Tissue Paper Project

1. PROJECT REPORT ON
TISSUE PAPER
MANUFACTURING
PREPARED BY : VIPIN MULIK

2. TISSUE PAPER
PROJECT SUMMARY

3. THE PROPOSAL
 The proposal is to set up a 15 TPD
capacity tissue paper manufacturing
unit. The plant is proposed to be
imported from China. The total cost of
the project works out to be Rs. 1200
lakhs
3

4. 1 The Proposal To set up a tissue paper
manufacturing plant
2 Proposed Location the project Gadchiroli
3 Implementation period 10 months
4 Market Entire India
5 Plant and Machinery The entire Plant is
proposed to be imported
from China
4

5. 5
6 Cost of Project 1200 (In
lakhs)
7 Means of finance Promoters
Term Loan
8 Manpower 60
Employees
9 Raw Material Wood Pulp
and Paper
Fiber
10 Utilities 600 KVA

6. TISSUE PAPER MANUFACTURING
6

7. TISSUE PAPER MANUFACTURING
7

8. 8
Pulping and Retting
Pressing
Creping
Reeling and Cutting

9. PULPING AND RETTING
 The first step in the
process of making soft
tissue paper is creating
paper pulp, which can
be generated from
recycled materials or
new ones.
9

10. PRESSING
 Once the pulp is ready, it is pressed through two
pressure rolls so that a majority of the moisture is
squeezed out.
10

11. CREPING
 The pulp is processed with a Yankee dryer, a drying
cylinder heated by steam.
11

12. REELING AND CUTTING
 The long length of
paper is reeled and cut
with a machine, such as
the Advantage
SoftReel, into
appropriate lengths and
sections after it is dried
and thinned.
12

13. PRODUCTS
Facial
tissues
Paper
towels
Toilet
Tissue
13

14. LOCATION AND SITE
 Location of factory : 212A,Gadchiroli,
Maharashtra
 About 2 acre of land is required for
setting up a plant.
 The criteria to be considered for
selection of the location could be
Proximity to railway station
Proximity to Port
Proximity to NH 14

15. LEGAL REQUIREMENTS

16. LEGAL REQUIREMENTS
 PAN to be obtained from Income tax
department;
 Industrial N.A. order to be obtained;
 Excise, Service tax, Profession tax, VAT
and CST Registration Certificates to be
obtained from the respective authorities;
 Permission letter from Govt. of
Maharashtra Boiler Inspectorate to be
obtained; certificate of registration to be
obtained
 ISO and Rain water harvesting certificates
to be obtained; 16

17. 17
 Land possession receipt from bank to be
obtained;
 Certificate from factory inspector’s office to
be obtained;
 Allotment of Provident fund code no.
certificate to be obtained;
 Pollution Control board certificate to be
obtained;
 MSEB connection and water connection to
be obtained.

18. UTILITIES
 Power : The requirement of power is
estimated at 600 KVA.
 The connected load of the facility will be
about 600 KVA . An amount of Rs. 74 lakhs
is estimated for the electrification and
plumbing works of the factory. The cost
includes cost for material handling
equipments, DG set, transformer erection,
cabling, etc.
 Water : 500 KL per day. 18

19. TECHNICAL DETAILS

20. IMPLEMENTATION PERIOD
 The Project will start, only after getting the loan
disbursement and N.A. Sanction; the project timing is
expected at 10 months.
20
Month Activity
1 Compound Wall & Foundation; Advance to Supplier for
machinery; Consultation
2 Column Work; Beam Work
3 Slab Work; MSEB Feeder
4 Brick/Masonry Work
5 Plastering
6 Machinery Foundation; Machinery Delivery; Foundation work;
Consultation
7 Erection & Commissioning; Brick Work
8 MSEB Feeder, Erection & Commissioning, Furniture
9 Safety & Testing Instruments
10 Trial Runs and Production

21. MANPOWER
 The total manpower requirement for the
administration of the factory is 60
employees. The details of the employees
with designation and number are given
below.
21

22. Managerial/Supervisory 4
Assistant Managers 15
Foreman 21
Production Staff 12
Security Staff/Other Staff 4
Marketing Staff 4
Total 60
22

23. MARKET ASSESSMENT

24.  Tissue paper industry is introduced as a new
sub-segment within the paper industry in
India. Tissue market is at a very nascent stage
in India. Due to increasing disposable income,
the consumers are adopting the tissue culture.
 The Indian market for tissue paper is only
30,000 tones per annum, while that in china is
3.0 million tones.
 With the increasing preferences towards
hygiene products, the demand for tissues is
expected to grow at a faster rate in India. The
product has a strong export potential also.
24

25. 25
 The major export market are
 North America
 South America
 Eastern Europe
 Southeast Asia
 Africa
 Eastern Asia
 Western Asia

26. COST BREAK UP

27. COST OF PROJECT
 The total cost of the project envisaged is
about 1200 lakhs. The breakup of the cost
is summarized below.
27

28. Particulars In lakhs
Land and land development 35
Building 247.50
Plant & Machinery 563.90
Utilities 74
Misc. Fixed Assets 22
Deposits 5
Consultancy fees 5
Prel. & preoperative Exp. 85.80
Contingency 44.16
Margin money for WC 117.64
Total 1200 28

29. LAND
 About 2 acre of land is required for the
plant. The cost estimated for the 2 acre
land is Rs. 35 lakhs including the land
development cost.
29

30. BUILDING
 The detail of the building with cost break up
are as follows:
Rs. (Lakhs)
25000 sq. ft truss roofed factory
building
187.50
7000 sq. ft raw materials area 52.50
500 sq. ft Office space 7.50
Total 247.50 30

31. PLANT & MACHINERY
31

32. The plant will have the following sections :
 Pulp making plant (includes stock storeroom,
pulping system, refiner system, process of agent
dissolution measurement for making paper.)
 Paper Making Plant (includes Paper Maker ,
starching system, vacuum system, compressing
air system, finished product warehouse, etc.)
 Auxiliary project : white water recycle treatment
system.
 The plant is proposed to be imported from
China/Taiwan and erected on a Turkey basis. A list
of plant suppliers are attached as annexure.
32

33. Plant Description Cost in lakhs
Pulp making plant, 30 TPD
563.90 (total
cost for the
turkey supply)
Paper making plant 15 TPD
Heavy Oil boiler
White water recycle treatment
system
Slitter machine
Installation & Commissioning on
turkey basis 33

34. FINANCIAL ASSESSMENT

35. MEANS OF FINANCE
 The means of finance is proposed as follows:
 The debt equity ratio works out to 1:1 for the project
Promoters 600 (in lakhs)
Term loan 600 (in lakhs)
Total 1200
35

36. MARGIN MONEY FOR WORKING CAPITAL
 The total working capital requirement was
estimated at Rs. 294.86 lakhs in which promoter’s
margin envisaged is 117.64 lakhs.
 The following norms has been considered for
estimating the working capital requirement
Items Month
Raw material 1.00
Finished goods 0.20
Sundry debtors 2.00
Working expenses 1.00 36

37. COST OF OPERATION AND PROFITABILITY
Items Norms & Assumptions
I CAPACITY AT 100% 15 TPD
Average Annual Capacity
Utilization
1
y
r
5
0
%
2
60%
3
70%
4
80%
5
80%
II INCOME
Tissue Paper Rs. 70,00/MT
III EXPENDITURE - (100%
capacity ; major Expenditure)
Raw Material Pulp (30%) – Rs. 50,000/MT
White paper cutting (70%) – Rs. 20,000/ MT
Yield : 80%
Cost of consumables Rs. 35 lakhs / Yr
Salary/Labor cost Rs. 32.18 lakhs for 50 production staff
Rs. 8.64 lakhs for admin/managerial staff
37

38. Power & Fuel Charges Connected Load 600 KVA;
FC per month : Rs. 270 per
max. demand per month
Variable Charge : Rs. 4 per
KWH
Unit Consumption / MT :
700 KWH
Fuel consumption / Hour :
200 ltrs/hr.
Factoru Overheads Rs. 1000 / MT
Administration Overheads Rs. 36 lakhs is estimated for
the First year of operation
towards administrative
overheads. 5% increase is
provided for subsequent
years.
Repairs & Maintenance
charges
2.5% of fixed assets
Insurance charges 0.25% of fixed assets
38

39. Profitability at Optimum
Level
Optimum utilization(% of
installed capacity)
80%
Sale turnover 2520
Profit before interest,
Depreciation & Tax
458.08
Cash profit(after interest) 284.65
Net Profit 199.05
Financial Indices Debt Equity Ratio 1.1
DSCR(avg) 2.34
Break even point 43.38%
IRR 19.96%
Security Margin 39.18
Pay Back Period(yrs) 4.23
Repayment period of loan(yrs) 6 Years
Moratorium 1 Year
39

40. PRELIMINARY & PREOPERATIVE
EXPENSES
Preliminary Expenses 15(in
lakhs)
Interest during construction
(loan is 6 lakhs and implementation
period is 24 months)
70.80(in
lakhs)
Total 85.80
40

41. CONCLUSION
 The proposal is found to be technically feasible and
economically viable.
 The viability of the project is mainly dependent on the raw
material mainly (between wood pulp and white paper
cutting).
 The selection of plant has an important role for attaining
the recommended yield at the different raw material mix.
 A visit to a plant already supplied by the supplier is
advised before finalizing on purchase of plant.
41

42. Presented by -
1. Yogesh Shinde
2. Viraj Deshmukh
3. Shankar Kumbar
4. Maitreyee Mohokar
5. Ninad Shah
6. Rupa Shetty
7. Paresh Bhandari
8. Suraaj Bhandari
9. Shubham Agrawal
42

43. Presented by -
1. Yogesh Shinde
2. Viraj Deshmukh
3. Shankar Kumbar
4. Maitreyee Mohokar
5. Ninad Shah
6. Rupa Shetty
7. Paresh Bhandari
8. Suraaj Bhandari
9. Shubham Agrawal
43

44. THANK YOU

45. ANY QUESTIONS