PROJECT PROFILE ON DESK TOP

PUBLISHING
FEASIBILITY REPORT
(2023-2024)
Submitted in partial fulfilment of the requirement for the award of

“DIPLOMA IN ELECTRICAL AND ELECTRONICS

ENGINEERING”

Submitted by

M. GOPIKA
22305982
Under the guidance of
DEEPADEVI
SR.LECTURER /EEE

DEPARTMENT OF ELECTRICAL & ELECTRONICS

ENGINEERING
SRI DURGADEVI POLYTECHNIC COLLEGE
R.S.M NAGAR, KAVARAIPETTAI-601206
GUMMIDIPOONDI TALUK, THIRUVALLUR DISTRICT.
 SRI DURGADEVI POLYTECHNIC COLLEGE
R.S.M NAGAR, KAVARAIPETTAI 601206
DEPARTMENT OF ELECTRICAL AND ELECTRONICS
ENGINEERING

FEASIBILITY REPORT
(2023-2024)

NAME OF THE STUDENT : M. GOPIKA

REGISTER NUMBER : 22305982

YEAR/SEM : III/V

NAME OF THE SUBJECT: Entrepreneurship and Start-Up

Practical

SUBJECT CODE : 4020570

PROJECT PROFILE ON : STEEL FABRICATION INDUSTRY

MARKS = ------------
40

Internal Examiner External Examiner

 BUSINESS PLAN FOR MSMEs
(Service Industries)
1.0
Name of the Firm STEEL FABRICATION INDUSTRY
MANUFACTURE OF STEEL
Name of Business/Project
FABRICATION
Location MADHAVARAM, CHENNAI-600 051.
Type of Organization
PROPRIETARY
(Proprietary/Partnership)
No.7,PARTHASARATHY
STREET,VASUKI NAGAR,3RD
Address (with Phone, e-
STREET, KK THALAI,
mail)
MADHAVARAM-600 051.
21eee14@sdpc.ac.in, 9789996023
Name of the Chief
M.GOPIKA
Promoter(s)
Date of Birth 27/06/2006
Names of Partners NIL

1.1EDUCATIONAL QUALIFICATION:

Course School/University/Institution Major Year of

(SSC/ Subject Passing
Diploma)
SSC SRI RAM DAYAL KHEMKA SCIENCE, 2020
 VIVEKANANDA
VIDAYALAYA SENIOR MATHS

SECONDARY SCHOOL
SRI DURGADEVI
DIPLOMA EEE 2023
POLYTECHNIC COLLEGE

1.2SPECIAL TRAINING:

Training Achievement/
Institute Duration
in Remark
LEARNED
ABOUT
SUB THERMAL POWER
15 DAYS VARIOUS
STATION PLANT,ENNORE
ELECTRICAL
COMPONENTS

1.3 COMPANY’S MAIN OBJECTIVE

THE GOAL OF STEEL FABRICATION IS TO TURN RAW

METAL INTO ITEMS THAT CAN BE USED IN
CONSTRUCTION, HOMES, ASSEMBLY LINES, AND
SEVRAL OTHER PLACES.

1.4 ADVANTAGES AND DISADVANTAGES OF THE

PRODUCT AND YOUR COMPANY
Price Competitive when compared to others
Quality High
Terms of delivery On time delivery as per customer need
Payment Methods Cash/ Credit/ Online
Customer Service Very user friendly
Others Nil

1. INTRODUCTION :
This report is a Detailed Feasibility Study on setting up a Steel
fabrication industry unit at manali, chennai Dist. The steel fabrication
market in india growing rapidly due to the country’s strong economic
growth and increasing infrastructure development. The demand for
steel fabricated products is expected to continue to grow in the growth
in the future, driven by the government’s ambitious plans to develop
the country’s infrastructure. The Indian steel fabrication market is
characterized by low entry barriers and a high degree of competition.
We also need to adopt efficient manufacturing processes and invest in
modern technology.

2. PLANT CAPACITY PER ANNUM:

The project is being design for the followings:
A). Production of total finished steel stood : 111.858 MT
showing a growth of 21.3% over the year.
B). Export of total finished steel stood : 12.799 MT,
up by 12.0% over the cply.
 C). Nos. of working days per annum : 270 days.
3. MARKET & DEMAND ANALYSIS:
The steel fabrication market size was valued at USD 21.18 billion in
2022. The steel fabrication industry is projected to grow from USD
22.36 billion in 2023 to USD 22.36 BILLION BY 2030, exhibiting a
compound annual growth rate (CAGR) of 4.72% during the forecast
period (2023-2030). Steel fabrication is defined as producing steel-
crafted structures and assemblies. This is referred to be a value-added
service since it uses multiple methods such as welding, machining,
shaping, and cutting to distort the raw material and build a completely
new structure. Welding, machining, and shearing are just a few of the
value-added services offered by steel fabrication facilities. Steel
fabrication provide value to the customers by offering a
comprehensive range of services in one location.
4. RAW MATERIAL:
The main raw materials required for manufacturing of steel
fabrication industry are iron ore, manganese, limestone, silica,
chromate, feldspar, scrap iron flux and fuel.

5. MANUFACTURING TECHNOLOGY
They include Immersive (AR/VR), Quantum, Block chain, Artificial
intelligence (AI), and Always on communication (5G/6G).
Automation equipment like robotic total stations, multi-access cutting
and milling machines, and computer numerical control (CNC)-driven
devices.
6. PROMOTION
In today’s ecologically aware times, steel wins hands down over
wood and plastic. In earthquakes and bad weather, steel offers safety.
Where the speed in construction is the key, steel stands tall. The
consumption of steel has been identified as an indicator of economic
well being of a country. It reflects the growth in infrastructure and the
maturity of the manufacturing industry of a nation. The present per
capita consumption of steel has been stagnating in the range of 30 kg.
Per annum, where as countries like china have surged ahead. The per
capita steel consumption in china is about 132 kg. Per annum and it
produces 220 million tonnes and imports another 30 million tonnes;
the total consumption being 250 million tonnes. However, steel
consumption and production in India is approximately 30 million
tonnes.

7. PRESUMPTION:
i) Efficiency & working hours considered 8 hours shift working basis,
at 75% efficiency Capacity utilization. (25 working days a month).
Time period for achieving full/ envisaged capacity utilization.
Approx. 7 to 8 months. Labour wages rate un-skilled worker @
Rs.115/- per day, skilled worker @ Rs.170/- per day. Interest rates for
fixed capital 12% interest rates for working capital 12%. Payback
period for the project around 5 years at 80% capacity utilisation. Land
and construction cost OR rental value per month (Approximate
details.) On rental basis @ Rs.2000/- per month.
9. PRODUCTION CAPACITY:

Capacity for domestic crude steel expanded from 137.97 MT in 2017-

2018 to 154.06 MT in 2021-2022. Compounded annual growth rate
(CAGR) of 3.7% during this five –year period.

10. UTILITIES (Per Month):

S.NO DESCRIPTION QUANTITY RATE(Rs.) AMT.(Rs.)
1 POWER 3.0 KWH 4/- 21600
2 WATER - LS 400

Total : 22000

Other contingent expenses (Per Month):

S.NO DESCRIPTION
1. Maintenance for premises 2000.
2. Postage & stationery 800.
3. Technical expenses 500.
4. Consumable etc 500.
5. Repairs & Maintenance expenses 500.
6. Transportation & Cartage expenses 2000.
7. Advertisement, Publicity & Travelling & Sales expenses
2000.
8. Insurance 700.
 Total recurring expenses (Per Month) = 0.33+3.26+0.22+0.10 =
Rs. 3.91.
 Working capital requirement for 3 months : Rs. 11.73 Lakh.
 TOTAL CAPITAL INVESTMENT:
1. Fixed capital : 15.000
2. Working capital : 11.730
Total: Rs. 26.730.

11. FINANCIAL ASPECTS:

1. Cost of production (Per Month)

S.NO Amt. DESCRIPTION RATE%

1. Total recurring cost 49.700
2. Description on @ 10% 1.520
production
equipment
(including
electrification)
3. Dep. On tooling & @ 25% 0.060
accessories and @ 20%
hand tools
Dep. On office
furniture & eqpt.
0.100
4. Interest on fixed @ 12% 2.550
investment &
working capital

2. Turn – over/Sale (Per Annum) Total: 53.93

12. MACHINERY AND EQUIPMENT:
 PRIME
S. QUANTIT
DESCRIPTION AMOUNT
NO. Y
(Rs.)

1 Heavy duty cut off

machine with 2 HP 1 22000
motor, starter etc.,

Drilling machine 12
2 mm cap. With 0.5 HP 1 17000
motor.
Portable
3 electric 2 2500
drill
Double ended bench
4 grinder 200 mm dia. 1 9000
With 0.75 HP motor

5 Buffing machines 2 10000

with 2 HP motors
6 Hand tools, work - 25000
benches etc.,
7 Office furniture and - 50000
equipment
Erection and
8 - 37000
installation charges
9 Pre-operative - 15000
expenses
Total : 500000

13. WORKING CAPITAL:

i). Personal (Salaries & Wages PM):
S.N DESIGNATIO NO.S SALARY/ Total
O N WAGE(p.m) Amt.
(Rs.)
1. Skilled worker 01 5000/- -
5000
2. Semi-skilled 03 4000/- -
worker 1200
3. Unskilled 03 3500/- -
worker (helper) 1050
0
4. Accountant/ Part 2000/- 2000
clerk Time

ii). Raw material & Direct consumables (Per Month):

S.NO DESCRIPTION QUANTITY AMOUN

UNITS T Rs.
1. Book type hand 144 meters 30000
rail 100 mm size
2. 25 mm Sq. Pipe 900 meters 40000
3. Flat 50 mm X 1.5 144 meters 11000
 mm thick
4. 112 mm X 50 mm 100 meters 18000
section
5. 63 mm X 38 mm 360 meters 40000
section
6. 50 mm X 25 mm 360 meters 14000
section
7. Handle section for 18 meters 2800
doors
8. Clips 1260 meters 25000
9. Glass sheet/ board 173 80000
3mm/ 4.5 mm Sq .meters
10. Chemical for LS 15000
anodising
11. Misc. items such LS 50000
as hinges, screws,
rubber beading,
tower bolts, locks,
wooden/plastic
plugs
TOTAL 325800.

iii). Utilities:
S.NO ITEM ANNUAL UNIT COST
REQUIREMENT COST (NU. IN
 MILLI
ONS)
1 POWER 3.0 KWH 4/- 21600
2 WATER - LS 400
TOTAL 22000

iv) LIST THE MACHINES USED:

 Lathe machine.
 Grinding machine.
 Drilling machine.
 Broaching machine.
 Shaper machine.
 Planner machine.
 Single – duty – roll – forming machine.
 Side – by – side roll – forming machine.
 Standardized roll – forming machine.
 Rafted machines.
 Double – headed machines.

* List of hand held wood cutting tools

 Overhead Cranes
 Quickies
 Gas Axe
 Beam drill line
 Arc welding
 Magnetic drill
 Hem band saw
  Drill press
 Iron worker
 Cold saw
 Oxy – Gas torches

14. IMPLEMENTATIONS SCHEDULE:

NAME OF ACTIVITY NO OF WEEKS

S.NO
PERIOD

1. Preparation of project
report : 5 weeks
1) Calling quotations 2 weeks
2) Scheme preparation
2. Filling entrepreneur
1 weeks
memorandum part -I
3. Financial arrangement
20 weeks
from
4. Purchase and
procurement of 8 weeks
machinery and equipment
5. Erection and
3 weeks
electrification
6. Recruitment of personal 4 weeks
15. FINANCIAL PROFITABILITY:

HEADS Year Year Year Year Year Year

1 2 3 4 5 6
Utilities 0.09 0.09 0.10 0.10 0.11 0.11
Salary 2.81 2.95 3.10 3.25 3.42 3.59
Benefits 0.42 0.44 0.46 0.49 0.51 0.54
Insurance 0.03 0.03 0.03 0.03 0.03 0.03
Repair &
0.56 0.58 0.61 0.64 0.68 0.71
maintenance
Other Admin
0.11 0.12 0.12 0.13 0.14 0.14
expenses
Production
51.45 59.54 67.65 67.89 68.12 68.36
Cost
Sales 68.40 79.80 91.20 91.20 91.20 91.20
Total interest 2.13 2.02 1.82 1.61 1.40 1.20
Cost of Sales 61.71 71.51 81.33 81.57 81.80 82.04

16. BREAKEVEN ANALYSIS (BEP):

Calculation of
1st Year 2nd Year 3rd Year
B.E.P
Salary 68.40 79.80 91.20
Office rental 61.63 71.44 81.26
Insurance 2.20 2.10 1.89
Repairs and
19.52 17.55 15.19
maintenance
Electricity 17.42% - -
17. ADDRESS OF RAW MATERIALS SUPPLIER:
1. Hindustan aluminium corporate Ltd.,
Industry house,
159, church gate reclamation,
Mumbai – 400020.
2. M/s. Premier metals and
Engg. Company, T.D.
Road,
Eranakulam – 682018.

1. FINANCIAL
ANALYSIS:4.
2. 1
3.