Introduction

Project report for Mobile headset/Charger manufacturing. Indian appliance and consumer electronics (ACE) market reached Rs 2.05 trillion (US$ 31.48 billion) in 2017. It is expected to increase at a 9 per cent CAGR to reach Rs 3.15 trillion (US$ 48.37 billion) in 2022. Electronics hardware production in the country reached Rs 3.88 trillion (US$ 60.13 billion) in FY18, growing at a CAGR of 26.7 per cent between FY14-18. Demand for electronics hardware in India is expected to reach US$ 400 billion by FY24. There is a lot of scope for growth from rural markets with consumption expected to grow in these areas as penetration of brands increases. Overall consumer durable exports reached US$ 0.78 billion in 2017. Consumer electronics exports from India reached US$ 362.12 million in FY18 and US$ 267.15 million between Apr-Nov 2018. Consumer electronic goods are likely to witness growing demand in the coming years in the rural markets as the government plans to invest significantly in rural electrification.

Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the consumer market. The Government of India's policies and regulatory frameworks also help the electronic industry in a big way. India is likely to emerge as a potential future manufacturing hub for the region, provided the government shows adequate support and focus towards this sector. Specific factors anticipated to push the manufacturing in India are inclusive of, reduction in borrowing costs, export incentives, reduction of customs duties on raw materials and components, and improvement in the ease of doing business. India is the second largest mobile phone user base in the world but the accessories market is unorganised as one company is selling cable, other is selling earphones. India mobile accessories market is forecast to grow at a CAGR of over 10% to by 2023, on account of increasing inclination of customers towards advanced, safe and secure accessories for their mobile phones. Moreover, rising penetration of smart devices across the country, growing demand for technologically advanced mobile accessories, along with increasing R&D investments in wireless connectivity are a positive indicators. North India is poised to record the fastest growth over the forecast period. Factor such as, huge portion of 30% of mobile phone accessories market revenue in North India is anticipated to drive the growth of India mobile accessories market over the forecast period. Moreover, different mobile phone accessories are companionable with the laptops and computer systems which are expected to increase the growth of the India mobile phone accessories market over the forecast period.

Location, Land , Building & Utilities

Product / Services & process

In India various companies bought finished goods i.e.,ear phones, data cables etc from china. But our concept and strategy is different. We approach the customers and offeres them that they do not need to import finished goods from china instead they have to import Raw Material from china. Indian electronics market is growing rapidly and very high demand on headsets, battery chargers, data bank etc. People needed this products at a throwaway price, so that manufacturing the components in India is not a viable option and also importing these products from China is more costlier than assembling it in India. Normally the cost of finished goods from china to India is minimum Rs.25. On the other hand the cost of raw material from china to India is minimum Rs.11. So there is a great opportunity for people who assemble the product in India. Indian mobile accessories market is forecast to grow at a CAGR of over 10% to by 2023, on account of increasing inclination of customers towards advanced, safe and secure accessories for their mobile phones. Moreover, rising penetration of smart devices across the country, growing demand for technologically advanced mobile accessories, along with increasing R&D investments in wireless connectivity are a positive indicators. The firm is going to tap that market which is highly growing. According to a recent Frost & Sullivan report, the mobile headset market in India is expected to grow at a CAGR of 21% over the next five years. North India is poised to record the fastest growth over the forecast period. Factor such as, huge portion of 30% of mobile phone accessories market revenue in North India is anticipated to drive the growth of India mobile accessories market over the forecast period. Moreover, different mobile phone accessories are companionable with the laptops and computer systems which are expected to increase the growth of the India mobile phone accessories market over the forecast period.

Plant & Machinery / Equipments

Teksuom needs the following machinery inorder to start the operation in full swing

Machinery Type	Number of units needed
Conveyers line of 50 feet	10
Injection molding machine 25ton each	6
Molding Die tools 8 cavity each	12
Stools for manpower	600
Automatic Connector soldering machine	4

Market potential & Strategy

India is likely to emerge as a potential future manufacturing hub for the region, provided the government shows adequate support and focus towards this sector. Growth in the India consumer electronics market can be attributed to increases in demand from households, changing lifestyles of individuals, easier access to credit, and rising disposable incomes. Intentional reduction by the Government in the import bill, coupled with government and corporate spending is anticipated to complement the positive demand in this market. The India consumer electronics sector has attracted several strong investments in the form of merger & acquisition policies practiced by key participants of the global market and other FDI inflows. In India various companies bought finished goods i.e.,ear phones, data cables etc from china. But our concept and strategy is different. We approach the customers and offers them that they do not need to import finished goods from china instead they have to import Raw Material from china. According to a recent Frost & Sullivan report, the mobile headset market in India is expected to grow at a CAGR of 21% over the next five years. Music and mobile phones have reached people. The only missing link is the headphone/earphone. Market for headphones is pretty good in India, but almost everyone still use cheap, unbranded earphones. Surprisingly, only 0.5 per cent of the Indian population actually use branded headphones or earphones for consuming music.

Positioning

We position ourself as an assembler who helps increases profit for the manufacturers, which helps the manufacturers in the following way. Normally the cost of finished goods from china to India is minimum Rs.25. On the other hand the cost of raw material from china to India is minimum Rs.11. So if the customer imports raw material from china, he will get the following benefits:

Project at a glance

Name & Address of Unit

Mobile headset, charger mnufacturing

Address

Details of unit

Email	:	[email protected]
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		: Nmae
Address		: Address
Phone		: 00000
Designation		: Proprietor
E-mail		: [email protected]

Project Feasibility Ratios

Debt Service Coverage Ratio (Average)

:1.87

Current ratio (Average)

:2.63

	Year 1	Year 2	Year 3	Year 4	Year 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

Net profit Sales %

Quick ratio

Revenue v/s Expense

Expense Splitup

Project Cost

Sl. no	Item	Amount Rs
1	Building advance	*******
2	Soldering and assembling tools	*******
3	Stools for line workers	*******
4	LED production line	*******
5	Automatic Connector soldering machine	*******
6	Molding tools	*******
7	Conveyor	*******
8	Injection moulding machine	*******
9	Racks and furnitures	*******
10	Computer, printer and ups	*******
11	Electrification and cabling	*******
12	Preliminary expenses	*******
13	contingencies	*******
14	Other expenses	*******
15	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	Revenue from Sales	*******	X	12	Month	*******
	Total					*******

Total Yearly Expense

Sl. no	Item	Amount Rs
1	Rent	*******
2	Salary	*******
3	Manager	*******
4	Repairs & Maintanance	*******
5	Electricity	*******
6	Office expense & utilities	*******
7	Raw materials	*******
8	Stationary	*******
9	Marketing/Advertisement	*******
10	Postage & Telephone, internet	*******
	Total	*******

Application of Fund

Sl. no	Item	Subsidy %	No.	Rate	Amount Rs
1	Building advance	*******	1	*******	*******
2	Soldering and assembling tools	*******	1	*******	*******
3	Stools for line workers	*******	600	*******	*******
4	LED production line	*******	1	*******	*******
5	Automatic Connector soldering machine	*******	4	*******	*******
6	Molding tools	*******	20	*******	*******
7	Conveyor	*******	10	*******	*******
8	Injection moulding machine	*******	8	*******	*******
9	Racks and furnitures	*******	1	*******	*******
10	Computer, printer and ups	*******	1	*******	*******
11	Electrification and cabling	*******	1	*******	*******
12	Preliminary expenses	*******	1	*******	*******
13	contingencies	*******	1	*******	*******
14	Other expenses	*******	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	15.93	*****	*****	*****	*****	*****
Add :
Closing stock		*****	*****	*****	*****	*****
Total		*****	*****	*****	*****	*****
Less :
Opening stock		*****	*****	*****	*****	*****
Stock purchase	7.20	*****	*****	*****	*****	*****
Salary	3.60	*****	*****	*****	*****	*****
Repairs and maintenance charges	0.24	*****	*****	*****	*****	*****
gas	0.12	*****	*****	*****	*****	*****
ELECTRICITY bill	0.12	*****	*****	*****	*****	*****
Total		*****	*****	*****	*****	*****
Gross profit		*****	*****	*****	*****	*****
Less :
Rent	0.12	*****	*****	*****	*****	*****
Telephone/Postal &internet charge	0.12	*****	*****	*****	*****	*****
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	*****	*****	*****	*****	*****
Subsidy	*****	*****	*****	*****	*****	*****
Termloan	*****	*****	*****	*****	*****	*****
Profit before tax with interest	*****	*****	*****	*****	*****	*****
Increase in WC loan	*****	*****	*****	*****	*****	*****
Depreciation	*****	*****	*****	*****	*****	*****
Increase in Current liability	*****	*****	*****	*****	*****	*****
Total Cash Inflow	*****	*****	*****	*****	*****	*****
Cash Outflow
Fixed Assets	*****	*****	*****	*****	*****	*****
Increase in Current asset		*****	*****	*****	*****	*****
Interest on TL	*****	*****	*****	*****	*****	*****
Interest on WC	*****	*****	*****	*****	*****	*****
Income Tax	*****	*****	*****	*****	*****	*****
Decrease in Term loan		*****	*****	*****	*****	*****
Drawing	*****	*****	*****	*****	*****	*****
Total Cash Outflow	*****	*****	*****	*****	*****	*****
Opening balance	*****	*****	*****	*****	*****	*****
Net Cashflow	*****	*****	*****	*****	*****	*****
Closing balance	*****	*****	*****	*****	*****	*****

Balance sheet

Liability	Pre operative period	Year 1	Year 2	Year 3	Year 4	Year 5
A. Share holders funds
Capital	*****	*****	*****	*****	*****	*****
Reserve & Surplus	*****	*****	*****	*****	*****	*****
B.Non current Liabilities
Termloan	*****	*****	*****	*****	*****	*****
C.Current Liabilities
Working capital loan	*****	*****	*****	*****	*****	*****
Account payable		*****	*****	*****	*****	*****
Total Liability	*****	*****	*****	*****	*****	*****
Asset
A. Non current Assets
Fixed Assets	*****	*****	*****	*****	*****	*****
B. Current Assets
Inventory	*****	*****	*****	*****	*****	*****
Trade receivables	*****	*****	*****	*****	*****	*****
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	*****	*****	*****	*****	*****
b).Depreciation	*****	*****	*****	*****	0.30
c).Interest on termloan	*****	*****	*****	*****	*****
Total	*****	*****	*****	*****	*****
Repayments
a).Loan Principal	*****	*****	*****	*****	*****
b).Interest on termloan	*****	*****	*****	*****	*****
Total	*****	*****	*****	*****	*****
DSCR	*****	*****	*****	*****	*****

Depreciation

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

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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