Project Profile - ELECTRONIC COUNTER

INTRODUCTION:

         Electronic event counters are used to count the number of times an event occurs and can generate output signal for a particular application. These Programmed Pre-Set Counters usually accept inputs from any “make” contact so can be used with pulses from switches, relays, controller outputs or push buttons and generate output signals as required depending on the input signal which can be used to control various functions in a process. The proximity sensor detects the input signal and generates the output signal as programmed in the counter. There are different types of counters for different applications. Electronic counters are generally used in the industries to control the process/operation with specified cycle operation or interval. They find application in the control of functions of industrial machinery or process at varying time intervals for textile industry plastic industries, pharmaceutical industries, petro-chemical industries, power plants etc. Electronic counter consist mainly a proximity sensor, counter, integrated circuits, display panel, transmitter and other electronic components.

MARKET:

         The total production of Electronic equipments in the control, instrumentation and industrial sectors during 2004-05 was Rs 8,300 core as compared to Rs 6,100 core during the year 2003-04. The control, instrumentation and industrial Electronics sector of the Electronics industry play a vital role in the modernization through instrumentation and automation in India’s manufacturing, public utility services and infrastructure sector. As the automation process in the major manufacturing industries like petrochemical, cement, textile, steel, fertilizers, chemicals and manufacturing sectors are likely to increase in the coming years there will be increase in the demand for more process control instruments and equipments. This will have direct impact on the demand for products like Electronic counters and as such the demand for Electronic counters are bound to grow e tin the coming years. Hence there is enough potential for more number of units in this line.

Basis & Presumptions:

         The basis for calculation of production capacity has been taken on a single shift basis on 75% efficiency,
         The maximum capacity utilization on single shift basis, for 300 days in a year. During the first year and second year of operations, the capacity utilization is 60% and 80% respectively. The unit is expected to achieve full capacity utilization from the third year onwards,
         The salaries and wages, cost of raw materials, utilities, rent, etc. are based on the prevailing rates in and around Thrissur. These cost factors are likely to vary with time and location,
         Interest on term loan and working capital has been taken @ 16% on an average. This rate may vary depending upon the policy of financial institutions/agencies from time to time,
         The cost of machinery and equipments refer to a particular make/model and the prices are approximate,
         The break-even point percentage indicated is of full capacity utilization,
The project preparation cost, etc. whenever required could be considered under the pre-operative expense,
         The essential machinery and equipments required for the project have been indicated. The unit may also utilize common facilities available at Electronics Test & Development Centers (ETDC) and Electronic Regional Test Laboratories (ERTLs) set up by state Governments and STQC Directorate of Department of Information Technology, Ministry of Communication and Information Technology to manufacture products conforming to Bureau of Indian Standards.

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:

Sl.No.
Name of the activity
Period in months(Estimated)
1
Preparation of project report
1
2
Registration & other formalities
1
3
Sanction of loan by financial institution
3
4
Plant & machinery:
 
A
Placement of orders
1
B
Procurement
2
C
Electrification & installation
2
5
Procurement of raw materials
2
6
Recruitment of technical personnel
2
7
Trial operation
11th Months
8
Commercial operation
12th Months

         Note: Many of the above activities shall be initiated concurrently,

         When imported equipments are required, the implementation period of the project may vary from 12 months to 15          months,

         Procurement of raw materials commences from the 8th month onwards.

TECHNICAL ASPECTS:

Process:

         The incoming raw material and components are tested for required quantity and specifications. The manufacturing process involves Electronics assembly and Electro mechanical hardware assembly. In electronics assembly all the components are shaped, formed and soldered on pre-designed printed circuit boards. The assembled printed circuit boards are tested for desired performance. The electromechanical components such as connectors, sockets switches, LED display are assembled as per the design of the panel of the equipment. Subsequently the electronic assembly and electromechanical assembly are further assembled to form a compact unit and encased in a metallic or plastic cabin. The final product is then calibrated and tested as per relevant design specifications and customer requirements.

Production Capacity per annum:

Quantity 3,600Nos
Value Rs 93,60,000/-
Motive Power Required 5 KVA (Approx)

Pollution Control:

         Government accords utmost importance to control environmental pollution. The small-scale entrepreneurs should have an environmental friendly attitude and adopt pollution control measures by process modification and technology substitution.
         India having acceded to the Montreal Protocol in September 1992, the production and use of Ozone Depleting Substances (ODS) like Chlorofluoro Carbon (CFC), 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.
         The following steps are suggested which may help to control pollution in electronics industry wherever applicable:
         In electronic industry fumes and gases are released during hand soldering/wave soldering/dip soldering, which are harmful to people as well as environment and the end products. Alternate technologies may be used to phase out the existing polluting technologies. Numerous new fluxes have been developed containing 2 – 10% solids as opposed to the traditional 15 – 33% solids. Electronic industry uses CFC, Carbon Tetrachloride and Methyl Chloroform for Cleaning of printed circuit boards after assembly to remove flux residues left after soldering, and various kinds of foams for packaging.
         Many alternative solvents could replace CFC-113 and Methyl Chloroform in electronics cleaning. Other Chlorinated solvents such as Trichloroethylene, Perchloroethylene and Methylene Chloride have been used as effective cleaners in electronics industry for many years. Other organic solvents such as Ketones and Alcohols are effective in removing both solder fluxes and many polar contaminants.

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 and capacity building of Bureau of Energy Efficiency created under the Act.
The following steps may help for conservation of electrical energy:

         Adoption of energy conserving technologies, production aids and testing
         facilities.
         Efficient management of process/manufacturing machineries and systems, QC and testing equipments for yielding maximum Energy Conservation,
         Optimum use of electrical energy for heating during soldering process can be obtained by using efficient temperature controlled soldering and disordering stations,
         Periodical maintenance of motors, compressors, etc.
         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.

FINANCIL ASPECTS:

A) Fixed Capital

i) Land and Building

Built up Area 150 sq. mtrs
Office, stores 50 sq. mtrs
Assembly and Testing 100 sq. mtrs
Rent payable per annum Rs 72,000/-

ii) Machinery & Equipments

Sl.No.
Description
Indi./Imp.
Qty./Nos.
Value (Rs.)
1
Drilling Machine
Ind.
1
6,000
2
Grinder(portable)
Ind.
1
5,000
3
Oscilloscope( 50 MHz)
Ind.
1
50,000
4
LCR-Q meter
Ind.
1
15,000
5
Power Supply(0-30V, 3Amps)
Ind.
1
20,000
6
Insulation Tester
Ind.
1
5,000
7
Testing Set up (consisting Voltmeter, Ammeter, Wattmeter etc)
Ind.
1
40,000
8
Digital Multimeter
Ind.
2
20,000
9
Analogue Multimeter
Ind.
2
3,000
10
Personal Computer with UPS and Printer
Ind.
1
60,000
Total
 
 
2,24,000
11
Electrification and Installation charges @ 10% of the total above
22,400
12
Temperature Controlled soldering stations, Tools, Jigs, Fixtures, Electronic Screw Drivers etc
50,000
13
Office equipments and Furniture
30,000
14
Pre-Operative Expenses
20,000
 
Total Fixed Salary
3,64,000

B) Working Capital

Recurring expenditure per month

i) Staff & Labour

Sl.No.
Designation
Nos.
Salary (Rs.)
Total (Rs.)
1
Manager
1
6,000
6,000
2
Office Assistant
1
2,500
2,500
3
Design Engineer
1
5,000
5,000
4
Marketing Executive
1
3,500
3,500
5
Peon/Watchman
1
2,000
2,000
6
Skilled worker
4
2,500
10,000
7
Semi Skilled Worker
5
2,000
10,000
 
Total
39,000
 
Perquisites @15% of salary
5,850
 
Total
44,850

ii) Raw Materials p.m

Sl.No.
Particulars
Ind/Imp
Rate/unit(Rs)
1
Metal cabin
Ind
25
2
Printed Circuit Board
Ind
25
3
Integrated Circuits
Ind
500
4
sensors
Ind
500
5
Transmitter, Capacitors, Resistors,
Ind
100
6
Counters, Wires and Switches
Ind
500
7
7-segment display Other components
Ind
100
 
Total
1,750
 
Cost of 300 counters.
5,25,000

iii) Utilities

1
Power
3,500
2
Water
500
 
Total
4,000

iv) Other contingent expenses per month

1
Rent
6,000
2
Stationery, postage & printing
5,000
3
Repair and Maintenance
5,000
4
Traveling and conveyance
10,000
5
Advertising and Publicity
10,000
6
Insurance and Taxes
5,000
7
Other Office Expenses, telephone, internet etc
5,000
8
Other Miscellaneous Expenditure
2,000
 
Total
48,000
 
Total Recurring expenditure per month
6,21,850
 
Working capital (for 3 months)
18,65,550

 

C
Total Capital Investment
Rs.
 
Fixed Capital
3,64,000/-
 
Working Capital
18,65,550/-
 
Total
22,29,550/-

 

D
Financial analysis  
1
Cost of production/annum  
 
Total recurring expenditure 74,62,200/-
 
Depreciation on machinery & equipment @ 10% 22,400/-
 
Depreciation on office equipment & furniture @ 20% 6,000
 
Depreciation on tools, jigs, fixtures etc @25% 12,500
 
Interest on total capital investment @ 16% 3,56,728/-
 
Total 78,59,828/-
2
Turnover per annum  
 
Quantity(Numbers) 3600
 
Total turnover @ Rs 2600/- Rs 93,60,000/-
3
Profit per annum(Before taxes) Rs 15,00,172/-
4
Net profit ratio = Net profit x 100 / Total Turnover 16%
5
Rate of Return = Net profit x 100 / Total Capital Investment 67%
6
Break-even point  
 
Fixed cost per annum  
1
Rent 72,000/-
2
Depreciation on machinery & equipment @ 10% 22,400/-
3
Depreciation on office equipment, furniture @ 20% 6,000
4
Depreciation on tools, jigs, fixtures etc @25% 12,500
5
Interest on total capital investment @ 16% 3,56,728/-
6
40% salary & wages 2,15,280/-
7
40% of other contingent expenses excluding rent and insurance 2,30,400/-
 
Total fixed cost Rs 9,15,308/-
 
Break-even point = fixed cost x 100 / Fixed cost + net profit 38%

Additional Information:

         The project may be modified/tailored to suit the individual entrepreneurship qualities/capacity, production programmer and also to suit the locational characteristics, wherever applicable,
         The technology in this sector is undergoing rapid strides of charge and there is a need for regular monitoring of the national and international technology scenario. The unit, may therefore, keep abreast with new technologies in order to keep them in pace with the developments for global competition,
         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 system and ISO 14001 defines standards for environmental management system for acceptability at international level. The unit may therefore adopt these standards for global competition,
         The margin money recommended is 25% of the working capital at an average. However the percentage of margin money vary as per bank’s discretion,

NAMES AND ADDRESSES OF MACHINERY &
EQUIPMENT SUPPLIERS

1
M/s. International Machine/Tools
Corporation,5, Banks Street,
Behind Bank,Fort, Mumbai-400023
Machinery & Tools
2
M/s Quality Machine Tools,
34,J.C Road,VLSL Building
Banglore-560002
Machinery & Tools
3
M/s Electronic Trade and Technology
Dev Corporation Ltd,15/48,
Malcha Marg,New Delhi-110021
Machinery, Testing Equipments & Components
4
M/s Aplab Limited,XL 1/583,
II nd floor, Krishna NivasAdv.
Eashwara Iyer Road,
Kochi-682035 Tel: 0484-2361623
E-mail: aplabkochi@vsnl.net
Test & measuring equipments
5
M/s. Meco Instruments Private Limited
P.O. Box 6388,301, Bharat Industrial Estate
T.J. RoadSewree(W)Mumbai-400015
Tel.022-24137253/24137423
Email - sales@mecoinst.com
www.mecoinst.com
Testing Equipments
6
M/s. Sumitron Exports Pvt.Ltd.27,
Community Centre Narina
Phase-INew Delhi-110028
Ph. 011-25893783/25891519
Email: sumitron@vsnl.com
web www.sumitron.com
Soldering equipments and tools etc.
7
M/s. DVance Tech Services
56-Second FloorRani Jhansi Road
New Delhi-110055Ph. 011-23684683,23684684
E-mail info@advancetechinfo.com
Web. www.advancetech-info.com
Tools and Soldering stations
8
M/s. Tomson ElectronicsPuliackkal Buildings
PallimukkuyM.G Road ,Kochi-682016
Ph. 0484-2356973,2356022
Email tomsonelectronics@hotmail.com
Web www.tomsonelectronics.com
Components
9
M/s. Wipro Info Tech38/628-F
4th FloorA&P Arcade SA Road
Kochi-682016Ph. 0484-2312379
Web www.wipro.co.in
Computers
10
M/s RX Electronic Centre,
39/3958-B,Padmalayam Building
M G Road, PallimukkuKochi-682016
E-mail:rx@rx.electronics.com
Tel:0484-2382494
Testing Equipments & Components
11
M/s. Component & Devices
Manikkiri Cross Road Kochi-682016
Phone:0484-2353150, 2382250
Email Component@md3.vsnl.net.in
Testing Equipments & Components
12
M/s. Laxmi ElectrotekManappat Centre
HMT JunctionKaloamassery
P.O Ernakulam District Kerala 683 104
Phone 0484-2551288, 2540321
Testing Equipments & Components