FOR

M/S MEERA PAINTS AND VARNISH CO.PVT.LTD

AT MEERUT

Activity:
Paint Varnish and Similar Coatings Manufacturing

(Particularly for Sports Goods and Industries)

Prepared by:
Om Survey & Business development Services
Court Compound Meerut, 8439148539
Email: [email protected]
 TABLE OF CONTENT

SR.NO DESCRIPTION

1. Proof of Identity

2. Proof of Residence

3. Proof of Business Enterprise

4. Income Tax Return

5. Projected Balance Sheet

6. Project Report
1. Highlights
2. Introduction
3. Promoters and Management
4. Market and Demand
5. Project Particulars and Means of Finance
6. Finance Profile
7. Projected Balance Sheet
 Project Highlights

1. Name & Address : M/S Meera Paints and Varnish Co.P.Ltd

10 Bagpat Road Meerut, Meerut-250002

2. Constitution : Proprietorship

3. Line of activity : Paints and Similar Products Manufacturing

4. Project Cost. : (Amount in Lakhs)

(a) Land & site development : N.A. (Owned)

(b) Building : N.A.(Owned)
(d) Misc. fixed assets : 15.00
(e) Working capital : 96.00
(Ist year) 111.00

5. MEANS OF FINANCE.

(a) Promoter's contribution : 5.50

(b) Loan (Bank) : 105.50
---------
111.00

6. Employment potential : 8 persons

 INTRODUCTION

Mr. Mukul Mittal S/O Rajendra Prakash R/O 117 Bazar Khair Nagar MEERUT is interested

in restarting a closed Business having main activity of Manufacturing of Paints Varnish and

Similar Products (Majorly used in Sports Industries).

The good prospects of the proposed activity and high return on Investment attracted the

proprietor to Successfully Restart this activity.

In Past the Firm Managed to have good Revenue Per Month but due to some reasons the

business activity ceases.

The promoter has in-depth knowledge about this activity and thus will not face any problem

in carrying out these activities smoothly.

Note: The Project Report is prepared without taking subsidy element so as to

find out the viability of the project without subsidy element.

 PROMOTERS & MANAGEMENT

Mr. Mukul Mittal S/O Rajendra Prakash R/O 117 Bazar Khair Nagar MEERUT is himself will be
the promoter of the proposed activity.

The promoter/Applicant, after being satisfied about the scope of the proposed activity, decided to

pool his resources to promote the proposed unit.

As far as the management of the unit is concerned, it will be managed by the promoter himself

who is Skilled, Trained has vast experience in this field of activity and to manage the day to day

activities the firm since 1974 will be employing experienced staff which will be available locally.

Considering, the vast scope and potential of the promoter, it can be safely concluded that the firm

will be a success under his able management.

 MARKET AND DEMAND

Keeping in view the present view the present scenario of the Sports sector Demand and

capacity of the population to purchase, the Sector can’t be ignored. With the Increase in Size

of Population and Increasing economy it is expected as per the reports of major associations

of sector that Sports Goods and allied market will Increase at the Rate of 10% annually.

Meerut is the Largest Market of Sports Goods Manufacturing not only in India but in whole

Asia. Market has more than 1000 big Manufacturers/Suppliers, 50 International Brands nearly

300 Middle Players along with Small Retailers all together comprising to an annual turnover

of more than 1000 crores.

All these Producers Suppliers Wholesalers and Retailers depend on Paint and similar products

Manufacturing Units. Additional to these Manufacturers in similar industries of nearby States

(Punjab (Ludhiana) Delhi, Haryana Bihar Uttrakhand) also depends On Paint Varnish and

Similar coating and other products manufacturing units as proposed above.

Keeping in view the aforesaid, the unit is not expected to face any difficulty in marketing

as envisaged in the project report provided it maintains the quality and competitive price.
 CHAPTER II

PROJECT PARTICULAR & MEANS OF FINANCE

(A) PROJECT PARTICULAR:

A-1. Location of the Activity: - The Firm will be located at 10, Bagpat Road Meerut.The

location is best suited for the proposed activity. The promoter already possesses the

required infrastructure (space / sheds) to run the Manufacturing Unit safely.

The space will be adequate to take care of existing as well as future requirements of the proposed

firm upon expansion.

A-2. Technical Aspects Raw Material & Machinery: - The details & specifications along with

the cost of Raw Material and Machinery for the proposed project are given in detail in Financial

Aspect below.

The selection of the machinery has been made keeping in view the customer’s requirement, etc.

The promoters propose to place orders for items of Sports goods Manufacturing Industry to

suppliers who have supplied such materials to a number of units engaged in the

production of the same product directly and Indirectly.

A-3. Misc. Fixed Assets:- This includes Machinery furniture fixtures etc and will cost around
Rs.15 Lakhs.
 A-4. Working Capital:- The unit will be having a working capital requirement of

Rs. 96 Lakhs which includes Raw Material, Staff labor, Electricity Charges and other expenses etc

A-5. Gross Receipts Calculation: The promoter is expected to have Gross Receipts to the tune of

Rs. 457 Lakhs in the first year of operation and is expected to increase at the rate of 10% per

annum.

A-6. Manpower: - The firm upon commercial operation will generate employment potential

for 4 persons which is freely available.

A-7. Source of Finance: - To finance the proposed activity, the promoter’s shall be taking

finance, whereby the proprietor to contribute only 5% of the proposed project cost and the balance

i.e. 95% shall be arranged by the promoter through bank under the aforesaid scheme.
 CHAPTER III

TECHNICAL ASPECTS

i) Production detail & Process of Manufacture:

The process of manufacturing consists of various steps, as follows:

a) Mill base Preparation:

Solution of hydroxy ethyl cellulose (HEC) is made with the help of water and ammonia. All the
pigments and extenders are mixed with the small quantity of water and weighting agents with
the help of high speed stirrer having the rpm of 1500.

b) Grinding:
The prepared mill base is passed through the sand mill with the flow rate of 3 – 4 litrs per
minutes. For light colour mill based is passed once through the sand mill and for dark colour it is
passed through twice or thrice depending upon the hardness of pigment .

c) Make-Up:
The grinded material is mixed with the remaining water and emulsion at a low rpm with the high
speed stirrer. Thickener, coaleasing agents, defoamer, buffer solution are added under slow
speed to get the right consistency.

d) Tinting:
Various water based stainers are added to the prepared paint to get the required shade of paint.

e) Packing/Despatching:
After preparation and thorough checking of quality parameters the acrylic paint is packed to
different small containers. Now it is ready for dispatch at various places.

ii) Quality Control & Specification:

BIS: 15489 – 2004 Type – II for paints is used as quality standard. Under this wet opacity,
drying time, finish color, resist to alkali, wet scrubbality tests are performed to check the quality.

iii) Production Capacity (per annum)

a) Quantity : 6,500,000 Lts
b) Value : 4,47,50,000 Rs

iv) Motive Power Requirement: 35 HP

v) Pollution Control:
NOC from Pollution Control Board is necessary to be obtained before starting the industrial activity.
Suitable equipments are to be provided to check the harmful and non-permissible contents in the
effluent. Hence, effluent water may be treated suitably to remove harmful contents before discharging
the effluent.
 IN FAVOUR OF Mr. Mukul Mittal S/O Mr. Rajendra Prakaash R/O MEERUT
NATURE OF ACTIVITY: Paint and Similar Products Manufacturing

1 LAND AND BUILDING : - OWNED

Total (i) -

2 MACHINERY & Tools: -

a) Sand mill fitted with pump, cap. 5 litres shell size and flow rate of 4 – 5 liters per hour
with 5 HP motor & starter
b) Variable speed High Speed Disperser cap. 15 HP motor with starter.
c) Electronic weighing machine cap. 250 Kg
d) Brook field viscometer LCV model.
e) Weight per liter cup 100 ml cap.
f) DM Water Plant cap. 25 liters per hour
g) Water overhead tank of 10,000 liters capacity and tube well fitted with accessories
h) Electrification and installation charges
i) Pollution Control and Energy Conservation equipments
j) Wet scrubbality tester
k) etc 14,00,000.00

Total (ii) 14, 00.000.00

3 FURNITURE / FIXTURE
Working Equipments 1, 00,000.00

Total (iii) 1, 00,000.00

4 TOTAL CAPITAL EXPENDITURE :-

( I + II + III) Total Rs. 15, 00,000.00

5 RAW MATERIAL CHARGES PER MONTH :-

Preservative, Emulsifier, HEC, China Clay Thickener Defamer ,Infirm Preservative etc. 30, 78,000.00

Total (iv) 30, 78,000.00

6 STAFF AND LABOUR PER MONTH :-

1 Skilled Labour 4 No. Rs. 36,000.00

2 Unskilled Workers 2 Nos. Rs. 22,000.00

3 Helper 2 Nos. Rs. 17,000.00

Total (v) 61,000.00

7. Utilities Rs. 26,000.00
Total (vi) 26,000.00

8. Other Expenses Rs. 35,000.00

Total (vii) 35,000.00
9. Total Recurring Expenses
(iv + v + vi + vii) Rs. 32, 00,000.00
Total (viii) 32, 00,000.00
10. Total Working Capital for 3 months.
(Recurring expenses x 3) Rs. 96, 00,000.00
Total (ix) 96, 00,000.00

11. TOTAL INVESTMENT :-

1. Capital Expenditure Rs. 15, 00,000.00

2. Working Capital Rs. 96, 00,000.00

Total (viii) 1, 11, 00,000.00

12. MEANS OF FINANCE:-

1. Term Loan 95% Rs 1, 05, 50,000.00

2. Owner's Own Contribution 5% Rs. 5, 50,000.00

13. Financial Analysis:

(A) Cost of production (Recurring Expenses) (per annum)

S. No. Particulars Amount (Rs.)
1. Total Recurring Expenditure 3,84,00,000.00

2. Depreciations and Interest on Capital 10,00,000.00

Total :- 3,94,00,000.00

(B) Turnover (per annum)

Sales proceeds as Quantity (M.T.) Rate (Rs.) Value (Rs.)
shown below: Item
Paints and Products 2,50,000 Lt Rs. 85/Lt 2,12,50,000.00

Varnish 2,50,000 Lt Rs. 340/Lt 1,00,00,000.00

Similar Coating 1,50,000 Lt Rs. 90/Lt 1,35,00,000.00

Total:- 4,47,50,000.00

(C) Net Profit (Per Annum):

Turnover (-) Cost of Production
4, 47, 50,000.00 (-) 3, 94, 00,000.00 = 53, 50,000.00

(D) Net Profit Ratio (Per Annum):

Profit/Annum x 100 = 5350000 x 100 = 12%
Sales/Annum 44750000

(E) Rate of Return:

Profit/Annum x 100 = 5350000 x 100 = 48.20%
Capital Investment 11100000

Hence, the scheme is technically feasible and economically viable.