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8 IN 1 PROJECT FOR THE MANUFACTURE OF VINYL ACETATE BASED ADHESIVE, NEOPRENE BASED ADHESIVE, RUBBER SOLUTIONS, PVA (POLY VINYL ALCOHOL), CORRUGATED GUM POWDER, PASTING GUM POWDER, DEXTRIN AND PVC SOLE PASTING ADHESIVE
1. VINYL ACETATE BASED ADHESIVE
VINYL ACETATE KNOWN BRAND IS FEVICOL-SH WIDELY USED IN WOOD FURNITURE
INDUSTRIES IN EACH STATE IN INDIA UNLIMITED MARKET POTENTIAL. NET PROFIT/TON IS
RS 3000/-
2. NEOPRENE BASED ADHESIVE
IN THE MARKET KNOWN BRANDS ARE:-
THE ABOVE EACH BRANDS ARE SOLD MINIMUM 1 LAKH LITRES PER MONTH IN EACH STATE IN INDIA. ALONE CHENNAI CITY'S CONSUMPTION OF EACH BRAND IS 30,000 TO 40,000 LITRES PER MONTH IN BECAUSE THERE ARE MULTIPUPOSE USES OF THIS ADHESIVE AS IN LEATHER, SHOES, CHAPPAL, REXINE, WOOD, FOAM, BEDS, INTERIOR DECORATIONS, RAILWAYS, AIRLINES, SHIPS, BUS BODY BUILDING, VINYL FLOORING, SUNMICA PASTING AND SO MANY OTHER USES. THERE IS NO SUBSTITUTE FOR NEOPRENE BECAUSE OTHERS CAN BE USED ONLY FOR SELECTIVE INDUSTRIES AND SELECTIVE PURPOSES.
OUR NET COST OF PRODUCTION (EXPORT QUALITY IS ONLY RS 50 TO 52/LITRE.SINCE WE DON'T HAVE ANY OVEREADS YOU CAN SELL THIS BRAND MINIMUM RS 75/LITRE GIVING RS 15/- TO STOCKIST.
ANOTHER SUPERIOR QUALITY OF NEOPRENE-NET PRODUCTION COST IS RS 35/LITRE. YOU
CAN EASILY SELL THIS QUALITY TO RS 65/LITRE TO WHOLESALE INCLUSIVE OF YOUR
COMMISION AND RS 10/- TO STOCKISTS. YOUR NET PROFIT MINIMUM IS RS 10/- PER LITRE.
YOU CAN EASILY SELL THIS QUALITY AT RS 65/LITRE.TO BIG INDUSTRIES AND STOCKISTS.
3. RUBBER SOLUTIONS
DEMAND IS UNLIMITED. NET PRODUCTION COST IS RS 20/LITRE AND YOU CAN SELL IT
IN 5 LITRE CONTAINERS FOR RS 120/- AND YOU WILL GET RS 4/LITRE. THOUGH NET
PROFIT IS LESS, VOLUME OF
REQUIREMENT IS MORE THAN ANY ADHESIVE. BECAUSE IT IS CHEAPER USED IN SHOES AS
TEMPORARY ADHESIVE. IN 50 ML TUBES IT IS WIDELY USED IN CYCLE, TRUCK TYRE TUBE
PUNCTURES REPAIRING (VULCANIZATION) THROUGHOUT INDIA. MANY SMALL SCALE
INDUSTRIES MANUFACTURING IN INDIA IN EACH STATE. NET PRODUCTION COST OF 50 ML
TUBE IS RS 2.50
AND YOU CAN SELL IT FOR RS 5.00 TO 5.50 PER 50 ML TUBE. YOU CAN GET EASILY
RS1/TUBE AND YOU CAN EASILY SELL 20,000 TUBES TO ONE STOCKISTS. IN CHENNAI CITY
ALONE DEMAND IS 5 LAKH LITRES/MONTH TO LEATHER INDUSTRIES. THERE IS NO LEADING
BRAND IN THIS RUBBER
SOLUTION AND ALL ARE SSI UNITS. INITIALLY YOU WILL MANUFACTURE ONLY 1000 LITRES/
MONTH ONLY FOR 20000 TUBES
4. PVA (POLY VINYL ALCOHOL)
COST OF PRODUCTION IS RS 15/LITRE. LEADERS ARE :
CAMEL IS SELLING 1/2 LITRE PLASTIC CANS AT RS 45/- AND 1 LITRE PLASTIC CANS
AT RS 70/-AND 30ML TUBES RS 4.50 TO 5.50 TO STOCKLIST. WHERAS YOU CAN SELL
EASILY THIS 30ML.PLASTIC TUBE FOR A COST OF RS 3/TUBE AND YOU CAN EASILY GET RS
1.50 TO 1.75/TUBE AS NET PROFIT AFTER GIVING INCENTIVE RS1/-TO STOCKIST.
INITIALLY YOUR PRODUCTION IS ONLY FOR 1,000 LITRES/MONTH (5%CAPACITY) ONLY FOR
TUBES. YOU CAN ALSO SELL TO FRP INDUSTRIES 10,000 LITRES/MONTH WHICH WE HAVE NOT
TAKEN INTO ACCOUNT FOR FIRST YEAR FOR A COST
OF RS 20/-TO RS 25/LITRE. APART FROM THAT PVA IS WIDELY USED IN PAPER MILLS AND
IN LABELLING. IN BULK SALE/LITRE YOU CAN GET RS 5/LITRE.
5 & 6. STARCH GUM POWDER BASED UPON TAPIOCA OR MAIZE STARCH
IT IS USED AS INSTANT GUM POWDER IN CORRUGATED BOX INDUSTRY. EACH UNIT IS
CONSUMING NEARLY 1 TO 2 TONNES/MONTH. SELLING BECOMES EASY WITH PRICE QUALITY
AND 1 MONTH SITE. THERE ARE NEARLY 350 UNITS OF CORRUGATED BOXS IN MADRAS CITY
ALONE. ALL ADDRESSES CAN BE FURNISHED BY US. STARCH CAN ALSO BE SOLD IN THE FORM
OF JELLY ALSO FOR CHEAP
BOOK BINDING AND POSTERS MAKING. ALL INDIA MARKET. NET PROFIT IS RS 2,500 TO RS
3,000/TON.
SELLING PRICE RS 18,000 TO RS 21,000/TON AVAILABLE IN 2 GRADES:
7) DEXTRIN
IS ALSO FROM TAPIOCA STARCH OR MAIZE STARCH (KNOWN AS YELLOW AND WHITE
DEXTRIN) WIDELY USED IN ABRASIVE FOUNDRIES TEXTILE AND PLYWOOD INDUSTRIES. THERE
IS NO LEADER IN THIS PRODUCT. ALL ARE SSI UNITS. DEMAND IS 2,000 TONNES/MONTH
FOR TAMIL NADU ALONE.
AND OTHER STATES CONSUME EQUALLY SIMILAR REQUIREMENT.
8) PVC SOLE MAKING ADHESIVE
PVC CHAPPAL, SHOES (POLY VINYL CHLORIDE) EXCELLENT MARKET THROUGHOUT INDIA. NET PROFIT IS RS 5000/TON
SO TO PUT IT IN NUTSHELL YOU CAN SELL ALL PRODUCTS AT A BEST QUALITY WITH
CHEAPER PRICE. NO NEED TO WORRY ABOUT MULTINATIONALS OR EXISTING COMPETITORS
BECAUSE
YOU ARE TAKING 1/100 OF THEIR PRODUCTION CAPACITY (5% TO 10% DURING THE YEAR) IF
YOU ARE AGGRESSIVE MARKETING PEOPLE, YOUR EXISTING CAPACITY(100%) HAS TO BE
DOUBLED
FOR THE COMING YEARS BECAUSE OF WIDE DEMAND IN INDIA AND ABROAD FOR VINYL
ACETATE (SIMILAR FEVICOL SH)WIDELY USED IN WOOD INDUSTRIES.
PROJECT COST
|
S. NO. |
DESCRIPTION |
COST (IN LAKHS) |
| 1 | TOTAL SHED AREA REQUIRED (RENTED ALSO ADEQUATE AND LAND AREA 1500 SQ METRES) - 200 SQ METRES(2000 SQ FEET) WITH 50 HP POWER | 10.00 |
| 2 | TOTAL COMPLETE PLANT AND MACHINERY WITH ERECTION PIPING, TECHNICAL KNOW-HOW AND COMMISIONING COST | 33.00 |
| 3 | CONTINGENCIES | 3.00 |
| 4 | ELECTRIFICATION | 1.50 |
| 5 | OFFICE | 0.50 |
| 6 |
MARGIN
MONEY FOR WORKING CAPITAL- 1ST
YEAR 50%
CAPACITY - 3 MONTHS |
12.00 |
| 60.00 |
MAIN PARAMETERS :
PROMOTORS CAPITAL 25%-----------15.00 LAKHS
BANKERS CONTRIBUTION------------45.00 LAKHS
NET PROFIT: at 50% of the capacity and only for 1 shift. (Note: The plant can run for 3 shifts)
Product
Working Capital requirement for 3 months in Rs lakhs
Net Profit in 3 months in Rs lakhs
Neoprene based adhesive 6.37 2.62 Vinyl acetate based 5.10 1.50 Rubber solution 3.75 1.05 PVA 2.25 0.75 P.V.C. Chappal Adhesive 9.75 2.25 Corrugation Gum Powder 7.20
1.80 Pasting Gum Powder 6.75 1.35 Dextrin Powder 6.75 1.35 TOTAL 47.92 12.67
For 60% capacity utilisation the Working capital required in 3 months will be Rs 57.00 lakhs and the net profit will be Rs 15.70 lakhs. Likewise, for 70% capacity utilisation the Working capital required in 3 months will be Rs 68.00 lakhs and the net profit will be Rs 18.40 lakhs.
TOTAL
LABOUR REQUIRED-----------10 MALE WORKERS
TOTAL
POWER REQUIRED-------------50 HP
NO
EFFLUENT PROBLEM
TOTAL
WATER REQUIRED/DAY FOR
BOILER AND FEVICOL SH)----5,000
LITRES
TOTAL
FIREWOOD REQUIRED/DAY-------3 TO 5 TONNES/DAY
TOTAL
KEROSENE REQUIRED/DAY------25 LITRES
BREAK
EVEN-----------------------------20 %
NB:---
EXPLOSIVE LICENCE IS REQUIRED TO ACQUIRE TOLUENE, VINYL ACETATE.
TABULAR PRESENTATION OF KEY PARAMETERS
|
PRODUCTS NAMES AND
CAPACITY/ MONTH |
RAW MATERIALS |
PRODUCTION COST |
NET PROFIT |
|
1) VINYL ACETATE BASED ADHESIVE (SIMILAR TO FEVICOL
S.H) 10,000 LITRES/ MONTH |
1)VINYL ACETATE. 2)CAUSTIC SODA. 3)P.V.A 4)SODIUM LAURYL SULPHATE |
RUPEES 30/PER LITRE |
RS 10/PER LITRE-SALES RS 55/LITRE |
|
2) NEOPRENE (SIMILAR TO FEVICOL-SR) 10,000 LITRES/
MONTH |
1)NEOPRENE. 2)TOLUENE 3)PHENOL FORMAL DEHYDE RESIN |
RS 32/LITRE |
RS 8 TO RS 12/LITRE SALES RS 55 TO RS 75/LITRE |
|
3) RUBBER SOLUTION 10,000 LITRES/ MONTH |
1)NATURAL RUBBER 2)RMA-1X. 3)TOLUENE |
RS 25/LITRE |
RS 7/LITRE SALES RS 35 TO 40/LITRE |
|
4) P.V.A POLY VINYL ALCOHOL (SIMILAR TO FEVIGUM)
10,000 LITRES/ MONTH |
1)POLYVINYL ALCOHOL-173 HOT GRADE |
RS 15/LITRE |
RS 8 TO RS 10/LITRE |
|
5) CORRUGATION GUM POWDER FROM MAIZE OR TAPIOCA STARCH
15 TONNES/ MONTH |
1)MAIZE ON TAPIOCA STARCH 2)BORAX,CAUSTIC SODA |
RS 16000/ TONNE |
RS 3000/TONNE SALES RS 19000 TO 21000/TONNE |
|
6) PASTING GUM POWDER-WIDELY USED IN CORRUGATED BOX
MANUFACTURE - 15 TONNES/ MONTH |
1)MAIZE OR TAPIOCA STARCH 2)CAUSTIC SODA 3)BORAX |
RS 15,000/ TONNE |
RS 3000/TONNE SALES RS 18000/TONNE |
|
7) DEXTRIN-AS ABOVE USED IN CASTING AND ABRASIVES-15
TONNES |
1)MAIZE OR TAPIOCA STARCH 2)CAUSTIC SODA 3)BORAX |
RS 15,000/ TONNE |
RS 3000/TONNE SALES RS 18000/TONNE |
|
8) ADHESIVE
P.V.C 10,000 LITRES/ MONTH |
1)RESIN, TOLUENE ETC |
RS 65000/ TONNE |
RS 5000/TONNE |
(Note: The above project details have been sent by our Chennai associate who is very experienced in this line. Plant and Machinery will also be supplied by him. He has supplied the machinery to many successful projects. )