Stone Processors

STONE PROCESSORS

A Business Plan submitted in partial fulfillment of the requirements for the Degree of Bachelor of Technology Under Biju Pattnaik University of Technology

By

Vikas Kumar Sabata

Roll # ECE200425380

Sagar Singh

Roll # IT200410162

Biswa Ranjan Mahapatra

Roll # IT200410442

Sanjit Tripathy

Roll # IT200425228

March - 2008

Under the guidance of

Mr. Jagannath Mohanty

NATIONAL INSTITUTE OF SCIENCE &TECHNOLOGY

PALUR HILLS, BERHAMPUR, ORISSA – 761008, INDIA

ABSTRACT The project under consideration is an essential ingredient manufacturing unit in construction segment. In fact locally there is immense requirement of granite stone chips, metals, boulders from different quarters like private construction works, contractors on jobs and public sector agencies like Railways & other projects. With the rise in population and standard of living there is significant increase in constructional activities which has created tremendous demand for crushed stone. The demand of said crushed stone will continue to grow day by day.

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ACKNOWLEDGEMENT We express our deep sense of gratitude to, Mr. Jagannath Mohanty, Project Advisor, for his valuable guidance and constant unfailing encouragement for completing this project. We are also grateful to our friends for tirelessly and patiently pursuing us to finish this report without whose help completion of the project report was the next thing to impossible. Last, but not the least, We give our sincere thanks to Dr. B. Pawan Kumar, for giving us the opportunity and creating a nice work environment for us to complete our Business Plan report within the stipulated period of time. Finally, I would like to thank Mr. Sangram Mudali for providing us proper environment for the completion of the report.

Vikas Kumar Sabata Sagar Singh Biswa Ranjan Mahapatra Sanjit Tripathy

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TABLE OF CONTENTS ABSTRACT...................................................................................................................2 ACKNOWLEDGEMENT..............................................................................................i TABLE OF CONTENTS...............................................................................................ii 1. INTRODUCTION......................................................................................................4 4 2. GENERAL INFORMATION....................................................................................5 2.1 NAME OF THE ENTERPRENUR......................................................................5 2.2 PROPOSED PROJECT........................................................................................5 2.3 MAJOR PRODUCTS/SERVICES......................................................................5 2.4 PROPOSED LOCATION ...................................................................................5 2.5 TYPE OF ORGANISATION...............................................................................5 3. ENTREPRENUER PROFILE ..................................................................................6 4. TYPE OF THE PRODUCT / SERVICES ................................................................7 5. MARKET POTENTIAL............................................................................................8 5.1 PRESENT DEMAND AND SUPPLY OF THE PRODUCT..............................8 5.2 COMPETITION...................................................................................................8 5.3 TARGET CLIENTS/SELECTED MARKET AREAS........................................8 5.4 MARKET STRATEGY.......................................................................................8 6. MANUFACTURING PROCESS..............................................................................9 6.1 TECHNICAL KNOWHOW AVALABILITY....................................................9 6.2 STEP BY STEP DISCRIPTION OF THE MANUFACTURING.......................9 6.3 PRODUCTION SCHEDULE..............................................................................9 7. DETAILS OF THE PROPOSED PROJECT...........................................................11 8. WORKING CAPITAL (one month)/One Cycle......................................................18 9. TOTAL COST OF THE PROJECT.........................................................................19 10. MEANS OF FINANCE.........................................................................................20 11. PROFITABILITY PROJECTIONS.......................................................................21 12. BREAK EVEN POINT..........................................................................................22

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ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

1. INTRODUCTION

The project under consideration is an essential ingredient manufacturing unit in construction segment. In fact locally there is immense requirement of granite stone chips, metals, boulders from different quarters like private construction works, contractors on jobs and public sector agencies like Railways & other projects. With the rise in population and standard of living there is significant increase in constructional activities which has created tremendous demand for crushed stone. The demand of said crushed stone will continue to grow day by day. The unit will market its products to various contractors engaged in National highway expansion and Gopalpur Port. Further the unit can cater to the demand of Railways by supplying to their existing stockyard at Surla Road. Besides, There is good demand of stone chips in private construction works, construction of roads & mfg. of Hume Pipes & PSC Poles in and around Ganjam Dist. . The unit can cater to the needs of Gajapati & Kandhmal Dist.. The proposed mega energy project at Pati Sunapur , SEZ by TATA group near Gopalpur will be a major market source for the unit in future.

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ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

2. GENERAL INFORMATION 2.1 NAME OF THE ENTERPRENUR Mr. Vikas Kumar Sabata Mr. Sagar Singh Mr. Biswa Ranjan Mahapatra Mr. Sanjit Tripathy

2.2 PROPOSED PROJECT Stone Processors.

2.3 MAJOR PRODUCTS/SERVICES Stone chips, metals, boulders.

2.4 PROPOSED LOCATION Arendra under Chikiti tehsil, block Chikiti, Pitatali

2.5 TYPE OF ORGANISATION Private Limited Company

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ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

3. ENTREPRENUER PROFILE 1.

Name : Vikas Kumar Sabata Educational Qualification: Bachelor of Technology Technical Skills: C,C++,VLSI

2.

Name : Sagar Singh Educational Qualification: Bachelor of Technology Technical Skills: C,C++,Core Java.

3.

Name: Biswa Ranjan Mahapatra Educational Qualification: Bachelor of Technology Technical Skills: C,C++,Core Java.

4.

Name: Sanjit Tripathy Educational Qualification: Bachelor of Technology Technical Skills: C,C++,Core Java.

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ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

4. TYPE OF THE PRODUCT / SERVICES 1.

Type of the Project : Small Scale Industry.

2. Product / Services Description : Stone chips, metals, boulders for private construction works, contractors on jobs and public sectors agencies like railways, national highway authority of India (NHAI).

3. Major Consumers : Contractors of private constructions and public sectors agencies like Railways, National Highway authority of India (NHAI).

PROMOTERS: 1. Major Promoter of our project will be loans taken from banks. 2. Capital from reliable and Supportive Capital Ventures.

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ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

5. MARKET POTENTIAL 5.1 PRESENT DEMAND AND SUPPLY OF THE PRODUCT The unit will market its products to various contractors engaged in National Highway expansion and Gopalpur port. Further it can cater to the demands of Railways by supplying to the existing stockyard at Surla road. Beside there is good demand of stone chips in private construction works, construction of roads and manufacturing of Hume pipes and PSE poles in and around Berhampur town. The proposed mega Energy Project at Pati Sunapur will be a major market source for the unit in future.

5.2 COMPETITION Since requirements for crushed stones has been increasing due to various construction works, the unit will not come across stiff market competition.

5.3 TARGET CLIENTS/SELECTED MARKET AREAS Railways, NHAI (National Highway authority of India) , Private contractors.

5.4 MARKET STRATEGY At present good demand of the product.

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ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

6. MANUFACTURING PROCESS 6.1 TECHNICAL KNOWHOW AVALABILITY Retired civil engineer from PWD Mr A.Behera.

6.2 STEP BY STEP DISCRIPTION OF THE MANUFACTURING  Name of the Job  Raw Material

Stone Processor. Granite bolder of size: 9” to 10”.

 Crushing of raw material in jaw crusher.  After crushing stone chips & metal came out with the help of conveyor belt.  Storage of stone chips & metal separately.  Ready for inspection  Dispatch as per requirement of the party

6.3 PRODUCTION SCHEDULE  NO. OF WORKING DAYS PER ANNUM

- 300 days

 NO. OF WORKING HOURS PER DAY –8 AM to 4 PM (8 hours single shift)  INSTALLED CAPACITY(ANNUAL)

 UTILIZED CAPACITY (%) 

1ST YEAR:50 % 9

- 96000 MT

ENTREPRENEURSHIP PROJECT – STONE PROCESSORS



2ND YEAR:

60 %



3RD YEAR:

70%

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ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

7. DETAILS OF THE PROPOSED PROJECT A. LAND AND BUILDING

Sr.No.

Particular

Area Required

1.

Land

Ac.3.565

2.

Land development

3.

Motor room

4.

Ramp

5.

Total Value Rs.10,00,000/Rs.5,00,000/-

150 sq.feet@Rs 250/-per sq. feet 20’ ht

Rs 37,500/-

Office Room

288 sq.feet @ Rs 200/- per sq.ft

Rs 57,600/-

6.

Stone Room

1694 sq.ft @ Rs 150/- sq.ft

Rs 2,54,100/-

7.

Workshop

1484 sq.ft@ Rs 150/-sq.ft

Rs 2,22,600/-

8.

Labour shade-1

1600sq.ft @ Rs 150/-sq.ft

Rs2,40,000/-

9.

Labour shade-2

650sq.ft @ Rs 150/-sq.ft.

Rs 97,500/-

10.

Bore well

Rs 2,00,000/-

Rs 50,000/Total

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Rs 26,59,300/-

ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

B. MACHINERS/EQUIPMENTS:

Sr.No. 1 2 3

4 5

6

Description

Nos. Required

Mechtech make Double Toggle , Oil lubricated jaw Crusher: 22”x 9” Mechtech make Double Toggle , Oil lubricated jaw Crusher: 20”x12” Vibrating Screen for separation of different grade of crushed materials Conveyer system: @Rs.750000/250 KVA,11/4kv Transformer, Sub-station with poles, structures, 15 nos. of PSC poles, conductors Electric Motors (30HP-for Crushers) (10HP-for Vibrating Screen)(5HP-for Elevators)

Rate

1

Rs. 5,82,400/-

Rs.5,82,400/-

1

Rs 5,94,048/-

Rs 5,94,048/-

1

Rs 3,25,000/-

Rs 3,25,000/-

6

Rs 4,50,000/-

Rs4,50,000/-

Rs 4,90,000/-

Rs4,90,000/-

9

Rs 4,25,000/Total:

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Total Value

Rs 4,25,000/Rs 28,66,048/-

ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

C. MISC. FIXED ASSETS:

Nos. Required 1

Rate (Rs.) 15,000/-

Tool

1

6,000/-

3

Testing equipment

1

3,000/-

3,000/-

4

Office equipment, furniture Misc.

1

5,000/-

5,000/-

1

1,000/-

1,000/-

Total:

30,000/-

Sr.No.

Particulars

1

Electrical equipment

2

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D. PRELIMANARY AND PRE-OPERATIVE EXPENSES

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Total Value 15,000/6,000/-

ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

Sr.No. 1. 2. 3. 4. 6.

Particulars Interest during implementation Establishment expenses Start-up expenses Stamp and duties (court) Licensing expense

Amount(Rs.) 43,020/20,000/15,000/20,000/20,980/Total 1,19,000/-

E. SALES REVENUE:

Year

Item(s)

Quantity Sold/Year 18,800MT 10,000M

Stone chips Metals

Rate per unit(Rs.) 250/250/-

Sales Realization(Rs.) 42,00,000/30,00,000/-

Total:

72,00,000/-

T

F. RAW MATERIAL (MONTHLY REQUIREMENT)

Sr.No. 1

Item(s) Granite bolder

Quantity

Rate(Rs.)

4000MT

75/MT

Total Value(Rs.) 3,00,000/-

Total

3,00,000/-

of size: 9” to 10”

G. UTILITIES – MONTHLY

Sr.No. 1.

Particulars Power/Electricity

Annual Expenditure 4,00,000/-

Remarks Rs. 4.20 per unit

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ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

4.

Any other item

3,000/Total

4,03,000/-

H. MAN POWER(Salaries/Wages)- Monthly

1

Manager

1

Rs 4,000/-

Rs 4,000/-

2

Machine

1

Rs 3,000/-

Rs 3,000/-

3

man/Fitter Clerk-cum-

1

Rs 3,000/-

Rs 3,000/-

4

Accountant Watchman

1

Rs 2,000/-

Rs 2,000/-

5

Unskilled worker

10

Rs 2,000/-

Rs 20,000/-

Total

Rs 32,000/-

Annual – 12 x 32000 = RS 3, 84,000/-

I. REPAIRS AND MAINTENANCE- Monthly

Sr.No.

Particulars

Amount(Rs.)

1

Lubricant

3,000/-

2

Bearing, jaw

6,000/-

3

Mechanical repair

1,500/-

4

Others

1000/Total Annual – 12 x 11,500= Rs. 1,38,000/15

11,500/-

ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

J. SELLING AND DISTRIBUTION EXPENSES- Monthly

Sr.No.

Particulars

Amount(Rs.)

1.

Publicity Expenses

5,000/-

2.

Traveling

3,000/-

3.

Freight

40,000/-

4.

Commission

20,000/-

5.

Misc.

2,000/Total:

70,000/-

Annual – 12 x 70,000 = Rs. 8, 40,000/-

K. ADMINISTRATIVE EXPENSES- Monthly

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Remarks

ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

Sr.No.

Particulars

Amount(Rs.)

1.

Stationary

1,500/-

2.

Post/Telephone/Fax

4,000/-

3.

Guest Entertainment Expenses

10,000/-

4.

Misc.

4,500/Total:

Remarks

20,000/-

Annual – 12 x 20,000 = Rs. 2, 40,000/-

L. INTEREST- Annual

Loan Amount(Rs.)

Interest(Rs.)

Installment(Rs.)

Balance(Rs.)

43,93,800/-

5,27,256/-

10,30,796/-

33,63,004/-

Total

33,63,004/-

M. DEPRECIATION

Sr. No.

Type of Asset

Cost of Asset

Depreciation

Amount

(WDV)

1.

Buildings

26,59,300

5%

1,32,965/-

2.

Plant & Machinery

19,51,048

10%

91,500/-

3.

Moulds & Equipments

9,15,000

15%

1,37,250/-

Total: 3,61,715/-

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ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

8. WORKING CAPITAL (one month)/One Cycle

Sr.No.

Item

Rs.

1.

Raw-Material

3,00,000/-

2.

Salary/Labour

32,000/-

3.

Administrative expenses

20,000/-

4.

Repairs and Maintenance exp.

11,500/-

5.

Selling and distribution expenses

70,000/Total

Annual – 4, 33,500 x 12 = 52, 02,000/-

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4,33,500/-

ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

9. TOTAL COST OF THE PROJECT

Sr.No

Particulars

Total Value(Rs.)

1.

Fixed Capital

55,55,348/-

2.

Working Capital(One Cycle)

4,33,500/-

3.

Preliminary and pre-operative exp.

1,19,000/-

4.

Cost escalation & Contingencies

Nil Total:

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61,07,848/-

ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

10. MEANS OF FINANCE

Sr.No.

Particulars

Percentage of Loan

Amount(Rs.)

1.

Own Investment

40%

29,29,000/-

2.

Term Loan

60%

43,93,800/Total:

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73,23,000/-

ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

11. PROFITABILITY PROJECTIONS

Sr.No.

Particulars

Amount(Rs.)

1.

Annual Sale Realization

72,00,000/-

2.

Cost of Manufacturing/Servicing

61,05,000/-

A

Annual Working Capital

52,02,000/-

B

Annual Interest on Loan

5,27,256/-

C

Annual Depreciation

3,61,715/Total: 60,90,971/-

3.

Gross Profit/Loss(A-B)

4.

Income-tax

5.

Net Profit/Loss

10,95,000/25% 8,21,250/-

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ENTREPRENEURSHIP PROJECT – STONE PROCESSORS

12. BREAK EVEN POINT

Break Even Point = (Fixed cost * 100) / (Fixed cost + Profit) = (19, 87,800 *100) / (19, 87,800 + 8, 21,250) = 50.76

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