PROJECT PROFILE ON ARECANUT LEAF CUPS & PLATES MANUFACTURING

UNIT

INTRODUCTION

Leaf cups and plates are traditionally made by hand in Indian villages. These
are commonly used for serving food at marriages, religions and social functions. The
laborious craft can now be converted into a machine operation to make these containers
in elegant shapes and sizes. Such cups and plates are made out of plant leaves of beauty,
arecanut sheath, banana etc. These have good dimensional stability and are inexpensive,
hygienic and biodegradable.
MARKET DEMAND

There are more than 30 leaf cup making machines in operation in Coimbatore.
There is a large scope for setting up the arecanut units. Day by day the business scope
has been increase. For avoiding the plastic. The cups and plates are also in large demand
by fast food restaurants, star-hotels, mass feeding and for Prasad am in religious
institutions. PRODUCTION TARGETS Basis of estimation: 300 Working Days in a
Year Single Shift basis 8 hours per shift Leaf cups & Plates Quantity per day we make
600. For year we get 180000 plats we made.

SCOPE OF THE ARECA NUT PLATES

 Can some of the earth conscious people be interested in buying Areca Nut Plates and
bowls,
 It also be cheap and are attractive...
 Also they are easily disposable
 Importantly food tastes better when served in them...
 Those who are keep to reduce global warming
 Eco plates are healthy and hygienic
 Alternative to plastics.
 Can be used for serving food items in Parties, Functions, Hotels, Restaurants, and
Buffets.
 Healthy Hygienic and unique.
 Biodegradable & Eco friendly.
BENEFITS OF ARECANUT

1. Areca Nut farmers (An Extra Income through wasted leaves)

2. Leaf collection Labours.
3. Transporters
4. Entrepreneurs
5. Consumers
This “Wealth from waste concept” is an ongoing process by Eco Green Unit.
We promote self-Help Groups, Unemployed Youth, Entrepreneurs. By Training, Supply of
Raw Material, Technical know-how. And buy back the finished products.
MANUFACTURING PROCESS

The leaf cup machine is a simple pedal operated machine, manually operated with
minimum power consumption. It requires 300 watts of electric power. It can also work
without power by kerosene oil blowlamp. The leaves are washed and dried to retain their
pliability and kept in a polythene bag to avoid drying before use. The leaves are placed on
the lower die pendent, the pedal is pressed down and released after a few seconds. All the
operation like folding, trimming, pressing into shape and drying are done in a single
operation by pressing the pedal lever. The leaf cup, subjected to heating to 150 degree C
for 10 seconds also gets sterilized.
STAFF & LABOUR (PER MONTH)

Administrative and Supervisory

(i) Manager 4500

(ii) (Skilled-Unskilled)
(i) Skilled Worker 3000
(ii) Unskilled Worker 2000
TOTAL 9500

OTHER EXPENSES (PER MONTH)

1. Rent of Land & Building 1000 or more than that,

2. Electricity Charges 250

3. Fuel Exp

4. Advertisement & Travelling 1000

5. Transport 3000

6. Consumable & stores etc. 1000

7. Potage expenses/ telephones 250

8. Repairs & Maintenance’s 250 Total 7000

WORKING CAPITAL (FOR ONE MONTH)

1 Raw material 27,000

2 Salaries & Wages 9,500

3 Other Expenses

TOTAL CAPITAL INVESTMENT

Building & Other Civil Works - Machinery & Equipment 200000 Working capital for
one month 36,500 Total 2,36,500.
COST OF PRODUCTION (PER ANNUM)

Total recurring cost per year 579600 Depreciation on machinery & equipment 10000
Interest on total investment 10% 15000 SALES PROCEEDS (PER ANNUM)

1. Leaf Cups & Plates

 12 size plate Rs=6
 8 size plate Rs=5
 6 size plate Rs=5
 2 size plate Rs=2
Per day working hour is 8 on that time we can make 900 plates all size. To avoid the
waste. Per day we got 3,800. As per month 26,600. For a year we got 3, 19,200. As it
was calculate as approximate value.
PROFITABILITY (BEFORE INCOME TAX)

1. Annual Gross Profit 195400

2. Profit on Sales 24.43%

3. Break Even Analysis

1 Annual Fixed Cost 236500

2 Annual Sales 800000

3 Annual Variable Cost 324000

4 Break Even Point Break-Even Analysis (% of Total Production envisaged)

Annual fixed cost X 100 -------------- ---------------- = % Annual sales – Annual variable costs

IMPLEMENTATION PERIOD

Proposed Project can commence production within 6-8 weeks after sanction and first
disbursement of term loan.

ASSUMPTION FOR GENERATING PROJECT PROFITABILITY

 Number of Working Days in a year 300 Days 2 Number of Shifts in a day 5

 Plant Capacity Consider on Average production capacities of plant.
 Raw material Estimates based upon product Raw Material Availability Forest
districts.
 Depreciation Straight Line Method.
 Manpower According to project Requirement.
 Rent estimate On the basis of current market price of the area.
 Potential Area of marketing the products Households of the area.