Agarbatti(IncenseStick)Manufacturing

Transcription

1 PROJECT REPORT Agarbatti(IncenseStick)Manufacturing PURPOSE OF THE DOCUMENT This particularr pre feasibii lity is regarding Agarbatti Manufacturing. The objective of the pre feasibility is primarily to facilitate potential entrrepreneurs in project identification for investment and in order to serve this objective; the document covers various aspects of the project concept development, startup, marketing, and finance and business management [We can modify the project capacity and project cost as per your requirement. We can also prepare project report on any subject as per your requirement..] Prepared By: M/S Institute for Industrial Development A unit of M/S Samadhan Samiti 27/1/B Gokhle Marg Lucknow Mail : iidincubator17@gmail.com Social Media : Youtube: Facebook: Twitter: Website:

2 Agarbatti (incense sticks) Manufacturing Agarbatti Incense Sticks Machi ne Brief Details: The burning of incense in religious and social functions has been practiced in India since early times. Dhup an aromatic powder or paste is burnt in Indian homes as a fragrant fumigant and is reputed to possess insecticidal and antiseptic properties. Agarbattis are obtainable in different colors and with different perfumes. The burning time; of an agarbatti varies from 15 minutes to 3 hours according to quality and size. Agarbatti is also obtainable in other forms such as dashang (stickly paste or powder) deep (cones and Dhup, tablets etc.). About 75% of the agarbattis manufactured are of cheap quality containing only charcoal powder or low quality sandal wood powder with a mixture of 50% of wood gun powder. Cheap perfumes are used to give them a top note. In superiorr varieties, essential oils, purified resins, natural fixatives like amber, musk and civet are used along with synthetic aromatics.

3 Market: Agarbatti Industry is one of the labour intensive cottage types of traditional industries in Moreover; it is an export oriented industry also. In fact, this is one the items considered for boosting exports. Owing to the low level of technology involved in this industry, this can be taken to rural /urban areas without much difficulty. The entire production of the unit is presently supplied to resellers at Lucknow.However the firm is planning to establish own brand and start direct marketing to earn more profits. Capacity: The proposed unit shall work for single shift of 10 hours per day for 300 working days per annum. Though some of the operations are to be mechanized the overall productivity will depend on product mix and skills of operators. The machine processes 40Kg of raw material in 10hrs Process: All the ingredients in powder form are mixed well in the proper proportion with water to a semi solid paste. This paste is applied to bamboo sticks and rolled on wooden planks with hands uniformly. The raw sticks are then dried and packed in suitable bundles. For manufacture of perfumed agarbattis the concentrated perfume is diluted first with white oil or diethyl phthalate (Generally 1:3) and raw agarbattis are dipped suitably in dipping trays. The perfumed batties are packed immediately in butter paper bags or polypropylene bags and finally in cartons. A typical composition for masala batties is as under: White chips 40% Gigatu 20% The composition can be modified Charcoal 20% according to the requirements Aromatic chemical Essential 20% Oil and other ingredients

4 PROJECT FINANCIALS Amount of advance and purpose: The firm is seeking Term financial assistance of Rs.4.00 lacs from our bank. Also for meeting working capital requirements of the business requested us for Cash Credit Limit of Rs.6.00 lacs. Application of Fund PARTICULARS Amount Margin Finance Plant & Machinery Margin for Working Capital Grand Total Sources of Fund PARTICULARS Amount Promoters' Contribution Term Loan 1.70 Working capital 2.00 Term Loan from Bank 4.00 Working capital from Bank 6.00 Grand Total Debt Equity Ratio 2.70

5 Machinery & Equipment The proponent has 5 Agarbatti making machines and accessories purchased from own sources.for expansion of the unit the firm shall purchase plant and Machineries worth Rs.5.70Lacs as detailed hereunder which is based on quotation: Name of Machinery Qty. Value (in lac) High speed automatic agarbatti making machine Automatic Dhoopbatti making machine Powder mixing machine Other accessories, tools etc 0.31 Packing,GST etc 0.94 Total 5.70

6 Profitability Analysis Profit on Raw Agarbatti: Manufacturing cost of Agarbatti 1Kg Premix (Masala) = 20/ 1Kg Sticks = 95/ Raw Material for 1Kg raw Ag = 750gm Masala+250gm sticks = Rs. ( ) =38.75/ (Raw Material) Total Prod. Cost 1Kg raw Ag = {Raw Mat. + (Labor+Electricity+Transport+packing)} = { ( )} =Rs.44.45/ (consider Rs. 45/ approx) Sales value of Local Market =Rs. 60 to 75/Kg Net Profit Net Profit/day = Rs. 15/Kg (Average) =15x50=>Rs.900/day Monthly Profit from Raw Agarbatti= 900 X 25 days = Rs. 22,500/Month

7 UTILITIES Power: The total power requirements workout to 3HP.which is sufficient for running the machines. Water Water requirements of the unit shall be met out from pumping set and storage tanks Transportation The plant is located at main road and many private transportation agencies are available on hire. No problems are forseen in the transportation of raw material and finished goods Labour The total man power required for the proposed Unit includes skilled, on skilled workers. They have appointed experienced and trained staff of this field & the entire unskilled and skilled are easily available locally. Pollution Control This unit will not affect the environment, the entrepreneur are advised to obtain, No Objection Certificate from competent authority ie DIC for this purpose Other Licenses/ Registration: Udyog Aadhaar Memorandum(Not Mandatory) Pollution control certificate from DIC Electrical load sanction Connected load available VAT/GST Registration Exempted items