Automobile Control Cables
| 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
