|
Casting for Auto Locks
| Product Code |
: |
N.A. |
| Quality and Standards |
: |
As per BIS. |
| Uploaded
on |
: |
February
2007 |
Introduction
Zincs castings of various sizes and shape
are used in Auto Locks Assembly. Usually die casting zinc
alloy is used for this purpose due to:
1. High productivity
2. Good as Casting surface finish and
appearance
3. Do not require much machining
4. Can be cast within close dimensional
tolerance
5. Their section can be cast with case.
6. Very Low metal wastage
7. Very Low rejection.
Market Potential
Open market and Automobile units are in
need of the Auto Locks. Hence there is good scope for this
product. It is better to do the production of Zinc diecasting
for Auto Locks near the Auto Lock Manufacturing units‘
Cluster. There is very good scope in and around Aligarh city
which has cluster group of Auto locks manufacturing units.
Basis and Presumptions
| 1. |
Number of shifts |
Single shift of 8 hrs. |
| 2. |
Working days per Annum |
300 |
| 3. |
Working efficiency |
75% |
| 4. |
Time period for achieving full capacity
utilisation |
3 years |
| 5. |
Labour wages |
As per the minimum Wages Act of State
Govt. |
| 6. |
Margin money |
25% on an average of project cost |
| 7. |
Interest rate on fixed and working
capital. |
15% on average. |
| 8. |
Estimated life of the project |
20 Years |
| 9. |
Land cost and construction cost |
It has been assumed that the project
is established in rented shed. |
| 10. |
Cost of Machinery and Equipments |
Prevailing cost of the Market |
| 11. |
Seeing present practice, it has been
assumed that the die and Raw material will be supplied
by the Lock Assemblers. |
|
Implementation Schedule
| Nature of Activities |
Period in month (Estimated)
|
| 1. |
Scheme Preparation and
Approval |
1 month |
| 2. |
SSI Provisional registration |
15 days |
| 3. |
Sanction of loan required
if any |
3 months |
| 4. |
Clearance from State
Pollution Control Board |
2 months |
| 5. |
Placement of order for
delivery of machinery |
3 months |
| 6. |
Installation of machinery |
1 month |
| 7. |
Power connection |
3 months |
| 8. |
Trial Run |
5 months |
| 9. |
Commencement of regular
production |
After 5 months |
Technical Aspects
Process of Manufacture
Melting of zinc Ingots (4500C) - Clearing
- Diecasting - ejection of casting - runner breaking - Primary
inspection - Fitting - Final inspection - Buffing - despatch.
Quality Control
and Standards
As per customer’s specification.
Die cast components should be free from blow holes, pin holes,
shrinkage, coldshut etc. They should be free from dimensional
inaccuracies. Zinc alloy should be as per specification of
the customer. Generally Zinc alloy (IS MAC-3) having electrolytic
Zinc with 4-6% Al is used for this purpose. Raw material is
expected to be supplied by the lock assemblers.
Production Capacity (per annum)
| Quantity |
: |
1.50 Lakhs |
| Value |
: |
Rs. 12 Lakhs |
Pollution Control
There is not much problem of pollution.
However, powerful exhaust is required for exhaust of smokes
from the shed.
No Objection Certificate has to be obtained
from State Pollution Control Board.
Energy Conservation
i) Maximum utilisation of machine has
to be done to consume metal from the melting Furnace.
ii) The Furnace should be provided with
thermocouple and automatic temperature control devices.
iii) Opening of the Furnace shouldbe kept
closed while not in use.
iv) Energy audit of the unit has to be
done on a regular basis.
v) Preheating of charge should be done
by keeping few ingots on holding furnace.
vi) The Furnace should be properly insulated
to reduce radiation.
Financial Aspects
A. Fixed Capital
| (i) Land and Building |
(Rs.) |
| Rented area 300 sq. mtrs.
@ Rs. 3000 per month |
9,00,000 |
(ii) Machinery and Equipments
| Sl. No. |
Description |
Ind/Imp |
Qty. |
Amount (In Rs.) |
| 1. |
Horizontal Hot chamber pressure die
casting M/c capacity 400 gm/ shot with control panel and
accessories |
Ind. |
1 No. |
2,00,000 |
| 2. |
Electrical Resistance furnace for
melting zinc alloy |
Ind. |
1 No. |
1,00,000 |
| 3. |
Arc welding machine |
Ind. |
1 No. |
15,000 |
| 4. |
Fitting equipment and Buffing equipments
|
" |
- |
15,000 |
| 5. |
Bench drilling machine (1 HP) |
" |
- |
10,000 |
| 6. |
Weighing Machine (Platform type)
200 kg cap. |
|
|
10,000 |
| 7. |
Air compressor (3 HP) |
|
|
25,000 |
| 8. |
Pedestal Grinder (2 HP) |
|
|
10,000 |
| 9. |
Flexible shaft grinder (2 HP) |
|
|
10,000 |
| 10. |
Bench grinder double ended (1/2 HP)
|
|
|
8,000 |
| 11. |
Pheusmatic grinder |
Ind. |
1 No. |
4,000 |
| 12. |
Material Handling equipments |
" |
|
5,000 |
| 13. |
Testing Equipments |
Ind |
|
20,000 |
| 14. |
Pollution Control Equipment (Exhaust) |
Ind |
|
10,000 |
| 15. |
Energy conservation facilities |
|
|
Already included in the
accessories of Furnace |
| 16. |
Cost of power connection including
transformer |
|
|
1,00,000 |
| 17. |
Electrification and Installation
charges |
|
|
50,000 |
| 18. |
Tools and other fixtures |
|
|
20,000 |
| 19. |
Office equipment/working tables |
|
|
20,000 |
|
Total
|
6,32,000 |
| (iii) Pre-operative Expenses |
Rs. 50,000 |
| Total Fixed Capital |
= 2 + 3 (As shed is rented) |
| |
= Rs. 6,82,000 |
B. Working Capital (per month)
(i) Personnel
| a) Administrative
Supervisory |
(Rs.) |
| 1. |
Manager |
1 No. |
Rs. 4,000 |
4,000 |
| 2. |
Engineer cum-Supervisor
|
1 No. |
Rs. 4,000 |
4,000 |
| 3. |
Accountant (Part-time)
|
1 No. |
Rs. 1,000 |
1,000 |
| 4. |
Clerk cum Typist (Part-time)
|
1 No. |
Rs. 1,000 |
1,000 |
| (b) Technical Skilled
and Unskilled |
(Rs.) |
| 1. |
Skilled worker |
1 No. |
Rs. 3,000 |
3,000 |
| 2. |
Semi-skilled worker |
1 No. |
Rs. 2,500 |
2,500 |
| 3. |
Unskilled worker |
2 Nos. |
Rs. 2,000 |
4,000 |
| 4. |
Peon–cum–watchman |
1 Nos. |
Rs. 2,000 |
2,000 |
| |
Total |
|
|
21,500 |
| |
Perquisites @ 15% |
|
|
3,225 |
|
Total
|
24,725 |
| (ii) Raw
Material (per month) |
(Rs.)
|
| 1. |
Zinc Alloy
ingots |
Ind (Alloy
ingots will be supplied by the customer) 5% Burning loss
will also be allowed.) |
|
| 2. |
Various
consumables |
Ind |
20,000 |
|
Total
|
20,000
|
| (iii) Utilities (per month) |
(Rs.) |
| Power |
5,000 |
| Water and Misc. |
1,000 |
|
Total
|
6,000 |
| (iv) Other Contingent Expenses
(per month) |
(Rs.) |
| Rent |
3,000 |
| Telephone |
1,000 |
| Consumable stores |
500 |
| Transport charges |
1,000 |
| Advertisement and publicity |
500 |
| Postage and stationery |
500 |
| Insurance taxes, and other misc exp. |
3,000 |
| Repairs and maintenance |
1,000 |
|
Total
|
10,500 |
(v) Total Recurring Expenditure
(per month)
| (i) + (ii) + (iii) + (iv) |
= |
Rs. 61,225 |
| (vi) Total Working Capital (for 3
Months) |
= |
Rs. 1,83,675 |
C. Total Capital Investment
| i) |
Fixed capital |
Rs. 6,82,000 |
| ii) |
Working capital (3 months) |
Rs. 1,83,675 |
| |
Total |
Rs. 8,65,675 |
Machinery Utilisation
- Working efficiency—75%
- Single shift
- 25 working days in a month.
Financial Analysis
| (1) Cost of Production
(per year) |
(Rs.) |
| a) |
Total Recurring cost |
7,34,700 |
| b) |
Depreciation on machinery @ 10% |
49,200 |
| c) |
Depreciation on furnace @ 20% |
20,000 |
| d) |
Depreciation on tools and fixture
@ 25% |
5,000 |
| e) |
Depreciation on office equipment
@ 20% |
3,000 |
| f) |
Interest on total investment @ 15%
|
1,29,851 |
|
Total
|
9,41,751 |
(2) Turnover
(per year)
| Item |
Qty. |
Rate (In Rs.) |
Value (Rs.) |
Zinc die casting for
Auto Locks per shot of 400 grm shot about 3-4 various
castings like Roter, Body casting etc. |
1,50,000 shot |
@ Rs. 8 per shots conversion
charges |
12,00,000 |
| (3) Net Profit (per
year) Before Income Tax |
| |
= |
Total Sales – Total
Cost of Production |
| |
= |
Rs. 2,58,249 |
| (4) Net Profit Ratio
|
|
|
| |
|
Net Profit |
| |
= |
--------------- |
| |
|
Turnover ×100 |
| |
|
|
| |
= |
21.5% |
| (5) Rate of Return |
|
|
| |
|
Net Profit per year |
| |
= |
--------------------- |
| |
|
Total Investment ×100
|
| |
|
|
| |
= |
29.83% |
(6) Break-even
Point
| Fixed Cost (per annum) |
(Rs.) |
| a) |
Depreciation on machines and equipment
tools, fixtures and office equipments |
77,200 |
| b) |
Rent (Annual) |
36,000 |
| c) |
Interest on Total Investment |
1,29,851 |
| d) |
Insurance |
24,000 |
| e) |
40% of salary and wages |
1,18,680 |
| f) |
40% of other contingent expenses
excluding rent and insurance |
26,400 |
|
Total
|
4,12,131 |
| B.E.P. |
|
|
| |
|
Annual fixed cost ×100
|
| |
= |
-------------------------- |
| |
|
Annual fixed cost + Profit
|
| |
|
|
| |
|
412131×100 |
| |
= |
---------------- |
| |
|
670380 |
| |
|
|
| |
= |
61.47% |
Additional Information
In this Project Die and Raw material will
be supplied by the customer as per present practice in the
field of die casting.
Addresses of Machinery and Equipment
Suppliers
1. M/s. H.M.T. Limited
Die casting and Plastic Machinery
Division, HMT P.O., Bangalore-31
2. M/s. P.K. Engineering Works
B-1, Industrial Estate, Aligarh. U.P.
Addresses of
Raw Material Suppliers
1. M/s. Hindustan Zinc Limited
2. M/s. Minerals and Metals Trading Corpn.
of India Limited.
1-8-32/15, Bapubagh, Panderghast
Road, Secunderabad-3
3. M/s. S.S. Agarwal and Co.
Sabzi Mandi, Kanwari Ganj,
Aligarh, U.P.
Addresses of
Chemical Suppliers
1. M/s. Greaves Foseco Limited
Chinchwad, Pune-411019
2. M/s. I.V.P. Limited
Regd. Office, Shashikant Nedij
Marg, Ghorupodio, Mumbai-33
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
