ACKNOWLEDGEMENT

I owe my sincere and heartiest gratitude to those respondents whose co-operation and

suggestions have given me support to accomplish the project report timely and

successfully.

The present work is an effort to throw some light on “Plywood Manufacturing

Industry”. The work would not have been possible to come to the present shape without

the able guidance, supervision and help to me by number of people.

I owe my thanks to Dr. (Mrs.) M.S.Deshpspande Without her guidance it would have

been impossible to complete the project. I owe my sincere thanks to her for this esteem

guidance, keen interest, constant inspiration and valuable guidance.

I am highly obliged to Dr. J.V.Joshi sir Head of the Department for providing necessary

facilities and valuable guidance time to time.

I take this opportunity to thanks Dr (Mrs.) L.N.Laturkar madam and the entire faculty

member o the SCMS family for their cooperation and guidance for the completion of the

project.

I would also like to thank my friends Santosh, Jitu, Sandip, Umesh, Arif, Mukesh, Ishan,

Deepak. They helped me to keep myself jolly during my project.

Dated: SANJAY HINGANKAR

1

Project Profiles at a glance

1. Name of the Project: “Plywood Manufacturing Industry”

2 .Location within State/Country: MIDC, Hingoli.

Dist: Hingoli

State: Maharashtra.

3 .Nearest Rail, Road & Sea

Connection : i) Nearest Rail Head for units to be located at

Hingoli District Head quarter

ii) Nearest Road connection for all the units

are State Highway

iii) Nearest Sea connection for all units is

Mumbai Sea Port

4 .Estimated Capital Cost of the

Project : The total project cost is Rs.1,46,49,500.00

5 .Capital Equipment : (i) Power operated machines like Hydraulic Hot

. Press, Steam Boiler.

:

6 .Raw materials : Hardwood, Softwood & Adhesives.

7 .Environment Impact : The project is an environment friendly activity.

There will be no ecological imbalance and

Pollution hazard to the localities because of the

project. The project may help in checking the

destruction of timber forest.

8 .Foreign Exchange Cost component: Nil

10. Policy Framework applicable to the

2

Project : State Industrial Policy, Industrial Policy of

NER & Government of India are applicable to

the above project, vision 20-20 (development of the

NE states)

12. Time-frame for selection &

completion of selection of project : Within a period of 12(Twelve) months.

13. Government Incentive packages

applicable to the Project : Capital investment, interest, power, transport

subsidies, etc.

2) State Government Guarantee

14. Other General Information : The competitive advantage of the project over

other Plywood production units in the

State shall be in terms of volume of

production, quality and price because of the

installation of improved type machinery.

Advantages over other units are due to the

availability of skilled manpower, adequate

Raw materials resources as well as high market

potentials, security environment to be created

by the State Government especially for the

above project etc.

3

INTRODUCTION:-

Hingoli is a place on the border of Marathwada and Vidarbha region. Marathwada is rich

of agriculture product like Soyabin, cotton and Turdal. Vidharbha is rich of Rice.

Vidarbha region is also attached to Madhya Pradesh which has Large Forest area. The

Hardwood and Softwood is the raw material required for this project. The Hardwood i.e.

raw material of trees will be bought from Vadarbha. Softwood will be collected from

both Marathwada and Vidarbha. The softwood is Rice husk, Cotton waste and Soyabin

waste. The raw material is easily available in this region and hence, the project location is

selected here. Hingoli is connected to south Maharastra and east Maharastra by means of

roads and railway, Hence easy transportation.

The making of Plywood is the most universal spread manufacturing process all over. The

process includes making log, cutting, vineer preparation and plywood sheets. The high

quality adhesive is being used.

This industry has carved for itself an important place among the Plywoods of the State. It

would provides fulltime employment to the labors and skilled workers. This will help the

rural people of this region as they are getting paid for the agriculture waste instead of

burning it and development of both agriculture and industry as well.

4

VISION OF THE PROJECT:-

“Customer Satisfaction’- by providing high quality in a professional and

reliable manner through merit shop philosophy, allowing it to be competitive, adaptable

and creative”

MISSION OF THE PROJECT:-

To provide jobs to rural skillful employees.

To develop the economy of the region.

To popular eco friendly products.

To obtain maximum growth with minimum investment.

To use the modern technology to the plywood industries.

5

SELECTION OF THE PROJECTS:-

The main reasons that encourage me to select this project are given as follows as

1. The main raw materials for the industry, i.e. softwood and hardwood of various

types are abundantly available throughout the State.

2. Government policies beneficial to this project.

3. I am interested in the plywood manufacturing industry.

4. The local market not any plywood industry.

5. Today plywood demand increases day by day.

6. The industry has considerable scope for development and various new products

suited to modern tastes can be manufactured out of Trees.

6

History and Origin

Plywood has it origins in laminating veneers around 3,500 years ago in Egypt during the days of the Pharoahs. The early Greeks and Romans also used veneers and plywood mainly for furniture. From the mid 1800’s ‘modern’ plywoods were utilised in pianos, furniture and tea chests. Plywood came of age as a versatile construction material in the 1930’s when water resistant resins were used as glues giving plywood longevity and integrity. Australian plywood manufacture commenced in Melbourne in 1911 but the two plants closed after a few years of operation. Around 1914 plywood manufacture commenced in Woolloongabba, Brisbane. Thereafter Brisbane became the main centre of plywood manufacturing activity with the 10 mills producing about two thirds of all Australian production, thus making this city the logical base for the Plywood Association of Australia. The Australian industry expanded around the country after the second World War to the stage where in 1960 there were 63 mills. Around this time the local industry was under threat from imports, and other panel products, so the industry invested heavily in CSIRO research to better understand the manufacturing process and improve productivity. In 1960 the mills used timber from indigenous forests with around 80% of the production being for interior use. Today, the nine, on average much larger mills use mainly plantation timber with around 90% of the plywood produced being for structural applications. As Australasian plywood can be used in critical structural applications where the costs of failure can be high, there is a requirement for high reliability combined with consistent quality. This is provided by the Plywood Association of Australia’s third party audited, process control based, industry wide quality control program. Thus the PAA quality brand permits easy identification and assures the customer the plywood is a quality product and meets the relevant Standard.

7

MARKET POTENTIAL AND COMPETITION

Plywood products always have its demand in the market. The products are eco- friendly

and cheap as compared to the other plastic products. The different Plywood products

have different categories of customers. The Plywood products like furniture generally

popular among the middle class people of the regions.

MY POTENTIAL CUSTOMERS ARE AS FOLOWS AS

Furniture manufacturing company

Retailers of the Plywood sheets

Government institutions like Railway, State Transport

COMPETITOR

Shalini plywood pvt. Ltd. Waluj, Auarangabad.

Lakshmi plywood, Nagpur.

Kitply Industries Ltd , Nagpur.

COMPANY LOGO:

8

MARKETING CHANNELS:-

The marketing channels plays important role in the distribution of the products to reach

the potential customers. The selection of the marketing channels is also important .so

choose my marketing channels as follows as

Wholesaler & Distributor:

These People working as a company partner because they are giving place

our product.

Industrial Merchants:

The registration with the trading companies like India mart will also be the

marketing channel.

9

LEGAL FORMALITIES

for the starting a SSI unit , every unit has some legal formalities to complete for starting a

new business or to dissolve any industries. Here depicted some legal aspects which are

necessary to be completed by entrepreneurs.

1. No objection letters DIC.

2. Approval letter from DIC.

3. Power sanction assurance letter from Mahavitaran

4. Certification of water supply.

5. Application for Telephone.

6. S.S.I Unit Registration.

7. Octroi Exemption letter from Municipal council.

8. Registration for sales Tax.

9. Registration of central Sales Tax.

10. Application for loan to SBI & IDBI, Hingoli

11. Certificate from industrial pollution Office.

10

Plant location:-The plant is located at following address

MIDC,Hingoli

TALUKA –Hingoli

DIST –Hingoli

STATE- Maharashtra,PIN-431513

The factors influenced to choose the plant layout are as follows as

1. Availability of raw materials :-

Hardwood, Softwood is easily available nearby villages at very cheap rate. The

transportation cost is also very less.

2. Availability 0f skilful labour force :-

The craftsmen are easily available as many of the worker engaged in this business

for years together.

3. Good transportation facilities :-

The place is well connected to the State Highways .

The place only 10 K.M away from the Hingoli railway station.

4. Availability of the power and water supply:

The power supplied by the Mahavitaran, at the rate of Rs.6 for the commercial

use.

The water is available from the natural sources like ponds and rivers.

11

PICTORIAL REPRESENTATION OF THE PLANT LAY OUT:-

Entry gate Corporate office

I

Workshop

Inventories store

Canteen scrapsroom

12

Toilets

WorkshopCcccccccc

Raw Materials

The outer layers of plywood are known respectively as the face and the back. The face is

the surface that is to be used or seen, while the back remains unused or hidden. The

center layer is known as the core. In plywoods with five or more plies, the inter-mediate

layers are known as the crossbands.

Plywood may be made from hardwoods, softwoods, or a combination of the two. Some

common hardwoods include ash, maple, mahogany, oak, and teak. The most common

softwood used to make plywood in the United States is Douglas fir, although several

varieties of pine, cedar, spruce, and redwood are also used.

Composite plywood has a core made of particleboard or solid lumber pieces joined edge

to edge. It is finished with a plywood veneer face and back. Composite plywood is used

where very thick sheets are needed.

The type of adhesive used to bond the layers of wood together depends on the specific

application for the finished plywood. Softwood plywood sheets designed for installation

on the exterior of a structure usually use a phenol-formaldehyde resin as an adhesive

because of its excellent strength and resistance to moisture. Softwood plywood sheets

designed for installation on the interior of a structure may use a blood protein or a

soybean protein adhesive, although most softwood interior sheets are now made with the

same phenol-formaldehyde resin used for exterior sheets. Hardwood plywood used for

interior applications and in the construction of furniture usually is made with a urea-

formaldehyde resin.

Some applications require plywood sheets that have a thin layer of plastic, metal, or

resin-impregnated paper or fabric bonded to either the face or back (or both) to give the

outer surface additional resistance to moisture and abrasion or to improve its paint-

holding properties. Such plywood is called overlaid plywood and is commonly used in

the construction, transportation, and agricultural industries.

13

Other plywood sheets may be coated with a liquid stain to give the surfaces a finished

appearance, or may be treated with various chemicals to improve the plywood's flame

resistance or resistance to decay.

Plywood Classification and Grading

There are two broad classes of plywood, each with its own grading system.

One class is known as construction and industrial. Plywoods in this class are used

primarily for their strength and are rated by their exposure capability and the grade of

veneer used on the face and back. Exposure capability may be interior or exterior,

depending on the type of glue. Veneer grades may be N, A, B, C, or D. N grade has very

few surface defects, while D grade may have numerous knots and splits. For example,

plywood used for subflooring in a house is rated "Interior C-D". This means it has a C

face with a D back, and the glue is suitable for use in protected locations. The inner plies

of all construction and industrial plywood are made from grade C or D veneer, no matter

what the rating.

The other class of plywood is known as hardwood and decorative. Plywoods in this class

are used primarily for their appearance and are graded in descending order of resistance

to moisture as Technical (Exterior), Type I (Exterior), Type II (Interior), and Type III

(Interior). Their face veneers are virtually free of defects.

Sizes

Plywood sheets range in thickness from. 06 in (1.6 mm) to 3.0 in (76 mm). The most

common thicknesses are in the 0.25 in (6.4 mm) to 0.75 in (19.0 mm) range. Although

the core, the crossbands, and the face and back of a sheet of plywood may be made of

different thickness veneers, the thickness of each must balance around the center. For

example, the face and back must be of equal thickness. Likewise the top and bottom

crossbands must be equal.

14

The most common size for plywood sheets used in building construction is 4 ft (1.2 m)

wide by 8 ft (2.4 m) long. Other common widths are 3 ft (0.9 m) and 5 ft (1.5 m). Lengths

vary from 8 ft (2.4 m) to 12 ft (3.6 m) in 1 ft (0.3 m) increments. Special applications like

boat building may require larger sheets.

The Manufacturing Process

The trees used to make plywood are generally smaller in diameter than those used to

make lumber. In most cases, they have been planted and grown in areas owned by the

plywood company. These areas are carefully managed to maximize tree growth and

minimize damage from insects or fire.

Here is a typical sequence of operations for processing trees into standard 4 ft by 8 ft (1.2

m by 2.4 m) plywood sheets:

The logs are first debarked and then cut into peeler blocks. In order to cut the blocks into

strips of veneer, they are first soaked and then peeled into strips.

Felling the trees

Selected trees in an area are marked as being ready to be cut down, or felled. The

felling may be done with gasoline-powered chain saws or with large hydraulic shears

mounted on the front of wheeled vehicles called fellers. The limbs are removed from

the fallen trees with chain saws.

15

The trimmed tree trunks, or logs, are dragged to a loading area by wheeled vehicles

called skidders. The logs are cut to length and are loaded on trucks for the trip to the

plywood mill, where they are stacked in long piles known as log decks.

Preparing the logs

As logs are needed, they are picked up from the log decks by rubber-tired loaders

and placed on a chain conveyor that brings them to the debarking machine. This

machine removes the bark, either with sharp-toothed grinding wheels or with jets

of high-pressure water, while the log is slowly rotated about its long axis.

The debarked logs are carried into the mill on a chain conveyor where a huge

circular saw cuts them into sections about 8 ft-4 in (2.5 m) to 8 ft-6 in (2.6 m)

long, suitable for making standard 8 ft (2.4 m) long sheets. These log sections are

known as peeler blocks.

Making the veneer

Before the veneer can be cut, the peeler blocks must be heated and soaked to

soften the wood. The blocks may be steamed or immersed in hot water. This

process takes 12-40 hours depending on the type of wood, the diameter of the

block, and other factors.

The heated peeler blocks are then transported to the peeler lathe, where they are

automatically aligned and fed into the lathe one at a time. As the lathe rotates the

block rapidly about its long axis, a full-length knife blade peels a continuous sheet

of veneer from the surface of the spinning block at a rate of 300-800 ft/min (90-

240 m/min). When the diameter of the block is reduced to about 3-4 in (230-305

mm), the remaining piece of wood, known as the peeler core, is ejected from the

lathe and a new peeler block is fed into place.

The long sheet of veneer emerging from / the peeler lathe may be processed

immediately, or it may be stored in long, multiple-level trays or wound onto rolls.

In any case, the next process involves cutting the veneer into usable widths,

usually about 4 ft-6 in (1.4 m), for making standard 4 ft (1.2 m) wide plywood

sheets. At the same time, optical scanners look for sections with unacceptable

defects, and these are clipped out, leaving less than standard width pieces of

veneer.

16

The wet strips of veneer are wound into a roll, while an optical scanner detects

any unacceptable defects in the wood. Once dried the veneer is graded and

stacked. Selected sections of veneer are glued together. A hot press is used to seal

the veneer into one solid piece of plywood, which will be trimmed and sanded

before being stamped with its appropriate grade.

The sections of veneer are then sorted and stacked according to grade. This may

be done manually, or it may be done automatically using optical scanners.

The sorted sections are fed into a dryer to reduce their moisture content and allow

them to shrink before they are glued together. Most plywood mills use a

mechanical dryer in which the pieces move continuously through a heated

chamber. In some dryers, jets of high-velocity, heated air are blown across the

surface of the pieces to speed the drying process.

As the sections of veneer emerge from the dryer, they are stacked according to

grade. Underwidth sections have additional veneer spliced on with tape or glue to

make pieces suitable for use in the interior layers where appearance and strength

are less important.

17

Those sections of veneer that will be installed crossways—the core in three-ply

sheets, or the crossbands in five-ply sheets—are cut into lengths of about 4 ft-3 in

(1.3 m).

Forming the plywood sheets

When the appropriate sections of veneer are assembled for a particular run of

plywood, the process of laying up and gluing the pieces together begins. This may

be done manually or semi-automatically with machines. In the simplest case of

three-ply sheets, the back veneer is laid flat and is run through a glue spreader,

which applies a layer of glue to the upper surface. The short sections of core

veneer are then laid crossways on top of the glued back, and the whole sheet is

run through the glue spreader a second time. Finally, the face veneer is laid on top

of the glued core, and the sheet is stacked with other sheets waiting to go into the

press.

The glued sheets are loaded into a multiple-opening hot press. presses can handle

20-40 sheets at a time, with each sheet loaded in a separate slot. When all the

sheets are loaded, the press squeezes them together under a pressure of about 110-

200 psi (7.6-13.8 bar), while at the same time heating them to a temperature of

about 230-315° F (109.9-157.2° C). The pressure assures good contact between

the layers of veneer, and the heat causes the glue to cure properly for maximum

strength. After a period of 2-7 minutes, the press is opened and the sheets are

unloaded.

The rough sheets then pass through a set of saws, which trim them to their final

width and length. Higher grade sheets pass through a set of 4 ft (1.2 m) wide belt

sanders, which sand both the face and back. Intermediate grade sheets are

manually spot sanded to clean up rough areas. Some sheets are run through a set

of circular saw blades, which cut shallow grooves in the face to give the plywood

a textured appearance. After a final inspection, any remaining defects are

repaired.

The finished sheets are stamped with a grade-trademark that gives the buyer

information about the exposure rating, grade, mill number, and other factors.

Sheets of the same grade-trademark are strapped together in stacks and moved to

the warehouse to await shipment.

18

PRODUCT:

1) PLYWOOD SHEETS:

FUTURE PLANNING FOR THE EXPANSION:-

Even though plywood makes fairly efficient use of trees—essentially taking them apart

and putting them back together in a stronger, more usable configuration—there is still

19

considerable waste inherent in the manufacturing process. In most cases, only about 50-

75% of the usable volume of wood in a tree is converted into plywood. To improve this

figure, several new products are under development.

One new product is called oriented strand board, which is made by shredding the entire

log into strands, rather than peeling a veneer from the log and discarding the core. The

strands are mixed with an adhesive and compressed into layers with the grain running in

one direction. These compressed layers are then oriented at right angles to each other,

like plywood, and are bonded together. Oriented strand board is as strong as plywood and

costs slightly less.

List of the machine to be used in the manufacturing process and their cost of

purchase:-

General Plywood Processing Machine

20

1. Hydraulic Hot Press Machine:

'BS' Make, Hydraulically operated steam/oil heated multi daylight Hot

Press in upclosing frame. The main body is fabricated from M.S. Plate and

Hot Platens are also fabricated from solid plate as well as complete

with Automatic Powerpack, steam connection pipes and other necessary

parts and components.

Rs. 55,50,000

2) Steam Boiler :

3) Chimney(30m) with ladder:

21

v

4) Heat Recovery unit (Air Pre-Heater):

.

5) Glue mixer :

22

SOURCES OF FINANCE:-

23

Supply of finance is very important factor in the establishment of an enterprise is old.

Finance id the life line of the business. Finance e deals with the arrangements of the

sufficient capital for the smooth run of the organization. Following are the certain sources

of the scheme of the finance.

A) OWN CAPITAL:-

According to the rules set up by various financial institution 25% to 35% of the capital

should be the own investment of the entrepreneur. 30% of the project cost will be

financed by the promoter himself.

B) TERM LOAN FROM THE COMMERCIAL BANKS:

State Bank Of India, Hingoli branch, lend Rs. 51,20,000/-at the rate 11%

C) TERM LOANS FROM THE NATINAL SMALL INDUSTRIES

CORPORATION:-

NSIC provides loans at 8.5% to small scale industries for the development of the working

capital requirement.

COST OF THE PROJECT

SR.NO PARTICULARS AMOUNT

01 Land 8,00,000.00

02 Site development 45,000.00

03 Building 20,00,000.00

03 Plant and machinery 79,00,000.00

04 Furniture and Misc 1,75,000.00

05 Preliminary and preoperative exp. 77,000.00

06 Depreciation 9,07,500.00

06 Working capital (3months) 27,45,000.00

TOTAL 1,46,49,500.00

24

MEANS OF FINANCE:

SR.NO RATE OF

INTEREST

PARTICULARS AMOUNT

01 NIL Promoters Capital 43,94,850.00

02 11% State Bank Of India 51,20,000.00

03 8.5% NSICL 51,34,650.00

TOTAL 1,46,49,500.00

TOTAL FIXED CAPITAL:

SR.NO PARTICULARS AMOUNT

01 Land 8,00,000.00

02 Site development 45,000.00

03 Building 20,00,000.00

03 Plant and machinery 79,00,000.00

04 Furniture and Misc 1,75,000.00

05 Preliminary and preoperative exp. 77,000.00

06 Depreciation 9,07,500.00

TOTAL 1,23,57,000.00

1. LAND:

25

Sr. No Particulars Price/Acre Amount

01 Land area

(2 acre)

4,00,000.00 8,00,000.00

2. SITE DEVELOPMENT

Sr. no Particulars Cost of the

items

Amount

O1

02

03

04

Filling of the land

Fencing

Gardening

Gates

13,000.00

12,000.00

10,000.00

10,000.00

13,000.00

12,000.00

10,000.00

10,000.00

Total 45,000.00 45,000.00

3. BUILDING

Sr. no Particulars Cost of the

items

Amount

01 Corporate office 3,20,000.00 3,20,000.00

02 Show room 3,50,000.00 3,50,000.00

03 Work shop 7,80,000.00 7,80,000.00

04 Toilets 1,50,000.00 1,50,000.00

05 Store room 4,00,000.00 4,00,000.00

Total 20,00,000.00 20,00,000,00

4. PLANT AND MACHINERY :

Sr. no Particulars Quantity Amount

26

01 Hydrualic Hot press

machine

01 55,50,000.00

02 Steam Boiler 01 13,75,000.00

03 Chimney(30m) with

ladder

01 3,75,000.00

04 Heat Recovery unit (Air

Pre-Heater)

01 1,80,000.00

05 Multi Cyclone Dust

Collector

01 1,75,000.00

06 Pressure Reducing

Station

01 2,25,000.00

Add Transportation 10,000.00

Installation 10,000.00

Total cost 79,00,000.00

5. PRELIMINARY AND PRE.OPERATIVE EXPENSES :-

Sr. No Particulars Amount

01 Deposit for power ,water , telephone 25,000.00

02 Loan application process fee 12,000.00

03 Deposit for internet 3,000.00

04 Legal stamp duty and registration 20,000.00

05 Travelling 10,000.00

06 Consultancy 7,000.00

Total 77,000.00

5.FURNITURE AND MICELLANOUS ASSETS:-

sr. no Particulars Quantity Amount

27

O1 Furniture

Office chairs 8set 24,000.00

Almirah 8 32,000.00

Racks 20 40,000.00

Tables 2 8,000.00

Computer and accessories 1 30,000.00

Fans 8 8,000.00

Sofa 1 18,000.00

02 Work shed ------- 15,000.00

Total 1,75,000.00

6.DEPRECIATION (P.A)

Sr. No Type of assets Cost of assets Rate of

dep.

Amount

01 Plant and machinery 79,00,000.00 10% 7,90,000.00

02 Furniture 1,75,000,00 10% 17,500.00

03 Building 20,00,000.00 5% 1, 00,000.00

Total 1,09,75,000.00 9,07,500.00

WORKING CAPITAL REQUIREMENT:-

Sr. no Particulars 1 month 3 month

28

01 Raw materials 9,15,000.00 27,45,000.00

02 Salary and wages 1,35,500.00 4,06,500.00

03 Other manufacturing

expenses

12,000.00 36,000.00

04 Power and fuels 16,000.00 48,000.00

05 Selling and office

expenses

17000.00 2,04,000.00

Total 10,95,500.00 32,86,500.00

1. RAW MATERIALS:-

Sr.No Particulars No. of

Tons/month

price /piece

(Rs)

Cost /month Cost /year

01 Softwood 250 2000 5,00,000.00 60,00,000.00

02 Hardwood 50 3000 1,75,000.00 21,00,000.00

03 Adhesive 2 1,20,000 2,40,00.00 28,80,000.00

Total 9,15,000.00 1,09,80,000.00

29

2. SALARY AND WAGES:-

Sr.no Name of the

post

No

per

post

Salary/head Salaries/month Salaries/year

01 Manager 01 15,000.00 15,000.00 1,80,000.00

02 Accountant 01 8,000.00 8,000.00 96,000.00

03 Office staff 02 5,000.00 10,000.00 1,20,000.00

04 Chemist 01 4,500.00 4,500.00 54,000.00

05 Supervisor 01 4,000.00 4,000.00 48,000.00

06 Machine

Operator

06 3,200.00 38,400.00 4,60,800.00

07 Skilled labour 06 2,700.00 16,200.00 1,94,400.00

08 Unskilled

worker

06 2,200 26,400.00 3,16,800.00

09 Women

Mazdoor

05 1,600 8,000.00 96,000.00

10 Mechanic-

cum

Electrician

02 2,500 5,000.00 60,000.00

Total 31 1,35,500.00 16,26,000.00

3. POWER AND FUELS:-

30

Sr.No Particulars P.M. P.A.

01 Fuels 7,000.00 84,000.00

02 Power 9,000.00 1,08,000.00

Total 16,000.00 1,92,000.00

4. OTHER MANUFACTURING EXPENSES :-

Sr.No Particulars P.M. P.A.

01 Paints 4,000.00 48,000.00

02 Packaging materials 2,000.00 24,000.00

03 Repairing of the machines 4,000.00 48,000.00

Total 12,000.00 1,44,000.00

5. OFFICE,SELLING, DISTRIBUTION EXPENSES :

Sr.No Particulars P.M. P.A.

01 Postage and stationeries 3,000.00 36,000.00

02 Telephone bills/internets 4,000.00 48,000.00

03 Transportation 10,000.00 1,20,000.00

Total 17,000.00 9,87,000.00

VARIABLE COST:

Sr.No Particulars P.M. P.A.

01 Raw materials(100%) 9,15,000.00 1,09,80,000.00

02 Wages (80%) 1,08,400.00 13,00,800.00

31

03 Power and fuels(90%) 14,400.00 1,72,800.00

04 0ther manufacturing

expense(100%)

12000.00 1,44,000.00

05 Interest w/c loans (80%) 37,547.00 4,88,640.00

06 Interest term loans (20%) 7,274.00 94,392.00

07 Selling and administrative

expenses (100%)

17,000.00 2,04,000.00

Total 11,11,621.00 1,33,39,452.00

FIXED COST:-

Sr.No Particulars P.M. P.A.

01 Wages (20%) 27,100.00 3,25,200.00

02 Power and fuels(10%) 1,600.00 19,200.00

03 Interest on w/c (20%) 9,386.00 1,12,632.00

04 Interest on term loans (80%) 29,096.00 3,49,152.00

05 Office, selling , distribution

expenses (90%)

15,300.00 1,83,600.00

06 Depreciation(100%) 75,625.00 9,07,500.00

Total 1,58,107.00 18,97,284.00

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COST OF THE PRODUCTION:-

Sr. no Particulars 1 month 1 year

01 Raw materials 9,15,000.00 1,09,80,000.00

02 Salary and wages 1,35,500.00 16,26,000.00

03 Other manufacturing

expenses

12,000.00 1,44,000.00

04 Consumables 12,000.00 1,44,000.00

05 Repairing of machine 20,000.00 2,40,000,00

06 Depreciation @10%

07 Plant and machineries 65,833.00 7,90,000.00

Furniture 1460.00 17,500.00

Total 11,49,793.00 1,37,97,516.00

ESTIMATED SALE:-

Sr. no Items No items

sold

/month

Price

/item

Monthy

sales

Annually sales

01 6mm plywood sheets

3*6 21 720 15,120.00 1,81,440.00

3*8 34 960 32,640.00 3,91,6800.00

4*6 50 960 48,000.00 5,76,000.00

4*8 5

0

1280 64,000.00 7,68,000.00

TOTAL 165 1,59,760.00 19,17,120.00

02 8 mm plywood sheet

33

3*6 30 1080 32400.00 3,88,800.00

3*8 44 1440 63360.00 7,68,000.00

4*6 67 1440 96480.00 11,57,760.00

4*8 66 1920 1,26,720.00 15,20,640.00

TOTAL 207 3,19,600.00 38,35,200.00

03 12 mm plywood sheet

3*6 44 1440 63,360.00 7,60,320.00

3*8 66 1920 1,26,720.00 15,20,640.00

4*6 100 1920 1,92,000.00 23,04,000.00

4*8 100 2560 2,56,000.00 30,72,000.00

TOTAL 300 6,38,080.00 76,56,960.00

04 18 mm plywood sheet

3*6 25 2160 54,000.00 6,48,000.00

3*8 33 2880 95,040.00 11,40,480.00

4*6 50 2880 1,44,000.00 17,28,000.00

4*8 50 3840 1,92,000.00 23,04,000.00

TOTAL 58,20,480.00

TOTAL 1,92,29,760

PROFITABILITY:-

Sr.no Particulars P.M P.A.

01 Sales 16,02,480.00 1,92,29,760.00

02 Less Cost of production 11,49,793.00 1,37,97,516.00

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03 Gross

profit

4,52,687.00 54,32,244.00

04 Less Office, selling,

distribution

17,000.00 2,04,000.00

05 Less Interest on loan

@11% (PNB) 46,933.00 5,63,196.00

@8.5%(SIDC) 36,370.00 4,36,440.00

06 Net profit 3,52,384.00 42,28,608.00

BREAK EVEN POINT :

Formula used

FIXED COST

B.E.P= _______________

CONTRIBUTION

CONTRIBUTION=SALES-VARIABLE COST

CONTRIBUTION=Rs 1, 92, 29,760.00-1, 33, 39,452.00

=58, 90,308.00

18, 97,284.00

B.E.P= _____________ X100 =32.21%

58, 90, 308.00

35