Project Report On

1. DRY WALL PUTTY (WHITE CEMENT BASED)

INTRODUCTION

White cement based Wall Putty a plastering material to fill the holes and patches before paint primer or distemper. In general, fillers & stoppers are paste-like materials, highly pigmented, used to fill surface imperfections (fillers) and to make good gross surface defects prior to painting operations (stoppers). Caulking compounds, putties and same cements have a boiled drying oil, usually combine with resins that act as the binder putty is the thick mixture of finally powdered calcium carbonate (whiting) and acid refined linseed oil which imparts good wetting and grinding characteristics. There are variegated types of putties for wood too. For glazing wood & filling holes and cracks on the surface, of timber or metal, a stiff paste of linseed oil and whiting is used. This composition is the traditional putty. It is sometimes modified by the addition of small amounts of white lead in oil. So called commercial putty contains more or less mineral or other oil instead of linseed oil.

MARKET POTENTIAL

The demand for wall putty is always on the higher side due to its heavy consumption. As the construction work and industrialization is our country is being done in rapid strides, this eventually leads to higher consumption of putty. In future, the constructions and industrial buildings, etc. are likely to increase tremendously as a result the demand will increase simultaneously. One of the world largest and fastest growing cement industries, the Indian cement industry has been expanding significantly on back of rising infrastructure activities, increasing demand from housing sector, and construction recovery. According to our latest research report, the recent developments in the industry along with the strong support of government are attracting the global cement giants. We have estimated that the total cement installed capacity of India is to increase with a CAGR of around 7% during 2012 to 13 to 2014 to 15.

BASIS & PRESUMPTIONS

(i) The output capacity is taken as 4000 Kgs/day. The unit will work at 8 hrs. per day for 25 working days in a month and 300 days in a year. The output capacity may vary from machinery to machinery and the cost of machinery may also vary from supplier to supplier.(ii) The time period for achieving the full envisaged capacity utilisation is six months (iii) The labour wages are as per the prevailing rates in the market (iv) The rate of interest for fixed and working capital is taken as 12 per cent (v) The margin money requirement for this project is 30 percent (viii) The present profile has to be updated taking into prevailing cost of land, building, machinery etc. at the time of implementation of the project

IMPLEMENTATION SCHEDULE

One yeari. Project report preparation, registration, local application, etc. - 2 months.ii. Placing of order for machinery and equipments, delivery, erection, etc. - 6 months.iii. Electrification, procurement of raw-materials, trial production - 3 months.iv. Commercial production - 1 month.

TECHNICAL ASPECT i. Manufacturing Process :White Cement, Dolomite or Calcite Powder, Hydrated Lime, Cellulose Powder and Polymer powder. The whole material is fed from the top into ball mill and allowed the material for 1 hrs Dry grinding. The unloaded material through belt conveyor is collected and make packaging.

ii. Quality Standards :The product will be manufactured as per buyer’s specification.

FINANCIAL ASPECT

A. Fixed Capital(i) Land and Building (Rs.)Land 400 sq. mts. 2,00,000Built-up area: office, store etc. 2,50,000500 sq. ft. Total 4,50,000

(ii) Plant and Machinery (Rs.)a. Mild steel ball mill of 1 ton capacity. 4,00,000b Belt conveyor 1,00,000 Total 5,00,000

Fixed Capital = 450000+500000 = 9,50,000

B. Working Capital(i) Staff and Labour (per month) (Rs.)a. Skilled workers-2 Nos. 12,000b. Unskilled workers-5 Nos. 20000c. Sales representative-1 No. 10,000 Total 42,000

(ii) Raw Materials (per month) Kg. (Rs.)a. White Cement 20000 3,20,000b. Dolomite or Calcite Powder 77000 2,54,000

c. Hydrated Lime 1000 7,000d. Cellulose powder 400 1,80,000e. R.D. Powder 1600 2,88,000 Total 1,049,000

(iii) Utilities (per month) (Rs.)Power 10,000Water 1,000Total 11,000

(iv) Other Contingent Expenses (per month) (Rs.)a. Postage and Stationery 1,000b. Telephone 700c. Taxes 2,000d. Repair and Maintenance 6,000e. Travelling and Transport 10,000f. Advertising and publicity 5,000g. Miscellaneous Expenses 2,000 Total 26,700

Total recurring expenses 11,28,700 Working Capitals For 3 months 33,86,100

C. Total Capital Investment (Rs.)Fixed Capital 9,50,000Working Capital for 3 months 33,86,100 Total 43,36,100

D. Financial Analysis(i) Cost of Production and Profitability (Rs.)i. Total Recurring Cost 1,35,44,400 ii. Depreciation on Building @ 5% 12,500iii. Depreciation on machinery & equipment @ 10% 50,000iv. Interest on total capital investment @ 12% 5,20,332 Total 1,41,27,232

E. Receipt by sale of 1200MT of Wall putty per year 1,59,00,000

F. Net Profit (per year) Sales(Rs.) - Cost of Production (Rs.) = Profit (Rs.) 1,59,00,000 - 1,41,27,232 = 17,72,768

G. Net Profit Ratio = Net Profit × 100 Sales = 17,72,768 × 100 = 11.14%

1,59,00,000

Break-even Point

Fixed Cost (per year) (Rs.)Depreciation on Building @ 5% 12,500Depreciation on machinery & equipment @ 10% 50,000Interest on total capital investment @ 12% 5,20,33240% Salary and Wages 2,01,60040% other contingent expenses 1,28,160 Total 9,12,592

B.E.P. % = Fixed Cost × 100 Fixed Cost + Net Profit

= 9,12,592×100 9,12,592+17,72,768

= 33.98 %