Chemical_PVC Self Adhesive Insulation Tape

8/17/2019 Chemical_PVC Self Adhesive Insulation Tape

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P VC SELF A DHESIVE INSULATION T APE

PRODUCT CODE : NA

QUALITY AND STANDARDS : IS: 7809 - 1986

PRODUCTION CAPACITY : 90,00,000 pcs. (per Annum)

Value : Rs. 5,40,00,000/-

MONTH AND YEAR : June, 2014

OF PREPARATION

PREPARED BY : Sh. Sandeep Agarwal

Assistant Director (Chemical)

1. INTRODUCTION

PVC self-adhesive insulation tapes are widely used for electrical insulation

and provide good insulation to industrial material. These PVC adhesive tapes can beextended both crosswise and longitudinally when applied and should be treated by

heat-shrinkage before. These tapes are based on many kinds of pressure sensitive

adhesives where in adhesive is applied on one side. They can be easily put on any

surface very conveniently by applying slight pressure either mechanically or

manually.

2. MARKET POTENTIAL

Adhesive tapes will continue to account for over two-thirds of aggregate

sales. Tapes will make further inroads at the expense of competitive carton sealing

media such as glues and mechanical fasteners. Rising corrugated box sales will also

bode favorably for Adhesive tape demand. Among the other tape types, the best

opportunities exist for technical and specialty tapes, such as the double-sided

adhesive tapes increasingly utilized in fastening and bonding applications in

industries such as building construction, motor vehicle assembly, electronics and

telecommunications, etc.

3. PRODUCTION TARGETES (PER ANNUM)Quantity : 90,00,000 pcs per annum

Value : Rs. 5,40,00,000/-


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4. BASIS AND PRESUMPTIONS

i. The unit proposes to work at least 300 days per annum on single shift basis.

ii. The unit can achieve its full capacity utilization during the 3 rd year of

operation.

iii. The wages for skilled workers is taken as per prevailing rates in this type of

industry.

iv. Interest rate for total capital investment is calculated @ 14% per annum.

v.

The entrepreneur is expected to raise 20-25% of the capital as margin money.

vi.

Costs of machinery and equipment are based on average prices enquired from

machinery manufacturers at the time of preparation of the project profile.

5. IMPLEMENTATION SCHEDULE

The approximate time required for various activities is given below.

However, it may vary from place to place depending upon the local circumstancesand enthusiasm of the entrepreneur:

S. No. Activity Period (in Months)

1. Scheme Preparation and Approval 0-1 Month

2.SSI Provisional Registration & Preparation ofProject Report

1-2 Months

3. Sanction of loan 2-5 Months

4. Clearance from State Pollution Control Board 3-4 Months

5. Placement of order for machinery and delivery 4-5 Months6. Installation of machines 6-7 Months

7. Power connection 6-7 Months

8. Trial Run 7-8 Months

9. Commercial Production 9 Months onwards

Due to overlapping of some activities, normally 6-9 months are required to

implement the project.

6. TECHNICAL ASPECTS6.1. Process Outline

Jumbo rolls are being used as the raw material. As per the customer’s

specification/ buyer requirement, rolls are being cut into desired size (width) with

the help of a slicer. With the help of shrink & packaging machine, prefoam cup is

used as packaging material for these tapes. Corrugated box with a set of 20 tapes.

6.2. Quality Control and Standards

As per IS: 7809, 1986 (Part III, Section I)


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6.3. Pollution Control

There is no major pollution problem associated with this industry except for

disposal of waste which should be managed appropriately. The entrepreneurs are

advised to take "No Objection Certificate" from the State Pollution Control Board.

6.4. Energy Conservation

Only necessary machinery and equipment and jig-jags should be purchased.

Proper space is given to proper flow for raw material and finished products. Control

is maintained over consumption of electricity light and fuel so that extravagance

expenditure can be checked.

7. FINANCIAL ASPECT

7.1. Fixed Capital

Land & Building (Rented):

Description Amount (Rs.)

Land & Building (Rented) 200 Sq. meters.12,000

Covered Area 100 Sq. meters.

7.1.1. Machinery and Equipments

S.No Particulars Nos. Rate (Rs.) Value (Rs.)

1 Slicer 03 80,000 2,40,000

2 Shrink & Packaging Machine 01 1,25,000 1,25,000

3 Lab Equipments LS - 40,000

Total 4,05,000

Installation/Electrification @10% 40,500

Total 4,45,500

4 Furniture LS - 50,000

5 Preoperative Expenses 5,000

Total 5,00,500

7.2. Working Capital (per month)

7.2.1. Personnel

S. No. Designation Nos. Salary Amount (Rs.)

1. Manager 01 Self -

2. Salesman 01 7,000 7,000

2. Skilled Workers 03 9,000 27,000

3. Unskilled Workers 02 8,000 16,000

Total 50,000

Perquisites @ 15% of total Salaries 7,500Total 57,500


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7.2.2. Raw Material & Packing Material

S.No. Particular Qty.(pc)Rate

(Rs.)/rollValue (Rs.)

1 Jumbo Rolls(1250 mm X 8 mtr)

11,250 320 36,00,000

2 Printing & Packaging materials @ Rs0.40/- per pc (7,50,000 pc/month)

0.40/- - 3,00,000

Total 39,00,000

7.2.3. Utilities

S.No. Particulars Amount (Rs.)

1 Electricity charges, 25 units per day for 25 days @ Rs.7/- 5,250

2 Water charges 1,000

Total 6,250

7.2.4. Other Contingent Expenses

S. No. Particulars Amount (Rs.)

1 Rent 12,000

2 Printing & Stationery 1,500

3 Telephone & Internet 2,000

4 Postage 1,000

5 Consumable Stores 2,000

6 Repair & maintenance 2,000

7 Transportation Charges @ Rs 0.10 per pc 75,000

8 Advertisement 3,000

9 Miscellaneous 2,000

Total 1,00,500

Total Recurring Expenditure (per month) Rs. 40,64,250/-

7.3. Total Capital Investment

Total Fixed Capital Rs. 5,00,500

Total Working Capital (for 2 months) Rs. 81,28,500

Total Rs. 86,29,000/-

8. FINANCIAL ANALYSIS

8.1. Cost of Production (per annum)

S.No. Particulars Amount (Rs.)

1. Total Recurring Cost 4,87,71,000

2. Depreciation on plant & machinery @ 10% 44,550

3. Depreciation on furniture @ 20% 10,0004. Interest on total capital @ 14% 12,08,060

Total 5,00,33,610/-


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8.2. Turnover (per annum)

90,00,000 pcs of tape @ Rs. 6 Rs. 5,40,00,000/-

8.3. Net Profit (per annum)

= Turnover – cost of production

= Rs. 5,40,00,000 – 5,00,33,610= Rs. 39,66,390/-

8.4. Net Profit Ratio

=Net profit per year

X 100Turnover per year

=39,66,390

X 1005,40,00,000

= 7.35 %

8.5. Rate of Return

=Net profit per year

X 100Total Capital Investment

=39,66,390

X 10086,29,000

= 45.97 %

8.6. Break-even Point

S. No. Fixed Cost (Per Annum) Amount (Rs.)

1 Total Depreciation 54,550

2 40% of salary & wages 2,76,000

3 40% of other expenses 64,800

4 Rent 1,44,000

5 Interest on total investment 12,08,060Total 17,47,410

B.E.P

=Fixed Cost

X 100Fixed Cost + Net Profit

=17,47,410

X 10017,47,410 + 39,66,390

= 30.58 %


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NAME & ADDRESSES OF MACHINERY SUPPLIERS

S. No. Name of the Supplier Address of the Supplier

1 M/s. Leo Sales Corporation E-17, Ground Floor, Lajpat Nagar-I,New Delhi-10024

2 M/s. Euro Technologies D-6, Ground Floor, Rana PratapBagh, Delhi-110007

3 M/s. Print Packs 411, Functional Industrial Estate,Patparganj, Delhi-110092

4 M/s. Rishabh Enterprises D-1, Sector-3, DSIIDC, Bawana,Delhi-110039

5 Britomatics India Private Limited 312L, Udyog Kendra Extn-2,Greater Noida-201306 (UP)

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Chemical_PVC Self Adhesive Insulation Tape