Start a Block Board And Flush Door Shutters (Wooden Solid Core)

           
(208) Start a Block Board And Flush Door Shutters (Wooden Solid Core)   

Block Board: Block Boards are a kind of plywood in which the veneers are glued on both sides on wooden battens frame. Wooden strips are placed across a surface of one or more boards to prevent, warping and strengthening etc. Block Boards are used for making furniture, cabinets, partitions, interior/ exterior decorative wood working etc.

Flush Door: Flush Doors are also a kind of block board which is used to make door panels and differ in sizes according to the size of door.

Market Potential

As a raw material, wood has several unique characteristics and properties. Properly seasoned wood is light in weight compared to most materials of constructions and fabrication. Wood is a poor transmitter of sound, heat and electricity. Wood is easier to work, to paint and to preserve in the presence of sea water than most competitive materials. There are many other remarkable properties and characteristics of wood which provide for a variety of its usage and products. Block boards and flush doors are among these products.

Block boards and flush doors are seasoned boards and have all the properties of wood like, ease to work, to paint etc. These have advantages over raw wooden planks for the reason that these boards are more strong and free from war page. Now a days in almost all the sectors of society, the use of plywood, board is becoming common for it is cheaper than wood and stronger as well. These boards doors are available in standard sizes. They can also be used in partitions, making furnitures, interior and exterior decorations etc. The surfaces of the boards are always smooth so laminating board with mica or otherwise is easy. Looking at these advantageous properties of boards, these are now becoming popular and used in almost all the houses, offices, bungalows, commercial complexes etc. In view of the urban/rural development and growth of construction activities and increasing replacement of old traditional wooden fittings with the boards, it can be easily presumed that these boards have a tremendous market potential.

Basis and Presumptions

This project scheme has been prepared on the basis of prevailing rates, which may vary from time to time and place to place. The entrepreneurs putting up this unit must check up/verify the following points at the time of conception:

1. Unit should run in single shift of 8 hours, 300 working days in a year.

2. It is envisaged that the unit can utilise 75% of its total installed capacity.

3. Labour wages, cost of plant and machinery, interest on capital investment etc. have been taken as prevailing at the time of preparation of this report.

4. Margin money requirement, terms of loan etc. may vary from institution to institution.

5. Interest on capital investment has been taken @ 12% per annum.

Implementation Schedule

It is estimated to take about 6 months, from conception to implementation and commercial production, which includes preparation of project report, liaison with financial institutions, purchase of plant and machinery, erection and
commissioning, recruitment of staff and labour, clearance from all the concerned departments etc.

Technical Aspects
Process of Manufacture

Plywood, block boards and flush doors are made from a similar process, the difference between block board/ flush doors and plywood is only that the solid core of block boards and flush doors is made up of wooden battens frame, whereas the plywood is made from veneer gluing on one another. Plywood consists of three or more sheets of veneer glued together, with the grains of alternate sheet usually laid cross wise. The resulting material has distinct advantages for many uses as it is strong and free from war page etc. There are many gluing materials available in the market but Urea Formaldehyde is normally used and Phenyl Formaldehyde is used in plywood or block boards for exterior uses as this type of gluing material provides water or weather resistance properly to the boards.

1. Water is mixed in proportionate quantity in powder resin with small quantities of GHCP, TSP, LA and Maida to make liquid glue in glue mixer.

2. Liquid glue is spread on core veneer with the help of rollers on glue spreader.

3. Different layers of core and face veneers are set manually on wooden battens frame and stacked in the press and compressed with the help of steam in Hydraulic hot press.

4. After the boards are properly pressed and dried, these are taken out and side cutting is done on DD saw. Saw wastage of side cutting is used as fuel in boiler.

5. Top layer finishing is done on sanding machine by sanding belt.

Flow Process 

Glue mixer - Glue spreader - Face and core veneer stacking - Hydraulic hot press - DD saw - sanding - finished boards.

In case of manufacture of flush doors, the production process remains same except the solid core is made from, a frame of battens in required sizes and face veneers are glued with phenyl formaldehyde which gives the door water resistance property.

Quality Control and Standards

Block boards are required to be manufactured as per IS 1659:1990 (Third revision, Amendment No. 3). Flush doors are to be manufactured conforming to IS 2202:1991 (Part I : Fifth revision).

Bureau of Indian Standards has suggested some tests for block boards and flush doors in IS 4020:1998 (Parts 1 to 16) which should also be followed.

Production Capacity (per annum)

Items	Quantity	Unit	Rate	Amt. (In Rs.)
Block Board/ Plywood	126000	Sq. Mts	220	27720000
Flush Door	84000	Sq.Mts	440	36960000
Total				64680000

Motive Power

25 K.W.

Pollution Control

As such the unit does not need any special features for pollution control, however general precautions must be taken care of. Financial Aspects

Energy Conservation

No special measures are needed. However while selecting machinery etc., one should be careful.

Financial Aspects
A Fixed Capitala

(i) Land and Building	(In Rs.)
Land 700 sq. mtr. @ Rs. 6000/sq. mt.	4200000
Construction of work sheds 400 sq. mts. @ Rs. 5000 per sq. mtr.	2000000
Total	6200000

(ii) Machinery and Equipments

Sl. No.	Description	Ind./Imp.	Qty.	Amount (In Rs.)
(a) Production Unit
1.	Glue Mixer complete with motor and electricals (3 HP)	Ind.	1	40000
2.	Glue Spreading Machine with 56" rubber rollers, tank and complete accessories and 3 HP Motor	Ind.	1	180000
3.	Thermi fluid Boiler Capacity 4,00,000 calories (agriculture or municipal waste conversion)	Ind.	1	500000
4.	Hydraulic Press (640 Tonne capacity) complete with heating plates, bolt case, pressing table, electrical panels, cylindrical Ram unit, jack cylinder hydraulic power jack etc.	Ind.	1	2000000
5.	Double Diamond saw cutter machine complete with table, saw blades motors (5+5) total 10 HP and accessories	Ind.	1	150000
6.	Sanding machine complete with 5 HP motor and accessories	Ind.	2	200000
7.	Water system including borewell & over head tank			200000
Total				3270000
	Erection and commissioning @ 10% of machinery			327000
	Cost of spare blades, dies, fixture and other tools including measuring tools			200000
	Cost of working tables, office furniture and equipmen			200000
Total				3997000
(iii) Pre-operative Expenses				150000
Total				4147000

Total Fixed Capital	(In Rs.)
1. Land and Building	6200000
2. Plant and Machinery	4147000
3. Pre-Operative Expenses	150000
Total	10497000

B. Working Capital (per month)
(i) Personnel

Category	Nos.	Salary (Rs.)	Amount (In Rs.)
Manager	1	15000	15000
Supervisor	1	8000	8000
Clerk/Store Keeper	1	6000	6000
Typist cum Clerk	1	5000	5000
Skilled Worker	10	6000	60000
Helpers	15	4000	60000
Watchman	2	3000	6000
Total			160000
Add 22% Perquisites			35200
Total			195200

(ii) Raw Material

Particulars	Ind./Imp.	Qty.	Rate	Amt. (Rs.)
Veneer (for core and face)	Ind.	70,000 Sq.mts.	22	1540000
Batten frames (for solid core)	Ind.	17500	120	2100000
Glue U.F. Resin	Ind.	4	60000	240000
Glue Phenyl Resin	Ind.	4	100000	400000
Total				4280000

(iii) Utilities	(In Rs.)
Power 7000 KWH Units @ Rs. 5.5 per unit	38500
Total	38500

(iv) Other Contingent Expenses		(In Rs.)
1.	Transportation and Conveyance	70000
2.	Maintenance and Repairs	15000
3.	Telephone Charges	5000
4.	Postage and Stationery	5000
5.	Petty Purchases	10000
6.	Fuel for Boiler	20000
7.	Insurance	3000
8.	Miscellaneous Expenses	10000
	Total	138000

(v) Total Recurring Expenditure
(per month) [i+ii+iii+iv]	4651700
(vi) Working Capital (for 1.5 Months)
Rs. 4651700 × 1.5	6977550

C. Total Capital Investment

(i) Fixed Capital	10497000
(ii) Working Capital (for 1.5months)	6977550
Total	17474550

Financial Analysis

(1) Cost of Production (per annum)	(Rs.)
Total Recurring Cost	55820400
Depreciation on Machinery @ 10%	327000
Depreciation on Tools etc. @ 25%	50000
Depreciation on Office Equipments @ 20%	40000
Depreciation on Building @ 5%	310000
Interest on Capital Investment @ 12%	2096946
Total	58644346
Say	5,86,44,346

(2) Turn-over (per annum)

Sl. No.	Items	Qty.	Unit	Rate	Amount. (Rs.)
1.	Block Board/Plywood (Assorted Thickness)	126000	Sq Mtr	220	27720000
2.	Flush Doors (Assorted Thickness)	84000	Sq Mtr	440	36960000
Total					64680000

(3) Profit (Before Taxes)
		64680000 – 58644346
	=	6035654
(4) Net Profit Ratio	=	Net Profit × 100 --------------------
		Turnover
	=	6035654 × 100 -------------------
		64680000
	=	9.33
(5) Rate of Return	=	Net Profit × 100 ---------------------------
		Capital Investment
	=	6035654 × 100 -------------------
		17474550
	=	34.54

(6) Break-even Point

Fixed Cost	Amt. (In Rs.)
Total Depreciation	727000
Total Interest	2096946
Insurance	36000
40% of Salary and Wages	936960
40% of Other Contingent Expenses (Excluding Insurance)	662400
Total	4459306

B.E.P	=	Fixed Cost × 100 --------------------
		Fixed Cost + Profit
	=	4459306 × 100 --------------------
		4459306 + 6035654
	=	42.49

Addresses of Machinery and Raw Material Suppliers 

1. M/s. Energy Machines
Vithal Udyog Nagar,
Vallabh Vidya Nagar
(Gujarat).

2. M/s. Ambica Hydraulics Pvt. Ltd.
Chhotral District,
Mehsana, (Gujarat).

3. M/s. Pal Singh and Sons
Kirti Nagar, Delhi.

Raw Material Suppliers

All the raw materials are easily available in the local market

daemon tools, limewire

wallpaper, limewire