Ophthalmic and Sun Photochromatic Glasses

Product Code	91103 and 91111
Quality and Standards	IS 6472:1976 6000 dozens. of Photochromatic lenses Valued at : Rs. 9360000
Production Capacity	1150 dozs. of Coloured glasses Valued at: Rs.1242000 Total: Rs. 10602000
Uploaded on	June 2007

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 colours and varieties. The sunglasses are mostly manufactured in plane without power in various sizes, colours and shades.

Photochromatic 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 colour and shade to the glass and in normal indoor light, the glasses revert to its colourless clear transparency. These glasses also protect eyes from UV rays and are useful both as sunglasses and reading glasses.

Market Potential

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.

Basis and Presumptions

The project is based on double shift of 8 hours per day with 300 working days in a year utilising the latest automatic machines indigenously available. The prices and other charges shown in the profile may vary from place to place and brand of the product.

Implementation Schedule

Sl. No.	Activity	Period
l	Project preparation and acquirement of shed and provisional Registration etc.	2
2	Procurement of machinery and raw materials	4
3	Installation of machinery and equipments and appointment of Labour etc.	2
4	Starting trial production	1
Total		9

Technical Aspects

Process of Manufacture

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 lloy 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.

Quality Control and Standards

The specifications laid down by the Bureau of Indian Standards are:

IS 6472:1976 General requirement for tinted ophthalmic glass.

Financial Aspects

A Fixed Capital

Land and Building

Description	(Rs.)
Land 150 sq meter.@ Rs 4000 /Sq.m	600000
Machinery shed 70 sq meter @ Rs. 4000 /Sq. m	280000
Godown & office 70 sq mtr @ Rs 7000/sq mtr	490000
Total	1370000

Machinery and Equipments

Particular items	Qty	Cost (Rs.)
Spherical Diamond Curve Generator with motor and pump on three phase 440 volts, 1 HP on AC supply and switch	1 No.	60000
Automatic two spindle spherical machine with feeding pump to each spindles for smoothing with switch and motors of ½ HP each and timer	2 Sets	60000
Automatic two spindle spherical machine with feeding pump to each spindle for polishing with motor and ½ HP motor of each	5 Sets	100000
Surface blocker and deblocker unit with adjustable exterior	1 Set	20000
Thermostat, 220 V AC.1000 watts. Set of grinding and polishing spherical tools 20 pairs	20 Pairs	3000
Spherical blocking gotes 50 mm to 55 mm each	25 doz. Pairs	3000
Total		246000

Testing Equipments	Qty	(Rs.)
Brass gauges 600±diapter	10 Nos. (Each Rs. 40)	4000
Lensometer (Indigenous)	1 No.	15000
Lens measure (Indigenous)	2 No.	1500
Trial set	1 Set	4000
Office equipment, furniture etc.		50000
Installation, electrification charges at 10% of the total cost of machinery and equipment		7450
Preliminary and pre-operative expenses		15000
Total		96950

Working Capital (Per Month)

(i)Staff and Labour (per month)

Designation	No.	Salary month (Rs.)	Total (Rs.)
Supervisor	2	10000	20000
Skilled workers	10	5000	50000
Semi-skilled workers	4	4000	16000
Clerk-cum-Typist	1	5000	5000
Watchman/Peon	1	3000	3000
Total			94000
+ Perquisites 22% on salary			20680
Total			114680

(ii)Raw Materials (per month)

Description	Qty.(Rs.)	Amount (Rs.)
Photochromic 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 @ Rs.1080 per doz.	520	561600
Coloured glass blanks of different shades i.e. SP2, SP4 and SP10 of 55 to 65 mm diameter and 3.00 mm to 5.00 mm thickness @ Rs. 720 per doz.	100 doz. Pairs	72000
Abrasive and polishing compounds	LS	35000
Blocking alloy and cleaning chemical and other allied materials	LS	3000
Packing materials	LS	2000
Other miscellaneous	LS	1000
Total		642600

(iii)Other Contingent Expenses (per month)

Particulars	(Rs.)
Postage and stationery	2000
Telephone expenses	3000
Consumable stores	3000
Repairs and maintenance	5000
Advertisement and publicity	5000
Miscellaneous expenses	5000
Insurance	2190
Total	25190

(iv) Utilities (per month)

Particulars	Value (Rs.)
Power	10000
Water	300
Total	10300

(v) Total Recurring Expenditure (per month)

	(Rs.)
(i+ii+iii+iv)	792770
Total working capital for 2 months (792770 × 2)	1585540

Total Capital Investment

Building plus Machinery and Equipments	1712950
Working capital fo r 2 m onths	1585540
Total	3298490

Machinery Utilisation

85% of utilisation has been taken into consideration on the machinery and man power.

Financial Analysis

Cost of Production (per annum)

	(Rs.)
Total recurring expenditure	9513240
Depreciation on machinery and equipment @ 10%	34295
Depreciation on building 5%	68500
Interest on investment at @ 13%	428803.7
Total	10044838.7

Turnover

Particular items	Turn-over (per year)
6000 doz. Pairs of Photochromic lenses of various diameters, thickness and shades at an average rate of Rs.1560 per doz. Pairs	9360000
1150 doz. Pairs of coloured glass blanks of different diameters, thickness and shades at an average rate of Rs.1080 per doz. Pairs	1242000
Total	10602000

Profit (per year)

	(Rs.)
Turnover	10602000
Cost of production	10044838.7
Profit	557161.3

Net Profit Ratio

		Net profit per year × 100 --------------------------- Turn over per year
		557161.3 x 100 ------------------------ 10602000 5.26

Rate of Return

		Net Profit per year × 100 ----------------------------------- Total Investment
		557161.3 x 100 ------------------- 3298490 16.89

Break-even Point

Fixed Cost	(Rs)
Depreciation	102795
Interest on total investment	428803.7
Insurance	26280
40% of Salaries and wages	550464
40% of Other contingent expenses	110400
Total	1218742.7

B.E.P		Fixed Cost x 100 --------------------------- Fixed cost + Net Profit(per year)
		1218742.7 x 100 ------------------------- 1218742.7 + 557161.3
		68.63

Addresses of Machinery and Equipment Suppliers

• M/s. Prabhat Works
  1055-56, Lal Kuan,
  Delhi-110006.
• M/s. New Way Optical Industries
  2795, Peepal Mahadev,
  Hauz Kazi, Delhi-110006.
• M/s. J.C. Dass and Co.
  7, Usha Ganj,
  Indore (MP).



Raw Material Suppliers

• M/s. Jain Optical Industries
  Chasma Building, Ballimaran Street,
  Chandni Chowk,
  Delhi-110006.
• M/s. Micro Abrasives
  65, Jor Bagh,
  New Delhi.
• M/s. Indian Rare Earth Ltd.
  (Cerium Oxide),
  Udyog Mandal-683501,
  (Kerala)
• M/s. Ehance Pilkington Ltd.
  (Glass Blanks),
  A Subsidiary of Pilkintor Bros.,
  PLC,St. Asaph Clyyd LL.176,
  LL Great, (Britain).
• M/s. Corning France
  BP 61, 7721, Avor,
  Gedey, (France).
• M/s. Desag, Dehlshe Special Glass
  at Grunenplan Posttach,
  80, D-3223, Delligsen-2,
  (West Germany).

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com