AUTOMOBILE WIRES 1. INTRODUCTION 2. MARKET POTENTIAL PRODUCT CODE QUALITY AND STANDARDS : IS: MONTH AND YEAR : May, 2014 OF PREPARATION
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1 AUTOMOBILE WIRES PRODUCT CODE : NA QUALITY AND STANDARDS : IS: PRODUCTION CAPACITY : 6,000 Gross per annum MONTH AND YEAR : May, 2014 OF PREPARATION PREPARED BY : Sh. Mohd. Shahid Assistant Director (Mechanical) 1. INTRODUCTION Auto wires are widely used in various controls in two, three & four wheeler vehicles. These are made by standard wire ropes of desired standard wire gauge in different diameter or No. of wires, depending upon its end use like brake wire, clutch wire, gear wire, accelerator wire, etc. The wire used for this purpose is drawn G.I. wire, which are as per need is stranded and cut in desired length. At one end of the wire, zinc stopper is fixed by die casting process and other end is sealed with molten zinc to avoid spreading of standard wires. These wires enable the driver to control the vehicles functions and have very wide market all over the country. There are various types of machines and equipment available for manufacturing these wires. This industry can be setup in all major cities and especially where automobiles manufacturing units are established & functioning. 2. MARKET POTENTIAL Auto wires have a very wide and never ending replacement market, as various control wires have to be replaced in any scooter, motorcycle, auto rickshaw & Cars. These are always required by the mechanics, workshops and service station. The product has different gauge wire for different end user and it is sold in gross packing. One wire meant for specific control is packed in either printed poly bags / paper bags and is marketed through the auto part dealers / shops or supply to automobile manufacturing units
2 3. BASIS AND PRESUMPTIONS Automobile Wires The project report has been prepared keeping in view the following basis and presumptions while calculating the cost of project and cost of production: i. The unit will run 8 hours per day (Single Shift) for 300 working days in a year. ii. iii. iv. The unit will manufacture all types of central wires/ stranded wire. Poly bags printed in four colours on flexo-printing machine will be used for packing the wire and one such bag will contain only one wire in it. Rates in respect of machines and equipments are based upon the rates quoted by Manufacturers of New Delhi. v. Rates of raw material and other inputs are based upon local market rates. vi. The unit will be running on single phase power motors. 4. IMPLEMENTATION SCHEDULE The Implementation schedule for the project will be as under: i. Preparation of project report after setting current rates for machines and raw material. ii. iii. iv. Selection of land, map approval and construction of building map. Provisional registration / obtain EM-I Power connection. v. NOC from Pollution Control Board. vi. vii. viii. Arrangement of Finance and placement of orders for Machines. Procurement and installation of machines. Procurement of raw material. 5. TECHNICAL ASPECTS 5.1. Production details and Process of Manufacture Galvanized steel wire of required wire gauges are procured and loaded on wire stand of stranding machine. Now with the help of wire twisting /stranding machine, Nos. of wires are converted into single stranded wire and continuous length stranded wire is made. The number of wire and gauge of wire depends upon the quality and end use of auto wire to be made. The stranded wire thus made is cut with the help of wire cutting machine and one end of this wire is sharpened/grinded of strands. At another end of stranded wire, one zinc stopper is fixed with help of a die-casting Machine. The wire thus made is reeled and packed in printed poly bags for marketing
3 Mechanical Division Process Flow Chart G. I. Wires Stranding Cutting Pieces End Finishing Stopper Casting Inspection Packing Store/Dispatch 5.2. Quality Specification Bureau of Indian Standards has laid down the following standards for auto control cables IS Production Capacity Quantity: 6,000 Gross 5.4. Motive Power 5 HP 5.5. Pollution Control As the production activities are very simple in nature, no pollution is involved but clearance from pollution control board is required. However, white melting zinc, provision of exhaust gases is made through chimney and exhaust muffler Energy Conservation Melting of zinc involves use of diesel furnace. The selection of burner and furnace design should be obtained to get maximum heat energy from the fuel used
4 -145- Automobile Wires 6. FINANCIAL ASPECT 6.1. Fixed Capital Land & Building: Land area of 1500 sq. ft. and Covered area of 700 sq. ft. on rent Machinery and Equipments S. No. Particulars/Specification Nos. Amount (Rs.) 1. Wire twisting machine 12 bobbins with 2 80,000/- 0.5 H.P. electric motor, starter 2. Air compressor machine with blower, burner 1 60,000/- and furnace 3. Die cutting machine, with blower, burner 1 50,000/- and furnace 4. Wire cutting machine, poly bag sealing - 40,000/- machine 5. Casting dies set, bench grinder and tools. - 30,000/- Total 2,60,000/- 6. Transportation and installation approx. 26,000/- 7. Office Equipment & Furniture 50,000/- Grand Total Rs. 3,36,000/ Working Capital (per month) Staff and Labour S.No. Particulars Nos. Salary/Wages 1. Production Supervisor 1 25,000/- 2. Skilled Worker 4 40,000/- 3. Unskilled worker / Chokidar / MTS 3 22,500/- 4. Office clerk 1 12,500/- Total 1,00,000/ Raw Material S.No. Particulars and rate Quantity Amount (Rs.) 1. G.I. wire 26/28 Rs 50/- per kg 4200 kg 2,10,000/- 2. Rs 150/- per kg 130 kg 19,500/- 3. Printed plastic Rs 250/- per kg 100 kg 25,000/- Total 2,54,500/ Utilities (per month) S.No. Particulars Amount (Rs.) 1. Electricity Charges 10,000/- 2. Water Charges 2,000/- 3. Fuel for the Furnace 15,000/- Total 27,000/-
5 Mechanical Division Other Contingent Expenses S.No. Particulars Amount (Rs.) 1. Maintenance and Repairs 5000/- 2. Postage, Stationery and Phone 4000/- 3. Travelling and Conveyance 5000/- 4. Transport & Freight 10000/- 5. Advertisement and Publicity 6000/- 6. Insurance & Miscellaneous 7500/- 7. Rent of the Building 28,000/- Total 65,500/ Total Recurring Expenditure S.No. Particulars Per Month (Rs.) Per Year (Rs.) 1. Raw Materials 2,54,500/- 30,54,000/- 2. Salary & Wages 1,00,000/- 12,00,000/- 3. Utilities 27,000/- 3,24,000/- 4. Other Expenditure 65,500/- 7,86,000/- Total 4,47,000/- 53,64,000/- Total Working Capital for 3 months Rs. 13,41,000/ Total Capital Investment Total Fixed Capital Rs. 3,36,000/- Total Working Capital (for 3 months) Rs. 13,41,000/- Total Rs. 16,77,000/- 7. FINANCIAL ANALYSIS 7.1. Cost of Production (per annum) S.No. Particulars Amount 1. Total Cost of recurring expenditures 53,64,000/- 2. Depreciation on 20% 67,200/- 3. Interest on Capital 18% 3,01,860/ Turnover (per annum) Total 57,33,060/- Particulars and Rates Qty. Amount (Rs.) By Sale of auto Rs 1200/- per gross Gross. 72,00,000/- Total 72,00,000/
6 Automobile Wires 7.3. Net Profit (per annum) Turnover cost of production Rs. 72,00,000 57,33,060 Rs. 14,66,940/ Net Profit Ratio Net profit per year Turnover per year 14,66,940 72,00, % 7.5. Rate of Return Net profit per year Total Capital Investment 14,66,940 16,77, % 7.6. Break-even Point Fixed Cost Fixed Cost + Net Profit 14,19,060 14,19, ,66, % -147-
7 Mechanical Division Name and Addresses of the Machinery and Equipments Suppliers 1. Garg Engineering Works No. 1/429/8, Gali No. 1 Friends Colony Industrial Area Shahdara, Delhi Phone : Akash Industries Plot No. 915, Gali No. 5 Krishna Vihar Industrial Area Sewa Dham Mandoli Road, Ghaziabad Phone: Devindra Wires & Cables Machinery Pvt. Ltd. H-60, Bali Nagar New Delhi Phone: Name and Addresses of Raw Material Suppliers 1. Bansal Wire Industries Pvt. Ltd. F-3, Main Road, Block F, Shastri Nagar New Delhi Phone : Kansal Wirenettings Plot No. 2, Khazani Nagar Johripur, Delhi Phone: Jai Mata Metals C-4/9, Main 100 Ft. Road Kabir Nagar, Shahdara, Delhi Phone: Aseem Global Ltd. 5476, South Basti Harphool Singh Sadar Bazar, New Delhi Phone:
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