Example Business-plan for production of polymer-sand drainage ducts

INITIAL INVESTMENT

The complete costs of the equipment set, including the cost of commissioning "turnkey" is: 2 627 254.00 rubles excluding VAT.

Description	Price, rub.
Commissioning works	50 000,00
HMU	567 000,00
Press	1 116 754,00
«Water Drainage Duct 68» Mold	295 000,00
Crusher for raw materials - waste*	385 000,00
Mixer of 1 m3	213 500,00
TOTAL	2 627 254,00

- Crusher for plastic may not be necessary when you use ready-made primary or secondary polymers, but it will lead to higher prices for the product cost;

- Mixer can be replaced with cement-mixer, but with the loss of productivity.

WAGES FUND

To use the site only three people are enough - manager (25 000 rubles), HMU operator (20 000 rubles), laborer (20 000 rubles). Wages fund is of 65 0000 rubles per month for a single shift and 130 000 rubles. at the rate of 2 shifts.

Thus the cost of wages per 1 ea is of 12 rubles.

UST - 30%, giving 3.6 rubles per 1 ea in the price of finished products.

REQUIRED PRODUCTION AREAS

To accommodate the equipment and raw materials storage areas and products you need to provide about 100 m² of production space and 100 m² for warehouse (it may be outdoors). Industrial premises need not be heated, heating occurs due to heat generation by the equipment. Finished products are stored in the shop, and then moved to the warehouse.

When the rental rate is of 100 rubles per sq.m. then rental cost of production areas will not exceed 10 000 rubles. Thus the rental cost per 1m² of items is of 2.08 rubles.

 

COST OF ENERGY AND MATERIALS

Total cost of raw material (polymer+ sand + pigment) per ton is 5000 rubles.

Weight of 1 tray = 4.3 kg. Thus the raw material cost per 1tray is of 21.5 rubles.

POWER CONSUMPTION per shift

• Crusher of 300 kg/h capacity consumes 22 kW/h. For production of a mixture in an amount of 1548 kg you need 380 kg of polymer. To make it the crusher will work for 1.3 hour and consume energy of 28.6 kW.
• HMU - 29 kW/h while heating, while working around the clock with heated HMU consumption reduces 4 times, i.e.: 7.25 kW х 24 hours = 174 kW/day (87 kW per shift)
• Press – 11 kW/h. When molding the product the press program is designed for consumption of electrical energy in the lifting and lowering operation of the upper punch, while molding the electrical energy is not consumed. Running time of the slide is 40 seconds. During the day 360 pcs x 40 seconds = 14 400 s. = 240 min. = 4 hours of press operation
• Consumption of 44 kW per day.
• Mixer - 5.5 kW/hour, 1 batch - 3 min. Stirs 0.5 tons per one operation of mixing. During shift it produces 1548 tonnes of mixture for 360 trays. During the day 10 min. Power consumption 1 kW.
• Lighting - 12 kW/h

Total energy consumption per day is of 259.6 kW/day, shift of 12 hours takes 129.8 kW.

Cost of electricity for 1 kW/h - 4.03 rubles. Thus, the cost of electricity is 523.1 rub. for 12 hours when producing 180 pieces of trays. Cost per 1 tray will be 2.91 kopecks.

Depreciation of equipment is set on their own.

 

Cost of 1 tray, rub.

Type of costs	per 1 ea
Raw materials	21,5
Electric power	2,91
Salary	12
UST 30%	3,6
Rent of premises	2,08
Depreciation of equipment	1,04
TOTAL	43,13

FINAL CALCULATIONS

Description	Duct
Cost of 1 piece, rub.	43,13
Overhead costs, rub. (1%)	0,43
Market price of 1 piece, rub.	200
Profit before tax for 1 piece, rub.	156,44
Income tax (6%), rub.	12
Profit of 1 pc, rub	144,44
Profit per day, totally, rub. at 100% of sales	51 998,4
Return, %	72,2
Payback period, days	50

Net profit for the day 51 998,4 rubles. Gross revenue per day 200 rub.x 360 pcs = 72,000 rubles. Net income / Gross Revenue x 100 Return is 72.2 %

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