PROJECT PROFILE ON TISSUE PAPER

Sl No Description
1 Product Tissue Papers
(Conversion)
2 Quality Standards
ISISO 12625-1:2019(en) 12625-1:

Tissue paper and tissue products

3 Production Capacity 42 Mt

4 Value Rs.41,16,000

5 Prepared by Branch MSME- Development

Institute, ITANAGAR
Arunachal Pradesh
 PROJECT PROFILE ON TISSUE PAPER

1. Introduction

Tissue paper is a lightweight paper or, light crepe paper. Tissue can be made
both from virgin and recycled paper pulp. Key properties are strength,
absorbency, basis weight, thickness, brightness, stretch, appearance and
comfort.

1.1 Types of Tissue papers

Toilet paper, Wipes, Kitchen towels, Handkerchiefs, Facial tissue, House hold
towels, Napkins.

Tissue papers are made of- one or several plies, each ply of one or several
layers, manufactured as sheets or rolls, folded or unfolded, embossed or un
embossed with or without lamination, printed or unprinted.

1.3. Raw Material specification:

Sl no Products Specification

1 Facial tissue 12.5 to 13 & 14 GSM

2 Toilet Tissue 14 to 22 GSM

3 Napkin 15 to 24 GSM

4 Towel Grade 19 to 42 GSM

2.1. Manufacturing Method

Tissue paper are manufactured by using automatic conversion machine. Paper

rolls are obtained from the paper mill feed into the machine to get required
sizes .The Standard sizes are 9X9, 11X11and 12X12.And one machine only
one sizes may be possible to manufacture/convert. And online printing also be
done by using flexo printing device
2.2. Flow chart for the Manufacture of Tissue Paper

Raw material slitting

Printing

Embossing,

Folding,

Counting

Packing
3. ENERGY CONSERVATION:

General precautions for saving electricity are followed by the unit by

providing energy meter. These products are low energy consumption. Thus
considerable energy could be saved during manufacturing activities.
4. Electrical HP Details:
Sl Name of the Machine No: of H.P
No m/s Connected
1 Automatic Tissue paper making Machine 1 5
Total H.P Connected 5

5. BASIS AND PRESUMPTION OF THE PROJECT:

i. The process of manufacture is on the basis of Double shift

eight hours per shift with three hundred working days in a
year.
ii. To achieve full plant capacity it requires three month trial
production
iii. Labor and wages mentioned in profile are as per prevailing
local rates.
iv. Interest rate at 12.5% considered in the project

v. However the rate of interest may be varying while

implementing project.
vi. The Promoter contribution will be 5% of the total project
cost applicable under the PMEGP Schemes. (Special
category)

6. FIXED CAPITAL:

(a) Land & Building: Own/ Rented :1000Sq.ft

(b)Machinery and Equipment:

S.no Descriptions Nos Value
(Rs)
1 Automatic Tissue Paper converting machine : 1 6,10,000
2 Weighing machine : 1 12,000

6,22,000
1,11,960
Total 7,33,960
Total plant & machineries’ Rs. 7,33,960

Total fixed cost: Rs; 7, 33,960

7. Recurring expenditure (Per Month):

7.1. Raw Material per Month: Rs.

S.n Description Qty Rate Amount

1 Tissue Paper Roll including 3.50 MT 60,000 2,10,000

GST @ 18 %
2 Packing materials:
a)Corrugated boxes 150 Nos 60 9,000
b) P.P. Covers 50,000 Nos 0.20 10,000
Total 2,29,000
7.2. Salaries & Wages Per Month: Rs.

S.no Designation No Salary Amount

1 Production Manager 1 15,000 15,000
2 Skilled worker 1 10,000 10,000
3 Un skilled workers 1 7,500 7,500
Total 4 32,500

7.3. Utilities per Month: Rs.

S.n Description Amount

1 Power 5HP 2,238 Units@ Rs.6.80 per Unit 15,218

Total 15,218
7.4. Other Expenses Per Month: Rs.

S.n Description Amount

1 Rent 10,000
1 Postage and stationery 1,000
2 Repairs and maintenance 2,000
3 Traveling and transportation 10,000
4 Insurance 500
Total 23,500

7.5 RECURRING EXPENDITURE PER MONTH:

a + b + c + d = Rs: 3,00,218/-

Recurring expenditure per year: Rs.36,02,616

7.6. Working Capital Assessment Rs

S.n Description Amount

1 Raw Material 1,14,500

(Required for two weeks)

2 Work in progress 47,480

(Required for one month)

3 Finished Goods 42,850

(Required for one week

4 Sundry debtor (Required for two weeks ) 62,210

Total 2,66,040
8. Other financial assistance Rs.

8.1 Total Project Cost

b. Plant & Machinery 7,33,960

c. Working capital 2, 66,040

Total 10,00,000

8.2 Means of Finance

Total Project cost 10,00,000

Promoter contribution 5 %(-) 50,000

Total 9,50,000

8.3. Cost of Production Per Annum : Rs.

S.n Description Amount

1 Total recurring cost 36,02,616
2 Interest on total investment @12..5 % 1,25,000
3 Total Depreciation on Machinery @5 % 36,698
TOTAL 37,64,314

8.4. Turnover Per Annum: Total production 42 MT

One Month Production: 3.5 MT: One year production: 42 MT

One MT: 14,000 pocks of 100 pcs
And total 5.88 pockets Selling @Rs. 7.40 / per pockets
Total Selling value: Rs.43,51,200/.

8.5. Profit Per Annum :

Turnover - Cost of Production

43,51,200 - 37,64,314

= 5,86,886
8.6 Percentage of profit on sales = Profit/annum X 100
Turnover

= 5,86,886 X 100
43,51,200

= 13.48%

8.7 Rate of Return = Profit/annum X 100

Total Capital investment

= 5,85,686 X 100
10,00,000
= 58.68 %

8.8. Break Even Analysis

(1)Fixed Expenditure per annum : Rs

a Total Deprecation 36,698

b Interest on Investment 1,25,000
c Insurance 2,400
d 40%of Salary 1,56,000
e 40% of other Expenditure and Utilities 1,83,446
excluding Insurance
Total 5,03,544

2.Profit per annum = 5,86,886

3.Break even Point:

Fixed Exp /annum X 100

-------------------------------------------
Fixed Exp /annum + Profit /per annum

1,83,985X100
10,90,430 = 53.82.%
9. Raw materials Suppliers

Sl No Name and Address

1 M/s. Tamilnadu News Print and Paper Ltd

Kagithapuram,
Karur Dt: 639136
2 M/s. The West Coast PaperMill
23/1, Kanakasri Nagar,Catedral Road, Teynampet-
Chennai- 600086
3 M/s. Amaravathi Sri Venkatesa Ppaer Mills Ltd
Palani Road, Swaminathapuram
Udumalaipet
Tripur Dt: 624113

10 Plant and Machinery Suppliers

Sl No Name and Address

1 M/s. Bharath Machine

No.688, Sangam Marble Compound
SIDCO Industrial Estate , Puddukottalmi
Tamilnadu: 622004
2 M/s Upliftoo Green Caaar Products
No: : 212/3 ,Gerugambakkam,
Chennai 600122
3 M/s. Universal Machine
No. 6, DSIDC Complex, Okhla Industrial Area
Phase 1, New Delhi-110020, Delhi, India
4
M/s. Hi-Tech Machinery
Site 2/187, Vikaspuri, Near Main Market,
Delhi-110018, India