SCHEME ON CORRUGATED
BOARD AND BOXES
INTRODUCTION:
This project
profile in detail foresees setting up of unit to produce corrugated
board and boxes.
Paper and
paper products are versatile industrial raw materials with
a wide variety of application in this era and due to shortage
of softwood, wooden packing cases are more and more replaced
with corrugated board- boxes and cartons. As more and more
materials are coming in paper packing, availability of raw
materials are also on the increase. Thus recycling of waste
paper is in demand, which can be used to produce products
like paperboards, binding sheets, sweet box cartons and other
packing cartons.
80% of industrial
packaging is done by carton boxes due to effective cushioning,
light weight, easy to fabricate, easy for storing, easy for
disposal, no strapping necessary, printing and advertising
advantages, must in export market, recyclable etc.
MARKET:
Corrugated
board boxes are used in different area of packing in goods
such as: Breweries, Glass wares, Cigarettes, Pharmaceuticals,
Biscuits, Milk & Milk products, Soaps, Cosmetics, Tea
& Coffee, Hosiery, shoe & footwear industry, toys
etc.,
BASIS AND PRESUMPTIONS:
1.
Single shift of 8 hours a day, 25 days a month and 300 days
in a year is presumed. Efficient machines and workers are
also presumed.
2.
Minimum 2 year period is considered for achieving full capacity
utilization
3.
Labour rates are as per the prevailing rates.
4.
An average interest rate of 14% is considered.
5.
The estimates are drawn for a production capacity generally
considered techno-economically viable for model type of manufacturing
activity.
6.
The information supplied is based on a standard type of manufacturing
activity viable for model type of manufacturing activity.
7.
The information supplied is based on a standard type of manufacturing
activity utilizing conventional techniques of production at
optimum level of performance.
8.
Costs in machinery and equipment, raw materials and the selling
prices of the finished products etc., are generally prevailing
at the time of preparation of the project profiles and may
vary depending upon various factors.
9.
Whereas some names of manufacturers, suppliers of machinery
and equipment, raw materials etc. are indicated at the end
of the profile, those are by no means exclusive or exhaustive.
IMPLEMENTATION SCHEDULE:
Normally
eighteen months are required for the complete implementation
of the project, including machinery erection, raw materials
procurement etc.
PRODUCTION DETAIL AND PROCESS TECHNIQUES:
Corrugated Board:
Corrugated
board is made with a corrugated sheet of paper attached to
the facing of flat paper, usually kraft by adhesives. In our
country, it is mostly produced over a single facer machine
here two paper reels are run together, one layer of paper
becomes corrugated after passing through the heated rolls
and the other is brought into contact with it after the former
having glued at the tips. Thus both get pasted together and
are wound in rolls. The resulting roll is now known as single
face/ corrugated roll/board. By cutting this roll with board
cutter and then gluing the corrugated side by a pasting machine
and placing 3rd ply of paper over it double faced or 3-ply
corrugated board is produced, this board is kept under pressure
in a sheet pressing machines for some time for setting of
the wet glued sheets. Similarly board can be pasted to form
thicker boards i.e.; 5-ply, 7-ply and 9-ply etc.
Corrugated Board Boxes:
The process
of manufacturing boxes or containers constitutes five operations.
i) Slitting
and Longitudinal Cutting
ii) Creasing
iii) Slotting
iv) Flap
or Corner Cutting
v) Stitching
After passing
the sheet through these operations, a box or container is
ready, slitting and creasing operations can simultaneously
by carried over a 4 bar rotary cutting and creasing machine.
The trimmed and creased sheet is slotted and flap cut on an
Eccentric Slotted Machine. Finally, it is either stitched
over a stitching machine or glued/taped manually.
For partition boxes the half slotted boards are used which
can conveniently be produced over a partition spotter machines.
III. LAND AND BUILDING
| 1 |
Land |
2 lakhs |
| 2 |
Building - - Office - 200 sq. ft.
Go-down - 2000 sq. ft.
Production Area - 2800 sq. ft.
Total - 5000 sq. ft. |
|
| |
|
| |
|
| |
8 lakhs |
| |
Total |
10 lakhs |
IV. PLANT AND MACHINERY
1 |
Single face paper corrugation Machine |
4 lakhs |
2 |
Two Board Cutters with one reel stand light model |
1 lakhs |
3 |
One Sheet Pasting Machine |
0.75 lakhs |
4 |
One sheet pressing |
1 lakhs |
5 |
One 4-Bar Rotary Cutting & Creasing |
2 lakhs |
6 |
One Eccentric Slotted |
2 lakhs |
7 |
Two stitching machines
i) One 36” arm angular head
ii) One 48” arm, straight head |
|
|
0.55 lakhs |
|
.50 lakhs |
|
Total |
11.8 lakhs |
|
Packing, forwarding, excise, insurance, sales-tax, freight
etc. |
1.23 lakhs |
|
Total |
13.03 lakhs |
|
Office furniture |
0.5 lakhs |
|
Erection and electrification |
1.2 lakhs |
|
Total |
14.73 lakhs |
A. RAW MATERIALS (Monthly)
1 |
Kraft paper Rs.40 /- per kg. |
50 Tons |
20.00 Lakhs |
2 |
Glue (Starch) |
4 Tons |
1.20 Lakhs |
3 |
Stitching wire |
330 Kg. |
0.17 Lakhs |
|
Total
|
21.37 Lakhs |
B. STAFF AND LABOUR (Monthly)
1 |
Manager |
1 |
5,000 |
2 |
Accountant cum Typist |
1 |
3,000 |
3 |
Skilled Worker |
6 |
15,000 |
4 |
Semiskilled worker |
5 |
10,000 |
5 |
Unskilled worker |
4 |
6,000 |
6 |
Watchman cum Peon |
2 |
3,000 |
|
Total |
42,000 |
|
Add perks 20% |
|
8,000 |
|
Total |
50,000 |
|
Electricity |
|
8,000 |
|
Water |
|
2,000 |
|
Fire Wood |
|
1,300 |
|
Total |
9,500 |
C. OTHER EXPENDITURE
1 |
Postage and Stationery |
2,000 |
2 |
Telephone |
3,000 |
3 |
Traveling |
5,000 |
4 |
Transport |
7,500 |
5 |
Insurance and Taxes |
2,000 |
6 |
Repair and Maintenance |
5,000 |
7 |
Misc. |
1,500 |
|
Total |
26,000 |
|
Total Working Capital for a month
A+B+C+D |
22,22,500 |
|
For 3 Months |
66,67,500 |
TOTAL INVESTMENT
| Land and Building |
10.0 Lks |
| Plant and Machinery |
14.73 Lks |
| Working Capital |
66.68 Lks |
| Total |
91.41 Lks |
COST OF PRODUCTION AND PROFITABILITY (Annual)
1 |
Total expenses for one |
266.7lakhs |
2 |
Interest on fixed capital (13%) |
3.125 lakhs |
3 |
Interest on working capital (15%) |
10.002 lakhs |
4 |
Depreciation 10% |
2.10 lakhs |
|
Total |
281.925 lakhs |
SALES REVENUE (Annual)
By sale 600
MTs of corrugated boxes @ Rs.50 /- per kg. 300 lakhs
Gross Profit
= 300-282 = 18lakhs
% Profit
on investment =
18 x 100 / 91.41
= 19.69
%
BREAK EVEN ANALYSIS:
Fixed cost
per annum
1. Interest
on capital investment - ---------3.125
2. Depreciation
-------------------------- 2.10
3. 40%
of salaries and wages ------------ 20000
4. 40%
of other expenses --------------- 10400
Total
-------------------------------------------------552900
B.E.P = Fixed Cost x 100 / Fixed Cost + Profit
= 552900
* 100 / 552900 + 1800000
= 23.50
%
ADDRESSES
OF MACHINERY MANUFACTURERS
1. M/s.. Shree Krishna Engineering
Works
Kinkhabwala
Wadi Sahara Darwaja, Surat – 395 003
2. M/s. Anil & Co.
68 N.G.O.’s
Colony Rajendranagar, Mysore
3. M/s. Indo-Europa Trading Co. (P)
Ltd.
Kubera Building,21/10
Sunkurama
Street, Chennai - 600001
4. M/s. Natraj Machinery Pvt. Ltd.
66 Sector –
27 C, Faridabad
ADDRESSES
OF RAW MATERIAL SUPPLIERS
1. M/s. Industrial
Chemicals &
Adhesives
Amar Hills, Saki Vihar Road
Powal,
Mumbai - 400072
2. M/s. Vijay
Industrial Adhesives
453,
GIDC Estate, Makarpura
Vadodara
390 010
3. M/s. Corn
Products Co. (India) Pvt. Ltd.
Shree
Niwas House, Hazarimal Somari Marg,
P.O.
Box No.994, Mumbai 400 001
4. M/s. Synthetic
Glue & Chemical Industries
21
Goneka Lane, Calcutta-7
5. M/s. Anoopam
Adhesives 159,
Vithal
Udyognagar
Vallabh
Vidyanagar 388 120
6. M/s. Ad
hesives & Chemicals
Arcot
Road, Porur Madras – 602 104
7. M/s. Gold
Adhesives Industries
Compound
Hemansuray Road,
Malad
(West) Mumbai 400 064
8. M/s. Vijay
Adhesives Industries
6
Friends Colony, G.T. Road
Shahdara
Delhi - 110032
9. M/s. Synthetic
Glue Chemicals Ltd.
D-104
Industrial Area
Bulandeshahr
Road , Ghaziabad
STITCHING
WIRE MANUFACTURERS
1. M/s. Pearls
Products
Amar
Hill, Saki Vihar Road
Powal,
Mumbai-400 072
2. M/s. Universal
Wire
Manufacturing
Co.
61/63
Jalan Wadal, Gokhle
Road
(South), Dadar
Mumbai-400
028
3 . M/s. Hindustan
Wire Industrie
10/11
Ramruddin Industrial Estt.
Kurla
Andheri Road
Mumbai-400
072
4. M/s. Variety
Traders
10/14
Janjikar Street
Steel
House
Mumbai-400
003
5. M/s. Mehta
Brother
44
Undria Street Mumbai-9
6. M/s. International
Wire Industries
Patwa
Chambers, 5th Floor Room No.55,
Clive
Road Opp. Masjid Railway Station
Mumbai-8
7. M/s. J.R.
Desai & Co.
71-73
Chakla, Mumbai-3
8. M/s.
Renown Steel
Sales
Corporation Steel Chambers
Branch
St., Mumbai-9
9. M/s. Saif
Steel Traders
Steeel
House, 10/14
Janjikar
Street Mumbai-1
10. Standard Trader (India)
202
Himalaya House,
Palton
Road Mumbai-1
11. M/s. United Export
Trading Co.
512
Loha Bhawan, P.O. Mello Road Mumbai
LIST
OF PAPER MANUFACTURERS INDIA
1. M/s. Titaghur
Paper Mills Co. Ltd., Chartered Bank Bldg., Calcutta
2. M/s. India
Paper Pulp Co. Ltd., 8 Clive Row, Calcutta
3. M/s. Bengal
Paper Mills Co., 14 Netaji Subhash Marg, Calcutta
4. M/s. Star
Paper Mills Ltd., Brabourne Road, Calcutta
5. M/s. Rohtas
Industries Ltd., Dalmianagar
6. M/s. Oriented
Paper Mills Ltd., Birla Building, 9/1 RN Mukherjee Road, Calcutta
7. M/s. Ashoka
Paper Mills Ltd., 8 Russel Street, Calcutta
8. M/s. Straw
Products Ltd., (J.K.) Nehru House, 4-B, S. Zafar Marg, New
Delhi
9. M/s. Ballarpur
Industries Ltd., (Shree Gopal Division), Thaper Hose, 124
Janpath, New Delhi
10. M/s. Orient Paper
Mills Ltd. (Amlai, Bhopal) Birla Bldg., 9/7 R.N. Mukherjee
Road,
Calcutta
11. M/s. Rohit Pulp &
Paper Mills Ltd., Rohit Chambers, Ghoga Street, Mumbai-400
001
12. M/s. Paper & Pulp
Conversions Ltd., 1183 Shivajinagar, Fargusson College Road,
Poona
13. M/s. Laxmi Board &
Paper Mills Pvt. Ltd., 23 Raman Street, 3rd Floor, Mumbai
14. M/s. Sirpur Paper,
Sirpur, Kaghaznagar
15. M/s. Andhra Pradesh
Pulp & Paper Mills Ltd., Rajamundry-1
16. M/s. West Coast Paper
Mill Ltd., Sreenivas House, Dr. Somani Marg, Fort, Mumbai
17. M/s. Mysore Paper
Mills Ltd., Bhadravati
18. M/s. Modhya National
Paper Mills Ltd., 7, Museum Road, Bangalore
19. M/s. Punalur Mills
Ltd., Punalur, Travancore
20. M/s. Sheshasye Paper
& Boards Ltd., p.O. Cauvery (Salem) Erode
21. M/s. Sun Paper Mills
Co. Ltd., Post Bag No.2, Cheranmahadevi, Tirnelveli Distt.
22. M/s. Tribeni Tissu
Ltd., 3, Middleton Street, Calcutta
23. M/s. Upper India Couper
Paper Mills Ltd., Masjid Both, Lucknow
24. M/s. Chemopulp Tissues,
A-4, Sect.CX II Meerut Road, Ghaziabad
25. M/s. Swatantra Bharat
Paper Mills, L5/7, D.B. Gupta Road, New Delhi
27. M/s. Central Pulp
Mills Co., Fort Sonagath, Dist.
28. M/s. Deccan Paper
Mills Co. Ltd., Commonwealth Bldg., Poona
29. M/s. Amravathi Shri
Venkatesh Paper Mills Ltd., P.O. Udurmalpeth, Madathukula,
Tamil
Nadu .
30. M/s. Asspcoated Pulp
& Paper Mills Ltd., B, Jadav Chambers, 2nd Floor, Ashram
202
Himalaya House, Palton Road
31. M/s. Shamli Paper
Mills Ltd., Shamli (U.P.)
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