Mechanical - MSME-DI Nagpur

1. INTRODUCTION.UPDATED PROJECT PROFILECOLD STORAGE UNITIndia is the largest producer of fruits and second largest producer ofvegetables in the world. In spite of that per capita availability of fruits and vegetablesis quite low because of post harvest losses which account for about 25% to 30% ofproduction. Besides, quality of a sizable quantity of produce also deteriorates by thetime it reaches the consumer. This is mainly because of perishable nature of theproduce which requires a cold chain arrangement to maintain the quality and extendthe self-life if consumption is not meant immediately after harvest. In the absence of acold storage and related cold chain facilities, the farmers are being forced to sell theirproduce immediately after harvest which results in low price realization. Sometimefarmers do not even get their harvesting and transportation costs what to talk of thecost of production or profit. As a result, our production is not getting stabilized andthe farmers after burning fingers in one crop switch over to another crop in thesubsequent year and the vicious cycle continues. Our farmers continue to remain pooreven though they take risk of cultivating high value fruits and vegetable crops yearafter year. A cold storage facility accessible to them will go a long way in removingthe risk of distress sale to ensure better returns. This project profile endeavors toprovide information on various broad technical and financial aspects of a cold storageunit to enable the financing banks and entrepreneurs in formulation andimplementation such projects.2. MARKET POTENTIAL.The estimated annual production of fruits and vegetables in the countryis about 130 million tonnes. This accounts for 18% of our agricultural output. Due todiverse agro climatic conditions and better availability of package of practices, theproduction is gradually rising. Although, there is a vast scope for increasing theproduction, the lack of cold storage and cold chain facilities are becoming majorbottlenecks in tapping the potential. The cold storage facilities now available are mostlyfor a single commodity like potato, orange, apple, grapes, flowers, etc. which results inpoor capacity utilization.Present availability of cold storage capacity is only 130.5 lakh tonnes.Although 90% of these units are made to store only potato even then it does not meet therequirement of the single crop, the production of which is about 300 lakh tones perannum.3. BASIS AND PREASSUMPTIONS.Assumptions for working out economics of a 5000 MT capacity potato cold storage1. 70% of the capacity is rented out and rest 30% capacity is used to store potatoowned by the promoter(s).2. Rental charges per season per MT of potato are Rs. 1800/-.3. Marketing margin on own potato considered at Rs. 6500/- per MT.4. Electricity and other utilities expenses at Rs. 410.4/- per MT per annum.5. Insurance charges for the potato considered as Rs. 40/- per MT per season.6. Margin money considered at 25% of the financial outlay.7. Interest on term loan considered at 15% per annum.2

8. Even though the life of the cold storage will be much more, the life has beenconsidered as 15 years for working out internal rate of return.9. Depreciation rate of 5% and 9% has been considered for civil structures and plant& respectively.4. IMPLEMENTATION SCHEDULE.1. Provisional registration with the Director of industries (DIC) one week.2. Site selection, Land development, Power connection, Water Connection &Construction of Building 12 months.3. Purchasing machinery, equipments and employing personnel 02 month.4. Installation of machinery 02 months5. Testing installed machinery & Marketing 01 month.The proposed unit can be set up in 18 Months.5. TECHNICAL ASPECTS.5.1 Process of Service / Manufacturing.After harvesting potato transport it to cold storage premises then pre cool it in precoolerremove damaged potatoes then pack in certain quantity like 50Kg, 100 Kg bags, numberbags and store in cold storage racks. Maintain constant cooling whenever potato /products are in storage, frequent inspection of stored product is required. Transport towholesale market whenever required.5.2 Quality Specifications.Constant continuous cooling, security of product, perfect service is essential.5.3 Service Capacity per Season /Annum.Quantity: 5000 MT of PotatoesValue : 1,60,50,000 Rs5.4 Motive Power. Three phase, 75 HP (For Vapor Compression Refrigeration System)6. TOTAL CAPITAL INVESTMENT.Sr.DescriptionValue Rs.No.1. Fixed Capital 29000000.002. Working Capital (3 times of WC/ Month) 752856.00Total Cost 2,97,52,856.00Say3,00,00,0007. MEANS OF FINANCE. Rs.1. Promoters Contribution (25 % of Total Cost) 75.00,000.002. Bank Loan (Total Cost - Promoters Contribution ) 2,25,00,000.008. FINANCIAL ASPECTS.8.1 FIXED CAPITAL.Sr.No.DescriptionCost / MT(Rs)Value(Rs)1. Civil cost 3200.00 16000000.002. Insulation cost 900.00 4500000.003. Machinery & Equipment cost 1500.00 75,00,000.004. Miscellaneous cost 200.00 10,00,000.00Total Fixed Cost 2,90,00,000.003

8.2 WORKING CAPITAL.8.2.1 Establishment Expenses per Month & Year.Sr.No.Designation Persons Salary(Rs / Month)Value(Rs/Year)1. Manager 1 15000.00 180,000.002. Supervisor 1 10000.00 120,000.003. Skilled worker 2 6000.00 144,000.004. Labors/ helpers for loading, unloading 5 3500.00 210,000.00product & other related workTotal Cost for Staff & Labor 34500.00 6,54,000.008.2.2 Maintenance & Repair Expenses per Month & Year.Sr.No.DescriptionQuantityPer MonthM&R Expenses(Rs/Month)Value(Rs/Year)1. Refrigerant (NH3 ) 30 Kg 7084.00 85000.002. Lubricants 10 Lit. 2000.00 24000.003. Fuel 06 Lit. 500.00 6000.004. Preventive maintenance cost 6250.00 75000.005. Parts to Replace 6250.00 75000.006. Repairing expenses 4167.00 50000.00Total M & R Expenses 26251.00 3,15,000.008.2.3 Utilities per Month & Year.Sr.No.Description Units Bill(Rs / Month)Value(Rs/Year)1. Power (125 KW @ 5 ) 34000 170000.00 2040000.002. Water 1000.00 12000.00Total Utilities 171,000.00 20,52,000.008.2.4 Other Expenses per Month & Year.Sr.No.DescriptionExpenses(Rs / Month)Value(Rs/Year)1. Insurance charges of stored product / potato 16667.00 200000.002. Postage & Stationary 500.00 6000.003. Conveyance and Transport 1000.00 12000.004. Advertisement & Publicity834.00 10000.00(Stickers , pamphlets & Cards )5. Other Unforeseen Expenses 200.00 2400.00Total other Expenses 19201.00 230400.008.2.5 Total Working Capital Per Month.Sr.DescriptionValue RsNo.1. Total Establishment Expenses per Month 34500.002. Total Maintenance & Repair Expenses per Month 26251.003. Total Utility (Power & Water Expenses) per Month 171000.004. Total Other (Insurance, Marketing etc)Expenses Per Month 19201.00Total Working Capital Per Month 2,50,952.004

9. COST OF PRODUCTION / SERVICE PER ANNUM.Sr.DescriptionValue RsNo.1. Total Working Capital Per Annum 30,11,424.002. Depreciation on Machinery & Equipment 6,75,000.003. Interest on total capital investment (FC+WC) 44,62,928.00Total Cost of Servicing Per Annum 81,49,352.0010. TURNOVER PER YEAR.Sr.No.DescriptionQuantity(MT)Rate(Rs /MT)Value(Rs)1. 70 % capacity of cold storage is rented 3500 1800.00 63,00,000.002. 30% capacity of cold storage is used to 1500 6500.00 9750000.00store potato owned by promoter(s)Total revenue per year 1,60,50,000.0011. FIXED COST PER YEAR.Sr.DescriptionValue RsNo1. Depreciation of Machinery, equipment & Insulation10,80,000.00(At the rate 9% / Year in average)2. Depreciation of civil structure (At the rate 5% / Year ) 8,00,000.003. Interest 44,62,928.004. 40 % of Salaries & Wages 2,61,6000.005. 40 % of Other Expenses (Utilities + OE) 9,12,960.00Total Fixed Cost per 75,17,488.00year12. PROFIT ANALYSIS.Profit : Revenue per year-Total Cost of Servicing Per Annum : 79,00,648.00 RsIncome Tax on Profit @ 30%: 23,70,194.00 RsNet Profit (PAT): 55,30,453.00 Rs% of Profit on Sale : Net Profit / Sale × 100 : 34.46 %% of Return on Investment : Net Profit / (FC + WC) × 100 : 17.28 %13. MACHINERY SUPPLIERS.1. RINAC INDIA Ltd., No.5, Saraswati Niwas,Main Channal Road, SaraswathipuramUlsoor, Banglore-560008 (Karnataka) PH- 080-411329292. AIRTECH ENGINEERS, B-93, Okhala Industrial Area, Phase II, New Delhi-110020, PH- 011-263857113. NEER ENTERPRISES,232/2,Mangal Nagar, Opp. Saraswati Vidya Mandir, Near Shastri Nagar, N.H. No. 8Rakhial, Ahmedabad-380023, Gujarat, India. Phone : +91-79-22910062,22910326 Fax : +91-79-22910393 E-Mail: info@neerenterprises.com Ctd…...5

14. DOS AND DON'TSDos1 Suitability of site with proper elevation,drainage and linkages by road andother communications must be ensured.2 Land should be converted to nonagricultural category.3 Soil should be tested for its load bearingstrength and matching rack designshould be adopted.4 Necessary permission from localauthorities for construction of coldstorage should be obtained.5 Capacity of the plant and its roomtemperature should be matched to theproduct to be stored and market size.6 Selection of technology and machineryshould be for power efficiency, lowinvestment and maintenance cost.7 Plant operation may be planned in amanner to not exceed an average 12hours operation a day.8 Refrigeration system should be properlypressure tested and vacuum tested forsafety.9 Soft water should be used for plantoperation.10 Trained personnel should be employedfor operating the plant and maintainingdesired room conditions.11 Proper standby equipment likecompressor with motor and watercirculation pump should be provided.12 Assured electricity supply matching tothe electrical power requirement shouldbe provided. In case of power failures,the supply should be ensured by DG setmatching to the essential powerrequirement of the unit.13 Proper safety provisions like fireextinguishers and safety alarms shouldbe provided.14 Proper insurance cover should be takenfor building, plant and machinery andstored stocks to take care of unforeseenrisk.Don'tsSite in a low lying area with poor roadand other communication linkagesmust be avoided.Agricultural land should not be used forconstruction of cold storage withoutconverting it to non agriculturalcategory.Do not avoid soil load bearing test andproper rack design.Don't avoid taking permissions fromlocal authorities for constructions.Don't select the capacity of the coldstorage arbitrarily.Costly and energy intensive technologyshould be avoided.Plant operation for more than 12 hoursa day should be avoided.Proper pressure testing and vacuumtesting of the refrigeration systemshould not be over looked.Don't use hard water without softeningit.Untrained and inexperiencedpersonnel should be avoided for criticalplant operations.Standby provisions for criticalequipment should not be avoided tosave on cost.Don't compromise on DG set to ensureassured power supply.Don't compromise on safety aspectsfor risk free operation of the unit.Don't avoid insurance cover to save onoperational costs.6

1. Introduction:UPDATED PROJECT PROFILEExplosive Van Body BuildingExplosive van carries explosives , which were mounted on different vehicleschassis such as on Ashok layland, TATA or Swaraj Mazda. These van are havingdifferent carrying capacity such as 1 MT, 3 MT, 5MT, 10 MT & 15 MT. These arefabricated as per Govt. of India, Department of Explosive rules. This project profile isprepared for caring Class-2 type of explosive.Explosive Rules, 1983Explosives Rules deal with condensed explosives like high explosives (dynamite,detonators etc. ) fireworks, low explosives ( safety fuse etc. ) The type of explosiveshave been catogarised as category X,Y, Z, and ZZ and for various purposes, eitherlicence or approval is required.Licence is required for manufacture, storage, ( possession ) for sale and/or use,transport, import, export of explosives, display of fireworks or for special purpose notcovered in the Rules. The details regarding Shot Firer‟s permit have been stated in„Licensed Premises‟.Approval is required for manufacture of portable Magazine, Explosives CarryingBoxes, Authorisation of Explosives, Issue of Foreman Certificate, Acetylene Generatorand BMD system.Form no Purpose Licensing AuthorityForm 26 To Transport Explosive Controller of Explosives2. Market Potential:There are numbers of ordnance factories, Explosives manufacturing unitsfire crackers manufacturing units. The explosives vans are essential explosive materialhandling vehicles for transportation of explosives from one destination to other. Mostof the units they hire the vans for transport. Therefore the market potential of explosivevan body building and repair is highly demanded.8

(a)MANUFACTURING PROCESS:i) The following point must be noted while body building of Explosive van:1. Disconnect all connection of battery and alternator before electric welding workon chasses / body.2. Exhaust silencer is to be install in between front wheel & back compartmentbody, spark arrester is to be fitted at the end of silencer. For short circuitprecaution earthing chain and cutout switch is to be installed.3. There should be gap between driver‟s cabin and back storage compartment.4. The inner wall of compartment is to be lined by aluminum and fabricated by brassscrew.FLOW CHART OF BODY BUILDING OF EXPLOSIVE VANPurchase of Raw Material likeAluminum sheet, wood, angles,pipes & hardware itemsBending of pipes cutting ofwoodWelding, Riveting andfabricationErection & Fabrication ofpipes, packing woodenplanks and bolts.Completion and paintingSent for passing to RTO andExplosive Dept.Delivery to customer(b)QUALITY CONRTOL AND STANDARDS:The fabrication of Explosives van cabin/ body construction should followedwith the specification under schedule to Explosives Rule 1983.6. Production Capacity :It is proposed to build body of 24 Explosives vans of capacity 10 MT per annumi.e. two vans per month10

(iii)WORKING CAPITAL (PER MONTH)A. STAFF AND LABOURSr. No. Designation No. Salary Total (Rs.)1. Manager 1 10000 100002. Accountant 1 6000 60003. Clerk cum storekeeper 1 5000 50004. Welder 1 4000 40005. Fitter 2 4000 80006. Helpers 1 3000 30007. Peon/chowkidar 1 3000 3000Perquisites @ 15% of salaries 5850Total: 44850Say 45000B. RAW MATERIAL (PER MONTH):Particular Ind/Imp. Qty. RateRsInd. 400 Kgs 245/-per KgsAluminum sheet22SWG to 20 SWG4‟X6‟=24 sq ft/ sheet. Onesheet = 7 KG approx.Rolled steel angle35X35X5 mm, 2.6 Kgs/mtrSquare pipe40X40 mm, 5mmthickness, 18‟ eachChannel40X40X40 mm, 5mmthickness,Brass sheet, brass screw,paint, spark arrester,cutout switches, earthingchain, wooden planks.Ind. 400 Kgs 45/- perkgsInd. 850 kgs 48/- perkgsInd. 100 kgs 48/- perkgsValue(Rs.)980001800040800480060000Total: 221600Say 225000C. UTILITIES:Power 30 HP L.S. 15000Water L.S. 500---------Total 15500----------12

D. OTHER EXPENSES (PER MONTH):Rent 15000Postage, stationery telephone etc. 1500Insurance 1000Transport charges 3000Repair & maintenance 2000Advertisement, sales expenses etc. 500Miscellaneous expenses 2000---------------Total: 25000----------------E. WORKING CAPITAL (PER MONTH):Working capital = A+B +C +D= 45000+225000+15500+25000= 310500/-(iv) TOTAL CAPITAL INVESTMENT :Fixed Capital Rs. 426000Pre operative expenses Rs. 25000Working capital for 3 months Rs. 931500---------------------Total: Rs. 13,82,500---------------------(v)FINANCIAL ANALYSIS:1. COST OF PRODUCTION (PER YEAR):(a) Total recurring cost per year 37,26,000(b) Dep. on machinery and equip.@ 10% 42,600(c) Interest on total capital investment @15% 2,07,375` -----------------Total cost of production: 39,75.975---------------Say 40,00,0002. SALES/TURNOVER (PER YEAR):Item Qty Rate (Rs.) Value (Rs.)Cost of Explosive 24 @ 2.25 lakhs 5400000van body buildingTotal 5400000In addition to explosive van body building repairing work also undertaken as per availability of time & job which can be charged as per job requirement.13

3. NET PROFIT (per year):Net Profit .= Sales - Cost of Production= 54,00,000 – 40,00,000= 14,00,0004. NET PROFIT RATIO:Net profit= ---------- x 100Sales14,00,000= -------------- x 100 = 25.92 %54000005. RATE OF RETURN:Net profit= ----------------------- x 100Total investment14,00,000= ------------------ x 100 = 35%40,00,0006. BREAK EVEN ANALYSIS:Fixed cost1 Depreciation on machinery & eqpt 426002 Insurance 100003 Interest on total investment 2,07,3754 40% of annual salary and wages 2,16,0005 40% of utilities 744006 40% of other contingent expenditures 1,20,000Total Fixed cost 6,70,375Fixed costBEP= ------------------------------- x 100(Fixed cost + Net profit)670375BEP= ------------------------- x 100670375 + 1400000BEP= 32.38%14

9. Names And Addresses Of Machine Suppliers:1. M/s. Essential Machine Tools Pvt. Ltd., 5, Nyaya Murti G. N. Vaidya road,Bank Street, P.O. Box No. 2, Behind state bank fort,Mumbai –400001.2. M/s. Machine Tools & Equipments, 81, Narayan Dhuru Street,Mumbai – 400003.3. M/s Machine Tools Traders, 25,Ganesh Chander Avenue,Kolkata – 700 013.10. Names And Addresses Of Raw Material Suppleirs:1. M/s. Vinayaka Metal Industries, 283, Tawkal Lay-out, Behind SheelaComplex, wadi, Nagpur- 4400232. M/s. Metals & Machinery Corporation, 130, Mahalaxmi Niwas,Opp.Mayo Hospital, Central Avenue, Nagpur – 440 0183. M/s. B. N. Enterprises, B-107, MIDC Indl area, Butibori,Nagpur – 441 10815

PROJECT PROFILEALUMINIUM SEAL FOR LPG CYLINDERProduct Code : 335902006Quality & Standards : Buyers SpecificationsProduction capacity : 1,80,00, 000 per AnnumDate of Preparation : Aug. 2011Prepared By ; MSME Development InstituteC- Block, CGO Complex, NagpurIntroductionThe Aluminium Seal is used in the LPG Cylinder as a security measure i.e. before delivery tothe customers. So no body can tamper with it and use the gas partly, so as to avoid customerbeing cheated.Market PotentialThis type of product is required by all the manufacturers of LPG Bottles, i.e. I.O.L., HPCL.BPCL etc. The product has got increasing and steady demand as the production of LPGcylinders is increasing day by day.Basis and PresumptionsThe basis of calculation of production capacity is based on present local market rates on singleshift per day and efficiency at 70% of installed capacity. The cost of machinery andequipments as indicated in this profile refer to a particular make and prices are approximate.Working Hours – 8 Hrs / Day,Working Days – 300 days / YearImplementation ScheduleThis project will take its time of 6 to 8 months from the date of approval. Break up ofactivities with expected time and schedule is given below:Sr No Activity Period1 Market Survey and Project scheme Preparation 1 Month2 Unit approvals and registration (EM II Filing ) 1 Month3 Sanction of Loan and Disbursement 2 Months4 Placement of Order and Procurement of machines 2 Months5 Installation of machines and power connection 1 Month6 Trial run and Commencement of production 1 MonthFew activities can start simultaneously.TECHNICAL ASPECTSProcess of ManufactureAluminium (Al) Sheets (0.2/0.3 mm or 36 SWG) of size 20" × 30" cut from the continuouscoil, will be used as the raw material. The above raw material will be fed into high speedpower press for blanking and drawing. After the operation of power press, the material will be16

processed in the knotching press for keeping gap. Finally, the trimming operation is done, forremoval of extra material and polishing, the seals are polished in the polishing barrel. Thefinished Al-sheets are inspected, properly packed and despatched.Quality Control and StandardsThere is no Indian Standard Specification for this item. All the parameters are covered byI.O.L./H.P. Specification vide Ref. No. RD 15G 214.FINANCIAL ASPECTSA. Fixed Capital(i) Land and Building (Rented)Covered Area of 600 Sq.Ft. @ 10,000 Rs per Month(ii) Machinery and EquipmentsSrNoDescription Qty. Rate(Rs.)Amount(In Rs.)1 High Speed Power Press-10 Ton Cap. 4 80000 320000Motorised2 Trimming Machine Motorised 2 35000 700003 Knotching Machine-Hand operated 2 20000 400004 Treadle Shearing Machine 1 80000 800005 Polishing Barrel 2 25000 700006 Composite Tools and Dies, Work Benchetc.- 500007 Installation and Electrification Charge - 700008 Office Furniture - 150000Total 850000B. Working Capital (per month)(i) Staff and Labour (per month)Sr. Description Nos Amount (In Rs.)No.1 Manager/Supervisor 1 100002 Machine Operator 4 200003 Skilled Worker 4 160004 Helper/Peon 2 6000Total 52000(ii) Raw Material (per month)Raw Material Qty. Rate (Rs) Amount (Rs)Al-Sheet 0.2 mm thick in theform of roll.3000 Kg 200 Rs / Kg 600000(iii) Other Contingent Expenses (per month)Total 600000Sr No Description Amount1 Rent 10,0002 Power and Water 5,0003 Consumable Stores 6,00017

4 Packaging, Grease, Kerosene Oil etc. 20,0005 Office Expenses 10,000Total 51,000(iv) Total Working Capital (per month)Sr No Description Amount1 Raw Material 6,00,0002 Staff and Labour 52,0003 Other Contingent Expenses 51,000Total 703000C. Total Capital InvestmentSr No Description Amount1 Machinery and Equipment 8500002 Working Capital (for 3 months) 703000 × 3 2109000Total 2959000Financial Analysis(1) Cost of Production (per annum)Sr No Description Amount1 Recurring Expenditure 84360002 Depreciation on M/c and office equipment @ 15% 1275003 Interest on total capital investment @ 12% 355080Total 8918580(2) Turn-over (per year)Sr No Description Amount1 Sale of 180 Lac pieces of Al. seal @ Rs 0.50 each 90000002 By sale of scrap @ Rs 70 per Kg. for 6000 Kgs 600000Total 9600000(3) Net ProfitNet Profit = Turn over per year – Cost of production per year= 96 00 000 – 89 18 580= 6 81 420 Rs(4) Net Profit Ratio = ( Profit / Sales ) x 100= ( 681420 / 9600000) x 100= 7.10 %(5) Rate of Return = (Net Profit / Total Capital Investment) x 100= ( 681420 / 2959000) x 100= 23.03 %18

(6) Break-even PointFixed CostAmount (In Rs.)Rent 120000Interest 355080Depreciation 12750040% of Salary 24960040% of Other Contingent Expenses 244800Total 1096980B.E.P = (Fixed Cost / (Fixed cost + Profit)) x 100= (1096980 / (1096980 + 681420)) x 100= 61.68 %Addresses of Machinery Suppliers1. M/s. Batliboi and Co.190–A, Forbes Street,Fort, Mumbai-1.2. M/s. H.P. Singh75, Ganesh Ch. Avenue,Kolkata–13.3. M/s. Oriental Machinery Works23, R.N. Mukherjee Road,Kolkata-13.19