Wax Candles Business Full Project Report
I. INTRODUCTION:Although it is an age of electrical illumination, light out of wax candles has got its charm and pleasure.
Wax candles in fact are daily house-hold necessity for a few occasional necessity for all including for
churches and others.
II. MARKET POTENTIAL
Candles are mass consumption items and are widely used for lighting and illumination in household,
churches and other religious places, hotels and restaurants etc. the demand for candles is increasing day by day due to its various usage’s. Artistic and decoration candles also have very good potential
III. BASIS AND PRESUMPTIONS:
The estimates are drawn for a production capacity generally considered techno-economically viable for model type of manufacturing activity.
The main raw material for the candles is paraffin wax and is a controlled item and the Directorate of
Industries of the state makes its allocation to the user. The other raw materials i.e stark acid, wick etc.
may be purchased from local market.
IV. IMPLEMENTATION SCHEDULE:
The product is very simple to manufacture just by using moulds. Hence 1-2 months is sufficient for
complete implementation of the project including the processing of moulds and raw materials.
V. TECHNICAL ASPECTS:
1.Process of Manufacturing:
Free wick is to be winded in required moulds in the given grews, lubricate the lubricating oil, screw the moulds as per the number given, melt the wax and add colour mix it well. Pour the melted wax into the ready moulds, keep the moulds for cooling for about ½ an hour, unscrew the plates of the moulds and take out the candles fro it and pack it in either number or weight.
2.Quality Specification :
As per customers requirements.
3.Production Capacity per annum
Quantity: 15 tones per annum
Value: Rs. 4,25,300
4.Motive Power : Only for lighting.
VI. TOTAL CAPITAL INVESTMENTS
| S.No | Description | Value Rs. |
| 1 | Fixed Capital | 27000 |
| 2 | Working capital | 50700 |
| Total cost | 77700 |
VII. MEANS OF FINANCE
1.Promoter's Contribution (5% of total cost) 3885
2.PMRY subsidy (15% of total cost or Rs.7500,whichever is less) 7500
3.Bank loan[total cost-( Promoter's Contribution+ PMRY subsidy) 66315
VIII. FINANCIAL ASPECTS
1. FIXED CAPITAL
i.Land & Buildings: Rented premises at a rent of Rs. 1000 pm.
ii Machinery & Equipment
| S.No | Description | Quantity | Value Rs. |
| 1 | Moulds of various sizes | 20000 | |
| 2 | Wax Melting Vessels | 2000 | |
| 3 | Stove for melting wax | 2000 | |
| 4 | Common Balance | 1000 | |
| 5 | Miscellaneous | 2000 | |
| Total | 27000 |
2. WORKING CAPITAL
i) Staff & Labour per month
| S.No | Designation | No | At Rs. | Value Rs. |
| 1 | Supervisor | 1 | 3000 | 3000 |
| 2 | Semi-skilled worker | 1 | 2000 | 2000 |
| Total | 5000 |
| S.No | Description | Quantity | Value Rs. |
| 1 | Paraffin wax | 1250 kg. | 37500 |
| 2 | Wicks | 54 bundles | 2000 |
| 3 | Lubricating oil | 500 | |
| 4 | Packing materials | 1300 covers | 1000 |
| Total | 41000 |
iii. Utilities per month
| S.No | Description | Value Rs. |
| 1 | Power | 500 |
| 2 | Water | 200 |
| Total | 700 |
iv. Other expenses per month
| S.No | Description | Value Rs. |
| 1 | Conveyance, postage, telephone | 1500 |
| 2 | Printing , stationery, misc. expenses | 1500 |
| Total | 3000 |
v. Total working capital per month
| S.No | Description | Value Rs. |
| 1 | Rent | 1000 |
| 2 | Staff and labour | 5000 |
| 3 | Raw materials | 41000 |
| 4 | Utilities | 700 |
| 5 | Other expenses. | 3000 |
| Total | 50700 |
IX. COST OF PRODUCTION PER ANNUM
| S.No | Description | Value Rs. |
| 1 | Total working capital | 608400 |
| 2 | Depreciation | 2000 |
| 3 | Interest | 11655 |
| Total | 622055 |
X. TURNOVER PER YEAR
| S.No | Item | Quantity | Rate | Value Rs. |
| 1 | Wax Candles | 15 MT | 45 /MT | 675000 |
| Total | 675000 |
XI. FIXED COST PER YEAR
| S.No | Description | Value Rs. |
| 1 | Depreciation | 2000 |
| 2 | Interest | 11655 |
| 3 | Rent | 12000 |
| 4 | 40% of salaries & wages | 24000 |
| 5 | 40% of other expenses (utilities + OE) | 17760 |
| Total | 67415 |
XII. PROFIT ANALYSIS
Net Profit : sale-total cost=675000-622055=52945
% of Profit on Sale: Profit / Sale x100 =52945/675000]100=7.84%
% of Return on Investment: Profit / (Investment) x 100=52945/77700]100=68.14
Break-Even Analysis : FC / (FC+Profit) x100=67415/67415+52945]100 =56%
XIII. MACHINERY SUPPLIERS
Local dealers and manufacturers.
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