**********************************************

PROJECT REPORT

OF

Manufacturing of Arecanut Plates Unit

Prepared by

M N Chandrakala w/o Anand

#131-L
Lingayatara Beedi
Mukkadahalli village
Chamarajanagar-571128
Mobile: 8152873812

PROMOTER : SRI . M N CHANDRAKALA

*****************************************
 -2-

MAJOR PARTICULARS REGARDING APPLICANT UNIT

1. NAME OF THE UNIT : M/S. CHANDRAKALA

ARECANUT LEAF PROCESSING UNIT
2. NAME OF THE PROMOTER : M. N CHANDRAKALA
3. FATHER NAME : MD NAGARAJU
4. QUALIFICATION : BELOW METRICULATION
5. CATEGORY/CASTE : OBC
6. NABK NAME & ADDRESS : CANARA BANK
FOR FINANCIAL ASSISTANCE CHAMARAJANAGAR BRANCH
7. EXPERIENCES IN THE FIELD : 2 YEARS
8. LOCATION OF THE UNIT : M/s. CHANDRAKALA
ARECANUT LEAF PROCESSING UNIT

MUKKADAHALLI VILLAGE AND POST

CHAMARAJANAGAR TALUK & DISTRICT

9. COMMUNICATION ADDRESS : MN CHANDRAKALA C/O ANAND

MUKKADAHALLI VILLAGE AND POST

CHAMARAJANAGAR TALUK & DISTRICT

10. PROPOSED CONSTITUTION : PROPERIETORY CONCERN

11.NATURE OF INDUSTRY : ARECANUT LEAF PROCESSING UNIT
12.ESTIMATED COST OF THE PROJECT : Rs.12.00 Lakh

Rs. In Laksh

13. MEANS OF FINANCE : A. Capital contribution 0.50

B. Loans availed 9.50

----------------

PROJECT COST 10.00

14.MARGIN MONEY AMOUNT : Rs.0.50 Lakhs

 -3-

15.INSTALLED CAPACITY : 30 LAKHS

16.UTILISATION OF CAPACITY : 60%, 65%, 80%, 90%

17.POWER CAPACITY : NORMAL

18.NO OF WORKING DAYS : 300 DAYS

19.WORKING HOURS IN A DAY : 8 HOURS

20.RAW MATERIALS REQUIRED : Raw Areca nut Leafs etc.

21.IMPLMENTATION PERIOD : 6 Months

22.RETURN ON INVESTMENT : 53.00 %

23.DEBT SERVICE COVERAGE RATIO : 1.95%

24.PAY BACK PERIOD : 5 Years

 INTRODUCATION :

Project Report for Areca Leaf Plate Making unit

Areca leaf plates are perfect alternate to Plastics/Polymer

based products and also Paper based products about which the
entire world is concerned about. A 100% natural mechanism is
followed for manufacturing these plates. The fallen areca leaf is
collected from farms. The Sheath of the areca leaf cleaned and
soaked in water for approximately 15 minutes and shade dried for
30 minutes. They are then compressed to different shapes using
the correspondingly shaped Machines. They are then packed as
per the customer requirement.

Advantages of Areca Plates:

1. Eco-friendly, Bio-degradable and Compostable.

2. No chop down of trees, fallen leaves are collected and
turned to value added products. Waste to wealth
concept.
3. No Chemicals, bleaching, PE (Poly Ethylene) coating, Wax
coating at any stage.
4. Light weight, sturdy and non-crushable.
5. Microwave & Refrigerator safe.
6. Holds liquid items for 4 hours without leakage.
7. Good for hot, wet and cool food items.
CONSTITUTION :

The unit has been constituted as a Proprietary concern.

PROMOTER :

Smt MN Chandrakala w/o Anand, Aged about 50 Years residing at

Mukkadahalli Village and Post, Chamarajanagar Taluk & District, He is having 2
Yeas experience in the similar Fild. Because of his past experience she can make
the unit viable.

LOCATION:

The unit is located in Mukkadahalli Village, Chamarajanagar Taluk &

District, it is ideal place for the unit as it is well developed area, and there is no
problem for raw materials & Labours etc,

BUILDING:

The promoter owend shed measuring with platform, store and other
required facilities at Mukkadahalli Village, Chamarajanagar Taluk & District, and
partilally having rented place.

MACHINERY & EQUITPMENTS:

The required plant & machineries are cutting and other tools & required
equipments, which cost comes to Rs.8.03 Lakhs as per quotation.

Employment Opportunity

Each Areca leaf plate manufacturing unit provides direct

employment to 3 persons and there is an indirect impact of
creating employment for 2 other persons.

Rural area is selected to create employment. Also work shed &

labor will be at low cost.
Areca Leaf Procurement

In India 4 Lac Hectares of Areca Crop has been cultivated,

near about 5400 Million Areca Leaves are shredded and Treated
as Agro waste. These leaves can be converted as a Value added
Product.

One Areca leaf plate manufacturing unit Needs 195000

leaves per year. In this scenario near about 27700 plates
manufacturing units can be established all over India. 1.5 lakh
fresh employments can be given in 27700
units. This Particular project can create “A Rural Employment
Revolution” in India.

At present only 1500 units are established all over India. In

that around 1000 units are in south India. The major suppliers of
raw materials for south Indian units are Tamilnadu (Salem,
Coimbatore), Kerala and Karnataka (Thumkur, Shimoga).

Major markets For Areca Leaf Plates

1. First quality plates will be targeted for International market

2. Second quality plates will be targeted to local markets
like dealers, super market, restaurants and caterer.

Areca Plates can be used in any occasion like parties,

buffets, picnics, outdoor catering, functions, food-joint, temples.
This product is having a good market in Maharashtra, Delhi,
Madhya Pradesh and Tamilnadu.

These plates act as the best alternative for plastics and

because of this reason it has a good market in international
market.

Waste Disposal:

1. Food plates thrown after eating will be naturally

degraded within 60 days of time like any plant matter.

2. Manufacturing waste of Areca sheaths will be used for

vermin compost, dry fodder for animals, bio-fuel bricks.
 The fresh Areca nut LEAF is dehisced and in most cases, cut into required
pieces. It id then boiled in water in water mixed the required coloring pigments
for about 20 to 30 minutes. The water is boiled to from a concentrate. The boiled
Areca is mixed with the concentrate thoroughly and is dried in the conventional
dries (open drying with the nuts being spread on a mat and wood burnt from
beneath). Care is taken for the uniform drying of the nuts spread over it. The
drying operation is completed after 4 to 5 hours of continuous drying. Processing
of Aria nut work is simple technical work, the experience people are easily doing
this job.

MARKETING:

The promoter is having sufficient knowledge in the similar field and capable of
procuring order for areca nut. Since it’s located in very good place, and near by
there is no similar unit, hence there is no problem for marketing.

RAW-MATIRIALS:

The basic raw material for this unit is Areca nuts leaves are available in
Chamarajanagar District. Hence there is no problem in procuring the required raw
material continuously.

WORKING CAPITAL:

The working capital requirement has been worked out for required period of 1
Month and the same is Rs.2.00 Lakhs the necessary schedules have been provided
in the subsequent pages of the project report.

MEANS OF FINANCE:

An Total amount of Project cost Rs.10 Lakhs and proposed Bank loan to be
availed Rs. 9.5 laksh, being Term Loan & W. capital Loan of the project cost &
Rs.0.50 Lakhs will be brought by the promoter to the project cost. And the eligible
Margin Money is availed from KVIC for OBC Enterpriser. And the total cost of the
project is Rs.10.00 Lakhs and the detailed means of finance is given in the
separate Annexure.
DEPRECIATION :

Depreciation has been calculated on Plant & tool at 15% P.A on straight-line basis
while computing the profitability & cash Glow. However depreciation is calculated
for Income tax purpose separately.

REPAYMENT :

Repayment Schedule with interest has been worked for Term loan & W.C. Loan
on quarterly basis for all 5 years which includes 6 months moratorium.

IMPLEMENTTION SCHEDULE

Sl.No. ACTIVITY JUN JUL AUS SEP OCT NOV

01.Project Report XXX

02.Application to

Bank/Arrangement of

Finance XXX

03.Construction of

Building N.A

04.Ordering Plant & Equipments

Procurement, Installation XXX

05.Arrangement of Power XXX

06.Recruitment of man power - XXX
07.Trial production XXX
08.Commercial Production XXX
 MAN POWER REQUIREMENT

Sl. Description Qty Wages/ Total

No. Salaries RS.IN
P.M.(RS) Lakhs

A. LABOURES :-
a. Skilled workers 1 8.00
b. Semi skilled 1 7.00
c. Others 2 10 .00

______ ______

TOTAL 4 25.00
______ ______
b. Supervisor 1 10.00
INTIAL CAPITAL OUTLAY AND PATTERN OF FINANCE COST OF THE PROJECT

Rs.in Lkhs
___________________________________________________________________

SL PARTICULARS TOTAL PROJECT COST

___________________________________________________________________

A. LAND & BUILDING :-

Building advance 0.50

Packing materials 0.97

B. PLANT & MACHINERY & EQUIPMENTS :

a. Tools & required equipments as per quotation. 8.03

C. WORKING CAPITAL :

Purchase of Raw materials which estimate for 1 month.

Areca nut Leafs etc and Preliminary Expenses. 0.50

_______________________________________________________________

TOTAL PROJECT COST 10.00

___________________________________________________________
PRODUCTION & SALES REALISATION

Out of the working capital available the unit shall purchase Areca Leaves
with the other required raw materials and the same shall be used for the
processed. And the same shall be as per the requirement of the dealers &
customers. The estimated production in the 1st year is shown as per the raw
materials used of Rs.15.00 Lakhs & the estimated selling rate by adding the profit
of 20% to 25% on the cost of Investment.

MEANS OF FINANCE :

The total cost of project is Rs.10.00 Lakhs Out of total cost of project the
promoter requires Term loan and working capital loan of Rs. 9.50 Lakhs is availed
from Bank, which is 85% of the project cost. And the eligible Margin Money aviled
from KVIC is Rs.0.50 Lakhs which is 35% of the project cost and the detailed
means of finance is given below :

_______________________________________________________________
SL PARTICULARS Own Amount Total Project
Funds to be raised Cost
_______________________________________________________________
A. Capital Contribution by the 0.50 0.50
Promoter
B. Term Loan from Bank 0.00
C. W.C. Loan from Bank 0.00 9.50

________________________________
Total 0.50 10.00
________________________________
 -10-

PROJECTION OF PERFORMANCE PROFITABITY AND REYPAYMENT

Rs. In Lakhs
____________________________________________________________
Sl. OPERATING YEARS IYr IIYr III Yr IV Yr V Yr
No.

A. Utilisation of Installed capacity(%) 60% 65% 70% 75% 80%

B. Production during the year

1. MFG of Areca nut Plates 14.79 15.85 17.04 18.42 19.66
(As per the material & Labour)

2. Selling Rate _____________________________

(asper Annexure)
______________________________

SALES RECEIPTS :

Sale including miscellaneous Receipt 18.75 20.32 21.19 23.49 25.07

Total Receipts __________________________________

18.75 20.32 21.19 23.49 25.07

___________________________________

C. LESS : EXPENDITURES :
1. Raw Material Cost 13.11 13.93 14.93 16.10 17.10
2. Labour & wages 1.68 1.92 2.11 2.32 2.56
3. Electricity charges 0.46 0.52 0.58 0.64 0.72
4. Consumable stores 0.15 0.16 0.17 0.18 0.19
5. Repairs & Maintenance 0.24 0.42 0.43 0.44 0.45
6. Freight charges 0.40 0.42 0.43 0.44 0.45
7. Supervisor & Conveyance 0.36 0.40 0.46 0.52 0.58
8. Traveling & Conveyance 0.15 0.16 0.17 0.18 0.19
9. Other Administrative Expenses 0.18 0.20 0.22 0.24 0.26
10. Depreciation 1.20 1.02 0.40 0.40 0.40
11.Rates, Taxs, Insurance 0.15 0.16 0.17 0.18 0.19
_______________________________
TOATL EXPRNDITURE 17.28 18.52 19.90 21.47 22.95
_______________________________