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Transcript of Air Coolers
PRODUCT PROJECT REPORT ON
AIR COOLERS
PREPARED BY
POOJA VYAS
ACADEMIC YEAR
2005 – 2006
CLASS
T.Y.B.B.A.
ROLL NO.
SEAT NO.
SUBMITTED TO
J.H. BHALODIA WOMENS’ COLLEGE
SAURASHTRA UINVERSITY-RAJKOT
GUIDED BY
PROF.SMITA VYAS DECLARATION
I undersigned Pooja J Vyas, the student of T.Y. B,B.A.
here by declares that this project is my own work & has been
carried out under the supervision of my professor Smita C. Vyas,
The work has not been previously submitted to any
other university for any examination.
Date :- Signature :-
Place :- Pooja J. Vyas
PREFACE
As a management student of the final year of graduation,
practical knowledge about the corporate world is no more a desire
or a voluntary action to be undertaken but a simple bare necessity.
Books don’t suffice the level of knowledge, a student is required to
possess. A student should have a purview about the real
happenings of the corporate structure.
To suffice the above mentioned requirements BBA the
course has expanded its purview and scope to the world of
practical training. Along with the big corporate entities, a student
should have knowledge about all the happenings and functioning
of the small scale industries, in order to be competent managers or
entrepreneurs.
As a student of BBA, one should have sufficient and basic
knowledge regarding how to start a small business, how to
management it, how to make a financial estimates and manage
funds and the most important of all how to make a product project
report on the basis of which they can apply for a loan from bank.
Thus, product project report at this stage makes many things
clear in mind of student which helps lot in future there #fore it
ensures practical exposure in the world of business and
entrepreneurship and inculcates necessary skills which are
indispensable for any venturous entrepreneur.
ACKNOWLEDGEMENT
Successful accomplishment of any work requires co-operation,
help and guidance from many people. I had a wonderful
opportunity to make a product project report on Air Coolers as a
part of my practical training in T.Y. B.B.A.
This report would not have been possible without the help of
many people whom I would like to acknowledge and thank for
their kind co-operation.
First of all I thank J. H. BHALODIA WOMENS’
COLLEGE-RAJKOT for giving me opportunity of doing product
project report.
I would like to thank my respected PRINCIPLE MR. R. M.
FULETRA for giving me such an opportunity to have an insight
into the small scale business work in the form of this product
project report.
I specially thank PROF, SITA VYAS-H. O. D. for giving me
important guidance for making the project informative and well –
constructed. She had spent her precious time for my product
project report. It would be impossible for me to complete this
project without her important instruction and supervision.
I thank ALL MY FRIENDS AND CLASSMATES for giving
me their important guidance, which was very helpful for me to
complete my project in perfect time duration.
I thank ALL HIDDEN PERSONALITIES, who played
important roles to complete my product project report successfully.
At last, but not least, I thank MY PARENTS & MY
FAMILY MEMBERS to give me every kind of support, and
almighty the GOD for helping me out whenever I viewed an
obstacles, as they have left no stone unturned and betterment.
Date :- Signature :-
Place :- Rajkot
INDEX
[1] INTRODUCTION
[2] PROJECT AT GLANCE
[3] MANAGEMENT SET – UP
[4] ABOUT THE PARTENERS
[5] PROPOSED LOCATION JUSTIFICATION
[6] LOCATION
[7] MARKET POTENTIAL
[8] RAW – MATERIALS
[9] NAMES & ADDRESS OF SUPPLIERS
[10] MANUFACTURING PROCESS
[11] BASIS & PRESUMPTION
[12] IMPLIMENTATION SCHEDULE
[13] TOTAL FIXED CAPITAL
- LAND & BUILDING
- MACHINERY & EQUIPMENTS
- PRE – OPERATIVE EXPENTSES
[14] TOTAL WORKING CAPITAL
- PERSONNEL
- RAW MATERIALS
- UTILITIES
- OTHER CONTINGENCIES EXPENSES
[15] TOTAL INVESTMENTS
[16] COST OF PRODUCTION
[17] NET PROFIT PER YEAR
[18] NET PROFIT RATIO
[19] RATE OF RETURN
[20] BREAK EVEN POINT
INTRODUCTION
As a part of practical training, I have selected to prepare a product
project report on Air Coolers. There are mainly two types of coolers ;
(1) Room Coolers.
(2) Desert Coolers.
Evaporative type Air Coolers are used in peak summer season for
cooling of rooms, offices, hotels etc. In general Air Coolers are used for
cooling similar areas and desert coolers are used for larger area. Air Coolers
basically consist of body, fan, water pump and control switch etc.
An electric fan generally of exhaust fan type is mounted inside a
louvered housing and three vertical sides of the housing are fitted with
filtered pads which are kept wet with help of water pump. Rotation of fan
mounted inside the body draws air from all the three sides through wet pads.
Thus, air gets cooled by evaporation of water and which is blown into the
room.
But this benefits are not enough reasons to pursue an entire project in
order to commence such a business, a business person has to check the
financial viability of the project also certain questions to be answered like,
How much capital is more required?
From where this capital will be procured?
What will be the cost of production?
What will break even point be reached?
What would be the profits and return on investments?
And the list is endless …………..!!!!
A genuine attempt has been made to answer all these questions with
almost justification possible in the following pages…….
PROJECT AT GLANCE
NAME OF THE UNIT : GYATRI AIR COOLERS
ADDERSS FOR : “GYATRI AIR COOLERS” PLUS POINT – 09 OPP. HARIBHAI HALL, DR. YAGNIK ROAD, RAJKOT – 360001.
SIZE OF UNIT : SMALL SCALE INDUSTRY
FORM OF ORGANISATION : PARTENERSHIP FIRM
NAME OF PARTENERS : MISS POOJA J. VYAS MR. PRAKASH P. PATHAK
NAME OF THE PRODUCT : AIR COOLERS
SSI REGISTRATION NO. : APPLIED FOR
LOCATION OF THE UNIT : “GYATRI AIR COOLERS” SHAPAR INDUSTRIAL ZONE, GONDAL ROAD, NATIONAL HIGH-WAY, VILLAGE : SHAPAR, DIS. :- RAJKOT.
MANAGEMENT SET – UP
Both the partners of the firm, viz,
Miss Pooja J. Vyas
Mr. Prakash P. Pathak
They will be the working partners of the firm whose capital contribution and profit sharing ration will be as per the partnership deed.
While, Mr. Prakash P. Pathak on the basis of his business experience and expertise will look after the factory work as well as some of the major office work, Miss Pooja J. Vyas will take care of official work.
All stage and policy decisions shall be taken by the consent of all the parties concerned.
ABOUT THE PARTENERS
(1) ABOUT MR. PRAKASH P. PATHAK…
NAME : MR. PRAKASH P. PATHAK
ADDRESS : “SHREEJI NI VAS” 3, SAURASTRA KALA KENDRA, 150 FEET RING ROAD, RAJKOT – 360005.
AGE : 35 YEARS
QUALIFICATION : MASTER IN SCIENCE
EXPERIENCE : 10 YEARS EXPERIENCE IN SIMILAR BUSINESS
RESPONSIBILITY : FACTORY WORK SUPERVISION AND MAJOR OFFICIAL WORK.
(2) ABOUT MISS POOJA J. VYAS…
NAME : MISS POOJA J. PATHAK
ADDRESS : “GYATRI NI VAS” 4, GAYKWADI PLOT, NAGRIK BANK STREET, RAJKOT – 360001.
AGE : 23 YEARS
QUALIFICATION : MASTER IN BUSINESS ADMINISTRATION
EXPERIENCE : FRESH
RESPONSIBILITY : OFFICIAL WORK.
PROPOSED LOCATION JUSTIFICATION
Factory Location is the decision regarding geographical situation of the plant. This decision is a very crucial one because it is not easily alterable and involves a considerably huge amount of investment. The location of the factory plays a very vital role in success of failure of the business. But this decision is affected by many factors, which are to be kept in mind while selecting the location.
The following site has been selected for work premises:-
“GYATRI AIR COOLERS” SHAPAR INDUSTRIAL ZONE, GONDAL ROAD, NATIONAL HIGH-WAY, VILLAGE: SHAPAR, DIS.:- RAJKOT.
The correctness of this decision can be justified on the full basis:
1] INDUSTRY CHOICE:-Many other industries are situated in this locality, and
hence it is a common choice of all the entrepreneurs in this business.
2] NEARNESS TO THE REGISTERED OFFICE:-As the registered office located at Dr. Yagnik Road, the
location of the factory is near to the administrative office and the computer room which is useful in faster communication.
3] MARKET PROXIMITY :-
The location also provides proximity to the market in the sense that direct sales from factory is also possible.
4] TRANSPORTATION COST:-As the materials is loaded from railway boggy and it is
sprightly carried to factory such not transportation cost is incurred and so far as finished goods are to be dispatched, Factory owns a delivery van.
5] RAPID SALES:-As the factory location is nearer to industrial area of
shaper as well as registered office locations are situated in the heart of the city, sales are bound to increase at unimaginable rates.
LOCATIONS
REFISTERED OFFICE :-
“GYATRI AIR COOLERS” PLUS POINT – 09 OPP. HARIBHAI HALL, DR. YAGNIK ROAD, RAJKOT – 360001.
FACTORY OFFICE :-
“GYATRI AIR COOLERS” NR. K. K. CHEMICALS, SHAPER.
MARKET POTENTIAL
As the construction of residential accommodation, office complex and the standard of living is increasing day by day, demand for this item is also increasing specially in the sections of society who are not able to afford air conditioned. It is understood that during the period of last 10 years there is a rise in demand for the item @ 60 % p.a. and this trend is likely to continued.
RAW MATERIALS
The main raw materials required for manufacturing Air Cooler are as
follows:
[1] GI Sheet
[2] Cooler Motor
[3] Pump Vertical
[4] Wire Net
[5] Filter Pad
[6] Switches
[7] Cable ( 3 core )
[8] Hardware Items
[9] Consumable Stores
NAMES AND ADDRESSES OF SUPLIERS
[1] M/S. Amar Sons,57, Rani Jhansi Road,New Delhi.
[2] M/S. Prem Engineering Works,Okhala Industrial Estate,New Delhi.
[3] M/S. K. G. Khosla & Co.1, Deshbandhu Gupta Road,New Delhi.
[4] M/S. Jaymes Engg. Co. Pvt. Ltd.M-block,Connaught Place,New Delhi.
[5] M/S. Toshniwal Brothers Pvt. Ltd.3E/8, Jhandewalan Wxtension, New Delhi.
[6] M/S. Philips India Ltd.,68, Najafgarh Road,New Delhi.
[7] M/S. Balak Ram Banarasi Das & Sons,37/19, The Mall,Kanpur – 208001.
[8] M/S. Bazari Trading Co.,129, Moti Street,
Fort,Bombay – 400001
[9] M/S. Maruti Electricals,123/286 A, Gaddarian Purwa,Fazalganj, Kanpur.
MANUFACTRING PROCESS
[1] GI sheets are purchased from the local market and cut to size, louvers
made and bent for making the vertical sides, top cover and water pump.
Filter pads are fitted in the 3 vertical sides and electric fan fan and vertical
pump are mounted. On the grill is fixed through which cooled air is brown
out. Switches are provided in the front panel, vertical sides, top cover are
assembled together with screws/ nut and both assembled cooler is then
painted.
[2] Assembled cooler is tested as per the requirement of ISO : 2000. The
basic requirement of the tests are as follows :
(a) INSULATION RESISTANCE TEST :-
The insulation resistance between all electrical circuits when
measures at normal room temperature with megger of 500 V DC
should be not less then 1 Mega Ohm.
(b) HIGH VOLTAGE TEST :-
The electrical insulation all electric circuits shall be able to
withstand high voltage tests of 1000 V rms for single phase motors
applied for not less then 2 seconds.
(c) PRODUCTION EFFICIENTCY TEST :-
Cooling efficiency and air delivery for various capacities of air
coolers shall bee within the limits prescribed in relevant ISS.
[3] Production Capacity:-
(a) Quantity 2500 nos. Air Coolers p.a.
(b) Value Rs. 1,00,00,000
[4] Approximative Motive Power Requirement:-
5KW
[5] Pollution Control Requirement:-
No Pollution control certificate is required for registration of
the units for manufacture of this item.
[6] Energy Conservation Need:-
The design of the fan and electric pump should ensure
minimum iron losses and the cooler should be able to withstand
cooling efficient and air delivery tests as per ISO: 2000
BASIS AND PRESUMPTION
1. The basis for calculation of production capacity is on single
shift basis, working of 25 days per month on 75% efficiency. Time
required for achieving envisaged capacity utilisation is assumed as
one year.
2. BEP for the scheme has been calculated on full capacity
utilisation.
3. Rate of interest has been taken as 18% on an average. This
how ever, is likely to vary depending upon the financial outlay and the
location of unit.
4. Labour wages have been taken on the basis of minimum
applicable. These are likely to change depending upon the location of
the unit.
5. Rental Charges of Rs. 100/- per sq. mtr. P.m. has been taken
on an average. This figure is likely to vary depending upon the
location of the unit.
6. Margin money requirement differs from project to project to
project and type of entrepreneurs such women, SC/ST, physically
handicapped etc. and the minimum margin money usually asked for
by the financial institutions and banks is 15%. Margin money upto
25% in some cases is also asked for. The entrepreneur may check up
the margin money requirement form financial institutions for the
project.
7. Terms of loan differ from one financial institution to another
and in generals minimum gestation period is normally 6 months and it
could be 2 years. Maximum period for repayment of loan is 7 years
including gestation period. The exact terms and conditions may be
found by the entrepreneurs from the concerned financial institutions.
8. The costs of machinery and equipment as indicated in the
scheme are approximate to those ruling at the time of preparation of
the scheme. The entrepreneur may check up the exact price for
specific make and model of the machine selected.
9. Non-refundable deposits, cost of preparation of project
report etc. may be considered under pre-operative expenses.
10. The provisions made in other respects viz; raw materials,
utilities, overheads etc. Are drawn on the basis of standard variations
and output. The costs indicated against each are approximate based
on local market conditions and observation. The entrepreneur may
find out the exact cost from the concerned sources.
11. The operative period of this project is estimated to be about
10 years considering technology obsolescence.
IMPLEMENTAION SCHEDULE
The period required from the time of provisional registration with the
concerned District Industries Centre to commercial production is 6 months
to 2 years. This includes clearance from concerned agencies including
financial institutions etc.
LAND & BUILDING
PARTICULARS AMOUNT
Land & Building 30,00,000
Construction 45,00,000
75,00,000
MACHINERY & EQUIPMENTS
PARTICULARS AMOUNT
1. Guillotine Shearing Machines 7,50,000
2. Power Press 20 tones capacity 9,00,000
3. Screw type break press 4,50,000
4. Air compressor Complete with motor spray 3,00,000
5. Gas welding set 3,00,000
6. Porteble Electric Drill 90,000
7. Portable flexible shaft grinder 90,000
8. Double ended grinder 1,20,000
9. Mergger 3,00,000
10.High voltage test set 3 KV 1,65,000
11. Control panel for measuring power input 1,80,000 consisting of ammeter, voltmeter, wattmeter etc.
12. Multimeter 60,000
13. Air flow & temp. Measuring apparatus 1,50,000
14. Anemometer 1,50,000 40,05,000
PRE – OPERATIVE EXPENSES
PERTICULARS AMOUNT
Fees for preparation of project report, 1,00,000Deposit to electricity boarded etc.
TOTAL PRE – OPERATIVE EXPENSES 1,00,000
TOTAL FIXED CAPITAL
PARTICULARS AMOUNT
Land & Building 75,00,000
Machinery & equipments 40,50,000
Pre – operative expenses 1,00,000
TOAL FIXED COST 80,00,500
PERSONNEL
DESIGNATION NO. SALARY TOTAL
Works Manager 1 15,000 15,000
Accountant 1 10,000 10,000
Skilled fitter 3 2,500 7,500
Unsilled fitter 5 1500 7,500
Store keeper 2 1500 3000
Peon-cum-Watch man 3 1000 3000
Mechanic 3 5000 3000
Skilled fitter 2 5000 10000
56,000
Perquisites @ 20 % salaries 11,200
TOAL PERSONNEL 67,200
RAW MATERIALS
PARTICULARS QTY RATE AMOUNT
GI sheet 3 tons 20,000 60,000
Cooler Motor
100 800 80,000
Pump Vertical 100 200 20,000
Wire Net L.S. - 17,000
Filter Pad 200 kg 16/kg 3,200
Switches 200 kg 10/kg 2,000
Cable(3 core) 250 mtr 10/mtr 2,500
Hardware Items L.S. 500
Consumable Stores L.S. 3,000
1,88,200
UTILITIES
PARTICULARS AMOUNT
Power (6000 UNITS) 75,000
Water @ Rs. 20 /- per kg 25,000
TOTAL UTILITIES 1,00,000
OTHER CONTINGENT EXPENSES
PARTICULARS AMOUNT
Postage & stationary 10,000
Telephone 15,000
Consumable stores 12,000
Repairs and Maintenance 4,500
Transport charges 5,000
Advertising and publicity 2,000
Miscellaneous expenses 4,500
TOAL CONTINGENCIS EXPENSE 43,000
TOTAL WORKING CAPITAL
PARTICULARS AMOUNT
Personnel 67,000
Raw Materials 1,88,200
Utilities 1,00,000
Other Contingencies Expenses 43,000
TOTAL RECURRING EXPENSES 3,58,400
TOTAL WORKING CAPITAL :-
= 3,58,400 * 3
=10,75,200 /-
TOTAL INVESTMENTS
FIXED CAPITAL 80,00,500
WORKING CAPITAL 10,75,200
TOTAL CAPITAL INVESTMENT 90,75,700
COST OF PRODUCTION
PARTICULARS AMOUNT
Total recurring cost pre unit 43,00,800
Depreciation on building @ 10 % 7,50,000
Depreciation on machinery and equipment @ 15 % 60,075
Interest on total capital investment @ 23 % 17,49,265
TOTAL COST OF PRODUCTION 68,60,140
TURNOVER
PARTICULARS QTY. RATE AMOUNT
Desert Coolers Of 2,000 5,000 1,00,00,000Assorted Capacity
NET PROFIT PER YEAR :-
= Turnover – cost of production
= 1,00,00,000 – 68,60,140
= 31,39,860
NET PROFIT RATIO :-
= Net Profit Per Year x 100
Turnover Per Year
= 31,39,860 x 100 ------------------------ 1,00,00,000
= 31.40 %
NET PROFIT PER YEAR = Rs.31,39,860 /-
NET PROFIT RATIO - 31.40 %
RATE OF RETURN :-
= Net Profit Per Year x 100 Total Investments
= 31,39,860 x 100 90,75,700
= 34.60%
RATE OF RETURN – 34.60%
BREAK EVEN POINT
FIXED COST :-
[a] Depreciation on Building 7,50,000[b] Depreciation on Machinery 60,075[c] Interest on Total Investments 17,49,265[d] 40 % Salary on Wages 3,22,560[e] 40 % Other Contingency Expenses 2,06,400
TOTAL FIXED COST 30,88,300
NET PROFIT PER YEAR :-
B.E.P. = Total Fixed Cost x 100 Total Fixed Cost + profit
= 30,88,300 x 100 . 30,88,300 + 31,39,860
= 30,88,30,000 62,28,160
= 49.58 %
BREAK EVEN POINT - 49.58 %