1 PROJECT PROFILE FOR MANUFACTURE OF. agricultural IMPLEMENTS. agricultural Implements NAME OF PRODUCT. NIC Code(2004) REVISED. 29212. Product Code(ASICC-2000). 76101. PRODUCTION CAPACITY 1250 NOS. QTY. & VALUE (PA) LACS. MONTH & YEAR OF DECEMBER,2010. PREPARATION. MSMEDI, Digiana industrial PREPARED BY Estate, JAMMU. Ph-0191-2431077,2435425. 1. PROJECT REPORT FOR MANUFACTURE OF agricultural IMPLEMENTS. Section I. PROJECT & ITS INTRODUCTION. The proposed pro ject is for establishment of an industrial unit for MANUFACTURE of Tractor drawn agricultural Implements like Tillers/cultivators & Disc harrows etc. These implements are mainly employed for the preparation of soil bed for sowing & burial of organic substa nces as well as loosening & aerati ng the soil in the agri cultural fields MARKET POTENTIAL. The proposed products Tillers & Disc harrows are primarily the tractors drawn agricultural implements that are mainly employed for preparation of soil bed for sowing & buri al of organic substances as well as looseni ng & aerating the soil in the agricultural fields.
2 These are heavy duty & economical implements employed by the farmers all over the world for soil bed preparation. Since India is high i n the Agriculture base there is a big demand of these implements in the entire country including Jammu & Kashmir particularly in the plain areas like districts Kathua, Jammu & Samba. Presentl y there is no organized manufacturer of these products in the sta te & there is a tremendous gap in demand & supply since most of the products are being supplied by the units in neighboring states -Punjab & Haryana. Therefore there is a very good market potential for the production of the agricultural implements. Section II. MANUFACTURING PROCESS, TECHNICAL ASPECTS & BASIS. The manufacturing of proposed products involve various manufacturing processes like cutting of steel sections, fabrication, welding, dril ling, turning making sub assemblies, fitting & final assembly etc where steel sections & other parts/components like tynes, springs & fast eners be out sourced & purchased as per own design & specifications.
3 The manufacturing also involves inspections at various stages till they are finally assembled & packed as per thei r Quality assurance following are the presumptions made while preparing this PROJECT report. The establishment of unit involves an electrical connection of 60 KW. The viability calculations in the PROJECT are based on the 100 % capacity utilization of the PROJECT . 2. While preparing the PROJECT , the following Annual production capacity has been considered PRO PO S ED A NN UA L PRO D UC T IO N CAP AC I TY. S. Qty . in Avg Ra te Am o un t Na m e o f I tem No . No s (R s i n tho u sa nd s ) (R s. in La c s). 1 Sp ri n g T yp e T il ler s - 9 T yn es 100 10 10. 2 Sp ri n g T yp e T il ler s - 1 1 T yn e s 150 12 18. 3 Ri g id T yp e T il ler s 9 T yn e s 150 8 12. 4 Ri g id T yp e T il ler s 1 1 T yn es 100 9 9. 5 Di sc Har r o ws P la n e 1 2 Di sc s 100 24 24.
4 6 Di sc H ar r o ws P la n e 1 4 Di sc s 100 26 26. 7 Di sc Har r o ws P la n e 1 6 Di sc s 100 28 28. 8. Di sc Har r o ws T r ail ed o f f se t 1 2 Di sc s 100 25 25. 9 Di sc Har r o ws T r ail ed o f f se t 1 4 Di sc s 100 27 27. 10 Di sc Har r o ws T r ail ed o f f se t 1 6 Di sc s 50 28 14. 11 Mo u n ted O f f se t D i sc ha r r o w -1 2 Di sc s 100 26 26. 12 Mo u n ted O f f se t D i sc ha r r o w -1 4 Di sc s 50 28 14. 13 Mo u n ted O f f se t D i sc ha r r o w -1 6 Di sc s 50 30 15. To ta l 2 4 8 La c s Section III. LAND, BUILDING & PROPOSED SECTIONS. Land Plot of 1500 ( in any industrial Estate at its prevailing average price) of Rs. 1558 per = Rs Lacs Building Plot area to be covered for construction = 60% = 607 Sq. Mts. 3. Building to be constructed with following se ctions: Incoming, outsourced & BO items Stores Incoming Inspection area Workshops for Press section, Welding section, Machining section Paints & primer application shop Sub assemblies sections for Tillers & Disc harrows Final assembly section Design & development and Quality Control Section Marketing & Purchase Sections Office block, Accounts & Administrative Section Packaging Section Finished Goods Store Parking Area and open space Chowkidar room The estimated amount involved for construction of the sit e as per above plan is as below: Rate per Amount S.
5 Area Work Involved Sq. Mts. (Rs. in No. (Sq. Mts.). (in Rs.) Lacs). RCC Construction with 1 Elect/ Water/Sanitary fittings 150 Sheds with asbestos/ other sheets 2 roof Boundary Wall, Gates & lighting 3 etc. - - Total Rs Grand Total=Rs. Lacs + Lacs = Rs. L ac 4. Section IV. MACHINERY, EQUIPMENTS & INFRASTRUCTURES. Cost (Rs. in Lacs) incl usive S. Quantity of taxes, Name of Machine No. (in Nos.) transportation, electrical motors &. accessories etc. A Production Machines/ Equipments 1 Power Press pillar type100 tons cap 1. 2 Power Press pillar type 50 tons cap 1. 3 Lathe Machine 6 ft GOB type 2. 4 Mig Welding Set 3 sets 5 Pillar type drilling machine 30 mm 1. 6 Pillar type drilling machine 25 mm 1. Bench Grinders & Bench Drilling lacs 7 2 each Machines 8 Lathe machine light duty ft 2no 13 Air compressor 100 PSIG 1. 14 Paint booth cum Oven 1. Tools & Dies, Hand tools, Jigs &.
6 15 - fixtures etc 16 Diesel Generator,50 KVA 1. B. Testing Machines & QC Equipm ents Inspection & measuring 1 - Lacs instruments, Jigs & Gauges Other Infrastructures Pre-Operative Expenses S. Quantity Cost Name of Machine No. (in Nos.) (Rs. in Lacs). 5. 1 Manpower/ Professionals - Conveyance &. 2 - Communication Expenses 3 Miscellaneous Expenses - Installation & Electrification Expenses S. Quantity Cost Activity No. (in Nos.) (Rs. in Lacs). Installation & Electrification 1 Expenses for machines & - equipments Office Equipments etc. S. Quantity Cost Equipments No. (in Nos.) (Rs. in Lacs). Office equipments, gadgets, 1 - computers & furniture etc. Grand Total - Rs Lac Section V. HUMAN RESOURCE REQUIREMENT. Staff & Personnel per Month S. Am ount/ Salary Designation Nos. No. per m onth 1 Manager 1. 2 Marketing / Sales Executive 2. 3 Supervisor/ Foreman 2. 20 Lacs 4 Accountant/ Computer Operator 1.
7 5 Skilled Workers 9. 6 Semi-Skilled Workers/ Helpers & Peon etc. 9. Perks/ Welfare Expenses Total 6. Section VI. OTHER RECURRING EXPENSES & WORKING CAPITAL. Raw Materials Requirement per Annum S. Amount Item No. (Rs. in Lacs). Steel sections, rods/ bars, channels, angles, flats, 1 forgings &CI castings etc 2 Tynes, Springs, Discs, Fasteners Hardware, Bearings 3 Welding consumables, Chemicals, Primers, Paints etc 4 Packaging Materials Utilities per annum S. Am ount (Rs. in Item No. Lacs). 1 Electricity expenses 2 Water expenses etc. 3 Diesel expenses Total Other expenses per annum S. Am ount (Rs. in Item No. Lacs). 1 Advertisement & Publicity 2 Repair & M aintenance 3 Selling Expenses 4 Telephone & Communi cation 5 Stationary & Postage etc. 6 Insurance 7 POL & Consumables 8 Other Misc. Expenses Total Working Capital Requirement 7. S. Average Am ount Particulars No.
8 Period (Rs. in Lacs). 1 Raw Materials in stock 1 week Salaries, Utilities & other expenses in 2 2 months stock 3 Finished Goods in stock half week 4 Work in process 1 week 5 Market/ Outstanding Debtors 2 week Total Section VII. PROJECT COST & MEANS OF FINANCE. Total Capital Investment Amount S. No. Item (Rs. in Lacs). 1 Land & Building Cost of Machinery, Infrastructures and Pre - 2 operatives 3 Working Capital Requirement Total Means of Finance S. Amount Item No. (Rs. in Lacs). A) Fixed Capital Term Loan on Land, Building, Machinery, 1 Infrastructures & Pre -Operatives @ 75% from financial corporations/ bank 2 Own share/ equity @ 25% Total B) Working Capital Working Capital loan in the shape of working 1 capital limit @ 75% fro m bank 2 Working Capital equity/ own share @ 25% Total 8. Section VIII. COST OF PRODUCTION & SALES REALIZATION. Cost of Production per annum S.
9 Am ount Item No. (Rs. in Lacs). 1 Cost of Raw Materials Other recurring expenses salaries, other 2 expenses and utilities 3 Interest on working capital loan @ 10 % 4 Interest on fixed capit al @ 10 % Depreciation on Machinery & Equipments @ 10 %. 5 averagely 6 Depreciation on building @ 5 % Total Turnover & Sales Realization per annum S. Qty . in Avg Ra te Am o un t Na m e o f I tem No . No s (R s i n tho u sa nd s ) (R s. in La c s). 1 S p rin g Typ e Ti lle r s - 9 t yn es 100 10 10. 2 S p rin g Typ e Ti lle r s - 1 1 tyn e s 150 12 18. 3 Rig id Typ e Ti lle r s 9 ty n es 200 8 16. 4 Rig id Typ e Ti lle r s 1 1 t yn es 100 10 10. 5 Di sc Ha rro w s P la n e 1 2 Di sc s 100 24 24. 6 Di sc Ha rro w s P la n e 1 4 Di sc s 100 26 26. 7 Di sc Ha rro w s P la n e 1 6 Di sc s 100 28 28. 8. Di sc Ha rro w s T ra i led o f fs et 1 2 Di s cs 100 25 25. 9 Di sc Ha rro w s T ra i led o f fs et 1 4 Di s cs 100 27 27.
10 10 Di sc Ha rro w s T ra i led o f fs et 1 6 Di s cs 50 28 14. 11 Mo u n t ed O ff se t Di sc h a r ro w - 1 2 Di sc s 100 26 26. 12 Mo u n t ed O ff se t Di sc h a r ro w - 1 4 Di sc s 50 28 14. 13 Mo u n t ed O ff se t Di sc h a r ro w - 1 6 Di sc s 50 30 15. To ta l R s. 2 4 8 La c s 14 S c ra p 8 To n s @ R s .2 5 0 0 0 p er To n R s. 2 .0 0 La c s 9. Gra nd To ta l R s. 2 5 0 .0 0 La c s Section IX. PROFITABILITY, FINANCIAL VIABILITY RATIOS & ANALYSIS. Profitability per annum (before tax). Amount Particulars (Rs. in Lacs). Sales Realization Less (Cost of Production) Net Profit per annum before tax Rs. Lacs Rate of Return on total Capital Investment x 100 Rate of Return on Sales Realization x 100 Break Even Analysis at 100% Capacity Utilization Am ount Particulars (Rs. in Lacs). Fixed Cost per annum Interests Depreciations Insurance 40 % Salaries, Other expenses & utilities except insurance Total - %.