Surgical gloves are widely used in hospitals, confectionaries, software industries etc. They provide protection to the hand from dirt, infection etc and avoid contamination with minimal compromise of sensitivity while providing great flexibility and sterile environment.

RAW MATERIAL:

The main raw material used is 60% latex from rubber plantations. They are abundant in Kerala, Tripura, Karnataka and Tamil Nadu.

PLANT COMPOSITION:

Complete plant and machinery will be supplied by our associate Consultancy Engineers on turnkey basis. This project is their specialty. Complete plant and machinery will cost Rs.47.00 lakhs. (Forty Seven Lakhs only).

PRODUCTION CAPACITY:

5000 pairs of surgical gloves per 8 hours shift.

PRODUCT SPECIFICATION:

The product is as per ISI Standard 4148/1986. Sizes are 6”, 6½” 7”, 7½”, 8”.

WATER REQUIREMENT: 

2000 litres of water is required for compounding latex, bleaching and washing purposes and also required for boilers.

MAN POWER:

Totally 20 workers are required. In that male workers are 6 and remaining are female workers per shift.

POWER REQUIREMENT: 40 HP Power is required

FACTORY AREA:

About 3000 sq. ft. Area for production, storage for raw material, final product, laboratory, boiler room and office.

MARKETING:

There is great demand for this product which is increasing day by day. With rising of hospital sectors in government and private hospitals, demand is excellent and unlimited. It can be marketed as:

1. Sterilized.

2. Non-sterilized.

The Gloves are sterilized by gamma ray irradiation packed in peel-off packets. Non-sterilized are packed in 25 gloves or 10 gloves in a box. Price ranges from Rs.6/- to Rs.10/- per pair for sterilized gloves and Rs.5 to 6/- for non-sterilized gloves per pair.

PLANT AND MACHINERY:

1. Dipping machine 600 gloves per hour.
2. Pre-drier
3. Vulcanizing chambers
4. Compounding assembly
5. Boiler
6. Ceramic Moulds for surgical gloves
7. Mould frames
8. Trolleys
9. Railings
10. Ball Mill etc.

PROJECT COST:

The Project cost including land, buildings, Plant & machinery, margin money etc works out to about Rs 80.00 lacs.        

MARGIN REQUIRED:

1. 50% capacity working capital requirement: Rs 6.20 lakhs in 1st year.

2. 60% capacity working capital requirement: Rs 8.40 lakhs in 2nd year.

3. 70% capacity working capital requirement: Rs 9.50 lakhs in 3rd year.

Net cost of Production is about Rs.4.62 per pair for sterilized gloves

Sale Price ex factory of sterilized surgical gloves per pair varies from Rs. 6.00 to Rs.12.00 per pair and non-sterilized gloves Rs.4.50 to Rs.5.50 per pair.

Projected Ratios & Financials:

The following ratios and parameters are calculated at the assumed selling price of Rs 6.00 per pair and further assuming 5% increase in sale price every year. 

1. Internal Rate of Return : 34%

2. Debt Service Coverage Ratio : 2.52

3. Net Cash Accruals are about Rs 14.00 lakhs in 1st year, Rs 21.50 lakhs in 2nd year, Rs 30.25 lakhs in 3rd year etc.

4. Cash Break even point is 27% of production at 70% capacity utilisation.