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1.1 PROJECT PROFILE AT A GLANCE

1. Name of the Project: GHANSHYAM PLYWOOD INDUSTRY

2. Location within state/Country: 91, DEDIYASAN G.I.D.C.

3. Nearest Road, Rail : MEHSANA

4. Estimated Capital Cost of the Project: 1,62,86,000

5. Capital Equipment: 1) Tree cutter

2) Steam Boiler.
3) Round cutter and horizontal cutter.
4) Hydraulic Hot press.
5) cutter for perfect sizing

6. Raw Material: Soft wood and Hard wood

7. Environment Impact: The project is an Environment Friendly Activity. There will be

no Ecological imbalance and Pollution hazards to the Localities because of the Project. The project may
help in checking the destruction of timber forest.

8. Time-frame for selection & completion

Of selection of Project: Within a period of 12 months.

9. Government Incentive package applicable

To the Project: Capital Investment, Power, Interest, Transport, subsidies, etc.

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1.2 INTRODUCTION

• Dediyansn is rural area attached to the Mehsana city. In Dediyasan G.I.D.C. established which
declared as a industrial zone. The Hardwood and Softwood is the raw material required for this
project. The Hardwood i.e. raw material of trees will be bought from nearest farm. Softwood will be
collected from both nearest farm and “Gandhidham”. The softwood is Rice husk, Cotton waste and
Soya bin waste. The raw material is easily available in this region and hence, the project location is
selected here. Dediyasan is connected to Ahmadabad and other metro city with Roads and Railways.

• The making of Plywood is the most universal spread manufacturing process all over. The
process includes making log, cutting, veneer preparation and plywood sheets. The high
quality adhesive is being used.

• This industry has carved for itself an important place among the Plywood’s of the State. It
would provide fulltime employment to the labors and skilled workers. This will help the
rural people of this region as they are getting paid for the agriculture waste instead of
burning it and development of both agriculture and industry as well

1.3 VISION OF THE PROJECT

• “Customer Satisfaction’- by providing high quality in a professional and reliable manner

through merit shop philosophy, allowing it to be competitive, adaptable and creative”

1.4 MISSION OF THE PROJECT

• To provide jobs to rural skillful employees.

• To develop the economy of the region.
• To popular eco friendly products.
• To obtain maximum growth with minimum investment.
• To use the modern technology to the plywood industries.

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1.5 SELECTION OF THE PROJECTS

• The main reasons that encourage me to select this project are given as follows as
• The main raw materials for the industry, i.e. softwood and hardwood of various types are
abundantly available throughout the State.
• Government policies beneficial to this project.
• I am interested in the plywood manufacturing industry.
• The local market not any plywood industry.
• Today plywood demand increases day by day.
 The industry has considerable scope for development and various new products suited to
modern tastes can be manufactured out of Trees.

Market Potential and competition

• Plywood products have always its demand in market. The product are eco-friendly and cheap as compared

to other plastic product. The different Plywood products have different categories of customers. The

Plywood product like furniture generally popular among the middle class people of regions.

My potential customers as follow as

 Furniture manufacturing company
 Retailer of the Plywood Sheets
 Government institution like Railways, State Transport

Competitor
 Other SSI unit of Plywood in local market
 Major Player of the industries.

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1.6 MARKETING CHANNELS
• The marketing channels plays important role in the distribution of the products to reach
the potential customers. The selection of the marketing channels is also important .so
choose my marketing channels as follows as

• Wholesaler & Distributor:

These People working as a company partner because they are giving place our product.

• Industrial Merchants:
The registration with the trading companies like India mart will also be the marketing channel

1.7 LEGAL FORMALITIES

• for the starting a SSI unit , every unit has some legal formalities to complete for starting
anew business or to dissolve any industries. Here depicted some legal aspects which are
necessary to be completed by entrepreneurs.

 No objection letters DIC.

 Approval letter from DIC.

 Power sanction assurance letter from G.E.B.

 Certification of water supply.

 Application for Telephone.

 S.S.I Unit Registration.

 Octroi Exemption letter from Municipal council.

 Registration for sales Tax.

 Registration of central Sales Tax.

 Application for loan to Urban Bank, Mehsana

 Certificate from industrial pollution Office.

 Document of Each & Every Partners.

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1.7 Plant Location: The plant located at following address:
 Entry Gat
Corporate
Office

Inventories Work shop

Store

Toilet
Scraps
Room

Canteen

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The factor influenced to choose the plant layout are as follow as:
1. Availability of Raw materials:
2. Availability of Skillful labors:
3. Good Transportation facilities:
4. Availability of the Water and Power supply:

1.8 Raw Materials

• The outer layers of plywood are known respectively as the face and the back. The face is the surface

that is to be used or seen, while the back remains unused or hidden. The center layer is known as the

core. In plywood’s with five or more plies, the inter-mediate layers are known as the cross bands.

• Plywood may be made from hardwoods, softwoods, or a combination of the two. Some
common hardwoods include ash, maple, mahogany, oak, and teak. The most common
softwood used to make plywood in the United States is Douglas fir, although several
varieties of pine, cedar, spruce, and redwood are also used.

• Composite plywood has a core made of particleboard or solid lumber pieces joined edge
to edge. It is finished with a plywood veneer face and back. Composite plywood is used
where very thick sheets are needed.

• The type of adhesive used to bond the layers of wood together depends on the specific application for the

finished plywood. Softwood plywood sheets designed for installation on the exterior of a structure usually

use a phenol-formaldehyde resin as an adhesive because of its excellent strength and resistance to moisture.

Softwood plywood sheets designed for installation on the interior of a structure may use a blood protein or

a soybean protein adhesive, although most softwood interior sheets are now made with the same phenol-

formaldehyde resin used for exterior sheets. Hardwood plywood used for interior applications and in the

construction of furniture usually is made with a urea-formaldehyde resin.

• Some applications require plywood sheets that have a thin layer of plastic, metal, or resin-impregnated

paper or fabric bonded to either the face or back (or both) to give the outer surface additional resistance to

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 moisture and abrasion or to improve its paint-holding properties. Such plywood is called overlaid
plywood and is commonly used in the construction, transportation, and agricultural industries.

• Other plywood sheets may be coated with a liquid stain to give the surfaces a finished appearance, or may

be treated with various chemicals to improve the plywood's flame resistance or resistance to decay.

Plywood Classification and Grading

There are two broad classes of plywood, each with its own grading system.

• One class is known as construction and industrial. Plywoods in this class are used primarily for their
strength and are rated by their exposure capability and the grade of veneer used on the face and back.
Exposure capability may be interior or exterior, depending on the type of glue. Veneer grades may be
N, A, B, C, or D. N grade has very few surface defects, while D grade may have numerous knots and
splits. For example, plywood used for subflooring in a house is rated "Interior C-D". This means it has
a C face with a D back, and the glue is suitable for use in protected locations. The inner plies of all
construction and industrial plywood are made from grade C or D veneer, no matter what the rating.

• The other class of plywood is known as hardwood and decorative. Plywoods in this class
are used primarily for their appearance and are graded in descending order of resistance
to moisture as Technical (Exterior), Type I (Exterior), Type II (Interior), and Type
III(Interior). Their face veneers are virtually free of defects.

Sizes

• Plywood sheets range in thickness from. 06 in (1.6 mm) to 3.0 in (76 mm). The most common
thicknesses are in the 0.25 in (6.4 mm) to 0.75 in (19.0 mm) range. Although the core, the cross
bands, and the face and back of a sheet of plywood may be made of different thickness veneers,
the thickness of each must balance around the center. For example, the face and back must be of
equal thickness. Likewise the top and bottom cross bands must be equal.
• The most common size for plywood sheets used in building construction is 4 ft (1.2 m)wide by 8 ft (2.4 m)

long. Other common widths are 3 ft (0.9 m) and 5 ft (1.5 m).Lengths vary from 8 ft (2.4 m) to 12 ft (3.6 m)

in 1 ft (0.3 m) increments. Special applications like boat building may require larger sheets.

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1.9 FUTURE PLANNING FOR THE EXPANSION:-

• Even though plywood makes fairly efficient use of trees—essentially taking them apartand putting

them back together in a stronger, more usable configuration—there is still considerable waste inherent

in the manufacturing process. In most cases, only about 50-75% of the usable volume of wood in a

tree is converted into plywood. To improve this figure, several new products are under development.

• One new product is called oriented strand board, which is made by shredding the entire log
into strands, rather than peeling a veneer from the log and discarding the core. The strands are
mixed with an adhesive and compressed into layers with the grain running in one direction.
These compressed layers are then oriented at right angles to each other, like plywood, and are
bonded together. Oriented strand board is as strong as plywood and costs slightly less.

1.10 LIST OF THE MACHINE TO BE USED IN THE MANUFACTURING PROCESS

AND THEIR COST OF PURCHASE

General Plywood Processing Machine

1. Hydraulic Hot Press Machine:
‘BS’ make, Hydraulically operated steam/oil heated multi daylight Hot press in unclosing
frame. The main body is fabricated from solid plate and Hot plates are also fabricated
from solid plate as well as complete with Automatic power pack, steam connection pipes
and other necessary parts and components. Rs. 55,50,000
2. Steam Boiler:

Rs. 15, 00,000

3. Chimney(30m) with
Ladder: Rs. 2, 50,000
4. Heat Recovery unit (Air-Pre
Heater) Rs. 10, 00,000
5. Glue Mixer:

Rs. 3, 00,000

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1.11 SOURCE OF FINANCE:

• Supply of finance is very important factor in the establishment of an enterprise is old. Finance
is the life line of the Business. Finance deal with the arrangement of the sufficient capital for
the smooth run of the Organization. Following are the certain sources of the finance scheme:
B) Own Capital:
According to the rules setup by the various financial institution 25% to 35% of the capital should be the
own investment of the entrepreneur. 33.33% of the project cost will be financed by the promoter himself.
Rs. 50,00,000 from partner 1

Rs. 12,86,000 from partner 2

C) Term Loan from the Commercial Bank:

Urban co. Bank, Mehsana, Gujarat lend Rs 1,00, 00,000 at the rate of interest 13.75%

Cost Of the Project:

Sr No. Particulars Amount

1 Land 15, 00,000
2 Site Development 45,000
3 Building 20,00,000
4 Plant and Machinery 85,00,000
5 Furniture and Misc. 2,00,000
6 Preliminary and preoperative exp. 90,000
7 Working capital (3 months) 39,51,000
Total 16286000

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Means Of Finance:
Sr no. Rate of Interest Particulars Amount
1 NIL Own Deposit 50,00,000
2 13.50% Bank Loan 1,00,00,000
3 NIL Other Liabities 22,56,000
Total

Total Fixed Capital: ##change head :Total Assets

Sr no. Particulars Amount
1 Land 15,00,000
2 Site Development 45,000
3 Building 20,00,000
4 Plant and Machinery 85,00,000
5 Furniture and Misc. 2,00,000
6 Preliminary and Preoperative exp.###consider seperate 90,000
Total ##would be 12245000 1,23,35,000

1. Land
Sr no. Particular Price/acre Amount
1 Land Area (2 acre) 7,50,000 15,00,000

2. Site Development
Sr no. Particulars Cost of item Amount
1 Filling of the Land 13,000 13,000
2 Fencing 12,000 12,000
3 Gardening 10,000 10,000
4 Gates 10,000 10,000
Total 45,000

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3. Building:
Sr no. Particulars Cost of the item Amount
1 Corporate Office 3,20,000 3,20,000
2 Show Room 3,50,000 3,50,000
3 Work Shop 7,80,000 7,80,000
4 Toilet 1,50,000 1.50,000
5 Store room 4,00,000 4,00,000
Total 20,00,000

4. Plant and Machinery:

Sr no. Particular Quantity Amount
1 Hydraulic Hot press 01 56,50,000
2 Steam Boiler 01 15,00,000
3 Chimney with Ladder 01 4,00,000
4 Air-pre Heater 01 2,50,000
5 Dust controller 01 2,00,000
6 Pressure reducing 01 2,00,000
station
7 Glue Machine 01 3,00,000
Total 85,00,000

5. Preliminary and Preoperative Expenses:

Sr no. Particular Amount
1 Deposit for Power, Water, Telephone 25,000
2 Loan Application process fees 12,000
3 Deposit for internet 3,000
4 Legal Stamp Duty and Registration 30,000
5 Travelling 10,000
6 Consultancy 10,000
Total 90,000

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6. Furniture and Miscellaneous Expenses:
Sr no. Particulars Quantity Amount
1 Furniture

Office chairs 8 25,000

Almirah 8 40,000
Racks 20 50,000
Tables 2 8,000
Computer and Accessories 1 30,000
Fans 8 12,000
Sofa set 1 15,000
2 Work shed ----------- 20,000
Total 2,00,000

7. Depreciation (per annum):

Sr no. Types of Assets Cost of Assets Amount
1 Plant and Machinery 85,00,000 8,50,000
2 Furniture 2,00,000 40,000
3 Building 20,00,000 1,00,000
Total 9,90,000

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Working Capital Requirement:

Sr no. Particular 1 Month 3 Month

1 Raw Material 11,40,000 34,20,000
2 Salary and Wages 1,24,000 3,72,000
3 Other Manufacturing 10,000 30,000
Expenses
4 Power and Fuel 25,000 75,000
5 Selling and Office 18,000 54,000
expenses
Total 39,51,000

1. Raw Material:
Sr no. Particulars No. of Price/tons Cost/month Cost /year
Tons/month (Rs)
1 Softwood 150 6000 9,00,000 1,08,00,000
2 Hardwood 50 4000 2,00,000 24,00,000
3 Adhesive 5 8000 40,000 4,80,000
Total 11,40,000 13680000

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2. Salary and Wages:

Sr no. Name of the No. of Salary /head Salary /month Salary /year
Post member
1 Manager 1 15,000 15,000 1,80,000
2 Accountant 1 8,000 8,000 96,000
3 Office staff 2 5,000 10,000 1,20,000
4 Chemist 1 4,500 4,500 54,000
5 Supervisor 1 5,000 5,000 60,000
6 Machine 3 4,000 12,000 72,000
Operator
7 Skilled labor 7 3500 24,500 2,94,000
8 Unskilled labor 9 3000 27,000 3,24,000
9 Women 4 2500 10,000 1,20,000
mazdoor
10 Mechanic cum 2 4000 8,000 96,000
Electrician
total 31 1,24,000 14,88,000

2. Power and Fules:

Sr no. Particulars Per month Per Annum
1 Fuel 8,000 96,000
2 Power 17,000 2,04,000
Total 25,000 3,00,000

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 3. Other Manufacturing Expenses:
Sr no. Particulars Per month Per annum
1 Paint 3,000 36,000
2 Packaging Material 3,000 36,000
3 Repairing of the 4,000 48,000
Machine ##contradict
with cost of production
Total 10,000 1,20,000

4. Office Selling, Distribution Expenses:

Sr no. Particulars Per month Per annum
1 Postage and Stationeries 2,000 24,000
2 Telephone and internet 2,000 24,000
bills
3 Transportation 14,000 1,68,000
Total 18,000 2,16,000

5. Trade credit
Year 1 is a :- 1495905

Cost of the Production:

Sr no. Particulars Per month Per annum
1 Raw Material 11,40,000 1,36,80,000
2 Salary and Wages 1,24,000 14,88,000
3 Other Manufacturing 10,000 1,20,000
Expenses
4 Consumables 20,000 2,40,000
5 Repairing of machines 15,000 1,80,000
Total 13,19,000 1,58,28,000

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Estimated Sale:

Sr. no Items No.of item Price / item Monthly sales Yearly sales
sold/month
1 6 mm plywood sheets
3x6 40 570 22800 273600
4x6 54 720 38880 466560
3x8 90 720 64800 777600
4x8 90 960 86400 1036800
Total 274 212880 2554560
2 9 mm plywood sheets
3x6 60 756 45360 544320
4x6 74 1008 74592 895104
3x8 115 1008 115920 1391040
4x8 114 1344 153216 1838592
Total 363 389088 4669056
3 12 mm plywood sheets
3x6 84 972 81648 979776
4x6 98 1296 127008 1524096
3x8 150 1296 194400 2332800
4x8 150 1728 259200 3110400
Total 482 662256 7947072
4 19 mm plywood sheets
3x6 45 1458 65610 787320
4x6 65 1944 126360 1516320
3x8 75 1944 145800 1749600
4x8 90 2592 2,33,280 2799360
Total 275 571050 6852600
Total 1835274 2,20,23,288

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Profitability:

Sr no. Particulars Per month Per annum

1 Sales 1835274 22023288
2 Less: Cost of Production 13,19,000 15828000
3 Gross Profit 5162274 5271288
4 Less: Office, selling, 18,000 216000
distribution exp.
5 Less: Interest on loan 1,12,500 1350000
13.50% bank
Net Profit 385774 4629288

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1.12 PROFIT & LOSS ACCOUNT

1 2 3 4 5
Instlled Capicity ( Unit / Year) 20000 22000 26000 26000 26000
Production ( Unit / Year) 17000 18700 20570 20570 20570
Capicity Utilization 85% 85% 79% 79% 79%

A Sales Realisation 22023288 24,225,616 26,648,177 26,648,177 26,648,177

B Cost of Production
Raw Material 1,36,80,000 15,048,000 16,552,800 16,552,800 16,552,800
Power 300,000 300,000 300,000 300,000 300,000
Wages and Salaries
14,88,000 1,488,000 1,488,000 1,488,000 1,488,000
Factory Overhead
120,000 120,000 120,000 120,000 120,000
C Administration and Selling 2,40,000 2,40,000 2,40,000 2,40,000 2,40,000
Exp.

D Gross Profit Before Interest

6,195,288 7,029,616 7,947,377 7,983,377 7,983,377
E Total Financial Expences
Interest on Term Loan
1,350,000 1,215,500 1,080,000 9,45,000 810,000
F Operating Profit
4845288 5,814,116 6,867,377 7,038,377 7,173,377
G Preliminary Exp.

H Profit and Loss Before Tax

4,845288 5,814,116 6,867,377 7,038,377 7,173,377
I Provision for Tax
7,26,793 8,72,117 1,030,106 1,055,756 1,076,006

Net Profit
4,118495 4,941,999 5,837,271 5,982,621 6,097,370

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1.13 BALANCE SHEET

At the End 1 2 3 4 5
of
Constructi
on Period
Liabilities
Owner's Fund
7,256,000 7,256,000 7,256,000 7,256,000 7,256,000 7,256,000
Reserve and surplus
4,118,495 4,941,999 5,837,271 5,982,621 6,097,370
Secured Loan
Term Laon
10,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000

Current Liabilities and

Provision
Trade Credit
1,495,905 3,059,108 4,666,930 5,529,430 6,391,930

Total
17,256,000 22,870,400 24,257,107 25,760,201 25,768,051 25,745,300

Assets

Fixed Assets
12,245,000 11,255,000 11,255,000 11,255,000 11,255,000 11,255,000
Current Aseets , Loans And
Advances

Cash and Bank Balance 4,921,000

Raw Material
11,525,400 12,912,107 14,415,201 14,423,051 14,400,300

Miscellaneous Expandature
and losses
preliminary Exp.
90,000 90,000 90,000 90,000 90,000 90,000

Total
17,256,000 22,870,400 24,257,107 25,760,201 25,768,051 25,745,300

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