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A. INTRODUCTION:
Mosquitoes
grow in every place where environment is not kept clean, neat and tidy.
As
long as the rural, urban and metropolitan areas are not fully made
pollution-free, and access to sanitation is still available only to 14% of the
population, nothing can prevent the mosquitoes preference for these places
as their most conducive rearing ground for attacking human beings living
there. With the growth of population and standard of living of the masses,
Mosquito repellents have emerged as most useful tools in households
preventing epidemics like Malaria, Filaria, Dengue fever and other Mosquito
spread diseases.
The mosquito coils are the most universally used Mosquito Repellents for
repelling the mosquitoes.
It is very
mosquito coils viz. Bombay Chemicals Ltd., in their product Tortoise use
Pyrethrum as the basic ingredient.
The Bureau of Indian Standards also prescribes the standards for the
Mosquito Mats Allethrin based in IS 13439 - 1992.
The following Indian Standards for pyrethrum are also of relevance in this
context.
Specification for Pyrethrum Emulsifiable Concentrates IS:4808 - 1982.
Specification for Pyrethrum Extracts IS:1051 - 1980.
Specification for Pyrethrum Dusting Powders IS:6178 - 1982.
None of the leading Allethrin based Mosquito coils brands in the market
namely Good Knight, Rooster, Jet, Mortein, Casper, have obtained ISI
certification.
C. MARKET POTENTIAL:
A market analysis on Mosquito repellents emanates from the need to repel
the mosquito.
repellent acting as a barrier between mosquito and the people need not be
over emphasised.
health awareness and media publicity the people living there start using
home insecticides in a large scale.
The Mosquito repellents are commonly used by all sectors of society. The
usage of repellent is the easy method to prevent mosquitoes.
The frequent
power failures in villages and towns increase the usage of mosquito coils
compared to mosquito mats.
As the power shortages, power cuts and load shedding would seem to exist
for another few years to come, the demand for Mosquito coil is bound to
increase.
It
The social
indicators as obtained in India and given below indicate the heavy backlog
in the areas of preventive health measures which include improvement of
general hygiene.
1037 million
2031
2%
21.35%
Urban population
28%
Rural population
72%
135.2 million
171.3 million
640.0 million
Source: Statistical outline of India Tata Services Ltd., 2003-04 & Census
2001.
In view of the weak social parameters as mentioned above, people are more
prone to mosquito-spread diseases like malaria, filaria, etc.and in order to
prevent the people from the vagaries of mosquito biting, the coil type
repellent has an edge over mat type repellent especially in rural areas.
Manufacturer
Tortoise
Bombay Chemicals
Jet
Casper
Mortein
GoodKnight
Banish
All Out
Odomos
Maxo
Sumo
This
Subsequent to introduction
of Good Knight several other brands were introduced by Godrej itself and
several others followed. The popular brands currently available in the
market are the following:
SUPPLIERS OF MOSQUITO REPELLENT MATS
Brand
Manufacturer
Packing
Good Knight
30 mats
Jet
30 mats
Banish
30 mats
Mortein
30 mats
Casper
30 mats
Raid
30 mats
Odomos
30 mats
4.00
1.50
Total
5.50
Manufacturing Process :
The Mosquito Mats manufacturing involves the following sequence of
operations.
Rs.P.
0.38
Mat Solutions
0.22
Wrapper
0.12
Utilities
Electricity: For operating the machinery the power load required is about 2
HP.
Water : Water is not required for process and water is required for human
consumption only.
--
8. IMPLEMENTATION SCHEDULE:
8. ASSUMPTIONS
Capacity utilisation 60% First year 70% second year and 80% third year.
Raw material cost per mat Re.0.72 inclusive of packing material cost
FINANCIAL ASPECTS
1. COST OF PROJECT
Rs. lakhs
0.40
5.50
Contingencies
0.50
0.30
Pre-Operative expenses
0.50
Margin for WC
5.43
Total
12.63
2. MEANS OF FINANCE
Capital
8.13
Term Loan
4.50
Total
12.63
300
300
300
Utilisation
60%
70%
80%
180
210
240
Rs.25.00per 30 mats
Selling Price
Sales Value (Rs.lakhs)
150.00 175.00
200.00
Raw Materials
129.60
151.20
172.80
Power
0.11
0.13
0.14
0.96
1.01
1.06
0.60
0.66
0.73
Depreciation
0.90
0.77
0.65
132.17
153.77
175.38
1.20
1.26
1.32
Selling expenses
3.00
3.50
4.00
0.54
0.47
0.34
2.82
2.82
2.82
139.73 161.82
183.86
Cost of Production
Total
Profit Before Tax
10.27
13.18
16.14
3.49
4.48
5.49
6.78
8.70
10.65
Add: Depreciation
0.90
0.77
0.65
Cash Accruals
7.68
9.47
11.30
Margin
Bank
Amount
Finance
4. WORKING CAPITAL:
Months
Values
Consumptions
Raw Materials
1.00
10.80
25%
2.70
8.10
Finished goods
0.50
5.51
25%
1.38
4.13
Debtors
1.00
12.50
10%
1.25
11.25
Expenses
1.00
0.10
100%
0.10
0.00
5.43
23.48
28.91
10.65
Sales
Profit before Interest and Tax
19.30
Total Investment
Profit after Tax
53%
36.11
10.65
Promoters Capital
5%
200.00
131%
8.13
Rs. lakhs
1.06
0.73
Depreciation
0.65
1.32
Interest on TL
0.34
4.10
16.14
FC x 100
FC +P
4.10
20.24
80
100
100
Dosing Machine
GIDC Industrial
Dist. Jalgaon.
3.
The
Qty
Ribbon blender
1 No
Sieving machine
1 No
Weighing Machine
1 No
Production:Kneading machine
1 No
Mixing machine
1 No
Extruder
1 No
1 No
1 No
Conveyor
Moulds
Drying Oven
Steel Trays
Trolleys
The machines can be supplied by reputed suppliers on turn-key basis.
MANUFACTURING PROCESS :
The Mosquito Coils manufacturing involves the following sequence of
operations.
Blending Process:
Orange fillers - Wood powder, Saw dust, Coconut Shell powder Binder Jigget powder, Starch etc.. ------------------> DRY BLENDING
Active Ingredient ----------------> KNEADING
[Dyestuff, Fungicide, Water] ---------------------> EXTRUDING
Rejected
Wet coils <---------------
STAMPING
DRYING
PACKAGING
QUALITY ASSURANCE
PRODUCTS
RAW MATERIALS
The raw materials required for manufacture of Mosquito Coils are Allethrin,
Coconut shell powder, oil of citronella, Benzoic Acid, Dyestuff and Binders.
These are available locally from dealers.
(Per Kg of Mixiing Batch)
Allethrin
0.2%
2 gms
Rs.9000/kg.
78.6%
786 gms
Rs.12/kg.
9.43
10 gms
Rs.600/kg.
6.00
102 gms
Rs.80/kg.
8.16
5%
50 gms
Rs.45/kg.
2.25
5%
50 gms
Rs.50/kg.
2.50
Citronella Oil
1.0%
Benzoic Acid
10.2%
18.00
Binding Agent
- Jigget Powder
Colour
46.34
Recycled Coil waste 15%
6.95
53.29
1.30
Man Power
Man power required will be as follows
Supervisor
Skilled workers
--
6000
12000
-- 10
4000
40000
52000
10400
62400
Accountant
--
4000
4000
800
4800
Total
67200
Rs.8.06 lakhs.
8. IMPLEMENTATION SCHEDULE:
The machinery is available indigenously.
ASSUMPTIONS
Installed capacity is 150 lakhs Coils per annum.( 75 lakhs Double Coils)
Capacity utilisation 60% First year 70% second year and 80% third year.
MACHINERY SUPPLIERS
1.
2.
3.
Chemicals
Other Chemical dealers in Chennai.
FINANCIAL ASPECTS
1. COST OF PROJECT
Land & Building (Advance)
Plant & Machinery
Rs.lakhs
0.80
25.00
Contingencies
2.50
0.30
Pre-Operative expenses
0.50
Margin for WC
2.97
Total
32.07
2. MEANS OF FINANCE
Capital
11.45
Term Loan
20.63
Total
32.07
150.00
150.00
150.00
60%
70%
80%
90.00
105.00
120.00
No of double coils
45.00
52.50
60.00
99.00 115.50
132.00
58.50
68.25
78.00
4.05
4.73
5.40
Power -- 5 HP
3.40
3.97
4.54
8.06
8.46
8.88
0.36
0.40
0.44
Utilisation
Rs.2.20/-
Depreciation
4.13
3.51
2.98
78.50
89.32
100.24
3.60
3.78
3.97
Selling expenses
2.97
3.47
3.96
2.48
2.17
1.55
1.62
1.62
1.62
89.17 100.36
111.34
Cost of Production
Total
Profit Before Tax
9.83
15.14
20.66
3.53
5.43
7.41
6.30
9.71
13.25
Add: Depreciation
4.13
3.51
2.98
10.43
13.22
16.23
Margin
Bank
Amount
Finance
Cash Accruals
4. WORKING CAPITAL:
Months
Values
Consumptions
Raw Materials
1.00
4.88
25%
1.22
3.66
Finished goods
0.50
3.27
25%
0.82
2.45
Debtors
1.00
8.25
10%
0.83
7.42
Expenses
1.00
0.10
100%
0.10
0.00
2.97
13.53
16.50
6. PROFITABILITY RATIOS BASED ON 80% UTILISATION
Profit after Tax
Sales
Profit before Interest and Tax
Total Investment
Profit after Tax
Promoters Capital
13.25
132.00
23.83
45.60
13.25
11.45
Rs.lakhs
8.88
0.44
Depreciation
2.98
3.97
10%
52%
116%
Interest on TL
1.55
17.82
FC x 100
FC +P
20.66
=
17.82
38.48
80
100
100