OFFSET PRINTING PRESS

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1 OFFSET PRINTING PRESS PRODUCT CODE : QUALITY AND STANDARDS : As per Customer s Specifications PRODUCTION CAPACITY (Per Annum) : Qty Nos. (Magazine/Souvenir) & 10,000 Nos. of Pamphlets Value : Rs. 1,12,10,000/- MONTH AND YEAR : June, 2014 OF PREPARATION PREPARED BY : Sh. Sunil Arora Investigator (Mechanical) 1. INTRODUCTION Offset Printing is the latest method of printing system in any language. The method of printing in earlier days was by rotary printing press in which the matter to be printed was to be first composed manually. In Offset printing, the matter which is to be printed is fed into the computer and after that with the help of the camera, it is exposed and film is prepared through developer/chemicals and put into Offset printing Machine to take out the print. Offset printing method is the latest one where the quality of printing is very fine in comparison to the previous method. 2. MARKET POTENTIAL Today is the age of technology. Offset Printing Press is the example of new technology. The required material may be printed in minimum time with good accuracy and better quality. Now days, the number of schools, colleges, offices and other business activities are increasing day by day. They require stationery, books and other printed materials. Therefore, Offset Printing Press has very good scope, particularly in Urban and semi Urban areas

2 3. BASIS AND PRESUMPTIONS Offset Printing Press i. This report is worked out on the basis of 75% capacity utilization on Single Shift and 300 working days per annum. ii. iii. iv. The machinery and equipment are of standard make. The cost of raw materials and other expenditure is approximate and based on current market rates. The period for achieving envisaged capacity utilization is estimated to be one year after commencement of production. v. Interest rate for fixed and working capital has been 16% per annum. vi. Payback period would commence after 12 months and the repayment period is estimated at 3 years. 4. IMPLEMENTATION SCHEDULE i. The entrepreneur has to arrive at a decision in order to select this product. The guiding factor in this regard would be the market potential, demand, supply gap and availability of resources. It may take 2 to 3 weeks time. ii. iii. iv. After selecting the product, the entrepreneur has to get provisional registration from DIC, so that he can apply for allotment of land, power, etc., for which about one week time is required. In order to obtain financial assistance from the financial Institutions, like Commercial Banks or State Financial Corporations, a detailed Project Report is required to be prepared. On the basis of the report, financial institutions may take 8 to 12 weeks time for sanctioning and disbursing the loan. Accordingly, orders for plant and machinery may be finalized and placed. Simultaneously, order for purchase of raw materials is also to be finalized and recruitment of key staff is to be done. This would require 3 to 4 weeks time. 5. TECHNICAL ASPECTS 5.1. Process of Manufacturing Process of Manufacture Composing of matter which is to be printed, is done on computer with the help of special Softwares such as Corel Draw, Photoshop, MS Office, Page Maker, etc. Thereafter a film is produced with the help of a camera. This film is called negative. The matter, which is to be printed, is taken on this film/negative. The negative and an aluminum plate are put into the printing down frame/ exposer. Before starting the exposer, the presetting of timer is done in the timer/watch. Generally it takes approx. 200 seconds for making positive. The time exposer is switched off automatically as soon as positive has been built up. The image of negative is printed on the aluminum plate, which is called positive. After that, the developer is spread on the plate followed by washing with the fresh water

3 Mechanical Division During this process, the matter gets printed on the plate automatically. Thereafter, the aluminum plate is fitted in the offset printing press. This plate is called P.S. Plate, when it is used for first time and thereafter it is called Y-pon Plate. The papers are cut on Paper Cutting Machine. Then the papers are fed one by one into Offset Printing Press. Generally the capacity of offset printing press is 4000 impressions per hour Production Capacity Quantity: 1,40,000 Nos. (Magazine/Souvenir) & 10,000 Nos. of Pamphlets Quality Control and Standards As per Customers requirements Pollution Control The manufacturing activity does not pose any pollution as such no special pollution measures are required Motive Power 13 HP 6. FINANCIAL ASPECT 6.1. Fixed Capital Land & Building: Covered Area 150 Sq. Mtr. rented at Rs. 10,000 per month Machinery and Equipments S.No. Description/(Ind/ Imp) Qty. Value (Rs.) 1 Off-Set Printing Machine Size18 x 25", Single Colour with 5 H.P. Dominent make (Ind.) 01 15, Computer Systems with Printer etc ,000 3 Printing Down Frame/Exposer, size 23x36" (Make- Memory) (Ind.) 01 1, 00,000 4 Paper Cutting Machine, Size 23 x 36", 2 H.P. (Ind.) 01 2,50,000 5 Paper Creasing M/c., 2. H.P (Ind.) 01 20,000 Paper Stapler Ind. M/c (Ind.) 01 10, Binding and measuring equipment. L.S. 10,000 Total 19,70, Electrification and Installation 10% L.S 1,97, Office furniture and equipment L.S 20, Pre-operative Expenses 10,000 Total 21,97,

4 6.2. Working Capital (per month) Salary & Wages Offset Printing Press S.No. Designation Nos. Salary Amount 1 Manager/Supervisor ,000 2 Skilled Workers ,000 3 Un-skilled Workers ,000 4 Watchman ,000 5 Peon , Raw Material Total 51,000 Add 15% perks 7650 Total 58,650 S.No. Particulars Qty. Rate (Rs.) Value (Rs.) 1 Paper Ream ,00,000 2 Card Sheet ,000 3 Aluminum Plate Ink (Black) 2 kg Developer 10 kg 150 1,500 6 Gum 10 kg 100 1,000 7 Multi Colours L.S 5,000 8 Staple Pin etc. L.S. 1, Utilities Total 6,82,000 1 Electric Rs. 6 per unit, 13 H.P. 12,000 2 Water 1,000 Total 13, Other Contingent Expenses (Rs.) Rent 10,000 Transportation charges 2,000 Postage and Stationery 1,000 Telephone 2,000 Publicity 2,000 Insurance and Taxes 4,000 Miscellaneous Expenses 5,000 Total 26, Total Recurring Expenditure (per month) Rs. 7,79,650/

5 Mechanical Division 6.3. Total Capital Investment Fixed capital 21,97,000 Working capital for 3 months 23,39,000 Total 45,36, FINANCIAL ANALYSIS 7.1. Cost of Production (per annum in Rs.) Total recurring cost per year 93,55,800 Depreciation on machinery & 10% 1,97,000 Depreciation on office 20% 4,000 Interest on total 14% 6,35, Turnover (per annum) Total cost of production 1,01,91,900 Item Qty. Rate (Rs.) Value (Rs.) Magazine/ Souvenir each 1,40, ,12,00,000 Pamphlets 10, , Net Profit (per annum) Turnover cost of production Rs. 1,12,10,000 1,01,91,900 Rs. 10,18,100/- Total 1,12,10, Net Profit Ratio Net profit per year Turnover per year 10,18,100 1,12,10, % 7.5. Rate of Return Net profit per year Total Capital Investment 10,18,100 45,36, % -186-

6 Offset Printing Press 7.6. Break-even Point Fixed cost per annum (Rs.) Depreciation on machinery& 1,97,000 Depreciation on office 4,000 Rent of Building 1,20,000 Interest on Total Investment 6,35,040 Insurance per annum 48,000 40% of Salaries 2,81,520 40% of other contingent expenses (excluding rent & insurance) 57,600 Total 13,43,160 B.E.P Fixed Cost Fixed Cost + Net Profit 13,43,160 13,43, ,18, % Addresses of Machinery and Equipment Suppliers:- 1. M/s. J. Mahaveer and Co. Ltd , Netaji Subhash Marg, Daryaganj, New Delhi M/s. Rajasthan Machine Tools 1712, Darjion Ka Chouraha, Khajanewalon Ka Rasta, Chandpole Bazar, Jaipur M/s. Prateek Machinery Pvt. Ltd. V-18A, Prabhu Marg, Tilak Nagar, Jaipur 4. M/s. Sharpline Engineering Co. B-9/ , Ist Floor, Sector 5, Rohini, New Delhi

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