Medium density fiberboard (MDF) is a generic term for a panel primarily composed of lignocellulosic fibers combined with a synthetic resin or other suitable bonding system and bonded together under heat and pressure. MDF is a wood based composite. The primary constituent is a softwood that has been broken down into wood fibres; that is the very cells (tracheids, vessels, fibres and fibre-tracheids), which are far smaller entities than those used in particleboard. The panels are compressed to a density of 0.50 to 0.80 and specific gravity (31-50 lb/ft³). Additives may be introduced during manufacturing to improve certain properties.

 Application

 

Medium Density Fiberboard (MDF) is widely used in the manufacturing of furniture, kitchen cabinets, door parts, mouldings, millwork and laminate flooring.

 

Common Uses:

·         Doors, Jambs & Millwork

·         Laminate Flooring

·         Laminating & Finishing

·         Moulding

·         Office & Residential Furniture

·         Kitchen Cabinets

Production Procedure

In the production procedure of MDF board following few steps are involved:

 

·         Chipping of wood

·         Defibrating, gluing and drying

·         Mat forming and processing

·         Cooling, sanding & trimming

·         Grading & storage

·         Impregnation

·         Lamination

 

Market Potential

The global potential demand for panel boards is estimated at 250 million m³ per year and the potential market for MDF alone is 100 million m³. The gap of 150 million m³ can be diverted to particleboard, plywood & OSB. Bulk of the industrial round wood in India is utilized by the saw milling industry, consisting of more than 23,000 units. The projected demand for MDF is 6,70,000 tons, whereas the combined capacity of 2 Plants operating in India (Delhi & Calcutta) is only 1,17,000 cubic meters (88,000 tons). Some shortage is covered by MDF imports of around 3,00,000 tons.

 

Table of Contents

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

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

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:

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

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

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

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

18.   Product & Machinery Photographs

19.   Quotation of Plant, Machinery and Equipments from Supplier

 

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.)

·         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

·         Salary and Wages ……………………………………………………………………………................. 9

·         Turnover Per Annum ………………………………………………………………………................ 10

·         Share Capital…………………………………………………………………………………................ 11

§  Equity Capital

§  Preference Share Capital

 

•        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

 

•        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

•        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

 

•        Annexure 7            ::        Break-Even Analysis

§  Variable Cost & Expenses

§  Semi-Variable/Semi-Fixed Expenses

§  Profit Volume Ratio (PVR)

§  Fixed Expenses / Cost 

§  B.E.P

 

•        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

 

•        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   

 

•        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

•        Annexure 21          ::        Employees Expenses

•        Annexure 22          ::        Fuel Expenses

•        Annexure 23          ::        Power/Electricity Expenses

•        Annexure 24          ::        Royalty & Other Charges

•        Annexure 25          ::        Repairs & Maintenance Expenses

•        Annexure 26          ::        Other Manufacturing Expenses

•        Annexure 27          ::        Administration Expenses

•        Annexure 28          ::        Selling Expenses

•        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