PROJECT PROFILE ON HDPE / PP WOVEN SACKSPRODUCT : HDPE / PP WOVEN SACKS . PRODUCT CODE : 303503009. QUALITY & STANDARDS : As per Customer’s specification & IS: 9755 – 1981 & IS:8069 – 1981. PRODUCTION CAPACITY (P.A.) : Quantity Value (Rs.) : : 353 M. T. 3,99,06,650 MONTH & YEAR OF PREPARATION : January, 2011. PREPARED BY : MSME - Development Institute, Ministry of Micro, Small & Medium Enterprises, Government of India 107, Industrial Estate, Kalpi Road, Kanpur-208012. Tele. 2295070, 2295071 & 2295073 (EPBAX) Tele. No. 2295072 (SENET & TRC) Tele/Fax No.: 0512- 2240143 Email: [email protected] Webebsite: msmedikanpur.gov.in Lighter in weight & have more advantages than conventional bags. salt. moisture & excellent resistance towards rotting & fungus attack. detergents & many other items are also being packed in woven sacks. The demand for woven sacks is sluggish for a variety of reasons. which have high . These sacks are much cleaner & resist fungal attack. INTRODUCTION HDPE/PP oriented strips are becoming increasingly popular in India & have caught the eye of many end users for their requirement of packing materials. They have become popular on account of their inertness towards chemical. books binding Cinema screen wall facing & carpet backing etc. Fabric from HDPE strips is also ideal for the manufacture of shopping bags. cattle feed. pesticides. PROJECT PROFILE ON HDPE / PP WOVEN SACKS 1. Jute prices are very unstable in the market since Jute is an agriculture product. The major users of HDPE/PP woven sacks are fertilizer. MARKET POTENTIAL: At present there is under utilization of existing capacity due to marketing problems after introducing of Jute packaging Mandatory Order 1986. sport hold-all. deck chairs. HDPE woven sacks are much stronger & can withstand much higher impact loads because of HDPE strips elongation at break is about 15-25% as compared to 30% of Jute. These sacks have many advantages over other conventional sacks materials & are quite competitive in price. cement & other chemical Industries.1 . PP/HDPE woven sacks laminated with LDPE/PP liner have wider applications. Oil seeds. starch. 2. They are non toxic. A few years back Flat looms were used for the manufacture of woven sacks. sugar. Now it has been manufactured on circular looms. No.25 days & 300 days per year. 7. plant & machinery. Activity Acquisition of land Filing of EM-I. of raw materials equal to 6. of woven sacks. The cost of land & building. The unit will run on single shift of 8 hours per day. 2. One kg. electrification and commissioning 1-3 months of machinery and other facilities NOC from Pollution Control Board Trial run 1. 2. This helped in minimizing the cost of production. 3.2 . BASIS AND PRESUMPTIONS: 1. 1. IMPLEMENTATION SCHEDULE : Every project requires some specific time for commercial production and are briefly as under:Sl. 8. 4. however due to high cost of jute bags & also due to resistance to chemicals. Moisture etc.65 nos. raw materials . 6. 4. 3. labour cost & finished goods are as per prevailing market rate. most of industry prefer HDPE/PP woven sacks for packaging. 4. The wastage during production is considered 2%.2 months From months onwards 9 . productivity. Building construction Financial Arrangements Procurement of Machinery Expected time 1 month 7 days 3 months 2 months 3-5 months Installation. 3. 5. T. (A) FINANCIAL ASPECTS: Fixed Capital: i) Land and Building : Land – 4000 Sq.00. Mtrs.Sq. which cut into required length & width & stitched with the help of industrial sewing machine. Ft. @ Rs.000/- Rs. 20.250 iv) Motive Power Requirement: 185 KW (250 HP Approx.000/90. TECHNICAL ASPECTS i) Production detail & Process of Manufacture: The process involve the production of tape with the help of tape extrusion machine followed by knitting to form cloth on circular weaving machine.000/- . Rs. ii) Quality Control & Specification: IS : 6753.73.– 1981 for fertilizers IS : 8069.81. iii) Production Capacity ( per annum ) a) Quantity b) Value (Rs. 4. : Rs. @ Rs. A printing may also be done as per requirement on cloth with the help of two colour printing machine.10. 1.) : 475 M. 5.3 .00. Mtrs.) 6.Sq. Fts. Built up Ara – 9000 Sq.– 1981 for pesticides HDPE woven sacks can also be manufactured as per the requirement & major purchasers. 1000/.00. Total: ii) Plant & Machinery: Rs. 500/. 000/4.000/20.49.000/4.000/3.000/1.000/- (B) Working Capital (Per Month): i) Staff and Labour ( per month) Sl.000/30.000/- Total Fixed Capital Requirement: 1.00. 2.000/3.00.000/5.35.000/50.30.60.000/Total: 1.000/1.000/20.35.45. 1 2 3 4 5 6 7 8 9 10 11 Description Tape extrusion line cap.00. No.) 12.60. 135-150 kg/hr.45.Total Total Amount (Rs.) 12000 8000 5000 5000 5000 6000 4500 4000 3000 4000 4000 3000 Sub. print area 28”X43” with 3 HP motor Weighing machine Laboratory equipment Transformer 11 KVA Other expenses Electrification & installation charges @ 10% of the cost of plant & machinery Office furniture Qty (Nos.) 1 12 1 10 1 . No.000/6.4 Sl.10.000/16.600M Chease winders with shuttles Circular weaving machine Heavy duty sewing machine Two colour printing machine with max.500/- Perquisites @ 15% of salary .00.500/1.000/2. model Lohia Lorex E 60.000/12.000/8.55. Value (Rs.60.000/18. 1 1 1 1 2 1 4 4 10 1 1 4 Rate (Rs.000/- 1 75. Land & Building Plant & Machinery 1.000/Total: 2.35.10.) 95.00.000/10.000/5.000/5.000/13.000/19. 1 2 3 4 5 6 7 8 9 10 11 12 Designation Work Manager Sales Manager Accountant Store keeper Clerk cum typist Foreman Supervisor Skilled Worker Unskilled Worker Electrician Fitter Peon/Guard No.000/1. 64. 2.) 18. 6. 3.000/25.000/10. No.00. Total Quantity 30 MT Rate (Rs) 62000/MT .) 2. 5. c.000/2.000/1. 1 2 Particulars HDPE / PP Granules Other misc.55. items.000/10. Description 1.60.000/2.70. 4.500/: : : : : : : Amount in Rs.000/- iii) Utilities: Sl. b.500/18.00.500 X 3 = 7.000/10.20. 5. d.28. 1 2 Particulars Electricity & Power Water Quantity 40000 units Rate Rs.000/50.5 ii) Raw Material: Sl.000/- iv) Other Contingent Expenses: Sl.000/23.93. 5. a. Total Capital Investment: a) b) Fixed Capital Working Capital for 3 months Total: 2. Salary & Wages Raw material Utilities Other contingent expenses : : : : Total: : Total Working Capital for 3 months = 23.000/1.500/- .64. No.500/3.26.35.000/70.50/unit Total Value (Rs.85.85.000/10.000/15.000/18.93.30.000/- : Rs.30.49. Value (Rs.500/1. Telephone and stationery Travelling & Transport Advertisement & Publicity Repair & Maintenance Insurance & Taxes Other expenditure Total v) Total Recurring Expenses. No. 28.000/13.650/-X 100 3. Total : (B) Turnover (per annum) Sales proceeds as shown below: Item HDPE / PP Woven Sacks Quantity (M.) 3.06.10. Financial Analysis: (A) Cost of production (Recurring Expenses) ( per annum ) S.82% (E) Rate of Return: Profit/Annum X 100 Total Capital Investment 67.650/- (C) Net Profit (Per Annum): Turn Over 3.57.44.31.650/- (-) Cost of Production (-) 3.06.000/Rs.71.650/. Trial run) Interest on 75% on loan @ 12.T.125/2.59.650/- = 16.28.50.6 Means of Finance: i) ii) Promoter’s share Loan from Financial Institution 25% 75% Total: 8. 3.13.26.000/30. 1.13.) 2.99.99. No.000/4. 67.06.57% .74.5% p.000/- Value (Rs.13.99.650/- (D) Net Profit Ratio (Per Annum): Profit/annum X 100 Sales Per Annum 67.000/3.) 353 MT 2347450 bags Rate (Rs.31. 17/each .93.) Rs.375/3.X 100 3.26.500/- Amount (Rs. 2.93.83.500/= 20. 4. Particulars Total Recurring Expenditure Depreciation on Building @ 5% Depreciation on Machinery & Equipments @ 10% (Except Electrification & Installation.a. 81. M/s Boolani Engg. Brimco House. Govt. M/s Lohia Starlinger Limited.000/7. 193. Interest on loan @ 12. 40% salary and wages 40% of Utilities 40% of other expenses Total Fixed Cost: Break Even Point: Fixed Cost X 100 Fixed Cost + Profit 71.600/.000/71. D-3/A. Veer Savarkar Road.600/- 9..10. Auraiya. Depreciation on Building @ 5% p.17. Mumbai-400021.a. Kandivili.. Depreciation on Plant & Machinery @ 10% p.000/13.600/11. Names and Addresses of Plant & Machinery Suppliers: 1. Mumbai-400025. Panki Industrial Estate.) ******* 2. 2.a. Dibiyapur.47% 4. 10. Ltd.000/4.20.59. (F) BREAK EVEN POINT: Fixed Cost (Per Annum): 1. 55.80.50. M/s Brimco Plastic Machinery Pvt. Dist. Names & Addresses of Raw Material Suppliers: 1.P. GAIL. Corporation.X 100 71. Prabhadevi Industrial Estate. Backbay Reclamation Nariman Point. 3. 5. 2. (U.5% p. . 6. 402.7 . Industrial Estate.20. Mumbai-400067.650/= 51.000/30.600/.+ 67.20. 3.a. Kanpur-208022.13.04. 4. M/s Hoechst Dyes & Chemicals Limited. Hoechst House.