PROJECT REPORT

Of

PLASTIC MOULDED TOYS

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Plastic moulded toys.

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 : xxxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxxxxxxx
Mobile xxxxxxx

5 Product and By Product : PLASTIC MOULDED TOYS

6 Name of the project / business activity proposed : PLASTIC MOULDED TOYS UNIT

7 Cost of Project : Rs.24.83 Lakhs

8 Means of Finance
Term Loan Rs.19.35 Lakhs
Own Capital Rs.2.48 Lakhs
Working Capital Rs.3 Lakhs

9 Debt Service Coverage Ratio : 2.66

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 26%

13 Employment : 10 Persons

14 Power Requirement : 40.00 HP

15 Major Raw materials : HDPE Granules, Colour & pigments, Packing material

16 Estimated Annual Sales Turnover (Max Capacity) : 172.56 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Building /Shed 500 Sq ft 2.00
Plant & Machinery 18.00
Furniture & Fixtures 1.50
Working Capital 3.33
Total 24.83

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.48

Working Capital(Finance) 3.00

Term Loan 19.35

Total 24.83
 PLASTIC MOULDED TOYS

Introduction: A plastic toy is an item that is used to play, especially one

designed for such use. Playing with toys can be an enjoyable means of training
children for life in society. Different materials like wood, clay, paper, and
plastic are used to make toys. Most of the Indian Toy industry operates
through an extensive distribution network in the domestic markets. Big
retailers / Large Format Stores such as Big Bazaar, Wall-Mart, etc. However,
they also operate on the existing Volume based business model, making price
the most sensitive aspect.

Designing of toys: Plastic Toy factories need the work of designers. Clients
and toy company employees have a brainstorming session and, after that,
designers need to prepare sketches of the toy in question. They include the
size, colors, and facial expressions and poses, according to the type of toy (it
can be a figurine, a doll, a car or some plastic article. After the wax model is
finished, engineers will determine whether the toy should be manufactured in
just one piece or in many of them. To manufacture certain toys, some plastic
pieces require other processes, such as tampography, also called pad-printing.
This technique transfers a 2-D image into a 3-D object and it allows details like
an expressive face to be applied to the plastic piece, think of the Lego, Mega
Bloks, Miniland or Playmobile plastic toys with their eyes and smiles.

Advantages of Plastic moulded toys: Plastic toys are far more durable
than wooden toys and can be bent, twisted and quite often stamped on before
any serious damage happens to them. Of course, it’s always best to instill a
certain amount of respect for toys in your children, but at least plastic toys can
stand up to a bit of rough play. Another bonus of plastic toys over some
materials, such as wood, are that plastic toys are washable toys. If the little
darlings come in from the garden covered in mud or other delights, you can
simply wipe their toys clean while you dunk them in the bath to clean up.
There’s no need, as with fabric toys, to even put them through a wash in the
machine, all it takes is a damp cloth and the toys are as good as new.

Plastic Moulded Toys Market analysis: The existence of toys in India

dates back to the Indus Valley Civilization around five thousand years ago.
Driven by a huge consumer base, India represents an important market for
plastic toys as well. There are a large variety of toys currently available in the
market. The diverse product category ranges from traditional plush toys,
construction and building toys, dolls, board games and puzzles to high-end
electronic toys, educational toys, ride-ons, etc. There are toys which are
domestically produced by small, medium and large manufactures and also
those that are produced from renowned international brands. Each toy
category has inexpensive and high-end versions.
Machines & equipments: Basic machinery requirements are:
1. Blow moulding machine
2. Ultrasonic welding machine
3. Printing machine
4. Tools & dies

Cost of Machines:
S No. Machine Unit Price
1. Blow moulding machine 1 1200000
2. Ultrasonic welding machine 1 300000
3. Printing machine 1 250000
4. Tools & dies 50000

Raw material: Basic raw material requirements are:

1. HDPE Granules(60-40 Rs/kg)
2. Colours & pigments(100-140 Rs/kg)
3. Packing material

Manufacturing Process:
 First of all, HDPE granules put into the hopper of blow moulding
machine, after that raw material through screw barrier shifts towards
heater and convert into plastic paste.
 After that we can add colour into the paste as per the requirement
(with the help of master patch, it is used to give colour to plastic paste).
 Next In the blow moulding process, the raw plastic material is shaped
into a hollow tube with one open end called a parison. The parison is
pressed into a cooled metal mould and compressed air is forced into the
 parison. When the formed plastic cools down and hardens the metal
mould opens and expels the product.
 After finishing of plastic toys they are sent to printing section to create
different prints and design on toys & then with the ultrasonic welding
machine toys are joined together and assembled.
 Packaging of toys and left over material is sent to crushing section for re
processing.

Product Types: This project report is prepared on toys ranging from Rs.5-
50 Per toys. And 1 litre Double station Blow Moulding machine.

S No. Particulars Selling Price Raw material cost

1. 5 Rs. Toy 5 2
2. 15 Rs. Toy 15 8
3. 30 Rs. Toy 30 16
4. 40 Rs. Toy 40 24
5. 50 Rs. Toy 50 28

Average selling price is taken as 24 Rs. and raw material cost 13 Rs.

Area:

The industrial setup requires space for Inventory, workshop or manufacturing

area, space for power supply utilities and auxiliary like Generator setup. Also
some of the area of building is required for office staff facilities,
documentation, office furniture, etc. Thus, the approximate total area required
for complete industrial setup is 800 to 1000Sqft. Civil work will cost around 2
Lac (approx.)

Power Requirement –The power consumption required to run all the

machinery could be approximated as 40 hp.
Manpower Requirement– There are requirement of skilled machine
operators to run the machine set. Experience quality engineers are required
for desired quality control. Some helpers are also required to transfer the
material from one work station to other. Office staffs are required to maintain
the documentation. The approximate manpower required is 10 including 1
Supervisor, 2 Plant operator, 1 unskilled worker, 2 Helper and 1 security
Guard. 3 Skilled worker including Accountant, Manager and sales personal
each.

Approvals & Registration Requirement:

Basic registration required in this project:

 GST Registration
 Udyog Aadhar Registration (Optional)
 Choice of a Brand Name of the product and secure the name with
Trademark if require

Bank Term Loan: Rate of Interest is assumed to be at 11%

Depreciation: Depreciation has been calculated as per the Provisions of

Income Tax Act, 1961

Implementation Schedule:
S No. Activity Time required
1. Acquisition of premises 1-2 Months
2. Procurement & installation of Plant & Machinery 1-2 Months
3. Arrangement of Finance 1.5-2 Months
4. Requirement of required Manpower 1 Month
5. Commercial Trial Runs 1 Month

FINANCIALS
PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.48 -

Reserve & Surplus 4.64 8.55 12.05 17.15 21.10
Depriciation & Exp. W/off 3.05 2.61 2.23 1.91 1.64
Increase In Cash Credit 3.00
Increase In Term Loan 19.35 - - - -
Increase in Creditors 1.56 0.33 0.36 0.39 0.42

TOTAL : 34.08 11.49 14.65 19.45 23.16

APPLICATION OF FUND

Increase in Fixed Assets 21.50 - - - -

Increase in Stock 2.00 0.43 0.47 0.51 0.55
Increase in Debtors 2.83 0.67 0.69 0.75 0.81
Repayment of Term Loan 2.15 4.30 4.30 4.30 4.30
Taxation - 0.86 1.81 4.29 6.33
Drawings 4.00 5.00 7.00 8.00 9.00
TOTAL : 32.49 11.26 14.27 17.85 20.99

Opening Cash & Bank Balance - 1.60 1.83 2.21 3.81

Add : Surplus 1.60 0.23 0.38 1.60 2.17

Closing Cash & Bank Balance 1.60 1.83 2.21 3.81 5.97
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 3.12 5.82 9.06 13.92
Add: Additions 2.48 - - - -
Add: Net Profit 4.64 7.70 10.24 12.86 14.77
Less: Drawings 4.00 5.00 7.00 8.00 9.00
Closing Balance 3.12 5.82 9.06 13.92 19.70
CC Limit 3.00 3.00 3.00 3.00 3.00
Term Loan 17.20 12.90 8.60 4.30 -
Sundry Creditors 1.56 1.89 2.25 2.64 3.06

TOTAL : 24.88 23.61 22.91 23.86 25.76

APPLICATION OF FUND

Fixed Assets ( Gross) 21.50 21.50 21.50 21.50 21.50

Gross Dep. 3.05 5.66 7.89 9.81 11.45
Net Fixed Assets 18.45 15.84 13.61 11.69 10.05

Current Assets
Sundry Debtors 2.83 3.50 4.19 4.94 5.75
Stock in Hand 2.00 2.44 2.91 3.42 3.98
Cash and Bank 1.60 1.83 2.21 3.81 5.97

24.88 23.61 22.91 23.86 25.76

TOTAL :

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 84.96 105.11 125.79 148.28 172.56

Total (A) 84.96 105.11 125.79 148.28 172.56

B) COST OF SALES

Raw Material Consumed 46.80 56.70 67.50 79.20 91.80

Elecricity Expenses 2.36 2.66 2.95 3.25 3.55
Repair & Maintenance 8.50 11.25 13.84 16.31 18.98
Labour & Wages 9.83 11.01 12.22 13.68 15.33
Depreciation 3.05 2.61 2.23 1.91 1.64

Cost of Production 70.54 84.22 98.74 114.36 131.29

Add: Opening Stock /WIP - 0.33 1.49 1.79 2.10

Less: Closing Stock /WIP 0.33 1.49 1.79 2.10 2.45

Cost of Sales (B) 70.21 83.06 98.45 114.04 130.95

C) GROSS PROFIT (A-B) 14.75 22.04 27.34 34.24 41.61

17.36% 20.97% 21.73% 23.09% 24.11%
D) Bank Interest (Term Loan ) 2.10 1.71 1.24 0.77 0.30
ii) Interest On Working Capital 0.33 0.33 0.33 0.33 0.33
E) Salary to Staff 4.28 5.14 6.17 7.09 7.80
F) Selling & Adm Expenses Exp. 3.40 6.31 7.55 8.90 12.08

TOTAL (D+E) 10.11 13.49 15.29 17.09 20.51

H) NET PROFIT 4.64 8.55 12.05 17.15 21.10

5.5% 8.1% 9.6% 11.6% 12.2%
I) Taxation - 0.86 1.81 4.29 6.33

J) PROFIT (After Tax) 4.64 7.70 10.24 12.86 14.77

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

I 40% 46.80
II 45% 56.70
III 50% 67.50
IV 55% 79.20
V 60% 91.80
COMPUTATION OF SALE
Particulars I II III IV V

Op Stock - 6,000.00 6,750.00 7,500.00 8,250.00

Production 3,60,000.00 4,05,000.00 4,50,000.00 4,95,000.00 5,40,000.00

3,60,000.00 4,11,000.00 4,56,750.00 5,02,500.00 5,48,250.00

Less : Closing Stock(5 Days) 6,000.00 6,750.00 7,500.00 8,250.00 9,000.00

Net Sale 3,54,000.00 4,04,250.00 4,49,250.00 4,94,250.00 5,39,250.00

Sale Price per toys 24.00 26.00 28.00 30.00 32.00

Sale (in Lacs) 84.96 105.11 125.79 148.28 172.56

COMPUTATION OF MAKING OF TOYS

Item to be Manufactured Toys

Manufacturing Capacity per day 3000 Toys

No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum 9,00,000 Toys

Total Production per Annum 9,00,000 Toys
PLASTIC MOULDED
Year Capacity TOYS
Utilisation

I 40% 3,60,000.00
II 45% 4,05,000.00
III 50% 4,50,000.00
IV 55% 4,95,000.00
V 60% 5,40,000.00
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(5 Days requirement) 1.22 1.49 1.79 2.10 2.45
Raw Material
(5 Days requirement) 0.78 0.95 1.13 1.32 1.53

Closing Stock 2.00 2.44 2.91 3.42 3.98

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 2.00
Less:
Sundry Creditors 1.56
Paid Stock 0.44 0.04 0.40

Sundry Debtors 2.83 0.28 2.55

Working Capital Requirement 2.95

Margin 0.33

MPBF 2.95
Working Capital Demand 3.00
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Supervisor 18,000.00 1 18,000.00
Plant Operator 15,000.00 2 30,000.00
Unskilled Worker 8,000.00 1 8,000.00
Helper 8,000.00 2 16,000.00
Security Guard 6,000.00 1 6,000.00

78,000.00
Add: 5% Fringe Benefit 3,900.00
Total Labour Cost Per Month 81,900.00
Total Labour Cost for the year ( In Rs. Lakhs) 7 9.83

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager 15,000.00 1 12,000.00
Accountant cum store keeper 12,000.00 1 12,000.00
Sales 10,000.00 1 10,000.00
Total Salary Per Month 34,000.00

Add: 5% Fringe Benefit 1,700.00

Total Salary for the month 35,700.00

Total Salary for the year ( In Rs. Lakhs) 3 4.28

COMPUTATION OF DEPRECIATION

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - -
Addition - 2.00 18.00 1.50 21.50
- 2.00 18.00 1.50 21.50
- - -
TOTAL 2.00 18.00 1.50 21.50
Less : Depreciation - 0.20 2.70 0.15 3.05
WDV at end of Ist year - 1.80 15.30 1.35 18.45
Additions During The Year - - - - -
- 1.80 15.30 1.35 18.45
Less : Depreciation - 0.18 2.30 0.14 2.61

WDV at end of IInd Year - 1.62 13.01 1.22 15.84

Additions During The Year - - - - -
- 1.62 13.01 1.22 15.84
Less : Depreciation - 0.16 1.95 0.12 2.23
WDV at end of IIIrd year - 1.46 11.05 1.09 13.61
Additions During The Year - - - - -
- 1.46 11.05 1.09 13.61
Less : Depreciation - 0.15 1.66 0.11 1.91
WDV at end of IV year - 1.31 9.40 0.98 11.69
Additions During The Year - - - - -
- 1.31 9.40 0.98 11.69
Less : Depreciation - 0.13 1.41 0.10 1.64
WDV at end of Vth year - 1.18 7.99 0.89 10.05
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter 19.35 - 19.35 0.53 - 19.35
Iind Quarter 19.35 - 19.35 0.53 - 19.35
IIIrd Quarter 19.35 - 19.35 0.53 1.08 18.28
Ivth Quarter 18.28 - 18.28 0.50 1.08 17.20
2.10 2.15
II Opening Balance
Ist Quarter 17.20 - 17.20 0.47 1.08 16.13
Iind Quarter 16.13 - 16.13 0.44 1.08 15.05
IIIrd Quarter 15.05 - 15.05 0.41 1.08 13.98
Ivth Quarter 13.98 13.98 0.38 1.08 12.90
1.71 4.30
III Opening Balance
Ist Quarter 12.90 - 12.90 0.35 1.08 11.83

Iind Quarter 11.83 - 11.83 0.33 1.08 10.75

IIIrd Quarter 10.75 - 10.75 0.30 1.08 9.68
Ivth Quarter 9.68 9.68 0.27 1.08 8.60
1.24 4.30
IV Opening Balance
Ist Quarter 8.60 - 8.60 0.24 1.08 7.53
Iind Quarter 7.53 - 7.53 0.21 1.08 6.45
IIIrd Quarter 6.45 - 6.45 0.18 1.08 5.38
Ivth Quarter 5.38 5.38 0.15 1.08 4.30
0.77 4.30
V Opening Balance
Ist Quarter 4.30 - 4.30 0.12 1.08 3.23
Iind Quarter 3.23 - 3.23 0.09 1.08 2.15
IIIrd Quarter 2.15 - 2.15 0.06 1.08 1.08

Ivth Quarter 1.08 1.08 0.03 1.08 0.00

0.30 4.30

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 7.69 10.31 12.48 14.77 16.41

Interest on Term Loan 2.10 1.71 1.24 0.77 0.30

Total 9.79 12.02 13.72 15.54 16.71

REPAYMENT
Repayment of Term Loan 2.15 4.30 4.30 4.30 4.30
Interest on Term Loan 2.10 1.71 1.24 0.77 0.30

Total 4.25 6.01 5.54 5.07 4.60

DEBT SERVICE COVERAGE RATIO 2.30 2.00 2.48 3.07 3.64

AVERAGE D.S.C.R. 2.66

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 40
Load Factor 0.7460
Electricity Charges per unit 7.50
Total Working Days 300
Electricity Charges 5,37,120.00

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
No of Working Hours 0.3 Hour per day
Total no of Hour 90
Diesel Consumption per Hour 8
Total Consumption of Diesel 720
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 0.47

Add : Lube Cost @15% 0.07

Total 0.54

Total cost of Power & Fuel at 100% 5.91

Year Capacity Amount

(in Lacs)

I 40% 2.36
II 45% 2.66
III 50% 2.95
IV 55% 3.25
V 60% 3.55
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
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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intended for general guidance only and must not be considered a substitute for a
competent legal advice provided by a licensed industry professional. SAMADHAN
hereby disclaims any and all liability to any party for any direct, indirect, implied,
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