1.tyre retrading

NSIC Project Profiles

1. INTRODUCTION

2. MARKET

3. MANUFACTURING PROCESS

4.

1680 Tyres

Rs.

680 Tyre

5. PROJECT COST/CAPITAL INVESTMENT

S.No Description Amount Rs.

1 Preliminary & Preoperative Expns

5000

2 Fixed Capital 165000

3 Working Capital for

1 month(s) 87000

Total Project Cost 257000

6. MEANS OF FINANCE

S.No Description %age Amount Rs.

1 Promoter Contribution 15% 38550

2 Subsidy 20% 51400

3 Term Loan 65% 167050

Total 257000

The manufacturing of retreading rubber is done in the following stages: I)

Compounding: Removing unwanted materials such as nails, rivets etc. Ii) Mixing:

Reclaimed rubber and oils; iii) Extruding: The mixture of rubber so obtained is put

into extruder to form rubber sheets. iv) Retreading: Before retreading tyre is buffed

and it is allowed to stick properly. Tyres are buffed properly to remove all undesired

rubber and to clean surface. The retreading rubber is now put on its outer surface

with an adhesive solution.

TYRE RETREADING UNIT

Tyre Retreading is a new technology, where the old ty res are made serviceable by

removing worn out and damaged treads and replacing it with new treads. New treads

are avialable in the market in form o frolls and in breif, in can be put on old tyre and

cured with the help of steam. Similar to the new tyres, the treated tyres can be very

well used on all vehicles, irrespective of light or heavy vehicles. With a safe and new

technology, which is being adopted now-a-days, it will be more easy and economical

to produce tyres.

As day by day, more and more vehicles are running on roads, hence more tyrs are

required for replacement. With further growth of economy, there will be an increrase

in transport as well as passenger vehicles and hence more tyres will be required.

Hence, there is a very wide scope for retread tyres as an original replacement.

Capacity

Selling Price

PRODUCTION CAPACITY PER ANNUM

NSIC Project Profiles

7. FINANCIAL ASPECTS

A. FIXED CAPITAL

i. Land and Buildings

Rented 2000 per month

ii. Machinery and Equipment

S.No Description Qty. Rate Amount Rs.

1 Vulcaniser

2 Mixer

3 Tools & Furniture

4 0

0

1 100000 1000001 40000 400001 25000 25000

Total 165000

B. WORKING CAPITAL

i. Salaries & Wages (per month)

S.No Description Nos. Sal/mon. Amount Rs.

1 Supervisor/Entrepreneur

2 Skilled Workers

3 Unskilled Workers

4

5

1 3500 35002 2500 50003 2000 60000 00 0 0

Total 14500

ii. Raw Material (per month)

S.No Description Unit Qty. Rate Amount Rs.

1 Rubber

2 Solvent

3 Calcium

1 55000 550001 8000 80004000 4000

0 0

0

Total 67000

iii. Utilities (per month)

S.No Description Unit Amount Rs.

1 Power LS

1000

2 Water LS

500

Total 1500

NSIC Project Profiles

iv. Other Expenses (per month)

S.No Description Amount Rs.

1 Postage & Stationery Expenses

2 Transportation Expenses

500

3 Advertisement Expenses

4 Consumable Stores

1000

5 Miscellaneous Expenses

500

Total 2000

v. Total Working Capital (per month)

S.No Description Amount Rs.

1 Rent 2000

2 Salaries and Wages 14500

3 Raw Material 67000

4 Utilities 1500

5 Other Expenses 2000

Total 87000

8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs.

1 Total Working Capital 1044000

2 Depreciation @ 15% 24750

3 Interest @ 12% 20046

Total 1088796

9. TURNOVER (PER YEAR)

S.No Description Unit Qty. Rate Rs. Amount Rs.

1 Tyre Retreading Tyres 1680 680 1142400

1142400

10. FIXED COST (PER YEAR)

S.No Description Amount Rs.

1 Depreciation 24750

2 Interest 20046

3 Rent 24000

4 Salaries & Wages @ 40% 69600

5 Other Expenses incl. Utilities @ 40% 16800

Total 155196

11. PROFIT ANALYSIS & RATIOS

1 Net Profit Rs. 53604

2 Percentage of Profit on Sales 5%

3 Return on Investment 21%

4 Break Even Point 74%