Industry Profile
and Market Assessment
The industry is ever growing one
and the demand for fasteners is directly related to
the growth of the industrial sector. Besides the availability
of cheap labour has also established a good export
demand for the product. Screws are being exported
to Middle East, Germany, U.S and other European countries.
Machine screws are being manufactured in both the
organized as well as unorganized sector. Some of the
well known manufacturers are, GKW, Laxmi precision
screws, Unbrako, Nettlefolds etc. There are numerous
manufacturers in small scale sector, with the concentration
being in Amritsar in Punjab.
Manufacturing
Process & Know How
The machine screws are manufactured
from carbon steel wires /rods. The material is fed
into the cold frging machine to form the head at one
end while the shank is drawn and cut at the other.
The head fins are trimmed and the thread is rolled.
The screws are then sent for slotting the head to
give it a cheese head shape. The formed screws are
then tumbled in a barrel to remove the burrs before
being galvanized or plated as per the finish required.
There are various standards available for quality
measures. Such as Standard nos. 4206, 1368, 2389,
1365 etc.
Know how is available with the machinery suppliers
as well as Govt. research laboratories.
The production capacity envisaged is 5000 kgs per
month.
The unit will require a power of 10KW.
Plant and Machinery
The industry is basically a mechanical
engineering one and requires mechanical working machines
such as Cold Heading machine, Head Trimming machine,
Thread Rolling machine, Screw head slotting machine,
Tools, dies, Accessories, attachments etc., Polishing
Barrel, Bench Grinder etc. all the items of plant
and machinery are indigenously available. The total
cost of plant and testing equipment etc. is estimated
to be approx. Rs. 7.56 lakhs.
Raw material and
Components
The basic raw material and components
required are indigenously available and comprise items
like, ICs, LEDs, Neon indicators, Transistors, Diode,
Thermistors, Resistors, Capacitors, Transformers,
Glass electrodes, PCBs, Push button assembly, cabinet
chasis, hardware etc. The total cost of raw material
and components is estimated to be about Rs. 56,000/-per
annum.
Land and Building:
For smooth operation of the unit it will require
a built up area of 400 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 6 persons.
| Technical staff |
self |
| Skilled & Semi
skilled workers |
4 |
| Office staff |
1 |
| Office helpe |
1 |
The annual salary bill is estimated to be around
Rs.2.52 lakhs.
Cost of Project
| |
Rs. lakhs |
| Land & Building
|
| Plant & Machinery
|
7.56 |
| Other assets
|
1.50 |
| Margin money
|
0.97 |
| Total |
10.03 |
Profitability
|
Rs. lakhs
|
| Sales (5000*12 kgs) |
30.00 |
| Sale of scrap |
1.20 |
| Total |
31.20 |
| Raw material (5400kgs) |
22.68 |
| Salary |
2.52 |
| Other expenses |
1.50 |
| Depreciation |
0.37 |
| Interest |
0.88 |
| Cost of production |
27.95 |
| Profit |
3.25 |
Requirement of
Working Capital
|
W.C Margin money
|
| Raw material |
15 days |
1.13 |
0.11 |
| Work in process |
7 days |
0.59 |
0.06 |
| Stock of finished goods |
1 month |
2.33 |
0.23 |
| Working expenses |
1 month |
0.44 |
0.44 |
| Sale on credit |
15 days |
1.30 |
0.13 |
| Margin money for W.C |
|
|
0.97 |
Break Even point
