The Business Plan
Monday, February 25, 2008
Project Title: Establishment of a sal-leaf-plate manufacturing unit for the Jagruti-Mahila Gramodyog Samiti, Ravindrapalli, Kharagpur.
Location of the unit: In three different houses of the village.(Rotation basis)
Estimated set-up cost : Rs. 20,000.00
| Sl.NO | Item | Specifications | Number | Rate | Estimated cost (INR) |
| 1 | Molding Machine | 12 inch die | 1 | 10,500 | 10,500.00 |
| 2 | Sewing Machine | ------ | 2 | 2850 | 5700.00 |
| 3 | Initial Raw Material+ Transportation +Misc | ------ | ----- | ----- | 3800.00 |
| Grand Total | | | | | 20,000.00 |
Process to be followed: Two sal leave-plates are paired up and stiched together in a sewing machine. The stiched plate is then molded under the hot molding die. The fuel comprises of wood ,twigs, leaves etc. and are used to heat the die up which helps in molding. We can press 5 plates (i.e 10 sal-leave plates) together in the molding machine. But the quality of some of the plates may not be good. For this we reprocess those plates whose quality are not good when the day's work is over and the machine is left for cooling. Sometimes the plate which is facing the die gets blackened due to excessive heat. So this has to be taken care off.
Funding: Funds would be raised as micro loans from our closely connected friends for a period of 6 months. We would have to pay the loan back by September 2008.
Cost Analysis:
Cost of one raw plate : 6-15 paise (seasonal variation)
Fuel Cost: 3-4 paise per finished plate.
Total cost of production for one plate : 15-35 paise.
Selling price of each plate: 30-60 paise.
Profit per plate: 15-25 paise.
Lets say that the machine runs for 4 hours daily
and it has a production rate of 400 plates/hour
Jagruti consists of 20 women
So total number of plates produced in a month = 4*400*30 = 48000
So net profit per month = 48000*15/100=7200.00 (this is the minimum profit)
Per head profit per month = 7200/20 = Rs. 360
Maximum total profit per month= 48000*25/100 = Rs.12000.00
Per head profit per month in that case = 12000.00/20 = Rs. 600.00
It is to be noted that we are using the machine for only 4 hours each day which can be increased and hence the production will rise.
Now lets say that we are going to take Rs 200 from each of the 20 women per month towards repayment of the loan.
Per Month repayment amount = Rs. 200* 20 = Rs. 4000.00
So we need 5 months to recover the loan amount.
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