PROJECT PROFILE

PRODUCT TENNIS BALL

PRODUCT CODE 38510007

QUALITY AND STANDARD As per Customers choice

PRODUCTION CAPACITY 1,50,000 Nos, Balls per year

MONTH AND YEAR OF PREPARATION MARCH, 2011

PREPARED BY MSME-Development Institute

Ministry of MSME, Govt. of India
Electronics Complex, Chambaghat,
Solan (HP)

TELE FAX 01792-230766

Email :- [email protected]

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 PROJECT PROFILE ON TENNIS BALL

A. INTRODUCTION

Sport goods industry is one of the major export oriented industry in Punjab and Uttar
Pradesh, which is mainly concentrated at Jalandhar and Meerut. This industry is expanding
day –by-day in two cities and coming in other places also. Lawn tennis is game, which is
very popular and played not only in our country but all over the world. Lawn tennis is
mainly played in commonwealth countries. At present, in India there are very few units
manufacturing tennis balls at Jalandhar (Punjab) and Gurgaon (Haryana).

B. MARKET POTENTIAL

Tennis ball industry is on firm footing, looking into the internal and increases in
export demand. There is good scope for starting more manufacturing units in different parts
of the country. The demand for quality tennis ball is increasing hence there is scope for
other new units every year in the each and every state. The important raw materials required
for manufacturing of tennis balls are rubber and rubber chemicals, which is available in
India.

C. BASIS AND PRESUMPTION

1. Working Hours 8 hours per day single basis, 25 working

days in a month
2. To achieve capacity utilization 3 year
3. Labour & Wages Monthly salary basis
4. Interest rate for fixed & Working 14%
capital
5. Margin Money 25%
6. Pay Back of product 1 to 4 years

D. IMPLEMENTATION SCHEDULE: It will take one year to complete all the

formalities before starting the commercial production.

E. TECHNICAL ASPECTS
1. Process Outline
Generally tennis balls are manufacturing in three grade i.e. 60 gms, 80gms and
120 gms.The raw material used in the manufacturing are RMA, foiscal-Dop-oil,
Sperdal oil, Paraffin Wax, Zinc, Storic acid, Sulphur MBD, TMT and Rosin etc.
All the materials are mixed in rubber mixing mill properly. Then the mixed
rubber is pressed with hydraulic press in the shape of core die. Then two cores
are joined and then melton cloth is pasted.

2. QUALITY SPECFIIONS:

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 The quality of product depends upon strict supervision and use of correct
materials according to the buyers’ specifications. The adhesive should be
properly applied to obtain permanent bound. After the application of adhesive
both cores are to permanent bound.

3. PRODUCTION CAPACITY Per Annum

Quantity : 1,50,000 Nos Tennis Balls per year.

Value : Rs. 40,50,000/-

4. POWER REQUIREMENT : 47 HP

5. POLLUTION CONTROL: There is no pollution in for manufacturing of tennis balls.

F. FINANCIAL ASPECTS

a. FIXED CAPITAL

1) LAND &BUILDING:
Built-up area 150 Sq mtrs. on rental basis @ Rs. 10000/- pm

(II) MACHINERY AND EQUIPMENTS

S.No. Description HP Ind/Imp Qty Value (Rs.)

1. Rubber mixing mill 40 Ind. 1 4,00,000
12’x36’
2. Hydraulic press 2 Ind. 1 50,000
3. Hydraulic press with 2 Ind 1 50,000
pump x1’x1’
4. Scrap grinder 1 Ind. 1 20,000
5. Heating drum --- Ind. 1 4,000
6. Hand press for -- Ind. 1 5,000
cutting cloth
7. Core die --- Ind. 1 10,000
.8. Full core die --- Ind. 2 10,000
9. Finishing die - Ind. 8 30,000
10. Boiler 100 psi with - Ind 1 1,50,000
fittings
11. Cutter - Ind 1 2,000
12. Tubing machine 2 Ind 1 15,000
13. Stamping machine - Ind 1 2,000
14. Tools and equipments - - 5Sets 5,000
15. Installation and electrification on machinery @10% 69,800
16. Furniture LS 50.000

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 TOTAL 8,72,800
III. Pre-operative expenses 22,200

IV. Total Fixed Capital .

1.Machinery &Equipments 8,72,800
2.Pre-operative expenses 22.200
TOTAL 8,95,000
b.WORKING CAPITAL (PM)

1. PERSONNEL
S.No. Designation No. Salary (Rs.) Total (Rs.)
1. Manager 1 15,000 15,000
2. Technical supervisor 1 8,000 8,000
3. Clerk-cum Accountant 1 5,000 5,000
4. peon 1 3,000 3,000
5. Peon 1 3,000 3,000
6. Watchman 1 3,000 3000
7. Skilled workers 4 7,000 28,000
8 Un-skilled workers 2 3,000 6,000
TOTAL 71,000
Add perquistion@15% 10,650
TOTAL 81,650

II. RAW MATERIAL (PM)

S.No. Description Quantity Rate(Rs.) Total (Rs.)

1. R.M.A._5 750 kg 60/- 45,000
2. Foiscal-5 625Kg 12/- 7500
3. DPO oil 12.5Kg 90/- 1,125
4. Sperdal oil 25Kg 40/- 1,000
5. Paraffin wax 25Kg 50/- 1,250
6. Zinc 25Kg 80/- 2,000
7. Streatic acid 25Kg 70/- 1,750
8. Sulphur 75Kg 20/- 1,500
9. MBD 7.5Kg 200/- 1,500
10. TMT 1.250Kg 200/- 250
11. Resin 5Kg 60/- 300
12. Melton cloth 200Mtrs 150/- 30,000
13. Packing Boxes 1250 Box 10/- 12,500
TOTAL = 1,05,675
Say =
1,05,700

III. UTILITIES (PM):

S. No Description Amount (Rs.)

1. Power 25,000
2. Fuel/Diesel 5,000

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 TOTAL 30,000

IV. OTHER CONTINGENT EXPENSES (PM)

S.No. Description Amount (Rs.)

1. Rent 10,000
2. Postage, Stationery& Telephone 8,000
3. Transportation charges 7,000
4. Consumables stores 5,000
5. Repair and maintenance 5,000
6. Insurance 5,000
7. Other Misc. expenditure 5,000
TOTAL 45,000

V. TOTAL WORKING CAPITAL (PM)

S.No. Description Amount (Rs.)

1. Personnel 81,650
2. Raw Material 1,05,700
3. Utilities 30,000
4. Other contingent expenditure 45,000
TOTAL 2, 62,350
Say 2,62, 400
VI. WORKING CAPITAL (for 3 months)

2,62,400 x 3 = 7,87,200

c. TOTAL CAPITAL INVESTMENT

S. No. Description Amount (Rs.)
1. Fixed Capital 8,95,000
2. Working Capital ( 3 months) 7,87,200
TOTAL = 16,82, 200

G. MACHINERY UTILIZATION: 70% of major machinery

H. FINANCIAL ANALYSIS

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 1. Cost of production (per year)

S. No. Description Amount (Rs)

1. Working Capital 31,48,800

2. Depreciation on Machinery @ 10% 69,800
3. Depreciation on Tools and Equipments @25% 13,750
4. Depreciation on office Equipments and Fixture 10,000
@ 20%
5. Interest on Total Investment @ 14% 2,35,508
TOTAL= 34,77,858

Say = 34,77,900

2. TURNOVER (Per annum)

Description Qty Rate Value (Rs)

Tennis ball 1,50,000 27/- 40,50,000

3. PROFIT

Turnover — Cost of production = Profit

40,50,000 — 34,77,900 = 5,72,100

4.Net profit Ratio:

Net profit x 100 = 5,72,100 x100 = 14.12%

Turnover 40,50,000

5.Rate of Return:

Profit x 100 = 5,72,100 x 100 = 34%

Total Capital Investment 16,82,200

6.Break—Even Point

a)Fixed Cost:

S. No Description
Amount (Rs)

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 a) Rent 1,20,000
b) Depreciation on Machinery 69,800
c) Depreciation on Equipments, Dies and 23,750
Furniture
d) Interest on total capital Investment @14% 2,35.508
e) Insurance 24,000
f) 40% of salary and wages 3,91,920
g) 40% of other contigent expenditure 3,12,000
and Utilities
TOTAL 11,76,978
Say = 11,77,000

b) B.E.P.

B.E.P.= Fixed Cost x 100 = 11,77,000 x 100 =67.2%

Fixed Cost + Profit 11,77,000 + 5,72,100

ADDRESSES OF MACHINERY AND EQUIPMENTS SUPPLIERS

1. M/S . Anant Engg.Works, Sirhind (Punjab)

2. M/S India Expeller Works , Nardo Industrial Estate , Ahmedabad.
3. M/S . Richardson & Cruddar Ltd,Sir J.J.Road,Byculla, Mumbai-400008.
4. M/S Chika Ltd, Mehta Chamber,13, Mathew Road, Mumbai-400001
5. M/S All India Rubber Board, Kottayam.
RUBBER CHEMICALS SUPPLIERS
1. M/S Kamani Metallic oxides Pvt,Ltd,
Nicolson Road Kumar Chambers
Mumbai-40001.
2. .M/S.Bhag Industries, Nagin Mahal
Vir Narima Road,Mumbai-400001.

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