Automobile Body Building (Bus Body)

Home » Technology » Project Profiles » Mechanics » Automobile Body Building (Bus Body)
Product Code 374103003
Quality and Standards Buyer's Specifications
Production Capacity Qty. : 324 Nos.(per annum)
Value : Rs. 13,51,00,000


Automobile body (Bus Body) building is an important activity. The chasis are supplied by Automobile manufacturers, and body is built by automobile body builders as per the requirements of the customer and specifications of the different State Transport Undertakings.

Market Potential

Bus is used as the most common public transport vehicle in our country. Different State Transport Undertakings are plying their buses for commuting public from one place to another and from one State to another. Apart from these Undertakings, Private Bus Operators, travel agencies etc. are also operating buses on permit basis. With rapid changes in the society, now a days it has become necessary to provide good and efficient service to the public. Also with the rapid industrialisation, public is moving very frequently from one place to another using public transport. Since more and more development in the coming years, it is expected that demand of public transport, private transport and luxury transport in the form of buses will increase in the coming years.

Basis and Presumptions

  • Working will be for 3 shifts per day of 08 hrs each at minimum 75% working efficiency to achieve the envisaged production capacity.
  • A time period of three years has been considered for achieving the full capacity utilisation after start of commercial production.
  • Labour wages are considered as per the prevailing market rates.
  • Interest on fixed and working capital investment has been calculated at an average rate of 12% per annum.
  • The cost of land and building has been calculated as per the prevailing market prices, and these rates are likely to vary from place to place.

Implementation Schedule

The following activities are to be completed and the approximate time for each activity is as mentioned against each of them


Period (in Weeks)

Selection of product 4
Selection of Industrial site 2
Provisional registration 2
Preparation of project Report 2
Application for finance and getting Loan sanctioned 24
Recruitment of man power 4
Purchase and Installation of machinery 14
Trial Run 1

It is necessary to obtain permanent Registration Certificate from the concerned District Industries Centre after commencement of commercial production.

Technical Aspects

Process of Manufacture

Metal sheets are cleaned and derusted for grease/oil if any. Then sheets are cut to size for forming different parts and these parts are formed on press brake. Now different parts and their subassemblies are fabricated as per their design and size. These parts and subassemblies are fabricated– together to make them a complete bus body. The complete body is painted as per the requirements of the customer. Shower test is carried out for leakage etc.

Quality Control and Standards

Production Capacity (per annum)

Production Capacity (per annum)

Quantity 324 Nos.
Value Rs 13,51,00,000
Motive Power 150 HP (Approx.)

Pollution Control

The manufacturing/fabrication of bus body does not pose any problem for pollution. However, proper ventilation is to be done in shop floor area and painting area. Provision for pollution control equipments has been made in this Project Profile.

Energy Conservation

Suitable energy efficient motors are to be used on proposed machines with provision of recommended shunt capacitors.

Financial Aspects

(i) Civil cost

Amt. (In Rs.)

Land 4000 Sq.Mtrs. @ Rs. 3500/ Sq.Mtr. 1,40,00,000
Office - 100 Sq. Mtr @ Rs.7500/ 7,50,000
Store –150 Sq. Mtr @Rs.6000/ 9,00,000
Working shed - 2000 Sq. Mtr. @ Rs. 6000/ bore well and raw water storage, DG set room, security room, laboratory, maintenance room, workers room 1,20,00,000
Paint Shop (Preferably Dust Proof) - 100 Sq. Mtr. @ Rs. 7000 per Sq. mtr. 7,00,000
Boundary wall, gates, roads inside the premises 8,00,000
Cost of land and building = 1,40,00,000 + 1,51,50,000 2,91,50,000

(ii) Machinery and Equipments


Ind./ Imp.


Total (In Rs.)

Motorised Guillotine Sheet Shearing Machine Capacity 2500×4 mm with 10 HP electric motor and starter etc. also fitted with front and back side gauges, sheet holding devices etc Ind. 1 9,00,000
Power operated Press Brake bending capacity 2440 × 4 mm, 100 Ton with 15 HP Main Motor and 2 HP raw adjustment Motor Ind. 1 11,00,000
Suspension type M.I.G. Welding system 250 Amp. along with power source, wire feeder, Torch and flow Calibrated Co2 regulator and Co2 heated with core assembly OPC. Ind. 1 2,00,000
Gas Welding set with all the Accessories etc. Ind. 2 50,000
Arc welding machine 300 Amps. 15 kVA Air Cooled complete with all the accessories Ind. 5 2,00,000
Air Compressor with painting equipment and accessories for painting Ind. 1 2,00,000
Different types of power/Air operated tools like Nut runner, drilling gun etc. Ind. L.S. 4,00,000
Drilling Machine 1½" capacity Ind. 2 1,00,000
Metal cutting bandsaw for cutting Aluminium sections complete with 2 HP Electric motor and accessories Ind. 1 1,00,000
Hoist chain pulley block crane and material handling trolley etc. Ind. L.S. 5,00,000

Testing Equipment and others

Shower tester self fabricated (Nozzles to be arranged at different orientations to cover the entire portion of the vehicle) Ind. 1 3,00,000
Portable digital paint thickness checking equipment (Coating thickness checking) Ind.   25,000
Small measuring tools Ind.   25,000
Pollution Control Equipment     2,00,000
Bore well and raw water system, DG set with accessories     15,00,000
Excise and sales tax electrification and installation charges @ 40% cost of machinery and equipment     27,20,000
Cost of Jigs, Fixtures etc.   L.S. 5,00,000
Cost of office equipment   L.S. 5,00,000
Total plant and m/c cost 95,20,000
(iii) Preoperative expenses 5,00,000
Total Fixed Capital (i+ii+iii) Rs. 2,91,50,000 + 95,20,000 + 5,00,000 3,91,70,000

B. Working Capital (per month)

(i) Personnel



Salary (Rs.)

Amount (In Rs.)

(i) Administrative and Supervisory
General Manager 1 30,000 30,000
Commercial Manager, Sales and Marketing staff, finance and accounts staff and purchase staff and stores staff     1,75,000
Administrative officer and staff     30,000
Production manager, laboratory chemists maintenance engineers and staff, shift incharges     2,00,000
Chowkidar/Watchman 7   21,000
(ii) Technical      
Skilled Workers 40 5000 2.00,000
Semi-skilled workers 45 4000 1,80,000
Un-skilled Workers 40 3000 1,20,000
Total     9,56,000
Add perquisites @ 22% 2,10,000
Total 11,68,000

(ii) Raw Materials


Ind./ Imp.


Rate (Rs.)

Amount (In Rs.) )

M.S. Channel 75 × 40 to × 50 mm Ind. 9 MT 40,000 3,60,000
M.S. Equal Angle 25× 25×3 to 50×50×6 mm Ind. 15 MT 40,000 6,00,000
M.S. Flat 50 to 70 mm wide Ind. 3.750 MT 40,000 1,50,000
Aluminium chequered Plate 8 mm to ½ inch Ind. 3 MT 2,50,000 7,50,000
CR/BP Sheet 10 to 26 SWG Ind. 75 MT 52,000 39,00,000
M.S. Pipe 3/4" to 1" Dia Ind. 1.500 MT 40,000 60,000
Aluminium Rolled Sections Ind. 1.500 MT 2,50,000 3,75,000
Bought out items and hardware items Ind. L.S.   2,00,000
Other bought out items such as Raxine Ply,. PVC. Sheet. Foam OTC, Electrical fittings and fixtures, emblem etc. Ind. L.S.   5,00,000
Total 68,95,000

(iii) Utilities


(In Rs.)

Power 150x0,8x0.73x24x25x4 2,10,000
Water L.S. 10,000
Total 2,20,000

(iv) Other Contingent Expenses


(In Rs.)

Lubricants 20,000
Postage and Stationery and communication expenses 30,000
Consumable stores (Redoxide, Paint, Putty, Kerosene, Emery paper, Welding electrode, tools etc.) 5,00,000
Transport Charges 25,000
Advertisement and Publicity 25,000
Insurance Charges 21,000
Sales Expenses 1,50,000
Misc. Expenses 50,000
Total 8,21,000

(v) Total Recurring Expenditure (per month)


(In Rs.)

Staff and labour 11,68,000
Raw material 68,95,000
Utilities 2,20,000
Other Contingent Expenses 8,21,000
Total 91,04,000

(vi) Working capital for 3 months Rs. 2,71,35,000

C. Total Capital Investment

(i) Fixed Capital Rs. 3,91,70,000
(ii) Working capital for 3 months Rs. 2,73,12,000
Total Rs. 6,64,82,000

Machinery Utilisation

It is assumed that machinery will be utilised at 75% efficiency.

Financial Analysis

Cost of Production (per year)

(In Rs.)

Total recurring cost 10,92,48,000
Depreciation on building @ 5% 7,58,000
Depreciation on Dies, Jigs and Fixtures etc. @ 20% 1,00,000
Depreciation on machinery and equipments @ 10% 8,52,000
Depreciation on office equipment 20% 1,00,000
Interest on total capital investment @ 12% 79,78,000
Total 11,90,36,000

Turnover (per year)



Rate (Rs.)

Total (In Rs.)

Full size Bus body 324 Nos. 4,11,440 per piece 13,33,00,000
Sale of scrap 90 MT 20000/MT 18,00,000
Total 13,51,00,000

Net Profit (per year) (Before Income Tax)

Profit = Rs. 13,51,00,000 – 11,90,37,000
  = Rs. 1,60,63,000

Net Profit Ratio

  Net Profit (per year) ×100
  Total Sale
  1,60,63,000 × 100
  = 13,51,00,000
  = 11.89%

Rate of Return

  Net Profit (per year) × 100
  Total investment
  1,60,63,000 × 100
  = 6,64,82,000
  = 24.16%

Break-even Point

Fixed Cost

(In Rs.)

Depreciation on machinery and equipment, tools, fixtures, office equipment and building 18,10,000
Interest on total investment 79,57,000
40% of Salary and wages 56,06,000
40% of utilities and other contingent expenses 39,40,000
Total 1,93,13,000

B.E.P Fixed cost × 100
  Fixed cost + Profit
  1,93,34,000 + 1,60,63,000
  = 54.62%

Additional Information

The unit should install degreasing and phospating plant for obtaining long life and good quality paint of bus body to improve the quality of product .

Addresses of Machinery Suppliers

  • M/s. Parekh Machine Tools
    5, Khetra Das Lane, Behind Broad
    Way Hotel, Kolkata.
  • M/s. Economic Machine Tools
    21, Dr. V.B. Gandhi Marg,
    (Forbes Street), Fort,
  • M/s. Master Engg. Works (Regd.)
    G.T. Road (Dholewal), Opp. Indian
    Oil Petrol Pump, Ludhiana-3.
  • M/s. International Machine Tools Corporation
  • Nyayamurti G.N. Vaidhya Marg,
    Bank Street, Post Box No-2,
    Behind State Bank of India,
    Fort, Mumbai-1.

Raw Material Suppliers

  • M/s. Steel Authority of India.
  • State Laghu Udyog Nigam.
  • Local Market.

For further information please contact

Information Manager
TIMEIS Project