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    WAXCANDLES Candle Production

    Uploaded by

    Leul
    The document provides information on manufacturing wax candles as a business venture. Some key points: 1) Wax candles are in high demand for lighting and decoration due to frequent power outages. The market for candles is growing. 2) The manufacturing process is simple, involving molding wax with wicks and pouring melted wax. Startup costs are about Rs. 52,535 with a 15 ton annual production capacity. 3) Financial projections estimate annual sales of Rs. 4.65 lakhs with a net profit of Rs. 27,192, a 6% profit margin and 52% return on investment.

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    WAXCANDLES Candle Production

    Uploaded by

    Leul
    102 views3 pages
    The document provides information on manufacturing wax candles as a business venture. Some key points: 1) Wax candles are in high demand for lighting and decoration due to frequent power outages. The market for candles is growing. 2) The manufacturing process is simple, involving molding wax with wicks and pouring melted wax. Startup costs are about Rs. 52,535 with a 15 ton annual production capacity. 3) Financial projections estimate annual sales of Rs. 4.65 lakhs with a net profit of Rs. 27,192, a 6% profit margin and 52% return on investment.

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    Project proposal

    Original Title

    WAXCANDLES candle production

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    The document provides information on manufacturing wax candles as a business venture. Some key points: 1) Wax candles are in high demand for lighting and decoration due to frequent power outages. The market for candles is growing. 2) The manufacturing process is simple, involving molding wax with wicks and pouring melted wax. Startup costs are about Rs. 52,535 with a 15 ton annual production capacity. 3) Financial projections estimate annual sales of Rs. 4.65 lakhs with a net profit of Rs. 27,192, a 6% profit margin and 52% return on investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    102 views3 pages

    WAXCANDLES Candle Production

    Uploaded by

    Leul
    The document provides information on manufacturing wax candles as a business venture. Some key points: 1) Wax candles are in high demand for lighting and decoration due to frequent power outages. The market for candles is growing. 2) The manufacturing process is simple, involving molding wax with wicks and pouring melted wax. Startup costs are about Rs. 52,535 with a 15 ton annual production capacity. 3) Financial projections estimate annual sales of Rs. 4.65 lakhs with a net profit of Rs. 27,192, a 6% profit margin and 52% return on investment.

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    NSIC Project Profiles

    WAX CANDLES

    1 INTRODUCTION
    Wax candles are one of the important consumer goods and it is assuming status of
    essential item to households in view of frequent power cuts particularly in the nights.
    It necessiates to use wax candles in the night for getting lighting.

    2 MARKET
    Candles are mass consumption items and are widely used for lighting and illumination
    in household, churches and other religious places, hotes & restaurants, etc. The
    demand for candles increasing day by day due to its various usages. Artistic and
    decorative candles also have very good expected potential in important functions.

    3 MANUFACTURING PROCESS
    Free wick is to be winded in required moulds in the given grews, lubricate the
    lubricating oil, screw the moulds as per the number given, melt the wax and add
    colour mix it well. Pour the melted wax into the ready moulds, keep the moulds for
    cooling for about half an hour, unscrew the plates of the moulds and take out the
    candles from it and pack it in either number or weight.

    The above process is very simple to manufacture just by using moulds. One to two
    months time is sufficient for complete implementation of the project.

    4. PRODUCTION CAPACITY PER ANNUM


    Capacity 15 tons
    Selling Price Rs. 31000 per ton

    4 PROJECT COST/CAPITAL INVESTMENT


    S.No Description Amount Rs.
    1 Fixed Capital 16600
    2 Working Capital (For one month) 35935
    Total Project Cost 52535

    5 MEANS OF FINANCE
    S.No Description %age Amount Rs.
    1 Promoter Contribution 15% 7880
    2 Subsidy /Soft Loan 20% 10507
    3 Term Loan 65% 34148
    Total 52535
    NSIC Project Profiles

    6 FINANCIAL ASPECTS

    A. FIXED CAPITAL
    i. Land and Buildings Rented Rs. 800 p.m

    ii. Machinery and Equipment


    S.No Description Qty. Rate Amount Rs.
    1 Moulds of different sizes 11000
    2 Wax melting vessel 600
    3 Gas Stove for melting wax 3000
    4 Balance 1000
    5 Miscellaneous items 1000
    Total 16600

    B. WORKING CAPITAL

    i. Salaries & Wages (per month)


    S.No Description Nos. Sal/mon. Amount Rs.
    1 Supervisor/Entrepreneur 1 1200 1200
    2 Semi-skilled worker 1 1000 1000
    Total 2200

    ii. Raw Material (per month)


    S.No Description Unit Qty. Rate Amount Rs.
    1 Paraffin wax kgs 1250 24 30000
    2 Wicks bundles 55 29 1595
    3 Lubricating oil LS 300
    4 Packing material Covers 1300 0.3 390
    Total 32285

    iii. Utilities (per month)


    S.No Description Amount Rs.
    1 Power 200
    2 Water 100
    Total 300

    iv. Other Expenses (per month)


    S.No Description Amount Rs.
    1 Postage & Stationery Expenses 100
    2 Transportation Expenses 100
    3 Advertisement Expenses 100
    4 Miscellaneous Expenses 50
    Total 350
    NSIC Project Profiles

    v. Total Working Capital (per month)


    S.No Description Amount Rs.
    1 Rent 800
    2 Salaries and Wages 2200
    3 Raw Material 32285
    4 Utilities 300
    5 Other Expenses 350
    Total 35935

    7 COST OF PRODUCTION (PER ANNUM)


    S.No Description Amount Rs.
    1 Total Working Capital 431220
    2 Depreciation @ 15% 2490
    3 Interest @ 12% 4098
    Total 437807.7

    8 TURNOVER (PER YEAR)


    S.No Description Unit Qty. Rate Rs. Amount Rs.
    1 Wax candles tons 15 31000 465000
    Total 465000

    9 FIXED COST (PER YEAR)


    S.No Description Amount Rs.
    1 Depreciation 2490
    2 Interest 4098
    3 Rent 9600
    4 Salaries & Wages @ 40% 10560
    5 Other Expenses incl. Utilities @ 40% 3120
    Total 29868

    10 PROFIT ANALYSIS & RATIOS

    1 Net Profit 27192


    2 Percentage of Profit on Sales 6%
    3 Percentage of Return on Investment 52%
    4 Break Even Point 52%

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