PTFE (TEFLON) INDUSTRIAL PRODUCTS INTRODUCTION TEFLON has high impact strength and the resistance for high temperature. The electrical insulation properties are very high and equal to polypropylene. Teflon has excellent self lubricating property and therefore it is used in rings, oil seals gaskets, rods, bushes and bearings. It has wide applications in automobiles, electricals and chemical industries. MARKET POTENTIAL The user industries namely automobiles, electricals and chemical industries are growing faster and therefore there is a good demand for the TEFLON products. INSTALLED CAPACITY Product Installed No of working Capacity per Capacity per capacity hours per day day annum per hour 300 days per annum PTFE(TEFLON) Products 7.5 kgs 8 60 kgs 18000 Kgs PLANT AND MACHINERY S.no Items Qty Value Rs. lakhs 1 Hydraulic Press -150 Tonnes 1 4.00 2 Hydraulic Press -50 Tonnes 1 1.50 3 Hydraulic Press -25 Tonnes 1 1.00 4 Sintering oven 1 3.50 5 Lathe machine/grinding 1 3.00 6 Moulds 1 set 1.00 7 Testing equipment 1 1.00
MANUFCTURING PROCESS 15.00 Teflon moulding powder is filled in the mould and pressed in the hydraulic press to get the intermediate product. It is then sintered in the oven at 600degree where the Teflon products are fused with each other to the strength. The product is cooled and machined in high speed lathe according to the size required. RAW MATERIALS For MTS 18 Qty-MTs Rate/MT Value Rs. Lakhs Teflon Powder 18.54 850000 157.59 TOTAL 157.59 Packing materials 18.00 10000.00 1.80 LAND AND BUILDING Built up area-sq.ft 1500 Rent p.m.-rs per.5 per sq.ft 7500 Advance-10 months. Rs 75000 UTILITIES POWER & WATER Three phase- KW 30.00 Power charges Rs. lakhs p.a 3.42 Water-For process-litres per 0 day For human consumptionlitres/day 200
MANPOWER Monthly wages Total Supervisor 1 6000 6000 Skilled 4 5000 20000 Unskilled 6 3000 18000 Accounts Assistant 1 4000 4000 Sales Executive 1 5000 5000 Security 2 2000 4000 sub total 57000 Add benefits 20% 11400 Total per month 68400 TOTAL PER ANNUM-Rs. lakhs 8.21 SCHEDULE OF IMPLEMENTATION After arranging for funding the project and making available the premises, the project can be implemented in a period of three months. COST OF PRODUCTION AND PROFITABILTY Assumptions Installed capacity 18 MTs of PTFE(TEFLON ) products per annum. Capacity utilisation Year-1-60% Year -2-70% Year-3 onwards- 80% Selling price Rs.11.50 lakhs per MT(Rs11500 per kg) Raw materials As per the details given above Packing materials As per details given above Power Rs.3.42 lakhs per annum at 100% Wages and salaries Rs. 8.21 lakhs with increase 5% every year. Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual
Depreciation Selling general and administrative expenses Interest on Term loan Interest on working capital Income tax increase. Written down value method -15 % on machinery Rs.30000 per month with 5% annual increase 11% per annum 11 % per annum 33.66 % on profits LIST OF MACHINERY SUPPLIERS 1.Rubber Machinery Corporation, 3-Cawal street, Kolkata, 2.Excellent Engineers, NH.8 Near Dahisar Check Naka,PO Meera 401104, Thane 3.Hindustan Hydraulic Pvt ltd, Vikramaditya Towers, HP-1,First Floor, Alakananda Shoping complex, Kalkaji, New Delhi. 4.Nuchem Plastics Ltd, Engineering division, Faridabad 121 006 5.D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai 600 018. 6.Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari East, Mumbai 500 072. 7.Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad 382415, 8.Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad 121005. 9.Prasad Groups & Companies, Plot No. 14 16 GIDC Industrial Estate, Phase 1 Valva, Ahmedabad 382445 10.HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore 560 032. RAW MATERIAL SUPPLIERS 1.Hindustan Flourocarbons, 1042-Babukhan Estate, Basheerbagh, Hydearbad-500001 2.Gujarat Flourocarbons Ltd, Vadodara, Gujarat, 3.Dupont, Chennai
FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 0.75 Plant & Machinery 15.00 Other Misc. assets 0.50 Pre-Operative expenses 1.50 Margin for WC 3.00 20.75 2. MEANS OF FINANCE Capital 9.50 Term Loan 11.25 20.75 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-MTs 18 18 18 18 18 Utilisation 60% 70% 80% 80% 80% Production/Sales-MTs 11 13 14 14 14 Selling Price per MT-Rs. 11.50lakhs Sales Value (Rs.lakhs) 126.50 149.50 161.00 161.00 161.00 Raw Materials 94.55 110.31 126.07 126.07 126.07 Packing Materials 1.08 1.26 1.44 1.44 1.44 Power 2.05 2.39 2.74 2.74 2.74 Wages & Salaries 8.21 8.62 9.05 9.50 9.98
Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88 Depreciation 2.25 1.91 1.63 1.38 1.17 Cost of Production 108.74 125.15 141.66 141.93 142.28 Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38 Interest on Term Loan 1.24 1.08 0.77 0.46 0.16 Interest on Working Capital 1.23 1.23 1.23 1.23 1.23 Total 114.81 131.24 147.63 147.79 148.05 Profit Before Tax 11.69 18.26 13.37 13.21 12.95 Provision for tax 3.94 6.15 4.50 4.45 4.36 Profit After Tax 7.75 12.11 8.87 8.76 8.59 Add: Depreciation 2.25 1.91 1.63 1.38 1.17 Cash Accruals 10.00 14.02 10.50 10.14 9.76 Repayment of Term loan 0.00 2.81 2.81 2.81 2.82 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 3.94 25% 0.99 2.95 Consumables 2.00 0.18 25% 0.05 0.13 Finished goods 0.50 4.53 25% 1.13 3.40 Debtors 0.50 5.27 10% 0.53 4.74 Expenses 1.00 0.30 100% 0.30 0.00 14.22 3.00 11.22 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax = 8.87 Sales 161.00 6% Profit before Interest and Tax = 15.37 Total Investment 31.97 48%
Profit after Tax = 8.87 Promoters Capital 9.50 93% 7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 9.05 Repairs & Maintenance 0.73 Depreciation 1.63 Admin. & General expenses 3.97 Interest on TL 0.77 16.15 Profit Before Tax (P) 13.37 BEL = FC x 100 = 16.15 x 80 FC +P 29.52 100 x 100 44% of installed capacity