Quantity : 12 kilo
litres (per annum)
Value : Rs. 30,00,000
Uploaded
on
:
29th
December 2006
Introduction
Ball pen is one of the most
essential items for students, educational institutions
and for office work, etc. Ink is a viscous and
coloured fluid composed of reflux blue, varnishes,
oil and drier. This is a mass consumption item.
Market Potential
Ball pen is the most common
tool for all schools, colleges and university
going students for writing purpose. As greater
emphasis is being laid on removal of illiteracy,
the prospects of Ball pen ink industry are bright.
Basis and Presumptions
i) Efficiency and working hours considered
for full capacity utilization.
8 working hours/day/shift
300 working days taken into account annually.
ii) Time period for achieving
full/ envisaged capacity utilization.
Within 2 months after trial
production.
iii) Labours, wages and conditions.
As per local salaries.
iv) Interest rate for fixed
and working capital.
Average @ 14%
v) Margin money
Average 25%
vi) Rented shed
With partition walls 20'×21'
vii) Costing of machinery and
equipment.
As per local rates.
Implementation Schedule
1. Selection of site
2 months
2. Collection of quotation for M/c and Equipment
2 months
3. Procurement of machinery.
1 month
4. Placement of order for raw material
1/2 month
5. Commercial production
½ month
Total
6 months
Technical
Aspects
Process of Manufacture
Metal complex dyes and complexes in castor oil/stand
oil, varnishes and driers are mixed together in
suitable proportions in a mixing machine. The
material so produced is called ball pen ink, which
is viscous in nature. Metal complex dyes are chosen
to get a shade to suit customer’s requirements.
A list of metal complex dyes used for making ball
pen ink is given at the end.
Quality Control and Standards
As per market demand.
Production
Capacity (per annum)
Quantity
12 kilo litres
Value
Rs. 30,00,000
Motive
Power
Electric power
5 H.P. approx.
Man power
8 Nos.
Pollution Control
No liquid or gaseous effluents
are released during the process. Pollution is
not involved.
Energy Conservation
Not much relevant.
Financial
Aspects
A. Fixed Capital
(i) Shed of size (rented) 20’×20' with
partition walls Rs. 200 per month
(ii) Machinery and Equipments
Description of M/cs
Qty.
Price (Rs.)
Mixing machine with motor Cap. 10 litres
per 8 hrs.
1
60,000
Weighing m/c platform type Cap. 50 kg.
1
15,000
Shovel made of stainless steel material
4
4,000
Scraper knife
4
1600
Storage tank (for varnish and oil) HDPP
material
2
8,000
Triple Roll Mill
1
50,000
Total
1,38,600
(iii) Testing Equipments
Qty.
(Rs.)
1. Ford’s cup
2
2,500
2. Rectangular Glass Sheet
2
800
3. Exhaust Fan (for pollution control)
1
800
4. Cost of power connection, Electrification
and installation Charges @ 10% of the cost
of M/c. and equipments
14,270
(iv) Total Cost of M/c. and Equipment
Rs. 156970
Cost of office equipments/ working Tables
and chairs etc.
5,000
(v) Pre-operative Expenses
Rs. 5,000
(vi) Total Fixed Capital
Rs. 166,970
B. Working Capital (per month)
(i) Personnel
Designation
No.
Salary (Rs.)
Total (Rs.)
1. Manager/Chemist
1
3000
3,000
2. Accountant/Clerk
1
2000
2,000
Technical Staff
3. Skilled workers
2
1500
3,000
4. Unskilled workers
2
1200
2,400
5. Casual labour
2
1000
2,000
Total
12,400
(+) Perquisites @ 15% of salaries
1,860
Total
14,260
(ii) Raw material including Packaging
(per month)
Item
Qty.
Rate (Rs.)
Value (Rs.)
a) Metal Complex
200Kg.
400/ kg. dyes
80,000
b) Stand oil/castor oil/solvents
550 kg.
130/Kg
71,500
c) Varnishes (alkyd/ Phenolic/Maleic)
250 Kg.
140/Kg
35,000
d) Drier
10 Kg.
230/Kg
2,300
Total
1,88,800
(iii) Utilities (per month)
(Rs.)
i) Power
5 H.P. @ Rs. 3 per unit
2250
ii) Water charges
L.S.
500
Total
2750
(iv) Other Contingent Expenses (per month)
(Rs.)
i) Rent of the shed
2000
ii) Postage and stationery
500
iii) Consumable stores
500
iv) Repairs and maintenance
500
v) Transport charges
1000
vi) Advertisement and publicity
1500
vii) Insurance
1500
viii) Sales expenses and miscellaneous expenditure
1000
Total
8500
(v) Total Recurring Expenditure
(per month)
(Rs.)
i) Raw material
1,88,800
ii) Utilities
2,750
iii) Salary/Wages
14,260
iv) Other expenditure
8,500
Total
2,14,310
C. Total Capital Investment
Fixed capital
Rs. 1,66,970
Working capital for 3 months
Rs. 6,42,930
Total
Rs. 8,09,900
Financial Analysis
(1) Cost of production (per year)
(Rs.)
a) Total expenditure
25,71,720
b) Depreciation on machinery @ 10%
14,270
c) Depreciation on furniture @ 20%
1,000
d) Interest on total capital investment
1,13,400
Total
27,00,390
(2)Turnover (per year)
(Rs.)
Ball Pen Ink 12 KL @ Rs. 250 per litre
30,00,000
(3) Net Profit Before Income Tax
Rs. 2,99,610
(4) Net Profit Ratio
10%
(5) Rate of Return
37%
(6) Break-even Point
(i) Calculation of Fixed Cost
(Rs.)
a) Depreciation on m/cs., equipments and
office equipments
14270
b) Rent of shed
24000
c) Interest on total investment
113400
d) Insurance
18000
e) 40% of salaries and wages
68448
f) 40% of other contingent expenses (excluding
rent and insurance)
24000
Total
262118
(ii) Profit
Rs. 3,12,632
B.E.P
=
FC ×100
-------------
FC+Profit
=
249096 × 100
-------------------
262118+ 299610
=
262118
-----------× 100
561728
=
46.6%
Additional
Information
1. Machinery and equipments can be fabricated
locally.
2. Taxes like sales tax, income tax, etc. not
included in the project profile.
Basic dyes for Ball Pen
Ink
1. Victoria Blue Base F 4 R
2. Methyl Violet base
3. Basonyl Yellow X-RL 300%
4. Basonyl Brilliant Red X-4 G 300%
5. Basonyl Green 830 Liquid
6. Basonyl Blue 636
7. Basonyl Violet 600
8. Basonyl Red 482
9. Basonyl Red 540
10. Rhodamine GDN Extra
Addresses of Machinery Suppliers
1. M/s. Anup Engineering Ltd.
Post Box No. 1158,
Ahmedabad-380002
2. M/s. Billy Engg. Enterprises
761, Thiruvettivur,
Chennai-600081
