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Pre-feasibility project report

 

 

 

 

 

 

 

 

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Product: HDPE Monofilament Yarn

Machinery required:

  • Compounding Unit (Mixer Blenders or Heated Rolls)

  • Monafilament-making Unit

  • Water Cooling arrangements

 

Cost indications (as in India early 1999)
(for manufacture of 150 tonnes per year)
(Read our Warning about the limitations of this costing)

a) Covered Land Area (250 sq metres): Rs.240,000
b) Number of employees: 15
c) Cost of machinery: Rs.720,000
d) Fixed capital (a + c): Rs.960,000
e) Working capital for three months: Rs.2,020,000
f) Capital employed (d + e): Rs.2,980,000
g) Production cost per year Rs.8,840,000
h) Sales turnover per year Rs.10,200,000
i) Profit (h – g) Rs.1,360,000
j) Return on capital employed (i as % of f) 45.6 per cent
k) Profit on sales turnover (i as % of h) 13.3 per cent

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