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PROJEC
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This partticular pre-fe

easibility is re
egarding Mo
oulded Plastic Lunch B
Box.

The obje
ective of the
e pre-feasibility report is primarily to
t facilitate potential en
ntrepreneurss in
project id
dentification for investment and in o
order to serv
ve his objecctive; the do
ocument covvers
various aspects of the projecct concept development, start-up, marketing
g, finance and
a
ment.
managem

[We can modify the project cap

pacity and prroject cost as
a per your requirement. We can also
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prepare project
p report on any subject as per your require
ement.]

Lucknow O Office: Sidhivin

nayak Building ,
27/1/B, Gokhlley Marg, Lucknow-226001
L 1

Delhi Officce : Multi Discip

plinary Trainin
ng
Centre, Gaandhi Darshan Rajghat,
New Delhi 110002

Email : inffo@udyami.orgg.in
Contact : ++91 75260003333, 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: xxxxxxxxxx
Mobile xxxxxxx

5 Product and By Product : PLASTIC LUNCH BOX

6 Name of the project / business activity proposed : MOULDED PLASTIC LUNCH BOX UNIT

7 Cost of Project : Rs.47.22 Lakhs

8 Means of Finance
Term Loan Rs.36 Lakhs
Own Capital Rs.4.72 Lakhs
Working capital Rs.6.5 Lakhs

9 Debt Service Coverage Ratio : 2.33

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 32%

13 Employment : 12 Persons

14 Power Requirement : 40.00 HP

15 Major Raw materials : Polypropylene and Colorants

16 Estimated Annual Sales Turnover (Max Capacity) : 122.41 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 38.00
Furniture & Fixtures 2.00
Working Capital 7.22
Total 47.22

MEANS OF FINANCE
Particulars Amount
Own Contribution 4.72

Working Capital(Finance) 6.50

Term Loan 36.00

Total 47.22
 MOULDED PLASTIC LUNCH BOX

Introduction: A reusable container, usually with a handle, designed for

storing and carrying one's lunch. The lunch box, also referred to as a lunch
pail or lunch kit, is used to store food to be taken anywhere. A lunch kit
comprises the actual "box" and a matching vacuum bottle. However, the latest
culture has more often embraced the singular term lunch box, which is now
most commonly used. The lunch box has most often been used by school
children to take packed lunches or a snack, from home to school. Lunch boxes
are often brightly coloured or matte finished depending on the age of the
individuals using it. Generally two step lunch box is preferred for extra
storage.

Market Potential: Polypropylene is found to be the best to manufacture

lunch boxes, as no harmful hazards have been found on it even when used as
microwave applicable products. Almost everyone uses lunch boxes, except the
variation in the number of sets or layers. The demand for plastic lunch boxes
are high, as they are easy washable and safe for use. Moreover, they can be
prepared with attractive colours with the help of master batches and hence a
higher demand among school going kids.

Raw material: Major raw materials are as follows:

1. Polypropylene
2. Colourant

Machinery Requirement: Major machines & equipments are as follows:

S No. Description Qty. Amount
1. Injection moulding machine 1 2000000
2. Water Pump 1 50000
3. Dry colour mixer machine 1 250000
4. Scrap grinder machine 1 300000
5. Air compressor 1 250000
6. Chilling Plant/Cooling Tower 1 500000
7. Dies and other equipments Ls 450000
Total Amount 3800000

Manufacturing Process: In this injection moulding process, the cold, hard

plastic material is loaded into the machine via hopper, plasticized by heating
and then injected under pressure into a cold mould, where it sets and is then
ejected as the finished products. The three successive main stages that are
followed in the procedure of manufacturing:

 Feeding of PP (Raw material in the hopper)

 Injection Moulding Process
 Finishing of the moulded products
Area: The industrial setup requires space for Inventory, workshop or
manufacturing area, space for power supply utilities and auxiliary like
Generator setup. Also some of the area of building is required for office staff
facilities, documentation, office furniture, etc. Thus, the approximate total area
required for complete industrial setup is 2500 to 3000Sqft.

Power Requirement: The power consumption required to run all the

machinery could be approximated as 40 Hp

Manpower Requirement: There are requirement of skilled machine

operators to run the machine set. Experience quality engineers are required
for desired quality control. Some helpers are also required to transfer the
material from one work station to other. Office staffs are required to maintain
the documentation. The approximate manpower required is 12 including 1
Supervisor, 2 Plant operator, 3 unskilled worker, 2 Helper and 1 Security
guard. 3 Skilled worker including Accountant, Manager and Sales person.

Bank Term Loan: Rate of Interest is assumed to be at 11%

Depreciation: Depreciation has been calculated as per the Provisions of

Income Tax Act, 1961

Approvals & Registration Requirement:

Basic registration required in this project:

 GST Registration
 Udyog Aadhar Registration (Optional)
 Choice of a Brand Name of the product and secure the name with
Trademark if require.
 NOC from State Pollution Control Board
Implementation Schedule:
S No. Activity Time required
1. Acquisition of premises 1-2 Months
2. Procurement & installation of Plant & Machinery 1-2 Months
3. Arrangement of Finance 1.5-2 Months
4. Requirement of required Manpower 1 Month
5. Commercial Trial Runs 1 Month
Total time Required (some activities shall run 5-6 Months
concurrently)

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 5.81 10.22 15.30 20.96
Add: Additions 4.72 - - - -
Add: Net Profit 10.59 14.41 16.08 17.66 18.42
Less: Drawings 9.50 10.00 11.00 12.00 12.20
Closing Balance 5.81 10.22 15.30 20.96 27.18

CC Limit 6.50 6.50 6.50 6.50 6.50

Term Loan 32.00 24.00 16.00 8.00 -
Sundry Creditors 0.38 0.44 0.48 0.52 0.55

TOTAL : 44.69 41.16 38.27 35.97 34.23

APPLICATION OF FUND

Fixed Assets ( Gross) 40.00 40.00 40.00 40.00 40.00

Gross Dep. 5.90 10.93 15.21 18.85 21.96

Net Fixed Assets 34.10 29.08 24.79 21.15 18.04

Current Assets
Sundry Debtors 3.74 4.43 4.97 5.54 6.12
Stock in Hand 4.16 4.72 5.26 5.83 6.41
Cash and Bank 2.69 2.93 3.24 3.46 3.66

TOTAL : 44.69 41.16 38.27 35.97 34.23

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 74.81 88.70 99.48 110.72 122.41

Total (A) 74.81 88.70 99.48 110.72 122.41

B) COST OF SALES

Raw Material Consumed 16.18 18.68 20.38 22.08 23.78

Elecricity Expenses 2.95 3.25 3.55 3.84 4.14

Repair & Maintenance 7.48 8.87 9.95 11.07 12.24
Labour & Wages 17.89 19.68 23.62 27.16 31.23
Depreciation 5.90 5.03 4.28 3.65 3.11

Cost of Production 50.40 55.51 61.77 67.80 74.50

Add: Opening Stock /WIP - 3.35 3.79 4.25 4.72

Less: Closing Stock /WIP 3.35 3.79 4.25 4.72 5.22

Cost of Sales (B) 47.06 55.07 61.31 67.32 74.00

C) GROSS PROFIT (A-B) 27.76 33.63 38.17 43.40 48.41

37.10% 37.91% 38.37% 39.20% 39.55%
D) Bank Interest (Term Loan ) 3.91 3.19 2.31 1.43 0.55
ii) Interest On Working Capital 0.72 0.72 0.72 0.72 0.72
E) Salary to Staff 7.69 9.22 11.07 13.28 15.94
F) Selling & Adm Expenses Exp. 2.99 3.55 3.98 4.43 4.90

TOTAL (D+E) 15.30 16.68 18.07 19.86 22.10

H) NET PROFIT 12.46 16.95 20.10 23.55 26.31

16.7% 19.1% 20.2% 21.3% 21.5%
I) Taxation 1.87 2.54 4.02 5.89 7.89

J) PROFIT (After Tax) 10.59 14.41 16.08 17.66 18.42

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 4.72 -

Reserve & Surplus 12.46 16.95 20.10 23.55 26.31
Depriciation & Exp. W/off 5.90 5.03 4.28 3.65 3.11
Increase In Cash Credit 6.50
Increase In Term Loan 36.00 - - - -

Increase in Creditors 0.38 0.06 0.04 0.04 0.04

TOTAL : 65.96 22.03 24.42 27.23 29.46

APPLICATION OF FUND

Increase in Fixed Assets 40.00 - - - -

Increase in Stock 4.16 0.57 0.54 0.56 0.58
Increase in Debtors 3.74 0.69 0.54 0.56 0.58
Repayment of Term Loan 4.00 8.00 8.00 8.00 8.00

Taxation 1.87 2.54 4.02 5.89 7.89

Drawings 9.50 10.00 11.00 12.00 12.20
TOTAL : 63.26 21.80 24.10 27.01 29.26

Opening Cash & Bank Balance - 2.69 2.93 3.24 3.46

Add : Surplus 2.69 0.23 0.32 0.22 0.20

Closing Cash & Bank Balance 2.69 2.93 3.24 3.46 3.66
COMPUTATION OF MAKING OF PLASTIC LUNCH BOX

Item to be Manufactured Plastic Lunch Box

Manufacturing Capacity per day 1,500 Lunch box

No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum 4,50,000 Lunch box

Total Production per Annum 4,50,000 Lunch box
PLASTIC
Year Capacity LUNCH BOX
Utilisation

I 50% 2,25,000.00

II 55% 2,47,500.00
III 60% 2,70,000.00
IV 65% 2,92,500.00
V 70% 3,15,000.00

COMPUTATION OF RAW MATERIAL

Quantity of Total CostPer
Unit Unit Rate
Item Name Raw Material Annum (100%)
Polypropylene 35,000.00 Kg 65.00 22,75,000.00
Colorants 4,800.00 Kg 200.00 9,60,000.00

Total 32,35,000.00

Total Raw material in Rs lacs 32.35

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

I 50% 16.18
II 55% 18.68 5% Increase in Cost
III 60% 20.38 5% Increase in Cost
IV 65% 22.08 5% Increase in Cost
V 70% 23.78 5% Increase in Cost
COMPUTATION OF SALE
Particulars I II III IV V

Op Stock - 11,250.00 12,375.00 13,500.00 14,625.00

Production 2,25,000.00 2,47,500.00 2,70,000.00 2,92,500.00 3,15,000.00

2,25,000.00 2,58,750.00 2,82,375.00 3,06,000.00 3,29,625.00

Less : Closing Stock(15 Days) 11,250.00 12,375.00 13,500.00 14,625.00 15,750.00

Net Sale 2,13,750.00 2,46,375.00 2,68,875.00 2,91,375.00 3,13,875.00

Sale Price per Lunch Box 35.00 36.00 37.00 38.00 39.00

Sale (in Lacs) 74.81 88.70 99.48 110.72 122.41

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 3.35 3.79 4.25 4.72 5.22
Raw Material
(15 Days requirement) 0.81 0.93 1.02 1.10 1.19

Closing Stock 4.16 4.72 5.26 5.83 6.41

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 4.16
Less:
Sundry Creditors 0.38
Paid Stock 3.78 0.38 3.40

Sundry Debtors 3.74 0.37 3.37

Working Capital Requirement 6.77

Margin 0.75

MPBF 6.77
Working Capital Demand 6.50
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Supervisor 28,000.00 1 28,000.00
Plant Operator 22,000.00 2 44,000.00
Unskilled Worker 14,000.00 3 42,000.00
Helper 10,000.00 2 20,000.00
Security Guard 8,000.00 1 8,000.00

1,42,000.00
Add: 5% Fringe Benefit 7,100.00

Total Labour Cost Per Month 1,49,100.00

Total Labour Cost for the year ( In Rs. Lakhs) 9 17.89

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager 25,000.00 1 25,000.00
Accountant cum store keeper 20,000.00 1 20,000.00

Sales 16,000.00 1 16,000.00

Total Salary Per Month 61,000.00

Add: 5% Fringe Benefit 3,050.00

Total Salary for the month 64,050.00

Total Salary for the year ( In Rs. Lakhs) 3 7.69

COMPUTATION OF DEPRECIATION
Plant &
Description Land Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance Leased - - -
Addition - 38.00 2.00 40.00
- 38.00 2.00 40.00
- -
TOTAL 38.00 2.00 40.00
Less : Depreciation - 5.70 0.20 5.90

WDV at end of Ist year - 32.30 1.80 34.10

Additions During The Year - - - -
- 32.30 1.80 34.10
Less : Depreciation - 4.85 0.18 5.03

WDV at end of IInd Year - 27.46 1.62 29.08

Additions During The Year - - - -
- 27.46 1.62 29.08
Less : Depreciation - 4.12 0.16 4.28
WDV at end of IIIrd year - 23.34 1.46 24.79
Additions During The Year - - - -
- 23.34 1.46 24.79

Less : Depreciation - 3.50 0.15 3.65

WDV at end of IV year - 19.84 1.31 21.15
Additions During The Year - - - -
- 19.84 1.31 21.15
Less : Depreciation - 2.98 0.13 3.11
WDV at end of Vth year - 16.86 1.18 18.04
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 36.00 36.00 0.99 - 36.00
Iind Quarter 36.00 - 36.00 0.99 - 36.00
IIIrd Quarter 36.00 - 36.00 0.99 2.00 34.00
Ivth Quarter 34.00 - 34.00 0.94 2.00 32.00
3.91 4.00
II Opening Balance
Ist Quarter 32.00 - 32.00 0.88 2.00 30.00
Iind Quarter 30.00 - 30.00 0.83 2.00 28.00
IIIrd Quarter 28.00 - 28.00 0.77 2.00 26.00

Ivth Quarter 26.00 26.00 0.72 2.00 24.00

3.19 8.00
III Opening Balance
Ist Quarter 24.00 - 24.00 0.66 2.00 22.00

Iind Quarter 22.00 - 22.00 0.61 2.00 20.00

IIIrd Quarter 20.00 - 20.00 0.55 2.00 18.00
Ivth Quarter 18.00 18.00 0.50 2.00 16.00
2.31 8.00
IV Opening Balance
Ist Quarter 16.00 - 16.00 0.44 2.00 14.00
Iind Quarter 14.00 - 14.00 0.39 2.00 12.00

IIIrd Quarter 12.00 - 12.00 0.33 2.00 10.00

Ivth Quarter 10.00 10.00 0.28 2.00 8.00
1.43 8.00
V Opening Balance
Ist Quarter 8.00 - 8.00 0.22 2.00 6.00
Iind Quarter 6.00 - 6.00 0.17 2.00 4.00
IIIrd Quarter 4.00 - 4.00 0.11 2.00 2.00
Ivth Quarter 2.00 2.00 0.06 2.00 -
0.55 8.00

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 16.49 19.43 20.36 21.31 21.53

Interest on Term Loan 3.91 3.19 2.31 1.43 0.55

Total 20.39 22.62 22.67 22.74 22.08

REPAYMENT
Repayment of Term Loan 4.00 8.00 8.00 8.00 8.00
Interest on Term Loan 3.91 3.19 2.31 1.43 0.55

Total 7.91 11.19 10.31 9.43 8.55

DEBT SERVICE COVERAGE RATIO 2.58 2.02 2.20 2.41 2.58

AVERAGE D.S.C.R. 2.33

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 40
Load Factor 0.7460
Electricity Charges per unit 7.50
Total Working Days 300
Electricity Charges 5,37,120.00

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
No of Working Hours 0.3 Hour per day
Total no of Hour 90
Diesel Consumption per Hour 8
Total Consumption of Diesel 720
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 0.47
Add : Lube Cost @15% 0.07
Total 0.54

Total cost of Power & Fuel at 100% 5.91

Year Capacity Amount

(in Lacs)

I 50% 2.95
II 55% 3.25
III 60% 3.55
IV 65% 3.84
V 70% 4.14
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume 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.