Pad lock industry dinesh nikam
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- 1. PRESENTED BY : DINESH NIKAM ROLL NO. : MT14IND013 DEPARTMENT
: MECHANICAL ENGINEERING BRANCH : INDUSTRIAL
ENGINEERING(2014-2015)
- 2. TABLE OF CONTENTS 1. Introduction 2. Basis and presumptions
3. Raw material study 4. Raw material suppliers 5. Demand study 6.
Technical study 7. Quality control and standards 8. Location study
9. Implementation schedule 10. Financial study 11. Source of
finance and taxation 12. Financial analysis 13. Machinery &
equipment suppliers
- 3. 1. INTRODUCTION Lock manufacturing industry is one of the
most important, popular and employment oriented . Small scale
Industry comparatively with a small size of investment. The Return
on Investment in such industries is higher. Locks are used for
locking of doors, shutters of houses/shops, grill gates, trunks,
shutters of godowns, suitcases, wooden cupboards, lockers etc.
- 4. 2. BASIS AND PRESUMPTIONS The production capacity of the
unit has been worked out on the basis of single shift of 8 hours a
day for 300 working days a year ( i.e.25 days a month ). The unit
is expected to work at 70% efficiency of installed capacity with
yield rate of 95%. Wages for labour, etc. have been considered as
per the prevailing market rates in accordance with the Minimum
Wages Act. The unit is assumed to run in a rented/leased
building.
- 5. The cost of machinery and equipment's have been taken as per
the rates quoted by manufacturers / suppliers. The cost of raw
material and other inputs are based on current prices prevailing in
local market. Interest rate for fixed and working capital
investment have been calculated on an average rate of 16%.
- 6. 3. RAW MATERIAL STUDY Padlock consists of the following main
components: COMPONENT MATERIAL U SHAPE ROD BRASS ROUND ROD BRASS
PINS BRASS SHACKLE STEEL KEY BLANK BRASS BOLT BRASS
- 7. 4. RAW MATERIAL SUPPLIER Brass rod Aluminium World: No.
4/6/59-60, Opposite Hari Masjid, Old Mondha Road , Aurangabad -
431001, Maharashtra Key blank Shuban International Moti Bhuvan,
Nagar Das Cross Road, Andheri East, Mumbai - 400069,
Maharashtra
- 8. Shackle Rajguru Steel Industries No. 92, Kika Street,
Gulalwadi, Mumbai - 400004, Maharashtra Brass pin and bolt B. M.
Engineering A-101, Paras Nagar, ' A' Building, Navghar Road, Near
Sneha Hospital Lane Bhayander East, Mumbai - 401105,
Maharashtra
- 9. 5. DEMAND STUDY Open market and daily need product. Hence,
there is Good scope for this product. Major customers :
Institutional and commercial market: Institutional and commercial
customers such as universities, hospitals, airports and shopping
malls. Small and medium-sized customers: Such as stores and
offices. Consumer market : Door and window manufacturers or
specialized distribution channels.
- 10. 6. TECHNICAL STUDY Padlock is an old product in the market.
Over the years, there are players who have introduced similar
products. There arises a need to offer additional benefits to the
customer at the same price in order to compete in the market. In
existing padlock the key can used only in one direction. The
modified key gives freedom to the customer of using the key in any
direction.
- 11. The modified padlock with duo technology and reversible key
at the same price makes it an Unique Selling Proposition (USP). The
disadvantage of pin cylinder technology is that, its key can be
copied easily. Ultra Duo technology (dimple technology) is more
secured then pin lever technology because its key cannot be easily
duplicated.
- 12. SR. NO SPECIFICATIONS PIN CYLINDER TECHNOLOGY ULTRA DUO
TECHNOLOGY 1. KEY DESIGN Indentations on the edge Dimples on the
surface 2. REVERSABILITY OF KEY Key can be used only in one
direction Key is reversible 3. KEY DUPLICATION Easy to duplicate
Difficult to duplicate
- 13. TECHNICAL DATA OF PADLCOK PADLOCK SIZE APPLICATION 40 MM
Suitcases, Wooden Cupboards, Trunks, Carry Bag, Lockers, Cabinets
Etc. 50 MM Main Door, Suitcases, Wooden Cupboards, Trunks, Carry
Bag, cabinets, Etc. 60 MM Main Door, Grill Gates, Trunks, Shutters
Of Godowns, Shop Etc. 70MM Main Door, Grill Gates, Trunks, Shutters
Of Godowns, Shop Etc.
- 14. PRODUCTION CAPACITY Production Capacity (Per annum) =
production rate per hour * Yield rate * * Hours per shift * No. of
shift per day * No. of working days per month * No. of month per
annum = 32 * 0.95 * 8 * 1* 25 * 12 = 72,960 locks per annum
- 15. 7. QUALITY CONTROL AND STANDARDS Locks are to be
manufactured as per IS 4230 :1967. Since the locks are directly
related to the safety of household the manufacturer must ensure the
following in addition to IS specification: All the components must
be in accordance with the dimensional accuracy. Manufacturing
defects in no case be allowed. The raw material must conform to the
specifications. Strength of cylinder and shackle must be ensured
and it should not lead to failure/break on jerks. The components,
particularly keys should be non interchangeable. Smooth function of
the lock must be ensured.
- 16. 8. LOCATION STUDY
- 17. AVAILABILITY OF LAND Rented 1200 sq. feet land is available
in the industrial region of Aurangabad. APPROACH TO SITE Good
network of Rail and Road transport. Near the railway station.
TRANSPORTATION Rented vehicles for transportation and supply are
easily available near the working site. WATER Personal Bore water
of land Owner is available for drinking water and daily needs.
Municipal Corporation taps are also available. POWER Electricity is
easily available with 24 hrs. OTHER FACILITIES The amenities like
Post office, Banks, Police station, Petrol Pumps, Canteen, Bus
services etc. are available in this area.
- 18. 9. IMPLEMENTATION SCHEDULE SR NO. ACTIVITY ESTIATED PERIOD
1 Preparation of project report 0 1 Month 2 Registration &
Other formalities 0 1 Month 3 Sanction of loan by financial
institution 1 5 Month 4 Placement of Order for Plant &
Machinery 5 7 Month 5 Power & Water Connection 7 8 Month 6
Installation of Plant & Machinery 8 9 Month 7 Procurement of
Raw material & Trial Run 9 10 Month 8 Commercial Production
10th Month onwards
- 19. 10. FINANCIAL STUDY
- 20. SR No. Description Qty. Amount (in Rs.) 1 Vertical machine
center machine 1 No. 31,00,000/- 2 Hydraulic Automatic wire rod
straightening and cutting machine 1 No. 1,50,000/- 3 Pin cylinder
drilling machine 1 No. 1,00,000/- 4 Key indentation machine -
2,00,000/- 5 Bench drilling machine - 20,000/- 6 Weighing Machine -
20,000/- 7 Pedestal Grinder 20,000/- 8 Material Handling
equipment's - 20,000/- 9 Testing equipment's - 30,000/- 10
Pollution Control Equipment (Exhaust) 1 No. 20,000/- TOTAL :
37,05,000 A. Fixed capital : I. Machinery & Equipment
- 21. II. Pre-Operative Expenses : Rs 70,000/ III. Electrical and
Mechanical installation @ 10% of Plant and Machinary cost : Rs
3,70,500/ IV. Office/Lab. Furniture & Equipments : Rs
1,00,000/- Total Fixed Capital = I+II+III+IV= 42,45,500/-
- 22. B. WORKING CAPITAL (PER MONTH): SR NO. DESIGANATION NO.
SALARY TOTAL (RS.) 1 Manager 1 22000 22000 2
Engineer-cum-supervisor 2 18000 36000 3 Accountant 1 10000 10000 4
Clerk-cum-Typist 1 8000 8000 5 Skilled Worker 3 10000 30000 6
Semi-skilled worker 4 8000 32000 7 Unskilled worker 3 6000 18000 8
Peon-cum-Watchmen 2 5000 10000 Total : 1,66,000 Add Perquisites @
15% of salary : 1,90,900 I. Salary & Wages :
- 23. II. Raw Materials : SR NO. RAW/INPUT MATERIAL QTY. RATE
AMOUNT In RS. 1 U shape rod 380 kg 250 Rs/kg 95000 2 Round shape
rod 200 kg 220 Rs/kg 44000 3 Shackle 12000 8 Rs/shackle 96000 4
Bolt 12000 5 Rs/bolt 60000 5 Pin 350 kg 120Rs/kg 42000 TOTAL :
3,37,000
- 24. SR NO. UTILITIES AMOUNT (Rs) 1 Power (5000 KWH @ Rs. 8.00
per KWH) 40,000/- 2 Water (200 K. ltrs. @ Rs. 20/- per K. ltrs)
4000/- 3 Fuel (200 ltrs. @ RS. 70/- per k.ltrs) 14000/- TOTAL:
58,000/- III. Utilities : SR NO. Description Amount (Rs) 1 Rent
1,00,000/- 2 Telephone 15,000/- 3 Consumable Stores 5,000/- 4
Transport charges 25,000/- 5 Advertisement and publicity 15,000/- 6
Postage and stationery 7,000/- 8 Repairs and maintenance 22,000/-
TOTAL: 1,89,000/- IV. Other Contingent Expenses :
- 25. Total Working Capital, i.e. Recurring Expenditure (For 1
Month) = 7,74,900/- Total Working Capital, i.e. Recurring
Expenditure (For 3 Month) = 23,24,700/- SR NO. Description Amount
(Rs) 1. Personnel 1,90,900/- 2. Raw Materials 3,37,000/- 3.
Utilities 58,000/- 4. Other Contingent Expenses 1,89,000/- Total:
7,74,900/- Working Capital / Total Recurring Expenditure
- 26. TOTAL CAPITAL INVESTMENT SR NO. Description Amount (Rs) I.
Fixed Capital 42,45,000/- II. Working Capital for 3 months
23,24,700/- Total: 65,70,200/- Total Capital Investment (Fixed +
Working) = 65,70,200/-
- 27. Bank Name- SBI Bank Principal amount Rs. 53,00,000 /- Rate
of interest 16 % p.a. 11. SOURCE OF FINANCE
- 28. 1. Corporate Tax in India : = 30% Total Income = 30% of
Gross Profit = 0.30 * 50,99,468 = 15,29,840/- INR 2. DDT( Director
Dividend Tax) = 15% (Gross Profit/Anum Corporate Tax) = 15%
(50,99,468 15,29840) = 15% (35,69,628)/- = 5,35,444/- Total Tax
payable = 15,29,840 + 5,35,444 = 20,65,284/- TAXATION
- 29. SR NO. Description Amount (Rs) 1 Total recurring
expenditure 92,98,800 2 Depreciation on machinery & equipment @
10% 3,70,500 3 Depreciation on office equipment & furniture @
20% 20,000 4 Interest on total capital investment @ 16% 10,51,232
TOTAL : 1,07,40,532 A. Cost of production per annum : 12. Financial
Analysis
- 30. C. Gross Profit (Per annum) : Gross Profit (Per annum) = B.
Turnover : Quantity(Numbers) Price /unit Total (Rs) 72,000 220/-
1,58,40,000/- Total turn over - (Per annum) Total cost of
production (Per annum) Gross Profit (Per annum) = 3,33,45,000
1,07,40,532 = 50,99,468/-
- 31. D. Net Profit: Net profit = Gross profit Tax payable =
50,99,468 20,65,284 = 30,34,184/-
- 32. PROFIT RATIO ON SALES (Per Annum): RATE OF RETURN (Per
Annum): Profit/annum X 100 Turnover/Annum 30,34,184X 100
1,58,40,000 19.15 % Net Profit/annum X 100 Total Capital Investment
30,34,184 X 100 65,70,200 46.18 %
- 33. BREAK EVEN POINT (B.E.P) FIXED COST : SR NO. Description
AMOUNT ( RS.) 1 Depreciation on machines and equipment tools,
fixtures and office equipment's 14,82,000 2 Rent (Annual) 12,00,000
3 Interest on total investment 10,51,232 4 Insurance 10,000 5 40 %
of Salary & Wages 76,360 6 40 % of other contingent expenses
(excluding rent & insurance) 75,600 TOTAL : 38,95,192
- 34. Production cost per annum: Rs. 1,07,40,532 Turnover : Rs.
1,58,40,000 Quantity produce per annum: 72000 Fixed cost: Rs.
38,95,192 Fixed cost+ production cost per unit*x=sales cost per
unit* x BEP : Volume(x) : 18994 locks Pay back period : 85 days
Sales : Rs. 41,78,680 (sales cost per unit*x) BREAK EVEN POINT
(B.E.P)
- 35. 13. MACHINERY & EQUIPMENT SUPPLIERS Sahil Technocrats:
Plot No 382,Hingne-khurd,Sinhgad Rd, Pune, Maharashtra India. Sree
Murugan Kerala Stores: Hadapsar, Pune, Maharashtra India. Jay
Chamunda Maa Enterprises: Unit No. 009,Tirupati Udyog, I.b. Patel
Road, Opp. H.p. Petrol Pump, Goregao (east), Mumbai, Maharashtra
India.
- 36. Salicon: 396 Sicof 69 M.i.d.c. Satpur., Nashik, Maharashtra
- 422007, India. Ganesh World Machinery: B.S.-1, Jivdani Industrial
Estate, K.N. Dhumalnagar, Valiv, Vasai East, Mumbai, Maharashtra -
402201, India
- 37. THANK YOU