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    Project Profile On Automobile Wires

    Uploaded by

    Girish
    The document provides details of a proposed project to manufacture automobile wires. The unit would produce 60,000 dozen wires annually. Key aspects of the project include: 1) Wires would be made to Indian Standard IS 1978 by twisting stainless steel wire and adding zinc ends. 2) Total capital investment is estimated at Rs. 2.19 lakhs including machinery, equipment, and working capital. 3) The unit would be profitable serving the large replacement market for automobile wires.

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    Project Profile On Automobile Wires

    Uploaded by

    Girish
    82 views8 pages
    The document provides details of a proposed project to manufacture automobile wires. The unit would produce 60,000 dozen wires annually. Key aspects of the project include: 1) Wires would be made to Indian Standard IS 1978 by twisting stainless steel wire and adding zinc ends. 2) Total capital investment is estimated at Rs. 2.19 lakhs including machinery, equipment, and working capital. 3) The unit would be profitable serving the large replacement market for automobile wires.

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    Automobile Wires

    Original Title

    Automobile Wires

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    The document provides details of a proposed project to manufacture automobile wires. The unit would produce 60,000 dozen wires annually. Key aspects of the project include: 1) Wires would be made to Indian Standard IS 1978 by twisting stainless steel wire and adding zinc ends. 2) Total capital investment is estimated at Rs. 2.19 lakhs including machinery, equipment, and working capital. 3) The unit would be profitable serving the large replacement market for automobile wires.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    82 views8 pages

    Project Profile On Automobile Wires

    Uploaded by

    Girish
    The document provides details of a proposed project to manufacture automobile wires. The unit would produce 60,000 dozen wires annually. Key aspects of the project include: 1) Wires would be made to Indian Standard IS 1978 by twisting stainless steel wire and adding zinc ends. 2) Total capital investment is estimated at Rs. 2.19 lakhs including machinery, equipment, and working capital. 3) The unit would be profitable serving the large replacement market for automobile wires.

    Copyright:

    © All Rights Reserved
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    of 8

    PROJECT PROFILE ON AUTOMOBILE WIRES

    NAME OF THE PRODUCT : AUTOMOBILE WIRES.

    PRODUCT CODE : 374846006.

    QUALITY & STANDARD : As per IS 1978.

    PRODUCTION CAPACITY : The production capacity of the unit at 75% capacity


    utilisation.
    Item Quantity Amount (In Rs.)
    Automobile 60,000 dozens 21,60,000/-
    Wires per annum

    MONTH & YEAR OF : February, 2011.


    PREPARATION

    PREPARED BY : MSME - Development Institute,


    Ministry of Micro, Small & Medium Enterprises,
    Government of India
    107, Industrial Estate, Kalpi Road,
    Kanpur-208012.
    Tele. 2295070, 2295071 & 2295073 (EPBAX)
    Tele. No. 2295072 (SENET & TRC)
    Tele/Fax No.: 0512- 2240143
    email: [email protected]
    Website: msmedikanpur.gov.in
    Introduction
    Auto control cables are widely used in various controls of two/three wheel
    vehicles. Twisting of desired/required number of S.S. wires, of standard wire
    gauge of different diameter into one cable makes these. The numbers of S.S.
    wires of standard gauge depends upon the end use of the auto control cables
    like brake wire, clutch wire, accelerator wire etc. Each type of cable is of
    different size depending upon the specific purpose of the cable. The S.S.
    standard gauge wires are twisted in the twisting machine and cut to the
    required length. One end of the cable is butted and dipped in the molten zinc to
    avoid ends opening and at the other end of the cable a Zinc stopper of required
    size/design is fixed by Die- casting process.
    The Auto control cables are the fast moving spares used in two/three wheel
    vehicles and have very good replacement market. These cables enable the
    driver to control the various vehicle functions, and have a very wide market all
    over the country. The machines, equipment and raw material for
    manufacturing these cables are easily available and the technology is fully
    indigenised. The Unit can be set up in all major cities or near the city area and
    requires very nominal investment in plant and machines.

    Market Potential
    Auto control cables have a very wide and never ending replacement market, as
    the various control cables have to be replaced in any Scooter, Motorcycle,
    Auto Rickshaw, Moped etc. These are always required by Mechanics and
    Service stations. Different cables for different end use are packed in printed
    poly bags and marketed in dozen packing through the Auto part dealers/shops.

    Basis and Presumptions


    The project report has been prepared keeping in view the following basis and
    presumptions while calculating the cost of project and that of production:
    1. Unit will run 8 hours per day for 300 working days in a year.
    2. Unit will manufacture all types of Auto Control Cables for two/three
    Wheelers for brake, clutch, accelerator etc.
    3. Poly bags are got printed as per the requirements from outside.
    4. Rates in respect of Machines and Equipment are based upon the rates
    quoted by a particular manufacturer.
    5. Rates of Raw material and other inputs are based upon those prevailing in
    local market.
    6. Unit will be running on single phase power motors.

    Technical Aspects

    Process of Manufacture

    S.S. wire of required standard wire gauge are reeled into the bobbins on the
    reel winder and loaded onto the bobbins holder of the wire-twisting machine.
    Now with the help of wire twisting machine the required number of S.S. wires

    1
    are twisted and converted into a single stranded wire of continuous length. The
    number of S.S. wires and gauge depend upon the type and use of Auto control
    cable to be made.
    The stranded/twisted cable thus made is cut with the help of wire cutting
    machine into the required size. One end of this wire is butted and dipped into
    molten Zinc to avoid opening of strands of the cable. At the other end of the
    cable a zinc stopper of required design/size is fixed with help of a die on a die-
    casting Machine. The cables thus made are checked/inspected and packed in
    printed poly bags for marketing.

    Implementation Schedule

    The implementation schedule for the project will be as under:


    i) Preparation of project report after getting current rates for Machines and
    Raw material.
    ii) Arrangement for shade (rented) and electricity connection.
    iii) Provisional Registration.
    iv) Arrangement of Finance and placement of orders for Machinery and
    Equipment.
    v) Procurement and Installation of Machinery & Equipment.
    vi) Procurement of Raw material.
    vii) Commencement of production.

    Process Flow Chart

    S.S wires
    -
    Reeling into Bobbins
    -
    Twisting on wire twisting machine
    -
    Cutting to required size on wire

    Cutting Machine
    -
    End Finishing and dipping into Molten Zinc
    -
    Flowering of other end and Stopper Casting
    -
    Inspection
    -
    Packing
    -
    store/Despatch

    Quality Control and Standards

    2
    The Bureau of Indian Standards has laid down following Indian Standard for
    Auto Control Cables IS 1978.

    Production Capacity
    Based upon the single shift working of 8 hours per day and taking 25 working
    days in a month, the production of the unit will be as under:-

    Production (per year) 60,000 Dozens

    Value Rs. 21.60 Lakhs

    Motive Power
    Power requirement for the unit will be 5 HP (approx.) with single phase
    supply.

    Pollution Control
    The production activities are very simple in nature and there is no pollution
    involved. However, while melting zinc provision for exhaust of gases be made
    through a small chimney and exhaust muffler.

    Financial Aspects

    A. Fixed Capital

    (i) Land and Building Amt. (In Rs.)

    It is proposed to have rented Building 2000.00


    of about 700 Sq. fts. covered area
    @ Rs. 2000 (per month)

    (ii) Machinery and equipments (proposed)


    Sl. Particulars Qty. Amount
    No. (In Rs.)

    1) Wire twisting machine 4 72000


    (19 bobbins-1 hp motor)
    2) Pressure Die Casting machine 1 32000
    3) Compressor (1 HP motor) 1 11000
    4) Size Cutter 1 1000

    3
    5) Flower Machine 1 5500
    6) Hand Press 1 3500
    7) Reel Winder 1 3000
    8) Grinder 1 3000
    9) Hand Cutter 2 1000
    10) Dies (For Die-casting) 6 27000
    11) Shearing Machine 1 1000
    12) Small Bobbins 100 1000
    13) Big Bobbins 20 1800
    14) Poly Bags sealing machine 2 1300
    15) Jigs Fixture and other tools etc. L.S. 10000

    Total 1,74,100

    Installation and transportation 26115


    charges @ 15%
    Total 200215

    Office Equipment and Furnitures 18785


    Total 2,19,000

    B. Working Capital (per month)

    (i) Salary and Wages

    Sl. Particulars Nos. Amount


    No. (In Rs.)
    1 Production supervisor 1 Self
    cum-Inspector
    2 Skilled Workers 2 6000
    3 Semi_skilled Workers 3 6000
    4 Un_skilled Worker-cum-Helper 1 1500

    Total 13500

    (ii) Raw Material

    Sl. Particulars Qty. Amount


    No. (In Rs.)
    1. SS Wire @ Rs. 40/ kg. 1800 kg. 72000
    2. Zinc Alloy @ Rs. 50/Kg. 150 kg. 7500
    3. L.P.G. cylinders 5 Nos. 2000
    4. Packing Material L.S. 6000
    (poly bags printed)

    4
    Total 87500
    (iii) Utilities (per month)
    Sl Particulars Nos. Amount
    No. (In Rs.)
    1 Power requirement- 5 HP 3357
    single phase supply
    Electricity Charges
    (5× 0.746×8×25×4.50)
    2 Other Misc. Expenses L.S. 1000

    Total 4357

    (iv) Other Contingent Expenses


    Sl. Particulars Nos. Amount
    No. (Rs.)

    1 Maintenance/Repair L.S 1000


    2 Postage and Stationery L.S 500
    3 Travelling and Conveyance L.S 2000
    4 Misc. and Insurance L.S 500
    Total 4000

    (v) Working Capital (per month)

    Sl. Particulars Amount


    No. (In Rs.)

    1 Rent 2000
    2 Raw Material 87500
    3 Salary/Wages 13500
    4 Utilities 4357
    5 Other Contingent Expenditure 4000

    Total 111357

    C. Total Capital Investment


    (i) Fixed Capital Rs. 2,19,000
    (ii) Working capital for 3 Months Rs. 3,34,071
    Total Rs. 5,53,071
    Say Rs. 5,53,000

    Financial Analysis

    (1) Cost of Production (per year)

    5
    Sl. Particulars Amount
    No. (In Rs.)

    1 Total Recurring expenditure 13,36,284


    2 Depreciation on Machines @ 10% 20,000
    3 Depreciation on Office 3,800
    Equipment @ 20%
    4 Interest on capital @ 16% 88,500

    Total 14,48,584
    or Say 14,48,500

    (2) Turn-over (per year)


    Sl. Particulars Amount
    No. (In Rs.)

    1 By sale of 60000 1800000


    Dozens of auto control
    cables of various types
    at an average
    rate of Rs. 30 per dozen

    Less sale expenses @ 5% 90000


    Total 1710000

    (3) Profit (per year) Rs. 17,10,000 - 14,48,500


    = Rs. 2,61,500
    (4) Profit on Sales 15.29%
    (5) Rate of Return 47.28%
    (6) Break-even Point
    Fixed Cost (In Rs.)
    Rent building 24,000
    Depreciation 23,800
    Interest on Capital 88,500
    40% of staff and labour 64,800
    40% of Other Contingent Exp. and Utilities 34,900
    Total 2,36,000
    B.E.P. = 2,36,000 × 100
    2,36,000 + 2,61,500
    = 48%

    6
    Addresses of Machinery Suppliers

    1. M/s. Lolita Manufacturing Works (Regd.)


    9340, Katra Ganga Vishan, Gaushala Road,
    Kishanganj,
    New Delhi-110006

    2. M/s. Ajit Wire Products


    Gokul Da Bagh, Near 100 Ft. Road,
    Amritsar-143006

    3. M/s. S. S. Sabharwal and Sons


    664, Military Road, Anand Parbat, Industrial Area,
    New Delhi-110005

    Raw Material
    Local Market.

    Note: Prices taken may vary as per local market situations.

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