Hair Brushes
| Product Code | 389102008/ 303835001 |
| Quality and Standards | IS 4584:1968 (Reaffirmed with amendment Nos. 2 :1999.) |
| Production Capacity | Qty. : 162000 Nos. (per annum) Value : Rs. 5166000 |
| Uploaded on | April 2007 |
Introduction
The brushes used in polishing of Shoes, dusting of Woolen Clothes, Carpets and for dressing up of ladies hair etc, fall in the category of hair brushes. They are useful household products and are available in different sizes and shapes.
Market Potential
The products being of daily use have vast scope for production and sale in big cities, towns and in villages as well. As the standard of living is going up, the demand of hair brushes is also increasing throughout the country. The products also have good scope for exports.
Basis and Presumptions
- Unit is assumed to work 16 hours per day on double shift basis for 300 working days in a year.
- It is expected to achieve 75% efficiency of full capacity utilization.
- Wages for workers have been taken as those prevailing at the time of preparation of Project Profile.
- Interest Rate for the Fixed and Working Capital of the project has been taken at an average rate of 12% per annum.
- The Building is of own
- The Cost of Machinery and Equipment has been taken as per the prices prevailing in the local markets.
Technical Aspects
Process of Manufacture
- Manufacturing and Painting of wooden frames and handles.
- Preparation of hairs and cutting to size.
- Bunching of hairs and fixing in frames.
- Fixing up of frames and handles with adhesive glue.
- Dressing up and packing up of brushes.
Implementation Schedule
Activity |
Period in Weeks |
| Preparation of Project Report | 2 |
| Selection of Site | 2 |
| Provisional Registration as Small Scale Unit | 1 |
| Availability of Loan/Finance | 4 |
| Procurement of Machinery and Equipment | 2 |
| Erection of Machinery and Equipment | 1 |
| Recruitment of Staff and Labour | 2 |
| Procurement of Raw Material | 2 |
| Trial Production | 2 |
The overall time required to commission the project may be 4 to 5 months.
Quality Control and Standards
BIS has laid down IS Specification No. IS: 4585:68, Reaffirmed - 1999 for Shoe Brushes which may be followed for producing quality goods. Other products may be manufactured as per customers' requirements.
Production Capacity (per annum)
| i. Shoe Brushes | 120,000 Nos. |
| ii. Wooden Cloth and Carpet Brushes | 24,000 Nos. |
| iii. Ladies Hair Brushes | 18,000 Nos. |
| Total | Rs. 5166000 lakhs |
Pollution Control
The process of manufacture is non polluting and hence no pollution control measures are necessary.
Energy Conservation
The power consumption in this unit is not of high order where special energy conservation needs may have to be looked into. However, judicious use of energy may be always advisable for which proper maintenance of machines may be undertaken periodically and idle running of machine avoided.
Financial Aspects
Fixed Capital
| (i) Land and Building | |
| (i) Land 100 sq. mtr. @ Rs. 3500 per sq. mtr including registration | 350000 |
| (ii) Construction Cost(workshop, office and store) for 100 Sq. mtr @ 5000/ per sq. mtr | 500000 |
| (iii)Water Supply system(including Tube well +overhead tanK) | 50000 |
| Total civil cost= cost of land + building | 900000 |
(ii) Machinery and Equipment
Description |
Qty. Nos. |
Amount (In Rs.) |
| Wood Working Circular Saw 8" dia complete with 1 HP motor, Pulley, belt and starter | 1 | 7500 |
| Wood Working Jig Saw Machine having 20" depth 12" × 12" Table complete with 1 HP Motor, Pulley, Belt and Starter | 1 | 15750 |
| Wood Trimming Lathe 4' with ½ HP motor | 1 | 11550 |
| Belt and Disc Sander complete with motor ½ HP and Pulley and Belt | 1 | 7750 |
| Motorised Bench type drilling machine with ½ HP Motor, Capacity-13 mm | 1 | 6650 |
| Buffing and Polishing Machine with ½ HP Motor with stand |
1 | 9700 |
| Total | 58900 | |
| Installation and Electrification charges @ 10% | 5890 | |
| Cost of Dies, Tools and Fixtures, and Measuring equipments | 10000 | |
| Cost of Office Equipment/ Working Table etc. | 40000 | |
| Total(ii) | 114790 | |
| (iii) Pre-Operative Expenses | 20000 | |
| Fixed Capital (i+ii+iii) 20 | 1034790 | |
B. Working Capital (per month)
(i) Staff and Labour
Designation |
No. |
Salary (Rs.) |
Amount (In Rs.) |
| Manager | 1 | 12000 | 12000 |
| Clerk/Accountant | 1 | 7000 | 7000 |
| Supervisor | 2 | 7000 | 14000 |
| Skilled Workers | 6 | 5500 | 33000 |
| Semi-skilled Workers | 6 | 4500 | 27000 |
| Helpers | 6 | 3000 | 18000 |
| Peon/Watchman | 2 | 3000 | 6000 |
| Total | 117000 | ||
| Perquisites @ 22% of Salary | 25740 | ||
| Total | 142740 | ||
(ii) Raw Material Including Packing Materials
Particulars |
Rate (Rs.) |
Qty. |
Total (In Rs.) |
| Natural Hair Assorted type | 400/ Kg. | 240 kg. | 96000 |
| Sawn Wood/Timer of soft grain | 300/ C.f.t. | 100 C.f.t. | 30000 |
| Resin/Glue | 105/kg. | 200 Kg. | 21000 |
| Paint/Varnish and Nylon Thread | 120/Kg | 200 Kg. | 24000 |
| Packing Material | L.S | 15000 | |
| Total | 186000 | ||
(iii) Utilities
Particulars |
Amount (Rs.) |
| Average consumption 2000 KWH Unit @ Rs. 5/ unit | 10000 |
(iv) Other Contingent Expenses
Other Contingent Expenses |
(In Rs.) |
| Repair and Maintenance | 4000 |
| Postage and Stationery | 4000 |
| Telephone Charges | 3000 |
| Transportation and Freight | 10000 |
| Insurance | 3000 |
| Sales Expenses | 10000 |
| Miscellaneous Expenses | 10000 |
| Total | 44000 |
(v) Working Capital (per month)
Particulars |
Amount (Rs.) |
| Raw Material | 186000 |
| Salary/Wages | 142740 |
| Utilities | 10000 |
| Other Contingent Expenditure | 44000 |
| Total | 382740 |
| (vi) Working Capital for 1.5 Months | = Rs. 382740 × 1.5 |
| 574110 |
C. Total Capital Investment
| (i) Fixed Capital | 1034790 |
| (ii) Working Capital for 1.5 months | 574110 |
| Total | 1608900 |
Machinery Utilisation
Bunching of hairs and fixing is bottleneck operation, hence by applying more workers production can be increased.
Financial Analysis
Cost of Production (per year) |
Amount (Rs.) |
| Total Recurring Expenditure | 4592880 |
| Depreciation on Plant and Machinery and Equipment @ 10% | 5890 |
| Depreciation on Civil cost 5 % | 45000 |
| Depreciation of Office Equipment/ Furniture @ 20% | 8000 |
| Depreciation on Tools, fixtures @ 25% | 2500 |
| Interest on Total Capital Inv. @ 12% | 193068 |
| Total | 4847338 |
Turnover (per year)
Particulars |
Qty. Nos. |
Rate (Rs.) |
Total (In Rs.) |
| Shoe Brushes | 120000 | 28 | 3360000 |
| Woollen Clothes and Carpet Brushes | 24000 | 40 | 960000 |
| Ladies Hair Brushes | 18000 | 47 | 846000 |
| Total | 5166000 |
Profit
| Sales - Cost of Production | 318662 |
| Percentage Profit on Sales | 6.17% |
| Rate of Return on Total Capital Investment | 19.81% |
Break-even Point
Fixed Cost
Description |
Amount (Rs.) |
| Total Depreciation | 16390 |
| Depreciation on Building | 45000 |
| Insurance | 36000 |
| Interest on Total Capital Investment | 193068 |
| 40% of Salary and Wages | 685152 |
| 40% of Other Contingent Expenses Excluding insurance | 196800 |
| Total | 1172410 |
| B.E.P | Fixed Cost × 100 --------------------- Fixed Cost + Profit |
| Where, F.C. | = 1172410 |
| Profit | = 318662 |
| = 78.63 |
Addresses of Machinery and Equipment Suppliers
- M/s. Essential Machine Tools Pvt. Ltd.
5, Nyay Murthi G.N. Vaidya Marg,
Bank Street, P.O. Box No. 2,
Behind State Bank of India,
Fort, Mumbai – 400 001
- M/s. Perfect Machine Tools Co. Pvt. Ltd.
Sir P.M. Road, Mumbai.
Raw Material Suppliers
Locally available.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
