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ROTOGRAVURE PRINTED FILM

PRODUCT CODE : 76559

QUALITY AND STANDARDS : As per customers specifications

PRODUCTION CAPACITY : Printed film 60 MT

Printing Job Work 60 MT

Value : Rs. 1,05,00,000/-

MONTH AND YEAR : May, 2014

OF PREPARATION

PREPARED BY : Sh. Brajendra Kumar

Assistant Director (Chemical)

1. INTRODUCTION Rotogravure printing is widely used for printing on packaging items like

polythene packets, bread wrappers soap wrappers mil pouches and other flexible

packaging materials. The use of such packaging items is steadily increasing hence

the importance of rotogravure printing is constantly increasing.

2. MARKET POTENTIAL Use of printed wrappers etc. is a widely accepted mode of packaging. The

market potentiality of these items is quite good. With the increase in the use of

plastic/polythene items for packaging of different consumer products like soap,

bread, tea, edible oils, mils, pan masala, snacks, etc. this mode of printing has

acquired a very good acceptability due to better get-up quicker production and cost

benefit.

3. BASIS AND PRESUMPTIONS The profile is drawn on the basis of the following presumptions:-

i. Working hours/shift 8 hours ii. No. of shift/days 1

iii. Working days 300 iv. Total no. of working hours 2400 v. Working efficiency 75%

vi. Time period for achieving 3rd year from the date on which vii. Labor charges As per the minimum wages act of state govt.

viii. Margin Money investment 24% of capital ix. Rate of interest on fixed and

working capital 15%

x. Operative period of the project 10 years.

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Note: Value of machinery & equipment is estimated on the basis of prevailing

cost of machinery at the time of preparation on project profile.

4. IMPLEMENTATION SCHEDULE Project implementation will take a period of 3 months from the date of

approval of the scheme. Break-up of activities with relative time for each activity is

shown below:-

i. Scheme preparation and approval 2-4 weeks

ii. SSI provisional registration 0-1 weeks

iii. Sanction of loan 4-6 weeks

iv. Clearance from Pollution Control Board 1-2 weeks

v. Placement or order for delivery of m/c 4-5 weeks

vi. Installation of Machinery & Equipments 1-2 weeks

vii. Power connection 3-4 weeks

viii. Trial run 1-2 weeks

ix. Commencement of production 1-2 weeks

5. TECHNICAL ASPECTS 5.1. Process of Manufacturing

First, rotogravure printing rollers are fitted in the machine. Then the packaging material to be print is also fed into the machine. After adjusting the quantity of ink, the printing operation is started. The printed sheets/rolls are collected and taken for cutting, sizing & packaging etc.

5.2. Quality Control and Standards The product will be supplied to the customers as per their specifications.

5.3. Production Capacity This project envisages production of Multi-color polythene bag (various sizes)

60 MT per annum and job work as well.

5.4. Motive Power

Total power requirement: 15 HP

5.5. Pollution Control No special pollution Control measures are needed. NOC is to be taken from

Pollution Control Board before commencement of the project.

5.6. Energy Conservation

Proper maintenance and judicial use of the power operated machines will conserve energy.

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6. FINANCIAL ASPECT 6.1. Fixed Capital

Land &Building: (Area )

i. Land 200 Sq. Mtrs.

ii. Built up Area 150 Sq. Mtrs.

iii. Open area 50 Sq. Mtrs.

Rented Rs.15,000/- P. M .

6.1.1. Machinery and Equipments

Sl. No. Particulars No. Value (Rs.)

1. Multi colour Rotogravure Printing Machine in standard size 50 inches with 10 HP Electric motor, complete with all accessories

1 9,00,000

2. Cutting and sealing machine size 18 inches automatic complete with 5 HP electric motor with all accessories

1 80,000

3. Rotogravure printing cylinder of 50 inches size 10 nose

1 5,00,000

4. Platform type weighing scale capacity 25o kg. 1 25,000

5. Electrification and installation - 1,50,500

6. Fire extinguisher - 20,000

7. Office furniture and fixtures - 50,000

8. Pre-operative expenses - 29,500

Total 17,55,000

6.2. Working Capital (per month) 6.2.1. Personnel

Sl.No. Designation No. Salary (Rs.) Total (Rs.)

1 Works Manager 1 15,000 15,000

2 Supervisor 1 12,000 12,000

3 Accountant 1 12,000 12,000

4 Clerk/Typist 1 10,000 10,000

5 Salesmen 1 11,000 11,000

6 Skilled Workers 2 9,500 19,000

7 Unskilled workers 2 8,500 17,000

8 Helpers 1 8,500 8,500

9 Watchman/ peon 1 8,500 8,500

Total 1,13,000

Perquisites @ 15% perquisites 16,950

Total 1,29,950

Say 1,30,000

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6.2.2. Raw Material S.No. Particulars Qty (Kg.) Rate (Rs.) Total (Rs.)

1 Polythene Sheet 5 MT 80,000 4,00,000

2 Ink 300 Kg 250 75,000

3 Ink Reducer 60 Kg 80 4,800

4 Packaging Material L.S. L.S. 20,200

Total 5,00,000

Add wastage 5% 25,000

Total 5,25,000

6.2.3. Utilities

1 Power 1800 unit @ Rs. 5/- Rs. 9,000

3 Water (L.S.) Rs. 1,000

Total Rs. 10,000

6.2.4. Other Contingent Expenses S.No. Particulars Amount (Rs.)

1 Rent 15,000

2 Transport Expenses 5,000

3 Stationery, postage, telephone 5,000

4 Legal and other fees 2,000

5 Insurance 2,000

6 Repair & maintenance 4,000

7 Consumable stores 4,000

8 Sales Expenses 2,000

9 Misc. Expenses 4,000

10 Advertisement and Publicity 2,000

Total 45,000

6.2.5. Total Recurring Expenditure (per month) S.No. Particulars Value (Rs.)

1 Personnel 1,30,000

2 Raw Materials 5,25,000

3 Utilities 10,000

4 Other expenses 45,000

Total 7,10,000

6.3. Total Capital Investment Total Fixed Capital Rs. 17,55,000 Total Working Capital (for 3 months) Rs. 21,30,000

Total Rs. 38,85,000

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7. FINANCIAL ANALYSIS 7.1. Cost of Production (per annum)

S.No. Description Amount (Rs.)

1 Total Recurring Cost 85,20,000

2 Depreciation on M/c and equipment @ 10% 1,50,500

3 Depreciation on office furniture @ 20% 10,000

4 Depreciation on Fire Extinguisher @ 20% 4,000

5 Interest on interest capital investment @ 15% 5,82,750

Total 92,67,250

7.2. Turnover (per annum)

S.No Item Qty. Rate/MT Amount (Rs.)

1 Multi-color rotogravure printed polythene (in various size)

60 MT 1,40,000 84,00,000

2 Job work on rotogravure printing 60 MT 35,000 21,00,000

Total 1,05,00,000

7.3. Net Profit (per annum) = Turnover cost of production = Rs. 1,05,00,000 92,67,250 = Rs. 12,32,750

7.4. Net Profit Ratio

= Net profit per year

X 100 Turnover per year

= 12,32,750

X 100 1,05,00,000

= 11.74 %

7.5. Rate of Return

= Net profit per year

X 100 Total Capital Investment

= 12,32,750

X 100 38,85,000

= 31.73 %

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7.6. Break-even Point

Fixed Cost Value (Rs.)

Depreciation on machinery /equipment 1,50,500

Depreciation on furniture @ 20% 10,000

Depreciation on fire extinguisher @ 20% 4,000

Interest on total capital investment @ 15% pa 5,82,750

Insurance 24,000

40% of salary wages 6,24,000

40% of other expenses (excluding rent & insurance) 1,34,400

Rent 1,80,000

Total 17,09,650

Say Rs. 17,10,000

B.E.P

= Fixed Cost

X 100 Fixed Cost + Net Profit

= 17,10,000

X 100 17,10,000 + 12,32,750

= 58.10 %

MACHINERY & EQUIPMENT SUPPLIERS

1. M/s. Wellman Machinery 43, Feeder Road, Belghoria, Kolkatta-53 (WB)

2. M/s. Indo Europa Trading Co. Chandani Chowk, Delhi-110006.

3. M/s. Lapra & Co. Anand Parbat Indl. Area, New Delhi.

4. M/s. The Print & Paper Sales Pvt. Ltd., 4/7, Waterloo Street, Kolkata-69.

RAW MATERIAL SUPPLIERS

1. Polythene film from local market

2. M/s. Coats India Ltd., 33/1, Netaji Subhash Road, Kolkata-70001

3. M/s. Adhesive & Chemicals 33/1, Netaji Subhash Road, Kolkata-70001