Electronic Weighing Scales

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Product Code (ASICC) 7532
Quality and Standards IS 9281:1981
Production Capacity Qty.  : 2400 Nos. per annum
Value :  Rs. 4,45,24,000
Uploaded on March 2007

Introduction

Electronic weighing systems are used in industries and business establishments for weighing and segregating materials accurately for process sales. The main advantages of an electronic weighing system when compared with mechanical weighing systems are

  • Compactness and small size independent of capacity.
  • Ruggedness and high dependability.
  • High speed of response and rapid weighing.
  • Good accuracy.
  • Excellent flexibility to monitor multiple loads.
  • Analog and digital with print-out facility remote indication and parallel display.
  • Online processing through computer.

The electronic weighing system comprises the basic load cell, suitable signal conditioners and output recorders/ indicators giving both the analog and digital output for further processing. The signals from the load cell are amplified and fed to analog/digital converter, which provide an output in the digital format for display/ printing/processing etc. The strain gauge based load cell is the most popular weight transducer used in the electronic weighing system.


Market Potential

The total production in industrial electronic and control instrumentation is showing growth rate every year. This product requires a good marketing set up duly backed by after sales service facilities. If the price of the weighing scales is brought down and good after sales facility made available, there will be sufficient demand for this item.


Basis and Presumptions

  • The basis for calculation of production capacity has been taken on two shifts of 8 hrs each per day 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 manufacturing process involves the assembly of load cell, electronic circuits and electro mechanical hardware. Subsequently, the electronics assembly-the ICs, transistor, diodes, resistors, capacitors transformer, coils, relays, potentiometers are assembled on PCBs as per design.

The assembled PCBs are tested for performance. Subsequently the electronics assembly along with electromechanical assembly, hardware such as connectors/switches, terminals display, meters are assembled and housed in a metallic / fibre / plastic case with an appealing front panel. Finally the assembled unit is calibrated and tested as per the design specification.


Quality Control and Standards

Weighing range Upto 10 kgs.
Accuracy 0.02%
Output Digital display
(Fluorescent)
Power supply 230V, AC, 50 Hz

Production Capacity (per annum)

Quantity 2400 Nos.
Value Rs. 4,45,24,000
Motive Power 5 KVA (approx.)

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
Land: 1000 Sq. Meters @ Rs.3500 /sq. Mtr Value Rs. 35,00,000

Civil construction

Boundary wall, gates and road inside the factory Value

Rs.12,00,000

Factory shed, raw material and finished product stores, bore well, offices, security room, packing 700 Sq. Mtr @ Rs. 9000 / Sq. Mtr Value

Rs. 63,00,000
Civil Construction (a)+(b) Rs.85,00,000
Total Civil cost Rs. 1,20,00,000

Machinery and Equipments

Description

Qty.

Rate (Rs.)

Amount (Rs.)

Bench Drilling machine ½” 1 25,000 25,000
Digital Multi Meter (3½ digits) 3 30,000 90,000
Oscilloscope (0-20 MHz) 1 1,00,000 1,00,000
IC Tester/EPROM Programmer 1 50,000 50,000
Digital LCR Meter 1 75,000 75,000
Load Cell Simulator (Imported) 1 2,00,000 2,00,000
Portable Grinder 1 25,000 25,000
Power Supply (0-30V, 2A) 2 10,000 20,000
Standard Weights Brass LS LS 50,000
Multimeter (Analog) , UV Eraser, Variac (4A)     1,00,000
Bore well for water and water distribution     3,00,000
Total cost pl. & m/c (add 1 to 11     10,35,000
Excise, sales tax, installation and electrification @ 40% on machinery and equipments     4,14,000
Office Furniture and Equipments     5,00,000
Tools, Dies and Equipments     2,00,000
(i) Total pl & M/c cost     21,49,000
Pre-operative Expenses 3,00,000
Total fixed cost (i) + (ii) + (iii) 1,20,00,000 + 21,49,000 + 3,00,000 1,44,49,000

B. Working Capital (per month)

(i) Salaries and Wages

Designation

Qty.

Rate (Rs.)

Amount (Rs.)

General Manager 1 35,000 35,000
Production Manager 1 25,000 25,000
Sales and marketing team 5 15000 75,000
Finance and accounts team 3 13333 40,000
Administration, purchase and stores personnel 5 10000 50,000
Semi skilled workers 6 4000 24,000
Skilled workers 10 5000 50,000
Watchman and peon 6 3000 18,000
Total 3,17,000
Perquisites@ 22% 70.000
Total 3,87,000

(ii) Raw Material Requirements (per month)

Description

Qty. unit

Imp/Ind.

Cost (Rs.)

Cabinet/Housing (Metal) 200 450 90,000
Capacitors+ 200 250 50,000
Fluorescent display (Imp.) 200 1500 3,00,000
Integrated circuits (Imp) 200 1500 3,00,000
Load cell (strain gauge)(Imp) 200 5000 10,00,000
Mechanical hardware 200 600 1,20,000
Noise Filter (Imp) 200 250 50,000
PCB 200 450 90,000
Rectifier (Imp) 200 160 32,000
Resistors (Diodes and switches) 200 300 60,000
Transformer 200 150 30,000
Transistors 200 200 40,000
Wires and cables. Connectors, consumables, Packing materials, etc. 200 500 1,00,000
Total     22,62,000

(iii) Utilities (per month)

 

(Rs.)

Power 15,000
Water 2,000
Total 17,000

(iv) Other Contingent Expenses (per month)

 

(Rs.)

Advertisement 1,00,000
Conveyance expenses 25,000
Transport and packaging 40,000
Misc. expenses 50,000
Postage and stationery 5,000
Traveling expenses 1,00,000
Repair and maintenance 5,000
Insurance and taxes 9,000
Total 3,34,000
Working Capital (per month) (i + ii + iii + iv) Rs.3,87,000 + Rs. 22,62,000 + Rs. 17,000 + Rs. 3,34,000
  Rs. 30,00,000
Working Capital (for 3 month) Rs. 90,00,000

C. Total Capital Investment

Fixed Capital Rs. 1,44,49,000
Working Capital for 3 months Rs. 90,00,000
Total Rs. 2,34,49,000

Financial Analysis

Cost of Production (per annum)

(Rs.)

Depreciation on pl. & m/c @ 10% 1,45,000
Depreciation on office furniture & tools @ 20% 1,40,000
Depreciation on civil construction 4,25,000
Recurring expenditure 3,60,00,000
Interest on capital investment @ 12% 28,14,000
Total 3,95,24,000

Turnover (per annum)

2400 Nos. of Electronic weighing scales upto 10 kgs @ Rs. 9500 each Rs. 4,45,24,000

Profit (per annum) (Before Taxes)

 

(Rs.)

  Rs. 4,45,24,000 - Rs. 3,95,24,000
  Rs. 50,00,000

Net Profit Ratio

 

Profit (per annum) x 100
-------------------

Sales (per annum)

  50,00,000 × 100
  3,95,24,000
  12.65%

Rate of Return

 

Profit (per annum) ×100
-------------------

Total capital investment

  50,00,000 × 100
  2,34,49,000
  21.3%

Break-even Point

Fixed Cost (per annum)

(Rs.)

Total Depreciation 7,10,000
Interest on capital investment @12% 20,14,000
40% Salaries and wages 15,22,000
40% of other contingent expenses 16,03,000
Total 58,49,000
B.E.P Fixed cost ×100
----------------------------
Fixed cost + Profit
  58,49,000× 100
  58,49,000+ 50,00,000
  53.9%

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. Agronic Instrument (P) Ltd.
    201,Shiva-Shakti Industrial Estate,
    Mumbai-86.
  • M/s. Bergen Associates Pvt. Ltd.
    1082, Sector 27-B,
    Chandigarh-19.
  • M/s. BPL (India) Ltd.
    84, M. G. Road,
    Bangalore–560001.
  • M/s. Circuit Aids
    Inc.No. 5,
    Ranganathapura Magadi Road,
    Bangalore-79.
  • M/s. Navanidhi Electronics(P)Ltd.
    1-60/1 Snehapuri, Nacharaam,
    Hyderabad-7
  • M/s. Noble Electronics
    354,Lajpat Rai Market,
    Delhi-6.
  • M/s. Peico Electronics and Electrical
    Ltd.
    Shivasagar, Estate, Block-A,
    Dr. Annie Besant Road,
    Mumbai-12.
  • M/s. Quality Machine Tools
    34, J.C. Road, VISL Building,
    Bangalore-2.
  • M/s. Swastic Machine Tools
    4, Lata Chambers,
    Nashik-422 002.
  • M/s. Sysco Associates
    30/106 (New No.234)
    11th Main, Malleswaram,
    Bangalore-3

  • Addresses of Raw Material Suppliers

  • M/s. Amar Radio Corpn.
    11/1,Thiglar Periyanna Lane,
    SJP Road, Bangalore-2.
  • M/s. Applied Electronics Ltd.
    A-5,Wagle Industrial Estate,
    Thane-4,
    (Mumbai)
  • M/s. Bakumbhai Ambalal
    Electronics Dept.
    Kaiser-T-Hind Building,
    Ballard Estate, Mumbai-38.
  • M/s. Bangalore Electronics
    No.124, Sadarpatrappa Road,
    Bangalore-2.
  • M/s. Electronics Trade and
    Technology Dev.
    15/48,Malcha Marg,
    New Delhi-21.
  • M/s. General Electronics
    19,5th Floor, Tardeo Air
    Conditioned Market, Mumbai-34.
  • M/s. Inde Associates
    16, Rest House Crescent,
    Off Church Street,
    Bangalore-1.
  • M/s. Interco Ltd.
    456,Alexandra Road,
    14.00NOL Bldg.
    Singapore-0511.
  • M/s. Jairamadas and Sons P.Ltd.
    Mittal Towers, M.G.Road,
    Bangalore.
  • M/s. Micropack Ltd.
    Plot 16,Jigami Indl.Area,
    Anekal Taluk,
    Bangalore District–560 002.
  • M/s. Namtech Systems(P)Ltd.
    35, Dacosta Square,
    St.Thamas Town, Bangalore-84.
  • M/s. OEN Connectors Ltd.
    Vyattila, PB No.2, Cochin-19.
  • M/s. Rosemound Ine
    P.O. Box 35129, Minneapolis,
    MN 56435(612) 941-5560, USA
    (For scissors)
  • M/s. Saini Electronics
    Pushapadant Nivas,
    3, Chuman Lane,
    Dr. D. Bhadkamkar Marg.
    Mumbai-7.
  • M/s. Southern Electronics
    No.113,Sadarpatrappa Road,
    Bangalore-2.
  • M/s. Systronics
    202-1206, Harsha House, Near
    Milan Cinema, Karampura Road,
    New Delhi-110015.
  • M/s.Tomson Electronics
    Pulickkal Buildings,
    Pallimukku, MG Road,
    Cochin
  • M/s. Shilpa International
    107, Parklane,
    Secunderabad-3.

For further information please contact

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