UNIQUE FLUID CONTROLS

I. PRODUCT AND ITS USES

This project profile envisages the use of drinking Tea and Cool Drinks. The paper cup finds
extensive use in railways, Hotels, household appliances, domestic applications. The product
ranges from 150 ml to 300 ml, this manufacturing activity may well be set-up as small-scale units.
As there is a good production of instead of plastic cups, weight less as well as easy to carry
railway Tea vendors, no environment pollution, increase the demand of paper cups, user
customer are to be encouraged in the modern days.

MARKET:
Because the paper cup industry is in a boom, the requirement of drinking items like Tea, coffee,
Cool Drinks for railways, Hotels, household appliances, domestic applications as well as for
replacement of plastic cups, Glass items. There is a tremendous requirement of day-to-day life.

III. PRODUCTION TARGETS (Per Annum)

Quantity – 56,43,000 Nos
Value – Rs. 29,18,000

IV. BASIS & PRESUMPTIONS

1. Single shift of 8 hours a day, 25 days a month and 300 days in an year is presumed.
Efficient machines and workers are also presumed.

2. Minimum 6 month period is considered for achieving full capacity utilization

3. Labour rates are as per the prevailing rates.

4. An average interest rate of 15% is considered.

5. The estimates are drawn for a production capacity generally considered techno-
economically viable for model type of manufacturing activity.

6. The information supplied is based on a standard type of manufacturing activity viable

for model type of manufacturing activity.

7. The information supplied is based on a standard type of manufacturing activity utilising

conventional techniques of production at optimum level of performance.

8. Costs in respect of machinery and equipment, raw materials and the selling prices of the
finished products etc. are generally prevailing at the time of preparation of the project profiles
and may vary depending upon various factors.

9. Whereas some names of manufacturers, suppliers of machinery and equipment, raw materials
etc. are indicates at the end of the profile, those are by no means exclusive or exhaustive.

V. IMPLEMENTATION SCHEDULE
Normally six months are required for the complete implementation of the project, including
machinery erection, raw materials procurement etc.,
VI. PRODUCTION DETAILS AND PROCESS OF MANUFACTURE
The process of manufacture consists of the following operations.

The process of manufacturing Poly coated paper purchased from market then cut in the required
sizes, fabricate outer shell then put in the bottom mould pressed and pasting and keep it in the
final paper cup mould. After making the cup checked random pieces for customer requirement.
Then packing by plastic cover in 100 paper cups in a set.

VII. LAND & BUILDING

Land 250 sq.m. }
} Rented Rs. 5,000 p.m.
Building 150 ” }

VIII. MACHINERY & EQIUPMENT

Sl.No. Description No. Rs.
1 Full Automatic Operation of 1 8,50,000
Paper cup Machine and other
assembly
2 Dyes and Moulds L.S. 50,000
3 Office equipments and - 50,000
furniture
4 Erection and electrification - 10,000
10% of the cost of machinery
Total 9,60,000
Pre – operative expenses 10,000
Total 9,70,000
IX. STAFF AND LABOUR (Per Month)
Sl.No. Description Nos. Salary (Rs.)
1 Manager 1 5,000
2 Production Supervisor 1 3,000
3 Accountant-cum-storekeeper 1 2,500
4 Watchman-cum-peon 1 1,500
5 Skilled Workers 2 5,000
6 Unskilled Workers 6 10,800
Total 27,800
Perquisites 15% 4,170
Total 31,970
Say 32,000
X. RAW MATERIALS (Per Month)
1 Special type of paper 1,20,000
(Poly coated paper) 2 Tones
@ Rs.6, 000/-
2 Printing chemicals and Dyes L.S. 5,000
3 Packing Material L.S. 5,000
Total 1,30,000
XI. UTILITIES (Per Month)
1 Power 3000 units @ Rs.3.80/- 11,400
2 Water 300
Total 11,700
XII. OTHER EXPENSES (Per Month)
1 Postage and Stationer 500
2 Telephone 500
3 Consumable Stores 1,500
4 Repair and Maintenance 500
5 Transport Charges 1,000
6 Insurance 500
7 Misc. Expence 500
Total 5,000
XIII. WORKING CAPITAL FOR THREE MONTHS
1 Salary & Wages 32,100 x 3 96,000
2 Raw Materials 1,30,000 x 3 3,90,000
3 Utilities 11,700 x 3 35,100
4 Other expenses 5,000 x 3 15,000
Total 1,78,700 5,36,100
XIV. TOTAL CAPITAL INVESTMENT
1 Fixed capital 9,60,000
2 Working Capital 5,36,100
Total 14,96,100

MACHINERY UTILIZATION
The whole operation of Tea cup and Cool Drink Cups making process is involved
simultaneously. So the machine utilization has been taken 75% per day on single shift.
XV. COST OF PRODUCTION (Per Annum)
1 Total Recurring Expenditure 21,44,400
2 Depreciation on machinery @ 10%on 85,000
8,50,000
3 Depreciation on Moulds/Dies @ 25% on 12,500
65,000
4 Depreciation on Office Equipment @ 20% 10,000
on 50,000
5 Interest on total capital @ 15% on14, 96, 2,24,400
100
Total 24,76,300

XVI. TOTAL SALES (Per Annum)

Annual production of paper cups 150 ml (Tea cup)
300 ml (cool Drink cup) Saleable materials 59,40,000 Nos After
allowing 5% rejection 2,97,000 Nos
56,43,000 Nos
XVII. PROFITABILITY (Per Annum)
Profit 27,00,000 – 24,64,350
= 2,35,650

= 2,35,650 x 100 / 27,00,000

= 8.92%

= 2,35,650 x 100 / 8,18,900

= 28.78%

XVII. FIXED COST

Depreciation of Machinery 28,500/-
Interest on total investment 98,250/-
Rent 48,000/-
40% on salary and wages 1,78,100/-
40% of Other expenditure 36,000/-
3,88,850/-

= 3,88,850 x 100 / 3,88,850+ 2,35,650

3,88,850 x 100 / 6,24,500
= 57.37%

PREPARED BY RITE MACHINERIES……

FEEL FREE FOR CLARIFICATIONS
Mobile:8531933306.
Mail:karthick@ritemachineries.com

UNIQUE FLUID CONTROLS

Address: No.74, Adhi Dhiravidar Street, Chinnamettupalayam, Saravanampatti, Coimbatore,
Tamilnadu, PIN-641041
Phone: +91 8531933306 Email: karthick@ritemachineries.com, Web: www.ritemachineries.com
GSTIN: 33AAFFU0720J1ZG