Project Profile - ELECTRONIC BILLING PAPER ROLLS

I. PRODUCT AND ITS USES

         Now a days most of the business operation are conducted with computerized billing system. Hence the potential Demand for Billing Rolls is on the increased. Hence there one is difficulty in the marketing Paper Rolls for computer billing.

PRODUCTION TARGETS (Per Annum)

         Quantity – 47, 00, 000 No
         Value – Rs.18, 80, 000

BASIS & PRESUMPTIONS

        1.         Single shift of 8 hours a day, 25 days a month and 300 days in a year is presumed. Efficient machines and                     workers are also presumed.
        2.         Minimum 6 month period is considered for achieving full capacity utilization
        3.         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 project profiles and may vary depending upon                     various factors.
        9.         Whereas some names of manufacturers, suppliers of machinery and equipment, raw materials etc. are indicated                     at the end of the profile, those are by no means exclusive or exhaustive.

PRODUCTION DETAILS AND PROCESS OF MANUFACTURE

         The process of manufacture consists of the following operations.
         The Paperboard reel is loaded on the machines and the machine is started after threading. While the machine is in operation, the paper is embossed between two embossing rollers; the edges are ground to the required angle at the pre-adjusted place. Two pairs of knieves cut the required shape and one end of the cut piece is pressed to the winding spindle by a pressbar. To prevent paper from slipping of the spindle, it is sucked on to the spindle by vaccum pressure. A revolving brush applies when the spindle begins to rotate the paste and the cones are wound, the base and nose of the cones are trimmed by special circular knieves. Finally the finished cone is ejected out on to the tray by compressed air. The wet cones are then air-dried. After the cones are dry, the nose part is nosed (smoothened) on a nosing machine. Then these are checked for quality and packed.

IMPLEMENTATION SCHEDULE

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

FINANCIAL ASPECTS: -

Fixed Cost

I. Land and Building:

        Built up area - Working shed, office, stores, etc.
        500 sq. meter Rental basis ----------------------------------------------------------------5,000

II. Machinery and Equipments:

        a)         Automatic paper Roller Making Machine suitable to
                    manufacture 2” x 3’ embossed paper rolls provided with Hollow
                    making spindle and with a vacuum and are compressed with and
                    fitted with rollers and fitted with motors and suitable controlled
                    panel and provided with a suitable dust collecting unit ---------------------------------3,50,000

        b)         Paper Roller top nosing and base cutting machine fitted with a
                    circular knife and automatic Rolling ejecting device and driven by
                    a 2 HP Motor and fitted with switched and starter ------------------------------------55,000

        c)         Paste Mixing Machine fitted with chimney blades with 0.5 HP Motor,
                    with switch etc. ----------------------------------------------------------------------25,000

        d)         Hand tools and spares --------------------------------------------------------------15,000
                                                                                                                                                   4,45,000
                    Packing forwarding taxes, freight etc. -----------------------------------------------25,000
                    Installation and Erection charges ----------------------------------------------------45,000
                    Office equipment and other equipments ---------------------------------------------55,000
                                                                                                                                                    5,70,000
                    Pre-operative expenses -------------------------------------------------------------25,000
                                                                                                                                                    5,95,000

III. Staff and Labour

        Manager                                  1        5,000
        Accountant cum Clerk             1        3,000
        Foreman/Supervisor                1        3,000
        Skilled Workers                      2        5,000
        Unskilled Workers                  6        12,000
        Watchman/Peon                      1        1,800
                                                                 29,800
                                                                 4,500
                                                                 34,300

IV. Raw materials per month

        Mill Board 6 MT @ Rs.9, 500/MT -----------------57,000
        Starch 600 kgs. @ Rs.6/- per kgs ------------------3,600
        Packing Materials, waste cloth etc. -----------------5,000
                                                                                       65,000

V. Utilities

        Power 1300 units @ Rs. 4/- -----5,200
        Water 300 ----------------------500
                                                           5,750

VI. Other Expenses (per month)

        Rent ------------------------5,000
        Postage and Stationary -----500
        Repair and Maintenance ----1,000
        Transportation --------------500
        Insurance -------------------500
        Misc. Expenses -------------500
                                                    8,000

VII. Working Capital (per month)

        Staff and Labour ----------34,300
        Raw Materials ------------65,600
        Utilities -------------------5,750
        Other expenses -----------8,000
                                                1,13,650


        Working Capital for 3 months = 3,40,950/

        Say ------------------------Rs.3, 41, 000/-

VIII. Total Capital Investment

        1.     Fixed Capital --------------------5,95,000
        2.     Working Capital -----------------3,41,000
                                                                    9,36,000

IX. Cost of Production (per annum)

        Working Capital 13,------------------------------------------------------63,800
        Depreciation on Machinery @ 10% on 4,30,000/- -----------------------43,000
        Depreciation on Moulds and tools @ 25% on 15,000/- ------------------3,800
        Depreciation on office equipments @ 20% on Rs.55, 000/- --------------11,000
        Interest on capital investment @ 14% on 9,36,000/- ---------------------1,31,000
        Total                                                                                                       15,52,600

X. Total Sales (per annum)

        47,00,000 Nos. Paper Rolls @ Rs.400 per 1000 Rolls 18,80,000

        18,80,000 – 15,52,600 3,27,400

        Profit Ratio = 3,27,400 x 100 / 18,80,000

        = 17.41%

        Return = 3,27,400 x 100 / 9,36,000

        = 34.98%

XI. Breakeven Analysis:

        Fixed Cost
        40% Salaries ------------------1,64,000
        40% other expenses -----------12,000
        Depreciation -------------------57,800
        Rent ---------------------------60,000
        Insurance ----------------------6,000
        Interest on Capital -------------1,31,000
        ---------------------------------4,31,400

B.E.P. = 4,31,400 X 100 / 7,58,800

           = 56.85%

Breakeven Point

Fixed Cost

        Depreciation on Machinery & Equipment, Tools & Fixtures,
        Office Equipments ---------------------------------1,07,500
        Interest on Total Capital Investments ---------------2,24,400
        Insurance ------------------------------------------6,000
        Rent -----------------------------------------------60,000
.        40% of Salaries and Wages -----------------------1,53,600
        40% of Other Expenses ----------------------------21,600
                                                                                        5,73,100

Breakeven Analysis = Fixed Cost x100 / Fixed Cost + Profit

        = 5,73,100 x 100 / 10,14,800

        = 56.47%

Addresses of Suppliers of Machinery and Equipments

        1.     M/s. K.U. Sodal Muthu & Company,
                15/94. Mettupalayam Road,
                Coimbatore – 641 011
                Tamil nadu.

        2.     M/s. Indo Europe Trading Company,
                9, Dalal Street,
                Mumbai.

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

        4      M/s. Rockford Business Links,
                K-120/6, Bougain villa,
                Anna nagar East,
                Chennai.

Name Addresses of Raw material Supplier

        1.     M/s. Rajagopalan Paper & Board Mill,
                Umayalapuram, Rayaluam (p.o),
                pin 622 506 Pudukottai.

        2.     M/s. Punalur Paperm Mills,
                Punalur,
                Kerala.

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

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

        5.     M/s. Lampack Paper Products,
                A-1, Industrial Estate,
                Visakapatnam, Andrapradesh.

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