Manufacturing of Rubber floor mats

KSIDC

PROJECT PROFILE

ON

MANUFACTURING OF RUBBER FLOOR MATS

Prepared by:

Kerala State Industrial Development Corporation Ltd.

September 2012

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 rubber floor mats are described in this profile. Rubber floor mats include industrial rubber mat, anti static mat, anti vibration mat, anti fatigue mat, high school wrestling mats, rubber mats for use at home, entrance mats, interior mats and so on. However the major use of rubber floor mats 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 around electrical panels as a safeguard to the life and limb of the workmen due to possible leakage of current and short-circuit. It also provides oil resistant floor covering. Oil resistant rubber floor mats are used near heavy machineries in industries. The rubber floor mats can be used in all households, offices and factories across India and 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 the mixing mill from where the compound is sheeted out in the proper thickness, width and length. This sheet is then placed in the mould and heated in the hydraulic press to get vulcanised. After the curing time, the cured rubber is taken out, trimmed to get the final product. PROJECT PARAMETERS Capacity Proposed capacity of production Land Extent of land required

: 300,000 sq. ft. mat per annum

: 0.5 acres

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

Manufacturing of Rubber floor mats

KSIDC

Raw Material & Utilities Raw 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 is estimated at 200 KVA and water requirement is estimated at 5KL / day. Plant & Machinery The principal items of plant and machinery are the following Machinery Approx. cost (in` lakhs)
Rubber Kneader Mixing Mill - 2 Nos Multi Day Light Hydraulic Press -2 nos 50.00 25.00 40.00

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

Cost of the Project

The total cost of project is estimated at ` 364.50 lakhs as detailed below. Item Approx. cost (in` lakhs)
Land on lease Land development Building Plant & Machinery Utilities MFA Tech know-how & Engg Fee Contingencies Deposits Prelim. and pre-op. Expenses Margin money for Working Capital Total 10.00 17.00 56.00 184.00 16.50 7.00 5.00 13.00 1.00 25.00 30.00 364.50

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

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

Manufacturing of Rubber floor mats

KSIDC

Share Capital Debt Term loan from FIs/ Banks Total

` 182.25 lakhs ` 182.25 lakhs ` 364.50 lakhs

Sales Turnover

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

CONCLUSION The project is found to be techno-economic viable. Raw materials are readily available locally in Kerala and therefore the production is more economical in Kerala. Rubber mats are more durable and user friendly and can find uses in any household or institution. The project is recommended 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 secondary research, 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 by KSIDC or any entities thereof.