|
Auto Pistons
| Product Code |
: |
N.A. |
| Quality and Standards |
: |
IS 6331:1971
(Or as per Customer’s Specifications) |
| Uploaded on |
: |
February 2007 |
Introduction
The automobile Industry manufacturing
Motor Cycles, Scooters and Mopeds has made fast progress
with the liberalization of two wheeler policy in 1980. The
break-through for auto components came around the year1960
when a number of Small Scale Units started manufacturing
auto components like forgings, castings, sheet metal components
etc. The auto components industry has a wide range of components
and this project profile envisages the manufacture of graded
C.I. Auto Pistons.
Market Potential
The market potential for Cast Iron Auto
Pistons has increased during last three decades with the
development of automobile industries in the country. The
economic status of the public is improving and it is within
the capacity of every family to purchase at least a moped.
Basis and Presumptions
(i) For capacity utilization, it is
considered that 60% efficiency and 24 Hrs. per day plant
operation is required.
(ii) Four years required for achieving
full capacity utilization.
(iii) Labour and wages amount as per
local market rates.
(iv) Interest rate for fixed and working
capital is 12% per annum.
(v) The margin money requirement
for obtaining financial assistance is 30% of the fixed capital.
Implementation Schedule
Preparation of Project Report
| |
Activity |
Time Period |
| 1. |
a) Calling Quotations
b) Preparation of Report 2 weeks |
1 month |
| 2. |
Provisional Registration as SSI Unit
|
1 week |
| 3. |
Financial Arrangements |
3 months |
| 4. |
N.O.C. from Pollution Control Board |
1 week |
| 5. |
Purchase and Procurement of Machinery
and Equipments |
3 months |
| 6. |
Installation of Machinery and Equipments |
1 month |
| 7. |
Electrification |
1 month |
| 8. |
Recruitment of Staff and Workers |
1 month |
Technical Aspects
Process of Manufacture
The manufacturing process involves melting
of Pig Iron and graded scrap in cupola furnace. Green sand
moulds are prepared by mixing sand and molasses. Moulds
are dried and assembled with cores, molten metal when ready
is poured into the prepared and dried moulds. Castings after
cooling are taken out from moulds and runners, and the semi
finished castings are machined as per drawing. The detailed
process flow chart is as follows:
Incoming Inspection --> Sand Preparation
--> Moulding --> Shot Blasting --> Knock Out -->
Pouring Charging and Melting -->Fettling --> Inspection
--> Machining --> Cleaning --> Assembly -->
Despatch --> Packing --> Final
Inspection --> Testing.
Quality Control and Standards
Auto Pistons are produced to serve specific
mechanical properties, chemical composition and micro structure.
Accordingly, a close control of quality at each stage of
manufacturing is essential. Quality control methods usually
applied are carbon equivalent determination, hardness determination,
tensile strength test, determination of other alloying elements
by chemical analysis, etc.
Production Capacity
The production capacity in this scheme
is 600 tons of un-machined C.I. Auto Pistons. The capacity
is about 60% of the installed capacity on the basis of 300
days in a year.
Pollution Control
The process involves melting of Pig
Iron in Cupola Furnace and because of burning of coke pollution
occurs. The mixing of sand and fettling of casting is also
a cause of pollution in work-shed. In order to avoid/minimize
pollution, the chimney for outlet of burning gases/fumes
should be of proper height as per recommendations of Pollution
Control Board. Secondly, the work-shed height and ventilation
measures should be maintained as per standards framed for
industrial sheds.
Financial Aspects
A. Fixed Capital
| (i) Land and Building |
|
(Rs.) |
| Land - 4000 Sq. Mtr. |
@ Rs. 3500 per sq. Mtr |
1,40,00,000 |
| Foundry Shop, workshop, testing,
pollution control, D.G. room and electrical area, workers
room, Bore well and raw water system, laboratory, raw
material and finished goods storage, store and maintenance
room, Offices and staff rooms, car and cycle parking area
etc. |
2000 Sq. Mtr. @ Rs. 7500/ Mtr |
1,50,00,000 |
| Store Office Boundry Wall, Gate,
roads etc. |
|
10,00,000 |
|
Total
|
3,00,00,000 |
(ii) Machinery and Equipments
|
Sl. No.
|
Machine Name
|
Qty.
|
Rate
(In Rs.)
|
Amount
(In Rs.)
|
|
(A) Production Unit
|
|
1.
|
Cupola Furnace
|
1
|
18,00,000
|
18,00,000
|
|
2.
|
Sand Muller (Motorised)
|
1
|
2,00,000
|
200,000
|
|
3.
|
Sand Siever
|
1
|
50,000
|
50,000
|
|
4.
|
Pin Lift Type Moulding Machine
|
6
|
75,000
|
4,50,000
|
|
5.
|
Pneumatic Moulding Machine
|
2
|
1,00,000
|
2,00,000
|
|
6.
|
Snagging Grinder
|
1
|
50,000
|
50,000
|
|
7.
|
Bench Grinder
|
1
|
30,000
|
30,000
|
|
8.
|
Electric Core Oven
|
1
|
2,00,000
|
2,00,000
|
|
9.
|
Pillar Type Drilling Machine
|
1
|
1,00,000
|
1,00,000
|
|
10.
|
Lathe Machine
|
1
|
12,00,000
|
12,00,000
|
|
11.
|
Tapping Machine
|
2
|
1,00,000
|
2,00,000
|
|
12.
|
CNC Vertical Machining Centre
|
1
|
40,00,000
|
40,00,000
|
|
13.
|
Centre Lathe Machine
|
4
|
7,00,000
|
28,00,000
|
|
14.
|
Vertical Milling Machine
|
2
|
6,00,000
|
12,00,000
|
|
15.
|
Ultra Sonic Cleaning Machine
|
1
|
2,00,000
|
2,00,000
|
|
16.
|
Washing Machine
|
1
|
1,00,000
|
1,00,000
|
|
17.
|
Welding Machine
|
2
|
50,000
|
1,00,000
|
|
18.
|
Hand Drill Machine
|
2
|
2,500
|
5,000
|
|
19.
|
Screw Type Air Compressor
|
1
|
1,00,000
|
1,00,000
|
|
20.
|
Mould Boxes
|
L.S.
|
|
2,00,000
|
|
21.
|
Patterns and Foundry Tools
|
L.S.
|
25,000
|
50,000
|
|
22.
|
Platform Type Weighing Machine
|
1
|
50,000
|
50,000
|
|
23.
|
Material Handling Trolleys
|
6
|
5000
|
90,000
|
|
24.
|
Diesel Engine and fuel system, Bore well and raw water
system
|
|
|
10,00,000
|
|
25.
|
Pollution Control Equipment
|
1
|
5,00,000
|
5,00,000
|
|
26.
|
Office Furniture
|
L.S.
|
8,00,000
|
8,00,000
|
|
27.
|
Electrification/ Installation, excise, sales tax, freight,
transportation @ 30% of the total
|
|
|
4,702,000
|
|
Total
|
2,03,77,000
|
|
(B) Quality Control and Testing
Equipments
|
|
Total
|
5,00,000
|
|
Total (A + B)
|
2,08,77,000
|
|
(iii)
|
Pre-operative Expenses
|
Rs. 8,00,000
|
|
(iv)
|
Total Fixed Capital (i+ii+iii)
|
Rs.2,16,77,000
|
B. Working Capital (per month)
(i) Raw Material
|
Sl. No.
|
Description
|
Qty.
|
Rate (In Rs.)/MT
|
Amount (In Rs.)
|
|
1)
|
Pig Iron
|
450 MT
|
15,000
|
67,50,000
|
|
2)
|
M.S. Scrap
|
60 MT
|
15,000
|
9,00,000
|
|
3)
|
Ferro Alloys i.e Ferro Silicon, Ferro Manganese, Ferro
Chrome, Ferro Nickel
|
L.S.
|
-
|
9,00,000
|
|
4)
|
Sand
|
L.S.
|
-
|
30,000
|
|
5)
|
Lime Stone
|
L.S.
|
-
|
30,000
|
|
6)
|
Graphite Powder
|
L.S.
|
-
|
30,000
|
|
7)
|
Thermocouple Tips
|
L.S.
|
-
|
25,000
|
|
8)
|
Grinding Wheel
|
L.S.
|
-
|
25,000
|
|
9)
|
Foundry Coke
|
4 MT
|
9,000
|
1,50,000
|
|
10)
|
Kerosene, Oil, Lubricating Oil,
Grease etc.
|
L.S.
|
|
1,00,000
|
|
Total
|
89,40,000
|
(ii) Personnel
|
Sl. No.
|
Particulars |
Nos |
Salary (In Rs.)
|
Amount (In Rs.)
|
|
1)
|
General Manager
|
1
|
40,000
|
40,000
|
|
2)
|
Production Manager
|
1
|
30,000
|
30,000
|
|
3)
|
Q.C. In-charge and laboratory chemists
|
5
|
|
60,000
|
|
4)
|
Marketing, Sales, Purchase administrative officers
and staff
|
10
|
|
1,00,000
|
|
5)
|
Skilled Workers
|
25
|
4,000
|
1,00,000
|
|
6)
|
Un-skilled Workers
|
50
|
3,000
|
1,50,000
|
|
7)
|
Watchmen
|
4
|
3,000
|
12,000
|
|
8)
|
Peon
|
3
|
3,000
|
9,000
|
|
9)
|
Perks to Staff @ 22%
|
|
|
1,10,000
|
|
Total
|
6,11,000
|
|
(iii) Utilities
|
(Rs.)
|
|
1)
|
Power
|
1,50,000
|
|
2)
|
Water
|
10,000
|
|
|
Total
|
160 ,000
|
|
|
(iv) Other Contingent Expenses
|
(Rs.)
|
|
1)
|
Publicity
|
25,000
|
|
2)
|
Postal Charges
|
10,000
|
|
3)
|
Stationery
|
5,000
|
|
4)
|
Telephone
|
20,000
|
|
5)
|
Transportation
|
2,00,000
|
|
6)
|
Consumable Items
|
20,000
|
|
7)
|
Repairs and Renewal
|
51,000
|
|
8)
|
Insurance
|
17,000
|
|
9)
|
Packing Material
|
25,000
|
|
Total
|
3,73,000
|
|
Total Recurring Expenditure (i + ii + iii + iv) Rs.
|
=
|
1,00,84,000
|
|
Total Working Capital for 3 Months Total Recurring
Expenditure ×3 Rs.
|
=
|
3,02,52,000
|
C. Total Capital Investment
|
1)
|
Total Fixed Capital Rs.
|
2,16,77,000
|
|
2)
|
Total Working Capital Rs.
|
3,02,52,000
|
|
Total Rs.
|
5,19,29,000
|
Financial Analysis
|
(1)
|
Cost of Production (per annum)
|
(Rs.)
|
|
a)
|
Total Recurring Cost
|
12,10,08,000
|
|
b)
|
Depreciation on Building @ 5%
|
8,00,000
|
|
c)
|
Depreciation on Machinery @ 10%
|
18,28,000
|
|
d)
|
Depreciation on Furnace @ 20%
|
3,60,000
|
|
e)
|
Depreciation on Office Equipment @20%
|
100,000
|
|
(f)
|
Interest on Total Investment @12%
|
62,31,000
|
|
Total
|
13,03,27,000
|
2) Turnover (per annum)
|
Item
|
Qty.
|
Rate (Rs.)
|
Amount (Rs.)
|
|
Piston
|
12,96,000 Pieces
|
125.7 per Piece
|
16,29,09,000
|
(3) Net Profit (per annum) (Before
Taxes)
Total Sales –Cost of Production
Rs.16,29,09,000 – 13,03,27,000 = Rs.3,52,82,000
|
|
|
Net Profit per annum × 100
|
|
(4) Net Profit Ratio
|
=
|
-----------------------------
|
|
|
|
Turnover per annum
|
|
|
|
|
|
|
|
3,52,82,000×100
|
|
|
=
|
------------------
|
|
|
|
16,29,09,000
|
|
|
|
|
|
|
=
|
20%
|
|
|
|
Net Profit per annum × 100
|
|
(5) Rate of Return
|
=
|
-----------------------------
|
|
|
|
Total Capital Investment
|
|
|
|
|
|
|
|
3,52,82,000×100
|
|
|
=
|
------------------
|
|
|
|
5,19,29,000
|
|
|
|
|
|
|
=
|
67.9%
|
(6) Break-even Point
|
|
Fixed Cost (per annum)
|
(Rs.)
|
|
1)
|
Depreciation on Plant and Machinery
|
18,28,000
|
|
2)
|
Depreciation on Furnace
|
3,60,000
|
|
3)
|
Depreciation on Office Equipments & building
|
9,00,000
|
|
4)
|
Interest on Total Investment
|
62,31,000
|
|
5)
|
Insurance
|
2,04,000
|
|
6)
|
40% of Salary and Wages
|
29,33,000
|
|
7)
|
40% of Other Contingent Expenses
|
17,90,000
|
|
Total
|
1,42,46,000
|
|
|
|
Fixed Cost ×100
|
|
B.E.P.
|
=
|
-----------------------------
|
|
|
|
Fixed Cost + Profit per annum
|
|
|
|
|
|
|
|
1,42,46,000 ×100
|
|
|
=
|
------------------------
|
|
|
|
1,42,46,000 + 3,52,82,000
|
|
|
|
|
|
|
|
50,82,000 ×100
|
|
|
=
|
------------------
|
|
|
|
92,79,000
|
|
|
|
|
|
|
=
|
28.76%
|
Addresses of Machinery and Equipment
Suppliers
1) M/s. R.P. Sales Corpn.
501, Bldg. No. 11,
Tulsidham Complex,
Near Tatvadnyan Vidyapeeth,
Ghodbunder,
Thane, (Maharashtra)
2) M/s. HMT Ltd.
Machine Tool Mktg. Division,
59, Bellary Road,
Bangalore - 32.
3) M/s. Versatile Equipments Pvt. Ltd.
B-69, MIDC,
Gokul Shirgaon,
Kolhapur - 34,
(Maharashtra)
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
