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
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 112.5 kgs 16 1.8 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
9. Double mitre saw 10. Mullion million machine The total value of plant and machinery on turnkey supply basis is estimated as Rs.150.00 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 540.00 Qty-MTs Rate/MT Value Rs. Lakhs PVC 567 65000 368.55 Master batches & colour 17 100000 17.01 TOTAL 385.56 Packing materials 540.00 500 2.70 LOCATION LAND AND BUILDING Built up area-sq.ft 10000 Rent p.m.-rs per.5 per sq.ft 50000 Advance-10 months. Rs 500000 UTILITIES Three phase- KW 100.00 3
Power charges Rs. lakhs p.a 22.80 For process-litres per day 0 For human consumption-litres/day 200 MANPOWER Monthly wages Total Manager 1 10000 10000 Supervisor 1 8000 8000 Skilled 6 5000 30000 Unskilled 6 3000 18000 Accounts Assistant 1 4000 4000 Sales Executive 1 5000 5000 Security 2 2000 4000 sub total 79000 Add benefits 20% 15800 Total per month 94800 TOTAL PER ANNUM-Rs. lakhs 11.38 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.22.80 lakhs per annum at 100% Wages and salaries Rs. 11.38 lakhs with increase 5% every year. Repairs and Maintenance Rs.1.20 lakh per annum with 10% annual increase 4
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 33.66 % 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, 200085, Locate Triulzi MI,Italy 4. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai 600 018. 5. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari East, Mumbai 500 072. 6. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad 382415, 7. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad 121005. 8. Prasad Groups & Companies, Plot No. 14 16 GIDC Industrial Estate, Phase 1 Valva, Ahmedabad 382445 9. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore 560 032. 5
FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 5.00 Plant & Machinery 150.00 Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC 7.41 164.91 2. MEANS OF FINANCE Capital 52.41 Term Loan 112.50 164.91 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-MTs 540 540 540 540 540 Utilisation 60% 70% 80% 80% 80% Production/Sales-MTs 324 378 432 432 432 Selling Price per MT-Rs. 1.10 lakhs Sales Value (Rs.lakhs) 356.40 415.80 475.20 475.20 475.20 Raw Materials 231.34 269.89 308.45 308.45 308.45 Packing Materials 1.62 1.89 2.16 2.16 2.16 Power 13.68 15.96 18.24 18.24 18.24 Wages & Salaries 11.38 11.94 12.54 13.17 13.83 Repairs & Maintenance 1.20 1.32 1.45 1.60 1.76 Depreciation 22.50 19.13 16.26 13.82 11.75 Cost of Production 281.72 320.13 359.10 357.44 356.19 Selling, Admin, & General exp 24.00 25.20 26.46 27.78 29.17 6
Interest on Term Loan 12.38 10.83 7.73 4.64 1.55 Interest on Working Capital 3.25 3.25 3.25 3.25 3.25 Total 321.35 359.41 396.54 393.11 390.16 Profit Before Tax 35.05 56.40 78.66 82.09 85.04 Provision for tax 11.80 18.98 26.48 27.63 28.63 Profit After Tax 23.25 37.42 52.18 54.46 56.41 Add: Depreciation 22.50 19.13 16.26 13.82 11.75 Cash Accruals 45.75 56.54 68.44 68.28 68.16 Repayment of Term loan 0.00 28.13 28.13 28.13 28.11 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 9.64 25% 2.41 7.23 Consumables 2.00 0.27 25% 0.07 0.20 Finished goods 0.50 11.74 25% 2.94 8.80 Debtors 0.50 14.85 10% 1.49 13.36 Expenses 1.00 0.50 100% 0.50 0.00 37.00 7.41 29.59 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax = 52.18 Sales 475.20 11% Profit before Interest and Tax = 89.64 Total Investment 194.50 46% Profit after Tax = 52.18 Promoters Capital 52.41 100% 7
7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 12.54 Repairs & Maintenance 1.45 Depreciation 16.26 Admin. & General expenses 26.46 Interest on TL 7.73 64.44 Profit Before Tax (P) 78.66 BEL = FC x 100 = 64.44 x 80 FC +P 143.10 100 x 100 36% of installed capacity 8