Project Profile - AUTOMOBILE SILENCER

A. INTRODUCTION & USES:

         Automobile silencer, as its name suggests, is a device used to reduce the noise produced by the engine. Silenceris mainly used in automobile vehicle to reduce the noise produced by the exhaust gases of their engine. It is also used in many other engines, generators etc. The design, size, shape and construction vary according to the type and size of the engine.

B. MARKET POTENTIAL:

         The automobile industry all over the world is growing at a very high rate and various vehicles are seen on the road. The production of silencers is thus has a very good market potential as it can be sold as original equipment and also as replacement. With the growth of economy and increase in road transport, the demand of silencers is growing Particularly during the present time when the roads are flooded with different types of old and new models of vehicles.
         Since the demand of the automobiles vehicles – scooters, motor cycles, auto rickshaws etc. is increasing day by day in the country, so there is large scope of ancillarisation of auto silencer. It has been revealed from the market survey that the demand of the auto silencer will be increased by 5% to 7% in near future.

C. BASIS AND PRESUMPTION:

         (i) The unit is expected to work at 75% efficiency on 8 hrs. Single shift basis for full capacity utilizations.
         (ii) The full capacity utilisation will be achieved in three years. 70% in the first year followed by 85% in the next year and the 100% in subsequent years.
         (iii) Labour and wages mentioned as per prescribed minimum wages and the proprietor is considered as a manager.
         (iv) Interest considered @ 18% in the project provide for recurring and non-recurring investment.
         (v) The cost of land, construction charges, cost of machinery and equipment, raw materials and consumables other expenses etc. initiated in the profile are based on the prices prevailing at the time of project preparation. Therefore, they are subject to necessary changes from time to time based on local conditions.

D. IMPLEMENTATION SCHEDULE:

E. TECHNICAL ASPECTS:

1. MANUFACTURING PROCESS:

         The process for manufacturing of automobile silencer is not involving any special technology. It is a simple press working process. The CRCA sheets are cut into the required size and shape. These sheets are then given the desired shape with the help of presses and edge folding machines and bending rollers. The mufflers are also made out of CRCA with the help of presses. These mufflers are then gas welded in one half of the silencer then the other half of the silencer and MS tunings according to the requirement are gas welded. The silencers are then cleaned and packed for dispatch.

2. QUALITY STANDARDS AND SPECIFICATIONS:

         As such there is no standard specification is suggested by the B.I.S. However, good workmanship and best quality of raw material must be used to satisfy the consumers.

3. PRODUCTION TARGET (PER ANNUM):

         15000 Nos. Of silencers

4. POLLUTION CONTROL:

         The assembled product will be spray-painted or Ni plated for which necessary arrangement and exhaust fans will be provided in the painting and plating areas.

5. ENERGY CONSERVATION NEEDS:

         General awareness is to be created for economic use of electricity at all points. Capacitors may be used at suitable points for energy conservation. All machinery and equipment should be properly lubricated and maintained so that they consume less amount of power in use.

F FINANCIAL ASPECT:

         1. Land & Building:

         Land 250 sq.mtrs. @ Rs.40/- per sq.mtr.--          10,000/-
         on rent per month

         2. Fixed Capital on Plant & Machinery:

        3. Preoperative Expenses-----------------------------------------------------------------------------------25,000/-

         Grand Total -------------------------------------------------------------------------------------------------7,84,000/-

4. WORKING CAPITAL (PERMONTH):

         1. Staff & Labour Expenses:

         (a) Administrative:

         II. Raw Materials (per month):

         III. Utilities (per month):

        1.         Electricity (KWH)       7600/-
        2.         Water L.S.                  400/-
        Total -------------               8,000/-

         IV. Other Contingent expenses (P.M.):

         V. Total recurring expenditure (per month):

         VI. Total working capital ( 3 months basis)

5. Total capital investment:

6. Financial Analysis:

         1. Cost of Production:

         2. Turn over (per year):

         Since there can be a variety of silencers to be produced according to the type and size of the engine/ vehicle, it is not possible to take any size as a standard. Thus it is categorized as small and big silencer.

3. Net Profit (per year) = Rs. 33,75,000 - 24,77,162

                                      = Rs. 8,97,838/-

4. Profit Ratio:= Net profit x 100 / Total turn over

                        = 897838 x 100 / 3375000

                        = 26.60 %

5. Rate of Return: = Net profit x 100 / Total investment

                               = 897838 x 100 / 1319680

                              = 68.03 %

6. Break Even Point:

        a) Fixed cost (per year):

BEP = FC x 100/ FC + Profit

        = 804230 x 100 / 804230 + 897838

        = 47.25%

ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS:

        1.         M/s. Tools Today (India), D-52, Phase-V, Focal Point, Ludhiana-141101
        2.         M/s. Batliboi & Co., Parliament Street, New Delhi-110001
        3.         M/s. Ashoka Machine Tools Corpn., A-15, Mayapuri Indl. Area, New Delhi.
        4.         M/s. Amteep Machine Tools (P) Ltd., 17/7, Mathura Road, Faridabad.

NAMES AND ADDRESSES OF RAW MATERIALS SUPPLIERS:

        Raw material can be purchased from the local suppliers available in the market.