PROJECT PROFILE ON CEMENT JALLI

Product : CEMENT JALLI

Product Code : ASICC - 94431

NIC2004 - 26959

Category : GLASS & CERAMICS

Quality Standard : THE PRODUCT IS MANUFACTURED

AS PER CUSTOMER'S SPECIFICATIONS,
DESIGN, SHAPE AND SIZES.

Production capacity : Qty .- 300000 sq. ft.

Value –Rs. 6,30,000/-

Month & Year of : MARCH, 2011

preparation

-: Prepared By :-

GLASS & CERAMICS DIVISION

MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT INSTITUTE
PATLIPUTRA INDUSTRIAL ESTATE,
PATNA – 800 013
TELEPHONE: (0612) 2262719, 2262208, 2263211
FAX: (0612) 2262186
E-MAIL : dcdi-patna@dcmsme.gov.in

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 A. INTRODUCTION

Cement jallies have occupied an important role in the building

constructions. Cement jallies are pierced panels with a thickness of not less than 2.5
cm used in construction of houses, building, etc. as partition panels in the walls
and ventilators.

B. MARKET

The demand for cement jallies increases correspondingly with the increase of
building construction activity which is fast growing in the country. Apart from
low cost, other contributing factors to their demand are facinating designs and
functional qualifies in the market. Though the consumption of cement jalli in
Bihar state is about 1,00,00,000 sq.ft in a year, there are around fifty to sixty
units running to meet the requirements. The gap in demand & supply is met by the
product transported from other adjoining states like Uttar Pradesh, West Bengal and
Jharkhand. There is a good scope to develop MSE units in this line of manufacture
for local consumption.

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 C. BASIS AND PRESUMPTION

1. It may be assumed that the unit will be working on single shift basis
for 300 days in a year with a production capacity of 3,00,000 sq ft cement
jallies per annum.

2. The basis for calculation of production capacity is on single shift basis,

working of 25 days per month on 75% efficiency. The time required for
achieving envisaged capacity utilization is assumed as one year.

3. BEP for the scheme has been calculated on full capacity utilization.

4. Rate of interest has been taken as 16% on an average. This however, is

likely to vary depending upon the financial outlay and location of the unit.

5. The cost of machinery & equipment as indicated in the scheme are

approximate to those ruling at the time of preparation of the
scheme. The entrepreneur may check up the exact price for specific
make and model of the machine selected.

6. Non-refundable deposits, cost of preparation of projec profile, etc.

may be considered under pre operative expenses.

7. The provisions may in other respects vice-versa raw materials,

labour wages, utilities, overheads, etc. are drawn on the basis of
standard variation and output. The cost indicated against each are
approximate based on local market conditions and observation. The
entrepreneur may find out the exact cost from the concerned sources.

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 D. IMPLEMENTATION SCHEDULE

Project implementation Schedule

The major activities in the implementation of the project have been listed and the
estimated average time for implementation of the project is indicated for 12 months.

Sl. No. Activity Period in

months
1 Preparation of Project Report 1

2 Registration and other formalities 1

3 Sanction of loan by financial institution 3

4 Plant and machinery

a) Placement of order 1

b) Procurement 2

c) Power connections, electrification 2

d) Installation, errection of machinery test equipment 2

5 Procurement of raw materials 2

6 Recruitment of technical personnel 2

7 Trial production 11

8 Commercial production 12

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 E. PROCESS OF MANUFACTURE

Though not much advanced technology is employed in the manufacturing of

cement jallies, the techniques in designing and shaping have developed since these
items find use in the multi-storeyed building as ventilators and partittion panels in
walls.

The process of manufacturing of cement jallies is simple, as the technical

aspects involved are very less and do not require any sofisticated machineries. One
concrete hand mixture (local made) and iron or wooden moulds are required for the
manufacture of cement jallies.

The moulds are lubricated with kerosene oil and kept ready for moulding.
The cement and sand in proper ratio (i.e. 1:3) with proportionate water is mixed to
make concrete mixer. The moulds are then filled with the concrete mixer duly
providing reinforcement with M S rods and wires at suitable depth. The excess
material spread over the mould is removed and the surface is smoothened with
the help of a trowel. The jallies in different shapes and designs are then removed
about 24 hours. These jallies are then immersed in water for 14 days for curing in
order to develop strength and make more durable.

After curing the jallies are dried and stored for marketing.

F. INSPECTION AND QUALITY CONTROL

To ensure the proper quality as per the customer requirement, the unit should
have minimum testing facilities for mechanical strength analysis.

G. PRODUCTION CAPACITY PER ANNUM

It is envisaged that the unit can achieve production capacity of 300000 sq ft

cement jallies per annum valued at Rs. 63,00,000/-

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 H. FINANCIAL ASPECTS

1. FIXED CAPITAL :

(a) Land & Building:

S. DESCRIPTION AMOUNT
NO. (Rs.)
01. Land – 400 Sq. mtrs. OWN
02. Built-up area office & store 50 Sq. mtrs @ Rs.4000/- 2,00,000/-
per sq. mtr.
03. Workshed – 100 Sq. mtrs. @ Rs.2500/- per sq. mtr. 2,50,000/-
TOTAL 4,50,000/-

(b) Machinery and Equipment :

S. DESCRIPTION QTY RATE AMOUNT

NO. (Rs.) (Rs.)
01. Moulds/frames (iron) - Ind. 60 650/- 39,000/-
02. Wooden planks – Ind 60 50/- 3,000/-
03. Concrete hand mixer – Ind 01 20,000/- 20,000/-
04. Vibrator with 1 Hp motor and starter 01 18,000/- 18,000/-
05. curing tank 10'x5'x3' 02 10,000/- 20,000/-
06. Misc tools & equipments LS LS 10,000/-
07. Office Furniture & Equipments LS LS 20,000/-
08. Electrification & instllation LS LS 5,000/-
09. Pollution control equipment LS LS 5,000/-
TOTAL 1,40,000/-

Total Fixed Capital (a+b) = Rs. 5,90,000/-

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2. WORKING CAPITAL PER MONTH :

(a) Raw Material Per Month :

S. DESCRIPTION QTY RATE AMOUNT

NO. (Rs.) (Rs.)
01. Portland cement 24 Mt. 6,000/- 1,44,000/-
02. Sand 3000 cu.ft. 13/- 39,000/-
03. M S rod & wire 04 Mt. 44,000/- 1,76,000/-
TOTAL 3,59,000/-

(b) Salaries & Wages Per Month :

S. DESIGNATION NO. SALARY TOTAL

NO. (Rs.) (Rs.)
01. Manager & Accountant 01 6,500/- 6,500/-
02. Typist cum clerk/store keeper 01 5,000/- 5,000/-
03. Skilled worker 04 4,000/- 16,000/-
04. Unskilled worker 08 3,000/- 24,000/-
05. Peon/watchman 01 3,000/- 3,000/-
Total 54,500/-
Perquisites @ 15% 8,175/-
Total 62,675/-

(c) Utilities Per Month :

S. DESCRIPTION QTY. RATE AMOUNT

NO. (Rs.)
01. Power 500 Rs.5/- 2,500/-
KW per KW
02. Water - - 1,500/-
TOTAL 4,000/-

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 (d) Other Expenses Per Month :

S. DESCRIPTION QTY. RAT AMOUNT

NO. E (Rs.)
01. Advt. & Publicity - - 2,000/-
02. Insurnance - - 2,500/-
03. Misc.expenses like telephone - - 1,500/-
04. Oil &Lubricant consumable - - 1,500/-
05. Postage & stationery - - 1,000/-
06. Repair & replacement - - 1,000/-
07. Transport charges - - 2,000/-
TOTAL 11,500/-

RECURRING EXPENDITURE PER MONTH (Rs.):

= 3,59,000 + 62,675 + 4,000 + 11,500
= Rs.4,37,175/-

WORKING CAPITAL FOR 3 MONTHS

= Rs. 4,37,175/- X 3
= Rs. 13,11,525/-

3. TOTAL CAPITAL INVESTMENT :

Rs.

FIXED CAPITAL 5,90,000/-

WORKING CAPITAL FOR 3 MONTHS 13,11,525/-
==========
Total 19,01,525/-
==========
Say 19,00,000/-
==========

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 I. FINANCIAL ANALYSIS

(a) Cost of Production Per Annum :

S. DESCRIPTION AMOUNT (Rs.)

NO.
01. Depreciation on building 5% 23,500/-
02. Depreciation on furniture @ 20% 5,000/-
03. Depreciation on machinery @ 10% 4,300/-
04. Depreciation on moulds, tools & equipments @ 13,000/-
25%
05. Recurring expenditure 52,46,100/-
06. Interest on capital investment @ 16 % 3,04,000/-
TOTAL 55,95,900/-
OR Say 55,96,000/-

(b) Turn Over (Per Annum) :

It is envisaged that the unit can achieve production capacity of 300000 sq ft cement
jallies per annum valued at Rs. 63,00,000/-

ITEM QUANTITY RATE (Rs.) VALUE (Rs.)

Cement Jallies (Sq. Ft.) 3,00,000 @ 21/- 63,00,000/-

(c) Profit Per Annum :

Sales Per annum 63,00,000/-

Cost of Production per annum 55,96,000/-
===========
Profit 7,04,000/-
===========

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 (d) Profitability Analysis :

Profit/annum * 100
Net Profit Ratio = ---------------------------
Sales/annum

7,04,000 * 100
= -----------------------
63,00,000

= 11.17%

Profit/annum * 100
(e) Rate of Return = ----------------------------------
Total Capital investment

7,04,000 * 100
= -------------------------
19,00,000

= 37.05%

(f) Break Even Point :

(i) Fixed cost per annum :

S. NO. DESCRIPTION AMOUNT

(Rs.)
01. Depreciation 45,800/-
02. Interest on investment 3,04,000/-
03. Insurance 30,000/-
04. 40% of salary and wages 3,00,840/-
05. 40% of other expenses & Utilities excluding 43,200/-
insurence
TOTAL 7,23,840/-

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(ii) Profit per annum = Rs. 7,04,000

Fixed Cost/annum * 100

Break Even Point = -----------------------------------------------
Fixed cost/annum + profit/annum

7,23,840 * 100
= ---------------------------
7,23,840 + 7,04,000

= 50.69%

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J. NAME & ADDRESS OF SUPPLIERS OF MACHINERIES & RAW
MATERIALS

Suppliers of Machineries

01. M/s Reema Industrial Corporation

Industrial Estate
Bhagalpur (Bihar)

02. M/s Baidya Nath Roy

36/6, Ramkrshna Samadhi Road,
Kolkata – 700 054 (W. Bengal)

The moulds / frames, etc. can be made locally.

Suppliers of Raw Materials

All the raw materials for cement jallies are available in the open market.

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