|
Wrought Iron Furniture
| Product Code |
: |
342001000 |
| Quality and Standards
|
: |
No Standard Specifications
available
Manufacturers', own specifications |
| Production Capacity |
: |
Qty. i) 3000 Nos. of
Wrought Iron Chairs.
ii) 3000 Nos. of Wrought Iron Tables.
iii) 3000 Nos. of Wrought Iron Sofa.
iv) 3000 Nos. of Wrought Iron Bed.
Value : Rs. 309 Lakhs (per annum) |
| Uploaded
on |
: |
April
2007 |
Introduction
Wrought iron articles in furniture industry
are becoming more popular. The articles like chairs, sofas,
tables and beds are made in quite attractive models with different
designs on their arms and backs. Wooden furniture after some
period, is worn out due to defects in wood quality and normal
wear and tear. Due to elegant appearance, durability and innovative
designs, wrought iron furniture is becoming popular in modern
society. They are fast replacing the conventional wooden tables,
chairs, sofas, beds.
Market Potential
With increase in the population and overall
development that has taken place in the country, the number
of educational institutions, hospitals, commercial establishments
and offices are widely using chairs, tables, sofas and beds.
This is creating good market potential in urban and semi-urban
areas. As already explained, due to certain specific advantages,
wrought iron furniture is fast replacing conventional wooden
items. Apart from the domestic market, there is also export
market for quality wrought iron furniture.
Basis and Presumptions
1) The cost of machinery and equipment
is for particular make and prices are approximate.
2) All the operations involved in manufacturing wrought iron
furniture will be undert taken in Industrial Workshop of the
unit.
3) This project profile is prepared on the basis of double
shift for 16 hours of working in a day. Total working days
in a year have been assumed to be about 300 and efficiency
75%.
4) The skilled and semi-skilled workers in line are available
in the local area.
5) The rental value of the land and built up area has been
stipulated on the basis of rate prevailing in the industrial
area. It may vary from place to place.
6) Rate of interest has been calculated @ 12% per annum. However,
this figure is likely to vary depending on the financial outlay
of the project and location of the unit.
7) The provisions made in other respect viz; personnel, utilities,
raw material and over head expenses etc. are based on the
prevailing market rates.
8) All the machinery, raw material would be available from
indigenous sources.
9) The break-even point has been calculated on envisaged capacity
utilisation basis.
10) The operative period of this project is estimated to be
about ten years, considering technology obsolescence.
Implementation Schedule
| Sl.No. |
Activity |
Period |
| 1. |
Preparation of project
report |
1 Week |
| 2. |
Provisional registration
from DI/DIC of the area for getting assistance/ financial
help |
2 Weeks |
| 3. |
Location of work shed
with necessary infrastructure in industrial Area before
ordering the Plant and Machinery |
2 Weeks |
| 4. |
Placement of order for
plant and machinery |
3 Weeks |
| 5. |
Recruitment of Staff
|
2 Weeks |
| 6. |
Installation of plant
and machinery |
2 Weeks |
| 7. |
Time allotted for other
misc. work |
2 Weeks |
| 8. |
Trial Production |
Two Weeks |
Total time required to start commercial
production is estimated to be about four months.
Technical Aspects
Process of Manufacture
In the open market, plenty of raw material
of wrought iron in the shape of round, square, iron rods,
square pipes and also in other sectional forms is available.
Wrought iron is having its own property of “malleability,”
it can withstand the load without cracking.
Chairs, tables, sofas and beds used in
offices, factories, houses and hospitals are made from light
wrought iron sheets, strips and tubular wrought iron. The
sheets, strips and tubular wrought iron are cut to required
sizes and pressed to shape, bent in a press brake for sides
and drawers. Pipes of wrought iron for chairs, tables, sofas
and beds can also be bent according to design. Backs of chairs,
sofas and beds consist of decorative designing of various
kind of flowers and leaves etc. For this, design can be made
on pressing machine on the strips of wrought iron of different
sizes. Then the sides and backs of wrought iron furniture
are welded. Holes are made by drilling, wherever necessary
for fitting screws.
Fixing of doors, hinges, assembly, cleaning,
pickling and drying are to be done before painting. The spray
painted articles are to be stove enamelled.
Quality Control
and Standards
There is no quality standard. It is only fabrication of wrought
iron steel with various self made designs. The attractive
designs thus put lot of cheeriness in the products of wrought
iron furniture.
Production Capacity
It is proposed to manufacture 1500 Chairs,
tables, sofas and beds each per annum assuming their weight
to be 7.5 Kg., 15 Kg, 22 Kg and 30 Kgs. respectively of wrought
iron steel viz. rods, pipes and strips of various sizes.
Pollution Control
No pollution control device is necessary
for this project. However, spray painting will cause pollution
to some extent which can be minimised by installing exhaust
fans in painting room.
Energy Conservation
No specific energy conservation system
is required. Energy conservation can be done by saving single
phase power connections as much as possible. General awareness
is to be created for economic utilisation of energy at all
points as far as practical.
Financial Aspects
A Fixed Capital
| (i) Land and Building
|
Amount
(In Rs.) |
| (i) Land 450 sq. mtr.
@ Rs. 3500 per sq. mtr including registration |
1575000 |
| (ii) Cost of land development,
fencing, approach road, inside roads, land scaping, drainage
etc. @ Rs. 1000 per sq. mtr. |
450000 |
| (iii) Total built-up
area 425 sq. mtrs. as follows: |
|
| Administrative building
75 sq. mtrs. construction cost @ Rs. 7,500 per sq. m |
562500 |
| Factory shed 300 sq.
mtrs. construction cost @ Rs.5000 per sq. mtr. |
1500000 |
| Stores, staff canteen
etc. 50 sq. mtrs. @ Rs. 6,000 per sq. mtr. |
300000 |
| Water System (including
Bore Well + over head tank etc) |
500000 |
| Total civil cost= cost
of land + building |
4887500 |
(ii) Machinery and Equipments
| Sl. No. |
Description |
Ind./ Imp. |
Qty. |
Amount (In Rs.) |
| 1. |
Tredle Guillotine shearing
M/c. 48" width |
Ind. |
1 |
80000 |
| 2. |
Power Press 25 Tonne
capacity |
-do- |
1 |
60000 |
| 3. |
Hand operated brake press
machine capacity 14 SWG x 1800 mm (Sheet Bending) |
-do- |
1 |
50000 |
| 4. |
Spot Welding machine
10 SWG with Accessories |
-do- |
1 |
40000 |
| 5. |
Hand operated hydraulic
pipe bending machine 25 mm, 36 mm, capacity with all dies
|
-do- |
1 |
30000 |
| 6. |
Drilling machine 1½”
|
-do- |
1 |
15000 |
| 7. |
Air Compressor with (1
HP) motor and Spray Gun |
-do- |
1 |
18000 |
| 8. |
Oxy-acetylene gas welding
set |
-do- |
1 |
14000 |
| 9. |
Pickling Tanks (Lead-lined)
|
-do- |
7 Nos. |
25000 |
| 10. |
Power Hacksaw machine
6" Jaw Capacity |
-do- |
1 No. |
25000 |
| 11. |
Stoving Chamber (8' x
4' x 4') fabricated |
-do- |
1 |
30000 |
|
Total
|
387000 |
| Tools and
Dies |
50000 |
| Furniture
and Office equipments |
80000 |
|
Total
|
517000 |
| (iii)Pre-operative
Expenses |
30000 |
| Total
Fixed Capital (i+ii+iii) |
5434500 |
B. Working Capital (per month)
(i) Staff and Labour
| Sl.No. |
Designation |
Nos. |
Salary (Rs.) |
Total
(In Rs.) |
| (a) Administrative
Staff |
| 1. |
Sales-cum-Marketing Manager
|
1 |
15000 |
15000 |
| 2. |
Accountant-cum Store
Keeper |
1 |
8000 |
8000 |
| 3. |
Clerk-cum-Typist |
1 |
6000 |
6000 |
| 4. |
Peon/chowkidar |
2 |
3000 |
6000 |
| 5. |
Sweeper (Part-time) |
1 |
2000 |
2000 |
| (b) Technical
Staff |
| 1. |
Foreman/Supervisor |
2 |
8000 |
16000 |
| 2. |
Skilled Workers |
8 |
6500 |
52000 |
| 3. |
Semi-skilled Workers
|
4 |
5500 |
22000 |
| 4. |
Welders |
4 |
5000 |
20000 |
| 5. |
Helpers |
4 |
4000 |
16000 |
|
Total
|
163000 |
| Add Perquisites
@ 22% of salary |
35860 |
|
Total
|
198860 |
(ii) Raw Material
| Sl. No. |
Description |
Qty. |
Rate (Rs.) |
Total (In Rs.) |
| 1. |
Wrought iron pipes of
different Dia. Sizes in Tonnes |
10 |
45000 |
450000
|
| 2. |
Wrought iron strips in
2 mm 3 mm, 6 mm and 10 mm thickness in Tonnes |
4.8 |
53000 |
254400
|
| 3. |
Angle Irons and Rounds
in different size |
4 |
40000 |
160000
|
| 4. |
Seating Material for
Chairs and Sofas in Nos |
1000 |
550 |
550000
|
| 5. |
Coir Foam Sheets for
beds in Nos |
250 |
1450 |
362500
|
| 6. |
Bought out components
such as nuts, bolts, rivets, Welding Rods and Paints etc.
|
|
|
120000 |
|
Total
|
1896900
|
| (iii) Utilities |
(In Rs.) |
| Electricity and fuel
|
10000 |
| (iv) Other Contingent
Expenses |
(In Rs.) |
| 1. Insurance Expenses
|
3000 |
| 2. Advertisement/Publicity
charges |
30000 |
| 3. Travelling Expenses
|
10000 |
| 4. Consumable stores
such as oil, lubricants and Cotton waste etc. |
10000 |
| 5. Repair and maintenance
|
4000 |
| 6. Transport and packaging
charges |
20000 |
| 7. Postage and stationery
|
6000 |
| 8. Telephone Expenses
|
5000 |
| 9. Miscellaneous Expenses
|
10000 |
| Total |
98000 |
| (v) Total Recurring
Expenditure (per month) |
(In Rs.) |
| 1. Personnel |
198860 |
| 2. Raw Material |
1896900 |
| 3. Utilities |
10000 |
| 4. Other Contingent Expenses
|
98000 |
| Total |
2203760 |
| (vi) Total
Working Capital (for 2 Months) |
| Rs 2203760 X 2 |
4407520 |
C. Total Capital Investment
| (1) Fixed Capital |
5434500 |
| (2) Working Capital (for
2 months) |
4407520 |
|
Total
|
9842020 |
Machinery Utilisation
The number of machines to be installed
has been determined in such a way, that planned scheduling
of jobs will not cause any bottleneck in operation during
bulk production. As such, the unit will make utilisation of
machines as envisaged, without any bottleneck.
Financial Analysis
| (1) Cost of Production
(per annum) |
(In Rs.) |
| i) Total recurring cost
|
26445120 |
| ii) Depreciation on Machine
Equipment @ 10% |
38700 |
| iii) Depreciation on
Furniture and Office Equipment @ 20% |
16000 |
| iv) Depreciation on Tools
and Dies @ 25% |
12500 |
| v) Interest on total
investment @ 12% |
1181042 |
| vi)Depreciation in Building
@ 5 % |
244375 |
|
Total
|
27937737 |
| (2) Turnover (per
year) |
(In Rs.) |
| i) By sale of 3000 Nos.
of Wrought iron Chairs @ Rs. 900 each |
2700000 |
| ii) By sale of 3000 Nos.
of Wrought Iron Tables @ Rs. 2000 each |
6600000 |
| iii) By sale of 3000
Nos. of Wrought Iron Sofas @ Rs. 2800 each |
9000000 |
| iv) By sale of 3000 Nos.
of Wrought Iron Bed @ Rs. 4000 each |
12600000 |
|
Total
|
30900000 |
| (3) Net Profit (per
year) |
|
Rs. 30900000 - 27937737
|
| |
= |
2962263 |
| |
|
|
| (4) Profit Ratio |
= |
Net Profit per year ×
100
-------------------- |
| |
|
Turnover per year |
| |
|
|
| |
= |
2962263 × 100
------------------- |
| |
|
30900000 |
| |
|
|
| |
= |
9.59 |
| |
|
|
| (5) Rate of Return |
= |
Net Profit/year ×
100
--------------------------- |
| |
|
Capital Investment |
| |
|
|
| |
= |
30.1 |
(6) Break-even Point
| (i) Fixed Cost (per
year) |
(In Rs.) |
| a) Depreciation on machinery,
Office Furniture, Tools and Dies etc. |
67200 |
| b) Depreciation on Building
@ 5 % |
244375 |
| c) Insurance |
36000 |
| d) 40% of Salaries and
Wages |
954528 |
| e) 40% of Contingent
expenses other than Insurance |
456000 |
| f) Interest on total
investment |
1181042 |
| Total |
2939145 |
| (ii) Net Profit (per
year) |
2962263 |
| B.E.P |
= |
Fixed Cost × 100
----------------------- |
| |
|
Fixed Cost + Net Profit
|
| |
|
|
| |
= |
2939145 × 100
----------------------- |
| |
|
2939145 + 2962263 |
| |
|
|
| |
= |
49.8 |
Addresses of
Machinery and Equipment Suppliers (For Treadline Guillotine
m/c.)
1. M/s. Ganesh Engg. Works
A-287, Okhla Indl. Area,
Phase–I, New Delhi-110020.
2. M/s. Lamba Press and Shears
6/10, Kirti Nagar Indl. Area,
New Delhi–110015
3. M/s. Om Mechanical Works
Plot No. 5, Gali No. 4,
New Rohtak Road Indl. Area,
New Delhi-110005.
4. M/s. United Engg. Corporation
B-96, Mayapuri, Phase-I,
Rewari Line,
New Delhi-110064.
For Power Press
1. M/s. Lamba Bros (P) Ltd.
6/10, Kirti Nagar Indl. Area,
New Delhi–110015.
2. M/s. Sonar Machine Tools
Near Kishan Cold Storage,
Dr. Vikram Sarabhai Marg,
Gondal Road, Rajkot–360004.
3. M/s. Vishwakala Machine Tools
Gondal Road, Near S.T. Workshop,
Rajkot - 360 004.
4. M/s. Vankes and Company
13/1, Indl., Estate, Patliputra,
Patna - 800 013.
For Hacksaw Machines
1. M/s. Sagar Heavy Engg. (P) Ltd.
G.T. Road, Nand Pur P.O.,
Near Sannewal,
Ludhiana.
2. M/s. Vee Kay Industries
S-B, Textile Colony, Indl. Area, A
Ludhiana.
3. M/s. Jaswant Engg. Works
G.T. Road, Millar Gang,
Ludhiana.
For Hand Operated Brake Press
1. M/s. Modgil Co.
G.T. Road,
Batala - 143505.
2. M/s. Sonar Machine Tools
Near Kishan Cold Storage,
Dr. Vikram Sarabhai Marg,
Gondal Road,
Rajkot - 360 004
3. M/s. Khalsa Engg. Works
B-226, Naraina Indl. Area,
Phase-I, New Delhi - 110028.
For Drilling Machine
1. M/s. Modern Tools Manufacturers
B-118, Phase-I,
Mayapuri Indl. Estate,
New Delhi.
2. M/s. Paul and Co.
24, Najafgarh Road,
New Delhi-110015
3. M/s. Shree Mahalaxmi Engg. Works
27, DLF Indl. Area,
Najafgarh Road (Moti Nagar)
New Delhi-110 015.
For Welding Sets
1. M/s. Kukreja Welding Equipments
A-63, G.T. Karnal Road,
Indl. Area, Delhi-110 033.
2. M/s. Sham Ravinder and Co.
23, New Qutab Road,
Opp. Telewara,
Delhi - 110 006.
3. M/s. Berco Welding and Electricals (P) Ltd.
G.T. Road By Pass, Near Indl. Estate,
Jullunder City (Punjab).
For Pickling
Plants
1. M/s. Govan Indl. Corporation
29-R/2, Indl. Area,
New Rohtak Road,
New Delhi.
For Air Compressor
1. M/s. Indoon Projects and Equipments
D-170, Okhla Indl. Area, Phase-I,
New Delhi-110020.
2. M/s. Three-F-Filters (P) Ltd.
C-110/1, Naraina Indl. Area,
Phase-I,
New Delhi-110028.
3. M/s. Hydraulic Machine Tools
S/228, Indl. Area,
Jallandar City.
Raw Material Suppliers
Raw material is available in the local markets.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
