1

PROJECT PROFILE
ON
RUBBER HAND GLOVE MANUFACTURING UNIT
(Action Plan Year 2020-21)

PRODUCT CODE : 22199 (as per IS 25518: 2009)

PRODUCTS : Single use Rubber Glove, Rubber Gloves (Gen Appl)
QUALITY & STANDARD : As per IS25518: 2009/Customer specification
PRODUCTION CAPACITY (P.A.) : 1) Rubber Glove (Medical) - 84000 pairs
2) Rubber Glove (Gen Appl)-120000 Pairs

Value : 114.6 Lacs

MONTH AND YEAR OF PREPARATION : June, 2020

TOTAL COST OF THE PROJECT : 75.12 Lacs
WORKING CAPITAL FOR 1st YR : 43.54 Lacs
WORKINGCAPITAL FOR 2nd YR : 30.47 Lacs
WORKING CAPITAL FOR 3rd YR : 34.83 Lacs
EFFECTIVE WORKING DAYS : 300Days
EMPLOYMENT : 10Nos
DSCR : 3.35
BEP : 61%

PREPARED BY : Br MSME Development Institute,

Diphu, Dist- Karbi Anglong
Assam.
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A. INTRODUCTION

There are about 200 latex gloves manufacturers in India in small and medium scale sectors. But the
resource for raw material mainly the natural rubber production is increasing in Northeastern region day by
day. The natural rubbers produced in NER are being sold to support industry in other part of the India. The
price of the raw rubber depends as per the trader’s call only. Therefore the creation of local buyer as
Rubber based industry has high potential to encourage the rubber growers and creation of market for the
growers. Another reason to moving towards setting up of manufacturing plant for rubber products is to
make available of PPE kit part like rubber hand gloves and safety gloves for general use due to COVID-19
situation. It has high demand and gloves for different applications can be made in production line. The
various steps from Rubber Tree plantation to Glove making is as follows: Rubber trees are usually ready to
be tapped after about seven years of growth. A steel tapping knife is used to remove thin strips of bark
from the tree at a downward curve. This directs the milky-white sap to a spiel, or spigot, which channels it
into a cup affixed to the tree. Tapping is done in the early morning, because sap coagulates faster later in
the day, when temperatures are higher, and reduces the flow. After about six hours, the fluid stops flowing.
In that six-hour period, a tree can usually fill a gallon bucket. The tree can be tapped again with another
fresh cut, usually the next day. The latex is preserved with ammonia. Trees often are rested for a period
after heavy tapping.

Because of its high water and non-rubber content—about 70% is water, protein, sterol glycosides,
resins, ash, and sugars—the latex is concentrated and stabilized. The latex is mixed with processing
chemicals including sulfur, zinc oxide, accelerators, pigments, stabilizers, a de-webbing agent, and
antioxidants. The latex matures for 24 to 36 hours to become a compound ready for dipping.

Production uses ceramic or aluminum hand-shaped molds, or formers, that are first extensively washed
in hot water and chlorine to ensure there is no residue from previous batches. Next the formers, suspended
on a continuous moving chain, are dipped into a mixture of calcium nitrate solution and calcium
carbonate—the nitrate is a coagulant, while the carbonate helps the gloves release from the formers.

After drying, the molds are dipped into the latex compound, with the duration of the dip determining
the mil thickness of the gloves. The freshly molded gloves are next leached in a mixture of hot water and
chlorine, which removes residual latex proteins and chemicals to help reduce the severity of any allergic
reactions to latex.

The gloves are then dried and cured, which is where Charles Goodyear’s enormously important
discovery enters the process. Vulcanization converts the gloves to an elastic state by causing a reaction
between rubber molecules in the latex and chemicals that have been added, and gives gloves their
elasticity so they are less likely to tear.

After drying, the gloves are rinsed again to leach out more latex proteins, then the cuffs are beaded, or
rolled, to make them easier to don and doff. After a dip into cornstarch and a final drying, pneumatic air
jets strip the finished gloves from the formers, or workers remove them by hand. The gloves are hot-air
tumbled to remove any remaining powder. The molds are given another thorough chemical wash and rinse,
and the process begins anew.
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B. SCOPE OF MARKET

Due to COVID-19 situation the demand of rubber glove is high as PPE for health workers. Moreover for
general application also increases as people are more conscious to take precautionary safety front line
protection to avoid direct contact from any other diseases. The requirement of general application may
have high demand in future if public has this trend to use hand gloves as fashion and frontline safety
barrier. This will be more in demand if certain rules come as “no gloves no” entry to any institutions in
future similar to Mask at present situation.

C. RAW MATERIAL

The main Raw material as natural rubber has sufficient production locally and for the chemical part all
are manageable to buy from Guwahati and other part of the country.

D. PROCESS FLOW DIAGRAM

The manufacturing process for Rubber Gloves involves very few steps due to the automatic machines
and the machine connects all the forms in moving chain to dip and clean in different tanks of latex and
chemicals for continuous process till the packing of Gloves. The business plan is to Natural rubber to Hand
Gloves of different applications as per customer demands as per the following flow diagram of the unit and
with coloured design required by customer.

E. FLOW DIAGRAM
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F. IMPLEMENTATION SCHEDULE:

The project implementation involves various activities like market surveys and tie-ups,
procurement of know-how, arrangement of premises/ land, building, preparation of project report,
registration, financing, purchase of machines, commissioning of project, recruitment of staff and
training, arrangement of power, procurement of raw materials, packing materials, trial production
etc. in order to implement the project efficiently and in the shortest period there is a need to initiate
many activities simultaneously as far as possible. This will not only cut the slack period but also
will give quick results and be cost effective.

S.No Activity Estimated period

. required
1. Market survey 15-20 days
2. Procurement of know-how/experts 30 days
3. Arrangement of premises 30-45 days
4. Obtaining quotations and preparation of project report. 15-20 days
5. Registration and financing. 45-60 days
6. Recruitment of personnel and training. 30-45 days
7. Obtaining power connection. 15-30 days
8. Procurement of machines and equipments. 45-60 days
9. Installation and electrification of machinery. 20-30 days
10. Procurement of raw materials, consumables, packing 10-15 days
materials etc.
11. Product development/trial production. 5-10 days
12. Commercial production. 05 days.
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ANNEXURE-1
TOTAL COST OF THE PROJECT
Sl.
Particulars Rs. Lakh
No
1 Land and Building 0.00
2 Machinery & Equipments 58.00
3 Miscellaneous fixed assets 0.65
4 Preliminary & Pre operative Expenses 5.92
5 Contingencies 2.93
Total Fixed Capital 67.50
6 Working Capital Requirement annually 30.47
Total cost of Project per Annum 97.97
7 Working Capital Requirement per Quarter 7.62
8 Total Project cost for finance 75.12

ANNEXURE-2
MEANS OF FINANCE
Sl.
Particulars Equity (%) Rs. Lakh
No
1 Promoter's Contribution 10% 7.51
2 Term Loan 90% 67.60
Total 75.12

ANNEXURE-3
LAND AND BUILDING
Sl.
Items Sq. mtr. Rs. Lakh
No
1 Land and Building 400 0.00

ANNEXURE-4
MACHINERY & EQUIPMENTS
Sl. Cost Rs
Description Qty Rate (Rs)
No. (Lakh)
Automatic Latex Hand Glove
Making Machine-(Set)
1 1 48,00,000 48.00
including tanks and forms,
Chain and Motors.
2 Testing equipments NA 5.00
3 Packing equipment NA 5.00
Total 58.00
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ANNEXURE-5
MISCELLANEUOUS FIXED ASSETS
Sl. Rate Rs.
Items No. reqd Total cost
No. Lakh
working tables, storage bins
1 1.00 0.30 0.30
etc.
2 Electrification, cabling etc 1.00 0.35 0.35
Total 0.65

ANNEXURE-6
RAW MATERIAL REQUIREMENT (at 100% capacity utilization)
Basis Effective working days/Annum
300 8hr/shift/day

Cost
Sl. Qty
Items Qty(Kg)/Month Rate (Rs)/kg (Rs.
No. (pcs)/yr
Lakh)
1 Latex raw 60% DRP 1000 12000.00 120 14.40
2 Calcium Nitrate 20 240.00 25 0.06
3 Calcium Carbonate 20 240.00 18 0.04
4 Sulfur 20 240.00 50 0.12
5 Zinc oxide 20 240.00 140 0.34
Accelerator (TMTD-
6 Tetramethyl thiruam disulfide) 10 120.00 150 0.18
7 antioxidant 10 120.00 180 0.22
8 Other chemicals 0.40

Total 15.76
at 70% 70% I YR 11.03
at 80% 80% II YR 12.60
at 90% 90% III YR 14.18

ANNEXURE-7
UTILITIES (at 100% capacity utilization)
Sl.
Rs. Lakh
No. Particulars
1 Electricity power Charges 1.80
Dringking Water Charges
0.24
2 Bill
Total 2.04
Annual utilities bill
at 70% capacity utilization 70% I YR 1.43
at 80% capacity utilization 80% II YR 1.63
at 90% capacity utilization 90% III YR 1.84
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ANNEXURE-8
MANPOWER REQUIREMENT
Sl. No. wages/mly Total Amount (
No. Particulars reqd (lakh) Lakh)
Manager cum
1 0.15 0.15
1 Superviser
2 Machine Operator 1 0.12 0.12
3 Skilled worker 3 0.06 0.18
4 Uskilled worker 3 0.5 1.5
Total Manpower 8 1.95
Add 10% towards
0.20
benefits
Total 2.15
Annual wages bill (in 12 Months) 25.74

ANNEXURE-9
WORKING CAPITAL REQUIREMENT
Sl. at
Items Norms/yr at 70% at 80%
No. 90%
Raw Materials or
1 15.76 11.03 12.60 14.18
Consumables
2 Wages and Salaries 25.74 18.02 20.59 23.17
3 Utilities 2.04 1.43 1.63 1.84
Total 43.54 30.47 34.83 39.18

ANNEXURE-10
PRELIMINARY AND PRE OPERATIVE EXPENSES
Sl.
Particulars Rs. Lakh Prov.(%) Rs. Lakh
No.
1 Land & Building 0.00 10% 0.00
2 On Machinery & Equipments 58.00 10% 5.80
On miscellaneous fixed
3 0.65 10% 0.07
assets
4 Legal Expenses 0.05
Total 5.92

ANNEXURE-11
CONTINGENCIES
Sl.
Particulars Rs. Lakh Prov.(%) Rs. Lakh
No.
1 Land & Building 0.00 10% 0
2 On Machinery & Equipments 58.00 5% 2.90
On miscellaneous fixed
3 0.65 5% 0.03
assets
Total 2.93
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APPENDIX-I
INCOME STATEMENT
(at 100% capacity utilization) (Rs. Lakh)
Qty
Sl. Qty (Pairs) Rate(Rs)
Particulars (pairs) Rs. Lakh
No. PA (avg)
PM
1 Latex hand Gloves (Medical) 7000 84000 65 54.60
Latex hand Gloves (General
2 10000 120000 50 60.00
Application)
Total 114.60
Assume 10% increase from 2nd year
at 70% capacity utilization 1st yr 80.22
at 80% capacity utilization 2nd yr 88.24
at 90% capacity utilization 3rd yr 97.07

APPENDIX-II
LOAN REPAYMENT SCHEDULE & INTEREST CALCULATION (Rs
Lakh)
Total term Loan P Rs. Lakh 67.60
Rate of Interest r (%) 12%
Repayment Schedule n (yrs.) 7
Moratorium Period (yrs.) 1

Beginning Repayment Principle Interest (Rs

Sl.no. Particulars
amt (lakh) (Rs Lakh) Amt.(lakh) Lakh)
1 1st year payment 67.60 0.00 67.60 8.11
2 2nd year payment 67.60 11.27 56.34 8.11
3 3rd year payment 56.34 11.27 45.07 6.76
4 4th year payment 45.07 11.27 33.80 5.41
5 5th year payment 33.80 11.27 22.53 4.06
6 6th year payment 22.53 11.27 11.27 2.70
7 7th year payment 11.27 11.27 0.00 1.35
Total 36.51

APPENDIX-III
ADMINISTRATIVE OVERHEAD EXPENSES
Sl.
Particulars Rs. Lakh
No.
1 Telephone, Internet cost. 0.06
2 Travelling and conveyance etc 0.3
3 Sales Expenses 0.24
Total 0.6
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APPENDIX-IV
REPAIRING AND MAINTENANCE
Sl. Rs.
Particulars Prov.(%) Rs. Lakh
No. Lakh
1 Land & Building 0.00 5% 0.00
2 Machinery and Equipments 58.00 5% 2.90
3 Misc. fixed assets 0.65 3% 0.02
Insurance 2% on machinery
4 58.65 2% 1.17
and MFA
Total 4.09

APPENDIX-V
DEPRECIATION
Sl. Rs. P&P-Op. Installed
Assets for Installed cost Contingencies
No. Lakh Exp. Cost
1 Land & Building 0.00 0.00 0.00 0.00
Machinery and
2 58.00 5.80 2.90 66.70
Equipments
3 Misc. fixed assets 0.65 0.03 0.03 0.72
Total 58.65 5.83 2.93 67.42

Depreciation:
Sl. Rs.
Items Provision.(%) Rs. Lakh
No. Lakh
1 Land & Building 0.00 5% 0.00
Machinery and
2 66.70 10% 6.67
Equipments
3 Misc. fixed assets 0.72 8% 0.06
Total 6.73
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APPENDIX-VI
COST OF PRODUCTION AND PROFITABILITY STATEMENT
(Rs.Lakh)
2nd
A Cost of Production 1st yr 3rd yr 4th yr 5th yr 6th yr 7th yr
yr
1 Capacity utilization 70% 80% 90% 90% 90% 90% 90%
2 Working Days 300 300 300 300 300 300 300
3 Shift/day 1 1 1 1 1 1.00 1
4 Sales Revenue 80.22 91.68 103.14 103.14 103.14 103.14 103.14
B Cost of Operation:
1 Consumables 11.03 12.60 14.18 14.18 14.18 14.18 14.18
2 Utilities 1.43 1.63 1.84 1.84 1.84 1.84 1.84
Wages & Salaries (5%
3 25.74 27.03 28.38 29.80 31.29 32.85 34.49
increment)
4 Depreciation 6.73 6.73 6.73 6.73 6.73 6.73 6.73
Admn. Overhead exp. (5%
5 0.60 0.63 0.66 0.69 0.73 0.77 0.80
increment)
Rep. & maintenance (5%
6 4.09 4.30 4.51 4.74 4.97 5.22 5.48
increment)
7 Interest 8.11 8.11 6.76 5.41 4.06 2.70 1.35
Total 57.73 61.03 63.06 63.38 63.79 64.29 64.88
C Operation profit 22.49 30.65 40.08 39.76 39.35 38.85 38.26
D Net profit 22.49 30.65 40.08 39.76 39.35 38.85 38.26
E Cumulative surplus 22.49 53.14 93.23 132.99 172.34 211.19 249.45
APPENDIX VII
CASH FLOW STATEMENT (Rs. Lakh)

P&P
2nd 6th
A Sources Op. 1st yr 3rd yr 4th yr 5th yr 7th yr
yr yr
Period
1 Equity 7.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2 Profit(ADBIT) 0.00 30.60 38.76 46.85 45.17 43.41 41.56 39.61
3 Depreciation 0.00 6.73 6.73 6.73 6.73 6.73 6.73 6.73
4 Term Loan 67.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5 Working Capital 0.00 30.47 4.35 4.35 0.00 0.00 0.00 0.00
Total 75.12 67.81 49.84 57.93 51.89 50.13 48.28 46.34
B APPLICATION:
1 Fixed Capital 67.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2 Repayment 0.00 0.00 11.27 11.27 11.27 11.27 11.27 11.27
3 Interest 0.00 8.11 8.11 6.76 5.41 4.06 2.70 1.35
4 Current Assets 0.00 30.47 34.83 39.18 39.18 39.18 39.18 39.18
Total 67.60 38.59 54.21 57.21 55.86 54.51 53.15 51.80

C Opening Balance 0.00 7.51 36.73 32.37 33.08 29.12 24.75 19.88
D Net Surplus 7.51 29.22 -4.36 0.72 -3.96 -4.37 -4.87 -5.46
E Closing Balance 7.51 36.73 32.37 33.08 29.12 24.75 19.88 14.42
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APPENDIX-
VIII
PROJECTED BALANCE SHEET (Rs. Lakh)

Pre-
A Liabilities Op. 1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr
Period
1 Equity 7.51 7.51 7.51 7.51 7.51 7.51 7.51 7.51
Reserves
2 0.00 22.49 53.14 93.23 132.99 172.34 211.19 249.45
Surplus
3 Term Loan 67.60 67.60 56.34 45.07 33.80 22.53 11.27 0.00
Working
4 0.00 30.47 34.83 39.18 39.18 39.18 39.18 39.18
Capital
Total 75.12 128.08 151.82 184.99 213.48 241.56 269.15 296.14

B Assets:
1 Fixed Assets 67.50 67.50 67.50 67.50 67.50 67.50 67.50 67.50
Less
2 0.00 6.73 20.18 20.18 26.91 33.64 40.36 47.09
Depreciation
Net Fixed
3 67.50 60.77 47.32 47.32 40.59 33.86 27.13 20.41
Assets
Current
4 0.00 30.47 34.83 39.18 39.18 39.18 39.18 39.18
Assets
Cash and
5 7.62 36.84 69.67 98.49 133.71 168.52 202.83 236.55
Bank Balance
Total 75.12 128.08 151.82 184.99 213.48 241.56 269.15 296.14

APPENDIX-IX
DEBT SERVICE COVERAGE RATION (Rs.Lakh)
2nd 3rd 7th
A Cash Accruals: 1st yr 4th yr 5th yr 6th yr
yr yr yr
1 Net Profit 22.49 30.65 40.08 39.76 39.35 38.85 38.26
2 Depreciation 6.73 6.73 6.73 6.73 6.73 6.73 6.73
3 Interest 8.11 8.11 6.76 5.41 4.06 2.70 1.35
Total (A) 37.33 45.49 53.57 51.89 50.13 48.28 46.34
B Debt Service Requirement:
1 Repayment 0.00 11.27 11.27 11.27 11.27 11.27 11.27
2 Interest 8.11 8.11 6.76 5.41 4.06 2.70 1.35
Total (B) 8.11 19.38 18.03 16.68 15.32 13.97 12.62
C DSCR=A/B 4.60 2.35 2.97 3.11 3.27 3.46 3.67
Avg. DSCR 3.35
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APPENDIX-X
BREAK EVEN POINT ANALYSIS (RS.Lakh)
(at 90% Capacity Utilization)

A Variable Cost Rs. Lakh

1 Consumables 14.18
2 Utilities 1.84
3 Repairing and maintenance (50%) 4.09
Total 20.11
B Semi-Variable & Fixed Cost:
1 Repairing and Maintenance (50%) 4.09
2 Admn. Overhead expenses 0.60
3 Depreciation 6.73
4 Wages & Salaries 23.17
5 Interest 6.76
Total 41.35
Total fixed cost 61.45
C Sales Revenue (at 90% CU) 103.14
D Profit Contribution at 90% CU 40.08
B.E.P = (fixedcost/(fixed
E 61%
cost+profit))%

G. Address of Machinery and Equipment Suppliers:

Glove making machine:
1. Automatic Latex Glove Making M/C set- SD Machinery, Ahmadabad, Gujarat.

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