Plastic industry project report

8/13/2019 Plastic industry project report

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PRODUCT AND ITS USES

This project profile envisages the use of drinking Tea and Cool Drinks. The paper cup findsextensive use in railways, Hotels, household appliances, domestic applications. The product rangesfrom 150 ml to 300 ml, this manufacturing activity may well be set-up as small-scale units.

As there is a good production of instead of plastic cups, weight less as well as easy to carry

railway Tea vendors, no environment pollution, increase the demand of paper cups, user customerare to be encouraged in the modern days.

MARKET:

Because the paper cup industry is in a boom, the requirement of drinking items like Tea,coffee, Cool Drinks for railways, Hotels, household appliances, domestic applications as well as forreplacement of plastic cups, Glass items. There is a tremendous requirement of day-to-day life.

II. MARKET POTENTIAL

III. PRODUCTION TARGETS (Per Annum)

Quantity – 56,43,000 NosValue – Rs. 29,18,000

IV. BASIS & PRESUMPTIONS

1. Single shift of 8 hours a day, 25 days a month and 300 days in an year is presumed.Efficient machines and workers are also presumed.

2. Minimum 6 month period is considered for achieving full capacity utilization3. Labour rates are as per the prevailing rates.4. An average interest rate of 15% is considered.5. The estimates are drawn for a production capacity generally considered techno-

economically viable for model type of manufacturing activity.6. The information supplied is based on a standard type of manufacturing activity viable for

model type of manufacturing activity.7. The information supplied is based on a standard type of manufacturing activity utilising

conventional techniques of production at optimum level of performance.8. Costs in respect of machinery and equipment, raw materials and the selling prices of the

finished products etc. are generally prevailing at the time of preparation of the projectprofiles and may vary depending upon various factors.

9. Whereas some names of manufacturers, suppliers of machinery and equipment, rawmaterials etc. are indicated at the end of the profile, those are by no means exclusive orexhaustive.

V. IMPLEMENTATION SCHEDULE

Normally six months are required for the complete implementation of the project, includingmachinery erection, raw materials procurement etc.

VI. PRODUCTION DETAILS AND PROCESS OF MANUFACTURE

The process of manufacture consists of the following operations.



The process of manufacturing Poly coated paper purchased from market then cut in therequired sizes, fabricate outer shell then put in the bottom mould pressed and pasting and keep it in

the final paper cup mould. After making the cup checked random pieces for customer requirement.Then packing by plastic cover in 100 paper cups in a set.

VII. LAND & BUILDING

Land 250 sq.m. }} Rented Rs. 5,000 p.m.

Building 150 ” }

VIII. MACHINERY & EQIUPMENT

Sl.No. Description No. Rs.

1

Full Automatic Operation of

Paper cup Machine and other

assembly

1 8,50,000

2 Dyes and Moulds L.S. 50,000

3 Office equipments and furniture - 50,000

4Erection and electrification 10%

of the cost of machinery- 10,000

Total 9,60,000

Pre – operative expenses 10,000

Total 9,70,000



IX. STAFF AND LABOUR (Per Month)

Sl.No. Description Nos. Salary (Rs.)

1 Manager 1 5,0002 Production Supervisor 1 3,000

3 Accountant-cum-storekeeper 1 2,500

4 Watchman-cum-peon 1 1,500

5 Skilled Workers 2 5,000

6 Unskilled Workers 6 10,800

Total 27,800

Perquisites 15% 4,170

Total 31,970

Say 32,000

X. RAW MATERIALS (Per Month)

1

Special type of paper

(Poly coated paper) 2 Tones @

Rs.6, 000/-

1,20,000

2 Printing chemicals and Dyes L.S. 5,000

3 Packing Material L.S. 5,000

Total 1,30,000

XI. UTILITIES (Per Month)

1 Power 3000 units @ Rs.3.80/- 11,400

2 Water 300

Total 11,700

XII. OTHER EXPENSES (Per Month)

1 Postage and Stationer 500

2 Telephone 500

3 Consumable Stores 1,500

4 Repair and Maintenance 500

5 Transport Charges 1,000

6 Insurance 500

7 Misc. Expence 500

Total 5,000



XIII. WORKING CAPITAL FOR THREE MONTHS

1 Salary & Wages 32,100 x 3 96,000

2 Raw Materials 1,30,000 x 3 3,90,0003 Utilities 11,700 x 3 35,100

4 Other expenses 5,000 x 3 15,000

Total 1,78,700 5,36,100

XIV. TOTAL CAPITAL INVESTMENT

1 Fixed capital 9,60,000

2 Working Capital 5,36,100

Total 14,96,100

MACHINERY UTILIZATION

The whole operation of Tea cup and Cool Drink Cups making process is involvedsimultaneously. So the machine utilization has been taken 75% per day on single shift.

XV. COST OF PRODUCTION (Per Annum)

1 Total Recurring Expenditure 21,44,400

2

Depreciation on machinery @ 10%on

8,50,000 85,000

3Depreciation on Moulds/Dies @ 25% on

65,00012,500

4Depreciation on Office Equipment @ 20% on

50,00010,000

5 Interest on total capital @ 15% on14, 96, 100 2,24,400

Total 24,76,300

XVI. TOTAL SALES (Per Annum)

Annual production of paper cups 150 ml (Tea cup)300 ml (cool Drink cup) Saleable materials 59,40,000 Nos

After allowing 5% rejection 2,97,000 Nos56,43,000 Nos

XVII. PROFITABILITY (Per Annum)

Profit 27,00,000 – 24,64,350

= 2,35,650

Net Profit Ratio : Net profit x 100 / Turn over



= 2,35,650 x 100 / 27,00,000

= 8.92%

Rate of Return: Net profit x 100 / Total Investment

= 2,35,650 x 100 / 8,18,900

= 28.78%

XVII. FIXED COST

Depreciation of Machinery 28,500/-Interest on total investment 98,250/-Rent 48,000/-40% on salary and wages 1,78,100/-40% of Other expenditure 36,000/-

3,88,850/-

B.E.P. Fixed Cost x 100 / Fixed Cost + Profit

= 3,88,850 x 100 / 3,88,850+ 2,35,650

3,88,850 x 100 / 6,24,500

= 57.37%

XIX. NAMES AND ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

1. M/s. J.K.Enterprises,62/173, Thiruvalluvar salai,

Alwarpet, Chennai.

2. M/s. Jayveer Traders,171-D, Raj Building, Thoddarayan koil street,Kattoor, Coimbatore, Tamil nadu.

3. M/s. Rockford Business Links,K-120/6, Bougain villa,

Anna nagar East,Chennai.

XX. NAMES AND ADDRESSES OF RAW MATERIAL SUPPLIERS

1. M/s. Jagdish Fine Arts,4/687/A, Husain Colony,Sivakasi, Tamil Nadu.

2. M/s. Vidya Laminators Private Limited,112/236, Swaroop Nagar,Kanpur, Uttar Pradesh.

3. M/s. Lampack Paper Products, A-1, Industrial Estate,

Visakapatnam, Andrapradesh.



4. M/s. Kamakshi Lamipack private Limited,101, Sidco Aiema Tower,Ist Main Road, Industrial Estate,

Ambattur, Chennai.

Documents

Plastic industry project report