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Electronic Gas Lighters
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Product Code (ASICC)
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:
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77134
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Quality and Standards
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:
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The following BIS Standards
may be referred: IS 11514:1985 Piezo electric ceramic
cartridge for impact type gas lighters. IS 11519:1985
Piezo electric ceramic cartridge for squeeze type of gas
lighters. IS 11013:1984 Piezo electric ceramic elements
(impact type and squeeze type). |
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Production Capacity
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:
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Qty.: 30,000 Nos. (per annum)
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Value: Rs 15.00 lakhs
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| Uploaded on |
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March 2007 |
Introduction
The electronic gas lighter uses a piezo-electric
crystal. This crystal has a property to generate voltage when
it is mechanically deformed. It generates high voltage across
a spark gap which when in proximity to a gas would ignite
it. Gas lighters are being used by cooking gas users. It is
durable due to its performance and economical as compared
to the mechanical and electrical lighters. It does not require
battery for its operation. It is safer, economical, reliable
and quick in action. It requires virtually no maintenance.
Market Potential
The demand of any type of gas lighter
is directly related to the use of domestic gas connections
by various household in the country. However, users go in
for various types of gas lighting devices i.e. matches, electrical
or electronic gas lighter. The preference to use electronic
gas lighters is quite high because of its inherent advantages
stated above. Even existing gas users have been increasingly
switching over to electronic gas lighters. At present, there
are about 50 small scale units engaged in the manufacture
of electronic gas lighter with an average capacity of 30,000
to 50,000 per annum. The cost of gas lighter is very well
within the reach of users and therefore demand is increasing
day by day.
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 2nd year of operation
the capacity utilisation is 60% and 80% respectively. The
unit is expected to achieve full capacity utilisation from
the 3rd year onwards.
iii) The salaries and wages, cost of raw-materials, utilities,
rents etc. are based on the prevailing rates in and around
Solan (H.P.). 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 16% on an average, prevailing. This rate
may vary depending upon the policy of the Financial Institutions/Agencies
from time to time.
v) The cost of machinery and equipments refer to a particular
make/model and the 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) set up by the State Governments
and STQC Directorate of the Department of Information Technology,
Ministry of Communication and Information Technology, to manufacture
products conforming to Bureau of Indian Standards.
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. |
Name of Activity |
Period in Months (Estimated)
|
| 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 Sheet metal components/parts
are being manufactured with the help of hacks, saw machines,
hand press, drilling machine, spot welding machine, etc. Moulded
components are made on injection moulding machine. The metal
turned parts are made on lathe machine. Assembly, on piezo
electric ceramic cartridge along with sheet metal components/parts
and moulded parts are carried out and fitted in M.S. tubing/cases.
The complete assembled unit is tested for life cycle ignition
before it is sent for packing and despatch.
Quality Control and Standards
There is no BIS standard for this product,
however the following Specifications may be referred for quality:
IS 11514:1985 Piezo electric ceramic catridge for impact type
of Gas Lighters.
IS 11519:1985 Piezo electric ceramic catridge for squeeze
type of Gas Lighters.
IS 11013:1985 Piezo electric ceramic elements (Impact type
and squeeze type) for Gas Lighters.
It is envisaged that the gas lighter will be able to perform
the following operations:
1. To generate voltage above 10 KV.
2. Period of spark generation should not be less than 10 milli
second.
3. The gas lighters must be able to operate more than 30,000
times.
Production Capacity
|
Quantity (per annum)
|
Value (Rs.)
|
|
30,000 Nos.
|
15.00 lakhs
|
|
Motive Power
|
10 KVA.
|
Pollution Control
The Govt. 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 Sept. 1992, the production and use of Ozone Depleting Substances
(ODS) like Chlorofluoro Carbon (CFC), 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.
The following steps are suggested which
may help to control pollution in electronics industry wherever
applicable:
i) In electronic industry fumes and gases
are released during hand soldering/wave soldering/Dip soldering,
which are harmful to people as well as environment and the
end products. Alternate technologies may be used to phase
out the existing polluting technologies. Numerous new fluxes
have been developed containing 2-10% solids as opposed to
the traditional 15-35% solids.
ii) Electronic industry uses CFC, Carbon
Tetrachloride and Methyl Chloroform for cleaning of printed
circuit boards after assembly to remove flux residues left
after soldering, and various kinds of foams for packaging.
Many alternative solvents could replace
CFC-113 and Methyl Chloroform in electronics cleaning. Other
Chlorinated solvents such as Trichloroethylene, Perchloroethylene
and Methylene Chloride have been used as effective cleaners
in electronics industry for many years. Other organic solvents
such as Ketones and Alcohols are effective in removing both
solder fluxes and many polar contaminants.
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 Govt. 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 controlledsoldering and desoldering
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
(i) Land and building
The building is considered as rental with a rent of Rs. 2500
per month having covered area of 150 sq. mtrs.
| Sl. No. |
Description |
Ind/Imp. |
Qty. |
Value (Rs.) |
| 1 |
Precision type bench
lathe (4 1/2" feet bed with 2 HP motor) |
Ind. |
1 |
40,000 |
| 2 |
Fly press (No.31) |
Ind. |
1 |
4,000 |
| 3 |
Bench Drilling Machine
(1/2") |
Ind. |
1 |
4,000 |
| 4 |
Bench Grinder |
Ind. |
1 |
4,000 |
| 5 |
Shearing machine (10"
× 10" SWG) |
Ind. |
1 |
5,000 |
| 6 |
Injection Moulding machine
15 Gm |
Ind. |
1 |
5,000 |
| 7 |
Test Bench with Jigs
filted (Motorised) |
Ind. |
1 |
5,000 |
| 8 |
Spot welding machine
|
Ind. |
1 |
8,000 |
| 9 |
Cost of dies/mould/Tools
and Fixtures |
|
1 |
15,000 |
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Total
|
90,000 |
| |
Add, 10% of the total
cost of machinery, equipments towards electrification
charges |
|
|
9,000 |
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Total |
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99,000 |
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Cost of office equipment/furniture
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20,000 |
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(iii)Pre-operative Expenses
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10,000 |
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Total Fixed Capital |
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39,000 |
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Total
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1,29,000 |
B. Working Capital
(per month)
(i) Staff and Labour
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Sl. No.
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Designation
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No.
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Salary (Rs.)
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Total (Rs.)
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(a) Staff
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1
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Manager
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1
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5,000
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5,000
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2
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Sales Asstt.
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1
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2,500
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2,500
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3
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Clerks/Typists
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1
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2000
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2000
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4
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Peon/Watchman
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1
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1500
|
1500
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Total
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11,000
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(b) Labour
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|
1
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Skilled Worker
|
3
|
2000
|
6000
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|
2
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Semi-skilled Worker
|
2
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1500
|
3000
|
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Total
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9,000
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Total (a+b)
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20,000
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|
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Add 15% perquisites towards, PF,
Bonus etc.
|
3000
|
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Total
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23,000
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(ii) Raw Material Requirement (for 2500
Gas Lighters) (per month)
| Sl.No. |
Particulars |
Qty. |
| 1 |
Peizo electric ceramic
cartridge/slug |
2500 Nos. |
| 2 |
Copper Contacts |
2500 sets. |
| 3 |
M.S. Tubing |
500 Mtrs. |
| 4 |
Spring |
2500 Nos. |
| 5 |
Plastic powder/granules
|
15 Kgs |
| 6 |
M.S. Strip |
50 Kgs. |
| 7 |
Hardware |
2500 sets |
| 8 |
Packing materials |
2500 sets |
The average cost of raw material per set works out to be Rs.
27 per set.
Total Cost of Raw Material (per month)
for 2500
Nos.
Gas Lighters
67,500
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(iii) Utilities
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(Rs.)
|
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Power
|
3,000
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Water
|
300
|
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Total
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3,300
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(iv) Other Contingent Expenses (per annum)
| Sl. No. |
Particulars |
Value (Rs.) |
| 1 |
Rent |
2,500 |
| 2 |
Postage and Stationery
|
500 |
| 3 |
Consumable |
500 |
| 4 |
Repairs and maintenance
|
1,000 |
| 5 |
Conveyance and transport
|
3,000 |
| 6 |
Advertisement and Publicity
|
2,000 |
| 7 |
Insurance |
500 |
| 8 |
Miscellaneous expenses
|
1,000 |
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Total
|
11,000 |
| ( v) Total
Recurring Expenditure (per month) (i+ii+iii+iv) |
10,4800
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C. Total Capital Investment
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Fixed capital
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1,29,000
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Working capital (for 3 months basis)
|
3,14,400
|
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Total
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4,43,400
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Financial Analysis
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(1) Cost of Production (per annum)
|
(Rs.) |
| i) |
Working capital |
12,57,600 |
| ii) |
Depreciation on Machinery and equipment
@ 10% |
9,000 |
| iii) |
Depreciation on office equipment/
furniture @ 20% |
4,000 |
| iv) |
Interest on total capital
Investment @ 16% |
70,944 |
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Total
|
13,41,544 |
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Say
|
13,41,500 |
(2) Turnover
(per annum)
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Sl.No.
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Item
|
Qty.
|
Rate (Rs.)
|
Total (Rs.)
|
|
1
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Electronic Gas Lighter
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30,000
|
50
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15,00,000
|
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(3)
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Profit
|
1,58, 500
|
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(4)
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Profit Ratio
|
10.57%
|
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(5)
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Rate of Return
|
35.75%
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(6) Break-even Point
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Fixed Cost
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(Rs.)
|
|
(i)
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Annual Rent
|
30,000
|
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(ii)
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Depreciation
|
13,000
|
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(iii)
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Interest
|
70,944
|
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(iv)
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40% of salary and wages
|
11,04,00
|
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(v)
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Insurance/Taxes
|
6,000
|
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(vi)
|
40% of other contingent expenses
and utilities (excluding rent and insurance)
|
54,240
|
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Total
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28,45,84
|
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Say
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28,45,00
|
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B.E.P.
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=
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Fixed Cost ×100
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|
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-----------------------
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Fixed Cost + Profit
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=
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64.22%
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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 Electronics 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 thedevelopments 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/Equipment and Raw Material Suppliers
Machinery/Equipment
1. M/s. Perfect Machine Tools Co.
Sir P. M. Road,
Mumbai-400007.
2. M/s. Batliboi and Co.
G.T. Road,
Delhi-110006.
3. M/s. Jeet Machine Tools,
Corporation
Shardanand Marg,
Delhi-110006.
Raw Material
1. M/s. Calico Chemical and
Plastic Fibres Division
Anik Chambers,
Mumbai-400074.
(for Plastic Materials)
2. M/s. Central Electronics Ltd.
Industrial Area, Sahibabad,
Distt. Ghaziabad (U.P.)
(for Piezo Ceramics)
3. M/s. Brisk Electro Sales (P) Ltd.
394-A, Lamington Road,
Lamington Chambers,
Mumbai-400004.
(for Piezo Ceramics).
4. M/s Keltron Crystals Ltd.
Keltron Nagar, Mangatparamba,
P.O. Kalliasseri,
Cannanore-670562.
(for Piezo Crystals)
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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