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INDUSTRY

LEGAL FORMALITIES

B
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industry

Primary Secondary
industry Industry

Genetic industries
Construction industries

Extractive industries
Manufacturing industries.

Assembly line
industries

Analytical industries

Synthetic industries

Processing industries
In the words of S.R Davar, ” Industry is a branch of
commerce concerned with the production of wealth.”
Meaning: Industry refers to that part of business
activity which is concerned with raising (purchasing),
production, processing or fabricating of products.
Industry generally deals with production of goods and
services in exchange of reasonable profit.
Features:
 Industries are concerned with the aim of raising huge amount of
capital as it is concerned with large scale production of different
products.
 It involves keen competition with other industries.
 Most of the industries try to create monopoly initially with selling
their products.
 Different industries adopt different types of marketing and
financial strategies dealing with goods and services
 Various modern technologies are used in the production of goods
at different levels.
 Profit motive is an important feature of industry.
 Industries involve an important element of risk.
 Industry is an economic activity, leading to the creation of utility.
  
Industries can be broadly classified into two broad
categories.
1.Primary industries.
2.Secondary industries.
Primary industries are broadly
classified into two.
1. Genetic industries
2. Extractive industries.

 
Secondary industries are broadly
classified into two:-
3. Construction industries
4. Manufacturing industries

 
Manufacturing industries are broadly
classified into four:-
 Analytical industries:-
 Synthetic industries:-
 Processing industries:-
 Assembly-line industries:-

Establishing an industrial enterprise.


Establishing an industrial enterprise requires proper
planning. An industrialist if he plans for today cannot
flourish tomorrow, because of dynamic economy
where changes take place everyday. Therefore an
entrepreneur must be prepared to face any changes
with a systematic planning in advance as far as
setting up an industrial enterprise is concerned
,planning includes various factors such as selection
of site, size etc. it also includes certain managerial
decisions like determination of objective, financing
etc.
Problems of establishing an
industrial enterprise:
1. Developing of business idea or
opportunity.
2. Detailed study of business idea.
3. Determination of objectives.
4. Product analysis and market survey.
5. Selecting form of organization.
Location:(selection of site)
 Access to raw materials.
 Fuel, power and water
 Transportation and communication facilities.
 Nearness to market.
 Government rules and regulation
Plant layout:-
It is a technique of locating machines,
process and plan services within the factory
in order to achieve maximum output of high
quality at the lowest possible cost of
production.
There are different types of plant layouts:-
A) Process plant layout: Under this type
all the machines doing a particular type of
work or process are arranged together in a
separate department.
B) Product plant layout: Under this type all
the machines doing the various operations are
arranged in a line in the order which they will
be used for production.
C) Mixed plant layout: Under this type
both process layout and product layout are
mixed. This layout has both the advantages of
process and product plant layout.
 
Principles of plant layout:
 Principle of minimum movement.
 Principle of sequence.
 Principle of usage.
 Principle of compactness.
 Principle of safety.
 Principle of satisfaction.
 Principle of flexibility.
 Principle of minimum investment.
 Principle of overall integration.
Procurement of machinery
It is a very important factor of production in a manufacturing
organization. There is a need for procuring right type of
machinery as it results in producing better quality products at
reasonable rates. It is a comprehensive job as it involves certain
factors which are taken into consideration, while procuring
machinery that is cost and durability of machines, its quality and
performance.
Lighting
There is always a need for sufficient artificial and natural lighting
or smooth and economical operations of an industry. A better
lighting provided in the industry encourages the workers to work
harder and contribute effectively and efficiently for increasing
productivity. It also helps on avoiding wastages, industrial
accidents etc.
Ventilation
It refers to the supply of free movement of air from outside to
inside and vice versa in an industry. By providing proper
ventilation facilities in various departments of an industry, it will
protect the health of the employees.
Air conditioning
It depends on the nature of the industry to install air conditioning
facility according to the product which an industry manufactures.
Better air conditioning facilities will raise the comfort level
among the employees as it controls the temperature and humidity
and distributes pure air by artificial means.
 
All the above mentioned factors has a great influence in
setting up an industrial enterprise.
CUBE PACKAGING
COMPANY OVERVIEW

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CUBE PACKAGING is a small scale industry (SSI)
which manufactures corrugated carton boxes. It’s a
partnership firm. Our products are eco-friendly, highly
durable, easy to use and recycle, require minimum space and
have standard load capacity.
 
PARTNERSHIP
Cube Packaging consists of FOUR partners who share their
profits and losses equally. Each of the partners contributes
Rs20 Lakhs each towards the Partnership as capital. The
working of partnership will be according to the Deed.
 CAPITAL REQUIREMENT
 Total Capital Required:
Rs. 1 Crore

Plant and Machinery AND Land and


Building.
Rs. 50 Lakhs (Approximately )

Working Capital Requirements:


50 Lakhs

 
The Capital contributed by the Partners, i.e. Rs. 20 Lakhs each, will
be utilized for the above and the remaining Rs. 20 Lakhs will be
funded through Bank Overdraft.
  
AREA OF LOCATION
The company will be established in Bangalore. It will be
located in Mahadevpura Industrial Area, Whitefield Road.
This location is best suited because of the good transportation
facility, nearness to the source of raw material and since it is
an industrial area, labourers are available in plenty.
PLANT LAYOUT
A single storey building is preferable. Since there are heavy machinery, multi
storied building may not prove to be safe. Since the production process
carries on a chain form, product or line method is applied. It helps in easy
supervision, minimum material handling and smoothens production function.
(Refer ANNEXURE 1)
 
RAW MATERIALS AND THEIR SUPPLIES
 Various raw materials required for production of Carton Boxes are Kraft
paper (paper Reel), Corrugation gum, pasting gum, stitching coil Cali cloth,
printing ink, screen etc. There are many brands for Kraft paper. But we will
be using Vinayaka, Jodani and Vijayanand Brand. The raw materials are
available in the local market. Thus we will have continuous supply of raw
materials.
 
TARGET CUSTOMERS
Garments
 and apparels – 40%
Logistics
 - 20%
Engineering Goods - 10%

Exporters
 - 20%
Art and Crafts
 - 10%
 
LABOURERS
 We require skilled as well as unskilled laborers. We do not pay daily wages
but pay salary to all. Training will be given to each laborer about the use of
machines and their safety precautions.
 
MACHINES
 Manufactures of corrugated carton box require various machines for various
purposes. For this purpose Rs. 50 Lakhs is set aside foe machinery and plant.
Machines can be purchased from Indian or foreign markets. The machinery
available in foreign market is automatic plant which requires an investment
of Rs. 5 Crore. Thus we restrict ourselves to the Indian Market Machinery.
The machinery that we purchase under our budget helps in conversion of 150
tons of Kraft paper per Year.
SPARE MAINTANENCE
Maintenance of spares and machines is very important for smooth
functioning as well as long duration of the machine. It can be done
in two ways i.e. Hiring Method and AMC (Annual Maintenance
Cost) Method. Under AMC method, a maintenance company will
be given the contract of maintaining the machinery. Thus we chose
this system/ Method.
  WORKING OF MACHINES
The Production Process follows LINE or PRODUCT LAYOUT.
First the Raw Material is loaded (i.e. paper reel) into Corrugation
machine where due to heat Flute is formed. Then the next machine
auto cutter cuts the sheet into required size. Then the top sheet is
printed in the Flexo printing machine. The number of ply is decided
(in ODD numbers) and these ply are pasted in the pasting machine.
After the ply is pasted they are stacked to dry for 4-5 hours. The
length and height of the box are decided and Creasing is done
accordingly in the rotary machine. Then the slots are made which
helps in folding with the help of Slotter machine. Then the two
boards are stitched with the box stitching machine. The punching
machine is used for Dye cut box etc. once the box are produced
they undergo natural drying. The finished goods are ready for sale.
 EXPENSES
Transportation, electricity, salary, tax, depreciation, maintenance cost,
etc.
  PRICE
The price of each carton box is based on two things GSM (Grams per
square meter) and BF (Busting Factor). GSM refers to the weight of the
box and BF refers to the strength of the paper. As the GSM and BF
increases the price also increases. The price of our products range from
RS.15 – RS.30.
PRICING POLICY
Pricing is done keeping various factors in mind. The price of Raw
Material, Efficiency of Machinery, and Various Expenses involved etc.
Nearly 40% of the price constitutes the Raw Material and cost of
production. Nearly 40-45% constitutes the expenses for distribution .

 PROFIT MARGIN
After deducting all expenses from the revenues earned, it is estimated
that 4% of the sales occurred in the year will be our profit i.e. if we sell
goods worth Rs. 100, then our net profit will be Rs. 4.

  STATUTORY REQUIREMENTS
 FactoryLicense
 Sales TaxRegistration
 Small-Scale Industry Certificate
FLOW DIAGRAM OF PLANT LAYOUT OF
CUBE MANUFACTURING

PRIMARY DEPARTMENT

BOX
AUTO PASTING STICHING
CUTTER MACHINE MACHINE

SLOTTER
CORRUGATION ROTATRY
ROTATRY
CORRUGATION MACHINE
MACHINE MACHINE
MACHINE
MACHINE

RAW
MATERIAL

SECONDARY DEPARTMENT

PUNCHING
FINISHED MACHINE
GOODS

ACCOUNTS STOCK STAFF


DEPARTMENT ROOM ROOM

annexure 1
Thank you
Our products.

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