PROJECT REPORT

Of

CEMENT PAINTS(PUTTY)

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Cement Paints(Putty).

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : [email protected]
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxxxxxxx
Mobile xxxxxxx

5 Product and By Product : CEMENT PAINTS(PUTTY)

6 Name of the project / business activity proposed : CEMENT PAINTS MAKING UNIT

7 Cost of Project : Rs.22.58 Lakhs

8 Means of Finance
Term Loan Rs.17.33 Lakhs
Own Capital Rs.2.25 Lakhs
Working capital Rs.3 Lakhs

9 Debt Service Coverage Ratio : 2.19

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 26%

13 Employment : 8 Persons

14 Power Requirement : 30.00 HP

15 Major Raw materials : White cement, Hydrated Lime, Water repellent,Silica Aggregate,Pigments & other chemicals

16 Estimated Annual Sales Turnover (Max Capacity) : 62.32 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Building /Shed 1000 Sq ft 5.00
Plant & Machinery 12.75
Furniture & Fixtures 1.50
Working Capital 3.33
Total 22.58

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.25

Working Capital(Finance) 3.00

Term Loan 17.33

Total 22.58
 CEMEN
NT PAINTS

Introd
duction: Cement paints
p are covered under
u Pow
wder Paintts which are
a
used fo
or exteriorr cementedd walls, alll types of masonry
m s
surfaces like
Bungaloows, Multtistoried buildings, Bridges,
B Dams, Housses, Buildiings of
General Public, etc. and cann also be used
u for In
nterior as well as exxterior
masonrry cementted surfacees. A wide range of colours
c nd shades in cementt
an
paints have
h beenn developeed and man nufactured to meet various ch hoices,
moods,, service coonditions,, and methhods of application, performance and
econommic requireements. Ceement paiints are wiidely used d by generral public and
a
Governnment Dep partments,, and estab blishmentts.

Appliccations & uses: Uses

U & app
plications are mentiioned belo
ow:

 Cemeent paint gives

g very
y good prootection to
o all kinds of mason
nry surfacees from
Ultraaviolet ray
ys present in sunray
ys.
 It gives very good protection from severe climatic conditions like rain, heat,
water, humidity, salt atmosphere near sea-shores, to all types of cemented
walls, surfaces.
 It prevents growth of fungus and bacteria on masonry surfaces.
 It gives very good colour and pleasing appearance to all types of masonry
surfaces.
 Cements paint hides out various surface irregularities, hair lining, roughness
etc. thereby giving smooth and pleasing appearance to all cemented masonry
surfaces where it is applied. Cement paints normally give smooth and matt
finish.

Market Potential: Since the cement paints gives high order of protection,
decoration, beautification and durable properties than the normal whitewash. It
is extensively used on all types of emented masonry surrfaces like Bungalows,
multi-storied building, bridges, dams, general public buildings, houses etc. The
demand of cement paint is increasing with the general requirement of human
beings throughout the country. Cement Paints have a very good market and a
very promising future. There is a substantial demand for Cement Paints from
Government sectors like DGS and D, State PWDs, CPWD, Railways, Defence, State
Electricity Boards, Govt. of India Enterprises, State Govt. Enterprises, various
contractors, architects and engineers.

Raw material: Major raw materials are as follows:

1. White Cement
2. Hydrated Lime
3. Water repellent
4. Silica Aggregate
5. Pigments & other chemicals (Zinc sulphate, calcium carbonate, etc.)
6. Packing material (Bags of 5kg, 10kg ,20kg, etc..)
 Machines & equipment: Major machines & equipments are:

Name Qty. Price

Mild Steel Ball Mill size, 30" ×36" with 5 H.P. Flame 1 600000
proof motor and other accessories

Mild Steel ball Mill size 26" ×30" with 3 H.P. flame 1 50000
proof motor and other accessories

Edge runner (Bucket, sizes 48") with reduction gear 2 250000

and other accessories

Weighing balance platform type 200 kg. Capacity 1 60000

Testing Laboratory equipments and chemical 1 40000

testing tables etc.

Counter scale balance capacity upto 10 kg. with 1 50000

weight

Fire extinguisher 2 50000

Dry Powder mixer 1 80000

Miscellaneous hand tools, fittings and auxiliary LS 95000
equipments

Manufacturing Process: Cement paints are composed of the following

ingredients
 Pigments
 Binder
 Additives and
 Solvents—water, which is added before application. The pigment portion
consists of prime pigments like Titanium Di Oxide, Carbon Black, Phthalocyanine
blue, Phthalocyanine Green, Red Oxide etc. with suitable quantity of extenders
like whiting, china clay etc. The binder is the white cement or ordinary Portland
cement-33 grade which acts as a film former or pigment binder. Here water is
used as solvent which is generally, added before application of cement paint to
the masonry surface. Water is to be added in cement paint to bring it to the
desired consistency. Additives like wetting and dispersing agents, anti fungicidal
agents etc. are added in small percentage to impart specific properties to the
cementpaint.

In the manufacturing of Cement Paints Ball Mills and Edge Runner are used. All
the pigments/extenders and some portion of binder (e.g. White cement,
Ordinary Portland cement-33 grade etc.) with dispersing agents as per
formulation are charged in the Ball Mills and run till the desired
grinding/dispersion is achieved. The ground material is taken out with the help
of the rest portion of binder to the Edge Runner machine. Again it is grinded and
mixed uniformly. Anti-fungicides and other required additives as per
formulation are added here. Then shade matching is done in comparison with
the colour card of manufacturer or as per the requirements of customers. Then
quality control testing is done to achieve the required properties. After quality
control testing is O.K. It is packed into bags.

Area:

The industrial setup requires space for Inventory, workshop or manufacturing

area, space for power supply utilities and auxiliary like Generator setup. Also
some of the area of building is required for office staff facilities,
documentation, office furniture, etc. Thus, the approximate total area required
for complete industrial setup is 1000 to 1400Sqft. Civil work will cost around
5 Lac (approx.)

Power Requirement –The power consumption required to run all the

machinery could be approximated as 30 hp.
Manpower Requirement– There are requirement of skilled machine
operators to run the machine set. Experience quality engineers are required
for desired quality control. Some helpers are also required to transfer the
material from one work station to other. Office staffs are required to maintain
the documentation. The approximate manpower required is 8 including 1
Supervisor, 1 Plant operator, 1 unskilled worker, 1 Helper and 1 security
Guard. 3 Skilled worker including Accountant, Manager and sales personal
each.

Approvals & Registration Requirement:

Basic registration required in this project:

 GST Registration
 Udyog Aadhar Registration (Optional)
 Choice of a Brand Name of the product and secure the name with
Trademark if require

Bank Term Loan: Rate of Interest is assumed to be at 11%

Depreciation: Depreciation has been calculated as per the Provisions of

Income Tax Act, 1961
Implementation Schedule:
S No. Activity Time required
1. Acquisition of premises 1-2 Months
2. Procurement & installation of Plant & Machinery 1-2 Months
3. Arrangement of Finance 1.5-2 Months
4. Requirement of required Manpower 1 Month
5. Commercial Trial Runs 1 Month
Total time Required (some activities shall run 5-6 Months
concurrently)

FINANCIALS
PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.25 -

Reserve & Surplus 4.37 6.28 8.58 11.20 14.36
Depriciation & Exp. W/off 2.56 2.21 1.91 1.65 1.42
Increase In Cash Credit 3.00
Increase In Term Loan 17.33 - - - -
Increase in Creditors 0.32 0.05 0.04 0.04 0.04

TOTAL : 29.82 8.54 10.53 12.88 15.82

APPLICATION OF FUND

Increase in Fixed Assets 19.25 - - - -

Increase in Stock 0.71 0.13 0.12 0.13 0.14
Increase in Debtors 3.40 0.67 0.67 0.72 0.77
Repayment of Term Loan 1.93 3.85 3.85 3.85 3.85
Taxation - 1.57 2.15 2.80 3.59
Drawings 2.00 2.20 3.00 5.00 7.00
TOTAL : 27.29 8.42 9.79 12.50 15.34

Opening Cash & Bank Balance - 2.54 2.66 3.39 3.77

Add : Surplus 2.54 0.12 0.74 0.38 0.48

Closing Cash & Bank Balance 2.54 2.66 3.39 3.77 4.25
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 4.62 7.13 10.57 13.96
Add: Additions 2.25 - - - -
Add: Net Profit 4.37 4.71 6.44 8.40 10.77
Less: Drawings 2.00 2.20 3.00 5.00 7.00
Closing Balance 4.62 7.13 10.57 13.96 17.73
CC Limit 3.00 3.00 3.00 3.00 3.00
Term Loan 15.40 11.55 7.70 3.85 - 0.00
Sundry Creditors 0.32 0.37 0.40 0.44 0.48

TOTAL : 23.34 22.05 21.67 21.25 21.20

APPLICATION OF FUND

Fixed Assets ( Gross) 19.25 19.25 19.25 19.25 19.25

Gross Dep. 2.56 4.77 6.68 8.33 9.75
Net Fixed Assets 16.69 14.48 12.57 10.92 9.50

Current Assets
Sundry Debtors 3.40 4.07 4.74 5.46 6.23
Stock in Hand 0.71 0.84 0.96 1.09 1.23
Cash and Bank 2.54 2.66 3.39 3.77 4.25

23.34 22.05 21.67 21.25 21.20

TOTAL :

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 33.98 40.73 47.45 54.64 62.32

Total (A) 33.98 40.73 47.45 54.64 62.32

B) COST OF SALES

Raw Material Consumed 13.51 15.76 17.34 18.92 20.49

Elecricity Expenses 2.05 2.28 2.51 2.74 2.97
Repair & Maintenance 1.36 2.85 4.27 5.46 6.23
Labour & Wages 4.79 5.31 6.11 7.03 8.01
Depreciation 2.56 2.21 1.91 1.65 1.42

Cost of Production 24.28 28.42 32.14 35.80 39.13

Add: Opening Stock /WIP - 0.49 0.58 0.67 0.78

Less: Closing Stock /WIP 0.49 0.58 0.67 0.78 0.88

Cost of Sales (B) 23.79 28.33 32.05 35.70 39.02

C) GROSS PROFIT (A-B) 10.20 12.40 15.40 18.95 23.30

30.01% 30.44% 32.46% 34.68% 37.39%
D) Bank Interest (Term Loan ) 1.88 1.54 1.11 0.69 0.26
ii) Interest On Working Capital 0.33 0.33 0.33 0.33 0.33
E) Salary to Staff 3.28 3.44 3.96 4.55 5.23
F) Selling & Adm Expenses Exp. 0.34 0.81 1.42 2.19 3.12

TOTAL (D+E) 5.83 6.12 6.82 7.75 8.94

H) NET PROFIT 4.37 6.28 8.58 11.20 14.36

12.9% 15.4% 18.1% 20.5% 23.0%
I) Taxation 1.57 2.15 2.80 3.59

J) PROFIT (After Tax) 4.37 4.71 6.44 8.40 10.77

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

I 45% 13.51
II 50% 15.76 5% Increase in Cost
III 55% 17.34 5% Increase in Cost
IV 60% 18.92 5% Increase in Cost
V 65% 20.49 5% Increase in Cost
COMPUTATION OF SALE
Particulars I II III IV V

Op Stock - 1,800.00 2,000.00 2,200.00 2,400.00

Production 1,08,000.00 1,20,000.00 1,32,000.00 1,44,000.00 1,56,000.00

1,08,000.00 1,21,800.00 1,34,000.00 1,46,200.00 1,58,400.00

Less : Closing Stock(5 Days) 1,800.00 2,000.00 2,200.00 2,400.00 2,600.00

Net Sale 1,06,200.00 1,19,800.00 1,31,800.00 1,43,800.00 1,55,800.00

Sale Price per kg 32.00 34.00 36.00 38.00 40.00

Sale (in Lacs) 33.98 40.73 47.45 54.64 62.32

COMPUTATION OF MAKING OF CEMENT PAINT(PUTTY)

Item to be Manufactured Cement Piants(Putty

Manufacturing Capacity per day 800 kg

No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum 2,40,000 kg

Total Production per Annum 2,40,000 kg

Year Capacity CEMENT PAINTS

Utilisation

I 45% 1,08,000.00
II 50% 1,20,000.00
III 55% 1,32,000.00
IV 60% 1,44,000.00
V 65% 1,56,000.00

COMPUTATION OF RAW MATERIAL

Quantity of Raw Total CostPer Annum
Unit Unit Rate of
Item Name Material (100%)
White Cement 1,35,000.00 kg 14.00 18,90,000.00
Hydrated Lime 68,000.00 kg 5.00 3,40,000.00
Water repellent 7,500.00 kg 35.00 2,62,500.00
Silica Aggregate 70,000.00 kg 4.00 2,80,000.00
Pigments & other chemicals 1,50,000.00
Packing material 80,000.00
Total 30,02,500.00
Total Raw material in Rs lacs 30.03
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(5 Days requirement) 0.49 0.58 0.67 0.78 0.88
Raw Material
(5 Days requirement) 0.23 0.26 0.29 0.32 0.34

Closing Stock 0.71 0.84 0.96 1.09 1.23

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 0.71
Less:
Sundry Creditors 0.32
Paid Stock 0.40 0.04 0.36

Sundry Debtors 3.40 0.34 3.06

Working Capital Requirement 3.42

Margin 0.38

MPBF 3.42
Working Capital Demand 3.00
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Supervisor 12,000.00 1 12,000.00
Plant Operator 10,000.00 1 10,000.00
Unskilled Worker 6,000.00 1 6,000.00
Helper 4,000.00 1 4,000.00
Security Guard 6,000.00 1 6,000.00

38,000.00
Add: 5% Fringe Benefit 1,900.00
Total Labour Cost Per Month 39,900.00
Total Labour Cost for the year ( In Rs. Lakhs) 5 4.79

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager 10,000.00 1 12,000.00
Accountant cum store keeper 8,000.00 1 8,000.00
Sales 6,000.00 1 6,000.00
Total Salary Per Month 26,000.00

Add: 5% Fringe Benefit 1,300.00

Total Salary for the month 27,300.00

Total Salary for the year ( In Rs. Lakhs) 3 3.28

COMPUTATION OF DEPRECIATION

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - -
Addition - 5.00 12.75 1.50 19.25
- 5.00 12.75 1.50 19.25
- - -
TOTAL 5.00 12.75 1.50 19.25
Less : Depreciation - 0.50 1.91 0.15 2.56
WDV at end of Ist year - 4.50 10.84 1.35 16.69
Additions During The Year - - - - -
- 4.50 10.84 1.35 16.69
Less : Depreciation - 0.45 1.63 0.14 2.21

WDV at end of IInd Year - 4.05 9.21 1.22 14.48

Additions During The Year - - - - -
- 4.05 9.21 1.22 14.48
Less : Depreciation - 0.41 1.38 0.12 1.91
WDV at end of IIIrd year - 3.65 7.83 1.09 12.57
Additions During The Year - - - - -
- 3.65 7.83 1.09 12.57
Less : Depreciation - 0.36 1.17 0.11 1.65
WDV at end of IV year - 3.28 6.66 0.98 10.92
Additions During The Year - - - - -
- 3.28 6.66 0.98 10.92
Less : Depreciation - 0.33 1.00 0.10 1.42
WDV at end of Vth year - 2.95 5.66 0.89 9.50
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter 17.33 - 17.33 0.48 - 17.33
Iind Quarter 17.33 - 17.33 0.48 - 17.33
IIIrd Quarter 17.33 - 17.33 0.48 0.96 16.37
Ivth Quarter 16.37 - 16.37 0.45 0.96 15.40
1.88 1.93
II Opening Balance
Ist Quarter 15.40 - 15.40 0.42 0.96 14.44
Iind Quarter 14.44 - 14.44 0.40 0.96 13.48
IIIrd Quarter 13.48 - 13.48 0.37 0.96 12.52
Ivth Quarter 12.52 12.52 0.34 0.96 11.55
1.54 3.85
III Opening Balance
Ist Quarter 11.55 - 11.55 0.32 0.96 10.59

Iind Quarter 10.59 - 10.59 0.29 0.96 9.63

IIIrd Quarter 9.63 - 9.63 0.26 0.96 8.67
Ivth Quarter 8.67 8.67 0.24 0.96 7.70
1.11 3.85
IV Opening Balance
Ist Quarter 7.70 - 7.70 0.21 0.96 6.74
Iind Quarter 6.74 - 6.74 0.19 0.96 5.78
IIIrd Quarter 5.78 - 5.78 0.16 0.96 4.81
Ivth Quarter 4.81 4.81 0.13 0.96 3.85
0.69 3.85
V Opening Balance
Ist Quarter 3.85 - 3.85 0.11 0.96 2.89
Iind Quarter 2.89 - 2.89 0.08 0.96 1.93
IIIrd Quarter 1.93 - 1.93 0.05 0.96 0.96

Ivth Quarter 0.96 0.96 0.03 0.96 0.00

0.26 3.85

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R

PARTICULARS I II III IV V

CASH ACCRUALS 6.93 6.92 8.34 10.05 12.19

Interest on Term Loan 1.88 1.54 1.11 0.69 0.26

Total 8.81 8.45 9.46 10.73 12.46

REPAYMENT
Repayment of Term Loan 1.93 3.85 3.85 3.85 3.85
Interest on Term Loan 1.88 1.54 1.11 0.69 0.26

Total 3.81 5.39 4.96 4.54 4.12

DEBT SERVICE COVERAGE RATIO 2.32 1.57 1.91 2.36 3.03

AVERAGE D.S.C.R. 2.19

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 30
Load Factor 0.7460
Electricity Charges per unit 7.50
Total Working Days 300
Electricity Charges 4,02,840.00

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
No of Working Hours 0.3 Hour per day
Total no of Hour 90
Diesel Consumption per Hour 8
Total Consumption of Diesel 720
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 0.47
Add : Lube Cost @15% 0.07

Total 0.54

Total cost of Power & Fuel at 100% 4.57

Year Capacity Amount

(in Lacs)

I 45% 2.05
II 50% 2.28
III 55% 2.51
IV 60% 2.74
V 65% 2.97
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
reflect the views of the industry which are drawn from various research material
sources from internet, experts, suppliers and various other sources. The actual
cost of the project or industry will have to be taken on case to case basis
considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is
intended for general guidance only and must not be considered a substitute for a
competent legal advice provided by a licensed industry professional. SAMADHAN
hereby disclaims any and all liability to any party for any direct, indirect, implied,
punitive, special, incidental or other consequential damages arising directly or
indirectly from any use of the Project Report Content, which is provided as is, and
without warranties.