NSIC

Project Profiles

STEEL FURNITURE
1. INTRODUCTION
Steel furniture comprise almirahs, chairs, tables, cabinets, racks, sofa sets, etc. They
are required for domestic purposes, offices, factories and in almost all places. Steel
fast moving consumables. Due to growth of population and living conditions, the
requirement of steel furniture is also increasing.

2. MARKET
The demand for these items are increasing day by day due to development of living
standards in tribal areas. There is a good demand for these items mainly for offices,
institutions, commercial places in all tribal areas, towns/big villages.
3. MANUFACTURING PROCESS
The manufacturing process of steel furnitures involves mainly cutting of sheets, tubes,
flats to desired size, folding, bending, drilling, punching, rivetting and assembling as
per the drawings. Finally, the items are to be spray painted.

4. PRODUCTION CAPACITY PER ANNUM

Capacity
Selling Price
Total Revenue

Almirahs

Nos
Rs.

300
2750
825000

Chairs

1000
125
125000

Tables/Cots

200
900

180000

5. PROJECT COST/CAPITAL INVESTMENT

S.No

1
2
3

Description

Fixed Capital
Working Capital for
Preliminary & Preoperative Expns
Total Project Cost

Amount Rs.

110000
161800
5000
276800

month(s)

6. MEANS OF FINANCE
S.No

1
2
3

Description

Promoter Contribution
Subsidy /Soft Loan
Term Loan
Total

%age

Amount Rs.

15%
20%
65%

41520
55360
179920
276800

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Project Profiles

7. FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land and Buildings

Rented

Rs. 2000

per month

ii. Machinery and Equipment

S.No

1
2
3
4
5
6
7
8
9
10
11
12
13

Description

Qty.

Pedal operated shearing m/c - 4"

Hand operated sheet bending m/c
Arc welding transformer upto 250 amps
Air compressor with accessories -25 ltrs
Drilling m/c - 1/2"
Gas welding
Spot welding - 5 KVA
Hand press
Testing equipment
Cost of moulds and other fixtures
Electrification and installation charges
Office furniture
Miscellaneous expenditure
Total

1
1
1
1
1
LS
1
2
LS
LS
LS
LS
LS

Rate

20000
25000
5500
6500
5000
10000
6000

Amount Rs.

20000
25000
5500
6500
5000
3000
10000
12000
5000
5000
5000
5000
3000
110000

B. WORKING CAPITAL
i. Salaries & Wages (per month)
S.No

1
2
3

Description

Nos.

Skilled person/Entrepreneur
Skilled persons
Unskilled persons
Total

1
2
4

Sal/mon. Amount Rs.

3000
2500
1500

3000
5000
6000
14000

ii. Raw Material (per month)

S.No

1
2
3
4

Description

MS sheets
Tubes, pipes, plates, etc
Paints, electrodes, gas, etc
Misc. materials
Total

Unit

Qty.

MT
LS
LS
LS

1.5

Rate

24000

Amount Rs.

36000
10000
12000
1000
59000

iii. Utilities (per month)

S.No

1
2

Description

Power
Water

Unit

LS
LS
Total

Amount Rs.

1700
200
1900

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Project Profiles

iv. Other Expenses (per month)

S.No

1
2
3
4
5

Description

Amount Rs.

Postage, Telephones & Stationery Expenses

Transportation & Conveyance Expenses
Consumable stores
Reparis and Maintenance Expenses
Miscellaneous Expenses
Total

500
2000
500
500
500
4000

v. Total Working Capital (per month)

S.No

1
2
3
4
5

Description

Amount Rs.

Rent
Salaries and Wages
Raw Material
Utilities
Other Expenses
Total

2000
14000
59000
1900
4000
80900

8. COST OF PRODUCTION (PER ANNUM)

S.No

1
2
3

Description

Total Working Capital

Depreciation
Interest
Total

Amount Rs.

@
@

970800
16500
21590
1008890

15%
12%

9. TURNOVER (PER YEAR)

S.No

1
2
3

Description

Almirahs
Chairs
Tables/Cots

Unit

Qty.

Nos
Nos
Nos

300
1000
200

Rate Rs.

2750
125
900

Total

Amount Rs.

825000
125000
180000
1130000

10. FIXED COST (PER YEAR)

S.No

1
2
3
4
5

Description

Depreciation
Interest
Rent
Salaries & Wages
@
Other Expenses incl. Utilities @
Total

Amount Rs.

16500
21590
24000
67200
28320
157610

40%
40%

11. PROFIT ANALYSIS & RATIOS

1
2
3
4

Net Profit
Percentage of Profit on Sales
Percentage of Return on Investment
Break Even Point

Rs.

121110
11%
44%
57%