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Aluminium Seal for LPG Cylinder
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Product Code
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335902006
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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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:
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Qty. : 180 lakhs (per annum)
Value : Rs. 69,00,000.00
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| Uploaded on |
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February 2007 |
Introduction
The Aluminium Seal is used in the LPG
Cylinder as a security measure i.e. before delivery to the
customers. So no body can tamper with it and use the gas partly,
so as to avoid customer being cheated.
Market Potential
This type of product is required by all
the manufacturers of LPG Bottles, i.e. I.O.L., HPCL. BPCL
etc. The product has got increasing and steady demand as the
production of LPG cylinders is increasing day by day.
Basis and Presumptions
The basis of calculation of production
capacity is based on present local market rates on single
shift per day and efficiency at 70% of installed capacity.
The cost of machinery and equipments as indicated in this
profile refer to a particular make and prices are approximate.
| Working Hours |
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8 Hrs./day |
| No. of Shifts |
- |
1/ day. |
| Working days |
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300/year |
| Labour Charges |
- |
As per the Minimum Wages Act. |
Implementation Schedule
This project will take its time of 7 to
8 months from the date of approval. Break up of activities
with expected time and schedule is given below:
| Sl. No. |
Activity |
Period |
| 1. |
Market Survey and Scheme Preparation
|
2 Months |
| 2. |
SSI approval and registration |
1 Month |
| 3. |
Sanction of Loan and Disbursement
|
2 to 5 Months |
| 4. |
Placement of Order and Procurement
of machines |
5 to 6 Months |
| 5. |
Installation of machines and power
connection |
6 to 7 Months |
| 6. |
Trial run and Commencement of production
|
7 to 8 Months |
Technical Aspects
Process of Manufacture
Al-Sheets (0.2/0.3 mm or 36 SWG) of size
20" × 30" cutted from the continuous coil,
will be used as the raw material. The above raw material will
be fed into high speed power press for blanking and drawing.
After the operation of power press, the material will be processed
in the knotching press for keeping gap. Finally, the trimming
operation is done, for removal of extra material and polishing,
the seals are polished in the polishing barrel. The finished
Al-sheets are inspected, properly packed and despatched.
Quality Control and Standards
There is no Indian Standard Specification
for this item. All the parameters are covered by I.O.L./H.P.
Specification vide Ref. No. RD 15G 214.
Financial Aspects
A. Fixed Capital
| (i) Land and Building (Rented)
|
Amount (In Rs.) |
| Covered Area 400 Sq.Ft. |
10,000/ month |
(ii) Machinery and Equipments
| Sl. No. |
Description
|
Qty.
|
Rate (Rs.) |
Amount
(In Rs.) |
| 1. |
High Speed Power Press-10 Ton Cap.
Motorised |
4 |
50,000 |
2,00,000 |
| 2. |
Trimming Machine Motorised |
2 |
25,000 |
50,000 |
| 3. |
Knotching Machine-Hand operated
|
2 |
10,000 |
20,000 |
| 4. |
Treadle Shearing Machine |
1 |
50,000 |
50,000 |
| 5. |
Polishing Barrel |
2 |
25,000 |
50,000 |
| 6. |
Composite Tools and Dies, Work Bench
etc. |
L.S. |
- |
50,000 |
| 7. |
Installation and Electrification
Charge |
|
- |
50,000 |
| 8. |
Office Furniture |
L.S. |
- |
150,000 |
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Total
|
6,20,000 |
B. Working Capital (per month)
(i) Staff and Labour (per month)
| Sl. No. |
Description |
No. |
Amount (In Rs.)
|
| 1. |
Manager/Supervisor |
1 |
10,000 |
| 2. |
Machine Operator |
4 |
20,000 |
| 3. |
Skilled Worker |
4 |
16,000 |
| 4. |
Helper/Peon |
2 |
6,000 |
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Total
|
52,000 |
(ii) Raw Material (per month)
| Item |
Qty.
|
Rate (Rs.)
|
Amount
(In Rs.)
|
| Al-Sheet 0.2 mm thick in the form
of roll. |
3 Ton |
140/ Kg. |
4,20,000 |
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Total
|
4,20,000
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|
(iii) Other Contingent Expenses
(per month)
|
(In Rs.) |
| 1. |
Rent |
10,000 |
| 2. |
Power and Water |
5,000 |
| 3. |
Consumable Stores |
6,000 |
| 4. |
Packaging, Grease, Kerosene Oil etc.
|
20,000 |
| 5. |
Office Expenses |
10,000 |
|
Total
|
51,000 |
|
(iv) Total Working Capital (per
month)
|
(In Rs.) |
| 1 |
Raw Material |
4,20,000 |
| 2 |
Staff and Labour |
52,000 |
| 3 |
Other Contingent Expenses |
51,000 |
|
Total
|
5,23,000 |
C. Total Capital Investment
| 1. |
Machinery and Equipment |
Rs. 6,20,000 |
| 2. |
Working Capital (for 3 months) 5,23,000
× 3 |
Rs. 15,69,000 |
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Total
|
Rs. 21,89,000 |
Financial Analysis
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(1) Cost of Production (per annum)
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Amount
(In Rs.)
|
| 1. |
Recurring Expenditure
|
62,76,000
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| 2. |
Depreciation on M/c and office equipment
@ 15%
|
93,000
|
| 3. |
Interest on total capital investment
@ 12%
|
263,000
|
|
Total
|
66,32,000
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| (2) Turn-over (per year) |
Amount (In Rs.) |
| Sale of 180 Lac pieces of Al. seal
@ Rs. 38 each |
69,00,000 |
| By sale of scrap @ Rs 70 per Kg.
for 6000 Kgs. |
4,20,000 |
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Total
|
73,20,000 |
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(3) Net Profit
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Rs. 73,20,000 – 66,32,000
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= |
Rs. 6,88,000 |
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(4) Net Profit Ratio
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= |
Profit ×
100
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Sales |
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= |
6,88,000 × 100
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73,20,000 |
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|
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= |
9.4% |
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(5) Rate of Return
|
= |
Net Profit × 100
--------------------------- |
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Total Capital Investment
|
| |
|
|
| |
= |
6,88,000 × 100
------------------- |
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|
21,89,000 |
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= |
31.4% |
(6) Break-even Point
| Fixed Cost |
Amount (In Rs.) |
| Rent |
1,20,000 |
| Interest |
2,63,000 |
| Depreciation |
93,000 |
| 40% of Salary |
2,50,000 |
| 40% of Other Contingent Expenses
|
2,45,000 |
|
Total
|
9,71,000 |
| B.E.P |
= |
Fixed cost × 100
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Fixed cost + Profit |
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= |
9,71,000 × 100
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9,71,000 + 6,88,000 |
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= |
58.5% |
Addresses of
Machinery Suppliers
1. M/s. Batliboi and Co.
190–A, Forbes Street,
Fort, Mumbai-1.
2. M/s. H.P. Singh
75, Ganesh Ch. Avenue,
Kolkata–13.
3. M/s. Oriental Machinery Works
23, R.N. Mukherjee Road,
Kolkata-13.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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