PROJECT REPORT

Of

GLASS BOWL MAKING UNIT

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Glass Bowl Manufacturing unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) : xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxx
Mobile xxxxxxx

5 Product and By Product : GLASS BOWL

6 Name of the project / business activity proposed : GLASSWARE'S MAKING UNIT (GLASS BOWL)

7 Cost of Project : Rs.15.1 Lakhs

8 Means of Finance
Term Loan Rs.9 Lakhs
Own Capital Rs.1.51 Lakhs
Working Capital Rs.4.59 Lakhs

9 Debt Service Coverage Ratio : 2.77

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 42%

13 Employment : 12 Persons

14 Power Requirement : 10.00 KW

Soda Lime Silica Glass, Lead

15 Major Raw materials
: Glass (Soft Glass)

16 Estimated Annual Sales Turnover (Max Capacity) : 88.47 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 8.50
Furniture & Fixtures 1.50
Working Capital 5.10
Total 15.10

MEANS OF FINANCE
Particulars Amount
Own Contribution 1.51
Working Capital(Finance) 4.59
Term Loan 9.00
Total 15.10
 GLASS BOWL UNIT

Introduction:
Glassware is defined as the articles which are made from different types of glass, such
as, soda-lime glass, lead glass, and heat resistant glass. Glassware is used for containing
food or decorative purposes. A Glass bowl is a round dish or container typically used to
prepare and serve food. The interior of a bowl is characteristically shaped like a spherical
cap, with the edges and the bottom forming a seamless curve. This makes bowls
especially suited for holding liquids and loose food, as the contents of the bowl are
naturally concentrated in its center by the force of gravity. The exterior of a bowl is most
often round but can be of any shape, including rectangular. The size of bowls varies from
small bowls used to hold a single serving of food to large bowls, such as punch bowls
or salad bowls, that are often used to hold or store more than one portion of food.
Uses & Market Potential:

Use of multicolored glass lends a charming and luxurious look to kitchen utensils. Glass
utensils are absolutely classy and must possess for each contemporary home, hotel and
restaurant .The global glassware industry is positively impacted by a recent change in
buying behaviour of consumers who are increasingly favouring premium homeware
products. Moreover, the availability of trendy glassware products is favouring the overall
industry growth. Increasing disposable income of consumers from developing nations
such as China and India is resulting in strong demand for luxury and premium glassware
products. The rapid increase in the hotel and catering industry around the globe is one of
the significant factors which are propelling the growth of the glassware market. This trend
is observed after the growing popularity of dinner out among the working class of the
population segment. Market penetration of cafeterias and beverage bars is further fueling
market growth. Recent scientific studies have confirmed the benefits of using glass
utensils in terms of elimination of bacteria as these products do not have pores. This has
resulted in elevated interest from health-conscious consumers into glassware. Aesthetic
appeal of glass products is one of the parameters for consumers to consider buying them.
The soda lime glass segment expected to grow at the fastest rate of 12.4% CAGR during
the upcoming years.

Product:
GLASS BOWL

Raw Material:
1. Soda Lime Silica Glass (Soda Ash 33%, Silica Sand 66% and chemicals 1%)
produced at around 1450 degree Celsius.
2. Lead Glass (Soft Glass) in which around 24% Lead (Pb) is mixed as a raw material.
Most of the products are manufactured using Soda Lime Glass.
Manufacturing Process:

Fig. 1 – Process Flowchart

Area:
The total land required is around 1500-2000Sq.Ft.

Cost of Machines:
S No. Machine Unit Price (INR)
1. Tank Furnace 1 5,25,000/-
2. Press and blow Machine 1 3,25,000/-
Total 8,50,000/-
Power Requirement- - The estimated Power requirement is taken at 10
KWH.

Manpower Requirement– Following manpower is required:

• Skilled/unskilled worker-6
• Helper- 4
• Sales Personal and Accountant- 2

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 2.31 3.48 5.23 7.22
Add: Additions 1.51 - - - -
Add: Net Profit 2.20 3.58 4.84 6.49 7.55
Less: Drawings 1.40 2.40 3.10 4.50 5.40
Closing Balance 2.31 3.48 5.23 7.22 9.37
CC Limit 4.59 4.59 4.59 4.59 4.59
Term Loan 8.00 6.00 4.00 2.00 -
Sundry Creditors 1.26 1.46 1.66 1.90 2.15

TOTAL : 16.15 15.53 15.48 15.71 16.10

APPLICATION OF FUND

Fixed Assets ( Gross) 10.00 10.00 10.00 10.00 10.00

Gross Dep. 1.43 2.64 3.69 4.58 5.34
Net Fixed Assets 8.58 7.36 6.31 5.42 4.66

Current Assets
Sundry Debtors 2.48 3.00 3.44 3.92 4.42
Stock in Hand 3.87 4.47 5.12 5.83 6.59
Cash and Bank 1.22 0.70 0.61 0.54 0.44

TOTAL : 16.15 15.53 15.48 15.71 16.10

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 49.68 60.02 68.76 78.32 88.47

Total (A) 49.68 60.02 68.76 78.32 88.47

B) COST OF SALES

Raw Material Consumed 25.20 29.11 33.26 37.95 42.92

Elecricity Expenses 1.12 1.23 1.34 1.45 1.57
Repair & Maintenance 1.24 1.50 1.72 1.96 2.21
Labour & Wages 12.85 14.39 16.55 18.54 20.95
Depreciation 1.43 1.22 1.04 0.89 0.76
Cost of Production 41.84 47.45 53.92 60.79 68.42

Add: Opening Stock /WIP - 2.61 3.01 3.45 3.93

Less: Closing Stock /WIP 2.61 3.01 3.45 3.93 4.44

Cost of Sales (B) 39.22 47.05 53.48 60.31 67.91

C) GROSS PROFIT (A-B) 10.45 12.97 15.28 18.01 20.56

21.04% 21.61% 22.22% 22.99% 23.24%
D) Bank Interest i) (Term Loan ) 0.98 0.80 0.58 0.36 0.14
ii) Interest On Working Capital 0.50 0.50 0.50 0.50 0.50
E) Salary to Staff 4.79 5.99 6.94 7.91 8.71
F) Selling & Adm Expenses Exp. 1.99 2.10 2.41 2.74 2.83

TOTAL (D+E+F) 8.26 9.39 10.43 11.52 12.18

H) NET PROFIT 2.20 3.58 4.84 6.49 8.38

4.4% 6.0% 7.0% 8.3% 9.5%
I) Taxation - - - - 0.83

J) PROFIT (After Tax) 2.20 3.58 4.84 6.49 7.55

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 1.51 -

Reserve & Surplus 2.20 3.58 4.84 6.49 8.38
Depriciation & Exp. W/off 1.43 1.22 1.04 0.89 0.76
Increase In Cash Credit 4.59
Increase In Term Loan 9.00 - - - -
Increase in Creditors 1.26 0.20 0.21 0.23 0.25

TOTAL : 19.98 4.99 6.10 7.62 9.40

APPLICATION OF FUND

Increase in Fixed Assets 10.00 - - - -

Increase in Stock 3.87 0.60 0.65 0.71 0.76
Increase in Debtors 2.48 0.52 0.44 0.48 0.51
Repayment of Term Loan 1.00 2.00 2.00 2.00 2.00
Taxation - - - - 0.83
Drawings 1.40 2.40 3.10 4.50 5.40
TOTAL : 18.76 5.51 6.18 7.69 9.50

Opening Cash & Bank Balance - 1.22 0.70 0.61 0.54

Add : Surplus 1.22 - 0.52 - 0.09 - 0.07 - 0.10

Closing Cash & Bank Balance 1.22 0.70 0.61 0.54 0.44
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 2.61 3.01 3.45 3.93 4.44
Raw Material
(15 Days requirement) 1.26 1.46 1.66 1.90 2.15

Closing Stock 3.87 4.47 5.12 5.83 6.59

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 3.87
Less:
Sundry Creditors 1.26
Paid Stock 2.61 0.26 2.35

Sundry Debtors 2.48 0.25 2.24

Working Capital Requirement 4.59

Margin 0.51

MPBF 4.59
Working Capital Demand 4.59
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 9.00 9.00 0.25 - 9.00
Iind Quarter 9.00 - 9.00 0.25 - 9.00
IIIrd Quarter 9.00 - 9.00 0.25 0.50 8.50
Ivth Quarter 8.50 - 8.50 0.23 0.50 8.00
0.98 1.00
II Opening Balance
Ist Quarter 8.00 - 8.00 0.22 0.50 7.50
Iind Quarter 7.50 - 7.50 0.21 0.50 7.00
IIIrd Quarter 7.00 - 7.00 0.19 0.50 6.50
Ivth Quarter 6.50 6.50 0.18 0.50 6.00
0.80 2.00
III Opening Balance
Ist Quarter 6.00 - 6.00 0.17 0.50 5.50
Iind Quarter 5.50 - 5.50 0.15 0.50 5.00
IIIrd Quarter 5.00 - 5.00 0.14 0.50 4.50
Ivth Quarter 4.50 4.50 0.12 0.50 4.00
0.58 2.00
IV Opening Balance
Ist Quarter 4.00 - 4.00 0.11 0.50 3.50
Iind Quarter 3.50 - 3.50 0.10 0.50 3.00
IIIrd Quarter 3.00 - 3.00 0.08 0.50 2.50
Ivth Quarter 2.50 2.50 0.07 0.50 2.00
0.36 2.00
V Opening Balance
Ist Quarter 2.00 - 2.00 0.06 0.50 1.50
Iind Quarter 1.50 - 1.50 0.04 0.50 1.00
IIIrd Quarter 1.00 - 1.00 0.03 0.50 0.50
Ivth Quarter 0.50 0.50 0.01 0.50 -
0.14 2.00

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R
PARTICULARS I II III IV V

CASH ACCRUALS 3.62 4.80 5.89 7.38 8.31

Interest on Term Loan 0.98 0.80 0.58 0.36 0.14

Total 4.60 5.60 6.47 7.74 8.45

REPAYMENT
Repayment of Term Loan 1.00 2.00 2.00 2.00 2.00
Interest on Term Loan 0.98 0.80 0.58 0.36 0.14

Total 1.98 2.80 2.58 2.36 2.14

DEBT SERVICE COVERAGE RATIO 2.33 2.00 2.51 3.28 3.95

AVERAGE D.S.C.R. 2.77

Assumptions:

1. Production Capacity of Glass Bowl is 140 Pieces per day. First year, Capacity has
been taken @ 50%.
2. Working shift of 10 hours per day has been considered.
3. Raw Material stock and Finished goods closing stock has been taken for 15 days.
4. Credit period to Sundry Debtors has been given for 15 days.
5. Credit period by the Sundry Creditors has been provided for 15 days.
6. Depreciation and Income tax has been taken as per the Income tax Act,
1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.
8. Salary and wages rates are taken as per the Current Market Scenario.
9. Power Consumption has been taken at 10 KW.

10. Selling Prices & Raw material costing has been increased by 5% & 5%
respectively in the subsequent years
 DISCLAIM ER

The views expressed in this Project Report are advisory in nature. SAMADHAN assum e
no financial liability to anyone using the content for any purpose. All the materials and
content contained in Project report is for educational purpose and reflect the views of the
industry which are drawn from various research material sources from internet, experts,
suppliers and various other sources. The actual cost of the project or industry will
have to be taken on case to case basis considering specific requirement of the project,
capacity and type of plant and other specific factors/cost directly related to the
implementation of project. It is intended for general guidance only and must not be
considered a substitute for a competent legal advice provided by a licensed industry
professional. SAMADHAN hereby disclaims any and all liability to any party for any direct,
indirect, implied, punitive, special, incidental or other consequential damages arising
directly or indirectly from any use of the Project Report Content, which is provided as is,
and without warranties.