PROF. NO.
18
PROJECT PROFILE ON LEAF CUPS & PLATES MANUFACTURING UNIT
1. INTRODUCTION
Leaf cups and plates are traditionally made by hand in Indian villages. These are
commonly used for serving food at marriages, religions and social functions. The
laborious craft can now be converted into a machine operation to make these
containers in elegant shapes and sizes. Such cups and plates are made out of plant
leaves of beautia, arecanut sheath, banana etc. These have good dimensional stability
and are inexpensive, hygienic and biodegradable.
2. MARKET DEMAND
There are more than 5,000 leaf cup making machines in operation in U.P., Bihar, M.P.,
Jharkhand, Himachal Pradesh, Gujarat, Maharashtra, A.P., Karnataka. There is a large
scope for setting up cottage scale units. The cups and plates are also in large demand
by hawkers, fast food restaurants, star-hotels, mass feeding and for prasadam in
religious institutions.
PRODUCTION TARGETS
Basis of estimation: 300 Working Days in a Year
Single Shift basis
8 hours per shift
Leaf cups & Plates
Quantity (Thousand Nos) 40000
Value (Rs) 800000
3. MANUFACTURING PROCESS
The leaf cup machine is a simple pedal operated machine, manually operated with
minimum power consumption. It requires 300 watts of electric power. It can also work
without power by kerosene oil blowlamp. The leaves are washed and dried to retain
their pliability and kept in a polythene bag to avoid drying before use.
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The leaves are placed on the lower die platten, the pedal is pressed down and released
after a few seconds. All the operation like folding, trimming, pressing into shape and
drying are done in a single operation by pressing the pedal lever. The leaf cup,
subjected to heating to 150 degree C for 10 seconds also gets sterilized.
4. QUALITY CONTROL STANDARDS
Quality of the product must be as per customers demand.
5. LAND & BUILDING
1. Covered area Sq. Ft. 500
2. Uncovered area Sq. Ft. 500
3. Total area Sq. Ft. 1000
4. Whether constructed or Rented
Rented
5. If constructed, constructed Rs N.A.
value
6. If Rented, Rental value Rs 1000
(per month)
6. MACHINERY AND EQUIPMENT
S.N Description Qty. Value (Rs.)
.
1. Leaf cup and plate making 4 95000
machine lever on bearing
2. Dies for cups & Plates 15 sets
3. Blow lamp 5
4. Hand Tools 1
5. Sales Tax, Freight & Insurance 5000
etc.
Total 100000
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7. RAW MATERIAL (PER MONTH)
S.N Particulars Quantity (Kg) Value (Rs)
.
1. Chholla Leaves L.S. 25000
2. Packaging Material 2000
Total 27000
8. STAFF & LABOUR (PER MONTH)
S.N Particulars Qty Rate Value (Rs)
.
A Administrative and
Supervisory
(i) Manager
(ii) Peon/ Chowkidar
B Technical (Skilled-Unskilled)
(i) Skilled Worker 1 3000 3000
(ii) Unskilled Worker 4 2000 8000
Sub-Total 11000
Plus perquisites @ 30% of salaries 3300
TOTAL 14300
9. OTHER EXPENSES (PER MONTH)
1. Rent of Land & Building 1000
2. Electricity Charges 250
3. Fuel Exp. 0
4. Advertisement & Travelling 1000
5. Transport 3000
6. Consumable & stores etc. 1000
7. Potage expenses/ telephones 250
8. Stationery 250
9. Repairs & Maintenance’s 250
Total 7000
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10. WORKING CAPITAL (FOR ONE MONTH)
SL.NO. DESCRIPTION AMOUNT(RS)
1 Raw material 27000
2 Salaries & Wages 14300
3 Other Expenses 7000
Total 48300
11. TOTAL CAPITAL INVESTMENT
Building & Other Civil Works -
Machinery & Equipment 100000
Working capital for one month 48300
Total 148300
12. COST OF PRODUCTION (PER ANNUM)
Total recurring cost per year 579600
Depreciation on machinery & 10000
equipment
Interest on total investment @ 10% 15000
Total 604600
13. SALES PROCEEDS (PER ANNUM)
S.N. Item Qty (Kg) Value (Rs.)
1. Leaf Cups & Plates 40000 800000
Total 800000
14. PROFITABILITY (BEFORE INCOME TAX)
1. Annual Gross Profit 195400
2. % of Profit on Sales 24.43%
3. Break Even Analysis
3.1 Annual Fixed Cost 255600
3.2 Annual Sales 800000
3.3 Annual Variable Cost 324000
3.4 Break Even Point 53.70%
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Break-Even Analysis
(% of Total Production envisaged)
Annual fixed cost X 100
-------------- ---------------- ------------- = %
Annual sales – Annual variable costs
15. Manufactures/ Suppliers of Machinery
1 Huma Traders
Near Shajanabad Thana,
Bhopal
2 Shree Murugan Industries,
Plot No. 68/W, Hootagalli
Industrial Area
Belawadi Post
Mysore – 571186
3 AMI Eng.
Station Road,
Opposite Veena Cinema
Patna - 800 001
4 Chandan Eng Works,
Industrial Estate, Kurji
Patna - 800 010
5 Kalpataru Enterprises,
HIG, Sector E, Aliganj Scheme,
Lucknow - 226 020
16. Suppliers of Raw Materials
From surrounding forest of the area.
17. IMPLEMENTATION PERIOD
Proposed Project can commence production with in 6-8 weeks after sanction and first
disbursement of term loan.
18. 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.
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5 Raw material Estimates Based upon product Mix
6 Raw Material Availability Forest 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 Households 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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