PPR (PRELIMINARY PROJECT REPORT)

1.1 General:

Name of entrepreneur: Rajkumar D. Patel (09078)

Date of birth: 13th October 1988 Age: 22 years

Project: Ceramic glazed tiled industry

Location: Morvi (Rajkot)

Type of organization: Proprietary/Partnership : Partnership

Name of firm: MD ceramic Ltd.

Address: Morvi (Rajkot)

1.2 Educational qualification:

Qualification Institute Major Year of passing

subject
HSC or below HSC Science V C Tech high school --- 2005
Graduation B. Pharm H N Shukla pharmacy --- 2009
college
Master PGDM TIMS --- Continue
degree

1.3 Special training:

Training Institute Duration Achievement

in

1.4 Work experience: (Past and present)

Organization Position Nature of work Duration

2.0 Details of project (Manufacturing/Service)

2.1 Machinery/ Equipment:

Sr. Description Qty Price Total Remarks

No. required value
1 Square line 1 1717000 1717000 New imported
2 Hydraulik press 1 8540000 8540000 Old imported
3 Kilan 1 11900000 11900000 Old imported
 4 Dryer 1 3000000 3000000 Indigenous
5 Glaze line 2 3200000 6400000 Indigenous
6 Screen printing 9 136500 1228500 Indigenous
7 Ball mill 5 186900 934500 Indigenous
8 Entry Exit table 3 211733 635250 Indigenous
9 Cooling tower 2 48300 96600 Indigenous
10 Heat exchanger 1 287400 287400 Indigenous
11 Screen vibrator 6 39480 236900 Indigenous
12 Others --- 8500000 Indigenous
13 Installation charge --- 2000000 2000000 Indigenous
45476150

2.2 Production program: {Total capacity= 27000 MT}

Sr.
Year Capacity utilization Used capacity
No.
1 1st 60% 16200
2 2nd 65% 17550
3 3rd 70% 18900
4 4th 75% 20250
5 5th 80% 21600

2.3 Raw materials:

Sr. Yea
Used capacity Price (Per MT) Cost of material (Rs)
No. r
1 1st 16200 60102000
2 2nd 17550 65110500
3 3rd 18900 3710 Rs. 70119000
4 4th 20250 75127500
5 5th 21600 80136000

2.4 Utilities:

Yea Annual Total annual

Particulars Remarks
r requirement expense
Electricity 165 KVA 5400000 275 KVA = 9000000
st
1 Fuel 1620000 29160000 18 Rs/Kg
Other
Electricity 178.75 KVA 5850000 275 KVA = 9000000
nd
2 Fuel 1755000 31590000 18 Rs/Kg
Other

2.5 Man power:

Sr. Annual salary

Particulars No. Monthly salary Total
No.
1 Skilled 18 6000 72000 1296000
2 Semi 48 3500 42000 2016000
 -skilled
3 Un-skilled 12 2750 33000 396000
4 Office staff 03 5000 60000 180000
Total 3888000
Monthly wage 324000

2.0 Market study: Include details in annexure:

The production capacity of industry reached at the utilization of 90 to 98%. Now
construction in urban and semi urban area has boosted the demand of ceramic glazed tiles. The
recent budget has shown tremendous application and concentration toward housing sector, which
will further add to demand of ceramic glazed tiles. As per the government survey there are huge
deficit in residential houses in urban and semi urban area. It is expected that deficit will further
widen by tea2009.

Hence there is a wide range of demand and supply of ceramic glazed tiles, the industries
operating in this sector at the rate of 90 to 98% capacity utilization, therefore industries can not
avail more by their good efficiency and now the only way open for that is to go for further new
capacity, hence unit has good scope and prospectus.

4.0 Cost of project:

4.1 Fixed capital:

Sr. Item Value (Rs)

No.
1 Land/ Building 25000000
2 Machinery/ Equipment 46000000
3 Furniture/ Fixture 4000000
Total 75000000

4.2 Working capital:

Sr. Item Duration Quantity Value

No.
1 Raw material stock 1 month 1500 kg 5565000
2 Semi-finished stock 0
3 Finished goods stock 10 days 445 kg 3382000
1 month production expense
Electricity 1 month 450000
4
Fuel 1 month 2430000
Wage 1 month 324000
Total 12151000

4.3 Total cost of project:

Sr. Particulars Value (Rs)

No.
1 Fixed capital (4.1) 75000000
2 Working capital 12200000
(4.2)
 3 Preliminary expense 0
Total 87200000

4.4 Means of finance:

Sr. Particulars Value (Rs) Remarks

No.
1 Term loan 26500000
2 Working capital loan 12200000
3 Own investment 35000000
4 Subsidy 0
5 Any other 0
Total 73700000

4.5 Project profitability analysis:

Sr. Description Value (Rs) Total amount

No.
1 Sales revenue 16200 X 7600 123120000
2 Mfg. Expense 68902200
3 Selling & Distribution expense 900000
4 Administration expenses 600000
5 Intrest 12% of (1220000 + 4680000
26500000)
6 Depreciation (SLM of 10% of ) 4547615
7 Gross profit 43490185
8 Income tax 35% of GP 15221565
Net profit 28268620

5.0 SUPPLEMENTARY DETAILS

5.1 Do you own house / property: Property

5.2 Own insurance policy: NO

5.3 Any interest in other firms: Matrix ceramic Ltd.

5.4 You belong to SC /ST/ General: General

5.5 Present monthly income (Rs): ---

6.0 References:

Sr. Name Address Occupation

No.
1 Dr. D. A. Rajkot Doctor
Bhoraniya
2 Mr. Bharat Patel Morvi Business man

Date: 3rd October 2010

Place: Adipur
Signature