Brief Project Report
Brief Project Report
BRIEF DETAILS OF THE PROJECT
Name of the Directors
Location of Entity
Products & Services of Manufacturing of steel tube, tube engineering like
the Entity bending welding cutting.
Project Cost of the Land: 100.00
Entity (In Lakhs) Building: 45.50
Equipment & Machinery: 50.50
Others: 5.00
Total 201.00
Source of Finance for Own Contribution: 110.00 Lakhs
the Project: Term Loan from Bank: 91.00 lakhs
Debt Equity Ratio of 66%
Investment
Break Even Percentage 50.89%
Break Even Sales 113.48 Lakhs
Proposed Place of 2 Acres in Harohalli industrial area, for advantage of
Location proximity to our direct customers
OUR ACTIVITY
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Brief Project Report
This enterprise is promoted to process high quality steel into forming
various steel profiles like steel tubes and open section profiles which
are used in the Automobile, Fabrication, Engineering, Construction,
Textile, Architectural, Railway, Infrastructural use.
The input raw material shall be brought from various reputed steel
manufacturing companies like TATA, SAIL, JSW and also at times shall
be imported, the basic raw material would be steel coils of various
thickness, grades, coating shall be brought as and when required.
The enterprise shall also be installing raw material preparation plant i.e.
slitting machine so that the dependency on other suppliers for this
process is not there and continues flow of raw material means lower
cost of production.
The enterprise has plans to supplement the local market in the
exclusive range. The wide range of sizes and different customized
lengths shall give the enterprise an upper hand when compared to the
existing manufacturers.
PROMOTER
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Brief Project Report
This company would be led into business with skills and leadership of
Sri. Dhirendra Sankhla aged 33 years and Abhimanyu Sankhla aged 27.
The promoter has a well-experienced background in this business for
over 11 years. His varied knowledge of market and trends will be the
foundation of this enterprise.
The promoter proposes to upgrade manufacturing techniques
constantly with the latest technology in process and machinery. The
company has already booked clients for their associates in coming days
both in INDIA and ABROAD.
The promoter has experience in both manufacturing as well as the sales
of the prosed products to be manufactured by the company.
PRODUCTS
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Brief Project Report
SLITTING OF COILS
STEEL TUBE
COLD ROLL PROFILES
PROCESS
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Brief Project Report
The main process shall be slitting of raw material of various sizes
depending on the customers requirement and then further sending
them to steel tubes mills.
In the steel tube mill the steel coils are then fed in to the line which
runs at about 60mtrs/min and these steel are progressively shaped to
form the desired shape depending on the tool design and are welded
online by a process known as ELECTRIC RESISTANCE WELDING further
these tubes once welded will be passed through series of rolls to
ultimately give them the desired shape.
After the tubes are made they are then dipped in RPO (Rust Preventive
Oil) to protect their surface from rusting and after which the company’s
quality department checks them before they can finally be stored or
dispatched to the client as the case may be.
These products are also at times cut and bent as per customers’
requirement, which is downward vertical integration, and the company
plans to do this very soon after its production.
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Brief Project Report
MACHINERY
EOT Cranes: Knows as Electric operated travel cranes for handling
our raw material and finished goods.
Slitting Machine: These machines will be used for slitting our raw
material to the desired sizes required; it’s basically a preparation
of raw material that will be further used to make the end product.
Tube Mill: This is the machine that will be used to make the final
product i.e. steel tubes, these machines consists of many ancillary
machines’ like welders, DC motors, gears boxes, cut of machines
etc.
Conti….
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Brief Project Report
Lath machines: These machines will be used for maintenance of
the tube mill and the slitting machines, mainly used for R&N and
the maintenance department.
Diesel Generator: Shall be used for alternate power source when
there is short fall in power by the KEB or our internal transformer
break down, it shall serve as a backup power.
General shop floor equipment’s like, compressors, welding
machines, weighting scales, tools and allied equipment’s etc.
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Brief Project Report
POWER AND WATER
Power required is about 200 KVA, and it would be sourced from KPTCL
and a standby Genset of 75 KVA capacity will be installed. Water
requirement of about 200 liter a day and is proposed to be met by both
KIADB supply scheme and private suppliers.
HUMAN RESOURCES
Managerial – 2
Supervisors – 2
Skilled assistants – 25
Un-skilled – 17
Administrative staff – 3
Unskilled helpers – 10
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Brief Project Report
PROJECTED REVENUES AND EXPENSES
Revenues (In Lakhs)
Sl. No. Particulars 1st Year 2nd Year 3rd Year
1 Slitting Job Work 1.00 1.25 1.45
2 Regular Steel Tubes 127.00 140.05 170.88
3 Special Steel Tubes 90.00 92.00 95.00
4 Cutting and Bending 5.00 6.00 7.50
TOTAL 223.00 239.30 274.83
Expenses (In lakhs)
Sl. No. Particulars 1st Year 2nd Year 3rd Year
1 Cost of production 94.65 101.00 109.50
2 Intrest on capital 13.35 14.00 14.25
3 Administrative Exp 50.00 55.00 58.50
TOTAL 158.00 170.00 182.25
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Brief Project Report
PROJECTION OF PERFORMANCE (IN LAKHS)
Sl. No. Particular 1st Year 2nd Year 3rd Year
1 Total Revenue from sales 223.00 235.30 274.83
2 Cost of Production 94.65 101.00 109.50
Add: Opening Stock 0.00 3.50 5.00
Less: Closing Stock 3.50 5.00 6.25
3 Actual Cost of Production 91.15 99.50 108.25
4 Gross Profit 131.85 135.80 166.58
5 Intrest on Capital 13.35 14.00 14.25
6 Salaries & Wages 20.00 23.00 24.00
7 Admn & Misc Exp 30.00 32.00 34.50
8 Profit before tax 68.50 66.80 93.83
9 Net Profit after tax
(@ notional rate of 25%) 54.80 53.44 75.06
10 Depreciation 3.75 4.25 5.00
Net Cash Accruals 58.55 57.69 80.06
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Brief Project Report
BREAK EVEN ANALYSIS
For First year (In Lakhs)
Particulars 1st Year
Fixed Cost
Wages & Labour 20.00
Admn & Marketing Expenses 30.00
Intrest 13.35
Depreciation 3.75
Total 67.10
Variable Cost
Raw Materail 51.90
Power 13.00
Consumables 12.25
Repairs & Maintenance 2.75
Utilities 11.25
Contribution = sales – variable cost
Contribution = 131.85 (In Lakhs)
Breakeven Percentage of Sales =
Fixed cost/contribution X 100
Breakeven percentage = 50.89%
Breakeven Sales = 113.48 (In Lakhs)
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Brief Project Report
PROPOSED USE OF LAND
S.No Name of the facility Present Requirment Units
1 Office and administrative Block 750 Sq. meters
2 Tube Storage 2200 Sq. meters
3 cutting machine 1000 Sq. meters
4 Bending machine 950 Sq. meters
5 Tube mill 2800 Sq. meters
6 Vehical Parking 100 Sq. meters
7 Open area 200 Sq. meters
Total 8000 Sq. meters
TABLE OF LAND USE
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Brief Project Report
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