PROJECT REPORT

‘GARBAGE BAGS AND DUST BINS

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding “Garbage Bags And Dust Bins Manufacturing’: The
objective of the pre-feasibility is primarily to facilitate potential entrepreneurs’ in project
identification for investment and in order to serve this objective; the document covers
various aspects of the project concept development, startup, marketing, and finance and
business management

[We can modify the project capacity and project cost as per your requirement. We can also
prepare project report on any subject as per your requirement.]

Prepared By:

Institute for Industrial development

A unit of M/S Samadhan Samiti
Email: support@iid.org.in
Phone: +91 7408733333,
+91 7607655555

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 PROJECT PROFILE ON GARBAGE BAGS AND DUST BINS

INTRODUCTION
The rise in domestic & international trade and various favorable initiatives by the Indian
government have led to the extensive industrialization and growth of several industries, in
respect of preventive of COVID-19 For instance, initiatives such as Make in India and
industry-specific incentives are promoting the growth of various manufacturing companies
in the country. In addition, the rapidly expanding middle-class population, rise in
disposable incomes, and changing consumer lifestyles have led to a steady rise in the
demand for several products including Garbage bags and dust bins in the health care
industry and domestic fields. And in order to safe disposable of solid waste generated
from the hospital and housing sectors these products are most essential and unavoidable.
MANUFACTURING METHOD :
Garbage bags.
Bio Degradable Plastic roll bags are made by heat sealing and cutting rolls of film. Rolls of
tubing or sheeting are fed through a machine that draws material out to the proper length.
The machine then cycles to place a seal on the material and then cut it off to make an
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individual bag. In some cases, with small bags, machine cycle speeds may produce up to
70,000 bags per hour. In other instances, a large bag may run as slowly as 2,000 bags
per hour.

Dust boxes

Plastic dust boxes are manufactured by injection molding methods, , where plastic raw
materials melted in the plastic injection moulding machine and then injected into a mold
under high pressure. There, the material is cooled, solidified and afterwards released by
opening to get final products

ENERGY CONSERVATION:
General precautions for saving electricity are followed by the unit by providing energy
meter. These products are low energy consumption. Thus considerable energy could be
saved during manufacturing activities.

ELECTRICAL HP DETAILS:

Sl.No Name of the Machine No: of M/s Total HP

1 Plastic injection and blow mould 2 15

machine

Total H.P Connected 15

BASIS AND PRESUMPTION OF THE PROJECT:

i. The process of manufacture is on the basis of Single shift eight hours per shift with
three hundred working days in a year.
ii. Labor and wages mentioned in profile are as per prevailing local rates.
iii. Interest rate at 11.% considered in the project
iv. Working capital requirements taken only one month recurring expenditure,
however it may be taken up to 3 month recurring expenditure
v. However the rate of interest may be varying while implementing project.
vi. The Promoter contribution will be 25% of the total project cost

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POLLUTION CONTROL
The unit has to adopt necessary pollution control measures such as
proper height of the work shed with sufficient ventilation outlets.

MANPOWER
Following Manpower is required for starting Manufacturing unit : -
Production Supervisor 1
Skilled worker 3
Semi skilled worker 3
Manager 1
Accountant 1
Sales 2
Guard 1
Peon 1
Total 13

QUALITY STANDARDS

Bio degradable Plastic Garbage Bags IS/ISO: 17088:2008

And Plastic Dust Bins with lid IS:ISO:17088-2008

PRODUCTION CAPACITY PER ANNUM

Bio degradable Plastic Garbage Bags : 90,000 Kg

Plastic Dust Bins with lid pcs/10 lit capacity:: 1,56,000 pcs

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 BANK LOAN
Rate of Interest is assumed to be at 11.00%

DEPRECIATION
Depreciation has been calculated as per the provisions of Income Tax Act, 1961

APPROVALS & REGISTRATION REQUIREMENT:

 Basic registration required in this project:
 GST Registration
 Udyam Registration
 Choice of a Brand Name of the product and secure the name with Trademark if required
 NOC from State Pollution Control Board

IMPLEMENTATION SCHEDULE
The major activities and their implementation schedule are furnished below.
The assessment of the items required for implementation of the project has
been considered and accounted from the date of sanction of the loan:

Sno Activities Period in

No. months
1
Application to financial institutions,
1
submission of documents, certificates for
loan and other formalities
Placement of orders for machinery and 2
2 equipments and application for power
connection
3 Procurement of raw materials 1

5
 Clearing machinery, installation, 2
4
electrification etc.
5 Trial and commercial production 1
Total 7

FINANCIAL ASPECTS:

FIXED CAPITAL:

i) LAND & BUILDING:

Land & Building 3000 Sq. Ft.. on rental basis

ii) PLANT AND MACHINERIES

Particulars of Machines and

Sno No Rate Amount
Equipments

Automatic C Fold Garbage bag

1 making machine capacity to make 70- 1 9,00,000.00 9,00,000.00
140 pcs per minute with two fold

Semi automatic Injection moulding

2 machine capable of produce plastic 1 15,00,000.00 15,00,000.00
bins

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 Semi Automatic Injection moulding
3 1 7,50,000.00 7,50,000.00
machine capable of produce plastic lid

4 Air compressor 1 95,000.00 95,000.00

5 Weighing machine 1 18,000.00 18,000.00
Total LS 32,63,000.00
GST IN 18% 1 5,87,340.00
Total 38,50,340.00

COMPUTATION OF MANUFACTURING OF
1.Bio degradable Plastic Garbage Bags 2.Plastic Dust Bins with lid/10Lts capacity

Bio degradable Plastic Plastic Dust Bins with

Garbage Bags lid/10Lts capacity

Manufacturing Capacity per day 300.00 Kg 520.00 Nos

No. of Working Hour 8 8
No of Working Days per month 25 25
No. of Working Day per annum 300 300
Total Production per Annum 90,000.00 Kg 1,56,000.00 Nos
Year Capacity Kg Capacity Nos
Utilisation Utilisation

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 IST YEAR 60% 54,000.00 60% 93,600.00
IIND YEAR 63% 56,250.00 63% 97,500.00
IIIRD YEAR 65% 58,500.00 65% 1,01,400.00
IVTH YEAR 70% 63,000.00 70% 1,09,200.00
VTH YEAR 75% 67,500.00 75% 1,17,000.00

COMPUTATION OF RAW MATERIAL

Item Name Quantity Rate Per MT Total Cost

MT Rs Per Annum (100%)
Bio Degradable Plastic
120.00 3,00,000.00 360.00
rolls
HDPE/ PP 180.00 65,000.00 117.00
Total Including 18% GST
Total (Rounded off in lacs) 477.00
Annual Consumption cost
( In Lacs) 477.00

Raw Material Consumed Capacity Amount (Rs.)

Utilisation
IST YEAR 60% 286.20
IIND YEAR 63% 298.13
IIIRD YEAR 65% 310.05
IVTH YEAR 70% 333.90
VTH YEAR 75% 357.75

COMPUTATION OF SALE
Bio degradable Plastic Garbage Bags

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 IVTH
Particulars IST YEAR IIND YEAR IIIRD YEAR YEAR VTH YEAR

Op Stock - 1,260.00 1,313.00 1,365.00 1,470.00

Production 54,000.00 56,250.00 58,500.00 63,000.00 67,500.00

54,000.00 57,510.00 59,813.00 64,365.00 68,970.00

Less : Closing
Stock 1,260.00 1,313.00 1,365.00 1,470.00 136500%

Net Sale 52,740.00 56,197.00 58,448.00 62,895.00 67,605.00

Sale Price per kg 275.00 275.00 275.00 275.00 275.00

Sale (in Lacs)
A 145.04 154.54 160.73 172.96 185.91

Plastic Dust Bins with lid/10Lts capacity

Particulars IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR
Op Stock - 936.00 975.00 1,014.00 1,092.00
Production 93600.00 97500.00 101400.00 109200.00 117000.00
93,600.00 98,436.00 1,02,375.00 1,10,214.00 1,18,092.00
Less : Closing Stock 936.00 975.00 1,014.00 1,092.00 1,170.00
Net Sale 92,664.00 97,461.00 1,01,361.00 1,09,122.00 1,16,922.00
Sale Price per piece 205.00 205.00 205.00 205.00 205.00
Sale (in Lacs) B 189.96 199.80 207.79 223.70 239.69

Total Sales
A+B 335.00 354.34 368.52 396.66 425.60

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

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PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Finished Goods
4.64 4.82 5.01 5.38 5.32
Raw Material
14.31 14.91 15.50 16.70 17.89
Closing Stock 18.95 19.73 20.51 22.08 23.21

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Total
Amount
Stock in Hand 18.95
Sundry Debtors 33.50
Total 52.44
Less:Sundry Creditors 9.54
Working Capital Requirement 42.90
Less:Margin 10.73
MPBF 32.18
Working Capital Finance 32.00

BREAK UP OF LABOUR

Particulars Wages No of Total

Per
Employees Salary
Month
10
Production Supervisor 15,000.00 1 15,000.00

Skilled worker 10,000.00 3 30,000.00

Semi skilled worker 6,000.00 3 18,000.00
63,000.00
Add: 10% Fringe Benefit 6,300.00
Total Labour Cost Per Month 69,300.00
Total Labour Cost for the year ( In Rs.
7.00 8.32
Lakhs)

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager 15,000.00 1 15,000.00
Accountant 12,000.00 1 12,000.00
Sales 12,000.00 2 24,000.00
Guard 8,000.00 1 8,000.00
Peon 6,000.00 1 6,000.00
Total Salary Per Month 65,000.00

Add: 10% Fringe Benefit 6,500.00

Total Salary for the month 71,500.00
Total Salary for the year ( In Rs. Lakhs) 6.00 8.58

COMPUTATION OF DEPRECIATION
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Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - - -
Addition - - 38.50 0.50 39.00
Pre-operative Expenses - 0.49 0.01 0.50
- - 39.00 0.51 39.50
Less : Depreciation - - 5.85 0.05 5.90
WDV at end of Ist year - - 33.15 0.46 33.60
Additions During The Year - - - - -
- - 33.15 0.46 33.60
Less : Depreciation - - 4.97 0.05 5.02
WDV at end of IInd Year - - 28.18 0.41 28.59
Additions During The Year - - - - -
- - 28.18 0.41 28.59
Less : Depreciation - - 4.23 0.04 4.27
WDV at end of IIIrd year - - 23.95 0.37 24.32
Additions During The Year - - - - -
- - 23.95 0.37 24.32
Less : Depreciation - - 3.59 0.04 3.63
WDV at end of IV year - - 20.36 0.33 20.69
Additions During The Year - - - - -
- - 20.36 0.33 20.69
Less : Depreciation - - 3.05 0.03 3.09
WDV at end of Vth year - - 17.30 0.30 17.60

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REPAYMENT SCHEDULE OF TERM LOAN

Cl
Year Particulars Amount Addition Total Interest Repayment Balance
Opening
IST YEAR Balance

Ist Quarter - 29.25 29.25 0.80 - 29.25

Iind Quarter 29.25 - 29.25 0.80 - 29.25

IIIrd Quarter 29.25 - 29.25 0.80 1.63 27.63

Ivth Quarter 27.63 - 27.63 0.76 1.63 26.00
3.17 3.25
IIND Opening
YEAR Balance
Ist Quarter 26.00 - 26.00 0.72 1.63 24.38
Iind Quarter 24.38 - 24.38 0.67 1.63 22.75
IIIrd Quarter 22.75 - 22.75 0.63 1.63 21.13
Ivth Quarter 21.13 21.13 0.58 1.63 19.50
2.59 6.50
IIIRD Opening
YEAR Balance
Ist Quarter 19.50 - 19.50 0.54 1.63 17.88
Iind Quarter 17.88 - 17.88 0.49 1.63 16.25
IIIrd Quarter 16.25 - 16.25 0.45 1.63 14.63
Ivth Quarter 14.63 14.63 0.40 1.63 13.00
1.88 6.50
IVTH Opening
YEAR Balance
Ist Quarter 13.00 - 13.00 0.36 1.63 11.38
Iind Quarter 11.38 - 11.38 0.31 1.63 9.75
IIIrd Quarter 9.75 - 9.75 0.27 1.63 8.13
Ivth Quarter 8.13 8.13 0.22 1.63 6.50
1.16 6.50
VTH Opening
YEAR Balance
Ist Quarter 6.50 - 6.50 0.18 1.63 4.88
Iind Quarter 4.88 - 4.88 0.13 1.63 3.25
IIIrd Quarter 3.25 - 3.25 0.09 1.63 1.63
-
Ivth Quarter 1.63 1.63 0.04 1.63
0.00

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 0.45 6.50

CALCULATION OF D.S.C.R

IST IIND IIIRD IVTH VTH

PARTICULARS YEAR YEAR YEAR YEAR YEAR
CASH ACCRUALS 12.34 13.19 13.55 14.50 15.43
Interest on Term Loan 3.17 2.59 1.88 1.16 0.45
Total 15.51 15.78 15.42 15.66 15.87
REPAYMENT
Instalment of Term Loan 3.25 6.50 6.50 6.50 6.50
Interest on Term Loan 3.17 2.59 1.88 1.16 0.45

Total 6.42 9.09 8.38 7.66 6.95

DEBT SERVICE COVERAGE

RATIO 2.41 1.74 1.84 2.04 2.28
AVERAGE D.S.C.R. 2.06

COMPUTATION OF ELECTRICITY Rs in lac

POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required KW 15
Load Factor 0.7460
Electricity Charges per unit 10.00
Total Working Days 200
Electricity Charges ( 8 Hrs Per day ) 1.79

Year Capacity Amount

(in Lacs)
IST YEAR 60% 1.07
IIND YEAR 63% 1.12
IIIRD YEAR 65% 1.16
IVTH YEAR 70% 1.25
VTH YEAR 75% 1.34

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PROJECTED CASH FLOW STATEMENT

IST IIND IIIRD IVTH VTH

PARTICULARS YEAR YEAR YEAR YEAR YEAR

SOURCES OF FUND
Own Capital 20.92 -
Net Profit 6.44 8.17 9.28 11.57 13.70
Depriciation & Exp. W/off 5.90 5.02 4.27 3.63 3.09
Increase in Cash Credit 32.00 - - - -
Increase In Term Loan 29.25 - - - -
Increase in Creditors 9.54 0.40 0.40 0.79 0.80
Increase in Provisions 0.36 0.04 0.04 0.04 0.05
TOTAL : 104.41 13.62 13.98 16.04 17.63
APPLICATION OF FUND
Increase in Fixed Assets 39.50 - - - -
Increase in Stock 18.95 0.78 0.78 1.57 1.13
Increase in Debtors 33.50 1.93 1.42 2.81 2.89
Increase in Deposits & Adv 2.00 0.25 0.25 0.25 0.25
Repayment of Term Loan 3.25 6.50 6.50 6.50 6.50
Taxation - - - 0.70 1.36
Drawings 4.00 5.00 5.00 5.00 5.00
TOTAL : 101.20 14.47 13.95 16.83 17.13
Opening Cash & Bank
Balance - 3.21 2.36 2.39 1.60
- -
Add : Surplus 3.21 0.85 0.03 0.79 0.50
Closing Cash & Bank
Balance 3.21 2.36 2.39 1.60 2.10

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PROJECTED BALANCE SHEET

IST IIND IIIRD IVTH VTH

PARTICULARS YEAR YEAR YEAR YEAR YEAR

SOURCES OF FUND
Capital Account
Opening Balance - 23.36 26.52 30.80 36.68
Add: Additions 20.92 - - - -
Add: Net Profit 6.44 8.17 9.28 10.87 12.34
Less: Drawings 4.00 5.00 5.00 5.00 5.00
Closing Balance 23.36 26.52 30.80 36.68 44.02
Term Loan 26.00 19.50 13.00 6.50 -
Cash Credit 32.00 32.00 32.00 32.00 32.00
Sundry Creditors 9.54 9.94 10.34 11.13 11.93
Provisions & Other Liab 0.36 0.40 0.44 0.48 0.53
TOTAL : 91.26 88.36 86.57 86.79 88.47
APPLICATION OF
FUND
Fixed Assets ( Gross) 39.50 39.50 39.50 39.50 39.50
Gross Dep. 5.90 10.92 15.19 18.81 21.90
Net Fixed Assets 33.60 28.59 24.32 20.69 17.60
Current Assets
Sundry Debtors 33.50 35.43 36.85 39.67 42.56
Stock in Hand 18.95 19.73 20.51 22.08 23.21
Cash and Bank 3.21 2.36 2.39 1.60 2.10
Deposits & Advances 2.00 2.25 2.50 2.75 3.00
TOTAL : 91.26 88.36 86.57 86.79 88.47

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PROJECTED PROFITABILITY STATEMENT

IST IIND IIIRD IVTH VTH

PARTICULARS YEAR YEAR YEAR YEAR YEAR

A) SALES

Gross Sale 335.00 354.34 368.52 396.66 425.60

Total (A) 335.00 354.34 368.52 396.66 425.60
B) COST OF SALES
Raw Material Consumed 286.20 298.13 310.05 333.90 357.75
Electricity Expenses 1.07 1.12 1.16 1.25 1.34
Repair & Maintenance 3.35 3.54 3.69 3.97 4.26
Labour & Wages 8.32 9.15 10.06 11.07 12.18
Depreciation 5.90 5.02 4.27 3.63 3.09
Consummable and stores
expenses 6.70 7.09 7.37 7.93 8.51
Cost of Production 311.54 324.04 336.60 361.75 387.12
Add: Opening Stock /WIP - 4.64 4.82 5.01 5.38
Less: Closing Stock /WIP 4.64 4.82 5.01 5.38 5.32

Cost of Sales (B) 306.91 323.85 336.41 361.38 387.19

C) GROSS PROFIT (A-B) 28.09 30.48 32.11 35.28 38.42
8.39% 8.60% 8.71% 8.90% 9.03%
D) Bank Interest (Term Loan ) 3.17 2.59 1.88 1.16 0.45

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 Bank Interest ( C.C. Limit ) 3.20 3.20 3.20 3.20 3.20
E) Salary to Staff 8.58 9.44 10.38 11.42 12.56
F) Selling & Adm Expenses
6.70 7.09 7.37 7.93 8.51
Exp.
(Including rent)
TOTAL (D+E) 21.65 22.32 22.83 23.72 24.72
H) NET PROFIT 6.44 8.17 9.28 11.57 13.70

I) Taxation 0.70 1.36

J) PROFIT (After Tax) 6.44 8.17 9.28 10.87 12.34

BREAK EVEN POINT ANALYSIS

Year I II III IV V
Net Sales & Other Income 335.00 354.34 368.52 396.66 425.60
Less : Op. WIP Goods - 4.64 4.82 5.01 5.38
Add : Cl. WIP Goods 4.64 4.82 5.01 5.38 5.32
Total Sales 339.63 354.52 368.71 397.04 425.54
Variable & Semi Variable Exp.
Raw Material & Tax 286.20 298.13 310.05 333.90 357.75
Electricity Exp/Coal Consumption at 85% 0.91 0.95 0.99 1.07 1.14
Manufacturing Expenses 80% 8.04 8.50 8.84 9.52 10.21
Wages & Salary at 60% 10.14 11.15 12.27 13.49 14.84
Selling & adminstrative Expenses 80% 5.36 5.67 5.90 6.35 6.81
Intt. On Working Capital Loan 3.20 3.20 3.20 3.20 3.20
Total Variable & Semi Variable Exp 313.85 327.60 341.25 367.52 393.96
Contribution 25.78 26.92 27.46 29.51 31.58
Fixed & Semi Fixed Expenses
Manufacturing Expenses 20% 2.01 2.13 2.21 2.38 2.55
Electricity Exp/Coal Consumption at 15% 0.16 0.17 0.17 0.19 0.20
Wages & Salary at 40% 6.76 7.43 8.18 9.00 9.89
Interest on Term Loan 3.17 2.59 1.88 1.16 0.45
Depreciation 5.90 5.02 4.27 3.63 3.09
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Selling & adminstrative Expenses 20% 1.34 1.42 1.47 1.59 1.70
Total Fixed Expenses 19.34 18.76 18.18 17.94 17.89
Capacity Utilization 60% 63% 65% 70% 75%
OPERATING PROFIT 6.44 8.17 9.28 11.57 13.70
BREAK EVEN POINT 45% 44% 43% 43% 42%
BREAK EVEN SALES 254.82 246.97 244.12 241.38 240.99

FINANCIAL INDICATORS

PARTICULARS I II III IV V
TURNOVER 335.00 354.34 368.52 396.66 425.60
GROSS PROFIT 28.09 30.48 32.11 35.28 38.42
G.P. RATIO 8.39% 8.60% 8.71% 8.90% 9.03%
NET PROFIT 6.44 8.17 9.28 10.87 12.34
PAT/SALES RATIO 1.92% 2.31% 2.52% 2.74% 2.90%
CURRENT ASSETS 57.65 59.77 62.26 66.10 70.87
CURRENT LIABILITIES 41.90 42.33 42.77 43.61 44.45
CURRENT RATIO 1.38 1.41 1.46 1.52 1.59
TERM LOAN 26.00 19.50 13.00 6.50 -
TOTAL NET WORTH 23.36 26.52 30.80 36.68 44.02
DEBT/EQUITY 1.11 0.74 0.42 0.18 -
TOTAL NET WORTH 23.36 26.52 30.80 36.68 44.02

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TOTAL OUTSIDE LIABILITIES 67.90 61.84 55.77 50.11 44.45
TOL/TNW 2.91 2.33 1.81 1.37 1.01
PBDIT 18.71 18.98 18.62 19.56 20.43
INTEREST 6.37 5.79 5.08 4.36 3.65
INTEREST COVERAGE
RATIO 2.94 3.28 3.67 4.48 5.60
WDV 33.60 28.59 24.32 20.69 17.60
TERM LOAN 26.00 19.50 13.00 6.50 -
FACR 1.29 1.47 1.87 3.18 #DIV/0!

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 DISCLAIMER

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