NSIC Project Profiles

1. INTRODUCTION

2. MARKET

3. MANUFACTURING PROCESS

4.S.No Particulars Nos. Rate Total Amt.

1 Sofa with centre table 36 5500 1980002 Sofa with centre table 36 5000 1800003 Dining table with six chairs 36 6000 2160004 Double bed 36 5000 1800005 Dressing table 60 2200 1320006 Other scrapes of wood, dust, chips,

etc36 20000

Total 204 926000

5. PROJECT COST/CAPITAL INVESTMENTS.No Description Amount Rs.

1 Fixed Capital 470002 Working Capital for 1 month(s) 718253 Preliminary & Preoperative Expns 10000

Total Project Cost 128825

WOODEN FURNITURE

The demand for the furniture made up of woods is growing due to the increasedstandard of living of people and outlook. On occassions like wedding, it has becomecustomary to gift wooden furniture like double bed, sofa, dressing table, dining tableto the daughter.

As the furniture would not have any fixed brand or company name, therefore, therewould be less competition.

PRODUCTION CAPACITY PER ANNUM

The line of process is used for wooden furniture is made as per the measurements;shaping, bending & chistling as per design; finishing touch with sand paper; finallyapply varnish/paint/lamination; and furniture can be laminated using laminatedsheet.

Wooden furniture also required in government and commercial establishments. Dueto non-availability of wood, these days wood is being imported from countries likeMalaysia, Sri Lanka, etc. For manufacture of furniture, wood is available from thelocal depots/forest areas. There is ever growing market for wooden furniture.

NSIC Project Profiles

6. MEANS OF FINANCES.No Description %age Amount Rs.

1 Promoter Contribution 15% 193242 Subsidy /Soft Loan 20% 257653 Term Loan 65% 83736

Total 128825

7. FINANCIAL ASPECTS

A. FIXED CAPITALi. Land and Buildings Rented Rs. 2000 per month

ii. Machinery and EquipmentS.No Description Qty. Rate Amount Rs.

1 Automatic wood working machine, LS 40000surface and thickness planner, circularsaw, drilling and grinding attachment of2 HP motor

2 Other tools like haksa, benchwise LS 5000hammer, etc

3 Electrification and installation LS 20004 Miscellaneous expenses LS 1000

Total 47000

B. WORKING CAPITAL

i. Salaries & Wages (per month)S.No Description Nos. Sal/mon. Amount Rs.

1 Carpenter/Entrepreneur 1 2500 25002 Skilled labours 1 2000 20003 Unskilled labours 2 1000 2000

Total 6500

ii. Raw Material (per month)S.No Description Unit Qty. Rate Amount Rs.

1 Sheesham, teak, wood, etc cu ft 60 500 300002 Ply sq ft 725 11 79753 Sunmaica sq ft 300 17 51004 Plane glass of thickness Nos. 3 1000 30005 Mirror Nos. 3 250 7506 Cushions sets 5 1200 60007 Fevicol kg 30 160 48008 Others LS 200

Total 57825

NSIC Project Profiles

iii. Utilities (per month)S.No Description Unit Amount Rs.

1 Power LS 20002 Water LS 500

Total 2500

iv. Other Expenses (per month)S.No Description Amount Rs.

1 Postage & Stationery Expenses 5002 Conveyance expenses 5003 Repairs and maintenance 5004 Insurance 10005 Miscellaneous Expenses 500

Total 3000

v. Total Working Capital (per month)S.No Description Amount Rs.

1 Rent 20002 Salaries and Wages 65003 Raw Material 578254 Utilities 25005 Other Expenses 3000

Total 71825

8. COST OF PRODUCTION (PER ANNUM)S.No Description Amount Rs.

1 Total Working Capital 8619002 Depreciation @ 15% 70503 Interest @ 12% 10048

Total 878998

9. TURNOVER (PER YEAR)S.No Description Unit Qty. Rate Rs. Amount Rs.

1 Sofa with centre table Nos. 36 5500 1980002 Sofa with centre table Nos. 36 5000 1800003 Dining table with six chairs Nos. 36 6000 2160004 Double bed Nos. 36 5000 1800005 Dressing table Nos. 60 2200 1320006 Other scrapes of wood, dust, chips, etc LS 36 20000

Total 926000

NSIC Project Profiles

10. FIXED COST (PER YEAR)S.No Description Amount Rs.

1 Depreciation 70502 Interest 100483 Rent 240004 Salaries & Wages @ 40% 312005 Other Expenses incl. Utilities @ 40% 26400

Total 98698

11. PROFIT ANALYSIS & RATIOS

1 Net Profit Rs. 470022 Percentage of Profit on Sales 5%3 Percentage of Return on Investment 36%4 Break Even Point 68%