes and different vegetable juices for improving
both organoleptic and nutritional characteristics.
Before making any papad, its dough is required to make. That dough contains salt and peanut oil
and some flavors to make the special regional papad. Baking soda is also one of the main
ingredient for making good papad. The dough is shaped into a thin, round flat bread and then
dried (traditionally in the sun). Papad can be cooked by deep-frying, roasting over an open flame,
toasting or microwaving.
In India, Papad has a vital place in every meal. It is highly served or accompanied either as a
snack, chaat or with main course recipes. Papad is an example of the genius of Indian cuisine.
Originally there are two types of Papad North Indian papad and South Indian papad. They come
into different sizes and textures such as mini papad, big papads, roasted papad, khakra and many
more.
Papads of various brands are easily available in the market. One of the most famous market brand
is Lijjat. You can get variety of tasty and flavorful Lijjat papads with different shapes and sizes.
Always check that they are dry and not stuck with each other.
USES:

1.3 Papad is a great accompaniment with drinks and mocktails, one of the best example is masala papad.
1.4 Papads are typically served as an accompaniment with any meal in India.
1.5 Papad can be eaten as a starter or snack dish.
1.6 Fried, roasted, open-flame papad and oven-made papad are some of the best varieties of papad.
1.7 A famous Rajasthani delicacy is papad curry or papad ki sabji, that is made from the papad only.
1.8 Papad can be enjoyed with variety of pickles, chutneys and sauces.
1.9 You can get papad of several flavors of your choice, such as Punjabi masala, urad dal, moong
dal, asafoetida, black Pepper, green chilly, red chilly, cumin, garlic, ginger, cardamom, cloves
and cinnamon, etc.
1.10 Since the years, Papad has been used to serve with dal and rice, as it enhance the taste of the meal.
1.11 You can munch the Papad as a great snack dish.
1.12 Papad can be served with soup or with the main meal.

2.0 Papad is often crushed and sprinkled on the rice.

2.1 A traditional Indian thali, platter, marriage buffets, parties, etc always includes papad in their menu.
2.2 You can crush the raw papads for coating the kebabs and tikkis.
2.3 Papad is used for making several Gujarati subzis like Methi- Papad nu shaak, Ghatia- papad nu shaak,
etc.
STORAGE:
3.0
3.1
3.2
3.3

Papad should be stored in air tight container.

It can be stored for 10-12 months.
Sometimes keep them under fresh air and sun light for few minutes for preserving even more better.
Although storage can be done, but it is advisable to buy limited stock or small packets of papad and
use them as per your requirement.

BENEFITS:
Papad is a good appetizer and a source for digestive.
Roasted or grilled papad helps to absorb the fatty material from the mouth and throat.
Papad should be eaten in moderate proportion, else it can become the reason of acidity.
Papad is very high in sodium, hence not advisable for hypertensive people.
Papads are made of lentils, hence are free from gluten, rich in protein and dietary fiber

Location , Land & Building

The unit will be located in a rented building. The monthly rent amount for this unit will be
Rs 5000/month.

Work Style / Activity

The raw materials of the units are Uzhunnu Mavu, Rice Powder, Castic Soda,Salt,Oil. It can
be purchased in a large scale and avail locally. The Uzhunnu Mavu, Castic soda, salt and oil
are mixed thoroughly and then put that mixture to the automatic pappad making machine.
Then pappad can make according to the die that we are giving. This Pappad may pass through
the drier also. Noramally this project aims pappad size of 5 Inch.

Equipments
Fully auto pappad making machine is the major equipments required for the manufacturing of
Pappad. In addition, the accessories like Sealing Machine,Tables,Chair and rack are required.

Estimation of the working capital

The estimated requirement of working capital of the unit comes to Rs 3,23,000 the basis for
the estimation of working capital is cost of the raw material required per month, and the labor
charges. The details are furnished in the financial analysis of the report.

Cost of the Project.

The total cost of the project comes to Rs 10,23,000; which is arrived from the financial
analysis.

 Source of Fund.
The promoter is expecting a composite loan of Rs. 8,18,000 from the Bank, which includes
the Term loan for the fixed investment and working capital. The pro moters contribution is
shown as Rs. 2,05,000. Details are furnished in the financial analysis of the report.

Assumptions

This project report is prepared based on the following assumptions.

1. The unit is expected to operate 25 days in a month on single shift basis.
2. Working capital is estimated based on raw material and other expenses required per
month.
3. Any change in the government or bank policy will make corresponding change in the
project report.

Conclusions
By virtue of the contacts of the promoter in the business activity the unit is expecting an
ascending future. The project is prepared on the basis of reasonable and reliable estimates and
assumptions. The project can generate enough cash to pay the interest as well as installment of
loan. The project is technically feasible and financially viable.

Pappad Manufacturing Unit

ABSTRACT
Name & Address
Type of Organization

Proprietary

Unit Address

Panchayath
Building Number /Survey no
Village
Activity

Pappad Manufacturing (Pappad

Scope of Project

New Project

Project Cost
Fixed Investment
Working Capital

` 700000
` 323000

Means of Finance
Term Loan
W.C. Loan

Total

` 1023000

Promoter's Share
Total

Subsidy Eligible
Repayment Period
Gross Profit after 1st year

&

` 191625

` 560000
` 258000
818000
` 205000
` 1023000

(as per ESS )

3
` 592300

>>>

Rs 49400 / Month (average)

Scheme

SME finance

Rate of Return

56%

Average DSCR

2.61

DER

1.07

IRR

75%

; as NPV is + Ve

BEP

64%

(Break Even Point at 70% Capacity Utilization

Current Ratio

6.79

Net Profit Ratio

13%

Payback Period

In between 1 and 2 year

Employment Potential

Name of Bank
Project Implementation Period

From May 2015 To August 2015

Project Details
Fixed Capital Investment
A
Land & Building
Cost of Land

Nil

Land Development Cost

Building

Nil
Nil

Total
B

Machinery /Equipments
Si No
1
2
3
4
5
6
7
8
10

Item
Fully Auto Pappad Machine
Flour Kneading Machine
Flat Sheet Making
Pappad Sheeter
Cutter Machine
Electric Drier
Tax
Sealing Machine

Make
PP deluxe

Unit Price
565000

Qty
1

Ext Price
565000

28250
7000

1
1
Total
Total
Total

28250
7000
600250
600250
600250

Qty
1
5
2
Total
Total
Total

Ext Price
15000
3500
20000
38500
38500
38500

Total
Total

Amount
25000
15000
15000
55000
55000

Inclusive of Pappad
Machine

Make

Unit Price
15000
700
10000

0
0

Furniture / Fixtures

Si No
1
2
3

Item
Table
Chair
Rack

Preliminary & Pre-operative cost

Si No
1
2
3

Details
Erection & Electrification
Preliminary Expenses (Others)
Trial Production

Contingency

Si No

Details
Contingency / Others/ Miscellaneous Expenses
Total

F
Si No
1

Total Capital Expenditure ( A + B + C + E )

Sales Realization (@ 100% Capacity Utilization )
Item
Unit Price
Pappad
7.5

Amount
6250
6250

` 700000
Qty
65625
Total

Ext Price Yearly Sales

492187.5 5906250
492187.5 5906250

Raw Materials
Si No
1
2
3
4

Item
Rice Powder
Caustic Soda
Uzhunnu Mavu
Oil

Unit
Kg
Kg
Kg
Kg

Amt/Mont Qty or Mo Ext Price

32
3240
103680
70
540
37800
115
30600
3519000
75
900
67500

5
6

Salt
Packing Cover

Kg
Kg

15
150

1080
204
Total

16200
30600
3774780

Wages

Si No

Monthly
Wages/W Monthly
Numbers orker
Wages
0
0
0
Total

Type of Worker
1

Yearly
Wages
0
0

Salary

Si No
1
2
3

Monthly
Salary/wo Monthly
Numbers rker
Salary
1
15000
15000
2
11250
22500
1
8750
8750
Total

Type of Worker
Manager/Proprietor
Worker
Helper

Yearly
Salary
180000
270000
105000
555000

Other Expenses / Year

SI No

Elements

Amount

Repairs & Maintenance

Power & Fuel

Other Overhead expenses

Telephone Expenses

6000

Stationery & Postage

10000

Advertisement & Publicity

10000

Other Miscellaneous Expenses

Rent (if building on rental )

L
Particulars

10000
155250
10000

8000
60000

Capacity Utilization of Manufacturing & Administrative Expenses

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

8th Year

70%

72%

74%

76%

78%

80%

82%

84%

2642346

2717842

2944328

3019824

3095320

3170815

7000

7200

7400

7600

7800

8000

8200

8400

108675

111780

114885

117990

121095

124200

127305

130410

7000

7200

7400

7600

7800

8000

8200

8400

2765021

2844022

2923022 3002023

3081023

3160024

3239025

3318025

674606
8785

708336
9663

743753
10629

780941
11692

Capacity Utilization
No of Shifts/day

A. Manufacturing Expenses
Raw Materials
Wages
Repairs & Maintenance
Power & Fuel
Other Overhead expenses
Total (A)

2793337 2868833

B. Administrative Expenses
Salary
Telephone Expenses

555000
6000

582750
6600

611888
7260

642482
7986

Stationery & Postage

Advertisement & Publicity

10000

11000

12100

13310

14641

16105

17716

19487

10000

11000

12100

13310

14641

16105

17716

19487

8000

8800

9680

10648

11713

12884

14172

15590

60000

66000

72600

79860

87846

96631

106294

116923

649000

686150

725628

767596

812231

859724

910280

964120

3414021

3530172

3648650 3769619

3893255

4019748

4149304

4282145

Other Miscellaneous
Rent (if )
Total (B)

Total A+B
M

Assessment of Working Capital

Capacity Utilization

if 100%
Shift/Day

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

70%

72%

74%

76%

78%

80%

2793337

2868833

2944328

3019824

i Variable Production Cost

Raw Material

3774780

Wages
Repair & Maintenance
Power & Fuel
Other Overhead Expenses
Total

2642346 2717842

10000

7000

7200

7400

7600

7800

8000

155250

108675

111780

114885

117990

121095

124200

10000

7000

7200

7400

7600

7800

8000

2765021 2844022

2923022

3002023

3081023

3160024

3950030

ii Fixed Production Cost

Salary

555000

555000

582750

611888

642482

674606

708336

Telephone Expenses

6000

6000

6600

7260

7986

8785

9663

Stationery & Postage

10000

10000

11000

12100

13310

14641

16105

Advertisement & Publicity

10000

10000

11000

12100

13310

14641

16105

8000

8000

8800

9680

10648

11713

12884

60000

60000

66000

72600

79860

87846

96631

649000

649000

686150

725628

767596

812231

859724

2765021 2844022

2923022

3002023

3081023

3160024

686150

725628

767596

812231

859724

3414021 3530172

3648650

3769619

3893255

4019748

Other Miscellaneous Expenses

Rent (if )
Total
iii Manufacturing Cost

Variable Production Cost

3950030

Fixed Production Cost

649000
Total

4599030

649000

iv Elements of Working Capital & Amount of Working Capital

Si No

Item

Days

Basis

Amount

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

70%

72%

74%

76%

78%

80%

Raw Material

10

Material
Cost

125826

88078

90595

93111

95628

98144

100661

Production
Cost

13167

9217

9480

9743

10007

10270

10533

16257

11380

11767

12162

12565

12978

13399

113801

79660

82371

85135

87958

90843

93794

54083

54083

57179

60469

63966

67686

71644

323134

242419

251392

260621

270124

279920

290031

W.C. can be withdrawn from WCL Acc. 258000

258000

258000

258000

258000

258000

258000

2621

12124

21920

32031

1
2

Work in
Process

Finished
Goods

Receivables

Working
Expenses

25

Manufacturin
g Cost
Manufacturin
g Cost

Fixed Cost

Total

Margin of WC to be invested

1.

65134

Project Cost & Means

of

Finance

Total

Project Cost

ii

Fixed Capital Investment

700000

Say, `

700000

Working Capital Investment

323134

Say, `

323000

Total
` 1023134
Means of Finance ( Loan from Bank & Own Contribution )

Say, `

1023000

Term Loan from Bank

560000 - 80 % of F.C.I.

Working Capital Loan from Bank

258000 - 80 % of W.C.I.

Total Loan Amount from Bank

Own Contribution

`
`

818000
205000

Total
iii
1

Subsidy Eligible

`
`

1023000
191625 (as per ESS )

Schedule of Repayment of Term Loan & Working Capital

Loan i Term Loan

Year

Opening Balance

Installment

Closing Balance

Interest @ 13%

1st Year

560000

124444

435556

72800

2nd Year

435556

186667

248889

56622

3rd Year

248889

186667

62222

32356

4th Year

62222

62222

8089

5th Year

6th Year

7th Year

8th Year

ii

Working Capital Loan

(Installment of Working Capital is shown as if the WCL is also closed along with the Term Loan)
Year

Opening Balance

Installment

Closing Balance

Interest @ 13.5%

1st Year

258000

57333

200667

34830

2nd Year

200667

86000

114667

27090

3rd Year

114667

86000

28667

15480

4th Year

28667

28667

3870

5th Year

6th Year

7th Year

8th Year

Schedule of Depreciation on Fixed Assets

i

Building

10%

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

8th Year

Opening Balance

Depreciation

Closing Balance

ii

Machinery & Fixtures @

10%

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

8th Year

Opening Balance

638750

574875

517388

465649

419084

377175

339458

305512

Depreciation

63875

57487.5

37718

33946

30551

Closing Balance

574875

517388

iii

51738.75 46564.88 41908.39

465649

419084

377175

339458

305512

274961

Total Depreciation

Building

Machinery

63875

57488

51739

46565

41908

37718

33946

30551

Total

63875

57488

51739

46565

41908

37718

33946

30551

Financial Analysis of Project

I
Particulars
Capacity Utilization
Sales Or Receipts

Projected Profit & Loss Account

In Lakhs

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

8th Year

70%

72%

74%

76%

78%

80%

82%

84%

47.25 48.43125

49.6125

41.34375

42.525 43.70625

44.8875 46.06875

Manufacturing Expenses
Raw Materials

26.42

27.18

27.93

28.69

29.44

30.20

30.95

31.71

Wages

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Repairs & Maintenance

0.07

0.07

0.07

0.08

0.08

0.08

0.08

0.08

Power & Fuel

Other Overhead expenses

1.09

1.12

1.15

1.18

1.21

1.24

1.27

1.30

0.07

0.07

0.07

0.08

0.08

0.08

0.08

0.08

Depreciation

0.64

0.57

0.52

0.47

0.42

0.38

0.34

0.31

Production Cost Total

28.29

29.02

29.75

30.49

31.23

31.98

32.73

33.49

5.55

5.83

6.12

6.42

6.75

7.08

7.44

7.81

0.06

0.07

0.07

0.08

0.09

0.10

0.11

0.12

0.10

0.11

0.12

0.13

0.15

0.16

0.18

0.19

0.10

0.11

0.12

0.13

0.15

0.16

0.18

0.19

0.08

0.09

0.10

0.11

0.12

0.13

0.14

0.16

0.60

0.66

0.73

0.80

0.88

0.97

1.06

1.17

6.49

6.86

7.26

7.68

8.12

8.60

9.10

9.64

0.73

0.57

0.32

0.08

0.00

0.00

0.00

0.00

0.35

0.35

0.35

0.35

0.35

0.35

0.35

0.35

35.86

36.79

37.68

38.59

39.70

40.92

42.18

43.48

0.20

0.20

0.20

0.00

0.00

0.00

0.00

0.00

Net Profit before Tax

5.28

5.53

5.83

6.30

6.37

6.33

6.25

6.14

Less Tax

0.03

0.05

0.08

0.13

0.14

0.13

0.13

0.11

Net Profit

5.26

5.48

5.74

6.17

6.23

6.19

6.13

6.02

Retained Profit

5.26

10.73

16.48

22.64

28.88

35.07

41.19

47.22

Administrative Expenses
Salary
Telephone Expenses
Stationery & Postage
Advertisement & Publicity
Other Miscellaneous
Expenses
Rent (if )
Total (B)
Interest on Bank Loan @
Term Loan

13 %

Working Capital Loan 13.5 %

Cost of Sale
Preliminary & Pre-Op &
Contingency. written-off

II

Particulars
Net Profit
Total Investment
Rate of Return
Average Rate of Return

Rate of Return (Return on Investment )

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

8th Year

5.26

5.48

5.74

6.17

6.23

6.19

6.13

6.02

10.23

10.23

10.23

10.23

10.23

10.23

10.23

10.23

51%

54%

56%

60%

61%

61%

60%

59%

56%

III
Particulars

Debt Service Credit Ratio ( D.S.C.R.)

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

8th Year

5.26

5.48

5.74

6.17

6.23

6.19

6.13

6.02

1.37

1.14

0.84

0.55

0.42

0.38

0.34

0.31

6.62

6.62

6.58

6.71

6.65

6.57

6.46

6.33

Interest

0.73

0.57

0.32

0.08

0.00

0.00

0.00

0.00

Installments

1.24

1.87

1.87

0.62

0.00

0.00

0.00

0.00

0.35

0.35

0.35

0.35

0.35

0.35

0.35

0.35

Total -B

2.32

2.78

2.54

1.05

0.35

0.35

0.35

0.35

DSCR = A/B

2.85

2.38

2.59

6.39

19.10

18.87

18.56

18.17

Net Profit
Add:
Depreciation + Interest
Total - A
Payments :
On Term Loan

On Working Capital
Interest

Average DSCR

2.61
IV

Source
Gross Profit

Cash Flow Statement

Im period

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

0.00

6.36

6.44

6.50

6.73

6.72

6.68

6.60

0.64

0.57

0.52

0.47

0.42

0.38

0.34

2.58

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.03

0.10

0.10

0.10

0.10

0.20

0.20

0.20

0.00

0.00

0.00

0.00

Add: Depreciation
Term Loan

5.60

Working Capital Loan

Promoters Capital
Preliminary & Pre-Operative
& Contingency Written off
Total

1.40

7.00

9.78

7.22

7.25

7.29

7.23

7.15

7.04

Application
Fixed CapitalInvested

7.00

Increase in Current Assets

2.42

0.09

0.09

0.10

0.10

0.10

0.10

Repayment of Term Loan

1.24

1.87

1.87

0.62

0.00

0.00

0.00

Interest on Term Loan

0.73

0.57

0.32

0.08

0.00

0.00

0.00

Interest on WC Loan

0.35

0.35

0.35

0.35

0.35

0.35

0.35

Income Tax

0.03

0.05

0.08

0.13

0.14

0.13

0.13

Total

7.00

Opening Balance

0.00

0.00

5.01

9.31

13.84

19.85

26.50

33.07

0.00

5.01

4.30

4.53

6.01

6.65

6.57

6.46

0.00

5.01

9.31

13.84

19.85

26.50

33.07

39.54

Surplus
Closing Balance
V

4.77

2.92

2.71

1.28

0.58

0.58

0.58

Projected Balance Sheet

Particulars

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

8th Year

Promoters Capital-periodic

1.40

1.40

1.43

1.52

1.62

1.72

1.82

1.93

Retained Profit

5.26

10.73

16.48

22.64

28.88

35.07

41.19

47.22

Term Loan O/S

4.36

2.49

0.62

0.00

0.00

0.00

0.00

0.00

Working Capital Loan

2.58

2.58

2.58

2.58

2.58

2.58

2.58

2.58

Current Liabilities

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Sundry Creditors

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Liabilities

Total

13.59

17.20

21.10

26.74

33.07

39.37

45.60

51.73

Assets
Gross Fixed Assets

6.39

5.75

5.17

4.66

4.19

3.77

3.39

3.06

Less: Depreciation

0.64

0.57

0.52

0.47

0.42

0.38

0.34

0.31

Net Fixed Assets

Balance of Preliminary &
Pre-Op & Contingency

5.75

5.17

4.66

4.19

3.77

3.39

3.06

2.75

0.41

0.20

0.00

0.00

0.00

0.00

0.00

0.00

Current Assets

2.42

2.51

2.61

2.70

2.80

2.90

3.00

3.11

Cash in Bank / Hand

5.01

9.31

13.84

19.85

26.50

33.07

39.54

45.87

Total
VI -i

13.59

17.20

21.10

26.74

33.07

39.37

45.60

51.73

Break Even Analysis

FIXED COST
Salaries

5.55

5.83

6.12

6.42

6.75

7.08

7.44

7.81

Repair & Maintenance

0.07

0.07

0.07

0.08

0.08

0.08

0.08

0.08

Insurance

0.60

0.66

0.73

0.80

0.88

0.97

1.06

1.17

Administrative expenses

0.94

1.03

1.14

1.25

1.38

1.51

1.67

1.83

Depreciation

0.64

0.57

0.52

0.47

0.42

0.38

0.34

0.31

0.73

0.57

0.32

0.08

0.00

0.00

0.00

0.00

8.53

8.73

8.90

9.10

9.50

10.02

10.59

11.20

26.42

27.18

27.93

28.69

29.44

30.20

30.95

31.71

Wages

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Power Charges

1.09

1.12

1.15

1.18

1.21

1.24

1.27

1.30

Selling expenses

0.07

0.07

0.07

0.08

0.08

0.08

0.08

0.08

Interest on MM loan
Interest on Term loan
Total
VARIABLE COST
Raw Materials

Interest on WC loan

0.35

0.35

0.35

0.35

0.35

0.35

0.35

0.35

Total

27.93

28.72

29.50

30.29

31.08

31.87

32.66

33.44

VI -ii

Break Even Point And Ratio Analysis

Particulars

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

8th Year

Fixed Cost

8.53

8.73

8.90

9.10

9.50

10.02

10.59

11.20

Variable Cost

27.93

28.72

29.50

30.29

31.08

31.87

32.66

33.44

Total Cost

36.46

37.45

38.40

39.39

40.58

41.89

43.24

44.64

Sales

41.34

42.53

43.71

44.89

46.07

47.25

48.43

49.61

Contribution (Sales -VC)

13.42

13.81

14.20

14.59

14.99

15.38

15.77

16.17

B.E.P in % =(FC/Contributi

64%

63%

63%

62%

63%

65%

67%

69%

Break Even Sales =(BEP*Sale

Break Even Units in
quantity

26.28

26.90

27.38

27.98

29.19

30.78

32.50

34.37

500536

498135

493360

490851

499030

513041

528531

545521

2.88

4.58

6.38

8.74

11.36

13.94

16.49

18.99

13%

13%

13%

14%

14%

13%

13%

12%

Current Ratio
Net Profit Ratio
= (Net Profit/Sales)

VII

Debt Equity Ratio

DER = LONG TERM LOAN LIABILITY/(CAPITAL)

Particulars

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

8th Year

Term Loan O/S

4.36

2.49

0.62

0.00

0.00

0.00

0.00

0.00

Promoters Capital-periodic

1.40

1.40

1.43

1.52

1.62

1.72

1.82

1.93

DER

3.11

1.78

0.44

0.00

0.00

0.00

0.00

0.00

DER (Average 4 yrs)

VIII
Particulars
Cash flows After Tax
PV factor @ K=.13
Present Value @ K=.13

1.07
Pay Back Period
0th Year

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

-7.65

5.89

6.05

6.26

6.63

6.65

6.57

6.46

1.00

0.89

0.78

0.69

0.61

0.54

0.48

0.43

-7.65

5.22

4.74

4.34

4.07

3.60

3.15

2.75

-2.43

2.30

6.64

10.71

14.31

17.47

20.22

Cumulative Cash
Payback Period
IX
Particulars

1
Net Present Value (NPV)
0th Year

Cash flows After Tax

In between 1 and 2 year

-7.65

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

5.89

6.05

6.26

6.63

6.65

6.57

6.46

Net Present Value

X
Particulars
Cash flows Before Tax

17.90
Internal Rate of Return
0th Year
-7.65

1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

5.92

6.10

6.34

6.76

6.79

6.70

6.59

6.63

6.65

6.57

6.46

IRR Before Tax -5yrs

Cash flows After Tax
IRR After Tax -5yrs

75%
-7.65

5.89

6.05

6.26
75%

VIJAY ENGINEERING
ISO 9001:2008 Certified Company
Crisil Rating NSIC SE-3B
S.S.I.Registration No.27221201079
Mfg. & Supplier of Papad Making Machine, Chapati Making Machine,
Packaging Machine, Sealing Machine
207, Manish Chamber, Sonawala Lane, Goregaon (E). Mumbai - 400063.
Ph: 022-32960232,
09320267508 Email:
[email protected]
Website: www.vijayengineering.in /www.packpointindia.com
Ref. No. PP/7739

Date: May 25, 2015

To : Renju Mani.
IPO , Kerala
EMAIL [email protected]
Mobile 09446606178
QUOTATION
Sr.
No
1.

Particular

Qty

Model PP delux
Fully Auto Papad Machine with Electric Drier
(120 Kg to 150kg / 8Hrs Shift) 17 HP

Rate

Amount

5,65,000/-

5,65,000.00

Combine Machine.( Flour Kneading Machine &

Flat Sheet Making )Two In One.(2.Hp Motor)

Papad Sheeter With Cutter Machine With 1 Die

Roller. (Die Size : 7.5/5.5)(Roller Size

300.MM Dia)

Electric Drier (7 belt)

Total Installation Area of Machine

(LxBxH) (in Feet) (28 x 2.5 x 6 )
+ Vat @ 5 %
Total
Terms & Conditions :

Payment Terms: 50% advance along with order and balance 50% before
machine delivery. Payment made in favor of Vijay Engineering
Packing Charges : will be extra
Installation Charges : Rs.5000/Transportation charges pay by you. (Road Permit)
Company is not at all responsible for damage in Transit. To avoid these
conditions Customers are requested to do Transit Insurance in advance
at there end..
No advance will be refunded if the order is cancelled.
Subject to Mumbai Jurisdiction
Delivery : 60 days Approx, until & unless the balance is not received delivery will be
not made.

Warranty: We warranty the following parts of the

5,65,000.00
28250.00
5 93,250.00

Machinery 1) Electrical Moters, 2) Gear Box

Electrical Components e.g. Motors, Drivers, Switches etc. have at 1 year manufacturers
warranty, in case of defects arising in any such component it should be referred to its original
manufacturer.
Conveyor Belts are not covered under any sort of warranty.
Thanking you,
For VIJAY ENGINEERING
Minakshi Panchal

Project Report on Readymade Garments

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

Project Report on Readymade Garments

The readymade garment industry is considered an off-shoot of Indias Textile industry which
dates back to the middle of 19th century. The textile industry is the maximum revenue gathering
industry in the country. The industry can be divided in to two segments, the natural fibre
segment and the man made synthetic fibre segment. The industry even after the introduction of
power driven machines or mechanical process of button holding, stitching or embroidery,
continued to remain labour intensive and cheap labour is our forte.
The overall demand of clothing has gone up in the state because of increasing degree of
industrialisation, effecting clothing habits. The increasing level of communication leading to
increased travel and tourism has in turn created the demand for both seasonal and occasional
clothing.
LOCATION.
The unit here mentioned will set up in a rented building. Location plays a major role in overall
output of the unit .
There will not be any problems if the required power and communication facilities are available
. Then with out any doubt one can easily say that the land selected is very suitable these type of
units.
PROMOTER.
Name
:
Address
:
Qualification :
Experience :
LAND & BUILDING.
The unit will be set up in a rented building. It is made available on rented basis and the rent per
month is Rs. 2000. We have already considered the suitability of the location. The power,
Communication facility etc are available. Hence with out doubt one can say that the site
selected is very suitable for these types of units.

PLANT & MACHINERY.

The plant & machinery are enlisted in the economics of the project. They include sewing
machines, embroidery machines, furniture, cutting table etc. The cost of the same will be Rs.
1,25,000.00. The selected machinery can be made available from authorized suppliers of these
items.

RAW MATERIALS.
The raw materials needed include fabrics of different kinds and other sewing materials. They
are easily available and care will be taken on the quality of the same.
STAFF & LABOUR.
The unit will be operated in one shift. The staff and labors needed for the unit will be selected
from locally. The details of staff & labors are enlisted in the economics of the project.
OTHER EXPENSES.
The probable other experiences are considered in the economics of the project. They include
rent, electricity charges, transportation, communication, travelling, maintenance, postage &
stationery etc.
POWER
The total connected load required for running the unit is estimated as 2 H.P. only- single phase.
MANUFACTURING PROCESS.
The clothing are taken and cut to required design. Then they are stitched together to form the
product. The necessary buttons, zibs, hooks etc are fixed and it is then taken to ironing and
ready for sale. The embroidery works are carried out if necessary.
MARKETING.
The marketing of any product is the decision making factor of the existence of the unit and on
considering that the promoter has taken all the possible ways for marketing such as direct sales
and personal contacts etc. In fact the promoter had made a wide network of marketing for the
last one year and is capable for the forthcoming years also. The marketing area is concentrated
in retail shops of small towns and there are a number of dealers through which the product can
be sold. Most care will be taken in the change of fashion and trends as they are much affected in
the field of ready-made garments.
MODE OF FINACE
The promoter expects financial assistance from leading nationalized branch. This unit will be
financed under ESS scheme and eligible for 40% subsidy of total fixed investment .
ASSUMPTION
It is assumed that there will not be any major increase in the rate of raw material and any major
changes in prices will be compensated with corresponding change in product.
CONCLUSION
On revealing the various aspects of the project and studying the financial & technical features of
the scheme it can easily be noted that the above project will be a great success. The economics
of the project is detailed as follows.
FINANCIAL ASPECTS

FIXED CAPITAL
1.1 Land and Building
Rented at rate of Rs. 2000 per month.
1.2 Machinery and Equipments
Sl.
Description
No.
1
Stiching machine
2
Motor for Stiching machine
3
Overlock Machine
4
Scissors
1.3 Office Furniture items
Sl.
Description
No.
1
Working table
2
Cutting table
3
Fibre stool
4
Steel almirah
5
Steel Rack
6
Iron box

Qty.
1
1
8
1
2
1

Working capital
2.1 Staff and Labour (per month)
Sl
Description
No
no
1
Manager cum designer
1
2
Cutting master
2
3
Skilled workers
6

Qty.

Rate (Rs.)

Value (Rs.)

6
8000
6
3000
1
20000
5
500
Sub total : 88500
Rate (Rs.)

48000
18000
20000
2500

Value (Rs.)

16000
16000
12000
12000
500
4000
4500
4500
4500
9000
2500
2500
Sub total : 48000

2.2 Raw Materials (per month)

Sl
Description
no
1
Clothes for Churidars
2
Clothes for Nighty
3
Other items like laze, buttons,
threads
4
Packing materials

Salary (Rs.)

Total (Rs.)

6000
6000
5000
5000
4000
24000
Grand total : 35000
Qty

Rate (Rs.)

Total (Rs.)

2400 mtr
1800 mtr

60
45
5000

144000
81000
5000

1800
pieces

9000

Grand total : 239000

2.3 Utilities and Other Contingent Expenses (per month)
Sl
Description
Amount Rs.
No.
1
Power
300
2
Water
50

3
4
5
6
7

Stationary
100
Repair and maintenance
1000
Transportation
2500
Telephone
250
Miscellaneous
1000
Grand total : 5200
Total Working Capital : 279200
3

TOTAL CAPITAL INVESTMENTS

Land
Building
Plant & Machinery
Working Capital
Grand total : 415700
SOURCE OF FINANCE
Promoters Contribution
Term loan for machinery
Working Capital Loan

Rented
Rented
136500
279200

83140
109200
223360
Grand total : 415700

5 Financial Analysis
5.1 Cost of Production (per year)
Sl
Description
Amount Rs
no
1
Total recurring cost
279200
2
Depreciation on machinery @10%
8850
3
Depreciation on furniture @20%
9600
4
Interest on Term Loan @14%
15288
5
Interest on Working Capital Loan @14%
31270
Grand total : 344208
5.2 Turnover (per year)
Sl
Items
Qty
Rate Rs
Total Rs
no
1
Churidar
800
600
480000
2
Nighty
800
200
160000
Grand total : 640000
5.3 Net Profit (per year)
Turnover
640000
Cost of production(-)
344208
Total : 295792
6 Net Profit Ratio
(Net profit per year/Turnover per year)x100 = 46.2175 %

7 Break even point

Sl
no
1
2
3
4

Description

Rent for one year

Total depreciation
40% salary and wages
40% of utilities and other contingent expenses
Grand total : 235410
B.E.P = (Fixed cost x 100)/(Fixed cost+Net profit)
= (235410x100)/(235410+295792)
= 23541000/531202
= 44.316%

Amount Rs
24000
18450
168000
24960

The Project is Economically viable and Technically feasible. The project is submitted for
approval.

Project Report of Pickle Unit

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

Project Report of Pickle Unit

1.

INTRODUCTION

The project report includes the techno economic feasibilityof setting up and functioning of a
food production unit under the name and style of PICKLES. The project is at Kutiyattur in
Kannur District.
2.

PROMOTER.

The unit will function as a sole proprietary concern under the proprietor of Mr. Sivadasan
,aged 45,residing at Kuttiyattur in Kannur district. The promoter has 15 years experience in
marketing of pickles in Kannur and Kasargod District. And he has also got training in pickle
making from Food craft Institute Calicut.
3

NATURE OF THE PROJECT.

The proposed activities of the unit comprised of production and sale of Pickles.

LOCATION AND INFRASTRUCTURAL FECILITIES.

Location.: The project is proposed to be located at Kuttiyattur in Kannur District.

Land and Building.: The proposed unit will function in a rented building bearing
Building number KP I/155 Of Kuttiyattur Grama Panchayath. The unit required an building
area of 900 Square Feet. .The land and building space is enough for proper carrying out of
activities of the unit.
Raw materials.:
The important raw materials required by the units are
Mango,Lime,Ginger,Garlic,Pickle powder and Oil. All the raw materials required for the unit
is available in any quantity at reasonable rate from local market. This place is well known for
Kuttiattur mango which has highly demand in Malabar area. So there will not be any scarcity
for the availability of raw materials.
Transportation.: The location of the unit is aside the main road and is also nearest to
Kannu r Muncipality. There is enough space in premises for parking the vehicles and smooth
flow of men and materials.
Labour.: The labour can easily procure from local places at reasonable cost at any volume
Power. : The unit requires 8 HP power to commence production. Power will be arranged by
the unit.

Water.: The main water requirement for the unit is for drinking and sanitation purpose of
workers. There is enough well water facility in the premises of the unit. Thus it can be
concluded that the location of the unit is blessed with all infrastructural facilities.
5. TECHNICAL FEASIBILITY.
Scope and Marketing
The proposed product of the unit is pickle .The pickles being daily used food products
has a ready market always. Unlike past all class of consumers, consuming readily available
pickles from market rather than making them in home. The unit proposed to making good
quality pickles at reasonable cost, therefore it can easily establish its brands name in market.
The people now a days depending ready to eat pickles due to factors like lack of time to make
them, efforts involving in preparing pickles. The promoter has experience in food product
business for last few years, and has good contact with various markets, grocery shops , hotels
etc. All these will enable him to market the products without any difficulty. Thus by
consideration of all above factors , it can conclude that there is high scope for pickles
manufacturing units.
Govt. licenses and permissions : The unit has already obtained all the required licenses.
Byproduct and effluent : The unit will not generated any byproduct and effluent.
6. Cost of the Project
The detailed cost of the project is under
Fixed Assets
Machinery
Other assets
Electrification
Preliminary and pre-operative
Working capital
Total
7. Means of finance
Promoters Contribution
Term loan from Bank
Working Capital
from bank
Total

Rs. In lakhs
7.00
0.60
0 .20
0.20
2.50
10.50
3.50
5.00
2.00
10.50

8. Economic Feasibility
The following annexure are annexed herewith to reveal the economic viability of the
unit.
a. projected working results and profitability
b. Projected Cash flow statement
c. Projected balance sheet.
d. Statement of financial viability indices.
9. Conclusion.
From the above analysis, explanation and projection annexed, it could be assured that
the unit can function profitably .
Annexure I
Statement of estimated production and sales at full capacity.
Estimated daily production

200 . Kg

No. of estimated working days

300 days

Total estimated production

60000 Kg

Sale rate per kg @ Rs. 80/Estimated annual gross receipt

Rs. 4800000/-

Annexture II
Statement of Depreciation
Particulars
Machinery
\opening balance
Add. addition
Total
less depreciation
15 %
Closing Balance
Other Assets
\opening balance

Years (Rs. In lakhs)

III
IV

II

0
7.00
7.00
1.05

5.95
0.00
5.95
.89

5.06
0.00
5.06
.76

4.30
0.00
4.30
.65

3.65
0.00
3.65
.55

5.95

5.06

4.30

3.65

3.15

0.00

0.90

0.81

.73

.66

Add. addition
Total
less depreciation
10 %
Closing Balance
W.D.V
Depreciation

1.00
1.00
0.10

0.00
0.90
0.09

0.00
.81
.08

0.00
.73
.07

0.00
.66
.06

0.90
6.85
1.15

0.81
5.87
.98

0.73
5.03
.84

0.76
4.31
.72

0.60
3.70
.61

Years (Rs. In Lakhs)

III
IV
3.00
2.00

V
1.00

Annexure III
Statement of loan repayment and interest on loan
Term loan Rs. 5 lakhs @ 13 % interest
Repayment in 5 years
Particulars
Opening
Balance
Add Addition
Add interest
Total
Less paid during
the year
Principal
Interest
total
Closing Balance

I
0.00

II
4.00

5.00
.65
5.65

0.00
0.52
4.52

0.00
0.39
3.39

0.00
0.26
2.26

0.00
0.13
1.13

1.00
0.65
1.65
4.00

1.00
0.52
1.52
3.00

1.00
0.39
1.39
2.00

1.00
0.26
1.26
1.00

1.00
0.13
1.13
0.00

Annexure IV
Statement of Working Capital requirement
Particulars
I. Current Assets
a. Raw materials 2 week
b. finished goods 5 days
c. sundry debtors 2 week
D. Total
II Current liabilities

II

1.20
0.60
1.20
3.00

1.26
0.63
1.26
3.15

Years (Rs. In Lakhs0

III
IV
1.32
0.66
1.32
3.30

1.38
0.69
1.38
3.45

V
1.44
0.72
1.44
3.60

a. Sundry creditors 1 week

Total
Net working capital
Annexure V

0.50
0.50
2.50

0.55
0.55
2.60

0.60
0.66
2.70

0.65
0.65
2.80

0.70
0.70
2.90

Statement of projected working results and project profitability

Particulars
A .Estimated gross receipt at full
capacity
B. Capacity utilization
C. Income gross sale
D. Direct expenses
1.Raw materials.
2. Wages.
3. Other direct cost
TOTAL
E. Gross profit (C-D)
F . Indirect cost
1. Interest on loan
2. Depreciation
3. Other administrative expenses
TOTAL

Years (Rs. In lakhs)

III
IV

I
48.00

II

70%
33.60

75%
36.00

80%
38.40

85%
40.80

90%
43.20

18.63

19.96

21.29

22.62

23.95

6.90
0 .60
26.13
7.47

7.40
0 .64
28.00
8.00

7.90
0 .68
29.87
8.53

8.40
0 .72
31.74
9.06

8.90
0.76
33.61
9.59

0.91
1.15
1.61

0.78
0 .98
1.73

0 .65
0.84
1.85

0.52
0.72
1.97

0.39
0.61
2.09

3.67

3.49

3.34

3.21

3.09

G. Profit before tax

3.80

4.51

5.19

5.38

6.50

H. Less income tax @10%

0.38

0.45

0.50

0.51

0.65

I. Profit after Tax(G-H)

3.42

4.06

4.69

5.34

5.85

0.98

0.84

0.72

0.61

5.53

6.06

6.46

J. Depreciation

1.15

NET CASH ACCRUED (I+J)

4.57

5.04

Annexure VI
Statement of Projected Cash Flow
Particulars
A. Source of fund
1. Promoters contribution
2. Bank loan
3. Net cash accrued from
operation
Total
B. Application of fund
1. Capital expenditure
2. Change in working capital
3. Loan repayment
4. Drawing by the proprietor
Total
C. Opening Cash Bank balance
D. Add net Surplus(A-B)
E. Closing balance

Years (Rs. In lakhs0

III
IV

II

3.50
7.00
4.57

0.00
0.00
5.04

0.00
0.00
5.53

0.00
0.00
6.06

0.00
0.00
6.46

15.07

5.04

5.53

6.06

6.46

8.00
2.50
1.00
1.00
12.50
0.00
2.57
2.57

1.33
1.00
1.00
3.33
2.57
1.71
4.28

1.33
1.00
1.00
3.33
4.28
2.20
6.48

1.33
1.00
1.50
3.83
6.48
2.23
8.71

1.33
1.00
1.50
3.83
8.71
2.63
11.34

Annexure VII
Statement of financial viability indices
D.S.C.R
Particulars
A. Net Cash accrued from
operation
B. Add interest on loan
Total fund available (A+B)
C. .Repayment of loan
D. Add interest
E. Debt service
requirement(C+D)
D. D.S.C.R.
Average D.S.C.R

Years(Rs. In lakhs)
III
IV

II

4.57

5.04

5.53

6.06

6.46

.91
5.48
1.00
0.91
1.91

.78
5.82
1.00
0.78
1.78

.65
6.18
1.00
0.65
1.65

.52
6.58
1.00
0.52
1.52

.39
6.85
1.00
0.39
1.39

2.86
3.82

3.26

3.74

4.32

4.92

Break Even Analysis

Particulars
a. Sales
b. Variable cost
c. Contribution
d. Fixed cost
e. Breakeven point

II
36.00
28.00
8.00
3.49
43.62

Years (Rs. In lakhs)

III
38.40
29.87
8.53
3.34
39.15

II

Years(Rs. In lakhs)
III
IV

3.50
2.42
6.00
0.50
12.42

3.50
4.25
5.00
0.55
13.30

3.50
6.71
4.00
0.60
14.81

3.50
9.32
3.00
0.65
16.41

3.50
12.44
2.00
0.70
18.64

6.85

5.87

5.03

4.31

3.70

1.80
1.20
2.57
12.42

1.89
1.26
4.28
13.30

1.98
1.32
6.48
14.81

2.07
1.38
8.71
16.47

2.16
1.44
11.34
18.64

I
33.60
26.13
7.47
3.67
49.12

IV
40.80
31.74
9.06
3.21
35.43

V
43.10
33.61
9.61
3.09
32.15

Annexure VIII
Statement of projected balance sheet
Particulars
A. Capital and liabilities
1.Promotors Capital
2. Reserve and Surplus
3. Loan Fund
4. Current liabilities
Total
B. Assets
1. Fixed Asset
2. Current Asset
Inventory
Debtors
Cash Bank Balance
Total

Project Profile on Manufacturing of Palm Plate

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

1.

Introduction :

This Enterprise is a proposed micro enterprise for the manufacture of Palm plates. It is a
sole proprietary concern.. Now a day the importance of biodegradable materials is very high
since polyethylene wastes poses severe threat to the universe. The disposable plates and food
packing materials manufactured from easily available areca nut palm leaves is a better substitute
for disposable polythene and paper plates. The Govt. is restricting the use of plastic materials
and hence eco-friendly products are preferred to plastic products. There is an ever increasing
demand for these items. Keeping this in mind, the promoter has ventured this unit..
2. Manufacturing process

Our products are manufactured from fallen dry sheaths of Betel nut trees. The areca sheath
when dried will fall from the tree and it is collected from the farms fresh and used for making
products. These sheaths are available in plenty in the South India region. The usage of these
leaves was started from our ancestors. We are only making them into attractive shapes to meet
the different customer requirements.

3. Infrastructure facilities:
a) Power:
Total Connected load of power estimated is 3 HP. The entrepreneur has already confirmed the
availability from KSE B.

b) Water:
Water is required for soaking, cleaning and general purpose and it is available in plenty near to
the site.
c) Transport:
The proposed site is located on the side of road.
d) Labour:
A total of 3 workers are required in addition to the promoter. All these skilled and unskilled
workers can be recruited locally.
e) Others:
Telephone and Postal facilities are also available nearby.
4. Raw Material:
The raw material required by the unit is areca nut palm leaf. A relative of the promoter has an
areca nut plantation which could supply required quantity palm leaves to the unit. The
entrepreneur has ensured the annual requirement of raw material.
5. Production Capacity:
The proposed unit is rated for a production capacity of 31,250 pieces per month on
single shift basis. The expected capacity utilization is 80%, for the 1st and 90% from the 2nd
year onwards.
6. Marketing:
The product has a supply constraint in the market and the demand is very high. The market is
expected to have a sustained higher growth for the coming years. The Govt. policies, changing
trend and sustainable development concept will increase the importance of the product and its
marketability.
7. Pollution:.
The activity does not produce any pollution.

8. Machinery suppliers
1. Magnus coimbature
Mobile : +91 9944422522
: +91 95885559502
Hydraulic based Automatic machine and Flywheel type Manual machine.

8 Cost Estimate of of Building

9. a . MACHINERY AND EQUIPMENT`

Sl.No.

1
2

3
4
5

Item
Machine with
die for 10
tray

Quantity Price/unit
24,000.00

Machine with
die for 8 tray
Machine with
die for 10
round
Machine with
die for 9 tray
Machine with
die for 8 tray

22,000.00

Total cost

1200.00
1
1

25200
1100.00

23100

25,000.00
1
1

24,000.00

1250.00

26250

1200.00

25200

1150.00

24150

1200.00

25200

400.00

8400

23,000.00
1

Machine with
die for 17 cm
square

Extra die

Total

Vat

24,000.00

8,000.00

157500

b. Plumbing Items

Sl.No.

Item
Water
Tank,
Pump set
&
Plumbing
1
works
L
TOTAL

Price/un
it

Quantity

Vat

25,000.0
0

Total cost

1250

Total Fixed Expenses

26250
26250

283750

10. WORKING CAPITAL

(A). Raw materials required per month at 80% Capacity Utilisation
Sl.No.
1

Item

Quantity

Areca nut leaves

Total
Total Raw materials required

B. Wages and salaries

1 Proprietor cum Manager
3 skilled labour
Total
Add 20% benefits

10,000

1
2

Total

Rate
0.5

8000.00
6000.00

(C). Utilities and contingencies per month

1. Power charges
2. Rent

:
:

500

3. Travel exp / Transport

000

Value/month
5000
5000.00
5000.00

Value for 1
year
60000
60000.00
60000.00

8000.00
12000.00
20000.00
4000.00

96000.00
144000.00
240000.00
48000.00

24000.00

288000.00

4. Repairs and Maintenance

000

5. Insurance

00

6. Telephone charges

00

7. Stationary and postage

00

8. Miscellaneous expenses

00
000

Sub Total
Total working capital requirement

Particulars

No. of days

Raw material

45

Utilities and contingencies

30

3
4

WIP & Finished goods

Sundry debtors

14
7

Total
Total working capital requirement of the
unit, Say

9,408.00
18,816.00
4,300.00
46924

: 47000.00

11. TOTAL CAPITAL

1. Fixed Capital (V)

283750.00

2. Working Capital (Vl)

47000.00

Total Capital

330750.00

153187.50

a) Term Loan (75% of F.C)

212812.50

b) Working Capital Loan (75 %)

35250.00

Sources of Funds :1. Own Capital

Working
Capital
14,400.00

2. Loan from Bank

12. COST OF PRODUCTION PER ANNUM

1. Total recurring expenditure per annum
(a) Raw materials
(b) Wages and salaries
(c). Utilities and contingencies
2. Depreciation on building if any
@ 5%

60000.00

288000.00

84000.00

5000.00

3. Depreciation on machinery and

equipment 10%

15750.00

4. Depreciation of office equipment 20%

0.00

5. Interest on bank loan @ 14%..

34729.00

487479.00

Total

13. RECIEPT (TURNOVER PER ANNUM)

Sl No.

Products
1 Palm plates

Selling
Qty Price
2900
2.00
0

Value Per
Month
58000.00

Total
Total Sales revenue per annum
Cost of Production Per Month:
Sl. No.
Particulars
1

58000.00

Amount
Rs.

Raw Materials
5,000.00

2
3
4
5
6
7

Salary/Wages
Utilities
Interest on Borrowings @ 14% pa.
Depreciation on Building @ 5% pa.
Depreciation On Machinery @ 10% Pa.
Miscellaneous Selling Expenses

24,000.00
7,000.00
2,894.08
416.67
1312.50
0.00

Value Per
Annum
696000.00
696000.00
696000.00

Total
Sales recipt per month

40,623.25
58,000.00

14. (a) PROFIT :

Profit per Year

Profit per month

Tax 30 %
Net Profit per Year

Break Even Point

Fixed cost
Variable Cost
BEP in %ge

:
:
:

Debt Service Coverage

Ratio

ie, DSCR

(b) Net Profit Ratio:

15. RATE OF RETURN ON

TOTAL INVESTMENT

Cost of production per year - sales recipt per year

208521.00
17376.75
62556.00
145965
Fixed Cost x 100/(SalesVariable Cost)
104479.00
378000.00
32.86
(Net Profit+ Depreciation)

:
(Loan repayment + Interest on Bank Loan)

1.92
Net Profit*100
=
Annual Turnover
.

20.97

Net Profit*100
=
Total Investment
.
44.13

Project Report on Note Book Manufacturing

National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD 500 045

PROJECT AT A GLANCE

Product Name

Note books, Note pads, Record Books

Project Cost

1688500

Term loan

365000

Working Capital loan

900000

Own contribution

423500

Net profit (1st year)

721000

Net Profit Ratio (1st year)

12.22

BEP (1st year)

35.40

DSCR (1st year)

2.06

INTRODUCTION
Stationery items like note books, Record books, note pads, etc are
always in demand for school and college students. The demand for note books is
more in the months of June to August in every year. Similarly, Record books are
essential in every office, institutions, organizations, etc. The size of the products
will be decided as per the local market demands. Book production is the process of
assembling a book from a number of folded or unfolded sheets of paper or other
material. It usually involves attaching a book cover to the resulting texts-block.
Details of the products are given below

Item

size

pages

rate

Note book

8x10

160

22.5

Record book

8.5"x11

100

32

Note pads

4x5

50

MARKET POTENTIAL
Basic raw materials for book binding are white sheets of paper ruled
and unrolled, outer cover, stitching wire, jute twin, gum which are available in
common market. To set up such units the only requirement is skilled labor. With
the rise in economic activities and literal activities the market potential for book,
binding is continuously increasing. Now the students prefer to use binding, rolling
books or plain exercise books and left the idea to stitch papers in their homes.
These products are largely sold through school societies, retail outlets and
supermarkets.

MANUFACTURING PROCESS
First of all the papers are arranged in order. Required number of
Pages are perforated as desired and stitched with cover page and gummed .After
cutting the pages uniformly they are bound and packed. White paper and card
board of different weights are required for binding of books. Binding cloth,
flowered colored sheets, glue and thread etc, are required. Sheets of paper and
paper boards are purchased from the market. The paper and paper board are then
cut to size in the cutting machine. The papers are then stitched and bound with the
help of glue and thread etc.

QUALITY SPECIFICATIONS
The bounded book must have the finish and look with good pressing
and secured stitching done.

CAPACITY
2,00,000 books , 40000 records and 40000 note pads per year in 4
cycles for the first year and additional 5% in the subsequent years.

IMPLEMENTATION SCHEDULE

The major activities in the implementation of the project has been

listed and the average time for implementation of the project is estimated at5
months:

Sl no

1
2
3
4
5
6
7
8

Activity

Preparation of project report

Registration and other formalities
Sanction of loan
plant and machinery procurement and
installation
Electricity connection and installation
procurement of raw materials
Recruitment of staffs
commercial production

Time in
months

1
1
2
1
1
1/2
1/2
1

Many of the above activities shall be initiated concurrently and the production can
th
be started from 5 month onwards.

ECONOMICS OF THE PROJECTS

ASSUMPTIONS
The statement of production and profitability is based on
the following assumption.
1 Number of working days
2 Number of shifts
3 Capacity utilization
4
5
6
7
8
9

Depreciation
Repairs and maintenance
interest on bank loan
Administrative expenses
selling expenses
Wage increases

300
1
5% addition in every
year
10% on fixed assets
2% on equipments
13%
1% of sale
2% of sale
5% in annum

FIXED CAPITAL

1. Land and Building

The proposed unit is going to set up in a rented building with a
rent of Rs.2000/ per month.
2. Machineries and Equipments
The machineries required for the production are paper cutting
machine, binding machine, numbering machine etc. The details of
machineries and equipments with their costs are given below.

Sl No
1
2
3
4
5

Item
Paper cutting machine 32'' with 1
HP motor
Perfect Binding Machine Automatic
Model 950Z up to 310mm Binding
Length
Numbering machine
Manual Spiral/comb/wiro/press
Binder WR310
Hand tools
Total

No
1

Rate Amount
88000

88000

1 285000

285000

5000

5000

15000

15000

1 set

1500
394500

3.Furnitures and fittings

sl.no
1
2
3
4
5

Item
Decoration and fittings
Stools
Shelf fitted on wall
Table
Others
Total

No Rate Amount
1 25000
25000
4
600
2400
2 5000
10000
2 1500
3000
5000
5000
45400

4.Pre-operative expenses
Pre operative expenses include the cost of preparation of project
report, license fee, Travelling expenses etc. It is estimated as Rs.13600/-.
5.Cost of Electrification
The cost of electrification is estimated as Rs 35000/- which includes
the purchasing of materials, installation charge, connection charge etc.

WORKING CAPITAL RQUIRMENTS

1.Raw materials
Paper, cover pages, jute twine, iron wire, cloth etc. are the raw
materials required and they are cheaply available in the local market.

Sl
No
1
2
2
3
4
5
6

Item
Paper
Cover Page for
record book
Cover Page
jute twine
Iron wire
White flour
Cloth

Qty

Unit Rate

Amount

275

ream 600

165000

10000

nos

50000

50000
100
100
50
50

nos
kg
kg
kg
m

2.5
25
50
20
40

125000
2500
5000
1000
2000

Total

350500

2.Salaries and wages

The proposed unit will provide employment to 4 persons including 2
unskilled workers their salary and wage details are given below.
Sl
No
1
2
3

Designation/Category No
Manager
Skilled workers
unskilled workers
Total

1
1
2

Monthly
salary
10000
8000
7000

Amount
10000
8000
14000
32000

3.Other Monthly Expenses

Electricity ,Rent, phone bill, employee insurances ,transport. Etc are
the other expenses. The unit will provide insurance facilities to the employees.

Sl
No
1
2
3
4
5
6

Item

Amount

Power
Rent
Phone bill
stationery
Insurance to employees
Transport and
conveyance
Total

2500
2000
500
500
1000
12000
18500

4.Working capital calculation(one cycle=3 months)

Total
amount

Sl No

Item

period in days

1
2

Stock of raw materials

Work in progress
Stock of finished
goods
Receivables
Total
ROUNDED TO

30
10

420600
140200

15

210300

20

280400
1051500
1050000

3
4

One cycle expenses

salary for 3 months

1050000
96000

other exp for 3 months

W C for one cycle

Rounded to

55500

1201500
1200000

PROJECT COST AND MEANS OF FINANCE

The total project cost is Rs. 1688500/- and 75% of the cost is taken
as loan from bank and the 25% is the contribution of the proprietor.
PROJECT COST
Sl
No
1
3
4
5
5
7

Particulars
Land and building
Machineries & equipments
Electrification
Furniture and fittings
Prelim. & pre-operative
expenses
Working capital
Total

Amount
Rented
394500
35000
45400
13600
1200000
1688500

MEANS OF FINANCE
Sl
No
1
2
3

Particulars
Term Loan
Working Capital Loan
Promoters contribution
Total

Amount
365000
900000
423500
1688500

SALES PER CYCLE

Sl No
1
2
3

Item
Qty
Note books
50000
Record Books 10000
Note pads
10000
Total

SALES FOR 1

ST

YEAR

Unit
nos
nos
nos

Rate
22.5
32
3

Amount
1125000
320000
30000
1475000

, 14.75*4=59 LAKH

COST OF PRODUCTION & PROFITABILITY STATEMENT(in lakhs)

Particulars
No. of working days
No. of shifts
Capacity utilization
Production
SALES
COST OF
PRODUCTION
Raw materials
Salaries
Wages
Power charges
Repairs & maintenance
Insurance
Depreciation
TOTAL
GROSS OPERATING
PROFIT
EXPENSES
Administrative & selling
expenses
Other Financial expenses

1st
Year
300
1
60
59
59

2nd
Year
300
1
65
64
64

3rd
Year
300
1
70
69
69

4th
Year
300
1
75
72
72

5th
Year
300
1
80
77
77

42
2.16
1.68
0.3
0.08
0.08
0.47
46.77

44.1
2.27
1.76
0.33
0.09
0.09
0.47
49.11

46.31
2.38
1.85
0.36
0.1
0.1
0.47
51.57

48.63
2.5
1.94
0.4
0.11
0.11
0.47
54.16

51.06
2.63
2.04
0.44
0.12
0.12
0.47
56.88

12.23

14.89

17.43

17.84

20.12

1.77

1.95

2.15

2.37

2.61

1.56

1.72

1.89

2.08

2.29

Interest on bank Loan

TOTAL EXPENSES
Net operating profit
Income tax
Net profit
Add depreciation
Cash surplus

1.52
4.85
7.38
0.17
7.21
0.47
7.68

1.2
4.87
10.02
0.3
9.72
0.47
10.19

0.88
4.92
12.51
0.43
12.08
0.47
12.55

0.52
4.97
12.87
0.44
12.43
0.47
12.9

0.2
5.1
15.02
0.55
14.47
0.47
14.94

CASH FLOW STATEMENT(amounts in lakhs)

Particulars
SOURCE OF FUNDS
Share capital
Profit before taxation
Depreciation
Increase in bank loan
Total
DEPOSITION OF FUNDS
Prelim & pre-operative
expenses
Increase in capital expenditure
Decrease in bank loan
Decrease in unsecured loans
Interest on bank loan to bank
Taxation
Dividend on equity
Total
Opening balance
Net surplus
Closing balance

1st
Year

2nd
Year

3rd
Year

4th
Year

5th
Year

1.22
7.38
0.47
12.65
21.72

10.02
0.47
0
10.49

12.51
0.47
0
12.98

12.87
0.47
0
13.34

15.02
0.47
0
15.49

0.14

4.89
2.53
0
1.52
0.17
0
9.25
0
12.47
12.47

0
2.53
0
1.2
0.3
0
4.03
12.47
6.46
18.93

0
2.53
0
0.88
0.43
0
3.84
18.93
9.14
28.07

0
2.53
0
0.52
0.44
0
3.49
28.07
9.85
37.92

0
2.53
0
0.2
0.55
0
3.28
37.92
12.21
50.13

VARIAB
LE

CO
ST

FIX
ED

CO
ST

BREAK EVEN ANALYSIS(amounts in lakhs)

Particulars
Sales

1st
Year
59

2nd
Year
64

3rd
Year
69

4th
Year
72

5th Year
77

Salaries
Repairs & maintenance
Administrative expenses
Insurance
Depreciation
Interest on bank Loan
TOTAL

2.16
0.08
0.59
0.08
0.47
1.52
4.9

2.27
0.09
0.64
0.09
0.47
1.2
4.76

2.38
0.1
0.69
0.1
0.47
0.88
4.62

2.5
0.11
0.72
0.11
0.47
0.52
4.43

2.63
0.12
0.77
0.12
0.47
0.2
4.31

Raw materials
Wages
Power charges
Selling expenses
TOTAL

42
1.68
0.3
1.18
45.16

44.1
1.76
0.33
1.28
47.47

46.31
1.85
0.36
1.38
49.9

48.63
1.94
0.4
1.44
52.41

51.06
2.04
0.44
1.54
55.08

BEP in % of installed
capacity

35.40

28.8

24.2

22.6

19.7

PROJECTED BALANCE SHEET(amounts in lakhs)

Particulars
LIABILITIES
Share capital
Reserve & surplus
Bank loan
Total liabilities
ASSETS
Opening stock
Gross block
Less depreciation
Net block
Investment
Current assets
Cash & Bank
balance
Total assets

1st
Year

2nd
Year

3rd
Year

4th
Year

5th
Year

1.22
12.47
12.65
26.34

1.22
18.93
10.12
30.27

1.22
28.07
7.59
36.88

1.22
37.92
5.06
44.2

1.22
50.13
2.53
53.88

0
11.86
0.47
11.39
0
11.39

12.47
11.39
0.47
10.92
0
23.39

18.93
10.92
0.47
10.45
0
29.38

28.07
10.45
0.47
9.98
0
38.05

37.92
9.98
0.47
9.51
0
47.43

14.95

6.88

7.5

6.15

6.45

26.34

30.27

36.88

44.2

53.88

REPAYMENT SHEDULE OF BANK LOAN(amounts in lakhs)

Year Installment

term

no

loan

1
2
3
4

12.65
12.0175
11.385
10.7525

5
6
7
8

10.12
9.4875
8.855
8.2225

9
10
11
12

7.59
6.9575
6.325
5.6925

13
14
15
16

5.06
4.4275
3.795
3.1625

17
18
19
20

2.53
1.8975
1.265
0.6325

Installment Balance
0.6325
0.6325
0.6325
0.6325
2.53
0.6325
0.6325
0.6325
0.6325
2.53
0.6325
0.6325
0.6325
0.6325
2.53
0.6325
0.6325
0.6325
0.6325
2.53
0.6325
0.6325
0.6325
0.6325
2.53

12.018
11.385
10.753
10.12
9.4875
8.855
8.2225
7.59
6.9575
6.325
5.6925
5.06
4.4275
3.795
3.1625
2.53
1.8975
1.265
0.6325
0

Interest
0.41
0.39
0.37
0.35
1.52
0.33
0.31
0.29
0.27
1.2
0.25
0.23
0.21
0.19
0.88
0.16
0.14
0.12
0.1
0.52
0.08
0.06
0.04
0.02
0.2

PROJECTED DEBT SERVICE COVERAGE RATIO(amounts in lakhs)

Particulars
Net profit
Depreciation
Rent

1st
Year
7.21
0.47
0.24

2nd
Year
9.72
0.47
0.25

3rd
Year
12.08
0.47
0.26

4th
Year
12.43
0.47
0.27

5th
Year
14.47
0.47
0.28

Interest on bank
loan
Repayment of loan
DSCR
AVERAGE DSCR

1.52

1.2

2.7
2.06

2.7
2.74

0.88
2.7
3.5
3.39

0.52

0.2

2.7
3.85

2.7
4.76

CONCLUSION
From the forgoing pages and the financial information sated in the
subsequent pages, it can be seen that the project can generate sufficient funds to meet its
financial commitments and to share an adequate return to the promoters. Thus, the project is
technically feasible, economically viable and financially sound and hence it warrants a favorable
consideration by the financial institution.