CORRUGATED PAPER BOX

PRODUCT CODE : NA

QUALITY AND STANDARDS : As per customer’s specifications

Paper Boxes are available in 2 Ply, 3 Ply,
5 Ply, 7 Ply and 9 Ply

PRODUCTION CAPACITY : 180 MT (Per Annum)

Value : Rs. 96,61,000/-

MONTH AND YEAR : May, 2014

OF PREPARATION

PREPARED BY : Sh. Brajendra Kumar

Assistant Director (Chemical)

1. INTRODUCTION
Corrugated Paper boxes are extensively used in the packaging of industrial as
well as consumer goods. In some of products like crockery, electronic items,
automobile components, glass and cigarettes, pharmaceuticals, soaps & cosmetics,
biscuits, hosiery, toys, rubber & rubber products, refrigerator, cooler & fans, proper
type of packaging becomes very important.

2. MARKET POTENTIAL
With the steady rise in the industrial production, the demand for corrugated
paper boxes increasing every year. These boxes have got distinct advantages such as
light in weight, easy to fabricate as per required specifications. The corrugated
papers and boards may also find market in the rural areas for packing of fruits,
vegetables & eggs.

3. BASIS AND PRESUMPTIONS

The estimates are drawn for a production, capacity generally techno-
economically viable for model type of manufacturing activity. The information
supplied is based on a standard type of manufacturing activity utilizing
conventional technique of production and optimum levels of performance. The costs
in respect of machinery and equipments, raw materials and selling prices of the
furnished products etc. are those generally obtaining at the time of the preparation
of project profiles and may vary depending upon various factors. Whereas some
names of manufacturing/supplies of machinery and equipments, raw material are
indicated at the end of profile, these are by no means exclusive or exhaustive.

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Chemical Division

4. IMPLEMENTATION SCHEDULE
Quotation period _ 10 days

Provisional registration _ 10 days

Sanction of loans _ 2 months

Delivery and erection of machine, _ 1 month

electrification etc.

5. TECHNICAL ASPECTS
5.1. Process of Manufacturing
Calculation has been based on single corrugated sheet pasted with one sheet
of craft paper. Two paper reels are run together on corrugated machine. One layer
of paper becomes corrugated after passing through the heated fluted rolls and other
is brought in contact with the former having been glued at the tips. These two get
pasted together and are wound in rolls. These will be procured on job work. By
cutting this roll with board cutters and gluing the corrugated side on pasting
machine. A double face board is produced by the 3rd ply of paper over it. This
board is kept under a sheet pressing machines for some time for setting of wet glued
sheets. Similarly board to board can be pasted to form thicker board i.e. 5 Ply, 7 Ply
and 9 Ply etc.

5.2. Quality Control and Standards

As per customer’s specification, these are available in 2Ply, 3Ply, 5Ply, 7Ply &
9 Ply.

5.3. Production Capacity

Production : 180 Tons

5.4. Motive Power

7 HP

5.5. Pollution Control

No special Pollution control measures are required. NOC is to be taken from
Pollution Control Board before commencement of the project.

5.6. Energy Conservation

Proper maintenance and judicial use of power operated machines will
conserve the energy

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 Corrugated Paper Box

6. FINANCIAL ASPECT
6.1. Fixed Capital
Land &Building: Covered area of 200 sq. ft. & uncovered area of 50 sq. ft. on rent.

6.1.1. Machinery and Equipments

S.No. Particulars Amount (Rs.)
i) Cutting machine 65,000
ii) Paper Pasting machine size 75" complete with motor 90,000
iii) Stapler 36” 45,000
iv) Testing Equipment, Physical Balance meter scales 15,000
v) Generator set 5 KVA 45,000
vi) 2 Bar Rotary machine for creasing & sizing 1,00,000
vii) Accentric Slotter 1,80,000
viii) Installation & electrification 54,000
ix) Officer furniture 76,000
TOTAL 6,70,000

6.2. Working Capital (per month)

6.2.1. Personnel
S. No. Designation No. Salary (Rs.) Amount (Rs.)
1 Manager (self) 1 15,000 15,000
2 Production Supervisor 1 11,000 11,000
3 Salesman 1 9,000 9,000
4 Skilled workers 2 9,500 19,000
5 Unskilled workers 2 8,500 17,000
TOTAL 71,000
Perquisite@ 15% 10,650
Grand Total 81,650

6.2.2. Raw Material

S.No. Description Qty Rate Amount (Rs.)
1 Craft Papers 15 tons Rs.30/kg 4,50,000
2 Glue 1 ton Rs.10/kg 10,000
3 Staples wire etc. 500 kgs. Rs.40/kg 20,000
4 Packaging Material 20,000
TOTAL 5,00,000

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Chemical Division

6.2.3. Utilities
S.No. Description Amount (Rs.)
1 Power 2,000 units @ Rs.5/- per unit 10,000
2 Diesel 100 liter @ Rs.50 per liter 5,000
3 Water 500
TOTAL 15,500

6.2.4. Other Contingent Expenses

S. No. Description Amount (Rs.)
1 Rent 15,000
2 Postage, stationery Telephone 1,000
3 Repair & Maintenance 2,000
4 Transport & Travelling 4,500
5 Consumable Stores 2,000
6 Corrugation charges @ Rs.5 per kg 70,000
7 Misc. Expenses 5,500
TOTAL 1,00,000

6.2.5. Total Recurring Expenditure (per month)

S. No Description Amount (Rs.)
1. Raw Material 5,00,000
2. Salary & Wages 81,650
3. Utilities 15,500
4. Other Expenses 1,00,000
Total 6,97,150
Say 6,97,000

6.3. Total Capital Investment

Total Fixed Capital Rs. 6,70,000
Total Working Capital (for 3 months) Rs. 20,91,000
Total Rs. 27,61,000

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 Corrugated Paper Box

7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
S.No. Description Amount (Rs.)
1 Recurring Expenditure 83,64,000
2 Depreciation on Machinery & Equipment @ 10% 54,000
3 Depreciation on furniture @ 20% 15,200
4 Interest on capital investment @ 15% per annum 4,14,150
Total 88,47,350

7.2. Turnover (per annum)

Considering 2.5% processing wastage;
Total production = 175.5 tons
Wastage = 4.5 tons

Sales of 175.5 tons paper boxes @ Rs.56,000 per ton Rs. 98,28,000
Sales of 4.5 tons wastage @ Rs. 7,200 per ton Rs. 32,400
Total Rs. 98,60,400

7.3. Net Profit (per annum)

= Turnover – cost of production
= Rs. 98,60,400 – 88,47,350
= Rs. 10,13,050

7.4. Net Profit Ratio

Net profit per year
= X 100
Turnover per year

10,13,050
= X 100
98,60,400

= 10.3 %

7.5. Rate of Return

Net profit per year
= X 100
Total Capital Investment

10,13,050
= X 100
27,61,000

= 36.7 %

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Chemical Division

7.6. Break-even Point

Fixed Cost Value (in Rs.)
Depreciation on Machinery @ 10% per annum 54,100
Depreciation on Furniture @ 20% per annum 15,200
Interest on total investment 4,14,150
Rent 1,80,000
40% of salary & wages 3,91,920
40% of other expenses 4,08,000
Total 14,63,370

B.E.P
Fixed Cost
= X 100
Fixed Cost + Net Profit

14,63,370
= X 100
14,63,370 + 10,13,050

= 59.1%

LIST OF MACHINERY SUPPLIERS

1. M/s Nagpal Industries ,1062 Burtan Market

Sadar Bazar, Delhi -6

2. M/s Yesh Mech. Works

374, Azad Market, Delhi -6

3. Paper converting machinery ,

B-170, New Okhla Indl. Estate, Phase I, New Delhi

LIST OF RAW MATERIAL SUPPLIERS

1. M/s Unisystem Pvt.Ltd.

15/1, Mathura Road, Faridabad

2. Local Dealer in Delhi

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