Welcome to Technopreneur

Product Code	:	94326 and 94389
Quality and Standards	:	As per Customers Specification
Uploaded on	:	May 2007

Introduction

Mankind has a natural liking and inclination towards clay made utensils/crockery. Though a number of substitute items appeared in the market ultimately the clay crockery has sustained. The fancy items of bone china like tableware, crockery, decorative items, lamp shades etc. is finding a good domestic as well as export market.

Market Potential

The decorative items made of bone china are elegant for while there is a customer preference. The demand of bone china crockery and decorative item in urban areas is gradually increasing. There is a good scope of export to Gulf countries.

Basis and Presumptions

The unit will run on single shift basis in 300 working days in a year. There will be a 8 hours shift in a day. Furnance will work on three shifts basis.

Full production capacity will be achieved in 3 years.

Wages are taken as per the minimum wages of the Government.

Rate of interest on borrowings- 13%.

Life of plant and machinery-10 years.

Life of furnace-5 years.

Cost of plant and machinery as per latest quotations.

Implementation Schedule

Sl.No.	Activity	Period (in months)
1.	Possession of land	2
2.	Construction of building	5
3.	Purchase of machinery	8
4.	Installation of machinery	12
5.	Trial production	14

Technical Aspects
Process of Manufacture

China clay powder, calcined quartz powder, potash felspar, bone ash and other raw materials are weighed proportionately and fed in to ball mill for fine grinding. This mixture is ground to 300 mesh and sieved after passing through magnetic separator. The slurry is placed in agitator. This slurry is again pumped in to filter press, cake received from filter press is mixed with water and electrolyte to make casting slip. Now desired items are cast in Plaster of Paris moulds. Articles are taken out from moulds and dried. These articles are finished. After finishing and drying articles are biscuit fired. Articles are glazed by dipping or spraying and again after drying these articles are gloss fired. At last ready articles are decorated by transfer papers, ceramic colour or gold. These decorated articles are fired at 650ºC in electrical furnace. Thus ready articles are sorted and packed for despatch.

Quality Control and Standards

As per customer's specification.

Production Capacity (per annum)

Bone China Crockery and Art ware

Quantity	: 130 MT
Value	:

Motive Power

48 H. P.

Pollution Control

Bone China unit has to take no objection certificate from the State Pollution Control Board as per rule.

Financial Aspects
A Fixed Capital

(i) Land and Building	(Rs.)
Land 2000 sq. mtr @ Rs.2 000sq . mtr.	4000000
Building
Work shed 500 sq. mtr. @ Rs. 5 000 sq. mtr.	2500000
Office Store 100 sq. mtr. @ Rs. 7000 sq. mtr.	700000
Total	7200000

(ii) Machinery and Equipments

Particulars	Quantity (Nos.)	Value (Rs.)
Ball mill 5' x 5 1/2' with motor and other accessories	3	120000
Ball mill 3' x 3' with 7 HP motor and other accessories	1	50000
Blunger 10' with 5 HP motor	1	80000
Agitator with 3 HP motor	1	48500
Vibrating screen with magnetic separator	2	60000
Filter press 44'' dia, 30 plates	1	100000
De-airing pug mills with 5 HP motor	1	80000
Saggar press hand operated	1	30000
Pot mills 2 HP motor	1	10000
Shuttle kiln 6 Cubic meter	2	2400000
Muffle electric furnace	1	400000
Installation, electrification expenditure	L.S.	300000
Plaster of Paris moulds	L.S.	60000
Rack, panels etc.	L.S.	25000
Testing equipments	L.S.	20000
Office furniture	L.S.	100000
Total		3883500

(iii) Pre-operative Expenses

80000

Total Fixed Capital	(Rs.)
Land	4000000
Building	3200000
Plant and Machinery	3883500
Preliminary Expenses	80000
Total	11163500

B. Working Capital (per month)

(i) Salary and Wages

Particulars	Nos.	Salary / (Rs.)	Total (Rs.)
Manager	1	16000	16000
Production Manager	1	10000	10000
Supervisors	3	7000	21000
Accountant/Clerk	1	7000	7000
Firemen	4	7000	28000
Moulders	2	6500	13000
Skilled Workers	25	5000	125000
Un-skilled Workers	15	3500	525000
Decorators	2	4000	8000
Peons	2	3000	6000
Electrician	1	4000	4000
Total			763000
Add Perquisites @ 10 %			76300
Total			839300

(ii) Raw Material

Particulars	Quantity	Rate (Rs.)	Value (Rs.)
Bone ash	9 MT	16000	144000
China clay	2.4 MT	3000	7200
Felspar	6.1 MT	1500	9150
Frit	1 MT	19000	19000
Plaster of Paris	2 MT	2200	4400
Fire clay	3.0 MT	2500	7500
Sillimanite	0.18 MT	5000	900
Decoration paper	L.S.	15000	15000
Packing material	L.S.	15000	15000
Other Contingent expenses	L.S.	10000	10000
Total			232150

(iii) Utilities	(Rs.)
Power 48 HP	43200
Diesel L.D.O. 12 KL @ Rs. 35,000 per K.L.	420000
Total	463200

(iv) Other Contingent Expenses	(Rs.)
Postage and Stationery	2000
Advertisement and publicity	5000
Insurance	2500
Telephone Bills	4000
Consumables	10000
Repair and Maintenance	5000
Miscellaneous Expenses	5000
Total	33500

(v) Total Working Capital (per month)	(Rs.)
Raw Materials	232150
Salaries and Wages	839300
Utilities	463200
Other Contingent Expenses	33500
Total	1568150
Working Capital for 2 months	3136300

C. Total Capital Investment

Fixed capital	11163500
Working Capital for 2 months	3136300
Total	14299800

Financial Analysis

(1) Cost of Production (per annum)	(Rs.)
Total recurring cost	18817800
Depreciation on building @ 5%	160000
Depreciation on furnace @ 20%	80000
Depreciation on Plant and Machinery @ 10%	338350
Depreciation on Furniture and Fixtures @ 25%	25000
Interest on Total Capital Investment @ 13%	1858974
Total	21280124

(2) Turnover (per annum)

Item	Quantity	Rate (Tonnes)	Value (Rs.)
Bone China Waxes and Art ware
Grade A	50 M.T.	195000	9750000
Grade B	80 M.T.	160000	12800000
Total			22550000

(3) Net Profit (per annum)	=	Turnover – Cost of Production
	=	22550000 – 21280124
	=	1269876

(4) Net Profit Ratio	=	Net Profit per annum x 100 -----------------------------
		Turn Over per annum

	=	5.63

(5) Rate of Return	=	Net Profit per annum x 100 ---------------------------
		Total Capital Investment

	=	8.88

(6) Break-even Point

Fixed Cost	(Rs.)
1. Depreciation on Building	160000
2. Depreciation on Plant and Machinery and Furnace	418350
3. Depreciation on Furniture and Fixture	25000
4. Interest on Borrowings @ 13%	1858974
5. 40% of Salary and Wages	4028640
6. 40% of Other Contingent Expenses	13400
7. Insurance	30000
Total	6534364

B.E.P	=	Fixed Cost × 100 -----------------------
		Fixed Cost + Profit

	=	6534364 x 100 -----------------------
		6534364 + 1269876

	=	83.72%

Addresses of Plant and Machinery/ Furnace Suppliers

1. M/s. Shiv Industries
206, Veena Dalvi Industrial Estate,
Oshiwara, Jogeshwari (W),
Mumbai - 400 102

2. M/s. Erich Magnetics
176/6B/10, Old Tijab Mill,
Bholanath Nagar, Shahadra,
Delhi - 110 032

3. M/s. Amic Industries Private Limited
10, B.T. Road, Kolkata - 700 056

4. M/s. Eleind Engineering Private Limited,
D-20/2, Okhla Industrial Area,
Phase - II, New Delhi - 110 020

Raw Material Suppliers

1. M/s. Alam Ji Plaster Udyog
Ramji Ki Gol,
Tehsil Gurmalani,
Barmer (Rajasthan)

2. M/s. Ceekay Plasters and Chemicals,
64, Industrial Area, Bikaner
(Rajasthan)

3. M/s. Tower Minerals
Post Office- Malpur,
Zenipur, (Rajasthan)

4. M/s. Mahavir Minerals Private Limited
Jautani Bazar,
Ajmer, (Rajasthan)