V- Belts and Fan Belts 11,500
of various sizes, (per annum) worth Rs. 6900000
Uploaded on
:
22nd December 2006
Introduction
With the rapid industrial growth in India, the
demand for V-Belts and Fan Belts is increasing
day by day. V-Belts are largely used in single
or multiple form for automobiles, domestic and
commercial equipment and in industrial drives
for a wide range of horse power extending upward
from a fractional value.
Market Potential
There is a good scope for starting new units
in this line. V-Belts drives are becoming increasingly
popular because of the trend towards individual
drives which are efficient and easy to maintain.
Basis and Presumptions
i. The estimates are drawn for a production capacity
generally considered techno-economically viable
for a model type of manufacturing activity.
ii. The information supplied is based on the
standard type of manufacturing activities utilizing
conventional techniques of production.
iii. The cost of land and building, machinery
and equipment, rawmaterials and selling price
of the finished products etc. are those generally
obtained at the time of preparation of project
profile and may vary depending upon various factors.
iv. Whereas some names of suppliers of machinery
and equipment, raw-materials are indicated at
the end of the profile, these are by no means
exclusive or exhaustive.
Implementation Schedule
In the project, land and building has been taken
as rented and as such there is no problem of acquisition
of land and other formalities. The entire plant
and machinery and other equipments have to be
purchased and installed. It may take about 3 to
6 months on an average for a unit to go into regular
production.
Technical Aspects
Process of Manufacture
Rubber along with other chemicals and fillers
is compounded on a mixing mill. The compound is
taken in a sheet form in varying thickness based
on the type of V-Belts. Tyre cords are dipped
in a dipping tank. Canvas is coated with rubber
solution on a spreading machine and cut into sizes.
Then the rubber compound sheet is taken on a forming
machine. The rotating former round in shape comes
in various sizes of diameter. The rubber sheet
thus formed is followed by cord winding, rubber
sheet, and so on as per specifications. When the
forming is completed, it is cut into V-belts.
These V-belts are removed from the former and
each belt is wrapped with the coated canvas on
a wrapping machine. These belts are mounted on
split pulley and thus a number of pullies are
stacked on each other and firmly bolted. The bolted
pullies are wrapped tightly with a canvas. Then
these are placed in a vulcaniser with a boiler
attached to it. The belts are then marked and
packed for marketing.
Financial Aspects
A. Fixed Capital
(i) Land and
building
Total Area
2000 sq. mtrs.
Built-up Area
1000 sq. mtrs.
Rent
30000 per month
(ii) Machinery and Equipment
Description
No.
Value (Rs.)
a. Rubber Mixing Mill 12 inches ×30
inches, with 25 H.P. motor and reduction gear
1
400000
b. Vulcanising Chamber
1
50000
c. Hydraulic Presses with pump motor and
other accessories
1
250000
d. Spreading machine 28 inches width
1
60000
e. Churning Mill 100 Lit. capacity
1
40000
f. Boiler 100 Kgs. Evp. Capacity
1
500000
g. Belt Building unit
2
50000
h. Testing equipments and Electrification
75000
i. Installation charges
200000
Cost of Moulds/fixtures
50000
Cost of office equipment and Working Tables
etc.
100000
(iii) Pre-operative Expenses
100000
Total Fixed Capital
1875000
B. Working Capital (per month)
(i) Personnel
Sl. No.
Designation
No.
Salary (Rs.)
Value (Rs.)
1.
Manager
1
14000
14000
2.
Accountant-cum-Cashier
1
5000
5000
3.
Storekeeper
1
4000
4000
4.
Clerk-cum-Typist
1
4000
4000
5.
Peon
1
3000
3000
6.
Chemist
1
5000
5000
7.
Skilled Worker
5
3000
15000
8.
Unskilled Worker
5
2500
12500
Total
62500
Prequisites @ 22% of salaries
13750
Total
76250
(ii) Raw Materials (per month)
(Rs.)
i. Natural Rubber 1500 Kg. @ Rs. 80 per
kg.
120000
ii. Stearic Acid 30 kg. @ Rs. 55 per kg.
1650
iii. Zinc Oxide 450 kg. @ Rs. 85 per kg.
38250
iv. Carbon Black 135 kg. @ Rs. 60 per kg.
8100
v. Anti-oxidant/accelerator 60 kg. @ Rs.
325 per kg.
19500
vi. Sulphur 75 kg. @ Rs. 12 per kg.
900
vii. Processing aids like Paraffin Wax,
Splindle Oil etc. 50 kg. @ Rs. 60 per kg.
3000
viii. Canvas 1000 metres @ Rs. 60 per kg.
60000
ix. Packing material
15000
Total
266400
(iii) Utilities (per month)
(Rs.)
i. Power
6000
ii. Fuel
10000
iii. Water
5000
Total
21000
(iv) Other Contingent Expenses
(per month)
(Rs.)
Rent
30000
Postage, stationery
4000
Telephone
5000
Consumables
3000
Repair, maintenance
5000
Transport charges
8000
Advertisement and publicity
10000
Insurance
5000
Sales Expenses
20000
Taxes
8000
Miscellaneous expenses
8000
Total
106000
(v) Total Recurring Expenditure (per
month)
(Rs.)
a. Salary and Wages
76250
b. Raw-materials
266400
c. Utilities
21000
d. Other contingent expenses
106000
Total
469650
C. Total Capital Investment
(i) Fixed Capital
1875000
(ii) Working Capital (for 3
Months)
1878600
Total
3753600
Machinery Utilisation
The proposed project under reference is based
on a single shift basis with 8 hours working per
day. But effective working hours will be 6 hours
per day on single shift basis for calculation
purposes i.e. on an average working at 75% utilization
of machinery.
Financial Analysis
1. Cost of Production (per year)
(Rs.)
Total recurring cost
4915800
Depreciation on machinery and equipment
@ 10%
172500
Depreciation on moulds and fixtures @ 25%
12500
Depreciation on office equipment @ 20%
20000
Interest on total investment
@ 12%
372474
Total
5493274
2. Turnover (per year)
(Rs.)
By sale of V-Belt and 11,500
metres fan Belt of @ Rs. 600 assorted sizes
per metre
6900000
3. Net Profit (per year)
6900000 - 5493274
=
1406726
4. Rate of Return
=
Net profit ×100
-------------------
Turnover per year
=
1406726
-------------x100
3753600
=
37.4%
5. Net Profit Ratio
=
1406726
-----------x100
6900000
=
20.3%
6. Break-even Point
Fixed Cost
(Rs.)
a) Depreciation on machinery
and equipment, tools, Fixtures and office
equipment
205000
b) Rent
30000
c) Interest on total capital
investment
372474
d) Insurance
60000
e) 40% of salary
and wages
348720
Other contingents excluding
rent and insurance
340800
Total
1356994
B.E.P
=
1356994
----------------- x 100
1356994 + 1406726
=
49.1%
Addresses of Machinery
and Equipment Suppliers
1. M/s. Premier Industry
Station Road, Sirhind,
(Punjab)
