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 building@ 5%			12500
3	Depreciation of machinery@ 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

Sanitizer Stand

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