Industry Profile
and Market Assessment
Since it is mostly a house hold
use product, the demand potential is ever growing
and more so rapidly with the popularity of LPG. The
number of LPG consumers is rapidly increasing.
At present there are reported to be more than 4million
consumers in the country. Nearly 70% of these are
in the urban areas. The popularity of LPG in semi
urban and rural areas is gradually increasing, with
the availability of gas cylinders the usage is expected
to grow at a rate of 25% per annum there by creating
a demand of at least 0.7 million pieces of lighters
per annum. Taking the price of single spark type as
Rs.30/- per pcs and that of multiple sparks as Rs.50/-
the turnover is estimated to be Rs 42.0 lakhs.
There are a number of manufacturers
in this field and many of them have captured a market
share. The quality of the products available is not
upto mark and consistency regarding performance and
life though guaranteed is not achieved. Thus better
quality products even at a slightly higher price will
find a ready market and preferred by customers.
Production
Capacity
A production capacity of 1.0 lakh pieces per annum
of single and multiple spark will be ideal with a
product mix 40% of capacity for impact type - single
spark and 60% of capacity for squeeze type - multiple
spark.
Manufacturing
Process & Know How
The process of manufacture is
simple assembly oriented and needs plastic moulding,
fabrication of precision parts, matching of tolerances
and inspection at every stage. It involves silvering
of the end faces of the piezoelectric element for
electrical contacts, formation of the spark electrode
assembly with appropriate insulation level and shock
wave absorbing material as well as the assembly of
striker and squeeze mechanism. The external case which
should be highly insulating type would be made from
injection moulded plastic parts. Selection of suitable
plastic material, and metallic parts should be properly
made. The manufacturers of ceramic piezoelectric elements
can be of help in proven assembly know-how.
Plant
and Machinery
The main plant and machinery involved
include precision machines for piece part fabrication
pressing, punching, and operations such as drilling,
late operations, grinding, element testing equipment,
insulation testers etc. This may need an investment
of nearly Rs. 9.0 lakhs. Dies, jigs and fixtures need
another Rs. 3.5 lakhs.
Raw material and Components
The total cost of raw material and components such
as end silvered piezoelectric ceramic elements, striker
assembly trigger assembly, blow moulded casing, insulated
cable, spark gas materials for insulation etc. come
to about Rs.15/- per piece for single element impact
type and Rs. 20/- for the two element squeeze type
mechanism.
Land and Building:
For smooth operation of the unit
it will require a built up area of 100 sq. mts. The
total cost is estimated to be Rs.3.0 lakhs.
Manpower
For smooth functioning of the
unit the requirement of man power is expected to be
around 15 persons. This includes production staff,
administrative persons. The annual salary bill is
estimated to be around Rs. 2.50 lakhs.:
Cost of Project
| |
Rs. lakhs |
| Land
& Building |
3.00 |
| Plant & Machinery
|
12.50 |
| Margin money
|
0.56 |
| Total |
16.06 |
Profitability
|
Rs. lakhs
|
| Sales (80%) |
33.60 |
| Raw material |
18.00 |
| Salary |
2.50 |
| Sales expenses |
3.75 |
| Other expenses |
1.85 |
| Depreciation |
1.42 |
| Interest |
1.27 |
| Cost of production |
28.79 |
| Profit |
4.81 |
Requirement of
Working Capital
|
W.C Margin money
|
| Raw material |
15 days |
0.75 |
0.19 |
| Work in process |
7 days |
0.43 |
0.04 |
| Stock of finished
goods |
15 days |
1.18 |
0.12 |
| Working expenses
|
1 month |
0.21 |
0.21 |
| Margin money for
W.C |
|
|
0.56 |
Break Even point
