PROJECT PROFILE ON

POWER LAUNDRY

Prepared by:

Kerala State Industrial Develo !ent Cor oration

September 2012

POWER LAUNDRY PROJECT SUMMARY

: To set up a Power Laundry 1 2

The Proposal Proposed Location of the project

: Co ercial Laundry Service : There are any star cate!ory hotels

Centre Kochi

3 Products/Services and installed capacity

Market

and ulti specialty hospitals co in! up in the re!ion which can "e the tar!et arket for this "usiness# The workin! upper iddle class fa ily can also "e tar!eted "y startin! up of s all franchisee outlets $collection centers% at the city for the dry cleanin! "usiness# i ported fro China

: The e&uip ents are proposed to "e

5
'

Plant & Machinery Cost of Project ( ( ( ( ( ( ( ( ( Land *uildin! Plant & Machinery Co puter )s# Lakhs

Lease Lease
+3,#,,

Furniture
-eposits .ther Prel# & Preoperative /0penses

01.00 01.00
,+#,, ,+#,, ,,#1,

( ( 3 Means of 4inance ( (

Contin!ency Mar!in Money for 2C Tot al Pro oters Contri"ution Ter Loan 5 6PS4C Tot al

+,#,, ,1#,, 135.00 31#,, 1,#,, 85.00 7,: +;'#,, 3;#=3

Profita"ility at opti u

level

.pti u 8tili9ation $: of ( installed capacity% ( Sales Turnover $)s# lakhs% ( Profit "efore interest< depreciation &

( ( ( ( ( ( (

4inancial @ndices

ta0 $)s# lakhs% Cash Profit $after interest% $)s lakhs % >et Profit $P6T% $)s# lakhs% -e"t /&uity )atio -SC) $avera!e% *reak /ven Point : @)) $:% Pay *ack period $Aears%

=3#7' 33#;7 +(+ +#73 =+#?3 +1#', =#73

Moratoriu

+ Aear @ ple en tati on Period B + Ae ar

+ ,

Manpower

;= Persons

+ + + ; + 3

)aw Materials 8tilities 5 Power @ ple entation Period

( ( (

2ashin! Che icals< Perc< 2ater etc# +,, KC6 @ ple entation period considered at +; onths

PROJECT DETAILS THE PROPOSAL The proposal is to setup a Power Laundry Service# The plant is proposed to "e i ported fro China# The total cost of the project works out to "e )s# ;3,#,, lakhs# TECHNICAL DETAILS Locat o! " S t#$ 6"out ;1 cents of land is re&uired for settin! up of the plant# Pla!t " Mac% !#&' $ The followin! e&uip ents are proposed Sl# >o# + ; 3 = 1 ' 3 7 /&uip ent 2ashin! /&uip ent53, K! 2ashin! /&uip ent5+1 K! -ryer531 K! -ryer5+1 K! -ry Cleanin! /&uip ent @ronin!/Pressin! /&uip ent Stea Pressin! Machine .ther accessories Total Cost in )s# Lakhs 1#,, ;#,, 3#,, ;#,, +,#1, 1#,, 3#,, +?#1, 50.00 The plant is proposed to "e i ported fro China Po(#& R#)* &#+#!t$ The re&uire ent of power is esti ated at +,, KC6# Ma!,o(#&$The total anpower re&uire ent for the ad inistration of the facility is ;= nu "ers# The details of the e ployees with desi!nation and

nu "ers are !iven "elow(5

Mana!erial/Supervisory Skilled Se i Skilled 8n Skilled Security Staff/.ther Staff

; ; ' ' =

Marketin! Salaries = Total ;= I+,l#+#!tat o! P#& o-$ 6 one year i ple entation period is envisa!ed# MAR.ET ASSESSMENT @n house laundry is a service which the hoteliers /hospitals prefer to outsource due to its co ple0ity and consistency issues# There are any star cate!ory hotels and ulti specialty hospitals co in! up in the re!ion which can "e the tar!et arket for this "usiness# The workin! upper iddle class fa ily can also "e tar!eted "y startin! up of s all franchisee outlets$collection centres% at the city for the dry cleanin! "usiness# /INANCIAL ASSESSMENT Cost of the project and its via"ility indicators are descri"ed "elow Co0t o1 P&o2#ct The total cost of the project envisa!ed is a"out )s# ;3,#,, lakhs# The "reakup of the cost is su ari9ed "elow# Land & Land -evelop ent $;1 cents of land D )s# ; lakhs per cent% *uildin!$1,,, S&# 4t E )s# 31,% Plant & Machinery 8tilities Misc# 4i0ed 6ssets -eposits Consultancy 4ee Prel# & Preoperative /0penses $@ncludin! @nterest -urin! Construction% Contin!ency Mar!in Money for 2C Tota l Lease

Lease
1,#,, ;,#,, 3#,, +,#,, 1#,, 3,#+, +,#7, =#', 135.00

M#a!0 o1 / !a!c#

The

eans of finance proposed is as follows( Pro oters Ter Loan 5 6PS4C )s# in Lakhs 31#, , 1,#, , 1,#, , The -e"t /&uity )atio works out to +(+ for the project#

Su"sidy 5 @ndustries -ept#

Co0t o1 o,#&at o! a!- P&o1 ta3 l t' The assu ptions underlyin! profita"ility esti ates are !iven "elow# It#+0 APACITY AT 1004 >or al 2ashin! No&+0 " A00*+,t o!0

I
=1, K!/-ay +1, K!/-ay +yr ;yr 3yr =yr .n war ds 7,: II

-ry 2ash 6vera!e 6nnual Capacity 8tili9ation

1,:

',:

3,:

INCOME >or al 2ashin!

-ry 2ash

)s# 31/K! )s# +;1/K!

III E
5 PENDITURE-61004 ca,ac t' 7 Ma2o& #8,#!- t*&#9 )aw Material

2ater 3 Ltrs/ + K! washin! 2ashin! Powder +,, ! s/ + K! washin! D )s# 1,/K! Che icals for -ry wash +, ! s/ +K! washin! D )s# +=3/K!

Cost of Consu a"les Salary/La"or cost

)s# +#,1 lakhs per year )s# +,#7, lakhs for +' staff

)s# 1#3' Lakhs for ad in/ ana!erial staff Power & 4uel Char!es
Connected Load +,, KC6F

4C per onth ( )s# ;3, per a0i u Month Caria"le Char!e ( )s# = per K2G 4actory .verheads 6d inistration overheads
)s#1 lakhs/year

de and per

)s# 1 lakhs is esti ated for the first year of operation towards ad inistrative overheads# 1: increase is provided for su"se&uent years#

Sellin!/Marketin! /0p

+: of Sales

)epairs & Maintenance char!es @nsurance char!es CONCLUSION

;#1: of fi0ed assets ,#;1: of fi0ed assets#

The proposal is found to "e technically feasi"le and econo ically via"le# The selection of plant has an i portant role for its consistency and easiness of operation# 6 visit to a plant already supplied "y the suppliers is advised "efore finali9in! purchase of plant# 4or further details please contact Kerala State @ndustrial -evelop ent Corporation Ltd#

Disclaimer:
The findings contained in this Project Profile are based on the initial information collated through primary and secondary research, which is indicative in nature. Reference herein to any specific commercial product, process, service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by K !D" or any entities thereof.