|
Domestic Pressure Cookers
| Product Code |
: |
345301005 |
| Quality and Standards
|
: |
IS 2347:1995 for Domestic
Pressure Cookers
IS 1766:1994 on Rubber Gaskets for Cookers |
| Production Capacity |
: |
Qty. : 54000Nos. (Per
annum)
Value : Rs. 40088000 Lakhs |
| Uploaded on |
: |
April 2007 |
Introduction
The pressure cookers are extensively used
in household for preparing food. The pressure cookers have
preference over the conventional cooking utensils due to the
advantage of retaining the nutritive value and flavour of
the cooked food and less time required for cooking and thus
effecting considerable savings in time and fuel. It is a closed
cooking vessel for use with external heat source, capable
of maintaining working steam pressure of 1.0 Kg.Sq. cm. The
full liquid capacity of vessel i.e. total internal volume
with lid in position, ranges from 2 to 10 litres capacity.
But in market, the, Pressure Cookers of 3 and 5 litre capacity
are mostly demanded by the customers. This project profile
envisages the manufacturing of 5 ltrs. capacity cookers.
It is a well known fact that a pressure
cooker cooks food at a pressure higher than that of ambient
pressure, thus necessitating sufficient precaution required
in designing, manufacturing and use of domestic pressure cooker
to safeguard against accidents in the kitchen.
Market Potential
It has been observed, keeping in view
the average family, that medium size/capacity pressure cookers
have greater market. With the rapid advancement in the general
living standards of the people, the demand of pressure cookers
is increasing day by day. Accordingly, there is great scope
for setting up of the new units for manufacture of pressure
cookers to standard specifications.
Basis and Presumptions
1. The Project Profile has been prepared
on the basis of double shift of 8 hours each day, 25 days
in a month and at 75% efficiency.
2. It is presumed that in the lst year, the capacity utilisation
will be 60% followed by 70% in the next year and 80% in the
subsequent years.
3. The rates quoted in respect 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
@ 12% on an average, whether financed by bankers or by Financial
Corporation.
5. Margin money required is minimum 30% of the project investment.
6. Building is of own
7. The rates quoted in respect of machines, equipment and
raw materials are those prevailing at the time of preparation
of the 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 |
| 1. |
Preparation of Project
Report: |
|
| |
a) Calling quotations
|
1 month |
| |
b) Preparation |
2 months |
| 2. |
Provisional Registration
as SSI |
1 week |
| 3. |
Financial Arrangement
|
2 months |
| 4. |
Purchase and procurement
of machines and equipments |
2 months |
| 5. |
Installation of Machinery
|
1 month |
| 6. |
Electrification |
1 month |
| 7. |
Recruitment of Staff
|
1 month |
Technical Aspects
Process of Manufacture
The pressure cooker consists of components
like main body, lid, regulator, gasket, fusible plug, handles,
lugs etc. The main body and lid of the pressure cooker are
manufactured of aluminum alloy sheet/Circles of different
thicknesses depending upon the size and specifications of
the Cooker. The components i.e. pressure regulator, Bakelite
Handles and Lugs, Rubber Gasket, Fusible Plugs, Screws, Rivets,
Packing Boxes etc. are usually purchased from outside sources
by the pressure cooker manufacturers. In the manufacturing
of pressure cookers operations like circle cutting, deep drawing
of body, drawing of lid, trimming of body and lid, notching
of body, drilling of holes in body and lid, fixing of lugs,
handles, vent pipe, buffing and polishing, testing, packing
etc. are involved.
Quality Control
and Standards
The Indian Standard Specification No. IS 2347:1995 for domestic
pressure cooker and IS 1766:1994 for Rubber Gaskets for cookers
and other relevant specifications prepared by the BIS should
be followed for quality control and various tests. The manufacturer
should have arrangement to carry out the important tests in
the factory premises.
Production Capacity (per annum)
| Quantity(per annum)
|
Value (Rs.) |
| 54000 No. |
40088000 |
Pollution Control
There will not be any pollution in the press shop and assembly
shop. However, exhaust fans and dust collectors will be installed
in the polishing and buffing section to control the air pollution.
Energy Conservation
All the machines are to be provided with
separate electric motors to avoid idle running. Shunt capacitors
will be installed to improve the power factor. Adequate day
light provisions are to be made in the factory shed by providing
transparent roof sheets.
Financial Aspects
A Fixed Capital
| (i) Land and Building
(per month) |
(In Rs.) |
| Total Built up Area &
covered area: |
500 Sq. mtrs.@ Rs 6000 /
Sq Mtr |
3000000 |
| Store and office |
100 Sq Mtr @ Rs 7000/
Sq Mtr |
700000 |
| Working shed |
350 Sq.mtr. |
|
| a) Machine shop |
150 sq mtrs. @7000
Sq. mtr |
1050000 |
| b) Packing Section, etc.
|
75 sq mtr @4000
|
300000 |
| c) Buffing and Polishing
section |
75 sq mtr @ 4000
|
300000 |
|
Total
|
5350000 |
(ii) Machinery and Equipment
| Sl. No. |
Description |
No. |
HP |
Total
(In Rs.) |
| 1. |
Guillotine shearing machine
1250mm × 8 S.W.G. capacity (aluminium) complete
with standard accessories, electric motor, switch, starter
etc. |
1 |
5 |
300000 |
| 2. |
Heavy duty circle cutting
machine, 600 mm dia capacity × 8 S.W.G. (aluminium)
complete with standard accessories, electric motor, switch,
starter etc. |
1 |
2 |
45000 |
| 3. |
Deep Drawing double action
toggle press No.5 complete with standard accessories,
electric motor, switch, starter etc. |
1 |
15 |
700000 |
| 4. |
Hydraulic Press 50 tonne
cap. complete with standard accessories, electric motor,
switch, starter etc. |
1 |
3 |
250000 |
| 5. |
Power press 60 tonne
cap. complete with electric motor, switch, starter etc.
|
1 |
5 |
250000 |
| 6. |
Lathe Machine 1820 mm
bed length complete with standard accessories, electric
motor, switch, starter etc. |
1 |
2 |
150000 |
| 7. |
Drilling machine bench
type 12 mm cap. complete with standard accessories, electric
motor, switch, starter etc. |
1 |
1 |
12500 |
| 8. |
Double ended bench grinder
200 mm wheel dia motorised |
2 |
2 |
18000 |
| 9. |
Double ended Buffing
and polishing Machine, motorised |
2 |
4 |
30000 |
| 10. |
Testing equipments like
Hydraulic pressure test, Air leakage test, Testing of
pressure regulating device etc. |
L.S. |
— |
80000 |
| 11. |
Workshop tools, Press
Tools, Measuring tools, Work Benches etc. |
L.S. |
— |
100000 |
|
Total
|
1935500 |
| Taxes, Electrification
and Installation Charges including cost of power connection
and security deposit @ 40% of cost of machinery and equipments.
|
774200 |
| Cost of Office
Equipment, Furniture etc. |
80000 |
| Water System(Bore
well & overhead tank) |
50000 |
| Generator
set (for electricity backup) |
200000 |
| (iii) Pre-operative
Expenses |
45000 |
| Total Fixed
Capital (i + ii + iii) |
8434700 |
B. Working Capital (per month)
(i) Personnel
| Sl.No. |
Designation |
No. |
Salary (Rs.) |
Amount
(In Rs.) |
| (1) |
Engineer/Manager |
1 |
15000 |
15000 |
| (2) |
Accountant—cum-typist
Technical |
1 |
7000 |
7000 |
| (3) |
Foreman/Supervisor |
2 |
7000 |
14000 |
| (4) |
Skilled Workers |
10 |
4500 |
45000 |
| (5) |
Semi-Skilled Workers
|
8 |
5000 |
40000 |
| (6) |
Un-skilled Workers |
6 |
4500 |
27000 |
| (7) |
Peon/Chowkidar |
1 |
3000 |
3000 |
| (8) |
Part Timer Sweeper |
1 |
1800 |
1800 |
| |
Add Perquisites
@ 22% of salary |
33616 |
|
Total
|
186416 |
(ii) Raw Material (per month)
| Sl. No. |
Particulars |
Qty. Kg. |
Rate/ Kg.(Rs.) |
Total (Rs.) |
| 1. |
Aluminium alloy sheet/circles
of 8, 10, and 14 S.W.G. |
10800 |
150 |
1620000 |
| 2. |
Bought out components
i.e. pressure regulator, bakelite handles and lugs, gaskets,
fusible flugs, screws and rivets etc. in SETS |
10800 |
60 |
648000 |
| 3. |
Packing Boxes, Carton
tape, Printed Literature |
5500 |
25 |
137500 |
|
Total
|
2405500 |
| (iii) Utilities |
(Rs.) |
| Power |
30000 |
| Total |
30000 |
| (iv) Other Contingent
Expenses (per month) |
(Rs.) |
| i. Telephone |
2000 |
| ii. Postage and Stationery
|
2000 |
| iii. Transport Charges
|
20000 |
| i v. Repair and Maintenance
|
10000 |
| vi. Consumables like
carbide, gas welding rods, oxygen gas etc. |
25000 |
| vii. Advertisement and
Publicity & marketing |
50000 |
| viii. Insurance |
8000 |
| ix. Miscellaneous/sales
Expenses |
10000 |
|
Total
|
127000 |
| (v) Total Recurring
Expenses |
(Rs.) |
| 1. Raw Material |
2405500 |
| 2. Personnel |
186416 |
| 3. Utilities |
30000 |
| 4. Other contingent expenses
|
127000 |
|
Total
|
2748916 |
C. Total Capital Investment
| (1) Fixed Capital |
8434700 |
| (2) Working Capital (for
2 months) |
5497832 |
|
Total
|
13932532 |
Machinery Utilisation
All the machines will be fully utilized.
There won't be any idle capacity.
Financial Analysis
| (1) Cost of Production
(per year) |
(In Rs.) |
| 1. Total recurring cost
|
32986992 |
| 2. Depreciation on machinery
and equipments @ 10% (Including pre-operative expenses)
|
817470 |
| 3. Depreciation on tools,
instruments and laboratory equipment @ 20% |
36000 |
| 4. Depreciation on office
equipment @ 20% |
16000 |
| 5. Depreciation on Building
@ 5 % |
267500 |
| 6. Interest on total
investment @ 12% |
1671904 |
|
Total
|
35795866 |
(2) Turn-over (per year)
Sl.
No. |
Item |
Qty. Nos. |
Rate
(Rs.) |
Total
(In Rs.) |
| 1. |
Pressure Cookers |
54000 |
700 |
37800000 |
| 2. |
Sale of aluminium scrap
in Kg's |
20800 |
110 |
2288000 |
|
Total
|
40088000 |
| (3) Net Profit (per
year) (Before Income Tax) |
| Turnover - Production
Cost |
| Rs. 40088000 - 35528366
|
| = 4292134 |
| (4) Net Profit Ratio
|
= |
Net profit × 100
-------------------- |
| |
|
Turnover per year |
| |
|
|
| |
= |
4292134× 100
------------------- |
| |
|
40088000 |
| |
|
|
| |
= |
10.71 |
| |
|
|
| (5) Rate of Return |
= |
Net profit × 100
--------------------------- |
| |
|
Total Investment |
| |
|
|
| |
|
4292134 × 100
--------------- |
| |
|
35795866 |
| |
|
|
| |
= |
11.99 |
(6) Break-even Point
| Fixed Cost (per year)
|
(In Rs.) |
| 1. Total Depreciation
on Machinery, tools & office equipments etc |
869470 |
| 2. Depreciation on Building
@ 5 % |
267500 |
| 3. Total interest |
1671904 |
| 4. Insurance |
96000 |
| 5. 40% of salary and
wages |
894796.8 |
| 6. 40% of other contingent
expenses ( excluding insurance) |
571200 |
|
Total
|
4370871 |
| B.E.P |
= |
Fixed Cost × 100
--------------------- |
| |
|
Fixed Cost + Profit |
| |
|
|
| |
= |
4370871 × 100
----------------------- |
| |
|
4370871 + 4292134 |
| |
|
|
| |
= |
50.45 |
Addresses of
Machinery and Equipment Suppliers
1. M/s. Sant Machine Tools Corporation
2nd Street, Kalsi Nagar,
G.T. Road, Ludhiana.
2. M/s. Basant Mechanical Works (Regd.)
720-722, Industrial Area-B,
Ludhiana.
3. M/s. Birdi Mechanical Works
G.T. Road, Miller Ganj,
Ludhiana.
4. M/s. Katbro Machine Tools
G.T. Road, Miller Ganj,
Ludhiana.
5. M/s. Surinder Machinery Works (Regd.)
Nirankari St. No. 2, G.T. Road,
Miller Ganj,
Ludhiana.
6. M/s. Sargodha Machinery Corporation
Near Manju Cinema, G.T. Road,
Ludhiana.
7. M/s. Pal Mechanical Works
Street No. 2, Partap Nagar,
Ludhiana.
Raw Material Suppliers
Raw materials are easily available in the local market
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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