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
Capacity36000 Baskets per annum
Selling PriceRs. 26 per basket
5. Project Cost/Capital Investment
1Preliminary & Preoperative Expns
2Fixed Capital
3Working Capital for 1 month(s)
 Total Project Cost
6. Means Of Finance
S.NoDescription%ageAmount Rs.
1Promoter Contribution15%25425
2Subsidy /Soft Loan20%33900
3Term Loan65%110175
 Total 169500
7. Financial Aspects
A. Fixed Capital
(i) Land500 sq. mt60003000000
ii) Building area300 sq. mt.60001800000
ii. Machinery and Equipment
S.NoDescriptionQty.RateAmount Rs.
1Spot welding machine, 7.5 kgs capacity14000040000
2Wire starting and cutting machine12500025000
3Cutting machine for wire straightening12400024000
4Dye set of six attachments and of diff.11500015000
5Electric Oven16000060000
6Other Equipment14000040000
 Total  204000
B. Working Capital i. Salaries & Wages (per month)
S.NoDescriptionNos.Sal/mon.Amount Rs.
2Skilled Labour3500015000
 Total  31000
ii. Raw Material (per month)
S.NoDescriptionUnitQty.RateAmount Rs.
1Wire of 8 to 10 yardsKgs18004072000
2Plastic Coating PowderKgs190009000
3Electrodes TotalKgs1 0
iii. Utilities (per month)
S.NoDescriptionUnitAmount Rs.
 Total 3250
iv. Other Expenses (per month)
S.NoDescriptionAmount Rs.
1Postage & Stationery Expenses2000
2Transportation Expenses3000
3Advertisement Expenses2000
4Consumable Stores3000
5Miscellaneous Expenses2000
v. Total Working Capital (per month)
S.NoDescriptionAmount Rs.
2Salaries and Wages31000
3Raw Material81000
5Other Expenses12000
Total Capital Investment
Fixed capital5004000
Working Capital for 2 month254500
Total (TCI)5258500
Cost of Production (Per Annum)
S.NoDescriptionAmount Rs.
1Total Working Capital1527000
2Depreciation @ 15%30600
3Depreciation on Building240000
4Interest @ 14%736190
Turnover (Per Year)
S.NoDescriptionUnitQty.Rate Rs.Amount Rs.
1Wire baskets mfgBaskets36000752700000
 Total   2700000
Fixed Cost (Per Year)
S.NoDescriptionAmount Rs.
4Salaries & Wages @ 40%148800
5Other Expenses incl. Utilities @40%73200
11. Profit Analysis & Ratios
1Net Profit1471210
2Percentage of Profit on Sales54.49
3Percentage of Return on Investment27.98
4Break Even Point45.51

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