Description
project finance
PROJECT OF PROJECT FINANCE
GUIDE: PROF. DEBANKUR MAJUMDAR
GROUP NO : 6 SANDEEP GHARGE DEVENDRA DHURI RAKESH DIVE JARNAIL SINGH SANDHU SANJAY GOSWAMI MAHESH DESHMUKH
51 41 99 29 35 59
INDEX
SR.No. 1. 2. 3. 4. 5. 6. 7. Particulars PACKAGING INDUSTRY (An Indian Overview) PROJECT AT A GLANCE PROJECT OUTLINE VISION AND MISSION PROMOTERS AND MANAGEMENT CONSUMERS OF THE PRODUCT MANUFACTURING PROCESS
8.
9. 10. 11. 12. 13. 14. 15. 16. 17.
MARKETING
PLANT LOCATION FACTORY BUILDING RAW MATERIAL UTILITIES PLANT AND MACHINERY COST OF THE PROJECT MEANS OF FINANCE INVESTMENT CRITERIA SOCIAL BENEFITS
Classifications ~ Packing Industry in India:
a. Functions of Packages:
Protective Function Shock, Drop, Pressure, Vibration Heat, Water or Moisture
Graphic Design Design Colour Size
Convenient Function Transportation, Stocking (User, Ware House), Image, Design, Size Protection, After Re-Use Productivity
Psychological Function Attraction
b. Classification of Packaging: 1. By Shape (Form or Size) Heavy Packaging (Large) Container Wooden Packs Medium Packaging (Middle) Carton Box Woven Bag Can, Barrel, Tub Light Packaging (Small) Flexible Packaging Bottles, Can (Small) Paper Container
2. By Methods (Way of Packing) Vacuum Packaging Aseptic Packaging Retortable Packaging Shrink Packaging Strip Packaging Gas Flush Packaging Moisture – Proof Packaging Blister Packaging Skin Packaging Tamper – Evidence Packaging
3. By Contents
Food Packaging Cosmetics Packaging Powder Packaging Toiletry Packaging 4. By Materials Drug Packaging Liquid Packaging Clothing Packaging Dangerous Packaging
Rigid Packaging Bottle, Metal Can Wooden Box Metal Box, etc
Semi Rigid Packaging Carton Box Plastic Bottle Flexible Packaging Paper, Plastic Film, Alu- Foil Cellophane
PACKAGING INDUSTRY (An Indian Overview) • The highly fragmented packaging industry is estimated at Rs 8,000 crore. • The industry is growing at the rate of 22-25 per cent per annum. • In the next five years, the sector is expected to triple to around $ 60 bn. • There are about 600-700 packaging machinery manufacturers, 95percent of which are in the small and medium sector located all over India. • Indian packaging machinery imports are $ 125 million. • India's per capita packaging consumption is less than $ 15 against world wide average of nearly $ 100. • The total demand for paper is estimated to be around 6 mn tones, of which about 40 percent is consumed by the packaging industry.
Why Corrugated Box Business:
Corrugated packaging offers an unique blend of advantage unmatched by other modes of packaging. The structural rigidity and flutings provide a cushioning property to the box, thus making it suitable for all types of articles. Corrugated offers excellent tear, tensile and burst strength to withstand shipping pressures. Corrugated boxes, being collapsible, are compact, easy and convenient to store. Unlike wooden boxes, which are heavy, corrugated boxes are lightweight and easy to handle. This property of corrugated boxes also helps in reduction of transportation costs. Corrugated boxes, are the most versatile form of packaging. They are highly customizable and their size, shape and strength could be altered as per requirements, thus offering unlimited packaging solutions. Corrugated boxes are graphically appealing as well. Corrugated boxes with kraft Face or Duplex Face can be used to make attractive designs with graphics.
PROJECT AT A GLANCE • The Company Rainbow Packaging Private Limited is setting up a plant at 303, Wada, District Thane, Maharashtra to manufacturer Corrugated Boxes. • Corrugated Boxes manufacturing unit can be only a SSI unit as per the directives of the Government of India. • The project is promoted by Mr. Sandeep Gharge, Mr. Rakesh Dive, Mr. Mahesh Deshmukh, Mr. Devendra Dhuri, Mr. Sanjay Goswami and Mr. Journail Singh Sandhu, who are the Directors of the Company.
• The registered office of the company is at 102, Near Hiranandani Complex, Kharghar, Navi Mumbai-400029.
PROJECT OUTLINE
• The Company proposes to set up a plant to manufacturer Corrugated Boxes. • The Basic raw material are Kraft Paper, Stitching Wire and Gum etc. • Different types and qualities of Corrugated Boxes can be Manufactured in the same plant. • The Company will have an annual capacity for manufacturing 2400 tonnes of Corrugated Boxes. • The Company is initially expected to operate at 60% in first and then after to raise operating capacity 95 % by the fifth year.
VISION
In coming 20 years Rainbow Packaging wish to become Market Leader in premium segment of Corrugated Boxes.
MISSION Over next 5 year Rainbow Packaging capturing 20 % market share in domestic market.
PROMOTERS AND MANAGEMENT
Mr. Sandeep Gharge Mr. Devendra Dhuri Mr. Mahesh Deshmukh Mr. Rakesh Dive Mr. Snajay Goswami Mr. Journail Sing Sandhu Chief Executive Officer Director Director Working Partner (Manager - Marketing) Working Partner (Manager – Finance) Working Partner (Manager – Logistics)
Chief Executive Officer Board Of Directors
Manager Marketing & Sales
Manager Finance
Manager Logistics
Asst. Manager Marketing & Sales
Asst. Manager Finance
Asst. Manager Logistics
Staff
Staff
Staff
The Products Manufactured by this Company will have application in following sector: 1. 2. 3. 4. 5. Food Processing Sector Personal Product Sector Consumer durable Sector Industrial Product Pharmaceutical and Agra Chemical The company is initially installing Semi-automatic machinery which would later on be converted into fully automatic machinery.
CONSUMERS OF THE PRODUCT
• • • • • Hindustan lever Ltd. – Mumbai Britannia Industries – Sewree Cynamide – Valsad National Dairy Development Board – Anand, Surat GSFC Ltd. – Kosamba, Gujarat Orders are also expected from:
• Pepsi – Chembur, Mumbai • Reliance Industries – Patal Ganga • Kelloggs – Taloja
The company is sell the products directly through own marketing channels.
Manufacturing Process:
Corrugated boxes is an item which goes through process control. The main raw materials required for manufacturing of corrugated boxes are kraft papers, stitching wire and gum. Kraft papers comprises the main raw materials for manufacturing corrugated boxes. The Kraft paper would be put through various stages beginning from corrugation, pasting, sheet cutting, bending, cutting and finally stitching. Flow chart showing the manufacture process of corrugated boxes is given below:
MANUFCTURING PROCESS
RAW MATERIAL INWARD CORRUGATE MACHINERY SHEET CUTTING
PASTING MACHINERY
ROTARY CREAASER CUTTER ROTARY CREASER SLOTER AND PRINTER STITCHING MACHINE BUNDLING
DELIVERY
MARKETING
Already we have ready markets for our products. We are quite experience and have knowledge of the market in the Industry. So having experience and knowledge about the Packaging Industry, it would be possible to market the targeted level of production. In addition to that we are planning to host & participate in some of the below mentioned Paper & Printing Exhibitions: Jun 07 - 09, 2012 Southpack-2012 Venue – Chennai Trade Centre, Chennai, India Nov 06 - 08, 2012 Packtech India 2012 Venue – Bombay Convention and Exhibition Centre, Mumbai
Dec 07 - 10, 2012 PackPlus 2012 Venue – India Expo Centre, Greater Noida
PLANT LOCATION
PLANT MAP
PLANT LOCATION
• The plant will be located at 303, Wada, Dist. Thane, Maharashtra which is a notified industrially backward area. • The plant is accessible by Road from Vajreshwari which is 75 kms. Away and can be reached by Western Express Highway. It can be also accessed by Estern Express Highway after Bhiwandi. • The plant is to be located in an area which is classified as D1 zone by the Government of Maharashtra and therefore enjoy special capital incentive (state subsidy) of 30% of Fixed Capital Investment up to a maximum limit of Rs. 20 lakh. • Due to this location, Raw Material viz Craft Paper, Stitching wire and gum are easily available from nearby places and marketing can also done to surrounding areas viz. Mumbai, Bhopal, Hyderabad, Valsad, Surat etc. • Skilled and Unskilled labour is also easily available due to locational advantage of the plant.
FACTORY BUILDING
• The Company has acquired 2.25 acres of free hold land at a total cost of Rs. 45 lacs t No.33, Wada, Maharashtra.
• The cost of land leveling and site development is estimated at Rs. 25 lacs.
• The company intends to construct a plant building of 11,000 sq.ft.and an office building of 1700 sq.ft. at total cost of Rs. 1,39,50,000. Details Of Factory Building given below:
(Amt. in Rs.) Factory/Office Building 11000 Sq. ft. @ Rs. 950 Registered Office Building 700 Sq. ft. @ Rs. 5000 Architect Fees Site Development 1,04,50,000 35,00,000 2,00,000 25,00,000
Tubewell
Total
1,00,000
1,67,50,000
RAW MATERIAL
The raw material required from the plant is easily available. The raw material required for the manufacturing process are:
Paper, Stitching Wire & Gum.
The raw material will be supplied by the following parties: 1. Daman Nagar Paper Mills 2. Rama Pulp & Paper 3. Ambeshwar Paper Mills, Ankleshwar 4. Continental Paper Mills ltd. Dhulia All raw material are easily available from near by areas like Vapi, Gujarat, and Maharashtra. The minimum quantity of raw materials is to be purchased at a time is between 3 to 5 tonnes and lead time procurement of raw material is expected between 7 to 10 days.
UTILITIES
• Water: The water requirements of the Company to manufacture the products is available locally without much difficultly and is to be provided by a tubewell whose estimated cost is Rs. 1,00,000/• Power: A power station, is be constructed by MSEB, which is expected to become operational within few months. To supplement the requirements of the unit, it is intended to purchase own generator and boiler also. • Fuel: A boiler will be required by the unit for its manufacturing process whose cost is estimated at Rs. 20,00,000/- The boiler is to be operated by using diesel, which is locally available.
PLANT AND MACHINERY
Particulars Fully Automatic Machineries Transport and Installation Charges
(Amt. in Rs.) 70,00,000 5,00,000
Generator Electrical Installation
5,00,000 5,00,000
Boiler Total
30,00,000 1,15,00,000
COST OF THE PROJECT
Sr. No.
1.
Particulars
Cost of Freehold Land
Amt. In Rs.
45,00,000
2.
3. 4.
Factory and Office Building incl. site development Exp.
Plant & Machinery Furniture & Fixture
1,67,50,000 1,15,00,000 3,00,000
5.
Working Capital
Total Amount
40,00,000
3,70,50,000
MEANS OF FINANCE
Sr. No.
1. 2. 3. 4.
Particular
Equity Share Capital (45% @16%) Subsidy (restricted to 20 Lacs) Short Term Loan ((30% @12%) Long Term Loan ((25% @10.5%) Total Amount
Amt. In Rs.
1,57,72,500 20,00,000 1,05,15,000 87,62,500 3,70,50,000
Investment Criteria
WACC WACD NPV MNPV IRR BCR MBCR PAYBACK PERIOD 9.596625 4.3575 Rs. 51509585 Rs. 54692575 43.79 2.315058 1.315058 2 years & 66 days
Social Benefits of the Project
Corrugated is the only packaging medium that can be cut and folded into an infinite variety of shapes and sizes and direct-printed with high-resolution color graphics. Corrugated boxes can be reused, salvaged, repulped and remade into boxes. The recyclability and eco-friendliness of corrugated boxes contribute to conservation of natural resources and environmental protection. Besides, the eco-friendliness, we are providing a employment to a economically backward society in Rural area of Thane. So it will help to improve standard of living of those people. Company is also planning to build a Nursery, playgroup for employees children and willing to run Literacy campaign for un-educated people.
doc_158882438.pptx
project finance
PROJECT OF PROJECT FINANCE
GUIDE: PROF. DEBANKUR MAJUMDAR
GROUP NO : 6 SANDEEP GHARGE DEVENDRA DHURI RAKESH DIVE JARNAIL SINGH SANDHU SANJAY GOSWAMI MAHESH DESHMUKH
51 41 99 29 35 59
INDEX
SR.No. 1. 2. 3. 4. 5. 6. 7. Particulars PACKAGING INDUSTRY (An Indian Overview) PROJECT AT A GLANCE PROJECT OUTLINE VISION AND MISSION PROMOTERS AND MANAGEMENT CONSUMERS OF THE PRODUCT MANUFACTURING PROCESS
8.
9. 10. 11. 12. 13. 14. 15. 16. 17.
MARKETING
PLANT LOCATION FACTORY BUILDING RAW MATERIAL UTILITIES PLANT AND MACHINERY COST OF THE PROJECT MEANS OF FINANCE INVESTMENT CRITERIA SOCIAL BENEFITS
Classifications ~ Packing Industry in India:
a. Functions of Packages:
Protective Function Shock, Drop, Pressure, Vibration Heat, Water or Moisture
Graphic Design Design Colour Size
Convenient Function Transportation, Stocking (User, Ware House), Image, Design, Size Protection, After Re-Use Productivity
Psychological Function Attraction
b. Classification of Packaging: 1. By Shape (Form or Size) Heavy Packaging (Large) Container Wooden Packs Medium Packaging (Middle) Carton Box Woven Bag Can, Barrel, Tub Light Packaging (Small) Flexible Packaging Bottles, Can (Small) Paper Container
2. By Methods (Way of Packing) Vacuum Packaging Aseptic Packaging Retortable Packaging Shrink Packaging Strip Packaging Gas Flush Packaging Moisture – Proof Packaging Blister Packaging Skin Packaging Tamper – Evidence Packaging
3. By Contents
Food Packaging Cosmetics Packaging Powder Packaging Toiletry Packaging 4. By Materials Drug Packaging Liquid Packaging Clothing Packaging Dangerous Packaging
Rigid Packaging Bottle, Metal Can Wooden Box Metal Box, etc
Semi Rigid Packaging Carton Box Plastic Bottle Flexible Packaging Paper, Plastic Film, Alu- Foil Cellophane
PACKAGING INDUSTRY (An Indian Overview) • The highly fragmented packaging industry is estimated at Rs 8,000 crore. • The industry is growing at the rate of 22-25 per cent per annum. • In the next five years, the sector is expected to triple to around $ 60 bn. • There are about 600-700 packaging machinery manufacturers, 95percent of which are in the small and medium sector located all over India. • Indian packaging machinery imports are $ 125 million. • India's per capita packaging consumption is less than $ 15 against world wide average of nearly $ 100. • The total demand for paper is estimated to be around 6 mn tones, of which about 40 percent is consumed by the packaging industry.
Why Corrugated Box Business:
Corrugated packaging offers an unique blend of advantage unmatched by other modes of packaging. The structural rigidity and flutings provide a cushioning property to the box, thus making it suitable for all types of articles. Corrugated offers excellent tear, tensile and burst strength to withstand shipping pressures. Corrugated boxes, being collapsible, are compact, easy and convenient to store. Unlike wooden boxes, which are heavy, corrugated boxes are lightweight and easy to handle. This property of corrugated boxes also helps in reduction of transportation costs. Corrugated boxes, are the most versatile form of packaging. They are highly customizable and their size, shape and strength could be altered as per requirements, thus offering unlimited packaging solutions. Corrugated boxes are graphically appealing as well. Corrugated boxes with kraft Face or Duplex Face can be used to make attractive designs with graphics.
PROJECT AT A GLANCE • The Company Rainbow Packaging Private Limited is setting up a plant at 303, Wada, District Thane, Maharashtra to manufacturer Corrugated Boxes. • Corrugated Boxes manufacturing unit can be only a SSI unit as per the directives of the Government of India. • The project is promoted by Mr. Sandeep Gharge, Mr. Rakesh Dive, Mr. Mahesh Deshmukh, Mr. Devendra Dhuri, Mr. Sanjay Goswami and Mr. Journail Singh Sandhu, who are the Directors of the Company.
• The registered office of the company is at 102, Near Hiranandani Complex, Kharghar, Navi Mumbai-400029.
PROJECT OUTLINE
• The Company proposes to set up a plant to manufacturer Corrugated Boxes. • The Basic raw material are Kraft Paper, Stitching Wire and Gum etc. • Different types and qualities of Corrugated Boxes can be Manufactured in the same plant. • The Company will have an annual capacity for manufacturing 2400 tonnes of Corrugated Boxes. • The Company is initially expected to operate at 60% in first and then after to raise operating capacity 95 % by the fifth year.
VISION
In coming 20 years Rainbow Packaging wish to become Market Leader in premium segment of Corrugated Boxes.
MISSION Over next 5 year Rainbow Packaging capturing 20 % market share in domestic market.
PROMOTERS AND MANAGEMENT
Mr. Sandeep Gharge Mr. Devendra Dhuri Mr. Mahesh Deshmukh Mr. Rakesh Dive Mr. Snajay Goswami Mr. Journail Sing Sandhu Chief Executive Officer Director Director Working Partner (Manager - Marketing) Working Partner (Manager – Finance) Working Partner (Manager – Logistics)
Chief Executive Officer Board Of Directors
Manager Marketing & Sales
Manager Finance
Manager Logistics
Asst. Manager Marketing & Sales
Asst. Manager Finance
Asst. Manager Logistics
Staff
Staff
Staff
The Products Manufactured by this Company will have application in following sector: 1. 2. 3. 4. 5. Food Processing Sector Personal Product Sector Consumer durable Sector Industrial Product Pharmaceutical and Agra Chemical The company is initially installing Semi-automatic machinery which would later on be converted into fully automatic machinery.
CONSUMERS OF THE PRODUCT
• • • • • Hindustan lever Ltd. – Mumbai Britannia Industries – Sewree Cynamide – Valsad National Dairy Development Board – Anand, Surat GSFC Ltd. – Kosamba, Gujarat Orders are also expected from:
• Pepsi – Chembur, Mumbai • Reliance Industries – Patal Ganga • Kelloggs – Taloja
The company is sell the products directly through own marketing channels.
Manufacturing Process:
Corrugated boxes is an item which goes through process control. The main raw materials required for manufacturing of corrugated boxes are kraft papers, stitching wire and gum. Kraft papers comprises the main raw materials for manufacturing corrugated boxes. The Kraft paper would be put through various stages beginning from corrugation, pasting, sheet cutting, bending, cutting and finally stitching. Flow chart showing the manufacture process of corrugated boxes is given below:
MANUFCTURING PROCESS
RAW MATERIAL INWARD CORRUGATE MACHINERY SHEET CUTTING
PASTING MACHINERY
ROTARY CREAASER CUTTER ROTARY CREASER SLOTER AND PRINTER STITCHING MACHINE BUNDLING
DELIVERY
MARKETING
Already we have ready markets for our products. We are quite experience and have knowledge of the market in the Industry. So having experience and knowledge about the Packaging Industry, it would be possible to market the targeted level of production. In addition to that we are planning to host & participate in some of the below mentioned Paper & Printing Exhibitions: Jun 07 - 09, 2012 Southpack-2012 Venue – Chennai Trade Centre, Chennai, India Nov 06 - 08, 2012 Packtech India 2012 Venue – Bombay Convention and Exhibition Centre, Mumbai
Dec 07 - 10, 2012 PackPlus 2012 Venue – India Expo Centre, Greater Noida
PLANT LOCATION
PLANT MAP
PLANT LOCATION
• The plant will be located at 303, Wada, Dist. Thane, Maharashtra which is a notified industrially backward area. • The plant is accessible by Road from Vajreshwari which is 75 kms. Away and can be reached by Western Express Highway. It can be also accessed by Estern Express Highway after Bhiwandi. • The plant is to be located in an area which is classified as D1 zone by the Government of Maharashtra and therefore enjoy special capital incentive (state subsidy) of 30% of Fixed Capital Investment up to a maximum limit of Rs. 20 lakh. • Due to this location, Raw Material viz Craft Paper, Stitching wire and gum are easily available from nearby places and marketing can also done to surrounding areas viz. Mumbai, Bhopal, Hyderabad, Valsad, Surat etc. • Skilled and Unskilled labour is also easily available due to locational advantage of the plant.
FACTORY BUILDING
• The Company has acquired 2.25 acres of free hold land at a total cost of Rs. 45 lacs t No.33, Wada, Maharashtra.
• The cost of land leveling and site development is estimated at Rs. 25 lacs.
• The company intends to construct a plant building of 11,000 sq.ft.and an office building of 1700 sq.ft. at total cost of Rs. 1,39,50,000. Details Of Factory Building given below:
(Amt. in Rs.) Factory/Office Building 11000 Sq. ft. @ Rs. 950 Registered Office Building 700 Sq. ft. @ Rs. 5000 Architect Fees Site Development 1,04,50,000 35,00,000 2,00,000 25,00,000
Tubewell
Total
1,00,000
1,67,50,000
RAW MATERIAL
The raw material required from the plant is easily available. The raw material required for the manufacturing process are:
Paper, Stitching Wire & Gum.
The raw material will be supplied by the following parties: 1. Daman Nagar Paper Mills 2. Rama Pulp & Paper 3. Ambeshwar Paper Mills, Ankleshwar 4. Continental Paper Mills ltd. Dhulia All raw material are easily available from near by areas like Vapi, Gujarat, and Maharashtra. The minimum quantity of raw materials is to be purchased at a time is between 3 to 5 tonnes and lead time procurement of raw material is expected between 7 to 10 days.
UTILITIES
• Water: The water requirements of the Company to manufacture the products is available locally without much difficultly and is to be provided by a tubewell whose estimated cost is Rs. 1,00,000/• Power: A power station, is be constructed by MSEB, which is expected to become operational within few months. To supplement the requirements of the unit, it is intended to purchase own generator and boiler also. • Fuel: A boiler will be required by the unit for its manufacturing process whose cost is estimated at Rs. 20,00,000/- The boiler is to be operated by using diesel, which is locally available.
PLANT AND MACHINERY
Particulars Fully Automatic Machineries Transport and Installation Charges
(Amt. in Rs.) 70,00,000 5,00,000
Generator Electrical Installation
5,00,000 5,00,000
Boiler Total
30,00,000 1,15,00,000
COST OF THE PROJECT
Sr. No.
1.
Particulars
Cost of Freehold Land
Amt. In Rs.
45,00,000
2.
3. 4.
Factory and Office Building incl. site development Exp.
Plant & Machinery Furniture & Fixture
1,67,50,000 1,15,00,000 3,00,000
5.
Working Capital
Total Amount
40,00,000
3,70,50,000
MEANS OF FINANCE
Sr. No.
1. 2. 3. 4.
Particular
Equity Share Capital (45% @16%) Subsidy (restricted to 20 Lacs) Short Term Loan ((30% @12%) Long Term Loan ((25% @10.5%) Total Amount
Amt. In Rs.
1,57,72,500 20,00,000 1,05,15,000 87,62,500 3,70,50,000
Investment Criteria
WACC WACD NPV MNPV IRR BCR MBCR PAYBACK PERIOD 9.596625 4.3575 Rs. 51509585 Rs. 54692575 43.79 2.315058 1.315058 2 years & 66 days
Social Benefits of the Project
Corrugated is the only packaging medium that can be cut and folded into an infinite variety of shapes and sizes and direct-printed with high-resolution color graphics. Corrugated boxes can be reused, salvaged, repulped and remade into boxes. The recyclability and eco-friendliness of corrugated boxes contribute to conservation of natural resources and environmental protection. Besides, the eco-friendliness, we are providing a employment to a economically backward society in Rural area of Thane. So it will help to improve standard of living of those people. Company is also planning to build a Nursery, playgroup for employees children and willing to run Literacy campaign for un-educated people.
doc_158882438.pptx