This document provides a project profile for manufacturing staple pins in India. It discusses the introduction and market potential of staples. The manufacturing process involves flattening wire and forming staples in pre-determined lengths. Annual production is targeted at 700 cartons of staple pins. The implementation schedule outlines activities from initial data collection to trial production over an 8 month period. Finally, the financial aspects include details of the land and building costs, machinery costs, pre-operative expenses, staffing costs, raw materials needs, and utility costs to operate the business on a monthly basis.
This document provides a project profile for manufacturing staple pins in India. It discusses the introduction and market potential of staples. The manufacturing process involves flattening wire and forming staples in pre-determined lengths. Annual production is targeted at 700 cartons of staple pins. The implementation schedule outlines activities from initial data collection to trial production over an 8 month period. Finally, the financial aspects include details of the land and building costs, machinery costs, pre-operative expenses, staffing costs, raw materials needs, and utility costs to operate the business on a monthly basis.
This document provides a project profile for manufacturing staple pins in India. It discusses the introduction and market potential of staples. The manufacturing process involves flattening wire and forming staples in pre-determined lengths. Annual production is targeted at 700 cartons of staple pins. The implementation schedule outlines activities from initial data collection to trial production over an 8 month period. Finally, the financial aspects include details of the land and building costs, machinery costs, pre-operative expenses, staffing costs, raw materials needs, and utility costs to operate the business on a monthly basis.
This document provides a project profile for manufacturing staple pins in India. It discusses the introduction and market potential of staples. The manufacturing process involves flattening wire and forming staples in pre-determined lengths. Annual production is targeted at 700 cartons of staple pins. The implementation schedule outlines activities from initial data collection to trial production over an 8 month period. Finally, the financial aspects include details of the land and building costs, machinery costs, pre-operative expenses, staffing costs, raw materials needs, and utility costs to operate the business on a monthly basis.
Government of India Ministry of Micro, Small and Medium Enterprises Br. M S M E Development Institute APIDFC Ltd. Building, C- Sector Itanagar (Arunachal Pradesh) – 791111 Ph. 0360 - 2291176 Email: [email protected] PROJECT PROFILE – STAPLE PIN
A. INTRODUCTION:
The term "stapling" is used for both fastening with straight or bent legs; however, when differentiating between the two, the term "tacking" is used for straight-leg stapling, while the term "stapling" is used for bent-leg stapling when being contrasted with "tacking". The legs of a staple can be allowed to protrude out the back side and folded over to provide greater binding than the friction of straight legs. Modern staples for paper staplers are made from zinc-plated steel wires glued together and bent to form a long strip of staples. Staple strips are commonly available as "full strips" with 210 staples per strip. More expensive stainless steel staples which do not rust are also available. In India, manufacturing has been limited to mostly copper coated staples, which unfortunately rust fast. Also some white staples made from substandard wires have been in the market. Internationally, staples are often described as X/Y (e.g. 24/6 or 26/6), where the first number X is the gauge of the wire, and the second number Y is the length of the shank (leg) in millimeters. Some exceptions to this rule include staple sizes like No. 10. Common sizes for the home and office include: 26/6, 24/6, 24/8, 13/6, 13/8 and No. 10 for mini staplers. Common sizes for heavy duty staplers include: 23/8, 23/12, 23/15, 23/20, 23/24, 13/10, and 13/14.
Market Potential Staples are commonly considered to be a neat and efficient method of binding paperwork such as letters and documents in all areas of office business. This is predominantly because of the low cost and high availability of the staple, and because its small size does not detract from the content of the document.
The large staples found on corrugated cardboard boxes have folded legs, but they are applied from the outside and do not use an anvil; jaw-like appendages push through the cardboard alongside the legs and bend them from the outside. It is apparent that the staple pins are widely used in office business and hence can be sold easily in domestic market.
1 B. Technical Aspects Process of manufacture The process of making staple pins has been simplified with introduction of sophisticated fully Automatic Staple Pin Making Machines. The preformed round wire is fed to the machine which flattens it and produces the necessary staple pins in pre-determined lengths of 50 staple pins in each length. The formation of this length is assisted by the use of a special staple pin adhesive, also developed in India. The staple pin lengths are packed suitably with each packet containing 1000 pins. 20 of these packets are packed in a box and 40 of these packets are packed in cardboard carton.
2. Quality control and standards
The pins should be manufactured as per relevant Indian specification IS 4224:1972.
3. POLLUTION CONTROL:
These types of units are is not producing any effluents or any other polluting materials. Therefore pollution control measures are not taken into account.
4. ENERGY CONSERVATION NEEDS:
General awareness is to be created for economic use of electricity at all points. Capacitors may be used at suitable points for energy conservation. All machinery and equipment should be properly lubricated and maintained so that they consume less amount of power in use.
C. Production Target:
Annual Production of 700 cartons of staple pins
D. BASIS AND PRESUMPTION:
(i) The unit is expected to work at 75% efficiency on 8 hrs. Single shift basis for full capacity utilizations.
(ii) The full capacity utilisation will be achieved in three years. 70% in the first year followed by 85% in the next year and the 100% in subsequent years.
2 (iii) Labour and wages mentioned as per prescribed minimum wages and the proprietor is considered as a manager.
(iv) Interest considered @ 12% in the project provide for recurring and non-recurring investment.
(v) The cost of land, construction charges, cost of machinery and equipment, raw materials and consumables other expenses etc. initiated in the profile are based on the prices prevailing at the time of project preparation. Therefore, they are subject to necessary changes from time to time based on local conditions.
E. IMPLEMENTATION SCHEDULE:
Period Starting to Activity Completion Survey for collection of data in respect of demand, raw material, including power and fuel availability of 0 1 Month technology, pollution control Arrangement for margin money 0 1st Months Preparation of project document and registration and 2nd 1st other clearance Months Financial assistance 2nd 3rd Months Selection of site and development of land 3rd 4th months Make shift office 3rd 4th Months Purchasing of machines & recruitment of staff 4th 5th Months Construction of building & selection of machinery 5th 6th Months Installation of machinery & purchase of raw materials 6th 7th Months Trial production 7th 8th Months
F FINANCIAL ASPECT:
(i) Land & Building:
Land 250 sq.mtrs. @ Rs.60/- per sq.mtr.-- on rent = 15,000/- per month
3 (ii) Fixed Capital on Plant & Machinery:
Qty. Value Sl.No. Description Ind /Imported (Nos.) (Rs.) Automatic staple pin making machines with 1. Ind. electricals 6 17,70,000 2 Double ended Bench grinder cap 8" wheel Ind. 2 60,000 3. Common tools and measuring instruments Ind. 1 30,000 4. Spares and fixtures Ind. 1 10,000 5. Total 18,70,000 Office furniture, almirah, office instruments 6. L.S. etc. 40,000 Electrification & installation charges @ 10% 187000 7. of machinery cost 20,97,000 8. Total Plant & M/c Cost
1. Preformed wire (round wire)@ Rs. 70 per kg. 250 Kg 17,500 2. Adhesive @ Rs. 250 per ltrs. 110 Ltrs 27,500 3. Packing material/boxes LS 25,000 Total 70,000
III. Utilities (per month):
Units Rs. Power 1,200 4,800 Water L.S L.S 1,000
IV. Other Contingent expenses (P.M.):
SI.No. Description Values (Rs.)
1. Rent 15,000 2. Postage and stationery 1,000 3. Travelling and transport 5,000 4. Repairs and maintenance 3,000 5. Advertisement and publicity 3,000 6. Insurance 1,000 7. Consumable stores 5,000 8. Telephone charges 2,000 9. Selling expenses 7,000 10. Misc. expenditure 3,000 11. Total 45,000
V. Total recurring expenditure (per month):
1. Staff and labour 1,08,675 2. Raw material 70,000 3. Utilities 5,800 4. Other contingent expenses 45,000 Total 2,29,475
VI. Total working capital ( 2 months basis) Rs. 4,58,950
5 2. Total capital investment: 1. Machinery and equipment 21,38,940 2. Working Capital (for 2 Months) 4,58,950 Total 25,97,890
3. Financial Analysis:
a. Cost of Production: 1. Total recurring cost per year 27,53,700 2. Depreciation on plant and machinery @ 10% 1,87,000 3 Depriciation on Dies, Jigs & Fixtures @ 20% 8,000 4. Depreciation on office equipments @ 20% 8,000 5. Interest on total capital investment @ 12% 3,11,747 Total 32,68,447
b. Total Sales (per year):
Annual Production of 700 No's of cartons No.10 staple pin
By sale of 700 cartons @ Rs. 6,000/ carton Total Sales per annum = Rs. 42,00,000
c. Net Profit (per year) (Before Tax)
Profit = Total sales – cost of production = 42,00,000 - 32,68,447 = Rs. 9,31,553
d. Profit Ratio:= Net profit x 100 / Total turn over
= 9,31,553 x 100 / 42,00,000
= 22.18 %
e. Rate of Return: = Net profit x 100 / Total investment
= 9,31,553 x 100 / 25,97,890
= 35.86 %
6 f. Break Even Point: Fixed cost (per year): 1. Rent 1,80,000 2. Interest 3,11,747 Depreciation of machinery & equipments,tools @ 3. 10% 1,87,000 4. Depriciation on Dies, Jigs & Fixtures @ 20% 8,000 5. Depreciation of office equipment @ 20% 8,000 6. 40% of salaries and wages 5,21,640 40% of other expenses including utilities and 7. excluding rent 1,71,840 Total fixed cost (FC) Rs. 13,88,226
