FMC

Sanitizer Stand

Overview

Product Idea and description

  • A must-have product for post corona-virus scenario in the whole world.
  • This stand allows the user to use hand sanitizer without touching the bottle withthe help of a foot-pedal operated mechanism.
  • Can be set up as household manufacturing unit.

Target group

  • Retailers or e-Marketing
  • Places of high gathering or high frequency of visitors (like industries, Offices, Hotels & Restaurants etc.)

Raw material required

  • Stainless steel pipe, Plates & Strips, Metal wires, Springs, Connecting joints, hardware’s etc.

Production capacity, facility and labour required

  • Small unit – Production capacity 350-375 pcs per month and involving 3 workers (1 design & cutting, 1 assembly, 1Inspection or testing) require approx150-200 sq. ft space.

Production Process

  • Procurement of Raw material, design, cutting, assembly & inspection or testing
  • Proper size of cutting of pipe, stripe or plates according to design & then assemble all the parts

Tools &Equipment’s required for production and prices

  • Power Hacksaw  ( INR 3000-3500) –For cutting the metal pipe, plates pieces
  • Drill Machine (INR 2000-2500) – For making holes in the pieces
  • Welding machine (INR 20000-21000) – For making joints in metals
  • Tools Boxes (INR 3000-4000) – For assembly of joints
  • Electric Paint Spray machine (INR 5000-5500) – For Painting purpose

Financial linkages/ Government schemes

Regional Banks or FIs
PMEGP, SIDBI etc.

Pricing Strategy

       INR800-1200 (20% margin)

Package, storage and transportation requirements

  • Final product is packaged in Plastic film for escaping from moisture.
  • Finished bamboo straws can be stored in dry places

Marketing strategy

Estimate of Market size in India and globally
India hand sanitizing station market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
By Application – Residential, Industrial or commercial
By mode of operation – Automatic & Manual
Major B2B & B2C Portals – indiamart.com, amazon.com, tradeindia.com &flipkarts etc.
Major suppliers–Dolphy India Pvt Ltd, Staietech LLP, Euronics Industries Pvt Ltd, Conmed Devices Pvt Ltd, BPE Innovation Pvt Ltd, NR Hygiene Silutions etc.
B2C & B2B markets -Retailers, hotels/resorts, cafes/joints, Industries or commercial offices etc
Marketing strategy:

  • Tie up with local Retailers which are dealing in sanitization material and its equipment’s
  • E-Marketing also help in selling product direct to consumers

 

Distribution Channel

  • E-commerce, local retailers, buyers

Production stage

Raw Material Procurement like Stainless Steel pipe, strips, Plates, connecting joint, springs, wires and hardware etc.

Design & Cutting-design the product which want to manufacture & cuts the raw material according to design size

Assembly-assemble all the parts and hardwares to make the final product

Inspection & Testing – After the assembly, product passes through inspection & testing to ensure proper working & then painted or final dispatch

Product SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

  • Easy to obtain all the raw material mentioned above.
  • Perfect product for utilization in these hard days
  • Durable and robust, which makes easy usable to all
  • Require less skilled general workforce to operate hand tools and small equipment.
  • Low cost of set-up
  • Heat, Stain and Odour Resistant
  • No  use of energy to operate so it is eco-friendly
  • Can be manufacture in both mode automatic or manual
  • Small knowledge is required to operate.
  • Should be placed in non-moisture or dry area
  • Large place is required to store the raw materials & finish products
  • High demand in these hard days of corona where high gathering of people or visitor exists
  • High market potential
  • Can be market through  via E-commerce platforms viz. Amazon, Flipkart

 

  • Can be sold in small number. Demand arises in large number is possible.
  • Retailer are to approached to cater the local market
  • Delivery cost is high due to weighty products

Financial Plan

One can easily start this business from home as a household unit with working capital requirement (raw material, and labour etc) at 2.39 L payment and per unit cost at around INR800-1200. However, to increase production or manufacturing various varieties of products and keep per unit cost competitive, an industry set up is required. Working capital requirement would be 2.39L per month assuming working capital cycle 30days and total 8 work hours in a day. 

Financial Summery Sheet:

S.No

Parameters

Value (INR)
1

Fixed cost

334550
2

Working capital

2868000
3

Total capital investment

3202550
4

Total cost of  investment

3276761
5

Sales

3600000
6

Net profit

8.98
7

ROI

10.09

 

Fixed and Working Capital Calculation:

Fixed cost

S.No

Parameters

Total Value

1

Land & Building

250000

Machinery & equipment

2

Power Hacksaw & Drill Machine

6000

3

Welding Machine

20000

4

Electric Spray Paint machine & Tool Boxes

9500

5

Other equipment and accessories

5000

6

Electrification & Installation @10 % cost of machinery

4050

7

Pre-operative expense

5000

8

Total cost of machinery & equipment

49550

9

Cost of office equipment

35000

10

Total cost of machinery & office

84550

11

Total fixed cost

334550

 

Working capital

S.No

Parameters

Nos.

INR/Unit

Total Value

1

Workers

3

10000

30000

2

Accountant

1

15000

15000

3

Total Manpower cost

 

 

45000

Raw material & utilities

4

Raw Material

 

 

150000

5

Utility Per month

 

 

25000

6

Water

 

 

1000

7

Total cost of raw material & Utilities

 

 

176000

Other contingent expenses

8

Repair & maintenance

 

 

1000

9

Transportation

 

 

5000

10

Telephone

 

 

500

11

Other consumable

 

 

1000

12

Advertisement & publicity

 

 

2000

13

Postage & stationary

 

 

500

14

Insurance

 

 

7000

15

Miscellaneous expenses

 

 

1000

16

Total of other contingency

 

 

18000

17

Grand total of working capital/month

 

 

239000

18

Grand total of working capital for 12 month

 

 

2868000

 

Financial Analysis:

Financial Analysis

S.No

Parameters

Nos.

INR per Unit

Value

1

Total recurring cost

 

 

2868000

2

Depreciation of [email protected] 5%

 

 

12500

3

Depreciation of [email protected] 10%

 

 

4955

4

Depreciation of office equipment @ 20%

 

 

7000

5

Interest on Total capital investment @12 %

 

 

384306

6

Total cost of Investment

 

 

3276761

7

Sales/ turn over per year

4500 pieces/year

INR 800/piece

3600000

8

Net profit ( sales- cost of production)

 

 

323239

9

Net profit ratio

Net profit*100/sale

 

8.98

10

Return on Investment

Net profit*100/Total capital investment

10.09