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Bamboo Stic for Incense Making

Incense sticks also called Agarbatti are fragranced sticks used from ancient period by people all over the world. Incense sticks find their way to most homes for religious or fragrance purposes. Agarbatti is a consumer product that the demand is found throughout the year and it increases during festive days. The Agarbatti industry depends heavily on forest products for its raw materials and Bamboo sticks are the major raw materials used in the Agarbatti industry. Now a days, electric operated high capacity round stick making machineries are available for processing of bamboo sticks, which are very much suitable for the industry. These machines are easy to operate and produces quality incense sticks. This project profile is for setting up of a Bamboo Round Stick making unit, based on 300 working days per annum and 8 working hours per day.

layers background

Capacity of the Plant/Unit (at 100% capacity utilization)

72 Ton

Year wise capacity utilization

Year

70%

Year

80%

Year

90%

Year

100%

year

100%

Raw Materials Required

entreprenuearship

Bamboo culms
Packaging Materials

Final Product

Broom

Infrastructure Required

Land

Factory

Building

Plant & Machinery Required

Bamboo cross cutting machine
Manual splitter machine
Bamboo round stick machine
Bamboo stick dryer machine
Bamboo stick polish machine
Bamboo stick sizing machine
weighing machine

Emploment Generation:

1 Manager 1 Sales Person 3 Skilled Workers 1 Watchman

6 Unskilled Workers

Project Cost (subject to respective DPR) In Lakhs

Land (own)	00.00
Civil works and Buildings (1000 sq. ft. @ Rs. 800)	8.00
Plant and machinery	7.96
Miscellaneous Fixed Assets	1.50
D G Set (15 KVA)	1.25
Escalation & Contingencies	0.94
Preliminary & Preoperative Expenses	1.49
Sub-total (A)	21.13
Total Working Capital Required (B)	37.87

Means of Finance In Lakhs

	Amount	Percentage
TERM LOAN (60% of A)	12.68	33%
WORKING CAPITAL (60% of B)	10.04	27%
Total	22.72	60%
Equity	15.15	40%
Total Funds Required	37.87	100%

Financial Benchmarks

	Year	Year	Year	Year	Year
Target Revenue	66.96	72.54	78.12	83.70	89.28
Break Even Point	67%	63%	60%	58%	56%
DSCR including Principal Repayment	2.85	3.47	4.16	4.93	5.82

Basic Assumptions

Power Rate per unit	8.5 Rs./unit
Power Requirement	320484 kwh per year
Interest rate assumed	8.50%
Repayment period	5 months Moratorium and 5 years repayment.

Others

Training Institutes	N.A.
Whether the service is in the Negative list under NEIDS and MSME?	No

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