PROJECT REPORT

On

Manufacturing Offset Printing and Publisher

Submitted

As part of requirement of The Training

under

New Entrepreneur cum-Enterprise Development

Scheme

Government of Tamil Nadu

Conducted by

Entrepreneurship Development Institute, Guindy,

Chennai

Prepared by

Name : J. REVATHI

Address: No.16, MRM Road, Car Complex, West

Tambaram, Chennai - 45.

Mobile: 95660 55990

Email: bhaghavanpress@gmail.com

Training at Sri Venkateswara Printers, at

No.6, Azhagesan First Street, Vadapazhani, Chennai.

Financed by TIIC Bank at Tambaram, Tambaram

Branch.

TABLE OF CONTENT

Sl. No. Description Page No.

1. Introduction of Printing

2. Business Plan Preparation through Software Developed by EDI

3. Business Plan prepared through Manual Format

4. Industrial Visit Letter and Reports

5. Market Survey Questionnaire & Analysis

6. Copy of Machinery / Catalogue & Proforma Invoice / Quotation

7. Raw material Evidence

8. Copy of Qualification, Experience Certificate, Residential Proof

9. Part I registration under MSME

1. INTRODUCTION OF PRINTING

Printing is a process for reproducing text and images using a master form or

template. The earliest examples include Cylinder seals and other objects such as the

Cyrus Cylinder and the Cylinders of Nabonidus. The earliest known form of

woodblock printing came from China dating to before 220 A.D. Later developments

in printing include the movable type, first developed by Bi Sheng in China. The

printing press, a more efficient printing process for western languages with their more

limited alphabets, was developed by Johannes Gutenberg in the fifteenth century.

Modern printing is done typically with ink on paper using a printing press. It is

also frequently done on metals, plastics, cloth and composite materials. On paper it is

often carried out as a large-scale industrial process and is an essential part of

publishing and transaction printing.

Printing spread early to Korea and Japan, which also used Chinese logograms,

but the technique was also used in Turpan and Vietnam using a number of other

scripts. This technique then spread to Persia and Russia.[6]

This technique was

transmitted to Europe from China, via the Islamic world, and by around 1400 was

being used on paper for old master prints and playing cards.[7]

However, Arabs never

used this to print the Quran because of the limit of Islam doctrine.

In the Middle East

Block printing, called tarish in Arabic developed in Arabic Egypt during the

ninth-tenth centuries, mostly for prayers and amulets. There is some evidence to

suggest that these print blocks made from non-wood materials, possibly tin, lead, or

clay. The techniques employed are uncertain, however, and they appear to have had

very little influence outside of the Muslim world.

In Europe

The earliest known woodcut, 1423, Buxheim, with hand-colouring Block

printing first came to Europe as a method for printing on cloth, where it was common

by 1300. Images printed on cloth for religious purposes could be quite large and

elaborate. When paper became relatively easily available, around 1400, the medium

transferred very quickly to small woodcut religious images and playing cards printed

on paper. These prints produced in very large numbers from about 1425 onward.

The Printing press

Johannes Gutenberg's work on his printing press began in approximately 1436

when he partnered with Andreas Dritzehen – a man he had previously instructed in

gem-cutting – and Andreas Heilmann, the owner of a paper mill.[13]

It was not until a

1439 lawsuit against Gutenberg that an official record exists; witness testimony

discussed type, an inventory of metals (including lead) and his type mould.

Rotary printing press

The rotary printing press was invented by Richard March Hoe in 1843. It

uses impressions curved around a cylinder to print on long continuous rolls of paper or

other substrates. Rotary drum printing was later significantly improved by William

Bullock.

Letterpress

Letterpress printing is a technique of relief printing. A worker composes and

locks movable type into the bed of a press, inks it, and presses paper against it to

transfer the ink from the type which creates an impression on the paper.

Offset

Offset printing is a widely used printing technique. Offset printing is where

the inked image is transferred (or "offset") from a plate to a rubber blanket. An offset

transfer moves the image to the printing surface. When used in combination with the

lithographic process, a process based on the repulsion of oil and water; the offset

technique employs a flat (planographic) image carrier. So, the image to be printed

obtains ink from ink rollers, while the non-printing area attracts a film of water,

keeping the non-printing areas ink-free.

Currently, most books and newspapers are printed using the technique of

Offset.

Varieties of Printing are:

Offset Printing

Flexo Printing

Flex Printing

UV Printing

Any Media Printing

2. BUSINESS PLAN PREPARATION

THROUGH SOFTWARE

DEVELOPED BY EDI

3. BUSINESS PLAN PREPARED

THROUGH MANUAL FORMAT

BUSINESS PLAN FORMAT FOR MSMEs

1.0.

Name of the Firm BHAGHAVAN PRINTER AND PUBLISHER

vz;zq;fs; tz;zkhFk;

Name of business/project MANUFACTURING UNIT – OFFSET PRINTING

AND PUBLISHER

Location MUDICHUR, TAMBARAM, KANCHEEPURAM

DISTRICT

Type of Organization

(Proprietary/Partnership) PROPRIETRIX

Address (with Phone, e-

mail)

No.16, MRM ROAD, CAR COMPLEX,

WEST TAMBARAM,

CHENNAI - 600 045.

044 – 42043119

bhaghavanpress@gmail.com

Name of the Chief

Promoter(s) -

Date of Birth 02.06.1993

Names of Partners NA

1.1. Educational Qualification:

Course (from

SSLC/Diploma) School/University/Institute

Major

Subject

Yr. of

Passing

B.Sc ISM Madras University – A.M.Jain

College, Minambakkam

FM, M A/c

etc., 2011-2014

1.2. Special Training:

Training in Institute Duration Achievement/Re

mark

- - - -

1.3. Work experience (Past & Present):

Organization Position Nature of work Duration

Sri Venkateswara

Printers Account Supervisor

Managing & Back Trapping

of Accounts 1 year

1.4.

Promoter‟s Annual Income (Last Year) -

Assets owned by the promoter (s)

Movable -

Immovable -

1.5. COMPANY‟S MAIN OBJECTIVE (Why does the company exist?):

“Thoughts to print” - vz;zq;fs; tz;zkhFk;

To be a Leader in “Converting Customers thoughts into Print and adding

Colors”

To be a Pioneer in the „Printing and Publishing Industry‟, by Delivering to the

Customers with High-end Equipments and Cutting Edge Technology, Cost

Effective and Timely Delivery.

1.6. FINANCIAL GOALS:

a. To have a sales revenue amounting to Rs. 200 Lakhs by 5 years

b. To obtain a profit margin of 40%

c. To obtain a profit per business partner of NA

1.7. DESCRIPTION OF THE PRODUCT or SERVICE:

Designing

Printing

Lamination

Binding

Packaging

1.8. IDENTIFICATION OF THE CUSTOMERS:

Colleges, Universities

Public

Shops

Corporates and

Others

Needs satisfied by the product or service:

1.9. IDENTIFICATION OF THE COMPETITION (Major competitors):

Competitors in and around our area:

Print-X

SRM Printers

VSR Printers

Strengths/weakness of the competition:

Strength Weakness

Existing Printers

Experienced Manpower

Poor Customer Service

Poor Timely Delivery

1.10. ADVANTAGES AND DISADVANTAGES OF THE PRODUCT AND YOUR

COMPANY

Price Cost Effective

Quality The Best

Terms of Delivery Well before the Time

Payment Methods Cash / DD / Cheque

Customer Service Best Product with Best Service with Cost Effective

Others: Disadvantages : New Comer

1.11. MESSAGE TO BE COMMUNICATED TO THE CUSTOMERS:

A Place for “Thoughts to print” - vz;zq;fs; tz;zkhFk;

1.12. MARKETING AND MEANS OF COMMERCIALIZATION:

Present demand &

supply

Very High Demand Due to Increase in Number of Colleges

Improvement in Indian Economy brought Good Scope for All

Businesses which brings Business to Us.

Competition High Yielding Industry

Target clients Colleges, Universities

Public

Shops

Corporates and

Others

Marketing strategy

(USP)

Promotion through word of mouth by Satisfied Customers

Personal Visits to Colleges, Universities etc.,

Personal Touch with Students Coming for Project Works

1.13. Manufacturing Process:

Technical know-how

availability

Advance Machineries with Cutting Edge Technology

with Skilled Man Power

Step-by-step description of

the manufacturing process

(raw material-finished

goods)

Designing

Printing

Lamination

Binding

Packaging

1.14. Production Programme:

No. of working days/annum 300 days/ Per Annum

No. of working shifts (8hrs)/day 2 Shifts

Installed capacity (annual) 100 %

Utilized capacity (%)

Year - I 70%

Year - II 80%

Year - III 100%

S.No. Item(s) Quantity Produced/Yr

Capacity

Utilization(%)

- NA - -

2.0 Details of the Proposed Project:

2.1 Land and Building:

S.No. Particulars Area required Total value Remarks

1 Land - - -

2 Building 2,400 - Lease

2.2. Machineries/Equipments:

S.No. Description Nos.

required Rate (Rs) Total value(Rs)

1. 4 Color Offset Machine 1 74,99,100 74,99,100

2. Paper Cutting Machine 1 8,10,600 8,10,600

3. Perfect Binding Machine 1 5,49,150 5,49,150

4. Book Stitching Machine 1 1,30,200 1,30,200

5. Punching & Creasing

Machine 1 3,05,050 3,05,050

6. Computers 5 40,000 2,00,000

TOTAL 94,94,100

2.3. Misc. Fixed Assets:

S.No. Particulars Nos. required Rate (Rs.) Total

value(Rs.)

1. Electrical, Furniture - - 2,05,900

2.4. Preliminary and Pre-operative Expenses:

S.No. Particulars Amount (Rs) Remarks

1 Interest during implementation - -

2 Establishment expenses 25,000 Rent

3 Start-up expenses - -

4 Misc. expenses - -

TOTAL 25,000

2.5. Working Capital:

S.

No Item Duration

Total Value (Rs)

Ist YR II

nd YR III

rd YR IV

th YR V

th YR

1.

Raw-

material

stock

10%

Purchase 4,84,000 5,80,000 6,77,000 7,74,000 8,70,000

2. Finished

goods stock

25% of

Sales 28,13,000 33,76,000 39,38,000 45,01,000 50,63,000

3.

Sales on

credit-

Debtors

- 18,75,000 39,56,000 46,15,000 52,75,000 59,33,000

4. Sundry

Creditors - (4,03,000) (4,84,000) (5,64,000) (6,45,000) (7,25,000)

5. Production

expenses - (88,000) (1,04,000) (1,22,000) (1,30,000) (1,57,000)

6.

Cash &

Bank

Balance

- 27,000 44,92,000 1,05,33,000 1,81,54,000 2,73,51,000

7. Loans and

Advances - 5,00,000 5,00,000 5,00,000 5,00,000 5,00,000

TOTAL 5208000 10610000 17588000 26146000 36278000

2.6. Total Cost of the Project:

S.No. Particulars Total value (Rs)

1. Fixed Capital (sum of 2.1+2.2+2.3) 97,00,000

2. Working Capital (Sum of 2.5) 52,08,000

3. Preliminary & Preoperative Expenses (sum of 2.4) 25,000

TOTAL 1,49,33,000

2.7. Means of Finance:

S.No. Particulars Amount (Rs) Remarks

1. Own Investment/Equity 7,46,650 -

2. Term Loan 92,15,000 -

3. Working capital Loan 49,71,350 -

4. Any other source (subsidy etc) - -

TOTAL 1,49,33,000

3.1. Sales Revenue: (Please refer item No. 5.1 (Pricing)

S.No. Items (s) Quantity

Sold/Yr

Rate/Unit (Rs)

100% Capacity

Sales Realization

(Rs) 50%

Capacity

1. Printing - 93,60,000 46,80,000

2. Die Punching - 37,44,000 18,72,000

3. Binding - 55,00,000 27,50,000

4. DTP & Designing - 39,00,000 19,50,000

TOTAL 2,25,04,000 1,12,52,000

4.1. Raw material (annual) Requirement:

S.No Item (s) Quantity Rate (Rs)

Total value

(Rs) 50%

Capacity

1. Materials for Printing & Offset

Printing - - 23,40,000

2. Material for Die Punching - - 9,36,000

3. Material for Binding - - 10,92,000

4. Material for DTP & Designing - - 4,68,000

TOTAL 48,36,000

4.2. Utilities:

S.No Particulars Annual Expenditure Remarks

1. Power/electricity 4,50,000 -

2. Water - -

3. Coal/Oil/Steam - -

4. Transport - -

5. Any other item - -

Total 4,50,000

4.4. Man Power (Salaries/Wages):

S.No. Particulars No. Wages/Salary

p.m. (Rs)

Annual

expenses (Rs)

50% Capacity

1 Skilled 6 58,000 3,48,000

2 Semi-skilled 2 19,000 1,14,000

3 Unskilled 3 22,000 1,32,000

4 Office staff - - -

5 Any other - - -

TOTAL 99,000 5,94,000

4.5 Repairs and Maintenance:

S.No. Particulars Amount (Rs) 50% Capacity

1. Machinery & Other Equipments 1,50,000

4.6. Selling and Distribution Expenses:

S.No Particulars Amount (Rs)

50% Capacity Remarks

1. Publicity expenses 2,00,000 -

2. Traveling 50,000 -

3. Freight - -

4. Commission - -

5. Misc. 88,000 -

TOTAL 3,38,000

4.7. Administrative Expenses:

S.No. Particulars Amount (Rs)

50% Capacity Remarks

1. Stationery & Printing 2,00,000 -

2. Rent 1,50,000 -

3. Post/telephone 2,00,000 -

4. Entertainment Expenses 50,000 -

5. Miscellaneous 7,05,000 -

TOTAL 13,05,000

4.8. Interest:

Year Loan amount

Outstanding (Rs) Interest (Rs)

Installment

(Rs) Balance (Rs)

Ist 96,80,000 4,65,000 19,36,000 77,44,000

IInd

77,44,000 8,13,000 19,36,000 58,08,000

IIIrd

58,08,000 5,81,000 19,36,000 38,72,000

IVth

38,72,000 3,48,000 19,36,000 19,36,000

Vth

19,36,000 1,16,000 19,36,000 -

4.9. Depreciation:

S.No. Type of Asset Cost of Asset Expected Life Depreciation

1. Offset Machine 74,99,100 25 Millions Pages 11,24,865

2. Paper Cutting Machine 8,10,600 30 Millions Pages 1,21,590

3. Perfect Binding Machine 5,49,150 2 Millions Pages 82,373

4. Book Stitching Machine 1,30,200 30 Millions Pages 19,530

5. Punching & Creasing 3,05,050 1 Million Pages 45,757

6. Electrical, Furniture &

Fittings 2,05,900 5 years 30,885

7. Computers 2,00,000 6 years 30,000

TOTAL 14,55,000

5.1. Pricing:

4 Color Offset

Machine

Product 1

Amount

Paper Cutting

Machine

Product 2

Amount

Perfect

Binding

Machine

Product3

Amount

Book

Stitching

Machine

Product 4

Amount

Total product cost

per unit (fixed

cost/unit+ variable

/unit)+tax

44,36,975 17,74,790 26,07,197 18,48,740

Desired Profit 2,43,025 97,210 1,42,803 1,01,260

Sale Price

(including tax) 46,80,000 18,72,000 27,50,000 19,50,000

5.2 Profitability Projections:

S.

No Particulars Amount (Rs)

Year-1 Year-2 Year-3 Year-4 Year-5

A Sales realization 1,12,52,000 1,35,02,000 1,57,53,000 1,80,03,000 2,02,54,000

B

Cost of producing

1 Raw materials 43,52,000 57,07,000 66,73,000 76,41,000 86,09,000

2 Power/Fuel 4,50,000 5,40,000 6,30,000 7,20,000 8,10,000

3 Salaries/wages 5,94,000 7,13,000 8,32,000 9,50,000 10,69,000

4 Rent 1,50,000 1,80,000 2,10,000 2,40,000 2,70,000

5

Selling&

distribution

expenses

3,38,000 4,05,000 4,73,000 5,40,000 6,08,000

6 Administrative

expenses 14,55,000 17,46,000 20,37,000 23,28,000 26,19,000

7 Interest 4,65,000 8,13,000 5,81,000 3,48,000 1,16,000

8 Closing Stock (32,97,000) (39,56,000) (46,15,000) (52,75,000) (59,33,000)

TOTAL –B (1 TO 8) 45,07,000 61,48,000 68,21,000 74,92,000 81,68,000

C Less: Depreciation 14,56,000 12,38,000 10,53,000 8,92,000 7,61,000

D Gross profit/loss

(A–B) 67,45,000 73,54,000 89,32,000 1,05,11,000 1,20,86,000

E Income-tax 1407701 1663244 2208011 2745671 3272825

F Net profit/loss 53,37,299 56,90,756 67,23,989 77,65,329 88,13,175

G Repayment 19,36,000 19,36,000 19,36,000 19,36,000 19,36,000

H Retained surplus 34,01,299 37,54,756 47,87,989 58,29,329 68,77,175

4.INDUSTRIAL VISIT LETTER AND

REPORTS

5. MARKET SURVEY

QUESTIONNAIRE & ANALYSIS

6. COPY OF MACHINERY /

CATALOGUE & PROFORMA

INVOICE / QUOTATION

7. RAW MATERIAL EVIDENCE

8.COPY OF QUALIFICATION,

EXPERIENCE CERTIFICATE,

RESIDENTIAL PROOF

9.PART I REGISTRATION UNDER

MSME