The document provides details of a proposed project to start a ball pen ink industry in Aligarh, India. It includes information on the production capacity, implementation schedule, technical production process, financial aspects including total capital investment and projected profits, and addresses of machinery and raw material suppliers. The key points are that the project would produce 12,000 litres of ball pen ink per year, require a total capital investment of Rs. 8,09,900, and is estimated to generate a net profit of Rs. 2,99,610 in the first year.

1. Project Family Tree
of Shaham & Friends SSI Unit
Dodhpur Aligarh
Presented by:
Abu Shaham
10-MBA-18

2. Project Family Tree
ABU SHAHAM
(Owner)
Mohd Alam Shamsuzzama
(Manager) (Chemist)
Mujahid Misbah Nemat
(Accountant) (Clerk) (Tech. staff)
Urman Sarfaraz
(Skilled labour) (Un skilled labour)
Sissharth,Umar,Azhar,Nasir
(Casual Labours)

3. Project to start a ball pen ink
industry in Aligarh
 PRODUCT CODE : XYZ
 PRODUCTION CAPACITY : Quantity : 12,000 litres (per annum)
 Value : Rs. 30,00,000
 MONTH AND YEAR : January, 2013 In Sha Allah
Dodhpur Aligarh UP 202002
 Ph. No: xxxxxxxxxx
 Fax No: xxxxxxxxxx

4. Why ball pen Ink?
 Ball pen is one of the most essential items for
students, educational institutions and for office
work, etc.
 Ink is a viscous and coloured fluid composed of reflux
blue, varnishes, oil and drier. This is a mass
consumption item.

5. Market Potential
 Ball pen is the most common tool for all
schools, colleges and university going students for
writing purpose.
 As greater emphasis is being laid on removal of
illiteracy by the government.
 The prospects of Ball pen ink industry is bright.

6. Basis And Presumptions
Efficiency and working hours 8 working hours/day/shift 300
considered for full capacity days taken into account
utilization. annually.
Time period for achieving full Within 2 months after trial
capacity utilization. production.
Labours, wages and conditions. As per local salaries.

7. Cont…
Interest rate for fixed and Average @ 14%
working capital.
Margin money Average 25%
Rented shed With partition walls
20'× 21'
Costing of machinery and As per local rates.
equipment.

8. Implementation Schedule
1. Selection of site 2 months
2. Collection of quotation for 2 months
M/c and Equipment
3. Procurement of machinery 1 month
4. Placement of order for raw 1/2 month
material
5. Commercial production ½ month
6 months
Total

9. Technical Aspects
Process of Manufacture
 Metal complex dyes and complexes in castor oil/stand
oil, varnishes and driers are mixed together in suitable
proportions in a mixing machine.
 The material so produced is called ball pen Ink

10. Cont…
Quality Control and Standards
As per market demand.
Production Capacity (per annum)
Quantity 12,000 litres
Value Rs. 30,00,000
Motive Power
Electric power 5 H.P. approx.
Man power 8 Nos.
Pollution Control
No liquid or gaseous effluents are released during
the process. Pollution is not involved.

11. Financial Aspects
A. Fixed Capital
(I) Shed of size (rented) 20’×20'
with partition walls
Rs. 200 per month
(ii) Machinery and Equipments

12. Cont…
Description of M/Es Qty. Price
(Rs.)
Mixing machine with motor Cap. 10 litres 1 60,000
per 8 hrs.
Weighing m/c platform type Cap. 50 kg. 1 15,000
Shovel made of stainless steel material 4 4,000
Scraper knife 4 1,600

13. Cont…
Storage tank (for varnish and oil) 2 8,000
1
Triple Roll Mill 50,000
13
Total 1,38,600

14. Cont…
(iii) Testing Equipments Qty. (Rs.)
Ford’s cup 2 2,500
Rectangular Glass Sheet 2 800
Exhaust Fan (for pollution control) 1 800
Cost of power connection,
Electrification and installation
Charges@ 10% of the cost of M/c. and 14,270
equipments

15. Cont
(iv) Total Cost of M/c. and Equipment Rs. 156970
Cost of office equipments/working Tables and chairs etc. Rs. 5,000
(v) Pre-operative Expenses Rs. 5,000
(vi) Total Fixed Capital Rs. 1,66,970

16. B. Working Capital (per month)
(i) Personnel
Designation No. Salary Total
(Rs.) (Rs.)
1. Manager/Chemist 1 3,000 3,000
2. Accountant/Clerk 1 2,000 2,000
3. Skilled workers 2 1,500 1,500

17. Cont…
4. Unskilled workers 2 1,200 2,400
5. Casual labour 2 1,000 2,000
12,400
Total
(+) Perquisites @ 15% of salaries 1,860
14,260
Total

18. (ii) Raw material (per month)
Item Qty. Rate Value
(Rs.) (Rs.)
a) Metal Complex dyes 200Kg. 400/ kg. 80,000
b) Stand oil/castoroil/solvents 550 kg. 130/Kg. 71,500
c) Varnishes (alkyd/Phenolic/Maleic) 250 Kg. 140/Kg. 35,000
d) Drier 10 Kg. 230/Kg. 2,300
1,88,800
Total

19. (iii) Utilities (per month) (Rs.)
a) Power 5 H.P. @ Rs. 3/unit 2,250
Utilities
b) Water charges 500
2,750
Total

20. (iv) Other Contingent Expenses (per month) (Rs.)
a) Rent of the shed 2,000
b) Postage and stationery 500
c) Consumable stores 500
d) Repairs and maintenance 500

21. Cont…
e) Transport charges 1,000
f) Advertisement and publicity 1,500
g) Insurance 1,500
h) Sales expenses and miscellaneous 1,000
expenditure
Total 8,500

22. (v) Total Recurring Expenditure (per month) (Rs.)
a) Raw material 1,88,800
b) Utilities 2,750
c) Salary/Wages 14,260
d) Other expenditure 8,500
2,14,310
Total

23. C. Total Capital Investment
Fixed capital Rs. 1,66,970
Working capital for 3 months Rs. 6,42,930
Rs. 8,09,900
Total

24. Financial Analysis
(1) Cost of production (per year) (Rs.)
a) Total expenditure
25,71,720
b) Depreciation on machinery @ 10%
14,270
c) Depreciation on furniture @ 20%
1,000
d) Interest on total capital investment
1,13,400
Total 27,00,390

25. Cont…
(2 )Turnover (per year) (Rs.)
Ball Pen Ink 12 KL @ Rs. 250 per litre 30,00,000
Net Profit Before Income Tax 2,99,610
10%
Net Profit Ratio
37%
Rate of Return
46.6%
Break-even Point

26. (i) Calculation of Fixed Cost
a) Depreciation on m/c equipments and office 14,270
equipments
b) Rent of shed 24,000
c) Interest on total investment 1,13,400
d) Insurance 18,000
e) 40% of salaries and wages 68,448
f)40% of other contingent expenses 24,000
2,62,118
Total

27. Calculation Of B.E.P
B.E.P
= FC × 100
FC+Profit
= 2,6,2118 × 100
2,62,118+ 2,99,610
= 2,62,118 × 100
5,61,728
= 46.6%

28. Additional Information

29. Addresses of Machinery Suppliers
 M/s. Siddharth Engineering Ltd. Kolkatta
 M/s. Mushtaque Engg. Enterprises Basti
 M/s. Shabnam Eng. Co. Ltd. Ghazipur
 M/s. Fahad Industrial Estate, kochi
 M/s. Pandey Ltd. Banaras
 M/s. Ismail Engg. Pvt. Ltd. Aluva

30. Addresses of Raw Material Suppliers
 M/s. Sarfaraz Quinon Pvt. Ltd. Saharanpur
 M/s. Alam Product Deoband
 M/s. Rafnas Organics Ltd. Calicut
 M/s. Azhar Dye Stuff Industries Ltd. Aligarh
 M/s. Ali Chemical and Industry Ltd. Calicut

31. THANK YOU !!!