Quantity
: 80000 Nos. (per month)
Value : Rs. 280000
Uploaded
on
:
January
2007
Introduction
The term Lamp means an artificial
source of light. There are different types of
lamps and auto lamps used for automobiles are
known as Auto Lamps. The Auto lamps are of different
specifications such as single filament, double
filament, 6 Volt, 12 Volt, 12 Watts, 24 Watts,
36 Watts etc.
The Auto Lamps consists of
tungsten filament mounted on lead-in-wire and
supported by molybdenum wire, which are fixed
on glass stem. The whole assembly is placed in
a vacuum glass shell and sealed with metal caps.
The main popular brands of auto
lamps sold all over U.P. State are COMET, AKAI
which are mostly manufactured by large/medium
industries. It is also possible to manufacture
auto lamps in small scale sector and can compete
with the existing popular brands in the market.
Market Potential
Due to rapid and tremendous
growth in automobile industry, daily some new
make Auto-vehicle is being introduced in the market
and still present day need finds sufficient scope
for so many other vehicles to come up. As the
auto lamp is the only source of light for vehicle,
it has a very good market. Further, it is used
for replacement purposes also.
Basis and Presumptions
i) The basis for calculation
of production capacity has been taken on single
shift basis on 75% efficiency.
ii) The maximum capacity utilization on single
shift basis for 300 days a year. During first
year and second year of operations the capacity
utilization is 60% and 80% respectively. The unit
is expected to achieve full capacity utilization
from the third year onwards.
iii) The salaries and wages, cost of raw materials,
utilities, rents, etc. are based on the prevailing
rates in the market. These cost factors are likely
to vary with time and location.
iv) Interest on term loan and working capital
loan has been taken at the rate of 12.5% on an
average. This rate may vary depending upon the
policy of the financial institutions/agencies
from time to time. It is assumed that total loan
seek from the bank is 75% of the total investment.
v) The cost of machinery and equipments refer
to a particular make / model and prices are approximate.
vi) The break-even point percentage indicated
is of full capacity utilization.
vii) The project preparation cost etc. whenever
required could be considered under pre-operative
expenses.
viii) The essential production machinery and test
equipment required for the project have been indicated.
The unit may also utilize common test facilities
available at Electronics Test and Development
Centres (ETDCs) and Electronic Regional Test Laboratories
(ERTLs) and Regional Testing Centres (RTCs).
Implementation Schedule
The major activities in the
implementation of the project has been listed
and the average time for implementation of the
project is estimated at 12 months:
Sl. No.
Activity
Period
(in Months)
1.
Preparation of project report
1
2.
Registration and other formalities
1
3.
Sanction of loan by financial institutions
3
4.
Plant and Machinery:
a) Placement of orders
1
b) Procurement
2
c) Power connection/Electrification
2
d) Installation/Erection of machinery/Test
Equipment
2
5.
Procurement of raw materials
2
6.
Recruitment of Technical Personnel etc.
2
7.
Trial production
11
8.
Commercial production
12
Notes
1. Many of the above activities shall be initiated
concurrently.
2. Procurement of raw materials commences from
the 8th month onwards.
3. When imported plant and machinery are required,
the implementation period of project may vary
from 12 months to 15 months.
Technical
Aspects
Process of Manufacture
The manufacturing process of
"Auto Lamps" is as below:
a) Cutting of glass tubes rods to size
b) Flare making of cut glass tube
c) Stem making out of flared glass tube and rods
d) Mounting of lead-in wires and support wire
on stem
e) Mounting of filament of stem assembly
f) Mounting of filament stem assembly in glass
shell and sealing
g) Fixing of metals cap
h) Soldering of lead-in-wires
The auto lamps manufactured
as per above steps are then tested on the lines
of IS1606:1979 and then packed for despatch.
Quality
Control and Standards
IS 1606:1979
Production
Capacity (per month)
Qty. :
75000 Nos.
Value :
Rs. 2,25,000
Motive Power:
10 kW.
Pollution Control
The Government accords utmost
importance to control environmental pollution.
The small-scale entrepreneurs should have an environmental
friendly attitude and adopt pollution control
measures by process modification and technology
substitution.
India having acceded to the Montreal Protocol
in September 1992, the production and use of Ozone
Depleting Substances (ODS) like Chlorofluore Carbon
(CFCs), Carbon Tetrachloride, Halons and methyl
Chloroform etc. need to be phased out immediately
with alternative chemicals/solvents. A notification
for detailed Rules to regulate ODS phase out under
the Environment Protection Act, 1986 have been
put in place with effect from 19th July 2000.
Energy Conservation
With the growing energy needs
and shortage coupled with rising energy cost,
a greater thrust in energy efficiency in industrial
sector has been given by the Government of India
since 1980s. The Energy Conservation Act, 2001
has been enacted on 18th August 2001, which provides
for efficient use of energy, its conservation
and capacity building of Bureau of Energy Efficiency
created under the Act.
The following steps may help
for conservation of electrical energy:
i) Adoption of energy conserving technologies,
production aids and testing facilities.
ii) Efficient management of process/manufacturing
machineries and systems, QC and testing equipments
for yielding maximum Energy Conservation.
iii) Optimum use of electrical energy for heating
during soldering process can be obtained by using
efficient temperature controlled soldering and
de-soldering stations.
iv) Periodical maintenance of motors, compressors
etc.
v) Use of power factor correction capacitors.
Proper selection and layout of lighting system;
timely switching on-off of the lights; use of
compact fluorescent lamps wherever possible etc.
Financial
Aspects
A. Fixed Capital
(i) Land and Building Rented (per month)
(Rs.)
200 sq. mtr. building area
5000
(ii) Machinery and Equipments
Sl. No.
Description
Qty.
Value (Rs.)
1.
Glass tube cutting Machine with
3/4 HP Motor and Switch
1
5000
2.
Flare making machine 10 head
with automatic feeder gas control valves and
burner and 1 HP motor and switch
1
38500
3.
Stem making machine:12 heads
with flare pusher annealer, Gas, control valves
Automatic Colouring with 1 HP motor and switch.
1
42500
4.
Sealing Machine: 12 heads with
needles gas control valve 1 HP motor and switch
1
43000
5.
Capping Machine 36 heads with
1 HP motor and switch
1
27000
6.
Exhaust Bench 24 heads with
purifying tower set, Gas Control Valve and
Vacuum and switch
4
125400
7.
Pree Focus Machine
1
7000
8.
Spot Welding Machine
4
80000
9.
Wire Cutter
1
1000
10.
Wire Bender
1
1000
11.
Cap Engarving Machine
1
1200
12.
Soldering set with Gas Heated
Burner
4
3200
13.
Air Blower with 1 HP motor
1
5000
14.
Vacuum
4
90000
Testing Equipments
15.
Ageing rack complete with regulator
selector switch, on and off switch, volt meter
alongwith 5 kVA multi tapped transformer
1
13,500
16.
Torsion Testing Machine
1
1,000
17.
Photometric Integrator 24"
dia with Control Panels
1
10000
18.
Vibration Testing Equipment
1
3000
Total
4,97,300
(iii) Electrification and installation
charges @ 15% on the costs of plant and machinery
Ready coil filaments of different
rating i.e. 6V, 12V 12W, 24W, 36 Watts at
average price of Rs. 95/1000 Pcs.
80000 Pcs
7500
ii.
Lead in wire @ Rs. 22/1000 Pcs.
1,50,000 Pcs
3300
iii.
Lamp caps of assorted ranges
@ Rs. 520 per 1000 Pcs.
80,000 Pcs
41625
iv.
Glass shells @ Rs.375/1000 Pcs.
80,000 Pcs
37500
v.
Solder wire @ Rs.35/Kg
45Kg
1575
vi.
Capping Cement @ 20/Kg
30Kg
600
vii.
Misc. chemicals and consumables
L.S.
400
Packing Material
L.S.
15,000
Total
107500
(iii) Utilities (per month)
(Rs.)
i. Power
1600
ii. Water
300
Total
1900
(iv) Other Contingent Expenes (per month)
(Rs.)
i. Rent
5000
ii. Postage and Stationery
500
iii. Repair and Maintenance
2000
iv. Transport and Packing
2000
v. Conveyance
1000
vi. Advertisement
2000
vii. Misc. Expenses
1000
Total
13500
(v) Total Recurring Expenses (per month)
(Rs.)
(i + ii + iii + iv)
214325
Say
214325
C. Total Capital Investment
Rs.
(i) Fixed Capital
Rs. 578800
(ii) Total Working Capital for 3 months
Rs. 642975
Total
1221775
1) Cost of Production (per month)
(Rs.)
i. Total Working Capital
214325
ii. Depreciation on plant and machinery
@ 10% of the cost of plant and machinery
4900
iii. Depreciation of tools and fixtures
@ 25% of the cost of tools and fixtures
40
iv. Depreciation on furniture, office equipments
etc. @ 20% of its cost
80
v. Interest on 75 % of total capital investment
@ 12.5%
9545
Total
228890
(2) Turnover (per month)
(Rs.)
Sale of 80000 Lamps @ Rs.3 per lamp
2800000
(3)
Net Profit (per month) (Before Income Tax)
=
Turnover - Cost of the Production
=
Rs. 2,80,000- 2,28,890
=
Rs. 51110
(4) Profit on
Sales
=
Net Profit x 100
---------------------
Turnover
=
51110 x 100
-----------------
280000
=
18.25%
(5) Profit on
Total Capital Investment
=
Annual Profit x 100
----------------------
Total Capital Investment
=
51110x 12 x 100
---------------------
1221775
=
50.2%
(6) Break-even Point
Fixed Cost (per annum)
(Rs.)
Rent
60000
Depreciation on machinery and
equipment @ 10%
49730
Depreciation on tools, jigs
and fixtures @ 25%
480
Depreciation on office equipment,
furniture @ 20%
960
Fixed Cost (per annum)
(Rs.)
Interest on 75 % of total capital investment
@ 12.5%
152721
40% of Salaries and wages
438840
40% of other contingent expenses and utilities
(excluding rent)
49920
Total
641481
B.E.P.
=
Fixed cost x 100
--------------------
Fixed cost + Profit
=
641481 x 100
----------------
641481 + 613320
=
51.12%
Additional Information
a. The Project Profile may be
modified/tailored to suit the individual entrepreneurship
qualities/capacity, production Programme and also
to suit the locational characteristics, wherever
applicable.
b. The Electrical Technology is undergoing rapid
strides of change and there is need for regular
monitoring of the national and international technology
scenario. The unit may, therefore, keep abreast
with the new technologies in order to keep them
in pace with the developments for global competition.
c. Quality today is not only confined to the product
or service alone. It also extends to the process
and environment in which they are generated. The
ISO 9000 defines standards for Quality Management
Systems and ISO 14001 defines standards for Environmental
Management System for acceptability at international
level. The unit may therefore adopt these standards
for global competition.
d. The margin money recommended is 25% of the
working capital requirement at an average. However,
the percentage of margin money may vary as per
bank's discretion.
Addresses of Machinery and Raw
Material Suppliers
Machinery
Suppliers
1. M/s. Basan Machine Tools Jawahar Colony,
Gurudwara Road,
Plot No. 1692, N. I. T.,
Faridabad-121001.
(Complete Plant)
2. M/s. Product Engineers
57/6, B. T. Road,
Phool Bagan,
Kolkata-700 002.
3. M/s. Hindustan Pump and Machinery Corpn.
3, N. C. Choudhary Road, Kasba,
Kolkata-700 042.
Addresses of Raw Material Suppliers
1. M/s. Jay Electric Wire Corporation
Ltd.
K. R. Sagar Road, Metagalli,
Mysore-570 016. (Tungsten Filaments)
