ASISH BASU of Apan Biotech at Invstor.com

ASISH BASU

KOLKATA, WB (IND)

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Startup

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Apan Biotech

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Location: Kolkata

Industry: Healthcare

Year Founded: 2011

Number Employees: 1-10 people

Business Stage: Creation/Idea

Entity Type: Limited Partnership

Description: CHAPTER-1 M/S Apan Bio-Tech INTRODUCTION: The 21st. Century will be remembered for greater technology achievement, including greater understanding of the atoms structure, in formulation explosion that has resulted from advance in Computer Technology the information obtained from the space exploration. When measures in terms of its impact on the peoples lives though, 21st. Century, “ might as well be called a ‘Drug Age’. Although the Drugs alone cannot be considered to be sole reason for the progress in medicine achieved in the (URL removed)tury a glance back to its as 40 years ago indicated that “ at that time there were no antibiotics, no corticoids, sulpher drugs only few vitamins no tranquilizers, no antuhypettensives, no oral contraceptice drugs were available. “ Many great strides however, have been made in the last 40 years. So many disease have been controlled or irradicated and may experts agree that by the end of this century Pharmaceutical may be of greater importance in cure lives because of anticipated although break through in the field of neuro biology, celluler differentiation, genetics in wonder change. Nobel prize winning Bio-Chemist labeled drug as “ One of the greatest blessings by but perhaps the greatest blessings of our time”. Although every one whether friend or for of the Pharmaceutical Industry recognize the contribution of the industry to the health and welfare of the public availability of Pharmaceutical to the general public have merely occurred by chance. Pharmaceutical Industry concerned with Research and Development but it is almost important to keep in mine in the Pharmaceutial Marketing System(Working Procedure, Distribution, Re-Distribution, Correct Information). The Pharmaceutical marketing system is placing the drug available at the right time, at the right place at the right quantity, at a reasonable price. The Development of the industries post independence period in various fields of growth reflects advancement of Indian economy and Technology which have been acknowledged with surprise and appreciation by the other developing countries of the world. But spectural development of Pharmaceutical Industry has perhaps surprised all the development records in other spheres of activities. For example from Rs.10 crores investment during 1948 it has uptil 2004-2005 are going to be produced worth of Rs.4.112 crores ( i.e. completion of 9th plan) with a base capital of Rs.1000 crores . The profitability margin and further increase scope of its inherent expansion possibilities in the investment and product ratio at present with the technical expertise and other basic infrastructures facilities, involving availability of indegeneous raw materials, at cheaper rates in abundance, low cost of wages and vast and market in India and abroad. In fact, since pre-independence till 1972-73 these drug industries were completely under the fold of the big monopolist and multinational companies who have been exploiting the market and its profit charging the generic names and brand name of one decicines to other, neglecting the capacity and the purchasing limitations of the public in India just to make the utilization of their Technical capacities and market trend. The result is that against the genetic profit ratio, the coverage of population under medicinal treatment and modern drug therapy is only 30 to 35% approximately, the removing percentage being deprived of this live saving drugs out dire poverty. The survey of the population growth and the present trend business of these drug industries by these reveals two fundamentals steps to be taken which a bonovolent government cannot was to brook further delay in the interest of national economy as also of the interest of the common mass. The two positives thinking that were deemed to be adopted comprised of:- i) to extend facilities of medicinal treatment to the people and to bring more proper sections under this scheme by ensuring of medicine at cheaper rates and ii) To grave and combat the monopolistic endeavour of the big houses as far as practicable through prolonged process. The attempts, though not seen to be a gigantic success, undoubtedly appear to be fruitful and laudible steps to achieve the aim and the success of the implementation of the project. The Pharmaceutical industry plays an indispensable role in the health care of the entire population of the country whether rural or urban. The Pharmaceutical production commenced in India way back in 1901 when a unit to manufacture formulations out of important drugs was set up in West Bengal. The growth of this industry remained negligible upto 1947. During the last 25 years, the India Pharmaceutical Industry has been rapid strides in both formulations and bulk drugs. In fact the pharmaceuticals industry has made a worth while contributions to the national economy. The comparative performance of the Drug Industry is given in the following table:- (Rs. in crores) Year Production of bulk drugs Production of formulations Imports of Drugs and Pharmaceuticals Exports of drugs and pharmaceutical 2001-02 90.00 400.00 46.90 43.14 2002-03 226.00 1150.00 120.03 71.66 2003-04 377.00 1827.00 215.62 217.49 2004-05 640.00 3420.00 625.72 856.90 2005-06 880.00(Target) 4890.00(Target) 375.00(Target) 780.00(Target) Prime facie, the achievements of the drug industry in India seem satisfactory. However, in reality there has been considerable short fall in the production compared to the plan targets during the 7th and 8th plans. The shortfall in the production of bulk drugs is over 40 percent and in the case of formulations is about 35 per cent. According to the studies and projections made by National Council of Applied Economic Research (NCAER), the domestic demand for medicines by the year 2000AD, when the country is supposed to achieve the objective of “Health for All”, will be Rs.16,000 crores. This is more than four times the current production levels. In addition the country will have to produce sufficient surplus for exports. The value of the free world ethical pharmaceutical market in 1990 was around US 165,200 million. In 1980 the value of the total world market was US 62,315 millions, which has almost tripled during this decause. The U.S. Pharmaceutical market accounts for almost 30 per cent of the world market. In the table below the list of than largest Pharmaceutical market in the world has been given. The table shows that the perceptia expenditure of drug in India is very low compared to developed countries. (URL removed). Country Percentage of world market 1 U.S.A. 30 2 JAPAN 17.6 3 FRG 9 4 FRANCE 6 5 IALY 6 6 UK 3 7 CANADA 2 8 SPAIN 2 9 INDIA 1.5 10 BRAZIL 1.4 Today in India there are as many as 20,000 units, big and small, engaged in the manufacture of pharmaceuticals. Nearly 500 of these are in the orgganised sector and majority of balance units belong to the small scale sector. Collectively the industry generates employment for almost 10 lakhs people. On the national level, Gujrat accounts for 45 percent of the total pharmaceutical production in the country. From the above it can be seen that there exist vast opportunities in the field of pharmaceutical industry in India as the market for formulation is estimated to grow at an average rate of 11-12 per cent annually in coming years. As indicated earlier, the per capital consumption of drug formulation is very low compared to many developed countries based on the production value of formulation in India and its export in 1991, which are Rs.3560 crores and Rs.1230 crores respectively and with a nominal import, the per capita consumption of drug formulation in North- Eastern Region is again very low on the conservative basis if we consider per capital consumption of drug formulating in Eastern region at Rs.15/- the total current demand of drug formulations in the Eastern region can be estimated at approximately Rs.50 crores. Considering the increase in literacy, Govt. budget on health availability of medical professionals and population etc. in coming years, the demand of drug formulations in the Eastern region will have a considerable growth. Most of the requirements of drug formulation of this region is met by the supplies from outside the region. In view of the above, there appears to be bright prospect for this unit in marketing its products provided proper marketing strategy is adopted to achieve the desired market share required for its viability the product formulations have been identified keeping in view the requirements of such formulation in this region. MARKETING ARRANGEMENT: The promoter group is highly experienced in marketing of pharmaceutical products. So the company should not face any difficulty in formulation a suitable marketing arrangement. The products will be sold through distributors and as well as a unit for marketing department of the company will look after the marketing and distribution activities of the company. There will be an vast experienced Marketing Director who will lead the marketing department. The total market will be divided into two regions to be looked after by Regional Sales Manager. There will be Area Sales Managers and under them 40 numbers of Professional Service Representatives have been proposed to cover the whole market territory. Thus, with a professional approach in selling and back ground of promoters, the company should not face any problem in marketing its products. The pharmaceutical industry is a very important industry sector as the health care of millions of people of our country depends on it. At present India has top produce more than Rs.16,000 crore worth of drugs and pharmaceuticals to substantially fulfill its solemn commitment of Health for all by the year 2000. The industry has grown in a rapid pace and production value of formulations in 1990-1991 was Rs3560 crores and export from India also grew from 4 million in 1952-53 to Rs.12,500 crores in the year 1990-91. Accordingly various pharmaceutical industry have set up in different parts of the country to boost the production of drugs formulations needs for the “Health Care” of millions of the people of our country. In Eastern region, most of the requirements of drugs formulations are met from suppliers from outside of the region. There are not sufficient manufacture West Bengal and very in Assam producing formulations with low production capacity. In view of the above consideration the demand and marketing opportunities in drug formulations into the Eastern Region a group of entrepreneurs from Assam and West Bengal has incorporated “ ALMAS LABS PRIVATE LIMITED” – at Naihati, 24 Parganas to manufacture various drug formulations with the adequate modern equipment. The company Proposes to land for the factory of 50 kathas or less and civil works will start if funds are available . The promoter group is having long experience in pharmaceutical industry and is quite conversant with all aspects of the same industry. WORLD PRODUCTION OF DRUGS-1990 MILLION US Global 96,000 Indian Production as % of World Population 8.8% Indian Population as % of World production 251/2 PRICING: A new Drug Policy announced recently explains that in order to increase production which will lead to ultimate lowering of price drugs it is proposed to reduce the existing span of price control over drugs and pharmaceuticals. However, a very strong monitoring system will be evolved. As against the existing three categories of drugs and pharmaceuticals hereafter there will be two categories. The first category will consist of drugs necessary for National Health Programme and the second category that of essential drugs. Formulation, of the first category would have a MAPE (Maximum Allowable Post Manufacturing Expenses) of 75% and those of the second category of 100%. A high level expert committee has drawn up a list of drugs to be included in the second category. A new Drug price control order(DPCO) has been announced after the finalisation of drugs in two categories. The Government has retained the right to bright within ambit of control any drug in the recontrolled category whenever considered necessary. Prices of drugs in the controlled category would be constantly and closely monitored and an effective monitoring system developed for those. Government has the major role in fixing and controlling prices. It frames the policy, covers the process formula and monitors and approve prices. The main objective if the new drug policy and the new price control order into make avail as high quality. The new price norms recognize two fundamental economic principles First, the price of drugs like that of anything else is determined by cost of production. A corollary is that price reduction is possible only if the cost of production is brought down, second, unless a reasonable return is assured producers will not be encouraged to increase production of essential medicines. It is imperative to encourage cost, effective production through technological improvement, Productivity improvement and economic scale of manufacture need to be promoted by encouraging and rewarding efficiency and by removing obstacles to growth. The policy contains several measures and programmes designed to achieve this. Prices of medicines in India are not high, either in reaction to the cost of production of when compared to prices prevailing in other countries, developed and developing. This is a fact borne out experiences and confirmed by official studies and reports. Inspite of spiralling costs drug prices have not rised to the extend prices of other essential commodities and services have increased. The average annual increase in drug prices during the 15 year period 1990-2000 to 2005-2006 was 6% as against 17% in the case of all commodities. Drug prices compare very favourably with those of other essential commodities and services. Medicines today offer best value for money. HOW EXPENSIVE ARE MEDICINES ? Average cost of Average cost of common Medium per day goods of daily consumption Medicine ___________________________________________________________________________ Rs. Rs. Common headache 0.50 Cup of tea 1.00 Common allergy 0.30 Thali meal 8.00 Common cold 0.50 Milk(Half lit) 3.00 Gas trouble(Antacid) 0.50 Egg 0.90 Asthena 0.75 Banana 0.50 Diarrhoea 0.60 Soft drink 3.25 Fever(Antiobiotic) 2.00 Subarban Train 3.00 Ticket(Return) Amoebicides 1.50 Bus Fare 0.50 Tuberculosis(Multi drug 3.50 Inland letter 0.50 Treatment) Leprosy 0.30 News paper 1.80 Diabetees 0.20 Public Telephone calls 2.00 Blood Pressure 0.75 Packet of Cigarette(Ordinary) 4.00 Anging(Chest pain) 1.75 Artharities 1.75 PRODUCTS, ITS USES AND MARKET PROSPECT: The major products proposed in the unit are drugs formulations in the form of oral liquid and tablet and capsules and ointment in near future. The list of the products in their trade name proposed to be manufactured by the unit and the indications where they are used are given below:- NAME OF THE PRODUCT all proposed USERS ORAL PRODUCT A) Hilcer Suspension Antacid B) Hilcerplus suspension Antacid specific C) Andys Suspension Anti Diarrheal D) Neufen Plus Suspension Anti implemmatory Annalgesic Antipyretic E) Nulka Syrup Alkali Syrup F) Carmolytic syrup Carmolitic Anzym G) Pulp Plus Syrup Appetiser and Restorative Tonic H) Pulp plus drop Apetiser and Restorative Tonic I) Green Liv Syrup Liver Dysfunction J) Green Liv Drops Liver Dysfunction K) Protohem Syrup Iron Therapy L) Live long drops Multivitamin Restorative Tonic TABLETS: Neufen Plus Analgesic, anti-inflammatory Diloxanide Furoate Anti-glartdasis Metronidazole 200 mg Anti Amobic Almol Antipyretic Ibuprofen Analgesic Palp Plus Appetiner Green Liv Liver dysfunction Bone Cal Calcium therapy Timed Tablet Anti Amobio Timed IV tablet Anti Amoebic Some of the formulations are quite latest in the Indian Drug Industry. CAPSULES: A) Alnadex Caps : Vitamin and Minerals with Lactobacilus B) Almox Caps(500) : Broad Spectrum Antibiotic C) Almox 250 : - do – D) Lactotetra 500 : A dose convenient broad Spectrum Ahlibiotic with Lacto. E) Protohem Caps : Iron Therapy for specially During Pregnancy and Lactation. OINTMENT: A) Stanan Cream : Antifungal Cream B) Burnex Oint : Latest KTF Combination for Cuts and Burns. C) Bactorprim Oint : Antilacterial Oint D) Ascoi Oint : For Cuts, Wonds and for any Dressing in above respect. E) Meclop Vag. Oint : Most effective Vag. Oint uses For Trichmoniasis and Painful Mensturation. THE PROJECT: THE MANAGEMENT-FACILITIES TOBE PROVIDED FOR: THE PROJECT: The proposed project will be modern sophisticated medicine formulation unit at Naihati, 24, Parganas, West Bengal (Proposed). All latest State of the art machineries and equipment will be used for the formulations. THE MANAGEMENT: The project is proposed to be implemented by a Private Limited Company under the name and style of APAN BIO-TECH PRIVATE LIMITED with the registered office at P-69,E Unique Park ,Behala ,Kolkata 700 034 , West Bengal. The company has already been incorporated in the year of 2005 and started the marketing since last 1 years. The management consisting of Mr. Ajit Kumar Nath , Mr. Asish Basu , Mrs Nath and Mrs Basu . who are successful Industrial and is well experienced in pharmaceutical business financially sound and fully capable of managing the pharmaceutical unit successfully. Sri Ajit Kumar Nath is the Managing Director and Sri Asish Basu is the key-personnel as Manager Marketing. The bio-data of all the Directors are enclosed and the functional responsibilities of 4 Directors are envisaged as follows:- ( WILL BE GIVEN IN DUE COURSE) FACILITIES PROPOSED TO BE PROVIDED: Initial teething problem the company experienced difficulty in organizing the delivery of the goods as needs to the valued customer due to dependents with the co-manufacturers and non availability of fund. The factory will have the other facilities modern factory. PROJECT COST: The company proposes to approach the Financial Institutes for financial assistance for the purchase of machinery and equipments, building and civil works, misc, fixed assets, pre-operative expenses, margin money for working capital. The cost of plant and machinery and misc. fixed assets estimated at Rs.80.39 lakhs inclusive of taxes, carriage, transportation, packing, forwarding, insurance charges etc, All the equipments will be available indigeneously. The detail list of equipments is enclosed herewith. FACILITY PROPOSED IN THE PROJECT: The proposed Drug Formulation industry aims at providing medicine for various diseases as discussed. The various sophisticated equipments proposed in the project and their uses in the proposed center. The unit in a position to tackle the growing demand for proper supply. Due to constant marketing and market development and advancement of technology and where MARKET IS READY FOR SALE, the facility of the project is so essential for setting up formulation factory. COST, PROFITABILITY AND OTHER FINANCIAL ASPECTS OF THE PROJECT: The financial projections for a period of 6 years operation of the unit and various ingredients of the cost of operation and annexed to the report. The cost of such ingredient have been taken report on the basis of the present price structure. The profitability has been worked out on the basis of production programme indicated assuming the production at 40% of the installed capacity in the first year, 50% in the second year and 60% in the third year and 70% in 4th year and onwards. RAW MATERIALS: The total requirement of raw materials after considering process loss @ 5% has been worked out as shown. The total cost of raw materials has been estimated at Rs.477.20 lakhs at 100% capacity. Utilisation and will vary in the same proportion at other utilization levels. PACKING MATERIALS: In Pharmaceutical industry, the cost of packing materials is one of the major components in the cost of manufacture. The cost of packing materials(inclusive of bottles, caps, lebels, which are generally considered as a part of raw materials) at 100% capacity utilization has been estimated at Rs.283.08 lakhs and will very in the same proportion at other capacity utilization level. The details estimate of the packing materials are shown. POWER AND FUEL: The cost of power based on the total connected load of 18 KW has been estimated at Rs.0.86 lakhs per annum as shown. MANPOWER AND PLANNING: The total manpower in the project will be 123 Nos. of persons as shown below: 1) Sales and marketing staff 49 2) Office Staff 16 3) Factory Staff 9 4) Factory workers/staff 40 5) Administrative staff 3 6) Distribution staff 6 ____ 123 ____ All the required manpower including the executive will be available locally. WATER: The requirement of the water for the factory and for other purpose involved and hence no effluent treatment measures are necessary as no hazardous effluent are committed in the unit. SCHEDULE OF IMPLEMENTATION: The major activities and their implementation schedule is shown as under: (URL removed). Activity From To 1) Site Development 2) Civil works including factory godown. Boundary wall 3) PLANT AND MACHINERY: Placement of orders 4) Receipt of the plant and machineries & other equipment at site 5) Arrangement of raw materials 6) Arrangement of power 7) Installation of machinery 8) Manpower training 9) Trial Run 10) Commercial Production from the factory 11) Commercial production from Co-Manufacturers Already processing PROCESS OF MANUFACTURE: The basic process of manufacturing of Tablets and oral liquids are given below: 5.01 Tablets: Tablets can broadly divided into three classes i,e, compressed tablets, sugar coated tablets and entire coated tablets. In the present manufacturing project only two classes of tablet would be prepared. a) General Process: The general process of making compressed tablets are:- i) Direct compression ii) Slugging and iii) Wet Granulation The ingredients that goes into the preparation of a tablet are mixed with some adhesive substances which are called binders. To improve the flow properties of granules in the hopper of the tablet machine. Flow regulators or glidents are added. A lubricant sometimes become necessary to over, come the tendency of the tablet to stick to the punches and dies. For proper disintrigation of the tablet in the system a disintigrator is to be added. If the total quantity of the material become insufficient for proper size of tablets. b) PREPARATION OF SLUGGING: When tablet ingredients are sensitive to moisture or can not stand temperature drying digging and when the tablet ingredients are having binding and cohesive properties, slugging is used to form granulations. It consists of precompressing the dry mixed ingredients with lubricants into sludge which are subsequently connected to the correct size of the granule and recompressed. c) PREPARATION BY WET GRANULATION: In this process, the power ingredients are weighed and blended thoroughly. The powder blend is then shifted through a screen of suitable fineness to remove or break up the lumps. The powder blends are then shifted through an escidlating granulator which brusics the minerals through a screen. Moist materials from the granulater are sprayed in this layer on large sheets of craft paper on shallow wire rays. The dried granules are compressed in tablet punching machine and thus uncoated tablets are prepared some of the tablets are required to be coated to protect the ingredients against the atmospheric oxyten or carbondioxide, to mask uppleasent taste and odour, to improve the appearances of unlocated tablets and to control the site of action of the drug etc. The steps involved in sugar coating may be sub-divided into the following: 1) Wated profing and sealing 2) Sub-coating 3) Runding 4) Colouring and finishing and 5) Polishing Often, the water proofing and sealing step is omitted, but with sensitive substances such as vitamin mixtures it is included. The water proffing is usually made up with arsenic free sheelac. Sub-coating involves alternately wetting the tablets with sub-coating solution and when particularly dry, sprinkling with dusting powder. This cause the tablet to be rapidly filled out. Rounding or smoothing involves application of heavy syrup so that a hard smooth surface is produced, colouring and finishing involves application of thinner coloured syrup in order to build up the tablet further and obtain the desired share of colour. ANNEXURE-XIX PROCESS FLOW CHART Receipt of materials Materials stores Sampling of all materials Qualification of received Raw materials Finalisation of components For formulations Rejected components & Materials stores. Weights and measuring of Components Mixing Granulations Compounding and processing TABLETS LIQUID SUSPENSION a) Tabeling a) Mixing b) Compressing b) Stirring c) Coating c) Filteration d) Inspecting d) Components preparation e) Filling f) Sealing g) Visual Inspection STORAGE BEFORE QUALITY CONTROL STORAGE BEFORE PACKING FILLING, SEALING AND PACKING FINISHED GOODS QUALITY INSPECTION FINISHED GOODS QUALITY INSPECTION FINISHED PRODUCT STORAGE LIBORATORY CONTROL EQUIPMENT WASHING AND CLEANING PLANT CAPACITY: The company proposes to manufactures formulations such as (i) Tablet, and (ii) Oral Liquids. In tablet section, based on the capacity of the tablet making machine having a capacity of 250-400 tablets per minute. The unit will be able to manufacture 1.2 lakhs tablets per day on single shift working. The oral liquids section has a filling machine, the capacity of which is 40 bottles per minutes. Thus the capacity of the unit will be 19200 bottles per day on single shift working. Accordingly, the annual installed capacity of the unit based on 300. Working days in a year has been estimated as below:- INSTALLED CAPACITY: PRODUCT PER DAY PER ANNUM TABLET 1.2 LAKHS NOS. 360 LAKHS NOS ORAL LIQUID 19200 BOTTLE 57.00 LAKH BOTTLES CAPSULES NOS 05.40 LAKHS TUBES OINTMENT 1200 TUBES 3.60 LAKHS TUBES The capacity utilization of the unit in the 1st year, 2nd year, 3rd year and onwards has been estimated at 40%, 50% and 60% respectively and accordingly the annual production of the unit will be as below:- YEAR CAPACITY ANNUAL PRODUCTION UTILISATION TABLE ORAL LIQUID (LAKHS NOS) 1st 40% 180 28.50 2nd 50% 198 31.55 3rd 60% 216 34.20 4th and onwards 70% 252 39.90 Although the unit will be capable of producing at much higher capacity, for the purpose of economic viability projections the above capacity utilization has been considered. TECHNICAL FEASIBILITY: 1) AVAILABILITY OF TECHNICAL : The technical know how of this project is available with the entrepreneur. 2) COLLABORATION IF ANY : NIL 3) TECHNICAL QUALIFICATION : As stated in the Bio-Data the entrepreneurs AND EXPERRIENCE OF THE are technically qualified and marketing ENTERPRENEUR as well as distribution net work of Pharmaceutial sales. 4) AVAILABILITY OF PLANT & MACHINERY : The plant and machinery are indigeneously available. The main manufacturer and suppliers are as follows:- 1. M/s United Engineering(Calcutta) 2. M/s Clit India(Bombay) 3. M/s Asoka Enterprise(Calcutta 4. M/s New Salcon Scientific Concern(Calcutta) 5. M/s Pharma Pack(Bombay) 6. M/s Pam Machinery Company(Bombay) 7. M/s Adair Dutta & Sons (Calcutta) 8. M/s Geolite India Ltd(Calcutta) 9. M/s Gansons Engineers Pvt. Ltd.(Madras) 10. M/s The Scientific Apparatus Company (Calcutta) 5) EXPECTED LIFE OF MACHINERIES : 15 years and above 6) AVAILABILITY OF RAW MATERIALS :Indigeneous(all are available in the . . local market of Calcutta, Bombay, . Hyderabad and Damau Free Port. 7) STANDARDISATION OF QUALITY :Quality Control arrangement both for CONTROl raw materials and Finished product have been provided in the project. ORGANISATION CHART BOARD OF DIRECTORS MANAGING DIRECTOR DIRECTOR FINANANCE DIRECTOR MARKETING DIRECTOR PRODUCTION MANAGER MARKETING MANAGER PRODUCTION MANAGER CHIEF CHEMIST ACCOUNTS OFFICER REGIONAL REGIONAL QUUALITY MANUFACTURING ACCOUNTS RECEPTIONIST SALES SALES CONTROL CHEMIST ACCOUNTANTS OFFICE MANAGER MANAGER CHEMIST CLERK ASSTT. STENO ETC. AREA AREA MANAGER MANAGER SALES SALES PROFESSIONAL PROFESSIONAL ASSTT. (URL removed)MIST SERVICE SERVICE REPRESENTATTIVE REPRESENTATIVE SKILLED LABOUR WORKERS STORES INCHARGE WORKERS AMOUNT Rs. in lakhs CHAPTER-II NON-RECURRING EXPENSES A) LAND Cost 2.50 registration fees -0.20 2.70 B) CIVIL CONSTRUCTION I) Main factory shed ground floor (URL removed). @ Rs.400.00 per (URL removed). 26.00 1st Floor 2724 (URL removed). 350.00 9.53 35.53 ii) Godown 595 (URL removed). @ Rs.300.00 per (URL removed). 1.79 iii) Boundary wall 750 (URL removed). @ Rs.200.00 per (URL removed). 1.50 iv) Culvert , Main gate and security room 1.50 v) Overhead R.C.C. water reservoirs including deep tube wells pumps 6.00 vi) Internal road, development work etc. 3.50 49.82 C) PLANT AND MACHINERY I) Tablet section 23.12 ii) Liquid and oral section 12.02 iii) Ointment section 2.22 iv) Capsules section 1.70 Total 39.06 Add: S.T. Insurance, Freight Charges, packigng and (URL removed)y @ 12% 4.69 43.75 D) OTHER FIXEED ASSETS I)Scientific Instruments 6.15 ii) Books and Peeriodicals 0.65 iii) Other accessories 0.97 iv) Quality Control Equipments 2.02 v) Blocks, Dies and Cylinder 2.28 12.07 E) INSTALLATION AND ELECTRICALS I) Electrical Equipments 2.34 ii) Generator(50 KVA) 7.15 A.C. & other utilities iii) Security deposit to SEB 5.00 iv) Cost of installation 3.00 17.49 F) FURNITURE & FIXTURES 3.29 G) PRELIMINARY AND PREOPERATIVES 12 H) CONTINGENCIES @ 3% ON NON-FIRM COST 3.79 Total 144.91 ALLOCATION OF CONTINGENCIES UNDER DIFFERENT FIXED ASSETS (URL removed)., Particulars Cost Contingencies @ 3% Total Cost 1) Factory and other construction 49.82 1.49 51.31 2) Platnt and machineries 43.75 1.31 45.06 3) Other fixed assets including Electrification 32.85 0.99 33.84 and installation & Fuurniture and fixture Total 126.42 3.79 130.21 DETAILS OF PRE & PREOPERATIVE EXPENSES 1) Papers, documentation, legal fees and contingency fees 3.00 lakhs 2) Initial expenses 0.60 lakhs 3) Interest on loan @ 17.5% 8.00 lakhs for the construction period 4) Other Misc. expenses like travelling, 0.40 lakhs printing, stationery, postage etc. 12.00 lakhs ALLOCATION OF CONTINGENCIES UNDER DIFFERENT FIXED ASSETS (URL removed). Particulars Cost Contingencies @ 3% Total Cost 1) Factory and other construction 49.82 1.49 51.31 2) Platnt and machineries 43.75 1.31 45.06 3) Other fixed assets including Electrification and 32.85 0.99 33.84 installation and furniture and fixture TOTAL…………… 126.42 3.79 130.21 DETAILS OF PRE & PREOPERATIVE EXPENSES: 1) Papers, documentation, legal fees and 3.00 lakhs contingency fees 2) Initial expenses 0.60 lakhs 3) Interest on laon @ 17.5% for the 8.00 lakhs constuction period 4) Other Misc. expenses like travelling, printing, 0.40 lakhs stationery, postage etc. 12.00 lakhs ANNEXURE-I LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification Power Unit Unit Price Amount Manufacturer/ Suppliers Mas Mixter Capacity-50kg 5HP 1 99000.00 99000.00 Cadmach Machinery Co. Drying oven Capacity-24 trays with MS. Trays 24 extra 1HP One & half 58500.00 58500.00 Asoka Enterprise Fluid Bed Dryer 1 158700.00 158700.00 do Multi Mill 3HP 1 85000.00 85000.00 Cadmach Machinery Co. Granulator/Oscillating GNP Model 2HP 1 49500.00 49500.00 do 2G, 16 (URL removed)ary Tablet pubching m/c. Out put 260 to 450/Min 2HP 1 92500.00 92500.00 do Die-punch sets(3 sets) D.S.1/2" Concave 3 sets 60000.00 60000.00 do Tablets coating machine 36" dia 1 83125.00 83215.00 Gansons Ltd Tablets polishing pen 1 11875.00 11875.00 do a) Blister packing machine with one set of change parts PHARMAPACK 150 ch 2 432400.00 Pharmapack/Ashoka Ent. 8 71600.00 572800.00 do b) Right complete set of change parts(additional) ( The above blister pack machine will be used in tablet and capsule products of all range) c) Water cooler-120 litrs/(URL removed) 18 degree C-20 degree C-3 Bar clit deduster Clit deduster 1 44000.00 44000.00 do 1 31000.00 31000.00 do 1 31000.00 31000.00 do Dust extractor unit-150 degree C with nozzle 1 19000.00 19000.00 Cadmach Machinery Co. Dist for tablets and capsule 1 48400.00 48000.00 do Tablet disintrigation measurement apparatus 1 17250.00 17250.00 Addair Dutta & Sons Pireability Test apparatus 1 17250.00 17250.00 do 2312300 Rs.23.12 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Bottle washing machine 4 heads with 24 rinser 1/2 HP, 1 Unit 22,050.00 22,050.00 Ashoka Enterprise Stirrer(Industrial) Drying Oven 3 HP 2 Unit 23085.00 1/2 HP 15870.00 39675.00 do Capacity 24 rays 1 HP, 1 Unit with 24 extra. Trays 58500.00 59500.00 do Snerkler filter 12 bed(Horizontal) 1 H.P. Unit 1 59500.00 59500.00 do Storage Tank ( SS Vat) Capacity 2000 Lts(1 unit) 75900.00 75900.00 do do 1000 lts(2 units) 43000.00 86000.00 do 500 lts( 2 units) 30350.00 60700.00 do 300 lts(2 units) 22750.00 45500.00 do 200 lts(2 units) 17700.00 35400.00 do 100 Lts(2 units) 10750.00 21500.00 do Collied Mill 12" dia water Jacketted 3 HP(1 Unit) 62700.00 62700.00 Cadmach M/c. Co. Inline Liquid ROPP Cap sealing checking gumming machine fully automatic with conveyer Belt(complete set) United Engineering Works a) Semi automatic 2 head vacuum typeModel (V.L.F.4)1/2 HP/3 Phase/AC/440 bottle filling machine % HP(2 Unit) 33050.00 66100.00 do b) Two head volumetric bottle filing M/C.0.7 KW / Phase/440V/AC(2 Unit) 30400.00 60800.00 do c) Two SS. Cyringe for two head volumetric bottle filling machine 0.7 KW/3 phase/440 V/AC(1 unit) 46250.00 46250.00 do Total …………. 740575.00 ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers e) Hand operated Caping m/c 1 unit 16500.00 16500.00 United Engineering Works f) 28" Conveyor with motor reduction gear box and starter 1 unit 92575.00 92575.00 do g) Semi automatic HOPP caping machine with 0.5 HP motor and reduction gear box sturter(Model CM.I) 1 unit 47000.00 47000.00 do h) Semi Automatic inspection table 1 unit 37000.00 37000.00 do I) Semi automatic label gumming and pasting machine and motor 0.5 HP/AC 3 Phase/440V(Model L.C.P.1) 1 49600.00 49600.00 do j) Changeable parts for above machine 1 31050.00 31050.00 do k) Turn Table(unscramble) Model TT-30 1 35700.00 35700.00 do l) Deminerised water treatment plant (I) Capacity-1000 1 tr. Per hour 1 72450.00 72450.00 do 47600.00 47600.00 do ii) Capacity-500 ltr. Per hour 1 31750.00 31750.00 do Total 461225.00 B/f 740575.00 Total …………. 1201800.00 Rs.12.02 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Steam jacketed vat. Capacity-1000 lts 1 unit 45450.00 45450.00 United Engineering Works Autoclave 22" dia x 30" deep power 6 KW 1 unit 30800.00 30800.00 Addiar Dutta & Sons Triple Hollar Mill Size: 100x300 MW with motor 1 HP 440/Volt/3 Phase, 20 KW per hour 1 Unit 59500.00 59500.00 Asoka Enterprise Tube Filling, Sealing and batch printing machine Semi automatic 1 unit 60850.00 60850.00 United Engineering Works Extra for crimping and eoding device 2 Unit 12650.00 25300.00 do Total ……….. 221900.00 Say Rs.2.22 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Cone mixer Capacity 25 kg., 1 HP 2 Unit 42320 84640 Asoka Enterprise Vacuum pump for capsule leak echecking 1/2 HP, 1 Unit 9200 9200 do Capsule fillint machine Capacity-300 holes(Manusal operated) M.F. 30.2 Unit 33195 66390 Pam Machinery Co. Physical Balance 1 Unit 10120 10120 Addair dutta and sons Total 170350 Say Rs.1.70 lakhs STATEMENT OF SCIENTIFIC INSTRUMENT WITH MICROBIOLOGICAL SET UP (URL removed). Name of instrument Specification Unit 1) U.V. Spectro Photometer PC based stable beam UV-VIS spectro photomotor model GS 5702 1 2) Digital PG Meter 1 3) Melting Point apparatus 1500 1 4) Drying Oven(15"x15"x18") 5) Heating mantle-2 litres 550 watts 6) Double cell eletric colourimeter 1 7) Incubator(24"x24"x30") S.S. 1 8) Digital balance(Electronic) 1 9) Table top centrifuge(Electrical) 8x15ml tubes 1 10) Magnetic Stirrer 1 11) Hot air blower 1 12) Ultra violet ceracidal lamp 1 13) Polarimeter for 200mm tubes 1 14) Infrareo moisture balance 1 15) Refrawmeter 1300 to 1700 range 16) Chemical balance 1 17) Vaccum pup-capacity 30 litres/min 1 18) Constant temperature water bath 18"x12"x10" 1 19) Thermostatic water bath 16"x12"x7" 1 20) Simple retary stirrer Speed 4000 R.P.M. 1 21) Hot Plate 18"x12" 1 22) Tulu pump 1 23) 1 KVS Serve voltape stabilizer 1 24) Tect dry 7 sterilising over 12"x12"x14" 25) Auto distillation applicances 8 lit/hour-8 KW ANNEXURE:2(CONTD….) (URL removed). Name of instrument Specification Unit 26) T.L.C. Hit with (URL removed)p 1 27) Flourimeter 1 28) Laminer flow 1 29) Kearl Fisher Titrator 1 30) Deeps apparatus 1 31) Travelling microscope 1 32) Naphellometry 1 33) Vaccum drier 1 34) Vaccum Desicator 1 35) Auto clave 1 36) Muffle farness 1 37) D.T. Measurement apparatus 1 38) (URL removed)surement apparatus 1 Total Cost 6.15 lakhs ANNEXURE:3 STATEMENT OF BOOKS AND PERIODICALS (URL removed). Name Unit 1)` Indian Pharmacopoea(Volume 2) 2 2) British Pharmacopooea(Volume 2) 2 3) US & NF Pharmacopoea 1 4) The Extra Pharmacopoea(Martindale) 2 5) Remington Pharmaceuticals 1 6) Goodman and Gilman(the Pharmaceutical basis of Therapeutics) 1 7) Marckined 1 8) Good Manufacturing practice 1 9) Others Government acts and rules 2 Total 0.65 lakhs ANNEXURE-4: Statement of Other Accessories (URL removed). Specification Qty Rate Amount 1) S.S. Pipe lining for supply of (URL removed)er to different section …. ….. 20,000 2) Wooden platform for raw materials and packing materials stores 2 nos 1000 2000 3) Wooden tabe for quality control department and manufactturing unit For analysis 2 nos 6000 12000 For Instruments 4 nos. 2000 8000 Packaging table 6 nos. 4000 24000 4) Wooden pack for raw materials stores and packing materials stores 8 nos. 2000 16000 5) Pollythene Vat. Capacity-100 litres 20 nos. 250 5000 6) Pollythene bucker, capacity 25 litres 10 nos. 215 2150 7) Pollytthene tray(for bottle) 50 nos. 150 7500 8) Pollythene Balti 10 nos. 30 300 9) Pollythene Mug-Capacity 1 litre 20 nos. 10 200 Total …….. 97150 Say Rs.0.97 lakhs ANNEXURE: 5 STATEMENT OF QUALITY CONTROL ARRANGEMENT:: ANALYTICAL SECTION AMOUNT A) Wooden furniture 30,400 B) Electrical equipments 14,500 C) Other than eloetrical equipments 21000 D) Other common laboratory 17730 E) Glass apparatus 59940 F) Analytical reagents 58000 Total 201570 Say Rs.2.02 lakhs ANNEXURE: 6 STATEMENT OF BLOCKS, DIES AND CYLINDER Sl. No. Description Qty Rate Amount 1) Zinc blocks for samples catch cover 14 1500 21000 2) Zinc blocks for samples catch cover 11 2000 22000 3) Zinc blocks for labels 11 800 8800 4) Zinc blocks for labels 14 1200 16800 5) Metal cylinder for stripping materials/poly paper or Aluminium foils 14 8000 1,12,000 6) Blocks for tubes of ointment in different sizes 5 2500 12500 7) Die-punch storage trays(18 gauge) 10 2500 25000 8) Bottle mould 2 sets 5000 10000 228100 Say Rs.2.28 lakhs ANNEXURE: 7 STATEMENT OF ELECTRICAL EQUIPMENTS: Description Specification Rate Quantity Amount Exhaust fan 16" dia, 20 nos. 1500 30,000.00 Fan/Ceiling 48" length 40 nos. 800 32000 Wall/Bracket fan 16" dia, 10 nos. 800 8000 Padestal fan Big size 4 nos. 4100 16400 Industrial tube sittings 1 set 50 nos. 550 27500 Capacitor 1 no. 20000 20000 Other electrical equipments with complete wiring) factory, office, godown etc. L.S. 100000 Total ……….. 233900 Say Rs.2.34 lakhs ANNEXURE:8 STATEMENT OF UTILITIES: Name of utilities Specification, Quantiy Unit Price Amount Airconditioner Capacity 1 ton 10 nos 25000 250000 Debmudifer 2 nos. 46000 92000 Refrigerator Capacity 165 ltr. 2nos. 9000 18000 Generator set Capacity 50 KVA 1 no. (Phone # removed)00 FIRE FIGHTING ARRANGEMENTS: FIRE EXTINGUISHER Chemical vapour type 10 nos. 800 8000 Fire fighting bucker 10 nos. 200 2000 Washing Balance(Avery) Capacity 50 kgs 1 no. 48000 48000 Washing Balance(Avery) Capacity-10 KG 1 no. 22000 22000 Troller((URL removed)ting) 2 nos. 6000 12000 Gear pump Capacity 1 no. 1/2 HP 5100 5100 Total 715100 Say: Rs.7.15 lakhs ANNEXURE-9: STATEMENT OF FURNITURE AND FIXTURE Name of articles and specification Quantity reqd. Rate/Unit Amount Table-Secretariate type(full) 20 3000 60000 Table-Secretariate type(Half) 40 2000 80000 Chair-Special type 20 nos. 800 16000 Chair-Special type 40 nos. 600 24000 Chair-Special steel(with arms) 150 nos. 300 45000 Chair-Steel Chair(without arms) 50 nos. 220 11000 Almirah-Steel Office type 20 nos. 2000 40000 File cabinet-Steel(Office use) 4 nos. 4000 16000 Wooden tools 10 nos. 200 2000 Type writer 4 nos. 8000 32000 Calculator 10 nos. 300 3000 Total………. 329000 Say: Rs. 3.29 lakhs CHAPTER-III RECURRING EXPENSES: I) COST OF RAW MATERIALS: Products name` Name of raw materials Unit rate Monthly requirements Cost Hilcer suspension in 170 ML bottle D.G.L.I.P. 400X523 kg 2.09 Dimethyle polysiloxane 400x27kg 0.11 I.P. dried aluminium hydroxide 50x880kg 0.44 Gel I.P Magnesium Hydrooxide B.P. 45x880kg 0.4 Hilcer plus susp. 120 ML bottle G.G.L>I % P 400x175kg 0.7 Andys suspension 50 ML bottle Metronidazole benzeati P 77x110kg 0.77 Furazolidone IP 750x44 kg 0.33 Diloxanide Furoate IP 650x110kg 0.72 Neufen plus suspension 50ml bottle Paracetamol IP 189x18kg 0.03 Nualka syrup 100ml bottle Disodium hydrogen citrate IP 100x440kg 0.44 Cramolytic syrup 200 bottle Rungal diastase(1:1200) 1000x44 kg 0.44 Pepsin(1:13000) 1080x44kg 0.48 Weak ginger BP 1000x4.5kg 0.05 Conc. Cinnamol water DP 1200x4.5kg 0.05 Ajowan Oil IP 2500x4.5kg 0.11 Comp. Cardamon 800x4.5kg 0.04 Papf plus syrup 180 ML Bottle Cyproheptadine hydrochloride U.S.P. 26000x9 kg 2.34 Tricholine citrate 100 x17.76 kg 1.78 Llysin monohydrocloride IP 265x440kg 1.17 Thaimine hydrocloride IP 3000x6.5kg 0.2 Riboflavine IP 4500x6.5kg 0.29 Pyridoxine Hydrocloride 4000x4.5kg 0.18 13.16 Products name Name of raw materials Unit rate Monthly reqd. Cost Papf plus drop Cyprophepatadine Hydro Chloride IP 26600x2.2kg 0.59 Llysis Monohydrochloride USP 265x44 kg 0.12 Tricholine citrate 100x176kg 0.18 Thiamine Hydrochloride I.P. 3000x4.5kg Ribiflavine IP 4500x4.5kg 0.01 Pyrodoxine Hydrochloride IP 4000x4.5kg Green lit syrup Tricholine cittrate 100x1760kg 1.76 Kalamegh liquid extract B.P.C.886 600x22kg 0.13 Thiamine Hydrochloride IP 3000x6.5kg 0.2 Riboflavine IP 4500x6.5kg 0.29 Pyrodoxine Hydrochloride IP 4500x4.5kg 0.2 Green Liv drops Kalamegh liquid extract IP 66 6600x4.5kg 0.3 Tricholine citrate 100x176kg 0.18 Thaimine Hydrochloride IP 3300x440gm Riboflavine IP 4500x440 gm Pyridoxine HCL IP 4000x440gm 0.05 4.01 B/f 13.16 17.17 c/o Product name Name of raw materials Unit rate Month reqd. Cost Protchem syrup None tronic feric ammonium citrate 200x88kg 0.18 Casein Hydrolsate 20% 210x440kg 0.92 L-Lysis monohydrochloride USP 265x35 kg 0.09 Pyridoxine Hydrochloride IP 4000x1.1kg 0.04 Folic Acid 5000x450kg 0.02 Zinc sulphate 100x9kg 0.02 Calcium Gluconate 200x9kg 0.02 Vitamin D3 2000x220 IU 0.01 Vitamin B12 3000x220gm 0.01 Liv Long syrup 200 ML bottle Trichline citrate 100x308kg 0.31 Sodium Taurodycocholate BPC 300x200kg 0.07 (URL removed)hionine 300x5 kg 0.02 Vitamin BI IP 3000x1.1kg 0.03 Vitamin B2 IP 4500x1.1kg 0.05 Vitamin B12 IP 3000x50kg Kalamegh IP '66 600x4.5kg 0.03 93883535 kgs 19.02 MONTHLY REQUIREMENT ANNUAL REQUIREMENT 112.66 MT 228.24 ADD: PROCESS LOSS @ 5% 5.63 mt 11.41 118.29 MT 239.65 Add: Packing, forwarding and transportation charges etc. @ 3% 7.19 TOTAL ANNUAL COST 246.84 B) FOR TABLETS Products name Name of the raw materials Unit rate Monthly reqd. Cost Neufen plus tablet Ibuprofen IP 600x225 kg 1.35 Paracetamol IP 180x225 kg 0.41 Ceffein Aunydrops IP 600x15kg 0.09 Diloxanide Furate tablet Diloxanide Furoate 650x150kg 0.98 Metronidazole 200 MG TABS Metronidazole IP 680x125kg 0.85 Almole tablet Paracetamol IP 180x250kg 0.45 Ibuprofen 200mg tablet Ibuprofen IP 600x100mg 0.6 Papf plus tablet Cyprohepadins FCL USP 2600x25kg 0.65 Chloline bitrate 600x5kg 0.03 L-Lysine monohydrochloride 265x62.5kg 0.17 Vitamine bl IP 3000x500gm 0.02 Vitamine B/6 IP 4000x500gm 0.02 Vitamine B/2 IP 4000x500gm 0.02 Bone Cal Tablet Calcium Carbonate IP 95x500gm 0.48 Vitamine D/3 3000x25gm Timed Tablet Tetracycline HCL IP 1600X175KG 2.8 Metronidazole IP 689x225kg 1.55 Green Liv tablet Cholin bittrate 600x25kg 0.15 Bile Salt BPC '54 200x25kg 0.05 D-L-Methiopnine 300x1.25kg Vitamin B/12 IP 3000x25kg Vitamin B/1 3000x500kg 0.02 Vitamine B/6 IP 4000x500kg 0.02 Vitamine B/2 IP 4000x500kg 0.02 Timed IV Tablet Metronidazole IP 68x125kg 0.09 Tetracycline HCL IP 1600x75kg 1.2 Dilomanide Furoate IP 600x125kg 0.75 MONTHLY REQUIREMENT 24370250KG 12.77 ANNUAL REQUIREMENT 29.24 mt 153.24 Add: Process Loss @ 5% 1.46 MT 7.66 TOTAL 30.7 160.9 Add: Packing, forwarding and transportation etc. @ 3% 4.83 TOTAL ANNUAL COST 165.73 C) FOR CAPSULES Products name Name of raw materials Unit rate Monthly reqd Cost Alnadex capsules 0 3500 1.2kg 0.04 Vitamin B/2 3000 1.2kg 0.04 Nicotinamide 400 12kg 0.05 Cal-Panthonat 400 6kg 0.02 Vitamin B/6 2500 0.36kg 0.01 Vitamin B/12 300 0.18gm Folic Acid 300 1.8kg 0.01 Vitamin C 800 18kg 0.14 Lactobacilins 460 48kg 0.22 Zince Sulphate 115 6kg 0.01 Starch 10% 10 4.8kg Tale 1% 30 4.8kg 0.01 Magnesium Stcarate 30 0.48kg 50 0.48kg Almox capsules(500) Amoxicillin 3500 30kg 1.05 Lactose 10% 30 3kg Starih 10% 10 3kg Magnesium Stcarate 1% 50 0.3 0.01 Tale 1% 30 0.3 Almox 250 Amoxicillin 3500 30kg 1.05 Lactose 10% 30 3kg Starih 10% 10 3kg 0.01 Magnesium Stcarate 1% 50 0.30kg Tale 1% 30 0.3 Lactotetra 500 Tefracy Cline hcl 1625 60kg 0.98 Lactobacilli 460 4.8kg 0.02 Lactose 10% 30 6kg Starch 10% 10 6kg Talc 1% 30 0.60kg Magnasium Stearate 50 0.60kg 0.01 3.68 Products name Name of raw materials Unit rate Monthly reqd. Cost Prutohen cap Ferrous Finatate 250 2.4kg 0.07 Vitamin B/2 3000 0.30kg 0.01 Vitamin B/12 300 0.90kg Vitamin B/6 3000 0.18kg 0.08 Vitamin C 800 9kg Folic acid 300 9kg 0.03 Lilysim mono HCL 525 6kg 0.03 Dioclyi Sodium sulpho Snceinate 260 3kg Starch 10% 10 5.2kg 0.01 Lactose 10% 30 5.2 Magnesium Sterate 1% 50 0.52 Tale 1% 30 0.52 0.23 B/f 3.68 MONTHLY REQUIREMENT 2934630kg 3.61 ANNUAL REQUIREMENT 35.22 MT 45.72 ADD: PROCESS LOSS @ 5% 1.76 2.29 TOTAL 36.98MT 48.01 Add: PACKING, FORWARDING, TRANSPORT ETC .@ 3% 1.44 TOTAL ANNUAL COST 49.45 D) FOR OINTMENT Product name Name of the raw materials Unit rate Monthly reqd. Cost Stanan Cream Cotrimazole 2600 0.30kg 0.01 Betname Thatone 4500 15kg 0.07 Genetamycin 4500 30kg 0.14 Propyline Glycol 450 10 0.04 Cream 400 10 0.04 Other inactive ingredient xx XX 0.01 Burnex Ointment Kitrofurazone 750 240GM 0.18 Silver Sulphadine Giluconate 10 240gm 0.02 Propyline Gllyeol 400 20kg 0.08 Cream Lanocim 200 20kg 0.04 Bactosprim Ointment Polymixine B Sulphate 450 15kg 0.07 Zine baeitracin 200 0.12kg 0.05 Prophline Glycol 450 10kg Newmycin Sulphate 300 10.2kg 0.03 Cream base 200 10kg 0.02 Ascoi Ointment Gama benzine mexachiorid 800 3kg 0.02 Cetrimide 600 7.5kg 0.02 Providine Iodine 200 7.5kg 0.02 Meclop Veginale Ointment Matronidavole 660 0.12kg 0.02 Clotrimazole 2600 0.6kg Povidine Iodine 200 15kg 0.03 Propyline Glycol 450 10kg 0.05 Cream base and other inactive ingredient 200 10kg 0.02 Monthly requirements 75.934kg 1.17 ANNAUL REQUIREMENT 9.11KG 14.04 ADD: PROCESS LOSS @5% 0.46KG 0.7 TOTAL 9.57KG 14.74 ADD: PARKING, FORWARDING TRANSPORT @ 3% 0.44 TOTAL ANNUAL COST 15.18 TOTAL COST OF THE RAW MATERIALS (P.A.) (AT 100% CAPACITY UTILISATION) (Rs. in lakhs) TOTAL OF GROUP A 246.84 TOTAL OF GROUP B 165.73 TOTAL OF GROUP C 49.45 TOTAL OF GROUP D 15.18 TOTAL 477.2 1ST YEAR @ 40% CAP 190.88 2ND YEAR @ 50% CAP 238.6 3RD YEAR @ 60% CAP 286.32 4TH YEAR @ 70% CAP 334.04 ii) ANNAUL REQUIREMENT AND COST OF PACKING MATERIALS (AT 100% CAPACITY UTILISATION) Name of the packing materials Monthly reqd Average rate Monthly cost A) FOR ORAL LIQUID BOTTLE 530 2.25 11.93 P.P. CAPS 530 0.25 1.33 CARTOON 352 1 3.52 LABEL 575 0.2 1.15 CORRUGATED BOX 18 17 3.06 OTHER PACKING MATERIALS XX XX 0.1 TOTAL 21.09 B) FOR TABLET STRIPS ALUMINIUM FOIL 300kg 150/kg 0.45 POLLY PAPERS 400kg 80/kg 0.32 02) PRINTED PLASTIC CONTAINER a) Container of 30 tabls 25500 nos. 3 0.77 b) Container of 500 tabls 1530 nos. 8 0.12 03) Cartoons 15200 nos. 1 0.15 TOTAL 1.81 Monthly reqd Average rate Monthly cost G) FOR CAPSULE EMPTY GELATIN CAPS 216000 PCS 80.00 1000 pcs 0.17 ALUMINIUM FOILS 135kg 150kg 0.2 BOX OF 100'S CAPS 600 pcs 3.00 pcs 0.02 BOX OF 20'S CAPS 1500 box 1.00 pcs 6000 box 0.50 pc BOX OF 30'S CAPS 2000 box .50 pc 0.05 GUM ADHESIVE ETC. L.S. 0.01 TOTAL….. 0.46 D) FOR OINTMENT TUBES OF 5 GM 10500 .40/PC 0.042 TUBES OF 25 GM 3000 .60/PC 0.018 TUBES OF 10GM 9000 .60/PC 0.054 CARTOON OF 5GM TUBES 10500 .40/PC 0.042 CARTTON OF 10GM TUBES 9000 .60/PC 0.054 CARTOON OF 25GM TUBES 3000 .60/PC 0.018 OUTER CARTOON OF 50'S 360 1.00/PC 0.004 TOTAL 0.232 TOTAL MONTHLY COST OF PACKING MATERIALS 23.59 Total annual cost of packigng materials at 100% Capacity 283.08 SO, at 40% cap(1st yyear) 113.23 50% cap(2nd year) 141.54 60% cap(3rd year) 169.85 70% cap(4th onwards) 198.16 III) STATEMENT OF SALARY AND WAGES IN TOTAL (URL removed). Particulars Nos. of Heads Amount 1) Office Staff 16 327600 2) Sales and Marketing Staff 49 919800 3) Administrative Staff 3 163800 4) Distribution Staff 6 84420 5) Factory staff 40 665280 6) Labortory(Workshop) Staff 9 352(Phone # removed)700 Say Rs.25.14 lakhs N.B. There will be an opening for 123 heads in the 1st year and cost for Salary and wages will be Rs.25.14 lakh. A provision for 5% increase has been considered from 3rd year and+A649 onwards. Statement of Salary of Office Staffs NOS PAY SCALE AMOUNT ACCOUNTS OFFICER 1 4000 4000 ACCOUNTANT 1 2000 2000 ACCOUNTS CLERK 4 1500 6000 OFFICE ASSISTANT 4 1500 6000 STENOGRAPHER 1 1800 1800 RECEPTIONIST 1 1500 1500 TYPIST/CLERK 2 1500 3000 OFFICE PEON 2 850 1700 TOTAL 16 26000 YYEARLY(Rs.26,000x12) 312000 Fringe benefit-5% 15600 Total 327600 STATEMENT OF SALARY OF MARKETING AND SALES STAFFS NOS PAY SCALE AMOUNT MARKETING MANAGER 1 6000 6000 REGIONAL SALES MANAGER 2 4500 9000 AREA MANAGER 6 3000 18000 PROFESSIONAL SERVI CE REPRESENTATIVE 40 1000 40000 TOTAL 49 73000 YEARLY(Rs.73000x12) 8,76,000.00 Add: EARING BENEFIT 43,800.00 TOTAL 9,19,800.00 STATEMENT OF SALARY OF ADMINISTRATIVE STAFFS NOS PAY SCALE AMOUNT ADMINISTRATIVE OFFICE 1 6000 6000 SECRETARY 1 4000 4000 PURCHASE OFFICER 1 3000 3000 TOTAL……. 3 13000 YEARLY(Rs.13000x12) 1,56,000.00 Fringe Benefits-5% 7,800.00 TOTAL 1,63,800.00 STATEMENT OF SALARY OF DISTRIBUTION STAFFS 1) STORE IN CHARGE 1 2000 2000 2) DELIVERY VAN DRIVER 1 1500 1500 3) DELIVERY VAN HELPER 1 1000 1000 4) DELIVERY MAN 1 800 800 5) HELPER 2 700 1400 TOTAL 6 6700 YEARLY(RS.6700X12) 80,400.00 FRINGE BENEFIT-5% 4,020.00 TOTAL 84,420.00 STATEMENT OF WAGES OF FACTORY STAFF NOS PAY SCALE AMOUNT 1) MACHINE OPERATOR 6 2000.00 12000.00 2) SKILLED WORKMEN 8 1400.00 11200.00 3) SEMI SKILLED WORKMEN 8 1500.00 12000.00 4) UNSKILLED WORKMEN 10 900.00 9000.00 5) SWEEPER 2 800.00 1600.00 6) ELECTRICIAN 2 1200.00 2400.00 7) HELPER 2 800.00 1600.00 8) SECURITY 2 1500.00 3000.00 TOTAL 40 52800.00 YYEARLY(RS.52,800.00X12) 6,33,600.00 FRINGE BENEFIT-5% 31,680.00 TOTAL 6,665,280.00 STATEMENT OF SALARY OF LABORATORY(FACTORY) STAFFS NOS PAY SCALE AMOUNT 1) PRODUCTION MANAGER/CHIEF CHEMIST 1 6000.00 6000 2) QUALITY CONTROL CHEMIST 1 5000.00 5000 3)MANUFACUTURING CHEMIST 1 5000.00 5000 4) ASST. CHEMIST 2 3000.00 6000 5) LABORATORY ASST 4 1500.00 6000 TOTAL 9 28000 YEARLY(RS.28,000X12) 3,36,000.00 FRINGE BENEFIT-5% 16,800.00 TOTAL 3,52,800.00 IV) REQUIREMENT AND COST OF POWER (URL removed). NAME OF THE EQUIPMENT H.P. 1) AUTOMATIC ROTARY TABLETING MACHINE 3 2) COLLOID MILL 2 3) FILTRATION UNIT 0.5 4) TABLET COATING AND POLISHING PAN 1 5) TABLET DRYER 1 6) AUTOMATIC STRIPING MACHINE 1 7) VACUMETRIC BOTTLE FILLING 0.05 8) CAP SEALING MACHINE 0.5 9) AUTOMATIC LABEL CUMING AND PASTING MACHINE 0.05 10) (URL removed)T CHAIN CONVEYOR BELT 0.5 11) HORIZONTALTYPE MASS MIXTURE 5 12) STIRRER 2 13) CAVINET DYRE FOR BOTTLE DRYING 1 14) WATER PUMP, GENERATING AND LIGHTING ETC 5.5 15) SEMI AUTOMATIC BOTTLE WASHING AND BRUSHING MACHINE 0.5 16) OTHER MISC. MACHINERIES 1 25 HP APPROX 18 KW COST OF THE POWER 2.00(AT 100% capacity utilisatilon) 18.00x8x300x1.50 = Rs.86,400.00 Say Rs.0.86 lakhs (ANY EXCESS POWER REQUIRE FOR THE PROJECT WILL BE TAKEN CARE BY THE COMPANY AS THE NEED OF THE PROPOSED PROJECT) 1ST YEAR @ 40% Cap. Afilisation 0.35 lakhs 2nd Year @ 50% Cap. Afilisation 0.43 lakhs 3rd year @ 60% Cap. Afilisation 0.52 lakhs 4th and onwardes @ 70% Cap. Afilisation 0.60 lakhs V) ADMINISTRATIVE EXPENSES ITEMS (RS. IN LAKHS) 1) INSURANCE OF FIXED ASSETS 0.25 2) POSTAGES AND TELEPHONE 0.25 3) AUDIT FEES AND LEGAL EXPENSES 0.1 4) CONVEYANCE 0.25 5) STATIONERY 0.15 6) MISC, EXPENSES 0.12 TOTAL 1.12 Lakh(on 1st year) VI) SALES AND MARKETING EXPENSES 1) TRAVELLING EXPENSES FOR SALE PERSONNEL@ 3% ON SALES. 2) MARKETING AND SELLING EXPENSES @ 2% ON SALES 3) SALES PROMOTIONAL EXPENSES @ 5% ON SALES 4) DISTRIBUTION EXPENSES @ 3% ON SALES TOTAL 13% ON NET SALES VALUE PER YEAR TOTAL RECURRING EXPENSES(PER MONTH) (Rs. in lakhs) Particulars 1st year 2nd year 3rd year 4th year CAPACITY UTILISATION 40% 50% 60% 70% RAW MATERIALS 15.91 19.88 23.86 27.84 PACKING MATERIALS 9.44 11.80 14.15 16.51 SALARY AND WAGES 2.10 2.10 2.20 2.31 POWER 0.30 0.40 0.05 0.05 REPAIR AND MAINTENANCE 0.15 0.16 0.18 0.20 CONSUMABLES 0.15 0.16 0.18 0.20 TOTAL 27.78 34.14 40.62 47.11 CHAPTER-IV COST OF PROJECT AND MEANS OF FINANCE (RS. IN LAKHS) A) TOTAL CAPITAL OUTLAY 1) LAND AND BUILDING 52.52 2) PLANT AND MACHINERY 53.75 3) OTHER FIXED ASSETS 12.07 4) INSTALLATION AND ELECTRIFICATION 17.49 5) FURNITURE AND FIXTURES 3.29 6) PRELIMINARY AND PREOPERATIVES 12 7) CONTINGENCIES 3.79 8) MARGIN MONEY FOR WORKING CAPITAL 17.88 162.79 9) BANK BORROWING FOR WORKING CAPITAL 53.6 10) CAPITAL OUTLAY 216.39 B) MEANS OF FINANCE 1) SHARE CAPITAL 25 2) TERM LOAN (4.67% OF PROJECT COST) 1009 3) UNSECURED LOAN 28.79 4) BANK FINANCE @ 75% OF WORKING CAPITAL 53.6 TOTAL 216.39 CHAPTER-V FINANCIAL IMPLICATIONS: This capter gives the financial projection regarding sales realisation, profitability statement, computation of working capital and computation of interest, taxation, cash flow, statement, and balance sheet, nreak even point, debt service coverage ration and pay back period have also been worked out in details to show in the financial viability of the project. PROJECT COST AND MEANS OF FINANCE The project is estimated to cost Rs.1662.79 lakhs including margin money for working capital of Rs.17.88 lakhs. The amount is proposed to be financed as under: 1) SHARE CAPITAL 25.00 LAKHS 2) TERM LOAN 109.00 LAKHS 3) UNSECURED LOAN 28.79 LAKHS 162.79 LAKHS SHARE CAPITAL: The promoters capital of Rs.25.00 lakhs will be contributed by the entrepreneurs themselves by issuing shares. TERM LOAN The term loan of Rs.109.00 lakhs is proposed to be obtained from Industrial Development Bank of India. The loan is proposed to be repaid in 6 years by 11 half yearly instalment which will be commenced from the after 1 year Moratorium I.e. at the end of 1st operating year. The loan will bear an interest @ 17.5% annum. COMPUTATION OF WORKING CAPITAL: Details computation of working capital requirement made in appendix 5.1 bank finance has been considered to bew 75% of the total Investment towards working capital while considering the same Provision for one month stock of raw materials one week work-in-process, 3 weeks stock of finished goods and 30 days receivable(at cost) has been kept). BALANCE SHEET: Project Balance Sheet for 7 years has been computedn in appendix 5.8 BREAK-EVEN POINT: Break-even point calculation for 3 year at maximum capacity utilisation has been computed in Appendix 5.9 DEBT SERVICE COVER AGE RATIO: D.S.C.R. has been calculated in appendix 5.6 INTEREST: Interest on term loan working capital has been shown in Appendix 5.4 COMPUTATION OF WORKING CAPITAL Particulars Basis Bank Finance 1st year at 40% cap. Utilisation 2nd year at 50% cap. Utilisation 3rd year at 60% cap. Utilisation 4th year at 70% cap. Utilisation Total amount Bank finance Margin money Total amount Bank finance Margin money Total amount Bank finance Margin money Total amount Bank finance Margin money Raw and packing 1 month 75% 15.91 11.93 3.98 19.88 14.91 4.97 23.86 17.89 5.97 27.84 20.88 6.96 materials work-in-process 1 week 75% 6.95 5.21 1.74 8.54 6.4 2.14 10.16 7.62 2.54 11.78 8.83 2.95 finished goods 3 weeks 75% 20.84 15.63 5.21 25.61 19.21 6.4 30.47 22.85 7.62 35.33 26.5 8.83 Receivables(at cost) 1 month 75% 27.78 20.83 6.95 34.14 25.6 8.54 40.62 30.16 10.16 47.11 35.33 11.78 71.48 53.6 17.88 88.17 66.12 22.05 105.11 78.82 26.29 122.06 91.54 30.52 DEPRECIATION CALCULATION IN W.D.V. METHOD YEAR BUILD COST @ 5% p.a. Plant & M/C @ 10% p.a. Other Assets @ 15% p.a. Total FIRST YEAR Purchase during the year 51.31 45.06 33.84 130.21 Depreciation 2.57 4.51 5.08 12.16 Second Year: Opening Balance 48.74 40.55 38.76 128.05 Depreciation 2.44 4.06 4.31 10.81 THIRD YEAR Opening Balance 46.3 36.49 24.45 107.24 Depreciation 2.32 3.65 3.67 9.64 FOURTH YEAR Opening Balance 43.98 32.84 20.78 97.6 Depreciation 2.2 3.28 3.12 8.6 FIFTH YEAR: Opening Balance 41.48 29.56 17.66 88.7 Depreciation 2.09 2.96 2.65 7.7 SIXTH YEAR: Opening Balance 39.69 26.6 15.01 81.3 Depreciation 1.98 2.66 2.25 6.89 APPENDIX:5.3 ESTIMATED SALES: The sale figures of the proposed production at 100% capacity utilisation per annum has been calculated as follows:- BY SALE OF AMOUNTS(RS. IN LAKHS) LIQUIDS 734.04 TABLETS 290.28 CAPSULES 116.16 OINTMENTS 61.32 1201.8 ADD: EXCISE DUTY @ 15% 180.27 TOTAL 1382.07 Hence, the sale value of the finished products in different years as per capacity utilisation are as follows:- YEAR CAPACITY UTILISATION TOTAL AMOUNT P.A. 1ST YEAR 40% 552.83 2ND YEAR 50% 691.04 3RD YEAR 60% 829.24 4TH AND ONWARDS 70% 967.45 ESTIMATES OF PRODUCTION AND SALES (At 100% capacity utilisation) (URL removed). PRODUCT MONTHLY PRODUCTION UNIT SELLING RATE(TRADE PRICE) (RS) MONTHLY AMOUNT TOTAL ANNUAL AMOUNT A) ORAL LIQUIDS 1) Hilcher Suspension 52800 bottles 13.75 per bottle 7.26 2) Hilcer plus Suspension 26400 11 2.9 3) Andhya Suspension 22000 14.3 3.15 4) Neufen plus Suspension 22000 14.3 3.15 5) Naulk Syrup 22000 9 1.98 6) Carmolytie Syrup 44000 23.9 10.52 7) Pap plus syrup 88000 27.5 24.2 8) Pap plus drop 22000 12.9 2.84 9) Green liv syrup 88000 25.3 22.26 10) Green liv drops 22000 12 2.64 11) Protohem Syrup 44000 25.8 11.35 12) Live long syrup 22000 22.5 5.61 TOTAL 475200 Less: Physicians sample 9500 bottles 19.57 a) @ 20% b) Breakage wastage, leakage, expiry @ 5% 23760 4.89 356400 bottles 73.4 NET SALES REALISATION (AFTER 20% TRADE DISCOUNT) B) TABLETS 61.17 734.04 1) Neufen plus tablet 5 lacs nos. 105/100 tab 5.25 2) Metronidazole Tablets 2.5 lacs 80/500 tab 0.4 3) Diloxanide furo 2.5 lacs 50/100 tab 1.25 4) Almole tablets 2.5 lacs 95/500 tab 0.48 5) Ibuprofen 200mg tablets 2.5 lacs 80/500 tab 0.4 6) Papf. Plus tablet 2.5 lacs 5/30 tab 1.25 7) Green Liv tablet 2.5 lacs 30/30 tab 2.5 8) Bone cal tablet 2.5 lacs 32/30 tab 2.67 9) Timed tablet 5.0 lacs 305/100 tab 15.25 10) Timed IV 2.5 lacs 330/100 tab 8.25 TOTAL 30.0 LAKHS NOS. 37.7 452.4 LESS: Physicians sample a) @ 20% 6.00 lakhs nos. 7.54 b) Breakage, wastage, expiry etc.@ 3% 0.9 lakhs nos. 1.13 23.10- lakhs nos. 29.03 MONTHLY AMOUNT TOTAL ANNUAL AMOUNT NET SALES REALISATION (After 20% Trade Discount) 24.19 290.28 C) CAPSULES 1) Allendex 12000 unit(1 unit = 10 caps) 19.2 2.3 2) Almox 500 6000 units 39 2.34 3) Almox 250 12000 units 26 3.12 4) Lactotetra 12000 unit 21 2.52 5) Protohem 12000 unit 15 1.8 TOTAL: 54000 UNIT 12.08 Less: a) Physician sample @ 15% - 8100 unit 1.8 10.28 b) Breakage, wastage, leakage, expiry @ 5% =2700 0.6 9.68 LAKHS TOTAL So, yearly sale at 100% capacity = 116.166 lakhs D) OINTMENTS: 1) Brunax 12000 unit 18.00 2.16 2) Bactosprim 6000 units 14.00 0.84 3) Asebi 6000 units 22.50 1.35 4) Maelop(veginale) 6000 units 17.00 1.02 5) Stanan cream 6000 units 17.00 1.02 TOTAL 36000 UNITS 6.39 Less: a) Physican sample @ 15% = 5400 unit 0.96 5.43 b) Breakage, wastage, leakages expiry @ 5% = 18700 units 0.32 TOTAL 5.11 lakhs So, yearly sale at 100% capacity = 61.332 lakhs COMPUTATION OF INTEREST AND REPAYMENT SCHEDULE A)TERM LOAN YEAR HALF OPENING BALANCE REPAYMENT CLOSING BALANCE INTEREST @ 17.5% PER ANNUM 1st 1st 109 ….. 109 9.54 2nd 109 9 100 9.54 19.08 2nd 1st 100 10 90 8.75 2nd 90 10 80 7.88 16.63 3rd 1st 80 10 70 7 2nd 70 10 60 6.13 13.13 4th 1st 60 10 50 5.25 2nd 50 10 40 4.38 9.63 5th 1st 40 10 30 3.5 2nd 30 10 20 2.63 6.13 6th 1st 20 10 10 1.75 2nd 10 10 nil 0.88 2.63 B) WORKING CAPITAL LOAN: Rs.53.60 lakhs interest @ 18% p.a. = Rs.9.65 lakhs per year C) TOTAL INTEREST YEAR INTEREST ON TERM LAON INTEREST ON WORKING CAPITAL LAON TOTAL AMOUNT 1ST 19.08 9.65 28.73 2ND 16.63 9.65 26.28 3RD 13.13 9.65 22.78 4TH 9.63 9.65 19.28 5TH 6.13 9.65 15.78 6TH 2.63 9.65 12.28 PROJECTED PROFITABILITY STATEMENT PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Capacity utilisation 40% 50% 60% 70% 70% 70% A) Gross Sales 552.83 691.04 829.24 967.45 967.45 967.45 Less: Ex-duty 71.87 89.84 107.8 125.77 125.77 125.77 Net Sales 480.96 601.2 721.44 841.68 841.68 841.68 B) Cost of Sales I) Raw materials 190.88 238.6 286.32 334.04 334.04 334.04 ii) Packing materials 113.23 141.54 169.85 198.16 198.16 198.16 iii) Consumable stores 1.8 1.98 2.18 2.4 2.4 2.4 iv) Power and fuel 0.36 0.42 0.5 0.59 0.59 0.59 v) Repair and maintenance 1.8 1.98 2.18 2.4 2.4 2.4 vi) Salary and Wages 25.14 25.14 26.4 27.72 29.11 30.56 vii) Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 TOOTAL(B) 345.47 420.47 497.07 573.91 574.4 575.01 C) Gross Profit(A-B) 135.59 180.73 224.37 267.77 267.28 266.64 D) Sales & Marketing Exp 62.52 78.16 93.79 109.42 109.42 109.42 E) Administrative Exp. 1.12 1.23 1.35 1.49 1.49 1.49 F) Deferred exp written off 3 3 3 3 - - G) Profit before interest 68.95 98.34 126.23 153.86 156.37 155.73 H) Interest payable 28.73 26.28 22.78 19.28 15.78 12.28 PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Operating Profit 40.22 72.06 103.45 134.58 140.59 143.45 Tax provision 16.00 29.00 41.00 54.00 56 57 40% approx Director's Remuneration 0.96 0.96 1.2 1.44 1.8 2.4 Net Profit 23.26 42.1 61.25 79.14 82.79 84.05 Add: Back Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 Cash Accruals 35.42 52.91 70.89 87.74 90.49 90.94 Repayment 9.00 20.00 20.00 20.00 20.00 20.00 DEBT SERVICE COVERAGE RATIO(D.S.C.R.) PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR A) Debt Servicing fund Cash accruals 428.49 35.42 52.91 87.74 90.59 90.94 Interest on Term Loan 67.23 19.08 16.63 9.63 6.13 2.63 TOTAL 495.72 54.5 69.54 97.37 96.72 93.57 B) DEBTS Repayment on term loan 109 9 20 20 20 20 Payment of interest on 67.23 19.08 16.63 9.63 6.13 2.63 Term laon TOTAL 176.23 28.08 36.63 29.63 26.13 22.63 C) D.S.C.R.(A/B) 2.81:1 1.94:1 1.9:1 3.29:1 3.7:1 4.13:1 PROJECTED CASH FLOW STATEMENT: A) Inflow Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 1) Share Capital 25 - - - - - - 2) Unsecured loan 28.79 - - - - - - 3) Term laon 109 - - - - - - 4) Increase in Working 53.6 Capital Loan 5) Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 6) Deferred exp. 3.00 3.00 3.00 3.00 - - written off 7) Profit after depreciation 68.95 98.34 126.23 153.86 156.37 155.73 but before interest TOTAL 162.79 137.71 112.15 138.87 165.46 164.07 162.62 PROJECTED CASH FLOW STATEMENT B) OUTFLOW Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 1) Fixed assets including 132.91 contingencies 2) Deferred exp. 12 3) Increase in Current Assets 71.48 16.69 16.95 16.95 4) Repayment of Term Loan 9 20 20 20 20 20 5) Interest 28.73 26.28 22.78 19.28 15.78 12.28 6) Taxation 16 29 41 54 56 57 7) Directors remuneration 0.96 0.96 1.2 1.44 1.8 2.4 TOTAL(B) 144.91 126.17 92.93 101.92 111.67 93.58 91.68 Net surplus/ 17.88 11.54 19.22 36.95 53.79 70.49 70.94 Deficit Opening Balance 17.88 29.42 48.64 85.59 139.38 209.87 Closing Balance 17.88 29.42 48.64 85.69 139.38 209.87 280.81 PROJECTED BALANCE SHEET LIABILITIES Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Share Capital 25 25 28.79 28.79 28.79 28.79 28.79 Unsecured Loan 28.79 28.79 Term loan 109 100 80 60 40 20 - Bank borrowing - 53.6 53.6 53.6 53.6 53.6 53.6 Reserve and Surplus (net profit) - 23.26 65.36 126.61 205.75 288.54 372.59 TOTAL 162.79 230.65 252.75 294 353.14 415.93 479.98 ASSETS: 1) Fixed Assets(Net 132.91 120.75 109.94 100.3 91.7 84 77.11 depreciation 2) Deferred exp. 12 9 6 3 3) Cash/Bank Balance 17.88 29.42 48.64 85.59 139.38 209.38 280.81 4) Current Assets - 71.48 88.17 105.11 122.06 122.06 122.06 5) Other than cash Balance TOTAL 162.79 230.65 252.75 294 353.14 415.93 479.98 BREAK EVEN ANALYSIS (On 3rd year basis at 60% capacity utilisation) A) SALES 721.44 B) VARIABLE COST: 1) Raw and packing materials 456.17 2) Consumables 2.18 3) Power and Fuel 70% 0.35 4) Selling and distribution exp. 93.79 5) Admn. Exp 1.35 6) Interest on Working capital loan from bank 9.65 563.49 C) CONTRIBUTION(A-B) 157.95 D) FIXED COSTS: 1) Salary and Wages 26.4 2) Power and Fuel 30% 0.15 3) Depreciation 9.64 4) Interest on Term Loan 13.13 5) Repair and maintenance 2.18 51.5 E) B.E.P. FIXED COSTS X 100 51.50 X 100% 32.61 CONTRIBUTION 157.95 CHAPTER-1 M/S Apan Bio-Tech INTRODUCTION: The 21st. Century will be remembered for greater technology achievement, including greater understanding of the atoms structure, in formulation explosion that has resulted from advance in Computer Technology the information obtained from the space exploration. When measures in terms of its impact on the peoples lives though, 21st. Century, “ might as well be called a ‘Drug Age’. Although the Drugs alone cannot be considered to be sole reason for the progress in medicine achieved in the (URL removed)tury a glance back to its as 40 years ago indicated that “ at that time there were no antibiotics, no corticoids, sulpher drugs only few vitamins no tranquilizers, no antuhypettensives, no oral contraceptice drugs were available. “ Many great strides however, have been made in the last 40 years. So many disease have been controlled or irradicated and may experts agree that by the end of this century Pharmaceutical may be of greater importance in cure lives because of anticipated although break through in the field of neuro biology, celluler differentiation, genetics in wonder change. Nobel prize winning Bio-Chemist labeled drug as “ One of the greatest blessings by but perhaps the greatest blessings of our time”. Although every one whether friend or for of the Pharmaceutical Industry recognize the contribution of the industry to the health and welfare of the public availability of Pharmaceutical to the general public have merely occurred by chance. Pharmaceutical Industry concerned with Research and Development but it is almost important to keep in mine in the Pharmaceutial Marketing System(Working Procedure, Distribution, Re-Distribution, Correct Information). The Pharmaceutical marketing system is placing the drug available at the right time, at the right place at the right quantity, at a reasonable price. The Development of the industries post independence period in various fields of growth reflects advancement of Indian economy and Technology which have been acknowledged with surprise and appreciation by the other developing countries of the world. But spectural development of Pharmaceutical Industry has perhaps surprised all the development records in other spheres of activities. For example from Rs.10 crores investment during 1948 it has uptil 2004-2005 are going to be produced worth of Rs.4.112 crores ( i.e. completion of 9th plan) with a base capital of Rs.1000 crores . The profitability margin and further increase scope of its inherent expansion possibilities in the investment and product ratio at present with the technical expertise and other basic infrastructures facilities, involving availability of indegeneous raw materials, at cheaper rates in abundance, low cost of wages and vast and market in India and abroad. In fact, since pre-independence till 1972-73 these drug industries were completely under the fold of the big monopolist and multinational companies who have been exploiting the market and its profit charging the generic names and brand name of one decicines to other, neglecting the capacity and the purchasing limitations of the public in India just to make the utilization of their Technical capacities and market trend. The result is that against the genetic profit ratio, the coverage of population under medicinal treatment and modern drug therapy is only 30 to 35% approximately, the removing percentage being deprived of this live saving drugs out dire poverty. The survey of the population growth and the present trend business of these drug industries by these reveals two fundamentals steps to be taken which a bonovolent government cannot was to brook further delay in the interest of national economy as also of the interest of the common mass. The two positives thinking that were deemed to be adopted comprised of:- i) to extend facilities of medicinal treatment to the people and to bring more proper sections under this scheme by ensuring of medicine at cheaper rates and ii) To grave and combat the monopolistic endeavour of the big houses as far as practicable through prolonged process. The attempts, though not seen to be a gigantic success, undoubtedly appear to be fruitful and laudible steps to achieve the aim and the success of the implementation of the project. The Pharmaceutical industry plays an indispensable role in the health care of the entire population of the country whether rural or urban. The Pharmaceutical production commenced in India way back in 1901 when a unit to manufacture formulations out of important drugs was set up in West Bengal. The growth of this industry remained negligible upto 1947. During the last 25 years, the India Pharmaceutical Industry has been rapid strides in both formulations and bulk drugs. In fact the pharmaceuticals industry has made a worth while contributions to the national economy. The comparative performance of the Drug Industry is given in the following table:- (Rs. in crores) Year Production of bulk drugs Production of formulations Imports of Drugs and Pharmaceuticals Exports of drugs and pharmaceutical 2001-02 90.00 400.00 46.90 43.14 2002-03 226.00 1150.00 120.03 71.66 2003-04 377.00 1827.00 215.62 217.49 2004-05 640.00 3420.00 625.72 856.90 2005-06 880.00(Target) 4890.00(Target) 375.00(Target) 780.00(Target) Prime facie, the achievements of the drug industry in India seem satisfactory. However, in reality there has been considerable short fall in the production compared to the plan targets during the 7th and 8th plans. The shortfall in the production of bulk drugs is over 40 percent and in the case of formulations is about 35 per cent. According to the studies and projections made by National Council of Applied Economic Research (NCAER), the domestic demand for medicines by the year 2000AD, when the country is supposed to achieve the objective of “Health for All”, will be Rs.16,000 crores. This is more than four times the current production levels. In addition the country will have to produce sufficient surplus for exports. The value of the free world ethical pharmaceutical market in 1990 was around US 165,200 million. In 1980 the value of the total world market was US 62,315 millions, which has almost tripled during this decause. The U.S. Pharmaceutical market accounts for almost 30 per cent of the world market. In the table below the list of than largest Pharmaceutical market in the world has been given. The table shows that the perceptia expenditure of drug in India is very low compared to developed countries. (URL removed). Country Percentage of world market 1 U.S.A. 30 2 JAPAN 17.6 3 FRG 9 4 FRANCE 6 5 IALY 6 6 UK 3 7 CANADA 2 8 SPAIN 2 9 INDIA 1.5 10 BRAZIL 1.4 Today in India there are as many as 20,000 units, big and small, engaged in the manufacture of pharmaceuticals. Nearly 500 of these are in the orgganised sector and majority of balance units belong to the small scale sector. Collectively the industry generates employment for almost 10 lakhs people. On the national level, Gujrat accounts for 45 percent of the total pharmaceutical production in the country. From the above it can be seen that there exist vast opportunities in the field of pharmaceutical industry in India as the market for formulation is estimated to grow at an average rate of 11-12 per cent annually in coming years. As indicated earlier, the per capital consumption of drug formulation is very low compared to many developed countries based on the production value of formulation in India and its export in 1991, which are Rs.3560 crores and Rs.1230 crores respectively and with a nominal import, the per capita consumption of drug formulation in North- Eastern Region is again very low on the conservative basis if we consider per capital consumption of drug formulating in Eastern region at Rs.15/- the total current demand of drug formulations in the Eastern region can be estimated at approximately Rs.50 crores. Considering the increase in literacy, Govt. budget on health availability of medical professionals and population etc. in coming years, the demand of drug formulations in the Eastern region will have a considerable growth. Most of the requirements of drug formulation of this region is met by the supplies from outside the region. In view of the above, there appears to be bright prospect for this unit in marketing its products provided proper marketing strategy is adopted to achieve the desired market share required for its viability the product formulations have been identified keeping in view the requirements of such formulation in this region. MARKETING ARRANGEMENT: The promoter group is highly experienced in marketing of pharmaceutical products. So the company should not face any difficulty in formulation a suitable marketing arrangement. The products will be sold through distributors and as well as a unit for marketing department of the company will look after the marketing and distribution activities of the company. There will be an vast experienced Marketing Director who will lead the marketing department. The total market will be divided into two regions to be looked after by Regional Sales Manager. There will be Area Sales Managers and under them 40 numbers of Professional Service Representatives have been proposed to cover the whole market territory. Thus, with a professional approach in selling and back ground of promoters, the company should not face any problem in marketing its products. The pharmaceutical industry is a very important industry sector as the health care of millions of people of our country depends on it. At present India has top produce more than Rs.16,000 crore worth of drugs and pharmaceuticals to substantially fulfill its solemn commitment of Health for all by the year 2000. The industry has grown in a rapid pace and production value of formulations in 1990-1991 was Rs3560 crores and export from India also grew from 4 million in 1952-53 to Rs.12,500 crores in the year 1990-91. Accordingly various pharmaceutical industry have set up in different parts of the country to boost the production of drugs formulations needs for the “Health Care” of millions of the people of our country. In Eastern region, most of the requirements of drugs formulations are met from suppliers from outside of the region. There are not sufficient manufacture West Bengal and very in Assam producing formulations with low production capacity. In view of the above consideration the demand and marketing opportunities in drug formulations into the Eastern Region a group of entrepreneurs from Assam and West Bengal has incorporated “ ALMAS LABS PRIVATE LIMITED” – at Naihati, 24 Parganas to manufacture various drug formulations with the adequate modern equipment. The company Proposes to land for the factory of 50 kathas or less and civil works will start if funds are available . The promoter group is having long experience in pharmaceutical industry and is quite conversant with all aspects of the same industry. WORLD PRODUCTION OF DRUGS-1990 MILLION US Global 96,000 Indian Production as % of World Population 8.8% Indian Population as % of World production 251/2 PRICING: A new Drug Policy announced recently explains that in order to increase production which will lead to ultimate lowering of price drugs it is proposed to reduce the existing span of price control over drugs and pharmaceuticals. However, a very strong monitoring system will be evolved. As against the existing three categories of drugs and pharmaceuticals hereafter there will be two categories. The first category will consist of drugs necessary for National Health Programme and the second category that of essential drugs. Formulation, of the first category would have a MAPE (Maximum Allowable Post Manufacturing Expenses) of 75% and those of the second category of 100%. A high level expert committee has drawn up a list of drugs to be included in the second category. A new Drug price control order(DPCO) has been announced after the finalisation of drugs in two categories. The Government has retained the right to bright within ambit of control any drug in the recontrolled category whenever considered necessary. Prices of drugs in the controlled category would be constantly and closely monitored and an effective monitoring system developed for those. Government has the major role in fixing and controlling prices. It frames the policy, covers the process formula and monitors and approve prices. The main objective if the new drug policy and the new price control order into make avail as high quality. The new price norms recognize two fundamental economic principles First, the price of drugs like that of anything else is determined by cost of production. A corollary is that price reduction is possible only if the cost of production is brought down, second, unless a reasonable return is assured producers will not be encouraged to increase production of essential medicines. It is imperative to encourage cost, effective production through technological improvement, Productivity improvement and economic scale of manufacture need to be promoted by encouraging and rewarding efficiency and by removing obstacles to growth. The policy contains several measures and programmes designed to achieve this. Prices of medicines in India are not high, either in reaction to the cost of production of when compared to prices prevailing in other countries, developed and developing. This is a fact borne out experiences and confirmed by official studies and reports. Inspite of spiralling costs drug prices have not rised to the extend prices of other essential commodities and services have increased. The average annual increase in drug prices during the 15 year period 1990-2000 to 2005-2006 was 6% as against 17% in the case of all commodities. Drug prices compare very favourably with those of other essential commodities and services. Medicines today offer best value for money. HOW EXPENSIVE ARE MEDICINES ? Average cost of Average cost of common Medium per day goods of daily consumption Medicine ___________________________________________________________________________ Rs. Rs. Common headache 0.50 Cup of tea 1.00 Common allergy 0.30 Thali meal 8.00 Common cold 0.50 Milk(Half lit) 3.00 Gas trouble(Antacid) 0.50 Egg 0.90 Asthena 0.75 Banana 0.50 Diarrhoea 0.60 Soft drink 3.25 Fever(Antiobiotic) 2.00 Subarban Train 3.00 Ticket(Return) Amoebicides 1.50 Bus Fare 0.50 Tuberculosis(Multi drug 3.50 Inland letter 0.50 Treatment) Leprosy 0.30 News paper 1.80 Diabetees 0.20 Public Telephone calls 2.00 Blood Pressure 0.75 Packet of Cigarette(Ordinary) 4.00 Anging(Chest pain) 1.75 Artharities 1.75 PRODUCTS, ITS USES AND MARKET PROSPECT: The major products proposed in the unit are drugs formulations in the form of oral liquid and tablet and capsules and ointment in near future. The list of the products in their trade name proposed to be manufactured by the unit and the indications where they are used are given below:- NAME OF THE PRODUCT all proposed USERS ORAL PRODUCT A) Hilcer Suspension Antacid B) Hilcerplus suspension Antacid specific C) Andys Suspension Anti Diarrheal D) Neufen Plus Suspension Anti implemmatory Annalgesic Antipyretic E) Nulka Syrup Alkali Syrup F) Carmolytic syrup Carmolitic Anzym G) Pulp Plus Syrup Appetiser and Restorative Tonic H) Pulp plus drop Apetiser and Restorative Tonic I) Green Liv Syrup Liver Dysfunction J) Green Liv Drops Liver Dysfunction K) Protohem Syrup Iron Therapy L) Live long drops Multivitamin Restorative Tonic TABLETS: Neufen Plus Analgesic, anti-inflammatory Diloxanide Furoate Anti-glartdasis Metronidazole 200 mg Anti Amobic Almol Antipyretic Ibuprofen Analgesic Palp Plus Appetiner Green Liv Liver dysfunction Bone Cal Calcium therapy Timed Tablet Anti Amobio Timed IV tablet Anti Amoebic Some of the formulations are quite latest in the Indian Drug Industry. CAPSULES: A) Alnadex Caps : Vitamin and Minerals with Lactobacilus B) Almox Caps(500) : Broad Spectrum Antibiotic C) Almox 250 : - do – D) Lactotetra 500 : A dose convenient broad Spectrum Ahlibiotic with Lacto. E) Protohem Caps : Iron Therapy for specially During Pregnancy and Lactation. OINTMENT: A) Stanan Cream : Antifungal Cream B) Burnex Oint : Latest KTF Combination for Cuts and Burns. C) Bactorprim Oint : Antilacterial Oint D) Ascoi Oint : For Cuts, Wonds and for any Dressing in above respect. E) Meclop Vag. Oint : Most effective Vag. Oint uses For Trichmoniasis and Painful Mensturation. THE PROJECT: THE MANAGEMENT-FACILITIES TOBE PROVIDED FOR: THE PROJECT: The proposed project will be modern sophisticated medicine formulation unit at Naihati, 24, Parganas, West Bengal (Proposed). All latest State of the art machineries and equipment will be used for the formulations. THE MANAGEMENT: The project is proposed to be implemented by a Private Limited Company under the name and style of APAN BIO-TECH PRIVATE LIMITED with the registered office at P-69,E Unique Park ,Behala ,Kolkata 700 034 , West Bengal. The company has already been incorporated in the year of 2005 and started the marketing since last 1 years. The management consisting of Mr. Ajit Kumar Nath , Mr. Asish Basu , Mrs Nath and Mrs Basu . who are successful Industrial and is well experienced in pharmaceutical business financially sound and fully capable of managing the pharmaceutical unit successfully. Sri Ajit Kumar Nath is the Managing Director and Sri Asish Basu is the key-personnel as Manager Marketing. The bio-data of all the Directors are enclosed and the functional responsibilities of 4 Directors are envisaged as follows:- ( WILL BE GIVEN IN DUE COURSE) FACILITIES PROPOSED TO BE PROVIDED: Initial teething problem the company experienced difficulty in organizing the delivery of the goods as needs to the valued customer due to dependents with the co-manufacturers and non availability of fund. The factory will have the other facilities modern factory. PROJECT COST: The company proposes to approach the Financial Institutes for financial assistance for the purchase of machinery and equipments, building and civil works, misc, fixed assets, pre-operative expenses, margin money for working capital. The cost of plant and machinery and misc. fixed assets estimated at Rs.80.39 lakhs inclusive of taxes, carriage, transportation, packing, forwarding, insurance charges etc, All the equipments will be available indigeneously. The detail list of equipments is enclosed herewith. FACILITY PROPOSED IN THE PROJECT: The proposed Drug Formulation industry aims at providing medicine for various diseases as discussed. The various sophisticated equipments proposed in the project and their uses in the proposed center. The unit in a position to tackle the growing demand for proper supply. Due to constant marketing and market development and advancement of technology and where MARKET IS READY FOR SALE, the facility of the project is so essential for setting up formulation factory. COST, PROFITABILITY AND OTHER FINANCIAL ASPECTS OF THE PROJECT: The financial projections for a period of 6 years operation of the unit and various ingredients of the cost of operation and annexed to the report. The cost of such ingredient have been taken report on the basis of the present price structure. The profitability has been worked out on the basis of production programme indicated assuming the production at 40% of the installed capacity in the first year, 50% in the second year and 60% in the third year and 70% in 4th year and onwards. RAW MATERIALS: The total requirement of raw materials after considering process loss @ 5% has been worked out as shown. The total cost of raw materials has been estimated at Rs.477.20 lakhs at 100% capacity. Utilisation and will vary in the same proportion at other utilization levels. PACKING MATERIALS: In Pharmaceutical industry, the cost of packing materials is one of the major components in the cost of manufacture. The cost of packing materials(inclusive of bottles, caps, lebels, which are generally considered as a part of raw materials) at 100% capacity utilization has been estimated at Rs.283.08 lakhs and will very in the same proportion at other capacity utilization level. The details estimate of the packing materials are shown. POWER AND FUEL: The cost of power based on the total connected load of 18 KW has been estimated at Rs.0.86 lakhs per annum as shown. MANPOWER AND PLANNING: The total manpower in the project will be 123 Nos. of persons as shown below: 1) Sales and marketing staff 49 2) Office Staff 16 3) Factory Staff 9 4) Factory workers/staff 40 5) Administrative staff 3 6) Distribution staff 6 ____ 123 ____ All the required manpower including the executive will be available locally. WATER: The requirement of the water for the factory and for other purpose involved and hence no effluent treatment measures are necessary as no hazardous effluent are committed in the unit. SCHEDULE OF IMPLEMENTATION: The major activities and their implementation schedule is shown as under: (URL removed). Activity From To 1) Site Development 2) Civil works including factory godown. Boundary wall 3) PLANT AND MACHINERY: Placement of orders 4) Receipt of the plant and machineries & other equipment at site 5) Arrangement of raw materials 6) Arrangement of power 7) Installation of machinery 8) Manpower training 9) Trial Run 10) Commercial Production from the factory 11) Commercial production from Co-Manufacturers Already processing PROCESS OF MANUFACTURE: The basic process of manufacturing of Tablets and oral liquids are given below: 5.01 Tablets: Tablets can broadly divided into three classes i,e, compressed tablets, sugar coated tablets and entire coated tablets. In the present manufacturing project only two classes of tablet would be prepared. a) General Process: The general process of making compressed tablets are:- i) Direct compression ii) Slugging and iii) Wet Granulation The ingredients that goes into the preparation of a tablet are mixed with some adhesive substances which are called binders. To improve the flow properties of granules in the hopper of the tablet machine. Flow regulators or glidents are added. A lubricant sometimes become necessary to over, come the tendency of the tablet to stick to the punches and dies. For proper disintrigation of the tablet in the system a disintigrator is to be added. If the total quantity of the material become insufficient for proper size of tablets. b) PREPARATION OF SLUGGING: When tablet ingredients are sensitive to moisture or can not stand temperature drying digging and when the tablet ingredients are having binding and cohesive properties, slugging is used to form granulations. It consists of precompressing the dry mixed ingredients with lubricants into sludge which are subsequently connected to the correct size of the granule and recompressed. c) PREPARATION BY WET GRANULATION: In this process, the power ingredients are weighed and blended thoroughly. The powder blend is then shifted through a screen of suitable fineness to remove or break up the lumps. The powder blends are then shifted through an escidlating granulator which brusics the minerals through a screen. Moist materials from the granulater are sprayed in this layer on large sheets of craft paper on shallow wire rays. The dried granules are compressed in tablet punching machine and thus uncoated tablets are prepared some of the tablets are required to be coated to protect the ingredients against the atmospheric oxyten or carbondioxide, to mask uppleasent taste and odour, to improve the appearances of unlocated tablets and to control the site of action of the drug etc. The steps involved in sugar coating may be sub-divided into the following: 1) Wated profing and sealing 2) Sub-coating 3) Runding 4) Colouring and finishing and 5) Polishing Often, the water proofing and sealing step is omitted, but with sensitive substances such as vitamin mixtures it is included. The water proffing is usually made up with arsenic free sheelac. Sub-coating involves alternately wetting the tablets with sub-coating solution and when particularly dry, sprinkling with dusting powder. This cause the tablet to be rapidly filled out. Rounding or smoothing involves application of heavy syrup so that a hard smooth surface is produced, colouring and finishing involves application of thinner coloured syrup in order to build up the tablet further and obtain the desired share of colour. ANNEXURE-XIX PROCESS FLOW CHART Receipt of materials Materials stores Sampling of all materials Qualification of received Raw materials Finalisation of components For formulations Rejected components & Materials stores. Weights and measuring of Components Mixing Granulations Compounding and processing TABLETS LIQUID SUSPENSION a) Tabeling a) Mixing b) Compressing b) Stirring c) Coating c) Filteration d) Inspecting d) Components preparation e) Filling f) Sealing g) Visual Inspection STORAGE BEFORE QUALITY CONTROL STORAGE BEFORE PACKING FILLING, SEALING AND PACKING FINISHED GOODS QUALITY INSPECTION FINISHED GOODS QUALITY INSPECTION FINISHED PRODUCT STORAGE LIBORATORY CONTROL EQUIPMENT WASHING AND CLEANING PLANT CAPACITY: The company proposes to manufactures formulations such as (i) Tablet, and (ii) Oral Liquids. In tablet section, based on the capacity of the tablet making machine having a capacity of 250-400 tablets per minute. The unit will be able to manufacture 1.2 lakhs tablets per day on single shift working. The oral liquids section has a filling machine, the capacity of which is 40 bottles per minutes. Thus the capacity of the unit will be 19200 bottles per day on single shift working. Accordingly, the annual installed capacity of the unit based on 300. Working days in a year has been estimated as below:- INSTALLED CAPACITY: PRODUCT PER DAY PER ANNUM TABLET 1.2 LAKHS NOS. 360 LAKHS NOS ORAL LIQUID 19200 BOTTLE 57.00 LAKH BOTTLES CAPSULES NOS 05.40 LAKHS TUBES OINTMENT 1200 TUBES 3.60 LAKHS TUBES The capacity utilization of the unit in the 1st year, 2nd year, 3rd year and onwards has been estimated at 40%, 50% and 60% respectively and accordingly the annual production of the unit will be as below:- YEAR CAPACITY ANNUAL PRODUCTION UTILISATION TABLE ORAL LIQUID (LAKHS NOS) 1st 40% 180 28.50 2nd 50% 198 31.55 3rd 60% 216 34.20 4th and onwards 70% 252 39.90 Although the unit will be capable of producing at much higher capacity, for the purpose of economic viability projections the above capacity utilization has been considered. TECHNICAL FEASIBILITY: 1) AVAILABILITY OF TECHNICAL : The technical know how of this project is available with the entrepreneur. 2) COLLABORATION IF ANY : NIL 3) TECHNICAL QUALIFICATION : As stated in the Bio-Data the entrepreneurs AND EXPERRIENCE OF THE are technically qualified and marketing ENTERPRENEUR as well as distribution net work of Pharmaceutial sales. 4) AVAILABILITY OF PLANT & MACHINERY : The plant and machinery are indigeneously available. The main manufacturer and suppliers are as follows:- 1. M/s United Engineering(Calcutta) 2. M/s Clit India(Bombay) 3. M/s Asoka Enterprise(Calcutta 4. M/s New Salcon Scientific Concern(Calcutta) 5. M/s Pharma Pack(Bombay) 6. M/s Pam Machinery Company(Bombay) 7. M/s Adair Dutta & Sons (Calcutta) 8. M/s Geolite India Ltd(Calcutta) 9. M/s Gansons Engineers Pvt. Ltd.(Madras) 10. M/s The Scientific Apparatus Company (Calcutta) 5) EXPECTED LIFE OF MACHINERIES : 15 years and above 6) AVAILABILITY OF RAW MATERIALS :Indigeneous(all are available in the . . local market of Calcutta, Bombay, . Hyderabad and Damau Free Port. 7) STANDARDISATION OF QUALITY :Quality Control arrangement both for CONTROl raw materials and Finished product have been provided in the project. ORGANISATION CHART BOARD OF DIRECTORS MANAGING DIRECTOR DIRECTOR FINANANCE DIRECTOR MARKETING DIRECTOR PRODUCTION MANAGER MARKETING MANAGER PRODUCTION MANAGER CHIEF CHEMIST ACCOUNTS OFFICER REGIONAL REGIONAL QUUALITY MANUFACTURING ACCOUNTS RECEPTIONIST SALES SALES CONTROL CHEMIST ACCOUNTANTS OFFICE MANAGER MANAGER CHEMIST CLERK ASSTT. STENO ETC. AREA AREA MANAGER MANAGER SALES SALES PROFESSIONAL PROFESSIONAL ASSTT. (URL removed)MIST SERVICE SERVICE REPRESENTATTIVE REPRESENTATIVE SKILLED LABOUR WORKERS STORES INCHARGE WORKERS AMOUNT Rs. in lakhs CHAPTER-II NON-RECURRING EXPENSES A) LAND Cost 2.50 registration fees -0.20 2.70 B) CIVIL CONSTRUCTION I) Main factory shed ground floor (URL removed). @ Rs.400.00 per (URL removed). 26.00 1st Floor 2724 (URL removed). 350.00 9.53 35.53 ii) Godown 595 (URL removed). @ Rs.300.00 per (URL removed). 1.79 iii) Boundary wall 750 (URL removed). @ Rs.200.00 per (URL removed). 1.50 iv) Culvert , Main gate and security room 1.50 v) Overhead R.C.C. water reservoirs including deep tube wells pumps 6.00 vi) Internal road, development work etc. 3.50 49.82 C) PLANT AND MACHINERY I) Tablet section 23.12 ii) Liquid and oral section 12.02 iii) Ointment section 2.22 iv) Capsules section 1.70 Total 39.06 Add: S.T. Insurance, Freight Charges, packigng and (URL removed)y @ 12% 4.69 43.75 D) OTHER FIXEED ASSETS I)Scientific Instruments 6.15 ii) Books and Peeriodicals 0.65 iii) Other accessories 0.97 iv) Quality Control Equipments 2.02 v) Blocks, Dies and Cylinder 2.28 12.07 E) INSTALLATION AND ELECTRICALS I) Electrical Equipments 2.34 ii) Generator(50 KVA) 7.15 A.C. & other utilities iii) Security deposit to SEB 5.00 iv) Cost of installation 3.00 17.49 F) FURNITURE & FIXTURES 3.29 G) PRELIMINARY AND PREOPERATIVES 12 H) CONTINGENCIES @ 3% ON NON-FIRM COST 3.79 Total 144.91 ALLOCATION OF CONTINGENCIES UNDER DIFFERENT FIXED ASSETS (URL removed)., Particulars Cost Contingencies @ 3% Total Cost 1) Factory and other construction 49.82 1.49 51.31 2) Platnt and machineries 43.75 1.31 45.06 3) Other fixed assets including Electrification 32.85 0.99 33.84 and installation & Fuurniture and fixture Total 126.42 3.79 130.21 DETAILS OF PRE & PREOPERATIVE EXPENSES 1) Papers, documentation, legal fees and contingency fees 3.00 lakhs 2) Initial expenses 0.60 lakhs 3) Interest on loan @ 17.5% 8.00 lakhs for the construction period 4) Other Misc. expenses like travelling, 0.40 lakhs printing, stationery, postage etc. 12.00 lakhs ALLOCATION OF CONTINGENCIES UNDER DIFFERENT FIXED ASSETS (URL removed). Particulars Cost Contingencies @ 3% Total Cost 1) Factory and other construction 49.82 1.49 51.31 2) Platnt and machineries 43.75 1.31 45.06 3) Other fixed assets including Electrification and 32.85 0.99 33.84 installation and furniture and fixture TOTAL…………… 126.42 3.79 130.21 DETAILS OF PRE & PREOPERATIVE EXPENSES: 1) Papers, documentation, legal fees and 3.00 lakhs contingency fees 2) Initial expenses 0.60 lakhs 3) Interest on laon @ 17.5% for the 8.00 lakhs constuction period 4) Other Misc. expenses like travelling, printing, 0.40 lakhs stationery, postage etc. 12.00 lakhs ANNEXURE-I LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification Power Unit Unit Price Amount Manufacturer/ Suppliers Mas Mixter Capacity-50kg 5HP 1 99000.00 99000.00 Cadmach Machinery Co. Drying oven Capacity-24 trays with MS. Trays 24 extra 1HP One & half 58500.00 58500.00 Asoka Enterprise Fluid Bed Dryer 1 158700.00 158700.00 do Multi Mill 3HP 1 85000.00 85000.00 Cadmach Machinery Co. Granulator/Oscillating GNP Model 2HP 1 49500.00 49500.00 do 2G, 16 (URL removed)ary Tablet pubching m/c. Out put 260 to 450/Min 2HP 1 92500.00 92500.00 do Die-punch sets(3 sets) D.S.1/2" Concave 3 sets 60000.00 60000.00 do Tablets coating machine 36" dia 1 83125.00 83215.00 Gansons Ltd Tablets polishing pen 1 11875.00 11875.00 do a) Blister packing machine with one set of change parts PHARMAPACK 150 ch 2 432400.00 Pharmapack/Ashoka Ent. 8 71600.00 572800.00 do b) Right complete set of change parts(additional) ( The above blister pack machine will be used in tablet and capsule products of all range) c) Water cooler-120 litrs/(URL removed) 18 degree C-20 degree C-3 Bar clit deduster Clit deduster 1 44000.00 44000.00 do 1 31000.00 31000.00 do 1 31000.00 31000.00 do Dust extractor unit-150 degree C with nozzle 1 19000.00 19000.00 Cadmach Machinery Co. Dist for tablets and capsule 1 48400.00 48000.00 do Tablet disintrigation measurement apparatus 1 17250.00 17250.00 Addair Dutta & Sons Pireability Test apparatus 1 17250.00 17250.00 do 2312300 Rs.23.12 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Bottle washing machine 4 heads with 24 rinser 1/2 HP, 1 Unit 22,050.00 22,050.00 Ashoka Enterprise Stirrer(Industrial) Drying Oven 3 HP 2 Unit 23085.00 1/2 HP 15870.00 39675.00 do Capacity 24 rays 1 HP, 1 Unit with 24 extra. Trays 58500.00 59500.00 do Snerkler filter 12 bed(Horizontal) 1 H.P. Unit 1 59500.00 59500.00 do Storage Tank ( SS Vat) Capacity 2000 Lts(1 unit) 75900.00 75900.00 do do 1000 lts(2 units) 43000.00 86000.00 do 500 lts( 2 units) 30350.00 60700.00 do 300 lts(2 units) 22750.00 45500.00 do 200 lts(2 units) 17700.00 35400.00 do 100 Lts(2 units) 10750.00 21500.00 do Collied Mill 12" dia water Jacketted 3 HP(1 Unit) 62700.00 62700.00 Cadmach M/c. Co. Inline Liquid ROPP Cap sealing checking gumming machine fully automatic with conveyer Belt(complete set) United Engineering Works a) Semi automatic 2 head vacuum typeModel (V.L.F.4)1/2 HP/3 Phase/AC/440 bottle filling machine % HP(2 Unit) 33050.00 66100.00 do b) Two head volumetric bottle filing M/C.0.7 KW / Phase/440V/AC(2 Unit) 30400.00 60800.00 do c) Two SS. Cyringe for two head volumetric bottle filling machine 0.7 KW/3 phase/440 V/AC(1 unit) 46250.00 46250.00 do Total …………. 740575.00 ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers e) Hand operated Caping m/c 1 unit 16500.00 16500.00 United Engineering Works f) 28" Conveyor with motor reduction gear box and starter 1 unit 92575.00 92575.00 do g) Semi automatic HOPP caping machine with 0.5 HP motor and reduction gear box sturter(Model CM.I) 1 unit 47000.00 47000.00 do h) Semi Automatic inspection table 1 unit 37000.00 37000.00 do I) Semi automatic label gumming and pasting machine and motor 0.5 HP/AC 3 Phase/440V(Model L.C.P.1) 1 49600.00 49600.00 do j) Changeable parts for above machine 1 31050.00 31050.00 do k) Turn Table(unscramble) Model TT-30 1 35700.00 35700.00 do l) Deminerised water treatment plant (I) Capacity-1000 1 tr. Per hour 1 72450.00 72450.00 do 47600.00 47600.00 do ii) Capacity-500 ltr. Per hour 1 31750.00 31750.00 do Total 461225.00 B/f 740575.00 Total …………. 1201800.00 Rs.12.02 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Steam jacketed vat. Capacity-1000 lts 1 unit 45450.00 45450.00 United Engineering Works Autoclave 22" dia x 30" deep power 6 KW 1 unit 30800.00 30800.00 Addiar Dutta & Sons Triple Hollar Mill Size: 100x300 MW with motor 1 HP 440/Volt/3 Phase, 20 KW per hour 1 Unit 59500.00 59500.00 Asoka Enterprise Tube Filling, Sealing and batch printing machine Semi automatic 1 unit 60850.00 60850.00 United Engineering Works Extra for crimping and eoding device 2 Unit 12650.00 25300.00 do Total ……….. 221900.00 Say Rs.2.22 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Cone mixer Capacity 25 kg., 1 HP 2 Unit 42320 84640 Asoka Enterprise Vacuum pump for capsule leak echecking 1/2 HP, 1 Unit 9200 9200 do Capsule fillint machine Capacity-300 holes(Manusal operated) M.F. 30.2 Unit 33195 66390 Pam Machinery Co. Physical Balance 1 Unit 10120 10120 Addair dutta and sons Total 170350 Say Rs.1.70 lakhs STATEMENT OF SCIENTIFIC INSTRUMENT WITH MICROBIOLOGICAL SET UP (URL removed). Name of instrument Specification Unit 1) U.V. Spectro Photometer PC based stable beam UV-VIS spectro photomotor model GS 5702 1 2) Digital PG Meter 1 3) Melting Point apparatus 1500 1 4) Drying Oven(15"x15"x18") 5) Heating mantle-2 litres 550 watts 6) Double cell eletric colourimeter 1 7) Incubator(24"x24"x30") S.S. 1 8) Digital balance(Electronic) 1 9) Table top centrifuge(Electrical) 8x15ml tubes 1 10) Magnetic Stirrer 1 11) Hot air blower 1 12) Ultra violet ceracidal lamp 1 13) Polarimeter for 200mm tubes 1 14) Infrareo moisture balance 1 15) Refrawmeter 1300 to 1700 range 16) Chemical balance 1 17) Vaccum pup-capacity 30 litres/min 1 18) Constant temperature water bath 18"x12"x10" 1 19) Thermostatic water bath 16"x12"x7" 1 20) Simple retary stirrer Speed 4000 R.P.M. 1 21) Hot Plate 18"x12" 1 22) Tulu pump 1 23) 1 KVS Serve voltape stabilizer 1 24) Tect dry 7 sterilising over 12"x12"x14" 25) Auto distillation applicances 8 lit/hour-8 KW ANNEXURE:2(CONTD….) (URL removed). Name of instrument Specification Unit 26) T.L.C. Hit with (URL removed)p 1 27) Flourimeter 1 28) Laminer flow 1 29) Kearl Fisher Titrator 1 30) Deeps apparatus 1 31) Travelling microscope 1 32) Naphellometry 1 33) Vaccum drier 1 34) Vaccum Desicator 1 35) Auto clave 1 36) Muffle farness 1 37) D.T. Measurement apparatus 1 38) (URL removed)surement apparatus 1 Total Cost 6.15 lakhs ANNEXURE:3 STATEMENT OF BOOKS AND PERIODICALS (URL removed). Name Unit 1)` Indian Pharmacopoea(Volume 2) 2 2) British Pharmacopooea(Volume 2) 2 3) US & NF Pharmacopoea 1 4) The Extra Pharmacopoea(Martindale) 2 5) Remington Pharmaceuticals 1 6) Goodman and Gilman(the Pharmaceutical basis of Therapeutics) 1 7) Marckined 1 8) Good Manufacturing practice 1 9) Others Government acts and rules 2 Total 0.65 lakhs ANNEXURE-4: Statement of Other Accessories (URL removed). Specification Qty Rate Amount 1) S.S. Pipe lining for supply of (URL removed)er to different section …. ….. 20,000 2) Wooden platform for raw materials and packing materials stores 2 nos 1000 2000 3) Wooden tabe for quality control department and manufactturing unit For analysis 2 nos 6000 12000 For Instruments 4 nos. 2000 8000 Packaging table 6 nos. 4000 24000 4) Wooden pack for raw materials stores and packing materials stores 8 nos. 2000 16000 5) Pollythene Vat. Capacity-100 litres 20 nos. 250 5000 6) Pollythene bucker, capacity 25 litres 10 nos. 215 2150 7) Pollytthene tray(for bottle) 50 nos. 150 7500 8) Pollythene Balti 10 nos. 30 300 9) Pollythene Mug-Capacity 1 litre 20 nos. 10 200 Total …….. 97150 Say Rs.0.97 lakhs ANNEXURE: 5 STATEMENT OF QUALITY CONTROL ARRANGEMENT:: ANALYTICAL SECTION AMOUNT A) Wooden furniture 30,400 B) Electrical equipments 14,500 C) Other than eloetrical equipments 21000 D) Other common laboratory 17730 E) Glass apparatus 59940 F) Analytical reagents 58000 Total 201570 Say Rs.2.02 lakhs ANNEXURE: 6 STATEMENT OF BLOCKS, DIES AND CYLINDER Sl. No. Description Qty Rate Amount 1) Zinc blocks for samples catch cover 14 1500 21000 2) Zinc blocks for samples catch cover 11 2000 22000 3) Zinc blocks for labels 11 800 8800 4) Zinc blocks for labels 14 1200 16800 5) Metal cylinder for stripping materials/poly paper or Aluminium foils 14 8000 1,12,000 6) Blocks for tubes of ointment in different sizes 5 2500 12500 7) Die-punch storage trays(18 gauge) 10 2500 25000 8) Bottle mould 2 sets 5000 10000 228100 Say Rs.2.28 lakhs ANNEXURE: 7 STATEMENT OF ELECTRICAL EQUIPMENTS: Description Specification Rate Quantity Amount Exhaust fan 16" dia, 20 nos. 1500 30,000.00 Fan/Ceiling 48" length 40 nos. 800 32000 Wall/Bracket fan 16" dia, 10 nos. 800 8000 Padestal fan Big size 4 nos. 4100 16400 Industrial tube sittings 1 set 50 nos. 550 27500 Capacitor 1 no. 20000 20000 Other electrical equipments with complete wiring) factory, office, godown etc. L.S. 100000 Total ……….. 233900 Say Rs.2.34 lakhs ANNEXURE:8 STATEMENT OF UTILITIES: Name of utilities Specification, Quantiy Unit Price Amount Airconditioner Capacity 1 ton 10 nos 25000 250000 Debmudifer 2 nos. 46000 92000 Refrigerator Capacity 165 ltr. 2nos. 9000 18000 Generator set Capacity 50 KVA 1 no. (Phone # removed)00 FIRE FIGHTING ARRANGEMENTS: FIRE EXTINGUISHER Chemical vapour type 10 nos. 800 8000 Fire fighting bucker 10 nos. 200 2000 Washing Balance(Avery) Capacity 50 kgs 1 no. 48000 48000 Washing Balance(Avery) Capacity-10 KG 1 no. 22000 22000 Troller((URL removed)ting) 2 nos. 6000 12000 Gear pump Capacity 1 no. 1/2 HP 5100 5100 Total 715100 Say: Rs.7.15 lakhs ANNEXURE-9: STATEMENT OF FURNITURE AND FIXTURE Name of articles and specification Quantity reqd. Rate/Unit Amount Table-Secretariate type(full) 20 3000 60000 Table-Secretariate type(Half) 40 2000 80000 Chair-Special type 20 nos. 800 16000 Chair-Special type 40 nos. 600 24000 Chair-Special steel(with arms) 150 nos. 300 45000 Chair-Steel Chair(without arms) 50 nos. 220 11000 Almirah-Steel Office type 20 nos. 2000 40000 File cabinet-Steel(Office use) 4 nos. 4000 16000 Wooden tools 10 nos. 200 2000 Type writer 4 nos. 8000 32000 Calculator 10 nos. 300 3000 Total………. 329000 Say: Rs. 3.29 lakhs CHAPTER-III RECURRING EXPENSES: I) COST OF RAW MATERIALS: Products name` Name of raw materials Unit rate Monthly requirements Cost Hilcer suspension in 170 ML bottle D.G.L.I.P. 400X523 kg 2.09 Dimethyle polysiloxane 400x27kg 0.11 I.P. dried aluminium hydroxide 50x880kg 0.44 Gel I.P Magnesium Hydrooxide B.P. 45x880kg 0.4 Hilcer plus susp. 120 ML bottle G.G.L>I % P 400x175kg 0.7 Andys suspension 50 ML bottle Metronidazole benzeati P 77x110kg 0.77 Furazolidone IP 750x44 kg 0.33 Diloxanide Furoate IP 650x110kg 0.72 Neufen plus suspension 50ml bottle Paracetamol IP 189x18kg 0.03 Nualka syrup 100ml bottle Disodium hydrogen citrate IP 100x440kg 0.44 Cramolytic syrup 200 bottle Rungal diastase(1:1200) 1000x44 kg 0.44 Pepsin(1:13000) 1080x44kg 0.48 Weak ginger BP 1000x4.5kg 0.05 Conc. Cinnamol water DP 1200x4.5kg 0.05 Ajowan Oil IP 2500x4.5kg 0.11 Comp. Cardamon 800x4.5kg 0.04 Papf plus syrup 180 ML Bottle Cyproheptadine hydrochloride U.S.P. 26000x9 kg 2.34 Tricholine citrate 100 x17.76 kg 1.78 Llysin monohydrocloride IP 265x440kg 1.17 Thaimine hydrocloride IP 3000x6.5kg 0.2 Riboflavine IP 4500x6.5kg 0.29 Pyridoxine Hydrocloride 4000x4.5kg 0.18 13.16 Products name Name of raw materials Unit rate Monthly reqd. Cost Papf plus drop Cyprophepatadine Hydro Chloride IP 26600x2.2kg 0.59 Llysis Monohydrochloride USP 265x44 kg 0.12 Tricholine citrate 100x176kg 0.18 Thiamine Hydrochloride I.P. 3000x4.5kg Ribiflavine IP 4500x4.5kg 0.01 Pyrodoxine Hydrochloride IP 4000x4.5kg Green lit syrup Tricholine cittrate 100x1760kg 1.76 Kalamegh liquid extract B.P.C.886 600x22kg 0.13 Thiamine Hydrochloride IP 3000x6.5kg 0.2 Riboflavine IP 4500x6.5kg 0.29 Pyrodoxine Hydrochloride IP 4500x4.5kg 0.2 Green Liv drops Kalamegh liquid extract IP 66 6600x4.5kg 0.3 Tricholine citrate 100x176kg 0.18 Thaimine Hydrochloride IP 3300x440gm Riboflavine IP 4500x440 gm Pyridoxine HCL IP 4000x440gm 0.05 4.01 B/f 13.16 17.17 c/o Product name Name of raw materials Unit rate Month reqd. Cost Protchem syrup None tronic feric ammonium citrate 200x88kg 0.18 Casein Hydrolsate 20% 210x440kg 0.92 L-Lysis monohydrochloride USP 265x35 kg 0.09 Pyridoxine Hydrochloride IP 4000x1.1kg 0.04 Folic Acid 5000x450kg 0.02 Zinc sulphate 100x9kg 0.02 Calcium Gluconate 200x9kg 0.02 Vitamin D3 2000x220 IU 0.01 Vitamin B12 3000x220gm 0.01 Liv Long syrup 200 ML bottle Trichline citrate 100x308kg 0.31 Sodium Taurodycocholate BPC 300x200kg 0.07 (URL removed)hionine 300x5 kg 0.02 Vitamin BI IP 3000x1.1kg 0.03 Vitamin B2 IP 4500x1.1kg 0.05 Vitamin B12 IP 3000x50kg Kalamegh IP '66 600x4.5kg 0.03 93883535 kgs 19.02 MONTHLY REQUIREMENT ANNUAL REQUIREMENT 112.66 MT 228.24 ADD: PROCESS LOSS @ 5% 5.63 mt 11.41 118.29 MT 239.65 Add: Packing, forwarding and transportation charges etc. @ 3% 7.19 TOTAL ANNUAL COST 246.84 B) FOR TABLETS Products name Name of the raw materials Unit rate Monthly reqd. Cost Neufen plus tablet Ibuprofen IP 600x225 kg 1.35 Paracetamol IP 180x225 kg 0.41 Ceffein Aunydrops IP 600x15kg 0.09 Diloxanide Furate tablet Diloxanide Furoate 650x150kg 0.98 Metronidazole 200 MG TABS Metronidazole IP 680x125kg 0.85 Almole tablet Paracetamol IP 180x250kg 0.45 Ibuprofen 200mg tablet Ibuprofen IP 600x100mg 0.6 Papf plus tablet Cyprohepadins FCL USP 2600x25kg 0.65 Chloline bitrate 600x5kg 0.03 L-Lysine monohydrochloride 265x62.5kg 0.17 Vitamine bl IP 3000x500gm 0.02 Vitamine B/6 IP 4000x500gm 0.02 Vitamine B/2 IP 4000x500gm 0.02 Bone Cal Tablet Calcium Carbonate IP 95x500gm 0.48 Vitamine D/3 3000x25gm Timed Tablet Tetracycline HCL IP 1600X175KG 2.8 Metronidazole IP 689x225kg 1.55 Green Liv tablet Cholin bittrate 600x25kg 0.15 Bile Salt BPC '54 200x25kg 0.05 D-L-Methiopnine 300x1.25kg Vitamin B/12 IP 3000x25kg Vitamin B/1 3000x500kg 0.02 Vitamine B/6 IP 4000x500kg 0.02 Vitamine B/2 IP 4000x500kg 0.02 Timed IV Tablet Metronidazole IP 68x125kg 0.09 Tetracycline HCL IP 1600x75kg 1.2 Dilomanide Furoate IP 600x125kg 0.75 MONTHLY REQUIREMENT 24370250KG 12.77 ANNUAL REQUIREMENT 29.24 mt 153.24 Add: Process Loss @ 5% 1.46 MT 7.66 TOTAL 30.7 160.9 Add: Packing, forwarding and transportation etc. @ 3% 4.83 TOTAL ANNUAL COST 165.73 C) FOR CAPSULES Products name Name of raw materials Unit rate Monthly reqd Cost Alnadex capsules 0 3500 1.2kg 0.04 Vitamin B/2 3000 1.2kg 0.04 Nicotinamide 400 12kg 0.05 Cal-Panthonat 400 6kg 0.02 Vitamin B/6 2500 0.36kg 0.01 Vitamin B/12 300 0.18gm Folic Acid 300 1.8kg 0.01 Vitamin C 800 18kg 0.14 Lactobacilins 460 48kg 0.22 Zince Sulphate 115 6kg 0.01 Starch 10% 10 4.8kg Tale 1% 30 4.8kg 0.01 Magnesium Stcarate 30 0.48kg 50 0.48kg Almox capsules(500) Amoxicillin 3500 30kg 1.05 Lactose 10% 30 3kg Starih 10% 10 3kg Magnesium Stcarate 1% 50 0.3 0.01 Tale 1% 30 0.3 Almox 250 Amoxicillin 3500 30kg 1.05 Lactose 10% 30 3kg Starih 10% 10 3kg 0.01 Magnesium Stcarate 1% 50 0.30kg Tale 1% 30 0.3 Lactotetra 500 Tefracy Cline hcl 1625 60kg 0.98 Lactobacilli 460 4.8kg 0.02 Lactose 10% 30 6kg Starch 10% 10 6kg Talc 1% 30 0.60kg Magnasium Stearate 50 0.60kg 0.01 3.68 Products name Name of raw materials Unit rate Monthly reqd. Cost Prutohen cap Ferrous Finatate 250 2.4kg 0.07 Vitamin B/2 3000 0.30kg 0.01 Vitamin B/12 300 0.90kg Vitamin B/6 3000 0.18kg 0.08 Vitamin C 800 9kg Folic acid 300 9kg 0.03 Lilysim mono HCL 525 6kg 0.03 Dioclyi Sodium sulpho Snceinate 260 3kg Starch 10% 10 5.2kg 0.01 Lactose 10% 30 5.2 Magnesium Sterate 1% 50 0.52 Tale 1% 30 0.52 0.23 B/f 3.68 MONTHLY REQUIREMENT 2934630kg 3.61 ANNUAL REQUIREMENT 35.22 MT 45.72 ADD: PROCESS LOSS @ 5% 1.76 2.29 TOTAL 36.98MT 48.01 Add: PACKING, FORWARDING, TRANSPORT ETC .@ 3% 1.44 TOTAL ANNUAL COST 49.45 D) FOR OINTMENT Product name Name of the raw materials Unit rate Monthly reqd. Cost Stanan Cream Cotrimazole 2600 0.30kg 0.01 Betname Thatone 4500 15kg 0.07 Genetamycin 4500 30kg 0.14 Propyline Glycol 450 10 0.04 Cream 400 10 0.04 Other inactive ingredient xx XX 0.01 Burnex Ointment Kitrofurazone 750 240GM 0.18 Silver Sulphadine Giluconate 10 240gm 0.02 Propyline Gllyeol 400 20kg 0.08 Cream Lanocim 200 20kg 0.04 Bactosprim Ointment Polymixine B Sulphate 450 15kg 0.07 Zine baeitracin 200 0.12kg 0.05 Prophline Glycol 450 10kg Newmycin Sulphate 300 10.2kg 0.03 Cream base 200 10kg 0.02 Ascoi Ointment Gama benzine mexachiorid 800 3kg 0.02 Cetrimide 600 7.5kg 0.02 Providine Iodine 200 7.5kg 0.02 Meclop Veginale Ointment Matronidavole 660 0.12kg 0.02 Clotrimazole 2600 0.6kg Povidine Iodine 200 15kg 0.03 Propyline Glycol 450 10kg 0.05 Cream base and other inactive ingredient 200 10kg 0.02 Monthly requirements 75.934kg 1.17 ANNAUL REQUIREMENT 9.11KG 14.04 ADD: PROCESS LOSS @5% 0.46KG 0.7 TOTAL 9.57KG 14.74 ADD: PARKING, FORWARDING TRANSPORT @ 3% 0.44 TOTAL ANNUAL COST 15.18 TOTAL COST OF THE RAW MATERIALS (P.A.) (AT 100% CAPACITY UTILISATION) (Rs. in lakhs) TOTAL OF GROUP A 246.84 TOTAL OF GROUP B 165.73 TOTAL OF GROUP C 49.45 TOTAL OF GROUP D 15.18 TOTAL 477.2 1ST YEAR @ 40% CAP 190.88 2ND YEAR @ 50% CAP 238.6 3RD YEAR @ 60% CAP 286.32 4TH YEAR @ 70% CAP 334.04 ii) ANNAUL REQUIREMENT AND COST OF PACKING MATERIALS (AT 100% CAPACITY UTILISATION) Name of the packing materials Monthly reqd Average rate Monthly cost A) FOR ORAL LIQUID BOTTLE 530 2.25 11.93 P.P. CAPS 530 0.25 1.33 CARTOON 352 1 3.52 LABEL 575 0.2 1.15 CORRUGATED BOX 18 17 3.06 OTHER PACKING MATERIALS XX XX 0.1 TOTAL 21.09 B) FOR TABLET STRIPS ALUMINIUM FOIL 300kg 150/kg 0.45 POLLY PAPERS 400kg 80/kg 0.32 02) PRINTED PLASTIC CONTAINER a) Container of 30 tabls 25500 nos. 3 0.77 b) Container of 500 tabls 1530 nos. 8 0.12 03) Cartoons 15200 nos. 1 0.15 TOTAL 1.81 Monthly reqd Average rate Monthly cost G) FOR CAPSULE EMPTY GELATIN CAPS 216000 PCS 80.00 1000 pcs 0.17 ALUMINIUM FOILS 135kg 150kg 0.2 BOX OF 100'S CAPS 600 pcs 3.00 pcs 0.02 BOX OF 20'S CAPS 1500 box 1.00 pcs 6000 box 0.50 pc BOX OF 30'S CAPS 2000 box .50 pc 0.05 GUM ADHESIVE ETC. L.S. 0.01 TOTAL….. 0.46 D) FOR OINTMENT TUBES OF 5 GM 10500 .40/PC 0.042 TUBES OF 25 GM 3000 .60/PC 0.018 TUBES OF 10GM 9000 .60/PC 0.054 CARTOON OF 5GM TUBES 10500 .40/PC 0.042 CARTTON OF 10GM TUBES 9000 .60/PC 0.054 CARTOON OF 25GM TUBES 3000 .60/PC 0.018 OUTER CARTOON OF 50'S 360 1.00/PC 0.004 TOTAL 0.232 TOTAL MONTHLY COST OF PACKING MATERIALS 23.59 Total annual cost of packigng materials at 100% Capacity 283.08 SO, at 40% cap(1st yyear) 113.23 50% cap(2nd year) 141.54 60% cap(3rd year) 169.85 70% cap(4th onwards) 198.16 III) STATEMENT OF SALARY AND WAGES IN TOTAL (URL removed). Particulars Nos. of Heads Amount 1) Office Staff 16 327600 2) Sales and Marketing Staff 49 919800 3) Administrative Staff 3 163800 4) Distribution Staff 6 84420 5) Factory staff 40 665280 6) Labortory(Workshop) Staff 9 352(Phone # removed)700 Say Rs.25.14 lakhs N.B. There will be an opening for 123 heads in the 1st year and cost for Salary and wages will be Rs.25.14 lakh. A provision for 5% increase has been considered from 3rd year and+A649 onwards. Statement of Salary of Office Staffs NOS PAY SCALE AMOUNT ACCOUNTS OFFICER 1 4000 4000 ACCOUNTANT 1 2000 2000 ACCOUNTS CLERK 4 1500 6000 OFFICE ASSISTANT 4 1500 6000 STENOGRAPHER 1 1800 1800 RECEPTIONIST 1 1500 1500 TYPIST/CLERK 2 1500 3000 OFFICE PEON 2 850 1700 TOTAL 16 26000 YYEARLY(Rs.26,000x12) 312000 Fringe benefit-5% 15600 Total 327600 STATEMENT OF SALARY OF MARKETING AND SALES STAFFS NOS PAY SCALE AMOUNT MARKETING MANAGER 1 6000 6000 REGIONAL SALES MANAGER 2 4500 9000 AREA MANAGER 6 3000 18000 PROFESSIONAL SERVI CE REPRESENTATIVE 40 1000 40000 TOTAL 49 73000 YEARLY(Rs.73000x12) 8,76,000.00 Add: EARING BENEFIT 43,800.00 TOTAL 9,19,800.00 STATEMENT OF SALARY OF ADMINISTRATIVE STAFFS NOS PAY SCALE AMOUNT ADMINISTRATIVE OFFICE 1 6000 6000 SECRETARY 1 4000 4000 PURCHASE OFFICER 1 3000 3000 TOTAL……. 3 13000 YEARLY(Rs.13000x12) 1,56,000.00 Fringe Benefits-5% 7,800.00 TOTAL 1,63,800.00 STATEMENT OF SALARY OF DISTRIBUTION STAFFS 1) STORE IN CHARGE 1 2000 2000 2) DELIVERY VAN DRIVER 1 1500 1500 3) DELIVERY VAN HELPER 1 1000 1000 4) DELIVERY MAN 1 800 800 5) HELPER 2 700 1400 TOTAL 6 6700 YEARLY(RS.6700X12) 80,400.00 FRINGE BENEFIT-5% 4,020.00 TOTAL 84,420.00 STATEMENT OF WAGES OF FACTORY STAFF NOS PAY SCALE AMOUNT 1) MACHINE OPERATOR 6 2000.00 12000.00 2) SKILLED WORKMEN 8 1400.00 11200.00 3) SEMI SKILLED WORKMEN 8 1500.00 12000.00 4) UNSKILLED WORKMEN 10 900.00 9000.00 5) SWEEPER 2 800.00 1600.00 6) ELECTRICIAN 2 1200.00 2400.00 7) HELPER 2 800.00 1600.00 8) SECURITY 2 1500.00 3000.00 TOTAL 40 52800.00 YYEARLY(RS.52,800.00X12) 6,33,600.00 FRINGE BENEFIT-5% 31,680.00 TOTAL 6,665,280.00 STATEMENT OF SALARY OF LABORATORY(FACTORY) STAFFS NOS PAY SCALE AMOUNT 1) PRODUCTION MANAGER/CHIEF CHEMIST 1 6000.00 6000 2) QUALITY CONTROL CHEMIST 1 5000.00 5000 3)MANUFACUTURING CHEMIST 1 5000.00 5000 4) ASST. CHEMIST 2 3000.00 6000 5) LABORATORY ASST 4 1500.00 6000 TOTAL 9 28000 YEARLY(RS.28,000X12) 3,36,000.00 FRINGE BENEFIT-5% 16,800.00 TOTAL 3,52,800.00 IV) REQUIREMENT AND COST OF POWER (URL removed). NAME OF THE EQUIPMENT H.P. 1) AUTOMATIC ROTARY TABLETING MACHINE 3 2) COLLOID MILL 2 3) FILTRATION UNIT 0.5 4) TABLET COATING AND POLISHING PAN 1 5) TABLET DRYER 1 6) AUTOMATIC STRIPING MACHINE 1 7) VACUMETRIC BOTTLE FILLING 0.05 8) CAP SEALING MACHINE 0.5 9) AUTOMATIC LABEL CUMING AND PASTING MACHINE 0.05 10) (URL removed)T CHAIN CONVEYOR BELT 0.5 11) HORIZONTALTYPE MASS MIXTURE 5 12) STIRRER 2 13) CAVINET DYRE FOR BOTTLE DRYING 1 14) WATER PUMP, GENERATING AND LIGHTING ETC 5.5 15) SEMI AUTOMATIC BOTTLE WASHING AND BRUSHING MACHINE 0.5 16) OTHER MISC. MACHINERIES 1 25 HP APPROX 18 KW COST OF THE POWER 2.00(AT 100% capacity utilisatilon) 18.00x8x300x1.50 = Rs.86,400.00 Say Rs.0.86 lakhs (ANY EXCESS POWER REQUIRE FOR THE PROJECT WILL BE TAKEN CARE BY THE COMPANY AS THE NEED OF THE PROPOSED PROJECT) 1ST YEAR @ 40% Cap. Afilisation 0.35 lakhs 2nd Year @ 50% Cap. Afilisation 0.43 lakhs 3rd year @ 60% Cap. Afilisation 0.52 lakhs 4th and onwardes @ 70% Cap. Afilisation 0.60 lakhs V) ADMINISTRATIVE EXPENSES ITEMS (RS. IN LAKHS) 1) INSURANCE OF FIXED ASSETS 0.25 2) POSTAGES AND TELEPHONE 0.25 3) AUDIT FEES AND LEGAL EXPENSES 0.1 4) CONVEYANCE 0.25 5) STATIONERY 0.15 6) MISC, EXPENSES 0.12 TOTAL 1.12 Lakh(on 1st year) VI) SALES AND MARKETING EXPENSES 1) TRAVELLING EXPENSES FOR SALE PERSONNEL@ 3% ON SALES. 2) MARKETING AND SELLING EXPENSES @ 2% ON SALES 3) SALES PROMOTIONAL EXPENSES @ 5% ON SALES 4) DISTRIBUTION EXPENSES @ 3% ON SALES TOTAL 13% ON NET SALES VALUE PER YEAR TOTAL RECURRING EXPENSES(PER MONTH) (Rs. in lakhs) Particulars 1st year 2nd year 3rd year 4th year CAPACITY UTILISATION 40% 50% 60% 70% RAW MATERIALS 15.91 19.88 23.86 27.84 PACKING MATERIALS 9.44 11.80 14.15 16.51 SALARY AND WAGES 2.10 2.10 2.20 2.31 POWER 0.30 0.40 0.05 0.05 REPAIR AND MAINTENANCE 0.15 0.16 0.18 0.20 CONSUMABLES 0.15 0.16 0.18 0.20 TOTAL 27.78 34.14 40.62 47.11 CHAPTER-IV COST OF PROJECT AND MEANS OF FINANCE (RS. IN LAKHS) A) TOTAL CAPITAL OUTLAY 1) LAND AND BUILDING 52.52 2) PLANT AND MACHINERY 53.75 3) OTHER FIXED ASSETS 12.07 4) INSTALLATION AND ELECTRIFICATION 17.49 5) FURNITURE AND FIXTURES 3.29 6) PRELIMINARY AND PREOPERATIVES 12 7) CONTINGENCIES 3.79 8) MARGIN MONEY FOR WORKING CAPITAL 17.88 162.79 9) BANK BORROWING FOR WORKING CAPITAL 53.6 10) CAPITAL OUTLAY 216.39 B) MEANS OF FINANCE 1) SHARE CAPITAL 25 2) TERM LOAN (4.67% OF PROJECT COST) 1009 3) UNSECURED LOAN 28.79 4) BANK FINANCE @ 75% OF WORKING CAPITAL 53.6 TOTAL 216.39 CHAPTER-V FINANCIAL IMPLICATIONS: This capter gives the financial projection regarding sales realisation, profitability statement, computation of working capital and computation of interest, taxation, cash flow, statement, and balance sheet, nreak even point, debt service coverage ration and pay back period have also been worked out in details to show in the financial viability of the project. PROJECT COST AND MEANS OF FINANCE The project is estimated to cost Rs.1662.79 lakhs including margin money for working capital of Rs.17.88 lakhs. The amount is proposed to be financed as under: 1) SHARE CAPITAL 25.00 LAKHS 2) TERM LOAN 109.00 LAKHS 3) UNSECURED LOAN 28.79 LAKHS 162.79 LAKHS SHARE CAPITAL: The promoters capital of Rs.25.00 lakhs will be contributed by the entrepreneurs themselves by issuing shares. TERM LOAN The term loan of Rs.109.00 lakhs is proposed to be obtained from Industrial Development Bank of India. The loan is proposed to be repaid in 6 years by 11 half yearly instalment which will be commenced from the after 1 year Moratorium I.e. at the end of 1st operating year. The loan will bear an interest @ 17.5% annum. COMPUTATION OF WORKING CAPITAL: Details computation of working capital requirement made in appendix 5.1 bank finance has been considered to bew 75% of the total Investment towards working capital while considering the same Provision for one month stock of raw materials one week work-in-process, 3 weeks stock of finished goods and 30 days receivable(at cost) has been kept). BALANCE SHEET: Project Balance Sheet for 7 years has been computedn in appendix 5.8 BREAK-EVEN POINT: Break-even point calculation for 3 year at maximum capacity utilisation has been computed in Appendix 5.9 DEBT SERVICE COVER AGE RATIO: D.S.C.R. has been calculated in appendix 5.6 INTEREST: Interest on term loan working capital has been shown in Appendix 5.4 COMPUTATION OF WORKING CAPITAL Particulars Basis Bank Finance 1st year at 40% cap. Utilisation 2nd year at 50% cap. Utilisation 3rd year at 60% cap. Utilisation 4th year at 70% cap. Utilisation Total amount Bank finance Margin money Total amount Bank finance Margin money Total amount Bank finance Margin money Total amount Bank finance Margin money Raw and packing 1 month 75% 15.91 11.93 3.98 19.88 14.91 4.97 23.86 17.89 5.97 27.84 20.88 6.96 materials work-in-process 1 week 75% 6.95 5.21 1.74 8.54 6.4 2.14 10.16 7.62 2.54 11.78 8.83 2.95 finished goods 3 weeks 75% 20.84 15.63 5.21 25.61 19.21 6.4 30.47 22.85 7.62 35.33 26.5 8.83 Receivables(at cost) 1 month 75% 27.78 20.83 6.95 34.14 25.6 8.54 40.62 30.16 10.16 47.11 35.33 11.78 71.48 53.6 17.88 88.17 66.12 22.05 105.11 78.82 26.29 122.06 91.54 30.52 DEPRECIATION CALCULATION IN W.D.V. METHOD YEAR BUILD COST @ 5% p.a. Plant & M/C @ 10% p.a. Other Assets @ 15% p.a. Total FIRST YEAR Purchase during the year 51.31 45.06 33.84 130.21 Depreciation 2.57 4.51 5.08 12.16 Second Year: Opening Balance 48.74 40.55 38.76 128.05 Depreciation 2.44 4.06 4.31 10.81 THIRD YEAR Opening Balance 46.3 36.49 24.45 107.24 Depreciation 2.32 3.65 3.67 9.64 FOURTH YEAR Opening Balance 43.98 32.84 20.78 97.6 Depreciation 2.2 3.28 3.12 8.6 FIFTH YEAR: Opening Balance 41.48 29.56 17.66 88.7 Depreciation 2.09 2.96 2.65 7.7 SIXTH YEAR: Opening Balance 39.69 26.6 15.01 81.3 Depreciation 1.98 2.66 2.25 6.89 APPENDIX:5.3 ESTIMATED SALES: The sale figures of the proposed production at 100% capacity utilisation per annum has been calculated as follows:- BY SALE OF AMOUNTS(RS. IN LAKHS) LIQUIDS 734.04 TABLETS 290.28 CAPSULES 116.16 OINTMENTS 61.32 1201.8 ADD: EXCISE DUTY @ 15% 180.27 TOTAL 1382.07 Hence, the sale value of the finished products in different years as per capacity utilisation are as follows:- YEAR CAPACITY UTILISATION TOTAL AMOUNT P.A. 1ST YEAR 40% 552.83 2ND YEAR 50% 691.04 3RD YEAR 60% 829.24 4TH AND ONWARDS 70% 967.45 ESTIMATES OF PRODUCTION AND SALES (At 100% capacity utilisation) (URL removed). PRODUCT MONTHLY PRODUCTION UNIT SELLING RATE(TRADE PRICE) (RS) MONTHLY AMOUNT TOTAL ANNUAL AMOUNT A) ORAL LIQUIDS 1) Hilcher Suspension 52800 bottles 13.75 per bottle 7.26 2) Hilcer plus Suspension 26400 11 2.9 3) Andhya Suspension 22000 14.3 3.15 4) Neufen plus Suspension 22000 14.3 3.15 5) Naulk Syrup 22000 9 1.98 6) Carmolytie Syrup 44000 23.9 10.52 7) Pap plus syrup 88000 27.5 24.2 8) Pap plus drop 22000 12.9 2.84 9) Green liv syrup 88000 25.3 22.26 10) Green liv drops 22000 12 2.64 11) Protohem Syrup 44000 25.8 11.35 12) Live long syrup 22000 22.5 5.61 TOTAL 475200 Less: Physicians sample 9500 bottles 19.57 a) @ 20% b) Breakage wastage, leakage, expiry @ 5% 23760 4.89 356400 bottles 73.4 NET SALES REALISATION (AFTER 20% TRADE DISCOUNT) B) TABLETS 61.17 734.04 1) Neufen plus tablet 5 lacs nos. 105/100 tab 5.25 2) Metronidazole Tablets 2.5 lacs 80/500 tab 0.4 3) Diloxanide furo 2.5 lacs 50/100 tab 1.25 4) Almole tablets 2.5 lacs 95/500 tab 0.48 5) Ibuprofen 200mg tablets 2.5 lacs 80/500 tab 0.4 6) Papf. Plus tablet 2.5 lacs 5/30 tab 1.25 7) Green Liv tablet 2.5 lacs 30/30 tab 2.5 8) Bone cal tablet 2.5 lacs 32/30 tab 2.67 9) Timed tablet 5.0 lacs 305/100 tab 15.25 10) Timed IV 2.5 lacs 330/100 tab 8.25 TOTAL 30.0 LAKHS NOS. 37.7 452.4 LESS: Physicians sample a) @ 20% 6.00 lakhs nos. 7.54 b) Breakage, wastage, expiry etc.@ 3% 0.9 lakhs nos. 1.13 23.10- lakhs nos. 29.03 MONTHLY AMOUNT TOTAL ANNUAL AMOUNT NET SALES REALISATION (After 20% Trade Discount) 24.19 290.28 C) CAPSULES 1) Allendex 12000 unit(1 unit = 10 caps) 19.2 2.3 2) Almox 500 6000 units 39 2.34 3) Almox 250 12000 units 26 3.12 4) Lactotetra 12000 unit 21 2.52 5) Protohem 12000 unit 15 1.8 TOTAL: 54000 UNIT 12.08 Less: a) Physician sample @ 15% - 8100 unit 1.8 10.28 b) Breakage, wastage, leakage, expiry @ 5% =2700 0.6 9.68 LAKHS TOTAL So, yearly sale at 100% capacity = 116.166 lakhs D) OINTMENTS: 1) Brunax 12000 unit 18.00 2.16 2) Bactosprim 6000 units 14.00 0.84 3) Asebi 6000 units 22.50 1.35 4) Maelop(veginale) 6000 units 17.00 1.02 5) Stanan cream 6000 units 17.00 1.02 TOTAL 36000 UNITS 6.39 Less: a) Physican sample @ 15% = 5400 unit 0.96 5.43 b) Breakage, wastage, leakages expiry @ 5% = 18700 units 0.32 TOTAL 5.11 lakhs So, yearly sale at 100% capacity = 61.332 lakhs COMPUTATION OF INTEREST AND REPAYMENT SCHEDULE A)TERM LOAN YEAR HALF OPENING BALANCE REPAYMENT CLOSING BALANCE INTEREST @ 17.5% PER ANNUM 1st 1st 109 ….. 109 9.54 2nd 109 9 100 9.54 19.08 2nd 1st 100 10 90 8.75 2nd 90 10 80 7.88 16.63 3rd 1st 80 10 70 7 2nd 70 10 60 6.13 13.13 4th 1st 60 10 50 5.25 2nd 50 10 40 4.38 9.63 5th 1st 40 10 30 3.5 2nd 30 10 20 2.63 6.13 6th 1st 20 10 10 1.75 2nd 10 10 nil 0.88 2.63 B) WORKING CAPITAL LOAN: Rs.53.60 lakhs interest @ 18% p.a. = Rs.9.65 lakhs per year C) TOTAL INTEREST YEAR INTEREST ON TERM LAON INTEREST ON WORKING CAPITAL LAON TOTAL AMOUNT 1ST 19.08 9.65 28.73 2ND 16.63 9.65 26.28 3RD 13.13 9.65 22.78 4TH 9.63 9.65 19.28 5TH 6.13 9.65 15.78 6TH 2.63 9.65 12.28 PROJECTED PROFITABILITY STATEMENT PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Capacity utilisation 40% 50% 60% 70% 70% 70% A) Gross Sales 552.83 691.04 829.24 967.45 967.45 967.45 Less: Ex-duty 71.87 89.84 107.8 125.77 125.77 125.77 Net Sales 480.96 601.2 721.44 841.68 841.68 841.68 B) Cost of Sales I) Raw materials 190.88 238.6 286.32 334.04 334.04 334.04 ii) Packing materials 113.23 141.54 169.85 198.16 198.16 198.16 iii) Consumable stores 1.8 1.98 2.18 2.4 2.4 2.4 iv) Power and fuel 0.36 0.42 0.5 0.59 0.59 0.59 v) Repair and maintenance 1.8 1.98 2.18 2.4 2.4 2.4 vi) Salary and Wages 25.14 25.14 26.4 27.72 29.11 30.56 vii) Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 TOOTAL(B) 345.47 420.47 497.07 573.91 574.4 575.01 C) Gross Profit(A-B) 135.59 180.73 224.37 267.77 267.28 266.64 D) Sales & Marketing Exp 62.52 78.16 93.79 109.42 109.42 109.42 E) Administrative Exp. 1.12 1.23 1.35 1.49 1.49 1.49 F) Deferred exp written off 3 3 3 3 - - G) Profit before interest 68.95 98.34 126.23 153.86 156.37 155.73 H) Interest payable 28.73 26.28 22.78 19.28 15.78 12.28 PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Operating Profit 40.22 72.06 103.45 134.58 140.59 143.45 Tax provision 16.00 29.00 41.00 54.00 56 57 40% approx Director's Remuneration 0.96 0.96 1.2 1.44 1.8 2.4 Net Profit 23.26 42.1 61.25 79.14 82.79 84.05 Add: Back Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 Cash Accruals 35.42 52.91 70.89 87.74 90.49 90.94 Repayment 9.00 20.00 20.00 20.00 20.00 20.00 DEBT SERVICE COVERAGE RATIO(D.S.C.R.) PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR A) Debt Servicing fund Cash accruals 428.49 35.42 52.91 87.74 90.59 90.94 Interest on Term Loan 67.23 19.08 16.63 9.63 6.13 2.63 TOTAL 495.72 54.5 69.54 97.37 96.72 93.57 B) DEBTS Repayment on term loan 109 9 20 20 20 20 Payment of interest on 67.23 19.08 16.63 9.63 6.13 2.63 Term laon TOTAL 176.23 28.08 36.63 29.63 26.13 22.63 C) D.S.C.R.(A/B) 2.81:1 1.94:1 1.9:1 3.29:1 3.7:1 4.13:1 PROJECTED CASH FLOW STATEMENT: A) Inflow Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 1) Share Capital 25 - - - - - - 2) Unsecured loan 28.79 - - - - - - 3) Term laon 109 - - - - - - 4) Increase in Working 53.6 Capital Loan 5) Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 6) Deferred exp. 3.00 3.00 3.00 3.00 - - written off 7) Profit after depreciation 68.95 98.34 126.23 153.86 156.37 155.73 but before interest TOTAL 162.79 137.71 112.15 138.87 165.46 164.07 162.62 PROJECTED CASH FLOW STATEMENT B) OUTFLOW Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 1) Fixed assets including 132.91 contingencies 2) Deferred exp. 12 3) Increase in Current Assets 71.48 16.69 16.95 16.95 4) Repayment of Term Loan 9 20 20 20 20 20 5) Interest 28.73 26.28 22.78 19.28 15.78 12.28 6) Taxation 16 29 41 54 56 57 7) Directors remuneration 0.96 0.96 1.2 1.44 1.8 2.4 TOTAL(B) 144.91 126.17 92.93 101.92 111.67 93.58 91.68 Net surplus/ 17.88 11.54 19.22 36.95 53.79 70.49 70.94 Deficit Opening Balance 17.88 29.42 48.64 85.59 139.38 209.87 Closing Balance 17.88 29.42 48.64 85.69 139.38 209.87 280.81 PROJECTED BALANCE SHEET LIABILITIES Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Share Capital 25 25 28.79 28.79 28.79 28.79 28.79 Unsecured Loan 28.79 28.79 Term loan 109 100 80 60 40 20 - Bank borrowing - 53.6 53.6 53.6 53.6 53.6 53.6 Reserve and Surplus (net profit) - 23.26 65.36 126.61 205.75 288.54 372.59 TOTAL 162.79 230.65 252.75 294 353.14 415.93 479.98 ASSETS: 1) Fixed Assets(Net 132.91 120.75 109.94 100.3 91.7 84 77.11 depreciation 2) Deferred exp. 12 9 6 3 3) Cash/Bank Balance 17.88 29.42 48.64 85.59 139.38 209.38 280.81 4) Current Assets - 71.48 88.17 105.11 122.06 122.06 122.06 5) Other than cash Balance TOTAL 162.79 230.65 252.75 294 353.14 415.93 479.98 BREAK EVEN ANALYSIS (On 3rd year basis at 60% capacity utilisation) A) SALES 721.44 B) VARIABLE COST: 1) Raw and packing materials 456.17 2) Consumables 2.18 3) Power and Fuel 70% 0.35 4) Selling and distribution exp. 93.79 5) Admn. Exp 1.35 6) Interest on Working capital loan from bank 9.65 563.49 C) CONTRIBUTION(A-B) 157.95 D) FIXED COSTS: 1) Salary and Wages 26.4 2) Power and Fuel 30% 0.15 3) Depreciation 9.64 4) Interest on Term Loan 13.13 5) Repair and maintenance 2.18 51.5 E) B.E.P. FIXED COSTS X 100 51.50 X 100% 32.61 CONTRIBUTION 157.95 CHAPTER-1 M/S Apan Bio-Tech INTRODUCTION: The 21st. Century will be remembered for greater technology achievement, including greater understanding of the atoms structure, in formulation explosion that has resulted from advance in Computer Technology the information obtained from the space exploration. When measures in terms of its impact on the peoples lives though, 21st. Century, “ might as well be called a ‘Drug Age’. Although the Drugs alone cannot be considered to be sole reason for the progress in medicine achieved in the (URL removed)tury a glance back to its as 40 years ago indicated that “ at that time there were no antibiotics, no corticoids, sulpher drugs only few vitamins no tranquilizers, no antuhypettensives, no oral contraceptice drugs were available. “ Many great strides however, have been made in the last 40 years. So many disease have been controlled or irradicated and may experts agree that by the end of this century Pharmaceutical may be of greater importance in cure lives because of anticipated although break through in the field of neuro biology, celluler differentiation, genetics in wonder change. Nobel prize winning Bio-Chemist labeled drug as “ One of the greatest blessings by but perhaps the greatest blessings of our time”. Although every one whether friend or for of the Pharmaceutical Industry recognize the contribution of the industry to the health and welfare of the public availability of Pharmaceutical to the general public have merely occurred by chance. Pharmaceutical Industry concerned with Research and Development but it is almost important to keep in mine in the Pharmaceutial Marketing System(Working Procedure, Distribution, Re-Distribution, Correct Information). The Pharmaceutical marketing system is placing the drug available at the right time, at the right place at the right quantity, at a reasonable price. The Development of the industries post independence period in various fields of growth reflects advancement of Indian economy and Technology which have been acknowledged with surprise and appreciation by the other developing countries of the world. But spectural development of Pharmaceutical Industry has perhaps surprised all the development records in other spheres of activities. For example from Rs.10 crores investment during 1948 it has uptil 2004-2005 are going to be produced worth of Rs.4.112 crores ( i.e. completion of 9th plan) with a base capital of Rs.1000 crores . The profitability margin and further increase scope of its inherent expansion possibilities in the investment and product ratio at present with the technical expertise and other basic infrastructures facilities, involving availability of indegeneous raw materials, at cheaper rates in abundance, low cost of wages and vast and market in India and abroad. In fact, since pre-independence till 1972-73 these drug industries were completely under the fold of the big monopolist and multinational companies who have been exploiting the market and its profit charging the generic names and brand name of one decicines to other, neglecting the capacity and the purchasing limitations of the public in India just to make the utilization of their Technical capacities and market trend. The result is that against the genetic profit ratio, the coverage of population under medicinal treatment and modern drug therapy is only 30 to 35% approximately, the removing percentage being deprived of this live saving drugs out dire poverty. The survey of the population growth and the present trend business of these drug industries by these reveals two fundamentals steps to be taken which a bonovolent government cannot was to brook further delay in the interest of national economy as also of the interest of the common mass. The two positives thinking that were deemed to be adopted comprised of:- i) to extend facilities of medicinal treatment to the people and to bring more proper sections under this scheme by ensuring of medicine at cheaper rates and ii) To grave and combat the monopolistic endeavour of the big houses as far as practicable through prolonged process. The attempts, though not seen to be a gigantic success, undoubtedly appear to be fruitful and laudible steps to achieve the aim and the success of the implementation of the project. The Pharmaceutical industry plays an indispensable role in the health care of the entire population of the country whether rural or urban. The Pharmaceutical production commenced in India way back in 1901 when a unit to manufacture formulations out of important drugs was set up in West Bengal. The growth of this industry remained negligible upto 1947. During the last 25 years, the India Pharmaceutical Industry has been rapid strides in both formulations and bulk drugs. In fact the pharmaceuticals industry has made a worth while contributions to the national economy. The comparative performance of the Drug Industry is given in the following table:- (Rs. in crores) Year Production of bulk drugs Production of formulations Imports of Drugs and Pharmaceuticals Exports of drugs and pharmaceutical 2001-02 90.00 400.00 46.90 43.14 2002-03 226.00 1150.00 120.03 71.66 2003-04 377.00 1827.00 215.62 217.49 2004-05 640.00 3420.00 625.72 856.90 2005-06 880.00(Target) 4890.00(Target) 375.00(Target) 780.00(Target) Prime facie, the achievements of the drug industry in India seem satisfactory. However, in reality there has been considerable short fall in the production compared to the plan targets during the 7th and 8th plans. The shortfall in the production of bulk drugs is over 40 percent and in the case of formulations is about 35 per cent. According to the studies and projections made by National Council of Applied Economic Research (NCAER), the domestic demand for medicines by the year 2000AD, when the country is supposed to achieve the objective of “Health for All”, will be Rs.16,000 crores. This is more than four times the current production levels. In addition the country will have to produce sufficient surplus for exports. The value of the free world ethical pharmaceutical market in 1990 was around US 165,200 million. In 1980 the value of the total world market was US 62,315 millions, which has almost tripled during this decause. The U.S. Pharmaceutical market accounts for almost 30 per cent of the world market. In the table below the list of than largest Pharmaceutical market in the world has been given. The table shows that the perceptia expenditure of drug in India is very low compared to developed countries. (URL removed). Country Percentage of world market 1 U.S.A. 30 2 JAPAN 17.6 3 FRG 9 4 FRANCE 6 5 IALY 6 6 UK 3 7 CANADA 2 8 SPAIN 2 9 INDIA 1.5 10 BRAZIL 1.4 Today in India there are as many as 20,000 units, big and small, engaged in the manufacture of pharmaceuticals. Nearly 500 of these are in the orgganised sector and majority of balance units belong to the small scale sector. Collectively the industry generates employment for almost 10 lakhs people. On the national level, Gujrat accounts for 45 percent of the total pharmaceutical production in the country. From the above it can be seen that there exist vast opportunities in the field of pharmaceutical industry in India as the market for formulation is estimated to grow at an average rate of 11-12 per cent annually in coming years. As indicated earlier, the per capital consumption of drug formulation is very low compared to many developed countries based on the production value of formulation in India and its export in 1991, which are Rs.3560 crores and Rs.1230 crores respectively and with a nominal import, the per capita consumption of drug formulation in North- Eastern Region is again very low on the conservative basis if we consider per capital consumption of drug formulating in Eastern region at Rs.15/- the total current demand of drug formulations in the Eastern region can be estimated at approximately Rs.50 crores. Considering the increase in literacy, Govt. budget on health availability of medical professionals and population etc. in coming years, the demand of drug formulations in the Eastern region will have a considerable growth. Most of the requirements of drug formulation of this region is met by the supplies from outside the region. In view of the above, there appears to be bright prospect for this unit in marketing its products provided proper marketing strategy is adopted to achieve the desired market share required for its viability the product formulations have been identified keeping in view the requirements of such formulation in this region. MARKETING ARRANGEMENT: The promoter group is highly experienced in marketing of pharmaceutical products. So the company should not face any difficulty in formulation a suitable marketing arrangement. The products will be sold through distributors and as well as a unit for marketing department of the company will look after the marketing and distribution activities of the company. There will be an vast experienced Marketing Director who will lead the marketing department. The total market will be divided into two regions to be looked after by Regional Sales Manager. There will be Area Sales Managers and under them 40 numbers of Professional Service Representatives have been proposed to cover the whole market territory. Thus, with a professional approach in selling and back ground of promoters, the company should not face any problem in marketing its products. The pharmaceutical industry is a very important industry sector as the health care of millions of people of our country depends on it. At present India has top produce more than Rs.16,000 crore worth of drugs and pharmaceuticals to substantially fulfill its solemn commitment of Health for all by the year 2000. The industry has grown in a rapid pace and production value of formulations in 1990-1991 was Rs3560 crores and export from India also grew from 4 million in 1952-53 to Rs.12,500 crores in the year 1990-91. Accordingly various pharmaceutical industry have set up in different parts of the country to boost the production of drugs formulations needs for the “Health Care” of millions of the people of our country. In Eastern region, most of the requirements of drugs formulations are met from suppliers from outside of the region. There are not sufficient manufacture West Bengal and very in Assam producing formulations with low production capacity. In view of the above consideration the demand and marketing opportunities in drug formulations into the Eastern Region a group of entrepreneurs from Assam and West Bengal has incorporated “ ALMAS LABS PRIVATE LIMITED” – at Naihati, 24 Parganas to manufacture various drug formulations with the adequate modern equipment. The company Proposes to land for the factory of 50 kathas or less and civil works will start if funds are available . The promoter group is having long experience in pharmaceutical industry and is quite conversant with all aspects of the same industry. WORLD PRODUCTION OF DRUGS-1990 MILLION US Global 96,000 Indian Production as % of World Population 8.8% Indian Population as % of World production 251/2 PRICING: A new Drug Policy announced recently explains that in order to increase production which will lead to ultimate lowering of price drugs it is proposed to reduce the existing span of price control over drugs and pharmaceuticals. However, a very strong monitoring system will be evolved. As against the existing three categories of drugs and pharmaceuticals hereafter there will be two categories. The first category will consist of drugs necessary for National Health Programme and the second category that of essential drugs. Formulation, of the first category would have a MAPE (Maximum Allowable Post Manufacturing Expenses) of 75% and those of the second category of 100%. A high level expert committee has drawn up a list of drugs to be included in the second category. A new Drug price control order(DPCO) has been announced after the finalisation of drugs in two categories. The Government has retained the right to bright within ambit of control any drug in the recontrolled category whenever considered necessary. Prices of drugs in the controlled category would be constantly and closely monitored and an effective monitoring system developed for those. Government has the major role in fixing and controlling prices. It frames the policy, covers the process formula and monitors and approve prices. The main objective if the new drug policy and the new price control order into make avail as high quality. The new price norms recognize two fundamental economic principles First, the price of drugs like that of anything else is determined by cost of production. A corollary is that price reduction is possible only if the cost of production is brought down, second, unless a reasonable return is assured producers will not be encouraged to increase production of essential medicines. It is imperative to encourage cost, effective production through technological improvement, Productivity improvement and economic scale of manufacture need to be promoted by encouraging and rewarding efficiency and by removing obstacles to growth. The policy contains several measures and programmes designed to achieve this. Prices of medicines in India are not high, either in reaction to the cost of production of when compared to prices prevailing in other countries, developed and developing. This is a fact borne out experiences and confirmed by official studies and reports. Inspite of spiralling costs drug prices have not rised to the extend prices of other essential commodities and services have increased. The average annual increase in drug prices during the 15 year period 1990-2000 to 2005-2006 was 6% as against 17% in the case of all commodities. Drug prices compare very favourably with those of other essential commodities and services. Medicines today offer best value for money. HOW EXPENSIVE ARE MEDICINES ? Average cost of Average cost of common Medium per day goods of daily consumption Medicine ___________________________________________________________________________ Rs. Rs. Common headache 0.50 Cup of tea 1.00 Common allergy 0.30 Thali meal 8.00 Common cold 0.50 Milk(Half lit) 3.00 Gas trouble(Antacid) 0.50 Egg 0.90 Asthena 0.75 Banana 0.50 Diarrhoea 0.60 Soft drink 3.25 Fever(Antiobiotic) 2.00 Subarban Train 3.00 Ticket(Return) Amoebicides 1.50 Bus Fare 0.50 Tuberculosis(Multi drug 3.50 Inland letter 0.50 Treatment) Leprosy 0.30 News paper 1.80 Diabetees 0.20 Public Telephone calls 2.00 Blood Pressure 0.75 Packet of Cigarette(Ordinary) 4.00 Anging(Chest pain) 1.75 Artharities 1.75 PRODUCTS, ITS USES AND MARKET PROSPECT: The major products proposed in the unit are drugs formulations in the form of oral liquid and tablet and capsules and ointment in near future. The list of the products in their trade name proposed to be manufactured by the unit and the indications where they are used are given below:- NAME OF THE PRODUCT all proposed USERS ORAL PRODUCT A) Hilcer Suspension Antacid B) Hilcerplus suspension Antacid specific C) Andys Suspension Anti Diarrheal D) Neufen Plus Suspension Anti implemmatory Annalgesic Antipyretic E) Nulka Syrup Alkali Syrup F) Carmolytic syrup Carmolitic Anzym G) Pulp Plus Syrup Appetiser and Restorative Tonic H) Pulp plus drop Apetiser and Restorative Tonic I) Green Liv Syrup Liver Dysfunction J) Green Liv Drops Liver Dysfunction K) Protohem Syrup Iron Therapy L) Live long drops Multivitamin Restorative Tonic TABLETS: Neufen Plus Analgesic, anti-inflammatory Diloxanide Furoate Anti-glartdasis Metronidazole 200 mg Anti Amobic Almol Antipyretic Ibuprofen Analgesic Palp Plus Appetiner Green Liv Liver dysfunction Bone Cal Calcium therapy Timed Tablet Anti Amobio Timed IV tablet Anti Amoebic Some of the formulations are quite latest in the Indian Drug Industry. CAPSULES: A) Alnadex Caps : Vitamin and Minerals with Lactobacilus B) Almox Caps(500) : Broad Spectrum Antibiotic C) Almox 250 : - do – D) Lactotetra 500 : A dose convenient broad Spectrum Ahlibiotic with Lacto. E) Protohem Caps : Iron Therapy for specially During Pregnancy and Lactation. OINTMENT: A) Stanan Cream : Antifungal Cream B) Burnex Oint : Latest KTF Combination for Cuts and Burns. C) Bactorprim Oint : Antilacterial Oint D) Ascoi Oint : For Cuts, Wonds and for any Dressing in above respect. E) Meclop Vag. Oint : Most effective Vag. Oint uses For Trichmoniasis and Painful Mensturation. THE PROJECT: THE MANAGEMENT-FACILITIES TOBE PROVIDED FOR: THE PROJECT: The proposed project will be modern sophisticated medicine formulation unit at Naihati, 24, Parganas, West Bengal (Proposed). All latest State of the art machineries and equipment will be used for the formulations. THE MANAGEMENT: The project is proposed to be implemented by a Private Limited Company under the name and style of APAN BIO-TECH PRIVATE LIMITED with the registered office at P-69,E Unique Park ,Behala ,Kolkata 700 034 , West Bengal. The company has already been incorporated in the year of 2005 and started the marketing since last 1 years. The management consisting of Mr. Ajit Kumar Nath , Mr. Asish Basu , Mrs Nath and Mrs Basu . who are successful Industrial and is well experienced in pharmaceutical business financially sound and fully capable of managing the pharmaceutical unit successfully. Sri Ajit Kumar Nath is the Managing Director and Sri Asish Basu is the key-personnel as Manager Marketing. The bio-data of all the Directors are enclosed and the functional responsibilities of 4 Directors are envisaged as follows:- ( WILL BE GIVEN IN DUE COURSE) FACILITIES PROPOSED TO BE PROVIDED: Initial teething problem the company experienced difficulty in organizing the delivery of the goods as needs to the valued customer due to dependents with the co-manufacturers and non availability of fund. The factory will have the other facilities modern factory. PROJECT COST: The company proposes to approach the Financial Institutes for financial assistance for the purchase of machinery and equipments, building and civil works, misc, fixed assets, pre-operative expenses, margin money for working capital. The cost of plant and machinery and misc. fixed assets estimated at Rs.80.39 lakhs inclusive of taxes, carriage, transportation, packing, forwarding, insurance charges etc, All the equipments will be available indigeneously. The detail list of equipments is enclosed herewith. FACILITY PROPOSED IN THE PROJECT: The proposed Drug Formulation industry aims at providing medicine for various diseases as discussed. The various sophisticated equipments proposed in the project and their uses in the proposed center. The unit in a position to tackle the growing demand for proper supply. Due to constant marketing and market development and advancement of technology and where MARKET IS READY FOR SALE, the facility of the project is so essential for setting up formulation factory. COST, PROFITABILITY AND OTHER FINANCIAL ASPECTS OF THE PROJECT: The financial projections for a period of 6 years operation of the unit and various ingredients of the cost of operation and annexed to the report. The cost of such ingredient have been taken report on the basis of the present price structure. The profitability has been worked out on the basis of production programme indicated assuming the production at 40% of the installed capacity in the first year, 50% in the second year and 60% in the third year and 70% in 4th year and onwards. RAW MATERIALS: The total requirement of raw materials after considering process loss @ 5% has been worked out as shown. The total cost of raw materials has been estimated at Rs.477.20 lakhs at 100% capacity. Utilisation and will vary in the same proportion at other utilization levels. PACKING MATERIALS: In Pharmaceutical industry, the cost of packing materials is one of the major components in the cost of manufacture. The cost of packing materials(inclusive of bottles, caps, lebels, which are generally considered as a part of raw materials) at 100% capacity utilization has been estimated at Rs.283.08 lakhs and will very in the same proportion at other capacity utilization level. The details estimate of the packing materials are shown. POWER AND FUEL: The cost of power based on the total connected load of 18 KW has been estimated at Rs.0.86 lakhs per annum as shown. MANPOWER AND PLANNING: The total manpower in the project will be 123 Nos. of persons as shown below: 1) Sales and marketing staff 49 2) Office Staff 16 3) Factory Staff 9 4) Factory workers/staff 40 5) Administrative staff 3 6) Distribution staff 6 ____ 123 ____ All the required manpower including the executive will be available locally. WATER: The requirement of the water for the factory and for other purpose involved and hence no effluent treatment measures are necessary as no hazardous effluent are committed in the unit. SCHEDULE OF IMPLEMENTATION: The major activities and their implementation schedule is shown as under: (URL removed). Activity From To 1) Site Development 2) Civil works including factory godown. Boundary wall 3) PLANT AND MACHINERY: Placement of orders 4) Receipt of the plant and machineries & other equipment at site 5) Arrangement of raw materials 6) Arrangement of power 7) Installation of machinery 8) Manpower training 9) Trial Run 10) Commercial Production from the factory 11) Commercial production from Co-Manufacturers Already processing PROCESS OF MANUFACTURE: The basic process of manufacturing of Tablets and oral liquids are given below: 5.01 Tablets: Tablets can broadly divided into three classes i,e, compressed tablets, sugar coated tablets and entire coated tablets. In the present manufacturing project only two classes of tablet would be prepared. a) General Process: The general process of making compressed tablets are:- i) Direct compression ii) Slugging and iii) Wet Granulation The ingredients that goes into the preparation of a tablet are mixed with some adhesive substances which are called binders. To improve the flow properties of granules in the hopper of the tablet machine. Flow regulators or glidents are added. A lubricant sometimes become necessary to over, come the tendency of the tablet to stick to the punches and dies. For proper disintrigation of the tablet in the system a disintigrator is to be added. If the total quantity of the material become insufficient for proper size of tablets. b) PREPARATION OF SLUGGING: When tablet ingredients are sensitive to moisture or can not stand temperature drying digging and when the tablet ingredients are having binding and cohesive properties, slugging is used to form granulations. It consists of precompressing the dry mixed ingredients with lubricants into sludge which are subsequently connected to the correct size of the granule and recompressed. c) PREPARATION BY WET GRANULATION: In this process, the power ingredients are weighed and blended thoroughly. The powder blend is then shifted through a screen of suitable fineness to remove or break up the lumps. The powder blends are then shifted through an escidlating granulator which brusics the minerals through a screen. Moist materials from the granulater are sprayed in this layer on large sheets of craft paper on shallow wire rays. The dried granules are compressed in tablet punching machine and thus uncoated tablets are prepared some of the tablets are required to be coated to protect the ingredients against the atmospheric oxyten or carbondioxide, to mask uppleasent taste and odour, to improve the appearances of unlocated tablets and to control the site of action of the drug etc. The steps involved in sugar coating may be sub-divided into the following: 1) Wated profing and sealing 2) Sub-coating 3) Runding 4) Colouring and finishing and 5) Polishing Often, the water proofing and sealing step is omitted, but with sensitive substances such as vitamin mixtures it is included. The water proffing is usually made up with arsenic free sheelac. Sub-coating involves alternately wetting the tablets with sub-coating solution and when particularly dry, sprinkling with dusting powder. This cause the tablet to be rapidly filled out. Rounding or smoothing involves application of heavy syrup so that a hard smooth surface is produced, colouring and finishing involves application of thinner coloured syrup in order to build up the tablet further and obtain the desired share of colour. ANNEXURE-XIX PROCESS FLOW CHART Receipt of materials Materials stores Sampling of all materials Qualification of received Raw materials Finalisation of components For formulations Rejected components & Materials stores. Weights and measuring of Components Mixing Granulations Compounding and processing TABLETS LIQUID SUSPENSION a) Tabeling a) Mixing b) Compressing b) Stirring c) Coating c) Filteration d) Inspecting d) Components preparation e) Filling f) Sealing g) Visual Inspection STORAGE BEFORE QUALITY CONTROL STORAGE BEFORE PACKING FILLING, SEALING AND PACKING FINISHED GOODS QUALITY INSPECTION FINISHED GOODS QUALITY INSPECTION FINISHED PRODUCT STORAGE LIBORATORY CONTROL EQUIPMENT WASHING AND CLEANING PLANT CAPACITY: The company proposes to manufactures formulations such as (i) Tablet, and (ii) Oral Liquids. In tablet section, based on the capacity of the tablet making machine having a capacity of 250-400 tablets per minute. The unit will be able to manufacture 1.2 lakhs tablets per day on single shift working. The oral liquids section has a filling machine, the capacity of which is 40 bottles per minutes. Thus the capacity of the unit will be 19200 bottles per day on single shift working. Accordingly, the annual installed capacity of the unit based on 300. Working days in a year has been estimated as below:- INSTALLED CAPACITY: PRODUCT PER DAY PER ANNUM TABLET 1.2 LAKHS NOS. 360 LAKHS NOS ORAL LIQUID 19200 BOTTLE 57.00 LAKH BOTTLES CAPSULES NOS 05.40 LAKHS TUBES OINTMENT 1200 TUBES 3.60 LAKHS TUBES The capacity utilization of the unit in the 1st year, 2nd year, 3rd year and onwards has been estimated at 40%, 50% and 60% respectively and accordingly the annual production of the unit will be as below:- YEAR CAPACITY ANNUAL PRODUCTION UTILISATION TABLE ORAL LIQUID (LAKHS NOS) 1st 40% 180 28.50 2nd 50% 198 31.55 3rd 60% 216 34.20 4th and onwards 70% 252 39.90 Although the unit will be capable of producing at much higher capacity, for the purpose of economic viability projections the above capacity utilization has been considered. TECHNICAL FEASIBILITY: 1) AVAILABILITY OF TECHNICAL : The technical know how of this project is available with the entrepreneur. 2) COLLABORATION IF ANY : NIL 3) TECHNICAL QUALIFICATION : As stated in the Bio-Data the entrepreneurs AND EXPERRIENCE OF THE are technically qualified and marketing ENTERPRENEUR as well as distribution net work of Pharmaceutial sales. 4) AVAILABILITY OF PLANT & MACHINERY : The plant and machinery are indigeneously available. The main manufacturer and suppliers are as follows:- 1. M/s United Engineering(Calcutta) 2. M/s Clit India(Bombay) 3. M/s Asoka Enterprise(Calcutta 4. M/s New Salcon Scientific Concern(Calcutta) 5. M/s Pharma Pack(Bombay) 6. M/s Pam Machinery Company(Bombay) 7. M/s Adair Dutta & Sons (Calcutta) 8. M/s Geolite India Ltd(Calcutta) 9. M/s Gansons Engineers Pvt. Ltd.(Madras) 10. M/s The Scientific Apparatus Company (Calcutta) 5) EXPECTED LIFE OF MACHINERIES : 15 years and above 6) AVAILABILITY OF RAW MATERIALS :Indigeneous(all are available in the . . local market of Calcutta, Bombay, . Hyderabad and Damau Free Port. 7) STANDARDISATION OF QUALITY :Quality Control arrangement both for CONTROl raw materials and Finished product have been provided in the project. ORGANISATION CHART BOARD OF DIRECTORS MANAGING DIRECTOR DIRECTOR FINANANCE DIRECTOR MARKETING DIRECTOR PRODUCTION MANAGER MARKETING MANAGER PRODUCTION MANAGER CHIEF CHEMIST ACCOUNTS OFFICER REGIONAL REGIONAL QUUALITY MANUFACTURING ACCOUNTS RECEPTIONIST SALES SALES CONTROL CHEMIST ACCOUNTANTS OFFICE MANAGER MANAGER CHEMIST CLERK ASSTT. STENO ETC. AREA AREA MANAGER MANAGER SALES SALES PROFESSIONAL PROFESSIONAL ASSTT. (URL removed)MIST SERVICE SERVICE REPRESENTATTIVE REPRESENTATIVE SKILLED LABOUR WORKERS STORES INCHARGE WORKERS AMOUNT Rs. in lakhs CHAPTER-II NON-RECURRING EXPENSES A) LAND Cost 2.50 registration fees -0.20 2.70 B) CIVIL CONSTRUCTION I) Main factory shed ground floor (URL removed). @ Rs.400.00 per (URL removed). 26.00 1st Floor 2724 (URL removed). 350.00 9.53 35.53 ii) Godown 595 (URL removed). @ Rs.300.00 per (URL removed). 1.79 iii) Boundary wall 750 (URL removed). @ Rs.200.00 per (URL removed). 1.50 iv) Culvert , Main gate and security room 1.50 v) Overhead R.C.C. water reservoirs including deep tube wells pumps 6.00 vi) Internal road, development work etc. 3.50 49.82 C) PLANT AND MACHINERY I) Tablet section 23.12 ii) Liquid and oral section 12.02 iii) Ointment section 2.22 iv) Capsules section 1.70 Total 39.06 Add: S.T. Insurance, Freight Charges, packigng and (URL removed)y @ 12% 4.69 43.75 D) OTHER FIXEED ASSETS I)Scientific Instruments 6.15 ii) Books and Peeriodicals 0.65 iii) Other accessories 0.97 iv) Quality Control Equipments 2.02 v) Blocks, Dies and Cylinder 2.28 12.07 E) INSTALLATION AND ELECTRICALS I) Electrical Equipments 2.34 ii) Generator(50 KVA) 7.15 A.C. & other utilities iii) Security deposit to SEB 5.00 iv) Cost of installation 3.00 17.49 F) FURNITURE & FIXTURES 3.29 G) PRELIMINARY AND PREOPERATIVES 12 H) CONTINGENCIES @ 3% ON NON-FIRM COST 3.79 Total 144.91 ALLOCATION OF CONTINGENCIES UNDER DIFFERENT FIXED ASSETS (URL removed)., Particulars Cost Contingencies @ 3% Total Cost 1) Factory and other construction 49.82 1.49 51.31 2) Platnt and machineries 43.75 1.31 45.06 3) Other fixed assets including Electrification 32.85 0.99 33.84 and installation & Fuurniture and fixture Total 126.42 3.79 130.21 DETAILS OF PRE & PREOPERATIVE EXPENSES 1) Papers, documentation, legal fees and contingency fees 3.00 lakhs 2) Initial expenses 0.60 lakhs 3) Interest on loan @ 17.5% 8.00 lakhs for the construction period 4) Other Misc. expenses like travelling, 0.40 lakhs printing, stationery, postage etc. 12.00 lakhs ALLOCATION OF CONTINGENCIES UNDER DIFFERENT FIXED ASSETS (URL removed). Particulars Cost Contingencies @ 3% Total Cost 1) Factory and other construction 49.82 1.49 51.31 2) Platnt and machineries 43.75 1.31 45.06 3) Other fixed assets including Electrification and 32.85 0.99 33.84 installation and furniture and fixture TOTAL…………… 126.42 3.79 130.21 DETAILS OF PRE & PREOPERATIVE EXPENSES: 1) Papers, documentation, legal fees and 3.00 lakhs contingency fees 2) Initial expenses 0.60 lakhs 3) Interest on laon @ 17.5% for the 8.00 lakhs constuction period 4) Other Misc. expenses like travelling, printing, 0.40 lakhs stationery, postage etc. 12.00 lakhs ANNEXURE-I LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification Power Unit Unit Price Amount Manufacturer/ Suppliers Mas Mixter Capacity-50kg 5HP 1 99000.00 99000.00 Cadmach Machinery Co. Drying oven Capacity-24 trays with MS. Trays 24 extra 1HP One & half 58500.00 58500.00 Asoka Enterprise Fluid Bed Dryer 1 158700.00 158700.00 do Multi Mill 3HP 1 85000.00 85000.00 Cadmach Machinery Co. Granulator/Oscillating GNP Model 2HP 1 49500.00 49500.00 do 2G, 16 (URL removed)ary Tablet pubching m/c. Out put 260 to 450/Min 2HP 1 92500.00 92500.00 do Die-punch sets(3 sets) D.S.1/2" Concave 3 sets 60000.00 60000.00 do Tablets coating machine 36" dia 1 83125.00 83215.00 Gansons Ltd Tablets polishing pen 1 11875.00 11875.00 do a) Blister packing machine with one set of change parts PHARMAPACK 150 ch 2 432400.00 Pharmapack/Ashoka Ent. 8 71600.00 572800.00 do b) Right complete set of change parts(additional) ( The above blister pack machine will be used in tablet and capsule products of all range) c) Water cooler-120 litrs/(URL removed) 18 degree C-20 degree C-3 Bar clit deduster Clit deduster 1 44000.00 44000.00 do 1 31000.00 31000.00 do 1 31000.00 31000.00 do Dust extractor unit-150 degree C with nozzle 1 19000.00 19000.00 Cadmach Machinery Co. Dist for tablets and capsule 1 48400.00 48000.00 do Tablet disintrigation measurement apparatus 1 17250.00 17250.00 Addair Dutta & Sons Pireability Test apparatus 1 17250.00 17250.00 do 2312300 Rs.23.12 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Bottle washing machine 4 heads with 24 rinser 1/2 HP, 1 Unit 22,050.00 22,050.00 Ashoka Enterprise Stirrer(Industrial) Drying Oven 3 HP 2 Unit 23085.00 1/2 HP 15870.00 39675.00 do Capacity 24 rays 1 HP, 1 Unit with 24 extra. Trays 58500.00 59500.00 do Snerkler filter 12 bed(Horizontal) 1 H.P. Unit 1 59500.00 59500.00 do Storage Tank ( SS Vat) Capacity 2000 Lts(1 unit) 75900.00 75900.00 do do 1000 lts(2 units) 43000.00 86000.00 do 500 lts( 2 units) 30350.00 60700.00 do 300 lts(2 units) 22750.00 45500.00 do 200 lts(2 units) 17700.00 35400.00 do 100 Lts(2 units) 10750.00 21500.00 do Collied Mill 12" dia water Jacketted 3 HP(1 Unit) 62700.00 62700.00 Cadmach M/c. Co. Inline Liquid ROPP Cap sealing checking gumming machine fully automatic with conveyer Belt(complete set) United Engineering Works a) Semi automatic 2 head vacuum typeModel (V.L.F.4)1/2 HP/3 Phase/AC/440 bottle filling machine % HP(2 Unit) 33050.00 66100.00 do b) Two head volumetric bottle filing M/C.0.7 KW / Phase/440V/AC(2 Unit) 30400.00 60800.00 do c) Two SS. Cyringe for two head volumetric bottle filling machine 0.7 KW/3 phase/440 V/AC(1 unit) 46250.00 46250.00 do Total …………. 740575.00 ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers e) Hand operated Caping m/c 1 unit 16500.00 16500.00 United Engineering Works f) 28" Conveyor with motor reduction gear box and starter 1 unit 92575.00 92575.00 do g) Semi automatic HOPP caping machine with 0.5 HP motor and reduction gear box sturter(Model CM.I) 1 unit 47000.00 47000.00 do h) Semi Automatic inspection table 1 unit 37000.00 37000.00 do I) Semi automatic label gumming and pasting machine and motor 0.5 HP/AC 3 Phase/440V(Model L.C.P.1) 1 49600.00 49600.00 do j) Changeable parts for above machine 1 31050.00 31050.00 do k) Turn Table(unscramble) Model TT-30 1 35700.00 35700.00 do l) Deminerised water treatment plant (I) Capacity-1000 1 tr. Per hour 1 72450.00 72450.00 do 47600.00 47600.00 do ii) Capacity-500 ltr. Per hour 1 31750.00 31750.00 do Total 461225.00 B/f 740575.00 Total …………. 1201800.00 Rs.12.02 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Steam jacketed vat. Capacity-1000 lts 1 unit 45450.00 45450.00 United Engineering Works Autoclave 22" dia x 30" deep power 6 KW 1 unit 30800.00 30800.00 Addiar Dutta & Sons Triple Hollar Mill Size: 100x300 MW with motor 1 HP 440/Volt/3 Phase, 20 KW per hour 1 Unit 59500.00 59500.00 Asoka Enterprise Tube Filling, Sealing and batch printing machine Semi automatic 1 unit 60850.00 60850.00 United Engineering Works Extra for crimping and eoding device 2 Unit 12650.00 25300.00 do Total ……….. 221900.00 Say Rs.2.22 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Cone mixer Capacity 25 kg., 1 HP 2 Unit 42320 84640 Asoka Enterprise Vacuum pump for capsule leak echecking 1/2 HP, 1 Unit 9200 9200 do Capsule fillint machine Capacity-300 holes(Manusal operated) M.F. 30.2 Unit 33195 66390 Pam Machinery Co. Physical Balance 1 Unit 10120 10120 Addair dutta and sons Total 170350 Say Rs.1.70 lakhs STATEMENT OF SCIENTIFIC INSTRUMENT WITH MICROBIOLOGICAL SET UP (URL removed). Name of instrument Specification Unit 1) U.V. Spectro Photometer PC based stable beam UV-VIS spectro photomotor model GS 5702 1 2) Digital PG Meter 1 3) Melting Point apparatus 1500 1 4) Drying Oven(15"x15"x18") 5) Heating mantle-2 litres 550 watts 6) Double cell eletric colourimeter 1 7) Incubator(24"x24"x30") S.S. 1 8) Digital balance(Electronic) 1 9) Table top centrifuge(Electrical) 8x15ml tubes 1 10) Magnetic Stirrer 1 11) Hot air blower 1 12) Ultra violet ceracidal lamp 1 13) Polarimeter for 200mm tubes 1 14) Infrareo moisture balance 1 15) Refrawmeter 1300 to 1700 range 16) Chemical balance 1 17) Vaccum pup-capacity 30 litres/min 1 18) Constant temperature water bath 18"x12"x10" 1 19) Thermostatic water bath 16"x12"x7" 1 20) Simple retary stirrer Speed 4000 R.P.M. 1 21) Hot Plate 18"x12" 1 22) Tulu pump 1 23) 1 KVS Serve voltape stabilizer 1 24) Tect dry 7 sterilising over 12"x12"x14" 25) Auto distillation applicances 8 lit/hour-8 KW ANNEXURE:2(CONTD….) (URL removed). Name of instrument Specification Unit 26) T.L.C. Hit with (URL removed)p 1 27) Flourimeter 1 28) Laminer flow 1 29) Kearl Fisher Titrator 1 30) Deeps apparatus 1 31) Travelling microscope 1 32) Naphellometry 1 33) Vaccum drier 1 34) Vaccum Desicator 1 35) Auto clave 1 36) Muffle farness 1 37) D.T. Measurement apparatus 1 38) (URL removed)surement apparatus 1 Total Cost 6.15 lakhs ANNEXURE:3 STATEMENT OF BOOKS AND PERIODICALS (URL removed). Name Unit 1)` Indian Pharmacopoea(Volume 2) 2 2) British Pharmacopooea(Volume 2) 2 3) US & NF Pharmacopoea 1 4) The Extra Pharmacopoea(Martindale) 2 5) Remington Pharmaceuticals 1 6) Goodman and Gilman(the Pharmaceutical basis of Therapeutics) 1 7) Marckined 1 8) Good Manufacturing practice 1 9) Others Government acts and rules 2 Total 0.65 lakhs ANNEXURE-4: Statement of Other Accessories (URL removed). Specification Qty Rate Amount 1) S.S. Pipe lining for supply of (URL removed)er to different section …. ….. 20,000 2) Wooden platform for raw materials and packing materials stores 2 nos 1000 2000 3) Wooden tabe for quality control department and manufactturing unit For analysis 2 nos 6000 12000 For Instruments 4 nos. 2000 8000 Packaging table 6 nos. 4000 24000 4) Wooden pack for raw materials stores and packing materials stores 8 nos. 2000 16000 5) Pollythene Vat. Capacity-100 litres 20 nos. 250 5000 6) Pollythene bucker, capacity 25 litres 10 nos. 215 2150 7) Pollytthene tray(for bottle) 50 nos. 150 7500 8) Pollythene Balti 10 nos. 30 300 9) Pollythene Mug-Capacity 1 litre 20 nos. 10 200 Total …….. 97150 Say Rs.0.97 lakhs ANNEXURE: 5 STATEMENT OF QUALITY CONTROL ARRANGEMENT:: ANALYTICAL SECTION AMOUNT A) Wooden furniture 30,400 B) Electrical equipments 14,500 C) Other than eloetrical equipments 21000 D) Other common laboratory 17730 E) Glass apparatus 59940 F) Analytical reagents 58000 Total 201570 Say Rs.2.02 lakhs ANNEXURE: 6 STATEMENT OF BLOCKS, DIES AND CYLINDER Sl. No. Description Qty Rate Amount 1) Zinc blocks for samples catch cover 14 1500 21000 2) Zinc blocks for samples catch cover 11 2000 22000 3) Zinc blocks for labels 11 800 8800 4) Zinc blocks for labels 14 1200 16800 5) Metal cylinder for stripping materials/poly paper or Aluminium foils 14 8000 1,12,000 6) Blocks for tubes of ointment in different sizes 5 2500 12500 7) Die-punch storage trays(18 gauge) 10 2500 25000 8) Bottle mould 2 sets 5000 10000 228100 Say Rs.2.28 lakhs ANNEXURE: 7 STATEMENT OF ELECTRICAL EQUIPMENTS: Description Specification Rate Quantity Amount Exhaust fan 16" dia, 20 nos. 1500 30,000.00 Fan/Ceiling 48" length 40 nos. 800 32000 Wall/Bracket fan 16" dia, 10 nos. 800 8000 Padestal fan Big size 4 nos. 4100 16400 Industrial tube sittings 1 set 50 nos. 550 27500 Capacitor 1 no. 20000 20000 Other electrical equipments with complete wiring) factory, office, godown etc. L.S. 100000 Total ……….. 233900 Say Rs.2.34 lakhs ANNEXURE:8 STATEMENT OF UTILITIES: Name of utilities Specification, Quantiy Unit Price Amount Airconditioner Capacity 1 ton 10 nos 25000 250000 Debmudifer 2 nos. 46000 92000 Refrigerator Capacity 165 ltr. 2nos. 9000 18000 Generator set Capacity 50 KVA 1 no. (Phone # removed)00 FIRE FIGHTING ARRANGEMENTS: FIRE EXTINGUISHER Chemical vapour type 10 nos. 800 8000 Fire fighting bucker 10 nos. 200 2000 Washing Balance(Avery) Capacity 50 kgs 1 no. 48000 48000 Washing Balance(Avery) Capacity-10 KG 1 no. 22000 22000 Troller((URL removed)ting) 2 nos. 6000 12000 Gear pump Capacity 1 no. 1/2 HP 5100 5100 Total 715100 Say: Rs.7.15 lakhs ANNEXURE-9: STATEMENT OF FURNITURE AND FIXTURE Name of articles and specification Quantity reqd. Rate/Unit Amount Table-Secretariate type(full) 20 3000 60000 Table-Secretariate type(Half) 40 2000 80000 Chair-Special type 20 nos. 800 16000 Chair-Special type 40 nos. 600 24000 Chair-Special steel(with arms) 150 nos. 300 45000 Chair-Steel Chair(without arms) 50 nos. 220 11000 Almirah-Steel Office type 20 nos. 2000 40000 File cabinet-Steel(Office use) 4 nos. 4000 16000 Wooden tools 10 nos. 200 2000 Type writer 4 nos. 8000 32000 Calculator 10 nos. 300 3000 Total………. 329000 Say: Rs. 3.29 lakhs CHAPTER-III RECURRING EXPENSES: I) COST OF RAW MATERIALS: Products name` Name of raw materials Unit rate Monthly requirements Cost Hilcer suspension in 170 ML bottle D.G.L.I.P. 400X523 kg 2.09 Dimethyle polysiloxane 400x27kg 0.11 I.P. dried aluminium hydroxide 50x880kg 0.44 Gel I.P Magnesium Hydrooxide B.P. 45x880kg 0.4 Hilcer plus susp. 120 ML bottle G.G.L>I % P 400x175kg 0.7 Andys suspension 50 ML bottle Metronidazole benzeati P 77x110kg 0.77 Furazolidone IP 750x44 kg 0.33 Diloxanide Furoate IP 650x110kg 0.72 Neufen plus suspension 50ml bottle Paracetamol IP 189x18kg 0.03 Nualka syrup 100ml bottle Disodium hydrogen citrate IP 100x440kg 0.44 Cramolytic syrup 200 bottle Rungal diastase(1:1200) 1000x44 kg 0.44 Pepsin(1:13000) 1080x44kg 0.48 Weak ginger BP 1000x4.5kg 0.05 Conc. Cinnamol water DP 1200x4.5kg 0.05 Ajowan Oil IP 2500x4.5kg 0.11 Comp. Cardamon 800x4.5kg 0.04 Papf plus syrup 180 ML Bottle Cyproheptadine hydrochloride U.S.P. 26000x9 kg 2.34 Tricholine citrate 100 x17.76 kg 1.78 Llysin monohydrocloride IP 265x440kg 1.17 Thaimine hydrocloride IP 3000x6.5kg 0.2 Riboflavine IP 4500x6.5kg 0.29 Pyridoxine Hydrocloride 4000x4.5kg 0.18 13.16 Products name Name of raw materials Unit rate Monthly reqd. Cost Papf plus drop Cyprophepatadine Hydro Chloride IP 26600x2.2kg 0.59 Llysis Monohydrochloride USP 265x44 kg 0.12 Tricholine citrate 100x176kg 0.18 Thiamine Hydrochloride I.P. 3000x4.5kg Ribiflavine IP 4500x4.5kg 0.01 Pyrodoxine Hydrochloride IP 4000x4.5kg Green lit syrup Tricholine cittrate 100x1760kg 1.76 Kalamegh liquid extract B.P.C.886 600x22kg 0.13 Thiamine Hydrochloride IP 3000x6.5kg 0.2 Riboflavine IP 4500x6.5kg 0.29 Pyrodoxine Hydrochloride IP 4500x4.5kg 0.2 Green Liv drops Kalamegh liquid extract IP 66 6600x4.5kg 0.3 Tricholine citrate 100x176kg 0.18 Thaimine Hydrochloride IP 3300x440gm Riboflavine IP 4500x440 gm Pyridoxine HCL IP 4000x440gm 0.05 4.01 B/f 13.16 17.17 c/o Product name Name of raw materials Unit rate Month reqd. Cost Protchem syrup None tronic feric ammonium citrate 200x88kg 0.18 Casein Hydrolsate 20% 210x440kg 0.92 L-Lysis monohydrochloride USP 265x35 kg 0.09 Pyridoxine Hydrochloride IP 4000x1.1kg 0.04 Folic Acid 5000x450kg 0.02 Zinc sulphate 100x9kg 0.02 Calcium Gluconate 200x9kg 0.02 Vitamin D3 2000x220 IU 0.01 Vitamin B12 3000x220gm 0.01 Liv Long syrup 200 ML bottle Trichline citrate 100x308kg 0.31 Sodium Taurodycocholate BPC 300x200kg 0.07 (URL removed)hionine 300x5 kg 0.02 Vitamin BI IP 3000x1.1kg 0.03 Vitamin B2 IP 4500x1.1kg 0.05 Vitamin B12 IP 3000x50kg Kalamegh IP '66 600x4.5kg 0.03 93883535 kgs 19.02 MONTHLY REQUIREMENT ANNUAL REQUIREMENT 112.66 MT 228.24 ADD: PROCESS LOSS @ 5% 5.63 mt 11.41 118.29 MT 239.65 Add: Packing, forwarding and transportation charges etc. @ 3% 7.19 TOTAL ANNUAL COST 246.84 B) FOR TABLETS Products name Name of the raw materials Unit rate Monthly reqd. Cost Neufen plus tablet Ibuprofen IP 600x225 kg 1.35 Paracetamol IP 180x225 kg 0.41 Ceffein Aunydrops IP 600x15kg 0.09 Diloxanide Furate tablet Diloxanide Furoate 650x150kg 0.98 Metronidazole 200 MG TABS Metronidazole IP 680x125kg 0.85 Almole tablet Paracetamol IP 180x250kg 0.45 Ibuprofen 200mg tablet Ibuprofen IP 600x100mg 0.6 Papf plus tablet Cyprohepadins FCL USP 2600x25kg 0.65 Chloline bitrate 600x5kg 0.03 L-Lysine monohydrochloride 265x62.5kg 0.17 Vitamine bl IP 3000x500gm 0.02 Vitamine B/6 IP 4000x500gm 0.02 Vitamine B/2 IP 4000x500gm 0.02 Bone Cal Tablet Calcium Carbonate IP 95x500gm 0.48 Vitamine D/3 3000x25gm Timed Tablet Tetracycline HCL IP 1600X175KG 2.8 Metronidazole IP 689x225kg 1.55 Green Liv tablet Cholin bittrate 600x25kg 0.15 Bile Salt BPC '54 200x25kg 0.05 D-L-Methiopnine 300x1.25kg Vitamin B/12 IP 3000x25kg Vitamin B/1 3000x500kg 0.02 Vitamine B/6 IP 4000x500kg 0.02 Vitamine B/2 IP 4000x500kg 0.02 Timed IV Tablet Metronidazole IP 68x125kg 0.09 Tetracycline HCL IP 1600x75kg 1.2 Dilomanide Furoate IP 600x125kg 0.75 MONTHLY REQUIREMENT 24370250KG 12.77 ANNUAL REQUIREMENT 29.24 mt 153.24 Add: Process Loss @ 5% 1.46 MT 7.66 TOTAL 30.7 160.9 Add: Packing, forwarding and transportation etc. @ 3% 4.83 TOTAL ANNUAL COST 165.73 C) FOR CAPSULES Products name Name of raw materials Unit rate Monthly reqd Cost Alnadex capsules 0 3500 1.2kg 0.04 Vitamin B/2 3000 1.2kg 0.04 Nicotinamide 400 12kg 0.05 Cal-Panthonat 400 6kg 0.02 Vitamin B/6 2500 0.36kg 0.01 Vitamin B/12 300 0.18gm Folic Acid 300 1.8kg 0.01 Vitamin C 800 18kg 0.14 Lactobacilins 460 48kg 0.22 Zince Sulphate 115 6kg 0.01 Starch 10% 10 4.8kg Tale 1% 30 4.8kg 0.01 Magnesium Stcarate 30 0.48kg 50 0.48kg Almox capsules(500) Amoxicillin 3500 30kg 1.05 Lactose 10% 30 3kg Starih 10% 10 3kg Magnesium Stcarate 1% 50 0.3 0.01 Tale 1% 30 0.3 Almox 250 Amoxicillin 3500 30kg 1.05 Lactose 10% 30 3kg Starih 10% 10 3kg 0.01 Magnesium Stcarate 1% 50 0.30kg Tale 1% 30 0.3 Lactotetra 500 Tefracy Cline hcl 1625 60kg 0.98 Lactobacilli 460 4.8kg 0.02 Lactose 10% 30 6kg Starch 10% 10 6kg Talc 1% 30 0.60kg Magnasium Stearate 50 0.60kg 0.01 3.68 Products name Name of raw materials Unit rate Monthly reqd. Cost Prutohen cap Ferrous Finatate 250 2.4kg 0.07 Vitamin B/2 3000 0.30kg 0.01 Vitamin B/12 300 0.90kg Vitamin B/6 3000 0.18kg 0.08 Vitamin C 800 9kg Folic acid 300 9kg 0.03 Lilysim mono HCL 525 6kg 0.03 Dioclyi Sodium sulpho Snceinate 260 3kg Starch 10% 10 5.2kg 0.01 Lactose 10% 30 5.2 Magnesium Sterate 1% 50 0.52 Tale 1% 30 0.52 0.23 B/f 3.68 MONTHLY REQUIREMENT 2934630kg 3.61 ANNUAL REQUIREMENT 35.22 MT 45.72 ADD: PROCESS LOSS @ 5% 1.76 2.29 TOTAL 36.98MT 48.01 Add: PACKING, FORWARDING, TRANSPORT ETC .@ 3% 1.44 TOTAL ANNUAL COST 49.45 D) FOR OINTMENT Product name Name of the raw materials Unit rate Monthly reqd. Cost Stanan Cream Cotrimazole 2600 0.30kg 0.01 Betname Thatone 4500 15kg 0.07 Genetamycin 4500 30kg 0.14 Propyline Glycol 450 10 0.04 Cream 400 10 0.04 Other inactive ingredient xx XX 0.01 Burnex Ointment Kitrofurazone 750 240GM 0.18 Silver Sulphadine Giluconate 10 240gm 0.02 Propyline Gllyeol 400 20kg 0.08 Cream Lanocim 200 20kg 0.04 Bactosprim Ointment Polymixine B Sulphate 450 15kg 0.07 Zine baeitracin 200 0.12kg 0.05 Prophline Glycol 450 10kg Newmycin Sulphate 300 10.2kg 0.03 Cream base 200 10kg 0.02 Ascoi Ointment Gama benzine mexachiorid 800 3kg 0.02 Cetrimide 600 7.5kg 0.02 Providine Iodine 200 7.5kg 0.02 Meclop Veginale Ointment Matronidavole 660 0.12kg 0.02 Clotrimazole 2600 0.6kg Povidine Iodine 200 15kg 0.03 Propyline Glycol 450 10kg 0.05 Cream base and other inactive ingredient 200 10kg 0.02 Monthly requirements 75.934kg 1.17 ANNAUL REQUIREMENT 9.11KG 14.04 ADD: PROCESS LOSS @5% 0.46KG 0.7 TOTAL 9.57KG 14.74 ADD: PARKING, FORWARDING TRANSPORT @ 3% 0.44 TOTAL ANNUAL COST 15.18 TOTAL COST OF THE RAW MATERIALS (P.A.) (AT 100% CAPACITY UTILISATION) (Rs. in lakhs) TOTAL OF GROUP A 246.84 TOTAL OF GROUP B 165.73 TOTAL OF GROUP C 49.45 TOTAL OF GROUP D 15.18 TOTAL 477.2 1ST YEAR @ 40% CAP 190.88 2ND YEAR @ 50% CAP 238.6 3RD YEAR @ 60% CAP 286.32 4TH YEAR @ 70% CAP 334.04 ii) ANNAUL REQUIREMENT AND COST OF PACKING MATERIALS (AT 100% CAPACITY UTILISATION) Name of the packing materials Monthly reqd Average rate Monthly cost A) FOR ORAL LIQUID BOTTLE 530 2.25 11.93 P.P. CAPS 530 0.25 1.33 CARTOON 352 1 3.52 LABEL 575 0.2 1.15 CORRUGATED BOX 18 17 3.06 OTHER PACKING MATERIALS XX XX 0.1 TOTAL 21.09 B) FOR TABLET STRIPS ALUMINIUM FOIL 300kg 150/kg 0.45 POLLY PAPERS 400kg 80/kg 0.32 02) PRINTED PLASTIC CONTAINER a) Container of 30 tabls 25500 nos. 3 0.77 b) Container of 500 tabls 1530 nos. 8 0.12 03) Cartoons 15200 nos. 1 0.15 TOTAL 1.81 Monthly reqd Average rate Monthly cost G) FOR CAPSULE EMPTY GELATIN CAPS 216000 PCS 80.00 1000 pcs 0.17 ALUMINIUM FOILS 135kg 150kg 0.2 BOX OF 100'S CAPS 600 pcs 3.00 pcs 0.02 BOX OF 20'S CAPS 1500 box 1.00 pcs 6000 box 0.50 pc BOX OF 30'S CAPS 2000 box .50 pc 0.05 GUM ADHESIVE ETC. L.S. 0.01 TOTAL….. 0.46 D) FOR OINTMENT TUBES OF 5 GM 10500 .40/PC 0.042 TUBES OF 25 GM 3000 .60/PC 0.018 TUBES OF 10GM 9000 .60/PC 0.054 CARTOON OF 5GM TUBES 10500 .40/PC 0.042 CARTTON OF 10GM TUBES 9000 .60/PC 0.054 CARTOON OF 25GM TUBES 3000 .60/PC 0.018 OUTER CARTOON OF 50'S 360 1.00/PC 0.004 TOTAL 0.232 TOTAL MONTHLY COST OF PACKING MATERIALS 23.59 Total annual cost of packigng materials at 100% Capacity 283.08 SO, at 40% cap(1st yyear) 113.23 50% cap(2nd year) 141.54 60% cap(3rd year) 169.85 70% cap(4th onwards) 198.16 III) STATEMENT OF SALARY AND WAGES IN TOTAL (URL removed). Particulars Nos. of Heads Amount 1) Office Staff 16 327600 2) Sales and Marketing Staff 49 919800 3) Administrative Staff 3 163800 4) Distribution Staff 6 84420 5) Factory staff 40 665280 6) Labortory(Workshop) Staff 9 352(Phone # removed)700 Say Rs.25.14 lakhs N.B. There will be an opening for 123 heads in the 1st year and cost for Salary and wages will be Rs.25.14 lakh. A provision for 5% increase has been considered from 3rd year and+A649 onwards. Statement of Salary of Office Staffs NOS PAY SCALE AMOUNT ACCOUNTS OFFICER 1 4000 4000 ACCOUNTANT 1 2000 2000 ACCOUNTS CLERK 4 1500 6000 OFFICE ASSISTANT 4 1500 6000 STENOGRAPHER 1 1800 1800 RECEPTIONIST 1 1500 1500 TYPIST/CLERK 2 1500 3000 OFFICE PEON 2 850 1700 TOTAL 16 26000 YYEARLY(Rs.26,000x12) 312000 Fringe benefit-5% 15600 Total 327600 STATEMENT OF SALARY OF MARKETING AND SALES STAFFS NOS PAY SCALE AMOUNT MARKETING MANAGER 1 6000 6000 REGIONAL SALES MANAGER 2 4500 9000 AREA MANAGER 6 3000 18000 PROFESSIONAL SERVI CE REPRESENTATIVE 40 1000 40000 TOTAL 49 73000 YEARLY(Rs.73000x12) 8,76,000.00 Add: EARING BENEFIT 43,800.00 TOTAL 9,19,800.00 STATEMENT OF SALARY OF ADMINISTRATIVE STAFFS NOS PAY SCALE AMOUNT ADMINISTRATIVE OFFICE 1 6000 6000 SECRETARY 1 4000 4000 PURCHASE OFFICER 1 3000 3000 TOTAL……. 3 13000 YEARLY(Rs.13000x12) 1,56,000.00 Fringe Benefits-5% 7,800.00 TOTAL 1,63,800.00 STATEMENT OF SALARY OF DISTRIBUTION STAFFS 1) STORE IN CHARGE 1 2000 2000 2) DELIVERY VAN DRIVER 1 1500 1500 3) DELIVERY VAN HELPER 1 1000 1000 4) DELIVERY MAN 1 800 800 5) HELPER 2 700 1400 TOTAL 6 6700 YEARLY(RS.6700X12) 80,400.00 FRINGE BENEFIT-5% 4,020.00 TOTAL 84,420.00 STATEMENT OF WAGES OF FACTORY STAFF NOS PAY SCALE AMOUNT 1) MACHINE OPERATOR 6 2000.00 12000.00 2) SKILLED WORKMEN 8 1400.00 11200.00 3) SEMI SKILLED WORKMEN 8 1500.00 12000.00 4) UNSKILLED WORKMEN 10 900.00 9000.00 5) SWEEPER 2 800.00 1600.00 6) ELECTRICIAN 2 1200.00 2400.00 7) HELPER 2 800.00 1600.00 8) SECURITY 2 1500.00 3000.00 TOTAL 40 52800.00 YYEARLY(RS.52,800.00X12) 6,33,600.00 FRINGE BENEFIT-5% 31,680.00 TOTAL 6,665,280.00 STATEMENT OF SALARY OF LABORATORY(FACTORY) STAFFS NOS PAY SCALE AMOUNT 1) PRODUCTION MANAGER/CHIEF CHEMIST 1 6000.00 6000 2) QUALITY CONTROL CHEMIST 1 5000.00 5000 3)MANUFACUTURING CHEMIST 1 5000.00 5000 4) ASST. CHEMIST 2 3000.00 6000 5) LABORATORY ASST 4 1500.00 6000 TOTAL 9 28000 YEARLY(RS.28,000X12) 3,36,000.00 FRINGE BENEFIT-5% 16,800.00 TOTAL 3,52,800.00 IV) REQUIREMENT AND COST OF POWER (URL removed). NAME OF THE EQUIPMENT H.P. 1) AUTOMATIC ROTARY TABLETING MACHINE 3 2) COLLOID MILL 2 3) FILTRATION UNIT 0.5 4) TABLET COATING AND POLISHING PAN 1 5) TABLET DRYER 1 6) AUTOMATIC STRIPING MACHINE 1 7) VACUMETRIC BOTTLE FILLING 0.05 8) CAP SEALING MACHINE 0.5 9) AUTOMATIC LABEL CUMING AND PASTING MACHINE 0.05 10) (URL removed)T CHAIN CONVEYOR BELT 0.5 11) HORIZONTALTYPE MASS MIXTURE 5 12) STIRRER 2 13) CAVINET DYRE FOR BOTTLE DRYING 1 14) WATER PUMP, GENERATING AND LIGHTING ETC 5.5 15) SEMI AUTOMATIC BOTTLE WASHING AND BRUSHING MACHINE 0.5 16) OTHER MISC. MACHINERIES 1 25 HP APPROX 18 KW COST OF THE POWER 2.00(AT 100% capacity utilisatilon) 18.00x8x300x1.50 = Rs.86,400.00 Say Rs.0.86 lakhs (ANY EXCESS POWER REQUIRE FOR THE PROJECT WILL BE TAKEN CARE BY THE COMPANY AS THE NEED OF THE PROPOSED PROJECT) 1ST YEAR @ 40% Cap. Afilisation 0.35 lakhs 2nd Year @ 50% Cap. Afilisation 0.43 lakhs 3rd year @ 60% Cap. Afilisation 0.52 lakhs 4th and onwardes @ 70% Cap. Afilisation 0.60 lakhs V) ADMINISTRATIVE EXPENSES ITEMS (RS. IN LAKHS) 1) INSURANCE OF FIXED ASSETS 0.25 2) POSTAGES AND TELEPHONE 0.25 3) AUDIT FEES AND LEGAL EXPENSES 0.1 4) CONVEYANCE 0.25 5) STATIONERY 0.15 6) MISC, EXPENSES 0.12 TOTAL 1.12 Lakh(on 1st year) VI) SALES AND MARKETING EXPENSES 1) TRAVELLING EXPENSES FOR SALE PERSONNEL@ 3% ON SALES. 2) MARKETING AND SELLING EXPENSES @ 2% ON SALES 3) SALES PROMOTIONAL EXPENSES @ 5% ON SALES 4) DISTRIBUTION EXPENSES @ 3% ON SALES TOTAL 13% ON NET SALES VALUE PER YEAR TOTAL RECURRING EXPENSES(PER MONTH) (Rs. in lakhs) Particulars 1st year 2nd year 3rd year 4th year CAPACITY UTILISATION 40% 50% 60% 70% RAW MATERIALS 15.91 19.88 23.86 27.84 PACKING MATERIALS 9.44 11.80 14.15 16.51 SALARY AND WAGES 2.10 2.10 2.20 2.31 POWER 0.30 0.40 0.05 0.05 REPAIR AND MAINTENANCE 0.15 0.16 0.18 0.20 CONSUMABLES 0.15 0.16 0.18 0.20 TOTAL 27.78 34.14 40.62 47.11 CHAPTER-IV COST OF PROJECT AND MEANS OF FINANCE (RS. IN LAKHS) A) TOTAL CAPITAL OUTLAY 1) LAND AND BUILDING 52.52 2) PLANT AND MACHINERY 53.75 3) OTHER FIXED ASSETS 12.07 4) INSTALLATION AND ELECTRIFICATION 17.49 5) FURNITURE AND FIXTURES 3.29 6) PRELIMINARY AND PREOPERATIVES 12 7) CONTINGENCIES 3.79 8) MARGIN MONEY FOR WORKING CAPITAL 17.88 162.79 9) BANK BORROWING FOR WORKING CAPITAL 53.6 10) CAPITAL OUTLAY 216.39 B) MEANS OF FINANCE 1) SHARE CAPITAL 25 2) TERM LOAN (4.67% OF PROJECT COST) 1009 3) UNSECURED LOAN 28.79 4) BANK FINANCE @ 75% OF WORKING CAPITAL 53.6 TOTAL 216.39 CHAPTER-V FINANCIAL IMPLICATIONS: This capter gives the financial projection regarding sales realisation, profitability statement, computation of working capital and computation of interest, taxation, cash flow, statement, and balance sheet, nreak even point, debt service coverage ration and pay back period have also been worked out in details to show in the financial viability of the project. PROJECT COST AND MEANS OF FINANCE The project is estimated to cost Rs.1662.79 lakhs including margin money for working capital of Rs.17.88 lakhs. The amount is proposed to be financed as under: 1) SHARE CAPITAL 25.00 LAKHS 2) TERM LOAN 109.00 LAKHS 3) UNSECURED LOAN 28.79 LAKHS 162.79 LAKHS SHARE CAPITAL: The promoters capital of Rs.25.00 lakhs will be contributed by the entrepreneurs themselves by issuing shares. TERM LOAN The term loan of Rs.109.00 lakhs is proposed to be obtained from Industrial Development Bank of India. The loan is proposed to be repaid in 6 years by 11 half yearly instalment which will be commenced from the after 1 year Moratorium I.e. at the end of 1st operating year. The loan will bear an interest @ 17.5% annum. COMPUTATION OF WORKING CAPITAL: Details computation of working capital requirement made in appendix 5.1 bank finance has been considered to bew 75% of the total Investment towards working capital while considering the same Provision for one month stock of raw materials one week work-in-process, 3 weeks stock of finished goods and 30 days receivable(at cost) has been kept). BALANCE SHEET: Project Balance Sheet for 7 years has been computedn in appendix 5.8 BREAK-EVEN POINT: Break-even point calculation for 3 year at maximum capacity utilisation has been computed in Appendix 5.9 DEBT SERVICE COVER AGE RATIO: D.S.C.R. has been calculated in appendix 5.6 INTEREST: Interest on term loan working capital has been shown in Appendix 5.4 COMPUTATION OF WORKING CAPITAL Particulars Basis Bank Finance 1st year at 40% cap. Utilisation 2nd year at 50% cap. Utilisation 3rd year at 60% cap. Utilisation 4th year at 70% cap. Utilisation Total amount Bank finance Margin money Total amount Bank finance Margin money Total amount Bank finance Margin money Total amount Bank finance Margin money Raw and packing 1 month 75% 15.91 11.93 3.98 19.88 14.91 4.97 23.86 17.89 5.97 27.84 20.88 6.96 materials work-in-process 1 week 75% 6.95 5.21 1.74 8.54 6.4 2.14 10.16 7.62 2.54 11.78 8.83 2.95 finished goods 3 weeks 75% 20.84 15.63 5.21 25.61 19.21 6.4 30.47 22.85 7.62 35.33 26.5 8.83 Receivables(at cost) 1 month 75% 27.78 20.83 6.95 34.14 25.6 8.54 40.62 30.16 10.16 47.11 35.33 11.78 71.48 53.6 17.88 88.17 66.12 22.05 105.11 78.82 26.29 122.06 91.54 30.52 DEPRECIATION CALCULATION IN W.D.V. METHOD YEAR BUILD COST @ 5% p.a. Plant & M/C @ 10% p.a. Other Assets @ 15% p.a. Total FIRST YEAR Purchase during the year 51.31 45.06 33.84 130.21 Depreciation 2.57 4.51 5.08 12.16 Second Year: Opening Balance 48.74 40.55 38.76 128.05 Depreciation 2.44 4.06 4.31 10.81 THIRD YEAR Opening Balance 46.3 36.49 24.45 107.24 Depreciation 2.32 3.65 3.67 9.64 FOURTH YEAR Opening Balance 43.98 32.84 20.78 97.6 Depreciation 2.2 3.28 3.12 8.6 FIFTH YEAR: Opening Balance 41.48 29.56 17.66 88.7 Depreciation 2.09 2.96 2.65 7.7 SIXTH YEAR: Opening Balance 39.69 26.6 15.01 81.3 Depreciation 1.98 2.66 2.25 6.89 APPENDIX:5.3 ESTIMATED SALES: The sale figures of the proposed production at 100% capacity utilisation per annum has been calculated as follows:- BY SALE OF AMOUNTS(RS. IN LAKHS) LIQUIDS 734.04 TABLETS 290.28 CAPSULES 116.16 OINTMENTS 61.32 1201.8 ADD: EXCISE DUTY @ 15% 180.27 TOTAL 1382.07 Hence, the sale value of the finished products in different years as per capacity utilisation are as follows:- YEAR CAPACITY UTILISATION TOTAL AMOUNT P.A. 1ST YEAR 40% 552.83 2ND YEAR 50% 691.04 3RD YEAR 60% 829.24 4TH AND ONWARDS 70% 967.45 ESTIMATES OF PRODUCTION AND SALES (At 100% capacity utilisation) (URL removed). PRODUCT MONTHLY PRODUCTION UNIT SELLING RATE(TRADE PRICE) (RS) MONTHLY AMOUNT TOTAL ANNUAL AMOUNT A) ORAL LIQUIDS 1) Hilcher Suspension 52800 bottles 13.75 per bottle 7.26 2) Hilcer plus Suspension 26400 11 2.9 3) Andhya Suspension 22000 14.3 3.15 4) Neufen plus Suspension 22000 14.3 3.15 5) Naulk Syrup 22000 9 1.98 6) Carmolytie Syrup 44000 23.9 10.52 7) Pap plus syrup 88000 27.5 24.2 8) Pap plus drop 22000 12.9 2.84 9) Green liv syrup 88000 25.3 22.26 10) Green liv drops 22000 12 2.64 11) Protohem Syrup 44000 25.8 11.35 12) Live long syrup 22000 22.5 5.61 TOTAL 475200 Less: Physicians sample 9500 bottles 19.57 a) @ 20% b) Breakage wastage, leakage, expiry @ 5% 23760 4.89 356400 bottles 73.4 NET SALES REALISATION (AFTER 20% TRADE DISCOUNT) B) TABLETS 61.17 734.04 1) Neufen plus tablet 5 lacs nos. 105/100 tab 5.25 2) Metronidazole Tablets 2.5 lacs 80/500 tab 0.4 3) Diloxanide furo 2.5 lacs 50/100 tab 1.25 4) Almole tablets 2.5 lacs 95/500 tab 0.48 5) Ibuprofen 200mg tablets 2.5 lacs 80/500 tab 0.4 6) Papf. Plus tablet 2.5 lacs 5/30 tab 1.25 7) Green Liv tablet 2.5 lacs 30/30 tab 2.5 8) Bone cal tablet 2.5 lacs 32/30 tab 2.67 9) Timed tablet 5.0 lacs 305/100 tab 15.25 10) Timed IV 2.5 lacs 330/100 tab 8.25 TOTAL 30.0 LAKHS NOS. 37.7 452.4 LESS: Physicians sample a) @ 20% 6.00 lakhs nos. 7.54 b) Breakage, wastage, expiry etc.@ 3% 0.9 lakhs nos. 1.13 23.10- lakhs nos. 29.03 MONTHLY AMOUNT TOTAL ANNUAL AMOUNT NET SALES REALISATION (After 20% Trade Discount) 24.19 290.28 C) CAPSULES 1) Allendex 12000 unit(1 unit = 10 caps) 19.2 2.3 2) Almox 500 6000 units 39 2.34 3) Almox 250 12000 units 26 3.12 4) Lactotetra 12000 unit 21 2.52 5) Protohem 12000 unit 15 1.8 TOTAL: 54000 UNIT 12.08 Less: a) Physician sample @ 15% - 8100 unit 1.8 10.28 b) Breakage, wastage, leakage, expiry @ 5% =2700 0.6 9.68 LAKHS TOTAL So, yearly sale at 100% capacity = 116.166 lakhs D) OINTMENTS: 1) Brunax 12000 unit 18.00 2.16 2) Bactosprim 6000 units 14.00 0.84 3) Asebi 6000 units 22.50 1.35 4) Maelop(veginale) 6000 units 17.00 1.02 5) Stanan cream 6000 units 17.00 1.02 TOTAL 36000 UNITS 6.39 Less: a) Physican sample @ 15% = 5400 unit 0.96 5.43 b) Breakage, wastage, leakages expiry @ 5% = 18700 units 0.32 TOTAL 5.11 lakhs So, yearly sale at 100% capacity = 61.332 lakhs COMPUTATION OF INTEREST AND REPAYMENT SCHEDULE A)TERM LOAN YEAR HALF OPENING BALANCE REPAYMENT CLOSING BALANCE INTEREST @ 17.5% PER ANNUM 1st 1st 109 ….. 109 9.54 2nd 109 9 100 9.54 19.08 2nd 1st 100 10 90 8.75 2nd 90 10 80 7.88 16.63 3rd 1st 80 10 70 7 2nd 70 10 60 6.13 13.13 4th 1st 60 10 50 5.25 2nd 50 10 40 4.38 9.63 5th 1st 40 10 30 3.5 2nd 30 10 20 2.63 6.13 6th 1st 20 10 10 1.75 2nd 10 10 nil 0.88 2.63 B) WORKING CAPITAL LOAN: Rs.53.60 lakhs interest @ 18% p.a. = Rs.9.65 lakhs per year C) TOTAL INTEREST YEAR INTEREST ON TERM LAON INTEREST ON WORKING CAPITAL LAON TOTAL AMOUNT 1ST 19.08 9.65 28.73 2ND 16.63 9.65 26.28 3RD 13.13 9.65 22.78 4TH 9.63 9.65 19.28 5TH 6.13 9.65 15.78 6TH 2.63 9.65 12.28 PROJECTED PROFITABILITY STATEMENT PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Capacity utilisation 40% 50% 60% 70% 70% 70% A) Gross Sales 552.83 691.04 829.24 967.45 967.45 967.45 Less: Ex-duty 71.87 89.84 107.8 125.77 125.77 125.77 Net Sales 480.96 601.2 721.44 841.68 841.68 841.68 B) Cost of Sales I) Raw materials 190.88 238.6 286.32 334.04 334.04 334.04 ii) Packing materials 113.23 141.54 169.85 198.16 198.16 198.16 iii) Consumable stores 1.8 1.98 2.18 2.4 2.4 2.4 iv) Power and fuel 0.36 0.42 0.5 0.59 0.59 0.59 v) Repair and maintenance 1.8 1.98 2.18 2.4 2.4 2.4 vi) Salary and Wages 25.14 25.14 26.4 27.72 29.11 30.56 vii) Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 TOOTAL(B) 345.47 420.47 497.07 573.91 574.4 575.01 C) Gross Profit(A-B) 135.59 180.73 224.37 267.77 267.28 266.64 D) Sales & Marketing Exp 62.52 78.16 93.79 109.42 109.42 109.42 E) Administrative Exp. 1.12 1.23 1.35 1.49 1.49 1.49 F) Deferred exp written off 3 3 3 3 - - G) Profit before interest 68.95 98.34 126.23 153.86 156.37 155.73 H) Interest payable 28.73 26.28 22.78 19.28 15.78 12.28 PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Operating Profit 40.22 72.06 103.45 134.58 140.59 143.45 Tax provision 16.00 29.00 41.00 54.00 56 57 40% approx Director's Remuneration 0.96 0.96 1.2 1.44 1.8 2.4 Net Profit 23.26 42.1 61.25 79.14 82.79 84.05 Add: Back Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 Cash Accruals 35.42 52.91 70.89 87.74 90.49 90.94 Repayment 9.00 20.00 20.00 20.00 20.00 20.00 DEBT SERVICE COVERAGE RATIO(D.S.C.R.) PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR A) Debt Servicing fund Cash accruals 428.49 35.42 52.91 87.74 90.59 90.94 Interest on Term Loan 67.23 19.08 16.63 9.63 6.13 2.63 TOTAL 495.72 54.5 69.54 97.37 96.72 93.57 B) DEBTS Repayment on term loan 109 9 20 20 20 20 Payment of interest on 67.23 19.08 16.63 9.63 6.13 2.63 Term laon TOTAL 176.23 28.08 36.63 29.63 26.13 22.63 C) D.S.C.R.(A/B) 2.81:1 1.94:1 1.9:1 3.29:1 3.7:1 4.13:1 PROJECTED CASH FLOW STATEMENT: A) Inflow Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 1) Share Capital 25 - - - - - - 2) Unsecured loan 28.79 - - - - - - 3) Term laon 109 - - - - - - 4) Increase in Working 53.6 Capital Loan 5) Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 6) Deferred exp. 3.00 3.00 3.00 3.00 - - written off 7) Profit after depreciation 68.95 98.34 126.23 153.86 156.37 155.73 but before interest TOTAL 162.79 137.71 112.15 138.87 165.46 164.07 162.62 PROJECTED CASH FLOW STATEMENT B) OUTFLOW Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 1) Fixed assets including 132.91 contingencies 2) Deferred exp. 12 3) Increase in Current Assets 71.48 16.69 16.95 16.95 4) Repayment of Term Loan 9 20 20 20 20 20 5) Interest 28.73 26.28 22.78 19.28 15.78 12.28 6) Taxation 16 29 41 54 56 57 7) Directors remuneration 0.96 0.96 1.2 1.44 1.8 2.4 TOTAL(B) 144.91 126.17 92.93 101.92 111.67 93.58 91.68 Net surplus/ 17.88 11.54 19.22 36.95 53.79 70.49 70.94 Deficit Opening Balance 17.88 29.42 48.64 85.59 139.38 209.87 Closing Balance 17.88 29.42 48.64 85.69 139.38 209.87 280.81 PROJECTED BALANCE SHEET LIABILITIES Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Share Capital 25 25 28.79 28.79 28.79 28.79 28.79 Unsecured Loan 28.79 28.79 Term loan 109 100 80 60 40 20 - Bank borrowing - 53.6 53.6 53.6 53.6 53.6 53.6 Reserve and Surplus (net profit) - 23.26 65.36 126.61 205.75 288.54 372.59 TOTAL 162.79 230.65 252.75 294 353.14 415.93 479.98 ASSETS: 1) Fixed Assets(Net 132.91 120.75 109.94 100.3 91.7 84 77.11 depreciation 2) Deferred exp. 12 9 6 3 3) Cash/Bank Balance 17.88 29.42 48.64 85.59 139.38 209.38 280.81 4) Current Assets - 71.48 88.17 105.11 122.06 122.06 122.06 5) Other than cash Balance TOTAL 162.79 230.65 252.75 294 353.14 415.93 479.98 BREAK EVEN ANALYSIS (On 3rd year basis at 60% capacity utilisation) A) SALES 721.44 B) VARIABLE COST: 1) Raw and packing materials 456.17 2) Consumables 2.18 3) Power and Fuel 70% 0.35 4) Selling and distribution exp. 93.79 5) Admn. Exp 1.35 6) Interest on Working capital loan from bank 9.65 563.49 C) CONTRIBUTION(A-B) 157.95 D) FIXED COSTS: 1) Salary and Wages 26.4 2) Power and Fuel 30% 0.15 3) Depreciation 9.64 4) Interest on Term Loan 13.13 5) Repair and maintenance 2.18 51.5 E) B.E.P. FIXED COSTS X 100 51.50 X 100% 32.61 CONTRIBUTION 157.95 CHAPTER-1 M/S Apan Bio-Tech INTRODUCTION: The 21st. Century will be remembered for greater technology achievement, including greater understanding of the atoms structure, in formulation explosion that has resulted from advance in Computer Technology the information obtained from the space exploration. When measures in terms of its impact on the peoples lives though, 21st. Century, “ might as well be called a ‘Drug Age’. Although the Drugs alone cannot be considered to be sole reason for the progress in medicine achieved in the (URL removed)tury a glance back to its as 40 years ago indicated that “ at that time there were no antibiotics, no corticoids, sulpher drugs only few vitamins no tranquilizers, no antuhypettensives, no oral contraceptice drugs were available. “ Many great strides however, have been made in the last 40 years. So many disease have been controlled or irradicated and may experts agree that by the end of this century Pharmaceutical may be of greater importance in cure lives because of anticipated although break through in the field of neuro biology, celluler differentiation, genetics in wonder change. Nobel prize winning Bio-Chemist labeled drug as “ One of the greatest blessings by but perhaps the greatest blessings of our time”. Although every one whether friend or for of the Pharmaceutical Industry recognize the contribution of the industry to the health and welfare of the public availability of Pharmaceutical to the general public have merely occurred by chance. Pharmaceutical Industry concerned with Research and Development but it is almost important to keep in mine in the Pharmaceutial Marketing System(Working Procedure, Distribution, Re-Distribution, Correct Information). The Pharmaceutical marketing system is placing the drug available at the right time, at the right place at the right quantity, at a reasonable price. The Development of the industries post independence period in various fields of growth reflects advancement of Indian economy and Technology which have been acknowledged with surprise and appreciation by the other developing countries of the world. But spectural development of Pharmaceutical Industry has perhaps surprised all the development records in other spheres of activities. For example from Rs.10 crores investment during 1948 it has uptil 2004-2005 are going to be produced worth of Rs.4.112 crores ( i.e. completion of 9th plan) with a base capital of Rs.1000 crores . The profitability margin and further increase scope of its inherent expansion possibilities in the investment and product ratio at present with the technical expertise and other basic infrastructures facilities, involving availability of indegeneous raw materials, at cheaper rates in abundance, low cost of wages and vast and market in India and abroad. In fact, since pre-independence till 1972-73 these drug industries were completely under the fold of the big monopolist and multinational companies who have been exploiting the market and its profit charging the generic names and brand name of one decicines to other, neglecting the capacity and the purchasing limitations of the public in India just to make the utilization of their Technical capacities and market trend. The result is that against the genetic profit ratio, the coverage of population under medicinal treatment and modern drug therapy is only 30 to 35% approximately, the removing percentage being deprived of this live saving drugs out dire poverty. The survey of the population growth and the present trend business of these drug industries by these reveals two fundamentals steps to be taken which a bonovolent government cannot was to brook further delay in the interest of national economy as also of the interest of the common mass. The two positives thinking that were deemed to be adopted comprised of:- i) to extend facilities of medicinal treatment to the people and to bring more proper sections under this scheme by ensuring of medicine at cheaper rates and ii) To grave and combat the monopolistic endeavour of the big houses as far as practicable through prolonged process. The attempts, though not seen to be a gigantic success, undoubtedly appear to be fruitful and laudible steps to achieve the aim and the success of the implementation of the project. The Pharmaceutical industry plays an indispensable role in the health care of the entire population of the country whether rural or urban. The Pharmaceutical production commenced in India way back in 1901 when a unit to manufacture formulations out of important drugs was set up in West Bengal. The growth of this industry remained negligible upto 1947. During the last 25 years, the India Pharmaceutical Industry has been rapid strides in both formulations and bulk drugs. In fact the pharmaceuticals industry has made a worth while contributions to the national economy. The comparative performance of the Drug Industry is given in the following table:- (Rs. in crores) Year Production of bulk drugs Production of formulations Imports of Drugs and Pharmaceuticals Exports of drugs and pharmaceutical 2001-02 90.00 400.00 46.90 43.14 2002-03 226.00 1150.00 120.03 71.66 2003-04 377.00 1827.00 215.62 217.49 2004-05 640.00 3420.00 625.72 856.90 2005-06 880.00(Target) 4890.00(Target) 375.00(Target) 780.00(Target) Prime facie, the achievements of the drug industry in India seem satisfactory. However, in reality there has been considerable short fall in the production compared to the plan targets during the 7th and 8th plans. The shortfall in the production of bulk drugs is over 40 percent and in the case of formulations is about 35 per cent. According to the studies and projections made by National Council of Applied Economic Research (NCAER), the domestic demand for medicines by the year 2000AD, when the country is supposed to achieve the objective of “Health for All”, will be Rs.16,000 crores. This is more than four times the current production levels. In addition the country will have to produce sufficient surplus for exports. The value of the free world ethical pharmaceutical market in 1990 was around US 165,200 million. In 1980 the value of the total world market was US 62,315 millions, which has almost tripled during this decause. The U.S. Pharmaceutical market accounts for almost 30 per cent of the world market. In the table below the list of than largest Pharmaceutical market in the world has been given. The table shows that the perceptia expenditure of drug in India is very low compared to developed countries. (URL removed). Country Percentage of world market 1 U.S.A. 30 2 JAPAN 17.6 3 FRG 9 4 FRANCE 6 5 IALY 6 6 UK 3 7 CANADA 2 8 SPAIN 2 9 INDIA 1.5 10 BRAZIL 1.4 Today in India there are as many as 20,000 units, big and small, engaged in the manufacture of pharmaceuticals. Nearly 500 of these are in the orgganised sector and majority of balance units belong to the small scale sector. Collectively the industry generates employment for almost 10 lakhs people. On the national level, Gujrat accounts for 45 percent of the total pharmaceutical production in the country. From the above it can be seen that there exist vast opportunities in the field of pharmaceutical industry in India as the market for formulation is estimated to grow at an average rate of 11-12 per cent annually in coming years. As indicated earlier, the per capital consumption of drug formulation is very low compared to many developed countries based on the production value of formulation in India and its export in 1991, which are Rs.3560 crores and Rs.1230 crores respectively and with a nominal import, the per capita consumption of drug formulation in North- Eastern Region is again very low on the conservative basis if we consider per capital consumption of drug formulating in Eastern region at Rs.15/- the total current demand of drug formulations in the Eastern region can be estimated at approximately Rs.50 crores. Considering the increase in literacy, Govt. budget on health availability of medical professionals and population etc. in coming years, the demand of drug formulations in the Eastern region will have a considerable growth. Most of the requirements of drug formulation of this region is met by the supplies from outside the region. In view of the above, there appears to be bright prospect for this unit in marketing its products provided proper marketing strategy is adopted to achieve the desired market share required for its viability the product formulations have been identified keeping in view the requirements of such formulation in this region. MARKETING ARRANGEMENT: The promoter group is highly experienced in marketing of pharmaceutical products. So the company should not face any difficulty in formulation a suitable marketing arrangement. The products will be sold through distributors and as well as a unit for marketing department of the company will look after the marketing and distribution activities of the company. There will be an vast experienced Marketing Director who will lead the marketing department. The total market will be divided into two regions to be looked after by Regional Sales Manager. There will be Area Sales Managers and under them 40 numbers of Professional Service Representatives have been proposed to cover the whole market territory. Thus, with a professional approach in selling and back ground of promoters, the company should not face any problem in marketing its products. The pharmaceutical industry is a very important industry sector as the health care of millions of people of our country depends on it. At present India has top produce more than Rs.16,000 crore worth of drugs and pharmaceuticals to substantially fulfill its solemn commitment of Health for all by the year 2000. The industry has grown in a rapid pace and production value of formulations in 1990-1991 was Rs3560 crores and export from India also grew from 4 million in 1952-53 to Rs.12,500 crores in the year 1990-91. Accordingly various pharmaceutical industry have set up in different parts of the country to boost the production of drugs formulations needs for the “Health Care” of millions of the people of our country. In Eastern region, most of the requirements of drugs formulations are met from suppliers from outside of the region. There are not sufficient manufacture West Bengal and very in Assam producing formulations with low production capacity. In view of the above consideration the demand and marketing opportunities in drug formulations into the Eastern Region a group of entrepreneurs from Assam and West Bengal has incorporated “ ALMAS LABS PRIVATE LIMITED” – at Naihati, 24 Parganas to manufacture various drug formulations with the adequate modern equipment. The company Proposes to land for the factory of 50 kathas or less and civil works will start if funds are available . The promoter group is having long experience in pharmaceutical industry and is quite conversant with all aspects of the same industry. WORLD PRODUCTION OF DRUGS-1990 MILLION US Global 96,000 Indian Production as % of World Population 8.8% Indian Population as % of World production 251/2 PRICING: A new Drug Policy announced recently explains that in order to increase production which will lead to ultimate lowering of price drugs it is proposed to reduce the existing span of price control over drugs and pharmaceuticals. However, a very strong monitoring system will be evolved. As against the existing three categories of drugs and pharmaceuticals hereafter there will be two categories. The first category will consist of drugs necessary for National Health Programme and the second category that of essential drugs. Formulation, of the first category would have a MAPE (Maximum Allowable Post Manufacturing Expenses) of 75% and those of the second category of 100%. A high level expert committee has drawn up a list of drugs to be included in the second category. A new Drug price control order(DPCO) has been announced after the finalisation of drugs in two categories. The Government has retained the right to bright within ambit of control any drug in the recontrolled category whenever considered necessary. Prices of drugs in the controlled category would be constantly and closely monitored and an effective monitoring system developed for those. Government has the major role in fixing and controlling prices. It frames the policy, covers the process formula and monitors and approve prices. The main objective if the new drug policy and the new price control order into make avail as high quality. The new price norms recognize two fundamental economic principles First, the price of drugs like that of anything else is determined by cost of production. A corollary is that price reduction is possible only if the cost of production is brought down, second, unless a reasonable return is assured producers will not be encouraged to increase production of essential medicines. It is imperative to encourage cost, effective production through technological improvement, Productivity improvement and economic scale of manufacture need to be promoted by encouraging and rewarding efficiency and by removing obstacles to growth. The policy contains several measures and programmes designed to achieve this. Prices of medicines in India are not high, either in reaction to the cost of production of when compared to prices prevailing in other countries, developed and developing. This is a fact borne out experiences and confirmed by official studies and reports. Inspite of spiralling costs drug prices have not rised to the extend prices of other essential commodities and services have increased. The average annual increase in drug prices during the 15 year period 1990-2000 to 2005-2006 was 6% as against 17% in the case of all commodities. Drug prices compare very favourably with those of other essential commodities and services. Medicines today offer best value for money. HOW EXPENSIVE ARE MEDICINES ? Average cost of Average cost of common Medium per day goods of daily consumption Medicine ___________________________________________________________________________ Rs. Rs. Common headache 0.50 Cup of tea 1.00 Common allergy 0.30 Thali meal 8.00 Common cold 0.50 Milk(Half lit) 3.00 Gas trouble(Antacid) 0.50 Egg 0.90 Asthena 0.75 Banana 0.50 Diarrhoea 0.60 Soft drink 3.25 Fever(Antiobiotic) 2.00 Subarban Train 3.00 Ticket(Return) Amoebicides 1.50 Bus Fare 0.50 Tuberculosis(Multi drug 3.50 Inland letter 0.50 Treatment) Leprosy 0.30 News paper 1.80 Diabetees 0.20 Public Telephone calls 2.00 Blood Pressure 0.75 Packet of Cigarette(Ordinary) 4.00 Anging(Chest pain) 1.75 Artharities 1.75 PRODUCTS, ITS USES AND MARKET PROSPECT: The major products proposed in the unit are drugs formulations in the form of oral liquid and tablet and capsules and ointment in near future. The list of the products in their trade name proposed to be manufactured by the unit and the indications where they are used are given below:- NAME OF THE PRODUCT all proposed USERS ORAL PRODUCT A) Hilcer Suspension Antacid B) Hilcerplus suspension Antacid specific C) Andys Suspension Anti Diarrheal D) Neufen Plus Suspension Anti implemmatory Annalgesic Antipyretic E) Nulka Syrup Alkali Syrup F) Carmolytic syrup Carmolitic Anzym G) Pulp Plus Syrup Appetiser and Restorative Tonic H) Pulp plus drop Apetiser and Restorative Tonic I) Green Liv Syrup Liver Dysfunction J) Green Liv Drops Liver Dysfunction K) Protohem Syrup Iron Therapy L) Live long drops Multivitamin Restorative Tonic TABLETS: Neufen Plus Analgesic, anti-inflammatory Diloxanide Furoate Anti-glartdasis Metronidazole 200 mg Anti Amobic Almol Antipyretic Ibuprofen Analgesic Palp Plus Appetiner Green Liv Liver dysfunction Bone Cal Calcium therapy Timed Tablet Anti Amobio Timed IV tablet Anti Amoebic Some of the formulations are quite latest in the Indian Drug Industry. CAPSULES: A) Alnadex Caps : Vitamin and Minerals with Lactobacilus B) Almox Caps(500) : Broad Spectrum Antibiotic C) Almox 250 : - do – D) Lactotetra 500 : A dose convenient broad Spectrum Ahlibiotic with Lacto. E) Protohem Caps : Iron Therapy for specially During Pregnancy and Lactation. OINTMENT: A) Stanan Cream : Antifungal Cream B) Burnex Oint : Latest KTF Combination for Cuts and Burns. C) Bactorprim Oint : Antilacterial Oint D) Ascoi Oint : For Cuts, Wonds and for any Dressing in above respect. E) Meclop Vag. Oint : Most effective Vag. Oint uses For Trichmoniasis and Painful Mensturation. THE PROJECT: THE MANAGEMENT-FACILITIES TOBE PROVIDED FOR: THE PROJECT: The proposed project will be modern sophisticated medicine formulation unit at Naihati, 24, Parganas, West Bengal (Proposed). All latest State of the art machineries and equipment will be used for the formulations. THE MANAGEMENT: The project is proposed to be implemented by a Private Limited Company under the name and style of APAN BIO-TECH PRIVATE LIMITED with the registered office at P-69,E Unique Park ,Behala ,Kolkata 700 034 , West Bengal. The company has already been incorporated in the year of 2005 and started the marketing since last 1 years. The management consisting of Mr. Ajit Kumar Nath , Mr. Asish Basu , Mrs Nath and Mrs Basu . who are successful Industrial and is well experienced in pharmaceutical business financially sound and fully capable of managing the pharmaceutical unit successfully. Sri Ajit Kumar Nath is the Managing Director and Sri Asish Basu is the key-personnel as Manager Marketing. The bio-data of all the Directors are enclosed and the functional responsibilities of 4 Directors are envisaged as follows:- ( WILL BE GIVEN IN DUE COURSE) FACILITIES PROPOSED TO BE PROVIDED: Initial teething problem the company experienced difficulty in organizing the delivery of the goods as needs to the valued customer due to dependents with the co-manufacturers and non availability of fund. The factory will have the other facilities modern factory. PROJECT COST: The company proposes to approach the Financial Institutes for financial assistance for the purchase of machinery and equipments, building and civil works, misc, fixed assets, pre-operative expenses, margin money for working capital. The cost of plant and machinery and misc. fixed assets estimated at Rs.80.39 lakhs inclusive of taxes, carriage, transportation, packing, forwarding, insurance charges etc, All the equipments will be available indigeneously. The detail list of equipments is enclosed herewith. FACILITY PROPOSED IN THE PROJECT: The proposed Drug Formulation industry aims at providing medicine for various diseases as discussed. The various sophisticated equipments proposed in the project and their uses in the proposed center. The unit in a position to tackle the growing demand for proper supply. Due to constant marketing and market development and advancement of technology and where MARKET IS READY FOR SALE, the facility of the project is so essential for setting up formulation factory. COST, PROFITABILITY AND OTHER FINANCIAL ASPECTS OF THE PROJECT: The financial projections for a period of 6 years operation of the unit and various ingredients of the cost of operation and annexed to the report. The cost of such ingredient have been taken report on the basis of the present price structure. The profitability has been worked out on the basis of production programme indicated assuming the production at 40% of the installed capacity in the first year, 50% in the second year and 60% in the third year and 70% in 4th year and onwards. RAW MATERIALS: The total requirement of raw materials after considering process loss @ 5% has been worked out as shown. The total cost of raw materials has been estimated at Rs.477.20 lakhs at 100% capacity. Utilisation and will vary in the same proportion at other utilization levels. PACKING MATERIALS: In Pharmaceutical industry, the cost of packing materials is one of the major components in the cost of manufacture. The cost of packing materials(inclusive of bottles, caps, lebels, which are generally considered as a part of raw materials) at 100% capacity utilization has been estimated at Rs.283.08 lakhs and will very in the same proportion at other capacity utilization level. The details estimate of the packing materials are shown. POWER AND FUEL: The cost of power based on the total connected load of 18 KW has been estimated at Rs.0.86 lakhs per annum as shown. MANPOWER AND PLANNING: The total manpower in the project will be 123 Nos. of persons as shown below: 1) Sales and marketing staff 49 2) Office Staff 16 3) Factory Staff 9 4) Factory workers/staff 40 5) Administrative staff 3 6) Distribution staff 6 ____ 123 ____ All the required manpower including the executive will be available locally. WATER: The requirement of the water for the factory and for other purpose involved and hence no effluent treatment measures are necessary as no hazardous effluent are committed in the unit. SCHEDULE OF IMPLEMENTATION: The major activities and their implementation schedule is shown as under: (URL removed). Activity From To 1) Site Development 2) Civil works including factory godown. Boundary wall 3) PLANT AND MACHINERY: Placement of orders 4) Receipt of the plant and machineries & other equipment at site 5) Arrangement of raw materials 6) Arrangement of power 7) Installation of machinery 8) Manpower training 9) Trial Run 10) Commercial Production from the factory 11) Commercial production from Co-Manufacturers Already processing PROCESS OF MANUFACTURE: The basic process of manufacturing of Tablets and oral liquids are given below: 5.01 Tablets: Tablets can broadly divided into three classes i,e, compressed tablets, sugar coated tablets and entire coated tablets. In the present manufacturing project only two classes of tablet would be prepared. a) General Process: The general process of making compressed tablets are:- i) Direct compression ii) Slugging and iii) Wet Granulation The ingredients that goes into the preparation of a tablet are mixed with some adhesive substances which are called binders. To improve the flow properties of granules in the hopper of the tablet machine. Flow regulators or glidents are added. A lubricant sometimes become necessary to over, come the tendency of the tablet to stick to the punches and dies. For proper disintrigation of the tablet in the system a disintigrator is to be added. If the total quantity of the material become insufficient for proper size of tablets. b) PREPARATION OF SLUGGING: When tablet ingredients are sensitive to moisture or can not stand temperature drying digging and when the tablet ingredients are having binding and cohesive properties, slugging is used to form granulations. It consists of precompressing the dry mixed ingredients with lubricants into sludge which are subsequently connected to the correct size of the granule and recompressed. c) PREPARATION BY WET GRANULATION: In this process, the power ingredients are weighed and blended thoroughly. The powder blend is then shifted through a screen of suitable fineness to remove or break up the lumps. The powder blends are then shifted through an escidlating granulator which brusics the minerals through a screen. Moist materials from the granulater are sprayed in this layer on large sheets of craft paper on shallow wire rays. The dried granules are compressed in tablet punching machine and thus uncoated tablets are prepared some of the tablets are required to be coated to protect the ingredients against the atmospheric oxyten or carbondioxide, to mask uppleasent taste and odour, to improve the appearances of unlocated tablets and to control the site of action of the drug etc. The steps involved in sugar coating may be sub-divided into the following: 1) Wated profing and sealing 2) Sub-coating 3) Runding 4) Colouring and finishing and 5) Polishing Often, the water proofing and sealing step is omitted, but with sensitive substances such as vitamin mixtures it is included. The water proffing is usually made up with arsenic free sheelac. Sub-coating involves alternately wetting the tablets with sub-coating solution and when particularly dry, sprinkling with dusting powder. This cause the tablet to be rapidly filled out. Rounding or smoothing involves application of heavy syrup so that a hard smooth surface is produced, colouring and finishing involves application of thinner coloured syrup in order to build up the tablet further and obtain the desired share of colour. ANNEXURE-XIX PROCESS FLOW CHART Receipt of materials Materials stores Sampling of all materials Qualification of received Raw materials Finalisation of components For formulations Rejected components & Materials stores. Weights and measuring of Components Mixing Granulations Compounding and processing TABLETS LIQUID SUSPENSION a) Tabeling a) Mixing b) Compressing b) Stirring c) Coating c) Filteration d) Inspecting d) Components preparation e) Filling f) Sealing g) Visual Inspection STORAGE BEFORE QUALITY CONTROL STORAGE BEFORE PACKING FILLING, SEALING AND PACKING FINISHED GOODS QUALITY INSPECTION FINISHED GOODS QUALITY INSPECTION FINISHED PRODUCT STORAGE LIBORATORY CONTROL EQUIPMENT WASHING AND CLEANING PLANT CAPACITY: The company proposes to manufactures formulations such as (i) Tablet, and (ii) Oral Liquids. In tablet section, based on the capacity of the tablet making machine having a capacity of 250-400 tablets per minute. The unit will be able to manufacture 1.2 lakhs tablets per day on single shift working. The oral liquids section has a filling machine, the capacity of which is 40 bottles per minutes. Thus the capacity of the unit will be 19200 bottles per day on single shift working. Accordingly, the annual installed capacity of the unit based on 300. Working days in a year has been estimated as below:- INSTALLED CAPACITY: PRODUCT PER DAY PER ANNUM TABLET 1.2 LAKHS NOS. 360 LAKHS NOS ORAL LIQUID 19200 BOTTLE 57.00 LAKH BOTTLES CAPSULES NOS 05.40 LAKHS TUBES OINTMENT 1200 TUBES 3.60 LAKHS TUBES The capacity utilization of the unit in the 1st year, 2nd year, 3rd year and onwards has been estimated at 40%, 50% and 60% respectively and accordingly the annual production of the unit will be as below:- YEAR CAPACITY ANNUAL PRODUCTION UTILISATION TABLE ORAL LIQUID (LAKHS NOS) 1st 40% 180 28.50 2nd 50% 198 31.55 3rd 60% 216 34.20 4th and onwards 70% 252 39.90 Although the unit will be capable of producing at much higher capacity, for the purpose of economic viability projections the above capacity utilization has been considered. TECHNICAL FEASIBILITY: 1) AVAILABILITY OF TECHNICAL : The technical know how of this project is available with the entrepreneur. 2) COLLABORATION IF ANY : NIL 3) TECHNICAL QUALIFICATION : As stated in the Bio-Data the entrepreneurs AND EXPERRIENCE OF THE are technically qualified and marketing ENTERPRENEUR as well as distribution net work of Pharmaceutial sales. 4) AVAILABILITY OF PLANT & MACHINERY : The plant and machinery are indigeneously available. The main manufacturer and suppliers are as follows:- 1. M/s United Engineering(Calcutta) 2. M/s Clit India(Bombay) 3. M/s Asoka Enterprise(Calcutta 4. M/s New Salcon Scientific Concern(Calcutta) 5. M/s Pharma Pack(Bombay) 6. M/s Pam Machinery Company(Bombay) 7. M/s Adair Dutta & Sons (Calcutta) 8. M/s Geolite India Ltd(Calcutta) 9. M/s Gansons Engineers Pvt. Ltd.(Madras) 10. M/s The Scientific Apparatus Company (Calcutta) 5) EXPECTED LIFE OF MACHINERIES : 15 years and above 6) AVAILABILITY OF RAW MATERIALS :Indigeneous(all are available in the . . local market of Calcutta, Bombay, . Hyderabad and Damau Free Port. 7) STANDARDISATION OF QUALITY :Quality Control arrangement both for CONTROl raw materials and Finished product have been provided in the project. ORGANISATION CHART BOARD OF DIRECTORS MANAGING DIRECTOR DIRECTOR FINANANCE DIRECTOR MARKETING DIRECTOR PRODUCTION MANAGER MARKETING MANAGER PRODUCTION MANAGER CHIEF CHEMIST ACCOUNTS OFFICER REGIONAL REGIONAL QUUALITY MANUFACTURING ACCOUNTS RECEPTIONIST SALES SALES CONTROL CHEMIST ACCOUNTANTS OFFICE MANAGER MANAGER CHEMIST CLERK ASSTT. STENO ETC. AREA AREA MANAGER MANAGER SALES SALES PROFESSIONAL PROFESSIONAL ASSTT. (URL removed)MIST SERVICE SERVICE REPRESENTATTIVE REPRESENTATIVE SKILLED LABOUR WORKERS STORES INCHARGE WORKERS AMOUNT Rs. in lakhs CHAPTER-II NON-RECURRING EXPENSES A) LAND Cost 2.50 registration fees -0.20 2.70 B) CIVIL CONSTRUCTION I) Main factory shed ground floor (URL removed). @ Rs.400.00 per (URL removed). 26.00 1st Floor 2724 (URL removed). 350.00 9.53 35.53 ii) Godown 595 (URL removed). @ Rs.300.00 per (URL removed). 1.79 iii) Boundary wall 750 (URL removed). @ Rs.200.00 per (URL removed). 1.50 iv) Culvert , Main gate and security room 1.50 v) Overhead R.C.C. water reservoirs including deep tube wells pumps 6.00 vi) Internal road, development work etc. 3.50 49.82 C) PLANT AND MACHINERY I) Tablet section 23.12 ii) Liquid and oral section 12.02 iii) Ointment section 2.22 iv) Capsules section 1.70 Total 39.06 Add: S.T. Insurance, Freight Charges, packigng and (URL removed)y @ 12% 4.69 43.75 D) OTHER FIXEED ASSETS I)Scientific Instruments 6.15 ii) Books and Peeriodicals 0.65 iii) Other accessories 0.97 iv) Quality Control Equipments 2.02 v) Blocks, Dies and Cylinder 2.28 12.07 E) INSTALLATION AND ELECTRICALS I) Electrical Equipments 2.34 ii) Generator(50 KVA) 7.15 A.C. & other utilities iii) Security deposit to SEB 5.00 iv) Cost of installation 3.00 17.49 F) FURNITURE & FIXTURES 3.29 G) PRELIMINARY AND PREOPERATIVES 12 H) CONTINGENCIES @ 3% ON NON-FIRM COST 3.79 Total 144.91 ALLOCATION OF CONTINGENCIES UNDER DIFFERENT FIXED ASSETS (URL removed)., Particulars Cost Contingencies @ 3% Total Cost 1) Factory and other construction 49.82 1.49 51.31 2) Platnt and machineries 43.75 1.31 45.06 3) Other fixed assets including Electrification 32.85 0.99 33.84 and installation & Fuurniture and fixture Total 126.42 3.79 130.21 DETAILS OF PRE & PREOPERATIVE EXPENSES 1) Papers, documentation, legal fees and contingency fees 3.00 lakhs 2) Initial expenses 0.60 lakhs 3) Interest on loan @ 17.5% 8.00 lakhs for the construction period 4) Other Misc. expenses like travelling, 0.40 lakhs printing, stationery, postage etc. 12.00 lakhs ALLOCATION OF CONTINGENCIES UNDER DIFFERENT FIXED ASSETS (URL removed). Particulars Cost Contingencies @ 3% Total Cost 1) Factory and other construction 49.82 1.49 51.31 2) Platnt and machineries 43.75 1.31 45.06 3) Other fixed assets including Electrification and 32.85 0.99 33.84 installation and furniture and fixture TOTAL…………… 126.42 3.79 130.21 DETAILS OF PRE & PREOPERATIVE EXPENSES: 1) Papers, documentation, legal fees and 3.00 lakhs contingency fees 2) Initial expenses 0.60 lakhs 3) Interest on laon @ 17.5% for the 8.00 lakhs constuction period 4) Other Misc. expenses like travelling, printing, 0.40 lakhs stationery, postage etc. 12.00 lakhs ANNEXURE-I LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification Power Unit Unit Price Amount Manufacturer/ Suppliers Mas Mixter Capacity-50kg 5HP 1 99000.00 99000.00 Cadmach Machinery Co. Drying oven Capacity-24 trays with MS. Trays 24 extra 1HP One & half 58500.00 58500.00 Asoka Enterprise Fluid Bed Dryer 1 158700.00 158700.00 do Multi Mill 3HP 1 85000.00 85000.00 Cadmach Machinery Co. Granulator/Oscillating GNP Model 2HP 1 49500.00 49500.00 do 2G, 16 (URL removed)ary Tablet pubching m/c. Out put 260 to 450/Min 2HP 1 92500.00 92500.00 do Die-punch sets(3 sets) D.S.1/2" Concave 3 sets 60000.00 60000.00 do Tablets coating machine 36" dia 1 83125.00 83215.00 Gansons Ltd Tablets polishing pen 1 11875.00 11875.00 do a) Blister packing machine with one set of change parts PHARMAPACK 150 ch 2 432400.00 Pharmapack/Ashoka Ent. 8 71600.00 572800.00 do b) Right complete set of change parts(additional) ( The above blister pack machine will be used in tablet and capsule products of all range) c) Water cooler-120 litrs/(URL removed) 18 degree C-20 degree C-3 Bar clit deduster Clit deduster 1 44000.00 44000.00 do 1 31000.00 31000.00 do 1 31000.00 31000.00 do Dust extractor unit-150 degree C with nozzle 1 19000.00 19000.00 Cadmach Machinery Co. Dist for tablets and capsule 1 48400.00 48000.00 do Tablet disintrigation measurement apparatus 1 17250.00 17250.00 Addair Dutta & Sons Pireability Test apparatus 1 17250.00 17250.00 do 2312300 Rs.23.12 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Bottle washing machine 4 heads with 24 rinser 1/2 HP, 1 Unit 22,050.00 22,050.00 Ashoka Enterprise Stirrer(Industrial) Drying Oven 3 HP 2 Unit 23085.00 1/2 HP 15870.00 39675.00 do Capacity 24 rays 1 HP, 1 Unit with 24 extra. Trays 58500.00 59500.00 do Snerkler filter 12 bed(Horizontal) 1 H.P. Unit 1 59500.00 59500.00 do Storage Tank ( SS Vat) Capacity 2000 Lts(1 unit) 75900.00 75900.00 do do 1000 lts(2 units) 43000.00 86000.00 do 500 lts( 2 units) 30350.00 60700.00 do 300 lts(2 units) 22750.00 45500.00 do 200 lts(2 units) 17700.00 35400.00 do 100 Lts(2 units) 10750.00 21500.00 do Collied Mill 12" dia water Jacketted 3 HP(1 Unit) 62700.00 62700.00 Cadmach M/c. Co. Inline Liquid ROPP Cap sealing checking gumming machine fully automatic with conveyer Belt(complete set) United Engineering Works a) Semi automatic 2 head vacuum typeModel (V.L.F.4)1/2 HP/3 Phase/AC/440 bottle filling machine % HP(2 Unit) 33050.00 66100.00 do b) Two head volumetric bottle filing M/C.0.7 KW / Phase/440V/AC(2 Unit) 30400.00 60800.00 do c) Two SS. Cyringe for two head volumetric bottle filling machine 0.7 KW/3 phase/440 V/AC(1 unit) 46250.00 46250.00 do Total …………. 740575.00 ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers e) Hand operated Caping m/c 1 unit 16500.00 16500.00 United Engineering Works f) 28" Conveyor with motor reduction gear box and starter 1 unit 92575.00 92575.00 do g) Semi automatic HOPP caping machine with 0.5 HP motor and reduction gear box sturter(Model CM.I) 1 unit 47000.00 47000.00 do h) Semi Automatic inspection table 1 unit 37000.00 37000.00 do I) Semi automatic label gumming and pasting machine and motor 0.5 HP/AC 3 Phase/440V(Model L.C.P.1) 1 49600.00 49600.00 do j) Changeable parts for above machine 1 31050.00 31050.00 do k) Turn Table(unscramble) Model TT-30 1 35700.00 35700.00 do l) Deminerised water treatment plant (I) Capacity-1000 1 tr. Per hour 1 72450.00 72450.00 do 47600.00 47600.00 do ii) Capacity-500 ltr. Per hour 1 31750.00 31750.00 do Total 461225.00 B/f 740575.00 Total …………. 1201800.00 Rs.12.02 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Steam jacketed vat. Capacity-1000 lts 1 unit 45450.00 45450.00 United Engineering Works Autoclave 22" dia x 30" deep power 6 KW 1 unit 30800.00 30800.00 Addiar Dutta & Sons Triple Hollar Mill Size: 100x300 MW with motor 1 HP 440/Volt/3 Phase, 20 KW per hour 1 Unit 59500.00 59500.00 Asoka Enterprise Tube Filling, Sealing and batch printing machine Semi automatic 1 unit 60850.00 60850.00 United Engineering Works Extra for crimping and eoding device 2 Unit 12650.00 25300.00 do Total ……….. 221900.00 Say Rs.2.22 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Cone mixer Capacity 25 kg., 1 HP 2 Unit 42320 84640 Asoka Enterprise Vacuum pump for capsule leak echecking 1/2 HP, 1 Unit 9200 9200 do Capsule fillint machine Capacity-300 holes(Manusal operated) M.F. 30.2 Unit 33195 66390 Pam Machinery Co. Physical Balance 1 Unit 10120 10120 Addair dutta and sons Total 170350 Say Rs.1.70 lakhs STATEMENT OF SCIENTIFIC INSTRUMENT WITH MICROBIOLOGICAL SET UP (URL removed). Name of instrument Specification Unit 1) U.V. Spectro Photometer PC based stable beam UV-VIS spectro photomotor model GS 5702 1 2) Digital PG Meter 1 3) Melting Point apparatus 1500 1 4) Drying Oven(15"x15"x18") 5) Heating mantle-2 litres 550 watts 6) Double cell eletric colourimeter 1 7) Incubator(24"x24"x30") S.S. 1 8) Digital balance(Electronic) 1 9) Table top centrifuge(Electrical) 8x15ml tubes 1 10) Magnetic Stirrer 1 11) Hot air blower 1 12) Ultra violet ceracidal lamp 1 13) Polarimeter for 200mm tubes 1 14) Infrareo moisture balance 1 15) Refrawmeter 1300 to 1700 range 16) Chemical balance 1 17) Vaccum pup-capacity 30 litres/min 1 18) Constant temperature water bath 18"x12"x10" 1 19) Thermostatic water bath 16"x12"x7" 1 20) Simple retary stirrer Speed 4000 R.P.M. 1 21) Hot Plate 18"x12" 1 22) Tulu pump 1 23) 1 KVS Serve voltape stabilizer 1 24) Tect dry 7 sterilising over 12"x12"x14" 25) Auto distillation applicances 8 lit/hour-8 KW ANNEXURE:2(CONTD….) (URL removed). Name of instrument Specification Unit 26) T.L.C. Hit with (URL removed)p 1 27) Flourimeter 1 28) Laminer flow 1 29) Kearl Fisher Titrator 1 30) Deeps apparatus 1 31) Travelling microscope 1 32) Naphellometry 1 33) Vaccum drier 1 34) Vaccum Desicator 1 35) Auto clave 1 36) Muffle farness 1 37) D.T. Measurement apparatus 1 38) (URL removed)surement apparatus 1 Total Cost 6.15 lakhs ANNEXURE:3 STATEMENT OF BOOKS AND PERIODICALS (URL removed). Name Unit 1)` Indian Pharmacopoea(Volume 2) 2 2) British Pharmacopooea(Volume 2) 2 3) US & NF Pharmacopoea 1 4) The Extra Pharmacopoea(Martindale) 2 5) Remington Pharmaceuticals 1 6) Goodman and Gilman(the Pharmaceutical basis of Therapeutics) 1 7) Marckined 1 8) Good Manufacturing practice 1 9) Others Government acts and rules 2 Total 0.65 lakhs ANNEXURE-4: Statement of Other Accessories (URL removed). Specification Qty Rate Amount 1) S.S. Pipe lining for supply of (URL removed)er to different section …. ….. 20,000 2) Wooden platform for raw materials and packing materials stores 2 nos 1000 2000 3) Wooden tabe for quality control department and manufactturing unit For analysis 2 nos 6000 12000 For Instruments 4 nos. 2000 8000 Packaging table 6 nos. 4000 24000 4) Wooden pack for raw materials stores and packing materials stores 8 nos. 2000 16000 5) Pollythene Vat. Capacity-100 litres 20 nos. 250 5000 6) Pollythene bucker, capacity 25 litres 10 nos. 215 2150 7) Pollytthene tray(for bottle) 50 nos. 150 7500 8) Pollythene Balti 10 nos. 30 300 9) Pollythene Mug-Capacity 1 litre 20 nos. 10 200 Total …….. 97150 Say Rs.0.97 lakhs ANNEXURE: 5 STATEMENT OF QUALITY CONTROL ARRANGEMENT:: ANALYTICAL SECTION AMOUNT A) Wooden furniture 30,400 B) Electrical equipments 14,500 C) Other than eloetrical equipments 21000 D) Other common laboratory 17730 E) Glass apparatus 59940 F) Analytical reagents 58000 Total 201570 Say Rs.2.02 lakhs ANNEXURE: 6 STATEMENT OF BLOCKS, DIES AND CYLINDER Sl. No. Description Qty Rate Amount 1) Zinc blocks for samples catch cover 14 1500 21000 2) Zinc blocks for samples catch cover 11 2000 22000 3) Zinc blocks for labels 11 800 8800 4) Zinc blocks for labels 14 1200 16800 5) Metal cylinder for stripping materials/poly paper or Aluminium foils 14 8000 1,12,000 6) Blocks for tubes of ointment in different sizes 5 2500 12500 7) Die-punch storage trays(18 gauge) 10 2500 25000 8) Bottle mould 2 sets 5000 10000 228100 Say Rs.2.28 lakhs ANNEXURE: 7 STATEMENT OF ELECTRICAL EQUIPMENTS: Description Specification Rate Quantity Amount Exhaust fan 16" dia, 20 nos. 1500 30,000.00 Fan/Ceiling 48" length 40 nos. 800 32000 Wall/Bracket fan 16" dia, 10 nos. 800 8000 Padestal fan Big size 4 nos. 4100 16400 Industrial tube sittings 1 set 50 nos. 550 27500 Capacitor 1 no. 20000 20000 Other electrical equipments with complete wiring) factory, office, godown etc. L.S. 100000 Total ……….. 233900 Say Rs.2.34 lakhs ANNEXURE:8 STATEMENT OF UTILITIES: Name of utilities Specification, Quantiy Unit Price Amount Airconditioner Capacity 1 ton 10 nos 25000 250000 Debmudifer 2 nos. 46000 92000 Refrigerator Capacity 165 ltr. 2nos. 9000 18000 Generator set Capacity 50 KVA 1 no. (Phone # removed)00 FIRE FIGHTING ARRANGEMENTS: FIRE EXTINGUISHER Chemical vapour type 10 nos. 800 8000 Fire fighting bucker 10 nos. 200 2000 Washing Balance(Avery) Capacity 50 kgs 1 no. 48000 48000 Washing Balance(Avery) Capacity-10 KG 1 no. 22000 22000 Troller((URL removed)ting) 2 nos. 6000 12000 Gear pump Capacity 1 no. 1/2 HP 5100 5100 Total 715100 Say: Rs.7.15 lakhs ANNEXURE-9: STATEMENT OF FURNITURE AND FIXTURE Name of articles and specification Quantity reqd. Rate/Unit Amount Table-Secretariate type(full) 20 3000 60000 Table-Secretariate type(Half) 40 2000 80000 Chair-Special type 20 nos. 800 16000 Chair-Special type 40 nos. 600 24000 Chair-Special steel(with arms) 150 nos. 300 45000 Chair-Steel Chair(without arms) 50 nos. 220 11000 Almirah-Steel Office type 20 nos. 2000 40000 File cabinet-Steel(Office use) 4 nos. 4000 16000 Wooden tools 10 nos. 200 2000 Type writer 4 nos. 8000 32000 Calculator 10 nos. 300 3000 Total………. 329000 Say: Rs. 3.29 lakhs CHAPTER-III RECURRING EXPENSES: I) COST OF RAW MATERIALS: Products name` Name of raw materials Unit rate Monthly requirements Cost Hilcer suspension in 170 ML bottle D.G.L.I.P. 400X523 kg 2.09 Dimethyle polysiloxane 400x27kg 0.11 I.P. dried aluminium hydroxide 50x880kg 0.44 Gel I.P Magnesium Hydrooxide B.P. 45x880kg 0.4 Hilcer plus susp. 120 ML bottle G.G.L>I % P 400x175kg 0.7 Andys suspension 50 ML bottle Metronidazole benzeati P 77x110kg 0.77 Furazolidone IP 750x44 kg 0.33 Diloxanide Furoate IP 650x110kg 0.72 Neufen plus suspension 50ml bottle Paracetamol IP 189x18kg 0.03 Nualka syrup 100ml bottle Disodium hydrogen citrate IP 100x440kg 0.44 Cramolytic syrup 200 bottle Rungal diastase(1:1200) 1000x44 kg 0.44 Pepsin(1:13000) 1080x44kg 0.48 Weak ginger BP 1000x4.5kg 0.05 Conc. Cinnamol water DP 1200x4.5kg 0.05 Ajowan Oil IP 2500x4.5kg 0.11 Comp. Cardamon 800x4.5kg 0.04 Papf plus syrup 180 ML Bottle Cyproheptadine hydrochloride U.S.P. 26000x9 kg 2.34 Tricholine citrate 100 x17.76 kg 1.78 Llysin monohydrocloride IP 265x440kg 1.17 Thaimine hydrocloride IP 3000x6.5kg 0.2 Riboflavine IP 4500x6.5kg 0.29 Pyridoxine Hydrocloride 4000x4.5kg 0.18 13.16 Products name Name of raw materials Unit rate Monthly reqd. Cost Papf plus drop Cyprophepatadine Hydro Chloride IP 26600x2.2kg 0.59 Llysis Monohydrochloride USP 265x44 kg 0.12 Tricholine citrate 100x176kg 0.18 Thiamine Hydrochloride I.P. 3000x4.5kg Ribiflavine IP 4500x4.5kg 0.01 Pyrodoxine Hydrochloride IP 4000x4.5kg Green lit syrup Tricholine cittrate 100x1760kg 1.76 Kalamegh liquid extract B.P.C.886 600x22kg 0.13 Thiamine Hydrochloride IP 3000x6.5kg 0.2 Riboflavine IP 4500x6.5kg 0.29 Pyrodoxine Hydrochloride IP 4500x4.5kg 0.2 Green Liv drops Kalamegh liquid extract IP 66 6600x4.5kg 0.3 Tricholine citrate 100x176kg 0.18 Thaimine Hydrochloride IP 3300x440gm Riboflavine IP 4500x440 gm Pyridoxine HCL IP 4000x440gm 0.05 4.01 B/f 13.16 17.17 c/o Product name Name of raw materials Unit rate Month reqd. Cost Protchem syrup None tronic feric ammonium citrate 200x88kg 0.18 Casein Hydrolsate 20% 210x440kg 0.92 L-Lysis monohydrochloride USP 265x35 kg 0.09 Pyridoxine Hydrochloride IP 4000x1.1kg 0.04 Folic Acid 5000x450kg 0.02 Zinc sulphate 100x9kg 0.02 Calcium Gluconate 200x9kg 0.02 Vitamin D3 2000x220 IU 0.01 Vitamin B12 3000x220gm 0.01 Liv Long syrup 200 ML bottle Trichline citrate 100x308kg 0.31 Sodium Taurodycocholate BPC 300x200kg 0.07 (URL removed)hionine 300x5 kg 0.02 Vitamin BI IP 3000x1.1kg 0.03 Vitamin B2 IP 4500x1.1kg 0.05 Vitamin B12 IP 3000x50kg Kalamegh IP '66 600x4.5kg 0.03 93883535 kgs 19.02 MONTHLY REQUIREMENT ANNUAL REQUIREMENT 112.66 MT 228.24 ADD: PROCESS LOSS @ 5% 5.63 mt 11.41 118.29 MT 239.65 Add: Packing, forwarding and transportation charges etc. @ 3% 7.19 TOTAL ANNUAL COST 246.84 B) FOR TABLETS Products name Name of the raw materials Unit rate Monthly reqd. Cost Neufen plus tablet Ibuprofen IP 600x225 kg 1.35 Paracetamol IP 180x225 kg 0.41 Ceffein Aunydrops IP 600x15kg 0.09 Diloxanide Furate tablet Diloxanide Furoate 650x150kg 0.98 Metronidazole 200 MG TABS Metronidazole IP 680x125kg 0.85 Almole tablet Paracetamol IP 180x250kg 0.45 Ibuprofen 200mg tablet Ibuprofen IP 600x100mg 0.6 Papf plus tablet Cyprohepadins FCL USP 2600x25kg 0.65 Chloline bitrate 600x5kg 0.03 L-Lysine monohydrochloride 265x62.5kg 0.17 Vitamine bl IP 3000x500gm 0.02 Vitamine B/6 IP 4000x500gm 0.02 Vitamine B/2 IP 4000x500gm 0.02 Bone Cal Tablet Calcium Carbonate IP 95x500gm 0.48 Vitamine D/3 3000x25gm Timed Tablet Tetracycline HCL IP 1600X175KG 2.8 Metronidazole IP 689x225kg 1.55 Green Liv tablet Cholin bittrate 600x25kg 0.15 Bile Salt BPC '54 200x25kg 0.05 D-L-Methiopnine 300x1.25kg Vitamin B/12 IP 3000x25kg Vitamin B/1 3000x500kg 0.02 Vitamine B/6 IP 4000x500kg 0.02 Vitamine B/2 IP 4000x500kg 0.02 Timed IV Tablet Metronidazole IP 68x125kg 0.09 Tetracycline HCL IP 1600x75kg 1.2 Dilomanide Furoate IP 600x125kg 0.75 MONTHLY REQUIREMENT 24370250KG 12.77 ANNUAL REQUIREMENT 29.24 mt 153.24 Add: Process Loss @ 5% 1.46 MT 7.66 TOTAL 30.7 160.9 Add: Packing, forwarding and transportation etc. @ 3% 4.83 TOTAL ANNUAL COST 165.73 C) FOR CAPSULES Products name Name of raw materials Unit rate Monthly reqd Cost Alnadex capsules 0 3500 1.2kg 0.04 Vitamin B/2 3000 1.2kg 0.04 Nicotinamide 400 12kg 0.05 Cal-Panthonat 400 6kg 0.02 Vitamin B/6 2500 0.36kg 0.01 Vitamin B/12 300 0.18gm Folic Acid 300 1.8kg 0.01 Vitamin C 800 18kg 0.14 Lactobacilins 460 48kg 0.22 Zince Sulphate 115 6kg 0.01 Starch 10% 10 4.8kg Tale 1% 30 4.8kg 0.01 Magnesium Stcarate 30 0.48kg 50 0.48kg Almox capsules(500) Amoxicillin 3500 30kg 1.05 Lactose 10% 30 3kg Starih 10% 10 3kg Magnesium Stcarate 1% 50 0.3 0.01 Tale 1% 30 0.3 Almox 250 Amoxicillin 3500 30kg 1.05 Lactose 10% 30 3kg Starih 10% 10 3kg 0.01 Magnesium Stcarate 1% 50 0.30kg Tale 1% 30 0.3 Lactotetra 500 Tefracy Cline hcl 1625 60kg 0.98 Lactobacilli 460 4.8kg 0.02 Lactose 10% 30 6kg Starch 10% 10 6kg Talc 1% 30 0.60kg Magnasium Stearate 50 0.60kg 0.01 3.68 Products name Name of raw materials Unit rate Monthly reqd. Cost Prutohen cap Ferrous Finatate 250 2.4kg 0.07 Vitamin B/2 3000 0.30kg 0.01 Vitamin B/12 300 0.90kg Vitamin B/6 3000 0.18kg 0.08 Vitamin C 800 9kg Folic acid 300 9kg 0.03 Lilysim mono HCL 525 6kg 0.03 Dioclyi Sodium sulpho Snceinate 260 3kg Starch 10% 10 5.2kg 0.01 Lactose 10% 30 5.2 Magnesium Sterate 1% 50 0.52 Tale 1% 30 0.52 0.23 B/f 3.68 MONTHLY REQUIREMENT 2934630kg 3.61 ANNUAL REQUIREMENT 35.22 MT 45.72 ADD: PROCESS LOSS @ 5% 1.76 2.29 TOTAL 36.98MT 48.01 Add: PACKING, FORWARDING, TRANSPORT ETC .@ 3% 1.44 TOTAL ANNUAL COST 49.45 D) FOR OINTMENT Product name Name of the raw materials Unit rate Monthly reqd. Cost Stanan Cream Cotrimazole 2600 0.30kg 0.01 Betname Thatone 4500 15kg 0.07 Genetamycin 4500 30kg 0.14 Propyline Glycol 450 10 0.04 Cream 400 10 0.04 Other inactive ingredient xx XX 0.01 Burnex Ointment Kitrofurazone 750 240GM 0.18 Silver Sulphadine Giluconate 10 240gm 0.02 Propyline Gllyeol 400 20kg 0.08 Cream Lanocim 200 20kg 0.04 Bactosprim Ointment Polymixine B Sulphate 450 15kg 0.07 Zine baeitracin 200 0.12kg 0.05 Prophline Glycol 450 10kg Newmycin Sulphate 300 10.2kg 0.03 Cream base 200 10kg 0.02 Ascoi Ointment Gama benzine mexachiorid 800 3kg 0.02 Cetrimide 600 7.5kg 0.02 Providine Iodine 200 7.5kg 0.02 Meclop Veginale Ointment Matronidavole 660 0.12kg 0.02 Clotrimazole 2600 0.6kg Povidine Iodine 200 15kg 0.03 Propyline Glycol 450 10kg 0.05 Cream base and other inactive ingredient 200 10kg 0.02 Monthly requirements 75.934kg 1.17 ANNAUL REQUIREMENT 9.11KG 14.04 ADD: PROCESS LOSS @5% 0.46KG 0.7 TOTAL 9.57KG 14.74 ADD: PARKING, FORWARDING TRANSPORT @ 3% 0.44 TOTAL ANNUAL COST 15.18 TOTAL COST OF THE RAW MATERIALS (P.A.) (AT 100% CAPACITY UTILISATION) (Rs. in lakhs) TOTAL OF GROUP A 246.84 TOTAL OF GROUP B 165.73 TOTAL OF GROUP C 49.45 TOTAL OF GROUP D 15.18 TOTAL 477.2 1ST YEAR @ 40% CAP 190.88 2ND YEAR @ 50% CAP 238.6 3RD YEAR @ 60% CAP 286.32 4TH YEAR @ 70% CAP 334.04 ii) ANNAUL REQUIREMENT AND COST OF PACKING MATERIALS (AT 100% CAPACITY UTILISATION) Name of the packing materials Monthly reqd Average rate Monthly cost A) FOR ORAL LIQUID BOTTLE 530 2.25 11.93 P.P. CAPS 530 0.25 1.33 CARTOON 352 1 3.52 LABEL 575 0.2 1.15 CORRUGATED BOX 18 17 3.06 OTHER PACKING MATERIALS XX XX 0.1 TOTAL 21.09 B) FOR TABLET STRIPS ALUMINIUM FOIL 300kg 150/kg 0.45 POLLY PAPERS 400kg 80/kg 0.32 02) PRINTED PLASTIC CONTAINER a) Container of 30 tabls 25500 nos. 3 0.77 b) Container of 500 tabls 1530 nos. 8 0.12 03) Cartoons 15200 nos. 1 0.15 TOTAL 1.81 Monthly reqd Average rate Monthly cost G) FOR CAPSULE EMPTY GELATIN CAPS 216000 PCS 80.00 1000 pcs 0.17 ALUMINIUM FOILS 135kg 150kg 0.2 BOX OF 100'S CAPS 600 pcs 3.00 pcs 0.02 BOX OF 20'S CAPS 1500 box 1.00 pcs 6000 box 0.50 pc BOX OF 30'S CAPS 2000 box .50 pc 0.05 GUM ADHESIVE ETC. L.S. 0.01 TOTAL….. 0.46 D) FOR OINTMENT TUBES OF 5 GM 10500 .40/PC 0.042 TUBES OF 25 GM 3000 .60/PC 0.018 TUBES OF 10GM 9000 .60/PC 0.054 CARTOON OF 5GM TUBES 10500 .40/PC 0.042 CARTTON OF 10GM TUBES 9000 .60/PC 0.054 CARTOON OF 25GM TUBES 3000 .60/PC 0.018 OUTER CARTOON OF 50'S 360 1.00/PC 0.004 TOTAL 0.232 TOTAL MONTHLY COST OF PACKING MATERIALS 23.59 Total annual cost of packigng materials at 100% Capacity 283.08 SO, at 40% cap(1st yyear) 113.23 50% cap(2nd year) 141.54 60% cap(3rd year) 169.85 70% cap(4th onwards) 198.16 III) STATEMENT OF SALARY AND WAGES IN TOTAL (URL removed). Particulars Nos. of Heads Amount 1) Office Staff 16 327600 2) Sales and Marketing Staff 49 919800 3) Administrative Staff 3 163800 4) Distribution Staff 6 84420 5) Factory staff 40 665280 6) Labortory(Workshop) Staff 9 352(Phone # removed)700 Say Rs.25.14 lakhs N.B. There will be an opening for 123 heads in the 1st year and cost for Salary and wages will be Rs.25.14 lakh. A provision for 5% increase has been considered from 3rd year and+A649 onwards. Statement of Salary of Office Staffs NOS PAY SCALE AMOUNT ACCOUNTS OFFICER 1 4000 4000 ACCOUNTANT 1 2000 2000 ACCOUNTS CLERK 4 1500 6000 OFFICE ASSISTANT 4 1500 6000 STENOGRAPHER 1 1800 1800 RECEPTIONIST 1 1500 1500 TYPIST/CLERK 2 1500 3000 OFFICE PEON 2 850 1700 TOTAL 16 26000 YYEARLY(Rs.26,000x12) 312000 Fringe benefit-5% 15600 Total 327600 STATEMENT OF SALARY OF MARKETING AND SALES STAFFS NOS PAY SCALE AMOUNT MARKETING MANAGER 1 6000 6000 REGIONAL SALES MANAGER 2 4500 9000 AREA MANAGER 6 3000 18000 PROFESSIONAL SERVI CE REPRESENTATIVE 40 1000 40000 TOTAL 49 73000 YEARLY(Rs.73000x12) 8,76,000.00 Add: EARING BENEFIT 43,800.00 TOTAL 9,19,800.00 STATEMENT OF SALARY OF ADMINISTRATIVE STAFFS NOS PAY SCALE AMOUNT ADMINISTRATIVE OFFICE 1 6000 6000 SECRETARY 1 4000 4000 PURCHASE OFFICER 1 3000 3000 TOTAL……. 3 13000 YEARLY(Rs.13000x12) 1,56,000.00 Fringe Benefits-5% 7,800.00 TOTAL 1,63,800.00 STATEMENT OF SALARY OF DISTRIBUTION STAFFS 1) STORE IN CHARGE 1 2000 2000 2) DELIVERY VAN DRIVER 1 1500 1500 3) DELIVERY VAN HELPER 1 1000 1000 4) DELIVERY MAN 1 800 800 5) HELPER 2 700 1400 TOTAL 6 6700 YEARLY(RS.6700X12) 80,400.00 FRINGE BENEFIT-5% 4,020.00 TOTAL 84,420.00 STATEMENT OF WAGES OF FACTORY STAFF NOS PAY SCALE AMOUNT 1) MACHINE OPERATOR 6 2000.00 12000.00 2) SKILLED WORKMEN 8 1400.00 11200.00 3) SEMI SKILLED WORKMEN 8 1500.00 12000.00 4) UNSKILLED WORKMEN 10 900.00 9000.00 5) SWEEPER 2 800.00 1600.00 6) ELECTRICIAN 2 1200.00 2400.00 7) HELPER 2 800.00 1600.00 8) SECURITY 2 1500.00 3000.00 TOTAL 40 52800.00 YYEARLY(RS.52,800.00X12) 6,33,600.00 FRINGE BENEFIT-5% 31,680.00 TOTAL 6,665,280.00 STATEMENT OF SALARY OF LABORATORY(FACTORY) STAFFS NOS PAY SCALE AMOUNT 1) PRODUCTION MANAGER/CHIEF CHEMIST 1 6000.00 6000 2) QUALITY CONTROL CHEMIST 1 5000.00 5000 3)MANUFACUTURING CHEMIST 1 5000.00 5000 4) ASST. CHEMIST 2 3000.00 6000 5) LABORATORY ASST 4 1500.00 6000 TOTAL 9 28000 YEARLY(RS.28,000X12) 3,36,000.00 FRINGE BENEFIT-5% 16,800.00 TOTAL 3,52,800.00 IV) REQUIREMENT AND COST OF POWER (URL removed). NAME OF THE EQUIPMENT H.P. 1) AUTOMATIC ROTARY TABLETING MACHINE 3 2) COLLOID MILL 2 3) FILTRATION UNIT 0.5 4) TABLET COATING AND POLISHING PAN 1 5) TABLET DRYER 1 6) AUTOMATIC STRIPING MACHINE 1 7) VACUMETRIC BOTTLE FILLING 0.05 8) CAP SEALING MACHINE 0.5 9) AUTOMATIC LABEL CUMING AND PASTING MACHINE 0.05 10) (URL removed)T CHAIN CONVEYOR BELT 0.5 11) HORIZONTALTYPE MASS MIXTURE 5 12) STIRRER 2 13) CAVINET DYRE FOR BOTTLE DRYING 1 14) WATER PUMP, GENERATING AND LIGHTING ETC 5.5 15) SEMI AUTOMATIC BOTTLE WASHING AND BRUSHING MACHINE 0.5 16) OTHER MISC. MACHINERIES 1 25 HP APPROX 18 KW COST OF THE POWER 2.00(AT 100% capacity utilisatilon) 18.00x8x300x1.50 = Rs.86,400.00 Say Rs.0.86 lakhs (ANY EXCESS POWER REQUIRE FOR THE PROJECT WILL BE TAKEN CARE BY THE COMPANY AS THE NEED OF THE PROPOSED PROJECT) 1ST YEAR @ 40% Cap. Afilisation 0.35 lakhs 2nd Year @ 50% Cap. Afilisation 0.43 lakhs 3rd year @ 60% Cap. Afilisation 0.52 lakhs 4th and onwardes @ 70% Cap. Afilisation 0.60 lakhs V) ADMINISTRATIVE EXPENSES ITEMS (RS. IN LAKHS) 1) INSURANCE OF FIXED ASSETS 0.25 2) POSTAGES AND TELEPHONE 0.25 3) AUDIT FEES AND LEGAL EXPENSES 0.1 4) CONVEYANCE 0.25 5) STATIONERY 0.15 6) MISC, EXPENSES 0.12 TOTAL 1.12 Lakh(on 1st year) VI) SALES AND MARKETING EXPENSES 1) TRAVELLING EXPENSES FOR SALE PERSONNEL@ 3% ON SALES. 2) MARKETING AND SELLING EXPENSES @ 2% ON SALES 3) SALES PROMOTIONAL EXPENSES @ 5% ON SALES 4) DISTRIBUTION EXPENSES @ 3% ON SALES TOTAL 13% ON NET SALES VALUE PER YEAR TOTAL RECURRING EXPENSES(PER MONTH) (Rs. in lakhs) Particulars 1st year 2nd year 3rd year 4th year CAPACITY UTILISATION 40% 50% 60% 70% RAW MATERIALS 15.91 19.88 23.86 27.84 PACKING MATERIALS 9.44 11.80 14.15 16.51 SALARY AND WAGES 2.10 2.10 2.20 2.31 POWER 0.30 0.40 0.05 0.05 REPAIR AND MAINTENANCE 0.15 0.16 0.18 0.20 CONSUMABLES 0.15 0.16 0.18 0.20 TOTAL 27.78 34.14 40.62 47.11 CHAPTER-IV COST OF PROJECT AND MEANS OF FINANCE (RS. IN LAKHS) A) TOTAL CAPITAL OUTLAY 1) LAND AND BUILDING 52.52 2) PLANT AND MACHINERY 53.75 3) OTHER FIXED ASSETS 12.07 4) INSTALLATION AND ELECTRIFICATION 17.49 5) FURNITURE AND FIXTURES 3.29 6) PRELIMINARY AND PREOPERATIVES 12 7) CONTINGENCIES 3.79 8) MARGIN MONEY FOR WORKING CAPITAL 17.88 162.79 9) BANK BORROWING FOR WORKING CAPITAL 53.6 10) CAPITAL OUTLAY 216.39 B) MEANS OF FINANCE 1) SHARE CAPITAL 25 2) TERM LOAN (4.67% OF PROJECT COST) 1009 3) UNSECURED LOAN 28.79 4) BANK FINANCE @ 75% OF WORKING CAPITAL 53.6 TOTAL 216.39 CHAPTER-V FINANCIAL IMPLICATIONS: This capter gives the financial projection regarding sales realisation, profitability statement, computation of working capital and computation of interest, taxation, cash flow, statement, and balance sheet, nreak even point, debt service coverage ration and pay back period have also been worked out in details to show in the financial viability of the project. PROJECT COST AND MEANS OF FINANCE The project is estimated to cost Rs.1662.79 lakhs including margin money for working capital of Rs.17.88 lakhs. The amount is proposed to be financed as under: 1) SHARE CAPITAL 25.00 LAKHS 2) TERM LOAN 109.00 LAKHS 3) UNSECURED LOAN 28.79 LAKHS 162.79 LAKHS SHARE CAPITAL: The promoters capital of Rs.25.00 lakhs will be contributed by the entrepreneurs themselves by issuing shares. TERM LOAN The term loan of Rs.109.00 lakhs is proposed to be obtained from Industrial Development Bank of India. The loan is proposed to be repaid in 6 years by 11 half yearly instalment which will be commenced from the after 1 year Moratorium I.e. at the end of 1st operating year. The loan will bear an interest @ 17.5% annum. COMPUTATION OF WORKING CAPITAL: Details computation of working capital requirement made in appendix 5.1 bank finance has been considered to bew 75% of the total Investment towards working capital while considering the same Provision for one month stock of raw materials one week work-in-process, 3 weeks stock of finished goods and 30 days receivable(at cost) has been kept). BALANCE SHEET: Project Balance Sheet for 7 years has been computedn in appendix 5.8 BREAK-EVEN POINT: Break-even point calculation for 3 year at maximum capacity utilisation has been computed in Appendix 5.9 DEBT SERVICE COVER AGE RATIO: D.S.C.R. has been calculated in appendix 5.6 INTEREST: Interest on term loan working capital has been shown in Appendix 5.4 COMPUTATION OF WORKING CAPITAL Particulars Basis Bank Finance 1st year at 40% cap. Utilisation 2nd year at 50% cap. Utilisation 3rd year at 60% cap. Utilisation 4th year at 70% cap. Utilisation Total amount Bank finance Margin money Total amount Bank finance Margin money Total amount Bank finance Margin money Total amount Bank finance Margin money Raw and packing 1 month 75% 15.91 11.93 3.98 19.88 14.91 4.97 23.86 17.89 5.97 27.84 20.88 6.96 materials work-in-process 1 week 75% 6.95 5.21 1.74 8.54 6.4 2.14 10.16 7.62 2.54 11.78 8.83 2.95 finished goods 3 weeks 75% 20.84 15.63 5.21 25.61 19.21 6.4 30.47 22.85 7.62 35.33 26.5 8.83 Receivables(at cost) 1 month 75% 27.78 20.83 6.95 34.14 25.6 8.54 40.62 30.16 10.16 47.11 35.33 11.78 71.48 53.6 17.88 88.17 66.12 22.05 105.11 78.82 26.29 122.06 91.54 30.52 DEPRECIATION CALCULATION IN W.D.V. METHOD YEAR BUILD COST @ 5% p.a. Plant & M/C @ 10% p.a. Other Assets @ 15% p.a. Total FIRST YEAR Purchase during the year 51.31 45.06 33.84 130.21 Depreciation 2.57 4.51 5.08 12.16 Second Year: Opening Balance 48.74 40.55 38.76 128.05 Depreciation 2.44 4.06 4.31 10.81 THIRD YEAR Opening Balance 46.3 36.49 24.45 107.24 Depreciation 2.32 3.65 3.67 9.64 FOURTH YEAR Opening Balance 43.98 32.84 20.78 97.6 Depreciation 2.2 3.28 3.12 8.6 FIFTH YEAR: Opening Balance 41.48 29.56 17.66 88.7 Depreciation 2.09 2.96 2.65 7.7 SIXTH YEAR: Opening Balance 39.69 26.6 15.01 81.3 Depreciation 1.98 2.66 2.25 6.89 APPENDIX:5.3 ESTIMATED SALES: The sale figures of the proposed production at 100% capacity utilisation per annum has been calculated as follows:- BY SALE OF AMOUNTS(RS. IN LAKHS) LIQUIDS 734.04 TABLETS 290.28 CAPSULES 116.16 OINTMENTS 61.32 1201.8 ADD: EXCISE DUTY @ 15% 180.27 TOTAL 1382.07 Hence, the sale value of the finished products in different years as per capacity utilisation are as follows:- YEAR CAPACITY UTILISATION TOTAL AMOUNT P.A. 1ST YEAR 40% 552.83 2ND YEAR 50% 691.04 3RD YEAR 60% 829.24 4TH AND ONWARDS 70% 967.45 ESTIMATES OF PRODUCTION AND SALES (At 100% capacity utilisation) (URL removed). PRODUCT MONTHLY PRODUCTION UNIT SELLING RATE(TRADE PRICE) (RS) MONTHLY AMOUNT TOTAL ANNUAL AMOUNT A) ORAL LIQUIDS 1) Hilcher Suspension 52800 bottles 13.75 per bottle 7.26 2) Hilcer plus Suspension 26400 11 2.9 3) Andhya Suspension 22000 14.3 3.15 4) Neufen plus Suspension 22000 14.3 3.15 5) Naulk Syrup 22000 9 1.98 6) Carmolytie Syrup 44000 23.9 10.52 7) Pap plus syrup 88000 27.5 24.2 8) Pap plus drop 22000 12.9 2.84 9) Green liv syrup 88000 25.3 22.26 10) Green liv drops 22000 12 2.64 11) Protohem Syrup 44000 25.8 11.35 12) Live long syrup 22000 22.5 5.61 TOTAL 475200 Less: Physicians sample 9500 bottles 19.57 a) @ 20% b) Breakage wastage, leakage, expiry @ 5% 23760 4.89 356400 bottles 73.4 NET SALES REALISATION (AFTER 20% TRADE DISCOUNT) B) TABLETS 61.17 734.04 1) Neufen plus tablet 5 lacs nos. 105/100 tab 5.25 2) Metronidazole Tablets 2.5 lacs 80/500 tab 0.4 3) Diloxanide furo 2.5 lacs 50/100 tab 1.25 4) Almole tablets 2.5 lacs 95/500 tab 0.48 5) Ibuprofen 200mg tablets 2.5 lacs 80/500 tab 0.4 6) Papf. Plus tablet 2.5 lacs 5/30 tab 1.25 7) Green Liv tablet 2.5 lacs 30/30 tab 2.5 8) Bone cal tablet 2.5 lacs 32/30 tab 2.67 9) Timed tablet 5.0 lacs 305/100 tab 15.25 10) Timed IV 2.5 lacs 330/100 tab 8.25 TOTAL 30.0 LAKHS NOS. 37.7 452.4 LESS: Physicians sample a) @ 20% 6.00 lakhs nos. 7.54 b) Breakage, wastage, expiry etc.@ 3% 0.9 lakhs nos. 1.13 23.10- lakhs nos. 29.03 MONTHLY AMOUNT TOTAL ANNUAL AMOUNT NET SALES REALISATION (After 20% Trade Discount) 24.19 290.28 C) CAPSULES 1) Allendex 12000 unit(1 unit = 10 caps) 19.2 2.3 2) Almox 500 6000 units 39 2.34 3) Almox 250 12000 units 26 3.12 4) Lactotetra 12000 unit 21 2.52 5) Protohem 12000 unit 15 1.8 TOTAL: 54000 UNIT 12.08 Less: a) Physician sample @ 15% - 8100 unit 1.8 10.28 b) Breakage, wastage, leakage, expiry @ 5% =2700 0.6 9.68 LAKHS TOTAL So, yearly sale at 100% capacity = 116.166 lakhs D) OINTMENTS: 1) Brunax 12000 unit 18.00 2.16 2) Bactosprim 6000 units 14.00 0.84 3) Asebi 6000 units 22.50 1.35 4) Maelop(veginale) 6000 units 17.00 1.02 5) Stanan cream 6000 units 17.00 1.02 TOTAL 36000 UNITS 6.39 Less: a) Physican sample @ 15% = 5400 unit 0.96 5.43 b) Breakage, wastage, leakages expiry @ 5% = 18700 units 0.32 TOTAL 5.11 lakhs So, yearly sale at 100% capacity = 61.332 lakhs COMPUTATION OF INTEREST AND REPAYMENT SCHEDULE A)TERM LOAN YEAR HALF OPENING BALANCE REPAYMENT CLOSING BALANCE INTEREST @ 17.5% PER ANNUM 1st 1st 109 ….. 109 9.54 2nd 109 9 100 9.54 19.08 2nd 1st 100 10 90 8.75 2nd 90 10 80 7.88 16.63 3rd 1st 80 10 70 7 2nd 70 10 60 6.13 13.13 4th 1st 60 10 50 5.25 2nd 50 10 40 4.38 9.63 5th 1st 40 10 30 3.5 2nd 30 10 20 2.63 6.13 6th 1st 20 10 10 1.75 2nd 10 10 nil 0.88 2.63 B) WORKING CAPITAL LOAN: Rs.53.60 lakhs interest @ 18% p.a. = Rs.9.65 lakhs per year C) TOTAL INTEREST YEAR INTEREST ON TERM LAON INTEREST ON WORKING CAPITAL LAON TOTAL AMOUNT 1ST 19.08 9.65 28.73 2ND 16.63 9.65 26.28 3RD 13.13 9.65 22.78 4TH 9.63 9.65 19.28 5TH 6.13 9.65 15.78 6TH 2.63 9.65 12.28 PROJECTED PROFITABILITY STATEMENT PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Capacity utilisation 40% 50% 60% 70% 70% 70% A) Gross Sales 552.83 691.04 829.24 967.45 967.45 967.45 Less: Ex-duty 71.87 89.84 107.8 125.77 125.77 125.77 Net Sales 480.96 601.2 721.44 841.68 841.68 841.68 B) Cost of Sales I) Raw materials 190.88 238.6 286.32 334.04 334.04 334.04 ii) Packing materials 113.23 141.54 169.85 198.16 198.16 198.16 iii) Consumable stores 1.8 1.98 2.18 2.4 2.4 2.4 iv) Power and fuel 0.36 0.42 0.5 0.59 0.59 0.59 v) Repair and maintenance 1.8 1.98 2.18 2.4 2.4 2.4 vi) Salary and Wages 25.14 25.14 26.4 27.72 29.11 30.56 vii) Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 TOOTAL(B) 345.47 420.47 497.07 573.91 574.4 575.01 C) Gross Profit(A-B) 135.59 180.73 224.37 267.77 267.28 266.64 D) Sales & Marketing Exp 62.52 78.16 93.79 109.42 109.42 109.42 E) Administrative Exp. 1.12 1.23 1.35 1.49 1.49 1.49 F) Deferred exp written off 3 3 3 3 - - G) Profit before interest 68.95 98.34 126.23 153.86 156.37 155.73 H) Interest payable 28.73 26.28 22.78 19.28 15.78 12.28 PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Operating Profit 40.22 72.06 103.45 134.58 140.59 143.45 Tax provision 16.00 29.00 41.00 54.00 56 57 40% approx Director's Remuneration 0.96 0.96 1.2 1.44 1.8 2.4 Net Profit 23.26 42.1 61.25 79.14 82.79 84.05 Add: Back Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 Cash Accruals 35.42 52.91 70.89 87.74 90.49 90.94 Repayment 9.00 20.00 20.00 20.00 20.00 20.00 DEBT SERVICE COVERAGE RATIO(D.S.C.R.) PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR A) Debt Servicing fund Cash accruals 428.49 35.42 52.91 87.74 90.59 90.94 Interest on Term Loan 67.23 19.08 16.63 9.63 6.13 2.63 TOTAL 495.72 54.5 69.54 97.37 96.72 93.57 B) DEBTS Repayment on term loan 109 9 20 20 20 20 Payment of interest on 67.23 19.08 16.63 9.63 6.13 2.63 Term laon TOTAL 176.23 28.08 36.63 29.63 26.13 22.63 C) D.S.C.R.(A/B) 2.81:1 1.94:1 1.9:1 3.29:1 3.7:1 4.13:1 PROJECTED CASH FLOW STATEMENT: A) Inflow Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 1) Share Capital 25 - - - - - - 2) Unsecured loan 28.79 - - - - - - 3) Term laon 109 - - - - - - 4) Increase in Working 53.6 Capital Loan 5) Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 6) Deferred exp. 3.00 3.00 3.00 3.00 - - written off 7) Profit after depreciation 68.95 98.34 126.23 153.86 156.37 155.73 but before interest TOTAL 162.79 137.71 112.15 138.87 165.46 164.07 162.62 PROJECTED CASH FLOW STATEMENT B) OUTFLOW Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 1) Fixed assets including 132.91 contingencies 2) Deferred exp. 12 3) Increase in Current Assets 71.48 16.69 16.95 16.95 4) Repayment of Term Loan 9 20 20 20 20 20 5) Interest 28.73 26.28 22.78 19.28 15.78 12.28 6) Taxation 16 29 41 54 56 57 7) Directors remuneration 0.96 0.96 1.2 1.44 1.8 2.4 TOTAL(B) 144.91 126.17 92.93 101.92 111.67 93.58 91.68 Net surplus/ 17.88 11.54 19.22 36.95 53.79 70.49 70.94 Deficit Opening Balance 17.88 29.42 48.64 85.59 139.38 209.87 Closing Balance 17.88 29.42 48.64 85.69 139.38 209.87 280.81 PROJECTED BALANCE SHEET LIABILITIES Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Share Capital 25 25 28.79 28.79 28.79 28.79 28.79 Unsecured Loan 28.79 28.79 Term loan 109 100 80 60 40 20 - Bank borrowing - 53.6 53.6 53.6 53.6 53.6 53.6 Reserve and Surplus (net profit) - 23.26 65.36 126.61 205.75 288.54 372.59 TOTAL 162.79 230.65 252.75 294 353.14 415.93 479.98 ASSETS: 1) Fixed Assets(Net 132.91 120.75 109.94 100.3 91.7 84 77.11 depreciation 2) Deferred exp. 12 9 6 3 3) Cash/Bank Balance 17.88 29.42 48.64 85.59 139.38 209.38 280.81 4) Current Assets - 71.48 88.17 105.11 122.06 122.06 122.06 5) Other than cash Balance TOTAL 162.79 230.65 252.75 294 353.14 415.93 479.98 BREAK EVEN ANALYSIS (On 3rd year basis at 60% capacity utilisation) A) SALES 721.44 B) VARIABLE COST: 1) Raw and packing materials 456.17 2) Consumables 2.18 3) Power and Fuel 70% 0.35 4) Selling and distribution exp. 93.79 5) Admn. Exp 1.35 6) Interest on Working capital loan from bank 9.65 563.49 C) CONTRIBUTION(A-B) 157.95 D) FIXED COSTS: 1) Salary and Wages 26.4 2) Power and Fuel 30% 0.15 3) Depreciation 9.64 4) Interest on Term Loan 13.13 5) Repair and maintenance 2.18 51.5 E) B.E.P. FIXED COSTS X 100 51.50 X 100% 32.61 CONTRIBUTION 157.95 CHAPTER-1 M/S Apan Bio-Tech INTRODUCTION: The 21st. Century will be remembered for greater technology achievement, including greater understanding of the atoms structure, in formulation explosion that has resulted from advance in Computer Technology the information obtained from the space exploration. When measures in terms of its impact on the peoples lives though, 21st. Century, “ might as well be called a ‘Drug Age’. Although the Drugs alone cannot be considered to be sole reason for the progress in medicine achieved in the (URL removed)tury a glance back to its as 40 years ago indicated that “ at that time there were no antibiotics, no corticoids, sulpher drugs only few vitamins no tranquilizers, no antuhypettensives, no oral contraceptice drugs were available. “ Many great strides however, have been made in the last 40 years. So many disease have been controlled or irradicated and may experts agree that by the end of this century Pharmaceutical may be of greater importance in cure lives because of anticipated although break through in the field of neuro biology, celluler differentiation, genetics in wonder change. Nobel prize winning Bio-Chemist labeled drug as “ One of the greatest blessings by but perhaps the greatest blessings of our time”. Although every one whether friend or for of the Pharmaceutical Industry recognize the contribution of the industry to the health and welfare of the public availability of Pharmaceutical to the general public have merely occurred by chance. Pharmaceutical Industry concerned with Research and Development but it is almost important to keep in mine in the Pharmaceutial Marketing System(Working Procedure, Distribution, Re-Distribution, Correct Information). The Pharmaceutical marketing system is placing the drug available at the right time, at the right place at the right quantity, at a reasonable price. The Development of the industries post independence period in various fields of growth reflects advancement of Indian economy and Technology which have been acknowledged with surprise and appreciation by the other developing countries of the world. But spectural development of Pharmaceutical Industry has perhaps surprised all the development records in other spheres of activities. For example from Rs.10 crores investment during 1948 it has uptil 2004-2005 are going to be produced worth of Rs.4.112 crores ( i.e. completion of 9th plan) with a base capital of Rs.1000 crores . The profitability margin and further increase scope of its inherent expansion possibilities in the investment and product ratio at present with the technical expertise and other basic infrastructures facilities, involving availability of indegeneous raw materials, at cheaper rates in abundance, low cost of wages and vast and market in India and abroad. In fact, since pre-independence till 1972-73 these drug industries were completely under the fold of the big monopolist and multinational companies who have been exploiting the market and its profit charging the generic names and brand name of one decicines to other, neglecting the capacity and the purchasing limitations of the public in India just to make the utilization of their Technical capacities and market trend. The result is that against the genetic profit ratio, the coverage of population under medicinal treatment and modern drug therapy is only 30 to 35% approximately, the removing percentage being deprived of this live saving drugs out dire poverty. The survey of the population growth and the present trend business of these drug industries by these reveals two fundamentals steps to be taken which a bonovolent government cannot was to brook further delay in the interest of national economy as also of the interest of the common mass. The two positives thinking that were deemed to be adopted comprised of:- i) to extend facilities of medicinal treatment to the people and to bring more proper sections under this scheme by ensuring of medicine at cheaper rates and ii) To grave and combat the monopolistic endeavour of the big houses as far as practicable through prolonged process. The attempts, though not seen to be a gigantic success, undoubtedly appear to be fruitful and laudible steps to achieve the aim and the success of the implementation of the project. The Pharmaceutical industry plays an indispensable role in the health care of the entire population of the country whether rural or urban. The Pharmaceutical production commenced in India way back in 1901 when a unit to manufacture formulations out of important drugs was set up in West Bengal. The growth of this industry remained negligible upto 1947. During the last 25 years, the India Pharmaceutical Industry has been rapid strides in both formulations and bulk drugs. In fact the pharmaceuticals industry has made a worth while contributions to the national economy. The comparative performance of the Drug Industry is given in the following table:- (Rs. in crores) Year Production of bulk drugs Production of formulations Imports of Drugs and Pharmaceuticals Exports of drugs and pharmaceutical 2001-02 90.00 400.00 46.90 43.14 2002-03 226.00 1150.00 120.03 71.66 2003-04 377.00 1827.00 215.62 217.49 2004-05 640.00 3420.00 625.72 856.90 2005-06 880.00(Target) 4890.00(Target) 375.00(Target) 780.00(Target) Prime facie, the achievements of the drug industry in India seem satisfactory. However, in reality there has been considerable short fall in the production compared to the plan targets during the 7th and 8th plans. The shortfall in the production of bulk drugs is over 40 percent and in the case of formulations is about 35 per cent. According to the studies and projections made by National Council of Applied Economic Research (NCAER), the domestic demand for medicines by the year 2000AD, when the country is supposed to achieve the objective of “Health for All”, will be Rs.16,000 crores. This is more than four times the current production levels. In addition the country will have to produce sufficient surplus for exports. The value of the free world ethical pharmaceutical market in 1990 was around US 165,200 million. In 1980 the value of the total world market was US 62,315 millions, which has almost tripled during this decause. The U.S. Pharmaceutical market accounts for almost 30 per cent of the world market. In the table below the list of than largest Pharmaceutical market in the world has been given. The table shows that the perceptia expenditure of drug in India is very low compared to developed countries. (URL removed). Country Percentage of world market 1 U.S.A. 30 2 JAPAN 17.6 3 FRG 9 4 FRANCE 6 5 IALY 6 6 UK 3 7 CANADA 2 8 SPAIN 2 9 INDIA 1.5 10 BRAZIL 1.4 Today in India there are as many as 20,000 units, big and small, engaged in the manufacture of pharmaceuticals. Nearly 500 of these are in the orgganised sector and majority of balance units belong to the small scale sector. Collectively the industry generates employment for almost 10 lakhs people. On the national level, Gujrat accounts for 45 percent of the total pharmaceutical production in the country. From the above it can be seen that there exist vast opportunities in the field of pharmaceutical industry in India as the market for formulation is estimated to grow at an average rate of 11-12 per cent annually in coming years. As indicated earlier, the per capital consumption of drug formulation is very low compared to many developed countries based on the production value of formulation in India and its export in 1991, which are Rs.3560 crores and Rs.1230 crores respectively and with a nominal import, the per capita consumption of drug formulation in North- Eastern Region is again very low on the conservative basis if we consider per capital consumption of drug formulating in Eastern region at Rs.15/- the total current demand of drug formulations in the Eastern region can be estimated at approximately Rs.50 crores. Considering the increase in literacy, Govt. budget on health availability of medical professionals and population etc. in coming years, the demand of drug formulations in the Eastern region will have a considerable growth. Most of the requirements of drug formulation of this region is met by the supplies from outside the region. In view of the above, there appears to be bright prospect for this unit in marketing its products provided proper marketing strategy is adopted to achieve the desired market share required for its viability the product formulations have been identified keeping in view the requirements of such formulation in this region. MARKETING ARRANGEMENT: The promoter group is highly experienced in marketing of pharmaceutical products. So the company should not face any difficulty in formulation a suitable marketing arrangement. The products will be sold through distributors and as well as a unit for marketing department of the company will look after the marketing and distribution activities of the company. There will be an vast experienced Marketing Director who will lead the marketing department. The total market will be divided into two regions to be looked after by Regional Sales Manager. There will be Area Sales Managers and under them 40 numbers of Professional Service Representatives have been proposed to cover the whole market territory. Thus, with a professional approach in selling and back ground of promoters, the company should not face any problem in marketing its products. The pharmaceutical industry is a very important industry sector as the health care of millions of people of our country depends on it. At present India has top produce more than Rs.16,000 crore worth of drugs and pharmaceuticals to substantially fulfill its solemn commitment of Health for all by the year 2000. The industry has grown in a rapid pace and production value of formulations in 1990-1991 was Rs3560 crores and export from India also grew from 4 million in 1952-53 to Rs.12,500 crores in the year 1990-91. Accordingly various pharmaceutical industry have set up in different parts of the country to boost the production of drugs formulations needs for the “Health Care” of millions of the people of our country. In Eastern region, most of the requirements of drugs formulations are met from suppliers from outside of the region. There are not sufficient manufacture West Bengal and very in Assam producing formulations with low production capacity. In view of the above consideration the demand and marketing opportunities in drug formulations into the Eastern Region a group of entrepreneurs from Assam and West Bengal has incorporated “ ALMAS LABS PRIVATE LIMITED” – at Naihati, 24 Parganas to manufacture various drug formulations with the adequate modern equipment. The company Proposes to land for the factory of 50 kathas or less and civil works will start if funds are available . The promoter group is having long experience in pharmaceutical industry and is quite conversant with all aspects of the same industry. WORLD PRODUCTION OF DRUGS-1990 MILLION US Global 96,000 Indian Production as % of World Population 8.8% Indian Population as % of World production 251/2 PRICING: A new Drug Policy announced recently explains that in order to increase production which will lead to ultimate lowering of price drugs it is proposed to reduce the existing span of price control over drugs and pharmaceuticals. However, a very strong monitoring system will be evolved. As against the existing three categories of drugs and pharmaceuticals hereafter there will be two categories. The first category will consist of drugs necessary for National Health Programme and the second category that of essential drugs. Formulation, of the first category would have a MAPE (Maximum Allowable Post Manufacturing Expenses) of 75% and those of the second category of 100%. A high level expert committee has drawn up a list of drugs to be included in the second category. A new Drug price control order(DPCO) has been announced after the finalisation of drugs in two categories. The Government has retained the right to bright within ambit of control any drug in the recontrolled category whenever considered necessary. Prices of drugs in the controlled category would be constantly and closely monitored and an effective monitoring system developed for those. Government has the major role in fixing and controlling prices. It frames the policy, covers the process formula and monitors and approve prices. The main objective if the new drug policy and the new price control order into make avail as high quality. The new price norms recognize two fundamental economic principles First, the price of drugs like that of anything else is determined by cost of production. A corollary is that price reduction is possible only if the cost of production is brought down, second, unless a reasonable return is assured producers will not be encouraged to increase production of essential medicines. It is imperative to encourage cost, effective production through technological improvement, Productivity improvement and economic scale of manufacture need to be promoted by encouraging and rewarding efficiency and by removing obstacles to growth. The policy contains several measures and programmes designed to achieve this. Prices of medicines in India are not high, either in reaction to the cost of production of when compared to prices prevailing in other countries, developed and developing. This is a fact borne out experiences and confirmed by official studies and reports. Inspite of spiralling costs drug prices have not rised to the extend prices of other essential commodities and services have increased. The average annual increase in drug prices during the 15 year period 1990-2000 to 2005-2006 was 6% as against 17% in the case of all commodities. Drug prices compare very favourably with those of other essential commodities and services. Medicines today offer best value for money. HOW EXPENSIVE ARE MEDICINES ? Average cost of Average cost of common Medium per day goods of daily consumption Medicine ___________________________________________________________________________ Rs. Rs. Common headache 0.50 Cup of tea 1.00 Common allergy 0.30 Thali meal 8.00 Common cold 0.50 Milk(Half lit) 3.00 Gas trouble(Antacid) 0.50 Egg 0.90 Asthena 0.75 Banana 0.50 Diarrhoea 0.60 Soft drink 3.25 Fever(Antiobiotic) 2.00 Subarban Train 3.00 Ticket(Return) Amoebicides 1.50 Bus Fare 0.50 Tuberculosis(Multi drug 3.50 Inland letter 0.50 Treatment) Leprosy 0.30 News paper 1.80 Diabetees 0.20 Public Telephone calls 2.00 Blood Pressure 0.75 Packet of Cigarette(Ordinary) 4.00 Anging(Chest pain) 1.75 Artharities 1.75 PRODUCTS, ITS USES AND MARKET PROSPECT: The major products proposed in the unit are drugs formulations in the form of oral liquid and tablet and capsules and ointment in near future. The list of the products in their trade name proposed to be manufactured by the unit and the indications where they are used are given below:- NAME OF THE PRODUCT all proposed USERS ORAL PRODUCT A) Hilcer Suspension Antacid B) Hilcerplus suspension Antacid specific C) Andys Suspension Anti Diarrheal D) Neufen Plus Suspension Anti implemmatory Annalgesic Antipyretic E) Nulka Syrup Alkali Syrup F) Carmolytic syrup Carmolitic Anzym G) Pulp Plus Syrup Appetiser and Restorative Tonic H) Pulp plus drop Apetiser and Restorative Tonic I) Green Liv Syrup Liver Dysfunction J) Green Liv Drops Liver Dysfunction K) Protohem Syrup Iron Therapy L) Live long drops Multivitamin Restorative Tonic TABLETS: Neufen Plus Analgesic, anti-inflammatory Diloxanide Furoate Anti-glartdasis Metronidazole 200 mg Anti Amobic Almol Antipyretic Ibuprofen Analgesic Palp Plus Appetiner Green Liv Liver dysfunction Bone Cal Calcium therapy Timed Tablet Anti Amobio Timed IV tablet Anti Amoebic Some of the formulations are quite latest in the Indian Drug Industry. CAPSULES: A) Alnadex Caps : Vitamin and Minerals with Lactobacilus B) Almox Caps(500) : Broad Spectrum Antibiotic C) Almox 250 : - do – D) Lactotetra 500 : A dose convenient broad Spectrum Ahlibiotic with Lacto. E) Protohem Caps : Iron Therapy for specially During Pregnancy and Lactation. OINTMENT: A) Stanan Cream : Antifungal Cream B) Burnex Oint : Latest KTF Combination for Cuts and Burns. C) Bactorprim Oint : Antilacterial Oint D) Ascoi Oint : For Cuts, Wonds and for any Dressing in above respect. E) Meclop Vag. Oint : Most effective Vag. Oint uses For Trichmoniasis and Painful Mensturation. THE PROJECT: THE MANAGEMENT-FACILITIES TOBE PROVIDED FOR: THE PROJECT: The proposed project will be modern sophisticated medicine formulation unit at Naihati, 24, Parganas, West Bengal (Proposed). All latest State of the art machineries and equipment will be used for the formulations. THE MANAGEMENT: The project is proposed to be implemented by a Private Limited Company under the name and style of APAN BIO-TECH PRIVATE LIMITED with the registered office at P-69,E Unique Park ,Behala ,Kolkata 700 034 , West Bengal. The company has already been incorporated in the year of 2005 and started the marketing since last 1 years. The management consisting of Mr. Ajit Kumar Nath , Mr. Asish Basu , Mrs Nath and Mrs Basu . who are successful Industrial and is well experienced in pharmaceutical business financially sound and fully capable of managing the pharmaceutical unit successfully. Sri Ajit Kumar Nath is the Managing Director and Sri Asish Basu is the key-personnel as Manager Marketing. The bio-data of all the Directors are enclosed and the functional responsibilities of 4 Directors are envisaged as follows:- ( WILL BE GIVEN IN DUE COURSE) FACILITIES PROPOSED TO BE PROVIDED: Initial teething problem the company experienced difficulty in organizing the delivery of the goods as needs to the valued customer due to dependents with the co-manufacturers and non availability of fund. The factory will have the other facilities modern factory. PROJECT COST: The company proposes to approach the Financial Institutes for financial assistance for the purchase of machinery and equipments, building and civil works, misc, fixed assets, pre-operative expenses, margin money for working capital. The cost of plant and machinery and misc. fixed assets estimated at Rs.80.39 lakhs inclusive of taxes, carriage, transportation, packing, forwarding, insurance charges etc, All the equipments will be available indigeneously. The detail list of equipments is enclosed herewith. FACILITY PROPOSED IN THE PROJECT: The proposed Drug Formulation industry aims at providing medicine for various diseases as discussed. The various sophisticated equipments proposed in the project and their uses in the proposed center. The unit in a position to tackle the growing demand for proper supply. Due to constant marketing and market development and advancement of technology and where MARKET IS READY FOR SALE, the facility of the project is so essential for setting up formulation factory. COST, PROFITABILITY AND OTHER FINANCIAL ASPECTS OF THE PROJECT: The financial projections for a period of 6 years operation of the unit and various ingredients of the cost of operation and annexed to the report. The cost of such ingredient have been taken report on the basis of the present price structure. The profitability has been worked out on the basis of production programme indicated assuming the production at 40% of the installed capacity in the first year, 50% in the second year and 60% in the third year and 70% in 4th year and onwards. RAW MATERIALS: The total requirement of raw materials after considering process loss @ 5% has been worked out as shown. The total cost of raw materials has been estimated at Rs.477.20 lakhs at 100% capacity. Utilisation and will vary in the same proportion at other utilization levels. PACKING MATERIALS: In Pharmaceutical industry, the cost of packing materials is one of the major components in the cost of manufacture. The cost of packing materials(inclusive of bottles, caps, lebels, which are generally considered as a part of raw materials) at 100% capacity utilization has been estimated at Rs.283.08 lakhs and will very in the same proportion at other capacity utilization level. The details estimate of the packing materials are shown. POWER AND FUEL: The cost of power based on the total connected load of 18 KW has been estimated at Rs.0.86 lakhs per annum as shown. MANPOWER AND PLANNING: The total manpower in the project will be 123 Nos. of persons as shown below: 1) Sales and marketing staff 49 2) Office Staff 16 3) Factory Staff 9 4) Factory workers/staff 40 5) Administrative staff 3 6) Distribution staff 6 ____ 123 ____ All the required manpower including the executive will be available locally. WATER: The requirement of the water for the factory and for other purpose involved and hence no effluent treatment measures are necessary as no hazardous effluent are committed in the unit. SCHEDULE OF IMPLEMENTATION: The major activities and their implementation schedule is shown as under: (URL removed). Activity From To 1) Site Development 2) Civil works including factory godown. Boundary wall 3) PLANT AND MACHINERY: Placement of orders 4) Receipt of the plant and machineries & other equipment at site 5) Arrangement of raw materials 6) Arrangement of power 7) Installation of machinery 8) Manpower training 9) Trial Run 10) Commercial Production from the factory 11) Commercial production from Co-Manufacturers Already processing PROCESS OF MANUFACTURE: The basic process of manufacturing of Tablets and oral liquids are given below: 5.01 Tablets: Tablets can broadly divided into three classes i,e, compressed tablets, sugar coated tablets and entire coated tablets. In the present manufacturing project only two classes of tablet would be prepared. a) General Process: The general process of making compressed tablets are:- i) Direct compression ii) Slugging and iii) Wet Granulation The ingredients that goes into the preparation of a tablet are mixed with some adhesive substances which are called binders. To improve the flow properties of granules in the hopper of the tablet machine. Flow regulators or glidents are added. A lubricant sometimes become necessary to over, come the tendency of the tablet to stick to the punches and dies. For proper disintrigation of the tablet in the system a disintigrator is to be added. If the total quantity of the material become insufficient for proper size of tablets. b) PREPARATION OF SLUGGING: When tablet ingredients are sensitive to moisture or can not stand temperature drying digging and when the tablet ingredients are having binding and cohesive properties, slugging is used to form granulations. It consists of precompressing the dry mixed ingredients with lubricants into sludge which are subsequently connected to the correct size of the granule and recompressed. c) PREPARATION BY WET GRANULATION: In this process, the power ingredients are weighed and blended thoroughly. The powder blend is then shifted through a screen of suitable fineness to remove or break up the lumps. The powder blends are then shifted through an escidlating granulator which brusics the minerals through a screen. Moist materials from the granulater are sprayed in this layer on large sheets of craft paper on shallow wire rays. The dried granules are compressed in tablet punching machine and thus uncoated tablets are prepared some of the tablets are required to be coated to protect the ingredients against the atmospheric oxyten or carbondioxide, to mask uppleasent taste and odour, to improve the appearances of unlocated tablets and to control the site of action of the drug etc. The steps involved in sugar coating may be sub-divided into the following: 1) Wated profing and sealing 2) Sub-coating 3) Runding 4) Colouring and finishing and 5) Polishing Often, the water proofing and sealing step is omitted, but with sensitive substances such as vitamin mixtures it is included. The water proffing is usually made up with arsenic free sheelac. Sub-coating involves alternately wetting the tablets with sub-coating solution and when particularly dry, sprinkling with dusting powder. This cause the tablet to be rapidly filled out. Rounding or smoothing involves application of heavy syrup so that a hard smooth surface is produced, colouring and finishing involves application of thinner coloured syrup in order to build up the tablet further and obtain the desired share of colour. ANNEXURE-XIX PROCESS FLOW CHART Receipt of materials Materials stores Sampling of all materials Qualification of received Raw materials Finalisation of components For formulations Rejected components & Materials stores. Weights and measuring of Components Mixing Granulations Compounding and processing TABLETS LIQUID SUSPENSION a) Tabeling a) Mixing b) Compressing b) Stirring c) Coating c) Filteration d) Inspecting d) Components preparation e) Filling f) Sealing g) Visual Inspection STORAGE BEFORE QUALITY CONTROL STORAGE BEFORE PACKING FILLING, SEALING AND PACKING FINISHED GOODS QUALITY INSPECTION FINISHED GOODS QUALITY INSPECTION FINISHED PRODUCT STORAGE LIBORATORY CONTROL EQUIPMENT WASHING AND CLEANING PLANT CAPACITY: The company proposes to manufactures formulations such as (i) Tablet, and (ii) Oral Liquids. In tablet section, based on the capacity of the tablet making machine having a capacity of 250-400 tablets per minute. The unit will be able to manufacture 1.2 lakhs tablets per day on single shift working. The oral liquids section has a filling machine, the capacity of which is 40 bottles per minutes. Thus the capacity of the unit will be 19200 bottles per day on single shift working. Accordingly, the annual installed capacity of the unit based on 300. Working days in a year has been estimated as below:- INSTALLED CAPACITY: PRODUCT PER DAY PER ANNUM TABLET 1.2 LAKHS NOS. 360 LAKHS NOS ORAL LIQUID 19200 BOTTLE 57.00 LAKH BOTTLES CAPSULES NOS 05.40 LAKHS TUBES OINTMENT 1200 TUBES 3.60 LAKHS TUBES The capacity utilization of the unit in the 1st year, 2nd year, 3rd year and onwards has been estimated at 40%, 50% and 60% respectively and accordingly the annual production of the unit will be as below:- YEAR CAPACITY ANNUAL PRODUCTION UTILISATION TABLE ORAL LIQUID (LAKHS NOS) 1st 40% 180 28.50 2nd 50% 198 31.55 3rd 60% 216 34.20 4th and onwards 70% 252 39.90 Although the unit will be capable of producing at much higher capacity, for the purpose of economic viability projections the above capacity utilization has been considered. TECHNICAL FEASIBILITY: 1) AVAILABILITY OF TECHNICAL : The technical know how of this project is available with the entrepreneur. 2) COLLABORATION IF ANY : NIL 3) TECHNICAL QUALIFICATION : As stated in the Bio-Data the entrepreneurs AND EXPERRIENCE OF THE are technically qualified and marketing ENTERPRENEUR as well as distribution net work of Pharmaceutial sales. 4) AVAILABILITY OF PLANT & MACHINERY : The plant and machinery are indigeneously available. The main manufacturer and suppliers are as follows:- 1. M/s United Engineering(Calcutta) 2. M/s Clit India(Bombay) 3. M/s Asoka Enterprise(Calcutta 4. M/s New Salcon Scientific Concern(Calcutta) 5. M/s Pharma Pack(Bombay) 6. M/s Pam Machinery Company(Bombay) 7. M/s Adair Dutta & Sons (Calcutta) 8. M/s Geolite India Ltd(Calcutta) 9. M/s Gansons Engineers Pvt. Ltd.(Madras) 10. M/s The Scientific Apparatus Company (Calcutta) 5) EXPECTED LIFE OF MACHINERIES : 15 years and above 6) AVAILABILITY OF RAW MATERIALS :Indigeneous(all are available in the . . local market of Calcutta, Bombay, . Hyderabad and Damau Free Port. 7) STANDARDISATION OF QUALITY :Quality Control arrangement both for CONTROl raw materials and Finished product have been provided in the project. ORGANISATION CHART BOARD OF DIRECTORS MANAGING DIRECTOR DIRECTOR FINANANCE DIRECTOR MARKETING DIRECTOR PRODUCTION MANAGER MARKETING MANAGER PRODUCTION MANAGER CHIEF CHEMIST ACCOUNTS OFFICER REGIONAL REGIONAL QUUALITY MANUFACTURING ACCOUNTS RECEPTIONIST SALES SALES CONTROL CHEMIST ACCOUNTANTS OFFICE MANAGER MANAGER CHEMIST CLERK ASSTT. STENO ETC. AREA AREA MANAGER MANAGER SALES SALES PROFESSIONAL PROFESSIONAL ASSTT. (URL removed)MIST SERVICE SERVICE REPRESENTATTIVE REPRESENTATIVE SKILLED LABOUR WORKERS STORES INCHARGE WORKERS AMOUNT Rs. in lakhs CHAPTER-II NON-RECURRING EXPENSES A) LAND Cost 2.50 registration fees -0.20 2.70 B) CIVIL CONSTRUCTION I) Main factory shed ground floor (URL removed). @ Rs.400.00 per (URL removed). 26.00 1st Floor 2724 (URL removed). 350.00 9.53 35.53 ii) Godown 595 (URL removed). @ Rs.300.00 per (URL removed). 1.79 iii) Boundary wall 750 (URL removed). @ Rs.200.00 per (URL removed). 1.50 iv) Culvert , Main gate and security room 1.50 v) Overhead R.C.C. water reservoirs including deep tube wells pumps 6.00 vi) Internal road, development work etc. 3.50 49.82 C) PLANT AND MACHINERY I) Tablet section 23.12 ii) Liquid and oral section 12.02 iii) Ointment section 2.22 iv) Capsules section 1.70 Total 39.06 Add: S.T. Insurance, Freight Charges, packigng and (URL removed)y @ 12% 4.69 43.75 D) OTHER FIXEED ASSETS I)Scientific Instruments 6.15 ii) Books and Peeriodicals 0.65 iii) Other accessories 0.97 iv) Quality Control Equipments 2.02 v) Blocks, Dies and Cylinder 2.28 12.07 E) INSTALLATION AND ELECTRICALS I) Electrical Equipments 2.34 ii) Generator(50 KVA) 7.15 A.C. & other utilities iii) Security deposit to SEB 5.00 iv) Cost of installation 3.00 17.49 F) FURNITURE & FIXTURES 3.29 G) PRELIMINARY AND PREOPERATIVES 12 H) CONTINGENCIES @ 3% ON NON-FIRM COST 3.79 Total 144.91 ALLOCATION OF CONTINGENCIES UNDER DIFFERENT FIXED ASSETS (URL removed)., Particulars Cost Contingencies @ 3% Total Cost 1) Factory and other construction 49.82 1.49 51.31 2) Platnt and machineries 43.75 1.31 45.06 3) Other fixed assets including Electrification 32.85 0.99 33.84 and installation & Fuurniture and fixture Total 126.42 3.79 130.21 DETAILS OF PRE & PREOPERATIVE EXPENSES 1) Papers, documentation, legal fees and contingency fees 3.00 lakhs 2) Initial expenses 0.60 lakhs 3) Interest on loan @ 17.5% 8.00 lakhs for the construction period 4) Other Misc. expenses like travelling, 0.40 lakhs printing, stationery, postage etc. 12.00 lakhs ALLOCATION OF CONTINGENCIES UNDER DIFFERENT FIXED ASSETS (URL removed). Particulars Cost Contingencies @ 3% Total Cost 1) Factory and other construction 49.82 1.49 51.31 2) Platnt and machineries 43.75 1.31 45.06 3) Other fixed assets including Electrification and 32.85 0.99 33.84 installation and furniture and fixture TOTAL…………… 126.42 3.79 130.21 DETAILS OF PRE & PREOPERATIVE EXPENSES: 1) Papers, documentation, legal fees and 3.00 lakhs contingency fees 2) Initial expenses 0.60 lakhs 3) Interest on laon @ 17.5% for the 8.00 lakhs constuction period 4) Other Misc. expenses like travelling, printing, 0.40 lakhs stationery, postage etc. 12.00 lakhs ANNEXURE-I LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification Power Unit Unit Price Amount Manufacturer/ Suppliers Mas Mixter Capacity-50kg 5HP 1 99000.00 99000.00 Cadmach Machinery Co. Drying oven Capacity-24 trays with MS. Trays 24 extra 1HP One & half 58500.00 58500.00 Asoka Enterprise Fluid Bed Dryer 1 158700.00 158700.00 do Multi Mill 3HP 1 85000.00 85000.00 Cadmach Machinery Co. Granulator/Oscillating GNP Model 2HP 1 49500.00 49500.00 do 2G, 16 (URL removed)ary Tablet pubching m/c. Out put 260 to 450/Min 2HP 1 92500.00 92500.00 do Die-punch sets(3 sets) D.S.1/2" Concave 3 sets 60000.00 60000.00 do Tablets coating machine 36" dia 1 83125.00 83215.00 Gansons Ltd Tablets polishing pen 1 11875.00 11875.00 do a) Blister packing machine with one set of change parts PHARMAPACK 150 ch 2 432400.00 Pharmapack/Ashoka Ent. 8 71600.00 572800.00 do b) Right complete set of change parts(additional) ( The above blister pack machine will be used in tablet and capsule products of all range) c) Water cooler-120 litrs/(URL removed) 18 degree C-20 degree C-3 Bar clit deduster Clit deduster 1 44000.00 44000.00 do 1 31000.00 31000.00 do 1 31000.00 31000.00 do Dust extractor unit-150 degree C with nozzle 1 19000.00 19000.00 Cadmach Machinery Co. Dist for tablets and capsule 1 48400.00 48000.00 do Tablet disintrigation measurement apparatus 1 17250.00 17250.00 Addair Dutta & Sons Pireability Test apparatus 1 17250.00 17250.00 do 2312300 Rs.23.12 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Bottle washing machine 4 heads with 24 rinser 1/2 HP, 1 Unit 22,050.00 22,050.00 Ashoka Enterprise Stirrer(Industrial) Drying Oven 3 HP 2 Unit 23085.00 1/2 HP 15870.00 39675.00 do Capacity 24 rays 1 HP, 1 Unit with 24 extra. Trays 58500.00 59500.00 do Snerkler filter 12 bed(Horizontal) 1 H.P. Unit 1 59500.00 59500.00 do Storage Tank ( SS Vat) Capacity 2000 Lts(1 unit) 75900.00 75900.00 do do 1000 lts(2 units) 43000.00 86000.00 do 500 lts( 2 units) 30350.00 60700.00 do 300 lts(2 units) 22750.00 45500.00 do 200 lts(2 units) 17700.00 35400.00 do 100 Lts(2 units) 10750.00 21500.00 do Collied Mill 12" dia water Jacketted 3 HP(1 Unit) 62700.00 62700.00 Cadmach M/c. Co. Inline Liquid ROPP Cap sealing checking gumming machine fully automatic with conveyer Belt(complete set) United Engineering Works a) Semi automatic 2 head vacuum typeModel (V.L.F.4)1/2 HP/3 Phase/AC/440 bottle filling machine % HP(2 Unit) 33050.00 66100.00 do b) Two head volumetric bottle filing M/C.0.7 KW / Phase/440V/AC(2 Unit) 30400.00 60800.00 do c) Two SS. Cyringe for two head volumetric bottle filling machine 0.7 KW/3 phase/440 V/AC(1 unit) 46250.00 46250.00 do Total …………. 740575.00 ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers e) Hand operated Caping m/c 1 unit 16500.00 16500.00 United Engineering Works f) 28" Conveyor with motor reduction gear box and starter 1 unit 92575.00 92575.00 do g) Semi automatic HOPP caping machine with 0.5 HP motor and reduction gear box sturter(Model CM.I) 1 unit 47000.00 47000.00 do h) Semi Automatic inspection table 1 unit 37000.00 37000.00 do I) Semi automatic label gumming and pasting machine and motor 0.5 HP/AC 3 Phase/440V(Model L.C.P.1) 1 49600.00 49600.00 do j) Changeable parts for above machine 1 31050.00 31050.00 do k) Turn Table(unscramble) Model TT-30 1 35700.00 35700.00 do l) Deminerised water treatment plant (I) Capacity-1000 1 tr. Per hour 1 72450.00 72450.00 do 47600.00 47600.00 do ii) Capacity-500 ltr. Per hour 1 31750.00 31750.00 do Total 461225.00 B/f 740575.00 Total …………. 1201800.00 Rs.12.02 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Steam jacketed vat. Capacity-1000 lts 1 unit 45450.00 45450.00 United Engineering Works Autoclave 22" dia x 30" deep power 6 KW 1 unit 30800.00 30800.00 Addiar Dutta & Sons Triple Hollar Mill Size: 100x300 MW with motor 1 HP 440/Volt/3 Phase, 20 KW per hour 1 Unit 59500.00 59500.00 Asoka Enterprise Tube Filling, Sealing and batch printing machine Semi automatic 1 unit 60850.00 60850.00 United Engineering Works Extra for crimping and eoding device 2 Unit 12650.00 25300.00 do Total ……….. 221900.00 Say Rs.2.22 lakhs ANNEXURE-I ( Contd.) LIST OF PLANT AND MACHINERY TABLET SECTION Name of machinery Specification, Power, Unit Unit Price Amount Manufacturer/ Suppliers Cone mixer Capacity 25 kg., 1 HP 2 Unit 42320 84640 Asoka Enterprise Vacuum pump for capsule leak echecking 1/2 HP, 1 Unit 9200 9200 do Capsule fillint machine Capacity-300 holes(Manusal operated) M.F. 30.2 Unit 33195 66390 Pam Machinery Co. Physical Balance 1 Unit 10120 10120 Addair dutta and sons Total 170350 Say Rs.1.70 lakhs STATEMENT OF SCIENTIFIC INSTRUMENT WITH MICROBIOLOGICAL SET UP (URL removed). Name of instrument Specification Unit 1) U.V. Spectro Photometer PC based stable beam UV-VIS spectro photomotor model GS 5702 1 2) Digital PG Meter 1 3) Melting Point apparatus 1500 1 4) Drying Oven(15"x15"x18") 5) Heating mantle-2 litres 550 watts 6) Double cell eletric colourimeter 1 7) Incubator(24"x24"x30") S.S. 1 8) Digital balance(Electronic) 1 9) Table top centrifuge(Electrical) 8x15ml tubes 1 10) Magnetic Stirrer 1 11) Hot air blower 1 12) Ultra violet ceracidal lamp 1 13) Polarimeter for 200mm tubes 1 14) Infrareo moisture balance 1 15) Refrawmeter 1300 to 1700 range 16) Chemical balance 1 17) Vaccum pup-capacity 30 litres/min 1 18) Constant temperature water bath 18"x12"x10" 1 19) Thermostatic water bath 16"x12"x7" 1 20) Simple retary stirrer Speed 4000 R.P.M. 1 21) Hot Plate 18"x12" 1 22) Tulu pump 1 23) 1 KVS Serve voltape stabilizer 1 24) Tect dry 7 sterilising over 12"x12"x14" 25) Auto distillation applicances 8 lit/hour-8 KW ANNEXURE:2(CONTD….) (URL removed). Name of instrument Specification Unit 26) T.L.C. Hit with (URL removed)p 1 27) Flourimeter 1 28) Laminer flow 1 29) Kearl Fisher Titrator 1 30) Deeps apparatus 1 31) Travelling microscope 1 32) Naphellometry 1 33) Vaccum drier 1 34) Vaccum Desicator 1 35) Auto clave 1 36) Muffle farness 1 37) D.T. Measurement apparatus 1 38) (URL removed)surement apparatus 1 Total Cost 6.15 lakhs ANNEXURE:3 STATEMENT OF BOOKS AND PERIODICALS (URL removed). Name Unit 1)` Indian Pharmacopoea(Volume 2) 2 2) British Pharmacopooea(Volume 2) 2 3) US & NF Pharmacopoea 1 4) The Extra Pharmacopoea(Martindale) 2 5) Remington Pharmaceuticals 1 6) Goodman and Gilman(the Pharmaceutical basis of Therapeutics) 1 7) Marckined 1 8) Good Manufacturing practice 1 9) Others Government acts and rules 2 Total 0.65 lakhs ANNEXURE-4: Statement of Other Accessories (URL removed). Specification Qty Rate Amount 1) S.S. Pipe lining for supply of (URL removed)er to different section …. ….. 20,000 2) Wooden platform for raw materials and packing materials stores 2 nos 1000 2000 3) Wooden tabe for quality control department and manufactturing unit For analysis 2 nos 6000 12000 For Instruments 4 nos. 2000 8000 Packaging table 6 nos. 4000 24000 4) Wooden pack for raw materials stores and packing materials stores 8 nos. 2000 16000 5) Pollythene Vat. Capacity-100 litres 20 nos. 250 5000 6) Pollythene bucker, capacity 25 litres 10 nos. 215 2150 7) Pollytthene tray(for bottle) 50 nos. 150 7500 8) Pollythene Balti 10 nos. 30 300 9) Pollythene Mug-Capacity 1 litre 20 nos. 10 200 Total …….. 97150 Say Rs.0.97 lakhs ANNEXURE: 5 STATEMENT OF QUALITY CONTROL ARRANGEMENT:: ANALYTICAL SECTION AMOUNT A) Wooden furniture 30,400 B) Electrical equipments 14,500 C) Other than eloetrical equipments 21000 D) Other common laboratory 17730 E) Glass apparatus 59940 F) Analytical reagents 58000 Total 201570 Say Rs.2.02 lakhs ANNEXURE: 6 STATEMENT OF BLOCKS, DIES AND CYLINDER Sl. No. Description Qty Rate Amount 1) Zinc blocks for samples catch cover 14 1500 21000 2) Zinc blocks for samples catch cover 11 2000 22000 3) Zinc blocks for labels 11 800 8800 4) Zinc blocks for labels 14 1200 16800 5) Metal cylinder for stripping materials/poly paper or Aluminium foils 14 8000 1,12,000 6) Blocks for tubes of ointment in different sizes 5 2500 12500 7) Die-punch storage trays(18 gauge) 10 2500 25000 8) Bottle mould 2 sets 5000 10000 228100 Say Rs.2.28 lakhs ANNEXURE: 7 STATEMENT OF ELECTRICAL EQUIPMENTS: Description Specification Rate Quantity Amount Exhaust fan 16" dia, 20 nos. 1500 30,000.00 Fan/Ceiling 48" length 40 nos. 800 32000 Wall/Bracket fan 16" dia, 10 nos. 800 8000 Padestal fan Big size 4 nos. 4100 16400 Industrial tube sittings 1 set 50 nos. 550 27500 Capacitor 1 no. 20000 20000 Other electrical equipments with complete wiring) factory, office, godown etc. L.S. 100000 Total ……….. 233900 Say Rs.2.34 lakhs ANNEXURE:8 STATEMENT OF UTILITIES: Name of utilities Specification, Quantiy Unit Price Amount Airconditioner Capacity 1 ton 10 nos 25000 250000 Debmudifer 2 nos. 46000 92000 Refrigerator Capacity 165 ltr. 2nos. 9000 18000 Generator set Capacity 50 KVA 1 no. (Phone # removed)00 FIRE FIGHTING ARRANGEMENTS: FIRE EXTINGUISHER Chemical vapour type 10 nos. 800 8000 Fire fighting bucker 10 nos. 200 2000 Washing Balance(Avery) Capacity 50 kgs 1 no. 48000 48000 Washing Balance(Avery) Capacity-10 KG 1 no. 22000 22000 Troller((URL removed)ting) 2 nos. 6000 12000 Gear pump Capacity 1 no. 1/2 HP 5100 5100 Total 715100 Say: Rs.7.15 lakhs ANNEXURE-9: STATEMENT OF FURNITURE AND FIXTURE Name of articles and specification Quantity reqd. Rate/Unit Amount Table-Secretariate type(full) 20 3000 60000 Table-Secretariate type(Half) 40 2000 80000 Chair-Special type 20 nos. 800 16000 Chair-Special type 40 nos. 600 24000 Chair-Special steel(with arms) 150 nos. 300 45000 Chair-Steel Chair(without arms) 50 nos. 220 11000 Almirah-Steel Office type 20 nos. 2000 40000 File cabinet-Steel(Office use) 4 nos. 4000 16000 Wooden tools 10 nos. 200 2000 Type writer 4 nos. 8000 32000 Calculator 10 nos. 300 3000 Total………. 329000 Say: Rs. 3.29 lakhs CHAPTER-III RECURRING EXPENSES: I) COST OF RAW MATERIALS: Products name` Name of raw materials Unit rate Monthly requirements Cost Hilcer suspension in 170 ML bottle D.G.L.I.P. 400X523 kg 2.09 Dimethyle polysiloxane 400x27kg 0.11 I.P. dried aluminium hydroxide 50x880kg 0.44 Gel I.P Magnesium Hydrooxide B.P. 45x880kg 0.4 Hilcer plus susp. 120 ML bottle G.G.L>I % P 400x175kg 0.7 Andys suspension 50 ML bottle Metronidazole benzeati P 77x110kg 0.77 Furazolidone IP 750x44 kg 0.33 Diloxanide Furoate IP 650x110kg 0.72 Neufen plus suspension 50ml bottle Paracetamol IP 189x18kg 0.03 Nualka syrup 100ml bottle Disodium hydrogen citrate IP 100x440kg 0.44 Cramolytic syrup 200 bottle Rungal diastase(1:1200) 1000x44 kg 0.44 Pepsin(1:13000) 1080x44kg 0.48 Weak ginger BP 1000x4.5kg 0.05 Conc. Cinnamol water DP 1200x4.5kg 0.05 Ajowan Oil IP 2500x4.5kg 0.11 Comp. Cardamon 800x4.5kg 0.04 Papf plus syrup 180 ML Bottle Cyproheptadine hydrochloride U.S.P. 26000x9 kg 2.34 Tricholine citrate 100 x17.76 kg 1.78 Llysin monohydrocloride IP 265x440kg 1.17 Thaimine hydrocloride IP 3000x6.5kg 0.2 Riboflavine IP 4500x6.5kg 0.29 Pyridoxine Hydrocloride 4000x4.5kg 0.18 13.16 Products name Name of raw materials Unit rate Monthly reqd. Cost Papf plus drop Cyprophepatadine Hydro Chloride IP 26600x2.2kg 0.59 Llysis Monohydrochloride USP 265x44 kg 0.12 Tricholine citrate 100x176kg 0.18 Thiamine Hydrochloride I.P. 3000x4.5kg Ribiflavine IP 4500x4.5kg 0.01 Pyrodoxine Hydrochloride IP 4000x4.5kg Green lit syrup Tricholine cittrate 100x1760kg 1.76 Kalamegh liquid extract B.P.C.886 600x22kg 0.13 Thiamine Hydrochloride IP 3000x6.5kg 0.2 Riboflavine IP 4500x6.5kg 0.29 Pyrodoxine Hydrochloride IP 4500x4.5kg 0.2 Green Liv drops Kalamegh liquid extract IP 66 6600x4.5kg 0.3 Tricholine citrate 100x176kg 0.18 Thaimine Hydrochloride IP 3300x440gm Riboflavine IP 4500x440 gm Pyridoxine HCL IP 4000x440gm 0.05 4.01 B/f 13.16 17.17 c/o Product name Name of raw materials Unit rate Month reqd. Cost Protchem syrup None tronic feric ammonium citrate 200x88kg 0.18 Casein Hydrolsate 20% 210x440kg 0.92 L-Lysis monohydrochloride USP 265x35 kg 0.09 Pyridoxine Hydrochloride IP 4000x1.1kg 0.04 Folic Acid 5000x450kg 0.02 Zinc sulphate 100x9kg 0.02 Calcium Gluconate 200x9kg 0.02 Vitamin D3 2000x220 IU 0.01 Vitamin B12 3000x220gm 0.01 Liv Long syrup 200 ML bottle Trichline citrate 100x308kg 0.31 Sodium Taurodycocholate BPC 300x200kg 0.07 (URL removed)hionine 300x5 kg 0.02 Vitamin BI IP 3000x1.1kg 0.03 Vitamin B2 IP 4500x1.1kg 0.05 Vitamin B12 IP 3000x50kg Kalamegh IP '66 600x4.5kg 0.03 93883535 kgs 19.02 MONTHLY REQUIREMENT ANNUAL REQUIREMENT 112.66 MT 228.24 ADD: PROCESS LOSS @ 5% 5.63 mt 11.41 118.29 MT 239.65 Add: Packing, forwarding and transportation charges etc. @ 3% 7.19 TOTAL ANNUAL COST 246.84 B) FOR TABLETS Products name Name of the raw materials Unit rate Monthly reqd. Cost Neufen plus tablet Ibuprofen IP 600x225 kg 1.35 Paracetamol IP 180x225 kg 0.41 Ceffein Aunydrops IP 600x15kg 0.09 Diloxanide Furate tablet Diloxanide Furoate 650x150kg 0.98 Metronidazole 200 MG TABS Metronidazole IP 680x125kg 0.85 Almole tablet Paracetamol IP 180x250kg 0.45 Ibuprofen 200mg tablet Ibuprofen IP 600x100mg 0.6 Papf plus tablet Cyprohepadins FCL USP 2600x25kg 0.65 Chloline bitrate 600x5kg 0.03 L-Lysine monohydrochloride 265x62.5kg 0.17 Vitamine bl IP 3000x500gm 0.02 Vitamine B/6 IP 4000x500gm 0.02 Vitamine B/2 IP 4000x500gm 0.02 Bone Cal Tablet Calcium Carbonate IP 95x500gm 0.48 Vitamine D/3 3000x25gm Timed Tablet Tetracycline HCL IP 1600X175KG 2.8 Metronidazole IP 689x225kg 1.55 Green Liv tablet Cholin bittrate 600x25kg 0.15 Bile Salt BPC '54 200x25kg 0.05 D-L-Methiopnine 300x1.25kg Vitamin B/12 IP 3000x25kg Vitamin B/1 3000x500kg 0.02 Vitamine B/6 IP 4000x500kg 0.02 Vitamine B/2 IP 4000x500kg 0.02 Timed IV Tablet Metronidazole IP 68x125kg 0.09 Tetracycline HCL IP 1600x75kg 1.2 Dilomanide Furoate IP 600x125kg 0.75 MONTHLY REQUIREMENT 24370250KG 12.77 ANNUAL REQUIREMENT 29.24 mt 153.24 Add: Process Loss @ 5% 1.46 MT 7.66 TOTAL 30.7 160.9 Add: Packing, forwarding and transportation etc. @ 3% 4.83 TOTAL ANNUAL COST 165.73 C) FOR CAPSULES Products name Name of raw materials Unit rate Monthly reqd Cost Alnadex capsules 0 3500 1.2kg 0.04 Vitamin B/2 3000 1.2kg 0.04 Nicotinamide 400 12kg 0.05 Cal-Panthonat 400 6kg 0.02 Vitamin B/6 2500 0.36kg 0.01 Vitamin B/12 300 0.18gm Folic Acid 300 1.8kg 0.01 Vitamin C 800 18kg 0.14 Lactobacilins 460 48kg 0.22 Zince Sulphate 115 6kg 0.01 Starch 10% 10 4.8kg Tale 1% 30 4.8kg 0.01 Magnesium Stcarate 30 0.48kg 50 0.48kg Almox capsules(500) Amoxicillin 3500 30kg 1.05 Lactose 10% 30 3kg Starih 10% 10 3kg Magnesium Stcarate 1% 50 0.3 0.01 Tale 1% 30 0.3 Almox 250 Amoxicillin 3500 30kg 1.05 Lactose 10% 30 3kg Starih 10% 10 3kg 0.01 Magnesium Stcarate 1% 50 0.30kg Tale 1% 30 0.3 Lactotetra 500 Tefracy Cline hcl 1625 60kg 0.98 Lactobacilli 460 4.8kg 0.02 Lactose 10% 30 6kg Starch 10% 10 6kg Talc 1% 30 0.60kg Magnasium Stearate 50 0.60kg 0.01 3.68 Products name Name of raw materials Unit rate Monthly reqd. Cost Prutohen cap Ferrous Finatate 250 2.4kg 0.07 Vitamin B/2 3000 0.30kg 0.01 Vitamin B/12 300 0.90kg Vitamin B/6 3000 0.18kg 0.08 Vitamin C 800 9kg Folic acid 300 9kg 0.03 Lilysim mono HCL 525 6kg 0.03 Dioclyi Sodium sulpho Snceinate 260 3kg Starch 10% 10 5.2kg 0.01 Lactose 10% 30 5.2 Magnesium Sterate 1% 50 0.52 Tale 1% 30 0.52 0.23 B/f 3.68 MONTHLY REQUIREMENT 2934630kg 3.61 ANNUAL REQUIREMENT 35.22 MT 45.72 ADD: PROCESS LOSS @ 5% 1.76 2.29 TOTAL 36.98MT 48.01 Add: PACKING, FORWARDING, TRANSPORT ETC .@ 3% 1.44 TOTAL ANNUAL COST 49.45 D) FOR OINTMENT Product name Name of the raw materials Unit rate Monthly reqd. Cost Stanan Cream Cotrimazole 2600 0.30kg 0.01 Betname Thatone 4500 15kg 0.07 Genetamycin 4500 30kg 0.14 Propyline Glycol 450 10 0.04 Cream 400 10 0.04 Other inactive ingredient xx XX 0.01 Burnex Ointment Kitrofurazone 750 240GM 0.18 Silver Sulphadine Giluconate 10 240gm 0.02 Propyline Gllyeol 400 20kg 0.08 Cream Lanocim 200 20kg 0.04 Bactosprim Ointment Polymixine B Sulphate 450 15kg 0.07 Zine baeitracin 200 0.12kg 0.05 Prophline Glycol 450 10kg Newmycin Sulphate 300 10.2kg 0.03 Cream base 200 10kg 0.02 Ascoi Ointment Gama benzine mexachiorid 800 3kg 0.02 Cetrimide 600 7.5kg 0.02 Providine Iodine 200 7.5kg 0.02 Meclop Veginale Ointment Matronidavole 660 0.12kg 0.02 Clotrimazole 2600 0.6kg Povidine Iodine 200 15kg 0.03 Propyline Glycol 450 10kg 0.05 Cream base and other inactive ingredient 200 10kg 0.02 Monthly requirements 75.934kg 1.17 ANNAUL REQUIREMENT 9.11KG 14.04 ADD: PROCESS LOSS @5% 0.46KG 0.7 TOTAL 9.57KG 14.74 ADD: PARKING, FORWARDING TRANSPORT @ 3% 0.44 TOTAL ANNUAL COST 15.18 TOTAL COST OF THE RAW MATERIALS (P.A.) (AT 100% CAPACITY UTILISATION) (Rs. in lakhs) TOTAL OF GROUP A 246.84 TOTAL OF GROUP B 165.73 TOTAL OF GROUP C 49.45 TOTAL OF GROUP D 15.18 TOTAL 477.2 1ST YEAR @ 40% CAP 190.88 2ND YEAR @ 50% CAP 238.6 3RD YEAR @ 60% CAP 286.32 4TH YEAR @ 70% CAP 334.04 ii) ANNAUL REQUIREMENT AND COST OF PACKING MATERIALS (AT 100% CAPACITY UTILISATION) Name of the packing materials Monthly reqd Average rate Monthly cost A) FOR ORAL LIQUID BOTTLE 530 2.25 11.93 P.P. CAPS 530 0.25 1.33 CARTOON 352 1 3.52 LABEL 575 0.2 1.15 CORRUGATED BOX 18 17 3.06 OTHER PACKING MATERIALS XX XX 0.1 TOTAL 21.09 B) FOR TABLET STRIPS ALUMINIUM FOIL 300kg 150/kg 0.45 POLLY PAPERS 400kg 80/kg 0.32 02) PRINTED PLASTIC CONTAINER a) Container of 30 tabls 25500 nos. 3 0.77 b) Container of 500 tabls 1530 nos. 8 0.12 03) Cartoons 15200 nos. 1 0.15 TOTAL 1.81 Monthly reqd Average rate Monthly cost G) FOR CAPSULE EMPTY GELATIN CAPS 216000 PCS 80.00 1000 pcs 0.17 ALUMINIUM FOILS 135kg 150kg 0.2 BOX OF 100'S CAPS 600 pcs 3.00 pcs 0.02 BOX OF 20'S CAPS 1500 box 1.00 pcs 6000 box 0.50 pc BOX OF 30'S CAPS 2000 box .50 pc 0.05 GUM ADHESIVE ETC. L.S. 0.01 TOTAL….. 0.46 D) FOR OINTMENT TUBES OF 5 GM 10500 .40/PC 0.042 TUBES OF 25 GM 3000 .60/PC 0.018 TUBES OF 10GM 9000 .60/PC 0.054 CARTOON OF 5GM TUBES 10500 .40/PC 0.042 CARTTON OF 10GM TUBES 9000 .60/PC 0.054 CARTOON OF 25GM TUBES 3000 .60/PC 0.018 OUTER CARTOON OF 50'S 360 1.00/PC 0.004 TOTAL 0.232 TOTAL MONTHLY COST OF PACKING MATERIALS 23.59 Total annual cost of packigng materials at 100% Capacity 283.08 SO, at 40% cap(1st yyear) 113.23 50% cap(2nd year) 141.54 60% cap(3rd year) 169.85 70% cap(4th onwards) 198.16 III) STATEMENT OF SALARY AND WAGES IN TOTAL (URL removed). Particulars Nos. of Heads Amount 1) Office Staff 16 327600 2) Sales and Marketing Staff 49 919800 3) Administrative Staff 3 163800 4) Distribution Staff 6 84420 5) Factory staff 40 665280 6) Labortory(Workshop) Staff 9 352(Phone # removed)700 Say Rs.25.14 lakhs N.B. There will be an opening for 123 heads in the 1st year and cost for Salary and wages will be Rs.25.14 lakh. A provision for 5% increase has been considered from 3rd year and+A649 onwards. Statement of Salary of Office Staffs NOS PAY SCALE AMOUNT ACCOUNTS OFFICER 1 4000 4000 ACCOUNTANT 1 2000 2000 ACCOUNTS CLERK 4 1500 6000 OFFICE ASSISTANT 4 1500 6000 STENOGRAPHER 1 1800 1800 RECEPTIONIST 1 1500 1500 TYPIST/CLERK 2 1500 3000 OFFICE PEON 2 850 1700 TOTAL 16 26000 YYEARLY(Rs.26,000x12) 312000 Fringe benefit-5% 15600 Total 327600 STATEMENT OF SALARY OF MARKETING AND SALES STAFFS NOS PAY SCALE AMOUNT MARKETING MANAGER 1 6000 6000 REGIONAL SALES MANAGER 2 4500 9000 AREA MANAGER 6 3000 18000 PROFESSIONAL SERVI CE REPRESENTATIVE 40 1000 40000 TOTAL 49 73000 YEARLY(Rs.73000x12) 8,76,000.00 Add: EARING BENEFIT 43,800.00 TOTAL 9,19,800.00 STATEMENT OF SALARY OF ADMINISTRATIVE STAFFS NOS PAY SCALE AMOUNT ADMINISTRATIVE OFFICE 1 6000 6000 SECRETARY 1 4000 4000 PURCHASE OFFICER 1 3000 3000 TOTAL……. 3 13000 YEARLY(Rs.13000x12) 1,56,000.00 Fringe Benefits-5% 7,800.00 TOTAL 1,63,800.00 STATEMENT OF SALARY OF DISTRIBUTION STAFFS 1) STORE IN CHARGE 1 2000 2000 2) DELIVERY VAN DRIVER 1 1500 1500 3) DELIVERY VAN HELPER 1 1000 1000 4) DELIVERY MAN 1 800 800 5) HELPER 2 700 1400 TOTAL 6 6700 YEARLY(RS.6700X12) 80,400.00 FRINGE BENEFIT-5% 4,020.00 TOTAL 84,420.00 STATEMENT OF WAGES OF FACTORY STAFF NOS PAY SCALE AMOUNT 1) MACHINE OPERATOR 6 2000.00 12000.00 2) SKILLED WORKMEN 8 1400.00 11200.00 3) SEMI SKILLED WORKMEN 8 1500.00 12000.00 4) UNSKILLED WORKMEN 10 900.00 9000.00 5) SWEEPER 2 800.00 1600.00 6) ELECTRICIAN 2 1200.00 2400.00 7) HELPER 2 800.00 1600.00 8) SECURITY 2 1500.00 3000.00 TOTAL 40 52800.00 YYEARLY(RS.52,800.00X12) 6,33,600.00 FRINGE BENEFIT-5% 31,680.00 TOTAL 6,665,280.00 STATEMENT OF SALARY OF LABORATORY(FACTORY) STAFFS NOS PAY SCALE AMOUNT 1) PRODUCTION MANAGER/CHIEF CHEMIST 1 6000.00 6000 2) QUALITY CONTROL CHEMIST 1 5000.00 5000 3)MANUFACUTURING CHEMIST 1 5000.00 5000 4) ASST. CHEMIST 2 3000.00 6000 5) LABORATORY ASST 4 1500.00 6000 TOTAL 9 28000 YEARLY(RS.28,000X12) 3,36,000.00 FRINGE BENEFIT-5% 16,800.00 TOTAL 3,52,800.00 IV) REQUIREMENT AND COST OF POWER (URL removed). NAME OF THE EQUIPMENT H.P. 1) AUTOMATIC ROTARY TABLETING MACHINE 3 2) COLLOID MILL 2 3) FILTRATION UNIT 0.5 4) TABLET COATING AND POLISHING PAN 1 5) TABLET DRYER 1 6) AUTOMATIC STRIPING MACHINE 1 7) VACUMETRIC BOTTLE FILLING 0.05 8) CAP SEALING MACHINE 0.5 9) AUTOMATIC LABEL CUMING AND PASTING MACHINE 0.05 10) (URL removed)T CHAIN CONVEYOR BELT 0.5 11) HORIZONTALTYPE MASS MIXTURE 5 12) STIRRER 2 13) CAVINET DYRE FOR BOTTLE DRYING 1 14) WATER PUMP, GENERATING AND LIGHTING ETC 5.5 15) SEMI AUTOMATIC BOTTLE WASHING AND BRUSHING MACHINE 0.5 16) OTHER MISC. MACHINERIES 1 25 HP APPROX 18 KW COST OF THE POWER 2.00(AT 100% capacity utilisatilon) 18.00x8x300x1.50 = Rs.86,400.00 Say Rs.0.86 lakhs (ANY EXCESS POWER REQUIRE FOR THE PROJECT WILL BE TAKEN CARE BY THE COMPANY AS THE NEED OF THE PROPOSED PROJECT) 1ST YEAR @ 40% Cap. Afilisation 0.35 lakhs 2nd Year @ 50% Cap. Afilisation 0.43 lakhs 3rd year @ 60% Cap. Afilisation 0.52 lakhs 4th and onwardes @ 70% Cap. Afilisation 0.60 lakhs V) ADMINISTRATIVE EXPENSES ITEMS (RS. IN LAKHS) 1) INSURANCE OF FIXED ASSETS 0.25 2) POSTAGES AND TELEPHONE 0.25 3) AUDIT FEES AND LEGAL EXPENSES 0.1 4) CONVEYANCE 0.25 5) STATIONERY 0.15 6) MISC, EXPENSES 0.12 TOTAL 1.12 Lakh(on 1st year) VI) SALES AND MARKETING EXPENSES 1) TRAVELLING EXPENSES FOR SALE PERSONNEL@ 3% ON SALES. 2) MARKETING AND SELLING EXPENSES @ 2% ON SALES 3) SALES PROMOTIONAL EXPENSES @ 5% ON SALES 4) DISTRIBUTION EXPENSES @ 3% ON SALES TOTAL 13% ON NET SALES VALUE PER YEAR TOTAL RECURRING EXPENSES(PER MONTH) (Rs. in lakhs) Particulars 1st year 2nd year 3rd year 4th year CAPACITY UTILISATION 40% 50% 60% 70% RAW MATERIALS 15.91 19.88 23.86 27.84 PACKING MATERIALS 9.44 11.80 14.15 16.51 SALARY AND WAGES 2.10 2.10 2.20 2.31 POWER 0.30 0.40 0.05 0.05 REPAIR AND MAINTENANCE 0.15 0.16 0.18 0.20 CONSUMABLES 0.15 0.16 0.18 0.20 TOTAL 27.78 34.14 40.62 47.11 CHAPTER-IV COST OF PROJECT AND MEANS OF FINANCE (RS. IN LAKHS) A) TOTAL CAPITAL OUTLAY 1) LAND AND BUILDING 52.52 2) PLANT AND MACHINERY 53.75 3) OTHER FIXED ASSETS 12.07 4) INSTALLATION AND ELECTRIFICATION 17.49 5) FURNITURE AND FIXTURES 3.29 6) PRELIMINARY AND PREOPERATIVES 12 7) CONTINGENCIES 3.79 8) MARGIN MONEY FOR WORKING CAPITAL 17.88 162.79 9) BANK BORROWING FOR WORKING CAPITAL 53.6 10) CAPITAL OUTLAY 216.39 B) MEANS OF FINANCE 1) SHARE CAPITAL 25 2) TERM LOAN (4.67% OF PROJECT COST) 1009 3) UNSECURED LOAN 28.79 4) BANK FINANCE @ 75% OF WORKING CAPITAL 53.6 TOTAL 216.39 CHAPTER-V FINANCIAL IMPLICATIONS: This capter gives the financial projection regarding sales realisation, profitability statement, computation of working capital and computation of interest, taxation, cash flow, statement, and balance sheet, nreak even point, debt service coverage ration and pay back period have also been worked out in details to show in the financial viability of the project. PROJECT COST AND MEANS OF FINANCE The project is estimated to cost Rs.1662.79 lakhs including margin money for working capital of Rs.17.88 lakhs. The amount is proposed to be financed as under: 1) SHARE CAPITAL 25.00 LAKHS 2) TERM LOAN 109.00 LAKHS 3) UNSECURED LOAN 28.79 LAKHS 162.79 LAKHS SHARE CAPITAL: The promoters capital of Rs.25.00 lakhs will be contributed by the entrepreneurs themselves by issuing shares. TERM LOAN The term loan of Rs.109.00 lakhs is proposed to be obtained from Industrial Development Bank of India. The loan is proposed to be repaid in 6 years by 11 half yearly instalment which will be commenced from the after 1 year Moratorium I.e. at the end of 1st operating year. The loan will bear an interest @ 17.5% annum. COMPUTATION OF WORKING CAPITAL: Details computation of working capital requirement made in appendix 5.1 bank finance has been considered to bew 75% of the total Investment towards working capital while considering the same Provision for one month stock of raw materials one week work-in-process, 3 weeks stock of finished goods and 30 days receivable(at cost) has been kept). BALANCE SHEET: Project Balance Sheet for 7 years has been computedn in appendix 5.8 BREAK-EVEN POINT: Break-even point calculation for 3 year at maximum capacity utilisation has been computed in Appendix 5.9 DEBT SERVICE COVER AGE RATIO: D.S.C.R. has been calculated in appendix 5.6 INTEREST: Interest on term loan working capital has been shown in Appendix 5.4 COMPUTATION OF WORKING CAPITAL Particulars Basis Bank Finance 1st year at 40% cap. Utilisation 2nd year at 50% cap. Utilisation 3rd year at 60% cap. Utilisation 4th year at 70% cap. Utilisation Total amount Bank finance Margin money Total amount Bank finance Margin money Total amount Bank finance Margin money Total amount Bank finance Margin money Raw and packing 1 month 75% 15.91 11.93 3.98 19.88 14.91 4.97 23.86 17.89 5.97 27.84 20.88 6.96 materials work-in-process 1 week 75% 6.95 5.21 1.74 8.54 6.4 2.14 10.16 7.62 2.54 11.78 8.83 2.95 finished goods 3 weeks 75% 20.84 15.63 5.21 25.61 19.21 6.4 30.47 22.85 7.62 35.33 26.5 8.83 Receivables(at cost) 1 month 75% 27.78 20.83 6.95 34.14 25.6 8.54 40.62 30.16 10.16 47.11 35.33 11.78 71.48 53.6 17.88 88.17 66.12 22.05 105.11 78.82 26.29 122.06 91.54 30.52 DEPRECIATION CALCULATION IN W.D.V. METHOD YEAR BUILD COST @ 5% p.a. Plant & M/C @ 10% p.a. Other Assets @ 15% p.a. Total FIRST YEAR Purchase during the year 51.31 45.06 33.84 130.21 Depreciation 2.57 4.51 5.08 12.16 Second Year: Opening Balance 48.74 40.55 38.76 128.05 Depreciation 2.44 4.06 4.31 10.81 THIRD YEAR Opening Balance 46.3 36.49 24.45 107.24 Depreciation 2.32 3.65 3.67 9.64 FOURTH YEAR Opening Balance 43.98 32.84 20.78 97.6 Depreciation 2.2 3.28 3.12 8.6 FIFTH YEAR: Opening Balance 41.48 29.56 17.66 88.7 Depreciation 2.09 2.96 2.65 7.7 SIXTH YEAR: Opening Balance 39.69 26.6 15.01 81.3 Depreciation 1.98 2.66 2.25 6.89 APPENDIX:5.3 ESTIMATED SALES: The sale figures of the proposed production at 100% capacity utilisation per annum has been calculated as follows:- BY SALE OF AMOUNTS(RS. IN LAKHS) LIQUIDS 734.04 TABLETS 290.28 CAPSULES 116.16 OINTMENTS 61.32 1201.8 ADD: EXCISE DUTY @ 15% 180.27 TOTAL 1382.07 Hence, the sale value of the finished products in different years as per capacity utilisation are as follows:- YEAR CAPACITY UTILISATION TOTAL AMOUNT P.A. 1ST YEAR 40% 552.83 2ND YEAR 50% 691.04 3RD YEAR 60% 829.24 4TH AND ONWARDS 70% 967.45 ESTIMATES OF PRODUCTION AND SALES (At 100% capacity utilisation) (URL removed). PRODUCT MONTHLY PRODUCTION UNIT SELLING RATE(TRADE PRICE) (RS) MONTHLY AMOUNT TOTAL ANNUAL AMOUNT A) ORAL LIQUIDS 1) Hilcher Suspension 52800 bottles 13.75 per bottle 7.26 2) Hilcer plus Suspension 26400 11 2.9 3) Andhya Suspension 22000 14.3 3.15 4) Neufen plus Suspension 22000 14.3 3.15 5) Naulk Syrup 22000 9 1.98 6) Carmolytie Syrup 44000 23.9 10.52 7) Pap plus syrup 88000 27.5 24.2 8) Pap plus drop 22000 12.9 2.84 9) Green liv syrup 88000 25.3 22.26 10) Green liv drops 22000 12 2.64 11) Protohem Syrup 44000 25.8 11.35 12) Live long syrup 22000 22.5 5.61 TOTAL 475200 Less: Physicians sample 9500 bottles 19.57 a) @ 20% b) Breakage wastage, leakage, expiry @ 5% 23760 4.89 356400 bottles 73.4 NET SALES REALISATION (AFTER 20% TRADE DISCOUNT) B) TABLETS 61.17 734.04 1) Neufen plus tablet 5 lacs nos. 105/100 tab 5.25 2) Metronidazole Tablets 2.5 lacs 80/500 tab 0.4 3) Diloxanide furo 2.5 lacs 50/100 tab 1.25 4) Almole tablets 2.5 lacs 95/500 tab 0.48 5) Ibuprofen 200mg tablets 2.5 lacs 80/500 tab 0.4 6) Papf. Plus tablet 2.5 lacs 5/30 tab 1.25 7) Green Liv tablet 2.5 lacs 30/30 tab 2.5 8) Bone cal tablet 2.5 lacs 32/30 tab 2.67 9) Timed tablet 5.0 lacs 305/100 tab 15.25 10) Timed IV 2.5 lacs 330/100 tab 8.25 TOTAL 30.0 LAKHS NOS. 37.7 452.4 LESS: Physicians sample a) @ 20% 6.00 lakhs nos. 7.54 b) Breakage, wastage, expiry etc.@ 3% 0.9 lakhs nos. 1.13 23.10- lakhs nos. 29.03 MONTHLY AMOUNT TOTAL ANNUAL AMOUNT NET SALES REALISATION (After 20% Trade Discount) 24.19 290.28 C) CAPSULES 1) Allendex 12000 unit(1 unit = 10 caps) 19.2 2.3 2) Almox 500 6000 units 39 2.34 3) Almox 250 12000 units 26 3.12 4) Lactotetra 12000 unit 21 2.52 5) Protohem 12000 unit 15 1.8 TOTAL: 54000 UNIT 12.08 Less: a) Physician sample @ 15% - 8100 unit 1.8 10.28 b) Breakage, wastage, leakage, expiry @ 5% =2700 0.6 9.68 LAKHS TOTAL So, yearly sale at 100% capacity = 116.166 lakhs D) OINTMENTS: 1) Brunax 12000 unit 18.00 2.16 2) Bactosprim 6000 units 14.00 0.84 3) Asebi 6000 units 22.50 1.35 4) Maelop(veginale) 6000 units 17.00 1.02 5) Stanan cream 6000 units 17.00 1.02 TOTAL 36000 UNITS 6.39 Less: a) Physican sample @ 15% = 5400 unit 0.96 5.43 b) Breakage, wastage, leakages expiry @ 5% = 18700 units 0.32 TOTAL 5.11 lakhs So, yearly sale at 100% capacity = 61.332 lakhs COMPUTATION OF INTEREST AND REPAYMENT SCHEDULE A)TERM LOAN YEAR HALF OPENING BALANCE REPAYMENT CLOSING BALANCE INTEREST @ 17.5% PER ANNUM 1st 1st 109 ….. 109 9.54 2nd 109 9 100 9.54 19.08 2nd 1st 100 10 90 8.75 2nd 90 10 80 7.88 16.63 3rd 1st 80 10 70 7 2nd 70 10 60 6.13 13.13 4th 1st 60 10 50 5.25 2nd 50 10 40 4.38 9.63 5th 1st 40 10 30 3.5 2nd 30 10 20 2.63 6.13 6th 1st 20 10 10 1.75 2nd 10 10 nil 0.88 2.63 B) WORKING CAPITAL LOAN: Rs.53.60 lakhs interest @ 18% p.a. = Rs.9.65 lakhs per year C) TOTAL INTEREST YEAR INTEREST ON TERM LAON INTEREST ON WORKING CAPITAL LAON TOTAL AMOUNT 1ST 19.08 9.65 28.73 2ND 16.63 9.65 26.28 3RD 13.13 9.65 22.78 4TH 9.63 9.65 19.28 5TH 6.13 9.65 15.78 6TH 2.63 9.65 12.28 PROJECTED PROFITABILITY STATEMENT PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Capacity utilisation 40% 50% 60% 70% 70% 70% A) Gross Sales 552.83 691.04 829.24 967.45 967.45 967.45 Less: Ex-duty 71.87 89.84 107.8 125.77 125.77 125.77 Net Sales 480.96 601.2 721.44 841.68 841.68 841.68 B) Cost of Sales I) Raw materials 190.88 238.6 286.32 334.04 334.04 334.04 ii) Packing materials 113.23 141.54 169.85 198.16 198.16 198.16 iii) Consumable stores 1.8 1.98 2.18 2.4 2.4 2.4 iv) Power and fuel 0.36 0.42 0.5 0.59 0.59 0.59 v) Repair and maintenance 1.8 1.98 2.18 2.4 2.4 2.4 vi) Salary and Wages 25.14 25.14 26.4 27.72 29.11 30.56 vii) Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 TOOTAL(B) 345.47 420.47 497.07 573.91 574.4 575.01 C) Gross Profit(A-B) 135.59 180.73 224.37 267.77 267.28 266.64 D) Sales & Marketing Exp 62.52 78.16 93.79 109.42 109.42 109.42 E) Administrative Exp. 1.12 1.23 1.35 1.49 1.49 1.49 F) Deferred exp written off 3 3 3 3 - - G) Profit before interest 68.95 98.34 126.23 153.86 156.37 155.73 H) Interest payable 28.73 26.28 22.78 19.28 15.78 12.28 PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Operating Profit 40.22 72.06 103.45 134.58 140.59 143.45 Tax provision 16.00 29.00 41.00 54.00 56 57 40% approx Director's Remuneration 0.96 0.96 1.2 1.44 1.8 2.4 Net Profit 23.26 42.1 61.25 79.14 82.79 84.05 Add: Back Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 Cash Accruals 35.42 52.91 70.89 87.74 90.49 90.94 Repayment 9.00 20.00 20.00 20.00 20.00 20.00 DEBT SERVICE COVERAGE RATIO(D.S.C.R.) PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR A) Debt Servicing fund Cash accruals 428.49 35.42 52.91 87.74 90.59 90.94 Interest on Term Loan 67.23 19.08 16.63 9.63 6.13 2.63 TOTAL 495.72 54.5 69.54 97.37 96.72 93.57 B) DEBTS Repayment on term loan 109 9 20 20 20 20 Payment of interest on 67.23 19.08 16.63 9.63 6.13 2.63 Term laon TOTAL 176.23 28.08 36.63 29.63 26.13 22.63 C) D.S.C.R.(A/B) 2.81:1 1.94:1 1.9:1 3.29:1 3.7:1 4.13:1 PROJECTED CASH FLOW STATEMENT: A) Inflow Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 1) Share Capital 25 - - - - - - 2) Unsecured loan 28.79 - - - - - - 3) Term laon 109 - - - - - - 4) Increase in Working 53.6 Capital Loan 5) Depreciation 12.16 10.81 9.64 8.6 7.7 6.89 6) Deferred exp. 3.00 3.00 3.00 3.00 - - written off 7) Profit after depreciation 68.95 98.34 126.23 153.86 156.37 155.73 but before interest TOTAL 162.79 137.71 112.15 138.87 165.46 164.07 162.62 PROJECTED CASH FLOW STATEMENT B) OUTFLOW Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 1) Fixed assets including 132.91 contingencies 2) Deferred exp. 12 3) Increase in Current Assets 71.48 16.69 16.95 16.95 4) Repayment of Term Loan 9 20 20 20 20 20 5) Interest 28.73 26.28 22.78 19.28 15.78 12.28 6) Taxation 16 29 41 54 56 57 7) Directors remuneration 0.96 0.96 1.2 1.44 1.8 2.4 TOTAL(B) 144.91 126.17 92.93 101.92 111.67 93.58 91.68 Net surplus/ 17.88 11.54 19.22 36.95 53.79 70.49 70.94 Deficit Opening Balance 17.88 29.42 48.64 85.59 139.38 209.87 Closing Balance 17.88 29.42 48.64 85.69 139.38 209.87 280.81 PROJECTED BALANCE SHEET LIABILITIES Const. Period 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR Share Capital 25 25 28.79 28.79 28.79 28.79 28.79 Unsecured Loan 28.79 28.79 Term loan 109 100 80 60 40 20 - Bank borrowing - 53.6 53.6 53.6 53.6 53.6 53.6 Reserve and Surplus (net profit) - 23.26 65.36 126.61 205.75 288.54 372.59 TOTAL 162.79 230.65 252.75 294 353.14 415.93 479.98 ASSETS: 1) Fixed Assets(Net 132.91 120.75 109.94 100.3 91.7 84 77.11 depreciation 2) Deferred exp. 12 9 6 3 3) Cash/Bank Balance 17.88 29.42 48.64 85.59 139.38 209.38 280.81 4) Current Assets - 71.48 88.17 105.11 122.06 122.06 122.06 5) Other than cash Balance TOTAL 162.79 230.65 252.75 294 353.14 415.93 479.98 BREAK EVEN ANALYSIS (On 3rd year basis at 60% capacity utilisation) A) SALES 721.44 B) VARIABLE COST: 1) Raw and packing materials 456.17 2) Consumables 2.18 3) Power and Fuel 70% 0.35 4) Selling and distribution exp. 93.79 5) Admn. Exp 1.35 6) Interest on Working capital loan from bank 9.65 563.49 C) CONTRIBUTION(A-B) 157.95 D) FIXED COSTS: 1) Salary and Wages 26.4 2) Power and Fuel 30% 0.15 3) Depreciation 9.64 4) Interest on Term Loan 13.13 5) Repair and maintenance 2.18 51.5 E) B.E.P. FIXED COSTS X 100 51.50 X 100% 32.61 CONTRIBUTION 157.95 vvvvvv