Nonstick Cookwares - East Godavari District

NON-STICK COOKWARES
A.
INTRODUCTION
Non-stick cooking vessels and utensils find wide applications in homes and hotels.
They are now widely used by all.
The popular varieties are Tawas, Frying Pans,
Casserols, etc. These are made of Aluminium sheets and coated with Poly Tetra Fluoro
Etyelene (PTFE). They are popularly known as Teflon coated cooking wares. They
have several advantages over conventional cook wares such as lesser usage of
cooking medium like edible oil and lesser spoilage of cooked material by over heating,
burning, etc.
B.
PRODUCT USES AND SPECIFICATIONS
The non-stick cookware comes under the standards of Bureau Of India Standards. BIS
has stipulated the standards for Non-stick un-reinforced Plastic coatings on Domestic
cooking Utensils (Amendment 1.7 Reaffirmed-1990) under IS-9730-1981.The basic raw
material namely Aluminium circles have to be conforming to IS-21. Necessary Testing
methods such as Salt water corrosion resistance Test, Thickness of Coating, Non-stick
quality, adhesive test and Dimension of utensil Test have to be carried out.
C.
MARKET POTENTIAL
The demand for housing is increasing as there is a heavy backlog of houses to be
constructed in India and there is a scope of adding 50 lakhs houses every year. This
allows a big demand for Household utensils like Non-stick cook wares.
The National Buildings Organisation (NBO) had estimated the urban housing shortage
in 1991 at 8.23 million dwelling units. Keeping in view trends from 1961-1991 in the
nature of additionality in housing stock, the overall urban housing shortage of 7.57
million DUs was projected for 1997. As per 1991 census of India projections, out of 22.9
million housing shortage, 8.23 million DUs was in urban areas while 14.67 million DUs
in rural areas. With the additionality of 16.5 million in housing stock in five years, the net
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shortage was estimated to be 6.64 million DUs by 2001. The new housing demand
during the period 1997-2002 has been gauged as 8.8 million dwelling units.
It is estimated that the urban housing sector alone would require a total investment of
Rs.1,21,371 crores during the next five years to meet the requirement of housing
shortage of 75.7 lakhs DUs, upgradation of 3.2 lakh semi-pucca EWS units and the
additional construction requirement of 86.7 lakh units. The total fund requirement
including rural housing need would be 1,50,000 crores whereas the total availability is
Rs.52,000 crores only from the formal sector (Rs.34,000 crores for urban and
Rs.18,000 crores for rural housing).
D.
TECHNICAL ASPECTS
1.
Installed Capacity
The installed capacity of the proposed unit is manufacturing of 120000 non-stick cook
wares per annum (aluminium vessel of 8” dia and 2” thickness). This is based on double
shift operation per day for 16 hours, for 300 days in a year.
2.
Plant and Machinery
The following machineries are required for production.
Machine name
Quantity Value
(Nos)
(Rs.lakhs)
digital
1
4.00
Continuous baking oven for base coat with
temperature control upto 150° C (6 m x 6 m x 4m) size.
Continuous baking oven for top coat with digital temperature
control upto 500° C (6 m x 6 m x 4m) size. Drilling machine
½”
Buffing machine CI stand 1500.rpm
Air compressor cylinders with spray gun
Testing equipments-Corrosion cabinet for salt spray,
Thickness Micrometer, Scrubbing Tester, Bending barrel for
adhesive Test.
Weighing Machine
Other miscellaneous tools, accessories
Total
2
1
5.00
1
1
1
0.20
0.30
1.00
1
0.20
1.30
12.00
3.
Manufacturing Process
The manufacturing of Non-stick cook ware involves the following sequence of
operations.
Purchase of aluminium utensils of good quality
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Sand blasting of utensils before coating
I
Spraying with base coat of PTFE and then baking in primer oven for 10 minutes at 100
to120° C.
I
Cooling down utensil to normal level temperature
I
Spraying with top coat of PTFE and baking in oven for 10 minutes at 400 to 420°C.
I
Finishing outside of the utensil by buffing and riveting bracket for handle by riveting
machine
I
Testing the utensils
I
Stamping utensils with brand names, nominal thickness, at the base of the utensil.
I
Cleaning with cotton cloth, and pack in boxes along with instruction booklet, handle
scrubber, spatula
I
Despatching
4.
Raw Material
The raw materials required for manufacturing of non-stick cookware are Aluminum
utensils PTFE coating liquid, Bakelite handles, Brackets, SS screws, Aluminum Rivets,
Wooden spatula, and Packing material. These are available from dealers.
5.
Land & Building
A rented place with 5000 sqft. area is required.
Rs.25000 and also an advance of Rs.125 000.
6.
Utilities
Power:
The total power requirement of the unit will be 15 HP
3
The monthly rent is estimated at
Water:
Water is required only for human consumption.
Man power:
Category
mnager
Supervisors
Operators
Unskilled
Assistants
Security
Add 20%benefits
Total
Annually
7.
Nos
Monthly
salary
7000
5000
3000
2000
3000
2000
1
2
6
4
2
2
Total
Total
Salary
7000
10000
18000
8000
6000
4000
53000
10600
63600
Rs.7.63 lakhs
Implementation Schedule
If financing arrangements is made available the project can be implemented within three
months period.
8.
ASSUMPTIONS
Installed capacity per annum
Capacity utilization-Year -1
Year-2
Year-3
Selling price per unit
Material cost at 100%
Aluminium Vessels
PTFE Coating Liquid
Bakelite handles
Brackets /Handles
SS Screws
Aluminium Rivets
Wooden Spatula
Packing material
Non Stick Cookware 120000 Nos
60%
70%
80%
Non Stick Cookware Rs.150.00 /piece
Qty required
p.a.
120000 nos
4200 Kgs
72000 nos
108000 nos
Rate/MT
(Rs.)
37/Piece
850/Kg
15/pc
8/pc
120000 nos
120000nos
Total
5/pc
15/pc
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Value
(Rs.lakhs)
44.40
35.70
10.80
8.64
0.36
0.24
6.00
18.00
124.14
Consumables per annum-at 100% (Rs.lakhs)
Power and Fuel-100% (Rs.lakhs)
Wages & salaries -100% (Rs.)
Repairs & Maintenance- p.m.
Depreciation
General & administration Expenses per month
Selling expenses
Interest on term loan and Working capital finance
Income tax provision
Rs.1.20 lakhs
Rs.2.42 lakhs
Rs.7.63 lakhs
Rs.5000/Straight Line Method
Rs.50000/3% on Sales
14% p.a.
36% on profit
LIST OF MACHINERY SUPPLIERS
1.
THERELEK Furnaces Pvt ltd
A-131 road no 123
Wagle Industrial estate
Plot no.4 Thane 400604
2.
High Temp Furnaces ltd
IC-2nd Phase
Peenya Indutrial Estate
Bangalore-560 058
3.
Johind Furnaces Pvt ltd
248-3rd cross -8th Main road 3rd Phase
Peenya Industrial estate Bangalore-560058
LIST OF RAW MATERIAL SUPPLIERS
1.
PTFE Coating Material
Dupont India Ltd
90.R.K.Salai-8th Street
Chennai-600 004
2.
E.I.Depont India Ltd.
62/63, Abiramapuram,
C.P. Ramasamy Iyer Road,
Chennai 600 008.
Aluminium utensils are available from local manufacturers in Chennai and other places.
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1. COST OF PROJECT
[Rs.lakhs]
Land & Building (Advance)
Plant & Machinery
Other Misc. assets
Pre-Operative expenses
Margin for WC
2.50
12.00
0.50
1.00
2.59
18.59
2. MEANS OF FINANCE
Capital
Term Loan
9.59
9.00
18.59
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3. COST OF PRODUCTION & PROFITABILITY STATEMENTS
[Rs.lakhs]
Years
1
2
3
Installed Capacity (Nos.)
Non-Stick cook ware
120000
120000 120000
Utilisation
60%
70%
80%
Production/Sales (Nos.)
Staple pins
72000
84000
96000
Selling Price/piece (in Rupee)
150 per piece
Sales Value (Rs.lakhs)
108.00
126.00
144.00
Raw Materials
Consumables
Power
Wages & Salaries
Repairs & Maintenance
Depreciation
Cost of Production
74.48
0.72
1.45
7.63
0.60
1.35
86.23
86.90
0.84
1.69
8.01
0.63
1.35
99.42
99.31
0.96
1.94
8.41
0.66
1.35
112.63
Admin, & General expenses
Selling expenses
Interest on Term Loan
Interest on Working Capital
Total
6.00
3.24
1.26
1.25
97.98
6.30
3.78
1.10
1.25
111.85
6.62
4.32
0.79
1.25
125.61
Profit Before Tax
Provision for tax
Profit After Tax
10.02
3.61
6.41
14.15
5.09
9.06
18.39
6.62
11.77
Add: Depreciation
Cash Accruals
1.35
7.76
1.35
10.41
1.35
13.12
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4. WORKING CAPITAL:
Months
Consumption
Values
%
0.75
1.00
0.25
0.50
1.00
4.66
0.06
1.80
4.50
0.50
11.52
25%
25%
25%
10%
100%
Raw Materials
Consumables
Finished goods
Debtors
Expenses
[Rs.lakhs]
Margin
Bank
Amount Finance
1.17
0.02
0.45
0.45
0.50
2.59
3.49
0.04
1.35
4.05
0.00
8.93
5. PROFITABILITY RATIOS BASED ON 80% UTILISATION
Profit after Tax
Sales
11.77
144.00
8%
Profit before Interest and Tax
Total Investment
20.43
27.52
74%
Profit after Tax
Promoters' Capital
11.77
9.59
123%
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6. BREAK EVEN LEVEL
Fixed Cost (FC):
[Rs.lakhs]
8.41
0.66
1.35
6.62
0.79
17.83
Wages & Salaries
Repairs & Maintenance
Depreciation
Admin. & General expenses
Interest on TL
Profit Before Tax (P)
BEL =
18.39
FC x 100
FC +P
17.83
36.22
x
80
100
x 100
39% of installed capacity
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