PROJECT FOR RUBBER & INDUSTRIAL HOSES

PART I

PROJECT REPORT (GENERALVIEW) FOR

MANUFACTURING HIGH PRESSURE RUBBER HOSES.

Introduction: Made from Synthetic Rubber Tube & High Tensile wire braiding
R1, R2, is required.

Uses: Heavy Earth Movers i.e. Hydraulic lifting Machines, Cranes, Hydraulic
Presses, Tractor Trolley, JCB etc.

Capacity of Plant: Approx 2000Meters/day/8hrs Shift means at least

50,000Meters/Month

Land Required: 3000 square meter construction shed & at least 200square meter
open yard for Raw material, Boiler etc.

If we manufacture other similar products like LPG Hose, Water Hose, Air Hose
etc we need 15000Meters land.

PLANT & MACHINERY:

A Rubber Plant

S. Description Qty Unit Price Total Price

No.
1 Mixing Mills (14’ x 4 Nos. 10 Lakhs 40 Lakhs
36”)
2 Boiler (Gas Fired ) 2 Nos. 5 Lakhs 10 Lakhs
3 Extruder for 4 Nos. 2 Lakhs 8 Lakhs
Rubber Tube
(Different Sizes)
4 Kneader 2 Nos. 10 Lakhs 20 Lakhs
Total 78 Lakhs
B After making Rubber Tube we need following Machines for Wire Braiding
& Tape Wrapping.

S. Description Qty Unit Price Total Price

No.
1 Bobbin Winder 4 Nos. 2 Lakhs 8 Lakhs
2 24 Spindle 8 Nos. 10 Lakhs 80 Lakhs
Horizontal wire
Braider ( Double
Station)
3 36 Spindle 1 No. 15 Lakhs 15 Lakhs
Horizontal Wire
Braider ( Double
Station) for 1.5” dia
hose
4 Wrapping Machine 4 Nos. 2 Lakhs 8 Lakhs
for Tape Wrapping
5 Pay Off & Take Up 8 Nos. 4 Lakhs 32 Lakhs
Units with Drum
6 Pump for Mandel & 5 Lakhs
other Accessories
Total 148 Lakhs

C Crimping Machine for End Fitting 2 Nos. x 8 Lakhs – 16 Lakhs

D.G. Set Minimum 50 KW 2 Nos. x 7 Lakhs – 14 Lakhs

30 Lakhs

D Testing Laboratory - 3 Lakhs

Total Cost of Plant & M/C – A + B + C + D

78 + 148 + 30 + 3 = 259 Lakhs or 260 Lakhs (Say)
Working Capital for One Month:

Raw material required for 50,000 Meter tube per Month in different diameters

Rubber, Chemicals, Wire etc - 35 Lakhs

Labour, Power, Staff, Cartage- 8 Lakhs

43 Lakhs

Sale Price:
50,000 Meters x Rs. 110/- (per meter) = 55 Lakhs
(Average Cost Rs 100 to Rs 130 Meter)

Profit per Month – 55 Lakhs – 43 Lakhs = 12 Lakhs

Total Capital Required for Plant:

260 Lakhs + 43 Lakhs (ONE MONTH MATERIAL) = 303 LAKHS OR 300

Lakhs

Percent Profit:

12 x 100 = 4%
300

NOTE:
To Increase Production from 50,000 Meters to 1 Lakhs meters per month a night
shift is required , No expenses on Plant & Machines
 PART II
With Night Shift Working for One lakh Meter Per Month Production

Working Capital: 43 Lakhs x 2 = 86 Lakhs

Sale Price: 1, 00,000 Meters x Rs. 110/-(per meter) = 1, 10, 00,000/- or 110 Lakhs

Profit per Month:

110 Lakhs – 86 Lakhs = 24 Lakhs

Total Capital:

260 Lakhs (M/C) + 86 Lakhs (Raw Material) = 346 Lakhs

Percent Profit:

24 x 100 = 6.9 % or 7 %
346

Plant will come in Production within 6 months. Two months for running at brake
even. After 8 months Rs. 10 Lakhs per Month can be withdrawn from this
investment.
 PART III

At the same Pattern to Manufacture LPG SURAKSHA (Cooking Gas Tube) Unit
With 6000 Meters/day or 25days x 6000= 1.5Lakhs meter /month.

1 Plant & Machine Cost (Average) 150Lakhs

2 Working Capital for One Month 38 Lakhs

Including Labour , power etc.

3 Sale Price (Minimum) 1.5Lakh meter x Rs.35/- = 52,50,000/-

Or 52 Lakhs

Profit per month = 52lakhs – 38 lakhs = 14 Lakhs

If we need 2 months working capital in advance means we need 76 Lakhs

Then,
Total Capital Required = 150Lakhs + 76 Lakhs = 226 Lakhs

Percent Profit:

14 x 100 = 6.19% or 6 %
226
 PART IV

PRODUCTS : Welding Hose, Water Hose , Air Hose (Consumable Items

require after 6 month repeat Order)

Plant & Machinery - 200 lakhs

Working Capital 100 Lakhs

(ONE MONTH)

Working Capital 300 Lakhs

(THREE MONTH)

Total Working Capital for One Month :

Raw Material + Labour Power ETC- 100 Lakhs + 15 Lakhs = 115Lakhs

Sale of Plant/ Month - 150 Lakhs

Profit / Month : 150 Lakhs – 115 Lakhs = 35 Lakhs

But to stand in Market Credit will be given for Two Months + One Month On
Line Production Expenses needs:

100 Lakhs / Month x 3 = 300 Lakhs

Total Capital Blocked :

M/C + 3 Months working Capital = 200 + 300 = 500 Lakhs

Percent Profit:

35 x 100 = 7%
500
 FINAL REPORT
FOR MULTIPLE RUBBER PRODUCTS

PROJECT PRODUCTS NAME CAPITAL PERCENT

PROFIT
I HYDRAULIC HOSE 300 LAKHS 4%
II PART II 326 LAKHS 6%
III LPG HOSE 226 Lakhs 6%
IV Welding Hose , Air 500 Lakhs 7%
Hose ETC
1052LAKHS 5% (AVERAGE
PROFIT)

MEANS 10 CRORES – 5 % Per Month