Production Code : Quality Standard : IS : PVC Insulated Cables for Voltage up to and including 1100 Volts.
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1 PROJECT PROFILE ON ELECTRIC POWER CABLE Production Code : Quality Standard : IS : PVC Insulated Cables for Voltage up to and including 1100 Volts. Production Capacity : 4mm 2 Al. Con. 1 core, Coils 4mm 2 Al. Con. 1 core, Coils Month and Year of : July, 2003 Preparation Prepared By : Br. Small Industries Service Institute, Udyog Vihar, Chorhata, Rewa (M.P.) (147)
2 1. INTRODUCTION: PROJECT PROFILES ON : ELECRIC POWER CABLES Cables and wires are major equipment for transmission & distribution of electrical power. They are suitable for use in substations, distribution systems, Industrial installations, house wiring, street lighting. PVC insulated wires and cables are the ultimate medium for distribution of electricity. This project profile envisages manufacturing or PVC 4mm 2 6mm 2 aluminum conductors extensively used in house wiring service connections, Railways, permanent & temporary connections of electrical power from overhead lines to customers previous/machines. There are 40 SSI units manufacturing cables in the state of Madhya Pradesh, but with reference to Vidhya region only 05 units are at present manufacturing this products, some of them are- (1) M/s. Bhadora Industries, 4, Semi Urban Industrial Estate, Dhonge, Tikamgarh (MP) (2) M/s. Jain Plastic Industries, Kasagar Ki Gali, Tikamgarh (MP) (3) M/s. Awasthi wire Industreis, Shakti Talkies Road, Tikamgarh (MP) (4) M/s. Daksh Wire & Cables, 71, Udyog Vihar Chorhata, Rewa (MP) (5) M/s. Indian Cable Industries, Udyog Vihar, Chorhata, Rewa (MP) Some of the prominent cable manufacturers in Mahakaushal region are as follows- (1) M/s. Vanganga Electricals, Village-Garra, Block - Lalbarra Varaseoni, Balaghat (MP). (148)
3 (2) M/s. V.K. Electricals, Richhai Industrial Area, Jabalpur (MP) (3) M/s. Carry Power Enterprises, Richaai Indl. Area, Jabalpur (MP) (4) M/s. R.K. Cables, Cotegeon, Narsinghpur (MP) (5) M/s. Savedaya Indl. Corporation, 31, Audyogik Centre, Katni (MP) (6) M/s. Indian Electrical Industries, 9, New Bazar, Jabalpur (MP) (7) M/s. Precious Cables & Wire Enterprises, R.B , Jabalpur (MP). II. MARKET POTENTIALS: Demand of this product will increase day by day due Electrification, colonization, exclusively some of the bulk purcheser s of this product are (i) (ii) Coal fields & collreries, Electricity Boards, (iii) Railways, (iv) All types of Power Stations, (v) Housing Boards/Colonisers. Major scope of market for this product is in new installation/fitting & replacement 75 : 25 Entrepreneurs are advised to have close vision on both aspects. To avoid unhealthy competition between the entrepreneur s itself. Strict quality norms as per standards specification are the main factors and to be followed strictly. ETDC, ER TL, R TC, Electrical Research & Development Association Vadodara is the major development & testing centers for this product Entrepreneurs venturing in field of manufacturing of this product are advised to seek any help for testing of their products. However, in area where cluster of such industry are present testing centers can be set-up under Govt. directives. (149)
4 III. IMPLEMENTATION SCHEDULE: The major activities in the implementation of the project has been tested and the average time for implementation of the project is estimated at 12 months. Period (in months) 1. Preparation of project report Registration and other formalities Sanction of loan by financial institutions 3 4. Plant & machinery: a. Placement of orders. 1 b. Procurement. 2 c. Power connection/electrification. 2 d. Installation/ Erection of machinery/test Equipment Procurement of raw materials Recruitment of technical personnel 2 7. Trial production Commercial production 12 IV. BASIS & PRESUMPTIONS: 1. Land & building is proposed on rental basis. 2. Labour wages mentioned are prevailing in the state of Madhya Pradesh. 3. Margin Money requirement may differ on the type of financial institutions/entrepreneur 4. Cost of machinery, Raw material, Test Equipments may vary from place to place cost given is approximate & may vary. 5. Minimum one rear is required for full capacity utilization. 6. Break even poin is calculated on full capacity utilization. 7. Total capital investment has been calculated by taking 3 months working capital in to account. (150)
5 8. Rate of interest has been taken is 20% may differ depending on type of financial institution one to another. 9. The basis for calculation of production capacity is on single shift basis working of 25 days/ 300 days in per month/year respectively. V. TECHNICAL ASPECTS: (i) EC grade aluminum wire is feed in to extruder. As Wire passes through die in extruder uniform coating of PVC is obtained all around the wire. (ii) Then wire to be passed through cold water for cooling. (iii) After this High Voltage testing to be carried out by High Voltage tester to check up the insulation strength. (iv) Name of manufacturer/brand name is printed on cable after emergence from extruder and before cooling. (v) Wire is cooled in to lengths of 100 metres on the take off system and tested. As per IS specification for following tests- (i) Tensile Test, (ii) Ageing Test, (iii) Insulation Test, (iv) Resistance Test. VI. QUALITY SPECIFICATION: IS : VII. PRODUCTION CAPACITY: coils of 91.4 meters each of 4mm 2 cable coils of 91.4 meters each of 6mm 2 cable. VIII. POWER REQUIREMENT: Approximate 3000 KWH is power requirement per month for this unit. In full capacity utilization 120 KWH is per day requirement of power. IX. POLLUTION CONTROL REQUIREMENT: 1. This is pollution free manufacturing process. 2. Waste minimization of PVC compound to be strictly adhered. (151)
6 X. ENERGY CONSERVATION REQUIREMENT: 1. If a load exceeds more than 10 kilowatt capacitor to be installed for power factor improvements. 2. Units should follow strict energy conservation by using electronic fan regulator/cf lamps. FINANCIAL ASPECTS I. FIXED CAPITAL: (a) LAND & BUILDING: It is proposed to have rental shed at the cost of Rs. 5000/- per month. (b) MACHINERY & EQUIPMENT: Ind/Imo. Qty. Price 1. PVC extruder 65mm with cooling Ind ,00,000 through take off & take up system. 2. Wire straightening eqpt , Embossing roll for Embossing name 01 10,000 of manufacturer. 4. Coil winding & length measuring 01 30,000 machines. 5. Extrusion dies & nozzles LS 20,000 (c) TESTING EQUIPMENTS: 20,70,000 Qty. Price 1. Continuous Spark Tester 01 15, Kelvin Bauble Bridge 01 15, Tensile Testing Machine 50, 1000, 500 Kg , Mugger 500v DC 01 2, High Voltage Test Set 0-10 KV AC 01 15,000 (152)
7 6. High Voltage Test Set 0-2 KV DC 01 6, Ageing Test Apparatus 01 25, Fire resistance testing apparatus 01 15, Hot Water Bath 01 7, Traveling microscope 01 3, Micrometer 0-25mm 01 2, HV Test Set AC 0-10 KV with misc equipment 01 20,000 calipers etc. (d) AUXILLARY EQUIPMENTS: 1,77, Electrification & Installation 22, Furniture & Office Equipments 30, Fire Extinguisher (CTC) 10,000 (e) TOTAL COST OF PLANT & MACHINERY: B+C+D 20,70, ,77, ,470 = 23,09,470 Rs.23,09, II. RECURING EXPENDITURE : (a) PERSONNEL (per month) : 62,000 (1) Manager 1 5,000 (2) Skilled worker 10 15,000 (3) Unskilled worker 10 10,000 (4) Clerk/ Accountant 01 10,000 (5) Watchman/Peon 2 2,000 33,000 (153)
8 (b) RAW MATERIAL : Description Qty. Rate Value 1. EC Grade AI. wire 2 Mtr /mtr. 40, PVC Compound (Cable 3 Mtr /mtr. 1,80,000 grade) 3. Packaging material , Misc. item (Bobbin for , meters coils) (c) UTILITIES (Per month) 2,70,000 (1) Electricity 5,000 (2) Water 1,500 (3) Advertisement/Packing 1,000 (4) Transportation 3,000 (5) Miscellaneous 3,000 III. WORKING CAPITAL (per month) : (A + B + C) 33, ,70, ,500 = 3,16, IV. TOTAL CAPITAL INVESTMENT: 13,500 (1) Machinery & Equipment 23,09,470 (2) Working Capital for 3 months 9,49,500 32,58,970 (154)
9 V. COST OF PRODUCTION (per Annum) : (1) Rent 60,000 (2) Staff & Labour 3,96,000 (3) Raw Material 32,40,000 (4) Depreciation on plant & 10% 2,30,947 (5) Interest on total capital 20% 4,71,794 VI. TURN OVER (Per Annum) : (155) Say Rs. 43,98,741 43,98,000 (1) By sales of coils of 4mm 2 cable 27,00,000 (91.4 meters 150/- each (2) By sales of coils of 6mm 2 cable 36,00,000 (91.4 meters 200/- each. VII. PROFITABILITY (Per Annum) : 63,00,000-43,98,000 = 19,02, VIII. NET PROFIT RATIO: IX. RATE OF RETURN: x l 00 = 43.24% x l 00 = 58.36% X. BREAK EVEN ANALYSIS: a. FIXED COST: 63,00,000 (1) Rent 60,000 (2) Interest on total capital investment. 4,71,794 (3) Depreciation on plant & 10% 2,30,947 (4) 40% of salary & wages 1,58,400 (5) 40% of contingent utilities 64,800 9,85,941
10 b. BREAK EVEN POINT: FCx100 = xl00 = FC + Profit = 34.13% = 34.13% XI. GENERAL INFORMATIONS: (a) (b) (c) (d) Project Profile may be modified/tailored to suit the individual entrepreneurship qualities/ capacities, production programme and also to suit the locational characteristics wherever applicable. The Electrical technology is undergoing rapid strides of change and there is need for regular monitoring of national and international scenario. The unit may therefore keep abreast with the 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 environments in which they are generated. The ISO-9000 defines standards for Quality Management Systems and ISO 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 requirement at an average. However the percentage of margin money may vary as per banks discretion. XII. NAME & ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS: 1. M/s. Shiman Engg. Works PVC Extruders & 2535, Prem Narayan St. allied machines. Churiwalan, Delhi M/s. MSIC Ltd. (Marketing Divn.) Near Okhla Indl. Estate, New Delhi 3. M/s. Prince Plastic Machinary Co. Ltd. Plot No. 55, Indl. Estate, Kandivili, Bombay 4. M/s. Boolani Engg. Corpn. Prabha Devi Indl. Estate, 402, Veer Savarkar Marg, Bombay (156)
11 5. M/s. Toshinwal Bros. (P) Ltd. Kelvin Bridge M.G. Road, Ajmer. 6. M/s. BPL India Ltd. Insulation Tester 304, Ashok Bhavan, Nehru Place, New Delhi M/s. Rectifiers & Electronics High Voltage Testing WH-49, Mayapuri Indl. Estate, Equipments AC & DC Phase-I, New Delhi. 8. M/s. Automatic Electric Co. Ltd. Spark Testers. Rectifier House 570, Nigam Cross Road, Ph. No. 7103, Bombay 9. M/s. Naran Trading Agency 1. High Voltage Test Box. 6657, Bandra, Bombay-50 Equipment AC & DC 10. M/s. Blue Star Ltd. Bhandari House, 91, Nehru Place, New Delhi 11. M/s. Precission Scientific Oven etc. Equipment Works, 26, Patel Road, SP Nagar, New Delhi (157) 2. Spark Tester. Tensile Testing Machine. 12. M/s. Oriental Scientific Kelvin Bridge Apparatus Workshop, J.L. Nehru Marg, Ambala Cantt XIII. ADDRESSES OF RAW MATERIAL SUPPLIERS: 1. M/s. National Organic Chemical PVC Compound Industries Ltd. Bank of Baroda Building, Parliament Street, New Delhi.
12 2. M/s. Shri Ram Industries Ltd. PVC Compound Shri Ram Nagar, Kota, Rajasthan 3. M/s Indian Aluminium Co. Ltd. ECG Aluminium United Commercial Bank Building, Parliament Street, New Delhi (158)
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