POWER LAUNDRY
KSIDC
PROJECT PROFILE
ON
POWER LAUNDRY
Prepared by:
Kerala State Industrial Development Corporation
September 2012
POWER LAUNDRY
KSIDC
POWER LAUNDRY
PROJECT SUMMARY
1
2
3
4
The Proposal
Proposed Location of the project
Products/Services and installed capacity
Market
:
:
To set up a Power Laundry Centre
Kochi
Commercial Laundry Service
There are many star category hotels and multi
specialty hospitals coming up in the region which
can be the target market for this business.The
working upper middle class family can also be
targeted by starting up of small franchisee
outlets(collection centers) at the city for the dry
cleaning business.
The equipments are proposed to be imported
from China
Rs. Lakhs
Land & Land Development
55.00
Building
37.50
Plant & Machinery
50.00
Utilities
20.00
Misc. Fixed Assets
7.00
Deposits
10.00
Consultancy Fee
5.00
Prel. & Preoperative Expenses
30.10
(Including Interest During
Construction)
Contingency
10.80
Margin Money for WC
4.60
Total
230.00
Promoters Contribution
115.00
Term Loan
115.00
Total
230.00
Optimum Utilization (% of installed
80%
capacity)
Sales Turnover (Rs. lakhs)
126.00
Profit before interest, depreciation &
72.47
tax (Rs. lakhs)
Cash Profit (after interest)
43.86
(Rs lakhs )
Net Profit (PAT) (Rs. lakhs)
33.28
Debt Equity Ratio
1:1
:
:
Plant & Machinery
Cost of Project
:
:
:
:
:
:
:
:
:
DSCR (average)
:
:
:
Break Even Point %
IRR (%)
Pay Back period (Years)
:
:
7
Means of Finance
:
:
Profitability at optimum level
:
:
:
:
Financial Indices
1.83
41.93
15.60
4.83
POWER LAUNDRY
KSIDC
:
Moratorium
1
Year
Implemen
tation
Period + 1
Year
10
Manpower
24 Persons
11
12
13
Raw Materials
Utilities - Power
Implementation Period
:
:
:
Washing Chemicals, Perc, Water etc.
100 KVA
Implementation period considered at 12 months
-
PROJECT DETAILS
THE PROPOSAL
The proposal is to setup a Power Laundry Service. The plant is proposed to be imported from China. The total cost
of the project works out to be Rs. 230.00 lakhs.
TECHNICAL DETAILS
Location & Site: About 25 cents of land is required for setting up of the plant.
Plant & Machinery : The following equipments are proposed
Sl.
No.
1
2
3
4
5
6
7
8
Equipment
Cost in
Lakhs
Washing Equipment-30 Kg
Washing Equipment-15 Kg
Dryer-35 Kg
Dryer-15 Kg
Dry Cleaning Equipment
Ironing/Pressing Equipment
Steam Pressing Machine
Other accessories
Total
Rs.
5.00
2.00
3.00
2.00
10.50
5.00
3.00
19.50
50.00
The plant is proposed to be imported from China
Power Requirement: The requirement of power is estimated at 100 KVA.
Manpower:The total manpower requirement for the administration of the facility is 24 numbers. The details of the
employees with designation and numbers are given below:-
Managerial/Supervisory
Skilled
Semi Skilled
Un Skilled
Security Staff/Other Staff
POWER LAUNDRY
KSIDC
Marketing Salaries
Total
4
24
Implementation Period: A one year implementation period is envisaged.
MARKET ASSESSMENT
In house laundry is a service which the hoteliers /hospitals prefer to outsource due to its complexity and
consistency issues. There are many star category hotels and multi specialty hospitals coming up in the region which
can be the target market for this business.
The working upper middle class family can also be targeted by starting up of small franchisee outlets(collection
centres) at the city for the dry cleaning business.
FINANCIAL ASSESSMENT
Cost of the project and its viability indicators are described below
Cost of Project
The total cost of the project envisaged is about Rs. 230.00 lakhs. The breakup of the cost is summarized below.
Land & Land Development
(25 cents of land @ Rs. 2 lakhs per cent)
Building(5000 Sq. Ft X Rs. 750)
Plant & Machinery
Utilities
Misc. Fixed Assets
Deposits
Consultancy Fee
Prel. & Preoperative Expenses
(Including Interest During Construction)
Contingency
Margin Money for WC
55.00
37.50
50.00
20.00
7.00
10.00
5.00
30.10
Total
10.80
4.60
230.00
Means of Finance
The means of finance proposed is as follows:
Promoters
Term Loan
Total
Rs. in Lakhs
115.00
115.00
230.00
The Debt Equity Ratio works out to 1:1 for the project.
POWER LAUNDRY
KSIDC
Cost of operation and Profitability
The assumptions underlying profitability estimates are given below.
Items
CAPACITY AT 100%
Normal Washing
Dry Wash
Average Annual Capacity Utilization
Norms & Assumptions
450 Kg/Day
150 Kg/Day
1yr
50%
II
INCOME
III
Normal Washing Rs. 75/Kg
Dry Wash Rs. 125/Kg
EXPENDITURE-(100% capacity ; Major expenditure)
2yr
3yr
60%
70%
4yr On
wards
80%
Raw Material
Water
Washing Powder
Chemicals for Dry wash
Cost of Consumables
Salary/Labor cost
Power & Fuel Charges
Factory Overheads
Administration overheads
3 Ltrs/ 1 Kg washing
100 gms/ 1 Kg washing @ Rs. 50/Kg
10 gms/ 1Kg washing @ Rs. 143/Kg
Rs. 1.05 lakhs per year
Rs. 10.80 lakhs for 16 staff
Rs. 5.76 Lakhs for admin/managerial staff
Connected Load 100 KVA;
FC per month : Rs. 270 per maximum demand per
Month
Variable Charge : Rs. 4 per KWH
Rs.5 lakhs/year
Selling/Marketing Exp
Rs. 5 lakhs is estimated for the first year of
operation towards administrative overheads. 5%
increase is provided for subsequent years.
1% of Sales
Repairs & Maintenance charges
Insurance charges
2.5% of fixed assets
0.25% of fixed assets.
CONCLUSION
The proposal is found to be technically feasible and economically viable. The selection of plant has an important
role for its consistency and easiness of operation. A visit to a plant already supplied by the suppliers is advised
before finalizing purchase of plant.
For further details please contact Kerala State Industrial Development Corporation Ltd.
POWER LAUNDRY
KSIDC
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 KSIDC or any entities thereof.
