Project Profile - BICYCLE MUDGUARD

A- INTRODUCTION:

         Mudguards are made of steel sheets and are used to guard the upper portion of the front and rear wheels of the cycle. It is also used to avoid splashing of water and dust on the cyclist while riding on the cycle.

B. MARKET:

         The major demand for Bicycle mudguard is for the bicycle manufacturers and assemblers. As regards replacement market, its demand is rather poor. However, the cycle manufacturing units who are concentrated in Haryana, Punjab etc. can be contacted for the same.

C. BASISI AND PRESUMPTIONS:

         i)          This project profile has been prepared on single shift basis i.e. 8 hours per days at 75% efficiency.

         ii)          Arrangement for labour wages has been made as per the prevailing market rates which may vary from place to place and the minimum wages fixed by the concerned authorities from time to time.

         iii)          A period of 3 years after commencing the commercial production has been considered for achieving full/ envisaged capacity.

         iv)          Interest rate on fixed and working capital has been calculated at the rate of 18% per annum.

D. IMPLEMENTATION SCHEDULE:

         The following activities are required to be completed during the implementation schedule:

         It is beneficial to beneficial to obtain permanent registration certificate from the concerned DIC.

E. PRODUCTION TARGET:

         It is proposed to manufacture 2.5 lac bicycle mudguard per annum.

F. TECHNICAL ASPECTS:

1.The manufacturing process:

         M.S. sheets are cut into strips of required sizes on the rotary shearing machine. The strips are cut in required length by hand scissors. These strips are rolled on automatic mudguards forming machine to the required shape and size. The end of these rolled strips are folded. Holes and slots are punched and pierced on hand press. Other fittings like clips are produced on power press. Rear and front mudguard stays are manufactured by cutting wire to the required length on wire straightening and cutting machine and then threading is done. Various fittings and mudguards are then assembled. They are painted by stove enamel paint by dipping and later on baked. Completed mudguards are packed and dispatched.

2. Quality Standard:

         The mudguards are checked ass per Indian Standard Specification No.IS: 6218-1971.

3. Energy Conservation Needs:

         Bulbs/ tubes/ motor driven machines should be switched off when not in use.

4. Motive Power Required: 18 KW

G. FINANCIAL ASPECTS:

i) Fixed Capital:

         Land and Building (Rented) P.M. Rs. --------------------------7,500/-
         Total Covered area 300 sq. mtrs. @ Rs.25/- per
         Sq. mtr.

ii) Machinery and Equipments:

ii) Working Capital (per month):

         Staff & Labour:

iii) Raw material (per month)

iv) Utilities per month:

         (A) Approximate 20KW motive power will required.. Rs. 15,000/-

         (B) Water.. .                                                               Rs. 700/-

         Total                                                                        Rs. 15.700/-

v) Other Expenses (per month)

vi) Total recurring Expenditure (per month):

         (i) + (ii) + (iii) + (iv) = Rs. 3,49,270/-

Total Capital Investment:

         i) Fixed Capital                         4.50,000/-
         ii) Working capital ( 3 months) 10,47,810/-
         Total                                 Rs. 14,97,810/-

Financial Analysis:

1. Cost of Production (per year)

        Total Recurring cost (per year) -------------------------41,91,240/-
        Depreciation on machinery and equipment @ 10% -----36,000/-
        Depreciation on tools @ 25% --------------------------5,000/-
        Depreciation on office equipment @ 20% --------------4,000/-
        Interest on total investment @ 18% --------------------2,69,605/-
        Total .----------------------------------------------------- Rs 45,05,845/-

Turn over (per year)

Net profit (per year) : = Turn over - Cost of production

                                 = 5000000 - 4505845

                                = Rs. 4,94,155/-

Net profit Ratio = Net profit x 100 / Turn Over

                        = 494155 x 100 / 5000000

                        = 9.88 %

Rate of Return = Net profit x 100 / Total investment

                      = Net profit x 100 / Turn over

                     = 494155 x 100 / 1497810

                     = 32.99 %

3. Break Even Analysis:

         Depreciation ( all types ) ------------45,000/-
         Rent --------------------------------90,000/-
         Interest on investment --------------1,69,605/-
         40% of salary ----------------------1,75,536/-
         40% of other expenses -------------79,200/-
         Total ------------------------------------27,20,325/-

B.E.P % = FCx100 / FC + P

               = 659341 x 100 / 659341 + 494155

               = 659341 x 100 / 1153496

               = 57.16 %

Names & Addresses of machinery and equipments suppliers:

        1.         M/s. Khullar Cycle Industries, Indl. Area ‘A’, Ludhiana (Pb.)
        2.         M/s. Panjab Cycle Parts Manufacturing Co.,
                    G.T.Road, Millar Ganj, Ludhiana.
        3.         M/s. Devkinandan & Co., Indl. Estate, Ludhiana.
        4.         M/s. Batliboi & Co. (Pvt.) Ltd., 190 A, Forbes Street, Fort Mumbai.

Address of Raw material suppliers:

                   May be procured from local market.