Face Mask Project Report and Making Business Plan in India
Introduction
Surgical Face Masks (SFMs) have been in huge need of the pandemic associated with the novel Coronavirus (COVID-19) which emerged from Wuhan, China that has infected hundreds of pf people across the globe. Before the occurrence of COVID-19 which is also known as SARS-CoV-2, face masks were exclusively in hospitals and healthcare units.
As per the Association of Indian Medical Device Industry, about 240 million disposable masks are manufactured by companies every year for domestic use. People never thought that they will be in use in 2020 or further in their day-to-day lives. SFMs and PPE-Personal Protective Equipment kits have become an inevitable product for the few medical sectors for survival.
Types of Face Masks
With the increasing demand for face masks across the globe, numerous SME and MSME manufacturing plants have emerged and started developing surgical face masks in bulk daily. The production capacity varies between 20,000 – 1,00,000 masks daily, however, the number could vary from plant to plant.
To avoid and be safe from viruses, people are using 3 kinds of face masks popular as homemade cloth masks, surgical masks, and N95 masks. Surgical face masks are produced by non-woven fabrics made from a plastic material such as polypropylene that is seen in two-layer or three-layered varieties.
A Guide to Face Mask Project Report – Making Business Plan
To initiate a face mask manufacturing business, entrepreneurs have to know that India’s surgical mask market is divided into two segments. The first segment is a product-based one, where the market is further segregated into the manufacturing of N95 respirators, anti-fog surgical masks, basic surgical masks, fluid/splash unaffected masks, etc.
Distribution is the second segment in which the surgical market is segregated into medical stores, clinics, pharmacies, healthcare centers, medical stores, and hospitals. Considering these two channels, owners can select from these two business separations, such as mask production and distribution, or can consider both.
Procedure to Start a Surgical Face Mask Making Business in India
Step 1: Craft a proper Business Plan – This plan should contain all the business information such as details of equipment and machinery, details of workers, total budget, working capital or investment estimated, marketing and advertising policies planned, etc.
Step 2: As per the Company Registration Act, the individual must acquire business registration as a public limited company, as a sole proprietorship company, or private registration, like a partnership firm or limited liability partnership under the Ministry of Corporate Affairs (MCA).
Step 3: Acquire ISI standard registration which is obligatory and do the MSME (Micro Small and Medium Enterprise) registration, if possible.
Step 4: Finalize or take space on rent at a proper region to install necessary machinery with followed steps and required provision.
Step 5: Get the Shop and Establishment Act permission by consulting with state authority, as per the state rules in which the unit is planned to set up.
Step 6: Buy and install equipment/machinery and associated stuff in the rented or selected area.
Step 7: Appoint workers for starting the manufacturing method after giving them proper machinery training.
Machinery required to start Face Mask Making Business
Types of machines that can be utilized in the face mask manufacturing process:
- Face Mask Machines
- Mask Inner Ear Loop Welding Machine
- Non-Woven Mask Blank Making Machine
- Tie on Mask Making Machine
An example of an ideal face mask manufacturing machine is stated below:
- Non-Woven Face Mask Making Machine
- A Fully Automatic Tie Face Mask Machine
- Price: Rs. 15 lakh (approx.)
Machinery Information:
Capacity: 60 to 80 pcs per minute
Usage/Application: To Make Tie Face Mask
Model: KP-1001
Size: 3000 mm x 1500 mm x 1200 mm
Power Source: 5KW
Power Supply: Single Phase
Brand: KP Tech
Specifications of the machinery used in Face Mask Making Business
Supply Power: AC 380 v or 220 v 50 Hz
Net Weight: 800 Kg
Designed Speed: 80 Pcs per minute
Optimum Speed: 60 Pcs per minute
Dimension: Mask Machine: 2000 X 600 X 1200 mm
Feeding Frame: 1600 X 550 X 1400 mm
Conveyor Belt: 1770 X 330 X 900 mm
Financial aspects in Face Mask Manufacturing Business
Fixed Capital
Land and Building (On Rent): Rs. 30,000/-
Machinery & Equipment:
Blank Mask Making Indigenous machine cap 100 to 120 mask/min Rs. 16,00,000
Ear loop fixing machine cap 35to 40 masks/min Rs. 32,00,000
Stabilizer Rs. 80,000
Compressor Rs. 60,000
Packing/Sealing Machine Rs. 10,000
Sterilization Unit Rs. 5,00,000
Electrification and installation charges @ 10% of cost of machines and equipment Rs. 5,45,000
Total cost of machinery & Equipment etc. Rs. 59,95,000
Cost of office equipment / Working table, Almeerah, Computer etc. Rs. 2,05,000
Total cost of the Machines Rs. 62,00,000
10 Pre-operative expenses Rs. 1,00,000
Total Fixed Capital Rs. 63,00,000
Working Capital
Manager –cum-Prod. Inchage Rs. 25,000
Skilled Worker Rs. 36,000
Accountant/Store Keeper Rs. 15,000
Worker Rs. 45,000
Peon cum Watchman Rs. 24,000
Total Salaries Rs. 1,45,000
Perquisites @ 15% of Salaries Rs. 21,750
Total: Rs. 1,66,750
Say Rs. 1,67,000
Raw Material including Packaging Requirement (Per month)
Non-Woven Fabric Rs. 1,25,000
Mett Blown Fabric Rs. 4,80,000
Nose Wire Rs. 70,000
Ear Loop Rs. 2,40,000
Packing Material Rs. 1,00,000
Total Rs. 10,15,000
Say Rs. 10,15,000
Utilities (Per month)
Power Rs. 25,000
Water Rs. 2,000
Total utilities: Rs. 27,000
Other Consignation Expenses (Per month)
Factory Rent Rs. 30,000
Postage and Stationery Rs. 1,000
Telephone Rs. 3,000
Consumable Stores Rs. 1,000
Repair and Maintenance Rs. 15,000
Transport Charges Rs. 5,000
Advertisement and Publicity Rs. 5,000
Insurance Rs. 8,000
Taxes Rs. 10,000
Miscellaneous Expenditure Rs. 5,000
Total Rs. 83,000
Total recurring expenditure (per month)
Rs. 1,67,000 + Rs. 10,15,000 + Rs. 27,000 + 83,000 = Rs. 12,92,000
Total working Capital Rs. 12,92,000 X 3 = Rs. 38,76,000
(i) Fixed Capital Rs. 63,00,000
(ii) Working Capital Rs. 38,76,000
Total Rs. 1,01,76,000
Financial analysis in Face Mask Manufacturing Business
Cost of Production (Per Year)
Total recurring cost per year Rs. 1,55,04,000
Depreciation on Machinery & Equipment @ 10% Rs. 5,99,500
Depreciation on Office Equipment @ 20% Rs. 41,000
Interest on total capital investment @ 13% Rs. 1,32,880
Total cost of production Rs. 1,74,67,380
Say Rs. 1,74,67,000
Turn Over
Non-Woven 3 layers Face Masks Rs. 2,03,50,000
Net Profit
Turn Over – Cost of Production = Profit
= Rs. 2,03,50,000 – Rs. 1,74,67,000 = Rs. 28,83,000
Net Profit Ratio = Net Profit per year x 100/Turn Over per year
= 28,83,000×100/ 2,03,50,000 = 14.16 %
Rate of Return = Net Profit per year x 100/Total Investment
= 28,83,000×100/1,01,76,000 = 28.33%
Break Even Analysis
BEP% = F.C. x 100/F.C. + Profit = 2069000 x100/2069000+2883000 = 41.78%.
Conclusion of Face Mask Project Report
In case if you miss this: How To Start A Sugar Mill Business.
The face mask manufacturing business is attaining the actual attention for the need for face masks has increased significantly in the past few months. MSMEs and small business owners have changed from their present businesses and newly started to invest in all types of face masks manufacture to fight against deadly COVID-19 and thereby gain good income.
At present, there is not much opposition and there are not many face mask manufacturing factories in India, therefore we are depending on imported masks from various countries. This particular market sector is yet to be discovered and capitalized. Hence, entrepreneurs, business owners, and enterprises can avail even business loans, term loans, or working capital loans to initiate a new business or to plan to alter their current business into face mask manufacturing plants. They can try to search various financial institutions to easily check and the available business loan offers at various interest rates.
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