Madhu Udyog

Company Background
• Madhu Udyog was started in 1988 and is a sole proprietorship
of Mr. Ramesh Passi.
• Initially, the company was an automobile components supplier
and were the top supplier in Karol Bagh.
• The company shifted as OEM supplier in 1990.
• In 1999, the company diverted to highly critical plastic
components as OEM supplier to manufactures and still
continues in the same business.
• From resource base of 6 and 4 machines , Madhu Udyog, have
expanded to 1 Crore Annual revenue . With 11 resources
working for it and more than 10 products/molds under its
kitty.
• The company is currently serving around 4 clients.
Company Details
Name of Organization: Madhu Udyog
Madhu Udyog, Plot 62, Block H, sector 1, Industrial area,
Address: Bawana -39

Contact Person: Ramesh Passi

Contact No.: 9811022504

Year of Establishment: 1988

No. of Employees: 11

Sales Turnover: 1 Cr/Annum

Total Plant Area: 150mtrs

Organization Chart

Founder

Supervisor

Skilled Skilled Skilled Skilled Semi - Semi -

Unskilled
Worker Worker Worker Worker Skilled Skilled
Product Flow Chart

Raw Final
Mixer Pre-Heat Moldings
Material Product

Single Machine
Product Flow Chart - description
• Raw material of Plastics of various grade like LLDPE, LDPE,
HDPE, HIBS and ABSPP is procured from sources.
• Material and colours are selected on the basis of final product
that have been ordered.
• Raw material and colour are mixed in the Mixer machine.
• Mixed material is then put into Blow moulding machine.
• The product comes out and it is cleaned for rough edges,
irregularities and extra recyclable cast.
• The finished good thus is packed and stored in the store room.
• Products are delivered periodically or as per the demand.
• Recyclable materials are put through recycling machine and
mixed to raw material going to hopper.
Data Collection and Cost sheet obtained
• Data Collection Method :

• The company details and data collection have been done by

direct and telephonic interaction between the Owner and
WMP Participants.

• There was no Cost accounting method followed by the Firm,

but the owners have good experience to run the business.

• The owner gave some details of costs verbally, and WMP

Participants witnessed the entire production process.

• The cost of each heads manufacturing have been identified

and is presented below :
Preliminary cost heads
• Raw material cost
• Raw material carrying cost
• Raw material handling cost

• Direct labour cost =

• Unskilled labour
• Skilled labour
• Salaries of owner and higher management

• Machinary cost

• Overheads =
• Utility(Electricity, water etc)
• Property tax
• Accommodation of labours

• Non-manufacturing plant : Chiller Plant

• Production per week = 2.1 Lakhs

• Activity Based costing will be applied to allocate the overhead cost to product cost.
Preliminary cost heads
• Raw material cost
• Raw material carrying cost
• Raw material handling cost

• Direct labour cost =

• Unskilled labour
• Skilled labour
• Salaries of owner and higher management

• Machinary cost

• Overheads =
• Utility(Electricity, water etc)
• Property tax
• Accommodation of labours

• Non-manufacturing plant : Chiller Plant

• Production per week = 1.92 Lakhs

• Break even Unit cost is 7.50

• Activity Based costing will be applied to allocate the overhead cost to product cost.
Annexure

Raw material Work in progress – after

moulding
Finishedgoods are put into bags
Annexure

Work in progress – after moulding

– segregating recyclable plastic Recyclable
plastics
Annexure

Preheating before
loading into blow
mould machine Variety of moulds
Thank You