December 17, 2017

Sreekanth B

Wax Candles Business Full Project Report Guide

Wax Candles Business Full Project Report

I. INTRODUCTION:

Although it is an age of electrical illumination, light out of wax candles has got its charm and pleasure.

Wax candles in fact are daily house-hold necessity for a few occasional necessity for all including for
churches and others.



II. MARKET POTENTIAL

Candles are mass consumption items and are widely used for lighting and illumination in household,
churches and other religious places, hotels and restaurants etc. the demand for candles is increasing day by day due to its various usage’s. Artistic and decoration candles also have very good potential

III. BASIS AND PRESUMPTIONS:

The estimates are drawn for a production capacity generally considered techno-economically viable for model type of manufacturing activity.

The main raw material for the candles is paraffin wax and is a controlled item and the Directorate of
Industries of the state makes its allocation to the user. The other raw materials i.e stark acid, wick etc.
may be purchased from local market.

IV. IMPLEMENTATION SCHEDULE:

The product is very simple to manufacture just by using moulds. Hence 1-2 months is sufficient for
complete implementation of the project including the processing of moulds and raw materials.

V. TECHNICAL ASPECTS:

1.Process of Manufacturing:

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 ½ an hour, unscrew the plates of the moulds and take out the candles fro it and pack it in either number or weight.

2.Quality Specification :

As per customers requirements.

3.Production Capacity per annum

Quantity: 15 tones per annum

Value: Rs. 4,25,300

4.Motive Power : Only for lighting.

VI. TOTAL CAPITAL INVESTMENTS

S.No Description Value Rs.
1 Fixed Capital 27000
2 Working capital  50700
Total cost  77700

VII. MEANS OF FINANCE

1.Promoter's Contribution (5% of total cost) 3885

2.PMRY subsidy (15% of total cost or Rs.7500,whichever is less) 7500

3.Bank loan[total cost-( Promoter's Contribution+ PMRY subsidy) 66315

VIII. FINANCIAL ASPECTS

1. FIXED CAPITAL

i.Land & Buildings: Rented premises at a rent of Rs. 1000 pm.

ii Machinery & Equipment

S.No Description Quantity Value Rs.
1 Moulds of various sizes  20000
2 Wax Melting Vessels  2000
3 Stove for melting wax 2000
4 Common Balance 1000
5 Miscellaneous 2000
Total 27000

2. WORKING CAPITAL

i) Staff & Labour per month

S.No Designation No At Rs. Value Rs.
1 Supervisor 1 3000 3000
2 Semi-skilled worker 1 2000 2000
Total 5000

ii)Raw Material (p.m.)

S.No Description Quantity Value Rs.
1 Paraffin wax  1250 kg.  37500
2 Wicks 54 bundles  2000
3 Lubricating oil 500
4 Packing materials  1300 covers  1000
Total 41000

iii. Utilities per month

S.No Description Value Rs.
1 Power 500
2 Water 200
Total 700

iv. Other expenses per month

S.No Description Value Rs.
1 Conveyance, postage, telephone  1500
2 Printing , stationery, misc. expenses 1500
Total 3000

v. Total working capital per month

S.No Description Value Rs.
1 Rent 1000
2 Staff and labour 5000
3 Raw materials  41000
4 Utilities 700
5 Other expenses.  3000
Total 50700

IX. COST OF PRODUCTION PER ANNUM

S.No Description Value Rs.
1 Total working capital 608400
2 Depreciation 2000
3 Interest 11655
Total 622055

X. TURNOVER PER YEAR

S.No Item Quantity Rate Value Rs.
1 Wax Candles 15 MT  45 /MT  675000
Total 675000

XI. FIXED COST PER YEAR

S.No Description Value Rs.
1 Depreciation 2000
2 Interest 11655
3 Rent 12000
4 40% of salaries & wages  24000
5 40% of other expenses (utilities + OE)  17760
Total 67415


XII. PROFIT ANALYSIS

Net Profit : sale-total cost=675000-622055=52945

% of Profit on Sale: Profit / Sale x100 =52945/675000]100=7.84%

% of Return on Investment: Profit / (Investment) x 100=52945/77700]100=68.14

Break-Even Analysis : FC / (FC+Profit) x100=67415/67415+52945]100 =56%

XIII. MACHINERY SUPPLIERS

Local dealers and manufacturers.

| Wax Candles Business | MSME Projects | MSME Wax Candles Business Guide | Project Report On Wax Candles Business | MSME Work From Home Project Information On Wax Candles |

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