| Product Code |
: |
41135 (V-BELTS) |
| Quality and Standards |
: |
41447 (FAN BELTS) |
| Quality and Standards |
: |
IS 2494 :1993 |
| Production Capacity |
: |
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)
2. M/s. Anant Industries
Bassi Road, Sirhind.
(Punjab)
3. M/s. Sunrise Industries
Railway Road, Srihind.
(Punjab)
4. M/s. Modern Tyre Moulds India Pvt. Ltd.
Bhagat Singh Street,
Paharganj,
New Delhi-55.
Addresses of Raw Material
Suppliers
1. M/s. ICI India Limited
Post Box No. 310,
Crescent House, Ballard Estate,
Mumbai-110001.
2. M/s. Bayer India Limited
Nagin Mahal,
Veer Nariman Road,
Mumbai.
3. M/s. Monsento Chemicals of India Ltd.
318, Asaf Ali Road,
New Delhi.
4. M/s. United Carbon India Limited
133, Mahatma Gandhi Road,
Mumbai-110001.
5. M/s. Kamani Metallic Oxide Limited
Nicols Road, Kamani Chamber,
Mumbai-110001.
6. M/s. Kilachand Devachand Co. Pvt. Ltd.
Rubber Dvn. 7,
Jamshedji Tata Road,
Mumbai-110020.
