Clay Utensils Project Report, Business Plan

Introduction to clay utensils project report, manufacturing process, and business plan: In the previous times, when there was not much use of plastic glass, people used glasses prepared by mud. Even the popular beverages like tea and lassi were served in a mud glass to the consumers. For cooking purposes too, the metal utensils were not used and clay vessels were extensively utilized. One can keep clay vessels at home to store water; this is still used to keep water cool. Nowadays, a majority of people have minimized their usage of plastic which has been considered harmful to both environments and thereby humans. On the other hand, using these vessels is a popular fact that the nutrients in these items are sustained. This is the main cause why even the government is allowing people to permit the use of clay products in day to day works. In the present article, we will highlight some extra and essential elements associated with this pottery business.

A guide to clay utensils project report, manufacturing process, and business plan

How to make clay utensils
Clay utensils (Image source: pixabay)

Business plan for starting Clay Utensils Manufacturing: For starting Clay Utensils Manufacturing Business, you need to design a perfect business plan by considering the following points:

  • Industrial Outlook and Business Trends
  • Market demand of the Clay Utensils
  • Basis and Presumptions of Clay Utensils Manufacturing Business
  • Implementation schedule of Clay Utensils Manufacturing Business
  • List of approvals required for starting the business
  • Raw materials and machinery required for starting Clay Utensils Manufacturing Business
  • Manufacturing process of Clay Utensils
  • Project economics of Clay Utensils Manufacturing Business
  • Marketing strategies to promote the product

Basis and Presumptions of Clay Utensils Manufacturing Business

The project profile relies on the following assessments:

  • Working hours/shift: 8 hrs.
  • No. of shift/day:1
  • Working days: 300
  • Labor expenses: According to State Government’s Minimum Wages Act.
  • Rate of interest: 15% per annum
  • Costs of machinery and equipment: Taken based on A particular dealer
  • Value of raw material: As per local market Packing material/others rate (on wholesale rate)
  • Land: owned
  • Building Construction charge: About Rs. 2000 per sq. ft.
  • Break-even point will be estimated on a full capacity utilization basis
  • Pay-back time is 7 years

Implementation schedule of Clay Utensils Manufacturing Business

  • Acquisition of premises 1 month
  • Construction (if applicable) 2 months
  • Procurement for installation of Plant Machinery 2 months
  • Arrangement of Finance 1 month
  • Recruitment of required manpower 1 month
  • Total time required (some activities shall run concurrently) 7 months

List of approvals required for starting Clay Utensils Manufacturing Business

Below is the quick check list of the approvals required for starting the Clay Utensils Manufacturing Business.

  • Register your business identity
  • MSME registration
  • GST registration
  • ROC
  • Get the PAN Card
  • Registration of firm
  • Shop Act License
  • FSSAI License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate from pollution board
  • Trade license from local municipal authority

Market potential for Clay Utensils Manufacturing Business 

The plastics plates have been extensively used by the food sector which is affecting the environment. After the meal is complete, which is served in the plastic containers, they are not properly disposed of in major areas and we can see them at different areas like railway stations, hotels, bus stations, etc. This is highly increasing a large amount of garbage and causing pollution. This has been identified by the government and leads to the ban on plastic use in the market, and as a result, a huge has been established for synthetic replacement materials. The clay utensils are eco-friendly and not much expensive. Thus, this shows that the product has the potential to get huge income since the manufacturing price is low and demand is more.

Raw materials required for starting Clay Utensils Manufacturing Business

Similar to any other manufacturing business, the kulhad or clay utensils making business demands raw materials. Here, we require high-quality clay which is gathered from the riverbank. It would aid if you also get individual molds to produce various shapes readily present in the market. The various sizes of molds can be purchased from the market easily at less price. Additionally, it would be very significant if a furnace is also built for heating the raw molds for you as pots are placed in the furnace for complete drying.

Machinery required for Manufacturing Clay Utensils Manufacturing Business

In the initial days of your business, one does not require machinery, but after few days when you have got some expertise in the industry, you can get an idea o how the machines will be used for this business and its mechanism. The machines are easily available from the local market at a sensible cost. So, it is so easy to obtain them whenever you are in the position to buy them. By using machines, the efficiency will be more and the products will be formed much earlier than usual, and it will assist you to earn more earnings in less duration from your business. 

Area required for starting Clay Utensils Manufacturing Business

In case if you miss this: Hing Manufacturing Project Report.

Making a clay pot
Making a clay pot (Image credit: pixabay)

The clay products do not demand any particular area with excellent amenities. The only aspect which must be kept in mind is that one must have a place for drying the raw products. The raw products soon after preparation are placed under sunlight for drying and this is an essential step while clay products are made. It would be for furnace, so while very simple if one has a furnace so while identifying the location, be cautious and choose as per your requirements.

Manufacturing process of Clay utensils

It will be easy if one gets good quality clay from the river bank and has to grind the soil in a machine which is commonly seen while grinding wheat. This powdered soil is left for some hours and now water will be included to prepare the dough of clay and knead the mixture properly. Then it will be positioned in the mold and using a rotating machine shape will be the desired shape will be attained.

Once the shape is formed, remove clay out from the dough, and for it, one must use powdered soil. Then it is left for drying under the sunlight. After allowing the raw product for the natural drying process, you can add them to the furnace as well to make the product much robust.

Once the clay products become red, you can separate the clay pots from the furnace and allow them for cooling purposes.

Packaging of Clay Utensils

While doing business with the clay items it is very important to pack the clay pots carefully so that they are not damaged while being transported to market. One has to buy individual packaging boxes when the product will be transported to the market. The packing materials must be appropriate pack fragile objects, which is why you have to purchase materials from a reliable supplier with high-quality.

Clay Utensils Project Report/ Economics of Clay Utensils Manufacturing Business

How about this: Jute Rope Manufacturing Project Report.

 Economics of Clay Utensils Manufacturing
Economics of Clay Utensils Manufacturing (pic source: pixabay)

Fixed Capital

a. Land and  Building: 600 Sq. ft. @ Rs. 10,000

b. Machinery and Equipment: Rs. 4,25,000.

Working Capital

A. Staff and Labor: Rs. 1,72,000

B. Raw material per month: Rs. 1,76,675

C. Utilities per month: Rs. 8,000

D. Other Contingent Expenses per Month: Rs. 1,75,000

Total Working Capital per month = A + B + C + D = 1,72,000 + 1,76,675 + 8,000 + 1,75,000

= Rs. 5,31,675.

Total Capital Investment

Fixed capital = Rs. 4,25,000

Working Capital (on 3 months basis) = Rs. 15,95,025

Total = Rs. 20,20,025.

Financial analysis of Clay Utensils Manufacturing Business

a. Cost of Production (Per Year): Rs. 66,24,603

b. Turnover (Per Annum): Rs. 72,00,000

c. Net Profit Per Annum:

Net Profit = Turnover per Year – Cost of Production = Rs. 72,00,000 – Rs. 66,24,603 = Rs.


d. Net Profit Ratio = (Net Profit per year / Turnover per Year) X 100 = (575397 / 7200000) X 100 = 7%

e. Rate of Return = (Net Profit per year / Total Investment) X 100 = (575397 / 2020025) X 100 = 28.48%.

Break-Even Point (B.E.P.)

Interest on investment @ 10%: Rs. 2,02,003

40% of wages and salaries: Rs. 68,800

40% of other expenses (except rent): Rs. 70,000

Rent: Rs. 1,20,000

Total: Rs. 4,60,803

Break- Even Point (B.E.P.) = [Fixed Cost/ (Fixed cost + Profit)] X 100 = 460803/(460803+575397) X 100 = 460803 / 1036200 X 100 = 44.47%.


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