Belts and Fan Belts
| Product Code | 35215 |
| Quality and Standards | Not available in BIS. As per market demand |
| Production Capacity: Qty. | Quantity : 12 kilo litres (per annum) Value : Rs. 30,00,000 |
| Uploaded on | 29th December 2006 |
Introduction
Ball pen is one of the most essential items for students, educational institutions and for office work, etc. Ink is a viscous and coloured fluid composed of reflux blue, varnishes, oil and drier. This is a mass consumption item.
Market Potential
Ball pen is the most common tool for all schools, colleges and university going students for writing purpose. As greater emphasis is being laid on removal of illiteracy, the prospects of Ball pen ink industry are bright.
Basis and Presumptions
| Efficiency and working hours considered for full capacity utilization. | 8 working hours/day/shift 300 working days taken into account annually. |
| Time period for achieving full/ envisaged capacity utilization. | Within 2 months after trial production. |
| Labours, wages and conditions. | As per local salaries. |
| Interest rate for fixed and working capital. | Average @ 14% |
| Margin money | Average 25% |
| Rented shed | With partition walls 20'×21' |
| Costing of machinery and equipment. | As per local rates. |
Implementation Schedule
| Selection of site | 2 months |
| Collection of quotation for M/c and Equipment | 2 months |
| Procurement of machinery. | 1 month |
| Placement of order for raw material | 1/2 month |
| Commercial production | ½ month |
| Total | 6 months |
Technical Aspects
Process of Manufacture
Metal complex dyes and complexes in castor oil/stand oil, varnishes and driers are mixed together in suitable proportions in a mixing machine. The material so produced is called ball pen ink, which is viscous in nature. Metal complex dyes are chosen to get a shade to suit customer's requirements. A list of metal complex dyes used for making ball pen ink is given at the end.
Quality Control and Standards
- As per market demand.
Sales Revenue
(100% capacity) Selling price varies depending on the product quality. An average price of Rs 32,000/- per tonne has been taken the annual income at installed capacity of 200 tonnes is Rs 64.00 lakhs.
Production Capacity (per annum)
Rs. lakhs |
|
| Quantity | 12 kilo litres |
| Value | Rs. 30,00,000 |
Motive Power
| Electric power | 5 H.P. approx. |
| Man power | 8 Nos. |
Pollution Control
No liquid or gaseous effluents are released during the process. Pollution is not involved.
Energy Conservation
- As per market demand.Not much relevant.
Break Even point
42%
Financial Aspects
A. Fixed Capital
(i) Shed of size (rented) 20'×20' with partition walls Rs. 200 per month
(ii) Machinery and Equipments
Description of M/cs |
Qty. |
Price (Rs.) |
| Mixing machine with motor Cap. 10 litres per 8 hrs. | 1 | 60,000 |
| Weighing m/c platform type Cap. 50 kg. | 1 | 15,000 |
| Shovel made of stainless steel material | 4 | 4,000 |
| Scraper knife | 4 | 1600 |
| Storage tank (for varnish and oil) HDPP material | 2 | 8,000 |
| Triple Roll Mill | 1 | 50,000 |
| Total | 1,38,600 | |
(iii) Testing Equipments
Testing Equipments |
Qty. |
Price (Rs.) |
| Ford's cup | 2 | 2,500 |
| Rectangular Glass Sheet | 2 | 800 |
| Exhaust Fan (for pollution control) | 1 | 800 |
| Cost of power connection, Electrification and installation Charges @ 10% of the cost of M/c. and equipments | 14,270 | |
| Total Cost of M/c. and Equipment | Rs. 156970 | |
| Cost of office equipments/ working Tables and chairs etc. | 5,000 | |
| Pre-operative Expenses | Rs. 5,000 | |
| Total Fixed Capital | Rs. 166,970 | |
B. Working Capital (per month)
(i) Personnel
Designation |
No. |
Salary (Rs.) |
Total (Rs.) |
| Manager/Chemist | 1 | 3000 | 3,000 |
| Accountant/Clerk | 1 | 2000 | 2,000 |
Technical Staff |
|||
| Skilled workers | 2 | 1500 | 3,000 |
| Unskilled workers | 2 | 1200 | 2,400 |
| Casual labour | 2 | 1000 | 2,000 |
| Total | 12,400 | ||
| (+) Perquisites @ 15% of salaries | 1,860 | ||
| Total | 14,260 | ||
(ii) Raw material including Packaging (per month)
Item |
Qty. |
Rate (Rs.) |
Value (Rs.) |
| Metal Complex | 200Kg. | 400/ kg. dyes | 80,000 |
| Stand oil/castor oil/solvents | 550 kg. | 130/Kg | 71,500 |
| Varnishes (alkyd/ Phenolic/Maleic) | 250 Kg. | 140/Kg | 35,000 |
| Drier | 10 Kg. | 230/Kg | 2,300 |
| Total | 1,88,800 | ||
(iii) Utilities (per month)
(Rs) |
||
| Power | 200Kg. | 400/ kg. dyes |
| Water charges | L.S. | 500 |
| Total | 2750 | |
(iv) Other Contingent Expenses (per month)
(Rs) |
|
| Rent of the shed | 2000 |
| Postage and stationery | 500 |
| Consumable stores | 500 |
| Repairs and maintenance | 500 |
| Transport charges | 1000 |
| Advertisement and publicity | 1500 |
| Insurance | 1500 |
| Sales expenses and miscellaneous expenditure | 1000 |
| Total | 8500 |
(v) Total Recurring Expenditure (per month)
(Rs) |
|
| Raw material | 1,88,800 |
| Utilities | 2,750 |
| Salary/Wages | 14,260 |
| Other expenditure | 8,500 |
| Total | 2,14,310 |
C. Total Capital Investment
| Fixed capital | Rs. 1,66,970 |
| Working capital for 3 months | Rs. 6,42,930 |
| Total | Rs. 8,09,900 |
Financial Analysis
Cost of production (per year) |
(Rs) |
| Total expenditure | 25,71,720 |
| Depreciation on machinery @ 10% | 14,270 |
| Depreciation on furniture @ 20% | 1,000 |
| Interest on total capital investment | 1,13,400 |
| Total | 27,00,390 |
Turnover (per year) |
(Rs) |
| Ball Pen Ink 12 KL @ Rs. 250 per litre | 30,00,000 |
Net Profit Before Income Tax |
Rs. 2,99,610 |
| Net Profit Ratio | 10% |
| Rate of Return | 37% |
| Break-even Point |
Calculation of Fixed Cost |
(Rs) |
| Depreciation on m/cs., equipments and office equipments | 14270 |
| Rent of shed | 24000 |
| Interest on total investment | 113400 |
| Insurance | 18000 |
| 40% of salaries and wages | 68448 |
| 40% of other contingent expenses (excluding rent and insurance) | 24000 |
| Total | 262118 |
Rs. 3,12,632 |
||
| B.E.P | FC ×100 ------------- FC+Profit |
|
| 249096 × 100 ------------------- 262118+ 299610 |
||
| 262118 -----------× 100 561728 |
||
| 46.6% |
Additional Information
- Machinery and equipments can be fabricated locally.
- Taxes like sales tax, income tax, etc. not included in the project profile.
Basic dyes for Ball Pen Ink
- Victoria Blue Base F 4 R
- Methyl Violet base
- Basonyl Yellow X-RL 300%
- Basonyl Brilliant Red X-4 G 300%
- Basonyl Green 830 Liquid
- Basonyl Blue 636
- Basonyl Violet 600
- Basonyl Red 482
- Basonyl Red 540
- Rhodamine GDN Extra
Addresses of Machinery Suppliers
- M/s. Anup Engineering Ltd.
Post Box No. 1158,
Ahmedabad-380002 - M/s. Billy Engg. Enterprises
761, Thiruvettivur,
Chennai-600081 - M/s. APV Eng. Co. Ltd.
7 Jessore Road, Dum Dum,
Kolkata - M/s. Sweta Bass
Industrial Estate,
Bareily, Uttranchal. - M/s. Ganson Ltd.
6, West View, Dadar,
Mumbai-400014 - M/s. Richard Engg.(Bombay) Pvt. Ltd.
25, MIDC Chemical Zone,
Ambernath-420501
Addresses of Raw Material Suppliers
- M/s. Gujarat Quinon Pvt. Ltd.
Block 150/B, Tundev, Anjesar
Road, Tundev, Taal Sabli, Distt.
Baroda-390005 - M/s. India Product
Manilal Mukhi Estate,
Naroda, Narole Highway,
Behind Narela House,
Ahmedabad-380026 - M/s. Dausala Organics Ltd.
22 B, Himalaya House,
Kasturba Gandhi Marg,
New Delhi-110001. - M/s. Indian Dye Stuff Industries Ltd.
Mafatlal Centre, Nariman Point,
Mumbai-400021. - M/s. Kanoria Chemical and Industry Ltd.
Park Plaza, 71, Park Street,
Kolkata-700016 - M/s. Unity Chemical
Block No. 85, D Wing,
Paramal Nagar,
Gorigaon (W)
Mumbai-400062.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
