|
Automotive Chain (Motorcycle Chain)
|
Product Code
|
: |
343401002 |
|
Quality and Standards
|
: |
IS 11740:1986 |
|
Production Capacity
|
:
|
Qty. : 10,26,000 in Nos. (per annum)
Value : Rs. 13,68,00,000 |
Introduction
Chain is an important link to transfer
power from engine of a motorcycle to the rear driving wheel
through sprockets. Automotive chains are of different sizes
based upon the power to be transmitted. The size employed
upon the most popular motorcycle in the Indian market is of
12.7 mm × 8 mm dia × 7.85 mm width rollers. The
lengths of the chain for such models of motorcycles are either
of 120 links or 118 links. This scheme is based on 120 links.
Market Potential
Motorcycle has become a common mode of
conveyance as a result of modern life style. As the population
is rapidly increasing day by day, the demand of motorcycles
is also increasing. As such, there is a demand for motorcycle
chains to meet the replacement market as well as for supply
to the O.E.M. units.
Therefore, there is a great potential
for this item and considerable scope to set up new units in
this line.
Basis and Presumptions
1. The Project Profile has been prepared
on the basis of single shift of 8 hours each day, 25 days
in a month and at 75% efficiency.
2. It is presumed that in the first year, the capacity utilisation
will be 60% followed by 70% in the next year and 80% in the
subsequent years.
3. The rates of salaries and wages for skilled workers and
others are the minimum rates in the State/ Neighbouring States.
4. Interest rate for fixed and working capital has been taken
on an average rate of 12% whether financed by bankers or by
Financial Corporations.
5. Margin money required is minimum 30% of the project investment.
6. The land, working shed and civil construction has been
taken in the project cost.
7. The rates quoted in respect of machines,
equipment and raw materials are those, prevailing at the time
of preparation of this Project Profile and are likely to vary
from supplier to supplier and place to place. When a tailor
made project profile is prepared necessary changes are to
be made.
Implementation Schedule
| Sl. No. |
Activity |
Period |
| i. |
Preparation of Project
Report: |
|
| |
a) Calling quotations
|
1 Month |
| |
b) Preparation |
2 Weeks |
| ii. |
Provisional Registration
as SSI |
1 Week |
| iii. |
Financial Arrangement
|
3 Months |
| iv. |
Purchase and procurement
of machines and equipments |
2 Months |
| v. |
Installation of Machines
|
1 Month |
| vi. |
Electrification |
1 Month |
| vii. |
Recruitment of Staff
and Workers |
1 Month |
Technical Aspects
Process of Manufacture
i) Outer and inner link blank are cut
from cold rolled steel strips on S.P.M. with progressive die
sets.
ii) Rollers are drawn into cups on compound die sets from
CR steel strips and then pierced on an automatic S.P.M.
iii) Bushes are manufactured by curling process on a S.P.M.
from cold rolled strip with rounded edges.
iv) Pins are cut on an automatic Header Machine to required
length.
v) Barrelling
vi) Heat Treatment
vii) Barrelling
viii) Colouring
ix) Block Assembly on automatic machine.
x) Chain assembly on automatic machines.
xi) Rivetting
xii) Greasing
xiii) Packing.
Quality Control and Standards
BIS has prepared a standard specification
No. IS 11740 :1986 on chains for motorcycle and the quality
should conform to the same.
Production Capacity (per annum)
| Item |
Qty. |
Amount
(In Rs.) |
Automotive Chain
(Motorcycle Chain) |
342000 Nos. (Excluding
5% provision made for stage rejections) |
2,39,40,000 |
Pollution Control
The building/workshed, specially heat
treatment section is to be provided with exhaust fans. Provision
has also been made for neutralising of the cyanide salts.
Necessary permission from Pollution Control Department/ Board
is required.
Energy Conservation
i) Machine Shop should be well ventilated
and should have transparent roof sheets to get sufficient
light during day time.
ii) The periodic maintenance of Machines should be carried
out.
iii) Shunt capacitors should be used to
improve the power factor.
Financial Aspects
A. Fixed Capital
|
(i) Land and Building
|
|
a) Land requirement ; 1000 sq. Mtr
: @ Rs. 3500 per sq. Mtr.: Rs. 35,00,000
|
| a) Raw material and finished
goods store, office, maintenance room, laboratory, workers
room, security room, pollution control area, DG set, raw
water and bore well, general store room 250 Sq. Mtr @
7000 / Sq. Mtr. |
Rs. 17,50,000
|
| b) Working Shed 400 Sq.
Mtr @ Rs. 6000 / sq. mtr |
Rs. 24,00,000
|
| c) Heat treatment section,
75 Sq.mtr @ Rs. 7000/Sq. mtr |
Rs. 5,25,000
|
| d) Packing Section 25
Sq. Mtr Rs. 7000/ Sq. Mtr |
Rs. 1,75,000
|
| e) Land development,
boundry wall ,gates and inside roads |
Rs. 5,00,000
|
| Total civil cost :
(Land cost + building costs) |
Rs. 88,50,000
|
(ii) Machinery and Equipments
| Sl. No. |
Description |
No. |
H.P. |
Amount
(In Rs.)
|
|
Production unit
|
| 1. |
Single action power press cap. 75
tonnes complete with automatic feeding system and electricals
etc.
|
2 |
15 |
10,00,000
|
| 2. |
Single action power press cap. 10
ton complete with electricals
|
1 |
2 |
1,00,000
|
| 3. |
Single action power press cap. 50
tonnes complete with automatic feeding system and electricals
etc.
|
1 |
5 |
3,00,000
|
| 4. |
Special purpose roller cups Punching
Machine complete with automatic feeding systems and
electricals etc.
|
2 |
2 |
2,50,000
|
| 5. |
Special purpose curling and cutting
machine complete with automatic feeding system and electrical
etc.
|
2 |
4 |
5,00,000
|
| 6. |
Special purpose bush making and
sizing machine complete with automatic feeding system
and electricals
|
2 |
3 |
4,00,000
|
| 7. |
Automatic header machine for cutting
of rivetting pins complete with electricals etc.
|
1 |
2 |
1,00,000
|
| 8. |
Automatic special purpose lock pin
turning machine complete with electricals etc.
|
1 |
1 |
1,00,000
|
| 9. |
Tumbling barrels complete with gear
box motor and electricals etc.
|
4 |
8 |
2,50,000
|
| 10. |
30 KW electric rotary retort type
gas carborising furnace 30 Kg. Cap, complete with electricals
etc.
|
2 |
100 |
2,00,000
|
| 11. |
15 KW salt bath furnace electrically
operated charge cap. 30 Kg.
|
2 |
40 |
600,000
|
| 12. |
Automatic chain block assembly machine
complete with electricals and feeding system.
|
2 |
4 |
10,00,000
|
| 13. |
Automatic chain assembly machine
complete with electricals etc.
|
2 |
4 |
7,00,000
|
| 14. |
Pneumatic chain stretching machine
complete with 1 HP Compressor and electricals
|
1 |
2 |
3,00,000
|
|
Total
|
58,00,000
|
|
Testing Section
|
| 15. |
Hardness Testing machine with spare
set of diamonds and steel balls and standard test samples
|
1 |
- |
3,00,000
|
| 16. |
Chain fatigue testing machine
|
1 |
2 |
2,00,000
|
|
Total
|
5,00,000
|
|
Tool Room And Machine Section
|
| 17. |
1500 mm Bed sliding surfacing and
screw cutting centre lathe machine complete with electric
motor, starter etc.
|
1 |
2 |
3,00,000
|
| 18. |
500mm × 200mm traverse Horizontal
spindle surface grinding machine complete with electricals
etc.
|
1 |
1.5 |
1,00,000
|
| 19. |
12mm cap. Precision drilling machine
complete with electricals etc. and double ended bench
grinder 200MM wheel dia with motor
|
1 |
0.5 |
50,000
|
| 20. |
DG set with accessories, Raw water
with storage piping and pumping, electrical transformer
and other utilities
|
|
|
20,00,000
|
| 21. |
24" stroke shaping machine
complete with electric motor and other electricals etc.
|
1 |
3 |
1,50,000
|
| 22. |
Universal milling machine size No.
2 alongwith vertical attachment and dividing head complete
with electricals
|
1 |
5 |
5,00,000
|
| 23. |
Pollution Control Equipment
|
|
3 |
8,00,000
|
| 24. |
Marking and measuring instruments
|
|
- |
3,00,000
|
| 25. |
Special purpose toolings and other
petty equipments
|
|
- |
7,50,000
|
|
Total
|
49,50,000
|
| Sl. No. |
Description |
Amount
(In Rs.)
|
|
Electrification and Installation
|
| (i) |
Charges including cost of power
connection and security deposit @ 10% of cost of machinery
and equipment, 30% of plant and m/c cost as excise,
sales tax and other expenses.
|
45,00,000
|
| (ii) |
Total Cost of Machinery and Equipments
|
1,12,50,000
|
| (iii) |
Cost of Office Equipment, Furniture
|
5,00,000
|
| (iv) |
Pre-operative Expenses
|
7,50,000
|
| |
Total plant and machinery cost
(i +ii + iii+iv)
|
1,70,00,000
|
|
Total fixed cost = Total civil
cost + total plant and machinery cost= Rs. 88,50,000+Rs.
1,70,00,000
|
2,58,50,000
|
B. Working Capital (per month)
(i) Personnel
| Sl. No. |
Description |
No. |
Salary
(In Rs.) |
Amount
(In Rs.) |
|
Administrative
|
| 1. |
General Manager |
1 |
30,000 |
30,000 |
| 2. |
Production Manager, production supervisors,
Laboratory chemists, Maintenance engineer, supervisors,
|
10 |
|
2,00,000 |
| 3. |
Finance manager, and his team |
1 |
2500 |
40,000 |
| 4. |
Commercial manager and his team consisting
of sales and marketing and purchase and administration
team |
6 |
2000 |
1,00,000 |
| 5. |
Foreman |
7 |
5000 |
35,000 |
| 6. |
Heat Treater |
4 |
5000 |
20,000 |
| 7. |
Skilled Worker |
50 |
4000 |
2,00,000 |
| 8. |
Semi-skilled Worker |
24 |
3500 |
84,000 |
| 9. |
Peon/Chowkidar |
10 |
3000 |
30,000 |
| 10. |
Sweeper |
3 |
3000 |
9,000 |
|
Total
|
7,48,000 |
|
Add Per-quisites @ 22% of salary
|
1,65,000 |
|
Total
|
9,13,000 |
(ii) Raw Materials Including Packaging
Requirements
| Sl. No. |
Particulars |
Qty. MT |
Amount
(In Rs.) |
| 1. |
Medium carbon steel sheet
19 SWG |
81 |
36,45,000 |
| 2. |
CRCA, DD Grade steel
strips 19 SWG |
25 |
10,00,000 |
| 3. |
CR. Steel strip 11 mm
× 1 mm thick with Rounded edges (rolled from wire)
|
16.5 |
7,43,000 |
| 4. |
Low Carbon 4.5mm dia
steel wire |
25.5 |
12,00,000 |
| 5. |
Liquid carburising materials
|
12,000 liters |
2,00,000 |
| 6. |
Ammonia Gas |
75 Cylinders |
3,00,000 |
| 7. |
Packaging cartons etc.
|
90000 Nos. |
1,50,000 |
| 8. |
Misc. O/B items |
|
5,00,000 |
|
Total
|
77,38,000 |
|
(iii) Utilities
|
(In Rs.) |
| 1. Power |
69120 units @ Rs. 4.0/unit |
2,76,000 |
|
2. Water
|
5,000 |
|
Total
|
2,81,000 |
|
(iv) Other Contingent Expenses
|
(In Rs.) |
| 1 |
Postage and Stationery |
20,000 |
| 2 |
Consumable Stores |
1,00,000 |
| 3 |
Telephone and communication expenses
|
20,000 |
| 4 |
Repair and Maintenance |
28,000 |
| 5 |
Transport Charges |
20,000 |
| 6 |
Advertisement and publicity |
40,000 |
| 7 |
Insurance |
14,000 |
| 8 |
Sales Expenses |
3,00,000 |
| 9 |
Miscellaneous Expenses |
2,00,000 |
|
Total
|
7,42,000 |
| (v) Total Recurring Expenditure
(per month) |
(Rs.) |
| 1. Raw Material |
77,38,000 |
| 2. Personnel |
9,13,000 |
| 3. Utilities |
2,81,000 |
| 4. Other Contingent Expenses |
7,42,000 |
|
Total
|
96,74,000 |
Working Capital (for 3 months) 96,74,000
× 3 = Rs. 2,90.22,000
C. Total Capital Investment
| (i) Fixed Capital |
Rs. 2,58,50,000 |
| (ii) Working capital for 3 months
|
Rs. 2,90,22,000 |
|
Total
|
Rs. 5,48,72,000 |
Financial Analysis
| (1) Cost of Production (per year)
|
Amt. (In Rs.) |
| (i) Total recurring cost |
11,60,88,000 |
| (ii) Depreciation on pl. and m/c
@ 10% |
15,50,000 |
| (iii) Depreciation on Dies / Tools/
measuring instruments etc. @ 20% |
2,00,000 |
| (iv) Depreciation on office equipment
@20% |
1,00,000 |
| (v) Interest on total investment
@ 12% |
65,85,000 |
| (vi) Depreciation on civil construction
@ 5% |
2,68,000 |
|
Total
|
12,47,91,000 |
(2) Turnover (per year)
| Item |
Qty. |
Rate (Rs.) |
Value (Rs.) |
| Motorcycle Chain |
1026000 Nos. |
133.33/ chain |
13,68,00,000 |
|
(3) Net Profit (per year) (Before
Income Tax)
|
| Profit |
= |
Sales - Production Cost |
| |
= |
Rs. 13,68,00,000 – 12,47,91,000 |
| |
= |
Rs. 1,20,09,000 |
| |
|
|
| (4) Net Profit Ratio |
|
|
| |
= |
Net Profit per year×100
-------------------- |
| |
|
Turnover per year |
| |
|
|
| |
= |
1,20,09,000 × 100
------------------- |
| |
|
13,68,00,000 |
| |
= |
8.8% |
| |
|
|
| (5) Rate of Return |
|
|
| |
= |
Net Profit per Year ×100
--------------------------- |
| |
|
Total Investment |
| |
|
|
| |
= |
1,20,09,000 × 100
------------------- |
| |
|
5,48,72,000 |
|
|
=
|
21.88% |
(6) Break-even Point (% of total Production
envisaged)
| Fixed Cost (per year) |
(Rs.) |
| (a) Total Depreciation |
21,18,000 |
| (b) Total interest |
65,85,000 |
| (c) 40% of salary and wages |
43,82,000 |
| (d) 40% of other contingent expenses
|
35,61,000 |
|
Total
|
1,66,46,000 |
| (ii) Net Profit (per year) |
Rs. 1,66,46,000 |
| B.E.P |
= |
Fixed cost × 100
--------------------
|
| |
|
Fixed cost + Profit
|
| |
|
|
| |
= |
1,66,46,000 X100
-----------------------
|
| |
|
16646000 + 1,20,09,000
|
| |
= |
58.09%
|
Addresses of
Machinery and Equipment Suppliers
1. M/s. Milton Machine Tools
P.B. No. 30,
Sonepat (Haryana)
2. M/s. Godly Machine Tools (P) Ltd.
C-190, Phase-VI,
Focal Point, Ludhiana.
3. M/s. Research and Development
Centre for Bicycle and Sewing
Machines, Focal Point,
Ludhiana.
4. M/s. Vishkarma Electric Furnaces
St. No. 2, Partap Nagar,
Ludhiana–141003
5. M/s. Kalsi Machine Tools
Gill Road,
Ludhiana-141003
6. M/s. Simplicity Furnaces Ltd.
55-B, Phase-II, Mayapuri,
New Delhi.
7. M/s. Sant Machine Tools
G.T. Road, Near Dholewal Chowk,
Ludhiana.
8. M/s. Raj Enterprises
628, Industrial Area-B,
Ludhiana.
9. M/s. Basant Mechanical Works (Regd.)
720-722, Basant Road,
Industrial Area–B,
Ludhiana.
10. M/s. Deep Industries
Oswal Street No. 1,
Industrial Area–B,
Ludhiana.
Addresses of Raw Material Suppliers
1. M/s. Rolled Strips and Profiles Ltd.
Karur (Kerla).
2. M/s. Avon Cycles Ltd.
Ludhiana.
3. M/s. Special Steels Ltd.
Mumbai and Bhagwan Chowk,
Ludhiana.
4. M/s. Steel Strips Ltd.
Industrial Area-B,
Ludhiana-141003.
5. State Small Industries and Export Corporations.
6. M/s. Steel Authority of India Ltd.
7. Open Market.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
