Hospital Beds

Production Capacity : 67.70 lakh  

Uploaded on : September 2009


Product and its Applications

Adjustable Hospital Beds that are widely used in hospitals and clinics. In order to meet the functionality of the product in a hospital, these beds are made in a wide range, e.g. Fowler Hospital Bed, Semi Fowler, Plain, Recovery, Paediatric, Fracture, ICU Hospital Bed, General hospital bed with rigid mesh mattress platform. Out of these, Fowler hospital beds and General purpose bedsteads are in large demand.

Fowler Hospital Beds are known for their extra comfort and functionality. These are available in size 1980L x 900W x 600H or 2070L x 910W x 600H mm. The frame work is made of strong rectangular steel tubes, provided with four section perforated top, two separate screws for backrest and knee rest manoeuvring, SS tubular head and foot bows with laminated panels, four swivel castors, two with brake, four IV rod locations, pre-treated and epoxy powder coated


Market Potential

The demand for adjustable hospital beds is increasing due to increase in the number of hospitals and their expansion and increase in number of private and government nursing homes, A large number of new hospitals and nursing homes are coming up in order to meet the patients' demand. It has led to steady increase in the requirement of hospital furniture. The growth rate is expected to be substantial. As such there is a vast scope for the steel furniture manufacture units to take up this activity for not only as a diversification but also better capacity utilization by installing a few balancing equipments.


Basis and Presumption

  • The unit will work for 300 days per annum on single shift basis.
  • The unit can achieve its full capacity utilization during the 3rd year of operation.
  • The wages for workers are taken as per prevailing rates in this type of industry.
  • Interest rate for total capital investment is calculated @ 12% per annum.
  • The entrepreneur is expected to raise 20-25% of the capital as margin money.
  • The unit would construct its own building.

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 01 month
SSI provisional registration 1-2 months
Sanction of financial supports etc 2-5 months
Installation of machinery and power connection 6-8 months
Trial run and production 01 month

Technical aspects


Location

The plant can be located at any suitable place keeping in view the marketing convenience, availability of power and skilled manpower.


Salient Features of Process / Technology

The basic operations involved in the manufacture of adjustable beds are: cutting and bending of pipes; cutting of M.S. angles; cutting of strips; welding, riveting; grinding; assembly of elevating mechanism; painting, baking.


Pollution Control

These types of units do not produce effluents or any other polluting materials. Therefore pollution control measures are not taken into account.


Energy Conservation

This industry is not a large-scale power consuming industry. However maximum care should be taken in conservation of electrical energy.


Production Capacity

Quantity 600 different types of hospital beds
Installed capacity 850 beds / annum
Optimum capacity utilization 70%
Working days 300
Manpower 15

Financial Aspects


Fixed Capital


Land & Building Amount (Rs. lakh)

Particulars

Amount (Rs. lakh)

Land 300 m 2 00.20
Building 180 m 2 16.00
Total 16.20

Machinery and Equipment Amount (Rs. lakh)

Description

Amount

Pipe bending machine hand operated with fixtures locally fabricated -5, Arc welding sets-2, Gas cutting set with torch, regulators etc.-2 sets, Bench drilling machine 13 mm capacity-1, Portable drilling machine 13 mm capacity-2, Flexible shaft grinder 150wheel mm-2, Double ended bench grinder 300 mm size-1, Hand shearing machine 3 mm capacity-2, Baking oven 2.5 x 2 m x 2 m size 20 kW-2, Hand Press-3, Cleaning, Pickling, Phosphating tanks 2.5 x 2 x 2 m-10, Compressor with spray gun unit for painting-2, Riveting machine portable type electrical-1, Hand tools, instruments. Fixtures and dies. O5.80
Erection & electrification of machinery @ 10% cost 00.58
Office furniture & fixtures 00.82
Total 07.20

Pre-operative Expenses Amount (Rs. lakh)

Consultancy fee, project report, deposits with electricity department etc 00.80

Total Fixed Capital Amount (Rs. lakh)

(9.1.1+9.1.2+9.1.3) 24.20

Recurring expenses per annum


Personnel Amount (Rs. lakh)

Designation

No.

Salary Per month

Amount

Factory Manager 1 10,000 01.20
Supervisory staff 2 08,000 00.96
Office Assistant 2 06,000 00.72
Technician 0 05,000 01.80
Skilled workers 4 04,500 02.16
Unskilled workers 5 03,000 01.80
Perquisites @15 %     01.60
Total       09.70

Raw Material including packaging materials Amount (Rs. lakh)

Particulars

Qty (t)

Rate/t (Rs.)

Amount (Rs. lakh)

M.S Angle Iron 40 mm x 40 mm x 3 mm and 38 mm x 38 mm x 3 mm 13.50 0.40 05.40
M.S Tubes 38.10 mm o.d. x 1.6/1.22 mm thick 36.00 0.38 13.68
M.S Tubes 25.40 mm o.d x 1.6/1.22 mm thick 22.00 0.40 08.80
M.S Tubes 19.5 mm o.d x 1.22 mm thick 13.50 0.41 05.54
M.S Strips 1.25 mm x 25 mm 13.50 0.30 04.05
Castor wheels 300 No LS 01.44
Nuts, bolts, screws, washers, flats, rubber items, paint etc. LS LS 02.87
Total     38.90

Utilities

Particulars

Amount (Rs. lakh)

Power 01.90
Water 00.10
Total 02.00

Other Contingent Expenses Amount (Rs. lakh)

Particulars

Amount(Rs. lakh)

Repairs and maintenance @10% 00.70
Consumables & spares, others 00.60
Transport & travel 00.90
Publicity, postage, telephone 01.20
Insurance @1% 00.20
Total 03.60

Total Recurring Expenditure Amount (Rs. lakh)

(9.2.1 + 9.2.2 + 9.2.3 + 9.2.4) 54.20

Working Capital Amount (Rs. lakh)

Recurring expenses for 3 months 13.50

Total Capital Investment Amount (Rs. lakh)

Fixed capital (Refer 9.1.4) 54.20
Working capital (Refer 9.3) 13.50
Total 67.70

Financial Analysis


Cost of Production (per annum) Amount (Rs. lakh)

Recurring expenses (Refer 9.2.5) 54.20
Depreciation on building @ 5% 00.80
Depreciation on machinery @10% 00.64
Depreciation on furniture @ 20% 00.16
Interest on Capital Investment @ 12% 08.20
Total 64.00

SSale Proceeds (Turnover) per year Amount (Rs. lakh)


Item

Qty

Rate (Rs.)

Amount (Rs.lakh)

250 nos. Fowlers hospital beds @ Rs.8000/ each 375 18,000 67.50
150 nos. General purpose hospital beds @ Rs.2500/- each 225 6,000 13.50
Sale of scrap     03.00
Interest on Capital Investment @ 12% 08.20 08.20 08.20
Total 600 - 84.00

Net Profit per year

   

= Sales - Cost of production
= 84 – 64
= Rs. 20 lakh


Net Profit Ratio

   

Net profit X 100
---------------------

Sales


20X 100
---------------

84

= 23.8 %


Rate of Return on Investment

   

Net profit X 100
------------------------

Capital Investment


20 X 100
-------------

67.70

= 30 %


Annual Fixed Cost Amount (Rs. lakh)

All depreciation 01.60
Interest 08.20
40% of salary, wages, utility, contingency 06.12
Insurance 00.20
Total 16.12


Break even Point

   

Annual Fixed Cost X 100
---------------------------------

Annual Fixed Cost + Profit

16.12 X 100
------------------
16.12 + 20


= 44.6 %


Addresses of Machinery Suppliers

  • M/s. Quality Machine Tools
    No.25 J.C. Road , Near VSL Bldg.,
    Bangalore-560002.
  • M/s. Batliboi Engineers Pvt. Ltd.
    99/2, 99/3 N.R. Road , Bangalore -560002
  • M/s. Perfect Machine Tools, Grant Road,
    Bangalore – 560001
  • M/s. Simplicity Engineers, B-99 Mayapuri,
    New Delhi
  • M/s. K.G. Khosla & Co., Mathura Road , Badarpur,
    Delhi .

Contact for more information

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com