ADJUSTABLE HOSPITAL BEDS

PRODUCT CODE

: NA

QUALITY AND STANDARDS

: As per IS: 7378-1974

/Customer specification

PRODUCTION CAPACITY
(Per Annum)

: General Purpose Hospital Beds - 250 Nos.

Fowlers Hospital beds
- 250 Nos.
Value : Rs. 91,00,000/-

MONTH AND YEAR

OF PREPARATION

: May, 2014

PREPARED BY

: Sh. Kamal Singh

Deputy Director (Mechanical)

1. PRODUCT AND ITS USE

Adjustable hospital beds are made of steel & normally used in Govt.
Hospitals, Private Hospitals, & Nursing homes, Clinics etc. There are two types of
hospital beds namely.
i. General purpose Hospital Bed Steeds
ii. Fowlers hospital Beds

2. MARKET POTENTIAL
The demand for adjustable beds is increasing day by day due to the following
reasons.
i.

Increase the number of Hospitals in private sector due to increase Health

consonance among public

ii.

Increase in number of private & Government nursing homes and clinics.

The Govt. is encouraging new hospitals & nursing homes in private sectors in
order to increase treatment facilities in therefore likely to be a steady increase in the
demand for hospital furniture. However, the growth rate is expected to be more than
10% per year and as such it may be ideal for the existing steel furniture manufacturer
units to take up this activity for not only as diversification but also better capacity
utilization by adding some manufacturing facilities in these units.

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Adjustable Hospital Beds

3. BASIS AND PRESUMPTIONS

i.

This project profile is based on 8 working hours a day and 25 days in a month
and the break even efficiency has been calculated on 75% capacity utilization
basis.

ii.

The gestation period in implementation of the project may be about 8 to 12

months. This period including making of all arrangements such as
preparation of project reports, Registration as SSI etc, market surveys,
recruitment of staff, commissioning of plant and trial production etc.

iii.

The normal wages and salaries being paid in the industry to various grades of
personnel have been considered and also the provision of minimum wages
has been taken care of.

iv.

Rate of interest for both fixed & working capital have been taken as 14% P.A.

v.

The payback period for finance to the financial institutions may be about 8/10
years in case of term loan. The working capital loan may however be in a
shape of rolling/limit based capital.

4. IMPLEMENTATION SCHEDULE
Implementation of the project involve various activities like market surveys
and tie-ups, procurement of know-how, arrangement of premises/land, building,
preparation of project report, registration, financing purchase of machines,
commissioning of project, recruitment of staff and training, arrangement of power,
procurement of raw materials, packing material, trial production etc. in order to
implement the project efficiently and in the shortest period there is a need to initiate
many activities simultaneously as far as possible. This will not only cut the slack
period but also will give quick results and be cost effective. It is advised to follow
PERT/CPM/NET WORK analysis technique for implementation along with their
estimated time requirement is given below.
S.No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Activity
Market survey
Procurement of know-how/experts
Arrangement of premises
Obtaining quotations and preparation of project report.
Registration and financing.
Recruitment of personnel and training.
Obtaining power connection.
Procurement of machines and equipments.
Installation and electrification of machinery.
Procurement of raw materials, consumables, packing
materials etc.
Product development/trial production
Commercial production
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Estimated
period required
15-20 days
30 days
30-45 days
15-20 days
45-60 days
30-45 days
15-30 days
45-60 days
20-30 days
5-10 days
5-10 days
5-10 days

Mechanical Division

5. TECHNICAL ASPECTS
5.1. Process of Manufacturing
The basic operations involved in the manufacturing of adjustable beds are as
follows:
1. Cutting & bending of pipes
2. Cutting of MS angles, MS Roads of required sizes
3. Cutting of MS Sheets
4. Welding & machining work
5. Grinding
6. Assembling of elevating mechanism
7. Painting & baking

5.2. Inspection & Quality Control

IS: 7378-1974 specifies dimensional & other requirements of fowlers beds used
in hospitals. The above specifications may be followed for quality control.

5.3. Energy Conservation

This industry is not a large power consuming industry however maximum
care should be taken in utilization of electrical energy.

5.4. Pollution Control

These types of industries are not producing any effluents or any other
polluting material. Therefore pollution control measures are not taken into account.

5.5. Production Capacity

This unit is envisaged to produce 500 Nos. of different types of hospital beds
to the worth of Rs. 91 Lac.

6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building: A built up area of 200 Sq. Mtr on rental basis; Rs. 10,000/- per
month.

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Adjustable Hospital Beds

6.1.1. Machinery and Equipments

Sl.
No.
1.

3 Nos.

Rate
(Rs.)
30,000/-

Amount
(Rs.)
90,000/-

Name of machine

Qty.

Pipe bending machine hand operated

with fixtures locally fabricated.

2.

Arc welding set

1 Set

25,000/-

25,000/-

3.

Gas cutting set with torch, regulators etc.

1 Set

20,000/-

20,000/-

4.

Bench drill machine capacity

1 No.

25,000/-

25,000/-

Portable drilling machine capacity

1 No.

20,000/-

20,000/-

5.

Flexible shaft grinder 150 mm wheels

1 No.

10,000/-

10,000/-

6.

Double ended bench grinder 300 mm

sizes.

1 No.

20,000/-

20,000/-

7.

Hand shearing machine 3 mm capacity

1 No.

10,000/-

10,000/-

8.

Baking oven 2.5m x 2 m x 2 m Size & 20

KWA capacity

1 No.

1,25,000/-

1,25,000/-

9.

Hand press No. 4

2 Nos.

10,000/-

20,000/-

10.

Cleaning, pickling, Phosphating tanks

2.5 x 2 x 2 mtrs.

L.S

1,00,000/-

11.

Compressor with spray gun unit for

painting

1 No.

20,000/-

20,000/-

12.

Riveting m/c portable type electrical

operated.

1 No.

25,000/-

25,000/-

13.

Hand tools, instruments etc.

LS

--

25,000/-

14.

Fixtures & dies.

LS

--

1,00,000/-

15.

Electrification & installation @ 10% cost of machinery

16.

Office equipments/work table etc.

17.

Pre-operative expenses

L.S

51,000/1,00,000/Total

50,000/8,36,000/-

6.2. Working Capital (per month)

6.2.1. Staff and Labour
S.No.
1.

Staff
Supervisor

No.
1 No.

Rate (Rs.)
15,000/-

Amount (Rs.)
15,000/-

2.

Clerk/accountant

1No.

7,500/-

7,500/-

3.

Peon/chowkidar

1 No.

6,000/-

6,000/-

4.

Skilled worker

2 Nos.

10,000/-

20,000/-

5.

Semi-skilled worker

2 Nos.

7,500/-

15,000/-

6.

Helpers

2 Nos.

6,000/-

12,000/-

Perquisites @ 20% of salary

Total

15,100/90,600/-

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Mechanical Division

6.2.2. Raw Material

S.No.
1.

Nomenclature of the material

M.S. ANGLE IRON 40mm X40mm X3mm &
38mmX 38 mm X 3mm = 1.00 MT @ Rs. 55000/- per M.T.
M.S. tubes 38.10 mm ODx 1.6 mm/1.22 mm thick
1.5 M.T @ Rs. 70,000/- per M.T.
M.S. tubes 25.40 mm ODx 1.6 mm/1.22 mm thick
1.50 M.T @ Rs. 70,000/- per M.T.
M.S. tubes 19.5 mm ODx 1.22 mm thick
1.00 M.T @ Rs. 70,000/- per M.T.
M.S Strips 1.25 mm X 25 mm
1.00 M.T @ Rs. 60,000/- per M.T
Castor wheels 240 Nos.
Nuts, Bolts, Screws, Washers, Flats, Rubber Items, Paint, etc.
Total

2.
3.
4.
5.
6.
7.

Amount (Rs.)
55,000/-

6.2.3. Utilities
Power (L.S) Rs. 12,000/Water (L.S) Rs. 3,000/Total

Rs. 15,000/-

6.2.4. Other Contingent Expenses

S.No.
1.
2.
3.
4.
5.
6.
7.
8.
9.

Heads
Rent
Postage & stationery (L.S.)
Telephone (L.S)
Repair & Maintenance (L.S.)
Consumable Stores (L.S)
Transport Charges (L.S)
Advertisement & publicity (L.S.)
Insurance (L.S.)
Sales Expenses (L.S.)
Total

Amount (Rs.)
10,000/5,000/2,000/5,000/5,000/10,000/5,000/2,000/10,000/54,000/-

6.2.5. Total Recurring Expenditure (per month)

S.No.
1.
2.
3.
4.

Staff & labour

Raw Materials
Utilities
Other Expenses
Total

Total Working Capital for 3 months

Amount (Rs.)
90,500/4,44,000/15,000/54,000/6,03,600/-

Rs. 18,10,800/-132-

1,05,000/1,05,000/70,000/60,000/24,000/25,000/4,44,000/-

Adjustable Hospital Beds

6.3. Total Capital Investment

Total Fixed Capital
Total Working Capital (for 3 months)

Rs. 8,36,000
Rs. 18,10,800

Total

Rs. 26,46,800/-

7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
i.
ii.
iii.
iv.
v.

Recurring Expenses
Depreciation on machinery @ 10%
Depreciation on jigs & fixtures @ 20%
Depreciation on office equipment furniture @ 20%
Interest on total capital @ 14%
Total
Say

Rs. 72,43,200/Rs. 51,000/Rs. 25,000/Rs. 20,000/Rs. 3,70,552/Rs. 77,09,752/Rs. 77,10,000/-

7.2. Turnover (per annum)

i.
ii.
iii.

By sale of 250 Nos. Fowlers hospital beds @ 24,000/- Rs. 60,00,000/By sale of 250 Nos. General purposes hospital beds @12,000 Rs. 30,00,000/By sale of scrap (L.S)
Rs. 1,00,000/Total

7.3. Net Profit (per annum)

=
=
=

Turnover cost of production

Rs. 91,00,000 - 77,10,000
Rs. 13,90,000/-

7.4. Net Profit Ratio

=

Net profit per year

X 100
Turnover per year

13,90,000
X 100
91,00,000

= 15.3 %

7.5. Rate of Return

=

Net profit per year

X 100
Total Capital Investment

13,90,000
X 100
26,46,800

= 52.5 %

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Rs. 91,00,000/-

Mechanical Division

7.6. Break-even Point

Fixed Cost per annum in Rs.
1.
Rent
2.
Interest
3.
Total Depreciation
4.
40 % of salaries
5.
40% of other expenses including utilities &
excluding rent & insurance.
Total

1,20,000/3,70,552/96,000/4,34,880/2,01,600/12,47,032/-

B.E.P
=

Fixed Cost
X 100
Fixed Cost + Net Profit

12,47,032
X 100
12,47,032 + 13,90,000

= 47.3 %

ADDRESSES OF MACHINERY SUPPLIERS:

1.

M/s. Kwality Machine Tools, No. 25, JC, Road , Near VSL Building, Bangalore

2.

M/s. K.G. Khosla & Co. Mathura Road, Baddrpur, Delhi

3.

M/s. Indian Oxygen Ltd., Nagaraj road, New Delhi

4.

M/s. Perfect machine Tools, Grant Road, Bangalore

5.

M/s. Batliboi Engineers Pvt. Ltd., 99/2, 99/3, N.R. Road, Bangalore

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