Service Centre Electronics & Telecomm Equipment  

Uploaded on : May 2013

Product and Applications

The development of electronics industry has brought in new devices to cater to the needs of everyday life. The introduction of new devices with latest features calls for proper upkeep of the products as well as repair and servicing facilities. Unlike in other western countries where people just throw away the product if there is a fault or malfunctioning due to high cost of repairs in our country we still stick to the product after repairs just because of availability of cheap labour and marginal cost of repairs. With the growing popularity of electronic gadgets even in villages there is need for such service centers even on rural scale. Keeping in view the need for such facilities even the multinational companies introducing new products are establishing such servicing centers.

The proposed centre shall be so equipped so as to provide servicing facilities for common consumer products such as TVs, audio systems, streo amplifiers, Inverters, Emergency lights, computers, etc.

Industry Profile and Market Assessment

This being a service sector lt has demand both in the Industrial as well as Domestic sector. Further, there is demand for such centres both in rural and urban areas. The use and the popularity of consumer electronics gadgets has spread even to rural areas. Since it has both domestic and industrial applications it has a very vast market.. The villagers are using the gadgets freely and even travel large distances to get the gadgets repaired. The largest part of electronics hardware sector is accounted for by consumer electronics sector and is estimated to be nearly 38% of the total electronics production. This sector is estimated to have achieved a production of several hundred billion rupees. New and improved models of Consumer electronics products, mobile phone hand sets, computers, Laptops, Tablets, i- phones are being introduced in the market. This offers a good opportunity to the service sector. The service facilities provided by the manufacturers are limited to the important towns only, whereas the users of the products are spread far and wide even in rural areas. With the non availability of servicing in nearby areas the rural users are compelled to travel to towns where these are available or have to hire the services of illiterate fly by night mechanics. In case a proper service centre is made available nearby it will not only mitigate the hardship of the rural folk but will also go a long way in improving the sales of different products that were not being consumed in absence of servicing facilities. The electronic product need after sales servicing hence there is need for an effective network of sales and servicing facilities. With urbanization and fast growth of industry the demand for such products is ever increasing. All such circumstances call for extensive need of such centres equipped with proper and adequate testing and servicing facilities.

Manufacturing Process & Know How

There is no manufacturing involved. It being a service provider will be equipped with all the essential tools and gadgets, measuring instruments and such tools that are essentially required for servicing electronic equipment. The process involves identification of fault in the equipment, identifying the defective component, selecting its replacement if same is not available, rectifying the defect, running the equipment after replacement to check its performance etc. When any equipment is received at the centre, its fault is first located and efforts made to rectify. In case there is a component failure the defective part is replced and the repaired set is subjected to rigorous testing and run in actual conditions to check its performance. The equipment is handed over to the customer when its performance is satisfactory in all respects. The repair charges are estimated for the service provided and customer billed accordingly.

The installed production capacity is to repair & service 3380 nos of different types of equipment per annum on single shift basis working for 300 days per year.

Know how is available indigenously.

Plant and Machinery

• The main plant and machinery involved include such equipment/machines for servicing and fault diagnosis of equipment, assembly, testing and quality control, element testing equipment, insulation testers etc.

The same may be enumerated as:

• Multi meters,
• Oscilloscopes,
• Pattern Generator
• AM/FM Signal Generator
• Colour TV Kit
• Telephone Test Instrument
• Digital LCR meter,
• IC Tester,
• Variacs,
• Bench/Portable Drill M/C,
• Power supply (30V, 2A),
• Soldering/De Soldering Station
• High voltage TV probe,TV/VCR Remote Tester, Transistor Tester.

This may need an investment of nearly Rs. 1.89 lakhs. Dies, jigs and fixtures, office furniture etc need another Rs. 0.50 lakhs. The total cost of plant and machinery is estimated to be Rs 2.39 lakhs.
The total power requirement for the unit is estimated to be 5KVA, water will be required for general use only, and there is no special requirement of water for the manufacturing purpose.

Raw material and Components

The total cost of raw material and components such as integrated circuits, capacitors, displays, noise filters, PCBs etc, Transformers and other electronic components wires, cabinets has been estimated to be Rs. 3.00 lakhs per annum. The requirement of components will depend on the nature of defect in the equipment for repair. The suggestions are of general type of commonly needed parts. Any special component will be procured as and when needed.

 

Land and Building

For smooth operation of the unit it will require a built up area of 200 sq. mts. The same can be taken on rental basis.

Manpower

For smooth functioning of the unit the requirement of man power is expected to be around 4 persons. This includes Service engineer/production staff 1 nos. skill workers 2 nos. helpers 1 nos. The annual salary bill is estimated to be around Rs. 2.28 lakhs.

Sales Revenue

For the purpose of estimates and to arrive at profitability turn over has been estimated based on the approximate following repair mix. This list is just for estimate and the actual will depend on the nature of failure of equipment and the requirement of the market.

 

Sl.no	Item	Qty
1	Servicing /Repairs  of TV sets Colour	500
2	Servicing/Repair of CD/VCR/Audio system	600
3	Servicing/Repairs of Home appliances Invertors/Emergency light, Power supply system etc.	360
4	Servicing Repairs of Telephone systems, Instruments. Cordless phones, electronic toys, Games,Mobile phones	1200
5	Servicing, Repair of other Misc. eqpt.	720

Selling price varies depending on the nature of job and the extent of service. The annual income at installed capacity of service centre has bee taken as 3380 nos of repairs. The turnover estimated is Rs 8.80 lakhs.

Cost of Project

	Rs. lakhs
Land & Building	--
Plant & Machinery	2.39
Other assets	0.70
Contingencies	0.31
P & P expenses.	0.75
Margin money	0.42
Total	4.57

Means of finance

Term Loan	2.55
Promoter’s  contribution	2.02
Total	4.57

 

Profitability: (60% capacity)

	Rs. lakhs
Sales	8.89
Raw material	3.00
Salary	2.28
Utilities	0.23
Rep. Maintenance	0.15
Sales expenses	0.44
Admn.expenses	0.88
Depreciation	0.13
Int. W.C	0.04
Interest T.Loan	0.33
Cost of production	7.48
Profit	1.41

 

Requirement of Working Capital

			W.C	Margin money
Raw material & packing	15 days	30%	0.15	0.05
Stock of finished goods	15 days	25%	0.30	0.08
Working expenses	1 month	100%	0.28	0.28
Sale on credit	1 days	25%	0.03	0.01
Margin money for W.C				0.42

Break Even point

• 69%  at installed capacity

Machinery & material supplier

a) M/S Kamal Electronics.
Laxmi Building, J.C. Road,
Bangalore.

b) M/S Aplab Limited,
XL I/583, II Floor, Krishna Nivas,
Adv, Eshwara Iyer Road,
Kochi..

c) M/S Signet Electronics P Ltd.
Champak lal Industrial Estate,
Sion, Mumbai.

d) M/S Pieco Electronics & Electricals
Shiv Sagar Estate,
Dr. Annie Besant Road,
Mumbai.

e) M/S RX Electronic Centre,
Padmalayam Building,
M.G. Road, Pallimukku,
Kochi.

f) M/S Sysco Associates.
234, 11th. Main, Malleswaram,
Bangalore

g) M/S Jain Electronic Centre,
Emgee Square, Padma Junction,
M.G.Road, Kochi.

h) M/S Component & Devices,
Manikkirl Cross Road,
Kochi.

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com