Introduction to Project Report for Areca Leaf Plate Making: Areca leaf plates are considered to be the best substitutes to Plastics/Polymer based items and also Paper-based goods about which the entire globe is concerned. A 100% natural process is practiced during the manufacturing of these plates. The shredded areca leaf is gathered from cultivated regions. The Sheath of the areca leaf will be properly cleaned and placed in water for almost 15 minutes and shade dried for half an hour. They are then crushed to various shapes with the help of similarly shaped Machines. They are further packed as per the client’s need.
A guide to Project Report for Areca Leaf Plate Making, Manufacturing Process, and Business Plan
Benefits of Areca Plates
- They are bio-degradable, eco-friendly, and compostable.
- There is no need for cutting any trees, as the shredded leaves are only accumulated used for the manufacturing process. This is rightly seen as a waste to wealth idea.
- During the manufacturing, none of the chemicals, or PE (Poly Ethylene) coating and bleaching steps are necessary.
- They are tough, lightweight, and non-crushable.
- They are safe to microwave and can be refrigerated.
- Can preserve liquid items for up to 4 hours without any seepage.
- Best options for wet, hot, and cool eatables.
Business plan for starting Areca Leaf Plate Project Report
If you are in the arrangement to initiate an Areca Leaf plate manufacturing center then you need to craft up a comprehensive and thorough business report because this market is already present. Your plan should not only be restricted to its manufacturing but also include supply, marketing policies, and returns. Here we will elaborate on how you can begin an Areca Leaf plate manufacturing unit.
- Market demand
- Basis and presumptions
- Implementation schedule
- List of approvals required
- Raw materials and machinery required
- Manufacturing process
- Project economics
- Marketing strategies to promote the product
Market demand for Areca Leaf Plates Manufacturing Business
1. Mainly the high-grade plates will be sent for the international market.
2. Next, the quality plates will be sold to local markets to the dealers, food restaurants, supermarkets, and caterers.
Areca Plates are useful on several occasions such as parties, picnics, buffets, outdoor catering, functions, food corners, temples, etc. This product is having a perfect scope in states like Delhi, Maharashtra, Madhya Pradesh, and Tamil Nadu. These plates proved as the perfect best subsites for plastics and hence they proved to be best in the market in the international market as well.
Basis and Presumptions of Areca Leaf Plate Manufacturing Business
The Areca Leaf Plate Manufacturing Project Profile relies on the following assessments:
- Working hours/shift: 8 hrs.
- No. of shift/day:1
- Working days: 300
- Labor expenses: as per the 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
- Break-even point will be estimated on a full capacity utilization basis
- Pay-back time is 5 – 7 years
Implementation schedule of Areca Leaf Plate Manufacturing Business
The project implementation schedule of Areca Leaf Plate Manufacturing Business
- Project preparation: 0-1 month
- Location selection, acquisition of 1-2 months land and land development
- Loan Sanction: 1-3 months
- Building construction: 3-4 months
- Connection of electric supply and water: 4-5 months
- Obtaining machinery: 5-6 months
- Electrification & installation: 6-7 months
- Recruitment of staff and workers: 7-8 months
- Trial run can be initiated in 8-10 months
- Commercial production could start from 10-11 months
Licenses required to start Areca Leaf Plate Manufacturing Business
Documentation and proper approvals: You must be prompt with these essentials by getting proper permission from the respective authorities. Paperwork like appropriate power connection, water supply provision, business registration, obtain GST, and few others.
Requirements for starting an Areca Leaf Plate Manufacturing Plant
There’s not much needed to start the Areca Leaf Plate manufacturing business. A few of the basic requisites are highlighted below.
Employment Opportunity in Areca Leaf Plate Manufacturing Business
The rural area is carefully chosen to generate employment. This is even useful for the owner as the labor and manufacturing shed will be available at less rate.
Hiring workers for Areca Leaf Plate Manufacturing Business
In our country, India around 4 Lac Hectares of Areca Crop is being cultivated, near about 5400 million Areca leaves which fall off from the tress and channelized as Agro waste. These leaves are now useful and recognized as value-added products.
Around 1,95,000 leaves are required for an Areca leaf plate manufacturing unit annually. In this condition, approximately 27700 plate manufacturing units could be arranged across the country. 1.5 lakh new job roles are generated with these 27700 units. This Particular project can develop “A Rural Employment Revolution” in our nation.
Currently, only 1500 units are there across India in various regions. In that, around 1000 units have been established and concentrated to south India. The major chains of raw materials for south Indian units are Salem and Coimbatore in Tamil Nadu, Tumkur, Shimoga in Karnataka state, and parts of Kerala.
Project Report/ Economics of Areca Leaf Plates Manufacturing Business
In case if you miss this: Cinnamon Oil Project Report.
Here, we have added an estimated analysis for Areca Leaf Plates making for your ease and immediate reference.
Machinery and Equipment: Rs. 6,50,000
Recurring expenditure (per month)
Raw Material Per Month: Rs. 2,55,100
Salaries and Wages Per Month: Rs. 30,475
Utilities Per Month: Rs. 4750
Utilities Per Month: Rs. 12500
Total recurring expenditure per month: Rs.3,02,825/-
Recurring Expenditure for 3 months: Rs. 9,08,475/-
Working capital assessment: Rs. 6,50,000.
Financial aspects for Areca Leaf Plates Making Business
Total Project Cost required to start Areca Leaf Plates Making Business
Plant and Machinery: Rs. 16,50,000
Working capital: Rs. 16,50,000
Total: Rs. 13,00,000
Total Project Cost: Rs. 13,00,000
Promoter contribution 10%: Rs. 1,30,000
Total: Rs. 11,70,000
Finance required from the Bank: Rs. 11,70,000/-.
Cost of production per annum
Total recurring cost: Rs. 36,33,900
Interest on Bank Loan @12.5%: Rs. 1,46,250
Total Depreciation on Machinery & Stabilizer @15%: Rs. 90,000
Total Depreciation on furniture’s and other equipment’s @ 20%: Rs.5,000
Total: Rs. 38,75,150.
Turnover Per Annum
By sale of 1,20,00,000 nos. of Areca Leaf Platess @ Rs. 0.39: Rs. 46,80,000/-.
Profit Per Annum
Turnover – Cost of Production = Rs. 46,80,000 – Rs. 38,75,150 = Rs. 8,04,850/-
Percentage of profit on sales = Profit/annum X 100/Turnover = 8,04,850 X 100/46,80,000 = 17.2%.
Rate of Return
Rate of Return = Profit per annum x 100/Total Capital investment = 8,04,850 X 100/13,00,000 = 61.91%.
Break Even Analysis
Fixed expenditure per annum:
Interest on Loan: Rs. 1,46,250
Total Depreciation: Rs. 95,000
40% of salary and wages: Rs. 1,46,280
40% of other expenses & Utilities: Rs. 1,82,800
Total: Rs. 4,70,330.
Profit in Areca Leaf Plates Making Business
Profit per annum: Rs. 8,04,850/-
Break-Even Point = Fixed Cost per annum x 100/fixed cost per annum + Profit per annum = 4,70,330 X 100/1275180 = 36.88%.
1. Food plates discarded after eating will get degraded naturally in two months similar to any plant material.
2. The Areca sheaths manufacturing will result in some waste that could be used for vermicompost, bio-fuel bricks, and as dry fodder for animals.
Marketing strategies to promote your Areca Leaf Plates
You may also check this: Neem Cake Project Report.
You can promote your product through online websites like B2B and B2C websites. Also, approach online selling stores. Later you can target marriage functions, parties, and other hotels also.
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