Electronic Quartz Analog Clocks

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Product Code (ASICC) 91403
Quality and Standards N.A.
Production Capacity Qty. : 1,80,000 Nos. (per annum)
Value : Rs. 2,20,00,000
Uploaded on March 2007


The electronic quartz analog clock has brought a revolution in the clock industry. The quartz clocks were introduced in the Indian market in 1977- 78 and since then market as well as production in India has been growing at a tremendous rate. Some of the main features of the quartz clock are; high accuracy, no winding required, works in any position, very low power consumption, hardly any service required and the longer life of the clock.

Market Potential

Consumer electronic sector has achieved a production of Rs. 127000 crore in 2001-02 compared to Rs. 26000 crore production in 1996-97. During the year 2001, the production of electronic clock was of the order of Rs 210 crores.

The electronic Quartz Clocks are technically superior to the mechanical ones. Since the raw materials and components are available at a cheaper rate, the price of the electronic clocks has come down substantially. This reduction in prices has boosted the demand.

Pricing of Quartz Analogy Clocks

The customer price of Clock ranges from Rs. 60 to Rs. 450. Different types of clocks in the market, and their prices are as follows

Type of Quartz Clocks

Price Range (Rs.)

Ordinary Plastic Case 60 - 80
Good finished Plastic case and Anodized Dial 80 -150
Ordinary Picture 100 -150
Laminated Picture 180 - 250
Striking (Ordinary) 200 - 300
Striking (Quadraphonic) 280 -380
Pendulum (Simple) 250 -350
Pendulum Striking 300 - 450

Basis and Presumptions

  • The basis for calculation of production capacity has been taken on single shift basis on 75% efficiency.
  • The maximum capacity utilization on two shifts basis of 8 hrs. each 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 onwards.
  • The salaries and wages, cost of raw materials, utilities, rents, etc. are base on the prevailing rates. 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 12% 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

The Quartz wall clock will be assembled and for assembly other raw materials such as quartz clock movement, Cabinet, hand etc., will be purchased from the market. In this project profile, it is assumed that the complete Quartz movement is procured from outside. The movement is fitted into Cabinet case which is fitted with dial and the hands are mounted on the movement and after the glass and back cover of Cabinet are fitted. The needles have to be properly fitted at accurate position on dial which shows time. Finally, the battery should be put into the clocks put for testing for at least 2 days before despatch.

Production Capacity ( per annum)


Value (Rs.)

1,80,000 Nos. 2,20,00,000
Motive Power 15 KW

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 for conservation 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 300 Sq.Mtr @ 3500/ Sq. Mtr Value Rs. 10,50,000

Civil construction

Boundry wall, gates and road inside the factory Value

Built up area = 500 Sq. Mtrs for office, stores, assembly and testing, security room, workers room, bore well and water, raw material and finished goods store on two floors @ Rs. 6000 / Sq. mtr Value

Rs. 4,00,000

Total civil cost = 10,50,000 + 4,00,000 + 30,00,000 Rs.44,50,000

Machinery and Equipments


Ind./ Imp.


Value (Rs.)

Quartz Clock Tester Ind. 3 1,50,000
Digital Multimeter (3 ½ Digit) Ind. 4 30,000
Total 1,80,000
Other Fixed Assets
Excise, sales tax and electrification charges @ 40% of the cost of machinery and equipment.     72,000
Office equipments, furniture and working table etc.     2,00,000
Tools, jigs and fixtures, soldering iron/station etc.     50,000
Total plant and m/c 5,02,000
Pre operative expenses 1,00,000
Total Fixed Capital 50,52,000

B. Working Capital (per month)

(i) Staff and Labour


No. of persons

Salary (Rs.)

Total (Rs.)

Manager 1 30,000 30,000
Sales and Service Assistance 1 15,000 15,000
Purchase and commercial staff 4   20,000
Peon/ Watchman 3   9,000
Skilled Workers 6   24,000
Semi-Skilled Workers 2   6,000
Total     1,04,000
Add perquisites @ 22% of salary     23000
Total       1,27,000

(ii) Raw Material Requirement (per month)



Cost/unit (Rs.)

Total 15000 unit (Rs.)

Quartz Movement (Complete) 1 40 6,00,000
Case (Cabinet) with Dial and Hands (Appear-ance Parts) with packaging 1 50 7,50,000
Total 13,50,000

Note: The quantity and quality of raw material vary with design requirements and features of the Clock.

Utility expenses for water and power = Rs. 8,000

(iv) Other Contingent Expenses (per month)


Value (Rs.)

Postage and stationery 5000
Telephone and communication expenses 5000
Repair and maintenance 5000
Transport and conveyance charges 10000
Advt. and publicity 20000
Insurance and taxes 4000
Consumable Stores 2000
Miscellaneous expenditure 5000
Total 56000
Total Recurring Expenditure Rs (per month)
(i + ii + iii + iv)
Rs. 1,04,000 + Rs. 13,50,000 + Rs. 8,000, Rs. 56,000
Rs. 15,18,000

C. Total Capital Investment

Fixed capital Rs. 50,52,000
Working Capital on 3 months basis Rs. 45,54,000
Total Rs. 96,06,000

Financial Analysis

Cost of Production (per annum)


Total recurring expenditure 1,82,16,000
Depreciation on Pl. & m/c @ 10 % 25,000
Depreciation on tools, jigs & fixtures and office equipment @ 20% 50,000
Depreciation on civil construction @ 5% 1,70,000
Interest on total capital investment @ 12% 11,53,000
Total 1,96,14,000

Turnover (per annum)

Item Qty.(Nos.) Rate/Unit (Rs.) Total Sales (Rs.)
Electronic quartz analogy clocks 180000 122.22 2,20,00,000

Profit (per annum) (Before Taxes)


Sales Rs. 2,20,00,000 – 1,96,14,000
Cost of production Rs. 23,86,000

Net Profit Ratio


Profit (per annum) ×100

Sales (per annum)

  23,86,000 × 100

Rate of Return


Profit (per annum) ×100

Total capital investment

  23,86,000 x 100

Break-even Point

Fixed Cost (per annum)


Total Depreciation 2,45,000
Interest on total capital investment @ 12% 11,53,000
40% Salaries and wages 6,09,000
40% other contingent expenses 2,69,000
Total 22,76,000
B.E.P Fixed cost ×100
Fixed cost + Profit
  22,76,000 × 100
  22,76,000+ 23,86,000

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. Toshniwal Bros. (Delhi) Pvt. Ltd.
    3-E/8, Jhandewalan Extn.,
    New Delhi-110055.
  • M/s. Ruttonsha Simpson Pvt.Ltd.
    14, Jhandewalan Link Road,
    New Delhi-110055.
  • M/s. Motwane Pvt. Ltd.
    68, Janpath, Post Box No. 47,
    New Delhi.
  • M/s. British Physical Laboratories
    93, Nehru Place,
    New Delhi-110019
  • M/s. EM Electronics Pvt. Ltd.
    158, III Main Industrial Town,
    Rajaji Nagar,
    Bangalore–560 004.

Raw Material / Component Suppliers

  • M/s. H.B. Chugh and Co.
    14 A/31, W.E. Area,
    Karol Bagh, New Delhi.
  • M/s. Semiconductor Complex
    (A Govt. of India Enterprises),
    (Marketing Division),
    C5/18, Safdarjung Dev./Area,
    New Delhi–110028.
  • M/s. Sargodha Radio Co.
    C-134, Naraina Industrial Area,
    New Delhi-110028.
  • M/s. Chawla Plastics Works Pvt. Ltd.
    A-4, Mayapuri, Phase-I,
    New Delhi.
  • M/s. Bhola Plastic Industries
    B-34/5, G.T. Karnal Road,
    Industrial Area,
  • M/s. Kanwar S.M. Co.
    Naraina Inds.Area, Phase-I,
  • M/s. CINA Electronics
    1A/218, Ashok Vihar,
  • M/s. Copwud Arts
    118-120, Satguru Nanak Inds.Estate,
    Western Express Highway,
    Goregaon (East),
  • M/s. Boble Electronics
    354, Lajpat Rai Market,

For further information please contact

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