|
Air Conditioner Window Type
| Product Code |
: |
355204002 |
| Quality
and Standards |
: |
IS 1391
: 1971
IS 7613 : 1975
IS 8148 : 1976 |
| Production
Capacity |
: |
Value :
Rs 240.Lakhs (per annum) |
| Uploaded
on |
: |
April
2007 |
Introduction
Air Conditioners perform cleaning, circulating,
temperature controlling and humidity controlling of air function
within a specified area. Window type Air Conditioners being
a compact unit, is installed near the space to be air conditioned.
Market Potential
Now a days, not only human beings but
Machines, Computers, & Processors also require conditioned
air for proper functioning e.g. CNC Machines, Testing Labs,
Calibration Centre etc. The demand of Air Conditioners has
emerged, in a bigway.
In middle upper class families, Air Conditioners
have become very popular. These are used in Offices, Showrooms,
Houses, Hotels etc.
Large Companies like Shri Ram, Carrier
Aircon, Lllyods, Jainson, L.G., Videocon, Samsung, Voltas
etc. are doing very good business in Air Conditioners upto
the capacity of 2 Tonnes rating. As the society is moving
towards materialism and a lot of emphasis is put on purchasing
modern utilities/ amenities and domestic appliances with maximum
facilities, the demand of Window type AC is bound to increase
in times to come. Therefore, there is good demand of Window
type Air Conditioners.
Basis and Presumptions
General Assumptions
In carrying out financial analysis, it is assumed that the
unit price of raw material, utilities, and finished goods
shall increase by 5% every year.
Number of Days and Shifts
It is assumed that unit would be working 300 days in a year
on double shift basis.
Installed Capacity
Installed Capacity is based on assembly of Air Conditioners
and Testing Performance Test. Four Air Conditioners can be
assembled every day.
| Hence capacity (per month)
|
= 4× 25 = 100 |
| Capacity (per annum)
= 100 × 12 |
= 1200 |
Capacity Utilization
On the basis of general industrial experience,
capacity utilization in terms of Installed Capacity is assumed
as under:
| Year |
1st |
2nd |
3rd |
| Capacity Utilization
|
70% |
75% |
80% |
Interest
Interest has been taken @ 12% per annum.
Depreciation
Depreciation on Plant and Machinery has
been taken @ 10%.
Administrative and Selling Expenses
Administrative and Selling Expenses have
been assumed to be 10% of the total gross sale.
This includes salary of Administrative
and Technical Staff, Commission, Trade Discount, Printing
Publication of Literatures, etc.
Sales Price
Market Price of the Window type Air Conditioner
is around Rs. 20,000 (1.5 Tonne Capacity)
Sales Value Computation
| Particulars |
Ist Yr. |
IInd Yr. |
IIIrd Yr. |
| Capacity Utilization
|
70% |
75% |
80% |
| Production (Nos.) |
840 |
900 |
960 |
| Rate (each) |
20000 |
20500 |
21000 |
| Sale Value (in lakh)
|
168 |
184.5 |
201.6 |
Raw Material
Basic Raw Materials for manufacturing
of Air Conditioners are Compressor, G.I. Sheet, Fan Motor,
Blower, Condenser Fan, Starting Capacitor, Running Capacitor,
Wires, Relay Knob, Switch, Plastic Grill, F-22/134 A Gas.
Technical Aspects
Process of Manufacture
Manufacturing of Window type Air Conditioner
involves procuring of various components like Compressor,
Conductor, Coil, Copper Pipe Cabinet, Frame, Grill, Switches,
Wire etc.
Testing of equipments
Assembly
Charging of Gas
Final Testing.
The Various Components used are: Condensing Unit
Compressor (Kirloskar, Carrier, Shriram)
Condensor
Fan with motor (960 RPM)
Outer Casing
Evaporative Unit
Evaporative Coil (Feeder Lllyods or local)
Plastic Grill
Blower with motor
Air Filter
Other items required are : starting Capacitor,
Insulated Copper Pipe, F22/ 134A Gas, Nut Bolts, Rivets, Wires,
etc.
Quality Control and Standards
Air Conditioner is a consumer durable
item and hence its performance should be assured by strict
Quality Control. All bought out components should be tested
to avoid any gas leakage. After assembly, the performance
of the Air Conditioner should be tested as IS 1391, IS 7613
and IS 8148.
Pollution Control
The Freon 22 Gas is considered harmful
for Ozone layer and hence its escape to atmosphere must be
avoided at all costs. The Unit should adopt a strategy to
adopt new ozone friendly coolants such as HCFC; 134A etc.
Financial Aspects
A. Fixed Capital
| (i) Land and Building
|
(Rs. in Lakh) |
| 1. Land
and Site Development Land 200 Sq. Mtr. @ 6000/ Sq. mtr.
|
1200000
|
| 2. Cost
of Building 2000 Sq. ft @ Rs. 1500/Sq. ft. |
3000000
|
| Total |
4200000 |
(ii) Machinery and Equipments
| Sl. No.
|
Particulars
|
No. |
Amount
(In Rs.) |
| 1. |
Sheet Bending Machine
|
1 |
25000 |
| 2. |
Sheet Cutting Machine
|
1 |
28000 |
| 3. |
Hand Press |
1 |
12000 |
| 4. |
Portable Grinder - 1/2
HP |
1 |
6000 |
| 5. |
Drilling Machine - 1/2
HP |
1 |
10000 |
| 6. |
Riveting Machine - 1/2
HP |
1 |
9000 |
| 7. |
Vacuum Pump for charging
1 HP |
1 |
15000 |
| 8. |
Pressure Pump for Testing
1 HP |
1 |
14000 |
| 9. |
Charging Panel |
1 Set |
5000 |
| 10. |
Accetylene, Oxygen Cylinder,
Torch, hose etc. |
2 Sets |
28000 |
| 11. |
Swagging, Flaring, Soldering
Tools and Fixture |
L.S. |
25000 |
| 12. |
Spot Welding Machine
|
1 |
25000 |
| 13. |
Clamp Meter (digital)
|
1 |
4000 |
| 14. |
Spray Gun, Compressor,
etc. |
1 Set |
5000 |
| 15. |
Working Table, Chair
and Office equipments |
– |
50000 |
| 16. |
Generator Set & Bor
well(for Electricity & Water) |
|
100000 |
| Electrification
and Installation |
26100 |
|
Total
|
387100 |
| (iii) Pre-operative Expenses
|
50000 |
| Total Fixed Capital
Investment |
Rs |
| 1. Land and Building
|
4200000 |
| 2. Plant and Machinery
|
387100 |
| 3. Pre-Operative Expenses
|
50000 |
|
Total
|
4637100 |
B. Working Capital (per month)
(i) Personnel
| Sl. No.
|
Category
|
No. |
Salary
(Rs.) |
Amount
(In Rs.) |
| 1. |
Manager |
1 |
20000 |
20000 |
| 2. |
Sales Engineer |
1 |
12000 |
12000 |
| 3. |
Supervisor |
1 |
7000 |
7000 |
| 4. |
Clerk-cum-Accountant
|
1 |
7000 |
7000 |
| 5. |
Skilled workers |
6 |
6000 |
36000 |
| 6. |
Un-skilled Workers |
5 |
5000 |
25000 |
| 7. |
Watchman-cum-Peon |
2 |
3000 |
6000 |
|
Total
|
113000 |
| Add Perquisites
@ 22% |
24860 |
| Total
|
137860 |
(ii) Raw Material (per month)
| Sl. No.
|
Particulars
|
Qty. |
Unit |
Rate/Unit
(Rs.) |
Amount
(In Rs.) |
| 1. |
Compressor 1.5 Tonne
A/c |
100 |
Nos |
8000 |
800000 |
| 2. |
G.I. Sheet |
100 |
Nos |
1500 |
150000 |
| 3. |
Fan Motor |
100 |
Nos |
1000 |
100000 |
| 4. |
Blower |
100 |
Nos |
1700 |
170000 |
| 5. |
Condenser Fan |
100 |
Nos |
300 |
30000 |
| 6. |
Starting Capacitor |
100 |
Nos |
250 |
25000 |
| 7. |
Running Capacitor 36
MFD |
100 |
Nos |
320 |
32000 |
| 8. |
Wires, Relay, Knob, Switch,
etc. |
100 |
Set |
1000 |
100000 |
| 9. |
Capillary Copper |
100 |
Set |
800 |
80000 |
| 10. |
Plastic Grill |
100 |
Set |
300 |
30000 |
| 11. |
F-22/134 Gas |
200 |
Kg |
250 |
50000 |
| 12. |
Other Pretty items Materials
like Screw, Nut Bolts, Flux, etc. |
|
|
|
10000 |
|
Total
|
1577000 |
| (iii) Utilities |
(Rs.) |
| Power requirement 10
HP Electricity Charges (per month) |
3000 |
|
Total
|
3000 |
| (iv) Other Contingent
Expenses |
(Rs.) |
| Postage and Stationery/
Telephone charges |
5000 |
| Repair and Maintenance
|
5000 |
| Selling and Marketing
|
10000 |
| Travelling Expenses |
10000 |
| Miscellaneous Expenses
|
5000 |
|
Total
|
35000 |
| (v) Total Working Capital
(per month) (i + ii + iii + iv) |
1752860 |
C. Total Capital Investment
| (1) Fixed Capital |
4637100 |
| (2) Working Capital for
1½ months |
2629290 |
|
Total
|
7266390 |
Financial Analysis
| (1) Cost of Production
(per year) |
(Rs.) |
| 1. Recurring expenditure
|
21034320 |
| 2. Depreciation on land
and Building @ 5% |
210000 |
| 3. Depreciation on Machines/
Equipment @20% |
77420 |
| 4. Interest on Investment
@ 12% |
871967 |
|
Total
|
22193707 |
| (2) Sales/Turnover (per
annum) |
24000000 |
| By sale of
window type 1200 Nos. Rs.2,40,00,000 A-C 1.5 T Cap @ Rs.
20000 Each |
| |
|
| (3) Profit (per annum)
|
1806293 |
| (4) Net Profit Ratio
|
= |
Profit × 100
-------------------- |
| |
|
Total Sales |
| |
|
|
|
= |
1806293 × 100
------------------- |
| |
|
24000000 |
| |
= |
7.53% |
| |
|
|
| (5) Rate of Return |
= |
Profit × 100
--------------------------- |
| |
|
Total Investment |
| |
|
|
| |
= |
1806293 × 100
------------------- |
| |
|
7266390 |
| |
|
|
| |
= |
24.86 |
(6) Break-even Point
| Fixed Cost (per year)
|
(In Rs.) |
| Depreciation |
287420 |
| Interest on investment
|
871967 |
| 40% of Salary and wages
|
661728 |
| 40% of other contingent
expenses |
168000 |
| 40% of utilities |
14400 |
|
Total
|
2003515 |
| B.E.P |
= |
Fixed Cost × 100
-------------------- |
| |
|
Fixed Cost + Profit |
| |
|
|
| |
= |
2003515 × 100
--------------------- |
| |
|
2003515 +1806293 |
| |
|
|
| |
= |
52.59% |
Addresses of
Machinery Suppliers
1. M/s. Fridge Tools
Darya Ganj,
Delhi - 110002
2. M/s. Avery India Ltd.
Plot No. 50-59,
Sector - 25, Ballabhgarh,
Faridabad – 121004
3. M/s. Henco Corporation
P.B. No. 1645, 308,
Perin Nariman Street,
Behind Reserve Bank,
Fort, Mumbai – 400001
4. M/s. Parekh Machine Tools
5, Khetra Das Lane,
Beside Broadway Hotel,
Kolkata – 700012
5. M/s. Keshav Enterprises
E-211, Kishan Vihar,
Delhi–100041
6. M/s. Essential Machine Tools Pvt. Ltd.
5, Nyaymurthi G.N. Vaidya Marg,
P.O. Box No.2,
Behind State Bank,
Fort, Mumbai–400001
Addresses of Raw Material Suppliers
1. M/s. Quality Enterprises
Shop No. 8, Shree Nath,
Mulund (E),
Mumbai–400008
2. M/s. Mistcold Sales and Service Pvt. Ltd.
F-110, Lado Sarai,
Near Central Bank,
New Delhi–110030
3. M/s. Blowtech Air Devices Pvt. Ltd.
F-53, Sector 11,
Noida–201301 (U.P.)
4. M/s. Air Conditioning Components Company
Shop No.3, Accord Building,
Chakala, Opp. Videocon,
Andheri-Kurla Road, Andheri (E),
Mumbai–400069
5. M/s. Walia Refrigeration Co.
3796, David Street,
Darya Ganj,
New Delhi–110002
6. M/s. Seagul Fabricators Pvt. Ltd.
Industry House,
23-B, Mahal Industrial Estate,
Mahakali Caves Road, Andheri (E),
Mumbai–400093
7. M/s. Kirloskar Copeland Limited
Shree Meenakshi Nilayam,
30, Arcot Mudali Street,
T. Nagar,
Chennai–600017
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
