PROJECT PROFILE

ON
INVERTERS
***

Name of the Product : Inverters

Product Code : 366203010

Quality & Standards : There are no Indian Standard for these

types of Inverters & Converters.

Production Capacity : Products Quantity Value

Static Inverters 1200 Nos, Rs. 30,36,000/-

Month & Year of : 2006-07.

Preparation

Prepared By : Small Industries Service Institute,

Ministry of Small Scale Industries,
Government of India
107, Industrial Estate, Kalpi Road,
Kanpur-208012.
Tele: 2295070, 2295071 & 2295073 (EPBAX)
Tele. No. 2295072 (SENET & TRC)
Tele/Fax No.: 0512- 2220831
Email: sisiknp@sidomail.net
Website: sisikanpur.gov.in

(179)
 PART-II

I. INTRODUCTION:

Inverters: An Inverter is a device, which converts DC power into alternative sources.

This conversion may be accomplished by electro-mechanical means namely motor, Generator sets
are entirely by electronics means. Inverters in which power conversion is accomplished by SCRs
are called static inverters. A static inverter uses transistors as switches and for high power applications
only SCRs are used.

Inverters find applications where emergency stand-by power is required and / or there is
no AC power available. Such applications are fluorescent tube lighting during power failure in
vehicles, in hospitals, airports etc. These also find wide uses as stand-by power supply for computers,
instrumentations and telecommunication equipment etc.

II. MARKET POTENTIAL:

Inverters up to 500 VA are normally used for a wide number of applications.

Inverters are low capacity find wide use in fluorescent lighting. Present trend of usage of
tube lights in buses, trucks, railways, coaches has increased the market potential. These can also
be used in emergency lamps. Increase of health centers / hospitals has directly created the demand
as emergency / stand-by power supply in such cases.

There being tremendous growth of industry and usage of modern instrumentation and
process control equipments the demand of inverters and converters has widely increased.

Period (in months)

1. Preparation of project report 1

2. Registration and other formalities 1

3. Sanction of loan by financial institutions 3

4. Plant & Machinery

a) Placement of orders 1

b) Procurement 2

c) Power connection/Electrification 2

d) Installation /Erection of Machinery/Test Equipment 2

(180)
5. Procurement of raw materials 2

6. Recruitment of Technical Personnel etc. 2

7. Trial Production 11

8. Commercial production 12

Note:

1. Many of the above activities shall be initiated concurrently.

2. Procurement of raw materials commences from the 8th month onwards.

3. When imported plant and machinery are required, the implementation period of project
may vary from 12 months to 15 months.

V. TECHNICAL ASPECT:

MANUFACTURING PROCESS:

Special transformers needed for such product are procured from outside as per the given
specifications. The critical components, which go to make up the products, are tested to ensure
that they meet the required specifications. The components are fixed and solder on printed circuit
board (PCB) according to the design. Controls and sockets are assembled individually. The PCB
transformers etc. are mounted on the chassis and all the inter connections made. The waveforms at
various checkpoints, output voltage and power are checked adjustments are made so that the
products meet the desire performance specifications. On completion of testing the instrument is
kept for soaking the specific time period to ensure its quality and reliability.

Process Flow Chart:

1. Purchased 2. Inspection of 3. Sub-assembly 4. Wiring 5. Checking of

Components Finished product

7. Packing 6. Testing

Production Target

Products Quantity Value

Static Inverters 1000 VA 1200 Nos. Rs. 30,36,000/-

(181)
QUALITY CONTROL & STANDARD:

There are no Indian Standards for these types of Inverters and Converters. However, sample
technical data for each type of product is given below:

Inverters

Input Voltage AC 140 to 260 Volts

AC Output 220Volts
Output Power & Regulation 1000 VA + 2%
Frequency Regulation + 1%
Nominal efficiency 75%

1. POWER REQUIRED: 10.0 KWH

Water Required: 1000 KL/monthly

2. ENERGY CONSERVATION:

The following steps may be taken for the conservation of energy.

1. Machinery & Equipment’s parts, which are revolving and reciprocating should be properly,
lubricated from time to time with suitable lubricant oil.

2. Layout of the unit should be in such a way in that no back tracking of material is there.

3. All electric switches may be kept off, when not required.

4. The entire transmission belt will be tightened before starting the work is whereever
applicable.

5. Fluorescent tube with electronic Chokes may be used for energy saving. Further recently
developed compact fluorescent tubes called (CRT) of 10, 15, watts Philips/Glaux made
may be used for energy saving and decoration. These self-ballasted fluorescent lamps are
high efficiency replacements for ordinary bulbs. For same light output, CFLEBs consume
about one-fifth the power consumed by ordinary bulbs, thereby saving a lot of energy.
The savings get further multiplied when CLEBs are used in air conditioned areas, since the
saving of energy by using CLEBs also corresponds to less heat dissipation reducing load
on air conditioners. The life of CFLEBs is about 8000/10000 hours i.e. about 10 times
that of ordinary bulb.

The typical payback period in terms of savings of energy bills and cost of ordinary lamps
is about 6 months operation. Unlike ordinary bulbs, these CFLEBs provide choice of
three colours designated A, B & C, to suit individual requirements.

(182)
 Electronic Ballast, with protection against high voltage spikes, along with high quality CFLs
make these composite CFLEI3s (or self ballasted CFLs) Slim, lightweight, efficient and
reliable units.

6. As far as possible Solar Energy and day light will be used keeping all the other lights off.

7. As far as possible inductive load of motor will be reduced and high power factor will be
used with the aid of capacitors of appropriate sizes.

POLLUTION CONTROL:

1. This industry involves pollution to some extent for which State Pollution Control Board
has to be approached.

2. Minimum height of shed will be maintained with exhaust fans should be installed for removing
decongestion proper ventilation, removal of cokes fumes etc.

VI. FINANCIAL ASPCCTS:

1. Fixed Capital:

Land and Building (rented) On Rent @ Rs.20/-Sq. meter 4,000.00

Covered Area 200 Sq. meter

2. Machinery and equipment:

Sl. Description HP/KW Ind/lmp Qty. Value(Rs.)

No.

(a) Production Unit- Name of machine with specification

1. Coil winding machine Ind 2 15,000/-

2. Frequency counter (100 MHz) Ind 1 8,000/-
3. LCR Bridge (Digital) Ind 1 14,000/-
4. Ocilla scope dual trace (10 MHz) Ind 1 16,000/-
5. DC regulated power supply (30V, 2 Amp) Ind 2 3,700/-
6. Digital Voltage (4½ digits) Ind 2 2,500/-
7. Multi-meter Ind 2 16,000/-
8. Line frequency Monitor Ind 1 1,200/-
9. True RMS meter (4 digits) Ind 1 8,000/-

(183)
 10. Dummer Stat (4amps & 8 Amps) Ind 3 2,000/-
11. Panel Meters Ind 4 1,000/-
12. HV. Tester Ind 1 6,000/-
13. Rheostats Ind 10 2,000/-
14. Electric Drill (½”) (Pillar Type) Ind 1 4,000/-
15. Megger Ind 2 4,000/-
91,500/-

(b) Electrification & Installation charges @ 10% 9,150/-

(c) Cost of Jigs/Fixtures/Dies etc. 8,000/-

(d) Cost of Office Equipment/Working Table etc. 80,000/-

Total Cost of machinery & Equipments 1,88,650/-

(a + b + c + d )

3. Pre-operative Expenses 10,000/-

Total Fixed Capital (2 + 3) 1,98,650/-

VII. WORKING CAPITAL (Per month):

1. Raw Material (Per month):
STATIC INVERTERS (1000 VA)

Sl. Description of Items Ind/ Qty. Rate Value

No. Imp. (Rs.) (In Rs.)
1. Resistors Ind. 12,000 0.18 2,160/-
2. Diodes ” 5,000 0.50 2,500/-
3. Capacitors ” 2,100 2.00 4,200/-
4. Switches ” 200 6.00 1,200/-
5. Transistors ” 2,200 1.00 2,200/-
6. S.C.R. ” 200 5.00 1,000/-
7. Mosfet ” 600 12.00 7,200/-
8. Heat Sink ” 500 7.00 3,500/-
9. ICs ” 800 12.00 9,600/-

(184)
10. LED ” 600 0.75 450/-
11. Connectors ” 100 10.00 1 ,000/-
12. Auto Wires ” 1 00 Mtr. 14.00 1 ,400/-
13. Wire & Sleeves ” 10 Packets 72.00 720/-
14. Relays ” 100 34.00 3,400/-
15. Lug ” 300 0.50 150/-
16. Cabinet ” 100 170.00 17,000/-
17. PCB ” 100 30.00 3,000/-
18. Jacks ” 800 1.25 1,000/-
19. Pre-set ” 700 1.50 1,050/-
20. Socket ” 100 5.00 500/-
21. Fuse Holder ” 100 10.00 1,000/-
22. Mains Lead ” 100 5.00 500/-
23. Copper Wire ” 125 Kq. 170.00/Kq. 21,250/-
24. Tapes ” 20 Rolls 7.00 140/-
25. Sleeves Plastic Formers ” 1 00 Meters 1.00/Mtr. 100/-
26. Impreqnation Compound ” 30Kg. 40.00/kq. 1,200/-
27. Ktheriod + Prespam Paper ” 5,000/-
28. P.F. ” 2000 1.00 2,000/-
29. Hardware ” 3,000/-
30. Coir ” 65 Boxes 320/Box 20,800/-
31. Varnish 1 0 Ltrs. 60/Ltr. 600/-

32. Solder 2 Kg. 250/Kg. 500/-

33. Fluxes 200 Gms. 2,000/-

34. Hardware Fittings and Misc. ” LS 26,200/-

items.

Total: 1,49,520/-

(185)
(2) Staff & Labour (Per Month):

Sl.No. Personnel No. Rate(Rs.) Amount (In Rs.)

1. Manager 1 6,000/- 6,000/-
2. R&D / Design Engineer 1 4,500/- 4,500/-
3. Skilled Worker 2 3,250/- 6,500/-
4. Semi-Skilled Worker 2 3,000/- 6,000/-
5. Production Supervisor 1 4,000/- 4,000/-
6. Accountant/Clerk/Typist 2 2,800/- 2,800/-
7. Helper/Unskilled Worker 2 2,500/- 5,000/-
Total: 34,800/-
Perquisites @ 15% on the 5,220/-
total salary
Total: 40,020/-
Say: 40,000/-

(3) Utilities:

i. Electricity 900 Units @ 5.00/Unit 4,500/-

ii. Water 300/-
Total: 4,800/-

(4) Other Contingent Expense ( Per Month):

1. Rent 4,000/-
2. Postage & Stationery 1,200/-
3. Advertisement 2,000/-
4. Repair & maintenance 3,000/-
5. Telephone /Fax charges 3,000/-
6. Transport, Packing & Conveyance charges 2,000/-
7. Consumable 1,000/-
8. Insurance 800/-
9. Miscellaneous Expenses 1,000/-
Total: 18,000/-

(186)
VIII. TOTAL RECURRING EXPENSES ( PER MONTH) :

= 1 +2+3+4

= 40,000 + 1,49,520 + 4,800 + 18,000 = Rs. 2,12,320/

IX. WORKING CAPITAL FOR 3 MONTHS

2,12,320 X 3 = Rs. 6,36,960/-

X. TOTAL CAPITAL INVESTMENT:

i. Fixed Capital 1,98,650/-

ii. Total Working Capital for 3 months 6,36,960/-
Total: 8,35,610/-
Say: 8,35,600/-

XI. MACHINERY UTILISATION:

It is expected that during first year machine utilization will be70% and during second year
85% and 100% in subsequent years.

XII. FINANCIAL ANALYSIS:

1. COST OF PRODUCTION (Per Annum):

i. Total Working Capital per annum 25,47,840/-

ii. Depreciation on machinery & equipment @ 10% 10,065/-
iii. Depreciation of Jigs and fixtures, Dies @ 25% 2,000/-
iv. Depreciation on office equipments etc. @ 20% 16,000/-
v. Interest on total capital investment @ 16% per 1,33,696/-
annum
Total Cost of Production: 27,09,601/-
Say: 27,09,600/-

XIII. TURN OVER (Per Annum):

Item Qty. (Nos.) Rate/Unit (Rs.) Total Sales

Inverters 1,200 2,530/- Rs. 30,36,000/-
(1000 VA)
Total: Rs. 30,36,000/-

(187)
XIV. NET PROFIT (Per Annum):

(Before Income-tax)

Turn Over (-) Cost of Production

30,36,000/- (-) 27,09,600/ = Rs. 3,26,400/-

XV. NET PROFIT RATIO:

Net Profit Per Annum X 100 3,26.400X 100 = 10.7%

Total Sales/Annum 30,36,000

XVI. RATE OF RETURN:

= Annual Profit X1 00 = 3.26.400X 100 = 39%

Total Capital Investment 8,35,600

XVII. BREAK EVEN ANALYSIS:

Fixed Cost (Per Annum):

1. Rent 48,000/-
2. Depreciation on Machinery & Equipments @ 10% 28,065/-
3. Interest on Total Capital Investment @ 16% 1,33,696/-
4. Insurance 9,600/-
5. 40% of Salary 1,92,000/-
6. 40% of other contingent expenses 63,360/-
Total Fixed Cost: 4,74,721/-
Say: 4,74,700/-

Break Even Point:

Fixed Cost X 100 = 4,74,700 X 100 = 59.2%

Fixed Cost + Profit 4,74,700 + 3,26,400

Additional Information:

a. The Project Profile may be modified/tailored to suit the individual entrepreneurship qualities/
capacity, production programme and also to suit the locational characteristics wherever
applicable.

(188)
 b. The electrical Technology is undergoing rapid strides of change and there is need for
regular monitoring of the national and international technology scenario. The unit may,
therefore, keep abreast with the new technologies in order to keep them in pace with the
developments for global competition.

c. Quality today is not only confined to the product or service alone. It also extends to the
process and environment in which they are generated. The ISO 9000 defines standards
for Quality Management systems and ISO 14001 defines standards for Environmental
Management system for acceptability at international level. The unit may therefore adopt
these standards for global competition.

d. The margin money recommended is 25% of the working capital requirement at an average.
However, the percentage of margin money may vary as per bank’s discretion.

XVIII. Names & Addresses of Machinery & Raw material Suppliers:

1 M/s Stead Electronics, 17-U.A., Jawahar Nagar, Delhi-1.

2 M/s Bhuji Electronics, C-106/4, Naraina Industrial Area, Phase-1,

New Delhi-110028.

3 M/s Transtronix India (P) Ltd., 80A, DDA shed. Okhla Phase-II,
New Delhi-110020.

4 M/s Picco Electronics & Electrical Ltd., Science & Industry Division,
Shivnagar Estate, Worli, Mumbai-400018.

5 M/s Chaudhary Trading Co., Bhagirath Place, Delhi-6.

6 M/s Electronics Development Laboratory, 6/3, Kirti Nagar Indl. Area,

New Delhi-110015.

7 M/s British Physical Laboratories, 501, Poonam Chambers,

Dr. Anne Besant Road, Worli, Mumbai-400018.

(189)