PROJECT REPORT

Of
TOUGHENED GLASS MANUFACTURING

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Toughened glass manufacturing plant.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs

in project identification for investment and in order to serve his objective; the document
covers various aspects of the project concept development, start-up, marketing, finance
and management.

[We can modify the project capacity and project cost as per your requirement. We can
also prepare project report on any subject as per your requirement.]

M/s Institute of Industrial Development

A Unit of M/s SAMADHAN Samiti
KVIC Pavilion, Gandhi Darshan,
Raj Ghat, New Delhi 110002

Head office: Samadhan Tower, 27/1/B,

Gokhle Marg, Lucknow-226001

Website: www.iid.org.in

Email:support@iid.org.in
 TOUGHENED/ TEMPERD GLASS

1. INTRODUCTION

Tempered or Hardened or Toughened glass is a type of “Safety Glass” processed under

controlled Thermal or Chemical conditions to increase its strength compared with normal
glass. Tempering puts the outer surface into compression and the interior into tension. Such
stresses cause the glass, when broken, to shatter the glass into small granular pieces instead
of splintering into jagged shards as ordinary annealed glass does. These granular glasses
are likely to cause less injury.

Fig.: Toughened glass for Building envelopes.

Toughened glass is used for its safety and strength in a variety of applications. It is used in
the passenger vehicle windows, shower doors, aquariums, architectural doors and tables,
refrigerator trays, bulletproof glass components, diving masks, plates and cookware.
Toughened glass is almost four times stronger than stronger than Annealed glass. The
greater contraction of the inner layer during manufacturing induces compressive stresses in
the surface of the glass balanced by tensile forces in the body of the glass. Fully toughened
6 mm thick glass must have either a compression of 69 MPa (10000 psi) or an edge
compression of not less than 67 MPa (9700 psi). For it to be considered a safety glass, the
surface compressive strength should exceed 100 MPa (15, 000 Psi). As a result of the
 increased surface strength, the glass breaks into small pieces instead of sharp shards which
can harm a person nearby.
Francois Barthelemy Alfred Royer de la Bastie (1830–1901) of Paris, France is credited
with first developing a method of toughened glass by quenching molten glass in a heated
bath of oil or grease in 1874. Tempered glass is often called “Bastie glass” after de la
Bastie. In industries the, the manufacturing of toughened glass is carried out from annealed
glass by “Thermal Toughened Process”. The glass is placed on a Roller table, taking it to
the Furnace that heats it well above its transition temperature of 564 °C to 620 °C. The
glass is then rapidly cooled with forced air drafts while the inner portion remains free to
flow for a short time. An alternative chemical process is by forcing a surface layer of glass
at least 0.1 mm thick into compression by the “Ion Exchange” of the Sodium ions in the
glass surface by Potassium ions (30 % larger in size than the sodium ions) by immersing
the glass in a potassium nitrate bath. Chemical toughening results in increased strength as
compared to the thermal tempering.
It is due to the compressive surface stresses that the toughened glasses get their increased
surface strength, where, annealed glasses have no internal stress and forms microscopic
cracks on the surface. Tension applied to the glass can crack propagation which, once
begun, concentrates tension at the tip of the crack driving crack propagation at the speed of
sound through the glass. Consequently, annealed glass is fragile and breaks into sharp
pieces. Any cutting or grinding must be done prior to tempering. Cutting, grinding, and
sharp impacts after tempering will cause the glass to fracture.The strain pattern resulting
from toughened can be observed by viewing through an optical polarizer, such as a pair of
polarized sunglasses.

2. MARKET POTENTIAL

The global Tempered glass market was valued over USD 24.5 Billion in 2016 and the
industry is expected to reach a value of USD 30 Billion by 2014. The increasing demand
from the mobile phones accessory industries, construction, and automobile industries along
with increased consumer demand for infrastructure facilities should drive the product
demand.
Increasing demand from the mobile phones accessory industries is due to the protection of
the LCD screen of the Smartphone when they slip from the hands or due to mishandling. In
the Automobile sector, the demand is due to the fit them as the rear and the side window
glasses owing to its superior properties such as safety, durability, thermal shock resistance,
reliability, and tensile strength. The products should be in compliance with OEM standards
which are either sourced from suppliers or original equipment manufacturer. Global
automotive industry may surpass USD 3 trillion by 2024. Europe’s motor vehicles
production was over 18 million units in 2016.
The tempered glass market can be divided into three sectors based on the type, application,
and region. On the basis of type, tempered glass is available as single, double, and triple
pane glasses. These have increasing application in the greenhouse sector as they provide
three to four times more shatter resistance than the annealed glasses which should stimulate
the demand for tempered glass in the market.
On the basis of Application, the market can be divided into Construction, Automobile,
different appliances, such as Gadgets, Refrigerators, etc. Construction application may
register gains close to 5.5 % through the forecast period. It is used for building facades,
glazed doors, partitions, shower enclosures, canopies, and wash basins. Tempered glass
market from home appliances may witness significant gains at over 5 % through 2024.
They can be used in different appliances such as washing machines, microwave ovens,
cookware, and refrigerators. The gadgets application sector should witness a market value
of over USD 2.1 Billion. They are widely used in smartphones, tablets, laptops, and
computers as screen protecting guards. Besides these they are used in furniture sector too
such tabletops, shelves and cabinets and other interior applications. Furniture applications
should witness significant gains up to 2024 owing to increasing demand for innovative
furniture designs for interior applications accompanied with improving lifestyle patterns of
consumers.
On the basis of region, the market can be divided as North American region, European
region, Asia-Pacific region, and the Rest of the World. In the European region the growth
is over 3.5 % through 2024. Among the Asia-Pacific countries, China should exceed a sale
value of USD 4.5 Billion by 2024 owing to its wide application in construction and
automotive sector.
3. INDUSTRIAL SCENERIO

The key players in the tempered glass market are Saint-Gobain, Asahi, NSG, Guardian
Industries Corp, Abrisa Technologies, Fuso, and PPG Industries catering to domestic and
international market.
In India, the major players are Asahi India Pvt. Ltd., FUSO India Pvt. Ltd., Glass Wall
Systems India Pvt. Ltd, Gold Plus Glass Industry Ltd., Gurind India Pvt. Ltd., Piramal
India Pvt. Ltd., Pragati Glass Pvt. Ltd., Saint-Gobain India Pvt. Ltd., Sisecam Flat Glass
India Pvt Ltd., etc.
These manufacturing companies are focusing on regional presence and expanding
businesses by developing strategies to size up production capability and enhancing product
portfolio. Companies are also focusing on Mergers and Acquisitions with regional and
local companies to open new market opportunities and further accelerate Tempered glass
market revenue.

4. PRODUCT DESCRIPTION

4.1 PRODUCT USES

The different uses of Toughened Glass can be listed as follows:
1. Tempered glass is used to top the gas stoves, and also used in other kitchen
appliances such as the microwave and induction cooktop that deal with
great amounts of heat.
2. It is used to make the automotive parts such as the window glass to make
the cars safer.
3. Tempered glass is used in numerous ways in the construction of a house.
Shower doors, bathtub enclosures, sliding doors, windows, skylights, glass
facades, elevators, swimming pools, and glass balcony doors can all be
made of tempered glass.
4. It is used as glass panels in the hockey rinks and other sports arenas.
5. The room dividers of the office building are made from Tempered glass.
6. The display cases and tables in retail stores are made of tempered glass.
 7. The glass railings in the departmental stores, offices, commercial and public
spaces are made from tempered glass for the safety of the people.
8. The thermal strength, heat resistance, and durability of the tempered glass
makes it an ideal candidate to top the Solar panels.

4.2 RAW MATERIAL REQUIREMENT

The raw materials required for the production of the Toughened glass are given as
follows:

Sl. No. Component Percentage

1. Silicon dioxide (Silica) 72 %

2. Boron oxide 12 %

3. Aluminum oxide 7%

4. Potassium oxide 2%

5. Sodium oxide 6%

6. Calcium oxide 1%

Silica is the main component of glass and the main source of silica is Sand. These
raw materials are mostly procured in their mineral form as sand, soda, and
limestone. Besides these some clarifying agents, coloring agents, and glistening
agents are also added to the glass. The addition of Boron trioxide to the glass
allows for a very low thermal co-efficient of expansion. This allows the glass to
resist breakage under extreme temperature conditions. Aluminum oxide is added to
the composition for an added strength. Aluminosilicate glasses are “born strong”. It
makes the glass strong, scratch resistant, and the internal glass strength helps the
scratches from becoming cracks.
4.3 MANUFACTURING PROCESS

The manufacturing of the Toughened glass is as follows:

1. The manufacturing process begins with production of float glass. The float
glass or the flat glass is made by floating molten glass on a bed of molten
tin.
2. The process begins by the batching of raw materials. The main components,
sand, calcium oxide, aluminum oxide, boron trioxide, and soda being
weighed and mixed into batches to which broken glasses (cullet) is added.
The use of cullet reduces the consumption of energy.
3. The batched raw materials pass from a mixing silo to a five-chambered
furnace where they are molten and the temperature in the furnace may reach
upto 1500 °C.
4. The molten glass is then gently “floated” over a refractory spout on to the
mirror-like surface of molten tin at a temperature of about 1000 °C. It forms
a ribbon which is between 5 and 6 mm. by suitably drawing the glass
through a complex process involving roll top machines, ribbon thickness in
the range of 1.9 mm to 19 mm can be achieved. The glass, which is highly
viscous, and the molten tin, which is very fluid, do not mix with each other
and the contact surface between these two materials is perfectly flat, giving
them the term “Flat glass”.
5. After this, the glass is cooled. On leaving the bath of molten tin, the glass
now at a temperature of 600 °C has cooled down sufficiently to pass to pass
to the annealing chamber called “Lehr”. The glass is now hard enough to
passed over rollers and is annealed, which modifies the internal stresses,
enabling it to be cut and worked in a predictable way and ensuring flatness
of the glass. As both surfaces are fire finished, they need no grinding or
polishing.
6. After the glass is annealed in the Lehr, they are cut by Diamond wheels.
The stressed edges are chopped first and then the glass ribbon is cut in sizes
as dictated by the computer.
 Fig.:: Schematic for the manufacture of Float glass

7. After the glass is produced, it is

is then tempered to give it its hardness and
stain resistance.
8. The tempering process can be done chemically as well as thermally but the
chemical tempering process gives a better tempered glass. For the chemical
tempering, the float glass is cut to the des
desired shape.
9. Prior to the tempering process, the cut glass is checked for flaws such as
cracks, bubbles, and inclusions. The presence of these imperfections can be
presence
cause breakage during the tempering process.
10. The glass is washed to remove the dust, dirt, and debris that could interfere
with the tempering process.
11. The main ingredient of the tempering process is Potassium Nitrate which is
heated to about 400 °C to make it a liquid melt. The glass is chemically
hardened by immersing the glass in the molten P otassium Nitrate bath. For
Potassium
lime glass, the immersion time can be upto 16 hours while for the
Soda-lime
Aluminosilicate glass the soaking time is about 4 hours. While the glass is
ion exchange process takes place on the surface of
immersed in the melt, an ion-exchange
ass. The sodium ions are replaced by the potassium ions. This causes
the glass.
the surface to be compressed and the core of the glass to compensate by
stress tension. It makes the glass more strong, mores scratch resistant and
Chemically tempered aluminosilicate glass
even heat resistant up to 250°C. Chemically
can reach a surface compression up to 5 times the values of normal thermal
tempered soda-lime
soda glass.
 Fig.:: Chemical tempering of glass.

12. Alternatively this process can also be carried out by Thermal treatment. The
checked glass pieces travels to a furnace either in batches or in continuous
feed, where they are heated
h °C.
at temperatures over 600 °C
glass undergoes a cooling process.
13. After the heating, the scorching piece of glass
high pressure blasts of cold air from
During the process, the glass receives high-pressure
varying angles for about 3 – 10 seconds. The process called “Quenching”
cools the glass surface much faster than it does the center. Because of this,
th
the interior of the glass always stays in tension while the surface goes into
compression. This combination of stresses is what makes Tempered glass so
strong.
14. Once the glass are produced they are stored as per their sizes and dispatched
as per requirements.
requ

4.4 YIELD OF PRODUCT/PRODUCTION RATIO

The production capacity of a Small or Medium scale Tempered glass

manufacturing 0, 000 sq. feet per annum.
facturing company is around 3, 50, 000 – 4, 00,
5. INDIAN STANDARDS FOR THE PRODUCT

The IS 2553-Part 1 (1990) gives the specification for Toughened safety glass from Float
Glass.

6. PROJECT COMPONENTS

6.1 Land /Civil Work

An area of almost3000 – 4000 square feet would be required to set up Toughened
Glass Manufacturing plant. This space would be required for raw materials storage
mainly, production, packaging, storage of finished goods, and administrative work.
Besides this, an area for the treatment of the wastes should also be provided.
As the cooling process requires water, it is good to choose the manufacturing plant
near any water body.
6.2 Plant & Machinery

The machineries required for the Toughened Glass manufacturing Plant are as
follows:

1. The first requirement is that of an Electric Furnace completed with

refractory lining, thermo-couples, temperature recorders, operating panel
board, oil circuit breaker, temperature controller, etc. Maximum
temperature 1000 – 1500 °C, Material loading capacity is about 1 MT,
Electric supply 400/440 V, 3 phase. This oven can be used to both melt the
raw materials as well as for the tempering of the finished glass.
 Fig.: Electric Furnace

2. A Tin Bath to float the molten glass. Here the glass takes its shape after
being poured from the furnace. The capacity can be upto 100 MT per day
and the glass thickness can be 0.12 – 25 mm.

Fig.: Float glass tin bath

3. Float glass Annealing Lehr. The glass Annealing Lehr ensures controlled
cooling of the glassware that eliminates inner material tension. The Lehr is
equipped with a direct gas heating and a system of maximum/ minimum/
off and by proportional controlled cooling, or with an on/off system.
 Fig.: Annealing Lehr
4. Diamond Wheel Industrial Glass Cutting machine, glass thickness 0.7 – 12
mm, power supply 1 or 3 phase, power consumption is 5 HP.

Fig.: Glass cutting machine

5. Air quenching blower with motor with power consumption of 150 HP to
cool the heated tempered glass quickly.

Fig.: Air quenching blower

6. Vertical grinding machine complete with motor, V-belt, etc. for the
working on the edge of the glass. Power consumption 3 – 5 kW, motor
power consumption is 2 kW.

Fig.: Vertical grinding machine

7. Vertical polishing machine with motor, V-belt, etc. to polish the surface of
the glass. Power source 220 – 440 V/ 50 Hz. Made from stainless steel.

Fig.: Glass polishing machine

8. Rectification machine to detect surface scratch for the float glass. The
scratch speed is around 30 – 40 mm/sec. the power source is either a 220 V/
50 Hz or 110 V/ 60 Hz.

Fig.: Scratch tester for glass

9. Polariscope inspection line with Polaroid sheet, light etc., fortesting the
strain/in the glass. It has a built-in light source specially designed for
analysing and viewing the strains in the glass. The power source is about
110 – 220 V, 50 Hz.

Fig.: Poloriscope
10. Tempered glass cutting machine with a power consumption of around 0.4
kW.

Fig.: tempered glass cutting machine

 11. Water-softening plant, with 5000 LPH capacity, inlet water hardness 250 -
300 ppm. Treated water quality is < 3 ppm. Operated manually and
treatment technique Ion Exchanging.

Fig.: Water softening plant.

6.3 Misc. Assets

The miscellaneous assets include hydraulic equipments for curved glasses,

Blowing boxes and moulds for curved sheets, Edge working machine for edge
arising with motor, starter, grinding wheel, Cutting machine with arm table,
cutting rail and swivel cutting head for shaping, Drying and washing machine
with blower, starter, heater conveyor, roller etc., Compressor, Pumps for water
supply, Indicators/ Recorders for temperature and pressure, Material handling
equipment like hoist, pallet trucks, and fork-lifts to handle the raw materials,
Safety equipments, instrument chart and accessories, cleaning materials of the
plants, furniture, and other electrical equipments.
Machine Unit Price
Electric Furnace 1 20,00,000
Float Glass Tin Bath 1 35,00,000
Annealing Lehr 1 20,00,000
Glass Cutting Machine 1 7,50,000
Air-Quenching Blower 1 35,000
Vertical Grinding Machine 1 1,50,000
Vertical Polishing Machine 1 85,000
Rectification Machine 1 16,000
Polariscope 1 54,500
Tempered Glass Cutting 1 1,25,000
Machine
Water Softening Plant 1 1,40,000
Misc. Assets 2,50,000
Total 91,05,500
GST 16,38,990
Total Amount 1,07,44,790
 6.4 Power Requirement

The machineries in a stubble to pulp and paper manufacturing plant can work
with a three phase AC power supply.The power required by the manufacturing
plant is about 80 - 90 kW.

6.5 Manpower Requirement

The total manpower required for the operation of Toughened Glass plant is
around 50-55.

7. LICENSE & APPROVALS

To start the Toughened Glass manufacturing process the different licenses and registrations
from the different authorities regarding the area and machineries must be obtained initially.
These laws vary from one state to the other. Besides them, the other certificates that must
be obtained are:

1. Registration with the Registrar of Companies (ROC), under the Ministry of Corporate
Affairs, India.
2. A trade license from the local Municipal Body authority.
3. MSME Udyam registration
4. The GST (Goods and Service Tax) registration
5. A“No-objection Certificate” from the Pollution Control Board.
8. SWOT ANALYSIS

Strengths: The major strengths of this industry is the fact that Tempered glass finds
application in many areas such as Gadgets, Automobiles, Furniture, Construction, etc. The
major application sector being the increasing use in the gadgets. With the increasing use of
Smartphones, Tablets, Laptops, etc. the demand for Tempered glass is going to rise more
in future.

Weaknesses:The weakness of the Tempered glass industry is that the glass is Strong yet
very fragile. Ironically, the rapid temperature change that gives tempered glass its
compression strength may also cause it to shatter, seemingly without warning.

Opportunities: With the increasing demand for Gadgets the demand for the Tempered
glass is set to increase higher in future. Along with gadgets, the tempered glass is used in
different other devices such as furniture, automobiles, buildings, and other areas and the
rise in the global population is set to cause higher demand for the product.

Threats: The major threat to the industry is the quality of the product that is produced.
Generally, the different oxides added to the glass can cause a difference in the properties of
the glass which can cause deviations in the market demand.
9. FINANCIALS

COST OF PROJECT
(in Lacs)
PARTICULARS AMOUNT
Land & Building Owned/rented
Plant & Machinery 107.44
Miscellaneous Assets 5.00
Furniture 5.00
Working capital 40.00
Total 157.44

MEANS OF FINANCE

PARTICULARS AMOUNT
Own Contribution @ 25% 39.36
Term Loan @ 75% 88.08
Working Capital (Bank Finance) 30.00
Total 157.44
PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
Liabilities
Capital
Opening Balance 41.19 45.68 52.59 61.81 71.95 83.38
Add:- Own Capital 39.36
Add:- Retained Profit 3.83 10.49 14.91 18.22 23.64 26.74 29.46
Less:- Drawings 2.00 6.00 8.00 9.00 13.50 15.30 17.00

Closing Balance 41.19 45.68 52.59 61.81 71.95 83.38 95.84

Term Loan 81.30 67.75 54.20 40.65 27.10 13.55 -
Working Capital Limit 30.00 30.00 30.00 30.00 30.00 30.00 30.00
Sundry Creditors 9.68 10.96 12.32 13.74 15.25 16.82 18.49
Provisions & Other Liabilities 3.00 7.00 8.40 10.08 12.10 14.52 17.42
TOTAL : 165.17 161.40 157.51 156.28 156.39 158.27 161.75
Assets
Fixed Assets ( Gross) 117.44 117.44 117.44 117.44 117.44 117.44 117.44
Gross Depriciation 17.37 32.15 44.74 55.47 64.60 72.38 79.00
Net Fixed Assets 100.07 85.29 72.70 61.97 52.84 45.06 38.44

Current Assets
Sundry Debtors 29.40 35.47 39.87 44.52 49.43 54.54 59.93
Stock in Hand 30.66 34.75 39.00 43.21 47.58 52.32 57.25
Cash and Bank 1.53 1.90 1.54 1.87 1.64 1.15 0.43
Loans & Advances/Other Current Assets 3.50 4.00 4.40 4.70 4.90 5.20 5.70
TOTAL : 165.17 161.40 157.51 156.28 156.39 158.27 161.75
PROJECTED CASH FLOW STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
SOURCES OF FUND
Own Margin 39.36
Net Profit 3.83 12.23 18.64 23.45 31.34 35.84 39.79
Depriciation & Exp. W/off 17.37 14.79 12.59 10.72 9.13 7.78 6.63
Increase in Cash Credit 30.00 - - - - - -
Increase In Term Loan 88.08 - - - - - -
Increase in Creditors 9.68 1.29 1.36 1.43 1.50 1.58 1.66
Increase in Provisions & Other liabilities 3.00 4.00 1.40 1.68 2.02 2.42 2.90

TOTAL : 191.31 32.30 33.99 37.28 43.99 47.61 50.99

APPLICATION OF FUND
Increase in Fixed Assets 117.44
Increase in Stock 30.66 4.09 4.25 4.21 4.36 4.74 4.93
Increase in Debtors 29.40 6.07 4.41 4.65 4.91 5.12 5.39
Repayment of Term Loan 6.78 13.55 13.55 13.55 13.55 13.55 13.55
Loans & Advances/Other Current Assets 3.50 0.50 0.40 0.30 0.20 0.30 0.50
Drawings 2.00 6.00 8.00 9.00 13.50 15.30 17.00
Taxation - 1.74 3.74 5.24 7.70 9.10 10.34
TOTAL : 189.78 31.94 34.35 36.95 44.22 48.11 51.70

Opening Cash & Bank Balance - 1.53 1.90 1.54 1.87 1.64 1.15
Add : Surplus 1.53 0.36 -0.35 0.33 -0.23 -0.50 -0.72
Closing Cash & Bank Balance 1.53 1.90 1.54 1.87 1.64 1.15 0.43
PROJECTED PROFITABILITY STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
Capacity Utilisation % 50% 55% 60% 65% 70% 75% 80%
SALES
Gross Sale
Toughened Glass 352.80 425.58 478.47 534.28 593.14 654.53 719.15
Total 352.80 425.58 478.47 534.28 593.14 654.53 719.15
COST OF SALES
Raw Material Consumed 193.50 219.24 246.35 274.89 304.92 336.49 369.72
Electricity Expenses 17.85 21.42 25.70 30.84 33.93 37.32 41.05
Depreciation 17.37 14.79 12.59 10.72 9.13 7.78 6.63
Wages & labour 57.36 68.83 82.60 90.86 99.94 109.94 120.93
Repair & maintenance 2.29 7.02 7.89 6.68 5.93 6.55 5.39
Consumables 10.58 12.77 10.77 12.02 13.35 14.73 16.18
Packaging cost 15.88 12.77 14.35 16.03 17.79 19.64 21.57
Cost of Production 314.83 356.83 400.26 442.04 485.00 532.43 581.48
Add: Opening Stock - 20.99 23.79 26.68 29.47 32.33 35.50
Less: Closing Stock 20.99 23.79 26.68 29.47 32.33 35.50 38.77
Cost of Sales 293.84 354.03 397.36 439.26 482.13 529.27 578.21
GROSS PROFIT 58.96 71.55 81.11 95.02 111.01 125.26 140.94
Salary to Staff 24.72 27.19 32.63 39.16 46.99 56.39 67.66
Interest on Term Loan 8.73 8.26 6.77 5.28 3.79 2.30 0.81
Interest on working Capital 3.30 3.30 3.30 3.30 3.30 3.30 3.30
Rent 7.80 7.80 7.80 7.80 7.80 7.80 7.80
Selling & Administration Expenses 10.58 12.77 11.96 16.03 17.79 19.64 21.57
TOTAL 55.13 59.32 62.46 71.56 79.67 89.42 101.14
NET PROFIT 3.83 12.23 18.64 23.45 31.34 35.84 39.79
Taxation 1.74 3.74 5.24 7.70 9.10 10.34
PROFIT (After Tax) 3.83 10.49 14.91 18.22 23.64 26.74 29.46
CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year

CASH ACCRUALS 21.20 25.28 27.50 28.94 32.77 34.51 36.08

Interest on Term Loan 8.73 8.26 6.77 5.28 3.79 2.30 0.81
Total 29.92 33.54 34.27 34.22 36.56 36.81 36.89

REPAYMENT
Instalment of Term Loan 6.78 13.55 13.55 13.55 13.55 13.55 13.55
Interest on Term Loan 8.73 8.26 6.77 5.28 3.79 2.30 0.81

Total 15.50 21.81 20.32 18.83 17.34 15.85 14.36

DEBT SERVICE COVERAGE RATIO 1.93 1.54 1.69 1.82 2.11 2.32 2.57
AVERAGE D.S.C.R. 2.00
COMPUTATION FOR TOUGHENED GLASS
Items to be Assembled
TOUGHENED GLASS
Machine capacity Per day 4,000 Sq ft.
Total working Hours 10 hours
Tortal shifts in a Day 1 Shift
operational capacity per hour 300 Sq ft.
Working days in a month 25 Days
Working days per annum 300
Machine capacity per annum 9,00,000 Sq ft.

Production of Toughened Glass

Production Capacity Sq ft.
1st year 50% 4,50,000
2nd year 55% 4,95,000
3rd year 60% 5,40,000
4th year 65% 5,85,000
5th year 70% 6,30,000
6th year 75% 6,75,000
7th year 80% 7,20,000

Raw material cost

Year Capacity Rate Amount

Utilisation (per Sq ft.) (Rs. in lacs)
1st year 50% 43.00 193.50
2nd year 55% 44.29 219.24
3rd year 60% 45.62 246.35
4th year 65% 46.99 274.89
5th year 70% 48.40 304.92
6th year 75% 49.85 336.49
7th year 80% 51.35 369.72
COMPUTATION OF SALE OF TOUGHENED GLASS

Particulars 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
Op Stock - 30,000 33,000 36,000 39,000 42,000 45,000
Production 4,50,000 4,95,000 5,40,000 5,85,000 6,30,000 6,75,000 7,20,000
Less : Closing Stock (20 Days) 30,000 33,000 36,000 39,000 42,000 45,000 48,000
Net Sale 4,20,000 4,92,000 5,37,000 5,82,000 6,27,000 6,72,000 7,17,000
sale price per Sq ft 84.00 86.50 89.10 91.80 94.60 97.40 100.30
Sales (in Lacs) 352.80 425.58 478.47 534.28 593.14 654.53 719.15

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary
Skilled 17,000 10 1,70,000
Unskilled 14,000 22 3,08,000
Total salary per month 4,78,000
Total annual labour charges (in lacs) 57.36

BREAK UP OF Staff Salary CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary
Helper 8,000 12 96,000
Supervisor 20,000 2 40,000
Accountant 20,000 2 40,000
Administartive staff 15,000 2 30,000
Total salary per month 2,06,000
Total annual Staff charges (in lacs) 24.72

Utility Charges (per month)

Particulars value Description
Power connection required 85 KWH
consumption per day 850 units
Consumption per month 21250 units
Rate per Unit 7 Rs.
power Bill per month 148750 Rs.
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL (in Lacs)
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
Finished Goods
(20 Days) 20.99 23.79 26.68 29.47 32.33 35.50 38.77
Raw Material
(15 Days) 9.68 10.96 12.32 13.74 15.25 16.82 18.49
Closing Stock 30.66 34.75 39.00 43.21 47.58 52.32 57.25

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 30.66
Less : Creditors 9.68
Paid stock 20.99 25% 5.25 75% 15.74
Sundry Debtors 29.40 40% 11.76 60% 17.64
50.39 17.01 33.38
MPBF 33.38
WORKING CAPITAL LIMIT DEMAND ( from Bank) 30.00
COMPUTATION OF DEPRECIATION (in Lacs)
Description Plant & Machinery Miss. Assets Furniture TOTAL
Rate of Depreciation 15.00% 15.00% 10.00%
Opening Balance - - -
Addition 107.44 5.00 5.00 117.44
Total 107.44 5.00 5.00 117.44
Less : Depreciation 16.12 0.75 0.50 17.37
WDV at end of Year 91.32 4.25 4.50 100.07
Additions During The Year - - - -
Total 91.32 4.25 4.50 100.07
Less : Depreciation 13.70 0.64 0.45 14.79
WDV at end of Year 77.63 3.61 4.05 85.29
Additions During The Year - - - -
Total 77.63 3.61 4.05 85.29
Less : Depreciation 11.64 0.54 0.41 12.59
WDV at end of Year 65.98 3.07 3.65 72.70
Additions During The Year - - - -
Total 65.98 3.07 3.65 72.70
Less : Depreciation 9.90 0.46 0.36 10.72
WDV at end of Year 56.08 2.61 3.28 61.97
Additions During The Year - - - -
Total 56.08 2.61 3.28 61.97
Less : Depreciation 8.41 0.39 0.33 9.13
WDV at end of Year 47.67 2.22 2.95 52.84
Additions During The Year - - - -
Total 47.67 2.22 2.95 52.84
Less : Depreciation 7.15 0.33 0.30 7.78
WDV at end of Year 40.52 1.89 2.66 45.06
Additions During The Year - - - -
Total 40.52 1.89 2.66 45.06
Less : Depreciation 6.08 0.28 0.27 6.63
WDV at end of Year 34.44 1.60 2.39 38.44
 REPAYMENT SCHEDULE OF TERM LOAN
Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance -
1st month 88.08 88.08 - - 88.08
2nd month 88.08 - 88.08 0.81 - 88.08
3rd month 88.08 - 88.08 0.81 - 88.08
4th month 88.08 88.08 0.81 - 88.08
5th month 88.08 - 88.08 0.81 - 88.08
6th month 88.08 - 88.08 0.81 - 88.08
7th month 88.08 - 88.08 0.81 1.13 86.95
8th month 86.95 - 86.95 0.80 1.13 85.82
9th month 85.82 - 85.82 0.79 1.13 84.69
10th month 84.69 - 84.69 0.78 1.13 83.56
11th month 83.56 - 83.56 0.77 1.13 82.43
12th month 82.43 - 82.43 0.76 1.13 81.30
8.73 6.78
2nd Opening Balance
1st month 81.30 - 81.30 0.75 1.13 80.18
2nd month 80.18 - 80.18 0.73 1.13 79.05
3rd month 79.05 - 79.05 0.72 1.13 77.92
4th month 77.92 - 77.92 0.71 1.13 76.79
5th month 76.79 - 76.79 0.70 1.13 75.66
6th month 75.66 - 75.66 0.69 1.13 74.53
7th month 74.53 - 74.53 0.68 1.13 73.40
8th month 73.40 - 73.40 0.67 1.13 72.27
9th month 72.27 - 72.27 0.66 1.13 71.14
10th month 71.14 - 71.14 0.65 1.13 70.01
11th month 70.01 - 70.01 0.64 1.13 68.88
12th month 68.88 - 68.88 0.63 1.13 67.75
8.26 13.55
3rd Opening Balance
1st month 67.75 - 67.75 0.62 1.13 66.62
2nd month 66.62 - 66.62 0.61 1.13 65.50
3rd month 65.50 - 65.50 0.60 1.13 64.37
4th month 64.37 - 64.37 0.59 1.13 63.24
5th month 63.24 - 63.24 0.58 1.13 62.11
6th month 62.11 - 62.11 0.57 1.13 60.98
7th month 60.98 - 60.98 0.56 1.13 59.85
8th month 59.85 - 59.85 0.55 1.13 58.72
9th month 58.72 - 58.72 0.54 1.13 57.59
10th month 57.59 - 57.59 0.53 1.13 56.46
11th month 56.46 - 56.46 0.52 1.13 55.33
12th month 55.33 - 55.33 0.51 1.13 54.20
6.77 13.55
4th Opening Balance
1st month 54.20 - 54.20 0.50 1.13 53.07
2nd month 53.07 - 53.07 0.49 1.13 51.94
3rd month 51.94 - 51.94 0.48 1.13 50.82
4th month 50.82 - 50.82 0.47 1.13 49.69
5th month 49.69 - 49.69 0.46 1.13 48.56
6th month 48.56 - 48.56 0.45 1.13 47.43
7th month 47.43 - 47.43 0.43 1.13 46.30
8th month 46.30 - 46.30 0.42 1.13 45.17
9th month 45.17 - 45.17 0.41 1.13 44.04
10th month 44.04 - 44.04 0.40 1.13 42.91
11th month 42.91 - 42.91 0.39 1.13 41.78
12th month 41.78 - 41.78 0.38 1.13 40.65
5.28 13.55
5th Opening Balance
1st month 40.65 - 40.65 0.37 1.13 39.52
2nd month 39.52 - 39.52 0.36 1.13 38.39
3rd month 38.39 - 38.39 0.35 1.13 37.26
4th month 37.26 - 37.26 0.34 1.13 36.14
5th month 36.14 - 36.14 0.33 1.13 35.01
6th month 35.01 - 35.01 0.32 1.13 33.88
7th month 33.88 - 33.88 0.31 1.13 32.75
8th month 32.75 - 32.75 0.30 1.13 31.62
9th month 31.62 - 31.62 0.29 1.13 30.49
10th month 30.49 - 30.49 0.28 1.13 29.36
11th month 29.36 - 29.36 0.27 1.13 28.23
12th month 28.23 - 28.23 0.26 1.13 27.10
3.79 13.55
6th Opening Balance
1st month 27.10 - 27.10 0.25 1.13 25.97
2nd month 25.97 - 25.97 0.24 1.13 24.84
3rd month 24.84 - 24.84 0.23 1.13 23.71
4th month 23.71 - 23.71 0.22 1.13 22.58
5th month 22.58 - 22.58 0.21 1.13 21.46
6th month 21.46 - 21.46 0.20 1.13 20.33
7th month 20.33 - 20.33 0.19 1.13 19.20
8th month 19.20 - 19.20 0.18 1.13 18.07
9th month 18.07 - 18.07 0.17 1.13 16.94
10th month 16.94 - 16.94 0.16 1.13 15.81
11th month 15.81 - 15.81 0.14 1.13 14.68
12th month 14.68 - 14.68 0.13 1.13 13.55
2.30 13.55
7th Opening Balance
1st month 13.55 - 13.55 0.12 1.13 12.42
2nd month 12.42 - 12.42 0.11 1.13 11.29
3rd month 11.29 - 11.29 0.10 1.13 10.16
4th month 10.16 - 10.16 0.09 1.13 9.03
5th month 9.03 - 9.03 0.08 1.13 7.90
6th month 7.90 - 7.90 0.07 1.13 6.78
7th month 6.78 - 6.78 0.06 1.13 5.65
8th month 5.65 - 5.65 0.05 1.13 4.52
9th month 4.52 - 4.52 0.04 1.13 3.39
10th month 3.39 - 3.39 0.03 1.13 2.26
11th month 2.26 - 2.26 0.02 1.13 1.13
12th month 1.13 - 1.13 0.01 1.13 -
0.81 13.55
DOOR TO DOOR 84 MONTHS
MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 78 MONTHS

78
BREAK EVEN POINT ANALYSIS
Year I II III IV V VI VII

Net Sales & Other Income 352.80 425.58 478.47 534.28 593.14 654.53 719.15
Less : Op. WIP Goods - 20.99 23.79 26.68 29.47 32.33 35.50
Add : Cl. WIP Goods 20.99 23.79 26.68 29.47 32.33 35.50 38.77

Total Sales 373.79 428.38 481.36 537.06 596.01 657.69 722.42

Variable & Semi Variable Exp.
Raw Material Consumed 193.50 219.24 246.35 274.89 304.92 336.49 369.72
Electricity Exp/Coal Consumption at 85% 15.17 18.21 21.85 26.22 28.84 31.72 34.90
Wages & Salary at 60% 49.25 57.61 69.14 78.01 88.16 99.79 113.16
Selling & adminstrative Expenses 80% 8.47 10.21 9.57 12.82 14.24 15.71 17.26
Interest on working Capital 3.30 3.30 3.30 3.30 3.30 3.30 3.30
Repair & maintenance 2.29 7.02 7.89 6.68 5.93 6.55 5.39
consumables 10.58 12.77 10.77 12.02 13.35 14.73 16.18
Total Variable & Semi Variable Exp 282.56 328.36 368.86 413.94 458.73 508.29 559.91
Contribution 91.22 100.02 112.50 123.12 137.27 149.40 162.51

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 2.68 3.21 3.86 4.63 5.09 5.60 6.16
Wages & Salary at 40% 32.83 38.41 46.09 52.01 58.77 66.53 75.44
Interest on Term Loan 8.73 8.26 6.77 5.28 3.79 2.30 0.81
Depreciation 17.37 14.79 12.59 10.72 9.13 7.78 6.63
Selling & adminstrative Expenses 20% 2.12 2.55 2.39 3.21 3.56 3.93 4.31
Rent 7.80 7.80 7.80 7.80 7.80 7.80 7.80
Total Fixed Expenses 71.52 75.02 79.50 83.64 88.14 93.93 101.15

Capacity Utilization 50% 55% 60% 65% 70% 75% 80%

OPERATING PROFIT 19.71 25.00 33.00 39.48 49.13 55.47 61.37
BREAK EVEN POINT 39% 41% 42% 44% 45% 47% 50%
BREAK EVEN SALES 293.05 321.32 340.17 364.84 382.69 413.50 449.62
FINANCIAL INDICATORS

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
TURNOVER 352.80 425.58 478.47 534.28 593.14 654.53 719.15
GROSS PROFIT 58.96 71.55 81.11 95.02 111.01 125.26 140.94
G.P. RATIO 16.71% 16.81% 16.95% 17.78% 18.72% 19.14% 19.60%
NET PROFIT 3.83 12.23 18.64 23.45 31.34 35.84 39.79
N.P. RATIO 1.09% 2.87% 3.90% 4.39% 5.28% 5.48% 5.53%
CURRENT ASSETS 65.09 76.11 84.81 94.31 103.55 113.21 123.31
CURRENT LIABILITIES 42.68 47.96 50.72 53.82 57.34 61.34 65.90
CURRENT RATIO 1.53 1.59 1.67 1.75 1.81 1.85 1.87

G.P. RATIO
20.00% 19.60%
19.14%
19.00% 18.72%

17.78%
18.00%
16.81% 16.95%
17.00% 16.71%

16.00%

15.00%
1st year 2nd year 3rd year 4th year 5th year 6th year 7th year

N.P. RATIO
6.00% 5.28% 5.48% 5.53%
4.39%
3.90%
4.00% 2.87%

2.00% 1.09% N.P. RATIO

0.00%
1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
ASSUMPTIONS

 Production Capacity of Toughened Glass Plant is 300 Sq. ft./Hour. First

year, Capacity has been taken @ 50%.
 Working shift of 10 hours per day has been considered.
 Raw Material stock is for 15 days and finished goods Closing Stock has
been taken for 20 days.
 Credit period to Sundry Debtors has been given for 20-25 days.
 Credit period by the Sundry Creditors has been provided for 15-20 days.
 Depreciation and Income tax rates has been taken as per the Income tax
Act,1961.
 Interest on working Capital Loan and Term loan has been taken at 11%.
 A period of 9 years after commercial production has been considered
forachieving full/envisaged capacity.
 Arrangement for labour wages has been made as per the prevailing
marketrates, which may vary from place to place and the minimum wages
fixed bythe concerned authorized from time to time.
 Selling Prices & Raw material costing has been increased by 5% & 5%
respectively in the subsequent years.
 The rental value of the workshop shed and other built up/covered areas
hasbeen taken as per the prevailing market rates, which may vary from place
toplace and time to time.
 The rates quoted in respect of machines, equipment and raw materials
arethose prevailing at the time of preparation of this project profile, and
arelikely to vary from supplier to supplier and place to place.
 This project profile is prepared for guidance, hence, entrepreneurs
areadvised to check all the parameters while intending to put up such unit.
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