Published on June 25, 2016
1. www.entrepreneurindia.co MDF, Medium Density Fiberboard (Interior-use Engineered Wood Panel Product, Manufactured from Wood Fibres) Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics, Production Schedule, Working Capital Requirement, Plant Layout, Process Flow Sheet, Cost of Project, Projected Balance Sheets, Profitability Ratios, Break Even Analysis
2. www.entrepreneurindia.co Introduction Medium-density fibreboard (MDF) is an engineered wood product made by breaking down hardwood or softwood residuals into wood fibres, often in a defibrator, combining it with wax and a resin binder, and forming panels by applying high temperature and pressure.
3. www.entrepreneurindia.co Medium density fibreboard is made basically the same way as particle board which is by gluing the fibres together with a resin and then compressing the board under heat, later the board is cut into appropriate lengths after it has dried.
4. www.entrepreneurindia.co Advantages: It iscost effective It's availablein many sizes Has no naturaldefects Canbe easilymachined
5. www.entrepreneurindia.co MDF is reconstituted into wood sheets in a variety of widths and lengths. Bonding is achieved by the addition of synthetic resin adhesives, which are cured under heat and pressure. Paraffin wax is added to assist with water repellency, while other chemicals can be added during manufacturing for more specific protection.
6. www.entrepreneurindia.co Application Medium Density Fiberboard (MDF) is widely used in the manufacturing of furniture, kitchen cabinets, door parts, mouldings, millwork and laminate flooring.
7. www.entrepreneurindia.co Common Uses: Doors, Jambs & Millwork Laminate Flooring Laminating & Finishing Moulding Office & Residential Furniture Kitchen Cabinets
8. www.entrepreneurindia.co MDF Production The MDF production process involves grinding wood chips into fibres and binding them with synthetic resin under heat and pressure. MDF is used mainly for the furniture industry, skirting boards, architraves, packaging material, in the door industry and in everything from book covers to shoes.
9. www.entrepreneurindia.co The MDF production line mainly includes chipping, screening, refining, glue preparation, drying, mat forming, pre-pressing, loading & unloading, hot pressing, edge trimming & sanding. The process starts from the wood yard, designed to ensure continuous & un- interrupted supply of woods.
10. Market Potential www.entrepreneurindia.co MDF markets are now more mature, and price competitive, which has driven producers to improve quality and develop new products and markets. There has been significant change in ownership structure during the world economic downturn, and further changes can be expected.
11. Producers, suppliers and traders will need to understand these changes to take advantage of the opportunities this presents for production, investment and trade, as the global economy recovers. High demand for medium density fibreboard (MDF) in the world market has led MDF manufacturers to increase their production capacity. This has resulted in an increased requirement for raw materials to fulfill the market demand. www.entrepreneurindia.co
12. Project at a Glance www.entrepreneurindia.co COST OF PROJECT MEANS OF FINANCE Particulars Existing Proposed Total Particulars Existing Proposed Total Land & Site Development Exp. 0.00 450.00 450.00Capital 0.00 968.33 968.33 Buildings 0.00 689.50 689.50Share Premium 0.00 0.00 0.00 Plant & Machineries 0.00 2034.37 2034.37Other Type Share Capital 0.00 0.00 0.00 Motor Vehicles 0.00 25.00 25.00Reserves & Surplus 0.00 0.00 0.00 Office Automation Equipments 0.00 144.50 144.50Cash Subsidy 0.00 0.00 0.00 Technical Knowhow Fees & Exp. 0.00 75.00 75.00Internal Cash Accruals 0.00 0.00 0.00 Franchise & Other Deposits 0.00 0.00 0.00 Long/Medium Term Borrowings 0.00 2904.99 2904.99 Preliminary& Pre-operative Exp 0.00 8.00 8.00Debentures / Bonds 0.00 0.00 0.00 Provision for Contingencies 0.00 200.00 200.00Unsecured Loans/Deposits 0.00 0.00 0.00 Margin Money - Working Capital 0.00 246.95 246.95 TOTAL 0.00 3873.32 3873.32TOTAL 0.00 3873.32 3873.32
13. Project at a Glance Year Annualised Book Value Debt Dividend Retained Earnings Payout Probable Market Price P/E Ratio Yield Price/ Book Value EPS CEPS Per Share Per Share Per Share No.of Times ` ` ` ` ` % ` % ` % 1-2 5.89 10.27 15.89 24.00 0.00 100.00 5.89 0.00 5.89 1.00 0.00 2-3 8.46 12.25 24.35 18.00 0.00 100.00 8.46 0.00 8.46 1.00 0.00 3-4 11.07 14.34 35.41 12.00 0.00 100.00 11.07 0.00 11.07 1.00 0.00 4-5 13.65 16.47 49.06 6.00 0.00 100.00 13.65 0.00 13.65 1.00 0.00 5-6 16.18 18.62 65.24 0.00 0.00 100.00 16.18 0.00 16.18 1.00 0.00 www.entrepreneurindia.co
14. Project at a Glance Year D. S. C. R. Debt / - Deposits Debt Equity as- Equity Total Net Worth Return on Net Worth Profitability Ratio Assets Turnover Ratio Current Ratio Individu al Cumulativ e Overall GPM PBT PAT Net Contrib ution P/V Ratio (Number of times) (Number of times) % % % % % % Initial 3.00 3.00 1-2 1.46 1.46 1.51 1.51 2.40 12.10% 7.17% 5.28% 2766.98 25.62% 2.09 1.04 2-3 1.73 1.59 0.74 0.74 1.41 13.61% 9.68% 6.50% 3129.92 24.84% 2.24 1.32 3-4 2.06 1.73 2.06 0.34 0.34 0.87 14.64% 11.48% 7.44% 3574.71 24.82% 2.27 1.62 4-5 2.46 1.89 0.12 0.12 0.55 15.35% 12.79% 8.16% 4019.50 24.81% 2.21 1.96 5-6 2.96 2.06 0.00 0.00 0.36 15.84% 13.75% 8.70% 4464.29 24.80% 2.11 2.91 www.entrepreneurindia.co
15. Project at a Glance BEP BEP - Maximum Utilisation Year 5 Cash BEP (% of Installed Capacity) 38.87% Total BEP (% of Installed Capacity) 44.18% IRR, PAYBACK and FACR Internal Rate of Return .. ( In %age ) 28.35% Payback Period of the Project is ( In Years ) 2 Years 3 Months Fixed Assets Coverage Ratio ( No. of times ) 8.633 www.entrepreneurindia.co
16. Major Queries/Questions Answered in the Report? www.entrepreneurindia.co 1. What is Medium Density Fiberboard (MDF) industry? 2. How has the Medium Density Fiberboard (MDF) industry performed so far and how will it perform in the coming years? 3. What is the Project Feasibility of a Medium Density Fiberboard (MDF) Plant? 4. What are the requirements of Working Capital for setting up an Medium Density Fiberboard (MDF) plant?
17. 5. What is the structure of the Medium Density Fiberboard (MDF) industry and who are the key/major players? 6. What is the total project cost for setting up a Medium Density Fiberboard (MDF) plant? 7. What are the operating costs for setting up a Medium Density Fiberboard (MDF) plant? 8. What are the machinery and equipment requirements for setting up a Medium Density Fiberboard (MDF) Business? www.entrepreneurindia.co
18. www.entrepreneurindia.co 9. Who are the Suppliers and Manufacturers of Plant & Machinery for setting up a Medium Density Fiberboard (MDF) Business? 10. What are the requirements of raw material for setting up a Medium Density Fiberboard (MDF) Industry? 11. Who are the Suppliers and Manufacturers of Raw materials for setting up a Medium Density Fiberboard (MDF) Business? 12. What is the Manufacturing Process and Formulations of a Medium Density Fiberboard (MDF) plant?
19. www.entrepreneurindia.co 13. What is the total size of land required for setting up a Medium Density Fiberboard (MDF) plant? 14. What will be the income and expenditures for a Medium Density Fiberboard (MDF) plant? 15. What are the Projected Balance Sheets of a Medium Density Fiberboard (MDF) plant? 16. What are the requirement of utilities and overheads for setting up a Medium Density Fiberboard (MDF) plant? 17. What is the Built up Area Requirement and cost for setting up a Medium Density Fiberboard (MDF) plant?
20. 18. What are the Personnel (Manpower) Requirements for setting up a Medium Density Fiberboard (MDF) Industry? 19. What are Statistics of Import & Export for Medium Density Fiberboard (MDF) ? 20. What is the time required to break-even? 21. What is the Break-Even Analysis of a Medium Density Fiberboard (MDF) plant? 22. What are the Project financials of a Medium Density Fiberboard (MDF) plant? www.entrepreneurindia.co
21. 23. What are the Profitability Ratios of a Medium Density Fiberboard (MDF) plant? 24. What is the Sensitivity Analysis-Price/Volume of a Medium Density Fiberboard (MDF) plant? 25. What are the Projected Pay-Back Period and IRR of a Medium Density Fiberboard (MDF) plant? 26. What is the Process Flow Sheet Diagram of a Medium Density Fiberboard (MDF) project? 27. What are the Market Opportunities for setting up a Medium Density Fiberboard (MDF) project? www.entrepreneurindia.co
22. 28. What is the Market Study and Assessment for setting up a Medium Density Fiberboard (MDF) project? 29. What is the Plant Layout for setting up a Medium Density Fiberboard (MDF) plant? www.entrepreneurindia.co
23. Table of Contents of the Project Report www.entrepreneurindia.co
24. www.entrepreneurindia.co 1. District Profile & Geotechnical Site Characterization 1.1. General 1.2. Physical Characteristics 1.3. Climate 1.4. Transportation And Communications 1.5. Map 1.6. Economy 1.7. Culture & Attitudes 2. Introduction
25. www.entrepreneurindia.co 3. Advantages Of Mdf 3.1. Ecological Safety 3.2. Possible Form Alteration 3.3. Durability 3.4. Manufacturability 4. Physical Mechanical Characteristics 5. Properties 5.1. Mdf Characteristics: 5.2. Product Standards And Certification
26. www.entrepreneurindia.co 6. Uses & Applications 7. Market Survey 7.1. Boards And Plywood 7.2. Particle Boards 7.3. Market Structure 7.4. Leading Brands 8. Swot Analysis 8.1. Strengths: 8.2. Weakness: 8.3. Opportunity: 8.4. Threat:
27. www.entrepreneurindia.co 9. Financials & Comparison Of Major Indian Players/Companies 9.1. About Financial Statements Of Cmie Database 9.2. Profits & Appropriations 9.3. Total Liabilities 9.4. Total Assets 9.5. Net Cash Flow From Operating Activities 9.6. Section – I 9.6.1. Name Of Company With Contact Details 9.6.2. Name Of Director(s) 9.6.3. Plant Capacity 9.6.4. Location Of Plant
28. www.entrepreneurindia.co 9.6.5. Capital Expenditure Projects 9.6.6. Name of Raw Material(S) Consumed With Quantity & Cost 9.7. SECTION – II 9.7.1. Income & Expenses 9.7.2. Profits 9.7.3. Forex Transaction 9.7.4. Liabilities 9.7.5. Assets 9.7.6. Growth in Assets & Liabilities 9.7.7. Growth in Income & Expenditure 9.7.8. Liquidity Ratios 9.7.9. Profitability Ratio 9.7.10. Return Ratios 9.7.11. Cost as % ge of sales
29. www.entrepreneurindia.co 9.7.12. Working Capital & Turnover Ratios 9.7.13. Structure Of Assets & Liabilities(%) 9.7.14. Cash Flow 10. Raw Material 10.1. Raw Materials And Composition 11. Wood Base Mdf Production Line Equipments & Raw Materials 11.1. Required Machinery Section 11.2. Required Raw Materials 12. Manufacturing Process
30. www.entrepreneurindia.co 13. Flow Sheet Diagram 14. Environmental Concern 14.1. List Of Pollution Control Equipment At Various Manufacturing Stages: 15. Suppliers Of Plant & Machinery 16. Suppliers Of Raw Materials 17. Plant Layout
31. www.entrepreneurindia.co 18. Product & Machinery Photographs 19. Quotation Of Plant, Machinery And Equipments From Supplier
32. PROJECT FINANCIALS • Project at A Glance Annexure • Assumptions for Profitability workings …………………………..1 • Plant Economics……………………………………………………….2 • Production Schedule…………………………………………………3 • Land & Building………………………………………………………..4 Factory Land & Building Site Development Expenses • Plant & Machinery……………………………………………..……..5 Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.) www.entrepreneurindia.co
33. • Other Fixed Assets………………………………………….............6 Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies • Working Capital Requirement Per Month………………………. 7 Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store • Overheads Required Per Month And Per Annum………………8 Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses www.entrepreneurindia.co
34. • Salary and Wages ……………………………………………………9 • Turnover Per Annum ……………………………………………..…10 • Share Capital…………………………………………………………11 Equity Capital Preference Share Capital www.entrepreneurindia.co
35. • Annexure 1 :: Cost of Project and Means of Finance • Annexure 2 :: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals www.entrepreneurindia.co
36. www.entrepreneurindia.co • Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process • Annexure 4 :: Sources and Disposition of Funds
37. • Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets) • Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio www.entrepreneurindia.co
38. • Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P www.entrepreneurindia.co
39. • Annexure 8 to 11 :: Sensitivity Analysis- Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP www.entrepreneurindia.co
40. • Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital • Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items www.entrepreneurindia.co
41. • Annexure 14 :: Product wise domestic Sales Realisation • Annexure 15 :: Total Raw Material Cost • Annexure 16 :: Raw Material Cost per unit • Annexure 17 :: Total Lab & ETP Chemical Cost • Annexure 18 :: Consumables, Store etc., • Annexure 19 :: Packing Material Cost • Annexure 20 :: Packing Material Cost Per Unit www.entrepreneurindia.co
42. • Annexure 21 :: Employees Expenses • Annexure 22 :: Fuel Expenses • Annexure 23 :: Power/Electricity Expenses • Annexure 24 :: Royalty & Other Charges • Annexure 25 :: Repairs & Maintenance Exp. • Annexure 26 :: Other Mfg. Expenses • Annexure 27 :: Administration Expenses • Annexure 28 :: Selling Expenses www.entrepreneurindia.co
43. • Annexure 29 :: Depreciation Charges – as per Books (Total) • Annexure 30 :: Depreciation Charges – as per Books (P & M) • Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total) • Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M) • Annexure 33 :: Interest and Repayment - Term Loans • Annexure 34 :: Tax on Profits • Annexure 35 :: Projected Pay-Back Period And IRR www.entrepreneurindia.co
44. Niir Project Consultancy Services (NPCS) can provide Detailed Project Report on Medium Density Fiberboard (MDF) See more http://goo.gl/7tLz29 http://goo.gl/x7JESU http://goo.gl/UI3GVL www.entrepreneurindia.co
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50. o Project Identification o Detailed Project Reports/Pre-feasibility Reports o Market Research Reports o Technology Books and Directory o Databases on CD-ROM o Laboratory Testing Services o Turnkey Project Consultancy/Solutions o Entrepreneur India (An Industrial Monthly Journal) www.entrepreneurindia.co What do we offer?
51. o We have two decades long experience in project consultancy and market research field o We empower our customers with the prerequisite know-how to take sound business decisions o We help catalyze business growth by providing distinctive and profound market analysis o We serve a wide array of customers , from individual entrepreneurs to Corporations and Foreign Investors o We use authentic & reliable sources to ensure business precision www.entrepreneurindia.co How are we different ?
52. Our Approach www.entrepreneurindia.co Requirement collection Thorough analysis of the project Economic feasibility study of the Project Market potential survey/research Report Compilation
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54. Sectors We Cover o Ayurvedic And Herbal Medicines, Herbal Cosmetics o Alcoholic And Non Alcoholic Beverages, Drinks o Adhesives, Industrial Adhesive, Sealants, Glues, Gum & Resin o Activated Carbon & Activated Charcoal o Aluminium And Aluminium Extrusion Profiles & Sections, o Bio-fertilizers And Biotechnology o Breakfast Snacks And Cereal Food o Bicycle Tyres & Tubes, Bicycle Parts, Bicycle Assembling www.entrepreneurindia.co
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57. Sectors We Cover Cont… o Fruits & Vegetables Processing o Ferro Alloys Based Projects o Fertilizers & Biofertilizers o Ginger & Ginger Based Projects o Herbs And Medicinal Cultivation And Jatropha (Biofuel) o Hotel & Hospitability Projects o Hospital Based Projects o Herbal Based Projects o Inks, Stationery And Export Industries www.entrepreneurindia.co
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60. Sectors We Cover Cont… o Potato And Potato Based Projects o Printing And Packaging o Real Estate, Leisure And Hospitality o Rubber And Rubber Products o Soaps And Detergents o Stationary Products o Spices And Snacks Food o Steel & Steel Products o Textile Auxiliary And Chemicals www.entrepreneurindia.co
61. Sectors We Cover Cont… o Township & Residential Complex o Textiles And Readymade Garments o Waste Management & Recycling o Wood & Wood Products o Water Industry(Packaged Drinking Water & Mineral Water) o Wire & Cable www.entrepreneurindia.co
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