Hand Sanitizer
Hand Sanitizer
Hand Sanitizer
Of
HAND SANITIZERS
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PROJECT AT A GLANCE
District : xxxxxxx
Pin: xxxxxxx State: xxxxxxxxxx
Mobile xxxxxxx
8 Means of Finance
Term Loan Rs.14.22 Lakhs
KVIC MARGIN MONEY As per Project Eligibility
Own Capital Rs.2.34 Lakhs
Working Capital Rs.6.8 Lakhs
9 Debt Service Coverage Ratio : 2.99
13 Employment : 18 Persons
14 Power Requirement : 25 KW
MEANS OF FINANCE
Particulars Amount
Own Contribution@10% 2.34
Term Loan 14.22
Working Capital 6.80
Total 23.35
General Special
Beneficiary Margin Money 10% 5%
(% of Project Cost)
HAND SANITIZER
PRODUCT INTRODUCTION:
Sanitizers are class of substances that are used to disinfect a given surface
utilizing their chemical composition which in most cases, is basic in nature
which essentially allows the substance to dissolve envelope in case of viruses,
cell membrane in case of bacteria as well as some fungus and cell wall in case
of some fungus, thus killing pathogen.
The Hand Sanitizers are class of sanitizers that are used to disinfect hands as
they are one of the most vulnerable parts of human body which is susceptible
to pick up pathogens. The hand sanitizers use alcohol to develop the basic
nature required to kill pathogens, while components like Vitamin-E and Aloe
Vera Gel are used to add skin benefits to the sanitizer.
USES & MARKET POTENTIAL:
The hand sanitizer market is categorized into Gel, Liquid, Foam and Spray,
among which Gel based segment witnessed a faster growth and the segment is
expected to grow at a higher rate than other segments throughout the forecast
period as well. Gel based segment category held a major part of market share
in 2019 due to higher consumer preference. Additionally, due to the strong
marketing, and endorsements by celebrities of hand sanitizer products, this
category has been witnessing significant growth throughout the historical
period and is anticipated to maintain stable growth during the forecast period
as well.
West India dominated the country’s hand sanitizer market in 2019, and the
region is expected to maintain its dominance during the forecast period. Some
of the major players operating in India hand sanitizer market are Reckitt
Benckiser (India) Ltd., Hindustan Unilever Ltd., Dabur India Ltd., Himalaya
Drug Company Pvt. Ltd., ITC Ltd., and others
INFRASTRUCTURE REQUIREMENT:
1) Land & Building requirement around 1000-1500 sq. Ft.
MANUFACTURING PROCESS:
Various raw material as mentioned above are procured from appropriate
vendors and stored in appropriate pressure vessels based on the class of
chemicals they fall under for example concentrated Isopropyl Alcohol is an
extremely corrosive and hazardous chemical thus requires a class-1 Pressure
vessel, while distilled water is non-corrosive and nonhazardous thus requires
class-3 pressure vessel for storage.
As all the raw materials are chemicals thus a chemical lab quipped with
qualitative and quantitative analysis apparatus and reagents for all raw
material is required so as to ensure proper manufacturing of hand sanitizer.
Therefore before manufacturing process starts, all the raw material are tested
for their composition and concentration.
After verification of all raw materials through chemical lab, the alcohol is
supplied to dilution reactor vessel where distilled water is added to it from
their respective storage pressure vessels in metered quantities using their
respective weighing and metering equipment (Flow Meter is used in case of
most Semi-Automated and Fully Automated Plants).
Once the solution has stabilized, hand sanitizer is obtained from stirrer vessel;
this solution is supplied to filling machine which fills this solution into
sanitizer bottles followed by which caps can be either manually attached or by
utilizing a torque gun with vacuum attachment.
Hand Sanitizer bottles are then sent to label pasting machine which applies
label of its ingredient, life and company information followed by which they
are packaged and sent to sale.
An appropriate sample size from each lot is sent to chemical lab to ensure
composition of product prior to sale.
FINANCIAL ASPECTS:
PROJECTED BALANCE SHEET
PARTICULARS I II III IV V
SOURCES OF FUND
Capital Account
Opening Balance - 3.89 5.67 8.00 12.09
Add: Additions 2.34 - - - -
Add: Net Profit 1.55 4.78 8.33 12.09 16.02
Less: Drawings - 3.00 6.00 8.00 12.00
Closing Balance 3.89 5.67 8.00 12.09 16.11
CC Limit 6.80 6.80 6.80 6.80 6.80
APPLICATION OF FUND
Current Assets
- - - - -
PROJECTED PROFITABILITY STATEMENT
PARTICULARS I II III IV V
A) SALES
Gross Sale 153.83 188.45 222.17 258.15 296.37
B) COST OF SALES
F) Selling & Adm Expenses Exp. 17.54 23.18 27.77 32.01 34.97
PARTICULARS I II III IV V
SOURCES OF FUND
APPLICATION OF FUND
Closing Cash & Bank Balance 2.27 1.40 0.68 1.35 1.62
COMPUTATION OF PRODUCTION OF HAND SANITIZERS
HAND
Year Capacity
SANITIZERS
Utilisation
I 35% 262,500
II 40% 300,000
III 45% 337,500
IV 50% 375,000
V 55% 412,500
PARTICULARS I II III IV V
Finished Goods
(7 Days requirement) 2.96 3.42 3.98 4.60 5.26
Raw Material
(10 Days requirement) 3.47 4.16 4.91 5.73 6.62
Margin 0.76
MPBF 6.83
BREAK UP OF SALARY
Plant &
Description Land Building/shed Machinery Furniture TOTAL
I Opening Balance
Ist Quarter 14.22 - 14.22 0.39 - 14.22
Iind Quarter 14.22 - 14.22 0.39 - 14.22
IIIrd Quarter 14.22 - 14.22 0.39 0.79 13.43
Ivth Quarter 13.43 - 13.43 0.37 0.79 12.64
1.54 1.58
II Opening Balance
Ist Quarter 12.64 - 12.64 0.35 0.79 11.85
Iind Quarter 11.85 - 11.85 0.33 0.79 11.06
IIIrd Quarter 11.06 - 11.06 0.30 0.79 10.27
Ivth Quarter 10.27 10.27 0.28 0.79 9.48
1.26 3.16
III Opening Balance
V Opening Balance
Ist Quarter 3.16 - 3.16 0.09 0.79 2.37
Iind Quarter 2.37 - 2.37 0.07 0.79 1.58
PARTICULARS I II III IV V
REPAYMENT
Repayment of Term Loan 1.58 3.16 3.16 3.16 3.16
Interest on Term Loan 1.54 1.26 0.91 0.56 0.22
Particulars I II III IV V
Sale Price per 200 ML Bottle 60.00 63.00 66.00 69.00 72.00
(B) DG set
No. of Working Days 300 days
No of Working Hours 0.5 Hour per day
Total no of Hour 150
Diesel Consumption per Hour 8
Total Consumption of Diesel 1,200
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 0.78
Add : Lube Cost @15% 0.12
Total 0.90
I 35% 1.89
II 40% 2.16
III 45% 2.43
IV 50% 2.70
V 55% 2.97
BREAK EVEN POINT ANALYSIS
Year I II III IV V
Net Sales & Other Income 153.83 188.45 222.17 258.15 296.37
Less : Op. WIP Goods - 2.96 3.42 3.98 4.60
Add : Cl. WIP Goods 2.96 3.42 3.98 4.60 5.26
PARTICULARS I II III IV V
TURNOVER 153.83 188.45 222.17 258.15 296.37
GROSS PROFIT 29.96 39.41 48.51 57.62 66.62
G.P. RATIO
G.P. RATIO 19.48%
19.48% 20.91%
20.91% 21.84%
21.84% 22.32%
22.32% 22.48%
22.48%
NET PROFIT 1.55 4.78 8.70 12.87 18.12
PAT/SALES
N.P. RATIO RATIO 1.01%
1.0% 2.54%
2.5% 3.92%
3.9% 4.99%
5.0% 6.11%
6.1%
CURRENT ASSETS 12.28 13.37 14.76 17.70 20.42
CURRENT LIABILITIES 9.22 9.71 10.23 10.81 11.43
CURRENT RATIO
CURRENT RATIO 1.33
1.33 1.38
1.38 1.44
1.44 1.64
1.64 1.79
1.79
TERM LOAN 12.64 9.48 6.32 3.16 -
TOTAL NET WORTH 3.89 5.67 8.00 12.09 16.11
DEBT/EQUITY 3.25 1.67 0.79 0.26 -
TOTAL NET WORTH 3.89 5.67 8.00 12.09 16.11
TOTAL OUTSIDE LIABILITIES 21.86 19.19 16.55 13.97 11.43
TOL/TNW
TOL/TNW 5.62
5.62 3.38
3.38 2.07
2.07 1.16
1.16 0.71
0.71
PBDIT 6.17 8.78 12.05 15.63 20.31
INTEREST 2.29 2.01 1.66 1.31 0.96
INTEREST COVERAGE RATIO 2.70 4.37 7.26 11.91 21.06
WDV 13.47 11.48 9.79 8.35 7.12
TERM LOAN 12.64 9.48 6.32 3.16 -
FACR 1.07 1.21 1.55 2.64 -
PLANT & MACHINERY
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