PROJECT REPORT

Of

BABY WALKER

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Baby Walker Manufacturing unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and 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.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE
1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) : xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxx
Mobile xxxxxxx

5 Product and By Product : BABY WALKER

6 Name of the project / business activity proposed : BABY WALKER MANUFACTURING UNIT

7 Cost of Project : Rs.23.77 Lakhs

8 Means of Finance
Term Loan Rs.15.26 Lakhs
Own Capital Rs.2.38 Lakhs
Working Capital Rs.6.14 Lakhs

9 Debt Service Coverage Ratio : 2.99

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 24%

13 Employment : 12 Persons

14 Power Requirement : 50.00 HP

PP Pellets, Steel Pipes, Cloth Fabrics, Rivets, Screws

15 Major Raw materials
: & nuts, Stickers and Packing material

16 Estimated Annual Sales Turnover (Max Capacity) : 205.28 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 16.35
Furniture & Fixtures 0.60
Working Capital 6.82
Total 23.77

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.38
Working Capital(Finance) 6.14
Term Loan 15.26
Total 23.77
 BABY WALKER MANUFACTURING UNIT

Introduction:

Baby walkers assist new-borns in taking their first steps. With wheels, a seat, and a
sturdy frame, this is a non-essential nursery item. In a restricted environment, young
new-borns who are unable to walk move around quickly by using aggressive force. A
tray containing toys or jangles is standard on baby walkers. The evolution of baby
walkers began in the 15th century, with advances leading to the present type of
synthetic-material baby walkers. Almost half of the world's infants are forced to use
a baby walker to help them develop their walking abilities. However, several accidents
and injuries have been documented as a result of the use of baby walkers. These
occurrences might be hazardous at times for two reasons. The first is the child's
increasing mobility and speed. Another aspect is the child's increased height and reach
while seated in a walker. To attract greater volume sales in the market, baby walkers
come in a variety of styles and creative functions. Baby walkers are portable because
they may be folded and transported from one location to another.
Uses & Market Potential:

A baby walker is a device that allows infants who are unable to walk independently
to travel from one location to another. Toddlers can also use modern baby walkers.
They have a hard-plastic base with wheels on top, as well as a suspended cloth seat
with two leg openings.
The worldwide baby walker market is well-established in many areas of the globe,
and it is fueled by a number of factors. One of the key reasons that will likely have
a favorable influence on the market's growth over the next five years is expansion
through organised retail, which is occurring all over the world. With changing
government rules and evolving customer buying behaviour from conventional to
contemporary retail channels, organised retail's proportion of the market is growing.
The expansion of organised retail is assisting multinational companies in their
penetration as well as increasing product visibility. This is projected to lead to
increased expenditure on baby walkers, resulting in considerable market growth
during the forecast period. The worldwide baby walker market is expected to
increase at a CAGR of 3.1 percent from 2016 to 2020, according to experts.
Product:
Baby Walker

Raw Material:
The raw materials required are:

 Food Grade PP Pellets

 Steel Pipes

 Cloth Fabrics
  Rivets

 Screws & Nuts

 Stickers & Packaging Materials

Manufacturing Process:

Raw material procurement

Dye is mounted in Injection Molding

Machine

PP Granules are feeded into hoper

Assembly of anciallary parts

Bending

Hole Punching & Polishing

Assembly of moving wheels

Testing & Pacakging

Area:

The industrial setup requires space for Inventory, workshop or manufacturing area, space
for power supply utilities and polishing area. Also, some of the area of building is
required for office staff facilities, office furniture, etc. Thus, the approximate total area
required for complete industrial setup is 2000-2500Sqft.
Cost of Machines:
Machine Quantity Rate
Injection Molding Machine 1 750000
Pipe Bending Machine 1 200000
Riveting Machine 1 175000
Hole Press Machine 1 270000
Welding Machine 1 100000
Polishing Machine 1 10000
Testing Machine 1 80000
Other Equipment’s - 50000
Total Amount 1635000

Power Requirement- The estimated Power requirement is taken at 50 HP.

Manpower Requirement– Following manpower is required:

 Machine operator-2
 Skilled/unskilled worker-3
 Helper-4
 Manager cum Accountant-1
 Sales Personnel-2

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 3.60 6.28 10.02 14.02
Add: Additions 2.38 - - - -
Add: Net Profit 5.42 7.29 9.24 11.00 12.85
Less: Drawings 4.20 4.60 5.50 7.00 9.00
Closing Balance 3.60 6.28 10.02 14.02 17.87
CC Limit 6.14 6.14 6.14 6.14 6.14
Term Loan 13.56 10.17 6.78 3.39 -
Sundry Creditors 3.60 4.28 4.99 5.73 6.49

TOTAL : 26.89 26.87 27.93 29.28 30.50

APPLICATION OF FUND

Fixed Assets ( Gross) 16.95 16.95 16.95 16.95 16.95

Gross Dep. 2.51 4.65 6.47 8.02 9.34
Net Fixed Assets 14.44 12.30 10.48 8.93 7.61

Current Assets
Sundry Debtors 4.95 6.13 7.22 8.37 9.58
Stock in Hand 5.47 7.93 9.24 10.62 12.05
Cash and Bank 2.04 0.52 0.99 1.37 1.26

TOTAL : 26.89 26.87 27.93 29.28 30.50

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 106.14 131.31 154.67 179.30 205.28

Total (A) 106.14 131.31 154.67 179.30 205.28

B) COST OF SALES

Raw Material Consumed 72.00 85.68 99.88 114.61 129.89

Elecricity Expenses 3.36 3.92 4.48 5.04 5.60
Repair & Maintenance 2.12 2.63 3.09 3.59 4.11
Labour & Wages 11.97 14.96 18.25 21.91 25.85
Depreciation 2.51 2.14 1.82 1.55 1.32
Cost of Production 91.96 109.32 127.52 146.69 166.76

Add: Opening Stock /WIP - 3.07 3.64 4.25 4.89

Less: Closing Stock /WIP 3.07 3.64 4.25 4.89 5.56

Cost of Sales (B) 88.90 108.75 126.92 146.05 166.09

C) GROSS PROFIT (A-B) 17.24 22.57 27.75 33.26 39.19

16.25% 17.19% 17.94% 18.55% 19.09%
D) Bank Interest i) (Term Loan ) 1.65 1.35 0.98 0.61 0.23
ii) Interest On Working Capital 0.68 0.68 0.68 0.68 0.68
E) Salary to Staff 7.31 9.21 10.87 13.80 16.28
F) Selling & Adm Expenses Exp. 1.91 3.28 4.64 5.02 6.16

G) TOTAL (D+E+F) 11.55 14.52 17.16 20.10 23.35

H) NET PROFIT 5.69 8.05 10.59 13.16 15.84

5.4% 6.1% 6.8% 7.3% 7.7%
I) Taxation 0.27 0.76 1.36 2.15 2.99

J) PROFIT (After Tax) 5.42 7.29 9.24 11.00 12.85

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.38 - - - -

Reserve & Surplus 5.69 8.05 10.59 13.16 15.84
Depriciation & Exp. W/off 2.51 2.14 1.82 1.55 1.32
Increase In Cash Credit 6.14 - - - -
Increase In Term Loan 15.26 - - - -
Increase in Creditors 3.60 0.68 0.71 0.74 0.76

TOTAL : 35.58 10.87 13.12 15.44 17.93

APPLICATION OF FUND

Increase in Fixed Assets 16.95 - - - -

Increase in Stock 5.47 2.46 1.32 1.38 1.43
Increase in Debtors 4.95 1.17 1.09 1.15 1.21
Repayment of Term Loan 1.70 3.39 3.39 3.39 3.39
Taxation 0.27 0.76 1.36 2.15 2.99
Drawings 4.20 4.60 5.50 7.00 9.00
TOTAL : 33.54 12.39 12.65 15.07 18.03

Opening Cash & Bank Balance - 2.04 0.52 0.99 1.37

Add : Surplus 2.04 - 1.52 0.47 0.37 - 0.10

Closing Cash & Bank Balance 2.04 0.52 0.99 1.37 1.26
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(10 Days requirement) 3.07 3.64 4.25 4.89 5.56
Raw Material
(10 Days requirement) 2.40 4.28 4.99 5.73 6.49

Closing Stock 5.47 7.93 9.24 10.62 12.05

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 5.47
Less:
Sundry Creditors 3.60
Paid Stock 1.87 0.19 1.68

Sundry Debtors 4.95 0.50 4.46

Working Capital Requirement 6.14

Margin 0.68

MPBF 6.14
Working Capital Demand 6.14
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 15.26 15.26 0.42 - 15.26
Iind Quarter 15.26 - 15.26 0.42 - 15.26
IIIrd Quarter 15.26 - 15.26 0.42 0.85 14.41
Ivth Quarter 14.41 - 14.41 0.40 0.85 13.56
1.65 1.70
II Opening Balance
Ist Quarter 13.56 - 13.56 0.37 0.85 12.71
Iind Quarter 12.71 - 12.71 0.35 0.85 11.87
IIIrd Quarter 11.87 - 11.87 0.33 0.85 11.02
Ivth Quarter 11.02 11.02 0.30 0.85 10.17
1.35 3.39
III Opening Balance
Ist Quarter 10.17 - 10.17 0.28 0.85 9.32
Iind Quarter 9.32 - 9.32 0.26 0.85 8.48
IIIrd Quarter 8.48 - 8.48 0.23 0.85 7.63
Ivth Quarter 7.63 7.63 0.21 0.85 6.78
0.98 3.39
IV Opening Balance
Ist Quarter 6.78 - 6.78 0.19 0.85 5.93
Iind Quarter 5.93 - 5.93 0.16 0.85 5.09
IIIrd Quarter 5.09 - 5.09 0.14 0.85 4.24
Ivth Quarter 4.24 4.24 0.12 0.85 3.39
0.61 3.39
V Opening Balance
Ist Quarter 3.39 - 3.39 0.09 0.85 2.54
Iind Quarter 2.54 - 2.54 0.07 0.85 1.70
IIIrd Quarter 1.70 - 1.70 0.05 0.85 0.85
Ivth Quarter 0.85 0.85 0.02 0.85 -
0.23 3.39

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R
PARTICULARS I II III IV V

CASH ACCRUALS 7.93 9.43 11.06 12.55 14.17

Interest on Term Loan 1.65 1.35 0.98 0.61 0.23

Total 9.59 10.78 12.04 13.16 14.40

REPAYMENT
Repayment of Term Loan 1.70 3.39 3.39 3.39 3.39
Interest on Term Loan 1.65 1.35 0.98 0.61 0.23

Total 3.35 4.74 4.37 4.00 3.62

DEBT SERVICE COVERAGE RATIO 2.86 2.27 2.76 3.29 3.98

AVERAGE D.S.C.R. 2.99

Assumptions:
1. Production Capacity of Baby Walker Manufacturing unit is taken at 200 Pcs per
day. First year, Capacity has been taken @ 30%.

2. Working shift of 10 hours per day has been considered.

3. Raw Material stock and Finished goods closing stock has been taken for 10
days.

4. Credit period to Sundry Debtors has been given for 14 days.

5. Credit period by the Sundry Creditors has been provided for 15 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 50 HP.

10. Selling Prices & Raw material costing has been increased by 3% & 2%
respectively in the subsequent years.
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
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reflect the views of the industry which are drawn from various research material
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considering specific requirement of the project, capacity and type of plant and
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