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CUBE CUBEPACKAGING is a small scale industry (SSI) which manufactures corrugated carton boxes. Each of the partners contributes Rs20 Lakhs each towards the partnership as capital.

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Rameez Khan
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8 views17 pages

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CUBE CUBEPACKAGING is a small scale industry (SSI) which manufactures corrugated carton boxes. Each of the partners contributes Rs20 Lakhs each towards the partnership as capital.

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Rameez Khan
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© Attribution Non-Commercial (BY-NC)
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Procurement of machinery It is a very important factor of production in amanufacturing [Link] is a need for procuringright type of machinery as it results in producing betterquality products at reasonable [Link] is a comprehensivejob as it involves certain factors which are taken intoconsideration,while procuring machinery that is cost anddurability of machines,its quality and performance. Lighting There is always a need for sufficient artificial and naturallighting or smooth and economical operations of anindustry. A better lighting provided in the industryencourages the workers to work harder and contributeeffectively and efficiently for increasing productivity. It alsohelps on avoiding wastages,industrial accidents etc. Ventilation It refers to the supply of free movement of air from outsideto inside and vice versa in an industry. By providing properventilation facilities in various departments of an industry, itwill protect the health of the employees. Air conditioning It depends on the nature of the industry to install airconditioning facility according to the product which anindustry [Link] air conditioning facilities willraise the comfort level among the employees as it controlsthe temperature and humidity and distributes pure air byartificial means. All the above mentioned factors has a great influence in setting up an industrial enterprise.

CUBE CUBEPACKAGING PACKAGING COMPANY OVERVIEW

CUBE PACKAGINGis a small scale industry (SSI) which manufactures corrugated carton [Link] apartnership [Link] products are eco-friendly, highlydurable,easy to use and recycle,require minimum spaceand have standard load capacity. PARTNERSHIP Cube Packagingconsists of FOUR partners who share their profits and losses equally. Each of the partners contributes Rs20 Lakhs each towards the Partnership as capital. The working of partnership will be according to the Deed. CAPITAL REQUIREMENT Total Capital Required: y Rs. 1Crore Plant and Machinery AND Land and Building. y Rs. 50 Lakhs (Approximately ) Working Capital Requirements: y 50 Lakhs The Capital contributed by the Partners, i.e. Rs. 20 Lakhs each, will be utilized for the above and the remaining Rs. 20 Lakhs will be funded through Bank Overdraft. AREA OFLOCATION The company will be established in [Link] will belocated in Mahadevpura Industrial Area,Whitefield [Link] location is best suited because of the goodtransportation facility, nearness to the source of rawmaterial and since it is an industrial area,labourers areavailable in plenty.

PLANTLAYOUT A single storey building is [Link] there are heavy machinery,multi storied building may not prove to be [Link] the productionprocess carries on a chain form,product or line method is [Link] in easy supervision,minimum material handling and smoothensproduction function. (Refer ANNEXURE 1) RAW MATERIALS AND THEIR SUPPLIES Various raw materials required for production of Carton Boxes areKraft paper (paper Reel), Corrugation gum,pasting gum, stitching coilCali cloth,printing ink,screen [Link] are many brands for Kraftpaper. But we will be using Vinayaka, Jodani and Vijayanand Brand. Theraw materials are available in the local [Link] we will havecontinuous supply of raw materials. TARGET CUSTOMERS y Garments and apparels 40% y Logistics - 20% y Engineering Goods 10% y Exporters 20% y Art and Crafts - 10% LABOURERS We require skilled as well as unskilled laborers. We do not pay daily wages but pay salary to all. Training will be given to each laborer about the use of machines and their safety precautions. MACHINES Manufactures of corrugated carton box require various machines forvarious [Link] this purpose Rs.50 Lakhs is set aside foemachinery and [Link] can be purchased from Indian or [Link] machinery available in foreign market is automatic plantwhich requires an investment of Rs.5 [Link] we restrict ourselvesto the Indian Market [Link] machinery that we purchase underour budget helps in conversion of 150 tons of Kraft paper perYear.

SPARE MAINTANENCE Maintenance of spares and machines is very important for smoothfunctioning as well as long duration of the [Link] can be donein two ways [Link] Method and AMC (Annual MaintenanceCost) [Link] AMC method,a maintenance company willbe given the contract of maintaining the machinery. Thus we chosethis system/ Method. WORKING OF MACHINES The Production Process follows LINE or PRODUCT [Link] the Raw Material is loaded ([Link] reel) into Corrugationmachine where due to heat Flute is [Link] the next machineauto cutter cuts the sheet into required [Link] the top sheet isprinted in the Flexo printing [Link] number of ply is decided(in ODD numbers) and these ply are pasted in the pasting [Link] the ply is pasted they are stacked to dry for 4-5 [Link] and height of the box are decided and Creasing is doneaccordingly in the rotary [Link] the slots are made whichhelps in folding with the help of Slotter [Link] the twoboards are stitched with the box stitching [Link] punchingmachine is used for Dye cut box [Link] the box are producedthey undergo natural [Link] finished goods are ready for sale. EXPENSES Transportation, electricity, salary, tax, depreciation, maintenance cost, etc. PRICE The price of each carton box is based on two things GSM (Grams persquare meter) and BF (Busting Factor). GSM refers to the weight of thebox and BF refers to the strength of the paper. As the GSM and BFincreases the price also [Link] price of our products range fromRS.15 RS.30.

PRICING PO ICY Pri i i i ri rsi i . ri

ri l, i i ! i ry , " ri s Expensesinvolved etc. # early 40% of the price constitutes the Raw Material and cost of production. # early 40-45% constitutes the expenses for distri $ ution. PROFIT MARGIN % fter deducting all expenses from the revenues earned, i tis estimated that 4% of the sales occurredin the year will $ e our profiti.e. i f we sell goods worth Rs. &

00, then our net profit will $ e Rs. 4. STATUTORY REQUIREMENTS y y y Factory License SalesTax Registration Small-Scale Industry Certificate

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Proper lighting in industries encourages workers to work harder and contributes to higher productivity by creating a comfortable work environment. It also aids in avoiding wastages and industrial accidents. Sufficient ventilation is crucial for the free movement of air, which protects employees' health and potentially increases their productivity by providing a healthier workplace .

Cube Packaging utilizes a line or product layout in its production process. This layout supports the chain form of production, facilitating easy supervision, minimizing material handling, and smoothing the production function, which is crucial for efficient operations in manufacturing industries .

Cube Packaging's pricing is heavily influenced by GSM (Grams per square meter) and BF (Busting Factor), which determine the weight and strength of the paper, respectively. Prices range from Rs. 15 to Rs. 30 per box. Approximately 40% of the price is determined by raw material costs, another 40-45% by distribution and production expenses, with the remaining amount as potential profit before expenses .

Cube Packaging does not use daily wages; instead, it offers salaries to laborers, ensuring stable income and potentially increasing employee loyalty and reducing turnover. Training is provided to ensure efficient machine use and safety, which enhances productivity and reduces accident risks, ensuring smoother operations .

Cube Packaging uses the AMC (Annual Maintenance Cost) approach for maintaining machinery, wherein a maintenance company is contracted to oversee the upkeep. This strategy ensures professional, regular maintenance, reducing downtime and potentially extending machinery lifespan, leading to more predictable and stable production .

Cube Packaging is structured as a partnership firm consisting of four partners who equally share profits and losses. Each partner contributes Rs. 20 Lakhs as capital, making a total initial capital of Rs. 1 Crore. Additionally, Rs. 50 Lakhs is allocated for plant and machinery, and working capital is also set at Rs. 50 Lakhs, with a Rs. 20 Lakhs bank overdraft covering the remaining requirements .

Cube Packaging is located in Mahadevpura Industrial Area, Bangalore. This location is strategic due to its proximity to sources of raw materials, good transportation facilities, and availability of laborers, which are critical for reducing logistics costs and ensuring a steady supply chain and workforce availability .

Key considerations in procuring machinery include cost, durability, quality, and performance of the machines. These factors are important as they result in better quality products at reasonable rates, impacting the overall productivity and efficiency of the manufacturing process .

Cube Packaging manufactures eco-friendly corrugated carton boxes that are highly durable and easy to recycle. The focus on using recyclable materials contributes to sustainability and aligns with growing consumer demand for environmentally responsible products, enhancing the company’s market appeal .

The raw materials, including Kraft paper from brands like Vinayaka, Jodani, and Vijayanand, and other inputs are crucial for uninterrupted production at Cube Packaging. The local availability of these materials ensures a continuous supply, minimizing supply chain disruptions and contributing to stable operational efficiencies .

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