PROJECT PROFILE
SPOKES, NIPPLES & WASHERS - CYCLE
I PRODUCT & ITS USES
Spokes, Nipples and Washers are one of the main components
of rim assembly of bicycles; auto cycles, motorcycles, and
mopeds wheel assembly. These are required for new vehicles
as original equipment as well as for replacement purposes.
II MARKET POTENTIAL
The automobile (two wheeler and three wheeler) and bicycle
industry is growing at a very fast rate. Many new plants
have come up during the last few years for the manufacture
of two wheelers. The bicycle manufacturers are also increasing
their production every year. These are also considerable
demand for the replacement market. This is good scope for
this industry.
III PRODUCTION TARGET (PER ANNUM)
The project profile envisages the manufacture of 60,000
gross sets of spokes, nipples and washers per annum for
bicycles.
IV BASIS & PRESUMPTIONS
1. The
project profile has been prepared on the basis of single
shift of 8 hours and 75% efficiency.
2.
The cost of machinery and equipment as indicated in the
profile refer to a particular make and the prices are approximate
those ruling at the time of preparation of this report.
3.
The provisions made in respect of raw materials, personnel,
utilities and overheads etc. at the prevailing rates and
are approximate only.
4.
The rate of interest has been taken on the basis of 10%
per annum.
5.
The break-even point has been worked out on the basis of
full capacity utilization.
V PRODUCTION DETAILS & PROCESS
OF MANUFACTURE
Process Outline: -
a.
Spoke Steel Wire is cut to the required length from coil
on the automatic straightening, cutting and heading machine.
The other end is thread rolled. All these operations are
done on one automatic machine.
b.
Brass Wire in coil is fed and nipple blanks are headed or
upset.
c.
The headed
nipple blanks are finished by rough drilling, finish drilling,
square milling, slot milling and tapping with one automatic
6 station/head machine.
d.
Punching
and stamping of washers.
e.
The products
are nickel plated and packed.
VI QUALITY CONTROL & INSPECTION
IS Specification No. 630 may be followed for quality control.
Thread ring gauge should be used for checking the thread
and snap gauge for square milled size of nipples.
VII LAND & BUILDING
Building of 250 sq. meters will be required on rent @ Rs.
5000/- per month.
VIII MACHINERY & EQUIPMENTS
SI.No. |
DESCRIPTION OF MACHINERY |
Nos. |
Amount (Rs.) |
1. |
Automatic universal spokes making machine with straightening,
cutting , equalizing, head upsetting bending and threading
rolling devices. Collection cracle for the spoke machine
to be fitting with flywheel and built in friction clutch.
motor drive with reduction years, 3HP 400/440.50 cycles,
3 phase, electric motor capacity 80 spokes / minute
complete with spare tools etc. |
1 |
3,00,000 |
2. |
Automatic 6 station nipple blank finishing machine
with one set of tools, equipped with feeding centering
rough and finish drilling square milling slot milling
and tapping devices complete with 3 HP motor and coolant
pump. |
1 |
5,00,000 |
3. |
Automatic upsetting machine for nipple blanks with
straightening and cutting devices and one set of dies
complete with 3 HP electric motor capacity 160 nipples
/ minute |
1 |
1,00,000 |
4. |
Special purpose automatic punching and stamping press
for manufacture of bent washers, complete with automatic
strip feeding attachment electric motor etc. Capacity
350 washers/minute. |
1 |
75,000 |
5. |
Nickel platting equipment complete with reftifier
degreasing washing and drying plant. |
1 |
1,00,000 |
6. |
Centre lathe 12mm bed complete with electric motor
and accessories. |
1 |
2,00,000 |
7. |
Tool and cutter grinder Addison type |
1 |
50,000 |
8. |
Bench drill machine 15 mm dia capacity with electric
motor |
1 |
10,000 |
9. |
Erection installation and electrification |
1 |
5,000 |
10. |
Set of spare tools for automatic machines, measuring
instrument, Gauge |
1 |
2,00,000 |
11. |
Misc Hand tools etc. |
|
5,000 |
12. |
Office equipment and furniture |
|
15,000 |
|
Total |
|
12,90,000 |
IX RAW MATERIALS (PER MONTH)
1. |
High carbon steel wire 5.4 Tonnes @ Rs.
40000 per MT |
216000 |
2. |
Brass wire for nipples 1 Tonn @ Rs. 120000 per tonne |
216000 |
3. |
Steel strip 20 SWG for washer 0.5 tonn @ Rs. 40000
per tonne |
20000 |
|
Total |
356000 |
X SALARIES & WAGES (PER MONTH)
SI.No. |
Designation |
Nos. |
Total Cost
(Rs.) |
1. |
Manager –cum- Engineer |
1 |
10,000 |
2. |
Foreman |
1 |
6,000 |
3. |
Clerk/Accountant cum storekeeper |
1 |
3,000 |
4. |
Peon/Watchman |
1 |
2,000 |
5. |
Skilled Worker @ 3000/- pm each |
4 |
12,000 |
6. |
Semi Skilled Worker @ 2500/- pm each |
2 |
5,000 |
7. |
Labour welfare: amenities |
L.S. |
6,000 |
|
Total |
|
48,000 |
XI UTILISATION (PER MONTH)
Water and Electricity-------------------Rs.10,000/-
XII OTHER EXPENSES (PER MONTH)
1.
Rent Rs.5000/-
2.
Postage Stationery & Telephone Rs.2000/-
3.
Transportation & Cartages Rs.2000/-
4.
Advertisement
Rs.3000/-
5.
Oil Grease Cotton waste etc. Rs.10000/-
6.
Electroplating salts, buff, compound Rs.5000/-
7.
Repairs & Maintenance of machinery Rs.3000/-
8.
Packaging & forward Rs.3000/-
9.
Misc Expenses
Rs.2000/-
TOTAL---------- Rs.35000/-
XIII WORKING CAPITAL (PER MONTH)
1.
Raw Materials
Rs.356000/-
2.
Staff & Labour
Rs.48000/-
3.
Utilities Rs.10000/-
4.
Other expenses Rs.35000/-
TOTAL
---------- Rs.439000/-
WC
for 2 months =
Rs.878000/-
XIV TOTAL CAPITAL INVESTMENT
1. Fixed
Capital Rs.1290000/-
2.
Working Capital for 2 months Rs.878000/-
TOTAL Rs. ---------
2168000/-
XV ANNUAL COST OF PRODUCTION (P.A.)
1. Raw
materials
Rs 4272000/-
2.
Staff & Labour Rs.576000/-
3.
Other expenses Rs.720000/-
4.
Depreciation on machinery@ 10% Rs.124000/-
5.
Depreciation of Tools@20% Rs.7000/-
6.
Depreciation on furniture@20% Rs.3000/-
7.
Interest @ 10@ on Capital Investment Rs.216800/-
TOTAL Rs. --------- 5618800/-
XVI TOTAL SALES (PER ANNUM)
1. Sale
of spokes, nipples & wshers 60000 gross @ Rs. 100/-
gross Rs.6000000/-
2. Sale
of scraps 3 Tonne @ 3000/- Ton
Rs.30000/-
3. Sale
of brass scrap 3 tonn @ Rs.60000/- tonn Rs.180000/-
TOTAL
Rs. -------- Rs. 6210000/-
XVII PERCENTAGE OF PROFITE
%
of Profit on Sales = 9.5%
% of profit
on investment = 27.26%
XVIII BREAK EVEN ANALYSIS
Fixed Capital Per Annum
1.
Rent Rs.60000/-
2. 40%
of salaries& wages Rs.230400/-
3. 40%
of other expenses Rs.144000/-
4. Depreciation
Rs.134000/-
5. Interest
on capital investment Rs.216800/-
TOTAL Rs. ---------- Rs.784400/-
BEP = Fixed Cost X 100 /
Fixed Cost + Profit
= 57.02%
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)