11 Disposable Syringes PRODUCT CODE
: N.A.
QUALITY AND STANDARDS
: As per drug control specification
PRODUCTION CAPACITY
: Qty. 2 ml 5 ml
MONTH AND YEAR OF PREPARATION
: January, 2003
PREPARED BY
: Small Industries Service Institute 4th Floor, Harsiddha Chambers, Ashram Road, Ahmedabad-380 014 Phone Nos. 275 40619, 27544248, 27543147
INTRODUCTION Disposable Syringes are made of plastic material and are used in the field of medical and veterinary science. Due to their availability in sterilized condition, ready to use, and cost effectiveness, disposable syringes are fast replacing the age-old glass syringes. Moreover, the horror of AIDS worldwide has almost dispensed with the reuse of syringes and the demand of disposable syringe has increased phenomenally. Disposable syringes are mostly injection moulded from polypropylene. Syringes are available in sizes of 1 ml, 2ml, 5 ml, and 10 ml, in a variety of designs and consist of either two or three components construction. The number and size of injection moulding machines required depend upon syringe construction, number of mould cavities, annual production.
Pieces 57.6 Lakhs 57.6 Lakhs
MARKET POTENTIAL Disposable syringe has a wide market potential. The age-old glass syringes are very fast becoming obsolete. In the Eastern Region of the country there is no unit manufacturing this product. Some of the units manufacturing this product are in other parts of the country. 1. Steryware, Faridabad (2) Cadilac (3) Dispovan, Faridabad (4) Cadilac hospital product, Ahmedabad (5) Surgiplus, Ahmedabad (6) Transplastic Pondicherry (7) Disposable mediate, Chennai (8) Suru Chemicals, Mumbai (9) Albert David, M.P. (10) Manoj Surgical, Indore. Some of these units are 100% export-oriented units. In view of the fast expanding market the prospects of disposable syringe are very bright.
B ASIS AND PRESUMPTIONS The profile is drawn on the basis of the following presumptions:
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D ISPOSABLE SYRINGES
Working hours/day
8 hours
Working days
25
Total No. of working hours 2400
5. Placement of order for delivery of M/c.
3-4
6. Installation of machines
4-5
7. Power connection
6-7 6-7
Working efficiency
75%
8. Trial run
Time period for achieving max. Capacity utilization
3rd year from the date on which Production will be started.
9. Commencement of production
Labour charges
As per minimum wages act of State Govt.
Margin Money
25% of Capital Investment Rate of interest on fixed 14% and working capital Operative period of the 10 years project Value of machinery and equipment is estimated on the basis of prevailing cost of the market.
IMPLEMENTATION SCHEDULE
TECHNICAL ASPECTS Process of Manufacture Production of disposable syringe requires special injection moulding machines and special moulds. M/s. Klockner Windsor has introduced Ferromatic Injection Moulding machine for this purpose. Raw material required is polypropylene. It is fed into the injection moulding machine and moulded in chilled condition to get better clarity. The moulded syringes is then assembled with the needle in automatic assembly machine. The whole assembly is then sterilized in sterilization plant using ethylene oxide. The completed syringe is then blister packed in automatic packing machine. Quality Control and Standards
Project implementation will take a period of 8 months from the date of approval of the scheme. Break-up of activities with relative time for each activity is shown below: Nature of Activities
9 onwards
Period (per month ) (Estimated)
The product should conform to drug control specification and drug license should be obtained for production of this item. Production Capacity (per month) 2 ml size- 4,80,000 Nos. 5 ml size- 4,80,000 Nos.
1. Scheme Preparation and approval
0-1
Pollution Control
2. SSI Provisional registration
1-2
No special pollution control measures are needed for manufacture of this item.
3. Sanction of loan
2-3
Energy Conservation
4. Clearance from Pollution Control Board
2-5
Proper maintenance of the power operated machines and judicial use of them will conserve energy.
D ISPOSABLE SYRINGES
FINANCIAL ASPECTS
B. Working Capital (per month) ( i ) Personnel
A. Fixed Capital (i) Land and Building
Area sq. mtrs.
Rented
(Rs.)
1000 350
Rented
20,000
Land Built up area
(ii) Machinery and Equipments Description
Qty. (Nos.)
Value (Rs.)
(a) Production Unit
Designation
Nos.
Salary (Rs.)
Total (Rs.)
Works Manager
1
10,000
10,000
Sales Executive
1
5,000
5,000
Chemist
1
5,000
5,000
Accountant
1
5,000
5,000
Steno/Clerk
1
3,000
3,000
Peon/Watchman
2
1,500
3,000
Operators
6
4,000
24,000
Semi-skilled workers
4
2,000
8,000
Unskilled workers
8
1,500
12,000
Zigma Injection Moulding Machine
1
24,50,000
Sterilization plant (Ethylene Oxide)
1
6,50,000
Blister Packing Machine
1
9,00,000
Automatic Packing Machine
1
25,00,000
Scrap Grinding Machine
1
65,000
Weighing Scale
1
50,000
Air Compressor
1
60,000
Particulars
Water Pump
1
15,000
Chilling Plant
1
1,50,000
Polypropylene including 6855 2% wastage
Perquisites @ 15% of Salaries
Testing Equipment
20,000
Electrification and Installation
6,85,000
Firefighting Equipment
25,000
Set of Mould for 2 ml (16 cavities for barrel, 24 cavity for plunger)
5,00,000
Set of Moulds for 5 ml Syringe (16 Cavity for barrel, 16 cavity for plunger)
7,00,000
Total
86,250
or Say
86,000
(ii) Raw Materials Including Packaging Requirement (per month)
Needles including 2% wastage
Qty. Kg.
(iv) Pre-operative Expenses
Packing Material
(Project, non-refundable deposits) Total fixed capital (i+ii+iii) Say
10,000 87,80,000 88,00,000
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Value (Rs.) 2,81,055 1,47,000 1,22,000
Total
5,50,055
or Say
5,50,000 (Rs.)
Power total connected 30 kW (Using 60% Load only) Water
(Rs.)
Rate per Kg.
9,80,000 0.15
(iii) Utility (per month)
(iii) Total Cost of Office Equipment/ 87,70,000 Working Table etc.
11,250
15,000 2,000
Total
17,000
(iv) Other Contingent Expenses (per month) (Rs.) Postage and Stationery
1,000
Telephone
2,000
Consumable Store
1,000
Repair and Maintenance
2,000
Transportation Charges
1,000
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D ISPOSABLE SYRINGES Advertisement and Publicity
2,000
Rent
20,000
Miscellaneous Expenditure
3. Net Profit (per year) Profit = Turnover – Cost of Production
1,000
Total
30,000
(v) Total Recurring Expenditure (per month)
Rs. 6,83,000
(vi) Total Working Capital (on 3 month basis)
= Rs. 1,38,24,000– 1,07,16,000 = Rs. 31,08,000 4. Net Profit Ratio = Net profit per year × 100 Turnover
Rs. 20,49,000
= 31,08,000 × 100 1,38,24,000
C. Total Capital Investment 1. Fixed Capital
88,00,000
2. Working Capital
20,49,000 Total
1,08,49,000
= 22.48% 5. Rate of Return = Net profit per year × 100 Total investment
Machinery Utilization The unit will work 8 hrs. per day producing 4800 pieces per hour of 2 ml and 5 ml syringes weighing 2.5 gms. and 4.5 gms. respectively. 2% extra raw material is taken as wastage.
FINANCIAL ANALYSIS
= 31,08,000 × 100 1,08,49,000 = 28.64% 6. Break-even Point (% of Total Production Envisaged) (i) Fixed Cost
1. Cost of Production (per year)
(Rs.)
(Rs.)
Depreciation on machinery and equipment
Total recurring cost per year
81,96,000
Depreciation on machineries @ 10%
7,57,000
Depreciation on office equipment
Depreciation on moulds @ 20%
2,40,000
Depreciation on moulds @ 20%
Depreciation on office equipment @ 20% Interest on total Capital investment @14%
4,000 15,18,860
Total
1,07,15,860
or Say
1,07,16,000
5,000
Interest on total Capital investment
15,18,860 2,40,000
40% of salary and wages
4,12,800
40% of other contingent expenses
48,000 Total
Qty. Nos.
Lakhs
Rate (Rs.)
Value (Rs.)
Disposable Syringe
2 ml
57.6
1
57.60
Disposable Syringe
5 ml
57.6
1.40
80.64
Total (Lakhs)
138.24
2,45,000
Rent
2. Turnover (per year) Item
7,57,000
(ii) Net Profit (per year) B.E.P. = F.C × 100 F.C.+ Profit = 32,27,000 × 100 32,27,000+31,08,000 = 50.93 %
32,26,660
D ISPOSABLE SYRINGES
Addresses of Machinery and Equipment Suppliers 1. M/s. D. G. P. Windsor India Ltd. E-6, U2 Road, Wogle Industrial Estate, Thane, Mumbai-400 604. 2. M/s. Sunanda Industrial Machinery A Division of Mafatlal Marg Industries Ltd. 109, Standard House, 83, Maharshi Karup Road, Mumbai-400002. 3. M/s. Indian Hydraulic Ind. Pvt. Ltd. 70 Shivaji Marg, Industrial Area, New Delhi-110015. 4. M/s. Ferromatik Milacron India Ltd. Plot No. 92 Phase-1,
G.I.D.C Vatva, Ahmedabad-382445. Addresses of Raw Material Suppliers 1. M/s. Indian Petrochemicals Corporation Ltd. P.O. Petrochemicals Township, Vadodara-391346 (Gujarat.) 2. M/s. Reliance Industries Ltd. Swastik Mill Compound, V. N Purav Marg, Chembur, Mumbai-400 071. 3. Gas Authority of India Ltd. 16 Bhikaji Cama Place, R. K. Puram, New Delhi 110066.
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