Automobile Body Building (Bus Body)
| Product Code |
374103003 |
| Quality and Standards |
Buyer's Specifications |
| Production Capacity |
Qty. : 324 Nos.(per annum)
Value : Rs. 13,51,00,000 |
Introduction
Automobile body (Bus Body) building is an important activity. The chasis are supplied by Automobile manufacturers, and body is built by automobile body builders as per the requirements of the customer and specifications of the different State Transport Undertakings.
Market Potential
Bus is used as the most common public transport vehicle in our country. Different State Transport Undertakings are plying their buses for commuting public from one place to another and from one State to another. Apart from these Undertakings, Private Bus Operators, travel agencies etc. are also operating buses on permit basis. With rapid changes in the society, now a days it has become necessary to provide good and efficient service to the public. Also with the rapid industrialisation, public is moving very frequently from one place to another using public transport. Since more and more development in the coming years, it is expected that demand of public transport, private transport and luxury transport in the form of buses will increase in the coming years.
Basis and Presumptions
- Working will be for 3 shifts per day of 08 hrs each at minimum 75% working efficiency to achieve the envisaged production capacity.
- A time period of three years has been considered for achieving the full capacity utilisation after start of commercial production.
- Labour wages are considered as per the prevailing market rates.
- Interest on fixed and working capital investment has been calculated at an average rate of 12% per annum.
- The cost of land and building has been calculated as per the prevailing market prices, and these rates are likely to vary from place to place.
Implementation Schedule
The following activities are to be completed and the approximate time for each activity is as mentioned against each of them
Activity |
Period (in Weeks) |
| Selection of product |
4 |
| Selection of Industrial site |
2 |
| Provisional registration |
2 |
| Preparation of project Report |
2 |
| Application for finance and getting Loan sanctioned |
24 |
| Recruitment of man power |
4 |
| Purchase and Installation of machinery |
14 |
| Trial Run |
1 |
It is necessary to obtain permanent Registration Certificate from the concerned District Industries Centre after commencement of commercial production.
Technical Aspects
Process of Manufacture
Metal sheets are cleaned and derusted for grease/oil if any. Then sheets are cut to size for forming different parts and these parts are formed on press brake. Now different parts and their subassemblies are fabricated as per their design and size. These parts and subassemblies are fabricated– together to make them a complete bus body. The complete body is painted as per the requirements of the customer. Shower test is carried out for leakage etc.
Quality Control and Standards
Production Capacity (per annum)
Production Capacity (per annum)
| Quantity |
324 Nos. |
| Value |
Rs 13,51,00,000 |
| Motive Power |
150 HP (Approx.) |
Pollution Control
The manufacturing/fabrication of bus body does not pose any problem for pollution. However, proper ventilation is to be done in shop floor area and painting area. Provision for pollution control equipments has been made in this Project Profile.
Energy Conservation
Suitable energy efficient motors are to be used on proposed machines with provision of recommended shunt capacitors.
Financial Aspects
| (i) Civil cost |
Amt. (In Rs.) |
| Land 4000 Sq.Mtrs. @ Rs. 3500/ Sq.Mtr. |
1,40,00,000 |
| Office - 100 Sq. Mtr @ Rs.7500/Sq.mtr. |
7,50,000 |
| Store –150 Sq. Mtr @Rs.6000/Sq.mtr. |
9,00,000 |
| Working shed - 2000 Sq. Mtr. @ Rs. 6000/Sq.mtr. bore well and raw water storage, DG set room, security room, laboratory, maintenance room, workers room |
1,20,00,000 |
| Paint Shop (Preferably Dust Proof) - 100 Sq. Mtr. @ Rs. 7000 per Sq. mtr. |
7,00,000 |
| Boundary wall, gates, roads inside the premises |
8,00,000 |
| Cost of land and building = 1,40,00,000 + 1,51,50,000 |
2,91,50,000 |
(ii) Machinery and Equipments
Description |
Ind./ Imp. |
Qty. |
Total
(In Rs.) |
| Motorised Guillotine Sheet Shearing Machine Capacity 2500×4 mm with 10 HP electric motor and starter etc. also fitted with front and back side gauges, sheet holding devices etc |
Ind. |
1 |
9,00,000 |
| Power operated Press Brake bending capacity 2440 × 4 mm, 100 Ton with 15 HP Main Motor and 2 HP raw adjustment Motor |
Ind. |
1 |
11,00,000 |
| Suspension type M.I.G. Welding system 250 Amp. along with power source, wire feeder, Torch and flow Calibrated Co2 regulator and Co2 heated with core assembly OPC. |
Ind. |
1 |
2,00,000 |
| Gas Welding set with all the Accessories etc. |
Ind. |
2 |
50,000 |
| Arc welding machine 300 Amps. 15 kVA Air Cooled complete with all the accessories |
Ind. |
5 |
2,00,000 |
| Air Compressor with painting equipment and accessories for painting |
Ind. |
1 |
2,00,000 |
| Different types of power/Air operated tools like Nut runner, drilling gun etc. |
Ind. |
L.S. |
4,00,000 |
| Drilling Machine 1½" capacity |
Ind. |
2 |
1,00,000 |
| Metal cutting bandsaw for cutting Aluminium sections complete with 2 HP Electric motor and accessories |
Ind. |
1 |
1,00,000 |
| Hoist chain pulley block crane and material handling trolley etc. |
Ind. |
L.S. |
5,00,000 |
Testing Equipment and others |
| Shower tester self fabricated (Nozzles to be arranged at different orientations to cover the entire portion of the vehicle) |
Ind. |
1 |
3,00,000 |
| Portable digital paint thickness checking equipment (Coating thickness checking) |
Ind. |
|
25,000 |
| Small measuring tools |
Ind. |
|
25,000 |
| Pollution Control Equipment |
|
|
2,00,000 |
| Bore well and raw water system, DG set with accessories |
|
|
15,00,000 |
| Excise and sales tax electrification and installation charges @ 40% cost of machinery and equipment |
|
|
27,20,000 |
| Cost of Jigs, Fixtures etc. |
|
L.S. |
5,00,000 |
| Cost of office equipment |
|
L.S. |
5,00,000 |
| Total plant and m/c cost |
95,20,000 |
| (iii) Preoperative expenses |
5,00,000 |
| Total Fixed Capital (i+ii+iii) Rs. 2,91,50,000 + 95,20,000 + 5,00,000 |
3,91,70,000 |
B. Working Capital (per month)
(i) Personnel
Description |
No. |
Salary (Rs.) |
Amount
(In Rs.) |
| (i) Administrative and Supervisory |
| General Manager |
1 |
30,000 |
30,000 |
| Commercial Manager, Sales and Marketing staff, finance and accounts staff and purchase staff and stores staff |
|
|
1,75,000 |
| Administrative officer and staff |
|
|
30,000 |
| Production manager, laboratory chemists maintenance engineers and staff, shift incharges |
|
|
2,00,000 |
| Chowkidar/Watchman |
7 |
|
21,000 |
| (ii) Technical |
|
|
|
| Skilled Workers |
40 |
5000 |
2.00,000 |
| Semi-skilled workers |
45 |
4000 |
1,80,000 |
| Un-skilled Workers |
40 |
3000 |
1,20,000 |
| Total |
|
|
9,56,000 |
| Add perquisites @ 22% |
2,10,000 |
| Total |
11,68,000 |
(ii) Raw Materials
Particulars |
Ind./ Imp. |
Qty. |
Rate (Rs.) |
Amount (In Rs.) ) |
| M.S. Channel 75 × 40 to × 50 mm |
Ind. |
9 MT |
40,000 |
3,60,000 |
| M.S. Equal Angle 25× 25×3 to 50×50×6 mm |
Ind. |
15 MT |
40,000 |
6,00,000 |
| M.S. Flat 50 to 70 mm wide |
Ind. |
3.750 MT |
40,000 |
1,50,000 |
| Aluminium chequered Plate 8 mm to ½ inch |
Ind. |
3 MT |
2,50,000 |
7,50,000 |
| CR/BP Sheet 10 to 26 SWG |
Ind. |
75 MT |
52,000 |
39,00,000 |
| M.S. Pipe 3/4" to 1" Dia |
Ind. |
1.500 MT |
40,000 |
60,000 |
| Aluminium Rolled Sections |
Ind. |
1.500 MT |
2,50,000 |
3,75,000 |
| Bought out items and hardware items |
Ind. |
L.S. |
|
2,00,000 |
| Other bought out items such as Raxine Ply,. PVC. Sheet. Foam OTC, Electrical fittings and fixtures, emblem etc. |
Ind. |
L.S. |
|
5,00,000 |
| Total |
68,95,000 |
(iii) Utilities
| |
(In Rs.) |
| Power |
150x0,8x0.73x24x25x4 |
2,10,000 |
| Water |
L.S. |
10,000 |
| Total |
2,20,000 |
(iv) Other Contingent Expenses
| |
(In Rs.) |
| Lubricants |
20,000 |
| Postage and Stationery and communication expenses |
30,000 |
| Consumable stores (Redoxide, Paint, Putty, Kerosene, Emery paper, Welding electrode, tools etc.) |
5,00,000 |
| Transport Charges |
25,000 |
| Advertisement and Publicity |
25,000 |
| Insurance Charges |
21,000 |
| Sales Expenses |
1,50,000 |
| Misc. Expenses |
50,000 |
| Total |
8,21,000 |
(v) Total Recurring Expenditure (per month)
| |
(In Rs.) |
| Staff and labour |
11,68,000 |
| Raw material |
68,95,000 |
| Utilities |
2,20,000 |
| Other Contingent Expenses |
8,21,000 |
| Total |
91,04,000 |
| (vi) Working capital for 3 months |
Rs. 2,71,35,000 |
C. Total Capital Investment
| (i) Fixed Capital |
Rs. 3,91,70,000 |
| (ii) Working capital for 3 months |
Rs. 2,73,12,000 |
| Total |
Rs. 6,64,82,000 |
Machinery Utilisation
It is assumed that machinery will be utilised at 75% efficiency.
Financial Analysis
Cost of Production (per year) |
(In Rs.) |
| Total recurring cost |
10,92,48,000 |
| Depreciation on building @ 5%
| 7,58,000 |
| Depreciation on Dies, Jigs and Fixtures etc. @ 20% |
1,00,000 |
| Depreciation on machinery and equipments @ 10% |
8,52,000 |
| Depreciation on office equipment 20% |
1,00,000 |
| Interest on total capital investment @ 12% |
79,78,000 |
| Total |
11,90,36,000 |
Turnover (per year)
Item |
Qty. |
Rate (Rs.) |
Total
(In Rs.) |
| Full size Bus body |
324 Nos. |
4,11,440 per piece |
13,33,00,000 |
| Sale of scrap |
90 MT |
20000/MT |
18,00,000 |
| Total |
13,51,00,000 |
Net Profit (per year) (Before Income Tax)
| Profit |
= Rs. 13,51,00,000 – 11,90,37,000 |
| |
= Rs. 1,60,63,000 |
Net Profit Ratio
| |
Net Profit (per year) ×100 |
| |
Total Sale |
| |
1,60,63,000 × 100 |
| |
= 13,51,00,000 |
| |
= 11.89% |
Rate of Return
| |
Net Profit (per year) × 100 |
| |
Total investment |
| |
1,60,63,000 × 100 |
| |
= 6,64,82,000 |
| |
= 24.16% |
Break-even Point
Fixed Cost |
(In Rs.) |
| Depreciation on machinery and equipment, tools, fixtures, office equipment and building |
18,10,000 |
| Interest on total investment |
79,57,000 |
| 40% of Salary and wages |
56,06,000 |
| 40% of utilities and other contingent expenses |
39,40,000 |
| Total |
1,93,13,000 |
| B.E.P |
Fixed cost × 100
|
| |
Fixed cost + Profit |
| |
1,93,34,000×100 |
| |
1,93,34,000 + 1,60,63,000 |
| |
= 54.62% |
Additional Information
The unit should install degreasing and phospating plant for obtaining long life and good quality paint of bus body to improve the quality of product .
Addresses of Machinery Suppliers
- M/s. Parekh Machine Tools
5, Khetra Das Lane, Behind Broad
Way Hotel, Kolkata.
- M/s. Economic Machine Tools
21, Dr. V.B. Gandhi Marg,
(Forbes Street), Fort,
Mumbai-1
- M/s. Master Engg. Works (Regd.)
G.T. Road (Dholewal), Opp. Indian
Oil Petrol Pump, Ludhiana-3.
- M/s. International Machine Tools Corporation
- Nyayamurti G.N. Vaidhya Marg,
Bank Street, Post Box No-2,
Behind State Bank of India,
Fort, Mumbai-1.
Raw Material Suppliers
- M/s. Steel Authority of India.
- State Laghu Udyog Nigam.
- Local Market.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
