PLASTIC DOORS INTRODUCTION
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1 PLASTIC DOORS INTRODUCTION Doors and widows were originally produced by wood. With non availability of the wood the doors are now manufactured with PVC and other materials. PVC doors and windows are made with extruded profiles of different sizes. MARKET The housing shortage in India is phenomenal. There is large backlog in fulfilling the demand for the housing. The construction activity is bound to increase and the demand for the housing is bound to increase. The doors and windows are manly consumed in the following places. Offices (energy savings) Hotels (energy savings & aesthetics) Urban Residential (easy maintenance) Govt. offices & institutions (saving of natural resources PVC windows & doors have following advantages over its existing rivals. Today, plastics are making steady inroads into the building industry. Plastics being lowdensity materials have that advantage over all the traditional building materials. They often do not need any protective coating and can be self-coloured, which can be useful in window frames and cladding. Rigid PVC is the predominant material that is being considered for the applications, which are traditionally stronghold of wood. PVC is assembled to make doors & window frames, as well as complete doors, partitions etc. Advantages of PVC profiles over wood/aluminium Non corrosive in nature Does not need painting or varnishing Good abrasion resistance Can be drilled, nailed, shaved etc 1
2 Easy to install Availability in variety of colours Rot proof Fire proof Reduction of energy wastage during production Waste material can be recycled Perfect insulation- Thermos insulation saves energy Excellent protection against weather Shield against sound pollution Guarantees long life UV protection - will not fade or discolour Condensation free Easy to clean INSTALLED CAPACITY Product Installed No of working Capacity per Capacity per capacity hours per day day annum per hour 300 days per annum PVC Doors kgs MTs 540 MTs and windows PLANT AND MACHINERY 1. Compounding Unit 2. Twin Screw Extruder 3. Profiles Dies 4. Saw for profile cutting 5. Welding Machine 6. Corner Cleaning machine 7. Screwing & Drilling Machine 8. Granulating Plant for waste recycling 2
3 9. Double mitre saw 10. Mullion million machine The total value of plant and machinery on turnkey supply basis is estimated as Rs lakhs. MANAFACTURING PROCESS The basic process in manufacture of PVC door and window profiles is extrusion of the profiles. After the extrusion, the profiles are cut to the required dimensions and fabrication operations are performed. The manufacturing process comprises of following steps: 1. Compounding 2. Extrusion 3. Fabrication and finishing 4. Quality control 5. Scrap recovery RAW MATERIALS For MTS Qty-MTs Rate/MT Value Rs. Lakhs PVC Master batches & colour TOTAL Packing materials LOCATION LAND AND BUILDING Built up area-sq.ft Rent p.m.-rs per.5 per sq.ft Advance-10 months. Rs UTILITIES Three phase- KW
4 Power charges Rs. lakhs p.a For process-litres per day 0 For human consumption-litres/day 200 MANPOWER Monthly wages Total Manager Supervisor Skilled Unskilled Accounts Assistant Sales Executive Security sub total Add benefits 20% Total per month TOTAL PER ANNUM-Rs. lakhs COST OF PRODUCTION AND PROFITABILTY Assumptions Installed capacity 540 MTs of PVC door and windows per annum Capacity utilisation Year-1-60% Year -2-70% Year-3 onwards- 80% Selling price Rs.1.10 lakhs per MT Raw materials As per the details given above Packing materials As per details given above Power Rs lakhs per annum at 100% Wages and salaries Rs lakhs with increase 5% every year. Repairs and Maintenance Rs.1.20 lakh per annum with 10% annual increase 4
5 Depreciation Selling general and administrative expenses Interest on Term loan Interest on working capital Income tax Written down value method -15 % on machinery Rs.2.00 lakhs per month with 5% annual increase. 11% per annum 11 % per annum % on profits MACHINERY SUPPLIERS: 1. Battenfield Gloenco extrusion Systems Ltd, Berry Hill industrial Estate GB Droiwich /Worcestershire, England, 2. Krauss-Maffel, Krausse Muffei Strassue-2, D-8000 Munich, 3. Pavesi Off.Mec, Via Martin Della Liberta 2, , Locate Triulzi MI,Italy 4. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari East, Mumbai Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad , 7. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad Prasad Groups & Companies, Plot No GIDC Industrial Estate, Phase 1 Valva, Ahmedabad HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore
6 FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 5.00 Plant & Machinery Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC MEANS OF FINANCE Capital Term Loan COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years Installed Capacity-MTs Utilisation 60% 70% 80% 80% 80% Production/Sales-MTs Selling Price per MT-Rs lakhs Sales Value (Rs.lakhs) Raw Materials Packing Materials Power Wages & Salaries Repairs & Maintenance Depreciation Cost of Production Selling, Admin, & General exp
7 Interest on Term Loan Interest on Working Capital Total Profit Before Tax Provision for tax Profit After Tax Add: Depreciation Cash Accruals Repayment of Term loan WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials % Consumables % Finished goods % Debtors % Expenses % PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax = Sales % Profit before Interest and Tax = Total Investment % Profit after Tax = Promoters Capital % 7
8 7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries Repairs & Maintenance 1.45 Depreciation Admin. & General expenses Interest on TL Profit Before Tax (P) BEL = FC x 100 = x 80 FC +P x % of installed capacity 8
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