PROJECT REPORT

Of

STABLE BLEACHING POWDER

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Stable bleaching powder.

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
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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@[Link]
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 : STABLE BLEACHING POWDER

6 Name of the project / business activity proposed : STABLE BLEACHING POWDER UNIT

7 Cost of Project : Rs.25.56 Lakhs

8 Means of Finance
Term Loan Rs.18 Lakhs
Own Capital Rs.2.56 Lakhs
Working capital Rs.5 Lakhs

9 Debt Service Coverage Ratio : 2.01

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 44%

13 Employment : 8 Persons

14 Power Requirement : 20.00 HP

15 Major Raw materials : High grade Lime and Chlorine

16 Estimated Annual Sales Turnover (Max Capacity) : 104.07 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Building /Shed 800 Sq ft 3.00
Plant & Machinery 16.00
Furniture & Fixtures 1.00
Working Capital 5.56
Total 25.56

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.56

Working Capital(Finance) 5.00

Term Loan 18.00

Total 25.56
 STABLE BLEACHING POWDER

Introduction: Stable Bleaching Powder (Calcium Hypochlorite) is a widely

used chemical. It decomposes on contact with water, releasing chlorine at the
point of application. This makes it a strong oxidising, bleaching and
disinfecting agent. Bleaching powder is basically a bleaching agent. It finds
application as a bleaching agent in Textile Mills, Hand Looms and Power
Looms, Hosiery, Laundry, Paper, Soap and Silicate manufacturing and as
oxidizing agent in organic synthesis. It is not for Medicinal Use. Bleaching
powder also known as chlorinated lime is a yellowish-white powder easily
soluble in water. The chlorine content of bleaching powder varies from 35 –
40%. If temperature of lime kept between 30°C – 40°C bleaching powder with
available chlorine upto 40% is obtained. It is not hygroscopic, if kept under
40°[Link] is mainly used as a bleaching agent and as a disinfectant.

Uses & Market Potential: The major use of bleaching powder is in paper
industry, textile industry and oil industry. It is also used in all chemical
industry where bleaching is required. Disinfecting and deodorizing in food
processing, beverage and sugar industries. Calcium hypochlorite is extensively
used as a chlorine compound, which is highly effective against several
microorganisms such as algae, bacteria, fungi, slime and other harmful and
objectionable microorganisms which exist in the environment. Calcium
hypochlorite is one of the most widely used bleaching, sanitation and
disinfecting agent in the world. It is an integral component of bleaching
powder which also includes calcium chloride and slaked lime.

The principal consumers of bleaching powder are paper industries, textile

industries, oil installation, fertilizer units, tea gardens, PHE, railway, hospitals
and municipal corporations. It has been estimated that the requirement of
bleaching powder in entire N.E. Region is around 3500 MT per annum.

Raw Material: The two main raw materials required for the manufacturing
of bleaching powder are high grade lime and chlorine. Chlorine is available as
a by product during the electrolysis of brine. When lime is processed with
chlorine it has to be free from hydrogen to avoid explosions in the reaction
chamber. The lime quality used is utmost importance.

Machinery & equipments: Basic machines & equipments are as follows:

S No. Machine Unit Price
1. Chlorinator with separator, agitator 2 750000
2. Reduction gear box 2 200000
3. Slipring motor 2 150000
4. Chain & pulley block 1 250000
5. Lime storage tank 1 100000
6. Lime storage tank 2 100000
7. Vacuum pump with motor 2 50000
Total Amount 1600000

Manufacturing Process: The process of manufacture of bleaching

powder is as per Hasen Clever Process of manufacturing Bleaching Powder. In
this process there are cast iron cylinders operating in series with hydrated
lime and chlorine being fed counter current to each other. The cylinders are
provided with rotating blades and are arranged horizontally one above the
other the rotating blades act both as mixed and conveyors of the inside mass.
Hydrated lime is charged at one end of the top most cylinder while chlorine is
introduced at the other end of bottom most cylinder with the rotation of the
blades there is an intimate mixing of chlorine and lime with simultaneous
movement of slaked lime counter current to chlorine gas. The chlorinated lime
is discharged from the bottom cylinder and the un-reacted chlorine is
recovered from the top cylinder and recycled along with the fresh chlorine.
The bleaching powder discharged is stored in cast iron drums and wood
barrels. To increase the storage life it is mixed with quick lime to yield tropical
bleach containing 25% of available chlorine.

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 1000 to 1500Sqft. Civil work cost will be Rs 3
Lac (Approx.)

Power Requirement: The power consumption required to run all the

machinery could be approximated as 20hp

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 8 including 1
Supervisor, 1 Plant operator, 1 unskilled worker, 1 Helper and 1 Security
guard. 3 Skilled worker including Accountant, Manager and Sales person.
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

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.

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
Total time Required (some activities shall run 5-6 Months
concurrently)

FINANCIALS
PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.56 -

Reserve & Surplus 4.21 5.32 6.20 8.37 10.23
Depriciation & Exp. W/off 2.80 2.40 2.06 1.77 1.52
Increase In Cash Credit 5.00
Increase In Term Loan 18.00 - - - -
Increase in Creditors 0.82 0.11 0.07 0.07 0.07

TOTAL : 33.39 7.83 8.33 10.21 11.82

APPLICATION OF FUND

Increase in Fixed Assets 20.00 - - - -

Increase in Stock 4.62 0.60 0.54 0.56 0.57
Increase in Debtors 2.14 0.39 0.30 0.31 0.33
Repayment of Term Loan 2.00 4.00 4.00 4.00 4.00
Taxation - 0.53 0.62 0.84 1.02
Drawings 1.50 2.00 2.50 4.00 5.50

TOTAL : 30.26 7.52 7.96 9.71 11.43

Opening Cash & Bank Balance - 3.13 3.43 3.80 4.30

Add : Surplus 3.13 0.31 0.37 0.50 0.39

Closing Cash & Bank Balance 3.13 3.43 3.80 4.30 4.69
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 5.27 8.05 11.13 14.67
Add: Additions 2.56 - - - -
Add: Net Profit 4.21 4.79 5.58 7.53 9.21
Less: Drawings 1.50 2.00 2.50 4.00 5.50
Closing Balance 5.27 8.05 11.13 14.67 18.37
CC Limit 5.00 5.00 5.00 5.00 5.00
Term Loan 16.00 12.00 8.00 4.00 -
Sundry Creditors 0.82 0.93 1.00 1.07 1.15

TOTAL : 27.09 25.99 25.13 24.74 24.52

APPLICATION OF FUND

Fixed Assets ( Gross) 20.00 20.00 20.00 20.00 20.00

Gross Dep. 2.80 5.20 7.26 9.02 10.54
Net Fixed Assets 17.20 14.80 12.74 10.98 9.46

Current Assets
Sundry Debtors 2.14 2.53 2.82 3.14 3.47
Stock in Hand 4.62 5.23 5.76 6.32 6.89
Cash and Bank 3.13 3.43 3.80 4.30 4.69

TOTAL : 27.09 25.99 25.13 24.74 24.52

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 64.13 75.76 84.75 94.19 104.07

Total (A) 64.13 75.76 84.75 94.19 104.07

B) COST OF SALES

Raw Material Consumed 35.10 39.93 43.00 46.07 49.14

Elecricity Expenses 1.93 2.10 2.26 2.42 2.58
Repair & Maintenance 5.77 6.06 7.63 8.48 9.37
Labour & Wages 6.43 7.58 9.10 10.92 13.10
Depreciation 2.80 2.40 2.06 1.77 1.52

Cost of Production 52.03 58.07 64.04 69.65 75.70

Add: Opening Stock /WIP - 2.87 3.23 3.61 4.02

Less: Closing Stock /WIP 2.87 3.23 3.61 4.02 4.44

Cost of Sales (B) 49.16 57.70 63.66 69.25 75.28

C) GROSS PROFIT (A-B) 14.96 18.06 21.09 24.94 28.79

23.33% 23.83% 24.89% 26.48% 27.66%

D) Bank Interest (Term Loan ) 1.95 1.60 1.16 0.72 0.28

ii) Interest On Working Capital 0.55 0.55 0.55 0.55 0.55
E) Salary to Staff 5.04 6.05 7.26 8.71 10.45
F) Selling & Adm Expenses Exp. 3.21 4.55 5.93 6.59 7.29

TOTAL (D+E) 10.75 12.74 14.89 16.57 18.56

H) NET PROFIT 4.21 5.32 6.20 8.37 10.23

6.6% 7.0% 7.3% 8.9% 9.8%
I) Taxation - 0.53 0.62 0.84 1.02

J) PROFIT (After Tax) 4.21 4.79 5.58 7.53 9.21

COMPUTATION OF MAKING OF STABLE BLEACHING POWDER

Item to be Manufactured Stable Bleaching Powder

Manufacturing Capacity per day 1,500 Kg

No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum 4,50,000 Kg

Total Production per Annum 4,50,000 Kg
Year Capacity BLEACHING
Utilisation

I 60% 2,70,000.00

II 65% 2,92,500.00
III 70% 3,15,000.00
IV 75% 3,37,500.00
V 80% 3,60,000.00

COMPUTATION OF RAW MATERIAL

Quantity of Raw Total CostPer
Unit Unit Rate of
Item Name Material Annum (100%)
Slaked Lime 400.00 MT 4,000.00 16,00,000.00
Chlorine gas 200.00 MT 20,000.00 40,00,000.00
Packing material Lumsum 2,50,000.00

Total 58,50,000.00

Total Raw material in Rs lacs

58.50

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

I 60% 35.10
II 65% 39.93 5% Increase in Cost
III 70% 43.00 5% Increase in Cost
IV 75% 46.07 5% Increase in Cost
V 80% 49.14 5% Increase in Cost
COMPUTATION OF SALE
Particulars I II III IV V

Op Stock - 13,500.00 14,625.00 15,750.00 16,875.00

Production 2,70,000.00 2,92,500.00 3,15,000.00 3,37,500.00 3,60,000.00

2,70,000.00 3,06,000.00 3,29,625.00 3,53,250.00 3,76,875.00

Less : Closing Stock(15 Days) 13,500.00 14,625.00 15,750.00 16,875.00 18,000.00

Net Sale 2,56,500.00 2,91,375.00 3,13,875.00 3,36,375.00 3,58,875.00

Sale Price per Kg 25.00 26.00 27.00 28.00 29.00

Sale (in Lacs) 64.13 75.76 84.75 94.19 104.07

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15Days requirement) 2.87 3.23 3.61 4.02 4.44
Raw Material
(15 Days requirement) 1.76 2.00 2.15 2.30 2.46

Closing Stock 4.62 5.23 5.76 6.32 6.89

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 4.62
Less:
Sundry Creditors 0.82
Paid Stock 3.80 0.38 3.42

Sundry Debtors 2.14 0.21 1.92

Working Capital Requirement 5.35

Margin 0.59

MPBF 5.35
Working Capital Demand 5.00
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Supervisor 15,000.00 1 15,000.00
Plant Operator 12,000.00 1 12,000.00
Unskilled Worker 10,000.00 1 10,000.00
Helper 8,000.00 1 8,000.00
Security Guard 6,000.00 1 6,000.00

51,000.00
Add: 5% Fringe Benefit 2,550.00
Total Labour Cost Per Month 53,550.00
Total Labour Cost for the year ( In Rs. Lakhs) 5 6.43

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager 12,000.00 1 12,000.00
Accountant cum store keeper 16,000.00 1 16,000.00
Sales 12,000.00 1 12,000.00
Total Salary Per Month 40,000.00

Add: 5% Fringe Benefit 2,000.00

Total Salary for the month 42,000.00

Total Salary for the year ( In Rs. Lakhs) 3 5.04

COMPUTATION OF DEPRECIATION

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - -
Addition - 3.00 16.00 1.00 20.00
- 3.00 16.00 1.00 20.00
- - -
TOTAL 3.00 16.00 1.00 20.00
Less : Depreciation - 0.30 2.40 0.10 2.80
WDV at end of Ist year - 2.70 13.60 0.90 17.20
Additions During The Year - - - - -
- 2.70 13.60 0.90 17.20
Less : Depreciation - 0.27 2.04 0.09 2.40

WDV at end of IInd Year - 2.43 11.56 0.81 14.80

Additions During The Year - - - - -
- 2.43 11.56 0.81 14.80
Less : Depreciation - 0.24 1.73 0.08 2.06
WDV at end of IIIrd year - 2.19 9.83 0.73 12.74
Additions During The Year - - - - -
- 2.19 9.83 0.73 12.74
Less : Depreciation - 0.22 1.47 0.07 1.77
WDV at end of IV year - 1.97 8.35 0.66 10.98

Additions During The Year - - - - -

- 1.97 8.35 0.66 10.98
Less : Depreciation - 0.20 1.25 0.07 1.52
WDV at end of Vth year - 1.77 7.10 0.59 9.46
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 18.00 18.00 0.50 - 18.00
Iind Quarter 18.00 - 18.00 0.50 - 18.00
IIIrd Quarter 18.00 - 18.00 0.50 1.00 17.00
Ivth Quarter 17.00 - 17.00 0.47 1.00 16.00
1.95 2.00
II Opening Balance
Ist Quarter 16.00 - 16.00 0.44 1.00 15.00
Iind Quarter 15.00 - 15.00 0.41 1.00 14.00
IIIrd Quarter 14.00 - 14.00 0.39 1.00 13.00
Ivth Quarter 13.00 13.00 0.36 1.00 12.00
1.60 4.00
III Opening Balance
Ist Quarter 12.00 - 12.00 0.33 1.00 11.00

Iind Quarter 11.00 - 11.00 0.30 1.00 10.00

IIIrd Quarter 10.00 - 10.00 0.28 1.00 9.00
Ivth Quarter 9.00 9.00 0.25 1.00 8.00
1.16 4.00
IV Opening Balance
Ist Quarter 8.00 - 8.00 0.22 1.00 7.00
Iind Quarter 7.00 - 7.00 0.19 1.00 6.00
IIIrd Quarter 6.00 - 6.00 0.17 1.00 5.00
Ivth Quarter 5.00 5.00 0.14 1.00 4.00

0.72 4.00
V Opening Balance
Ist Quarter 4.00 - 4.00 0.11 1.00 3.00
Iind Quarter 3.00 - 3.00 0.08 1.00 2.00
IIIrd Quarter 2.00 - 2.00 0.06 1.00 1.00
Ivth Quarter 1.00 1.00 0.03 1.00 -
0.28 4.00

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 7.01 7.19 7.63 9.30 10.72

Interest on Term Loan 1.95 1.60 1.16 0.72 0.28

Total 8.97 8.78 8.79 10.02 11.00

REPAYMENT
Repayment of Term Loan 2.00 4.00 4.00 4.00 4.00
Interest on Term Loan 1.95 1.60 1.16 0.72 0.28

Total 3.95 5.60 5.16 4.72 4.28

DEBT SERVICE COVERAGE RATIO 2.27 1.57 1.70 2.12 2.57

AVERAGE D.S.C.R. 2.01

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 20
Load Factor 0.7460
Electricity Charges per unit 7.50
Total Working Days 300
Electricity Charges 2,68,560.00

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% 3.22

Year Capacity Amount

(in Lacs)

I 60% 1.93
II 65% 2.10
III 70% 2.26
IV 75% 2.42
V 80% 2.58
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
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