Disposable Syringes

Disposable Syringes are made of plastic material and are used in the field ... Water Pump 1 15,000 ... (16 cavities for barrel,...

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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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