1. SHABEER BABU.N.A
3rd SEM MBA
JMC

2. INTRODUCTION
 Paper napkins are becoming increasing
popular with the catering industry due to its
manifold usages. These are absorbent, hygienic, light
and can be had with attractive printing. Facial tissue
Papers are fast becoming popular with the public
due to its lightness, absorbent, hygienic
and handy in nature.

3. RAW MATERIALS
 Tissue paper, paper cartons, polyethylene film and
other packing materials

4. MANUFACTURING PROCESS
 Tissue paper rolls are fed to the Flexographic printing
machine for paper napkins wherein these are printed
and cut to the sizes with the device already fixed with
the machine. These are then packed in numbers or as
desired.
MANPOWER REQUIREMENT : 10

5. PROJECT COST
A. Fixed Capital Rs.
Rental
Land & Building 1,50,000
Plant & Machinery 1,50,000

6. B .Working Capital ( per month)
Raw Material & Packing 4,50,000
Salary & wages 24,000
Other expenses 25,000
Working capital (per month) 4,99,000
Working capital for 3 months 14,97,000
Total (A+B) 16,47,000

7. COST OF PRODUCTION / ANNUM
(Rs.)
Total recurring cost per year 59,88,000
Depreciation on machinery 20,000
Interest on investment 25,0000
62,58,000

8. PROFITABILITY
 Sales turnover Rs.67,25,000
 Annual cost of production Rs.62,58,000
 Annual profit Rs.4,67,000
 Return on sales 28.35%

9. Market potential :
 Due to the Government emphasis for popularizing
tourism, number of new hotels, tourists resorts,
holiday homes etc. are coming up very fast in the
country. This is bound to increase the demand of the
paper conversion products like paper napkins.

10. Annual Production capacity :
 It is envisaged to produce goods worth Rs.67,25,000

11. List of Plant, Machinery &
equipment:
 Two color flexographic printing cum sheeting
machine for paper napkins
 Testing equipments

12. Suppliers of Plant & Machinery :
 M/s Industrial Paper Machines (P) Ltd., A-32, Naraina
Industrial Area, Phase I, New Delhi
 M/s Industrial Paper Machines (P) Ltd., Sonawala
Industrial Estate, Andheri East, Mumbai
 M/s Indo Europa Trading Company, 1396, Chandni
Chowk, Delhi-110006
 M/s Akme Paper Machines, D-23, N.D.S.E. Part I, New
Delhi
 M/s Associated Packaging Machinery Co., 8, Lyons
Range, Kolkotta-700001