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UNITED REFRESH NAPKIN

Pvt.Ltd.
PROJECT REPORT OF PAPER NAPKIN
Manufacturing 40,00,000 Paper Napkins (PN) ie 100 nos x 40,000 Pkts. Per
month (20 days).

RAW MATERIALS:

1. Tissue Paper Jumbo Rolls


2. Water Based Color
3. Nylon Printing Block
4. Polythene bag

MACHINERIES:

1. 30cm Single Size Double Track Paper Napkin Making Machine.


2. Stand up type 12 sealing machine
3. Hand operated 12 sealing machine
4. 300kg Platform Weighing Scale

PRODUCTION PROCESS:

Printing Embossing Folding Counting Cutting by fully automatic


machine.

Packing and Sealing will be done manually.

PROJECT COST FOR 40,00,000 PAPER NAPKINS PER MONTH

TOTAL COST OF THE PROJECT: Rs.

Advance for Factory Shed 2,00,000

Total cost of the Machinery 6,54,600

Production cost for 3 months (5,06,800 x 3) 15,20,400

Fixed Expenses for 3 months (1,20,000 x 3) 3,60,000

Reserve Fund 1,55,000

--------------------
Total Cost of the Project 28,90,,000

-------------------------

FUND PLANNING:

Share Capital 10,00,000

Loan for Machinery 4,90,000

Loan for Working Capital 14,00,000

----------------------

Total 28,90,000

-----------------------

TOTALL MACHINERY COST:

30cm Single Size Double Track Paper Napkin Making Machine

Double Embossing, Double color Printing, Automatic Folding,

Counting and Cutting. 6,25,000

300kg Platform Weighing Scale


12,500

Standup model 12 Sealing Machine


14,500

Hand operated 12 Sealing Machine


2,600

--------------------

Total (Including taxes)


6,54,600

----------------------

FIXED EXPENSES PER MONTH:

Salary for Manager (Managing Director) 25,000

Salary for Marketing Manager (Director) 20,000

Salary for Production Manager (Director) 15,000

Salary for Machine operator 20,000


Salary for Helper 10,000

Salary for Packing & Sealing girls 2nos x Rs.5,000


10,000

Salary for Night Watchman 5,000

----------------

Total salary per Month 1,05,000

Rent 20,000

Lighting Power 1,000

Office Expenses including stationery & T.A.


9,000

------------------

Total Fixed Expenses per Month 1,35,000

------------------

COST OF PRODUCTION FOR 40,00,000 PAPER NAPKINS PER MONTH

(20 days production per month)

Size: 30cm x 30cm GSM: 18 Printing : Single color.

So weight of the single paper napkin = 1.62 gms

Add wastage 5 % 0.08

-------------

1.7 gms

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Tissue paper roll cost is Rs 66 / kg

So Paper cost for 40,00,000 Paper Napkin 4,48,800

Printing Ink Rs. 2.5/1000 Paper Napkin 10,000

Packing Cover 40,000 nos @ Rs. 1.


40,000
Power per month 8,000

-------------

Total cost of production per month 5,06,800

---------------

PROFITABILITY:

Sale value of 40,00,000 Paper Napkins @ 20paise per napkin.


8,00,000

Less Delivery expenses @ 20paise per Pkt.


8,000
------------------

Net Sale Value 7,92,000

Less Cost of Production 5,06,800

-----------------

(Surplus per napkin 0.0713) 2,85,200

Less Fixed expenses 1,35,000

------------------

1,50,200

Less Bank interest @ 16% for 18,90,000 per month


25,200

------------------

Profit per month before tax 1,25,000

Less depreciation on Machinery @ 15% 8,182

------------------

Profit per month before tax 1,16,818

-------------------

ANALYSIS:

% of profit on Sales 14.6 %


% of profit on cost of production 23.05 %

% of profit on share capital per year 140%

Break Even point per month 23,61,599


Napkins

Break Even point per day (20 days production) 1,18,080


Napkins

Prepared by
Jananayagam.T

9380017104 /
7401504557