Profile No.

: 44 NIC Code: 32507

OPHTHALMIC LENS GRINDNG

1. INTRODUCTION:

The people of all age groups use sunglasses as an aid to protect eyes against glare or wind
and also as a fashion wear. The present younger generations is using these glasses mainly
as fashion in different colors and varieties. The sunglasses are mostly manufactured in plane
without power in various sizes, colors and shades. Photo chromatic glasses are the latest
introduction in the range of sunglasses in the country. These are special variety of glasses
with the characteristics that when the sun light strikes on them the invisible micro-crystals of
silver halides inside the glass automatically get darker and imparts color and shade to the
glass and in normal indoor light, the glasses revert to its colorless clear transparency. These
glasses also protect eyes from UV rays and are useful both as sunglasses and reading
glasses.

2. PRODUCT & ITS APPLICATION:

Ophthalmic lenses are manufactured out of ophthalmic rough glass blanks. There are
different types of ophthalmic lenses such as purely spherical, cylindrical bifocal and fused
bifocal as well as sunglasses etc. These spectacle lenses serve as an aid to precious human
eyes for better and comfortable vision. They protect and restore the normal eyesight of
persons. Sunglasses are used for protect of eyes against glare, second wind and also
become a fashion wear. Fused bifocal lens serve dual purpose i.e. for distance and near
vision in in one spectacle and thus convenient to wear. Fused bifocal lenses are not only
scientifically perfect in having spherical centre with reading segment but also advantageous
to cut and fit into different shapes and sizes of spectacle frames.
 3. DESIRED QUALIFICATIONS FOR PROMOTER:

Graduate in any discipline.

4. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

There is wide spread use of sunglasses for eye care apart from the style and fashion. The
need of powered glasses is felt after the age of forty. The demand for sunglasses/ophthalmic
glasses is increasing day-by-day to produce ophthalmic lenses as per doctor’s prescription.
There is a good scope for setting up of new units with modern machinery in different parts
of the country, particularly in the urban and semi-urban areas, where there is immediate
demand for the product.

5. RAW MATERIAL REQUIREMENTS:

The major raw materials required for the project are Ohotochromic glass blanks, i.e.
(photogrey, photogrey-extra, photobrown and photosun) of 60 mm to 65 mm diameter of
2.8 mm to 5 mm thickness. Colored glass blanks. Different shades i.e. SP2, SP4 and SP10 of
55 to 65 mm diameter and 3.00 mm to 5.00 mm thickness. Abrasive and polishing materials,
compounds, blocking alloy and cleaning materials, chemical and other allied materials,
packing materials.

6. MANUFACTURING PROCESS:

Glass blanks of particular diameter and thickness are selected on the basis of power to be
given to a lens. Glass blanks are first blocked with the help of surface blocker which is latest
attachment developed for blocking purposes. After blocking the surfaces are ground by
means of Diamond Curve Generator. After grinding and smoothing, the surface is polished
with the help of fixing felt cloth and using polishing material (cerium oxide) on fully
automatic machines. The polished glass blanks are then de-blocked in alloy reclaim tank that
is a compact unit for de-blocking of lenses. The process is further repeated for grinding and
polishing of the second surface of the blanks. Lenses are then cleaned and tested for
accuracy and perfection. Though the process of grinding and polishing is simple, it is quite
sophisticated in practice with rigid quality control measures at each stage of manufacture.

7. MANPOWER REQUIREMENT:

The enterprise requires 9 employees as detailed below:

Sr. No. Designation of Salary Monthly

Employees per Salary ₹ Number of employees required
person

Year-1 Year-2 Year-3 Year-4 Year-5

1 Machine Operators 12,000 12000 1 1 1 1 1

2 Helpers 8,000 24000 3 3 4 4 5

1 Production supervisor 15,000 15000 1 1 1 1 1

2 Accounts/Stores Asst 12,500 12500 1 1 1 1 1

3 Office Boy 9,000 9000 1 1 1 1 1

Total 72500 7 7 8 8 9

8. IMPLEMENTATION SCHEDULE:

The project can be implemented in 2 months’ time as detailed below:

Sr. No. Activity Time Required

(in months)
1 Acquisition of premises 1.00
2 Construction (if applicable) 0.00
3 Procurement & installation of Plant & Machinery 1.00
4 Arrangement of Finance 2.00
5 Recruitment of required manpower 1.00
Total time required (some activities shall run concurrently) 2.00
 9. COST OF PROJECT:

The project shall cost ₹ 13.565 lacs as detailed below:

Sr. No. Particulars ₹ in Lacs

1 Land 0

2 Building 0

3 Plant & Machinery 325000

4 Furniture, Electrical Installations 32500

Other Assets including Preliminary / Pre-operative

5 39000
expenses

6 Margin for Working Capital 960000

Total 1356500

10. MEANS OF FINANCE:

Bank term loans are assumed @ 75 % of fixed assets. The proposed funding pattern
is as under:
Sr. No. Particulars ₹ in Lacs

1 Promoter's contribution 3.39125

2 Bank Finance 10.17375

Total 13.56500

11. WORKING CAPITAL CALCULATION:

The project requires working capital of ₹ 4.80 lacs as detailed below:

Sr. No. Particulars Gross Amt Margin % Margin Amt Bank Finance

1 Inventories 320000 0.25 80000 240000

2 Receivables 320000 0.25 80000 240000

3 Overheads 320000 100% 320000 0

4 Creditors - 0 0

Total 960000 480000 480000

 12. LIST OF MACHINERY REQUIRED:

A detail of important machinery is given below: Power Requirement: 5 HP

Value
Sr. No. Particulars UOM Qtty Rate (₹)
(₹ in Lacs)
Plant & Machinery / equipments
a) Main Machinery
i. Spherical Diamond Curve Nos 1 75000 0.75
Generator with motor and
pump on three phase
ii. Nos 2 50000 1.00
440 volts, 1 HP on AC
supply and switch
Automatic two spindle spherical
machine with feeding pump
iii. to each spindles for 5 0.50
smoothing with switch
and motors of 1 HP each and timer
b) Ancillary machinery
Automatic two spindle spherical
machine with feeding pump to each
i. Nos 1.00 1.00
spindle for polishing with motor and 1
HP motor of each Surface blocker.
sub-total Plant & Machinery 03.25
Furniture / Electrical installations
a) Office furniture LS 1 20000 0.2
b) Stores Almirah LS 1 30,000 0.3
c) Computer & Printer L. S. 1,00,000 32499.5
sub total 32500
Other Assets
a) preliminary and preoperative 39000
sub-total Other Assets 39000
Total 396500
 13. PROFITABILITY CALCULATIONS:

Sr. No. Particulars UOM Year-1 Year-2 Year-3 Year-4 Year-5

1 Capacity Utilization % 60% 70% 80% 90% 100%

2 Sales ₹. In Lacs 2304000 2688000 3072000 3456000 3840000

Raw Materials & Other

3 ₹. In Lacs 1371600 1600200 1828800 2057400 2286000
direct inputs

4 Gross Margin ₹. In Lacs 932400 1087800 1243200 1398600 1554000

5 Overheads except interest ₹. In Lacs 767200 815150 911050 939820 959000

6 Interest ₹. In Lacs 101737.5 101737.5 67825 50868.75 40695

7 Depreciation ₹. In Lacs 227500 162500 113750 81250 73125

8 Net Profit before tax ₹. In Lacs -164037.5 8412.5 150575 326661.25 481180

14. BREAKEVEN ANALYSIS:

The project shall reach cash break-even at 64.33 % of projected capacity as detailed
below:
Sr. No. Particulars UOM Value

1 Sales at full capacity ₹. In Lacs 3840000

2 Variable costs ₹. In Lacs 2286000

3 Fixed costs incl. interest ₹. In Lacs 999695

4 BEP = FC/(SR-VC) x 100 = % of capacity 64.33%