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Manufacturing of Rubber floor mats KSIDC

PROJECT PROFILE

ON

MANUFACTURING OF RUBBER FLOOR MATS

Prepared by:

Kerala State Industrial Development Corporation Ltd.

September 2012

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Manufacturing of Rubber floor mats KSIDC

PROJECT PROFILE FOR MANUFACTURING OF RUBBER FLOOR MATS

INTRODUCTION

The basic technical and financial parameters of a project on manufacturing of rubberfloor mats are described in this profile. Rubber floor mats include industrial rubber mat, antistatic mat, anti vibration mat, anti fatigue mat, high school wrestling mats, rubber mats foruse at home, entrance mats, interior mats and so on. However the major use of rubber floormats is to effectively remove and trap dirt and moisture at workplace as well as at home.

MARKET

Rubber floor mats find every day domestic use in providing great utility in scrubbing

of the dirt from shoes & chappals. Rubber mats are also used as floor covering aroundelectrical panels as a safeguard to the life and limb of the workmen due to possible leakage ofcurrent and short-circuit. It also provides oil resistant floor covering. Oil resistant rubberfloor mats are used near heavy machineries in industries.

The rubber floor mats can be used in all households, offices and factories across Indiaand abroad. Variety designs, vibrant colors, etc. will be well absorbed.

MANUFACTURING PROCESS

Rubber is mixed inside the kneader with stabilisers, vulcanising agents, forming

agents, pigments to make compounded rubber. The kneaded rubber is poured into themixing mill from where the compound is sheeted out in the proper thickness, width andlength. This sheet is then placed in the mould and heated in the hydraulic press to getvulcanised. After the curing time, the cured rubber is taken out, trimmed to get the finalproduct.

PROJECT PARAMETERS

CapacityProposed capacity of production : 300,000 sq. ft. mat per annum

LandExtent of land required : 0.5 acres

LocationThe project is proposed to be located at Rubber Park, Airapuram, Kochi

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Raw Material & UtilitiesRaw materials for manufacture of rubber floor mats include various kinds of rubber like NR,NBR, SBR etc. and vulcanizing agents, colorants, stabilizers etc. The total connected load isestimated at 200 KVA and water requirement is estimated at 5KL / day.

Plant & MachineryThe principal items of plant and machinery are the followingMachinery Approx. cost (in`lakhs)

Rubber Kneader 50.00

Mixing Mill - 2 Nos 25.00

Multi Day Light Hydraulic Press -2 nos 40.00

ManpowerRequirement of manpower is estimated to be 23 and include six administerial staff,five skilled workers and 12 unskilled workers.

Cost of the ProjectThe total cost of project is estimated at ` 364.50 lakhs as detailed below.

Item Approx. cost (in`lakhs)

Land on lease 10.00Land development 17.00

Building 56.00Plant & Machinery 184.00Utilities 16.50MFA 7.00Tech know-how & Engg Fee 5.00Contingencies 13.00Deposits 1.00Prelim. and pre-op. Expenses 25.00Margin money for Working Capital 30.00Total 364.50

The time required for completion of the project is estimated to be 12 months.

Means of FinanceMeans of Finance for the Project is given below .

Equity

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Manufacturing of Rubber floor mats KSIDC

Share Capital ` 182.25 lakhs

Debt

Term loan from FIs/ Banks ` 182.25 lakhs

Total ` 364.50 lakhs

Sales TurnoverThe optimum Sales Turnover (Revenue) is estimated to be ` 1548.47 lakhs and can be

achieved in year 4.

FINANCIAL INDICATORS

Net Profit in year 4 ` 72.20 lakhs Break Even Point (BEP) 42.06% Debt Service Coverage Ratio (DSCR) 2.93 Debt Equity Ratio (DER) 1:1 Internal Rate of Return (IRR) 23%

CONCLUSION

The project is found to be techno-economic viable. Raw materials are readily available locallyin Kerala and therefore the production is more economical in Kerala. Rubber mats are moredurable and user friendly and can find uses in any household or institution. The project isrecommended for implementation.

For further details please contact Kerala State Industrial Development Corporation Ltd.

Disclaimer:The findings contained in this Project Profile are based on the initial information collated through primary and secondaryresearch, which is indicative in nature. Reference herein to any specific commercial product, process, service by trade name,trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring byKSIDC or any entities thereof.