Casting for Auto Locks
| Product Code |
N.A. |
| Quality and Standards |
As per BIS. |
| Uploaded on |
February 2007 |
Introduction
Zincs castings of various sizes and shape are used in Auto Locks Assembly. Usually die casting zinc alloy is used for this purpose due to
- High productivity
- Good as Casting surface finish and appearance
- Do not require much machining
- Can be cast within close dimensional tolerance
- Their section can be cast with case.
- Very Low metal wastage
- Very Low rejection.
Market Potential
Open market and Automobile units are in need of the Auto Locks. Hence there is good scope for this product. It is better to do the production of Zinc diecasting for Auto Locks near the Auto Lock Manufacturing units' Cluster. There is very good scope in and around Aligarh city which has cluster group of Auto locks manufacturing units.
Basis and Presumptions
| Number of shifts |
Single shift of 8 hrs. |
| Working days per Annum |
300 |
| Working efficiency |
75% |
| Time period for achieving full capacity utilisation |
3 years |
| Labour wages |
As per the minimum Wages Act of State Govt. |
| Margin money |
25% on an average of project cost |
| Interest rate on fixed and working capital. |
15% on average. |
| Estimated life of the project |
20 Years |
| Land cost and construction cost |
It has been assumed that the project is established in rented shed. |
| Cost of Machinery and Equipments |
Prevailing cost of the Market |
| Seeing present practice, it has been assumed that the die and Raw material will be supplied by the Lock Assemblers. |
|
Implementation Schedule
Nature of Activities |
Period in month (Estimated) |
| Scheme Preparation and Approval |
1 |
| SSI Provisional registration |
15 |
| Sanction of loan required if any |
3 |
| Clearance from State Pollution Control Board |
2 |
| Placement of order for delivery of machinery |
3 |
| Installation of machinery |
1 |
| Power connection |
3 |
| Trial Run |
5 |
| Commencement of regular production |
After 5 months |
Technical Aspects
Process of Manufacture
Melting of zinc Ingots (4500C) - Clearing - Diecasting - ejection of casting - runner breaking - Primary inspection - Fitting - Final inspection - Buffing - despatch.
Quality Control and Standards
As per customer's specification. Die cast components should be free from blow holes, pin holes, shrinkage, coldshut etc. They should be free from dimensional inaccuracies. Zinc alloy should be as per specification of the customer. Generally Zinc alloy (IS MAC-3) having electrolytic Zinc with 4-6% Al is used for this purpose. Raw material is expected to be supplied by the lock assemblers.
Production Capacity (per annum)
Quantity |
Value (In Rs.) |
| 1.50 Lakhs |
Rs. 12 Lakhs |
Pollution Control
There is not much problem of pollution. However, powerful exhaust is required for exhaust of smokes from the shed.
No Objection Certificate has to be obtained from State Pollution Control Board.
Energy Conservation
- Maximum utilisation of machine has to be done to consume metal from the melting Furnace.
- The Furnace should be provided with thermocouple and automatic temperature control devices.
- Opening of the Furnace shouldbe kept closed while not in use.
- Energy audit of the unit has to be done on a regular basis.
- Preheating of charge should be done by keeping few ingots on holding furnace.
- The Furnace should be properly insulated to reduce radiation.
Financial Aspects
Fixed Capital
| (i) Land and Building |
(In Rs.) |
| Rented area 300 sq. mtrs. @ Rs. 3000 per month |
9,00,000 |
(ii) Machinery and Equipment
Description |
Ind/Imp |
Qty. |
Amount
(In Rs.) |
| Horizontal Hot chamber pressure die casting M/c capacity 400 gm/ shot with control panel and accessories |
Ind. |
1 No. |
2,00,000 |
| Electrical Resistance furnace for melting zinc alloy |
Ind. |
1 No. |
1,00,000 |
| Arc welding machine |
Ind. |
1 No. |
15,000 |
| Fitting equipment and Buffing equipments |
Ind. |
- |
15,000 |
| Bench drilling machine (1 HP) |
Ind. |
- |
10,000 |
| Weighing Machine (Platform type) 200 kg cap. |
|
|
10,000 |
| Air compressor (3 HP) |
|
|
25,000 |
| Pedestal Grinder (2 HP) |
|
|
10,000 |
| Flexible shaft grinder (2 HP) |
|
|
10,000 |
| Bench grinder double ended (1/2 HP) |
Ind. |
1 No. |
8,000 |
| Pheusmatic grinder |
Ind. |
1 No. |
4,000 |
| Material Handling equipments |
Ind. |
|
5,000 |
| Testing Equipments |
Ind |
|
20,000 |
| Pollution Control Equipment (Exhaust) |
Ind |
|
10,000 |
| Energy conservation facilities |
|
|
Already included in the
accessories of Furnace |
| Cost of power connection including transformer |
|
|
1,00,000 |
| Electrification and Installation charges |
|
|
50,000 |
| Tools and other fixtures |
|
|
20,000 |
| Office equipment/working tables |
|
|
20,000 |
| Total |
6,32,000 |
| (iii) Pre-operative Expenses |
Rs. 50,000 |
| Total Fixed Capital |
= 2 + 3 (As shed is rented) |
| |
= Rs. 6,82,000 |
Working Capital (per month)
(i) Personnel
Administrative Supervisory |
Rs |
| Manager |
1 No. |
Rs. 4,000 |
4,000 |
| Engineer cum-Supervisor |
1 No. |
Rs. 4,000 |
4,000 |
| Accountant (Part-time) |
1 No. |
Rs. 1,000 |
1,000 |
| Clerk cum Typist (Part-time) |
1 No. |
Rs. 1,000 |
1,000 |
Technical Skilled and Unskilled |
Rs |
| Skilled worker |
1 No. |
Rs. 3,000 |
3,000 |
| Semi-skilled worker |
1 No. |
Rs. 2,500 |
2,500 |
| Unskilled worker |
2 Nos. |
Rs. 2,000 |
4,000 |
| Peon–cum–watchman |
1 Nos. |
Rs. 2,000 |
2,000 |
| Total |
|
|
21,500 |
| Perquisites @ 15% |
|
|
3,225 |
| Total |
|
|
24,725 |
(ii) Raw Material
| |
|
(In Rs.) |
| Zinc Alloy ingots |
Ind (Alloy ingots will be supplied by the customer) 5% Burning loss will also be allowed.) |
|
| Various consumables |
Ind |
20,000 |
| Total |
20,000 |
(iii) Utilities (per month)
| |
Amt.(In Rs.) |
| Power |
5,000 |
| Water and Misc. |
1,000 |
| Total |
6,000 |
(iv) Other Contingent Expenses (per month)
| |
(In Rs.) |
| Rent |
3,000 |
| Telephone |
1,000 |
| Consumable stores |
500 |
| Transport charges |
1,000 |
| Advertisement and publicity |
500 |
| Postage and stationery |
500 |
| Insurance taxes, and other misc exp. |
3,000 |
| Repairs and maintenance |
1,000 |
| Total |
10,500 |
(v) Total Recurring Expenditure (per month)
| |
(Rs.) |
| (i) + (ii) + (iii) + (iv) |
= Rs. 61,225 |
| (vi) Total Working Capital (for 3 Months) |
= Rs. 1,83,675 |
Total Capital Investment
| (i) Fixed Capital |
Rs. 6,82,000 |
| (ii) Working capital (3 months) |
Rs. 1,83,675 |
| Total |
Rs. 8,65,675 |
Machinery Utilisation
- Working efficiency—75%
- Single shift
- 25 working days in a month.
Financial Analysis
Cost of Production (per year) |
(In Rs.) |
| Total Recurring cost |
7,34,700 |
| Depreciation on machinery @ 10% |
49,200 |
| Depreciation on furnace @ 20% |
20,000 |
| Depreciation on tools and fixture @ 25% |
5,000 |
| Depreciation on office equipment @ 20% |
3,000 |
| Interest on total investment @ 15% |
1,29,851 |
| Total |
9,41,751 |
Turnover (per year)
Item |
Qty. |
Rate (In Rs.) |
Value (Rs.) |
| Zinc die casting for
Auto Locks per shot of 400 grm shot about 3-4 various castings like Roter, Body casting etc. |
1,50,000 shot |
@ Rs. 8 per shots conversion charges |
12,00,000 |
Net Profit (per year) (Before Income Tax)
| |
Total Sales – Total Cost of Production |
| |
= Rs. 2,58,249 |
Net Profit Ratio
| |
Net Profit |
| |
Turnover ×100 |
| |
= 21.5% |
Rate of Return
| |
Net Profit per year |
| |
Total Investment ×100 |
| |
= 29.83% |
Break-even Point
Fixed Cost (per annum) |
(In Rs.) |
| Depreciation on machines and equipment tools, fixtures and office equipments |
77,200 |
| Rent (Annual) |
36,000 |
| Interest on Total Investment |
1,29,851 |
| Insurance |
24,000 |
| 40% of salary and wages |
1,18,680 |
| 40% of other contingent expenses excluding rent and insurance |
26,400 |
| Total |
26,400 |
| B.E.P |
Annual fixed cost ×100
|
| |
Annual fixed cost + Profit |
| |
412131×100 |
| |
670380 |
| |
= 61.47% |
Additional Information
In this Project Die and Raw material will be supplied by the customer as per present practice in the field of die casting.
Addresses of Machinery and Equipment Suppliers
- M/s. H.M.T. Limited
Die casting and Plastic Machinery
Division, HMT P.O., Bangalore-31
- M/s. P.K. Engineering Works
B-1, Industrial Estate, Aligarh. U.P.
Addresses of Raw Material Suppliers
- M/s. Hindustan Zinc Limited
- M/s. Minerals and Metals Trading Corpn. of India Limited.
1-8-32/15, Bapubagh, Panderghast
Road, Secunderabad-3
- M/s. S.S. Agarwal and Co.
Sabzi Mandi, Kanwari Ganj,
Aligarh, U.P.
Addresses of Chemical Suppliers
- M/s. Greaves Foseco Limited
Chinchwad, Pune-411019
- M/s. I.V.P. Limited
Regd. Office, Shashikant Nedij
Marg, Ghorupodio, Mumbai-33.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
