MAKING PVC FILES
Introduction
Articles made from PVC such as files
and albums are popular now. These are durable and attractive and have very good
demand in the market. PVC files and albums can be used by anyone and they have
gained
popularity in most institutions today. Stationery is essential in the day to
day functioning of offices and educational institutions. Today, fashions and
technology also influence stationery to a large degree. This business idea will
cost US $ 75,953 with a production capacity of 144,000 files giving estimated
revenues of US $ 792 annually.
Production Process, Capacity and
Technology
PVC sheets are cut into required sizes and softened by heat. They are then welded to get desired shape of PVC sheet. The profiled plant has a minimum capacity of 12,000 files per month.
Market Analysis
There is good scope for these PVC products as they are water resistant and are also available in attractive colours. Diary covers, notebooks, ration card covers, etc., can be made and supplied as per the demand. Picfare is a major key player in this sector.
Capital Investment Requirement in US$
|
Item |
Unit |
Qty |
Price |
Total cost |
|
File making machine |
No |
1 |
750 |
750 |
|
Plastic wielding machine |
No |
1 |
500 |
500 |
|
Riveting &Creasing machines |
No |
1 |
1500 |
1,500 |
|
File hole punching machine |
No |
1 |
700 |
700 |
|
Cutting Machine |
No |
1 |
650 |
650 |
|
Total cost of tools & Equipment |
4,100 |
1. Production costs assume 312 days per year with daily capacity of 462 files.
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. Direct costs include: materials, supplies and all other costs incurred to produce the product.
4. A production month is 26 work days
5. Currency
used is US Dollars.
Production and Operating costs in US$
Direct Materials, Supplies and costs
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
PVC sheet |
Mtrs |
2.50 |
77 |
193 |
5,005 |
60,060.00 |
|
Others |
Kgs/Pckts |
2 |
1 |
1.50 |
39.00 |
468.00 |
|
Sub-total |
194 |
5,044.00 |
60,528.00 |
|||
|
General Costs (Overheads) |
||||||
|
Labour |
550 |
6,600 |
||||
|
Selling & distribution |
200 |
2,400 |
||||
|
Utilities (Water, power) |
250 |
3,000 |
|
Rent |
150 |
1,800 |
|
Miscellaneous expenses |
50 |
600 |
|
Depreciation |
85 |
1,025 |
|
Sub-total |
1,285 |
15,425 |
|
Total Operating Costs |
6,329.40 |
75,953.00 |
Project product costs and Price Structure in US$
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total |
|
Pvc |
462 |
143,98 |
0.5 |
75,953 |
0.7 |
100,79 |
Profitability Analysis in US$
|
Item |
Per |
Per |
Per year |
|
Revenue |
323 |
8,399 |
100,792 |
|
Less: Production and operating |
243 |
6,329 |
75,953 |
|
Profit |
80 |
2,070 |
24,839 |