PROF. NO.
28
PROJECT PROFILE ON HANDMADE PAPER MANUFACTURING UNIT
1. INTRODUCTION
Handmade paper is the paper made through recycled pulp. It is one of the oldest
technologies of making paper. It has superb strength and texture for artists. Due to its
strength and roughness, it is mostly used as file covers, letter heads & packaging etc.
The hand paper industry is one of the important industries under the village industries
sector. The industry has over 2,970 units producing over Rs.54.57 crore worth of paper
and paper products, providing direct employment to more than 17,000 persons in the
rural areas.
2. MARKET DEMAND
Handmade paper industry manufactures paper such as drawing paper for artists,
permanent document paper, dark coloured card sheets, deckle adged stationery,
exclusive greetings, varieties of fancy decorative wraps, unique carry bags, water mark
paper certificates, filter papers and pads. Insulation paper besides other cultural grades
like covers, duplicating paper and tissue paper. These products have good demand in
the domestic market and find usage in the stationery, greeting card, packaging industry
and have tremendous unexplored potential in export markets.
PRODUCTION TARGETS
Basis of estimation: 300 Working Days in a Year
Single Shift basis
8 hours per shift
Pulp Board/ File Cover Sheet
Quantity (MT) 600
Value (Rs) 6600000
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3. MANUFACTURING PROCESS
Manufacturing Process of Handmade paper is divided into following steps:
a. Preliminary Treatment
b. Beating
c. Sheet Formation
d. Pressing
e. Peeling and drying
f. Removal of Dirt and dust
g. Tub Sizing
h. Calendering
i. Final sorting, Trimming and Packaging
The detailed process would be collected through NRDC or other local manufacturer of
the product.
4. QUALITY CONTROL STANDARDS
Quality of the product must be as per customers demand and specification required for
printing and handling etc.
5. LAND & BUILDING
1. Covered area Sq. Ft. 1000
2. Uncovered area Sq. Ft. 5000
3. Total area Sq. Ft. 6000
4. Whether constructed or Own
Rented
5. If constructed, constructed Rs N.A.
value
6. If Rented, Rental value Rs N.A.
(per month)
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6. MACHINERY AND EQUIPMENT
S.N Description Qty. Value (Rs.)
.
1. Rag Chopper 1 1500000
2. Beater and Washing Drum 1
3. Hydroulic Press 1
4. Vertical Agitator 1
5. Paper lifting Vat. 1
6. Vibrating Screen 1
7. Pulp Pump 1
8. Cutting Machine 1
9. Calender Machine 1
10. Wooden Racks 1
11. Electric Motor & starter 1
12. Sales Tax, Freight & Insurance 150000
etc.
Total 1650000
7. RAW MATERIAL (PER MONTH)
S.N Particulars Quantity (MT) Value (Rs)
.
1. Waste Paper 85 340000
2. Other Consumables & L.S. 60000
Packaging Materials
Total 400000
8. STAFF & LABOUR (PER MONTH)
S.N Particulars Qty Rate Value (Rs)
.
A Administrative and
Supervisory
(i) Manager 1 3000 3000
(ii) Peon/ Chowkidar 1 2000 2000
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B Technical (Skilled-Unskilled)
(i) Skilled Worker 1 3000 3000
(ii) Unskilled Worker 5 2000 10000
Sub-Total 18000
Plus perquisites @ 30% of salaries 5400
TOTAL 23400
1. OTHER EXPENSES (PER MONTH)
1. Rent of Land & Building 0
2. Electricity Charges 12000
3. Fuel Exp. 0
4. Advertisement & Travelling 2500
5. Transport 10000
6. Consumable & stores etc. 5000
7. Potage expenses/ telephones 2500
8. Stationery 1000
9. Repairs & Maintenance’s 1000
Total 34000
2. WORKING CAPITAL (FOR ONE MONTH)
SL.NO. DESCRIPTION AMOUNT(RS)
1 Raw material 400000
2 Salaries & Wages 23400
3 Other Expenses 34000
Total 457400
3. TOTAL CAPITAL INVESTMENT
Building & Other Civil Works -
Machinery & Equipment 1650000
Working capital for one month 457400
Total 2107400
4. COST OF PRODUCTION (PER ANNUM)
Total recurring cost per year 5488800
Depreciation on machinery & 165000
equipment
Interest on total investment @ 10% 210000
Total 5863800
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5. SALES PROCEEDS (PER ANNUM)
S.N. Item Qty (MT) Value (Rs.)
1. Hand Made Paper 600 6600000
(Pulp Board or File
Cover Sheet)
Total 6600000
6. PROFITABILITY (BEFORE INCOME TAX)
1. Annual Gross Profit 736200
2. % of Profit on Sales 11.15%
3. Break Even Analysis
3.1 Annual Fixed Cost 688800
3.2 Annual Sales 6600000
3.3 Annual Variable Cost 4800000
3.4 Break Even Point 38.27%
Break-Even Analysis
(% of Total Production envisaged)
Annual fixed cost X 100
-------------- ---------------- ------------- = %
Annual sales – Annual variable costs
7. Manufactures/ Suppliers of Machinery
1 Workshop, C& B Industry,
KVIC, P.O. Dahanu,
Dist. Thane, Maharashtra
2 Ramest Engineering Co.
Thakurdwara Mandir
G.T.Road, Gaziabad(U.P.)
3 Umesh Industries
G.T.Road. Gaziabad
Uttar Pradesh
4 Bramco Engineers
E-55-56, Industrial Area,
Yamuna Nagar Rly. Station,
Jagadhri
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8. Suppliers of Raw Materials
From Local waster paper merchants of the area.
9. IMPLEMENTATION PERIOD
Proposed Project can commence production with in 6-8 weeks after sanction and first
disbursement of term loan.
10. ASSUMPTION FOR GENERATING PROJECT PROFITABILITY
1 Number of Working Days in a year 300 Days
2 Number of Shifts in a day 1 One
3 Hours in a Shift 8 hours
4 Plant Capacity Consider on Average production capacities
of plant.
5 Raw material Estimates Based upon product Mix
6 Raw Material Availability All districts of MP
7 Depreciation Straight Line Method
8 Manpower According to project Requirement
9 Rent estimate On the basis of current market prize of the
area.
10 Potential Area of Marketing the Related industries of the area.
products
11 If project is funded, term loan 60-80% of Total investment
would be
12 Moratorium Period 6- 12 months
13 Repayment Period 5-7 years
14 Project may be established under PMEGP (GOI) / Tribal Self Employment
Scheme (NSTFDC) or Rani Durgawati
Scheme of MP
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