V - Belts and Fan Belts

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Product Code 41135 (V-BELTS)
Quality and Standards 41447 (FAN BELTS)
Quality and Standards IS 2494 :1993
Production Capacity V- Belts and Fan Belts 11,500 of various sizes, (per annum) worth Rs. 6900000
Uploaded on 22nd December 2006


With the rapid industrial growth in India, the demand for V-Belts and Fan Belts is increasing day by day. V-Belts are largely used in single or multiple form for automobiles, domestic and commercial equipment and in industrial drives for a wide range of horse power extending upward from a fractional value.

Market Potential

There is a good scope for starting new units in this line. V-Belts drives are becoming increasingly popular because of the trend towards individual drives which are efficient and easy to maintain.

Basis and Presumptions

  • The estimates are drawn for a production capacity generally considered techno-economically viable for a model type of manufacturing activity.
  • The information supplied is based on the standard type of manufacturing activities utilizing conventional techniques of production.
  • The cost of land and building, machinery and equipment, rawmaterials and selling price of the finished products etc. are those generally obtained at the time of preparation of project profile and may vary depending upon various factors.
  • Whereas some names of suppliers of machinery and equipment, raw-materials are indicated at the end of the profile, these are by no means exclusive or exhaustive.

Implementation Schedule

In the project, land and building has been taken as rented and as such there is no problem of acquisition of land and other formalities. The entire plant and machinery and other equipments have to be purchased and installed. It may take about 3 to 6 months on an average for a unit to go into regular production.

Technical Aspects

Process of Manufacture

Rubber along with other chemicals and fillers is compounded on a mixing mill. The compound is taken in a sheet form in varying thickness based on the type of V-Belts. Tyre cords are dipped in a dipping tank. Canvas is coated with rubber solution on a spreading machine and cut into sizes. Then the rubber compound sheet is taken on a forming machine. The rotating former round in shape comes in various sizes of diameter. The rubber sheet thus formed is followed by cord winding, rubber sheet, and so on as per specifications. When the forming is completed, it is cut into V-belts. These V-belts are removed from the former and each belt is wrapped with the coated canvas on a wrapping machine. These belts are mounted on split pulley and thus a number of pullies are stacked on each other and firmly bolted. The bolted pullies are wrapped tightly with a canvas. Then these are placed in a vulcaniser with a boiler attached to it. The belts are then marked and packed for marketing.

Financial Aspects

Fixed Capital

(i) Land and building

Total Area 2000 sq. mtrs.
Built-up Area 1000 sq. mtrs.
Rent 30000 per month

(ii) Machinery and Equipment



Value (Rs.)

Rubber Mixing Mill 12 inches ×30 inches, with 25 H.P. motor and reduction gear 1 400000
Vulcanising Chamber 1 50000
Hydraulic Presses with pump motor and other accessories 1 250000
Spreading machine 28 inches width 1 60000
Churning Mill 100 Lit. capacity 1 40000
Boiler 100 Kgs. Evp. Capacity 1 500000
Belt Building unit 2 50000
Testing equipments and Electrification   75000
Installation charges   200000
Cost of Moulds/fixtures   50000
Cost of office equipment and Working Tables etc.   100000
Pre-operative Expenses   100000
Total Fixed Capital 1875000

B. Working Capital (per month)

(i) Personnel

Sl. No.



Salary (Rs.)

Value (Rs.)

1 Manager 1 14000 14000
2 Accountant-cum-Cashier 1 5000 5000
3 Storekeeper 1 4000 4000
4 Clerk-cum-Typist 1 4000 4000
5 Peon 1 3000 3000
6 Chemist 1 5000 5000
7 Skilled Worker 5 3000 15000
8 Unskilled Worker 5 2500 12500
Total 62500
Prequisites @ 22% of salaries 13750
Total 76250

(ii) Raw Materials (per month)



Natural Rubber 1500 Kg. @ Rs. 80 per kg. 120000
Stearic Acid 30 kg. @ Rs. 55 per kg. 1650
Zinc Oxide 450 kg. @ Rs. 85 per kg. 38250
Carbon Black 135 kg. @ Rs. 60 per kg. 8100
Anti-oxidant/accelerator 60 kg. @ Rs. 325 per kg. 19500
Sulphur 75 kg. @ Rs. 12 per kg. 900
Processing aids like Paraffin Wax, Splindle Oil etc. 50 kg. @ Rs. 60 per kg. 3000
Canvas 1000 metres @ Rs. 60 per kg. 60000
Packing material 15000
Total 266400

(iii) Utilities (per month)



Power 6000
Fuel 10000
Water 5000
Total 21000

(iv) Other Contingent Expenses (per month)



Rent 30000
Postage, stationery 4000
Telephone 5000
Consumables 3000
Repair, maintenance 5000
Transport charges 8000
Advertisement and publicity 10000
Insurance 5000
Sales Expenses 20000
Taxes 8000
Miscellaneous expenses 8000
Total 106000

(v) Total Recurring Expenditure (per month)



Salary and Wages 76250
Raw-materials 266400
Utilities 21000
Other contingent expenses 106000
Total 469650

C. Total Capital Investment

Fixed Capital 1875000
Working Capital (for 3 Months) 1878600
Total 3753600

Machinery Utilisation

The proposed project under reference is based on a single shift basis with 8 hours working per day. But effective working hours will be 6 hours per day on single shift basis for calculation purposes i.e. on an average working at 75% utilization of machinery.

Financial Analysis

Cost of Production (per year)


Total recurring cost 4915800
Depreciation on machinery and equipment @ 10% 172500
Depreciation on moulds and fixtures @ 25% 12500
Depreciation on office equipment @ 20% 20000
Interest on total investment @ 12% 372474
Total 5493274

Turnover (per year)


By sale of V-Belt and 11,500 metres fan Belt of @ Rs. 600 assorted sizes per metre 6900000

Net Profit (per year)   6900000 - 5493274
Rate of Return  

Net profit ×100
Turnover per year



Net Profit Ratio   1406726


Break-even Point

Fixed Cost


Depreciation on machinery and equipment, tools, Fixtures and office equipment 205000
Rent 30000
Interest on total capital investment 372474
Insurance 60000
40% of salary and wages 348720
Other contingents excluding rent and insurance 340800
Total 1356994

B.E.P   1356994
----------------- x 100
1356994 + 1406726


Addresses of Machinery and Equipment Suppliers

  • M/s. Premier Industry
    Station Road, Sirhind,
  • M/s. Anant Industries
    Bassi Road, Sirhind.
  • M/s. Sunrise Industries
    Railway Road, Srihind.
  • M/s. Modern Tyre Moulds India Pvt. Ltd.
    Bhagat Singh Street,
    New Delhi-55.

Addresses of Raw Material Suppliers

  • M/s. ICI India Limited
    Post Box No. 310,
    Crescent House, Ballard Estate,
  • M/s. Bayer India Limited
    Nagin Mahal,
    Veer Nariman Road,
  • M/s. Monsento Chemicals of India Ltd.
    318, Asaf Ali Road,
    New Delhi.
  • M/s. United Carbon India Limited
    133, Mahatma Gandhi Road,
  • M/s. Kamani Metallic Oxide Limited
    Nicols Road, Kamani Chamber,
  • M/s. Kilachand Devachand Co. Pvt. Ltd.
    Rubber Dvn. 7,
    Jamshedji Tata Road,

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com