PROJECT PROFILE ON PAPER NAPKINS MANUFACTURINGUNIT
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1 PROJECT PROFILE ON PAPER NAPKINS MANUFACTURINGUNIT PROF. NO INTRODUCTION It is a small piece (6 *6 ) tissue paper piece, use for hand or face cleaning. These are becoming popular with the catering industry due to manifold usages. These are absorbent, higenic, light and can be had with attractive printing. 2. MARKET DEMAND Due to the Govt. emphasis on popularsing tourism, a new hotel, tourist resorts, holiday homes etc. are comin up very fast in the country. This is bound to increase the demand of the paper conversion products like paper napkins, with the increase of tendency of public and increase of good hotels. 3. PRODUCTION TARGETS Basis of estimation: 300 Working Days in a Year Single Shift basis 8 hours per shift Paper Napkins Quantity (Kg) Value (Rs) MANUFACTURING PROCESS Tissue paper roll are fed to the flexographic printing machine with attachment for the manufacturing of paper napkins wherein, these are printed and cut to the size with the device already fixed with the machine 5. QUALITY CONTROL STANDARDS Quality of the product must be as per customer satisfaction. P.No.34\1
2 6. LAND & BUILDING 1. Covered area Sq. Ft Uncovered area Sq. Ft Total area Sq. Ft Whether constructed or Constructed Rented 5. If constructed, constructed Rs value 6. If Rented, Rental value (per month) Rs N.A. 7. MACHINERY AND EQUIPMENT S.N. Description Qty. Value (Rs.) 1. Two colour flexographic machine with attachment of paper napkin 2. Testing Equipment L.S. 3. Edge sealing and cutting machine L.S. 4. Hand Tools L.S. 5. Sales Tax, Freight & Insurance etc Total RAW MATERIAL (PER MONTH) S.N Particulars Quantity (Kg) Value (Rs). 1. Tissue Paper 21 GSM Inks & Other Consumables L.S Packaging Material L.S Total P.No.34\2
3 9. STAFF & LABOUR (PER MONTH) S.N. Particulars Qty Rate Value (Rs) A Administrative and Supervisory (i) Manager (ii) Peon/ Chowkidar B Technical (Skilled-Unskilled) (i) Skilled Worker (ii) Unskilled Worker Sub-Total Plus 30% of salaries 3600 TOTAL OTHER EXPENSES (PER MONTH) 1. Rent of Land & Building 2. Electricity Charges Fuel Exp Advertisement & Travelling Transport Consumable & stores etc Potage expenses/ telephones Stationery Repairs & Maintenance s 1000 Total WORKING CAPITAL (FOR ONE MONTH) SL.NO. DESCRIPTION AMOUNT(RS) 1 Raw material (Only 3 Days) Salaries & Wages Other Expenses Total P.No.34\3
4 11. TOTAL CAPITAL INVESTMENT Building & Other Civil Works Machinery & Equipment Working capital for one month Total COST OF PRODUCTION (PER ANNUM) Total recurring cost per year Depreciation on machinery & equipment Interest on total 10% Total SALES PROCEEDS (PER ANNUM) S.N. Item Qty (Kg) Value (Rs.) 1. Paper Napkins Total PROFITABILITY (BEFORE INCOME TAX) 1. Annual Gross Profit % of Profit on Sales 1.17% 3. Break Even Analysis 3.1 Annual Fixed Cost Annual Sales Annual Variable Cost Break Even Point 52.73% Note: Lower net profit shows, higher competition among manufacturer, In addition to napkin concern would utilize its capacity in flexographic printing on job to job basis. Break-Even Analysis (% of Total Production envisaged) Annual fixed cost X = % Annual sales Annual variable costs P.No.34\4
5 15. Manufactures/ Suppliers of Machinery 1 Industrial Paper Machines (P) Ltd. A-32, Naraina Industrial Area, Phase I, New Delhi 2. Jitendra Agencies 5, shivsadan, sardar patel marg, Indore. 3. Indore machinery stores 40, siyaganj, main road, Indore Ph Huma Traders Infront of shajanabad thana, Shajanabad, Satna(m.p.) 5. Maruti Sales Corporation Badshah Chamber, 45, Jawahar Marg, Indore (M.P.) Suppliers of Raw Materials From Local paper market of the area or from paper mill. 17. IMPLEMENTATION PERIOD Proposed Project can commence production with in 6-8 weeks after sanction and first disbursement of term loan. 18. ASSUMPTION FOR GENERATING PROJECT PROFITABILITY 1 Number of Working Days in a year 300 Days 2 Number of Shifts in a day 1 One 3 Hours in a Shift 8 hours 4 Plant Capacity Consider on Average production capacities of plant. P.No.34\5
6 5 Raw material Estimates Based upon product Mix 6 Raw Material Availability All districts of MP 7 Depreciation Straight Line Method 8 Manpower According to project Requirement 9 Rent estimate On the basis of current market prize of the area. 10 Potential Area of Marketing the Hotels & Restaurants demand of the area. products 11 If project is funded, term loan 60-80% of Total investment would be 12 Moratorium Period 6-12 months 13 Repayment Period 5-7 years 14 Project may be established under PMEGP (GOI) / Tribal Self Employment Scheme (NSTFDC) or Rani Durgawati Scheme of MP P.No.34\6
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