AUTOMOBILE GASKETS A. INTRODUCTION B. PRODUCT USES AND SPECIFICATIONS
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1 AUTOMOBLE GASKETS A. NTRODUCTON The function of a gasket is to seal the two faces of components to avoid leakage of fluid and air in the system in automobiles and other pneumatic and hydraulic systems gaskets are used. Metallic and non metallic gaskets are used.there is large demanded for the Automobile gaskets for replacement and O.E markets. B. PRODUCT USES AND SPECFCATONS Bureau of ndian standards has not prescribed standards for the automobile gaskets. The main types of gaskets which are manufactured are as follows. Cylinder head gaskets Head Gasket Full Set Gasket Timing Kit Gasket Rocker Cover Gasket Rocker Cover Kit Gasket Oil Seal Gasket Ex-manifold Gaskets Exhaust pipe Gaskets nlet Gasket Oil Pan Gasket Oil Pan Set Gasket Flange Gasket Chamber gasket Spenting Roll Gasket Water Pump gasket CV Joints Boots Head Set Conversion Set nlet- manifold 1
2 C. MARKET POTENTAL There are two types of demand for Automobile Gaskets 1. O. E. Demand and 2. Replacement demand. The O. E Demand will increase with the production of original vehicles. The replacement demand is dependent on the wear and tear and replacement of the vehicle owners as this is a critical equipment and replacement is essential to run the vehicle, the replacement demand is bound to increase. With the setting up major automobile projects namely Ford Motors, Hyundai Motors, Hindustan Motors, Mitsuibishi and with expansion plans of Ashok Leyland & TAFE, Chennai emerges the Detroit of south East Asia. TamilNadu has always been a fore-runner in the industrial process, both in terms of industrial output and also terms of encouraging various new large-scale projects. Having recorded an impressive is growth industry in the postreform span, it is poised for further industrial development and expansion. At present the state accounts for over 11-12% of ndia s industrial output. Automobile ancillaries have O.E. Market and Replacement market for all automobile D. TECHNCAL ASPECTS 1. nstalled Capacity The proposed installed capacity of the unit is 4800 Kgs of Automobile Gaskets per annum.this is based on a capacity of 160 Kgs per day of single shift operation,8 hours per day, 300 days in a year. 2. Plant and Machinery The following machineries are required for production. Machine name Quantity Nos Value Rs lakhs Power Press 10 Mt capacity Bench grinder Fly Press No Hand shearing machine Portable Drilling machine Dies and fixtures Hand tools and Measuring nstruments 0.11 Total
3 3. Manufacturing Process Purchase of Gasket Sheets (Cork sheets, Asbestos sheets, Rubber sheets, etc) Cutting in shearing machine Gasket Punching in Power Press with use of dies and punches Drilling holes and grinding Finishing Packing 4. Raw Material The raw materials required for the production of Automobile gaskets are Gasket Sheets of various thicknesses. This material can be procured from any reputed dealers of steel. 5. Land & Building A rented place with 600 sqft. area is required. The monthly rent is estimated at Rs.3,000 and also an advance of Rs Utilities Power: The total power requirement of the unit will be 20 HP Water: Water is required only for human consumption. Man power: Category Nos Monthly salary Total Salary Operators Unskilled Assistants Security Total Add 20%benefits 2600 Total Annually -> Rs 1.87 lakhs 3
4 7. mplementation Schedule f financing arrangement is made available the project can be implemented with in three months period. 8. ASSUMPTONS nstalled Capacity per annum Automobile Gaskets 4080 Kgs p.a. Capacity utilization - Year 1 60% - Year 2 70% - Year 3 80% Selling price per piece Automobile Gaskets Rs.250 /Kg Raw Material required per Kg Gasket sheets of various thicknesses 4900 Rs per kg Value (Rs.) 3.68 Consumables cost p.a. at 100% (Rs.lakhs) Rs.0.24 lakh Power & Fuel at 100% (Rs.lakhs) Rs.1.61 lakh p.a Wages & Salaries (Rs.lakhs) Rs.1.87 lakhs Repairs & Maintenance per month Rs.2,000 p.m Depreciation Written Down Value method Administrative & General expenses p.m. Rs.5,000 Selling expenses 3% nterest on Term loan and Working capital 14% finance 4
5 LST OF MACHNERY SUPPLERS 1. Orient Machine Tools New 269(old no 130) Linghi Chetty Street Chennai Quality Machine Tools New 238 Linghi Chetty Strret Chennai Gujrat Machine Tools New 279, Linghi Chetty Street Chennai Premier Machine Tools New 103 Armenian Street Chennai Machine Centre New 214 linghi chetty Street Chennai LST OF RAW MATERAL SUPPLERS 1. Brook nc 576, Mount road Chennai National Core Products ndia New 320, T.T.K.Road Chennai Anchor Cork Pvt Ltd LOBO Compound M.V. Road Sakinaka Mumbai Rubber Sales Corporation 22 Mooker Nallamuthu Street Chennai Rusko nternational Products 22, Mooker nallamthu Street Chennai
6 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 0.30 Plant & Machinery 1.00 Other Misc. assets 0.20 Pre-Operative expenses 0.20 Margin for WC MEANS OF FNANCE Capital 1.55 Term Loan
7 3. COST OF PRODUCTON & PROFTABLTY STATEMENTS [Rs.lakhs] Years nstalled Capacity (Kgs.) Utilisation 60% 70% 80% Production/Sales (Kgs.) Selling Price/kg (in Rupee) 250 per Kg. Sales Value Raw Materials Consumables Power Wages & Salaries Repairs & Maintenance Depreciation Cost of Production Admin, & General expenses Selling expenses nterest on Term Loan nterest on Working Capital Total Profit Before Tax Provision for tax Profit After Tax Add: Depreciation Cash Accruals
8 4. WORKNG CAPTAL: [Rs.lakhs] Months Values % Margin Bank Consumption Amount Finance Raw Materials % Consumables % Finished goods % Debtors % Expenses % PROFTABLTY RATOS BASED ON 80% UTLSATON Profit after Tax 0.95 Sales % Profit before nterest and Tax 1.62 Total nvestment % Profit after Tax 0.95 Promoters'Capital % 8
9 6. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 2.06 Repairs & Maintenance 0.26 Depreciation 0.10 Admin. & General expenses 0.66 nterest on TL Profit Before Tax (P) 1.48 BEL = FC x x FC +P x % of installed capacity 9
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