Automobile Silencer
Product Code |
374761000 |
Quality and Standards |
Customer's Satisfaction |
Production Capacity |
Qty. 30,000 Nos. (per annum)
Value : Rs. 1,66,00,000.00 |
Uploaded on |
February 2007 |
Introduction
Automobile Silencer is a device used to reduce the noise produced by the engine. Silencer is used in automobile vehicles to reduce the noise produced by the exhaust gases of the engine. Silencer is also used in many other engines and generators. The size, shape and construction varies according to the type and size of the engine.
Market Potential
The automobile industry all over the world is growing at a very high rate and different vehicles are always seen on the road. The production of silencer thus has a very good potential as it can be sold as original equipment and also in the replacement market. With the growth of the economy and increase in road transport, the demand of silencer is growing. Since the demand of the automobile vehicles scooters, motorcycles, autorickshaw, moped etc. is increasing day by day in the country, there is good scope of auto silencer the demand of which is expected to increase by 8 to 10% in near future.
Basis and Presumptions
- It is based on 16 working hours a day and 25 days in a month and the break even efficiency has been calculated on 75% capacity utilisation.
- Labour and wages are mentioned as per prescribed minimum wages and the proprietor is considered as a Manager.
- Interest is considered @ 12% in the project for recurring and nonrecurring investment.
- The margin money as applicable to general categories of entrepreneurs may be 25% of the project cost.
- The cost of the land, construction charges, cost of machinery and equipment, raw materials and consumables, other contingent expenses etc. indicated in the profile are based on the prices prevailing at the time of project preparation and can be changed from time based upon local conditions.
Implementation Schedule
Technical Aspects
Process of Manufacture
The process of manufacturing auto silencer does not involve any special technology, it is a simple press working process. The sheets are cut into the required size and shape. These sheets are then given the desired shape with the help of power presses, edge folding machines and bending rollers. The mufflers are also made out of sheet with the help of presses. These mufflers are then gas welded in one half of the silencer, the other half of the silencer with MS tubing's according to the requirement and are gas welded. These are now assembled and spray painted. The silencers are then cleaned and packed for despatch.
Quality Control and Standards
Good workmanship and best quality of raw material must be used to satisfy the consumers.
Pollution Control
The assembled product will be spray painted or nickel plated for which arrangements for exhaust fans will be made in the plating section.
Energy Conservation
The energy conservation of this unit is on the low side since the low power motors are used in the production activity. The workers of the unit should be made aware of the need to conserve energy by switching off the energy sources when not required. Capacitors may be used at suitable points. All presses and machinery should be lubricated properly and regularly.
Financial Aspects
Fixed Capital
(i) Land Value :
Land: 1000 sq. Mtrs @ 3500 per Sq. Mtr Land value |
Rs. 35,00,000 |
(ii) Civil Construction Cost |
|
(a) Boundary wall, gates and road inside the factory |
Rs. 6,00,000 |
(b) Covered area of factory shed 500 Sq. Mtr @ Rs. 6000/ Sq. Mtr |
Rs. 30,00,000 |
(c) Raw material & finished goods store, maintenance room, laboratory and test room, workers room, security room, DG set, bore well and raw water storage and distribution, DG set room, office space for staff and management 500 sq. Mtrs @ Rs. 7000 Per Sq. Mtr. Total Value |
Rs. 35,00,000 |
Total civil construction cost (ii) (a) + (b) + (c) |
Rs. 71,00,000 |
Total civil cost (i) + (ii) |
Rs. 1,06,00,000 |
(ii) Machinery and Equipment
Description |
Imp./Ind |
Qty. |
Rate (Rs.) |
Amount
(In Rs.) |
Shearing machine 4' Blade, Size, cap 16 SWG 5 HP motor (Treadle operated) |
Ind. |
1 |
4,00,000 |
4,00,000 |
Power press 30 Ton cap.
(3 HP motor) |
Ind. |
1 |
3,00,000 |
3,00,000 |
Power press 5 Ton cap. with 1 HP motor |
Ind. |
2 |
75,000 |
150,000 |
Fly press No.18 |
Ind. |
2 |
50,000 |
1,00,000 |
Sheet Bending Roll 16SWG×1200mm cap. with 2HP motor |
Ind. |
1 |
100,000 |
100,000 |
D/E Bench grinder 8" wheel dia with ½ HP motor |
Ind. |
1 |
25,000 |
25,000 |
Edge folding machine |
Ind. |
1 |
50,000 |
50,000 |
Welding set (Gas) with Accessories |
Ind. |
2 |
25,000 |
50,000 |
Spot welding machine |
Ind. |
2 |
50,000 |
1,00,000 |
Raw water system, DG set and accessories |
Ind. |
L.S. |
|
10,00,000 |
Tools, dies, fixtures, jigs
and measuring instruments etc. |
Ind. |
L.S. |
|
2,00,000 |
Total |
|
|
|
24,75,000 |
Office furniture, almirah, chairs etc, work bench tables and racks |
|
L.S. |
|
7,00,000 |
Excise, sales tax electrification and other installation charges @ 40% of the cost of machinery and equipment |
|
|
|
9,90,000 |
Total |
41,65,000 |
(iii) Pre-operative Expenses |
|
L.S. |
|
3,00,000 |
Total Fixed Capital (i+ii+iii+) |
|
1,50,65,000 |
Working Capital (per month)
(i) Staff and Labour
Designation |
Nos. |
Rate (Rs.) |
Amount
(In Rs.) |
Supervisor/Foreman |
2 |
10,000 |
20,000 |
Skilled Workers |
8 |
6,000 |
48,000 |
Semi–Skilled Workers |
12 |
5,000 |
60,000 |
Storekeeper |
2 |
4,000 |
8,000 |
Commercial staff of sales, purchase, accounts and adminstration |
6 |
7,000 |
42,000 |
Helper |
4 |
3,000 |
6,000 |
Peon |
2 |
3,000 |
6,000 |
Chowkidar/watchman |
3 |
3,000 |
9,000 |
Total |
1,99,000 |
Add perquisites @ 22% of salary |
44,000 |
Total |
2,43,000 |
(ii) Raw Material
Particulars |
Qty. |
Rate (Rs.) |
Amount
(In Rs.) |
C.R.C.A. sheet |
8000 kg |
45/ Kg |
3,60,000 |
M.S. tube (mts.) |
1000 mtrs |
40/ Mtr. |
40,000 |
Total |
4,00,000 |
(iii) Utilities
|
|
Amt.(In Rs.) |
Power |
6000 kWH @ Rs. 4.00/unit |
24,000 |
Water |
|
2,000 |
Total |
|
26,000 |
(iv) Other Contingent Expenses
|
(In Rs.) |
Consumable Stores |
30,000 |
Postage and Stationery and communication expenses |
10,000 |
Transportation |
25,000 |
Repairs and Maintenance |
7,000 |
Advertisement and Publicity and marketing and sales expenses |
1,00,000 |
Miscellaneous |
20,000 |
Insurance |
9,000 |
Total |
2,01,000 |
(v) Total Recurring Expenditure (per month)
(v) Total Recurring Expenditure (per month) [i + ii + iii + iv] |
(Rs.) |
Staff and labour |
2,43,000 |
Raw material |
4,00,000 |
Utilities |
26,000 |
Other contingent expenses |
2,01,000 |
Total |
8,70,000 |
(vi) Total Working Capital (for 3 months) |
Rs. 26,10,000 |
Total Capital Investment
(i) Fixed Capital |
Rs. 1,50,65,000 |
(ii) Working Capital for 3 months |
Rs. 26,10,000 |
Total |
Rs.1,76,75,000 |
Financial Analysis
Cost of Production (per year) |
(In Rs.) |
Total Recurring Cost |
1,04,40,000 |
Dep. on plant and machinery @10% |
3,27,000 |
Dep. on tools and accessories @ 25% |
50,000 |
Dep. on office equipment @ 20% |
1,40,000 |
Interest on total capital investment @ 12% |
21,21,000 |
Dep. on civil construction @ 5% |
3,55,000 |
Total |
1,34,33,000 |
Turnover (per year)
Particulars |
Qty. |
Rate (Rs.) |
Amoun (In Rs.) |
By sale of large silencer |
20,000 |
415 |
83,00,000 |
By sale of small silencer |
10,000 |
830 |
83,00,000 |
Total |
|
|
1,66,00,000 |
Net Profit (per year)
|
Turnover–Cost of Production |
|
= Rs. 1,66,00,000–1,34,33,000 |
|
= Rs. 31,67,000 |
Profit Ratio
|
Net profit × 100 |
|
Total turnover |
|
31,67,000 × 100 |
|
1,66,00,000 |
|
= 19.08% |
Rate of Return
|
Net profit × 100 |
|
Total Investment |
|
31,67,000 × 100 |
|
1,76,75,000 |
|
= 17.91% |
Break-even Point
Fixed Cost |
(In Rs.) |
i) Depreciations |
8,72,000 |
ii) Investment on total capital investment @ 12% |
21,21,000 |
iii) 40% of the salary and wages |
11,66,000 |
iv) 40% of other contingent expenses |
9,65,000 |
Total Fixed Cost |
51,24,000 |
B.E.P |
Fixed cost × 100
|
|
Fixed cost + Profit |
|
51,24,000 × 100 |
|
51,24,000 + 31,67,000 |
|
= 61.8% |
Addresses of Machinery and Equipment Suppliers
- M/s. Amteep Machine Tools (P) Ltd.
14/7, Mathura Road,
Faridabad (Haryana)
- M/s. Tools Today (India)
D-52, Phase-V, Focal Point,
Ludhiana-141101.
- M/s. Jaymes Engg. Works
Birhana Road,
Kanpur (U.P.)
- M/s. Batliboi and Co.
Parliament Street,
New Delhi.
- M/s. Ashoka Machine Tools Corpn.
A-15, Mayapuri, Indl. Area,
New Delhi.
Addresses of Press Suppliers
- M/s. Amteep Machine Tools P. Ltd.
14/7, Mathura Road,
Faridabad (Haryana)
- M/s. Batliboi and Co.
G.T. Road, Miller Ganj,
Ludhiana.
- M/s. Birson Industries
262, Industrial Area "A",
Ludhiana.
Addresses of Testing and Measuring Equipment Suppliers
- M/s. PSl Sales (P) Ltd.
604, Hemkunt House,
6, Rajendra Place,
New Delhi.
- M/s. Accurate Sales and Service (P) Ltd.
Gange House,
67, Hadarpur Indl. Estate,
P. B. No. 1202,
Pune-410013.
- M/s. Bombay Tools (P) Ltd.
50, Nagdevi Cross Lane,
Mumbai-400003.
Raw Material Suppliers
Raw material can be purchased by the local suppliers available in the market.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com