PROJECT PROFILE : PINS FOR AUTOMOBILES

 

A. Introduction

Automobile is an emerging sector in India. With the influx of multinationals like SUZUI, HONDA,MAZDA, FORD,KAWASAKI, DAEWOO, MERCEDEZE, VESPA etc. in Indian Automobile Industry, a floor of various vehicles i.e. cars, motorcycles, scooters, tractors, & commercial vehicles with their different models and designs has come in the market.

The automobile manufacturers mostly manufacture major parts of the vehicles themselves whereas various small & ancillary parts/components are procured from outside sources including ancillary units. The production of all the parts and components by any automobile manufacture may not be feasible and viable. It has been observed that a significant number of pins of various designs/specifications are used in almost each and every model of vehicle right from two wheelers to four wheelers and other special purpose/commercial vehicle. These pins may be the hub pins, valve pins, shaft pins, gear pins, suspension system pins, transmission system pins, cam pins, pump pins and gudgeon pins etc. The report deals with manufacture of various kinds of automobile pins.

 

B. Market Potential

With the significant use and production of various vehicle in the country including two wheelers, four wheelers and commercial vehicles, the demand of various automobile components and parts has remarkably increased both for captive and spares market. This has further stepped up and is likely to grow. The demand of automobile components is directly linked with the production, use and maintenance of the automobiles, may be it is a car, scooter, jeep tractor or any other commercial vehicles. In view of the above there is a good market demand for OEM and replacement market throughout the country besides export as the pins are regularly prove to wear and tear due to their extensive use.

PRODUCTION TARGET (PER ANNUM )

The project profile envisages the manufacture of following items :-

a. Gudgeon pins for scooter, M/cycle Moped & three wheelers – 200000 Nos.
b. Engine pins like case shaft pins, valve, pump slip and gear pins – 400000 Nos.
c. Two wheeler/four wheeler & commercial pins like hub , gear, tie rod, shaft, valve pins etc. – 200000 Nos.
d. Gudgeon pins for four wheelers & commercial vehicles – 100000 Nos.

 

BASIC & PRESUMPTIONS:

1. This project profile is based on 6 working hours in a day and 25 days in a month and the break even efficiency has been calculated on 75% capacity utilization basis.
2. The normal wages and salaries being paid in the industry to various grades of personnel have been considered and also the provision of minimum wages has been taken into care.
3. The rate of interest both for fixed and working capital has been taken as 10% p.a.

 

D. Implementation Schedule:

S. No. Name of activity Approximate Period required
1 Market Survey 10-30 days
2 Procurement of know how / experts 20 to 30 days
3 Preparation of project report. 15 days
4 Registration & finance 45 to 60 days
5 Recruitment of personnel & training -do-
6 Procurement of machines, equipments and other inputs 60 to 90 days
7 Commissioning of plant / project 30 days.
8 Procurement of raw materials, consumables, packing materials etc. 30 to 45 days
9 Trial production / commercial production 7 to 15 days.

 

 

Technical Aspects:

The production of auto pins involve various operations such as tunning on auto/Colette lathe of drawn wire / rod Hardening, tempering, centreless grinding and testing.
  In few designs the work of milling machinery may also be involved. This process is carried out before carrying out heat treatment of the pins. The following IS Specifications have been laid down by BIS for manufacturers of automobile pins. Besides this the designs/ specifications and other technical requirements have been also specified by the concerned automobile manufacturers for which the pins are to be produced. These specifications should be followed for manufacturing good quality products

The list of IS specifications is given below :-

i) IS : 6740 – Gudgeon pins for IC Engines.
ii) IS : 6763 – Specification & testing of fifth wheel king pins for trailors.
iii) IS: 2393 – Cylindrical pins.
iv) IS : 6689 – Cylindrical pins hardened.
v) IS : 11952 – Steel for gudgeon pins.

This profile envisages production of 9000000 Nos. of auto pins of assorted sizes for various applications of different vehicles per annum . The motive power required for the project will be to the tune of about 45 KW.

 

FINANCIAL ASPECTS:

1. Fixed Capital Rs. in lacs
i) Land & Building  
) Land : 500 Sq. Meter
@ Rs. 1000/- per Sq. Mtr.
 5.0 lacs
b) Building

x. Covered Area 300 Sq, Meter
y. Un covered area 200 sq. meter

 

 

Covered Area
RCC/Brick Work
  
a) Office block 40 Sq. meter       )
b) Testing 60 Sq, Meter              )
finished goods store, time office   ) 100 Sq, Meter
Guard Room Total RCC-Brick   )
construction 100 Sq, Meter        )
@ 3000/- Sq. Meter
 3.0 lacs

Workshed with brick work and cement corrugated sheets

a. Workshop for H. Treatment Section 70 Sq. Mtr
b. Workshop for production section 100 sq, meter
Total Area 170 Sq. Meter
@ Rs. 2000/- per sq. meter 3.4 lac
Boundry wall & gate etc 0.6 lac
Total 7.0 lacs
Grand Total 12.0 lacs

 

MACHINERY & EQUIPMENTS

S No DESCRIPTION OF MACHINERY NOS AMOUNT in Rs.
1 Bull Bocl type Bar drawing machine cap. 40 mm complete with 5 HP motor, Gear Box accessories and electricals 1 100000/-
2 Centreless grinding machine cap 3-50 mm die complete with 3 HP motor electricals and accessories. 1 200000/-
3 Duplex grinding machine max. size 150mm Complete with 3 HP motor electricals and accessories 1 750000/-
4 Automatic lathe single spindle with multi functions 40mm max dia complete with 3 HP motor electricals & accessories. 1 175000/-
5 Automatic lathe single spindle with multifunctions, 25mm max dia complete with 2.5 HP motor & electrical accessories. 1 280000/-
6 Med duty milling machine horizontal type working surface 500X 150mm, longitudinal traverse 330mm cross traverse 340mm with 2 HP motor electrical accessories 1 75000/-
7 Lathe machine light duty collate/ adda type size 50 mm centre to centre 300 mm complete with 1 HP motor electricals and accessories 2 50000/-
8 Salt bath furnace oil fired pot size 18” X 24” complete with attachments and accessories 1 100000/-
9 Circulation furnace chamber size 1000mm X 400mm 15 KW cap with complete with tem controller indicator electrical & accessories 1 125000/-
10 Washing machine tank size 900mm X 400mm complete with 2 HP motor, water pump pipe line electricals & accessories 1 25000/-
11 Wire painting machine max size 40mm 2 HP motorized
1 20000
12 O.E. Bench grinder 200mm wheel dia 1 HP motorized 1 4000
13 Bench drilling machine ¾” cap 1.5 HP Motirised 1 6000
14 Tool Brazing equipment with accessories 1 1500
15 Chain Pulley block with overhead railing system 1 20000
16 Centre lathe med duty centre to centre distance 1000mm centre ht 230mm 2 HP motorized with elect. & accessories 1 75000
B Testing Unit
a Rockwell hardness testing machine 1 20000
b Strohlens apparatus with accessories 1 20000
c Metallurgical microscope mag. X 50 1 30000
d Glass apparatus with small myffle furnace 300 mmx 250mm and Not plate 1 10000
e Portable ultraround testing 1 70000
f Polishing machine with 1.5 HP motor 1 25000
g Measuring instruments & gauges etc. . LS 20000
h Pollution instruments and gauges etc
i) Electrification and installation charges   152000
ii) Cost of office equipments work benches and furniture etc.   25000
iii) Cost of fixture jigs and dies etc.   50000
Total :  16,01 , 500/-
Preoperative expenses :  25000/-
Grand Total :  16,26,500/-

 

WORKING CAPITAL (Per month).
Salary & Wages (per month)

S. No. Designation No. TOTAL COST
1 Manager (Technical) 1 12000/-
2 Supervisor (Production /QC) 2 2 12000/-
3 Salesman 2 8000/-
4 Accountant/Commercial Assistance 1 4000/-
5 Clerk 1 3000/-
6 Peon / Chowkidar 1 2000/-
7 Sweeper 1 2000/-
8 Skilled Workers 10 40000/-
9 Helpers 5 10000/-
    Total 92000/-
    Perks @ 15% 14000/-
    Grand Total 106000/-

Utilisation (per month)

1 Power – 5500KWH @ 4/- KW Rs. 22000/-
2 Water 500 KL @ 2/-KL Rs. 1000/-
3 LDO Rs. 6000/-
  Total :   29000/-

Other Expenses (per month)

1 Postage Stationery & Telephone 2000/-
2 Comsumables 3000/-
3 Repair & Maintenance 2000/-
4 Transportation & T.E.. 3000/-
5 Advt. & Publicity 2000/-
6 Insurances 600/-
7 Sales Expenses 4000/-
8 Misc Expenses 2000/-
  TOTAL:  18600/-

Total Recurrint Expediture (Per month)

1 Raw Materials 395000/-
2 Staff & Labour 106000/-
3 Utilities 29 000/-
4 Other expenses 18600/-
  TOTAL :  548600/-

Total Capital Investment

1 Land & Building 1200000/-
2 Plant & Machinery 1626500/-
3 Working Capital 1097200/-
  TOTAL :  1097200/-
  WC for 2 months =  3923700/-

Annual Cost Of Production (P.A.)

1 Recurring Cost 6583200/-
2 Depreciation on Bldg@ 05% 35000/-
3 Depreciation Machinery@10% 53000/-
4 Depreciation on furniture@20% 15000/-
5 Interest @ 10@ on Capital Investment 392370/-
  TOTAL 7178570/-
  Or say 7179000/-

Turnover (per annum)

1 Sale of Gudgeon for various vehicles 2 lac @ 9/- each   1800000/-
2 Engine Pins 4 lacs @ Rs. 9/- each   3600000/-
3 Other pins like gear , tie rod, colter, valve & hub pins 2lac @ Rs. 9/- each   1800000/-
4 Gudgeon pins for 4 wheelers/Comml vehicle 1 lac @ 11/- each   1100000/-
5 Scrap 1 Ton @ 10000/- Ton   10000/-
  TOTAL   8300000/-

NET PROFIT PER YEAR        Rs. 1121000/-

PERCENTAGE OF PROFITE
            %Age of Profit on Sales          =13.5%
           % age of profit on investment   = 28.56%

BREAK EVEN POINT      =      54.2 %

 

NAMES & ADDRESSES OF MACHINE SUPPLIERS

1. International Machine Tools, 5, Bank Street, Fort, Mumbai
2. Batliboi & Co (P) Ltd., Maharani Road, Indore
3. Atlas Works (P) Ltd., Kolkata
4. Gujarat Small Industries Corporation Ltd., Ahmedabad

NAME & ADDRESS OF RAW MATERIAL SUPPLIERS

1. Steel Authority of India Ltd (Local Depot)