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Automobile Body Building (Bus
Body)
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Product Code
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:
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374103003
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Quality and Standards
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:
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Buyer's Specifications
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Production Capacity
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:
|
Qty. : 324 Nos.(per annum)
Value : Rs. 13,51,00,000
|
Introduction
Automobile body (Bus Body) building is
an important activity. The chasis are supplied by Automobile
manufacturers, and body is built by automobile body builders
as per the requirements of the customer and specifications
of the different State Transport Undertakings.
Market Potential
Bus is used as the most common public
transport vehicle in our country. Different State Transport
Undertakings are plying their buses for commuting public from
one place to another and from one State to another. Apart
from these Undertakings, Private Bus Operators, travel agencies
etc. are also operating buses on permit basis. With rapid
changes in the society, now a days it has become necessary
to provide good and efficient service to the public. Also
with the rapid industrialisation, public is moving very frequently
from one place to another using public transport. Since more
and more development in the coming years, it is expected that
demand of public transport, private transport and luxury transport
in the form of buses will increase in the coming years.
Basis and Presumptions
1. Working will be for 3 shifts
per day of 08 hrs each at minimum 75% working efficiency to
achieve the envisaged production capacity.
2. A time period of three years has been considered for achieving
the full capacity utilisation after start of commercial production.
3. Labour wages are considered as per the prevailing market
rates.
4. Interest on fixed and working capital investment has been
calculated at an average rate of 12% per annum.
5. The cost of land and building has been calculated as per
the prevailing market prices, and these rates are likely to
vary from place to place.
Implementation Schedule
The following activities are to be completed
and the approximate time for each activity is as mentioned
against each of them:
| Sl. No. |
Activity |
Period (in Weeks) |
| 1. |
Selection of product |
4 |
| 2. |
Selection of Industrial site |
2 |
| 3. |
Provisional registration |
2 |
| 4. |
Preparation of project Report |
2 |
| 5. |
Application for finance and getting
Loan sanctioned |
24 |
| 6. |
Recruitment of man power |
4 |
| 7. |
Purchase and Installation of machinery
|
14 |
| 8. |
Trial Run |
1 |
It is necessary to obtain permanent Registration
Certificate from the concerned District Industries Centre
after commencement of commercial production.
Technical Aspects
Process of Manufacture
Metal sheets are cleaned and derusted
for grease/oil if any. Then sheets are cut to size for forming
different parts and these parts are formed on press brake.
Now different parts and their subassemblies are fabricated
as per their design and size. These parts and subassemblies
are fabricated– together to make them a complete bus body.
The complete body is painted as per the requirements of the
customer. Shower test is carried out for leakage etc.
Production Capacity (per annum)
| Quantity |
: |
324 Nos. |
| Value |
: |
Rs 13,51,00,000 |
| Motive Power |
: |
150 HP (Approx.) |
Pollution Control
The manufacturing/fabrication of bus body
does not pose any problem for pollution. However, proper ventilation
is to be done in shop floor area and painting area. Provision
for pollution control equipments has been made in this Project
Profile.
Energy Conservation
Suitable energy efficient motors are to
be used on proposed machines with provision of recommended
shunt capacitors.
Financial Aspects
A. Fixed Capital
| (i) Civil cost |
Amt. (In Rs.) |
| (a) Land 4000 Sq.Mtrs.
@ Rs. 3500/ Sq.Mtr. |
1,40,00,000 |
| (b) Office - 100 Sq.
Mtr @ Rs.7500/Sq.mtr. |
7,50,000 |
| (c) Store –150 Sq. Mtr
@Rs.6000/Sq.mtr. |
9,00,000 |
| (d) Working shed - 2000
Sq. Mtr. @ Rs. 6000/Sq.mtr. bore well and raw water storage,
DG set room, security room, laboratory, maintenance room,
workers room |
1,20,00,000 |
| (e) Paint Shop (Preferably
Dust Proof) - 100 Sq. Mtr. @ Rs. 7000 per Sq. mtr. |
7,00,000 |
| (f) Boundary wall, gates,
roads inside the premises |
8,00,000 |
| Cost of land and building
= 1,40,00,000 + 1,51,50,000 |
2,91,50,000 |
(ii) Machinery and Equipments
| Sl. No. |
Description |
Ind./ Imp. |
Qty. |
Total
(In Rs.)
|
| 1. |
Motorised Guillotine Sheet Shearing
Machine Capacity 2500×4 mm with 10 HP electric motor
and starter etc. also fitted with front and back side
gauges, sheet holding devices etc |
Ind. |
1 |
9,00,000
|
| 2. |
Power operated Press Brake bending
capacity 2440 × 4 mm, 100 Ton with 15 HP Main Motor
and 2 HP raw adjustment Motor |
Ind |
1 |
11,00,000
|
| 3. |
Suspension type M.I.G. Welding system
250 Amp. along with power source, wire feeder, Torch and
flow Calibrated Co2 regulator and Co2 heated with core
assembly OPC. |
Ind. |
1 |
2,00,000
|
| 4. |
Gas Welding set with all the Accessories
etc. |
Ind. |
2 |
50,000
|
| 5. |
Arc welding machine 300 Amps. 15
kVA Air Cooled complete with all the accessories |
Ind. |
5 |
2,00,000
|
| 6. |
Air Compressor with painting equipment
and accessories for painting |
Ind. |
1 |
2,00,000
|
| 7. |
Different types of power/Air operated
tools like Nut runner, drilling gun etc. |
Ind. |
L.S. |
4,00,000
|
| 8. |
Drilling Machine 1½"
capacity |
Ind. |
2 |
1,00,000
|
| 9. |
Metal cutting bandsaw for cutting
Aluminium sections complete with 2 HP Electric motor and
accessories |
Ind. |
1 |
1,00,000
|
| 10. |
Hoist chain pulley block crane and
material handling trolley etc. |
Ind. |
L.S. |
5,00,000
|
|
Testing Equipment and others
|
| 1. |
Shower tester self fabricated (Nozzles
to be arranged at different orientations to cover the
entire portion of the vehicle) |
Ind. |
1 |
3,00,000
|
| 2. |
Portable digital paint thickness
checking equipment (Coating thickness checking) |
Ind. |
- |
25,000
|
| 3. |
Small measuring tools: |
Ind. |
- |
25,000
|
| 4. |
Pollution Control Equipment |
|
- |
2,00,000
|
| 5. |
Bore well and raw water system, DG
set with accessories |
|
- |
15,00,000
|
| 6. |
Excise and sales tax electrification
and installation charges @ 40% cost of machinery and equipment
|
|
- |
27,20,000
|
| 7. |
Cost of Jigs, Fixtures etc. |
|
L.S. |
5,00,000
|
| 8. |
Cost of office equipment |
|
L.S. |
5,00,000
|
|
Total plant and m/c cost
|
95,20,000
|
|
(iii) Preoperative expenses
|
5,00,000
|
|
Total Fixed Capital (i+ii+iii)
Rs. 2,91,50,000 + 95,20,000 + 5,00,000
|
3,91,70,000
|
B. Working Capital
(per month)
(i) Personnel
| Description |
No.
|
Salary |
Total
(In Rs.)
|
|
i) Administrative and Supervisory
|
|
General Manager
|
1
|
30,000
|
30,000
|
|
Commercial Manager, Sales and Marketing
staff, finance and accounts staff and purchase staff
and stores staff
|
|
|
1,75,000
|
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Administrative officer and staff
|
|
|
30,000
|
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Production manager, laboratory chemists
maintenance engineers and staff, shift incharges
|
|
|
2,00,000
|
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Chowkidar/Watchman
|
7
|
|
21,000
|
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ii) Technical
|
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Skilled Workers
|
40
|
5000
|
2.00,000
|
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Semi-skilled workers
|
45
|
4000
|
1,80,000
|
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Un-skilled Workers
|
40
|
3000
|
1,20,000
|
|
Total
|
9,56,000
|
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Add perquisites @ 22%
|
2,10,000
|
|
Total
|
11,68,000
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(ii) Raw Materials
| Sl. No. |
Particulars
|
Ind./ Imp.
|
Qty.
|
Rate (Rs.) |
Amount (In Rs.) |
| 1. |
M.S. Channel 75 × 40 to ×
50 mm
|
Ind.
|
9 MT
|
40,000 |
3,60,000 |
| 2. |
M.S. Equal Angle 25× 25×3
to 50×50×6 mm
|
Ind.
|
15 MT
|
40,000 |
6,00,000 |
| 3. |
M.S. Flat 50 to 70 mm wide
|
Ind.
|
3.750 MT
|
40,000 |
1,50,000 |
| 4. |
Aluminium chequered Plate 8 mm to
½ inch
|
Ind.
|
3 MT
|
2,50,000 |
7,50,000 |
| 5. |
CR/BP Sheet 10 to 26 SWG
|
Ind.
|
75 MT
|
52,000 |
39,00,000 |
| 6. |
M.S. Pipe 3/4" to 1" Dia
|
Ind.
|
1.500 MT
|
40,000 |
60,000 |
| 7. |
Aluminium Rolled Sections
|
Ind.
|
1.500 MT
|
2,50,000 |
3,75,000 |
| 8. |
Bought out items and hardware items
|
Ind.
|
L.S.
|
|
2,00,000 |
| 9. |
Other bought out items such as Raxine
Ply,. PVC. Sheet. Foam OTC, Electrical fittings and
fixtures, emblem etc.
|
Ind.
|
L..
|
|
5,00,000 |
|
Total
|
68,95,000 |
|
(iii) Utilities
|
Amount
(In Rs.) |
| Power |
150x0,8x0.73x24x25x4
|
2,10,000 |
| Water |
L.S. |
10,000 |
|
Total
|
2,20,000 |
| (iv) Other Contingent
Expenses |
Amt (In Rs.)
|
|
Lubricants
|
20,000
|
|
Postage and Stationery and communication
expenses
|
30,000
|
|
Consumable stores (Redoxide, Paint,
Putty, Kerosene, Emery paper, Welding electrode, tools
etc.)
|
5,00,000
|
|
Transport Charges
|
25,000
|
|
Advertisement and Publicity
|
25,000
|
|
Insurance Charges
|
21,000
|
|
Sales Expenses
|
1,50,000
|
|
Misc. Expenses
|
50,000
|
|
Total
|
8,21,000
|
| (v) Total Recurring Expenditure
(per month) |
(In Rs.) |
| Staff and labour |
11,68,000 |
| Raw material |
68,95,000 |
| Utilities |
2,20,000 |
| Other Contingent Expenses |
8,21,000 |
|
Total
|
91,04,000 |
| (vi) Working capital
for 3 months |
Rs. 2,71,35,000 |
C. Total Capital Investment
| (i) Fixed Capital |
Rs. 3,91,70,000 |
| (ii) Working Capital for 3 months
|
Rs. 2,73,12,000 |
|
Total
|
Rs. 6,64,82,000 |
Machinery Utilisation
It is assumed that machinery will be utilised
at 75% efficiency.
Financial Analysis
|
(1) Cost of Production (per year)
|
Amt (In Rs.) |
|
Total recurring cost
|
10,92,48,000 |
|
Depreciation on building @ 5%
|
7,58,000 |
|
Depreciation on Dies, Jigs and Fixtures
etc. @ 20%
|
1,00,000 |
|
Depreciation on machinery and equipments
@ 10%
|
8,52,000 |
|
Depreciation on office equipment
20%
|
1,00,000 |
|
Interest on total capital investment
@ 12%
|
79,78,000 |
|
Total
|
11,90,36,000 |
(2) Turnover (per year)
| Sl. No. |
Item |
Qty.
|
Rate
(Rs.) |
Total
(In Rs.)
|
| i) |
Full size Bus body |
324 Nos.
|
4,11,440 per piece |
13,33,00,000
|
| ii) |
Sale of scrap |
90 MT
|
20000/MT |
18,00,000
|
|
Total
|
13,51,00,000
|
|
(3) Net Profit (per year) (before
tax)
|
|
|
= |
Rs. 13,51,00,000 – 11,90,37,000
|
| |
= |
Rs. 1,60,63,000 |
|
|
|
|
|
(4) Profit Ratio
|
= |
Net Profit (per year) ×100
--------------------
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|
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Total Sale
|
|
|
|
|
|
= |
1,60,63,000 × 100
----------------------
|
|
|
|
13,51,00,000
|
|
|
|
|
|
|
= |
11.89%
|
|
|
|
|
|
(5) Rate of Return
|
= |
Net Profit (per year) × 100
--------------------------------
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|
|
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Total investment
|
|
|
|
|
|
|
= |
1,60,63,000 × 100
-----------------------
|
|
|
|
6,64,82,000
|
| |
|
|
|
|
= |
24.16%
|
(6) Break-even Point
| Fixed Cost |
(Rs.) |
| Depreciation on machinery and equipment,
tools, fixtures, office equipment and building |
18,10,000 |
| Interest on total investment |
79,57,000 |
| 40% of Salary and wages |
56,06,000 |
| 40% of utilities and other contingent
expenses |
39,40,000 |
|
Total
|
1,93,13,000 |
| B.E.P |
= |
Fixed cost × 100
----------------------- |
| |
|
Fixed cost + Profit |
| |
|
|
| |
= |
1,93,34,000×100
------------------------------- |
| |
|
1,93,34,000 + 1,60,63,000 |
| |
|
|
| |
= |
54.62% |
Additional Information
The unit should install degreasing and phospating plant for
obtaining long life and good quality paint of bus body to
improve the quality of product .
Addresses of Machinery and Equipment
Suppliers
1. M/s. Parekh Machine Tools
5, Khetra Das Lane, Behind Broad
Way Hotel, Kolkata.
2. M/s. Economic Machine Tools
21, Dr. V.B. Gandhi Marg,
(Forbes Street), Fort,
Mumbai-1
3. M/s. Master Engg. Works (Regd.)
G.T. Road (Dholewal), Opp. Indian
Oil Petrol Pump, Ludhiana-3.
4. M/s. International Machine Tools Corporation
5, Nyayamurti G.N. Vaidhya Marg,
Bank Street, Post Box No-2,
Behind State Bank of India,
Fort, Mumbai-1.
Raw Material Suppliers
1. M/s. Steel Authority of India.
2. State Laghu Udyog Nigam.
3. Local Market.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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