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NSIC Project Profiles

1. INTRODUCTION

2. MARKET

3. MANUFACTURING PROCESS

4.

210000 bundles

Rs. 2 bundle

5. PROJECT COST/CAPITAL INVESTMENT

S.No Description Amount Rs.

1 Preliminary & Preoperative Expns 10000

2 Fixed Capital 35000

3 Working Capital for 1 month(s) 31550

Total Project Cost 76550

Capacity

Selling Price

PRODUCTION CAPACITY PER ANNUM

The process of manufacturing involves four important steps. In the first step a

mixture of containing tobacco, lime and catechu is repared. In the second stage the

bidi is rolled with bidi leaves embedding this mixture in the middle and a small

thread is tied at the one end. In thie third stage the rolled bidis are arranged in order

in M.S. trays and baked on a wood husk/fired oven. In the fourth stage baked bidis

are removed from the oven and a small piece of wrapper embossed with the trade

mark is pasted at one end and packed.

BEEDI MANUFACTURING

Beedi is the cheapest pleasure for rural smokers. Beedis are rolled from a forest leaf

known as "DIOS-PYRUS ME LOMOXYLAN" which is abundantly available in

tropical/sub-tropical climatic forests scattered in Andhra Pradesh, Kerala, Karnataka,

Orissa, Tamilnadu, Madhya Pradesh etc. Owing to its cheaper cost, this product is

widely used by the rural population and certain percetage of low income group among

urban population who have relatively poor purchasing power.

Being the cheapest pleasure available for the low income group people in rural and

urban areas, this product is well familiar and having wide scope in the country.

Presently a number of well established as well as non-established companiesmanufacturing with brand names such as "Karim Bidi", "Ganesh Bidi", "Four Horses"

etc. are available. Considering the increase in population, the demand for bidi is

also increasing, hence the scope for such type of units are more in all parts of the

country. This is a labour intensive industry.

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NSIC Project Profiles

6. MEANS OF FINANCE

S.No Description %age Amount Rs.

1 Promoter Contribution 15% 11482.5

2 Subsidy 20% 15310

3 Term Loan 65% 49758

Total 76550

7. FINANCIAL ASPECTS

A . F I X E D C A P I T A L

i. Land and Buildings Rented 1000 per month

ii. Machinery and Equipment

S.No Description Qty. Rate Amount Rs.

1 Pulveriser 6" with 2 HP Motor 1 7500 7500

2 Husk fired Baking Kiln 1 5000 50003 M.S. Trays 25 Nos. @Rs.200 25 200 5000

4 Misc. Tools && Euipments 1 5000 5000

5 Installation Charges 1 2500 2500

6 Office Furniture & Equipment 1 10000 10000

7 0 0 0

0

0

Total 35000

B . W O R K I N G C A P I T A L

i. Salaries & Wages (per month)

S.No Description Nos. Sal/mon. Amount Rs.

1 Supervisor/Entrepreneur 1 3000 3000

2 Skilled Workers 2 2500 5000

3 Unskilled Workers 3 2000 6000

4 0 0

5 0 0 0

Total 14000

ii. Raw Material (per month)

S.No Description Unit Qty. Rate Amount Rs.

1 Bidi Leaves 5 Mts Mtrs 5 850 4250

2 Tobacco shreddings 0.5 Mtrs Mts 0.5 12000 6000

3 Catechu 0.2 MTS Mts 0.2 18000 3600

4 Lime Mts 1 250 250

5 Threads 1 100 100

6 Packing Materials 1 250 250

7 0 0 0

Total 14450

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NSIC Project Profiles

iii. Utilities (per month)

S.No Description Unit Amount Rs.

1 Power LS 1000

2 Water LS 100

Total 1100

iv. Other Expenses (per month)

S.No Description Amount Rs.

1 Postage & Stationery Expenses 0

2 Transportation Expenses 1000

3 Advertisement Expenses 0

4 Consumable Stores 0

5 Miscellaneous Expenses 0

Total 1000

v. Total Working Capital (per month)S.No Description Amount Rs.

1 Rent 1000

2 Salaries and Wages 14000

3 Raw Material 14450

4 Utilities 1100

5 Other Expenses 1000

Total 31550

8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs.1 Total Working Capital 378600

2 Depreciation @ 15% 5250

3 Interest @ 12% 5971

Total 389821

9. TURNOVER (PER YEAR)

S.No Description Unit Qty. Rate Rs. Amount Rs.

1 Beedis bundles 210000 2 420000

Total 420000

10. FIXED COST (PER YEAR)

S.No Description Amount Rs.

1 Depreciation 5250

2 Interest 5971

3 Rent 12000

4 Salaries & Wages @ 40% 67200

5 Other Expenses incl. Utilities @ 40% 10080

Total 100501

11. PROFIT ANALYSIS & RATIOS

1 Net Profit Rs. 30179

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NSIC Project Profiles

2 Percentage of Profit on Sales 7%

3 Return on Investment 39%

4 Break Even Analysis 77%