project profile on electronic gas lighter - MSME

MSME-DI KANPUR
PROJECT PROFILE
ON
ELECTRONIC GAS LIGHTER
**************************
PART-I
NAME OF THE PRODUCT :
Electronic Gas Lighter.
PRODUCT CODE
:
NIC 36491100X.
Category
:
Electrical.
QUALITY & STANDARD
:
The following BIS Standards may be referred –
IS:11514:1985 – Piezo electric ceramic cartridge for
Impact type gas lighters.
IS: 11519-1985 – Piezo electric ceramic cartridge for
squeeze type of gas lighter.
IS:11013-1984 – Piezo electric ceramic elements
(impact type & squeeze type)
PRODUCTION CAPACITY :
The production capacity of the unit at 75% capacity
utilisation.
Quantity
: 18000 Nos.
Value
: Rs.18,90,000/-
MONTH & YEAR OF
PREPARATION
:
December, 2013.
PREPARED BY
:
MSME - Development Institute,
Ministry of Micro, Small & Medium Enterprises,
Government of India
107, Industrial Estate, Kalpi Road,
Kanpur-208012.
Tele. 2295070, 2295071 & 2295073 (EPBAX)
Tele. No. 2295072 (SENET & TRC)
Tele/Fax No.: 0512- 2240143
email: [email protected]
Website: msmedikanpur.gov.in
MSME-DI, KANPUR
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PROJECT PROFILE
ON
ELECTRONIC GAS LIGHTER
***************************
PART-II
A) INTRODUCTION
The electronic gas lighter uses a piezo-electric crystal. This crystal has a
property to generate voltage when it is mechanically deformed. It generates high
voltage across a spark gap which when in proximity to a gas would ignite it.
Gas lighters are being used by cooking gas users. It is durable due to its
performance and economical as compared to the mechanical and electrical lighters. It
does not require battery for its operation. It is safer, economical, reliable and quick in
action. It requires virtually no maintenance.
B) MARKET POTENTIAL
The demand of any type of gas lighter is directly related to the release of
domestic gas connections by various gas companies in the country. However, users go
in for various types of gas lighting devices i.e. matches, electrical or electronic gas
lighter. The preference to use electronic gas lighters is quite high because of inherent
advantages stated above. Even existing gas users have been increasingly switching
over to electronic gas lighters. At present, there is no small scale unit engaged in the
manufacture of electronic gas lighter in the State of Uttar Pradesh. The cost of gas
lighter is very well within the reach of users and therefore demand is increasing day by
day.
MSME-DI, KANPUR
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C) BASIS & PRESUMPTIONS
1. The basis for calculation of production capacity is on single shift basis, working of
25 days per month on 75 % efficiency. The required for achieving envisaged
capacity utilization is assumed as one year.
2. BEP for the scheme has been calculated on full capacity utilization.
3. Rate of interest has been taken as 15% on an average. This, however, is likely to
vary depending upon the financial outlay of the location of the project.
4. Labour wages have been taken on the basis of minimum applicable. There are
likely to change depending upon the location of the project.
5. Margin money requirement differs from project or project and type of
entrepreneurs such as women, SC/ST, physically handicapped etc. and the
minimum margin money usual asked by the financial institutions and banks are
15%. Margin money up to 25% in some cases is also asked. The entrepreneurs
may check the margin money requirement from financial institutions for the
project.
6. Term of loan differs from one financial institution to another and in general
minimum gestation period is normally 6 months and it could be 2 years.
Maximum period for repayment of loan is 7 years including gestation period. The
entrepreneurs from the concerned financial institutions may find the exact terms
and conditions.
7. The cost of machinery and equipments as indicated in the scheme are
approximate those ruling at the time of preparation of the scheme. The
entrepreneur may check the exact price for specific make and model of the
machine selected.
8. Non-refundable deposits, cost of preparation of project report etc. may be
considered under preoperative expenses.
9. The provision made in other respects viz; raw materials, utilities, overheads etc.
are drawn on the basis of standard variation and output. The cost indicated
against each are approximate and based on local market condition and
observations. The entrepreneur may find out the exact cost from the concerned
sources.
10. The operative period of this project is estimated to be about 10 years considering
technology obsolesce
MSME-DI, KANPUR
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D) IMPLEMENTATION SCHEDULE:
The major activities in the implementation of the project have been listed and the
average time for implementation of the project is estimated at 12 months:
Period in month
1. Preparation of project report
:
1
2. Registration and other formalities
:
1
3. Sanction of loan
:
3
a) Placement of order
:
1
b) Procurement
:
2
c) Power connection/electrification
:
2
d) Installation / Erection of machinery / Test
:
2
5. Procurement of raw material
:
2
6. Recruitment of Technical personnel etc.
:
2
7. Trial production
:
11
8. Commercial production
:
12
4. Plant & Machinery
Equipment
Note:
1. Many of the above activities shall be initiated concurrently.
2. Procurement of raw materials commences from the 8th month onwards.
3. When imported plant & machinery are required, the implementation of project
may vary from 12 months to 15 months.
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E) TECHNICAL ASPECTS:
(i)
Process of Manufacture:
Sheet metal work & M.S. Tubing/Cases can be done by job work from outside.
Moulded components are made on injection moulding machine. Assembly on Piezo
electric ceramic cartridge alongwith sheet metal components/parts and moulded
parts are carried out and fitted in M.S. tubing/cases. The complete assembled unit is
tested for life cycle ignition before it is sent for packing and dispatched.
(ii) Quality Control and Standards
There is no standard BIS Specification for this product However, the following
specifications may be referred for quality:
IS:11514 – 1985 Piezo electric ceramic cartridge for impact type gas lighter
IS:11519 – 1985 Piezo electric ceramic cartridge for squeeze type of gas lighter
IS:11013 – 1984 Piezo electgric ceramic elements (impact type & squeeze type)
It is envisaged that the gas lighter will be able to perform the following
operations:
1. To generate voltage above 10 KV
2. Period of spark generation should not be less than 10 milli second
3. The gas lighters must be able to operate more than 30,000 times.
(iii) Production Capacity:
Item
Quantity
Value
Electronic Gas Lighters
18,000 Nos.
Rs. 18,90,000/-
(iv) Motive Power:
3 Phase 5 KVA
(v) Pollution Control:
The Govt. accords utmost importance to control environment pollution. The small
scale entrepreneurs should have an environmental friendly attitude and adopt
pollution control measures by process modification and technology substitution.
MSME-DI, KANPUR
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India having acceded to the Montreal Protocol in Sept. 1992, the production and
use of Ozone Depleting Substances (ODS) like Chlorofluore Carbon (CFCs),
Carbon Tetrachloride, Halons and Methyl Chloroform etc. need to be phased out
immediately with alternative chemicals / solvents. A notification for detailed Rules
to regulate ODS phase out under the Environment Protection Act, 1986 have been
put in place with effect from 19th July, 2000.
(vi) Energy Conservation:
With the growing energy needs and shortage coupled with rising energy cost, a
greater thrust in energy efficiency in industrial sector has been given by the Govt.
of India since 1980s. The Energy Conservation Act 2001 has been enacted on
18th August, 2001, which provides for efficient use of energy, its conservation &
capacity building of Bureau of Energy Efficiency created under the Act.
The following steps may help for conservation of electrical energy:
i) Adoption of energy conservation technologies, production aids and testing
facilities.
ii) Efficient management of process/manufacturing machineries and systems, QC
and testing equipment for yielding maximum Energy Conservation.
iii) Optimum use of electrical energy for heating during soldering process can be
obtained by using efficient temperature controlled soldering and de soldering
stations.
iv) Periodical maintenance of motor5s, compressors etc.
v) Use of power factor correction capacitors, proper selection and layout of
lighting system; timely switching on-off of the lights; use of compact fluorescent
lamps wherever possible etc.
MSME-DI, KANPUR
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F) FINANCIAL ASPECTS:
A)
Fixed Capital:
(i)
Land & Building:
Built up Area: 300 Sq. Ft. (Rented) per month
(ii)
5,000/-
Machinery & Equipment:
S.No
1.
2.
3.
4.
5.
6.
7.
a)
b)
c)
Description
Bench Drilling Machine (1/2”)
Bench Grinder
Fly Press
Injection Moulding Machine
Test Bench with jigs fitted (motorized)
Spot Welding Machine
Cost of dies/mould/tools & fixtures etc.
Installation & Electrification @ 10%
Office furniture & equipments
Pre-operative expenses
Total:
B)
Working Capital (Per Month):
(i)
Personnel:
Sl. No.
1.
2.
3.
4.
5.
Designation
Manager
Technical Supervisor
Clerk-cum-Typist
Skilled Workers
Unskilled Workers
Qty.
1
1
1
1
1
1
No.
1
1
1
2
2
Perquisites 15%
Total:
(ii)
Rate
5,000/5,000/5,000/6,000/5,000/10,000/LS
Salary
15,000/
10,000/8,000/8,000/4,000/Total:
Value
5,000/5,000/5,000/6,000/5,000/10,000/15,000/4,000/20,000/5,000/80,000/-
Total (Rs.)
15,000/10,000/8,000/16,000/8,000/57,000/8,300/65,300/-
Raw Materials including Packaging Requirements:
1.
Piezo electric ceramic cartridge
2.
Copper contact
3.
M. S. Tubing
4.
Spring
5.
Plastic powder/granules
6.
M. S. Lighter body
7.
Hardware
8.
Consumables & Packing
The average cost of raw material per set works out to be Rs. 40/- pet
cost of raw material per month for 1500 Nos. Gas Lighters : Rs. 60,000/-
1500 Nos.
1500 Nos.
1500 Nos.
1500 Nos.
10 Kg
1500 Nos.
1500 Sets
1500 Sets
set. Total
MSME-DI, KANPUR
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(iii) Utilities (P.M.)
1.
2.
Electricity
Water
Total
2,000/200/2,200/-
(iv) Other contingent Expenses (P.M.):
1
Advertisement
1,000/-
2
Consumable Stores
500/-
3
Insurance
500/-
4
Postage & Stationery
500/-
5
Rent
5,000/-
6
Repair & Maintenance
1,000/-
7
Transport
1,000/-
8
Misc. expenses
500/Total:
10,000/-
Total Working Capital per month
Sl.
No.
1.
2.
3.
4.
Description
Personnel
Raw material
Utilities
Other contingent expenses
Total:
Amount (Rs.)
65,300/60,000/2,200/10,000/1,37,500/-
Working Capital for 3 months – 1,37,500 X 3 = 4,12,500/TOTAL CAPITAL INVESTMENT:
1.
2.
Fixed Capital
Working Capital for 3 months
Total:
80,000/4,12,500/4,92,500/-
MSME-DI, KANPUR
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G) FINANCIAL ANALYSIS:
i)
Cost of Production (Per Annum))
Sl. Particulars
No.
1. Recurring Expenditure
Value(Rs.)
16,50,000/-
2.
Depreciation on machinery and equipment @10% p.a.
3,600/-
3.
Depreciation on Office Furniture @ 20% p.a.
7,800/-
4.
Interest on Total Capital Investment @ 15%
73,875/Total: -
ii)
Turnover (Per Annum)
Sl. Item
No.
By sale of 18000 Electronic Gas Lighter @ Rs.105/1.
iii)
(-)
(-)
18,90,000/-
Cost of Production
17,35,275/-
=
1,54,725/-
PROFIT RATIO ON SALES (Per Month):
Profit/month X 100
Turnover/month
v)
Value (Rs.)
NET PROFIT (Per Month)
Turn Over
18,90,000/-
iv)
17,35,275/-
1,54,725/- X 100
18,90,000
=
8.18%
=
31.4%
RATE OF RETURN (Per Annum):
Net Profit/12X 100
Total Capital Investment
1,54,725/- X 12 X 100
4,92,500/-
MSME-DI, KANPUR
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BREAK EVEN POINT
Fixed Cost (Per Month):
1.
Depreciation
Rs.
11,400/-
2.
Rent
Rs.
60,000/-
3.
Insurance
Rs.
6,000/-
4.
Interest on Investment @ 15%
Rs.
73,875/-
5.
40% of Salary & Wages
Rs.
2,83,200/-
6.
40% of other expenditure excluding Insurance and Rent of
Rs.
36,000/-
Rs.
6,600/-
Total:- Rs.
4,77,075/-
utilities and other exp.
7.
25% of utilities
B.E.P.
Annual Fixed Cost X 100
4,77,075X12X100
Annual Fixed Cost + Profit
4,77,075 + 1,54,725
=
75%
Additional Information:
a) The project profile may be modified / tailored to suit the individual entrepreneurship
qualities/capacity, production programme a d also to suit the locational characteristics,
wherever applicable.
b) The Electronics Technology is undergoing rapid strides of change and there is need for
regular monitoring of the national and international technology scenario. The unit may,
therefore, keep abreast with the new technologies in order to keep them in pace with the
development for global competition.
c) Quality today is not only confined to the product or service alone. It also extends to the
process and environment in which they are generated. The ISO 9000 defines standards for
Quality Management Systems and ISO 14001 defines standards for Environmental
Management System for acceptability at international level. The unit may therefore adopt
these standards for global competition.
d) The margin money recommended is 25% of the working capital requirement at an average.
However, the percentage of margin of margin money may vary as per bank’s discretion.
MSME-DI, KANPUR
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Names & Address of Machinery & Equipment Suppliers:
1.
M/s Pathak Machine Tools Pvt. Ltd.,
115, & 116, G. T. Road, Salkia, Howrah-711106.
2.
M/s Hindustan Machine Tools Ltd.,
Lamp Division, HMT, P.O. Hyderabad-500054.
3.
M/s Machine Tools Impex,
75. G.C. Avenue, Kolkata-13.
4.
M/s Maneklal & Sons,
23. G.C. Avenue, Kolkata-13.
B-10, Phase-II, Mayapuri Indl. Area, New Delhi-64.
5.
M/s Shankar Coils Pvt. Ltd.,
30, Benttttinck St., 1st Floor, Kolkata.
Raw Material Suppliers:
1.
M/s Calico Chemical & Plastic Fibre Dvision,
Anik Chambers, Mumbai-74.
2.
M/s Central Electronics Ltd.,
Industrial Area, Sahibabad, Disttt. Ghaziabad.
3.
4.
- Plastic Materials
– Piezo Ceramic
M/s Brisk Electro Sales (P) Ltd.,
Lamington Road, Lamington Chamber, Mumbai.
– Piezo Ceramic
M/s Neeraj Trading Company,
3, Chandni Approach, KOlkata-72.
– Piezo Ceramic
*****
MSME-DI*KNP*PSB*2013-14*