Introduction-:

Ceiling fans are electronically powered mechanical devices that are mounted on the roof of enclosed
spaces. They consist of rotating paddles that move in a clockwise direction to circulate the still air in an
enclosed space, which produces a cooling or destratification effect. As compared to air conditioners and
coolers, a ceiling fan is more cost-effective, energy-efficient, and have a longer shelf-life. On account of
this, they are extensively utilized across both residential and commercial areas.
A ceiling fan is a fan mounted on the ceiling of a room or space, usually electrically powered, that uses
hub-mounted rotating blades to circulate air. They cool people effectively by increasing air speed. Fans
do not reduce air temperature or relative humidity, unlike air-conditioning equipment but create
a cooling effect by helping to evaporate sweat and increase heat exchange via convection. Fans may add
a small amount of heat to the room mainly due to waste heat from the motor, though partially due to
friction. Fans use significantly less power than air conditioning as cooling air
is thermodynamically expensive. In the winter a ceiling fan can also be used to bring warm air, which
naturally rises, back down to occupants. This can affect both thermostat readings and occupants' comfort,
thereby improving climate control energy efficiency. Many ceiling fan units also double as light fixtures,
eliminating the need for separate overhead lights in a room.
Electric Ceiling fan is a common electrical appliance used for providing good air circulation. It is manufactured in
sweep diameters of 900 mm, 1050mm, 1200mm ,1400mm and 1500mm. Out of these fans of 1200 mm and 1400mm size are
most commonly used. Ceiling fans employ fractional horse power AC motors to operate .

Ceiling Fans For Destratification In Heating Mode-

In addition to directly cooling occupants, ceiling fans also effectively mix the air in a space, which has
several applications. The most common of these applications is where the temperatures in a space are
stratified, with much warmer air close to the ceiling and cooler air near the floor. This typically occurs in
spaces with high ceilings or where the heating equipment has a relatively high discharge temperature. In
these conditions, ceiling fans can mix the air in the space such that the temperature at the floor (and close
where the thermostat is located) is close to the average temperature in the space. This can save energy
and also improve occupant comfort. Ceiling fans can run in either direction to achieve this mixing,
 though they will use more power to achieve the same mixing effect when operating in reverse (moving
air upward) than forwards (moving air downward). Note that when destratifying, the space is typically
operating in heating mode and operating at the lower end of the range of temperatures that define the
thermal comfort zone. As such it is very important to maintain very low air speeds in the occupied zone
in order to avoid the sensation of draft. Depending on the specific conditions, the occupant locations, and
the minimum speed capabilities of the fan, running the fan in forward or reverse may be better able to
achieve this goal .
Occupant Interface and Education –

A key part of the success of any ceiling fan installation is ensuring that occupants understand the purpose
and use of the ceiling fans. In cases with regular occupants (as opposed to spaces with transient
occupants such as lobbies or event spaces) who do not have direct control over the fan operation,
occupants should be informed about the purpose and operation of the ceiling fans. Ideally, spaces where
occupants do not have direct control over fan operation should also allow for flexibility so that occupants
may find a location within the space that best suits their comfort preferences. In applications where
occupants have access to fan controls, it is also helpful to post information or instructions encouraging
occupants to adjust ceiling fan settings when they are too warm, rather than reducing thermostat set
points .

Cost Savings :-

The benefits described above—thermal comfort, improved air distribution, and improved air quality
— achieve more than just increased occupant satisfaction, they can also help reduce first costs for HVAC
systems. Using ceiling fans to more effectively distribute air throughout a space can reduce the extent of
distribution ductwork and diffusers required to serve a zone. Additionally, if the same zone is designed to
a slightly higher cooling setpoint due to the comfort cooling effect provided by the fans, this can also
reduce the required latent and sensible cooling capacity of the HVAC system, providing first cost savings
to equipment and ductwork. Energy Savings Perhaps most importantly, when implemented effectively as
an integral component of a building’s thermal comfort strategy, ceiling fans can also result in significant
energy savings by reducing the demand on the HVAC system. Although ceiling fans consume energy,
the potential HVAC savings outweighs fan energy use, typically by a factor ranging between 10 and 100
times. The primary energy saving derives from thermal comfort benefits of ceiling fans, keeping
occupants comfortable at higher temperatures and allowing for increased cooling setpoints. Effectively, a
room with ceiling fans is thermally comfortable over a wider range of temperatures than a room without
ceiling fans. This wider range of temperatures reduces the cooling and fan energy consumption of the
HVAC system. Counterintuitively, this wider range of temperatures also reduces heating energy
consumption because when a space is warmer, it will take longer to cool down to the heating setpoint.
Lastly, when ceiling fans are used to provide air distribution, reducing the extent of distribution ductwork
and diffusers, they also help reduce HVAC fan energy by reducing the pressure drop in the air system.
The section on Modelling, Simulation and Estimating Energy Savings discusses these effects in more.

Market Potential :-

We expect the India ceiling fan market to exhibit a CAGR of 2.60% during 2022-2027. The India ceiling
fan market is majorly being driven by rapid urbanization and the increasing construction of new
residential buildings. This is further supported by several initiatives undertaken by the Government of
India (GoI) to expand housing projects and develop smart cities across the country. In line with
this, the improving availability of electricity, especially in the rural areas, is further
catalyzing the market growth. Additionally, the inflating disposable incomes are creating a
significant demand for fans with aesthetically appealing designs and smart features, such
as voice control and remote connectivity through smart devices, which is accelerating the
overall product sales. Other factors responsible for the market growth include significant
 expansion in the retail and hospitality sectors, along with the easy availability of premium
product variants, like lighting fans, through online retail channels. Ceiling fans now have
become an integral part of any type of building - offices, schools, college, factories, hospitals and
almost all types of commercial establishments. With the overall growth, urbanization and rural
electrification the demand for ceiling and exhaust fan are growing day by day .

Market Prices-
An informal survey of dealers in noida area, yielded the following approximate prices per fan for a
proposed purchase of six fans: Branded Fans Rs. 1350-1400 Low Quality Fans from Unorganized Sector
~Rs. 800 Prices may vary in other parts of the country but these numbers give an indication of the price
level for fans.

Cost Structure :-
As detailed in the Annexure, the approximate cost of a ceiling fan with a sweep of 1200 mm using good
quality materials is about Rs. 900-950. We estimate that the corresponding costs for a fan from the
unorganized sector and of inferior quality would be about Rs. 700. Further, conversations with
manufactures indicate that costs of an energy efficient design would be only about Rs. 50 more giving a
total manufacturing cost of about Rs. 750. We are giving a rough estimation of the realization by
manufacturers of ceiling fans. Working backwards from a MRP of Rs. 1350-1400 for a good quality fan,
it shows that a manufacturer realizes about Rs. 405 per fan .

COST STRUCTURE FOR CEILING FANS :-

Table A-1: Indicative Costs for Ceiling Fan with 1200 mm Sweep Using Good Quality Materials

Item Quantity Cost (Rs.)

Material Costs 865
Silicon Stampings 1.1 kg
Copper Wire for Winding 0.3 kg
Shaft 1 No.
End-Shields (Castings) 2.2 kg
Bearings 2 No.
Rotor Die-Casting 1 No.
Canopies 2 No.
Capacitor 1 No.
Fan Blades 3 No.
Labor incl. Painting 45
Packing 35
TOTAL COST 945

Table A-2: Estimate of Manufacturer’s Realization for Ceiling Fan with 1200 mm Sweep Using Good Quality
Materials

Activity Cost (Rs.) Realization (Rs.)

MRP 1375
Discount to Consumer 125
Distributor & Retailer Margins 150
Taxes 220
 Excise Duty
VAT
Octroi
Transportation 35
Manufacturers Fixed Cost 200
TOTAL ADDITIONAL COSTS 730
REALIZATION BY MANUFACTURER 645

Raw materials required for ceiling fan manufacturing-

The main raw materials required for manufacture of Ceiling fan is steel sheet for stamping, aluminum casting for
body and cover, aluminum sheets for blades assembly, copper winding wire, ball bearings, down rods,
capacitor 4 UF for motor, regulators, bushes, resistance wires, insulated materials, painting materials,
hardwares and other miscellaneous materials like nuts, bolts, ball, and packing materials .

Process:

Manufacturing Process / steps are as follows:

1. The rotor casting are purchased and turned to the required dimension.

2. The armature core is cleaned and coil winding is done on it with automatic coil winding
machine.
 3. The rotor casting and blades are painted and baked in the oven.

4. The armature and rotor are assembled along with body part.

5. Blades are fitted along with other fittings.

6. Testing the finished product while feeding input power through any electrical point

7. Packaging of the finished in a colorful and attractive box

Process Flow:

Raw Finishing
materials Cutting Wiring &
Assembling Fitting
Coiling

Ready for Packing Painting

Sale

Basis and Presumptions

i) The basis for calculation of production capacity has been taken on single shift basis on 75%
efficiency.

ii) The maximum capacity utilization on single shift basis for 300 days a year. During first year and
second year of operations the capacity utilization is 60% and 80% respectively. The unit is expected to
achieve full capacity utilization from the third year onwards.

iii) The salaries and wages, cost of raw materials, utilities, rents, etc. are based on the prevailing rates
 in and around noida These cost factors are likely to vary with time and location.

iv) The cost of machinery and equipment refer to a particular make / model and prices are
approximate.

v) The break-even point percentage indicated is of full capacity utilization.

vi) The project preparation cost etc. whenever required could be considered under pre-operative
expenses.

vii) The essential production machinery and test equipment required for the project have been
indicated.

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 at 24 months:

Sl. Activity Period

No. (In Months)
1. Preparation of project report 1 2 months
Registration and other
Formalities including
construction of shed

2. Plant and Machinery: 2 months

a) Placement of orders

b) Procurement
c) Power connection/
Electrification
d) Installation/Erection of

(a+b+c+d) =2
months
machinery/Test Equipment

3. Procurement of raw 1 month

materials
4. Recruitment of Technical 2 months
Personnel etc.
5. Trial production 2 months
6. Obtaining completion certificate 1 month
7. Commercial production 2 months
Note :-
1. Many of the above activities shall be initiated concurrently.

2. Procurement of raw materials commences from the 15th month onwards.

3. When imported plant and machinery are required, the implementation period of project may vary
from 24 months to 30 months.

Financial Aspects
A. Fixed Capital

(i) Land and Building

It is proposed to get the construction done of shed within 12 months of allotment of plot by authority,
construction cost of 500 square meter of shed will be 20,00,000/-

(ii) Machinery and Equipments

Sl. Description Ind. Qty. Value
No. Imp. (Rs.)
1. Lathe machine Ind. 1 100000
33
1800 mm bed.
2. Automatic Coil Ind. 2 100000
winding machine
3. Drilling machine Ind. 1 5000
25 mm
4. Bench Grinder Ind. 1 5000
D/ E
5. Fly Press No. 4 Ind. 2 8,000
6. Impregnation Ind. 1 10,000
chamber for

varnishing,
Baking
7. Spray painting Ind. 1 15000
with Air
Compressor
8. Oven size Ind. 1 5000
1200 mm x 1200
mm (for painting)
9. Portable drilling Ind. 2 4,000
machine
10. Tank, Hand 10,000
Tools, etc.
Total 262000/-
Testing Equipments

Sl. Description Qty. Value

No. (Rs.)
1. High voltage Ac Test 1 5,000
Equipment 0-5kV, Ac.
2. Megger 500 volt DC 1 2,000
3. Kelvin Bridge 1 11,000
4. Test Panel with wattmeter 1 10,000
Ammeter, voltmeter, frequency
meter, P F Meter, etc
5. Anemometer 1 6,000
6. Multimeter 1 3,000
7. Tachometer 1 5,000
8. Air delivery Test Chamber 1 20,000
Total 62,000

Auxilary Equipments

(i) Electrification and Installation 50,000

(ii) Furniture and Workshop Benches 50,000
(iii) Fire Extinguishers 20000

Total 1,20,000

Total Cost of Plant and Machineries

2,62,000 + 62,000 + 1,20,000 = Rs. 4,44,000

Sl. Description Qty./ Rate Value

No. Kg. (Rs.) (Rs.)
1. steel sheets for stamping 1500 Kg. 60 90,000
2. Lamination 1500 Kg. 50 75000
3. Super Enameled
Copper Wire. 200 Kg. 700 14,0,000
4. aluminium sheets for 3000 pcs 50 15000
blades
5. downrods 1500 Set 30 45000

6 capacitor 1500 Set 50 75000

7-Ball bearings 1500 Set 40 60,000

8. regulators 1500 Set 10 15,000

 10. Insulating material LS 40,000
paint and varnish

11. Packaging material LS 8,000

12. Resistance Wire 1500 set 30 45000
with porcelain base
13. aluminum casting 1500 Set 50 75,000
For body and cover

Total 675000

Working Capital (per month)

(i) Personnel Qty. (Rs.)
1. Manager 1 20000
2. Skilled workers 5 50000
3. Un-skilled workers 5 40000
4. Typist/ Accountant 1 1,5000
5. Peon/Watchman 1 1,0000
135000
Perquisites @ 5% of Salary 6750
Total
Say 141750
(ii) Raw Material (per month)

(iii) Utilities (per month) (Rs.)

(i) Elecricity Charges 7,000
(ii) Water Charges 500
(iii) Advertisement/Postage 1,000
(iv) Transportation 2,500
Total 11,000

(iv) Working Capital (per month)

Raw Material + Personnel + Other Expenditure

675000+141750+11,000 = Rs. 8,27,750 .

Working Capital (for 3 months) Rs. 24,83,250

B. Total Capital Investment

(i) Fixed Capital Rs. 4,44,000

(ii) Working Capital (for 3 months) Rs. 24,83,250

Total Rs.29, 27,250

Financial Analysis

(1) Cost of Production (per annum) (Rs.)

2. Raw Material 81,00,000

3. Staff and Labor 17,01,000
4. Depreciation on Plant 44,400
and Machinery @10%
TOTAL 98,45,400

(2) Turnover (per annum) (Rs.)

By sale of 14,000 no's of ceiling fans total – 11200000/-

Ceiling Fan (1200 mm, ) at the rate of Rs. 800 each

(3) Net Profit (per annum) (Before taxes)

11200000- 9845400 = Rs. 1354600

(4) Net Profit Ratio

= 1354600 × 100 = 12.09%
112,00,000

(5) Rateof
= 46.27%
Return
= 1354600× 100

29,27,250

(6) Break-even Point

Fixed Cost (per annum) (Rs.)
1. Rent 0
2. Depreciation on machinery 44400
and Equipment @10%
3. Interest on total Capital 321997
investment @11%
4. 40% of Other Contingent Expenses 4,400
 5. 40% of Salary and Wages 56700
6. Depreciation on Office 2,500
Equipment and Furniture
Total 429997

B.E.P.

= Fixed Cost × 100

Fixed Cost + Profit

= 429997 × 100
429997 + 13,54,600

= 5,81,86,000
= 24.09%
19,71,860
Additional Information
a. The Project Profile may be modified/tailored to suit the individual entrepreneurship
qualities/capacity, production Program and also to suit the locational characteristics,
wherever applicable.

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.
Implementation Schedule
IMPLEMENTATION SCHEDULE:
i. Registration of Unit (EM-1) - One day.
ii. Loan Sanction (including TFR) -2 Months
iii. NOC-Pollution Control Board -1 Month
iv. Installation of machinery -1 Month
v. Power connection -1 Month
vi. Testing operation -1 Month
vii. Production -7 Month onwards.

Technical Aspect
TECHNICAL ASPECT
This Beauty soap will be manufactured as per the set formulation, Stated as
below, so as to have the skin friendly soap for daily use.

s.no Name of raw material

1 Coconut oil
2 Tallow
3 Caustic soda
4 Colour (green, blue, rose,orange,yellow,
etc)

Perfume mixtures for the soap

1 Bergamot oil
 2 Jasmine oil
3 Lavender oil
4 Palm rose oil
5 Lemon oil
6 Cedar wood oil
7 Tincture for musk

Manufacturing Process

Financial Aspects
Financial Analysis
Cost of Production (Per Annum)
Total recurring cost per year( i.e Working Capital for 12 months)

Depreciation on machinery & Equipment ( @ 10% )

Depreciation on Building ( @ 5 % )

Interest on total investment ( @ 10% ) [ Bank Loan Amount

Grand Total:
sales proceeds (per annum)
1 Land
2 Building
3 Plant & Machinery
4 Working Capital
Total
Profit Analysis (P.A.)
 Net Profit =[ Sales- Cost of Production ]= 47,39,280-38,69,950= 8,69,330.
Income Tax at 30%=2,60,799. Profit after tax=[8,69,330-2,60,799] =6,08,531/-

Rate of Return
On total sale =[ Profit * 100/Cost of Production] 6,08,531x100/38,69,950=
15.72 %. On total capital investment:= [ Profit * 100/Total Capital Investment]
6,08,531x100/15,30,000= 39.77 %

Break Even Analysis

Fixed Cost
Rent [ own building]
Total Depreciation[ Machinery & Building]
Interest on Total Investment
40 % of Salary & Wages[ 40000*12/ 40%]

40% of utilities & other contingent expenses [20000*12/ 40%]

Total:

Net Profit =6,08,531/-

Fixed Cost: 4,37,750/-
B.E.P= 4,37,750 x 100 / 4,37,750+6,08,531 =41.84 %

Financial Analysis

Manufactures/ Suppliers of Machinery

Suppliers of Raw Materials