Wrought Iron Furniture

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Product Code 342001000
Quality and Standards No Standard Specifications available
Manufacturers', own specifications
Production Capacity Qty. :
  • 3000 Nos. of Wrought Iron Chairs.
  • 3000 Nos. of Wrought Iron Tables.
  • 3000 Nos. of Wrought Iron Sofa.
  • 3000 Nos. of Wrought Iron Bed.
    Value : Rs. 309 Lakhs (per annum)
Uploaded on April 2007


Wrought iron articles in furniture industry are becoming more popular. The articles like chairs, sofas, tables and beds are made in quite attractive models with different designs on their arms and backs. Wooden furniture after some period, is worn out due to defects in wood quality and normal wear and tear. Due to elegant appearance, durability and innovative designs, wrought iron furniture is becoming popular in modern society. They are fast replacing the conventional wooden tables, chairs, sofas, beds.

Market Potential

With increase in the population and overall development that has taken place in the country, the number of educational institutions, hospitals, commercial establishments and offices are widely using chairs, tables, sofas and beds. This is creating good market potential in urban and semi-urban areas. As already explained, due to certain specific advantages, wrought iron furniture is fast replacing conventional wooden items. Apart from the domestic market, there is also export market for quality wrought iron furniture.

Basis and Presumptions

  • The cost of machinery and equipment is for particular make and prices are approximate.
  • All the operations involved in manufacturing wrought iron furniture will be undert taken in Industrial Workshop of the unit.
  • This project profile is prepared on the basis of double shift for 16 hours of working in a day. Total working days in a year have been assumed to be about 300 and efficiency 75%.
  • The skilled and semi-skilled workers in line are available in the local area.
  • The rental value of the land and built up area has been stipulated on the basis of rate prevailing in the industrial area. It may vary from place to place.
  • Rate of interest has been calculated @ 12% per annum. However, this figure is likely to vary depending on the financial outlay of the project and location of the unit.
  • The provisions made in other respect viz; personnel, utilities, raw material and over head expenses etc. are based on the prevailing market rates.
  • All the machinery, raw material would be available from indigenous sources.
  • The break-even point has been calculated on envisaged capacity utilisation basis.
  • The operative period of this project is estimated to be about ten years, considering technology obsolescence.

Implementation Schedule



Preparation of project report 1 Week
Provisional registration from DI/DIC of the area for getting assistance/ financial help 2 Weeks
Location of work shed with necessary infrastructure in industrial Area before ordering the Plant and Machinery 2 Weeks
Placement of order for plant and machinery 3 Weeks
Recruitment of Staff 2 Weeks
Installation of plant and machinery 2 Weeks
Time allotted for other misc. work 2 Weeks
Trial Production 2 Weeks

Total time required to start commercial production is estimated to be about four months.

Technical Aspects

Process of Manufacture

In the open market, plenty of raw material of wrought iron in the shape of round, square, iron rods, square pipes and also in other sectional forms is available. Wrought iron is having its own property of "malleability," it can withstand the load without cracking.

Chairs, tables, sofas and beds used in offices, factories, houses and hospitals are made from light wrought iron sheets, strips and tubular wrought iron. The sheets, strips and tubular wrought iron are cut to required sizes and pressed to shape, bent in a press brake for sides and drawers. Pipes of wrought iron for chairs, tables, sofas and beds can also be bent according to design. Backs of chairs, sofas and beds consist of decorative designing of various kind of flowers and leaves etc. For this, design can be made on pressing machine on the strips of wrought iron of different sizes. Then the sides and backs of wrought iron furniture are welded. Holes are made by drilling, wherever necessary for fitting screws.

Fixing of doors, hinges, assembly, cleaning, pickling and drying are to be done before painting. The spray painted articles are to be stove enamelled.

Quality Control and Standards

There is no quality standard. It is only fabrication of wrought iron steel with various self made designs. The attractive designs thus put lot of cheeriness in the products of wrought iron furniture.

Production Capacity

It is proposed to manufacture 1500 Chairs, tables, sofas and beds each per annum assuming their weight to be 7.5 Kg., 15 Kg, 22 Kg and 30 Kgs. respectively of wrought iron steel viz. rods, pipes and strips of various sizes.

Production Capacity (per annum)

Motive Power 10 HP.

Pollution Control

No pollution control device is necessary for this project. However, spray painting will cause pollution to some extent which can be minimised by installing exhaust fans in painting room.

Energy Conservation

No specific energy conservation system is required. Energy conservation can be done by saving single phase power connections as much as possible. General awareness is to be created for economic utilisation of energy at all points as far as practical.

Financial Aspects

Fixed Capital

(i) Land and Building
(i) Land 450 sq. mtr. @ Rs. 3500 per sq. mtr including registration 1575000
(ii) Cost of land development, fencing, approach road, inside roads, land scaping, drainage etc. @ Rs. 1000 per sq. mtr. 450000
(iii) Total built-up area 425 sq. mtrs. as follows  
  • Administrative building 75 sq. mtrs. construction cost @ Rs. 7,500 per sq. m
  • Factory shed 300 sq. mtrs. construction cost @ Rs.5000 per sq. mtr.
  • Stores, staff canteen etc. 50 sq. mtrs. @ Rs. 6,000 per sq. mtr.
  • Water System (including Bore Well + over head tank etc)
Total civil cost= cost of land + building 4887500

(ii) Machinery and Equipment


Ind./ Imp.


Amount (In Rs.)

Tredle Guillotine shearing M/c. 48" width Ind. 1 80000
Power Press 25 Tonne capacity -do- 1 60000
Hand operated brake press machine capacity 14 SWG x 1800 mm (Sheet Bending) -do- 1 50000
Spot Welding machine 10 SWG with Accessories -do- 1 40000
Hand operated hydraulic pipe bending machine 25 mm, 36 mm, capacity with all dies -do- 1 30000
Drilling machine 1½” -do- 1 15000
Air Compressor with (1 HP) motor and Spray Gun -do- 1 18000
Oxy-acetylene gas welding set -do- 1 14000
Pickling Tanks (Lead-lined) -do- 7 Nos. 25000
Power Hacksaw machine 6" Jaw Capacity -do- 1 No. 25000
Stoving Chamber (8' x 4' x 4') fabricated -do- 1 30000
Total     387000
Tools and Dies     50000
Furniture and Office equipments     80000
Total     517000
(iii)Pre-operative Expenses     30000
Total Fixed Capital (i+ii+iii)     5434500

B. Working Capital (per month)

(i) Personnel



Salary (Rs.)

Amount (In Rs.)

Administrative Staff
Sales-cum-Marketing Manager 1 15000 15000
Accountant-cum Store Keeper 1 8000 8000
Clerk-cum-Typist 1 6000 6000
Peon/chowkidar 2 3000 6000
Sweeper (Part-time) 1 2000 2000
Technical Staff
Foreman/Supervisor 2 8000 16000
Skilled Workers 8 6500 52000
Semi-skilled Workers 4 5500 22000
Welders 4 5000 20000
Helpers 4 4000 16000
Total     163000
Add Perquisites @ 22% of salary 35860
Total 198860

(ii) Raw Materials



Rate (Rs.)

Total (In Rs.)

Wrought iron pipes of different Dia. Sizes in Tonnes 10 45000 450000
Wrought iron strips in 2 mm 3 mm, 6 mm and 10 mm thickness in Tonnes 4.8 53000 254400
Angle Irons and Rounds in different size 4 40000 160000
Seating Material for Chairs and Sofas in Nos 1000 550 550000
Coir Foam Sheets for beds in Nos 250 1450 362500
Bought out components such as nuts, bolts, rivets, Welding Rods and Paints etc.     120000
Total 1896900

(iii) Utilities


(In Rs.)

Electricity and fuel 10000

(iv) Other Contingent Expenses


(In Rs.)

Insurance Expenses 3000
Advertisement/Publicity charges 30000
Travelling Expenses 10000
Consumable stores such as oil, lubricants and Cotton waste etc. 10000
Repair and maintenance 4000
Transport and packaging charges 20000
Postage and stationery 6000
Telephone Expenses 5000
Miscellaneous Expenses 10000
Total 98000
(v) Total Recurring Expenditure (per month) (In Rs.)
Personnel 198860
Raw Material 1896900
Utilities 10000
Other Contingent Expenses 98000
Total 2203760
(vi) Total Working Capital (for 2 Months)
Rs 2203760 X 2 4407520

C. Total Capital Investment

(i) Fixed Capital 5434500
(ii) Working Capital (for 2 months) 4407520
Total 9842020

Machinery Utilisation

The number of machines to be installed has been determined in such a way, that planned scheduling of jobs will not cause any bottleneck in operation during bulk production. As such, the unit will make utilisation of machines as envisaged, without any bottleneck.

Financial Analysis

Cost of Production (per year)

Amount (Rs.)

Total recurring cost 26445120
Depreciation on Machine Equipment @ 10% 38700
Depreciation on Furniture and Office Equipment @ 20% 16000
Depreciation on Tools and Dies @ 25% 12500
Interest on total investment @ 12% 1181042
Depreciation in Building @ 5 % 244375
Total 27937737

Turnover (per year)

(In Rs.)

By sale of 3000 Nos. of Wrought iron Chairs @ Rs. 900 each 2700000
By sale of 3000 Nos. of Wrought Iron Tables @ Rs. 2000 each 6600000
By sale of 3000 Nos. of Wrought Iron Sofas @ Rs. 2800 each 9000000
By sale of 3000 Nos. of Wrought Iron Bed @ Rs. 4000 each 12600000
Total 30900000

Net Profit (per year)


= Rs. 30900000 - 27937737

  = 2962263

Profit Ratio

  Net Profit per year × 100
  Turnover per year
  = 2962263 × 100
  = 9.59

Rate of Return

  Net Profit/year × 100
  Capital Investment
  = 30.1

Break-even Point

Fixed Cost (per year)

(In Rs.)

Depreciation on machinery, Office Furniture, Tools and Dies etc. 67200
Depreciation on Building @ 5 % 244375
Insurance 36000
40% of Salaries and Wages 954528
40% of Contingent expenses other than Insurance 456000
Interest on total investment 1181042
Total 2939145

(ii) Net Profit (per year) 2962263
B.E.P Fixed Cost × 100
Fixed Cost + Net Profit
  = 2939145 × 100
  = 2939145 + 2962263
  = 49.8

Addresses of Machinery and Equipment Suppliers

  • M/s. Ganesh Engg. Works
    A-287, Okhla Indl. Area,
    Phase–I, New Delhi-110020.
  • M/s. Lamba Press and Shears
    6/10, Kirti Nagar Indl. Area,
    New Delhi–110015
  • M/s. Om Mechanical Works
    Plot No. 5, Gali No. 4,
    New Rohtak Road Indl. Area,
    New Delhi-110005.
  • M/s. United Engg. Corporation
    B-96, Mayapuri, Phase-I,
    Rewari Line,
    New Delhi-110064.

For Power Press

  • M/s. Lamba Bros (P) Ltd.
    6/10, Kirti Nagar Indl. Area,
    New Delhi–110015.
  • M/s. Sonar Machine Tools
    Near Kishan Cold Storage,
    Dr. Vikram Sarabhai Marg,
    Gondal Road, Rajkot–360004.
  • M/s. Vishwakala Machine Tools
    Gondal Road, Near S.T. Workshop,
    Rajkot - 360 004.
  • M/s. Vankes and Company
    13/1, Indl., Estate, Patliputra,
    Patna - 800 013.

For Hacksaw Machines

  • M/s. Sagar Heavy Engg. (P) Ltd.
    G.T. Road, Nand Pur P.O.,
    Near Sannewal,
  • M/s. Vee Kay Industries
    S-B, Textile Colony, Indl. Area, A
  • M/s. Jaswant Engg. Works
    G.T. Road, Millar Gang,

For Hand Operated Brake Press

  • M/s. Modgil Co.
    G.T. Road,
    Batala - 143505.
  • M/s. Sonar Machine Tools
    Near Kishan Cold Storage,
    Dr. Vikram Sarabhai Marg,
    Gondal Road,
    Rajkot - 360 004
  • M/s. Khalsa Engg. Works
    B-226, Naraina Indl. Area,
    Phase-I, New Delhi - 110028.

For Drilling Machine

  • M/s. Modern Tools Manufacturers
    B-118, Phase-I,
    Mayapuri Indl. Estate,
    New Delhi.
  • M/s. Paul and Co.
    24, Najafgarh Road,
    New Delhi-110015
  • M/s. Shree Mahalaxmi Engg. Works
    27, DLF Indl. Area,
    Najafgarh Road (Moti Nagar)
    New Delhi-110 015.

For Welding Sets

  • M/s. Kukreja Welding Equipments
    A-63, G.T. Karnal Road,
    Indl. Area, Delhi-110 033.
  • M/s. Sham Ravinder and Co.
    23, New Qutab Road,
    Opp. Telewara,
    Delhi - 110 006.
  • M/s. Berco Welding and Electricals (P) Ltd.
    G.T. Road By Pass, Near Indl. Estate,
    Jullunder City (Punjab).

For Pickling Plants

  • M/s. Govan Indl. Corporation
    29-R/2, Indl. Area,
    New Rohtak Road,
    New Delhi.

For Air Compressor

  • M/s. Indoon Projects and Equipments
    D-170, Okhla Indl. Area, Phase-I,
    New Delhi-110020.
  • M/s. Three-F-Filters (P) Ltd.
    C-110/1, Naraina Indl. Area,
    New Delhi-110028.
  • M/s. Hydraulic Machine Tools
    S/228, Indl. Area,
    Jallandar City.

Raw Material Suppliers

Raw material is available in the local markets.

For further information please contact

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