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This document outlines plans for starting an Ayurvedic medicine manufacturing plant in Delhi, India. It discusses the growing demand for Ayurvedic medicine in India and globally. The total projected cost for establishing the plant is approximately Rs. 49 lakhs. Funding will come from multiple sources, including a 15% subsidy, Rs. 24 lakhs from partner capital, potential angel investors, and a business loan. With expected annual recurring expenses of Rs. 72 lakhs and total costs of Rs. 82.52 lakhs, the projected annual profit is Rs. 16.5 lakhs, representing a 33.6% return on total capital investment.
This document outlines plans for starting an Ayurvedic medicine manufacturing plant in Delhi, India. It discusses the growing demand for Ayurvedic medicine in India and globally. The total projected cost for establishing the plant is approximately Rs. 49 lakhs. Funding will come from multiple sources, including a 15% subsidy, Rs. 24 lakhs from partner capital, potential angel investors, and a business loan. With expected annual recurring expenses of Rs. 72 lakhs and total costs of Rs. 82.52 lakhs, the projected annual profit is Rs. 16.5 lakhs, representing a 33.6% return on total capital investment.
This document outlines plans for starting an Ayurvedic medicine manufacturing plant in Delhi, India. It discusses the growing demand for Ayurvedic medicine in India and globally. The total projected cost for establishing the plant is approximately Rs. 49 lakhs. Funding will come from multiple sources, including a 15% subsidy, Rs. 24 lakhs from partner capital, potential angel investors, and a business loan. With expected annual recurring expenses of Rs. 72 lakhs and total costs of Rs. 82.52 lakhs, the projected annual profit is Rs. 16.5 lakhs, representing a 33.6% return on total capital investment.
Sachin Yadav Shalabh Agarwal Manufacturing Why Ayurvedic Medicine ? Increased emphasis on lifestyle and wellness, driven by a rise in non-communicable and chronic diseases, is driving the demand for Ayurveda in India, according to a report by Confederation of Indian Industry (CII) and PricewaterhouseCoopers (PwC). The global market for Ayurveda is also growing. The size of the global Ayurvedic market is expected to almost treble from $3.4 billion in 2015 to $9.7 billion by 2022. Where to install our plant for production and operation ? We will be establishing our unit in Delhi NCR, as we want to serve the market of Delhi and as we are from Delhi , it will be easy for us to manage operations. List of licenses required to start a manufacturing plant Complete manufacturing license (we will be doing both marketing and production). To manufacture Ayurvedic/Herbal products in India, we need a license from AYUSH and not from FSSAI. The Ministry of AYUSH is located at INA and The AYUSH Department of Delhi is located in Tibbia college, Karol Bagh. Project Cost 1) Building & construction 10,00,000 2) Product & Machinery 1500000 3) Furniture & Fixtures etc. 2,00,000 4) Staff & Labour 80000 (Per Month) 5) Raw material 5,00,000 (Per Month) 6) Other Expenses 20,000 (Per Month) Total Recurring Expenses = 80,000 + 5,00,000 + 20,000 = 6,00,000 (Per Month) For 4 Months = 4×60,0000 = 24,00,000 Total Cost = 1,00,000 + 15,00,000 + 24,00,000 Total Cost = 49,00,000 Cost of Production for 1 Year Recurring Expenses (600000 *12 ) = 72,00,000
Depreciation on plant and Machinery @ 10% = 1,50,000
Depreciation on Furnitures @10% = 20,000
Interest of TCI @18% = 8,82,000
Total Costs = 8252000
Profit @ 20% on Total Cost = 8252000 * 20 / 100 = 16,50,400 (Expected)
Percentage of profit on Total Capital Investment = 16,50,400/49,00,000 * 100 = 33.60%