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 Wooden Furniture

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 Introduction
Traditionally, furniture has been made of wood. With the
industrial revolution, furniture manufactured from materials
such as steel, aluminum, glass and plastic, began to appear.
These materials may have revolutionized the furniture industry,
but wood is undeniably a staple material in furniture
manufacturing. Wood is, of course, a long-lasting and robust
material and is the perfect choice for anyone looking for
longevity from their furniture. Wooden furniture can also go a
long way to creating a sense of the natural world indoors.

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 Wooden furniture is used for articles of daily use in dwelling
house, place of business, public buildings and includes items
such as chairs, tables, beds, safes, sofa sets, Almirahs cabinets,
etc. are made of wood.

The advantages of wooden furniture are undeniable. Combine a

piece of wood furniture to furniture made from steel or glass and
the natural beauty of the wood will add warmth and character to
any room.

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 Strength and Durability
Wood furniture is extremely resilient and requires very little
maintenance. Wood is a long-lasting natural material that can
stand constant abuse, whether it's spills in the kitchen or
scratches in the dining room. Solid wood furniture can last for
generations with minimum care.

Ease of Maintenance
Wood furniture is nearly effortless to maintain. Simply wipe the
surface of the wood chair parts with a wood cleaner on a regular
basis. Do not allow water or dust to settle on your tables, chairs
or armoires for extended periods.

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 A Decor Staple
Adding a piece of wood furniture to a room will completely
change its look and feel. Wood furniture offers elegance, charm
and sophistication to any room.

Modifiable
The beauty of wood furniture is that it can be changed over
time to give it a second, third or fourth life. By sanding and
staining, or painting, you can refinish wood furniture and give
it an entirely new look.

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 Market Outlook
India is a land of wonderful and marvelous artistic work of wood.
The rich handicraft and beautiful traditional attributes of art
and design have established a reputation of Indian Furniture
Industry in the nation and worldwide.

Furniture refers to the movable objects that support various

human activities such as seating, eating and sleeping. They are
also used to hold objects at a convenient height for work or to
store things. Furniture is a product of design and it is also
considered as a form of decorative art.

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 The popularity of traditional furniture has strengthened the
demand for wood in the manufacturing of furniture in India.
Over the past few years, the utilization of wooden goods in home
has increased as people have started using wood for furnishing
cupboards, decorating and for other purposes. Apart from this,
the demand for engineered wood furniture is rising in metro
cities such as Delhi, Mumbai, Bangalore and other major cities.
The reason behind this is the rising popularity of ready to
assemble home furniture in these cities. The availability of
engineered wood furniture through various distribution channels
provides ease to the customer to buy furniture products.

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 The country’s furniture market is projected to cross USD32
billion by 2019. The country’s furniture market is expected to
grow at a rapid pace due to rising disposable income, expanding
middle class and growing number of urban households. In
addition, the anticipated rise in tourism and hospitality sectors
is also expected to spur the furniture demand in the country
through 2019. Western and Southern region would continue to
be the leading revenue generators due to expanding distribution
network of furniture manufacturers in these regions. Uttar
Pradesh, Kerala, Punjab, West Bengal and Andhra Pradesh are
the major suppliers of wood, which is the most widely used raw
material in the country’s furniture market.

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 Wooden furniture is expected to continue its dominance in the
Indian furniture market. Home furniture market is expected to
witness fastest growth over the next five years, followed by
office and institutional segments

Wooden furniture accounts for US$ 5,358 million. (US$ 852

million) of this (wooden furniture) is imported and imports are
growing at 50 to 60 per cent every year. India was the largest
furniture importer in the world, with a 19 per cent share in the
furniture imports worldwide. A total of 10, 476 importers
shipped furniture to India during this period, mainly from Italy,
Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines
and Japan.

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 The furniture sector in India makes a marginal contribution to
the Gross Domestic Product (GDP), representing about 0.5 per
cent of the total GDP.

The global furniture market can be broadly categorized into

four categories - domestic furniture, office/corporate furniture,
hotel furniture and furniture parts. Globally, domestic furniture
accounts for 65 per cent of the production value, whilst
corporate/office furniture represents 15 per cent, hotel
furniture 15 per cent and furniture parts 5 per cent.

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Cost Estimation:
Capacity: 7500 Pcs. /Annum

Plant and Machinery cost: 13.00 Lakhs

Rate of Return (ROR): 46.00 %

Break Even Point (BEP): 38.00 %

Cost of Project: 118.00Lakhs

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Major Queries/Questions Answered in the Report?

1. What is Wooden Furniture Manufacturing

industry ?

2. How has the Wooden Furniture Manufacturing

industry performed so far and how will it perform
in the coming years ?

3. What is the Project Feasibility of Wooden

Furniture Manufacturing Plant ?

4. What are the requirements of Working Capital for

setting up Wooden Furniture Manufacturing
plant?

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5. What is the structure of the Wooden Furniture
Manufacturing Business and who are the
key/major players ?

6. What is the total project cost for setting up Wooden

Furniture Manufacturing plant ?

7. What are the operating costs for setting up Wooden

Furniture Manufacturing Project ?

8. What are the machinery and equipment

requirements for setting up Wooden Furniture
Manufacturing plant ?

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9. Who are the Suppliers and Manufacturers of Plant
& Machinery for setting up Wooden Furniture
Manufacturing plant ?

10. What are the requirements of raw material for

setting up Wooden Furniture Manufacturing plant?

11. Who are the Suppliers and Manufacturers of Raw

materials for setting up Wooden Furniture
Manufacturing plant ?

12. What is the Manufacturing Process Wooden

Furniture?

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13. What is the total size of land required for setting up
Wooden Furniture Manufacturing plant ?

14. What will be the income and expenditures for

Wooden Furniture Manufacturing Business ?

15. What are the Projected Balance Sheets of Wooden

Furniture Manufacturing Project?

16. What are the requirement of utilities and

overheads for setting up Wooden Furniture
Manufacturing plant?

17. What is the Built up Area Requirement and cost for

setting up Wooden Furniture Manufacturing
Business?

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18. What are the Personnel (Manpower)
Requirements for setting up Wooden Furniture
Manufacturing Business?

19. What are Statistics of Import & Export for

Wooden Furniture?

20. What is the time required to break-even of

Wooden Furniture Manufacturing plant?

21.What is the Break-Even Analysis of Wooden

Furniture Manufacturing Business?

22.What are the Project financials of Wooden

Furniture Manufacturing plant?

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23. What are the Profitability Ratios of Wooden
Furniture Manufacturing plant?

24. What is the Sensitivity Analysis-Price/Volume of

Wooden Furniture Manufacturing Business?

25. What are the Projected Pay-Back Period and

IRR of Wooden Furniture Manufacturing plant?

26. What is the Process Flow Sheet Diagram of

Wooden Furniture Manufacturing project?

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27. What are the Market Opportunities for setting
up Wooden Furniture Manufacturing plant?

28. What is the Market Study and Assessment for

setting up Wooden Furniture Manufacturing
plant?

29. What is the Plant Layout for setting up Wooden

Furniture Manufacturing Business?

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Table of Contents
of the
Project Report

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1. PROJECT LOCATION

1.1. CITY PROFILE & GEOTECHNICAL SITE CHARACTERIZATION

1.1.1. General
1.1.2. Map
1.1.3. Climate & Rainfall
1.1.4. Transportation and Communications

2. ECONOMY & INDUSTRY

3. INTRODUCTION

4. USES AND APPLICATIONS

5. B.I.S. SPECIFICATIONS

6. MARKET SURVEY

7. EXPORT & IMPORT: ALL COUNTRIES

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7.1. EXPORT: ALL COUNTRIES
7.2. IMPORT: ALL COUNTRIES

8. FINANCIALS & COMPARISON OF MAJOR INDIAN PLAYERS/COMPANIES

8.1. ABOUT FINANCIAL STATEMENTS OF CMIE DATABASE

8.2. PROFITS & APPROPRIATIONS
8.3. TOTAL LIABILITIES
8.4. TOTAL ASSETS
8.5. NET CASH FLOW FROM OPERATING ACTIVITIES
8.6. SECTION – I
8.6.1. Name of Company with Contact Details
8.6.2. Name of Director(S)
8.6.3. Plant Capacity
8.6.4. Location of Plant
8.6.5. Name of Raw Material(S) Consumed with Quantity & Cost
8.7. SECTION – II
8.7.1. Assets
8.7.2. Cash Flow

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8.7.3. Cost as % Ge of Sales
8.7.4. Forex Transaction
8.7.5. Growth in Assets & Liabilities
8.7.6. Growth in Income & Expenditure
8.7.7. Income & Expenditure
8.7.8. Liabilities
8.7.9. Liquidity Ratios
8.7.10. Profitability Ratio
8.7.11. Profits
8.7.12. Return Ratios
8.7.13. Structure of Assets & Liabilities (%)
8.7.14. Working Capital & Turnover Ratios

9. EXPORT & IMPORT STATISTICS DATA OF INDIA

10. PRESENT MANUFACTURERS

11. MANUFACTURING PROCESS

12. PROCESS FLOW DIAGRAM

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13. SUPPLIERS OF PLANT & MACHINERY

13.1. COMPLETE MACHINERY SUPPLIERS

14. SUPPLIERS OF RAW MATERIAL

15. PHOTOGRAPHS/IMAGES FOR REFERENCE

15.1. RAW MATERIAL PHOTOGRAPHS

15.2. MACHINERY PHOTOGRAPHS
15.3. PRODUCT PHOTOGRAPHS

16. PLANT LAYOUT

17. QUOTATION OF PLANT, MACHINERY AND EQUIPMENTS FROM SUPPLIER

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 Project Financials
• Project at a Glance Annexure

• Assumptions for Profitability workings ………………………..1

• Plant Economics…………………………………………………..2
• Production Schedule………………………………………………3
• Land & Building……………………………………………….……4
Factory Land & Building
Site Development Expenses

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• Plant & Machinery……………………………………………..……..5
Indigenous Machineries
Other Machineries (Miscellaneous, Laboratory etc.)

• Other Fixed Assets………………………………………..........….......6

Furniture & Fixtures
Pre-operative and Preliminary Expenses
Technical Knowhow
Provision of Contingencies

• Working Capital Requirement Per Month……………………….…7

Raw Material
Packing Material
Lab & ETP Chemical Cost
Consumable Store

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 • Overheads Required Per Month and Per Annum………….…….…8
Utilities & Overheads (Power, Water and Fuel Expenses etc.)
Royalty and Other Charges
Selling and Distribution Expenses

• Salary and Wages …………………………………………....……..9

• Turnover Per Annum ……………………………………….....…10

• Share Capital…………………………………………………….....11
Equity Capital
Preference Share Capital

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 • Annexure 1 :: Cost of Project and Means of Finance

• Annexure 2 :: Profitability and Net Cash Accruals

 Revenue/Income/Realisation
 Expenses/Cost of Products/Services/Items
 Gross Profit
 Financial Charges
 Total Cost of Sales
 Net Profit After Taxes
 Net Cash Accruals

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• Annexure 3 :: Assessment of Working Capital requirements

 Current Assets
 Gross Working Capital
 Current Liabilities
 Net Working Capital
 Working Note for Calculation of Work-in-process

• Annexure 4 :: Sources and Disposition of Funds

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 • Annexure 5 :: Projected Balance Sheets

 ROI (Average of Fixed Assets)

 RONW (Average of Share Capital)
 ROI (Average of Total Assets)

• Annexure 6 :: Profitability Ratios

 D.S.C.R
 Earnings Per Share (EPS)
 Debt Equity Ratio

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 • Annexure 7 :: Break-Even Analysis

 Variable Cost & Expenses

 Semi-Variable/Semi-Fixed Expenses
 Profit Volume Ratio (PVR)
 Fixed Expenses / Cost
 B.E.P

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 • Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume

 Resultant N.P.B.T
 Resultant D.S.C.R
 Resultant PV Ratio
 Resultant DER
 Resultant ROI
 Resultant BEP

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 • Annexure 12 :: Shareholding Pattern and Stake Status
 Equity Capital
 Preference Share Capital
• Annexure 13 :: Quantitative Details-Output/Sales/Stocks
 Determined Capacity P.A of Products/Services
 Achievable Efficiency/Yield % of Products/Services/Items
 Net Usable Load/Capacity of Products/Services/Items
 Expected Sales/ Revenue/ Income of Products/ Services/
Items

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 • Annexure 14 :: Product wise Domestic Sales
Realisation

• Annexure 15 :: Total Raw Material Cost

• Annexure 16 :: Raw Material Cost per unit

• Annexure 17 :: Total Lab & ETP Chemical Cost

• Annexure 18 :: Consumables, Store etc.

• Annexure 19 :: Packing Material Cost

• Annexure 20 :: Packing Material Cost Per Unit

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 • Annexure 21 :: Employees Expenses

• Annexure 22 :: Fuel Expenses

• Annexure 23 :: Power/Electricity Expenses

• Annexure 24 :: Royalty & Other Charges

• Annexure 25 :: Repairs & Maintenance Expenses

• Annexure 26 :: Other Manufacturing Expenses

• Annexure 27 :: Administration Expenses

• Annexure 28 :: Selling Expenses

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 • Annexure 29 :: Depreciation Charges – as per Books (Total)
• Annexure 30 :: Depreciation Charges – as per Books (P &
M)
• Annexure 31 :: Depreciation Charges - as per IT Act WDV
(Total)
• Annexure 32 :: Depreciation Charges - as per IT Act WDV
(P & M)
• Annexure 33 :: Interest and Repayment - Term Loans
• Annexure 34 :: Tax on Profits
• Annexure 35 :: Projected Pay-Back Period and IRR

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 Reasons for Buying our Report:

• This report helps you to identify a profitable project for investing

or diversifying into by throwing light to crucial areas like industry

size, market potential of the product and reasons for investing in the

product

• This report provides vital information on the product like it’s

characteristics and segmentation

• This report helps you market and place the product correctly by

identifying the target customer group of the product

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• This report helps you understand the viability of the project by

disclosing details like machinery required, project costs and

snapshot of other project financials

• The report provides a glimpse of government regulations

applicable on the industry

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anticipate the industry performance and make sound business

decisions

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 Our Approach:

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Scope of the Report

The report titled “Market Survey cum Detailed Techno Economic

Feasibility Report on Wooden Furniture ” provides an insight into the
Wooden Furniture market in India with focus on uses and applications,
Manufacturing Process, Process Flow Sheets, Plant Layout and Project
Financials of Wooden Furniture project. The report assesses the market
sizing and growth of the Indian Wooden Furniture Industry. While
expanding a current business or while venturing into new business,
entrepreneurs are often faced with the dilemma of zeroing in on a
suitable product/line. And before diversifying/venturing into any
product, they wish to study the following aspects of the identified
product:

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• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period

We at NPCS, through our reliable expertise in the project consultancy

and market research field, have demystified the situation by putting
forward the emerging business opportunity in the Wooden Furniture
sector in India along with its business prospects. Through this report
we have identified Wooden Furniture project as a lucrative investment
avenue.

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Niir Project Consultancy Services (NPCS)
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Industry.
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Most Profitable Wood Furniture
Manufacturing Business Idea.

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