PROJECT PROFILE

Product Product Code Category Quality Standard

: 500VA INVERTER : ASICC Code 77216 : ELECTRICAL : IS : 13314- 1992

Production Capacity : QTY: 180 Nos Per Annum Value: Rs. 7,92,000/Year of Prepartion : 2007-08 (NEW)

Prepared By Electrical Division SMALL INDUSTRIES SERVICE INSTITUTE KRISHNANAGAR ROAD, ADVISOR CHOWMUHANI, AGARTALA 799 001.(Tripura) TELEFAX :(0381) 2326570

500VA INVERTER
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A. INTRODUCTION

: Power again fully less,

Inverter is an unit which convert to D.C. Power in A.C. when mains power is gone it automatic start and give A.C. Power and when power comes. It stops and charging of battery is started, so system is automatic. While Diesel Genset is not fully automatic. Inverter is sound fumeless but Genset is not.

The purchasing cost and running cost of inverter is very less than Gen set. Also maintenance is more in Genset. In case of inverter, the installation is easy. So therefore a medium person can purchase inverter but Genset is not possible.

B. MARKET

Due to reliability and cheap costing the demand of inverter is very large. There are many local brand in market but customer is not fully satisfy to those and also standard brand are not manufactured of here. These are made in Delhi, Calcutta and other metros cities. So coast of these brands are high. Hence demand of standard brands is high but due to high casting supply is low. So it is felt if a manufacturing of standard brand is done and supply with reasonable cost then demand of product will be high than other Standard product.

C. BASIS AND PRESUMPTION

1)

The basis for the calculation of the production capacity is normally On single shift basis on 75% efficiency.

2) The salaries and wages, cost of raw materials, utilities, rents, etc. are based on the prevailing rates in and around. These cost factors are likely to be vary with time and location. 3) Interest on term loan and Working capital loan must be preferably current rate. Otherwise, the rate of 16% on an average may be taken. This rate may vary depending upon the policy of the financial institutes / agencies from time to time. 4) The cost of machinery and equipments refer to a particular make / model and prices are approximate. 5) The break-even percentage indicated is of full capacity utilization.

6) The project preparation cost etc.whenever required could be considered under preoperative expense. 7) The essential production machinery and test equipment required for the project have been indicated. The unit may utilize common test facilities available at Electronics Test Development Centres (ETDCs), Electronic Regional Test Laboratories (ERTLs) and Regional Testing Centres (RTCs).

D. IMPLEMENTATION SCHEDULE

: The major activities in the implementation of the project has been listed and the average time for implementation of the project is estimated
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at 12 months: Period (in months) Preparation of project report - 1 Registration and other formalities - 1 Sanction of loan - 3 Plant & Machinery a) Placement of order - 1 b) Procurement - 2 c) Power connection/electrification - 2 d) Installation/Erection of machinery/Test Equipment - 2 5. Procurment of raw material - 2 6. Recruitment of Technical Personal 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 of project may vary from 12 months to 15 months. 1. 2. 3. 4.

E.
1)

TECHNICAL ASPECTS
PROCESS OF MANUFACTURE :
The cabinet will be prepared by other manufacture in order basis. But coil and transformer will be prepared in the proposed workshop. Main Transformer, control Transformer, Relays, Electronics Card, Switch, Socket etc. are mounted in cabinet and wiring is done as per drawing. After completing wiring & testing the product by testing equipment when testing is complete product will be ready for dispatch.

Electrical Characteristics :
Capacity Input Voltage Output Voltage Frequency Charging : : : : : 300 - 1000 W 12/24 V 200-240 V 47-53 Hz 160 - 280 V Requlated. (Max. 10 Amp.)

No Load Consumption :

Nil

2) QUALITY STANDARDS : As per IS : 13314- 1992

4) PRODUCTION CAPACITY PER ANNUM :

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Quantity Value 5) MOTIVE POWER

180 Nos. Rs.7,92,000/3 KVA

6)POLLUTION CONTROL The Govt. accords utmost importance to control environmental pollution.The small-scale entrepreneurs should have an environmental friendly attitude and adopt pollution control measures by process modification and technology substitution. India having acceded to the Montreal Protocol in Sept.1992, the production and use of Ozone Depleting Substances(ODS)like Chlorofluore Carbon (CFCs), Carbon Tetrachloride, Halons and Methyl Chloroform etc. need to be phased out immediately with alternative chemicals/solvents. A notification for detailed Rules to regulate ODS phase out under the Environment Protection Act, 1986 have been put in place with effect from 19th July, 2000. The follwing steps are suggested which may be helped to control the pollution in Electronics industry wherever applicable. i) In Electonic Industry fumes and gases are related during hand soldeing/ wave soldering / dip soldering which are harmful to people as well as evvironment and the ends products. Alternate technologies may be used to face out the existing polluting technologies. Numerous newfluxes have been deloped containing 2 10% solids as opposed to the traditional 15 35% solids. Electronic industry uses CFCs , Carbon Tetrachloride and Methyl Chloroform for cleaning of printed cirduit boards after assembly to remove flux residues left after soldering, and various kinds of foams for packaging.

ii)

Many alternative solvents could replace CFC 113 and Methyl Chloroform in electronics cleaning. Other Chlorinated solvents such as trichloroethylene, per chloroethylene and methylene chloride have been used an effective cleaners in c lectronics industry for may years. Other organic solvents such as ketones and Alcohols are effective in removing bothe solder fluxes and may polar contaminants.

7) ENERGY CONSERVATION With the growing energy needs and shortage coupled with rising energy cost, a greater thrust in energy efficiency in industrial sector has been given by the Govt. of India since 1980s. The Energy Conservation Act 2001 has been
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enacted on 18th August, 2001, which provides for efficient use of energy, its conservation 7 capacity building of Bureau of Energy Efficiency created under the Act. The following steps may help for conservation of electrical energy: i) adoption of energy conserving technologies, production aids and testing facilities. ii) Efficient management of process/manufacturing machineries and systems, QC and testing equipments for yielding maximum Energy Conservation. iii) Optimum use of electrical energy for heating during soldering process can be obtained by using efficient temperature controlled soldering and de soldering stations. iv) Periodical maintenance of motors,compressors etc. v) Use of power factor correction capacitors, Proper selection and layout of lighting system; timely switching on-off of the lights; use of compact fluorescent lamps wherever possible etc.

F. FINANCIAL ASPECTS
1) FIXED CAPITAL : (a)Land & Building: Built up area Rent per month (b)Machinery and Equipment : Sl.No 01 02 03 04 05 06 07 08 09 10 11 DESCRIPTION

: 600 Sq.ft. (Rented) : Rs.1000/-

Ind./ Imp. Winding M/c.Electro Make,Single Indian Coil Electric drill,Kirloskar/0.25W Indian High Speed Variac,Single Phase 300V/10A Indian Digital Multimeter Philips Indian Frequency Meter( 1 to 1000 Hz) Indian Oscilloscope(5 MHz) Indian Megger 500V,DC (2000 Mohms) Indian Electrification charges @10%of the cost of machinery and Equipments Office Equipments,Furniture and working Table etc. Tools,Fixtures,soldering,Iron, Jigs etc. Pre-operative expenses

QTY 1 1 1 1 1 1 1

RATE 3,000/800/1,500/1,000/3,00/10,000/2,000/-

Value (Rs.) 3,000/800/1,500/1,000/3,00/10,000/2,000/1,860/15,000/5,000/2,000/-

Total Says 2. WORKING CAPITAL PER MONTH :

(i)Raw Material Per Month : Sl.No DESCRIPTION 01 Cabinet Qty 15 Pce Rate(Rs.) 300/ Pce
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42,460/42,500/-

Value (Rs.) 4500/5

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02 03 04 05 06 07

Core S.E. Copper wire Electronics Card Relays Control Transformer Miscellaneous Component

100 kg 25 kg 15 Pce 45 Pce 15 -

80/ kg 240/ kg. 500/- Pce 50/- Pce 50/- Pce 500/Inverter

8000/6000/7500/2250/750/7500/-

Total

36,500/-

(ii)Salaries & Wages Per Month :

Sl.No.

Name of the posts

No.of Person 1 1 2 1 1

Salary/month (Rs.) 3,000/1,500/2,500/1,500/1,000/-

1 2 3 4 5 Total

Technical Supervisor cum Testing Engineer Clerk cum Typist Skilled Worker Unskilled Worker Chowkidar cum - Peon

Total Salary per month (Rs.) 3,000/1,500/5,000/1,500/1,000/12,000/1,800/-

+ 15% perquisites G. Total

13,800/-

(iii) Utilities Per Month : 01. Electricity 02. Water

Rs. 600/200/=====

Total

Rs. 800/=====

(iV) Other Contigent Expenses Per Month : Sl.No. 1 2 Rent Postage & stationery DESCRIPTION Amount (Rs.) 1,000/200/-

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3 4 5 6 Total

Telephone Repair ,Maintenance and Consumable sotres Transport and conveyance charges Insurance

500/2,000/1,000/500/-

Rs. 5,200/-

3)

Total RECURRING EXPENDITURE PER MONTH S.No 01. 02. 03. 04. DESCRIPTION Raw material Salaries & wages Utilites Other contigent expenses AMOUNT (Rs.) 36,500/13,800/800/5,200/-

Total
4) WORKING CAPITAL (For 2 Months) =

Rs. 56,300/-

56,300 *

= Rs. 1,12,600/-

5) TOTAL CAPITAL INVESTMENT FIXED CAPITAL WORKING CAPITAL FOR 2 MONTHS Total

42,500 1,12,600 ========= Rs. 1,55,100 =========

G. FINANCIAL ANALYSIS
i) Cost of Production Per Annum : S.No 01. 02. 03. 04. 05. DESCRIPTION Total Recurring expenditure Depreciation On Machinery and Equipment @ 10% Depreciation On Office Furniture @ 20% Depreciation On Tools,Fixtures,Jigs @ 25% Interest on capital investment @ 16% Total AMOUNT (Rs.) 6,75,600/1,860/3,000/1,250/24,816/7,06,526/-

Say
ii) Turnover Per Annum : Item Qty (Nos.) Rate/Unit(Rs.)

Rs. 7,06,500/-

Total Sales(Rs.)

500 VA Inverter

180

4400/-

7,92,000/-

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iii) Profit Per Annum : Sales Per annum Cost of Production per annum (Rs.) 7,92,000/7,06,500/==========

Profit
iv) Net Profit Ratio = Profit/annum * 100 --------------------Sales/annum 85500 * 100 --------------------792000

Rs.

85,500/==========

= v) Rate of Return =

10.80 %
Profit/annum * 100 -------------------------Total Capital investment 85500 * 100 --------------------155100

= vi) Break Even Point : (a)Fixed cost per annum : S.No DESCRIPTION

55.13 %

Depreciation Rent Insurance Interest on investment @ 16% 40% of salary and wages 40% of other expenses & excluding Insurance and Rent 25% 0f utilities

AMOUNT (Rs.) 6,110/12,000/6,000/24,816/66,240/17,760/2,400/1,35,326/-

Total
(b)Profit per annum = Rs. 85,500/Break Even Point =

Fixed Cost/annum * 100 -------------------------Fixed cost/annum + profit/annum 135326 * 100 --------------------135326 + 85500
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61.28 %

H. 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. b. The Electronics 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 banks discretion.

I. Name and Addresses of Supplier's of Machinery & Equipments:

1. M/s Krishna C. Arora & Co., P.O. Box - 4218, New Delhi. 2. M/s Hollis Engineering Inc., USA, Agent - Inde Associates, 16 Rest House, Crescent off. Churchstreet, Bangalore - 560 001. 3. M/s Vasavi Electronics 162 Vasavi Nagar, Securanderabad - 500 003. 4. M/s Pacific Electronics, 10-3-6/1, Addayutta, East Mared Pally, Secunderabad - 500 026. 5. M/s Instrumentation Electronics, 14, Friends Colony, Ind. Area Lane No.3, GT Road Sahadara Delhi - 110 032. Testing Equipments 01.M/s.Toshniwal Bros. (P) Ltd., 85A, Sarat Bose Road,Kolkata-26. 02.M/s.Scientific Suppliers & Services, P-39, Princep St.,Kolkata-26.

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03. M/s Eastern Scientific Corporation B.K.Chowmuhani,Agartala 04. M/s Ablab Limited Eastern Region,P-26/1,C.I.T,Road,Kolkata-14

J. Name and Addresses of Supplier's of Raw Materials:

1. Manager (Sales) Component Sales Department, 2. M/s Bharat Electronics Ltd., Jallahali Bangalore - 560 013. 3. M/s Continental Device India Ltd., Plot - II c-120, Naraina Indl. Area, New Delhi - 110 020. 4. M/s Electronics Era, 212, S.T. Road, Carnac Bunder, Mumbai - 400 609. 5. M/s Karnataka State Electronics Div. Corp., Emlyn Haven, 30 Race Course Road, Bangalore. 6. M/s Sales Manager Sanky Pressing Division (GKW), 124, Crrole Road Howrah. 7. M/s Devidayal Stainless Steel Industries Pvt. Ltd., P.O. Box- 6224 Darukhana, Reay Road, Mumbai - 400 010.

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