Free Essay

Packed Drinking Water

In: Business and Management

Submitted By sobanabai
Words 1136
Pages 5
PACKAGED DRINKING WATER
QUALITY AND STANDARDS PRODUCTION CAPACITY : : As per BIS specifications 45 lakh bottles of 1L capacity/annum

1.0 PRODUCT AND ITS APPLICATIONS
Most of the water borne diseases emanate from unclean water. Packaged drinking water ensures safe, clean, potable water for human consumption.

2.0 MARKET POTENTIAL
Though a large number of manufacturers have recently taken up production of packaged drinking water, yet there exists a wide gap between demand and supply. A number of units can be set up in North Eastern Region to meet the local demand in institutions, hotels, restaurants, offices, tourist and household.

3.0 BASIS AND PRESUMPTIONS
a) b) c) d) e) f) g) The unit will work for 300 days per annum on single shift basis. The unit can achieve its full capacity utilization during the 2nd year of operation. The wages for skilled workers are taken as per prevailing rates in this type of industry. Interest rate for total capital investment is calculated @ 12% per annum. The entrepreneur is expected to raise 20-25% of the capital as margin money. The unit would construct its own building. Costs of machinery and equipment are based on average prices of machinery manufacturers.

4.0 IMPLEMENTATION SCHEDULE
Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below: s s s s s

Scheme preparation and approval SSI provisional registration Sanction of financial supports etc. Installation of machinery and power connection Trial run and production

: : : : :

01 month 1-2 months 2-5 months 6-8 months 01 month

5.0 TECHNICAL ASPECTS
5.1 Location The plant can be located at any suitable place where availability of clean water, power, PET bottles and market access is ensured.

257

5.2 Process of Manufacture The flow chart of the process is as follows: Raw water from Source â Raw Water Storage â Raw Water Lifting Pump â Sand Filter â Activated Carbon Filter â Base Exchange Softener â Ultraviolet Disinfection â Micro Filteration System â High Pressure Pump System â Desalting â Mixing â Storage of Treated Water â Polishing Filteration â UV Disinfection System â Filling, Sealing & Capping M/C 5.3 Quality Control and Standards : As per BIS requirements

258

6.0 POLLUTION CONTROL
There is no major pollution problem associated with this industry except for disposal of waste water which should be managed appropriately. The entrepreneurs are advised to take “No Objection Certificate” from the State Pollution Control Board.

7.0 ENERGY CONSERVATION
Suitable measures shall be taken to conserve electricity.

8.0 PRODUCTION CAPACITY
Quantity Installed capacity Optimum capacity utilization Working days Manpower Utilities Motive Power Water : : : : : : : 45 lakh litre/annum (15,000 L/day) 20,000 L/day 70% 300/annum (3 shifts) 18 40 kW 25 kL/day

9.0 FINANCIAL ASPECTS
9.1 9.1.1 Fixed Capital Land & Building Land 2000 sq.m. Built up Area 700 sq. m. Total cost of Land and Building 9.1.2 Machinery and Equipment Description UF based purification system (Sand filter, chlorination unit, UF membranes, sterlisation unit, SS silverisation unit, skid, electronic doser, ozone generator, water collection tanks, Quality control laboratory, deep borewell, deliveray van Erection and electrification @ 10% of machinery cost Office furniture & fixtures Total 9.1.3 Pre-operative Expenses Amount (Rs. lakh) Amount (Rs. lakh)

:
: :

1.50 24.50 ——— 26.00

:

28.00

:

2.80

:

1.20 ———32.00

259

Consultancy fee, project report, deposits with electricity department etc. 9.1.4 Total Fixed Capital (9.1.1+9.1.2+9.1.3) 9.2 9.2.1 Recurring expenses per annum Personnel Designation Factory Manager Production Manager/Chemist Supervisory staff Office Assistant Skilled workers Unskilled workers Perquisites @ 10% Total 9.2.2 : —— 18 No. 1 1 6 2 4 5

:

3.00

:

61.00

Salary Per month 6,000 5,000 4,000 3,500 2,500 2,000

Amount (Rs.lakh) 0.72 0.60 2.88 0.84 1.20 1.20 7.44 0.76 —— 8.20

Raw Material including packaging materials Particulars • • • Pet bottles including caps, labels, 1L size Chemicals Corrugated boxes bottles Total: Qty.(MT) 45 lakh -LS1,88,000 Rate 3.60 each -LSRs. 20/24 Amount (Rs.lakh) 162.00 006.00 037.60

------

-------

205.60 Amount (Rs. lakh) 4.92 0.28 ———— 5.20 Amount (Rs. lakh)

9.2.3

Utilities Power 180,000 kW Water 25 kL/day Total:

9.2.4

Other Contingent Expenses

260

Repairs and maintenance@10% Consumables & spares Transport & Travel Publicity Postage & stationery Telephone Insurance Total: 9.2.5 Total Recurring Expenditure (9.2.1+9.2.2+9.2.3+9.2.4) 9.3 Working Capital Recurring Expenditure for 3 months 9.4 Total Capital Investment Fixed capital (Refer 9.1.4) Working capital (Refer 9.3) Total:

3.20 1.20 0.40 0.05 0.08 0.13 0.44 ———— 5.50 Amount (Rs. lakh) 224.50

56.13 Amount (Rs. lakh) 61.00 56.13 ———— 117.13

10.0 FINANCIAL ANALYSIS
10.1 Cost of Production (per annum) Recurring expenses (Refer 9.2.5) Depreciation on building @5% Depreciation on machinery @10% Depreciation on furniture @20% Interest on Capital Investment @12% Total: 10.2 Sale Proceeds / Annual turnover Item Qty. (MT) 45 lakh Rate per bottle 6.00 Amount (Rs. lakh) 270.00 Amount (Rs. lakh) 224.50 1.23 3.08 0.19 14.00 ———— 243.00

Sale of packaged drinking Water in PET bottles cap. 1L, packed in cartons of 24 bottles each

———— 270.00

261

10.3

Net Profit per year = Sales – Cost of production = 270 – 243 = Rs. 27 lakh

10.4

Net Profit Ratio = Net profit X 100 Sales = 27X 100 270 = 10%

10.5

Rate of Return on Investment = Net profit X 100 Capital Investment = 27X 100 117.13 = 23%

10.6

Annual Fixed Cost All depreciation Interest 40% of salary, wages, utility, contingency Insurance Total:

Amount (Rs. Lakh) 4.50 14.00 7.56 0.44 ———— 26.50

10.7

Break even Point = Annual Fixed Cost X 100 Annual Fixed Cost + Profit = 26.50 X 100 26.50 +27 = 49.5%

262

11.0ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS
Sonalifabs 71, Biren Roy Road (West) Kolkata – 700 061 Enviro Tech Utility, 32A, Main Patel Nagar Road, Opposite Wings Show Room West Patel Nagar New Delhi – 110 008 Watrion Water and Filter Engg. Pvt. Ltd. 1, Harsivan Apartment, Ground Floor (Behind Canara Bank) West J.P.Road, Andheri (West) P.B.No. 7372 Mumbai – 400 059 Rital Agencies 55 III Main Road, Gandhi Nagar, Chennai – 600 020 Ion Exchange India Ltd. Ticcon House Dr. E.Houses Road, Mahalaxmi, Mumbai – 400 011 Alpha Engineering 158, Pocket E-20, Sector-II Rohini, Delhi – 110 085

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