Welcome to Technopreneur

Product Code	:	29131 and 29132
Quality and Standards	:	IS 33161 (Revision 1974)
Uploaded on	:	June 2007

Introduction

Polished marble tiles manufactured out of natural marble blocks of different colours is well known as one of the most beautiful decorative and reliable building material. Marble tiles are used as building material in hotels, hospitals and airport terminals, architectural use for interior, exterior and floor decoration in building, decorative memorial stone, high precision instrument beds and surface plates. Besides these, marble is in demand for table, craftwork for interior decoration, name plates etc.

Market Potential

The polished marble tiles are having good demand in India and abroad. In developing countries like India, the construction work of hotels, airport, railway stations, hospitals etc. is in great upsurge. The people have developed attraction for marble tiles due to its hardness, durability, smoothness and finish.

Realizing the potential of polished marble tiles, to earn substantial foreign exchange, the Govt. of India included the marble tiles industry in its list of export thrust sector. The major importers of polished marble tiles are the United State of America, United Kingdom (U.K.), Japan, Germany, Singapore and Canada. India's main competitors in the international market are China, South Korea, Brazil etc.

Basis and Presumptions

With 300 working days in a year and of 8 hrs. shift per day, the unit is likely to achieve 80% of its installed capacity.

The unit shall achieve full capacity in 3 years.

Labour wages has been taken according to the Minimum Wages Act of the State Government.

Interest Rate	13%
Fixed capital	13%
Working Capital	13%
Margin money	25%
Estimate life of the project	10 years
Repayment of loan	7 years.

Average cost of land has been considered as per the rate of SIDC in industrial areas.

Implementation Schedule

Sl. No.	Activity	Period
1.	Preparing of project report	1 month
2.	Selection of site	1 month
3.	Registration of SSI	1 Week
4.	Availability of finance/loan	1 month
5.	Construction of building	1 month
6.	Machinery procurement, erection and commissioning	3 months
7.	Trial Production	1 week
8.	Recruitment of labour	2 weeks

Technical Aspects
Process of Manufacture

Marble slabs of required thickness procured from block sawing machine are fed in the polishing machine for surface polishing and cut into the desired dimensions of tiles with the help of edge cutting machine. Thereafter, the tiles are sorted out size wise and packed.

Quality Control and Standards

IS 33161 (Revision 1974).

Production Capacity (per annum)

Quantity	: 112500 Nos. tiles size 6”x12”
	: 62500 Nos. tiles, size 24”x24”
	: 112500 Nos. tiles, size 12” x 12”
Value	: 9687500

Motive Power

30 kW.

Pollution Control

Water treatment plant is required for recirculation of the water.

Financial Aspects
A Fixed Capital

( i ) Land and Building	(Rs.)
Land:About 500 sq. meter cost will be @ Rs. 2000 per sq.mtr.	1000000
Building: Workshed: 12 x 10 sq, mtr. @ Rs. 4000 sq.mtr.	480000
Office Stores etc.: 100 sq.mtr. @ Rs. 5000 sq. mtr.	500000
Total	1980000

(ii) Machinery and Equipments

Particular	Indigenous/ Imported	No.	Cost (Rs.)
Automatic marble cutting machine with 13 HP Motor and other accessories	Indigenous	1	500000
Edge cutting machine for edge cutting of the tiles with 10.5 HP motor and other accessories	"	1	450000
Automatic polishing machine with 5 HP motor and other accessories	"	1	260000
Overhead water tank cap 2500 Ltr. With water pump.	"	1	40000
Total			1250000
Cost of power connection including transformer 30 KW			120000
Electrification, transformer and foundation etc@ 10%			125000
Cost of fixture and furniture			80000
(iii) Pre-operative expenses			20000
Total			1595000

B. Working Capital (Per Month)

(i) Personnel (per month)

Designation	Nos.	Salary/ month	(Rs.)
Manager-cum-supervisor	1	15000	15000
Typist-cum-clerk	1	4000	4000
Accountant	1	7000	7000
Sales-man	1	8000	8000
Skilled workers	2	8000	16000
Un-skilled workers	4	4500	18000
Peon	1	3000	3000
Watchman	1	3000	3000
+ 22% p erquisites			16280
Total			90280

(ii) Raw Materials (per month)

Description	Indige-nous/	Qty.(Rs.)	Rate (Rs.)	Amount (Rs.)
Marble Slab	Ind	1600	200 sq.m.	320000
Diamond saw and Spares	Ind	L.S.		80000
Lubricants, chemical and Misc.	Ind	L.S.		35000
Total				435000

(iii) Utilities (per month)		(Rs.)
Electricity	L.S.	25000
Water	L.S.	1500
Total		26500

(iv) Other Contingent Expenses (per month)	(Rs.)
Postage and Stationery	2000
Telephone	2000
Repair and Maintenance	3000
Transportation charges	14000
Insurance	5000
Sales expenses	15000
Consumable Stores	2000
Advertisement and Publicity	4000
Misc. Expenses	10000
Total	57000

(v) Total Recurring Expenditure (per month)	(Rs.)
Salaries and wages	90280
Raw materials	435000
Utilities	26500
Misc. expenses	57000
Total	608780

(vi) Total Working Capital	(Rs.)
( On two months basis)	1217560

C. Total Capital Investment

Total fixed investment	3575000
Total working capital	1217560
Total	4792560

Financial Analysis

(1) Cost of Production (per annum)	(Rs.)
Total recurring cost	7305360
Depreciation on building @ 5%	99000
Depreciation on machinery and equipment @ 10%	125000
Depreciation on furniture and fixtures @ 20%	16000
Interest on total investment @ 13%	623032.8
Total	8168392.8

(2)	Turn-over (per year)
1,12,500 Nos. tiles of size 6”x12” @ Rs.20 per tile	2250000
1,12,500 Nos. tiles of size 12”x12” @ Rs.30 per tile	3375000
62,500 Nos. of tiles of size 24”x24” @ Rs.65 per tile	4062500
Total	9687500

(3) Net Profit (per year)	=	Sales – Cost of production
	=	Rs. 9687500 – 8165792.8
	=	1519107.2

(4) Net Profit Ratio	=	Net profit per year x 100 --------------------
		Turn over per year

	=	1521707.2x100 ---------------
		9687500

	=	15.71%

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

	=	1521707.2x100 ----------------------
		4792560

	=	31.88%

(6) Break-even Point

Fixed Cost (per annum)	(Rs.)
Depreciation on machinery 10%	125000
Depreciation on building 5%	99000
Depreciation on fixture and furniture 20%	16000
Interest on Total Investment @13%	623032.8
40% of salary and wages	433344
40% of other Contingent expenses (excluding insurance)	249600
Insurance	60000
Total	1605976.8

B.E.P	=	Fixed Cost x 100 ---------------------
		Fixed cost + Net Profit

	=	1603376.8 X100 -----------------------
		1603376.8 +1521707.2

	=	51.31%

Addresses of Machinery Suppliers

1. M/s. M.I. Shah and Co. (Machinery) Pvt. Ltd.,
Lotus House, 5th Floor, 33, A,
New Marine Line,
Mumbai-400020

2. M/s. Veenedyt
3, Girish, 224, Katni Road,
Matunga (West),
Mumbai-400016

3. M/s. Rajasthan Udyog
13, Heavy Indl. Area,
Jodhpur.

4. M/s. Karam Chand Mansion
Barrack Road,
Behind Metro Cinema,
Mumbai-400020.

5. M/s. Grant Tools Pvt.Ltd.
53, 19th Main, 25th Cross,
5 Block Rajaji Nagar,
Bangalore-560010.

6. M/s. Surfix Polix
2-430, A, Naraina Village,
New Delhi-110028.

7. M/s. Ved Saso Mechanical
Opp. Lohil Machine Tools,
Panki Ind. Area, Kanpur.

Raw Material Suppliers

1. M/s. Andhra Pradesh Mining Corporation
Panjagutta,
Hyderabad-500024

2. M/s. Maharastra Steel Mining Corporation
Abbyanakar Nagar,
Nagpur-440010