SCHEME ON CORRUGATED BOARD AND BOXES

INTRODUCTION: This project profile in detail foresees setting up of unit to produce corrugated board and boxes. Paper and paper products are versatile industrial raw materials with a wide variety of application in this era and due to shortage of softwood, wooden packing cases are more and more replaced with corrugated board- boxes and cartons. As more and more materials are coming in paper packing, availability of raw materials are also on the increase. Thus recycling of waste paper is in demand, which can be used to produce products like paperboards, binding sheets, sweet box cartons and other packing cartons. 80% of industrial packaging is done by carton boxes due to effective cushioning, light weight, easy to fabricate, easy for storing, easy for disposal, no strapping necessary, printing and advertising advantages, must in export market, recyclable etc. MARKET: Corrugated board boxes are used in different area of packing in goods such as: Breweries, Glass wares, Cigarettes, Pharmaceuticals, Biscuits, Milk & Milk products, Soaps, Cosmetics, Tea & Coffee, Hosiery, shoe & footwear industry, toys etc., BASIS AND PRESUMPTIONS: 1. Single shift of 8 hours a day, 25 days a month and 300 days in a year is presumed. Efficient machines and workers are also presumed. 2. Minimum 2 year period is considered for achieving full capacity utilization 3. Labour rates are as per the prevailing rates. 4. An average interest rate of 14% is considered. 5. The estimates are drawn for a production capacity generally considered technoeconomically viable for model type of manufacturing activity. 6. The information supplied is based on a standard type of manufacturing activity viable for model type of manufacturing activity. 7. The information supplied is based on a standard type of manufacturing activity utilizing conventional techniques of production at optimum level of performance. 8. Costs in machinery and equipment, raw materials and the selling prices of the finished products etc., are generally prevailing at the time of preparation of the project profiles and may vary depending upon various factors. 9. Whereas some names of manufacturers, suppliers of machinery and equipment, raw materials etc. are indicated at the end of the profile, those are by no means exclusive or exhaustive. IMPLEMENTATION SCHEDULE: Normally eighteen months are required for the complete implementation of the project, including machinery erection, raw materials procurement etc. PRODUCTION DETAIL AND PROCESS TECHNIQUES: Corrugated Board: Corrugated board is made with a corrugated sheet of paper attached to the facing of flat paper, usually kraft by adhesives. In our country, it is mostly produced over a single facer machine here two paper reels are run together, one layer of paper becomes corrugated after passing through the heated rolls and the other is brought into contact with it after the former having glued at the tips. Thus both get

pasted together and are wound in rolls. The resulting roll is now known as single face/ corrugated roll/board. By cutting this roll with board cutter and then gluing the corrugated side by a pasting machine and placing 3rd ply of paper over it double faced or 3-ply corrugated board is produced, this board is kept under pressure in a sheet pressing machines for some time for setting of the wet glued sheets. Similarly board can be pasted to form thicker boards i.e.; 5-ply, 7-ply and 9-ply etc. Corrugated Board Boxes: The process of manufacturing boxes or containers constitutes five operations. i) Slitting and Longitudinal Cutting ii) Creasing iii) Slotting iv) Flap or Corner Cutting v) Stitching After passing the sheet through these operations, a box or container is ready, slitting and creasing operations can simultaneously by carried over a 4 bar rotary cutting and creasing machine. The trimmed and creased sheet is slotted and flap cut on an Eccentric Slotted Machine. Finally, it is either stitched over a stitching machine or glued/taped manually. For partition boxes the half slotted boards are used which can conveniently be produced over a partition spotter machines. III. LAND AND BUILDING

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Land Building - - Office - 200 sq. ft. Go-down - 2000 sq. ft. Production Area - 2800 sq. ft. Total - 5000 sq. ft. Total

2 lakhs

8 lakhs 10 lakhs

IV. PLANT AND MACHINERY

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Single face paper corrugation Machine Two Board Cutters with one reel stand light model One Sheet Pasting Machine One sheet pressing One 4-Bar Rotary Cutting & Creasing One Eccentric Slotted Two stitching machines i) One 36 arm angular head ii) One 48 arm, straight head

4 lakhs 1 lakhs 0.75 lakhs 1 lakhs 2 lakhs 2 lakhs

0.55 lakhs .50 lakhs

Total Packing, forwarding, excise, insurance, sales-tax, freight etc. Total Office furniture Erection and electrification Total
A. RAW MATERIALS (Monthly)

11.8 lakhs 1.23 lakhs 13.03 lakhs 0.5 lakhs 1.2 lakhs 14.73 lakhs

1 2 3

Kraft paper Rs.40 /- per kg. Glue (Starch) Stitching wire Total

50 Tons 4 Tons 330 Kg.

20.00 Lakhs 1.20 Lakhs 0.17 Lakhs 21.37 Lakhs

B. STAFF AND LABOUR (Monthly)

1 2 3 4 5 6

Manager Accountant cum Typist Skilled Worker Semiskilled worker Unskilled worker Watchman cum Peon Total Add perks 20% Total Electricity Water Fire Wood Total

1 1 6 5 4 2

5,000 3,000 15,000 10,000 6,000 3,000 42,000 8,000 50,000 8,000 2,000 1,300 9,500

C. OTHER EXPENDITURE

1 2 3 4

Postage and Stationery Telephone Traveling Transport

2,000 3,000 5,000 7,500

5 6 7

Insurance and Taxes Repair and Maintenance Misc. Total Total Working Capital for a month A+B+C+D For 3 Months

2,000 5,000 1,500 26,000 22,22,500 66,67,500

TOTAL INVESTMENT

Land and Building Plant and Machinery Working Capital Total

COST OF PRODUCTION AND PROFITABILITY (Annual)

10.0 Lks 14.73 Lks 66.68 Lks 91.41 Lks

1 2 3 4

Total expenses for one Interest on fixed capital (13%) Interest on working capital (15%) Depreciation 10% Total

266.7lakhs 3.125 lakhs 10.002 lakhs 2.10 lakhs 281.925 lakhs

SALES REVENUE (Annual) By sale 600 MTs of corrugated boxes @ Rs.50 /- per kg. 300 lakhs Gross Profit = 300-282 % Profit on investment = 19.69 % BREAK EVEN ANALYSIS: Fixed cost per annum 1. Interest on capital investment - ---------3.125 2. Depreciation -------------------------- 2.10 3. 40% of salaries and wages ------------ 20000 4. 40% of other expenses --------------- 10400 Total -------------------------------------------------552900 B.E.P = Fixed Cost x 100 / Fixed Cost + Profit = 18lakhs = 18 x 100 / 91.41

= 552900 * 100 / 552900 + 1800000 = 23.50 % ADDRESSES OF MACHINERY MANUFACTURERS 1. M/s.. Shree Krishna Engineering Works Kinkhabwala Wadi Sahara Darwaja, Surat 395 003 M/s. Anil & Co. 68 N.G.O.s Colony Rajendranagar, Mysore M/s. Indo-Europa Trading Co. (P) Ltd. Kubera Building,21/10 Sunkurama Street, Chennai - 600001 M/s. Natraj Machinery Pvt. Ltd. 66 Sector 27 C, Faridabad ADDRESSES OF RAW MATERIAL SUPPLIERS 1. M/s. Industrial Chemicals & Adhesives Amar Hills, Saki Vihar Road Powal, Mumbai - 400072 M/s. Vijay Industrial Adhesives 453, GIDC Estate, Makarpura Vadodara 390 010 M/s. Corn Products Co. (India) Pvt. Ltd. Shree Niwas House, Hazarimal Somari Marg, P.O. Box No.994, Mumbai 400 001 M/s. Synthetic Glue & Chemical Industries 21 Goneka Lane, Calcutta-7 M/s. Anoopam Adhesives 159, Vithal Udyognagar Vallabh Vidyanagar 388 120 M/s. Ad hesives & Chemicals Arcot Road, Porur Madras 602 104 M/s. Gold Adhesives Industries Compound Hemansuray Road, Malad (West) Mumbai 400 064 M/s. Vijay Adhesives Industries 6 Friends Colony, G.T. Road Shahdara Delhi - 110032 M/s. Synthetic Glue Chemicals Ltd.

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D-104 Industrial Area Bulandeshahr Road , Ghaziabad STITCHING WIRE MANUFACTURERS 1. M/s. Pearls Products Amar Hill, Saki Vihar Road Powal, Mumbai-400 072 M/s. Universal Wire Manufacturing Co. 61/63 Jalan Wadal, Gokhle Road (South), Dadar Mumbai-400 028 M/s. Hindustan Wire Industrie 10/11 Ramruddin Industrial Estt. Kurla Andheri Road Mumbai-400 072 M/s. Variety Traders 10/14 Janjikar Street Steel House Mumbai-400 003 M/s. Mehta Brother 44 Undria Street Mumbai-9 M/s. International Wire Industries Patwa Chambers, 5th Floor Room No.55, Clive Road Opp. Masjid Railway Station Mumbai-8 M/s. J.R. Desai & Co. 71-73 Chakla, Mumbai-3 M/s. Renown Steel Sales Corporation Steel Chambers Branch St., Mumbai-9 M/s. Saif Steel Traders Steeel House, 10/14 Janjikar Street Mumbai-1 Standard Trader (India) 202 Himalaya House, Palton Road Mumbai-1 M/s. United Export Trading Co. 512 Loha Bhawan, P.O. Mello Road Mumbai LIST OF PAPER MANUFACTURERS INDIA

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M/s. Titaghur Paper Mills Co. Ltd., Chartered Bank Bldg., Calcutta M/s. India Paper Pulp Co. Ltd., 8 Clive Row, Calcutta M/s. Bengal Paper Mills Co., 14 Netaji Subhash Marg, Calcutta M/s. Star Paper Mills Ltd., Brabourne Road, Calcutta M/s. Rohtas Industries Ltd., Dalmianagar M/s. Oriented Paper Mills Ltd., Birla Building, 9/1 RN Mukherjee Road, Calcutta M/s. Ashoka Paper Mills Ltd., 8 Russel Street, Calcutta M/s. Straw Products Ltd., (J.K.) Nehru House, 4-B, S. Zafar Marg, New Delhi M/s. Ballarpur Industries Ltd., (Shree Gopal Division), Thaper Hose, 124 Janpath, New Delhi M/s. Orient Paper Mills Ltd. (Amlai, Bhopal) Birla Bldg., 9/7 R.N. Mukherjee Road, Calcutta M/s. Rohit Pulp & Paper Mills Ltd., Rohit Chambers, Ghoga Street, Mumbai-400 001 M/s. Paper & Pulp Conversions Ltd., 1183 Shivajinagar, Fargusson College Road, Poona M/s. Laxmi Board & Paper Mills Pvt. Ltd., 23 Raman Street, 3rd Floor, Mumbai M/s. Sirpur Paper, Sirpur, Kaghaznagar M/s. Andhra Pradesh Pulp & Paper Mills Ltd., Rajamundry-1 M/s. West Coast Paper Mill Ltd., Sreenivas House, Dr. Somani Marg, Fort, Mumbai M/s. Mysore Paper Mills Ltd., Bhadravati M/s. Modhya National Paper Mills Ltd., 7, Museum Road, Bangalore M/s. Punalur Mills Ltd., Punalur, Travancore M/s. Sheshasye Paper & Boards Ltd., p.O. Cauvery (Salem) Erode M/s. Sun Paper Mills Co. Ltd., Post Bag No.2, Cheranmahadevi, Tirnelveli Distt. M/s. Tribeni Tissu Ltd., 3, Middleton Street, Calcutta M/s. Upper India Couper Paper Mills Ltd., Masjid Both, Lucknow M/s. Chemopulp Tissues, A-4, Sect.CX II Meerut Road, Ghaziabad M/s. Swatantra Bharat Paper Mills, L5/7, D.B. Gupta Road, New Delhi M/s. Central Pulp Mills Co., Fort Sonagath, Dist. M/s. Deccan Paper Mills Co. Ltd., Commonwealth Bldg., Poona M/s. Amravathi Shri Venkatesh Paper Mills Ltd., P.O. Udurmalpeth, Madathukula, Tamil Nadu . M/s. Asspcoated Pulp & Paper Mills Ltd., B, Jadav Chambers, 2nd Floor, Ashram 202 Himalaya House, Palton Road M/s. Shamli Paper Mills Ltd., Shamli (U.P.)