Wire Baskets Manufacturing
Introduction
Baskets and carriers made up of wire find wide usage in homes, hotels, shops for keeping utensils, crockery, fruits and other such stuff. It is alos used in two wheelers as carrier and its requirement is ever widening. Stands, baskets, other domestic items and carrier for two wheelers can also be manufactured.
Market
There is good demand for wire baskets in the market. These type of baskets used as shopping bags as well as to carrying out things from market.
Manufacturing Process
First of all a lay out is prepared of the items size and design and then 8 to 10 yard of wire is cut and given desired shape with the help of dye. After this, the wires are joint with the help of spot welding machine. Later these shapes are covered by plastic coating powder and heated in electric furnace for specific time period so that the powder melts over the item whihc makes it safe and attractive. this coating powder is available in different oclours like red, green, blue, yellow voilet.
Production Capacity Per Annum
| Capacity |
36000 Baskets per annum |
| Selling Price |
Rs. 26 per basket |
Project Cost/Capital Investment
Description |
| Preliminary & Preoperative Expns |
| Fixed Capital |
| Working Capital for 1 month(s) |
| Total Project Cost |
Means Of Finance
Description |
Percentage |
Amount Rs. |
| Promoter Contribution |
15% |
25425 |
| Subsidy /Soft Loan |
20% |
33900 |
| Term Loan |
65% |
110175 |
| Total |
|
169500 |
Financial Aspects
Fixed Capital
| (i) Land |
500 sq. mt |
6000 |
3000000 |
| (ii) Building area |
300 sq. mt. |
6000 |
1800000 |
| Total |
4800000 |
(ii) Machinery and Equipment
Description |
Qty. |
Rate |
Amount Rs. |
| Spot welding machine, 7.5 kgs capacity |
1 |
40000 |
40000 |
| Wire starting and cutting machine |
1 |
25000 |
25000 |
| Cutting machine for wire straightening |
1 |
24000 |
24000 |
| Dye set of six attachments and of diff. |
1 |
15000 |
15000 |
| Electric Oven |
1 |
60000 |
60000 |
| Other Equipment |
1 |
40000 |
40000 |
| Total |
|
|
204000 |
Working Capital
i. Salaries & Wages (per month)
Description |
Nos. |
Sal/mon. |
Amount Rs. |
| Supervisor/Entrepreneur |
1 |
10000 |
10000 |
| Skilled Labour |
3 |
5000 |
15000 |
| Worker |
2 |
3000 |
6000 |
| Total |
|
|
31000 |
ii. Raw Material (per month)
Description |
Unit |
Qty. |
Rate |
Amount Rs. |
| Wire of 8 to 10 yards |
Kgs |
1800 |
40 |
72000 |
| Plastic Coating Powder |
Kgs |
1 |
9000 |
9000 |
| Electrodes Total |
Kgs |
1 |
|
0 |
| Total |
|
|
|
81000 |
iii. Utilities (per month)
Description |
Unit |
Amount Rs. |
| Power |
LS |
3000 |
| Water |
LS |
250 |
| Total |
|
3250 |
iv. Other Expenses (per month)
Description |
Amount |
| Postage & Stationery Expenses |
2000 |
| Transportation Expenses |
3000 |
| Advertisement Expenses |
2000 |
| Consumable Stores |
3000 |
| Miscellaneous Expenses |
2000 |
| Total |
12000 |
v. Total Working Capital (per month)
Description |
Amount Rs. |
| Salaries and Wages |
31000 |
| Raw Material |
81000 |
| Utilities |
3250 |
| Other Expenses |
12000 |
| Total |
127250 |
Total Capital Investment
| Fixed capital |
5004000 |
| Working Capital for 2 month |
254500 |
| Total (TCI) |
5258500 |
Cost of Production (Per Annum)
Description |
Amount Rs. |
| Total Working Capital |
1527000 |
| Depreciation @ 15% |
30600 |
| Depreciation on Building |
240000 |
| Interest @ 14% |
736190 |
| Total |
2533790 |
Turnover (Per Year)
Description |
Unit |
Qty. |
Rate Rs. |
Amount Rs. |
| Wire baskets mfg |
Baskets |
36000 |
75 |
2700000 |
| Total |
|
|
|
2700000 |
Fixed Cost (Per Year)
Description |
Amount Rs |
| Depreciation |
270600 |
| Interest |
736190 |
| Salaries & Wages @ 40% |
148800 |
| Other Expenses incl. Utilities @40% |
73200 |
| Total |
1228790 |
Profit Analysis & Ratios
| Net Profit |
1471210 |
| Percentage of Profit on Sales |
54.49 |
| Percentage of Return on Investment |
27.98 |
| Break Even Point |
45.51 |
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
