NSIC Project Profiles

WOODEN FURNITURE

1. INTRODUCTION
The demand for the furniture made up of woods is growing due to the increased
standard of living of people and outlook. On occassions like wedding, it has become
customary to gift wooden furniture like double bed, sofa, dressing table, dining table
to the daughter.

2. MARKET
As the furniture would not have any fixed brand or company name, therefore, there
would be less competition.
Wooden furniture also required in government and commercial establishments. Due
to non-availability of wood, these days wood is being imported from countries like
Malaysia, Sri Lanka, etc. For manufacture of furniture, wood is available from the
local depots/forest areas. There is ever growing market for wooden furniture.

3. MANUFACTURING PROCESS
The line of process is used for wooden furniture is made as per the measurements;
shaping, bending & chistling as per design; finishing touch with sand paper; finally
apply varnish/paint/lamination; and furniture can be laminated using laminated
sheet.

4. PRODUCTION CAPACITY PER ANNUM

S.No Particulars Nos. Rate Total Amt.

1 Sofa with centre table 36 5500 198000

2 Sofa with centre table 36 5000 180000
3 Dining table with six chairs 36 6000 216000
4 Double bed 36 5000 180000
5 Dressing table 60 2200 132000
6 Other scrapes of wood, dust, chips, 36 20000
etc
Total 204 926000

5. PROJECT COST/CAPITAL INVESTMENT

S.No Description Amount Rs.
1 Fixed Capital 47000
2 Working Capital for 1 month(s) 71825
3 Preliminary & Preoperative Expns 10000
Total Project Cost 128825
NSIC Project Profiles

6. MEANS OF FINANCE
S.No Description %age Amount Rs.
1 Promoter Contribution 15% 19324
2 Subsidy /Soft Loan 20% 25765
3 Term Loan 65% 83736
Total 128825

7. FINANCIAL ASPECTS

A. FIXED CAPITAL
i. Land and Buildings Rented Rs. 2000 per month

ii. Machinery and Equipment

S.No Description Qty. Rate Amount Rs.
1 Automatic wood working machine, LS 40000
surface and thickness planner, circular
saw, drilling and grinding attachment of
2 HP motor
2 Other tools like haksa, benchwise LS 5000
hammer, etc
3 Electrification and installation LS 2000
4 Miscellaneous expenses LS 1000
Total 47000

B. WORKING CAPITAL

i. Salaries & Wages (per month)

S.No Description Nos. Sal/mon. Amount Rs.
1 Carpenter/Entrepreneur 1 2500 2500
2 Skilled labours 1 2000 2000
3 Unskilled labours 2 1000 2000
Total 6500

ii. Raw Material (per month)

S.No Description Unit Qty. Rate Amount Rs.
1 Sheesham, teak, wood, etc cu ft 60 500 30000
2 Ply sq ft 725 11 7975
3 Sunmaica sq ft 300 17 5100
4 Plane glass of thickness Nos. 3 1000 3000
5 Mirror Nos. 3 250 750
6 Cushions sets 5 1200 6000
7 Fevicol kg 30 160 4800
8 Others LS 200
Total 57825
NSIC Project Profiles

iii. Utilities (per month)

S.No Description Unit Amount Rs.
1 Power LS 2000
2 Water LS 500
Total 2500

iv. Other Expenses (per month)

S.No Description Amount Rs.
1 Postage & Stationery Expenses 500
2 Conveyance expenses 500
3 Repairs and maintenance 500
4 Insurance 1000
5 Miscellaneous Expenses 500
Total 3000

v. Total Working Capital (per month)

S.No Description Amount Rs.
1 Rent 2000
2 Salaries and Wages 6500
3 Raw Material 57825
4 Utilities 2500
5 Other Expenses 3000
Total 71825

8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs.
1 Total Working Capital 861900
2 Depreciation @ 15% 7050
3 Interest @ 12% 10048
Total 878998

9. TURNOVER (PER YEAR)

S.No Description Unit Qty. Rate Rs. Amount Rs.
1 Sofa with centre table Nos. 36 5500 198000
2 Sofa with centre table Nos. 36 5000 180000
3 Dining table with six chairs Nos. 36 6000 216000
4 Double bed Nos. 36 5000 180000
5 Dressing table Nos. 60 2200 132000
6 Other scrapes of wood, dust, chips, etc LS 36 20000
Total 926000
NSIC Project Profiles

10. FIXED COST (PER YEAR)

S.No Description Amount Rs.
1 Depreciation 7050
2 Interest 10048
3 Rent 24000
4 Salaries & Wages @ 40% 31200
5 Other Expenses incl. Utilities @ 40% 26400
Total 98698

11. PROFIT ANALYSIS & RATIOS

1 Net Profit Rs. 47002

2 Percentage of Profit on Sales 5%
3 Percentage of Return on Investment 36%
4 Break Even Point 68%