PAPER PINS-BELL PINS

Transcription

1 PAPER PNS-BELL PNS A. NTRODUCTON One of the most widely used office stationery is Bell pins & Paper pins. This is widely consumed in offices, schools, industries and households. The demand is always growing for this product as there is no other substitute for this product. B. PRODUCT USES AND SPECFCATONS Paper pins are made of Mild steel wires of Gauge. t is pointed at one edge and the other end is round head. The pins are tinned or plated to make them rust proof. The pins shall be sufficiently strong and shall not bend in use. The pins shall be clean and bright. For this nickel plating is done. The paper pins are available in packing of 25 gms, 100 gms, 200 gms and 400 gms. C. MARKET POTENTAL The number of commercial organizations and industries are increasing year after year. The globalization and liberalization of industry and trade have also given birth to various commercial establishments and this provides ample scope for units manufacturing office stationery items. The growth of these items will be consistent. D. TECHNCAL ASPECTS 1. nstalled Capacity The installed capacity of the proposed unit is manufacturing of 144 Tonnes ( boxes of 400 grams each) per annum.this is based on single shift of 8 hours working per day for 300 days in a year. 1

2 2. Plant and Machinery The following machineries are required for production. Machine name Automatic paper Pin making machine capacity pcs per minute Quantity Value (Nos.) (Rs.Lakhs) Nickel Plating unit Miscellaneous tools Total Manufacturing Process The manufacturing of Paper pins involves the following sequence of operations. Feeding of Hard drawn bright wire of suitable gauge to automatic paper pin making machine Forming the paper pins in the machine Pickling and cleaning the pins in a plastic container Plating with Nickel in plating equipment Drying the plated pins in a drying drum Packing in cartons and despatching 4. Raw Material The raw materials required for manufacturing Paper pins are Hard drawn Bright Wire Rods of SWG. These are available from dealers. The Nickel plating materials are also available from the local dealers. 5. Land & Building A rented place with 1000 sqft. area is required. The monthly rent is estimated at Rs.5000 and also an advance of Rs Utilities Power: The total power requirement of the unit will be 5 HP 2

3 Water: Water is required only for human consumption. Man power: Category Nos. Monthly salary Total Salary Supervisors Operators Unskilled Assistants Security Total Add 20%benefits 7000 Total Annually Rs.5.04 lakhs 7. mplementation Schedule f financing arrangements is made available the project can be implemented within three months period. 8. ASSUMPTONS nstalled capacity per annum Paper Pins-144 Mt Capacity utilization- Year -1 60% Year -2 70% Year -3 80% Selling price per unit Rs /Mt Material cost at 100% Qty (including wastage ) Rate (Rs.) Value (Rs.lakhs) Hard Drawn Bright 151 Mt 25000/Mt wire rods SWG Nickel Plating For 144 Mt 5000/Mt 7.20 Consumables and Packing per annum-at 100% (Rs.lakhs) Power and Fuel-100% (Rs.lakhs) Wages & salaries-100% (Rs.lakhs) Repairs & Maintenance per month Depreciation General & administration Expenses per month Selling expenses nterest on term loan &Working capital finance ncome tax provision Rs.1.20 lakhs Rs.0.41 lakhs Rs.5.04 lakhs Rs.2000/- Straight line Method Rs.10000/- 3% on Sales 14% p.a 36% on profit 3

4 LST OF MACHNERY SUPPLERS 1. A.M..Machine Tools 20 Ambalal Doshi marg(hammam Street) Fort Mumbai K.B.Machine Factory Sultan Wind Road Amritsar. 3. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai Ajith Wire Products No.41, Gokal Ka Bagh (New 100 feet Road) East Mohan Nagar, Amritsar 5. S.B. Machine Toosl 23/4, Street 11, Ananth Prabat ndustrial area, New Delhi LST OF RAW MATERAL SUPPLERS 1. Matchless Wire Products 1/9-D TR Street Kondithope Chennai Decan Wires & Weldings Pvt. Ltd. 18, Shanthappa Lane S.P.Road, Cross Bangalore Swill Ltd. 18, Kandi chetty Street, Chennai Wire & Wire Products New No.26, Vepery High road, Perimet, Chenni Standard Wire Products 145/219, SDCO ndustrial Estate, Ambatture, Chennai

5 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 0.50 Plant & Machinery 6.00 Other Misc. assets 0.50 Pre-Operative expenses 0.50 Margin for WC MEANS OF FNANCE Capital 4.22 Term Loan

6 3. COST OF PRODUCTON & PROFTABLTY STATEMENTS [Rs.lakhs] Years nstalled Capacity p.a. (MT) Utilisation 60% 70% 80% Production/Sales p.a. (MT) Selling Price/ MT (in Rupee) 45,000 per MT Sales Value (Rs.lakhs) Raw Materials Nickel Plating Consumables Power Wages & Salaries Repairs & Maintenance Depreciation Cost of Production Admin, & General expenses Selling expenses nterest on Term Loan nterest on Working Capital Total Profit Before Tax Provision for tax Profit After Tax Add: Depreciation Cash Accruals

7 4. WORKNG CAPTAL: [Rs.lakhs] Months Values % Margin Bank Consumption Amount Finance Raw Materials % Consumables % Finished goods % Debtors % Expenses % PROFTABLTY RATOS BASED ON 80% UTLSATON Profit after Tax 2.75 Sales % Profit before nterest and Tax 5.12 Total nvestment % Profit after Tax 2.75 Promoters' Capital % 7

8 6. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 5.55 Repairs & Maintenance 0.26 Depreciation 0.70 Admin. & General expenses 1.32 nterest on TL Profit Before Tax (P) 4.30 BEL = FC x x FC +P x % of installed capacity 8