PROJECT PROFILE Product : Offset Printing Press (Job Work)

Product Code

289018013

Quality and Standards

As per Customers Specifications

Production Capacity

i) Qty. ii) Value

= 1,50,000 = 1,95,00,000

Month & Year of Preparation :

March-2011

-: Prepared by :Micro, Small & Medium Enterprises Development Institute, Government of India, Ministry of MSME, 22 Godown, Industrial Estate, Jaipur- 302005 (Rajasthan) Phone : (0141) 2212098, 2213099 Telefax :(0141) 2210553 Email : [email protected] Web Site: www.sisijaipur.gov.in.

INTRODUCTION:Offset Printing is the latest method of Printing System in any language. The method of printing earlier days by rotary printing press in which the matter to be printed was to be first composed manually. In offset printing, the matter which is to be printed is fed into the computer and after that with the of camera, it is exposed and film is prepared through chemicals and put into offset printing machine to take out the print. Offset printing method is the latest one where the quality is very fine in comparison to the previous method. MARKT POTENTIAL Today is the age of technology. Offset Printing Press is the example of new technology. The required material may be printed in minimum time with good other business activities is increasing day by day. The require stationery, books and other printed materials. Therefore Offset Printing Press has very good scope, particularly in urban semi urban areas. BASIS AND PRESUMPTIONS i) This Report is worked out the basis of 75% utilization annum. ii) iii) The machinery and equipment are of standard make. The cost of raw materials and other expenditure is approximate and based on current market rates. Contd2 capacity

on single shift and 300 working days per

(2) iv) v) vi) The period for achieving capacity utilization is estimated to be one year after commencement of production. Interest rate for fixed and working capital has been calculated @ 12% per annum. Pay back period would commence after 12 months and repayment period is estimated as 3 years. IMPLEMENTATION SCHEDULE 1. The entrepreneur has to arrive at a decision in order to select this product. The guiding factor in this regard would be the market potential, demand and supply gap and availability of resources. It may take 2 to 3 weeks time. 2. After selecting the product, the entrepreneur has to get E . M . Part-1 from DIC so that he can apply allotment of land, power etc. for which about one week time is required. 3. In order of obtain financial Institutions, like Commercial Banks or State Financial Corporations, a detailed Project Report is required to be prepared. On the basis of the Report, financial institutions may take 8 to 12 weeks time for sanctioning and disbursing the loan. Accordingly orders for purchase of raw materials is also to be finalized and recruitment of key staff is to be done. This would require 3 to 4 weeks time. Contd.3

(3) TECHNICAL ASPECTS Process of Manufacture Composing of matter which is to be printed is done on computer with the help of special softwares such as Corel Draw, Photo Shop, M.S. Office, page Maker etc. Thereafter a film is produced with the help of a camera. This film is called negative. The matter, which is to be printed, is taken on this film/negative. The negative and a aluminium plate are put into the printing down frame/exposer. Before starting the exposer, the presetting of timer is done in the timer/watch. Generally is takes approx. 200 seconds for making positives. The time exposer is switched off automatically as soon as positive has been built up. The image developer is spread on the plate, which is called positive. After that the developer is spread on the plate followed by washing with the fresh water. During this process, the matter gets printed on the plate automatically. Thereafter, the aluminium plate is fitted in the offset printing press. This plate is called P.S. Plate, when it is used for first time and thereafter it is called Y-Pon Plate. The papers are cut on Paper Cutting Machine. Then the papers are fed one by one into Offset Printing Press. Generally the capacity of Offset Printing Press is 4000 impressions per hour. Contd.4

(4) QUALITY CONTROL AND STANDARDS As per Customers requirements. PRODUCTION CAPACITY ( PER ANNUM) Quantity 1,44,000 Nos. (Magazine/ Souvenir) MOTIVE POWER POLLUTION CONTROL The manufacturing activity does not any pollution as such no special pollution measures are required. FINANCIAL ASPECTS A. Fixed Capital (i) Land & Building Covered Area 200 Sq. Mtrs. ( Rented ) (II) Machinery & Equipment S. No. 1. Indigenous Qty. /Imported (Nos. ) Off Set Printing Machine Size Ind. 1 18 X 25 Single Colour with 5 HP Dominent Make 2. Computer with Printer and Ind. Softwares 1 65,000/Description Total (in Rs.) 10,00,000/Rs. 10,000/Value Rs. 1,44,00,000

Contd..5

(5)

3.

4. 5. 6. 7.

Printing Down Frame/ Exposer size 23 X 36 ( MakeMemory) Paper cutting Machine Size 23 X 36 , 2 HP Paper Cresing M/c Paper Stapler M/c Binding and Measuring Equipment

Ind.

80,000/-

Ind. Ind. Ind. Ind.

1 1 1 -

16,00,000/12,000/10,000/8,000/-

Electrification and Installation Charges @ 1 Office Furniture and Equipment Total (iii) Pre- Operative Expenses Total Fixed Capital C. Working Capital ( Per Month) (i) Personnel S/No. 1. 2. 3. 4. Designation Nos. 1 1 1 1 1 Total Rs. Say

13,35,000/= 75,000 _________ 15,43, 500 10,000/15,53,500/-

Manager/ Supervisor Skilled Workers Unskilled Workers Accountant- cum- Typist (Part time) 5. Watchman/Poen Add. Perquisties @ 15%

Salary (in Rs.) 8,000/6,000/5,000/5,000/4,000/-

Amount ( in Rs.) 8,000/6,000/5,000/5,000/4,000/4,200/32,200/-

Contd.6

(6) (ii) Raw Material ( Per month) S/No. 1. Particulars Art paper size 23 X 36 Qty. 500 Ream 2. 3. Card Sheet Aluminium Plate 1500 2 Nos. 4. 5. 6. 7. 8. Ink Developer Gum Multi Colour Staple Pin etc. 1Kg. 3 Kg. 4 Kg. L.S. L.S. 600/225/150/600/675/600/4,000/5,00/13,77,975 13.78,000 14 300 21,000/600/Rate(Rs.) 2,700/Value(Rs.) 13,50,000/-

Total Rs. Say Rs.

(iii) Utilities ( Per Months) (a) (b) Electirc Power @ 4.50 Per unit Water Charges Total 13 H.P. L.S. 7,000/6,00/7,600/-

Contd..7

(7) (iv) Other Contingent Expenses (Per Month) Rent Processing charges of Cover Page Design Transportation Charges Postage & Stationery Telephone Publicity Insurance and Taxes Miscellaneous Expenses Total 10,000/4,000/3,000/2,000/3,000/1,000/2,000 2,000/27,000/-

(v) Total Recurring Expenditure ( Per Month) (i) + (ii) + (iii) + (iv) (vi) Total Working Capital for 3 Months = = D. Total Capital Investment (i) Fixed Capital Total: = = 15,53,500/43,34,400/58,87,900/(ii) Working Capital ( for three months) = 3 X 14,44,800 43,34,400/= 14,44,800/-

Contd..8

(8) FINANCIAL ANALYSIS (1) Cost of Production ( Per Year) - Recurring Expenditure - Depreciation on Mchinery & Equipment @ 10% - Depreciation on Office Furniture & Equipment @ 20% - Interest on Total Capital Investment @ 12% Total : Say : (2) Turnover ( Per Year) Item Magazine/ Souvenir Qty. 1,50,000/Rate (Rs.) 130/Value (Rs.) 1,95,00,000/7,06,548/1,81,92,648/1,81,93,000/15,000/1,73,37,600/13,35,000/-

(3) Net Profit ( Per Year ) ( Before Taxation) Annual Profit = Turnover = = (4) Net Profit Ratio = Net Profit Per Year X 100 ___________________ Turnover per year 113,07,000 X 100 ________________ 1,95,00,000 6.7 % Contd.9 Cost of Production 1,81,93,000 1,95,00,000 13,07,000/-

(9) (5) Rate of Return = Net Profit Per Year X 100 ______________________ Total Capital Investment = 13,07,000 X 100 ______________ 58,87,900

22.19%

(6) Break Even Point Fixed Cost Rent Depreciation on Mchinery & Equipments Interest on Total Capital Investment @ 12% 40% of Salary and Wages 40% of Other Contingent Expenses (excluding Rent) Total Say B.E.P = Fixed Cost X 100 ______________ Fixed Cost + Annual Profit 12,44,200 X 100 __________________ 12,44,200 + 13,07,000 12,44,200 x 100 ______________ 2551200 12,44,200/12,44,200/1,20,000/1,33,500/7,06,548/1,54,560/1,29,600/-

48.76% Contd.10

(10) ADDRESSES OF MACHINERY AND EQUIMENTS SUPPLIERS 1. M/s Speedographics India Ltd, Indi. Area, Rajaji Nagar, Bangalore. 2. M/s J. Mahaveer and Co. Ltd., 3620-21, Netaji Subhash Marg, Daryaganj, New Delhi -110 002. 3. M/s Rajasthan Machine Tools, 1712 Darjion ka Chauraha, Khahjanewalon ka Rasta, Chandpole Bazar, Jaipur -1. 4. M/s Prateek Machinery Pvt. Ltd., V 18A, Prabhu Marg, Tilak Nagar, Jaipur. 5. M/s Sharpline Engg. Co., B-9/181- 1812, 1st Floor, Sector -5 Rohini, New Delhi 110 085.