PROJECT REPORT FOR MANUFACTURING OF FARM EQUIPMENT

INTRODUCTION :The manufacturing of agriculture equipment such a tractor trailers, pulverizer, plough, to the costumers specifications. There are no MNCs in this segment. And the existing producers are very few. The major market is Kerala as there are no manufactures there due to labor laws. The existing demand is supplied by manufactures in Tamil Nadu near Chennai. The plant will be set up at Pollachi TN, 40Km away from Kerala on own land. This will reduce transportation cost and the materials & labor required are available there. More over the government is provides up to 40% subsidy on agriculture products which has greatly increased the demand and the average life expected of a trailer is 2 Years. a) Availability of Raw Materials :All the required materials are indigenous and widely available in the market. b) Marketability :The end products to be sold all over Kerala and Tamil Nadu mainly in the district of Pollachi in Tamil Nadu. Idukki, Kollam and Trivandrum districts of Kerala c) Manufacturing Process :At first required materials mostly metal sheets are procured directly from the manufacturer (SAIL), then they are cut as per order and welded. The designs and technology are already freely available. a) Number of Working Days / Months b) Number of Shift / Day c) Number of Working Hrs. / Shift d) Item of Production e) Annual Installation capacity of product f) Annual Target of Production ( i.e. activity level ) g) Total Electric Power needed h) Area required i) Total capital required :25 Days :Single Shift :8 Hours :Tractor Trailers, heavy plough, pulverizer :350 Trailers, 400 pulverizer :300 Trailers, 300 pulverizer

: 200 H.P : 20,000 sq.ft 5000 sq.ft indoor :Rs 27,00,000

Plant & Machinery

SL.

Description

No.

Amount (Rs)

1 2 3 4 5

5 Ton Crain Electric Welding Machine Gas Welding Machine Power Cutter 50Kv Generator (optional) Total

2 5 4 2 1

300,000 300,000 160,000 10,0000 600,000 140,000

Tools, Equipments & Other accessories

SL. 1 2 3 4 5

Description Drill and cutter LPG/ Oxygen Metal Sander Tools & Equipment Office supplies & furniture Total

No. 2 4 each 4 ~ ~ 40,000 40,000 40,000 200,000 200,000 5,20,000

Amount (Rs)

Sales Tax Freight, Insurance & other contingencies

:200,000

Utility :400,000 Fire fighting equipment, wiring pipe line, storage tank, Lighting etc CALCULATION OF RECURRING EXPENDITURE / Trailer MATEREIALS EXPENDITURE / Trailer :-

SL. 1 2 3 4 5 6 7 8

Description 9mm iron sheet 1.5x1m 7mm iron sheet 1,5x1m 5mm iron sheet 1.5x1m 5 ton Hydraulic Tire + disk paint 6mm angle others Total

QTY 2 3 5 1 2 4 liters 10 ~

RATE(expected) AMOUNT 3000 2500 2000 6000 6000 500 500 ~ 6000 7500 10000 6000 12,000 2000 5000 15,000 63,500

SALARY & WAGES :SL. 1 2 3 4 5 6 POST Manager Supervisor Skilled workers UN-skilled workers Accountant Office staff Total NO. 1 1 6 4 1 3 RATE 22000 18000 15000 6000 8000 8000 AMOUNT 22,000 18,000 90,000 24,000 8000 24,000 1,88,000

MISCELLANEOUS EXPENDITURE 1 2 3 Rent (own place) Electric power Fuel (diesel for generator and tractor) 25,000 300,000 100,000

4 5 6

Transportation Advertisements Taxes , bills, etc Total Price of final product 1) Trailer 2) Pulverizer 1,10,000 + 4.5%tax = 1,11,950 85,000 + 4.5%tax = 88,825

30,000 20,000 200,000 7,75,000

ANTICIPATED PROFIT & LOSS ACCOUNTS PER MONTH

Description Recurring expenses Salary Expenditure

Amount

Sl. 1)

Item Sale of a Trailer

QTY 25

Rate(profit) 46,500

Amount 11,62,500

1,88,000 7.75,000 9,63,000 2) Sale of a pulverizer 20 20,000 4,00,000

Total

Total Non-recurring expense = 25,20,000 Total fixed/recurring expense = 9,63,000 BEP=fixed cost / ( price variable cost ) BEP=Rs.9,63,000 / (1,10,000 63,500) BEP= 20.70

Profit at anticipated rate of production = Rs (11,62,500 + 4,00,000)- 9,53,000 = Rs 6,09,500 At this level of production the initial Non-recurring cost will be covered within 4 months of operation.

PROJECT REPORT

By

Tushaar Vishnu 10BEC0169 SLOT-G1

Corporate Economics