PROJECT PROFILE

PRODUCT : STAINLESS STEEL COOKING UTENSILS

PRODUCT CODE

71416

QUALITY & STANDARDS :

IS : 14756 2000

PRODUCTION CAPACITY :

1. Cooking utensils 45 MT 2. Serving Utensils 9 MT 3. Table Utensils 18 MT 4. Storage Utensils 48 MT

MONTH AND YEAR OF PREPARATION

Nov, 2010

PREPARED BY

MECHANICAL DIVISION MSME-DEVELOPMENT INSTITUTE 10-Industrial Estate, Pologround, Indore (MP) 452 015 PH : 0731-2421540/2421659/2421037 Fax: 0731-2420723 Email : dcdi-indore@dcmsme.gov.in

1. INTRODUCTION : The cooking utensils are used in every home and by the commercial food suppliers. These are made up of stainless steel and good for cooking as well as for storage of food items without changing in the taste and quality of food. In our country and at international level stainless steel cooking utensils are very popular due to its easy maintenance and unbreakable property. 2. MARKET POTENTIAL : The market for these utensils is very competitive and huge in nature, very few industries are engaged for manufacturing these utensils in this region. These utensils can be categorized as (a) cooking utensils (b) serving storage utensils. Now a days, the Indian trend towards eating habit has been changed remarkably, every home, hotel, restaurant, snakes bars and small caterers are in need of a good quality and durable utensils which will not destroy the food quality, easy to handle, easy to clean. Hence, scope for these items remaining progressive with the development of the society. Also these items are required in defense and other para military forces for their regular use and good quality utensils can be exported, if made as per the quality standards. 3. BASIS AND PRESUMPTIONS : 1. The project profile has been prepared on the basis of single shift of eight hours each day and at 75 % efficiency. 2. It is presumed that in the Ist year, the capacity utilization will be 70 % followed by 85 % in the next year and 100 % in the subsequent years. 3. Arrangements for labour wages has been made as per prevailing market rates, which may vary from place to place and the minimum wages fixed by concerned authorities. 4. Interest on fixed capital and working capital has been calculated at an average rate of 16 % per annum. 5. A provision of 30 % of project cost / investment has to be made by the entrepreneur for margin money. 6. The cost of land and constructed/built up shed and office has been taken as per prevailing market rates at the time of preparation of this project profile and are likely to vary from supplier to supplier and place to place.

4. IMPLEMENTATION SCHEDULE : 1. Preparation of project report 2. Provisional registration as SSI 3. Financial arrangements 4. Purchase and procurement of machinery 5. Installation of machinery 6. Electrification 7. Recruitment of staff and workers 3 weeks 2 weeks 8 12 weeks 4 6 months 1 2 months 2 months 2 3 months

5. TECHNICAL ASPECTS Process of manufacture : The domestic utensils are of mainly following types i. e. (a) Cooking utensils (b) Serving utensils (c) Table utensils (d) Storage utensils

The process of manufacturing involves sheet cutting on circle cutting machine from deep drawing or punching or rolling operation is done. According to the requirement of the utensils after their operations spot welding, grinding, drilling, spinning, polishing and buffering inspections are performed according to the requirement of the products and finally there are packed in suitable and procurable packing.

4. FLOW PROCESS CHART Raw Material

Punching & cutting on handling press

Deep drawing on deep drawing

Cold Rolling on rolling machine

Spot welding

Grinding on grinding machine

Drilling on drilling machine

Spinning on spinning machine

Polishing on polishing machine

Buffing on buffing machine

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PRODUCTION CAPACITY : 1. 2. 3. 4. Cooking utensils - 45 MT Serving Utensils - 9 MT Table Utensils - 18 MT Storage Utensils - 48 MT

8. 9.

MOTIVE POWER REQUIREMENT : 16 KW

POLLUTION CONTROL REQUIREMENT : Stainless steel utensils making is not pollution creating industry. As such, no special type of pollution control equipment needs to be installed. 10. ENERGY CONSERVATION : Suitable energy efficient motors are to be used on proposed machines with provision of recommended shunt capacitor. 11. A. FINANCIAL ASPECTS : Fixed capital Land & building : built up / covered area [rented] 200 sq. meters Rs. 5000/-

B. Machinery and Equipment S No. Description of M/c Qty. 01. Deep Drawing action power press 25 01 Ton 02. Cutting press 25 Ton 02 03. Cold rolling machine 01 04. Spot welding machine 01 05. Grinding machine 01 06. Grinding machine 02 07. Hand press 02 08. Cutting press 09. Lathe machine 01 10. Drilling machine pillar type 01 11. Milling machine 01 12. Powered polishing machine 02 13. Spinning machine 02 14. Hand tools 15. 16. 17. Installation and electrification charges @ 10 % Cost of dies, jigs and fixtures Office equipment and furniture

H.P. 1 HP 2 HP 1 HP 1 HP 1 HP 2 HP -1 HP HP 1 HP 1 HP 1 HP

Prices 1,25,000.00 90,000.00 75,000.00 65,000.00 20,000.00 40,000.00 80,000.00 1,20,000.00 45,000.00 2,50,000.00 50,000.00 60,000.00 10,000.00 11,30,000.00 1,13,000.00 50,000.00 50,000.00 13,43,000.00 5

WORKING CAPITAL (Per month): a. Personnel : S. No. 01 02 03 04 05 06 07 Designation Manager Supervisor Accountant /Clerk Skilled workers Semi skilled Peon /chowkidar Helper Add. Perquisites @ 15 % of salary 01 01 01 04 04 01 01 Nos. Salary (Rs.) 10,000.00 6,000.00 5000.00 3000.00 2500.00 2,000.00 2,000.00 Total (Rs.) 10,000.00 6,000.00 5,000.00 12,000.00 10,000.00 2000.00 2000.00 47,000.00 7050.00 54050.00

b. Raw material: Particulars Qty. Assorted sheet 0.7 10 MT mm 0.9 mm Rates Rs.) 60,000.00/MT Value (Rs.) 60,000.00 15000.00 6,15,000.00 c. Utilities : Power 16 KW x 8 x 25 x 4 Water d. Other contingent expenses (per month) : Rent Postage & Stationary Telephone Consumable stores Repairs & Maintenance Transport Charges Advertisement Sales expenses Misc. expenses Packing charges Total 5000.00 2000.00 1500.00 2000.00 1000.00 2000.00 3000.00 1500.00 500.00 2000.00 -----------19,000.00 6 12,800.00 300.00

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TOTAL WORKING CAPITAL a. b. c. d. Personnel Raw Material Utilities Other contingent expenses Total Working capital for 3 months 54,050.00 6,15,000.00 13,100.00 19,000.00 ----------------7,01,150.00 21,03,450.00

Total capital investment : i. ii. 13. 1. i. ii. iii. iv. 2. S. No. 01. 02. 03. 04. Fixed cost Working capital for 3 months FINANCIAL ANALYSIS Cost of production (Per year ) : Total recurring cost Depreciation on machinery equipment @ 10 % Depreciation on office equipment@ 20 % Interest on total investment @ 16 % per annum Turn over ( per year ) : Item Cooking utensils Serving utensils Table utensils Storage utensils Total Net profit (per year) : Total turn over - cost of production 1,06,00,000 - 90,88,232 = 15,11,768 Qty. 45 MT 9 MT 18 MT 48 MT Rates 78,000/MT 1,42,500/MT 1,20,000/MT 706.000/MT Value 35,10,000.00 12,82,500.00 21,60,000.00 36,48,000.00 1,06,00,500.00 84,13,800.00 1,13,000.00 10,000.00 5,51,432.00 Rs. 13,43,000.00 Rs. 21,03,450.00

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4.

Net profit ratio : Net profit ------------- x 100 Turn over

15,11,768 --------------- x 100 1,06,00,000 5. Rates of Return : Net Profit ------------------- x 100 Total Investment 15,11,768 ------------- x 100 = 43.86 % 34,46,450 6. (1) Break even point : Fixed Cost a. Rent b. Depreciation on machinery & equipment & office eq. c. Interest on total investment @ 16 % per annum d. 40 % of salary and wages e. 40 % of utilities and other contingent expenses Total

60,000.00 1,23,000.00 5,51,432.00 2,59,440.00 1,30,080.00 -----------------11,23,952.00

B.E.P. =

Fixed cost ---------------------- x 100 Fixed cost + profit 11,23,952 --------------------------- x 100 = 42.64 % 11,23,952 + 15,11,768

Names and address of machinery and equipment suppliers : 1. M/s Bharat Machinery Transport Nagar, Bhawarkuan , Indore [M P] M/s Quality Machinery 116, Jawahar Marg, Indore [M P] M/s Jay Fluid Society Ltd., D 1, Plot 18/1, Chinchwad, Pune

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3.

Names and address of Raw Material suppliers : Local Market

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