RTC Project AppraisalRTC Project Appraisal

Wax MouldWax Mould

SonySony

11stst Sem – 2006-07 Sem – 2006-07

ObjectiveObjective

To generate livelihood for one rural To generate livelihood for one rural poor family through wax mould poor family through wax mould making with an investment of Rs. making with an investment of Rs. 7,750/- that will result in a steady 7,750/- that will result in a steady monthly income of Rs. 2138/-monthly income of Rs. 2138/-

MoP & TargetMoP & Target

Number of rural beneficiaries = 1Number of rural beneficiaries = 1 Investment = Rs. 7,750/-Investment = Rs. 7,750/- Monthly income = Rs. 2138/-Monthly income = Rs. 2138/-

ScopeScope

BITS Models made out of wax to be BITS Models made out of wax to be distributed to the leaving BITSIANS distributed to the leaving BITSIANS during their farewellduring their farewell

ResponsibilityResponsibility

SonySony ShantanShantan RaghuRaghu Family in BhaasFamily in Bhaas

Why This Project?Why This Project?

An appreciable recurrent market An appreciable recurrent market potential within Pilani campuspotential within Pilani campus

Does not require major infrastructure Does not require major infrastructure & technology& technology

Revenue that can provide livelihood Revenue that can provide livelihood for one familyfor one family

Reflects the commitment of BITSIANS Reflects the commitment of BITSIANS in the welfare of rural Indiain the welfare of rural India

Does not compete with Amla Birla Does not compete with Amla Birla KendraKendra

Market PotentialMarket Potential

1000 models per year in BITS Pilani1000 models per year in BITS Pilani Has potential to include other campusesHas potential to include other campuses Has an additional market potential of Has an additional market potential of

BITSAABITSAA Scope to generate additional markets by Scope to generate additional markets by

developing newer modelsdeveloping newer models Only the market in BITS, Pilani is considered Only the market in BITS, Pilani is considered

for this proposalfor this proposal Rest of the markets will be addressed in the Rest of the markets will be addressed in the

next phasenext phase

PricePrice

The product being a novelty item a The product being a novelty item a standard price of Rs.75/- is fixedstandard price of Rs.75/- is fixed

Providing livelihood to the rural poor Providing livelihood to the rural poor is the prime consideration for fixing is the prime consideration for fixing this pricethis price

Affordability is given due Affordability is given due consideration in fixing this priceconsideration in fixing this price

ProcessProcess

Wax is melted through heatingWax is melted through heating Mould surface is coated with paraffin oil Mould surface is coated with paraffin oil

for easy removal of wax impression for easy removal of wax impression The stand is fixed to the mouldThe stand is fixed to the mould Mould is preheated for easy flow of waxMould is preheated for easy flow of wax Wax is poured into the mouldWax is poured into the mould It is kept in water for easy solidificationIt is kept in water for easy solidification Once the wax solidifies it is pulled outOnce the wax solidifies it is pulled out Extra wax is trimmedExtra wax is trimmed

Know-HowKnow-How

Amla Birla Kendra has facility, technology Amla Birla Kendra has facility, technology and expertiseand expertise

They are willing to train usThey are willing to train us Training will be for a maximum of 3 daysTraining will be for a maximum of 3 days The cost of training is Rs.150/- per dayThe cost of training is Rs.150/- per day Raw materials for training purpose will be Raw materials for training purpose will be

provided by ABKprovided by ABK It is proposed to take their help in this It is proposed to take their help in this

project to shorten the learning curve and project to shorten the learning curve and diminish related expensesdiminish related expenses

CapacityCapacity

1000 pieces per year – 83 pieces per 1000 pieces per year – 83 pieces per monthmonth

InfrastructureInfrastructure

Building space – 250 Sq. Ft Building space – 250 Sq. Ft One gas stoveOne gas stove DieDie Melting vesselMelting vessel KettleKettle Two buckets to coolTwo buckets to cool Scrapper to de-burrScrapper to de-burr

Raw MaterialsRaw Materials

Raw materials required:Raw materials required: Wax, paraffin oil, color, perfume, wooden Wax, paraffin oil, color, perfume, wooden

standstandQuantity required / month:Quantity required / month: Wax – 31 kgWax – 31 kg Paraffin oil – 1 kgParaffin oil – 1 kg Color & Perfume – As requiredColor & Perfume – As required Wooden stand – one per mouldWooden stand – one per mouldSource:Source: Mishra Wax Works, DelhiMishra Wax Works, Delhi

ConsumablesConsumables

Cooking gas (LPG) – 1 cylinder / 6 Cooking gas (LPG) – 1 cylinder / 6 monthsmonths

No appreciable requirement of waterNo appreciable requirement of water No electric power requiredNo electric power required

ManpowerManpower

4 labor hours per day4 labor hours per day

Quality ControlQuality Control

DefectDefect CauseCause ControlControl

Finish / shapeFinish / shape Die qualityDie quality Supplier Supplier controlcontrol

StabilityStability Stand qualityStand quality Supplier Supplier controlcontrol

Print qualityPrint quality Wax qualityWax quality Visual Visual inspectioninspection

CracksCracks Improper Improper storagestorage

PackagingPackaging

Poor color Poor color appearanceappearance

Process of Process of mixingmixing

Measure Measure controlcontrol

Safety & EnvironmentSafety & Environment

Spillage of hot wax – Care in handlingSpillage of hot wax – Care in handling No waste or by-productNo waste or by-product No disposal issuesNo disposal issues

LogisticsLogistics

Handling – No special equipmentsHandling – No special equipments Packing – Wrapped with polythene Packing – Wrapped with polythene

sheet and packed in cartonssheet and packed in cartons Preservation – No special Preservation – No special

preservationpreservation Storage – No special requirementsStorage – No special requirements Delivery – Hand deliveredDelivery – Hand delivered

Capital RequiredCapital Required

ItemItem Cost (Rs.)Cost (Rs.)

Gas stoveGas stove 350/-350/-

Gas connection depositGas connection deposit 1000/-1000/-

DieDie 1500/-1500/-

VesselsVessels 600/-600/-

Other accessoriesOther accessories 200/-200/-

Training costTraining cost 450/-450/-

Working capital (2 Working capital (2 months)months)

4100/-4100/-

TotalTotal 7750/-7750/-

Variable CostVariable CostHeadHead QuantityQuantity Rate (Rs.)Rate (Rs.) Cost Cost

(Rs.)(Rs.)

WaxWax 0.37 kg0.37 kg 56/kg56/kg 20.7020.70

Paraffin oilParaffin oil 0.012 kg0.012 kg 100/kg100/kg 1.201.20

Color & perfumeColor & perfume ---- 900/liter900/liter 0.550.55

GasGas ---- 350/cyl.350/cyl. 0.900.90

Wooden standWooden stand 1 piece1 piece 10/-10/- 10.0010.00

Labor costLabor cost 1 person1 person 80/- /day80/- /day 10.0010.00

PackagingPackaging ---- 3.003.00

Incidental expensesIncidental expenses ---- 3.003.00

TotalTotal 49.3549.35

RevenueRevenue

HeadHead Amount (Rs.)Amount (Rs.)

Selling priceSelling price 75.0075.00

Variable costVariable cost 49.3549.35

RevenueRevenue 25.6525.65

Revenue in %Revenue in % 34%34%

Recovery PlanRecovery Plan

HeaderHeader Amount (Rs)Amount (Rs)

Funding providedFunding provided 7,750/-7,750/-

EMI for 12 monthsEMI for 12 months 646/-646/-

Revenue / monthRevenue / month 2,128/-2,128/-

% Recovery% Recovery 30%30%

Project AppraisalProject Appraisal

HeadingHeading Amount in RsAmount in Rs

InvestmentInvestment 7,750/-7,750/-

Sale turnoverSale turnover 60,000/-60,000/-

ProfitProfit 2,128/-2,128/-

BreakevenBreakeven 4 months4 months

ProposalProposal ApprovedApproved

Thank YouThank You