Automobile Control Cables

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Product Code 374846006
Quality and Standards IS 1978
Production Capacity Qty. : 60,000 dozens (per annum) Value : Rs. 34.2 Lakhs
Uploaded on May 2007

Introduction

Auto control cables are widely used in various controls of two/three wheel vehicles. Twisting of desired/required number of S.S. wires, of standard wire gauge of different diameter into one cable makes these. The numbers of S.S. wires of standard gauge depends upon the end use of the auto control cables like brake wire, clutch wire, accelerator wire etc. Each type of cable is of different size depending upon the specific purpose of the cable. The S.S. standard guage wires are twisted in the twisting machine and cut to the required length. One end of the cable is butted and dipped in the molten zinc to avoid ends opening and at the other end of the cable a Zinc stopper of required size/design is fixed by Die- casting process.

The Auto control cables are the fast moving spares used in two/three wheel vehicles and have very good replacement market. These cables enable the driver to control the various vehicle functions, and have a very wide market all over the country. The machines, equipment and raw material for manufacturing these cables are easily available and the technology is fully indigenised. The Unit can be set up in all major cities or near the city area and requires very nominal investment in plant and machines.


Market Potential

Auto control cables have a very wide and never ending replacement market, as the various control cables have to be replaced in any Scooter, Motorcycle, Auto Rickshaw, Moped etc. These are always required by Mechanics and Service stations. Different cables for different end use are packed in printed poly bags and marketed in dozen packing through the Auto part dealers/shops.


Basis and Presumptions

The project report has been prepared keeping in view the following basis and presumptions while calculating the cost of project and that of production

  • Unit will run 8 hours per day for 300 working days in a year.
  • Unit will manufacture all types of Auto Control Cables for two/three Wheelers for brake, clutch, accelerator etc.
  • Poly bags are got printed as per the requirements from outside.
  • Rates in respect of Machines and Equipment are based upon the rates quoted by a particular manufacturer.
  • Rates of Raw material and other inputs are based upon those prevailing in local market.
  • Unit will be running on single phase power motors.

Technical Aspects

Process of Manufacture

S.S. wire of required standard wire gauge are reeled into the bobbins on the reel winder and loaded onto the bobbins holder of the wire twisting machine. Now with the help of wire twisting machine the required number of S.S. wires are twisted and converted into a single stranded wire of continuos length. The number of S.S. wires and gauge depend upon the type and use of Auto control cable to be made.

The stranded/twisted cable thus made is cut with the help of wire cutting machine into the required size. One end of this wire is butted and dipped into molten Zinc to avoid opening of strands of the cable. At the other end of the cable a zinc stopper of required design/size is fixed with help of a die on a die-casting Machine. The cables thus made are checked/inspected and packed in printed poly bags for marketing.


Implementation Schedule

The implementation schedule for the project will be as under

  • Preparation of project report after getting current rates for Machines and Raw material.
  • Arrangement for shade (rented) and electricity connection.
  • Provisional Registration.
  • Arrangement of Finance and placement of orders for Machinery and Equipment.
  • Procurement and Installation of Machinery & Equipment.
  • Procurement of Raw material.
  • Commencement of production.

Process Flow Chart

S. S. Wires
Reeling into Bobbins
Twisting on Wire Twisting Machine
Cutting to Required Size on Wire Cutting Machine
End Finishing and Dipping into Molten Zinc
Flowering of Other end and Stopper Casting
Inspection
Packing
Store/Despatch

Quality Control and Standards

The Bureau of Indian Standards has laid down following Indian Standard for Auto Control Cables IS 1978.


Production Capacity

Based upon the single shift working of 8 hours per day and taking 25 working days in a month, the production of the unit will be as under

Production (per year) 60,000 Dozens
Value Rs. 34.2 Lakhs

Motive Power

Power requirement for the unit will be 5 HP (approx.) with single phase supply.


Pollution Control

The production activities are very simple in nature and there is no pollution involved. However, while melting zinc provision for exhaust of gases be made through a small chimney and exhaust muffler.


Financial Aspects

Fixed Capital

(i) Land and Building (Rented)
(i) Land 100 sq. mtr. @ Rs. 6000 per sq. mtr including registration 600000
(iii) Total built-up area 100 sq. mtrs.@ Rs 5000/- sq Mtr 500000
Total civil cost= cost of land + building (i) 1100000

(ii) Machinery and equipments (proposed)

Particulars

Qty.

Rate

Amount (In Rs.)

Wire twisting machine (19 bobbins-1 hp motor) 4 25000 100000
Pressure Die Casting machine 1 50000 50000
Compressor (1 HP motor) 1 18000 18000
Size Cutter 1 2000 2000
Flower Machine 1 5000 5000
Hand Press 1 3000 3000
Reel Winder 1 4000 4000
Grinder 1 5000 5000
Hand Cutter 2 800 1600
Dies (For Die-casting) 6 6000 36000
Shearing Machine 1 5000 5000
Small Bobbins 100 17 1700
Big Bobbins 20 120 2400
Poly Bags sealing machine 2 1000 2000
Jigs Fixture and other tools etc. L.S.   20000
Total 255700
Installation and transportation charges @ 15%     38355
Total     294055
Office Equipment and Furnitures     40000
Total (ii)     334055
iii Preoperative Expenses     30000
Total Fixed Capital (i)+(ii)+(iii) 1464055

B. Working Capital (per month)

(i) Salary and Wages

Particulars

No.

Rate

Amount (In Rs.)

Production supervisor cum-Inspector 1 15000 15000
Skilled Workers 2 6000 12000
Semi–skilled Workers 3 5000 15000
Un–skilled Worker-cum-Helper 1 3000 3000
Total 45000

(ii) Raw Material

Particulars

Rate

Qty.

Amount (In Rs.)

SS Wire per Kg 70 1800 126000
Zinc Alloy per Kg. 80 150 12000
L.P.G. cylinders 600 5 3000
Packing Material (poly bags printed)   L.S. 10000
Total 151000

(iii) Other Contingent Expenses (per month)

Particulars

Nos.

Amount (Rs.)

Power requirement- 5 HP single phase supply
Electricity Charges
  4103
Other Misc. Expenses L.S. 3000
Total   7103

(iv) Other Contingent Expenses

Particulars

Nos.

Amount (Rs.)

Maintenance/Repair L.S 2000
Postage and Stationery L.S 2000
Travelling and Conveyance L.S 8000
Misc. and Insurance L.S 2000
Total 14000

(v) Working Capital (per month)

Particulars

Amount (Rs.)

Raw Material 151000
Salary/Wages 45000
Utilities 7103
Other Contingent Expenditure 14000
Total 217103

C. Total Capital Investment

(i) Fixed Capital 1464055
(ii) Working capital for 2 Months 217103
Total 1681158

Financial Analysis

Cost of Production (per year)

Amount (Rs.)

Total Recurring expenditure 2605236
Depreciation on Building @ 5 % 55000
Depreciation on Machines @ 10% 29406
Depreciation on Office Equipment @ 20% 8000
Interest on capital @ 12% 201739
Total 2899381

Turnover (per year)

Particulars

Amount (In Rs.)

By sale of 60000 Dozens of auto control cables of various types at an average rate of Rs. 60 per dozen 3600000
Less sale expenses @ 5% 180000
Total 3420000

Profit (per year) = 520619


Profit % on Sales = 15.22


Rate of Return = 30.97


Break-even Point

Fixed Cost

Description

Amount (Rs.)

Depreciation on Building @ 5 % 55000
Depreciation on Machines @ 10% 29406
Depreciation on Office Equipment @ 20% 8000
Interest on capital @ 12% 201739
40% of staff and labour 216000
40% of Other Contingent Exp. and Utilities 67200
Total 577345
B.E.P 577345 × 100
  577345 + 520619
  = 52.58

Addresses of Machinery and Equipment Suppliers

  • M/s. Lolita Manufacturing Works (Regd.)
    9340, Katra Ganga Vishan,
    Gaushala Road, Kishanganj,
    New Delhi-110006
  • M/s. Ajit Wire Products
    Gokul Da Bagh, Near 100 Ft. Road,
    Amritsar-143006
  • M/s. S. S. Sabharwal and Sons
    664, Military Road, Anand Parbat,
    Industrial Area,
    New Delhi-110005

Raw Material
Local Market.


For further information please contact

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