DPR On Wooden Furniture Manufacturing Unit

Project Profile on Wooden Furniture Manufacturing Unit
National Institute of Micro, Small and Medium Enterprises (ni-msme)

[an Organisation of Ministry of MSME, Govt. of India]
Yousufguda, HYDERABAD – 500 045
1.INTRODUCTION
Wooden furniture’s are a symbol of Kerala tradition. They were used in kerala from
100s of years ago. This project is meant to setup a manufacturing unit of wooden
furniture such as Chair, Coat, windows and door etc .The unit will undertake the job
work also. The unit envisages manufacturing of wooden furniture on different designs
out of quality wood like Teak, Anjili, Rose wood etc. But mainly on teak wood.
2.MARKET
As the furniture would not have any fixed brand or company name, therefore, there
would be less competition. The demand of wooden furniture and wooden building
materials is increasing as construction and housing industry expand. Attractive and
genuine wooden furniture have good access in market. The demand for the furniture
made up of woods is growing due to the increased standard of living of people and
outlook. On occasions like wedding, it has become customary to gift wooden furniture
like double bed, sofa, dressing table, dining table to the daughter. The finished products
can also be sold through furniture marts
 MANUFACTURING PROCESS
Courtesy:
The line of process is used for wooden furniture is made as per the measurements;
shaping, bending & chiseling as per design; finishing touch with sand paper; finally
apply varnish/paint/lamination; and furniture can be laminated using laminated sheet.
BASIS AND PRE ASSUMPTIONS
1.0 The production is based on a single shift basis of 8 hours per day and working days in a
month
Laborer will be engaged on monthly basis keeping in view the present
1.1 rate
prevailing in the market
1.2 Land and buildings are rented.
4.The unit will get subsidy for the power requirement as it will get registered under MSME
Act
4.FIXED CAPITAL
4.a Land & Building :- Rented building of 700 sq ft of rent @2000 per month.
4.b Machinery and Equipment
Particular Quantity Rate Amount
1 15’’combi max planner 1 75000 75000

2 3 HP Single phaseMotor 1 12000 12000
3 Blade Grinder with motor 1 21000 21000
4 Hand drill machine 1 24000 24000
5 Sander machine 1 28000 28000
6 Stand type drilling machine with motor 1 2000 2000
7 12’’ planner 1 40000 40000
Rixo(mini) 1 85000 85000
Leith 38000
9 Cutter 1 15000 15000

10 Hand Tools & other small 25000 15000
11 equipments etc
TOTAL 355000/
4 c. furniture expenses 10000/

14.5
Power requirement for the unit HP
5. WORKING CAPITAL
5 a. Raw material required for one month
Courtesy:
Sl.No Items Qty Rate Amount
1 Woods of different type 5Cum 25000 125000

2 Plane glass 3 No 1200 3600
3 Fevicol 25Kg 250 6250
200 sq
4 Ply ft 35 7000
200 sq
5 Sun mica ft 42 8400
Total 150250
5 b. wages and salaries
Sl No Designation No Rate Amount

1 Workers 4 9000 36000
Total 36000
5 c. Utilities and Contingencies/Month
1. Rent - Rs.2000/-
2. Power charges - Rs.1500/-
3. Miscellaneous - Rs.500/-
- Rs
Total 4000/-
6 Total Working Capital Requirement

1. Raw materials for one month - Rs. 150250/-
2. Wages and salaries for one month -Rs 36000/-
3. Utilities and contingencies for one month -Rs. 4000/-
-Rs
Total working capital requirement of the unit 190250/-
 TOTAL CAPITAL
1. Fixed Capital - Rs. 365000

570750/
2. Working Capital( 3 months) - Rs. -
Total capital investment - Rs 935750/-
Courtesy:
8.SOURCES OF FUNDS
1. Own Capital(20% of project cost) -Rs 187150
2.Composite Loan from Bank Rs.748600
9.COST OF PRODUCTION PER ANNUM
Total recurring expenditure per annum

a) Raw materials - Rs.1803000/-
b) Wages and Salaries -Rs. 432000/-
1. c) Utilities and contingencies -Rs. 48000/-
2. Depreciation of machinery @15% -Rs 54750/-
3. Interest on bank loan @12% -Rs 89832/-
Total - Rs.2427582/-
 TURNOVER PER ANNUM
Sl.No Items Qty Rate Amount

1 Furniture: Coat 100 12000 1200000
2 Building material:1. Windows 70 7000 490000
2.Doors 90 10000 900000
3. Chairs 60 7000 420000
Total 3010000
1.PROFITABILITY
11 a. NET PROFIT (BEFORE TAXATION)
1 TURNOVER 3010000
2 COST OF PRODUCTION 2427582
Total (1-2) 582418
11.b NET PROFIT RATIO

NET PROFIT *100/TURN OVER PER
YEAR =582418*100/3010000
Courtesy:
= 19.34%
11.c RATE OF RETURN ON TOTAL INVESTMENT
NET PROFIT*100/TOTAL
= 582418*100/935750=
INVESTMENT 62.24%
12.a FIXED COST
Rent Rs: 24000/-

Total Depreciation[ Machinery & furniture] Rs: 54750/-
Interest on Total Investment Rs: 89832/-
40 % of Salary & Wages[ 432000*12/ 40%] Rs: 172800
40% of utilities & other contingent expenses[ 48000*12/ Rs: 19200/-
40%]
Total: Rs: 360582
12 b BREAK- EVEN ANALYSIS
Fixed cost x 100 = 38.23%

Fixed cost + Net Profit
Courtesy:

DPR On Wooden Furniture Manufacturing Unit

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Project Profile on Wooden Furniture Manufacturing Unit

National Institute of Micro, Small and Medium Enterprises (ni-msme)

BASIS AND PRE ASSUMPTIONS

4.b Machinery and Equipment

Particular Quantity Rate Amount

1 15’’combi max planner 1 75000 75000

9 Cutter 1 15000 15000

4 c. furniture expenses 10000/

1 Woods of different type 5Cum 25000 125000

5 b. wages and salaries

Sl No Designation No Rate Amount

5 c. Utilities and Contingencies/Month

6 Total Working Capital Requirement

1. Fixed Capital - Rs. 365000

1. Own Capital(20% of project cost) -Rs 187150

2.Composite Loan from Bank Rs.748600

9.COST OF PRODUCTION PER ANNUM

Total recurring expenditure per annum

 TURNOVER PER ANNUM

Sl.No Items Qty Rate Amount

11 a. NET PROFIT (BEFORE TAXATION)

11.b NET PROFIT RATIO

11.c RATE OF RETURN ON TOTAL INVESTMENT

12.a FIXED COST

Rent Rs: 24000/-

12 b BREAK- EVEN ANALYSIS

Fixed cost x 100 = 38.23%

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