PROJECT PROFILE
PEDAL ASSEMBLY BICYCLE

I PRODUCT & ITS USES

         The pedals in bicycle help to drive it. They are used in pairs. One pedal is fitted on the left crank while the other on the right side crank. The pedal assembly consists of the following main components: -

         1.          Pedal axle.
         2.          Pedal axle cone.
         3.          Ball races with balls
         4.          Pedal plates.
         5.          Dust Plates.
         6.         Rubbers.
         7.          Hub Tube.
         8.          Stretcher bar and
         9.          Nuts & washers.

II MARKET POTENTIAL

         Pedal assemblies are supplied as original part of bicycle to the bicycle manufacturers. It has very limited replacement market, however, its components are being replaced due to wear and tear. It is advisable to start such as industry as an ancillary unit to a bicycle manufacturer and simultaneously supply the market replacement parts/assemblies.

III PRODUCTION TARGET (PER ANNUM)

         It is envisaged to produce 72000 pairs of pedal assembly per annum. It is advisable to produce only pedal plates, dust plasts, ball races and hub tubes in the unit. Rest of the items may be procured from the other units and electroplating of hub tubes may be got done from an electroplating unit. This is to avoid utilization of many machines.

IV BASIS & PRESUMPTIONS

         The production target is based on 75% utilization of machine hours and working 300 days in a year on single shift basis.

V PRODUCTION DETAILS & PROCESS OF MANUFACTURE

         The pedal plates, ball races and dust plates are produced on power press with the help of suitable dies. The M.S. Tubes are cut in suitable size on collets lathe and sent for electroplating. The remaining components are procured from the market and assembly is done in the unit.

VI QUALITY CONTROL & STANDARDS

         The pedal assembly should be inspected as per procedure given in IS:628-1963. Pedal axle should be purchased after verifying that it conforms to the bend test for the item as specified in the ISS.

VII LAND & BUILDING

         Building of 300 sq. meters will be required on rent @ Rs. 5000/- per month.

VIII MACHINERY & EQUIPMENTS

SI.No.
DESCRIPTION OF MACHINERY
Nos.
Amount (Rs.)
1.
Inclinable power press 25 Ton Cap
1
50,000
2.
Collect Lathe Adda Type 20mm size with 1HP Electric Motor & Starter
1
25,000
3.
Bench drill 12 mm capacity
1
10,000
4.
Bench grinder with 200 mm wheel dia and ½ HP motor etc.
1
10,000
5.
Tools, dies & equipments
L.S.
25,000
6.
Office equipment, furniture etc.
L.S.
10,000
7.
Installation & Electrification etc.
L.S.
10,000
 
Total
 
1,40,000

IX RAW MATERIALS (PER MONTH)

1.
MS Tubes 20 SWG 16mm dia, 1080M length @ Rs. 6.50 per meter
7,020
2.
CR Strips 16 SWG 1 MT @ Rs. 35000 PT
35,000
3.
CRCA Strips 24 SWG, 0.25 MT @ Rs. 38000 PMT
9,500
Brought – out Components for 12000 pedals
a.
Pedal Axle @ Rs. 4/-
48,000
b.
Pedal Axle cone, washer and nut @ Rs. 1.50/
18,000
c.
Rubbers @ Rs. 3/-
36,000
d.
Balls @ 1.00
12,000
e.
Stetcher bar with nuts @ 1.00
12,000
 
Total
1,77,520

X SALARIES & WAGES (PER MONTH)

SI.No.
Designation
Nos.
Total (Rs.)
1.
Manager –cum- Supervisor
1
8,000
2.
Clerk/Accountant
1
4,000
3.
Peon / Watchman
1
2,000
4.
Skilled Worker
1
3,500
5.
Semi-skilled Worker
1
2,500
6.
Un-skilled Worker
3
6,000
7.
Labour welfare : amenities
L.S.
5,000

XI UTILISATION (PER MONTH)

         Water & Electricity Rs. 4000/-

XII OTHER EXPENSES (PER MONTH)

         1.          Rent                                      Rs. 5000/-
         2.          Electroplating Charged          Rs. 4000/-
         3.          Consumable Stores               Rs. 2000/-
         4.          Freight cartage etc.                Rs. 2000/-
         5.          Packing & forwarding            Rs. 3000/-
         6.          Stationery etc.                        Rs. 500/-
         7.          Misc. Expenses                      Rs. 1500/-
         TOTAL                                              Rs. 18000/-

XIII WORKING CAPITAL (PER MONTH)

        1.         Raw Materials         Rs.177520/-
        2.         Staff & Labour        Rs.31000/-
        3.         Utilities                    Rs.4000/-
        4.         Other expenses       Rs.18000/-
                    TOTAL                  Rs.230520
                                or
                   Say                          Rs.230500/-

XIV TOTAL CAPITAL INVESTMENT

        1. Fixed Capital                                 Rs.14000/-
        2. Working Capital for 2 months        Rs.461000/-
        TOTAL                                            Rs.601000/-

XV ANNUAL COST OF PRODUCTION (P.A.)

        1.         Recurring expenses                        Rs.2766000/-
        2.         Depreciation @ 10%                     Rs.14000/-
        3.         Interest on capital investment         Rs.60100/-
                @ 10%
        TOTAL                                                   Rs.2840100/-

XVI TOTAL SALES (PER ANNUM)

        By sale of 72000 pairs of Pedals @ 44/- per pair ---------------Rs. 3168000/-

XVII PROFITABILITY ANALYSIS

        a.         Profit = Sales – Production Cost = 316800-2840100 = Rs. 327900/-
        b.         Percentage profit on sales                                           = 10.3%
        c.         Percentage return on capital investment                       = 54.4%

XVIII BREAK EVEN ANALYSIS

        Fixed Capital Per Annum

        1. Rent                                                         Rs.60000/-
        2. 40% of salaries& wages                           Rs.148800/-
        3. 40% of other expenses                             Rs.44600/-
        4. Depreciation                                            Rs.14000/-
        5. Interest on capital investment                    Rs.60100/-
        TOTAL                                                      Rs.327500/-

BEP = Fixed Cost X 100 / Fixed Cost + Profit

        = 49.9 %

NAME & ADDRESSES OF MACHINERY SUPPLIERS

        1.         International Machine Tools, 5, Bank Street, Fort, Mumbai
        2.         Batliboi & Co (P) Ltd., Maharani Road, Indore
        3.         Atlas Works (P) Ltd., Kolkata
        4.         Gujarat Small Industries Corporation Ltd., Ahmedabad

NAME & ADDRESS OF RAW MATERIAL SUPPLIERS

        Steel Authority of India Ltd (Local Depot)