Fabrication Shop Proposal

Parts Covered: - Main Wash Unit + Utility Unit + Bike Platform

TOTAL COST OF PROJECT :
Rs.950000.00 Approx.
(1)Fixed Capital Rs.837000.00
(2)Working Capital Limit
Rs.93919.00
(3)EMPLOYMENT POTENTIAL : 3
•NORMAL WORKING HOUR : 8 HOUR

MAJOR BENEFITS OF THE PROJECT

I.Easy availability of material.

II.Major Cost Savings

FURNITURE, FIXTURES ETC.

The total estimated cost of required Furniture & Fixtures including electrical
fittings would be Rs. - 42960/-

PREOPERATIVE EXPENSES

The total estimated cost of required Preoperative Expenses would be Rs. - 30000/-.

PLANT, MACHINERY AND EQUIPMENTS

Plant, Machinery, Tools, Shed and other equipment’s required for the proposed unit
are available indigenously. The various items required for installation of
Rs. 6,92,000/-

QUALITY CONTROL

The concern proposed to set up above unit for which provision testing
equipment have been proposed in the project report.
 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.
•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 11 persons with 1 fabrication Manager of
different category.

Section Req Man Power Designation

Bike Platform 2 TA
Main Wash Unit 5 TA
Utility 4 TA

PROJECTED INCOME/PROFITABILITY

We will save up to 56000/mc if we set up the fabrication shop.

Section In house Out Sourcing Cost

Fabrication Cost Cost Difference
Bike Platform SS 304 @280/kg 53584.864 70019 16434.136
Main Wash Unit 29785.0672 52780 22994.9328
Utility 19092.93804 36508 17415.062
Total Saving 56844.1308

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

economically & feasibly viable and should be considered favourable
 FINANCIAL ASPECTS OF THE PROJECT
A. FIXED CAPITAL
I-Plant & Machineries:
Sr. NO. Description Qty UOM Amount (Rs.)
1 Space 2000 Sqft 20000

2 Welding Machine 4 Nos 600000

3 Grinder 4 Nos 48000

4 Cutter 2 Nos 24000

TOTAL 692000

II-Other Fixed Assets:

S. No. Particulars Amount (Rs.)
1 Furniture for unit like racks, chair etc. 50000
2 Other equipment like fan, electrification etc. 50000
TOTAL 100000

III-Preliminary & Pre-operative expenses:

S. No. Particulars Amount (Rs.)
1 Transportation of Machinery / Equipments 30000
2 Misc. Expenses ( Electric fitting , Board etc.) 15000
TOTAL 45000

TOTAL FIXED CAPITAL

S. No. Particulars Amount (Rs.)
1 Machinery and Equipments 692000
2 Other Fixed Assets 100000
3 Preliminary and Pre-Operative Expenses 45000
TOTAL 837000
 B. WORKING CAPITAL
I- Raw Material (Per Month): 78 machines/month
S. No. Particulars Qty. kg Rate (Rs.) Amount (Rs.)

1 Raw Material- Square Tube MS 42120 75 3159000

2 Square Tube SS 14274 280 3996720

TOTAL 7155720

II- Man power (Per Month):

S. No. Particulars Nos. Salary Amount (Rs.)
1 Skill Manpower 4 20000 80000
2 Semi-Skilled Manpower 7 10000 70000
TOTAL 150000

III- Utilities (Per Month):

S. No. Particulars Amount (Rs.)
1 Electricity 10000
TOTAL 10000

IV- Misc. or other expenses: (Per Month)

S. No. Particulars Amount (Rs.)
1 Repair & Renewal 5000
2 Other 5000
TOTAL 10000

TOTAL WORKING CAPITAL (Per Machine)

Sr.No Particulars Amount /Month Amount/Machine

1 Raw Material 7155720 91740

2 Manpower 150000 1923.077
3 Utilities 10000 128.2051
4 Misc. expenses 10000 128.2051
TOTAL 7325720 93919
DISCLAIMER

This project report is only for the purpose of reference and will give an idea
and guidance to set up the fabrication shop.

Department suggest to survey the market properly to find the actual cost of
fixed assets and working capital. The actual cost of the project or industry will
vary according to different elements like location, local regulation, financial
requirements of industry, capacity, type of industry, cost of resources and other direct
and indirect costs related to the project.

Prepared by- Monika Wani