THIS STUDY HAS BEEN SPONSORED BY

THE DEPARTMENT OF SCIENCE AND TECHNOLOGY

OF
THE GOVERNMENT OF INDIA
 PREFACE

Sultanpur is one of the less developed d i s t r i c t s of

Uttar Pradesh. Agricultural potential (in terms of rich
a l l u v i a l s o i l , a v a i l a b i l i t y of water resources, e t c . ) has
not been fully exploited due to small land holidings and
low income of the farming community. Of l a t e , there has
been a r e a l i z a t i o n on the part of the State and the Central
Government that there is~ an imperative need to improve the
economic condition of the people of the d i s t r i c t through
large scale and small scale i n d u s t r i a l i z a t i o n . Sultanpur,
being a zero industry d i s t r i c t , receives c e r t a i n benefits
for entrepreneurs in the form of tax holidays, banking loans,
subsidies, e t c .

The Society of Management Science and Applied Cybernetics

(SOMAC) is a member of the multi-agency team involved in the
work of the Natural Resources Data Management System (NRDMS)
of the Department of Science and Technology, Govt. of India.
SOMAC has established a Data Base at Sultanpur, and it also
works on problems of planning and decision making for other
centres of NRDMS. The study team/ of SOMAC also apply concepts
of Systematic s (integrated science of Systems and
Cybernetics) in such problems.

At the request of the d i s t r i c t a u t h o r i t i e s of Sultanpur,

SOMAC undertook a study to explore the p o t e n t i a l i t y of small
scale and agro based industries as a part of the NRDMS pro-
gramme. The NRDMS DATA BASE helped the study in the following
ways : -

(a) by providing data on natural resources (including

human resources);

(b) by providing information on the infrastructure

a v a i l a b i l i t y , road network, i r r i g a t i o n network,
water resources, power a v a i l a b i l i t y (from GIS and
other-wise) ;

(c) by providing in-depth analysis of various sectoral

theme s.

However,' in addition, it was required to make a Techno -

Economic Survey of the e n t i r e d i s t r i c t and in c e r t a i n cases
of the surrounding regions as well.

Three aspects of the study are : (i) development of

methodology, (ii) conducting a Techno - Economic survey,
( i i i ) recommendations regarding choice of industries and
s t r a t e g i e s for t h e i r implementation.
 The following considerations have been kept in view
in making a framework for industrial planning of a d i s t r i c t :

(a) A d i s t r i c t has to depend on surrounding areas

for raw materials, markets and infrastructural
f a c i l i t i e s ; in other words, a d i s t r i c t has to be
conceived as an open system which interchanges
raw materials, resources and energies with other
areas.

(b) It is imperative in the l i g h t of (a) to make a

background study of neighbouring areas (1) to
study whether resources of the l a t t e r can be
pooled to set up a viable industry, (2) to decide
on optimal location of an e n t e r p r i s e , (3) to
identify the markets of various products. A
logical analysis of t h i s aspect is called a
proximity analysis.

(c) There are two approaches in such planning problems

: (1) Cognitive Approach which frames the logical
steps for understanding various aspects of an
overall system, c o l l a t e s threshold information
for deciding what to do ; (2) Objective Approach
which is entirely based on quantitative infor-
mation, e.g. on raw materials, demand estimates
for various products, transport, power, e t c . In
effect, a good plan is one where both these
approaches are incorporated.

There are five c r i t e r i a for selection of small scale

industries : (i) they can be resource - based, (ii) they can
be market -orieinted, ( i i i ) they can be labour - oriented,
(iv) they may be ancillary to the requirements of large
industrial plants like the ones located at Jagdishpur,
(v) "Foot loose" industries to cater to national demand.

A long or mid-term strategy for growth orientation

of an underdeveloped region is provided by inverse planning
which advocates injection of inputs in a region which is not
endowed by nature. The Jagdishpur complex is an example of
inverse planning practised in the Sultanpur d i s t r i c t . The
chain of heavy industries along with ancillary units will
usher in a self - sustained growth, if necessary infrastructural
support is maintained.

While making recommendations for the package of

industries, quantitative information emerging from the
Techno - Economic Survey and the cognitive aspects of
proximity analysis have been taken in view. Thus a break

(ii)
factory at Sultanpur started on the available wheat pro-
duction of the district may have all neighbouring districts
as markets; a corn flake unit at Kadipur may take advantage
of large production of maize at Jaunpur and Bahraich districts;
an Ayurbedic or Pharmaceutical unit at Amethi may be run on
the production of amla not only of the Sultanpur district
but utilising the same fruits of Pratapgarh and Allahabad
districts. Practical aspects have been given primary
emphasis in the report. Recommendations have been made in
a manner as to help an entrepreneur get necessary knowledge
in setting up a unit.

This study has made recommendations for the first

phase of small scale manufacturing units in the district. Based
on reaction of the district authority of Sultanpur and the
UP Government, a recommendation for the second phase will
be made.

This study has been made by a two-member team compri-

sing Mr A.K. Bhattacharyya* and the undersigned. The Techno-
Economic Survey could not be completed without sincere coop-
eration and keen interest of Mr Alok K.Jain, District Magi-
strate, Sultanpur, at whose direction necessary assistance
was provided by Mr I.M. Gupta, General Manager, District
Industrial Centre, and his staff. The Government of U.P.
also showed keen interest in the study. The President of
SOMAC (Mr.Nitin Desai, formerly, Chief Economic Advisor and
Finance Secretary, Government of India, and now, UN Advisor
at Geneva) provided encouragement to the study. Grateful
acknowledgements are due to Dr. Vasant Gowarikar, Secretary,
DST, and Dr. R.K. Midha, Director (NRDMS), DST, for giving
SOMAC an opportunity to conduct such studies in NRDMS
Programme. Finally, thanks are due to the secretarial staff
of SOMAC team and to Messrs. Saumen Chattopadhyay and
Pradip Biswas for their assistance in the preparation of the
report.

A.GHOSAL
October,1990 Project-in-charge and
P.I.
NRDMS(SOMAC)PROJECT

* Mr. A.K.Bhattacharyya worked with the Central Small

Industries Organisation of the Govt.of India, for several
years, and he also worked as ILO Expert in UNDP - Special
Fund Project on Small Industries Development in Singapore, as
Senior Industrial Economist in UNIDO, Vienna and in ECAFE
(now ESCAP), Bangkok for Small and Large industries develop-
ment in several countries. His expertise is Industrial
Economics and Administration. He received his education,
training and orientation from the Residential Centre for
Management Studies of the Royal College of Science and
Technology, Glasgow, U.K.

(iii)
 CONTENTS

CHAPTER PAGES

1. INTRODUCTION 1-4

2. GENERAL PERSPECTIVE 5-19

3. RESOURCE BASE FOR SELECTED SMALL

INDUSTRIES 20-26
3.01 Human R e s o u r c e s 20-22
3.02 Water Resources 22
3.03 Mineral Resources 22-23
3.04 Livestock Resources 23
3.05 Forest Resources 23-24
3.06 Agricultural Resources 24-26
3.07 Horticulture 26
4. EXISTING STRUCTURF OF INDUSTRIES IN
SULTANPUR DISTRICT 27-29
4.01 L a r g e and medium i n d u s t r y 27
4.02 Ancillary industries 27
4.03 Small scale sector 27-29
4.04 Handloom sector 29
4.05 Khadi and village industry 29
4.06 Handicraft industry 29

5. PROBLEMS OF SMALL INDUSTRY DEVELOPMENT

IN SULTANPUR DISTRICT 3 0-32
5.01 Industrial Estates/Industrial
Parks 30
5.02 Infrastructure 30-31
5.03 Manpower 31
5.04 Raw Materials and Machinery 31
5.05 Finance 31-32
5.06 Entrepreneurial a v a i l a b i l i t y 32
5.07 Markets 32
5.08 I n d u s t r i a l Climate 32

(iv)
CHAPTER PAGES

6. DEMAND AND MARKET PROSPECTS FOR

SELECTED SMALL INDUSTRY PRODUCTS 3 3-38

7. CANDIDATE NEW INDUSTRIES 3 9-44

A. Agro-based Industries: Food Industry

1) Wheat Milling
2) Bread Manufacturing
3) Biscuit Making
4) Gattle/Poultry feed manufacturing
5) Manufacturing of Mustard Oil
in Pouches
6) Manufacturing of Corn Flakes
B. Chemical Industries(Market oriented)

7) Manufacturing of Plastic Buttons

8) Manufacturing of Nylon Zip Fasteners

C. Hosiery Industry (Market oriented)

9) Manufacturing of Cotton Vests knitted

D. Mechanical Engineering Industry

10) Manufacturing of Steel Trunk
11) Umbrella Manufacturing
12) Manufacturing of Umbrella Ribs
and Fittings
13) Manufacturing of Paper Pins

E. Electronic Industry (Market oriented)

14) Manufacturing of Transistor

Radios (Low cost)
15) Manufacturing of CRT Data
Display Monitor (Monochrome)

8. INDUCEMENTS AND INCENTIVES NECESSARY

FOR A BALANCED GROWTH OF SMALL INDUSTRIES
IN SULTANPUR DISTRICT 4 5-58

APPENDIXES
APPENDIX 1 LIST OF ENTREPRENEURS IDENTIFIED 4 9-50
APPENDIX 2 DISTRIBUTION OF LARGE AND MEDIUM
SCALE INDUSTRIES IN SULTANPUR DISTRICT 51-52
APPENDIX 2.01 to EXISTING SMALL INDUSTRIES IN DIFFERENT
2.22 BLOCKS OF SULTANPUR DISTRICT 53-80
(v)
 PAGES

PROJECT PROFILES 81-174

Agro-Based Industries (Food Industry)

S/l Profile for a Wheat Milling Factory 81-90

S/2 Profile for a Bread Manufacturing Plant 91-95
S/3 Profile for a Biscuit Manufacturing Unit 96-100
S/4 Profile for Cattlefeed/Poultry feed
Manufacturing Unit 101-105
S/5 Profile for a Mustard Oil Manufacturing
Unit 106-112
S/6 Profile for a Corn Flakes Manufacturing
Unit 113-119

Chemical Industries

S/7 Profile for a Plastic Button Manufacturing

Unit 120-125
S/8 Profile for a Nylon Zip Fastener 126-130

Hosiery Industry

S/9 Profile for a Cotton Vests knitted

Manufacturing Unit 131-135

Mechanical Engineering Industries

S/10 Profile for a Steel Trunk Manufacturing Unit 136-140

S/ll Profile for an Umbrella Manufacturing Unit 141-145
S/12 Profile for an Umbrella Ribs and fittings
Manufacturing Unit 146-152
S/13 Profile for a Paper Pins Manufacturing Unit 152-156
Electronics Industry

S/14 Profile for a Transistor Radio

(low Cost) Manufacturing Unit 157-164
S/15 p r o f i l e for a CRT Data Display
Monitors (Monochrome) Manufacturing
Unit 165-173

MAPS

SULTANPUR DISTRICT WITH NEIGHBOURS 174

BLOCK MAP OF SULTANPUR L7 5

(vi)
 CHAPTER-1

INTRODUCTION

1.1. Scope and Methodology of the Survey;

The central objective of this survey is to investigate

the industrial potentialities of district Sultanpur of U.P.
and to determine the lines of manufacturing most suitable
for expansion or introduction into the area. This survey has
been based on a study of the area's available raw materials
and human resources, internal demand outlook and external
market prospects, consumption pattern of various component
items and manufactured goods in and around the project area
and other related considerations. The investigation has, inter-
alia, taken into account:

(a) a study of the area's present and prospective demand

for manufactured goods demand in the area itself
and demand in the external markets accessible to it:

(b) an assessment of the area's present and prospective

resources for manufacturing - resources in the
area itself and resources obtainable by import
from neighbouring areas; and

(c) a study of a comprehensive list of manufacturing

industries for selecting those in which the
characteristics of industries best match the area's
demand and resouces.

1.2 Methodology of Survey:

Basic information relating to the characteristics of the

area and data in respect of available resources were collected
from various departments of the Government of the state. The
Economic Investigation Team contacted various official and
non-official agencies and collected all relevant information
on the economy of the area. Market prospects for several
manufactured it-ms were studied carefully iwht reference to
the consumption pattern prevailing in the area as well as in
the industrial conurbation adjacent to the area under study.
Requirements of established contractor's firms, private
enterprises and of individual consumers or households and
various departments of the State Government, educational
institutions, etc., were taken into consideration
 1.2

Places of industrial and commercial significance

as well as the industrial centre established were visited
by the Investigation Team. Established dealers in and
around the project area were also contacted. Dissussions
were held with knowledgeable persons well acquainted with
the economy of the area. Meetings were held with the
DM of the district, a number of other important government
officials and with the existing and prospective entrepre-
neur-industrialists. Published report and literature on the
project area were also studied.

1.3 Basic Postulates:

The prime objective of this survey is to suggest

appropriate lines of manufacturing in the small scale sector
for providing employment opportunities to the people (who
are other wise employable) within a reasonably short period
of time and raise their purchasing power and level of
living. Additional production of goods and services would
also increase economic welfare of the State.

1 4 The revised definition of a Small Industry:

The new industrial policy was announced by the

National Front Government on 31st May,1990. One of the
welcome features of the policy is the easing of bureacratic
control and the liberalisation of investment in backward areas

The new policy, in view of general price hike, raises

the investment ceiling on plant and machinery constituting
fixed capital for small scale industries from Rs.35 lakh to
Rs.60 lakh. For ancillary units the ceiling is raised to
Rs.75 lakh from Rs.45 lakh. The raising of investment
limit for small scale industries and ancillary units is
likely to act as a stimulus to industrial growth.

The small scale units are labour intensive and thus

they have high employment potential as compared to large
industries.

The Investigation Team has, therefore, been more

concerned with the actual economic resources rather than
with the potential economic resources in the project area.
From the point of view of a small industrialist, he is
more interested in getting ready raw materials for running
his factory.

The second important consideration before the

Investigation Team is not "what one can manufacture but
what one can sell". The articles manufactured must be
 1.3

disposed of quickly and should not pile up in anxious

expectation of some future buyers. It means that the
items manufactured should have ready market prospects
so as to assist the small units to grow up speedily and
expand.

Considering the economy of the area and its

resource-configuration, the Investigation Team takes the
view that in the short period, steps should be taken to
expand or set up only those lines of manufacturing which
are predominantly market-oriented or ancillary-type. The
market prospects should be scanned first before plunging >.i
into production of any particular line of manufacturing.

It may be stated without any iota of doubt that

small-scale industries alone cannot provide gainful emplo-
yment to all the employable persons of the area. They
are not the panacea to all the economic ills of the people
in the project area. An integrated development programme
spanning both agriculture and industry is to be worked out
to stop the serious and growing imbalance between the supply
of labour and the demand for it in the area under consi-
deration .

A concerted planning for industrial development

of the area should also take into account planning for
the development of large, medium, small-scale industries
and handicrafts, thereby increasing opportunities of gainful
employment to the people in the the area.

There is possibly a spacious field for the

development of certain large-scale industries, pioneering
in character(but not "pioneer industries") in the project
area, which in turn will foster the development of small
and ancillary industries. In not too distant a future,
a power project will come up in the area. Similarly, other
ambitious projects, might have also development potentialities,

The setting up of a large-scale plant is

always a highly costly venture. It requires enormous time
and enough brain storming to prepare a large -scale project
report and huge outlay and resources to implement such a
scheme. If on the other hand, it becomes accidentally a
misinvestment, then the cost of such a misinvestment is
very heavy. Moreover, setting up of a large-scale unit
is a long-term planning project, and a separate organisation
is necessary to achieve such an objective.

In the short run, the expansion of the existing

small industries and the introduction of new lines of
 1.4

manufacturing should be thought out. The selection of

small industries which could be advantageously located
in the area under study is based on the following five criteria.
First, there are resources-based industries which could
be set up to utilise economically the locally available
resources, including some of the end-products and by-
products of other plants in and around the area. These
are the raw material-oriented industries. The second
category of industries could be a group of market-oriented
industries to meet the growing requirements for consumer
goods or services.

The third category of industries could be group

of labour oriented industries to provide consumer goods
and services.

The fourth category of industries might be ancillary

industries to meet the requirements of other large industrial
plans situated in the neighbouring areas.

Lastly, the fifth category of small industries

might be termed as"foot loose industries" which would cater
to national demand.

Normally, the promotion and development of small

industries would be left to the initiative and enterprise
of private individuals. A private industrialist could only
be attracted to the project area to set up an enterprise
if certain inducements and incentives are offered to him
by the Government. These incentives might be either
built in factory accommodation on economic rent in the indu-
strial estate, or a plot of land at a suitable location and
finances and credit facilities to build the factory on it
in accordance with an approved pattern, or economic incentives
or credit and money incentives or some form of fiscal or
tariff incentives, or a combination of several of them to
accelerate the pace of industrial progress in the area.

Thinking all the pros and cons the Investigation

Team recommends that the state or Central Governemnt by
itself or in collaboration with other agencies or by private
individuals may set up large-scale industrial enterprises or
the State Government may invite private sector or NRI
to set up prospective large-scale projects in the project
area with internal and external market prospects to
foster industrial growth and .initiate private individuals
to come forward and to take the plunge either to expand
their existing small-scale units or to start new lines of
small-scale manufacturing.
 2 .1

CHAPTER 2

GENERAL PERSPECTIVE

2.01 Location and the Extent of the Area;

Sultanpur district is an underdeveloped

region having all the common characteristics of an underde-
veloped economy. Poor infrastructural facilities, parti-
cularly with regard to the setting up of industries is
the most prominent feature of underdevelpment.

Sultanpur district ranks 22nd in population

and 36th in area amongst the 56 districts of Uttar Pradesh
State. Geographically the district lies between 81°32'
and 82°41' East longitude and 25°59' and 26°40' North
latitude. The district which is a part of the Faizabad
division is bounded by the Faizabad district in the North
and Pratapgarh district in the South. On the East and
west it is bounded by the Azamgarh and Raebareli district
respectively. The Barabanki, and Jaunpur district lie
on the North-West and South-East of Sultanpur district.

The area of Sultanpur district is 4436 sq.

km.which is about 1.51% of the total area of the state
of Uttar Pradesh.

Administrative Set up

Tehsils (5) Blocks(22)

(a) Sultanpur Dubepur,Bhadiyan,

Kurwar,Jaisinghpur,
Kurebhar,Dhanpatganj(6)

(b) Amethi Amethi, Bhadar,Bhetua

Sangrampur (4)

(c) Gauriganj Gauriganj, Shahgarh,

Jamo (3)

(d) Musafirkhana Musafirkhana,

Jagdishpur,Baldirai,
Shukul Bazar (4)

(e) Kadipur Kadipur,Lambhua

Akhandnagar,Pratap
Pur Kamicha,Dostpur (5)

2.02 Climate and Rainfall

Sultanpur has ..got a semi-arid climate
characterised by hot summer and cold winter. Temperature
- The mean maximum temperatures recorded in the month
of May and June are 41.1°c and 38.9°c respectively.
 2.2

The mean minimum temperatures recorded in the month of

December and January are 7.7° c and 7.9°c respectively.

Relative Humidity

The atmosphere is dry during April and May. The

maximum mean relative humidity in the morning in these
months are 33 and 37 % respectively. The minimum mean
relative humidity during these months are 18% and 20%
respectively.

Wind Speed

The windspeed in this region is quite moderate,

the mean being 12 km per hour approximately in the month
of June.

Dust Storm

The occurrence of dust-storm in quite common

during the pre-monsoon season i.e. from April to June and
on an average for 1 to 2 days in a month.

Rainfall

Since Sultanpur district is in the Eastern U.P.

it would be pertinent to look at the rainfall position
of East U.P. recorded during 1987-90(June to September).
The actual and normal rainfall in East U.P. during the
said period is given below. ±19% variation in the actual
level of rainfall from the normal would be considered
as normal. It is evident from the table below that East
U.P. received inadequate amount of rainfall in 1987.

Table 2 .01
Rainfall Position (in mm)
[ South West Monsoon Season (June to September)]
East U.P.
Actual Normal % Departure

1987 659 913 (-)28

1988 889 906 (-) 2
1989 872 901 (-) 3
1990 961 879 :•+ 9
(June to 26th
Sept.1990) (-19% to +19% is normal)

Among the four raingauge stations of the

Sultanpur district, Amethi receives the least annual
normal rainfall and Kadipur receives the highest.
 2.3

2.03 Population

The total population of Sultanpur district

according to 1981 census was around 20.43 lakhs. The
decennial rate of growth of population in the last decade
was 24.34% which exhibits an annual rate of growth of the
order of 2%. Considering this rate the district popul-
ation is expected to be around 24 lakhs by January,1990.
The distribution of male and female population as per
1981 census was 50.7 and 49.3% respectively. Amongst
the four tehsils of Sultanpur district, the most popul-
ated one is Sultanpur (33.5%), followed by Kadipur(25.8%)
Musafirkhana(22.6%), and Amethi(19.1%).

A blockwise study of the district shows

that, besides Baldirai, Sangrampur, Amethi, Pratappur-
Kamaicha and Akhandnagar, all have higher Male-Female
ratio.(See Table 2.02). (See Page 2.4)

Table 2.03 reveals the tehsil -wise

distribution of workers in Sultanpur district as per 1981
Census. The workers constituted 29% of the total popu-
lation of the district, the remaining 71% being non-
workers. It may be seen from the table 2.03 that culti-
vators and agricultural labourer - are the two most
important categories of the working force and account
for 63.7% and 23.1% respectively of the total workers
in the ditrict. Thus about 87% of the total working
population is engaged in agricultural and allied activi-
ties. The people engaged in other activities like house-
hold industry, manufacturing and processing were only
2.5%. The people engaged in activities like constru-
ction, trade and commerce, transport and communication
and other categories accounted for about 10% of the
total working force in the district. The total working
population in the different tehsils : of the district
ranged between 26%(Kadipur) to 32% (Musafirkhana).

Table 2.03
D i s t r i b u t i o n of Workforce ( t e h s i l wise) 1981

Tehsil Cultiv- A g r i c u l - Mfgur. O t h e r Marg- T o t a l

ators t u r a l wor sector work- i n a l workers
kers ers workers

Musafirkhana 102712 32853 3720 8519 5613 147804

Amethi 77678 27013 1823 7980 5442 114494
Kadipur 92432 30432 3680 12283 8595 138827
Sultanpur 103338 45994 7303 32545 6985 189180

Figures in the parenthesis depict the % of workforce

to total workforce.
 2.4

Table - 2 . 0 2

BLOCKWISE POPULATION OF SULTANPUR (19 81 CENSUS , IN '000)

S.No. Tehsil Blocks Total Male Fema le Sex-Ratio

Popula-
tion

1. Sultanpur Jaisinghpur 107.34 54. 73 52. 62 961. 45

Bhadiyan 96.46 48. 51 47. 95 988. 46
Dubepur 112.89 58. 18 54. 71 940. 36
Kurebhar 108.28 54. 81 53. 47 975. 55
Dhanpatganj 97.75 49. 68 48.07 967. 59

2. Amethi Amethi 67.23 33. 46 33. 77 1009. 26

Bhadar 67.26 33. 68 33. 58 997. 03
Bhetua 54.38 27. 36 27. 02 987. 57
Sangrampur 48.11 23. 63 24. 49 1036. 39

3. Gauriganj Gauriganj 81.9 41. 54 40. 35 971. 35

Shahgarh 44.65 22. 71 21. 95 966. 53
Jamo 93.62 48. 16 45. 46 943. 93

4. Musafirkhana Musafirkhana 77.91 39. 75 38. 16 960. 00

Jagdishpur 105.33 54. 42 50. 91 935. 50
Baldirai 99.89 50. 54 54. 35 1075. 38
Skukul Bazar 84.92 43. 47 41. 46 953. 76

5. Kadipur Kadipur 128.23 64. 84 63. 39 977. 64

Lambhua 99.01 49. 85 49. 16 986. 16
Pratappur- 71.71 35. 83 35. 89 1001. 67
Kamicha
Dostpur 107. 8 54. 76 53.,03 968. 40
Akhand 109.18 54..04 55..14 1020. 35
Nagar
 2.5

Table 2.04 provides rural-urban population

distribution of the district on tehsil level. It may be
observed from the table that 96.7% of the total population
live in the villages. Musafirkhana tehsil constitutes
100% rural population. Urbanisation, being an index of
growth, reflects the extent of backwardness in the
socio-economic condition of the district. Sultanpur
district is pre-dominantly an agricultural economy and
the accent on" development of industries either in large
or small scale is of very recent origin.

Table 2.04

Tehsilwise Rural and Urban Population in Sultanpur District

1981 census

SI. Tehsil Total Popn Rural Popn. Urban Popn.

No. Total % Total % Total %

1. Musafirkhana 461677 22.6 461677 100.0 -

2. Amethi 370662 18.1 363530 98.1 7132 1.9
3. Sultanpur 683058 33.5 634276 92.9 48782 7.1
4. Kadipur 527381 25.8 515920 97.8 11461 2.2

Total 2042778 100.0 1975403 96.7 67375 3.3

2.04 Education and Training

The literacy rate of Sultanpur district

is about 22.44% as against 27.16% of the state. The
distribution of the literates among the male and female
,is respectively 35.14% and 9.36% which is lower than the
corresponding-state average of 35.76% and 14.04%(1981) .
Educational Institution

The number of educational institutions in

Sultanpur district during 1987-88 is given in the table
below:
Table 2.05
EDUCATIONAL INSTITUTIONS IN SULTANPUR DISTRICT
SI.No. Items Rural Urban Total

1. Junior Basic school 1561 39 1600

2. Senior Basic school 2 87 21 308
3. High school/Inter-
mediate College 79 3 82
4. Degree College 3 8 11
5. I.T.I. (Ind.Training 2 2
Institute)
 2.6

The highest number of educational insti-

tutions are in Sultanpur tehsil (610) followed by Kadipur
(542), Musafirkhana(398) and Amethi (388). The total
number of degree colleges in the district is 8, out of
which 5 are in urban areas and 3 are in rural areas with
one each in Gauriganj, Kadipur and Lambhua blocks.Besides
these, there is one engineering college, one polytechnic
two Industrial Training Institutes(ITI) and 3 Teachers
Training Institutes in the district. It is understood
that sufficient number of candidates are not forthcoming
for joining trade courses.

2.05 Health and Medical Facilities

Health and medical services form an impor-

tant part in the integrated development of any region. In
this respect Sultanpur district remains far behind as it
has only 4.2 medical institutions of some kind per lakh
of population as compared to 7.6 in the neighbouring
district of Rae Bareli and 7.8 in the state of Uttar
Pradesh. Similarly, the number of medical institutions
per 100 sq.km of geographical area in the district was
only 1.92 as against 3.10 in Rae Bareli district and
2.94 in U.P. state.

Health

Some of the common diseases in the

district are diphtheria, tetanus, tuberculosis, infectious
-hepatitis, encaphalitis, dysentery of all forms.

Medical Facilities

As per the 1987-88 statistics Sultanpur

district has 85 hospitals and dispensaries of which
31 were allopathic, 2 5 ayurvedic, 6 unani and 2 3 homeo-
pathic. Besides these, there were 22 Primary Health
Centres, 41 family and Maternity Child Care Centres and
279 subscentres. it may be further noted that Kadipur
tehsil has 21 medical institutions of some kind which
was the highest, folowed by Amethi(18), Sultanpur(17)
and Musafirkhana(15). With regard to the blockwise
distribution of medical facilities, the highest was
in Kadipur block(9) followed by Baldirai and Jaisinghpur
block (6 each), while Sangrampur, Shahgarh and Kurebhar
blocks have the lowest with number one each.

There were 111 doctors and 691 Param-

edical staffs in Sultanpur district. The total number
of hospital beds in Sultanpur district was about 766.
Musafirkhana tehsil has got the maximum number of beds
(70) in different medical institutions, followed by
Sultanpur (56), Kadipur (54) and Amethi(46).

10
 2.7

2.06 Industrial Climate and Institutional Setting for

Industrial Expansion:

Industrial Infrastructure
Industrial Area:

The drive towards industrialisation of

Sultanpur district began almost a decade back, when
the state government took up promotion of insdustrial
areas and industrial estates on a Crash basis. U.P.
State Industrial Development Corporation tool initiatires
to develop accessories of industrial areas at different
locations in the district. The details are given
in the table 2.06. (See Page 2.8)

2.07 Financial Facilities

The following banking institutions have

opened up their branches to meet the even growing finan-
cial requirements of entrepreneurs and traders in the
district. Provision of financial resources is a prere-
quisite to the setting up of industries.

Name of the Bank Branches

bank of Baroda(Lead Bank) 19
District Cooperative Bank 25
Kshetriya Gramin Bank 93
State Bank of India 9
Land Development Bank 1
Central Bank of India 1
Punjab National Bank 1
Banaras State Bank Ltd 4
Allahabad Bank 4
Canara Bank 4
Oriental Bank of Commerce 1
Bank of India 1

Total:166

The developmental intermediaries of the

district area:
1. Uttar Pradesh Financial Corporation (UPFC)

UPFC provides financial assistance in the

form of term locan upto Rs.15.00 lakhs to individuals and
Rs.30.00 lakhs to cooperative or public limited companies
UPFC provides concessional finance to the entrepreneurs
in the backward district not only for managing but also
in the matter of interest rate and repayment period.
Special facilities are also provided to the technical
entrepreneurs.
11
 2.9

2. Pradeshiya Industrial Investment Corporation of

Uttar Pradesh (PICUP):

The following are the services rendered and

schemes operated by the PICUP:

a) Project/Product identification
b) Technical Consultancy a.id advisory services
c) Seventy five percent subsidy on feasibility study
d) Financial assistance, term loans and undertaking of
shares.
e) Central Capital Subsidy Scheme
f) Sales tax loan scheme (incentive) providing
interest and long-term loans without security.
g) IDBI Seed Capital Scheme
h) IDBI Refinance Scheme
i) Non-resident Indian Comprehensive Package Assistance
Scheme
j) Joint Sector Project
k) Octroi exemption
PICUP provides term loan for projects upto
two crores and also acts as feed institution for total
assistance such term loans are provided to large and
medium industries.

3. Uttar Pradesh State Industrial Development Corpor-

ation (UPSIDC)

a) UPSIDC is a leading agency in the state which pro-

vides land together with necessary basic facilities.
The corporation develops industrial areas through
the provision of basic infrastructural facilities
like roads, drains and power distribution lines.

b) UPSIDC provides equity participation and under writing

facilities for financing medium sector projects. It
also provides special consultancy services and brid-
ging loan to needy entrepreneurs.

4. Uttar Pradesh Samll Industries Corporation(UPSIC)

UPSIC arranges for the raw material requirements of

small scale industries. It also renders marketing
assistance and hire purchase facilities for the procure-
ment of equipments.
5. Uttar Pradesh Handloom Corporation (UPHC)

UPHC assists the handloom sector by providing nece-

ssary inputs as also marketing of the end products.

6. Uttar Pradesh State Textile Corporation(UPSTC)

UPSTC has set up a series of spinning mills for

meeting the requirements of cotton yars of the vital

13
 2.10

handloom sector.

7. Uttar Pradesh Electronics Corporation(UPELC)

UPELC devotes itself to development of electronics

industries with both software and hardware. It has set
up a number of projects with the assistance from the
joint sector.

8. Uttar Pradesh Export Corporation(UPEC)

UPEC assists the entrepreneurs in exporting their

products.

9. Uttar Pradesh Brassware Corporation (UPSBC)

UPSBC is responsible for the development of brass

ware industries in the district. The corporation gives
assistance right from the level of development to the
marketing of the product.

10. Uttar Pradesh State Leather Development and

Marketing Corporation (UPSLDC)
UPSLDC is responsible for the development of
leather industries. It gives assistance right from the
level of development to the marketing of the product.

11. National Small Industries Corporation(NSIC)

This organisation provides facilities to the entre-

preneurs by supplying machinery on hire purchases basis.
The corporation also makes arrangements for importing
the machinery.

12. Small Industries Service Institute at Kanpur

It renders economic and technical guidence and

assistance for the promotion and development of all
industries in the small scale sector.

Central Investment Subsidy

New industries (set up after 1.4.83) in the

district are provided subsidy @ 25% of fixed investment,
subject to a maximum of Rs.25.00 lakhs. The existing
units going for substantial expansion (i.e. more than
25% fixed assets) are entitled for subsidy if the
expansion took place after 1.4.83. As per govt.of India,
Ministry of Industry, Department of Industrial Develop-
ment Notification No.15 dated 22 Sept.1988 extension for

14
 2.11

registration under Central Investment subsidy scheme has

not been received.

Exemption from Sales Tax

The products of industrial units, set up on

or after 1st October,1982, are exempted from Sales Tax
for a period of 7 years.

Financial Assistance

Concessional Financial Assistance from PICUP

and UPFC (U.P.Financial Corporation) at the interest
rate of 12.5% is being provided to the industrial units
at a reduced margin ranging from 12.5% to 15% of the
investment.

Power Concessions

New Industrial units are exempted from power

cuts for 5 years and no minimum consumption guarantee
is payable in the first year from the date of taking
connection. The new units are also given development
rebate of 10% for a period of 3 years from the date of
commencement of supply.

Subsidy Provided for Consultancy Services

The cost incurred by the entrepreneur for

the preparation of feasibility reports on medium sector
projects is subsidised to the extent of 75% provided
that the report is prepared by the consultants approved
by PICUP. Similarly, Industrial Development Bank of
India has a number of scheme for the benefits of new
entrepreneurs as also for the modernisation and expan-
sion of existing projects. These schemes are operated
through UPICO.

Margin Money Loan Assistance:

Margin Money loan upto 50% of the margin

money, required to be invested in the project, subject
to a maximum of Rs.3.0 lakhs, is available in special
cases to small scale units to meet the equity gap.

Subsidy for Prestige Units

In addition to Central Investment subsidy,
the state Govt. provides a subsidy upto Rs.15 lakhs
to such units which are set up the first time in "ZERO
INDUSTRY TEHSILS" and have an investment of more than
Rs.25 crores provided minimum of 10 ancillary industries
are promoted.

15
 2.12

Exemption from Octroi Duty

The Industrial units are exempted from

payment of Octroi duty on machines and building
material for a period of 5 years.

Subsidy Granted to Installation of Diesel Generating Sets

The state Govt.provides subsidy @ Rs.1000/-

per KVA for small scale units @ Rs.500/- per KVA for
large and medium scale units towards installation of
diesel generating sets.

Khadi & Village Industries

Concessional financial assistance and

marketing assistance are provided to industrial co-
operatives and rural industries by the Khadi & Village
Industries Board.

Assistance for Weavers Handloom

The state Govt. through U.P.State Handloom

Corporation provides assistance to the weavers in the
form of supply of yarn marketing of handloom cloth and
modernisation of looms belonging to the weavers of
Sultanpur district.

With all the paraphernalia provided by the

State and Central Govt. for the development of the house-
hold, small and large sector industries, one can not
escape from the sad conclusion that industrialisation
in Sultanpur district has stagnated in a lamentably
low level. The thrust given to Jagdishpur Block is an
exception to the aforementioned state,ent. It also
proves with appropriate social capital investment,
incentives and inducements small scale industry may
boom in erstwhile deserted areas of Sultanpur district.

2.08 Railways

Sultanpur and its surrounding areas are

connected by two railways - Northern and North Eastern.
Between Lucknow and Varanasi there are three railway
arteries - one passing through Faizabad, one passing
through Jagdishpur and Sultanpur and the third passing
through Rai-Bareli and Amethi. The Sultanpur district
has got 2 3 railway stations and the length of broad
gauge line in the district is about 186 kms. This
district has also got indirect connection with, Delhi
Howrah and Jammu; For the transportation of goods,
empty wagons may be available from the Sultanpur

16
 2.13

railway station itself and Sindurwa in Lucknow

Division.

Roads

However, road transport also plays a crucial

role in transporting raw materials and products in the
entire district and its surroundings. There are two
principal highways - one connecting Sultanpur town with
Lucknow, Jagdishpur and extending all the way to Varanasi,
and the other connecting Sultanpur town with Lucknow.
Rae Bareli, gauriganj and Amethi. All important market
centres and tehsil headquarters in the district are well
connected by roads. All the five tehsils alongwith the
Sultanpur district itself are directly connected by
metalled roads with the important cities of the state
like Allahabad, Lucknow, Kanpur, Azamgarh, Ballia,
Fatehpur, Farrukhabad, Jaunpur, Faizabad Varanasi Rae
Bareli etc. Even the Varanasi state highway passess
through the district.

The total length of road in km in the district

is about 1275, out of which P.W.D. road is about 1176
km. In addition to this, Zila Parishad maintains about
417 km of Pakka and 486 km of Kaccha road. Government
as well as private buses ply almost on all the roads
connecting major head-centres and towns. There are
about 156 bus station/stops in the district.

2.09 Electricity and Power

The district is divided into two Electricity

operation division, Electricity Distribution Division
and Electricity Transmission with the headquarter at
Sultanpur. With regard to the availability of power
there are presently twenty sub-power stations of 33/11
KV and one each of 132 KV and 400 KV, obtaining power
supply from Obra and Rihand Grid. An independent 130
Kv power station (to meet the needs of Tikaria and
Trisundi Industrial Areas) is also under active cons-
ideration of the government. Electric power supply is
distributed through the Grid System from Obra and
Rihand.

As per survey, of nearly 72% of the village

are electrified in the sense that electricity is
available at least upto the boundary of the village
although only about 27% of the villages are actually
electrified with low tension mains.

Agriculture sector is the biggest consumer

of electricity and industry is the second major cons-
umer of electric power.
Table 2.07 reveals the blockwise distribution
of power sub-stations in Sultanpur district

17
 2.14

Table - 2.07
Blockwise Distribution of 33/132 KVA Sub-stations Alongwith
Their Capacities (1985).

Serial Block Name of Substation Capacity(MVA)

No.

1. Kurebhar Kurebhar 3.0 MVA

2. Jaisinghpur Bhatmai 3.0 MVA

3. Jaisinghpur Deara 3.0 MVA

4. Dostpur Gangapur 5.0 MVA

5. Kadipur Tawakalpur 3.0 MVA

6. Musafirkhana Musafirkhana 3.0 MVA

7. Baldirai Baldirai 3.0 MVA

8. Jamo Jamon 1.5 MVA

9. Pratappur Kamicha Chanda 3.0 MVA

10. Bhadar Ramganj 1.5 MVA

11. Amethi HAL Korwa 3.0 MVA

12. Amethi Amethi 3.0 MVA

13. Gauriganj Gauriganj 1.5 MVA

14. Shagarh Paniyar 1.5 MVA

15. Jagdishpur Jagdishpur 3.0 MVA

16. Jagdishpur Thauni (Mau) 1.5 MVA

17. Shukul Bazar Mahona 1.5 MVA

18. Lambhua Lambhua 3.0 MVA

19. Dubepur Bandhukala 3.0 MVA

20. Dubepur Dariapur 2.5 MVA

18
 2.15

The U.P.administration has invited appli-

cations from interested industrialists and NRI for the
installation of a power house (gas-based) from the
private sector at Jagdishpur in Sultanpur district.

2.10 Telecommunications and Post Offices

This ditrict is well endowed with post

offices and telecommunication link has to be improved
upon with the expansion of industries in different
parts of the district. There are 437 post
which includes one Head Post office, Sub-Post Offices,
Branch Offices and Additional Sub-post offices. In
addition there are 19 telegraph offices including
11 in rural areas and 8 in urban areas. There are about
54 public call offices, out of which 25 are in rural
areas and 25 in urban areas.

19
 3.1

CHAPTER 3

RESOURCE_BASE_FOR_SELECTED_SMALL_INDUSTRIES

3.01 Human Resources :

The human resources of Sultanpur district is

considerable in terms of quantity but it is very poor in terms
of its quality. For any developmental purpose both in agri-
culture and industry, skilled and trained labour plays a very
important role. Most of the available workers who are to be
employed in factories have not got any trade qualifications/
training. And only very few people are having technical
degrees. Detail educational level of the population and
workers are given in the Table 3.01 (A & B ) .

Among the total population only 49.3% males and

7.88% females are engaged in work. (See Table 3.02 (A&B).
So both nonworking males and females are creating a tremendous
pressure on the working population being economically
dependent on them.

Another important feature of the human resources

is that nearly 40% of the population lying below the age
of 15 years, who are waiting for joining the labour force
in the near future. If sufficient jobs are not created by
developing and expanding agriculture and industry for these
newly emerging hands, it will create more pressure on the
existing job markets resulting in more unemployment,
underemployment and disguised employment.

The working population are over dependent on

agriculture. More than 85% working males and females are
engaged in agriculture (cultivators and agricultural labourers)
4.74% male and 5.49% females of the total workers are engaged
in manufacturing. It clearly shows industrial sectors should
be developed for absorbing more workers and bringing dynamism
within the economy. Detail occupation of the workers are
given in the Table 3.02.

There has not been any systematic development of

a traditional artisan class in the Sultanpur district. From
1981 census, it is gathered that artisans and craftsmen
constitute 4.74% of working males and 5.49% of working females
of the present workforce. There is an urgent need to build
up the skilled artisan class and skilled operators on the
shopfloor. Manpower planning and development studies should

20
 3.2

Table-3.01

Total Population And Workers With Their Different Educational

Level By Sex, (19 81)

A. Total Population/ Illiterate Literate, Middle

Total Workers Primary & Below
M F M .F M F M F
General 1036561 1006217 672326 911983 236789 77661 57914 9095
Population
(%) - - 64.86 90.63 22.84 7.72 5.59 0.90

Working 510985 79320 337063 • 76328 96195 1636 34963 347

Population
65.96 96.22 18.83 2.06 6.84 0.44

B. Higher Secondary Non-technical Technical diplo- Graduate and

and Below Diploma ma Equal to above
degree
M F M F M F M F

General 55306 5972 29 5 125 8 14071 1492

Population
5.34 0.59 0.01 1.36 0.15
Working 33390 677 24 5 65 9263 326
Population
6.53 0.85 0.01 1.81 0.41

Table - 3.02
Working P o p u l a t i o n By I n d u s t r i a l Category & Sex (1981)

A. Cultivators Agricultural Livestock Mining & Manufacturing

Labourers fishing,hun- quarrying processing,
ting etc. Servicing etc.
M M M M M
Workers 344601 31559 95920 40372 1065 69 25 - 24214 4358
(%) 67.43 39.79 18.77 50.90 0.21 0.09 4.74 5.49

B. Construction Trade & Transport & Other Total

Comrnerce Communication Services Workers
M M F M F M F M F

Workers 2166 166 13406 479 5570 50 24018 2267 510985 79320
0.42 0.20 2.62 0.60 1.09 0.06 4.70 2.86 49.30 7.88

21
 3.3

be undertaken to project the future needs for professional

and paraprofessional people for senior management, miffle
management and junior levels in industires. Artisans
endowed with special skills are available at some places for
the running of family based traditional industries. There
are few families who specialize in manufacturing brass, copper
and German silver utensils at the village, Badua Kallan, very
near to Sultanpur town. There are thousand of weavers who
specialize mainly in Khadi products in the blocks-Dostpur,
Akhand nagar and Kadipur. About a thousand of artisans
manufacturing handmade leather footwear are also available
at a place adjacent to Jagdishpur.

The availability of capital resources is, in itself,

evidently of limited value if the manpower for the proper
organisation and utilization of these resources is not
available in corresponding proportion. To make a realistic
exposition of appraisal of the situation, any forecast of the
manpower needs must take into account the impact of the likely
expansion programmes in agriculture, leading to the develop-
ment of agro-based industries, promotion and development of
the large-scale and small enterprises, expansion of the
private sector in industrial development and flexibility in
the industrial policy of the government.

3.02 Water Resources :

As a whole apart from the ground water supply, the

entire Sultanpur district has excellent water resources from
surface source also. The main river with perennial supply
of water is Gomti, while the river Sai also provides water
in the South-West part of the district. The Indira Canal is
another rich source of water supply both for irrigation and i
cultivation.

3.03 Mineral Resources :

No mineral based industry in the Sultanpur district

could be set up simply because of the non-availability of
most of the important minerals which could be commercially
exploited. Very few worth mentioning minerals are available
in this district. There is a scope for setting up Kankar-lime
industry which is both used up locally for manufacturing
Kankar lime on cottage basis and sent outside.

With regard to the availability of economic earth

resources, very few are available, like Brick clay, meseary sand
Reh and ground water. Brick clay resources are inexhaustible.
Reh could be found at many places and a few may be viable for
cottage industry. Ground water potentials are promising for
the augmentation of industrial potential, industrial use and

22
 3.4

supply of safe drinking water in the different kinds of

villages.

With respect to geo-environmental problems arising

out of water ponding, floods, salt infestation, bad land,
Which may be identified to exploit it land remedial measures
have also been suggested. It has been found that shallowing
of ground water has worsened the conditions of water ponding
and salt infestation. Switching over to irrigation from ground
water has been advised. This situation may aggravate problems
of securing water from deep tube well. Therefore, constru-
ction of industrial estate or selection of industrial plots
has to be made at the sites where the aforementioned water
problem does not exist.

3.04 Livestock Resources :

It will be pertinent to discuss livestock population

of the district from the point of view of setting up of small
scale industries. According to the 1982 livestock census
there were over 11.3 lakhs of domestic animals and over 1.16
lakhs poultry fowls and ducks in the district. The total
cattle population of the district was about 6.2 lakhs, out of
which buffaloes and cows account for approximately 2 lakhs.

There are 35 veterinary hospitals, 75 cattle develop-

ment centres, 39 artificial insemination centres, one pig
unit and one pigery development centre in the district accord-
ing to the Sankhikiya Patrika of 1986.

One Dugda Utpadan Sahkari Sangh is in operation which

covers 11 out of 22 blocks. Much emphasis, should be given |
on this programme, so that Animal Husbandary based industry
may develop in this district. There was a decrease of about
4.5% in livestock population in 1982 over 1977 of the total
cattle population of which about 5.3 lakhs were desi-cattle
and only 0.86 lakh was cross bred.

In view of the above data on livestock population,

there is an adequate demand for poultry feed as well as cattle
feed which would warrant setting up of a small industrial
unit.

3.05 Forest Resources :

Forest is a natural resource which not only plays

a crucial role in maintaining the ecological balance but
also in providing raw materials for the industry, wood and
fuel for the people and grazing land and fodder to the animals.

23
 3.5

While the area under forest in U.P. is over 14.1% of

TGA; the total forest area under the district is 2497 hectares
(reserved forests 1277 ha and unclassified forest 1220 ha)
which accounts for 0.6% of the geographical area of the district.
The production of timber and fuel in the district in 19 81/82
was 26 and 258 cum respectively. Total area under social
forestry was as follows :

1980 1981 1982 1983 1984

336 659 802 978 782

Among the tehsils, Musafirkhana has the maximum forest

area followed by Sultanpur, Kadipur and Amethi, General
grasses, Mahua, Ucalyptus, Shisam, Arjun, Fibre wood are the
major forest products. From the industrial point of view
contribution of the forest products is very little in the
district.

3.06 Agricultural Resources :

The discussion of agricultural resources in Sultanpur

district should be made pertinent from the perspective of
setting up small industries. Land suitable for cultivation
is about 75% of the total area of the district. Due to
scarcity of water major portion of the land remain fallow.
Net area under crops vary from year to year.

Rice and wheat are the major crops grown in Sultanpur

district, occupying over 62% of the gross cropped area.
Maize, Barley, Jawar, Sugarcane and potato are grown to a
limited extent. Pulses are grown substantially.

Since agricultural production has got some bearing

on the establishment of small scale agro-processing units,
it would be relevant to look at the recent position of the
principal crops in the district and its neighbourhood.

The production of rice and the area under cultivation

of the agricultural year 1987/88 and 1988/89 of U.P. and
Sultanpur district are shown below. There has been a massive
increase in rice production mainly because of the improvement
in productivity, because area under cultivation has also
increased.
24
 3.6

Crop State/ Area in hectare Production in

District tonnes

Rice 1987/88 1988/89 1987/88 1988/89

U.P. 4781955 5568541 6475022 9624477

Sultanpur 147543 166846 179949 278967

The area under wheat cultivation is more than any other

agricultural product in the district. The production of wheat
is important because on the basis of it a wheat milling unit
may be set up. For wheat the area under cultivation and the
production figure are given below ;

Crop State/ Area in hectare Production in

District tonnes

Wheat 1987/88 1988/89 1987/88 1988/89

U.P. 8484482 8750711 16789043 19691408

Sultanpur 131575 137917 230513 287242

The production of edible oilseeds, particularly mustard

and rapeseeds is relevant since a small unit for manufacturing
of edible oil may be established. The area under cultivation
and the production figure of U.P. and Sultanpur are given
below.

Edible oilseeds State/ Area in hectare Production in

District tonnes

Mustard and 1987/88 1988/89 1987/88 1988/89

Rapeseeds
U.P. 533428 596879 356252 520323

Sultanpur 1087 1173 531 666

A small unit for manufacturing corn flakes may be

set up since maize is grown in Kadipur block and in the
adjoining district, Jaunpur. Though maize production has
fallen over the period 1987/88 - 1988/89 in Sultanpur but the
production has increased substantially in Jaunpur district.

25
 3.7

State/District Area in hectare Production in

tonnes

Maize 1987/88 1988/89 1987/88 1988/89

U.P. 1141600 1187793 999200 1225656

Sultanpur 5999 6102 7763 6633

*Jaunpur 54493 53555 66536 92650

*Jaunpur is an adjoining district of Sultanpur where maize is

grown extensively.

Though the production and productivity of the major

crops have increased over the years, but still, the present
yield of most of the crops is below the state average as well
as the all India average.

3.07 Horticulture :

A few words may be said about the important horticultural

products which can pave the way for establishing small industry.
If ascertained viable after proper feasibility studies.

The production of mango in Sultanpur district is

the order of 70,000 tons annually. Similarly, the production
of Amla fruits is approximately 42,000 tons annually. In the
case of mango fruits, the establishment of a pickle unit is
a distinct possibility. In the case of Amla fruit a meticulous
feasibility study has to be carried out to determine whether
the Amla fruit produced in the Sultanpur district is of the
right quality for establishing ayurvedic and/or Pharmaceutical
units manufacturing Chavanprash and Amla hair oil also
manufacturing Vitamin-C as a finished product or as inter-
mediate products for supplying them to pharmaceutical units
which produce Vitamin-C tablets as end product. Commercial
exploitation of $imla fruit on economic consideration would
add to the wealth of the state.
 4.1
CHAPTER_-4

EXISTING STRUCTURE OF INDUSTRIES IN_ SULTANPUR_DISTRICT

4.1 Large and Medium I n d u s t r y

There a r e q u i t e a l a r g e number of l a r g e and

medium scale industries in this d i s t r i c t . The Jagdish-
pur block itself, is having 12 large and medium industr-
ies out of 17 in certain blocks of this d i s t r i c t , invol-
ving an investment of around Rs.880 crores and providing
employment for more than 6800 persons. The details are
given in the appendix -2. The most important large
industries are M/s Indo Gulf Fertilizers and Chemicals
Ltd in Jagdishpur block, M/s Hindustan Aeronautics Ltd
set up at Korwa, Amethi, M/s Bharat Heavy Elect.Ltd.
Jagdishpur.

It has been an account of great triumphs for many

large-scale industries to establish themselves in the
erstwhile backward area of Jagdishpur block in Sultan-
pur d i s t r i c t . With these triumphs is strangely inter-
twined the tragedy of venturing to establish a large
scale-Bicycle project-Samrat Bicycles Ltd. The IFCI has
already disbursed almost Rs.19 crores and striving hard
to repay loans to the Simon Bank, West Germany of the
order of DM 7.2 million (currently valued at Rs.7 crores
which was Rs.3.crores 5 years back). It is gathered
that this large scale project would end up with a
colossal mis-investment from Financial Express, Aug.
29,1990.

Jagdishpur has been chosen to be the key centre

for establishing large scale projects of the Sultanpur
d i s t r i c t . Setting up of a power station (which is under
active consideration) would further facilitate establish-
ment of industries.

4.2 Ancillary Industries

There are six ancillary units of Bharat

Heavy Electricals Ltd in Jagdishpur, and development
of several ancillary units is contingent upon the actual
commencement of production of M/s Samrat Bicycles Ltd.

4.3 Small Scale Sector

The investigation Team has observed that
the small industries are not evenly distributed in the
Sultanpur tehsil. The most developed block with regard
to the expansion of small industries in the Sultanpur

27
 4.2

district as a whole, is Dubepur. There are more than 500

units in this block, followed by around 94 units in
Kurebhar. The worth-mentioning units are, 5 Rice mills,
around 140 oil mills, Aluminium and brass manufacturing
units, 15 bakeries and edible oil producing units - which
is particularly common to almost all the blocks/tehsils.
The other three blocks Kurwar, Jaisinghpur and Dhanpatganj
are less developed by any standard. But Khadi and vill-
age industries and Handloom sectors are evenly spread.

Balanced expansion of wide variety of small

units has occurred in Kadipur tehsil. The units are
mainly engineering-based, though a large number of KVI
units and handloom units are also located in this tehsil.

The small units are highly concentrated in

the Amethi block of Amethi tehsil. The units are mainly
engineering based and agro-processing. Some small scale
units are also existing in Bhadar and Bhetua block, San-
grampur block being less developed in comparison.

In the Musafirkhana tehsil, the Sultanpur

block in the most developed both in terms of large and
small industries in the Sultanpur district as a whole.
In the remaining blocks, the notable units are edible
oil producing units mainly in Shukulbazar and Baldirai:
Wooden furniture making units in Musafirkhana; ready-
made garment manufacturing units and automobile
repairing in Jagdishpur block.

The small units in Gauriganj tehsil are mainly

oriented towards engineering based. This tehsil, compri-
sing of three blocks is moderately developed.

It is gathered from a report, coordinated

by council of Science and Technology, U.P.Lucknow, that
there has been an impressive growth of small industries
in the last few years. Till July,1988, there were 1900
SSI units which increased from 871 in 1984/85. Among
the small scale units established in the district 60 9
units were agro-based, followed by forest-based(388),
engineering based (354) textile based (143) etc.

The engineering-based small industries are

likely to the developed concomitantly with the develop-
ment of large/medium sector engineering projects in
the district. The agro-based industries have got a
very good prospect.

28
 4.3

Although the growth of small industries

appears very impressive, the Investigation Team has
observed that many of them are actually languishing
for one reason or another and they are becoming sick
small units. A number of small units are also seen
afflicted with many problems which would ultimately
throttle their growth.

Appendices 2.01 to 2.22 describe the

pattern of small industries in the 22 blocks of
Sultanpur District. It has to be noted that the survey
has not been able to cover each and every unit of
the district.

There has been an appreciable growth of

handloom sector in the district, with U.P.State Handloom
Corporation playing an influential role promoting this
sector. The handloom units are mostly manned by
traditional weavers. These are concentrated in the blocks-
Bhadar, Dostpur, Kadipur, Amethi.

4. 5 Khadi and Village Industry

The growth of khadi and village industries

has also been impressive, producing a wide range of
products, with KVIC/KVIB playing a crucial role in promoting
the development of KVI units.

4.6 Handicrafts Industry

The products of Handicraft industry are

well diversified and this industry is steadily gaining
prominence.

29
 5.1
CHAPTER_-_5

PROBLEMS_OF-SMALL_INDUSTRY_DEVELOPMENT IN
SULTANPUR DISTRICT

While visiting the different blocks of

Sultanpur district the investigation team has observed
that barring a few blocks, small scale industries have
not properly come up because of many constraints like
infrastructural bottlenecks, Lack of built-in factory
sheds with all other industrial facilities, and skilled
labour, shortages of materials, financial crunch, absence
of entrepreneurial class, absence of approved specifi-
cation and quality, lack of marketing network, market
for the products and overall environment.

5.1 Industrial Estates/Industrial Parks:

In newly developing areas or regions, the

establishment of Industrial Zones Estates through a
conscious social overhead public investment programme
has proved as an efficacious instrument to steer the
inflow of industrial units into these areas. Industrial
estates can catalyse investments which,otherwise would
remain volatile. Industrial Zones can finally be a
most effective instrument for a natural policy of
Industrial location.

The principal objective of such a programme in

almost all the developing countries today is to provide
factory accommodation to industrial enterprises at
suitable locations at economic rents with industrial
utilities such as facilities of raw materials, water,
electricity, transport, banks,post-office,canteens,
watch and ward etc.

5.2 Infrastructure:

In the Sultanpur district, the transport and

communication system is not fully developed. Most of
the villages have no metal road, and the average distance
from the railway station is too long. Much time is
wasted to transport raw materials and the products. Often
they get damaged. Entrepreneurs do not get upto date
information regarding the markets for raw materials and
end-products causing the problem of mismatch between
demand and supply.

30
 5.2

Electricity and water are the two important

items required for the small industries. Supply of
these inputs in some places is inadequate. Frequent
load-sheding may cause under-utilisation of machinery
and labourers. The entrepreneurs incur Losses if they
fail to raise the product prices.

5.3 Manpower;

Shortages of skilled labour pose serious prob-

lem while establishing industries in the district. It
is quite expensive to the entrepreneurs to organise
training for their workers. Either they are to hire
labourers from outside which necessitate higher wage
payment or to employ locally available unskilled labourers.
Product quality suffers and the per unit cost of production
becomes high. Thus it results not only inefficient use
of resources and technology but restricts further techno-
logical innovation. Even the introduction of a new
product or a process which entails a change in the design
of the product resulted from a change in the fads and
fashions may not be feasible.

5.4 Raw materials and Machinery:

Small industries always have to compete with

their big counterparts often for the same raw materials
causing serious hardship.'. Some key raw-materials are
not available in local areas. Supply bottlenecks of
raw materials keep the machinery under-utilized.

5.5. Finance:

The technology used in these industries is

often obsolete. They can not replace them by the impro-
ved state-of-the-art technology because of their financial
problems. Financial constraint hinders the growth of
industries in general and the small scale industries
in particular. Purchase of raw materials, spare parts,
installation of new machinery require sufficient capital
which the small entrepreneurs can not afford. Therefore,
day to day activities become severely restricted. A
small glut in the market or a sudden requirement of repl-
acement machinery may lead to severe losses or closure
of the industry.

A large number of intermediaries exist in these

industries who supply raw materials. They often lend
money to the small units at high interest rates. These
intermediaries squeeze out the major portion of the profit

31
 5.3

from the producers. It affects the process by

shyphoning off the profit from the industries.

5.6 Entrepreneurial availability:

The Entrepreneurial class is almost

non-extent in many blocks area also fails to attract
entreptreneurs from out side because of the infra-
structural bottlenecks. The activities of the Entre-
preneurs are always risky. They required clear perce-
ption of the markets for outputs and inputs and also
their changing pattern. They should have the capacity
to change production programmes immediately with a
sudden change in market demand. Efficient entrepre-
neurs can effectively utilize government policy to
their favour and they can get loans from the banks , and
necessary inputs and secure markets. Therefore, for
this district, an efficient entrepreneurial class has
to be built up who can arrange finance, raw materials,
marketing and labour and has the capability to foresee
the changing conditions of the market to adopt to the
changed situations.

5.7 Markets;

Market demand is the sole consideration

behind establishment of a factory. This demand may
originate locally or outside. Wherever be the origin,
a good marketing network is essential. Small industries
which can produce necessary consumer goods, are of
paramount importance to this district, it is possible
to establish small units which will cater to domestic
consumption as well as to that of the adjoining districts
or other areas. Often small industries face competetion
from the urban cheap goods produced in big-factories.

5.8 Industrial Climate;

For a healthy growth of industry a good

environment is essential. Favourable industrial policy,
trained and disciplined labour force, cheap credit,
good infrastructure and ready market stimulate the
entreprenuers even from outside, to establish small
industries. But majority of these conditions are
in-sufficiently available in the district of Sultanpur
excepting abundunt supply of unskilled labour.

32
 6.1

CHAPTER - 6

DEMAND ASPECTS AND MARKET PROSPECTS FOR SELECTED SMALL INDUSTRY

PRODUCTS

This Chapter discusses demand aspects and market prospects

for selected small industry products in the project area.
Prom the foregoing study of the available resources
infrastructural facilities and other salient characteristics
of the project area, demonstrating, inter alia, non availability
of a venture some entrepreneusial class and a large proportion
of the population engaged in agricultural pursuits, trade and
commerce, it is evident that the programme of small industry
development in Sultanpur district has to be phased, despite
the overwhelming need to achieve rapid industrialization, and
the development of small-Industries would invariably depend
on the availability of entrepreneunal efficiency and skilled
manpower on the shopfloor.
Considering all the pros and cons, the investigation
team has selected certain manufactured products which have
got long continuing demand prospects in the first phase of
small industry manufacturing programmes as envisaged.

These items are :

1) Wheat milling
2) Bread manufacturing
3) Biscuit Making
4) Manufacturing of poultry and cattle feed
5) Manufacturing mustard oil in pouches
6) Manufacturing of Corn flakes
7) Manufacturing of plastic buttons
8) Manufacturing of Nylon Zip Fasteners
9) Manufacturing of Cotton vests knitted
10) Manufacturing of steel trunks
11) Manufacturing of umbrella.
12) Manufacturing of Umbrella Ribs and fittings
13) Manufacturing of Paper pins
14) Manufacturing of Transistor Radios (Low Cost)
15) Manufacturing of CRT Data Display monitors

1) Wheat Milling. .
It will produce the following items.
Maida
Suji
Atta
Bran and Refractories

33
 6.2

Maida is an item of everyday-necessity. In a l l house-

holds, in sweet meat-shop, selling samosa, kachori, Namkin,
and such other eatables and producing semai Maida is extensively
used in the project area. It is a popular food item. The invest-
gation team has estimated that these is a demand for 1,40,000 kgs.
of maida in a month from the market survey carried out in 22
blocks. There is a pent up demand for maida. As the unit producing
maida is established, and the people's taste develop, the demand
generated by 3.7 lakh household of Sultanpur d i s t r i c t will rise
to a much higher level. This demand comes from the household
sector, sweetmeat shops, and production of semai and purchases
made by the people from the adjoining areas bordering the Sultanpur
d i s t r i c t . Along with.-this demand, a quantity of 31,250 kg per month
By bread factory and 28,750 kg per month by Buiscuit factory would be consumed

when establishd.. The investigation team feels that it would be

a prospective proposition to establish a wheat milling plant in
the project area at Sultanpur. The raw-materials for the plant
would be locally available. During 1988-89-, production of wheat
in the Sultanpur d i s t r i c t and UP was of the order of 2.87 lakh tons
and 196.91 lakh tons respectively. The wheat milling industry
in the small scale sector would be based on indigenously produced
raw materials.
2) Bread Manufacturing

According to the market survey carried out by the

investigation team, there is a scope of manufacturing breads
of 400 gm each of approved quality and specifications.
The demand for breads in and around the project area is
10,000 leaves per day. A unit manufacturing at the outset
6,000 leaves a day would be a prospective proposition. At the
moment there is no bread factory in Sultanpur district or in
its periphery. Bread named 'Family Bread1 comes from Varanasi
and a small fraction of the supply comes from Lucknow. The
present government has put manufacturing of bread as a reserved
item in the small scale sector.

3) Biscuit Making
Biscuit of three categories would be produced in the
project area. They will be, like Marie, Glucose, salted
biscuits. Wheat flour of 28,750 kg.per month would go in the
production of these biscuits which have become a common item
of consumption among all classes of people. The demand in
the area would be around 50,000 kg. per month.
4) Cattle and Poultry Feed Manufacturing
It has been found from the Market survey that there
is a growing demand for cattle and pultry feed as it is a
growing activity in agriculture and animal husbandary in

34
 6.3

the district. The demand for cattle feed has estimated at

around 80,000 kg per month and 90,000 kg per month for
pultry feed. The wheat bran required as raw material for
the production would come from wheat milling plant which
is around 37,500 kg per month. So, the prospect of manufact-
uring cattle and poultry feed in a small scale plant is
bright.

5) Manufacturing of Mustard Oil in Pouches

The market potential for producing mustard oil has

been found to be very good by the investigation team, as
it is used in cooking media especially in Delhi, Calcutta,
Norther, Eastern and North-Eastern regions of India. Minimum
installed capacity for an economic unit is 13,300 MT per
month. Mustard seeds produced in Sultanpur and its neighbouring
district could be used in this unit. The estimated demand for
mustard oil would be more than the production capacity of the
plant. Mustard oil cake (by product) is the common cattle feed
which is also used as a manure. This factory is aimred to be
established as an export oriented small industry. The pourches
packed in half or one kg. mustard oil would be sent to big
consuming centres. This establishment of this unit based on
local resources and serving a wide market and employing large
member of local people is highly suggestive.

6) Manufacturinq of Corn Flakes,

Maize made corn flakes has beer introduced as an
important breakfast food item and is gaining popularity among
higher income brakets. Its nutrient content is very high.
Though existing demand is concentrated primarily in the
industrialised blocks of Sultanpur, namely, Amethi,
Dubypur, Jagdishpur and Kadipur, it has high prospect to
spread in other blocks A good market also exists in towns
of Raibarelli, Lucknow, V a r a n a s i , etc.

Economies of scale requires a minimum installed

capacity of 300 MT per year. But the existing local demand
cannot absorb the entire product at present. Some portion of
its product will have to be marketed elsewhere.

Corn Flakes could easily be stored and transported to

distant places. If the product is of approved quality and
specification, it could easily be sold in state towns and
the metropolitan cities of Delhi, Calcutta and Bombay. Recent,
market study indicates the possibility of exporting in the
middle east countries. So long as market is dispersed" and
diversified over a wide region, and the product is of high
quality, it won't have to face localised demand constraint.

35
 6.4

In the two adjoining districts of Sultanpur and

Jaunpur, a sufficient amount of maize is produced as per
the requirement of a standard Corn Flakes manufacturing
unit. Establishment of such an agroprocessing unit based
on local resources, employing local labour and serving
a wide spread national and international market is highly
suggestive.

7) Manufacturing of Plastic Buttons

Garment manufacturing is a big business in Lucknow

and Varanasi and the export of readymade garment is rapidly
becoming a major foreign exchange earner for India. The
growth of button using garments in the local areas due to
recent change in taste have raised the local demand for
button. Keeping this in mind, the production of plastic
buttons has got tremendous market potential if the
production is of approved quality, design, colour and
specifications.

8) Manufacturing Nylon Zip Fasteners

Since Polyester/Nylon Zip fasteners are extensively
used in readymade garments, travel requisites, bags etc. the
investigation team is of the opinion that products of improved
quality has got substantial demand prospects, given the fact
that garment manufacturing is a thriving business in Kanpur
Lucknow and Varanasi.

9) Manufacturing Cotton Vests Knitted

There is no unit manufacturing quality products of
cotton vests. It is learnt that retailers and wholesalers
selling the products mostly get their supply from Lucknow,
Kanpur, Delhi, Varanasi and Calcutta. The demand assessed in
the project area and in its periphery is of the order of
1100 dozens per month. It would be a prospective proposition
to start a small scale unit in the project area with an
initial installed capacity of 10,500 dozens per annum. It is
also observed that this hosiery product will have a ready
market in the local areas and could be exported to the
neighbouring towns of Kanpur, Rae Barelli, Varanasi, etc.
if the product is manufactured as per approved specifications.

10) Manufacturing Steel Trunks

In the project area steel trunk has got popular demand.
Steel trunks are widely used as household articles. These are
strong and can be conveniently transported With various goods
inside. The purchasing power of the people in the project area
being low, any sophisticated manufacturing of suitcases will
36
 6.5

not be in tune with the area's economic status. Wooden

boxes have been traditionally used by the people. Due
to scarcity of wood and the rising prices of wooden
boxes, people's demand has shifted towards the cheap
steel trunk. To start with a small scale unit manufacturing
500 trunks per month will be a prospective proposition. The
main attraction for this product is strength and durability
as against other packing devices. The insvestigation team
is of opinion that the current demand in the project area
is of the order of 750 boxes (trunk) in a month.

11) Umbrella Manufacturing

Umbrella is an item of great necessity. Umbrellas are

extensively used in our country because of different climatic
condition so as to give protection against sun and rain.
There is a very good demand for umbrella in the project area.
According to market report, the total off-take from Delhi
market is estimated to be around Rs.l crore per annum as
Delhi is the main market for umbrella in Northern India.

the item to be manufactured in Sultanpur should be

a common place product, not a very sophisticated variety.
Investigation team is of the opinion that to start with
manufacture of 15,000 umbrellas per annum on a single shift
basis will be a prospective proposition. The demand in the
project area and in its periphery districts is around 25,000
umbrellas per year. Two units manufacturing umbrella may be
setup at two different locations. There is always the
possibility of exporting good quality umbrella to Delhi for
use of common people.

12) Manufacturing Umbrella Ribs and Fittings

With the manufacturing of umbrella in the project area,

umbrella ribs along with flenes, runners, notches, caps and
ferrules are important components. The unit would supply
their end products as inputs to the other two units which will
be engaged in manufacturing of umbrellas. A unit manufacturing
ribs (22,800 gross), flexus ribs (1200 gross), runners (3,000
gross), notches and caps (3,000 gross), ferrules (3,000 gross)
would be a prospective proposition. The surplus production,
if any, after supplying to the two umbrella units will face no
difficulty of exporting to other areas outside the district.

13) Manufacturing Paper pins

A small unit may be set up for manufacturing paper pins
which are of wide use for pinning paper sheets, in offices,
schools, commercial organisations, and government as per the
assessment of the investigation team.

The unit will get ready market in the industrial complex

37
 6.6.

of Jagdishpur and other areas and in government offices.

To start with, quite a small unit producing 1176 kg of paper
pins per month would be a prospective proposition if the pins
are manufactured with proper inspection and quality control.
There is no apprehension of not securing a proper marketing
outlet. The government's store purchase programme can
assist the small unit in achieving efficiency.

14) Manufacturing Transistor Radios (Low Cost)

In the project area, transistor radio is a popular item

for the buyers. Even a fruit_ seller on the street or someone
selling fruit juice from a trolley on the road or a
proprietor of a cloth-shop or someone selling pan and cigarettes
etc. from a tiny kiosks all of them like to possess transistor
raidos to listen to Hindi film music particularly. The demand
in the project area has been assessed by the investigation team
around 20,000 sets per annum. A small unit to start with may
manufacture 12,000 sets per annum. It would be a prospective
worthwhile venture.

15) Manufacturing CRT Data Display Monitors (Monochrome)

This is an electronic industry which may be termed as

Foot-Loose industry. The computer industry in India is
growing very fast with a minimum growth rate of 50%. With
the above growth rate envisaged for the computor industry
there is going to be a very large demand for CRT Data Display
Monitors in our country.

CRT Data Display Monitors form a very essential part of

the computer as they are not only used at the console for the
display of input/output data but also in peripherals such
as data entry terminals. Many computer manufactures of India
are going in for contracts with small scale unit for getting
their supply of CRT Data Display Monitors, reducing their own
inventory and overheads.

The marketing for this product has to be organised

through all India network. This is not an industry for the
consumption of its products in the Sultanpur district as such;
but its products if manufactured as a 'Zero-defect' quality
product as per approved specification, supplied by the large
computer manufacturers, will be booming in the all India market.
This small unit may start with a production capacity of
1000 units per annum.

38
 CHAPTER - 7

CANDIDATE NEW INDUSTRIES

The Investigation Team has examined a host of probable

small industries for introduction in Sultanpur district.
Considering all the pros and cons the team recommends that
the following candidate small industries, in the first phase
of the small industry development programme, appear to have
the best growth potential for development or introduction
into the area after an assessment of the area's present and
prospective demand for manufactured goods.
There is an imperative need that the wheat production in
the district along with the production in the state of U.P.,
it is so needed, should be utilized as indigeneously available
raw material for starting a wheat milling manufacturing
enterprise. The production from such an unit would pave the
way for other manufacturing units to spring up in the vertical
integration process. Maida, one of the end products of wheat
milling would be utilized as a basic raw material for starting
a bread manufacturing unit as well as starting a biscuit making
unit. Maida will also be utilized in large quantities for
producing 'semia', which is a popular food item in the area.
The other end product from the wheat milling is wheat bran,
which has been picked up as a basic raw material for producing
cattle/poultry feed in the area.
Mustard oil manufacturing in pouches,and manufacturing of
corn-flakes are based respectively on large quantities of
agricultural resources, mustard seeds and maize available in the
area.
Most of the other industries are market oriented
excepting manufacturing of CRT Data Display Monitors which
is a footloose.

A. Agro-based Industries : Food Industry

(Raw material oriented)
1. Wheat Milling
(a) Approximate cost of
machinery & equipment - Rs.30,03,000.00
(b) Production capacity - Initially : 9600 M.T. per
annum till it reaches 13500
M.T. p.a.
(c) Area's present demand - 1,40,000 kg. per month.
(d)Employments potential - skilled-19, unskilled-12
Total - 31
39
 7.2

(e) Approximate total investment - Rs.84,66,693.00

2. Bread Manufacturing
(a) Approximate cost of
machinery & equipment - Rs.6,24,000.00
(b) Production capacity - 1,80,000 loaves of 400 gms
per annum
(c) Area's present demand - Around 10,000 loaves of
400 gms per day.
(d) Employment potential - Skilled -18, unskilled-13
Total - 31
(e) Approximate total
investment - Rs.20,28,534.00

3. Biscuit Making
(a) Approximate cost of
machinery & equipment - Rs.17,32,080.00
(b) Production capacity - 525 tons per annum
(c) Area's present demand - 50,000 kg per month.
(d) Employment potential - Skilled-21, unskilled -21
Total - 42
(e) Approximate total investment - Rs.41,56,956.00

4. Cattle/Poultryfeed Manufacturing
(a) Approximate cost of
machinery & equipment - Rs.1,22,760.00
(b) Production capacity - 750 M.T. per annum each
(c) Area's present demand - 80,000 kg cattlefeed p.m.
90,000 kg poultryfeed p.m.
(d) Employment potential - 6
(e) Approximate total investment- Rs.12,69,600.00
5. Manufacturing of Mustard Oil in pouches.
(a) Approximate cost of
machinery & equipment -Rs.3,63,242.00
(b) Production capacity - Mustard Oil- 1,59,600 M.T. p.a
Mustard cake- -287 M.T. p.a.
(c) Area's present demand - Mainly for exports to other
districts and States.
(d) Employment potential - skilled-6, unskilled-3
Total - 9
(e) Approximate total investment - Rs.12,65,780.00
40
 7.3

6. Manufacturing of Corn Flakes

(a) Approximate cost of

machinery & equipment - Rs.9,36,360.00
(b) Production capacity - 300 tonnes per annum
(c) Area's present demand - Mainly for exports to other
districts and States.
(d) Employment potential - 7
(e) Approximate total investment - Rs.23,04,132.00

B. Chemical Industries (market oriented)

7. Manufacturing of Plastic Buttons

(a) Approximate cost of
machinery & equipment - Rs.2,46,000.00
(b) Production capacity - Acrylic - 2,88,000/Yr (Gross)
Urea Formaldehyde - 96,000/year
(Gross)
(c) Area's present demand - For domestic consumption and
export to other states.
(d) Employment potential - skilled - 7, unskilled - 4
Total - 11
(e) Approximate total investment - Rs.4,44,000.00
8. Manufacturing of Nylon Zip Fasteners
(a) Approximate cost of
machinery & equipment - Rs.2 5,92,000.00
(b) Production capacity - 6,p0,000 metres per annum.
(c) Area's present demand - Mainly for exports to big
commercial centres.
(d) Employment potential - skilled - 11, unskilled - 28
Total - 39
(e) Approximate total investment - Rs.36,23,160.00

C. Hosiery Industry (Market oriented)

9. Manufacturing of Cotton Vests knitted

(a) Approximate cost of

machinery & equipment - Rs.34,470.00
(b) Production capacity - 10,500 dozen per annum
(c) Area's present demand -1100 Jozen per month
(d) Employment potential - :i skilled - 10, unskilled-5
Total - 15
(e) Approximate total investment - Rs. 2,35,584.00
41
 7.4

D. Mechanical Engineering Industry

10. Manufacturing of Steel Trunk

(a) Approximate cost of

machinery & equipment - Rs.24,600.00
(b) Production capacity - 6,000 boxes per annum
(c) Area's present demand - 750 trunks per month.
(d) Employment potential - skilled. - 4 , unskilled - 3
Total - 7

(e) Approximate total investment - Rs.2,00,640.00

11. Umbrella Manufacturing (Labour oriented)

(a) Approximate cost of

machinery & equipment - Rs.39,570,00
(b) Production capacity - 15,000 per annum
(c) Area's present demand - 2000 umbrellas per month
(d) Employment potential - skilled - 5, unskilled - 9
Total - 14

(e) Approximate total investment - Rs. 1,99,2 42.00

12. Manufacturing of Umbrella Ribs & Fittings(Labour oriented)

(a) Approximate cost of

machinery & equipment - Rs. 4,72,800.Oo
(b) Production capacity - No.
1. Ribs 22 ,800
2. Flenes 1 ,200
3. Runners 3 ,000
4. Notches 3 ,000
5. Caps 3 ,000
6. Ferrules 3 ,0O0
(c) Area's present demand - Production will be lifted by
2 umbrella making units.
19
(d) Employment potential - skilled - 16, semi-skilled-
unskilled -22 Total - 57

(e) Approximate total investment - Rs.11,20,800.00

13. Manufacturing of Paper Pin etc.

(a) Approximate cost of

machinery & equipment - Rs.1,19,400.00
(b) Production capacity - 1.2 M.T. per month
(c) Area's present demand - widespread demand can be met
through good market network.
(d) Employment potential - skilled - 2 , unskilled -3 Total-5
42
 7.5.

(e) Approximate total investment - R.1,81,500.00

E. Electronic Industry (market oriented)

14. Manufacturing of Transistor Radios (Low cost)

(a) Approximate cost of

machinery & equipment - Rs. 63,600.00
(b) Production capacity - 12,000 sets per annum
(c) Area's present demand - 1OOO sets per month
(d) Employment potential - skilled - 1 0 , unskilled - 10
Total - 20
(e) Approximate total investment - Rs.4,48,800.00

15. Manufacturing of CRT Data Display Monitor (Mono chrome),

Foot Loose

(a) Approximate cost of

machinery & equipment - Rs.2,15,000.00
(b) Production capacity - 1000 Nos/per annum
(c) Area's present demand - Foot Loose industry.
(d) Employment potential - skilled - 1 6 , unskilled - 3,
Total - 19
(e) Approximate total investment - Rs.8,25,000.00

43
 Summary Table

Industrial Unit To tal Investment Total

Employment

1. Wheat Milling Rs. 84,66,693.00 31

2. Bread manufacturing Rs. 20,28,534.00 31
3. Biscuit making Rs. 41,57,000.00 42
4. Cattle/Poultry Feed
Manufacturing Rs. 12,69,600.00 6
5. Production of Mustard Oil Rs. 12,65,780.00 9
in purches
6. Manufacturing of corn flakes Rs. 23,04,132.00 7
7. Manufacturing of plastic buttons Rs. 4,44,000.00 11
8. Manufacturing of Nylong zip
fasteners Rs. 36,23,160.00 39
9. Manufacturing of cotton
Vests(knitted) Rs. 2,35,584.00 15
10.Manufacturing of steel trunks Rs. 2,00,640.00 7
11.Manufacturing of Umbrella Rs. 1,99,242.00 14
12.Manufacturing of Umbrella Ribs
and fittings Rs. 11,20,800.00 57
13.Manufacturing of paper pin Rs. 1,81,500.00 5
14.Manufacturing of
Transistor radio(low cost) Rs. 4,48,800.00 20
15.CRT Data Display Monitors Rs. 8,25,000.00 19
(Monochrome)

306
Rs. 2,44,66,333.00

44
 CHAPTER -8

INDUCEMENTS AND INCENTIVES NECESSARY FOR A BALANCED

GROWTH OF SMALL INDUSTRIES IN SULTANPUR DISTRICT

As induced industralisation in a hitherto non-

industrial area does not take place automatically, cert-
ain incentives and concessions are required to attract pot-
ential centure-some entrepreneurs such incentives might
be offering economic contracts to small industrial units
allotment of built-in factory sheds on economic rents in
Industrial Estates, supply of critical raw materials to
facilitate production programmes, supply of electricity
and water at concessional rates, hire purchase facilities of
machinery and equipment. Other strategies which will
attract enterprising small industrialist to establish
factories in backward or newly industrialising areas are
"money and credit incentives" like financial accommod-
ation and loans at concessional rates provided towards
fixed and working capital of the ventures and development
subsidies and/or fiscal incentives like tax holidays
or exemption to Income tax, Excise, Customs duties, Sales
tax and Octroi for a specified number of years to provide
some sort of indirect protection to mascent industries
which may come up in newly developing areas. Exemption of
customs duties to small units importing efficient machin-
ery and equipment for manufacturing quality products will
accelerate small industry development programme in non-
industrial areas.

Several measures have already been taken in

this direction. Pradeshiya Industrial and Investment
corporation of U.P. has started providing term loan
together with U.P. Financial Corporation. U.P.Minority
Financial and Development Corporation Limited provides
financial assistance to the minority community in the
shape of margin money for small industries. U.P. Financial
Corporation acts as the Government agency for the disbur-
sement of capital. It provides concessional finance
at lower margin to the entrepreneurs. It also provides
seed capital assistance to these entrepreneurs.

The District Industries Centre of Sultanpur

is playing an important role in conducting short-term
Entrepreneurial Training Programmes to develop entrepreu-
rship in the district. It also provides the necessary
guidence to the entrepreneurs.

To transform potential entrepreneurs into

actual and the artisans into small scale entrepreneurs ,
using modern up-dated technology, the role of industrial

45
 8.2

estates providing built-in factory-sheds with necessary

facilities to the small industrialists is of paramount
importance. It is an uphill task for an entrepreneur to
buy an industrial plot, build a factory-shed and acquire
the necessary facilities like electricity, water, common
facility services, etc. before he is in a position to
install his equipment and machinery to commence production.
To obviate these difficulties and hardships of the entre-
preneurs the government must come forward and undertake
social capital investment and build up industrial estates
with the hope that private small industralists would take
the plunge. During the last ten years a number of so
called industrial estates for housing small scale indust-
ries have been built up at different locations of Sultan-
pur district but these are not well thought out and
hence not operating at full capacity.

With respect to raw material supplies, cons-

ultancy services, and marketing assistance some measures
have been taken. U.P. Small Industries Corporation plays
a;' significant role in providing raw materials to small
industries at fair prices. It also offers hire purchase
facilities to small entrepreneurs.U.P. Industrial Consult-
ancy Limited plays a vital role in promoting small and
medium industries. It provides consultancy services to
small and medium entrepreneurs. It helps them carry out
market research and techno-economic feasibility studies.
U.P. State Leather Development and Marketing Corporation
is engaged in the development of artisans involved in
leather industry. The corporation has proposed three
tanneries and one Common Facility Centre in the adjacent
Rae Bareli district. The tanneries, after implementation
will facilitate availability of tanned leather to artisans
belonging to Sultanpur district.

U.P.Export Corporation assists the entrepre-

enars in exporting their products to foreign markets.
The Corporation also provides feed back to the entre-
preneurs on the consumer preference for their products
and trends on new designs in the international markets.

The Government has also provided investment

subsidy, exemption from sales tax and Octroi duty and
power concessions. The state government is providing
subsidy to the small scale units for installation of
diesel generating sets,

New industries in the district are provided

subsidies amounting to 25% of fixed investment. The
existing units going for substantial expansion are also
entitled to subsidy. This comes under Central investment
Subsidy.
46
 The products of industrial units are exempted
from sales tax for a period of 7 years or 5 years.

New industrial units are exempted from power

cuts for 3 years and no minimum consumption guarantee
is required in the first year. New units are also exem-
pted from payment of Octroi duty on machines and building
materials for a period of 5 years.

In spite of so much fiscal and monetary in-

centives it is observed by the Investigation Team that
entrepreneurs are not forth-coming to establish factor-
ies in the sheds in the built-up industrial estates, as
desired. The estates remain under-utilized. Just granting
money and other facilities as mentioned above are not the
panacea for all the ills of small industries. State
machinery should monitor complementary activities. Training
should be given not only to the entrepreneurs under entre-
preneurship development programmes but also to the unsk-
illed labour. Both the labourers and the entrepreneurs
will benefit from such programmes.

Government should provide economic incentives

in the form of long term contract to these entrepreneurs
for purchasing their products. This will ensure the entre-
preneurs a secured market and they will be able to enhance
their operational efficiency within a few years. The
infant industries will be established on a sound footing.
The state should maintain buffer stock of critical raw
materials for the small entrepreneurs.

Another important thing is the timely disbur-

sment of loan to these entrepreneurs. It is observed
by the Investigation Team that these industrialists do
not get loans at the proper time and to the required
extent. The Central Government also plays a very impor-
tant role in developing small industries through (1) -
SISI (2) NSIC and (3) Commercial Banks.

Small Industries Service Institutes were est-

ablished in 1955 as per the recommendations of the Ford
Foundation Expert Team to devise ways and means for the
small industries development in India. Extension service
is the cutting edge of a small industries development
programme. The SISI' s were established to vender technical
guidance and assistance at every step to small industriaL-
ists. Today also SISI, Kanpur, continue to help in small
industries development programme throughtout U.P. in a
big way. Alongwith the establishment of SISI's sprang up
the National Small industries Corporation as a Central
Government enpterprise to augment the growth of small

47
 8.4

industries by providing machinery and equipment on hire

purchase scheme and providing marketing support to the
small industrialists. The Corporation acts with renewed
vigour by supplying machinery and equipment to entrepre-
neurs in U.P. starting new small industries projects.

,..• Disbursement of loans to small scale units

to step up working capital is today, one of the major
activities of the nationalised commerical banks. As
per the present policy of the Govt.of India small indu-
stries belong to the priority sector for laon disburse-
ment by the banks. Timely and adequate payment of loans
by the banks is an imperative for the small industrialists
to administer their business and production programmes
and deliver products to the buyers in time. The Invest-
igation Team has observed that many small industries in
Sultanpur district have become1 sick'today -as they have
failed to secure loans from the banks when they needed
the loans most urgently.

At present in India there are serveral fina-

ncial institutions which provide loans to large industr-
ial projects. With the changed definition of a small
scale industry, with the ceiling of investment in equi-
pment and machinery up to 60 lakhs of rupees, it is
hoped that some of the FI's may provide venture capital
fund to the newly defined small industry projects,
as IDBI-VCF is providing finance to some biotechnolog-
ical blooming ventures in Andhra Pradesh.

One word more. The small industries

development bank of India(SIDBI) has been established. It
has started a new scheme exclusively for women entre-
preneurs under which it provides seed capital assistance
to them for setting up new industrial projects in the
small scale sector, provided the cost of project doest not
exceed Rs. 10 lakhs.

A significant feature of the scheme called

'Mahila Udyam Nidhi Scheme1 is the nominal rate of interest
by way of service charge of one per cent which is payable
annually. Not only this, women entrepreneurs are not required
to provide any kind of security, including collateral
security, to get the soft seed capital. The repayment period
is 10 years including a moratorium up to five years.

The minimum promoters' contribution for

projects to be eligible under the scheme has been fixed at
10 per cent of the total cost and the scheme can cover up
to a maximum of 15 per cent of the total cost.

48
APPENDICES
 Appendix I; List of Entrepreneurs Identified

Name Address

1. Shri N.Misra,B.Sc.(Eng.) Lowther Road,Allahabad

2. Shri Deepal Kapoor, M.Sc C-14, Sec. 20, Indl.Area

Jagdishpur, Sultanpur.

3. Shri A.K.Singh, B.Tech. Opp.DIC, Sultanpur

(Agril.)
S/o Shri Krishna Mohan
4. Shri Man Mohan Agarwal Civil Lines, Sultanpur.

Village Rampur
5. Shri Ajai Kr Srivastava P.O.Damodarpur, SLN.

Kurebhar, Sultanpur.
6. Shri Ramesh Kumar
6, Station Road
7. Shri N.K.Srivastava,B.E. Roorkee(Saharanpur)

8. Shri Sheit Dhaon, B.Yech Jaig Polymors Pvt.Ltd

79, Gulistan Colony
Lucknow-226 001.

9. Shri Naresh Mohan Vill.Pure Hira Lal

Srivastava, LME Kurv;ar, Sultanpur.

10 Shri Tariq Amin M/s Tropics Experts

Jamiat Bldg.Quasimzan
Street, Delhi-110 006

11. Shri Annop Shing Mkajorganj, Sultanpur

12. Shri V.K.Shukls, B.E Amethi, Sultanpur

13. Smt Charanjeet Kaur, Feroz Gandhi Nagar

B.Sc.(Ceramic) Raibareli

14. Shri Ajai Kr.Singh Kharsoma Bazar

B.Sc .(Ag.) Sultanpur.

15. Ajai Kr Singh, B.Sc Kharsema,

Sultanpur.

16. Vijay Prakash Singh,LME Civil Lines, Sultanpur

contd.

49
 Appendix I: List of Entrepreneurs Identified

Name Address

17. Shri Zaved Siddiqui LME Civil Lines, STN

18. Shri Mohd, Samsad Khan LME Shawapur Daudpur

Sultanpur.

The state government and the district authorities are trying

to interest entrepreneurs at Ghaziabad, Kanpur, Calcutta,
Delhi, Bombay, etc. for setting up small industries of various
types in Sultanpur district.

50
 APPENDIX -2

DISTRIBUTION OF LARGE AND MEDIUM SCALE INDUSTRIES IN SULTANPUR

DISTRICT

Sl.No. Name of unit Product Invest Employment

ment
(crores)

1. M/s Indo Gulf Ferti- Urea 740.0 1237

lizers and Chemicals
Ltd I/A,Jagdishpur
2. M/s Bharat Heavy Elect. High Ten- 19.57 472
Ltd. Jagdishpur sion
Insulator
3. M/s S Lal & Company HDPE/PP 1.85
Pvt.Ltd,Jagdishpur 70
Woven Sacks
4. Rashtriya Petro- Foam Leather 1.68 187
Chem Pvt.Ltd,
Jagdishpur
5. M/s Gyan Packaging HDPE/Woven 1.54 53
(P) Ltd,Jagdishpur Sacks

6. M/s Jugal Steel (P) Steel 1.39 120

Ltd, Jagdishpur castings

7. Balram Paper & Board Paper & 1.33 150

Pvt.Ltd,Jagdishpur Board

8. M/s Agro Paper Moulds Duplex Board. 1.29 150

Ltd,Jagdishpur
9. M/s Jagdishpur Hi- Security 1.22 500
Tech Printers, printings
Jagdishpur

10. M/s Kanhaiya Packaging DPE/Woven 1.11 53

(P)Ltd,Jagdishpur sacks

11. Jaik Poly marsh Pvt. Plastic 0.99 85

Ltd, Jagdishpur Medical
Disposable
12. M/s Golden Crispies Excluded 0.68 31
India, I/A,Jagdishpur snacks
food

13. M/s Samrat Bi-cycle Bi-cycle 35.0 80C

Ltd, Kanhar,Gauriganj

contd...
51
 APPENDIX_-2_
DISTRIBUTION OF LARGE AND MEDIUM SCALE INDUSTRIES IN SULTANPUR DISTRICT.

S1.No. Name o f u n i t Product Investment Employment

(Crores)

14. M/s Usha Rectifier Galvanising 12.60 513

Bani, Gauriganj Sheet
15. Auluk & Co.(P) Solvent o i l 1.48 50
Ltd,I/A,Tikaria,
Gauriganj

16. M/s Hindustan Aero- Air c r a f t s 50.0 1500

nautics Ltd,Karwa,
Amethi

17. M/s Kisan Sakhari Sugar 8.42 850

Chini Mill Ltd,
Sultanpur

52
 Appendix 2 .01

Existing snail industries in different blocks of Sultanpur District.

Name of the Block : Name of the Tehsil:

KURWAR SULTANPUR

Sl .No. Name of the No .of No .Of No .of Work- Fixed Produ- •type of
enterprise unit people skil- ing capi- cts/ owner-
employed led capi- tal Service ship
people tal (lakhs)
(lakhs)
1. Confectionaries 1 2 1 0.15 0.25 Conf- Prop-
ectio- prie-
naries tor-
ship
2. Leather 1 5 5 0.25 0.43 Leather -do-
purse ,bag bags; &
purse
3. Dari Making 1 10 10 0.15 0.85 Dari Regi-
plain cotton stered
waste
4. Fabrication 12 27 15 1.26 2.84 Gate, prop-
work window riet-
orship
5. Leather shoe 8 16 16 0.49 0.45 Leather -do-
shoes
6. Steel furniture 2 9 4 0.35 0.15 Steel -do-
furni-
ture
7. Sawing of timber 3 15 5 0.45 1.65 Sawing -do-
of
timber
8. Wooden furniture 10 15 15 0.39 0.45 Wooden -do-
making furn.
9. Cement Jally 1 3 1 0.12 0.15 cement -do-
jally
10. Candel 1 2 2 0.09 0.12 Candel -do-
11. General Engg. 5 17 11 0.26 1.39 Repair- -do-
ing &
servicing

53
 Appendix 2.02
Existing snail industries in different blocks of Sultanpur district.

Name of t h e Block : Name of t h e T e h s i l :

KUREBHAR SULPANPUR

Sl .No. Name of the No .of No .of No .of Working Fixed Produ- Type of
enterprise unit people skilled capital capit- cts/ members
employ- people (lakhs) al Serv. ship
ed (lakhs)
1. Wooden f u r n i - 18 54 54 0.72 4.35 Wooden Propri-
shers making furni. etor-
ship
2. Sawing of tinker 11 35 22 1.35 3.35 sawing -do-
of timber
3. General Engg. 2 6 4 0.34 0.52 Repai- -do
ring &
servi-
cing
4. Agri. implement 1 3 3 0.15 0.25 Agri. -do-
imple-
ments
5. Brick kiln 1 50 5 0.75 1.50 Bricks -do-
6. Rice mill 1 7 2 5.65 12.90 Rice -do-
7. Welding work 4 8 8 0.09 0.35 welding -db-
service
8. Cement j a l l y 4 12 4 0.36 0.63 Cement
jally -do-
11. ROC pipe 1 37 5 8.85 5.65 RCC Part-
Pipe ner-
ship
12. Battery repairing 1 2 1 0.15 0.23 Battery Propr-
Repar. ietor-
ship
13. Washing.soap 1 5 4 0.35 0.49 washi- -do-
ng soap
14. Radio Repairing 5 10 5 0.09 0.37 Radio -do-
Reapir.
15. Fabrication 4 14 8 0.43 0.73 Cycle -do-
channel
16. Steel box 1 9 3 0.15 0.9 Steel
box -do-

54 Contd
 Appendix 2.02
Existing snail industries in different blocks of Sultanpur d i s t r i c t .

Name of the-Block : Name of the Tehsil :

KUREBHAR SULPANPUR

Sl .NO. Name of the No .of NO .Of NO .Of Working Fixed Produ- Type of
enterprise unit people skilled capital capit- cts/ member-
employ- people (lakhs) a l Serv. ship
ed (lakhs)
17 Ice candy 2 10 2 0.35 1.15 Ice Proprietor
candy ship
18. Automobile 8 19 9 0.56 1.35 Auto —do—
Repairing Rep.
19. Leather shoes 4 8 8 0.39 0.57 Leather -do-
shoes
20. Tile maker 2 10 10 0.40 0.90 Clay -do-
tile
21. Electric rep. 1 2 2 0.15 0.30 Elect.
repair -do-
22. Tailoring shop 11 22 22 0.59 0.85 Garment -do-
23. Steel Rolling Steel
mills 1 37 15 12.50 46.90 Rolling -do-
24. Printing press 2 10 10 0.18 0.83 P r i n t -
ing -do-
25. Gas stove 1 2 2 8.03 0.10 Rep.of
rep. steel -do-
26. Nankeen 1 4 4 0.09 0.13 Namkeen -do-
! 27. Elec.stabiliser 1 4 4 1.45 4.65 Stab. -do-
28. Cycle repairing 2 3 3 0.06 0.09 Cycle
rep. -do-
29. Grinder of spices 2 6 2 O.18 0.43 spices -do-
30. Confectionary 1 4 4 0.15 0.35 Conf. -do-
31. PVC Footwear 1 15 10 1.15 9.85 PVC -do -

55
 Appendix 2.03
Existing small industries in different blocks of Sultanpur district.
Name of the Block : Name of the Tehsil :
JAINSINGHPUR SULTANPUR

Sl .NO. Name of the No .of No .of No.of Work- Fixed Prod- Type of
enterprise unit people skil- ing capi- ucts/ owner-
employed led capi- tal Serv. ship
people tal (lakhs)
(lakhs)

1. Rice mill 1 3 1 0.35 0.47 Husk- Prop-

ing of rietor- •
rice ship
2. Brick kiln 2 50 10 3.30 1.15 Brick -do-
kiln
3. Tile making from
clay 3 33 12 1.75 0.95 Tiles -do-
4. Sawing of timber 6 30 12 0.75 3.60 Sawing -do-
of
timber
5. Wooden furniture 12 22 22 0.66 0.45 Wooden -do-
making fumi.
6. Confectionary 1 3 2 0.24 0.39 Confec-
tionary -do-
7. Steel fabrication 10 35 22 0.75 0.86 Gate
channel -do-
8. General Engg. 6 21 15 0.39 2.45 Rep.
& Ser-
vicing -do-
9. Leather shoe 4 12 12 0.36 0.28 Leather
shoes -do-
10. Suriki 1 5 2 0.25 1.35 Surki -do-

56
 Appendix - 2.04

Existing small industries in different blocks of Sultanpur district.

Name of the Block : Name of the Tehsil :
BHANDIYA SULTANPUR

Sl .No Name of the No.of No.of No.of Work- Fixed Prod./ Nature
enterprise unit people skill- ing cap. Serv. of own-
employed ed cap. (lakhs) ership
people (lakhs)

1. Washing soap 11 1.50 3.75 Wash- Partner-

ing ship
soap

2. General Engg. 18 0.45 3.45 Rep.&

Serv. Proprie-
torship

3. Leather shoe 0.21 0.75 Leather

shoe -do-
4. Sawing of 0.55 1.35 Sawing
timber of
timber -do-

5. Brick klin 50 1.55 0.45 Brick

kiln -do-

57
 Appendix 2.05

Existing small industries in different blocks of Sultanpur district.

Name of the Block: Name of the Tehsil

DHANPATGANJ ! • • •
SULTANPUR

Sl .No Name of the No .of No.Of No .Of Work- Fixed Prod./ Nature
enterprise units people skill- ing cap. Serv. of own-
employed ed cap. (lakhs) ership
people (lakhs)

1. Detergent powder 1 5 3 0.65 2.39 Det- Proprie-

erg- torship
ent
powder

2. Fabrication 5 12 12 0.35 0.55 Gate, -do-

Jally etc

3. Leather shoes 6 12 12 0.36 0.39 Leather

shoes -do-

4. Cement jally 1 5 5 0.15 0.49 Cement

jally
gamla -do-

5. Sawing of timber 3 17 5 0.21 2.35 Sawing

of
timber -do-

6. Wooden furniture
making 9 18 18 0.45 0.54 Wooden
furn. -do-

7. Tailoring 8 16 16 1.60 2.15 Garments -do-

8. General Engg. 5 11 11 0.45 0.75 Repair-

ing of -do-
Radio

9. Radio repairing 4 8 8 0.15 1.08 Repair-

ing of -do-
radio

10. Watch repairing 2 2 2 0.09 0.24 Repai-

ring of -do-
watch.

58
 S/2.1

S / 2 . Profile for a Bread Manufacturing Plant (Food Industry)

I. product and its uses

Bakery industry comprises an important segment of indu-

strial activity in food processing industry in the country. It
provides nutritious breakfast and food to a large number of
househods in cities, towns and even villages of India. Bread
and biscuits consumption is increasing everyday and these are
being increasingly used for various feeding programmes.
Bakery industry has also an important role in popularising wheat
in traditionally non-wheat consuming regions of the country.

II. Market Potential

1. Bread manufacturing has been kept reserved for the small

scale sector by the new industrial policy of the NF Government.

2. Manufacture of bakery products has substantial scope

for development in smaller towns, villages and backward areas
and can provide a good number of employment opportunities at
different levels.

3. In Sultanpur district there is no factory producing

quality bread. "Family Bread" comes from Varanasi to meet a
fraction of demand for bread in Sultanpur district.

III. Production Targets (Per Annum)

Qty, 1,80,000 loaves of 4 00 gms.

1. The scheme is worked out per shift basis and 300 working
days per annum.

2. The daily production of bread loaves has been assumed

at 6000 loaves of 400 gms.

IV. Production details and process of manufacture

Dough is prepared by kneading all the ingredients

together in the kneading machine. The bowl is removed and mixing
is done at intervals of 4 0 minutes. The mixed dough is fermented
for two hours, knocked back and rested for 30 to 4 0 minutes. The
dough is ready for dividing. The dividing is done as per the
size of the load to be manufactured.

The divided dough are panned and kept for final processing,
When the dough attains a particular raising, they are baked for
minutes at 4200 F. Based dough is cooled sufficiently. Sliced
and then wrapped.

. 91
 S/2.2

V. Quality c o n t r o l and standards

IS : 1485-1968

VI. Land & Building ( Rs. )

Land 1000 sq.mtr. @ Rs 120
B u i l t up area including 1,20,000
storage,processing room,
laboratory, office e t c ,
600 sq.mtr. @ Rs 760 5,76,000
6,76,000

VII. Machinery & Equipment

Sl .No . Description No. Rate Value

1. Flour sifter 2
2. Dough kneader cap 100 kg/charge 3
3. Hand divider cap 400 gr
(500-800 loaves per hr) 2
4. Moulding m/c 1000 loaves per hr. 1
5. Electric oven cap 1 ton per day 2
6. Bread slicing cum-sealing
m/c. cap. 4 00-500 loaves/hr 2
7. Miscellaneous equipment e.g.
vessels, trays pans work tables
cooling rack L.S.
8. Platform weighing scale 100 kg 1
9. Counter scales cap 0-2 kg 4
10. Laboratory equipment L.S.
11. Erection & Installation @ 10%
12. Office furniture & equipment

6,24,000

92
 S.2/3

VIII. Staff & Labour

No. Rs.

Administrative & supervisory

1. Factory Manager 1
2. Accountant/Cashier 1
3. Sales Manager 1
4. Clerk cum Typist 2
5. Sotrekeeper cum Purchase man 2
6. Salesman 2
7. Peon-cum-Watchman 1
9,480

Technical Personnel

1. Production Supervisor-cum-baker 1
2. Engineering Supervisor 1
3. Mechanic 1
4. Skilled worker 6
5. Unskilled worker 12
12,960
Total 22,440
20% perk 4,488,
26,928

IX. Raw m a t e r i a l s (Per month)

Qty .in Rate/ Value

kg kg.

Wheat flour 31250

Sugar 125 0
Salt 625
Vegetable f a t 1250
Yeast 300
Mineral yeast food/dough conditions
vitamins and other chemicals e t c . L.S
Waxed paper
1,83,450 .

X. Utilities Rs.
1. E l e c t r i c i t y & Power
2. Water
3. Fuel
6,000

93
 S/2.4

XI. Other expenses (per month)

Rs.

Postage and stationery

Consumable stores
Telephone
Repairs and maintenance
Insurance and taxes
transport charges
Advertisement and publicity
Miscellaneous
19,800

XII. Working Capital (per month)

Raw material 1,83,4 50

Utilities 6,000
Salary 26,928
Other expenses 19,800
2,36,178

XIII. Total capital investment

Land and building 6,96,000

Machinery & Equipment 6,24,000
Working capital for 3 months 7,08,534
20,28,534

XIV. Cost of production (per annum)

Total recurring cost 28,34,136

Dep. on machinery & equipment
@ 10% 5,460
Dep. on building @ 5% 28,800
Dep. on office equipment @ 20% 4,800
Int.on total investment @ 15% 3,04,280
31,77,476

XV. Total Sales (per annum)

Item Qty . Rate Value (Rs.)

Bread 18,00,000 2.10 37,80,000

XVI. Profitability (per annum)

Return on sales 16%
Return on capital 3 0%
Breakeven point 52%

94
 S/2.5

XVII. Names and addresses of machinery & Equipment supplied

1. M/s Baker & Co . (P) Ltd.
Oomrigar Building
Opp. Crawford Market
Bombay - 400003 .

2. M/s Nagpal Bros.

2789, Zorawar Singh Marg
Delhi 110006.

3. M/s Mangal Engg. Works

Lahori Gate
Patiala.

4. M/s J.C. Dass & Bros.

33/8, Ananth Nath Dev Lane
Cal - 7000037.

5. M/s Ever Fresh Product

Ram Bagh
Indore (MP).

6. M/s New Engg. Industries

Firozepur Road
Ludhiana

7. M/s Bijoy Engineers

Mini Industrial Estate
Arimpur Trichur-680611
Kerala.

8. M/s Brady & Morris Engg. Co .Ltd .

12/14, Meer Nariman Road
Fort
Bombay - 400023.

9. M/s Verma Bros. Engineering Industries(Regd.)

Industrial area
Rajpura
Punjab.

XVIII. Names and addresses of raw materials, components and

spare suppliers.

Locally available.

95
 S/3.1

S/3.Profile for a Biscuit Manufacturing Unit (Food Industry)

I. Product and its uses

Biscuits which constitute an important item of bakery

industry have now become a common item of consumption among all
classes of people. With tea or coffee, biscuits makes a tasty
nutritious snack. It has become more and more popular as a
convenient food. With the rise in population greater urbanisation
and improvement in the standards of living of the people, there
has been a gradual change in the food habits of the people during
the last few decades. With these changes taking place in the
economic life of the masses, the consumption of biscuits has been
increasing over the years and this envisages the scope for further
expansion or development of this industry in the smaller towns,
villages and backward areas.

II. Market Potential

The consumption of biscuits has been increasing over

the years. The biscuits are being increasingly used for various
feeding programmes managed by voluntary agencies, State Department
of Health, Education and Welfare. At present, the biscuits
annually a major portion of which are manufactured by small scale
sector. About 50 per cent of total production is of glucose
variety, thin arrowroot biscuits account for 10 per cent, another
5 per cent are of salted variety, whereas 25 per cent are of sweet
assorted like coconut cookies, cream biscuits etc. The Govt
agencies which are making bulk purchases of this item are Defence,
Railways, Hospitals ITDC, airlines, fair price shops like Superbazar,
Cooperative Consumer Stores etc. Besides,biscuits are also now
being exported.

III. Basis and Presumption

This scheme is based on a single shift per day with 300

working days/annum.

IV. Production Target (per annum)

Quantity 5 25 tons
Value Rs 83,64,000
V. Production Details and manufacturing process

The process of biscuit making is very simple and the

various ingredients normally used are (a) Maida,(b) Ghee,
(c) Sugar, (d) Baking powder, (e) Milk powder/condensed milk
and (f) essence, chemicals etc.

These materials weighed quantity etc. mined together

except maida in a poaste form. The paste is then transferred to
a mixer alone with required quantity of maida and the dough is

96
 S/3.2

prepared. The dough thus prepared is brought to the biscuit

moulding and cutting machine where dough get a desired shape and
size which is then passed on the oven for baking. The baked
biscuits are cooled to make them crispy and then sent to packing
department.

VI. Quality Control and standard

As per ISI specification No.1011-1968

VII. Land & Building

Rs.
Land 1500 sq.meter
Built-up area including storage
processing room office,
laboratory etc. 7 0 sq.meter
8,52,000

VIII. Machinery & Equipment

S .No. Description No. Rate Rs.

1. Flour sifter 1
2. Sugar grinder 1
3. Dough mixer 100 kg/batch 1
4. 33" Rotary moulder 1
5. 33" automatic rotary cutting and
punching m/c complete with
standard accessories 1
6. Dough brake complete with standard
accessories 1
7. 33"x70" oil fired baking
oven complete with standard
accessories 1
8. Two tier cooling conveyor com-
plete with standard accessories 1
9. Stacking & packing table
complete with standard
accessories 1
10. Oil spray machine with heater
complete 1
11. Dough trolley 2
12. Milk spray nozzles and air
compressor 2
13. Miscellaneous equipment L.S.
14 . Laboratory equipment Electri-
fication and installation @ 10%
on machinery & equipment L.S.
Cost of tools & implements
Cost of office equipment & furnit.
17,32,08C

97
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IX. Staff & Labour

Administrative
1. Factory Manager 1
2. Sales Manager 1
3. Accountant 1
4 . Storekeeper 1
5. Clerk-cum-typist 2
6. Salesman 2
7. Peon/Watchman 4

Technicians
1. Production Manager 1
2. Production Supervisor-cum-Chemist 2
3. Lab Assistant 1
4 . Plant Maintenance Supervisor 1
5. Skilled workers 8
6. Unskilled workers 15
7. Sweeper 2

Park @ 20%

35,280

X. Raw material

Qty Rate Rs.

kg. kg/Rs.

1. Heat flour 28,750

2. Sugar 8,750
3. Vegetable fat 5,190
4. Liquid glucose 680
5. Miscellaneous items,
milk powder, yeast,
colour, flavour,cocovit
fat, golden syrup,
chemicals, e t c . L.S.
6. Packaging Materials L.S.
4,27,812

XI. Utilities
1. Power
2. Water
3. Fuel
21,600

98
 S/3.4
(PS.)
XII. Other Expenses(per month)

1. Postage & stationery

2. Telephone
3. Consumable stores
4. Advertisement and publicity
5. Transport charges
6. Repairs & Maintenance
7. Insurance & taxes
39,600

XIII. Working Capital (per month) 5,24,292

XIV. Total capital investment

Land and building

Plant and machinery
Working capital for 3 months
41,56,956

XV. C o s t of p r o d u c t i o n (Per annum)

1 . T o t a l r e c u r r i n g expenses 62,11,504
2. Dep .on b u i l d i n g @ 5% 33,600
3. Dep . on machinery & equipment @ 10% 1,49,280
4. Dep. on t o o l s & implements § 20% 4,800
5. Dep. on office equipment & furniture 6,000
6. I n t e r e s t on t o t a l investment @ 15% 6,23,544
71,08,728

XVI. Total Sales (per annum)

Item Qty. Rate Rs.

Thin/Marine 230
Glucose 115
Salt/snax 180
83,64,000

XVII. P r o f i t a b i l i t y (per annum) 83,64,000

71,08,728
12,55,272
Less 10% sales commission 1,25,327.20-

11,29,744.80

% p r o f i t on s a l e s 13.5%
% r e t u r n on c a p i t a l 27%

XVIII. Break even p o i n t 51%

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 S/3.5

XIX. Names and Addresses of Machinery and Equipment s u p p l i e r s

1. M/s Baker & Co . (P) Ltd.

Opposite Crawford Market,
Oomrigar Building
Bombay - 2.

2. M/;s J . C . Dass & B r o t h e r s ,

3 3 / 8 , Anath Math Dev Lane,
Belgachia
Calcutta - 3 7 .

3. M/s Manga1 Engg . Works

Lahori Gate
Patiala (Punjab) 147001.

4. M/s Sembhi Industries

117-118, Opp.Kanya Maha Vidyalaya
Aman Nagar
Jalandhar 144 004 .

5. M/s Nagpal Brothers

2789, Zorawar Singh Marg
Delhi.

6. M/s Fedric Herberts & Co.,

10 Second Part Lane
Bombay - 5 .

100
 S/4.1

S/4 .Profile for a Cattle Feed/Poultry Feed Manufacturing Unit

(Food Industry)
I. Product and Its Uses:

With the development of Dairy in India there is a

very good demand for cattle feed which is mainly used for
cows, buffaloes, bullocks etc. Health of cattle depends on its
feed. Generally cattle/poultry feed must contain good amount
of food nutrients such as protein, carbohydrates, fats, vitamins,
minerals etc. Therefore each feed should have right proportion
of such ingredients.

The main ingredients of cattle feed are oil cake,

wheat or rice bran, vitamin mix etc, while those of poultry feed
are maize, rice, polished wheat, oil cake fish meal etc.

II. Market Potential:

The per capita consumption of milk and eggs in India is

only about 50% of what we need. Cattle farming and poultry farming
have now a days been considered as active a growing activity>
in agriculture or in animal husbandary. There are very few large
manufactures in this line. With increase of cattle and birds
demand of cattle feed and poultry feed goes on increasing.

III. Production Target(Per Annum)

Qty. Value(Rs.)

1. Cattle feed. 75 0 MT

2. Poultry feed 750 MT

IV. Process of Manufacture

Grinding - mixing - packing

VI. Quality Control

As per ISI:
Cattle Feed - IS No. 2052-1975
&
Poultry Feed- IS No. 1374-1968

101
 S/4.2

VII. Land & Building

Land:

5000 sq.m.

Building:

Size in ft, Area

Process hall 40 x 30 1200 sq.ft.
Store(2) 40 x 20 1600 sq.ft.
Laboratory 20 x 10 200 sq.ft.
Office 20 x 10 200 sq.ft.

3200 sq.ft.

VIII. Machinery and Equipment

1. Disintegrator size 30" 1 No.

2. Mixer capacity IT 1 No.
3. Weighing scale capacity
300 kg. 1 No.
4. Misc. equipment
5. Laboratory equipment
(L.S.)

Electrification and Erection @ 10%

Office furniture and tools 1,22,760.00

IX. Fixed Capital

Land 1,20,000.00

Building 3,07,200.00

Machinery 1,22,160.00
5,49,360.00

102
 S/4.3
(Rs.)
X. Working Capital(P.M.)

Staff and Labour

1. Production Supervisor/Chemist 1 No.

2. Clerks/Store keeper 1 No.
3. Skilled workers 2 Nos.
4. Helpers 2 Nos.

3720.00

Perquisites @ 15% 4278.00

XI Raw Materials(P.M.)

Qty Rate Total

in MT per MT

1. Groundnut oil cake 18.750

2. Wheat bran 37.500
3. Rice bran 25.000
4. Maize 12.500
5. Molasses 6.250
6. Mineral Mix
and
Vitamin Mix (L.S.)
7. Fish Meal 12.500
8. Bone mean 12.500

2 ,11 ,050

9. Gunny bags for packing

(50 kg in each bag) 2500 Nos. 9 ,000

2 ,20 ,050

XII. Utilities(P.M.)

1. Electricity 3000 units

2. Water
3. Grease, machine oil, etc,
2 ,040

103
 S/4.4
(Rs.)
XIII. Other Expenses(P.M.)

1. Repairs and maintenance

2. Consumable stores
3. Transport
4. Postage and stationery
5. Telephone
6. Miscellaneous

1,680.00

XIV. working Capital(P.M.)

1. Staff and Labour

2. Raw material

3. Utilities

4. Other expenses

2,40,048.00

XV. Total Capital Investment

1. Fixed Capital
2. Working capital for 3 months

Say 12,69,600.00

XVI. Cost of Production (P.A.)

1. Working Capital

2. Dep. on building @ 5%
3. Dept. on machinery @ 10%
4. Dep. on furniture and tools @ 20%
5. Interest on capital investment @ 15%

Say 30,99,240.00

104
 S/4.5

XVII. Sales(P.A.)

Qty * Rate/MT Value (Rs.)

(Rs.)

1. Cattle feed 750 MT

2. Poultry feed 750 MT

36,00,000.00

XVIII. Profit (P.A.)

Sales - Cost of Production

= Rs.( 3 6 , 0 0 , 0 0 0 - 30,99,240)

= Rs. 5,00,760

XIX. Rate of Return

(a) On capital investment 39.4%

(b) On Sales 13.9%

XX. Break even point 34.8%

XXI. Machinery Suppliers

1. M/s. Batliboi & Co.(P) Ltd,
Apeejay House
V.B. Gandhi Marg
Bombay-2.
2. M/s. D.P.Pulveriser Works
12, Nagindas Master Road
Behind Museum
Fort, Bombay-400023.
3. M/s. Guru Siddeshwara
Engineering Works
Near Indi Pump
Hubli Karnataka.

XXII. Raw Materilas Suppliers

Locally available.

105
 S/5.1

S/5. Profile for a Mustard Oil Manufacturinq Unit

(Food Industry)

I. Products and its Uses

Oil seed crop occupies an important position in the

agricultural and industrial economy of the country and
accounts for about 10 per cent of the total cropped
area. Mustard seed is one of the five major oil seeds
from which edible oil is produced. Mustard oil is the
medium of cooking in almost of all the states of Eastern
region, specially in Eastern region. It is also consumed
as an edible oil in large quantity in Delhi and U.P
areas particularly it is also used for medical purposes
as it contains proteins. Mustard oil cake (by-product)
is the common cattle feed which is also used as a manure
as it has got high nutritional value.

II. Market Potential

It has enormous demand as used in cooking media especially

in Northern, Eastern and North-Eastern regions of India.

III. Production Targets (Per Annum)

Mustard oil 1,59,600 M.T.

Mustard cake 2 87 M.T.

Rs. 41,36,160.00
IV. Basis and Presumption

1 1. Land should be purchased in Industrial area.

2. Rates may vary according to season.

V. Production Details and Process of Manufacture

The seeds are to be dried in sun (if these are not

dried) and then they are to be cleaned by shakers to
remove dust and the foreign matters. The seeds are
then passed through the expeller and the process is

106
 S/5.2

repeated till the maximum oil is extracted out of

the seeds. The filtered oil is filled into containers
which are subsequently sealed labelled for marketing.
On an average 33 to 35 per cent of recovery from
the seed will be made depending upon the quality of the
seeds.

VI. Quality Control and Standard

As per 'Ag mark' specification, ISI Specification No. IS

546-1975(2nd Revision)

VII. Land and Building

Rs.

1. Land-350 sq.m.
2. Covered are including workshed,
godowns, store etc.-245 sq.m.

3. Boundary Wall etc.

TOTAL 1,74,000.00

VIII. Machinery & Equipment

Sl.No. Description No. Rs.

1. Baby oil expeller No.l extra heavy

duty with single steel great set and
long heating kettle (Chamber 27 x 5)
9 bolts, capacity 2 M.T./24 hrs. 2

2. 25 H.P. Motor with starter and switch 1

3. Filter Press frame type 18" x 18"

x 18" plates plunger pump and filter
cloth 1
4. Baby boiler 200 kg. capacity 1

5. Oil storage tank 3

107
 S/5.3

Sl.No. Description No. Rs

6. Shaker screen with blower

7. Weighing scales platform type

100 kg. capacity

1,61,136.00

Electrification and Installation charges

@ 10% of the cost of machinery

and equipment

8. Cost of belt, pulley, other tools

fixtures etc.

9. Cost of office furniture and

equipment 6,000

1,89,242.00

Total fixed cost Rs. 1,74,000 + 1,89,242 = 3,63,242.00

IX. Staff and Labour (P.M.)

A. Administrative and Supervisotry (Rs.)
a) Manager-cum-chemist 1
b) Accountant-cum-storekeeper 1
c) Purchase-cum-salesman 1

d) Chowkidar-cum-peon 1 \
3,540.00

108
 S/5.4

B. Technical Staff No. Rs. (Rs.)

a) Skilled workers 2

Unskilled workers 3

Perquisites @ 25% of salary and wages 7,188

X. Raw Materials (P.M.)

Mustard seed 38 tonnes

Containers 16 kg capacity 813 Nos,

Gunny bags 310 Nos.

2,85,960

XI. Utilities(P.M.)

1. Power 2730 KWH

2. Water

3. Fuel for boiler

2,598.00

XII.Other Expenses(P.M.)

1. Stationery and Postage

2. Consumable stores
3. Telephone
4. Repairs and Maintenance
5. Transport charges
6. Advertisement, publicity and label
for containers
5,100.00

109
 S/5.5

XIII. Working Capital(P.M.) Rs•

Personnel (salary and wages) 7,188

Raw materials 2,85,960

Utilities 2,598

Other expenses 2,5 0,7 05

Working Capital for 3 months 9,02,5 38

XIV. Total Capital Investment

1. Fixed Capital 3,63,242

2. Working capital for 3 months 9,02 ,538

12,65,780

XV. Cost of Production(P.A)

1. Total working capital
2. Dep. on machinery and equipment
@ 10%
3. Dep. on office furniture and
tools @ 20%
4. Interest on total capital investment
@ 15%

38,18,532

XVI. Total Sales (P.A.)

Mustard oil 9975 tins @ Rs.346 per tin 34,51,350

Mustard oil cake 287 tonnes

@ Rs.2,400 per ton 6,88,000

41,40,150

XVII. Profitability (P.A.)

Rs. 41,40,150 - 38,18,532 = Rs. 3,21,618
Profit on sale = 7 . 8 %
Return on Capital Investment = 25%

110
 S/5.6

XVIII. Break Even Point

XIX. Names and Addresses of Machinery and Equipment Suppliers

1. M/s. Delhi Iron & Steel Co.(P)Ltd.
G.T. Road
Ghaziabad (U.P).

2. M/s. Lyallpur Engg. Co.

G.T. Road
P.B.No.9
Ghaziabad (U.P.)

3. M/s. S.P.Engg. Co.

79/9, Latonche road
P.B.No.218
Kanpur.

4. M/s. Punjab Engg. Works

32, Ram Krishan Samadhi Road
Calcutta - 54
5. M/s. Swastik Engg. Works
198, Panjara Pole Road
Bombay - 4

Raw materials, components and spares are locally available.

Mustard Oil in Pouches

The mustard oil is produced by crushing the mustard seed and the
packing is to be made in plastic pouches weighing 1/2 kg. or
1 kg. of net oil. The idea is that these pouches would be
exported from Sultanpur to other cities or distribution centres,
which conspicuously consume mustard oil for edible purposes.

The liquid oil is transferred into an automatic fill seal machine

to which printed food grade film in the form of rols is supplied
from other end. The food grade film is cut and sealed from
three sides to make open pouches.

The size of the pouches has been kept at 1 kg and 1/2 kg. The
oil is filled in and the puch is vacuum sealed. Finally they are
transferred to the storage tank where they are kept at suitable
temperature.

1ll
 S/6.1
S/6. Profile for a Corn flakes manufacturing Unit

(Food Industry)

I. Product and its uses

India is predominantly and agricultural country. Due

to the progressive increase in farm, produce, a need has been
felt to develop more agro-based food processing industries
to make gainful utilization of the raw material resources and
to provide remunerative prices to the growers. Maize is
one of the important commercial food-grains grown abundantly
in our country. Punjab, Haryana, U.P., M.P. Bihar,
Karnataka, Rajasthan are the main maize growing states in
the country. The maize is processed for the manufacture
of oil, flour, starch, liquid glucose, dextrose, etc.
Besides pop-corn, maize is also used for the manufacture
of corn flakes. Roasted corn flakes are generally used
as break-fast food with milk. Raw corn flakes are used by
the liquor manufacturing units for the manufacture of beer.
Fried corn flakes are also served as snack foods.

II. Market Potentials

At present, there are no units in the small sector

to manufacture this product. However, there are a few
units under medium sector based on imported machinery.
As it is a convenient breakfast food mainly consumed by
the upper strata of the society, hoteliers, clubs hospitals
etc. there is a good scope to develop this important
agro based food processing industry especially in the maize
growing states to cater to the increasing demand of the
metropolitan and industrialized cities. There is also a
good scope for the export of this item in the Middle-East
countries; besides in its raw form, it is used by the beer
industry.

III.Production Target (Per Annum)

Corn flakes 300 tonnes/annum.

IV. Basis and Presumption

This scheme is based upon single shift per day and
300 working days per annum.
V. Production Details & Process of Manufacture

Hybrid Yellow and white corn can be used for the

manufacture of corn flakes. The corn grains are first
cleaned and polished to remove dirt, dust and bran etc.

113
 S/6.2

Large size of grains which generally can be retained on a

No.6 mesh screen are preferred. The polish grains are
miled so as to remove the germ and bran. The broken pieces,
which are comparatively big in size are cooked under pressure
in rotary steam cooker, which generally handles a batch
of about 500 kg. at a time. The hominy is weighed into
the cooker where it is subjected to the live steam for
about 2 hours and mixed with flavouring material. The
flavouring syrup which usually contain sugar, malt, salt
and water to have specified test of the finished products.
The cooked material, i.e. grits pick up moisture which
rises to about 33%. A uniform translucency in the grits
indicates on adequate cook. The cooked material carried to
an agitattor or lump breaker and then is discharged into
a pan cooler,or may be sent to suitable drier where the
preheated air is blown to reduce the moisture content to
the desired degree of about 15% to 20%. The dried material
is kept in tempering tanks for few hours to permit the
residual moisture to become equally distributed. This is
very essential to have uniform pressing in the flakes.
It is also necessary to carefully control the moisture
contents and temperature of the cooked hominy for giving
to rollers for pressing; otherwise the uniformity in thick-
ness cannot be maintained. With more moisture, the
flakes are expected to be thick. The tempered material is
next passed through a heavy duty flaking machine (with
a pair of water cooled rolls 20 inches diameter and about
24 inches long) The flakes are then immediately transferred
to rotary or suitable ovens for roasting. The ovens are
usuallygas fired and consist of slightly conical, rotating/
cylinder with per metal screen enclosed in a well
insulated outer jacket which is exhausted to the atmosphere
for removal of moisture and fumes. In rotating, the flakes
are continuously carried forward until they are dropped
into conveyor, when the proper degree of roasting has
been accomplished. The roasted flakes are subjected to
inspection preferably on conveyors or tables. Then properly
roasted flakes are screened or graded and transferred to
the packing bins immediately because flakes are hygroscopic.
It is necessary to pack in water resistant packages generally
polythene containers or with these waxed paper.

VI. Quality Control and Standards

ISI specification is as follows: IS : 1158-1973

114
 S/6.3

VII. Land & Building

(Rs.)
a. Land 1000 sq.meter
Built-up area 600 sq.m.
Manufacturing area 500 sq.m.
Raw material storage, finished
products, office, etc. 100 sq.m.
b. Boundary Wall & gate etc.

7,92,000.00

VIII. Machinery and Equipments

No. Rs.

Baby boiler 1

Eureka Separator 1

Carter disc separator 1

Dicky Sifter 1

Blocking machine 1

Rotary steam cookers 1

Mixer for cooked corn and

favouring material 2
Agitators lump breakers 4

Coolers 2

Sweep driers 2

Tempering tanks 3

Rotary Oven (roaster) 2

Flaking machine 1

Screening and cooling

equipment 1

Packing bins 4

Elevators & conveyors

Inspection tables 4

Weighing scalers 2
115
 S/6.4
No. Rs.
Polythylene bag sealing machines 4

Laboratory equipments

Erection & electrication

charges @ 10%

Cost of belt, pulley, other tools

and fixtures etc.

Cost of office furniture etc.

9,36,360.00

IX. Fixed Capital

Land 24,000.00

Building 6,48,000.00

Machinery & equipments 9,36,360.00

16,08,360.00

X. Working Capital (per month)

Personnel (P.M.)

Administrative & Supervisor

Production Manager 1

Chemist-cum-Supervisor 1

Accountant-cum-Factory Manager 1

Purchase Manager 1

Salesman 1

Watch-man cum-peons 2
5,400.00

Technical skilled and unskilled

Skilled 2

Helpers 2

Unskilled workers 5

Perquisites at 15%

10,764.00
116
 S/6.5

XI. Raw materials (Per month)

M.T. RS.per Rs,

MT.

Maize 50
Sugar 3

Salt,Vitamins & other

Chemicals,Polythene
Polythene bags &
corrugated boxes, etc.

2,00,400.00

Utilities 12,000.00

XII. Other Contingent expenses (per Month)

Postage and Stationery

Telephone

Repairs and Maintenance

Consumable Stores

Transport charges

Publicity
Insurance

Miscellaneous expenses

8,760.00

XIII. Working Capital (per Month)

Personnel 10,764.00
Raw material & packing 1,00,400.00
Utilities 12,000.00
Other contingent expenses 8,760.00
2,31,924.00
For three months 6,95,772.00

117
 S/6.6

XIV. Total Investment Rs.

Fixed capital 16,08,360.00

Working capital for 3 months 6,95,772.00
23,04,132.00
Cost of production (per annum)

Working Capital

Depreciation on building @ 15%

Machinery 6 10%

Furniture & tools @ 20%

Interest on total capital investment @ 15%

32,59,506.00

XV. Turn over (Per annum)

Corn flakes 300 MT at Rs.l8,000/MT 54,00,000.00

Less Sales commission at 20% & other

incentives 14,400.00
39,60,000.00

XVI. Profit

Gross sales Cost of Production

39,60,000.00 - 32,59,506 = 7,00,494.00

Rate of return on total capital investment 30.40%

Say 31.00%
Return on investment 47%
Break even point 30%

VII. Machinery Suppliers

1. M/s. Lal Singh Sutdhan

Sutdhan Machinery Manufacturers
E-12, Rajnagar-7
Ghaziabad.

118
 S/6.6

XIV. Total Investment Rs.

Fixed capital 16,08,360.00

Working capital for 3 months 6,95,772.00
23,04,132.00
Cost of production (per annum)

Working Capital

Depreciation on building @ 15%

Machinery @ 10%

Furniture & tools @ 20%

Interest on total capital investment @ 15%

32,59,506.00

XV. Turn'over (Per annum)

Corn flakes 300 MT at Rs.l8,000/MT 54,00,000.00

Less Sales commission at 20% & other

incentives 14,400.00
39,60,000.00

XVI. Profit

Gross sales Cost of Production

39,60, 000.00 - 32,59,506 = 7 ,00,494.00

Rate of return on total capital investment 30 .40%

Say 31 .00%
Return on investment 47%
Break even point 30%

VII. Machinery Suppliers

M/s. Lal Singh Sutdhan

Sutdhan Machinery Manufacturers
E-12, Rajnagar-7
Ghaziabad.

118
 S/6.7

2. M/s. Gardeners Corporation

6, Doctor's Lane
Near Gole Market
New Delhi

M/s. Larson & Toubro Ltd.,

Lloyd Building,
Doughall Road
Balbard Estate,
P.B. Mo. 278
Bombay.

119
 S/7.1

S/7. Profile for a plastic button manufacturing unit

(Chemical Industry)
I. Product and its uses
Buttons are the essential requirements for all the dresses
and garments used by every society. In oden days Buttons have
been made from Wood, metal and various other conventional
ornamental materials. However, today due to certain inherent
advantages, plastic materials have completely replaced the
other conventional materials. Availability in attractive colours,
ease of fabrication to desired shape and size, light weight,
anticorrosive characteristics, have made plastic buttons a
favourite choice of garment designers. Ease in matching the
shade of buttons with the textiles, verstability in designs
to meet the requirements of chainging fashion and comparatively
lower cost have further added to the popularity of the plastic
buttons.

Plastic buttons are mainly manufactured from polyester

sheets or acrylic sheets by die punching technique and from
ureaformaldehyde moulding powder by compression moulding
technique. The present scheme envisages the manufacture of
acrylic sheet and urea formaldehyde buttons. The raw material
as well as the machines and equipment for the manufacture of
both acrylic and UF buttons are indigenously available.

II. Market Potential

With the rise in the standard of living in the country

there has been a steady growth in readymade garments industry
resulting in more demand for buttons. Establishment of a
large number of export oriented readymade garments units and
increased domestic demand of unforms .;dressses for armed forces
police, school children has further cuased additional demand of
the buttons. Buttons are also required in every home for rep-
lacement and rapie of dressesand garments. Plastic buttons
are also exported to various counties.

III. Production targets (per annum)

Qty ./yr (gross) Value (Rs.)

i), Acrylic buttons 2,88,000

ii) Urea formaldeyhe . 96,000
buttons
IV. Basis and Presumptions

1. The estimates are drawn for a production capacity

generally considered techno-economically vible for model type
of manufacturing activity.
2. The information a supplied is based on a standard type of
manufacturing activity utilising conventional techniques of
production at optimum levels of performance.

120
 S/7.2

3. Costs in respect of land and building, machinery

and equipment, raw material and the selling price of the
finished products etc.are those generally prevailing at the
time of preparation of the project profile and
may vary depending Upon various factors.

4 . Whereas some names of manufactures/suppliers of

machinery and equipment, raw materials etc. are indicated at
the end of the profile these are by no means exclusive
or exhaustive.

V. Production details and process of. manufacture

Acrylic buttons

Process for making of buttons from acrylic sheets

is essentially die punching techniques and consists of
following operations.
Cutting of acrylic sheets of rough shapes buttons
Cutting of required size and shape.
forming part of designs on the front surface
Drilling of holes
Polishing of buttons
Paking

Urea formaldehyde buttons

The moulding powder is first converted into tablets

of suitable size and weight by means of tabletting machine.
These tablets are preheated in an oven and thereafter com-
pression moulded into buttons by a semi automatic machine
The moulded buttons are buffed if necessary and then packed.

VI. Quality specification

IS-1543 (Part XIII/Sec.I) - 1977 Thermosetting buttons)

Acrylic buttons are manufactured as per prevailing

trends of the market.

VII. Land and building

Sq.met. (Retned)

Plot area 200

Built up area
Factory shed 100
Office shed 20

121
 S/7.3

VIII. Plant and machinery

a) Acrylic buttons section

Description No . Price (Rs.)

Sheet cutting machine 2
Drilling machine 2
Hole master m/c 3
Grinding m/c 1

Electric motor of 2 HP 1

b) Urea formaldehyde buttons section

Tabletting machine power operated

Semi automatic compression m o l d i n g machine
with working pressure of 50 M. Ton size of
table 16"xl8" fitted with
10 HP motor and other accessories.

Heating oven 3"x4"x4 3

Polishing barrel (wooden hexagonal shape

fitted with driving motor)

c) Dyes and moulds

d) Testing equipment weighting balanced

calipers, gauge, etc.

e) Electrication and installation @ 10%

of m/d and equipment.

f) Office equipment viz. almirah, table

charis, small size typewriter, etc. _
2,46,000

IX. Staff and labour

No. @ Rs. Rs.

1. Manager cum supervisor 1

2. Accountant cum storekeeper 1
3. Salesman 2
4. Chowkidar 1
Technical staff
1. Skilled worker 3
2. Unskilled workers 3
7,360
P r e r e q u i s i t e s @ 15% of salary
8,880

122
 S/7.4

X. Raw M a t e r i a l s (per month) Rs.

1. P e a r l i s e d a c r y l i c 540 k g .
2. Urea formaldehyde moulding powder
1 MT @ 21 kg.
3. Card board boxes 7500 p c .
4. Colour, dyes, e t c .

XI. Utilities (per month) 50,400

1. Power
2. Water
1,920

XII. Other expenses (Per month)

Rent
Postage and stationery
Consumable stores
Repairs and maintenance
Transport charges
Misc. exp.
Advertisment and publicity
4,800

XIII. Working capital (per month)

Personnel 8,800
Raw materials 50,400
Utilities 1,920
Contingent Exp. 4,800
65,920
Total working capital for 3 months 1,98,000

XIV. Total c a p i t a l investment

Fixed capital 2,46, 000

Working capital 1,97, 760
4,44, 000

XV. Cost of production (per year)

Total recurring cost

Dep.on plant & Mach. @ 10%
Dep. on dies & moulds @ 25%
Dep. on office equipment @ 20%
Interest on capital @ 15%
8,36,560

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 S/7.5

XVI. Total s a l e s (Per annum)

Acrylic b u t t o n s 288000 g r o s s
urea formaldehyde bottons 96000 g r o s s
Acrlic sheet scrap 1200 kg .
10,42, 560

XVII. P r o f i t a b i l i t y (per annum)

(before taxation) 1,56, 000

Rate of r e t u r n 35.13%
% P r o f i t on s a l e s 14.96%
B.E.P. 46.0%

XVIII. Address of s u p p l i e r s of p l a n t and machinery

a) Acrylic sheet button P l a n t .

1. M/s Bhawan Engg. works

Regujay P l o t
Jamnagar, Gujarat.
2. M/s Associated India Machine Tools

3. M/s Shriam Bldg. Mawaharnagar

Near University Campus
Delhi -7 .

4. M/s Bhavana Engineers

14 , Digvijay P i l o t
Jamnagar, Gujarat.

5. M/s Bharat Engineering

5, Digvijay Plot
Jamnagar, Gujarat

6. Ms Dodia Engg. Works

Kumbharwasda, Behind Arya Samaj
o u t s i d e Khalia Gate
Jamnagar, Gujatat.
7. Ms Rajendra Eng. Works
5, Digvijay Plot
jamnagar, Gujarat.

b) Urea formaldeyhde button machine

1. M/s KB Hydraulic eng works
10/65 Nissan Huts
NIT, Faridabad.
2. M/s Presswell Industries
BP 24 .10 Gandhi Chowk
Faridabad.
3. M/s Plastic machine Mfg.Co
Chiriwal lane and gross LG Road
Gurgaon
Bombay-62 (East)

124
 S/7.6

Address of raw material suppliers

1. M/s Nuchem P l a s t i c s Ltd.

NIT Fardiabad.
2. M/s Indian P l a s t i c Ltd
Chemical Divsn. Pllshan Bidge
K a n d i v i l l i Bombay 67.
3. M/s Rekha I n d s .
3 00 Okhla Ind. Estate
New Delhi.
4. M/s Bharat P l a s t i c s
MP Shah Munci9pal Ind. Estate
Jamnagar .
5. M/s New Plant industires.
Shanker tekri udhyog Nagar
Samnagar.

6. M/s Pearl Plasic Mfg.Co.

MP Shah Muncipal Industriels Estate
Jamangar.

7. M/s Plecto Plast

MP Shah Municipal Ind. Estate
Jamnagar

8. M/S Sugar Industies

M.P. I n d u s t r i e s , MP Shah Municipal Estate
Jamnagar

9. M/s Panama p l a s t i c Industires

MP Shah Muncipal I n d u s t r e a l E s t a t e
Jamnagar.

125
 S/8.1

S/8. Profile for a Nylon Zip Fasteners Manufacturing Unit

(Chemical Industry)

I. Product and its Uses

Polyster/Nylon Zip fasteners are used extensively

in readymade garments, travel requisites, novelties, bags etc.
Due to the fact that export of readymade garments, leather
and plastic travel requisites etc., are increasing every year,
the demand of zip fasteners is also likely to increase.

II. Market Potential

The actual demand of nylon zips is estimated at

125 lakhs meters while the present production capacity is
reported to be 60,00,000 meters per annum. There exists
substantial demand of such zips if improved quality products
are made equivalent to popular important brands:

III.Production Target(P.A.)

i) Quantity 6,00,000 meters

ii) Value Rs. 61,20,000.00

IV. Basis and Presumptions

1. The estimates are drawn for a production capacity
generally considered techno economically viable for
model type of manufacturing activity.

2. The information supplied is based on a standard

type of manufacturing activity utilising conventional
techniques of production at optimum levels of performance.
3. The costs in respect of land and building, machinery and
equipment, raw materials and the selling prices of the
finished products etc. are those generally prevailing at
the time of preparation of the project profiles and may
vary depending upon various factors.

4. Whereas some names of manufacturers/suppliers of

machinery and equipment, raw materials etc. are
indicated at the end of profile, these are by no means
exclusive or exhaustive.

126
 S/8.2

V. Production Details and Process of Manufacture

Polyster wire or round polyamide filaments are made

into a continuous row of zip fasteners links in a
coiling machine. The zip fastener linked jointly to a
double coil are simultaneously sewed on the right hand
and left hand tape of the fastener halves in a sewing
machine. Slider, top stop and bottom stop are fitted
on the zips with the help of suitable machines. Sequence
of operations is as under:-

1. Production of double coil from plastic wire

2. Sewing of double coil on to tape

3. Dyeing and Finishing

4. Automatic gapping

5. Automatic gap cleaning

6. Semi-automatic attaching of bottom stop

7. Semi-Automatic slider attaching

8. Semi-automatic Double top stop

9. Cut to length

10. Inspect and count.

VI. Quality Control and Standards

There are no Indian Standard Institute's standard

specification laid down for quality of nylon zip fasteners,
however, customer acceptance is of prime importance.

VII.Land and Buildings

Sq.m. Rs.(p.m.)

Plot area 250

covered area 200

127
 S/8.3

VIII. Machinery and Equipment

No. Rs,

Coiling machine size 4 1

Coiling machine size 6 1

High Speed sewing machine size 4 1

High speed sewing machine size 6 1

Automatic Gapping machine each

for size 4 and 6 1
Automatic gap cleaning machine
each for size 4 and 6 1
Semi-automatic bottom stop machine
each for size 4 and 6 1
Semi-automatic top stop machine
each for size 4 and 6 1

Magnetic cutter for both sizes 1

Installation Electrification
@10% of cost
Office equipment workshop furniture

IX. Staff and Labour(P.M.)

1. Manager 1

2. Engineer/Foreman 2

3. Steno/Typist 1

4. Accountant 1

5. Clerk 1

6. Peon 2
7. Skilled workers 6
8. Semi-skilled workers 25
Perquisites @ 15% of salaries
29,160.00

128
 S/8.4

X. Raw Materials(P.M.) (Rs.)

1. Nylon Polyester monofilament 400 kgs
2. Cotton tape 1,25,000 meters

3. Components like top stop 3,40,000

bottom stop slider etc.

2,95,800.00

XI. Utilities(p.m.)
Power
4,800.00
Water

XII. Other Expenses(p.m.)

Maintenance and repairs

Printing, postage and stationery

Advertisement and publicity

Packing expenses

Taxes and Insurance

Rent

Miscellaneous

13,950.00

XIII. Working Capital(p.m.) 3,43,710.00

Working capital for 3 months(say) 10,31,000.00

XIV. Total Capital Investment

Fixed Capital

Working capital
Total 36,23,160.00

129
 S/8.5

XV. Cost of Production(per year) (Rs.)

Total recurring expenditure

Dep. on machinery @ 10%

Dep. on office equipment @ 20%

Invest on investment @ 15%

49,33,080.00

XVI. Total Sales(per year)

6,00,000 meters zip fastners
@ 10.20 per meter 61 , 2 0 , 0 0 0 . 00

XVII. Profitability (p.a.) 1 1 , 8 6 , 9 2 0 . 00

% Profit on sales 19 . 3 %

% Return on capital 32 .8%

XVIII.Break Even Point 47 .8%

XIX. Machinery suppliers

1. Dr. Karl F. Negele, Feinmashinenbau
GMBH U CO Osumstri 15 7000 Stuttgart
70 (Hohenheimi) Postfach 720360
West Germany.

2. Taurus 80 Via A.D. Oria 10

10073 Circle Torino Italy

XX. Raw Materials Suppliers(Nylon)

1. M/s. Gareware(P) Ltd.

906, Akashdeep Bldg.
26-A Barakhamba Road
New Delhi-1.

Polyester Monofilament
M/s. Hoechst A.G. Post Fach 800320
62 30 F-ankfurt W. Germany
M/s. Bayer AG, Dayer Work 5090 Leverkusen(WG).

130
 S/9.1

S/9 Profile for a Cotton Vest Knitted Manufacturing Unit

(Hosiery Industry)

I.Product and its uses

A knitted vest is easy and comfortable to wear and

is acceptable to all because of its resultant electicity and
pliability. Moreover all the raw materials involved in its
manufacture are indigenously available and is easily managable
with a little technical knowledge.

II.Market Potential

The cotton vests knitted are having very good market

all over the country because vests are cheaper and ready to
wear. There demand is also increasing in foreign countries.
There is good scope for this industries in small scale sector.
Further this is also reserved to be developed in the small
scale industry sector.

III. Basis & Presumptions

The machinery and equipments are of a particular make

and are available at Ludhiana.

The cost indicated against the raw material, utilities

and other expenditure are approximate and are on the basis of
local market.

IV. Production Target(per annum)

(a) Quantity(dozens) '

(b) Value Rs. 9,45,000.00

V. Process of Manufacture
Bleached cotton fabric of finder count is purchased
and is spread on a cutting table and with the help of hand
scissors, it is cut into requisite sizes of vests. These cut
pieces are joined together to give the appropriate shape with
the help of overlook and chain stitching machines. Thereafter,
these are pressed and packed in cardboard boxes and are
ready for marketing.

131
 S/9.2
VI. Quality Control Standards

To keep quality control of the products, attention

must be given to purchase uniform stuff and strict checking
is essential in every stage of production. For standard
products IS-4964(P-II) 1975 and IS:4965 may be followed.

VII. Land and Building

(a) Covered area 70 sq.mtr.

(b) Uncovered area 30 sq.mtr.

(c) Total area 100 sq.mtr.

(d) Rented value

VIII. Plant and Machinery

SL.NO. DESCRIPTION Ind./lmp. Qty Value(Rs.)

1. 3 thread overlook sewing

machine Ind. 3
2. Single chain stitch machine do 1

3. Double chain stitch machine do 1

4. Flatlock stitching machine do 1

5. Dug Press with stell plates

2 4 doz. capacity do 1

6. Electric Iron(16 lbs.) do 2

7. Electric motor 2HP with

fittings do 1

8. Scissors(Assorted) do 8

9. Line shaft,block ball

bearings, socket, rails,belting
pulleys, transmitters with
paddles etc. do
10. Small tools and bobbin
stands etc. do
11. Tables for fixing machines
Ironing/cutting,wooden stools
for works,storage racks and
office furniture do
12. Erection of machinery and
electrical installation do
34,470.00
132
 S/9.3

IX. Raw material(per month) (Rs.)

1. Bleached cotton knitted

fabric of 3 4 count Ind. 875 kg.
2. Sewing thread do 23 tonnes
3. Bleached 20s cotton yarn do 35 kg.
4. Packing boxes and other
packing materials do 1759 No.
5. Other consumable stores
like needless, beltings,
lubricants, lables and
sizes.

TOTAL Rs.51,360.00

X. Staff and Labour (Per month)

(a) Administrative & Supervisory

1. Supervisor 1
2. Salesman 1
3. Clerk/Typist 1
4. Accountant(part-time) 1
5. Peon/Chowkidar 1
(b) Technical(Skilled/Unskilled)

1. Cutter 1

2. Mechanic(part-time) 1

3. Machine operators 6

4. Worker for ironing 1

5. Worker for checking, mending and

other works

10,920.00

Plus perquisites 15% of salaries

12,558.00

133
 S/9.4

XI. Utilities

Electric and water charges

XII. Other expenses(per month)

1. Rent of building
2. Travelling, delivery, transport
3. Office Staionery, postage and Printing
4. Sales promotion
5. Repairs maintenance
6. Taxes, insurance
7. Misc. expenditure

Rs. 2,760.00

XIII.Working Capital for one month

(a) Raw material

(b) Salaries and wages

(c) Utilities

(d) Other expenses

R s . 67,038.00

XIV. Total Capital Investment

1. Plant and Machinery

2. Working capital for 3 months

Rs.2,35,584.00

XV. Cost of Production(per annum)

(a) Total recurring cost

(b) Depreciation on machinery etc. @10%

(c) Interest on total investment @ 15%

Rs.8,43,240.00

134
 S/9.5

XVI. Sales Proceeds(per annum)

Sale of cotton vests 10,500 D o z . 9,45,000.00

8,43,240.00
Profit (before income tax) (-) 1,01,760.00

XVII.Profitability

(a) Annual profit Rs. 1,01,760

(b) Percentage of Profit on sale = 10.7%

(c) Percentage of profit on investment= 43.2%

XVIII. Break-Even Analysis

(In percentage) = 54%

XIX. Manufactures/Suppliers of Stitching Machines

1. M / s . Swarup Mechanical Works, Industrial Area 'B',Ludhiana

2. M / s . Raj Nirmal Engineering Works, Industrial Area 'A',

Ludhiana.

3. M / s . Jain Overlook Machinery Syndicate, Chawal Bazar,

Ludhiana.

XX. Suppliers of Bleached Knitted Cloth

1. M / s . K.A.K. Knitting Co., Kuppana Chettiar Street,Tirupur.

2. M / s . Okey Textiles, 94(B) 1, Laxminagar, Main Road, Tirupur

3. M / s . Bengal Hosiery Machinery Concern, 361 B, Rabindra

Sarani, Calcutta-6.
4. M / s . Bombay Textiles, 58/1/A, B.T.Road, Calcutta-2

5. M / s . Saraf Hosiery Mills, Desh Bandhu Gupta Road, Karol

Bagh, New Delhi.
6. M / s . Popular Hosiery Mills, Near Model Basti, New Delhi-6.

135
 S/10.1

S/10. Profile for a Steel Trunk Manufacturing Unit

(Mechanical Engg.Industry)

(A) Introduction:

Steel Trunks are widely used as household articles.

Steel trunks are more reliable and cheaper in comparison to
other packing devices. Because of its convenience of transport,
this is most popular packing devices. The colour and designs
are manufactured according to taste of different classes.

(B) Market Potential:

The item has got popular demand and the people

are becoming mobile more and more with the economic growth.
Necessity of having one or two trunks in small family has
become essential now-a-days. Keeping these points in view,
it can be said that steel trunks have very good market potential,

(C) Production Target:

It is proposed to manufacture 6000 boxes per

annum. The varieties of size and design will be dependent
on the type of market to be catered to. These things will
have to be decided according to different regions and loca-
lities and the population whose demand are to be met.

(D) Production Details and Process of Manufacture:

To keep the cost of investment as low as possible,

it is better to use non-power machine. First the sheets are
to be cut to size. Then these are to be bent to form and
ends are to be folded. The sheets for different walls are to
be fitted together by menas of rivetting. The trunks are
then painted as per requirement of consumer preference.

(E) Quality Control and Standard:

Since the main attraction for this product is

strength and durability in comparison to other packing devices,
it is essential to pay particular attention to the different

136
 S/10.2

raw materials and components. Steel sheets used for

manufacture must be free from rust and polished carefully
so that there may not be any scope of rust formation prior
to painting and rivets and other fitments are also to be
inspected thoroughly before fitting. Since trunks are
required for safety and security locking devices are to be
carefully selected and the necessary saftey is ensured.

I. Land and Building (Rs.)

1. Covered area 150 sq.mt rented p.m. 1,800.00

II. Machinery and Equipment

No.
1. Treadly guillotine
shearing machine
36" size steel body 1

2. Universal swaging and bending

machine 1
3. Trunk folding machine 1

4. Sheet metal tools

5. Installation

TOTAL 22,200.00

Office furniture 2,400.00

24,600.00

III. Raw Material(Per Month)

1. Milled steel G.I. sheet 22 to 24 SWG

2 tons
2. B.P. steel 22 to 24 SWG 1 ton

3. Fittings, revets, paints etc.

TOTAL 5,100.00

137
 S/10.3
(Rs.)
IV. Staff and Labour (Per Month)
No.
1. Manager-cum-Accountant 1

2. Skilled workers 3

3. Unskilled workers 2

4. Peon-cum-chowkidar 1

TOTAL 4,560.00

V. Other Expenses(Per Month)

1. Rent

2. Electricity and water charges

3. Stationery and postage

4. Miscellaneous expenses(travelling,
insurance etc.)

TOTAL 2,52 0.00

VI. Working Capital(per month)

1. Raw material

2. Staff and labour

3. Other expenses

TOTAL 5 8,680.00

Working capital for 3 months: 1,76,040.00

138
 S/10.4

VII. Total Capital Investment (Rs.)

1. Machinery and equipment

2. Office furniture

3. Working capital for 3 months

TOTAL 2,00,640.00

VIII. Cost of Production(per month)

1. Depn. ohm/c and equipment @ 10%

per annum

2. Depn. on furniture @ 20% p.a.

3. Intt. on capital investment

@ 15% per annum
4. Working capital per month

TOTAL 61,412.40

Say Rs. 61,500.00

IX. Total Sale(per month)

1. By sale of 500 boxes(trunks) at

an average rate of Rs. 129.8 64,800.00

X. Profitability(per month)

1. Total sale 64,800.00

2. Cost of production 61,500.00
 S/10.5

XI. Break even Analysis

Annual fixed cost x 100

B.E.P.

Fiexed Cost + Profit(per annum)

Fixed Cost(per annum)

1. Rent

2. Depreciation

3. Interest

4. 40% of salaries

5. 40% of other expenses

TOTAL Rs. 77,846

77,846
B.E.P. = = 66.3%

77,846 + 39,600

XII. Addresses of Machinery Suppliers

1. International Machine Tools Corporation, 5, Navamurthi,

G.N.Vaidya Marg(Bank Street) , P.O.Box No.799, Behind
State Bank, Fort, Bombay.
2. M/s. Batliboi & Co., (P) Ltd., 26, R.N.Mukherji Road,
Calcutta.
3. M/s. Industrial Tools Syndicate 78/39,Netaji Subhash
Road, P.B.No. 110007, Bombay-20.
4. M/s. Manak Lal & Sons, 119 Narayan Dhuru Street,
Bombay.
5. M/s. Batliboi & Co.(P) Ltd., 98-A Armenian Street,
Madras.

140
 S/ll.l

S/11. Profile for an Umberalla Manufacturing Unit

(Mechanical Engineering Industry)

I. Product and Its Uses

(a) There are different types of umbrellas used by Gents,

Ladies and children. Umbrellas are extensively used in
our country because of the different climatic
conditions so as to protect against the sun and rain.

Market Potential

(b) The demand for umbrellas depends upon climatic conditions,

increase in population, general increase in income,
change in social outlook and customs and export possi-
bilities of umbrellas.

Delhi is the main market for the umbrellas in Northern India.

According to the market reports, the total off-take from
Delhi market is estimated to be worth Rs. 1 crore. 10% of
the total off-take is consumed in Delhi itself keeping in view
the above mentioned factors, the demand for umbrellas is
expected to increase by 7% to 10% during the next five
years.

II. Product Details and Process of Manufacturing

The product is based on IS-2920-1961. The various parts

are produced outside. The cloth is cut to the size by using
a profile and stitched on sewing machines. All parts like
Ribs, Handles, Cloth, Brass-ring, M.S. Pipes etc. are
assembled together.

III. Production Target(per annum)

This scheme envisages for the manufacture of 15000

umbrellas (worth Rs. 6 lakhs) per annum on single shift
basis.

IV. Inspection and Quality Control

This scheme envisages for the manufacture of umbrellas

based on IS-2920-1961.

141
 S/11.2

V. Financial Aspects (Rs.

1. Fixed Capital

(a)Land and Building

Total covered area 200 sq.mtr. rent

(b)Machinery and equipment:

1. Sewing machine - 4 Nos.

2. Hand tools

3 . Testing Equipment
4. Electrification and ins-
tallation charges
@ 10% on the total cost
of the machine

5. Work table, tools and office

furniture.
30,000.00

2. Working Capital(per month)

(i)Personnel :

1. Supervisor 1 No.

2. Clerk 1 No,

3. Chowkidar 1 No,

(ii)Technical-Skilled and Unskilled:

1. Skilled worker 3 "

2. Semi skilled workers 8 "

Cost forwards labour benefit

10%
TOTAL 10,164.00

142
 S/11.3

iii) Raw Material(per month)

Particular Qty. Rate Value(Rs.)

1. Cloth indigeneous 1.875 mtrs.
2. Umbrellas rib(painted)
indigeneous 1000 N o s .
3. Brass ring Indigeneous 1,250 Nos .
4. Seamless M.S.Pipe
(Painted) Indigeneous 1,250 N o s .
5. Plastic handles Indigeneous 1,250 N o s .
6. Spring and clips Indigeneous 1,250 N o s .
7. Slotted cap pipe " 1,250 N o s .
8. Thread spools " 250 Rolls
9. Elastic tapes " 200 M t r s .
10. Runners " 1,250 Nos .

39,570(approx)

Overhead Charges(Per Month)

(Other Expenses) Rs .
1. Rent

2. Postage and Stationery

3. Power and Water

4. Consumable stores

5. Transport charges

6. Sales expenses

7. Advertisement

8. Misc.

5,880.00

143
 S/11.4

VII. Total Working Capital(per month)

1. Personnel 10,164.00

2. Raw materials 39,570.00

3. Overhead charges(other expenses 5,880.00

55,614.00

VIII. Total Working Capital(for 3 months)

Rs. 55614 x 3 Rs. 1,66,842.00

IX. Total Capital Investment

1. Fixed capital 32,400.00

2. Working capital for 3 months 1,66,842.00

1,99,242.00

Cost of Production(per month)

1. Total incurring cost per month

2. Dep. on machinery and equipment @ 10%

3. Interest on investment @15%

58,314.00

XI. Turnover (per month)

1250 umbrellas @ Rs.50.00 63,000.00

XII. profit(Before Taxation)

Rs. 4,686.00

XIII. Percentage Profit on Sale

4,686 x 100
= = 7.4%
63,000

144
 S/11.5

XIv. Rate of Return on Investment

4,686 x 12 x 100
28.2%
1,99,242

Break Even Analysis

Fixed cost x 100
Fixed Cost =
Fixed Cost + profit

1. Rent

2. Interest

3. Depreciation

4. 40% salary

5. 40% other expenditure

TOTAL 10,557.00
10,557 x 100
B.E.P. = = 69%
10,557 + 4,686

XVI. Address of Suppliers of Sewing Machines Machinery

1. M/s. Sansar Sewing Machine, G.T. Road Shahdara, Delhi.

2. M/s. Jay Engg. Works, 183, Prince Anwar Shah Road,

Calcutta.

Components
M/s. Rita Sewing Machine Industry, Industrial
Area, Ludhiana.

Umbrellas Ribs
1. M/s. Jayshree Umbrellas Co. Opp.C.C.B.
Fency Bazar, Gauhati, Assam.
2. M/s. Mohendra Dutta & Sons, 49 B, Mahatma
Gandhi Road, Calcutta-7.

145
 S/12.1

S /12. Profile for an Umbrella Ribs & Fittings Manufacturing

Unit (Mechanical Engineering Industry.)

I. Product and i t s uses

Umbrella ribs are important components of the umbrella,

on which is stitched the cloth. Thus the cloth is held in
position by the r i b s . The other important components of the
umbrella are, runner, notch cap, ferrule e t c . There are various
designs and sizes of umbrella ribs depending upon t h e i r use.
Many designs of fancy umbrellas have come in the market for
use by woman and children in addition to the commonly used
umbrella.

II. Market Potential

The most common use for the umbrella is for protection

against rain and thus the maximum demand is in the rainy
season. The old men, women and children also use umbrella
for protection from sun in the hot summer. Due to the rising
living standards of the people, the demand for umbrellas as
well as umbrella ribs and components are increasing steadily.
It has good export potential too.
I I I . Production Targets (Per annum)
Gross
1. Ribs 22,800
2. Flenes 1,200
3. Runners 3,000
4. Notches 3,000
5. Caps 3,000
6. Ferrules 3,000

IV. Basis and Presumptions

1. The Project profile has been prepared on the basis of

single shift .of 8 h r s . and 75% efficiency.

2. The rental value of the workshop shed has been taken

at Rs 12/- per sq.meter.

3. The costs of machinery and equipment as indicated in

the profile refer to a particular make and the prices
are approximated as ruling at the time of preparation
of t h i s report.

4. The provisions made in respect of raw materials,

personnel, u t i l i t i e s and overheads e t c . , have been
pro viced at the prevailing rates and are approximate only.

5. The rate of interest has been taken on the basis of

15% p e r annum.

146
 S/12.2

6. The break even point has been worked out on the basis
of full capacity u t i l i s a t i o n .

V. Production details and process of manufacture

Ribs-Wire in coil is fed to wire straightening and

cutting machine where wire is cut to required sized pieces.
Three points of main rib cut pieces, one of middle, other
at both the ends are heated for annealing. These are fed
on four operation presses where round head and flattening
is done at one end. In the middle and at the other end it
is flattened. Then the holes are punched at both end
flattened places.

Annealed ends of cut pieces of stay ribs are flattened

at both ends and one end is forked. Holes at both ends are
punched. Flexes, ribs are prepared by flattened round wire
and cutting in required size and punching holes at both the
ends. Then they are assembled with main ribs by r i v e t t i n g . .
The other parts of sheet metal are made out of sheets, by
shear ing, punching, drawing on presses and made to the size
and shape as required. Runners are assembled by i t s different
punched and spinned components. Ribs are cleaned in acid and
washed in water, and then painted by dipping and then baked
in oven. The electroplating on fancy ribs may either be got
done from outside on job basis or plant may be installed if
sufficient regular demand is there.

VI. Inspection and Quality Control

The ribs should collapse around the handle stick when

it is released. Even after opening and closing umbrellas, the
ribs should maintain proper tension . The paint should not be
peeled off . The inspection and quality control should be
maintained as per the following ISI specification :
ISI 2,917 - 1964 .

VII. Land & Building

Covered area 600 sq.meters Rs

per sq . meter rented

VIII Machinery & Equipments

1. Wire flattening and cutting

machine complete with electric
motor and starter
2. Wire flattening and cutting
machine complete with electric 1
motor and starter

147
 S/12.3

3. Four operation power press complete

with e l e c t r i c motor and s t a r t e r 1

4. Power press 5 tons complete with

e l e c t r i c motor and s t a r t e r 2

5. Power press 3 MT with motor e t c . 2

6. Ply Press No.3 8

7. Ply press No.4 8

8. Ply press No.5 8

9. Centre lathe 1,800 MM bed complete
with a l l standard accessories
and motor 1

10. Piller drill 40 MM with motor 1

11. Bench drill 12 MM cap motorised 1

12 . Double ended bench grinder 250

MM wheel, motorised 1

13. Pickling cleaning and r u s t

proofing tanks one s e t

14 . Enamelling and p a i n t i n g with

spray painting equipment e t c . one s e t

15. E l e c t r i c stoving chamber

1200 x 1200 x 1800 mm 1

16 . Erection charges @ 10%

17. Dies t o o l , j i g s and f i x t u r e s

and other equipment

18. Office equipment and furniture

4,72,800.00

148
 S/12.4

IX. Staff and Labour (per month)

-X @ Rs pm Nos Rs
1. Manager 1
2. Foreman 2
3. S k i l l e d worker 10
4. S e m i - s k i l l e d workers 20
5. Unskilled workers 20
6 . Accountant 1
7. Clerk - c u m - t y p i s t 1
8. Peon & Chowkidar 2

Labour b e n e f i t s 20% of s a l a r y
47,352 .00
Say 47,400.00
X. Raw m a t e r i a l s (per month)

1. Spring s t e e l wire 4 , 5 , M.T. per ton

2. M.S. Square wire & round 2 M.T.

3. M.S. Sheet c u t t i n g s of d i f f e r e n t gauge

for f e r r u l e s 2.5 MT

4. Brass sheet c u t t i n g s 1.5 mm thick

L.S. for notches

XI. Utilities (per month)

1. Water
2. Power
1,800.00

XII. • Other expenses (per month)

1. Rent
2. Consumable
3. Oil l u b r i c a n t s
4. Cartage and f r e i g h t
5. Repairs and maintenance of machine
6. Rapir/replacement of d i e s
7. Packing and forwarding
8. Advertisement and publicity
9. Travelling expenses
10. Stationery and postage
11. Mis/unforseen expenses
22,800.00

149
 S/12.5

XIII. Working c a p i t a l (per month)

1. Staff and labour 47,400.00

2. Raw m a t e r i a l s 1,44,000.00
3. Utilities 1,800.00
4. Other expenses 22,880.00
Working c a p i t a l for 3 months 2,16,000 .00

216,000 x 3 = Rs 6,48,000

XIV. Total C a p i t a l investment

1. Machinery & Equipments 4,72,800.00

2. Working c a p i t a l f o r 3 months 6,48,000.00

11,20,800 .00

XV. Cost of Production (per annum)

1. Staff and labour 5,6 8,800.00

2. Raw materials 17,28,000.00
3. Utilities 21,600.00
4. Other exp. 2,73,600.00
5. Dep. of machinery @ 10% 40,680.00
6. Dep. or dies tools and office
equipments @ 20% 13,200.00
7. Interest on total capital investment
Rs 11,20,800 @ 15% 1,68,120.00

28,14,000.00

XVI. Total s a l e s (per annum)

1. Ribs 22,800 g r o s s / 8 4
2. Fiexus r i b s 1,200 gross/600
3. Runners 3,000 g r o s s / 7 2
4. Notches & Caps 3,000 g r o s s / 6 0
5. F e r r u l e s 3,000 g r o s s / 3 6
6. Sale of s c r a p 6 M.T. scraps/2400

31,53,600.00

XVII. Total Profit (per annum)

Total Profit = Total sales = Cost of production
31,53,600 = 28,14,000 = 3,39,600
Percentage of p r o f i t on sales :
Profit x 100 3,39,600 x 100
•• . , • -~—' r AA = 10.8% a p p r o x .
Total s a l e s 31,53,600
Percentage of p r o f i t on c a p i t a l investment
Profit x 100 3,39,600 x 100
Total c a p i t a l i n v e s t . 11,20,800 *
150
 S/12.6

XVIII. Break Even Analysis

Fixed c o s t
1. Rent 86,4 00.00
2. 40% s t a f f s a l a r i e s and wages 2,27,520.00
3. 40% u t i l i t i e s 8,640.00
4. 40% o t h e r exp . 74,880.00
5. Dep . on machinery and equipment 53,880.00
6. Interest 1,68,120.00

6,19,440 .00

Say Rs 6,19,500 .00

Break even p o i n t a n a l y s i s

B.E.P

Annual fixed c o s t x 100

Annual f i x e d c o s t + Annual p r o f i t
6,19,500 x 100 _ ..
6 4 . 6 %
3,39,600 =

XIX Name and addresses of suppliers of machinery and equipment

1. M/s Wire Engg.26, Serpantine Street,Diamond Town,

Bangalore.
2. M/s Machines, V-3, 509/B, Neelkanth, 98, Marine
Drive, near Flyover Bridge, Bombay.
3. M/s A.J.Mehta & Co., 142, Kapadia Building,
Modi Street, Bombay-400001 .
4. M/s Ashoka Machine Tools, A-15, Mayapuri Indl.Area
New Delhi .
5. M/s S.D. Nanda, S.B. Road, Delhi.
6. M/s T.A. Engineers,Janta Nagar, Ludhiana.

XX. Name and address of raw materials suppliers

1. M/s N. Sarkar & Sons, P-4, New Howarah Bridge,
Approach Road, No.13, Calcutta.

2. M/s Steel Corporation, 23, Kumtharwada, 2nd Lane

Bombay 400004 .

151
 S/13.1

S/13. Profile for a Paper Pins Manufacturing Unit

(Mechanical Engg. Industry)
Product and its uses

Paper pins are widely used for pinning paper sets in office,
schools, commercial organisations etc. The paper pin is made
of mild steel are of gauge, size 20-22 swg. It is pointed
at the end and the other end is round head. The pins are
tinned/plated so as to make them resistant to rusting.

II.Market Potential

The paper pins are used practically in every office, industrial

and business establishments. These establishments are increasing
every year a number. The paper pins can be supplied to these
establishments directly or through stationery items dealers. If
supplied directly to these establishments by intensive sales
efforts, there can be good demand, as these establishments will
get a cheaper rate than at which rate they purchase from dealers

III.Production Target

It is proposed to manufacture 1.2 M. Ton of paper pins per month.

There are different packings in the market like 100 pins strip,
2 5 pins. Packet, 200 gms and 400 gms card board boxes cartoons.
For calculation purpose it is proposed that the unit will
produce monthly 3000 cartoons of 400 gms. gross weight. As the
weight of the cartoon itself is about 55 to 60 gms. It is
estimated that the net weight of paper pins will be about 330
to 3 35 gms, in the cartoon.

IV.Production Details and Process of Manufacture

Hard drawn bright wire of suitable gauge is led to automatic

paper pin manufacturing machine where the paper pins are formed.
Thereafter these paper pins are pickled and cleaned with water
in a plastic containers to clean the surface. Then they are
plated in the plating equipment using suitable tin salts. The
plated paper pins are dried in the driver drum. As this is
a small unit, it is presumed that the proprietor himself will
supervise the unit and hence a supervisor is not provided
separately.

152
 S/13.2

V. Inspection and Quality Control

The pins shall have a well formed round head and sharp
point. The pins shall be sufficiently strong and shall
not bend in use. The pins shall be clean and bright. In
this profile Nickel plating for pins is provided.

VI. Land and Buildings

Covered area 75 sq. Mtrs.(rented) Rs. 750.00

VII. Machinery and Equipment

Nos. Rs.
1. Automatic paper pins machines
200 to 250 pieces/Min 4
2. Plating barrel with 12 v. Dyanamo
set and other accessories
including initial plating salts 1

3. Drier Drum with motor

4. DE Grinder 8" dia. wheel wheel

size.

5. Installation and Electrification

6. Office Equipment

TOTAL 1,19,400.00

VIII. Raw Material (Per Month)

H B wire 21 to 23 Gauge 12 Ton Rs. 12,200.00

IX. Staff & Labour(Per Month)

Nos. Rs.

1. Manager cum foreman 1

2. Skilled Worker
3. Un-skilled 2

4. Watchman 1

TOTAL 2,950.00

153
 S/13.3

Other expenses(Per Month)

Rs.
1. Rent

2. Electricity and water

3. Packing cost

4. Sales Expenses

5. Stationery, postage and Misc. expenses

6. Plating chemicals

TOTAL 5,040.00

XI. Working Capital(Per Month)

1. Raw materials 12,200.00

2. Staff and labour 2,950.00
3. Other expenses 5,040.00

TOTAL 20,700.00

XII. Total Capital Investment

1. Machinery and equipment 1,19,400.00

2. Working capital for 3 months 62,100.00

TOTAL 1,81,500.00

XIII. Manufacturing Cast(Per Month)

1. Raw material

2. Staff and labour

3, Other expenses

4 Depreciation on machinery
and equipments @ 10% p.a.
Interest on Capital @ 1015%
P.A. TOTAL 23,868.00
154
 S/13.4

XIV. Total Sales (Per Month)

By sale of paper pins 1176 kg

@ Rs.25.20 per kg.(wastage @2%) Rs. 29,635.00

XV. Total Profit(Per Month)

Profit = Total Sales - Manufacturing cost

= Rs. 5,766.00

Annual profit = 4,800 x 12 = Rs. 69,172

(a) Profit per month 100

Sales per month

= 4,800 x 100 =
24,696 19.05

(b) Percentage of profit on capital investment

= Annual Profit x 100 = 69,192 x 100

capital investment
1,81,500

XVI. Break Even Analysis.

B.E.P. = Annual Fixed Cost

Annual fixed cost + Annual Point

Fixed Cost(per month) Rs.

1. Rent
2. 40% of staff and labour
3. 40% of other charges excluding rent

4. Depreciation on machinery are

equipment

5. Interest on capital

TOTAL 8,82 0.0 0

155
Annual fixed cost = 8,820 x 12 = 1,05,840.00
1,05,840.00 x 100
B.E.P. =

1,05,840.00 + 69,192.00

60%
 S/14.1

S/14. Profile for a Transistor Radios(Low Cost) Manufacturing Unit

(Electronic Industry)

I. Products and Its Uses

Consumer electronic products such as radio, television,

card radio etc. are backbone of electronic industry
even in the developed countries. The demand for radio
recievers, used for educational, entertainment and
information purposes, has increased considerably during
the last two decades. The main factors governing this
increase in demand are, a rise in per capital income,
massive electrification programme of rural* and urban
areas, opening of additional broadcasting stations,
introduction of diversified programmes and availability
of radio receivers at a price acceptable to the common
man etc.

II. Market Potential

A large number of units in the small scale sector are

assembling radio receivers and account for a sizeable
fraction i.e. nearly 75% of the total production. The
manufacture of radio receivers in the year 1986-87 is
expected to be over 12 million nos. as per the Seventh
Five Year Plan document. Domestic radio receivers have
large export potential as well.

III. Production Target(per annum)

(a) Quantity 12,000 sets

(b) Value 20,16,000.00

IV. Basis and Presumptions

1. The basis for the calculation of the production capacity
is normally on single shift basis on 75% efficiency.

2. Non-refundable deposits, project preparation costs etc.

where ever needed, may be considered under preoperative
expenses.
3. The rate of interest in the scheme has been taken
on the basis of 15% on an average. However, this figure
is likely to vary depending on the financial outlay
of the project as well as location of unit.

157
 S/14.2

4. The break even point in the scheme has been

calculated on the full capacity utilisation basis.
5. The cost of machinery and equipment items as
indicated refer to a particular make and the
prices are approx. to those ruling at the time of
the preparation of this report.

6. The provisions made in other respects viz. raw materials,

personnel, utilities, overheads etc. are drawn on the
basis of standard operations and average outputs
and the costs indicated against each are approximate
and based on local market conditions and observations.

7.Components such as transistors, PCB, diodes,

Potentiometers, resistors, capacitors, band switch ferrite
parts, gang condenser, I.F. transformers, plastic
cabinent, hardware etc. are to be purchased from
outside.

V. Technical Aspects

(i) Process Outline

Manufacture of radios consists mainly of assembling

electronic components and its testing, components such
as small transformer, coils, transistors, resistors,
capacitors are mounted and soldered on PCB cards of
oscillator and amplifier. These are tested for
selectivity, freq. response, output and gain etc. These
PCB's are fixed in a plastic cabinet with volume control
band change switch, dial, speaker etc. The complete
assembly is again tested for sensitivity, selectivity
gain, distrotion and output, Finally before packing the
set is subjected to performance test.

(ii) Quality Specifications

Radios will be manufactured as per IS:3397-1966

(iii) Motive Power required 5 KVA

VI. Financial Aspects

1. Fixed capital

(i) Land and Building

Built up area 100 sq.mtr.
Office,stores etc. 25 sq.mtr.
Working shed 75 sq.mtr.

158
 S/14.3

(ii) Machinery and Equipment

(a) Production Unit

Sl .No. Description Indigeneous/ Qty. Price(Rs.)

Imported

1. Coil Winding Machine Indigeneous 2

2. Bench grinder . do 1
3. Drilling machine(1/4") do 1
4. Arbor Press(hand
operated) do

(b) Testing Equipment

5. Dual trace Oscilloscope

0-5 MHz do 1
6. RF/AF Signal Generator do 3
7. Power Supply(15V.IA) do 4
8. Digital Multimeter do 2

9. Multimeter Analog do 3

TOTAL 41,400.00

(c) Electrification and Installation charges

@ 10% of cost of machinery and equipments

Total cost of machinery and equipment

etc.

(iii)Cost of moulds/other fixtures/tools

(iv) Cost of office equipment/working tables
Total fixed capital(ii) , (iii) and (iv) 63,600.00

159
 S/14.4

2. Working Capital(Per Month)

(i) Personnel(Admn. and Supervisory)

Designation No. Salary(Rs.) Total(Rs.)

Production Manager 1
Sales/Purchase Asstt. 1

Typist/Clerk 2
Salesman 1
Peon 1
Chowkidar 1

Technical (skilled and un-

skilled) 2

Supervisor 2

Skilled workers 3

Semi-skilled workers 6

Unskilled workers 2

Total salary
(+) Perquisites @10% of
salaries

Total Rs. 19,200.00

(ii) Raw Materials including Packaging requirement(per month)

Particulars Indigeneous Qty. Rate Value(Rs.

Printed Circuit
"
Board 1,000

Condensors " 10,000

II
Resistors 20,000
"
Band Switch 1,000

Volume control "

1,000

Speaker "
1,000

160
 S/14.5

(Rs.
Ferrite rod Indigeneous 1,000
Cabinet and
Other plastic
components " 1,000

I.F.T's(set) 1,000

Dial 1,000

Battery Holder 1,000

Misc.Parts
(Hardwares) " 1,000

Packaging etc. " 1,000

(set) "

1,03,200.00

(iii) Utilities(per month)

Power 5 00 KWH unit

(iv) Other Contingent expenses(per month)

Rent

Postage and stationery

Telephone

Consumable stores

Repairs and maintenance

Transport charges

Advertisement and publicity

Insurance

Taxes

Misc.Expenditure

Total(other contingent expenses including

utilities) 18,000.00

161
 S/14.6

(v) Total recurring expenditure(per month) Rs . 1, 40,400.00

(vi) Total working capital(on 3 months basis) Rs.4,21,200.00

3. Total Capital Investment

(i) Fixed capital 63,600.00

(ii) Working capital 4,21,200.00

TOTAL (i) and(ii) 4,84,800.00

4. Cost of production(per year)

Total recurring cost per year Rs.16,84,800.00

Depreciation on moulds and
fixtures @ 25%

Depreciation on m/c and equipment

@10%

Depreciation on office equipment

@20%
Interest on total investment @15%
Rs.17,65,800.00

5. Turn over(per year)

Item Qty. Rate Value
(Rs.) (Rs.)
Low cost transistor
radios 12,000 168.00 20,16,000.00
Total turn over 20,16,000.00

6. Net profit per(5-4) before income

tax 25,02,000.00

7. Net profit ratio 12.4%

8. Rate of return 51.6%

9. Break even point 5 4.8%

162
 S/14.7

10. . Additional Information(if any)

The approval of the scheme is required from

the State Directorate of Industries in consultation
with the SISI.

VII. Addresses of Machinery and Equipment Suppliers

1. M/s. Pieco Electronics and Electricals Ltd., Science

and Industry Division, Shivsagar Estate, Block A,
Worli, Bombay-18.

2. M/s. applied Electronics Ltd., Aplab House, A/5/6,

Wagle Indl. Estate, Thane- 400 604(Maharashtra).

3. M/s. Toshniwal Bros(Pvt.) Ltd., Jhandewallan Extn.,

New Delhi-55.

4. M/s. Unitron Ltd. NIT, Faridabad.

5. M/s. Motwane MFG. Co.(P)Ltd., 12 7, Mahatma Gandhi

Road, Bombay-1.

6. M/s. Ruttonsha Simpson Pvt. Ltd., 96/4, International

House, Bombay-Agra Road, Vikhroli, Bombay-86.

7. M/s. Electronics Dev. Laboratory, 6/3, Kirti

Nagar Indl. Area, New Delhi-15.

8. M/s. Electronics Corpn. of India Ltd., P.B.No.2021,

Hyderabad.
9. M/s. Battliboi and co. Ltd., P.B.No. 190-1, Forbes
St. Bombay-1.
10. M/s. Perfect Machine Tools Co. Sir P.M. Road, Bombay-1

11. M/s. Power Tools Appliances, 2 Dal House Sq.Calcutta.

12. M/s. William Jack and Co., 16, Netaji Subash Road,
Calcutta.
13. M/s. Brimco Plastic Machinery, Dr. D.Naroji Road,
Bombay.
14. M/s. Hindustan Instruments Ltd., 603, Vishal Bhavan,
Nehru Place, New Delhi -110019.

163
 S/14.8

VIII. Addresses of Raw Material Suppliers.

1. M/s. Bharat Electronics Ltd. Jalahalli, Bangalore.

2. M/s. Asian Electronics Ltd. 221, Dr. Dadabai Naroji

Road, Bombay-1.

3. M/s. Asian Electronics Ltd., 221, Dr. Dadabai Naroji

Rd., Bombay.

4. M/s. Continental Device(India) Ltd., C-120, Naraina

Indl. Area, New Delhi-110028.

5. M/s. Electronics Corpn. of India Ltd., P.B.No. 2021,

Hyderabad.

6. M/s Semi-conductor Ltd., Vadgaon, Shastri Nagar,

Poona.
7. M/s. Hindustan Conductors Ltd., Nadiad,(Gujarat).

164
 S/15.1

S/15 Profile for a CRT Data Display Monitors(Monochrome)

Manufacturing Unit
(Electronic Industry)

I. Product and its Uses

CRT data display monitors form a very essential

part of a computer as they are not only used at the
console for the display of input/output data but also
in the peripherals such as data entry terminals. The user
of CRT monitor can be divided into the following
sub-groups:

1. Computer manufacturers.

2. Data acquisition system manufacturers.

3. Data entry terminals manufacturers.

4. Home computer users(Direct consumers).

5. Educational institutions.

The CRT monitors are not only compact and easier

to operate but can also handle more data at much faster
rate. Computer manufacturers; these days, are going in
for O.E.M. contracts with small scale units for CRT
monitors thus reducing their own inventory and overheads.

II. Market Potential

The electronics production during the terminal year

of the Seventh plan(1989-90) will touch Rs.11,980 crores
at the maximum growth rate and Rs.10,002 .crores at the
minimum growth rate, according to projections made for the
seventh plan.

III. Basis and Presumptions

1. The basis for the calculation of the production

capacity is normally on single shift basis on 75% efficiency
2 Non-refundable deposits, project preparation cost
etc. wherever needed, may be considered under preoperative
expenses.

165
 S/15.2

3. The rate of interest in the scheme has been

taken on the basis of 15% on an average, however,
this figure is likely to vary depending on the financial
outlay of the project as well as location of unit.

4. The break even point in the scheme has been

calculated on the full capacity utilisation basis.

5. The cost of machinery and equipment items as

indicated refers to a particular make and the prices
are approx,those ruling at the time of the preparation
of this report.

6. The provisions made in other repeat viz. raw materials,

personnel, utilities, overheads etc, are drawn on the
basis of standard operations and average outputs and the
costs indicated against each are approximate and based
on local market conditions and observations.

7. This scheme envisages the procurement of all

components/raw material from outside.

8. The customs duty on imported raw materials has been

considered on current tariff rates.

IV. Technical Aspects

(i) Process Outline

The main PC Board is assembled by mounting the

various active and passive components. All the mechanical
fittings are fitted to the cabinet alongwith Cathode Ray tube
and other controls and terminations. Printed circuit board
is tested individually with the help of oscilloscope,
multimeter and power supplies and then fitten into the
cabinet. The wiring is completed for PCB. The final testing
is done with the help of personal computer and software
package for video monitor testing.

(ii) Production Capacity (Proposed) 1000 Nos.P.A.

(iii) Motive Power Required : 5 KVA

V. Financial Aspects.

1. Fixed Capital

166
 S/15.3

(i) Land & Building

Built up Area 150 sq.mtrs,
Office and stores 50 sq.mtrs,
Working Shed 100 sq.mtrs,
(ii) Machinery and Equipment

S.No. Description Qty Ind/Imp, Price Total

Rs. Rs.
1. Oscilloscope(50 MHz) 2 Ind/Imp,
2. Personal computer with
composite Video output 1 Ind.
3. Soft ware package for
video monitor testing Ind.
4. Digital multimeter(Ah
digit) 2 Ind.
5• Break down tester
(5 KV) 1 Ind.

6. EHT Probe 2 Ind.

7. DC power supplies
3 Ind.
(30 V, 2A)
1 Imp.
8. LCR meter(digital)
1 Ind.
9. Lux meter
2 Ind.
10. Variacs
11. Servo Voltage
Stabiliser(2 KVA) 1 Ind

12. Drilling machine

(general purpose) 1 Ind.

13. Tem, controlled

soldering iron 2 sets Ind.

1,74,00.00

167
 S/15.4

Electrification and
installation charges @ 10% of cost
of equipment

Total cost of machinery

and equipments Rs.1,91,000.00

NOTE: Value of Imp. instruments

include customs duties etc,

Cost of tools/
jigs/fixtures

Cost of office
equipments working
tables etc.

Total fixed capital Rs. 2,15,000.00

2. Working Capital(per month)

(a) Staff and Labour

(Technical, office, sales and others)

S.No. Description No. Salary(Rs.) Total(Rs.)

1. Works Manager(Engineer) 1

2. Engineers 2

3. Supervisors(Tech.) 1

4. Skilled workers 3

5. Semi-skilled workers 3

6. Helper 2

7. Accounts Officer 1

8. Sales Engineer(Tech.) 1

168
 No Salary(Rs.) Total(Rs.)
9. Accounts Assistant

10. Typist/Clerk 2

11. Peons 2

+Perquisites @ 10% of salaries 24,000

Total

(b) Raw Material/components(per month on single shift basis)

S.No. Description Qty. Imp/ Cost Total

Unit Ind. (Rs.) (Rs.)

Cathode ray tube

(Data grade High
resolution) 12"/14"
(90 def) 1 Imp.

2 Fly back transformer 1 Imp.

3. Deflection yoke 1 Imp.

4. Plastic cabinet Imp./Ind

5. Cost ( 1 set )
Hor. wideth coil
Hor. Linearity coil
Peaking coil OSC coil: 1 set Imp.

6. Transistors 1 set Imp.

7. Bipolar/capacitor 1 Imp.

8. E l e c t r o l y t i c cap. 1 set Ind.

9. Cermet r e s i s t o r /
metal oxide r e s i s t o r s 1 set Imp.

]0 . Carbon film r e s i s t o r 1 set Ind.

11. Presets/Potentio
meter 1 set Ind.
12. High voltage/high
current rectifier Imp.

13. Rectifier/diodes Ind.

169
 S/15.6

Sl.No. Description Qty. Imp/ Cost Total

14. Printed circuit board Unit Ind. (Rs.) (Rs.)
(Glass epoxy) - Ind.
15. Mains transformer - Ind.

16. Misc. hardwares

Solders Cables etc. _ Ind.
1,860.00
hs)
Total for (83 sets/months) 1,54,380.00

Note: The cost indicated above for the imported components/

raw materials includes the custom duties etc.

(c) Utilities(Per month)

Power 500 units @ 0.72 per unit Rs. 360.00

Total cost of utilities/month Rs. 360.00

(d) Other items of expenditure (per month on

single shift basis)

1. Advertisement and publicity

2. Transport

3. Consumable stores

4. Rent

5. Insurance

6. Stationery

7. Postage and telephone

8. Repairs and maintenance

9. Sales expenses
Rs. 24,240.00

Total recurring expenditure(per month) 2,03,340.00

Working capital for 3 months 6,10,000.00

170
 S/15.7

3. Total Investment

(i) Fixed capital Rs. 2,15,000.00

(ii)Working capital Rs. 6,10,000.00

Rs. 8,25,000.00

4. Total cost of production (per year)

(i) Total recurring expenditure

(ii)Depreciation on m/c and equipment

@ 10%

(iii)Depreciation on office equipment

@20%

(iv) Depreciation on tools, jigs/fixtures

@ 25%

(v) Interest on total investment

@ 15% per annum

Rs. 25,88,630.00

Say.Rs. 25,88,000.00

5. Turnover (Per Year)

Item Qty. Rate Value
(Rs.) (Rs.)

CRT Data display monitor

(monochrome) 1,000 ,120 31 , 2 0 , 0 0 0 . 0 0

6. New Profit ratio 17%

7. Net profit per year(before

income tax) 5 ,32,000 .00

8. Rate of return 65%

171
 S/15.8

9. Break even point

(i) Total fixed cost(per year)

(a) Depreciation Rs.24,800.00

(b) Rent Rs.64,800.00

(c) Interest on total investment Rs.1,23,750.00

(d) 40% of salary and wages Rs. 1,15,200.00

(e) 40% of overheads Rs. 1,16,352.00

Rs. 4,44,902.00

FC X 100
(ii)BreaK Even point = = 46%
FC + Net profit

10. Remakrs: The approval of the scheme is required from the

State Director of Industries in consultation with small
Industries Service Institute.

VI.Names and addresses of suppliers of Machinery and Equipment

1. M / s . Electronics Trade and Technology, Dev. Corpn. Ltd.,

15/48, Malcha Marg, Chanakyapuri, New Delhi-21.

2. M / s . Electronics , Dev, Laboratory, 6/3, Kirti Nagar,

Indl. Area, New Delhi-15.
3. M/s. U.P.Electronics Corpn. Ltd., M-41, Greater Kailash-II ,
New Delhi-48.
4. M / s . U.P. Electronics Corpn, Ltd., M-41, Greater Kailash-II,
New Delhi-48.
5. M / s . Applied Electronics Ltd., Aplab House, A5/6 Wagle
Indl. Estate, Thane-400604(Maharashtra).

6. M / s . Usha Microprocessors Controls Ltd.,105, Chiranjiv

Towers, 43 Nehru Place, New Delhi-19.
7. M / s . Computer Point, NDSE Part I, New Delhi
8. M / s . Semi-conductors complex Ltd., Phase VIII, SAS Nagar
160059(Punjab).

172
 S/15.9

9. M/s. Electronics Systems Punjab Ltd., B-81, Phase VII,

Indl. Area, SAS Nagar, Chandigarh-160051.

10.M/s. Elnova Pvt. Ltd., 41, New Okhla Indl. Complex,

Phase II, Scheme-Ill, New Delhi-20.

11.M/s. Logic Controls(Pvt.)Ltd., 1501, Hemkunt, 98,

Nehru Place, New Delhi.

12.M/s. Pieco electronics and Electricals Ltd., Shivsagar

Estate, Block A, Workli, Bombay-400018.

13.M/s. Systronics, 89-92, Indl. Area, P.O. Naroda,

Ahmedabad.

VII.Addresses of Raw Materials/Component Suppliers

1. M/s. Electronics Trade and Tech. Dev. Corpn, Ltd., 15/48,

Malcha Marg, Chanakyapuri, New Delhi-11 00 21.

2. M/s. Bhurji Electronics, B-102, Naraina Phase I, New

Delhi-28.

3. M/s. Continental Devices India(Ltd.), C-120, Naraina,

New Delhi.

4. M/s. Bharat Electronics Ltd., Jallahali, Bangalore.

5. M/s. Electronic Corpn. of India, Cherapalli, Hydrabad.

6. M/s. Chahal Engg. and Construction Co.(Pvt.) Ltd., 86,

Nehru Place, New Delhi.

7. M/s. Indicators Mfg. Co., C-170, Naraina Indl. Area

Phase I, New Delhi-28.

8. M/s. U.P. Electronic Corpn. Ltd., M-41, Greater Kailash

II, New Delhi.

173
 Appendix 2.06

Existing Small Industries in Different Blocks of Sultanpur District.

Name of the Block: Name of t h e T e h s i l :

Duboypur Sultanpur

Sl. Name of the No .of No .of NoLof Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Rice mills 5 63 10 18.25 15.45 Rice Proprie-

torship
2. Oil mills 138 541 309 13.88 51.06 Oil do

3. Bakery 15 79 39 3.90 9.85 Bread,

Biscuit Partner.
4. Confectionary 5 33 16 1.75 4.55 Confec. Prop.
5. Dal mill 3 35 15 4.51 21.75 Dal do

6 . Ice candy 5 27 10 0.59 2.30 Ice candy do

7. Wooden furn. 44 132 132 2.20 1.50 Wooden do

8. Agri. impl. 31 157 48 6.20 15.50 Agr. do

9. Auto service 55 198 175 3.65 6.85 Service do

10. Steel almira 55 271 145 9.25 15.35 Chair Parterm.

11. Steel box 15 45 45 0.85 1.50 Steel box do

12. Kealkgouds 25 63 63 2.35 3.15 Share Prop.

13. Printing Press 20 129 129 1.15 8.25 do

14. Offset p r i n t . 1 7 7 0.59 9.35 do

15. General engg. 55 179 179 5.50 22.37 Service do

16 . Readymade garm. 55 163 163 2.75 5.59 Furn. do

17. Radio/TV 48 144 144 1.4 4.80 Radio, TV do

18. Iron foundry 1 15 5 4.75 12.75 Chaff Partern.

1 9 . HDP Bags 1 5 2 1.25 5.20 Bags Proper.
20 . Cycle rep. 25 35 35 0.39 0.78 Cycle do

59
Contd..
 Appendix 2.06
Existing Small Industries in Different Blocks of Sultanpur D i s t r i c t

Name of the Block: Name of the Tehsil:

Duboypur Sultanpur

Sl. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

21. Grind masala 15 37 37 1.65 2.25 Masala Partern,

22. Sawing timbers 15 73 39 3.39 9.35 Sawing
timber do
23. Mechanic tools 2 9 9
9.39 5.85 Tools Prop.
24. Candle 8 21 21
0.35 1.50 Candle do
25. Agarbatti 3 13 13
0.25 0.15 Agarbatti do
26. Inks 1 3 3
0.10 0.15 Pens e t c . do
27. Cold storage 3 18 5
0.55 45.85 , do
28. Aluminium brass
utensils 44 23 230 12 .60 16 .70 Almnn .utensils do

60
 Appendix 2.07
Existing Small Industries in Different Blocks of Sultanpur D i s t r i c t .

Name of t h e Block: Name of t h e Tehsil:

Bhetua Amethi

Sl. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Edible Oil 10 37 10 0.90 4.35 Proprietor-

ship
2. Furniture and 5 13 13 0.31 0.49 -do-
Building material
3. Agricultural 3 6 6 0.06 0.09 -do-
Implements
4. Rice Mill 1 20 5 0.90 10.75 Partaership

5. Leather Goods 3 6 6 0.12 0.19 Proprietor-

ship

61
 Appendix 2.08

Existing Small I n d u s t r i e s in Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of the T e h s i l :

Bhadar Amethi

Sl. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Edible Oil 23 60 60 2.35 8.80 Mastard Proprietor-:

oil & cake ship

2. Carpentry 29 29 0.39 1.35 Door,window -do-

& furniture

3. Washing Soap 2 8 4 0.30 0.25 Washing soap -do-

4. General Engin— , 4 15 12 0.12 0.49 Rep. & -do-
eering servicing
5. Readymade Gar- 8 16 16 0.51 0.59 Garments -do-
ments
6. Wair and paper 1 4 0.15 0.25 Wair & pin , -do-
pin
7. Cycle Repairing 1 3 2 0.01 0.33 Cycle Rep. -do-

8. Grinding masala 1 3 2 0.05 0.51 Spices -do-

9. Lime & Surkey 1 4 2 0.05 0.27 -do-

10. Printing Press 1 4 4 0.09 0.50

Paper -do-
printing

11. Brick klin 1 83 83 5.35 0.62 Brick -do-

12. RCC span pipe 1 12 12 0.75 1.85 12 cc span -do-

pipe

13. Scooter shut 1 4 4 0.20 0,26 -do—

14. Leather Goods 2 6 6 0.11 0.11 Shoes & -do-
Chappels

15. Radio Repairing 2 4 4 0.07 0.15 Radio Rep. . -do-

16. Card Board 1 18 10 9.25 16.25 Card Board -do-

17. Electric Repairing 1 3 3 0.05 0.17 Elect. Rep. -do-

62
 Appendix 2.09

Existing Small Industries in Different Blocks of Sultanpur District.

Name of the Block: Name of t h e T e h s i l :

Amethi Amethi

Sl. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Printing Press 21 5 0.70 1.25 Printing Proprietor-

ship
2. Brick Klin 2 5 2 3.75 1.20 Brick -do-
3. General & Engin- 18 75 36 1.85 5.45 Rep.& -do-
eering servicing
4. Candle 1 3 1 0.15 0.10 Candle -do-
5. Leather goods 11 33 33 0.33 0.22 Bags, shoes -do—
chappels
6. Washing Soap 3 12 6 0.47 1.20 Washing Soap -do-
7. Saw mills 6 30 12 0.60 3.60 Sawing of -do-
timber
8. Edible Oil 28 84 18 0.90 10.64 Edible oil, -do-
cake
9. Non-Edible Oil , 3 21 3 21.15 27.29 Non-edible, Partner-
cake ship
10. Book binding 1 § 2 0.21 0.45 Book binding Partnershi
11. Thread Reel 2 8 2 0.45 0.35 -do-
12. Plash Container 1 4 1 0.10 0.25 -do-
13. Sprain Painting 1 2 1 0.09 0.12 -do-
14. Auto Repair 3 15 5 0.60 6.75 Rep.& -do-
servicing
15. Ice Candy 5 25 5 1.25 3.00 Ice Candy -do-
16. Agricultural 2 22 5 4.28 17.35 Agri.Imple. -do-
Implements
17. Rice Mills 2 27 2 12.25 18.35 Rice -do-
18. Steel Box, water 5 15 10 0.50 0.12 Box,Taners -do-
task furniture
19. Carpentry 4 12 12 0.40 0.08 -do-
20. Lime and surky 1 5 1 0.55 0.60 -do-

63 Contd..
 Appendix 2.09

Existing Small Industries in Different Blocks of Sultanpur District.

Name of the Block: Name of the Tehsil:

Amethi Amethi

Sl. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

21. Battery Recon- 1 2 2 0.10 0.12 Servicing -do-

ditioner
22. Radio, T.V. 5 10 5. 0.25 0.15 Rep. & -do-
Servicing Servicing
23. Grinding of 2 6 2 0.35 0.49 Spices -do-
spices
24. Toffy & Con- 1 3 1 0.25 0.15 Confect- -do-
fectionary ionary
25. Cement jally 2 8 8 0.30 0.36 Cement, -do-
jally,
Gamla
26. Bread & 2 6 6 0.25 0.39 Bread & -do-
Biscuits Biscuit
27. Card Board Boxes 1 2 2 0.10 0.15 Card Boardl -do-
& box
28. Readymade 2 6 6 0.25 0.39 Garments -do-
Garments
29. Electory 2 4 4 0.04 1.80 Photostat -do-
photocopies
30. Mill Board 1 16 10 10.35 37.46 -do-
31. Electrical 1 3 2 0.10 0.30 Rep. & -do-
Repairing Servicing

64
 Appendix - 2.10

Existing Small Industries in Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of t h e T e h s i l :

Sangrampur Amethi

S1. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Edible Oil 15 40 20 1.75 5.55 Edible Propri-

oil Cake etor-
ship

2. Cement Jally 0.07 0.10 . do

3. Cycle 0.06 0.04 Repairing do

repairing

4. Wooden furni-
ture making 23 19 0.45 0.94 Wooden
furniture do

5. Agri.Imple-
ments . 0.03 0.05 Agri.Imple-
ments do

65
 Appendix 2.11

Existing Small I n d u s t r i e s In Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of the T e h s i l :

Gauriganj Gaujriganj

Sl. Name of the No.of No.of No.of Work- Fixed Produ- Type of
No. enterprise unit people skilled ing cap- cts/ owner-
employed people capital ital Service ship
(lakhs) (lakhs)

1. General Engg. 10 30 15 0.90 1.80 fiepairing Proprietor-

& Servicing ship

2. Sawing of Timber 2 8 8 0.67 0.98 Sawing of -do-

Timber

3. Tailoring 1 3 3 0.13 : 0,43 Garments -do-

4. Electric Welding 4 12 12 0.60 1.13 Electric -do-
Repairing &
servicing
5. Printing press 5 25 25 0.42 2.23 Paper -do-
printing
6. Wooden furniture 6 18 18 0.25 1.50 Wooden -do-
Making furniture
7. Leather shoes & 7 14 14 0.10 0.70 Leather -do-
goods goods &
shoes
8. Ice candy 1 5 3 0.18 0.65 Ice candy -"do-
9. Rice Mills 3 21 6 15.65 36.95 Rice Hus- -do-
king
10. Reconditioner of 8 16 8 1.25 2.12 Recharging Partnership
Battery & servicing Proprietor-
of battery ship
11. T.V. Radio Repairing 5 10 10 0.47 1.50 T.V. Radio -do-
repairing
& servicing
12. Cement Jally 5 20 5 0.53 0.87 Cement Jally -do-
13. Dal Mill 1 4 4 0.54 1.15 Dal -do—
14. Brass Utensils 3 3 3 0.76 1.15 Brass -do-
utensils
15. Shurki 1 6 2 0.15 0.40 Shurki -do-
16. Watch Repairing 3 3 3 0.36 0.98 Watch -do-
repairing
& Servicing

66 Contd....
 Appendix 2.11

Existing Small I n d u s t r i e s In Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of the T e h s i l :

Gauriganj Gauriganj

Sl. Name of the No.of No.of No.of Work- Fixed Produ- Type o
No. enterprise unit people skilled ing cap- cts/ owner-
anployed people capital ital Service ship
(lakhs) (lakhs)

17. Fabrication 4 14 8 0.46 0.82 Gate , -do-

Channel
18. Tyre repairing 3 6 6 0,38 1.33 Tyre -do-
repairing
& Servic-
ing
19. Bakery 1 4 4 0.19 0.41 Biscuits -do-
Bread
20. Cycle repairing 4 6 6 0.13 0.23 Cycle -do-
repairing
& servicing
21. Confectionary 0.16 0.38 Confection do-
ary

67
 Appendix 2.12

Existing Small Industries In Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of the T e h s i l :

Shagarh Gauriganj

Sl. Name of the No. of No.of No.of Work- Fixed Produ- Type of
No. enterprise unit people skilled ing cap- cts/ owner-
employed people capital ital Service ship
(lakhs) (lakhs)

1. General Engg. 4 12 6 0.36 0.72 Repairing Proprietor-

& Servicing ship

2. Tailoring & Ready- 7 14 14 0.49 0.49 Garments -do-

made garments
3. Cycle parts manu-
facturing 1 8 8 8.0 10.78 Cycle parts -do-
4. Radio Repairing 1 2 2 0.03 0.05 Repairing -do-
& Servic-
ing
5. Cycle Repairing 1 2 2 0.04 0.07 Repairing & -do-
servicing

68
 ; Appendix 2.13

Existing Small Industries In Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of the T e h s i l :

Jamo Gauriganj
Sl. Name of the No. of No.of No. of Work- Fixed Produ- Type of
No. enterprise unit people skilled ing cap- cts/ owner-
employed people capita]. ital Service ship
(lakhs) (lakhs)

1. Sawing of Timber 1 5 3 0.30 0.47 Sawing of Proprietorship

timber

2, General Engg. 1 4 1 0.15 0.27 Repair and -do-

Service
3. Electrical Repairing 1 2 2 0.05 0.30 Repairing -do-

4. Washing Soap 1 5 2 0.11 0.33 Washing -do-

soap
5. Bakery 1 5 4 0.35 0.21 Roti, -do-
Biscuit

6. Grinding of spices 1 3 1 0.09 0.25 Spices -do-

7. Gril Gate & 1 3 3 0.09 0.21 Agricultural -do-

Agricultural implements
implements & Grils.

8. Leather Hand bags 1 3 3 0.10 0.22 Hand bags -do-

9. Reconditioner of 1 3 1 0.05 0.16 Servicing -do-

Battery
--

69
 Appendix 2 .14
Existing Small Industries in Different Blocks of Sultanpur D i s t r i c t .
Name of the Block: Name of the Tehsil:
Shukul Bazar Musafirkhana

S1. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs) (ownership)

1. Edible oil 28 110 28 3.20 Mustard Propriet-

7.15
Oil & orship
cake
2. Carpentry 2 6 6 0.10 0.55 Furniture • do
3. Sawing of Timber 2 8 8 0.70 1.08 Sawing of
timber dO
4. Tractor trolley 1 7 3 0.50 1.20 do
5. Welding work 3 6 6 0.30 0.90 Welding
work do
6. Readymade 6 16 Garments do
garment
7. Plywood 1 4 2 0.06 0.20 plywood ' do
8. ice candy 1 5 3; 0.19 0. 67 Ice candy do
9. Cycle sheet cover 1 2 2 0.10 0.25 Partnership
10. Ball pen 1 2 2 N.A.
11. Cement jally 2 6 2 0.25 0.40. do
12. Rice mill 2 14 6 5.12 12.20 Proprie-
torship
13. Watch repairing 3 6 6 0.10 0.20 do
14 . Leather shoes 11 2 2 0.03 0.10 do
15. Fabrication work 1 4 2 0.04 0.05 Fabri. do
16. Cycle repairing 1 2 2 0.15 0.27 Repair. do
17. Electric rep. 1 2 2 0.15 0.27 Rep. do
18. Radio repairing 1 2 2 0.13 0.34 Rep. do

70
 Appendix 2. 15
Existing Small Industries in Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of the Tehsil:

Musafirkhana Musafirkhana
Sl. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit • people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs) .
1. General Engg. 3 9 0.27 0.73 Repairing Propriet-
& Servi. orship
2. Reconditioner Recharging
of battery 8 16 8 1.25 2.20 of batterry do
3. Wooden furniture
making 9 27 27 0.45 2.05 Wood. furn, do
4. Wooden toy m a k . 2 6 6 0.10 - Wooden toy do
5. Printing press 2 10 10 0.21 1.15 Paper
print. do
6. Radio repair. 9 18 0.98 1.90 Servi. &
Radio
rep. do
7. Leather shoe 6 12 12 0.10 0.65 Leather
shoes 'do
8. Biscuit 1 4 4 0.19 0.43 Biscuits do
9. Clement jally 1 4 2 0.10 0.19 Cement
jally do
10. Woolen carpet 1 4 4 0.20 0.25 Wool .carpet do
1 1 . Photostat 3 3 3 0.30 0.75 Photostat do
1 2 . Motor cycle
rep. 3 9 0.30 0.90 Motor cycle
rep. &
servicing do
13. Watch repairing 5 10 5 0.45 1.10 Watch
rep. do
14. Ice candy 1 5 3 0.18 0.65 Ice candy do
15. Grinding of
spices 1 3 1 0.12 0.25 spices . do
16. Agarbatti 1 2 1 0.10 0.20 Agarabatti do
17. Sawing of
timber 2 6 3 — Sawing timber do
18. Tyre repairing 3 6 3 0 .38 1 .60 Tyre rep. '. do
19. Confectionery 2 8 8 0 .36 0 .86 cofec. do
71
 Appendix 2 .16

E x i s t i n g Small I n d u s t r i e s in D i f f e r e n t Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of t h e T e h s i l :

Baldirai Musafirkhana

S l . Name of the No .of No .of No .of Work- Fixed Products/ Type of

No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Sawing timber 4 12 6 0.44 1.29 Sawing Propriet-

timber orship
2. Edible o i l 17 40 20 1.70 9.16 Edible oil do

3. Ice candy 1 5 1 0.19 0.72 Ice candy do

4. Radio r e p . 3 6 6 0.06 0.30 Rad.rep. do

5. Wooden furn. 3 6 6 0.17 1.10 Wood .f urn. do

6. Leather shoe 2 4 4 0.19 0.29 Leather shoes do

making

7. Agric. implem. 3 9 9 0.48 0.79 Agri.implem do

8. Gen. Engg. 2 6 4 0.37 0.59 Rep.& Serv . do

9. Agrbati making 1 2 2 0.10 0.20 Agarbati do

10. Recondition-1 of
battery 1 2 1 0.17 0.26 Servicing do

11. Tailoring 5 10 10 0.30 0.43 Garments do

12. Cement j a l l y 1 3 1 0.15 0.20 Cement

Jally do

72
 Appendix 2.17

Existing Small Industries in Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of the Tehsil:

Jagdishpur Musafirkhana.

S l . Name of the No .of No .of No .of Work- Fixed Products/ Type of

No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Wooden furn. 24 109 60 9.45 59.18 Wood.furn. Propriet-

orship .,
2. Dal Mill 1 7 5 1.30 2.16 Dal do
3. Gen .engg. 7 17 9 0.49 0.83 Rep.& Ser. do
4. Edible o i l 44 143 55 8.95 25.62 Edible o i l do
5. Leather goods 14 33 33 0.79 0.94 Leather shoes Parter.
6. Auto repairing 20 76 76 1.57 9.15 Rep .& Serv. ' Prop.
7. Agri.inplment. 10 15 15 0.53 0.69 Agri.impl Partner.
8. Portland cement 2 123 25 57.45 33.29 Cement Prop.

9. Sawing of timber 1 5 5 0.17 0.75 Sawing timber do

10. Fabrication work 23 43 23 2.07 25.30 Gate,channel
etc. do
1 1 . Galvanising 2 28 22 6.25 13.05 Galvan. do

1 2 . Printing press 4 28 28 3.27 9.55 Paper p r i n t do

1 3 . Steel box 1 3 3 0.08 0.09 Steel box do

14 Ice candy 1 5 5 0.13 0.45 Ice candy do

1 5 . Photostat 3 6 3 0.60 1.35 Jobwork do

1 6 . Ready made gar. 21 42 42 0.29. 1.19 Garments do

17. Steel furn. 4 26 12 4.35 18.26 Almira do

1 8 . Grindin masala 1 2 2 0.03 0.16 Furn. do

1 9 . Washing soap 1 5 3 0.17 0.43 Wash.soap do

• .contd..
73
 Appendix 2.17

Existing Small I n d u s t r i e s in Different Blocks of Sultanpur D i s t r i c t .

Name of the Block ; Name of the T e h s i l :

Jagdishpur Musafirkhana

Sl. Name of the NO .Of No .of No .of Work- . Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)
20. Rice mill 4 46 20 17.85 49.11 Rice Proprie-
torship
21. SSP 1 10 6 25.80 43.41 Super Phos Pvt .ltd.
SSP
22. Radio r e p . 3 6 6 0.17 0.39 • Radio r e p . do
2 3 . Watch r e p . 7 11 7 0.23 0.37 Watch r e p . do
24. X ray film 1 4 4 0.15 0.38 do

25. Elect .rep. 2 4 4 0.29 0.37 Rep.& Serv,. do

26. Electric rod 1 28 20 26.61 38.39 Electro rod Pvt.Ltd.

27. Plastic toys 1 9 5 0.45 2.75 Plastic toys , Prop;

28. Wipar Bellet
& auto mobile
parts 1 45 38 10.00 48.00 Wiperbelt do
Auto.
|
29. Rep .sawing m/c 2 4 4 0.12 0.18. Rep & Serv. do
of sawing mach.

30. Drycleaning 1 2 1 0.11 0.131 Dryclean. do

31. Polymer film 1 16 12 6.53 46.98 Polymer
film Pvt.ltd.

32. Bakery 2 7 7 0.75 2.14 Biscuits do

33. Cycle r e p . 1 2 2 0.03 0.09 Cycle r e p . do

34. PVC Bags 6 80 67 13.55 72.68 PVC Bags Prop.,

Pvt.Ltd.
& Partn-
ership

35. Cement j a l l y 0.12 0.25 Cement jally do

74
Contd....
 Appendix 2.17
Existing Small Industries in Different Blocks of Sultanpur D i s t r i c t .
Name of t h e Block: Name of t h e T e h s i l :
Jagdishpur Musafirkhana

S l . Name of the No .of No .of No .of Work- Fixed Products/ Type of

No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)
36. HDPE Pipe 3 39 27 11.27 73.55 HDPE Pvt.Ltd.
Parter. &
Prop.
37. Stove rep. 2 4 4 0.16 0.30 Stove rep. Prop.
38. HDPE Bags 6 72 47 15.07 86.49 HDPE Parter;
woven sacks
39. Copperwire 1 12 11 5.35 41.20 Cooperwire do
40. Typre flap trade
rubber 1 14 12 2.60 10.09 Tyre flap Pvt .Ltd.
41. Biscuits 1 25 20 4.65 74.25 Biscuits Pvt.Ltd.
42. PVC Wires &
9 2.15 16.51 PVC Wire Prop.
cables 1 11
14 2.50 15.70 Leather do
43. Leather pump 1 16
4 7.75 Detergent Prop. &
44. Detergent cake 2 10 Pvt.Ltd.

45. Rep. of 1 9 1.85 11.02 Rep .of tran do

transformers
46. Hawai chappal 1 5 3 1 .30 8.68 Hawai chap . Pattern.
47. PVC Resin 1 10 8 6 .29 44.00 PVC Pvt .Ltd.
48. Refaning 1 3 2 0 .17 0.35 Refanning Propr.

49. PP Shuttle 1 14 10 3 .25 18.72 PP Shutli Pvt.Ltd.

50. Power cable

& PVC 1 30 28 9.39 56.89 Power cable Pvt.Ltd.
51. Packaging 1 19 17 7.00 9.10 packing Pvt.Ltd.

75
 Appendix 2.18 ;

Existing Small Industries In Different Blocks of Sultanpur District.

Name of the Block: Name of the T e h s i l :

Kadipur . Kadipur

Sl. Name of the No.of No.of No. Of Work- Fixed Produ- Type of
No. enterprise unit people skilled ing cap- cts/ owner-
employed people capita]
. ital Service ship
(lakhs) (lakhs)

1. Wooden furnitures 26 52 52 1.34 1.82 Door, Proprietorship

Building materials Window &
furnitures
2. Cold Storage 1 5 5 0.65 21.35 DCDF
3. Agricultural 3 5 5 0.17 0.23 Proprietorship
Implements
4. Welding work 1 2 2 0.05 0.09 -do-

5. General Engineering 8 17 9 0.72 1.32 -do-

Washing Shop 1 4 2 0.17 0.39 -do-

6.
7. Tobbaco 1 2 2 0.09 0.13 -do-

1 3 3 0.15 0.35 -do-

8. Biscuits
9. Printing Press 4 22 22 0.37 1.48 -do-
10. Sawing of Timber 2 11 3 0.18 2.43 -do-

Edible Oil 28 34 28 2.87 9.34 -do-

11.
12. Ice Candy 3 11 3 0.39 1.05 -do-
13. Candle 3 17 7 0.16 0.18 -do-
14. Grinding Masala 3 5 3 0.09 0.37 -do-
15. Steel Box 3 11 . 6 0.17 0.79 -do-
16. Detergent Powder 1 3 3 0.15 O.33 -do-
17. Leather shoes 2 4 4 0.13 0.25 -do-
18. Battery Reconditioner 4 8 4 0.13 0.17 -do-

19. Auto Repairing 3 6 3 0.19 0.26 -do-

20. Mangrob- tile 1 14 14 0.53 0.55 -do-

21. Readymade Garment 7 15 15 0.37 0.73 -do-

22. Chura Udyog , 1 2 2 0.07 0.18 -do-
23. Rice Mill 1 5 5 8.11 26.45 -do-
24. Cement Jally 1 3 3 0.09 0.13 -do-

25. Radio TV Repairing 8 11 8 0.33 0.43 -do-

26. Fabrication 5 14 5 0.39 0.49 -do-

27. Electric Repairing 1 2 2 0.17 0.15 -do-
Watch Repairing 1 2 2 0.09 0.17 -do—
28.
29. Cycle Repairing 1 2 2 0.07 0.11 —do—
76
 Appendix 2.19

Existing Small Industries in Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of the Tehsil:

Dostpur Kadipur

Sl. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Sawing of Timber 2 10 5 0.33 1.20 Proprietor-

ship
2. General Engineering 5 17 9 0.23 1.35 Repairing -do-
& service
3. Candlework 2 5 5 0.15 0.13 -do-
4. Kankar Lime 2 10 4 0.67 1.73 -do-
5. Edible Oil 20 33 20 3.21 6.,73 Mastard Oil -do-
6. Ice Candy 3 18 6 0.45 1.05 -do-
7. Wooden furniture 9 15 15 0.38 0.47 Door, Window
Building material & Furniture -do-
8. Leather Goods 2 6 6 0.37 0.,17 Shoes, Chappals-do-
9. Fabrication work 11 33 22 1.23 2..87 Gare, Gril., -do—
jally
10. Printing Press 1 5 5 0.17 0..47 -do-
11. Electric Repairing 3 ! 6 6 0.25 0..49 -do-
12. Battery charger 1 2 2 0.05 0,.19 -do-
13. Steel Almira 1 3 3 0.21 0..43 -do-
14. Radio Repairing 6 12 12 0.14 0.21 -do-
15. Cement Jally 2 6 4 0.34 0 .19 -do-
16. Automobile 6 18 18 0.59 0.85 -do-
Repairing
17. Granding of Masala 2 4 4 0.13 0.33 -do-
18. P.V.C. Footwear 1 5 3 0.97 2.32 -do-
19. Bakery 1 5 5 0.04 0.18 -do—
20. Watch Repairing 1 3 3 0.03 0.13 -do—
21. Cycle Repairing 1 2 2 0.02 0.05 -do-
22. Plastic Container 1 2 2 0.03 0.17 -do-

77
 Appendix 2,20

Existing Small Industries in Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of t h e T e h s i l :

Kadipur

Sl. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Wooden Furniture 9 14 14 0.37 0.45 Door,Window Proprietor

& Building materials Furniture ship.
2. General Engineering 8 16 10 0.39 1.43 Welding -do—
Mechanics
etc.

3. Printing Press 2 11 11 0.32 0.92 Paper -do-

printing
4. Brick Klin 1 30 5 1.25 0.85 -do-
5. Readymade Garments 3 6 6 0.13 0.09 -do-
6. Edible Oil 3O 36 30 2.25 4.75 Mustard -do-
oil seeds
pressing
7. Sawing Timber 3 12 6 0.37 1.35 -do-
8. Candle 1 2 2 0.06 0.03 -do-
9. Automobile 4 9 9 0.29 1.53 -do—
Repairing
10. Cement Jally 4 12 12 0.33 0.49 Cement jally,-do-
gamla
11. Steel Box 2 6 6 0.23 0.29 . -do—
12. Shurki 1 5 2 0.33 1.19 -do-
13. Cycle Repairing 1 2 2 0.02 0.03 -do-
14. Radio Repairing 5 9 6 0.19 0.23 -do-
15. Fabrication work 3 13 9 0.37 0.43 -do-
16. Watch Repairing 2 4 0.03 0.15 -do-
17. Electric Repairing 1 2 2 0.09 0.25 -do-

78
 Appendix 2.21

Existing Small Industries in Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of the Tehsil:

Akhand Nagar Kadipur

Sl. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Brick Klin 1 46 5 1.25 2.15 Brick Partnership

2. Sawing of timber 1 5 5 0.15 0.75 Sawing of Proprietor-
timber ship

3. Edible Oil 11 21 11 0.99 3.07 Pressing -do-

of Mastard
seed

4. Wood and building 5 11 11 0.37 0.27 -do-

materials

5. Leather Shoes 1 2 2 0.05 0.09 —do—

6. Hosiery 4 2 0.23 0.45 Gangi -do-
7. Fabrication 2 6 6 0.11 0.15 Gate, -do-
jally etc.

8. Readymade 1 2 0.05 0.10 -do-

Garments
9. Mangrob Tile 1 15 15 0.49 0.73 -do-
10. Cycle Repairing 1 1 1 0.03 0.06 -do-
11. Rice Milling 3 9 3 0.43 1.33 -do-

79
 Appendix 2.22

Existing Small I n d u s t r i e s in Different Blocks of Sultanpur D i s t r i c t .

Name of the Block: Name of the Tehsil:

Pratappur Kadlpur

Sl. Name of the No .of No .of No .of Work- Fixed Products/ Type of
No. enterprise unit people people ing capital Service Proprie-
employed skilled capital (lakhs) torship
(lakhs)

1. Brass U t e n s i l 1 3 3 0.15 0.49 Proprietor-

ship
2. Wood Furniture and 7 15 15 0.43 0.49 Door, window -do-
Building materials Furniture
3. Edible Oil 14 30 14 1.49 3.43 Mustard Oil -do-
4. Rice Mill 1 5 2 0.15 0.63 -do-
5. Fabrication work 3 7 5 0.21 0.27 Grill,Gate -do-
jally
6. Readymade Garment 6 12 12 0.19 0.43 -do-
7. Ice Candy 2 11 4 0.31 0.77 -do-
8. Printing Press 1 5 5 0.09 0.23 Printing -do-
paper
9. Genetal Engineering 5 17 17 0.35 0.75 Repairing & -do-
Services
10. Shurki 2 13 13 0.39 0.79 —do—
11. Steel Box 2 4 4 0.23 0.37 -do-
12. Automobile Services 3 5 5 0.17 0.41 -do-
13. Leather Goods 2 4 4 0.09 0.11 Leather shoes -do-
chappel
14. Cycle Repairing 2 4 4 0.07 0.13 -do-
15. Radio Repairing 7 12 9 0.37 0.43 -do-
16. Biscuits 1 3 3 0.16 0.37 —db-
17. Electric Repairing 2 4 4 0.15 0.32 -do-
18. Cement Jally 1 3 3 0.10 0.15 -do-

80
 PROJECT PROFILES

(ALL THE COSTS AND PRICES QUOTED IN THE PROJECT

PROFILES ARE SUBJECT TO CHANGE AS THERE IS ALL
THE TIME A MOUNTING INFLATIONARY PRESSURE ON
THE GENERAL LEVEL OF PRICES.)
 S/l.l

S/1. Profile for a Wheat Milling Factory(Food Industry)

I. Product and its Uses:

Products of the roller wheat milling are flour, maida, suji

and the bran. As is well known, flour is consumed in many forms;
the largest consumption is in the form of chapatis. Maida is
consumed by the confectioneries, bakeries and the household,
Sooji (Rawa) is used by the confectioners, bakers, restaurants,
hoteliers etc. The wheat bran is a by-product of roller mill and
is used by the animal feed industry.

II. Flour Market Status and Potential for a Roller Flour Unit:

Milling of wheat into flour is one of the important process-

ing operations. The typical wheat production, storage, marketing
and consumption practices and other techno-economic consideration
in India have given rise to mills of indigenous designs. Power
operated disc mills (chakkis) are one of them. The milling of wheat
is still largely (about 80%) done in Chakkies, in the country.

With the latest production trends of wheat and changes in the

structure of industry, manufacturers have to cater to the special
needs of the small scale sector. New problems have arisen in the
wake of tremendous increase in wheat production. The mandis are
overcrowded in season. The concentration of large stock of food
grains, acquired in massive procurement operations in Northern
India, puts great strain on the movement of required quantities
of wheat to different areas. Roller Flour mills which are the
bulk indentors of wheat can play a vital role in these circumstances,

Bakery and biscuit and confectionery industry is developing

with tremendous pace in India. The requirement for flour by the
bakery industry alone, has been estimated at around 21 million
tonnes by 1990. This further necessitates the setting up of
a large number of modern roller flour mills.

III. Licensing Policy:

As per the notification dated 8th August 1986 issued by the

Govt. of India, the roller flour mill Industry has been exempted
from the licensing provisions:

81
 S/1.2

(i) The undertaking may not be located

(a) Within the standard urban area limit (as determined

the 1981 census of city having population of more
than one million) or,

(b) Within the municipal limits of a city with a

population of more than 5 lakhs as in 1981 census.

(ii) The industrial undertaking does not fall within

the purview of the Monopolies Restrictive and Trade practices Act
1969 or the FERA 1973.

IV. Production Target(Per A n n u m ) ;

The production target for the small scale sector is as

under:

(a) 9600 M.T. Per Annum,which will be increased to the

tune of 5% everynext year till it reaches 13500 M.T. per annum.

(b) Value Rs. 28454400.00 per annum in the beginning.

V. Basis and Presumption;

The above target is based on the following assumption:

1. The capacity of a plant is 45 M.T. per day. However in the

beginning only 71% of the capacity utilization could be planned,
thus covering an extension plan of 29% of the existing production
without replacing the machinery and equipment.

2. The working schedule, is one shift per day for 300 days

per annum.

VI. Production Details and the Process of Manufacture:

steps: The production process in brief consists of the following

1. Cleaning of wheat
2. Conditioning/tempering of wheat
3. Bran removal
4. Grinding and sieving
5. Packing.

82
 S/1.3

The wheat, on arrival at the mill/ is first passed

through a separator, to remove course materials like straw,
speads etc. Then it is passed to an aspirator which lifts of
lighter impurities disc separator then removes larger or
smaller materials and accepts individual wheat grains. The
stream of wheat then passes over a magnetic separator, that
pulls out iron steel pieces. The wheat is then allowed to
pass through a water washing unit, where high speed roters
spin the wheat in a water bath. Excess water is thrown out
by centrifugal force. Stones drop to the bottom and are
removed, whereas lighter materials float off leaving only the
clean wheat.

Tempering is a process in which moisture is added. It

aids in the separation of bran from the endosperm and helps
provide controlled amount of moisture and temperature throughout
the milling process. The dampened wheat is held in a bin for a
prescribed period from 8 to 24 hours. With 16% moisture content
the grain is passed through a scouring aspirator as a final
cleaning step. From the scouring aspirator machine, the wheat
flows to a grinding bin or hopper from which it is fed in
continuous controlled stream into the mill itself.

First the grain is passed between horizontal rollers called

the "breakrolls". These rollers are fluted and the upper
roller revolves with more speed as compared to the lower one. ,
The grain gets broken here.

The broken particles of wheat then pass to a sifter

where a series of vibrating bolting cloths or screen separate
the larger from the smaller particles.

The 'scalped' fractions and particles of endosperm

graded by size are carried to separate purifiers where a
controlled flow of air lifts off bran particles and bolting
cloth at the same time separates and grades coarser fractions by
size and quality.

Four or five additional break rolls with successively

finer corrugations and each followed by a sifter, usually
rework the course stocks from the sifters and reduce the wheat
particles to granular middlings as much free from bran as
possible. Germ particles being somewhat elastic will be flattended
by later passage through the smooth reduction rolls and can then
be easily separated and reduce the purified granular middlings
to flour.

83
 S/1.4

Maida, s u j i , Atta and bran thus obtained are collected

separately in Jute bags of different specifications, and stored
at cool and dried place. Percentage yield from good quality
wheat are as follows:-

Maida 55%

Suji 5%

Atta 20%

Bran and refractories

etc. 20%

VII. Quality Control and Standard:

The Indian standards institution has prescribed ISI

specifications for some of the items which are as under:

Atta wheat IS : 1155-1968

Maida IS : 1009-1968
S u j i or Rawa IS : 1010-1968

Details of the requirements of fixed and working capital are

as under:-

FIXED CAPITAL
i

VIII. Land and Building:

(i) Land 50 meter x 40 meter

(ii) Building
(a) Mill building area 400 sq.m.
(b) Finished products store
area 500 sq.m.
(c) Office, lab etc. 100 sq.m.

1000 sq.m.

(iii) Misc. civil works(Tubewell,

over headtank,boundry wall
etc.) L.S.
Total Land building construction & Civil
work Cost Rs. 11,53,200.00
84
 S/1.5

IX. Machinery and Equipment;

(Rs. )
(A) Main Machinery of Wheat Cleaning
and Tempering section:-

(i) Receiving reel machine One

(ii)Separator-Aspirator 6
Tons cap Two
(iii)Scourer
(iv) Combined washer,whizzer

and stoner One

(v) Cater Disc separator One

(vi) Bucket Damper One

(vii)Brush Machine One

(viii)Spray Damper One

(ix) Magnet Four

B. Main Machinery of

Milling Section:-

(i) Double Roller Mills

Size (size 250 x 100 mm, without

chilled cast iron rolls) Six
(ii) Chilled cast iron rolls Twenty four

(iii) Plan sifter(with 8 sections fitted

with 16 sieves) Two
(iv) Double purifier Two
(v) Bran Finisher caps 600 kg hrs
(vi) Arc Beacher(with all accessories) One

8S
 : S/1.6
(Rs)
C. Misc. pneumatic conveying system
(for milling section) only consisting
of 16 lifts) L.S.
D. Elevators, worm conveyors fans
cyclones, air seals etc. L.S.

E. Gravity pipes, spouting,exhaust

Trunking, Hoppers L.S.

F. Weighing Machine Two

G. Testing equipments L.S.

Cost of machinery and equipment

Electirifcation and installation

Charges @ 10% of cost of Machinery
and equipment Total cost of Machinery
and equipment.

30,03,000.00

X. Office Furniture and Equipments;

Cost of office furnitures and

Misc. equipment L.S,
Telephone installation L.S,

72,000.00

WORKING CAPITAL:

XI. Staff and Labour

Administrative and Supervisory (Rs.)
(per month )

1. Manager 1

2. Accountant cum cashier 1

86
 S/l. 7

(Rs.)
3. Godown Keeper 1

4. Clerk cum typist 1

5. Peon 1
6. Chawkidar 1

1 0 , 6 2 0 . 00

Technical skilled and unskilled:

1. Miller 1

2. Lab chemist 1

3. Mechanic 1

4. Carpenter 1

5. Operator 2

6. Fitter
2
7. Skilled workers is
5
8. Unskilled workers
12

25,860.00

Perquisites @ 15% of the

salary

Total Salary
41,952.00
XII. Raw Material (P.M.);
(i) Wheat 800 MT.

(ii) Packaging material gunny

bags etc.

20,46,000.00

87
 S/1.8
(Rs.)
XIII. Utilities (P.M):
Power
Water
Lubricant, cotton waste etc.

7,800.00

XIV. Other Expenses:

1. Postage and stationery

2. Telephone
3. Consumable store
4. Laboratory consumable
5. Transport charges
6. Misc.

10,320.00

XV. Marketing Expenses(P.M.)

Advertisement and publicity 1,800.00

XVI. Repair and Maintenance(P.M.)

At the rate of 5% of the cost of

Machinery and equipment per annum

Working Capital(P.M.)
1. Salary and wages 41,952.00

2. Raw materials 20,46,000.00

3. Utilities 7,800.00

4. Other expenses 10,320.00

5. Marketing expenses 1,800.00

6. Repair and Maintenance 11,374.80

21,19,246.80

88
 S/1.9
(Rs.)
XVII. Total Capital Investment

1. Fixed capital 42 , 2 8 , 2 0 0 . 0 0

2. Working capital(two months basis) 42 . 3 8 . 4 9 3 . 6 0

84 , 6 6 , 6 9 3 . 6 0

XVII. Cost of Production(Per annum)

1. Total recurring expenditure

per annum.

2. Depreciation on building @ 50%

of expenditure of building
construction and other civil work
3. Depreciation on Machinery and
equivalent @ 10% of the investment
of plant and machinery.
4. Depreciation on office equipment
and furniture @ 10%

5. Interest on total capital investment

@ 15% per annum

2,70,55, 986. 40

XIX. Total Sales(Per Annum)

Qty. in M.T. Rate per Value

1. Maida 52 80

2. Suji 480
3. Atta 1920
4. Bran 1728

2,84,54,400.00

89
 S/1.10.

XX. Profitability

1. Profit on sale 13,98,414.00

2. % profit on sale 4.9%

3. Profit on Capital investment 16.3%

*
XXI. Break - Even Point 57.0%

XXII. Names and Addresses of Machinery and Equipment Suppliers

1. M/s. Mukul Industries

C/o M/s. Kishan Flour Mills,
Railway Road,
Meerut.

2. M/s. Food Imp. Agencies

401, Akash Deep,
Barakhamba Road,
New Delhi-110001.

3. M/s. Karnataka Implements and Machineries Ltd.

Mysore Road,
Bangalore - 560026.

90