Business Profile Adhesive Compound – for Tile Fixing

ADOBOND
Name of Organization : To be finalize

Nature of Business : Manufacturing of adhesive bond for Tile Fixing

Business Location : XXXXXXXXXXX, Cuddalore -607XXX

Tele-coordinates : 04142-XXX (office) / 94XXXXXXXX (delivery)

Business Constitution : (Under formation)

Year of Establishment : June 2015

Lease/Rent Tenure : Five ( 5 ) Years Long

Security Deposit : Rs. 1,00,000.00 ( Rupees One lakh)

Monthly Rental Rs.25,000.0 (Rupees Twenty Five Thousand)

Investment Rs. 40,00,000.00 ( Rupees Forty Lakhs ) - Estimate

Total Area Approx. 10,000 Sq.Ft. (building 2000Sq.Ft.)

 Packaging Capacity Supplied in 10, 25 & 50 kgs.

Business Hours Manufacturing Hours - 2 Shift basis

Mode of Operation Adhesive Compounds for all type of Tiles

Number of Employees Management-2, Executive-1, General-7 : Total = 10

Average Turnover Per Day - Rs. 54,000 ; Per Month - Rs. 16,20,000

Project Profile Adhesive Compound – for Tile Fixing

Prospect

THIS INDUSTRY – is one of the unique sector that gets constant and continuous patronage,
Business Is more or less guaranteed provided the following four basic criteria is met:

 That the product is excellent in quality and life

 That the system of working and atmosphere is clean
 That the price is reasonable and affordable
 That the service is second to none

With these phenomena well entrenched in our system and approach, we are in the process of
establishing a new Manufacturing Unit at Cuddalore, one of the developing and busiest
business hub in Tamil Nadu.

Our New International Brand: ADOBOND (to be finalize)

 ADOBOND is a ready to use polymer enhanced adhesive with high performance for fixing
various types of tiles and stones for interior floor and wall applications.

ADVANTAGES:
 Excellent adhesion properties
 Single component, ready to use material
 Good bond strength with variety of substrates
 Suitable for installation of variety of tiles and stones

ADOBOND -
- A Polymer adhesive enhanced tile fixing mortar

Project Profile – Page Two

PROCEDURE & FUNCTION:

ADOBOND is a ready to use, high performance polymer enhanced adhesive for fixing various
types of tiles such as vitrified tiles, ceramic tiles and natural stones on variety of substrates like
concrete, mortar beds, masonry, etc.
USES:
ADOBOND can be used on self-levelled floors and cured cementitious screeds for internal
surfaces applications.
ADOBOND can be used on vertical surfaces due to its excellent adhesive properties.
ADOBOND is ideally suitable for fixing porous and non- porous tiles on walls.
ADOBOND can be used for installation of tiles and stones over a variety of substrates.
METHOD OF APPLICATION:
Surface Preparation: All laitance, oil, grease etc, shall be cleaned by grinding, wire brushing,
chipping, sand blasting, high pressure water jet or chemical etching. Any uneven surfaces shall
be finished level using modified mortar.
Mixing and application: The water: adhesive ratio is 1:3. The mixing shall be done gradually
by hand or with a slow speed mixer to make a smooth, uniform consistent mix. After mixing,
allow the mixture to stand for 5 minutes for it to mature. Do not add excess water. Remix the
paste before applying. Apply the mixture over the surface using the straight edge of the
notched trowel and comb the applied adhesive using the notched side of the trowel to achieve
the thickness. Proper care should be taken to ensure coverage of the tile surface for suitable
adhesion. The tile or stone shall then be pressed into the adhesive for fixing.
 PROPERTIES:
Open Time@ 300C 20 min.

Pot Life @ 300C 45min-60min

Setting Time
Initial setting 30 minutes
Final setting 300-360 minutes
Compressive Strength @ 28-
days >15 MPa
Tensile Bond Strength @ 28
days Initial > 1.8 Mpa After water immersion >1.3MPa
Tensile bond strength after 25
freeze-thaw cycles >1.5 MPa

Wet Density 1.75 – 1.85 g/cc

Note: The working time of ADOBOND depends upon the temperature and other environment conditions.

Project Profile – Page Three

COVERAGE:
ADOBOND will have coverage of 1.5- 2.0 sq. ft per kg for 3mm bed thickness. The coverage can
vary depending on the surface condition.
SHELF LIFE:
18 months in sealed bags if stored in dry conditions.

PACKAGING:
Supplied in 10, 25 & 50 kgs.

HEALTH & SAFETY:

Avoid contact with skin for prolonged period. In case of any contact with eyes, wash
immediately with plenty of water and seek medical attention.

And what’s more? We intend to give a new product ADOBOND is quality and durable – This
makes ALL the difference and the competitive edge.

Location
The proposed Manufacturing Unit t is located in Cuddalore, surrounded by an innumerous
number of Cities, Towns and Villages i.e. Pudhucherry, Nellikuppam, Panrutti, Chidambaram,
Neyveli and many more and also Capital & other big Cities are in the radius of 150 to 180kms.

The proposed Manufacturing Unit structure is a single storey building with all amenities having
a floor space of about 2,000 sq. ft. totaling some 10,000 sq. ft. in all.

Another added advantage to this location is that all the main sources of supply for the
manufacturing Unit, the Raw materials, Machineries, Aggregative Materials markets,
Manpower and others are nearby in distance.

Project Profile – Page Four

The manufacturing Unit, with a combined Building capacity of 2000Sq.Ft, and total area of
10,000Sq.ft, shall Manufacture Adhesive Compounds for various types of tiles and stones for
interior floor and wall applications. All through the day and night shift basis.

Income
The optimum income per day includes all income from Manufacturing Unit.

Sources of Income Amount in Rupees

Restaurant Per Day Per Month

ADOBOND 10Kg x 50 Bags@10.80 5,400 1,62,000

ADOBOND 25Kg x 140 Bags@10.80 37,800 11,34,000
ADOBOND 50Kg x 20 Bags@10.80 10,800 3,24,000
 Total: 54,000 16,20,000

Total Income per Month : 16,20,000

Note: The above income does not include Taxes

Project Profile – Page Five

Expenses
The optimum expenses per day for operating the Manufacturing Unit include the FIXED and
VARIABLE costs.

Avenues of Expenses Amount in Rupees

Fixed Costs Per Day Per Month

Manufacturing Unit rent -- 25,000

Staff Salary ( 10 Members ) -- 1,50,000
Electricity Charges -- 75,000

Total: 2,50,000
Note: The above costs include provision for marginal increase to accommodate variations in
staff salary and electricity charges.
 Variable Costs Per Day Per Month

Materials - Cement, Sand, Adhesive & Others 15,000 4,50,000

Packaging Materials 3,000 90,000
Gas or Wood (for Heating purpose) 1,500 45,000
Telecommunication Charges 400 12,000
Fuel and Transportation Charges 2,450 73,500
Miscellaneous and Incidental Expenses 300 9,000

Total: 8,300 6,79,500

Note: The above costs include provision for purposeful increase to accommodate variation in
prices of Raw Materials and services.

Total Expenses per Month : 9,29,500

Project Profile – Page Six

Cost of Project
Description of Cost : Amount in Rupees

Security Deposit : 1,00,000

Preliminary & Pre-operative Expenses : 1,00,000
Manufacturing Unit Construction : 14,00,000
Furniture and Fittings : 1,25,000
Machinery and Equipment : 15,00,000
Contingency provision : 25,000
Working Capital : 7,50,000

Total Cost : 40,00,000

Means of Finance
Sources of Funds Amount in Rupees

Promoters Contribution : 0
Friends and Relatives : 0
Private Investors : 0
Bank Term Loan : 40,00,000

Total Funds : 40,00,000

Feasibility
Given the pleasant atmosphere, the high quality of product, the economy of price and the best
of service, aimed mainly at the highly concentrated all section of Village, Town & Cities of
TamilNadu ,India and International, and we can certainly count on a comfortable and
uninterrupted flow of business as well as growth for years to come. The following is a
conservative estimate of Cash Flow for the next five consecutive semi - annual

Project Profile – Page Seven

I II III IV V

Six Months Apr - Sep Oct - Mar Apr - Sep Oct - Mar Apr - Sep
Year 2015 2015/16 2016 2016/17 2017

1,08,
Sales / Day 54,000 54,000 81,000 000 1,08,000
32,40,00
Sales / Month 16,20,000 16,20,000 24,30,000 0 32,40,000
18,59,00
Expenses 9,29,500 9,29,500 13,94,250 0 18,59,000
13,81,00
Income 6,90,500 6,90,500 10,35,750 0 13,81,000

Expenses : Computed at 60% of Monthly Sales – on the higher end

Income : Computed at 40% of Monthly Sales – on the lower end

Even at very conservative estimate, a daily turnover of Rs. 54,000 is easily attainable as per our
project which is turn translate into a comfortable margin of Rs.6,90,500 per month, Net Returns
– after all expenses – at a rock bottom computation of 40 % on the sales.

With the winning combination of the Ambiance, Quality, Price and Service of our organization,
the competition that prevails in the present market are in comparison to us, can be comfortably
warded off as almost ‘negligible’.

In today’s customer oriented market, especially the adhesive compound for Tiles manufacturing
industry, the existence or absence of these four factors determine the success or failure of any
business. Hence our integrity and conviction shall lead to our success.

Organization
Modern day business demands professionalism in everything that we do and project.

For all practical purpose and convenience of professional management, the promoters of the
project can be decide to incorporate the organization as a partnership or a private limited
company, which shall be run by a Promoters (Board of Directors - if a Private limited) who will
have final say on all affairs of the organization and matters pertaining to its day to day
operations.

With the substantial background, integrity and VISION, this organization is bound to establish a
lasting name and fame and take a commanding position over the market – thus creating a new
trend in the Adhesive compound for Tiles manufacturing Industry.

Investment & ROI Adhesive Compound – for Tile Fixing

Investment amount
The cost of Project being estimated to be around Rs. 40 Lakhs, the Means of Finance to match
the same is derived as follows:

Sources of Funds : Amount in Rupees

Promoters Contribution : 0
Friends and Relatives : 0
Private Investors : 0
Bank Term Loan : 40,00,000

Total Funds : 40,00,000

Assured Returns
As a confidence building measure towards the Investor, a Minimum Returns of 24 % per annum
on the Investment Amount is being fixed and assured.

On the other hand, the Maximum Returns to the Investor shall be 50 % of the Net Profit, after
all expenses, which is likely to work out to more than 60% per year on the Investment Amount.

Return on Investment
Taking into account the optimum sales of Rs. 54,000 per day and the returns at 40 % of sales,
the Return on Investment is computed as follows:

Sales & Profit Per Month Per Year

Sales at Rs.54,000 / day 16,20,000 1,94,40,000

Net Profit @ 40 % of Sales 6,48,000 77,76,000

Investment & ROI – Page Two

Therefore ROI is, Net Profit per Annum / Total Investment x 100

Or, 77, 76,000 / 40, 00,000 x 100 = 194.4 %

Returns to the Investor

As per the Investment Terms and Conditions, the Returns to the Investor will be 50 % of the Net
Profit computed against the total investment, which works out to 97.2 % of the Investment
Amount or Rs. 38, 88,000 per Lakhs per Annum. A Minimum Returns of 24 % per annum on the
Investment Amount Rs.9, 60,000 is being fixed and assured.

Terms and Conditions

The following are the terms and Conditions of investment in the Mess-cum-Restaurant project:

 The minimum Investment Amount is Rs. 40, 00,000 and maximum is

70, 00,000. However, this figure is subject to relaxation on a case by
case basis.
 The Investment amount carries a grace period of 3 month in
consideration of the parching of Machineries and Construction
works to be carryout at the site of the project.
 The Minimum Returns assured on the Investment Amount is 24 %
per annum and the Maximum Returns is 50 % of the Net profit
computed against the Investment Amount, which so ever is
HIGHER.
 The minimum Investment Period is 1 Year, and the Investment
Amount is not-callable during this period of time. (non subject to
Bank loan)
 The Investment Amount may be recalled by the Investor or repaid
by the promoters or extended on mutual consent after the initial
moratorium period of 1 Year.(non subject to bank loan)

Investment & ROI – Page Three

 Returns on the Investment Amount shall be declared and paid

quarterly or half yearly as so determined by the management. (non
subject to bank loan)
 The Investment and Returns are restricted only to the particular
project or unit invested and not to its expansions.
 The Investment is not transferable to any third party without the
explicit written consent of the management.
 All information pertaining to the Investment and the Investor shall
be kept in strict confidence and will not be disclosed to anyone.
 Investors are welcomed to provide their valuable advice and or
suggestions on the betterment of the project and business but will
however have no say in the management or its day to day affairs.

Above terms are only indicative & is subject final agreement between the Investor & Promoter.