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LEAF CUPS AND PLATES


PRODUCTION CAPACITY : 90 lakh leaf cups and
45 lakh leaf plates
1.0 PRODUCT AND ITS APPLICATIONS
Leaf cups and plates are traditionally made by hand in Indian villages. These
are commonly used for serving food at marriages, religions and social
functions. The laborious craft can now be converted into a machine
operation to make these containers in elegant shapes and sizes. Such
cups and plates are made out of plant leaves of beautia, arecanut sheath,
banana etc. These have good dimensional stability and are inexpensive,
hygienic and biodegradable.
2.0 MARKET POTENTIAL
There are more than 5,000 leaf cup making machines in operation in U.P., Bihar, M.P., Jharkhand,
Himachal Pradesh, Gujarat, Maharashtra, A.P., Karnataka. There is a large scope for setting up
cottage scale units in North Eastern Region. The cups and plates are also in large demand by
hawkers, fast food restaurants, star-hotels, mass feeding and for prasadam in religious institutions.
3.0 BASIS AND PRESUMPTIONS
a) The unit will work for 300 days per annum on single shift basis.
b) The unit can achieve its full capacity utilization during the first year of operation.
c) The wages for skilled workers are taken as per prevailing rates in this type of industry.
d) Interest rate for total capital investment is calculated @ 12% per annum.
e) The entrepreneur is expected to raise 20-25% of the capital as margin money.
f) The unit would construct its own building.
g) Costs of machinery and equipment are based on average prices of machinery manufacturers.
4.0 IMPLEMENTATION SCHEDULE
Project implementation will take a period of 8 months. Break-up of the activities and relative time
for each activity is shown below:
L Scheme preparation and approval : 01 month
L SSI provisional registration : 1-2 months
L Sanction of financial supports etc. : 2-5 months
L Installation of machinery and power connection : 6-8 months
L Trial run and production : 01 month
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5.0 TECHNICAL ASPECTS
5.1 Location
The plant would have 5 machines. It can be located in any village where leaves of banana, beautia,
bauhinia and arecanut palm sheaths are available. It can also work without electricity.
5.2 Process of Manufacture
The leaf cup machine is a simple pedal operated machine, manually operated with minimum power
consumption. It requires 300 watts of electric power. It can also work without power by kerosene
oil blow lamp. The leaves are washed and dried to retain their pliability and kept in a polythene bag
to avoid drying before use. The leaves are placed on the lower die platten, the pedal is pressed
down and released after a few seconds. All the operation like folding, trimming, pressing into shape
and drying are done in a single operation by pressing the pedal lever. The leaf cup, subjected to
heating to 150 degree C for 10 seconds also gets sterilized.
6.0 POLLUTION CONTROL
There is no major pollution problem associated with this industry except for disposal of waste
which should be managed appropriately.
7.0 ENERGY CONSERVATION
No coal or LDO is being used. If kerosene oil blow lamp is used, care should be taken in regularly
cleaning the nozzles and proper air mixture to minimize smoke.
8.0 PRODUCTION CAPACITY
Quantity : Leaf cups 90 lakh + leaf plates 45 lakh
Installed capacity : 125 lakh cups + 65 lakh plates
Optimum capacity utilization : 70%
Working days : 300/annum
Manpower : 7
Utilities
Motive Power : 2 kW
Water : 1 kL/day
9.0 FINANCIAL ASPECTS
9.1 Fixed Capital
9.1.1 Land & Building Amount (Rs. lakh)
Land 100 sq.m. : 0.10
Built up Area 50 sq. m. : 1.50
---------------
Total cost of Land and Building : 1.60
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9.1.2 Machinery and Equipment
Description Amount (Rs. lakh)
Leaf cup and plate making machine
lever on bearings - 5 0.25
Dies with circular dia - 15 0.39
Die square katori - 15 0.15
Blow lamp with fittings attachment 5 0.03
Tool kit - 1 0.01
------
0.83
Erection and electrification
@ 10% of machinery cost 0.09
Office furniture & fixtures : 0.08
Total : --------
1.00
9.1.3 Pre-operative Expenses
Consultancy fee, project report, deposits with : 0.10
electricity department etc.
9.1.4 Total Fixed Capital : 2.70
(9.1.1+9.1.2+9.1.3)
9.2 Recurring expenses per annum
9.2.1 Personnel
Designation No. Salary Amount
Per month (Rs.lakh)
Manager 1 4,000 0.48
Unskilled workers 7 1,800 1.52
______
2.00
Perquisites @ 15% ______
0.30
---- ------
Total : 8 2.30
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9.2.2 Raw Material including packaging materials
Particulars Qty.(MT) Rate Amount
(Rs. lakh)
Leaves 9.60
Packing material 2.40
-------
Total: 12.00
9.2.3 Utilities Amount (Rs. lakh)
Power 0.29
Water 0.01
-------
Total: 0.30
9.2.4 Other Contingent Expenses Amount (Rs. lakh)
Repairs and maintenance@10% 0.09
Consumables & spares
Transport & Travel 0.09
Publicity
Postage & stationery
Telephone
Insurance 0.20
------
Total: 0.38
9.2.5 Total Recurring Expenditure Amount (Rs. lakh)
(9.2.1+9.2.2+9.2.3+9.2.4) 14.98
9.3 Working Capital
Recurring Expenditure for 3 months 3.75
9.4 Total Capital Investment Amount (Rs. lakh)
Fixed capital (Refer 9.1.4) 2.70
Working capital (Refer 9.3) 3.75
-------
Total: 6.45
10.0 FINANCIAL ANALYSIS
10.1 Cost of Production (per annum) Amount (Rs. lakh)
Recurring expenses (Refer 9.2.5) 14.98
Depreciation on building @5% 00.08
Depreciation on machinery @10% 00.10
Depreciation on furniture @20% 00.02
Interest on Capital Investment @12% 00.80
--------
Total: 15.98
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10.2 Sale Proceeds / Annual turnover
Item Qty. Rate Amount (Rs.lakh)
(MT) per 100
Leaf plates (assorted) 45 lakh Rs. 30 13.50
Leaf cups (assorted) 90 lakh Rs. 10 9.00
-------
22.50
10.3 Net Profit per year
= Sales - Cost of production
= 22.50 - 15.98
= Rs. 6.52 lakh
10.4 Net Profit Ratio
= Net profit X 100
Sales
= 6.70X 100
22.5
= 28.98 %
10.5 Rate of Return on Investment
=
Net profit X 100
Capital Investment
=
6.70 X 100
6.45
= 103.88 %
10.6 Annual Fixed Cost Amount (Rs. Lakh)
All depreciation 0.20
Interest 0.80
40% of salary, wages, utility, contingency 1.12
Insurance 0.02
-------
Total: 2.14
10.7 Break even Point
=
Annual Fixed Cost X 100
Annual Fixed Cost + Profit

=
2.14 X 100
2.14 + 6.70
= 24%
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11.0 ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS
Shree Murugan Industries,
Plot No. 68/W, Hootagalli
Industrial Area
Belawadi Post
Mysore - 571186
AMI Eng.
Station Road,
Opposite Veena Cinema
Patna - 800 001
Chandan Eng Works,
Industrial Estate, Kurji
Patna - 800 010
Kalpataru Enterprises,
HIG, Sector E, Aliganj Scheme,
Lucknow - 226 020
Nalanda Agro Works,
Nalanda Nagar, Kurji
Patna- 800 010
Anil & Co.
68, NGO's Colony,
Rajendra Nagar,
Mysore - 570 007
Shah Eng. Co.,
C-18, Ajanta Commercial Centre,
Ashram Road,
Ahmedabad - 380 004
12.0 OTHER SPECIAL FEATURES
A careful selection of product mix is necessary based on the local market demand and availability
of raw materials. The facilities can also be utilised to manufacture different sizes and shapes of
cups and plates for fuller utilisation of capacity.