P.No.25\1 PROF. NO.25 PROJECT PROFILE ON PHENOL MANUFACTURING UNIT 1. INTRODUCTION Phenyl or Pine cleaners are pine oil emulsion in water. Pine cleaners are very good cleaners having disinfecting and deodorizing properties. White phenyl is finding wide spread use and acceptance as hard surface cleaner to remove greasy, fatty and oily soils or various non-porous hard surfaces like floors, bathrooms marbles, ceramics, metals, plastics, concrete, granite, walls, cabinet, appliances etc. White phenyl assist in the removal of dirt and grim and leave all surfaces and atmosphere pleasantly smelling. It is being popular day by day in India in homes, hospitals, clinics, veterinary clinics, restaurants, factories, food establishments, offices, shops, schools, institutions, government departments etc. 2. MARKET DEMAND Phenyl has several advantages over other similar products and the same are listed below: 1) Pine cleaners are non toxic to human and pets. 2) These cleaners are non-irritating ho human skin, unlike phenol and creosote based black disinfectants. 3) Smell is very pleasant which lingers after use. 4) Do not discolor surfaces. 5) Pine oil is obtained from pine tree therefore the cleaner are herbal and environment friendly. 6) Pine oil has germicidal properties, therefore it is used in hospitals and clinics and pet disinfection. 7) Applicable on a variety of surfaces like glass, metal. Porcelain, enamel, ceramic, plastic, linoleum, stone and concrete etc. 8) It imparts shine to hard surfaces after cleaning. P.No.25\2 Phenyl is used in the cleaning of various floor and toilet accessories. This is required to each household, corporate and the agencies involved in the cleaning of city, hospital and other public area like Railway Station and Bus Stands etc. Its demand totally depend upon the status of the city and the households, mean it is more require in city in compression to the rural area. As per the estimates minimum demand of a district place is around 1000 liters every month, which increases up to 50000 liters per month depending upon the class of the city, even this demand is much higher in metro cities. The above demand only includes the corporate and the households using the product. In addition to above phenyl is also required by Railway, Municipal Corporation and the organization like Sulabh Compex requires about 25- 2500 liters per day depending upon the requirement. This mean the demand of phenyl is exists in all area. 3. PRODUCTION TARGETS Basis of estimation: 300 Working Days in a Year Single Shift basis 8 hours per shift Phenol Quantity (Liters) 100000 Value (Rs) 2300000 4. MANUFACTURING PROCESS Firstly take 100 gram Rosin and 100 gram Caster Oil in a container, warm it gently. Similarly in another container take 66 gram NaOH (Caustic Soda) and dissolve it in 200 ml of distilled water. Now caustic soda is tickle down into warm mixture of Rosin and Linseed oil by stirring gently. It would take15-20 minutes. Now stand for 45 minutes and maintain the temperature of solution at 80-90o C. Now add with constant stirring, 300 gram creosote oil and 20 gram Monochloro phenol into warm mix of Rosin, Linseed Oil and Caustic Soda. Now add desired quantity of distilled water and warm the mixture with stirring upto 90-100o C for P.No.25\3 15-20 minutes. Cool the mixture and it is ready for packing. Different Raw Materials required for different Grades of Phenyl. General composition Hospital grade phenyl is given below: 1. Rosin – 2.50 Kg 2. Groundnut Oil – 2 Kg 3. Caustic Soda – 250 gram 4. Caustic Potash – 250 gram 5. Distilled Water – 7.5 liter 6. Low Creosote Oil – 15 Liter 7. Carbolic Acid – 15 gram 8. Soft Water – 2-4 Liter 5. QUALITY CONTROL STANDARDS Quality of the product must be as per customers demand and BIS specification. 6. LAND & BUILDING 1. Covered area Sq. Ft. 500 2. Uncovered area Sq. Ft. 500 3. Total area Sq. Ft. 1000 4. Whether constructed or Rented Rented 5. If constructed, constructed value Rs N.A. 6. If Rented, Rental value (per month) Rs 2000 7. MACHINERY AND EQUIPMENT S.N . Description Qty. Value (Rs.) 1. Mixing Machine 1 230000 2. Reaction cattle 1 3. Filling Machine 1 P.No.25\4 4. Storage vessels 1 5. Hand Tools L.S. 6. Sales Tax, Freight & Insurance etc. 23000 Total 253000 8. RAW MATERIAL (PER MONTH) S.N . Particulars Quantity Value (Rs) 1. Rosin 800. 12000 2. Caster Oil 800 32000 3. Creosate Oil 2400 43200 4. Sodium Hydroxide 500 7500 5. Monochloro Phenyl 160 5600 6. Bottles for packaging L.S. 2000 Total 102300 9. STAFF & LABOUR (PER MONTH) S.N . Particulars Qty Rate Value (Rs) A Administrative and Supervisory (i) Manager 1 3000 3000 (ii) Peon/ Chowkidar 2 2000 4000 B Technical (Skilled-Unskilled) (i) Skilled Worker 2 3000 6000 (ii) Unskilled Worker 6 2000 12000 Sub-Total 25000 Plus perquisites @ 30% of salaries 7500 TOTAL 32500 9. OTHER EXPENSES (PER MONTH) 1. Rent of Land & Building 2000 2. Electricity Charges 3000 3. Fuel Exp. 0 4. Advertisement & Travelling 2000 5. Transport 3000 6. Consumable & stores etc. 2000 7. Potage expenses/ telephones 1000 8. Stationery 1000 9. Repairs & Maintenance’s 2000 Total 16000 P.No.25\5 10. WORKING CAPITAL (FOR ONE MONTH) SL.NO. DESCRIPTION AMOUNT(RS) 1 Raw material 102300 2 Salaries & Wages 32500 3 Other Expenses 16000 Total 150800 11. TOTAL CAPITAL INVESTMENT Building & Other Civil Works - Machinery & Equipment 253000 Working capital for one month 150800 Total 403800 12. COST OF PRODUCTION (PER ANNUM) Total recurring cost per year 1809600 Depreciation on machinery & equipment 25000 Interest on total investment @ 10% 40000 Total 1874600 13. SALES PROCEEDS (PER ANNUM) S.N. Item Qty(Liters) Value (Rs.) 1. Phenyl 100000 2300000 Total 2300000 14. PROFITABILITY (BEFORE INCOME TAX) 1. Annual Gross Profit 425400 2. % of Profit on Sales 18.50% 3. Break Even Analysis 3.1 Annual Fixed Cost 582000 3.2 Annual Sales 2300000 3.3 Annual Variable Cost 1227600 3.4 Break Even Point 54.27% P.No.25\6 Break-Even Analysis (% of Total Production envisaged) Annual fixed cost X 100 -------------- ---------------- ------------- = % Annual sales – Annual variable costs 15. Manufactures/ Suppliers of Machinery 1 Bombay Machinery & Tools Syndicate 79, Siyaganj, Indore -452 007. Ph.- 536431,542067. 2. Jitendra Agencies 5, shivsadan, sardar patel marg, Indore. 3. Indore machinery stores 40, siyaganj, main road, Indore 452 007 Ph. 534339 4. Huma Traders Infront of shajanabad thana, Shajanabad, Satna(m.p.) 5. S.R. Engg. Co. Jawhar Marg, Indore 16. Suppliers of Raw Materials From Local market of the area. 17. IMPLEMENTATION PERIOD Proposed Project can commence production with in 8-12 weeks after sanction and first disbursement of term loan. P.No.25\7 18. ASSUMPTION FOR GENERATING PROJECT PROFITABILITY 1 Number of Working Days in a year 300 Days 2 Number of Shifts in a day 1 One 3 Hours in a Shift 8 hours 4 Plant Capacity As per demand of service 5 Raw material Estimates Based upon product Mix 6 Raw Material Availability All districts of MP 7 Depreciation Straight Line Method 8 Manpower According to project Requirement 9 Rent estimate On the basis of current market prize of the area. 10 Potential Area of Marketing the products Household and Hospital demand of the area. 11 If project is funded, term loan would be 100% of Total investment 12 Moratorium Period 6- 12 months 13 Repayment Period 5-7 years 14 Project may be established under PMEGP (GOI) / Tribal Self Employment Scheme (NSTFDC) or Rani Durgawati Scheme of MP