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Ice Cream Cones
| Project cost |
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29 lakh |
| Uploaded on |
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September 2009 |
1.0 Product and its Applications
Ice cream cone is a favourite food in
any store or restaurant. This tasty treat is known to cool
down in the summer and makes an edible container for a cold
snack. The frosty smoothness of the ice cream complements
the crispy crunch of the cone for an interesting taste combination.
There are almost as many stories of how the ice cream cone
was invented as there are flavours that it holds.
Ice-creams of many varieties, flavours
and in different forms (cones, cups, slices, bulk packing,
candies, etc) are served round the year and demand is going
up year after year. Possibly the most popular mode of serving
is in cones as it is neat & clean, easy to store and there
is no disposal need. With continuous increase in sale of ice-creams,
demand for cones is increasing. It is a mass consumption item.
Ice-cream cones are prepared from wheat & corn flour and
they are eaten along with the ice cream.
Pre-determined quantity of ice-cream is
automatically filled in each cone. Cones are not only convenient
but there is no residual waste as well. They are of different
colours and flavours. This is a very common product and can
be produced all over the country. Nearness to urban market
should be the main guiding factor.
2.0 Market Potential
Consumption of ice-cream has been increasing
steadily over the years. With changing life styles and food
habits, this trend would continue even in future. Majority
of the consumers prefer ice-cream in cups or cones and party
or bulk packs or serving in glass bowls or plates is very
limited. Serving in paper-cups requires a spoon to eat and
disposal is a problem. But in case of cones there is no need
to have a spoon and they are eaten along with the ice cream.
Thus, this is the most convenient way of serving and also
preferred by customers. Ice cream candies result in waste
while eating and there is consumer resistance. The local brands,
ice-creams prepared by local dairies and parlours are the
major players. Ideally, some marketing tie-up can be made
with these local players as they are easily approachable and
contemplated production capacity may not permit regular and
large supplies to big manufacturers. The ice cream cone is
such a fixture of worldwide desserts, entertainment, amusement,
and relaxation that it is unlikely to fall out of favour.
Ice cream and its cone are consumed year-round.
3.0 Basis and
Presumption
a) The unit will work for 300 days per
annum on single shift basis.
b) The unit can achieve its full capacity
utilization during the 3rd year of operation.
c) The wages for workers are taken as
per prevailing rates in this type of industry.
d) Interest rate for total capital investment
is calculated @ 12% per annum.
e) The entrepreneur is expected to raise
20-25% of the capital as margin money.
f) The unit would construct its own building.
g) Costs of machinery are based on average
prices of machinery manufacturers.
Implementation
schedule
Project implementation will take a period
of 8 months. Break-up of the activities and relative time
for each activity is shown below:
|
Scheme preparation and approval
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01 month
|
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SSI provisional registration
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1-2 months
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Sanction of financial supports etc
|
2-5 months
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Installation of machinery and power
connection
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6-8 months
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Trial run and production
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01 month
|
5.0 Technical
Aspects
5.1 Location
The plant can be located at any suitable
place keeping in view the marketing convenience, availability
of power, water and skilled manpower.
5.2 Salient Features of Process / Technology
Three main dry ingredients compose all
types of cones. Wheat flour, corn /tapioca flour, and sugar
are chosen for baking quality, strength, and relative sweetness,
respectively. The quantity of sugar is a major distinguishing
feature between cone types. Sugar and waffle cones are made
of one-third sugar. Not only does this influence the sweet
flavour, but it affects the brown finished colour and the
crispy texture. Cake cones have less than 5% sugar.
Wet ingredients (and others added with
the wet materials) include water, shortening (edible fat or
grease), baking powder , colouring, flavouring, and salt.
Both the colouring and flavouring are natural products made
by outside specialists. Before any liquid is added, air compressors
are used to mix these dry ingredients in large coolers.
There are three principal types of ice
cream cone; the cake cone (also called a moulded or flat-bottomed
cone), the waffle cone, and the sugar cone. The waffle cone
is characterized by a rough or unfinished top edge. The sugar
cone is made with the same ingredients and process as a waffle
cone but has a finished top edge and sometimes a chocolate
lining.
The waffle pattern on all types of cones,
the finished edge of the sugar cone, and the shape of the
flat-bottomed cone (as well as comet varieties of the cake
cone) greatly influence the ease with which the finished cones
pop out of their moulds. Cone designers refine the waffle
pattern and other shape characteristics and make trial batches
to find the best design that releases from the mould without
burning, breaking, or creating weak spots that won't hold
ice cream or will break when the scoop is applied. The moulded
cone has a lip around the top that keeps drips contained inside
the cone. The row of teeth helps firmly seat the scoop of
ice cream and provides added strength where the upper lip
of the cone meets the cylindrical base.
Shapes and patterns also affect baking
characteristics. The finished cone should be uniform in colour
as well as shiny on the outside. It should bake uniformly
so that all sides (including the bottom) are thoroughly cooked.
The size is important because cones are expected to hold single,
double, and triple scoops. The first scoop has to fill the
cone and weight the bottom without vanishing completely into
the cone, and the third scoop should not overpower the cone
and cause it to break or tip too easily. The filled cone should
look equally appetizing whether it has one, two, or three
flavours atop it. Strength is an important characteristic,
not only to the consumer who holds it. Cones must withstand
pre filling in the factory if they are used for frozen treats
like the Drumstick. Unfilled cones have to be packed together
by mechanical devices. The cones must "nest" (fit
one inside another) neatly to allow efficient packing. Minimal
packing materials are used to cushion the cones, mainly because
of cost.
Taste is the key design factor. Cake cones
should be crisp instead of spongy and tasty like a mild cereal.
Waffle cones should be crunchy and sweet but not too hard
or over-powering in sugar content. The ice cream is the featured
food, and the cone must complement its quality.
Automatic ice-cream cone makers are available.
The dough is fed to the cone making machine. The machine makes
cones as per the mould they are baked-in and ready cones come
out of it. 50 or 100 cones are packed in polythene bags.
Finally, packaged cones are sold in bulk
to retail businesses like grocery, chain, convenience, and
drug stores. These retailers usually do not fill or modify
the cones; they sell the boxed cones directly to the consumer
who can make custom desserts and snacks with the cones at
home.
Quality Control : The correct addition
of ingredients is the most obvious quality control step, but
throughout the process specially trained quality control inspectors
watch cone making and baking, taste-test cones occasionally,
and reject any that are misshapen, broken, or over/under-cooked.
Whole cones are also removed from the process and cut and broken
apart to check that cones are truly perfect inside and out.
6.0 Pollution Control
There is no major pollution problem associated
with this industry except for disposal of waste which should
be managed appropriately. The entrepreneurs are advised to
take "No Objection Certificate" from the State Pollution
Control Board.
7.0 Energy Conservation
There should be no power leakage and adequate
attention should be provided.
8.0 Production Capacity
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Quantity
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100 lakh cones per year
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Installed capacity
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35,000 cones per day
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Optimum capacity utilization
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70%
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Working days
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300
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Manpower
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13
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Utilities
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Motive Power
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250 kWh
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9.0 Financial
Aspects
9.1 Fixed Capital
9.1.1 Land &
Building Amount (Rs. lakh)
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Particulars
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Amount
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Land 150 m 2
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00.60
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Built up area 100 m 2 -
|
05.00
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Total cost of land and building
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05.60
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9.1.2 Machinery and Equipment Amount
(Rs. lakh)
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Description
|
Amount
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Sifter, dough kneader, Cone making
machine automatic, sugar pulveriser, weighing scales,
quality control lab, carton stapler, etc.
|
10.50
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Erection & electrification of
@10% cost
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00.90
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Office furniture & fixtures
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01.10
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Total
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12.50
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9.1.3 Pre-operative Expenses Amount (Rs.
lakh)
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Consultancy fee, project report,
deposits with electricity department etc
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00.90
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9.1.4 Total Fixed Capital Amount (Rs.
lakh)
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(9.1.1+9.1.2+9.1.3)
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19.00
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9.2 Recurring
expenses per annum
9.2.1 Personnel
Amount (Rs. lakh)
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Designation
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No.
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Salary Per month
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Amount
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Factory Manager
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1
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10,000
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01.20
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Office Assistant
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2
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6,500
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01.56
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Technician
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2
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6,500
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01.56
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Skilled workers
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3
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4,000
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01.44
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Unskilled workers
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5
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3,000
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01.80
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07.56
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Perquisites @15 %
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00.94
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Total
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13
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08.50
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9.2.2 Raw Material including packaging
materials Amount (Rs. lakh)
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Particulars
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Qty
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Rate/t (Rs.)
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Amount
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Raw material & packing material
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LS
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LS
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24.50
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Total
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|
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24.50
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9.2.3 Utilities Amount (Rs. lakh)
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Particulars
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Amount
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|
Power 250 kWH
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02.40
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Water
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00.10
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|
Total
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02.50
|
9.2.4 Other Contingent Expenses Amount
(Rs. lakh)
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Particulars
|
Amount
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Repairs and maintenance @3.3%
|
00.48
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|
Consumables & spares, others
|
00.80
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Transport & travel
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00.60
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Publicity, postage, telephone
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01.36
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Insurance @1%
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00.16
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Total
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03.50
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9.2.5 Total Recurring Expenditure Amount
(Rs. lakh)
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(9.2.1 + 9.2.2 + 9.2.3 + 9.2.4)
|
39.00
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9.3 Working Capital Amount (Rs. lakh)
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Recurring expenses for 3 months
|
10.00
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9.4 Total Capital Investment Amount (Rs.
lakh)
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Fixed capital (Refer 9.1.4)
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19.00
|
|
Working capital (Refer 9.3)
|
10.00
|
|
Total
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29.00
|
10.0 Financial
Analysis
10.1 Cost of
Production (per annum) Amount (Rs. lakh)
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Recurring expenses (Refer 9.2.5)
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39.00
|
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Depreciation on building @ 5%
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00.25
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Depreciation on machinery @10%
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01.05
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Depreciation on furniture @ 20%
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00.22
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Interest on Capital Investment @
12%
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03.48
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|
Total
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44.00
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10.2 Sale Proceeds (Turnover) per year
Amount (Rs. lakh)
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Item
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Qty
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Rate (Rs.)
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Amount
|
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Ice cream cones
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10 million
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0.55 each
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55
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10.3 Net Profit per year
|
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=
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Sales -
Cost of production
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=
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55– 44
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=
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Rs. 11
lakh
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|
10.4 Net Profit Ratio
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=
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Net profit
X 100
----------------------
Sales
|
| |
|
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11 X 100
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55
|
| |
|
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=
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20%
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10.5 Rate of Return on Investment
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=
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Net profit
X 100
----------------------------
Capital Investment
|
|
|
|
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=
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11 X 100
-----------------------
29
|
|
|
|
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=
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38 %
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10.6 Annual Fixed Cost Amount (Rs. lakh)
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All depreciations
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01.52
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Interest
|
03.48
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40% of salary, wages, utility, contingency
|
05.80
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Insurance
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00.16
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Total
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10.96
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10.7 Break even Point
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=
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Annual
Fixed Cost X 100
-----------------------------------
Annual Fixed Cost + Profit
|
|
|
|
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=
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10.96 X
100
------------------
10.96 + 11
|
|
|
|
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=
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49.9%
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11.0 Addresses of Machinery and Equipment
Suppliers
1.Amrit Engineering Works,
Plot No. 139, Industrial Area, Phase-2,
Chandigarh-160 002.
2.
VCS INDIA Pvt. Ltd.,
VCS India House, 96/7, B/h.Shiv Estate,
Nr. Ravirandal Society, Nr. Jasodanagar Cross Road , N.H.No.8,
C.T.M,
Ahmedabad- 380 026
3.
Ultra Worldwide Private Limited
502, Maganlal Chambers, Iron Market, Near Masjid East,
Mumbai-400 009 
4. A-One Engineers
Plot No. 117, Indl. Area, Phase II, opp. ESI Hospital ,
Chandigarh -160 002. 
5.
K. G. N. Engineers
Plot No. 174 & 175, Opposite Masjid Lane , Old Airport
Road , Gauthamnagar,
Secunderabad - 500 011
6. R & D Engineers
A-41, Kukatpally Phase II,
Road No.4 via. I. E, Gandhi Nagar
Hyderabad - 500 037
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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