Transistor Radio Receivers (AM/FM)

Introduction

Radio is one of the effective media used to entertain and educate the masses about different aspects of life, culture and languages in a developing country like ours where literacy level is very low. Considering the importance of this media, the Govt. have established a number of broadcasting stations throughout the country and introduced different programmes. The Govt. has also taken steps to reduce the cost of radio and abolished the radio licence to help the ordinary household possess a radio. The production of radio receiver is an assembly based industry and the technology involved is simple. The industry is highly labour intensive. The investment in Plant and Machinery and space requirement both are low. The assembly of radio receiver is economical in small scale sector due to low overhead expenditure compared to the organized sector. Radios/Car Radios (Low Cost up to Rs. 250) are reserved for manufacture in the small scale sector.

Market Potential

Transistor Radio receivers are very common in India. These radios are generally being used by lower income group people masses being one of the strongest means of entertainment for them. In the present state of economy in our country, a large section of the population especially in the rural areas can easily afford to buy a cheap radio set for their entertainment. The Government has already started the broadcasting FM channels in the country which will also boost the popularity of radio. Besides private FM broadcasting stations are channels to be established in near future further giving Philip to the market of Radio/Car Radios.

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 second year of operations the capacity utilization is 60% and 80% respectively. The unit is expected to achieve full capacity utilization from the third year onwards.

iii) The salaries and wages, cost of raw materials, utilities, rents, etc. are based on the prevailing rates in and around Jaipur. 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. 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 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:

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

A radio receiver consists of a RF section with mixer and oscillator, IF section with one or two amplifiers, a detector section and AF section with push-pull amplifier stages and loud speakers. As per the circuit design these stages are assembled on a printed circuit board using appropriate components and aligned . It is essential to test the bought-out components prior to assembly for avoiding any defective component going into the assembly. The ferrite antenna, speaker and other controls like volume control, tone control, tuning dial system, battery terminals/connectors etc., are mounted on the radio cabinet prior to mounting of assembled PCB in it. After mounting of above items, the PCB in the cabinet and necessary wiring has been made for interconnections. A plastic cabinet with an appealing front panel is widely used for housing the receiver. The assembled receiver is tested for performance before packing. The radio is packed in a cardboard box in such way that it should withstand shock and vibration during transportation.

Quality Control and Standards

The radio receiver should conform to the following specification :

Production Capacity (per annum)

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 controlled soldering 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
A. Fixed Capital

(ii) Machinery and Testing Equipments

B. Working Capital (per month)

(i) Staff and Labour

(ii) Raw Material Requirement (per month)

C. Total Capital Investment

Financial Analysis

(3) Profit (per annum) (Before Taxes)           Rs. 2,31,000

(4) Net Profit Ratio

(5) Rate of Return

(6) Break-even Point

B. E. P.

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 the developments 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 and Testing Equipment Suppliers

1. M/s. Quality Machine Tools
34, JC Road,
VISL Building,
Bangalore – 560 002.

2. M/s. Swastik Machine Tools
4, Lata Chambers,
Nashik - 422 002.

3. M/s. Applied Electronics Ltd.
A-5, Wagle Industrial Estate,
Thane – 400 604.

4. M/s. BPL (India) Ltd.,
84, MG Road,
Bangalore – 560 001.

5. M/s. Peico Electronics and Electrical Ltd.
Shivasagar Estate, Block ‘A’
Dr. Annie Besant Road,
Mumbai - 18.

6. M/s. Agronic Instruments (P) Ltd.
201, Shiv-Shakti Industrial Estate,
Mumbai - 86.

7. M/s. Syntronics
89-92, Industrial Area,
Naroda - 382 330.

8. M/s. Electronics Trade and Technology Dev. Corporation Ltd.
15/48, Malcha Marg,
New Delhi - 110 021.

Addresses of Raw Material Components

1. M/s. Electronics Trade and Technology Dev. Corpn. Ltd.
15/48, Malcha Marg,
New Delhi - 110 021.

2. M/s. Peico Electronics and Electricals Limited
Shivsagar Estate,
Block-A,
Dr. Annie Besant Road,
Mumbai - 12.

3. M/s. OEN Connectors Ltd.
Vyttila,
Post Box No. 2,
Cochin - 19.

4. M/s. Micropack Ltd.
Plot 16, Jigami Industrial Area,
Anekal Taluk,
Bangalore Distt. - 562 106
(For PCB)

5. M/s. Amar Radio Corporation
11/1, Thiglar Periyanna Lane,
SJP Road,
Bangalore - 560 002.

6. M/s. Globe Industries
69, Saddar Patrappa Road,
Behind SJP Road,
Bangalore - 2.

7. M/s. Champion Electronics (P) Ltd.
A-17, MIDC, Bhosari,
Pune - 411 026

Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com