Computer Sambrani 73236v

COMPUTER SAMBRANI (DHOOP) A.

INTRODUCTION

Computer sambrani is an essential item used by all people for religious purpose and it has become a practice to burn dhoop in houses, temples, mosques, churches to spread fragrance and to create a spiritual atmosphere for work ship. Dhoop is mainly used by Hindus to worship various deities in temple and in houses. The largest consumption of dhoop in India is only for worship. B.

PRODUCT USES

The dhoop is mainly used for religious purposes and to keep the atmosphere spread with fragrance and to deoderise the surroundings. C.

MARKET POTENTIAL

The demand for Sambrani (Dhoop) has been increasing with the improvement in general standard of living of the people. With innovative designs and aroma of dhoop available in the market, the customers are trying with various types of products. D.

TECHNICAL ASPECTS

1.

Installed capacity

The installed capacity of the unit is 666 boxes of dhoop per day. On this basis the annual installed capacity is 2,00,000 boxes per annum. Each box contains 24 pieces of dhoop. 2.

Plant and Machinery

Two cylinder hydraulic operated Ready Sambrani making semi automatic m/c. – 1 No Vertical Drum type beater model mixing machine with gear box & motor -- 1 No.

1

3.

Manufacturing Process

The process of manufacturing the dhoop involves the following sequence of operations.

-

Mixing of ingredients required for dhoop by using mixing m/c.

-

Feeding to Semi-automatic machine fitted with dies.

-

Operating machine and taking production stroke by stroke

-

Drying & packing in PP cover along with steel plate (stand) packed in box.

4.

Raw Materials

The raw materials required for manufacturing dhoop are the following.

5.

•

Nice Charcoal

•

Saw Dust,

•

Jiggit,

•

T.T Powder,

•

Benzoene oil (No.1 oil)

•

Sambrani.

Land & Building

A building area of 300 sqft. on rental basis is sufficient for starting the unit. Rent assumed Rs.2400, advance Rs.24,000.

6.

Utilities

Power: The unit requires a power load of 5 HP to operate the machinery.

Water: Water requirement for washing and human consumption.

2

Man Power: Power: Category

Nos.

Monthly

Total

Machine Operator

2

3000

6000

Packing Assistants

2

2500

5000 11000 11000

7.

Add: 20% benefits

2200

Total

13200 13200

Implementation Schedule

The project can be implemented within 2 months period after financial arrangements are ready. 8.

ASSUMPTIONS

− Installed capacity is 16000 pieces per day (666.66 boxes per day) 200000 boxes per annum. Each box contains 20 pieces. Machine capacity is 50 piece per stroke 40 strokes per hours, 8 hours per day. − The selling price is assumed at Rs.7.50 per box. − Raw material cost is Rs.3.85 per box. The typical material mix is as follows. Cost of Raw Material Per Batch of 65 boxes (1560 pieces) Qty.

Rate

Value

Nice Charoal

2 Kg.

10.00

20.00

Saw Dust

2 kg.

7.00

14.00

Jiggit

500 gms.

45.00

22.50

T.T.Powder

2 kg.

42.00

84.00

Benzoene Oil

100 ml

550.00

55.00

Sambrani

250 gms.

95.00

23.75

YY.

100 gms.

310.00

31.00 250.25

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− Packing material Rs.1.00 per box (Box Rs.0.80, steel plate 0.10, PP cover Rs.0.10)

− Power charges at 100% is Rs.24000 per month. − Labour Salaries is estimated at Rs.11000 per month for 2 labourers.. − Repairs & Maintenance is Rs.500 per month. − Depreciation is calculated on WDV method. − Selling, General & . Expenses is calculated at Rs.5000 per month. − Interest on Term Loan is calculated at 12% per annum − Interest on Working capital is not calculated as the working funds is proposed to be met out of promoters fund.

− Income tax is provided at 33.99% on taxable income. LIST OF MACHINERY SUPPLIERS

1.

G-Tech Engineering,, No.3, 2nd Street, Opp: Textool, Ganapathy. Coimbatore 641 006.

2.

Naveenchandra & Co., No.284, Lighi Chetty Street, Chennai 600 001

LIST OF RAW MATERIAL SUPPLIERS Chemical Dealers located in Nyniappa Naicken street & Govindapa Naicken Street, Chennai.

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FINANCIAL ASPECTS Rs.lakhs

1. COST OF PROJECT Building (Advance)

0.24

Plant & Machinery

2.00

Electrical

0.10

Pre-Operative expenses

0.20

Margin for WC

0.38 2.92

2. MEANS OF FINANCE Capital

1.42

Term Loan

1.50

Total

2.92

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS Years

1

Installed Capacity (No. of Boxes)

2

3

200000

200000

200000

60%

70%

80%

Production/Sales (No. of Boxes)

120000

140000

160000

Selling Price

Rs.7.50 per boxe

Utilisation

Sales Value (Rs.lakhs)

9.00

10.50

12.00

Raw Materials

4.62

5.39

6.16

Packing Materials

1.20

1.40

1.60

Power

0.27

0.32

0.36

Wages & Salaries

1.58

1.66

1.74

Repairs & Maintenance

0.06

0.07

0.08

Depreciation

0.50

0.38

0.28

Cost of Production

8.23

9.22

10.22

Selling, , & General expenses

0.72

0.76

0.80

Interest on Term Loan

0.18

0.16

0.11

Interest on Working Capital

0.00

0.00

0.00

Total

9.13

10.14

11.13

-0.13

0.36

0.87

Profit Before Tax

5

Provision for tax

0.00

0.00

0.00

Profit After Tax

-0.13

0.36

0.87

Add: Depreciation

0.50

0.38

0.28

Cash Accruals

0.37

0.74

1.15

4. WORKING CAPITAL: Months

Values

%

Consumptions

Margin

Bank

Amount

Finance

Raw Materials

0.50

0.19

100%

0.19

0.00

Finished goods

0.25

0.17

100%

0.17

0.00

Expenses

1.00

0.02

100%

0.02

0.00

0.38

0.00

0.38 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax

0.87

=

Sales Profit before Interest and Tax

0.98

=

Total Investment Profit after Tax

34%

2.92 0.87

=

Promoters Capital

7%

12.00

61%

1.42

7. BREAK EVEN LEVEL Fixed Cost (FC):

Rs.lakhs

Wages & Salaries

1.74

Repairs & Maintenance

0.08

Depreciation

0.28

. & General expenses

0.80

Interest on TL

0.11 3.01

Profit Before Tax (P) BEL =

FC x 100 FC +P

0.87 =

3.01 3.88 62%

6

x

80 100

of installed capacity

x

100

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