PROJECT REPORT

Of

CAMPHOR TABLET

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Camphor tablet.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : [email protected]
Contact : +91 7526000333, 444, 555
1. INTRODUCTION

CAMPHOR TABLET (KAPOOR)

Camphor is a white, crystalline substance with a strong scent and pungent

taste. Camphor is a flammable, waxy, and transparent with a pleasant odor,
produced from distillation of wood and bark of the camphor tree which is
predominantly found in Asia. In addition to its natural origin, camphor can
also be produced synthetically from turpentine oil. Globally, rising demand
for camphor ointments used for treating chest congestion, growth in food
industry owing to growing population, and increasing demand from the
pharmaceutical industry are the prime growth drivers of camphor market. In
addition, the camphor of turpentine oil derived from rosine can be
synthesized. Properties of sublimation give its various uses.

2. MARKET POTENTIAL:

India is a vast country and the Indian people follow various religions, speak
different languages and follow different customs and traditions. In spite of
this diversity, one thing is common among all Indians is they are all deeply
religious and practice their religious activities on daily basis. So depending
upon their belief, practice method and convenience, almost all the people
use any one or two from agarbatti(incense sticks), candles or
Kapoor(camphor tablets). This itself speaks volumes of the paramount
importance Agarbatti, candles and Kapoor has. Besides, they are also used
as air- freshener, and illumination.
In addition, on-going research and development activities to develop the new
application scope for camphor and rising population in emerging economies
such as China, India and others will create new opportunities for camphor
market.
Camphor Tablets market was valued at US$ 93.9 Mn in 2016 and is
expected to reach US$ 145.6 Mn by 2022, growing at a CAGR of 7.6% during
the forecast period 2016-2022. Food is also expected to fuel demand for
growth of camphor tablets during the forecast period from 2016 to 2022.

3. PRODUCT DESCRIPTION

3.1 PRODUCT BENEFITS & USES

 Camphor tablets are used for wide range of medical properties as it

helps reduce pain and swelling, helps relax worn out muscles and
reduces congestion and cough.
 They are used in manufacturing various medicines. Growing demand
from the pharmaceutical industry is therefore the major factor driving
the growth of camphor tablets in the market.
 High consumption of camphor tablets for religious rituals in India is
another factor boosting market growth for camphor tablets. Camphor
 is believed to be holy and sacred stuff which is offered to god for thanks
giving.
 Camphor tablets are also used in the agriculture to keep away insects
and moths. It is used as repellent in agriculture and even for household
activities to keep away reptiles and insects. Therefore steady demand
is observed for camphor tablets from the agriculture industry.
 Camphor tablets are also used in skin care products as it helps reduce
acne and pimples. Therefore, chemical industry makes use of camphor
in many skin care products and hair care products due to the beneficial
properties of camphor.
 Europe consumes camphor for preparation of almost all sweet dishes.
Camphor is the essential ingredient in the cookbooks of Arabians. In
India, camphor is used as an essence in some of the sweet dishes.

3.2 RAW MATERIAL

 Camphor powder and hexamine are the basic raw material for the
manufacturing of camphor tablet.

S.N. Particulars Price

1 Camphor Powder Rs. 800-1000 Per KG

2 Hexamine Rs. 130-180 Per KG

3 Sodium Rs. 20 -30

4 Wax Rs. 130-150

3.3 MANUFACTURING PROCESS

Camphor Tablet Production Process

All raw material are procured form vendor and stored in raw material
warehouse as per production requirement. The raw material are brought to
plant and camphor powder & hexamine are mixed manually in proportionate
quantity. Raw material is fed to the respective hopper utilizing appropriate
material handling equipment.

With the help of specific die attached in camphor tablet machine, camphor
tablets are manufactured.

After manufacturing of camphor tablet with the help of packaging machine,

final packaging of product is completed.

Dispatch of goods & sale of product in market.

4. PROJECT COMPONENTS

4.1 Land

Land required 500 square feet

Approximate rent for the same is Rs.10,000 per month.

4.2 Plant & Machinery

Manufacturing section

3 types of machines are available according to the Die

S.N. Item Description Rate

1 5 Die Kapoor making machine Rs. 60,000

(6-8 KG Per hour production capacity)

2 10-12 Die Kapoor making machine Rs. 90,000

 (12-15 KG Per hour production capacity)

3 20 Die Kapoor making machine Rs. 1,45,000

(20-25 KG Per hour production capacity)

Packaging Section

2 types of packaging machines are available

S.N. Item Description Rate

1 Manual tablet packaging machine 22,000

2 Automatic tablet packaging machine 1,55,000

Note:

 Cost of the machine is exclusive of GST

 This project report is prepared based upon 20 die Kapoor making
machine with automatic tablet packaging machine.
 Cost of Plant & machinery is (1,45,000+1,55,000)=3,00,000 +GST @
18%

4.3 Misc. Assets

S.N. Item Description Rate

1 Genset -5 KVA 40,000

2 Furniture and equipment’s 20,000

4.4 Power Requirement

The borrower shall require power load of 3 KVA which shall be applied with
Power Corporation. However, for standby power arrangement the borrower
shall also purchase DG Set.

4.5 Manpower Requirement

2-3 Manpower are required for the camphor tablet manufacturing unit.

Includes:

1 Skilled Labour

1 Unskilled Labour

1 Helper
5. FINANCIALS

5.1 Cost of Project

FINANCIAL ASSISTANCE REQUIRED

Term Loan of Rs. 3.73 lakh and Working Capital limit of Rs. 3.00 Lacs
(in Lacs)
Own Bank
COST OF PROJECT PARTICULARS AMOUNT Contribution Finance
10.00% 90.00%
Land & Building Owned /rented

Plant & Machinery 3.54 0.35 3.19

Furniture & Fixtures and Other
Assets 0.60 0.06 0.54

Working capital 3.33 0.33 3.00

Total 7.47 0.75 6.73

5.2 Means of Finance

MEANS OF FINANCE PARTICULARS AMOUNT

Own Contribution 0.75
Bank Loan 3.73
Working capital Limit 3.00

Total 7.47
5.3 Projected Balance Sheet

(in Lacs)
PROJECTED BALANCE SHEET

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Liabilities

Capital

opening balance 1.30 2.26 3.27 4.34

Add:- Own Capital 0.75

Add:- Retained Profit 1.80 2.96 4.01 5.07 6.05

Less:- Drawings 1.25 2.00 3.00 4.00 5.00

Closing Balance 1.30 2.26 3.27 4.34 5.39

Term Loan 3.31 2.48 1.66 0.83 -

Working Capital Limit 3.00 3.00 3.00 3.00 3.00

Sundry Creditors 2.52 2.97 3.44 3.93 4.46

Provisions & Other Liab 0.25 0.38 0.56 0.68 0.84

TOTAL : 10.38 11.09 11.93 12.78 13.69

Assets

Fixed Assets ( Gross) 4.14 4.14 4.14 4.14 4.14

Gross Dep. 0.59 1.10 1.53 1.90 2.21

Net Fixed Assets 3.55 3.04 2.61 2.24 1.93

Current Assets

Sundry Debtors 1.90 2.33 2.71 3.10 3.51

Stock in Hand 4.41 5.18 5.99 6.84 7.74

Cash and Bank 0.52 0.53 0.62 0.59 0.51

TOTAL : 10.38 11.09 11.93 12.78 13.69

5.4 Projected Cash Flow
(in Lacs)
PROJECTED CASH FLOW STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

SOURCES OF FUND

Own Margin 0.75

Net Profit 1.80 2.96 4.01 5.08 6.17

Depriciation & Exp. W/off 0.59 0.51 0.43 0.37 0.32

Increase in Cash Credit 3.00 - - - -

Increase In Term Loan 3.73 - - - -

Increase in Creditors 2.52 0.45 0.47 0.50 0.52

Increase in Provisions & Oth lib 0.25 0.13 0.19 0.11 0.17

TOTAL : 12.64 4.04 5.10 6.06 7.18

APPLICATION OF FUND

Increase in Fixed Assets 4.14

Increase in Stock 4.41 0.77 0.81 0.85 0.90

Increase in Debtors 1.90 0.44 0.37 0.39 0.41

Repayment of Term Loan 0.41 0.83 0.83 0.83 0.83

Drawings 1.25 2.00 3.00 4.00 5.00

Taxation - - - 0.01 0.12

TOTAL : 12.11 4.04 5.01 6.08 7.26

Opening Cash & Bank Balance - 0.52 0.53 0.62 0.59

Add : Surplus 0.52 0.00 0.09 (0.02) (0.09)

Closing Cash & Bank Balance 0.52 0.53 0.62 0.59 0.51
5.5 Projected Profitability

(in Lacs)
PROJECTED PROFITABILITY STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilization % 35% 40% 45% 50% 55%

SALES

Gross Sale

Camphor Tablet 56.86 70.01 81.18 92.96 105.37

Total 56.86 70.01 81.18 92.96 105.37

COST OF SALES

Raw Material Consumed 50.40 59.33 68.75 78.68 89.14

Electricity Expenses 0.18 0.19 0.21 0.23 0.26

Depreciation 0.59 0.51 0.43 0.37 0.32

Labour 1.80 1.98 2.18 2.40 2.64

Repair & maintennace 0.71 0.88 1.01 1.16 1.32

Consumables 0.51 0.63 0.73 0.84 0.95

Packaging Charges 0.45 0.56 0.65 0.74 0.84

Cost of Production 54.64 64.07 73.96 84.42 95.46

Add: Opening Stock /WIP - 2.73 3.20 3.70 4.22

Less: Closing Stock /WIP 2.73 3.20 3.70 4.22 4.77

Cost of Sales 51.91 63.60 73.47 83.90 94.91

GROSS PROFIT 4.95 6.41 7.71 9.06 10.47

staff charges 0.60 0.66 0.73 0.80 0.88

Interest on Term Loan 0.33 0.29 0.21 0.13 0.04

Interest on working Capital 0.30 0.30 0.30 0.30 0.30

Rent 1.20 1.32 1.45 1.60 1.76

selling & adm exp 0.71 0.88 1.01 1.16 1.32

TOTAL 3.14 3.45 3.70 3.99 4.30

NET PROFIT 1.80 2.96 4.01 5.08 6.17

Taxation 0.01 0.12

PROFIT (After Tax) 1.80 2.96 4.01 5.07 6.05

5.6 Production and Yield

COMPUTATION OF PRODUCTION OF Camphor Tablet

Items to be Manufactured

Camphor Tablet

Machine capacity per Hour 20 KG

Operational Capacity per hour (Taken) 10 KG

Total production per day 80 KG

machine capacity per annum 24,000 KG

Wastage 5% of input

Final output 22,800 KG

Camphor Tablet Packets

1 packet weight 100 Grams

Total Camphor Tablet Packets in 1 KG 10 Packets

Total Camphor Tablet production per Annum 228,000 Packets

Production of Camphor Tablet

Production Capacity Packets

1st year 35% 79,800
2nd year 40% 91,200
3rd year 45% 102,600
4th year 50% 114,000
5th year 55% 125,400

Raw Material Cost

Year Capacity Rate Amount

Utilization (per KG) (Rs. in lacs)

1st year 35% 600.00 50.40

2nd year 40% 618.00 59.33

3rd year 45% 636.54 68.75

4th year 50% 655.64 78.68

5th year 55% 675.31 89.14

5.7 Sales Revenue

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 3,990 4,560 5,130 5,700

Production 79,800 91,200 102,600 114,000 125,400

Less : Closing Stock 3,990 4,560 5,130 5,700 6,270
Net Sale 75,810 90,630 102,030 113,430 124,830
sale price per Packet 75.00 77.25 79.57 81.95 84.41
Sales (in Lacs) 56.86 70.01 81.18 92.96 105.37
5.8 Working Capital Assessment
(in Lacs)
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Finished Goods

2.73 3.20 3.70 4.22 4.77

Raw Material

1.68 1.98 2.29 2.62 2.97

Closing Stock 4.41 5.18 5.99 6.84 7.74

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD

Particulars Amount Own Margin Bank Finance

Finished Goods & Raw Material 4.41

Less : Creditors 2.52

Paid stock 1.89 10% 0.19 90% 1.70

Sundry Debtors 1.90 10% 0.19 90% 1.71

3.79 0.38 3.41

WORKING CAPITAL LIMIT DEMAND ( from Bank) 3.00

2nd Method
PARTICULARS 1st year 2nd year

Total Current Assets 6.83 8.04

Other Current Liabilities 2.77 3.34

Working Capital Gap 4.06 4.70

Min Working Capital

25% of WCG 1.02 1.18

Actual NWC 1.06 1.70

item III - IV 3.05 3.53

item III - V 3.00 3.00

MPBF (Lower of VI & VII) 3.00 3.00

5.9 Power, Salary & Wages Calculation

Utility Charges (per month)

Particulars value Description

Power connection required 3 KWH

consumption per day 24 units

Consumption per month 600 units

Rate per Unit 7 Rs.

power Bill per month 4,200 Rs.

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Skilled (in thousand rupees) 9,000 1 9,000

Unskilled (in thousand rupees) 6,000 1 6,000

Total salary per month 15,000

Total annual labour charges (in lacs) 1.80

BREAK UP OF Staff CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary

Helper 5,000 1 5,000

Total salary per month 5,000

Total annual Staff charges (in lacs) 0.60

5.10 Financial Ratio Analysis

CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 2.39 3.47 4.44 5.45 6.49

Interest on Term Loan 0.33 0.29 0.21 0.13 0.04
Total 2.73 3.76 4.65 5.58 6.53

REPAYMENT
Instalment of Term Loan 0.41 0.83 0.83 0.83 0.83
Interest on Term Loan 0.33 0.29 0.21 0.13 0.04

Total 0.75 1.12 1.04 0.96 0.87

DEBT SERVICE COVERAGE RATIO 3.65 3.35 4.48 5.84 7.48

AVERAGE D.S.C.R. 4.96
5.11 Other Financial Analysis
(in Lacs)
COMPUTATION OF DEPRECIATION
Description Plant & Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance - - -

Addition 3.54 0.60 4.14

Total 3.54 0.60 4.14

Less : Depreciation 0.53 0.06 0.59

WDV at end of Year 3.01 0.54 3.55

Additions During The Year - - -

Total 3.01 0.54 3.55

Less : Depreciation 0.45 0.05 0.51

WDV at end of Year 2.56 0.49 3.04

Additions During The Year - - -

Total 2.56 0.49 3.04

Less : Depreciation 0.38 0.05 0.43

WDV at end of Year 2.17 0.44 2.61

Additions During The Year - - -

Total 2.17 0.44 2.61

Less : Depreciation 0.33 0.04 0.37

WDV at end of Year 1.85 0.39 2.24

Additions During The Year - - -

Total 1.85 0.39 2.24

Less : Depreciation 0.28 0.04 0.32

WDV at end of Year 1.57 0.35 1.93

 REPAYMENT SCHEDULE OF TERM LOAN
Interest 10.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance

1st month - 3.73 3.73 - - 3.73

2nd month 3.73 - 3.73 0.03 - 3.73
3rd month 3.73 - 3.73 0.03 - 3.73
4th month 3.73 - 3.73 0.03 3.73
5th month 3.73 - 3.73 0.03 3.73
6th month 3.73 - 3.73 0.03 3.73
7th month 3.73 - 3.73 0.03 0.07 3.66
8th month 3.66 - 3.66 0.03 0.07 3.59
9th month 3.59 - 3.59 0.03 0.07 3.52
10th month 3.52 - 3.52 0.03 0.07 3.45
11th month 3.45 - 3.45 0.03 0.07 3.38
12th month 3.38 - 3.38 0.03 0.07 3.31

0.33 0.41
2nd Opening Balance

1st month 3.31 - 3.31 0.03 0.07 3.24

2nd month 3.24 - 3.24 0.03 0.07 3.17
3rd month 3.17 - 3.17 0.03 0.07 3.11
4th month 3.11 - 3.11 0.03 0.07 3.04
5th month 3.04 - 3.04 0.03 0.07 2.97
6th month 2.97 - 2.97 0.02 0.07 2.90
7th month 2.90 - 2.90 0.02 0.07 2.83
8th month 2.83 - 2.83 0.02 0.07 2.76
9th month 2.76 - 2.76 0.02 0.07 2.69
10th month 2.69 - 2.69 0.02 0.07 2.62
11th month 2.62 - 2.62 0.02 0.07 2.55
12th month 2.55 - 2.55 0.02 0.07 2.48
0.29 0.83
3rd Opening Balance

1st month 2.48 - 2.48 0.02 0.07 2.42

2nd month 2.42 - 2.42 0.02 0.07 2.35
3rd month 2.35 - 2.35 0.02 0.07 2.28
4th month 2.28 - 2.28 0.02 0.07 2.21
5th month 2.21 - 2.21 0.02 0.07 2.14
 6th month 2.14 - 2.14 0.02 0.07 2.07
7th month 2.07 - 2.07 0.02 0.07 2.00
8th month 2.00 - 2.00 0.02 0.07 1.93
9th month 1.93 - 1.93 0.02 0.07 1.86
10th month 1.86 - 1.86 0.02 0.07 1.79
11th month 1.79 - 1.79 0.01 0.07 1.73
12th month 1.73 - 1.73 0.01 0.07 1.66
0.21 0.83
4th Opening Balance

1st month 1.66 - 1.66 0.01 0.07 1.59

2nd month 1.59 - 1.59 0.01 0.07 1.52
3rd month 1.52 - 1.52 0.01 0.07 1.45
4th month 1.45 - 1.45 0.01 0.07 1.38
5th month 1.38 - 1.38 0.01 0.07 1.31
6th month 1.31 - 1.31 0.01 0.07 1.24
7th month 1.24 - 1.24 0.01 0.07 1.17
8th month 1.17 - 1.17 0.01 0.07 1.10
9th month 1.10 - 1.10 0.01 0.07 1.04
10th month 1.04 - 1.04 0.01 0.07 0.97
11th month 0.97 - 0.97 0.01 0.07 0.90
12th month 0.90 - 0.90 0.01 0.07 0.83
0.13 0.83
5th Opening Balance
1st month 0.83 - 0.83 0.01 0.07 0.76
2nd month 0.76 - 0.76 0.01 0.07 0.69
3rd month 0.69 - 0.69 0.01 0.07 0.62
4th month 0.62 - 0.62 0.01 0.07 0.55
5th month 0.55 - 0.55 0.00 0.07 0.48
6th month 0.48 - 0.48 0.00 0.07 0.41
7th month 0.41 - 0.41 0.00 0.07 0.35
8th month 0.35 - 0.35 0.00 0.07 0.28
9th month 0.28 - 0.28 0.00 0.07 0.21
10th month 0.21 - 0.21 0.00 0.07 0.14
11th month 0.14 - 0.14 0.00 0.07 0.07
12th month 0.07 - 0.07 0.00 0.07 -

0.04 0.83

DOOR TO DOOR 60 MONTHS

MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
6. LICENSE & APPROVALS

For Proprietor:
 Obtain the GST registration.
 Additionally, obtain the Udyog Aadhar registration Number.
 Choice of a Brand Name of the product and secure the name with
Trademark if required.

Implementation Schedule

S.N. Activity Time Required

(in Months)

1 Acquisition Of premises 1

2 Procurement & installation of Plant & Machinery 1

3 Arrangement of Finance 1

4 Requirement of required Manpower 1

Total time Required (some activities shall run 2-3 Months

concurrently)
7. ASSUMPTIONS

Item Remarks

Sales Volume Increase Per Annum 5%

Sales Price Increase Per Annum 5%

Increase in Staff Salaries 10% Per annum

Increase in Utilities 10% Per Annum

Loan Period 5 years

Loan Installments Monthly

Financial Charges 10% per annum

Working Days Per annum 300 Days

 DISCLAIMER

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assume no financial liability to anyone using the content for any purpose. All the
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reflect the views of the industry which are drawn from various research material
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cost of the project or industry will have to be taken on case to case basis
considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is
intended for general guidance only and must not be considered a substitute for a
competent legal advice provided by a licensed industry professional. SAMADHAN
hereby disclaims any and all liability to any party for any direct, indirect, implied,
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