Wednesday, 30 November 2011

Start a Bio-gas and Liquid Fertilizer Machine Business

(241). Start a Bio-gas and Liquid Fertilizer Machine Business
This is a system designed to treat domestic biodegradable waste in order to get the most values out of it: bio-gas and liquid fertilizer.
The product focuses in the activity of “growing your own” food inside greenhouses by using the heat from burning the bio-gas to heat up the greenhouse during the winter days, and by using the liquid fertilizer to provide nutrients to the plants.
By doing so, the user is creating a small closed loop of nutrients in his own garden: turning the nutrients in the food waste into fertilizer, that will be absorbed by the growing fruits and vegs, that will then provide the food waste to feed back into the system.
System:
The product is based in Anaerobic Digestion (AD), which is the bio-degradation of waste without the presence of oxygen, and is the most efficient way of dealing with this waste.
In FEED ME, the user provides a mix of his food waste and water that goes through a mincer and straight into the AD tank as a liquidized mix, where it degrades. AD is also a much faster decomposition than normal composting, making the system more dynamic and able to work in a continuous process. So when the user inputs a certain volume of waste, the same volume of digested fertilizer will be displaced, becoming available to use, resulting in an instant feedback of transformation of waste into fertilizer. This activity changes the negative perception of getting rid of garbage, into a nice habit of feeding the greenhouse with the food scraps.
User research showed that the potential users have their greenhouses in allotment areas, with no electric source. This meant that the product had to be completely self-sufficient. The bio-gas created is stored in a “telescopic gasometer” system that expands vertically as the gas is generated, keeping it at constant pressure by the weight of the tank as it gets consumed. The surrounding compost uses the heat produced by the composting garden waste to create a micro-climate in the AD tank and keep the bacteria active during winter seasons.

Process:
Prototypes & Test rigs:

Start a Leather Travelling Bag Making Unit



        
(240) Start a  Leather Travelling Bag Making Unit
           

Product Code:293101000
Quality and Standards:As per buyers specification
Production Capacity:Quantity: 30000 pieces (per annum)
Value: Rs. 32400000
Uploaded on:March 2007

Introduction 

Travelling bag is one of the convenient goods used for carrying the belongings such as clothes, daily-use articles and other essentials during travelling from one place to other. Some other types of products are also used for carrying important documents and office use equipments by the executives and high profile personnel. Although this product is manufactured from various types of materials such as textile, jute, coated fabrics, yet leather travelling bag is having wider acceptance due to its superior strength, aesthetic look and up-man-ship among middle and high-income group people. A wide range of travelling bags are in use for various purposes. The cost of the leather bags depends upon the type of leather, space and/or style of it. This project aims at manufacturing two types of bags i.e.:
(i)
Bags of single large pocket with one or two zips usually made from heavy cow or buffalo leather and
(ii)
Bags of multi pockets with interlining and re-enforcement, flap type, fitted with magnetic press buttons, commonly made from cow nappa leather.
Market Potential
The demand of the leather travelling bag is increasing day-by-day in tune with the growth of industrialization, economic standards of people, tourism and fashion consciousness. The important customers of such products are medium and high-income group people belonging to service, business and executive classes. The products with a price range of Rs. 400 to Rs. 2,500 are commonly seen in the market. The proposed product with the price of about Rs. 600 to Rs. 800 is felt quite acceptable with reasonable quality. Further, export worthiness of this product is quite substantial with qualitative and latest designed ones. A small manufacturer can have tie-up with any exporter merchant in the country for executing the order as per the specified design. There is an ample scope of leather travelling bag units with easy and considerably cheaper availability of indigenous raw material and skilled manpower.
Basis and Presumptions
This project profile has been prepared on the basis of following assumptions:
1.Working Hours:Double shift(8 hour per shift) of 16 hours a day for 300 working days in a year
2.Capacity Utilisation:60% during first year
70% during second year
80% during 3rd year and onwards
3.Entrepreneur:Anybody having knowledge/experience of leather goods and/or venture to start leather based units.
4.Location:Anywhere in India, preferably nearby any tannery pocket or export facility zone.
5.Land and Building:Own
6.Raw Materials:Chrome tanned heavy cow or buffalo bag leather and softy cow nappa leather.
7.Salary and Wages:All employees are paid on monthly basis at prevailing rates of leather industry
8.Transportation and Taxes on purchase:Not Included in purchase price.
9.Power Charges:Rs. 4 per KWH from power supply source
10.Depreciation:5% on building and civil construction
10% on plant and machinery
25% on tools and equipments
20% on furniture and fixture
10% on other fixed assets
11.Margin Money:30% of total capital investment
12.Interest Charges:15% has been calculated on total capital investment considering the opportunity cost of margin/equity money.
13.Fixed Cost for BEP Analysis:100% rent, insurance, interest and depreciation
40% of total salary and wages
40% of total utilities and other Contingent expenses excluding rent and insurance.
Implementation Schedule
Sl. No.ActivityPeriod (in months)
1.Site selection, negotiation with landlord, market survey preparation of project report and other formalities2
2.Seeking quotation of machines, purchase and installation2
3.Trial production, arranging working capital, Procurement of raw material and market tie up2
 Total period required for commencing commercial production6
Technical Aspects
Process of Manufacture
The leather travelling bags proposed to be manufactured in this project are mainly of two types. One is of single large pocket with a space of 3 to 6 ft. fitted with one or two fasteners and a long strap handle and other one is of multi-pockets (3 to 5) fitted with different types of fasteners like zips, velcro or press buttons. While heavy cow or buffalo bag leather with the thickness of 2.0 to 2.5mm without lining is preferred for making the former, the softy type of leather like cow nappa leather with the inter-lining and reinforcement is usually used for the later.
First of all the components are cut from suitable materials. The basic raw material is the finished leather, which is not uniform, irregular in shape and size, variation with grain structure and presence of defects on the surface. On the other hand, the components are generally regular or rectangular shape and the adjacent components should have similar shade and structure. Therefore, necessary care should be taken in cutting the components. The cut components are then skived to the edges for ease of folding and/or stitching. The edges are then beaded and the zips and other fasteners attached as per the specification. The outer surface (leather), the inner surface (lining) and the re-enforcement materials if required so, are attached first with the adhesive and then by stitching. The linings and thread-ends are trimmed and sealed. The surface is cleaned and polished and made ready for packing.
Quality Control and Standards
The quality of this product has to be maintained as per buyer's specification. However, the main criteria for quality control are selection of suitable materials, (especially the leather with required thickness, shade, strength and softness) cutting components from suitable portions of leather, uniform folding, fastener attachment, regular stitching with suitable thread with
specified stitch length and finishing.
Production Capacity (per annum)
i)Leather travelling bag single pocket with one long and two small handles (20"x5"x18")18000 Pcs. of Rs 18000000.
ii)Leather travelling bag-multi pocket flap type with one longand two small handles (18"x5"x15")12000 Pcs. of Rs. 14400000

Motive Power
10 HP.
Pollution Control
The proposed unit does not produce any effluent. However, the scraps of leather and other materials are to be collected and disposed-off at appropriate place or are burnt at an isolated place.
Energy Conservation
All machines are power driven and are run individually, whenever required.
Financial Aspects
A. Fixed Capital
(i) Land and BuildingAmount
(In Rs.)
(i) Land 3000 sq. ft. @ Rs. 500 per sq. ft including registration
1500000
(ii) Total built-up area 2000 sq. ft. @ Rs 1000 per sq ft
2000000
Water System (including Bore Well + over head tank etc)
100000
Total civil cost= cost of land + building
3600000
(ii) Machinery and Equipments
Sl. No.DescriptionImp./Ind.Qty.Rate (Rs.)Value (Rs.)
1.Strap cutting machine Straight (12 knives)Ind.170,000
70000
2.Pneumatic stamping machine-stamping wheel (0-9 nos.) (A-Z)Ind.195,000
95000
3.Upper Skiving machineInd.155,000
55000
4.Flat bed single needle sewing machineInd.325,000
75000
5.Heavy duty flat bed single needle sewing machineInd.140,000
40000
6.Cylinder bed sewing SingleInd.290,000
180000
7.Combined finishing machineInd.185,000
85000
8.Rivetting machineInd.110,000
10000
9.Taxes,Electrification and erection of machine @ 40% on machine cost   
244000
 
Total
854000
(iii) Tools and Equipments and Other Fixed Assets
Sl. No.DescriptionImp. Ind.Qty.Rate (Rs.)Value (Rs.)
1.Leather goods makers tool kitInd.3 sets5000
15000
2.Machine maintenance and electricians tool kitInd.1 setL.S.
5000
3.Testing equipments-thickness gauge, measuring scales etc.Ind.-L.S.
5000
4.Workshop working tables, racks etc.Ind.-L.S.
80000
5.Office furniture and equipmentsInd.-L.S.
100000
6.Misc. equipmentsInd.-L.S.
10000
 
Total
215000
 
Total [ii +iii]
1069000

(iv) Pre-operative Expenses(Rs.)
1.Preparation of project report and consultancy40000
2.Administrative expenses10000
3.Travelling, Market development and tie-up20,000
4.Other formalities and expenses prior to production10,000
 
Total
80000
 
Total Fixed Capital [i+ii+iii+iv]
4749000
B. Working Capital (per month)
(i) Staff and Labour (per month)
Sl. No.DesignationNo.Salary (Rs.)Total (Rs.)
1.Manager120000
20000
2.Supervisor cum Designer1010000
100000
3.Skilled Worker107000
70000
4.Semi-skilled workers66000
36000
5.Unskilled worker44000
16000
6.Electrician and mechanic15000
5000
7.Accountant cum Cashier16000
6000
8.Store keeper cum assistant15000
5000
9.Attendant13000
3000
 
Total
261000
 Add perquisites @ 22% on Salary
57420
 
Total
318420
(ii) Raw Material Including Packaging Materials Per Piece of Bag (per month)
Sl. No.DescriptionQuantityRate (Rs.)
Total (Rs.)
    Bag SPBag MP
1.Heavy cow or buffalo Chrome tanned Bag Leather (2.0 mm)8.5 Sq. ft.70
595
-
2.Cow nappa/softee leather (1.4 mm)9.0 Sq. ft.80-
720
3.Linings and reinforcementsLS 2070
4.Magnetic press buttonsLS -50
5.Zips, Threads, adhesive, Finishing and other misc. materialsLS 2538
6.Packaging materialsLS 914
 
Total
649
892
 Total materials requirement (per month) (456 x 750 + 622 x 500)
1865500
(iii) Utilities (per month)
Sl. No.DescriptionAmount (Rs.)
1.Electricity bill LS
10000
 
Total
10000
(iv) Other Contingent Expenses (per month)
Sl. No.DescriptionAmount (Rs.)
2.Repair and maintenance10000
3.Other consumable10000
4.Insurance2000
5.Telephone, fax and other postal expenses6000
6.Stationery and printing5000
7.Other misc. expenditure10000
 
Total
43000
(v) Total Recurring Expenses (per month)
Sl. No.DescriptionAmount (Rs.)
1.Staff and Labour
318420
2.Raw Materials
1865500
3.Utilities
10000
4.Other contingent expenditure
43000
 
Total
2236920

(vi) Total Working Capital Requirement(Rs.)
i.Raw material stock-one month
1865500
ii.Stock in process-2 days
124367
iii.Finished goods stock-Half month
932750
iv.One month expenses: 
 a. Salary and wages
318420
 b. Utilities
10000
 c. Other Contingent expenses
43000
 
Total
3294037

(vii) Total Working Capital Requirement(Rs.)
v.Receivables (One month credit sale)
2700000
 
Total
5994037
C. Total Capital Investment
Sl. No.DescriptionAmount (Rs.)
1.Fixed Capital
4749000
2.Working capital
5994037
 
Total
10743037
Financial Analysis
(1) Cost of Production (per year)
Sl. No.DescriptionAmount (Rs.)
i)Total recurring cost
26843040
ii)Depriciation on Building 5 %
180000
iii)Depreciation on machinery and equipments @ 10%
85400
iv)Depreciation on tools and equipments @ 25%
28750
v)Depreciation on Furniture and Fixture @ 20%
22000
vi)Interest on Total Capital Investment @ 12%
1289164
 
Total
28448354
(2) Turnover (per year)
Sl. No.ItemsQuantity/piecesRate (Rs.)Value (Rs.)
1.Leather travelling bag-Single pocket180001000
18000000
2.Leather travelling bag-Multi pockets120001200
14400000
 
Total
32400000

(3) Net Profit (Before Taxation) (per year)
Turnover - Cost of Production
32400000 - 28448354
= 3951646

(4) Net Profit Ratio  
  Net Profit per year x 100
 =———————————
  Turnover per year
   
  3951646 x 100
 =————————
  
32400000
   
 =
12.2
   
(5) Rate of Return on Total Investment
  Net Profit Per year x 100
 =———————————
  Total Investment
   
  3951646 x 100
 =————————
  
10743037
   
 =
36.78%
(6) Break-even Point Fixed cost
Sl. No.DescriptionAmount (Rs.)
a)Depreciation on Building @ 5 %
180000
b)Total depreciation on plant machinery tools fixtures office equipments
136150
c)Interest on capital investment
1289164
d)Insurance
24000
e)40% of Salary and Wages
1528416
f)40% of other contingent expenditure and utilities
51000
 
Total
3208730

B.E.P.  
  Fixed cost x 100
 =—————————
  Fixed cost + Net Profit
   
  3208730 x 100
 =——————————
  3208730 +3951646
   
 =44.81%
Addresses of Machinery and Equipment Suppliers
1. NSIC Technical Service Centre
Sector B-24, Guindy Indl. Estate,
Ekkaduthangal,
Chennai-32.
2. M/s. Atlanta Trading (P) Ltd.
Atur House,
Worli Naka,
Mumbai-18.
3. M/s. Twin Star Engineering
No. 98, Pammal Main Road,
Pammal,
Chennai-75.
4. M/s. Raj Machine Home
Opp. New Jyoti Building,
35/44, Karabala Road,
Agra-5.
Raw Material Suppliers
1. M/s. Alpha Global
445/1,6th Cross, 7th Block,
Jayanagar KPM Road,
Bangalore-560 082.
2. M/s. Amjad Finished Leather Co.
54, Maddox Street, Choolai,
Chennai-112.
3. M/s. Arkay Leathers
No. 3, Third Floor, Crown Court,
34, Chathedral Road,
Chennai-86.
4. M/s. Mow Chung Tannery Pvt. Ltd.
47, South Tangra Road,
Kolkata-46.
5. M/s. Pidilite Industries Ltd.
J.B. Marg, Nariman Point,
Mumbai
(for adhesive)
6. M/s. APL Poly Fab Pvt. Ltd.
48 C, Matheswar Tala Road,
Kolkata-46
(for lining)
7. M/s. Coats India Ltd.
144, M.G. Marg,
Bangalore-1
(for stitching thread)
8. M/s. Asia International
1523, Qasimjan Street,
Lal Kuan, New Delhi
(for fasteners)
9. M/s. Bharani Agencies
No. 126, Thambu Chetty Street,
III Floor, Chennai-1
(for fasteners)
10. M/s. Hyde Park India Pvt. Ltd.
C-21, Sector-7, Noida,
Ghaziabad Distt., U.P.
( for fasteners)