INTRODUCTION

Surround sound is the multiple channel audio system that gives the same effect of a cinema hall sound in a room. In the basic form, besides the normal stereo channels, surround sound adds a centre speaker at the front to enhance the clarity of dialogue and rear speakers to add depth for ambience and special effects. Surround sound is the concept of expanding the spatial imaging of audio playback from one dimension to two or three dimensions. The surround sound effect can be achieved by processing an existing stereo (two channel) sound track to add spaciousness and make it appear to originate from outside the left/right speaker locations which provides more realistic audio environment. . In the surround sound system; one can experience different parts of the soundtrack coming from different places.
Generally a home theater system is designed to recreate the experience of watching a movie in a theater and produces more audio visual effects than when one watches an ordinary television.A surround Sound system is an integral part of the popularly used Home Theaters, and it really makes a home theatre experience complete

MARKET POTENTIAL

The demand for Surround Sound System is increasing rapidly with more and more people opt to convert their living rooms to Cinema theatres for a better audio&visual effect. It's not just music programs& films that benefit. Sports, films, dramas and other programs become totally involving, giving a genuine sense of 'being there'. With an audiophile quality hi-fi system effect, the surround system is widely accepted now. TV/DVD users are increasingly converting to the hi-fi surround sound system with the addition of a a proper hi-fi amplifier and a pair of good loudspeakers. The leading consumer electronics brands Like Sony, LG, Samsung, Videocon, and Akai etc are manufacturing this product and their products are aimed to the specific market. But there is enough potential for the locally assembled systems with lower cost (without compromising much on the performance) among the price conscious costumers who are eager to convert their living room to a cinema theatre. There are a few entrepreneurs manufacturing Surround Sound System in Kerala. There is enough scope to manufacture the Surround Sound System as per the requirement of the local market.

BASIC & 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 @ 14% 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 Centres (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:

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:

The main parts of a surround sound system are Audio processor, Sub-Woofer and Speakers. Audio processor is the heart of surround sound system and provides most of the inputs and outputs to which the components of the home theatre are connected. The processor combines the radio tuner and pre-amplifier that process the AV signal from the source (CD/DVD Players) to TV and correct amplifier channel and built in multi channel amplifier that sends surround sound signal and power to the speaker systems.

The Audio processor kept inside Sub Woofer enclosure will process this stereo signal in to 2.1 or 5.1 or 6.1 Channels and amplifies this signal to required level and this is fed to the out put speakers. One the main out put terminal of Audio processor is the sub woofer out. Sub woofer is special type speaker set-up in home theatre and is used for the reproduction of extremely low frequency present in movies or music.

The home theater system need several identical, standard speakers – exact number depends on how many channels needed for surround sound set up. In ideal condition, it needs five identical speakers to ensure rich sound from all sides. To get theater-quality effects, it should have three identical, full size front speakers.

In this project, the following three types of systems are considered;
• 2.1 (2 Speakers + sub woofer)
  A 2.1 surround-sound setup includes left, right front speakers. It also has a sub woofer.
• 5.1 (5 speakers + subwoofer)
  A 5.1 surround-sound setup includes left, center and right front speakers. It also has left and right surrounds speakers. Dolby Digital, Dolby Pro   Logic II and DTS 5.1 will all support this format. DTS 96/24 uses a 5.1 channel format to play audio at the same sampling rate at which it was   recorded.
• 6.1 (6-7 speakers + subwoofer)
  A 6.1 setup takes all the speakers from 5.1 and adds a rear channel. Dolby Digital EX uses this format, splitting the one additional channel into left   and right rear speakers. DTS-ES, on the other hand, uses a rear center speaker. DTS Neo:6 can also support a 6-channel format.

Process of manufacture

The incoming raw materials and components are tested for required quality and specifications. The components are formed, shaped and connected/soldered on the circuit board are tested for desired performance. The boards and components and other electromechanical components are mounted inside the sub woofer enclosure, electrical wiring is made. Switches, knobs etc are fixed to the front side enclosure. The surround sound system is tested for required performance by using Audio test system.

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:

1 Adoption of energy conserving technologies, production aids and testing
facilities.,

2 Efficient management of process/manufacturing machineries and systems, QC and testing equipments for yielding maximum Energy Conservation,

3 Optimum use of electrical energy for heating during soldering process can be obtained by using efficient temperature controlled soldering and disordering stations,

4 Periodical maintenance of motors, compressors, etc.

5 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.

Production Capacity per annum:

FINANCIAL ASPECTS:
Fixed Capital

(i) Land and building

(ii) Machinery & Equipments

WORKING CAPITAL
Recurring expenditure per month
i) Staff & Labour

ii) Raw material / month(for 150 systems)

iii) Utilities / month

iv) Other contingent expenses per month

Total Capital Investment

Financial analysis

Total Turn over per annum

Profit per year

     = Turnover – Cost of production = 5,99,910
        Percentage of profit on sales = Profit per year X 100 / Total turn over
     = 8.5 %

        Percentage of profit on capital investment = Profit per year x 100 / Total capital investment
     = 34%

Break Even Analysis :
    Annual Fixed Cost

Break Even Point
             = Fixed Cost x 100 / Fixed cost + Profit
             = 57%

Additional Information:

1 The project may be modified/tailored to suit the individual entrepreneurship qualities/capacity, production programme and also to suit the locational characteristics, wherever applicable,

2 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,

3 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,

4 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 & ADDRESSES OF MACHINE & EQUPIMENT SUPPLIERS