Start a Adjustable Hospital Beds Manufacturing Business

 

 (292). Start a Adjustable Hospital Beds Manufacturing Business
There are more beds in a hospital than doctors and nurses. In the future, there will be even fewer doctors and nurses to take care of growing patient numbers. In this scenario it makes sense to try to change the hospital bed into a much more active and efficient piece of equipment to help save time and resources.

Adjustable Hospital Beds that are widely used in hospitals and clinics. In order to meet the functionality of the product in a hospital, these beds are made in a wide range, e.g. Fowler Hospital Bed, Semi Fowler, Plain, Recovery, Paediatric, Fracture, ICU Hospital Bed, General hospital bed with rigid mesh mattress platform. Out of these, Fowler hospital beds and General purpose bedsteads are in large demand.

Fowler Hospital Beds are known for their extra comfort and functionality. These are available in size 1980L x 900W x 600H or 2070L x 910W x 600H mm. The frame work is made of strong rectangular steel tubes, provided with four section perforated top, two separate screws for backrest and knee rest manoeuvring, SS tubular head and foot bows with laminated panels, four swivel castors, two with brake, four IV rod locations, pre-treated and epoxy powder coated. If you can make a hospital bed that can reduce a number of time-consuming routine tasks for the nursing staff, you will stand a good chance to keep up with the competition in the future. If at the same time your hospital bed will help make treatment safer and more comfortable for the patient your chances are even better. You are bound to succeed if on top of it all you can make your hospital bed look after itself and signal when it needs cleaning, service or repair. High quality adjustable hospital beds aren’t just for hospitals anymore. Nursing homes, assisted living centers and hospice care facilities all need the best adjustable electric beds at the most affordable prices. Adjustable hospital beds come in a variety of sizes to meet a wide range of client and facility needs. Adjustable bed models fit hospital rooms, multi-patient rooms or even in a hospice patient’s living room, hospital beds offer adjustable bed height, lumbar support, head and feet raising and lowering, buttons to call nurses and, in some cases, massage capabilities.

MARKET POTENTIAL
The demand for adjustable hospital beds is increasing due to increase in the number of hospitals and their expansion and increase in number of private and government nursing homes, A large number of new hospitals and nursing homes are coming up in order to meet the patients' demand. It has led to steady increase in the requirement of hospital furniture. The growth rate is expected to be substantial. As such there is a vast scope for the steel furniture manufacture units to take up this activity for not only as a diversification but also better capacity utilization by installing a few balancing equipments.

 Basis and Presumption

a) The unit will work for 300 days per annum on single shift basis.

b) The unit can achieve its full capacity utilization during the 3rd year of operation.

c) The wages for workers are taken as per prevailing rates in this type of industry.

d) Interest rate for total capital investment is calculated @ 12% per annum.

e) The entrepreneur is expected to raise 20-25% of the capital as margin money.

f) The unit would construct its own building.

g) Costs of machinery are based on average prices of machinery manufacturers.

Implementation schedule

Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:

Scheme preparation and approval	01 month
SSI provisional registration	1-2 months
Sanction of financial supports etc	2-5 months
Installation of machinery and power connection	6-8 months
Trial run and production	01 month

Location

The plant can be located at any suitable place keeping in view the marketing convenience, availability of power and skilled manpower. 

 Salient Features of Process / Technology

The basic operations involved in the manufacture of adjustable beds are: cutting and bending of pipes; cutting of M.S. angles;  cutting of strips; welding, riveting;  grinding; assembly of elevating mechanism;  painting, baking.

Production Capacity

Quantity	600 different types of hospital beds
Installed capacity	850 beds / annum
Optimum capacity utilization	70%
Working days	300
Manpower	15

Financial Aspects

 Fixed Capital

Land & Building Amount (Rs. lakh)

Particulars	Amount
Land 300 m 2	00.20
Building 180 m 2	16.00
Total	16.20

Machinery and Equipment Amount (Rs. lakh)

Description	Amount
Pipe bending machine hand operated with fixtures locally fabricated -5, Arc welding sets-2, Gas cutting set with torch, regulators etc.-2 sets, Bench drilling machine 13 mm capacity-1, Portable drilling machine 13 mm capacity-2, Flexible shaft grinder 150wheel mm-2, Double ended bench grinder 300 mm size-1, Hand shearing machine 3 mm capacity-2, Baking oven 2.5 x 2 m x 2 m size 20 kW-2, Hand Press-3, Cleaning, Pickling, Phosphating tanks 2.5 x 2 x 2 m-10, Compressor with spray gun unit for painting-2, Riveting machine portable type electrical-1, Hand tools, instruments. Fixtures and dies.	O5.80
Erection & electrification of machinery @ 10% cost	00.58
Office furniture & fixtures	00.82
Total	07.20

Pre-operative Expenses Amount (Rs. lakh)

Consultancy fee, project report, deposits with electricity department etc

00.80

 Total Fixed Capital Amount (Rs. lakh)

(9.1.1+9.1.2+9.1.3)

24.20

 Recurring expenses per annum  

Personnel Amount (Rs. lakh)

Designation	No.	Salary/ month	Amount
Factory Manager	1	10,000	01.20
Supervisory staff	1	08,000	00.96
Office Assistant	1	06,000	00.72
Technician	3	05,000	01.80
Skilled workers	4	04,500	02.16
Unskilled workers	5	03,000	01.80
Perquisites @15 %			01.60
Total	15		09.70

 Raw Material including packaging materials Amount (Rs. lakh)

Particulars	Qty (t)	Rate/t	Amount
1. M.S Angle Iron 40 mm x 40 mm x 3 mm and 38 mm x 38 mm x 3 mm	13.50	0.40	05.40
2. M.S Tubes 38.10 mm o.d. x 1.6/1.22 mm thick	36.00	0.38	13.68
3. M.S Tubes 25.40 mm o.d x 1.6/1.22 mm thick	22.00	0.40	08.80
4. M.S Tubes 19.5 mm o.d x 1.22 mm thick	13.50	0.41	05.54
5. M.S Strips 1.25 mm x 25 mm	13.50	0.30	04.05
6. Castor wheels	300 No	LS	01.44
7. Nuts, bolts, screws, washers, flats, rubber items, paint etc.	LS	LS	02.87
Total			38.90

Utilities Amount (Rs. lakh)

Particulars	Amount
Power	01.90
Water	00.10
Total	02.00

 Other Contingent Expenses Amount (Rs. lakh)

Particulars	Amount
Repairs and maintenance @10%	00.70
Consumables & spares, others	00.60
Transport & travel	00.90
Publicity, postage, telephone	01.20
Insurance @1%	00.20
Total	03.60

 Total Recurring Expenditure Amount (Rs. lakh)

(9.2.1 + 9.2.2 + 9.2.3 + 9.2.4)

54.20

Working Capital Amount (Rs. lakh)

Recurring expenses for 3 months

13.50

 Total Capital Investment Amount (Rs. lakh)

Fixed capital (Refer 9.1.4)	54.20
Working capital (Refer 9.3)	13.50
Total	67.70

 Financial Analysis

 Cost of Production (per annum) Amount (Rs. lakh)

Recurring expenses (Refer 9.2.5)	54.20
Depreciation on building @ 5%	00.80
Depreciation on machinery @10%	00.64
Depreciation on furniture @ 20%	00.16
Interest on Capital Investment @ 12%	08.20
Total	64.00

 Sale Proceeds (Turnover) per year Amount (Rs. lakh)

Item	Qty	Rate/t (Rs.)	Amount
250 nos. Fowlers hospital beds @ Rs.8000/ each	375	18,000	67.50
150 nos. General purpose hospital beds @ Rs.2500/- each	225	6,000	13.50
Sale of scrap			03.00
Total	600	-	84.00

Net Profit per year
=	Sales - Cost of production
=	84 – 64
=	Rs. 20 lakh

Net Profit Ratio
=	Net profit X 100 ---------------------- Sales
=	20X 100 ------------------- 84
=	23.8 %

 Rate of Return on Investment

=	Net profit X 100 ---------------------------- Capital Investment
=	20 X 100 ----------------------- 67.70
=	30 %

 Annual Fixed Cost Amount (Rs. lakh)

All depreciations	01.60
Interest	08.20
40% of salary, wages, utility, contingency	06.12
Insurance	00.20
Total	16.12

 Break even Point  

=	Annual Fixed Cost X 100 ----------------------------------- Annual Fixed Cost + Profit
=	16.12 X 100 ------------------ 16.12 + 20
=	44.6 %

ADDRESSES OF MACHINERY SUPPLIERS
1. M/s. Kwality Machine Tools, No. 25, J.C. Road, Near VSL
Building, Bangalore-2
2. M/s. K.G. Khosla & Co. Mathura Road, Badarpur, Delhi
3. M/s. Indian Oxygen Ltd., Nagaraj Road, New Delhi
4. M/s. Perfect machine Tools, Grant Road, Bangalore-1
5. M/s. Batliboi Engineers Pvt. Ltd., 99/2, 99/3 N.R. Road,
Bangalore.