Industry Profile and Market Assessment

Loud speakers have a wide market in the sense that these are used both in cheaper variety of instruments as well as the costly and sophisticated variety. Depending on the equipment type the sophistication in it the quality of loud speaker differs. The manufacture of loud speakers is not restricted and is mostly manufactured by small scale units. It has a good demand from OEM sector as well as the replacement sector. The pricing of the loud speaker depends on its quality, sophistication and end use. Almost all the consumer electronics equipment manufacturer has its own standards and accordingly the prices. The productions of loud speakers being in the unorganized sector its production statistical information and sales are not readily available.

Manufacturing Process & Know How

The voice coil is formed using enameled copper wire of requisite gauge. The soft iron core is magnetized using the magnetizing device. The other components comprising spider and paper cones along with the soft iron core and voice coil are fixed on the yoke and the basket assembly with a special adhesive. The edge of the basket is rubber lined and the leads are taken to each terminal eyelet. The assembled unit is tested for impedance, output, insulation, frequency response, acoustics etc.p

In the present proposal two types of loud speakers are proposed to be manufactured a) Hi-Fidelity loudspeakers, round and square type and general purpose loudspeakers round, square, rectangular and oval shaped types. The production capacity envisaged is 50,000 nos per annum at a sales value of Rs. 4,50,000/- The unit will require a power of 10 H.P.p

Plant and Machinery

Since the manufacturing process involved is basically an assembly oriented one the major plant and machinery involved include coil winding machine, oven, Magnet charger, Drilling machine small, Buffing/grinding machine, and the Testing equipment comprise Audio oscillator, Streo amplifier with player, Output meter, Multimeter, L.C.R Bridge, Accoustic Test meter, Testing panel. Besides the unit will also require moulds and other equipment costing around Rs. 6000/-. The total cost of plant and testing equipment etc. is estimated to be approx. Rs. 29,000/-. p

Raw material and Components

The basic raw material and components required are indigenously available and comprise items like, Weather proof voice coil paper, Enamelled self bonding wire upto 0.3 mm. Braided wire, special rivets, chemicals like plastic glue, epoxy resin, ceramic/permanent magnet blocks, paper cone including flexible surrounds, Dust caps, metal yoke and basket, etc.The total cost of raw material and components is estimated to be about Rs. 20,000/-per month.

Land and Building: For smooth operation of the unit it will require a built up area of 200 sq. mts. The space needed can be taken on rental basis.

Manpower

For smooth functioning of the unit the requirement of man power is expected to be around 12 persons.

Technical staff	self
Skilled & Semi skilled workers	10
Office staff	1
Marketing staff	1

The annual salary bill is estimated to be around Rs.0.84 lakhs.

Cost of Project

	Rs. lakhs
Land & Building
Plant & Machinery	0.29
Margin money	0.11
Total	0.40

Profitability

Rs. lakhs
Sales (50,000 nos)	4.50
Raw material	2.40
Salary	0.84
Sales expenses	0.49
Other expenses	0.03
Depreciation	0.04
Interest	0.03
Cost of production	3.83
Profit	0.67

Requirement of Working Capital

W.C Margin money
Raw material	15 days	0.10	0.01
Work in process	7 days	0.05	0.01
Stock of finished goods	15 days	0.16	0.02
Working expenses	1 month	0.07	0.07
Margin money for W.C			0.11

Break Even point