ELECTRONIC FAN REGULATORS
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1 ELECTRONIC FAN REGULATORS A. INTRODUCTION Fan regulators are used to regulate the speed of various types of electric fans, table fans, ceiling fans, exhaust fans industrial fans etc. The electric fan industry in nearly 75 years old. The normal fan regulator has 3 to 6 different levels of speed upon which they can function. They have capacity to control speed but not the consumption of energy. It is obvious that small amount of energy is required for rotating the fan at low speed but having no control over the consumption of electricity consumed remains the same, even if the fan is operated with low or high speed. Electronic fan regulators introduced in India about 20 to 25 years back removes both of the limitations of conventional regulators. They regulate speed to highest level without any step involved. That is every point of regulator makes the fan to operate at a different speed. Secondly it regulates the consumption of energy and thus saves energy wasted in the fan operated at slow speed. The electronic fan regulators do not require any transformers and are free of interference. They can be used in any type of fan available. B. PRODUCT USES AND SPECIFICATIONS Electronic fan regulator is used for regulating the speed of the table fans, ceiling fans, exhaust fans etc. Bureau of Indian Standards (BIS) has prescribed standards for the electronic Fan Regulators under IS:11037 ( Part 0)/Sec 0):1984-Electronic Type Fan Regulators Reaffirmed The unit can follow these standards while manufacturing. 1
2 C. MARKET POTENTIAL Demand for electronic fan regulator in future will depend upon the capacity of electronic fan regulator to penetrate the market of the conventional fan regulator. The conventional regulators are available in the range of Rs.50 to Rs.80 at present, while electronic regulators are in the range of Rs.150. Though the electronic fan regulators are costlier than conventional ones, as far as durability is concerned electronic fan regulators are far more durable. As far as quality aspects are concerned electronic regulators have apparently special features compared to conventional fan regulators. They operate smoothly, look more elegant, they facilitate greater choice for the speed of the fan, helps in reducing energy consumption and occupy much less space. So if thought in terms of all the aspects, in spite of high price, electronic fan regulators are more economic at and are capable of winning preference. D. TECHNICAL ASPECTS 1. Installed capacity The installed capacity of the unit is estimated at 6000 nos. p.a. of 300 days working on single shift basis of 8 hrs. 2. Plant and Machinery Qty. Value 10 MHz Oscilloscope Multimeter Hand Tool LS 3000 Total
3 3. Manufacturing Process All the bought out components like diacs, triacs, capacitors, resistors, coils etc. are assembled on a pre-designed printed circuit board and are tested for performance. The whole assembled unit is mounted in plastic casing and packed. 4. Raw Materials Raw materials required per annum at 100% capacity utilisation Qty Rate/No. Value Triac-PT Diac-32 V Resistors Ferrite core coils Potentiometer lenier Printed circuit board Casing (Plastic) Screws Solder, Screws etc. L.S Total Land & Building An area of 300 sqft. on rent. Rent Rs.2400 Advance Rs Utilities Power: Only domestic connection is required. Water: Water is required for human consumption only. 3
4 Man Power: Category Nos. Monthly Total Skilled works Helper Sales Add: 20% benefits Total Implementation Schedule The machines are obtainable from supplier within one or two weeks period. The project can be implemented within one or two weeks period. 8. ASSUMPTIONS Installed capacity is 6000 nos. Electronic Fan Regulators per annum (20 nos. per day) Selling price is assumed at Rs per piece. The normal selling prices vary between Rs to Rs per piece. Raw material cost is assumed at Rs per piece. Power charge at 100% utilisation is Rs p.a. Wages & Salaries estimated at Rs.1.58 lakhs per annum. increase of 5% is provided. An annual Repairs & Maintenance is charged at Rs.500 per month. Depreciation is calculated on WDV method. Selling, General & Adm. Expenses is calculated at Rs.5000 per month. Interest on Term Loan & working capital are not proposed Income tax is provided at 35.88% on taxable income. 4
5 LIST OF MACHINERY SUPPLIERS TESTING INSTRUMENTS 1. KALRO TRADERS, New No. 120, Moore street, Chennai LIST OF RAW MATERIAL SUPPLIERS Electronic Components. 1. Ravi Electronics & TV, No.32, Narasingapuram Street, Chennai Ayyappa Electroics, Richy Street, Chennai P.C.B 1. M.D.S. Technologies, No.1 Hussain sahib Street, K.P complex, Mount Road, Chennai FINANCIAL ASPECTS 1. COST OF PROJECT Rs.lakhs Building (Advance) 0.24 Plant & Machinery 0.33 Other Misc. assets 0.05 Pre-Operative expenses 0.10 Margin for WC 0.31 Total MEANS OF FINANCE Capital 1.03 Term Loan 0.00 Total
6 3. COST OF PRODUCTION & PROFITABILITY STATEMENTS Years Installed Capacity (Nos.) Utilisation 60% 70% 80% Production/Sales (Nos.) Selling Price Rs per piece Sales Value (Rs.lakhs) Raw Materials Power Wages & Salaries Repairs & Maintenance Depreciation Cost of Production Selling, Admin, & General expenses Total Profit Before Tax Provision for tax Profit After Tax Add: Depreciation Cash Accruals WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials % Consumables % Finished goods % Debtors % Expenses %
7 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 0.94 Sales 6.48 Profit before Interest and Tax 0.94 Total Investment 1.03 Profit after Tax 0.94 Promoters Capital % 91% 91% 7. BREAK EVEN LEVEL Fixed Cost (FC): Rs.lakhs Wages & Salaries 2.70 Repairs & Maintenance 0.08 Depreciation 0.04 Admin. & General expenses 0.66 Interest on TL Profit Before Tax (P) 0.94 BEL = FC x = x FC +P x % of installed capacity 7
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