38
Project Feasibility Report on Padlock Industry PRESENTED BY : DINESH NIKAM ROLL NO. : MT14IND013 DEPARTMENT : MECHANICAL ENGINEERING BRANCH : INDUSTRIAL ENGINEERING(2014-2015)

Pad lock industry dinesh nikam

Embed Size (px)

Citation preview

  1. 1. PRESENTED BY : DINESH NIKAM ROLL NO. : MT14IND013 DEPARTMENT : MECHANICAL ENGINEERING BRANCH : INDUSTRIAL ENGINEERING(2014-2015)
  2. 2. TABLE OF CONTENTS 1. Introduction 2. Basis and presumptions 3. Raw material study 4. Raw material suppliers 5. Demand study 6. Technical study 7. Quality control and standards 8. Location study 9. Implementation schedule 10. Financial study 11. Source of finance and taxation 12. Financial analysis 13. Machinery & equipment suppliers
  3. 3. 1. INTRODUCTION Lock manufacturing industry is one of the most important, popular and employment oriented . Small scale Industry comparatively with a small size of investment. The Return on Investment in such industries is higher. Locks are used for locking of doors, shutters of houses/shops, grill gates, trunks, shutters of godowns, suitcases, wooden cupboards, lockers etc.
  4. 4. 2. BASIS AND PRESUMPTIONS The production capacity of the unit has been worked out on the basis of single shift of 8 hours a day for 300 working days a year ( i.e.25 days a month ). The unit is expected to work at 70% efficiency of installed capacity with yield rate of 95%. Wages for labour, etc. have been considered as per the prevailing market rates in accordance with the Minimum Wages Act. The unit is assumed to run in a rented/leased building.
  5. 5. The cost of machinery and equipment's have been taken as per the rates quoted by manufacturers / suppliers. The cost of raw material and other inputs are based on current prices prevailing in local market. Interest rate for fixed and working capital investment have been calculated on an average rate of 16%.
  6. 6. 3. RAW MATERIAL STUDY Padlock consists of the following main components: COMPONENT MATERIAL U SHAPE ROD BRASS ROUND ROD BRASS PINS BRASS SHACKLE STEEL KEY BLANK BRASS BOLT BRASS
  7. 7. 4. RAW MATERIAL SUPPLIER Brass rod Aluminium World: No. 4/6/59-60, Opposite Hari Masjid, Old Mondha Road , Aurangabad - 431001, Maharashtra Key blank Shuban International Moti Bhuvan, Nagar Das Cross Road, Andheri East, Mumbai - 400069, Maharashtra
  8. 8. Shackle Rajguru Steel Industries No. 92, Kika Street, Gulalwadi, Mumbai - 400004, Maharashtra Brass pin and bolt B. M. Engineering A-101, Paras Nagar, ' A' Building, Navghar Road, Near Sneha Hospital Lane Bhayander East, Mumbai - 401105, Maharashtra
  9. 9. 5. DEMAND STUDY Open market and daily need product. Hence, there is Good scope for this product. Major customers : Institutional and commercial market: Institutional and commercial customers such as universities, hospitals, airports and shopping malls. Small and medium-sized customers: Such as stores and offices. Consumer market : Door and window manufacturers or specialized distribution channels.
  10. 10. 6. TECHNICAL STUDY Padlock is an old product in the market. Over the years, there are players who have introduced similar products. There arises a need to offer additional benefits to the customer at the same price in order to compete in the market. In existing padlock the key can used only in one direction. The modified key gives freedom to the customer of using the key in any direction.
  11. 11. The modified padlock with duo technology and reversible key at the same price makes it an Unique Selling Proposition (USP). The disadvantage of pin cylinder technology is that, its key can be copied easily. Ultra Duo technology (dimple technology) is more secured then pin lever technology because its key cannot be easily duplicated.
  12. 12. SR. NO SPECIFICATIONS PIN CYLINDER TECHNOLOGY ULTRA DUO TECHNOLOGY 1. KEY DESIGN Indentations on the edge Dimples on the surface 2. REVERSABILITY OF KEY Key can be used only in one direction Key is reversible 3. KEY DUPLICATION Easy to duplicate Difficult to duplicate
  13. 13. TECHNICAL DATA OF PADLCOK PADLOCK SIZE APPLICATION 40 MM Suitcases, Wooden Cupboards, Trunks, Carry Bag, Lockers, Cabinets Etc. 50 MM Main Door, Suitcases, Wooden Cupboards, Trunks, Carry Bag, cabinets, Etc. 60 MM Main Door, Grill Gates, Trunks, Shutters Of Godowns, Shop Etc. 70MM Main Door, Grill Gates, Trunks, Shutters Of Godowns, Shop Etc.
  14. 14. PRODUCTION CAPACITY Production Capacity (Per annum) = production rate per hour * Yield rate * * Hours per shift * No. of shift per day * No. of working days per month * No. of month per annum = 32 * 0.95 * 8 * 1* 25 * 12 = 72,960 locks per annum
  15. 15. 7. QUALITY CONTROL AND STANDARDS Locks are to be manufactured as per IS 4230 :1967. Since the locks are directly related to the safety of household the manufacturer must ensure the following in addition to IS specification: All the components must be in accordance with the dimensional accuracy. Manufacturing defects in no case be allowed. The raw material must conform to the specifications. Strength of cylinder and shackle must be ensured and it should not lead to failure/break on jerks. The components, particularly keys should be non interchangeable. Smooth function of the lock must be ensured.
  16. 16. 8. LOCATION STUDY
  17. 17. AVAILABILITY OF LAND Rented 1200 sq. feet land is available in the industrial region of Aurangabad. APPROACH TO SITE Good network of Rail and Road transport. Near the railway station. TRANSPORTATION Rented vehicles for transportation and supply are easily available near the working site. WATER Personal Bore water of land Owner is available for drinking water and daily needs. Municipal Corporation taps are also available. POWER Electricity is easily available with 24 hrs. OTHER FACILITIES The amenities like Post office, Banks, Police station, Petrol Pumps, Canteen, Bus services etc. are available in this area.
  18. 18. 9. IMPLEMENTATION SCHEDULE SR NO. ACTIVITY ESTIATED PERIOD 1 Preparation of project report 0 1 Month 2 Registration & Other formalities 0 1 Month 3 Sanction of loan by financial institution 1 5 Month 4 Placement of Order for Plant & Machinery 5 7 Month 5 Power & Water Connection 7 8 Month 6 Installation of Plant & Machinery 8 9 Month 7 Procurement of Raw material & Trial Run 9 10 Month 8 Commercial Production 10th Month onwards
  19. 19. 10. FINANCIAL STUDY
  20. 20. SR No. Description Qty. Amount (in Rs.) 1 Vertical machine center machine 1 No. 31,00,000/- 2 Hydraulic Automatic wire rod straightening and cutting machine 1 No. 1,50,000/- 3 Pin cylinder drilling machine 1 No. 1,00,000/- 4 Key indentation machine - 2,00,000/- 5 Bench drilling machine - 20,000/- 6 Weighing Machine - 20,000/- 7 Pedestal Grinder 20,000/- 8 Material Handling equipment's - 20,000/- 9 Testing equipment's - 30,000/- 10 Pollution Control Equipment (Exhaust) 1 No. 20,000/- TOTAL : 37,05,000 A. Fixed capital : I. Machinery & Equipment
  21. 21. II. Pre-Operative Expenses : Rs 70,000/ III. Electrical and Mechanical installation @ 10% of Plant and Machinary cost : Rs 3,70,500/ IV. Office/Lab. Furniture & Equipments : Rs 1,00,000/- Total Fixed Capital = I+II+III+IV= 42,45,500/-
  22. 22. B. WORKING CAPITAL (PER MONTH): SR NO. DESIGANATION NO. SALARY TOTAL (RS.) 1 Manager 1 22000 22000 2 Engineer-cum-supervisor 2 18000 36000 3 Accountant 1 10000 10000 4 Clerk-cum-Typist 1 8000 8000 5 Skilled Worker 3 10000 30000 6 Semi-skilled worker 4 8000 32000 7 Unskilled worker 3 6000 18000 8 Peon-cum-Watchmen 2 5000 10000 Total : 1,66,000 Add Perquisites @ 15% of salary : 1,90,900 I. Salary & Wages :
  23. 23. II. Raw Materials : SR NO. RAW/INPUT MATERIAL QTY. RATE AMOUNT In RS. 1 U shape rod 380 kg 250 Rs/kg 95000 2 Round shape rod 200 kg 220 Rs/kg 44000 3 Shackle 12000 8 Rs/shackle 96000 4 Bolt 12000 5 Rs/bolt 60000 5 Pin 350 kg 120Rs/kg 42000 TOTAL : 3,37,000
  24. 24. SR NO. UTILITIES AMOUNT (Rs) 1 Power (5000 KWH @ Rs. 8.00 per KWH) 40,000/- 2 Water (200 K. ltrs. @ Rs. 20/- per K. ltrs) 4000/- 3 Fuel (200 ltrs. @ RS. 70/- per k.ltrs) 14000/- TOTAL: 58,000/- III. Utilities : SR NO. Description Amount (Rs) 1 Rent 1,00,000/- 2 Telephone 15,000/- 3 Consumable Stores 5,000/- 4 Transport charges 25,000/- 5 Advertisement and publicity 15,000/- 6 Postage and stationery 7,000/- 8 Repairs and maintenance 22,000/- TOTAL: 1,89,000/- IV. Other Contingent Expenses :
  25. 25. Total Working Capital, i.e. Recurring Expenditure (For 1 Month) = 7,74,900/- Total Working Capital, i.e. Recurring Expenditure (For 3 Month) = 23,24,700/- SR NO. Description Amount (Rs) 1. Personnel 1,90,900/- 2. Raw Materials 3,37,000/- 3. Utilities 58,000/- 4. Other Contingent Expenses 1,89,000/- Total: 7,74,900/- Working Capital / Total Recurring Expenditure
  26. 26. TOTAL CAPITAL INVESTMENT SR NO. Description Amount (Rs) I. Fixed Capital 42,45,000/- II. Working Capital for 3 months 23,24,700/- Total: 65,70,200/- Total Capital Investment (Fixed + Working) = 65,70,200/-
  27. 27. Bank Name- SBI Bank Principal amount Rs. 53,00,000 /- Rate of interest 16 % p.a. 11. SOURCE OF FINANCE
  28. 28. 1. Corporate Tax in India : = 30% Total Income = 30% of Gross Profit = 0.30 * 50,99,468 = 15,29,840/- INR 2. DDT( Director Dividend Tax) = 15% (Gross Profit/Anum Corporate Tax) = 15% (50,99,468 15,29840) = 15% (35,69,628)/- = 5,35,444/- Total Tax payable = 15,29,840 + 5,35,444 = 20,65,284/- TAXATION
  29. 29. SR NO. Description Amount (Rs) 1 Total recurring expenditure 92,98,800 2 Depreciation on machinery & equipment @ 10% 3,70,500 3 Depreciation on office equipment & furniture @ 20% 20,000 4 Interest on total capital investment @ 16% 10,51,232 TOTAL : 1,07,40,532 A. Cost of production per annum : 12. Financial Analysis
  30. 30. C. Gross Profit (Per annum) : Gross Profit (Per annum) = B. Turnover : Quantity(Numbers) Price /unit Total (Rs) 72,000 220/- 1,58,40,000/- Total turn over - (Per annum) Total cost of production (Per annum) Gross Profit (Per annum) = 3,33,45,000 1,07,40,532 = 50,99,468/-
  31. 31. D. Net Profit: Net profit = Gross profit Tax payable = 50,99,468 20,65,284 = 30,34,184/-
  32. 32. PROFIT RATIO ON SALES (Per Annum): RATE OF RETURN (Per Annum): Profit/annum X 100 Turnover/Annum 30,34,184X 100 1,58,40,000 19.15 % Net Profit/annum X 100 Total Capital Investment 30,34,184 X 100 65,70,200 46.18 %
  33. 33. BREAK EVEN POINT (B.E.P) FIXED COST : SR NO. Description AMOUNT ( RS.) 1 Depreciation on machines and equipment tools, fixtures and office equipment's 14,82,000 2 Rent (Annual) 12,00,000 3 Interest on total investment 10,51,232 4 Insurance 10,000 5 40 % of Salary & Wages 76,360 6 40 % of other contingent expenses (excluding rent & insurance) 75,600 TOTAL : 38,95,192
  34. 34. Production cost per annum: Rs. 1,07,40,532 Turnover : Rs. 1,58,40,000 Quantity produce per annum: 72000 Fixed cost: Rs. 38,95,192 Fixed cost+ production cost per unit*x=sales cost per unit* x BEP : Volume(x) : 18994 locks Pay back period : 85 days Sales : Rs. 41,78,680 (sales cost per unit*x) BREAK EVEN POINT (B.E.P)
  35. 35. 13. MACHINERY & EQUIPMENT SUPPLIERS Sahil Technocrats: Plot No 382,Hingne-khurd,Sinhgad Rd, Pune, Maharashtra India. Sree Murugan Kerala Stores: Hadapsar, Pune, Maharashtra India. Jay Chamunda Maa Enterprises: Unit No. 009,Tirupati Udyog, I.b. Patel Road, Opp. H.p. Petrol Pump, Goregao (east), Mumbai, Maharashtra India.
  36. 36. Salicon: 396 Sicof 69 M.i.d.c. Satpur., Nashik, Maharashtra - 422007, India. Ganesh World Machinery: B.S.-1, Jivdani Industrial Estate, K.N. Dhumalnagar, Valiv, Vasai East, Mumbai, Maharashtra - 402201, India
  37. 37. THANK YOU