PROJECT FOR NON-WOVEN BAG MAKING MACHINE

S.No Particulars Description Qty Price

1 NW 600/700 Automatic Non-Woven 1 15, 00, 000-00

Bag Making Machine
2 Air Conditioner 1.5 Ton 2 25, 000-00

3 SERVO STABLIZER 20 KVA 1 30, 000-00

4 Air Compressor 5 H.P for 200 Ltr Tank 1 60, 000-00

5 Generator 15 KVA 1 1, 10, 000-00

6 Furniture/Fixture Only if the Owner wants 1 25, 000-00

to invest extra
7 Working Capital To be invested in raw 2, 50,000-00
material & infrastructure
Total amount to be invested 20, 00,000-00

Total amount to be invested: - Rs. Twenty Lakh Only.

 OPERATING COST OF THE MACHINE

Labour Cost: -

Particulars Machine Operator Helper Total

Number/2 Shifts 1 2

Salary 10,000/- 5,000/-

Labour Cost per

Month/2 Shifts 10,000 x 2 5,000 x 4 40,000/-
20,000/- 20,000/-

1. Total Labour Cost: - 40,000/-

2. Shed Rent: - 15 sq. Feet X Rs. 1500/Sq. Feet = 22,500/-
3. Interest: - 1% of the investment = 20,000/-
4. Electricity: - 18,000/-
5. Diesel for Generator : - 15,000/-
6. Depreciation : - 10% annual on fixed investment = (20,00,000 x .1 x 1/12) 16,500/-
7. Miscellaneous Expenses: - 15,000/-
8. Telephone: - 3,000/-
9. Transportation Expenses: 20,000/-
____________
Total 1, 70,000/-
_______________

(In Words: Rupees One lacs Seventy Thousand Only)

 TOTAL PRODUCTION AND PROFITABILITY

Production: -

1. Production Per Minute 50-90 Pcs

2. Total Production Of The Machine Per Shift : - 70 X 60 X 10 = 42000 Pcs
3. Total Production Of The Machine Per Day : - 42000 X 2 = 84000 Pcs
4. Total Production Of The Machine Per Month : - 84000 X 28 = 23,52,000 Pcs
5. Quantity Of Bags In 1 Kg = 70 Pcs (Approx)
6. Total Production Of Month : - 23,52,000 70 = 33,600 Kgs
7. Cost Of Fabric : - Rs 110/- Per Kg
8. Cost Of Bags : - Rs 130/- Per Kg
9. Total Work Of The Month : - 130-110= 20 x 33,600= 6,72,000/-
10. Less Total Expense per Month: - 6, 72,000 1, 70,000 = 5, 02,000/-
11. Total Minimum Profit per Month = Rs. 5, 02,000/-

Total Minimum Profit: - Rupees Five Lacs Two Thousand Only.

 Assumptions and Facts

1. In The Projection here We Have taken The Maximum Expenses And Minimum Profit That
Owner Can Likely Get In The Toughest Conditions and Circumstances.

2. The Profit Will Increase Remarkably If The Owner Runs More Than One Machine, As Fixed
Costs Gets Divided And Viable Costs Have More Weight-Age.

3. The Projections Would Be True Only If One Is Able To Run The Machine Continuously.

4. The Rate Of Fabric And Bags Are The Standard Rates Prevailing In The Market Of Delhi At
Present. These are However subject To Change Due To Fluctuations in the Market
Conditions and prevailing circumstances.

5. A Person Who Has Brought A New Machine Would Initially Find It Difficult To Run The
Machine Unless And Until His Business Gets Stable And Settled.

6. This Could Affect The Profitability. On The Whole as Most of His Expense are Fix except
Electricity & Transportation etc.