| Project Report for manufacturing HDPE Pipes in range of 20 mm to 160 mm for transportation of water, chemicals and gas. |
| |
Profitability Estimation |
Indian Rs. |
$ |
|
Indian Rs. |
$ |
|
| |
|
|
|
Fixed Expenses |
|
|
|
| |
Sales (Annexure F) |
48,510,000 |
1,102,500 |
Rent @Rs10/sq ft |
600,000 |
13,636 |
See Annexure A |
| |
Expenses |
40,352,699 |
917,106 |
Interest @16% |
1,573,699 |
35,765 |
Based on Annex B3 |
| |
Gross Profit / year |
8,157,301 |
185,393 |
Depreciation 20% |
867,000 |
19,704 |
Based on Annex B1 |
| |
|
|
|
|
----------- |
|
|
| |
|
|
|
|
3,040,699 |
69,106 |
|
| |
|
|
|
Variable Expenses |
|
|
|
| |
|
|
|
Raw Material |
31,680,000 |
720,000 |
See Annexure C |
| |
|
|
|
Salary & wages |
1,026,720 |
23,334 |
See Annexure D |
| |
|
|
|
Power |
2,728,080 |
62,001 |
See Annexure E |
| |
|
|
|
Insurance |
10,000 |
227 |
|
| |
|
|
|
Maintenance & Overhead |
1,267,200 |
28,800 |
|
| |
|
|
|
Promotional Expns |
600,000 |
13,636 |
|
| |
|
|
|
|
----------- |
|
|
| |
|
|
|
|
37,312,000 |
848,000 |
|
| |
|
|
|
|
|
|
|
| The Figures given are only for guidance |
| Actual prevailing costs must be considered |
| Costs will vary with location and suppliers |
| Plastemart and Smartech assume no responsibility for consequences arising out of adoption of the above figures |
| A |
Covered Area Required |
|
|
5,000 sq ft. |
|
|
|
| B1 |
Plant and Machinery |
|
|
Indian Rs. |
$ |
|
|
| 1 |
140 kg/hr HDPE Pipe Plant with Vaccum Callibration System |
|
|
3,000,000 |
68,181 |
|
|
| 2 |
Pipe Testing Equipment as per ISI 4984-1978 |
|
|
150,000 |
3,409 |
|
|
| 3 |
Chilling Plant |
|
|
500,000 |
11,363 |
|
|
| 4 |
Air Compressor |
|
|
45,000 |
1,022 |
|
|
| 5 |
Water Pump |
|
|
10,000 |
227 |
|
|
| 6 |
Scrap Grinder |
|
|
30,000 |
681 |
|
|
| 7 |
Taxes, packing, transportation, insurance, electricals, etc. |
|
|
600,000 |
13,636 |
|
|
| |
|
|
|
------------ |
|
|
|
| |
Sub Total |
|
|
4,335,000 |
29,522 |
|
|
| B2 |
Working Capital |
|
|
Indian Rs. |
$ |
|
|
| 1 |
2 month wages |
|
|
85,560 |
1,944 |
|
|
| 2 |
One Month Raw Material (link to category 64) |
|
|
2,640,000 |
60,000 |
|
|
| 3 |
15 days finished products + WIP |
|
|
2,000,000 |
45,454 |
|
|
| 4 |
1 Month Rent, Power, Mainteneace |
|
|
275,000 |
6,250 |
|
|
| |
|
|
|
------------ |
|
|
|
| |
|
|
|
5,000,560 |
113,649 |
|
|
| 5 |
10% unforseen capital |
|
|
500,056 |
11,364 |
|
|
| |
|
|
|
------------ |
|
|
|
| |
|
|
|
5,500,616 |
125,014 |
|
|
| B3 |
Total Capital |
|
|
Indian Rs. |
$ |
|
|
| |
Plant & Machinery |
|
|
4,335,000 |
98,522 |
|
Refer Annexure B1 |
| |
Working Capital |
|
|
5,500,616 |
125,014 |
|
Refer Annexure B2 |
| |
|
|
|
------------ |
|
|
|
| |
|
|
|
9,835,616 |
223,536 |
|
|
| C |
Raw Material |
|
|
Indian Rs. |
$ |
|
|
| |
Maximum Output |
|
|
140 kg/hr |
3 |
|
|
| |
Avg Output |
|
|
110 kg/hr |
2 |
|
|
| |
Raw Material for 500 working Hours |
|
|
55,000 kgs |
1,250 |
|
|
| |
Raw Material Price |
|
|
48 per kg |
1 |
|
|
| |
Raw Material cost per month |
|
|
2,640,000 per month |
60,000 |
|
|
| D |
Manpower |
|
|
Indian Rs. |
|
$ |
|
| |
|
Nos |
|
Avg Salary |
Total |
|
|
| |
Works Incharge |
1 |
|
8,000 |
8,000 |
181 |
|
| |
Sales Representative |
2 |
|
5,000 |
10,000 |
227 |
|
| |
Accountant |
1 |
|
4,500 |
4,500 |
102 |
|
| |
Office Staff |
2 |
|
3,000 |
6,000 |
136 |
|
| |
Security |
2 |
|
3,000 |
6,000 |
136 |
|
| |
Supervisor |
2 |
|
4,000 |
8,000 |
181 |
|
| |
Operators |
2 |
|
4,000 |
8,000 |
181 |
|
| |
Helpers |
6 |
|
2,800 |
16,800 |
381 |
|
| |
Lab Asst. |
1 |
|
4,000 |
4,000 |
90 |
|
| |
|
|
|
|
----------- |
|
|
| |
|
|
|
|
71,300 |
1620 |
|
| |
Bonus + Statutory Payments |
|
|
|
14,260 |
324 |
|
| |
|
|
|
|
----------- |
|
|
| |
|
|
|
|
85,560
Per Month |
1944 |
|
| E |
Power Consumption per month |
|
|
Indian Rs. |
|
|
|
| |
HDPE Pipe Plant |
|
104 |
KW |
|
|
|
| |
Chilling Plant (20 TR) |
|
20.86 |
KW |
|
|
|
| |
Compressor |
|
1.5 |
KW |
|
|
|
| |
Water Pump |
|
5.6 |
KW |
|
|
|
| |
Scrap Grinder |
|
5.6 |
KW |
|
|
|
| |
Addnl |
|
14 |
KW |
|
|
|
| |
|
|
-------- |
|
|
|
|
| |
Total |
|
151.56 |
KW |
|
|
|
| |
Based on 500 hours of operation and tarrif of Rs 5.00 per unit |
|
|
227,340 |
5,166 |
|
|
| F |
Sales |
|
|
Indian Rs. |
$ |
|
|
| |
Avg Selling Price |
|
|
75 per kg |
1 |
|
|
| |
Sales considering 2% wastage |
|
|
4,042,500 per month |
91,875 |
|
|
| |
As in Jun 2000 1$ = Rs 44.50 |
|
|
|
|
|
|
|