PAPER CUPI. PRODUCT AND ITS USES This project profile envisages the use of drinking Tea and Cool Drinks. The paper cup finds extensive use in railways, Hotels, household appliances, domestic applications. The product ranges from 150 ml to 300 ml, this manufacturing activity may well be set-up as small-scale units. As there is a good production of instead of plastic cups, weight less as well as easy to carry railway Tea vendors, no environment pollution, increase the demand of paper cups, user customer are to be encouraged in the modern days.MARKET: Because the paper cup industry is in a boom, the requirement of drinking items like Tea, coffee, Cool Drinks for railways, Hotels, household appliances, domestic applications as well as for replacement of plastic cups, Glass items. There is a tremendous requirement of day-to-day life. II. MARKET POTENTIALIII. PRODUCTION TARGETS (Per Annum) Quantity 56,43,000 Nos Value Rs. 29,18,000IV. BASIS & PRESUMPTIONS1. Single shift of 8 hours a day, 25 days a month and 300 days in an year is presumed. Efficient machines and workers are also presumed.2. Minimum 6 month period is considered for achieving full capacity utilization3. Labour rates are as per the prevailing rates.4. An average interest rate of 15% is considered.5. The estimates are drawn for a production capacity generally considered techno-economically viable for model type of manufacturing activity.6. The information supplied is based on a standard type of manufacturing activity viable for model type of manufacturing activity.7. The information supplied is based on a standard type of manufacturing activity utilising conventional techniques of production at optimum level of performance.8. Costs in respect of machinery and equipment, raw materials and the selling prices of the finished products etc. are generally prevailing at the time of preparation of the project profiles and may vary depending upon various factors.9. Whereas some names of manufacturers, suppliers of machinery and equipment, raw materials etc. are indicated at the end of the profile, those are by no means exclusive or exhaustive.V. IMPLEMENTATION SCHEDULE Normally six months are required for the complete implementation of the project, including machinery erection, raw materials procurement etc. VI. PRODUCTION DETAILS AND PROCESS OF MANUFACTURE The process of manufacture consists of the following operations.

The process of manufacturing Poly coated paper purchased from market then cut in the required sizes, fabricate outer shell then put in the bottom mould pressed and pasting and keep it in the final paper cup mould. After making the cup checked random pieces for customer requirement. Then packing by plastic cover in 100 paper cups in a set.VII. LAND & BUILDINGLand 250 sq.m. }} Rented Rs. 5,000 p.m. Building 150 }VIII. MACHINERY & EQIUPMENTSl.No.DescriptionNo.Rs.

1Full Automatic Operation of Paper cup Machine and other assembly18,50,000

2Dyes and Moulds L.S.50,000

3Office equipments and furniture-50,000

4Erection and electrification 10% of the cost of machinery-10,000

Total9,60,000

Pre operative expenses10,000

Total9,70,000

IX. STAFF AND LABOUR (Per Month)Sl.No.DescriptionNos.Salary (Rs.)

1Manager15,000

2Production Supervisor13,000

3Accountant-cum-storekeeper12,500

4Watchman-cum-peon 11,500

5Skilled Workers 25,000

6Unskilled Workers 610,800

Total27,800

Perquisites 15%4,170

Total31,970

Say32,000

X. RAW MATERIALS (Per Month)1Special type of paper (Poly coated paper) 2 Tones @ Rs.6, 000/-1,20,000

2Printing chemicals and DyesL.S.5,000

3Packing MaterialL.S.5,000

Total1,30,000

XI. UTILITIES (Per Month) 1Power 3000 units @ Rs.3.80/- 11,400

2Water 300

Total11,700

XII. OTHER EXPENSES (Per Month)1Postage and Stationer 500

2Telephone500

3Consumable Stores1,500

4Repair and Maintenance500

5Transport Charges1,000

6Insurance500

7Misc. Expence500

Total5,000

XIII. WORKING CAPITAL FOR THREE MONTHS1Salary & Wages32,100 x 396,000

2Raw Materials1,30,000 x 33,90,000

3Utilities11,700 x 335,100

4Other expenses 5,000 x 315,000

Total1,78,700 5,36,100

XIV. TOTAL CAPITAL INVESTMENT1Fixed capital 9,60,000

2Working Capital5,36,100

Total14,96,100

MACHINERY UTILIZATION The whole operation of Tea cup and Cool Drink Cups making process is involved simultaneously. So the machine utilization has been taken 75% per day on single shift.XV. COST OF PRODUCTION (Per Annum)1Total Recurring Expenditure21,44,400

2Depreciation on machinery @ 10%on 8,50,00085,000

3Depreciation on Moulds/Dies @ 25% on 65,00012,500

4Depreciation on Office Equipment @ 20% on 50,00010,000

5Interest on total capital @ 15% on14, 96, 1002,24,400

Total24,76,300

XVI. TOTAL SALES (Per Annum) Annual production of paper cups 150 ml (Tea cup) 300 ml (cool Drink cup) Saleable materials 59,40,000 Nos After allowing 5% rejection 2,97,000 Nos56,43,000 Nos XVII. PROFITABILITY (Per Annum)Profit 27,00,000 24,64,350= 2,35,650Net Profit Ratio : Net profit x 100 / Turn over = 2,35,650 x 100 / 27,00,000= 8.92%Rate of Return: Net profit x 100 / Total Investment= 2,35,650 x 100 / 8,18,900= 28.78%XVII. FIXED COSTDepreciation of Machinery 28,500/-Interest on total investment 98,250/-Rent 48,000/-40% on salary and wages 1,78,100/-40% of Other expenditure 36,000/-3,88,850/-B.E.P. Fixed Cost x 100 / Fixed Cost + Profit= 3,88,850 x 100 / 3,88,850+ 2,35,6503,88,850 x 100 / 6,24,500= 57.37%XIX. NAMES AND ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS1. M/s. J.K.Enterprises,62/173, Thiruvalluvar salai,Alwarpet, Chennai.2. M/s. Jayveer Traders,171-D, Raj Building, Thoddarayan koil street,Kattoor, Coimbatore, Tamil nadu.3. M/s. Rockford Business Links,K-120/6, Bougain villa,Anna nagar East,Chennai.XX. NAMES AND ADDRESSES OF RAW MATERIAL SUPPLIERS1. M/s. Jagdish Fine Arts,4/687/A, Husain Colony,Sivakasi, Tamil Nadu.2. M/s. Vidya Laminators Private Limited,112/236, Swaroop Nagar,Kanpur, Uttar Pradesh.3. M/s. Lampack Paper Products,A-1, Industrial Estate,Visakapatnam, Andrapradesh.4. M/s. Kamakshi Lamipack private Limited,101, Sidco Aiema Tower,Ist Main Road, Industrial Estate,Ambattur, Chennai.