Detailed Project Report

On
Thermocol & Paper Disposable Plates and Cups
Manufacturing Plant

Submitted By:-

Tana Robin
Amba-Kolma Village, Doimukh,
PO/PS Doimukh,
Dist. Papum Pare, Arunachal Pradesh.
 Contents
Sl. No. Name of the Profile Remarks if
any
1. Project at a Glance
2. Introduction
3. Main objective to run or set up a thermocol
disposable products manufacturing Machine
A. Market Potential
B. Eco-Friendly with health and Environment
4. Manufacturing process and know how
5. Basis and presumption of the project
6. Inspection and quality control
7. Production capacity per annum
8. Pollution control
9. Plant and machinery
10. Raw material and packing materials
11. Land and building area required
12. Manpower
13. Sales revenue (100% capacity)
14. Financial aspect
A. Fixed capital
B. Working capital
I. Staff and Labour Salary (Per month)
II. Raw material required per month
III. Utilities per month
IV. Contingent expenses per month
V. Total working capital per month
VI. Working capital for 3 (three) month
VII. Financial Analysis
A. Cost of production per year
B. Turnover per year
C. Net profit (Before taxation) per year
D. Net Profit Ratio
E. Rate of return on total investment
F. Break Even Point
 Project at a Glance

Name of the Project : Manufacturing and processing unit on thermocol

& paper disposable plates and cups

Location : At Doimukh

Promoter : Shri Tana Robin

Permanent Address : Laptap Village, Pawar Panchayat under Toru circle

P.O Kheel and P.S Sagalee, District Papum Pare
Arunachal Pradesh

Present Address : Amba- Kolma Village Doimukh, P.O Doimukh

P.S Doimukh, Dist. Papum Pare
Arunachal Pradesh

Name of the Firm : Aab Sukia Tara enterprises

Total Project Cost (in Rs.) : 2,145,000/- (Twenty one lakhs forty five thousand only)
(Only for Plant Machinery and Equipments)

Financial Pattern :

Promoter’s contribution :
Financial Assistance :

Bank Borrowing for WCL :

1st year :
2nd year :
3rd year :

Effective working days : 318

Employment :
 1. Introduction

Disposal products have an urban as well as rural market. These products are mostly used
during social functions, religious gatherings, parties, marriage ceremony, outings, in sweet
shops, by caterers etc. The products have many advantages and are hence preferred as
compared to standard utensils and crockery for serving eatables. They can easily be disposed
off after use and hence save a lot of labour as far as cleaning/drying of utensils are concerned.
These are easily transportable and easy to handle. These products are eco-friendly and does
not pollute the environment as it is bio-gradable when exposed to the environment after used
off.

2. Main objective to run thermocol disposable products manufacturing machine

A. Market Potential

In our state people are religious and organize functions throughout the year all such occasions
call for social gathering and celebrations with meals, snacks sweets being served. Further, our
vast populations organizes marriages, celebrate birthdays and other family functions on a
regular basis. Sweet shops and small eateries can be found at every street corners and all such
joints use these disposal plates and bowls.
Due to the recent changes in the life style of urban and rural areas in the state the demand
for disposable cups in the state increasing at a rapid rate.

Moreover, to overcome this demands we the people, those who run the grocery and whole
seller have to buy these disposable products from our neighbouring state, Assam. Therefore,
it would be better if we have settled own disposable manufacturing unit in our state. So that,
we will not be dependent with our neighbouring state to fulfil the demand of this disposable
products.

A wide range of paper cups are now produced and marketed in India.
The paper cups are reckoned to be a high potential business for India. Manufacturing
Paper Cups is the purpose of satisfying needs and wants of Consumers is the market place.
Developing a strategy for delivering an effective combination of food grade quality and cost
effective features for consumers within the target market is done. The prospects of paper cups
depend on the value of customers who utilize it. But in our country paper cups are used by all
the people as it is easy to use, hygienic and eco-friendly. Hence, per capital consumption has
increased and the demand for it is recognized. While the demand for paper cups has shown a
good growth, the company will be successful in strategizing its market operations. As paper
cups are a product of daily consumption and necessity, their marketing will not be a problem
as the consumers are aware of the advantages of using paper cups. The raw materials are
indigenously available and the manufacturing process is also simple. Paper Cup find potential
market in IT companies, Educational Institutions, Canteens, Industrial Canteens, Restaurants,
Fast Foods, Catering People, Tea Shops, Paper Product Dealers and Super Markets.
B. Eco-friendly with health and environment

Urge of disposables is a great step towards preventing food-borne diseases. As they are used
only once thus these products significantly lower the food contamination and spread of
diseases.

Disposable Thermocol Products and dishes are very much needed in many outdoor events.
Disposable thermocol products are becoming more popular across the globe as a way to
become more eco-friendly and reduce exposure to food borne infections. It does not pollute
the environment as it is easily bio-degradable when exposed to environment.

3. Manufacturing process and know how

The process of manufacturing is not very complicated. The product is manufactured using the
specific die. The paper and the polythene sheets are previously cut to size or can be purchase
as per the production requirement. The specific die is mounted on the press and the die is
heated to the desired temperature. The two layer of paper and the polythene sheets are
placed in between the male-female die parts and pressure is applied so that the product takes
shape. The formed product is next removed and another set is loaded. The machine is an
ordinary press with one fixe platform and another moving plunge. The movement of the
plunge is through hydraulic mechanism. The formed products are collected and the edges are
trimmed to give it a proper shape. The plates and bowls are packed separately and stocked
for dispatched.

Now a days, fully automatic disposable plastic glass and thermocol manufacturing machine
is available. And, it is totally operate on electricity. These machines is free from any kind of
pollution to the environment.

The machinery is all indigenously available. The product capacity envisage is 30000-40000 nos
per day per machine on two shifts basis for 300 days per year.

We have proposed to use the Automatic Paper Cup Forming Machine for our manufacturing
process of Paper Cups. The general structure of paper cup forming machine is composed of
three stages. They are:

1. The first stage: mainly finishes transmission of the paper cup's sidewall paper, shaping
side-wall and transferring them to the second stage after shaped.
2. The second stage: transmission of the cup-bottom paper, shaping cup bottom, joining the
shaped side-wall and cup bottom, automatic transmission and discharging of the shaped cup,
and curling the shaped cup's edge.
3. The third stage: mainly includes 45 degree angle separating, preheating, curling bottom,
curling rim and so on mechanisms, which are the important parts in finishing paper cup.

4. BASIS AND PRESUMPTION OF THE PROJECT:

i. The process of manufacture is on the basis of eight hours per day with three
hundred working days in a year.

ii. Labor and wages mentioned in profile are as per prevailing local rates.

iii. Interest rate at 15% considered in the project

iv. The Promoter contribution will be 15% of the total project cost.

vi. The capacity of the plant nos. of paper cups per day.

5. INSPECTION AND QUALITY CONTROL:

Plant will strictly adhere to the International FDA standards and Indian BIS
Standards in the process of manufacturing Paper Cups from procuring high quality food grade
raw materials to hygienic methods of packaging.

6. PRODUCTION CAPACITY PER ANNUM:

Quantity: 10368000 nos. of PE paper cups per annum, 5184000 nos of paper plates per annum
& 2822400 nos of thermocol plates per annum. These production quantities is just an
approximate estimation but the actual production may vary accordingly with working hours.

7. POLLUTION CONTROL

The technology adopted for making paper cups is eco-friendly. Cup forming process is totally
automatically done by the machine, only feeding and packaging involves manual work. The
scrap papers created out of this manufacturing process also can be sold for recycled paper
converters. Hence there is no chance of any pollution out of this industry.
 8. Plant and Machinery

The main plant and machinery required comprise

I. Fully automatic disposable glass manufacturing machine. – 1 no.
II. Fully automatic thermocol disposable plate, Cups and glass manufacturing
machine. – 1 no.
III. Bag sealing machine. – 1 no.

Total cost of machinery and equipment is estimated to be Rs. 2,085,000 lakhs approximate.

The unit will also require miscellaneous assets such as furnitures, fixtures, storage facilities
etc. the total cost of these is estimated to be Rs. 60,000/-.

The total requirement of power shall be 3 HP. The unit will need water for general
consumption.

9. Raw material and packing material

The basic raw materials for the unit are good quality scrap paper and polythene sheets. For
packing the unit will require polythene bag and hessian sacks. The cut to size paper is readily
available in two varieties thick and thin.

10. Land and Building Area Require

For the smooth operation of the unit, it will require some spacious built up area approximately
500 sqm.

11. Manpower

For the smooth functioning of the unit the requirement of manpower is expected to be
around 6 persons.

Sales person Self or Hired

Skilled workers 1
Unskilled/Helpers workers 3

12. Sales revenue: (100% capacity)

The selling price varies depending on the products quality.

 13. Financial Aspects

A. Fixed Capital
I. Land and Building:

Covered area of 500 sqm is needed: rented 5000/- month

II. Machinery and Equipments

Sl. No. Description Qty. Rate Value

1. Machine
Paper Cup Making Machine 1 850,000 850,000
Paper Plate Making Machine 1 850,000 850,000
2. Dyes 6 50,000 300,000
3. Office equipments and Furniture 60,000 60,000
4. Electrification and installation 25,000 25,000

Total: 2,085,000/-

III. Pre-Operative Expenses : 10,000/-

Therefore, total fixed capital: Sum of (II +III): 2,095, 000/-

B. Working Capital

1. Staff and Labour ( per month)

Sl.No. Description No. Salary Total

1. Sale cum Production 1 15,000/- 15,000/-
Manager
2. Skilled Worker 1 10,000/- 10,000/-
3. Unskilled Worker 3 7,000/- 21,000/-

Total: 46,000/-
Add Pre Requisite @15%: 6,900/-
Total : 52,900/-
Approximately : 53,000/-
 2. RAW MATERIAL REQUIREMENTS ( PER MONTH)

Sl.No. Description Quantity Rate (Rs.) Value (Rs.)

in per Kg
1. Printed PE Paper 2836 Kg 92/- 260,912/-
2. Bottom Reel 1134 Kg 78/- 88,452/-
3. Packing Materials 25,000/-
4. Thermocol Plate Raw Material
1680 Kg 145/- 243,600/-

Total: 617,964/-
Approximately: 618,000/-

3. UTILITIES (PER MONTH)

Sl. No. Description Amount (Rs.)

1. Power 10000/-
2. Machine Oil & Grease 1000/-

Total: 11000/-
4. CONTINGENT EXPENSES (PER MONTH)

Sl. Description Amount (Rs.)

No.
1. Rent 5000/-
2. Postage and Stationary 500/-
3. Transportation Charge 10000/-
4. Maintenance Charge 3000/-
5. Advertisement 2000
6. Phone 2000/-
7.

Total: 22,500/-
 5. Total Working capital (Per month)

Sl.
No. Description Amount (Rs.)
1. Raw Materials 618,000/-
2. Utilities 11,000/-
3. Salary 53,000/-
4. Contingent 22,500/-
5.

Total: 704,500/-

6. Working capital for 3 months

Working capital for 3 months = 3 *704500/-
=2,113,500/-
TOTAL CAPITAL INVESTMENT
Fixed Capital : 2,095,000/-
Working capital for 3 months: 2,113,500/-
Total : 4,298,500/-

7. FINANCIAL ANALYSIS

A. Cost of Production (Per Year)

Sl. Description Amount (Rs.)

No.
1. Total Recurring Cost 8,454,000/-
2. Depreciation on Machine @10% 170,000/-
3. Depreciation on Dyes @ 25% 75,000/-
4. Depreciation on Office Equipments and Furniture @ 20% 12,000/-
5. Interest on total Capital Investments @ 15% 644,775/-

Total: 9,355,775/-
 B. Turnover (Per Year)

Sl. Description Qty. Rate (Rs.) Value (Rs.)

No.
1. Printed PE Paper cups 10368000 0.29/piece 3,006,720/-
pieces
2. Paper plates 5184000 2/piece 10,368,000
pieces
3. Thermocol Plates 2822400 2.5/piece 7,056,000/-
pieces

Total: 20,430,720/-

C. Net profit (Before Taxation) (Per Year)

Turnover: 20,430,720/-
Cost of production: (-) 9,355,775/-
Total: 11,074,945/-

D. Net Profit Ratio:

Net Profit Ratio = (Net Profit per year/Turnover per Year) *100
= (11074945/20430720)*100
= 54.2
E. Rate of Return on Total Investment
Rate of Return on Total Investment = (Net Profit per Year/Total Investment)*100
= (11074945/4298500)*100
=257.64 %
 F. Break Even Point
Fixed Cost

Sl.
No. Description Amount (Rs.)
1. Rent for one year 60,000/-
2. Total Depreciation 257,000/-
3. Interest on Total Investment 644,775/-
4. @40% of Salary & Wages 254,400/-
5. @40% of Utilities and Contingents 160,800

Total: 1,376,975/-
B.E.P = (Fixed Cost/ (Fixed cost + Net Profit))*100
= (1376975/ (1376975+11074945))*100
= 11.05%

Address of the machinery & equipment cum raw materials Suppliers

1. AR Inventives
Office: H/No. 56, Bye- Lane No. -1, B.K Kakati Road, Ulubari, Guwahati – 781007 (Assam)
Ph. No. 98641-0886, 9085141678.