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Bottle Caps: 1. Process of Manufacturing

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BOTTLE CAPS

I. INTRODUCTION:
The unit envisages producing plastic caps for bottles and jars by compression moulding. Thermosetting material like PF / UP is used to manufacture bottle caps. A plastic moulding unit to manufacture bottle caps can be started anywhere as there is good demand for bottle caps. The unit can also manufacture other moulded plastic products after assessing the demand for the product

II. MARKET POTENTIAL


Plastic bottle caps find extensive use for bottles used in packaging cosmetics, drugs, chemicals, adhesives, toffees, etc. These caps can with stand corrosive chemicals and are available in attractive colours at low cost. Gradually, the demand is more for packing the products in attractive plastics containers to appeal the customers. Therefore bottle caps would be in growing demand for such containers. A small unit can manufacture the caps with indigenously available machinery and raw material.

III. BASIS AND PRESUMPTIONS:


Presumed the unit will work for 8 hours a day for 300 days in a year and shall utilise 60% of the installed capacity of 850000 nos. of caps per annum

IV. IMPLEMENTATION SCHEDULE:


The unit can be set up in two months time

V. TECHNICAL ASPECTS :
1. Process of Manufacturing: Thermosetting material like PF/UP moulding powder is put into the cavities of pre-heated mould and pressed between the two platens of the press. Hydraulic type compression moulding process is used. The combined effect of heat and pressure cause cross-linking in the material which fills the cavity of the mould and hardens. After a certain time the mould is opened and the mouldings are removed.

2.Quality Specification : Quality and design of the product is as per the customers requirement and the end use of the product. 3.Production Capacity per annum Quantity: 510000 no. Value: Rs.765000 4.Motive Power 3 HP

VI. TOTAL CAPITAL INVESTMENTS


S.No 1 2 Description Fixed Capital Working capital Total cost Value Rs. 87000 54250 141250

VII. MEANS OF FINANCE


1.Promoter's Contribution (5% of total cost) 7063 2.PMRY subsidy (15% of total cost or Rs.7500,whichever is less) 7500 3.Bank loan[total cost-( Promoter's Contribution+ PMRY subsidy) 126687

VIII. FINANCIAL ASPECTS

1. FIXED CAPITAL i)Land & Buildings :500 sft. covered area with a rent of Rs.1250 pm ii) Machinery & Equipment S.No 1 2 3 4 5 6 Description Quantity Value Rs. 60000 15000 3000 6000 2000 1000 87000

Hydraulic Thrmosetting moulding press with ejection - 1 3HP Motor Set of Moulds Hand tools Installation charges Misc. fixed assets Pre-operative expenses Total

2. WORKING CAPITAL i.Staff & Labour per month S.No 1 2 3 Designation Manager Skilled worker Unskilled worker Total No 1 2 2 @ Rs. 1500 1250 1000 Value Rs. 1500 2500 2000 6000

ii)Raw Material (p.m.) S.No 1 Description Moulding powder-thermosetting material Total Quantity 250 kg. Value Rs. 35250 35250

iii. Utilities per month S.No. Description 1 2 Power Water Total Value Rs. 1000 250 1250

Page 22 of 120 iv.Other expenses per month S.No Description 1 2 3 Packing Materials Postage, telephone, stationery Conveyance, transport Total Value Rs. 2500 2000 6000 10500

v.Total working capital per month S.No 1 2 3 4 5 Description Rent Staff and labour Raw materials Utilities Other expenses. Total Value Rs,. 1250 6000 35250 1250 10500 54250

IX. COST OF PRODUCTION PER ANNUM


S.No 1 2 3 Description Total working capital Depreciation Interest Total Value Rs. 651000 8600 21188 680788

X. TURNOVER PER YEAR


S.No 1 Item Caps Total Quantity 51000 nos Rate Rs. 15 Value Rs. 765000 765000

XI. FIXED COST PER YEAR


S.No 1 2 3 4 5 Description Depreciation Interest Rent 40% of salaries & wages 40% of other expenses (utilities + OE) Total Value Rs. 8600 21188 15000 28800 56400 129988

XII. PROFIT ANALYSIS


Net Profit : sale-total cost=765000-680788 =84212 % of Profit on Sale: Profit / Sale x100=[84212/765000]100=11% % of Return on Investment: Profit / (Investment) x 100=84212/141250]100=59.62 Break-Even Analysis : FC / (FC+Profit) x100=129988/129988+84212]100=60.7

XIII. MACHINERY SUPPLIERS & RAW MATERIAL SUPPLIERS


Locally available

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