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Model Project Profiles

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Model Project Profiles of Potential Industries in Tripura.

Model Project Profiles of Potential Industries in Tripura.


Prepared by: Society for Entrepreneurship Development, Indranagar, Agartala, West Tripura

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    Model Project Profiles Model Project Profiles Document Transcript

    • Model Project Profiles of Potential Industries in Tripura for Financeunder Prime Ministers Employment Generation Programme (PMEGP) INDEXSl. No. Project Title Page No. 1 Cane & Bamboo Furniture - 1 2 Mini Rice Mill - 7 3 Garment Manufacturing (Ladies/Children/Gents) - 12 4 Yarn Dyeing - 16 5 Nylon Mosquito Net Manufacturing - 22 6 Hawai Chappal Manufacturing - 27 7 Rubber Footwear Manufacturing - 33 8 Hot Water Bags & Ice Bags Manufacturing - 38 9 Public Aquarium - 44 10 Hatchery Unit (Poultry) - 49 11 Ornamental Fish - 54 12 M.S. Wire Netting - 60 13 General Engineering Workshop - 65 14 Well Rings / Kitchen Sink / Concrete Post - 70 15 Stone Crushing Unit - 75 16 Brick Plant (Traditional) - 80 17 Clay Brick Plant - 85 18 Fuel (Coal) Briquetting - 90 19 Gold Plating On Metallic Optical Frames And Jewellry - 95 20 Documentation Preparation Service - 102 21 Spice Grinding & Packaging - 107 22 Potato Chips Making - 112 23 Mini Oil Mill - 118 24 Bleached Dehydrated Ginger - 124 25 Beaten Rice - 129 26 Packaged Drinking Water - 134 27 Dairy & Milk Products - 140 28 Scented Supari Processing - 146 29 Mini Dal Mill - 150 30 Pineapple Processed Products - 155 31 Fruit Toffees - 161 32 Fruit Squashes & Juices etc. - 167 33 Manufacturing Looms & Accessories - 173
    • [Page - 1]A] Introduction: Cane and Bamboo products have always occupied an important position in the handicrafts sector. Cane & bamboo are renewable resources, grows widely and abundantly availably in the North Eastern Region. The products also have great demand in the international market. Over the years, rural artisans have imbibed wide range of skills in the manufacture of various items and the skills have been the skills have been passed from generations to generations. Assam and Tripura. Tripura a prominent place in cane and bamboo products both nationally as well as internationally.B] The Product: Cane is largely used for furniture making, whereas bamboo is used for making decorative items like lamp-stand, partition, screen, flower pots, basket, fans mats etc. In recent years, uses of cane furniture have considerably increased not only in middle class homes, hotels and offices but also among foreign tourist coming to N.E. Region. Most of the class hotels are using cane and bamboo items to give elegance and stylish traditional look to their interiors.C] Market Potential of the product: Though all the North Eastern States produce cane and bamboo items yet Assam, Tripura and some extent Arunachal Pradesh has a major contribution in the total production. The present share of only cane furniture is about 15 to 20 crores and out of which 2 crores are exported. NEHHDC, AGMC, ARTFED along with some private and involved in exporting of the products. Some of the products that are exported from the North East to internal as well as external markets are as follows: Basket ware, Cane furniture Mat & matting Decorative items. The countries where these products go are China, USA, Japan, French, West Germany, Italy, Netherlands, U.K., Switzerland, Austria etc. Hence there is considerable demand for the product in the national as well as international market. There is a potential of 15% grow every year. Based on the present production level of 20 crores per annum, it is envisaged that an additional 3 crore per annum production can come up. A typical unit can produce around 10 lakhs to 15 lakhs worth of items and an additional 10 to 13 such units can come up every year. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-2]D] Availability of Raw Material: Raw Material and Its Availability: The main raw materials required are canes of different varieties and bamboo. There is no dearth of raw materials in the N.E. Region including Tripura. Following is the approximate consumption of raw materials per month. Different types of cane : 2750 pcs. (e.g. Raidang, Jeng, Jatti) Bamboo : 500 pcs. Sital patti (for design) Sand paper, Nails, : L.S. Glass, varnish, Plywood, Kerosene oil, turpentine oil, Adhesive, Plastic taps, Gums etc.E] Production Process: The major process involved are – Selection of natural cane & bamboo for specific job work. Preparation of basic elements or members by bending length of whole cane to required shape. Fixing the members position by use of nails. Blending the wavered joints by length of split cane to cover visible nails and give additional rigidity. Scrapping & varnishing/painting where required.F] Suggested Installed Capacity: There are varieties of cane and bamboo products. A typical cane and bamboo furniture unit would be set up with the following product-mix. ITEMS Nos./Year 1 Decorative Sofa Set 50 2 Screeners 100 3 Single Chairs 200 4 Bamboo Basket 200 5 Shelves 100 6 Shelves with drawers 100 7 Dining Chairs 200 8 Murahs 200 9 Dining Tables 100 10 Divans (Deluxe) 50 11 Divans (Simple) 75 12 Police Lathis 800 13 Police Shields 400 14 Pot Stands 300 15 Cane Beds 100 16 Trolley 100 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page - 3]G] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 1200 Sq. Ft. @ Rs. 6.00 Lakh 2. Power 2 KW 3. Water 500 Ltrs / DayH] Machineries & Equipments required: Machines/Equipments Quantity (Nos) Amount Required (In Lakh Rs.) 1 Cane Splitting Machine 4 2 Blow Lamp 14 3 Hand drill 6 1.2 4 Pipes for blending 14 5 Planner 2 6 Other Misc. items LS [Hacksaw frames, knoves, Dao, Pliers, Hammers, Cane cutting scissors etc.] Total 1.2I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Own) 0.00 ii. Site Development: 0.60 iii. Building/Working Shed: 5.50 iv. Plant & Machineries: 1.20 v. Misc. Fixed Assets: 0.70 (Furnitures, Fixtures, electrification etc.) Total 8.00 vi. Preliminary & Pre-operative expenses: 0.45 vii. Margin for Working Capital @ 25% 1.21 Total amount of Fixed Capital required 9.66 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 1.09 ii. Finished goods [1 Month] 1.50 iii. Receivables [1 Month] 2.25 Total amount of Working Capital required 4.84 Total Fund Required for the Project: [1 + 2] Rs 14.50 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-4] 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 10.15 8.70 ii. Subsidy entitled: 3.63 5.08 iii. Own contribution @ 5% of Project Cost: 0.73 0.73 Total 14.50 14.50J] Annual Sales Forecasting: Items Qnty (Nos) Rate (Rs/Piece) Amount (Rs) 1 Sofa set (complete) 50 10000 500000 2 Screens 100 2000 200000 3 Single chair 200 800 160000 4 Bamboo basket 200 300 60000 5 Shelves 100 1000 100000 6 Shelves with drawers 100 2000 200000 7 Dining chairs 200 800 160000 8 Murahs 200 350 70000 9 Dining tables 100 2000 200000 10 Divans (Deluxe) 50 5100 255000 11 Divans (Simple) 75 2500 187500 12 Police lathis 800 150 120000 13 Police shields 400 400 160000 14 Pot sands 300 450 135000 15 Cane beds 100 4500 450000 16 Trolleys 100 200 20000 Total 2977500 Total Projected annual sale = Rs 29.775 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-5]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 29.78 34.03 38.28 38.28 38.28 2 Less Cost of Materials: 13.08 14.95 16.82 16.82 16.82 3 Gross Profit (1-2): 16.70 19.08 21.47 21.47 21.47 4 Less other operating expenses: i) Rent for Land: 0.00 0.00 0.00 0.00 0.00 ii) Salary for staff: 6.00 6.42 6.87 7.35 7.86 iii) Electricity and maintainance: 0.50 0.54 0.57 0.61 0.66 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 0.60 0.64 0.69 0.74 0.79 vi) Insurance and other misc. expenses: 0.20 0.21 0.23 0.25 0.26 Total of Sl. 4. 7.50 8.03 8.59 9.19 9.83 5 Profit before Depriciation, Interest and Taxes(3-4): 9.20 11.06 12.88 12.28 11.63 6 Less Depriciation on Fixed Assets: 0.80 0.80 0.80 0.80 0.80 7 profit before interest and taxes (5-6): 8.40 10.26 12.08 11.48 10.83 8 Less Interest payable on loan: 1.32 1.06 0.79 0.53 0.26 9 Profit before taxes (7-8): 7.08 9.20 11.29 10.95 10.5710 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 7.08 9.20 11.29 10.95 10.57 Percentage of Profit on Sale: 23.76 27.03 29.48 28.60 27.6112 Provision for repayment of loan: 2.03 2.03 2.03 2.03 2.0313 Retained Profit (11-12): 5.05 7.17 9.26 8.92 8.5414 Net Cash Accruals 5.85 7.97 10.06 9.72 9.34 [Depreciation added back with retained profit]15 Cumulated Net profit: 7.08 16.27 27.56 38.51 49.08 Pay-Back Period: 21 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 10.15 8.12 6.09 4.06 2.03 Proposed Repayment during the year: 2.03 2.03 2.03 2.03 2.03 Refundable loan at the end of the year: 8.12 6.09 4.06 2.03 0.00 Total Debt-Service [Interest+Repayment]: 3.35 3.09 2.82 2.56 2.29 Fund Available for Debt-Service: 9.20 11.06 12.88 12.28 11.63 Debt-Service Coverage Ratio: 2.75 3.58 4.56 4.80 5.07 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-6]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.725 ii) Loan from Bank: 10.150 iii) Increase in Subsidy: 3.625 iv) Profit Before Interest and taxes: 8.395 10.255 12.078 11.477 10.834 v) Depreciation added back: 0.800 0.800 0.800 0.800 0.800 Total 23.695 11.055 12.878 12.277 11.634 b) Uses of Fund: i) Increase in Fixed Assets: 8.000 ii) Preliminary Expenses: 0.450 iii) Margin for Working Capital 1.210 iv) Increase in Working Capital: 4.840 v) Decrease in Loan: 2.030 2.030 2.030 2.030 2.030 vi) Interest payable: 1.320 1.056 0.792 0.528 0.264 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 17.850 3.086 2.822 2.558 2.294 Opening Balance: 5.845 13.815 23.871 33.591 Surplus/Deficit Generated: 5.845 7.969 10.057 9.719 9.340 Closing Balance: 5.845 13.815 23.871 33.591 42.931N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.73 0.73 0.73 0.73 0.73 ii) Cumulated Net Profit: 7.08 16.27 27.56 38.51 49.08 Net Worth: 7.80 17.00 28.29 39.24 49.81 iii) Subsidy: 3.63 3.63 3.63 3.63 3.63 iv) Loan at Bank: 8.12 6.09 4.06 2.03 0.00 Total 19.55 26.71 35.97 44.89 53.43 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 9.66 8.86 8.06 7.26 6.46 Less depreciation on Fixed Assets: 0.80 0.80 0.80 0.80 0.80 i) Net Block: 8.86 8.06 7.26 6.46 5.66 ii) Working Capital: 4.84 4.84 4.84 4.84 4.84 iii) Cash balance: 5.85 13.81 23.87 33.59 42.93 Total 19.55 26.71 35.97 44.89 53.43 Total Investment: 14.500 14.50 13.18 12.12 11.33 10.81 Return on Investment: 48.80 69.80 93.09 96.61 97.82 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 2.120 1.856 1.592 1.328 1.064 Other Operating Expenses 60% 4.500 4.815 5.152 5.513 5.899 Total 6.620 6.671 6.744 6.840 6.962 BEP [in % of target business] 41.857 37.633 34.368 35.781 37.440 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: All the Machineries & Equipments required for the project are available in the Local Market Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page - 7]A] Introduction: The rice in North Eastern Region as well as in Tripura is considered to be the main diet both vegetarian and non-vegetarian. The unit proposes milling of paddy to produce rice. Since the traditional method is much time consuming and less productive, the Government has taken a policy decision to allow only mini rice mill instead of conventional huller mill.B] Market Potential of the product: Of the total population of about 32 lakh in the State of Tripura and taking an average per capita consumption of 12 kg. of rice per month, there is vast scope of mini modern rice mill units in the state of Tripura. The main raw materials namely, paddy is available throughout the state.C] Raw Material: Bulk of the paddy grown in the state which have paddy production about 5.5 lakh MT annually.D] Production Process: The main process steps are : i) Cleaning of dry paddy. ii) Milling iii) Dehusking and cleaning.E] Suggested Plant Capacity: Milling capacity : 400 kg. per hour. No.shift per day : 1 Working hours : 8 hours. Working days/year : 300 days. Annual production : 960 tons. Loss during dehusking : 6%. Net production. : 900 tons per year. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-8]F] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 1000 Sq. Ft. @ Rs. 2.20 Lakh 2. Power 20 KW 3. Water 500 Ltrs / DayG] Manpower Requirement: The unit proposed to employ 5 Nos. of both skilled & unskilled persons.H] Machineries & Equipments: Items Qnty (Nos) Amount (In Lakh Rs.) 1 Raja Rice Huller No.8 Complete 1 2 M.G.Rubber Roll Sheller Model Mini Super 2/DL6 with 1 Aspirator. 3 Crompton 20 HP 960 RPM Sq.cage TEFC electric 1 motor with (0.1) star delta starter and main switch 1. 4 Crompton power capacitor 10 KVAR 1 5 Volt and Amp meter 1 set 6 Motor Rail 36” 1 Pr. 3.00 7 V-Pully 8 x 4 C and 24 x 4 x C 1 set 8 V-Belt C-Sec @ Rs 650/set. 4 set 9 M.S.Shaft 63 mm dia @ Rs 620/- 6 Mtr. 10 Bearing Block and Socket @ Rs 680/-set. 4 set 11 W.I. Split pullies @Rs. 900/- 2 Nos. 12 Rubber Belt 4”x4 Ply, GY Thor @ Rs 162/meter 20 Mtr. 13 Belt Fastner @Rs 35/- 2 Doz. 14 Misc. equipment. LS Total 3.00I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Own) 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: 2.20 iv. Plant & Machineries: 3.00 v. Misc. Fixed Assets: 0.50 (Furnitures, Fixtures, electrification etc.) Total 5.70 vi. Preliminary & Pre-operative expenses: 0.15 Total amount of Fixed Capital required 5.85 2. Working Capital: (Rs. In Lakh) Since the unitj will do only job work, there will be no working capital requirements. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page - 9] 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 4.10 3.51 ii. Subsidy entitled: 1.46 2.05 iii. Own contribution @ 5% of Project Cost: 0.29 0.29 Total 5.85 5.85J] Annual Sales Forecasting: The current market milling price of paddy is Rs. 1700 per ton. Based on these prices, the annual sales realization of 900 ton rice is Rs 15.3 Lakh at 100% capacity utilization.K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 10.71 12.24 13.77 13.77 13.77 2 Less Cost of Materials: 0.00 0.00 0.00 0.00 0.00 3 Gross Profit (1-2): 10.71 12.24 13.77 13.77 13.77 4 Less other operating expenses: i) Rent for Land: 0.00 0.00 0.00 0.00 0.00 ii) Salary for staff: 2.40 2.57 2.75 2.94 3.15 iii) Electricity and maintainance: 0.10 0.11 0.11 0.12 0.13 iv) Office expenses (Stationary, Telephone etc.) 0.40 0.43 0.46 0.49 0.52 v) Advertising and Selling expenses: 0.05 0.05 0.06 0.06 0.07 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 3.05 3.26 3.49 3.74 4.00 5 Profit before Depriciation, Interest and Taxes(3-4): 7.66 8.98 10.28 10.03 9.77 6 Less Depriciation on Fixed Assets: 0.57 0.57 0.57 0.57 0.57 7 profit before interest and taxes (5-6): 7.09 8.41 9.71 9.46 9.20 8 Less Interest payable on loan: 0.53 0.43 0.32 0.21 0.11 9 Profit before taxes (7-8): 6.56 7.98 9.39 9.25 9.1010 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 6.56 7.98 9.39 9.25 9.10 Percentage of Profit on Sale: 61.23 65.20 68.18 67.18 66.0512 Provision for repayment of loan: 0.82 0.82 0.82 0.82 0.8213 Retained Profit (11-12): 5.74 7.16 8.57 8.43 8.2814 Net Cash Accruals 6.31 7.73 9.14 9.00 8.85 [Depreciation added back with retained profit]15 Cumulated Net profit: 6.56 14.54 23.93 33.18 42.27 Pay-Back Period: 11 Months Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-10]L] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 4.10 3.28 2.46 1.64 0.82 Proposed Repayment during the year: 0.82 0.82 0.82 0.82 0.82 Refundable loan at the end of the year: 3.28 2.46 1.64 0.82 0.00 Total Debt-Service [Interest+Repayment]: 1.35 1.24 1.14 1.03 0.93 Fund Available for Debt-Service: 7.66 8.98 10.28 10.03 9.77 Debt-Service Coverage Ratio: 5.67 7.21 9.03 9.72 10.56M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.293 ii) Loan from Bank: 4.095 iii) Increase in Subsidy: 1.463 iv) Profit Before Interest and taxes: 7.090 8.407 9.708 9.464 9.202 v) Depreciation added back: 0.570 0.570 0.570 0.570 0.570 Total 13.510 8.977 10.278 10.034 9.772 b) Uses of Fund: i) Increase in Fixed Assets: 5.700 ii) Preliminary Expenses: 0.150 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 0.000 v) Decrease in Loan: 0.819 0.819 0.819 0.819 0.819 vi) Interest payable: 0.532 0.426 0.319 0.213 0.106 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 7.201 1.245 1.138 1.032 0.925 Opening Balance: 6.309 14.040 23.180 32.182 Surplus/Deficit Generated: 6.309 7.732 9.140 9.002 8.847 Closing Balance: 6.309 14.040 23.180 32.182 41.028N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.29 0.29 0.29 0.29 0.29 ii) Cumulated Net Profit: 6.56 14.54 23.93 33.18 42.27 Net Worth: 6.85 14.83 24.22 33.47 42.57 iii) Subsidy: 1.46 1.46 1.46 1.46 1.46 iv) Loan at Bank: 3.28 2.46 1.64 0.82 0.00 Total 11.59 18.75 27.32 35.75 44.03 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 5.85 5.28 4.71 4.14 3.57 Less depreciation on Fixed Assets: 0.57 0.57 0.57 0.57 0.57 i) Net Block: 5.28 4.71 4.14 3.57 3.00 ii) Working Capital: 0.00 0.00 0.00 0.00 0.00 iii) Cash balance: 6.31 14.04 23.18 32.18 41.03 Total 11.59 18.75 27.32 35.75 44.03 Total Investment: 5.850 5.85 5.32 4.89 4.57 4.36 Return on Investment: 112.10 150.08 191.93 202.32 208.64 [100XNet profit/Total Investment] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-11]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 1.102 0.996 0.889 0.783 0.676 Other Operating Expenses 60% 1.830 1.958 2.095 2.242 2.399 Total 2.932 2.954 2.985 3.025 3.075 BEP [in % of target business] 27.684 24.760 22.504 23.163 23.937 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: 1. M/s Canara Engg. Enterprises, B-182 11 Stage, Peenya Industrial Estate, Bangalore-560 058. 2. M/s Jaya & Co., Trichy Road, P.B.No.1347, Coimbatore – 641 018. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-12]A] Introduction: Garment industry is playing a pivotal role in the Indian Economy. The demand for readymade garments have been ever-increasing. Today due to time constraints people prefer to buy readymade garments rather than going to a tailoring unit and getting the garments stitched after 10 to 15 days. Moreover people prefer to select from varieties that is available in the market. So, it can be said that if the entrepreneur is creative and has a command over dress designing, he can be successful in the present day market.B] Market Potential of the product: Tripura has a good market for readymade garments which are coming from outside the State. There is enough potential in the state for a few units.C] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 500 Sq. Ft. @ Rs. 2. Power 2 KW 3. Water 500 LtrsD] Manpower Requirement: The unit will employ 10 persons both skills & unskilled. 1 Manager 1 No. 2 Master Tailor 2 Nos. 3 Tailor 6 Nos. 4 Chowkidar 1 No. Total 10 Nos. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-13]E] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: (Rented) 0.00 iv. Plant & Machineries: 3.30 v. Misc. Fixed Assets: 0.55 (Furnitures, Fixtures, electrification etc.) Total 3.85 vi. Preliminary & Pre-operative expenses: 0.25 vii. Margin for Working Capital (Not required) 0.00 Total amount of Fixed Capital required 4.10 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 1.70 ii. Finished goods [15 Days] 1.20 iii. Receivables [15 Days] 1.15 Total amount of Working Capital required 4.05 Total Fund Required for the Project: [1 + 2] Rs 8.15 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 5.71 4.89 ii. Subsidy entitled: 2.04 2.85 iii. Own contribution @ 5% of Project Cost: 0.41 0.41 Total 8.15 8.15F] Monthly Sales Forecasting: @ 70% Capacity Utilisation. Items Qnty (Nos) Rate (Rs/Piece) Amount (Rs) 1 Salwar Suit 150 300 360 54000 2 Shirt 400 150 180 72000 3 Blouse 400 80 100 40000 4 Kids garament 300 220 265 79500 Total 245500 Total Projected annual sale = Rs 29.46 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page - 14]G] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 29.46 33.67 37.88 37.88 37.88 2 Less Cost of Materials: 20.40 23.31 26.23 26.23 26.23 3 Gross Profit (1-2): 9.06 10.35 11.65 11.65 11.65 4 Less other operating expenses: i) Rent for Land: 0.15 0.16 0.17 0.18 0.20 ii) Salary for staff: 3.70 3.96 4.24 4.53 4.85 iii) Electricity and maintainance: 0.25 0.27 0.29 0.31 0.33 iv) Office expenses (Stationary, Telephone etc.) 0.10 0.11 0.11 0.12 0.13 v) Advertising and Selling expenses: 1.50 1.61 1.72 1.84 1.97 vi) Insurance and other misc. expenses: 0.05 0.05 0.06 0.06 0.07 Total of Sl. 4. 5.75 6.15 6.58 7.04 7.54 5 Profit before Depriciation, Interest and Taxes(3-4): 3.31 4.20 5.07 4.60 4.11 6 Less Depriciation on Fixed Assets: 0.39 0.39 0.39 0.39 0.39 7 profit before interest and taxes (5-6): 2.93 3.82 4.68 4.22 3.73 8 Less Interest payable on loan: 0.74 0.59 0.44 0.30 0.15 9 Profit before taxes (7-8): 2.18 3.22 4.24 3.92 3.5810 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 2.18 3.22 4.24 3.92 3.58 Percentage of Profit on Sale: 7.41 9.57 11.18 10.36 9.4512 Provision for repayment of loan: 1.14 1.14 1.14 1.14 1.1413 Retained Profit (11-12): 1.04 2.08 3.09 2.78 2.4414 Net Cash Accruals 1.43 2.47 3.48 3.17 2.82 [Depreciation added back with retained profit]15 Cumulated Net profit: 2.18 5.41 9.64 13.57 17.14 Pay-Back Period: 30 MonthsH] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 5.71 4.56 3.42 2.28 1.14 Proposed Repayment during the year: 1.14 1.14 1.14 1.14 1.14 Refundable loan at the end of the year: 4.56 3.42 2.28 1.14 0.00 Total Debt-Service [Interest+Repayment]: 1.88 1.73 1.59 1.44 1.29 Fund Available for Debt-Service: 3.31 4.20 5.07 4.60 4.11 Debt-Service Coverage Ratio: 1.76 2.42 3.19 3.20 3.19 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-15]I] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.408 ii) Loan from Bank: 5.705 iii) Increase in Subsidy: 2.038 iv) Profit Before Interest and taxes: 2.925 3.817 4.680 4.220 3.726 v) Depreciation added back: 0.385 0.385 0.385 0.385 0.385 Total 11.460 4.202 5.065 4.605 4.111 b) Uses of Fund: i) Increase in Fixed Assets: 3.850 ii) Preliminary Expenses: 0.250 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 4.050 v) Decrease in Loan: 1.141 1.141 1.141 1.141 1.141 vi) Interest payable: 0.742 0.593 0.445 0.297 0.148 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 10.033 1.734 1.586 1.438 1.289 Opening Balance: 1.427 3.895 7.374 10.541 Surplus/Deficit Generated: 1.427 2.467 3.479 3.167 2.822 Closing Balance: 1.427 3.895 7.374 10.541 13.363J] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.41 0.41 0.41 0.41 0.41 ii) Cumulated Net Profit: 2.18 5.41 9.64 13.57 17.14 Net Worth: 2.59 5.81 10.05 13.97 17.55 iii) Subsidy: 2.04 2.04 2.04 2.04 2.04 iv) Loan at Bank: 4.56 3.42 2.28 1.14 0.00 Total 9.19 11.27 14.37 17.15 19.59 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 4.10 3.72 3.33 2.95 2.56 Less depreciation on Fixed Assets: 0.39 0.39 0.39 0.39 0.39 i) Net Block: 3.72 3.33 2.95 2.56 2.18 ii) Working Capital: 4.05 4.05 4.05 4.05 4.05 iii) Cash balance: 1.43 3.89 7.37 10.54 13.36 Total 9.19 11.27 14.37 17.15 19.59 Total Investment: 8.150 8.15 7.41 6.82 6.37 6.07 Return on Investment: 26.79 43.51 62.15 61.58 58.92 [100XNet profit/Total Investment]K] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 1.277 0.978 0.830 0.682 0.533 Other Operating Expenses 60% 3.360 3.595 3.847 4.116 4.404 Total 4.637 4.574 4.677 4.798 4.938 BEP [in % of target business] 58.347 52.118 48.006 51.028 54.565 [100xFC/(FC+Net profit)]L] Machinery & Equipment Suppliers: All the Machineries & Equipments are vailable in the Local Market. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-16]A] Introduction: The art of dyeing is a branch of applied chemistry in which a use of both physical and chemical principle is made in order to bring about a permanent union between the dyes and the textile materials. The art lies in colouring the textile in such a manner the colour may be fast and is not removed by operations such as working, rubbing, sunlight etc. Yarn dyeing is a common feature in the North Eastern states with nearly 50% of the handloom being located here and the demand for dyed yarn both cotton and silk is of great demand for this sector.B] Market Potential of the product: The N.E. Region including Tripura has a great demand for dyed yarn both cotton and silk as it is the only raw material which feeds the handloom weaving sector. The manufactured yarn is either bleached or is grey in colour. It is subsequently dyed to give different colours. These coloured yarns are the raw material for weavers of the handloom sector. There is a great demand for the dyed yarn as nearly every household in the rural sector has a loom which cater to the day to day clothing required.C] Raw Material: The main raw material required for the unit is gray yarn 78750 Kgs and the cost of the grey yarn is estimated at Rs 115 Per Kg. Therefore annual requirement is of Rs 90.5625 Lakh The different colour powders required are: • Violet : 105 Kgs • Blue : 105 Kgs • Green : 90 Kgs • Dark blue : 160 Kgs. • Pink : 65 Kgs. • Red-scarlet R base : 190 Kgs • Maroon A.S.T.R. base : 55 Kgs • Black :1225 Kgs. • Chocolate – GBC base : 55 Kgs. • Orange –G.C. base : 20 Kgs • Yellow : 30 Kgs. Other Inputs (Chemicals etc.): • A.S. : 160 Kgs. • B.S. : 160 Kgs. • Sodium Nitrate : 160 Kgs. • Hydrolic Acid : 370 Ltrs. • Ammonium sulphate : 315 Kgs • Sodium Sulphate : 1050 Kgs. • Caustic Soda : 1575 Kgs. • Hydrogen Sulphide : 525 Kgs. • Sodium accelate : 40 Kgs • Soft soap : 1750 Kgs. Packing Materials – Paper, Cartoon, Boxes etc. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-17]D] Production Process: The major process steps are: i) Scouring of grey yarn in soft soap solution. ii) Washing and squeezing the scoured yarn between bamboo poles. iii) Dyeing of scoured yarns by Vatdyes/ sulpher dyes / Napthol dyes. iv) Washing in fresh water and squeezing of dyed yarns. v) Drying of dyed yarns under fan. Process flow:-E] Suggested Installed Capacity: Production per day at rated capacity : 375 Kgs. Capacity Utilisation : 70% Average daily production envisaged : 262.5 Kgs Working Days/year : 300 Days Annual production : 17,500 bundles or 78750 KgsF] Manpower Requirement: The unit will employ 5 Nos. of skilled & un-skilled person. 1 Manager 1 No. 2 Dye Master 1 No. 3 Skilled Worker 2 Nos. 4 Helper 1 No. Total 5 Nos. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page - 18]G] Machineries & Equipments required: Machines/Equipments Quantity (Nos) Amount Required (In Lakh Rs.) 1 Cast Iron Pan (Cap 100 Ltr.) 5 0.25 2 Cast Iron Karahi (Cap. 20 Ltr.) 4 0.07 3 Weigh M/c. 1 0.07 4 Storage Trays 10 0.18 0.57 Add: Cost of Transportation 0.04 Total 0.61H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 1200 Sq. Ft. 2. Power 2 KW 3. Water 500 Ltrs/DayI] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: (Rented) 0.00 iv. Plant & Machineries: 0.61 v. Misc. Fixed Assets: 0.25 (Furnitures, Fixtures, electrification etc.) Total 0.86 vi. Preliminary & Pre-operative expenses: 0.12 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 0.98 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [15 Days] 5.43 ii. Finished goods [15 Days] 5.50 iii. Receivables [15 Days] 5.15 Total amount of Working Capital required 16.08 Total Fund Required for the Project: [1 + 2] Rs 17.06 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 11.94 10.24 ii. Subsidy entitled: 4.27 5.97 iii. Own contribution @ 5% of Project Cost: 0.85 0.85 Total 17.06 17.06 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-19]J] Annual Sales Forecasting: @ 70% Capacity Utilisation. Items Qnty (Kgs) Rate (Rs/Piece) Amount (Rs) 1 Violet 7875 180 1417500 2 Blue 7875 162 1275750 3 Green 7875 162 1275750 4 Dark Blue 11810 162 1913220 5 Pink 2360 162 382320 6 Red 14175 162 2296350 7 Maroon 3940 162 638280 8 Black 15750 162 2551500 9 Choclate 3940 162 638280 10 Orange 1575 162 255150 11 Yellow 1575 162 255150 Total 12899250 Total Projected annual sale = Rs 128.99 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-20]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 128.99 147.42 165.85 165.85 165.85 2 Less Cost of Materials (Including Colour Powder): 79.16 90.47 101.78 101.78 101.78 3 Gross Profit (1-2): 49.83 56.95 64.07 64.07 64.07 4 Less other operating expenses: i) Rent for Land: 0.40 0.43 0.46 0.49 0.52 ii) Salary for staff: 1.20 1.28 1.37 1.47 1.57 iii) Electricity and maintainance: 0.30 0.32 0.34 0.37 0.39 iv) Office expenses (Stationary, Telephone etc.) 0.25 0.27 0.29 0.31 0.33 v) Advertising and Selling expenses: 6.20 6.63 7.10 7.60 8.13 vi) Insurance and other misc. expenses: 0.20 0.21 0.23 0.25 0.26 Total of Sl. 4. 8.55 9.15 9.79 10.47 11.21 5 Profit before Depriciation, Interest and Taxes(3-4): 41.28 47.80 54.28 53.60 52.86 6 Less Depriciation on Fixed Assets: 0.09 0.09 0.09 0.09 0.09 7 profit before interest and taxes (5-6): 41.20 47.72 54.20 53.51 52.78 8 Less Interest payable on loan: 1.55 1.24 0.93 0.62 0.31 9 Profit before taxes (7-8): 39.64 46.47 53.26 52.89 52.4710 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 39.64 46.47 53.26 52.89 52.47 Percentage of Profit on Sale: 30.73 31.53 32.12 31.89 31.6412 Provision for repayment of loan: 2.39 2.39 2.39 2.39 2.3913 Retained Profit (11-12): 37.26 44.09 50.88 50.50 50.0814 Net Cash Accruals 37.34 44.17 50.96 50.59 50.16 [Depreciation added back with retained profit]15 Cumulated Net profit: 39.64 86.12 139.38 192.27 244.74 Pay-Back Period: 5 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 11.94 9.55 7.17 4.78 2.39 Proposed Repayment during the year: 2.39 2.39 2.39 2.39 2.39 Refundable loan at the end of the year: 9.55 7.17 4.78 2.39 0.00 Total Debt-Service [Interest+Repayment]: 3.94 3.63 3.32 3.01 2.70 Fund Available for Debt-Service: 41.28 47.80 54.28 53.60 52.86 Debt-Service Coverage Ratio: 10.48 13.17 16.35 17.81 19.59 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-21]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.853 ii) Loan from Bank: 11.942 iii) Increase in Subsidy: 4.265 iv) Profit Before Interest and taxes: 41.197 47.717 54.195 53.510 52.777 v) Depreciation added back: 0.086 0.086 0.086 0.086 0.086 Total 58.343 47.803 54.281 53.596 52.863 b) Uses of Fund: i) Increase in Fixed Assets: 0.860 ii) Preliminary Expenses: 0.120 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 16.080 v) Decrease in Loan: 2.388 2.388 2.388 2.388 2.388 vi) Interest payable: 1.552 1.242 0.931 0.621 0.310 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 21.001 3.630 3.320 3.009 2.699 Opening Balance: 37.342 81.514 132.476 183.063 Surplus/Deficit Generated: 37.342 44.173 50.962 50.587 50.164 Closing Balance: 37.342 81.514 132.476 183.063 233.227N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.85 0.85 0.85 0.85 0.85 ii) Cumulated Net Profit: 39.64 86.12 139.38 192.27 244.74 Net Worth: 40.50 86.97 140.24 193.13 245.59 iii) Subsidy: 4.27 4.27 4.27 4.27 4.27 iv) Loan at Bank: 9.55 7.17 4.78 2.39 0.00 Total 54.32 98.40 149.28 199.78 249.86 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 0.98 0.89 0.81 0.72 0.64 Less depreciation on Fixed Assets: 0.09 0.09 0.09 0.09 0.09 i) Net Block: 0.89 0.81 0.72 0.64 0.55 ii) Working Capital: 16.08 16.08 16.08 16.08 16.08 iii) Cash balance: 37.34 81.51 132.48 183.06 233.23 Total 54.32 98.40 149.28 199.78 249.86 Total Investment: 17.060 17.06 15.51 14.27 13.33 12.71 Return on Investment: 232.38 299.69 373.37 396.65 412.70 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 2.038 1.328 1.017 0.707 0.396 Other Operating Expenses 60% 4.890 5.232 5.599 5.990 6.410 Total 6.928 6.560 6.616 6.697 6.806 BEP [in % of target business] 14.371 12.067 10.864 11.108 11.407 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: The yarns as well as the colours and chemicals are available in the state capital Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-22]A] Introduction: Mosquito net is considered as an essential item for human living. It is a protective item used by people to ward off mosquito bites during sleep with people become more health and hygiene conscious, mosquito nets have found preference over mosquito repellant which is a chemical preparation and is hazardous to health in the long run.B] The Product: Mosquito net is an essential item of the bedding used by people to product themselves from mosquito bites during sleep. Though other protective items like mosquito repellant coils and mats, ointments are available yet people prefer mosquito nets as there are no side effects as may be present in the chemically prepared item. Hence, the demand for mosquito nets is always in the increase. With the introduction of nylon nets, the preference for cotton nets are decreasing as nylon nets have more durability, easier and lighter to wash with better air circulation.C] Market Potential of the product: Mosquito net is an essential item for human use. Its demand is not seasonal but exists throughout the year. Apart from domestic consumption, there exist demand in hotels, hospital and defence sector, who are bulk purchasers of the item through rate contracts.D] Availability of Raw Material: The raw materials required for the unit is Nylon Net which is available in the market. It can be procured in bulk from the wholesaler at reduced price. Other accessories required are lining cloth, cotton tape and sewing threads which is readily available in the market. Item Qty. 1. Nylon net 250000 mtr. @ Rs 20/mtr Lining 63750 mtrs 2. Cotton tap, sewing L.S. thread, lining cloth etc. cotton tape +threads 3. Packing materials L.S. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-23]E] Suggested Location: The unit may be located in any urban area preferably near to the market place.F] Production Process: The manufacture of Nylon net is very simple. A piece of net is cut in rectangular size varying in size whether it is a double or a single net. Another piece is stitched with cotton tape and lining making it into a rectangular tent to fit the bed. Process Flow Chart:-G] Suggested Installed Capacity: Capacity utilization 100% Working days/year 300 Days Annual production 35715 NetsH] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 750 Sq. Ft. 2. Power 2 KW 3. Water 500 Ltrs / DayI] Machineries & Equipments required: Machines/Equipments Quantity (Nos) Amount Required (In Lakh Rs.) 1 Sewing Machine 103K full sets 10 2.04 2 Scissors, Tapes, Inter Lock Machines LS and other accessories. Total 2.04J] Manpower Requirement: The unit will employ 8 Nos. of skilled & un-skilled person. 1 Owner Cum Manager 1 No. 2 Skilled Worker 4 No. 3 Un-Skilled Worker 2 Nos. 4 Helper 1 No. Total 8 Nos. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page - 24]K] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: (Rented) 0.00 iv. Plant & Machineries: 2.04 v. Misc. Fixed Assets: 0.35 (Furnitures, Fixtures, electrification etc.) Total 2.39 vi. Preliminary & Pre-operative expenses: 0.12 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 2.51 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [15 Days] 3.30 ii. Finished goods [15 Days] 3.50 iii. Receivables [15 Days] 3.75 Total amount of Working Capital required 10.55 Total Fund Required for the Project: [1 + 2] Rs 13.06 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 9.14 7.84 ii. Subsidy entitled: 3.27 4.57 iii. Own contribution @ 5% of Project Cost: 0.65 0.65 Total 13.06 13.06L] Annual Sales Forecasting: @ 70% Capacity Utilisation. Items Qnty (Nos.) Rate (Rs) Amount (Rs) Mosquito Nets 25000 350 8750000 8750000 Total Projected annual sale = Rs 87.5 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-25]M] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 87.50 100.00 112.50 112.50 112.50 2 Less Cost of Materials: 79.20 90.51 101.83 101.83 101.83 3 Gross Profit (1-2): 8.30 9.49 10.67 10.67 10.67 4 Less other operating expenses: i) Rent for Land: 0.40 0.43 0.46 0.49 0.52 ii) Salary for staff: 2.00 2.14 2.29 2.45 2.62 iii) Electricity and maintainance: 0.24 0.26 0.27 0.29 0.31 iv) Office expenses (Stationary, Telephone etc.) 0.10 0.11 0.11 0.12 0.13 v) Advertising and Selling expenses: 0.60 0.64 0.69 0.74 0.79 vi) Insurance and other misc. expenses: 0.20 0.21 0.23 0.25 0.26 Total of Sl. 4. 3.54 3.79 4.05 4.34 4.64 5 Profit before Depriciation, Interest and Taxes(3-4): 4.76 5.70 6.62 6.33 6.03 6 Less Depriciation on Fixed Assets: 0.24 0.24 0.24 0.24 0.24 7 profit before interest and taxes (5-6): 4.52 5.46 6.38 6.10 5.79 8 Less Interest payable on loan: 1.19 0.95 0.71 0.48 0.24 9 Profit before taxes (7-8): 3.33 4.51 5.67 5.62 5.5510 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 3.33 4.51 5.67 5.62 5.55 Percentage of Profit on Sale: 3.81 4.51 5.04 5.00 4.9412 Provision for repayment of loan: 1.83 1.83 1.83 1.83 1.8313 Retained Profit (11-12): 1.50 2.68 3.84 3.79 3.7314 Net Cash Accruals 1.74 2.92 4.08 4.03 3.97 [Depreciation added back with retained profit]15 Cumulated Net profit: 3.33 7.84 13.51 19.13 24.68 Pay-Back Period: 35 MonthsN] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 9.14 7.31 5.49 3.66 1.83 Proposed Repayment during the year: 1.83 1.83 1.83 1.83 1.83 Refundable loan at the end of the year: 7.31 5.49 3.66 1.83 0.00 Total Debt-Service [Interest+Repayment]: 3.02 2.78 2.54 2.30 2.07 Fund Available for Debt-Service: 4.76 5.70 6.62 6.33 6.03 Debt-Service Coverage Ratio: 1.58 2.05 2.60 2.75 2.92 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-26]O] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.653 ii) Loan from Bank: 9.142 iii) Increase in Subsidy: 3.265 iv) Profit Before Interest and taxes: 4.521 5.459 6.379 6.096 5.792 v) Depreciation added back: 0.239 0.239 0.239 0.239 0.239 Total 17.820 5.698 6.618 6.335 6.031 b) Uses of Fund: i) Increase in Fixed Assets: 2.390 ii) Preliminary Expenses: 0.120 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 10.550 v) Decrease in Loan: 1.828 1.828 1.828 1.828 1.828 vi) Interest payable: 1.188 0.951 0.713 0.475 0.238 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 16.077 2.779 2.541 2.304 2.066 Opening Balance: 1.743 4.662 8.739 12.770 Surplus/Deficit Generated: 1.743 2.919 4.077 4.031 3.965 Closing Balance: 1.743 4.662 8.739 12.770 16.735P] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.65 0.65 0.65 0.65 0.65 ii) Cumulated Net Profit: 3.33 7.84 13.51 19.13 24.68 Net Worth: 3.99 8.49 14.16 19.78 25.34 iii) Subsidy: 3.27 3.27 3.27 3.27 3.27 iv) Loan at Bank: 7.31 5.49 3.66 1.83 0.00 Total 14.56 17.24 21.08 24.87 28.60 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 2.51 2.27 2.03 1.79 1.55 Less depreciation on Fixed Assets: 0.24 0.24 0.24 0.24 0.24 i) Net Block: 2.27 2.03 1.79 1.55 1.32 ii) Working Capital: 10.55 10.55 10.55 10.55 10.55 iii) Cash balance: 1.74 4.66 8.74 12.77 16.74 Total 14.56 17.24 21.08 24.87 28.60 Total Investment: 13.060 13.06 11.87 10.92 10.21 9.73 Return on Investment: 25.52 37.97 51.89 55.06 57.07 [100XNet profit/Total Investment]Q] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 1.827 1.190 0.952 0.714 0.477 Other Operating Expenses 60% 1.884 2.016 2.157 2.308 2.470 Total 3.711 3.206 3.109 3.022 2.946 BEP [in % of target business] 43.811 36.004 31.961 32.300 32.818 [100xFC/(FC+Net profit)]R] Machinery & Equipment Suppliers: All machineries and equipment are available in the local market. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-27]A] Introduction: Hawai chappals are used by practically all cross-sections of people, including the young and old, urban and rural, poor and rich. While the lower middle class uses it as utility footwear, the more affluent sections use it for casual wear.B] Market Potential of the product: Since hawai chappals are used by a large cross-section of the population, it may be assumed that of the total population of 365 lakhs in the north-eastern region, about 60% i.e. about 219 lakhs would be using hawai chappals. The demand for hawai chappals would mainly depend on the rate of wear for the users. In the case of those who use it for daily wear, namely the poorer sections and rural folk, the life may be shorter whereas for others it may be longer. On an average it may be assumed that a user would require one pair of hawai chappals in a year. On this basis, the demand for hawai chappals in the north eastern region is estimated at 219 lakhs pairs per year. There are at present only two units manufacturing hawai chappals in the north eastern region. Bulk of the demand is being met by established brands like Bata, Lakhani, Paragon and a host of small manufacturers outside the region, who sell the products in the north eastern market. If new tiny units are able to capture even 5% of the market, they have adequate market opportunity to the tune of 11 lakh pairs per year. Considering the capacity of a typical tiny unit as 150,000 pairs there is scope for over 7 tiny units to be set in the north eastern region, of which 2 units could be in Tripura.C] Raw Material: The raw materials required are rubber sole, plastic strap, rubber strap and packing materials. Rubber sheets are required for making rubber sole. These sheets normally come in standard size from which 35 pairs of soles can be made. On this basis the annual requirements at 70% capacity utilization are: Per Year Qnty Rate (Rs) Amount (Rs) 1 Rubber Sole Sheet 3010 235 707350 2 Plastic Strap 35000 1.9 66500 3 Rubber Strap 70000 2.4 168000 4 Packing Materials 105000 1.2 126000 Total 1067850 Or Rs 10.6785 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-28]D] Production Process: The main process steps involved in the making of hawai chappal are – i) Cutting of sole ii) Polishing of sole upper iii) Punching of sole iv) Fitting strap v) Packaging in cartoons. Process flow:-E] Suggested Installed Capacity: A typical unit would have a capacity of 150,000 pairs and produce 105,000 pairs on the following basis: Effective working hours : 8 hrs/day (1 shift) Daily production : 350 pairs Working days/year : 300 Annual production : 1,50,000 pairs at 100% Capacity Utilization The product-mix would include chappals with plastic strap as well as chappals with rubber strap. The following product-mix is suggested at 70% rated capacity. Qty./Year Plastic strap chappal : 35,000 pairs Rubber strap chappal : 70,000 pairsF] Manpower Requirement: The unit will employ 5 Nos. of skilled & un-skilled person. 1 Manager 1 No. 2 Factory Staff 4 No. Total 5 Nos.G] Machineries & Equipments required: Machines/Equipments Quantity (Nos) Amount Required (In Lakh Rs.) 1 Sole cutting machine 2 2 Polishing machine 2 3 Punching machine 2 4.4 4 Electric motor 2 5 Size plate machine 1 4.4 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page - 29]H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 1000 Sq. Ft. 2. Power NegligibleI] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: (Rented) 0.00 iv. Plant & Machineries: 4.40 v. Misc. Fixed Assets: 1.20 (Furnitures, Fixtures, electrification etc.) Total 5.60 vi. Preliminary & Pre-operative expenses: 1.45 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 7.05 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [2 Months] 1.78 ii. Finished goods [1 Month] 1.10 iii. Receivables [15 days] 1.00 Total amount of Working Capital required 3.88 Total Fund Required for the Project: [1 + 2] Rs 10.93 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 7.65 6.56 ii. Subsidy entitled: 2.73 3.83 iii. Own contribution @ 5% of Project Cost: 0.55 0.55 Total 10.93 10.93J] Annual Sales Forecasting: @ 70% Capacity Utilisation. The market price of established brands of hawai chappals such as Bata, Paragon, Lakhani etc. varies between Rs 70/- and Rs 100/- depending on size while lesser known brands sell their products for Rs 45/- to Rs 55/-. Based on this, ex-factory price of Rs 25/- per pair for plastic strap chappals and Rs 20/- per piece for rubber strap chappals has been considered. On this basis the total sales realization is estimated at 70% capacity utilization as under: Items Qnty (Pairs) Rate (Rs/Piece) Amount (Lakh Rs) 1 Rubber strap chappals 70000 20 14 2 Plastic strap chappals 35000 25 8.75 Total 22.75 Total Projected annual sale = Rs 22.75 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-30]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 22.75 26.00 29.25 29.25 29.25 2 Less Cost of Materials: 10.68 12.20 13.73 13.73 13.73 3 Gross Profit (1-2): 12.07 13.80 15.52 15.52 15.52 4 Less other operating expenses: i) Rent for Land: 0.50 0.54 0.57 0.61 0.66 ii) Salary for staff: 1.80 1.93 2.06 2.21 2.36 iii) Electricity and maintainance: 0.30 0.32 0.34 0.37 0.39 iv) Office expenses (Stationary, Telephone etc.) 0.25 0.27 0.29 0.31 0.33 v) Advertising and Selling expenses: 1.00 1.07 1.14 1.23 1.31 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 3.95 4.23 4.52 4.84 5.18 5 Profit before Depriciation, Interest and Taxes(3-4): 8.12 9.57 11.00 10.68 10.34 6 Less Depriciation on Fixed Assets: 0.56 0.56 0.56 0.56 0.56 7 profit before interest and taxes (5-6): 7.56 9.01 10.44 10.12 9.78 8 Less Interest payable on loan: 0.99 0.80 0.60 0.40 0.20 9 Profit before taxes (7-8): 6.57 8.21 9.84 9.72 9.5810 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 6.57 8.21 9.84 9.72 9.58 Percentage of Profit on Sale: 28.87 31.59 33.65 33.24 32.7712 Provision for repayment of loan: 1.53 1.53 1.53 1.53 1.5313 Retained Profit (11-12): 5.04 6.68 8.31 8.19 8.0514 Net Cash Accruals 5.60 7.24 8.87 8.75 8.61 [Depreciation added back with retained profit]15 Cumulated Net profit: 6.57 14.78 24.62 34.35 43.93 Pay-Back Period: 18 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 7.65 6.12 4.59 3.06 1.53 Proposed Repayment during the year: 1.53 1.53 1.53 1.53 1.53 Refundable loan at the end of the year: 6.12 4.59 3.06 1.53 0.00 Total Debt-Service [Interest+Repayment]: 2.52 2.33 2.13 1.93 1.73 Fund Available for Debt-Service: 8.12 9.57 11.00 10.68 10.34 Debt-Service Coverage Ratio: 3.22 4.11 5.17 5.54 5.98 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-31]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.546 ii) Loan from Bank: 7.651 iii) Increase in Subsidy: 2.732 iv) Profit Before Interest and taxes: 7.562 9.010 10.438 10.122 9.783 v) Depreciation added back: 0.560 0.560 0.560 0.560 0.560 Total 19.051 9.570 10.998 10.682 10.343 b) Uses of Fund: i) Increase in Fixed Assets: 5.600 ii) Preliminary Expenses: 1.450 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 3.880 v) Decrease in Loan: 1.530 1.530 1.530 1.530 1.530 vi) Interest payable: 0.995 0.796 0.597 0.398 0.199 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 13.455 2.326 2.127 1.928 1.729 Opening Balance: 5.597 12.840 21.712 30.465 Surplus/Deficit Generated: 5.597 7.244 8.871 8.754 8.614 Closing Balance: 5.597 12.840 21.712 30.465 39.079N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.55 0.55 0.55 0.55 0.55 ii) Cumulated Net Profit: 6.57 14.78 24.62 34.35 43.93 Net Worth: 7.11 15.33 25.17 34.89 44.48 iii) Subsidy: 2.73 2.73 2.73 2.73 2.73 iv) Loan at Bank: 6.12 4.59 3.06 1.53 0.00 Total 15.97 22.65 30.96 39.15 47.21 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 7.05 6.49 5.93 5.37 4.81 Less depreciation on Fixed Assets: 0.56 0.56 0.56 0.56 0.56 i) Net Block: 6.49 5.93 5.37 4.81 4.25 ii) Working Capital: 3.88 3.88 3.88 3.88 3.88 iii) Cash balance: 5.60 12.84 21.71 30.47 39.08 Total 15.97 22.65 30.96 39.15 47.21 Total Investment: 10.930 10.93 9.94 9.14 8.54 8.14 Return on Investment: 60.08 82.67 107.68 113.83 117.67 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 2.055 1.356 1.157 0.958 0.759 Other Operating Expenses 60% 2.070 2.215 2.370 2.536 2.713 Total 4.125 3.571 3.527 3.494 3.472 BEP [in % of target business] 33.681 27.173 24.281 24.646 25.134 [100xFC/(FC+Net profit)] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-32]P] Machinery & Equipment Suppliers: M/s Elder Mechanical Works, M/s G.G. Engineering Works, A- 59, Sham Nagar, 5/1 – B, Industrial Estate, New Delhi – 110 018 Kirti Nagar, New Delhi – 110 015 M/s Haria Engineering Works, M/s Kelachandra Iron & Steel Works, Shankar Tekri Industrial Estate, Chingawanam, Post Box No. 643 Kerala – 686 537 Jamnagar M/s Major Machine Tools, M/s Sant Rubber Machines (P) Ltd., B – XXX-94 Sherpur Khurd, Bassi Road, Byepass Road, Sirhind – 140 406 Ludhiana Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-33]A] Introduction: Rubber Footwear’s are more popular because of light weight, longer life, resistance to water and moisture and low price. Among the rubber footwear’s chap pals are the most common variety. The demand for chap pals in India is presently more than 630 million pairs and the production is more than 350 million pairs, which leaves a demand, supply gap of 280 million, pairs. Apart from this the demand is increasing at the rate of 5%. The present total annual demand in North Eastern Region including Tripura is about 174.00 lakhs pairs.B] Raw Material: Per Year Qnty (KG) 1 Ethylene Vinyl Acetate 100 2 Natural Rubber 70 3 Zinc Oxide 8 4 Stearic Acid 3 5 Calcium Carbonate 118 6 SBR 1953 12 7 China Clay 15 8 Sulphur 8 9 Titanium Dioxide 8 10 Pigment 5 11 Paraffin Wax 5C] Production Process: The natural rubber and other compounding ingredients are mixed in a two roll mixing mill. The stock is then sheeted out and cooled. After 24 hours maturation, it is pre-warmed in a mixing mill. The compound is then filled in the mould and cured in a hydraulic press for about 6-7 minutes at 145oC. The sheets after moulding are subjected to post curing for 2-3 hours at 100oC in a hot chamber to give dimensional stability to the sheet. Moulding of hawai straps are carried out in a screw press. The soles are cut into different sizes, holes are drilled and then assembled. Process flow:- Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-34]D] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 200 Sq. mt. 2. Power 40-50 KW 3. Water 3500 Ltrs / Day 4. Building and Civil Work : About 100 Sq. Mtr. floor space is sufficient for running the plant conveniently.E] Suggested Installed Capacity: A production capacity or 4,60,000 pair Hawaii type Rubber Chappals per annum is suggested at 100% Capacity for a viable unit.F] Manpower Requirement: The unit will employ 10 Nos. of skilled & un-skilled person. 1 Administrative Staffs 2 Nos. 2 Factory Staff 8 No. Total 10 Nos.G] Machineries & Equipments required: Machines/Equipments Quantity (Nos) Amount Required (In Lakh Rs.) 1 Dispersion kneader – 90 litre 1 2 Mixing Machine 1 3 Sheeting Mill 1 17.7 4 Conveyor and cutting machine 1 5 Hydraulic press-250 T 1 6 Post cutting chamber 1 7 Cutting, Grinding and sealing machine 1 8 Air compressor 1 9 Boiler – 450 Kg. 14 Kg./Sq.m 1 10 Work Table & Tools LS 17.7H] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: (Rented) 0.00 iv. Plant & Machineries: 17.70 v. Misc. Fixed Assets: 1.50 (Furnitures, Fixtures, electrification etc.) Total 19.20 vi. Preliminary & Pre-operative expenses: 1.85 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 21.05 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Months] 2.50 ii. Finished goods [7 Days] 0.70 iii. Receivables [7 days] 0.75 Total amount of Working Capital required 3.95 Total Fund Required for the Project: [1 + 2] Rs 25.00 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page - 35] 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 17.50 15.00 ii. Subsidy entitled: 6.25 8.75 iii. Own contribution @ 5% of Project Cost: 1.25 1.25 Total 25.00 25.00I] Annual Sales Forecasting: @ 70% Capacity Utilisation. Based on the present market prices and after providing for taxes and duties etc. selling prices assumed and annual sales realization in the first year (70%) are as below: Items Qnty (Pairs) Rate (Rs/Piece) Amount (Lakh Rs) 1 Rubber chappals 322000 25 80.5 Total 80.5 Total Projected annual sale = Rs 80.50 LakhJ] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 80.50 92.00 103.50 103.50 103.50 2 Less Cost of Materials: 30.00 34.29 38.57 38.57 38.57 3 Gross Profit (1-2): 50.50 57.71 64.93 64.93 64.93 4 Less other operating expenses: i) Rent for Land: 0.74 0.79 0.85 0.91 0.97 ii) Salary for staff: 10.00 10.70 11.45 12.25 13.11 iii) Electricity and maintainance: 6.00 6.42 6.87 7.35 7.86 iv) Office expenses (Stationary, Telephone etc.) 0.25 0.27 0.29 0.31 0.33 v) Advertising and Selling expenses: 16.00 17.12 18.32 19.60 20.97 vi) Insurance and other misc. expenses: 0.30 0.32 0.34 0.37 0.39 Total of Sl. 4. 33.29 35.62 38.11 40.78 43.64 5 Profit before Depriciation, Interest and Taxes(3-4): 17.21 22.09 26.81 24.15 21.29 6 Less Depriciation on Fixed Assets: 1.92 1.92 1.92 1.92 1.92 7 profit before interest and taxes (5-6): 15.29 20.17 24.89 22.23 19.37 8 Less Interest payable on loan: 2.28 1.82 1.37 0.91 0.46 9 Profit before taxes (7-8): 13.02 18.35 23.53 21.32 18.9210 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 13.02 18.35 23.53 21.32 18.92 Percentage of Profit on Sale: 16.17 19.95 22.73 20.60 18.2812 Provision for repayment of loan: 3.50 3.50 3.50 3.50 3.5013 Retained Profit (11-12): 9.52 14.85 20.03 17.82 15.4214 Net Cash Accruals 11.44 16.77 21.95 19.74 17.34 [Depreciation added back with retained profit]15 Cumulated Net profit: 13.02 31.37 54.90 76.22 95.13 Pay-Back Period: 19 Months Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-36]K] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 17.50 14.00 10.50 7.00 3.50 Proposed Repayment during the year: 3.50 3.50 3.50 3.50 3.50 Refundable loan at the end of the year: 14.00 10.50 7.00 3.50 0.00 Total Debt-Service [Interest+Repayment]: 5.78 5.32 4.87 4.41 3.96 Fund Available for Debt-Service: 17.21 22.09 26.81 24.15 21.29 Debt-Service Coverage Ratio: 2.98 4.15 5.51 5.48 5.38L] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 1.250 ii) Loan from Bank: 17.500 iii) Increase in Subsidy: 6.250 iv) Profit Before Interest and taxes: 15.290 20.174 24.895 22.227 19.372 v) Depreciation added back: 1.920 1.920 1.920 1.920 1.920 Total 42.210 22.094 26.815 24.147 21.292 b) Uses of Fund: i) Increase in Fixed Assets: 19.200 ii) Preliminary Expenses: 1.850 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 3.950 v) Decrease in Loan: 3.500 3.500 3.500 3.500 3.500 vi) Interest payable: 2.275 1.820 1.365 0.910 0.455 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 30.775 5.320 4.865 4.410 3.955 Opening Balance: 11.435 28.209 50.159 69.896 Surplus/Deficit Generated: 11.435 16.774 21.950 19.737 17.337 Closing Balance: 11.435 28.209 50.159 69.896 87.233M] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.25 1.25 1.25 1.25 1.25 ii) Cumulated Net Profit: 13.02 31.37 54.90 76.22 95.13 Net Worth: 14.27 32.62 56.15 77.47 96.38 iii) Subsidy: 6.25 6.25 6.25 6.25 6.25 iv) Loan at Bank: 14.00 10.50 7.00 3.50 0.00 Total 34.52 49.37 69.40 87.22 102.63 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 21.05 19.13 17.21 15.29 13.37 Less depreciation on Fixed Assets: 1.92 1.92 1.92 1.92 1.92 i) Net Block: 19.13 17.21 15.29 13.37 11.45 ii) Working Capital: 3.95 3.95 3.95 3.95 3.95 iii) Cash balance: 11.44 28.21 50.16 69.90 87.23 Total 34.52 49.37 69.40 87.22 102.63 Total Investment: 25.000 25.00 22.73 20.91 19.54 18.63 Return on Investment: 52.06 80.77 112.56 109.09 101.54 [100XNet profit/Total Investment] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-37]N] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 4.935 3.740 3.285 2.830 2.375 Other Operating Expenses 60% 19.530 20.897 22.360 23.925 25.600 Total 24.465 24.637 25.645 26.755 27.975 BEP [in % of target business] 58.704 52.721 48.885 52.562 56.782 [100xFC/(FC+Net profit)]O] Machinery & Equipment Suppliers: 1. M/s. Elder Machanical Works A-59, Shyam Nagar New Delhi-110 018. 2. M/s. G.G. Engineering Works 5/1-B, Industrial Estate Kirtinagar, New Delhi-110 015 3. M/s. Haria Engg. Works Shankar Tekari Industrial Estate Post Box No.643 4. M/s. Kelachjandra Iron & Steel Works Chingawanam Kerala-686 537 5. Ms/. Major Machine Tools B-XXX-94 Sherpur Khurd Byepass Road Ludhiana Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-38]A] Introduction: Rubber moulded products find wide usage both in industrial applications and also as consumer items. Hot water bags and ice bags are the consumer items required in every day life. The raw materials are available indigenously. The BIS specification for hot water bags is IS -1867-1975 and that of ice bags is IS-3867-1966.B] Market Potential of the product: At present health sector in the country has been experiencing speedy development. With more and more emphasis on medicine and opening of hospitals/clinics both in urban as well as rural areas, the demand for hot water bags and ice bags is increasing many folds. In addition to the hospital/clinic requirements these items have become essential households’ items as a safe guard to diseases that may occur. However, the market for hot water bags and ice bags is quality conscious and “Duck Back” and “Hicks” are the reputed national brands producing these items. Therefore, it is important that the new units producing hot water bags and ice bags should immediately acquire quality trade mark for these items to enable them make healthy competition in the market.C] Raw Material: The major raw materials and consumables required per month for production of hot water bags & ice bags are as follows. The procurement costs of these materials are to be considered at the prevailing market price. • Smoked sheet : 1,200 kg. • Renacit 7 : 6 kg. • Precipitated calcium carbonate : 1,000 kg. • Zinc oxide : 125 kg. • Paraffin oil : 35 kg. • Stearic acid : 12 kg. • HSL Beads : 20 kg. • Paraffin wax : 12 kg. • Vulcacit F : 15 kg. • Vulcacit thiuram : 2 kg. • Sulphur : 15 kg. • Colour : 6 kg. • Mould releasing agents silicon : 1 kg. emulsions etc. • Packing materials viz bags and : L.S. Paper cartons. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-39]D] Production Process: A typical composition of rubber compound used for the manufacture of hot water bags/ice bags is as given below: • Smoked sheet : 100.0 kg. • Renacit 7 : 0.5 kg. • Precipitated calcium carbonate : 80.0 kg. • Zinc oxide : 10.0 kg. • Paraffin oil : 3.0 kg. • Stearic acid : 1.0 kg. • HSL Beads : 1.5 kg. • Paraffin wax : 1.0 kg. • Vulcacit F : 1.2 kg. • Vulcacit thiuram : 0.12 kg. • Sulphur : 1.2 kg. • Colour : 0.5 kg. Curing at 1500C for 10 minutes The major process steps involved are as follows: • Smoked sheet and Renacit 7 are masticated on mixing mill and left for maturation for a period of 24 hours. • Zinc oxide and stearic acid are then mixed to the above compound mix. • Then Precipitated Calcium Carbonate, Paraffin oil HSL beads and Paraffin Wax are mixed. • Vulcacit F and thiuram are mixed with the compound mix. • Lastly sulphur and colour are added and the mass is left to mature for 8 hours. The rubber compound sheets are then prepared and transferred to working table. According to pre- determined size bags, pieces are cut from the sheet with the help of pattern. The two sides of the bags are joined together and cured in a hydraulic press.E] Suggested Installed Capacity: The production basis for a typical tiny unit would be as under: Working hours/day : 8 (1 shift) Working days in a year : 300 Annual Production capacity : Hot water bags: 40,000 Nos. Ice bags: 40,000 Nos. The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first, second and third year and onwards of its operation.F] Manpower Requirement: The unit will employ 12 Nos. of skilled & un-skilled person. 1 Administrative Staffs 4 No. 2 Factory Staff 8 No. Total 12 Nos. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-40]G] Machineries & Equipments required: Machines/Equipments Quantity (Nos) Amount Required (In Lakh Rs.) 1 Rubber mixing mill with chilled cast iron rolls, 1 12” x 30” fitted with 30 HP motor reduction gear box, complete with all accessories 2 Hydraulic press 17” x 17” 4 day light, steam 1 heated 30 tonnes max. pressing power, ram stroke 11’ hydraulic arrangement operated with 1 HP motor 3 Hydraulic press 14” x 14” 4 day light, steam heated 1 17 20 tonnes max. pressing power, hydraulic arrangement with 1 HP motor 4 Steam heated press, hand operated size 14” x 14” 1 5 Boiler cross-tube, vertical capacity 300 lbs./hour 1 6 Weighing machine 1 7 Testing & quality control equipment 1 Set 8 Moulds and hand tools LS 17H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 2500 Sq. Ft. 2. Power 110 KW/Day 3. Water 2000 L/Day 4. Building covering 1200 Sq. Ft.I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: (Rented) 0.00 iv. Plant & Machineries: 17.00 v. Misc. Fixed Assets: 3.30 (Furnitures, Fixtures, electrification etc.) Total 20.30 vi. Preliminary & Pre-operative expenses: 0.60 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 20.90 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Months] 1.55 ii. Finished goods [15 Days] 1.00 iii. Receivables [15 days] 1.55 Total amount of Working Capital required 4.10 Total Fund Required for the Project: [1 + 2] Rs 25.00 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-41] 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 17.50 15.00 ii. Subsidy entitled: 6.25 8.75 iii. Own contribution @ 5% of Project Cost: 1.25 1.25 Total 25.00 25.00J] Annual Sales Forecasting: @ 70% Capacity Utilisation. The basis on which average ex-factory sales realization from the sale of hot water bags and ice bags at 70% capacity utilization is as follows: Items Qnty (Pairs) Rate (Rs/Piece) Amount (Lakh Rs) 1 Hot Water Bags 28000 78 21.84 2 Ice Bags 28000 65 18.2 Total 40.04 Total Projected annual sale = Rs 40.04 LakhK] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 40.04 45.76 51.48 51.48 51.48 2 Less Cost of Materials: 18.60 21.26 23.91 23.91 23.91 3 Gross Profit (1-2): 21.44 24.50 27.57 27.57 27.57 4 Less other operating expenses: i) Rent for Land: 1.20 1.28 1.37 1.47 1.57 ii) Salary for staff: 6.50 6.96 7.44 7.96 8.52 iii) Electricity and maintainance: 1.00 1.07 1.14 1.23 1.31 iv) Office expenses (Stationary, Telephone etc.) 0.25 0.27 0.29 0.31 0.33 v) Advertising and Selling expenses: 4.00 4.28 4.58 4.90 5.24 vi) Insurance and other misc. expenses: 0.20 0.21 0.23 0.25 0.26 Total of Sl. 4. 13.15 14.07 15.06 16.11 17.24 5 Profit before Depriciation, Interest and Taxes(3-4): 8.29 10.43 12.51 11.46 10.33 6 Less Depriciation on Fixed Assets: 2.03 2.03 2.03 2.03 2.03 7 profit before interest and taxes (5-6): 6.26 8.40 10.48 9.43 8.30 8 Less Interest payable on loan: 2.28 2.02 1.69 1.17 0.59 9 Profit before taxes (7-8): 3.99 6.39 8.79 8.26 7.7110 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 3.99 6.39 8.79 8.26 7.71 Percentage of Profit on Sale: 9.95 13.96 17.08 16.04 14.9812 Provision for repayment of loan: 2.00 2.50 4.00 4.50 4.5013 Retained Profit (11-12): 1.99 3.89 4.79 3.76 3.2114 Net Cash Accruals 4.02 5.92 6.82 5.79 5.24 [Depreciation added back with retained profit]15 Cumulated Net profit: 3.99 10.37 19.16 27.42 35.13 Pay-Back Period: 44 Months Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-42]L] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 17.50 15.50 13.00 9.00 4.50 Proposed Repayment during the year: 2.00 2.50 4.00 4.50 4.50 Refundable loan at the end of the year: 15.50 13.00 9.00 4.50 0.00 Total Debt-Service [Interest+Repayment]: 4.28 4.52 5.69 5.67 5.09 Fund Available for Debt-Service: 8.29 10.43 12.51 11.46 10.33 Debt-Service Coverage Ratio: 1.94 2.31 2.20 2.02 2.03M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 1.250 ii) Loan from Bank: 17.500 iii) Increase in Subsidy: 6.250 iv) Profit Before Interest and taxes: 6.260 8.402 10.480 9.426 8.299 v) Depreciation added back: 2.030 2.030 2.030 2.030 2.030 Total 33.290 10.432 12.510 11.456 10.329 b) Uses of Fund: i) Increase in Fixed Assets: 20.300 ii) Preliminary Expenses: 0.600 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 4.100 v) Decrease in Loan: 2.000 2.500 4.000 4.500 4.500 vi) Interest payable: 2.275 2.015 1.690 1.170 0.585 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 29.275 4.515 5.690 5.670 5.085 Opening Balance: 4.015 9.932 16.753 22.539 Surplus/Deficit Generated: 4.015 5.917 6.820 5.786 5.244 Closing Balance: 4.015 9.932 16.753 22.539 27.783N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.25 1.25 1.25 1.25 1.25 ii) Cumulated Net Profit: 3.99 10.37 19.16 27.42 35.13 Net Worth: 5.24 11.62 20.41 28.67 36.38 iii) Subsidy: 6.25 6.25 6.25 6.25 6.25 iv) Loan at Bank: 15.50 13.00 9.00 4.50 0.00 Total 26.99 30.87 35.66 39.42 42.63 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 20.90 18.87 16.84 14.81 12.78 Less depreciation on Fixed Assets: 2.03 2.03 2.03 2.03 2.03 i) Net Block: 18.87 16.84 14.81 12.78 10.75 ii) Working Capital: 4.10 4.10 4.10 4.10 4.10 iii) Cash balance: 4.02 9.93 16.75 22.54 27.78 Total 26.99 30.87 35.66 39.42 42.63 Total Investment: 25.000 25.00 22.73 20.71 19.02 17.85 Return on Investment: 15.94 28.11 42.44 43.41 43.21 [100XNet profit/Total Investment] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-43]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 5.505 4.045 3.720 3.200 2.615 Other Operating Expenses 60% 7.170 7.672 8.209 8.784 9.398 Total 12.675 11.717 11.929 11.984 12.013 BEP [in % of target business] 60.458 52.900 48.811 51.124 53.770 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: 1. M/S Indian Expeller Works, A- Naroda Industrial Estate, Naroda, Ahmedabad -2 2. M/s West Coast Industries, Karithimanahalli, Mysore Road, Cross, Bangalore- 26 3. M/s Santosh Industries, A-1, Sone Udyog. Parsi Panchayat Marg, Andheri (East) Mumbai – 69 4. M/s Modern Engineering Works, 310, Jogani Industrial Estate, 541, Senapti Bapat Marg, Dadar, Mumbai - 28 5. M/s ICI India Pvt. Ltd. P.O Box No. 310, Cresent House, Ballard Estte, Mumbai 6. M/s Kamani Metallic Oxide Pvt. Ltd. Nicols Road, Kamani Chambers, Mumbai -1. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-44]A] Introduction: All the major cities in India have public aquariums for display of ornamental fishes and amusement of children and adults. Since, there is no public aquarium in the state of Tripura, the same may be proposed to set up in the capital city of Agartala.B] Market Potential of the product: The project is viable only when it is implemented in a prominent location like some where near the Royal Palace in Tripura where every day a good number of visitors visit the palace. It is expected that most of these visitors would also simultaneously visit the public aquarium and hence the implementing authority would earn satisfactory amount of revenue.C] Raw Material: The major raw materials and consumables required for the unit are colorful fishes of bigger size for display in the aquarium (stocking of three hundred and fifty ornamental fishes of different variety), Agile fishes to be kept in the ponds and the local variety the species which are of rare occurrence. Also Pebbles, Aquatic Plants, Replacement of Fish Stock, Feeding / Medicine / chemicals required for maintenance are to be acquired. These raw materials and consumables can be procured from the capital city of Agartala/ Guwahati (Assam)/ Kolkata(West Bengal).D] Suggested Installed Capacity (Facilities): Working Days per year : 300 days in a year. No. of Shift : 8 hours in one shift. The public aquarium will house the aquarium units comprising of 40 (forty) big glass tanks, 2 (two) ponds, a restaurant and a retail outlet for the sale of ornamental fishes both exotic as well indigenous. The structure that will house the aquarium units will be built up in the Pagoda Type. There will be 2 (two) shallow ponds at the entry point. The placement of the ponds is suggested to be such so that the children visitors as well as other visitors can amuse themselves by feeding and playing with the fishes. To attract more visitors the proposed unit may have a restaurant. The cost and the income from the restaurant has not be included in the cost of the project as it has been assumed that it will be a self sustaining unit. Public aquarium could be a good avenue for the selling of aquarium units and ornamental fishes, as there could be a lot of impulsive buying. Hence, it is proposed that a retail outlet for ornamental fish be set up. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-45]F] Manpower Requirement: The unit will employ 10 Nos. of skilled & un-skilled person. 1 Manager 1 No. 2 Skilled Worker 4 No. 3 Helper 4 Nos 4 Chowkidar 1 No. Total 10 Nos.G] Machineries & Equipments required: Aeration Unit Machines/Equipments Quantity (Nos) Amount Required (In Lakh Rs.) 1 Hi Blower Air Pumps (GJL-40) 1 2 Air Regulator 40 3 Power Filter 20 11 4 Air Stone 40 5 Flexible Pipe for Aeration Unit LS 6 Generator ( 5 KVA) 1 7 Glass Equipments LS 11H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 450 Sq. mt. 2. Power 10 KW 3. Water 5000 L/DayI] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rented) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 9.00 iv. Plant & Machineries: 11.00 v. Misc. Fixed Assets: 3.00 (Furnitures, Fixtures, electrification etc.) Total 23.00 vi. Preliminary & Pre-operative expenses: 0.60 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 23.60 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Months] 0.50 ii. Finished goods [1 Months] 0.10 iii. Receivables [1 Months] 0.50 Total amount of Working Capital required 1.10 Total Fund Required for the Project: [1 + 2] Rs 24.70 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-46] 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 17.29 14.82 ii. Subsidy entitled: 6.18 8.65 iii. Own contribution @ 5% of Project Cost: 1.24 1.24 Total 24.70 24.70J] Annual Sales Forecasting: Items Qnty Rate (Rs/Piece) Amount (Lakh Rs) 1 Entry Tickets 82500 25 20.63 2 By impulsive selling of aquarium units and ornamental fishes 3 Total 23.625 Total Projected annual sale = Rs 23.63 LakhK] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual increase in Business 10 % Annual Increase in Operating Expenses: 7 % Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 1 Expected Sales: 23.63 25.99 28.59 31.44 34.59 2 Less Cost of Materials: 6.00 6.60 7.26 7.99 8.78 3 Gross Profit (1-2): 17.63 19.39 21.33 23.46 25.80 4 Less other operating expenses: i) Rent for Land: 0.60 0.64 0.69 0.74 0.79 ii) Salary for staff: 5.50 5.89 6.30 6.74 7.21 iii) Electricity and maintainance: 1.00 1.07 1.14 1.23 1.31 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 1.00 1.07 1.14 1.23 1.31 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 8.40 8.99 9.62 10.29 11.01 5 Profit before Depriciation, Interest and Taxes(3-4): 9.23 10.40 11.71 13.17 14.79 6 Less Depriciation on Fixed Assets: 2.30 2.30 2.30 2.30 2.30 7 profit before interest and taxes (5-6): 6.93 8.10 9.41 10.87 12.49 8 Less Interest payable on loan: 2.25 1.99 1.60 1.21 0.61 9 Profit before taxes (7-8): 4.68 6.11 7.81 9.66 11.8810 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 4.68 6.11 7.81 9.66 11.88 Percentage of Profit on Sale: 19.80 23.52 27.33 30.72 34.3612 Provision for repayment of loan: 2.00 3.00 3.00 4.60 4.6913 Retained Profit (11-12): 2.68 3.11 4.81 5.06 7.1914 Net Cash Accruals 4.98 5.41 7.11 7.36 9.49 [Depreciation added back with retained profit]15 Cumulated Net profit: 4.68 10.79 18.60 28.26 40.15 Pay-Back Period: 42 Months Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-47]L] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 17.29 15.29 12.29 9.29 4.69 Proposed Repayment during the year: 2.00 3.00 3.00 4.60 4.69 Refundable loan at the end of the year: 15.29 12.29 9.29 4.69 0.00 Total Debt-Service [Interest+Repayment]: 4.25 4.99 4.60 5.81 5.30 Fund Available for Debt-Service: 9.23 10.40 11.71 13.17 14.79 Debt-Service Coverage Ratio: 2.17 2.09 2.55 2.27 2.79M] Projected Cash Flow Statement: Amounts are in Lakh Rs. i) Own Investment: 1.235 ii) Loan from Bank: 17.290 iii) Increase in Subsidy: 6.175 iv) Profit Before Interest and taxes: 6.925 8.100 9.409 10.869 12.494 v) Depreciation added back: 2.300 2.300 2.300 2.300 2.300 Total 33.925 10.400 11.709 13.169 14.794 b) Uses of Fund: i) Increase in Fixed Assets: 23.000 ii) Preliminary Expenses: 0.600 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 1.100 v) Decrease in Loan: 2.000 3.000 3.000 4.600 4.690 vi) Interest payable: 2.248 1.988 1.598 1.208 0.610 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 28.948 4.988 4.598 5.808 5.300 Opening Balance: 4.977 10.389 17.500 24.861 Surplus/Deficit Generated: 4.977 5.412 7.111 7.361 9.494 Closing Balance: 4.977 10.389 17.500 24.861 34.356N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.24 1.24 1.24 1.24 1.24 ii) Cumulated Net Profit: 4.68 10.79 18.60 28.26 40.15 Net Worth: 5.91 12.02 19.84 29.50 41.38 iii) Subsidy: 6.18 6.18 6.18 6.18 6.18 iv) Loan at Bank: 15.29 12.29 9.29 4.69 0.00 Total 27.38 30.49 35.30 40.36 47.56 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 23.60 21.30 19.00 16.70 14.40 Less depreciation on Fixed Assets: 2.30 2.30 2.30 2.30 2.30 i) Net Block: 21.30 19.00 16.70 14.40 12.10 ii) Working Capital: 1.10 1.10 1.10 1.10 1.10 iii) Cash balance: 4.98 10.39 17.50 24.86 34.36 Total 27.38 30.49 35.30 40.36 47.56 Total Investment: 24.700 24.70 22.45 20.46 18.87 17.66 Return on Investment: 18.94 27.22 38.17 51.21 67.30 [100XNet profit/Total Investment] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-48]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 5.148 4.288 3.898 3.508 2.910 Other Operating Expenses 60% 4.680 5.008 5.358 5.733 6.135 Total 9.828 9.295 9.256 9.241 9.044 BEP [in % of target business] 51.582 47.197 44.149 41.237 37.940 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: The above mentioned equipment as well as raw materials and consumables will be available in the market of Agartala / Guwahati (Assam) / Kolkata (West Bengal). Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-49]A] Introduction: Poultry meat is the fastest growing component of global meat production. Poultry production in the country has shown a steady increase in the last decade. As a result, there has been a sharp rise in the availability of eggs and broilers. The country produced 800 million broilers in 2002 as compared to 350 million in 1995. The production of poultry meat in 2002 was 975 thousand tons as compared to 576 thousand tons in 1995. The value of India’s poultry exports between 2005-06 stood at Rs 167.58 crore. India, the world’s second largest developing economy, now has a large and rapidly expending poultry sector. This sector provides a great employment opportunity. It is estimated that more than 2 million people are employed directly or indirectly in this sector. It is further estimated that an increase of one egg and 50 gms. of meat per capita consumption would create an employment opportunity for about 25,000 and 20,000 persons, respectively.B] The Product Uses: Poultry meat is the fasted growing animal protein, the uses of eggs and broiler meat are on the increase with growing population. Chicken is most popular among the non-vegetarian delicious dishes on Indian dining table which is one or other type of the chicken based items.C] Market Potential of the product: Despite the fact that the country’s poultry industry is the fastest growing in the world, its potential to attract big-time foreign investment is negligible and will necessitate a host of changes – greater integration, better cost-efficiencies and improvement in distribution. Poultry industry’s potential for growth also stems from the fact that 80 percent of India is non- vegetarian. Besides, poultry has no religious sentiment. India is likely to be among the fastest growing poultry consumption nations, due to rising affordability, population growth and conversion from vegetarianism. This is one reason that international market may look at the Indian poultry industry. In the North Eastern States as also in Tripura there is a substantial shortage of chicken meats and eggs against the market demand. The poultry industry is well dominated in the Southern States of the country with nearly 60-70% of the total output coming from these States. However, marketing of the final product is still under the control of traders.D] Availability of Raw Material: The basic raw material for hatchery is foundation egg. The fonudatic egg will be required to procure from outside the region. The other materials are medicines, glucose and poultry feed which are locally available. 1 Foundation Eggs for broiler/layer 3,51,000 @Rs 7/- each. Rs 24.57 Lakh 2 Medicine/Vaccination etc. @ Rs.2/-each. Rs 8.5 Lakh Total Rs 33.07 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-50]E] Production Process: The major process steps are : 1) Collection of eggs. 2) Testing of eggs using testing machine. 3) Laying the selected eggs inside the incubator carefully for setting. 4) After 18 days transfer the eggs to planting chamber. 5) The hatchery operation is 3 days duration. After 3 days baby chicks comes out from egg shell. 6) Removing baby chicks from the incubator. 7) The second batch of eggs should be placed in incubator after 3 days gap from the first batch operation. 8) Placing the baby chicks in separate chamber. 9) Medicines to be placed in incubator to avoid diseases. Process Flow Chart:-F] Suggested Installed Capacity: Capacity utilization 70% Working days/year 300 Days Annual production 351000 ChicksG] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 1000 Sq. Ft. 2. Power 5 KW 3. Water 5000 Ltrs / DayH] Machineries & Equipments required: Machines/Equipments Quantity (Nos) Amount Required (In Lakh Rs.) 1 Poultry egg setter 30,000 eggs capacity chickman 1 series, pressed laminated panel without bottom. 2 Poultry egg hatcher 10,000 Eggs capacity chickman 1 series, fiber body, without bottom. Essential spares/Accessories like : 3 Setting Trolley 2 4 Electric Motor ¾ H.P. 1 5 Electric Motor ½ H.P. 1 6 Electric Motor 1/3 H.P.GE. 1 6.25 7 Transfer table 1 8 Jumbo Thermometer 1 9 Relay Box 1 10 Turning Timber 1 11 Dry Wet Thermometer 4 12 Heater U Type 2 13 Solenoid valve complete set 1 14 Solenoid Coil. 2 Total 6.25 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page -51]I] Manpower Requirement: The unit will employ 5 Nos. of skilled & un-skilled person. 1 Administrative Staff 1 No. 2 Factory Worker 4 No. Total 5 Nos.J] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: (Rented/Leased) 0.00 iv. Plant & Machineries: 6.25 v. Misc. Fixed Assets: 3.00 (Furnitures, Fixtures, electrification etc.) Total 9.25 vi. Preliminary & Pre-operative expenses: 2.50 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 11.75 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [15 Days] 1.38 ii. Finished goods [15 Days] 2.27 iii. Receivables [15 Days] 3.00 Total amount of Working Capital required 6.65 Total Fund Required for the Project: [1 + 2] Rs 18.40 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 12.88 11.04 ii. Subsidy entitled: 4.60 6.44 iii. Own contribution @ 5% of Project Cost: 0.92 0.92 Total 18.40 18.40K] Annual Sales Forecasting: @ 70% Capacity Utilisation. Items Qnty (Nos.) Rate (Rs) Amount (Rs) Day Old Chick 351000 14 4914000 4914000 Total Projected annual sale = Rs 49.14 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-52]L] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 49.14 56.16 63.18 63.18 63.18 2 Less Cost of Materials: 33.07 37.79 42.52 42.52 42.52 3 Gross Profit (1-2): 16.07 18.37 20.66 20.66 20.66 4 Less other operating expenses: i) Rent for Land: 0.36 0.39 0.41 0.44 0.47 ii) Salary for staff: 5.00 5.35 5.72 6.13 6.55 iii) Electricity and maintainance: 1.50 1.61 1.72 1.84 1.97 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 2.00 2.14 2.29 2.45 2.62 vi) Insurance and other misc. expenses: 0.20 0.21 0.23 0.25 0.26 Total of Sl. 4. 9.26 9.91 10.60 11.34 12.14 5 Profit before Depriciation, Interest and Taxes(3-4): 6.81 8.46 10.06 9.32 8.52 6 Less Depriciation on Fixed Assets: 0.93 0.93 0.93 0.93 0.93 7 profit before interest and taxes (5-6): 5.89 7.53 9.13 8.39 7.60 8 Less Interest payable on loan: 1.67 1.34 1.00 0.67 0.33 9 Profit before taxes (7-8): 4.21 6.19 8.13 7.72 7.2610 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 4.21 6.19 8.13 7.72 7.26 Percentage of Profit on Sale: 8.57 11.03 12.87 12.22 11.5012 Provision for repayment of loan: 2.58 2.58 2.58 2.58 2.5813 Retained Profit (11-12): 1.64 3.62 5.55 5.15 4.6914 Net Cash Accruals 2.56 4.54 6.48 6.07 5.61 [Depreciation added back with retained profit]15 Cumulated Net profit: 4.21 10.40 18.53 26.26 33.52 Pay-Back Period: 36 MonthsM] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 12.88 10.30 7.73 5.15 2.58 Proposed Repayment during the year: 2.58 2.58 2.58 2.58 2.58 Refundable loan at the end of the year: 10.30 7.73 5.15 2.58 0.00 Total Debt-Service [Interest+Repayment]: 4.25 3.92 3.58 3.25 2.91 Fund Available for Debt-Service: 6.81 8.46 10.06 9.32 8.52 Debt-Service Coverage Ratio: 1.60 2.16 2.81 2.87 2.93 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-53]N] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.920 ii) Loan from Bank: 12.879 iii) Increase in Subsidy: 4.599 iv) Profit Before Interest and taxes: 5.885 7.533 9.135 8.393 7.598 v) Depreciation added back: 0.925 0.925 0.925 0.925 0.925 Total 25.208 8.458 10.060 9.318 8.523 b) Uses of Fund: i) Increase in Fixed Assets: 9.250 ii) Preliminary Expenses: 2.500 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 6.648 v) Decrease in Loan: 2.576 2.576 2.576 2.576 2.576 vi) Interest payable: 1.674 1.339 1.005 0.670 0.335 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 22.648 3.915 3.580 3.245 2.911 Opening Balance: 2.560 7.103 13.582 19.654 Surplus/Deficit Generated: 2.560 4.542 6.479 6.072 5.613 Closing Balance: 2.560 7.103 13.582 19.654 25.267O] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.92 0.92 0.92 0.92 0.92 ii) Cumulated Net Profit: 4.21 10.40 18.53 26.26 33.52 Net Worth: 5.13 11.32 19.45 27.18 34.44 iii) Subsidy: 4.60 4.60 4.60 4.60 4.60 iv) Loan at Bank: 10.30 7.73 5.15 2.58 0.00 Total 20.03 23.65 29.20 34.35 39.04 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 11.75 10.83 9.90 8.98 8.05 Less depreciation on Fixed Assets: 0.93 0.93 0.93 0.93 0.93 i) Net Block: 10.83 9.90 8.98 8.05 7.13 ii) Working Capital: 6.65 6.65 6.65 6.65 6.65 iii) Cash balance: 2.56 7.10 13.58 19.65 25.27 Total 20.03 23.65 29.20 34.35 39.04 Total Investment: 18.398 18.40 16.72 15.38 14.38 13.71 Return on Investment: 22.89 37.03 52.85 53.71 52.98 [100XNet profit/Total Investment]P] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 2.959 2.264 1.930 1.595 1.260 Other Operating Expenses 60% 5.340 5.714 6.114 6.542 7.000 Total 8.299 7.978 8.043 8.136 8.259 BEP [in % of target business] 54.928 48.542 44.431 46.616 49.214 [100xFC/(FC+Net profit)]Q] Machinery & Equipment Suppliers: 1. M/s Karamsar Poultry Appliances(Regd.). 2. M/s Metro Poultry Products (I) Ltd., C-120, Hari Nagar Clock Tower, Paltanbazar, New Delhi-110 64. Guwahati-8. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-54]A] Introduction: Ornamental fishes usually mean attractive colourful fishes of various characteristics, which are kept as pets in confined space of an aquarium or a garden pool for fun and fancy. Ornamental fishes are usually kept in glass aquarium and hence popularly known as “Aquarium Fishes”. These living jewels need not always have bright colours; as sometimes their peculiar characteristics such as body colour, morphology, mode of taking food etc. may also add to their attractiveness. The North Eastern Region of India is blessed with rich biodiversity and fisheries resources. With more than 90% of population being fish eaters, there is heavy demand for fish but a wide gap exists between supply and demand. The region produces over 0.214 million tons of fish annually, with almost 50% coming from aquaculture development in the region is taking place at a rapid rate. However, efforts are necessary to increases the present level of production through both horizontal and vertical expansion. The region has rivers, coldwater streams, floodplain wet lands, reservoirs, lakes, ponds, paddy fields, and mini-barrages to support large-scale aquaculture activities, which can not only produce fish to meet regional requirements, but also export the surplus.B] Commercially Important Species Ornamental fishes keeping and its propagation has been an important activity for many which provide not only aesthetic pleasure but also financial openings. About 600 ornamental fish species have been reported world wide from various aquatic environments. Already 217 fish species belonging to 136 genera has been identified in North Eastern Region, of which about 150 species have been reported to be of ornamental value and in case of more than 50 species, overseas demand has been established.C] Market Potential of the product: Keeping of aquarium has emerged as the second most popular hobby in recent years, next to photography. The ever-increasing demand for aquarium fishes gradually paved the avenue towards global trade of ornamental fishes. India’s overall trade presently is over Rs. 150 million, About 80% of ornamental fishes from India to International market are exported via Kolkata Airport, of which the lion’s share is contributed from North Eastern Region including Tripura. North Eastern Region is blessed by the presence of mild climate and abundance of ornamental fishes in water bodies and contributes the lion’s share of total fish species in India. However, there is vast unexplored potential for indigenous ornamental fishes in this region and also in Tripura. Scientific and systematic exploration of this potential will definitely ensure a significant place for our Region in this sphere, besides employment generation and earning of foreign exchange.D] Raw Material/Consumable/Packaging: The brood-stock to be selected for breeding should be superior quality so that they produce quantity fish for sale. The basic raw material for breeding & rearing is constant availability of agro-based by products like oil cake, rice polish and wheat bran, and animal based protein such as fish meal and prawn-head meal will facilitate preparation of pelleted diet for the fish. Ornamental aquarium fish are packed in a polythene bag (thickness not less than 0.1 mm) filled to 1/3 of its volume. The plastic bag should be filled with three parts to one part water and rest oxygen. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-55]E] Production Process: Three type of technology required for exotic / ornamental fish, they are: 1. Natural 2. Hypophysation 3. Stripping method of breeding In Natural technique, two males and one female brooder, which form a set, are selected and released in the breeding tank, preferably cement with required environment. The brooders must be completely ripe and ready to breed. These brooders are released in the evening, when they usually breed at night. After they breed, the brooders are removed and the eggs are allowed to hatch in the same tank. In Hypophysation, it is difficult to breed ornamental fish seed are tried with this technique. While the composition and cement tank environment brooder set is same as in natural technique, the female brooders are injected with fish pituitary hormone, prepared after standard method @ 2-3 mg./kg body weight of the brooder. After 6 hours the female is again injected with fish pituitary hormone, as second dose, @ 5-6 mg./kg body weight, of the male brooder. After hormone administration, both male and female brooders are released in the cement-breeding tank, where the fish breed usually within 3-6 hours. In Stripping technique, the female brooder is held over a plastic or glass bowl. Then its abdomen is slowly and gently pressed towards the genital opening. The eggs will ooze out and fall on the bowl. After the eggs are completely collected, two males, one after another ate stripped to collect their milt over eggs. When the eggs will be fertilized, the fertilized eggs are processed in the hatchery in normal way for hatching.F] Production at 100% Capacity (per annum): The capacity of the proposed unit has been estimated as under: • 13 exotic varieties of fish and 150 fresh water ornamental fishes species have been found to be viable for export from the region have been considered in the proposed project. • The capacity has been planned for production of 25,000 units of exotic varieties fishes under 13 species and 80.000 units of wild caught ornamental fishes under 150 species, with flexibility for changes in the amount of production. Annual production 150000 Ornamental & Exotic FishG] Requirement of Infrastructure: The major infrastructure requirements are – 1. Open Shed area: 1000 Sq. Ft. 2. Office, Showroom, packing area etc. 500 Sq Ft. 2. Power 5 KW 3. Water 5000 Ltrs / Day Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page -56]H] Machineries & Equipments required: Amount Required (In Lakh Rs.) i. Hose pipe, x. High blow air pumps, ii. Feeding bags, xi. Air regulators, iii. Sprinkler, xii. Flexible pipes for aeration, iv. Generator, xiii. Glass equipments, v. Microscope, xiv. Hand nets short & long, vi. Air pump, xv. Plastic cage, vii. Power filter, xvi. Feeders, 5.4 viii. Air stone, xvii. Oxygen cylinders with accessories, ix. External power filters, xviii. Happa & other misc. tools Total 5.4I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (On Lease) 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: 12.50 iv. Plant & Machineries: 5.40 v. Misc. Fixed Assets: 1.80 (Furnitures, Fixtures, electrification etc.) Total 19.70 vi. Preliminary & Pre-operative expenses: 1.20 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 20.90 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 0.50 ii. Finished goods [20 Days] 0.85 iii. Receivables [7 Days] 0.60 Total amount of Working Capital required 1.95 Total Fund Required for the Project: [1 + 2] Rs 22.85 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 16.00 13.71 ii. Subsidy entitled: 5.71 8.00 iii. Own contribution @ 5% of Project Cost: 1.14 1.14 Total 22.85 22.85 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-57]J] Annual Sales Forecasting: @ 70% Capacity Utilisation. Items Qnty (Nos.) Rate (Rs) Amount (Rs) Ornamental / 84000 38 3192000 Exotic Fish 3192000 [assumed 20% mortality] Total Projected annual sale = Rs 31.92 LakhK] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 31.92 36.48 41.04 41.04 41.04 2 Less Cost of Materials: 6.00 6.86 7.71 7.71 7.71 3 Gross Profit (1-2): 25.92 29.62 33.33 33.33 33.33 4 Less other operating expenses: i) Rent for Land: 0.50 0.54 0.57 0.61 0.66 ii) Salary for staff: 8.00 8.56 9.16 9.80 10.49 iii) Electricity and maintainance: 2.00 2.14 2.29 2.45 2.62 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 2.00 2.14 2.29 2.45 2.62 vi) Insurance and other misc. expenses: 0.20 0.21 0.23 0.25 0.26 Total of Sl. 4. 12.90 13.80 14.77 15.80 16.91 5 Profit before Depriciation, Interest and Taxes(3-4): 13.02 15.82 18.56 17.52 16.42 6 Less Depriciation on Fixed Assets: 1.97 1.97 1.97 1.97 1.97 7 profit before interest and taxes (5-6): 11.05 13.85 16.59 15.55 14.45 8 Less Interest payable on loan: 2.08 1.66 1.25 0.83 0.42 9 Profit before taxes (7-8): 8.97 12.19 15.34 14.72 14.0310 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 8.97 12.19 15.34 14.72 14.03 Percentage of Profit on Sale: 28.10 33.41 37.38 35.87 34.1912 Provision for repayment of loan: 3.20 3.20 3.20 3.20 3.2013 Retained Profit (11-12): 5.77 8.99 12.14 11.52 10.8314 Net Cash Accruals 7.74 10.96 14.11 13.49 12.80 [Depreciation added back with retained profit]15 Cumulated Net profit: 8.97 21.16 36.50 51.22 65.25 Pay-Back Period: 23 Months Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-58]L] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 16.00 12.80 9.60 6.40 3.20 Proposed Repayment during the year: 3.20 3.20 3.20 3.20 3.20 Refundable loan at the end of the year: 12.80 9.60 6.40 3.20 0.00 Total Debt-Service [Interest+Repayment]: 5.28 4.86 4.45 4.03 3.61 Fund Available for Debt-Service: 13.02 15.82 18.56 17.52 16.42 Debt-Service Coverage Ratio: 2.47 3.25 4.17 4.35 4.54M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 1.143 ii) Loan from Bank: 15.995 iii) Increase in Subsidy: 5.713 iv) Profit Before Interest and taxes: 11.050 13.850 16.587 15.553 14.446 v) Depreciation added back: 1.970 1.970 1.970 1.970 1.970 Total 35.870 15.820 18.557 17.523 16.416 b) Uses of Fund: i) Increase in Fixed Assets: 19.700 ii) Preliminary Expenses: 1.200 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 1.950 v) Decrease in Loan: 3.199 3.199 3.199 3.199 3.199 vi) Interest payable: 2.079 1.663 1.248 0.832 0.416 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 28.128 4.862 4.447 4.031 3.615 Opening Balance: 7.742 18.699 32.809 46.301 Surplus/Deficit Generated: 7.742 10.957 14.110 13.492 12.802 Closing Balance: 7.742 18.699 32.809 46.301 59.102N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.14 1.14 1.14 1.14 1.14 ii) Cumulated Net Profit: 8.97 21.16 36.50 51.22 65.25 Net Worth: 10.11 22.30 37.64 52.36 66.39 iii) Subsidy: 5.71 5.71 5.71 5.71 5.71 iv) Loan at Bank: 12.80 9.60 6.40 3.20 0.00 Total 28.62 37.61 49.75 61.27 72.10 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 20.90 18.93 16.96 14.99 13.02 Less depreciation on Fixed Assets: 1.97 1.97 1.97 1.97 1.97 i) Net Block: 18.93 16.96 14.99 13.02 11.05 ii) Working Capital: 1.95 1.95 1.95 1.95 1.95 iii) Cash balance: 7.74 18.70 32.81 46.30 59.10 Total 28.62 37.61 49.75 61.27 72.10 Total Investment: 22.850 22.85 20.77 19.11 17.86 17.03 Return on Investment: 39.26 58.67 80.28 82.43 82.40 [100XNet profit/Total Investment] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-59]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 4.549 3.633 3.218 2.802 2.386 Other Operating Expenses 60% 7.440 7.961 8.518 9.114 9.752 Total 11.989 11.594 11.736 11.916 12.138 BEP [in % of target business] 47.939 42.293 38.742 40.478 42.509 [100xFC/(FC+Net profit)] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-60]A] Introduction: Mild steel (MS) wire is a finished product which is directly used for manufacture of various engineering items. Generally, materials with diameter upto 4 mm are considered to be wire rods and materials below this size are classified as wire. MS wire has number of applications such as for manufacturing fencing wire, wire nails, wire nettings, wire-rope etc. Wire drawing units are an essential component of the engineering industry and help in the development of associated engineering skills.B] Market Potential of the product: The end-users of MS wire in the State of Tripura are units manufacturing barbed wire, wire-nails, wire- netting and PSC poles. All the above items are being manufactured in Tripura but in limited quantities. Since the present manufacturing capacity is not adequate, these items are being substantially procured from outside sources. The total potential for the above wire-based steel items is estimated at 33,000 tonne per year as given below: Tone/yr. Barbed wire 18,000 Wire nails 3,500 Wire netting 9,000 PSC poles _2,500_ 33,000 ========== There are 8 or 9 wire units in the region, mainly in Guwahati, Tinsukia and Dibrugarh. The production capacity of these units together is estimated at 2500 to 3000 tonne per year. Keeping in view the existing capacity, the demand potential and taking the capacity of a typical tiny unit as 450 tonne per year, even if 40% of the demand gap is catered to by these tiny units, there is enough scope for new wire drawing units to be set up in the region, especially in Tripura.C] Raw Material: The major raw material required is mild steel wire rod of 6 mm dia or 8 mm dia. There is no unit manufacturing wire rods in the north-eastern region. MS rods are manufactured by the integrated steel plants and by some of the major mini steel plants. The leading producers are Tata Iron & Steel Co. Ltd. (TISCO), SAIL plants at Bhilai, Durgapur, Mukand Iron & Steel, and Bhoruka Iron & Steel. MS rods can be procured from stockyards of SAIL and TISCO in Guwahati. The annual requirement of MS rods is estimated at 318 tonne. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-61]D] Suggested Installed Capacity (Facilities): A typical unit would produce 315 tonne per annum of MS wire on the following basis: Size 10 gauge & 12 gauge Daily production capacity 1.5 tonne Working days 300 Days Annual production at 70% capacity utilization 12 gauge 157.5 tonne 10 gauge 157.5 tonneE] Manpower Requirement: The unit will employ 6 Nos. of skilled & un-skilled person. 1 Manager 1 No. 2 Skilled Worker 2 No. 3 Helper 3 Nos Total 6 Nos.F] Machineries & Equipments required: Aeration Unit Machines/Equipments Quantity (Nos) Amount Required (In Lakh Rs.) 1 Four blocks wire drawing unit 1 complete with accessories 2 Wire pointing machine 1 3 Butt welding machine 1 6.6 4 Die polishing machine 1 5 Flexible shaft grinder 1 6 Weighing machine 1 7 Hoisting equipment for loading and unloading of wires 1 8 Wire drawing dies, hand tools etc. 1 6.6G] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed, store and show room counter: 1000 Sq. ft. 2. Power 20 KW 3. Water 500 L/DayH] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Own/Lease) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 0.00 iv. Plant & Machineries: 6.60 v. Misc. Fixed Assets: 0.60 (Furnitures, Fixtures, electrification etc.) Total 7.20 vi. Preliminary & Pre-operative expenses: 0.40 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 7.60 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-62] 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [25 Days] 4.40 ii. Finished goods [15 Days] 2.80 iii. Receivables [7 Days] 2.50 Total amount of Working Capital required 9.70 Total Fund Required for the Project: [1 + 2] Rs 17.30 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 12.11 10.38 ii. Subsidy entitled: 4.33 6.06 iii. Own contribution @ 5% of Project Cost: 0.87 0.87 Total 17.30 17.30I] Annual Sales Forecasting: Items Qnty (tons) Rate (Rs/Ton) Amount (Lakh Rs) 1 Drawn wire of 12 gauge 157.5 22000 34.65 2 Drawn wire of 10 gauge 157.5 19500 30.71 3 By sale of waste LS 0.45 Total 65.81 Total Projected annual sale = Rs 65.81 LakhJ] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 65.81 75.21 84.62 84.62 84.62 2 Less Cost of Materials: 52.80 60.34 67.89 67.89 67.89 3 Gross Profit (1-2): 13.01 14.87 16.73 16.73 16.73 4 Less other operating expenses: i) Rent for Land: 0.60 0.64 0.69 0.74 0.79 ii) Salary for staff: 2.50 2.68 2.86 3.06 3.28 iii) Electricity and maintainance: 1.00 1.07 1.14 1.23 1.31 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 1.00 1.07 1.14 1.23 1.31 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 5.40 5.78 6.18 6.62 7.08 5 Profit before Depriciation, Interest and Taxes(3-4): 7.61 9.09 10.55 10.12 9.65 6 Less Depriciation on Fixed Assets: 0.72 0.72 0.72 0.72 0.72 7 profit before interest and taxes (5-6): 6.89 8.37 9.83 9.40 8.93 8 Less Interest payable on loan: 1.57 1.26 0.94 0.63 0.31 9 Profit before taxes (7-8): 5.32 7.11 8.88 8.77 8.6210 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 5.32 7.11 8.88 8.77 8.62 Percentage of Profit on Sale: 8.08 9.46 10.50 10.36 10.1812 Provision for repayment of loan: 2.42 2.42 2.42 2.42 2.4213 Retained Profit (11-12): 2.90 4.69 6.46 6.34 6.2014 Net Cash Accruals 3.62 5.41 7.18 7.06 6.92 [Depreciation added back with retained profit]15 Cumulated Net profit: 5.32 12.43 21.32 30.08 38.70 Pay-Back Period: 29 Months Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-63]K] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 12.11 9.69 7.27 4.84 2.42 Proposed Repayment during the year: 2.42 2.42 2.42 2.42 2.42 Refundable loan at the end of the year: 9.69 7.27 4.84 2.42 0.00 Total Debt-Service [Interest+Repayment]: 4.00 3.68 3.37 3.05 2.74 Fund Available for Debt-Service: 7.61 9.09 10.55 10.12 9.65 Debt-Service Coverage Ratio: 1.90 2.47 3.13 3.31 3.53L] Projected Cash Flow Statement: Amounts are in Lakh Rs. i) Own Investment: 0.865 ii) Loan from Bank: 12.110 iii) Increase in Subsidy: 4.325 iv) Profit Before Interest and taxes: 6.893 8.373 9.828 9.395 8.932 v) Depreciation added back: 0.720 0.720 0.720 0.720 0.720 Total 24.913 9.093 10.548 10.115 9.652 b) Uses of Fund: i) Increase in Fixed Assets: 7.200 ii) Preliminary Expenses: 0.400 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 9.700 v) Decrease in Loan: 2.422 2.422 2.422 2.422 2.422 vi) Interest payable: 1.574 1.259 0.945 0.630 0.315 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 21.296 3.681 3.367 3.052 2.737 Opening Balance: 3.616 9.028 16.210 23.273 Surplus/Deficit Generated: 3.616 5.412 7.181 7.063 6.915 Closing Balance: 3.616 9.028 16.210 23.273 30.188M] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.87 0.87 0.87 0.87 0.87 ii) Cumulated Net Profit: 5.32 12.43 21.32 30.08 38.70 Net Worth: 6.18 13.30 22.18 30.95 39.56 iii) Subsidy: 4.33 4.33 4.33 4.33 4.33 iv) Loan at Bank: 9.69 7.27 4.84 2.42 0.00 Total 20.20 24.89 31.35 37.69 43.89 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 7.60 6.88 6.16 5.44 4.72 Less depreciation on Fixed Assets: 0.72 0.72 0.72 0.72 0.72 i) Net Block: 6.88 6.16 5.44 4.72 4.00 ii) Working Capital: 9.70 9.70 9.70 9.70 9.70 iii) Cash balance: 3.62 9.03 16.21 23.27 30.19 Total 20.20 24.89 31.35 37.69 43.89 Total Investment: 17.300 17.30 15.73 14.47 13.52 12.89 Return on Investment: 30.74 45.24 61.41 64.82 66.84 [100XNet profit/Total Investment] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-64]N] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 2.894 1.979 1.665 1.350 1.035 Other Operating Expenses 60% 2.880 3.082 3.297 3.528 3.775 Total 5.774 5.061 4.962 4.878 4.810 BEP [in % of target business] 43.134 35.756 31.992 32.534 33.259 [100xFC/(FC+Net profit)]O] Machinery & Equipment Suppliers: 1. M/s. Hind Engineering Co., 2, Kundan Lane, Lilluah, Howrah 2. M/s. K.B. Machine Factory, 5, Hamam Singh Raigarhia Marg, Amritsar 3. M/s. Refrigeration and Machinery Corporation, Rajendra Prasad Road, Mumbai 4. M/s. Wire Machinery Manufacturing Corporation, 7-A, Venti-Hard Road, Calcutta Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-65]A] Introduction: General Engineering workshop plays a key role in rural and backward areas. With the stress more on development of rural and backward areas and on agricultural industries, the general engineering workshop will e very useful to undertake maintenance and servicing works and other general and repairing jobs. It may be noted that as per this scheme, specific products are envisaged. Only job works will be undertaken.B] Market Potential of the product: Most of the general engineering repairing and servicing workshops are established in urban centers and there are few units along highways. Due to industrialization, there has been tremendous growth of various machines/ tools etc. For servicing and repairing of these tools and equipment, a general engineering workshop will be very useful. A few such units can be set up in semi-urban areas in the State of Tripura.C] Process: General machinery work such as turning, drilling, strapping, boring etc.D] Raw Material: Raw materials and consumables such as oil, grease, cotton waste, tools etc. & Miscellaneous spare parts etc.E] Manpower Requirement: The unit will employ 7 Nos. of both skilled and unskilled persons. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-66]F] Machineries & Equipments required: Aeration Unit Machines/Equipments Amount Required (In Lakh Rs.) 1 Centre lathe height of centres 170 mm and distance 2 Between centers 1000mm with accessories 1.5 HP Motors. 3 Welding transformer 300 amps capacity 10 KVA 4 Pillar drilling machine 20 mm capacity with 1 HP Motor 5 Power hacksaw 200 mm capacity with 1 HP Motor 5.65 6 Double ended bench grinder 200 mm wheel size 0.5 HP Motor 7 Fitters workbench with vices 8 Tools, Instruments 9 Erection and electrification 10 Misc. equipments 5.65G] Requirement of Infrastructure: The major infrastructure requirements are – 1. Working Shed: 1500 Sq. ft. 2. Power 15 KW 3. Water 500 L/DayH] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Own/Lease) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 5.50 iv. Plant & Machineries: 5.65 v. Misc. Fixed Assets: 1.80 (Furnitures, Fixtures, electrification etc.) Total 12.95 vi. Preliminary & Pre-operative expenses: 1.00 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 13.95 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 1.10 ii. Finished goods [1 Month] 0.70 iii. Receivables [1 Month] 0.90 Total amount of Working Capital required 2.70 Total Fund Required for the Project: [1 + 2] Rs 16.65 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 11.66 9.99 ii. Subsidy entitled: 4.16 5.83 iii. Own contribution @ 5% of Project Cost: 0.83 0.83 Total 16.65 16.65 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-67]I] Annual Sales Forecasting: Based on prevailing market rates, the annual income in the first year of operation is estimated at Rs. 22.50 lakhs. By doing different works, servicing, repairing etc. Items Amount (Lakh Rs) 1 @ Rs.8500/- for 200 days 17.00 2 @ Rs. 5,500/- for 100 days 5.50 Total 22.50 Total Projected annual sale = Rs 22.50 LakhJ] Projected Profitability of the Project: Assumptions:Area of the Project Urban Annual Increase in Business/revenue 10 % Annual Increase in Operating Expenses: 7 % Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 1 Expected Sales: 22.50 24.75 27.23 29.95 32.94 2 Less Cost of Materials: 13.20 14.12 15.11 16.17 17.30 3 Gross Profit (1-2): 9.30 10.63 12.11 13.78 15.64 4 Less other operating expenses: i) Rent for Land: 0.36 0.39 0.41 0.44 0.47 ii) Salary for staff: 2.10 2.25 2.40 2.57 2.75 iii) Electricity and maintainance: 0.60 0.64 0.69 0.74 0.79 iv) Office expenses (Stationary, Telephone etc.) 0.10 0.11 0.11 0.12 0.13 v) Advertising and Selling expenses: 0.20 0.21 0.23 0.25 0.26 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 3.46 3.70 3.96 4.24 4.54 5 Profit before Depriciation, Interest and Taxes(3-4): 5.84 6.92 8.15 9.54 11.10 6 Less Depriciation on Fixed Assets: 1.30 1.30 1.30 1.30 1.30 7 profit before interest and taxes (5-6): 4.55 5.63 6.86 8.24 9.81 8 Less Interest payable on loan: 1.52 1.21 0.91 0.61 0.30 9 Profit before taxes (7-8): 3.03 4.42 5.95 7.64 9.5110 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 3.03 4.42 5.95 7.64 9.51 Percentage of Profit on Sale: 13.47 17.85 21.84 25.50 28.8612 Provision for repayment of loan: 2.33 2.33 2.33 2.33 2.3313 Retained Profit (11-12): 0.70 2.09 3.62 5.31 7.1814 Net Cash Accruals 1.99 3.38 4.91 6.60 8.47 [Depreciation added back with retained profit]15 Cumulated Net profit: 3.03 7.45 13.39 21.03 30.54 Pay-Back Period: 38 Months Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-68]K] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 11.66 9.32 6.99 4.66 2.33 Proposed Repayment during the year: 2.33 2.33 2.33 2.33 2.33 Refundable loan at the end of the year: 9.32 6.99 4.66 2.33 0.00 Total Debt-Service [Interest+Repayment]: 3.85 3.54 3.24 2.94 2.63 Fund Available for Debt-Service: 5.84 6.92 8.15 9.54 11.10 Debt-Service Coverage Ratio: 1.52 1.95 2.52 3.25 4.22L] Projected Cash Flow Statement: Amounts are in Lakh Rs. i) Own Investment: 0.833 ii) Loan from Bank: 11.655 iii) Increase in Subsidy: 4.163 iv) Profit Before Interest and taxes: 4.545 5.629 6.856 8.243 9.809 v) Depreciation added back: 1.295 1.295 1.295 1.295 1.295 Total 22.490 6.924 8.151 9.538 11.104 b) Uses of Fund: i) Increase in Fixed Assets: 12.950 ii) Preliminary Expenses: 1.000 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 2.700 v) Decrease in Loan: 2.331 2.331 2.331 2.331 2.331 vi) Interest payable: 1.515 1.212 0.909 0.606 0.303 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 20.496 3.543 3.240 2.937 2.634 Opening Balance: 1.994 5.375 10.285 16.887 Surplus/Deficit Generated: 1.994 3.381 4.911 6.601 8.470 Closing Balance: 1.994 5.375 10.285 16.887 25.357M] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.83 0.83 0.83 0.83 0.83 ii) Cumulated Net Profit: 3.03 7.45 13.39 21.03 30.54 Net Worth: 3.86 8.28 14.23 21.86 31.37 iii) Subsidy: 4.16 4.16 4.16 4.16 4.16 iv) Loan at Bank: 9.32 6.99 4.66 2.33 0.00 Total 17.35 19.43 23.05 28.36 35.53 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 13.95 12.66 11.36 10.07 8.77 Less depreciation on Fixed Assets: 1.30 1.30 1.30 1.30 1.30 i) Net Block: 12.66 11.36 10.07 8.77 7.48 ii) Working Capital: 2.70 2.70 2.70 2.70 2.70 iii) Cash balance: 1.99 5.37 10.29 16.89 25.36 Total 17.35 19.43 23.05 28.36 35.53 Total Investment: 16.650 16.65 15.13 13.92 13.01 12.41 Return on Investment: 18.20 29.18 42.71 58.69 76.62 [100XNet profit/Total Investment] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-69]N] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 3.170 2.507 2.204 1.901 1.598 Other Operating Expenses 60% 1.860 1.990 2.130 2.279 2.438 Total 5.030 4.497 4.334 4.180 4.036 BEP [in % of target business] 46.275 39.377 34.712 30.468 26.658 [100xFC/(FC+Net profit)]O] Machinery & Equipment Suppliers: 1. M/s. Jayems Engg. Co., 138, Thambu Chetty Street, Chennai – 600 001 2. M/s.1 Armstrong Smith Ltd., 45, Armenian Street, Chennai – 600 001 3. M/s. Shiv Machine Tools, 67, Armenian Street, Chennai – 600 001 4. M/s. Raga & Machine Tools, 91, Thambu Chetty Street, Chennai – 600 001 5. M/s. Vishnu Chakkara Machine Tools, 15, Rances Joseph Street, Chennai – 600 001. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-70]A] Introduction: Some of the major concrete products include concrete well rings. Concrete posts are used mainly for fencing purpose. A number of posts are required at regular intervals along barbed wire fencing. Some posts also find application as street light electric posts. Kitchen sinks are an integral part of most urban homes. In view of its convenience, sinks are fast entering rural homes also. Cement well rings, as the name implies, are required for open wells. Apart from forming the firm side walls they also facilitate movement into the well for cleaning purpose.B] Market Potential of the product: The demand for concrete posts would be largely linked with the magnitude of barbed wire fencing and rural electrification posts. Barbed fencing is carried out by the Home Department (Border Division), armed Forces, Forest Department and PWD. Generally, the spacing between two posts is about 3 to 3 ½ metre, each post being about 100 mm × 100mm in cross section with height varying from 1.5 to 3 metre. Thus in 1 Km of fencing about 300 posts would be required. Considering the vast borders of the north-eastern region and the massive programme being undertaken to fence the borders as well as regular requirements in forest areas it may be expected that the requirement of fencing would be about 300 to 400 Km per year. the corresponding demand for cement posts would be in the range of 90,000 to 1,20,000 per year. Besides, the demand for posts for rural electrification may be around 75,000 to 1,00,000 per year. Thus, the demand potential for cement posts in the north- eastern region could be of the order of 1.7 lakhs per year. there are a number of tiny units (about 20 to 30) supplying cement posts. Considering that each unit produces about 5000 posts per year on an average, the available market opportunity for new tiny units is placed at about 70,000 posts per year. Kitchen sinks are being made by 2 to 43 units. It is estimated that in order to meet the housing shortage, about 80,000 dwellings will have to be constructed per year in the urban areas and about 8 lakhs dwellings per year in rural areas. Considering that majority of urban homes would generally opt. for ceramic sinks, the vast rural market is available for concrete sinks. Conservatively assuming that about 6 lakhs rural dwellings and 60,000 urban dwellings would be constructed per year and assuming that 10% of these dwellings and the private construction and replacement demand require RCC sinks, there is demand potential for about 1,60,000 sinks per year. Considering a typical unit to produce 3000 sinks per year there is scope for about 50 such units. However, there may be enough scope initially for setting up 15 units having a product-mix as given in the next paragraph. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-71]C] Raw Material: The major raw materials required are cement, sand, stone dust, stone chips and iron strips. Cement is manufactured in the north-eastern region. Bulk of the cement required, however, still comes from outside the region. Cement may be available from local dealers or directly from nearby plants. Sand and stone chips may be procured locally and iron strips from the market. The annual requirement of Raw material at 70% capacity utilization is as follows: Cement 106 tonnes Sand 122 cu.m Stone chips 178 cu.m. Iron strip 10 tonnesD] Process: The main process of steps involved are: i) Fabrication of suitable moulds. ii) Preparation of concrete mix by mixing water in cement, sand and stone chips in suitable proportion. iii) Pouring of cement concrete into the moulds and stirring to avoid gaps or honey comb. Suitable reinforcement is to be provided while pouring cement concrete mixture for increasing the durability and strength of the product. iv) curing of the product for 4/5 days. During this period water is to be poured. After opening from the moulds water is to be sprinkled for about 6/7 days. Process Flow Chart:E] Target Production: Now-a-days, tube-wells have gained prominence over conventional wells. The demand for cement well rings would therefore be in specific areas where tube-wells are not possible /popular, and hence a small quantity of cement will rings is included in the product-mix. The main products would be concrete posts and kitchen sinks. About 300 numbers of well rings are also suggested. The production basis of a typical unit would be as follows: Sl. Particulars No. of Posts No. of Sinks No. of Rings No. 1. Daily production 20 10 2 2. Working Days/year 300 300 300 3. Annual Production 5000 2500 6 The products would be manufactured in the following typical sizes. Concrete Posts 100m ×100m×1,500 mm Kitchen Sinks 600mm long × 300 mm wide × 450 mm deep Well rings 2m dia, 1 m ht., 50 mm thickness. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-72]F] Manpower Requirement: The unit will employ 15 Nos. of skilled & un-skilled person. 1 Administrative Staff 3 Nos. 2 Factory Staffs 12 No. Total 15 Nos.G] Machineries & Equipments required: The process is essentially manual and no major production equipment is required. The following accessories would sufficient for the production: Machines/Equipments Amount Required (In Lakh Rs.) 1 Mould for posts (to be made from Steel plate) 2 Buckets, Shovels &Tools. 3.6 3 Mixer machine 3.6H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Land 2000 Sq. Ft. 2. Working Shed: 600 Sq. ft. 3. Power 1 KW 4. Water 2000 L/DayI] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent/Lease) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 0.00 iv. Plant & Machineries: 3.60 v. Misc. Fixed Assets: 1.00 (Furnitures, Fixtures, electrification etc.) Total 4.60 vi. Preliminary & Pre-operative expenses: 0.60 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 5.20 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 1.80 ii. Finished goods [1 Month] 1.80 iii. Receivables [1 Month] 2.40 Total amount of Working Capital required 6.00 Total Fund Required for the Project: [1 + 2] Rs 11.20 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 7.84 6.72 ii. Subsidy entitled: 2.80 3.92 iii. Own contribution @ 5% of Project Cost: 0.56 0.56 Total 11.20 11.20 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-73]J] Annual Sales Forecasting: @ 70% Capacity Items Qnty (Nos.) Rate (Rs/Ton) Amount (Lakh Rs) 1 Concrete Posts 5000 200 10.00 2 Kitchen sinks 2500 650 16.25 3 Well Rings 600 850 5.10 Total 31.35 Total Projected annual sale = Rs 31.35 LakhK] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 31.35 35.83 40.31 40.31 40.31 2 Less Cost of Materials: 21.60 24.69 27.77 27.77 27.77 3 Gross Profit (1-2): 9.75 11.14 12.54 12.54 12.54 4 Less other operating expenses: i) Rent for Land: 0.36 0.39 0.41 0.44 0.47 ii) Salary for staff: 4.00 4.28 4.58 4.90 5.24 iii) Electricity and maintainance: 0.25 0.27 0.29 0.31 0.33 iv) Office expenses (Stationary, Telephone etc.) 0.10 0.11 0.11 0.12 0.13 v) Advertising and Selling expenses: 0.20 0.21 0.23 0.25 0.26 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 5.01 5.36 5.74 6.14 6.57 5 Profit before Depriciation, Interest and Taxes(3-4): 4.74 5.78 6.80 6.40 5.97 6 Less Depriciation on Fixed Assets: 0.46 0.46 0.46 0.46 0.46 7 profit before interest and taxes (5-6): 4.28 5.32 6.34 5.94 5.51 8 Less Interest payable on loan: 1.02 0.82 0.61 0.41 0.20 9 Profit before taxes (7-8): 3.26 4.51 5.73 5.53 5.3010 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 3.26 4.51 5.73 5.53 5.30 Percentage of Profit on Sale: 10.40 12.58 14.21 13.72 13.1612 Provision for repayment of loan: 1.57 1.57 1.57 1.57 1.5713 Retained Profit (11-12): 1.69 2.94 4.16 3.96 3.7414 Net Cash Accruals 2.15 3.40 4.62 4.42 4.20 [Depreciation added back with retained profit]15 Cumulated Net profit: 3.26 7.77 13.50 19.03 24.33 Pay-Back Period: 30 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 7.84 6.27 4.70 3.14 1.57 Proposed Repayment during the year: 1.57 1.57 1.57 1.57 1.57 Refundable loan at the end of the year: 6.27 4.70 3.14 1.57 0.00 Total Debt-Service [Interest+Repayment]: 2.59 2.38 2.18 1.98 1.77 Fund Available for Debt-Service: 4.74 5.78 6.80 6.40 5.97 Debt-Service Coverage Ratio: 1.83 2.43 3.12 3.24 3.37 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-74]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. i) Own Investment: 0.560 ii) Loan from Bank: 7.840 iii) Increase in Subsidy: 2.800 iv) Profit Before Interest and taxes: 4.280 5.322 6.340 5.938 5.509 v) Depreciation added back: 0.460 0.460 0.460 0.460 0.460 Total 15.940 5.782 6.800 6.398 5.969 b) Uses of Fund: i) Increase in Fixed Assets: 4.600 ii) Preliminary Expenses: 0.600 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 6.000 v) Decrease in Loan: 1.568 1.568 1.568 1.568 1.568 vi) Interest payable: 1.019 0.815 0.612 0.408 0.204 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 13.787 2.383 2.180 1.976 1.772 Opening Balance: 2.153 5.552 10.172 14.594 Surplus/Deficit Generated: 2.153 3.399 4.620 4.423 4.197 Closing Balance: 2.153 5.552 10.172 14.594 18.791N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.56 0.56 0.56 0.56 0.56 ii) Cumulated Net Profit: 3.26 7.77 13.50 19.03 24.33 Net Worth: 3.82 8.33 14.06 19.59 24.89 iii) Subsidy: 2.80 2.80 2.80 2.80 2.80 iv) Loan at Bank: 6.27 4.70 3.14 1.57 0.00 Total 12.89 15.83 19.99 23.95 27.69 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 5.20 4.74 4.28 3.82 3.36 Less depreciation on Fixed Assets: 0.46 0.46 0.46 0.46 0.46 i) Net Block: 4.74 4.28 3.82 3.36 2.90 ii) Working Capital: 6.00 6.00 6.00 6.00 6.00 iii) Cash balance: 2.15 5.55 10.17 14.59 18.79 Total 12.89 15.83 19.99 23.95 27.69 Total Investment: 11.200 11.20 10.18 9.37 8.75 8.35 Return on Investment: 29.11 44.27 61.16 63.18 63.56 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 1.839 1.275 1.072 0.868 0.664 Other Operating Expenses 60% 2.790 2.985 3.194 3.418 3.657 Total 4.629 4.261 4.266 4.286 4.321 BEP [in % of target business] 49.409 42.425 38.550 40.113 41.994 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: Equipments are available in the local market. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-75]A] Introduction: Stone chips, termed as “Metal” in construction parlance, constitute one of the main construction materials along with bricks, sand, cement and steel. In the north-eastern region, where places are widely dispersed and there are communication bottlenecks, availability of construction materials is not adequate at all the places. In many areas, stone chips have to be brought over long distances, resulting in high construction costs. Dispersed stone crushing units are therefore a necessity in all the north- eastern states.B] Market Potential of the product: At present there are a few stone crushing unit around Agartala. Same units can make stone grit and chips, but currently chips are more in demand. The demand for stone chips is directly linked with the volume of construction activity. Stone chips are used in concreting, along with cement and sand and in road pavement work. It is estimated that for 1000 cu.m of metaling, 750 cu.m of stone chips will be required. Assuming that a tiny unit would cater to local demands within a 25 km radius, it may be expected to serve metal requirements for 100 km of road work per year and 2000 cu.m of concrete per year. On this basis the demand potential for a tiny unit is placed at 31,500 cu.m per year. Assuming that 50% of the demand would be met by the existing units there would be scope for 1 – 2 units in the local area of radius 25 km.C] Plant Capacity: The capacity of a stone crusher unit depends on the feed size of stone, the desired product size and the size of crusher used. Besides on a 16” x 9” Jaw crusher which is a popular size and 7” feed size of stone, the capacity of a typical unit would be 8,400 tonne per year as follows: Hourly production capacity : 3.50 tonne. Effective working hours : 8 hours. No.of shift per day : 1 shift No.of work-day per annum : 300 days. Annual production capacity : 8400 tonne Capacity utilization : 70% Annual production : 5880 tonne at 70% capacity utilization Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-76]D] Raw Material: Stone boulders are the only raw material required for the plant. Assuming an average yield of 90% of stone chips, the annual requirement of boulders is estimated at 6540 tonne at 70% capacity utilization.E] Process: Big stone boulders are first broken to smaller size manually, and then fed to the stone crusher. The crusher can accept stone size of 175mm. Stone crushing is two-stage process. In the first stage 175mm stone is crushed to about 50mm. Thereafter, the crusher is fitted with a conversion kit to enable granulation of 5 to 20mm. The crushed material is screened by rotary screen. Process Flow Chart:F] Manpower Requirement: The unit will employ 20 Nos. of skilled & un-skilled person. 1 Manager 1 No. 2 Works Supervisor 1 No. 3 Skilled Workers 7 Nos. 4 Un-skilled workers 10 Nos. 5 Chowkidar 1 No. Total 20 Nos.G] Machineries & Equipments required: The process is essentially manual and no major production equipment is required. The following accessories would sufficient for the production: Machines/Equipments Amount Required (In Lakh Rs.) 1 I No. Jaw crusher and granulator of size 16” to 10” having 15 HP motor along with rotary screen. 2 Conversion kit for converting crushed stone granules (size 16”x6”). 3 Grizzly for screening of big materials. 4 Set of hoppers for manual breaking. 5 Rotary screen complete with all fittings. 6 2 Nos. trollies for carrying crushed material. 14.5 7 2 Nos. bunkers for storage. 8 Other essential accessories – 1 set. 9 Air compressor 10 Rock drilling machine and jack hammers. 11 Drill rods, houses etc. 12 Hand tools like shovel, spade, chisels, hammers etc. 14.5 Stone crusher are available in two major types namely (a) stationary (b) portable or mobile. Stationary crushers are usually located at quarry heads. Portable crushers are mainly used at construction sites. This profile is based on a stationary crusher. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-77]H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Land 1.5 acre. 2. Working Shed: 3 x 2m (wooden/steel poles with GCI Sheet roof) 3. Power 1.5 KW 4. Water 2000 L/DayI] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent/Lease) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 0.00 iv. Plant & Machineries: 14.50 v. Misc. Fixed Assets: 1.20 (Furnitures, Fixtures, electrification etc.) Total 15.70 vi. Preliminary & Pre-operative expenses: 1.00 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 16.70 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [10 Days] 0.50 ii. Finished goods [1 Month] 2.20 iii. Receivables [1 Month] 4.00 Total amount of Working Capital required 6.70 Total Fund Required for the Project: [1 + 2] Rs 23.40 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 16.38 14.04 ii. Subsidy entitled: 5.85 8.19 iii. Own contribution @ 5% of Project Cost: 1.17 1.17 Total 23.40 23.40J] Annual Sales Forecasting: @ 70% Capacity In the output 90% will be chips and balance 10% will be sand. Accordingly, for a throughout of 6540 tonnes of boulders, production of chips will be 5886 tonnes and sand will be 654 tonnes. Items Qnty (Nos.) Rate (Rs/Ton) Amount (Lakh Rs) 1 stone chips 5886 720 42.38 2 SAND 654 240 1.57 Total 43.95 Total Projected annual sale = Rs 43.95 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-78]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 43.95 50.23 56.51 56.51 56.51 2 Less Cost of Materials: 15.00 17.14 19.29 19.29 19.29 3 Gross Profit (1-2): 28.95 33.08 37.22 37.22 37.22 4 Less other operating expenses: i) Rent for Land: 1.00 1.07 1.14 1.23 1.31 ii) Salary for staff: 9.50 10.17 10.88 11.64 12.45 iii) Electricity and maintainance: 2.00 2.14 2.29 2.45 2.62 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 4.50 4.82 5.15 5.51 5.90 vi) Insurance and other misc. expenses: 0.50 0.54 0.57 0.61 0.66 Total of Sl. 4. 17.70 18.94 20.26 21.68 23.20 5 Profit before Depriciation, Interest and Taxes(3-4): 11.25 14.15 16.96 15.54 14.02 6 Less Depriciation on Fixed Assets: 1.57 1.57 1.57 1.57 1.57 7 profit before interest and taxes (5-6): 9.68 12.58 15.39 13.97 12.45 8 Less Interest payable on loan: 2.13 1.70 1.28 0.85 0.43 9 Profit before taxes (7-8): 7.55 10.87 14.11 13.11 12.0210 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 7.55 10.87 14.11 13.11 12.02 Percentage of Profit on Sale: 17.18 21.65 24.97 23.21 21.2812 Provision for repayment of loan: 3.28 3.28 3.28 3.28 3.2813 Retained Profit (11-12): 4.27 7.60 10.83 9.84 8.7514 Net Cash Accruals 5.84 9.17 12.40 11.41 10.32 [Depreciation added back with retained profit]15 Cumulated Net profit: 7.55 18.42 32.53 45.64 57.67 Pay-Back Period: 26 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 16.38 13.10 9.83 6.55 3.28 Proposed Repayment during the year: 3.28 3.28 3.28 3.28 3.28 Refundable loan at the end of the year: 13.10 9.83 6.55 3.28 0.00 Total Debt-Service [Interest+Repayment]: 5.41 4.98 4.55 4.13 3.70 Fund Available for Debt-Service: 11.25 14.15 16.96 15.54 14.02 Debt-Service Coverage Ratio: 2.08 2.84 3.72 3.76 3.79 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-79]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. i) Own Investment: 1.170 ii) Loan from Bank: 16.380 iii) Increase in Subsidy: 5.850 iv) Profit Before Interest and taxes: 9.679 12.575 15.385 13.967 12.449 v) Depreciation added back: 1.570 1.570 1.570 1.570 1.570 Total 34.649 14.145 16.955 15.537 14.019 b) Uses of Fund: i) Increase in Fixed Assets: 15.700 ii) Preliminary Expenses: 1.000 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 6.700 v) Decrease in Loan: 3.276 3.276 3.276 3.276 3.276 vi) Interest payable: 2.129 1.704 1.278 0.852 0.426 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 28.805 4.980 4.554 4.128 3.702 Opening Balance: 5.843 15.009 27.411 38.820 Surplus/Deficit Generated: 5.843 9.166 12.402 11.409 10.317 Closing Balance: 5.843 15.009 27.411 38.820 49.137N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.17 1.17 1.17 1.17 1.17 ii) Cumulated Net Profit: 7.55 18.42 32.53 45.64 57.67 Net Worth: 8.72 19.59 33.70 46.81 58.84 iii) Subsidy: 5.85 5.85 5.85 5.85 5.85 iv) Loan at Bank: 13.10 9.83 6.55 3.28 0.00 Total 27.67 35.27 46.10 55.94 64.69 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 16.70 15.13 13.56 11.99 10.42 Less depreciation on Fixed Assets: 1.57 1.57 1.57 1.57 1.57 i) Net Block: 15.13 13.56 11.99 10.42 8.85 ii) Working Capital: 6.70 6.70 6.70 6.70 6.70 iii) Cash balance: 5.84 15.01 27.41 38.82 49.14 Total 27.67 35.27 46.10 55.94 64.69 Total Investment: 23.400 23.40 21.27 19.57 18.29 17.44 Return on Investment: 32.26 51.11 72.10 71.71 68.95 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 4.699 3.274 2.848 2.422 1.996 Other Operating Expenses 60% 10.020 10.721 11.472 12.275 13.134 Total 14.719 13.995 14.320 14.697 15.130 BEP [in % of target business] 56.682 49.733 45.786 48.611 51.906 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: 1. M/s Hindustan Agrico, 2. M/s Thapar Auto Trading Works, Pratapnagar, B- 32, Phase-II, I.T.I., Mayapuri, Udaipur – 313 001 New Delhi – 110 064 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-80]A] Introduction: In view of the increased building construction activities and the various ambitious projects envisaged by the Central/State Government in the 10th Plan, the demand for bricks will increase in the coming years. A significant change is taking place in the building habits of the region i.e. more emphasis is given on R.C.C. construction rather than traditional Assam Type houses. With more major construction projects coming up in the NE Region including Tripura, the demand for works is registering a substantial growth. Therefore, there is good scope for brick plants in this part of the country. The brick season in this region starts in November and countries till April. The operations like digging of earth, soaking the clay, moulding the bricks etc. are done manually in the traditional brick plants. The dying of the green bricks is done in the open. Because of this, this industry is seasonal, operating only in dry season. However, in view of the increasing construction activities in Tripura the demand for bricks will increase manifold in the near future. Therefore, a couple of brick plants may benefit the users of bricks by way of supplying bricks at competitive rates.B] Plant Capacity: A unit manufacturing 25,75,000 Nos. bricks per annum (seasonal) has been found to be an economically viable proposition.C] Raw Material: The only basic raw material required for the brick plant is alluvial clay with suitable plastic properties. The requirement of clay for the plant has been calculated on the basis of land requirement for 20 years. Around 2.83 cubic meters of clay is required per 1000 number of bricks. The depth of clay available for the plant will be between 2.5 to 3.00 meters. The following will be the cost of raw materials. Cost of Raw Materials: Particulars of raw materials Annual requirement Cost per unit of bricks at 70% Capacity utilization Cost of raw materials includes 18,00,000 Rs. 1.00 labour, cost of excavation, handling and transportation to the storage heaps. The requirement of clay for the proposed capacity of the plant (18,00,000 bricks on seasonal basis) is 7725 m3 per season. The minimum requirement will be 10 to 15 bighas of land. This requirement will be met from the land procured for the project. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-81]D] Process: The various stages in the process of manufacture of bricks are as follows: 1. Clay digging (manual) from clay pits. 2. Transportation to storage heaps manually. 3. Clay feeding to the box feeder. 4. Mechanized brick cutting. 5. Off bearing green bricks in finger cars. 6. Manual setting in drying sheds. 7. Wheeling the barrows the dried bricks to the kiln. 8. Firing the kiln. 9. Sorting and storing the finished red bricks/brick bats. Process Flow Chart:E] Manpower Requirement: Category No. Reqd. Monthly Salary Total monthly per person salary (Rs.) 1. Manager 1 5000 5,000 2. Kiln Operator 1 3000 3,000 3. Clerk cum Accountant 1 3500 3,500 4. Peon/Watchman 2 2500 5,000 5. Skilled workers 6 2500 15,000 Total : 11 31,500 Total salary per annum (Rs 31,500 x 6 months) : Rs 1,89,000/- Unskilled Workers 60 Nos. @ Rs.600/- per month. Therefore, the total wage bill of 60 workers for 6 month will be (30000x6). : Rs 216,000/- ___________ The total manpower estimate comes to Total : Rs 4,05,000/-F] Machineries & Equipments required: Machines/Equipments Amount Required (In Lakh Rs.) 1 Hand operated Cutting table for Cutting bricks. (1 No.) 2 Wheel barrows (5 Nos) 3 Pallets 3 mm thick M.S. plate measuring 64x25mm each and capable of handling 6 bricks at a time. (15 Nos.) 12 4 Kiln with all accessories. (1 No.) 5 Box type wheel burrows with a capacity to carry 40 to 50 (6 Nos.) bricks each. 12 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-82]G] Requirement of Infrastructure: The major infrastructure requirements are – 1. Land 10- 15 Bigha 3. Power 10 KWH] Utilities: The unit would require power for general purpose only. The consumption of coal in the Kiln will be around 500 Kgs. per 1000 bricks. This requirement will be met from Assam/Meghalaya coal. The annual requirement of coal at 100% capacity utilization will be around 900 MT. The cost of which is @ Rs.2400/- per M.T. Therefore, the cost of utility including general lighting comes to Rs. 21.6 lakh approximately in the first year of operation.I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Own/Lease) 0.00 ii. Site Development: 1.20 iii. Building/Civil Works: 2.40 iv. Plant & Machineries: 12.00 v. Misc. Fixed Assets: 0.60 (Furnitures, Fixtures, electrification etc.) Total 16.20 vi. Preliminary & Pre-operative expenses: 0.85 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 17.05 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 1.50 ii. Utilities [1 Month] 1.80 iii. Wages & Salaries [1 Month] 0.35 iv. Finished Goods [10 Days] 2.00 v. Receivables [10 Days] 2.00 Total amount of Working Capital required 7.65 Total Fund Required for the Project: [1 + 2] Rs 24.70 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 17.29 14.82 ii. Subsidy entitled: 6.18 8.65 iii. Own contribution @ 5% of Project Cost: 1.24 1.24 Total 24.70 24.70J] Annual Sales Forecasting: @ 70% Capacity Sales realization at 70% capacity utilization has been calculated on the following basis; Items Qnty (Nos.) Rate (Rs/Ton) Amount (Lakh Rs) 1 Bricks 1400000 4 56.00 2 Brickets 300000 2.5 7.50 3 Broken 100000 1 1.00 Total 64.50 Total Projected annual sale = Rs 64.50 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-83]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 64.50 73.71 82.93 82.93 82.93 2 Less Cost of Materials: 18.00 20.57 23.14 23.14 23.14 3 Gross Profit (1-2): 46.50 53.14 59.79 59.79 59.79 4 Less other operating expenses: i) Rent for Land: 0.50 0.54 0.57 0.61 0.66 ii) Salary for staff: 4.05 4.33 4.64 4.96 5.31 iii) Electricity and maintainance: 1.00 1.07 1.14 1.23 1.31 iv) Office expenses (Stationary, Telephone etc.) 0.50 0.54 0.57 0.61 0.66 v) Advertising and Selling expenses: 4.00 4.28 4.58 4.90 5.24 vi) Insurance and other misc. expenses: 1.00 1.07 1.14 1.23 1.31 Total of Sl. 4. 11.05 11.82 12.65 13.54 14.48 5 Profit before Depriciation, Interest and Taxes(3-4): 35.45 41.32 47.13 46.25 45.30 6 Less Depriciation on Fixed Assets: 1.62 1.62 1.62 1.62 1.62 7 profit before interest and taxes (5-6): 33.83 39.70 45.51 44.63 43.68 8 Less Interest payable on loan: 2.25 1.80 1.35 0.90 0.45 9 Profit before taxes (7-8): 31.58 37.90 44.17 43.73 43.2310 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 31.58 37.90 44.17 43.73 43.23 Percentage of Profit on Sale: 48.96 51.42 53.26 52.73 52.1312 Provision for repayment of loan: 3.46 3.46 3.46 3.46 3.4613 Retained Profit (11-12): 28.12 34.44 40.71 40.27 39.7714 Net Cash Accruals 29.74 36.06 42.33 41.89 41.39 [Depreciation added back with retained profit]15 Cumulated Net profit: 31.58 69.48 113.65 157.38 200.61 Pay-Back Period: 9 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 17.29 13.83 10.37 6.92 3.46 Proposed Repayment during the year: 3.46 3.46 3.46 3.46 3.46 Refundable loan at the end of the year: 13.83 10.37 6.92 3.46 0.00 Total Debt-Service [Interest+Repayment]: 5.71 5.26 4.81 4.36 3.91 Fund Available for Debt-Service: 35.45 41.32 47.13 46.25 45.30 Debt-Service Coverage Ratio: 6.21 7.86 9.81 10.61 11.59 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-84]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. i) Own Investment: 1.235 ii) Loan from Bank: 17.290 iii) Increase in Subsidy: 6.175 iv) Profit Before Interest and taxes: 33.830 39.699 45.515 44.629 43.681 v) Depreciation added back: 1.620 1.620 1.620 1.620 1.620 Total 60.150 41.319 47.135 46.249 45.301 b) Uses of Fund: i) Increase in Fixed Assets: 16.200 ii) Preliminary Expenses: 0.850 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 7.650 v) Decrease in Loan: 3.458 3.458 3.458 3.458 3.458 vi) Interest payable: 2.248 1.798 1.349 0.899 0.450 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 30.406 5.256 4.807 4.357 3.908 Opening Balance: 29.744 65.807 108.135 150.027 Surplus/Deficit Generated: 29.744 36.063 42.328 41.892 41.394 Closing Balance: 29.744 65.807 108.135 150.027 191.421N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.24 1.24 1.24 1.24 1.24 ii) Cumulated Net Profit: 31.58 69.48 113.65 157.38 200.61 Net Worth: 32.82 70.72 114.88 158.61 201.85 iii) Subsidy: 6.18 6.18 6.18 6.18 6.18 iv) Loan at Bank: 13.83 10.37 6.92 3.46 0.00 Total 52.82 87.27 127.98 168.25 208.02 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 17.05 15.43 13.81 12.19 10.57 Less depreciation on Fixed Assets: 1.62 1.62 1.62 1.62 1.62 i) Net Block: 15.43 13.81 12.19 10.57 8.95 ii) Working Capital: 7.65 7.65 7.65 7.65 7.65 iii) Cash balance: 29.74 65.81 108.14 150.03 191.42 Total 52.82 87.27 127.98 168.25 208.02 Total Investment: 24.700 24.70 22.45 20.65 19.31 18.41 Return on Investment: 127.86 168.81 213.84 226.52 234.87 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 4.368 3.418 2.969 2.519 2.070 Other Operating Expenses 60% 6.330 6.773 7.247 7.755 8.297 Total 10.698 10.191 10.216 10.274 10.367 BEP [in % of target business] 23.181 19.785 17.813 18.176 18.623 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: M/s. B.B.Engineering Works, 166/22, B.T.Road, Kolkata-700 008. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-85]A] Introduction: Bricks are a significant basic material of construction required in all spheres of constructional activities and constitute about 13 percent of the total cost of building material required for construction. By and large three types of materials are used in walling viz. Conventional Burnt Clay Bricks, different types of board and Concrete Blocks/Bricks. It has been established that the use of clay bricks provide a superior and comfortable physical living environment than the use of other materials as far as residential construction is concerned. Despite all initiatives to introduce alternative walling materials like compressed earth block, concrete/stone Crete block and fly-ash brick, it is envisaged that burnt clay bricks would still occupy the dominant position. Typical characteristics of burnt clay brick are as follows: Dimensions – 250 (L) 125 (W) 75mm (H) Colour – Red Weight – 3.6 Kg. Bulk density – 1700 – 1800 kg/m3 Cold crushing strength – 70 – 90 kg/m3 Water Absorption – 20%B] Market Potential of the product: The demand for bricks have been increasing year by year with the increased building construction activities in Private/ Govt. Sectors as well as various projects/development activities envisaged by the Central/State Governments. A significant change is taking place in the building habits of the region by way of tendency to shift from the traditional Assam Type houses to RCC type houses using bricks. That is why Bricks industry in the region has been registering a steady and significant growth over the years. Current consumption of bricks in NER (year 2005 – 06) is approximately 3000 Million. Assam is the major consumer of bricks in the NER comprising nearly 70% of the total consumption. Assam is followed by Tripura with consumption of approximately 9%. Existing brick plants are concentrated in the State of Assam, Tripura & Mizoram. Brick consumption at the national level has shown an Annual Cumulative Growth Rate (ACGR) of 7% for last few years. However, NER lags behind the national growth rate and it is expected to increase at an ACGR of 6% in the N.E. Region. At this growth rate, the demand for bricks in NER including Tripura, there is likely to increase 4000 million bricks in near future. In order to meet this demand an additional requirement of 200 brick plants (capacity 20 lakh clay bricks/year each) in the region as also in Tripura.C] Plant Capacity: Keeping in view the gap between demand and supply, technological factors and economic viability etc., the suggested production capacity of a typical clay bricks manufacturing unit is 29 lakhs clay bricks per annum. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-86]D] Raw Material: The basic raw material required is Alluvial Clay with suitable plastic properties. Around 2.83 cubic metres of clay is required per 1000 number of bricks. The requirement of clay for the unit has been calculated on the basis of land requirement for 20 years. The depth of clay available for the plant will be between 2.5 to 3 metres. The requirement of inputs per 1000 clay bricks is as follows: Inputs Quantity Clay 4 Tonnes Silt 0 – 0.04 Tonnes Coal 0.2 Tonnes Water 4 KL.E] Process: The process to be employed is based on the process developed and designed by the Central Building Research Institute, Roorkee. The main process steps are as follows: • Clay digging (manual) from clay pits and its storage. • Moulding of clay and manual cutting. • Manual setting and drying in drying shed. • Processing to the final product by firing in the kiln firing. • Storing. Process Flow Chart:F] Manpower Requirement: The unit proposes to employ 50 nos. of both skilled & unskilled personsG] Machineries & Equipments required: Machines/Equipments Amount Required (In Lakh Rs.) 1 Cutting table (3 bricks at a time) 1 No. 2 Wheel barrow’s (transport 14 pallets) 8 Nos. 3 Pallets (3mm thick & 64 x 25 mm size) 20 Nos. 4 I.D. Fan with motor & starter 1 No. 14.5 5 Box type wheel barrows (Cap. 40/50 dry bricks) 10 Nos. 6 Kiln accessories (dampers, fed pot etc.) LS 14.5 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-87]H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Land 14 Bighas 2. Working Shed: 1200 Sq. Ft. 3. Power 50 KW 4. Coal 200 Kg. per 1000 clay bricks. Note: The brick industry is highly seasonal in the NE region due to heavy rains in the region and production takes place for around 6 – 7 months in a year. Normally the labourers with some past experience travel to region from West Bengal and Bihar during the said season of brick manufacturing.I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent/Lease) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 5.10 iv. Plant & Machineries: 14.00 v. Misc. Fixed Assets: 2.00 (Furnitures, Fixtures, electrification etc.) Total 21.10 vi. Preliminary & Pre-operative expenses: 0.70 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 21.80 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 1.50 ii. Finished goods [7 Days] 0.50 iii. Receivables [7 Days] 1.20 Total amount of Working Capital required 3.20 Total Fund Required for the Project: [1 + 2] Rs 25.00 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 17.50 15.00 ii. Subsidy entitled: 6.25 8.75 iii. Own contribution @ 5% of Project Cost: 1.25 1.25 Total 25.00 25.00J] Annual Sales Forecasting: @ 70% Capacity The estimated average ex-factory sales realization from the sale of clay bricks (Grade-1 & II) is Rs 4000/- per 1000 clay bricks. Based on this the annual sales realization is estimated to be : Rs. 81 /- Lakh per annum. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-88]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 81.20 92.80 104.40 104.40 104.40 2 Less Cost of Materials: 18.00 20.57 23.14 23.14 23.14 3 Gross Profit (1-2): 63.20 72.23 81.26 81.26 81.26 4 Less other operating expenses: i) Rent for Land: 1.00 1.07 1.14 1.23 1.31 ii) Salary for staff: 12.00 12.84 13.74 14.70 15.73 iii) Electricity and maintainance: 2.00 2.14 2.29 2.45 2.62 iv) Office expenses (Stationary, Telephone etc.) 0.60 0.64 0.69 0.74 0.79 v) Advertising and Selling expenses: 6.00 6.42 6.87 7.35 7.86 vi) Insurance and other misc. expenses: 0.50 0.54 0.57 0.61 0.66 Total of Sl. 4. 22.10 23.65 25.30 27.07 28.97 5 Profit before Depriciation, Interest and Taxes(3-4): 41.10 48.58 55.95 54.18 52.29 6 Less Depriciation on Fixed Assets: 2.11 2.11 2.11 2.11 2.11 7 profit before interest and taxes (5-6): 38.99 46.47 53.84 52.07 50.18 8 Less Interest payable on loan: 2.28 1.82 1.37 0.91 0.46 9 Profit before taxes (7-8): 36.72 44.65 52.48 51.16 49.7210 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 36.72 44.65 52.48 51.16 49.72 Percentage of Profit on Sale: 45.22 48.12 50.27 49.01 47.6312 Provision for repayment of loan: 3.50 3.50 3.50 3.50 3.5013 Retained Profit (11-12): 33.22 41.15 48.98 47.66 46.2214 Net Cash Accruals 35.33 43.26 51.09 49.77 48.33 [Depreciation added back with retained profit]15 Cumulated Net profit: 36.72 81.37 133.85 185.01 234.73 Pay-Back Period: 8 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 17.50 14.00 10.50 7.00 3.50 Proposed Repayment during the year: 3.50 3.50 3.50 3.50 3.50 Refundable loan at the end of the year: 14.00 10.50 7.00 3.50 0.00 Total Debt-Service [Interest+Repayment]: 5.78 5.32 4.87 4.41 3.96 Fund Available for Debt-Service: 41.10 48.58 55.95 54.18 52.29 Debt-Service Coverage Ratio: 7.12 9.13 11.50 12.29 13.22 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-89]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. i) Own Investment: 1.250 ii) Loan from Bank: 17.500 iii) Increase in Subsidy: 6.250 iv) Profit Before Interest and taxes: 38.990 46.472 53.845 52.074 50.179 v) Depreciation added back: 2.110 2.110 2.110 2.110 2.110 Total 66.100 48.582 55.955 54.184 52.289 b) Uses of Fund: i) Increase in Fixed Assets: 21.100 ii) Preliminary Expenses: 0.700 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 3.200 v) Decrease in Loan: 3.500 3.500 3.500 3.500 3.500 vi) Interest payable: 2.275 1.820 1.365 0.910 0.455 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 30.775 5.320 4.865 4.410 3.955 Opening Balance: 35.325 78.587 129.676 179.450 Surplus/Deficit Generated: 35.325 43.262 51.090 49.774 48.334 Closing Balance: 35.325 78.587 129.676 179.450 227.784N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.25 1.25 1.25 1.25 1.25 ii) Cumulated Net Profit: 36.72 81.37 133.85 185.01 234.73 Net Worth: 37.97 82.62 135.10 186.26 235.98 iii) Subsidy: 6.25 6.25 6.25 6.25 6.25 iv) Loan at Bank: 14.00 10.50 7.00 3.50 0.00 Total 58.22 99.37 148.35 196.01 242.23 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 21.80 19.69 17.58 15.47 13.36 Less depreciation on Fixed Assets: 2.11 2.11 2.11 2.11 2.11 i) Net Block: 19.69 17.58 15.47 13.36 11.25 ii) Working Capital: 3.20 3.20 3.20 3.20 3.20 iii) Cash balance: 35.33 78.59 129.68 179.45 227.78 Total 58.22 99.37 148.35 196.01 242.23 Total Investment: 25.000 25.00 22.73 20.91 19.54 18.63 Return on Investment: 146.86 196.49 251.04 261.84 266.90 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 5.385 3.930 3.475 3.020 2.565 Other Operating Expenses 60% 12.660 13.546 14.494 15.509 16.595 Total 18.045 17.476 17.969 18.529 19.160 BEP [in % of target business] 30.510 26.456 24.308 25.483 26.816 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: Hi-Tech Machines & Toold, M/s Beta Instruments Co. (P) Ltd., M/s The Aluminium Industries, 5, Khetra Das Lane, S. Block, (Machinery Divisions), Kolkata – 700 012 Plot No. W – 21, Lingampalli, Bhosari, Ramchandrapuram, Poona – 26 Hydrabad - 32 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-90]A] Introduction: With the energy crisis leading to increased cost of oil and natural gas, the focus has again shifted to coal due to the growing curbs on deforestation and use of wood from environmental consideration. In view of conserving oil and gas for more productive purposes, the coal which has considerable reserve in North Eastern Region can be more usefully exploited for domestic application by way of Fuel/Coal briquettes.B] The Product: Coal briquettes are made of slack low cost domestic fuels for firing smokeless burning with minimal atmospheric pollution. These briquettes can be made with easy technology and can be transported over long distances.C] Market Potential of the product: Main consumers of coal briquettes are household, small restaurants and hostels. In the North Eastern Region, only 30-40% population in both urban and rural areas uses LPG as energy source and the balance 60-70% population uses other source of energy like Kerosene, firewood, charcoal and coal. Based on a consumption of 1 Kg per day per household, the demand of coal by the people of the region is estimated at almost 5,00,000 tonnes per year as on today. Assuming that initially 10% of the consumers would shift to coal briquettes with the rising population, the demand for this product can be estimated at 6,00,000 tonne per year. Thus, there is scope for about 5 to 8 coal briquette unit in the state of TripuraD] Raw Material/Consumable: The major raw material is low grade coal and coal fires. Assisting raw materials are binders such as benetonite, molasses, plastic clay. Lime and sodium silicate. The annual requirement of raw materials as under- Tone per year Slack 5900 Binders 160 In the North Eastern Region, coal is mainly available in Makum Coal in Assam, Jaintia Hills and Garo Hills in Meghalaya. Availability of coal for briquettes units on priority basis can be obtained from coal India Ltd. and the North Eastern Coal Field, a subsidiary of CIL. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-91]E] Production Process: The production process involves the following steps - a) Crushing/grinding of coal to below 2 mm. b) Preparation of binders in semi-liquid form. c) Mixing of coal with binders. d) Briquette making. e) Drying. f) Carbonization of Briquettes in the furnace to remove volatile matter. g) Cooling of Briquettes by spraying water. h) Packing. Process Flow Chart-F] Production (per annum): A typical coal briquettes unit of 780 tonne capacity per annuam is suggested on the following basis. Daily production : 1.8 Tonne Working hours per day : 8 hrs. (1 shift) No. of working days/year : 300 Annual production : 540 tonne at 70% capacity utilizationG] Requirement of Infrastructure: The major infrastructure requirements are – 1. Open area: 6000 Sq. Ft. 2. Shed area etc. 0500 Sq Ft. 2. Power 30 KW 3. Water 1800 Ltrs / DayH] Machineries & Equipments required: Amount Required (In Lakh Rs.) A. Hammer crusher (15 HP motor) B. Mixer (7.5 HP motor) C. Briquette machine (15 HP) D. Carbonizing furnace with 3 chambers, chimney and other accessories. 12.35 E. Platform weighing scale. F. Misc. tools, dies etc. Total 12.35 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page -92]I] Manpower Required: The total manpower required for the unit s 11 Nos. consisting of the following: 1 Manager 1 No. 2 Skilled Worker 3 No. 3 Un-Skilled Worker 6 No. 4 Peon/Chowkidar 1 No. Total 11J] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (On Lease/own) 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: 0.00 iv. Plant & Machineries: 12.35 v. Misc. Fixed Assets: 1.20 (Furnitures, Fixtures, electrification etc.) Total 13.55 vi. Preliminary & Pre-operative expenses: 2.50 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 16.05 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 5.00 ii. Utilities [1 Month] 0.20 iii. Wages & Salaries [1 Month] 0.30 iv. Receivables [7 Days] 2.00 Total amount of Working Capital required 7.50 Total Fund Required for the Project: [1 + 2] Rs 23.55 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 16.49 14.13 ii. Subsidy entitled: 5.89 8.24 iii. Own contribution @ 5% of Project Cost: 1.18 1.18 Total 23.55 23.55K] Annual Sales Forecasting: @ 70% Capacity Utilisation. Items Qnty (Tons.) Rate (Rs) Amount (Rs) Coal briquettes 540 16000 8640000 8640000 Total Projected annual sale = Rs 86.4 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-93]L] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 86.40 98.74 111.09 111.09 111.09 2 Less Cost of Materials: 60.00 68.57 77.14 77.14 77.14 3 Gross Profit (1-2): 26.40 30.17 33.94 33.94 33.94 4 Less other operating expenses: i) Rent for Land: 0.50 0.54 0.57 0.61 0.66 ii) Salary for staff: 3.60 3.85 4.12 4.41 4.72 iii) Electricity and maintainance: 2.00 2.14 2.29 2.45 2.62 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 2.00 2.14 2.29 2.45 2.62 vi) Insurance and other misc. expenses: 0.20 0.21 0.23 0.25 0.26 Total of Sl. 4. 8.50 9.10 9.73 10.41 11.14 5 Profit before Depriciation, Interest and Taxes(3-4): 17.90 21.08 24.21 23.53 22.80 6 Less Depriciation on Fixed Assets: 1.36 1.36 1.36 1.36 1.36 7 profit before interest and taxes (5-6): 16.55 19.72 22.86 22.17 21.45 8 Less Interest payable on loan: 2.14 1.71 1.29 0.86 0.43 9 Profit before taxes (7-8): 14.40 18.01 21.57 21.32 21.0210 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 14.40 18.01 21.57 21.32 21.02 Percentage of Profit on Sale: 16.67 18.24 19.42 19.19 18.9212 Provision for repayment of loan: 3.30 3.30 3.30 3.30 3.3013 Retained Profit (11-12): 11.10 14.71 18.27 18.02 17.7214 Net Cash Accruals 12.46 16.06 19.63 19.38 19.08 [Depreciation added back with retained profit]15 Cumulated Net profit: 14.40 32.41 53.98 75.30 96.31 Pay-Back Period: 17 MonthsM] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 16.49 13.19 9.89 6.59 3.30 Proposed Repayment during the year: 3.30 3.30 3.30 3.30 3.30 Refundable loan at the end of the year: 13.19 9.89 6.59 3.30 0.00 Total Debt-Service [Interest+Repayment]: 5.44 5.01 4.58 4.15 3.73 Fund Available for Debt-Service: 17.90 21.08 24.21 23.53 22.80 Debt-Service Coverage Ratio: 3.29 4.21 5.28 5.66 6.12 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-94]N] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 1.178 ii) Loan from Bank: 16.485 iii) Increase in Subsidy: 5.888 iv) Profit Before Interest and taxes: 16.545 19.721 22.856 22.175 21.446 v) Depreciation added back: 1.355 1.355 1.355 1.355 1.355 Total 41.450 21.076 24.211 23.530 22.801 b) Uses of Fund: i) Increase in Fixed Assets: 13.550 ii) Preliminary Expenses: 2.500 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 7.500 v) Decrease in Loan: 3.297 3.297 3.297 3.297 3.297 vi) Interest payable: 2.143 1.714 1.286 0.857 0.429 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 28.990 5.011 4.583 4.154 3.726 Opening Balance: 12.460 28.525 48.153 67.529 Surplus/Deficit Generated: 12.460 16.065 19.628 19.376 19.075 Closing Balance: 12.460 28.525 48.153 67.529 86.605O] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.18 1.18 1.18 1.18 1.18 ii) Cumulated Net Profit: 14.40 32.41 53.98 75.30 96.31 Net Worth: 15.58 33.59 55.16 76.47 97.49 iii) Subsidy: 5.89 5.89 5.89 5.89 5.89 iv) Loan at Bank: 13.19 9.89 6.59 3.30 0.00 Total 34.65 49.36 67.64 85.66 103.38 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 16.05 14.70 13.34 11.99 10.63 Less depreciation on Fixed Assets: 1.36 1.36 1.36 1.36 1.36 i) Net Block: 14.70 13.34 11.99 10.63 9.28 ii) Working Capital: 7.50 7.50 7.50 7.50 7.50 iii) Cash balance: 12.46 28.52 48.15 67.53 86.60 Total 34.65 49.36 67.64 85.66 103.38 Total Investment: 23.550 23.55 21.41 19.69 18.41 17.55 Return on Investment: 61.15 84.12 109.54 115.82 119.76 [100XNet profit/Total Investment]P] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 3.998 3.069 2.641 2.212 1.784 Other Operating Expenses 60% 4.800 5.136 5.496 5.880 6.292 Total 8.798 8.205 8.136 8.092 8.075 BEP [in % of target business] 32.954 28.022 25.153 25.591 26.154 [100xFC/(FC+Net profit)]Q] Machinery Supplier: 1 M/s. Amic Industries Pvt. Ltd., 10, B.T. Road, Kolkata - 700 056 2 M/s. Hi-Tech Machine Tools, 5, Khetradas Lane, Kolkata – 700 013 3 M/s. Durgapur Engg. Co. Ltd., 33/1, N.S. Road, Kolkata – 700 001 4 M/s. Pauls Engg. Enterprise, 17/711, Nana Singha Dutta Road, Kadamtola, Howrah – 700 001 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-95]A] Introduction: Gold is extremely corrosion resistant but it may be dissolved by acqua-regia, Potassium cyanide solution and in aqueous solution of the halogens. The metal does not form a coherent oxide film on its surface even at very high temperature and therefore, it has a very low contact resistant.B] Market Potential of the product: A number of applications are electroplating units, of which gold plating decorative items are most common. The important uses are in the Jewellery, Cutlery and allied trades, fancy goods such as hand bags, optical frames, power compacts and costumes jewellery. Thin deposit of pure gold may be applied over bright nickel and this can be more economic where wear resistant is required such as in watch cases, pen cases, and plumbing fixtures.C] Plant Capacity: Working days/year : 25 days in a month and 300 days in a year. Annual produce mix AT 70% Capacity Utilization : 1 Optical Frame – 50,000 : 2 Gold Plated Jewellery – 500 sq. mtr.D] Raw Material: Sl. No. Particulars Qnty. 1. Pure Gold (24 Carat) 2.400 Kg. 2. Potassium Cyanide 72 Kg. 3. Caustic Potash 120 Kg. 4. Potassium Sulphite 60 Kg. 5. Misc. Chemicals Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-96]E] Technical Aspects: Process of Manufacture: The gold is mainly electro deposited from gold Potassium Cyanide (GPC) solution which contains a certain quantity of gold. The articles which are to be plated are cleaned in a suitable hot alkaline soak cleaner and rinsed well. Then the article is pickled and etching is done in the chromic/sulphuric acid for 1 to 2 minutes at 60o 70oC. After etching, the articles are transferred to plating bath where the gold is deposited from the bath. The following sequence of operation is usually followed in gold plating: Article-Hot clean or degrease-swill-pickle-swill-Dry-Polished-Aqueous cleaning-Hot clean cathodic-swill Acid dip, if required – Swill-Final clean cathodic/Anodic-swill-Cyanide dip-swill-Bright Nickle Plating Washing-Gold Plating-drying. The articles are hanged in the cathode bar of the plating bath where the plating is done. Anode is made up of the pure gold metal (Electrode). Then DC current is passed between anode and cathode and gold is deposited on the job. The thickness of deposit depends on the time of deposit and current density. Preparation of the Bath : To prepare the gold plating bath, first clean the PVC lined plating tank with hot dilute acid and wash it out and again fill it to one third of its capacity with distilled water. The temperature of the water is raised to 60oC and the required weight of potassium gold cyanide and other chemicals are added. The mixtures being agitated well until all the salts are dissolved. Now the bath can be filled up to the required final level and the solution must be purified to remove the traces of the metallic impurities. Many formulations have been prepared so far for the gold planting. However, typical formulation and operating, condition are given below : Potassium Cyanide 12Gms. Potassium Gold Cyanide 18Gms. Caustic Potash 12Gms. Potassium Sulphite 5Gms. Distilled Water 1Ltr. Temperature 120oF To 180oF Current Density 2-6 amp/Sq.ft. Volt 1.5-2 Volts. Now a days a readymade gold plating salt is available in the market in which the required proportion of the chemicals are mixed which can also be utilized for the purpose. The unit has been identified as the polluting industry. hence,’ no objection certificate’ has to be taken from the Stated Pollution Control Board before starting the unit.F] Manpower Requirement: The unit proposes to employ 8 Nos. of both skilled and unskilled persons. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-97]G] Machineries & Equipments required: Machines/Equipments Amount Required (In Lakh Rs.) Description Qty. (Nos) Rectifier single phase DC. Out, 200 Amp. 6 Volts 1 Complete with Meted panel etc. Cleaning / swilling tank 2 MS Cap. 2’ x 2’ x 2’ Nickel Plating tank size 3’ x 3’ x 3’ MS, PVC Lined 1 with electrode Pipe and Immersion heater. Etching tank 2’ x 2’ x 2’ MS Rubber Lined with lip duct 1 and Blower arrangement. 5.9 Gold plating tank 3’ x 3’ x 3’ MS PVC, Lined with lip duct and 1 Blower Arrangement. Buffing machine single Phase 220 to 240 volts RPM 1440 with 1 other accessories. Misc. machineries PP L.S. Tubes, Jigs etc. Pollution Control Equipement L.S. Exhaust System etc. Energy Conservation L.S. Testing Equipment L.S. Total 5.9H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Land 14 Bighas 2. Working Shed: 1200 Sq. Ft. 3. Power 50 KW 4. Coal 200 Kg. per 1000 clay bricks. Note: The brick industry is highly seasonal in the NE region due to heavy rains in the region and production takes place for around 6 – 7 months in a year. Normally the labourers with some past experience travel to region from West Bengal and Bihar during the said season of brick manufacturing. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-98]I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent/Lease/own) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 0.00 iv. Plant & Machineries: 5.90 v. Misc. Fixed Assets: 1.20 (Furnitures, Fixtures, electrification etc.) Total 7.10 vi. Preliminary & Pre-operative expenses: 0.70 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 7.80 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 6.00 ii. Finished goods [15 Days] 7.00 iii. Receivables [10 Days] 2.50 Total amount of Working Capital required 15.50 Total Fund Required for the Project: [1 + 2] Rs 23.30 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 16.31 13.98 ii. Subsidy entitled: 5.83 8.16 iii. Own contribution @ 5% of Project Cost: 1.17 1.17 Total 23.30 23.30J] Annual Sales Forecasting: @ 70% Capacity Utilisation. Items Qnty Rate (Rs) Amount (Rs) 1 Optical Frame 50000 145 7250000 2 Gold Jewellery 500 Sq. Mtr. 3500 1750000 Rs. 90.00 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-99]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 90.00 102.86 115.71 115.71 115.71 2 Less Cost of Materials: 72.00 82.29 92.57 92.57 92.57 3 Gross Profit (1-2): 18.00 20.57 23.14 23.14 23.14 4 Less other operating expenses: i) Rent for Land: 0.40 0.43 0.46 0.49 0.52 ii) Salary for staff: 5.00 5.35 5.72 6.13 6.55 iii) Electricity and maintainance: 1.00 1.07 1.14 1.23 1.31 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 2.00 2.14 2.29 2.45 2.62 vi) Insurance and other misc. expenses: 0.20 0.21 0.23 0.25 0.26 Total of Sl. 4. 8.80 9.42 10.08 10.78 11.54 5 Profit before Depriciation, Interest and Taxes(3-4): 9.20 11.16 13.07 12.36 11.61 6 Less Depriciation on Fixed Assets: 0.71 0.71 0.71 0.71 0.71 7 profit before interest and taxes (5-6): 8.49 10.45 12.36 11.65 10.90 8 Less Interest payable on loan: 2.12 1.70 1.27 0.85 0.42 9 Profit before taxes (7-8): 6.37 8.75 11.09 10.80 10.4710 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 6.37 8.75 11.09 10.80 10.47 Percentage of Profit on Sale: 7.08 8.51 9.58 9.34 9.0512 Provision for repayment of loan: 3.26 3.26 3.26 3.26 3.2613 Retained Profit (11-12): 3.11 5.49 7.82 7.54 7.2114 Net Cash Accruals 3.82 6.20 8.53 8.25 7.92 [Depreciation added back with retained profit]15 Cumulated Net profit: 6.37 15.12 26.20 37.01 47.48 Pay-Back Period: 32 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 16.31 13.05 9.79 6.52 3.26 Proposed Repayment during the year: 3.26 3.26 3.26 3.26 3.26 Refundable loan at the end of the year: 13.05 9.79 6.52 3.26 0.00 Total Debt-Service [Interest+Repayment]: 5.38 4.96 4.53 4.11 3.69 Fund Available for Debt-Service: 9.20 11.16 13.07 12.36 11.61 Debt-Service Coverage Ratio: 1.71 2.25 2.88 3.01 3.15 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-100]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. i) Own Investment: 1.165 ii) Loan from Bank: 16.310 iii) Increase in Subsidy: 5.825 iv) Profit Before Interest and taxes: 8.490 10.445 12.358 11.652 10.898 v) Depreciation added back: 0.710 0.710 0.710 0.710 0.710 Total 32.500 11.155 13.068 12.362 11.608 b) Uses of Fund: i) Increase in Fixed Assets: 7.100 ii) Preliminary Expenses: 0.700 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 15.500 v) Decrease in Loan: 3.262 3.262 3.262 3.262 3.262 vi) Interest payable: 2.120 1.696 1.272 0.848 0.424 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 28.682 4.958 4.534 4.110 3.686 Opening Balance: 3.818 10.015 18.548 26.801 Surplus/Deficit Generated: 3.818 6.197 8.534 8.252 7.922 Closing Balance: 3.818 10.015 18.548 26.801 34.723N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.17 1.17 1.17 1.17 1.17 ii) Cumulated Net Profit: 6.37 15.12 26.20 37.01 47.48 Net Worth: 7.53 16.28 27.37 38.17 48.65 iii) Subsidy: 5.83 5.83 5.83 5.83 5.83 iv) Loan at Bank: 13.05 9.79 6.52 3.26 0.00 Total 26.41 31.89 39.72 47.26 54.47 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 7.80 7.09 6.38 5.67 4.96 Less depreciation on Fixed Assets: 0.71 0.71 0.71 0.71 0.71 i) Net Block: 7.09 6.38 5.67 4.96 4.25 ii) Working Capital: 15.50 15.50 15.50 15.50 15.50 iii) Cash balance: 3.82 10.01 18.55 26.80 34.72 Total 26.41 31.89 39.72 47.26 54.47 Total Investment: 23.300 23.30 21.18 19.48 18.21 17.36 Return on Investment: 27.34 41.31 56.90 59.33 60.32 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 3.230 2.406 1.982 1.558 1.134 Other Operating Expenses 60% 5.040 5.393 5.770 6.174 6.606 Total 8.270 7.799 7.752 7.732 7.740 BEP [in % of target business] 47.339 41.146 37.235 38.479 40.006 [100xFC/(FC+Net profit)] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-101]P] Machinery & Equipment Suppliers: 1. M/s Bhavi Shilp Industries, 5. M/s. Manisha Sales Corpn., 5/C, Bajaon Industrial Estate, 178, Chetan Cloth Market, Mumbai – 400099 Sarangpur Gate, Ahmedabad – 380001. 2. M/s Komal Agencies, 4, Shivagi Colony, 6. M/s. Canning Mitra Phoenics Ltd. Nr. Darpan Cinema, Eucharstic Congress Bldg. III Andheri (East), 5, Convent Street Mumbai – 400099 Mumbai – 400039 3. M/s Mahavir Chemical Industries, 7. M/s. Grauer & Weel (India) Ltd., Mahavir Estate,Behind Shah Chambers, Such Sagar, Nr. CTM Cross Lane, 6th Floor, N.S. Patkar Marg, Choupati, Mumbai – 400007. Amraiwadi, Ahmedabad 4. M/s. Delta Chemicals, 6, Delta House, J-I, Camazone, Goregaon (E), Mumbai – 400063 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-102]A] Introduction: The project refers to operations using computers for producing presentable documents. The project is scalable and can be developed in a phased manner according to the prospects of the business. The facility can be used to generate quality documents in English and in vernacular languages. Letter Heading and Letters, Complement Slips, Transparencies, CVs, Small Leaflets, Labels, Scanning of images and documents, Project works of the schools, colleges and universities can be produced from this set up.B] Market Potential of the product: With the advent of computers and its wide spread use in preparation of document has developed a sense of quality amongst the entire population. Tripura is no exception to this phenomenon. Under the circumstances, the project is expected to a good opportunity in the State Capital and District Headquarters as well as in commercial hubs. The facility can be used to generate quality documents in English and in vernacular languages. Letter Heads and Letters, Complement Slips, Transparencies, CVs, Small Leaflets, Labels, Brochures, Annual Reports, Magazines and Souvenirs of Schools, Colleges and Universities, Government Departments, Private Enterprise can be developed and produced from this set up. Proper awareness campaign along with aggressive marketing strategy will need to be adopted to market the services.C] Plant Capacity: Working Days per year : 300 days in a year. No. of shift : 8 hours in one shift. Job works to be handled per annum covering preparation of various documents as shown above under the headings Introduction and Market Potential.D] Consumables: The major consumables required for a documentation preparation service unit are computers stationery papers, bond paper, ribbon (printer), plotter ink, ink cartridge, Toner, Store media and packing materials. These consumables are readily available in the state capital and district headquarters of Tripura. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-103E] Process: The major steps involved in the operations of a documentation preparation service unit are as follows: • To identify design parameters, variables involved and their correlation • Data to be collected according to the design and job • Required software programme to be fed into the computer • Feed the required data to the computer • Make corrections if required • Run the programme • Get the ready required documents.F] Manpower Requirement: The unit will employ 10 Nos. of persons. 1 Manager 1 No. 2 Computer Operator 3 No. 3 Helper 6 No. Total 10G] Machineries & Equipments required: Machines/Equipments Amount Required (In Lakh Rs.) • Desktop Computers – 3 Nos. • Scanner – 1 No. • Desk Jet Colour Printer – 1 No. • Software (Windows 2007, Microsoft office 2007, Srilipi / Multilingual leap 7.5 • Abode Page Maker – 1 No. • Abode Photoshop – 1 No. • CD Writer – 1 No. • Networking • Laser Jet Colour Printer – 1 No. Total 7.5H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Required Workplace 250 Sq. Ft. 2. Power 2.5 KW 3. Coal Nominal for general use Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-104]I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent/Lease) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 0.00 iv. Plant & Machineries: 7.50 v. Misc. Fixed Assets: 1.00 (Furnitures, Fixtures, electrification etc.) Total 8.50 vi. Preliminary & Pre-operative expenses: 0.30 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 8.80 2. Working Capital: (Rs. In Lakh) i. Consumables: [2 Month] 0.85 ii. Finished goods [1 Month] 0.85 iii. Receivables [1 Month] 1.50 Total amount of Working Capital required 3.20 Total Fund Required for the Project: [1 + 2] Rs 12.00 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 8.40 7.20 ii. Subsidy entitled: 3.00 4.20 iii. Own contribution @ 5% of Project Cost: 0.60 0.60 Total 12.00 12.00J] Annual Sales Forecasting: @ 70% Capacity Sl.No. Particulars Value per annum (Rs Lakhs) 1. Job works to be handled per annum covering preparation of 15.00 various documents as shown above under the headings Introduction and Market Potential TOTAL 15.00 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-105]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 15.00 17.14 19.29 19.29 19.29 2 Less Cost of Materials: 5.10 5.83 6.56 6.56 6.56 3 Gross Profit (1-2): 9.90 11.31 12.73 12.73 12.73 4 Less other operating expenses: i) Rent for Land: 0.36 0.39 0.41 0.44 0.47 ii) Salary for staff: 4.00 4.28 4.58 4.90 5.24 iii) Electricity and maintainance: 0.30 0.32 0.34 0.37 0.39 iv) Office expenses (Stationary, Telephone etc.) 0.12 0.13 0.14 0.15 0.16 v) Advertising and Selling expenses: 0.10 0.11 0.11 0.12 0.13 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 4.98 5.33 5.70 6.10 6.53 5 Profit before Depriciation, Interest and Taxes(3-4): 4.92 5.99 7.03 6.63 6.20 6 Less Depriciation on Fixed Assets: 0.85 0.85 0.85 0.85 0.85 7 profit before interest and taxes (5-6): 4.07 5.14 6.18 5.78 5.35 8 Less Interest payable on loan: 1.09 0.87 0.66 0.44 0.22 9 Profit before taxes (7-8): 2.98 4.26 5.52 5.34 5.1310 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 2.98 4.26 5.52 5.34 5.13 Percentage of Profit on Sale: 19.85 24.86 28.63 27.69 26.6112 Provision for repayment of loan: 1.68 1.68 1.68 1.68 1.6813 Retained Profit (11-12): 1.30 2.58 3.84 3.66 3.4514 Net Cash Accruals 2.15 3.43 4.69 4.51 4.30 [Depreciation added back with retained profit]15 Cumulated Net profit: 2.98 7.24 12.76 18.10 23.24 Pay-Back Period: 34 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 8.40 6.72 5.04 3.36 1.68 Proposed Repayment during the year: 1.68 1.68 1.68 1.68 1.68 Refundable loan at the end of the year: 6.72 5.04 3.36 1.68 0.00 Total Debt-Service [Interest+Repayment]: 2.77 2.55 2.34 2.12 1.90 Fund Available for Debt-Service: 4.92 5.99 7.03 6.63 6.20 Debt-Service Coverage Ratio: 1.77 2.34 3.01 3.13 3.27 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-106]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. i) Own Investment: 0.600 ii) Loan from Bank: 8.400 iii) Increase in Subsidy: 3.000 iv) Profit Before Interest and taxes: 4.070 5.136 6.177 5.778 5.351 v) Depreciation added back: 0.850 0.850 0.850 0.850 0.850 Total 16.920 5.986 7.027 6.628 6.201 b) Uses of Fund: i) Increase in Fixed Assets: 8.500 ii) Preliminary Expenses: 0.300 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 3.200 v) Decrease in Loan: 1.680 1.680 1.680 1.680 1.680 vi) Interest payable: 1.092 0.874 0.655 0.437 0.218 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 14.772 2.554 2.335 2.117 1.898 Opening Balance: 2.148 5.580 10.272 14.783 Surplus/Deficit Generated: 2.148 3.432 4.692 4.511 4.302 Closing Balance: 2.148 5.580 10.272 14.783 19.085N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.60 0.60 0.60 0.60 0.60 ii) Cumulated Net Profit: 2.98 7.24 12.76 18.10 23.24 Net Worth: 3.58 7.84 13.36 18.70 23.84 iii) Subsidy: 3.00 3.00 3.00 3.00 3.00 iv) Loan at Bank: 6.72 5.04 3.36 1.68 0.00 Total 13.30 15.88 19.72 23.38 26.84 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 8.80 7.95 7.10 6.25 5.40 Less depreciation on Fixed Assets: 0.85 0.85 0.85 0.85 0.85 i) Net Block: 7.95 7.10 6.25 5.40 4.55 ii) Working Capital: 3.20 3.20 3.20 3.20 3.20 iii) Cash balance: 2.15 5.58 10.27 14.78 19.09 Total 13.30 15.88 19.72 23.38 26.84 Total Investment: 12.000 12.00 10.91 10.03 9.38 8.94 Return on Investment: 24.82 39.07 55.03 56.95 57.39 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 2.302 1.724 1.505 1.287 1.068 Other Operating Expenses 60% 2.772 2.966 3.174 3.396 3.634 Total 5.074 4.690 4.679 4.683 4.702 BEP [in % of target business] 50.770 43.930 39.970 41.401 43.126 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: 1 M/s. Systems & Appliances, Dealer, Wipro Infotech Ltd., Paltan Bazar, Guwahati-781 008. 2 M/s. HCL Limited, Ulubari, Guwahati-781 007 3 M/s. Blue Star Ltd, Paltan Bazar, Guwahati. (For AC System). Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-107]A] Introduction: Spices are essential ingredients adding taste and flavouring in food preparations. India is the largest producer and consumer of spices with a production of around 36.68 lakh tones. India is also the largest producer of chilli in world contributing 25% of the total world production. Indian spices are of the finest quality. Today the demand for it has considerably increased from all the countries. The project aims at production of ground spices especially chilli in consumer packs. The project mainly would involve production of Chilli powder, Termeric powder, Jeera powder, Dhania powder and mix spice powder.B] The Product: Powdered spices are convenient to use and also saves time and energy for preparing different delicious dishes. Besides their everyday use in households, spices are used in significant quantities in processed foods such as pickles and sauces. It is also very much useful particularly for the working couples, bachelors, hostels, hotels, restaurants, hospital and different camps of defence personnel spreading throughout the country.C] Market Potential of the product: Spices are integral part of Indian food (India has come to be known as “land of spices”) both as a component of daily food items as well as part of pickles, sauces & chutneys etc.. With changing of life style and with changes of food habits and increase of income level, the use of powdered spices has increased. Of late, the market for ready mix of spices has grown significantly. Export market for Indian spices is also growing- it was Rs. 2025 crore during 2000-01. Thus the market is huge with potential for quality producer. Numbers of brands have appeared in the market such as Sona, MDH, Ashok Masala, Sunrise etc. besides these, some of local brand are also there in the market. There are also good numbers of small units producing powdered spices, both in loose as well as packet formed. The consumption of spices in a household of five members, in the north eastern region is estimated at 100 gm. per person per month i.e. 6.0 kg per household per year. Of this share of, powdered spice may be taken at 50% i.e. 3.0 kg per household per year. In north eastern states powdered spices are used mainly in urban and semi urban areas and it may be conservatively assumed that 70% of the urban population uses powdered spices. Therefore, with the growth of population, demand for spices will automatically increase.D] Raw Material/Consumable: The major raw materials required for this unit are turmeric, chilly, jeera and dhania etc. Based on an average yields of 95% from ungrounded spices to powdered spices and annual requirement of raw materials would be about 53 tonne (based on 100% capacity utilization). 1. Turmeric 21.00 tonne 2. Chilly 10.50 tonne 3. Jeera 5.25 tonne 4. Dhania 5.25 tonne 5. Mix Powder (dhania, chilly, pepper, 11.00 tonne bay leaf & curry leaf etc.) ___________ 53.00 tonne Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-108]E] Process Flow Chart:F] Production Capacity (per annum): To assess the proposed plant capacity due consideration is given on availability of raw materials, availability of electricity and market. The annual production of 50 tonne is suggested, the production and product-mix per annum will be as follows: Item Installed Capacity (TPA) Turmeric powder 20 Chilli powder 10 Jeera powder 5 Dhania Powder 5 Mix Powder (dhania, chilly, 10 pepper, bay leaf & curry leaf etc.) Total 50 Basis: No. of working days = 300 days per year No. of shifts = 1 per day. One shift = 8 hours Annual Production = 50 tonsG] Requirement of Infrastructure: The major infrastructure requirements are – 1. Shed area etc. 800 Sq Ft. 2. Power 15 KW 3. Water 4000 Ltrs / DayH] Machineries & Equipments required: Amount Required (In Lakh Rs.) i) Spice Grinding Machine 24” Vartical stone, complete set : 2 sets. ii) Electric Motor 15 h.p. 1400 RPM with Starter : 1 No. iii) Power Capacitor 6 KVAR : 1 No. iv) V. Belt, Pulley : 2 Set. 4.8 v) Line shaft, rubber pulley bearing and block etc : 2 Set. vi) Rubber belt, foundation bolt and weighing scales etc. accessories : L.S. Total 4.8 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page -109]I] Manpower Required: The total manpower required for the unit s 09 Nos. consisting of the following: 1 Manager 1 No. 2 Skilled Worker 3 No. 3 Un-Skilled Worker 4 No. 4 Peon/Chowkidar 1 No. Total 9J] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (On Lease/own) 0.00 ii. Site Development: 0.00 iii. Building/Working Shed: (Rented/leased) 0.00 iv. Plant & Machineries: 4.80 v. Misc. Fixed Assets: 3.20 (Furnitures, Fixtures, electrification etc.) Total 8.00 vi. Preliminary & Pre-operative expenses: 0.80 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 8.80 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 3.50 ii. Finished Goods: [1 Month] 4.00 iii. Receivables [10 Days] 1.70 Total amount of Working Capital required 9.20 Total Fund Required for the Project: [1 + 2] Rs 18.00 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 12.60 10.80 ii. Subsidy entitled: 4.50 6.30 iii. Own contribution @ 5% of Project Cost: 0.90 0.90 Total 18.00 18.00K] Annual Sales Forecasting: @ 70% Capacity Utilisation. Items Qnty (Tons.) Rate (Rs) Amount (Rs) 1 Dhania(coriander) 5 95000 475000 2 Chilli powder 10 122000 1220000 3 Haldi(turmeric) 20 98000 1960000 4 Jeera ( camin seed) 5 163000 815000 5 Mix Powder 10 190000 1900000 6370000 Total Projected annual sale = Rs 63.7 Lakh Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-110]L] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year Capacity Utilisation (In %)- 70 80 90 90 90 1 Expected Sales: 63.70 72.80 81.90 81.90 81.90 2 Less Cost of Materials: 42.00 48.00 54.00 54.00 54.00 3 Gross Profit (1-2): 21.70 24.80 27.90 27.90 27.90 4 Less other operating expenses: i) Rent for Land: 0.50 0.54 0.57 0.61 0.66 ii) Salary for staff: 6.00 6.42 6.87 7.35 7.86 iii) Electricity and maintainance: 1.00 1.07 1.14 1.23 1.31 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 2.00 2.14 2.29 2.45 2.62 vi) Insurance and other misc. expenses: 0.20 0.21 0.23 0.25 0.26 Total of Sl. 4. 9.90 10.59 11.33 12.13 12.98 5 Profit before Depriciation, Interest and Taxes(3-4): 11.80 14.21 16.57 15.77 14.92 6 Less Depriciation on Fixed Assets: 0.80 0.80 0.80 0.80 0.80 7 profit before interest and taxes (5-6): 11.00 13.41 15.77 14.97 14.12 8 Less Interest payable on loan: 1.64 1.31 0.98 0.66 0.33 9 Profit before taxes (7-8): 9.36 12.10 14.78 14.32 13.8010 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 9.36 12.10 14.78 14.32 13.80 Percentage of Profit on Sale: 14.70 16.62 18.05 17.48 16.8412 Provision for repayment of loan: 2.52 2.52 2.52 2.52 2.5213 Retained Profit (11-12): 6.84 9.58 12.26 11.80 11.2814 Net Cash Accruals 7.64 10.38 13.06 12.60 12.08 [Depreciation added back with retained profit]15 Cumulated Net profit: 9.36 21.46 36.24 50.56 64.35 Pay-Back Period: 20 MonthsM] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 12.60 10.08 7.56 5.04 2.52 Proposed Repayment during the year: 2.52 2.52 2.52 2.52 2.52 Refundable loan at the end of the year: 10.08 7.56 5.04 2.52 0.00 Total Debt-Service [Interest+Repayment]: 4.16 3.83 3.50 3.18 2.85 Fund Available for Debt-Service: 11.80 14.21 16.57 15.77 14.92 Debt-Service Coverage Ratio: 2.84 3.71 4.73 4.97 5.24 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-111]N] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.900 ii) Loan from Bank: 12.600 iii) Increase in Subsidy: 4.500 iv) Profit Before Interest and taxes: 11.000 13.407 15.765 14.972 14.123 v) Depreciation added back: 0.800 0.800 0.800 0.800 0.800 Total 29.800 14.207 16.565 15.772 14.923 b) Uses of Fund: i) Increase in Fixed Assets: 8.000 ii) Preliminary Expenses: 0.800 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 9.200 v) Decrease in Loan: 2.520 2.520 2.520 2.520 2.520 vi) Interest payable: 1.638 1.310 0.983 0.655 0.328 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 22.158 3.830 3.503 3.175 2.848 Opening Balance: 7.642 18.019 31.081 43.678 Surplus/Deficit Generated: 7.642 10.377 13.063 12.597 12.076 Closing Balance: 7.642 18.019 31.081 43.678 55.754O] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.90 0.90 0.90 0.90 0.90 ii) Cumulated Net Profit: 9.36 21.46 36.24 50.56 64.35 Net Worth: 10.26 22.36 37.14 51.46 65.25 iii) Subsidy: 4.50 4.50 4.50 4.50 4.50 iv) Loan at Bank: 10.08 7.56 5.04 2.52 0.00 Total 24.84 34.42 46.68 58.48 69.75 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 8.80 8.00 7.20 6.40 5.60 Less depreciation on Fixed Assets: 0.80 0.80 0.80 0.80 0.80 i) Net Block: 8.00 7.20 6.40 5.60 4.80 ii) Working Capital: 9.20 9.20 9.20 9.20 9.20 iii) Cash balance: 7.64 18.02 31.08 43.68 55.75 Total 24.84 34.42 46.68 58.48 69.75 Total Investment: 18.000 18.00 16.36 15.05 14.07 13.41 Return on Investment: 52.01 73.93 98.21 101.76 102.85 [100XNet profit/Total Investment]P] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 2.938 2.110 1.783 1.455 1.128 Other Operating Expenses 60% 5.640 6.035 6.457 6.909 7.393 Total 8.578 8.145 8.240 8.364 8.520 BEP [in % of target business] 42.094 36.440 33.219 34.655 36.345 [100xFC/(FC+Net profit)]Q] Machinery Supplier: 1 M/S Archana Machinery Stores, M.S. Road, Fency Bazer, Guwahati-781 001. 2 M/S Shew Machinery Store, A.T. Road, Guwahati-781 001. 3 M/S Process Machinery & Equipments Pvt. Ltd., 8A, Shyamapaprasad Mukherjee Road., Kolkata-700 025. 4 M/S Bengal Metal Works, 69A, Serpentine Lane, Kolkata-700 014. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-112]A] Introduction: India is one of the largest producers of potato. Besides being used as a daily food item in various vegetable preparations, potato today increasingly finds use in the form of chips or wafers as snacks food. The potato chips and wafers are popular processed food items that give considerable value addition to potatoes as also opens up employment opportunities.B] Market Potential of the product: The main consumers of potato chips and wafers are families especially in urban and semi-urban areas. Besides, hotels, restaurants, canteens, army establishments require potato chips in significant quantities. The leading brands are Lays, Binnies, Uncle chips, Ruffles, Bingos. These are priced at around Rs 20.00 per pack of 90 gm i.e. around Rs 220/- per kg. It should be possible for tiny units in small urban areas in Tripura to sell potato chips at around Rs 170/- per kg. and this would enable them to penetrate in the market. In urban areas, the per capita consumption of potato chips or wafers may be conservatively taken as ½ Kg. per annum. The annual demand in a town having a population of 2 lakh is estimated at 100 tons kg. per year. Therefore a tiny unit could be set up with a capacity of 100 tons to 15 tons/annum. In a town with a population of 2 lakhs. If there are two units, they would be catering to only 25 to 30% of the demand. Hence, there are good prospects for potato chips units especially near the potato growing area in Tripura.C] Plant Capacity: A capacity of processing 9000 kg per annum and annual output of 6300 kg is suggested on the following basis. Processing capacity per day : 240 Kg. Average yield of wafer/chip : 12.5% Daily production per single shift of 8 hours : 30 Kg. Effective working days per year : 300 days Annual production capacity : 9000 kg. Capacity utilization in the first year : 70% Annual output : 6300 kg. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-113]D] Consumables: Fresh potatoes are the main raw materials. Besides, edible oil is required as a frying medium and additives such as salt and flavouring agents are required. Consumable is mainly packing material i.e. polythene bags. The annual requirement of potato and edible oil corresponding to the annual production of 6300 tonnes in the first year is as follows: Fresh Potato : 50,400 kg. Edible oil : 4,000 Ltrs. The annual production of potato in the north-eastern region is about 9.42 lakh tones per year. It is grown mainly in Assam, Meghalaya, Tripura, Nagaland and Arunachal Pradesh. The State-wise production is as follows: Lakh tones/year 2004-05___ Assam : 5.89 Meghalaya : 1.49 Tripura : 1.06 Nagaland : 0.20 Manipur : 0.01 Sikkim : 0.33 Mizoram : 0.04 Arunachal Pradesh : 0.40 ________ Total 9.42 lakh tones.E] Process: The main process steps in the production of potato chips are – i) Visual inspection and sorting of potatoes; ii) Washing; iii) Peeling and trimming; iv) Slicing and cutting; v) Washing, sorting and dewatering; vi) Frying; vii) Cooling, salting and packing. Process Flow Chart:F] Manpower Requirement: The unit will employ 4 Nos. of persons. 1 Manager 1 No. 2 Factory Staff 3 No. Total 4 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-114]G] Machineries & Equipments required: Machines/Equipments Amount Required (In Lakh Rs.) i) Potato peeling machine cap. 40/50 kg per hour with 0.5 HP motor. ii) Slicing machine with arrangement to adjust thickness of slice complete with motor etc. iii) Blancher 3.6 iv) Spin dryer to extract excess moisture cap.4kg/charge taking 3 to 4 minutes complete with motor. v) Deep fat fryer vi) Electric polythene bag sealing machine upto 30cm wide. vii) Weighing machine. Total 3.6H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Required Workplace 1000 Sq. Ft. 2. Power 2.5 KW 3. Water 1600 Ltrs / DayI] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent/Lease) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 0.00 iv. Plant & Machineries: 3.60 v. Misc. Fixed Assets: 1.20 (Furnitures, Fixtures, electrification etc.) Total 4.80 vi. Preliminary & Pre-operative expenses: 0.80 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 5.60 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 0.70 ii. Finished goods [15 Days] 0.60 iii. Receivables [7 Days] 0.30 Total amount of Working Capital required 1.60 Total Fund Required for the Project: [1 + 2] Rs 7.20 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 5.04 4.32 ii. Subsidy entitled: 1.80 2.52 iii. Own contribution @ 5% of Project Cost: 0.36 0.36 Total 7.20 7.20 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-115]J] Annual Sales Forecasting: @ 70% Capacity The basis for calculation of Potato chips is @ Rs.220/- per Kg. Thus, Annual Sales comes to (Rs. 220/- X 6300 Kg) = Rs 13.86 LakhK] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 13.86 15.84 17.82 17.82 17.82 2 Less Cost of Materials: 8.40 9.60 10.80 10.80 10.80 3 Gross Profit (1-2): 5.46 6.24 7.02 7.02 7.02 4 Less other operating expenses: i) Rent for Land: 0.30 0.32 0.34 0.37 0.39 ii) Salary for staff: 1.50 1.61 1.72 1.84 1.97 iii) Electricity and maintainance: 0.20 0.21 0.23 0.25 0.26 iv) Office expenses (Stationary, Telephone etc.) 0.10 0.11 0.11 0.12 0.13 v) Advertising and Selling expenses: 0.20 0.21 0.23 0.25 0.26 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 2.40 2.57 2.75 2.94 3.15 5 Profit before Depriciation, Interest and Taxes(3-4): 3.06 3.67 4.27 4.08 3.87 6 Less Depriciation on Fixed Assets: 0.48 0.48 0.48 0.48 0.48 7 profit before interest and taxes (5-6): 2.58 3.19 3.79 3.60 3.39 8 Less Interest payable on loan: 0.66 0.52 0.39 0.26 0.13 9 Profit before taxes (7-8): 1.92 2.67 3.40 3.34 3.2610 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 1.92 2.67 3.40 3.34 3.26 Percentage of Profit on Sale: 13.89 16.84 19.07 18.73 18.3112 Provision for repayment of loan: 1.01 1.01 1.01 1.01 1.0113 Retained Profit (11-12): 0.92 1.66 2.39 2.33 2.2614 Net Cash Accruals 1.40 2.14 2.87 2.81 2.74 [Depreciation added back with retained profit]15 Cumulated Net profit: 1.92 4.59 7.99 11.33 14.59 Pay-Back Period: 32 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 5.04 4.03 3.02 2.02 1.01 Proposed Repayment during the year: 1.01 1.01 1.01 1.01 1.01 Refundable loan at the end of the year: 4.03 3.02 2.02 1.01 0.00 Total Debt-Service [Interest+Repayment]: 1.66 1.53 1.40 1.27 1.14 Fund Available for Debt-Service: 3.06 3.67 4.27 4.08 3.87 Debt-Service Coverage Ratio: 1.84 2.40 3.05 3.21 3.40 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-116]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.360 ii) Loan from Bank: 5.040 iii) Increase in Subsidy: 1.800 iv) Profit Before Interest and taxes: 2.580 3.192 3.792 3.600 3.394 v) Depreciation added back: 0.480 0.480 0.480 0.480 0.480 Total 10.260 3.672 4.272 4.080 3.874 b) Uses of Fund: i) Increase in Fixed Assets: 4.800 ii) Preliminary Expenses: 0.800 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 1.600 v) Decrease in Loan: 1.008 1.008 1.008 1.008 1.008 vi) Interest payable: 0.655 0.524 0.393 0.262 0.131 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 8.863 1.532 1.401 1.270 1.139 Opening Balance: 1.397 3.537 6.408 9.218 Surplus/Deficit Generated: 1.397 2.140 2.871 2.810 2.735 Closing Balance: 1.397 3.537 6.408 9.218 11.953N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.36 0.36 0.36 0.36 0.36 ii) Cumulated Net Profit: 1.92 4.59 7.99 11.33 14.59 Net Worth: 2.28 4.95 8.35 11.69 14.95 iii) Subsidy: 1.80 1.80 1.80 1.80 1.80 iv) Loan at Bank: 4.03 3.02 2.02 1.01 0.00 Total 8.12 9.78 12.17 14.50 16.75 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 5.60 5.12 4.64 4.16 3.68 i) Net Block: 5.12 4.64 4.16 3.68 3.20 ii) Working Capital: 1.60 1.60 1.60 1.60 1.60 iii) Cash balance: 1.40 3.54 6.41 9.22 11.95 Total 8.12 9.78 12.17 14.50 16.75 Total Investment: 7.200 7.20 6.54 6.02 5.63 5.37 Return on Investment: 26.73 40.76 56.46 59.31 60.82 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 1.435 1.004 0.873 0.742 0.611 Other Operating Expenses 60% 1.260 1.348 1.443 1.544 1.652 Total 2.695 2.352 2.316 2.286 2.263 BEP [in % of target business] 46.831 39.047 35.151 35.906 36.870 [100xFC/(FC+Net profit)] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-117]P] Machinery & Equipment Suppliers: 1. M/s Gardener’s Corporation, 2. M/s Hindustan Engineering Co., 6, Doctor’s Lane, 25/31, Ropewalk Street, (Near Gole Market) Rampart Row. Post Box No. 299, Fort, New Delhi – 110 001. Mumbai – 400 023 3. M/s Raylons Metal Works, 4. M/s Prakash Machine Tools, J.B. Nagar, 5, Khetra Das Lane, Kondivitta Lane, (Besides Broadway Hotel), Andheri, Kolkata – 700 012 Mumbai – 400 059 5. M/s B. Sen Barry & Co. 65/11, Rohtak Road, Karol Bagh, New Delhi – 110 005. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-118]A] Introduction: Mustard oil is the main medium of cooking in the State of Tripura. It is also used in pickles. It has lower fatty acid contents when compared to groundnut oil. Mustard oil cake (by-product) is a common ingredient of cattle feed. It can also be used as manure.B] Market Potential of the product: Based on the per capita consumption of 6 kg. per annum and considering the population as 365 lakhs, the edible oil consumption in the north-eastern region can be placed at 2,19,000 tonne per annum. The main brands used in the north-eastern region are Anupam, Nihar, Dhara and Nivaz etc. Since the local production is not adequate, substantial quantity is brought from outside especially from Gujarat, Haryana, Rajasthan etc. Due to transportation cost, trader’s margin etc., the price of oil increases when it reaches the ultimate point i.e. the final consumer. When the production is based on locally available raw material and the primary market is nearby, the above additional expenses can be done away with. Whenever mustard seed is available, tiny mustard oil units can be set up to serve local demands. For a population of about 2,00,000, the requirement of mustard oil would be 1200 tpa. The availability of mustard seeds in the state of Tripura is not being fully exploited for oil extraction. Assuming that the tiny units cater to 20% of the market, there appears to be scope for setting up 1 tiny unit with a capacity of 160 tpa for every population of 2 lakhs.C] Plant Capacity: Keeping in view the availability of raw material marketing aspect, investment range, etc. a capacity of 160 tpa and a production of 110 tpa of mustard oil is suggested as on first year (70%) is on the following basis : Throughput rate 1.5 tonne/shift Yield of mustard oil 35% No. of shifts per day 1(8 hour shift) No. of working days 300 Annual production 110 tonne. In addition, 195 tonne of oil cake would be recovered as a by-product.D] Raw Materials: The annual requirement of raw materials namely mustard seed is estimated at 315 tonne. The total production of mustard seed in the north-eastern region is about 1,77,700 tpa. Tripura produced about 2446 tonnes in 2001-2002. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-119]E] Process: The main process steps are – i) Drying and cleaning of mustard seeds. ii) Cooking of seed in the kettle provided with the expeller. iii) Crushing of cooked seed in expeller. iv) Filtering in the filter process. v) Collection of oil in the storage tank. vi) Packing of oil in tins and oil cake in gunny bags. The cake collected at the discharge end of the expeller is recycled back for further recovery of oil. The overall recovery would be around 35%. The final cake may contain about 8% residual oil. Further recovery of oil may not be possible in the expeller. Process Flow Chart:F] Manpower Requirement: The unit will employ 5 Nos. of persons. 1 Manager 1 No. 2 Factory Staff 4 No. Total 5G] Machineries & Equipments required: Machines/Equipments Amount Required (In Lakh Rs.) i) One 1.5 tonne/shift crushing capacity oil expeller. ii) One filter press. iii) One baby boiler of capacity 100 kg/hr. 12.75 iv) One 250 kg. platform weighing scale. v) One oil storage tank. Total 12.75H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Required Workplace 5000 Sq. Ft. 2. Power 20 KW 3. Water 800 Ltrs / Day Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-120]I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent/Lease/own) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: (rent/lease) 0.00 iv. Plant & Machineries: 12.75 v. Misc. Fixed Assets: 1.50 (Furnitures, Fixtures, electrification etc.) Total 14.25 vi. Preliminary & Pre-operative expenses: 1.00 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 15.25 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [15 Days] 3.00 ii. Finished goods [7 Days] 1.80 iii. Receivables [7 Days] 1.50 Total amount of Working Capital required 6.30 Total Fund Required for the Project: [1 + 2] Rs 21.55 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 15.09 12.93 ii. Subsidy entitled: 5.39 7.54 iii. Own contribution @ 5% of Project Cost: 1.08 1.08 Total 21.55 21.55J] Annual Sales Forecasting: @ 70% Capacity Based on the ex-factory product-mix comprising 110 tonne of mustard oil and 195 tonne of oil cake and the prevailing prices, the annual sales realization is estimated at Rs 89.00 lakhs per year as under : Product Yield Output Sales Price Total (%) (MT) Rs./MT Realisation (Lakh Rs) Mustard oil 35 110 80,000 88.00 Cake 62 195 8,000 15.60 Waste 3 10 - 2.00 100% 315 - 105.6 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-121]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 105.60 120.69 135.77 135.77 135.77 2 Less Cost of Materials: 72.00 82.29 92.57 92.57 92.57 3 Gross Profit (1-2): 33.60 38.40 43.20 43.20 43.20 4 Less other operating expenses: i) Rent for Land: 1.20 1.28 1.37 1.47 1.57 ii) Salary for staff: 2.00 2.14 2.29 2.45 2.62 iii) Electricity and maintainance: 1.00 1.07 1.14 1.23 1.31 iv) Office expenses (Stationary, Telephone etc.) 0.50 0.54 0.57 0.61 0.66 v) Advertising and Selling expenses: 6.00 6.42 6.87 7.35 7.86 vi) Insurance and other misc. expenses: 0.50 0.54 0.57 0.61 0.66 Total of Sl. 4. 11.20 11.98 12.82 13.72 14.68 5 Profit before Depriciation, Interest and Taxes(3-4): 22.40 26.42 30.38 29.48 28.52 6 Less Depriciation on Fixed Assets: 1.43 1.43 1.43 1.43 1.43 7 profit before interest and taxes (5-6): 20.98 24.99 28.95 28.05 27.09 8 Less Interest payable on loan: 1.96 1.57 1.18 0.78 0.39 9 Profit before taxes (7-8): 19.01 23.42 27.78 27.27 26.7010 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 19.01 23.42 27.78 27.27 26.70 Percentage of Profit on Sale: 18.01 19.41 20.46 20.09 19.6712 Provision for repayment of loan: 3.02 3.02 3.02 3.02 3.0213 Retained Profit (11-12): 16.00 20.41 24.76 24.25 23.6814 Net Cash Accruals 17.42 21.83 26.18 25.68 25.11 [Depreciation added back with retained profit]15 Cumulated Net profit: 19.01 42.44 70.21 97.48 124.18 Pay-Back Period: 13 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 15.09 12.07 9.05 6.03 3.02 Proposed Repayment during the year: 3.02 3.02 3.02 3.02 3.02 Refundable loan at the end of the year: 12.07 9.05 6.03 3.02 0.00 Total Debt-Service [Interest+Repayment]: 4.98 4.59 4.19 3.80 3.41 Fund Available for Debt-Service: 22.40 26.42 30.38 29.48 28.52 Debt-Service Coverage Ratio: 4.50 5.76 7.24 7.75 8.37 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-122]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 1.078 ii) Loan from Bank: 15.085 iii) Increase in Subsidy: 5.388 iv) Profit Before Interest and taxes: 20.975 24.991 28.952 28.055 27.094 v) Depreciation added back: 1.425 1.425 1.425 1.425 1.425 Total 43.950 26.416 30.377 29.480 28.519 b) Uses of Fund: i) Increase in Fixed Assets: 14.250 ii) Preliminary Expenses: 1.000 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 6.300 v) Decrease in Loan: 3.017 3.017 3.017 3.017 3.017 vi) Interest payable: 1.961 1.569 1.177 0.784 0.392 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 26.528 4.586 4.194 3.801 3.409 Opening Balance: 17.422 39.252 65.436 91.114 Surplus/Deficit Generated: 17.422 21.830 26.183 25.678 25.110 Closing Balance: 17.422 39.252 65.436 91.114 116.224N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.08 1.08 1.08 1.08 1.08 ii) Cumulated Net Profit: 19.01 42.44 70.21 97.48 124.18 Net Worth: 20.09 43.51 71.29 98.56 125.26 iii) Subsidy: 5.39 5.39 5.39 5.39 5.39 iv) Loan at Bank: 12.07 9.05 6.03 3.02 0.00 Total 37.55 57.95 82.71 106.96 130.65 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 15.25 13.83 12.40 10.98 9.55 i) Net Block: 13.83 12.40 10.98 9.55 8.13 ii) Working Capital: 6.30 6.30 6.30 6.30 6.30 iii) Cash balance: 17.42 39.25 65.44 91.11 116.22 Total 37.55 57.95 82.71 106.96 130.65 Total Investment: 21.550 21.55 19.59 18.02 16.84 16.06 Return on Investment: 88.23 119.57 154.14 161.90 166.27 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 4.586 2.994 2.602 2.209 1.817 Other Operating Expenses 60% 6.000 6.420 6.869 7.350 7.865 Total 10.586 9.414 9.471 9.560 9.682 BEP [in % of target business] 32.093 26.274 23.768 24.487 25.345 [100xFC/(FC+Net profit)] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-123]P] Machinery & Equipment Suppliers: 1. M/S Archana Machinery Ltd., A.T.Road, Guwahati. 2. M/s Delhi Iron & Steel Co.(P) Ltd., G.T.Road, Ghaziabad, Uttar Pradesh. 3. M/s Laxmi Welding & Boiler Works, B-3, Rustom Bagh, Byculla, Bombay-400 027. 4. M/s S.P.Engg. Co., 79/9, Latouche Road, P.B.No.218, Kanpur-308 001. 5. M/s Swastic Engg. Works, 198, Panjar Pole Road, Bombay-400 004. 6. M/s United Engineering (Eastern) Corporation, 22, Biplabi Rash Behari Bose Road, Calcutta-700 001. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-124]A] Introduction: Vegetables including ginger are seasonal and perishable. Dehydration is one of the methods to preserve them in a dry form and thus making it available throughout the year in hygienic conditions at reasonable cost. The dehydrated vegetables are easy to transport and they cater to the needs of large catering establishments as well as defence establishments and are useful for adventure expeditions like Antarctica expedition, mountaineering etc. They can be used in various preparations at any season of the year. The dehydrated vegetable unit can be established in rural areas where the raw material availability is assured with other facilities. Such unit can be established under cooperative sector/ proprietorship. The manufacturers of dehydrated vegetable products need to take license under fruit products order (F.P.O.).B] Market Potential of the product: Ginger is marketed in India as a whole in raw condition or in dried form and to some extent it is also used for oil/oleoresin extraction purposes. Ginger can be dehydrated suitably on a small scale in growing centres in rural parts of Tripura and nearby urban centres. Of late, in Metro-cities, other cities of India dried ginger is preferred for various purposes since the product could be stored for a long period (about a year) and convenient to use for various purposes. In Tripura too the demand for dried ginger is slowly picking up particularly in big hotels, clubs and various prestigious functions.C] Plant Capacity: Working Days per year : 150 days in a year (being seasonal). No.of shift : 8 hours in one shift. Production Capacity : 20 Kgs of Dehydrated Gingers/Day at 100% Capacity.D] Raw Materials: About 100 Kgs of green ginger will be required per day for processing into 20 Kgs of dehyraded ginger. Besides, Tripura required green ginger may also be procured from the neighbouring State of Mizoram which is very rich in production of quality ginger. The main packing material required is various sizes of polythene bags packing dehydrated ginger.E] Process: The process mainly consists of grading/sorting of green ginger, washing, waxing, peeling/trimming, blanching, slicing, drying and packing. The sliced ginger are to be dried in a mechanical drier at a critical temperature of 60°C. The drying time is usually 24 hours if dried in cross-flow drier at 60°C and only 14 hours in through flow drier. The dehydrated ginger is then packed and ready for dispatch / store. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-125]F] Manpower Requirement: The unit will employ 7 Nos. of persons. 1 Manager 1 No. 2 Factory Staff 4 No. 3 Helper 2 No. Total 7G] Machineries & Equipments required: Machines/Equipments Amount Required (In Lakh Rs.) The major equipment required by the unit are as follows : Washing tanks, wooden preparation tables, peelers, slicing machines, cross-flow drier or through flow drier, knives, trolleys, 11 aluminium vessels, weighing scales and packing unit. Total 11H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Required Workplace 2000 Sq. Ft. 2. Power 10 KW 3. Water 10000 Ltrs / DayI] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent/Lease/own) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 10.00 iv. Plant & Machineries: 11.00 v. Misc. Fixed Assets: 0.60 (Furnitures, Fixtures, electrification etc.) Total 21.60 vi. Preliminary & Pre-operative expenses: 0.25 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 21.85 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 1.20 ii. Finished goods [15 Days] 0.85 iii. Receivables [7 Days] 1.10 Total amount of Working Capital required 3.15 Total Fund Required for the Project: [1 + 2] Rs 25.00 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 17.50 15.00 ii. Subsidy entitled: 6.25 8.75 iii. Own contribution @ 5% of Project Cost: 1.25 1.25 Total 25.00 25.00 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-126]J] Annual Sales Forecasting: @ 70% Capacity The sales realization is calculated for the first year of operation as below: Sl.No. Particulars Value per annum (Rs Lakhs) 1. Sale of 2100 Kgs of dried ginger per annum 28.35 @ Rs. 1350/- per Kg dried ginger Total : 28.35K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 28.35 32.40 36.45 36.45 36.45 2 Less Cost of Materials: 14.40 16.46 18.51 18.51 18.51 3 Gross Profit (1-2): 13.95 15.94 17.94 17.94 17.94 4 Less other operating expenses: i) Rent for Land: 0.24 0.26 0.27 0.29 0.31 ii) Salary for staff: 1.20 1.28 1.37 1.47 1.57 iii) Electricity and maintainance: 0.36 0.39 0.41 0.44 0.47 iv) Office expenses (Stationary, Telephone etc.) 0.10 0.11 0.11 0.12 0.13 v) Advertising and Selling expenses: 0.50 0.54 0.57 0.61 0.66 vi) Insurance and other misc. expenses: 0.20 0.21 0.23 0.25 0.26 Total of Sl. 4. 2.60 2.78 2.98 3.19 3.41 5 Profit before Depriciation, Interest and Taxes(3-4): 11.35 13.16 14.96 14.75 14.53 6 Less Depriciation on Fixed Assets: 2.16 2.16 2.16 2.16 2.16 7 profit before interest and taxes (5-6): 9.19 11.00 12.80 12.59 12.37 8 Less Interest payable on loan: 2.28 1.82 1.37 0.91 0.46 9 Profit before taxes (7-8): 6.92 9.18 11.43 11.68 11.9110 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 6.92 9.18 11.43 11.68 11.91 Percentage of Profit on Sale: 24.39 28.34 31.37 32.05 32.6812 Provision for repayment of loan: 3.50 3.50 3.50 3.50 3.5013 Retained Profit (11-12): 3.42 5.68 7.93 8.18 8.4114 Net Cash Accruals 5.58 7.84 10.09 10.34 10.57 [Depreciation added back with retained profit]15 Cumulated Net profit: 6.92 16.10 27.53 39.21 51.12 Pay-Back Period: 33 Months Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-127]L] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 17.50 14.00 10.50 7.00 3.50 Proposed Repayment during the year: 3.50 3.50 3.50 3.50 3.50 Refundable loan at the end of the year: 14.00 10.50 7.00 3.50 0.00 Total Debt-Service [Interest+Repayment]: 5.78 5.32 4.87 4.41 3.96 Fund Available for Debt-Service: 11.35 13.16 14.96 14.75 14.53 Debt-Service Coverage Ratio: 1.97 2.47 3.07 3.34 3.67M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 1.250 ii) Loan from Bank: 17.500 iii) Increase in Subsidy: 6.250 iv) Profit Before Interest and taxes: 9.190 11.001 12.799 12.591 12.368 v) Depreciation added back: 2.160 2.160 2.160 2.160 2.160 Total 36.350 13.161 14.959 14.751 14.528 b) Uses of Fund: i) Increase in Fixed Assets: 21.600 ii) Preliminary Expenses: 0.250 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 3.150 v) Decrease in Loan: 3.500 3.500 3.500 3.500 3.500 vi) Interest payable: 2.275 1.820 1.365 0.910 0.455 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 30.775 5.320 4.865 4.410 3.955 Opening Balance: 5.575 13.416 23.510 33.850 Surplus/Deficit Generated: 5.575 7.841 10.094 10.341 10.573 Closing Balance: 5.575 13.416 23.510 33.850 44.423N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.25 1.25 1.25 1.25 1.25 ii) Cumulated Net Profit: 6.92 16.10 27.53 39.21 51.12 Net Worth: 8.17 17.35 28.78 40.46 52.37 iii) Subsidy: 6.25 6.25 6.25 6.25 6.25 iv) Loan at Bank: 14.00 10.50 7.00 3.50 0.00 Total 28.42 34.10 42.03 50.21 58.62 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 21.85 19.69 17.53 15.37 13.21 Less depreciation on Fixed Assets: 2.16 2.16 2.16 2.16 2.16 i) Net Block: 19.69 17.53 15.37 13.21 11.05 ii) Working Capital: 3.15 3.15 3.15 3.15 3.15 iii) Cash balance: 5.58 13.42 23.51 33.85 44.42 Total 28.42 34.10 42.03 50.21 58.62 Total Investment: 25.000 25.00 22.73 20.91 19.54 18.63 Return on Investment: 27.66 40.40 54.69 59.78 63.94 [100XNet profit/Total Investment] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-128]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 4.675 3.980 3.525 3.070 2.615 Other Operating Expenses 60% 1.416 1.515 1.621 1.735 1.856 Total 6.091 5.495 5.146 4.805 4.471 BEP [in % of target business] 34.923 29.455 25.596 24.570 23.534 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: 1. M/s. Narangs Corporation, P-25, Connaught Place, New Delhi – 110 001 2. M/s. Gee Gee (Food & Packaging) Co. (P) Ltd., B-188/2 Savitri Nagar, Malviya Nagar, New Delhi – 110 017 3. M/s. Assam Essence Supply & Co., Lalsing Mansion (2nd Floor), A.T. Road, Guwahati- 781 001 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-129]A] Introduction: Beaten rice popularly known as “Chira” in Tripura and other States in the north-eastern region is a staple breakfast diet of the rural population. It is a low cost wholesome food and has good nutritional value. Chira can be taken in different forms viz. raw, fried, with curd and therefore has mass appeal.B] Market Potential of the product: In the north-eastern region, Chira is popular mainly in Tripura, Assam and Maniur. Of the total estimated population of 385 lakhs in the north-eastern region about 80% i.e. 208 lakhs reside in rural areas. Of the total population of 32 lakh in Tripura about 25.6 lakh population rise in rural areas. Assuming an average per capita consumption of 2 Kg. the total demand for Chira is estimated at 5120 tonne per year. There are few units making chira and their production is not adequate to meet the demand of the local population. Bulk of the requirement of Chira is being met from Bihar and West Bengal. Considering the capacity of the typical tiny unit to be 240 tonne per year, there is scope for over 20 such units in Tripura.C] Target Production: An annual production of 240 tonne is suggested in the first year of operation(70%) on the following basis. Hourly hulling envisaged : 100 Kg. Working hours per day : 8 per shift Working days per year : 300 days Annual Production : 240 Tonnes Total Capacity : 343 Tonnes at 100% Capacity.D] Raw Materials: The only raw material required is paddy. Considering a yield of 60% from paddy to beaten rice, the annual requirement of paddy is estimated at 400 tonnes.E] Process: The main process steps are : • Soaking of paddy in water for 2 to 3 days. • Drying of soaked paddy in heated “Karahi” • Milling and shelling of dried paddy to rice flakes (chira) • Cleaning. Process Flow Chart: Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-130]F] Manpower Requirement: The unit will employ 7 Nos. of persons. 1 Manager 1 No. 2 Skilled Worker 4 No. 3 Unskilled Worker 2 No. Total 7G] Machineries & Equipments required: Machines/Equipments Amount Required (In Lakh Rs.) The machineries required are a 100 Kg/hr. Chira making machine, Boiler, Containers for boiling and roasting chira, Pans (Karahi), 5.15 Oven, Shelling machine, Trolleys, Weighing scale etc. are required. Total 5.15H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Required Workplace 1000 Sq. Ft. 2. Power 6 KW 3. Water 500 Ltrs / DayI] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent/Lease/own) 0.00 ii. Site Development: 0.60 iii. Building/Civil Works: 6.85 iv. Plant & Machineries: 5.15 v. Misc. Fixed Assets: 1.80 (Furnitures, Fixtures, electrification etc.) Total 14.40 vi. Preliminary & Pre-operative expenses: 1.00 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 15.40 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 3.00 ii. Finished goods [15 Days] 2.20 iii. Receivables [15 Days] 2.20 Total amount of Working Capital required 7.40 Total Fund Required for the Project: [1 + 2] Rs 22.80 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 15.96 13.68 ii. Subsidy entitled: 5.70 7.98 iii. Own contribution @ 5% of Project Cost: 1.14 1.14 Total 22.80 22.80J] Annual Sales Forecasting: @ 70% Capacity The prevailing market price for beaten rice (Chira) varies from Rs.22/- to Rs.25/- per kg. An ex-works price of rs.20/- per kg. has been considered. On this basis the annual sales realization for 240 tons of Chira is estimated to be Rs. 48.00 lakhs in the first year of operation. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-131]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 48.00 54.86 61.71 61.71 61.71 2 Less Cost of Materials: 36.00 41.14 46.29 46.29 46.29 3 Gross Profit (1-2): 12.00 13.71 15.43 15.43 15.43 4 Less other operating expenses: i) Rent for Land: 0.24 0.26 0.27 0.29 0.31 ii) Salary for staff: 2.50 2.68 2.86 3.06 3.28 iii) Electricity and maintainance: 0.36 0.39 0.41 0.44 0.47 iv) Office expenses (Stationary, Telephone etc.) 0.10 0.11 0.11 0.12 0.13 v) Advertising and Selling expenses: 0.50 0.54 0.57 0.61 0.66 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 3.80 4.07 4.35 4.66 4.98 5 Profit before Depriciation, Interest and Taxes(3-4): 8.20 9.65 11.08 10.77 10.45 6 Less Depriciation on Fixed Assets: 1.44 1.44 1.44 1.44 1.44 7 profit before interest and taxes (5-6): 6.76 8.21 9.64 9.33 9.01 8 Less Interest payable on loan: 2.07 1.66 1.24 0.83 0.41 9 Profit before taxes (7-8): 4.69 6.55 8.39 8.50 8.5910 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 4.69 6.55 8.39 8.50 8.59 Percentage of Profit on Sale: 9.76 11.94 13.60 13.78 13.9212 Provision for repayment of loan: 3.19 3.19 3.19 3.19 3.1913 Retained Profit (11-12): 1.49 3.36 5.20 5.31 5.4014 Net Cash Accruals 2.93 4.80 6.64 6.75 6.84 [Depreciation added back with retained profit]15 Cumulated Net profit: 4.69 11.23 19.63 28.13 36.72 Pay-Back Period: 39 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 15.96 12.77 9.58 6.38 3.19 Proposed Repayment during the year: 3.19 3.19 3.19 3.19 3.19 Refundable loan at the end of the year: 12.77 9.58 6.38 3.19 0.00 Total Debt-Service [Interest+Repayment]: 5.27 4.85 4.44 4.02 3.61 Fund Available for Debt-Service: 8.20 9.65 11.08 10.77 10.45 Debt-Service Coverage Ratio: 1.56 1.99 2.50 2.68 2.90 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-132]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 1.140 ii) Loan from Bank: 15.960 iii) Increase in Subsidy: 5.700 iv) Profit Before Interest and taxes: 6.760 8.208 9.638 9.333 9.008 v) Depreciation added back: 1.440 1.440 1.440 1.440 1.440 Total 31.000 9.648 11.078 10.773 10.448 b) Uses of Fund: i) Increase in Fixed Assets: 14.400 ii) Preliminary Expenses: 1.000 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 7.400 v) Decrease in Loan: 3.192 3.192 3.192 3.192 3.192 vi) Interest payable: 2.075 1.660 1.245 0.830 0.415 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 28.067 4.852 4.437 4.022 3.607 Opening Balance: 2.933 7.730 14.371 21.122 Surplus/Deficit Generated: 2.933 4.796 6.641 6.751 6.841 Closing Balance: 2.933 7.730 14.371 21.122 27.963N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.14 1.14 1.14 1.14 1.14 ii) Cumulated Net Profit: 4.69 11.23 19.63 28.13 36.72 Net Worth: 5.83 12.37 20.77 29.27 37.86 iii) Subsidy: 5.70 5.70 5.70 5.70 5.70 iv) Loan at Bank: 12.77 9.58 6.38 3.19 0.00 Total 24.29 27.65 32.85 38.16 43.56 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 15.40 13.96 12.52 11.08 9.64 Less depreciation on Fixed Assets: 1.44 1.44 1.44 1.44 1.44 i) Net Block: 13.96 12.52 11.08 9.64 8.20 ii) Working Capital: 7.40 7.40 7.40 7.40 7.40 iii) Cash balance: 2.93 7.73 14.37 21.12 27.96 Total 24.29 27.65 32.85 38.16 43.56 Total Investment: 22.800 22.80 20.73 19.07 17.82 16.99 Return on Investment: 20.55 31.60 44.02 47.72 50.57 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 3.755 3.100 2.685 2.270 1.855 Other Operating Expenses 60% 2.136 2.286 2.446 2.617 2.800 Total 5.891 5.385 5.130 4.887 4.655 BEP [in % of target business] 41.806 35.822 31.653 31.204 30.822 [100xFC/(FC+Net profit)] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-133]P] Machinery & Equipment Suppliers: 1. M/s. Gardener’s Corporation, 6, Doctor’s Lane, New Delhi – 110 001 2. M/s. B. Sen Barry, 65/11, Rohtak Road, New Delhi – 110 005 3. M/s. Batliboi & co.(P) Ltd., Fort, Mumbai – 400 001 4. M/s. Raylons Metal Works, Ramkrishna Mandir Road, J.B. Nagar, Mumbai – 400 059 5. M/s. Hindustan Engineering Co., Aban House, Rampart Row, Fort, Mumbai – 400 023 6. M/s. archana Machinery, A.T. Road, Guwahati Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-134]A] Introduction: Fresh drinking water refers to pure water which is free from any bacteria, microbes, chemicals and thus odorless, colorless crystal clear water is packaged in a sterilized pet bottle with a sealed cap. This water can be carried to any place and it remains fresh and pure up to 2 to 3 months. This water is also known as mineral water. Moreover, awareness about the benefit of drinking pure, safe water has also necessitated the availability of packaged drinking water.B] Market Potential of the product: At present there are more than 100 manufacturing units filling mineral water in the country at various places with different brand names and variety of packaging viz. half/one/two liters plastic bottles, polystyrene tumblers, sachets as well as bulk packaging in refillable polycarbonate bottles of sizes of 20- 25 liters.. In the North Eastern region including in Tripura also, there are many mineral water bottling and filling units. The major products of mineral water such as Bislery, Bailley, Golden Egle, Aquafina etc. are sold in every nook and corner of even small towns because of well organized sales network. It is observed that with the two fold increase in demand of mineral water – one due to growth in tourists in flow and the other due to increased health consciousness and purchasing power of local population few, the production has not been increasing at that rapid pace as widens the demand & supply gap. Therefore, there still exist good scopes for new units producing bottled drinking water in the matter.C] Plant Capacity: An annual production of 6.,00,000 Nos. of bottles of packaged drinking water at 100% capacity utilization has been suggested on the following basis – No. of shift per day : 1 Daily production : 2000 bottles Working days/year : 300 days Annual production : 6,00,000 bottles.D] Raw Materials: For producing 6,00,000 bottles of mineral water per annum at 100% capacity utilization, the raw materials cum packing materials required is furnished below : Sl. Items Qty. / Nos. Price in Rs. Total cost/ No. Per unit. Annum (Rs.in lakh) 1. Pet bottles with cap 1 Ltr. Capacity. 4,00,000 3.50 14.00 2. Pet bottles with cap 500 ml. Capacity. 2,50,000 3.00 7.50 3. Card board 66,700 15.50 10.33 Box 33,400 16.50 5.50 Total : 37.33 The project site should have good reservoir of underground water and the same may be tested to ascertain the suitability of making it into potable water. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-135]E] Process: The main process steps are - Water purification * Pre-treatment * Removal of BOD/COD. * Coarse filtration * Decolouring, deodorisation and removal of residual chlorines. * Softening * Fine filtration * Desalination * Final sterilization at filling point. Bottle filling, capping and packing. Process Flow Chart:F] Manpower Requirement: The unit will employ 10 Nos. of persons. 1 Manager 1 No. 2 Accountant 1 No. 3 Skilled Worker 3 No. 4 Unskilled Worker 4 No. 5 Chowkidar 1 No. Total 10G] Machineries & Equipments required: Sl. Description Qty. Amount Required (In Lakh Rs.) No. 1. R.D.System for preparation of drinking water 1 set 2. 2(Two) Head bottle filling machine 2 Nos. (Gravitational) 3. Single Head capping machine. 1 No. 17 4. Shrink Warp Funner for Labeling. 1 No. 5. Purified water storage stainless steel tanks, - 1500 Ltrs. Capacity, laboratory equipment etc. Total 17 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-136]H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Land & Building 2500 Sq. Ft. 2. Factory 800 Sq. Ft. 3. Power 15 KW 4. Water 5000 Ltrs / DayI] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (own) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 2.75 iv. Plant & Machineries: 17.00 v. Misc. Fixed Assets: 0.60 (Furnitures, Fixtures, electrification etc.) Total 20.35 vi. Preliminary & Pre-operative expenses: 0.50 vii. Margin for Working Capital Not required 0.00 Total amount of Fixed Capital required 20.85 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [15 Days] 2.00 ii. Finished goods [7 Days] 0.80 iii. Receivables [7 Days] 1.00 Total amount of Working Capital required 3.80 Total Fund Required for the Project: [1 + 2] Rs 24.65 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 17.26 14.79 ii. Subsidy entitled: 6.16 8.63 iii. Own contribution @ 5% of Project Cost: 1.23 1.23 Total 24.65 24.65J] Annual Sales Forecasting: @ 70% Capacity The prevailing market price is around Rs.15 to Rs. 16 per ltr. After a margin for retailers and distributors, the ex-factory price works out to between Rs 12/- to Rs.13/- per Kg. Against this, a conservative price of Rs.11/- per Ltr. is considered. Accordingly, the annual sales realization at 70% capacity utilization is estimated at Rs. 66.00 lakhs. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-137]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 66.00 75.43 84.86 84.86 84.86 2 Less Cost of Materials: 48.00 54.86 61.71 61.71 61.71 3 Gross Profit (1-2): 18.00 20.57 23.14 23.14 23.14 4 Less other operating expenses: i) Rent for Land: 0.00 0.00 0.00 0.00 0.00 ii) Salary for staff: 6.00 6.42 6.87 7.35 7.86 iii) Electricity and maintainance: 0.36 0.39 0.41 0.44 0.47 iv) Office expenses (Stationary, Telephone etc.) 0.10 0.11 0.11 0.12 0.13 v) Advertising and Selling expenses: 0.50 0.54 0.57 0.61 0.66 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 7.06 7.55 8.08 8.65 9.25 5 Profit before Depriciation, Interest and Taxes(3-4): 10.94 13.02 15.06 14.49 13.89 6 Less Depriciation on Fixed Assets: 2.04 2.04 2.04 2.04 2.04 7 profit before interest and taxes (5-6): 8.91 10.98 13.02 12.46 11.85 8 Less Interest payable on loan: 2.24 1.79 1.35 0.90 0.45 9 Profit before taxes (7-8): 6.66 9.19 11.68 11.56 11.4110 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 6.66 9.19 11.68 11.56 11.41 Percentage of Profit on Sale: 10.09 12.18 13.76 13.63 13.4412 Provision for repayment of loan: 3.45 3.45 3.45 3.45 3.4513 Retained Profit (11-12): 3.21 5.74 8.23 8.11 7.9514 Net Cash Accruals 5.25 7.77 10.26 10.15 9.99 [Depreciation added back with retained profit]15 Cumulated Net profit: 6.66 15.85 27.53 39.09 50.50 Pay-Back Period: 32 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 17.26 13.80 10.35 6.90 3.45 Proposed Repayment during the year: 3.45 3.45 3.45 3.45 3.45 Refundable loan at the end of the year: 13.80 10.35 6.90 3.45 0.00 Total Debt-Service [Interest+Repayment]: 5.69 5.25 4.80 4.35 3.90 Fund Available for Debt-Service: 10.94 13.02 15.06 14.49 13.89 Debt-Service Coverage Ratio: 1.92 2.48 3.14 3.33 3.56 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-138]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 1.233 ii) Loan from Bank: 17.255 iii) Increase in Subsidy: 6.163 iv) Profit Before Interest and taxes: 8.905 10.982 13.025 12.459 11.854 v) Depreciation added back: 2.035 2.035 2.035 2.035 2.035 Total 35.590 13.017 15.060 14.494 13.889 b) Uses of Fund: i) Increase in Fixed Assets: 20.350 ii) Preliminary Expenses: 0.500 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 3.800 v) Decrease in Loan: 3.451 3.451 3.451 3.451 3.451 vi) Interest payable: 2.243 1.795 1.346 0.897 0.449 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 30.344 5.246 4.797 4.348 3.900 Opening Balance: 5.246 13.018 23.281 33.426 Surplus/Deficit Generated: 5.246 7.772 10.263 10.146 9.989 Closing Balance: 5.246 13.018 23.281 33.426 43.415N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.23 1.23 1.23 1.23 1.23 ii) Cumulated Net Profit: 6.66 15.85 27.53 39.09 50.50 Net Worth: 7.89 17.08 28.76 40.32 51.73 iii) Subsidy: 6.16 6.16 6.16 6.16 6.16 iv) Loan at Bank: 13.80 10.35 6.90 3.45 0.00 Total 27.86 33.60 41.83 49.94 57.89 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 20.85 18.82 16.78 14.75 12.71 Less depreciation on Fixed Assets: 2.04 2.04 2.04 2.04 2.04 i) Net Block: 18.82 16.78 14.75 12.71 10.68 ii) Working Capital: 3.80 3.80 3.80 3.80 3.80 iii) Cash balance: 5.25 13.02 23.28 33.43 43.42 Total 27.86 33.60 41.83 49.94 57.89 Total Investment: 24.650 24.65 22.41 20.61 19.27 18.37 Return on Investment: 27.03 41.00 56.66 60.01 62.09 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 4.278 3.830 3.381 2.932 2.484 Other Operating Expenses 60% 4.236 4.533 4.850 5.189 5.553 Total 8.514 8.362 8.231 8.122 8.036 BEP [in % of target business] 43.765 39.113 35.339 35.911 36.653 [100xFC/(FC+Net profit)] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-139]P] Machinery & Equipment Suppliers: Sonalifabs, Rital Agencies. 71, Biren Roy Road (West), 55 III Main Road, Gandhi Nagar, Kolkata – 700 061. Chennai – 600 020. Enviro Tech Utility, Ion Exchange India Ltd., 32 A, Main Patel Nagar Road, Ticcon House. Opposite Wings Show Room, Dr. E.Houses Road, West Patel Nagar, Mahalaxmi, New Delhi – 110 008. Mumbai – 400 011. Watrion Water and Filter Engg.Pvt.Ltd., Alpha Engineering, 1, Harsivan Apartment, Ground Floor, 158, Pocket E-20, Sector-II, (Behind Canara Bank) Rohini, West J.P.Road, Andheri(West), Delhi – 110 085. P.B.No. 7372 Mumbai – 400 059. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-140]A] Introduction: Cheese is the product made from the curd obtained from whole or skimmed milk, with or without added cream, by coagulating the casein and further treatment, of the separated curd by ripening ferments, special molds or seasoning. Preparations of different types of paneer such as Surti Paneer, Bandal and Ducca Cheese, which are popular in certain parts of the country are allied to cheese. Processed cheese is generally prepared from natural cheese having different varieties with different moisture content. Cheese has very good market potential. BIS (1964) IS:2785, is the ISI Specification for hard cheese, processed cheese and processed cheese spread.B] Market Potential of the product: Milk is one of the essential items of daily life in our country and it is more so, as a majority of Indians are vegetarian and thus milk and milk products are indispensable necessity. The per capita consumption of milk products is about 190 gms. Per day at present. There is a likelihood of growing this demand manifold and to achieve this goal, there is a need to make available milk and milk products to the people at reasonable price, which can only be attained by setting up small scale modern dairy units in different mild producing areas to cater to the local needs. The development of this important agro-based industry will help in generating employment opportunities in the milk producing areas of Tripura as well as in the consuming centers through well-knit market channels in the state of Tripura.C] Plant Capacity: A capacity of processing 60.00 tonnes whole milk per annum and annual output of 44.40 tonnes of processed cheese and 15.00 tonnes of cream in the first year of operation on the following basis: Processing capacity per day : 200 Ltrs. Whole Milk Processed cheese per day (74%) : 148 Kg. Cream per day (25%) : 50 Kg. No.of working days/annum : 300 days No. of shift/day: 1 shift of 8 hoursD] Raw Materials: The milk is selected as desired under the heading of milk for cheese. Raw milk containing the fat is taken and poured into the cream separator. The cream present in the milk is separated out. After the cream is separated the milk becomes skim and their skim milk is ready for cheese making. For annual production of 45 tons of processed cheese, 60.00 tons of skim milk is required. In addition to this starter i.e. enzymes, flavours, colours, salt etc. is also required which is about 6.6 tons. Packing materials for packing the cheese and cream will be required. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-141]E] Process: This type of cheese (paneer) is generally made of skim milk. The milk for best result should be pasteurized. The process may be divided into following steps. a) Selection of milk and cream separator b) Setting of milk c) Cutting or breaking of curd d) Cooking curds. e) Draining or dipping f) Curd knitting g) Salting h) Pressing i) Conversion of natural cheese into processed cheeseF] Manpower Requirement: The unit will employ 8 Nos. of persons. 1 Administrative Staffs 3 No. 2 Factory Staffs 5 No. Total 8G] Machineries & Equipments required: 1) Cheese Vat (Jacketed) (S.S) Cap:2000 lits. Amount Required (In Lakh Rs.) 2) Cheese Vat (Jacketed) (S.S) Cap:250 lits. 3) Cream separator Cap:1000-2000 lit/h of milk with 5 HP motor with agitator chamber is made of (S.S) 4) Milk Cans (Aluminium alloy) 40 lits, 20 lits 5) Cheese cutting table (S.S) (2m x 2m) 6) Cheese knives 3/8” or ½” (vertical and horizontal both) 7) Cheese Hoops Cap: 25 Kgs. 8) Cheese Press Hydraulic vertical 9) Cheese Grinder (S.S) Cap: 100 Kgs/hr. 10) Ghee kettle (S.S) cap:100 Kgs./hr. 11) Weighing balance platform type cap:500 Kgs.max. 15.5 12) Weighing balance, weights 10 Kgs. 13) Deep freezer large vertical, multidoor 14) S.S. Pump 15) Bulk cooler Cap:2000 lits 16) Plastic Vats Cap:500 lits each 17) Centrifuge for fat test (both electrically/manually tested) 18) Boiler (oil fired) 500 Kgs. Steam/hr. 19) Cheese filling and packaging M/c. automatic type 20) Processed cheese kettle (S.S. Jacketed type) Cap: 20 Kg. per hr. 21) Pipe fittings, Pumps, valves and other Total 15.5H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Land & Building 3500 Sq. Ft. 2. Power 13 KW 4. Water 40000 Ltrs / Day Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-142]I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (own) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 0.00 iv. Plant & Machineries: 15.50 v. Misc. Fixed Assets: 4.00 (Furnitures, Fixtures, electrification etc.) Total 19.50 vi. Preliminary & Pre-operative expenses: 1.00 vii. Margin for Working Capital @25 % 0.90 Total amount of Fixed Capital required 21.40 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [15 Days] 1.10 ii. Finished goods [7 Days] 1.00 iii. Receivables [7 Days] 1.50 Total amount of Working Capital required 3.60 Total Fund Required for the Project: [1 + 2] Rs 25.00 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 17.50 15.00 ii. Subsidy entitled: 6.25 8.75 iii. Own contribution @ 5% of Project Cost: 1.25 1.25 Total 25.00 25.00J] Annual Sales Forecasting: @ 70% Capacity Based on the present market prices and after providing for taxes and duties etc. selling prices assumed and annual sales realization at 70% capacity utilizarion are as below: Item Quantity tonne Price Rs/tonne Sales realization (Rs. Lakhs/year) Cheese 44.40 1,25,000 55.50 Cream 15.00 70,000 10.50 Total Rs. 66.00 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-143]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 66.00 75.43 84.86 84.86 84.86 2 Less Cost of Materials: 26.40 30.17 33.94 33.94 33.94 3 Gross Profit (1-2): 39.60 45.26 50.91 50.91 50.91 4 Less other operating expenses: i) Rent for Land: 0.00 0.00 0.00 0.00 0.00 ii) Salary for staff: 10.00 10.70 11.45 12.25 13.11 iii) Electricity and maintainance: 0.60 0.64 0.69 0.74 0.79 iv) Office expenses (Stationary, Telephone etc.) 0.50 0.54 0.57 0.61 0.66 v) Advertising and Selling expenses: 4.00 4.28 4.58 4.90 5.24 vi) Insurance and other misc. expenses: 0.25 0.27 0.29 0.31 0.33 Total of Sl. 4. 15.35 16.42 17.57 18.80 20.12 5 Profit before Depriciation, Interest and Taxes(3-4): 24.25 28.83 33.34 32.11 30.79 6 Less Depriciation on Fixed Assets: 1.95 1.95 1.95 1.95 1.95 7 profit before interest and taxes (5-6): 22.30 26.88 31.39 30.16 28.84 8 Less Interest payable on loan: 2.28 1.82 1.37 0.91 0.46 9 Profit before taxes (7-8): 20.03 25.06 30.03 29.25 28.3910 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 20.03 25.06 30.03 29.25 28.39 Percentage of Profit on Sale: 30.34 33.23 35.38 34.47 33.4512 Provision for repayment of loan: 3.50 3.50 3.50 3.50 3.5013 Retained Profit (11-12): 16.53 21.56 26.53 25.75 24.8914 Net Cash Accruals 18.48 23.51 28.48 27.70 26.84 [Depreciation added back with retained profit]15 Cumulated Net profit: 20.03 45.09 75.11 104.36 132.75 Pay-Back Period: 13 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 17.50 14.00 10.50 7.00 3.50 Proposed Repayment during the year: 3.50 3.50 3.50 3.50 3.50 Refundable loan at the end of the year: 14.00 10.50 7.00 3.50 0.00 Total Debt-Service [Interest+Repayment]: 5.78 5.32 4.87 4.41 3.96 Fund Available for Debt-Service: 24.25 28.83 33.34 32.11 30.79 Debt-Service Coverage Ratio: 4.20 5.42 6.85 7.28 7.79 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-144]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 1.250 ii) Loan from Bank: 17.500 iii) Increase in Subsidy: 6.250 iv) Profit Before Interest and taxes: 22.300 26.883 31.390 30.160 28.844 v) Depreciation added back: 1.950 1.950 1.950 1.950 1.950 Total 49.250 28.833 33.340 32.110 30.794 b) Uses of Fund: i) Increase in Fixed Assets: 19.500 ii) Preliminary Expenses: 1.000 iii) Margin for Working Capital 0.900 iv) Increase in Working Capital: 3.600 v) Decrease in Loan: 3.500 3.500 3.500 3.500 3.500 vi) Interest payable: 2.275 1.820 1.365 0.910 0.455 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 30.775 5.320 4.865 4.410 3.955 Opening Balance: 18.475 41.988 70.463 98.163 Surplus/Deficit Generated: 18.475 23.513 28.475 27.700 26.839 Closing Balance: 18.475 41.988 70.463 98.163 125.001N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.25 1.25 1.25 1.25 1.25 ii) Cumulated Net Profit: 20.03 45.09 75.11 104.36 132.75 Net Worth: 21.28 46.34 76.36 105.61 134.00 iii) Subsidy: 6.25 6.25 6.25 6.25 6.25 iv) Loan at Bank: 14.00 10.50 7.00 3.50 0.00 Total 41.53 63.09 89.61 115.36 140.25 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 21.40 19.45 17.50 15.55 13.60 Less depreciation on Fixed Assets: 1.95 1.95 1.95 1.95 1.95 i) Net Block: 19.45 17.50 15.55 13.60 11.65 ii) Working Capital: 3.60 3.60 3.60 3.60 3.60 iii) Cash balance: 18.48 41.99 70.46 98.16 125.00 Total 41.53 63.09 89.61 115.36 140.25 Total Investment: 25.000 25.00 22.73 20.91 19.54 18.63 Return on Investment: 80.10 110.29 143.63 149.69 152.38 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 4.225 3.770 3.315 2.860 2.405 Other Operating Expenses 60% 9.210 9.855 10.545 11.283 12.072 Total 13.435 13.625 13.860 14.143 14.477 BEP [in % of target business] 35.651 32.090 29.364 30.577 31.979 [100xFC/(FC+Net profit)] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-145]P] Machinery & Equipment Suppliers: 1. Filtron Engineers Ltd. 2. Redson Engrs. Pvt. Ltd. 117-A, withalwadi Road, F-9/B, 1st phase Pune-411 030 Hyderabad-500 055 Fax: 477913 Tel: 895262, 263585 Fax: 896236 3. Raylons Metal Works J.B. Nagar, Ram Krishna Mandir Road Andheri(W) Mumbai-400 059 Tel:8323288, 8325932 Fax:6236062 SUPPLIERS OF RAW MATERIAL DISODIUM CITRATE 1. M/s. Citrugia Biochemical Ltd.,2 2. Ms/. Delhi Drugs(P) Ltd. Neville House J.N. Munshi Niketan Heredia Marg, Ballard Estate 1/10-B, Asaf Ali Road Mumbai-400038 New Delhi-110 002 3. Ms/. Iris Laboratories (India) Plot No. 379, Phase-II GIDC Vatva Ahmedabad-382445 DISODIUM PHOSPHATE 1. M/s. Allipo chemicals 2. M/s. Chemeo Fine Chemicals 219, DIDC Makarpura Neelkanth Vihar Baroda-390 010 B-14, 4th Floor Plot No. 28-29 Garodia Nagar Ghatkopar Mumbai-400 077 RENNET ENZYEME 1. M/s. Arun & Co. 3. M/s. Deptt. of Biotechnology 2C, Kitab Mahal, 1st Floor 7-8 Floor, Block-2 102, Dr. D.N. Road CGO, Complex, Lodhi Road Mumbai-400 001 New Delhi-3 Phone:2044026, 2047224,2047028 2. M/s. National Dairy Research Institute Karnal-132 001 Haryana Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-146]A] Introduction: Supari is the dehydrated betel nut sliced for direct consumption. It is used as mouth freshener after food. It is a typical Indian product popular with both young and old. Betel nuts are abundantly found in the N.E. Region and are extensively used. Conversion of betel nut to supari confers substantial value addition to the extent of 80% of the cost.B] Market Potential of the product: The raw material for supari i.e. betel nut is abundantly available in the N.E. Region specially in Tripura. The habit of chewing up supari with pan is popular practice in the region. The demand for supari as ever increasing. It is labour intensive with low or no technology input. Hence, a few units can come up in the State.C] Plant Capacity: Production per day : 100 kg. scented supari Working days/year : 300 Annual production : 30 Tons.at 70% Capacity Utilization. Manpower 8 Nos.(1 Administrative staff and 7 Factory workers).D] Process: The major process steps are: i) Boiling of raw nut ii) Open sun drying for 2 to 3 days iii) Peeling of semi dried nut iv) Further drying for 10 to 15 days v) Slicing of dried supari vi) Application of essence in required quantity vii) Packing in pouches. Process Flow Chart: Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-147]G] Machineries & Equipments required: Amount Required (In Lakh Rs.) i) Karahi/Pan ii) Slicer/Daos iii) Bamboo Mat iv) Bamboo Baskets 1.1 v) Plastic Sheets/Tarpaulins vi) Accessories Total 1.1H] Requirement of Infrastructure: The major infrastructure requirements are – 1. Covered Area 1000 Sq. mtr. 2. Power 1 KW 4. Water 500 Ltrs / DayI] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (own) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: 2.40 iv. Plant & Machineries: 1.10 v. Misc. Fixed Assets: 1.50 (Furnitures, Fixtures, electrification etc.) Total 5.00 vi. Preliminary & Pre-operative expenses: 1.80 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 6.80 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 2.50 ii. Finished goods [1 Month] 2.40 iii. Receivables [15 Days] 2.00 Total amount of Working Capital required 6.90 Total Fund Required for the Project: [1 + 2] Rs 13.70 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 9.59 8.22 ii. Subsidy entitled: 3.43 4.80 iii. Own contribution @ 5% of Project Cost: 0.69 0.69 Total 13.70 13.70J] Annual Sales Forecasting: @ 70% Capacity The following is the basis for calculation of income receipt in the first year (70%) of operation. Sl.No. Product Qty.(MT) Rate(Rs.) Value(Rs.in lakhs) 1. Supari 30 MT 130000/Ton 39.00 Total: 39.00 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-148]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 39.00 44.57 50.14 50.14 50.14 2 Less Cost of Materials: 30.00 34.29 38.57 38.57 38.57 3 Gross Profit (1-2): 9.00 10.29 11.57 11.57 11.57 4 Less other operating expenses: i) Rent for Land: 0.00 0.00 0.00 0.00 0.00 ii) Salary for staff: 1.50 1.61 1.72 1.84 1.97 iii) Electricity and maintainance: 0.25 0.27 0.29 0.31 0.33 iv) Office expenses (Stationary, Telephone etc.) 0.10 0.11 0.11 0.12 0.13 v) Advertising and Selling expenses: 0.50 0.54 0.57 0.61 0.66 vi) Insurance and other misc. expenses: 0.10 0.11 0.11 0.12 0.13 Total of Sl. 4. 2.45 2.62 2.81 3.00 3.21 5 Profit before Depriciation, Interest and Taxes(3-4): 6.55 7.66 8.77 8.57 8.36 6 Less Depriciation on Fixed Assets: 0.50 0.50 0.50 0.50 0.50 7 profit before interest and taxes (5-6): 6.05 7.16 8.27 8.07 7.86 8 Less Interest payable on loan: 1.25 1.00 0.75 0.50 0.25 9 Profit before taxes (7-8): 4.80 6.17 7.52 7.57 7.6110 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 4.80 6.17 7.52 7.57 7.61 Percentage of Profit on Sale: 12.32 13.84 14.99 15.10 15.1812 Provision for repayment of loan: 1.92 1.92 1.92 1.92 1.9213 Retained Profit (11-12): 2.89 4.25 5.60 5.65 5.6914 Net Cash Accruals 3.39 4.75 6.10 6.15 6.19 [Depreciation added back with retained profit]15 Cumulated Net profit: 4.80 10.97 18.49 26.06 33.67 Pay-Back Period: 27 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 9.59 7.67 5.75 3.84 1.92 Proposed Repayment during the year: 1.92 1.92 1.92 1.92 1.92 Refundable loan at the end of the year: 7.67 5.75 3.84 1.92 0.00 Total Debt-Service [Interest+Repayment]: 3.16 2.92 2.67 2.42 2.17 Fund Available for Debt-Service: 6.55 7.66 8.77 8.57 8.36 Debt-Service Coverage Ratio: 2.07 2.63 3.29 3.55 3.86 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-149]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.685 ii) Loan from Bank: 9.590 iii) Increase in Subsidy: 3.425 iv) Profit Before Interest and taxes: 6.050 7.164 8.266 8.070 7.860 v) Depreciation added back: 0.500 0.500 0.500 0.500 0.500 Total 20.250 7.664 8.766 8.570 8.360 b) Uses of Fund: i) Increase in Fixed Assets: 5.000 ii) Preliminary Expenses: 1.800 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 6.900 v) Decrease in Loan: 1.918 1.918 1.918 1.918 1.918 vi) Interest payable: 1.247 0.997 0.748 0.499 0.249 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 16.865 2.915 2.666 2.417 2.167 Opening Balance: 3.385 8.134 14.235 20.388 Surplus/Deficit Generated: 3.385 4.749 6.100 6.153 6.193 Closing Balance: 3.385 8.134 14.235 20.388 26.581N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.69 0.69 0.69 0.69 0.69 ii) Cumulated Net Profit: 4.80 10.97 18.49 26.06 33.67 Net Worth: 5.49 11.66 19.17 26.74 34.36 iii) Subsidy: 3.43 3.43 3.43 3.43 3.43 iv) Loan at Bank: 7.67 5.75 3.84 1.92 0.00 Total 16.59 20.83 26.43 32.09 37.78 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 6.80 6.30 5.80 5.30 4.80 Less depreciation on Fixed Assets: 0.50 0.50 0.50 0.50 0.50 i) Net Block: 6.30 5.80 5.30 4.80 4.30 ii) Working Capital: 6.90 6.90 6.90 6.90 6.90 iii) Cash balance: 3.39 8.13 14.23 20.39 26.58 Total 16.59 20.83 26.43 32.09 37.78 Total Investment: 13.700 13.70 12.45 11.46 10.71 10.21 Return on Investment: 35.06 49.52 65.63 70.71 74.55 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 1.747 1.497 1.248 0.999 0.749 Other Operating Expenses 60% 1.470 1.573 1.683 1.801 1.927 Total 3.217 3.070 2.931 2.799 2.676 BEP [in % of target business] 32.935 28.602 25.057 24.623 24.249 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: Equipments are available in the local market. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-150]A] Introduction: India is the largest producer of pulses producing 14.5 million tones annually. Pulses commonly known as dal in India are an important component of both the vegetarian as well as the non-vegetarian diet in India. Among the North Eastern States, Tripura has a production record of 4980 MT of pulses during 2001-2002. Pulses constitute one of the main sources of protein in the Indian diet. There are different varieties of pulses namely Chana, Mung, Masur, Urad and Tuvar dal. Of these, Mung and Masur dal are predominantly consumed in the North Eastern States including Tripura. The conversion of pulse grains into dal is through the process of milling. Wherein dal is split into smaller sizes rendering it convenient scale sector, some quantity is also processed in the rural sector manually producing inferior quality dal resulting in lesser revenue earning compared to milled dal.B] Market Potential of the product: The all India per capita consumption of pulses is about 2.8 kg per year. In the North Eastern Region, consumption of pulses is generally higher especially in States like Tripura, Assam and Manipur, Conservatively, taking the national consumption norm of 2.8 kg and considering the total population of 32 lakhs in Tripura, the demand for pulses is estimated at 8960 tonne per year. There is no organized dal milling activity in the state of Tripura. In rural areas, sometimes dal milling is carried out in rice hullers. The total production of pulses in Tripura is about 15,000 tonne per year. Assuming that 80% of this quantity is available for dal milling, that the new tiny units process 40% of the available dal, there is scope for at least 3 units with annual milling capacity of 500 tonne of dal to be set up.C] Plant Capacity: A typical dal milling unt is envisaged to produce 250 MT per annum on the following basis: Production Capacity : 100 kg/hr. Number of Shifts : 1 Daily Production Capacity : 1.60 tonne Working days per annum : 300 Annual Production : 250 Loss during Dehusking : 6% Net Production : 235 tonne/at 70% capacity Utilization.D] Raw Material & its avilability: More than 80% of the total production of pulses in the North Eastern Region comes from Assam. Pulses are grown in more or less all the North Eastern States. The state-wise production of pulses is as under: State Tonne/Year Arunachal Pradesh 5000 Assam 60000 Meghalaya 2000 Nagaland 7000 Tripura 5000 Mizoram 6000 Total 85000 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-151]E] Process: The important steps involved in the process are- 1. Cleaning 2. Milling 3. Dehusking and Cleaning 4. Weighing and Packing Process Flow Chart:F] Machineries & Equipments required: Amount Required (In Lakh Rs.) 1. Automatic Dal Mill Plant with 25 HP Motor 1 No. 2. Weighing Scales 2 Nos. 3.15 3. Storage Equipments 5 Nos. Total 3.15G] Requirement of Infrastructure: The major infrastructure requirements are – 1. Covered Area 750 Sq. mtr. 2. Power 25 KW 4. Water MinimalH] Manpower Requirement: The unit will employ 7 Nos. of persons. 1 Manager 1 No. 2 Skilled Worker 4 No. 3 Helper 2 No. Total 7 No.I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (own) 0.00 ii. Site Development: 0.60 iii. Building/Civil Works: 6.00 iv. Plant & Machineries: 3.15 v. Misc. Fixed Assets: 0.60 (Furnitures, Fixtures, electrification etc.) Total 10.35 vi. Preliminary & Pre-operative expenses: 0.50 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 10.85 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-152] 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [7 Days] 4.00 ii. Finished goods [7 Days] 4.00 iii. Receivables [7 Days] 4.00 Total amount of Working Capital required 12.00 Total Fund Required for the Project: [1 + 2] Rs 22.85 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 16.00 13.71 ii. Subsidy entitled: 5.71 8.00 iii. Own contribution @ 5% of Project Cost: 1.14 1.14 Total 22.85 22.85J] Annual Sales Forecasting: @ 70% Capacity The cost of various types of pulses varies from Rs. 75/- to Rs. 100/- Kg, so an average of Rs. 85,000 per tone is taken into consideration. The annual sales revenue for 220 tons is estimated at Rs. 187.00 lakhs.K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 187.00 213.71 240.43 240.43 240.43 2 Less Cost of Materials: 171.43 195.92 220.41 220.41 220.41 3 Gross Profit (1-2): 15.57 17.80 20.02 20.02 20.02 4 Less other operating expenses: i) Rent for Land: 0.00 0.00 0.00 0.00 0.00 ii) Salary for staff: 2.00 2.14 2.29 2.45 2.62 iii) Electricity and maintainance: 1.20 1.28 1.37 1.47 1.57 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 2.00 2.14 2.29 2.45 2.62 vi) Insurance and other misc. expenses: 0.30 0.32 0.34 0.37 0.39 Total of Sl. 4. 5.70 6.10 6.53 6.98 7.47 5 Profit before Depriciation, Interest and Taxes(3-4): 9.87 11.70 13.49 13.04 12.55 6 Less Depriciation on Fixed Assets: 1.04 1.04 1.04 1.04 1.04 7 profit before interest and taxes (5-6): 8.84 10.66 12.46 12.00 11.51 8 Less Interest payable on loan: 2.08 1.66 1.25 0.83 0.42 9 Profit before taxes (7-8): 6.76 9.00 11.21 11.17 11.1010 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 6.76 9.00 11.21 11.17 11.10 Percentage of Profit on Sale: 3.61 4.21 4.66 4.65 4.6212 Provision for repayment of loan: 3.20 3.20 3.20 3.20 3.2013 Retained Profit (11-12): 3.56 5.80 8.01 7.97 7.9014 Net Cash Accruals 4.59 6.83 9.05 9.01 8.93 [Depreciation added back with retained profit]15 Cumulated Net profit: 6.76 15.76 26.97 38.14 49.24 Pay-Back Period: 31 Months Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-153]L] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 16.00 12.80 9.60 6.40 3.20 Proposed Repayment during the year: 3.20 3.20 3.20 3.20 3.20 Refundable loan at the end of the year: 12.80 9.60 6.40 3.20 0.00 Total Debt-Service [Interest+Repayment]: 5.28 4.86 4.45 4.03 3.61 Fund Available for Debt-Service: 9.87 11.70 13.49 13.04 12.55 Debt-Service Coverage Ratio: 1.87 2.41 3.03 3.23 3.47M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 1.143 ii) Loan from Bank: 15.995 iii) Increase in Subsidy: 5.713 iv) Profit Before Interest and taxes: 8.836 10.662 12.459 12.003 11.514 v) Depreciation added back: 1.035 1.035 1.035 1.035 1.035 Total 32.721 11.697 13.494 13.038 12.549 b) Uses of Fund: i) Increase in Fixed Assets: 10.350 ii) Preliminary Expenses: 0.500 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 12.000 v) Decrease in Loan: 3.199 3.199 3.199 3.199 3.199 vi) Interest payable: 2.079 1.663 1.248 0.832 0.416 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 28.128 4.862 4.447 4.031 3.615 Opening Balance: 4.593 11.428 20.475 29.482 Surplus/Deficit Generated: 4.593 6.834 9.048 9.007 8.934 Closing Balance: 4.593 11.428 20.475 29.482 38.416N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 1.14 1.14 1.14 1.14 1.14 ii) Cumulated Net Profit: 6.76 15.76 26.97 38.14 49.24 Net Worth: 7.90 16.90 28.11 39.28 50.38 iii) Subsidy: 5.71 5.71 5.71 5.71 5.71 iv) Loan at Bank: 12.80 9.60 6.40 3.20 0.00 Total 26.41 32.21 40.22 48.19 56.09 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 10.85 9.82 8.78 7.75 6.71 Less depreciation on Fixed Assets: 1.04 1.04 1.04 1.04 1.04 i) Net Block: 9.82 8.78 7.75 6.71 5.68 ii) Working Capital: 12.00 12.00 12.00 12.00 12.00 iii) Cash balance: 4.59 11.43 20.48 29.48 38.42 Total 26.41 32.21 40.22 48.19 56.09 Total Investment: 22.850 22.85 20.77 19.11 17.86 17.03 Return on Investment: 29.57 43.32 58.68 62.55 65.18 [100XNet profit/Total Investment] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-154]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 3.114 2.698 2.283 1.867 1.451 Other Operating Expenses 60% 3.420 3.659 3.916 4.190 4.483 Total 6.534 6.358 6.198 6.056 5.934 BEP [in % of target business] 39.830 35.214 31.475 31.719 32.105 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: 1. M/s. Archana Machinery Stores A.T. Road, Guwahati 2. M/s. DIW Hindustan Industrial Works Post Box No. 12, Dahanu Road Dist: Thane (Maharashtra) Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-155]A] Introduction: The climate in the north-east is favourable for pineapple cultivation and this region accounts for the bulk of pineapple production in the country. Pineapple is a versatile fruit and a number of marketable products such as pineapple squash, slices, fits, rings, jam and juice can be made. The potential available in the north-eastern region especially in Tripura is not being fully exploited at present.B] Market Potential of the product: The total production of processed fruits in the country is about 4.5 lakh tonne. Of this, the share of the north-eastern region is only about 5500 which is insignificant (about 1.2%) considering the large availability of fruits. The total availability of pineapples in the region is about 3,20,000 tonne per year. If 25% of this availability were to be processed into value added pineapple products, there would be a potential to produce about 80,000 tonne of processed pineapple valued at Rs. 600 crore per year which could considerably boost the economy of the region as also the State of Tripura. Considering the capacity of a tiny pineapple unit at about 450 tonne, there is scope of more than hundred tiny units to be set up to fulfill the demand potential.C] Plant Capacity: Availability of pineapple : 6 (six) months, Main Season August to October. 2nd Session December to February. Effective Working days : 150 Days No. of Shifts/days : 2 (two) shifts No. of Hours/shifts : 8 hours. Processing Capacity : 500 Kgs/Shift/Day Average yield of pineapple product : 55% Daily production ( of 2 shifts) : 385 Kgs. Annual Production : 82.50 tonne at 100% capacity. A capacity of 56 tonne for the first year in suggested on the above basis: For the purpose of this profiles, it is assumed that the product-mix will comprise 40.6 tonne of juice and 15.4 tonne of jams, totaling 56.0 tonne at 70% capacity utilization..D] Raw Material & its avilability: The total area under pineapple cultivation in the north-eastern regin is around 45000 hectare. Assam, Meghalaya and Tripura are the largest pineapple producing States. It is estimated that about 195000 tonnes are grown in Assam 75000 tonne in Meghalaya and 35000 tonnes in Tripura. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-156]E] Process: The main process steps are : 1. Sorting classification and storage of pineapples according to quality and size. 2. Washing in rotary washers by water sprays. 3. Inspection of washed pineapples. 4. cutting of pineapples in slices. 5. Pressing of sliced pineapples in pulping machine 6. collection of juice in stainless steel tanks and pumping into strainer where the suspended coarse materials are removed. 7. Centrifuging of clear juice in stainless steel centrifuge. 8. Addition of sugar, syrup, flavouring essence, preservatives in blending tank. 9. Filling, sealing and sterilization . 10. Cooling, labeling and packaging. Process Flow Chart:F] Machineries & Equipments required: Amount Required (In Lakh Rs.) 1. Rotary Washer. 2. Slicing Machine 3. Pulping Machine 4. Can sealing machine, 5. Bottle filling machine 4.8 6. Pilfer proof cap sealing machine. 7. Bottle filling machine 8. Label gumming machine 9. Testing equipment 10. Misc. spare parts, motors etc. 11. Weighing scales. Total 4.8G] Requirement of Infrastructure: The major infrastructure requirements are – 1. Covered Area 2000 Sq. mtr. 2. Power 12 KW 4. Water 2000 Ltrs / DayH] Manpower Requirement: The unit will employ 9 Nos. of persons. 1 Manager 1 No. 2 Skilled Worker 4 No. 3 Un Skilled Worker 4 No. Total 9 No. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-157]I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: (Rent) 0.00 iv. Plant & Machineries: 4.80 v. Misc. Fixed Assets: 1.20 (Furnitures, Fixtures, electrification etc.) Total 6.00 vi. Preliminary & Pre-operative expenses: 0.60 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 6.60 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [15 Days] 0.85 ii. Finished goods [7 Days] 0.50 iii. Receivables [7 Days] 0.75 Total amount of Working Capital required 2.10 Total Fund Required for the Project: [1 + 2] Rs 8.70 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 6.09 5.22 ii. Subsidy entitled: 2.18 3.05 iii. Own contribution @ 5% of Project Cost: 0.44 0.44 Total 8.70 8.70J] Annual Sales Forecasting: @ 70% Capacity The prevailing market price for pineapple jam is Rs.100/- to Rs.110/- per Kg. Keeping in view the need to penetrate the market and fight off competition from established brand e.g. Dipy, Kissan etc., a net price of Rs.85,000 per tonne has been taken. The net price for juice has been taken Rs.50,000 per MT of juice, where as prevailing market price for pineapple juice is Rs. 75 to Rs.80 per Kg. Item Tonne at Rs./Tonne Rs.in lakh 70% Cap. utilization. Juice 40.00 50,000 20.00 Jam 13.50 95,000 12.80 Net Sales Realisation 32.80 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-158]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 32.80 37.49 42.17 42.17 42.17 2 Less Cost of Materials: 20.40 23.31 26.23 26.23 26.23 3 Gross Profit (1-2): 12.40 14.17 15.94 15.94 15.94 4 Less other operating expenses: i) Rent for Land: 0.50 0.54 0.57 0.61 0.66 ii) Salary for staff: 4.00 4.28 4.58 4.90 5.24 iii) Electricity and maintainance: 0.60 0.64 0.69 0.74 0.79 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 2.00 2.14 2.29 2.45 2.62 vi) Insurance and other misc. expenses: 0.30 0.32 0.34 0.37 0.39 Total of Sl. 4. 7.60 8.13 8.70 9.31 9.96 5 Profit before Depriciation, Interest and Taxes(3-4): 4.80 6.04 7.24 6.63 5.98 6 Less Depriciation on Fixed Assets: 0.60 0.60 0.60 0.60 0.60 7 profit before interest and taxes (5-6): 4.20 5.44 6.64 6.03 5.38 8 Less Interest payable on loan: 0.79 0.63 0.48 0.32 0.16 9 Profit before taxes (7-8): 3.41 4.81 6.17 5.72 5.2210 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 3.41 4.81 6.17 5.72 5.22 Percentage of Profit on Sale: 10.39 12.82 14.62 13.55 12.3812 Provision for repayment of loan: 1.22 1.22 1.22 1.22 1.2213 Retained Profit (11-12): 2.19 3.59 4.95 4.50 4.0014 Net Cash Accruals 2.79 4.19 5.55 5.10 4.60 [Depreciation added back with retained profit]15 Cumulated Net profit: 3.41 8.21 14.38 20.10 25.32 Pay-Back Period: 22 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 6.09 4.87 3.65 2.44 1.22 Proposed Repayment during the year: 1.22 1.22 1.22 1.22 1.22 Refundable loan at the end of the year: 4.87 3.65 2.44 1.22 0.00 Total Debt-Service [Interest+Repayment]: 2.01 1.85 1.69 1.53 1.38 Fund Available for Debt-Service: 4.80 6.04 7.24 6.63 5.98 Debt-Service Coverage Ratio: 2.39 3.26 4.28 4.32 4.35 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-159]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.435 ii) Loan from Bank: 6.090 iii) Increase in Subsidy: 2.175 iv) Profit Before Interest and taxes: 4.200 5.439 6.642 6.033 5.381 v) Depreciation added back: 0.600 0.600 0.600 0.600 0.600 Total 13.500 6.039 7.242 6.633 5.981 b) Uses of Fund: i) Increase in Fixed Assets: 6.000 ii) Preliminary Expenses: 0.600 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 2.100 v) Decrease in Loan: 1.218 1.218 1.218 1.218 1.218 vi) Interest payable: 0.792 0.633 0.475 0.317 0.158 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 10.710 1.851 1.693 1.535 1.376 Opening Balance: 2.790 6.978 12.527 17.625 Surplus/Deficit Generated: 2.790 4.188 5.549 5.098 4.604 Closing Balance: 2.790 6.978 12.527 17.625 22.229N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.44 0.44 0.44 0.44 0.44 ii) Cumulated Net Profit: 3.41 8.21 14.38 20.10 25.32 Net Worth: 3.84 8.65 14.82 20.53 25.75 iii) Subsidy: 2.18 2.18 2.18 2.18 2.18 iv) Loan at Bank: 4.87 3.65 2.44 1.22 0.00 Total 10.89 14.48 19.43 23.92 27.93 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 6.60 6.00 5.40 4.80 4.20 Less depreciation on Fixed Assets: 0.60 0.60 0.60 0.60 0.60 i) Net Block: 6.00 5.40 4.80 4.20 3.60 ii) Working Capital: 2.10 2.10 2.10 2.10 2.10 iii) Cash balance: 2.79 6.98 12.53 17.62 22.23 Total 10.89 14.48 19.43 23.92 27.93 Total Investment: 8.700 8.70 7.91 7.27 6.80 6.48 Return on Investment: 39.18 60.77 84.76 84.06 80.55 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 1.892 1.233 1.075 0.917 0.758 Other Operating Expenses 60% 4.260 4.558 4.877 5.219 5.584 Total 6.152 5.792 5.952 6.135 6.342 BEP [in % of target business] 56.171 48.952 45.114 48.053 51.467 [100xFC/(FC+Net profit)] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-160]P] Machinery & Equipment Suppliers: 1. M/s. B.Sen Bency & Co., 2. M/s. Gardeners Corpn., 65/11, Rohtak Road, 6, Doctor’s Lane, New Delhi (Near Gole Market) Post Box No. 299, New Delhi – 110 001 3. M/s. G.R. Engg. Pvt. Ltd., 4. M/s. Mather & Greaves Ltd., G.R. House, Chinchward, 86, Vassanji Road, Poona – 411 019 Mumbai – 411 019 5. M/s. Metal Box Co. of India, 6. M/s. Narang’s Corporation, Allahabad Bank Building P-25, Connaught Place, Connaught Place, below Madras Hotel, New Delhi – 110 001 mew de;jo – 110 001 7. M/s. Raylon Metal Works, 23, Bellasis Road, Mumbai – 400 008. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-161]A] Introduction: Fruit Toffees are prepared from papaya which is grown almost throughout the year in the country. The matured fruit is suitably processed to produce fruit toffee. It is also known as Tutty-Fruity and finds its major consumption in ice-cream, chewing pan, pan-masala, bakery items etc.B] Market Potential of the product: Tutty-fruity is basically a confectionery product and is commonly defined as flavored fruit cubes. It has wide range of applications. As an enriching and appealing agent tutty-fruit is incorporated into bread, ice cream, pudding, cakes, rusk and a variety of sweet meats, confectionery and bakery products. In the state of Tripura and the North-Eastern India there are a number of ice cream and sweets manufacturing units which consume tutty-fruity in large volume every year. Apart from these, bakery units have been increasingly introducing new types of bread and confectionery item in line with the changing consumers’ taste and preferences. Consumption of tutty-fruity presently in both bakery and confectionery industries are sizeable and are also increasing over the years. It is understood that a large chunk of the demand from Tripura & North Eastern India is presently being met by suppliers from outside this region (e.g. Maharashtra). There are only a few manufacturers of tutty-fruity in this region. Hence, the proposed unit in Tripura is expected to have good market prospect in the state of Tripura and those of North-Eastern Region.C] Plant Capacity: The unit will operate on single shift basis per day for 300 days per annum. The raw materials required at 100% capacity utilization will be 262 MT for producing 257 MT per annum, the wastage being 2%.D] Raw Material & its avilability: The raw materials and consumables required for production of Tutty-fruity are matured and unripe papaya, sugar, salt, preservation, colour, flavours etc. Items Qty.(in MT) Papaya fruit 185 Sugar 50 Preservatives, colour flavour etc. L.S. Salt 65 Packaging bags(500 gms) 36000 Nos. Corrugated & Labelled boxed(13 Kg.) etc . L.S. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-162]E] Process: Matured and unripe papayas are washed in water and then cut in the form of cubes with the help of slicing/cubing machine after peeling. The material is then stored in brine for about 7.10 days or as required. It is then washed and boiled in sugar syrup and citric acid in stainless steel vessels. The sugar is kept hot for a few hours, when as a result of osmosis the fruit absorbs the sugar syrup. During cooling, colour, flavour and preservatives are added. Excess syrup is removed by placing the material on inclined trays and is recycled. The dried material obtained from tray is then packed in poly-bags followed by final packaging for dispatch. Process Flow Chart:F] Machineries & Equipments required: Amount Required (In Lakh Rs.) Peeling machine … 1 No. Cubing machine with attached sieving arrangement 1 No. cylindrical aluminium vessel … 1 No. Dryer (Tray) (1 No), Blower … 1 No. Diesel Furnace (Bhati) … 1 No. Plastic Drums (200 Ltrs) … 15 Nos. 6.25 Laboratory equipment, weighing scale and other miscellaneous items. Total 6.25G] Requirement of Infrastructure: The major infrastructure requirements are – 1. Covered Area 500 Sq. ft. 2. Power 10 KVA 4. Water 8000 Ltrs / DayH] Manpower Requirement: The unit will employ 10 Nos. of persons. 1 Administrative Staffs 2 No. 2 Factory Staffs 8 No. Total 10 No. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-163]I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent/own) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: (Rent/own) 0.00 iv. Plant & Machineries: 6.25 v. Misc. Fixed Assets: 1.20 (Furnitures, Fixtures, electrification etc.) Total 7.45 vi. Preliminary & Pre-operative expenses: 0.90 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 8.35 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [2 Months] 3.00 ii. Finished goods [1 Months] 2.40 iii. Receivables [1 Months] 3.25 Total amount of Working Capital required 8.65 Total Fund Required for the Project: [1 + 2] Rs 17.00 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 11.90 10.20 ii. Subsidy entitled: 4.25 5.95 iii. Own contribution @ 5% of Project Cost: 0.85 0.85 Total 17.00 17.00J] Annual Sales Forecasting: @ 70% Capacity The sales realization at 70% capacity utilization. Fruit Toffee 180 Tons (at 70% Capacity) @Rs.18000/- per ton Rs.32.40 lakhs. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-164]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 32.40 37.03 41.66 41.66 41.66 2 Less Cost of Materials: 18.00 20.57 23.14 23.14 23.14 3 Gross Profit (1-2): 14.40 16.46 18.51 18.51 18.51 4 Less other operating expenses: i) Rent for Land: 0.50 0.54 0.57 0.61 0.66 ii) Salary for staff: 3.50 3.75 4.01 4.29 4.59 iii) Electricity and maintainance: 0.60 0.64 0.69 0.74 0.79 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 3.00 3.21 3.43 3.68 3.93 vi) Insurance and other misc. expenses: 0.30 0.32 0.34 0.37 0.39 Total of Sl. 4. 8.10 8.67 9.27 9.92 10.62 5 Profit before Depriciation, Interest and Taxes(3-4): 6.30 7.79 9.24 8.59 7.90 6 Less Depriciation on Fixed Assets: 0.75 0.75 0.75 0.75 0.75 7 profit before interest and taxes (5-6): 5.56 7.05 8.50 7.85 7.15 8 Less Interest payable on loan: 1.55 1.24 0.93 0.62 0.31 9 Profit before taxes (7-8): 4.01 5.81 7.57 7.23 6.8410 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 4.01 5.81 7.57 7.23 6.84 Percentage of Profit on Sale: 12.37 15.68 18.17 17.35 16.4312 Provision for repayment of loan: 2.38 2.38 2.38 2.38 2.3813 Retained Profit (11-12): 1.63 3.43 5.19 4.85 4.4614 Net Cash Accruals 2.37 4.17 5.93 5.59 5.21 [Depreciation added back with retained profit]15 Cumulated Net profit: 4.01 9.82 17.38 24.61 31.45 Pay-Back Period: 35 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 11.90 9.52 7.14 4.76 2.38 Proposed Repayment during the year: 2.38 2.38 2.38 2.38 2.38 Refundable loan at the end of the year: 9.52 7.14 4.76 2.38 0.00 Total Debt-Service [Interest+Repayment]: 3.93 3.62 3.31 3.00 2.69 Fund Available for Debt-Service: 6.30 7.79 9.24 8.59 7.90 Debt-Service Coverage Ratio: 1.60 2.15 2.79 2.86 2.94 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-165]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.850 ii) Loan from Bank: 11.900 iii) Increase in Subsidy: 4.250 iv) Profit Before Interest and taxes: 5.555 7.045 8.496 7.846 7.152 v) Depreciation added back: 0.745 0.745 0.745 0.745 0.745 Total 23.300 7.790 9.241 8.591 7.897 b) Uses of Fund: i) Increase in Fixed Assets: 7.450 ii) Preliminary Expenses: 0.900 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 8.650 v) Decrease in Loan: 2.380 2.380 2.380 2.380 2.380 vi) Interest payable: 1.547 1.238 0.928 0.619 0.309 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 20.927 3.618 3.308 2.999 2.689 Opening Balance: 2.373 6.546 12.478 18.071 Surplus/Deficit Generated: 2.373 4.173 5.932 5.593 5.207 Closing Balance: 2.373 6.546 12.478 18.071 23.278N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.85 0.85 0.85 0.85 0.85 ii) Cumulated Net Profit: 4.01 9.82 17.38 24.61 31.45 Net Worth: 4.86 10.67 18.23 25.46 32.30 iii) Subsidy: 4.25 4.25 4.25 4.25 4.25 iv) Loan at Bank: 9.52 7.14 4.76 2.38 0.00 Total 18.63 22.06 27.24 32.09 36.55 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 8.35 7.61 6.86 6.12 5.37 Less depreciation on Fixed Assets: 0.75 0.75 0.75 0.75 0.75 i) Net Block: 7.61 6.86 6.12 5.37 4.63 ii) Working Capital: 8.65 8.65 8.65 8.65 8.65 iii) Cash balance: 2.37 6.55 12.48 18.07 23.28 Total 18.63 22.06 27.24 32.09 36.55 Total Investment: 17.000 17.00 15.45 14.22 13.29 12.67 Return on Investment: 23.58 37.58 53.23 54.40 54.01 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 2.792 1.983 1.673 1.364 1.054 Other Operating Expenses 60% 4.560 4.879 5.221 5.586 5.977 Total 7.352 6.862 6.894 6.950 7.032 BEP [in % of target business] 53.853 46.832 42.728 44.719 47.102 [100xFC/(FC+Net profit)] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-166]P] Machinery & Equipment Suppliers: 1. M/s. Gansons Ltd., 3. M/s Pasteur Engg. Company Ltd., 59-B Chowringhee Road, Mall Road, Dum Dum, Calcutta-700 020. Calcutta-700 028. 2. M/s Mather & Platt Ltd., 4. M/s Process Machinery & Equipment Hamilton House, Pvt. Ltd., 8, Graham Road, Ballard Estate, 8A, S.P. Mukherjee Road, Mumbai-400 001. Calcutta-700 025. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-167]A] Introduction: The climate in the north-eastern region is suitable for horticulture. Consequently, substantial quantities of different types of fruits, both citrus and non-citrus varieties are gorwn in this reigon. Amongst the citrus fruits, oranges are next to pineapple in terms of production in the retion. Anumber of processed orange products such as juice, marmalade and squash can be made from it.B] Market Potential of the product: The total availability of oranges in the north-eastern region is around 1.53 lakh tons per year. Bulk of this quantity gets wasted due to deterioration with time. If 15% of this were to be processed into value added orange products, there will be a potential to produce nearly 23000 tonne of processed orange products valued at around Rs. 2070 crore per year which will help boost the economy of the region to a greater extent. The North Eastern Region Agriculture Marketing Corporatin (NERAMAC) is willing to market the processed orange products. Tripura has the potential for setting up a few units to process oranges which are grown locally.C] Plant Capacity: An annual production of 94 tonne of processed orange products has been suggested on the following basis: Availability of orange : 5 (five) months (Main season November to March) Effective Working Days : 125 days per year Processing Capacity : 500 Kg/shift No. of Shift :2 Average yield of juice & pulp : 90% Capacity Utilisation : 70% Daily Production at 70% of rated capacity – Juice : 280 Kgs Pulp : 350 Kgs. Annual Production – Juice : 35 tonne Pulp : 43.7 tonne It is proposed that 14 tonne of juice is sold directly. The remaining 21 tonne would be mixed with sugar syrup to produce 34 tonne of squash. A typical product-mix would be : ( Tonne/Year ) Orange Juice … 14 Orange Squash … 33.6 Orange Marmalade … 46.2 Total : 93.8 ===== Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-168]D] Raw Material & its avilability: The total area under orange cultivation in the north-eastern region is around 30000 hectare. Manipur, Meghalaya, Assam and Tripura in that order are the main orange growing States with annual output as under: Orange Production Tonne / year Mizoram … 15,664 Manipur … 5,750 Meghalaya … 40,885 Assam ,,, 45,996 Tripura … 36,500 Arunachal Pradesh … 8,256 Total : 153,051 ======= For a unit production 93.80 lakh tonne of orange products as per the product-mix proposed about 87.5 tonne of oranges are required.E] Process: The main process steps are : • Sorting of oranges as per quality • Washing the oranges by water spray • Peeling the oranges • Putting the oranges in juice extractor • Collection of juice in stainless steel tanks and pumping into strainer where the suspending coarse materials are removed. • Centrifuging of clear juice in sugar stainless steel centrifuge. • Boiling the pulp with sugar into semisolid form. • Adding preservatives & flavouring essence to juice and pulp separately in blending tanks. • Cooling, mixing juice with sugar syrup. • Filling, sterlisation and sealing. • Packing and labeling. It is suggested that entrepreneurs desirous of setting up fruit processing unit get training at institutions like Central Food Technology Research Institute, Mysore. Process Flow Chart:F] Requirement of Infrastructure: The major infrastructure requirements are – 1. Covered Area 2000 Sq. mtr. 2. Power 14 KW 4. Water 4200 Ltrs / Day Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-169]G] Machineries & Equipments required: Amount Required (In Lakh Rs.) (i) Coil type juicing machine with Aluminum head. (ii) Rosing machine. (iii) Hydraulic juice press (iv) Steam jacketed kettle with self generating system. (v) Stainless steel storage tank. (vi) Rotary washer. (vii) Stainer (viii) Tubular pasturizer cum cooler. (ix) Vacuum filling machine 4.55 (x) Can sealing machine. (xi) Bottle washer (xii) Pilfer proof cap sealing machine. (xiii) Bottle filling machine. (xiv) Label gumming machine (xv) Testing equipments. (xvi) Miscellaneous spare parts, motors etc. (xvii) Weighing scale. Total 4.55H] Manpower Requirement: The unit will employ 8 Nos. of persons. 1 Manager 1 No. 2 Skilled Worker 3 No. 3 Un Skilled Worker 4 No. Total 8 No.I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: (Rent) 0.00 iv. Plant & Machineries: 4.55 v. Misc. Fixed Assets: 1.20 (Furnitures, Fixtures, electrification etc.) Total 5.75 vi. Preliminary & Pre-operative expenses: 0.90 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 6.65 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 4.80 ii. Finished goods [10 Days] 2.40 iii. Receivables [20 Days] 3.50 Total amount of Working Capital required 10.70 Total Fund Required for the Project: [1 + 2] Rs 17.35 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 12.15 10.41 ii. Subsidy entitled: 4.34 6.07 iii. Own contribution @ 5% of Project Cost: 0.87 0.87 Total 17.35 17.35 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-170]J] Annual Sales Forecasting: @ 70% Capacity Keeping in view the need to penetrate the market and face competition from established brands like Dipy, Kissan, net price has been taken as per the present market price. The following is the income receipt of the first year at operation. Items Tonne/Yr. Rs./Tonne Rs. lakh Juice 14 95,000 13.30 Marmalade 45 85,000 38.25 Squash 30 75,000 22.50 Total : 74.05K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 74.05 84.63 95.21 95.21 95.21 2 Less Cost of Materials: 57.60 65.83 74.06 74.06 74.06 3 Gross Profit (1-2): 16.45 18.80 21.15 21.15 21.15 4 Less other operating expenses: i) Rent for Land: 0.50 0.54 0.57 0.61 0.66 ii) Salary for staff: 3.00 3.21 3.43 3.68 3.93 iii) Electricity and maintainance: 0.60 0.64 0.69 0.74 0.79 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 2.00 2.14 2.29 2.45 2.62 vi) Insurance and other misc. expenses: 0.30 0.32 0.34 0.37 0.39 Total of Sl. 4. 6.60 7.06 7.56 8.09 8.65 5 Profit before Depriciation, Interest and Taxes(3-4): 9.85 11.74 13.59 13.06 12.50 6 Less Depriciation on Fixed Assets: 0.58 0.58 0.58 0.58 0.58 7 profit before interest and taxes (5-6): 9.28 11.16 13.02 12.49 11.92 8 Less Interest payable on loan: 1.58 1.26 0.95 0.63 0.32 9 Profit before taxes (7-8): 7.70 9.90 12.07 11.86 11.6110 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 7.70 9.90 12.07 11.86 11.61 Percentage of Profit on Sale: 10.39 11.70 12.68 12.46 12.1912 Provision for repayment of loan: 2.43 2.43 2.43 2.43 2.4313 Retained Profit (11-12): 5.27 7.47 9.64 9.43 9.1814 Net Cash Accruals 5.84 8.05 10.22 10.00 9.75 [Depreciation added back with retained profit]15 Cumulated Net profit: 7.70 17.60 29.67 41.53 53.13 Pay-Back Period: 24 Months Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-171]L] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 12.15 9.72 7.29 4.86 2.43 Proposed Repayment during the year: 2.43 2.43 2.43 2.43 2.43 Refundable loan at the end of the year: 9.72 7.29 4.86 2.43 0.00 Total Debt-Service [Interest+Repayment]: 4.01 3.69 3.38 3.06 2.74 Fund Available for Debt-Service: 9.85 11.74 13.59 13.06 12.50 Debt-Service Coverage Ratio: 2.46 3.18 4.03 4.27 4.55M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.868 ii) Loan from Bank: 12.145 iii) Increase in Subsidy: 4.338 iv) Profit Before Interest and taxes: 9.275 11.163 13.019 12.490 11.924 v) Depreciation added back: 0.575 0.575 0.575 0.575 0.575 Total 27.200 11.738 13.594 13.065 12.499 b) Uses of Fund: i) Increase in Fixed Assets: 5.750 ii) Preliminary Expenses: 0.900 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 10.700 v) Decrease in Loan: 2.429 2.429 2.429 2.429 2.429 vi) Interest payable: 1.579 1.263 0.947 0.632 0.316 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 21.358 3.692 3.376 3.061 2.745 Opening Balance: 5.842 13.888 24.105 34.110 Surplus/Deficit Generated: 5.842 8.046 10.217 10.004 9.754 Closing Balance: 5.842 13.888 24.105 34.110 43.864N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.87 0.87 0.87 0.87 0.87 ii) Cumulated Net Profit: 7.70 17.60 29.67 41.53 53.13 Net Worth: 8.56 18.46 30.53 42.39 54.00 iii) Subsidy: 4.34 4.34 4.34 4.34 4.34 iv) Loan at Bank: 9.72 7.29 4.86 2.43 0.00 Total 22.62 30.09 39.73 49.16 58.34 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 6.65 6.08 5.50 4.93 4.35 Less depreciation on Fixed Assets: 0.58 0.58 0.58 0.58 0.58 i) Net Block: 6.08 5.50 4.93 4.35 3.78 ii) Working Capital: 10.70 10.70 10.70 10.70 10.70 iii) Cash balance: 5.84 13.89 24.11 34.11 43.86 Total 22.62 30.09 39.73 49.16 58.34 Total Investment: 17.350 17.35 15.77 14.51 13.56 12.93 Return on Investment: 44.36 62.77 83.20 87.44 89.78 [100XNet profit/Total Investment] Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-172]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 2.654 1.838 1.522 1.207 0.891 Other Operating Expenses 60% 3.660 3.916 4.190 4.484 4.798 Total 6.314 5.754 5.713 5.690 5.688 BEP [in % of target business] 39.062 32.896 29.590 30.340 31.277 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: 1. M/s. a.V.P. Engineering Co.(P) Ltd., 2, Jessore Road, Kilkatta – 700 028 2. M/s. Gardeners Corp., 6, Doctor’s Lane (Near Govt. Market), Post Box No. 229, New Delhi – 110 001 3. M/s. Metal Box Co. of India, Allahabad Bank Building, Connaught Place, New Delhi – 110 001 4. M/s. Mather & Platt, 1, Forbes Street, Mumbai – 400 001 8. M/s. Narangs Corporation, P – 25, Connaught Place, Below Madras Hotel, New Delhi – 110 001 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-173]A] Introduction: The handloom industry plays a vital role in the rural economy of the north-eastern states. Almost every household in rural area has a loom and most of the womenfolk engage themselves in weaving. Though women take it as subsidiary occupation, with the impetus being given by the government to promote the handloom industry, it is fast becoming a full time income generating occupation for increasing numbers of rural folk. Consequently, the demand for looms and accessories is also increasing.B] Market Potential of the product: There are about 17 lakh handlooms in the north-eastern region of which the active looms are about 10.8 lakh as given below. This includes about 1.58 lakh commercial looms and 9.22 lakh noncommercial looms. State Commercial Looms Non-Commercial Looms Assam 34.50 471.90 Nagaland 6.60 100.00 Meghalaya 4.30 30.00 Arunachal Pradesh 0.24 72.00 Manipur 100.00 151.00 Tripura 7.80 96.00 Mizoram 5.00 0.50 158.44 922.20 ====== ====== Looms are made of wooden frame with necessary attachments. Assuming the life of commercial looms as 5 years and non-commercial looms as 8 years the replacement demand potential is estimated at about 1,47,000 per year. In addition, there would be a demand for new looms by various production- cum-training centres as well as new commercial centres.C] Target Production: Of the total population of looms, it is understood that about 20% to 25% is constituted by fly shuttle looms with drawbay attachment, 50% to 60% are plain fly shuttle looms and the balance Loin Looms. It is proposed to manufacture plain fly shuttle looms and drawbay looms. Loin looms are not envisaged since these are being used only in specific hilly areas and are gradually being phased out. It is also proposed to include spinning wheel (charkha) which is used for pre-processing of yarn. Accordingly, the product-mis suggested is as under. Looms: Qty. Nos./yr. Drawbay looms (with attachment) 400 Fly shuttle plain looms 800 Accessories: Warping drums 144 Spinning wheel(charkha) 960 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-174]D] Raw Material & its avilability: The main raw materials required are sal wood and non-sal wood. Besides, items like nail, sand paper, cycle ring, nuts & bolts and spindle are required. All these items are easily available in the local market. The annual requirement of main raw material in the first year of operation is as under: Qty. Sal Wood 4450 cu.ft. Non-sal wood 4320 cu.ft.E] Process: The major steps involved in manufacture of looms and accessories are: i) Cutting and making the wood to the required size and shape ii) Joining the pieces using nails, nuts & bolts and polishing with sand paper, where required.F] Requirement of Infrastructure: The major infrastructure requirements are – 1. Covered Area 1500 Sq. mtr. 2. Power 1 KW 4. Water 500 Ltrs / DayG] Machineries & Equipments required: Amount Required (In Lakh Rs.) i) Hand saw ii) Hammer iii) Planner of different sizes 1.8 iv) Iron planner v) Wood working lathe vi) Small tools & equipment Total 1.8H] Manpower Requirement: The unit will employ 8 Nos. of persons. 1 Manager 1 No. 2 Carpenter 5 No. 3 Helper 8 No. 4 Chowkidar 1 No. Total 15 No. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-175]I] Total Capital Requirement: 1. Fixed Capital: (Rs. In Lakh) i. Land: (Rent) 0.00 ii. Site Development: 0.00 iii. Building/Civil Works: (Rent) 0.00 iv. Plant & Machineries: 1.80 v. Misc. Fixed Assets: 0.60 (Furnitures, Fixtures, electrification etc.) Total 2.40 vi. Preliminary & Pre-operative expenses: 0.30 vii. Margin for Working Capital not required 0.00 Total amount of Fixed Capital required 2.70 2. Working Capital: (Rs. In Lakh) i. Raw Materials: [1 Month] 4.00 ii. Finished goods [10 Days] 1.80 iii. Receivables [15 Days] 4.50 Total amount of Working Capital required 10.30 Total Fund Required for the Project: [1 + 2] Rs 13.00 Lakh 3. Means of Finance: (Rs. In Lakh) Urban Rural i. Composite Loan Under PMEGP 9.10 7.80 ii. Subsidy entitled: 3.25 4.55 iii. Own contribution @ 5% of Project Cost: 0.65 0.65 Total 13.00 13.00J] Annual Sales Forecasting: @ 70% Capacity The sales realization is estimated at Rs. 70.01 lakhs at 70% Capacity Utilization on the following basis. Looms (Rs. in Lakhs) Drawbay looms 350 nos. @ Rs.6000/each 21.00 Fly shuttle plain looms 650 nos. @ Rs. 6500 42.25 Accessories: Warping drums 144 nos. @ Rs.1400/each 2.16 Spinning wheel(charkha) 960 nos. @ Rs. 480/each 4.60 ---------- 70.01 ====== Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-176]K] Projected Profitability of the Project: Assumptions: Area of the Project Urban Annual Increase in Operating Expenses: 7% Rate of interest on loan: 13 % Rate of depriciation on fixed assets: 10 % Amount are in Lakh Rs. Projected profitability for: 1st Year 2nd Year 3rd Year 4th Year 5th Year 70 80 90 90 90 1 Expected Sales: 70.01 80.01 90.01 90.01 90.01 2 Less Cost of Materials: 48.00 54.86 61.71 61.71 61.71 3 Gross Profit (1-2): 22.01 25.15 28.30 28.30 28.30 4 Less other operating expenses: i) Rent for Land: 1.00 1.07 1.14 1.23 1.31 ii) Salary for staff: 9.00 9.63 10.30 11.03 11.80 iii) Electricity and maintainance: 0.60 0.64 0.69 0.74 0.79 iv) Office expenses (Stationary, Telephone etc.) 0.20 0.21 0.23 0.25 0.26 v) Advertising and Selling expenses: 3.00 3.21 3.43 3.68 3.93 vi) Insurance and other misc. expenses: 0.30 0.32 0.34 0.37 0.39 Total of Sl. 4. 14.10 15.09 16.14 17.27 18.48 5 Profit before Depriciation, Interest and Taxes(3-4): 7.91 10.07 12.16 11.03 9.82 6 Less Depriciation on Fixed Assets: 0.24 0.24 0.24 0.24 0.24 7 profit before interest and taxes (5-6): 7.67 9.83 11.92 10.79 9.58 8 Less Interest payable on loan: 1.18 0.95 0.71 0.47 0.24 9 Profit before taxes (7-8): 6.49 8.88 11.21 10.31 9.3410 Income Tax payable (exempted under NEIPP): 0.00 0.00 0.00 0.00 0.0011 Calculated Net profit (9-10): 6.49 8.88 11.21 10.31 9.34 Percentage of Profit on Sale: 9.27 11.10 12.45 11.46 10.3812 Provision for repayment of loan: 1.82 1.82 1.82 1.82 1.8213 Retained Profit (11-12): 4.67 7.06 9.39 8.49 7.5214 Net Cash Accruals 4.91 7.30 9.63 8.73 7.76 [Depreciation added back with retained profit]15 Cumulated Net profit: 6.49 15.37 26.57 36.89 46.23 Pay-Back Period: 20 MonthsL] Repayment Schedule: Proposed Repayment Period: 5 Years Proposed Repayment Schedule: [Amounts are in Lakh Rupees] 1st Year 2nd Year 3rd Year 4th Year 5th Year Refundable loan at the beginning of the year: 9.10 7.28 5.46 3.64 1.82 Proposed Repayment during the year: 1.82 1.82 1.82 1.82 1.82 Refundable loan at the end of the year: 7.28 5.46 3.64 1.82 0.00 Total Debt-Service [Interest+Repayment]: 3.00 2.77 2.53 2.29 2.06 Fund Available for Debt-Service: 7.91 10.07 12.16 11.03 9.82 Debt-Service Coverage Ratio: 2.63 3.64 4.80 4.81 4.77 Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala
    • [Page-177]M] Projected Cash Flow Statement: Amounts are in Lakh Rs. a) Sources of Fund: During The- 1st Year 2nd Year 3rd Year 4th Year 5th Year i) Own Investment: 0.650 ii) Loan from Bank: 9.100 iii) Increase in Subsidy: 3.250 iv) Profit Before Interest and taxes: 7.670 9.827 11.915 10.785 9.576 v) Depreciation added back: 0.240 0.240 0.240 0.240 0.240 Total 20.910 10.067 12.155 11.025 9.816 b) Uses of Fund: i) Increase in Fixed Assets: 2.400 ii) Preliminary Expenses: 0.300 iii) Margin for Working Capital 0.000 iv) Increase in Working Capital: 10.300 v) Decrease in Loan: 1.820 1.820 1.820 1.820 1.820 vi) Interest payable: 1.183 0.946 0.710 0.473 0.237 vii) Income Tax Payable: 0.000 0.000 0.000 0.000 0.000 Total 16.003 2.766 2.530 2.293 2.057 Opening Balance: 4.907 12.208 21.834 30.566 Surplus/Deficit Generated: 4.907 7.301 9.626 8.732 7.760 Closing Balance: 4.907 12.208 21.834 30.566 38.326N] Projected Balance Sheet: At the end of- 1st Year 2nd Year 3rd Year 4th Year 5th Year a) Liabilities: i) Own Investment: 0.65 0.65 0.65 0.65 0.65 ii) Cumulated Net Profit: 6.49 15.37 26.57 36.89 46.23 Net Worth: 7.14 16.02 27.22 37.54 46.88 iii) Subsidy: 3.25 3.25 3.25 3.25 3.25 iv) Loan at Bank: 7.28 5.46 3.64 1.82 0.00 Total 17.67 24.73 34.11 42.61 50.13 b) Assets: Gross Block as Fixed Assets and Pre. Expenses: 2.70 2.46 2.22 1.98 1.74 Less depreciation on Fixed Assets: 0.24 0.24 0.24 0.24 0.24 i) Net Block: 2.46 2.22 1.98 1.74 1.50 ii) Working Capital: 10.30 10.30 10.30 10.30 10.30 iii) Cash balance: 4.91 12.21 21.83 30.57 38.33 Total 17.67 24.73 34.11 42.61 50.13 Total Investment: 13.000 13.00 11.82 10.87 10.16 9.69 Return on Investment: 49.90 75.15 103.08 101.49 96.41 [100XNet profit/Total Investment]O] Calculation of Break-Even Point: Fixed Cost: Amounts are in Lakh Rs. Rent, Interest & Depreciation 100% 2.423 1.186 0.950 0.713 0.477 Other Operating Expenses 60% 7.860 8.410 8.999 9.629 10.303 Total 10.283 9.597 9.949 10.342 10.779 BEP [in % of target business] 56.522 48.803 45.008 48.401 52.338 [100xFC/(FC+Net profit)]P] Machinery & Equipment Suppliers: 1 M/s Industrial equipment, 2 M/s Archana Machinery Stores, A.T.Road, A.T.Road, Guwahati-781 001. Guwahati-781 001. Model Project Profiles of Potential Industries for finance under PMEGP in Tripura. Prepared by SOFED, Agartala