Professional Documents
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PRODUCT CODE
: NA
PRODUCTION CAPACITY
(Per Annum)
: May, 2014
PREPARED BY
2. MARKET POTENTIAL
The demand for adjustable beds is increasing day by day due to the following
reasons.
i.
ii.
The Govt. is encouraging new hospitals & nursing homes in private sectors in
order to increase treatment facilities in therefore likely to be a steady increase in the
demand for hospital furniture. However, the growth rate is expected to be more than
10% per year and as such it may be ideal for the existing steel furniture manufacturer
units to take up this activity for not only as diversification but also better capacity
utilization by adding some manufacturing facilities in these units.
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This project profile is based on 8 working hours a day and 25 days in a month
and the break even efficiency has been calculated on 75% capacity utilization
basis.
ii.
iii.
The normal wages and salaries being paid in the industry to various grades of
personnel have been considered and also the provision of minimum wages
has been taken care of.
iv.
Rate of interest for both fixed & working capital have been taken as 14% P.A.
v.
The payback period for finance to the financial institutions may be about 8/10
years in case of term loan. The working capital loan may however be in a
shape of rolling/limit based capital.
4. IMPLEMENTATION SCHEDULE
Implementation of the project involve various activities like market surveys
and tie-ups, procurement of know-how, arrangement of premises/land, building,
preparation of project report, registration, financing purchase of machines,
commissioning of project, recruitment of staff and training, arrangement of power,
procurement of raw materials, packing material, trial production etc. in order to
implement the project efficiently and in the shortest period there is a need to initiate
many activities simultaneously as far as possible. This will not only cut the slack
period but also will give quick results and be cost effective. It is advised to follow
PERT/CPM/NET WORK analysis technique for implementation along with their
estimated time requirement is given below.
S.No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Activity
Market survey
Procurement of know-how/experts
Arrangement of premises
Obtaining quotations and preparation of project report.
Registration and financing.
Recruitment of personnel and training.
Obtaining power connection.
Procurement of machines and equipments.
Installation and electrification of machinery.
Procurement of raw materials, consumables, packing
materials etc.
Product development/trial production
Commercial production
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Estimated
period required
15-20 days
30 days
30-45 days
15-20 days
45-60 days
30-45 days
15-30 days
45-60 days
20-30 days
5-10 days
5-10 days
5-10 days
Mechanical Division
5. TECHNICAL ASPECTS
5.1. Process of Manufacturing
The basic operations involved in the manufacturing of adjustable beds are as
follows:
1. Cutting & bending of pipes
2. Cutting of MS angles, MS Roads of required sizes
3. Cutting of MS Sheets
4. Welding & machining work
5. Grinding
6. Assembling of elevating mechanism
7. Painting & baking
6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building: A built up area of 200 Sq. Mtr on rental basis; Rs. 10,000/- per
month.
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3 Nos.
Rate
(Rs.)
30,000/-
Amount
(Rs.)
90,000/-
Name of machine
Qty.
2.
1 Set
25,000/-
25,000/-
3.
1 Set
20,000/-
20,000/-
4.
1 No.
25,000/-
25,000/-
1 No.
20,000/-
20,000/-
5.
1 No.
10,000/-
10,000/-
6.
1 No.
20,000/-
20,000/-
7.
1 No.
10,000/-
10,000/-
8.
1 No.
1,25,000/-
1,25,000/-
9.
2 Nos.
10,000/-
20,000/-
10.
L.S
1,00,000/-
11.
1 No.
20,000/-
20,000/-
12.
1 No.
25,000/-
25,000/-
13.
LS
--
25,000/-
14.
LS
--
1,00,000/-
15.
16.
17.
Pre-operative expenses
L.S
51,000/1,00,000/Total
50,000/8,36,000/-
Staff
Supervisor
No.
1 No.
Rate (Rs.)
15,000/-
Amount (Rs.)
15,000/-
2.
Clerk/accountant
1No.
7,500/-
7,500/-
3.
Peon/chowkidar
1 No.
6,000/-
6,000/-
4.
Skilled worker
2 Nos.
10,000/-
20,000/-
5.
Semi-skilled worker
2 Nos.
7,500/-
15,000/-
6.
Helpers
2 Nos.
6,000/-
12,000/-
15,100/90,600/-
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Mechanical Division
2.
3.
4.
5.
6.
7.
Amount (Rs.)
55,000/-
6.2.3. Utilities
Power (L.S) Rs. 12,000/Water (L.S) Rs. 3,000/Total
Rs. 15,000/-
Heads
Rent
Postage & stationery (L.S.)
Telephone (L.S)
Repair & Maintenance (L.S.)
Consumable Stores (L.S)
Transport Charges (L.S)
Advertisement & publicity (L.S.)
Insurance (L.S.)
Sales Expenses (L.S.)
Total
Amount (Rs.)
10,000/5,000/2,000/5,000/5,000/10,000/5,000/2,000/10,000/54,000/-
Amount (Rs.)
90,500/4,44,000/15,000/54,000/6,03,600/-
Rs. 18,10,800/-132-
1,05,000/1,05,000/70,000/60,000/24,000/25,000/4,44,000/-
Rs. 8,36,000
Rs. 18,10,800
Total
Rs. 26,46,800/-
7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
i.
ii.
iii.
iv.
v.
Recurring Expenses
Depreciation on machinery @ 10%
Depreciation on jigs & fixtures @ 20%
Depreciation on office equipment furniture @ 20%
Interest on total capital @ 14%
Total
Say
By sale of 250 Nos. Fowlers hospital beds @ 24,000/- Rs. 60,00,000/By sale of 250 Nos. General purposes hospital beds @12,000 Rs. 30,00,000/By sale of scrap (L.S)
Rs. 1,00,000/Total
13,90,000
X 100
91,00,000
= 15.3 %
13,90,000
X 100
26,46,800
= 52.5 %
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Rs. 91,00,000/-
Mechanical Division
1,20,000/3,70,552/96,000/4,34,880/2,01,600/12,47,032/-
B.E.P
=
Fixed Cost
X 100
Fixed Cost + Net Profit
12,47,032
X 100
12,47,032 + 13,90,000
= 47.3 %
M/s. Kwality Machine Tools, No. 25, JC, Road , Near VSL Building, Bangalore
2.
3.
4.
5.
M/s. Batliboi Engineers Pvt. Ltd., 99/2, 99/3, N.R. Road, Bangalore
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