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Being a student of T.Y.B.B.A.

each and every student has to undergone the


practical training in appropriate company as a part of syllabus, which is prescribed
by Saurashtra University. It is the time in which we can impart our theoretical
knowledge in practice.

In industrial training in the company. I have selected the topic from marketing
management in the study of Sales Promotion including product selling. In the case
of our activity in modern marketing is the most important device that finds the
needs and wants of the community and it tries to satisfy those need and wants
through the marketing functions.

I strongly agree with the practical training because practical training is very
essential to the knowledge and practical which cab is performed in practice. How
does it is implemented in practice?

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This to certify that Mr. Patel Sagar M., the student of T.Y.B.B.A. of this
collage has prepared this project report on “Spherical Roller Bearing” for the small
scale industries with the help of “V.D.M. Bearing Co.” independently and the same
under my supervision.

Place:-
Date:-

Prof. T.R.Hathi Principal


( T.T.Raiyani)

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It is really a much pleasure for me to prepare a product project report. At this
stage while studying in T.Y.B.B.A. project report is an important part of business
and it is in the interest of the entrepreneur to prepare the project report before he
starts the actual production.
It is my pleasant duty to express my profound gratitude and extreme regards to
Prof. T.R.Hathi under whose kind and pinpointed guidance, I was not able to
complete my project work in time, without whose learned and capable guidance and
encouragement, this work could not have been completed successfully.
I am also very thankful to S.S.I. office Rajkot and V.D.M. Bearing Co., which are
the real source of information of my project which help me a lot in the preparation
of the project report.
I would also like to thanks our principal Shri T.T.Raiyani for his kind co-
operation.

Patel Sagar M.

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☺ PROJECT SUMMARY
☺ PLANT CAPACITY
☺ RAW MATERIAL
☺ FINANCIAL ANALYSIS
☺ NAME AND ADDRESS OF SUPPLIERS

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INTRODUCTION
The development and importance of Small scale Industries has
increased immensely in this century. Generally, less capital is required in
small scale business, as compared to large scale organization . There is
great scope of expansion of small scale business this era. Where there is
exists a variety of needs, which gives rise to the development of newer
products each day. Thus, we can say that the small scale industries are an
essential part of the economy of the country.

The product to be concentrated here is the “Spherical Bearing”.


Spherical bearing is a very vital component in any rotating mechanism of
machinery. The purpose of the bearing is to reduce friction and
consequently wear of the contact points of the rotating components of the
machinery. It also conserve the energy and materials and increases the
efficiency and life of machinery.

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

 PROJECT AT GLANCE
 PROMOTER’S BACK GROUND
 PRODUCT AND IT USES
 MARKET POTENTIALS
 MANUFACTURING PROCESS
 PRODUCTION PROCESS IN STEP
 PLANT LOCATION AND PLANT JUSTIFICATION

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PROJECT AT GLANCE

 Unit’s Name :- S. M. Bearings


 Address for communication :- ITI Hostel Road,
Behind K. S. Diesels,
Rajkot .
 Type of Unit :- Proprietorship Firm
 Product :- Spherical Roller Bearing
 S.S.I. Registration No.:-
 Subsidy Registration No.:-

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PROMOTERS BACK GROUND

PROMOTER’S NAME: Sagar M. Patel


AGE :- 20 Years
EDUCATION QUALIFICATION :- B.B.A with Marketing
Management

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Justification of location

Location of the factory is an important factor affecting the profitability


of the business organization.
An entrepreneur must select an ideal location at the time of launching
the enterprise. An ideal plant location means a scientific selection includes nature
and type of the business operating advantages, economical factors and profit
orientation.
The cost of production and cost of distribution play an important role in
profit maximization. Even with adequate capital on hand, if the location is
unfavorable, will affect are profitability which may some times results into the
closed down of the unit.
It is preferable to set up bearing industry in Rajkot due to several factors.
The essential raw materials required for the manufacturing of bearings like inner,
outer, rollers, cage, washer, etc. are easily available from city itself as these raw
materials are made in Rajkot itself. The other major factor is that there is that there
is big market for bearing in Rajkot i.e. local market itself is very large. For e.g. a
large number of Oil engine industries existing in Rajkot and bearings are used in its
manufacturing.

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Product details

[1] Application:
- Bearing is a vital component in any rotating mechanism of machinery
- Bearing is used to design revolving mechanism from simple household
items to those used in space & shuttle

[2] Salient feature:


- Bearings reduces friction and consequently wear off the contact points of
the rotating components of the machinery.
- It also conserves the energy and materials and increases the efficiency
and life of the machinery.

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Market potential

In India the bearing industry can be traced to a little over 50 years. The first
unit to commence production was National Bearing Co. Ltd., JAIPUR. Some Small
Scale Units in PUNJAB and some other places also manufactured bearings. Bearing
Industry developed tremendously in small-scale sector during the late eighties and
beginning of nineties has mostly developed in Gujarat State and that too particularly
in Saurashtra Region.
The raw materials used for bearing are procured from Mahindra & Mahindra
Bihar Alloys, Special Sheets etc. As against global range 1,50,000 different types of
bearing near 70,000 different types of bearings are used in India. The indigenous
production of bearings is limited to about 700 types.
The demand of bearing from major sector of industries are as follows.

1. Material handling equipment 30%


2. Industrial plant & machinery 57%
3. Others 13%

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MANUFACTURING PROCESS

SAE 52100 rods are taken and blanks are cut and forged as per the size
of the bearings. After forging annealing is done to relieve internal stresses
developed during the forging operation. These annealed forgings rings are sent for
turning operation where turning of the outraces and inner cones is done. At all these
steps various dials, gauges and slip gauges are used for checking the accuracy. After
turning these heat treatment is carried out at 900c & after heat treatment chamfering
is done to relieve internal stresses treatment during the hardening operation.
All these operations are done in the ancillary units and these are called
as preliminary processes. Further, operations are done in the assembly units or
bearing manufacturing units. Where rough grinding & finish grinding of internal
and outer races is done followed by honing operation. After such operation sizes are
directly checked. After this, the assembly of the bearing is done. These assembled
bearings are frequently checked & are cleaned in centrifugal cleaning machines by
kerosene and finally oiled and packed in polythene bag sealed & then packed in the
packing boxes.

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PROJECT ENGINEERING

Production capacity

Name of the Rate Daily Monthly Prod. Total


Product (Rs.) prod. Prod. P.a. value
Units units units (Rs.)

Spherical Roller 180 500 10,000 1,20,000 2,16,00,000


Bearings
No. 22211

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FINANCIAL DETAILS OF THE PROJECT

Fixed Cost Details :-

(1) Land and Building :-

Open Space Shade Covered Total Monthly Tot. Amt.


Area Area Rate P.a.
(Rs.) (Rs.)
200 Square 600 Square meters 800 10,000 1,20,000
meters Sq. mt.

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(2) Machinery & Equipment :-

Name of the Quantity Electricity Total


Machine No. reg. In h.p. cost (Rs.)

Surface grinding 1 10 hp 4,00,000


Centerless grinding 2 5 hp 8,00,000
Bore grinding 2 3 hp 8,00,000
External grinding 2 3 hp 9,00,000
Honing machine 2 2 hp 6,00,000
Etching machine 1 1 hp 7,000
Belt grinding 1 1 hp 5,000
Centrifugal 1 1 hp 10,000
(Cleaning machine)
Lathe machine 4.5 1 2 hp 15,000
Drill machine 1.5 1 - 7,000

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Name of the Quantity Electricity Total
Machine No. Reg. In h.p. cost (Rs.)

Bench grinder 1 - 4,000


Hardness tester 1 - 10,000
Inspection, quality
Control equipment,
Gauges etc. - - 2,00,000
Tolls, spindles,
Fixtures. - - 50,000
Erection &
Installation - - 2,00,000
Furniture & office
Equipments - - 55,000

Pre-operative expensive 50,000

Total 41,13,000

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(3) Total Fixed Capital Investment:

Sr. No. Assets Total value

1 Land & Building 1,20,000


2 Machinery & Equipment 41,13,000

Total Fixed Cost of Project 42,33,000

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Working Capital Details
(1) Personnel:

Designation No. Salary Total (Rs.)

Manager 1 4,000 4,000


Supervisor 1 3,000 3,000
Accountant 1 2,000 2,000
Clerk-Cum-Typist 1 1,500 1,500
Storekeeper 1 1,500 1,500
Skilled workers 12 2,500 30,000
Semiskilled workers 5 1,500 7,500
Unskilled workers 2 1,200 2,400

Total 51,900
Prerequisites @ 15% of salary 7,780

Total 59,680

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(2) Raw Material:

Raw-Material (Per month) (Rs.)

Forgings 12500 sets @ Rs.45/- set 5,62,500


Rollers 4.75 lacks @ Rs.1=15/- per roller 5,46,250
Cages 25000 ( 2 cages in 1 bearing)
@ Rs.5/- per cage 1,25,000
Total cost of Raw material 12,33,750

(3) Utilities:-
Power consumption 5000 units @ Rs. 4=50 22,500

22,500

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(4) Other Contingent Expenses (per month):- (Rs.)
Rent 10,000
Postage & Stationary 1,000
Consumables like grinding wheel, 9,000
Kerosene, grease, cutting oil etc.
Telephone 2,200
Repairs & Maintenance 3,000
Advertisement & Publicity 2,000
Packing & Forwarding 7,000
Insurance 1,000
Traveling & Conveyance 4,000
Marketing & Sales 2,500
Miscellaneous expenses 1,000

Total 42,700

(6) Total Recurring Expenses (per month):- (Rs.)


Personnel 59,680
Raw material 12,33,750
Utilities 22,500
Other contingent expenses 42,700
Total 13,58,630

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Working capital for 3 months:-
13,58,630 x 3 = 40,75,890

TOTAL COST OF PROJECT

Sr.. No. Details Amt.

1. Fixed cost of project 42,33,000


2. Working capital for 3 months 40,75,890

Total cost of project 83,08,890

SALES
Details of sales product Spherical Bearing
Rate per piece Rs. 180
Quantity sold 1,20,000 pieces per annum
Total value of sales Rs. 2,16,00,000

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DETAILS OF MEANS OF FINANCE

Particulars Amt.
Owned capital (50%) 41,54,445
Borrowed capital (50%) 41,54,445

Total cost of project 83,08,890

Interest on borrowed capital (21%) 8,72,430

TOTAL COST OF PRODUCTION


(1) Raw Material:

Raw-Material (Per month) (Rs.)

Forgings 12500 sets @ Rs.45/- set 5,62,500


Rollers 4.75 lacks @ Rs.1=15/- per roller 5,46,250
Cages 25000 ( 2 cages in 1 bearing)
@ Rs.5/- per cage 1,25,000
Total cost of Raw material 12,33,750

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(2) Rent & Insurance:-
Rent Rs. 10,000 per month
Insurance Rs. 1000 per month

Total p.m. Rs. 11,000

Total p.a. 11,000 x 12 1,32,000

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(3) Salary & Wages:-

Designation No. Salary Total (Rs.) Total p.a.

Manager 1 4,000 4,000 48,000


Supervisor 1 3,000 3,000 36,000
Accountant 1 2,000 2,000 24,000
Clerk-Cum-Typist 1 1,500 1,500 18,000
Storekeeper 1 1,500 1,500 18,000
Skilled workers 12 2,500 30,000 3,60,000
Semiskilled workers 5 1,500 7,500 90,000
Unskilled workers 2 1,200 2,400 28,800

Prerequisites @ 15% 7,780 93,360

Total 59,680 7,16,160

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(4) Administration expenses:-

Sr. No. Details Monthly Yearly

1 Postage & Stationary 1000 12,000


2 Telephony 2200 26,400
3 Traveling conveyance 4000 48,000
4 Miscellaneous expenses 1000 12,000

Total 8200 98,400

(5) Selling & distribution expenses:-

Sr. No. Details Monthly Yearly

1 Advertisement & publicity 2000 24,000


2 Packing & forwarding 7000 84,000
3 Marketing & Sales 2500 30,000

Total 11,500 1,38,000

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(6) Repairs and maintenance:-
PERMONTH PER YEAR
Repair & main. Rs. 3000 Rs. 36000

Financial analysis
 Cost of production (P.A.)

Details (Rs.)

Total recurring cost per year 1,14,35,730


Depreciation on machinery &equipment10% 3,75,800
Depreciation on tools, fixtures, measuring &
Testingequipment20% 50,000
Depreciationonofficeequipment20% 11,000
Interestonfixedcapital18% 7,61,940
Interest on workingcapital20% 8,15,180

Total costof Production 1,34,49,648

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 Turn over (P.A.)

Details (Rs.)
Yearly sales of 1,50,000 pcs.@ Rs.190/- 2,16,00,000
Yearly sales of scrap 2,20,000

Total 2,18,20,000

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 Net profit:-
N.P. = Sales - Cost of production
(After tax) = 2,18,20,000 - 1,34,49,648
= 83,70,352 - Tax (29,29,623)
= Rs. 54,40,728

 Net profit ratio:-


N.P. x 100
NPR =
Sales

= 54,40,728 x 100

2,18,20,000

= 24.93%

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 Rate of return:-

ROR = N.P. x 100

Total cost of project

= 54,40,728 x 100

83,08,890
= 65.48%

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BREAK EVEN ANALYSIS

Particular (Rs.)

Rent 1,20,000
Depreciation on tools, fixtures, measuring, 50,000
And testing equipments
Depreciation on office equipments 11,000
Depreciation on machinery 3,75,800
Insurance 12,000
40% of salaries & wages 2,86,464
40% of other contingent expenses 1,52,160
(except rent and insurance)
Interest on borrowed capital 8,72,430

Total fixed cost 18,79,854

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Break even point = Fixed cost x 100

Fixed cost + Net profit

= 18,79,854 x 100
18,79,854 + 54,40,728

= 18,79,85,400
73,20,582
= 25.67%

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SUMMARY

Details (Rs.)
Raw material 12,33,750
Salary & wages 7,16,160
Repairs & maintenance 36,000
Rent 1,20,000
Depreciation 3,75,800
Administration expenses 98,400
Selling & dist. expenses 1,38,000
Total expenses 27,18,110
Sales 2,16,00,000
Sales of scrap 2,20,000
Net profit 54,40,728

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SUPPLIER OF MACHINARY
1. M/s. Solar Machine Tools,
C-16/7 Aji ind. Estate, Phase – 1,
Road E, RAJKOT (Centreless Grinder)

2. M/s Hi-life Machine Tools Pvt. Ltd


ITI Road, P.O. Kubernagar,
Naroda Wste AHEMEDABAD (Centreless Grinder)

3. M/s. Foldage Industries,


Atike Ind. Estate, Dheber Road, RAJKOT.

4. M/s Amba MachineTools ,


Station Road, SURENDRANAGAR

5. M/s. Alex Machine Tools,


8, Ground Wadi Ind. Estate, S.V.Road,
Goregoan (West), BOMBAY-62.

6. M/s Universal Machine Tools,


4, Paharam Estate, Bhaktinagar Udhyognagar,
RAJKOT.

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SUPPLIERS OF RAW MATERAILS
1. M/s New Heaven Steel Balls,
38, Saki Vihar Road, BOMBAY-72

2. M/s Needumbar Industries Pvt. Ltd.,


Plot No. A-156, Main Road,
Wagle Estate, THANE-400 604.

3. M/s Glob Industries Pvt. Ltd.


Bamanbor Ind. Estate, SURENDRANAGAR.

4. M/s Forge Brothers,


Shapar Ind. Estate, RAJKOT.

5. M/s Rolex Industries,


B/h. Glow Tech Pvt. Ltd.,
Gondal Road, RAJKOT.

6. M/s Roller Forge,


Near Atika Rubber Milk,
Vadagama Estate,
Dhebar Road, RAJKOT.

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