1st BCOM -D

INDUSTRYLEGAL FORMALITIES

industry

Primaryindustry

Secondary Industry

Genetic industries

Extractive industries

Construction industries

Manufacturing industries.

Assembly line industries

Analytical industries

Synthetic industries

Processing industries

In the words of S.R Davar, ” Industry is a branch of commerce concerned with the production of wealth.”

Meaning: Industry refers to that part of business activity which is concerned with raising (purchasing), production, processing or fabricating of products.Industry generally deals with production of goods and services in exchange of reasonable profit.

Features: Industries are concerned with the aim of raising huge

amount of capital as it is concerned with large scale production of different products.

It involves keen competition with other industries. Most of the industries try to create monopoly initially

with selling their products. Different industries adopt different types of marketing

and financial strategies dealing with goods and services

Various modern technologies are used in the production of goods at different levels.

Profit motive is an important feature of industry. Industries involve an important element of risk. Industry is an economic activity, leading to the creation

of utility.  

Industries can be broadly classified into two broad categories.1. Primary industries.2. Secondary industries.

Primary industries are broadly classified into two.1.Genetic industries

2.Extractive industries.

 Secondary industries are broadly classified into two:-3.Construction industries

4.Manufacturing industries

 

 

Manufacturing industries are broadly classified into four:- Analytical industries:- Synthetic industries:- Processing industries:- Assembly-line industries:-

Establishing an industrial enterprise.

Establishing an industrial enterprise requires proper planning. An industrialist if he plans for today cannot flourish tomorrow, because of dynamic economy where changes take place everyday. Therefore an entrepreneur must be prepared to face any changes with a systematic planning in advance as far as setting up an industrial enterprise is concerned ,planning includes various factors such as selection of site, size etc. it also includes certain managerial decisions like determination of objective, financing etc.

Problems of establishing an industrial enterprise:1.Developing of business idea or opportunity.

2.Detailed study of business idea.

3.Determination of objectives.4.Product analysis and market survey.

5.Selecting form of organization.

Location:(selection of site) Access to raw materials. Fuel, power and water Transportation and communication

facilities. Nearness to market. Government rules and regulation

Plant layout:- It is a technique of locating machines, process and plan services within the factory in order to achieve maximum output of high quality at the lowest possible cost of production. There are different types of plant layouts:-

A) Process plant layout: Under this type all the machines doing a particular type of work or process are arranged together in a separate department.

B) Product plant layout: Under this type all the machines doing the various operations are arranged in a line in the order which they will be used for production.

C) Mixed plant layout: Under this type both process layout and product layout are mixed. This layout has both the advantages of process and product plant layout.

 Principles of plant layout:

Principle of minimum movement. Principle of sequence. Principle of usage. Principle of compactness. Principle of safety. Principle of satisfaction. Principle of flexibility. Principle of minimum

investment. Principle of overall integration.

Procurement of machineryIt is a very important factor of production in a manufacturing organization. There is a need for procuring right type of machinery as it results in producing better quality products at reasonable rates. It is a comprehensive job as it involves certain factors which are taken into consideration, while procuring machinery that is cost and durability of machines, its quality and performance.Lighting

There is always a need for sufficient artificial and natural lighting or smooth and economical operations of an industry. A better lighting provided in the industry encourages the workers to work harder and contribute effectively and efficiently for increasing productivity. It also helps on avoiding wastages, industrial accidents etc. Ventilation

It refers to the supply of free movement of air from outside to inside and vice versa in an industry. By providing proper ventilation facilities in various departments of an industry, it will protect the health of the employees.Air conditioning

It depends on the nature of the industry to install air conditioning facility according to the product which an industry manufactures. Better air conditioning facilities will raise the comfort level among the employees as it controls the temperature and humidity and distributes pure air by artificial means. 

All the above mentioned factors has a great influence in setting up an industrial enterprise.

CUBE PACKAGING COMPANY OVERVIEW

1st BCOM -D

CUBE PACKAGING is a small scale industry (SSI) which manufactures corrugated carton boxes. It’s a partnership firm. Our products are eco-friendly, highly durable, easy to use and recycle, require minimum space and have standard load capacity.

 

PARTNERSHIP

Cube Packaging consists of FOUR partners who share their profits and losses equally. Each of the partners contributes Rs20 Lakhs each towards the Partnership as capital. The working of partnership will be according to the Deed.

 CAPITAL REQUIREMENT

 Total Capital Required: Rs. 1 CrorePlant and Machinery AND Land and Building. Rs. 50 Lakhs (Approximately )Working Capital Requirements: 50 Lakhs The Capital contributed by the Partners, i.e. Rs. 20 Lakhs each, will be utilized for the above and the remaining Rs. 20 Lakhs will be funded through Bank Overdraft.

  AREA OF LOCATION

The company will be established in Bangalore. It will be located in Mahadevpura Industrial Area, Whitefield Road. This location is best suited because of the good transportation facility, nearness to the source of raw material and since it is an industrial area, labourers are available in plenty.

PLANT LAYOUTA single storey building is preferable. Since there are heavy machinery, multi storied building may not prove to be safe. Since the production process carries on a chain form, product or line method is applied. It helps in easy supervision, minimum material handling and smoothens production function. (Refer ANNEXURE 1)

 

RAW MATERIALS AND THEIR SUPPLIES Various raw materials required for production of Carton Boxes are Kraft paper (paper Reel), Corrugation gum, pasting gum, stitching coil Cali cloth, printing ink, screen etc. There are many brands for Kraft paper. But we will be using Vinayaka, Jodani and Vijayanand Brand. The raw materials are available in the local market. Thus we will have continuous supply of raw materials.

 

TARGET CUSTOMERS Garments and apparels – 40% Logistics - 20% Engineering Goods - 10% Exporters - 20% Art and Crafts - 10%

 

LABOURERS We require skilled as well as unskilled laborers. We do not pay daily wages but pay salary to all. Training will be given to each laborer about the use of machines and their safety precautions.

 

MACHINES Manufactures of corrugated carton box require various machines for various purposes. For this purpose Rs. 50 Lakhs is set aside foe machinery and plant. Machines can be purchased from Indian or foreign markets. The machinery available in foreign market is automatic plant which requires an investment of Rs. 5 Crore. Thus we restrict ourselves to the Indian Market Machinery. The machinery that we purchase under our budget helps in conversion of 150 tons of Kraft paper per Year.

SPARE MAINTANENCE

Maintenance of spares and machines is very important for smooth functioning as well as long duration of the machine. It can be done in two ways i.e. Hiring Method and AMC (Annual Maintenance Cost) Method. Under AMC method, a maintenance company will be given the contract of maintaining the machinery. Thus we chose this system/ Method.

  WORKING OF MACHINES

The Production Process follows LINE or PRODUCT LAYOUT. First the Raw Material is loaded (i.e. paper reel) into Corrugation machine where due to heat Flute is formed. Then the next machine auto cutter cuts the sheet into required size. Then the top sheet is printed in the Flexo printing machine. The number of ply is decided (in ODD numbers) and these ply are pasted in the pasting machine. After the ply is pasted they are stacked to dry for 4-5 hours. The length and height of the box are decided and Creasing is done accordingly in the rotary machine. Then the slots are made which helps in folding with the help of Slotter machine. Then the two boards are stitched with the box stitching machine. The punching machine is used for Dye cut box etc. once the box are produced they undergo natural drying. The finished goods are ready for sale.

 EXPENSESTransportation, electricity, salary, tax, depreciation, maintenance cost, etc.

  PRICEThe price of each carton box is based on two things GSM (Grams per square meter) and BF (Busting Factor). GSM refers to the weight of the box and BF refers to the strength of the paper. As the GSM and BF increases the price also increases. The price of our products range from RS.15 – RS.30.

PRICING POLICYPricing is done keeping various factors in mind. The price of Raw Material, Efficiency of Machinery, and Various Expenses involved etc. Nearly 40% of the price constitutes the Raw Material and cost of production. Nearly 40-45% constitutes the expenses for distribution.

 PROFIT MARGINAfter deducting all expenses from the revenues earned, it is estimated that 4% of the sales occurred in the year will be our profit i.e. if we sell goods worth Rs. 100, then our net profit will be Rs. 4.

  STATUTORY REQUIREMENTS Factory License Sales Tax Registration Small-Scale Industry Certificate

CORRUGATION MACHINE

FLOW DIAGRAM OF PLANT LAYOUT OF CUBE MANUFACTURING

PRIMARY DEPARTMENT

ACCOUNTS DEPARTMENT

STOCK ROOM

SECONDARY DEPARTMENT

AUTO CUTTER

PASTING MACHINE

RAW MATERIAL

BOX STICHING MACHINE

ROTATRY MACHINE

SLOTTER MACHINE

FINISHED GOODS

PUNCHING MACHINE

STAFF ROOM

annexure 1

Thank youOur products.