cd industry

8/7/2019 CD Industry

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COMPACT DISC

MANUFACTURING INDUSTRY

An Entrepreneurship Project

submitted in partial fulfillment of

the requirements for the

Degree of Bachelor of Technology

Under Bijupatnaik University of Technology

By

Bikas Chandra Biswal Regd. No.:0701223429(ECE)

Rajendra Kumar Sethi Regd. No.:0701223093(ECE)

Under the guidance of

Mr. RATIKANTA GHADEI.

Department of Electronics &

Telecommunication Engineering

Krupajal Engineering College

PRASANTI VIHAR, PUBASASAN, KAUSALYA GANGA,

BHUBANESWAR-751 002


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ABSTRACT

This business plan is to manufacturing compact disc of different

type .It is a Product Oriented firm which Manufactures Compact

Disc in the form of CD-R (Compact Disc Writeable) and CD-

RW (Compact Disc Re writeable). With two different storage

capacity 700MB and 128MB which are generally used in

various field such as audio video recording and data storing etc.

Our plan is to start our business with most of our local audio

companies, video companies and Software companies. So that

we can supply them with affordable price in comparisons to

other manufacturers due to reduction in transportation cost.

When we can able to grab a better market condition in localmarket we must tries to spread our business in global market.

We also planed to target most of the office stationary suppliers.


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ACKNOWLEDGEMENT

I express my deep sense of gratitude and appreciation to my

guide MR. RATIKANTA GHADEI for his constantsupervision, inspiration and encouragement right from

the beginning of the seminar report entitled

COMPACT DISC AND MANUFACTURING

INDUSTRY.

I am also grateful and indebted to MR. SWASTIK MISHRA

and MR. SIDHESWAR ROUTRAY Dept of electronics

& telecomm. Engineering for his help and advice in

completion of this seminar report.I express my hearty thanks to all the lectures of Electronics

& telecomm. Engineering Department for every

possible help during the preparation of my seminar.

I further take this opportunity to thanks all my classmates

for taking active participation during the preparation

of my seminar work with report so as to make it lively

and a great success.

BIKAS CHANDRA BISWAL

REGD NO-0701223429

RAJENDRA KUMAR SETHI

REGD NO-0701223093

BRANCH- EN & TC

TABLE OF CONTENTS


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Department of Electronics & Telecommunication Engineering ............................ 1

Krupajal Engineering College .................................................................................... 1

ABSTRACT ................................................................................................................... 2

ACKNOWLEDGEMENT .............................................................................................. i

I express my deep sense of gratitude and appreciation to my guide MR.

RATIKANTA GHADEI for his constant supervision, inspiration and

encouragement right from the beginning of the seminar report entitled .................i

COMPACT DISC AND MANUFACTURING INDUSTRY............................ i

I am also grateful and indebted to MR. SWASTIK MISHRA and MR.

SIDHESWAR ROUTRAY Dept of electronics & telecomm. Engineering for his

help and advice in completion of this seminar report............................................. i

I express my hearty thanks to all the lectures of Electronics & telecomm.

Engineering Department for every possible help during the preparation of my

seminar....................................................................................................................iI further take this opportunity to thanks all my classmates for taking active

participation during the preparation of my seminar work with report so as to

make it lively and a great success........................................................................... i

BIKAS CHANDRA BISWAL ..............................................................................i

REGD NO-0701223429 .......................................................................................... i

RAJENDRA KUMAR SETHI ..............................................................................i

REGD NO-0701223093 .......................................................................................... i

BRANCH- EN & TC ..............................................................................................i

TABLE OF CONTENTS ................................................................................................i

LIST OF FIGURES ...................................................................................................... iv

1. GENERAL INFORMATION .................................................................................... 5

2. DETAILS OF THE PROPOSED PROJECT ............................................................. 8

2.1 Land and Building: .............................................................................................12

2.2 Machineries / Equipments: .................................................................................12

2.3. Miscellaneous Fixed Assets: .............................................................................13

2.4. Preliminary and Pre Operative Expenses: .........................................................13

2.5 Working Capital: ................................................................................................14

3. MARKET POTENTIAL ..........................................................................................15

3.1. Present Demand and Supply of the Product Competition: ................................15

3.2 Target Clients: ....................................................................................................15

3.3 Marketing Strategy: ............................................................................................16

4.1 Technical Know How Availability: .................................................................17

4.2 Steps by Step Description: .................................................................................17

5. PRODUCTION SCHEDULE .................................................................................. 18

Number of Working Days per Annum: ....................................................................18

Number of Working Shifts: ...................................................................................... 18

5.2.1 Sales Revenue: ..........................................................................................18

5.2.2 Utilities: .....................................................................................................18

5.2.3 Salaries/Wages: .......................................................................................19

5.2.4 Repairs and Maintenance: .........................................................................195.2.5 Selling and Distribution Expenses: ...........................................................19


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5.2.6 Administrative Expenses: ..........................................................................19

5.2.7 Interest: .....................................................................................................20

5.2.8 Depreciation: ............................................................................................20

5.2.9 Misc. Expenses: ......................................................................................20

5.2.10 Rent: ......................................................................................................20

5.2.11 Total Cost of the Project: .......................................................................... 20Means of Finance: ................................................................................................21

6. PROFIBILTY PROJECTIONS ............................................................................... 22


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LIST OF FIGURES

Figure 1.1-Premastering.................................................................................................8

Figure 1.2-Mastering......................................................................................................9Figure 1.3- Electroplating..............................................................................................9

Figure 1.4- Pressing.....................................................................................................10

Figure 1.5- Metallization..............................................................................................10

Figure 1.6- Varnishing.................................................................................................11

Figure 1.7 Label Printing.............................................................................................11

Figure 1.8 Packaging....................................................................................................12


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ENTREPRENEURSHIP PROJECT

1. GENERAL INFORMATION

Name of the Entrepreneurs:

BIKAS CHANDRA BISWAL

RAJENDRA KUMAR SETHI

Proposed Project:

A compact disc, or CD, is an optical storage medium with digital data

recorded on it. The digital data can be in the form of audio, video or

computer information. When the CD is played, the information is read or

detected by a tightly focused light source called a laser (thus, the name

optical medium).The CD is plastid disc 1.2mm thick and 12 cm in

diameter, with a silver-colored surface that reflects laser light. The

maximum playing time for music recorded on compact disc is 74

minutes. Mechanically, the CD is less vulnerable than the analogue

record, but that doesnt mean that it must not be treated with care.

Major Product / Services:

Compact disc

Proposed Locations:

Bhubaneswar / Hyderabad / Bangalore/Mumbai

Type of Organization:

Hardware Development


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ENTREPRENUER PROFILE:

1. Name : Bikas Chandra Biswal

Educational Qualification:Bachelor of Technology

Technical Skills:C, C++ and VLSI

2. Name: Rajendra Kumar Sethi

Educational Qualification:Bachelor of Technology

Technical Skills:Embedded systems, C, C++,V.B.Net

TYPE OF THE PRODUCT / SERVICES:

1. Type of the Project :

Compact Disc Manufacturing

2. Product / Services Description :

It is a Product Oriented firm which Manufactures Compact Disc in the

form of CD-R (Compact Disc Writeable) and CD-RW (Compact Disc

Re writeable). With two different storage capacity 700MB and 128MB

which are generally used in various field such as audio video recording

and data storing etc.

3. Major Consumers :

Our plan is to start our business with most of our local audio companies,

video companies and Software companies. So that we can supply them

with affordable price in comparisons to other manufacturers due to

reduction in transportation cost. When we can able to grab a better market


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condition in local market we must tries to spread our business in global

market. We also planed to target most of the office stationary suppliers.

PROMOTERS:

1. Capital from reliable and Supportive Capital Ventures

2. The main Promoter of our project will be loans taken

from banks.

3. The company to whom our firm will collaborate will

produce audio CDs, video CDS, game CDs, and

software CDs etc


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2. DETAILS OF THE PROPOSED PROJECT

This business plan is to install a manufacturing plant for compact disk. In

such a location where we can easily get the raw materials and target

market. Our manufacturing process will go through the following

process.

Premastering

First, we ensure the CD-ROM content provided by our customers meets

the proper ISO standards when it is organized on the disc. This is an

essential step to guarantee quality for professionals who require precise,

high quality data reproduction that is backed by ISO certification.

Figure 1.1-Premastering

Mastering

Then we create a glass master covered with a photosensitive layer and

engrave all our customers information on it with a laser light. To help

fight against piracy on behalf of our customers, the plant engraves its

International Federation of the Phonographic Industry (IFPI) number on

every glass disc itproduces. Following that, a fine silver coating is

applied to the glass masters surface by a process known as vacuum

evaporation.


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Figure 1.2-Mastering

Electroplating

The glass master is then transformed into a mould which is used topress discs. This is achieved by adding a layer of nickel on the glass

master by means of electrolysis. The nickel layer is then separated from

the glass base to recover the negative of the CD. The result is what is

called the stamper. Other masters can be produced by repeating the

electrolysis phase.

Figure 1.3- Electroplating

Pressing

With the mould ready, CDs can now be replicated. Liquefied

polycarbonate is then injected into the mould and, after only a few

seconds of pressing, a compact disc containing all the data is quickly

created.


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Figure 1.4- Pressing

Metallization

In order for the CD to be readable, it must be covered with a micro thin

layer of aluminum which is vacuum laid. The aluminum surface acts as a

mirror to reflect the laser light back so information can be read.

Figure 1.5- Metallization

Varnishing

To protect the CD and its information from harm scratching, bending,

or dropping it the disc is covered with a layer of varnish. The lacquer


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envelops the aluminum and seals it from the elements. The disc is then

ready for printing.

Figure 1.6- Varnishing

Label Printing

The final touch comes with the printing of the label right on the disc,

either by a silk screen or offset process or with up to six colors. The result

is a clean, polished appearance.

Figure 1.7 Label Printing

Pckaging

The CD is automatically packaged and prepared for shipping. We are

committed to providing customers with the highest quality printing

services and the most complete selection of packaging solutions in the

industry. We know the importance of choosing packaging that has

maximum customer impact, and offer a variety of options from cost-saving automated packaging to custom-made solutions.


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ENTREPRENEURSHIP PROJECT10. Scanners 5 3,500 17,500

Total: 7,22,500

2.3. Miscellaneous Fixed Assets:

Serial No. Particular Requirement Rate (Rs.) Total Value

(Rs.)

1. Personal

Computers

10 32000 3,20,000

2. Documents

and

Stationeries

Paper, Office

Accessories etc

30000 30,000

3. Printers 4 2000 8,000

4. Furniture Sofa, Chair,

Table, etc

30,000

5. Phone and fax 2 10,000

Total 3,98,000

2.4. Preliminary and Pre Operative Expenses:

Serial

No.

Particulars Amount

(Rs.)

Remarks

1. Interest during

Implementation

64,000 If we take a loan of Rs 80,00,000

2. Establishments 15,00,000 For creating the Business Area

3. Start Up Expenses 20,15,000 For starting the Business

Total : 22,46,200


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2.5 Working Capital:

Serial

No.

Item Rs.

1. Raw Material 3,25,000

2. Salary 15,00,000

3. Interest on Loan 8,00,,000

4. Rent 7,50,000

Total : 29,60,200


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3. MARKET POTENTIAL

3.1. Present Demand and Supply of the Product Competition:

We have to make compact disc that will use by all the audio & video

companies & local softwares/hardwares vendors. This is going to help a

user in many ways. There are no further charges of this product.

The CD system technology has come a long way in the last few years,

and new applications for compact disc systems are being discovered

every day. The market has already seen the introduction of CD-ROMs,

CD-Videos and CD-Interactive. The latest product to attract consumer

attention is Kodak's Photo-CD, which can display photographs on

television and computer screens. These pictures can be edited or cropped

by the user, just like clip art images.

Our plan is to start our business with most of our local audio companies,video companies and Software companies. When we can able to grab a

better market condition in local market we must tries to spread our

business in global market. We also planed to target most of the office

stationary suppliers.

Hence we get the market of small businessmen to youngsters who are in

large numbers hence our business will do well during the start and

flourish afterwards.

3.2 Target Clients:

Our main target clients are sarthak music, Samrat cassettes, TP musics

,T-series & local software companies like-NTCS, 3M business solution


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private ltd. That includes around the 70% of the total population and

which is a large target section

3.3 Marketing Strategy:

The Marketing Strategy will be advertising the product in the media and

by companys representatives by visiting various target clients and by

making them aware of the features, application and the type of

technology used in product. Our main aim is to target all those above

music companies & software companies all over the country.


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4. MANUFACTURING PROCESS

4.1 Technical Know How Availability:

Books related to CD manufacturing process, Chemistry, Polymer

Science and Material Science. Different working platforms like

Windows, Linux etc and processing skills like premastering,

mastering, electroplating, varnishing, labeling for the enhancement of

the CD manufacturing technology and for development of the new

technology.

4.2 Steps by Step Description:

1) Study and analysis of whole project: - It includes knowing the full

manufacturing process of the project i.e. what the project means and

how to do the project.

2) Design of the Compact Disc includes these processes:-

Premastering.

Mastering

Electroplating

Pressing

Metallization

Varnishing

Label printing

Packaging


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5. PRODUCTION SCHEDULE

Number of Working Days per Annum:

The Industry will remain open for all weekdays except Sundays and

National holidays.

Number of Working Shifts:

Since it is a service and production firm it follows a shift system which

has working hours from 9:00am to 5:00 pm for 1st shift and from

10:00pm to 6:00am for the other.

5.2.1 Sales Revenue:

The sales revenue of the business depends on the number of clients it has

dealt with in the present year.

Year No of Items Quantity sold per

year

Unit Price

In Rupees

Total

Realization(Rs)

2007

700MB CD-R 40,00,000 3 1,20,00,000

700MB CD-RW 5,50,000 10 55,00,000

128MB CD-R 10,00,000 3 30,00,000

128MB CD-RW 1,50,000 10 15,00,000

Total: 2,20,00,000

5.2.2 Utilities:

SerialNo.

Particulars Expenditure(Rs.)

Remarks

1. Power/Electricity 1,50,000

2. Water 10,000

3. Miscellaneous 30,000

Total : 1,90,000


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ENTREPRENEURSHIP PROJECT5.2.3 Salaries/Wages:

Serial

No

Particulars Numb

ers

Wages/Salary per month

(Rs.)

Annual Expenses

(Rs.)

1.

2.

3.

Skilled

Semi-skilled

Unskilled

3

8

18

75,000

1,20,000

1,26,000

9,00,000

14,40,000

15,12,000

4. Office Staff 10 1,00,000 12,00,000

Total : 50,52,000

5.2.4 Repairs and Maintenance:

Repair and Maintenance charges are based upon the amount of work to be

put in by the system manager and team to get the assignment finished

correctly and completely.

5.2.5 Selling and Distribution Expenses:

Serial

No.

Particulars Amount

(Rs.)

Remarks

1. Publicity Expenses 1,00,000

2. Traveling 80,000

3. Commission 10,000

Total : 1,90,000

5.2.6 Administrative Expenses:

Serial

No.

Particulars Amount

(Rs.)

Remarks

1. Stationery\Printing 40,000

2. Post\Telephone 30,000

3. Entertainment 1,00,000


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Total : 1,70,000

5.2.7 Interest:

Year OutstandingLoan Amount

(Rs)

Interest Installment(Rs.) Balance(Rs.)

1 80,00,000 8,00,000 9,00,000 88,00,000

5.2.8 Depreciation:

Sr.No.

Type of Asset Cost of Asset

ExpectedLife

Depreciation TotalAmount(Rs.)

1. Computer 30,000 5 yrs 15,000 3,00,000

2. A.C. 20,000 5 yrs 5,000 25,000

Total 3,25,000

5.2.9 Misc. Expenses:

Sr.

No.

Description Cost

1. Furniture 40,000

2. Coffee Maker 5,000

3. A.C. 1,00,000

Total 1,45,000

5.2.10 Rent:

Sr.

No.

Item Rs.

1.

2.3.

4.

Building

ElectricityWater

Phone

6,00,000

1,50,00010,000

30,000

Total 7,90,000

5.2.11 Total Cost of the Project:


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Sr. No. Particulars Total Value(Rs.)

1.

2.

3.

Fixed Capital

(Total of item No.2.1,2.2,2.3)

Working Capital margin

(Total of item No. 2.5)Preliminary & Pre-operative

Expenses

(Total of item No. 2.4)

23,80,500

29,60,200

22,46,200

Total 75,86,900

Means of Finance:

Sr. No. Particulars Amount(Rs.) Remarks

1. Own Investment 30,00,000

2. Term Loan 80,00,000

3. Working Capital Loan 6,86,900

4. Any Other Source

Total: 1,16,86,900


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6. PROFIBILTY PROJECTIONS

Serial

No.

Particulars Amount (Rs.)

1. Sale Realization 2,20,00,000

2. Cost of Servicing/Manufacturing

i. Utilities 1,90,000

ii. Selling and Distribution 1,90,000

iii. Salary \ wages 50,52,000

iv. Administrative Expenses 1,70,000

v. Interest 8,00,000

vi Rent 7,90,000

vii Depreciation 3,25,000

viii Misc. expenses 1,45,000

ix Annual working capital 30,00,000

Total 1,06,62,000

3. Gross Profit 1,13,38,000

4. Income tax 33,08,000

5. Net Profit 80,30,000