NSIC

Project Profiles

CORRUGATED BOXES
1. INTRODUCTION
Corrugated paper board containers are extensivelyused in the packaging of industrial
as well as consumer goods. Major products like crockery, automobilecomponents,
glassware, pharmaceuticals, soaps and cosmetics, biscuits etc require proper packing
and with the growth of these indutries, demand for corrugated boxes is encouraging.

2. MARKET
Due to the advantages like light weight, case in fabrication and good preferability as
per the requiremnt of end users, the demand of corrugated boxes is encouraging.
The demand forcorrugated boxes is growing mainly where there is scope forpacking
tamarind cakes and other processed products.

3. MANUFACTURING PROCESS
The process of manufacture of boxes is 1) Longitudinalcutting 2) Greasing and 3)
Slotting and stitching

4. PRODUCTION CAPACITY PER ANNUM

Capacity
Selling Price

Rs.

240000 Nos per annum

7 per
number

5. PROJECT COST/CAPITAL INVESTMENT

S.No

1
2
3

Description

Preliminary & Preoperative Expns

Fixed Capital
Working Capital for
Total Project Cost

Amount Rs.

25000
510000
217600
752600

month(s)

6. MEANS OF FINANCE
S.No

1
2
3

Description

Promoter Contribution
Subsidy
Term Loan
Total

%age

Amount Rs.

15%
20%
65%

112890
150520
489190
752600

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Project Profiles

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

Rented

2500 per month

ii. Machinery and Equipment

S.No

1
2

Description
Corrugated machine

Qty.

1
1

Cutting machine
Total

Rate

270000
240000

Amount Rs.

270000
240000
510000

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

1
2
3
4

Description

Nos.

Manager/Entrepreneur
Skilled Labour
Helpers
Clerks
Total

1
2
3
1

Sal/mon. Amount Rs.

3000
2000
1500
2000

3000
4000
4500
2000
13500

ii. Raw Material (per month)

S.No

Description
Kraft paper

Unit
Kgs

Qty.

20000

Rate

4.25

Total

Amount Rs.

85000
0
85000

iii. Utilities (per month)

S.No

1
2

Description

Power
Water

Unit

LS
LS
Total

Amount Rs.

1000
300
1300

iv. Other Expenses (per month)

S.No

1
2
3
4
5
6

Description

Postate & Stationery Expenses

Transportation Expenses
Advertisement Expenses
Consumable Stores
Repairs and maintenance
Miscellaneous Expenses
Total

Amount Rs.

1000
1000
1000
2000
500
1000
6500

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Project Profiles

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

2500
13500
85000
1300
6500
108800

8. COST OF PRODUCTION (PER ANNUM)

S.No

1
2
3

Description

Total Working Capital

Depreciation
Interest
Total

Amount Rs.

@
@

1305600
76500
58703
1440803

15%
12%

9. TURNOVER (PER YEAR)

S.No

Description

Unit

Qty.

Nos per annum

240000

Rate Rs. Amount Rs.

Total

1680000
1680000

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.

76500
58703
30000
64800
37440
267443

40%
40%

11. PROFIT ANALYSIS & RATIOS

1
2
3
4

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

Rs.

239197
14%
32%
53%