SCHEME ON CORRUGATED BOARD AND BOXES

INTRODUCTION:

         This project profile in detail foresees setting up of unit to produce corrugated board and boxes.
         Paper and paper products are versatile industrial raw materials with a wide variety of application in this era and due to shortage of softwood, wooden packing cases are more and more replaced with corrugated board- boxes and cartons. As more and more materials are coming in paper packing, availability of raw materials are also on the increase. Thus recycling of waste paper is in demand, which can be used to produce products like paperboards, binding sheets, sweet box cartons and other packing cartons.
         80% of industrial packaging is done by carton boxes due to effective cushioning, light weight, easy to fabricate, easy for storing, easy for disposal, no strapping necessary, printing and advertising advantages, must in export market, recyclable etc.

MARKET:

         Corrugated board boxes are used in different area of packing in goods such as: Breweries, Glass wares, Cigarettes, Pharmaceuticals, Biscuits, Milk & Milk products, Soaps, Cosmetics, Tea & Coffee, Hosiery, shoe & footwear industry, toys etc.,

BASIS AND PRESUMPTIONS:

        1.      Single shift of 8 hours a day, 25 days a month and 300 days in a year is presumed. Efficient machines and workers are also presumed.
        2.      Minimum 2 year period is considered for achieving full capacity utilization
        3.      Labour rates are as per the prevailing rates.
        4.      An average interest rate of 14% is considered.
        5.      The estimates are drawn for a production capacity generally considered techno-economically viable for model type of manufacturing activity.
        6.      The information supplied is based on a standard type of manufacturing activity viable for model type of manufacturing activity.
        7.      The information supplied is based on a standard type of manufacturing activity utilizing conventional techniques of production at optimum level of performance.
        8.      Costs in machinery and equipment, raw materials and the selling prices of the finished products etc., are generally prevailing at the time of preparation of the project profiles and may vary depending upon various factors.
        9.      Whereas some names of manufacturers, suppliers of machinery and equipment, raw materials etc. are indicated at the end of the profile, those are by no means exclusive or exhaustive.

IMPLEMENTATION SCHEDULE:

         Normally eighteen months are required for the complete implementation of the project, including machinery erection, raw materials procurement etc.

PRODUCTION DETAIL AND PROCESS TECHNIQUES:

Corrugated Board:

         Corrugated board is made with a corrugated sheet of paper attached to the facing of flat paper, usually kraft by adhesives. In our country, it is mostly produced over a single facer machine here two paper reels are run together, one layer of paper becomes corrugated after passing through the heated rolls and the other is brought into contact with it after the former having glued at the tips. Thus both get pasted together and are wound in rolls. The resulting roll is now known as single face/ corrugated roll/board. By cutting this roll with board cutter and then gluing the corrugated side by a pasting machine and placing 3rd ply of paper over it double faced or 3-ply corrugated board is produced, this board is kept under pressure in a sheet pressing machines for some time for setting of the wet glued sheets. Similarly board can be pasted to form thicker boards i.e.; 5-ply, 7-ply and 9-ply etc.

Corrugated Board Boxes:

         The process of manufacturing boxes or containers constitutes five operations.

        i)         Slitting and Longitudinal Cutting
        ii)        Creasing
        iii)       Slotting
        iv)       Flap or Corner Cutting
        v)        Stitching
         After passing the sheet through these operations, a box or container is ready, slitting and creasing operations can simultaneously by carried over a 4 bar rotary cutting and creasing machine. The trimmed and creased sheet is slotted and flap cut on an Eccentric Slotted Machine. Finally, it is either stitched over a stitching machine or glued/taped manually.
For partition boxes the half slotted boards are used which can conveniently be produced over a partition spotter machines.

III. LAND AND BUILDING

1 Land 2 lakhs
2 Building - - Office - 200 sq. ft.
Go-down - 2000 sq. ft.
Production Area - 2800 sq. ft.
Total - 5000 sq. ft.
 
   
   
  8 lakhs
  Total 10 lakhs

IV. PLANT AND MACHINERY

1
Single face paper corrugation Machine
4 lakhs
2
Two Board Cutters with one reel stand light model
1 lakhs
3
One Sheet Pasting Machine
0.75 lakhs
4
One sheet pressing
1 lakhs
5
One 4-Bar Rotary Cutting & Creasing
2 lakhs
6
One Eccentric Slotted
2 lakhs
7
Two stitching machines
i) One 36” arm angular head
ii) One 48” arm, straight head
 
 
0.55 lakhs
 
.50 lakhs
Total
11.8 lakhs
 
Packing, forwarding, excise, insurance, sales-tax, freight etc.
1.23 lakhs
Total
13.03 lakhs
 
Office furniture
0.5 lakhs
 
Erection and electrification
1.2 lakhs
Total
14.73 lakhs

A. RAW MATERIALS (Monthly)

1
Kraft paper Rs.40 /- per kg.
50 Tons
20.00 Lakhs
2
Glue (Starch)
4 Tons
1.20 Lakhs
3
Stitching wire
330 Kg.
0.17 Lakhs
 
Total
21.37 Lakhs

B. STAFF AND LABOUR (Monthly)

1
Manager
1
5,000
2
Accountant cum Typist
1
3,000
3
Skilled Worker
6
15,000
4
Semiskilled worker
5
10,000
5
Unskilled worker
4
6,000
6
Watchman cum Peon
2
3,000
 
Total
42,000
 
Add perks 20%
 
8,000
 
Total
50,000
 
Electricity
 
8,000
 
Water
 
2,000
 
Fire Wood
 
1,300
 
Total
9,500

C. OTHER EXPENDITURE

1
Postage and Stationery
2,000
2
Telephone
3,000
3
Traveling
5,000
4
Transport
7,500
5
Insurance and Taxes
2,000
6
Repair and Maintenance
5,000
7
Misc.
1,500
 
Total
26,000
 
Total Working Capital for a month A+B+C+D
22,22,500
 
For 3 Months
66,67,500

TOTAL INVESTMENT

Land and Building
10.0 Lks
Plant and Machinery
14.73 Lks
Working Capital
66.68 Lks
Total
91.41 Lks

COST OF PRODUCTION AND PROFITABILITY (Annual)

1
Total expenses for one
266.7lakhs
2
Interest on fixed capital (13%)
3.125 lakhs
3
Interest on working capital (15%)
10.002 lakhs
4
Depreciation 10%
2.10 lakhs
 
Total
281.925 lakhs

SALES REVENUE (Annual)

        By sale 600 MTs of corrugated boxes @ Rs.50 /- per kg. 300 lakhs

        Gross Profit = 300-282        = 18lakhs

        % Profit on investment         = 18 x 100 / 91.41

        = 19.69 %

BREAK EVEN ANALYSIS:

        Fixed cost per annum

        1.         Interest on capital investment - ---------3.125
        2.         Depreciation -------------------------- 2.10
        3.         40% of salaries and wages ------------ 20000
        4.         40% of other expenses --------------- 10400
        Total -------------------------------------------------552900

         B.E.P = Fixed Cost x 100 / Fixed Cost + Profit

        = 552900 * 100 / 552900 + 1800000

        = 23.50 %

        ADDRESSES OF MACHINERY MANUFACTURERS

1.      M/s.. Shree Krishna Engineering Works     
         Kinkhabwala Wadi Sahara Darwaja, Surat – 395 003

2.      M/s. Anil & Co.
         68 N.G.O.’s Colony Rajendranagar, Mysore

3.     M/s. Indo-Europa Trading Co. (P) Ltd.
        Kubera Building,21/10
        Sunkurama Street, Chennai - 600001

4.     M/s. Natraj Machinery Pvt. Ltd.
        66 Sector – 27 C, Faridabad

        ADDRESSES OF RAW MATERIAL SUPPLIERS

1.         M/s. Industrial Chemicals &
            Adhesives Amar Hills, Saki Vihar Road
            Powal, Mumbai - 400072

2.         M/s. Vijay Industrial Adhesives
            453, GIDC Estate, Makarpura
            Vadodara 390 010

3.         M/s. Corn Products Co. (India) Pvt. Ltd.
            Shree Niwas House, Hazarimal Somari Marg,
            P.O. Box No.994, Mumbai 400 001

4.         M/s. Synthetic Glue & Chemical Industries
            21 Goneka Lane, Calcutta-7

5.         M/s. Anoopam Adhesives 159,
            Vithal Udyognagar
            Vallabh Vidyanagar 388 120

6.         M/s. Ad hesives & Chemicals
            Arcot Road, Porur Madras – 602 104

7.         M/s. Gold Adhesives Industries
            Compound Hemansuray Road,
            Malad (West) Mumbai 400 064

8.         M/s. Vijay Adhesives Industries
            6 Friends Colony, G.T. Road
            Shahdara Delhi - 110032

9.         M/s. Synthetic Glue Chemicals Ltd.
            D-104 Industrial Area
            Bulandeshahr Road , Ghaziabad

        STITCHING WIRE MANUFACTURERS

1.         M/s. Pearls Products
            Amar Hill, Saki Vihar Road
            Powal, Mumbai-400 072

2.         M/s. Universal Wire
            Manufacturing Co.
            61/63 Jalan Wadal, Gokhle
            Road (South), Dadar
            Mumbai-400 028

3 .        M/s. Hindustan Wire Industrie
            10/11 Ramruddin Industrial Estt.
            Kurla Andheri Road
            Mumbai-400 072

4.         M/s. Variety Traders
            10/14 Janjikar Street
            Steel House
            Mumbai-400 003

5.         M/s. Mehta Brother
            44 Undria Street Mumbai-9

6.         M/s. International Wire Industries
            Patwa Chambers, 5th Floor Room No.55,
            Clive Road Opp. Masjid Railway Station
            Mumbai-8

7.         M/s. J.R. Desai & Co.
            71-73 Chakla, Mumbai-3

8.         M/s. Renown Steel
            Sales Corporation Steel Chambers
            Branch St., Mumbai-9

9.         M/s. Saif Steel Traders
            Steeel House, 10/14
            Janjikar Street Mumbai-1

10.       Standard Trader (India)
            202 Himalaya House,
            Palton Road Mumbai-1

11.       M/s. United Export Trading Co.
            512 Loha Bhawan, P.O. Mello Road Mumbai

        LIST OF PAPER MANUFACTURERS INDIA

1.         M/s. Titaghur Paper Mills Co. Ltd., Chartered Bank Bldg., Calcutta
2.         M/s. India Paper Pulp Co. Ltd., 8 Clive Row, Calcutta
3.         M/s. Bengal Paper Mills Co., 14 Netaji Subhash Marg, Calcutta
4.         M/s. Star Paper Mills Ltd., Brabourne Road, Calcutta
5.         M/s. Rohtas Industries Ltd., Dalmianagar
6.         M/s. Oriented Paper Mills Ltd., Birla Building, 9/1 RN Mukherjee Road, Calcutta
7.         M/s. Ashoka Paper Mills Ltd., 8 Russel Street, Calcutta
8.         M/s. Straw Products Ltd., (J.K.) Nehru House, 4-B, S. Zafar Marg, New Delhi
9.         M/s. Ballarpur Industries Ltd., (Shree Gopal Division), Thaper Hose, 124 Janpath, New Delhi
10.       M/s. Orient Paper Mills Ltd. (Amlai, Bhopal) Birla Bldg., 9/7 R.N. Mukherjee Road,
            Calcutta
11.       M/s. Rohit Pulp & Paper Mills Ltd., Rohit Chambers, Ghoga Street, Mumbai-400 001
12.       M/s. Paper & Pulp Conversions Ltd., 1183 Shivajinagar, Fargusson College Road,
            Poona
13.       M/s. Laxmi Board & Paper Mills Pvt. Ltd., 23 Raman Street, 3rd Floor, Mumbai
14.       M/s. Sirpur Paper, Sirpur, Kaghaznagar
15.       M/s. Andhra Pradesh Pulp & Paper Mills Ltd., Rajamundry-1
16.       M/s. West Coast Paper Mill Ltd., Sreenivas House, Dr. Somani Marg, Fort, Mumbai
17.       M/s. Mysore Paper Mills Ltd., Bhadravati
18.       M/s. Modhya National Paper Mills Ltd., 7, Museum Road, Bangalore
19.       M/s. Punalur Mills Ltd., Punalur, Travancore
20.       M/s. Sheshasye Paper & Boards Ltd., p.O. Cauvery (Salem) Erode
21.       M/s. Sun Paper Mills Co. Ltd., Post Bag No.2, Cheranmahadevi, Tirnelveli Distt.
22.       M/s. Tribeni Tissu Ltd., 3, Middleton Street, Calcutta
23.       M/s. Upper India Couper Paper Mills Ltd., Masjid Both, Lucknow
24.       M/s. Chemopulp Tissues, A-4, Sect.CX II Meerut Road, Ghaziabad
25.       M/s. Swatantra Bharat Paper Mills, L5/7, D.B. Gupta Road, New Delhi
27.       M/s. Central Pulp Mills Co., Fort Sonagath, Dist.
28.       M/s. Deccan Paper Mills Co. Ltd., Commonwealth Bldg., Poona
29.       M/s. Amravathi Shri Venkatesh Paper Mills Ltd., P.O. Udurmalpeth, Madathukula,
            Tamil Nadu .
30.       M/s. Asspcoated Pulp & Paper Mills Ltd., B, Jadav Chambers, 2nd Floor, Ashram
            202 Himalaya House, Palton Road
31.       M/s. Shamli Paper Mills Ltd., Shamli (U.P.)