Project Profile- updated

1 NAME OF THE PRODUCT ; Hospital Furniture

2 PRODUCT CODE 79518 Hospital furniture

79519 TROLLEYS -IRON AND STEEL- HOSPITAL
79520 STRETCHERS -IRON & STEEL

36102 Furniture
primarily of
metal,
manufacturing

3 QUALITY AND STANDARDS

IS: 3998-1966,IS: 3663-1966, IS:4494-1968, IS-
4033-1967 will be followed 2. IS : 4036- 1967 Trolley , Patient
1. IS : 4035- 1967 Trolley, Stretcher
2. IS : 4036- 1967 Trolley , Patient
3. IS : 4037-1967 Stretcher and Stretcher Carrier
4. IS: 4455-1967 Trolleys Solid Linen
5. IS : 6207-1971 Trolleys for Oxygen Cylinder
6. SI : 4267-1967 Stand, Wash Hand Basin
7. IS: 4266-1967 Lockers, Bedside
8. IS : 4458-1967 Bedside Screens
9. IS :4033-1968 General Requirements for Hospital Furniture

4 PRODUCTION CAPACITY ;
(Per annum)
QUANTITY ; 5600 Nos.
Rs. 13015000

5 MONTH AND YEAR OF PUBLICATION: March, 2011

6 Prepared By MSME-Development
Institute,
22 Godam, Jaipur
Ph. - 0141-2212098
Fax-0141-2210553
E Mail- dcdi-jaipur@dcmsme.nic.in
web- msmedijaipur.gov.in
 Hospital Furniture
1. Introduction :- Hospital Furniture iclude items i.e. Trolleys, Stretches, Trolleys
Patient, Stretcher carriers, Trolleys solid Linen, Stand Wash, Hand Basins,
Lockers, Bedside, etc.. . At present the above items are widely used in different
government Hospital,private sector Hospital, etc.

2. Market Potential :- There is a huge market of Hospital Furniture.With the

rapid growth in the number of Private and govrnment Hospital, and emphasis
being laid to provide more and better Medical facilities in the village & small
towns, the demand is likely to increased further.

2.1. Demand :- However, the growth rate is expected to be more than 5 to 8% per
year and as such it may be ideal for the existing steel furniture manufacture units
to take up this activity for not only as a diversification but also better capacity
utilization by installing a few balancing equipments.

3. BASIS AND PRESUMPTIONS;

(1) The scheme is based on single shift of 75% efficiency considering 8

working hours/day, 25 days/month and 300 days per annum.
(ii) Labour wages has been taken as per market rate. It is likely to vary
depending upon the location of the project.
(iii) Rate of interest has been taken 12% on an average on fixed and working
capital. It is likely to vary due to financial outlay and the location of the unit.

(iv) The operative period of the project is estimated to be about 10 years

considering technology obsolescence.
(v) Value of machinery & equipment is estimated on the basis of prevailing
cost of the local mkt.

4. IMPLEMENTATION SCHEDULE ;
S.No. Activities Period (in
weeks)
1 Preparation of project report and selection 2
of site
2 Registration 2
3 Application for Electricity Connection 1
4 Availability of finance 6
5 Procurement of machinery 1
6 Electrification & installation 2
7 Recruitment of staff 1
8 Trial run 1
Total 16

5. TECHNICAL ASPECTS:

i) MANUFACTURING PROCESS :
 The measurement of pipes, sheets, angle, etc is done and cut accordingly.
The pipes, sheets are given proper shapes on power presses or bended
with the bend machine. Then operations like welding, grinding, fitting,
finishing and painting are performed on different machines/equipments. If
required by the customer, powder coating has to be done on 6 tank
system or it can be done on jobwork basis from the out side.

ii) QUALITY CONTROL & STANDARD

The products will be made as per Customer Requirement, to maintain
quality however folowing IS Specification have to be followed for hospital
furniture

IS 4035 1967 Specification for Trolleys,

Stretcher
IS 4036 1967 Specification for Trolleys,
Patient
IS 4037 1967 Specification for
Stretchers and Stretcher
Carriers
IS 4455 1967 Specification for Trolleys,
Soiled Linen
IS 6207 1971 Specification for Trolleys
for Oxygen Cylinders
IS 4266 1967 Specification for Lockers,
Bedside for Hospital Use
IS 4267 1967 Specification for Stands,
Wash Hand Basin
IS 4033 1968 General Requirements for
Hospital Furniture

iii) PRODUCTION CAPACITY 5600 Nos. 13015000 Rs.

(Annualy) :

iv) POWER REQUIREMENT : 20 HP

V) ENERGY CONSERVATION :
The following steps may be taken for the
conservation of energy :
1 Machinery and equipments, parts are revolving and reciprocating should be properly
lubricated from time to time with suitable
lubricant.
2 Lay out of unit should be in such a way that there is no back tracking of material.
3 All the electrical switches may be kept off when not in use.
4 Proper ventilation system should be kept during construction of building for maximum
5 Fluorescent tube with electronic chokes should be used for energy saving. Further,
recently development compact fluorescent tubes called (CFT) of 10W, 15W Philips/Glaux
make may be used for energy saving and decoration. These self ballast fluorescent
lamps are high efficiency replacements of ordinary bulbs.

6 FINANCIAL ASPECTS :
 a) LAND AND BUILDING:
i) Land : The requirement of land for the
proposed unit would be around 1500
Sq.Yd.

The land & Building will be on rent.@30 1000Sq. Yd. 30000

per Sq. Yd..
TOTAL 30000

b PLANT & MACHINERY

Description of machine Qty. Price Amount

S.No.
1 Guilotino Shearing Machine treadle 1 25000 25000
operated 1200mm
2 Arc Welding Set Air Cool 350 Amp. 1 25000 25000
3 Arc Welding Set oil Cool 350 Amp 1 15800 15800
4 Hand Shearing M/c. 1 8000 8000
5 Hand Drill 1 3600 3600
6 Bench Drilling M/c. 1 12500 12500
7 Air Compressor with Spray Gun 1 18,000 18000
8 Hand Grinder 4" 2 6400 12800
9 Spot Welder 10 KVA 1 73000 73000
10 Cleaning Pickling, Phosphating Tank 1 300000 300000
2.5 X 2 X 2 MTS.
11 Power Pressed 40 Tons Capacity 1 150000 150000
12 Hand Fly Press No. 5 1 12000 12000
13 Central Lathe 1800 mm 1 70000 70000
14 Pipe Bending M/c. 1 35500 35500
Total 761200
15 Installation & Electrification @ 10% 76120
TOTAL 837320
Office Equipment, Dies & Tools LS 50000 50000
c Total Investment In Plant & 887320
machinery
Charges required for Getting 25000
Electricity Connection
d Total Investment In fixed assets 912320
i

WORKING CAPITAL PER MONTH

S.NO. Personnel
1 DESIGNATION No. Salary Total (Rs.)
2 Manager Self 1 8000
3 Supervisor cum clerk 1 6500 6500
4 Skilled Worker 3 6000 18000
 5 Semi skilled worker/ 3 5000 15000
Helper 1 4000 4000
Total 51500
Additional Perquisites @ 15% 7725
Total Expenditure in Salary & Wages 59225
ii
Raw Material

S.No. Particular (Indigenous) Qty Rate Value (Rs.)

1 Welding electrodes (Pkts) 30 250 7500
2 CRC Sheet 18- 22 SWG (Ton) 8 48000 384000
3 Angle, Channels, Tubes & Rods, Pipe 1 40000 40000
etc. (In Ton)
4 Aluminium Sheet 0.7 M/T 1 25000 25000
5 GI Sheet in M.T. 0.55 55000 30250
6 Canvas & canvas Bags L.S. 100000
7 Caster Wheels L.S. 100000
8 Surface traetment and Electroplating L.S. 10000
Chemicals
9 Other consumables etc. L.S. 50000
TOTAL 746750

iii Utilities Value (Rs.)

1 Power ( 42 unit per day) 5985 5985
2 Water LS 500
TOTAL 6485
iv Other Contingent Expenses

1 Postage and stationary 5000

2 Office Consumable stores 500
3 Transport charges 4000
4 Internet & Telephone charges 1500
5 Traveling expenses 2500
6 Miscellaneous expenses 1000
7 Insurance 2500
TOTAL 17000

v Total Recurring Expenditure :

S.No. Description Cost
1 Personnel 59225
2 Raw material 746750
3 Utilities 6485
4 Other Contingent Expenses 17000
5 Rent 30000
TOTAL 859460

vi Total working capital for 3 months : Rs. 2578380

e Total Capital Investment :

i Fixed Capital 912320
ii Working Capital for 3 Months 2578380
Total Capital Investment : 3490700
Total Capital Investment Say Rs.34,30,000/-
7 FINANCIAL ANALYSIS
1 Cost of Production (Per year) :

i Total recurring cost : 10313520

ii Depreciation of machinery and equipment @ 10% 83732
iii Interest on total Capital investment @ 12% 418884
iv Depreciation of tools and office equipment @ 15% 7500
Total : 10823636

2 Total Sales (Per annum)

Products Qty. in Nos. Rate Value (Rs.)
1 Sale of stretchers 700 1900 1330000

2 Sale of Lockers bedside 700 1500 1050000

3 Sale of Trollers stretchers 700 3400 2380000

4 Sale of Trolleys Patient 700 4300 3010000

5 Sale of Trolleys For Cylinders 700 1000 700000

6 Sale of Trolleys Soiled Linen 700 1900 1330000

7 Table bed side 700 4400 3080000

8 Sale of Stand wash Basins 700 150 105000

9 By Sale of Scrap 30000

TOTAL : Rs. 13015000

3 Net Profit (Per yr.) (Before tax)

Total turnover per yr.) -cost of production
per yr.)
= 13015000 -10823636 2191364

4 Net profit ratio :

Net profit × 100 = 2191364 x100 = 17%
Turn Over 13015000

5 Rate of return :
Net profit × 100 = 2191364 x100 = 63%
Total Investment 3490700
6 BREAK-EVEN POINT;
FIXED COST ;

1 40% salary & wages 284280

2 Depreciation on machinery & 83732
Equipments @ 10%
Depreciation of tools and office equipment 7500
@ 15%
3 Interest on capital investment @ 10% 418884
4 40% of other contingent expenses 69600
5 Insurance & Rent 390000
TOTAL 1253996
Net Profit (Per yr.) (Before tax) 2191364
BEP :
Fixed Cost × 100 = 36%
 Fixed Cost + Profit

A Supplier of Machine tools

1 M/s. Hindustan machine tools co., bellari Road, Bangalore

2 M/s. Vineet engineering works, Capital Building, Krushna Nagar Main Road, Near
Gokuldham Main Gate, Rajkot, Gujarat
3 M/s. Yogesh Tolaram Incorporation Plot No - 24, 22, Godam Industrial
Area, Road, No - 4, Kartarpura Industrial Area, Jaipur-302006
4 M/s. Ravi Power Press
G-19, Allied House, Shahzada Bagh,Old Rohtak Road, New Delhi -1100035

5 M/s. Laxmi Machinery, 47, Mandir madho bihari, Sansar Chandra Road, Jaipur

6 New Barma Machine industries , 98, east mohan Nagar, Amritsar.

7 M/s. Quality Machine Tools, No.25 J.C. Road, Near VSL Bldg., Bangalore-2
8 M/s. K.G. Khosla & Co., Mathuri Road, Badarpur, Delhi.
B Raw Material
1 Local Market.
2 JSW Steel Ltd., Village: Vasind, Taluka – Shahapur, Dist: Thane - 421604
(Maharashtra), Tel: 02527-220022 to 025
3 Aditya Steel Corporation 18,19,20 Arihant Tower, Malhotra Nagar Road
No 1, Vishwakarma Ia., Jaipur - 302013

iv