Automobile Silencer

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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