3

Auto Tubes and Flaps

PRODUCT CODE : 374894000

QUALITY AND STANDARDS : Auto Tubes and Flaps envisaged in the project
will be made as per Consumers Specifications
PRODUCTION CAPACITY : (a) Auto Tubes 1,50,000 numbers
(PER ANNUM) (b) Auto Flaps 1,00,000 numbers
MONTH AND YEAR : January, 2003
OF PREPARATION
PREPARED BY : Small Industries Service Institute
4th Floor, Harsiddha Chambers, Ashram Road,
Ahmedabad-380 014.
Phone Nos. 27540619, 27544248, 27543147
E-mail : [email protected]

INTRODUCTION B ASIS AND PRESUMPTIONS

The manufacture of auto tubes and 1. The estimates are drawn for a
flaps is possible well within the production capacity generally
investment limit of small-scale industries considered techno-economically
and a good number of such units are viable for a model type of
working successfully in different parts manufacturing activity.
of the country. Automobile continues to 2. The information supplied is based
be the most popular conveyance for the on standard type of manufacturing
masses and this is going to be so also activities, utilizing conventional
for a long time to come. In a developing techniques of production.
country like India, automobile forms an
3. The cost in respect of land and
important mode of transport.
building, machinery and
MARKET POTENTIAL equipment, raw materials and the
selling price of the finished
As auto continues to be the most products etc. are those generally
popular mode of transport both in urban obtained at the time of the
and rural areas, the demand for auto preparation of the Project Report.
tubes and flaps is likely to increase day-
4. Where as some names of
by-day. Moreover, this is a labour
manufacturers/suppliers of
intensive type of unit and can be located
machinery and equipments, raw
in rural areas solving rural unemployment
materials are indicated at the end
problem, Small Scale Auto Tubes and
of the profile, these are by no
flaps units can also function as ancillaries
means exclusive or exhaustive.
to establish large scale manufacturers.
18 A UTO TUBES AND FL A P S

IMPLEMENTATION SCHEDULE (ii) Machinery and Equipments

Sl. Description Nos. Value

In the project, land and building has No. (Rs)
been taken as rented and as such there i. Rubber mixing mill 14” × 36” 2 5,00,000
is no problem of acquisition of land and complete with reduction gear,
other formalities. The entire plant and safety devices, chilled cast iron
roll with 20 H.P. 3 Phase motor.
machinery and other equipments have
to be purchased and installed. It may ii. Tube extrusion unit complete 1 75,000
with reduction gear, size 6” dia
take about 3 to 6 months on an average with 10 H.P. motor.
for a concer n to go into regular
production. iii. Tube molding units complete 4 4,00,000
with hydraulic

TECHNICAL ASPECTS iv. Valve tightening machine 1 10,000

complete with electric
motor and other accessories.
Process of Manufacture
v. Valve nut punching machine. 1 15,000
Auto tubes are manufactured by
vi. Air removing machine complete 1 40,000
moulding method. First of all rubber with accessories.
along with other materials is properly
mixed in the two roller mill or a ban bury vii. Air compressor complete with 1 40,000
15 HP motor.
mixer. This compounded rubber is fed
into the extruder and the rubber viii. Moulding units for flaps complete2 1,50,000
with Hydraulic pump and other
compound takes the shape of long tube, controls.
then proper length of this green tube is
ix. Boiler rating capacity 150 kg./hr 1 2,50,000
cut and tube valve is fitted in this green
at 150 psi pressure complete
tube and the end of the tubes are jointed with all accessories and pump
by means of butt joining machine. This
x. Weighing balance and 2 40,000
green tube is vulcanized in the mould miscellaneous tools.
having air pressure inside. After proper
1. Thickness gauge tester 2,000
vulcanizing it is tested by filling specific 2. Hardness tester 5,000
amount of air inside for leakage, if any. 3. Tensile testing 40,000
4. Compression testing 5,000
Auto flaps are manufactured by the apparatus
pressure moulding technique in the 5. Impact tester 10,000
mould, after making the rubber 6. Abrador 10,000
7. Ross flex machine 10,000
compound on a two roll mixing mill. 8. Ageing block 20,000

xi. Electrification and installation 1,49,000

FINANCIAL ASPECTS charges @ 10% of cost of
machinery and equipment.
A. Fixed Capital
xii. Cost of office equipments/ 20,000
working table etc.
(i) Land and Building
xiii. Transformer and accessories 1,00,000
Total Area 250 Sq. m.
Total cost of machinery and 18,61,000
Covered Area 100 Sq. m. equipment

Rent Rs. 10,000 per month Total fixed capital 18,61,000

 A UTO TUBES AND FL A P S 19

B. Working Capital (iii) Utilities (per month) (Rs.)

(i) Personnel Salary and Wages (per month) I. Power 10,000

Designation No. (Rs.) II. Fuel 10,000

Manager 1 4,000 III. Water 2,000
Accountant/Storekeeper 1 2,500 Total 22,000
Clerk-cum-Typist 1 2,500
(iv) Other Contingent Expenses (per month) (Rs.)
Peon 2 3,000
Rent 10,000
Watchman 1 1,500
Technical Staff Postage and Stationery 1,000

Supervisor 1 2,500 Telephone 1,000

Skilled workers 10 15,000 Advertisement and Publicity 5,000

Unskilled workers 5 7,500 Transport charges 10,000
Total 38,500
Consumable stores 2,000
Perquisites @ 15% of Salaries 5,775
Repairs and Maintenance 2,000
Total 44,275
Insurance 1,000
Say 44,200
Taxes Miscellaneous expenditure 1,500
(ii) Raw Materials Including Packaging
Requirement (per month) Sales expenses 2,000

Particulars Indige- Qty. Rate Value Total 35,500

nous/ K g . pe kg. (Rs.)
Imp- (Rs.) (v) Total Recurring Expenditure (per month) (Rs.)
orted Staff and Labour 34,500
1. Smoked Ind. 8000 40 3,20,000 Raw Materials 5,64,300
Natural Rubber
Utilities 22,000
2. Synthetic Rubber do 2000 80 1,60,000
Other Contingent Expenses 36,000
3. China Clay do 2000 2 4,000 Total 6,56,800
4. Carbon Black do 1000 20 20,000
(vi) Total Working Capital (3 months basis)
5. Stearic Acid do 150 2 6,3000 Rs. 19,70,400

6. Zinc Oxide do 300 70 21,000 Total Capital Investment

7. Sulphur do 200 20 4,000 (i) Fixed Rs. 18,61,000

8. Valve Fitting do 14,000 10,000 (ii)Working Capital Rs. 19,70,400

Nos.
Total Rs. 38,31,400
9. Processing Oil do 2,000
10. Chemicals like Ind. 8,000 Machinery Utilization
Accelerator
antioxidant etc. The proposed project is based on
11. Packing material do 9,000
single shift basis with 8 hours working.
and other Effective working hours will be 6 hours
expenses per day/shift. On an average 75%
Total 5,64,300 machine utilisation is assumed per shift.
20 A UTO TUBES AND FL A P S

FINANCIAL ANALYSIS Fixed Cost (Rs.)

(e) Insurance 12,000
1. Cost of Production (per year) (Rs.)
(f) 40% of salary and wages 1,65,600
Total Recurring Cost (per year) 78,81,600
(g) 40% of other contingent expenses 1,20,000
Depreciation on machineries 1,86,100
including Rent and insurance
and equipment @10%
Depreciation on office equipment 4,800 Total 11,44,896
@ 20% Say 11,44,900
Interest on total investment @ 14% 5,36,396
(ii) Net Profit (per year)
Total 86,08,896
Say 86,08,896 B.E.P. F.C. × 100
=
F.C.+ Profit
2. Turnover (per year)
11,44,900 × 100
Item Qty. Rate Values =
25,36,000
(Rs.) (Rs.)
= 45.10%
Tubes 1,50,000 50 75,00,000
Flap 1,00,00 25 25,00,000
Addresses of Machinery
Total 1,00,00,000 and Equipment Suppliers
3. Net Profit (per year) 1. M/s. Premier Industries
Profit = Turnover – Cost of production Station Road, Sirhind,
= Rs. 1,00,00,000 – Rs 86,08,800
= Rs. 13,91,200 Punjab.

4. Net Profit Ratio 2. M/s. Anant Industries

Net Profit per year × 100
Basis Road, Sirhind,
= Punjab.
Turn Over
13,91,100 × 100 3. M/s. Anant Corporation
=
1,00,00,000
Railway Road, Sirhind,
= 13.9% Punjab.
5. Rate of Return
4. M/s. Sunrise Industries
Net Profit Per year × 100 Railway Road, Sirhind,
=
Total investment
Punjab.
13,91,100 × 100
=
38,31,400 5. M/s. Rubbermac Industries
= 36.3% Outer bye pass, Sirhind,
Punjab.
6. Break- even P oint (% of Total P roduction
Envisaged) 6. M/s. Sohal Engg. Works
(i) Fixed Cost (Rs.) Off. Haines Road,
(a) Depreciation on machinery and 1,86,100 Mumbai-140003.
equipment
7. M/s. Modern Tyre Moulds India (P)
(b) Depreciation on office equipment 4,800
Ltd.
(c) Interest on total capital investment 5,36,396
Bhagat Singh Street,
@ 14% per annum
Paharganj,
(d) Rent of building 1,20,000
New Delhi-110055.
 A UTO TUBES AND FL A P S 21

Addresses of Raw Material Suppliers Banglore.

1. Rubber Chemicals 4. Zinc Oxide
i. I.C.I. India Ltd. M/s. Kamani Metallic Oxide Pvt. Ltd.
Post Box No. 310 Nicols Road, Kamani Chamber,
Crescent House, Mumbai.
Ballard Estate, 5. Mineral Fillers and Synthetic
Mumbai. Rubber
ii. M/s. Bayer India Ltd. M/s. Kila Chand Deva Chand Co.
Nagin Mahal, Pvt. Ltd.
Veer Nariman Road, Rubber Division, 7,
Mumbai. Jamshed Ji Tata Road,
Mumbai.
iii. M/s. Monsanto Chemicals of
India Ltd. 6. Stearic Acid
318, Asaf Ali Road, M/s. Godrej Soaps (P) Ltd.
New Delhi 3/6, Delise Road,
2. Carbon Black Mumbai.
i. M/s. United Carbon India Ltd. 7. Rubber (Natural)
133, Mahatma Gandhi Road, Rubber Board, Kottayam,
Mumbai Kerala.
ii. M/s. Phillips Carbon black Ltd. 8. Tripur forest Development
Udyog Bhawan, Ballard Estate, Corporation
Mumbai Agartala.
3. Process Oil 9. Synthetic Rubber (SBR)
M/s. Indian Oil Co. M/s. Synthetics and Chemicals,
Unity Building, J.G Road, Bareilly, U.P.