Training calendar of Autonomous bodies

PAPER CUP

I. PRODUCT AND ITS USES

This project profile envisages the use of drinking Tea and Cool Drinks. The paper cup finds extensive use in railways, Hotels, household appliances, domestic applications. The product ranges from 150 ml to 300 ml, this manufacturing activity may well be set-up as small-scale units.
As there is a good production of instead of plastic cups, weight less as well as easy to carry railway Tea vendors, no environment pollution, increase the demand of paper cups, user customer are to be encouraged in the modern days.

MARKET:

Because the paper cup industry is in a boom, the requirement of drinking items like Tea, coffee, Cool Drinks for railways, Hotels, household appliances, domestic applications as well as for replacement of plastic cups, Glass items. There is a tremendous requirement of day-to-day life.

II. MARKET POTENTIAL

III. PRODUCTION TARGETS (Per Annum)

Quantity – 56,43,000 Nos
Value – Rs. 29,18,000

IV. BASIS & PRESUMPTIONS

        1.         Single shift of 8 hours a day, 25 days a month and 300 days in an year is presumed. Efficient machines and                     workers are also presumed.
        2.         Minimum 6 month period is considered for achieving full capacity utilization
        3.         Labour rates are as per the prevailing rates.
        4.         An average interest rate of 15% 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 utilising conventional techniques                     of production at optimum level of performance.
        8.         Costs in respect of 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.

V. IMPLEMENTATION SCHEDULE

Normally six months are required for the complete implementation of the project, including machinery erection, raw materials procurement etc.

VI. PRODUCTION DETAILS AND PROCESS OF MANUFACTURE

The process of manufacture consists of the following operations.

The process of manufacturing Poly coated paper purchased from market then cut in the required sizes, fabricate outer shell then put in the bottom mould pressed and pasting and keep it in the final paper cup mould. After making the cup checked random pieces for customer requirement. Then packing by plastic cover in 100 paper cups in a set.

VII. LAND & BUILDING

        Land 250 sq.m.                                 }
                                                                 } Rented Rs. 5,000 p.m.
        Building 150 ”                                   }

VIII. MACHINERY & EQIUPMENT

Sl.No.	Description	No.	Rs.
1	Full Automatic Operation of Paper cup Machine and other assembly	1	8,50,000
2	Dyes and Moulds	L.S.	50,000
3	Office equipments and furniture	-	50,000
4	Erection and electrification 10% of the cost of machinery	-	10,000
	Total		9,60,000
	Pre – operative expenses		10,000
	Total		9,70,000

IX. STAFF AND LABOUR (Per Month)

Sl.No.	Description	Nos.	Salary (Rs.)
1	Manager	1	5,000
2	Production Supervisor	1	3,000
3	Accountant-cum-storekeeper	1	2,500
4	Watchman-cum-peon	1	1,500
5	Skilled Workers	2	5,000
6	Unskilled Workers	6	10,800
	Total		27,800
	Perquisites 15%		4,170
	Total		31,970
	Say		32,000

X. RAW MATERIALS (Per Month)

1	Special type of paper (Poly coated paper) 2 Tones @ Rs.6, 000/-		1,20,000
2	Printing chemicals and Dyes	L.S.	5,000
3	Packing Material	L.S.	5,000
	Total		1,30,000

XI. UTILITIES (Per Month)

1	Power 3000 units @ Rs.3.80/-	11,400
2	Water	300
	Total	11,700

XII. OTHER EXPENSES (Per Month)

1	Postage and Stationer	500
2	Telephone	500
3	Consumable Stores	1,500
4	Repair and Maintenance	500
5	Transport Charges	1,000
6	Insurance	500
7	Misc. Expence	500
	Total	5,000

XIII. WORKING CAPITAL FOR THREE MONTHS

1	Salary & Wages	32,100 x 3	96,000
2	Raw Materials	1,30,000 x 3	3,90,000
3	Utilities	11,700 x 3	35,100
4	Other expenses	5,000 x 3	15,000
	Total	1,78,700	5,36,100

XIV. TOTAL CAPITAL INVESTMENT

1	Fixed capital	9,60,000
2	Working Capital	5,36,100
	Total	14,96,100

MACHINERY UTILIZATION

The whole operation of Tea cup and Cool Drink Cups making process is involved simultaneously. So the machine utilization has been taken 75% per day on single shift.

XV. COST OF PRODUCTION (Per Annum)

1	Total Recurring Expenditure	21,44,400
2	Depreciation on machinery @ 10%on 8,50,000	85,000
3	Depreciation on Moulds/Dies @ 25% on 65,000	12,500
4	Depreciation on Office Equipment @ 20% on 50,000	10,000
5	Interest on total capital @ 15% on14, 96, 100	2,24,400
	Total	24,76,300

XVI. TOTAL SALES (Per Annum)

         Annual production of paper cups 150 ml (Tea cup)
         300 ml (cool Drink cup) Saleable materials               59,40,000 Nos
         After allowing 5% rejection 2,97,000 Nos
                                                                                        56,43,000 Nos

XVII. PROFITABILITY (Per Annum)

Profit 27,00,000 – 24,64,350

= 2,35,650

Net Profit Ratio : Net profit x 100 / Turn over

= 2,35,650 x 100 / 27,00,000

= 8.92%

Rate of Return: Net profit x 100 / Total Investment

= 2,35,650 x 100 / 8,18,900

= 28.78%

XVII. FIXED COST

        Depreciation of Machinery                28,500/-
        Interest on total investment                98,250/-
        Rent                                                 48,000/-
        40% on salary and wages                 1,78,100/-
        40% of Other expenditure                36,000/-
                                                                3,88,850/-

B.E.P. Fixed Cost x 100 / Fixed Cost + Profit

= 3,88,850 x 100 / 3,88,850+ 2,35,650

3,88,850 x 100 / 6,24,500

= 57.37%

XIX. NAMES AND ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

        1.      M/s. J.K.Enterprises,
                62/173, Thiruvalluvar salai,
                Alwarpet, Chennai.

        2.      M/s. Jayveer Traders,
                171-D, Raj Building, Thoddarayan koil street,
                Kattoor, Coimbatore, Tamil nadu.

        3.     M/s. Rockford Business Links,
                K-120/6, Bougain villa,
                Anna nagar East,
                Chennai.

XX. NAMES AND ADDRESSES OF RAW MATERIAL SUPPLIERS

        1.     M/s. Jagdish Fine Arts,
                4/687/A, Husain Colony,
                Sivakasi, Tamil Nadu.

        2.     M/s. Vidya Laminators Private Limited,
                112/236, Swaroop Nagar,
                Kanpur, Uttar Pradesh.

        3.     M/s. Lampack Paper Products,
                A-1, Industrial Estate,
                Visakapatnam, Andrapradesh.

        4.     M/s. Kamakshi Lamipack private Limited,
                101, Sidco Aiema Tower,
                Ist Main Road, Industrial Estate,
                Ambattur, Chennai.