PROJECT PROFILE ON ASSEMBLY OF VOLTAGE STABILIZER

Production Code (NEC) Quality and Standard Production Capacity

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369902009 IS : 9815 (part-I) - 1994 Qty-1500 Nos. per annum Value - Rs. 1,32,000,00/March, 2007 MSME-Development Institute Govt. of India 36, B/E, Gandhi Nagar Jammu Tawi-180004

Year of Preparation Prepared and Updated By

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Introduction

Servo Voltage stabilizer is one of the most essential electrical item which is used by people in their day to day life. This item is used in homes, commercial establishments, Govt. establishments, financial institutions, education institutions etc according to their requirement. The people are procuring every necessary item to meet the seasonal climate such as fridge, Air Conditioners Geysers & some high capacity electronic items etc., accordingly the load increases, necessitating the use of servo stabilizers ranging from 4- 6.5 KW commanly is used by the consumers.

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Market Potential

Exicutive voltage fluctuation are hazardires to castly eloctronic and electrical equipments like. T.V. sets, Refrigerations, Water Cooler, Washing Machine and scientific and medical eqipments etc. therefore to protect these 2.7 cms from damage due to wide line voltage fluetuation, the voltage stablizer has become essential to use with them. The demand for this item is propotionati to demand of Electronic applianse which is increasing day by day. Itemes of here will be substanliat demand growth in the years to come. There is also great export potential for this product.

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Basis & presumptions (i) (ii) The basis of calculation for assembling capacity has been on single shift basis on 75% efficiency The salaries & wages, cost of electrical goods, utilities, rent are based on prevailing rates. The cost factor are likely to vary with time & location

(iii) The rate of interest both for fixed & working capital has been taken @ 16 % but may vary depending upon the policy of the govt. (iv) The cost of machinery & electrical tools refer to a particular make/ model are approximate (v) The margin money as applicable to the general categories of entrepreneurs may be 25 % of project cost

(vi) The pay back period may be 5 years after the loan has been disbursed (vii) Rent for covered area for office & factory is 2000/ per month 4. Implementation Schedule

The major activities in the implementation of the project have been listed & average time for implementation on the project is estimated as 4 months . S.No. 1. 2. 3. 4. Major Activity Preparation of project report Registration & other formalities Sanction of loan by financial institution Plant & machinery Placement of orders Procurement Power connection/Electrificahi Other formalities Procurement of raw material Recruitment of technical person etc. Trail Product Commercial Production
1. 2. 3. Many of above activities shall be intiated concuriantly. Procurement of raw materials commences from the 8th Month on words. When imported plant & Machinery are required, the implementation period of product may vary from 12 months to 15 marks

Period (in months) (Suggestive) 1 1 3 1 Month 1 2 2 2 2 2 11 12

5. 6. 7. 8.
Note :

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Process of Manufacture : The manufacture process basically Consist of two stages @ Fabrication of cabinet, control panel etc. as per design (ii) Window of transformers and assembly of PCBs as per requirement Special transformer needed for thsis product wind in the factory itself. the critical components which go to makeup the product are tested to ensure that they meet the required specefications. The components are fixed and soldered on printed circuits Board according to the designe circuit, control & socket assembled individually. Control panel and chasis, fabricated in the factory and fitted together and the controls circuits and socket are mounted. The PCB is fitted on the chasis and all the inter connections are made. The manufactured items are tested as per acceptance test of PB.

2. 3.

Quality Standards :

IS : 9815 (Part - I) - 1994

Production Capacity per Annum Qty : Value : 1500 Nos. 1,32,00000/-

4. 5. 6. 1.

Motive Power : Pollution Control : Energy Conservation : Land and Building Buistt up area office, store Assembly & Testing Rent Payble/annum

5 kw

2000 sq.ft. 500 sq. ft. 1500 sq. ft. Rs. 24,000/-

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(ii)

Machinery and Equipments Ind./Exp. Qty. Nos. 1 2 1 5 Value Rs.

S. No. Description

1. 2. 3. 4. 5. 6.

Winding Machines Hand lever shearing M/c Hand Drill Machine Multimedia Testing equipments Misc.

Ind. Ind. Ind. Ind. Ind.

4,000/10,000/4,000/5,000/25,000/15,000/-

Total Other fixed Assets 7. Electridication charges @10% of cost of Machinery and equipments Office furniture, equipments & working Table etc. Tools, Tigs and fixure etc. Preoperative expanses Total Total fixed capital

63,000/-

6,300/-

8.

25,000/10,000/5,000/46,300/1,09,300/-

9. 10.

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9. (i)

Working Capital Per month Staff & Labour No of persons Salary per Month @ (Rs.) 5000/3000/3000/2000/Total Salary per month (Rs.)

S.No. Designation

1 2 3 4

Supervisor Technicians Clerk Helper/Peon Total

1 5 1 1

5,000/15,000/3,000/2,000/25,000/3750/28,750/-

Pre-requisite @ 15% of Salaries Total

(ii)

Raw Material per Month

(For one Stabilizer) S. No. Description Ind./Imp. Qty. Value Rs. 450/10/1495/4,000/150/200/30/20/20/-

1. 2. 3. 4. 5. 6. 7. 8. 9.

Tank Bobbin coil Core Copper Wire Power Relay Rotary Switch Relay Push Button Auto Cut plate

Ind. Ind. Ind. Ind. Ind. Ind. Ind. (119)

1 No. 1 23 Kg. 8 Kg. 1 No. 1 No. 1 No. 1 No. 1 No.

10. 11. 12. 13. 14.

Control transformer Strip Indicator Clamp Nut & Bolt & other misc items (LS) Volt meter Copper wire Cotton Tape Diode Capacitor Transformer oil Bake lite Sheet

1 No. 1 No. 1 No. 8 No. -

50/30/10/160/20/-

15. 16. 17. 18. 19. 20. 21.

1 No. 6 mt 1 Roll 2 Nos. 1 No. 13 Lt 1 No. Total

50/120/20/10/10/520/20/7,395/-

Raw Material for 125 Voltage stabilizers = Rs 9,24,375 (ii). 1. 2. 3. 4. 5. 6. Other Contingent Expenses per month Rent Postage & stationery Repair & Maintenance Insurance Telephone charges Transportation charges Total 2,000/200/500/1,000/1,000/1,000/5,700/-

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Utilities Per month Power Water Total 1 ,000/300/Rs. 1300/-

Total Recurring Expenditure per month = 28750+ 924375+ 5700+1300 (i + ii + iii + iv) = 9,60,125/ Total Capital investment Total Fixed Capital Working Capital for three months Total Financial Analysis Cost of production per annum 1 2 3. 4. 5. Total recurring expenditure per annum Depreciation on Machinery and equipment @ 10% Depreciation on Tools zigs & fixure @20% Depreciation on furniture equipments & working table etc. @ 20% Interest on total capital investment @ 16% Total OR SAY 1,95,21,500 6300/2,500/5,000/4,78,348/1,20,13,648/12013600/1,09,300/2880375/Rs. 29,89,675/-

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Turn over per annum Items Voltage Stablizer 6.5 kw Qty. No. 1500 Rate (Rs.) 8800/Total Sales (Rs.) 1,32,00000/-

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Profit

Turnover - cost of production : (Turnover/annum - cost production/annum) = 13200000/Profit Ratio - 12013600 = 11,86,400/-

Pr ofit / annum 11,86,400 100 = = 8 .9 % Turnover / annum 13200000

Rate of Return Fixed Cost 1. 2. 3. 4. 5. 6. 7. 8.

Pr ofit / annum 11,86,400 100 = 100 = 39.6% Total capital investment 29,89,675

Rent of Fixed cost per annum Depreciation on machinery @ 10% Depreciation on Tools, zij & fixure @25% Depreciation on furniture, equipment & working table @ 20% Interest on total capital Investment @ 16% 40% of Salaries Insurance

24,000/6300/2,500/5,000/4,78,348/1,38,000/12,000/-

40% of other contigent & utilities (Exeluding rent & insurances) 19,200/Total or say Rs. 6,61,348/Rs. 6,61,348/-

Fixed cos t 661348 BEP = Fixed cos t + Pr ofit 100 = 661348 + 1186400 100

= 35.7%
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BREAK EVEN POINT

Additional Information : a. The Project profite may be modified/tailored bto suit the individual entreprenurship quatition/capacity, production programme and also to limit the locational charactersties, wherever applicable. The electronics technology is undergoing rapid strides of change and there is need for regular monitoring of national and international technology scanario. The unit may, therefore, keep abreast with the new technology in order to keep them in pace with the developments for global competition. Quality today is not only confined to the product or service alone. It also extends to the quality mangement systems and ISO 14001 defines standards for environmental management system for acceptbility at international level. The unit may therefor adopt these standards for global competition. The margin money recommended is 25% of working capital requirement at an average. However, the percentage of margin mong may vary as per banks discretion.

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(i)

List of Suppliers Machinery & equipments. Machines : 01. M/s Automatic Electric Ltd. Rectifier House, P.O. Box No. 7103, Mumbai - 400031. M/s Batliboi & Co. TTK Road, Chennai - 600018. M/s Bharat Electronics & Electrical Roman House, 169, Bakbay Reclamation, Mumbai - 400020.

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Testing equipments : 05. M/s Eastern Scientific corporation B.K. Chowmuhani, Agartala. M/s Aplab Ltd. Eastern region, P-26/1, C.I.T. Road, Kolkata - 700014 M/s Toshminal Bros. (P) Ltd. 85 A, Sarat Bose Road, Kolkata - 26 M/s Scientific Suppliers & Services P - 39, Priricap Street, Kolkata - 26

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List of Suppliers of Raw Material 01. M/s Asian Electronic Ltd. 221, Dr. D.N. Road, Mumbai - 400001.000 M/s OEN India Ltd. Vytilla, P.B. No. 2, Cochine - 682-019. Pieco Electronics & Electrical Ltd. Raman House, 169, Bakbay Reclamation, Mumbai - 400020 L.S.
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