PROJECT REPORT

Of

SCRUBBER(UTENSILS)

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Scrubber(Utensils) Manufacturing unit.

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 : xxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxx
Mobile xxxxxxx

5 Product and By Product : SCRUBBER(UTENSILS)

6 Name of the project / business activity proposed : SCRUBBER(UTENSILS) MANUFACTURING UNIT

7 Cost of Project : Rs.12.31 Lakhs

8 Means of Finance
Term Loan Rs.7.74 Lakhs
Own Capital Rs.1.23 Lakhs
Working Capital Rs.3.34 Lakhs

9 Debt Service Coverage Ratio : 2.90

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 40%

13 Employment : 9 Persons

14 Power Requirement : 10.00 HP

Matt Finish stainless steel, Blister Packaging and

15 Major Raw materials
: Blister Cups

16 Estimated Annual Sales Turnover (Max Capacity) : 70.56 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 8.10
Furniture & Fixtures 0.50
Working Capital 3.71
Total 12.31

MEANS OF FINANCE
Particulars Amount
Own Contribution 1.23
Working Capital(Finance) 3.34
Term Loan 7.74
Total 12.31
SCRUBBER (UTENSILS) MANUFACTURING UNIT

Introduction:

Introduction of Stainless Steel Pot Scrubber have revolutionized the way household
utensils, vessels, sinks, pans, kitchen files are cleaned. The “Easy to Use” quality with
any cleaning solution and sanitary storing ability makes it the popular it the popular
choice for kitchen cleaning applications

Scrubbers, which find wide application in for cleaning household cookware pots, pans
and dishes and light painting. It also is a good helper to clean the stove, sink and hoods
in the kitchen.
Steel scrubbers are harsh enough to remove the dirt or other sticky things from the steel
cook ware but at the same time these are equally soft to the skin and don’t cause cut
even when touched with naked skin. Moreover, these also possess the salient feature
of controlling stretch or abrasion on the body of the cook ware. Moreover, though these
Scrubbers are often used in contact with water and detergent, yet these are resistant to
corrosion. There are four kinds of scrubbers, namely stainless steel scrubbers,
galvanized steel scrubbers, copper scrubbers and brass scrubbers.
Uses & Market Potential:

Scrubbers are widely applied to homes, hotels and restaurants for cleaning the dishes,
stoves and cooking utensils. They are also used in industries and constructions for
removing the dirty and oily parts of metal, porcelain, marble and glass items. In the rapid
use of scrubbers as an abrasive enjoys constant demand and good market potential in the
country. Being a consumable item, it has great demand in commercial establishments,
houses, automobile repairing shops etc. It has great market potential.

Stainless steel scrubbers can clean the pots and other kitchenware clearly without
scratches, it can also clean the dirty and oily surface of dishes without detergent. They are
also used in industries and constructions for removing the dirty and oily parts of metal,
porcelain, marble and glass items.

In the rapid industrialization the use of steel wool as an abrasive enjoys constant demand
and good market potential in the country. Being a consumable item, it has great demand
in commercial establishments, houses, automobile repairing shops etc. There are very few
manufacturers of this item; as such it has great market potential.

Product:
Scrubber (Utensils)

Raw Material:
Basic raw material is Matt finish stainless steel, Blister Packaging and Blister cups.
Manufacturing Process:

Stainless Scrubber fed Cup is kept in

steel wire to plastic cup
Scrubber
sheet

Inspection
and
Despatch machine

Area:

The industrial setup requires space for Inventory, workshop or manufacturing area, space
for power supply utilities and polishing area. Also, some of the area of building is required
for office staff facilities, office furniture, etc. Thus, the approximate total area required
for complete industrial setup is 1200-1800Sqft.

Cost of Machines:
Machine Unit Rate Price
Scrubber making machine 1 650000 650000
Scrubber Packaging machine 1 120000 120000
Other tools - 40000 40000
Total Amount 810000
Power Requirement- The estimated Power requirement is taken at 10 HP.

Manpower Requirement– Following manpower is required:

 Machine operator-1
 Skilled/unskilled worker-2
 Helper-4
 Manager cum Accountant-1
 Sales Personnel-1

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 1.70 2.47 3.64 5.11
Add: Additions 1.23 - - - -
Add: Net Profit 2.97 3.77 4.47 5.26 5.95
Less: Drawings 2.50 3.00 3.30 3.80 4.50
Closing Balance 1.70 2.47 3.64 5.11 6.56
CC Limit 3.34 3.34 3.34 3.34 3.34
Term Loan 6.88 5.16 3.44 1.72 -
Sundry Creditors 1.13 1.26 1.40 1.55 1.70

TOTAL : 13.05 12.24 11.83 11.72 11.60

APPLICATION OF FUND

Fixed Assets ( Gross) 8.60 8.60 8.60 8.60 8.60

Gross Dep. 1.27 2.34 3.26 4.04 4.71
Net Fixed Assets 7.34 6.26 5.34 4.56 3.89

Current Assets
Sundry Debtors 2.00 2.37 2.66 2.97 3.29
Stock in Hand 2.84 3.20 3.57 3.93 4.32
Cash and Bank 0.88 0.41 0.27 0.26 0.10

TOTAL : 13.05 12.24 11.83 11.72 11.60

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 42.75 50.75 57.00 63.64 70.56

Total (A) 42.75 50.75 57.00 63.64 70.56

B) COST OF SALES

Raw Material Consumed 22.50 25.25 28.08 31.01 34.02

Elecricity Expenses 1.12 1.23 1.34 1.45 1.57
Repair & Maintenance 1.07 1.27 1.43 1.59 1.76
Labour & Wages 8.44 9.96 11.46 12.83 14.37
Depreciation 1.27 1.08 0.92 0.78 0.67
Cost of Production 34.39 38.78 43.22 47.66 52.39

Add: Opening Stock /WIP - 1.72 1.94 2.16 2.38

Less: Closing Stock /WIP 1.72 1.94 2.16 2.38 2.62

Cost of Sales (B) 32.68 38.56 43.00 47.44 52.15

C) GROSS PROFIT (A-B) 10.07 12.19 14.00 16.19 18.41

23.57% 24.02% 24.56% 25.45% 26.09%
D) Bank Interest i) (Term Loan ) 0.84 0.69 0.50 0.31 0.12
ii) Interest On Working Capital 0.37 0.37 0.37 0.37 0.37
E) Salary to Staff 5.04 5.95 6.84 7.80 8.73
F) Selling & Adm Expenses Exp. 0.86 1.42 1.82 2.23 2.82

G) TOTAL (D+E+F) 7.10 8.42 9.53 10.70 12.04

H) NET PROFIT 2.97 3.77 4.47 5.50 6.37

7.0% 7.4% 7.8% 8.6% 9.0%
I) Taxation - - - 0.23 0.41

J) PROFIT (After Tax) 2.97 3.77 4.47 5.26 5.95

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 1.23 - - - -

Reserve & Surplus 2.97 3.77 4.47 5.50 6.37
Depriciation & Exp. W/off 1.27 1.08 0.92 0.78 0.67
Increase In Cash Credit 3.34 - - - -
Increase In Term Loan 7.74 - - - -
Increase in Creditors 1.13 0.14 0.14 0.15 0.15

TOTAL : 17.68 4.98 5.53 6.42 7.18

APPLICATION OF FUND

Increase in Fixed Assets 8.60 - - - -

Increase in Stock 2.84 0.36 0.36 0.37 0.39
Increase in Debtors 2.00 0.37 0.29 0.31 0.32
Repayment of Term Loan 0.86 1.72 1.72 1.72 1.72
Taxation - - - 0.23 0.41
Drawings 2.50 3.00 3.30 3.80 4.50
TOTAL : 16.80 5.45 5.68 6.43 7.34

Opening Cash & Bank Balance - 0.88 0.41 0.27 0.26

Add : Surplus 0.88 - 0.47 - 0.14 - 0.01 - 0.16

Closing Cash & Bank Balance 0.88 0.41 0.27 0.26 0.10
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 1.72 1.94 2.16 2.38 2.62
Raw Material
(15 Days requirement) 1.13 1.26 1.40 1.55 1.70

Closing Stock 2.84 3.20 3.57 3.93 4.32

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 2.84
Less:
Sundry Creditors 1.13
Paid Stock 1.72 0.17 1.55

Sundry Debtors 2.00 0.20 1.80

Working Capital Requirement 3.34

Margin 0.37

MPBF 3.34
Working Capital Demand 3.34
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 7.74 7.74 0.21 - 7.74
Iind Quarter 7.74 - 7.74 0.21 - 7.74
IIIrd Quarter 7.74 - 7.74 0.21 0.43 7.31
Ivth Quarter 7.31 - 7.31 0.20 0.43 6.88
0.84 0.86
II Opening Balance
Ist Quarter 6.88 - 6.88 0.19 0.43 6.45
Iind Quarter 6.45 - 6.45 0.18 0.43 6.02
IIIrd Quarter 6.02 - 6.02 0.17 0.43 5.59
Ivth Quarter 5.59 5.59 0.15 0.43 5.16
0.69 1.72
III Opening Balance
Ist Quarter 5.16 - 5.16 0.14 0.43 4.73
Iind Quarter 4.73 - 4.73 0.13 0.43 4.30
IIIrd Quarter 4.30 - 4.30 0.12 0.43 3.87
Ivth Quarter 3.87 3.87 0.11 0.43 3.44
0.50 1.72
IV Opening Balance
Ist Quarter 3.44 - 3.44 0.09 0.43 3.01
Iind Quarter 3.01 - 3.01 0.08 0.43 2.58
IIIrd Quarter 2.58 - 2.58 0.07 0.43 2.15
Ivth Quarter 2.15 2.15 0.06 0.43 1.72
0.31 1.72
V Opening Balance
Ist Quarter 1.72 - 1.72 0.05 0.43 1.29
Iind Quarter 1.29 - 1.29 0.04 0.43 0.86
IIIrd Quarter 0.86 - 0.86 0.02 0.43 0.43
Ivth Quarter 0.43 0.43 0.01 0.43 0.00
0.12 1.72

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 4.24 4.84 5.39 6.04 6.62

Interest on Term Loan 0.84 0.69 0.50 0.31 0.12

Total 5.08 5.53 5.89 6.35 6.74

REPAYMENT
Repayment of Term Loan 0.86 1.72 1.72 1.72 1.72
Interest on Term Loan 0.84 0.69 0.50 0.31 0.12

Total 1.70 2.41 2.22 2.03 1.84

DEBT SERVICE COVERAGE RATIO 2.99 2.30 2.66 3.13 3.67

AVERAGE D.S.C.R. 2.90

Assumptions:
1. Production Capacity of Scrubber(Utensils) manufacturing unit is taken at 6000
pcs per day. First year, Capacity has been taken @ 50%.

2. Working shift of 10 hours per day has been considered.

3. Raw Material stock and Finished goods closing stock has been taken for 15
days.

4. Credit period to Sundry Debtors has been given for 14 days.

5. Credit period by the Sundry Creditors has been provided for 15 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 10 HP.

10. Selling Prices & Raw material costing has been increased by 3% & 2%
respectively in the subsequent years.
 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
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reflect the views of the industry which are drawn from various research material
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considering specific requirement of the project, capacity and type of plant and
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