1

PROJECT PROFILE

NAME OF PRODUCT:

FABRICATION OF ALMIRAH, RACKS ALMIRAH PARTS

STEEL AND

SPECIFICATION:

AS PER CUSTOMERS SPECN.

PRODUCTION CAPACITY: (PER ANNUM)

STEEL ALMIRAH: LOCKER PLATE: MONOGRAM: LOCKER PULLER:

750 NOS. 12000 PCS. 12000 PCS. 12000 PCS.

PROJECT COST:

Rs.15,00,000/-

TURNOVER:

Rs.35,69,000/-

PREPARED BY:

DEBADATTA RATHA B.Tech Mechanical Engineering

INTRODUCTION: Fabrication work of different items is gaining importance with industrialisation and human civilization. Various steel fabricated items such as almirahs, racks, book-cases, parts of almirahs such as monogram, locker plates, locker pullers handles its base, etc. are having very good prospects at this moment and being used in daily life of middle class and upper middle class people. It is also used in Govt. offices, private companies, etc. Steel furniture is being preferred over wood furniture due to its long durability, lightness in weight, portability, safety, economy in space utilisation, cleanliness etc. Proposed unit is being set up by Mr.Debadatta Ratha who is having B.Tech in mechanical Engineering qualification. He is young and energetic. Besides good qualification he is having good experience in such fabrication type in Tangi,dist.Khurda.He had been successfully engaged in promotion of one such unit at Khurda with name style of M/s.Maruti Technocrats Fabricators since last 3 years and the unit is being run successfully and meeting the demand of local people. This experience will definitely be helpful to him to promote new unit with additional items of manufacture. Depending on his market survey for different fabricated items the proposed unit will manufacture almirah and other fabricated items as per local demand. Besides fabricated items, it is proposed to manufacture some almirah parts such as Locker plate, Monogram, locker puller, etc. for which there is very good demand as there are many fabrication units for almirah etc. Presently these units procure these parts from outside market. Proposed unit will be able to meet their requirements and can be managed successfully by the promoter of the unit.

MARKET POTENTIAL: Demand for fabricated items such as almirah, racks, etc. is increasing with increasing of population and urbanisation. Almirah is almost used in every house, office, Govt. and private organizations etc. it has vast potential of marketing within the state and outside the state. There are many local fabricators of almirah in the state particularly in Rourkela, Cuttack, Bhubaneswar, Sambalpur, etc. Still there is good scope for setting new unit in such location like Tangi Khurda where hardly few such unit exist. Demand for almirah parts is almost every corner of the state for the manufacture of steel almirah. Presently the fabricators are procuring parts from Calcutta and other neighbouring states. The proposed unit will be in position to meet the growing demand of these items in the state. BASIS OF PRESUMPTION: 1. 2. The scheme is based on single shift basis and 300 working days per annum. The prices of machinery etc. are taken as those which are prevailing at the time of preparing scheme which may differ time to time and location to location. Full capacity utilization of the unit may start after four years. Interest rate @ 18% P.A. on total investment taken into consideration. Pay back period - 3 years. 25% of total investment will be contributed by the entrepreneur itself as margin money. Land and building initially taken on rent basis.

3. 4. 5. 6. 7.

IMPLEMENTATION SCHEDULE: Preparation of project report Selection of site Arrangement of finance Registration and clearance from various authorities Procurement of machinery Recruitment of staff TOTAL DURATION = 3 months month 4 months month 2 months month 11 months

TECHNICAL ASPECTS: 1) Process of fabrication of steel almirah etc. mainly involved first pressing sheet, cutting, bending, welding, joining of parts, finishing, painting etc. First desired sheets are pressed then desired size and gauge sheet are cut with the help of cutting machinery. Then sheets are bent with the help of bending machine and welded. Parts are fitted and finally finishing and painting work done. Other parts are made with the help of tool and jogs, After proper checking finished products are made ready for dispatch. Quality control: As per customers satisfaction. Production capacity (Per Annum): Sl.no. 1. 2. 3. 4. Item Almirah Lock plate Monogram Locker puller Quantity 500 pcs. 12000 pcs. 12,000 pcs. 12,000 pcs. Total 1500 KWH. Cost per piece (in Rs) 4200 32 2 1.25 Value 21,00,000/3,84,000/24,000/15,000/25,19,000/-

2) 3)

4) 5)

Approx. Motive Power: Pollution control:

6)

There is not much pollution in such type of unit. However, proper arrangement of sock of raw material and finished products are required to be maintained, wastage should be disposed properly, workmen specially welder, cutter, etc. should be provided protective mouthpiece, hand gloves, etc. Energy conservation: There is not much scope of energy conservation in such unit. However, unnecessary use of light, fan, exhaust fan, etc. should be avoided which may result in some saving of energy.

FINANCIAL ASPECTS: 1. 2. Sl.no. 1. 2. 3. 4. 5. 6. 7. 8. 9. Land and Building: Plant and Machinery: No. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Rate 1,20,000 7,800 10,400 20,500 12,500 10,900 7,400 16,500 4,400 9,500 6,500 8,200 1,28,500 12,000 3,000 Value (in Rs) 1,20,000lakh 7,500 10,400 20,500 12,500 10,900 7,400 16,500 4,400 9,500 6,500 8,200 1,28,500 12,000 3,000 3,77,800 85,825 Own

Description Sheet bending machine Stand drilling machine Sheet rewinding machine Arc welding machine Air compressor Sanding machine Hand drill Fly press Compressor pipe with Pilot spray gun 10. Pipe bending machine 11. Sheet shearing machine 12. Stand grinder 13. Power press 50 ton cap. Steel body (type with 5 HP motor) 14. Spot welding machine 15. HSS TOTAL TOOLS AND JIGS: 16.. Single station press tool for main body (for embossing, lancing and piercing) 17. Blanking tool for CAM (Die and punch) 18. Bending/forming tools for CAM 19. Piercing tool to CAM (Die and punch) 20. Blanking tool for Clamp (die and punch) 21. Piercing tool for clamp (die and punch)

1,00,000

1 1 1 1 1

40,000 20,000 18,000 18000 12000

40,000 20,000 18,000 18000 12,000

22. 23. 24.

Fencing tools for clamps 1 Piercing tools for supper plate 1 Two station programme tool 1 for Monogram block (CRCA) 25. Station programme tool for 1 monogram top (almirah) 26. Two station programme tool 1 for puller (CRCA) TOTAL Office furniture Electrification and installation GRAND TOTAL 3. 1. 2. 3. 4. Pre-Operative expenses: Preparation of project profile Consultancy charges Travel and transport Legal fee etc.

12,000 12000 26,000 20,000 26,000

12,000 12,000 26,000 26,000 26,000 2,95,825 20,000 68,800 7,76,600/-

5000 1000 2000 2000 Total = 10,000

Total Fixed Capital cost: (TFC) = 7,76,600 + 10,000 = 7,86,600/-

Working capital: 1. Sl.no . 1. 2. 3. 4. 5. Personnel (Per Month): Designation Manager Skilled workers Unskilled workers Supervisor Peon Perquisites @ 15% No. 1 3 4 1 2 Salary 3000 3000 1500 2500 1000 Total salary 3000 9000 6000 2500 2000 22,500 3225 25,725/-

2. 1) 1) 2) 3)

Raw Material (Per Month): M.S. sheets, pipes, angles in different gauge and size 1,50,000 C.R.Sheet, bush 35,000 Paints, primer, turpentine putty 15,000 Misc. Items 5,000 TOTAL = 2,05,000 Utilities Per Month: 4000 1000

3.

Electricity Water 4. 1. 2. 3. 4. 6. Other contingential expenses (Per Month): Stationery and postage Telephone Transportation Repair and maintenance Insurance

1000 300 3000 1500 1000 TOTAL = 6,800

5.

Working capital (Per month): 25,725 2,05,000 5,000 6,800 TOTAL = 2,42,525

Salary Raw material Utilities Other expenses

Working capital for 3 months: 2,42,525 x 3 = 7,27,575/-

Total capital Investment:

1. 2. Fixed capital (FC) Working capital (WC) 7,72,425 7,27,575 15,00,000

Total Capital Investment = Rs 15,00,000/-

Cost of production (Per annum): 1. 2. 3. 4. Total recurring expenses Depreciation on plant and machinery @ 10% Depreciation on office furniture Interest on total cap. Invt. @ 12% 29,10,300 68,800 4,000 1,80,000 TOTAL = 31,63,100/5. Turnover (Per Annum): 750 pcs. 12000 pcs 12,000 pcs 12,000 pcs @ 4200/@ 32/@ 1.25 @ 1.25 31,50,000 3,80,000 24,000 15,000 TOTAL = 35,69,000/PROFIT: Total sales cost of production: 35,69,000 - 31,63,100 = 4,05,900/say 4,06,000/NET PROFIT RATIO:

Steel almirah Lock plate Monogram Locker puller

RATE OF RETURN:

Break Even Analysis: 1. i) ii) iii) iv) v) Fixed cost: Depreciation on plant and machinery @ 10% Depreciation on furniture @ 20% 40% of annual salary 40% of other annual exp. Interest on total invt. @ 12% 68,800 4,000 1,08,000 32,640 1,80,000 3,93,440

Break Even Point BEP =

ADDRESSES OF MACHINERY SUPPLIERS: 1. 2. 3. 4. 5. 6. 7. 8. M/s.Machine Tools Traders, 57A, Thambu Chetty Street, Madras600001. M/s.Armstrong Smith Ltd., 45, Armenian Street, Madras-600001. M/s.Raja Machine Tools, 91, Thambu Chetty St.,Madras-600001. M/s.Shiv Machine Tools, 67, Armenian Street, Madras-600001. M/s.Vishnu Chakkara Machine Tools, 15, Francis Joseph St., Madras600001. M/s.Industrial Supply Syndicate, 121 Cuttack Road, Bhubaneswar751006. M/s.Central Tool Room & Training Centre, B-36, Chandaka Ind.Area, P.O.Patia, Bhubaneswar. M/s.The Eastern Engg. & Trading Co.(P)Ltd., 26, Elliot Road, Calcutta.