PROJECT IDENTIFICATION AND SELECTION
Entrepreneurship is one of the critical decisions to be made. It involves number of risk and has its own advantages also. If you are thinking about starting a business of your own, you would need to take your time and not rush things. Though it is very exciting to start your very own business, you should take it slowly since you need to consider a lot of important aspects that could affect your business. There are several factors that, if taken for granted or overlooked, could spell the difference between success and failure. Taking your time in setting up all the things you need is very important especially if it would be your first time.
First of all, you need to think about the type of business that you are going to set up. It is good if you are already decided on what business you would put up but if not you need to choose one that you are comfortable with. A simple business plan would be a great help when you are starting out. If you do not know how to make one, you can hire the services of marketing experts or firms to design one for you. If you do not have a big budget, you can make use of templates.
Next thing you have to consider is manpower. Determine how much manpower you would need. Even a simple online business needs manpower and it would be ideal to have the different aspects of your business looked after by different persons. Though you may have the knowledge on how to run your entire operation, it would be more efficient if you don't do everything on your own. Along with manpower is their salary. You also need to consider how many people you can afford to work for you. Make necessary adjustments depending on your budget.
Another important factor to consider is the materials you would need for your business. If you will be running an online business, the equivalent of physical materials would be a main website, its content, graphics, etc. When purchasing your materials or have someone create your website, it would be best to compare different sellers or service provides first. This is for you to get the most out of your budget. You need to save as much money as you can since you are just starting out.
The last thing you need to think about would be your product or service that you would sell. Make sure that your product or service is of high quality. Put yourself in the shoes of your customers and ask yourself if you will buy that product or employ that type of service that you are selling. It is always a great idea to see things at a customer's viewpoint. This would help you identify what your customers really want and determine how to keep them happy or satisfied. The ultimate goal of any business is to give their customers what they want. Ensure that you understand all these important things that you have to consider and start taking actions.
Important Factors to Identify a Project
Following factors are important to consider starting a new business. Compromising any of these factors could hamper the growth. Starting a business these days is very challenging and an all round knowledge of various factors is required to run a successful one.
u Knowledge/Expertise
Any business requires some amount of basic knowledge and experience. The owner needs to be aware about the business he intends to start. Knowledge and expertise about the product or service are keys to a successful business. In case of limited knowledge the owner may not be able to sustain the business and can be fooled by the vendors, suppliers and competitors.
Expert knowledge is especially required if the field of business is a niche field. For instance the construction or software industry would require more knowledge as against a retail business selling a particular brand of clothes or shoes.
u Research
Researching in and around your industry is mandatory. Once a decision is taken on the business you intend to start, the next step is to explore the demand/market for the product / service. Certain products will only have a domestic market for them whereas others can be successful on an international level. The concept of research is misunderstood by many. While researching people focus on various strategies to be used losing sight of their competitors. Though the idea of a business is to sell products there is no reason to underestimate your competitors. Know the strategies being employed by your competitors and then create a strategy to beat them. Researching the market in this manner will save time and energy.
If the product/service is expected to be sold locally, the demand for it needs to be assessed. In case an international market is expected then rules and regulations for dealing internationally need to be found out.
Market Research
It can be defined as the process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face.
Reaching Consumers
Marketing is dynamic in nature and has gone through many faces in the past decade. A marketing strategy should be well prepared and executed before launching your business. You need to have sound knowledge in marketing to come up with an idea that will reach your hungry crowd. To be short and precise, businesses should reach consumers. Of course I do not advice knocking on every consumer's door. But creating a portal that could provide ease in reaching your customers would be of value.
Sought After Product/Service
Make sure that the product or service you are trying to sell is much sought after. Though there are buyers for everything, unless a product/service is in demand you will eventually lose. Make sure that the demand increases or create a demand for your product/service. Demand for a product/service can be created if it caters and satisfies people on a larger scale.
u Total Project Costs
It is important to correctly assess the total project cost required to set up and run the business successfully.
In a capital intensive business such as starting a manufacturing plant, the start up costs can be very high. You need to identify the total amount which will be spent on the land & building, plant & machinery, furniture and office equipment, vehicles etc.If a business is in the nature of retail you will need to identify the cost of the store and furniture. Amount required for the decoration of the store needs to be assessed. Similarly in case of an office the major cost will be for the furniture and office equipment. An office or firm can be started at a relatively lower cost initially with only the basic requirements.
One also needs to take care of the working capital requirement. This will mainly consist of the inventory which needs to be maintained and the credit which is extended to the customers. From this the supplier's credit is deducted to arrive at the Working Capital Requirement. The Working Capital Requirement can be quite high for certain industries for example inventory will need to be maintained in a garment store. Similarly in case of a grocery shop there is need for huge inventory for which credit may not be given initially by the suppliers.
u Financing/Capital
After identifying the initial costs required for starting the business, the financing pattern will need to be decided. The financing pattern will be mainly by way of capital introduction by the owner and borrowed funds.
Depending on how much capital the owner can introduce the balance amount will need to be borrowed. Funds borrowed will be either short term loans or long term loans. The terms and conditions for borrowing funds will need to be studied such as the cost of borrowing, security required, rate of interest and the repayment terms. The owner will need to approach a number of banks to get information about their terms of lending and draw a comparative analysis to identify which funding is the most beneficial for him.
As a thumb rule short term funds should not be utilized for the purchase of fixed assets. Short term funds are mainly used to meet the working capital requirement. The logic is that if short term funds are used to purchase fixed assets how are you going to repay the short term loan if the business has not progressed.
Once the financing pattern is identified the owner will need to decide how the money is going to be utilized. The financial plans of an enterprise should be formulated by taking into consideration the following factors:-
The financial objectives of the company
H Nature and size of the business
H The image and credit-worthiness of the enterprise
H Growth and expansion plans
H Capital market trends
H Government regulations
u Competition
Before entering new business, information about market competition needs to be found out. In case a product is a monopoly then the competition will not matter. Otherwise the success of the business will depend upon the demand and supply gap. Thus if there is a huge demand then you can enter the business in spite of the market competition. Otherwise you will need to be stronger than the competitors to gain an entry. Normally existing firms will always have an advantage due to the experience they have and because they may be well equipped.
Information such as who are the competitors, what is their market strategy and what factors are required to compete with them are important.
u Location
Deciding an optimum location for the business is a strategic and an important one. A good location goes a long way in making the business successful. The location needs to be carefully chosen.
Some places have advantages over the others. You can save out on taxes, water and electricity costs if you are located in some areas. The raw materials can be easily sourced, the manpower would be easily available and you can save out on transportation costs in case of certain locations. Setting up a business in certain location could lead to subsidy and rebates from the Government.
In the case of a retail business one needs to be located in a well populated area and one which is easily accessible.
Certain niche products / services of different competitors are available at a single location. For example there are software belts having all software companies. Similarly there are gold marts which have different gold vendors and jewellers at a single location.
u Regulatory Requirements
Once an entrepreneur has taken all the important decisions relating to starting a business, he/she has to take into account the basic regulatory requirements which are to be followed for setting up the organisation. The most important regulation is the Companies Act, 1956, which regulates all the affairs of a company. It contains provisions relating to the formation of a company, powers and responsibilities of the directors and managers, raising capital, holding company meetings, maintenance and audit of company accounts, powers of inspection and investigation of company affairs, reconstruction and amalgamation of a company and even winding up of a company. The Ministry of Corporate Affairs, earlier known as Department of Corporate Affairs under Ministry of Finance, is primarily concerned with administration of this Act as well as other allied Acts and rules & regulations framed there-under.
The next important regulation relates to environment. The environmental regulatory requirements envisage a wide legislative framework covering every aspect of environment protection like air, water, noise, forest conservation, wildlife protection, etc. Also, separate set of laws and rules for emission of hazardous wastes have been enacted. The Ministry of Environment and Forests (MoEF), is the nodal agency for regulating all such environmental aspects. It undertakes conservation & survey of flora, fauna, forests and wildlife; prevention & control of pollution; afforestation & regeneration of degraded areas. Every industry has to abide by all such guidelines and parameters for environmental protection because only this will ensure its sustainable progress and growth.
u Return on Investment
Return on Investment (ROI) is calculated as Net Profit divided by the Investment made. The ROI is low in the initial years and is expected to grow on a year on year basis.
The ROI needs to be compared with the return that would be earned from alternative business options available. For instance it could be compared with any other source of income, such as money earned from investment in the stock market. Similarly the Return on Capital must be greater than the rate of interest earned from a fixed deposit kept with a bank.
u Hiring Human Resource
Human Resource is also an important determinant of business location and functioning. Factors such as the availability of labour of different skill levels, productivity and cost of labour, flexibility of labour, attitude and behaviour patterns of labour, nature of trade unionism etc. are important to a business. The whole process begins with the task of hiring manpower for starting a business for filling the present and prospective vacancies in the company. The objective of hiring manpower is to procure the right number of employees, with the required qualifications to do the right type of jobs. The hiring process involves four main steps i.e. manpower planning, recruitment, selection and placement. Each of these steps and sub-steps help the employer obtain more and more information about the candidates and thus help in obtaining the best possible manpower for the firm. This function must be performed carefully because any error committed at the time of hiring manpower may prove to be very costly for the firm both in the short as well as long term. These costs will be in the form of waste of time, money and energy in repeated hiring process. The training costs incurred on them will go waste. The efficiency of the organisation will go down due to hiring of unsuitable candidates. At the same time the rate of absenteeism and labour turnover will be higher.
u Technology
It is always better to invest in the best technology at the time of start up itself. Post investment, monitoring of the technology purchased is required. Technology would include plant & machinery as well as latest office equipment. One should not exclude the software required to monitor the business. Choosing optimum software is a challenging task. A technologically advanced business is expected to perform much better in the longer run.
u Business Plan
A business plan is a comprehensive, written description of the business of an enterprise. It is a detailed report on a company's products or services, production techniques, markets and clients, marketing strategy, human resources, organization, requirements in respect of infrastructure and supplies, financing requirements, and sources and uses of funds. The business plan describes the past and present status of a business, but its main purpose is to present the future of an enterprise. It is normally updated annually and looks ahead for a period of usually three to five years, depending on the type of business and the kind of entity.
Every new venture should have a business plan. A business plan is the formal written expression of the entrepreneurial vision, describing the strategy and operations of the proposed venture. The business plan also goes by other names, depending on its intended audience. Presented to a banker, it may be called a "loan proposal." A venture capital group might call it the "venture plan" or "investment prospectus."
The advantages of writing a business plan far outweigh the costs. The purpose of the plan is to enable the top executives of the firm to think about their business in a comprehensive way, to communicate their objectives to individuals who may have a stake in the firm's future, to have a basis for making decisions, and to facilitate the planning process.
Entrepreneurs should undertake the task of preparing the business plan personally. Although outsiders - consultants, accountants, and lawyers - should be tapped for their advice and expertise, the promoter or the initial top management team should be responsible for the writing. Personally drafting the plan will enable the entrepreneurs to think through all aspects of the proposed business and ensure that they are familiar with all the details, for they will have to make decisions about the new venture and be responsible for those decisions. Moreover, investors expect the founders to be involved in and knowledgeable about the proposed enterprise.
The business plan can personally benefit the entrepreneurial team. Founding a new business can be enormously fulfilling and exhilarating, but it is also an anxiety-ridden and tense experience. Usually a great deal of money is at stake, and the consequences of poor decisions can affect many people for a long time. In developing and writing a business plan, the entrepreneurial team reduces these anxieties and tensions by confronting them in advance. By projecting the risks of the new venture into the future, the team comes to grips with potential negative outcomes and the possibility of failure. The knowledge that comes from this experience can reduce the fear of being taken by surprise by problems that could have been foreseen and provided for at the very outset.
Activated Carbon from Coconut Shell
Activated carbon is very important chemical has wide application and employed by numerous industries which require absorption of certain gases and vapours in purification, in catalytic chemical reactions, de colorization of vegetable oil and sugar solutions. Activated carbon manufactured from coconut shell is considered superior to those obtained from other sources mainly because of small macro pores structure which renders it more effective for the Coconut shell is used for manufacturing a variety of products of commercial importance including activated carbon. Activated carbon is a non graphite form of carbon which could be produced from any carbonaceous material such as coal, lignite, wood, paddy husk, coir pith, coconut shell, etc. adsorption of gas/vapour and for the removal of colour and odour of compounds. The activated carbon is extensively used in the refining and bleaching of vegetable oils and chemical solutions, water purification, recovery of solvents and other vapours, recovery of gold, in gas masks for protection against toxic gases, in filters for providing adequate protection against war gases/nuclear fall outs, etc.
Applications
H Granulated activated carbons are used for purification of gases or liquids and are used in a vertical carbon packed column
H Activated carbons have been used as carriers for catalyst in the manufacture of chlorinated hydrocarbons.
H Activated carbon finds application in the preparation of pills and digestive tablets. Its adsorptive properties are utilized in the treatment of laments of the stomach due to hyper acidity.
H In the laboratory, it is used for the production of high vacuum, purification of gases, determination of vapor content in a carrier gas, etc.
National Scenario
In India activated carbon industry is of recent origin. There were only one or two manufacturing units in early fifties which have now increased to 50 or even more. But now activated carbon industry is widely spreaded in different parts of the country. Most of the units are in small scale sector. However, based upon the enquiries there are more than 50 units manufacturing activated carbon for selling. They are located in different parts of the country. Most of these units have capacity of more than 100 tons. Quite a few units have installed capacity of more than 1,000 tons also. Only 10-12 units cater to the national market, all other units cater by and large to local or regional market. It is learnt that the total installed capacity of present available was about 75,000 tons and production was around 65,000 to 70,000 tons which includes purified and regenerated carbon too.
International Scenario
Estimated demand of activated carbon in developing countries like Bangladesh, Sri Lanka and gulf countries, where industrial development is emerging up is around 134580 MT in 2014-2015. The future of beverage industry is very bright. As the demand for activated carbon from this industry is likely to increase rapidly the estimated to be 15 percent annum. Activated carbon is also being used in nuclear plants and laboratories for containment of many radioisotopes.
Since the applications and demand of activated carbon is immense therefore the potential of the product is excellent. It is one of the imperative fields to endeavor.
Cost Estimation:
Capacity : 3 tonnes/day
Plant and Machinery : 45 Lakhs
Total capital investment : 200 Lakhs
Rate of return : 43%
Break Even Point : 45%
Activated Carbon from Coconut Shell by Continuous Rotary Kiln
Coconut shell is used for manufacturing a variety of products of commercial importance including activated carbon. Shell is carbonized by using methods like pit method, drum method, destructive distillation etc. Shell based activated carbon is extensively use in the process of refining and bleaching of vegetable oils and chemical solutions, water purification, recovery of solvents, recovery of gold etc. It is used in gas masks and a wide range of filters for war gases and nuclear fall outs. Coconut shell based activated carbon units adopt steam activation process to produce good quality activated carbon. Activated carbon is produced from organic based materials such as coconut shells, palm kernel shells, wood chips, sawdust, corn cobs, seeds etc. The major importers of activated carbon for the period were the gold mining companies, the brewery and the soft drink industries. Activated carbon is used in the gold mining industries to recover gold from cyanide solution using the carbon in pulp or carbon in leach processes. In the brewery and soft drink industries, activated carbon is used mainly to purify the water used in production. In India activated carbon industry is of recent origin. There were only one or two manufacturing units in early fifties which have now increased to 50 or even more. Activated carbon industry is wide spreaded in different parts in the country.
The future of beverage industry is very bright. History of activated carbon clearly indicates that it is one of the adsorbent materials both in liquid and gas phases and its applications have steeply increased with growth of modern process industries.
A new entrepreneur venturing into this project will find it very lucrative.
Cost Estimation:
Capacity : 3000 MT/Annum
Plant & Machinery : 395 Lakhs
Cost of Project : 767 Lakhs
Rate of Return : 43%
Break Even Point : 52%
Activated Carbon from Bamboo
Activated carbon is a non graphite form of carbon and is micro crystalline in nature. It is extensively used in various industries as a very good adsorbent for odour or colour. There are two varieties of activated carbon viz gas phase or the liquid phase adsorbents. The liquid phase activated carbon is usually powder or granular form where as the gas phase adsorbent is hard granules like dust free pellets. Besides the liquid phase and gas phase classification of activated carbon, into grades based on the chemical properties it possesses such as its methylene blue (MB) value, surface area, ash content, iron content, pH factor and adsorption quality of carbon.
The term activated carbon, active carbon, or active charcoal is usually applied to amorphous carbons possessing higher adsorption capacity their wood or animal charcoal. Many carbon of industrial value are prepared from coal and from organic vegetable and animal matter. The resulting amorphous products include Charcoal coke, and petroleum coke. Carbon as such is probably, the most widely distributed element in nature. It occurs in two allotropic crystalline forms, viz, graphite (hexagonal system) and diamond (isomeric system), The former is soft and weak while diamond is hard and transparent.
A large variety of raw materials are available for the manufacture of these products Coal, petroleum coke, and wood charcoal are activated by gas activation. Paddy and groundnut husk, saw dust, bagasse molasses, straw, tree bark, bagasse, cocoa bean, shells, bamboo, distillery slop, waste mahua flowers and various industrial wastes have been utilized for the production of active carbons by chemical activation. Small quantities of activated carbons have been manufactured indigenously on commercial scale from paddy husk, bagasse and filter press mud particularly for use in the refining of gur.
Many carbonaceous materials such as petroleum, coke, saw dust, lignite, coal, peat, wood charcoal, nutshells, and fruit pits may be used for the manufacture of activated carbon, but the properties of the finished material are governed not only by the raw material but by the method of activation used. Activated carbons form two main classes, those used for adsorption of gases and vapors, for which a granular material is generally employed and those used in purification of liquid for which a powdered material is desired.
Due to the expansion of pharmaceutical and vegetable oil industry the demand of activated carbon is expected to rise sharply in the coming years.
Apart from demand in Indian market, there is also huge demand of activated carbon in foreign market for the high quality activated carbon.
It is very clear that there exists very good scope for this product and it can be exploited easily.
Cost Estimation:
Capacity : 1500 Ton/Annum; Composition of Batch Mix, it's a Batch process, one feed 5 Tons finished product will required
Plant & Machinery : 82 Lakhs
Total Capital Investment : 313 Lakhs
Rate of Return : 44%
Break Even Point : 46%
Glue from Leather Waste
Animal glue was the most common woodworking glue for thousands of years until the advent of synthetic glues such as polyvinyl acetate (PVA) and other resin glues in the 20th century. Today it is used primarily in specialty applications such as lutherie, pipe organ building, piano repairs, and antique restoration. Most animal glues are soluble in water, useful for joints which may at some time need to be separated. Alcohol is sometimes applied to such joints to dehydrate the glue, making it more brittle and easier to crack apart. Specific types include hide glue, bone glue, fish glue, rabbit skin glue.
Significant amount of solid waste are produced including trimmings, degraded hide and hair from the beam house process. The solid wastes can represent up to 70 % of the (wet) weight of the original hides. Large amounts of sludge's are also generated. Solid wastes can be utilized to manufacture utilizable products like dog toys, gelatin, glue, shoes etc.
An animal skin consists of about 61% water, 34% fibrous proteins, 1% globular proteins, 2% lipids, 1% natural salts and some other ingredients including pigments. Out of three layers, the epidermis, dermis and the hypodermis it is the dermis which is later transformed into leather. The epidermis primarily composed of keratin has hair which is removed and the hypodermis has flesh and blood vessels which are also removed. In leather processing, the basic operations revolve round cleaning the skin of unwanted inter fibril material through a set of pre-tanning operations in the Beam House, processing the leather permanently by means of tanning and adding aesthetic value during the post tanning process. The starting material in most cases is raw hide or skin which has been preserved temporarily by the addition of common salt.
There is a good scope and market potential for this product. New entrepreneurs should venture into this field.
Cost Estimation:
Capacity : 750 MT/Annum
Plant & Machinery : 139 Lakhs
Cost of Project : 335 Lakhs
Rate of Return : 43%
Break Even Point : 68%
Adhesives
An adhesive may be described as a substance which is capable of holding materials or adherents together by surface action. This process of joining the two or more surfaces is known as adhesion.
The basic function of an adhesive is fastening the components of an assembly together and maintains the joined parts together under the service conditions. But the two parts can be bonded by other methods also. The adhesives for bonding assume importance, because the process is fast, easy and economic.
Adhesives are advantageous over other methods of joining materials. Thin films, fibers and small particles that cannot be combined satisfactorily by other techniques are readily bonded by adhesives. Typical examples are laminates of films of various high polymers and plastics, aluminum foil paper, glass wool for insulation, abrasive wheels, paper, type cord with tyres, corrugated boards, paper bags, labels, tapes, safety glass, particle board, plywood etc.
Polyvinyl acetate (PVAc) (Vinyl Acetate Homopolymer) includes polymers of all molecular weights formed from the free radical polymerization of vinyl acetate monomer. These homopolymers are sold as latex, emulsion or spray dried solids. The spray dried polyvinyl acetate emulsions can be reconstituted in water, mixed with other adhesive emulsions or mixed with other dry ingredients where they have the ability to be used as a binder in dry mix formulations.
The PVAc emulsions are, by far, the major form in which polyvinyl acetate is used in the adhesive market. PVAc emulsions exhibit excellent compatibility with many modifying resins, lending themselves to a broad range of applications through formulation. In addition to compatibility, molecular weight (or grade) and the amount and type of protective colloid used to produce the emulsion affect adhesive properties.
PVAc homo-polymers are the lowest cost emulsions while possessing good adhesion to many porous surfaces such as wood and paper.
Packaging and furniture applications involving paper and wood substrates constitute over 90% of the usage of PVAc emulsion adhesives. The balance of the usage involves a wide variety of applications, including consumer white glue. The packaging applications include boxboard manufacture, paper bags, paper lamination, tube winding and remoistenable labels. In construction, PVAc is used in prefab construction, including flooring and panel installation. PVAc is not generally used as a primary fastener where great strength is needed.
The market size of all types of adhesives is very large and growing. Of this, the premium products account for some 45%. Quantitatively, the overall market size is growing annually at 11%. In India the adhesive industry players are Pidilite, 3M India, Huntsman, National Starch, Bostik Findley, Sika, Industrial Adhesives, Anabond, Seagull Industries, Metlok and others.
There is a very good scope in this field and new entrepreneurs should venture in this sector.
Cost Estimation:
Capacity : 900 MT/Annum PVA Adhesive
300 MT/Annum Polyurethane Based
300 MT/Annum Synthetic rubber Based
300 MT/Annum Water Proofing Compound Liquid
300 MT/Annum Water Proofing Compound Powder
Plant & Machinery : 58 Lakhs
Total Capital Investment : 252 Lakhs
Rate of Return : 41%
Break Even Point : 62%
Beer Plant
Beer is the world's most widely consumed alcoholic beverage; it is the third most popular drink overall, after water and tea. People of different countries take beer in varying much like a soft drink in European countries; it is just a substitute of water. The alcoholic contents and main source stuff also keep varying according to the tests of the major part of population of the particular country although it is a fashion to ask for beer of every origin in every country. Formulations of beer manufacturing are done with the view of availability of the raw materials in that particular part of the World where the brewery is proposed to be established. In most of the parts of the world, barley is a universal source of beer extraction. But, beers are manufactured from Chamomile flowers and powdered gingers etc. The strength of beer is usually around 4% to 6% alcohol by volume (abv) though may range from less than 1% abv, to over 20% abv in rare cases.
Applications
Beer is drink primarily as a source of liquid and for its pleasant & refreshing taste; none the less, its nutritional properties are of great importance. The calories content of beer is significant but not special high. A 355 ml. bottle of average beer yields approximately 143 Kcal of energy. The normal daily intake is 2400 K cal. The calories are provided by the unfermented, residues and alcohol. Alcohol also replaces Carbohydrates, fats, proteins, so that there may be a gain in body weight. Beer also contributes to mineral requirements of the body and supplies useful quantities of vitamin B complex. A special use of beer is for the control of sodium intake in the treatment of disease e.g. congestive heart failure, high blood pressure and certain Kidney and liver ailments. Beer cannot (because of its low pH say 4.2), harbor any pathogenic germs. The content of nourishing components is all in dissolved form. Beer is free from fat; it acts as a diuretic and promotes the formation of gastric acid acting as an appetite inducer. The alcohol in the beer is effective according to the amount & concentration.
Global demand
Beer is a popular beverage all over the world. Though an alcoholic beverage beer is not considered a hot drink like rum or whisky as it contains alcohol ranging from only 8 to 9 percent. Presently, some 36 units are manufacturing beer in India with an estimated output of 500 million liters. In consumption, India holds the 29th position with the annual consumption growing by a little less than 30% in the last five years. The growth of Indian beer industry in recent years has been fast. From 100 million cases in 2006, the Rs. 30 billion Indian beer market seems set to register a further growth of 8.5% in 2006 07, thanks to the spurt in beer consumption in Punjab, Haryana and Delhi. Total market of beer was estimated at Rs. 50 billion in 2007-08 which showed an increase of 23% over that of the preceding year. The annual growth in the Indian beer market has been around 8% in the recent years, which compares well with the growth in China. But the Chinese market is over 25 times more than the Indian market of over 900,000 kilolitres. Sales turnover increased for most of the companies in 2008-09, while net profit declined in the same period. For major companies like United Spirits and United Breweries sales increased by around 22-24% in 2008-09. In the case of United Spirits, net profit declined by 5% in 2008-09, while that of United Breweries declined marginally by 1% in the same period. It is estimated that the demand of bear in 2010-2011 was 12.12 MT and it will be 15.26 MT till 2015.
The demand of bear in the market is immense and therefore its market position is splendid. Hence it is an excellent field to venture.
Cost Estimation:
Capacity : 3000000 Litres/Annum
Plant and Machinery : 403 Lakhs
Total capital investment : 959 Lakhs
Rate of return : 45%
Break Even Point : 47%
Beer & Wine
Drinking practices vary substantially among different countries and different masses. But both alcoholic beverages are very popular among all ages of people. The alcoholic drinks market is broadly classified into five classes, starting from beers, wines, hard liquors, liqueurs and others.
The market is stocked with different types of alcoholic beverages, differing in terms of alcohol content. There are some alcohol beverage types that are low in alcohol content like beer. Beer has an alcohol content of about 3-8% and wine consists of approximately 7-18% alcohol concentration. The alcohol content of certain alcoholic beverages can be increased by adding on distilled products. Beer is one of the oldest and probably the most popular alcoholic beverage in the world. It is sometimes even referred to as "liquid bread".
Distinctive alcoholic beverages differ in terms of their aging process like beer that undergoes a process of short fermentation, lasts for about a week or so. On the contrary, wine, which involves a longer process of fermentation, has a long aging period lasting many months or even years. Beer is usually made from barley, whereas wine can be made with different fruits like plums and cherry, but usually the wine that can be found in the market is made from grapes. Certain kind of alcohol beverages contains anti-oxidizing chemicals like phytochemicals. The phytochemicals are basically found in good quantity in wine. Alcoholic beverages are said to be beneficial if taken in limited amount to increase the appetite. Excess consumption may lead to several other biological problems.
Liquor industry has always remained under strict governmental control in terms of capacity creation, distribution, taxation. While overall public perception spells restraint, it is the symbol of high life even in puritan India. The branded liquor industry is growing at a rate a around 10 to 12%. The total consumption of liquor in India was nearly 100 million cases of beer and 60 million cases of whisky and other spirits in fiscal 2005-06. The consumption expanded by nearly 10% in 2006-07 to reach over 110 millon cases of beer and about 70 million cases of whisky and other spirits.
The growing popularity of wine in India is generating lots of interest among big and small wine producers. This is also reinforced by the fact that the cost for opening and setting up of wine plants with capacity of around 100,000 lts comes only to somewhere between Rs 10-15 million mark. As a result many entrepreneurs, Indian and foreign, are entering in this sector. Total market of wines, spirits and liquors was estimated at Rs. 127.27 billion in 2007-08, which represents an increase of around 16% over that of the preceding year. The annual growth in the Indian beer market has been around 8% in the recent years, which compares well with the growth in China.
A feather in India's alcoholic drinks industry is that India's McDowell's No.1 brandy has emerged as the highest selling brandy globally, pushing the world famous E&J Gallo to the second spot. Other global majors at the top included Presidente brandy (Allied Domecq), Wilyhever Goldkrone (Graflich von Hardenberg'sche Kornbrennerei) and Chantre (Eckes) occupying the next three spots among the top five. Nearly 62.5 million people in India drink alcoholic beverages. The per capita consumption of alcohol is 4 liter per adult per year. About 17% of adult men are addicted to alcohol. Over 65% of alcohol produced in South East Asia is from India. India produced 4 million tonnes of alcohol in 2006-07. Besides, it imports 7% of the total alcoholic beverage imports in the region. The factors that make India a promising market is the changing demographics - youth and middle-aged persons will constitute 54% of the population in 2011, as against about 50% in 2006, adding 20 million to the drinking age population annually. Changing lifestyle has also seen the number of Indian drinkers rise from 1 in 300 two decades ago to more than 1 in a 20 today. It is apprehended to grow to 1 in 5 by 2011.
There is a very good scope and ample space for entry for new entrepreneurs into this sector.
Cost Estimation:
Capacity : 1800 Kl/Annum (Beer)
1890 Kl/Annum (Wine)
Plant & Machinery : 945 Lakhs
Cost of Project : 1971 Lakhs
Rate of Return : 44%
Break Even Point : 55%
Rice Beer
Rice beer is an alcoholic drink generally made from rice. Those who consume moderate amounts of beer (one to two a day at the most) have a 30-40% lower rate of coronary heart disease compared to those who don't drink. Beer contains a similar amount of ‘polyphenols' (antioxidants) as red wine and 4-5 times as many polyphenols as white wine.
Alcohol has also been attributed of its ability to increase the amount of good cholesterol (HDL) into the bloodstream as well as help to decrease blood clots. Beer also contains vitamin B6, which prevents the build-up of amino acid called homocysteine that has been linked to heart disease. Those of us who have high levels of homocysteine are usually more prone to an early onset of heart and vascular disease. A new study performed at the TNO Nutrition and Food Research Institute in Utrecht indicates that those who drink beer had no increase in their homocysteine level but those who drank wine or liquor had an increase of up to 10%. Also noted was the fact that those who drank beer experienced a 30% increase in vitamin B6 in their blood plasma, thereby proving that beer (in moderation) is actually healthier to drink than other alcoholic drinks.
It is possible to use 100 per cent rice and some locally grown additives in the production of beer. The idea of using 100 per cent rice in beer brewing is that rice is available in almost all countries particularly in Asia. The whole tedious process of beer making was conducted. During the process, three stages were done to malt the rice steeping, germinating and kilning. The rice is found to be a good material in beer mainly because it is a good source of starch. The properties of barley are not so different from rice. Both grains have husks that are advantageous due to their less fat and protein content and can form filter bed during mashing. Additives such as hops, duhat can be used to improve the flavor, aroma, and color of beer. The technology that uses 100% rice in beer production is first in the country, offer the consumers with an alternative, low cost, and high quality product, aside from creating additional livelihood and helping the economy in saving our foreign exchange. Of the rice going to the domestic market roughly 60% goes to table rice, about 25% to the industrial market and processed food, and about 15% to beer.
Presently, some 36 units are manufacturing beer in India with an estimated output of 500 million liters. The market for beer in India was about 65 million cases of 12 bottles each and is slated to touch 10 million cases in 2005-2006, a growth of 23% in a year. In consumption, India holds the 29th position with the annual consumption growing by a little less than 30% in the last five years. Per capita consumption of beer is as low as half-a-liter as against 128 liters in Germany, 129 liters in New Zealand and 116 liters in Denmark. Even China has a per capita consumption of 20 liters. Against India's 5-million hl, China's market is 165-million hl. The Indian industry has a capacity of little less than 7 million hl. Andhra Pradesh is the third largest consumer of beer after Maharashtra and Tamil Nadu, While Maharashtra consumed a million hectoliters; Tamil Nadu is at 850,000 and Andhra at 800,000 hl.
India presents a huge growth potential for alcoholic beverages sales. The domestic production of alcoholic beverages is on the rise, especially beer with official statistics reporting a 12 per cent increase in domestic beer production. Increasing GDP, favourable growth in the demographics with a growing urban middle class, growth of modern retail formats, hopeful rationalization of the taxation rules and ban on local country liquor and rising health consciousness, age preferences will act in favour of the growth of both alcoholic (beer and wine) beverages in India in the near future.
All new entrepreneurs venturing into this field will find a future which is very promising and bright.
Cost Estimation:
Capacity : 30000 Thousand Beer Bottles
Plant & Machinery : 1325 Lakhs
Cost of Project : 2230 Lakhs
Rate of Return : 45%
Break Even Point : 49%
Indian Made Foreign Liquor
Indian made foreign liquor is prepared from ethyl alcohol of different concentration with added flavour and coloured bottled hygienically. In India there are about 260 units engaged in the production of alcoholic brandy, whisky, beer & other beverages. The installed capacity of all those units is estimated of the order of 1400 to 1450 million liters per annum. India has been exporting alcohol in substantial quantities. The estimated growth rate of demand is 20% per annum with increase in population and other industrial growth and consumption. There is good scope for new comers.
Cost Estimation
Plant Capacity : 10,000 Btls/Day
Plant & Machinery : Rs. 201.0 lakhs
W.C. for 3 months : Rs. 150.0 lakhs
Total Capital Investment : Rs. 450.0 lakhs
Rate of Return : 50.93 %
Break Even Point : 44.86 %
Aluminium Extrusion Plant
Extrusion is a process equally suitable for the simplest shapes and for the most complex for the wide range of large and the small items for structural members or for decorative trim. Some sections produced by extrusion cannot be made by other process economically. The two main advantages of this process over other manufacturing processes are its ability to create very complex cross-sections and work materials that are brittle, because the material only encounters compressive and shear stresses. It also forms finished parts with an excellent surface finish. Aluminium sections made by the extrusion process offer many advantages.
The aluminium industry can be categorized into two principal segments. The key segment is the production of primary aluminium by integrated producers engaged in the entire value chain from the mining of bauxite in an alumina refinery, and conversion of alumina into primary aluminium metal. The second principal segment consists of secondary or downstream producers who are engaged in the manufacture of value-added semi fabricated aluminium products such as rolled products, extrusions and foils. The cost of an extruded aluminium sections depends on many factors such as alloy, temperature, overall size, weight per meter, complexity of design, quantity and tolerance requirements. As a general rule the cost per meter of an extrusion increase where high strength alloys are used and it decreased in range that designers have it's yet fully exploit the possibilities of sections made in this way.
The extrusions segment is the preserve of the secondary producers with nearly 40 players, such as Jindal Aluminium, Century Aluminium, Sudal Industries, Bihar Extrusions and Bhoruka Aluminium, which account for over 80 per cent of the aggregate production capacity of tonnes. Primary aluminium producers such as INDAL, HINDALCO, MALCO AND BALCO account for the remaining of production capacity. The capacity overhang can be gauged from the fact that as against an aggregate capacity of tonnes, the domestic demand is currently only around tonnes. The dependence on exports will be critical to the survival of the secondary, players in the extrusion markets.
Extruded aluminium products are finding growing exports prospects. Aluminium extruded products are mainly tubes, pipes and blanks. These are manufactured in various forms and can be broadly classified in (a) rods & (b) sections. Sections include hollow and solid sections. In extrusion, the cylindrical rod called billet, is squeezed hydraulically into any shape by forcing the hot billet through the die orifice. Extrusion presses of various sizes are available ranging from 200 ton to 5000 tons capacity. These presses can be designed from simple to very complicated type with intricate and most sophisticated component.
Aluminium extrusion products are widely used in transport industry, railroads, electronics and housing industry etc. Extrusion process achieves cheaper, lighter and neater products. HINDALCO, BALCO, INDAL, and Jindal extrusion Ltd are the major producer in this segment. The extrusions market is expected to grow at an annual rate of eight percent over the next few-year.
The exports of aluminium-extruded products are gradually on rise. Afghanistan, Algeria, Bahrain, Bangladesh, Burma, Hong Kong, Kenya, Kuwait, Oman, Sri Lanka, U.A.E. etc. are the main middle East countries to whom aluminium extruded products like tubes, pipes and blanks are being exported. At present aluminium extrusion products have penetrated a large area of applications and are manufactured in India with or without foreign collaborations. It requires moderately high level of technology and investments but the industry is quite profitable and finds ready market within and outside the country. Demand for aluminium is driven by use in growth industries such as aerospace, and characteristics such as light weight and recyclability make it increasingly attractive for use in cars and consumer electronics.
India is the eighth leading producer of primary aluminium in the world, with total production amounting to over 1,200 KT. The country has witnessed significant growth in aluminium production during the past five years. The Indian aluminium market is growing at a rapid pace and it is one metallic industry where India can emerge as a powerhouse within the next decade. According to industry sources, India with total bauxite reserves of about 3 billion accounts for almost 7.5% of the world's 65 billion bauxite reserves and is ranked sixth among the countries with highest bauxite reserves. Indian bauxite reserves are expected to last over 350 year with proven and probable reserves is estimated at 1200 Mt. The worldwide alumina production competence is around 58 million tonnes in which India have 2.7 million tons, being the fifth largest producer, after Australia, Guinea, Brazil and Jamaica. The Indian aluminium market is growing at a rapid pace, yet per capita consumption is extremely low: With over 7% growth per annum, one of the highest in the world, the Indian aluminium market is booming. Even better, sectors that extensively use aluminium are themselves booming, ensuring that this sector stays firmly on the growth path for times to come.
The complete range of plants and machinery are available indigenously and compare well with imported extrusion plants. Looking at the future scopes for aluminium and aluminium extruded sections, it can be foreseen that new entrepreneurs will find it quite attractive to come up with good production targets.
Cost Estimation:
Capacity : 2400 MT/Annum
Plant & Machinery : 318 Lakhs
Cost of Project : 738 Lakhs
Rate of Return : 44%
Break Even Point : 58%
Aluminium Secondary Billet Casting Plant
The 20th century has seen the emergence of aluminium as a key industrial and strategic material, second to only steel in terms of importance and tonnages of production. Beginning with an experimental production of 1.7 tonnes in 1859, the world production of primary aluminium has grown to about 16 million tonnes in the year 1983-recording in the produces the fastest rate of growth of consumption for any metal. A point to notice is the upsurge in production synchronizing with the two world wars pointing to the need for aluminium as strategic material.
In today's industrial civilization, aluminium is important because it serves as a basic input for a number of industries; it is indispensable for building up and strengthening the industrial infrastructure in the basic sectors viz. power and transportation besides finding extensive use in other vital sectors like space, defense, buildings, construction, domestic hardware's etc.
Aluminium is a metal with high strength-to-weight ratio, better formability, and high ductility, anti-corrosive properties, with thermal and electrical conductivity. Because of these unique combinations of properties, aluminium (including its alloys) has substantially replaced a number of traditional materials from their established uses e.g. steel, copper, lead, zinc among metals and glass, wood and paper among non-metals. Aluminium is crucial for expansion of power availability and electrification programme.
It has a significant role to play in saving energy in transportation sector, thus help reducing the consumption petroleum products. Aluminium plays a key role in the progress of industrial development because it serves as basic input for a number of industries from its use as a strategic metal.
In view of the present day energy and fuel crisis and the need for preservation of forests for ecological balance, application of aluminium in place of steel and wood in transport sector, which has high growth potential, has become more important especially because aluminium with its inherent properties of light weight, high strength-to-weight ratio, non-corrosive, tensile strength consumes less fuel.
Building and construction industry has now started evincing keep interest in the use of aluminium as it replaces wood and thereby promotes conservation of the fast depleting forest wealth.
Development of high strength alloys good formability, improved casting and welding techniques have opened up wide areas of application of aluminium in the machinery and equipment sector. Another important area is the utensils, household appliances and consumer durables. Aluminium due to its conductivity, lightweight, durability and non-toxicity constitutes the most fuel-efficient and hence the ideal material for kitchenware's. Widespread usages of aluminium utensils is, therefore, necessary in the larger context of fuel saving.
The global aluminium industry has undergone remarkable changes in the recent past and the outlook for the metal is quite optimistic in the coming years, as the global demand is expected to grow by eight percent in the next few years. The aluminium production is moving forward at full pace worldwide with the notable increase in demand for the metal, as a result of developments in the traditional areas of its application. Though the rate of growth of the aluminium industry is relatively low in the developed countries, having already reached a peak, in developing countries of Asia like India and China, an accelerated growth can be expected. Globalization has opened up a worldwide market for the metal and along with it new challenges and opportunities to be faced by the industry. New entrepreneurs should venture into this field.
Cost Estimation:
Capacity : 21600 MT/Annum
Plant & Machinery : 410 Lakhs
Cost of Project : 2020 Lakhs
Rate of Return : 43%
Break Even Point : 63%
Alumina from Bauxite
Bauxite ore is an important mineral used in producing alumina, the raw material that is in turn used for producing aluminum. Approximately 85% of Bauxite is converted into alumina, 5% is used in non-metallurgical bauxite applications, and the remaining 10% is utilized in other applications. Leading countries contributing for about 70% of the total mined bauxite include Australia, Guinea, Brazil and Jamaica. On the other hand, Australia, the United States, China and Jamaica account for approximately 60% of the world's alumina production. Asia-Pacific is expected to remain the fastest growing as well as the largest Bauxite and Alumina Market. Europe, the second largest market, is projected to register sales of 52 million metric tons by 2010.
The worldwide capacity to produce alumina was placed at around 80 mn tonnes in 2007 and was slated to touch 100 mn tonnes in 2010. Alumina accounts for about 22% of the cost in the production of aluminium.
India's share in world aluminium market is estimated at around 3%. India ranks fifth in bauxite production after Australia (62 mn tonnes), Guinea (17.50 mn tonnes), Brazil (16.20 mn tonnes) and China (10.75 mn tonnes). With a total output of 9.25 mn tonnes, the country contributes about 6% of the world's total production of 159 mn tonnes, India holds the fifth position in reserves base and is ahead of China with 2300 mn tonnes. India ranked seventh in alumina production with a total output of 3 mn tonnes, a share of nearly 5% of the global production of 61 mn tonnes.
About 25% of all bauxite mined is used for producing abrasives, catalysts, adsorbents, and other industrial chemicals.
Bauxite in India is available in Katni, Belgaum, Kohlapur, Ranchi, Lohardanga, Bhopal, Orissa, Andhra Pradesh. A reserve of about 571 million tons has been estimated from 25 deposits in Visakhapatnam and East Godavari District. These gibbsite bearing deposits have an average Al2O3 of 46.76% with low silica (4%) and titanium (2%) but high in iron (8-28%) and are best suited for alumina extraction by the Bayer's process under low P.T. conditions. Other uses are in the cement industry, in the manufacture of ferric alum & aluminous chemicals. Demand for aluminium is estimated to grow at 4 to 6% per annum. The demand for the metal is expected to pick up as the scenario improves for user industries like power, infrastructure and transportation, which are all on the move.
There is a good market potential and scope to venture in this field.
Cost Estimation:
Capacity : 19998 MT/Annum
Pure Alumina from Bauxite
Plant & Machinery : 671 Lakhs
Cost of Project : 2113 Lakhs
Rate of Return : 43%
Break Even Point : 48%
Aluminium Pilfer Proof Caps
Pilfer Proof Caps (P.P. Caps) are popular all over the world which provide not only the above mentioned qualities to the bottle contents, but also a perfect seal which guarantees non-contamination from external environments. This ensures the contents to remain unaffected from atmospheric moisture, gases, dusts and other impurities.
Aluminium made pilfer proof caps do not prove too costly and it is easily available because raw material is available in abundance on the earth. It is easy to process aluminium sheets with the aid of a normal press shop.
Most of the manufacturers make use of pilfer-proof caps to seal the bottles so as to avoid any adulteration of the product once it has been transported from the factory. These caps also provide a sealing so that the product is not affected by the environmental conditions during storage and transit. Pilfer-proof caps are screwed on the bottle mouths and clamped in position so that unless turn out they cannot be unscrewed. The caps are painted and generally printed with brand names and instructions for opening. With increases in the consumption of bottled products in areas like drug industries, hair oil, cosmetics, fruit, juices, liquid detergents and many other products, the demand of pilfer-proof caps is increasing. There are usually made of aluminium sheets in different sizes.
Aluminium pilfer-proof caps are used in mostly liquid containing bottles, juices and other food products, drugs etc. They can easily be opened with slight pressure. It ensures non-adulteration or pilfering. Pilfer-proof caps are used in Beer, Wine, Juices, Medicines, Hair oil, and Petroleum products industries.
The demand for pilfer-proof caps are directly linked with the growth and expansion of its consumer industries. There are various types of pilfer-proof caps available in the market of various size and shape and with deferent raw materials. Since there is a continuous increase in the industries manufacturing medicines, aerated water, hair oil, soft and hard drinks, the demand of these items is on increase.
The demand of aluminium pilfer-proof caps increasing day by day. So, there is a good scope of enter in this field.
Cost Estimation:
Capacity : 160000 Nos/Day
Plant & Machinery : 14 Lakhs
Total Capital Investment : 128 Lakhs
Rate of Return : 50%
Break Even Point : 38%
Lube Oil Blending Plant
(Engine oil, Gear oil & Grease)
A lubricant is a substance (often a liquid) introduced between two moving surfaces to reduce the friction between them, improving efficiency and reducing wear. They may also have the function of dissolving or transporting foreign particles and of distributing heat.
Engine Oil is a semi-synthetic high performance lubricant. It is designed for ultimate protection and performance on all naturally aspirated, fuel injected, turbo-charged and multi-valve cars fuelled by gasoline, diesel or LPG.
Multipurpose Gear Oils are used for the lubrication of gears operated under severe conditions, including automotive applications. High quality HVI base stocks blended with a sulfur-phosphorous extreme pressure additive package provide superior performance including anti-weld, anti-scuff, and anti-wear properties.
The function of grease is to remain in contact with and lubricate moving surfaces without leaking out under gravity or centrifugal action, or be squeezed out under pressure. At the same time, grease must be able to flow into the bearing through grease guns and from spot to spot in the lubricated machinery as needed, but must not add significantly to the power required to operate the machine, particularly at start up.
The lubricating oil and grease market in India is of the order of 1.3 million tonnes and is growing at around 4.5% annually. The moderate growth is paradoxically due to the supply of better quality of lubricants which have longer servicing capability.
The Indian lubricants industry claims to be the sixth largest in the world. It has the presence of almost all major MNCs which include Shell, Mobil, Gulf Oil, Caltex. Some of these oil majors have even tied up or renewed old ties with public sector undertakings, thereby gaining the advantage of distribution and infrastructural networks. The industry is being constrained by high petroleum prices.
The lube market consists of two major segments, automotive and industrial, having a market share of 60% and 40%, respectively. Most of the competition is crowding into the first category. In the automotive segment, while cars and two/three wheelers segment accounts for 30% of the market, diesel operated engines, trucks and other heavy vehicles have the bulk share of 70%.
Cost Estimation:
Capacity : 1500 Kls/Annum (Motor oil)
Plant & Capacity : 34 Lakhs
Total Capital Investment : 391 Lakhs
Rate of Return : 47%
Break Even Point : 31%
Concrete block & ready mix concrete
Concrete is a composite construction material composed primarily of aggregate, cement and water. Concrete is widely used for making architectural structures, foundations, brick/block walls, pavements, bridges/overpasses, motorways/roads, runways, parking structures, dams, pools/reservoirs, pipes, footings for gates, fences and poles and even boats. Concrete blocks for building houses were first made in Europe around 1850. Ready mix concrete is a modern trend of introduction in the Asian Countries. It is already introduce long before in the European Countries. It is new concept of use concrete in the construction area. Ready mix concrete has advantages in the area where immediate requirement of concrete mixture like in the preparation of bridge overhead roads on or the road construction. In India there is a hope to get good scope of RMC within short period. There are plenty of raw materials and plant machineries in India indigenously.
Applications
The concrete hollow blocks are used for building construction in developed countries. It takes less time in building work when concrete hollow blocks are used for building walls. Several bit of wall height can be constructed in a few hours in case of concrete hollow block walls compared with much slower rate of construction with conventional bricks. The second major advantage derived by the use of concrete hollow blocks is that the cavities in the blocks are fitted with air column even after completion of the building work. The cavity firmed in the concrete blocks makes it easy for prompt handling and higher in weight in comparison to the solid blocks of the same dimensions. Thus, workers engaged in building construction work feel less exhausted even after long stretch of work. It is used in the construction of bridge, dam overhead roads, pools, multi stories buildings etc.
National Scenario
India is the second largest producer of cement in the world after China. It is followed by Japan and the USA. The overall turnover of the industry is placed at Rs 600 bn. India accounts for a share of about 6% against China's 37% and the USA's 5% of global production. India is the second largest producer of cement in the world after China. It is followed by Japan and the USA. The overall turnover of the industry is placed at Rs 600 bn. India accounts for a share of about 6% against China's 37% and the USA's 5% of global production.
Cement and ready mix concrete demand is dependent on the level of construction activities. Construction activities are in turn closely related to a number of macroeconomic factors such as consumer spending, population growth, manufacturing sector growth, inflation rates, and government spending etc. The construction industry is the second largest industry in India after agriculture. It accounts for about 11% of India's GDP. Construction constitutes 40% to 50% of India's capital expenditure on projects in various sectors such as highways, roads, railways, energy, airports, irrigation etc. The growth of RMC (Ready Mix concrete) in India has in the past been predominantly driven by demand from the metro cities.
International Scenario
The world market for Ready Mix Concrete is projected to reach $105.2 billion by the year 2015. This is primarily driven by rapid growth in infrastructure, residential sectors, and non residential sectors in various parts of the world. Further, the rapidly growing demand for the ready mix concrete in urban areas will also contribute to the market growth.
The demand of concrete block & ready mix concrete in the market is immense and therefore its market position is splendid. Hence it is an excellent field to venture.
Cost Estimation:
Capacity : 2400000 No.s Concrete blocks /Annum,
49000 Cubic metre Ready mix concrete/Annum,
Plant and Machinery : 1068 Lakhs
Cost of project : 1477 Lakhs
Rate of return : 44%
Break Even Point : 42%
Dental College
Dental education occupies a place of pride in the field of medical studies. The basic aim of the dental colleges is to provide health-oriented courses that emphasize the prevention of oral diseases. In a human body mouth is considered to be the mirror dental health being intimately related is part and parcel of the general health and well being of an individual. With increasing awareness in oral health and surge in the demand for cosmetic dental care together with technological advances in delivery of dental care, need for trained professionals in this field is ever increasing. As dentistry offers a satisfying, rewarding and lucrative career, it has become the subject of choice for aspiring professionals of tomorrow. Dentists are doing a great job today. Right from fulfilling the basic needs of restoration and prosthesis of common man, they are designing smiles of models, actors and others who want to enhance their confidence. They are doing well both in the public and the private sector. But with time their number is increasing and so is the competition amongst them. There is now a dire need of these professionals to explore new areas and widen their scope of employment.
Shrimp Farming (Breeding in Sea Water)
Shrimp farming has developed widely through the desire to provide for increasing demands and continues to grow economically despite any environmental, ecological, and social disadvantages. A shrimp farm is an aquaculture business for the cultivation of marine shrimp. Shrimp is enormously popular seafood in the developed nations of the world, including the United States, the European Union, Japan, and Australia. Shrimps belong to the order Decapoda, a crustacean order. All decapods possess a full carapace or "head shield" and eponymously, five pairs of walking legs. Their first three pairs of thoracic appendages are modified into "maxillipeds" or feeding legs. Shrimps are distinguished from the other decapods by having the front-most section of the abdomen about the same size as the rest of the sections and by having five pairs of abdominal appendages, or pleopods, adapted for swimming. There are more than 3,000 living species of shrimp worldwide.
Cost Estimation:
Capacity : 400 MT shrimp/Annum in two crops
Shrimp farming in 35 hectares, 20 ponds, each pond-1 hectares
Plant and Machinery : 560 Lakhs
Total Capital Investment : 1570 Lakhs
Rate of return : 40%
Break Even Point : 40%
Maize Processing
(Maize Starch, Liquid Glucose, Gluten, Dextrose)
The maize also called "Corn or Indian Corn" is widely cultivated in India; Maize ranks high among the four or five principal cereal crops of the world. Maize is utilized in more diversified ways than any other cereal. Starch is the main product of a maize processing unit, which is consumed in various other industries like food, pharmaceuticals, textiles, paper, hotels and restaurants, etc. The other products include Gluten, Germ, Fiber (husk) and Corn Steep Liquor. Gluten has great demand in animal feed industry because of its high protein content (70%). Germ is expressed to extract germ oil which is low cholesterol containing edible oil. Fiber, mainly the husk, is used by animal feed manufacturers. It has demand in wet form itself for animal feed. Corn Steep Liquor is one of the substrates for culture media for manufacturing of antibiotics and other microbial production systems.
Cost Estimation:
Capacity : 200MT Maize processed/day
Starch 133 MT/day
Glucose 20 MT/day
Gluten 18 MT/day
Germ 8 MT/day
Fiber 4MT/day
Steep Water 12MT/day
Plant and Machinery : 3175 Lakhs
Total capital investment : 7310 Lakhs
Rate of return : 33%
Break Even Point : 40%
Starch and Allied Products from Maize
(Starch, Liquid Glucose, Dextrose Monohydrate, Dextrose Anyhdrous, Sorbitol and Vitamin - C)
Starch is a group of polysaccharides, composed of glucopyranose units joined together by-glucosidric linkages. It conforms to the molecular formula, (C6-H10O5)n, where n varies from a few hundred to over one million. Starch is found as the reserve carbohydrate in various parts of plants and is enzymatically broken down to glucose to other carbohydrates according to the metabolic needs of the plants.
Industrially, starch is broadly divided into two types viz., natural and modified. Natural starches also designated as unmodified starches or simply starches are obtained from grains such as sorghum, from roots like potato, tapioca and arrowroot, and from the pith of the stems of certain palms such as sago. They are further classified into cereal starches and root starches. The characteristics of the natural starches are changed by chemical or enzymatic action and the products of these reactions are termed modified starches. This group includes dextrins, acid-modified starches, oxidized starches, starch esters, starch ethers, dialdehyde starches, and cationic starches.
The cereal starches, such as maize, wheat, rice and sorghum, are recovered by several processes, of which the wet milling is by far the most important. Other starches include that of potato & tapioca plant.
Physical and chemical properties of starch vary according to the raw material from which it is derived. Starch has many industrial applications in industries like textile, food, paper, pharmaceutical, in the manufacture of glucose and dextrose by hydrolysis, manufacture of modified starches, etc.
There are many units as at present in the country producing starch from Maize and three units producing starch from Tapioca in the organized sector. The capacity for starch from Maize accounts for more than 80 per cent of the installed capacity in the organized sector.
As against the organized sector, there are a number of units in the small and cottage sector producing starch mainly from tapioca.
As regards glucose it is produced in solid as well as liquid form. The production of glucose is not possible in the small sector and therefore its production is not as widely spread as that of starch. Eight units manufacturing starch in the organized sector also produce liquid glucose simultaneously.
There are many units as at present in the country producing starch from Maize and three units producing starch from Tapioca in the organized sector. The capacity for starch from Maize accounts for more than 80 per cent of the installed capacity in the organized sector.
As against the organized sector, there are a number of units in the small and cottage sector producing starch mainly from tapioca.
As regards glucose it is produced in solid as well as liquid form. The production of glucose is not possible in the small sector and therefore its production is not as widely spread as that of starch. Eight units manufacturing starch in the organized sector also produce liquid glucose simultaneously.
There is an ample space for new entrepreneurs to venture into this field.
Cost Estimation:
Capacity : 30000MT Maize Starch
600 MT Liquid Glucose
3900 MT Dextrose Monohydrate
300 MT Dextrose Anhydrous
17100 MT Sorbitol
150000 Kg/Annum Vitamin C
Plant & Machinery : 780 Lakhs
Cost of Project : 2590 Lakhs
Rate of Return : 42%
Break Even Point : 56%
High Fructose corn Syrup (HFCS)
Fructose is a simple monosaccharide found in many foods. It is a white solid that dissolves readily in water. Honey, tree fruits, berries, melons and some root vegetables, contain significant amounts of the fructose derivative sucrose (table sugar). Sucrose is a disaccharide derived from the condensation of glucose and fructose.
Crystalline fructose and high-fructose corn syrup are often confused as the same product. Crystalline fructose, which is often produced from a fructose-enriched corn syrup, is indeed the monosaccharide. High-fructose corn syrup, however, is usually considered to be a mixture of nearly equal amounts of fructose and glucose.
High fructose corn syrup provides sweetness intensity equivalent to sugar. High fructose corn syrup can replace sugar in one-for-one proportions. The sweetness profile of high fructose corn syrup enhances many fruit, citrus and spice flavors in beverages, bakery fillings and dairy products.
High fructose corn syrup is composed of either 42 percent or 55 percent fructose, with the remaining sugars being primarily glucose and higher sugars. In terms of composition, high fructose corn syrup is nearly identical to table sugar (sucrose), which is composed of 50 percent fructose and 50 percent glucose. Glucose is one of the simplest forms of sugar that serves as a building block for most carbohydrates. Fructose is a simple sugar commonly found in fruits and honey.
High fructose corn syrup is used in foods and beverages because of the many benefits it offers. In addition to providing sweetness at a level equivalent to sugar, High fructose corn syrup enhances fruit and spice flavours in foods such as yogurt and spaghetti sauces, gives chewy breakfast bars their soft texture and also protects freshness. High fructose corn syrup keeps products fresh by maintaining consistent moisture.
The industry responses towards substitution of sugar by high fructose corn are positive provided
(a) it does not interfere with the product quality;
(b) regular supply of HFS is ensured;
(c) its use offers a price advantage over sugar;
(d) it does not change colour on heating;
(e) preservative qualities for the products is as good as in the case of sugar;
(f) there is no objection in using HFS by FPO or other food related enforcement agencies.
HFS can replace sugar in industrial and domestic applications. Among industries, the major consuming sectors include bakery, confectionery, processed foods, beverages, soft drinks, ice creams, baby foods.
Now-a-days the demand for HFCS is increasing day by day, so there is wide scope for new entrepreneurs to venture into this project.
Cost Estimation:
Capacity : 37500 MT/Annum (High Fructose Corn Syrup)
15000 MT/Anuum (Gluten)
Plant & Machinery : 2314 Lakhs
Cost of Project : 3430 Lakhs
Rate of Return : 46%
Break Even Point : 33%
Corn Processing Plant (For Glucose Syrup & Fructose)
Glucose Syrup is a clear, colourless, viscous solution making it compatible with the physical properties desired in the end products chemically, glucose syrup has functional properties such as high fermentability, viscosity, humectancy - hygroscopicity, sweetness, colligative properties and its role in maillard's reaction. Glucose syrup is one of the main products of photosynthesis and starts cellular respiration in both bacteria and archaea.
Fructose is a simple monosaccharide found in many foods. It is a white solid that dissolves readily in water. Honey, tree fruits, barriers, melons, and some root vegetables, contain significant amounts of the fructose derivative sucrose. Sucrose is a disaccharide derived from the condensation of glucose & Fructose.
Fructose corn syrup is a sweetener made from corn and can be found in numerous foods and beverages on grocery store shelves. High fructose corn syrup is composed of either 42 or 55 percent fructose with the remaining sugars being primarily glucose and higher sugar. It terms of composition, high fructose corn syrup is nearly identical to table sugar, which is composed of 50 percent fructose and 50 percent glucose. Glucose is one of the simplest forms of sugar that serves as a building block for most carbohydrates. Fructose is a simple sugar commonly found in fruits and honey. High fructose corn syrup is used in foods and beverages because of the many benefits it offers. In addition to providing sweetness at a level equivalent to sugar, high fructose corn syrup enhances fruit & spice flavours in foods. Such as yogurt and spaghetti sauces, gives chewy breakfast bars their soft texture and also protects freshness. Fructose corn syrup keeps products fresh by maintaining consistent moisture.
In Indian food market is poised to grow two fold by in the coming years. At a compound annual grow rate of 4.1%. The steady growth of the Indian economy & the improving life style of Indians have been instrumental in this growth.
So, there is good scope in future for these type of plants.
Cost Estimation:
Capacity : 42000 MT/Annum (Corn Processing)
125 MT Glucose Syrup Per Day.
125 MT Fructose Per Day.
Plant & Machinery : 430 Lakhs
Total Capital Investment : 1 Million
Rate of Return : 39%
Break Even Point : 46%
Hydraulic Hoses and Clamping
Hydraulic hoses are mostly used in the supplying of water in the field of agriculture and fire brigade etc. Basic raw materials, which needed to manufacture hoses, are available in India. Manpower is cheaply available in our country. Along hydraulic hoses, clamps are needed. Clamps are needed for connecting the hydraulic hose. Clamps are made from metallic sheet by the application of mechanical press. There is good market growth of hydraulic hose. It has good market demand. There is little environmental which is prevented by taking proper step. Any new entrepreneur may enter into this production field.
Cost Estimation :
Plant Capacity : 198 Meters/day (hose pf I.D. =10 mm)
Plant and Machinery : Rs. 34 Lakhs
W.C. for 3 months : Rs. 28.39 Lakhs
Total Capital Investment : Rs. 1Crore
Rate of Return : 44.5%
Break-Even Point : 64.6%
Conveyor Belting
Rubber belting are mainly used for two purposes namely, conveying and transmission. Conveyor belts are used for conveying various items such as coal, ash, ore, grain, sand, packed goods and other industrial inputs and outputs. They are used in elevators also employed for lifting the passengers at railway stations and airport etc. Conveyor beltings are produced in long lengths, are wide and run at slow speeds over large rollers. Transmission belts are used for knives from the electrical motor or diesel engines to machine in operation for production. It is only used on the flat plies of different sizes and specifications to confirm the efficient load factors etc.
India manufacture belts upto 1500 mm width. The quality of the product is also satisfactory. Inspite of that some special types of rubber Convoyer Belts are being imported. There is good scope for new investment in this field. Any entrepreneur can invest in this project.
Cost Estimation
Plant Capacity : 400 MT/Day
Plant & Machinery : 106 Lakhs.
Total Capital Investment : 389 Lakhs
Rate of Return : 30%
Break Even Point : 48%
Automatic Fan Belts
India is one of the leading countries for rubber products. Fan belts are essentially used in automobile sector to transmit the power from one pulley to another pulley. The belt which transmits power is called power transmission belt. The production of fan belts started in India since long back. It is being produced in large and small scale sector both. At present, there are about 16 units in the organised sector and many units in the small-scale sector manufacturing fan belts in India. The production has increased continuously during last decades growth rate of 10.29 percent per annum. The demand for fan belt in future will increase with the increase in the growth of their main endues segment i.e. industrial sector and automobile industry. The industry sector is growing at a quite good rate. So there is good scope for new investment in this industry. You can come in this field.
Cost Estimation :
Plant Capacity : 200 Kgs/Day
Plant & Machinery : Rs. 13.5 Lakhs
Working Cap. for 3 Months : Rs. 14.1 Lakhs
Total Capital Investment : Rs. 44.4 Lakhs
Rate of Return : 45.43%
Break Even Point : 54.42%
Conveyor Rollers/Idlers
Mechanical conveying is the most widely used form of materials handling in industry. Although a large number of devices are available, most systems conform to the basic elements in which belts, chains, or moving flights are used to move materials.
Mechanical conveyor has advantages in terms of the ability to effect accurate control in the monitoring of material from one process to another. Further, by careful selection of construction materials, it is possible to design systems to meet a wide variety of operating conditions including corrosive environments and extremes of temperature.
Belt conveyors are the mostly used and versatile mode of mechanical conveying systems. These are able to handle larger mass over longer distances and at a lower cost than most forms of conveying system. A belt conveyor is an endless length of flexible material stretched between two drums and supported at intervals. The importance of conveyor belt idler rolls within materials handling has led to the development of shell tubing and bearings specially designed for idler rolls. It is therefore reasonable to except idler manufacturers to utilize these components.
However, the life and performance of these components in the finished idler roll will be largely dependent upon the design of the roll, the methods of manufacture and the fits and tolerances employed.
The power absorbed by conveyor idler rolls is an important factor governing the selection of items such as motors, gearboxes, belting etc.
Conveyor Idlers are generally manufactured in steel with bright bar shaft, single piece frame fitted with bearings for carrying, impact, and return Rollers.Conveyor belt idlers are a vital component of the economic development of the country. It is critical to the development of infrastructural sectors, such as coal and other minerals, irrigation and power, ports, steel, fertilizers, road construction, urban development and the like.
India is fast emerging as a global manufacturing hub. India has all the requisite skills in product, process and capital engineering, owing to its long manufacturing history and higher education system. India's cheap, skilled manpower is attracting a number of companies, spanning diverse industries, making India a global manufacturing powerhouse. Thus the market for conveyor belt idler in the coming years is very bright as industries will cater the need for material handling. New entrepreneurs should venture into this field.
Cost Estimation:
Capacity : 7500 MT/Annum
Plant & Machinery : 77 Lakhs
Cost of Project : 327 Lakhs
Rate of Return : 42%
Break Even Point : 75%
Chicken/Mutton (Sheep Meat) Processing
Meat is a good source of high quality and readily digestible proteins, fats, phosphorus, iron and Vitamins. Livestock and poultry are the main sources of meat and meat products Poultry industry has emerged as an important supplementary occupation of the farming community. The product has a very good market potential and its demand is increasing rapidly and is expected to be multi-fold in the near future.
Cost Estimation:
Plant and Machinery : Rs.14 Lakhs
Project Cost : Rs.153 Lakhs
Rate of Return : 62.72%
Pork Products
Meat processing industry is one of the growing industries among the food products. Various pork Products are used as nutritious meat and food products. It may be used as nitrogen sources. Demand is increasing of processed meat around 10-15% per annum in Europe. In India it has demand in the defence, specific hotels and in advanced Society. In India demand of fresh meat is increasing 5-8% per annum. There is very good scope for exporting of processed meat. There is bright scope for new investment. Any entrepreneur can enter in this field.
Cost Estimation:
Plant Capacity : 5.00 MT/day
Plant & Machinery : 96 Lakhs
Cost of Project : 494 Lakhs
Rate of Return : 48%
Break Even Point : 33%
Rock Wool Base Slag
There has been a little war going on out there b/w silicon and titanium, both metallic components of the sands around the world. Not long ago, the very year, the commonwealth scientific and industrial research organization of Australia, uncovered the excellent filtration properties of what they called ‘nano-porous' titanium dioxide molecules. There will gradually replace silicon sand as filtration medium in many applications in the near future- especially where pollution control is improved, quite like aluminium is very slowly ousting steel from the latter's smaller bastion. Aluminium titanate has been proven to be a better refractory material in die-costing applications, as compared to calcium silicate and fused silica, which are conventionally used. If the cost of these three applications are to be compared, it is obvious that silica and calcium oxide are much more cheaper then alumina & titania. There is demand of rock wool in our country of about more than 1500 MT per annum. Increase in demand is about 18% per annum.In future demand of rock wool will increase by 2% per annum from the persent demand.
Cost Estimation:
Plant Capacity : 1 MT/Day
Plant & Machinery : 18 Lakhs
Total Capital Investment : 63 Lakhs
Rate of Return : 50.99%
Break Event Point : 46.13%
Hydraulic Hoses for Heavy Earth Movers
Hydraulic hoses are largely used in the supplying of water from one place to another place, in the agriculture in the fire brigade, in the civil construction area etc. There is wide varied diameter are used in the manufacturing processes of hydraulic hose. It should not corrosive or not attached the human body any way. It should work at minimum temperature 50°C.
The basic raw materials used are (1) wires and (2) fiber reinforced rubber. There is good market growth of hydraulic hoses and market demand is meet up by indigenous production. There is almost no environmental pollution problem. Any new manufacturer may enter into the production will be successful if he manufacture quality product with economic price. There is good scope for this business days to come.
Cost Estimation:
Plant Capacity : 150000 Meter/ Annum
Plant & Machinery : 18.77 Lacs
Cost of project : 54 Lacs
Rate of Return : 37.92%
Break Even Point : 55.32%
Hydraulically Regulated Door Closer
Door closers are very commonly seen in most of the modern residential houses, office building, hospital, hotels & restaurants, Railway station and almost all the modern buildings. Door closers are connected with door case and the door top when the door is opened by the pull/push of the entrant by application of force on the door handle, the door automatically closes with out noise if the door is provided with a door closer device. The demand for door closer is totally depends upon new building and house. In India, the demand for houses is forever increases; automatically door closer demand is also forever increase. The new entrepreneur can well venture in this field and get good profit.
Cost Estimation:
Plant Capacity : 20 Pcs./Day
Plant and Machinery : Rs. 6.0 Lacs
W.C. for 3 Months : Rs. 5.5 Lacs
Total Capital Investment : Rs. 21.3 Lacs
Rate of Return : 45.07%
Break Even Point : 52.81%
Forging on Open Die Hammers
Forging is the name for processes whereby the work piece is shaped by compressive forces applied through various dies and tools. It is one of the oldest metalworking operations. Forging was first used to make jewellery, coins, and various implements by hammering metal with tools made of stone.
Forging may be done at room temperature (cold forging) or at elevated temperatures (warm or hot forging, depending on the temperature). Because of the higher strength of the material, cold forging requires greater forces, and the work piece materials must have sufficient ductility at room temperature. Cold-forged parts have good surface finish and dimensional accuracy. Hot forging requires smaller forces, but dimensional accuracy and surface finish are not as good. Forgings generally require additional finishing operations, such as heat treating to modify properties and machining for accurate finished dimensions.
The forging process can create parts that are stronger than those manufactured by any other metalworking process. This is why forgings are almost always used where reliability and human safety are critical. Forging parts are normally component parts contained inside assembled items such an airplanes, automobiles, tractors, ships, oil drilling equipment, engines, missiles and all kinds of capital equipment - to name a few.
Forged parts vary in size, shape and sophistication - from the hammer and wrench in toolbox to close tolerance precision components. Some of the largest customer markets include: aerospace, national defense, automotive, and agriculture, construction, mining, material handling, and general industrial equipment. Even the dies themselves that make forgings (and other metal and plastic parts) are forged.
Open-die forging can produce forgings from a few pounds up to more than 150 tons. Called open-die because the metal is not confined laterally by impression dies during forging, this process progressively works the starting stock into the desired shape, most commonly between flat-faced dies. In practice, open-die forging comprises many process variations, permitting an extremely broad range of shapes and sizes to be produced. In fact, when design criteria dictate optimum structural integrity for a huge metal component, the sheer size capability of open-die forging makes it the clear process choice over non-forging alternatives. At the high end of the size range, open-die forgings are limited only by the size of the starting stock, namely, the largest ingot that can be cast. Practically all forgeable ferrous and non-ferrous alloys can be open-die forged, including some exotic materials like age-hardening super alloys and corrosion-resistant refractory alloys.
The Indian forging industry meets the major requirements of steel forgings for the automobile industry. There is a very good potential for export of steel forgings.
Cost Estimation:
Capacity : 3000 MT/Annum (Steel forging various grade)
Plant and Machinery : 1211 Lakhs
Cost of Project : 1843 Lakhs
Rate of Return : 42%
Break Even Point : 55%
Disposable Plastic Syringes
A plastic syringe is a cylindrical tool used for many purposes, from medicine to mechanics, to arts, crafts and refilling inkjet printer cartridges. Disposable plastic syringes are a great innovation in the field of medical equipment. Disposable needle is widely used by doctors for injection purpose with the help of syringes. A disposable plastic syringe is one of the fastest ways to administer life saving drugs and vaccinations to a patient. The major advantage of using disposable syringes is that no infection is transmitted since the injection is disposed off immediately after use. With the increase in population in our country, requirement of medicine and injections have increased too many folds.
A disposable syringe made of plastics, for medical purposes, consisting of a piston provided with a plunger shaft and a barrel provided at the bottom with a tapered chuck for the attachment of a cannula needle, in which the plunger shaft is guided in the barrel at a distance from the barrel wall, and the piston is releasable attached to the plunger shaft. These syringes typically come with measurements clearly marked (such as 1ml, 2ml, 5ml etc) to make sure the patient receives the proper dosage. The hypodermic needles are normally made from a stainless-steel tube through a process known as tube drawing where the tube is drawn through progressively smaller dies to make the needle. The end is bevelled to create a sharp pointed tip letting the needle easily penetrate the skin. The diameter of the needle is indicated by the needle gauge. Various needle lengths are available for any given gauge. Disposable needles are embedded in a plastic or aluminium hub that attaches to the syringe barrel by means of a press-fit or twist-on fitting. These are sometimes referred to as "Luer Lock" connectionsThe main machinery used for the production of disposable syringes are Injection moulding machine, injection moulds, assembling devices, foil welding machines to name a few.
Plastics remain at the forefront of medical innovations. The Indian market is expanding in all directions as a result of better affordability, greater health consciousness and expanding medical service institutions. With a population of 1.15 billion, India will need to at least 2 million beds in the next 10 years in order to attain a modest target of 2 per 1000 of population. With a total healthcare value of USD 400 billion, the potential for Medicare equipment is, indeed large. The healthcare sector is one of the most challenging and fastest growing sectors in India. Revenues from the healthcare sector account for 5.2 per cent of the GDP, making it the third largest growth segment in India.
According to McKinsey & Co. a leading industrial and management consulting organization, the Indian healthcare sector, including pharmaceutical, diagnostics and hospital services, is expected to more than double its revenues to Rs 2000 billion by 2010. Expenditure on healthcare services, including diagnostics, hospital occupancy and outpatient consulting, the largest component of this spend is expected to grow more than 125% to Rs 1560 billion by 2012 from Rs 690 billion now. The disposable syringes market has now self-destructing or auto-disable (AD) syringe as a safe bet against re-use and spread of HIV, hepatitis and other infections. The national immunization policy has adopted the non-reusable, self-breaking syringes, though many States are yet to follow suit for the curative injections.
With the development of pharmaceutical industries the use of syringes and disposable needles will also develop. About 70% pharmaceutical industries are in small-scale sector. Disposable syringes are becoming more popular in the medical world due to its lower cost and higher accuracy. Plastic can be used in place of metal without any problem. The procedure is also relatively easy and cheaper. Besides growing market in our own country there is great potential for the export to nearby countries. Apart from the electronic instruments and major equipment, substantial progress has been registered in the area of a number of medical accessories and consumables. These include disposables - syringes, blood bags, cannulae, IV fluid sets, gloves. In most of these items, while the demand is increasing fast, India is becoming increasingly self-sufficient. Fairly large quantities are also exported. The market for non-premium equipments, appliances and disposables is, however, dominated by the domestic manufacturers, while foreign suppliers and Indian companies with foreign alliances dominate the high-end hi-tech medical equipment and appliances. Among the leading providers of advanced products are Siemens, GE, Philips Medical Systems, Toshiba, Hitachi and Boston Scientific.
There is a large untapped potential in this sector. Nonetheless, it is crystal clear that with the fast commercialization process of the sector and upgradation of medical facilities, the potential is sky high.
Cost Estimation:
Capacity : 22500000 Nos. 5 Ml Size/Annum
22500000 Nos. 10 Ml Size/Annum
Plant & Machinery : 636 Lakhs
Cost of Project : 837 Lakhs
Rate of Return : 46%
Break Even Point : 42%