SECTION A

INTRODUCTION

BELTS
A belt is a loop of flexible material used to link two or more rotating shafts
mechanically. Belts are also used as a source of motion, to transmit power
efficiently, or to track relative movement. Conveyor Belt is an another
application where the belt is adapted to carry a load continuously between
two points.
Classification of belts based on their functions—Conveyor and Transmission
Transmission belts are also classified as
1. V – belt
2. Flat belting
3. Positive driven Belts

CONVEYER BELTS

Conveyer belts are used to transport material from one point to another point
.
Belt conveyor is constantly operating transporting equipment which is mainly
used to convey mass bulk material like mineral, coal, sand, etc in powder or
block as well as packed freight in metallurgy, mining, building heavy industries
and transportation industry. Belt conveyor is the most perfect conveying
equipment for coal-mining, because it can work efficiently and continuously.
Compared with other transporting equipments, belt conveyor not only has the
merits of long conveying distance, big capacity, constant working operation,
but also with the features of operational reliability, easy to have automated
and concentrated control. Belt conveyor has become the key equipment
especially for high-output and high-efficiency coal mine.

PRODUCT DESCRIPTION
Top Cover
Designed to 1protect the carcass from service conditions like oil, heat,
abrasion, etc.
Skim Coat
Compounded for excellent adhesion between plies for protecting against ply
separation
Carcass
Extremely low stretch characteristics of fabric and good troughability.
Bottom Cover
Excellent in abrasion and flexibility, provides wearing surface against pulleys
and
idlers.

Types of a common belt conveyor

A common belt conveyor can be divided into three groups in the following
way:
(1) A commonly used belt conveyors. It is for common transferring use, like in
coal
Preparation plant in ground.
(2) A ribbed belt conveyor. There is a projecting thread on the working surface
of the
belt, and the working angle can reach to 35 degrees.
PROPERTIES REQUIRED FOR BELT

➢ High strength
➢ Low mass
➢ Low relative elongation
➢ High elasticity longitudinally and crosswise
➢ High wear resistance
(fig 1.1)
 SECTION B
MARKET SURVEY
 MARKET SURVEY

INTRODUCTION TO MARKET TREND AND DEMAND

This section is meant to study the demand of product in the
market and the feasibility of a new born small scale industry to catch it’s
existence in the struggle of the industrial field. This market survey shows the
fact that the conveyor belt may be is an unavoidable item because which has
high demand all and expecting an increased demand over the India.
The extend of availability of the statistics of the demand and
production rate is very limited

The main areas of conveyor belts are as follows;

➢ Agriculture
➢ Construction – heavy building materials
➢ Food processing
➢ Mining and quarrying
➢ Factory production line
 SECTION C
PRODUCTION REQUIREMENTS
 PRODUCTION REQUIREMENTS

LAND AND BUILDING

Location
The plant location is selected considering various factors. Plant location plays a
major role in the design of a production system. As it determines the cost of

(a) Getting suitable raw materials

(b) Processing material to finished goods
(c) Finished products distribution to customers

The location for the plant is selected after ensuring that it has got all the
following infra-structural facilities such as;

•Availability of raw materials

•Transport facilities
•Availability of skilled labour
•Availability of power
•Availability of water
•Communication facilities
•Financial and other aids
•Land
•Cost of land
18 cent of land is sufficient for starting this project. The cost
of land per cent is around Rs.100000/- in Kottayam district. Hence the total
capital required for land is approximately Rs.1800000/-. Cost of the land and
building is shown in Annexure I-A.
Plant Layout

In deciding the layout of a plant the main objective is to utilise the available
facilities most advantageously and thereby reduce the operational costs to a
minimum. It should also be flexible to accommodate future expansion of the
plant. The following factors are to be kept in mind while designing a plant
layout for the smooth and regular functioning of the plant.

• Easy handling and transportation of materials

• Minimum movement of workers
• Maximum utilities of space
• Safer, better and improved working condition
• Increased flexibility for change in product design and future expansion
• Increased productivity and better product quality
• Effective supervision and control

Building

Suitable and convenient building is one of the main parts of an industry. It

must have all facilities such as office room, workers amenities, store room and
sufficient space for other machineries. After taking into consideration the
future expansion requirements, a factory building of floor area 3600 is desired
for the unit. The minimum plot area requirement for the factory is about 20
cent. The space for individual requirements is given below;

• Veranda 225 Sq. Ft

•Office 450 Sq. Ft
•Raw material store room 500 Sq. Ft
•Weighing room 100 Sq. Ft
• Moulding section 750 Sq. Ft
•Buffing and finishing 300 Sq. Ft
•Testing room 225 Sq. Ft
• Store room 525 Sq. Ft
• Parking area 450 Sq. Ft
•Toilet 75 Sq. Ft
Total 3600 Sq. Ft

RAW MATERIAL REQUIREMENTS

POLYMER
Styrene Butadiene rubber is the main raw material . it is a general purpose
synthetic rubber produced from the monomers such as styrene and butadiene
.SBR still constitute 60% of the total synthetic rubber consumed in the world
SBR is manufactured by freeradical addition polymerization either emulsion or
solution polymerization techniques

PROPERTIES OF SBR
➢ Good abrasion resistance
➢ Good flex resistance
➢ Good heat resistance
➢ Resistance to acids and oils

NYLON FABRIC

Nylon is a general designation for a family of synthetic polymers known as

polyamides. Several from of nylon fiber depending on chemical synthesis.
Nylons are generally tough and strong ,durable is useful in wide range of textile
applications
Nylon fabrics can be prepared from RFL dipping process. The dip solution
chemicals are resorcinol formaldehyde , castic soda ,vinyl pyridine latex and
ammonia for RFL system .In this process nylons are dipped in adhesive
solutions and hot stretch baked and normalized for achieving better bond
strength with rubber compounds in vulcanizate
MACHINARY AND EQUIPMENTS

Each machinery is selected so that maximum utilisation of other available

facilities is made. The machinery required for this unit can be categorised
according to the basic operation to which they are used for. The machinery
size, capacity, and number are selected according to the rate of production.
The selection of machinery is important for getting higher productivity.

1 .Hydraulic press
2 .mixing mill
3. calender
4. Moulds
5 .Cooling system
6. Buffing machine
7. Weighing balances
8. Tensile testing machine
9. Water pump
10. Compression set apparatus
11. DIN abrader

A description of the machinery is given below:

• Hydraulic press: Hydraulic press is used for moulding operations.
1m X 1m single day-light up-stroke, hydraulic press of 3 HP is used.
Heating can be done either by steam or fluid or electricity. It is a
multi-ram press to give uniform force to mould.
• MIXING MILL : mixing mill is used for incorporating various ingredients into
raw rubber. Size of mixing mill is 16 x 42 with chilled cast iron roles driven
by 60 HP motor. Mixing capacity 40 KG/ batch

• CALENDAR : Calendar is a machine used for making rubber or plastic sheet.

It is a set of rollers arranged on a vertical frame .
• Moulds: For moulding two piece moulds is used. It is made of mild steel.

• Cooling system: this is for cool the product and mould. It is done by
immersion in water or by a spray of water. The mould after moulding is
passing through the cooling tank for cool the mould and for set the
product.

• Buffing machine: Buffing machine is used to remove the flash from the
product after moulding to give the product a good appearance.

• Weighing balance: These are used for weighing raw materials and
finished products. The used weighing balances have a maximum capacity
of 100, 400 kg.

• Universal tensile testing machine : it is used for testing product quality

• Water pump: Water pump is used to pump the water from the well to
the storage tank.

• Compression stress apparatus: Compression stress apparatus is used to

measure the compression stress properties of the product, for ensuring
the desired properties.
• DIN abrader : used for checking abrasion resistance of product
MAN POWER
The total number of administrative and production personals is fixed so as to
have an efficient administration and smooth running of factory

Administrative staff
The administrative staffs work only in the general shift. The administrative
staffs consist of following personals.

1. Manager –he has in charge of the factory.

2. Accountant – he should be able to handle the accounts of the factory as wel
l as sales operations.
3. Clerk cum typist
4. Chemist cum lab in charge
5. Supervisor
6. Peon
7. Watchman
8. Sweeper

Production staff

1. Production supervisors - 2 persons each production supervisor will be in

charge of the production in each shift.

2. Skilled workers – 4 persons 1 skilled worker each is required for

hydraulic press &mixing mill in each shift

3. Semi-skilled workers – 4 persons required for hydraulic press and mixing

mill in each shift.

4. Unskilled workers – 4 persons required for collect the finished goods and
do the necessary packing.

5. Mechanic
UTILITIES AND OTHER INFRASTRUCTURAL REQUIREMENTS

Water

Water is taken from the water supply scheme available in the industrial estate
and is collected in the overhead tank to ensured uninterrupted supply. Water
is required for cooling the mould and product, for steam generation and toilet
etc. The daily requirement is 10 kilolitres.

Electric power

The total connected load of all the major machineries is approximately 702000
KWH. The electricity bill and the fuel charges together will be about
Rs.3510000.

Transport and Communication Facilities

The industrial estates are provided with good transport and communication
facilities and so the transportation of raw materials and finished goods
(product) will be easy.
 SECTION D
PROCESS OF MANUFACTURING
 PROCESS OF MANUFACTURING
The main consideration in the designing of compounds are price , service ,
properties ,availability of raw materials and processing characteristics

Service properties requirements

❖ High strength
❖ Low mass
❖ Low relative elongation
❖ High elasticity longitudinally and crosswise
❖ High wear resistance

PROCESS FLOW CHART

 RUBBER
 WEIGHING
 MASTICATING
 MIXING
 HOMOGENIZATION
 MATURATION
 PREWARMING
 CALENDARING
 MOULDING
 STRIPPING
 FINISHING
 PACKING AND DISPATCH

COMPOUNDING

The mixture of rubber and ingredients used for manufacture of any rubber is
called “compound” and art of making such a compound is called compounding
 SELECTION OF INGREDIENTS

1. SBR
SBR is the most suitable base polymer to satisfy the service
requirements of our product
• High strength
• Wear resistance
• Abrasion resistance
2. Activator
The combination of zinc oxide and stearic acid system is used for
activating the crosslinking system
3. Filler
Fillers are used to improve modular and failure properties such as tensile
strength tear resistance abrasion resistance of final vulcanizate
4. Processing aid
Aromatic oil gives best process ability and it is assist the filler
incorporation
5. Antioxidant
Rubber containing higher amount of unsaturation such as SBR is prone
to oxidative degradation on attack by ozone. To protect rubber from
these oxidative degradation antioxidant is used
6. Accelerator
It is used in rubber industry to increase the speed of vulcanization
7. Tackifier
It is added to rubber compounds to help bond different parts of an
article together until they cured
8. Curing agent
Sulphur is most suitable agent for SBR because of the presence of high
amount of unsaturation
Formulation
 PROCESS OF MANUFACTURING

The NR can be softened by mechanical work termed mastication by heat or by

chemicals . The increase of plasticity of decrease of viscosity brought about by
mastication
Mixing is the operation required to obtain a through and uniform dispersion of
rubber and compounding ingredients . A definite time, temperature, order of
addition, procedure should be followed for mixing. The commonly used
equipment for making rubber at small volume in an open roll mill. The rolls
rotate in opposite direction with friction ratio of 1:1.25
The various ingredients are added using the formulation then the compound is
homogenized six times to give adequate distribution of the ingredients and
then sheeted out in the required thickness

Maturation

The sheet of the compound is then kept for maturation for 24 hrs. Maturation
helps to develop better technological properties by uniform distribution of all
ingredients into rubber mix

PRE-WARMING

The matured compound is fed in to pre-warm mill. Pre- warming is mainly

intended to reduce the cure time. It also reduce strain during vulcanization and
provide better flow of rubber compound inside the mould cavity, leading to
the quality product
Manufacturing
(1) Selection and treatment of textile, conveyor belts mainly consist of two
main part (2) textyl reinforced carcass and cover. For reinforcement synthetic
fibers are mainly used such a polyester, nylon aramid, sometimes cotton,
fiberglass and steel wires are also used. The physical properties of the
synthetic fibers (nylon, polyester, aramid can be modified by heat stretching
and heat releasing process. The former process increases the modulus and
gives lower thermal free shrinkage.
For low stretch belting steel cords are used. It have the additional
advantages of becoming non-corroding and fire resistant.
Drying of fabric is essential to avoid blowing of the laminates occurring
during the vulcanising operation. The fabric is dried by passing over a multiple
steam heated drum, dry over a hot plate in 1150C or in a drying oven.
Compounding choices of rubber mixes depend on the type of belts being
manufactured in general purpose, heat resistant oil resistant, or food quality.
The carcass compound for the general purpose belt is usually a high quality NR
or SBR with low moduless fillers and a heigh scorch time vulcanizing system.
There are two main types of cover compound for general-purpose belts
(1) for abrasion purposes, (2) for maximum resistance to cutting and gauging.
The compound generally have flat cure characteristics and must be compatible
with the carcass stocks.

Fabric treatment.
To ensure maximum fabrics bondability fabric are treated as like in the tyre
cord manufacturing. This treated fabrics are sometime subjected to heat
stretching also.
Frictioning and Topping
To ensure good functionality a hot fabric is essential. Frictioning in
done in three or four roll calender. The rubberised fabrics are rolled in cotton
liners to prevent sticking. Some boding agents are also added to the rubber
compound for good bonding with the textyl.
Belt building
 Coated fabrics are cut accurately to the width required for a particular
belt in a cam cutting machine. The actual cutting widths will depend on the
construction required, the typical constructions used are

The cut width are adhered together by passing them through a doubling roll
arrangements until the correct number of plies are obtained. Another method
is with long building table with two bowl consolidating rolls, semi automatic
let off mechanisms, individual lines received and tension control. The joints in
adjacent plies being staggered to avoid any weakness occurring in the belt.
The covers are calendared directly into the belt carcass using a three or
four roll calendar, or calendared sheeting is applied on the building table in the
latter case the completely built belt in then consolidated and passed through
pricking rollers to remove any trapped air. The finished raw belt is stored in a
cotton or polyethene lining or chalked to prevent sticking prior to the
vulcanizing operation.

Vulcanization
Vulcanization of conveyor belting is carried out in either a press or a
continuous drum curing machine.
In continuous vulcanization belt is passed between a rotating steel drum on an
endless high tensile steel band. Pressure being applied by tensioning the steel
band hydraulically. Heat is applied to both sides of the product from the
internally heated drum and also through the steel band. Generally the
maximum product thickness is 32 mm and maximum product width varies
depends on the end use . The curing speed are variable between 65m / h to
4m / h giving cure times of from 3.5 min to 53 min.
Press curing
It is done in various types of large flat multi ram process. The row belt
is unsealed and fed to the press and section is vulcanized. The press have cool
areas at the ends of the press to prevent over curing between successive
sections of the belt. In the press there is an attachment a stretching
equipment. The belt being stretched up to a desired level prior to closing the
press. This stretching process is essential to prevent excessive lengthening of
the belt occurring in service

INSPECTION

The finished products are checking for imperfections such as crack, blisters etc.
visual inspection is sufficient
SECTION F
PRICING
 SECTION F
PRICING

In determining the prices for the products, great care has to be taken since it
has got pronounced effect on the financial state of the factory and its future
growth.

Since the conveyor belt is manufactured by our unit is technically

advanced, the selling strategy is to sell the product on quality. So cost oriented
pricing is adopted. But the unit cost of conveyor belt has to be comparable
with existing market price. Competition oriented pricing can also be adopted in
the initial stages of market penetration.

The existing market price of conveyor belt varies with different

manufactures. The conveyor belt manufactured by this unit can be select
minimum rate at the initial stage of marketing. After obtaining a grip in the
market the cost can be further increased step by step.
 SECTION G
CAPITAL REQUIREMENTS
 SECTION G
CAPITAL REQUIREMENTS

The financial aspects of firm are analysed in the following heads;

1. Fixed capital requirements

2. Working capital requirements
3. Gross capital requirements
4. Total manufacturing cost

F.1 FIXED CAPITAL REQUIREMENTS

This is sum of expenses required for plant, machinery, land, building

and pre-operating expenses. The estimated fixed capital cost is as follows:

1. Land and building Rs.7750000

2. Machinery and equipment Rs.5288000
3. Other fixed expenses RS.150000
4. Preliminary and pre-operative expenses RS.50000

TOTAL Rs.13238000

Details of each are given in Annexure – I

F.2 WORKING CAPITAL REQUIREMENTS

For calculating the working capital requirements, it is assumed that

three months raw material inventory for manufacturing, storing, selling and
credit realisation are necessary for the smooth and uninterrupted functioning
of the plant. So the working capital in the case is the total variable cost
increased during the period of three months and is calculated by following
heads:
1. Total raw material cost Rs. 13581432
2. Salaries and wages Rs. 2870400
3. Utilities Rs. 3510000
4. Miscellaneous expenses Rs. 290160

TOTAL WORKING CAPITAL(for 3 months) Rs.20251992

Details of each are given in Annexure – II

F.3 GROSS CAPITAL REQUIREMENTS

This is the total requirement required to start the factory. The gross
capital is calculated as follows;
1. Total fixed capital Rs.13238000
2. Total working capital Rs. 20251992
TOTAL Rs.33489992

F.4 TOTAL MANUFACTURING COST

This consists of all direct and indirect cost involved in the
manufacturing operation. This can be categorized as follows:
1) Raw material cost
2) Personnel expenses ie, salaries and wages
3) Utilities ie, cast of power & water
4) Miscellaneous expenses – This include maintenance of building,
machineries, insurance etc.
5) Other fixed cost and interest on the loan for working and fixed capital.
The annual costs involved on these heads are as follows;

1) Raw material cost Rs. 13581432

2) Personnel expenses Rs. 2870400
3) Utilities Rs. 3510000
4) Miscellaneous expenses Rs. 290160
5) Other fixed cost Rs. 765800
6) Interest on the loan Rs. 1714107

TOTAL Rs. 19861499

 SECTION H
FINANCING PLAN
 SECTION – H
FINANCING PLAN

For smooth resuming of an industry a sound financial plan is necessary.

It should clearly specify the amount to be borrowed. So the source of
borrowing the amount to be spent by the entrepreneur and the source are
quantum of subsidy if available etc.

SOURCE OF FUND

The following source offer financial assistance to set up and run an industrial
unit. The details are given below:

1. Kerala state Financial Corporation (KSFC)

KFC offers a loan a loan of 75% of land, building and machinery at an interest
of 14%. The repayment should begin with one year and is to be completed
within 81/2 years.

2. Commercial banks
Nationalised banks (SBI) offer loan for machinery on 2500000 margin money at
an interest of 11.5%. Repayment period is 3 years.

3. Industrial Development Bank of India (IDBI)

Industrial department extends marginal money loan for term loan as well as
working capital loan at a rate of interest of 13%. The repayment period will be
started within 3 months.
FINANCING OF THE PROJECT

The gross capital of Rs.13738940 is proposed to be realised in the

following manner.

• Loans Rs.12804205
• Own capital Rs.934735
• Gross capital Rs.33489992

Loans

75% of the land, building and machinery are to be borrowed from KFC
at 14% interest. This comes to be 75% of the working capital amounting to
Rs.1598205is to be borrowed from any nationalised bank at an interest rate of
13%.
Details are given in Annexure III-B

Own capital

The difference between the gross requirement and the total loan
available is called marginal money. This is to borne by the entrepreneur.
Details are given in III- B
 SECTION – I
PROFITABILITY
 SECTION – I
PROFITABILITY

PROFITABILITY RATE

The financial viability of a project is measured through profitability. The

project is expected to have a net profit of Rs.8004333. Profit ratios on fixed
capital, working capital, annual sales and own capital are worked out as
follows:

• Rate of return of Fixed capital

• Rate of return of Working capital
• Rate of return on Gross capital
• Rate of return of Annual turnover
• Rate of return on Own capital

Rate of return of Fixed capital

Fixed capital (one year) - Rs.13238000

Annual net profit - Rs.8004333

Rate of return = (Net profit)/(Fixed capital) x100= 60%

Rate of return of Working capital

Working capital - Rs.20251992
Annual net profit - Rs.8004333
Rate of return = 375%
3. Rate of return on Gross capital
Gross capital - Rs.33489992
Annual net profit - Rs.8004333
Rate of return = 23%

4. Rate of return of Annual turnover

Annual turnover - Rs.19008000
Annual net profit - Rs.8004333
Rate of return = 42%

5. Rate of return on Own capital

Total own fund - Rs.934735
Annual net profit - Rs.8004333
Rate of return = 856%
BREAK EVEN ANALYSIS
Breakeven point is the stage at which there is neither profit nor loss or
in other words breakeven point is that quality of sales at which the unit is just
able to recover all spares.
Breakeven point = F/(P-V)
Where; F = Annual fixed cost
P = Unit price
V = Variable cost
ANNUAL FIXED COSTS
Depreciation = 765800
Interest = 1714107
Salaries and wages = 2870400
Other overhead expenses = 290160
TOTAL = 5640467

TOTAL VARIABLE COSTS

Raw material cost = 13581432
Utilities = 3510000
Salaries and wages = 2870400
Total 17378472

Annual production = 864000

Variable cost/piece = 10
Average price/piece = 22
Break even point = 470039

Break even point % = 54%

 SECTION – J
ECONOMIC VIABILITY
 SECTION – J
ECONOMIC VIABILITY

The feasibility of the proposed project can be assumed from the profit
ratios and from the following details

I. INTEREST COMMITMENTS

Annual interest commitments are as follows:

1.Interest on estimated term loan on land, = 1218840

Machinery and building (14% of 8706000)

2.Interest on working capital loan = 207767

(13% of 1598205)

3.Interest on margin money loan = 287500

(11% of 2500000)

II. ABITITY TO PAY BACK BORROWING FUNDS

Though most of the financing institutions offer long repayment periods, it is

advisable to keep this period at a minimum. Once the pay back is started, the
ability to pay back is increased due to higher cash flows because of the
decreased interest.
 ANNEXURE-I
FIXED CAPITAL REQUIREMENT

FIXED ASSETS
1 Land and Building (Annexure I-A) 7750000

2 Machinery (Annexure I-B) 4518000

3 Other Fixed Expenses (Annexure I-C) 150000

4 Preliminary and Pre-operative Expenses 50000

(Annexure I-D)

TOTAL 12668000

ANNEXURE I-A
LAND AND BUILDING
Cost of one cent Rs.100000
Cost of 20 cent land Rs.1800000
Site levelling, fencing, drainage, road Rs.100000
The required building area 3600 Sq. Feet
The expense for making one square feet building Rs.1500
Total expenses for making one square feet building Rs.5400000
Expense for well digging Rs.100000
Electrification Rs.200000
Overhead expenses Rs.50000
Grand total Rs.7750000
 ANNEXURE I-B
MACHINARY
MACHINARY NO. COST
16’’ X 42’’ Mixing mill with 60 HP 1 1000000
induction motor
2 day light 2 ram Hydraulic press 1 2000000
Cooling tank 1 100000
Electronic balance 3 18000
3 roll calender 1 1400000
Mould 10500
Tensile testing machine 1 125000
DIN abrader 1 105000
Grand total 4748000

ANNEXURE I-C
OTHER FIXED EXPENCES

1. Office equipments, Working table,

Furniture, fire fighting equipments and 150000
other miscellaneous expenses

TOTAL 150000
 ANNEXURE I-D
PRELIMINARY AND PREOPERATIVE EXPENSES
1 Registration and Related works 25000
2 Telephone, printing etc. 10000
3 Travelling expenses 10000

4 Miscellaneous expenses 5000

TOTAL 50000
 ANNEXURE II
WORKING CAPITAL

1 Raw material (Annexure II-A) 13581432

2 Man power (Annexure II-B) 2870400

3 Utilities (Annexure II-C) 3510000
4 Overheads 290160

TOTAL 20251992

Working expense for one year = 20251992

Working expenses for three months = 2130940

ANNEXURE II-A
RAW MATERIALS AND COMPOUNDING INGREDIENTS

3.01Kg of raw material is needed to produce one product. For producing

2880 pieces of paver tile per day 2% production loss (Assuming 300 working
days per year.)
INGREDENTS KG COST/KG
SBR 1 220
Carbon black 1 178
ZnO 1 155
Stearic acid 1 80
MBTS 1 300
DPG 1 325
sulphur 1 30
Cumaron resin 1 110
 Other requirements like soap oil and silicon emulsion = 10000
Total raw material cost for 3 months = 13581432

ANNEXURE II-B
MANPOWER REQUIREMENTS

NAME OF POST NO.OF RATE OF PAY TOTAL PAY/YEAR

STAFF /MONTH
Manager 1 25000 300000
Chemist cum lab in 1 12000 144000
charge
Accountant 1 10000 120000
Supervisor 2 10000 240000
Peon 2 8000 192000
Watchman 2 6000 144000
Sweeper 1 5000 60000
Mixing mill operator 2 10000 240000
Mixing mill helper 2 7000 168000
Hydraulic press 2 10000 240000
operator
Hydraulic press 2 7000 168000
helper
Mechanic 1 12000 144000
Calder machine 2 8000 192000
operator operator
Helpers 2 6000 144000
TOTAL 2496000

Total man force = 23

Total rate of pay per annum = 2496000
Add benefit (15%) bonus for worker = 374400
Total = 2870400
 ANNEXURE II-C
UTILITIES
a. POWER

SL.N0 MACHINERY KW AVEREGE KWH/DAY KWH/ANNUM

OF HOURS
OF
WORKING
1. Mixing mill 45 20 900 270000
2. Hydraulic press 35 20 700 210000
3. Buffing machine 12 6 72 21600
4. Oven 35 18 630 189000
5. Compression 1 1 1 300
stress machine
6. Lighting 1 20 20 6000
7. Fan 1 7 7 2100
8. Pump set 2 4 8 2400
9. Additional - - 2 600
Total 702000

Cost of power
Power per annum = 702000 KWH
Cost of power per KWH = 5/Unit
Cost per annum = 3510000

b. WATER
Cooling purposes for machinery
Toilet and washing purpose
Total/day
Total cost of utilities
= 8 Kiloliters
= 2 Kiloliters
= 10 kiloliters
= 3510000
 ANNEXURE II-D
OVERHEADS (ANNUAL)

1. Repair and maintenance of machinery (1%) = 36580

2. Repair and maintenance of building (1%) = 77500
3. Insurance 1% of fixed capital = 116080
4. Audit fee legal charges = 20000
5. Postage, Telephone, etc. = 5000
6. Advertisement = 5000
7. Travelling expenses = 20000
8. Miscellaneous = 10000
Total = 290160
 ANNEXURE III
GROSS CAPITAL

1. Fixed capital = 13238000

2. Working capital for 3 months = 20251992

Gross capital = 33489992

ANNEXURE IV
INTERESTS

1. Interest on estimated term loan

on land machinery and building = 1218840
(14% of 75% of 11608000)
(14% of 8706000)

2. Interest on working capital loan

(13% of 75% of 2130940) = 207767
(13% of 1598205)

3. Interest on margin money loan = 287500

(11.5% of 2500000 )
Total = 1714107
 ANNEXURE V
OTHER FIXED COST

1. Depreciation on machinery (10%) = 365800

2. Depreciation on building (5%) = 387500
3. Depreciation on miscellaneous fixed (5%) = 7500
4. Depreciation on pre-operative expenses (10%) = 5000
Total = 765800

ANNEXURE VI
TOTAL MANUFACTURING COST PER ANNUM

1. Raw material cost 13581432

2. Cost of utilities 3510000
3. Salaries and wages 2870400
4. Overheads 290160
5. Interest on loan 1714107
6. Other fixed cost 765800
Total 22731899

ANNEXURE VII
SALES AND TURNOVER

Annual sales turnover (22x864000) 19008000

Total cost of production 11003667

Net profit 8004333

 SUMMERY OF THE PROJECT

1. Name of the project - Paver tile from waste plastic

2. Total fixed investment - 11608000
3. Working capital (3months) - 2130940
4. Total investment - 13738940
5. Working shift per day - 2
6. Personal requirements - 23
7. Annual production - 864000
8. Annual sales turnover - 19008000
9. Break even production - 470039
10.Rate of return on investment -
11.Own capital - 934735
12.Cost of production - 11003667
13.Net profit - 8004333
14.Loan repayment period -

The project shown is economically sound and feasible.