365 Days 365 Business Ideas: Start a Wire Baskets Manufacturing Unit

Friday, 11 November 2011

Start a Wire Baskets Manufacturing Unit

(207) Start a Wire Baskets Manufacturing Unit

1. Introduction

Baskets and carriers made up of wire find wide usage in homes, hotels, shops for keeping utensils, crockery, fruits and other such stuff. It is alos used in two wheelers as carrier and its requirement is ever widening. Stands, baskets, other domestic items and carrier for two wheelers can also be manufactured.

2. Market

There is good demand for wire baskets in the market. These type of baskets used as shopping bags as well as to carrying out things from market.

3. Manufacturing Process

First of all a lay out is prepared of the items size and design and then 8 to 10 yard of wire is cut and given desired shape with the help of dye. After this, the wires are joint with the help of spot welding machine. Later these shapes are covered by plastic coating powder and heated in electric furnace for specific time period so that the powder melts over the item whihc makes it safe and attractive. this coating powder is available in different oclours like red, green, blue, yellow voilet.

4. Production Capacity Per Annum

Capacity	36000 Baskets per annum
Selling Price	Rs. 26 per basket

5. Project Cost/Capital Investment

S.No	Description
1	Preliminary & Preoperative Expns
2	Fixed Capital
3	Working Capital for 1 month(s)
	Total Project Cost

6. Means Of Finance

S.No	Description	%age	Amount Rs.
1	Promoter Contribution	15%	25425
2	Subsidy /Soft Loan	20%	33900
3	Term Loan	65%	110175
	Total		169500

7. Financial Aspects

A. Fixed Capital

(i) Land	500 sq. mt	6000	3000000
ii) Building area	300 sq. mt.	6000	1800000
Total			4800000

ii. Machinery and Equipment

S.No	Description	Qty.	Rate	Amount Rs.
1	Spot welding machine, 7.5 kgs capacity	1	40000	40000
2	Wire starting and cutting machine	1	25000	25000
3	Cutting machine for wire straightening	1	24000	24000
4	Dye set of six attachments and of diff.	1	15000	15000
5	Electric Oven	1	60000	60000
6	Other Equipment	1	40000	40000
	Total			204000

B. Working Capital i. Salaries & Wages (per month)

S.No	Description	Nos.	Sal/mon.	Amount Rs.
1	Supervisor/Entrepreneur	1	10000	10000
2	Skilled Labour	3	5000	15000
3	Worker	2	3000	6000
	Total			31000

ii. Raw Material (per month)

S.No	Description	Unit	Qty.	Rate	Amount Rs.
1	Wire of 8 to 10 yards	Kgs	1800	40	72000
2	Plastic Coating Powder	Kgs	1	9000	9000
3	Electrodes Total	Kgs	1		0
					81000

iii. Utilities (per month)

S.No	Description	Unit	Amount Rs.
1	Power	LS	3000
2	Water	LS	250
	Total		3250

iv. Other Expenses (per month)

S.No	Description	Amount Rs.
1	Postage & Stationery Expenses	2000
2	Transportation Expenses	3000
3	Advertisement Expenses	2000
4	Consumable Stores	3000
5	Miscellaneous Expenses	2000
	Total	12000

v. Total Working Capital (per month)

S.No	Description	Amount Rs.
2	Salaries and Wages	31000
3	Raw Material	81000
4	Utilities	3250
5	Other Expenses	12000
	Total	127250

Total Capital Investment

Fixed capital	5004000
Working Capital for 2 month	254500
Total (TCI)	5258500

Cost of Production (Per Annum)

S.No	Description	Amount Rs.
1	Total Working Capital	1527000
2	Depreciation @ 15%	30600
3	Depreciation on Building	240000
4	Interest @ 14%	736190
	Total	2533790

Turnover (Per Year)

S.No	Description	Unit	Qty.	Rate Rs.	Amount Rs.
1	Wire baskets mfg	Baskets	36000	75	2700000
	Total				2700000

Fixed Cost (Per Year)

S.No	Description	Amount Rs.
1	Depreciation	270600
2	Interest	736190
4	Salaries & Wages @ 40%	148800
5	Other Expenses incl. Utilities @40%	73200
	Total	1228790