ACKNOWLEDGEMENT

I owe my sincere and heartiest gratitude to those respondents whose co-operation and
suggestions have given me support to accomplish the project report timely and
successfully.

The present work is an effort to throw some light on “Plywood Manufacturing

Industry”. The work would not have been possible to come to the present shape without
the able guidance, supervision and help to me by number of people.

I owe my thanks to Dr. (Mrs.) M.S.Deshpspande Without her guidance it would have
been impossible to complete the project. I owe my sincere thanks to her for this esteem
guidance, keen interest, constant inspiration and valuable guidance.

I am highly obliged to Dr. J.V.Joshi sir Head of the Department for providing necessary
facilities and valuable guidance time to time.
I take this opportunity to thanks Dr (Mrs.) L.N.Laturkar madam and the entire faculty
member o the SCMS family for their cooperation and guidance for the completion of the
project.

I would also like to thank my friends Santosh, Jitu, Sandip, Umesh, Arif, Mukesh, Ishan,
Deepak. They helped me to keep myself jolly during my project.

Dated: SANJAY HINGANKAR

1
 Project Profiles at a glance
1. Name of the Project: “Plywood Manufacturing Industry”
2 .Location within State/Country: MIDC, Hingoli.
Dist: Hingoli
State: Maharashtra.

3 .Nearest Rail, Road & Sea

Connection : i) Nearest Rail Head for units to be located at
Hingoli District Head quarter
ii) Nearest Road connection for all the units
are State Highway
iii) Nearest Sea connection for all units is
Mumbai Sea Port
4 .Estimated Capital Cost of the
Project : The total project cost is Rs.1,46,49,500.00

5 .Capital Equipment : (i) Power operated machines like Hydraulic Hot

. Press, Steam Boiler.
:
6 .Raw materials : Hardwood, Softwood & Adhesives.
7 .Environment Impact : The project is an environment friendly activity.
There will be no ecological imbalance and
Pollution hazard to the localities because of the
project. The project may help in checking the
destruction of timber forest.
8 .Foreign Exchange Cost component: Nil

10. Policy Framework applicable to the

2
Project
12. Time-frame for selection &
completion of selection of project
13. Government Incentive packages
applicable to the Project
14. Other General Information
: State Industrial Policy, Industrial Policy of
NER & Government of India are applicable to
the above project, vision 20-20 (development of the
NE states)
: Within a period of 12(Twelve) months.
: Capital investment, interest, power, transport
subsidies, etc.
2) State Government Guarantee
: The competitive advantage of the project over
other Plywood production units in the
State shall be in terms of volume of
production, quality and price because of the
installation of improved type machinery.
Advantages over other units are due to the
availability of skilled manpower, adequate
Raw materials resources as well as high market
potentials, security environment to be created
by the State Government especially for the
above project etc.
3
INTRODUCTION:-

Hingoli is a place on the border of Marathwada and Vidarbha region. Marathwada is rich
of agriculture product like Soyabin, cotton and Turdal. Vidharbha is rich of Rice.
Vidarbha region is also attached to Madhya Pradesh which has Large Forest area. The
Hardwood and Softwood is the raw material required for this project. The Hardwood i.e.
raw material of trees will be bought from Vadarbha. Softwood will be collected from
both Marathwada and Vidarbha. The softwood is Rice husk, Cotton waste and Soyabin
waste. The raw material is easily available in this region and hence, the project location is
selected here. Hingoli is connected to south Maharastra and east Maharastra by means of
roads and railway, Hence easy transportation.

The making of Plywood is the most universal spread manufacturing process all over. The
process includes making log, cutting, vineer preparation and plywood sheets. The high
quality adhesive is being used.

This industry has carved for itself an important place among the Plywoods of the State. It
would provides fulltime employment to the labors and skilled workers. This will help the
rural people of this region as they are getting paid for the agriculture waste instead of
burning it and development of both agriculture and industry as well.

4
 VISION OF THE PROJECT:-

“Customer Satisfaction’- by providing high quality in a professional and

reliable manner through merit shop philosophy, allowing it to be competitive, adaptable
and creative”

MISSION OF THE PROJECT:-

• To provide jobs to rural skillful employees.
• To develop the economy of the region.
• To popular eco friendly products.
• To obtain maximum growth with minimum investment.
• To use the modern technology to the plywood industries.

5
 SELECTION OF THE PROJECTS:-
The main reasons that encourage me to select this project are given as follows as
1. The main raw materials for the industry, i.e. softwood and hardwood of various
types are abundantly available throughout the State.
2. Government policies beneficial to this project.
3. I am interested in the plywood manufacturing industry.
4. The local market not any plywood industry.
5. Today plywood demand increases day by day.
6. The industry has considerable scope for development and various new products
suited to modern tastes can be manufactured out of Trees.

6
 History and Origin

Plywood has it origins in laminating veneers around 3,500 years ago in Egypt
during the days of the Pharoahs. The early Greeks and Romans also used veneers
and plywood mainly for furniture. From the mid 1800’s ‘modern’ plywoods were
utilised in pianos, furniture and tea chests. Plywood came of age as a versatile
construction material in the 1930’s when water resistant resins were used as glues
giving plywood longevity and integrity. Australian plywood manufacture
commenced in Melbourne in 1911 but the two plants closed after a few years of
operation. Around 1914 plywood manufacture commenced in Woolloongabba,
Brisbane. Thereafter Brisbane became the main centre of plywood manufacturing
activity with the 10 mills producing about two thirds of all Australian production,
thus making this city the logical base for the Plywood Association of Australia. The
Australian industry expanded around the country after the second World War to the
stage where in 1960 there were 63 mills. Around this time the local industry was
under threat from imports, and other panel products, so the industry invested
heavily in CSIRO research to better understand the manufacturing process and
improve productivity. In 1960 the mills used timber from indigenous forests with
around 80% of the production being for interior use. Today, the nine, on average
much larger mills use mainly plantation timber with around 90% of the plywood
produced being for structural applications. As Australasian plywood can be used in
critical structural applications where the costs of failure can be high, there is a
requirement for high reliability combined with consistent quality. This is provided
by the Plywood Association of Australia’s third party audited, process control
based, industry wide quality control program. Thus the PAA quality brand permits
easy identification and assures the customer the plywood is a quality product and
meets the relevant Standard.

7
 MARKET POTENTIAL AND COMPETITION
Plywood products always have its demand in the market. The products are eco- friendly
and cheap as compared to the other plastic products. The different Plywood products
have different categories of customers. The Plywood products like furniture generally
popular among the middle class people of the regions.
MY POTENTIAL CUSTOMERS ARE AS FOLOWS AS
• Furniture manufacturing company
• Retailers of the Plywood sheets
• Government institutions like Railway, State Transport

COMPETITOR
• Shalini plywood pvt. Ltd. Waluj, Auarangabad.
• Lakshmi plywood, Nagpur.
• Kitply Industries Ltd, Nagpur.

COMPANY LOGO:

8
MARKETING CHANNELS:-
The marketing channels plays important role in the distribution of the products to reach
the potential customers. The selection of the marketing channels is also important .so
choose my marketing channels as follows as

Wholesaler & Distributor:

These People working as a company partner because they are giving place
our product.

Industrial Merchants:
The registration with the trading companies like India mart will also be the
marketing channel.

9
 LEGAL FORMALITIES

for the starting a SSI unit , every unit has some legal formalities to complete for starting a
new business or to dissolve any industries. Here depicted some legal aspects which are
necessary to be completed by entrepreneurs.

1. No objection letters DIC.

2. Approval letter from DIC.
3. Power sanction assurance letter from Mahavitaran
4. Certification of water supply.
5. Application for Telephone.
6. S.S.I Unit Registration.
7. Octroi Exemption letter from Municipal council.
8. Registration for sales Tax.
9. Registration of central Sales Tax.
10. Application for loan to SBI & IDBI, Hingoli
11. Certificate from industrial pollution Office.

10
 Plant location:-
The plant is located at following address
MIDC,Hingoli
TALUKA –Hingoli
DIST –Hingoli
STATE- Maharashtra,PIN-431513
The factors influenced to choose the plant layout are as follows as
1. Availability of raw materials:-
Hardwood, Softwood is easily available nearby villages at very cheap rate. The
transportation cost is also very less.
2. Availability 0f skilful labour force:-
The craftsmen are easily available as many of the worker engaged in this business
for years together.
3. Good transportation facilities:-
• The place is well connected to the State Highways .
• The place only 10 K.M away from the Hingoli railway station.
4. Availability of the power and water supply:
The power supplied by the Mahavitaran, at the rate of Rs.6 for the commercial
use.
The water is available from the natural sources like ponds and rivers.

11
PICTORIAL REPRESENTATION OF THE
PLANT LAY OUT:-

Entry gate Corporate office

Workshop
Inventories store

Canteen scrapsroom
Toilets
WorkshopCcccccccc

12
Raw Materials

The outer layers of plywood are known respectively as the face and the back. The face is
the surface that is to be used or seen, while the back remains unused or hidden. The
center layer is known as the core. In plywoods with five or more plies, the inter-mediate
layers are known as the crossbands.

Plywood may be made from hardwoods, softwoods, or a combination of the two. Some
common hardwoods include ash, maple, mahogany, oak, and teak. The most common
softwood used to make plywood in the United States is Douglas fir, although several
varieties of pine, cedar, spruce, and redwood are also used.

Composite plywood has a core made of particleboard or solid lumber pieces joined edge
to edge. It is finished with a plywood veneer face and back. Composite plywood is used
where very thick sheets are needed.

The type of adhesive used to bond the layers of wood together depends on the specific
application for the finished plywood. Softwood plywood sheets designed for installation
on the exterior of a structure usually use a phenol-formaldehyde resin as an adhesive
because of its excellent strength and resistance to moisture. Softwood plywood sheets
designed for installation on the interior of a structure may use a blood protein or a
soybean protein adhesive, although most softwood interior sheets are now made with the
same phenol-formaldehyde resin used for exterior sheets. Hardwood plywood used for
interior applications and in the construction of furniture usually is made with a urea-
formaldehyde resin.

Some applications require plywood sheets that have a thin layer of plastic, metal, or
resin-impregnated paper or fabric bonded to either the face or back (or both) to give the
outer surface additional resistance to moisture and abrasion or to improve its paint-
holding properties. Such plywood is called overlaid plywood and is commonly used in
the construction, transportation, and agricultural industries.

13
Other plywood sheets may be coated with a liquid stain to give the surfaces a finished
appearance, or may be treated with various chemicals to improve the plywood's flame
resistance or resistance to decay.

Plywood Classification and Grading

There are two broad classes of plywood, each with its own grading system.

One class is known as construction and industrial. Plywoods in this class are used
primarily for their strength and are rated by their exposure capability and the grade of
veneer used on the face and back. Exposure capability may be interior or exterior,
depending on the type of glue. Veneer grades may be N, A, B, C, or D. N grade has very
few surface defects, while D grade may have numerous knots and splits. For example,
plywood used for subflooring in a house is rated "Interior C-D". This means it has a C
face with a D back, and the glue is suitable for use in protected locations. The inner plies
of all construction and industrial plywood are made from grade C or D veneer, no matter
what the rating.

The other class of plywood is known as hardwood and decorative. Plywoods in this class
are used primarily for their appearance and are graded in descending order of resistance
to moisture as Technical (Exterior), Type I (Exterior), Type II (Interior), and Type III
(Interior). Their face veneers are virtually free of defects.

Sizes

Plywood sheets range in thickness from. 06 in (1.6 mm) to 3.0 in (76 mm). The most
common thicknesses are in the 0.25 in (6.4 mm) to 0.75 in (19.0 mm) range. Although
the core, the crossbands, and the face and back of a sheet of plywood may be made of
different thickness veneers, the thickness of each must balance around the center. For
example, the face and back must be of equal thickness. Likewise the top and bottom
crossbands must be equal.

14
The most common size for plywood sheets used in building construction is 4 ft (1.2 m)
wide by 8 ft (2.4 m) long. Other common widths are 3 ft (0.9 m) and 5 ft (1.5 m).
Lengths vary from 8 ft (2.4 m) to 12 ft (3.6 m) in 1 ft (0.3 m) increments. Special
applications like boat building may require larger sheets.

The Manufacturing
Process

The trees used to make plywood are generally smaller in diameter than those used to
make lumber. In most cases, they have been planted and grown in areas owned by the
plywood company. These areas are carefully managed to maximize tree growth and
minimize damage from insects or fire.

Here is a typical sequence of operations for processing trees into standard 4 ft by 8 ft (1.2
m by 2.4 m) plywood sheets:

The logs are first debarked and then cut into peeler blocks. In order to cut the blocks into
strips of veneer, they are first soaked and then peeled into strips.

Felling the trees

• Selected trees in an area are marked as being ready to be cut down, or felled. The
felling may be done with gasoline-powered chain saws or with large hydraulic shears
mounted on the front of wheeled vehicles called fellers. The limbs are removed from
the fallen trees with chain saws.

15
• The trimmed tree trunks, or logs, are dragged to a loading area by wheeled vehicles
called skidders. The logs are cut to length and are loaded on trucks for the trip to the
plywood mill, where they are stacked in long piles known as log decks.

Preparing the logs

• As logs are needed, they are picked up from the log decks by rubber-tired loaders
and placed on a chain conveyor that brings them to the debarking machine. This
machine removes the bark, either with sharp-toothed grinding wheels or with jets
of high-pressure water, while the log is slowly rotated about its long axis.
• The debarked logs are carried into the mill on a chain conveyor where a huge
circular saw cuts them into sections about 8 ft-4 in (2.5 m) to 8 ft-6 in (2.6 m)
long, suitable for making standard 8 ft (2.4 m) long sheets. These log sections are
known as peeler blocks.

Making the veneer

• Before the veneer can be cut, the peeler blocks must be heated and soaked to
soften the wood. The blocks may be steamed or immersed in hot water. This
process takes 12-40 hours depending on the type of wood, the diameter of the
block, and other factors.
• The heated peeler blocks are then transported to the peeler lathe, where they are
automatically aligned and fed into the lathe one at a time. As the lathe rotates the
block rapidly about its long axis, a full-length knife blade peels a continuous sheet
of veneer from the surface of the spinning block at a rate of 300-800 ft/min (90-
240 m/min). When the diameter of the block is reduced to about 3-4 in (230-305
mm), the remaining piece of wood, known as the peeler core, is ejected from the
lathe and a new peeler block is fed into place.
• The long sheet of veneer emerging from / the peeler lathe may be processed
immediately, or it may be stored in long, multiple-level trays or wound onto rolls.
In any case, the next process involves cutting the veneer into usable widths,
usually about 4 ft-6 in (1.4 m), for making standard 4 ft (1.2 m) wide plywood
sheets. At the same time, optical scanners look for sections with unacceptable

16
 defects, and these are clipped out, leaving less than standard width pieces of
veneer.

The wet strips of veneer are wound into a roll, while an optical scanner detects
any unacceptable defects in the wood. Once dried the veneer is graded and
stacked. Selected sections of veneer are glued together. A hot press is used to seal
the veneer into one solid piece of plywood, which will be trimmed and sanded
before being stamped with its appropriate grade.

• The sections of veneer are then sorted and stacked according to grade. This may
be done manually, or it may be done automatically using optical scanners.
• The sorted sections are fed into a dryer to reduce their moisture content and
allow them to shrink before they are glued together. Most plywood mills use a
mechanical dryer in which the pieces move continuously through a heated
chamber. In some dryers, jets of high-velocity, heated air are blown across the
surface of the pieces to speed the drying process.
• As the sections of veneer emerge from the dryer, they are stacked according to
grade. Underwidth sections have additional veneer spliced on with tape or glue to

17
 make pieces suitable for use in the interior layers where appearance and strength
are less important.
• Those sections of veneer that will be installed crossways—the core in three-ply
sheets, or the crossbands in five-ply sheets—are cut into lengths of about 4 ft-3 in
(1.3 m).

Forming the plywood sheets

• When the appropriate sections of veneer are assembled for a particular run of
plywood, the process of laying up and gluing the pieces together begins. This may
be done manually or semi-automatically with machines. In the simplest case of
three-ply sheets, the back veneer is laid flat and is run through a glue spreader,
which applies a layer of glue to the upper surface. The short sections of core
veneer are then laid crossways on top of the glued back, and the whole sheet is
run through the glue spreader a second time. Finally, the face veneer is laid on top
of the glued core, and the sheet is stacked with other sheets waiting to go into the
press.
• The glued sheets are loaded into a multiple-opening hot press. presses can handle
20-40 sheets at a time, with each sheet loaded in a separate slot. When all the
sheets are loaded, the press squeezes them together under a pressure of about 110-
200 psi (7.6-13.8 bar), while at the same time heating them to a temperature of
about 230-315° F (109.9-157.2° C). The pressure assures good contact between
the layers of veneer, and the heat causes the glue to cure properly for maximum
strength. After a period of 2-7 minutes, the press is opened and the sheets are
unloaded.
• The rough sheets then pass through a set of saws, which trim them to their final
width and length. Higher grade sheets pass through a set of 4 ft (1.2 m) wide belt
sanders, which sand both the face and back. Intermediate grade sheets are
manually spot sanded to clean up rough areas. Some sheets are run through a set
of circular saw blades, which cut shallow grooves in the face to give the plywood
a textured appearance. After a final inspection, any remaining defects are
repaired.

18
 • The finished sheets are stamped with a grade-trademark that gives the buyer
information about the exposure rating, grade, mill number, and other factors.
Sheets of the same grade-trademark are strapped together in stacks and moved to
the warehouse to await shipment.

PRODUCT:
1) PLYWOOD SHEETS:

19
FUTURE PLANNING FOR THE EXPANSION:-

Even though plywood makes fairly efficient use of trees—essentially taking them apart
and putting them back together in a stronger, more usable configuration—there is still
considerable waste inherent in the manufacturing process. In most cases, only about 50-
75% of the usable volume of wood in a tree is converted into plywood. To improve this
figure, several new products are under development.

One new product is called oriented strand board, which is made by shredding the entire
log into strands, rather than peeling a veneer from the log and discarding the core. The
strands are mixed with an adhesive and compressed into layers with the grain running in
one direction. These compressed layers are then oriented at right angles to each other,
like plywood, and are bonded together. Oriented strand board is as strong as plywood and
costs slightly less.

20
List of the machine to be used in the manufacturing process and their cost of
purchase:-

General Plywood Processing Machine

1. Hydraulic Hot Press Machine:

'BS' Make, Hydraulically operated steam/oil heated multi daylight Hot
Press in upclosing frame. The main body is fabricated from M.S. Plate and
Hot Platens are also fabricated from solid plate as well as complete
with Automatic Powerpack, steam connection pipes and other necessary
parts and components.

Rs. 55,50,000

2) Steam Boiler :

21
3) Chimney(30m) with ladder:

4) Heat Recovery unit (Air Pre-Heater):

.
22
5) Glue mixer :

23
SOURCES OF FINANCE:-
Supply of finance is very important factor in the establishment of an enterprise is old.
Finance id the life line of the business. Finance e deals with the arrangements of the
sufficient capital for the smooth run of the organization. Following are the certain sources
of the scheme of the finance.
A) OWN CAPITAL:-
According to the rules set up by various financial institution 25% to 35% of the capital
should be the own investment of the entrepreneur. 30% of the project cost will be
financed by the promoter himself.
B) TERM LOAN FROM THE COMMERCIAL BANKS:
State Bank Of India, Hingoli branch, lend Rs. 51,20,000/-at the rate 11%
C) TERM LOANS FROM THE NATINAL SMALL INDUSTRIES
CORPORATION:-
NSIC provides loans at 8.5% to small scale industries for the development of the working
capital requirement.

COST OF THE PROJECT

SR.NO PARTICULARS AMOUNT
01 Land 8,00,000.00
02 Site development 45,000.00
03 Building 20,00,000.00
03 Plant and machinery 79,00,000.00
04 Furniture and Misc 1,75,000.00
05 Preliminary and preoperative exp. 77,000.00
06 Depreciation 9,07,500.00
06 Working capital (3months) 27,45,000.00
TOTAL 1,46,49,500.00

24
MEANS OF FINANCE:
SR.NO RATE OF PARTICULARS AMOUNT
INTEREST
01 NIL Promoters Capital 43,94,850.00
02 11% State Bank Of India 51,20,000.00
03 8.5% NSICL 51,34,650.00
TOTAL 1,46,49,500.00

TOTAL FIXED CAPITAL:

SR.NO PARTICULARS AMOUNT
01 Land 8,00,000.00
02 Site development 45,000.00
03 Building 20,00,000.00
03 Plant and machinery 79,00,000.00
04 Furniture and Misc 1,75,000.00
05 Preliminary and preoperative exp. 77,000.00
06 Depreciation 9,07,500.00
TOTAL 1,23,57,000.00

1. LAND:
Sr. No Particulars Price/Acre Amount
01 Land area 4,00,000.00 8,00,000.00
(2 acre)

2. SITE DEVELOPMENT
Sr. no Particulars Cost of the Amount
items
25
O1 Filling of the land 13,000.00 13,000.00
02 Fencing 12,000.00 12,000.00
03 Gardening 10,000.00 10,000.00
04 Gates 10,000.00 10,000.00
Total 45,000.00 45,000.00
3. BUILDING
Sr. no Particulars Cost of the Amount
items
01 Corporate office 3,20,000.00 3,20,000.00
02 Show room 3,50,000.00 3,50,000.00
03 Work shop 7,80,000.00 7,80,000.00
04 Toilets 1,50,000.00 1,50,000.00
05 Store room 4,00,000.00 4,00,000.00
Total 20,00,000.00 20,00,000,00

4. PLANT AND MACHINERY:

Sr. no Particulars Quantity Amount
01 Hydrualic Hot press 01 55,50,000.00
machine
02 Steam Boiler 01 13,75,000.00
03 Chimney(30m) with 01 3,75,000.00
ladder
04 Heat Recovery unit (Air 01 1,80,000.00
Pre-Heater)
05 Multi Cyclone Dust 01 1,75,000.00
Collector
06 Pressure Reducing 01 2,25,000.00
Station

Add Transportation 10,000.00

26
 Installation 10,000.00
Total cost 79,00,000.00
5. PRELIMINARY AND PRE.OPERATIVE EXPENSES:-

Sr. No Particulars Amount

01 Deposit for power ,water , telephone 25,000.00
02 Loan application process fee 12,000.00
03 Deposit for internet 3,000.00
04 Legal stamp duty and registration 20,000.00
05 Travelling 10,000.00
06 Consultancy 7,000.00
Total 77,000.00

5.FURNITURE AND MICELLANOUS ASSETS:-

sr. no Particulars Quantity Amount
O1 Furniture

Office chairs 8set 24,000.00

Almirah 8 32,000.00
Racks 20 40,000.00
Tables 2 8,000.00
Computer and accessories 1 30,000.00
Fans 8 8,000.00
Sofa 1 18,000.00
02 Work shed ------- 15,000.00

Total 1,75,000.00

6.DEPRECIATION (P.A)
Sr. No Type of assets Cost of assets Rate of Amount
dep.

27
01 Plant and machinery 79,00,000.00 10% 7,90,000.00
02 Furniture 1,75,000,00 10% 17,500.00
03 Building 20,00,000.00 5% 1, 00,000.00
Total 1,09,75,000.0 9,07,500.00
0

WORKING CAPITAL REQUIREMENT:-

Sr. no Particulars 1 month 3 month
01 Raw materials 9,15,000.00 27,45,000.00
02 Salary and wages 1,35,500.00 4,06,500.00
03 Other manufacturing 12,000.00 36,000.00
expenses
04 Power and fuels 16,000.00 48,000.00
05 Selling and office 17000.00 2,04,000.00
expenses
Total 10,95,500.00 32,86,500.00

1. RAW MATERIALS:-
Sr.No Particulars No. of price /piece Cost /month Cost /year
Tons/month (Rs)
01 Softwood 250 2000 5,00,000.00 60,00,000.00
02 Hardwood 50 3000 1,75,000.00 21,00,000.00
03 Adhesive 2 1,20,000 2,40,00.00 28,80,000.00

28
 Total 9,15,000.00 1,09,80,000.00

2. SALARY AND WAGES:-

Sr.no Name of the No Salary/head Salaries/mont Salaries/year
post per h
post
01 Manager 01 15,000.00 15,000.00 1,80,000.00
02 Accountant 01 8,000.00 8,000.00 96,000.00
03 Office staff 02 5,000.00 10,000.00 1,20,000.00
04 Chemist 01 4,500.00 4,500.00 54,000.00
05 Supervisor 01 4,000.00 4,000.00 48,000.00
06 Machine 06 3,200.00 38,400.00 4,60,800.00
Operator
07 Skilled labour 06 2,700.00 16,200.00 1,94,400.00
08 Unskilled 06 2,200 26,400.00 3,16,800.00
worker
09 Women 05 1,600 8,000.00 96,000.00
Mazdoor
10 Mechanic- 02 2,500 5,000.00 60,000.00
cum
Electrician
Total 31 1,35,500.00 16,26,000.00

3. POWER AND FUELS:-

29
Sr.No Particulars P.M. P.A.
01 Fuels 7,000.00 84,000.00
02 Power 9,000.00 1,08,000.00
Total 16,000.00 1,92,000.00

4. OTHER MANUFACTURING EXPENSES :-

Sr.No Particulars P.M. P.A.
01 Paints 4,000.00 48,000.00
02 Packaging materials 2,000.00 24,000.00
03 Repairing of the machines 4,000.00 48,000.00
Total 12,000.00 1,44,000.00

5. OFFICE,SELLING, DISTRIBUTION EXPENSES:

Sr.No Particulars P.M. P.A.
01 Postage and stationeries 3,000.00 36,000.00
02 Telephone bills/internets 4,000.00 48,000.00
03 Transportation 10,000.00 1,20,000.00
Total 17,000.00 9,87,000.00

VARIABLE COST:
Sr.No Particulars P.M. P.A.
01 Raw materials(100%) 9,15,000.00 1,09,80,000.00
02 Wages (80%) 1,08,400.00 13,00,800.00
03 Power and fuels(90%) 14,400.00 1,72,800.00
04 0ther manufacturing 12000.00 1,44,000.00
expense(100%)
05 Interest w/c loans (80%) 37,547.00 4,88,640.00

06 Interest term loans (20%) 7,274.00 94,392.00

07 Selling and administrative 17,000.00 2,04,000.00

30
 expenses (100%)
Total 11,11,621.00 1,33,39,452.00

FIXED COST:-
Sr.No Particulars P.M. P.A.
01 Wages (20%) 27,100.00 3,25,200.00
02 Power and fuels(10%) 1,600.00 19,200.00
03 Interest on w/c (20%) 9,386.00 1,12,632.00
04 Interest on term loans (80%) 29,096.00 3,49,152.00
05 Office, selling , distribution 15,300.00 1,83,600.00
expenses (90%)
06 Depreciation(100%) 75,625.00 9,07,500.00
Total 1,58,107.00 18,97,284.00

COST OF THE PRODUCTION:-

Sr. no Particulars 1 month 1 year
01 Raw materials 9,15,000.00 1,09,80,000.00
02 Salary and wages 1,35,500.00 16,26,000.00
03 Other manufacturing 12,000.00 1,44,000.00
expenses
04 Consumables 12,000.00 1,44,000.00
05 Repairing of machine 20,000.00 2,40,000,00
06 Depreciation @10%
07 Plant and machineries 65,833.00 7,90,000.00
Furniture 1460.00 17,500.00
Total 11,49,793.00 1,37,97,516.00

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ESTIMATED SALE:-
Sr. no Items No items Price Monthy Annually sales
sold /item sales
/month
01 6mm plywood sheets

3*6 21 720 15,120.00 1,81,440.00

3*8 34 960 32,640.00 3,91,6800.00
4*6 50 960 48,000.00 5,76,000.00
4*8 5 1280 64,000.00 7,68,000.00
0
TOTAL 165 1,59,760.00 19,17,120.00
02 8 mm plywood sheet
3*6 30 1080 32400.00 3,88,800.00
3*8 44 1440 63360.00 7,68,000.00
4*6 67 1440 96480.00 11,57,760.00
4*8 66 1920 1,26,720.00 15,20,640.00
TOTAL 207 3,19,600.00 38,35,200.00
03 12 mm plywood sheet
3*6 44 1440 63,360.00 7,60,320.00
3*8 66 1920 1,26,720.0 15,20,640.00
0
4*6 100 1920 1,92,000.00 23,04,000.00
4*8 100 2560 2,56,000.00 30,72,000.00
TOTAL 300 6,38,080.00 76,56,960.00
04 18 mm plywood sheet
3*6 25 2160 54,000.00 6,48,000.00
3*8 33 2880 95,040.00 11,40,480.00
4*6 50 2880 1,44,000.00 17,28,000.00
4*8 50 3840 1,92,000.00 23,04,000.00
TOTAL 58,20,480.00
1,92,29,760

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PROFITABILITY:-
Sr.no Particulars P.M P.A.
01 Sales 16,02,480.00 1,92,29,760.00
02 Less Cost of production 11,49,793.00 1,37,97,516.00
03 Gross 4,52,687.00 54,32,244.00
profit
04 Less Office, selling, 17,000.00 2,04,000.00
distribution
05 Less Interest on loan
@11% (PNB) 46,933.00 5,63,196.00
@8.5%(SIDC) 36,370.00 4,36,440.00

06 Net profit 3,52,384.00 42,28,608.00

BREAK EVEN POINT:

Formula used

FIXED COST
B.E.P= _______________
CONTRIBUTION

CONTRIBUTION=SALES-VARIABLE COST
CONTRIBUTION=Rs 1, 92, 29,760.00-1, 33, 39,452.00
=58, 90,308.00

18, 97,284.00
B.E.P= _____________ X100 =32.21%
58, 90, 308.00

33