|
PRODUCT CODE : 94326 and 94389
QUALITY AND STANDARDS : As per Customer Specification
INTRODUCTION
Mankind has a natural liking and inclination towards clay made utensils/crockery. Though a number of substitute items appeared in the market ultimately the clay crockery has sustained. The fancy items of bone china like tableware, crockery decorative items, lamp shades etc. s finding a good domestic as well as export market.
MARKET POTENTIAL
The decorative items made of bone china are elegant for while there is a customer preference. The demand of bone china crockery and decorative item in urban areas is gradually increasing. There is a good scope of export to Gulf countries.
BASIS AND PRESUMPTIONS
The unit will run on single shift basis in 300 working days in a year. There will be a 8 hours shift in a day. Furnace will work on three shifts basis.
Full production capacity will be achieved in 3 years.
Wages are taken as per the minimum wages of the Government.
Rate of interest on borrowings-14%
Life of plant and machinery-10 years.
Life of furnace – 5 years.
Cost of plant and machinery as per latest quotations.
IMPLEMENTATION SCHEDULE
Sl.No. Activity Period
(in months)
1. Possession of land 2
2. Construction of building 5
3. Purchase of machinery 8
4. Installation of machinery 12
5. Trial production 14
TECHNICAL ASPECTS
Process of Manufacture
China clay powder, calcined quartz powder, potash feldspar, bone ash and other raw materials are weighed proportionately and fed in to ball mill for fine grinding. This mixture is ground to 300 mesh and sieved after passing through magnetic separator. The slurry is placed in agitator. This slurry is again pumped into filter press, cake received from filter press is mixed with water and electrolyte to make casting slip. Now desired items are cast in Plaster of Paris moulds. Articles are taken out from moulds and dried. These articles are finished. After finishing and drying articles are biscuit fired. Articles are glazed by dipping or spraying and again after drying these articles are gloss fired. At last ready articles are decorated by transfer papers, ceramic colour or gold. These decorated articles are fired at 650°C in electrical furnace. Thus ready articles are sorted and packed for dispatch.
Quality Control and Standards
As per customer’s specification.
Production Capacity (per annum)
Bone China Crockery and Art ware
Quantity: 130 MT
Value : Rs. 94,50,000
Motive Power 48 H.P.
Pollution Control
Bone China unit has to take no objection certificate from the State Pollution Control Board as per rule.
FINANCIAL ASPECTS
A. Fixed Capital
(i) Land and Building (Rs.)
Land 2000 sq. mtr. @ Rs. 550 Sq. mtr. 11,00,000
Building
Work shed 500 sq. Mtr. @ Rs. 1,550 sq. Mtr. 7,75,000
Office Store 100 sq. mtr. @ @ Rs. 1,550 sq. mtr. 1,55,000
Total 20,30,000
(ii) Machinery and Equipments
Particulars Quantity Value
(Nos.) (Rs.)
Ball mill 5’ x 5.1/2’ with motor and
other accessories 3 64,000
Ball mill 3’ x 3’ with 7 HP motor
and other accessories 1 32,000
Blunger 10’ with 5 HP motor 1 54,000
Agitator with 3 HP motor 1 26,500
Vibrating screen with magnetic separator 2 54,000
Filter press 44” dia 30 plates 1 63,000
De-airing pug mills with 5 HP motor 1 64,000
Saggar press hand operated 1 17,000
Pot mills 2 HP motor 1 5,500
Shuttle kiln 6 Cubic meter 2 17,00,000
Muffle electric furnace 1 3,20,000
Installation, electrification expenditure L.S. 2,40,000
Plaster of Paris moulds L.S. 40,000
Rack, panels etc. L.S. 16,000
Testing equipments L.S. 6,000
Office furniture L.S. 40,000
Total 27,42,000
(iii) Pre-operative Expenses Rs. 22,000
Total Fixed Capital (Rs.)
Land 11,00,000
Building 9,30,000
Plant and Machinery 27,42,000
Preliminary Expenses 22,000
Total 47,94,000
A. Working Capital (per month)
(i) Salary and Wages
Particulars Nos. Salary Total
(Rs.) (Rs.)
Manager 1 6,500 6,500
Production Manager 1 5,500 5,500
Supervisors 3 3,500 10,500
Accountant/Clerk 1 3,000 3,000
Firemen 4 3,000 12,000
Moulkders 2 2,800 5,600
Skilled Worker 25 2,200 55,000
Un-skilled Workers 15 1,800 27,000
Decorators 2 2,000 4,000
Peons 2 1,800 3,600
Electrician 1 2,000 2,000
Total 1,34,700
Add perquisites @ 15% 20,205
Total 1,54,905
Or Say 1,54,900
(ii) Raw Materials
Particulars Quantity Rate Cost
(Rs.) (Rs.)
Bone ash 9 MT 11,200 1,00,800
China clay 2.4 MT 2,650 6,360
Felspar 6.1 MT 1,000 6,100
Frit 1 MT 17,000 17,000
Plaster of Paris 2 MT 2,100 4,200
Fire clay 3.0 MT 1,575 4,725
Silimanite 0.18 MT 3,700 666
Decoration paper L.S. 10,000 10,000
Packing material L.S. 10,000 10,000
Other Contingent expenses L.S. 6,500 6,500
Total 1,66,351
Or Say 1,66,400
(iii) Utilities (Rs.)
Power 48 HP 15,000
Diesel L.D.O. 12 KL 1,92,000
@ Rs. 16,000 per K.L.
Total 2.07,000
(iv) Other Contingent Expenses (Rs.)
Postage and Stationery 1,800
Advertisement and publicity 1,200
Insurance 2,800
Telephone Bills 2,000
Consumables 1,200
Repair and Maintenance 1,200
Miscellaneous Expenses 1,500
Total 11,700
(iv) Total Working Capital (per month) (Rs.)
Raw Materials 1,66,400
Salaries and Wages 1,54,900
Utilities 2,07,000
Other Contingent Expenses 11,700
Total 5,40,000
Working Capital for 3 months
5,40,000 x 3) 16,20,000
C. Total Capital Investment
Fixed Capital Rs. 47,94,000
Working Capital for 3 months Rs. 16,20,000
Total Rs. 64,14,000
FINANCIAL ANALYSIS
(1) Cost of Production (per annum) (Rs.)
Total Recurring Cost 64,80,000
Depreciation on Building @ 5% 46,500
Depreciation on furnace @ 20% 4,04,000
Depreciation on Plant and Machinery @ 10% 38,600
Depreciation on Furniture and Fixtures @ 20% 19,200
Interest on Total Capital investment @14% 8,97,960
Total 78,86,260
(2) Turnover (per annum)
Item Quantity Rate Value
(Tonnes) (Rs.)
Bone China Waxes
and Art ware
Grade A 50 M.T. 85,000 42,50,000
Grade B 80 M.T. 65,000 52,00,000
Total 94,50,000
(3) Net Profit (per annum)
= Turnover – Cost of Production
= Rs. 94,50,000 – 78,86,260
=Rs. 15,63,740
(4) Net Profit Ration
= Net Profit per annum x 100
Turn Over per annum
= 15,63,740
94,50,000 x 100
= 16.55%
(5) Rate of Return
= Net Profit per annum x 100
Total capital investment
= 15,63,740 x 100
64,14,000
= 24.38%
(6) Break even Point
Fixed Cost (Rs.)
1. Depreciation on Building 46,500
2. Depreciation on Plant and Machinery
and Furnace 4,42,600
3. Depreciation on Furniture and Fixture 19,200
4. Interest on Borrowings @ 14% 8,97,960
5. 40% of Salary and Wages 7,43,520
6. 40% of other Contingent Expenses 42,720
7. Insurance 33,600
Total 22,26,100
B.E.P.
= Fixed Cost x 100
Fixed Cost + Profit
= 22,26,100 x 100
22,26,100 + 15,63,740
= 22,26,100 x 100
37,89,840
= 58.74% |
