A PROJECT PROFILE ON “PVC CABLE”

 

NIC CODE (2004)                 : 31300

ASICC PRODUCT CODE    : 77471

PRODUCTION CAPACITY : 36000 coils per year

MONTH & YEAR OF PREPARATION   : October 2010

PREPARED BY: -        ELECTRICAL DIVISION
MSME-DEVELOPMENT INSTITUTE
BAMUNIMAIDAN, GUWAHATI-21
Ph. 0361-2550073/83/298 fax: 0361-2550052

 

 

PVC  Cable

Product and its use :

The product is extensively used for domestic wiring and wiring for lighting circuits in the factories.

Market Potential :

            In the global market performance of the Indian product is acknowledged as technically at par with the leading international companies. On implementation of Accelerated Power Development Reform Programme (APDRP) and introduction of Accelerated Rural Electrification Programme( AREP), increased apartment constructions, house buildings, the need for electric cables are bound to increase and would be responsible for increased business potential for the industry.

Although there are some units working, there is good scope for small scale units in this line for increased demand day by day.

Raw Material  :

Sl.No

Name of the Material

1.

Aluminium Wire

2.

Copper wire

3.

GI Strip

4

Cable powder

5

Master Batch

6

Paints & painting Ink

7

PVC Tap

8

PVC, XLPE

9

Aluminum Alloy Rod

10

Galvanized Steel Wire

11

PH paper

12

Glycerin, Copper Sulphate, Zinc

13

Antimony tri-oxide; Tri-Chloride

14

HCL ; Naphtha ; Alcohol

15

Trichloroethylene

16

Distilled water

Brief Operation Description :

                                     Conductor ( Copper & Aluminium )
h                                                                                                           
( Conductor Resistance & tensile test)
Conductor bunching
h                                                                                      ( Conductor Resistance Test)
PVC Insulation
h                                                             
(Dimension Thickness)
Spark Test
h 




Laying of Cores      
h 

(Lay Direction Sequence of Cores)
h                                                   Outer Sheath

                                                                                     (Dimension Thickness Test)
h                                                     Final Testing            ( All Types of test)

                                                           
h                                                         Packing

                                                                                     (Final identification)
final dispatch

 

Basis and Presumptions :

  1. The basis of calculation of production capacity is on single shift basis, working of 25 days per month on 75% efficiency. The time required for achieving envisaged capacity utilization is assumed as per one year.
  2. B.E.P. for the unit is calculated on full capacity utilization.

 

  1. Rate of interest is taken 16% on an average. However this may be different depending on the financial outlay and location of the unit.
  2. Labor wages are taken on the minimum applicable. These likely to change depending upon location of the unit.
  3. Margin money requirement differs from institution to institution and type of entrepreneur such as woman, SC/ST, Physically handicapped etc.
  4. Terms of loan differs from one institution to other. the exact may be found out by the entrepreneur.
  5. The cost of machinery and equipments as indicated in the scheme are approximate to those ruling at the time of preparation of the scheme. The entrepreneur may check up the exact price for specific make and model of the machine selected.

Motive Power Requirement     :            100 KW

 

Total Production                      :           36,000 nos. of coils

Energy Conservation Requirement :

            With the escalating demand for energy to sustain the place of economic development of our country, energy conservation is not only desirable but absolutely imperative.
Every user of energy is a potential saver of energy. It is profitable and obligatory upon every user to use energy efficiently.
The following steps may help in conservation of electrical energy:

  1. Adoption of energy conserving technologies, production aids and testing facilities.
  2. Efficient management of process/manufacturing machineries and systems, QC and testing equipments for yielding maximum energy conservation.
  3. Optimum use of electrical energy for heating during soldering process can be obtained by using efficient temperature controlled soldering and desoldering stations.
  4. Periodical maintenance of motors, compressors and other power driven equipment, lubrication of motors and motor drives regularly; use of power factor correction capacitors across the motor terminals and tightening of the belt and pulley at regular intervals should be done to improve the efficiency of the system. Also, the motors should have good quality insulation to minimize the leakage currents and sparks.

Lighting

    1. Proper selection and layout of lighting system.
    2. Timely switching on-off of the lights.
    3. Use of fluorescent tubes with electronic ballasts instead of incandescent lamps (it is reported that the fluorescent tubes with electronic ballasts can save energy up to 35-40% over the conventional chokes used in the tube lights)
    4. Proper maintenance of the lighting system with periodical cleaning of tubes and fixtures.
    5. Energy Auditing at Regular Intervals.

 

            The energy conservation measures should taken care of and apply in the unit.

Pollution Control :  The Government accords utmost importance to controlling environmental pollution. The small scale entrepreneurs should have an environmental friendly attitude and adopt pollution abatement measures by process modification and technology substitution. Awareness among the staff members of the industrial undertaking should also be created for abatement of pollution.India having acceded to the Montreal Protocol of 1992, it has become mandatory for India to phase out the production and use Ozone Depleting Substances (ODS) like Chlorofluoro Carbon (CFC), Carbon Tetrachloride, Halons and Methyl Chloroform etc. These chemicals/solvents are to be phased out immediately with alternative chemicals/solvents. From phase out angle, we may have ten years to go, but from commercial angle immediate phase out is of utmost importance.

                       
FINANCIAL ASPECTS :

Land and Building :

                1000 sq .m. space for the purpose of manufacturing and stocking of materials
@ Rs25/- per sq.m.                                                                                 Rs 25,000/-

FIXED CAPITAL :

    • Machinery and Equipments :
    1. Machinery and Equipments :

    Sl. No.

                           Name

    Qty(no).

    Rate(Rs)

    Total (Rs)

    1

    PVC Extruder 65 mm with control panel & die head

    1

    6,00,000/-

    6,00,000/-

    2

    PVC Extruder 90 mm for PVC cable lacting  with cater piller, tank

    1

    12,60,000/-

    12,60.000/-

    3

    Semi automatic coil wdg. M/c

    1

    20,000/-

    20,000/-

    4

    7 Strand Tubular Stranding machine

    1

    3,00,000/-

    3,00,000/-

    5

    Sequential printing machine with complete accessories

    1

    55,000/-

    55,000/-

    6

    Extrusion dies of various sizes

    L.S.

    20,000/-

    20,000/-

    7

    High speed Bunching machine

    1

    2,00,000/-

    2,00,000/-

    8

    Coiling & De-coiling machine

    1

    50,000/-

    50,000/-

    9.

    Air Compressor

    1

    65,000/-

    65,000/-

    10.

    1+ 4 laying machine; pay off take up with armoring

    1

    7,50,000/-

    7,50,000/-

    11

    Control panel with operator stn.

    1

    3,00,000/-

    3,00,000/-

    12

    Wire Rope electric hoist 3 ton capacity

    1

    70,000/-

    70,000/-

    13

    High speed mixer machine

    1

    40,000/-

    40,000/-

    14

    Other accessories like Galvanized steel, Pipe, steel tube etc.

     

     

    50,000/-

    15.

    Digital Tensile Testing machine ( 0-2500N)

    1

    2,00,000/-

    2,00,000/-

    16.

    Kelvin Bridge with Spot galvanometer (0.2 micro-ohms to 11 ohms)

    1

    10,000/-

    10,000/-

    17.

    Million Mega Ohms meter (1-100x10^5 mega-ohms; 0-600 V DC)

    1

    15,000/-

    15,000/-

    18.

    Hot Air Oven Thermostatically controlled with digital thermometer & Hour meter ( up to 250°c & 0-99999 Hr)

    1

    22,000/-

    22,000/-

    19.

    Ageing Oven with air flow meter digitally temp. controller & hour meter       ( up to 250°c; 0.1-1 LMP; 0-99999 hr)
    Water bath with digital temp. controller( up to 100°c; 0-99999 hr)
    Humidity controller conditioning chamber (-20°c to 50°c; 0-99%)
    AC High voltage tester( 0-5/10 KV at 22 KVA)
    Dumble cutting press with die
    Flammability test apparatus with scale and gas burner (0-600 mm)
    AC spark tester ( 0-15 kV/1 KVA)

    1

     

    2,30,000/-

    1

    1

    1

    1

    1

    1

    20

    Hot Deformation test apparatus
    Cold bend test mandrels
    Heat shock test mandrels
    Cold impact test apparatus
    Traveling Microscope 10x ( 0-170mm)
    Digital Vernier Caliper ( 0-150 mm)
    Digital Micro meter (0-25mm)
    Electrical weigh balance (0-200gm)
    Digital thermal stability with PH paper (0-400°c ; 0-10ph)
    Standard Mega ohm box
    Standard resistance box (0.001-1 Kohm)
    Hot set Oven ( 200°c ; 2-20 LMP)
    Digital milli-ohm meter (0-199.9 mohm/1.999 ohms)

    1

     

    1,50,000/-

    1

    1

    1

    1

    1

    1

    1

    1

    1

    1

    1

     

    1

                                                                                                     Total=Rs.4,407,000/-

     

    B.            Electrification and Installation @ 10% of M/c and Equipment   = Rs.4,40,700/-
    C.            Cost of Furniture and fixtures, office  accessories                      = Rs.   70,000/-
    D.            Pre-operative Expenses                                                           = Rs.   30,000/- 

                                                             Total    =Rs.4,947,700/-

     

      • Raw Material ( Per month ) :

      1. Raw Material ( Per month ) :

       

      Sl.No

               Name of the Material

      Qty. (nos.)

      Rate (Rs)

      Total  ( Rs. )

      1.

      Aluminium Wire

      2 MT

      80000/-

      240000/-

      2.

      PVC Compound

      3 MT

      50000/-

      150000/-

      3.

      Polymer outer sheath compound

      1 MT

      26000/-

      26000/-

      4

      Master Batch

       

       

      10000/-

      5

      Paints & painting Ink

      45 litrs.

      50/-

      2250/-

      6

      PH paper
      Glycerin, Copper Sulphate, Zinc
      Antimony tri-oxide; Tri-Chloride
      HCL ; Naphtha ; Alcohol
      Trichloroethylene
      Distilled water

       

       

      5000/-

      7

      8

      9

      10

      11

      12

      Packaging materials

       

      5/coil

      15000/-

                                                                                                Total =      Rs.4,48,250/-

       

       

      1. Staff and Labour ( Per month ) :

       

      Sl. No.

                  Category

       No.

       Rate ( Rs.)

       Total ( Rs. )

      1

      Works Manager

      1

      8,000/-

      8,000/-

      2

      Officer sales

      1

      8,000/-

      8,000/-

      3.

      Semi Skilled labour

      3

      4,000/-

      12,000/-

      4.

      Skilled labour

      3

      5,000/-

      15,000/-

      5.

      Accountant/Clerk

      1

      5,000/-

      5,000/-

      6.

      Peon / watchman

      1

      2,500/-

      2,500/-

                                                                                         Total      = Rs.50,500/-
      Add 15% perquisites                            = Rs.  7,575/-
      _____________________
      Total                          = Rs.58,075/-

      1. Other Expenses ( Per month ) :

      Sl.No.

                   Name

        Total ( Rs. )

      1.

      Rent

      25,000/-

      2.

      Telephone & Postage

        3,000/-

      3.

      Transportation

        5,000/-

      4.

      Insurance

        2,000/-

      5.

      Other Consumables

           10,000/-

      6.

      Sales expenses

      3,000/-

      7.

      Repair & Maintenance

      5,000/-

                                                                           Total  =  Rs. 53,000/-

      1. Utilities ( Per month ) :

       

      1.     Electricity                                               = Rs.35,000/-
      2.     Water                                                     = Rs.  5,000/-
      ____________________________
      Total                       = Rs 40,000/-

      TOTAL WORKING CAPITAL                              = Rs.5,99,325/-

      WORKING CAPITAL FOR 3 MONTHS               = Rs.17,97,975/-

       

      TOTAL CAPITAL INVESTMENT

      1.             Fixed capital                                                                                         = Rs. 49,47,700/- 
      2.             Working capital ( for 3 months )                                                       = Rs. 17,97,975/-
      ______________
      Total                       = Rs.67,45,675/-

      FINANCIAL ANALYSIS

      A. COST OF MANUFACTURING ( Per Annum )

      1.             Total recurring cost                                                             =  Rs.71,91,900/-
      2.             Interest on capital investment @ 16%                             =  Rs.10,79,308/- 
      3.             Depreciation @ 10% on m/c and equip.                         =  Rs.  4,94,770/-
      4.             Depreciation @20% on furniture & fixtures                   =  Rs.      14,000/-
      ___________________________
      Total   =  Rs.87,79,978/-

       

      B. TOTAL SALES ( Per Annum ) :

      By sale of 36,000 nos of coils of 100 mts. Each @ Rs.275/- per coil = Rs.99,00,000/-

      C. NET PROFIT (per year) :(Total sales -  Cost of production   =Rs.11,20,022/-

      D. Net profit ratio = Profit x 100 / sales                                            =         11.3%

      E. Rate of return = Net profit x 100 / Total Investment  =             16.6%

      BREAK EVEN ANALYSIS

      FIXED COST :

      1.             Rent                                                                        = Rs.3,00,000/- 
      2.             Insurance                                                              = Rs.   24,000/-   
      3.             Total Depreciation                                               = Rs.5,08,770/- 
      4.             Interest on investment                                        = Rs.10,79,308/-  
      5.             40% of salaries and wages                         = Rs.2,78,760/-  

      1.       40% of other expenses except rent

      and insurance                                      = Rs.2,54,400/-
      ______________________________
      Total = Rs.24,45,238/-       

       

      B.E.P. =  fixed cost x100/ Fixed cost + profit  =             68.5%   

       

      SUPPLIER OF MACHINERY :

       

      1. M/s Amit Plast Machines Pvt. Ltd. 6, S.F.S. category II DSIDC Industrial Area Nangloi,
        Delhi-41
      2. M/s Sant Engg. Industries, 29 E/S Galli no. 6 Anand Prabhat Industrial area, N Delhi -5
      3. M/s M.A.Enterprises 545/1B, 1st floor, Lal batti chowk street no.1 Viswas Nagar, Sahadara, Delhi-32
      4. M/s Guru Nanak Engg. Works WZ-59 Tilak Nagar, New Dellhi-18
      5. M/s Metallech Enggs., 171 Papat Ganj Village Delhi-91
      6. M/s Muddar Engg. Works, F-85 Mayapuri Industrial Area, phase II, N Delhi 64
      7. M/s Shive Industries (I), 225/4 Ambedkar Nagar, Halder pur, Delhi 88
      8. M/s Technofab Enggs. 9/94 Shastri gali Viswas Nagar, Shahdara, Delhi-91
      9. M/sDwivedi Engg. Works KH no.152 Jagat Complex Village Rithala, Delhi
      10. M/s Coronet Enggs. Pvt. Ltd. 14 industrial Area Tilak nagar, Behind Subhas nagar metro,
        N. Delhi 18

      SUPPLIER OF RAW MATERIALS

       

      1. M/s Apar Pvt. Ltd., 184, Golf Link Area, NewDelhi
      2. M/s National Insulated Cable Co. (I) Ltd., Hare Street, Kolkata
      3. M/s Indian Aluminium Co. Ltd., UBI Bldg., Parliament Street, New Delhi
      4. M/s Calico Plastics Ltd., Anik chambers, Mumbai

      The Packaging material are locally available in the market.

 


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