Project report for Self priming motor manufacturing

Introduction

The self-priming sector in India, which employs more than 15 million people, next only to agriculture. Therefore, any improvements in the same sector affect a number of associated industries such as electrical, raw material, technology, skill-enhancement, etc. Small and medium-sized engineering units are engaged in the manufacture of auto components, metal parts of electronic industries, machine tools, cutting tools, sheet metal products, and fabrications, textile machinery, precision gauges and heat treatment and surface treatment instruments, etc. In the fast developing era of manufacturing industry, General Engineering Industry has its own growth. This is the time people are thinking of manufacturing of the self-priming motor or domestic flour mill and other engineering products with maximum facilities and attractively, at low cost. It can be manufactured in various attractive designs. The project report for self priming motor manufacturing describes the details on all aspect.

Product / Services & process

The proposed products of the unit are electric products. Major products/services are

  1. Self-Priming Motor

  2. Domestic Flour Mill

The products are, generally made as per orders from customers. Materials used are normal self-priming body, electric coil, hardware, wood electric penel etc.

PROCESS:

The raw materials such as self-priming body, electric coil, hardware, wood electric penel or various gauges are procured from nearby wholesale market. With the help of drawings and designers, the products are fabricated with the help of skilled workers. The work order is collected directly or through agents/ marketing executives. An advance amount will be collected at the time of receiving the work order, to ensure the commitment. Experienced workers are required for the measurements and designing. Only skilled workers can do the cutting, welding and fabrication works accurately. The work is time bound and without the help of skilled labour, the order cant execute in time...

Plant & Machinery / Equipments

The plant and machinery including tools include welding set, drilling machine, grinding machine, cutting tool, hammer, vice, chisels, furniture etc. Regarding welding sets, both gas welding as well as electrical welding sets are required. For out door works, light weight induction welding machine is also needed. The proposed machines and tools are procured from reputed machinery and tool suppliers with utmost care. The machinery/equipment required are:

Sl.No

Name of Machine/ Equipment

Manufacturer/ Supplier

Rate (in Rs.)

Quantity

Total Amt

Remarks

1

Drill Machine, CNC , Electric Testing Machine, Other Misc Equipment        NA 25,00,000 1 Nos Each 25,00,000 NA
 

 

Market potential & Strategy

The Indian Engineering sector has witnessed a remarkable growth over the last few years driven by increased investments in infrastructure and industrial production. The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of strategic importance to India’s economy. India on its quest to become a global superpower has made significant strides towards the development of its engineering sector. The Government of India has appointed the Engineering Export Promotion Council (EEPC) as the apex body in charge of promotion of engineering goods, products, and services from India. India exports transport equipment, capital goods, other machinery/equipment and light engineering products such as castings, forgings, and fasteners to various countries of the world.

The capital goods and engineering turnover in India are expected to reach US$ 125.4 billion by FY17. India exports its engineering goods mostly to the US and Europe, which accounts for over 60 percent of the total exports...

PROJECT REPORT

Self priming motor manufacturing

Address

Introduction

The self-priming sector in India, which employs more than 15 million people, next only to agriculture. Therefore, any improvements in the same sector affect a number of associated industries such as electrical, raw material, technology, skill-enhancement, etc. Small and medium-sized engineering units are engaged in the manufacture of auto components, metal parts of electronic industries, machine tools, cutting tools, sheet metal products, and fabrications, textile machinery, precision gauges and heat treatment and surface treatment instruments, etc. In the fast developing era of manufacturing industry, General Engineering Industry has its own growth. This is the time people are thinking of manufacturing of the self-priming motor or domestic flour mill and other engineering products with maximum facilities and attractively, at low cost. It can be manufactured in various attractive designs. The project report for self priming motor manufacturing describes the details on all aspect.

Product / Services & process

The proposed products of the unit are electric products. Major products/services are

  1. Self-Priming Motor

  2. Domestic Flour Mill

The products are, generally made as per orders from customers. Materials used are normal self-priming body, electric coil, hardware, wood electric penel etc.

PROCESS:

The raw materials such as self-priming body, electric coil, hardware, wood electric penel or various gauges are procured from nearby wholesale market. With the help of drawings and designers, the products are fabricated with the help of skilled workers. The work order is collected directly or through agents/ marketing executives. An advance amount will be collected at the time of receiving the work order, to ensure the commitment. Experienced workers are required for the measurements and designing. Only skilled workers can do the cutting, welding and fabrication works accurately. The work is time bound and without the help of skilled labour, the order cant execute in time. The step by step process is:

  1. Turning work of Body

  2. Electric Fittings

  3. Hardware Fittings

  4. Colour Work

  5. Packaging

  6. Dispatch

Plant & Machinery / Equipments

The plant and machinery including tools include welding set, drilling machine, grinding machine, cutting tool, hammer, vice, chisels, furniture etc. Regarding welding sets, both gas welding as well as electrical welding sets are required. For out door works, light weight induction welding machine is also needed. The proposed machines and tools are procured from reputed machinery and tool suppliers with utmost care. The machinery/equipment required are:

Sl.No

Name of Machine/ Equipment

Manufacturer/ Supplier

Rate (in Rs.)

Quantity

Total Amt

Remarks

1

Drill Machine, CNC , Electric Testing Machine, Other Misc Equipment        NA 25,00,000 1 Nos Each 25,00,000 NA
 

 

Market potential & Strategy

The Indian Engineering sector has witnessed a remarkable growth over the last few years driven by increased investments in infrastructure and industrial production. The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of strategic importance to India’s economy. India on its quest to become a global superpower has made significant strides towards the development of its engineering sector. The Government of India has appointed the Engineering Export Promotion Council (EEPC) as the apex body in charge of promotion of engineering goods, products, and services from India. India exports transport equipment, capital goods, other machinery/equipment and light engineering products such as castings, forgings, and fasteners to various countries of the world.

The capital goods and engineering turnover in India are expected to reach US$ 125.4 billion by FY17. India exports its engineering goods mostly to the US and Europe, which accounts for over 60 percent of the total exports. Recently, India's engineering exports to Japan and South Korea have also increased with shipments to these two countries rising by 16 and 60 percent respectively. Sri Lanka, Nepal, and Bangladesh have also emerged as the major destinations for India's engineering exports. Demand in the domestic market also increasing at a fast pace. A market study in this regard reveals the high potential of a general engineering unit due to the flourishing construction activities in the area and scarcity in the supply of fabricated gates and grills. Numerous industrial, educational, commercial, service and financial institutions are located around the unit. Most of the people living around the unit belong to the middle class and they have sufficient purchase power.

Marketing Strategy

Marketing is the decision making factor of any enterprise and by knowing this, the promoter has taken all possible ways to market his products and services by canvassing works from builders, contractors, and house owners. The small contractors as builders, electricians, plumbers etc. will be canvassed for work orders on a commission basis. The promoter will use his wide personal contacts also for grabbing orders. The promoter can easily understand the taste and needs of the customer due to his several years of experience, which will help him in marketing his products and maintain customer satisfaction.

 

Project at a glance

Name & Address of Unit

Self priming motor manufacturing

Address

Details of unit
Email : youremail@gmail.com
Phone : 000000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 000000
Designation : Proprietor
E-mail : youremail@gmail.com

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Investment in Building *******
2 Other Misc Equipment *******
3 Electric Testing Machine *******
4 Drilling Machine *******
5 CNC Machine *******
6 Computer and Printer *******
7 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Self Priming Motor ******* X 78000 Piece *******
2 Domestic Flour Mill ******* X 84000 Piece *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Office Rent *******
2 Office Salary *******
3 Marketing Salary *******
4 Repair of Machinery *******
5 Electricity *******
6 Other Expenses *******
7 Legal Fees *******
8 Accounting Fees *******
9 Staff Welfare Expenses *******
10 Office Expenses *******
11 Labour Insurance *******
12 Purchase of Raw Material *******
13 Labour Chagres *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Investment in Building ******* 1 ******* *******
2 Other Misc Equipment ******* 1 ******* *******
3 Electric Testing Machine ******* 1 ******* *******
4 Drilling Machine ******* 1 ******* *******
5 CNC Machine ******* 1 ******* *******
6 Computer and Printer ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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