Project Profile at a glance

1. Name of the Project: “Plywood Manufacturing Industry”
2. Location within State/Country: Narnaul
Dist, MahendraGarh
State: Haryana
3 .Nearest Rail & Road
Connection: i) Nearest Railway station is Narnol Railway
ii) Nearest Road connection is State Highway and National
Highway
4 .Estimated Capital Cost of the
Project: The total project cost is Rs..00

5 .Capital Equipment : Peeler
Veneer Dryer
Veneer Splinter
Veneer Splicer
Gluing Machine
Conveyor
Hot Press
Sanding Machine (Drum Sending)
Boiler with its accessories
Polishing

6 .Raw materials : Hardwood, Softwood & Adhesives.

7 .Environment Impact: The project is an environment friendly activity, only Government
certified timber will be used for production such as Eucalyptus
and Poplar.
.
8 .Foreign Exchange Cost component: Nil

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9. Time-frame for selection & Completion
Project: Within a period of 12(Twelve) months.

10. Other General Information: 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.

MISSION OF THE PROJECT

 To provide jobs to rural skilled and unskilled people.
 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.

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

4 . State Transport MARKETING CHANNELS:- The marketing channels plays important role in the distribution of the products to reach the potential customers.friendly and cheap as compared to the other plastic products. MARKET POTENTIAL Plywood products always have its demand in the market. We will practice the following marketing channel: Wholesaler & Distributor: These People will represent our product in their region. POTENTIAL CUSTOMERS ARE AS FOLOWS AS  Furniture manufacturing company  Real Estate Developers  Retailers of the Plywood sheets  Government institutions like Railway. The products are eco. The selection of the marketing channels is also important for the growth of the organization. They will be the main contact point for the retailers and they will provide all services on behalf of our organization. The Plywood products like furniture generally popular among the middle class people of the regions. The different Plywood products have different categories of customers. Industrial Merchants: The registration with the trading companies like India mart and TradeIndia will also be done as electronic channels are the most famous and cheapest way to gain customer.

Haryana The factors influenced to choose the plant layout are as follows as 1. we will be having Long Term Agreement with suppliers from those region so that we can produce best quality plywood. Also 2. Availability of the power and water supply: The power supply is from Haryana State Government and apart from that we will be installing Generator of any sort of emergency. 3. Eucalyptus and Poplar Core Veneer of the best quality is easily available in the Western Uttar Pradesh and Uttarakhand Region. Availability 0f skillful labour force:- Most of the plywood units are installed in other district of Haryana and due to that the skilled labour force migrates to those region. Plant location:- The plant is located at following address NARNAUL DIST – MahendraGarh STATE. 5 . we are looking forward to cater the needs of those skilled and unskilled labor of our region. Good transportation facilities:-  The place is well connected to the National Highway and State Highway 4. Availability of raw materials:- Hardwood and softwood is easily available in the region and the transportation cost is also less.

6 . maple. Composite plywood has a core made of particleboard or solid lumber pieces joined edge to edge. Some applications require plywood sheets that have a thin layer of plastic. or a combination of the two. The face is the surface that is to be used or seen. metal. Raw Materials The outer layers of plywood are known respectively as the face. Hardwood plywood used for interior applications and in the construction of furniture usually is made with a urea-formaldehyde resin. In plywood with five or more plies. or may be treated with various chemicals to improve the plywood's flame resistance or resistance to decay. the inter- mediate layers are known as the crossbands. Such plywood is called overlaid plywood and is commonly used in the construction. 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. Some common hardwoods include eucalyptus. The type of adhesive used to bond the layers of wood together depends on the specific application for the finished plywood. although most softwood interior sheets are now made with the same phenol-formaldehyde resin used for exterior sheets. It is finished with a plywood veneer face and back. transportation. Plywood may be made from hardwoods. oak. The most common softwood used to make plywood in India is poplar. Softwood plywood sheets designed for installation on the interior of a structure may use a blood protein or a soybean protein adhesive. pine. Composite plywood is used where very thick sheets are needed. Other plywood sheets may be coated with a liquid stain to give the surfaces a finished appearance. softwoods. The center layer is known as the core. and teak. and agricultural industries. 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.

The most common thicknesses are in the 6. This means it has a C face with a D back. The other class of plywood is known as hardwood and decorative. the crossbands. One class is known as construction and industrial. Type I (Exterior). 7 .2 m) wide by 8 ft (2. and the glue is suitable for use in protected locations. B. The inner plies of all construction and industrial plywood are made from grade C or D veneer. Lengths vary from 6 ft (2. Their face veneers are virtually free of defects.4 mm to 19.5 m).4 m) long. Veneer grades may be N.3 m) increments. while D grade may have numerous knots and splits. the face and back must be of equal thickness. Plywood Classification and Grading There are two broad classes of plywood. plywood used for subflooring in a house is rated "Interior C-D". Likewise the top and bottom crossbands must be equal. the thickness of each must balance around the center. each with its own grading system. no matter what the rating.0 mm range. Plywoods in this class are used primarily for their appearance and are graded in descending order of resistance to moisture as Technical (Exterior). N grade has very few surface defects. Although the core. For example. C.6 m) in 1 ft (0. Plywood’s 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.9 m) and 5 ft (1. Other common widths are 3 ft (0. Special applications like boat building may require larger sheets. depending on the type of glue. Type II (Interior). Sizes Plywood sheets range in thickness from 06 mm to 30 mm. or D.4 m) to 12 ft (3. The most common size for plywood sheets used in building construction is 4 ft (1. Exposure capability may be interior or exterior. and Type III (Interior). A. and the face and back of a sheet of plywoodmay be made of different thickness veneers. For example.

8 .4 m) plywood sheets: The logs are first debarked and then cut into peeler blocks. Preparing the logs  As logs are needed. they have been planted and grown in areas owned by the plywood company. they are picked up from the log decks by rubber-tired loaders and placed on 1a chain conveyor that brings them to the debarking machine. either with sharp-toothed grinding wheels or with jets of high-pressure water. This machine removes the bark. The limbs are removed from the fallen trees with chain saws. they are first soaked and then peeled into strips. Here is a typical sequence of operations for processing trees into standard 4 ft by 8 ft (1. In order to cut the blocks into strips of veneer. The felling may be done with gasoline-powered chain saws or with large hydraulic shears mounted on the front of wheeled vehicles called fellers. or logs.  The trimmed tree trunks. Felling the trees  Selected trees in an area are marked as being ready to be cut down. In most cases. 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. or felled. where they are stacked in long piles known as log decks.2 m by 2. while the log is slowly rotated about its long axis. The Manufacturing Process The trees used to make plywood are generally smaller in diameter than those used to make lumber. These areas are carefully managed to maximize tree growth and minimize damage from insects or fire.

Making the veneer  Before the veneer can be cut. multiple-level trays or wound onto rolls. This process takes 12-40 hours depending on the type of wood. 9 . is ejected from the lathe and a new peeler block is fed into place.  The heated peeler blocks are then transported to the peeler lathe. the peeler blocks must be heated and soaked to soften the wood. the diameter of the block. In any case. These log sections are known as peeler blocks. 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).4 m). When the diameter of the block is reduced to about 3-4 in (230-305 mm). optical scanners look for sections with unacceptable defects. The blocks may be steamed or immersed in hot water.6 m) long. At the same time. suitable for making standard 8 ft (2.5 m) to 8 ft-6 in (2. leaving less than standard width pieces of veneer.  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. where they are automatically aligned and fed into the lathe one at a time. and these are clipped out. or it may be stored in long. the next process involves cutting the veneer into usable widths.4 m) long sheets. and other factors. the remaining piece of wood. As the lathe rotates the block rapidly about its long axis. known as the peeler core. for making standard 4 ft (1.  The long sheet of veneer emerging from / the peeler lathe may be processed immediately. usually about 4 ft-6 in (1.2 m) wide plywood sheets.

they are stacked according to grade. 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. 10 . Underwidth sections have additional veneer spliced on with tape or glue to make pieces suitable for use in the interior layers where appearance and strength are less important. or the crossbands in five-ply sheets—are cut into lengths of about 4 ft-3 in (1.3 m). Once dried the veneer is graded and stacked. Those sections of veneer that will be installed crossways—the core in three-ply sheets. A hot press is used to seal the veneer into one solid piece of plywood. In some dryers. or it may be done automatically using optical scanners.  . This may be done manually. jets of high-velocity. while an optical scanner detects any unacceptable defects in the wood.  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. Selected sections of veneer are glued together. The wet strips of veneer are wound into a roll. heated air are blown across the surface of the pieces to speed the drying process.  As the sections of veneer emerge from the dryer.

When all the sheets are loaded.  The glued sheets are loaded into a multiple-opening hot press. Higher grade sheets pass through a set of 4 ft (1.2° C). In the simplest case of three-ply sheets. Some sheets are run through a set of circular saw blades.2 m) wide belt sanders. Sheets of the same grade-trademark are strapped together in stacks and moved to the warehouse to await shipment. This may be done manually or semi- automatically with machines.  The rough sheets then pass through a set of saws. the face veneer is laid on top of the glued core. which trim them to their final width and length. and the heat causes the glue to cure properly for maximum strength. After a period of 2-7 minutes. and other factors. After a final inspection. mill number. and the whole sheet is run through the glue spreader a second time. The pressure assures good contact between the layers of veneer. the press is opened and the sheets are unloaded.6-13. presses can handle 20-40 sheets at a time. the press squeezes them together under a pressure of about 110-200 psi (7. Intermediate grade sheets are manually spot sanded to clean up rough areas. the process of laying up and gluing the pieces together begins. and the sheet is stacked with other sheets waiting to go into the press.9-157. while at the same time heating them to a temperature of about 230-315° F (109.  The finished sheets are stamped with a grade-trademark that gives the buyer information about the exposure rating. which cut shallow grooves in the face to give the plywood a textured appearance. FUTURE PLANNING FOR THE EXPANSION:- 11 .8 bar). the back veneer is laid flat and is run through a glue spreader. Finally. with each sheet loaded in a separate slot. The short sections of core veneer are then laid crossways on top of the glued back. which sand both the face and back.Forming the plywood sheets  When the appropriate sections of veneer are assembled for a particular run of plywood. any remaining defects are repaired. grade. which applies a layer of glue to the upper surface.

These compressed layers are then oriented at right angles to each other. List of the machine to be used in the manufacturing process and their cost of purchase:- 12 . which is made by shredding the entire log into strands. several new products are under development. like plywood. To improve this figure. The strands are mixed with an adhesive and compressed into layers with the grain running in one direction. Oriented strand board is as strong as plywood and costs slightly less. only about 65-75% of the usable volume of wood in a tree is converted into plywood. rather than peeling a veneer from the log and discarding the core. One new product is called oriented strand board. In most cases.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. and are bonded together.

Spindless Peeling Machine: This machine is used to peel the wood log and make core veneer which is then used for making plywood. We will be using spindles peeling machine which consumes less electricity and produces more veneer. Roller Veneer Dryer: Veneer Dryer is used to dry the veneer so that it absorbs the glue in the next process well and also the moisture is removed from veneer to make the bonding better while manufacturing plywood 13 . 2.General Plywood Processing Machine 1.

Plate and Hot Platens are also fabricated from solid plate as well as complete with Automatic Powerpack. Hydraulic Hot Press Machine: 'BS' Make.3.S. The main body is fabricated from M. Glue Spreader : 4. steam connection pipes and other necessary parts and components. 14 . Hydraulically operated steam/oil heated multi daylight Hot Press in upclosing frame.

5. Steam Boiler : 6. Chimney(30m) with ladder: v 15 .

Heat Recovery unit (Air Pre-Heater): .7. 16 .

NO PARTICULARS AMOUNT 01 Land 02 Site development 03 Building 03 Plant and machinery 04 Furniture and Misc 1.00 MEANS OF FINANCE: SR. Following are the certain sources of the scheme of the finance.00 05 Preliminary and preoperative exp. Finance deals with the arrangements of the sufficient capital for the smooth run of the organization.000. B) TERM LOAN FROM THE COMMERCIAL BANKS: Loan will be applied to the bank once the license is issued C) TERM LOANS FROM THE NATIONAL SMALL INDUSTRIES CORPORATION:- NSIC provides loans at 8. 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. 06 Depreciation 06 Working capital (3months) TOTAL . Finance is the life line of the business.5% to small scale industries for the development of the working capital requirement.NO RATE OF PARTICULARS AMOUNT INTEREST 17 . 30% of the project cost will be financed by the promoter himself.75.SOURCES OF FINANCE:- Supply of finance is very important factor in the establishment of an enterprise is old. COST OF THE PROJECT SR.

no Particulars Cost of the Amount items O1 Filling of the land .00 TOTAL .00 03 Plant and machinery .00 1.NO PARTICULARS AMOUNT 01 Land .00 02 Site development . . LAND: Sr.00 04 Furniture and Misc .00 06 Depreciation . No Particulars Price/Acre Amount 01 Land area .00 .5% NSICL TOTAL .00 03 Building .00 02 11% Bank Loan .00 (2 acre) 2.01 NIL Promoters Capital .00 05 Preliminary and preoperative exp.00 02 Fencing 18 .00 000.00 03 8. SITE DEVELOPMENT Sr.00 TOTAL FIXED CAPITAL: SR.

50.00 1.000.00.75.000.00 4.000. BUILDING Sr.00 Installation 1.000.03 Gardening 04 Gates Total .75.00 .00 machine 02 Steam Boiler 01 13.00 Collector 06 Pressure Reducing 01 2.000.000.25.000.00.00 .00 Dryer 1 20.000.50.00 Pre-Heater) 05 Multi Cyclone Dust 01 1.000. no Particulars Cost of the Amount items 01 Corporate office .00 Station Add Transportation 1.00.000.000. PLANT AND MACHINERY: Sr.00 4.000.00 02 Show room 00 0.00 3.50.000.80.00 03 Chimney(30m) with 01 3.00 ladder 04 Heat Recovery unit (Air 01 1. no Particulars Quantity Amount Peeling Machine 2 50.00 Glue Mixer 2 Glue Spreader 4 01 Hydrualic Hot press 02 55.00.00.00 05 Store room 4.00 03 Toilets 1.00 19 .00 Total .00.75.000.

telephone . 01 Plant and machinery .00 02 Work shed ------. no Particulars Quantity Amount O1 Furniture Office chairs 8set . No Type of assets Cost of assets Rate of Amount dep.water .00 6. 00 Total .A) Sr.00 03 Deposit for internet . PRELIMINARY AND PRE.00 20 .00 10% .00 02 Loan application process fee .00 04 Legal stamp duty and registration .00 05 Travelling .00 5.00 06 Consultancy .00 Total .00 Almirah 8 . Total cost .00 5. No Particulars Amount 01 Deposit for power .00 Sofa 1 .000.DEPRECIATION (P.FURNITURE AND MICELLANOUS ASSETS:- sr.00 Fans 8 .00 Tables 2 .00 Racks 20 .OPERATIVE EXPENSES:- Sr.00 Computer and accessories 1 .

00 05 Selling and office 17000.00 02 Salary and wages 1.15.000.00 4.00.000.00 WORKING CAPITAL REQUIREMENT:- Sr.000.00.000 2.No Particulars No.40.000.00 .00 21.35.000.00 21 .00 .00 02 Hardwood 50 3000 1.000.000.00 03 Other manufacturing 12.00 03 Building .000.00 10% .00 1.00 5% .02 Furniture . RAW MATERIALS:- Sr.09.00.500.000.80.00 2.00 60.15.500.00 03 Adhesive 2 1.80.00 Total 9.04. no Particulars 1 month 3 month 01 Raw materials 9.000.000.00 Total .00 00.00 36. of price /piece Cost /month Cost /year Tons/month (Rs) 01 Softwood 250 2000 5.00 27.06.00 1.00 expenses Total .00 28.000.00 expenses 04 Power and fuels .45.20.75.00.

00 24.16.00 02 Packaging materials 2.000.000.00 .94.M.000. OTHER MANUFACTURING EXPENSES :- Sr.2.00 .00 worker 09 Mechanic-cum 02 3.200.000.00 .20.00 1.00 60.00 06 Machine 10 4.00 00 54.00 8.000.00 3.00 16.80. 01 Paints 4.000.00 02 Power .00 1.00 4.No Particulars P.800.00 1. P.no Name of the No per Salary/head Salaries/month Salaries/year post post 01 Manager 01 15.00 48.No Particulars P.000. P.00 4.00 02 Accountant 01 8.000.26.000.00 03 Office staff 02 7.000.00 Operator 07 Skilled labour 20 3200.A.00 48.000.000.00 15. SALARY AND WAGES:- Sr. POWER AND FUELS:- Sr.00 3.500.00 Electrician Total 31 .000.000.00 22 .400.00 08 Unskilled 110 3000 .000 .00 .00 96. 01 Fuels .00 .000.800.A.00 04 Chemist 01 6.00 48.000.000.00 .00 Total .00 05 Supervisor 01 5.000.00 03 Repairing of the machines 4.000.60.M.

01 Raw materials(100%) 02 Wages (80%) .00 07 Selling and administrative .00 Total 17.00 .00 48.No Particulars P.00 .No Particulars P. P.000.No Particulars P.A.00 03 Transportation 10.000.00 23 .00 .M.000.00 36.00 05 Office.00 expenses (90%) 06 Depreciation(100%) . selling .000.00 .00 Total .00 .M. 01 Wages (20%) 00 .00 expenses (100%) Total 00 00 FIXED COST:- Sr. P.000.SELLING. distribution 00 . P.00 1.44.87.00 9.00 .000.000.00 1.00 06 Interest term loans (20%) . 01 Postage and stationeries 3.20. OFFICE.00 02 Telephone bills/internets 4.00 VARIABLE COST: Sr.00 03 Interest on w/c (20%) .00 03 Power and fuels(90%) 04 0ther manufacturing .00 . DISTRIBUTION EXPENSES: Sr.00 expense(100%) 05 Interest w/c loans (80%) 00 .M.00 04 Interest on term loans (80%) .A.00 5.00 02 Power and fuels(10%) . Total 12.000.A.00 .000.000.

00 02 8 mm plywood sheet 3*6 30 .00 .00 .COST OF THE PRODUCTION:- Sr.00 ESTIMATED SALE:- Sr.00 03 Other manufacturing .00 4*8 5 .00 .00 0 TOTAL 165 00 .00 4*6 67 .00 .00 .00 05 Repairing of machine .00 .00 .00 .00 expenses 04 Consumables .00 4*8 66 .00 .00 .00 06 Depreciation @10% 07 Plant and machineries .00 .00 TOTAL 207 .00 .00 Total .00 02 Salary and wages . no Particulars 1 month 1 year 01 Raw materials 00 .00 3*8 34 .00 .00 3*8 44 .00 .00 Furniture . no Items No items Price Monthy Annually sales sold /item sales /month 01 6mm plywood sheets 3*6 21 .00 .00 03 12 mm plywood sheet 24 .00 4*6 50 .

00 @8.00 .00 PROFITABILITY:- Sr.00 .00 .00 . 01 Sales .00 .no Particulars P.00 .00 4*8 100 . selling.00 .00 .00 . .00 TOTAL .00 4*8 50 .00 .00 3*8 33 .M P.00 profit 04 Less Office.00 4*6 50 .00 06 Net profit .00 TOTAL 300 .00 03 Gross .00 .00 3*8 66 .00 04 18 mm plywood sheet 3*6 25 .5%(SIDC) .00 02 Less Cost of production .00 4*6 100 .00 .00 . 3*6 44 .A.00 .00 distribution 05 Less Interest on loan @11% (Bank) .00 25 .00 .00 .

97.P= _____________ X100 =32. 90.E.284. 308.00 26 .E.00 B.BREAK EVEN POINT: Formula used FIXED COST B.P= X 100 CONTRIBUTION CONTRIBUTION=SALES-VARIABLE COST CONTRIBUTION= 18.21% 58.