PRODUCTION CAPACITY : 720 Cartons (Per Annum) Value : Rs. 40,32,000/-
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1 WHITE STAPLE PINS PRODUCT CODE : QUALITY AND STANDARDS : IS 4224:1972 PRODUCTION CAPACITY : 720 Cartons (Per Annum) Value : Rs. 40,32,000/- MONTH AND YEAR : June, 2014 OF PREPARATION PREPARED BY : Sh. Harinder Kumar Investigator (Mechanical) 1. INTRODUCTION The project is to manufacture staple pins especially of galvanized iron wire type, commonly known as white staples. These staples find wide application to staple sheets of paper, cheque, common known bills, album photos, sandwich bags and in financial institutions, offices, garment industry, leather industry, and rubber industry and any shop delivering the materials in packets and so on. These white shining staples of good quality are currently imported involving an estimated foreign exchange drain of Rs. 60 crore per year. Also some white staples made from substandard wires have been in the market. However, neither of these are comparable in quality and performance to these of white staples such as those of MAX of Japan. 2. MARKET POTENTIAL White staples made in India can compete without strain against MAX of Japan especially since the matching quality is assured while the whole sales price is low per packet of No. 10 staples. With the assistance of sales representatives and a network of dealers organization, it is apparent that the staple pins can be sold easily in domestic market. The project also envisages entering exports especially since the staple pins can stand up to the rigors of the International quality standards
2 3. BASIS AND PRESUMPTIONS White Staple Pins i. The basis for the calculation of the production capacity is calculated on single lift basis on 75% efficiency. ii. iii. iv. The rate of interest in the scheme has been taken on the basis of 14% at an average. How-ever, this figure is likely to vary depending on the financial outlay of the project as well as location of the unit. The breakeven point in the scheme has been calculated on the full capacity utilization basis. Labour wages-estimated on the minimum wages. v. The Cost of machinery, equipment, raw material and other expenditure initiated in the profile are based on the prices prevailing at the time of project preparation. Therefore they are subject to necessary change from time to time based on local condition and availability. 4. IMPLEMENTATION SCHEDULE S.No Activity Market survey for collection of data in respect of demand, raw material, machinery and selection of site. Preparation of project document and registration and other clearance. Estimated period required 4 Weeks 4 Weeks 3. Arrangement of finance /loan 4 Weeks 4. Procurement of machinery & equipment & Installation 6 Weeks 5. Purchase of raw materials 2 Weeks 6. Trail Production 2 Weeks Total 22 Weeks 5. TECHNICAL ASPECTS 5.1. Process of Manufacturing The process of making staple pins has been simplified with introduction of sophisticated fully Automatic Staple Pin Making Machines. The preformed round wire is fed to the machine which flattens it and produces the necessary staple pins in pre-determined lengths of 50staple pins in each length. The formation of this length is assisted by the use of a special staple pin adhesive, also developed in India. The staple pin lengths are packed suitably with each packet containing 1000 pins. 20 of these packets are packed in a box and 40 of these packets are packed in cardboard carton Production Capacity 720 cartons of staple pins -157-
3 Mechanical Division 5.3. Quality Control and Standards The pins should be manufactured as per relevant Indian specification IS 4224: Motive Power 12 HP 5.5. Pollution Control Manufacturing of this product does not attract pollution control measures Energy Conservation The unit is equipped with low powered machinery. The energy conservation efforts need in this unit is creation of awareness among the workers. 6. FINANCIAL ASPECT 6.1. Fixed Capital Land & Building: Covered Area 120 Sq. Rs /- per month rent Machinery and Equipments S.No. Description Qty. Amount (Rs.) 1. Automatic staple pin making machines,1 H.P. 11 nos. 20,35, Double ended Bench grinder 8" wheel size, 0.5 H.P. 02 nos. 14,000 Sub Total 20,49, Installation and electrification@ 10% - 2,04, Tools, fixtures & measuring instruments. - 25, Office equipment, furniture etc - 30, Preoperative expenses 12,000 Total 23,20, Working Capital (per month) Salary & Wages S.No. Designation Nos. Salary (Rs.) Total (Rs.) 1. Supervisor 1 11,500 11, Skilled Workers 1 10,500 10, semiskilled Workers 2 9,500 19, Clerk 1 10,400 10, Watchman cum-peon 1 9,500 6, Helper 2 8,600 17,200 Total (salaries) 60,000 75,100 (+) 15% of salaries 11,265 Total 86,365 Say 86,
4 Raw Material S.No. Description Indigenous/ Imported Qty. Rate White Staple Pins Price (Rs.) 1. Preformed Round M.S. wire Indigenous 1000 Kg. 44 per Kg. 44, Adhesive -do- 55 Ltr , Packing material /Boxes -do- 20,000 Total 75, Utilities 1. Rs. 7 per unit Rs. 11, Water L.S. Rs. 2, Other Contingent Expenses Total Rs. 13,000 S. No. Particulars Value (Rs.) 1. Rent 10, Postage and Stationery Telephone Consumable stores Repairs and Maintenance Insurance Transportation charges Advertisement and publicity Miscellaneous 1500 Total 19, Total Recurring Expenditure (per month in Rs.) 1. Raw Material 75, Staff & Salary 86, Utility 13, Other Expenses 19, Total Capital Investment Fixed capital Rs. 23,20,900 Working capital for 3 months Rs. 5,81,700 Total Rs. 29,02,600 Total 1,93,
5 Mechanical Division 7. FINANCIAL ANALYSIS 7.1. Cost of Production (per annum in Rs.) 1. Depreciation on 10% 2,04, Depreciation on Tools, Fixture & 20% 5, Depreciation on office equipment & 20% 6, Working Capital 23,26, Interest on total capital 14% (Round off) 4,06,400 Total 29,49, Turnover (per annum) By sale of 720 cartons No.10 Rs. 40,32,000/- Staple Rs. 5600/ carton 7.3. Net Profit (per annum) Turnover cost of production Rs. 40,32,000 29,49,100 Rs. 10,82,900/ Net Profit Ratio Net profit per year Turnover per year 10,82,900 40,32, % 7.5. Rate of Return Net profit per year Total Capital Investment 10,82,900 29,02, % -160-
6 White Staple Pins 7.6. Break-even Point S.No. Fixed Cost (Per Annum) (Rs.) 1 Rent 1,20,000 2 Insurance 12,000 3 Depreciation 2,15,900 4 Interest on capital investment (Round Off ) 4,06, % of Salary and wages (Round Off ) 4,14, % of other contingents expenses (excluding rent& Insurance) 40,800 Total 12,09,800 B.E.P Fixed Cost Fixed Cost + Net Profit 12,09,800 12,09, ,82, % Name and Addresses of Machinery & Equipment Suppliers:- 1. M/s S. B. Machine Tools, 23/4, Anand Parbat Indl. Area, New Delhi 2. M/s Rawat Industries, WZ-504, Basai Dara Pur, New Delhi 3. M/s J. M. Machine Tools B-17, Industrial Area, Anand Parbat, New Delhi Raw Material Raw Material is available locally
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