Power Pack/Battery Eliminators
| Product Code (ASICC) | 77606 |
| Quality and Standards | As per customers specification |
| Production Capacity | Qty. : 120,000 Nos./ an Value : Rs. 2,25,00,000 |
| Uploaded on | March 2007 |
Introduction
Battery eliminator is used in place of ordinary dry batteries as power source for equipments like radio receivers AM/FM, tape recorders, calculators etc. and other low power operated equipments. Battery eliminator's output is DC voltage which usually varies from 1.5 V / 3 V to 12 Volts / upto 500 mA. This item is reserved for manufacture in the small scale sector.
Market Potential
There are large number of units in Small Scale Sector in the country manufacturing Battery Eliminators. Since they are used with radio receivers, tape recorders, calculators and other low power operated equipments/appliances, the demand of Battery Eliminator is also in proportional to their use. The Battery Eliminators are available in the range of 1.5V/3V/6V/9V/12V at 500 mA between Rs. 40 to Rs. 170 depending upon the transformers using CRGO sheets and good quality components.
The consumer electronics sector continues to consolidate its production base and has achieved a production level of Rs. 12700 Crores during 2001 and which achieved a growth rate of 10% in 2001 over 2000. The production of Battery Eliminators in 2001 was to the tune of Rs. 18.03 Millions.
Basis and Presumptions
- The basis for calculation of production capacity has been taken on single shift basis on 75% efficiency.
- The maximum capacity utilization on single shift basis for 300 days a year. During first year and second year of operations the capacity utilization is 60% and 80% respectively. The unit is expected to achieve full capacity utilization from the third year onwards.
- The salaries and wages, cost of raw materials, utilities, are based on the prevailing rates. These cost factors are likely to vary with time and location .
- Interest on term loan and working capital loan has been taken at the rate of 12% on an average. This rate may vary depending upon the policy of the financial institutions/agencies from time to time.
- The cost of machinery and equipments refer to a particular make/model and prices are approximate.
- The break-even point percentage indicated is of full capacity utilization.
- The project preparation cost etc. whenever required could be considered under pre-operative expenses.
- The essential production machinery and test equipment required for the project have been indicated. The unit may also utilize common test facilities available at Electronics Test and Development Centres (ETDCs) and Electronic Regional Test Laboratories (ERTLs) set up by the State Governments and STQC Directorate of the department of Information Technology, Ministry of Communication and Information Technology, to manufacture products conforming to Bureau of Indian Standards.
Implementation Schedule
The major activities in the implementation of the project has been listed and the average time for implementation of the project is estimated at 12 months
Name of Activity |
Period in Months (Estimated) |
| Preparation of project report | 1 |
| Registration and other formalities | 1 |
| Sanction of loan by financial institutions | 3 |
| Plant and Machinery | |
| (i) Placement of orders | 1 |
| (ii) Procurement | 2 |
| (iii) Power connection/ Electrification | 2 |
| (iv) Installation/Erection of machinery/Test Equipment | 2 |
| Procurement of Raw materials | 2 |
| Recruitment of Technical Personnel etc. | 2 |
| Trial Production | 11 |
| Commercial Production | 12 |
Notes
- Many of the above activities shall be initiated concurrently.
- Procurement of raw materials commences from the 8th month onwards.
- When imported plant and machinery are required the implementation period of project may vary from 12 months to 15 months.
Technical Aspects
Process of Manufacture
The battery eliminator consists of a transformer (using CRGO sheets), rectifying circuit and a filter. The output AC Voltage is stepped down and rectified and filtered. The components after checking to its value are assembled and soldered on the terminal strip/PCB. The PCB is mounted in the cabinet along with the transformer. Electro-mechanical components are fixed. After the wiring is completed the product is finally tested for its output voltage/current.
Quality Control and Standards
| Input Voltage | 220 Volts AC, 50 Hz. |
| Output Voltage | 1.5 to 12 Volts DC |
| Load | 500 mA |
| Ripple | Less than 2 mV |
Production Capacity
Quantity |
Value (Rs.) |
| 1,20,000 Nos per annum | 2,25,00,000 |
| Motive Power | 5 KVA |
Pollution Control
The Govt. accords utmost importance to control environmental pollution. The small-scale entrepreneurs should have an environmental friendly attitude and adopt pollution control measures by process modification and technology substitution.
India having acceded to the Montreal Protocol in Sept. 1992, the production and use of Ozone Depleting Substances (ODS) like Chlorofluoro Carbon (CFC), Carbon Tetrachloride, Halons and Methyl Chloroform etc. need to be phased out immediately with alternative chemicals/solvents. A notification for detailed Rules to regulate ODS phase out under the Environment Protection Act, 1986 have been put in place with effect from 19th July 2000.
The following steps are suggested which may help to control pollution in electronics industry wherever applicable
- In electronic industry fumes and gases are released during hand soldering/wave soldering/Dip soldering, which are harmful to people as well as environment and the end products. Alternate technologies may be used to phase out the existing polluting technologies. Numerous new fluxes have been developed containing 2-10% solids as opposed to the traditional 15-35% solids.
- Electronic industry uses CFC, Carbon Tetrachloride and Methyl Chloroform for cleaning of printed circuit boards after assembly to remove flux residues left after soldering, and various kinds of foams for packaging.
Many alternative solvents could replace CFC-113 and Methyl Chloroform in electronics cleaning. Other Chlorinated solvents such as Trichloroethylene, Perchloroethylene and Methylene Chloride have been used as effective cleaners in electronics industry for many years. Other organic solvents such as Ketones and Alcohols are effective in removing both solder fluxes and many polar contaminants.
Energy Conservation
With the growing energy needs and shortage coupled with rising energy cost, a greater thrust in energy efficiency in industrial sector has been given by the Govt. of India since 1980s. The Energy Conservation Act, 2001, has been enacted on 18th August 2001, which provides for efficient use of energy, its conservation and capacity building of Bureau of Energy Efficiency created under the Act.
The following steps may help for conservation of electrical energy
- Adoption of energy conserving technologies, production aids and testing facilities.
- Efficient management of process/ manufacturing machineries and systems, QC and testing equipments for yielding maximum Energy Conservation.
- Optimum use of electrical energy for heating during soldering process can be obtained by using efficient temperature controlled soldering and desoldering stations.
- Periodical maintenance of motors, compressors etc.
- Use of power factor correction capacitors. Proper selection and layout of lighting system; timely switching on-off of the lights; use of compact fluorescent lamps wherever possible etc.
Financial Aspects
Fixed Capital
| Land and Building Rs. | |
| Land : 500 Sq. Mtrs @ Rs. 4000 Sq. Mtr | 20,00,000 |
Civil construction: |
5,00,000 |
| Built up area, office, stores, security room, workers room etc. 100 Sq. Mtr @ Rs. 7000 / sq. mtr | 7,00,000 |
| Working shed 300 Sq. Mtr @ Rs. 6000 / Sq. Mt | 18,00,000 |
| Total (i) = (a) + (b) = Rs. 20,00,000.00 + Rs. 30,00,000.00 | Rs. 50,00,000.00 |
Machinery and Equipments
Description |
Qty. (Nos.) |
Rate (Rs.) |
Total (Rs.) |
| Oscilloscope 20 MHz | 1 | 74,000 | 74,000 |
| DC Regulated power supply 30V,5A | 1 | 10,000 | 10,000 |
| DC Regulated power supply 30V,2A | 1 | 8,000 | 8,000 |
| Insulator Tester, 1000V | 1 | 15,000 | 15,000 |
| Variac, 4 A | 1 | 5,000 | 5,000 |
| Digital true RMS Multimeter 3½ digits | 1 | 3500 | 10,000 |
| Digital Multimeter 4½ digits | 2 | 20,000 | 40,000 |
| Digital panel (Volt/Amp) meter | 2 Sets | 5000 | 10,000 |
| Drilling machine,¼ | 1 | 10000 | 10,000 |
| Grinding m/c 100 mm | 1 | 20,000 | 20,000 |
| Temp, controlled soldering stn. | 4 | 12,500 | 50,000 |
| Total | 2,43,000 | ||
| Excise, sales tax, electrification and installation charges @ 40% of machinery and bore well and electrical connection | 4,00,000 | ||
| Tools, Jigs and Fixtures etc. | 50,000 | ||
| Office equipment/working tables and furniture etc. | 5,00,000 | ||
| Total plant and m/c cost = Rs. 11,93,000 | |
| Pre-operative Expenses | Rs. 1,00,000 |
| Total Fixed Capital = (i) + (ii) + (iii) | 50,00,000 + 11,93,000 + 1,00,000 |
| Rs. 61,93,000 |
B. Working Capital (per month)
(i) Staff and Labour
Designation |
Strength (Nos.) |
Salary (Rs.) |
Total (Rs.) |
| Manager | 1 | 20,000 | 20,000 |
| Sales Manager and his team | 3 | 8333 | 25,000 |
| Peon/ Chowkidar | 5 | 3,000 | 15,000 |
| Skilled Workers | 10 | 5000 | 50,000 |
| Semi skilled workers | 6 | 4000 | 24,000 |
| Un skilled workers | 3 | 3000 | 9,000 |
| Total | 1,43,000 | ||
| Add Perquisites @ 22% of the salaries | 31,000 | ||
| Total | 1,74,000 | ||
(ii) Raw Materials (per month)
Description |
Qty. (Nos.) |
Rate (Rs.) |
Total (Rs.) |
| Transformer,230V/12V,9V,6V 500 mA | 1 | 55 | 55 |
| IC's Voltage Regulator | 1 | 8 | 8 |
| Diodes | 4 | 1 | 4 |
| Electrolytic Capacitor | 6 | 1.5 | 9 |
| PCB (Glass Epoxy) (Rs. 0.25 per sq.cm.) | 1 | 6.0 | 6 |
| Single phase 8-Way Switches (Rotary) | 1 | 8 | 8 |
| Switch with Indicator, 5A | 1 | 8 | 8 |
| Mains Lead (1.5m) with 2-Pin Plug (Moulded) | 1 | 8 | 8 |
| Cabinet (Metallic) and Packaging | 1 | 13 | 13 |
| Miscellaneous hardware, insulated terminals, wires etc. | L.S. | 8 | |
| Total | 127 | ||
| Total Requirement of Raw Materials for 10000 Nos. (per month) | Rs. 12,70,000 | ||
| (iii) Utilities (per month) | (Rs.) |
| Power | 10,000 |
| Water | 2,000 |
| Total | 12,000 |
(iv) Other Contingent Expenses (per month)
(Rs.) |
|
| Postage and stationery | 5,000 |
| Telephone | 10,000 |
| Consumable stores | 5000 |
| Repair and Maintenance | 5000 |
| Transport and Conveyance | 15000 |
| Advertisement and Publicity and marketing | 30000 |
| Insurance | 3,000 |
| Miscellaneous expenses | 5,000 |
| Total | 78,000 |
Total Recurring Expenses(per month) (i+ii+iii+iv) Rs. 1,74,000 + Rs.12,70,000 + Rs.12,000 + Rs. 78,000 |
= Rs. 15,34,000 |
C. Total Capital Investment
| Fixed Capital Rs. | 61,93,000 |
| Working Capital for 3 months Rs. | 46,02,000 |
| Total | Rs. 1,07,95,000 |
Cost of Production (per annum) |
(Rs.) |
| Total recurring expenditure | 1,84,08,000 |
| Depreciation on machinery and equipment @ 10 % | 24,000 |
| Depreciation on tools/jigs/ fixtures and office equipments @ 20% | 1,10,000 |
| Depreciation on civil construction @ 05% | 1,50,000 |
| Interest on capital investment@ 12% | 12,95,000 |
| Total | 1,99,87,000 |
Turnover (per annum)
| Item | Qty.(Nos.) | Unit rate (Rs.) | Value (Rs.) |
| Battery Eliminator Power Pack, 1.5/3V/6V/9V/12V/500mA | 12,0,000 | 187.5 | 2,25,00,000 |
Profit (per annum) (Before Taxes)
(Rs.) |
|
| Rs. 2,25,00,000 – 1,99,87,000 | |
| Rs. 25,13,000 |
Net Profit Ratio
Profit (per annum) × 100 Sales (per annum) |
|
| 25,13,000 × 100 | |
| 2,25,00,000 | |
| 11.17% |
Rate of Return
Profit (per annum) × 100 Total capital investment |
|
| 25,13,000 × 100 | |
| 1,07,95,000 | |
| 23,28% |
Break-even Point
Fixed Cost (per annum) |
(Rs.) |
| Total Depreciation | 2,84,000 |
| Interest on capital investment @12% | 12,95,000 |
| 40% Salaries and wages | 8,35,000 |
| 40% other contingent and utilities | 4,32,000 |
| Total | 28,46,000 |
| B.E.P | Fixed cost × 100 ---------------------------- Fixed Cost + Profit |
| 28,46,000 × 100 | |
| 28,46,000 + 25,13,000 | |
| 53.10% |
Additional Information
- The Project Profile may be modified/tailored to suit the individual entrepreneurship qualities/capacity, production programme and also to suit the locational characteristics, wherever applicable.
- The Electronics Technology is undergoing rapid strides of change and there is need for regular monitoring of the national and international technology scenario. The unit may, therefore, keep abreast with the new technologies in order to keep them in pace with the developments for global competition.
- Quality today is not only confined to the product or service alone. It also extends to the process and environment in which they are generated. The ISO 9000 defines standards for Quality Management Systems and ISO 14001 defines standards for Environmental Management System for acceptability at international level. The unit may therefore adopt these standards for global competition.
- The margin money recommended is 25% of the working capital requirement at an average. However, the percentage of margin money may vary as per bank's discretion.
Addresses of Machinery and Equipment Suppliers
- M/s. Aplab Limited
3rd Floor, 310-313, Chandralok
Complex, S.D. Road,
Secunderabad.500003
(Oscilloscope, Power Supplies,
Multimeters.) - M/s. Systronics
2-2-647/A/3, 11th Floor
Karur Vysya Bank Building,
Shivam Road, New Nallakunta,
Hyderabad-500013.
(Oscilloscope, Power Supplies,
Multimeters.) - M/s. Instrument Techniques Pvt. Ltd.
B-2, Co-operative Estate, Balanagar,
Hyderabad–500037
(Panel Meters, Insulation Power
Supplies, Multimeters, Testers.) - M/s. Automatic Electric Limited
108/117, Chandralok Complex,
S. D. Road,
Secunderabad - 500 003.
(Panel Meters, Variac.) - M/s. Signetic Systems Pvt. Ltd.
C-3/4-117, Mallapur,
Hyderabad - 500 076.
(Temp. controlled soldering/desoldering
stations.) - M/s. Ralli Wolf Limited
1-7-241/1, S.D. Road,
Secunderabad–500003.
(For m/c, hand tools and
accessories) - M/s. Motor Industries Co. Ltd.
(Bosch Group-Power Tools)
1-7-241/11, S. D. Road,
Secunderabad - 500 003.
(M/c and Tools and accessories) - M/s. C I T D
Balanagar,
Hyderabad - 500 037.
(For dies and other implements.) - M/s. BEL Abids
Hyderabad - 500 001.
(I.C'S Active, Passive components)
- M/s. C D I L
C-120, Naraina Industrial Area,
New Delhi–110 028
(I.C'S Active, Passive components) - M/s. Keltron
1-1300/3,
Syndicate Bank Complex,
Hyderabad–20.
(Registers and Capacitors.) - M/s. M. B. Electronics
4-3-258/A/F/411, Ist Floor,
Sri Electronics House,
Giriraja Lane, Bank Street,
Hyderabad–95.
(I.C'S Active, Passive Components.) - M/s. Saini Electronics
4-3-258/9-208,
Shree Electronics House,
Giriraj Lane, Bank Street,
Hyderabad-5000185.
(I.C'S Active and Passive components.) - M/s. Electronics Trade and
Technology Dev. Corporation Ltd.
15/48, Malcha Marg,
New Delhi-110021. - M/s. Ogswal Industries
1-1/10, Ferozguda,
Hyderabad–500011.
(Solder Wires.) - M/s. Cosmic Engineering Enterprises
Plot. No.3, Electronics Complex
(Ext.), Kushaiguda,
Hyderabad-500 062
(PCB's) - M/s. Electromagnetic Cores and Coils
MIG-5, APIIC Colony Moulai Ali,
Hyderabad-40.
(Transformer, Coils.)
Addresses of Raw Material Suppliers
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
