A. INTRODUCTION HOSE CLIPS Hose clips are used for connecting and tight fixing of hose or hose couplings. These are metallic tightening band used for a firm hose connection. It gives a guarantee for a connection and tightening on whole circumference of the hose. For connecting high pressure hoses two tightening bands next to each other are used. B. PRODUCT USES & SPECIFICATION The hose clips are used in all vehicles engines and machine parts wherever fluid, liquid, or gas flow is present. Hose clips are available in different dia and length. The popular varieties are given below: Hose clip Dia (mm) Length (mm) Length of perforation in mm Hose clip - 1 15-20 mm 70 40 Hose clip 1A 20-26 mm 100 40 Hose clip - 2 25-40 mm 140 60 Hose clip - 3 38-55 mm 190 80 Hose clip - 4 50-65 mm 225 80 C. MARKET POTENTIAL The product to be manufactured belong to the engineering sector and the general engineering sector has been growing well all these years at faster rate. There is continuous demand for this product as it is consumed in all engineering workshops. A strong engineering base exists in the state of Tamilnadu involving products ranging from automobiles, bicycles, castings and forgings, to textile machines, electrical and non-electrical machinery, pumps and transportation equipment. Engineering ancillary industries are concentrated in Chennai, Coimbatore, Salem, etc. The exports of engineering products from Tamil Nadu is around Rs.14.50 billion (US $ 320 million) of which automobile ancillaries along contribute around US $ 150 million. It is an established fact that the automobile industry in the state accounts for nearly 50% of the All India export market. The strong engineering base consists of a network of nearly 1
3,000 units, employing a skilled workforce of more than 2.5 lakh, making high quality inputs such as castings and forgings and a wide variety of ancillary products. Intensive efforts are being made to boost further development of this industry. D. TECHNICAL ASPECTS 1. Installed capacity The installed capacity proposed is 5000 pieces hose clips per day, 8 hours per shift per day. For 300 days of working per annum this works out to 15,00,000 pieces. 2. Plant and Machinery The machinery list is given below: Description Qty. (Nos.) Value (Rs.lakhs) Fully automatic threading machine 2 4.80 with de coiler & automatic cutting Power Press 5 ton capacity. 1 1.75 Die Set,Sheet cutting, Spoon,Name. 1 0.20 Die set for Small cap ½ to 4 2 0.68 clamp Rounding Attachemnt for ½ to 3 1 0.18 clamp Rounding Attachment for 3 to 12 1 0.20 clamp Screw inserting attachment 1 0.10 Misc Tools 0.19 Total 8.10 3. Manufacturing Process The manufacturing process of wood screw is as follows: Purchase of CRCA sheets Cutting Pressing in power press and forming band Welding of screws to band 2
Mounting and shaping press Galvanization Job work. 4. Raw Materials The raw material required is CRCA (Cold Rolled Annealed) steel sheets. The requirement is about 38 MT per annum. Besides this screws/nuts have to be bought out. This is estimated to cost about Re.0.30 per piece. The galvanizing can be done on job work basis. 5. Land & Building A Built up area of 1000 sqft. is required this may be taken on rental basis Rs.5000 per month. Advance Rs.50000. 6. Utilities Power: A power load of 20 HP is sufficient for the operation of the M/c. Water: Water is requirement human consumption only. Man Power: Category Nos. Monthly Total Salary Salary p.m. Supervisor 1 5000 5000 Skilled workers 2 3000 6000 Helpers 4 2000 8000 Assistants 2 3000 6000 Security 4 2000 8000 -------- 33000 Add: 20% benefits 6600 -------- 39600 -------- Total salary per annum (Rs.lakhs) Rs.4.75 lakhs 3
7. Implementation Schedule As the machines and materials are available indigenously, the project can be implemented within 3 months period if financial arrangements are made. 8. ASSUMPTION Installed Capacity per annum at100% Hose clips 15,00,000 piece p.a. Capacity utilization - Year 1 60% - Year 2 70% - Year 3 80% Selling price per unit Hose clips Rs.3.00/piece Raw Material required p.a. Qty Rate (Rs.) Value (Rs.lakhs) CRCA steel sheet (5% wastage) 37.73 MT 33,000/MT 12.45 Nuts/screws 15,00,000 Re.0.30 4.50 Galvanizing (job work) 15,00,000 Re.0.30 4.50 Total 21.45 Consumables cost p.a. at 100% (Rs.lakhs) Rs.1.20 lakhs Power & Fuel at 100% (Rs.lakhs) Rs.1.61 lakhs Wages & Salaries (Rs.lakhs) Rs.4.75 lakhs Repairs & Maintenance per month Rs.2,000 p.m Depreciation Straight Line method Administrative & General expenses p.m. Rs.10,000 Selling expenses 3% Interest on Term loan and Working capital 14% finance 4
LIST OF MACHINERY SUPPLIERS 1. Indian Machine Tools K-69/B, Bal Udyan Road Uttam Nagar New Delni-110 059 2. Power Hydraulics, Plot 10-c, 1 st Main Road, Thirumalaipriya Nagar, Pudur, Ambattur, Chennai 600 053 3. Krishna Engineering works, 81/2, Guruvappa Cheety Street, Chennai 600 002 4. Orient Machine Tools New 269(old no 130) Linghi Chetty Street Chennai-600 001 5. Quality Machine Tools New 238 Linghi Chetty Strret Chennai 600 001 6. Gujrat Machine Tools New 279, Linghi Chetty Street Chennai 600 001 LIST OF RAW MATERIAL SUPPLIERS 1. Sai Steel Centre 28-A, Mooker Nallamuthu Street Chennai-600 001 2. Mahavir Indusrial Corporation New 273, Linghi Chetty Street Chennai-600 001 3. Bhagawandas Metals ltd No.54, Sembudoss street Chennai-600 001 4. Southern Iron and Steel company ltd No.7, Wallace garden Second Street Chennai-600 006 5
5. P.K.Vaduvammal 97, Rasappa Chetty Street Chennai-600 003 LIST OF GALVANISERS 1. T.M.Radhakrishnan & Sons New Noo 28, Ponnapa Chetty Street Park Town Chennai-600 003. 2. Hindusthan Industries No.532, 1-B Vanagaram Road Ambattur Chennai-600053 3. Gulshan Engineers Pvt ltd Kannabiram Chatram Madhavaram Chennai-600 118 4. Prestige Industries No.10, Milk Colony Chennai-600 118 6
1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 0.50 Plant & Machinery 8.10 Other Misc. assets 0.50 Pre-Operative expenses 0.50 Margin for WC 0.94 10.54 2. MEANS OF FINANCE Capital 4.54 Term Loan 6.00 10.54 7
3. COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Years 1 2 3 Installed Capacity (No.) 1500000 1500000 1500000 Utilisation 60% 70% 80% Production/Sales (No.) 900000 1050000 1200000 Selling Price/piece (in Rupee) 3 per piece Sales Value (Rs.lakhs) 27.00 31.50 36.00 Raw Materials 12.87 15.02 17.16 Consumables 0.72 0.84 0.96 Power 0.97 1.13 1.29 Wages & Salaries 4.75 4.99 5.24 Repairs & Maintenance 0.24 0.25 0.26 Depreciation 0.91 0.91 0.91 Cost of Production 20.46 23.14 25.82 Admin, & General expenses 1.20 1.26 1.32 Selling expenses 0.81 0.95 1.08 Interest on Term Loan 0.84 0.74 0.53 Interest on Working Capital 0.28 0.28 0.28 Total 23.59 26.37 29.03 Profit Before Tax 3.41 5.13 6.97 Provision for tax 1.23 1.85 2.51 Profit After Tax 2.18 3.28 4.46 Add: Depreciation 0.91 0.91 0.91 Cash Accruals 3.09 4.19 5.37 8
4. WORKING CAPITAL: [Rs.lakhs] Months Values % Margin Bank Consumption Amount Finance Raw Materials 0.75 0.80 25% 0.20 0.60 Consumables 1.00 0.06 25% 0.02 0.04 Finished goods 0.25 0.43 25% 0.11 0.32 Debtors 0.50 1.13 10% 0.11 1.02 Expenses 1.00 0.50 100% 0.50 0.00 2.92 0.94 1.98 5. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 4.46 Sales 36.00 12% Profit before Interest and Tax 7.78 Total Investment 12.52 62% Profit after Tax 4.46 Promoters' Capital 4.54 98% 9
6. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 5.24 Repairs & Maintenance 0.26 Depreciation 0.91 Admin. & General expenses 1.32 Interest on TL 0.53 8.26 Profit Before Tax (P) 6.97 BEL = FC x 100 8.26 80 x FC +P 15.23 100 x 100 43% of installed capacity 10