CORRUGATED PAPER BOX

PRODUCT CODE

: NA

QUALITY AND STANDARDS

: As per customers specifications

Paper Boxes are available in 2 Ply, 3 Ply,
5 Ply, 7 Ply and 9 Ply

PRODUCTION CAPACITY
Value

: 180 MT (Per Annum)

: Rs. 96,61,000/-

MONTH AND YEAR

OF PREPARATION

: May, 2014

PREPARED BY

: Sh. Brajendra Kumar

Assistant Director (Chemical)

1. INTRODUCTION
Corrugated Paper boxes are extensively used in the packaging of industrial as
well as consumer goods. In some of products like crockery, electronic items,
automobile components, glass and cigarettes, pharmaceuticals, soaps & cosmetics,
biscuits, hosiery, toys, rubber & rubber products, refrigerator, cooler & fans, proper
type of packaging becomes very important.

2. MARKET POTENTIAL
With the steady rise in the industrial production, the demand for corrugated
paper boxes increasing every year. These boxes have got distinct advantages such as
light in weight, easy to fabricate as per required specifications. The corrugated
papers and boards may also find market in the rural areas for packing of fruits,
vegetables & eggs.

3. BASIS AND PRESUMPTIONS

The estimates are drawn for a production, capacity generally technoeconomically viable for model type of manufacturing activity. The information
supplied is based on a standard type of manufacturing activity utilizing
conventional technique of production and optimum levels of performance. The costs
in respect of machinery and equipments, raw materials and selling prices of the
furnished products etc. are those generally obtaining at the time of the preparation
of project profiles and may vary depending upon various factors. Whereas some
names of manufacturing/supplies of machinery and equipments, raw material are
indicated at the end of profile, these are by no means exclusive or exhaustive.
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Chemical Division

4. IMPLEMENTATION SCHEDULE
Quotation period

10 days

Provisional registration

10 days

Sanction of loans

2 months

Delivery and erection of machine,

electrification etc.

1 month

5. TECHNICAL ASPECTS
5.1. Process of Manufacturing
Calculation has been based on single corrugated sheet pasted with one sheet
of craft paper. Two paper reels are run together on corrugated machine. One layer
of paper becomes corrugated after passing through the heated fluted rolls and other
is brought in contact with the former having been glued at the tips. These two get
pasted together and are wound in rolls. These will be procured on job work. By
cutting this roll with board cutters and gluing the corrugated side on pasting
machine. A double face board is produced by the 3rd ply of paper over it. This
board is kept under a sheet pressing machines for some time for setting of wet glued
sheets. Similarly board to board can be pasted to form thicker board i.e. 5 Ply, 7 Ply
and 9 Ply etc.

5.2. Quality Control and Standards

As per customers specification, these are available in 2Ply, 3Ply, 5Ply, 7Ply &
9 Ply.

5.3. Production Capacity

Production : 180 Tons

5.4. Motive Power

7 HP

5.5. Pollution Control

No special Pollution control measures are required. NOC is to be taken from
Pollution Control Board before commencement of the project.

5.6. Energy Conservation

Proper maintenance and judicial use of power operated machines will
conserve the energy

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Corrugated Paper Box

6. FINANCIAL ASPECT
6.1. Fixed Capital
Land &Building: Covered area of 200 sq. ft. & uncovered area of 50 sq. ft. on rent.
6.1.1. Machinery and Equipments
S.No.
i)

Particulars
Cutting machine

Amount (Rs.)
65,000

ii)

Paper Pasting machine size 75" complete with motor

90,000

iii)

Stapler 36

45,000

iv)

Testing Equipment, Physical Balance meter scales

15,000

v)

Generator set 5 KVA

45,000

vi)

2 Bar Rotary machine for creasing & sizing

1,00,000

vii)

Accentric Slotter

1,80,000

viii)

Installation & electrification

ix)

54,000

Officer furniture
TOTAL

76,000
6,70,000

6.2. Working Capital (per month)

6.2.1. Personnel
S. No.

Designation

No.

Salary (Rs.)

Amount (Rs.)

Manager (self)

15,000

15,000

Production Supervisor

11,000

11,000

Salesman

9,000

9,000

Skilled workers

9,500

19,000

Unskilled workers

8,500

17,000

TOTAL
Perquisite@ 15%
Grand Total

71,000
10,650
81,650

6.2.2. Raw Material

S.No.
1

Description
Craft Papers

Qty
15 tons

Rate
Rs.30/kg

Amount (Rs.)
4,50,000

Glue

1 ton

Rs.10/kg

10,000

Staples wire etc.

500 kgs.

Rs.40/kg

20,000

Packaging Material
TOTAL

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20,000
5,00,000

Chemical Division

6.2.3. Utilities
S.No.

Description

Amount (Rs.)

Power 2,000 units @ Rs.5/- per unit

Diesel 100 liter @ Rs.50 per liter

Water

10,000
5,000
500

TOTAL

15,500

6.2.4. Other Contingent Expenses

S. No.

Description

Amount (Rs.)

Rent

15,000

Postage, stationery Telephone

1,000

Repair & Maintenance

2,000

Transport & Travelling

4,500

Consumable Stores

2,000

Corrugation charges @ Rs.5 per kg

Misc. Expenses

70,000
5,500

TOTAL

1,00,000

6.2.5. Total Recurring Expenditure (per month)

S. No

Description

Amount (Rs.)

1.

Raw Material

5,00,000

2.

Salary & Wages

81,650

3.

Utilities

15,500

4.

Other Expenses

1,00,000
Total

6,97,150

Say

6,97,000

6.3. Total Capital Investment

Total Fixed Capital

Rs. 6,70,000

Total Working Capital (for 3 months)

Rs. 20,91,000

Total

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Rs. 27,61,000

Corrugated Paper Box

7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
S.No.
1

Description
Recurring Expenditure

Amount (Rs.)
83,64,000

Depreciation on Machinery & Equipment @ 10%

54,000

Depreciation on furniture @ 20%

15,200

Interest on capital investment @ 15% per annum

Total

4,14,150
88,47,350

7.2. Turnover (per annum)

Considering 2.5% processing wastage;
Total production
= 175.5 tons
Wastage
= 4.5 tons
Sales of 175.5 tons paper boxes
Sales of 4.5 tons wastage

@ Rs.56,000 per ton

@ Rs. 7,200 per ton
Total

7.3. Net Profit (per annum)

=

Turnover cost of production

Rs. 98,60,400 88,47,350

Rs. 10,13,050

7.4. Net Profit Ratio

=

Net profit per year

X 100
Turnover per year

10,13,050
X 100
98,60,400

= 10.3 %

7.5. Rate of Return

=

Net profit per year

X 100
Total Capital Investment

10,13,050
X 100
27,61,000

= 36.7 %

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Rs. 98,28,000
Rs. 32,400
Rs. 98,60,400

Chemical Division

7.6. Break-even Point

Fixed Cost

Value (in Rs.)

Depreciation on Machinery @ 10% per annum

54,100

Depreciation on Furniture @ 20% per annum

15,200

Interest on total investment

4,14,150

Rent

1,80,000

40% of salary & wages

3,91,920

40% of other expenses

4,08,000
Total

B.E.P
=

Fixed Cost
X 100
Fixed Cost + Net Profit

14,63,370
X 100
14,63,370 + 10,13,050

= 59.1%
LIST OF MACHINERY SUPPLIERS
1. M/s Nagpal Industries ,1062 Burtan Market
Sadar Bazar, Delhi -6
2. M/s Yesh Mech. Works
374, Azad Market, Delhi -6
3. Paper converting machinery ,
B-170, New Okhla Indl. Estate, Phase I, New Delhi
LIST OF RAW MATERIAL SUPPLIERS
1. M/s Unisystem Pvt.Ltd.
15/1, Mathura Road, Faridabad
2. Local Dealer in Delhi

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14,63,370