|
White Staple Pins
| Product Code |
: |
387502009 |
| Quality and Standards
|
: |
IS 4224 : 1972 |
| Production Capacity
|
: |
Qty. : 1300 Cartons
(per annum)
Value : Rs.5850000 |
| Uploaded
on |
: |
April
2007 |
Introduction
The project is to manufacture staple pins
especially of galvanised iron wire type, commonly known as
white staples. These staples find wide application to staple
sheets of paper, cheque, common known bills, album photos,
sandwich bags and in financial institutions, offices, garment
industry, leather industry, rubber industry and any shop delivering
the materials in packets and so on.
These white shining staples of good quality
are currently imported involving an estimated foreign exchange
drain of Rs. 60 crores per year. In India, manufacturing has
been limited to mostly copper coated staples, which unfortunately
rust fast. Also some white staples made from substandard wires
have been in the market. However, neither of these are comparable
in quality and performance to these of white staples such
as those of “MAX” of Japan.
Market Potential
White staples made in India can compete
without strain against “MAX” of Japan especially since the
matching quality is assured while the whole sales price is
low per packet of No. 10 staples. With the assistance of sales
representatives and a network of dealers organisation, it
is apparent that the staple pins can be sold easily in domestic
market. The project also envisages entering exports especially
since the staple pins can stand up to the rigours of the International
quality standards.
Basis and Presumptions
1. Capacity utilisation - 75% on single
shift basis.
2. Time period (one year) - 300 days
3. Labour wages-Estimated on the minimum wages.
4. Rate of interest -12% per annum.
5. Margin money -25% varying from State to State.
6. Operation period of project- 10 Years.
7. Building is of Own at the prevailing rate of market
8. Cost of machinery and equipment is approximate to that
prevailing in the market.
Implementation Schedule
| Sl.No. |
Activity |
Period |
| 1. |
Selection of site |
2 weeks |
| 2. |
Preparation of project
report |
4 weeks |
| 3. |
Provisional registration
|
1 week |
| 4. |
Financial arrangement
|
8 weeks |
| 5. |
Procurement of machinery
|
6 weeks |
| 6. |
Installation, electrification
and commissioning of machinery |
8 weeks. |
Technical Aspects
Process of Manufacture
The process of making staple pins has
been simplified with introduction of sophisticated fully Automatic
Staple Pin Making Machines. The preformed round wire is fed
to the machine which flattens it and produces the necessary
staple pins in pre-determined lengths of 50 staple pins in
each length. The formation of this length is assisted by the
use of a special staple pin adhesive, also developed in India.
The staple pin lengths are packed suitably with each packet
containing 1000 pins. 20 of these packets are packed in a
box and 40 of these packets are packed in cardboard carton.
Quality Control
and Standards
The pins should be manufactured as per relevant Indian specification
IS 4224:1972.
Production Capacity
1300 cartons of staple pins
Pollution Control
Manufacturing of this product does not
attract pollution control measures.
Energy Conservation
The unit is equipped with low powered
machinery. The energy conservation efforts need in this unit
are the creation of awareness among the workers.
Financial Aspects
A Fixed Capital
| (i) Land
and Building (per month) |
(In Rs.) |
| Total Built up area
& covered area: |
200 Sq. mtrs.@ Rs 6000 /
Sq Mtr |
1200000 |
| Construction Cost for
Working shed, store, office etc |
200 Sq Mtr @ Rs 7000/
Sq Mtr |
1400000 |
|
Total
|
2600000 |
(ii) Machinery and Equipments
| Sl. No. |
Description |
Qty. |
Rate |
Amount
(In Rs.) |
| 1. |
Automatic staple pin
making machines with electricals |
12 |
200000 |
2400000
|
| 2. |
Double ended Bench grinder
cap 8" wheel |
|
|
25000 |
| 3. |
Common tools and measuring
instruments |
|
|
15000 |
| 4. |
Spares and fixtures
|
|
|
10000 |
| |
Installation and electrification
@ 10% |
|
|
245000 |
| |
Office equipment, furniture
etc. |
|
|
80000 |
|
Total
|
2775000 |
| (iii) Pre-operative
Expenses |
40000 |
| Total
Fixed Capital (i+ii+ iii) |
5415000 |
B. Working Capital (per month)
(i) Personnel Salary and Wages
| Sl.No. |
Designation |
No. |
Salary (Rs.) |
Total
(In Rs.) |
| 1. |
Manager/Foreman |
1 |
18000 |
18000 |
| 2. |
Accountant clerk/typist
|
1 |
7000 |
7000 |
| 3. |
Skilled worker |
4 |
7000 |
28000 |
| 4. |
Semi-skilled worker
|
6 |
5000 |
30000 |
| 5. |
Helper |
2 |
3000 |
6000 |
| 6. |
Watchman |
1 |
3000 |
3000 |
|
Total
|
92000 |
| Add perquisites
@22% |
20240 |
|
Total
|
112240 |
| (ii) Raw Material
(indigenous) |
(In Rs.) |
| 1. Preformed wire (round
wire)@ Rs. 70 per kg. 200 Kg |
140000
|
| 2. Adhesive @ Rs. 250
per ltrs. 100 Ltrs. |
25000 |
| 3. Packing material/boxes
L.S. |
40000 |
|
Total
|
205000
|
| (iii) Utilities |
(In Rs.) |
| Power |
10000 |
|
Total
|
10000 |
| (iv) Other Contingent
Expenses |
(Rs.) |
| 1. Postage and stationery
|
1000 |
| 2. Travelling and transport
|
10000 |
| 3. Repairs and maintenance
|
3000 |
| 4. Advertisement and
publicity |
5000 |
| 5. Insurance |
1000 |
| 6. Consumable stores
|
5000 |
| 7. Telephone charges
|
2000 |
| 8. Selling expenses
|
10000 |
| 9. Misc. expenditure
|
3000 |
|
Total
|
40000 |
| (v) Total Recurring
Expenditure (per month) (i + ii + iii + iv) |
367240 |
| (vi) Total Working Capital
for 2 months |
734480 |
C. Total Capital Investment
| (a) Fixed Capital |
5415000 |
| (b) Working Capital
(for 2 months) |
734480 |
|
Total
|
6149480 |
Financial Analysis
| (1) Cost of Production
(per year) |
(In Rs.) |
| Total recurring cost
|
4406880 |
| Depreciation on machinery
and equipment @ 10% |
245000 |
| Depreciation on Building@5%
|
130000 |
| Depreciation on office
equipment @ 20% |
16000 |
| Interest on total investment
@ 12% |
737938 |
|
Total
|
5535818 |
| (2) Total
Sales (per annum) |
| By sale of 1300 cartons
No.10 staple pin @ Rs. 4500/ carton |
5850000 |
| (3) Profit (per year)
|
|
5850000- 5535818 |
| |
= |
314182 |
| |
|
|
| (4) Net Profit Ratio
|
= |
Net profit × 100
-------------------- |
| |
|
Turnover |
| |
|
|
| |
= |
314182 × 100
------------------- |
| |
|
5850000 |
| |
|
|
| |
= |
5.37 |
| |
|
|
| (5) Rate of Return
|
= |
Net profit × 100
--------------------------- |
| |
|
Total Investment |
| |
|
|
| |
|
314182 × 100
--------------- |
| |
|
6149480 |
| |
|
|
| |
= |
5.11 |
(6) Break-even Point
| Fixed Cost |
Amount
(In Rs.) |
| Depreciation on machinery
and equipment @ 10% |
245000 |
| Depreciation on Building@5%
|
130000 |
| Depreciation on office
equipment @ 20% |
16000 |
| Interest on total investment
@ 12% |
737938 |
| 40% of salary and wages
|
538752 |
| 40% of other contingent
expenses (excluding insurance) |
39000 |
| Insurance |
12000 |
|
Total
|
1718690 |
| B.E.P |
= |
Fixed Cost
× 100
----------------------- |
| |
|
Fixed Cost + Profit
|
| |
|
|
| |
= |
1718690 x100
-------------------- |
| |
|
1718690 +314182 |
| |
|
|
| |
= |
84.54 |
Addresses of Machinery Suppliers
1. M/s. Industrial Machine Corporation
F-36, C, Sainik Market,
Main Road, Ranchi - 834001.
2. M/s. OTO Corporation
305, 5th Main Cross,
TV Phase Peanya Indl. Area,
Bangalore - 560058
3. Sohal Engg. Corporation
61, Ganesh Chandra Avenue,
Kolkata-700013.
Raw Material Suppliers
Raw material available in the local markets
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
