Project Profile at a glance1. Name of the Project: “Plywood Manufacturing Industry” 2. Location within State/Country: Narnaul Dist, MahendraGarh State: Haryana 3 .Nearest Rail & Road Connection: i) Nearest Railway station is Narnol Railway ii) Nearest Road connection is State Highway and National Highway 4 .Estimated Capital Cost of the Project: The total project cost is Rs..00 5 .Capital Equipment : Peeler Veneer Dryer Veneer Splinter Veneer Splicer Gluing Machine Conveyor Hot Press Sanding Machine (Drum Sending) Boiler with its accessories Polishing 6 .Raw materials : Hardwood, Softwood & Adhesives. 7 .Environment Impact: The project is an environment friendly activity, only Government certified timber will be used for production such as Eucalyptus and Poplar. . 8 .Foreign Exchange Cost component: Nil 1 9. Time-frame for selection & Completion Project: Within a period of 12(Twelve) months. 10. Other General Information: The competitive advantage of the project over other Plywood production units in the State shall be in terms of volume of production, quality and price because of the installation of improved type machinery. Advantages over other units are due to the availability of skilled manpower, adequate Raw materials resources as well as high market potentials, security environment to be created by the State Government especially for the above project etc. MISSION OF THE PROJECT To provide jobs to rural skilled and unskilled people. To develop the economy of the region. To popular eco friendly products. To obtain maximum growth with minimum investment. To use the modern technology to the plywood industries. 2 History and Origin Plywood has it origins in laminating veneers around 3. Today. From the mid 1800’s ‘modern’ plywoods were utilized in pianos. industry wide quality control program. and other panel products. As Australasian plywood can be used in critical structural applications where the costs of failure can be high. Plywood came of age as a versatile construction material in the 1930’s when water resistant resins were used as glues giving plywood longevity and integrity. furniture and tea chests. there is a requirement for high reliability combined with consistent quality.500 years ago in Egypt during the days of the Pharoahs. In 1960 the mills used timber from indigenous forests with around 80% of the production being for interior use. Thus the PAA quality brand permits easy identification and assures the customer the plywood is a quality product and meets the relevant Standard. process control based. Brisbane. so the industry invested heavily in CSIRO research to better understand the manufacturing process and improve productivity. the nine. Thereafter Brisbane became the main centre of plywood manufacturing activity with the 10 mills producing about two thirds of all Australian production. This is provided by the Plywood Association of Australia’s third party audited. The early Greeks and Romans also used veneers and plywood mainly for furniture. on average much larger mills use mainly plantation timber with around 90% of the plywood produced being for structural applications. Around 1914 plywood manufacture commenced in Woolloongabba. The Australian industry expanded around the country after the second World War to the stage where in 1960 there were 63 mills. 3 . thus making this city the logical base for the Plywood Association of Australia. Australian plywood manufacture commenced in Melbourne in 1911 but the two plants closed after a few years of operation. Around this time the local industry was under threat from imports. The selection of the marketing channels is also important for the growth of the organization. The different Plywood products have different categories of customers. We will practice the following marketing channel: Wholesaler & Distributor: These People will represent our product in their region. They will be the main contact point for the retailers and they will provide all services on behalf of our organization.friendly and cheap as compared to the other plastic products. State Transport MARKETING CHANNELS:- The marketing channels plays important role in the distribution of the products to reach the potential customers. The Plywood products like furniture generally popular among the middle class people of the regions. 4 . POTENTIAL CUSTOMERS ARE AS FOLOWS AS Furniture manufacturing company Real Estate Developers Retailers of the Plywood sheets Government institutions like Railway. MARKET POTENTIAL Plywood products always have its demand in the market. Industrial Merchants: The registration with the trading companies like India mart and TradeIndia will also be done as electronic channels are the most famous and cheapest way to gain customer. The products are eco. 3. we will be having Long Term Agreement with suppliers from those region so that we can produce best quality plywood. we are looking forward to cater the needs of those skilled and unskilled labor of our region. 5 .Haryana The factors influenced to choose the plant layout are as follows as 1. Availability of raw materials:- Hardwood and softwood is easily available in the region and the transportation cost is also less. Availability of the power and water supply: The power supply is from Haryana State Government and apart from that we will be installing Generator of any sort of emergency. Good transportation facilities:- The place is well connected to the National Highway and State Highway 4. Availability 0f skillful labour force:- Most of the plywood units are installed in other district of Haryana and due to that the skilled labour force migrates to those region. Eucalyptus and Poplar Core Veneer of the best quality is easily available in the Western Uttar Pradesh and Uttarakhand Region. Also 2. Plant location:- The plant is located at following address NARNAUL DIST – MahendraGarh STATE. pine. oak. softwoods. Hardwood plywood used for interior applications and in the construction of furniture usually is made with a urea-formaldehyde resin. the inter- mediate layers are known as the crossbands. The type of adhesive used to bond the layers of wood together depends on the specific application for the finished plywood. The face is the surface that is to be used or seen. or may be treated with various chemicals to improve the plywood's flame resistance or resistance to decay. The most common softwood used to make plywood in India is poplar. 6 . Some common hardwoods include eucalyptus. Such plywood is called overlaid plywood and is commonly used in the construction. Plywood may be made from hardwoods. although most softwood interior sheets are now made with the same phenol-formaldehyde resin used for exterior sheets. and agricultural industries. Raw Materials The outer layers of plywood are known respectively as the face. Some applications require plywood sheets that have a thin layer of plastic. transportation. Softwood plywood sheets designed for installation on the interior of a structure may use a blood protein or a soybean protein adhesive. The center layer is known as the core. metal. In plywood with five or more plies. Other plywood sheets may be coated with a liquid stain to give the surfaces a finished appearance. Softwood plywood sheets designed for installation on the exterior of a structure usually use a phenol-formaldehyde resin as an adhesive because of its excellent strength and resistance to moisture. or a combination of the two. Composite plywood is used where very thick sheets are needed. Composite plywood has a core made of particleboard or solid lumber pieces joined edge to edge. or resin-impregnated paper or fabric bonded to either the face or back (or both) to give the outer surface additional resistance to moisture and abrasion or to improve its paint-holding properties. and teak. It is finished with a plywood veneer face and back. maple. 7 .3 m) increments. Likewise the top and bottom crossbands must be equal. Type II (Interior).9 m) and 5 ft (1. Plywood Classification and Grading There are two broad classes of plywood. Their face veneers are virtually free of defects.5 m). The other class of plywood is known as hardwood and decorative. depending on the type of glue. Other common widths are 3 ft (0. Type I (Exterior). Exposure capability may be interior or exterior.4 m) to 12 ft (3.0 mm range. The most common size for plywood sheets used in building construction is 4 ft (1. Veneer grades may be N. Although the core.4 mm to 19.6 m) in 1 ft (0. and the face and back of a sheet of plywoodmay be made of different thickness veneers.2 m) wide by 8 ft (2. the face and back must be of equal thickness. For example. Special applications like boat building may require larger sheets. The inner plies of all construction and industrial plywood are made from grade C or D veneer. This means it has a C face with a D back. C. the crossbands. or D. N grade has very few surface defects. while D grade may have numerous knots and splits. Lengths vary from 6 ft (2. For example. the thickness of each must balance around the center. no matter what the rating. Plywood’s in this class are used primarily for their strength and are rated by their exposure capability and the grade of veneer used on the face and back. plywood used for subflooring in a house is rated "Interior C-D". Plywoods in this class are used primarily for their appearance and are graded in descending order of resistance to moisture as Technical (Exterior). and the glue is suitable for use in protected locations. B. each with its own grading system. Sizes Plywood sheets range in thickness from 06 mm to 30 mm. The most common thicknesses are in the 6. A. One class is known as construction and industrial. and Type III (Interior).4 m) long. Preparing the logs As logs are needed. are dragged to a loading area by wheeled vehicles called skidders. they are first soaked and then peeled into strips. they have been planted and grown in areas owned by the plywood company. The trimmed tree trunks. These areas are carefully managed to maximize tree growth and minimize damage from insects or fire.2 m by 2. or felled. The limbs are removed from the fallen trees with chain saws. In order to cut the blocks into strips of veneer. In most cases. This machine removes the bark. while the log is slowly rotated about its long axis. either with sharp-toothed grinding wheels or with jets of high-pressure water. The Manufacturing Process The trees used to make plywood are generally smaller in diameter than those used to make lumber.4 m) plywood sheets: The logs are first debarked and then cut into peeler blocks. where they are stacked in long piles known as log decks. 8 . they are picked up from the log decks by rubber-tired loaders and placed on 1a chain conveyor that brings them to the debarking machine. or logs. The logs are cut to length and are loaded on trucks for the trip to the plywood mill. Felling the trees Selected trees in an area are marked as being ready to be cut down. The felling may be done with gasoline-powered chain saws or with large hydraulic shears mounted on the front of wheeled vehicles called fellers. Here is a typical sequence of operations for processing trees into standard 4 ft by 8 ft (1. the next process involves cutting the veneer into usable widths.5 m) to 8 ft-6 in (2. the peeler blocks must be heated and soaked to soften the wood. the remaining piece of wood. is ejected from the lathe and a new peeler block is fed into place. The heated peeler blocks are then transported to the peeler lathe. and other factors. usually about 4 ft-6 in (1. As the lathe rotates the block rapidly about its long axis. a full-length knife blade peels a continuous sheet of veneer from the surface of the spinning block at a rate of 300-800 ft/min (90-240 m/min). optical scanners look for sections with unacceptable defects. leaving less than standard width pieces of veneer.4 m). known as the peeler core. for making standard 4 ft (1.2 m) wide plywood sheets. 9 .4 m) long sheets. where they are automatically aligned and fed into the lathe one at a time. The long sheet of veneer emerging from / the peeler lathe may be processed immediately. When the diameter of the block is reduced to about 3-4 in (230-305 mm). multiple-level trays or wound onto rolls. or it may be stored in long. In any case. Making the veneer Before the veneer can be cut. This process takes 12-40 hours depending on the type of wood. suitable for making standard 8 ft (2. The debarked logs are carried into the mill on a chain conveyor where a huge circular saw cuts them into sections about 8 ft-4 in (2. The blocks may be steamed or immersed in hot water.6 m) long. the diameter of the block. and these are clipped out. These log sections are known as peeler blocks. At the same time. they are stacked according to grade.3 m). The sorted sections are fed into a dryer to reduce their moisture content and allow them to shrink before they are glued together. heated air are blown across the surface of the pieces to speed the drying process. The wet strips of veneer are wound into a roll. . Underwidth sections have additional veneer spliced on with tape or glue to make pieces suitable for use in the interior layers where appearance and strength are less important. In some dryers. or it may be done automatically using optical scanners. This may be done manually. Once dried the veneer is graded and stacked. which will be trimmed and sanded before being stamped with its appropriate grade. 10 . Selected sections of veneer are glued together. while an optical scanner detects any unacceptable defects in the wood. As the sections of veneer emerge from the dryer. Those sections of veneer that will be installed crossways—the core in three-ply sheets. jets of high-velocity. or the crossbands in five-ply sheets—are cut into lengths of about 4 ft-3 in (1. A hot press is used to seal the veneer into one solid piece of plywood. Most plywood mills use a mechanical dryer in which the pieces move continuously through a heated chamber. The sections of veneer are then sorted and stacked according to grade. and the sheet is stacked with other sheets waiting to go into the press. When all the sheets are loaded. while at the same time heating them to a temperature of about 230-315° F (109. which applies a layer of glue to the upper surface. Intermediate grade sheets are manually spot sanded to clean up rough areas. the back veneer is laid flat and is run through a glue spreader. This may be done manually or semi- automatically with machines. Finally.2 m) wide belt sanders. After a final inspection. which trim them to their final width and length. and other factors.Forming the plywood sheets When the appropriate sections of veneer are assembled for a particular run of plywood. which cut shallow grooves in the face to give the plywood a textured appearance. FUTURE PLANNING FOR THE EXPANSION:- 11 .6-13.2° C). The pressure assures good contact between the layers of veneer. the face veneer is laid on top of the glued core.9-157. any remaining defects are repaired. and the heat causes the glue to cure properly for maximum strength. Some sheets are run through a set of circular saw blades. The rough sheets then pass through a set of saws. and the whole sheet is run through the glue spreader a second time. The short sections of core veneer are then laid crossways on top of the glued back. mill number. The glued sheets are loaded into a multiple-opening hot press. which sand both the face and back. presses can handle 20-40 sheets at a time. the press is opened and the sheets are unloaded. After a period of 2-7 minutes. the press squeezes them together under a pressure of about 110-200 psi (7.8 bar). grade. Sheets of the same grade-trademark are strapped together in stacks and moved to the warehouse to await shipment. Higher grade sheets pass through a set of 4 ft (1. In the simplest case of three-ply sheets. the process of laying up and gluing the pieces together begins. The finished sheets are stamped with a grade-trademark that gives the buyer information about the exposure rating. with each sheet loaded in a separate slot. These compressed layers are then oriented at right angles to each other. Oriented strand board is as strong as plywood and costs slightly less. To improve this figure. The strands are mixed with an adhesive and compressed into layers with the grain running in one direction. and are bonded together. In most cases. which is made by shredding the entire log into strands. One new product is called oriented strand board.Even though plywood makes fairly efficient use of trees—essentially taking them apart and putting them back together in a stronger. more usable configuration—there is still considerable waste inherent in the manufacturing process. several new products are under development. rather than peeling a veneer from the log and discarding the core. List of the machine to be used in the manufacturing process and their cost of purchase:- 12 . like plywood. only about 65-75% of the usable volume of wood in a tree is converted into plywood. Spindless Peeling Machine: This machine is used to peel the wood log and make core veneer which is then used for making plywood. 2.General Plywood Processing Machine 1. We will be using spindles peeling machine which consumes less electricity and produces more veneer. Roller Veneer Dryer: Veneer Dryer is used to dry the veneer so that it absorbs the glue in the next process well and also the moisture is removed from veneer to make the bonding better while manufacturing plywood 13 . Hydraulically operated steam/oil heated multi daylight Hot Press in upclosing frame. The main body is fabricated from M.S. Glue Spreader : 4. Plate and Hot Platens are also fabricated from solid plate as well as complete with Automatic Powerpack. steam connection pipes and other necessary parts and components. 14 .3. Hydraulic Hot Press Machine: 'BS' Make. Steam Boiler : 6. Chimney(30m) with ladder: v 15 .5. Heat Recovery unit (Air Pre-Heater): . 16 .7. A) OWN CAPITAL:- According to the rules set up by various financial institution 25% to 35% of the capital should be the own investment of the entrepreneur.75.NO RATE OF PARTICULARS AMOUNT INTEREST 17 . COST OF THE PROJECT SR.SOURCES OF FINANCE:- Supply of finance is very important factor in the establishment of an enterprise is old. Following are the certain sources of the scheme of the finance. B) TERM LOAN FROM THE COMMERCIAL BANKS: Loan will be applied to the bank once the license is issued C) TERM LOANS FROM THE NATIONAL SMALL INDUSTRIES CORPORATION:- NSIC provides loans at 8.00 MEANS OF FINANCE: SR.NO PARTICULARS AMOUNT 01 Land 02 Site development 03 Building 03 Plant and machinery 04 Furniture and Misc 1. Finance is the life line of the business.000.5% to small scale industries for the development of the working capital requirement. 06 Depreciation 06 Working capital (3months) TOTAL . Finance deals with the arrangements of the sufficient capital for the smooth run of the organization.00 05 Preliminary and preoperative exp. 30% of the project cost will be financed by the promoter himself. 01 NIL Promoters Capital .00 TOTAL FIXED CAPITAL: SR.NO PARTICULARS AMOUNT 01 Land .00 03 8.00 000. no Particulars Cost of the Amount items O1 Filling of the land .00 04 Furniture and Misc .00 (2 acre) 2. .00 TOTAL .5% NSICL TOTAL .00 02 Site development .00 03 Building . SITE DEVELOPMENT Sr.00 . No Particulars Price/Acre Amount 01 Land area .00 02 Fencing 18 .00 02 11% Bank Loan .00 1.00 05 Preliminary and preoperative exp.00 03 Plant and machinery . LAND: Sr.00 06 Depreciation . BUILDING Sr.000.00. no Particulars Quantity Amount Peeling Machine 2 50.000.50.00.00.00 Station Add Transportation 1.00 ladder 04 Heat Recovery unit (Air 01 1.000.03 Gardening 04 Gates Total .00 4.00 .00 3.25. PLANT AND MACHINERY: Sr.000.000.00 Collector 06 Pressure Reducing 01 2.00.00.000.00 Total .00 02 Show room 00 0.00 05 Store room 4.00 .000.00 Dryer 1 20.00 03 Chimney(30m) with 01 3.75.75.50.00. no Particulars Cost of the Amount items 01 Corporate office .000.00 1.000.00 03 Toilets 1.00 Pre-Heater) 05 Multi Cyclone Dust 01 1.000.000.000.00 Glue Mixer 2 Glue Spreader 4 01 Hydrualic Hot press 02 55.00 4.00 Installation 1.50.000.00 machine 02 Steam Boiler 01 13.000.80.75.00 19 . water . No Particulars Amount 01 Deposit for power .00 Tables 2 .00 05 Travelling .00 20 .00 Computer and accessories 1 .000.00 02 Loan application process fee .00 Sofa 1 .00 Almirah 8 .OPERATIVE EXPENSES:- Sr. No Type of assets Cost of assets Rate of Amount dep.00 5.00 6.00 02 Work shed ------. no Particulars Quantity Amount O1 Furniture Office chairs 8set . Total cost .00 10% .00 Racks 20 .FURNITURE AND MICELLANOUS ASSETS:- sr.A) Sr.DEPRECIATION (P.00 03 Deposit for internet . telephone . PRELIMINARY AND PRE. 00 Total .00 Total .00 04 Legal stamp duty and registration .00 06 Consultancy . 01 Plant and machinery .00 5.00 Fans 8 . 75.00.00 05 Selling and office 17000.00 .00 02 Salary and wages 1.00 expenses 04 Power and fuels .00 21 .20.00 00.No Particulars No.80.000.00 10% .000.000. of price /piece Cost /month Cost /year Tons/month (Rs) 01 Softwood 250 2000 5.00. no Particulars 1 month 3 month 01 Raw materials 9.00 02 Hardwood 50 3000 1.00 4.00 60.000.02 Furniture .000.09.000.00 .000.000 2.00 03 Adhesive 2 1.000.00 2.00 Total 9.80.00 27. RAW MATERIALS:- Sr.35.00 expenses Total .15.00 5% .06.04.500.000.00 21.00.000.00 WORKING CAPITAL REQUIREMENT:- Sr.45.500.00 03 Other manufacturing 12.00 36.00 Total .000.00 1.000.15.00 03 Building .00 1.00.40.00 28. 00 .00 .00 05 Supervisor 01 5.00 3.00 Total .00 .00 .00 48.16.00 Operator 07 Skilled labour 20 3200.400.00 02 Accountant 01 8.94.26. OTHER MANUFACTURING EXPENSES :- Sr.000.200.000. P.000.00 Electrician Total 31 .00 02 Packaging materials 2.00 3. P.000.500.00 00 54.000.2.00 4.00 08 Unskilled 110 3000 .000.000.00 48.00 06 Machine 10 4.000.000.M.00 .00 16.000.00 60.00 03 Repairing of the machines 4. 01 Fuels .00 22 .000.00 worker 09 Mechanic-cum 02 3.00 24.00 04 Chemist 01 6.000.No Particulars P.00 4.000.00 48. SALARY AND WAGES:- Sr.M.000 .80.00 1.000.800.000.00 1.20.A.60.000.A.800.00 03 Office staff 02 7.000.000.00 96.000.00 8.No Particulars P.no Name of the No per Salary/head Salaries/month Salaries/year post post 01 Manager 01 15.00 15.00 . POWER AND FUELS:- Sr. 01 Paints 4.00 02 Power .00 1. 000.00 Total 17.00 expenses (100%) Total 00 00 FIXED COST:- Sr.00 9.00 07 Selling and administrative .00 36.00 Total .00 04 Interest on term loans (80%) .00 02 Power and fuels(10%) .00 .000. selling .No Particulars P. P.00 expenses (90%) 06 Depreciation(100%) .00 03 Power and fuels(90%) 04 0ther manufacturing .000.A.M. Total 12. 01 Raw materials(100%) 02 Wages (80%) .000.000.000.00 . P.00 .M.No Particulars P. 01 Wages (20%) 00 .00 .00 .M.00 1.000. distribution 00 .00 48.A.00 23 .00 05 Office. DISTRIBUTION EXPENSES: Sr.A.00 . P.00 .00 5.00 03 Interest on w/c (20%) .No Particulars P.000. 01 Postage and stationeries 3.00 VARIABLE COST: Sr.00 06 Interest term loans (20%) .00 .00 03 Transportation 10.00 1.00 expense(100%) 05 Interest w/c loans (80%) 00 .000.20.00 02 Telephone bills/internets 4. OFFICE.44.SELLING.000.87. no Items No items Price Monthy Annually sales sold /item sales /month 01 6mm plywood sheets 3*6 21 .00 4*8 66 .00 .00 .00 0 TOTAL 165 00 .00 4*6 50 .00 .00 4*8 5 .00 .00 02 Salary and wages .00 .00 3*8 34 .00 .00 Total .00 .00 05 Repairing of machine .00 Furniture .00 TOTAL 207 .00 ESTIMATED SALE:- Sr.00 .00 02 8 mm plywood sheet 3*6 30 .00 3*8 44 .00 .00 03 Other manufacturing .00 06 Depreciation @10% 07 Plant and machineries .00 4*6 67 .00 expenses 04 Consumables . no Particulars 1 month 1 year 01 Raw materials 00 .COST OF THE PRODUCTION:- Sr.00 03 12 mm plywood sheet 24 .00 .00 .00 .00 .00 .00 . 00 .M P.00 3*8 33 .00 04 18 mm plywood sheet 3*6 25 . 01 Sales .5%(SIDC) .A.00 03 Gross .00 .00 .00 . selling.no Particulars P.00 02 Less Cost of production .00 3*8 66 .00 4*6 100 .00 TOTAL 300 .00 .00 .00 . .00 06 Net profit .00 .00 25 .00 @8.00 .00 .00 4*8 50 .00 TOTAL .00 distribution 05 Less Interest on loan @11% (Bank) .00 .00 .00 .00 .00 4*8 100 .00 PROFITABILITY:- Sr.00 4*6 50 .00 profit 04 Less Office.00 . 3*6 44 .00 . 308.00 B.E.P= X 100 CONTRIBUTION CONTRIBUTION=SALES-VARIABLE COST CONTRIBUTION= 18.284.P= _____________ X100 =32.00 26 . 90.BREAK EVEN POINT: Formula used FIXED COST B. 97.21% 58.E.