C O N T E N T S - Project · PDF fileCorrugated Board:- Corrugated fibre board consists of a...

PROJECT REPORT

on

CORRUGATED KRAFT PAPER BOXES

Submitted by:

__________________________________

__________________________________

__________________________________

C O N T E N T S

________________________________________________________

CHAPTER NOS. PARTICULARS SHEET NOS.

________________________________________________________ I. Project Summary

II. Introduction

III. About the Promoter

IV. Product Description

V. Market Potential

VI. Manufacturing Process & Process Flow Chart

VII. Economics of the Project Covering:-

Basis & Presumptions Land

Building & Structures Plant, Machinery & Equipment

Misc. Fixed Assets Total Cost of the Project

Means of Finance Term Loan, its repayment & interest schedule

Working capital & margin money

Staff & Labor requirements and their bill Raw Materials & Consumables

Power/water Depreciation

Repairs & Maintenance Insurance

Sales Expenses Projections of Performance & Profitability

Break-even-point Analysis Cash flow Statement

Projected Balance Sheet Debt-service Coverage Ratio

________________________________________________________

________________________________________________________

APPENDIX PARTICULARS SHEET NOS.

________________________________________________________

I. Sources of Plant & Machinery Availability

II. Sources of Raw Material

Availability

III. Existing Manufacturing Units

IV. Important Addresses

________________________________________________________

CHAPTER - II

PROJECT SUMMARY

1. Name of the Applicant :

2. Father’s/Husband’s Name :

3. Constitution :

4. Address :

5. Size of the Plot : 1000 sq.mts.

6. Location :

7. Covered Space : 500 sq.mts.

8. Proposed Project to be set-up : Corrugated Kraft Paper Boxes

9. Type of Industry : Paper Packaging

10. Major Raw Materials : Kraft Paper, Gum, Wire, Ink etc.

11. Employment Potential : 23 Persons

12. Power Load : 40 KW

13. Total Project Cost:-

a. Cost of Land : 5.50

b. Building & Structures : 18.75

c. Machinery & Equipments : 25.27

d. Misc. Fixed Assets : 4.85

e. Preliminary & Pre-

operative expenses : 4.41

f. Contingencies/Price-

escalation : 1.10

g. Margin Money for

Working Capital : 10.59 __________________

Total : Rs. 70.46 Lakhs

__________________

14. Means of Financing of the Project:-

a) Term Loan from Bank/State

Financial Corporation : 40.00

b) Promoters’ Contribution : 30.46

including Unsecured Loans from friends/relatives

__________________

Total : Rs. 70.46 Lakhs __________________

Promoters’ Share to Project Cost : 43.23%

Debt-service Ratio : 1.31 : 1

15. Annual Profitability (at

(60% efficiency, 1st year):-

a) Annual Sales Revenues : Rs.175.50 Lakhs

b) Net Profit : Rs. 10.47 Lakhs

c) Percentage Profit on Sales : 5.96%

d) Annual Return on Investment : 14.85%

e) Average Break-even-point : 49.17%

CHAPTER - II

INTRODUCTION

Corrugated Kraft Paper Board Box is the most popular shipping

container, now-a-days.

The boxes find their number of applications in the packaging of:

Packaged Drinking Water

Refined Vegetable Oils

Confectionery Products

Tobacco & it’s products,

canned & bottled goods,

food products,

lamps,

electrical appliances,

engineering goods,

Chemicals & drugs,

Stationery Items

glasswares etc.

CHAPTER – III

ABOUT THE PROMOTER

The promoter of the proposed unit is highly educated, financially sound

and possess rich experience in the same field. After thorough study of the

market demand of the project, he is keen to set up a manufacturing unit for

the same.

B I O – D A T A

Name :

Father’s Name :

Date of Birth/Age :

Address, residence :

Qualification :

Experience :

Financial Background :

CHAPTER - IV

PRODUCT DESCRIPTION & APPLICATIONS

Introduction

Corrugated Kraft Paper Board Box, technically called Corrugated

Fibre Board Box is the most popular shipping container, now-a-days. The

box is manufactured from corrugated board which consists of 3 or more

layers of kraft paper. The middle fluted layer is pasted with two flat

parallel sheets of paper. The boxes find their number of applications in the

packaging of chemicals & drugs, tobacco, engineering goods, canned &

bottled goods, food products, lamps, electrical appliances, glasswares etc.

Packaging plays a very important role in the country's economy.

Till recently only the western world, more particularily the developed

countries cared about proper packaging. However, now even developing

countries like India have changed their outlook towards packaging and in

the last few years increasing stress has been laid on improved and proper

packaging. In fact, today, packaging is as important as the contents.

Corrugated boards were first produced in India in early fifties. Since

then the production of Corrugated boards has increased steadily.

Corrugated boxes have replaced wooden boxes & crates in many

applications. Today, about 80% of all shipments in the world are being

made in fibre board boxes. In India, about 60% of the packaging is being

done with corrugated fibre board boxes.

Corrugated Board:-

Corrugated fibre board consists of a flat layer of paper sheet (liner)

glued on one or both sides of a corrugated paper (medium). The

corrugated board is made by passing two layers of paper (usually kraft)

through corrugating machine. One layer of paper becomes corrugated after

being passed thro' the heated rolls and other is brought into contact with

it after the former having glued at tips.

The corrugating 'medium' is generally made from a 0.009" thick (9

caliper) or 0.23 mm. The glue frequently used is starch or silicate of soda

adhesive. When only one liner is used, the product is known as "Single face"

or "two ply" board. This board is flexible in one direction. When the

corrugated medium is combined on both sides with flat sheets, it is known

as double faced or "3-ply board".

Advantages of Corrugated Fibre Board Boxes :-

Corrugated fibreboard boxes have replaced the wooden and tin

containers due to their several advantages for safe transportation of the

goods. These are discussed here under :

1) Light in weight (freight advantage)

2) Cellular structure with high compressive strength, resiliency & shock

resistance. Assured safety to delicate articles.

3) Can be stored conveniently in folded condition when not in use,

thus saving storage space.

4) Can be attractively printed, thus advertising

advantage.

5) By lining, lamination or coating, they can be made water resistant

and resistant to other adverse conditions.

6) Easy to fabricate.

7) Contents packed in these boxes remain dust free.

8) Available through out the year. .pa

9) Expedites production due to one line conveyor packing.

10) Re-usable

11) No strapping necessary

12) Desired in export market

13) Eliminated dependency on natural wood.

Applications:-

Corrugated fibre board boxes are being used for the packing of

industrial as well as consumer goods. They are used for packing of

chemicals, drugs, tobacco, engineering goods, canned and bottled

goods (such as Whisky, Beer, Soda, Drinking Water, Ketchups etc.), food,

electrical appliances, confectionary, textiles, fruits, vegetables,

potteries, footwear, glasswares and other fragile items, medical

instruments, photographic equipments and a number of other products.

The use-pattern of corrugated board containers is approximately as

follows :-

(%)

Chemicals & Drugs 20

Tobacco 20

Engineering Goods 10

Canned & bottles goods 10

Light Engg.Products & Lamps 8

Electrical products 5

Confectionery 3

Textiles 2

Other (including fruits, potteries etc.) 22

_____________

100

_____________

Some of the products where corrugated fibreboard boxes find

extensive application are:-

1. Pharmaceuticals.

2. Glassware, crockery ware 3. Soaps & Cosmetics

4. Biscuits 5. Hosiery & ready made garments

6. Electronic products

7. Breweries 8. Cigarettes

9. Footwears

10. Toys

11. Milk products & other food items 12. Tea & Coffee

13. Automobile components 14. Rubber & rubber products

15. Engineering items and consumer durable like refrigerators, TVs, Air Coolers, fans etc.

16. Stationary items

17. Match boxes 18. Frozen fish

19. Apple, cherry, grapes etc. 20. Cashew nut industry

It would not be an exaggeration if one states that practically every

product at some or the other stage, has to be packed in corrugated paper

board or box. Usually, at the manufacturer/wholesaler’s level the individual

units of a particular item are packed together in a carton/corrugated box for

the sake of convenience in handling/transporting.

The strength or weakness of corrugated paperboard depends upon the

member of ply, which vary from 2 ply to 9 ply. The higher the member of

the ply, the thicker and stronger will be the board. However, the strength

required will depend upon the purpose for which the corrugated board/box is

to be used. For example, to pack vials and tubes, a thinner quality or lesser

ply corrugated board would serve the purpose, while packing of a television

set or an air-conditioner will require a very sturdy corrugated box with

maximum ply. Similarly for electric lamps, a 2 ply flexible board is used.

The unit shall manufacture corrugated boxes of varying plys to suit

various needs.

Indian Standard

Specifications

Indian Standard Specifications:-

Bureau of Indian Standards (earlier known as Indian Standard

Institute, ISI) has published following Indian Standards on the industry:-

1. 2771 Fibre-board boxes

Part-1 Corrugated Fibre Board Boxes

Part-2 Solid fibre board boxes

2. 10066 Corrugated fibre board boxes for packing of Cigarettes.

3. 11844 Corrugated fibre board boxes for transport packaging of

apples.

4. 7151 Corrugated fibre board boxes of Internal dimensions 890 x

380 x 560 mm for para dropping of supplies

5. 7063 Methods of Test for Corrugated fibreboard

Part-1 Thickness of Board

Part-2 Edgewise crush resistance of board

Part-3 Water resistance of glue bond by immersion

Part-4 Determination of substance of the component papers after

separation.

However, for complete up-to-date information, it is advised to contact

Bureau of Indian Standards, Manak Bhawan, 9-Bahadur Shah Zafar Marg,

New Delhi-110002.

CHAPTER - V

MARKET POTENTIAL

The paper and paperboard industry has grown over the years to meet

the ever-increasing need for paper as well as paperboard. This industry is

more than a century old.

Specific statistics are not available in respect of production in the

small-scale sector. However, an important parameter for gauging the

market potential for the products envisaged in this scheme is to ascertain

the overall growth in the economy in general with particular reference to the

growth of user industries that require corrugated board/boxes.

A look at the user industries indicates that they have generally grown

over the years and as per indications will continue to growth in the coming

years as well.

Consequently, the demand for corrugated paper board/boxes will also

continue to be buoyant. A peculiar feature of this industry is that on the one

hand there are several units in the large as well as small-scale sectors, which

are sick and unable to function properly, while on the other-hand several

units are flushed with orders and are working to capacity.

An important factor for successful undertaking of corrugated paper

board/boxes is the capacity to procure orders from bulk users on contract

basis. Only large and regular orders will ensure stability to the unit.

Through the market potential for these products can be considered to

the fairly good, much will depend upon the marketing strategy adopted

by an individual entrepreneur.

CHAPTER - VI

MANUFACTURING PROCESS

The process of manufacture of corrugated fibreboard & boxes is quite

simple. The unit mainly comprises of two sections viz. corrugated board

making and box making section.

MANUFACTURE OF CORRUGATED BOARD

Corrugated board is made of a corrugated paper sheet of paper glued

to the facings of flat-paper, usually kraft. A corrugating machine is employed

for the corrugation of flat sheet and preparation of corrugated flexible 2 ply

board. The machine is called as single-face corrugating machine. One layer

of paper becomes corrugated after passing through the heated fluted rolls

and the other is brought in contact with the former having been glued at the

tips. These two sheets get pasted together and are wound in rolls. The

resulting roll is known as single face or 2-ply corrugated board.

By cutting this roll with board cutter machine; glueing the corrugated

side on pasting machine & then placing 3rd ply of paper over it, double

face or 3-ply corrugated board is produced. Similarly, board to board can

be pasted to form thicker boards i.e. 5-ply, 7-ply and 9-ply boards.

MANUFACTURE OF BOXES

The corrugated board produced as above is dried (for drying of glue)

and may now be processed further to produce-corrugated boxes.

The size of a box is always given in terms of the inside dimensions,

with the longer dimension (length) of the opening given first followed by

width and depth. The most economical box for a given cubic contents

has the proportions of 2:1:2 (L:W:D). However, other proportions may also

be used. For manufacturing boxes of any particular dimensions, it is first

decided as to how the blanks for the boxes should be cut to minimise the

wastage.

Calculation of Weight of a Box:-

Weight of the box is equal to area of the sheet multiplied by

weight/cu.m. the sheet.

Area of sheet (i) Length of the sheet required, 'a'

= 2L + 2W + 2 inches.

(ii) Width of the sheet required 'b'

= W + H

Where L = Length of the box

W = Width of the box

H = Height of the box

2" is the stitching margin.

Weight/sq.m. of sheets :

It will depend upon the number of plies & g.s.m. (grams/sq.m.) of

paper. For the corrugating media, on an average 45% extra material is

consumed compared with the plain one depending upon the size of flute.

So, weight per sgm. of a 3 ply board would be as follows :-

gsm of top liner +(1.45 x gsm of media) + gsm bottom liner.

Fabrication of Boxes:

The various steps involved in the fabrication of corrugated fibre

board boxes are: Slitting & creasing; slotting; flap or corner cutting and

stitching or gluing. simultaneously carried over a rotary cutting &

creasing machine. The trimmed and creased sheet is slotted and flap out on

an eccentric slotter. Finally, it is either stitched using stiching machine or

glued/taped manually. The boxes are shiped in the form of flat tube which

is set up and closed by the packer.

Printing:

There are different methods of printing the corrugated boxes.

Some of the small scale manufacturers are printing the boxes after

fabrication, by the technique of screen printing. However, printing can be

done in a printer slotter machine. In this machine, the blanks are printed

using soft rubber dies and the body score or vertical score and slots are

introduced in the board.

Printing can also be performed on the paper sheet, before making

corrugated sheet/board. The layer of paper which will come outside of

the box, is printed on flexographic machine.

PROCESS FLOW CHART

Corrugated Sheets Corrugating Plant

|

| V

Printing

| |

V Printed Paper Sheets

| |

V Cutting Board Cutter

| |

V Glueing (at tips) Sheet Pasting Machine

| |

V

3-ply board |

| V

Cutting Cutting & Creasing Machine |

| V

Creasing |

| V

Slotting Slotter |

|

V Stitching Stitching Machine

| |

V Finished Product

Economics

of

the Project

CHAPTER - V

ECONOMICS OF THE PROJECT

a. Basis & Presumptions:-

No. of working days/year : 300

No. of shifts/day : Single

No. of working hours/shift : 8

b. Product(s) Mix,Capacity & Its Utilisation:-

Finished Product(s) : Corrugated Kraft Paper Boxes

Average Selling Price : Rs.32,500 per ton

Annual Installed Capacity : 900 tons

Capacity Utilisation :

First year of operation : 60 %

Second year of operation : 65 %

Third year of operation : 70 %

Forth year of operation : 75 %

Fifth year onwards years

of operation : 80 %

c. Land:-

Industrial Plot

a. Plot Size : 1000 sq.mts

b. Location :

c. Rate of Land : Rs. 500/- per sq.mt

d. Cost of Plot : Rs. 5.00 Lakhs

e. Registration etc. Exps. : Rs. 0.50 Lakh

________________

Total Rs. 5.50 Lakhs

________________

d. Cost of Building & Structure:-

a. Works : 300 sq.mts

b. Stores : 150 sq.mts

c. Office : 50 sq.mts

Total : 500 sq.mts

Cost of construction : Rs. 3500.00 per sq.mt.

: Rs. 17.50 Lakhs

d. Misc. Civil Works like Boundry wall,

Security Cabins, Parking Sheds, Inner-Outer Approach Roads etc.: Rs. 1.25 Lakhs

________________

Total Rs. 18.75 Lakhs ________________

e. Plant & Machinery:- Following plant, machinery and equipment are required for the

proposed project:- _____________________________________________________________

S.No. Description Qty. Rate Amount (Nos.) (Rs.Lakhs)

_____________________________________________________________

A. Corrugating Unit

1. Single Face Corrugating M/c 1 3.00 3.00

2. Slitting Attachment with cutter1 0.18 0.18 3. Board Cutter, 62” x 62” 1 0.26 0.26

4. Sheet Pasting Machine 1 0.44 0.44

B. Box Making Unit

1. 4-Bar Rotary Cutting & Creasing M/c, 95” 1 1.95 1.95

2. Eccentric Slotter, 42” 1 1.95 1.95 3. Partition Slotter, 42” 1 0.45 0.45

4. Stitching Machine, 30” 1 0.25 0.25

5. Stitching Machine, 36” 1 0.30 0.30 6. Vertical Bending Machine, 72”1 1.40 1.40

7. Single Slotting Machine, 12” 1 0.15 0.15

C. Printing Unit

1. Multi-colour Offset Printing M/c1 10.00 10.00 2. Screen Printing Equipment 1 0.50 0.50

D. Testing Equipment

1. Brusting Strength Factor Tester1 0.30 0.30

2. Graqmmage Tester 1 0.05 0.05 3. Compression Strength Tester 1 1.50 1.50

4. Puncture Resistance Strength M/c1 0.30 0.30

_____________________________________________________________

Rs..22.97 Lakhs

Cost of installation, erection, commissioning Taxes, Freight Insurance etc. 10% Rs.. 2.30 Lakhs

_____________________________________________________________

Total Rs. 25.27 Lakhs _____________________________________________________________

f. Misc. Fixed Assets:-

Additionally, following misc. fixed assets are required for the proposed project:-

(Rs.Lakhs)

a. Standby Gen Set, 40 KVA : 2.25

b. Electrification Expenses and

Electrical Equipments : 0.75

c. Weighing Machine : 0.20

d. Maintenance Tools & Equipment : 0.05

e. Office Furniture & Equipment : 0.75

f. Fire Fighting & Other Safety Equipments : 0.50

g. Delivery Rickshaw : 0.10

h. Misc. : 0.25

__________________

Total Rs. 4.85 Lakhs __________________

g. Total Cost of the Project :- a. Cost of Land : 5.50

b. Building & Structures : 18.75

c. Machinery & Equipments : 25.27

d. Misc.Fixed Assets : 4.85

e. Preliminary & Pre- operative expenses : 4.41

f. Contingencies/Price-

escalation : 1.10

g. Margin Money for Working Capital : 10.59

__________________

Total : Rs. 70.46 Lakhs

__________________

h. Means of Financing of the Project:-

It is proposed to finance the project as follows:-

a) Term Loan from Bank/State Financial Corporation : 40.00

b) Promoters’ Contribution : 30.46 including Unsecured Loans

from friends/relatives

__________________

Total : Rs. 70.46 Lakhs __________________

Promoters’ Share to Project Cost : 43.23%

Debt-service Ratio : 1.31 : 1

i. TERM LOAN :

: Rs.Lakhs

S.No. Description Value Term Loan

1. Land 5.50 75 % 4.13

2. Building & Structure 18.75 75 % 14.06

3. Machinery & Equipment 25.27 75 % 18.95

4. Misc. Fixed Assets 4.85 75 % 3.64

5. Contingencies/Price Esc. 1.10 75 % 0.82

Term Loan Eligibility 55.47 Rs. 41.60 Lakhs

Term Loan to be applied

for

Rs. 40.00 Lakhs

j. TERM LOAN, ITS REPAYMENT AND INTEREST SCHEDULE :

Term Loan : Rs.40.00 Lakhs

Repayment Period : 4 Years

Moratorium Perod : 12 months

Annual Interest Rate : 10.50 % p.a.

Year/

Month

Opening

Balance

Install-

ment

Closing

Balance

Interest

I Year 1 4000000 0 4000000 35000 2 4000000 0 4000000 35000

3 4000000 0 4000000 35000 4 4000000 0 4000000 35000

5 4000000 0 4000000 35000 6 4000000 0 4000000 35000

7 4000000 0 4000000 35000 8 4000000 0 4000000 35000

9 4000000 0 4000000 35000 10 4000000 0 4000000 35000

11 4000000 0 4000000 35000 12 4000000 0 4000000 35000

0 420000

II Yr. 1 4000000 83333 3916667 34635

2 3916667 83333 3833333 33906 3 3833333 83333 3750000 33177

4 3750000 83333 3666667 32448 5 3666667 83333 3583333 31719

6 3583333 83333 3500000 30990 7 3500000 83333 3416667 30260

8 3416667 83333 3333333 29531 9 3333333 83333 3250000 28802

10 3250000 83333 3166667 28073 11 3166667 83333 3083333 27344

12 3083333 83333 3000000 26615 1000000 367500

j.. TERM LOAN, ITS REPAYMENT AND INTEREST SCHEDULE

(Contd…)

Year/ Month

Opening Balance

Install-ment

Closing Balance

Interest

III Yr. 1 3000000 83333 2916667 25885 2 2916667 83333 2833333 25156

3 2833333 83333 2750000 24427 4 2750000 83333 2666667 23698

5 2666667 83333 2583333 22969 6 2583333 83333 2500000 22240

7 2500000 83333 2416667 21510

8 2416667 83333 2333333 20781 9 2333333 83333 2250000 20052

10 2250000 83333 2166667 19323 11 2166667 83333 2083333 18594

12 2083333 83333 2000000 17865 1000000 262500

IV Yr. 1 2000000 83333 1916667 17135 2 1916667 83333 1833333 16406

3 1833333 83333 1750000 15677 4 1750000 83333 1666667 14948

5 1666667 83333 1583333 14219 6 1583333 83333 1500000 13490

7 1500000 83333 1416667 12760

8 1416667 83333 1333333 12031 9 1333333 83333 1250000 11302

10 1250000 83333 1166667 10573 11 1166667 83333 1083333 9844

12 1083333 83333 1000000 9115 1000000 157500

j. TERM LOAN, ITS REPAYMENT AND INTEREST SCHEDULE (Contd…)

Year/

Month

Opening

Balance

Install-

ment

Closing

Balance

Interest

V Yr. 1 1000000 83333 916667 8385

2 916667 83333 833333 7656 3 833333 83333 750000 6927

4 750000 83333 666667 6198 5 666667 83333 583333 5469

6 583333 83333 500000 4740 7 500000 83333 416667 4010

8 416667 83333 333333 3281

9 333333 83333 250000 2552 10 250000 83333 166667 1823

11 166667 83333 83333 1094 12 83333 83333 0 365

1000000 52500

k. WORKING CAPITAL REQUIREMENTS :

Ist Year 60 Percent Capacity Utilisation

a Raw Materials 15 days Rs. 6.58 Lakhs

b. Work in progress 7 days Rs. 3.21 Lakhs

c. Finished Goods in stock 10 days Rs. 4.85 Lakhs

d. Accounts Receivables 45 days Rs. 26.33 Lakhs

e. Misc. Expenses 30 days Rs. 1.38 Lakhs


Working Capital Required

Rs. 42.34 Lakhs

Bank Finance Rs. 31.76 Lakhs

Margin Money Rs. 10.59 Lakhs


Contd.








Working Capital

Required

Rs. 45.58 Lakhs




Contd.








Working Capital

Required

Rs. 49.18 Lakhs




Contd.








Working Capital

Required

Rs. 5276 Lakhs



l. STAFF & LABOUR REQUIREMENTS AND ANNUAL SALARIES/WAGES BILL :

S.No. Designation Nos. Rate, Annual Bill

Rs.p.m. Rs.Lakhs a. Office Staff

1 Accountant 1 10000 1.20

2 Sales & Marketing 2 7500 1.80

3 Peon/Watchman 1 5500 0.66 2.34

4

b. Supervisory

1 Supervisor 1 10000 1.20 0.90

c. Factory

1 Skilled Workers 3 7500 1.80

2 Semi-skilled Workers 9 6500 4.32

3 Unskilled Labour 6 5500 2.52 8.64

18 11.88

25% benefits 3.92

23 Rs. 15.80 Lakhs

m. ANNUAL COST OF RAW MATERIALS, CONSUMABLES & PACKAGING MATERIALS (at 100% efficiency)

Following Raw Materials, Consumables & Packaging materials are required for the proposed project:

S.No. Description Amount (Rs.Lakhs)

1. Kraft Paper }

(various grammage)

2 Printing Ink }

3 Stitching Wire }

4 Binding Cloth }

5 Adhesive Tape }

6 Adhesives }

7 Misc.Consumable Stores }

8 Packing Materials }

Cost of raw materials, consumables and packing materials is assumed at 75.00 % sales revenues, that works out to


n. ANNUAL COST OF UTILITIES (POWER & WATER) (at 100% efficiency)

a. Power

Total Load 40 KW

Consumption Load x 8 x 300 x 0.7

Hrs. x Days x Power Factor

67200 KWH

Power Rate Rs. 4.50 KWH

Total Power Bill Rs. 3.02 Lakhs

b. Water

Water 450 KL @ Rs. 8.00 Per KL

Rs. 0.04 Lakh

Total Power & Water Bill

Rs. 3.06 Lakhs

o. DEPRECIATION CHART

Building & Structure : Rs. 18.75 Lakhs

Machinery & Equipment : Rs. 25.27 Lakhs

Misc.Fixed Assets : Rs. 3.85 Lakhs

S.

N.

Description Rate 1st

Year

2nd

Year

3rd

Year

4th

Year

5th

Year

1. Building &

Structure Depreciation Rate

10%

18.75

1.88

16.88

1.69

15.19

1.52

13.67

1.37

12.30

1.23

16.88 15.19 13.67 12.30 11.07

2. Machinery &

Equipment Depreciation Rate

15%

25.27

3.79

21.48

3.22

18.26

2.74

15.52

2.33

13.19

1.98

21.48 18.26 15.52 13.19 11.21

3. Misc.Fixed Assets

Depreciation Rate

15%

4.85

0.73

4.12

0.62

3.50

0.53

2.98

0.45

2.53

0.38 4.12 3.50 2.98 2.53 2.15

Total Depreciation 6.39 5.53 4.78 4.14 3.59

p. REPAIRS & MAINTENANCE

S.N. Description 1st

Year

2nd

Year

3rd

Year

4th

Year

5th

Year

1. Building & Structure Repairs/Maintenance

Rate (%) Amount (Rs. Lakhs)

18.75

0.50 0.09

16.88

1.00 0.17

15.19

1.50 0.23

13.67

2.00 0.27

12.30

2.50 0.31

2. Machinery & Equipment

Repairs/Maintenance

Rate (%) Amount (Rs. Lakhs)

25.27

0.50 0.13

21.48

1.00 0.21

18.26

1.50 0.27

15.52

2.00 0.31

13.19

2.50 0.33

3. Misc. Fixed Assets

Repairs/Maintenance Rate (%)

Amount (Rs. Lakhs)

4.85

0.50

0.02

4.12

1.00

0.04

3.50

1.50

0.05

2.98

2.00

0.06

2.53

2.50

0.06

Total 0.24 0.42 0.55 0.64 0.70

q. INSURANCE

The fixed assets of the project will be insured for all types of

risks. Annual insurance charges payable shall be as under:-

S.N. Description 1st Year

2nd Year

3rd Year

4th Year

5th Year

1. Building & Structure 18.75 16.88 15.19 13.67 12.30

2. Machinery & Equipment 25.27 21.48 18.26 15.52 13.19

3. Misc. Fixed Assets 4.85 4.12 3.50 2.98 2.53

Total 48.87 42.47 36.95 32.16 29.02

Insurance Charges :

Rate (%) 1.00 1.50 2.00 2.50 3.00

Amount (Rs.Lakh) 0.49 0.64 0.74 0.80 0.84

r. SALES EXPENSES

Sales Expenses include brokerage, commission, discounts etc.

They are assumed at 1.75 percent of sales revenues

Rs.Lakhs

Year Sales Selling Expenses

1st 175.50 3.07

2nd 190.13 3.33

3rd 204.75 3.58

4th 219.38 3.84

5th 219.38 4.10

s. PROJECTIONS OF PERFORMANCE AND PROFITABILITY STATEMENT

Rs.Lakhs

1st Year

2nd Year

3rd Year

4th Year

5th Year

Capacity Utilisation

(%)

60 65 70 75 75

A Annual Sales Revenues

Value Rs. Lakh 175.50 190.13 204.75 219.38 219.38

B. Cost of Sales

a. Raw Materials, Consumables &Packing

Materials

131.63 142.59 153.56 164.53 175.50

b. Power/Water 1.84 1.99 2.14 2.30 2.45

c. Salaries & Wages * Salaries 4.31 4.74 5.21 5.74 6.31

Wages 6.89 8.22 8.85 9.48 10.11

d. Repairs & Maintenance 0.24 0.42 0.55 0.64 0.70

e. Insurance 0.49 0.64 0.74 0.80 0.84

f. Depreciation 6.39 5.53 4.78 4.14 3.59

151.79 164.13 175.84 187.63 199.50

Cost of Sales 151.79 164.13 175.84 187.63 199.50

* 10% increase every year

s. PROJECTIONS OF PERFORMANCE AND PROFITABILITY STATEMENT Rs.Lakhs

Contd. 1st

Year

2nd

Year

3rd

Year

4th

Year

5th

Year

Capacity Utilisation (%) 60 65 70 75 75

C Gross Profit 23.71 26.00 28.91 31.74 34.50

Selling Expenses 3.07 3.33 3.58 3.84 4.10

Overheads @ 1.76 1.90 2.05 2.19 2.19

Preliminary & Pre-operative

Expenses w/off

0.88 0.88 0.88 0.88 0.88

Financial Expenses:

a. Interest on term loan 4.20 3.68 2.63 1.58 0.52

b. Interest on Working Capital Loan

3.33 3.59 3.87 4.15 4.15

D. Profit (before taxes) 10.47 12.62 15.90 19.10 22.50

E. Provision for Taxes 20% 3.45 4.17 5.25 6.30 7.43

F. Profit (after taxes) 7.01 8.46 10.65 12.80 15.08

Depreciation, added back 6.39 5.53 4.78 4.14 3.59

G. Cash Accruals: 13.41 13.98 15.43 16.94 18.67

@ Telephone Bills, Postage/Courier Expenses, Travelling/Conveyance, Bank Charges/Commissions, Publicity etc. considered as 1%

of Annual Sales Revenues

t. BREAK-EVEN-EFFICIENCY ANALYSIS

Rs.Lakhs 1st

Year

2nd

Year

3rd

Year

4th

Year

5th

Year

Capacity Utilisation (%) 60 65 70 75 75

A. Sales 175.50 190.13 204.75 219.38 219.38

B. Variable Costs

a. Raw Materials, Consumables & Packing Materials

131.63 142.59 153.56 164.53 175.50

b. Power/Water 1.84 1.99 2.14 2.30 2.45

c. Wages 6.89 8.22 8.85 9.48 10.11

d. Intt.on Working Capital Loan 3.33 3.59 3.87 4.15 4.15

e. Sales Expenses 3.07 3.33 3.58 3.84 4.10

Total 146.76 159.72 172.01 184.30 196.31

C. Fixed Costs

a. Salaries 4.31 4.74 5.21 5.74 6.31

b. Admn. Overheads 1.76 1.90 2.05 2.19 2.19

c. Repairs & Maintenance 0.24 0.42 0.55 0.64 0.70

d. Insurance 0.49 0.64 0.74 0.80 0.84

e. Interest on term loan 4.20 3.68 2.63 1.58 0.52

f. Depreciation 6.39 5.53 4.78 4.14 3.59

Total 28.74 16.91 15.96 15.09 14.30

D. Contribution 28.74 30.41 32.74 35.07 37.69

E. Break-even-efficiency (%) 60.51 55.59 48.75 43.03 37.95

Average Break-even-efficiency 49.17

u. CASH FLOW STATEMENT

Rs.Lakhs

Const. Period

1st Year

2nd Year

3rd Year

4th Year

5th Year

A Sources of Funds

Increase in Share Capital

30.46 0.00 0.81 0.90 0.89 0.00

Increase in

Working Capita Borrowings

40.00 0.00 0.00 0.00 0.00 0.00

Profit before tax

with Interest

added back

0.00 31.76 2.43 2.70 2.68 0.00

Preliminary Exps.w/off

0.00 0.88 0.88 0.88 0.88 0.88

Depreciations 0.00 6.39 5.53 4.78 4.14 3.59

70.46 57.03 29.53 31.66 33.43 31.65 B Disposition of

funds

Preliminary & Pre-

operative Expenses

4.41 0.00 0.00 0.00 0.00 0.00

Increase in capital

expenditure

55.47 0.00 0.00 0.00 0.00 0.00

Increase in current

assets

0.00 42.34 3.24 3.60 3.58 0.00

Interest 4.20 3.68 2.63 1.58 0.52 59.88 50.00 21.08 21.47 21.45 17.95

C Opening Balance 0.00 10.59 17.62 26.08 36.27 48.24

D Net Surplus 10.59 7.04 8.46 10.19 11.97 13.70 E Closing Baalnce 10.59 17.62 26.08 36.27 48.24 61.94

v. PROJECTED BALANCE SHEET

Rs.Lakhs

Const. Period

1st Year

2nd Year

3rd Year

4th Year

5th Year

A Sources of Funds

Share Capital 30.46 30.46 31.27 32.17 33.07 33.07 Add:Profits 0.00 7.01 15.47 23.93 32.98 40.84

Net Worth 30.46 37.48 46.74 56.10 65.45 73.90 Loans

Term Loan 40.00 40.00 30.00 20.00 10.00 0.00 Bank Borrowings 0.00 31.76 34.18 36.89 36.89 36.89

Sundry Creditors 0.00 0.00 0.00 0.00 0.00 0.00

Other Current

Liabilities

0.00

1.96

5.32

11.24

22.27

33.05

70.46 111.19 116.25 124.23 134.61 143.84

B Application of funds

Fixed Assets Gross Block 49.97 49.97 49.97 49.97 49.97 49.97

Depreciations 0.00 6.39 5.53 4.78 4.14 3.59 Net Block 49.97 43.57 38.05 33.26 29.12 25.53

Plot/Land 5.50 5.50 5.50 5.50 5.50 5.50 Current Assets

Inventories 0.00 14.64 15.46 16.72 17.96 17.96 Sundry Debtors 0.00 26.33 28.52 30.71 32.91 32.91

Preliminary Exp. Not w/off

4.41 3.53 2.65 1.76 0.88 0.00

Cash & Bank Bal. 10.59 17.62 26.08 36.27 48.24 61.94

Other Current Assets

0.00

0.00

0.00

0.00

0.00

0.00

70.46 111.19 116.25 124.23 134.61 143.84

v. DEBT SERVICE COVERAGE RATIO

Rs.Lakhs 1st

Year

2nd

Year

3rd

Year

4th

Year

5th

Year

Profit after tax 10.47 12.62 15.90 19.10 22.50

Depreciation 6.39 5.53 4.78 4.14 3.59

Interest on term loan 4.20 3.68 2.63 1.58 0.52

Total Coverage 21.06 21.82 23.30 24.82 26.62

Loan Repayment 0.00 10.00 10.00 10.00 10.00

Interest on term loan 4.20 3.68 2.63 1.58 0.52

Total Loan Liability 4.20 13.68 12.63 11.58 10.53

DSCR 5.01 1.60 1.85 2.14 2.53

Average DSCR 2.63

APPENDICES

(Addresses)

APPENDIX - I

SOURCES OF PLANT & MACHINERY AVAILABILITY

Corrugated Kraft Paper Boxes making Machinery:

Natraj Industries

Plot No.65, Sector-6, Faridabad (Haryana)-121006.

Tel.: 0129-2241403/404, 4001259

Fax : 0129-2243403 E-mail: [email protected]

Website:www.natrajindustries.com

Neelkanth Machinery Co.

Plot No.44, Sector-4 Industrial Area

Faridabad-121 004 Tel.: 0129-2242516, 2241580

Fax : 0129-2243069 E-mail: [email protected]

Website:www.neelkanthmachinery.com

Sidhartha Machinery Co. 406, Usha Kiran Building

Commercial Complex Azadpur, Delhi-110033

Tel.: 65976383 Cell : 9811755369

E-mail: [email protected] Website:www. sidharthamachinery.com

Nagpal Packaging Machinery Pvt. Ltd. B-7, Sector-59, Phase-II

23rd Milestone, Mathura Road Ballabhgarh, Faridabad-121 064

Tel.: 0129-2307700, 230 7800, 4067600

Fax : 0129-4067500 Cell.: 93122 73576

Website:www.nagpalmachinery.com

Natraj Machinery P.Ltd.

Plot No.66, Sector-27C, Faridabad (Haryana)-121003.

Tel.: 0129-2276060/2093 Fax: 0129-2274471

E-mail: [email protected] Website:www.natrajmachinery.com

Micro Mechanical Works,

B.Kumar Compound, Lal Bahadur Shastri Marg,

Vikhroli,

Mumbai - 400083.

Perfect Paper Machines, 34, Phase-II, Scheme-II,

Okhla Industrial Area, New Delhi - 110020.

Paper Board Machinery Company,

Plot No.115, Part - I, DLF Industrial Area,

Faridabad - 121003. (Haryana).

G.K.Hydraulic & Engineering Works 21/4, G.K. Estate, M Road,

Rishi Nagar, Mathura Road, Ballabhgarh, Distt.Faridabad.

(Haryana) Cell.: 93137-42381

Tel.: 2241702/2246583 Fax: 2246023

Printpack Engineers, 20, Gujrat Vihar,

Vikas Marg,

New Delhi - 110002.

Sheth Brothers, F-1/16, Ansari Road,

Darya Ganj, New Delhi - 110002.

Tel.:3272753

Micro Machinery Co. Pvt.Ltd.,

Lake Road, Bhandup, Mumbai - 400078.

Authorised Distributors :- R.V.Agencies,

29/23, Shakti Nagar, Delhi - 110007.

Phone - 7129099

Micro Mechanical Industries Pvt.Ltd., Fitwell House,

Lal Bahadur Shastri Marg, Vikhroli, Mumbai - 400083.

GRAM : 'MICROSHER' Authorised Distributor :-

Shah Machinery Sales Corpn., 233, 32-A Cross,

II Main Road, Opp. Holy Mother School,

Jayanagar VII Block, Bangalore - 560081.

Rosy Mechanical Works,

Plot No.A-15, Shahzada Bagh Extension, Dayabasti,

Old Rohtak Road, Delhi - 110035.

Tel.: 2541 7686

Samrat Rolwel India,

14-B, 8771, Shidi Pura, Karol Bagh,

New Delhi - 110005.

Surjeet Mechanical Works,

106, Shivpuri,

Near Chander Nagar. Delhi - 110051.

Surjeet Engineering Company

B-138, Sector-63, Noida (U.P.) Tel.: 0120-4317391/92

Mobile: 98110 13324 E-mail: [email protected]

www.surjeetengineering.net www.surjeetengineering.in

Modern Engg. Company Plot No. 44, Sector-4

Faridabad (Haryana) Tel.: 0129-242516

Fax : 243 059

Sond Engineering Works, 442/8, G.T.Road,

P.O.Golden Temple, Amritsar - 110051.

(Punjab).

Sadana Brothers,

254, East Mohan Nagar, Amritsar - 143001.

Premier Engineering Works,

22, Gurdwara Darshan Singh Pheruman, Miller Ganj, G.T.Road,

Ludhiana (Punjab).

FEC Machines Pvt.Ltd.,

Mehta Road, Maqboolpura,

Amritsar (Punjab).

Shree Karishna Engineering Works,

Begampura, Kinkhabwala Wadi,

Behind Surat Cotton Mills,

Surat - 395 003.

Mahajan Machinery Works 27/5/3 F-1, Church Road

Jwala Nagar, Shahdara Delhi-110032

Tel.: 2415355, 2246670

Graduate Paper Board Machinery Company

Plot No. 115, DLF Industrial Area Faridabad-121 003

Tel.: 0129-275394

Offset Printing Machine:

Bombay Offset Printers,

Computer Forms Machinery Division, Post Box 6591, Worli,

Mumbai - 400018.

Indo European Machinery Co.Pvt.Ltd., Sambava Chamber,

Sir P.M.Road, Fort, Mumbai - 400001.

Delhi Office :- Kuncha Ustad Dagh,

Chandni Chowk,

Delhi - 110006.

Alois Gutenberg Machine Pvt.Ltd., Post Box No.457,

Wagle Post Office, Thane - 400604.

(Maharashtra).

Raghubeer Machinery Pvt.Ltd., Gurgaon - 122015.

(Haryana).

Bandhu Technical Services, 8-B, Bahadur Shah Zafar Marg,

New Delhi - 110002.

Multitech Aids (P) Ltd., 200, Sector - 24,

Faridabad - 121005. (Haryana).

APPENDIX - II

SOURCES OF RAW MATERIAL AVAILABILITY

1. Kraft Paper:-

Coastal Papers Ltd.

Industrial Development Area Madhavareyudupalem-533 126

Near Kadiam (R.S.)

Kadiam Mandalam East Godavari Distt.

Andhra Pradesh Tel.: 5348, 5423

Cauvery Papers Ltd.

Sathyagala, Kollegal Taluk Mysore District - 571 498.

Karnataka. Tel.: 7241/7231

B.G. Shirke Construction Technology Ltd. (Shirke Paper Division)

Survey No.483 Shirwal, Tal.Khandala

Distt. Satara - 412801 Maharashtra.

Tel.: 02167-44106, 44176

Ballarpur Industried Ltd. (Unit Ashti)

Tehsil Chamarsi Village : IllUR

Distt. Gadchiroli - 442707

Maharashtra. Tel.: 07135-44129, -44147

The Andhra Pradesh Paper Mills Ltd.

Rajahmundry - 533105 Easta Godawari District

Andhra Pradesh Tel.: 0883-71831/71838

Tlx : 0474-202 (APPMIN) Fax : 0883-61764

Amravathi Shri Venkatesh

Paper Mills Ltd., P.O.Udumalpeth,

Madathulola, Tamilnadu.

Associated Pulp & Paper Mills Ltd., B Jadav Chambers,

2nd floor, Ashram Road, Ahmedabad - 380009.

Chemopulp Issues,

A-4, Sector CX-II, Meerut Road,

Ghaziabad (U.P.)

Sirpur Paper,

Sirpur, Kaghaznagar.

Rohtas Industries Ltd.,

Dalmianagar.

India Paper Pulp Co.Ltd., 8, Clive Row,

Kolkata.

Ballarpur Industries Ltd.,

(Shree Gopal Division), Thapar House,

124, Janpath, New Delhi.

Mysore Paper Mills Ltd., Bhadravati.

2. Gum Tape:-

Million Tape Manufacturing Co.,

2640, Hamilton Road,

Kashmere Gate, Delhi - 110006.

Natraj Paper Industries,

38/46, Nagdevi Street, Mumbai - 400003.

3. Gum:-

Vijay Adhesives Industries,

6, Friends Colony,

G.T.Road, Shahdara, Delhi - 110032.

Synthetic Glue Chemicals Ltd.,

D-104, Industrial Area, Bulundshaher Road,

Ghaziabad (U.P.).

Corn Products Co.(India) Pvt.Ltd., Shree Niwas House,

Hazarimal Somari Marg,

P.O.Box No.994, Mumbai.

Synthetic Glue & Chemicals

Industries, 21, Goenka Lane,

Kolkata.

4. Stitching Wire:

Pearls Products, Amar Hill,

Saki Vihar Road, Powai, Mumbai.

Universal Wire Manufacturing Co., 61/63, Jalan Wadai,

Gokhle Road, Dadar, Mumbai.

United Export Trading Co.,

512, Loha Bhawan, P.O.Mello Road,

Mumbai.

Standard Traders (India),

202, Himalaya House, Palton Road,

Mumbai.

Saif Steel Traders, Steel House,

10/14, Janjikar Street, Mumbai - 3.

J.R.Desai & Co.,

71-73, Chakla Street,

Mumbai.

5. Printing Ink:-

Graphichem Sales, Bhupender Bhawan,

Karishma Market, Paharganj, New Delhi - 110055.

Rainbow Ink & Varnish

Manufacturing Co.Pvt.Ltd., D-7, Sector - III,

Noida (U.P.).

Roopson,

1274/4/C, Baidwara, Delhi - 110006.

Coats of India Limited,

Transport Depot Road, Kolkata - 700088.

B.K.Ink Enterprise,

C/2, 2, Ambawadi,

Udyoganagar, Wadwan (Gujarat).

Beco Chemicals (P) Ltd.,

25, Brabourne Road, Kolkata - 700001.

Bengal Chemicals,

6, Ganesh Chandra Avenue, Kolkata - 700013.

Colour Inks (P) Ltd.,

136, Lakshimi Building, A-Mudaliar Road,

Bangalore - 2.

APPENDIX - III

EXISTING MANUFACTURERS

There are numerous units engaged in the manufacture of

Corrugated Kraft Paper Boxes all over the country, Some of them near Delhi are given hereunder:-

Grover Packaging Industries RZ-44B/6, Tughlakabad Extn.

New Delhi-110019 Tel.: 55732877

Fax: 26069416 Cell.: 98181 83811, 9818791694

Kiran Packaging Industries

Plot No.26, Sector-25 Faridabad-121 004 (Haryana)

Cell.: 9811228654

Krishna Packaging 161-DSIDC Sheds

Okhla Industrial Area, Phase-I New Delhi-110020

Tel.: 26811438, 26371034, 55635217 Cell.: 9871606227 (Mr.Vijay Grover)

Kwality Packing Products

Bisokhar Road Modi Nagar-201 201 (U.P.)

Tel.: 02132- 233028

K.S. Enterprises

Unit-1:D-183, Sector-63, Noida Tel.: 0120-95120-2400077

Fax : 0120-95120-5542187 Mobile: 98110 74833 (Mr.Arvinder Singh)

E-mail: [email protected] Unit-2: 330-Chattarpur, New Delhi-110030

Negi Packers

D-230, Sector-10 Noida-201 301, Distt.G.B.Nagar (U.P.)

Cell.98100 50344 Tel.: 95120-2537993.

Pack (India) Industries

31-DSIDC Shed, Scheme-II Okhla Industrial Area

New Delhi-110020

Paramount Box Manufacturers C-57/1, Okhla Industrial Area

Phase-II, New Delhi-110020 Tel.: 26384215, 55601029, 26385688, 26388132

Cell.: 98102-62423

Suraj Packaging Company

39-Channamal Park Rohtak Road

New Delhi-110026 Tel.: 28314650, 28312752

Cell.: 9311396900, 9811396900

APPENDIX - IV

IMPORTANT ADDRESSES

Indian Institute of Packaging, E-2, MIDC Area,

P.B.No.9432, Chakala, Andheri (East),

Mumbai- 400093.

Delhi Office :- 21-Functional Industrial Estate

Patparganj Delhi-110092

Tel. : 2216 6703/4/5 Telefax: 2216 9612

E-mail : [email protected] www.iip.in.com

Corrugated Box Manufacturers Association

138, Mittal Industrial Estate No.3 Andheri (East)

Mumbai- 400059.

Bureau of Indian Standards

Manak Bhawan 9, Bahadurshah Zafar Marg,

New Delhi - 110002. Tel.: 2323-0131, -3375, -9402

Fax : 91-11-2323-4062, -9399, -9382.

Federation of Corrugated Box Manufacturers Association, 214, Mittal Industrial Estate No.3,

M. Vasanji Road,

Andheri (East), Mumbai - 400059.

Northern India Corrugated Box Manufacturers Association,

Karampura Commercial Complex New Delhi - 110015.

Indian Agro Paper Mill Association (I.A.P.M.A.)

1006, Pragati Tower 26, Rajindra Place

New Delhi-110008. Tel.: 2573 9794, 2576 8659

Fax : 2576 8639, 2575 1700

All India Small Paper Mills Association

109, Shaikh Memon Street (2nd Floor) Mumbai - 400 002.

Ph. : 23427726, 23427278

Pulp and Paper Research Institute (PAPRI) Gulab Bhawan (Rear Wing)

6A, Bahadur Shah Zafar Marg New Delhi-110002.

Pulp & Paper Manufacturers Association,

India Exchange, 9th floor,

India Exchange Place, Kolkata - 700001.

Indian Paper Makers Associations,

6, Netaji Subhash Road, Kolkata - 700001.

Central Pulp & Paper Research Institute,

P.Box No.174, Saharanpur - 247001

(Uttar Pradesh).

Indian Pulp & Paper Technical Associations. I.P T.Campus,

Saharanpur - 247001 (U.P.)

Handmade Paper Institute, Pune (Maharashtra).

Paper Machinery Manufacturers Association,

C/o. C.I.I., 172, Jor Bagh,

New Delhi - 110003.

India Paper Mills Association,

India Exchange, 4, India Exchange Place,

Kolkata - 700001.

INDUSTRIAL ASSOCIATIONS

PHD Chamber of Commerce & Industry PHD House, Opp. Asian Games Village

4/2, Siri Institutional Area,

August Kranti Marg, New Delhi-110016 Phones : +91 11 26863801-04

Fax : +91 11 26855450, 2686 3135, 2656 8392

E-mail : [email protected]

[email protected] www.phdcci.in

Confederation of Indian Industry Tel.: 24682230 www.ciionline.

Federation of Indian Chambers of Commerce & Industry, FICCI Federation House Tansen Marg New Delhi-110001 Tel.: +91-11-23738760 to 70, 23765323, 23753124 Fax : +91-11-23765333, 23320714, 23721504 www.ficci.com

Associated Chambers of Commerce & Industry, ASSOCHAM 147-B, Gautam Nagar Gulmohar Enclave New Delhi-110049 Tel.:26512477-79, 41643407 26292310, 26292313 Fax : 011-26512154, 26865830, 41643476 www.assocham.org

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