NSIC

Project Profiles

WOODEN FURNITURE
1. INTRODUCTION
The demand for the furniture made up of woods is growing due to the increased
standard of living of people and outlook. On occassions like wedding, it has become
customary to gift wooden furniture like double bed, sofa, dressing table, dining table
to the daughter.
2. MARKET
As the furniture would not have any fixed brand or company name, therefore, there
would be less competition.
Wooden furniture also required in government and commercial establishments. Due
to non-availability of wood, these days wood is being imported from countries like
Malaysia, Sri Lanka, etc. For manufacture of furniture, wood is available from the
local depots/forest areas. There is ever growing market for wooden furniture.

3. MANUFACTURING PROCESS
The line of process is used for wooden furniture is made as per the measurements;
shaping, bending & chistling as per design; finishing touch with sand paper; finally
apply varnish/paint/lamination; and furniture can be laminated using laminated
sheet.
4. PRODUCTION CAPACITY PER ANNUM
S.No
Particulars
1
2
3
4
5
6

Nos.

Sofa with centre table

Sofa with centre table
Dining table with six chairs
Double bed
Dressing table
Other scrapes of wood, dust, chips,
etc
Total

Rate
36
36
36
36
60
36

5500
5000
6000
5000
2200

204

Total Amt.
198000
180000
216000
180000
132000
20000
926000

5. PROJECT COST/CAPITAL INVESTMENT

S.No

1
2
3

Description

Fixed Capital
Working Capital for
Preliminary & Preoperative Expns
Total Project Cost

Amount Rs.

month(s)

47000
71825
10000
128825

NSIC

Project Profiles

6. MEANS OF FINANCE
S.No

1
2
3

Description

Promoter Contribution
Subsidy /Soft Loan
Term Loan
Total

%age

Amount Rs.

15%
20%
65%

19324
25765
83736
128825

7. FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land and Buildings

Rented

Rs. 2000

per month

ii. Machinery and Equipment

S.No

2
3
4

Description

Qty.

Automatic wood working machine,

surface and thickness planner, circular
saw, drilling and grinding attachment of
2 HP motor
Other tools like haksa, benchwise
hammer, etc
Electrification and installation
Miscellaneous expenses
Total

Rate

Amount Rs.

LS

40000

LS

5000

LS
LS

2000
1000
47000

Nos.

Sal/mon. Amount Rs.

B. WORKING CAPITAL
i. Salaries & Wages (per month)
S.No

1
2
3

Description

Carpenter/Entrepreneur
Skilled labours
Unskilled labours
Total

1
1
2

2500
2000
1000

2500
2000
2000
6500

ii. Raw Material (per month)

S.No

1
2
3
4
5
6
7
8

Description

Sheesham, teak, wood, etc

Ply
Sunmaica
Plane glass of thickness
Mirror
Cushions
Fevicol
Others
Total

Unit

Qty.

cu ft
sq ft
sq ft
Nos.
Nos.
sets
kg

60
725
300
3
3
5
30
LS

Rate

500
11
17
1000
250
1200
160

Amount Rs.

30000
7975
5100
3000
750
6000
4800
200
57825

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Project Profiles

iii. Utilities (per month)

S.No

1
2

Description

Unit

Power
Water

LS
LS
Total

Amount Rs.

2000
500
2500

iv. Other Expenses (per month)

S.No

1
2
3
4
5

Description

Amount Rs.

Postage & Stationery Expenses

Conveyance expenses
Repairs and maintenance
Insurance
Miscellaneous Expenses
Total

500
500
500
1000
500
3000

v. Total Working Capital (per month)

S.No

1
2
3
4
5

Description

Amount Rs.

Rent
Salaries and Wages
Raw Material
Utilities
Other Expenses
Total

2000
6500
57825
2500
3000
71825

8. COST OF PRODUCTION (PER ANNUM)

S.No

1
2
3

Description

Total Working Capital

Depreciation
Interest
Total

Amount Rs.

@
@

861900
7050
10048
878998

15%
12%

9. TURNOVER (PER YEAR)

S.No

1
2
3
4
5
6

Description

Unit

Sofa with centre table

Nos.
Sofa with centre table
Nos.
Dining table with six chairs
Nos.
Double bed
Nos.
Dressing table
Nos.
Other scrapes of wood, dust, chips, etc LS
Total

Qty.

36
36
36
36
60
36

Rate Rs.

5500
5000
6000
5000
2200

Amount Rs.

198000
180000
216000
180000
132000
20000
926000

NSIC

Project Profiles

10. FIXED COST (PER YEAR)

S.No

1
2
3
4
5

Description

Depreciation
Interest
Rent
Salaries & Wages
@
Other Expenses incl. Utilities @
Total

Amount Rs.

7050
10048
24000
31200
26400
98698

40%
40%

11. PROFIT ANALYSIS & RATIOS

1
2
3
4

Net Profit
Percentage of Profit on Sales
Percentage of Return on Investment
Break Even Point

Rs.

47002
5%
36%
68%