MIRROR MANUFACTURING

Transcription

1 MIRROR MANUFACTURING A. INTRODUCTION Mirror silvering is one of the oldest crafts known in India. Mirrors are used every where for utility purposes and for aesthetic values. The consumption is increasing. B. PRODUCT USES Mirrors are made with glass sheets of different thicknesses ranging from 2 mm to 7 mm. They are coated on one side with chemicals to give desired reflection. The glass mirrors have household use and industrial use. The quality standards for mirrors are IS: Slivered Glass Mirrors for general purpose and IS: specification for furniture mirror (re-affirmed 1987) C. MARKET POTENTIAL With the rise in standard of living of the people the demand for mirrors is increasing. The increase in number of households also results in increased demand for mirrors. Mirrors are also used in fancy shops, jewellery shops, hotels, bars, saloons, furniture, tailoring shops, theatres, beauty parlours, show rooms, offices, automobiles etc. It is an essential item for every one, men and women alike. As the mirror is breakable the replacement demand is also large. D. TECHNICAL ASPECTS 1. Installed capacity The installed capacity is 800 sq.ft. of mirror per day. This works out to sqft. of mirrors p.a. 1

2 2. Plant and Machinery Value (Rs.) Bevelling M/c. Semi Automatic Surface polishing M/c Bevel Polishing M/c Spray gun with air compressor Drilling M/c Tools: Diamond drill bits High Carbon drill bits Diamond cutters Measuring jars. Total Manufacturing Process Float sheet glasses are cleaned by chemical process or by surface polishing to clear surface contamination so as to give proper adherence. They are then given further treatment known as sensitising which makes the surface active for attracting silver metal (Silver nitrate ammonia solution) the glass is silvered either by spraying process or by pouring method. They are given copper coatings to protect silver from getting damaged. The sheets are then treated with a protective coating by painting. 4. Raw Materials The raw materials required to manufacture mirrors are plain glass, silver nitrate, paints and other chemical such as ammonia, sulphuric acid, sodium, copper coating and packing materials. 2

3 5. Land & Building A 2000 sqft. shed with an office is required. The shed may be arranged on rental basis. The rent is assumed as Rs and advance is assumed as Rs.1.60 lakh. 6. Utilities Power: About 10 HP power load is sufficient for the operation of the unit. Water: Water is used only for surface cleaning. About 500 litres per day will be sufficient. Effluent: The process does not discharge any harmful effluent. Exhaust and drainage can be provided. Man Power: Category Nos Monthly Total Skilled labour Unskilled labour Delivery boys Accountant Assistant Total Add: 20% benefits Total Annual Salary (Rs.lakhs) Rs.8.50 lakhs 3

4 7. Implementation Schedule The project can be implemented in 3 months period if finance is arranged for. 8. ASSUMPTIONS The Installed capacity is 240,000 sq. ft. mirrors per annum. The capacity utilisation assumed at 60%, 70% and 80% for the first three yeas respectively. Selling price assumed at Rs per sq. ft. The mirrors are available in 2 mm, 3 mm, 4 mm, 5mm and 6 mm. The price varies from Rs.20 to Rs.10 per sq. ft./mm. The average price assumed is Rs for 5 mm thickness. The raw material cost including sheet glass is Rs per sq. ft. Rs. Sheet glass 5 mm thick Other chemicals such as Silver nitrate, reducing agent, cleaning agents Sensitising chemicals, distilled water, paints And packing materials Total Misc. Consumables is assumed at Rs.6000 per month. Power charge is calculated at current rates (Rs.5.00). Wages & Salaries is assumed at Rs.8.50 lakhs p.a. Repairs & Maintenance is assumed at Rs.1000 per month. 4

5 Depreciation is calculated on WDV method. Selling, General & Adm. Expenses amount to Rs per month. Interest on Term Loan is calculated at 12% p.a. Interest on working capital is calculated at 12% p.a. Income tax is provided at 33.99% on taxable income. LIST OF MACHINERY SUPPLIERS 1. Narang Class, , Ridge, Hyderabad LIST OF RAW MATERIALS SUPPLIERS: 1. Mahaveer Industries, 126, Choolai High Road, Chennai Sri lakhshmi Enterprises, No.60, Devaraj Mudali Street, Chennai Globe Mirror agencies, 73, Devaraja Mudali Street, Chennai CHEMICALS & PAINTS All chemicals dealers are in Chennai. 5

6 FINANCIAL ASPECTS 1. COST OF PROJECT Rs.lakhs Building (Advance) 1.60 Plant & Machinery 2.75 Other Misc. assets 0.00 Pre-Operative expenses 0.50 Margin for WC 3.24 Total MEANS OF FINANCE Capital 5.49 Term Loan 2.60 Total COST OF PRODUCTION & PROFITABILITY STATEMENTS Years Installed Capacity (Sqft.) Utilisation 60% 70% 80% Production/Sales (Sqft.) Selling Price Rs per sqft. Sales Value (Rs.lakhs) Raw Materials Packing Materials Power Wages & Salaries Repairs & Maintenance Depreciation Cost of Production Selling, Admin, & General expenses Interest on Term Loan Interest on Working Capital Total Profit Before Tax

7 Provision for tax Profit After Tax Add: Depreciation Cash Accruals WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials % Finished goods % Debtors % Expenses % PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 5.39 = Sales Profit before Interest and Tax 9.74 = Total Investment Profit after Tax 5.39 = Promoters Capital % 44% 98% 7. BREAK EVEN LEVEL Fixed Cost (FC): Rs.lakhs Wages & Salaries 9.38 Repairs & Maintenance 0.14 Depreciation 0.30 Admin. & General expenses 7.94 Interest on TL Profit Before Tax (P) 7.85 BEL = FC x = x FC +P % of installed capacity x 100 7

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