Monday, 19 December 2011

Start a Ball Pen Ink making Business



    

(250). Start a Ball Pen Ink making Business

Introduction
Ball pen is one of the most essential items for students, educational institutions and for office work, etc. Ink is a viscous and coloured fluid composed of reflux blue, varnishes, oil and drier. This is a mass consumption item.

Market Potential
Ball pen is the most common tool for all schools, colleges and university going students for writing purpose. As greater emphasis is being laid on removal of illiteracy, the prospects of Ball pen ink industry are bright.
Basis and Presumptions
i) Efficiency and working hours considered for full capacity utilization.8 working hours/day/shift 300 working days taken into account annually.
ii) Time period for achieving full/ envisaged capacity utilization.Within 2 months after trial production.
iii) Labours, wages and conditions.As per local salaries.
iv) Interest rate for fixed and working capital.Average @ 14%
v) Margin moneyAverage 25%
vi) Rented shedWith partition walls 20'×21'
vii) Costing of machinery and equipment.As per local rates.
Implementation Schedule
1. Selection of site2 months
2. Collection of quotation for M/c and Equipment2 months
3. Procurement of machinery.1 month
4. Placement of order for raw material1/2 month
5. Commercial production½ month
Total
6 months


 
Process of Manufacture 

Metal complex dyes and complexes in castor oil/stand oil, varnishes and driers are mixed together in suitable proportions in a mixing machine. The material so produced is called ball pen ink, which is viscous in nature. Metal complex dyes are chosen to get a shade to suit customer’s requirements. A list of metal complex dyes used for making ball pen ink is given at the end.
Quality Control and Standards
  • As per market demand.
Production Capacity (per annum)
Quantity12 kilo litres
ValueRs. 30,00,000

Motive Power
Electric power5 H.P. approx.
Man power8 Nos.
Pollution Control
No liquid or gaseous effluents are released during the process. Pollution is not involved.
Energy Conservation
  • Not much relevant.
Financial Aspects

A. Fixed Capital


(i) Shed of size (rented) 20’×20' with partition walls Rs. 200 per month
(ii) Machinery and Equipments
Description of M/csQty.
Price (Rs.)
Mixing machine with motor Cap. 10 litres per 8 hrs.1
60,000
Weighing m/c platform type Cap. 50 kg.1
15,000
Shovel made of stainless steel material4
4,000
Scraper knife4
1600
Storage tank (for varnish and oil) HDPP material2
8,000
Triple Roll Mill1
50,000
Total
1,38,600

(iii) Testing EquipmentsQty.
(Rs.)
1. Ford’s cup
2
2,500
2. Rectangular Glass Sheet
2
800
3. Exhaust Fan (for pollution control)
1
800
4. Cost of power connection, Electrification and installation Charges @ 10% of the cost of M/c. and equipments 
14,270
(iv) Total Cost of M/c. and Equipment
Rs. 156970
Cost of office equipments/ working Tables and chairs etc.
5,000
(v) Pre-operative Expenses
Rs. 5,000
(vi) Total Fixed Capital
Rs. 166,970
B. Working Capital (per month)
(i) Personnel
DesignationNo.Salary (Rs.)
Total (Rs.)
1. Manager/Chemist
1
3000
3,000
2. Accountant/Clerk
1
2000
2,000
Technical Staff
3. Skilled workers
2
1500
3,000
4. Unskilled workers
2
1200
2,400
5. Casual labour
2
1000
2,000
Total
12,400
(+) Perquisites @ 15% of salaries
1,860
Total
14,260
(ii) Raw material including Packaging (per month)
ItemQty.Rate (Rs.)
Value (Rs.)
a) Metal Complex
200Kg.
400/ kg. dyes
80,000
b) Stand oil/castor oil/solvents
550 kg.
130/Kg
71,500
c) Varnishes (alkyd/ Phenolic/Maleic)
250 Kg.
140/Kg
35,000
d) Drier
10 Kg.
230/Kg
2,300
Total
1,88,800

(iii) Utilities (per month) 
(Rs.)
i) Power5 H.P. @ Rs. 3 per unit
2250
ii) Water chargesL.S.
500
Total
2750

(iv) Other Contingent Expenses (per month)
(Rs.)
i) Rent of the shed
2000
ii) Postage and stationery
500
iii) Consumable stores
500
iv) Repairs and maintenance
500
v) Transport charges
1000
vi) Advertisement and publicity
1500
vii) Insurance
1500
viii) Sales expenses and miscellaneous expenditure
1000
Total
8500

(v) Total Recurring Expenditure (per month)
(Rs.)
i) Raw material
1,88,800
ii) Utilities
2,750
iii) Salary/Wages
14,260
iv) Other expenditure
8,500
Total
2,14,310
C. Total Capital Investment
Fixed capital
Rs. 1,66,970
Working capital for 3 months
Rs. 6,42,930
Total
Rs. 8,09,900
Financial Analysis
(1) Cost of production (per year)
(Rs.)
a) Total expenditure
25,71,720
b) Depreciation on machinery @ 10%
14,270
c) Depreciation on furniture @ 20%
1,000
d) Interest on total capital investment
1,13,400
Total
27,00,390

(2)Turnover (per year)
(Rs.)
Ball Pen Ink 12 KL @ Rs. 250 per litre
30,00,000
(3) Net Profit Before Income Tax
Rs. 2,99,610
(4) Net Profit Ratio
10%
(5) Rate of Return
37%
(6) Break-even Point 

(i) Calculation of Fixed Cost
(Rs.)
a) Depreciation on m/cs., equipments and office equipments
14270
b) Rent of shed
24000
c) Interest on total investment
113400
d) Insurance
18000
e) 40% of salaries and wages
68448
f) 40% of other contingent expenses (excluding rent and insurance)
24000
Total
262118

(ii) Profit
Rs. 3,12,632
   
B.E.P
=
FC ×100
-------------
FC+Profit
 
 
 
=
249096 × 100
-------------------
262118+ 299610
 
 
 
=
262118
-----------× 100
561728
 
 
 
=
46.6%
Additional Information

1. Machinery and equipments can be fabricated locally.
2. Taxes like sales tax, income tax, etc. not included in the project profile.

Basic dyes for Ball Pen Ink

1. Victoria Blue Base F 4 R
2. Methyl Violet base
3. Basonyl Yellow X-RL 300%
4. Basonyl Brilliant Red X-4 G 300%
5. Basonyl Green 830 Liquid
6. Basonyl Blue 636
7. Basonyl Violet 600
8. Basonyl Red 482
9. Basonyl Red 540
10. Rhodamine GDN Extra

Addresses of Machinery Suppliers

1. M/s. Anup Engineering Ltd.
Post Box No. 1158,
Ahmedabad-380002

2. M/s. Billy Engg. Enterprises
761, Thiruvettivur,
Chennai-600081

3. M/s. APV Eng. Co. Ltd.
7 Jessore Road, Dum Dum,
Kolkata

4. M/s. Sweta Bass
Industrial Estate,
Bareily, Uttranchal.
5. M/s. Ganson Ltd.
6, West View, Dadar,
Mumbai-400014

6. M/s. Richard Engg.(Bombay) Pvt. Ltd.
25, MIDC Chemical Zone,
Ambernath-420501

Addresses of Raw Material Suppliers

1. M/s. Gujarat Quinon Pvt. Ltd.
Block 150/B, Tundev, Anjesar
Road, Tundev, Taal Sabli, Distt.
Baroda-390005

2. M/s. India Product
Manilal Mukhi Estate,
Naroda, Narole Highway,
Behind Narela House,
Ahmedabad-380026

3. M/s. Dausala Organics Ltd.
22 B, Himalaya House,
Kasturba Gandhi Marg,
New Delhi-110001.

4. M/s. Indian Dye Stuff Industries Ltd.
Mafatlal Centre, Nariman Point,
Mumbai-400021.

5. M/s. Kanoria Chemical and Industry Ltd.
Park Plaza, 71, Park Street,
Kolkata-700016

6. M/s. Unity Chemical
Block No. 85, D Wing,
Paramal Nagar,
Gorigaon (W)
Mumbai-400062.

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