PROJECT REPORT

Of

CERAMIC SANITARYWARE
WASHBASIN

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Ceramic sanitaryware washbasin 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@[Link]
Contact : +91 7526000333, 444, 555
 PROJECT AT GLANCE

1 Name of Proprietor/Director XXXXXXXX

2 Firm Name XXXXXXXX
3 Registered Address XXXXXXXX
4 Nature of Activity XXXXXXXX
5 Category of Applicant XXXXXXXX
6 Location of Unit XXXXXXXX
7 Cost of Project 15.74 Rs. In Lakhs
8 Means of Finance
i) Own Contribution 1.57 Rs. In Lakhs
ii) Term Loan 10.28 Rs. In Lakhs
iii) Working Capital 3.89 Rs. In Lakhs
9 Debt Service Coverage Ratio 2.92
10 Break Even Point 41%
11 Power Requiremnet 10 KW
12 Employment 18 Persons
China clay, ball clay/fire
clay, felsar powder,plaster
13 Major Raw Materials of paris,other colours and
chemicals and packaging
material
14 Details of Cost of Project & Means of Finance

Cost of Project Amount in Lacs

Particulars Amount
Land and building Owned/Leased
Plant & Machinery 9.92
Furniture & Fixture -
Other Misc Assets 1.50
Working Capital Requirement 4.32
Total 15.74
Means of Finance
Particulars Amount
Own Contribution 1.57
Term Loan 10.28
Working capital Loan 3.89
Total 15.74
 1. INTRODUCTION

The ceramic sanitary wares are used for sanitation purposes and the product ranges from
washbasins, closets, urinals, sinks, baths to hoppers. It has properties like very good resistance to
weathering, chemical erosion, mechanical strength and resistance to abrasion. Today sanitary
wares are made from variety of materials each of them having certain advantages over the others.
However, sanitary wares made of ceramic have many advantages over those made of other
materials and are economical also. It has a wide acceptance in the society. Because of its good
properties like good corrosion resistance, good abrasion resistance, glazy surface with different
appealing colors, the use of sanitary ware for sanitation purpose has not yet been remarkably
replaced by other materials like steel, fiber etc. Its use in sanitation has preference over other
materials. In near future also the chance for replacing these items by other materials looks very
black. They are economical, easy-to-clean, longer life and are available in pleasing colors. The
ceramic sanitary wares are rather cheap, easy to clean and are available of various colors.
 2. PRODUCT DESCRIPTION

2.1 PRODUCT USES

Ceramic Sanitary wares are used for sanitation purposes. Sanitary ware products range from Wash
Basins, Closets, Urinals, Sinks, Baths tubs etc. The ceramic sanitary wares are rather cheap, easy
to clean.
2.2 MANUFACTURING PROCESS

For body making the raw materials like china clays, fire clay, ball clay, quartz, feldspar etc. are
mixed with water and ground thoroughly to get a uniform slip. They are unloaded in an agitator.
The slip is screened, magnetic separated and kept in an agitating tank with addition of required
flocculants. The wares are cast in plaster moulds. The cast wares are hard felted and kept on open
racks or benches for drying. The dried wares are tested for cracks and then finished. On the other
hand glaze is prepared in similar way by ball milling, screening and magnetic separation and then
the glaze is used in spray booth to apply on the finished dry body products and the glazed body is
sent for drying & then firing. After firing the fired products are sorted out and packed for sale.

Slip preparation For Body

Casting with Plaster Mould

Drying

Glaze application

Drying

Firing

Sorting & Packing

3. PROJECT COMPONENTS

3.1 Land & Building

The industrial setup requires space for Inventory, workshop or manufacturing area, space for
power supply utilities and stitching and polishing area. 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 small scale factory setup is 5500 Sq. ft. approximate.
 Workshop Area- This area includes the machinery setup and foundation space for all
equipments, work floor area, Processing zone, Conveyor Area, Glazing Bay, Kiln area. Total
workshop area is approx. 4000 Sqft.

 Inventory Area- This area includes the storage space for all the raw materials, finished goods
area. Total inventory area is approx. 1000 Sqft.

 Office Area – This space includes staff working region, their accommodation space, canteen
area, medical facility etc. Total workshop area is approx. 300Sqft. This may be considered
above the ground floor.

 Parking Space, Electricity Utensils Mounting Space, and Others. This could be approx.
200Sqft.
Land and building requirement may vary depending on the size of project .

3.2 Plant & Machinery

 Ball mill with porcelain lining and grinding media

 Agitator.
 

 Slurry pump:

 Magnetic separator

 Spray booths complete with air compressor spray guns etc:

 Ceramic fiber lined, shuttle kilns, oil fired:

  Oil storage tank and pre heating system


Other Equipments

 Testing Laboratory equipments and apparatus

 Drying racks and working table, slurry container etc
Note: Total Machinery cost shall be Rs 9.92 lakh excluding GST and Transportation Cost.

4. LICENSE & APPROVALS

Basic registration required in this project:

 MSME Udyam registration

 GST registration

 NOC for fire safety board

 NOC from Pollution Control Board

 Trade License

 Factory License

 Import/Export License

 Choice of a Brand Name of the product and secure the name with Trademark if required .
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 2.10 3.31 4.83 6.72
Add: Additions 1.57 - - - -
Add: Net Profit 2.92 4.22 6.02 8.10 8.93
Less: Drawings 2.40 3.00 4.50 6.20 6.90
Closing Balance 2.10 3.31 4.83 6.72 8.76
CC Limit 3.89 3.89 3.89 3.89 3.89
Term Loan 9.14 6.85 4.57 2.28 -
Sundry Creditors 0.86 0.96 1.07 1.18 1.30

TOTAL : 15.99 15.02 14.36 14.08 13.95

APPLICATION OF FUND

Fixed Assets ( Gross) 11.42 11.42 11.42 11.42 11.42

Gross Dep. 1.64 3.04 4.23 5.26 6.13
Net Fixed Assets 9.78 8.38 7.19 6.16 5.29

Current Assets
Sundry Debtors 2.13 2.49 2.80 3.12 3.46
Stock in Hand 3.06 3.46 3.87 4.31 4.77
Cash and Bank 1.02 0.69 0.50 0.49 0.43

TOTAL : 15.99 15.02 14.36 14.08 13.95

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 63.80 74.62 83.86 93.67 103.91

Total (A) 63.80 74.62 83.86 93.67 103.91

B) COST OF SALES

Raw Material Consumed 25.80 28.91 32.11 35.41 38.98

Elecricity Expenses 3.36 3.69 4.03 4.36 4.70
Repair & Maintenance 2.23 2.61 2.94 3.28 3.64
Labour & Wages 16.88 19.25 21.56 24.79 27.77
Depreciation 1.64 1.40 1.20 1.02 0.88
Cost of Production 49.91 55.86 61.83 68.87 75.95

Add: Opening Stock /WIP - 2.20 2.49 2.80 3.13

Less: Closing Stock /WIP 2.20 2.49 2.80 3.13 3.47

Cost of Sales (B) 47.71 55.57 61.52 68.54 75.61

C) GROSS PROFIT (A-B) 16.09 19.05 22.34 25.13 28.30

25.22% 25.53% 26.64% 26.83% 27.23%
D) Bank Interest i) (Term Loan ) 1.11 0.91 0.66 0.41 0.16
ii) Interest On Working Capital 0.43 0.43 0.43 0.43 0.43
E) Salary to Staff 9.07 10.89 12.30 12.92 13.95
F) Selling & Adm Expenses Exp. 2.55 2.61 2.94 3.28 3.64

TOTAL (D+E+F) 13.17 14.84 16.32 17.03 18.17

H) NET PROFIT 2.92 4.22 6.02 8.10 10.13

4.6% 5.6% 7.2% 8.6% 9.7%
I) Taxation - - - - 1.20

J) PROFIT (After Tax) 2.92 4.22 6.02 8.10 8.93

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 1.57 -

Reserve & Surplus 2.92 4.22 6.02 8.10 10.13
Depriciation & Exp. W/off 1.64 1.40 1.20 1.02 0.88
Increase In Cash Credit 3.89
Increase In Term Loan 10.28 - - - -
Increase in Creditors 0.86 0.10 0.11 0.11 0.12

TOTAL : 21.17 5.72 7.32 9.23 11.12

APPLICATION OF FUND

Increase in Fixed Assets 11.42 - - - -

Increase in Stock 3.06 0.40 0.42 0.44 0.46
Increase in Debtors 2.13 0.36 0.31 0.33 0.34
Repayment of Term Loan 1.14 2.28 2.28 2.28 2.28
Taxation - - - - 1.20
Drawings 2.40 3.00 4.50 6.20 6.90
TOTAL : 20.15 6.04 7.51 9.25 11.18

Opening Cash & Bank Balance - 1.02 0.69 0.50 0.49

Add : Surplus 1.02 - 0.32 - 0.19 - 0.02 - 0.06

Closing Cash & Bank Balance 1.02 0.69 0.50 0.49 0.43
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 10.28 10.28 0.28 - 10.28
Iind Quarter 10.28 - 10.28 0.28 - 10.28
IIIrd Quarter 10.28 - 10.28 0.28 0.57 9.71
Ivth Quarter 9.71 - 9.71 0.27 0.57 9.14
1.11 1.14
II Opening Balance
Ist Quarter 9.14 - 9.14 0.25 0.57 8.57
Iind Quarter 8.57 - 8.57 0.24 0.57 7.99
IIIrd Quarter 7.99 - 7.99 0.22 0.57 7.42
Ivth Quarter 7.42 7.42 0.20 0.57 6.85
0.91 2.28
III Opening Balance
Ist Quarter 6.85 - 6.85 0.19 0.57 6.28
Iind Quarter 6.28 - 6.28 0.17 0.57 5.71
IIIrd Quarter 5.71 - 5.71 0.16 0.57 5.14
Ivth Quarter 5.14 5.14 0.14 0.57 4.57
0.66 2.28
IV Opening Balance
Ist Quarter 4.57 - 4.57 0.13 0.57 4.00
Iind Quarter 4.00 - 4.00 0.11 0.57 3.43
IIIrd Quarter 3.43 - 3.43 0.09 0.57 2.86
Ivth Quarter 2.86 2.86 0.08 0.57 2.28
0.41 2.28
V Opening Balance
Ist Quarter 2.28 - 2.28 0.06 0.57 1.71
Iind Quarter 1.71 - 1.71 0.05 0.57 1.14
IIIrd Quarter 1.14 - 1.14 0.03 0.57 0.57
Ivth Quarter 0.57 0.57 0.02 0.57 0.00
0.16 2.28

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 4.56 5.61 7.21 9.12 9.81

Interest on Term Loan 1.11 0.91 0.66 0.41 0.16

Total 5.67 6.53 7.87 9.53 9.96

REPAYMENT
Repayment of Term Loan 1.14 2.28 2.28 2.28 2.28
Interest on Term Loan 1.11 0.91 0.66 0.41 0.16

Total 2.26 3.19 2.94 2.69 2.44

DEBT SERVICE COVERAGE R 2.51 2.04 2.67 3.54 4.08

AVERAGE D.S.C.R. 2.92

 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
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