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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

Motive Power 38 KW.

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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