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PAPER CUP

I. PRODUCT AND ITS USES

This project profile envisages the use of drinking Tea and Cool Drinks. The paper cup finds

extensive use in railways, Hotels, household appliances, domestic applications. The product

ranges from 150 ml to 300 ml, this manufacturing activity may well be set-up as small-scale

units.

As there is a good production of instead of plastic cups, weight less as well as easy to

carry railway Tea vendors, no environment pollution, increase the demand of paper cups, user

customer are to be encouraged in the modern days.

MARKET:

Because the paper cup industry is in a boom, the requirement of drinking items like Tea,

coffee, Cool Drinks for railways, Hotels, household appliances, domestic applications as well as

for replacement of plastic cups, Glass items. There is a tremendous requirement of day-to-day

life.

II. MARKET POTENTIAL

III. PRODUCTION TARGETS (Per Annum)

Quantity – 56,43,000 NosValue – Rs. 29,18,000

IV. BASIS & PRESUMPTIONS

1. Single shift of 8 hours a day, 25 days a month and 300 days in an year is presumed.

Efficient machines and workers are also presumed.

2. Minimum 6 month period is considered for achieving full capacity utilization.

3. Labor rates are as per the prevailing rates.

4. An average interest rate of 15% is considered.

5. The estimates are drawn for a production capacity generally considered techno-

economically viable for model type of manufacturing activity.

6. The information supplied is based on a standard type of manufacturing activity viable

for model type of manufacturing activity.



7. The information supplied is based on a standard type of manufacturing activity utilizing

conventional techniques of production at optimum level of performance.

8. Costs in respect of machinery and equipment, raw materials and the selling prices of the

finished products etc., are generally prevailing at the time of preparation of the project profiles and may vary depending upon various factors.

Whereas some names of manufacturers, suppliers of machinery and equipment, raw materialsetc. are indicated at the end of the profile, those are by no means exclusive or exhaustive.

V. IMPLEMENTATION SCHEDULE

Normally six months are required for the complete implementation of the project,including machinery erection, raw materials procurement etc.

VI. PRODUCTION DETAILS AND PROCESS OF MANUFACTURE

The process of manufacture consists of the following operations.



The process of manufacturing Poly coated paper purchased from market then cut in the required

sizes, fabricate outer shell then put in the bottom mould pressed and pasting and keep it in the

final paper cup mould. After making the cup checked random pieces for customer requirement.

Then packing by plastic cover in 100 paper cups in a set.

VII. LAND & BUILDING

Land 250 sq.m. }

} OwnBuilding 150 ” }

VIII. MACHINERY & EQIUPMENT

Sl.No. Description No. Rs.

1

Full Automatic Operation of

Paper cup Machine and other

assembly

1 6,00,000

2 Dyes and Moulds L.S. 50,000

Total6,50,000

Pre – operative expenses 1,00,000

Total 7,50,000

IX. STAFF AND LABOUR (Per Month)

Sl.No. Description Nos. Salary (Rs.)

1 Skilled Workers 3 6,000

2 Unskilled Workers 3 9,000

Total 15,000

Perquisites 2,000

Total 17,000

Say 17,000



X. RAW MATERIALS (Per Month)

1

Special type of paper

(Poly coated paper) 2 Tones @Rs.60, 000/-

1,20,000

2 Printing chemicals and Dyes L.S. 5,000

3 Packing Material L.S. 5,000

Total 1,30,000

XI. UTILITIES (Per Month)

1 Power 3000 units @ Rs.3.80/- 11,400

2 Water 300Total 11,700

XII. OTHER EXPENSES (Per Month)

1 Postage and Stationer 500

2 Telephone 500

3 Consumable Stores 500

4 Repair and Maintenance 500

5 Transport Charges 1,000

6 Insurance 500

7 Misc. Expence 500

Total 4,000

XIII. WORKING CAPITAL FOR THREE MONTHS

1 Salary & Wages 17,000 x 3 51,000

2 Raw Materials 1,30,000 x 3 3,90,000

3 Utilities 11,700 x 3 35,100

4 Other expenses 4,000 x 3 12,000

Total 1,62,700 4,88,100



XIV. TOTAL CAPITAL INVESTMENT

1 Fixed capital 7,50,000

2 Working Capital 4,88,100

Total 12,38,100

MACHINERY UTILIZATION

The whole operation of Tea cup and Cool Drink Cups making process is involved

simultaneously. So the machine utilization has been taken 75% per day on single shift.

XV. COST OF PRODUCTION (Per Annum)

1 Total Recurring Expenditure 19,52,400

2 Depreciation on machinery @ 10%on 6,00,000 60,000

3 Depreciation on Moulds/Dies @ 25% on 50,000 12,500

5 Interest on total capital @ 15% on14, 96, 100 11,25,500

Total 21,27,400

XVI. TOTAL SALES (Per Annum)

Annual production of paper cups 150 ml (Tea cup)

300 ml (cool Drink cup) Saleable materials 59,40,000 NosAfter allowing 5% rejection 2,97,000 Nos 56,43,000 Nos

XVII. PROFITABILITY (Per Annum)

Profit 27,00,000 – 21,27,400

= 5,72,600

Net Profit Ratio : Net profit x 100 / Turn over

= 5,72,600x 100 / 27,00,000



= 15.4%

Rate of Return: Net profit x 100 / Total Investment

= 5,72,600x 100 / 12,38,100

= 46.2%

XVII. FIXED COST

Depreciation of Machinery 28,500/-Interest on total investment 98,250/-

Rent 48,000/-

40% on salary and wages 1,62,700/-

40% of Other expenditure 36,000/-3,63,450/-

B.E.P. Fixed Cost x 100 / Fixed Cost + Profit

= 3,63,450x 100 / 3,63,450+ 5,72,600

=3,63,450x 100 / 9,46,050

= 39.4%

XIX. NAMES AND ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

1. M/s. V Agency,

125/20, GK Industrial Este

Alapakkam main road,Porur, Chennai.

2. M/s. Jayveer Traders,

171-D, Raj Building, Thoddarayan koil street,Kattoor, Coimbatore, Tamil nadu.

3. M/s. Rockford Business Links,

K-120/6, Bougain villa,Anna nagar East,

Chennai.



XX. NAMES AND ADDRESSES OF RAW MATERIAL SUPPLIERS

1. M/s. Jagdish Fine Arts,

4/687/A, Husain Colony,Sivakasi, Tamil Nadu.

2. M/s. Vidya Laminators Private Limited,

112/236, Swaroop Nagar,Kanpur, Uttar Pradesh.

3. M/s. Lampack Paper Products,A-1, Industrial Estate,

Visakapatnam, Andrapradesh.

4. M/s. Kamakshi Lamipack private Limited,

101, Sidco Aiema Tower,Ist Main Road, Industrial Estate,

Ambattur, Chennai.



PROJECT REPORT

ON

PAPER CUP PRODUCTS

E.PERUMAL.B.E.,

M/s. VIDYA PAPER PRODUCTS

(The company name Under Proposal)

28/1A , M.C. Road, Koothampakkam Village

Vadugathipatti Post,Madanur via,

Vellore Dist – 635 804

Manufacture of PAPER CUPS



(Disposable & Bio-degradable)

paper cup1

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