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SUMMARY

This document provides a project report for an automobile service and repair center. It discusses the market demand for such services due to increasing vehicle ownership. It outlines the management and promoters overseeing the project. Cost estimates are provided for equipment, furniture, and other startup expenses. The report also covers projected profits, economic viability, and concludes that the project seems feasible and viable.

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ADARSH PATTAR
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36 views5 pages

SUMMARY

This document provides a project report for an automobile service and repair center. It discusses the market demand for such services due to increasing vehicle ownership. It outlines the management and promoters overseeing the project. Cost estimates are provided for equipment, furniture, and other startup expenses. The report also covers projected profits, economic viability, and concludes that the project seems feasible and viable.

Uploaded by

ADARSH PATTAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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A

PROJECT REPORT
ON
AUTO SERVICE
AND
DECORS
INTRODUCTION

Automobile repairing and servicing is a most commonly known activity in almost all
urban areas where all types of motor vehicles like cars, buses, lorries, jeeps, etc are
given for service and repairs. Regular maintenance and servicing of vehicles is
required for safe driving and durability of the vehicles. Improper maintenance of
vehicles, present conditions of roads, irresponsible driving, using cheaper spare
parts, etc are the main reasons to send the vehicles for repairs and maintenance
. Service station is the most essential unit to vehicle users. This unit can be
established in urban, semi-urban and village are to meet the local requirement
. Candidates having good experience or qualified persons can start this unit with low
Investment.

PROMOTER & MANAGEMENT

The promoter is reported to have good financial standing presently. The Promoters is
actively associated with the implementation of the project. Promoter is over all in
charge of the working of the unit.

MARKET AND DEMAND

There is good demand for automobile service center due to increase in the number
of vehicles day to day. After implementation of globalization and privatization, many
multi-national companies competing with each other and introduced many models of
4-wheelers and 2-wheelers. Besides, the purchasing power of the people also
increasing considerably and it becomes fall under necessary item in the cities/urban
areas especially for business persons and salaried persons. Now a day, the middle
class persons are also maintaining 4-wheelers/2-wheelers due to affordable price
and changing habits of the consumers. Hence, there is a good demand for setting up
of servicing and repairing units particularly in some important tribal centres.
MAJOR BENEFITS OF THE PROJECT

I. Easy availability of material.


II. Job opportunity for local people.

FURNITURE, FIXTURES ETC.

The total estimated cost of required Furniture & Fixtures would be Rs.- 15,000.00/-.

PREOPERATIVE EXPENSES

The total estimated cost of required Preoperative Expenses would be Rs.- 10,000/-.

PLANT, MACHINERY AND EQUIPMENTS

Plant, Machinery, Tools, and other equipment’s required for the proposed unit are
available indigenously. The various items required for installation of Rs.
8,50,000/- details as per quotation attached herewith.

QUALITY CONTROL

The concern proposed to set up above unit for which provision testing equipment
have been proposed in the project report.

TECHNICAL KNOW- HOW

The process for sale of products is simple and no sophisticated technology is


involved. There is no requirement of any type of technical knowhow.
TRANSPORTATION

The proposed location is connected by road and near to the city. Thus the unit is not
likely to face difficulty on account of transportation.

UTILITIES

a) Power:
The total connected load for the smooth operations of the unit has been
estimated and Electricity connection will be obtained as per required load
including lighting load if required.
b) Water:
The water will be available. Necessary provision for storage of water and water
supply has been made in the project cost.

MANPOWER

The unit would require total manpower of person of different category. The details of
salary/wages proposed to be paid together with annual Salary/wages bill is given in
separate annexure.

DEPRECIATION

The depreciation on fixed assets has been computed in annexure of this project
report in accordance with the admissibility of the same under the Income Tax Act,
1961.
TRAINING

Applicant has to complete two week EDP training specially designed for the purpose,
which will be organized by KVIC/KVIB/DIC or the institution organized by or under
the administration control of Minister of MSME or any other training center of repute
before disbursement of loan by the bank. After the successfully completion of EDP
training arranged by the KVIC/KVIB/DIC, the beneficiary will deposit his own
contribution in the bank as per the guideline of scheme.
CAPITAL SUBSIDY UNDER PMEGP

Unit is eligible to get capital subsidy under Prime Minister Employment Generation
Programme 25% of the total cost of the project (except cost of land). Total subsidy to
be received Rs. 2,75,000/-

TERM LOAN AND WORKING CAPITAL LOAN PMEGP SCHEME

The unit proposed to have Term loan UNDER PMEGP of Rs. 8,50,000/- & working
capital limit of Rs. 2,50,000/- Own contribution of unit will be Rs. 1,00,000/-, which is
TEN percent of total cost of project. The total project cost will be Rs.11,00,000/-.

PROJECTED INCOME/PROFITABILITY

The projected Income & profitability statement has been shown in the attached profit
& loss account. Projected Balance sheet for the next five years is also enclosed as
here for the reference.

ECONOMIC VIABILITY

Based on the projections attached it is observed that sufficient revenue shall be


generated through operations served & it indicates the economic viability of the
proposal. Hence the project can be considered as economically favourable and
viable.

CONCLUSION

Based on the grounds discussed aforesaid it is concluded that project is


economically & feasibly viable and should e considered favourably.

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