Stainless Steel Portable Water Filter
| Product Code |
345411005 |
| Quality and Standards |
Buyer's/Manufacturer's own specifications |
| Production Capacity |
Qty. : 54,000 Nos. (per annum)
Value : Rs. 324.Lakhs |
| Uploaded on |
May 2007 |
Introduction
Portable Water Filters are very common household utility item now-adays in all parts of our country. Basically its function is to filter the microsuspended particles from water supplied to our homes which contains such type of particles and makes the water sluggish and mud coloured. When water is filtered through a ceramic porous candle, the suspended particles are tapped in the candle and filtered water is collected in the bottom part of the vessel, where a tap is fitted to drain water as and when required.
The quality of potable water whether supplied from water supply agencies or through bored wells, is generally not good enough to consume. This problem is more serious in North Eastern part of our country where the main constituents which make water contaminated are oil and iron. The use of filters is the only cheapest way to solve this problem and this product is thus very essential for each house.
Market Potential
The market potential is fairly good as most of the filters available in the market are marketed by Kolkata or Delhi based manufacturers. The market is rapidly expanding to sub-urban areas and villages too, where till date the only source of portable water is wells. But now with the modern living standards, water supply system is incorporated in buildings and to improve the quality, filters are essential.
Basis and Presumptions
- The unit proposes to work in one shift of 8 hours with 75% efficiency.
- The full capacity utilisation can be achieved in one year.
- Interest rate of loans is taken @ 12% for fixed capital and working capital.
- The promoter's contribution is 25%.
- Payback period of the project is five years.
- The labour wages are based on local market conditions and observations.
Implementation Schedule
Datum : Submission of application for the preparation of Project Report.
Activity |
Period |
| Preparation of Project Report |
8 weeks |
| Selection of site and obtaining of provisional registration |
2 weeks |
| Application for institutional finance |
2 week |
| Financial tie ups for the implementation of the project |
3 weeks |
| Marketing arrangements |
8 weeks |
| Placement of orders for machinery and equipments |
2 weeks. |
| Delivery of machinery and equipments |
2 weeks |
| Trial and production run |
4 weeks. |
Technical Aspects
Process of Manufacture
Stainless steel portable water filter is a unit which consists of two vessel made of steel. The top vessel is used to store raw water. It has one/two ceramic candles at the bottom which allow water to flow across it and traps suspended particles. The filtered water is accumulated in the lower vessel drop by drop, where a tap is fitted at the bottom to drain water for use. The top vessel has a lid on top.
The manufacturing of steel vessels involves the following steps
S.S. Blanks (Purchased/Blanked on Circle Cutting Machine)
 |
Deep Drawing
|
Trimming and Curling
|
Punching of Holes for Fittings
|
Polishing
|
Packaging
|
(Accessories e.g. tap, ceramic filter candles and lid knobs are supplied along with, which are fitted by the customers at home as per Instructions Manual.)
Quality Control and Standards
There is no ISI specification for the product. However, the product is made to various sizes ranging from 12 lit. to 30 lit. capacity out of stainless steel sheets of 24 and 28 gauge.
Production Capacity (per annum)
| Quantity |
54000 Nos. |
| Value |
324 Lakhs |
Financial Aspects
Fixed Capital
| (i) Land and Building |
| (i) Land 200 sq. mtr. @ Rs. 6000 per sq. mtr including registration |
1200000 |
| (ii) Cost of land development, fencing, approach road, inside roads, land scaping, drainage etc. @ Rs. 1000 per sq. mtr. |
200000 |
| (iii) Total built-up area 150 sq. mtrs.@ Rs 5000/- sq Mtr |
750000 |
| Water System (including Bore Well + over head tank etc) |
100000 |
| Total civil cost= cost of land + building |
2250000 |
(ii) Machinery and Equipments
Description |
Qty. |
Rate (Rs.) |
Amount (In Rs.) |
Deep drawing double action cam type power press, size
No.3 blank admitted 15", deep draw 4", No. of strokes/ minute-15, alongwith 7.5 HP motor |
2 |
200000 |
400000 |
| Beading machine with complete accessories |
1 |
20000 |
20000 |
| Stamping Machine |
1 |
10000 |
10000 |
| Lathe Machine 2 HP Motor, Centre height 12" length of bed 6 Ft. |
1 |
50000 |
50000 |
| Electrically heated box type chamber furnace. Heating chamber size 24" × 24" × 18".20 kW with temperature control device. |
1 |
150000 |
150000 |
Circle cutting machine
pedestal type 6" to 42"
with 1 HP motor |
1 |
20000 |
20000 |
Polishing machine
with 2 HP Motor |
4 |
20000 |
80000 |
| Beam scale |
1 |
8000 |
8000 |
| Arc Welding equipment |
1 |
20000 |
20000 |
| Double ended bench grinder wheel size 10" × 1" with 1 HP motor |
1 |
16000 |
16000 |
| Drilling machine 1" cap. with 1 HP motor |
1 |
15000 |
15000 |
| Punching Machine with accessories, cap. 1/2" to 2" |
1 |
15000 |
15000 |
| Hand tools like spanners, files, chissels, drills, taps grease gun, and oiling equipment |
L.S. |
10000 |
10000 |
| Precision instruments and measuring tools like vernier, caliper micrometer gouge etc. |
L.S. |
10000 |
10000 |
| Cost of dies for press and fixtures for different items |
L.S. |
40000 |
40000 |
Cost of office equipment including Typewtriter, Fax
Machine, etc. |
L.S. |
80000 |
80000 |
| Erection, Installation and Electrification Charges @ 10% |
L.S. |
|
94400 |
| Total |
1038400 |
| (iii) Pre-operative Expenses |
50000 |
| Total Fixed Capital (i+ii+iii) |
3338400 |
B. Working Capital (per month)
(i) Salary and Wages
Designation |
No. |
Salary (Rs.) |
Amount
(In Rs.) |
| Manager-cum- Accountant |
1 |
15000 |
15000 |
| Clerk cum Typist |
1 |
7000 |
7000 |
| Store Keeper |
1 |
5000 |
5000 |
| Foreman cum diemaker |
1 |
6000 |
6000 |
| Pressman |
2 |
6000 |
12000 |
| Polishers |
4 |
6000 |
24000 |
| Circle blank cutter |
1 |
5000 |
5000 |
| Peon-cum-watchman |
1 |
3000 |
3000 |
| Skilled Workers |
6 |
4000 |
24000 |
| Un-skilled Workers |
4 |
3000 |
12000 |
| Perquisites @ 22% |
24860 |
| Total |
137860 |
(ii) Raw Material
Item |
Qty. |
Rate (Rs.) |
Amount (Rs.) |
| Stainless steel circle (24,26 gauge) MT including 2% wastage |
10 |
140000 |
1400000 |
| Lusser mops, buffs, emery paper, polishing
compound, lubricants, etc. |
|
LS |
20000 |
| Ceramic Candles, lid knobs, rubber
base ring and metallic taps |
4500 |
120 |
540000 |
| Total |
1960000 |
(iii) Utilities
| |
(In Rs.) |
| Electrical Power |
LS |
10000 |
| Total |
10000 |
(iv) Other Contingent Expenses
| |
(In Rs.) |
| Postage and Stationery |
3000 |
| Repairs and Maintenance |
10000 |
| Transport and Travelling Expenses |
10000 |
| Insurance |
3000 |
| Packaging and Forwarding |
20000 |
| Telephone |
3000 |
| Publicity and Advertising |
20000 |
| Other Misc. Expenses |
10000 |
| Total |
79000 |
(v) Total Recurring Expenditure (per month)
| |
(In Rs.) |
| Salary and Wages |
137860 |
| Raw Materials |
1960000 |
| Utilities |
10000 |
| Other Contingent Expenses |
79000 |
| Total |
2186860 |
| (vi) Working Capital for 2 months |
4373720 |
C. Total Capital Investment
| (i) Fixed Capital |
3338400 |
| (ii) Working Capital (for 2 months) |
4373720 |
| Total |
7712120 |
Machinery Utilization
75% of the capacity utilisation has been taken into consideration.
Financial Analysis
Cost of Production (per year) |
(In Rs.) |
| Total recurring cost |
26242320 |
| Depreciation on Building @ 5 %
| 112500 |
| Depreciation on machinery and equipment @10% |
86400 |
| Depreciation on office equipment @ 20% |
16000 |
| Total interest on capital investment @ 12% |
925454 |
| Total |
27382674 |
Turn-over (per annum)
Items |
Amount. (In Rs.) |
| Total Production of Water Filter will be 54000 pcs. (4500pcs.×12 months) for sale of different sizes and the average sale price is Rs. 600 per piece. |
32400000 |
Net Profit (per year) (Before taxes)
| Total Sales - Cost of Production |
5017326 |
Net Profit Ratio
| |
Net Profit per year × 100 |
| |
Turnover per year |
| |
= 15.49 |
Rate of Return
| |
Net Profit per year × 100 |
| |
Total Capital Investment |
| |
= 65.06 |
Break-even Point
Fixed Cost |
(In Rs.) |
| Depreciation on Building @ 5 % |
112500 |
| Insurance |
36000 |
| Depreciation on machinery and equipment |
86400 |
| Depreciation on office equipment |
16000 |
| Total interest on capital investment |
925454 |
| 40% of salaries |
661728 |
| 40% of other contingent expenses |
379200 |
| Total |
2217282 |
| B.E.P |
2217282 × 100
---------------------
2217282 + 5017326 |
| |
= 30.65 |
Addresses of Manufacturers and Machinery /Equipment Suppliers
- M/s. Radha Enterprises
169, Gopal Nagar, Hapur Road,
Ghaziabad (UP)
- M/s. Hindustan Metal and Engineering Works
Jeewali Bazar, Rewari
- M/s. G. P. Iron and Metal Industries
Dera Nanak Road,
Batala
- M/s. Midnapore Engineering Works
63, Kalbortya Para Lane,
Salkia, Howrah (WB)
- M/s. Howrah Sheet Metal and Engg. Works
242/1/11, G.T. Road,
Ghusuri, Howrah-7
- M/s. Rama Industries
Jajjar Road, Rewari
- M/s. Prem Metal Products Ltd.
Adhyatmic Nagar,
Ghaziabad (UP)
- M/s. Auto Test
B-5, DSIDC Indl. Complex,
Rohtak Road,
Delhi-110041
- M/s. M.G. Electricals
Plot No. 97, Sector 24,
Faridabad
- M/s. Simplicity Engineers (P) Ltd.
B-99, Mayapuri Indl. Area,
New Delhi-110064
- M/s. Steel Plant (P) Ltd.
205, Dr. Annie Besant Road,
Worli, Mumbai-18
- M/s. Standard Engg., Co. Ltd.
B-1-102, Himalaya House,
10th Floor, 23, Kasturba Gandhi Marg,
New Delhi-110001
- M/s. United Electrical Co.
18, New Qutab Road,
Delhi-110006
- M/s. Rajendra Electric Works
3559, Qutab Road,
Delhi-110006
- M/s. Sham Ravinder and Co.
A-46, Indl. Area,
G.T. Karnal Road,
Delhi-110033
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
