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Leaf Cups and Plates
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Production Capacity
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:
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90 lakh leaf cups and 45 lakh leaf
plates
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| Uploaded
on |
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September
2007 |
Product and Its Applications
Leaf cups and plates are traditionally
made by hand in Indian villages. These are commonly used for
serving food at marriages, religions and social functions.
The laborious craft can now be converted into a machine operation
to make these containers in elegant shapes and sizes. Such
cups and plates are made out of plant leaves of beautia, arecanut
sheath, banana etc. These have good dimensional stability
and are inexpensive, hygienic and biodegradable.
2.0 Market Potential
There is a large scope for setting up
cottage scale units in most parts of India. The cups and plates
are in large demand by hawkers, fast food restaurants, star-hotels,
mass feeding and for prasadam in religious institutions.
3.0 Basis and Presumptions
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 first month of operation.
c) The wages for skilled 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 and equipment are
based on average prices of machinery manufacturers.
4.0 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:
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Scheme preparation and approval
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:
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01 month
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Sanction of financial supports etc.
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:
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2-5 months
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Installation of machinery and power
connection
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:
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01 months
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Trial run and production
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:
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01 month
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5.0 Technical
Aspects
5.1 Location
The plant would have 5 machines. It can
be located in any village where leaves of banana, beautia,
bauhinia and arecanut palm sheaths are available. It can also
work without electricity.
5.2 Process of Manufacture
The leaf cup machine is a simple pedal
operated machine, manually operated with minimum power consumption.
It requires 300 watts of electric power. It can also work
without power by kerosene oil blow lamp. The leaves are washed
and dried to retain their pliability and kept in a polythene
bag to avoid drying before use. The leaves are placed on the
lower die platten, the pedal is pressed down and released
after a few seconds. All the operation like folding, trimming,
pressing into shape and drying are done in a single operation
by pressing the pedal lever. The leaf cup, subjected to heating
to 150 degree C for 10 seconds also gets sterilized.
6. 0 Pollution Control
There is no major pollution problem associated
with this industry except for disposal of waste which should
be managed appropriately.
7.0 Energy Conservation
No coal or LDO is being used. If kerosene
oil blow lamp is used, care should be taken in regularly cleaning
the nozzles and proper air mixture to minimize smoke.
8.0 Production Capacity
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Quantity
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:
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Leaf cups 12 lakh + leaf plates
4lakh
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Installed capacity
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12 lakh cups + 5lakh plates
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Optimum capacity utilization
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:
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70%
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Working days
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:
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300/annum
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Manpower
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:
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7
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Utilities
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Motive Power
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:
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1 kWH
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Water kL/day
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: |
0.3 kL/day
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9.0 Financial
Aspects
9.1 Fixed Capital
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Land & Building
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:
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Amount (Rs. lakh
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Land 60 sq.m.
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:
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0.08
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Built up Area 30 sq. m.
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:
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0.70
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Total cost of Land and Building
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: |
0.78
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9.1. 2 Machinery
and Equipment
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Description
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:
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Amount
(Rs. lakh)
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Leaf cup and plate making machine
lever on bearings - 3
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:
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0.50
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| Dies with circular dia
- 4 |
: |
0.20 |
| Die square katori -
3 |
: |
0.30 |
| Blow lamp with fittings
attachment 1 |
: |
0.02 |
| Tool kit - 1 |
: |
0.01 |
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Total
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: |
1.03 |
| Erection and electrification
@ 10% of machinery cost |
: |
0.10 |
| Office furniture &
fixtures |
: |
0.05 |
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Total
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: |
1.18 |
9.1.3 Pre-operative Expenses
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Consultancy fee, project report,
deposits with electricity department etc.
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:
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0.02
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9.1.4 Total Fixed Capital (9.1.1+9.1.2+9.1.3)
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: |
1.98
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9.2 Recurring
expenses per annum
9.2.1 Personnel
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Designation
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No .
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Salary
(Per month )
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Amount
(Rs.lakh)
|
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Entrepreneur
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1
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4,000
|
-
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Unskilled workers
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6
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1,800
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1.30
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Total
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1.30
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| Perquisites @ 15% |
0.20
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Total
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1.50
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9.2.2 Raw Material including packaging
materials
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Particulars
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Qt y .(t)
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Amount (Rs. lakh)
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Leaves
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1.00
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Packing material
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0.10
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Total
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1.10
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9.2.3 Utilities
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Amount (Rs. lakh)
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Power
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0.02
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Water
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-
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Total
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0.02
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9.2.4 Other Contingent Expenses
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Amount (Rs. lakh)
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Repairs and maintenance@10%
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0.12
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Consumables & spares Transport
& Travel Publicity Postage & stationery Telephone
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0.09
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Insurance
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0.01
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Total
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0.22 |
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9.2. 5 Total Recurring Expenditure
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Amount (Rs. lakh)
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(9.2.1+9.2.2+9.2.3+9.2.4 )
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2.84
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9. 3 Working Capital
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Recurring Expenditure for 3 months
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0.72
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9. 4 Total Capital Investment
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Amount (Rs. lakh)
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Fixed capital (Refer 9.1.4)
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1.98
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Working capital (Refer 9.3)
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0.72
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Total
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2.70
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10.0 Financial Analysis
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10.1 Cost of Production
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Amount (Rs. lakh)
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Recurring expenses (Refer 9.2.5)
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2.84
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Depreciation on building @5%
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0.04
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Depreciation on machinery @10%
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0.10
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Depreciation on furniture @20%
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0.01
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Interest on Capital Investment @12%
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0.33
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Total
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3.32
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10.2 Sale Proceeds / Annual turnover
| Item |
Qty. (MT) |
Rate per 100 |
Amount (Rs.lakh) |
| Leaf plates (assorted) |
4 lakh |
Rs. 55 |
2.20 |
| Leaf cups (assorted) |
12 lakh |
Rs. 18 |
2.16 |
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Total
|
4.36 |
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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4.36 - 3.32 |
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=
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Rs. 1.04 lakh |
10.4 Net Profit Ratio
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=
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Net profit x 100
--------------------
Sales |
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=
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1.04 X 100
----------------
4.36 |
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=
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23.85 % |
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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1.04 X 100
----------------
2.74 |
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=
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38.52 % |
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10.6 Annual Fixed Cost
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Amount (Rs. Lakh)
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All depreciation
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0.15
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Interest
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0.33
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40% of salary, wages, utility, contingency
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0.60
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Insurance
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0.01
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Total
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1.09
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10.7 Break even Point
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=
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Annual Fixed Cost x100
----------------------------
Annual Fixed Cost + Profit |
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=
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1.09 X 100
----------------
1.09 + 1.04 |
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=
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51.2 % |
1 1.0 Addresses of Machinery and Equipment
Suppliers
Shree Murugan Industries,
Plot No. 68/W, Hootagalli
Industrial Area Belawadi Post
Mysore - 571186
AMI Eng. Station Road,
Opposite Veena Cinema
Patna - 800 001
Chandan Eng Works, Industrial Estate,
Kurji Patna - 800 010
Kalpataru Enterprises,
HIG, Sector E, Aliganj Scheme,
Lucknow - 226 020
Nalanda Agro Works, Nalanda Nagar,
Kurji Patna- 800 010
Anil & Co.
68, NGO's Colony, Rajendra Nagar,
Mysore - 570 007
Shah Eng. Co.,
C-18, Ajanta Commercial Centre, Ashram Road,
Ahmedabad - 380 004
12. Other Special Features
A careful selection of product mix is necessary based on the
local market demand and availability of raw materials. The
facilities can also be utilised to manufacture different sizes
and shapes of cups and plates for fuller utilisation of capacity.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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