4 PRODUCTION CAPACITY ; (Per annum) QUANTITY ; 2400 Nos. Rs
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1 Project Profile-updated 1 NAME OF THE PRODUCT ; Auto Service Station 2 PRODUCT CODE ASICC CODE NIC Code QUALITY AND STANDARDS ; As per customer specification 4 PRODUCTION CAPACITY ; (Per annum) QUANTITY ; 2400 Nos. Rs MONTH AND YEAR OF PUBLICATION: March, Prepared By MSME-Development Institute, 22 Godam, Jaipur Ph Fax E Mail- dcdi-jaipur@dcmsme.nic.in web- msmedijaipur.gov.in
2 Auto Service Station 1. Introduction :- Auto Service Station is a service venture. It provides vast scope for employment generation in urban, rural and far flung areas. At Auto Service Station the servicing of cars, L.C.Vs, H.C.Vs, & other such Four wheelers etc. are being done. Apart from Washing, Greasing of vehicles, general repair work is also being carried out at the service station. 2. Market Potential :- There is a phenomenal growth of the automobile sector in the recent past. It has created a substantial demand for auto service station type of venture. This unit is more viable in the areas such as National Highways, city by passes etc. As per the statement made by car industry body, the Indian auto market is expected to run at a rate of percent in the present fiscal. Talking about the last fiscal, the Indian auto industry went through the best sales and now in this year it is expected to come up with even better news for auto majors by offering a growth of 12 to 13 per cent. The reports given by Society of Indian Automobile Manufacturers, a hike of 24 % is expected in the year 2011 in the field of Car, LCV & HCV vehicle. This trend is possible through the availability of easy loans and range of choices available in the market. As the market of auto service is directly proportionate to the automobile Sales, there exists a substantial scope for such stations. 3. BASIS AND PRESUMPTIONS; 1 The project report is worked out on 75% capacity utilization, single shift working 300 working days per annum. 2 The machinery and equipments are of standard make. 3 The raw material utilization and other expenditure are approximate and are based on current market rates. 4 The period for achieving envisaged capacity utilization is estimated three years after commencement of product 5 Interest rate for fixed capital has been calculated at 12% however it vary time to time. 6 Pay back period would commence after a maintenance period of 12 months and the repayment period are expected upto 3 years. 7 Margin Money/State subsidies have been calculated in accordance with the prescribed norms as applicable. 4. IMPLEMENTATION SCHEDULE ; The implementation schedule of the project would be as per the following details: 1 Selection of the venture: The entrepreneur has to arrive at a decision in order to select the venture. The guiding factor in this regard would be the market potential, demand & availability of resources 2 Thereafter the entrepreneur has to get provisional registration certificate from D.I.C. and find out a suitable site for the project.
3 3 In order to obtain loan from financial institutions like Commercial Banks or State Financial Corporations detailed project report is required to be prepared through MSME-DI or through RajCon etc.. The financial institutions may take 8 to 12 weeks in sanctioning & disbursing the loan. 4 As soon as loan is sanctioned building plans if required may be prepared or accommodation may be hired on rent. The order for plant & machinery may be finalized & placed. Simultaneously orders for purchase of raw material is also to be finalized and recruitment of essential staff is to be done. The formalities for power, water telephone connection etc. are also to be done. This would require 3 to 4 weeks. 5 The plant & machinery received should be installed & commissioned within 4 to 6 weeks and workshop staff should be recruited. The trial run of the installed plant & machinery may be commenced and the plant may be run on commercial basis. 5. TECHNICAL ASPECTS: i) MANUFACTURING PROCESS : 1. Servicing Method The servicing of the automobile vehicles would be done at auto service station. The important activities would include washing of the vehicle, greasing & oiling. To begin with the vehicles will be placed on the flat form and would be washed under showers and then moving parts will be greased and oiled. The air pressure in the wheels of the vehicle will also be checked. 2. Power & Electricity KVA 3.Pollution Control : The pollution would be created due to effluents coming out of the washing chamber and other oils used for which Proper care should be taken for disposal of them. 4. Inspection & quality Control: The customer s satisfaction is the ultimate object of the servicing. In order to achieve it the delivery schedule of the vehicle and quality of the servicing has to be consistent. 6 FINANCIAL ASPECTS : a) LAND AND BUILDING: i) Land : The requirement of land for the proposed unit would be around 2000 Sq. Ft. The land & Building will be on rent TOTAL 10000
4 b) PLANT & MACHINERY Sl.No. Description of machineries/equipment 1 Hydraulic hoist to lift 4 tons, lift height up to 1500 mm with standard accessories. 2 Air compressor, two stage, 12 kg/cm2 (175 psi) with all standard accessories, mounted air receiver tank used to operate hoists, lubricating equipment and tyre inflation, etc. 3 Single gun type car washing machine with tank of 150 litre and discharge 22.6 lpm operating pressure 22 kg/cm2 with standard accessories. KW Qty. Rate (Rs.) Value (Rs.) Pneumatically operated grease pump, pressure ratio 50: HP submersible pump Tyre inflator -Preset Wet and dry vacuum cleaner , TOTAL Installation & 10% TOTAL Office Equipment, Dies & Garage Tools LS Total Investment In Plant & machinery Pre operative security depositsi.e.for Getting Electricity Connection etc c) Total Investment In fixed assets d) WORKING CAPITAL i Personnel S.NO. DESIGNATION No. Salary Total (Rs.) 1 Manager (Self) Skilled Worker Semi skilled worker/ Clerk cum typist Total Additional 15% 6375 Total Expenditure in Salary & Wages ii Raw Material S.No. Particular (Indigenous) Qty Rate Value (Rs.) 1 Oil, Grease etc Cotton Waste & other Consumable items TOTAL 13500
5 iii Utilities Value (Rs.) 1 Power Water LS 1000 iv Other Contingent Expenses TOTAL Postage and stationary Office Consumable stores Publicity & unforeseen Telephone charges Miscellaneous expenses Insurance 1500 TOTAL v Total Recurring Expenditure : S.No. Description Cost 1 Personnel Raw material Utilities Other Contingent Expenses Rent TOTAL vi Total working capital for 3 months : Rs e) Total Capital Investment : i Fixed Capital ii Working Capital for 3 Months Total Capital Investment : Total Capital Investment 981, FINANCIAL ANALYSIS 1 Cost of Production (Per year) : i Total recurring cost : ii Depreciation of machinery and 10% iii Interest on total Capital 12% iv Depreciation of tools and office 15% 7500 Total : 1,349, Total Sales (Per annum) Products Qty. Rate Value (Rs.) i ii Turnover per annum by servicing of 1200 Nos Rs.1000/ Turnover per annum by servicing of 1200 Nos. Rs.750/ TOTAL : 2,100,000
6 3 Net Profit (Per yr.) (Before tax) Total turnover per yr.) -cost of production per yr.) = , Net profit ratio : Net profit 100 = x100 = 36% Turn Over Rate of return : Net profit 100 = x100 = 75% Total Investment BREAK-EVEN POINT; FIXED COST ; 1 40% salary & wages Depreciation on machinery & 10% Depreciation of tools and office 15% Interest on capital 12% % of other contingent expenses Insurance & Rent TOTAL Net Profit (Per yr.) (Before tax) BEP : Fixed Cost 100 = 45% Fixed Cost + Profit 8 Plant & Machinery Suppliers 1 Maharashtra Industries No. A/22, Road No. 9, Behind Passport Office, Wagle Industrial Estate, Thane (W) Tel : ( 8 Lines ) * Fax : info@maha-tech.com 2 PERFECT INTERNATIONAL 4/1/B AMBICA ESTATE, NAGERWEL HANUMAN ROAD, RAKHIAL, AHMEDABAD , GUJARAT, INDIA Tel: / ARO Equipment Pvt. Ltd., L-320 Mahipalpur Extn., NH-9 Near Sethi Petrol Pump, New Delhi AUTOTEST INDIA B-5, DSIDC, INDUSTRIAL COMPLEX, ROHTAK ROAD, NANGLOI, DELHI , INDIA Tel :
7 9 Raw Material - Local Market
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