NSIC

Project Profiles

BROOMS MAKING
1. INTRODUCTION
Brooms are used for floor cleaning, dust removing etc. Brooms are generally grown in
forest areas. On harvesting, they are cut into required size on a cutter and made
them a suitable bundle using plastic packing machine. Hill broom making is a
livelihood for large number of tribals.

2. MARKET
Brooms is a common household item. It is transported to various districts for
marketing. It has good demand and marketed through Super Bazars, Kirana Shops
and other outlets. Economics are worked out based on average costs and these may
vary moderately from location to location and required to be modified.

3. MANUFACTURING PROCESS
The process is simple. On harvesting, they are cut into required size on a cutter and
made them a suitable bundle using plastic packing machine. Collection of Hills
brooms, and make them slicing, grading and packing will be done simultaneously.

4. PRODUCTION CAPACITY PER ANNUM

Capacity
Selling Price

Rs.

35000 Nos.
10 No.

5. PROJECT COST/CAPITAL INVESTMENT

S.No

1
2
3

Description

Preliminary & Preoperative Expns

Fixed Capital
Working Capital for
Total Project Cost

Amount Rs.

5000
30000
26250
61250

month(s)

6. MEANS OF FINANCE
S.No

1
2
3

Description

Promoter Contribution
Subsidy
Term Loan
Total

%age

Amount Rs.

15%
20%
65%

9187.5
12250
39813
61250

NSIC

Project Profiles

7. FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land and Buildings

Rented

750 per month

ii. Machinery and Equipment

S.No

Description

Qty.

Broom Cutter,
Packing Machine

1
1

Rate

Amount Rs.

20000
10000

3
4
5
6
7

Total

20000
10000
0
0
0
0
0
0
0
30000

B. WORKING CAPITAL
i. Salaries & Wages (per month)
S.No

1
2
3
4
5

Description

Nos.

Supervisor/Entrepreneur
Skilled Workers

1
2

Sal/mon. Amount Rs.

3000
2500

3000
5000

0
0
8000

0
0
Total

ii. Raw Material (per month)

S.No

Description

Broom Sticks

Unit

Qty.

LS

Rate

Amount Rs.

15000

15000

0
0
0

0
0
0
15000

0
0
0
Total
iii. Utilities (per month)
S.No

1
2

Description

Power
Water

Unit

LS
LS
Total

Amount Rs.

500
500
1000

NSIC

Project Profiles

iv. Other Expenses (per month)

S.No

1
2
3
4
5

Description

Amount Rs.

Postage & Stationery Expenses

Transportation Expenses
Advertisement Expenses
Consumable Stores
Miscellaneous Expenses
Total

0
1000
0
0
500
1500

v. Total Working Capital (per month)

S.No

1
2
3
4
5

Description

Amount Rs.

Rent
Salaries and Wages
Raw Material
Utilities
Other Expenses
Total

750
8000
15000
1000
1500
26250

8. COST OF PRODUCTION (PER ANNUM)

S.No

1
2
3

Description

Total Working Capital

Depreciation
Interest
Total

Amount Rs.

@
@

315000
4500
4778
324278

15%
12%

9. TURNOVER (PER YEAR)

S.No

Description

Broom Sticks

Unit

Qty.

Nos.

35000

Rate Rs. Amount Rs.

10

Total

350000
350000

10. FIXED COST (PER YEAR)

S.No

1
2
3
4
5

Description

Depreciation
Interest
Rent
Salaries & Wages
@
Other Expenses incl. Utilities @
Total

Amount Rs.

4500
4778
9000
38400
12000
68678

40%
40%

11. PROFIT ANALYSIS & RATIOS

1
2
3
4

Net Profit
Percentage of Profit on Sales
Return on Investment
Break Even Point

Rs.

25723
7%
42%
73%