Blue Green Algae Biofertilizer
| 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 |
Introduction
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
Description |
No. |
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. |
Designation |
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)
(Rs) |
|
| 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)
(Rs) |
|
| Power | 6000 |
| Fuel | 10000 |
| Water | 5000 |
| Total | 21000 |
(iv) Other Contingent Expenses (per month)
(Rs) |
|
| 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)
(Rs) |
|
| 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) |
(Rs) |
| 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) |
(Rs.) |
| 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 = 1406726 |
|
| Rate of Return | Net profit ×100 = |
|
| Net Profit Ratio | 1406726 -----------x100 6900000 = 20.3% |
Break-even Point
Fixed Cost |
(Rs) |
| 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 = 49.1% |
Addresses of Machinery and Equipment Suppliers
- M/s. Premier Industry
Station Road, Sirhind,
(Punjab) - M/s. Anant Industries
Bassi Road, Sirhind.
(Punjab) - M/s. Sunrise Industries
Railway Road, Srihind.
(Punjab) - M/s. Modern Tyre Moulds India Pvt. Ltd.
Bhagat Singh Street,
Paharganj,
New Delhi-55.
Addresses of Raw Material Suppliers
- M/s. ICI India Limited
Post Box No. 310,
Crescent House, Ballard Estate,
Mumbai-110001. - M/s. Bayer India Limited
Nagin Mahal,
Veer Nariman Road,
Mumbai. - M/s. Monsento Chemicals of India Ltd.
318, Asaf Ali Road,
New Delhi. - M/s. United Carbon India Limited
133, Mahatma Gandhi Road,
Mumbai-110001. - M/s. Kamani Metallic Oxide Limited
Nicols Road, Kamani Chamber,
Mumbai-110001. - M/s. Kilachand Devachand Co. Pvt. Ltd.
Rubber Dvn. 7,
Jamshedji Tata Road,
Mumbai-110020.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
