Project Profile - BICYCLE CRACK FORGING

(A) INTRODUCTION:

         Cranks are used in chain wheel and crank set assembly of Bicycle. A set of two cranks i.e. R.H. and L.H. is required for a chain wheel set. Cranks are forged pieces made out of mild steel. Cranks are required by Chain wheel and crank set manufacturers. They in turn supply the set assembly to OE manufacturers as well as in the replacement market.

(B) MARKET:

         Bicycle industry is growing fastly with rising demand from domestic and exports market. Bi-cycle and rickshaw has remained a popular mode of transport in India for local traveling. Though with increasing urbanisation, motorcycle and scooter are becoming more popular still bicycle has maintained its position as a popular vehicle among lower income groups. Also with cycling becoming popular as fun and sport activity among youngsters and with increasing health consciousness the demand for racing as well as exercising bicycles is increasing day by day. The production of bicycles in India has increased from 5 million plus in 1986 to 11 million plus in the year 2000. India exporting around 2 million bicycles annually. The total world production of cycles in the year 2000 was reported to be 101 Million. As the chain wheel and crank is required as OE and spare part, therefore there is good market potential for crank forgings.

(C) BASIS AND PRESUMPTIONS:

(D) IMPLEMENTATION SCHEDULE

(E) TECHNICAL ASPECTS:

(1) Production Details & Process of Manufacture:

         Bicycle forgings are generally made out of M.S. Round Bar conforming to IS: 1875 Grade-I. However, these are also made out of High tensile steel materials for export market. The round bars are cut to the required length. On a power press. To make them suitable to feed in the reheating furnace. After proper heating, these are stamped forge on drop Forge Hammer. Then these forged pieces are trimmed off on power press. The operation of normalising is carried out in oil-fired furnace, particularly for high tensile material for improving mach inability. Finally the forgings are subjected to grinding to remove the sharp edges and these are ready for dispatch.

(2) Quality Specifications:

         BIS has laid down specification No, IS 1281: 1996 on Bicycle cranks and chain wheel.
         IS 1875:1992 specifies the suitable Raw Material for Forging.
         The quality should be maintained conforming to the relevant standards.

(3) Production capacity envisaged per annum:

         (a)          Quantity : 432000 Pairs. (Annual)
         (b)          Value : Rs

(4) Approximate Motive Power requirement:------- 68 KWH

(F) FINANCIAL ASPECTS:

I.) Fixed Capital:

         i) Land & Building:------Total covered area above 200 Sq. meters is required for the project, sufficient open space should also be available for storing raw materials.

On rental basis @ Rs. 10000 per month

         ii) Machinery & Equipment:

         iii) Pre-operative Expenses --------------Rs. 25000

         Total Fixed Assets (ii+iii) : -------------Rs. 2493500

II ) Working Capital (PM) :

         (i) Personnel

SI.No.	Designation	Nos.	Salary (Rs.)	Total (Rs.)
1.	Manager	1	10,000	10,000
2.	Supervisor / Foreman	1	7,000	7,000
3.	Skilled Worker	4	2,500	10,000
4.	Semi-skilled worker	2	2,000	4,000
5.	Un-skilled worker	5	1,500	7,500
6.	Watchman	1	1,500	1,500
7.	Peon	1	1,500	1,500
8.	Clerck cum typist	1	1,800	1,800
9.	Accountant	Part-time	800	800
	Sub-total			44,100
	Perks @15%			6,615
	Total			50,715

         Say = Rs. 50700