Paper Napkin Project Report 6m1j1j

UNITED REFRESH NAPKIN Pvt.Ltd. PROJECT REPORT OF PAPER NAPKIN Manufacturing 40,00,000 Paper Napkins (PN) ie 100 nos x 40,000 Pkts. Per month (20 days). RAW MATERIALS: 1. 2. 3. 4.

Tissue Paper Jumbo Rolls Water Based Color Nylon Printing Block Polythene bag

MACHINERIES: 1. 2. 3. 4.

30cm Single Size Double Track Paper Napkin Making Machine. Stand up type 12” sealing machine Hand operated 12” sealing machine 300kg Platform Weighing Scale

PRODUCTION PROCESS: Printing – Embossing – Folding – Counting – Cutting by fully automatic machine. Packing and Sealing will be done manually.

PROJECT COST FOR 40,00,000 PAPER NAPKINS PER MONTH TOTAL COST OF THE PROJECT:

Rs.

Advance for Factory Shed

2,00,000

Total cost of the Machinery

6,54,600

Production cost for 3 months (5,06,800 x 3)

15,20,400

Fixed Expenses for 3 months (1,20,000 x 3) Reserve Fund

3,60,000 1,55,000 --------------------

Total Cost of the Project

28,90,,000 -------------------------

FUND PLANNING: Share Capital Loan for Machinery Loan for Working Capital

10,00,000 4,90,000 14,00,000 ----------------------

Total

28,90,000 -----------------------

TOTALL MACHINERY COST: 30cm Single Size Double Track Paper Napkin Making Machine Double Embossing, Double color Printing, Automatic Folding, Counting and Cutting.

6,25,000

300kg Platform Weighing Scale 12,500 Standup model 12” Sealing Machine 14,500 Hand operated 12” Sealing Machine 2,600 -------------------Total (Including taxes) 6,54,600 ---------------------FIXED EXPENSES PER MONTH: Salary for Manager (Managing Director)

25,000

Salary for Marketing Manager (Director)

20,000

Salary for Production Manager (Director)

15,000

Salary for Machine operator

20,000

Salary for Helper

10,000

Salary for Packing & Sealing girls 2nos x Rs.5,000 10,000 Salary for Night Watchman

5,000 ----------------

Total salary per Month

1,05,000

Rent

20,000

Lighting Power

1,000

Office Expenses including stationery & T.A. 9,000 -----------------Total Fixed Expenses per Month

1,35,000 ------------------

COST OF PRODUCTION FOR 40,00,000 PAPER NAPKINS PER MONTH (20 days production per month) Size: 30cm x 30cm

GSM: 18

Printing : Single color.

So weight of the single paper napkin = 1.62 gms Add wastage 5 %

0.08 ------------1.7 gms -------------

Tissue paper roll cost is Rs 66 / kg So Paper cost for 40,00,000 Paper Napkin Printing Ink Rs. 2.5/1000 Paper Napkin Packing Cover 40,000 40,000

nos @ Rs. 1.

4,48,800 10,000

Power per month

8,000 -------------

Total cost of production per month

5,06,800 ---------------

PROFITABILITY: Sale value of 40,00,000 Paper Napkins @ 20paise per napkin. 8,00,000 Less Delivery expenses @ 20paise per Pkt. 8,000 -----------------Net Sale Value Less Cost of Production

7,92,000 5,06,800 -----------------

(Surplus per napkin 0.0713)

2,85,200

Less Fixed expenses

1,35,000 -----------------1,50,200

Less Bank interest @ 16% for 18,90,000 per month 25,200 -----------------Profit per month before tax Less depreciation on Machinery @ 15%

1,25,000 8,182 ------------------

Profit per month before tax

1,16,818 -------------------

ANALYSIS: % of profit on Sales

14.6 %

% of profit on cost of production

23.05 %

% of profit on share capital per year

140%

Break Even point per month Napkins

23,61,599

Break Even point per day (20 days production) Napkins

1,18,080

Prepared by Jananayagam.T 9380017104 / 7401504557