Aluminium Vessels and utensils - Guntur districtguntur.nic.in/statistics/engineering.pdf ·...

1

ALUMINIUM VESSELS AND UTENSILS A. INTRODUCTION

Aluminium Vessels are widely used by common population in India. With the growth of

population in the country the usage of Aluminium vessels is increasing. Aluminium is a

versatile metal, it has properties of high strength light weight, and it is fast replacing

stainless steel, bronze, brass, etc. It is strong, elegant, durable and non-rustic in

nature. The Aluminium vessls are cheaper compared to stainless steel vessels and in

country where people with low and middle income are more the consumption of

aluminium vessels are increasing. The aluminium vessels are also replaced frequently

at cheaper cost.

B. PRODUCT USES AND SPECIFICATIONS

The products cover all types of aluminium utensils used in households, hotels,

hospitals, canteens and other places for cooking The products are manufactured in

different shapes and designs which are popular in the market.Bureau of Indian

Standards has prescribed IS:1660(part I) for Wrought Aluminium Utensils.

C. MARKET POTENTIAL

The number of lower-middle income groups to high income groups in the country has

been increasing over a period of time. By 2006-07 it is estimated that the lower income

group who are having a present income of Rs.22550 and below per annum will come

down to 20% of the total households in India.

The per capita consumption of aluminium in India is 0.7 kgs as against over 20 kgs in

most of the developed and developing world economies. The metal has a long working

life due to its propensity for recycling. Recycled metal requires significantly less

amounts of energy for manufacturing of primary aluminium.he circles used for

aluminium vessels are recycled materials.

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The metal has a long working life due to its propensity for recycling. Recycled metal

requires significantly less amounts of energy for manufacturing of primary aluminium.

Just to put things in perspective, the recycling of aluminium scrap requires 5% of the

energy required for primary smelting, which is astoundingly lower, considering that

power is such a high cost component.

After a 3% growth production growth witnessed globally, growth has continued in the

range of 3%-4% in 2003. In 2002, global aluminium consumption showed a sharp

growth rate of over 5%, which was primarily a factor of the Chinese demand for the

metal.

On the domestic front, a fall of about 1% was registered in production in FY02.

However, the consumption improved by 4%-5%.. With the Government focusing

towards attaining GDP growth rates above 8%, the key consuming industries are likely

to lead the way, which could positively impact aluminium consumption. Domestic

demand is estimated to grow by 6% - 8% YoY.

The improvement in the economy in FY03 had its positive impact on the aluminium

industry, which can be gauged from the fact that production increased by 7% in FY03,

while the consumption registered a growth of 5%. During FY03, the Index of Industrial

Production (IIP) grew by 5.8%, which was a strong improvement over FY02's 2.6%

growth. Coming into FY04, IIP registered a growth of 5.3% in 1QFY04 as compared to

4.3% in the corresponding period last year. The domestic demand in the current fiscal

is expected to be remain firm.

D. TECHNICAL ASPECTS 1. Installed Capacity

The installed capacity of the unit is 120 kgs of aluminium vessls per day on single shift

basis. On this basis the annual capacity will be 36 tonnes per annum.

3

2. Plant and Machinery

The following items of equipment are required.

Machine name Quantity Nos

Value (Rs.lakhs)

Spinning Lathes 6 2.80 Bench Polishers 4 0.60 Hand press 1 0.10 Single Body Hand Press 1 0.03 Swaging & Beading Machine 1 0.10 Gas Welding Set 1 0.06 Other miscellaneous 0.31

Total 4.00 3. Manufacturing Process

Aluminium circles are placed in the ties attached with the exterior of the spinning lathe.

Then this circle is held tightly with the help of the centre and drawn into the tie shape

with the help of the tools by manual operation. Then releasing the centre, the vessel is

taken out. This process is continued for eight hours by one skilled labourer. Then this

vessel is brightened by polishing the vessel by means of polish motor. For this purpose

the soap and cotton wheels are used. Then the brightened vessels are packed in

polyethene papers and sent to market after the vessels are fitted with handles.

4. Raw Material

The main raw material required is Aluminium circles which are available from aluminium

manufacturers and dealers. The consumables are soap and cotton which are available

locally.

5. Land & Building

A rented place with 2000 sqft. area is required. The monthly rent is estimated at

Rs.10,000 and also an advance of Rs.1,00,000.

6. Utilities Power:

The total power requirement of the unit will be 10 HP

4

Water:

Water is required only for human consumption.

Man power: Category Nos Monthly

salary Total

Salary Supervisors 1 5000 5000 Spinners 6 3000 18000 Polishers 8 3000 24000 Helpers 6 2000 12000 Accountant 1 4000 4000 Security 2 2000 4000 Total 57000 Add 20%benefits 11400 Total 68400 Annually � Rs.8.21 lakhs 7. Implementation Schedule

If financing arrangements is made available the project can be implemented with in one

month’s period.

8. ASSUMPTIONS Installed capacity per annum Aluminium Vessels-36 MT Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Aluminium Vessels-Rs.190 000/per MT Material cost at 100% Qty(incldg.

wastage) Rate/MT Value

(Rs.lakhs) Aluminium Circles 32.72 MT 138000 50.67 Consumables per annum-at 100% (Rs.lakhs) Rs.0.24 lakhs Power and Fuel-100% (Rs.lakhs) Rs.0.82 lakhs Wages & salaries -100% (Rs.) Rs.4.82 lakhs Repairs & Maintenance- p.m. Rs.2000/- Depreciation Straight Line Method General & administration Expenses per month Rs.100000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a. Income tax provision 36% on profit

5

LIST OF MACHINERY SUPPLIERS 1. Orient Machine Tools New No.269 (old No.130) Linghi Chetty Street Chennai-600 001 2. Quality Machine Tools New No.238, Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New No.279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New No.103, Armenian Street Chennai 600 001 5. Machine Centre New 214 linghi chetty Street Chennai 600 001 LIST OF RAW MATERIAL SUPPLIERS 1. Premier Metal engineering Corporation JVL Towers 117, Nelson Manikem Road Chennai-600 029 2. Southern Aluminium Company New No.22, Mooker Nallamuthu Street Chennai-600 001 3. Zenith Traders New No.62, Nynuyappa naicken street Chennai-600 003 4. Tamilnadu Aluminium Company 44, basin Bridge Road Mint Chennai-600 025

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1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 0.50 Plant & Machinery 8.00 Other Misc. assets 0.50 Pre-Operative expenses 1.00 Margin for WC 1.34 11.34 2. MEANS OF FINANCE Capital 5.34 Term Loan 6.00 11.34

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3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity p.a. (MT) 36 36 36 Utilisation 60% 70% 80% Production/Sales p.a. (MT) 22 25 29 Selling Price/ MT (in Rupee) 190,000 Sales Value 41.80 47.50 55.10 Raw Materials 30.40 35.47 40.54 Consumables 0.14 0.17 0.19 Power 0.49 0.57 0.65 Wages & Salaries 4.82 5.06 5.31 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 0.95 0.95 0.95 Cost of Production 37.04 42.47 47.90 Admin, & General expenses 1.20 1.26 1.32 Selling expenses 1.25 1.43 1.65 Interest on Term Loan 0.84 0.74 0.53 Interest on Working Capital 0.50 0.50 0.50 Total 40.83 46.40 51.90 Profit Before Tax 0.97 1.10 3.20 Provision for tax 0.35 0.40 1.15 Profit After Tax 0.62 0.70 2.05 Add: Depreciation 0.95 0.95 0.95 Cash Accruals 1.57 1.65 3.00

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4. WORKING CAPITAL: [Rs.lakhs] Months Values % Margin Bank Consumption Amount Finance Raw Materials 0.75 1.90 25% 0.48 1.42 Consumables 1.00 0.01 25% 0.00 0.01 Finished goods 0.25 0.77 25% 0.19 0.58 Debtors 0.50 1.74 10% 0.17 1.57 Expenses 1.00 0.50 100% 0.50 0.00 4.92 1.34 3.58 5. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 2.05 Sales 55.10

4%

Profit before Interest and Tax 4.23 Total Investment 14.92

28%

Profit after Tax 2.05 Promoters' Capital 5.34

38%

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6. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 5.31 Repairs & Maintenance 0.26 Depreciation 0.95 Admin. & General expenses 1.32 Interest on TL 0.53 8.37 Profit Before Tax (P) 3.20

FC x 100 8.37 80 BEL = FC +P 11.57

x 100

x 100

58% of installed capacity

1

ALUMINIUM CIRCLES FROM SCRAP (ALUMINIUM CASTING AND ROLLING) A. INTRODUCTION

Aluminium is a versatile metal which finds major applications in almost all areas such as

building construction, household utensils, industrial products, general engineering,

electrical engineering etc. It has light weight, high strength to weight ratio, corrosion

resistance, electrical and thermal conductivity and no toxicity. The aluminium circles

manufactured out of aluminium scrap by way of casting and rolling has good demand

from aluminum vessel manufacturers and other aluminium can manufacturers and other

users. Vessels are widely used by common population in India. With the growth of

population in the country the usage of Aluminium vessels is increasing. Aluminium is

fast replacing stainless steel, bronze, brass, etc. It is strong, elegant, durable and non-

rustic in nature. The Aluminium vessels are cheaper compared to stainless steel

vessels and in country where people with low and middle income are more, the

consumption of aluminium vessels are increasing. The aluminium vessels are also

replaced frequently at cheaper cost.


The products proposed to be manufactured are Aluminum circles of size Dia 5” to 18’

with thicknesses ranging from 0.9 mm to 2mm which are most popular sizes.

Aluminium circles are used to manufacture aluminium vessels, utensils, packing cans,

and other industrial products.

C. MARKET POTENTIAL





2









metal.


However, the consumption improved by 4%-5%. With the Government focusing












The installed capacity of the unit is 300 Tonnes of aluminium circles per annum on

single shift basis,8 hours per day, for 300 days.

3



Machine name Quantity (Nos.)

Value (Rs.lakhs)

Oil fired aluminum melting Furnace for batch capacity of 170 kgs suitable for 26” dia C.I Pan

1 0.80

Pumping ,Heating and Filtering unit consisting of Oil pre-heater, Gear pump, Electric motor with valves fittings

1 0.45

Centrifugal air blower 1 0.60 Aluminum cold rolling machine complete unit of 14x 36 with steel housing high carbon rolls, clutch system, Closed pinion box, Double reduction gears, Gunmetal bearing Fly wheel base plate etc

1 7.50

Oil fired aluminum sheet annealing furnace with refractory materials plates channels, air and oil pipelines

1 2.60

Miscellaneous items like Hand operated circle cutting machine, Power circle cutting machine, Shearing machine, C.I moulding plate, C.I.Pan spoons, Holding bars, Chain Block 3 Tonne capacity

2.60

Miscellaneous Tools etc 0.45 Total 15.00 3. Manufacturing Process

The process of manufacturing aluminium from the scrap involves the following

sequence of operations

Melting of aluminium scrap along with additives in oil fired furnace and removal of slag I

Pouring into slab moulds I

Taking into Rolling Machines I

Annealing I

Rolling to required thickness I

Circle cutting (circles of desired sizes) 4. Raw Material

The main raw material required is Aluminium Scrap which is available from aluminium

scrap dealers. The consumables such as alloys and additives for casting are also

available from dealers.

4

5. Land & Building


Rs.25,000 and also an advance of Rs.250000.

6. Utilities Power:


Water:



salary Total

Salary Manager 1 7000 7000 Supervisors 2 5000 10000 Skilled 8 3000 24000 Unskilled 8 2000 16000 Assistant 3 3000 9000 Security 2 2000 4000 Total 70000 Add 20%benefits 14000 Total 84000 Annually � Rs10.08 lakhs 7. Implementation Schedule

If financing arrangement is made available the project can be implemented with in one

month’s period.

8. ASSUMPTIONS Installed capacity per annum Aluminium Circles-300 MT Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Aluminium Circles-Rs.115 000/MT

5

Material cost at 100% Qty(incldg.


(Rs.lakhs) Aluminium Scrap 330 Mt Rs.76000 250.80 Alloys & other additives Rs.10000 30.00

Total 280.80 Consumables per annum-at 100% (Rs. Lakhs) Rs.1.20 lakhs Power and Fuel-100% (Rs.lakhs) Rs.12.78 lakhs Wages & salaries -100% (Rs.lakhs) Rs.10.08 lakhs Repairs & Maintenance- p.m. Rs.2000/- Depreciation Straight Line Method General & administration Expenses per month Rs.50000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a. Income tax provision 36% on profit LIST OF MACHINERY SUPPLIERS 1. T.K.Industries 26, Hoodwharf (Walltax Road) Chennai-600 079. 2. P.Gopal Chettiar Rolling Works No.1033 T.H.Road Chennai-600 019 LIST OF RAW MATERIAL SUPPLIERS General Scrap Merchants, available in all towns 1. Badusha Enterprises 10/10 Chakrapani Road Chennai-600 032 2. KOP Enterprises 10/10 A Chakrapani Street Chennai-600 032 3. Mangal Metals-Kapoor metals 9.Ponnapan Lane Chennai-600 003

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity p.a.(MT) 300 300 300 Utilisation 60% 70% 80% Production/Sales (MT) 180 210 240 Selling Price/MT (in Rupee) 115,000 per MT Sales Value 207.00 241.50 276.00 Raw Materials 168.48 196.56 224.64 Consumables 0.72 0.84 0.96 Power 7.67 8.95 10.23 Wages & Salaries 10.08 10.58 11.11 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 1.70 1.70 1.70 Cost of Production 188.89 218.88 248.90 Admin, & General expenses 6.00 6.30 6.62 Selling expenses 6.21 7.25 8.28 Interest on Term Loan 1.54 1.35 0.96 Interest on Working Capital 2.61 2.61 2.61 Total 205.25 236.39 267.37 Profit Before Tax 1.75 5.11 8.63 Provision for tax 0.62 1.82 3.08 Profit After Tax 1.13 3.29 5.55 Add: Depreciation 1.70 1.70 1.70 Cash Accruals 2.83 4.99 7.25

8


2%


28%


41%

9


FC x 100 20.65 80 BEL = FC +P 29.28

x 100

x 100


1

ALUMINIUM CIRCLES FROM SCRAP (ALUMINIUM CASTING AND ROLLING) A. INTRODUCTION

Aluminium is a versatile metal which finds major applications in almost all areas such as

building construction, household utensils, industrial products, general engineering,

electrical engineering etc. It has light weight, high strength to weight ratio, corrosion

resistance, electrical and thermal conductivity and no toxicity. The aluminium circles

manufactured out of aluminium scrap by way of casting and rolling has good demand

from aluminum vessel manufacturers and other aluminium can manufacturers and other

users. Vessels are widely used by common population in India. With the growth of

population in the country the usage of Aluminium vessels is increasing. Aluminium is

fast replacing stainless steel, bronze, brass, etc. It is strong, elegant, durable and non-

rustic in nature. The Aluminium vessels are cheaper compared to stainless steel

vessels and in country where people with low and middle income are more, the

consumption of aluminium vessels are increasing. The aluminium vessels are also

replaced frequently at cheaper cost.


The products proposed to be manufactured are Aluminum circles of size Dia 5” to 18’

with thicknesses ranging from 0.9 mm to 2mm which are most popular sizes.

Aluminium circles are used to manufacture aluminium vessels, utensils, packing cans,

and other industrial products.

C. MARKET POTENTIAL





2









metal.


However, the consumption improved by 4%-5%. With the Government focusing












The installed capacity of the unit is 300 Tonnes of aluminium circles per annum on

single shift basis,8 hours per day, for 300 days.

3




Value (Rs.lakhs)

Oil fired aluminum melting Furnace for batch capacity of 170 kgs suitable for 26” dia C.I Pan

1 0.80

Pumping ,Heating and Filtering unit consisting of Oil pre-heater, Gear pump, Electric motor with valves fittings

1 0.45

Centrifugal air blower 1 0.60 Aluminum cold rolling machine complete unit of 14x 36 with steel housing high carbon rolls, clutch system, Closed pinion box, Double reduction gears, Gunmetal bearing Fly wheel base plate etc

1 7.50

Oil fired aluminum sheet annealing furnace with refractory materials plates channels, air and oil pipelines

1 2.60

Miscellaneous items like Hand operated circle cutting machine, Power circle cutting machine, Shearing machine, C.I moulding plate, C.I.Pan spoons, Holding bars, Chain Block 3 Tonne capacity

2.60

Miscellaneous Tools etc 0.45 Total 15.00 3. Manufacturing Process

The process of manufacturing aluminium from the scrap involves the following

sequence of operations

Melting of aluminium scrap along with additives in oil fired furnace and removal of slag I

Pouring into slab moulds I

Taking into Rolling Machines I

Annealing I

Rolling to required thickness I

Circle cutting (circles of desired sizes) 4. Raw Material

The main raw material required is Aluminium Scrap which is available from aluminium

scrap dealers. The consumables such as alloys and additives for casting are also

available from dealers.

4

5. Land & Building


Rs.25,000 and also an advance of Rs.250000.

6. Utilities Power:


Water:



salary Total

Salary Manager 1 7000 7000 Supervisors 2 5000 10000 Skilled 8 3000 24000 Unskilled 8 2000 16000 Assistant 3 3000 9000 Security 2 2000 4000 Total 70000 Add 20%benefits 14000 Total 84000 Annually � Rs10.08 lakhs 7. Implementation Schedule

If financing arrangement is made available the project can be implemented with in one

month’s period.

8. ASSUMPTIONS Installed capacity per annum Aluminium Circles-300 MT Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Aluminium Circles-Rs.115 000/MT

5



(Rs.lakhs) Aluminium Scrap 330 Mt Rs.76000 250.80 Alloys & other additives Rs.10000 30.00

Total 280.80 Consumables per annum-at 100% (Rs. Lakhs) Rs.1.20 lakhs Power and Fuel-100% (Rs.lakhs) Rs.12.78 lakhs Wages & salaries -100% (Rs.lakhs) Rs.10.08 lakhs Repairs & Maintenance- p.m. Rs.2000/- Depreciation Straight Line Method General & administration Expenses per month Rs.50000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a. Income tax provision 36% on profit LIST OF MACHINERY SUPPLIERS 1. T.K.Industries 26, Hoodwharf (Walltax Road) Chennai-600 079. 2. P.Gopal Chettiar Rolling Works No.1033 T.H.Road Chennai-600 019 LIST OF RAW MATERIAL SUPPLIERS General Scrap Merchants, available in all towns 1. Badusha Enterprises 10/10 Chakrapani Road Chennai-600 032 2. KOP Enterprises 10/10 A Chakrapani Street Chennai-600 032 3. Mangal Metals-Kapoor metals 9.Ponnapan Lane Chennai-600 003

6


7


8


2%


28%


41%

9


FC x 100 20.65 80 BEL = FC +P 29.28

x 100

x 100


1

ANODISING A. INTRODUCTION

The chemistry of aluminium (and it's alloys) is interesting. Given that it's a reactive

metal (more so than iron) one would expect it to naturally corrode more rapidly than it

actually does. The reason it doesn't is that the initial formation of an oxide layer on the

surface protects the base metal underneath. Aluminium oxide is a tough material (it's

crystalised form is used as an abrasive - Allox), but normally it's formation in air results

in an amorphous layer with little mechanical strength, it's a white powder that can easily

be scraped off leading to further oxidation.

Anodising is an electro chemical terms which refers to anodic oxidation of a metal.

Anodising is generally referred to for aluminium and is well understood by every one as

an aluminium finishing.

B. PRODUCT USES & SPECIFICATION

Anodising on the other hand, is a process which forms a particularly structured and

dense oxide layer which resists abrasion and thus protects the underlying metal. This

layer is colourless, but it's possible to introduce a dye at one stage in the process to

permanently colour the surface. Not all aluminium alloys can be easily anodised, cast

aluminium (with a high silica content) is particularly difficult.

Although coating Thickness and colour specifications are to be determined according to

the end products the standard specifications like IS, BS, or ASTM are available. The

specifications quoted in ASTM, B580 is as follows.

Type A: 50 Micron Coating thickness- Hard Coating for Engineering Applications

Type B: 18 Micron Coating thickness -Architectural Class I applications

Type C: 10 Micron Coating thickness -Architectural Class II applications

Type D: 8 Micron Coating thickness- Automotive exterior applications

Type E: 5 Micron Coating thickness -interior moderate abrasion applications

Type F: 3 Micron Coating thickness- Interior limited application

2

Type G: 1 Micron Coating thickness- Chromic acid based electrolytes for aircraft

applications as well as base for painting

C. MARKET POTENTIAL

The product to be manufactured belong to the engineering sector and the general

engineering sector has been growing well all these years at faster rate. There is

continuous demand for this product as it is consumed in all engineering workshops.

A strong engineering base exists in the state of Tamilnadu involving products ranging

from automobiles, bicycles, castings and forgings, to textile machines, electrical and

non-electrical machinery, pumps and transportation equipment. Engineering ancillary

industries are concentrated in Chennai, Coimbatore, Salem, etc. The exports of

engineering products from Tamil Nadu is around Rs.14.50 billion (US $ 320 million) of

which automobile ancillaries along contribute around US $ 150 million. It is an

established fact that the automobile industry in the state accounts for nearly 50% of the

All India export market. The strong engineering base consists of a network of nearly

3,000 units, employing a skilled workforce of more than 2.5 lakh, making high quality

inputs such as castings and forgings and a wide variety of ancillary products. Intensive

efforts are being made to boost further development of this industry.

D. TECHNICAL ASPECTS

1. Installed capacity

The installed capacity is Anodising of 2000 Square Feet of Aluminum per day of two

shifts, 8 hours per shift. Based on this the annual capacity is 600 000 sq.ft of Anodising

per annum.

3


The machinery list is given below: Description Qty.

(Nos.) Value (Rs.lakhs)

Mechanical Polishing 1 0.07 Degreasing Tank 1 Alkaline Swill Tank. 1 D.E.Swill Dipping Tank 1 Water Swill tank 1 Anodising Tank 1 D.M.Swill tank 1 Sealing tank 1

5.00

Anodising Rectifier 1 3.10 Chilling Unit 1 1.00 Titanium Coil Chilling anodes,SS Anodes,Bus bar

3.50

Filter 0.45 Total 13.12

3. Manufacturing Process

The process of anodizing is as follows:

Alkaline Degreasing ↓

Water Swill ↓

Etching /Brightening ↓

Water Swill ↓

Desmuding ↓

water Swilll ↓

D.M.Water Swill ↓

Anodising ↓

Drag out ↓

D.M.Water Swill ↓

Colouring ↓

4

Drag out ↓

D.M.Water swill ↓

Sealing (High or medium or Cold Temperature) ↓

D.M.Water swill( for Cold sealing)`

4. Raw Materials

The materials required for the anodizing are various chemicals for anodizing. The main

materials are ATN 100, UF-9, H2 So4 (Sulphuric Acid) Caustic Soda, HNo3 (Nitric

Acid), Stannous Sulphate, Cold Sealing and Nickel Acetate. These are available from

the chemical dealers.

5. Land & Building

A Built up area of 4000 sqft. is required this may be taken on rental basis Rs.20000 per

month. Advance Rs.200 000.

6. Utilities

Power:

A power load of 100 HP is sufficient for the operation of the M/c.

Water:

Water is requirement is about 5000 litres per day.

Man Power:

Category Nos. Monthly Total Salary Salary p.m. Supervisor 2 5000 10000 Skilled workers 2 3000 6000 Helpers 6 2000 12000 Assistants 2 3000 6000 Security 2 2000 4000 -------- 38000 Add: 20% benefits 7600 -------- 45600 Total salary per annum (Rs.lakhs) Rs.5.47 lakhs

5

7. Implementation Schedule

As the machines and materials are available indigenously, the project can be

implemented within 3 months period if financial arrangements are made.

8. ASSUMPTION

Installed Capacity per annum Anodising 600 000 Sq.ft p.a. Capacity utilization - Year 1 60% - Year 2 70% - Year 3 80% Selling price Anodising Rs.8.50 Per Sq ft

Consumables(For 50 000Sq.ft Anodising)

Qty Rate/MT Value (Rs.)

ATN-100 10 lt 180 1800 UF-9 10 lt 110 1100 H2 So4-Sulphuric Acid 1500 Kgs 6 9000 Caustic Soda 200 kgs 25 5000 Nitric Acid 200 kgs 15 3000 Stannous Sulphate 50 kgs 675 33750 Cold Sealing 10 kgs 1750 17500 Nickel Acetate 10 kgs 575 5750 76900 Add 25 % for Loss 19225 Total 96125 Cost Per Sq ft 1.93

Power & Fuel at 100% (Rs.lakhs) Rs16.20 lakhs Wages & Salaries (Rs.lakhs) Rs.5.47 lakhs Repairs & Maintenance per month Rs.5 000 p.m Depreciation Straight Line method Administrative & General expenses p.m. Rs.30,000 Selling expenses 3% Interest on Term loan and Working capital finance

14%

6

LIST OF MACHINERY SUPPLIERS 1. Sri Ganesh Electrical Works 27. Alandur road Saidapet Chennai-60 015 2. Plating products co

New no 15, west coat road Royapetah Chennai-600 014

3. New Potentials 17, Alandur road Chennai 600 015 4. Chamanlal Baldevdas New 31, Venkatachala Mudali Street Chennai 600 003 LIST OF RAW MATERIAL SUPPLIERS 1. Plating chemicals 49, Venkatachala Mudali Street Park town Chennai-600 003 2. Srinivasa industries 15/2 -6th Street Kumaran Colony Chennai-600 026 3. Vaishnavi Metals 116, Egmore High Road Chennai-600 008

7


8

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (Sq.ft.) 600000 600000 600000 Utilisation 60% 70% 80% Production/Sales (Sq.ft.) 360000 420000 480000 Anodising rate/sq.ft. (Rs.) 8.5 per sq.ft. Sales Value 30.60 35.70 40.80 Raw Materials 0.00 0.00 0.00 Consumables 6.95 8.11 9.26 Power 9.72 11.34 12.96 Wages & Salaries 5.47 5.74 6.03 Repairs & Maintenance 0.60 0.63 0.66 Depreciation 1.51 1.51 1.51 Cost of Production 24.25 27.33 30.42 Admin, & General expenses 3.60 3.78 3.97 Selling expenses 0.92 1.07 1.22 Interest on Term Loan 1.37 1.20 0.86 Interest on Working Capital 0.27 0.27 0.27 Total 30.41 33.65 36.74 Profit Before Tax 0.19 2.05 4.06 Provision for tax 0.07 0.74 1.46 Profit After Tax 0.12 1.31 2.60 Add: Depreciation 1.51 1.51 1.51 Cash Accruals 1.63 2.82 4.11

9


6%


26%


32%

10


FC x 100 13.03 80 BEL = FC +P 17.09

x 100

x 100


1

AUTOMOBILE GASKETS A. INTRODUCTION

The function of a gasket is to seal the two faces of components to avoid leakage of fluid

and air in the system in automobiles and other pneumatic and hydraulic systems

gaskets are used. Metallic and non metallic gaskets are used .There is large demanded

for the Automobile gaskets for replacement and O.E markets.

B. PRODUCT USES AND SPECIFICATIONS Bureau of Indian standards has not prescribed standards for the automobile gaskets.

The main types of gaskets which are manufactured are as follows.

Cylinder head gaskets

Head Gasket

Full Set Gasket

Timing Kit Gasket

Rocker Cover Gasket

Rocker Cover Kit Gasket

Oil Seal Gasket

Ex-manifold Gaskets

Exhaust pipe Gaskets

Inlet Gasket

Oil Pan Gasket

Oil Pan Set Gasket

Flange Gasket

Chamber gasket

Spenting Roll Gasket

Water Pump gasket

CV Joints Boots

Head Set

Conversion Set

Inlet- manifold

2

C. MARKET POTENTIAL

There are two types of demand for Automobile Gaskets 1. O. E. Demand and 2.

Replacement demand. The O. E Demand will increase with the production of original

vehicles. The replacement demand is dependent on the wear and tear and replacement

of the vehicle owners as this is a critical equipment and replacement is essential to run

the vehicle, the replacement demand is bound to increase. With the setting up major

automobile projects namely Ford Motors, Hyundai Motors, Hindustan Motors,

Mitsuibishi and with expansion plans of Ashok Leyland & TAFE, Chennai emerges the

Detroit of south East Asia. TamilNadu has always been a fore-runner in the industrial

process, both in terms of industrial output and also terms of encouraging various new

large-scale projects. Having recorded an impressive is growth industry in the post-

reform span, it is poised for further industrial development and expansion. At present

the state accounts for over 11-12% of India’s industrial output. Automobile ancillaries

have O.E. Market and Replacement market for all automobile


The proposed installed capacity of the unit is 4800 Kgs of Automobile Gaskets per

annum .This is based on a capacity of 160 Kgs per day of single shift operation,8 hours

per day, 300 days in a year.


The following machineries are required for production.

Machine name Quantity Nos Value Rs lakhs Power Press 10 Mt capacity 1 0.40 Bench grinder 1 0.05 Fly Press No 6. 1 0.06 Hand shearing machine 1 0.03 Portable Drilling machine 1 0.05 Dies and fixtures 1 0.30 Hand tools and Measuring Instruments 0.11 Total 1.00

3


Purchase of Gasket Sheets (Cork sheets, Asbestos sheets, Rubber sheets, etc) I

Cutting in shearing machine I

Gasket Punching in Power Press with use of dies and punches I

Drilling holes and grinding I

Finishing I

Packing 4. Raw Material

The raw materials required for the production of Automobile gaskets are Gasket

Sheets of various thicknesses. This material can be procured from any reputed dealers

of steel.

5. Land & Building


Rs.3,000 and also an advance of Rs.30 000.

6. Utilities Power: The total power requirement of the unit will be 20 HP Water: Water is required only for human consumption.


salary Total Salary

Operators 2 3000 6000 Unskilled 1 2000 2000 Assistants 1 3000 3000 Security 1 2000 2000

Total 13000 Add 20%benefits 2600

Total 15600 Annually -> Rs 1.87 lakhs

4


If financing arrangement is made available the project can be implemented with in three

months period.

8. ASSUMPTIONS Installed Capacity per annum Automobile Gaskets 4080 Kgs p.a. Capacity utilization - Year 1 60% - Year 2 70% - Year 3 80% Selling price per piece Automobile Gaskets – Rs.250 /Kg

Raw Material required per Kg Value (Rs.) Gasket sheets of various thicknesses 4900 Kgs @ Rs 75.00 per kg

3.68

Consumables cost p.a. at 100% (Rs.lakhs) Rs.0.24 lakh Power & Fuel at 100% (Rs.lakhs) Rs.1.61 lakh p.a Wages & Salaries (Rs.lakhs) Rs.1.87 lakhs Repairs & Maintenance per month Rs.2,000 p.m Depreciation Written Down Value method Administrative & General expenses p.m. Rs.5,000 Selling expenses 3% Interest on Term loan and Working capital finance

14%

5

LIST OF MACHINERY SUPPLIERS 1. Orient Machine Tools New 269(old no 130) Linghi Chetty Street Chennai-600 001 2. Quality Machine Tools New 238 Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New 103 Armenian Street Chennai 600 001 5. Machine Centre New 214 linghi chetty Street Chennai 600 001 LIST OF RAW MATERIAL SUPPLIERS 1. Brook Inc

576, Mount road Chennai- 600018

2. National Core Products India

New 320, T.T.K.Road Chennai-600 018

3. Anchor Cork Pvt Ltd

LOBO Compound M.V. Road Sakinaka Mumbai-400 072

4. Rubber Sales Corporation

22 Mooker Nallamuthu Street Chennai-600 001

5. Rusko International Products

22, Mooker nallamthu Street Chennai-600 001

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (Kgs.) 4800 4800 4800 Utilisation 60% 70% 80% Production/Sales (Kgs.) 2880 3360 3840 Selling Price/kg (in Rupee) 250 per Kg. Sales Value 7.20 8.40 9.60 Raw Materials 2.21 2.58 2.94 Consumables 0.14 0.17 0.19 Power 0.97 1.13 1.29 Wages & Salaries 1.87 1.96 2.06 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 0.35 0.26 0.10 Cost of Production 5.78 6.35 6.84 Admin, & General expenses 0.60 0.63 0.66 Selling expenses 0.36 0.42 0.48 Interest on Term Loan 0.11 0.09 0.07 Interest on Working Capital 0.07 0.07 0.07 Total 6.92 7.56 8.12 Profit Before Tax 0.28 0.84 1.48 Provision for tax 0.10 0.30 0.53 Profit After Tax 0.18 0.54 0.95 Add: Depreciation 0.35 0.26 0.10 Cash Accruals 0.53 0.80 1.05

8


10%


58%


61%

9


FC x 100 3.15 80 BEL = FC +P 4.63

x 100

x 100


1

AUTOMOBILE LEAF SPRINGS A. INTRODUCTION

Automobile leaf spring is one of the most important component in an automobile

vehicle. Springs are placed between the road wheels and the body in an automobile,

when wheel comes across a bump on the road it rises and deflects the spring, thereby

storing energy therein. On releasing, due to the elasticity of the spring material, it

rebounds thereby expending the stored energy. In this way the spring starts vibrating

with amplitude decreasing gradually on account of internal friction of the spring material

and friction of the suspension joints, till vibrations die down. The demand for automobile

leaf springs is increasing as there is O.E. market and Replacement market for these

items as they are frequently replaced.


A Leaf spring generally consists of 4 to 21 leaves including the main leaf or mother

plate. The length of the main leaf varies from 650 mm to 1550 mm between the centres

of the two eyes. The width of the leaves varies from 35 mm to 75 mm while the

thickness varies from 5 mm to 12 mm. The main leaf is formed into eyes at the ends to

support the shackle pins where as the other leaves are flat and are arranged in

descending order of length to provide proper spring action. The leaves are bolted

together in the middle by a centre bolt and clamps are fitted suitable intervals to hold the

leaves in proper position.

Bureau of Indian Standards has prescribed necessary standards under IS-1135 for

Automobile Leaf Springs

C. MARKET POTENTIAL

There are two types of demand for Leaf springs 1.O.E.Demand and 2.Replacement

demand. The O.E Demand will increase with the production of original vehicles. The

replacement demand is dependent on the wear and tear and replacement of the vehicle

owners as this is a critical equipment and replacement is essential to run the vehicle,

2

the replacement demand is bound to increase. With the setting up major automobile

projects namely Ford Motors, Hyundai Motors, Hindustan Motors, Mitsuibishi and with

expansion plans of Ashok Leyland & TAFE, Chennai emerges the Detroit of south East

Asia. TamilNadu has always been a fore-runner in the industrial process, both in terms

of industrial output and also terms of encouraging various new large-scale projects.

Having recorded an impressive is growth industry in the post-reform span, it is poised

for further industrial development and expansion. At present the state accounts for over

11-12% of India’s industrial output. Automobile ancillaries have O.E. Market and

Replacement market for all automobile


The installed capacity of the proposed unit is manufacturing of 6000 Sets of Auto leaf

springs (10 Leaves each) per annum. This is based on 20 sets of leaf springs per day of

8 hours working for 300 days in a year.



Machine name Quantity (Nos)

Value (Rs.lakhs)

Power hacksaw Capacity-150 mm-1 HP 1 0.30 Centre Lathe 1200 x150 mm ” 1 0.50 Bench Grinder 200 mm dia Pillar drilling machine 32 mm

1 0.05

Drilling machine pillar type 20 mm 1 0.75 Single action power Press 150 MT 1 5.80 Hand operated Eye Rolling machine 1 0.80 Pedestal Grinding machine450 x 50 mm 1 0.50 Hearth furnace and Blower 1 0.40 Oil fired Furnace 1 1.00 Oil fired furnace 1200x 750x 1800 1.00 Cambering machine 0.20 Quenching tank1800x 1200x900 0.40 Water tank and cooling tower 1.00 Spray painting Booth 0.09 Oil tank for furnace 0.20

3

Hand tools 0.05 Hardness tester 0.20 Spring load testing machine 1.10 Measuring Instruments 0.10 Jigs Fixtures and cutting Tools 0.56


The manufacturing of Automobile leaf springs involves the following sequence of operations.

Purchase of EN-45A flats and cutting to size I

Drilling the holes and punching I

Heating to 950° C for eye forming on main leaf I

Eye forming on hand operated eye forming machine I

Heating to 920-950 o C o in oil fired furnace for camber forming as well as hardening I

Quenching into quenching oil tank for hardening I

Tempering at 450°-550° C I

Rectification for distortion for the spring �

Camber adjustment on power press Removing burs by files, emery paper/wheels finish fittings �

Eye grinding on pedestal grinder �

Fitting of bushes on main leaf �

Assembling of the leaf for making sets �

Load testing �

Painting and despatching 4. Raw Material

The raw materials required for manufacturing Automobile Leaf Springs are Spring steel

flat varieties of EN-45 -A or EN-47 of suitable widths and thicknesses. The other

4

materials are bushes, centre bolts, nuts, clamps, and pins, and other materials. These

are available from dealers.

5. Land & Building

A rented place with 2000 sqft. area is required. The monthly rent is estimated at Rs.100

00 and also an advance of Rs.100 000.

6. Utilities

Power: The total power requirement of the unit will be 30 HP Water: Water is required only for human consumption.


salary Total

Salary Manager 1 7000 7000 Supervisors 1 5000 5000 Operators 4 3000 12000 Unskilled 8 2000 16000 Assistants 2 3000 6000 Security 2 2000 4000 Total 50000 Add 10%benefits 5000 Total 55000 Annually � Rs.6.60 lakhs 7. Implementation Schedule

If financing arrangement is made available the project can be implemented within three

months period.

8. ASSUMPTIONS Installed capacity per annum Auto Leaf Spring 6000 sets Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Auto Leaf Springs Rs.3000/set

5

Material cost at 100% Qty(incldg. wastage)

Rate/MT Value (Rs.lakhs)

EN-45A-Steel 420 Mts Rs.32000 134.40 Consumables and Packing p.a. at 100% (Rs.lakhs)

Rs.1.20 lakhs

Power and Fuel-100%-Rs lakhs Power Rs.10.00 lakhs (Furnace oil 36000 ltrs.Rs 7.20 Lakhs Hard Coke 36 Mt rs 0.36 lakhs,Quenching oil 40 Litres

Rs.2000) Wages & salaries-100% Rs.6.60 lakhs Repairs & Maintenance per month Rs.5000/- Depreciation Straight Line Method General & administration Expenses per month Rs.20000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance

14% p.a

Income tax provision 36% on profit

6

LIST OF MACHINERY SUPPLIERS Machine Tools 1. Quality Machine Tools New No.238, Linghi Chetty Strret Chennai 600 001 2. Gujrat Machine Tools New No.279, Linghi Chetty Street Chennai 600 001 3. Premier Machine Tools New No.103, Armenian Street Chennai 600 001 4. Machine Centre New No.214 linghi chetty Street Chennai 600 001 Tempering /Heat Treatment Furnaces 1. Pyrotherm Engineers 245/2B Vanagaram Road Athipet Chennai-600 058 2. Pyromasters Furnaces Pvt Ltd A-13 SIDCO Industrial Estate Villivakkam Chennai-600 049 3. KSM Laboratory Glass Works 40 NP.Thiru-vi-ka Industrial Estate Chennai-600 032 4. Thermal Systems TS-33 TVK Street Guindy Chennai_600 032

7

LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New No.273, Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54, Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006 5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003 6. Upper India steels ltd 211.Vandana Towers Haddows Road Nugambakkam Chennai-600 034

8


9

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (Set) 6000 6000 6000 Utilisation 60% 70% 80% Production/Sales (Set) 3600 4200 4800 Selling Price/set (in Rupee) 3,000 per set Sales Value 108.00 126.00 144.00 Raw Materials 80.64 94.08 107.52 Consumables 0.72 0.84 0.96 Power 6.00 7.00 8.00 Wages & Salaries 6.60 6.93 7.28 Repairs & Maintenance 0.60 0.63 0.66 Depreciation 1.80 1.80 1.80 Cost of Production 96.36 111.28 126.22 Admin, & General expenses 2.40 2.52 2.65 Selling expenses 3.24 3.78 4.32 Interest on Term Loan 1.58 1.38 0.98 Interest on Working Capital 1.31 1.31 1.31 Total 104.89 120.27 135.48 Profit Before Tax 3.11 5.73 8.52 Provision for tax 1.11 2.05 3.04 Profit After Tax 2.00 3.68 5.48 Add: Depreciation 1.80 1.80 1.80 Cash Accruals 3.80 5.48 7.28

10


4%


35%


52%

11


FC x 100 13.37 80 BEL = FC +P 21.89

x 100

x 100


1

BRAKE LININGS A. INTRODUCTION

Brake Linings are brake shoes which are used in light and heavy commercial vehicles,

passenger cars, scooters as friction materials for stopping, speed reducing of vehicle.

These components constitute a very important part of the total braking system of these

vehicles.


Bureau Of India Standards has prescribed standards under IS : 1521-1960. for Brake linings

C. MARKET POTENTIAL

There are two types of demand for Brake Linings 1.O.E.Demand and 2.Replacement















The installed capacity proposed is 90,000 nos. brake linings in small scale sector per

annum. This is based on 300 days working on single shift basis.

2


The following plant & machinery are required. Description Qty.


Medium lathe 1 1.40 Drilling machine 1 0.15 Bench Grinding 1 0.10 Power Hacksaw 1 0.35 Other tools & equipment 0.55

Total 2.55


The manufacturing process of Brake linings is as follows:

Purchase of cast iron ↓

Grinding ↓

Drilling ↓

Purchase of Lining materials ↓

Fitting of lining ↓

Purchase of paste/adhesive –Pasting ↓

Fitting Screws ↓

Packing and Despatching

4. Raw Materials

The materials required are cast iron components, Asbestos, Chemicals, resins, paste

adhesive and screws. The casting items can be procured from foundries in Coimbatore.

Other materials are available from dealers.

5. Land & Building

A Building area of 500 sqft. is required this may be taken on rental basis Rs.2500 per

month. Advance Rs.25000.

3

6. Utilities

Power:


Water:

Water is requirement human consumption only.

Man Power:

Category Nos. Monthly Total Salary Salary p.m. Supervisor 1 5000 5000 Skilled workers 2 3000 6000 Unskilled workers 2 2000 4000 Accountant 1 3000 3000 Security 4 2000 8000 -------- 26000 Add: 20% benefits 5200 -------- 31200 -------- Total salary per annum (Rs.lakhs) Rs.3.74 lakhs 7. Implementation Schedule



8. ASSUMPTION

Installed Capacity per annum Brake Lining – 90,000 Pieces p.a.

Capacity utilization - Year 1 60% - Year 2 70% - Year 3 80% Selling price per piece Brake Lining – Rs.40/piece

4

Raw Material required per piece Value (Rs.)

Cast Iron component 10.00 Asbestos 5.00 Chemical resins / Paste 2.00 Screws etc. 1.00 Total cost per piece 18.00

Consumables cost p.a. at 100% (Rs.lakhs) Rs.1.20 lakhs Power & Fuel at 100% (Rs.lakhs) Rs.0.81 lakh p.a Wages & Salaries (Rs.lakhs) Rs.3.74lakhs Repairs & Maintenance per month Rs.2,000 p.m Depreciation Straight Line method Administrative & General expenses p.m. Rs.5,000 Selling expenses 3% Interest on Term loan and Working capital finance

14%

5

LIST OF MACHINERY SUPPLIERS Machine Tools 1. Quality Machine Tools New No.238, Linghi Chetty Strret Chennai 600 001 2. Gujrat Machine Tools New No.279, Linghi Chetty Street Chennai 600 001 3. Premier Machine Tools New No.103, Armenian Street Chennai 600 001 4. Machine Centre New No.214 linghi chetty Street Chennai 600 001 5. Power Hydraulics,

Plot 10-c, 1st Main Road, Thirumalaipriya Nagar, Pudur, Ambattur, Chennai 600 053

LIST OF RAW MATERIAL SUPPLIERS 1. Ecmas Resin Pvt. Ltd.

3-6-260/101, Madhuri Mansion Himayath Nagar, Hyderabad 500 029

2. Bharath Resins & Chemicals

No.27, SP. Industrial Feeder Complex, Ambattur Estate Chennai 600 058.

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (No.) 90000 90000 90000 Utilisation 60% 70% 80% Production/Sales (No.) 54000 63000 72000 Selling Price/No. (in Rupee) 40 per piece Sales Value (Rs.lakhs) 21.60 25.20 28.80 Raw Materials 9.72 11.34 12.96 Consumables 0.72 0.84 0.96 Power 0.49 0.57 0.65 Wages & Salaries 3.74 3.93 4.13 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 0.36 0.36 0.36 Cost of Production 15.27 17.29 19.32 Admin, & General expenses 0.60 0.63 0.66 Selling expenses 0.65 0.76 0.86 Interest on Term Loan 0.27 0.23 0.17 Interest on Working Capital 0.22 0.22 0.22 Total 17.01 19.13 21.23 Profit Before Tax 4.59 6.07 7.57 Provision for tax 1.65 2.19 2.73 Profit After Tax 2.94 3.88 4.84 Add: Depreciation 0.36 0.36 0.36 Cash Accruals 3.30 4.24 5.20

8


17%


129%


177%

9


FC x 100 5.58 80 BEL = FC +P 13.15

x 100

x 100


1

CLUTCH PLATES A. INTRODUCTION

Clutch is a mechanism which enables the rotary motion of one shaft to be transmitted,

when desired, to a second shaft the axis of which is coincident with that of the first. A

clutch plate is a main component in the clutch mechanism of the automobile vehicle.

The usage is increased due to replacement of worn out clutches frequently.


The clutch plate consists of a steel plate with a splinted central hub. Annular friction

facings are attached to the steel plate by rivets. Special resins are being used to bind

the friction facings. High tensile grey iron is the most commonly used material for

pressure plate which must be sufficiently rigid so as not to distort under the pressure of

the clutch springs. Adequate rigidity is also required to provide uniform pressure to

clutch plate. The pressure plate should also have sufficient mass and thermal

conductivity to absorb and conduct away the heat generated during engagement.

C. MARKET POTENTIAL

Car and motorcycle sales are rising in India, as drivers replace old vehicles with new

passenger cars, multi-utility vehicles, as well as two- and three-wheelers. Consequently,

demand for automotive components will remain strong. The replacement market for

clutch plates, which are essential parts of the transmission system, is projected to see

substantial gains. As drivers put more new vehicles on the road, traffic congestion will

necessitate frequent gear changes, diminishing the life of a clutch plate and boosting

the need for replacement parts.

The Govt. of India has proposed legislation to ban the use of vehicles that are older

than 15 years. The goal is to reduce air pollution caused by old vehicles, primarily in

metropolitan areas. If enacted, the law will be applied to cities first. However, banned

vehicles will not disappear; they will likely be reintroduced in areas where the legislation

is not strictly enforced. As a result, the replacement market for clutch plates will diminish

2

within urban centers and grow in less populated areas, where vehicle owners will

choose parts based on price instead of quality. The manufacturers of components have

a distinct advantage over the producers of commercial vehicles and other automobiles

as their sales in the replacement market are much larger than those effected as original

equipment and this has been the reason why the recession the automobile industry did

not affect seriously the efficient producers of components.. With practically all segments

of the domestic automotive sector set to grow, the component units have a bright future.

There are two types of demand for Clutch Plates1.O.E.Demand and 2.Replacement














The installed capacity of the proposed unit is manufacturing of 180 000 Nos of Auto

Clutch Plates per annum. This is based on 600 Nos of Clutch plates per day of 8 hours

working for 300 days in a year.

3




Value (Rs.lakhs)

Power Press 100 Tonnes for punching 1 5.80 Heat Treatment/Glue Hardening Furnace 1 2.00 Jigs Fixtures and cutting Tools 0.50


The manufacturing of Automobile Clutch Plates involves the following sequence of operations.

Purchase of Clutch Plate Castings �

Drilling the holes and punching �

Purchase of resins / Glues �

Fixing Glues �

Hardening in Hardening Furnace �

Inspection and Despatch 4. Raw Material

The raw materials required for manufacturing Automobile Clutch Plates are Cast Iron

Plates. These can be made available from iron casting units. The other materials such

as glues can be made available from the dealers.

5. Land & Building

A rented place with 1000 sqft. area is required. The monthly rent is estimated at Rs.50

00 and also an advance of Rs.50 000.

6. Utilities


4


salary Total

Salary Supervisors 1 5000 5000 Operators 1 3000 3000 Unskilled 2 2000 4000 Assistants 1 3000 3000 Security 1 2000 2000 Total 17000 Add 10%benefits 3400 Total 20400 Annually � Rs.2.45 lakhs 7. Implementation Schedule


months period.

8. ASSUMPTIONS Installed capacity per annum Auto Clutch Plates180 000 nos Capacity utilization-Year -1 60% Year-2 70% Year-3 80%

Selling price per unit Auto Clutch Plates Rs.20.00 per piece

Material cost at 100% Rate/per

piece (Rs.) Value

(Rs.lakhs) Castings/sheets Including Resins

Rs.10.00 18.00

Consumables and Packing p.a. at 100% (Rs.lakhs) Rs.1.20 lakhs Power and Fuel-100%-Rs lakhs Rs.2.60 lakhs Wages & salaries-100% Rs.2.45 lakhs Repairs & Maintenance per month Rs.5000/- Depreciation Straight Line Method General & administration Expenses per month Rs.10000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a Income tax provision 36% on profit

5

LIST OF MACHINERY SUPPLIERS Machine Tools 1. Quality Machine Tools New No.238, Linghi Chetty Strret Chennai 600 001 2. Gujrat Machine Tools New No.279, Linghi Chetty Street Chennai 600 001 3. Premier Machine Tools New No.103, Armenian Street Chennai 600 001 4. Machine Centre New No.214 linghi chetty Street Chennai 600 001 Hardening/Heat Treatment Furnaces 1. Pyrotherm Engineers 245/2B Vanagaram Road Athipet Chennai-600 058 2. Pyromasters Furnaces Pvt Ltd A-13 SIDCO Industrial Estate Villivakkam Chennai-600 049 3. KSM Laboratory Glass Works 40 NP.Thiru-vi-ka Industrial Estate Chennai-600 032 4. Thermal Systems TS-33 TVK Street Guindy Chennai_600 032

6

LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New No.273, Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54, Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006 5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003 6. Upper India steels ltd 211.Vandana Towers Haddows Road Nugambakkam Chennai-600 034

7


8

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (No.) 180000 180000 180000 Utilisation 60% 70% 80% Production/Sales (No.) 108000 126000 144000 Selling Price/piece (in Rupee) 20 per piece Sales Value 21.60 25.20 28.80 Raw Materials 10.80 12.60 14.40 Consumables 0.72 0.84 0.96 Power 1.56 1.82 2.08 Wages & Salaries 2.45 2.57 2.70 Repairs & Maintenance 0.60 0.63 0.66 Depreciation 0.93 0.93 0.93 Cost of Production 17.06 19.39 21.73 Admin, & General expenses 1.20 1.26 1.32 Selling expenses 0.65 0.76 0.86 Interest on Term Loan 0.84 0.74 0.53 Interest on Working Capital 0.23 0.23 0.23 Total 19.98 22.38 24.67 Profit Before Tax 1.62 2.82 4.13 Provision for tax 0.58 1.02 1.49 Profit After Tax 1.04 1.80 2.64 Add: Depreciation 0.93 0.93 0.93 Cash Accruals 1.97 2.73 3.57

9


9%


40%


57%

10


FC x 100 6.14 80 BEL = FC +P 10.27

x 100

x 100


1

ELECTRO COATING A. INTRODUCTION

Electro Coating is a method of giving a metal an organic finish by using electrical

current to deposit the paint. The process works on the principle of ‘opposites attract’.

An electro coat system applies a DC charge to a metal part immersed in a belt of

oppositely charged paint articles. The paint articles are drawn to the metal part and

paint is deposited on the part forming an even continuous film over every surface, in

every crevice and corner until the coating attains the desired thickness. At that

thickness the film insulates the part and the attraction of paint particle stops and electro

coating is complete. Electro coating could be projective decorative and may combine

the properties of both depending upon the end use.

B. PRODUCT USES

APPLICATIONS OF ELECTRO COATING IN THE INDUSTRIES END USE ELECTRO COATING BENEFITS Agricultural Equipment High Gloss, Resistance, Colour

Control, Weatherability, Corrosion resistance.

Appliances Corrosion and Stain Resistance, Colour control in recessed areas.

Automobiles Corrosion and Chip resistance, Weatherability

Brass, Gold, Nickel, Aluminium Aesthetic quality and Corrosion Resistance

Can(containers) Barrier and Chemical Resistance Electrical switch Gear Corrosion Resistance and UL approval Fasteners Corrosion and Edge cover Heating, Ventilation and cooling Corrosion Resistance, colour control &

weatherability Laboratory Furniture Chemical, stain and corrosion

resistance colour control Lawn and gardens Corrosion resistance and weatherability Printed circuit Boards Edge coverage and Hardness Shelving and Furniture Colour control hardness and stain

resistance Wheels Corrosion and chip resistance,

weatherability

2

C. MARKET POTENTIAL

The main advantages of Electro coating are:

- High corrosion protection property

- Coating of complex parts

- High transfer efficiency

- Very low incidence of rejects

- Much higher productivity

- Much better quality

- Ease in handling

Electro coat is utilized in a variety of industrial market segments. Each of these markets

has specific performance requirements, leading to the development of a number of

electro coat technologies to meet their needs. Electro coat has also become an

accepted finishing method for new applications such as:

- Speciality clear finishes over Aluminium, Brass and Zinc plate

- Extremely low gloss coating for military and photographic applications.

- Chemical resistant coating

- Transparent metallic –type finishes over Nickel or Zinc plating.

- Uniform coating

The electro coat is used in all automobile and engineering components. The growth of

these sectors had been substantial all over these years.

D. TECHINICAL ASPECTS


The installed capacity of the plant is 1.39 sq.metres of coating per 3 minutes. On this

basis the installed capacity is 444.8 sq.metres in 16 hours. The annual capacity is

133440 sq.metres. After applying the efficiency factor of 90% the installed capacity

works out to 120000 sq.metres.

3

2. Plant & Machinery

The machinery items consists of the following Particulars Qty

(Nos.) Value (Rs.Lakhs)

Pre-treatment Line-seven Tank process 1 2.80 Electro coat system 1 16.00 Baking Oven 1 3.00


The process of Electro coating has the following sequence of operation.

Pre-treatment-where the metal surface is cleaned I

Electro coating in electro coat bath& ancillary equipment

(Electro coat bath consists of 80-90%de ionized water 10-20% paint solids. The de

ionized water acts as a carrier for the paint solids that are under constant agitation. The

paint solids consist of resin and pigment.)

I Rinsing (During electro coat process paint is applied to a part to be coated at a

controlled film thickness regulated by the voltage applied. Once the coating reaches the

desired thickness the part gets insulated and the coating process slows down. As the

part remains in the bath for a few seconds after the coating before it is lifted liquid paint

clings on to the surface and have to be rinsed off to maintain efficiency and aesthetics.)

I Baking in oven (After rinsing the coated part enters the bake oven. The bake oven cross

links and cures the paint film to assure the maximum performance properties. Baking

time and temperature would differ according to the weight of the coated part on the one

hand and the desired gloss on the other)

4. Raw Materials

The raw materials required for the process are phosphating chemicals for pre-treatment

and coating media. The coat media is epoxy and other related chemicals which are

being supplied by M/s Asian PPG, Chennai who are leading suppliers of these items the

phosphating chemicals can be procured from the local dealers.

4

5. Land and Building

Built up area required -1000 sq.ft .This can be arranged on lease basis. Rent assumed

Rs.5000 and Advance Rs 50000

6. Utilities Power: The total power requirement of the unit will be 52 HP Water: Water requirement is about 500 litres per day (ionized water) which can be purchased Man power: Category Nos Monthly

salary Total

Salary Supervisors 1 7000 7000 Operators 8 5000 40000 Security 1 2000 2000 Total 49000 Add 20%benefits 9800 Total 58800 Annually � Rs.7.06 lakhs 7. Implementation Schedule

If financing arrangements is made available the project can be implemented within three

months period.

8. ASSUMPTIONS

Installed capacity per annum Electro Coating – 1,20,000 sq.mtr. Hinges - 12000 dozens Capacity utilization- Year -1 60% Year -2 70% Year -3 80% Selling price per unit Electro Coating – Rs.70 /Sq.Mtr. Consumables cost at 100% Qty (including

wastage) Rate/kg. Value

(Rs.lakhs) Coating chemicals and 9230.4 kg Rs.200 18.46 Phosphating chemicals 2.40

Total 20.86

5

Power and Fuel-100% (Rs.lakhs) Rs.8.41 lakhs Wages & salaries-100% (Rs.lakhs) Rs.7.06 lakhs Repairs & Maintenance per month Rs.10000/- Depreciation Written down value General & administration Expenses per month Rs.50000/- Interest on term loan and Working capital finance

14% p.a


6

LIST OF MACHINERY SUPPLIERS 1. COATEC INDIA F-79 Industrial Area –Phase 7 Sahibzada Ajit Singh Nagar Chandigarh 160 055 Punjab There is no other Machinery supplier for this project according to the information available. LIST OF RAW MATERIAL SUPPLIERS 1. Chennai Asian PPG Industries Ltd., (Asian Paints India Ltd.) 1/103, Poonamallee High Road, Vanagaram Chennai 600 095.

7

1. COST OF PROJECT [Rs.lakhs] Building (Advance) 0.50 Equipments 24.00 Other Misc. assets 0.50 Pre-Operative expenses 1.50 Working Capital 2.50 29.00 2. MEANS OF FINANCE Capital 11.00 Term Loan 18.00 29.00

8

3. COST OF SERVICE & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Annual Income /Job Work Income Installed Capacity(sq.Metres) 120000 120000 120000 Capacity Utilisation 60% 70% 80% Production Sq. Metres 72000 84000 96000 Rate Per Sq.Metre Rs.70 Annual Income Rs.Lakhs 50.40 58.80 67.20 Expenditures Raw Materials 0.00 0.00 0.00 Consumables 12.52 14.60 16.69 Power 5.05 5.89 6.73 Salaries 7.06 7.41 7.78 Repairs & Maintenance 1.20 1.26 1.32 Depreciation 6.38 4.78 3.59 Admin, & General expenses 6.00 6.30 6.62 Interest on Term Loan 2.52 2.21 1.58 Interest on Working Capital 0.33 0.39 0.45 Total expenses 41.06 42.84 44.76 Profit Before Tax 9.34 15.96 22.44 Provision for tax 3.33 5.70 8.01 Profit After Tax 6.01 10.26 14.43 Add: Depreciation 6.38 4.78 3.59 Cash Accruals 12.39 15.04 18.02

9

4. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 14.43 Income 67.20

21%


83%

Profit after Tax 14.43 Promoters Capital 11.00

131%

10

5. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 7.78 Electricity 16.69 Depreciation 3.59 Admin. & General expenses 6.62 Interest on TL 1.58 Interest on Working Capital 0.45 36.71 Profit Before Tax (P) 22.44

FC x 100 36.71 80 BEL = FC +P 59.15

x 100

x 100


1

ENAMELLED COPPER WIRES

A. INTRODUCTION

The consumption of Enamelled copper wires has been increasing in the country all over

these years due to its extensive usage in electrical industries, automobiles and

electronics industries. These wires find its applications in various area such as motors,

transformers. Starter coils, coils for entertainment electronics and other electrical

equipments. The usage sectors had rapid growth and therefore the demand is further

improving. Considering the growth in this area there is a good scope for new enameled

copper wire manufacturing units to be set up.


Bureau of Indian Standards has prescribed necessary standards for Enamelled copper

wires under IS-4800:1978 (Part1 to 12). The enameled copper wires are normally

available in the range of 26 SWG to 44 SWG.

C. MARKET POTENTIAL The Enamelled copper wire is used in manufacturing of motors, transformers, and

various other electrical and electronic gadgets. The growth of this industrie has direct

relation with the growth of the enameled copper industry.


The installed capacity of the proposed unit is manufacturing of 90 tonnes of Enamelled

Copper Wires per annum .This is based on 300 kgs of Enamelled copper wires per day

of 8 hours working for 300 days in a year.

2




Value (Rs.lakhs)

Enamelling plant – 16 head suitable for 26 SWG to 44 SWG complete with electrical motors, blowers, heater and accessories

2 6.70

Wire drawing M/c. suitable for drawing wires 20 SWG to 50 SWG.

2 2.00

Diamond set dies 2 0.50 Testing equipments – Kelvin bridge- complete with spot galvanometer DC source

1 0.20

Abrashion Test 1 0.10 Pin hole test 1 0.15 High voltage test 1 0.10 Precession balance 1 0.05 Other Misc. tools 0.20


The manufacturing involves the following sequence of operations.

Purchase of Copper wire 20 SWG I

Feeding through fine wire drawing machine to get the reduced size I

Cleaning/picking and passing through the enamelling plant I

Coating of varnish I

Passing through heat drying chambers I

Testing of wire by various testing procedures as is standards. I

Winding and packing in spools 4. Raw Material

The raw materials required for manufacturing enameled copper wire is different gauges

of copper wire available from manufacturers. The enamel varnish and packing materials

are available from dealers.

3

5. Land & Building





salary Total

Salary Supervisors 1 5000 5000 Operators 5 3000 15000 Unskilled 3 2000 6000 Assistants 2 3000 6000 Security 2 2000 4000 Total 36000 Add 20%benefits 7200 Total 43200 Annually � Rs.5.18 lakhs 7. Implementation Schedule


months period.

8. ASSUMPTIONS

Installed capacity per annum Enamelled Copper wire-90 MT Capacity utilization- Year -1 60% Year -2 70% Year -3 80% Selling price per unit Rs.300 000/MT Material cost at 100% Qty (including

wastage ) Rate Value

(Rs.lakhs) Copper 92 Mt 220000/Mt 202.40 Enamel / Varnish 48 Mt 30000/Mt 14.40 Packing material 4.80 Total 221.60

4

Consumables and Packing per annum-at 100% (Rs.lakhs)

Rs.1.20 lakhs

Power and Fuel-100% (Rs.lakhs) Rs.10.07lakhs Wages & salaries-100% (Rs.lakhs) Rs.5.18 lakhs Repairs & Maintenance per month Rs.5000/- Depreciation Straight line Method General & administration Expenses per month Rs.50000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance

14% p.a


5

LIST OF MACHINERY SUPPLIERS 1. Deepak Wire Industries 25, Ram Bagh,

Ratlam. 2. Diamond Cables 15./12-A, Industrial Estate, Cotwu Road, Baroda 390 005. 3. Maihmman Consulting Engineers 209, vithal Vdyog Nagar, Callabh Vidya Nagar 388 122. LIST OF RAW MATERIAL SUPPLIERS 1. Hindustan Copper Limited Khetri 2. Dr.Beek & Co. India Ltd. 67, Advant, 6th floor, 12/A, Madam cama road, (Opp : Mantralaya) Mumbai 400 032. TESTING EQUIPMENTS SUPPLIERS 1. Enamelled Wire test equipments 2nd Building, 3rd floor, Walawaker farm, Station Raod, Pune 411 009. 2. Test Equipment Pvt. Ltd. Katoria Mansion, 152, Dr. A.B Road, Worlinaka, Mumbai 400 018. 3. Automations, Swasthik House 3rd floor, 525, Tulsi Pipe road, Dadar, Mumbai 400 028.

6


7


8


2%


28%


41%

9


FC x 100 14.80 80 BEL = FC +P 21.17

x 100

x 100


1

FLY WHEEL RING GEARS A. INTRODUCTION

Fly Wheel Ring Gear is one of the important components in a vehicle. These starter

Ring Gears are required to transmit power from the starter motor to the engine. Ring

gears are normally press-fitted into the fly wheel.


Fly wheel ring gears are used in all vehicles which are having starter mechanism.

Bureau of Indian Standard has prescribed standards for Flywheel ring ears under IS:

7657 (Part-I) and (Part-II)

C. MARKET POTENTIAL

The products are purchased by original engine and automobile manufacturers as

ancillary components. There is also a large demand from replacement markets. The

demand of automobile and other engines are increasing every day. There is a large

demand for these products in foreign countries also.


The proposed installed capacity of the unit is 90000 pieces of Fly wheel Ring Gears per

annum .This is based on a capacity of 300 pcs. per day of single shift operation, 8 hours

per day, 300 days in a year.




Value (Rs.lakhs)

Rolling Machine 1 1.50 Flame Hardening machine (Heat treatment furnace, Electrically heated with temperature upto 1000° C with 20 KW rating)

1 1.25

Flame Hardening machine (Tempering furnace, Air circulation type -Electrically heated with temperature upto

1 0.90

2

400° C with 3 KW rating) Welding Machines 2 0.30 Automatic Lathes 2 4.00 Gear Hobbing Machine with gear shaper, gear sheath grinder and bevel gear generator.

1 17.70

Testing Instruments and other tools 1 1.07 Bench grinder 1 0.08 Pi1ler drilling machine 1 0.35 Power hacksaw 1 0.50 Universal Milling M/c. 1 2.60


Rectangular steel bars are cut into required lengths and rolled into a circular shape.

The bar is then butt welded at the joint. The dimensions are obtained by facing, turning

and counter boring and finally cutting the required number of teeth in a gear hobbing

machine. The gears are also hardened to specifications.

4. Raw Material

The raw materials required fro the production of Fly wheel ring gears is EN 8 grade

steel. This material can be procured from any reputed dealers of steel.

5. Land & Building


Rs.10,000 and also an advance of Rs.100,000.


Man power: Category Nos. Monthly

salary Total

Salary Manager 1 7000 7000 Supervisors 1 5000 5000 Operators 8 3000 24000

3

Unskilled 8 2000 16000 Assistants 1 3000 3000 Security 2 2000 4000 Total 59000 Add 20%benefits 11800 Total 70800 Annually �� Rs.8.50 lakhs 7. Implementation Schedule If financing arrangements is made available the project can be implemented with in

three months period.

8. ASSUMPTIONS Installed capacity per annum Fly Wheel Ring Gear - 90000 Nos. Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Fly Wheel Ring Gear Rs.250/No. Material cost at 100% Qty(incldg.


(Rs.lakhs) EN-8 Steel 400 MT Rs.36000 144 Consumables and Packing p.a. at 100% (Rs.lakhs) Rs.1.20 lakhs Power -100% (Rs lakhs) Rs.9.67 lakhs Wages & salaries-100% Rs.8.50 lakhs Repairs & Maintenance per month Rs.10000/- Depreciation Written Down value General & administration Expenses per month Rs.50000/- Selling expenses 5% on Sales Interest on term loan and Working capital finance 14% p.a Income tax provision 36% on profit

4

LIST OF MACHINERY SUPPLIERS 1. Orient Machine Tools New 269(old no 130) Linghi Chetty Street Chennai-600 001 2. Quality Machine Tools New 238 Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New 103 Armenian Street Chennai 600 001 5. Machine Centre New 214 linghi chetty Street Chennai 600 001 6. HMT Ltd., No.117, Valluvar Kotam salai Chennai 600 034. LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New 273,Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54, Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006

5

5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003 Tempering /Heat Treatment Furnaces 1. Pyrotherm Engineers 245/2B Vanagaram Road Athipet Chennai-600 058 2. Pyromasters Furnaces Pvt Ltd A-13 SIDCO Industrial Estate Villivakkam Chennai-600 049 3. KSM Laboratory Glass Works 40 NP.Thiru-vi-ka Industrial Estate Chennai-600 032 4. Thermal Systems TS-33 TVK Street Guindy Chennai - 600 032

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity p.a. (No.) 90000 90000 90000 Utilisation 60% 70% 80% Production/Sales p.a. (No.) 54000 63000 72000 Selling Price/ piece (in Rupee) 250 per piece Sales Value 135.00 157.50 180.00 Raw Materials 86.40 100.80 115.20 Consumables 0.72 0.84 0.96 Power 5.80 6.77 7.74 Wages & Salaries 8.50 8.93 9.38 Repairs & Maintenance 1.20 1.26 1.32 Depreciation 8.13 6.09 3.95 Cost of Production 110.75 124.69 138.55 Admin, & General expenses 6.00 6.30 6.62 Selling expenses 6.75 7.88 9.00 Interest on Term Loan 3.15 2.76 1.97 Interest on Working Capital 1.52 1.52 1.52 Total 128.17 143.15 157.66 Profit Before Tax 6.83 14.35 22.34 Provision for tax 2.46 5.17 8.04 Profit After Tax 4.37 9.18 14.30 Add: Depreciation 8.13 6.09 3.95 Cash Accruals 12.50 15.27 18.25

8


8%


54%


102%

9


FC x 100 23.24 80 BEL = FC +P 45.58

x 100

x 100


1

HACKSAW BLADES A. INTRODUCTION

A hacksaw blade is a common cutting tool used in all engineering industries. It is so

popular and essential that the hacksaw blade is required primary to cut all metals and

non-metals. In engineering centres like Chennai, the usage is voluminous and several

small scale units manufacturing hacksaw blades have to cater to the requirements. The

usage is increasing with the growth of industries in all areas.


Bureau of Indian Standards has laid down specifications for Hacksaw Blades as per

standard No: 2594-1963. This can be followed by a unit which is pursuing

manufacturing of this item. Hacksaw blades are specified by the number of teeth per

inch (TPI) based on the pitch of teeth and they are generally of 6” to 12” in overall

length. The power hacksaw blades varies in length from 16” to 20” and also thicker with

longer width.

C. MARKET POTENTIAL

The products to be manufactured belong to the engineering sector and the general




The installed capacity of the proposed unit is manufacturing of 20000 hacksaw blades

per day. On this basis the installed capacity works out to 60 lakhs blades per annum.

This is based on two shift operations per day of 8 hours each.

2




Value (Rs.lakhs)

Heavy duty stamping and cutting press 1 1.70

Straightening Machine with straightening rollers

1 0.90

Universal Milling machine 1 1.60 Notching machine (Hand operate) 1 0.08 Automatic hardening unit with guide roller feeding device

1 0.80

Bench Grinder 1 0.05 Tools, Jigs and Fixtures 0.67 Testing instruments 0.20


The manufacturing involves the following sequence of operations

Purchase of Material (Cold rolled high carbon strips) I

Cutting into required sizes by using cutting off machine I

Milling-Cutting 2 pin holes using Milling machine I

Staggering of teeth by using notching press using jig plates I

Pre heating-Drying I

Salt bathing I

Oil quenching I

Cooling in water I

Saw dusting I

Tempering I

Annealing I

Oil-tank-coating I

Packing-in 10 nos or 12 nos

3

4. Raw Material

The raw materials required for manufacturing Hacksaw blades are cold rolled steel

strips of various thicknesses. The normal thickness is 0.56 mm. The required steel

strips are available from the dealers.

5. Land & Building


Rs.10000 and the advance anticipated is Rs.100000



salary Total

Salary Manager 1 7000 7000 Supervisors 2 5000 10000 Operators 12 3000 36000 Unskilled 6 2000 12000 Assistants 2 3000 6000 Security 2 2000 4000 Total 75000 Add 20%benefits 15000 Total 90000 Annually �� Rs.10.80lakhs 7. Implementation Schedule


months period.

4

8. ASSUMPTIONS Installed capacity per annum Hacksaw Blades – 60 lakh Nos. Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Hacksaw Blades – Rs.1.50/- per piece Material cost at 100% Qty (MT) Rate/MT Value

(Rs.lakhs) Cold Rolled Steel Strips - 0.56 mm thickness

109 Rs.40000 44.00

Consumables required for 1 MT of production – Hacksaw Blade

Qty. Rate/qty. (Rs.)

Value (Rs.)

Barium Chloride 75 kgs Rs.16/ kgs. 1200 Quenching oil 35 ltr. Rs.6/ltr. 210 Packing box 550 Nos. Rs.2.50 1375 Outside Box 27 nos. Rs.18.33 495 Rust Prevention oil 50 ltrs Rs.7.00 350

Total consumable cost per MT of production 3630 Other consumables such as : Printing & Labels, Dies, Cutting oil, Electrical mendor and Saw dust / Cotton waste (cost p.a. in Rs.lakhs)

3.00

Power -100% (Rs lakhs) Rs.2.90 lakhs Wages & salaries-100% Rs.10.80 lakhs Repairs & Maintenance per month Rs.5000/- Depreciation Straight Line Method General & administration Expenses per month Rs.20000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a Income tax provision 36% on profit

5

LIST OF MACHINERY SUPPLIERS 1. Orient Machine Tools New 269(old no 130) Linghi Chetty Street Chennai-600 001 2. Quality Machine Tools New 238 Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New 103 Armenian Street Chennai 600 001 5. Machine Centre New 214 linghi chetty Street Chennai 600 001 LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New 273, Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54, Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006 5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003

6

Tempering /Heat Treatment Furnaces 1. Pyrotherm Engineers 245/2B Vanagaram Road Athipet Chennai-600 058 2. Pyromasters Furnaces Pvt Ltd A-13 SIDCO Industrial Estate Villivakkam Chennai-600 049 3. KSM Laboratory Glass Works 40 NP.Thiru-vi-ka Industrial Estate Chennai-600 032 4. Thermal Systems TS-33 TVK Street Guindy Chennai_600 032

7


8

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity p.a. (No. pieces in lakhs) 60 60 60 Utilisation 60% 70% 80% Production/Sales p.a. (No.pieces in lakhs) 36 42 48 Selling Price/ piece (in Rupee) 1.5 rupees Sales Value 54.00 63.00 72.00 Raw Materials 26.16 30.52 34.88 Consumables 4.18 4.87 5.57 Power 4.84 5.64 6.45 Wages & Salaries 10.80 11.34 11.91 Repairs & Maintenance 0.60 0.63 0.66 Depreciation 0.70 0.70 0.70 Cost of Production 47.28 53.70 60.17 Admin, & General expenses 2.40 2.52 2.65 Selling expenses 1.62 1.89 2.16 Interest on Term Loan 0.63 0.55 0.39 Interest on Working Capital 0.60 0.60 0.60 Total 52.53 59.26 65.97 Profit Before Tax 1.47 3.74 6.03 Provision for tax 0.53 1.35 2.17 Profit After Tax 0.94 2.39 3.86 Add: Depreciation 0.70 0.70 0.70 Cash Accruals 1.64 3.09 4.56

9


5%


51%


78%

10


FC x 100 16.31 80 BEL = FC +P 22.34

x 100

x 100


1

HAND TOOLS A. INTRODUCTION

Hand tools are most commonly used tools. They include Hammers, Spanners, Pliers,

Chisels, centre punches, Vices, Etc. The hand tools are used in workshops and homes

as well.


Among the wide variety of hand tools and small tools, spanners constitute the foremost

category. Spanners are hand tools used for various operations by hand. For fitting

workshop in engineering and automobile workshops these are used frequently. There

are different types of spanners for sizes 6 mm to 17 mm.

Bureau of Indian Standards has prescribed the IS:2028-1991 for Spanners. C. MARKET POTENTIAL















2


The installed capacity of the unit is manufacturing 120 000 spanners per annum. This is

based on a production capacity of 400 sets of spanners per day, in two shifts of 8 hours.

For 300 days in a year.




Value (Rs.lakhs)

Drop Forging Hammer 1 MT with 40 Hp motor 1 6.90 Broaching Machine 7.5 HP 1 5.90 Die Grinding Kit 1 0.20 Double Ended Grinder 1 0.04 Electroplating Equipment 1 1.40 Flexible Shaft Grinder 1 0.04 Hacksaw machine 1 0.22 Hardening Furnace 1 1.20 Lathe-2400 mm bed 1 1.00 Chain Pulley Block 1 0.20 Oil fired Furnace 1 0.45 Pillar Type Drilling Machine 1 0.15 Tempering Furnace 1 0.60 Power Press 100 MT 1 4.00 Shot Blasting Machine 1 1.60 Surface Grinder 1 0.40 Vertical Milling Machine 1 2.30 Hardness Tester 1 0.15 Torque Testing Machine 1 0.30 Tools, Dies and Equipment 0.80 Electrical 2.15


The unit will be purchasing EN-18, EN-47 and EN-50 .The process involves the

following sequence of operations.

Blanking I

Forging

3

I Trimming

I Normalising

I Grinding, Broaching and Straightening

I Hardening and Tempering

I Shot Blasting

I Finishing

I Electroplating

4. Raw Material

The main raw material required for production of Hand tools like spanners are EN-47,

EN-18 and EN-50 Grades of Steel. These are available from regular steel suppliers.

5. Land & Building


Rs.10000 and also an advance of Rs.200,000.

6. Utilities Power:

The total power requirement of the unit will be 60 HP Water: Water is required only for human consumption.


salary Total

Salary Manager 1 7000 7000 Supervisor 1 5000 5000 Skilled 6 3000 18000 Helpers 6 2000 12000 Assistants 1 3000 3000 Security 2 2000 4000 Total 49000 Add 20%benefits 9800 Total 58800 Annually �� Rs.7.06 lakhs

4



months period.

8. ASSUMPTIONS Installed capacity per annum

Spanners120 000 Sets of Spanners

Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Spanners Rs 80.00/Spanner set Material cost at 100% Qty. (inclg.

wastage) Rate/MT

(Rs.) Value

(Rs.lakhs) EN-18,EN-47,EN-50 Steel 96 36000/Mt 34.56 Electro plating materials 9.60

Total 44.16 Consumables per annum-at 100% (Rs.lakhs) Rs.1.20 lakhs Power and Fuel-100% (Rs.lakhs) Rs.13.98 lakhs Wages & salaries -100% Rs.7.92 lakhs Repairs & Maintenance p.m. Rs.2000/- Depreciation Straight line Method General & administration Expenses per month Rs.20000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a. Income tax provision 36% on profit

5

LIST OF MACHINERY SUPPLIERS 1. Orient Machine Tools New No.269 (old No.130) Linghi Chetty Street Chennai-600 001 2. Quality Machine Tools New 238, Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New 103, Armenian Street Chennai 600 001 5. Machine Centre New 214 linghi chetty Street Chennai 600 001. 6. Rattan Hammers (Forging Hammers) No.722, Industrial Area, Ludhiana. 7. New Standard Engineering company (Forging Hammers) Industrial Estate Goregaon Mumbai 400 063. LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New 273,Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54, Sembudoss street Chennai-600 001

6

4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006 5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003. TEMPERING /HEAT TREATMENT FURNACES 1. Pyrotherm Engineers 245/2B Vanagaram Road Athipet Chennai-600 058 2. Pyromasters Furnaces Pvt Ltd A-13 SIDCO Industrial Estate Villivakkam Chennai-600 049 3. KSM Laboratory Glass Works 40 NP.Thiru-vi-ka Industrial Estate Chennai-600 032 4. Thermal Systems TS-33 TVK Street Guindy Chennai-600 032

7


8

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (No.) Spanners 120000 120000 120000 Utilisation 60% 70% 80% Production/Sales (No.) Spanners 72000 84000 96000 Selling Price/piece (in Rupee) Rs.80 per piece Sales Value (Rs.lakhs) 57.60 67.20 76.80 Raw Materials 26.50 30.91 35.33 Consumables 0.72 0.84 0.96 Power 8.39 9.79 11.19 Wages & Salaries 7.92 8.32 8.74 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 3.25 3.25 3.25 Cost of Production 47.02 53.36 59.73 Admin, & General expenses 2.40 2.52 2.65 Selling expenses 1.73 2.02 2.30 Interest on Term Loan 3.15 2.76 1.97 Interest on Working Capital 0.58 0.58 0.58 Total 54.88 61.24 67.23 Profit Before Tax 2.72 5.96 9.57 Provision for tax 0.98 2.15 3.45 Profit After Tax 1.74 3.81 6.12 Add: Depreciation 3.25 3.25 3.25 Cash Accruals 4.99 7.06 9.37

9


8%


30%


46%

10


FC x 100 16.87 80 BEL = FC +P 26.44

x 100

x 100


1

HOSE CLIPS A. INTRODUCTION

Hose clips are used for connecting and tight fixing of hose or hose couplings. These

are metallic tightening band used for a firm hose connection. It gives a guarantee for a

connection and tightening on whole circumference of the hose. For connecting high

pressure hoses two tightening bands next to each other are used.


The hose clips are used in all vehicles engines and machine parts wherever fluid, liquid,

or gas flow is present. Hose clips are available in different dia and length. The popular

varieties are given below:

Hose clip Dia (mm) Length (mm) Length of perforation in mm

Hose clip - 1 15-20 mm 70 40 Hose clip – 1A 20-26 mm 100 40 Hose clip - 2 25-40 mm 140 60 Hose clip - 3 38-55 mm 190 80 Hose clip - 4 50-65 mm 225 80

C. MARKET POTENTIAL












2






The installed capacity proposed is 5000 pieces hose clips per day, 8 hours per shift per

day. For 300 days of working per annum this works out to 15,00,000 pieces.




Fully automatic threading machine with de coiler & automatic cutting

2 4.80

Power Press 5 ton capacity. 1 1.75 Die Set ,Sheet cutting, Spoon,Name. 1 0.20 Die set for Small cap ½ “ to 4 “ clamp

2 0.68

Rounding Attachemnt for ½” to 3” clamp

1 0.18

Rounding Attachment for 3 to 12” clamp

1 0.20

Screw inserting attachment 1 0.10 Misc Tools 0.19 Total 8.10


The manufacturing process of wood screw is as follows:

Purchase of CRCA sheets ↓

Cutting ↓

Pressing in power press and forming band ↓

Welding of screws to band ↓

3

Mounting and shaping – press ↓

Galvanization – Job work.

4. Raw Materials

The raw material required is CRCA (Cold Rolled Annealed) steel sheets. The

requirement is about 38 MT per annum. Besides this screws/nuts have to be bought

out. This is estimated to cost about Re.0.30 per piece. The galvanizing can be done on

job work basis.

5. Land & Building



6. Utilities

Power:


Water:


Man Power:

Category Nos. Monthly Total Salary Salary p.m. Supervisor 1 5000 5000 Skilled workers 2 3000 6000 Helpers 4 2000 8000 Assistants 2 3000 6000 Security 4 2000 8000 -------- 33000 Add: 20% benefits 6600 -------- 39600 -------- Total salary per annum (Rs.lakhs) Rs.4.75 lakhs

4




8. ASSUMPTION

Installed Capacity per annum at100% Hose clips – 15,00,000 piece p.a. Capacity utilization - Year 1 60% - Year 2 70% - Year 3 80% Selling price per unit Hose clips – Rs.3.00/piece

Raw Material required p.a. Qty Rate (Rs.) Value (Rs.lakhs)

CRCA steel sheet (5% wastage) 37.73 MT 33,000/MT 12.45 Nuts/screws 15,00,000 Re.0.30 4.50 Galvanizing (job work) 15,00,000 Re.0.30 4.50

Total 21.45

Consumables cost p.a. at 100% (Rs.lakhs) Rs.1.20 lakhs Power & Fuel at 100% (Rs.lakhs) Rs.1.61 lakhs Wages & Salaries (Rs.lakhs) Rs.4.75 lakhs Repairs & Maintenance per month Rs.2,000 p.m Depreciation Straight Line method Administrative & General expenses p.m. Rs.10,000 Selling expenses 3% Interest on Term loan and Working capital finance

14%

5

LIST OF MACHINERY SUPPLIERS 1. Indian Machine Tools

K-69/B, Bal Udyan Road Uttam Nagar New Delni-110 059

2. Power Hydraulics,

Plot 10-c, 1st Main Road, Thirumalaipriya Nagar, Pudur, Ambattur, Chennai 600 053

3. Krishna Engineering works,

81/2, Guruvappa Cheety Street, Chennai 600 002

4. Orient Machine Tools New 269(old no 130) Linghi Chetty Street Chennai-600 001 5. Quality Machine Tools New 238 Linghi Chetty Strret Chennai 600 001 6. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New 273, Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54, Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006

6

5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003 LIST OF GALVANISERS 1. T.M.Radhakrishnan & Sons

New Noo 28, Ponnapa Chetty Street Park Town Chennai-600 003.

2. Hindusthan Industries No.532, 1-B Vanagaram Road Ambattur Chennai-600053 3. Gulshan Engineers Pvt ltd Kannabiram Chatram Madhavaram Chennai-600 118 4. Prestige Industries No.10, Milk Colony Chennai-600 118

7


8

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (No.) 1500000 1500000 1500000 Utilisation 60% 70% 80% Production/Sales (No.) 900000 1050000 1200000 Selling Price/piece (in Rupee) 3 per piece Sales Value (Rs.lakhs) 27.00 31.50 36.00 Raw Materials 12.87 15.02 17.16 Consumables 0.72 0.84 0.96 Power 0.97 1.13 1.29 Wages & Salaries 4.75 4.99 5.24 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 0.91 0.91 0.91 Cost of Production 20.46 23.14 25.82 Admin, & General expenses 1.20 1.26 1.32 Selling expenses 0.81 0.95 1.08 Interest on Term Loan 0.84 0.74 0.53 Interest on Working Capital 0.28 0.28 0.28 Total 23.59 26.37 29.03 Profit Before Tax 3.41 5.13 6.97 Provision for tax 1.23 1.85 2.51 Profit After Tax 2.18 3.28 4.46 Add: Depreciation 0.91 0.91 0.91 Cash Accruals 3.09 4.19 5.37

9


12%


62%


98%

10


FC x 100 8.26 80 BEL = FC +P 15.23

x 100

x 100


1

KING PINS & SHACKLE PINS A. INTRODUCTION

With the setting up major automobile projects namely Ford Motors, Hyundai Motors,

Hindustan Motors, Mitsuibishi and with expansion plans of Ashok Leyland & TAFE,

Chennai emerges the Detroit of south East Asia. TamilNadu has always been a fore-

runner in the industrial process, both in terms of industrial output and also terms of

encouraging various new large-scale projects. Having recorded an impressive is growth

industry in the post-reform span, it is poised for further industrial development and

expansion. At present the state accounts for over 11-12% of India’s industrial output.

Automobile ancillaries have O.E. Market and Replacement market for all automobile

components.


King Pins are used to connect piston with the connecting rod in any engine. These are

used in automobile engines as well as stationery engines used for power generation or

for lifting water when coupled with water pumps, while shackle pins are used to fit

springs with the shackle brackets in any automobile. Both these items are replaceable

components and are marketed as O.E components as well as spares. The product is

always under rotational motion hence it is subjected to heavy wear and tear

C. MARKET POTENTIAL




demand for these products in foreign countries also. The vehicle production and

population of vehicles on the road have been increasing all over these years.

2


The installed capacity of the unit is 3600 dozens of King pins & shackle pins per annum.

This is based on single shift operations 300 days in a year, 8 hours per shift.

2. Plant and Machinery The following items of equipment are required.


Value (Rs.lakhs)

Turret Lathe 1 1/2 “capacity 1 3.00 Capstan lathe 1 “bar capacity 1 2.50 Centreless grinding machine with capacity to grind upto 11/2 “dia

1 2.90

Salt bath hardening furnace- oil fired 1 1.00 Tempering furnace oil fired 1 0.80 Horizontal milling machine 1 1.60 Hacksaw machine 9” stroke 1 0.50 Bench Grinder with 8’ 1 0.05 Hardness testing Machine 1 0.10 Tools Measuring instruments and equipments 0.55


There are different types of engines as well automobiles. The drawings and

specifications are to be prepared for these products. The process of manufacture is

simple. The pins are turned to size and heat treated. After heat treatment final grinding

is carried out on centre less grinder. The anti rust chemical is applied before storage.

4. Raw Material

The main raw material required is EN-8 and Nickal steel which are available from

manufacturers and dealers.

5. Land & Building



3



salary Total

Salary Manager 1 7000 7000 Supervisors 1 5000 5000 Skilled 4 3000 12000 Unskilled 4 2000 8000 Assistants 1 3000 3000 Security 2 2000 4000 Total 39000 Add 10%benefits 7800 Total 46800 Annually � Rs.5.62 lakhs 7. Implementation Schedule


months period.

4

8. ASSUMPTIONS Installed capacity per annum Kind pins & Shackle pins – 3600 dozens Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Kind pins & Shackle pins – Rs.980/ dozens Material cost at 100% Qty (including


(Rs.lakhs) EN-8 Steel and annealed nickel steel bars

36 Mts Rs.36000 12.96

Consumables and Packing p.a. at 100% (Rs.lakhs)

Rs.1.20 lakhs

Power and Fuel-100%-Rs lakhs Fuel : Furnace oil - 3000 ltrs. @Rs.12/ltr. Hard Coke - 3 MT @Rs.1,000/Mt Quenching oil – 40 ltr. @ Rs.50/ltr.

Power Rs.2.42 lakhs

Wages & salaries-100% Rs.5.62 lakhs Repairs & Maintenance per month Rs.2000/- Depreciation Straight Line Method General & administration Expenses per month Rs.10000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance

14% p.a


5

LIST OF MACHINERY SUPPLIERS Machine Tools 1. Quality Machine Tools New No.238 Linghi Chetty Strret Chennai 600 001 2. Gujrat Machine Tools New No.279, Linghi Chetty Street Chennai 600 001 3. Premier Machine Tools New No.103 Armenian Street Chennai 600 001 4. Machine Centre New No.214 linghi chetty Street Chennai 600 001 Tempering /Heat Treatment Furnaces 1. Pyrotherm Engineers 245/2B Vanagaram Road Athipet Chennai-600 058 2. Pyromasters Furnaces Pvt Ltd A-13 SIDCO Industrial Estate Villivakkam Chennai-600 049 3. KSM Laboratory Glass Works 40 NP.Thiru-vi-ka Industrial Estate Chennai-600 032 4. Thermal Systems TS-33 TVK Street Guindy Chennai_600 032

6

LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New No.273, Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54 Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7.Wallace garden Second Street Chennai-600 006 5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003

7


8

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity p.a. (No. Dozen) 3600 3600 3600 Utilisation 60% 70% 80% Production/Sales p.a. (No. Dozen) 2160 2520 2880 Selling Price/Dozen (in Rupee) 980 per dozen Sales Value 21.17 24.70 28.22 Raw Materials 7.78 9.07 10.37 Consumables 0.72 0.84 0.96 Power 1.45 1.69 1.94 Wages & Salaries 5.62 5.90 6.20 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 1.45 1.45 1.45 Cost of Production 17.26 19.20 21.18 Admin, & General expenses 1.20 1.26 1.32 Selling expenses 0.64 0.74 0.85 Interest on Term Loan 1.37 1.19 0.85 Interest on Working Capital 0.21 0.21 0.21 Total 20.68 22.60 24.41 Profit Before Tax 0.49 2.10 3.81 Provision for tax 0.17 0.75 1.36 Profit After Tax 0.32 1.35 2.45 Add: Depreciation 1.45 1.45 1.45 Cash Accruals 1.77 2.80 3.90

9


9%


28%


39%

10


FC x 100 10.08 80 BEL = FC +P 13.89

x 100

x 100


1

NON-STICK COOKWARES

A. INTRODUCTION

Non-stick cooking vessels and utensils find wide applications in homes and hotels.

They are now widely used by all. The popular varieties are Tawas, Frying Pans,

Casserols, etc. These are made of Aluminium sheets and coated with Poly Tetra Fluoro

Etyelene (PTFE). They are popularly known as Teflon coated cooking wares. They

have several advantages over conventional cook wares such as lesser usage of

cooking medium like edible oil and lesser spoilage of cooked material by over heating,

burning, etc.


The non-stick cookware comes under the standards of Bureau Of India Standards. BIS

has stipulated the standards for Non-stick un-reinforced Plastic coatings on Domestic

cooking Utensils (Amendment 1.7 Reaffirmed-1990) under IS-9730-1981.The basic raw

material namely Aluminium circles have to be conforming to IS-21. Necessary Testing

methods such as Salt water corrosion resistance Test, Thickness of Coating, Non-stick

quality, adhesive test and Dimension of utensil Test have to be carried out.

C. MARKET POTENTIAL

The demand for housing is increasing as there is a heavy backlog of houses to be

constructed in India and there is a scope of adding 50 lakhs houses every year. This

allows a big demand for Household utensils like Non-stick cook wares.

The National Buildings Organisation (NBO) had estimated the urban housing shortage

in 1991 at 8.23 million dwelling units. Keeping in view trends from 1961-1991 in the

nature of additionality in housing stock, the overall urban housing shortage of 7.57

million DUs was projected for 1997. As per 1991 census of India projections, out of 22.9

million housing shortage, 8.23 million DUs was in urban areas while 14.67 million DUs

in rural areas. With the additionality of 16.5 million in housing stock in five years, the net

2

shortage was estimated to be 6.64 million DUs by 2001. The new housing demand

during the period 1997-2002 has been gauged as 8.8 million dwelling units.

It is estimated that the urban housing sector alone would require a total investment of

Rs.1,21,371 crores during the next five years to meet the requirement of housing

shortage of 75.7 lakhs DUs, upgradation of 3.2 lakh semi-pucca EWS units and the

additional construction requirement of 86.7 lakh units. The total fund requirement

including rural housing need would be 1,50,000 crores whereas the total availability is

Rs.52,000 crores only from the formal sector (Rs.34,000 crores for urban and

Rs.18,000 crores for rural housing).


The installed capacity of the proposed unit is manufacturing of 120000 non-stick cook

wares per annum (aluminium vessel of 8” dia and 2” thickness). This is based on double

shift operation per day for 16 hours, for 300 days in a year.




Value (Rs.lakhs)

Continuous baking oven for base coat with digital temperature control upto 150° C (6 m x 6 m x 4m) size.

1 4.00

Continuous baking oven for top coat with digital temperature control upto 500° C (6 m x 6 m x 4m) size. Drilling machine ½”

1 5.00

Buffing machine CI stand 1500.rpm 1 0.20 Air compressor cylinders with spray gun 1 0.30 Testing equipments-Corrosion cabinet for salt spray, Thickness Micrometer, Scrubbing Tester, Bending barrel for adhesive Test.

1 1.00

Weighing Machine 1 0.20 Other miscellaneous tools, accessories 1.30

Total 12.00

3


The manufacturing of Non-stick cook ware involves the following sequence of

operations.

Purchase of aluminium utensils of good quality

I Sand blasting of utensils before coating

I Spraying with base coat of PTFE and then baking in primer oven for 10 minutes at 100

to120° C. I

Cooling down utensil to normal level temperature I

Spraying with top coat of PTFE and baking in oven for 10 minutes at 400 to 420°C. I

Finishing outside of the utensil by buffing and riveting bracket for handle by riveting machine

I Testing the utensils

I Stamping utensils with brand names, nominal thickness, at the base of the utensil.

I Cleaning with cotton cloth, and pack in boxes along with instruction booklet, handle

scrubber, spatula I

Despatching 4. Raw Material

The raw materials required for manufacturing of non-stick cookware are Aluminum

utensils PTFE coating liquid, Bakelite handles, Brackets, SS screws, Aluminum Rivets,

Wooden spatula, and Packing material. These are available from dealers.

5. Land & Building


Rs.25000 and also an advance of Rs.125 000.

6. Utilities Power:


4

Water:



salary Total

Salary mnager 1 7000 7000 Supervisors 2 5000 10000 Operators 6 3000 18000 Unskilled 4 2000 8000 Assistants 2 3000 6000 Security 2 2000 4000 Total 53000 Add 20%benefits 10600 Total 63600 Annually � Rs.7.63 lakhs 7. Implementation Schedule


months period.

8. ASSUMPTIONS Installed capacity per annum Non Stick Cookware 120000 Nos Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Non Stick Cookware Rs.150.00 /piece Material cost at 100% Qty required

p.a. Rate/MT

(Rs.) Value

(Rs.lakhs) Aluminium Vessels 120000 nos 37/Piece 44.40 PTFE Coating Liquid 4200 Kgs 850/Kg 35.70 Bakelite handles 72000 nos 15/pc 10.80 Brackets /Handles 108000 nos 8/pc 8.64 SS Screws 0.36 Aluminium Rivets 0.24 Wooden Spatula 120000 nos 5/pc 6.00 Packing material 120000nos 15/pc 18.00

Total 124.14

5

Consumables per annum-at 100% (Rs.lakhs) Rs.1.20 lakhs Power and Fuel-100% (Rs.lakhs) Rs.2.42 lakhs Wages & salaries -100% (Rs.) Rs.7.63 lakhs Repairs & Maintenance- p.m. Rs.5000/- Depreciation Straight Line Method General & administration Expenses per month Rs.50000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a. Income tax provision 36% on profit LIST OF MACHINERY SUPPLIERS 1. THERELEK Furnaces Pvt ltd A-131 road no 123 Wagle Industrial estate Plot no.4 Thane 400604 2. High Temp Furnaces ltd IC-2nd Phase Peenya Indutrial Estate Bangalore-560 058 3. Johind Furnaces Pvt ltd 248-3rd cross -8th Main road 3rd Phase Peenya Industrial estate Bangalore-560058 LIST OF RAW MATERIAL SUPPLIERS 1. PTFE Coating Material Dupont India Ltd 90.R.K.Salai-8th Street Chennai-600 004 2. E.I.Depont India Ltd. 62/63, Abiramapuram, C.P. Ramasamy Iyer Road, Chennai 600 008. Aluminium utensils are available from local manufacturers in Chennai and other places.

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (Nos.) Non-Stick cook ware 120000 120000 120000 Utilisation 60% 70% 80% Production/Sales (Nos.) Staple pins 72000 84000 96000 Selling Price/piece (in Rupee) 150 per piece Sales Value (Rs.lakhs) 108.00 126.00 144.00 Raw Materials 74.48 86.90 99.31 Consumables 0.72 0.84 0.96 Power 1.45 1.69 1.94 Wages & Salaries 7.63 8.01 8.41 Repairs & Maintenance 0.60 0.63 0.66 Depreciation 1.35 1.35 1.35 Cost of Production 86.23 99.42 112.63 Admin, & General expenses 6.00 6.30 6.62 Selling expenses 3.24 3.78 4.32 Interest on Term Loan 1.26 1.10 0.79 Interest on Working Capital 1.25 1.25 1.25 Total 97.98 111.85 125.61 Profit Before Tax 10.02 14.15 18.39 Provision for tax 3.61 5.09 6.62 Profit After Tax 6.41 9.06 11.77 Add: Depreciation 1.35 1.35 1.35 Cash Accruals 7.76 10.41 13.12

8


8%


74%


123%

9


FC x 100 17.83 80 BEL = FC +P 36.22

x 100

x 100


1

PAPER PINS-BELL PINS

A. INTRODUCTION

One of the most widely used office stationery is Bell pins & Paper pins. This is widely

consumed in offices, schools, industries and households. The demand is always

growing for this product as there is no other substitute for this product.


Paper pins are made of Mild steel wires of 20-22 Gauge. It is pointed at one edge and

the other end is round head. The pins are tinned or plated to make them rust proof.

The pins shall be sufficiently strong and shall not bend in use. The pins shall be clean

and bright. For this nickel plating is done. The paper pins are available in packing of 25

gms, 100 gms, 200 gms and 400 gms.

C. MARKET POTENTIAL

The number of commercial organizations and industries are increasing year after year.

The globalization and liberalization of industry and trade have also given birth to various

commercial establishments and this provides ample scope for units manufacturing office

stationery items. The growth of these items will be consistent.


The installed capacity of the proposed unit is manufacturing of 144 Tonnes (360000

boxes of 400 grams each) per annum .This is based on single shift of 8 hours working

per day for 300 days in a year.

2




Value (Rs.Lakhs)

Automatic paper Pin making machine capacity 200-250 pcs per minute

2 2.80

Nickel Plating unit 1 1.00 Miscellaneous tools 1 0.20


The manufacturing of Paper pins involves the following sequence of operations.

Feeding of Hard drawn bright wire of suitable gauge to automatic paper pin making machine

I Forming the paper pins in the machine

I Pickling and cleaning the pins in a plastic container

I Plating with Nickel in plating equipment

I Drying the plated pins in a drying drum

I Packing in cartons and despatching

4. Raw Material

The raw materials required for manufacturing Paper pins are Hard drawn Bright Wire

Rods of 20-22 SWG. These are available from dealers. The Nickel plating materials are

also available from the local dealers.

5. Land & Building


Rs.5000 and also an advance of Rs.50 000.

6. Utilities Power: The total power requirement of the unit will be 5 HP

3

Water: Water is required only for human consumption.


salary Total

Salary Supervisors 1 5000 5000 Operators 4 3000 12000 Unskilled 4 2000 8000 Assistants 2 3000 6000 Security 2 2000 4000 Total 35000 Add 20%benefits 7000 Total 42000 Annually �� Rs.5.04 lakhs 7. Implementation Schedule


months period.

8. ASSUMPTIONS

Installed capacity per annum Paper Pins-144 Mt Capacity utilization- Year -1 60% Year -2 70% Year -3 80% Selling price per unit Rs.45 000/Mt Material cost at 100% Qty (including

wastage ) Rate (Rs.) Value

(Rs.lakhs) Hard Drawn Bright wire rods-20-22 SWG

151 Mt 25000/Mt 37.75

Nickel Plating For 144 Mt 5000/Mt 7.20 Consumables and Packing per annum-at 100% (Rs.lakhs)

Rs.1.20 lakhs

Power and Fuel-100% (Rs.lakhs) Rs.0.41 lakhs Wages & salaries-100% (Rs.lakhs) Rs.5.04 lakhs Repairs & Maintenance per month Rs.2000/- Depreciation Straight line Method General & administration Expenses per month Rs.10000/- Selling expenses 3% on Sales Interest on term loan &Working capital finance 14% p.a Income tax provision 36% on profit

4

LIST OF MACHINERY SUPPLIERS 1. A.M.I.Machine Tools 20 Ambalal Doshi marg(Hammam Street) Fort Mumbai-400 023 2. K.B.Machine Factory Sultan Wind Road Amritsar. 3. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 4. Ajith Wire Products No.41, Gokal Ka Bagh (New 100 feet Road) East Mohan Nagar, Amritsar 5. S.B. Machine Toosl 23/4, Street – 11, Ananth Prabat Industrial area, New Delhi 110 005. LIST OF RAW MATERIAL SUPPLIERS 1. Matchless Wire Products 1/9-D TR Street Kondithope Chennai-600 001 2. Decan Wires & Weldings Pvt. Ltd. 18, Shanthappa Lane S.P.Road, II – Cross Bangalore 560 02. 3. Swill Ltd. 18, Kandi chetty Street, Chennai 600 001. 4. Wire & Wire Products New No.26, Vepery High road, Perimet, Chenni 600 023. 5. Standard Wire Products 145/219, SIDCO Industrial Estate, Ambatture, Chennai 600 098.

5


6

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity p.a. (MT) 144 144 144 Utilisation 60% 70% 80% Production/Sales p.a. (MT) 86 101 115 Selling Price/ MT (in Rupee) 45,000 per MT Sales Value (Rs.lakhs) 38.70 45.45 51.75 Raw Materials 22.65 26.43 30.20 Nickel Plating 4.32 5.04 5.76 Consumables 0.72 0.84 0.96 Power 0.25 0.29 0.33 Wages & Salaries 5.04 5.29 5.55 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 0.70 0.70 0.70 Cost of Production 33.92 38.84 43.76 Admin, & General expenses 1.20 1.26 1.32 Selling expenses 1.16 1.36 1.55 Interest on Term Loan 0.63 0.55 0.39 Interest on Working Capital 0.43 0.43 0.43 Total 37.34 42.44 47.45 Profit Before Tax 1.36 3.01 4.30 Provision for tax 0.49 1.08 1.55 Profit After Tax 0.87 1.93 2.75 Add: Depreciation 0.70 0.70 0.70 Cash Accruals 1.57 2.63 3.45

7


5%


43%


65%

8


FC x 100 8.22 80 BEL = FC +P 12.52

x 100

x 100


1

PILFER PROOF CAPS A. INTRODUCTION

Pilfer Proof caps are being used in Pharmaceuticals, Chemicals, Food industries and

Distilleries as Glass bottle closures. The main consumption is from distilleries. The

consumption is increasing with the increase in standard of living of the people.


Pilfer Proof caps are meant to provide to the contents in a container protection against

substitution, adulteration or pilfering. Once the PP cap is fixed on the package it is

ordinarily not possible to tamper with the contents of the package without destroying the

special device in the closure which is intended to provide such protection. The roll seal

aluminium closure is most extensively used cap fitted on the glass bottles containing the

products such as liquor, pharmaceuticals, chemicals, syrups and squashes.

Bureau of Indian Standards have not prescribed any standards .The PP caps

manufactured should conform to the requirement of the customer with reference to the

sizes, designs, standards/specifications

C. MARKET POTENTIAL

The market demand for PP caps is increasing with the overall development of the

industries and general standard of living of the people. PP caps are used as a cover for

mainly glass containers. The glass bottles are used in milk packaging, pharmaceuticals,

breweries, oils and cosmetics and soft drinks industry. The main use pattern of glass

bottles in various areas is as follows

Milk schemes 15%

Pharmaceuticals 25%

Breweries 30%

Oils & cosmetics, Food 16%

Soft drinks industry 14%

The consumption of PP caps is increasing as the consumption of theses usage sector is

increasing year after year.

2


The proposed machine would work for single shift a day for 300 days. The total installed

capacity of the unit is 100 000 PP caps per day. On this basis the installed capacity will

be 300 lakhs PP caps per annum.




Value (Rs. lakhs)

32 Tonne capacity un-geared fixed stroke, fixed inclined, power press, fitted with pneumatic friction clutch and brake, one shot lubrication device and suitable electrical

1 2.75

Multi spindle knurling, beading machine complete with electricals and cap feeder device

1 1.96

Three cavity die set suitable for 28 mm PP caps die comprising diagonal pillar set with feeder plate and other standard accessories

1 0.70

Roll feed attachment for automatic strip feeding up to 0.3mm thickness and width 175 mm with standard accessories

1 0.26

Rotary wads assembling machine complete with suitable electricals and digital counter. Machine synchronized with knurling machine

1 2.55

Shearing machine pedal operated with strip collection tray 1 0.26 Ring separator sorting drum for scrap rings with electricals 1 0.26 Inspection conveyor 1 0.35 Big step conveyor and silo 1 0.55 Small step conveyor 1 0.45 Cap sealing machine pedal operated for testing caps 1 0.26 Electrical control Panel with sensor 1 1.20 1 HP blower with electricals & pipe synchronization 1 0.11 Testing Instruments &Misc. Tools 0.54

Total 12.00

3


The manufacturing involves the following process

Printing the desired design on aluminium sheets I

Blanking and drawing cap on the punching machine by fitting the multiple die for a particular size

I Finishing the cap by giving final shape which gives knurling, grooving perforation of the

beading I

Fitting circular washers in the cap manually wherever required I

Packing and Despatching 4. Raw Material

The raw materials required for manufacturing aluminium PP caps is 33 or 34 Gauge of

hard Aluminium sheets. This material can be procured from any reputed dealers of

Aluminium sheets. The other consumables required are PVC coated Wads which are

available in all cities. Printing can be done on job work basis.

5. Land & Building




Man power: Category Nos Monthly salary Total Salary Supervisors 1 5000 5000 Operators 3 3000 9000 Unskilled 2 2000 4000 Assistants 1 3000 3000 Security 2 2000 4000 Total 25000 Add 20%benefits 5000 Total 30000 Annually � Rs.3.60 lakhs

4



months period.

8. ASSUMPTIONS Installed capacity per annum

Pilfer Proof Caps 180 Lakhs Nos

Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Pilfer Proof Caps Re.0.35 per piece Material cost at 100% Qty. (inclg.

wastage) Rate/MT (Rs.)

Value (Rs.lakhs)

Half Hard Aluminium Sheets 57.6 Mt 120000MT 55.87 Printing 1.20 PVC Coated Wads 3.00 Packing cost 1.20

Total 61.27 Consumables per annum-at 100% (Rs.lakhs) Included in materials Power and Fuel-100% (Rs.lakhs) Rs.1.62 lakhs Wages & salaries -100% Rs.3.60 lakhs Repairs & Maintenance p.m. Rs10000/- Depreciation Written Down Value

Method General & administration Expenses per month Rs.50000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance

14% p.a.


5

LIST OF MACHINERY SUPPLIERS 1. Narendra Press-tech pvt ltd P.P.26,27 & 9/97(V) Lane no.10 Behind Police Station Anand Prabhat Industrial Estate New delhi-110 005 2. Advance Packaging 10/65 Industrial Area Kirti nagar New Delhi-110 015 LIST OF RAW MATERIAL SUPPLIERS 1. Premier Metal engineering Corporation JVL Towers 117, Nelson Manikem Road Chennai-600 029 2. Southern Aluminium Company New No.22, Mooker Nallamuthu Street Chennai-600 001 3. Zenith Traders New No.62, Nynuyappa naicken street Chennai-600 003 4. Tamilnadu Aluminium Company 44, basin Bridge Road Mint Chennai-600 025

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (lakhs) 300 300 300 Utilisation 60% 70% 80% Production/Sales p.a. (lakhs) 180 210 240 Selling Price/ lakh caps (Rs.lakhs) 0.35 lakh Sales Value (Rs.lakhs) 63.00 73.50 84.00 Raw Materials (Including consumables) 36.76 42.89 49.02 Power 0.97 1.13 1.29 Wages & Salaries 3.60 3.78 3.97 Repairs & Maintenance 1.20 1.26 1.32 Depreciation 3.38 2.53 1.52 Cost of Production 45.91 51.59 57.12 Admin, & General expenses 6.00 6.30 6.62 Selling expenses 1.89 2.21 2.52 Interest on Term Loan 1.26 1.10 0.79 Interest on Working Capital 0.67 0.67 0.67 Total 55.73 61.87 67.72 Profit Before Tax 7.27 11.63 16.28 Provision for tax 2.60 4.15 5.81 Profit After Tax 4.67 7.48 10.47 Add: Depreciation 3.38 2.53 1.52 Cash Accruals 8.05 10.01 11.99

8


12%


85%


148%

9


FC x 100 14.22 80 BEL = FC +P 30.50

x 100

x 100


1

SCREWS, NUTS AND KNOBS A. INTRODUCTION Nuts Screws and Knobs are small components which find wide applications in all

areas of engineering. Such components are small fasteners which are required in

larger quantities. They are used in al domestic gadgets, machines, instruments,

electrical appliances and machines. The products can be a manufactured by

automatic lathes and other machines.


Depending upon the usage of screws, nuts and knobs threading lengths are

required. They are used in all machines, equipments and various electrical and

mechanical gadgets.

C. MARKET POTENTIAL

The product to be manufactured belongs to the engineering sector and the

general engineering sector has been growing well all these years at faster rate.

There is continuous demand for this product as it is consumed in all engineering

workshops.

A strong engineering base exists in the state of Tamilnadu involving products

ranging from automobiles, bicycles, castings and forgings, to textile machines,

electrical and non-electrical machinery, pumps and transportation equipment.

Engineering ancillary industries are concentrated in Chennai, Coimbatore,

Salem, etc. The exports of engineering products from Tamil Nadu is around

Rs.14.50 billion (US $ 320 million) of which automobile ancillaries along

contribute around US $ 150 million. It is an established fact that the automobile

industry in the state accounts for nearly 50% of the All India export market. The

strong engineering base consists of a network of nearly 3,000 units, employing a

skilled workforce of more than 2.5 lakh, making high quality inputs such as

castings and forgings and a wide variety of ancillary products. Intensive efforts

are being made to boost further development of this industry.

2


The installed capacity of the proposed unit is manufacturing of 45 000 Gross

Screws per annum. This is based on single shift basis 300 days, 16 hours per

shift. This works out to 6480000 pieces per annum (Average Weight Taken-20

grams-Dia ½ “ Length-1 ½”-Total Weight-129.60 Mt)




Value (Rs lakhs)

Double stroke Heading machine

1 1.60

High speed Screw Heads slotting Machine

1 0.80

Thread Rolling machine 1 1.00 Annealing machine 1 1.60 Nickel Plating 1 1.00 Misc Tools 0.25 Other equipments 0.35 Total 6.00 3. Manufacturing Process The manufacturing involves the following sequence of operations

Purchase of M S Wires/ coils I

Cleaning and feeding to Header Machines I

Thread Rolling I

Annealing I

Nickel plating I

Inspection and Packing

3

4. Raw Material The raw materials required for manufacturing Screws are M.S.Wire Bright 3 to

14 SWG in rod form or in coil form. .Polishing materials and packing materials

are also required. These are available from standard manufacturers and dealers.

5. Land & Building


Rs.5000 and the advance anticipated is Rs.50000



salary Total

Salary Supervisor 1 5000 5000 Operators 4 3000 12000 Unskilled 4 2000 8000 Assistants 1 3000 3000 Security 2 2000 4000 Total 32000 Add 20%benefits 6400 Total 38400 Annually � Rs 4.61 lakhs 7. Implementation Schedule If financing arrangement is made available the project can be implemented within

three months period.

4

8. ASSUMPTIONS Installed Capacity per annum at100%

Screws, Nuts and Knobs – 6480 000 pieces p.a. ( Equivalent to 129.60 Mts )

Capacity utilization - Year 1 60% - Year 2 70% - Year 3 80% Selling price per unit Screws, Nuts and Knobs –Rs.50000 per Mt Raw Material Qty (MT) Rate/MT Value

(Rs.lakhs) MS Wire (including 5% wastage) 136.16 24000 32.68 Nickel 36.16 5000 6.81

Total 39.49

Consumables cost p.a. at 100% (Rs.lakhs) Rs.1.20 lakhs Power & Fuel at 100% (Rs.lakhs) Rs.0.81 lakh Wages & Salaries (Rs.lakhs) Rs.4.61 lakhs Repairs & Maintenance per month Rs.2,000 p.m Depreciation Straight Line method Administrative & General expenses p.m. Rs.5,000 Selling expenses 3% Interest on Term loan and Working capital finance

14%

5

LIST OF MACHINERY SUPPLIERS 1. A.M.I.Machine Tools 20. Ambalal Doshi Marg ,(Hammam Street) Fort Mumbai-400 023 2. Quality Machine Tools New 238 Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New 103 Armenian Street Chennai 600 001 5. Machine Centre New 214 linghi chetty Street Chennai 600 001 LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New 273, Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54 Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006 5. P.K.Vaduvammal No.97, Rasappa Chetty Street Chennai-600 003

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (MT) 129.60 129.60 129.60 Utilisation 60% 70% 80% Production/Sales (MT) 77.76 90.72 103.68 Selling Price/MT (in Rupee) 50,000 per MT Sales Value (Rs.lakhs) 38.88 45.36 51.84 Raw Materials 23.69 27.64 31.59 Consumables 0.72 0.84 0.96 Power 0.49 0.57 0.65 Wages & Salaries 4.61 4.84 5.08 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 0.70 0.70 0.70 Cost of Production 30.45 34.84 39.24 Admin, & General expenses 1.20 1.26 1.32 Selling expenses 1.17 1.36 1.56 Interest on Term Loan 0.63 0.55 0.39 Interest on Working Capital 0.43 0.43 0.43 Total 33.88 38.44 42.94 Profit Before Tax 5.00 6.92 8.90 Provision for tax 1.80 2.49 3.20 Profit After Tax 3.20 4.43 5.70 Add: Depreciation 0.70 0.70 0.70 Cash Accruals 3.90 5.13 6.40

8


11%


84%


144%

9


FC x 100 7.75 80 BEL = FC +P 16.65

x 100

x 100


1

SLOTTED ANGLES A. INTRODUCTION

Slotted Angles have several advantages over conventional materials like wooden

materials as the same can be dismantled and re-assembled according to convenience.

Storage racks, tables, boards, frames etc can be assembled easily within shortest time

with slotted angles. They are widely used in offices, industries, storage rooms, house

holds. The consumption is increasing with the increase in standard of living of the

people.

B. PRODUCT USES AND SPECIFICATIONS Bureau of Indian standards has specified IS:513 specifications for Slotted angles. C. MARKET POTENTIAL




industries are concentrated in Chennai (Madras), Coimbatore, Salem, etc. The exports

of engineering products from Tamil Nadu is around Rs.14.50 billion (US $ 320 million) of







The market demand for slotted angles is increasing with the overall development of the

industries and general standard of living of the people. There is tremendous for these

items in various industries as the volume materials handled by the industries are

increasing year after year. The number of industries which are being established due to

2

globalization and liberalization has been increasing and there is sufficient scope for new

entrants to venture into this line.


The proposed machine would work for single shift of 8 hours a day for 300 days. The

total installed capacity of the unit is estimated at 600 000 Running feet of slotted angles

of 15-SWG (40 mm x 40 mm) and 600 000 Running feet of slotted angles of 14-SWG

(60 mm x 40 mm)




Value (Rs.lakhs)

Automatic Guillotine Shearing Machine with sheet feeding attachment, like ball rollers, fixture for setting-12 feet bed length

1 10.00

Hydraulic press brake for sheet bending 1 6.00 Lathe 8 feet 1 3.00 Air compressor with airlines control and shot blasting chambers

1 8.00

Double Ended Bench Grinder with stand 1 0.10 Pillar drilling machine 1 0.20 Pneumatic Hydraulic press for punching with accessories

1 4.50

Portable crane 1 0.20 Spray painting booth with all accessories 1 0.10 Trolleys, Tools and dies 1 0.50

Total 32.60 3. Manufacturing Process The manufacturing process involves the following sequence of operations:

Purchase of Mild steel cold rolled sheets of thickness 14G/15G I

Shearing of sheets in Guillotine to required lengths and sizes I

3

Punching holes and slots by Power press I

Feeding punched strips to Press brake for bending to required shapes by using bending dies

I Feeding to Shot blasting chamber

I Spray painting

I Placing in Heating oven

I Cooling, Packing to avoid scratches

I Dispatching

4. Raw Material

The raw materials required for the production of Slotted angle is Mild Steel Hot rolled

sheets (HR Sheets) of 14 G and 15 G. This material can be procured from any reputed

dealers of steel. The other consumables required are steel shots for shot blasting,

Paints ,varnishes for coating, Packing materials for packing.

5. Land & Building



6. Utilities

Power:

The total power requirement of the unit will be 80 HP Water:



salary Total

Salary Supervisors 1 5000 5000 Operators 4 3000 12000 Unskilled 5 2000 10000 Assistants 2 3000 6000

4

Security 2 2000 4000 Total 37000 Add 20%benefits 7400 Total 44400 Annually � Rs.5.33 lakhs 7. Implementation Schedule


months period.

8.ASSUMPTIONS Installed capacity per annum

Slotted angles 15 SWG- 600 000 Running Feet

Slotted angles 14 SWG- 600 000 Running Feet Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Slotted angles15-SWG-Rs 116.00 per Running

Foot Slotted angles 14-SWG-Rs 23.00 per Running Foot Slotted angles 14-SWG-Rs 23.00 per Running Foot Material cost at 100% Qty. (inclg.

wastage) Rate/MT (Rs.)

Value (Rs.lakhs)

M.S.Steel Hot Rolled sheets 14 SWG & 15 SWG

522.90 28700/MT 150.07

Steel Shots for Shot blasting 1.20 Packing Materials 2.40 Paints, Varnishes &chemicals 8.40

Total 162.07 Consumables per annum-at 100% (Rs.lakhs) Rs.1.20 lakhs Power and Fuel-100% (Rs.lakhs) Rs.6.43 lakhs Wages & salaries -100% Rs.4.88 lakhs Repairs & Maintenance p.m. Rs.5000/- Depreciation Straight line Method General & administration Expenses per month Rs.80000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance

14% p.a.


5

LIST OF MACHINERY SUPPLIERS 1. Orient Machine Tools New No.269 (old No.130) Linghi Chetty Street Chennai-600 001 2. Quality Machine Tools New 238, Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New 103, Armenian Street Chennai 600 001 5. Machine Centre New 214 linghi chetty Street Chennai 600 001 LIST OF RAW MATERIAL SUPPLIERS 1. Jain Ispat 70, Sembudoss Street Chennai-600 001 2. Abdul Khader S.M New No.3/59, Mannadi Street, Chennai-600 001 3. Jamal Bros New No.98, Rasappa Chetty Street Chennai-600 003

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (rft.) -15 SWG - 40x40 mm 600000 600000 600000 -14 SWG - 60x40 mm 600000 600000 600000 Utilisation 60% 70% 80% Production/Sales (No.) -15 SWG - 40x40 mm 360000 420000 480000 -14 SWG - 60x40 mm 360000 420000 480000 Selling Price/rft. (in Rupees) -15 SWG - 40x40 mm Rs.16 -14 SWG - 60x40 mm Rs.23 Sales Value (Rs.lakhs) -15 SWG - 40x40 mm 57.60 67.20 76.80 -14 SWG - 60x40 mm 82.80 96.60 110.40 Total sales value 140.40 163.80 187.20 Raw Materials 97.24 113.45 129.66 Consumables 0.72 0.84 0.96 Power 3.86 4.51 5.15 Wages & Salaries 4.88 5.12 5.38 Repairs & Maintenance 0.60 0.63 0.66 Depreciation 3.90 3.90 3.90 Cost of Production 111.20 128.45 145.71 Admin, & General expenses 9.60 10.08 10.58 Selling expenses 4.21 4.91 5.62 Interest on Term Loan 3.78 3.31 2.36 Interest on Working Capital 1.62 1.62 1.62 Total 130.41 148.37 165.89 Profit Before Tax 9.99 15.43 21.31 Provision for tax 3.60 5.55 7.67 Profit After Tax 6.39 9.88 13.64 Add: Depreciation 3.90 3.90 3.90 Cash Accruals 10.29 13.78 17.54

8


7%


44%


71%

9


FC x 100 22.88 80 BEL = FC +P 44.19

x 100

x 100


1

STAINLESS STEEL CUTLERY A. INTRODUCTION

Stainless steel Spoons, Forks and Stainless steel knives are very commonly used items

in households and restaurants. The usage of these items were restricted to a few hotels

in the past. But, now a days these items are used in almost all hotels. With the growth

of standard of living the consumption of these are increasing day by day.


Bureau of Indian Standards has prescribed the following standards for the following

items of Stainless steel spoons, Forks and Knives

IS-990-Spoons Stainless Steel

IS-992-Forks (Table, Fish and serving) Stainless steel

IS-994-Butter knives and fish knives

IS-995-Table Knives, Dessert knives, and Fruit knives

IS-3546-Vegetable knives

C. MARKET POTENTIAL

The number of households in the country is increasing with the increase in population of

the country and there is a heavy backlog housing shortages to be fulfilled. This will

boost up the demand for stainless steel spoons used in households. Besides this there

is separate demand for spoons, forks and knives from hotel and restaurant sector. The

number of hotels and eating houses in the country has been increasing with the

increase in hotels tourist activities and general standard of living.


The installed capacity of the unit is

Tea spoons-9000 dozens per annum

Table Spoons-9000 dozens per annum

Table Forks -9000 dozens per annum

2

Table Knives-9000 dozens per annum

Butter Spreaders-9000 dozens per annum

Bread Cutters-9000 dozens per annum




Value (Rs.lakhs)

Power press 50 Tonnes 1 2.10 Friction Screw press 1 3.10 Guilliotine Shearing Machine 1000-16 swg 1 1.30 Forge with blower & motor 1 0.40 Hand shearing machine 1 0.05 Double body Press no. 1 0.12 Double ended polishing 4 0.20 Double ended grinder 1 0.04 Bench drilling machine 12 mm 1 0.15 Hardening Furnace 1 0.50 Tempering Furnace 1 0.80 Quenching Tank& accessories 1 0.30 Work benches Hand tools & vices 1 0.40 Dies& press Tools 1 0.54


The unit will be purchasing stainless steel sheets .The process involves the following

sequence of operations.

Cutting SS sheets to required sizes

I Shaping in power press

I Hot pressing and trimming of forks

I Surface finishing by hand tools and buffing

I Polishing and packing

3

4. Raw Material

The main raw material required for production of Stainless steel Spoons, forks and

knives are SS sheets which are available from Salem stainless steel. The material can

also be imported.SS-304 and 305 Grades are normally used for this purpose.

5. Land & Building



6. Utilities Power:




salary Total

Salary Manager 1 7000 7000 Supervisor 1 5000 5000 Skilled 5 3000 15000 Helpers 5 2000 10000 Accountant 1 3000 3000 Assistants 1 3000 3000 Security 2 2000 4000 Total 47000 Add 20%benefits 9400 Total 56400 Annually � Rs.6.77 lakhs 7. Implementation Schedule


months period.

4

8. ASSUMPTIONS

S.S.Tea Spoons-9000 dozens S.S.Table Spoons-9000 dozens S.S.Table Forks-9000 dozens S.S.Table Knives-9000 dozens S.S.Bread Spreaders-4500 dozens

Installed capacity per annum

S.S.Bread Cutters-4500 dozens Capacity utilization-Year -1 60% Year-2 70% Year-3 80%

S.S.Tea Spoons-Rs.80/Dozen S.S.Table Spoons-Rs.150/Dozen S.S.Table Forks-Rs.150/Dozen S.S.Table Knives-Rs.150/Dozen S.S.Bread Spreaders-Rs.150/Dozen

Selling price per unit

S.S.Bread Cutters-Rs.150/Dozen Material cost at 100% Qty(including.


(Rs.lakhs) Stainless Sheets 18 Mt Rs.97000 17.46 Consumables per annum-at 100% (Rs.lakhs) Rs.1.20 lakhs Power and Fuel-100% (Rs.lakhs) Rs.4.02lakhs Wages & salaries-100% (Rs.lakhs) Rs.6.77lakhs Repairs & Maintenance p.m. Rs.5000/- Depreciation Written Down Value Method General & administration Expenses per month Rs.10000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a. Income tax provision 36% on profit

5

LIST OF MACHINERY SUPPLIERS 1. Orient Machine Tools New No.269 (old No.130) Linghi Chetty Street Chennai-600 001 2. Quality Machine Tools New No.238, Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New No.279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New No.103, Armenian Street Chennai 600 001 5. Machine Centre New No.214, Linghi chetty Street Chennai 600 001

LIST OF RAW MATERIAL SUPPLIERS 1. Salem Steel Old No.177 (New No.392) Walltax Road, Chennai 600 003. 2. S.C.Shah Enterprises No.315, Mint Street, Chennai 600 003. 3. Anil Metals New No.215, Linghi Chetty Street, Chennai 600 001.

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (Dozen) Tea Spoons 9000 9000 9000 Table Spoons 9000 9000 9000 Table Forks 9000 9000 9000 Table Knives 9000 9000 9000 Butter Spreader 4500 4500 4500 Bread cutter 4500 4500 4500 Utilisation 60% 70% 80% Production/Sales (Dozen) Tea Spoons 5400 6300 7200 Table Spoons 5400 6300 7200 Table Forks 5400 6300 7200 Table Knives 5400 6300 7200 Butter Spreader 2700 3150 3600 Bread cutter 2700 3150 3600 Selling Price/Dozen (in Rupee) Tea Spoons 80.00 Table Spoons 150.00 Table Forks 150.00 Table Knives 150.00 Butter Spreader 150.00 Bread cutter 150.00 Sales Value 36.72 42.84 48.96 Raw Materials 10.48 12.22 13.97 Consumables 0.72 0.84 0.96 Power 2.41 2.81 3.22 Wages & Salaries 6.77 7.11 7.47 Repairs & Maintenance 0.60 0.63 0.66 Depreciation 2.88 2.16 1.24 Cost of Production 23.86 25.77 27.52 Admin, & General expenses 1.20 1.26 1.32 Selling expenses 1.84 2.14 2.45 Interest on Term Loan 1.05 0.92 0.66 Interest on Working Capital 0.32 0.32 0.32 Total 28.27 30.41 32.27

8

Profit Before Tax 8.45 12.43 16.69 Provision for tax 3.04 4.47 6.01 Profit After Tax 5.41 7.96 10.68 Add: Depreciation 2.88 2.16 1.24 Cash Accruals 8.29 10.12 11.92


22%


114%


187%

9


FC x 100 11.35 80 BEL = FC +P 28.04

x 100

x 100


1

STAINLESS STEEL VESSELS A. INTRODUCTION

The consumption of stainless steel has been increasing in the country all over these

years.

The stainless steel is used in the manufacture of vessels, utensils, tanks and other

sophisticated items. In view of its versatility and non-corrosive nature of the metal it has

various applications in domestic and industrial uses. Considering the growth in this area

there is a good scope for new stainless steel vessels manufacturing units to be set up.


There is no is specifications for Stainless utensils. The raw material namely stainless

steel should be of good quality. The products are manufactured according to market

requirements and customers specifications. The Stainless steel tumblers, cooking

vessels, plates, tawas are very popular and consumed widely in all sectors. The

stainless steel utensils are normally made with 24 and 28 gauge stainless steel sheets.

C. MARKET POTENTIAL

The stainless steel is exceedingly used in utensils and domestic vessels. With the

growth of population and housing the demand for stainless steel vessels is increasing

day by day. The demand for stainless steel vessels emanates from domestic

households, hotels and establishments and processing industries. The demand for

housing is increasing as there is a heavy backlog of houses to be constructed in India

and there is a scope of adding 50 lakhs houses every year. This allows a big demand

for Stainless steel vessels. The growth of chemical industries and hotels also provide

ample scope for stainless steel vessels.

2


The installed capacity of the proposed unit is manufacturing of 36 tonnes of Stainless

steel vessels per annum .This is based on 120 kgs of stainless steel vessels per day of

8 hours working, 300 days in ayear.



Items Qty (nos.)

Value (Rs.Lakhs)

6” Spinning lathe 6 3.50 Deep Drawing Power Press 50 Tonne 1 1.90 Single sided fly Press 1 0.12 Spot Welding machine 1 0.10 Beading machine 1 0.60 Circle cutting machine 36” 2 0.40 100 Tonne hydraulic Press 1 5.20 Shearing Machine 1 0.50 Polishing Machine 5 1.50 Misc tools & instruments 0.50 Electrically heated box type chamber furnace Heating chamber size 24”x24 “x18”-20 kw rolling with temperature control

2.00

Stamping machine 0.15 Weighing scales 0.50 Dies for press and fixtures 1.50 For Maintenance 41/2 ‘ Light duty lathe machine 1 1.20 ¼ capacity geared drilling machine 1 0.15 Bench grinder 1 0.08 Gas Welding 1 0.10


The manufacturing involves Sheet cutting, pressing, welding, and polishing. The

spinning lathe is used to give curve shape to the product using suitable tool. The

welding set is used to join the different pieces and to form the required shape. Grinder is

used to smoothen the projected surface to give uniform surface. Polishing machine is

3

used to give a bright finish to the product. The beading machine is used to raise

projections wherever required especially in the case where lid is used. Drilling machine

is used for drilling hole at required places. Fly press is used to make small components

by using suitable die. Circle cutting is used to cut sheets in the circular form.

4. Raw Material

The raw materials required for manufacturing Stainless steel vessels is stainless sheets

of various gauges. The other consumables such as polishing wheels, emery powder,

polishing soap, Brass rod, wood, Carbide stones, Oxygen gas, Silver Brazing Rod, etc

The stainless sheets of suitable grade is available from Salem stainless steel and other

dealers.

5. Land & Building



6. Utilities Power:




salary Total

Salary Supervisors 1 5000 5000 Operators 3 3000 9000 Unskilled 5 2000 10000 Assistants 2 3000 6000 Security 2 2000 4000 Total 34000 Add 20%benefits 6800 Total 40800 Annually � Rs.4.90 lakhs

4



months period.

8. ASSUMPTIONS Installed capacity per annum Stainless Steel Vessels-36 MT Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Stainless Steel Vessels-Rs.2.80 lakhs/Mt Material cost at 100% Qty(including

20%wastage) Rate/MT Value

(Rs.lakhs) Stainless Sheets 43.20 Mt Rs.150000 64.80 Polishing Wheels, Emery powder, Polishing Soap,/oil. Brass rods, Wood, Carbide Stones, Oxygen gas, Silver Brazing rod,

6.95

Total 71.75 Consumables per annum-at 100% (Rs.lakhs) Rs.1.20 lakhs Power and Fuel-100% (Rs.lakhs) Rs.3.23lakhs Wages & salaries-100% (Rs.lakhs) Rs.4.90lakhs Repairs & Maintenance p.m. Rs.2000/- Depreciation Straight Line Method General & administration Expenses per month Rs.10000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a. Income tax provision 36% on profit

5

LIST OF MACHINERY SUPPLIERS 1. Orient Machine Tools New No.269 (old No.130) Linghi Chetty Street Chennai-600 001 2. Quality Machine Tools New No.238, Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New No.279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New No.103, Armenian Street Chennai 600 001 5. Machine Centre New No.214, Linghi chetty Street Chennai 600 001

LIST OF RAW MATERIAL SUPPLIERS 1. Salem Steel Old No.177 (New No.392) Walltax Road, Chennai 600 003. 2. S.C.Shah Enterprises No.315, Mint Street, Chennai 600 003. 3. Anil Metals New No.215, Linghi Chetty Street, Chennai 600 001.

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (MT) 36 36 36 Utilisation 60% 70% 80% Production/Sales p.a. (MT) 22 25 29 Selling Price/ MT (in Rupees) 2.80 lakhs Sales Value 61.60 70.00 81.20 Raw Materials 43.05 50.23 57.40 Consumables 0.72 0.84 0.96 Power 1.45 1.69 1.94 Wages & Salaries 4.90 5.15 5.41 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 2.15 2.15 2.15 Cost of Production 52.51 60.31 68.12 Admin, & General expenses 1.20 1.26 1.32 Selling expenses 1.85 2.10 2.44 Interest on Term Loan 2.10 1.84 1.31 Interest on Working Capital 0.73 0.73 0.73 Total 58.39 66.24 73.92 Profit Before Tax 3.21 3.76 7.28 Provision for tax 1.15 1.34 2.60 Profit After Tax 2.06 2.42 4.68 Add: Depreciation 2.15 2.15 2.15 Cash Accruals 4.21 4.57 6.83

8


6%


32%


54%

9


FC x 100 10.45 80 BEL = FC +P 17.73

x 100

x 100


1

STAPLE PINS AND GEM CLIPS A. INTRODUCTION

Staple pins and Gem clips are most commonly used office stationery items. There is no

official establishment where these products are not used. The demand is always

growing with the increase in number of offices and industrial establishments. Currently

there is no other substitute for these products.


Staple pins are manufactured out of 0.5 mm thick long stips of Mild steel and Gem clips

are made out of Mild steel wires of 18-20 Gauge. Staple Pins are made in strips of 50

nos. Normally a packet contains 20 Strips. Gem clips are available in Boxes containing

100 gem clips. The staple pins shall be sufficiently strong and shall not bend in use.

The pins shall be clean and bright. For this nickel plating is done. The gem clips are

also nickel plated.

C. MARKET POTENTIAL

The number of commercial organizations and industries are increasing year after year.

The globalization and liberalization of industry and trade have also given birth to various

commercial establishments and this provides ample scope for units manufacturing office

stationery items .The growth of these items will be consistent.


The installed capacity of the proposed unit is manufacturing of 144000 boxes (20 strips

per box) of Staple Pins and 57600 boxes (100 Gem clips per box) of Gem clips per

annum. This is based on a machine capacity of a particular configuration which

produces 480 boxes of Staple pins and 192 Boxes of gem clips par day of 8 hour shift.

The unit is proposed to work for 300 days per annum.

2




Value (Rs.lakhs)

Automatic Staple pins making machine For no 10,12,13/8, 24/6 and 23/9

2 5.40

Miscellaneous tools 1 0.40 Automatic Gem clip Making machine – Wire 18 to 20 SWG

2 3.00

Misc. Tools 0.20 Nickel Plating 1.00


The manufacturing of Staple pins involves the following sequence of operations.

Feeding of Hard drawn bright wire of suitable gauge to automatic Staple pin making machine

I Forming the staple pins in the machine

I Pickling and cleaning the pins in a plastic container

I Plating with Nickel in plating equipment

I Drying the plated pins in a drying drum

I Packing in cartons and despatching

4. Raw Material

The raw materials required for manufacturing Stapler pins are Ms wire 0.5 mm thick,

and for gem clips it is Hard drawn Bright Wire of Grade 18-20 SWG. These are

available from dealers. The Nickel plating materials are also available locally.

5. Land & Building



3



salary Total

Salary Supervisors 1 5000 5000 Operators 2 3000 6000 Assistants 1 3000 3000 Security 1 2000 2000 Total 16000 Add 20%benefits 3200 Total 19200 Annually �� Rs.2.30 lakhs 7. Implementation Schedule


months period.

8. ASSUMPTIONS

Staple Pins-144000Boxes(20 strips-per box) Installed capacity per annum Gem Clips-57600 Boxes(100 nos per box)

Capacity utilization-Year -1 60% Year-2 70% Year-3 80%

Staple Pins-Rs 8.00/Box Selling Price/unit Gem Clips-Rs.7.00/Box


wastage) Rate (Rs.)

Value (Rs.lakhs)

Gem clips Copper coated Ms Wire 2.24Mt 24000/Mt 0.54 Nickel plating 2.24Mt 5000/mt 0.07 Packing 57600

Boxes Re.0.25/box 0.14

Total 0.75

4

Staple Pins Copper coated Ms Wire 5.744Mt 24000/Mt 1.38 Nickel plating 5.74Mt 5000/mt 0.17 Packing 144000

Boxes Re

0.25/box 0.36

Total 1.91 Consumables and Packing p.a. at 100% (Rs.lakhs) Rs.0.24 lakhs Power and Fuel-100%-Rs lakhs Rs.0.41 Wages&salaries-100% Rs.2.30 lakhs Repairs & Maintenance per month Rs.2000/- Depreciation Straight Line Method General & administration Expenses per month Rs.5000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a Income tax provision 36% on profit

5

LIST OF MACHINERY SUPPLIERS 1. A.M.I.Machine Tools 20 Ambalal Doshi marg(Hammam Street) Fort Mumbai-400 023 2. K.B.Machine Factory Sultan Wind Road Amritsar. 3. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 4. Ajith Wire Products No.41, Gokal Ka Bagh (New 100 feet Road) East Mohan Nagar, Amritsar 5. S.B. Machine Toosl 23/4, Street – 11, Ananth Prabat Industrial area, New Delhi 110 005. LIST OF RAW MATERIAL SUPPLIERS 1. Matchless Wire Products 1/9-D TR Street Kondithope Chennai-600 001 2. Decan Wires & Weldings Pvt. Ltd. 18, Shanthappa Lane S.P.Road, II – Cross Bangalore 560 02. 3. Swill Ltd. 18, Kandi chetty Street, Chennai 600 001. 4. Wire & Wire Products New No.26, Vepery High road, Perimet, Chenni 600 023. 5. Standard Wire Products 145/219, SIDCO Industrial Estate, Ambatture, Chennai 600 098.

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs} Years 1 2 3 Installed Capacity (Box) Gem clips 57600 57600 57600 Staple pins 144000 144000 144000 Utilisation 60% 70% 80% Production/Sales (MT) Gem clips 34560 40320 46080 Staple pins 86400 100800 115200 Selling Price/Box (in Rupee) Gem clips 7 per box Staple pins 8 per box Sales Value (Rs.lakhs) Gem clips 2.42 2.82 3.23 Staple pins 6.91 8.06 9.22 Total sales value 9.33 10.88 12.45 Raw Materials Gem clips 0.45 0.53 0.60 Staple pins 1.15 1.34 1.53 Consumables 0.14 0.17 0.19 Power 0.25 0.29 0.33 Wages & Salaries 2.30 2.42 2.54 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 1.10 1.10 1.10 Cost of Production 5.63 6.10 6.55 Admin, & General expenses 0.60 0.63 0.66 Selling expenses 0.28 0.33 0.37 Interest on Term Loan 1.05 0.92 0.66 Interest on Working Capital 0.07 0.07 0.07 Total 7.63 8.05 8.31 Profit Before Tax 1.70 2.83 4.14 Provision for tax 0.61 1.01 1.48 Profit After Tax 1.09 1.82 2.66 Add: Depreciation 1.10 1.10 1.10 Cash Accruals 2.19 2.92 3.76

8

4. WORKING CAPITAL: [rs.lakhs] Months Values % Margin Bank Consumption Amount Finance Raw Materials 0.75 0.10 25% 0.03 0.07 Consumables 1.00 0.01 25% 0.00 0.01 Finished goods 0.25 0.12 25% 0.03 0.09 Debtors 0.50 0.39 10% 0.04 0.35 Expenses 1.00 0.50 100% 0.50 0.00 1.12 0.60 0.52 5. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 2.66 Sales 12.45

21%


39%


61%

9


FC x 100 5.22 80 BEL = FC +P 9.36

x 100

x 100


1

TIE-ROD END ASSEMBLY AND GEAR SHAFTS A. INTRODUCTION

Tie-rod end assemblies and gear shafts are two important components in a vehicle.

Steering system in a vehicle is required to turn left or right .Tie-rod forms main

component in steering system. Gear shafts are required to keep the vehicle in motion at

various speeds and loads.


To guide the vehicle along the road and turn left and right as desired an effective

steering system is required. The system includes the steering wheel, the steering gear

and steering linkages. The steering linkages include Tie-rods, Ball sockets, Tie-rod

ends, steering ohms etc. Tie-rod is the one with one end threaded and the other end

fitted with ball sockets the former end connected to the wheel. This enables the vehicle

to maintain the turning uniform to prevent sideslip and excessive wear.

Gear shaft is the shaft in which the gears of various diameters are assembled to enable

to shift gear to keep the vehicle in motion at various speeds and loads.

The tie-rod end assembly consists of a rack, rack spring, inner thrust bearing, retaining

pin ball socket, tie rod, locknut and tie rod end

C. MARKET POTENTIAL







2







components.









components.


The proposed machine would work for 2 shifts a day for 300 days. The total machine

hours available will be 4500. Out of this 70% efficiency is taken as the achievable

production. Each component will take about 2 minutes on this basis the gross

production works out to 189000 components per annum. For 3150 machine hours, 70%

-Tie rod assembly -160000 nos and 29000 nos Gear shafts per annum

3




Value (Rs.lakhs)

CNC Lathe with all accessories 2 22.80 Hydraulic Hacksaw Machine 1 0.50 Double ended Buffing Machine 1 0.10 Hand drill Machine with stand 1 0.20 Double Ended Bench Grinder with stand 1 0.10 Micrometer,Vernier caliper,digimatic with Battery vernier Caliper,Slip Gauges

1 0.80

Oter Miscellaeous tools 0.50 Total 25.00


The process of manufacturing would follow general engineering jobs such as drilling,

boring, turning, grinding, finishing, etc. These are general engineering jobs and they can

be undertaken by skilled operators with the help of preset programme.

4. Raw Material

The raw materials required fro the production of tie rod end assembly is EN 8 grade

steel and EN 18 grade steel. This material can be procured from any reputed dealers of

steel. For manufacturing Gear shafts EN 8 steel is required. For Tie-rods En-8 material

in forged condition has to be made available from other forging shops as semi finished

product.

5. Land & Building A rented place with 3000 sqft. area is required. The monthly rent is estimated at


6. Utilities Power:


Water:


4


salary Total Salary

Supervisors 1 5000 5000 Operators 4 3000 12000 Unskilled 3 2000 6000 Assistants 2 2500 5000 Security 2 2000 4000 Total 32000 Add 20%benefits 6400 Total 38400 Annually �� Rs.4.61 lakhs 7. Implementation Schedule


months period.

8. ASSUMPTIONS 160000 Nos. Tie-Rod Assembly Installed capacity per annum 29000 Nos Gear Shafts


Tie Rod Assembly-Rs 50.00 per piece Selling price per unit Gear shaft-Rs 175.00 per piece

Material cost at 100% Qty (including

wastage) Rate Rs/unit Value

(Rs.lakhs) Tie-rod assembly EN-8 Socket –semi-finished 160 000 pcs 14/pc 22.40 En-18 Ball Pin –Semi-finished 160 000 pcs 14.30/pc 22.88

Sub total 45.28 Gear shaft - EN-8 Steel Rod 38077 Kgs 36/kg 13.71 Consumables and Packing p.a.-at 100%(Rs lakhs) Rs.0.36 lakhs Power and Fuel-100% - Rs lakhs Rs.5.63 lakhs Wages & salaries-100% (Rs.lakhs) Rs.4.61 lakhs Repairs & Maintenance- p.m. Rs.5000/- Depreciation Written Down value Method General & administration Expenses per month Rs.50000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a Income tax provision 36% on profit

5

LIST OF MACHINERY SUPPLIERS CNC-Lathes 1. Madras Mechatronics Pvt Ltd 15/1, Mel ayanambakkam Road Ayanambakkam Ambattur-Vanagaram Road Chennai-600102 2. Vignesh Engineering 225, VGP Nagar Mugappair Chennai-600058 3. HMT ltd 33, Haddows Road Chennai-600 034 Machine Tools 1. Quality Machine Tools New No.238 Linghi Chetty Strret Chennai 600 001 2. Gujrat Machine Tools New No.279, Linghi Chetty Street Chennai 600 001 3. Premier Machine Tools New No.103, Armenian Street Chennai 600 001 4. Machine Centre New No.214 linghi chetty Street Chennai 600 001

LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New 273, Linghi Chetty Street Chennai-600 001

6

3. Bhagawandas Metals ltd No.54, Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006 5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003

7

1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 1.50 Plant & Machinery 25.00 Electrical 3.00 Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC 1.66 33.66 2. MEANS OF FINANCE Capital 12.66 Term Loan 21.00 33.66

8

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (No.) Tie rod end assembly 160000 160000 160000 Gear Shafts 29000 29000 29000 Utilisation 60% 70% 80% Production/Sales (No.) Tie rod end assembly 96000 112000 128000 Gear Shafts 17400 20300 23200 Selling Price/piece (in Rupee) Tie rod end assembly Rs.50 per piece Gear Shafts Rs.175 per piece Sales Value (Rs.lakhs) Tie rod end assembly 48.00 56.00 64.00 Gear Shafts 30.45 35.53 40.60 Total sales value 78.45 91.53 104.60 Raw Materials Tie rod end assembly 27.17 31.70 36.22 Gear Shafts 8.23 9.60 10.97 Consumables 0.22 0.25 0.29 Power 3.38 3.95 4.51 Wages & Salaries 4.61 4.84 5.08 Repairs & Maintenance 0.60 0.63 0.66 Depreciation 7.63 5.72 2.91 Cost of Production 51.84 56.69 60.64 Admin, & General expenses 6.00 6.30 6.62 Selling expenses 2.35 2.75 3.14 Interest on Term Loan 2.94 2.57 1.84 Interest on Working Capital 0.76 0.76 0.76 Total 63.89 69.07 73.00 Profit Before Tax 14.56 22.46 31.60 Provision for tax 5.20 8.02 11.28 Profit After Tax 9.36 14.44 20.32 Add: Depreciation 7.63 5.72 2.91 Cash Accruals 16.99 20.16 23.23

9


19%


88%


161%

10


FC x 100 17.11 80 BEL = FC +P 48.71

x 100

x 100


1

U-CLAMPS A. INTRODUCTION

The U-Clamp, which is in the shape of U refers to the clamp which is used to hold

together the several layers of leaf springs of an automobile and hold them on to the

axle. In every automobile the leaf springs are held together by the help of 2 clamps in

each set of leaf springs. The function of a clamping device is that of applying and

maintaining sufficient counteracting holding force to work force to withstand all tooling

forces. The U-Clamps are frequently replaceable item in a vehicle.

B.PRODUCT USES AND SPECIFICATIONS

Leaf springs are the oldest and still frequently used springing system in a vehicle. Such

springs consist a number of steel strips (spring Leaves) which are stacked one upon

another and are held by shackles. The centre of the spring is hung from the rear axle

house by a pair of U-Clamps.

The U-Clamp used to hold spring leaves are made of MS rods of various sizes

depending on the spring assembly. For example, for rear spring clamps of sizes

between 14” and 22” (length) and front spring system 8” and 10” (length) are used.

State Road Transport Corporations prefer EN 19 and EN 8 grade steel for

manufacturing U-Clamps for OE supply.

The U-Clamp is having U shape having threads at various at both ends and is supplied

along with two nuts.

CENTRE BOLT

Centre Bolt is used to fasten the leaf springs together at the centre of the leaf springs to

avoid displacement of the leaves. The centre bolt is normally used for the axle spring

assembly.

2

I-BOLT

I-Bolt has the same function as the centre bolt but in Leyland Front Suspension and the

like, instead of Centre bolts, I-Bolts are used.

C. MARKET POTENTIAL



Chennai emerges the Detroit of south East Asia.Tamil Nadu has always been a fore-






components.





C. TECHNICAL ASPECTS 1. Installed Capacity

The installed capacity of the unit is 600 000 Nos U-Clamps,240 000 Nos Centre Bolts,

and 120 000 Nos I-Bolts per annum. This is based on double shift operations 300 days

in a year, 8 hours per shift.

3




Value (Rs.lakhs)

Diesel Furnace 1 0.80 Power Press (Cutting) 1 2.30 Power Press (Trimming) 1 2.50 Thread Roller 1 4.30 Rollers for Thread Roller 1 1.60 Draw Bench 1 2.90 Straightening Machine 1 2.50 Head Forging Machine 1 3.20 Turning & Chamfering machine 1 4.60 Acid Tankers 2 1.70 Bending Press 1 2.30 Thread Roller 1 1.40 Country Die Head 1 0.70 Facing Adda 1 0.50 Diesel Furnace 1 0.70 Table Grinder 1 0.20 Auto Blackening Machine 1 2.60 Testing instruments 0.20


The unit will be purchasing steel bars of required sizes from other Bright bar units and

reducing the dimension by using the draw benches. The unit will have all sophisticated

machines to manufacture components. After finishing operations all parts will be packed

and dispatched.

Reducing Dimension of bars (Draw Bench) I

Cutting to near Diameter (Power Press) I

Thread Rolling (Thread Rolling Machine) I

Heating (Heating Machine) I

Bending to shape (Bending Machine) I

Nut Fitting (Nuts from outside) I

Painting, finishing and Packing

4

4. Raw Material

The main raw material required for production of U-Clamps are MS bright bars or EN-

8 or C46 .MS Bright bars of various thicknesses ranging from 12 mm to 25.4 mm can

be purchased from bright bar manufacturers. There is no shortage for these materials.

The nuts can be purchased from other manufacturers.

5. Land & Building



6. Utilities



salary Total

Salary Manager 1 10000 10000 Foreman 1 7000 7000 Asst.Foreman 1 5000 5000 Operators 30 3000 90000 Helpers 20 2000 40000 Accountant 1 4000 4000 Assistants 3 3000 9000 Security 2 2000 4000 Total 169000 Add 20%benefits 33800 Total 202800 Annually � Rs 24.34 lakhs 7. Implementation Schedule If financing arrangement is made available the project can be implemented with in three

months period.

5

8. ASSUMPTIONS

U-Clamps-600 000Nos Centre Bolts-240 000 Nos Installed capacity per annum I-Bolts-120 000 Nos


U-Clamps-Rs.110.00 Centre Bolts-Rs.10.00 Selling price per unit I-Bolts-Rs.34.00

Material cost at 100%

Qty(incldg. wastage)

Rate Value (Rs.lakhs)

U-Clamps M.S. Bars 1866000Kgs 20/kg 373.20 Nuts 1200000 Rs5.20/Nut 62.40

Sub total 435.60 Centre Bolts M.S. Bars 75840 Kgs 20/kg 15.17 Nuts 240000 Rs1.00/Nut 2.40

Sub total 17.57 I-Bolts M.S. Bars 106080 20/kg 21.22 Nuts 120000 Rs8.00/Nut 9.60

Sub total 30.82 Consumables and Packing p.a. at 100% (Rs.lakhs) Rs.26.88 lakhs Power and Fuel-100%-Rs lakhs Rs.16.08 lakhs Wages&salaries-100% Rs.24.34 lakhs Repairs & Maintenance per month Rs.10000/- Depreciation Written Down value Method General & administration Expenses per month Rs.100000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a Income tax provision 36% on profit

6

LIST OF MACHINERY SUPPLIERS Machine Tools 1. Quality Machine Tools New 238, Linghi Chetty Strret Chennai 600 001 2. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 3. Premier Machine Tools New 103, Armenian Street Chennai 600 001 4. Machine Centre New 214 linghi chetty Street Chennai 600 001 Tempering /Heat Treatment Furnaces 1. Pyrotherm Engineers 245/2B Vanagaram Road Athipet Chennai-600 058 2. Pyromasters Furnaces Pvt Ltd A-13 SIDCO Industrial Estate Villivakkam Chennai-600 049 3. KSM Laboratory Glass Works 40 NP.Thiru-vi-ka Industrial Estate Chennai-600 032 4. Thermal Systems TS-33 TVK Street Guindy Chennai_600 032 LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001

7

2. Mahavir Indusrial Corporation New 273, Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54, Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006 5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003

8


9

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (No.) U Clamps 600000 600000 600000 Centre Bolts 240000 240000 240000 I - Bolts 120000 120000 120000 Utilisation 60% 70% 80% Production/Sales (No.) U Clamps 360000 420000 480000 Centre Bolts 144000 168000 192000 I - Bolts 72000 84000 96000 Selling Price/piece (in Rupee) U Clamps Rs.110 per piece Centre Bolts Rs.10 per piece I - Bolts Rs.34 per piece Sales Value (Rs.lakhs) U Clamps 396.00 462.00 528.00 Centre Bolts 14.40 16.80 19.20 I - Bolts 24.48 28.56 32.64 Total sales value 434.88 507.36 579.84 Raw Materials U Clamps 261.36 304.92 348.48 Centre Bolts 10.54 12.30 14.06 I - Bolts 18.49 21.57 24.66 Consumables 16.85 19.66 22.46 Power 9.65 11.26 12.87 Wages & Salaries 24.34 25.56 26.84 Repairs & Maintenance 1.20 1.26 1.32 Depreciation 9.50 7.13 4.59 Cost of Production 351.93 403.66 455.28 Admin, & General expenses 12.00 12.60 13.23 Selling expenses 13.05 15.22 17.40 Interest on Term Loan 3.64 3.19 2.28 Interest on Working Capital 5.84 5.84 5.84 Total 386.46 440.51 494.03

10



9%


107%


219%

11


FC x 100 48.26 80 BEL = FC +P 134.07

x 100

x 100


1

WEIGHING MACHINES

A. INTRODUCTION

A Weighing is one of the essential tools in day today life. With the growth of education,

commercial activities, industrial production and consumerism the usage of weighing

machines are widespread and every year new weighing machines are to be produced.

The weighing machines are used in all offices, commercial establishments, industries

and even in households. There is a continued demand for these items.


A large number of components are used by for the manufacturing of weighing machines

and they have to be checked for their dimensional accuracy and tolerance so that

performance of the final weighing machine will be ensured. The following varieties of

weighing machines are very popular

1. All types of physical balances-Laboratory purpose

2. All types of counter scale (9500 gms to 250 kg)-Shops, Postal and laboratories

3. All types of Platform scale (50 kgs to 300 kgs)-Shops, Godowns and Industrial

purpose

4. All types of Dormant Scale (500kg to 5 tons)-Industrial purpose

5. All types cart weigher (93MT, 5MT, 10 MT) weighing trolley, Mini trucks, Bullock

cart

6. All types of Weigh Bridges (10MT, 15MT, 20MT, 25MT, 30MT, 40MT) weighing

Heavy Trucks.

C. MARKET POTENTIAL

The products to be manufactured belong to the engineering sector and the general


continuous demand for this product as it is consumed in all shops and establishments.

2


The installed capacity of the proposed unit is manufacturing of 10 weighing machines of

various sizes. For the purpose of calculation 10 machines per is assumed as the

achievable production of an average weighing machine priced Rs.2500. On this basis,

the annual installed capacity is assumed at 3000 Nos. of weighing machines .This is

based on single shift operation per day of 8 hours.




Value (Rs.lakhs)

Grinding Machine 1 0.04 Drilling Machine 1 0.12 Wolf Grinder 1 0.05 Hand Drilling machine 1 0.12 6” Disc type Hand Grinding machine 1 0.05 Spray compressor Painting Booth 1 0.07 Radial drilling Machine 1 0.08 Welding machine 1 0.10 Fitting Machine Tools 1set 0.05 Testing weights 0.15 Testing Instruments 0.17



Purchase of Rough castings and components I

Machining of Rough castings in grinding machines and polishing I

Assembling in assembly benches I

Painting in painting booth I

Testing I

Stamping with weights and measures Department I

Packing and Despatching

3

4. Raw Material

The raw materials required for manufacturing Weighing machines are Rough castings

which are available from casting centres like Coimbatore and Kolkata. The other

components are also available from the local market and Kolkata.

5. Land & Building


Rs5000 and the advance anticipated is Rs.50000



salary Total

Salary Supervisors 1 5000 5000 Operators 5 3000 15000 Unskilled 5 2000 10000 Assistants 2 3000 6000 Security 2 2000 4000 Total 40000 Add 20%benefits 8000 Total 48000 Annually �� Rs.5.76 lakhs 7. Implementation Schedule If financing arrangements is made available the project can be implemented within three

months period.

4

8. ASSUMPTION Installed capacity per annum Weighing Machine – 3000 Nos. Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Weighing Machine - Rs.2,500/per M/c. Material cost at 100% for the production of 3000 machines

Value (Rs.lakhs)

Casting & Components 45.00 Consumables per annum-at 100% (Rs.lakhs) Rs.1.20 lakhs Power and Fuel-100% (Rs.lakhs) Rs.0.41 lakhs Wages & salaries -100% (Rs.) Rs.5.76 lakhs Repairs & Maintenance- p.m. Rs.2000/- Depreciation Straight Line Method General & administration Expenses per month Rs.50000/- Selling expenses 5% on Sales Interest on term loan and Working capital finance 14% p.a. Income tax provision 36% on profit

5

LIST OF MACHINERY SUPPLIERS 1. Orient Machine Tools New No.269 (old No.130) Linghi Chetty Street Chennai-600 001 2. Quality Machine Tools New No.238 Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New No.279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New No.103 Armenian Street Chennai 600 001 5. Machine Centre New No.214 Linghi chetty Street Chennai 600 001 LIST OF RAW MATERIAL SUPPLIERS 1. Sri Shanmuga Castings 41, Avinashi Road, Cheniyampalayam, Coimbatore 641 062. 2. R.K.S. Industries, 8/230-F, Sarada Mill Road, Podanur, Coimbatore 641 023 3. Hindustan Weighing Systems No.9, Station View Road, Kodambakkam, Chennai 600 024.

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity p.a. (No. of M/c.) 3000 3000 3000 Utilisation 60% 70% 80% Production/Sales p.a. (No. of M/c.) 1800 2100 2400 Selling Price/ M/c. (in Rupee) 2,500 per M/c. Sales Value (Rs.lakhs) 45.00 52.50 60.00 Raw Materials 27.00 31.50 36.00 Consumables 0.72 0.84 0.96 Power 0.25 0.29 0.33 Wages & Salaries 5.76 6.05 6.35 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 0.18 0.18 0.18 Cost of Production 34.15 39.11 44.08 Admin, & General expenses 6.00 6.30 6.62 Selling expenses 2.25 2.63 3.00 Interest on Term Loan 0.11 0.09 0.07 Interest on Working Capital 0.49 0.49 0.49 Total 43.00 48.62 54.26 Profit Before Tax 2.00 3.88 5.74 Provision for tax 0.72 1.40 2.07 Profit After Tax 1.28 2.48 3.67 Add: Depreciation 0.18 0.18 0.18 Cash Accruals 1.46 2.66 3.85

8


6%


88%


128%

9


FC x 100 13.48 80 BEL = FC +P 19.22

x 100

x 100


1

WELDING ELECTRODES A. INTRODUCTION

Welding Electrodes are widely used consumables in all industries where welding jobs

are done. The welding electrodes are used in industries where exclusive job works on

welding is done and also in other industries where production operations are conducted.

The consumption of these welding electrodes is increasing in line with the increase in

the industrial production in all the sectors. There is a good scope for this fast

consumable item to be produced in small scale sector.


The welding electrodes are manufactured in various sizes namely 2.5 x 350 mm,3.15 x

350 mm ,4.00 x 450 mm and 5.00 x 500.

C. MARKET POTENTIAL

The welding electrodes are used for welding operations in the following industries

1. General engineering workshop

2. Cement plant and machinery manufacturing

3. Sugar plant and machinery manufacturing

4. Ship building industries

5. Chemical and allied industries.

6. Plant and machinery manufacturing industries


1. Installed Capacity

The proposed installed capacity of the unit is manufacturing 3000 kgs of Welding

Electrodes per day on a single shift basis, 8 hours per day, 300 days in a year. The

product mix proposed is as follows:

2

2.5 mm-450 packets of 60 pcs per packet per day-135 000 packets per annum


4.0 mm-350 packets of 60 pcs per packet per day- 105 000 packets per annum





Value (Rs.lakhs)

Wire straightening and cutting machine with tungsten carbide toolings for one size of wire

1 3.66

Slug press 1 2.10 Extrusion plant consisting of ,wire feeder, Hydraulic extrusion press, conveyor, electrode printing unit

1 17.97

Electrode wire and flux reclamation machine 1 1.99 Dry mixer 1 2.59 Wet Mixer 1 4.23 Extra sets of toolings for wire straightening machine and cutting machine

1 0.31

Electrode Drying oven 1 3.06 Electrode concentricity tester 1 0.09



Wire cutting I

Binders-Dry flux preparation I

Wet flux preparation Briquetting I

Loading wire in Hopper I

Extrusion of Electrodes I

Printing I

Concentricity testing and visual Inspection I

Baking

3

I Visual inspection

I Packing

I Packing and Despatching

4. Raw Material

The raw materials required for manufacturing Weighing machines are M.S. wire of

various thicknesses namely 2.5 mm, 3.15 mm, 4.00 mm and 5.00 mm. For preparing

the flux various materials such as Rutile Titanium dioxide, Ferro manganese, cellulose,

Potassium /sodium silicate, Quartz, China clay, Magnasite Illuminate etc are required.

These are available from dealers.

5. Land & Building


Rs10000 and the advance anticipated is Rs.100000



salary Total

Salary Supervisors 1 5000 5000 Operators 5 3000 15000 Unskilled 5 2000 10000 Assistants 2 3000 6000 Security 2 2000 4000 Total 40000 Add 20%benefits 8000 Total 48000 Annually �� Rs.5.76 lakhs

4

7. Implementation Schedule If financing arrangements is made available the project can be implemented within three

months period.

8. ASSUMPTION Installed Capacity per annum Welding electrodes :

2.50 mm – 135000 packets p.a. 3.15 mm – 110000 packets p.a. 4.00 mm – 105000 packets p.a. 5.00 mm – 25500 packets p.a.

Capacity utilization-Year -1 60% Year-2 70% Year-3 80% Selling price per unit Welding Electrodes:

2.50 mm – Rs.70 per packets 3.15 mm – Rs.95 per packets 4.00 mm – Rs.120 per packets 5.00 mm – Rs.180 per packets

Consumables per annum-at 100% (Rs.lakhs) Rs.2.40 lakhs Power and Fuel p.a. -100% (Rs.lakhs) Rs.7.25 lakhs Wages & salaries p.a.-100% (Rs.lakhs) Rs.5.76 lakhs Repairs & Maintenance- p.m. Rs.5000/- Depreciation Written down Value Method General & administration Expenses per month Rs.50000/- Selling expenses 3% on Sales Interest on term loan and Working capital finance 14% p.a. Income tax provision 36% on profit

Material cost at 100% Requirement

p.a. (K.g.) Rate/ k.g. (Rs.)

Value Rs.lakhs

M.S.Wire Electrode for 2.50 mm 109500 26.0 28.47 for 3.15 mm 213000 25.7 54.74 for 4.00 mm 288000 25.7 74.02 for 5.00 mm 109500 25.7 28.14

Total 185.37 Flux 225000 33.0 74.25

Total 259.62 Add : Wastage 15% 38.94

Total 298.56

5

LIST OF MACHINERY SUPPLIERS 1. Sharp Tools No.9/10, SITRA Road Sharp Nagar Kalapatti Coimbatore-641 035 2. Vanarc Welding Electrodes No.28/23, Rani anna Nagar Chennai 600 078 3. Bharat Engineering and Machine Works No.1021, Sathy Road L.K.Puram . Coimbatore-641 006 LIST OF RAW MATERIAL SUPPLIERS 1. Swil Ltd No.8, Kondi Chetty street Chennai-600 001 2. Stanard Wire Products Old No.219, SIDCO Industrial Estate Ambattur Chennai-600 058 3. Wire & Wire Products New No.25, Vepery Road Peramet Chennai- 600 003t 4. Deccan Wires & welding products pvt Ltd No.18 Shanthapa Lane S.P.Cross Road Bangalore-560 002 5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003

6


7

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (No of packets) Welding electrodes-2.50 mm 135000 135000 135000 Welding electrodes-3.15 mm 111000 111000 111000 Welding electrodes-4.00 mm 105000 105000 105000 Welding electrodes-5.00 mm 25500 25500 25500 Utilisation 60% 70% 80% Production/Sales (No.) Welding electrodes-2.50 mm 81000 94500 108000 Welding electrodes-3.15 mm 66600 77700 88800 Welding electrodes-4.00 mm 63000 73500 84000 Welding electrodes-5.00 mm 15300 17850 20400 Selling Price/packet(in Rupee) Welding electrodes-2.50 mm Rs.70 Welding electrodes-3.15 mm Rs.95 Welding electrodes-4.00 mm Rs.120 Welding electrodes-5.00 mm Rs.180 Sales Value (Rs.lakhs) Welding electrodes-2.50 mm 56.70 66.15 75.60 Welding electrodes-3.15 mm 63.27 73.82 84.36 Welding electrodes-4.00 mm 75.60 88.20 100.80 Welding electrodes-5.00 mm 27.54 32.13 36.72 Total sales value 223.11 260.30 297.48 Raw Materials 179.14 208.99 238.85 Consumables 1.44 1.68 1.92 Power 4.35 5.08 5.80 Wages & Salaries 5.76 6.05 6.35 Repairs & Maintenance 0.60 0.63 0.66 Depreciation 9.63 7.22 4.79 Cost of Production 200.92 229.65 258.37 Admin, & General expenses 6.00 6.30 6.62 Selling expenses 6.69 7.81 8.92 Interest on Term Loan 3.78 3.31 2.36 Interest on Working Capital 2.80 2.80 2.80 Total 220.19 249.87 279.07

8



4%


37%


68%

9


FC x 100 20.78 80 BEL = FC +P 39.19

x 100

x 100


1

WOOD SCREWS A. INTRODUCTION

Wood screws are used in furniture industry, packing cases, Electrical wiring, railway

carriages. In building construction work they are commonly used. The sizes of wood

screw varies between smaller to bigger sizes. Even though there are several

manufacturers of wooden screws the market is growing due increased house

construction and requirement from new houses.


Bureau of Indian Standards has laid down specifications for wood screws in IS-451

C. MARKET POTENTIAL















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D. TECHNICAL ASPECTS 1. Installed capacity

The installed capacity is 43200 screws per day of 2 shifts, size ranging from 1/8” to

3/16” dia and length from ¼” to 1½”, average weight is 3 gms. Per day production of

screws is 129.6 kgs, this works out to 38.88 MT per annum of 300 days working.




Double stroke heading M/c. 1 1.60 High speed screw head slotting M/c. 1 0.80 Thread cutting M/c. 1 1.00 Head shaving M/c. 1 1.00 Wire stand 1 0.10 Nickel plating 1 1.00 Misc. Tools 0.25 Other equipment 0.25

Total 6.00


The manufacturing process of wood screw is as follows:

The wire is fed to an automatic heading machine where the head is formed and parting off done according to desired length

↓ The slotting on head is made on slotting machine

↓ The threading is done on thread cutting machine

↓ Packing and Despatch

4. Raw Materials

Hard Bright MS wire is used to manufacturing the wood screws, Nickel is used coating.

5. Land & Building



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6. Utilities

Power:


Water:


Man Power:

Category Nos. Monthly Total Salary Salary p.m. Supervisor 1 5000 5000 Skilled workers 2 3000 6000 Helpers 4 2000 8000 Assistants 2 3000 6000 Security 4 2000 8000 -------- 33000 Add: 20% benefits 6600 -------- 39600 -------- Total salary per annum (Rs.lakhs) Rs.4.75 lakhs 7. Implementation Schedule



8. ASSUMPTION

Installed Capacity per annum Wood Screws – 38.88 MT p.a. Capacity utilization - Year 1 60% - Year 2 70% - Year 3 80% Selling price Wood Screws – Rs.75,000/MT

Raw Material Qty (MT) Rate/MT Value (Rs.lakhs)

MS Wire (including 5% wastage) 40.82 24000 9.80 Nickel 40.82 5000 2.04

Total 11.84

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Consumables cost p.a. at 100% (Rs.lakhs) Rs.1.20 lakhs Power & Fuel at 100% (Rs.lakhs) Rs.0.97 lakh Wages & Salaries (Rs.lakhs) Rs.4.75 lakhs Repairs & Maintenance per month Rs.2,000 p.m Depreciation Straight Line method Administrative & General expenses p.m. Rs.5,000 Selling expenses 3% Interest on Term loan and Working capital finance

14%

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LIST OF MACHINERY SUPPLIERS 1. A.M.I.Machine Tools 20. Ambalal Doshi Marg ,(Hammam Street) Fort Mumbai-400 023 2. Quality Machine Tools New 238 Linghi Chetty Strret Chennai 600 001 3. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 4. Premier Machine Tools New 103 Armenian Street Chennai 600 001 5. Machine Centre New 214 linghi chetty Street Chennai 600 001 LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New 273, Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54 Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006 5. P.K.Vaduvammal No.97, Rasappa Chetty Street Chennai-600 003

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3. COST OF PRODUCTION & PROFITABILITY STATEMENTS Years 1 2 3 Installed Capacity (MT) 38.88 38.88 38.88 Utilisation 60% 70% 80% Production/Sales (MT) 23.33 27.22 31.10 Selling Price/MT (in Rupee) 75,000 per MT Sales Value (Rs.lakhs) 17.50 20.42 23.33 Raw Materials 7.10 8.29 9.47 Consumables 0.72 0.84 0.96 Power 0.58 0.68 0.78 Wages & Salaries 4.75 4.99 5.24 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 0.70 0.70 0.70 Cost of Production 14.09 15.75 17.41 Admin, & General expenses 0.60 0.63 0.66 Selling expenses 0.53 0.61 0.70 Interest on Term Loan 0.63 0.55 0.39 Interest on Working Capital 0.18 0.18 0.18 Total 16.03 17.72 19.34 Profit Before Tax 1.47 2.70 3.99 Provision for tax 0.53 0.97 1.44 Profit After Tax 0.94 1.73 2.55 Add: Depreciation 0.70 0.70 0.70 Cash Accruals 1.64 2.43 3.25

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4. WORKING CAPITAL: Months Values % Margin Bank Consumption Amount Finance Raw Materials 0.75 0.44 25% 0.11 0.33 Consumables 1.00 0.06 25% 0.02 0.04 Finished goods 0.25 0.29 25% 0.07 0.22 Debtors 0.50 0.73 10% 0.07 0.66 Expenses 1.00 0.50 100% 0.50 0.00 2.02 0.77 1.25 5. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 2.55 Sales 23.33

11%


49%


72%

9


FC x 100 7.25 80 BEL = FC +P 11.24

x 100

x 100


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