PROJECT PROFILE ON MANUFACTURING OF AGRICULTURAL IMPLEMENTS

I. Product

         The extent of present day use of agriculture machinery in a basically agricultural country like ours needs no introduction. Apart from various agricultural implements, power operated agricultural machinery such as maize Sheller for removing the grains from maize cobs, seed cleaners, used for small lots of seed for cleaning-cum-grinding. Rice Polisher and seed treaters are some other agricultural machines which have field application in agriculture.

II. Market Potential

         With the rural electrification, the availability of power to agriculture sector is quite promising. Electrification will entail power mechanization of agriculture sector and there exists a good scope for these machineries.

III. Production Targets

         The project profile envisages the manufacture of following agricultural implements per annum.

         Wheat & Rice threshers up to 5 hp motive power and other machineries

         However, the production schedule can be changed keeping in view the market requirements.

IV. Basis and Assumptions

         1.          The Project Profile has been prepared on the basis of single shift of 8 hours and 75% efficiency.

         2.          The rental value of the Workshop shed has been taken at Rs.10 per sq.meter.
         3.          The costs of machinery and equipment as indicated in the profile refer to a particular make and the prices are approximate those ruling at the time of preparation of this report.

         4.          The provisions made in respect of raw materials, personnel, utilities and overheads etc. have been provided at the prevailing rates and are approximate only.

         5.          The rate of interest has been taken on the basis of 12% per annum.

         6.          The break-even point has been worked out on the basis of full capacity utilization.

V. Production Details and Process of Manufacture

         The processes involved are Shearing, folding, forming, etc. for sheet metal work and cutting, turning, drilling for casting and bars. Welding and fitting assemble the different components.

VI. Quality Control

         The following Indian Standard Specifications may be followed for quality control:

1. IS: 6320-1971 for Threshers
2. IS: 6813-1973 for Seed-cum-Fertilizer Drill
  IS: 3939-1979 & IS: 7051 - 1973 for manual and power operated Maize Sheller’s respectively.

VII. Pollution Control

         Manufacturing of agriculture implements will not create any environment pollution and hence no need of any pollution control measures in the unit.

VIII. Energy Conservation

         The machineries envisaged to manufacture in this profile is not a high energy consuming industry. However certain measures like saving of electrical energy will do good savings for unit.

IX. Land and Building (Rented)

         Covered area 300 sq.metre = Rs.3, 000/- p.m

X Machinery and Equipment

SI.No.
 Name Of Machinery/Equipments
Qty.
Amount (Rs.)
1.
 Precision Center Lathe height of centers 240 mm, length of bed 2400 mm with 3 HP Motor
1 No.
70,000
2.
 Universal Shaper Stroke 600 mm with speed change gears with motor etc.
1 No.
55,000
3.
 Center Lathe of height of center 150 mm length of bed 120 mm
1 No.
35,000
4.
 Double Ended Bench Grinder wheel dia 200 mm
1 No.
6,500
5.
 Pillar Drilling Machine 25 mm with 1 HP motor
1 No.
10,000
6.
 Gas Welding Set welding torch, gas hose etc.
1 set
17,000
7.
 Arc Welding Set Transformer type 300 Amps with all accessories.
1 set
12,000
8.
 Air Compressor with spray painting equipment 100 psi. with motor and other standard equipments
1 No.
24,000
9.
 Sheet Folding Machine, Hand operated 1200 mm/Brake Press
1 No.
10,000
10.
 Hand ‘Fly’ Press No.3
1 No.
5,000
11.
 Bench Drilling Machine 12 mm
1 No.
3,500
12.
 Hand Tools, measuring instruments minor equipments, such as flexible shaft grinder, portable drill etc.
---
12,000
 
 Total
 
2,60,000
13.
 Erection and Installation charges - 10%
---
26,000
14.
 Office equipment and furniture
---
25,000
15
 Pre-operative expenses
---
20,000
 
 Say
 
3,31,000

XI. Staff and Labour (per month)

1.
 Manager
1 No.
3,500
2.
 Foreman
1 No.
3,000
3.
 Draughtsman
1 No.
2,500
4.
 Clerk/Store Keeper
2 No.
4,000
5.
 Peon
1 No.
1,000
6.
 Watchman
1 No.
1,000
7.
 Machine Operator@ Rs 2000/
6 No.
12,000
8.
 Fitter @ Rs 2000/-
2 No.
4,000
9.
 Helpers
2 No.
1,000
 
Total
 
32,000
 
20% staff welfare
 
6,400
 
Total
 
70,400

XII. Raw Materials (per month)

1.
 M.S Sheets, G.I Sheets, , Screws, Bolts, M.S Bright bars, Plumber, block, bearings, angle iron, channels-2. tones
50,000
2.
 C.I Castings 1Tonne
26,000
3.
 Indirect materials such as Lubricants, paints, cutting tools, emery paper etc.
4,000
 
 Total
Rs.80,000

XIII. Utilities

1.
 Power and Water
4,000
2.
 Consumables coal etc.
1,000
 
 Total
Rs.5,000

XIV. Other Expenditure (per month)

1.
 Rent
3,000
2.
 Postage and Stationery
1,000
3.
 Freight/carriage charges
2,000
4.
 Advertisement and Publicity
5,000
5.
 Traveling expenses
3,000
6.
 Repairs and Maintenance
1,000
7.
 Misc./contingencies
1,000
 
 Total
16,000

XV. Working Capital (per month)

1.
 Raw Materials
80,000
2.
 Staff and Labour
70,400
3.
 Utilities
5,000
4.
 Other Expenses
16,000
 
 Total
Rs.1,71,400

XVI. Total Capital Investment (per month)

1.
 Machinery and equipment
3,31,000
2.
 Working capital for three months
5,14,200
 
 Total
Rs. 845,200

XVII. Cost of Production (per annum)

1.
 Raw materials
9,60,000
2.
 Staff and Labour
8,44,800
3.
 Utilities
60,000
4.
 Other expenditure
1,92,000
5.
 Depreciation on machineries and equipments @ 10%
26,000
6.
 Depreciation on furniture and others 25%
17,750
7.
 Interest of capital investment @ 12% per annum
1,01,424
 
 Total
22,01,974
 
 Say
Rs.22,02,000

XVIII. Total Sales (per annum)

         By Sale of

1.
 Maize Shellers 70 Nos. @ Rs.5000/- each
3,50,000
2.
 Wheat Thrashers 100 Nos. @ Rs.10,000/- each
10,00,000
3.
 Seed Drills 150 Nos. @ Rs.5,000/- each
7,50,000
4.
 Other agro-Machineries on order
5,00,000
5.
 Sale of scrap
50,000
 
 Total
Rs.26,50,000

XIX. Profitability (per annum)

Annual Profit    = 26, 50,000 - 22, 02,000

                       = Rs. 4,48,000

Profit on sale   = 448000 x 100 / 26, 50,000

                       = 16%

% Return on Capital Investment = 448000x 100 / 845,200

                  = 53%

XX. Break Even Analysis

         Fixed Cost (per annum)

1.
 Rent
36,000
2.
 40% of staff and labour
3,37,920
3.
 40% of utilities and other expenses (excluding rent)
86,400
4.
 Depreciation on machinery and equipments
43,750
5.
 Interest on capital investment
1,01,424
 
 Total
6,05,494
 
 Say
Rs.6,05,500

B.E.P     = FIXED COST X 100 / FIXED COST+PROFIT

B.E.P     = 605,500 x 100 / 605,500+ 448000

             = 57%

Names and Addresses of Suppliers of Machinery and Equipments

         1.          M/s. Batliboi & Co.
                      Forbes Street
                      Fort, Mumbai 400 001

         2.          M/s. Perfect Machine Tools Pvt. Ltd.
                      Bell Building, Sir P.M. Road
                      Mumbai 400 001

         3.          M/s. Quality Machine Tools
                      J.C. Road
                      Bangalore

         4.          M/s. Daulat Industrial Corporation (P) Ltd.
                      P.B. No.309, Civil Lines
                      Ludhiana.

         5.          M/s. B.P. Engineering Co.
                      13-A Industrial Estate
                      Batala.

         6.          M/s. Ram Bros. Pvt. Ltd.
                      Basti Bawakhel
                      Jalandhar

         7.          M/s. Vee Kay Industries
                      5-B Textile Colony
                      Industrial Area-A
                      Ludhiana.

Names and Addresses of Supplier of Raw Materials

         1.          M/s. Mahata Mammal Chanmaliji & Co.
                      87-88 Kika Street, Mumbai 400 004

         2.          M/s. Agarwal Traders & Engineers
                      129 Abdul Rehman Street
                      Mumbai 400 003

         3.          M/s. Nearest Branch of Steel Authority of India Lted.