plastic fittings industry

8/9/2019 Plastic Fittings Industry

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Plastic Fittings Industry

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ABSTRACT

In the world of globalization we are seeing a great deal of developments through out the

world. Big Buildings, skyscrapers, corporate offices, govt. factories, houses, flats are

being made at a greater rate day by day. All of these above mentioned in any condition

need these plastic electrical fittings for efficient electrical wiring throughout the system.

General bricks are made up of used up of used up plastic but this product is made up

highly designed and plastic called as high density plastic. The use of these fittings allows

us to provide electrical wiring through every bend and corner of a room thus helping us inthe maximum purposeful utilization of electricity. These plastic made electrical fittings

are cheaper and stronger and also more resistant to temperature than the general bricks. It

is a small scale industry of cost around 35Lakhs.

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TABLE OF CONTENTS

ABSTRACT ........................................................................................................................ ii........................................................................................................................................... iii

TABLE OF CONTENTS ................................................................................................... iv1. GENERAL INFORMATION ..........................................................................................5

2. ENTREPRENUER PROFILE ......................................................................................... 6

3. TYPE OF THE PRODUCT .............................................................................................7

Marketing Strategy ...........................................................................................................7Targeted Consumer/Clients ............................................................................................. 8

4. MANUFACTURING PROCESS .................................................................................... 9

4.1 Technical Know-how availability ..............................................................................94.1 Step By Step Description of Process ......................................................................... 9

5. PRODUCTION SCHEDULE ........................................................................................ 106. DETAILS OF THE PROPOSED PROJECT .................................................................116.1 Land and Building ....................................................................................................11

6.2 Machineries/equipments ..........................................................................................11

6.3 Misc. fixed assets .....................................................................................................116.4 Preliminary and pre operative experience ................................................................12

6.5 Sales revenue ........................................................................................................... 12

6.6 Raw material ........................................................................................................... 13

6.7 Utilities .....................................................................................................................136.8 Man Power (Salaries/wages) ....................................................................................13

6.9 Repairs and maintenance ......................................................................................... 14

6.10 Selling and distribution expenses ...........................................................................146.11 Administrative expenses ....................................................................................... 14

6.12 Interest ...................................................................................................................14

6.13 Depreciation ..........................................................................................................146.14 Misc. expenses ...................................................................................................... 15

7. WORKING CAPITAL ..................................................................................................16

8. TOTAL COST OF THE PROJECT ..............................................................................17

9. MEANS OF FINANCE .................................................................................................1810. PROFITABILITY PROJECTIONS ............................................................................19

11. BREAK EVEN POINT ................................................................................................20

12. CONCLUSION ............................................................................................................21REFERENCES ..................................................................................................................22

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PLASTIC FITTING INDUSTRY

1. GENERAL INFORMATION

Name of the Entreprenuers:

Proposed Project:

This Business Plan deals in setting up a manufacturing plant which

produces electrical plastic fittings.

Major Product / Services: Our company manufactures plastic fittings from the

material called as high density plastic which is quite different from

other commercially available plastic fittings.

Proposed Locations:

Berhampur, Orissa.

Type of Organisation:

Manufacturing Organization

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2. ENTREPRENUER PROFILE

1. Name :2. Educational Qualification:Bachelor of Technology

Technical Skills:Sound knowledge in C and C++

3. Name:

Educational Qualification:Bachelor of Technology

Technical Skills: Sound knowledge in C and C++

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3. TYPE OF THE PRODUCT

1. Type of the Project :

This project deals with the production of good quality plastic

fittings.

2. Product / Services Description :

It is a manufacturing organization which produces a special kind of

plastic fittings which are more durable and resistant to high

temperature.

3. Major Consumers :

All buildings, factories, houses etc.

MARKET POTENTIAL

This is a product new to market so the public is not aware of the plus points of these

products over the normal plastic accessories. In near future it is going to have high

demand as these have higher durability, better sustainability to high temperature as they

are made up of advanced plastic called high density plastic. These products can be used

everywhere including houses, offices, and buildings in every remote corner so that

electricity through wires can be delivered.

Marketing Strategy

The marketing strategy should be in the view of the following things:

1. New user with new uses

2. Existing user with new uses

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As the product is new to market we have to look for more awareness among the people

through advertisement. The big contractors and builders should be invited for meeting

and the plus points of this type of fittings should be explained.

Targeted Consumer/Clients

The main target of this industry will be the general public as it is majority of nation who

will use this product in their houses and other includes buildings and offices of both

government sectors, public sectors.

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4. MANUFACTURING PROCESS

4.1 Technical Know-how availabilityFor this industry we are using different varieties of injection moulding machine with

different production capacities. They use different types of mould in order to produce 10-

12 different products. The whole machine comes from the company as set.

4.1 Step By Step Description of Process

Material required:

High density plastic

1. First of all we use high density plastic granules for production.

2. The machine is turned on for few minutes to get heated up.

3. The granules are then poured into the hollow cylinder

4. Then the piston is forced down into the cylinder where in a few minutes after

heating the plastic is converted into a paste

5. This paste is then put into moulds so as to form desired or respective products.

6. These moulds are then allowed to cool for a few minutes by the help of a fan .

7. Then respective product is drawn from each mould.

This is the process through which we get desired products which can be used as

electrical fittings.

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5. PRODUCTION SCHEDULE

No of Working days per annum - 300 days

No. of working shifts (8 Hrs) per day - 2 shifts

Installed capacity (say annual) - 60 lakhs

Utilized capacity (%)

1st year - 60%

2nd year - 75%

3rd year - 80%

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ENTREPRENEURSHIP PROJECT

6. DETAILS OF THE PROPOSED PROJECT

6.1 Land and Building

Sr. No Particular Area Required Total Value

1. Land Acres 1 Lakhs

2. Building 900 sqr. Ft 2,00,000

Total: 3,00,000

6.2 Machineries/equipments

Sr. No Description Nos. Required Rate Total Value

1. oz 2 14,0002. oz 2 20,000

3. 1 oz 1 12.000

4. 1 oz 2 40,000

4. 2 oz 1 50,000

Total 1,36,000

6.3 Misc. fixed assets

Sr. no. Particulars Nos. required Rates Total value

1Electrification with

Stabilzer1

64,000 64,000

64,000

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6.4 Preliminary and pre operative experience

Sr. no ParticularsAmount(Rs in

lakhs)Remarks

1. Establishment 4

6.5 Sales revenue

Year

(2007)Items

Quantity

sold/year

Rates per unit

(Rs)

Sales

realization(Rs)

Elbow 3lakhs 0.60 1,80,000

Tee 2.1Lakhs 1 2,10,000

Press saddle 1lakhs 0.40 40,000Bar saddle 3lakhs 0.80 2,40,000

Junction box 1.2 lakhs 2.60 3,12,000

Junction dp box 0.9lakhs 2.60 2,34,000

Round plate(2

hole)5.4lakhs 1.50 8,10,000

Round plate(4

hole)5.4lakhs 1.50 8,10,000

RS 1* 3lakhs 0.60 1,80,000

RS * 3lakhs 0.60 1,80,000

RS 1* 1 3lakhs 0.60 1,80,000Total 33,76,000

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6.6 Raw material

Sr. no Items Quantity Rates(Rs)/ton Total value(Rs)

1.

High

Density

Plastic

10 ton 7,50,000 7,50,000

Total-

7,50,000

6.7 Utilities

Sr. no ParticularsAnnual

expenditures(Rs)

Remarks

1. Power/electricity 36,000

Total 36,000

6.8 Man Power (Salaries/wages)

Sr. no Particulars No.Wages/salaries

per month (Rs)

Annual

expenses (Rs)

1.

2.

3.

4.

5.

Skilled

Semi skilled

unskilled

Office staff

Any other

2*90*30

4*70*30

13*60*30

4*100*30

5,400

8,400

23,400

12,000

5,90,400

Total- 49,200

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6.9 Repairs and maintenance

Sr. no Particulars Amount (Rs)

1.Repairment of machine

parts

50,000

6.10 Selling and distribution expenses

Sr. no Particulars Amount Remarks

1.

2.

3.

4.

5.

Publicity expenses

Traveling

Freight

Commission

Misc.

30,000

20,000

Print and electronic

Media

Total- 50,000

6.11 Administrative expenses

Sr. no Particulars Amount (Rs)

1.

2.

3.

4.

Stationary & printing

Post/telephone/telegrams

Entertainment expenses

Misc.

10,000

15,000

12,000

5,000

Total- 32,000

6.12 Interest

YearOutstanding loan amount

(Rs)Interest Value in Rs

2007 17,00,000 10%PA 1,70,000

6.13 Depreciation

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6.14 Misc. expenses

Sr. no Description Cost (Rs)

1. Damage of plastics 21,000

Sr. no Type of assetCost of

assetExpected life Depreciation

Depreciation

per year(Rs)

1. Plant 2,00,000 10yrs 20% 40,000

2. Machine 1,00,000 5 yrs 5% 5,000

Total 45,000

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7. WORKING CAPITAL

Sr. No. Item Rs.

1. Raw-Material 7,50,000.00

2. Salary/Labor 5,90,400.00

3. Interest on loan 1,70,000.00

Total 15,10,400.00

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8. TOTAL COST OF THE PROJECT

Sr. No. Particulars Total Value(Rs.)

1.

2.

3.

Fixed Capital

(Total if item No.2.1,2.2,2.3)

Working Capital margin

(Total of item No. 2.5)

Preliminary & Pre-operative

Expenses

(Total of item No. 2.4)

5,00,000

15,10,400

4,00,000

Total 24,10,400

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9. MEANS OF FINANCE

Sr. no Particulars Amount(Rs.) Remarks

1. Term loan 10,00,000 Financing institution

2. Working capital loan 7,00,000

3. Own investment 7,10,400

Total- 24,10,400

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10. PROFITABILITY PROJECTIONS

Sr. no Particulars Amount(Rs)

A. Sale realization 33,76,000

B. Cost of manufacturing

a. Raw materials

b. utilities

c. salaries/wages

d. repairs or Maintenance

e. selling and distribution expenses

f. administrative expenses

g. interest

h. depreciation

i. misc. expenses

j. Rent

7,50,000

36,.000

5,90,400

50,000

50,000

32,000

1,70,000

45,000

21,000

NA

Total 16,94,400

C. Gross profit/loss (A-B) 16,81,600

D. Income tax (33.6%) 5,65,017

E. Net profit/loss 11,79,382

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11. BREAK EVEN POINT

Break even point = (Fixed cost X 100) / (Fixed Cost + Profit)

= (500000 x 100) / (500000 + 1681600)

= 22.92

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12. CONCLUSION

This proposed project plastic fitting industry must be a successful launch if the required

items are available and the market strategy as same as we have decided. The demand of

this type of product is high in the market means the plastic goods are essential for the

customers. Before placing the product in the market the product should be well advertised

among the people. The easy finance is available from the commercial banks and the

requirement of the capital is very less and some amount is shared by the entrepreneurs.

The estimated Sale Realizationis Rs.33, 76,000 and Cost of Manufacturing/Servicing is

Rs.16, 94,400. Hence we should have the gross profit of Rs.16, 81,600. The market of

plastic industry is one of the most demanding sectors. The market is flooding with new

plastic products retailers.

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REFERENCES

[1] www.eeaonline.org/indonesia

[2] www.NIIR.org

[3] www.ecenter.mit.edu/elab

[4] www.nstedb.com

[5] www.techno-preneur.net

plastic fittings industry

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