PROJECT PROFILE MAGNETIC BUTTONS

A. INTRODUCTION & USES: Magnetic Buttons are mostly used in the readymade garments, hand bags etc. they add grace to the articles on which they are fixed and are being imported at present a few parties are making in a small scale but they are not of good quality, there is a very good scope of these items. Magnetic buttons consists of two parts. In one part a permanent magnet is housed in brass casing. The other part consists of an iron washer and a pin is riveted in a centre. When the two parts come closer, parts are assembled due to magnetic force.

B. Production Target: It is proposed to manufacture 8,40,000 Nos of Magnetic Buttons set per annum. C. BASIS AND PRESUMPTION: (i) The unit is expected to work at 75% efficiency on 8 hrs. Single shift basis for full capacity utilizations. (ii) The full capacity utilisation will be achieved in three years. 70% in the first year followed by 85% in the next year and the 100% in subsequent years. (iii) Labour and wages mentioned as per prescribed minimum wages and the proprietor is considered as a manager. (iv) Interest considered @ 12% in the project provide for recurring and non-recurring investment. (v) The cost of land, construction charges, cost of machinery and equipment, raw materials and consumables other expenses etc. initiated in the profile are based on the prices prevailing at the time of project preparation. Therefore, they are subject to necessary changes from time to time based on local conditions.

D. IMPLEMENTATION SCHEDULE: Activity Survey for collection of data in respect of demand, raw material, including power and fuel availability of technology, pollution control Arrangement for margin money Preparation of project document and registration and other clearance Financial assistance Selection of site and development of land Make shift office Purchasing of machines & recruitment of staff Construction of building & selection of machinery Installation of machinery & purchase of raw materials Trial production E. TECHNICAL ASPECTS: 1. MANUFACTURING PROCESS: Brass strip of particular width are feed in to the power press equipped with strip feeding mechanism and the brass cap is drown. These components are then given gold like finish by electroplating which is done from outsourcing. Small rivets are are to be procured from the party having the auto lathe. The M.S Washer along with the rivets are also electroplated from outsourcing and then M.S washer and rivets are assembeled. The ring shaped Magnet is placed in the brass cap with the washer plain and the notches are bent to retain the magnet inside. 2. QUALITY STANDARDS AND SPECIFICATIONS: It is advised to procure a few good quality imported samples of magnetic buttons and made accordingly. There is no IS specification for this item. 3. POLLUTION CONTROL: These types of units are is not producing any effluents or any other polluting materials. Therefore pollution control measures are not taken into account. 4. ENERGY CONSERVATION NEEDS: General awareness is to be created for economic use of electricity at all points. Capacitors may be used at suitable points for energy conservation. All machinery and equipment should be properly lubricated and maintained so that they consume less amount of power in use. Period Starting to Completion 0 0 1st 2nd 3rd 3rd 4th 5th 6th 7th 1 Month 1st Months 2nd Months 3rd Months 4th months 4th Months 5th Months 6th Months 7th Months 8th Months

F FINANCIAL ASPECT: (i) Land & Building: Land and building Rented Covered area 150 sq.mtrs. for Rs. 10,000/- per month. (ii) Fixed Capital on Plant & Machinery: SI.No. Description 1. 2. 3. 4. 5. 6. 7. 8. 9. Power Press 10 Ton Cap motorised with automatic strip feed mechanism Power Press 10 Ton Cap motorised Hand Press No. 3 & 5 Roll Shearing Machine to cut Brass sheet to required width motorised Die and Tools Common bench and Hand Tools Total Office furniture, almirah, office instruments etc. Electrification & installation charges @ 10% of machinery cost Total Plant & M/c Cost (iii) Pre-operative expenses @ 2.0 % -------------- 12,500 TOTAL FIXED CAPITAL (i+ii+iii) ----- 6, 37,500 4. WORKING CAPITAL (PERMONTH): 1. Staff & Labour Expenses: (a) Administrative: SI.No. Description 1 Manager Nos. 1 1 1 Rate (Rs.) 10,000 7000 5500 Amount (Rs.) 10,000 7,000 5,500 L.S. Ind/Imported Ind. Ind. Ind. Ind. Ind. Ind. Qty. Value (Rs.) (Nos.) 1 1 2 1 1 2,25,000 1,20,000 50,000 85,000 45,000 25,000 5,50,000 20,000 55,000 6,25,000

2 Production Supervisor 3 Clerk/Accountant/Store keeper

5 Skilled Workers 6 Semi skilled Workers 7 Helpers Total Labor Benefits / Perquisite @ 22% of salary Grand Total II. Raw Materials (per month): SI.No. Description 1. 2. 3. 4. 5. Permanent Ring Magnet Brass Sheet M.S Sheet Pan Headed Rivets Packing Case & Box Cartons & Plastic Bags TOTAL Qty.

3 2 1

4200 2700 2600

12,600 5,400 2,600 43,100 10,000 53,100

Value (Rs.) 1,05,000 59,400 13,750 7,000 2,500 1,87,650

70000 Nos 330 Kg 550 Kg 70000 Nos L.S

III. Utilities (per month): Power @ 3.80/unit for 10 KW Water L.S IV. Other Contingent expenses (P.M.): SI.No. Description 1. 2. 3. 4. 5. 6. 7. 8. 9. Rent Postage and Stationery Telephone Repair and maintenance Oils & Lubricants Consumable stores Transport charges Electroplating Charges Insurance Values (Rs.) 10000 500 500 500 2500 2000 1500 3000 500 Rs 9,500 Rs. 2000

10. Sales expenses 11. Misc Expenses Grand Total

800 500 22,300

V. Total recurring expenditure (per month): 1. Staff and labour 2. 3. 4. Raw material Utilities Other contingent expenses Total

53,100 1,87,650 11,500 22,300 2,74,550

VI. Total working capital ( 3 months basis) 5. Total capital investment: 1. Machinery and equipment 2. Working Capital Total

8,23,650

6,37,500 8,23,650 14,61,150

6. Financial Analysis: 1. Cost of Production (Per Year) : 1. Total recurring cost per year 2. 4. 5. Depreciation on plant and machinery @ 10% Depreciation on office equipments @ 20% Interest on total capital investment @ 12% Total 2. Total Sales (per year): By sale of 8,40,000 Buttons @ Rs4.75/ Set = Rs. 39,90,000 By sale of scrap = Rs. 10,000 Total revenue = Rs. 40,00,000

32,94,600 55,000 4,000 1,75,338 35,28,938

2. Net Profit (per year) Before tax = Total sales cost of production = Rs. 40,00,000 - 35,28,938 = Rs. 4,71,062 4. Profit Ratio:= Net profit x 100 / Total turn over =4,71,062.x 100 /40,00,000 = 11.78 %

5. Rate of Return: = Net profit x 100 / Total investment = 4,71,062 x 100 / 1,461,150 = 32.24% 6. Break Even Point: a) Fixed cost (per year): Depreciation on plant and machinery, dies, jigs and 1. fixtures @ 10% 2. 3. 4. 5. 6. Depreciation on office equipments @ 20% Interest on total capital investment @ 12% 40% of salary and wages 40% of other expenses including utilities and excluding rent Rent Total fixed cost (FC) BEP = FC x 100/ FC + Profit = 7,23,458 x 100 / (7,23,458+4,71,062) = 60.56 % ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS: 1. M/s. Tools Today (India), D-52, Phase-V, Focal Point, Ludhiana-141101 2. M/s. Batliboi & Co., Parliament Street, New Delhi-110001 6

55,000 4,000 1,75,338 2,54,880 1,14,240 1,20,000 7,23,458

3. 4.

M/s. Ashoka Machine Tools Corpn., A-15, Mayapuri Indl. Area, New Delhi. M/s. Amteep Machine Tools (P) Ltd., 17/7, Mathura Road, Faridabad.

NAMES AND ADDRESSES OF RAW MATERIALS SUPPLIERS: Raw material can be purchased from the local suppliers available in the market.