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PROJECT PROFILE

NAME OF PRODUCT: FABRICATION OF STEEL

ALMIRAH, RACKS AND

ALMIRAH PARTS

SPECIFICATION: AS PER CUSTOMER’S SPECN.

PRODUCTION CAPACITY: STEEL ALMIRAH: 750 NOS.

(PER ANNUM) LOCKER PLATE: 12000 PCS.

MONOGRAM: 12000 PCS.

LOCKER PULLER: 12000 PCS.

PROJECT COST: Rs.15,00,000/-

TURNOVER: Rs.35,69,000/-

PREPARED BY: DEBADATTA RATHA

B.Tech

Mechanical Engineering

INTRODUCTION:

Fabrication work of different items is gaining importance with

industrialisation and human civilization. Various steel fabricated items such

as almirahs, racks, book-cases, parts of almirahs such as monogram, locker

plates, locker pullers handles its base, etc. are having very good prospects at

this moment and being used in daily life of middle class and upper middle

class people. It is also used in Govt. offices, private companies, etc. Steel

furniture is being preferred over wood furniture due to its long durability,

lightness in weight, portability, safety, economy in space utilisation,

cleanliness etc.

Proposed unit is being set up by Mr.Debadatta Ratha who is having B.Tech

in mechanical Engineering qualification. He is young and energetic. Besides

good qualification he is having good experience in such fabrication type in

Tangi,dist.Khurda.He had been successfully engaged in promotion of one

such unit at Khurda with name style of M/s.Maruti Technocrats Fabricators

since last 3 years and the unit is being run successfully and meeting the

demand of local people. This experience will definitely be helpful to him to

promote new unit with additional items of manufacture. Depending on his

market survey for different fabricated items the proposed unit will

manufacture almirah and other fabricated items as per local demand. Besides

fabricated items, it is proposed to manufacture some almirah parts such as

Locker plate, Monogram, locker puller, etc. for which there is very good

demand as there are many fabrication units for almirah etc. Presently these

units procure these parts from outside market. Proposed unit will be able to

meet their requirements and can be managed successfully by the promoter of

the unit.

MARKET POTENTIAL:

Demand for fabricated items such as almirah, racks, etc. is increasing

with increasing of population and urbanisation. Almirah is almost used in

every house, office, Govt. and private organizations etc. it has vast potential

of marketing within the state and outside the state. There are many local

fabricators of almirah in the state particularly in Rourkela, Cuttack,

Bhubaneswar, Sambalpur, etc. Still there is good scope for setting new unit

in such location like Tangi Khurda where hardly few such unit exist.

Demand for almirah parts is almost every corner of the state for the

manufacture of steel almirah. Presently the fabricators are procuring parts

from Calcutta and other neighbouring states. The proposed unit will be in

position to meet the growing demand of these items in the state.

BASIS OF PRESUMPTION:

1. The scheme is based on single shift basis and 300 working days per

annum.

2. The prices of machinery etc. are taken as those which are prevailing

at the time of preparing scheme which may differ time to time and

location to location.

3. Full capacity utilization of the unit may start after four years.

4. Interest rate @ 18% P.A. on total investment taken into consideration.

5. Pay back period - 3 years.

6. 25% of total investment will be contributed by the entrepreneur itself

as margin money.

7. Land and building initially taken on rent basis.

IMPLEMENTATION SCHEDULE:

Preparation of project report 3 months

Selection of site ½ month

Arrangement of finance 4 months

Registration and clearance from various authorities ½ month

Procurement of machinery 2 ½ months

Recruitment of staff ½ month

TOTAL DURATION = 11 months

TECHNICAL ASPECTS:

1) Process of fabrication of steel almirah etc. mainly involved first

pressing sheet, cutting, bending, welding, joining of parts, finishing,

painting etc. First desired sheets are pressed then desired size and

gauge sheet are cut with the help of cutting machinery. Then sheets

are bent with the help of bending machine and welded. Parts are fitted

and finally finishing and painting work done. Other parts are made

with the help of tool and jogs, After proper checking finished products

are made ready for dispatch.

2) Quality control: As per customers satisfaction.

3) Production capacity (Per Annum):

Sl.no. Item Quantity Cost per piece

(in Rs)

Value

1. Almirah 500 pcs.

4200 21,00,000/-

2. Lock plate 12000 pcs.

32 3,84,000/-

3. Monogram 12,000 pcs. 2 24,000/-

4. Locker puller 12,000 pcs. 1.25 15,000/-

Total 25,19,000/-

4) Approx. Motive Power: 1500 KWH.

5) Pollution control:

There is not much pollution in such type of unit. However, proper

arrangement of sock of raw material and finished products are

required to be maintained, wastage should be disposed properly,

workmen specially welder, cutter, etc. should be provided protective

mouthpiece, hand gloves, etc.

6) Energy conservation:

There is not much scope of energy conservation in such unit.

However, unnecessary use of light, fan, exhaust fan, etc. should be

avoided which may result in some saving of energy.

FINANCIAL ASPECTS:

1. Land and Building: Own

2. Plant and Machinery:

Sl.no. Description No. Rate Value (in Rs)

1. Sheet bending machine 1 1,20,000 1,20,000lakh

2. Stand drilling machine 1 7,800 7,500

3. Sheet rewinding machine 1 10,400 10,400

4. Arc welding machine 1 20,500 20,500

5. Air compressor 1 12,500 12,500

6. Sanding machine 1 10,900 10,900

7. Hand drill 1 7,400 7,400

8. Fly press 1 16,500 16,500

9. Compressor pipe with Pilot

spray gun

1 4,400 4,400

10. Pipe bending machine 1 9,500 9,500

11. Sheet shearing machine 1 6,500 6,500

12. Stand grinder 1 8,200 8,200

13. Power press 50 ton cap. Steel

body (type with 5 HP motor)

1 1,28,500 1,28,500

14. Spot welding machine 1 12,000 12,000

15. HSS 3,000 3,000

TOTAL 3,77,800

TOOLS AND JIGS:

16.. Single station press tool for

main body (for embossing,

lancing and piercing)

1 1,00,000 85,825

17. Blanking tool for CAM (Die

and punch)

1 40,000 40,000

18. Bending/forming tools for

CAM

1 20,000 20,000

19. Piercing tool to CAM (Die

and punch)

1 18,000 18,000

20. Blanking tool for Clamp (die

and punch)

1 18000 18000

21. Piercing tool for clamp (die

and punch)

1 12000 12,000

22. Fencing tools for clamps 1 12,000 12,000

23. Piercing tools for supper plate 1 12000 12,000

24. Two station programme tool

for Monogram block (CRCA)

1 26,000 26,000

25. Station programme tool for

monogram top (almirah)

1 20,000 26,000

26. Two station programme tool

for puller (CRCA)

1 26,000 26,000

TOTAL 2,95,825

Office furniture 20,000

Electrification and installation 68,800

GRAND TOTAL 7,76,600/-

3. Pre-Operative expenses:

1. Preparation of project profile 5000

2. Consultancy charges 1000

3. Travel and transport 2000

4. Legal fee etc. 2000

Total = 10,000

Total Fixed Capital cost: (TFC)

= 7,76,600 + 10,000 = 7,86,600/-

Working capital:

1. Personnel (Per Month):

Sl.no

.

Designation No. Salary Total salary

1. Manager 1 3000 3000

2. Skilled workers 3 3000 9000

3. Unskilled workers 4 1500 6000

4. Supervisor 1 2500 2500

5. Peon 2 1000 2000

22,500

Perquisites @ 15% 3225

25,725/-

2. Raw Material (Per Month):

1) M.S. sheets, pipes, angles in different gauge and size 1,50,000

1) C.R.Sheet, bush 35,000

2) Paints, primer, turpentine putty 15,000

3) Misc. Items 5,000

TOTAL = 2,05,000

3. Utilities Per Month:

Electricity 4000

Water 1000

4. Other contingential expenses (Per Month):

1. Stationery and postage 1000

2. Telephone 300

3. Transportation 3000

4. Repair and maintenance 1500

6. Insurance 1000

TOTAL = 6,800

5. Working capital (Per month):

Salary 25,725

Raw material 2,05,000

Utilities 5,000

Other expenses 6,800

TOTAL = 2,42,525

Working capital for 3 months:

2,42,525 x 3 = 7,27,575/-

Total capital Investment:

1. Fixed capital (FC) 7,72,425

2. Working capital (WC) 7,27,575

15,00,000

Total Capital Investment = Rs 15,00,000/-

Cost of production (Per annum):

1. Total recurring expenses 29,10,300

2. Depreciation on plant and machinery @ 10% 68,800

3. Depreciation on office furniture 4,000

4. Interest on total cap. Invt. @ 12% 1,80,000

TOTAL = 31,63,100/-

5. Turnover (Per Annum):

Steel almirah 750 pcs. @ 4200/- 31,50,000

Lock plate 12000 pcs @ 32/- 3,80,000

Monogram 12,000 pcs @ 1.25 24,000

Locker puller 12,000 pcs @ 1.25 15,000

TOTAL = 35,69,000/-

PROFIT:

Total sales – cost of production:

35,69,000 - 31,63,100 = 4,05,900/-

say 4,06,000/-

NET PROFIT RATIO:

RATE OF RETURN:

Break Even Analysis:

1. Fixed cost:

i) Depreciation on plant and machinery @ 10% 68,800

ii) Depreciation on furniture @ 20% 4,000

iii) 40% of annual salary 1,08,000

iv) 40% of other annual exp. 32,640

v) Interest on total invt. @ 12% 1,80,000

3,93,440

Break Even Point

BEP =

ADDRESSES OF MACHINERY SUPPLIERS:

1. M/s.Machine Tools Traders, 57A, Thambu Chetty Street, Madras-

600001.

2. M/s.Armstrong Smith Ltd., 45, Armenian Street, Madras-600001.

3. M/s.Raja Machine Tools, 91, Thambu Chetty St.,Madras-600001.

4. M/s.Shiv Machine Tools, 67, Armenian Street, Madras-600001.

5. M/s.Vishnu Chakkara Machine Tools, 15, Francis Joseph St., Madras-

600001.

6. M/s.Industrial Supply Syndicate, 121 Cuttack Road, Bhubaneswar-

751006.

7. M/s.Central Tool Room & Training Centre, B-36, Chandaka Ind.Area,

P.O.Patia, Bhubaneswar.

8. M/s.The Eastern Engg. & Trading Co.(P)Ltd., 26, Elliot Road,

Calcutta.