1. RTC Project Appraisal Wax Mould Sony 1 st Sem – 2006-07

2. Objective To generate livelihood for one rural poor family through wax mould making with an investment of Rs. 7,750/- that will result in a steady monthly income of Rs. 2138/- To generate livelihood for one rural poor family through wax mould making with an investment of Rs. 7,750/- that will result in a steady monthly income of Rs. 2138/-

3. MoP & Target Number of rural beneficiaries = 1 Number of rural beneficiaries = 1 Investment = Rs. 7,750/- Investment = Rs. 7,750/- Monthly income = Rs. 2138/- Monthly income = Rs. 2138/-

4. Scope BITS Models made out of wax to be distributed to the leaving BITSIANS during their farewell BITS Models made out of wax to be distributed to the leaving BITSIANS during their farewell

5. Responsibility Sony Sony Shantan Shantan Raghu Raghu Family in Bhaas Family in Bhaas

6. Why This Project? An appreciable recurrent market potential within Pilani campus An appreciable recurrent market potential within Pilani campus Does not require major infrastructure & technology Does not require major infrastructure & technology Revenue that can provide livelihood for one family Revenue that can provide livelihood for one family Reflects the commitment of BITSIANS in the welfare of rural India Reflects the commitment of BITSIANS in the welfare of rural India Does not compete with Amla Birla Kendra Does not compete with Amla Birla Kendra

7. Market Potential 1000 models per year in BITS Pilani 1000 models per year in BITS Pilani Has potential to include other campuses Has potential to include other campuses Has an additional market potential of BITSAA Has an additional market potential of BITSAA Scope to generate additional markets by developing newer models Scope to generate additional markets by developing newer models Only the market in BITS, Pilani is considered for this proposal Only the market in BITS, Pilani is considered for this proposal Rest of the markets will be addressed in the next phase Rest of the markets will be addressed in the next phase

8. Price The product being a novelty item a standard price of Rs.75/- is fixed The product being a novelty item a standard price of Rs.75/- is fixed Providing livelihood to the rural poor is the prime consideration for fixing this price Providing livelihood to the rural poor is the prime consideration for fixing this price Affordability is given due consideration in fixing this price Affordability is given due consideration in fixing this price

9. Process Wax is melted through heating Wax is melted through heating Mould surface is coated with paraffin oil for easy removal of wax impression Mould surface is coated with paraffin oil for easy removal of wax impression The stand is fixed to the mould The stand is fixed to the mould Mould is preheated for easy flow of wax Mould is preheated for easy flow of wax Wax is poured into the mould Wax is poured into the mould It is kept in water for easy solidification It is kept in water for easy solidification Once the wax solidifies it is pulled out Once the wax solidifies it is pulled out Extra wax is trimmed Extra wax is trimmed

10. Know-How Amla Birla Kendra has facility, technology and expertise Amla Birla Kendra has facility, technology and expertise They are willing to train us They are willing to train us Training will be for a maximum of 3 days Training will be for a maximum of 3 days The cost of training is Rs.150/- per day The cost of training is Rs.150/- per day Raw materials for training purpose will be provided by ABK Raw materials for training purpose will be provided by ABK It is proposed to take their help in this project to shorten the learning curve and diminish related expenses It is proposed to take their help in this project to shorten the learning curve and diminish related expenses

11. Capacity 1000 pieces per year – 83 pieces per month 1000 pieces per year – 83 pieces per month

12. Infrastructure Building space – 250 Sq. Ft Building space – 250 Sq. Ft One gas stove One gas stove Die Die Melting vessel Melting vessel Kettle Kettle Two buckets to cool Two buckets to cool Scrapper to de-burr Scrapper to de-burr

13. Raw Materials Raw materials required: Wax, paraffin oil, color, perfume, wooden stand Wax, paraffin oil, color, perfume, wooden stand Quantity required / month: Wax – 31 kg Wax – 31 kg Paraffin oil – 1 kg Paraffin oil – 1 kg Color & Perfume – As required Color & Perfume – As required Wooden stand – one per mould Wooden stand – one per mouldSource: Mishra Wax Works, Delhi Mishra Wax Works, Delhi

14. Consumables Cooking gas (LPG) – 1 cylinder / 6 months Cooking gas (LPG) – 1 cylinder / 6 months No appreciable requirement of water No appreciable requirement of water No electric power required No electric power required

15. Manpower 4 labor hours per day 4 labor hours per day

16. Quality Control DefectCauseControl Finish / shape Die quality Supplier control Stability Stand quality Supplier control Print quality Wax quality Visual inspection Cracks Improper storage Packaging Poor color appearance Process of mixing Measure control

17. Safety & Environment Spillage of hot wax – Care in handling Spillage of hot wax – Care in handling No waste or by-product No waste or by-product No disposal issues No disposal issues

18. Logistics Handling – No special equipments Handling – No special equipments Packing – Wrapped with polythene sheet and packed in cartons Packing – Wrapped with polythene sheet and packed in cartons Preservation – No special preservation Preservation – No special preservation Storage – No special requirements Storage – No special requirements Delivery – Hand delivered Delivery – Hand delivered

19. Capital Required Item Cost (Rs.) Gas stove 350/- Gas connection deposit 1000/- Die1500/- Vessels600/- Other accessories 200/- Training cost 450/- Working capital (2 months) 4100/- Total7750/-

20. Variable Cost HeadQuantity Rate (Rs.) Cost (Rs.) Wax 0.37 kg 56/kg20.70 Paraffin oil 0.012 kg 100/kg1.20 Color & perfume --900/liter0.55 Gas--350/cyl.0.90 Wooden stand 1 piece 10/-10.00 Labor cost 1 person 80/- /day 10.00 Packaging--3.00 Incidental expenses --3.00 Total49.35

21. Revenue Head Amount (Rs.) Selling price 75.00 Variable cost 49.35 Revenue25.65 Revenue in % 34%

22. Recovery Plan Header Amount (Rs) Funding provided 7,750/- EMI for 12 months 646/- Revenue / month 2,128/- % Recovery 30%

23. Project Appraisal Heading Amount in Rs Investment7,750/- Sale turnover 60,000/- Profit2,128/- Breakeven 4 months ProposalApproved

24. Thank You