Public Address Amplifiers

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Product Code (ASICC) 78202
Quality and Standards IS 10426 :1983
Production Capacity Qty. : 14400 Nos. (per annum)
Value : Rs. 3,35,01,000.
Uploaded on March 2007


Public Address Amplifiers, popularly known as sound systems, find extensive application at public meetings, social functions, religious places, schools and colleges, hotels, elections auditoria, etc. In this area considerable expertise has been built up in the country, particularly in the small scale sector. The item is reserved for manufacture in the small scale sector.

Market Potential

The total electronics production during 2001-02 is Rs. 12,700 crores compared to Rs. 7600 crores in 1996-97. Consumer electronics sector is the back bone of the electronics industry and contributes to onethird of the total electronics production.

With the indigenous availability of electronic components, the price of P.A. amplifiers has come down considerably. The demand of this item has been growing in line with the consumer electronics growth. It is felt that there will be substantial growth for this product in the years to come. There is also a great export potential for this product.

Basis and Presumptions

  • The basis for calculation of production capacity has been taken on two shift basis per day on 75% efficiency.
  • The maximum capacity utilization on single shift basis for 300 days a year. During first year and second year of operations the capacity utilization is 60% and 80% respectively. The unit is expected to achieve full capacity utilization from the third year
  • The salaries and wages, cost of raw materials, utilities, rents, etc. are base on the prevailing rates in and around Jaipur. These cost factors are likely to vary with time and location.
  • Interest on term loan and working capital loan has been taken at the rate of 16% on an average. This rate may vary depending upon the policy of the financial institutions/agencies from time to time.
  • The cost of machinery and equipments refer to a particular make/model and prices are approximate.
  • The break-even point percentage indicated is of full capacity utilization.
  • The project preparation cost etc. whenever required could be considered under pre-operative expenses.
  • The essential production machinery and test equipment required for the project have been indicated. The unit may also utilize common test facilities available at Electronics Test and Development Centres (ETDCs) and Electronic Regional Test Laboratories (ERTLs) set up by the State Governments and STQC Directorate of the Department of Information Technology, Ministry of Communication and Information Technology, to manufacture products conforming to Bureau of Indian Standards.

Implementation Schedule

The major activities in the implementation of the project has been listed and the average time for implementation of the project is estimated at 12 months

Name of Activity

Period in Months (Estimated)

Preparation of project report 1
Registration and other formalities 1
Sanction of loan by financial institutions 3
Plant and Machinery  
(i) Placement of orders 1
(ii) Procurement 2
(iii) Power connection/ Electrification 2
(iv) Installation/Erection of machinery/Test Equipment 2
Procurement of Raw materials 2
Recruitment of Technical Personnel etc. 2
Trial Production 11
Commercial Production 12


  • Many of the above activities shall be initiated concurrently.
  • Procurement of raw materials commences from the 8th month onwards.
  • When imported plant and machinery are required the implementation period of project may vary from 12 months to 15 months.

Technical Aspects

Process of Manufacture

Electronic components such as resistors, capacitors, diodes, transistors etc., are mounted on PCB cards. Each card is tested for gain, distortion, frequency response etc. All these cards are mounted in the chassis along with pre-tested transformer and power supply cards. The interconnections between the PCB's and for the front/back panel are done. The final assembly is again tested for output power, distortion, frequency response, impedance and noise level etc. The chassis is placed in a cabinet and is finally tested for the acoustical performance.

Quality Control and Standards

IS Specification IS 10426 :1983
Power rating 30/50 Watts.
Outputs Loud speakers of 4, 8 and 16 Ohms: 70V, 100V, via transformer free from earth.
Input Microphone : 4 inputs: 1.5mV/4.7 K ohms

Signal Processing

Distortion Less than 10% at rated output Signal/Noise ratio at 1 KHz: 60 dB.
Frequency response 60 Hz to 15 KHz ± 3dB
Tone control Bass control ± 60dB at 100 KHz
Treble control 6dB at 10 KHz±
Power Supply 230 V, 50 Hz AC

Production Capacity ( per annum)

Quantity Value (Rs.)
14,400 3,35,01,000
Motive Power 5 KVA

Pollution Control

The Govt. accords utmost importance to control environmental pollution. The small-scale entrepreneurs should have an environmental friendly attitude and adopt pollution control measures by process modification and technology substitution.

India having acceded to the Montreal Protocol in Sept. 1992, the production and use of Ozone Depleting Substances (ODS) like Chlorofluoro Carbon (CFC), Carbon Tetrachloride, Halons and Methyl Chloroform etc. need to be phased out immediately with alternative chemicals/solvents. A notification for detailed Rules to regulate ODS phase out under the Environment Protection Act, 1986 have been put in place with effect from 19th July 2000.

The following steps are suggested which may help to control pollution in electronics industry wherever applicable

  • In electronic industry fumes and gases are released during hand soldering/wave soldering/Dip soldering, which are harmful to people as well as environment and the end products. Alternate technologies may be used to phase out the existing polluting technologies. Numerous new fluxes have been developed containing 2-10% solids as opposed to the traditional 15-35% solids.
  • Electronic industry uses CFC, Carbon Tetrachloride and Methyl Chloroform for cleaning of printed circuit boards after assembly to remove flux residues left after soldering, and various kinds of foams for packaging.

    Many alternative solvents could replace CFC-113 and Methyl Chloroform in electronics cleaning. Other Chlorinated solvents such as Trichloroethylene, Perchloroethylene and Methylene Chloride have been used as effective cleaners in electronics industry for many years. Other organic solvents such as Ketones and Alcohols are effective in removing both solder fluxes and many polar contaminants.

Energy Conservation

With the growing energy needs and shortage coupled with rising energy cost, a greater thrust in energy efficiency in industrial sector has been given by the Govt. of India since 1980s. The Energy Conservation Act, 2001 has been enacted on 18th August'2001, which provides for efficient use of energy, its conservation and capacity building of Bureau of Energy Efficiency created under the Act.

The following steps may help forconservation of electrical energy

  • Adoption of energy conserving technologies, production aids and testing facilities.
  • Efficient management of process/ manufacturing machineries and systems, QC and testing equipments for yielding maximum Energy Conservation.
  • Optimum use of electrical energy for heating during soldering process can be obtained by using efficient temperature controlled soldering and desoldering stations.
  • Periodical maintenance of motors, compressors etc.
  • Use of power factor correction capacitors. Proper selection and layout of lighting system; timely switching on-off of the lights; use of compact fluorescent lamps wherever possible etc.

Financial Aspects

Fixed Capital

Land and Building
Land: 500 Sq. Mtr @ Rs. 3500 /sq. Mtr Value Rs. 17,50,000

Civil Construction; Boundary wall and gates,

Office, Stores, security room, workers room, working shed , bore well for water, raw water and finished product storage. 400 Sq. Mtr. @ Rs. 7000/ sq. Mtr Rs. 28,00,000

Civil construction cost

Rs. 4,00,000

Total land & building cost (a) + (b) Rs. 50,50,000

Machinery and Testing Equipments


Ind./ Imp.


Total (Rs.)

Drilling Machine (1/2²) Ind. 1 15,000
Bench Grinder Ind. 1 15,000
Oscilloscope (20 MHz Dual Trace) Ind. 1 50,000
Allied equipments like Microphones, sound columns Ind. 2 each 20,000
DC Regulated power supply (30 V, 2A) Ind. 2 25,000
3½ Digit Digital multimeter and analog multimeter Ind. 2 25,000
Bore well and water in the complex     3,00,000
Audio Test System (Consisting of distortion factor meter, signal generator, level meter and output power meter) Ind. 2 sets 1,00,000
Digital LCR/Q Meter Ind. 1 50,000
Insulation Tester (500 V) Ind. 1 20,000
Total 6,20,000
Electrification and Installation charges @ 40% of the cost of machinery and equipment as required     2,48,000
Cost of office equipment working tables, computers, telephones etc.     5,00,000
Cost of moulds/ fixtures/tools and jigs     1,00,000
Total Plant and m/c cost 14,68,000
Pre operative expenses 2,00,000
Total Fixed Cost (i) + (ii) + (iii) Rs. 50,50,000 + 14,68,000 + 2,00,000 67,18,000

B. Working Capital (per month)

(i) Staff and Labour


No. of persons

Salary (Rs.)

Total (Rs.)

Manager 1 25,000 25,000
Commercial staff of purchase, sales and accounts 8   50,000
Peon and chowkidars 4 3,000 12,000
Supervisor 3 6,000 18,000
Skilled Worker 10 5,000 50,000
Semi-Skilled Worker 12 4,000 48,000
Unskilled Worker 5 3,000 15,000
Total 2,18,000
Perquisites @ 22% of Salaries 48,000
Total 2,66,000

(ii) Raw Material Requirement (per month)



Value (Rs.)

Transformers (set of 3) Mains/ Output/Driver 1 set 600
Transistors (set of 15) (Power/ Low frequency) 1 set 150
Capacitors (a set of 25) (Electrolytic, Ceramic Polyester) 1 set 95
Printed Circuit Board (a set of 2) 1 set 75
Diodes (a set of 10) 1 set 24
Switch (DPDT) 1 set 25
Connectors ¾ Nos. set 1 set 80
Terminals strip (2/4 way) 1 set 14
Slide Switch ( 3 way) 1 set 14
Resistors (a set of 50 Nos.) 1 set 20
Volume control (a set of 5 Nos.) 1 set 80
Mains Lead 1 No. 30
Chassis with plastic parts/hardware and front anodized aluminium plate 1 No. 250
Package etc. 1 No. 55
Total 1512
Total Value of Raw Materials Required (per month) =1200 x 1512 Rs. 18,14,000

(iii) Utilities (per month)

Power 8,000
Water 2,000
Total 10,000

(iv) Other Contingent Expenses (per month)



Postage and Stationery 5000
Telephone and communications 15,000
Consumable stores 15,000
Repairs and Maintenance 5,000
Transport charges 20,000
Advertisement, publicity expenses 15,000
Insurance 4,000
Sales expenses 50,000
Misc. expenses 10,000
Total 1,39,000

Total Recurring Expenditure/month (i + ii + iii + iv )

= Rs. 2,66,000 + Rs. 18,14,000 + Rs. 10,000 + Rs. 1,39,000

= Rs.22,29,000

C. Total Capital Investment

Fixed capital Rs. 67,18,000
Working capital for 3 months Rs. 66,87,000
Total Rs. 1,34,05,000

Financial Analysis

Cost of Production (per annum)


Total recurring expenditure 2,67,48,000
Depreciation on machinery and equipment @ 10% 10,000
Depreciation on civil constn. @ 5% 14,000
Depreciation on office equipments & tools and fixtures 20% 1,20,000
Interest on total investment @ 12% 16,09,000
Total 2,85,01,000

Turnover (per annum)

Item Qty.(Nos.) Rate/Unit (Rs.) Total Sales (Rs.)
Public Address Amplifier 14,400 2188 3,35,01,000

Net Profit/year (Before Tax)    


  Rs. 3,35,01,000 – Rs. 2,85,01,000

Net Profit Ratio


Net Profit per year x 100

Turnover per year

  50,00,000 x 100

Rate of Return


Net Profit per year x 100

Total Investment

  50,00,000 x 100

Break-even Point

Fixed Cost (per annum)


Depreciation on machinery and equipment (Tools, fixtures and office equipment) 1,44,000
Interest on total investment 16,09,000
40% of Salary and wages 12,77,000
40% of other contingent expenses and utilities 6,67,000
Total 36,97,000
B.E.P Fixed Cost × 100
Fixed Cost + Net Profit
  36,97,000 × 100
  36,97,000 + 50,00,000

Additional Information

  • The Project Profile may be modified/tailored to suit the individual entrepreneurship qualities/capacity, production programme and also to suit the locational characteristics, wherever applicable.
  • The Electronics Technology is undergoing rapid strides of change and there is need for regular monitoring of the national and international technology scenario. The unit may, therefore, keep abreast with the new technologies in order to keep them in pace with the developments for global competition.
  • Quality today is not only confined to the product or service alone.It also extends to the process and environment in which they are generated. The ISO 9000 defines standards for Quality Management Systems and ISO 14001 defines standards for Environmental Management System for acceptability at international level. The unit may therefore adopt these standards for global competition.
  • The margin money recommended is 25% of the working capital requirement at an average. However, the percentage of margin money may vary as per bank's discretion.

Addresses of Machinery and Equipment Suppliers

  • M/s. Applied Electronics Ltd.
    (Aplab), 4th Floor,
    4E/14, Jhandewalan Extension,
    New Delhi - 110 055.
  • M/s. Toshniwal Brothers (Delhi) Pvt. Ltd.
    3E/8, Jhandewalan Extension,
    New Delhi - 110 055.
  • M/s. Unitron Limited
    I, Industrial Area, N.I.T.
    Faridabad - 121 001.
  • M/s. Automatic Electric Ltd.
    Rectifier House,
    570, Naigum Cross Road, Wadala,
    P.O. Box. 7103,
    Mumbai - 400 031.
  • M/s. British Physical Laboratories India Limited
    304, Ashok Bhawan,
    93, Nehru Place,
    New Delhi – 110 019.
  • M/s. Philips
    68, Shivaji Marg,
    New Delhi.
  • M/s. Systronics,
    202, 1206, Harsha House,
    Near Milan Cinema,
    Karampura Road,
    New Delhi – 110 015.
  • M/s. Orient Corporation
    (For Tools)
    423/424, Shah and Nahar Estate
    (A-2), Lower Parel (W),
    Mumbai – 400 013.
  • M/s. Noble Electronics
    354, Lajpat Rai Market,

Raw Material Suppliers

  • M/s. Hindustan Conductors Ltd.
    (Solid State Devices),
    306 and 307, B.M.C. House,
    N-1-Block, Middle Circles,
    Connaught Circus,
    New Delhi – 110 001.
  • M/s. Murugappa Electronics Ltd.
    Industrial Products Division,
    Plot No. 66, Door No. 3,
    Thiruvalluvar Salai,
    Chennai - 600 001.
  • M/s. Pecco Electronics and
    Electricals Limited
    68, Shivaji Marg,
    New Delhi – 110 015.
  • M/s. Usha Rectifier Corporation
    (India) Limited
    Jeevan Tara Building,
    Parliament Street,
    New Delhi – 110 001.
  • M/s. Precision Electronics
    Components Mfg. Co.
    1-3-1-31, Lower Tank,
    Bond Road, Kavadiguda,
  • M/s. Keltron,
    Keltron Chambers,
    18/7, Arya Samaj Road,
    Karol Bagh,
    New Delhi–110 005
  • M/s. Bharat Electronics Ltd.
    Jalahalli Post,
  • M/s. Semi Conductors
    Phase–8, SAS Nagar,
  • M/s. Electronics Trade and
    Technology Development Corpn.
    15/48 Malcha Marg,
    New Delhi

For further information please contact

Information Manager
TIMEIS Project