Introduction

Project Report for candle manufacturing is as follows:

India is a vast country and the Indian people follow various religions, speak different languages and follow different customs and traditions. In spite of this diversity, one thing is common among all Indians is they are all deeply religious and practice their religious activities on a daily basis. So depending upon their belief, practice method and convenience, almost all the people use any one or two from agarbatti(incense sticks), candles or Kapoor(camphor tablets). Candle making is an art. A skilled candle maker makes beautiful designs and styles of candles which you can behold all day long. Many people learn candle making as a hobby, while, they can also make it a successful business. If you are interested to start a candle making business, then take candle making classes so that u gain skills in this art, which would further help you to make good profits in your business. India has huge production as well as consumption of candles, which has given candle making the market a strong foot in the economy. This is emerging to be a great business idea in India. Also, India is a country famous for its rich culture and traditional festivals. Festivals like Diwali, Janmashtami etc. are known for candle decoration. India shimmers in candle lights during these festivals. Which clearly means, huge usage of candles. Thus, candle making idea is a great proposition for business in this country.

Scope of the project

Candles are mass consumption items and are widely used for lighting and illumination in household, churches and other religious places, hotels and restaurants etc. the demand for candles is increasing day by day due to its various usage’s. Artistic and decoration candles also have very good potential. Consumers are increasingly purchasing candles for their home decor, and for aromatherapy-like stress reduction and relaxation. The ease of purchase as well as the availability of various type of candles on multiple distribution channels is prompting more and more people to purchase these products. Proliferation in the number of distribution channels has benefited the sales through department, mass merchandise retailers and home decor stores.

Product / Services & process

Wax candles (scented) & Normal candles

.Process:

Free wick is to be winded in required moulds in the given grews, lubricate the lubricating oil, screw the moulds as per the number given, melt the wax and add color and scent mix it well. Pour the melted wax into the ready moulds, keep the moulds for cooling for about 5-8 minutes, unscrew the plates of the moulds and take out the candles from it and pack it in either number or weight.

Raw materials / Consumables

Wax candles:

1. stearic acid

2. paraffin wax

3. thread

4. color

5. perfume

6. lubricant oil

7. designer ribbon

8. packing boxes

9. shink wrap polyethylene

Market potential & Strategy

Candles having a huge demand in the domestic market as well as foreign countries, mainly in the USA and European countries. india supply almost 90% of world countries these products. many export companies are based in Delhi, Mumbai, Kolkata, and Bangalore Hence marketing is not at all a problem for this product. They collect products directly from the site. The products are having a great demand in the domestic market also. There are many other manufactures engaged in the production of similar products. The demand is very high and usually, the supply cannot meet the demand.

Export Potential of agarbatti and related products which operate by burning

Exports have grown manifold in the last five years
Value of exports for perfumed agarbatti and camphor tablets increased more than 100 percent in the last five years
Indian agarbatti and related products exported to over 90% of countries in the world
USA, Thailand, Japan are the top importer market
High growth in export implies the proven capability of manufacturing the right quality of products which are accepted globally
India has the potential to become leading agarbatti and related products producer in the world

The export of agarbatti and related products records an average growth rate of 25.7 %, which shows the potential and scope of this industry.

Marketing Strategy

The promoters have years of experience in this field and have business contacts with many direct and indirect distributors of the market. They also know the specifications of export quality products and the way to manufacture it. As the demand has not yet met by the production, 100 % of the products can be sold for exports. MoU can be signed with the exporters. Being well aware of the export market and agencies, competent price can also be ensured by effective bargaining. In case of any troubles happen in the export market, the products can be easily sold out in the domestic market; both inside and outside the state through distributors. Therefore marketing is not at all a headache for the agarbatti and related products. promoters are also in touch with the executive of India mart, trade India, amazon b2b, for online b2b bulk selling, and promoters also planning to go to online retailing of the products with Flipkart and Amazon,

Project at a glance

Name & Address of Unit

Candle Manufacturng

Address

Details of unit

Email	:	[email protected]
Phone	:	000000
Constitution	:	Proprietership
Total project cost	:	*******
Fixed Capital	:	*******
Working Capital	:	*******
Total Bank loan	:	*******
Promoter(s) contribution	:	*******
Term loan	:	*******

Name & address of promoter(s)

Name		: Your namee
Address		: Address
Phone		: 000000
Designation		: proprietor
E-mail		: [email protected]

Project Feasibility Ratios

Debt Service Coverage Ratio (Average)

:1.87

Current ratio (Average)

:2.63

	Year 1	Year 2	Year 3	Year 4	Year 5
Current ratio	1.53	2.06	2.62	3.19	3.76
Quick ratio	1.13	1.56	2.10	2.64	3.18
Interest coverage ratio	3.87	5.55	7.00	9.48	14.71
Debt equity ratio	2.863	2.080	1.528	1.020	0.542
TOL/TNW	3.02	1.45	0.79	0.43	0.21
DSCR	1.65	1.86	1.90	1.94	1.97
Gross profit Sales Percentage %	29.23 %	28.54 %	28.18 %	27.86 %	27.50 %
Net profit Sales Percentage %	10.84 %	10.56 %	11.10 %	11.57 %	11.90 %
BEP in % of installed capacity %	49.90 %	27.12 %	27.12 %	27.12 %	27.12 %
BEP in sales of Rs	2,620,800.00	1,840,695.65	1,972,173.91	2,103,652.17	2,235,130.43
Return On Capital Employed	0.26	0.34	0.34	0.33	0.33

Project Feasibility graph

Net profit Sales %

Quick ratio

Revenue v/s Expense

Expense Splitup

Project Cost

Sl. no	Item	Amount Rs
1	Rent advance	*******
2	Silicon rubber candle moulds	*******
3	Aluminium candle moulds	*******
4	Thermostate	*******
5	Shrink wrap machine	*******
6	manual candle making machine	*******
7	File cabinet	*******
8	Almara	*******
9	CCTV system	*******
10	Office table	*******
11	Chair	*******
12	Printer	*******
13	Desktop computer	*******
14	Electric fixtures	*******
15	miscl. utensils	*******
16	Working Capital	*******
	Total	*******

Working Capital Computation

Sl. no	Item	Amount Rs
1	Consumables / stock in hand	*******
2	Work in progress	*******
3	Finished goods	*******
4	Working expense.	*******
5	Receivables/Sundry debtors	*******
6	Payables	*******
7	Total working capital	*******
8	Own Contribution	*******

Annual Sales / Revenue

Sl. no	Item	Rate		Quantity	Unit	Total Rs
1	Candle	*******	X	48	Ton	*******
	Total					*******

Total Yearly Expense

Sl. no	Item	Amount Rs
1	Rent	*******
2	Supervisor	*******
3	repair	*******
4	electricity bill	*******
5	Office expence	*******
6	carton	*******
7	shrink wrap	*******
8	packing boxes for candles	*******
9	perfumes	*******
10	thread	*******
11	color	*******
12	stearic acid	*******
13	unskilled labour	*******
	Total	*******

Application of Fund

Sl. no	Item	Subsidy %	No.	Rate	Amount Rs
1	Rent advance	*******	1	*******	*******
2	Silicon rubber candle moulds	*******	50	*******	*******
3	Aluminium candle moulds	*******	25	*******	*******
4	Thermostate	*******	5	*******	*******
5	Shrink wrap machine	*******	1	*******	*******
6	manual candle making machine	*******	7	*******	*******
7	File cabinet	*******	1	*******	*******
8	Almara	*******	1	*******	*******
9	CCTV system	*******	1	*******	*******
10	Office table	*******	1	*******	*******
11	Chair	*******	1	*******	*******
12	Printer	*******	1	*******	*******
13	Desktop computer	*******	1	*******	*******
14	Electric fixtures	*******	1	*******	*******
15	miscl. utensils	*******	1	*******	*******
	Total Investment				*******
	Total Subsidy				*******
	Net Investment				*******

Means of Finance

Sl. no	Item	Amount
1	Term Loan	*******
2	Working capital Loan	*******
3	Total loan	*******
4	Term Loan contribution	*******
5	Working capital contribution	*******

Profitability Statement

		Year 1(!*)	Year 2	Year 3	Year 4	Year 5
Revenue from operation
Sales	15.93	*****	*****	*****	*****	*****
Add :
Closing stock		*****	*****	*****	*****	*****
Total		*****	*****	*****	*****	*****
Less :
Opening stock		*****	*****	*****	*****	*****
Stock purchase	7.20	*****	*****	*****	*****	*****
Salary	3.60	*****	*****	*****	*****	*****
Repairs and maintenance charges	0.24	*****	*****	*****	*****	*****
gas	0.12	*****	*****	*****	*****	*****
ELECTRICITY bill	0.12	*****	*****	*****	*****	*****
Total		*****	*****	*****	*****	*****
Gross profit		*****	*****	*****	*****	*****
Less :
Rent	0.12	*****	*****	*****	*****	*****
Telephone/Postal &internet charge	0.12	*****	*****	*****	*****	*****
Total		*****	0*****	*****	*****	*****
Depreciation		*****	*****	*****	*****	*****
Interest on TL		*****	*****	*****	*****	*****
Interest on WC		*****	*****	*****	*****	*****
Total		*****	*****	*****	*****	*****
Profit before tax		*****	*****	*****	*****	*****
Income Tax		*****	*****	*****	*****	*****
Profit after tax		*****	*****	*****	*****	*****

Cash flow statement

Cash Inflow	Pre operative period	Year 1	Year 2	Year 3	Year 4	Year 5
Capital	0.63	*****	*****	*****	*****	*****
Subsidy	*****	*****	*****	*****	*****	*****
Termloan	*****	*****	*****	*****	*****	*****
Profit before tax with interest	*****	*****	*****	*****	*****	*****
Increase in WC loan	*****	*****	*****	*****	*****	*****
Depreciation	*****	*****	*****	*****	*****	*****
Increase in Current liability	*****	*****	*****	*****	*****	*****
Total Cash Inflow	*****	*****	*****	*****	*****	*****
Cash Outflow
Fixed Assets	*****	*****	*****	*****	*****	*****
Increase in Current asset		*****	*****	*****	*****	*****
Interest on TL	*****	*****	*****	*****	*****	*****
Interest on WC	*****	*****	*****	*****	*****	*****
Income Tax	*****	*****	*****	*****	*****	*****
Decrease in Term loan		*****	*****	*****	*****	*****
Drawing	*****	*****	*****	*****	*****	*****
Total Cash Outflow	*****	*****	*****	*****	*****	*****
Opening balance	*****	*****	*****	*****	*****	*****
Net Cashflow	*****	*****	*****	*****	*****	*****
Closing balance	*****	*****	*****	*****	*****	*****

Balance sheet

Liability	Pre operative period	Year 1	Year 2	Year 3	Year 4	Year 5
A. Share holders funds
Capital	*****	*****	*****	*****	*****	*****
Reserve & Surplus	*****	*****	*****	*****	*****	*****
B.Non current Liabilities
Termloan	*****	*****	*****	*****	*****	*****
C.Current Liabilities
Working capital loan	*****	*****	*****	*****	*****	*****
Account payable		*****	*****	*****	*****	*****
Total Liability	*****	*****	*****	*****	*****	*****
Asset
A. Non current Assets
Fixed Assets	*****	*****	*****	*****	*****	*****
B. Current Assets
Inventory	*****	*****	*****	*****	*****	*****
Trade receivables	*****	*****	*****	*****	*****	*****
Cash and cash equivalence	*****	*****	*****	*****	*****	*****
Total Asset	*****	*****	*****	*****	*****	*****

Repayment of Term loan

Year	Installment	Outstanding at the beginning	Principal repayment	Interest	Amount paid	Outstanding at the end
1	1	*****	*****	*****	*****	*****
1	2	*****	*****	*****	*****	*****
1	3	*****	*****	*****	*****	*****
1	4	*****	*****	*****	*****	*****
1	5	*****	*****	*****	*****	*****
\|	\|	\|	\|	\|	\|	\|
\|	\|	\|	\|	\|	\|	\|
5	56	*****	*****	*****	*****	*****
5	57	*****	*****	*****	*****	*****
5	58	*****	*****	*****	*****	*****
5	59	*****	*****	*****	*****	*****
5	60	*****	*****	*****	*****	*****

Debt Service Coverage Ratio

Particulars	Year 1	Year 2	Year 3	Year 4	Year 5
Receipts
a).Net Profit	*****	*****	*****	*****	*****
b).Depreciation	*****	*****	*****	*****	0.30
c).Interest on termloan	*****	*****	*****	*****	*****
Total	*****	*****	*****	*****	*****
Repayments
a).Loan Principal	*****	*****	*****	*****	*****
b).Interest on termloan	*****	*****	*****	*****	*****
Total	*****	*****	*****	*****	*****
DSCR	*****	*****	*****	*****	*****

Depreciation

Particulars	Rate	Year 1	Year 2	Year 3	Year 4	Year 5
Building	*****	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Computers/ Printers /Photocopier/Electronic gadget	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Furniture & fixtures	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Racks & storage/Interior works	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
new item	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
new	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Air-conditioning	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Other investments	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Total less depreciation		*****	*****	*****	*****	*****
Total written down value		*****	*****	*****	*****	*****

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

View a sample report in pdf

Click here to create a project report for your business in less than 10 mins