PROJECT AT A GLANCE
1 Name of the Mfg. Enterprise MEGHANA ROOFING INDUSTRY
2 Type of Industry
3 NIC Code
4 ASICC Code (Activity and
Commodity Classification for
MSME Sector)
5 Sector
6 Constitution
7 Line of Activity
8 Product Application
6 Installed Capacity
7 Proposed Address of the unit
Name of the Propritor
Communication Address
Technical Qualification
Social Status
Mobile Number
Email ID
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Manufacturing of Basic Metals
24105 (Manufacturing of Hot rolled
and Cold rolled products of steel
71241 (Cold rolled
Sheets/Plates/Strips)
Small
Propritary
Manufacture of Colour coated
galvanized Steel Sheets,
Alluminum-zinc alloy colour coated
steel sheets, Roofing Tiles
Pre-painted Sheets: Roofing, Wall
cladding, Facading
Metal Roofing Tiles: Tile Roofing of
Buildings
768 MT Per Annum
S.No.25/12, Within Madapam
Revenue Village, Narasannapeata
Mandal,
Srikakulam Dist.
ENTREPRENEUR’S DETAILS
Mr.Ramavath Ravi
Visakhapatnam
Btech
SC
Meghanapowersystems.solutions@gmail.com
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 INTRODUCTION

INTRODUCTION

Meghana Roofing Industries is proposing to manufacture Cold rolled

sheets which are used for Roofing and Wall cladding. The firm has been
registered with Dept. of Industries, Govt. of Andhrapradesh. The main
activity of the manufacturing enterprise is to roll form preprinted
galvanized & Galvalume coils into different profiled roofing and cladding
sheets with the help of De-coiler, Roll forming machine. These panels
can be easily installed, high in strength and more economic. These
corrugated sheets are of direct overlapped model, screw hidden model,

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 self locked models. Other products like floor decking steel sheets, C & Z
purlins, Skylights, Turbo ventilators etc. would be supplied by the Firm.

Floor Decking Steel Sheet , C & Z Purlins, Skylights and Turbo

ventilators will be purchased from third party and supplied the same to
our clients. Decking panel is usually used as the floor of high buildings.
It can save construction steel and can also save the weight.

C & Z Purlins are roll formed by roll forming machine with hot roll steel
and galvanized steel at thickness 1.5mm to 3.0mm. It is featured with
better anti bending and straightness, these products are used as the
main supporting bars on steel structure.

The firm is going to start its manufacturing facility at S.N0.12, situated

within Revenue Village, Mandal of Visakhapatnam District. For the
purpose, manufacturing facility would be constructed with a plinth area
of 6000 SFT (120’X50’) within leased plot admeasuring 40.00 Cents.

The Industry management would establish Sale/marketing points in

various potential locations in Visakhapatnam, Vizianagarm, Srikakulam
and Eastgodavari Districts.

Likewise, there is both economic and technical viability in setting up

and operating a Roofing industry. Roofing manufacturing industry is
profitable for a prospective entrepreneur. Hence, I have chosen this
activity and I assure that I can capture good market by installing
advanced machinery and supply best quality products.

Brief background of Promoter

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  Mr.Ramavath Raviis the native of Tenali Town and currently residing
at Visakhapatnam. He is Electrical Engineering graduate. He is now
in his business of electrical consultancy services in Visakhapatnam
and Vizianagaram districts.
 He wants to start a manufacturing enterprise. He has evaluated the
market for the product which is having good market potential.
 He has conducted a market survey on Prepainted Galvanized and
Galvolume Roofing sheets and found that there is wide scope for the
Roofing Sheet Industry.
 Pre-engineered and metal buildings are gaining popularity these
days and hence decided to start the industry under the name and
the style of Meghana Roofing Industries.
 The promoter worked out the project cost of Rs.268.00 Lakhs. Out
of this, Rs.148.00 Lakhs is meant for Fixed assets such as
construction of Main Shed, Auxiliary structures, procurement of
Machinery & supportive Equipments and other fixed assets.
Promoters are going to investment Rs.37.00 Lakhs for the
acquisition of fixed assets. Working capital requirement has been
assessed at Rs.120 Lakhs. Promoter’s total equity including working
capital margin is Rs.67.00 Lakhs.

BASIS & PRESUMPTIONS

 The Production Capacity is considered on two-shift basis with 8

hours a day, 25 days a month. As Cashew yield is seasonal, the unit
would operate 300 days in a year.

 The Installed capacity of Roofing and Tyle roofing sheets is 45

Tons per Day. The output of the finished products is about 98%
from the Raw materials used.

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  PPGI and PPGL Coils are used as the Raw materials for
manufacturing of Roofing sheets. Coil input width is 1220 mm,
Roofing sheet supply width is 1010 mm, Pitch is 200 mm and Crest
height is 30 mm.

 The salaries and wages for staff and labour have been taken into
consideration on the basis of prevailing market rates.

 The cost of plant and machinery, Raw materials, selling price of

finished products etc. are the prices collected at the time
preparation of project report and may vary depending upon
location, manufacturers, market and other various reasons.

 Interest on term loan has been taken at the rate of 11% on an

average. This rate may vary depending upon the policy of the
financial institutions/agencies from time to time.

LOCATION OF UNIT

I am planning to start the unit at S.No., within Revenue Village &

Panchayat of mandal of Visakhapatnam District. The proposed location
is well suited for Labour. Transport facility is also very good and the
location is connected to other areas of the district.

PROPOSED NAME OF UNIT & BRAND NAME

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 We would like to name the production unit as

MEGHANA ROOFING INDUSTRIES

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 COLOUR COATED STEEL INDUSTRY IN INDIA

 Galvanised steel products are value-added materials that are

sturdy, light weight, bright in appearance and corrosion resistant.

 Zinc or Zinc-Aluminum coating protects the steel from corrosive

attack in most atmospheres, acting as a continuous lasting shield
between the steel and atmosphere, as long as the zinc sheath
remains unbroken.

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  Galvanised steel products (GP/GC sheets) are used in the
construction sector in roofing, side claddings, agricultural sites,
railway platforms, factory sheds and in various areas of housing etc.

 With the new thrust given by the government on housing in both

urban and rural areas, the consumption of these coated sheets is
likely to grow at a much faster space in future. In the construction
sector, zinc-coated products have a useful life of 50 years.

 India has been witnessing tremendous in roofing demand owing to

rapid growth in the construction Industry.

 Growth in Construction Industry, Industrial Growth, Growing PEB

Market are some of the key drivers for Roofing Industry in India.

TECHNICAL FEASIBILTY

MANUFACTURING PROCESS

The Pre-painted Al-Zn Alloy Coated Sheet or Colour Coated galvanized

Sheet in coil form is first adjusted in Decoiler with the help of Single
Girder EOT Crane. The sheet is then set into Entry Gate rollers for pre-
stretching. The sheet is fed to Corrugated Roll Forming Machine in

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 which the sheet is formed in predetermined pattern and design by cold
forming technology with series of rollers using desired pressure. The
sheet is then cut in cutting unit. For crimping of sheet, hydrauling
crimping machine is used for the same.

Automatic Roll Forming Line consists following parts, while the coil
stock is passing through succession contoured rolls the material bends
to its desired shape, after final shape is achieved profile straighter gives
straightness to outgoing profile.
1. De Coiler ( 5 Ton)
2. Loop System
3. Entry gauge and Roll Forming machine
4. Cutting unite
5. Run out table
6. Integrated Hydraulic power Pack system
7. P L C control system

Decoiling: Decoiler is provided to load Raw material coil on its arms &
Hold the coil and also generates Drag tension in process.

Entry Gate: Loop System is incorporated in between 2 line equipments

to synchronize line speed or some time to eliminate tension, stretch, on
passing material.

Roll Forming Line: Roll Forming consists pairs of contoured roll tools.
While the coil stock is passing through succession contoured rolls the
material bends to its desired shape, after final shape is achieved profile
straighter gives straightness to outgoing profile.

Cutting System: Cutting as stop forming line Cuts length +/- 4 mm.
Press is designed to accept type die or tropping die without slug while
cutting.

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 Integrated hydraulic Power pack system: To Supply pressurized fluid to
all hydraulic actuators at desired pressure and quantity.

PLC & Control Panels: For Electrical controlling of line equipments.

PROCESS FLOW CHART

PPGI OR PPGL Coil

Adjusting in De-coiler

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 Setting into Entry Gate

Roll Forming in Corrugated

Roll Forming Machine

Measuring Sheet Length

Sheet Cutting

Quality Check

Despatch

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 COST OF PROJECT & MEANS OF FINANCE

[Rs. in Lacs]
COST OF PROJECT
S.NO. PARTICULARS TOTAL
1 Land (Own) -

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 2 Site development 3.00
3 Building (100'X60') 27.00
4 Office Room 5.00
Total [A] 35.00
5 Machinery & Equipment  
  Double Profile Corrugated Roll

  i. Forming Machine 35.00

with Decoiler and cutting
 
  attachment  
  ii Crimp Roll Forming Machine 10.25
  iii Stainless Steel Tube Mill 25.61
  with Die Sets  
 
iv. EOT Crane with Railing 17.25
  VAT @ 5% 4.41
  Transportation & Transit

    Insurance 4.41
  Installation & Commissioning 2.64
 
Total 99.56
  Rounded off to [B] 99.00

6 Distribution Transformer, Electricity 10.00

  connection, Electrical conduits, Fixtures  
  & Fittings, Office equipment  
7 Deep Tube Bor Well 1.00
8 Office Equipment 1.00
9 Sanitation, Drain lines, Plumbing etc. 1.00
10 Preliminary & Pre-operative expenses 1.00
   Total [C] 14.00
Working Capital [D] 120.00
TOTAL PROJECT COST (A+B+C+D) 268.00
MEANS OF FINANCE
S.NO. PARTICULARS TOTAL
1 Share Capital 67.00
2 Term Loan 111.00
3 FBWC 90.00
Total 268.00

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 Civil Engineering Cost
The Plant will require about 5000 SFT Built-up area excluding office
room & Workers Rest Room. Building construction cost is estimated at
Rs.35.00 Lakhs including Site development.

Human Resource
The Total Human Resource requirement of the plant will be 16 Persons. The Manpower
list and the labour cost is as follows:

Class of Salary/ Wage Amount (in

Nos
Manpower (in Rs.) Rs.)
Production
9000.00
Supervisor 1 9000.00

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 Technician 3 7500.00 22500.00
Asst. Operator 3 6600.00 19800.00
Packing Worker 3 6000.00 18000.00
Sales Executives 4 9000.00 36000.00
Office cum Stores
7500.00
Assistant 1 7500.00
Watchman 1 6000.00 6000.00
TOTAL 16 118800.00

Training
A training program is proposed for one Production Technician and
Technician for about a month at the machinery suppliers’ plant.
Further, Training program for about two months is planned to arrange
at Promoter’s Manufacturing facility by the technical persons of
Machinery suppliers.

FINANCIAL EVALUATION
Performance & Financial Indicators
2015- 2016- 2017- 2018- 2019- 2020- 2021- 2022-
Parameters
16 17 18 19 20 21 22 23
  EST PROJ PROJ PROJ PROJ PROJ PROJ PROJ
Domestic
97.95 646.47 705.24 764.01 822.78 881.55 940.32 999.09
Sales(Gross)
Export Sales 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Sales 97.95 646.47 705.24 764.01 822.78 881.55 940.32 999.09
% rise/fall (-) in 560.00
  9.09% 8.33% 7.69% 7.14% 6.67% 6.25%
net sales %
Profit Before tax 10.32 24.49 26.69 28.53 29.09 30.33 32.41 35.09
PBT/ Sales (%) 10.53 3.79 3.78 3.73 3.54 3.44 3.45 3.51
Profit After Tax 7.22 17.14 18.69 19.97 20.36 21.23 22.69 24.56
PBDIT/Interest
5.49 2.63 2.80 2.99 3.16 3.42 3.85 4.43
(times)
Cash Accrual 23.72 31.48 31.17 30.84 29.84 29.51 29.92 30.89
Paid Up Capital 67.00 67.00 67.00 67.00 67.00 67.00 67.00 67.00
TNW 74.22 91.37 110.05 130.02 150.38 171.62 194.31 218.87
TOL/TNW 2.95 2.41 1.86 1.45 1.15 0.91 0.72 0.60

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 (times)
Adjusted TNW 74.22 91.37 110.05 130.02 150.38 171.62 194.31 218.87
Adjusted
2.95 2.41 1.86 1.45 1.15 0.91 0.72 0.60
TOL/TNW
NWC 59.98 75.02 89.73 104.14 117.53 130.60 144.09 165.38
Current Ratio 1.54 1.58 1.69 1.80 1.90 2.00 2.10 2.25
Comments on Financial i. Net Sales: The promoter has estimated Sales of
Indicators Rs.97.95 Lacs for the first year. This is the Sales for
only 2 months in FY2015-16. Promoter instills
confidence with the installed capacity of the unit and
this seems reasonable. The Sales for FY2016-17 and
FY2017-18 are Rs.646.47 Lacs and Rs.705.24 Lacs
are of full year turnovers and reasonably achievable
with the progression.

ii. Profitability (PBT/NS): The profitability of the

unit stands at 10.53% in FY2015-16. It is due to less
burden of Term Loan Interest, Term Loan Repayment
obligation, because of 3 months moratorium period.
It is then decreases to 3.79% in FY2016-17. From
third year the profitability is maintained at an
average of 3.58% till FY2022-x23.
iii.TNW: The increase in TNW during the year 2015-
16 is Rs.17.15 Lacs. This is due to plough back of
profit. Further, plough back of profit of Rs.18.69 Lacs
increased TNW to Rs.110.05 Lacs in FW2016-17.
iv. TOL/TNW
The highest Ratio during the year under
implementation is 2.95 in the year 2015-16. From
third year onwards, the Ratio is below 2.0, i.e. well
within bench mark level.

v. Current Ratio: The Current Ratio for first year is

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 1.54 which is more than acceptable level of 1.33.
Thereafter, Current Ration is showing progression
trend for all the years.

vi. DSCR: Average Gross DSCR is 1.80 which is

above of the acceptable level of 1.75.

QUALITY SYSTEMS

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 Bureau of Indian Standard Laid down following Specifications :
IS 14491: 1999 -low Carbon high strength cold rolled steel sheets &
coil for cold forming
IS 811: Cold Formed Light Gauge Structural Steel Sections
IS 12093: Code of practice for laying and fixing of sloped roof coverings
using plain and corrugated galvanized steel sheets
IS 1254: Corrugated aluminium sheet
IS 12583: corrugated bitumen roofing sheets
IS 14871: Products in Fibre Reinforced Cement - Long Corrugated or
Asymmetrical Section Sheets and Fittings for Roofing and Cladding
IS 12093: Code of practice for laying and fixing of sloped roof coverings
using plain and corrugated galvanized steel sheets
IS 277: Galvanized Steel Sheets (Plain and Corrugated )
IS 1367, Part 14: Sec 3~Technical Supply Conditions for Threaded
Steel
Fasteners, Part 14: Mechanical Properties of Corrosion-resistant
Stainlesssteel

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 Fasteners, Section 3: Set Screws and Similar Fasteners not Under
Tensile stress.

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