STONE PROCESSORS

STONE PROCESSORS

A Business Plansubmitted in partial fulfillment of

the requirements for theDegree of Bachelor of Technology

Under Biju Pattnaik University of Technology

By

Vikas Kumar Sabata Roll # ECE200425380

Sagar Singh Roll # IT200410162

Biswa Ranjan Mahapatra Roll # IT200410442

Sanjit Tripathy Roll # IT200425228

March - 2008

Under the guidance of

Mr. Jagannath Mohanty

NATIONAL INSTITUTE OF SCIENCE &TECHNOLOGY

PALUR HILLS, BERHAMPUR, ORISSA – 761008, INDIA

ABSTRACT

The project under consideration is an essential ingredient manufacturing unit in

construction segment. In fact locally there is immense requirement of granite stone

chips, metals, boulders from different quarters like private construction works,

contractors on jobs and public sector agencies like Railways & other projects. With

the rise in population and standard of living there is significant increase in

constructional activities which has created tremendous demand for crushed stone. The

demand of said crushed stone will continue to grow day by day.

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ACKNOWLEDGEMENT

We express our deep sense of gratitude to, Mr. Jagannath Mohanty, Project

Advisor, for his valuable guidance and constant unfailing encouragement for

completing this project.

We are also grateful to our friends for tirelessly and patiently pursuing us to finish this

report without whose help completion of the project report was the next thing to

impossible.

Last, but not the least, We give our sincere thanks to Dr. B. Pawan Kumar, for

giving us the opportunity and creating a nice work environment for us to complete our

Business Plan report within the stipulated period of time.

Finally, I would like to thank Mr. Sangram Mudali for providing us proper

environment for the completion of the report.

Vikas Kumar Sabata

Sagar Singh

Biswa Ranjan Mahapatra

Sanjit Tripathy

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TABLE OF CONTENTS

ABSTRACT....................................................................................................................i

ACKNOWLEDGEMENT.............................................................................................ii

TABLE OF CONTENTS..............................................................................................iii

1. INTRODUCTION......................................................................................................1

2. GENERAL INFORMATION....................................................................................2

2.1 NAME OF THE ENTERPRENUR.....................................................................22.2 PROPOSED PROJECT.......................................................................................22.3 MAJOR PRODUCTS/SERVICES......................................................................22.4 PROPOSED LOCATION....................................................................................22.5 TYPE OF ORGANISATION..............................................................................2

3. ENTREPRENUER PROFILE...................................................................................3

4. TYPE OF THE PRODUCT / SERVICES.................................................................4

5. MARKET POTENTIAL............................................................................................5

5.1 PRESENT DEMAND AND SUPPLY OF THE PRODUCT..............................55.2 COMPETITION...................................................................................................55.3 TARGET CLIENTS/SELECTED MARKET AREAS.......................................55.4 MARKET STRATEGY.......................................................................................5

6. MANUFACTURING PROCESS..............................................................................6

6.1 TECHNICAL KNOWHOW AVALABILITY....................................................66.2 STEP BY STEP DISCRIPTION OF THE MANUFACTURING.......................66.3 PRODUCTION SCHEDULE..............................................................................6

7. DETAILS OF THE PROPOSED PROJECT.............................................................7

8. WORKING CAPITAL (one month)/One Cycle......................................................13

9. TOTAL COST OF THE PROJECT.........................................................................14

10. MEANS OF FINANCE.........................................................................................15

11. PROFITABILITY PROJECTIONS.......................................................................16

12. BREAK EVEN POINT..........................................................................................17

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iii

ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

1. INTRODUCTION

The project under consideration is an essential ingredient manufacturing unit in

construction segment. In fact locally there is immense requirement of granite stone

chips, metals, boulders from different quarters like private construction works,

contractors on jobs and public sector agencies like Railways & other projects. With

the rise in population and standard of living there is significant increase in

constructional activities which has created tremendous demand for crushed stone. The

demand of said crushed stone will continue to grow day by day.

The unit will market its products to various contractors engaged in National highway

expansion and Gopalpur Port. Further the unit can cater to the demand of Railways by

supplying to their existing stockyard at Surla Road. Besides, There is good demand of

stone chips in private construction works, construction of roads & mfg. of Hume

Pipes & PSC Poles in and around Ganjam Dist. . The unit can cater to the needs of

Gajapati & Kandhmal Dist.. The proposed mega energy project at Pati Sunapur , SEZ

by TATA group near Gopalpur will be a major market source for the unit in future.

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2. GENERAL INFORMATION

2.1 NAME OF THE ENTERPRENUR

Mr. Vikas Kumar Sabata

Mr. Sagar Singh

Mr. Biswa Ranjan Mahapatra

Mr. Sanjit Tripathy

2.2 PROPOSED PROJECT

Stone Processors.

2.3 MAJOR PRODUCTS/SERVICES

Stone chips, metals, boulders.

2.4 PROPOSED LOCATION

Arendra under Chikiti tehsil, block Chikiti, Pitatali

2.5 TYPE OF ORGANISATION

Private Limited Company

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3. ENTREPRENUER PROFILE

1. Name : Vikas Kumar Sabata

Educational Qualification: Bachelor of Technology

Technical Skills: C,C++,VLSI

2. Name : Sagar Singh


Technical Skills: C,C++,Core Java.

3. Name: Biswa Ranjan Mahapatra



4. Name: Sanjit Tripathy



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4. TYPE OF THE PRODUCT / SERVICES

1. Type of the Project :

Small Scale Industry.

2. Product / Services Description :

Stone chips, metals, boulders for

private construction works, contractors

on jobs and public sectors agencies like

railways, national highway authority of

India (NHAI).

3. Major Consumers :

Contractors of private constructions and

public sectors agencies like Railways,

National Highway authority of India

(NHAI).

PROMOTERS:

1. Major Promoter of our project will be loans taken from banks.

2. Capital from reliable and Supportive Capital Ventures.

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5. MARKET POTENTIAL

5.1 PRESENT DEMAND AND SUPPLY OF THE PRODUCT

The unit will market its products to various contractors engaged in National Highway

expansion and Gopalpur port. Further it can cater to the demands of Railways by

supplying to the existing stockyard at Surla road. Beside there is good demand of

stone chips in private construction works, construction of roads and manufacturing of

Hume pipes and PSE poles in and around Berhampur town. The proposed mega

Energy Project at Pati Sunapur will be a major market source for the unit in future.

5.2 COMPETITION

Since requirements for crushed stones has been increasing due to various construction

works, the unit will not come across stiff market competition.

5.3 TARGET CLIENTS/SELECTED MARKET AREAS

Railways, NHAI (National Highway authority of India) , Private contractors.

5.4 MARKET STRATEGY

At present good demand of the product.

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6. MANUFACTURING PROCESS

6.1 TECHNICAL KNOWHOW AVALABILITY

Retired civil engineer from PWD Mr A.Behera.

6.2 STEP BY STEP DISCRIPTION OF THE MANUFACTURING

Name of the Job Stone Processor.

Raw Material Granite bolder of size: 9” to 10”.

Crushing of raw material in jaw crusher.

After crushing stone chips & metal came out with the help of conveyor belt.

Storage of stone chips & metal separately.

Ready for inspection

Dispatch as per requirement of the party

6.3 PRODUCTION SCHEDULE

NO. OF WORKING DAYS PER ANNUM - 300 days

NO. OF WORKING HOURS PER DAY –8 AM to 4 PM (8 hours single shift)

INSTALLED CAPACITY(ANNUAL) - 96000 MT

UTILIZED CAPACITY (%)

1ST YEAR:50 %

2ND YEAR: 60 %

3RD YEAR: 70%

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7. DETAILS OF THE PROPOSED PROJECT

A. LAND AND BUILDING

Sr.No. Particular Area Required Total Value

1. Land Ac.3.565 Rs.10,00,000/-

2. Land development Rs.5,00,000/-

3. Motor room 150 sq.feet@Rs 250/-per sq. feet

Rs 37,500/-

4. Ramp 20’ ht Rs 2,00,000/-

5. Office Room 288 sq.feet @ Rs 200/- per sq.ft

Rs 57,600/-

6. Stone Room 1694 sq.ft @ Rs 150/- sq.ft

Rs 2,54,100/-

7. Workshop 1484 sq.ft@ Rs 150/-sq.ft

Rs 2,22,600/-

8. Labour shade-1 1600sq.ft @ Rs 150/-sq.ft

Rs2,40,000/-

9. Labour shade-2 650sq.ft @ Rs 150/-sq.ft.

Rs 97,500/-

10. Bore well Rs 50,000/-

Total Rs 26,59,300/-

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B. MACHINERS/EQUIPMENTS:

Sr.No. Description Nos. RequiredRate Total

Value

1 Mechtech make Double Toggle , Oil lubricated jaw Crusher: 22”x 9”

1 Rs. 5,82,400/- Rs.5,82,400/-

2 Mechtech make Double Toggle , Oil lubricated jaw Crusher: 20”x12”

1 Rs 5,94,048/- Rs 5,94,048/-

3 Vibrating Screen for separation of different grade of crushed materials

1 Rs 3,25,000/- Rs 3,25,000/-

4 Conveyer system:@Rs.750000/-

6 Rs 4,50,000/- Rs4,50,000/-

5 250 KVA,11/4kv Transformer, Sub-station with poles, structures,15 nos. of PSC poles, conductors

Rs 4,90,000/- Rs4,90,000/-

6 Electric Motors(30HP-for Crushers)(10HP-for Vibrating Screen)(5HP-for Elevators)

9 Rs 4,25,000/- Rs 4,25,000/-

Total: Rs 28,66,048/-

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C. MISC. FIXED ASSETS:

Sr.No. ParticularsNos.

RequiredRate(Rs.)

Total Value

1 Electrical equipment 1 15,000/- 15,000/-

2 Tool 1 6,000/- 6,000/-

3 Testing equipment 1 3,000/- 3,000/-

4 Office equipment, furniture

1 5,000/- 5,000/-

5 Misc. 1 1,000/- 1,000/-

Total: 30,000/-

D. PRELIMANARY AND PRE-OPERATIVE EXPENSES

Sr.No. Particulars Amount(Rs.)

1. Interest during implementation 43,020/-

2. Establishment expenses 20,000/-

3. Start-up expenses 15,000/-

4. Stamp and duties (court) 20,000/-

6. Licensing expense 20,980/-

Total 1,19,000/-

E. SALES REVENUE:

Year Item(s) Quantity Sold/Year

Rate per unit(Rs.)

Sales Realization(Rs.)

Stone chips 18,800MT 250/- 42,00,000/-Metals 250/- 30,00,000/-

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10,000MTTotal: 72,00,000/-

F. RAW MATERIAL (MONTHLY REQUIREMENT)

Sr.No. Item(s) Quantity Rate(Rs.)Total

Value(Rs.)1 Granite bolder

of size: 9” to

10”

4000MT 75/MT 3,00,000/-

Total 3,00,000/-

G. UTILITIES – MONTHLY

Sr.No. Particulars Annual Expenditure Remarks

1. Power/Electricity 4,00,000/- Rs. 4.20

per unit

4. Any other item 3,000/-

Total 4,03,000/-

H. MAN POWER(Salaries/Wages)- Monthly

1 Manager 1 Rs 4,000/- Rs 4,000/-

2 Machine

man/Fitter

1 Rs 3,000/- Rs 3,000/-

3 Clerk-cum-

Accountant

1 Rs 3,000/- Rs 3,000/-

4 Watchman 1 Rs 2,000/- Rs 2,000/-

5 Unskilled worker 10 Rs 2,000/- Rs

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20,000/-

Total Rs

32,000/-

Annual – 12 x 32000 = RS 3, 84,000/-

I. REPAIRS AND MAINTENANCE- Monthly


1 Lubricant 3,000/-

2 Bearing, jaw 6,000/-

3 Mechanical repair 1,500/-

4 Others 1000/-

Total 11,500/-

Annual – 12 x 11,500= Rs. 1,38,000/-

J. SELLING AND DISTRIBUTION EXPENSES- Monthly

Sr.No. Particulars Amount(Rs.) Remarks

1. Publicity Expenses 5,000/-

2. Traveling 3,000/-

3. Freight 40,000/-

4. Commission 20,000/-

5. Misc. 2,000/-

Total: 70,000/-

Annual – 12 x 70,000 = Rs. 8, 40,000/-

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K. ADMINISTRATIVE EXPENSES- Monthly

Sr.No. Particulars Amount(Rs.) Remarks

1. Stationary 1,500/-

2. Post/Telephone/Fax 4,000/-

3. Guest Entertainment Expenses 10,000/-

4. Misc. 4,500/-

Total: 20,000/-

Annual – 12 x 20,000 = Rs. 2, 40,000/-

L. INTEREST- Annual

Loan Amount(Rs.)

Interest(Rs.) Installment(Rs.) Balance(Rs.)

43,93,800/- 5,27,256/- 10,30,796/- 33,63,004/-

Total 33,63,004/-

M. DEPRECIATION

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Sr. No.

Type of Asset Cost of Asset

Depreciation(WDV)

Amount

1. Buildings 26,59,300 5% 1,32,965/-

2. Plant & Machinery 19,51,048 10% 91,500/-

3. Moulds & Equipments 9,15,000 15% 1,37,250/-

Total: 3,61,715/-

8. WORKING CAPITAL (one month)/One Cycle

Annual – 4, 33,500 x 12 = 52, 02,000/-

Sr.No. Item Rs.

1. Raw-Material 3,00,000/-

2. Salary/Labour 32,000/-

3. Administrative expenses 20,000/-

4. Repairs and Maintenance exp. 11,500/-

5. Selling and distribution expenses 70,000/-

Total 4,33,500/-

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9. TOTAL COST OF THE PROJECT

Sr.No Particulars Total Value(Rs.)

1. Fixed Capital 55,55,348/-

2. Working Capital(One Cycle) 4,33,500/-

3. Preliminary and pre-operative exp. 1,19,000/-

4. Cost escalation & Contingencies Nil

Total: 61,07,848/-

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10. MEANS OF FINANCE

Sr.No. Particulars Percentage of Loan Amount(Rs.)

1. Own Investment 40% 29,29,000/-

2. Term Loan 60% 43,93,800/-

Total: 73,23,000/-

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11. PROFITABILITY PROJECTIONS


1. Annual Sale Realization 72,00,000/-

2. Cost of Manufacturing/Servicing 61,05,000/-

A Annual Working Capital 52,02,000/-

B Annual Interest on Loan 5,27,256/-

C Annual Depreciation 3,61,715/-

Total: 60,90,971/-

3. Gross Profit/Loss(A-B) 10,95,000/-

4. Income-tax 25%

5. Net Profit/Loss 8,21,250/-

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12. BREAK EVEN POINT

Break Even Point = (Fixed cost * 100) / (Fixed cost + Profit)

= (19, 87,800 *100) / (19, 87,800 + 8, 21,250)

= 50.76

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Documents

STONE PROCESSORS