GOVERNMENT POLYTECHNIC COLLEGE

THOOTHUKUDI- 628 008

DEPARTMENT OF MECHANICAL ENGINEERING
ACADEMIC YEAR 2023 - 2024
BUSINESS PLAN REPORT
FOR
PALM PLATE MANUFACTURING UNIT

Under the Guidance of

Dr. P.MUTHURASU, M.E, MIE, Ph.D.,
Tmt. R. KALPANA, ME,
Thiru. B.RAMESHKUMAR, B.E, MBA,
Submitted by

REG NO NAME
22220694 HARIHARA SUDHAN P

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF

DIPLOMA IN MECHANICAL ENGINEERING OF
STATE BOARD OF TECHNICAL EDUCATION, TAMILNADU.
 GOVERNMENT POLYTECHNIC COLLEGE
THOOTHUKUDI -628 008

BONAFIDE CERTIFICATE

This is to certify that this Business Plan Report entitled

“PALM PLATE MANUFACTURING UNIT” is a Bonafide Record work submitted

by selvan. ___________________________________ Reg No.

____________________________ in the fifth semester Diploma in MECHANICAL

ENGINEERING course during the year 2023 – 2024.

Staff In charge Head of the Department

Thiru.B.RAMESH KUMAR, B.E, MBA Tmt. R.KALPANA, ME,

Submitted for Board Practical Examination held on____________________

Internal Examiner External Examiner

 CONTENTS

 INTRODUCTION
 MANUFACTURING PROCESS
 INSPECTION AND QUALITY CONTROL
 INFRASTRUCTURE
 PRODUCTION CAPACITY & POLLUTION
CONTROL
 FINANCIAL ASPECTS
 SUPPLIERS OF MACHINERY
 INTRODUCTION
This Enterprise is a proposed micro enterprise for
the manufacture of Palm plates. It is a sole proprietary concern.. Now a day the
importance of biodegradable materials is very high since polyethylene wastes poses
severe threat to the universe. The disposable plates and food packing materials
manufactured from easily available areca nut palm leaves is a better substitute for
disposable polythene and paper plates. The Govt. is restricting the use of plastic materials
and hence eco-friendly products are preferred to plastic products. There is an ever
increasing demand for these items. Keeping this in mind, the promoter has ventured this
unit..
 MANUFACTURING PROCESS

Our products are manufactured from fallen dry sheaths of Betel nut trees. The areca
sheath when dried will fall from the tree and it is collected from the farms fresh and used
for making products. These sheaths are available in plenty in the South India region. The
usage of these leaves was started from our ancestors. We are only making them into
attractive shapes to meet the different customer requirements.
INSPECTION AND QUALITY CONTROL
Plant will strictly adhere to the International FDA standards and Indian BIS standards in

the process of manufacturing Palm plate from procuring high quality food grade raw

materials to hygienic methods of packaging.

 INFRA STRUCTURE
a) Power: Total Connected load of power estimated is 3 HP. The entrepreneur has
already confirmed the availability from KSE B.

b) Water: Water is required for soaking, cleaning and general purpose and it is available
in plenty near to the site.

c) Transport: The proposed site is located on the side of road.

d) Labour: A total of 3 workers are required in addition to the promoter. All these
skilled and unskilled workers can be recruited locally.

e) Others: Telephone and Postal facilities are also available nearby.

PRODUCTION CAPACITY & POLLUTION
CONTROL

1. The proposed unit is rated for a production capacity of 31,250 pieces per month on
single shift basis. The expected capacity utilization is 80%, for the 1st and 90%
from the 2nd year onwards.

2. The activity does not produce any pollution.

 FINANCIAL ASPECTS

MACHINERY AND EQUIPMENTS

Sl.No. Item Quantity Price/unit Vat Total cost

1 Machine with die for 10" tray 1 24,000.00 1200.00 25200

2 Machine with die for 8" tray 1 22,000.00 1100.00 23100

Machine with die for 10"

3 1 25,000.00 1250.00 26250
round

4 Machine with die for 9" tray 1 24,000.00 1200.00 25200

5 Machine with die for 8" tray 1 23,000.00 1150.00 24150
Machine with die for 17 cm
6 1 24,000.00 1200.00 25200
square
7 Extra die 1 8,000.00 400.00 8400
Total 10,60,000

PLUMPING ITEMS

Total
Sl.No. Item Quantity Price/unit Vat
cost

Water Tank, Pump set &

1 L 25,000.00 1250 26250
Plumbing works

TOTAL 26250
RAW MATERIAL REQUIREMENTS (PER MONTH)

Value for 1
Sl.No. Item Quantity Rate Value/month
year<strong>
1 Areca nut leaves 10,000 0.5 5000 60000
Total 5000.00 60000.00
Total Raw materials
5000.00 60000.00
required

WAGES AND SALARIES

Sl..No. Description No allowance Salary Total

1 Proprietor cum Manager 1 8000.00 8000.00 96000.00
2 skilled labour 2 6000.00 12000.00 144000.00
Total 20000.00 240000.00
Add 20% benefits 4000.00 48000.00
Total 3 24000.00 288000.00
UTILITIES & CONTINGENT (PER MONTH):

1. Power charges : 500

2. Rent : 3000

3. Travel exp / Transport : 1000

4. Repairs and Maintenance : 10000

5. Insurance : 2000

6. Telephone charges : 800

7. Stationary and postage : 200

8. Miscellaneous expenses : 2000

Sub Total : 18500

TOTAL WORKING CAPITAL

Sl.No Particulars No. of days Working Capital

1 Raw material 45 14,400.00

2 Utilities and contingencies 30 9,408.00

3 WIP & Finished goods 14 18,816.00

4 Sundry debtors 7 4,300.00

Total 46924
TOTAL CAPITAL

1. Fixed Capital (V) : 283750.00

2. Working Capital (Vl) : 47000.00

Total Capital : 330750.00

Sources of Funds :-

1. Own Capital Working Capital: 14,400.00

2. Loan from Bank

a) Term Loan (75% of F.C) : 212812.50

b) Working Capital Loan (75 %) : 35250.00

COST OF PRODUCTION PER ANNUM

1. Total recurring expenditure per annum

(a) Raw materials----60000.00

(b) Wages and salaries-------------288000.00

(c). Utilities and contingencies-----84000.00

2. Depreciation on building if any @ 5%:5000.00

3. Depreciation on machinery and equipment 10% : 15750.00

4. Depreciation of office equipment 20% : 0.00

5. Interest on bank loan @ 14%..... : 34729.00

Total:487479.00
TURNOVER PER ANNUM

Sl No. Products Qty Selling price Value Per Month

1 Palm plates 29000 2.00 58000.00

Total 58000.00

Total Sales revenue per annum

COST OF PRODUCTION PER MONTH:

Sl. No. Particulars Amount

1 Raw Materials 5,000.00

2 Salary/Wages 24,000.00

3 Utilities 7,000.00

4 Interest on Borrowings @ 14% pa. 2,894.08

5 Depreciation on Building @ 5% pa. 416.67

6 Depreciation On Machinery @ 10% Pa. 1312.50

7 Miscellaneous Selling Expenses 0.00

Total 40,623.25

Sales receipt per month 58,000.00

PROFIT

Profit per Year:Cost of production per year - sales recipt per year 208521.00

Profit per month:17376.75

Tax 30 %:62556.00

Net Profit per Year:145965

Break Even Point:Fixed Cost x 100/(Sales- Variable Cost)

Fixed cost:104479.00

Variable Cost:378000.00

BEP in %ge:32.86

Debt Service Coverage Ratio:(Net Profit+ Depreciation)

---------------------------
(Loan repayment + Interest on Bank Loan)

ie, DSCR:1.92

(b) Net Profit Ratio:-------Net Profit*100

---------------------------=20.97
Annual Turnover

RATE OF RETURN ON TOTAL INVESTMENT:---------Net Profit*100

-------------------------------------------

Total Investment

44.13
 SUPPLIERS OF MACHINERY

1. Magnus coimbature
Mobile : +91 9944422522
: +91 95885559502
Hydraulic based Automatic machine and Flywheel type Manual machine.