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Project Report AUTOMOBILE REPAIRING & SERVICING WORKSHOP PDF
Project Report AUTOMOBILE REPAIRING & SERVICING WORKSHOP PDF
Project Report AUTOMOBILE REPAIRING & SERVICING WORKSHOP PDF
1. INTRODUCTION
The Automobile Repairing & Servicing Workshop business is a viable
business provided that it is operated with a good business acumen that involves
having a thorough knowledge and experience of the repair and service operations
and also managing the jobs with the right type of skilled manpower. When these
factors combine with good customer relationship management and effective
business development skills, the business is expected to give considerable profits
which are expected to grow over the years.
2. MARKET POTENTIAL
The automotive industry in India is one of the larger markets in the world.
India's passenger car and commercial vehicle manufacturing industry is the sixth
largest in the world, with an annual production of more than 3.9 million units.
According to recent reports, India overtook Brazil and became the sixth largest
passenger vehicle producer in the world (beating such old and new auto makers as
Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil),
with impressive growth rate of 18 percent. In 2010 India emerged as Asia's third
largest exporter of passenger cars, behind Japan and South Korea. India is home to
40 million passenger vehicles. More than 3.9 million automotive vehicles were
produced in India making the country the second (after China) fastest growing
automobile market in the world. According to the Society of Indian Automobile
Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015.
The majority of India's car manufacturing industry is based around three
clusters in the south, west and north. The southern cluster consisting of Chennai is
the biggest with 35% of the revenue share. The western hub near Mumbai and Pune
contributes to 33% of the market and the northern cluster around the National
Capital Region contributes 32%. Chennai, houses the India operations of Ford,
Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo,
Mini, and Datsun. Chennai accounts for 60% of the country's automotive exports.
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Mechanical Division
Gurgaon and Manesar in Haryana form the northern cluster where the country's
largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune,
Maharashtra is the western cluster with companies like General Motors,
Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land
Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area.
Nashik has a major base of Mahindra and Mahindra with a SUV assembly unit and
an Engine assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms
part of the western cluster. Another emerging cluster is in the state of Gujarat with
manufacturing facility of General Motors in Halol and Tata Nano at their plant in
Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in
Gujarat, are some of the other automotive manufacturing regions around the
country. In 2011, there were 3,695 factories producing automotive parts in all of
India. The average firm made US$6 million in annual revenue with profits close to
US$400 thousand.
Furthermore, a consistent growth rate of Indian GDP during the last decades
and increasing competition between leasing companies have caused the lease rates
to decline considerably which have made car an affordable commodity for a majority
of the middle-income class. These factors coupled together reflect on the growing
need for quality repair and service facilities. Once the car comes on the road it is
expected to run for an indefinite period requiring major repair and maintenance
services throughout its operational life. Moreover there is a considerable demand for
wheel alignment and wheel balancing services, which is required by almost every
car, whether new or old. The roughness of the roads and continuous friction causes a
continuous disruption to the alignment and balancing of the wheels which require
adjusting at least once every two weeks for proper upkeep and maintenance.
Conclusively it can be said that there exists an ample demand for quality repair and
service workshops and also that the existing scenario provides conducive
opportunities for entry into this business venture.
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Automobile Repairing & Servicing Workshop
4. IMPLEMENTATION SCHEDULE
Period Starting to
Activity
Completion
Survey for collection of data in respect of demand, raw 0 1st Month
material, including power and fuel, availability of
technology, pollution control etc
Arrangement for margin money 0 1st Month
Preparation of project document and registration and 1st 2nd Month
other clearance
Financial assistance 2nd 3rd Month
Selection of site and development of land 3rd 4th month
Make shift office 3rd 4th Month
Purchasing of machines & recruitment of staff 4th 5th Month
Construction of building & selection of machinery 5th 6th Month
Installation of machinery & purchase of raw materials 6th 7th Month
Trial production 7th 8th Month
5. TECHNICAL ASPECTS
The three main critical factors that affect the decision to invest in the proposed
business setup are:
i) Hands on Experience
Having a thorough knowledge and hands on experience of all the relevant
technical details is a must for entry into this business. Relevant work experience is
the most important pre-requisite because it has a direct impact on the successful
management of the business.
ii) Marketing Skill
Another critical factor is that the entrepreneur must have effective PR &
marketing skills. These marketing skills should enable the entrepreneur to carryout
business development activities to target his potential customers and also to
maintain his existing client base.
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Sublet Services
Sublet services are those ancillary services that are outsourced to other specialized
workshops / personnel that are not a part of the service mix offered by the Auto
Repair workshop. These sublet services include items like Air Conditioner Repair,
Machine Shop Items, Radiator Repairs, Silencer Repairs, Shoker Repairs, Upholstery
Items (seats, bumpers, plastic repairs etc.). These sublet services usually form a part
of the total job order of the Auto Repair Workshop and are usually a portion of the
lump sum amount charged to the customer by the Auto Repair Workshop.
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Automobile Repairing & Servicing Workshop
POLLUTION CONTROL
No Special pollution control measures are needed for the servicing and
repairing of vehicle, however arrangement for proper ventilation should be ensured
in the engine testing areas and waste oils / fluids from the vehicles should be
collected separately before sending to recycling / treatment facility.
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6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building: Working Shed, Store and Parking 500 Sq Mtrs, Office and
Customer louge 100 Sq Mtrs on monthly rent basis.
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Automobile Repairing & Servicing Workshop
6.2.3. Utilities
a) Power 1600 Units @ Rs. 6 Per Unit Rs. 9,600
b) Water Charges (L.S.) Rs. 5,000
Total Rs. 14,600
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7. FINANCIAL ANALYSIS
7.1. Cost of Servicing (per annum)
1. Total recurring cost per year Rs. 1,20,99,000
2. Depreciation on plant and machinery @ 10% Rs. 23,350
3. Depreciation on Computerized Machines @ 20% Rs. 1,06,000
4. Depreciation of office equipment @ 20% Rs. 14,000
5. Interest on Capital Invested @ 12.5% Rs. 4,88,962
Total Rs. 1,27,31,312/-
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Automobile Repairing & Servicing Workshop
23,46,688
= X 100
1,50,78,000
= 15.6 %
23,46,688 X 100
=
39,11,695
= 60 %
B.E.P
Fixed Cost
= X 100
Fixed Cost + Net Profit
25,37,912
= X 100
25,37,912 + 23,46,688
= 52 %
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