PROJECT REPORT

On

Manufacturing Offset Printing and Publisher

Submitted

As part of requirement of The Training

under

New Entrepreneur cum-Enterprise Development

Scheme

Government of Tamil Nadu

Conducted by

Entrepreneurship Development Institute, Guindy,

Chennai

Prepared by

Name : J. REVATHI

Address: No.16, MRM Road, Car Complex, West

Tambaram, Chennai - 45.

Mobile: 95660 55990

Email: bhaghavanpress@gmail.com

Training at Sri Venkateswara Printers, at

No.6, Azhagesan First Street, Vadapazhani, Chennai.

Financed by TIIC Bank at Tambaram, Tambaram

 Branch.

TABLE OF CONTENT

Sl. No. Description Page No.

1. Introduction of Printing

2. Business Plan Preparation through Software Developed by EDI

3. Business Plan prepared through Manual Format

4. Industrial Visit Letter and Reports

5. Market Survey Questionnaire & Analysis

6. Copy of Machinery / Catalogue & Proforma Invoice / Quotation

7. Raw material Evidence

8. Copy of Qualification, Experience Certificate, Residential Proof

9. Part I registration under MSME

1. INTRODUCTION OF PRINTING
 Printing is a process for reproducing text and images using a master form or
template. The earliest examples include Cylinder seals and other objects such as the
Cyrus Cylinder and the Cylinders of Nabonidus. The earliest known form of
woodblock printing came from China dating to before 220 A.D. Later developments
in printing include the movable type, first developed by Bi Sheng in China. The
printing press, a more efficient printing process for western languages with their more
limited alphabets, was developed by Johannes Gutenberg in the fifteenth century.

Modern printing is done typically with ink on paper using a printing press. It is
also frequently done on metals, plastics, cloth and composite materials. On paper it is
often carried out as a large-scale industrial process and is an essential part of
publishing and transaction printing.

Printing spread early to Korea and Japan, which also used Chinese logograms,
but the technique was also used in Turpan and Vietnam using a number of other
scripts. This technique then spread to Persia and Russia.[6] This technique was
transmitted to Europe from China, via the Islamic world, and by around 1400 was
being used on paper for old master prints and playing cards.[7] However, Arabs never
used this to print the Quran because of the limit of Islam doctrine.

In the Middle East

Block printing, called tarish in Arabic developed in Arabic Egypt during the
ninth-tenth centuries, mostly for prayers and amulets. There is some evidence to
suggest that these print blocks made from non-wood materials, possibly tin, lead, or
clay. The techniques employed are uncertain, however, and they appear to have had
very little influence outside of the Muslim world.

In Europe
The earliest known woodcut, 1423, Buxheim, with hand-colouring Block
printing first came to Europe as a method for printing on cloth, where it was common
by 1300. Images printed on cloth for religious purposes could be quite large and
elaborate. When paper became relatively easily available, around 1400, the medium
transferred very quickly to small woodcut religious images and playing cards printed
on paper. These prints produced in very large numbers from about 1425 onward.

The Printing press

Johannes Gutenberg's work on his printing press began in approximately 1436
when he partnered with Andreas Dritzehen a man he had previously instructed in
gem-cutting and Andreas Heilmann, the owner of a paper mill.[13] It was not until a
1439 lawsuit against Gutenberg that an official record exists; witness testimony
discussed type, an inventory of metals (including lead) and his type mould.

Rotary printing press

The rotary printing press was invented by Richard March Hoe in 1843. It
uses impressions curved around a cylinder to print on long continuous rolls of paper or
other substrates. Rotary drum printing was later significantly improved by William
Bullock.

Letterpress
Letterpress printing is a technique of relief printing. A worker composes and
locks movable type into the bed of a press, inks it, and presses paper against it to
transfer the ink from the type which creates an impression on the paper.

Offset
Offset printing is a widely used printing technique. Offset printing is where
the inked image is transferred (or "offset") from a plate to a rubber blanket. An offset
transfer moves the image to the printing surface. When used in combination with the
lithographic process, a process based on the repulsion of oil and water; the offset
technique employs a flat (planographic) image carrier. So, the image to be printed
obtains ink from ink rollers, while the non-printing area attracts a film of water,
keeping the non-printing areas ink-free.
 Currently, most books and newspapers are printed using the technique of
Offset.

Varieties of Printing are:

Offset Printing
Flexo Printing
Flex Printing
UV Printing
Any Media Printing
2. BUSINESS PLAN PREPARATION
THROUGH SOFTWARE
DEVELOPED BY EDI
3. BUSINESS PLAN PREPARED
THROUGH MANUAL FORMAT
 BUSINESS PLAN FORMAT FOR MSMEs

1.0.

BHAGHAVAN PRINTER AND PUBLISHER

Name of the Firm
vz;zq;fs; tz;zkhFk;
MANUFACTURING UNIT OFFSET PRINTING
Name of business/project
AND PUBLISHER
MUDICHUR, TAMBARAM, KANCHEEPURAM
Location
DISTRICT
Type of Organization
PROPRIETRIX
(Proprietary/Partnership)
No.16, MRM ROAD, CAR COMPLEX,
WEST TAMBARAM,
Address (with Phone, e-
CHENNAI - 600 045.
mail)
044 42043119
bhaghavanpress@gmail.com
Name of the Chief
-
Promoter(s)
Date of Birth 02.06.1993
Names of Partners NA

1.1. Educational Qualification:

Course (from Major Yr. of

School/University/Institute
SSLC/Diploma) Subject Passing
Madras University A.M.Jain FM, M A/c
B.Sc ISM 2011-2014
College, Minambakkam etc.,

1.2. Special Training:

Achievement/Re
Training in Institute Duration
mark
- - - -

1.3. Work experience (Past & Present):

Organization Position Nature of work Duration

Sri Venkateswara Managing & Back Trapping
Account Supervisor 1 year
Printers of Accounts
1.4.

Promoters Annual Income (Last Year) -

Assets owned by the promoter (s)
-
Movable
Immovable -

1.5. COMPANYS MAIN OBJECTIVE (Why does the company exist?):

Thoughts to print - vz;zq;fs; tz;zkhFk;

To be a Leader in Converting Customers thoughts into Print and adding
Colors
To be a Pioneer in the Printing and Publishing Industry, by Delivering to the
Customers with High-end Equipments and Cutting Edge Technology, Cost
Effective and Timely Delivery.

1.6. FINANCIAL GOALS:

a. To have a sales revenue amounting to Rs. 200 Lakhs by 5 years

b. To obtain a profit margin of 40%
c. To obtain a profit per business partner of NA

1.7. DESCRIPTION OF THE PRODUCT or SERVICE:

Designing
Printing
Lamination
Binding
Packaging

1.8. IDENTIFICATION OF THE CUSTOMERS:

Colleges, Universities
Public
Shops
Corporates and
Others

Needs satisfied by the product or service:

1.9. IDENTIFICATION OF THE COMPETITION (Major competitors):

Competitors in and around our area:

Print-X
SRM Printers
VSR Printers
Strengths/weakness of the competition:
Strength Weakness
Existing Printers Poor Customer Service
Experienced Manpower Poor Timely Delivery

1.10. ADVANTAGES AND DISADVANTAGES OF THE PRODUCT AND YOUR

COMPANY

Price Cost Effective

Quality The Best
Terms of Delivery Well before the Time
Payment Methods Cash / DD / Cheque
Customer Service Best Product with Best Service with Cost Effective
Others: Disadvantages : New Comer

1.11. MESSAGE TO BE COMMUNICATED TO THE CUSTOMERS:

A Place for Thoughts to print - vz;zq;fs; tz;zkhFk;

1.12. MARKETING AND MEANS OF COMMERCIALIZATION:

Present demand & Very High Demand Due to Increase in Number of Colleges
supply Improvement in Indian Economy brought Good Scope for All
Businesses which brings Business to Us.
Competition High Yielding Industry
Target clients Colleges, Universities
Public
Shops
Corporates and
Others
Marketing strategy Promotion through word of mouth by Satisfied Customers
(USP) Personal Visits to Colleges, Universities etc.,
Personal Touch with Students Coming for Project Works
1.13. Manufacturing Process:

Technical know-how Advance Machineries with Cutting Edge Technology

availability with Skilled Man Power
Step-by-step description of Designing
the manufacturing process Printing
(raw material-finished Lamination
goods) Binding
Packaging

1.14. Production Programme:

No. of working days/annum 300 days/ Per Annum

No. of working shifts (8hrs)/day 2 Shifts
Installed capacity (annual) 100 %
Utilized capacity (%)
Year - I 70%
Year - II 80%
Year - III 100%
Quantity Produced/Yr Capacity
S.No. Item(s)
Utilization(%)
- NA - -

2.0 Details of the Proposed Project:

2.1 Land and Building:

S.No. Particulars Area required Total value Remarks

1 Land - - -
2 Building 2,400 - Lease

2.2. Machineries/Equipments:

Nos.
S.No. Description Rate (Rs) Total value(Rs)
required
1. 4 Color Offset Machine 1 74,99,100 74,99,100
2. Paper Cutting Machine 1 8,10,600 8,10,600
3. Perfect Binding Machine 1 5,49,150 5,49,150
4. Book Stitching Machine 1 1,30,200 1,30,200
Punching & Creasing
5. 1 3,05,050 3,05,050
Machine
6. Computers 5 40,000 2,00,000
TOTAL 94,94,100
2.3. Misc. Fixed Assets:

Total
S.No. Particulars Nos. required Rate (Rs.)
value(Rs.)
1. Electrical, Furniture - - 2,05,900

2.4. Preliminary and Pre-operative Expenses:

S.No. Particulars Amount (Rs) Remarks

1 Interest during implementation - -
2 Establishment expenses 25,000 Rent
3 Start-up expenses - -
4 Misc. expenses - -
TOTAL 25,000

2.5. Working Capital:

S. Total Value (Rs)

Item Duration
No Ist YR IInd YR IIIrd YR IVth YR Vth YR
Raw-
10%
1. material 4,84,000 5,80,000 6,77,000 7,74,000 8,70,000
Purchase
stock
Finished 25% of
2. 28,13,000 33,76,000 39,38,000 45,01,000 50,63,000
goods stock Sales
Sales on
3. credit- - 18,75,000 39,56,000 46,15,000 52,75,000 59,33,000
Debtors
Sundry
4. - (4,03,000) (4,84,000) (5,64,000) (6,45,000) (7,25,000)
Creditors
Production
5. - (88,000) (1,04,000) (1,22,000) (1,30,000) (1,57,000)
expenses
Cash &
6. Bank - 27,000 44,92,000 1,05,33,000 1,81,54,000 2,73,51,000
Balance
Loans and
7. - 5,00,000 5,00,000 5,00,000 5,00,000 5,00,000
Advances
TOTAL 5208000 10610000 17588000 26146000 36278000
2.6. Total Cost of the Project:

S.No. Particulars Total value (Rs)

1. Fixed Capital (sum of 2.1+2.2+2.3) 97,00,000
2. Working Capital (Sum of 2.5) 52,08,000
3. Preliminary & Preoperative Expenses (sum of 2.4) 25,000
TOTAL 1,49,33,000

2.7. Means of Finance:

S.No. Particulars Amount (Rs) Remarks

1. Own Investment/Equity 7,46,650 -
2. Term Loan 92,15,000 -
3. Working capital Loan 49,71,350 -
4. Any other source (subsidy etc) - -
TOTAL 1,49,33,000
3.1. Sales Revenue: (Please refer item No. 5.1 (Pricing)

Sales Realization
Quantity Rate/Unit (Rs)
S.No. Items (s) (Rs) 50%
Sold/Yr 100% Capacity
Capacity
1. Printing - 93,60,000 46,80,000
2. Die Punching - 37,44,000 18,72,000
3. Binding - 55,00,000 27,50,000
4. DTP & Designing - 39,00,000 19,50,000
TOTAL 2,25,04,000 1,12,52,000

4.1. Raw material (annual) Requirement:

Total value
S.No Item (s) Quantity Rate (Rs) (Rs) 50%
Capacity
Materials for Printing & Offset
1. - - 23,40,000
Printing
2. Material for Die Punching - - 9,36,000
3. Material for Binding - - 10,92,000
4. Material for DTP & Designing - - 4,68,000
TOTAL 48,36,000
4.2. Utilities:

S.No Particulars Annual Expenditure Remarks

1. Power/electricity 4,50,000 -
2. Water - -
3. Coal/Oil/Steam - -
4. Transport - -
5. Any other item - -
Total 4,50,000

4.4. Man Power (Salaries/Wages):

Annual
Wages/Salary
S.No. Particulars No. expenses (Rs)
p.m. (Rs)
50% Capacity
1 Skilled 6 58,000 3,48,000
2 Semi-skilled 2 19,000 1,14,000
3 Unskilled 3 22,000 1,32,000
4 Office staff - - -
5 Any other - - -
TOTAL 99,000 5,94,000

4.5 Repairs and Maintenance:

S.No. Particulars Amount (Rs) 50% Capacity

1. Machinery & Other Equipments 1,50,000

4.6. Selling and Distribution Expenses:

Amount (Rs)
S.No Particulars Remarks
50% Capacity
1. Publicity expenses 2,00,000 -
2. Traveling 50,000 -
3. Freight - -
4. Commission - -
5. Misc. 88,000 -
TOTAL 3,38,000
4.7. Administrative Expenses:

Amount (Rs)
S.No. Particulars Remarks
50% Capacity
1. Stationery & Printing 2,00,000 -
2. Rent 1,50,000 -
3. Post/telephone 2,00,000 -
4. Entertainment Expenses 50,000 -
5. Miscellaneous 7,05,000 -
TOTAL 13,05,000

4.8. Interest:

Loan amount Installment

Year Interest (Rs) Balance (Rs)
Outstanding (Rs) (Rs)
Ist 96,80,000 4,65,000 19,36,000 77,44,000
IInd 77,44,000 8,13,000 19,36,000 58,08,000
IIIrd 58,08,000 5,81,000 19,36,000 38,72,000
IVth 38,72,000 3,48,000 19,36,000 19,36,000
Vth 19,36,000 1,16,000 19,36,000 -

4.9. Depreciation:

S.No. Type of Asset Cost of Asset Expected Life Depreciation

1. Offset Machine 74,99,100 25 Millions Pages 11,24,865
2. Paper Cutting Machine 8,10,600 30 Millions Pages 1,21,590
3. Perfect Binding Machine 5,49,150 2 Millions Pages 82,373
4. Book Stitching Machine 1,30,200 30 Millions Pages 19,530
5. Punching & Creasing 3,05,050 1 Million Pages 45,757
Electrical, Furniture &
6. 2,05,900 5 years 30,885
Fittings
7. Computers 2,00,000 6 years 30,000
TOTAL 14,55,000
 5.1. Pricing:

Perfect Book
4 Color Offset Paper Cutting
Binding Stitching
Machine Machine
Machine Machine
Product 1 Product 2
Product3 Product 4
Amount Amount
Amount Amount
Total product cost
per unit (fixed
44,36,975 17,74,790 26,07,197 18,48,740
cost/unit+ variable
/unit)+tax
Desired Profit 2,43,025 97,210 1,42,803 1,01,260
Sale Price
46,80,000 18,72,000 27,50,000 19,50,000
(including tax)

5.2 Profitability Projections:

S.
Particulars Amount (Rs)
No
Year-1 Year-2 Year-3 Year-4 Year-5
A Sales realization 1,12,52,000 1,35,02,000 1,57,53,000 1,80,03,000 2,02,54,000
Cost of producing
1 Raw materials 43,52,000 57,07,000 66,73,000 76,41,000 86,09,000
2 Power/Fuel 4,50,000 5,40,000 6,30,000 7,20,000 8,10,000
3 Salaries/wages 5,94,000 7,13,000 8,32,000 9,50,000 10,69,000
4 Rent 1,50,000 1,80,000 2,10,000 2,40,000 2,70,000
Selling&
B 5 distribution 3,38,000 4,05,000 4,73,000 5,40,000 6,08,000
expenses
Administrative
6 14,55,000 17,46,000 20,37,000 23,28,000 26,19,000
expenses
7 Interest 4,65,000 8,13,000 5,81,000 3,48,000 1,16,000
8 Closing Stock (32,97,000) (39,56,000) (46,15,000) (52,75,000) (59,33,000)

TOTAL B (1 TO 8) 45,07,000 61,48,000 68,21,000 74,92,000 81,68,000

C Less: Depreciation 14,56,000 12,38,000 10,53,000 8,92,000 7,61,000

Gross profit/loss
D 67,45,000 73,54,000 89,32,000 1,05,11,000 1,20,86,000
(AB)
E Income-tax 1407701 1663244 2208011 2745671 3272825
F Net profit/loss 53,37,299 56,90,756 67,23,989 77,65,329 88,13,175
G Repayment 19,36,000 19,36,000 19,36,000 19,36,000 19,36,000
H Retained surplus 34,01,299 37,54,756 47,87,989 58,29,329 68,77,175
4.INDUSTRIAL VISIT LETTER AND
REPORTS
 5. MARKET SURVEY
QUESTIONNAIRE & ANALYSIS
6. COPY OF MACHINERY /
CATALOGUE & PROFORMA
INVOICE / QUOTATION
7. RAW MATERIAL EVIDENCE
8.COPY OF QUALIFICATION,
EXPERIENCE CERTIFICATE,
RESIDENTIAL PROOF
9.PART I REGISTRATION UNDER
MSME