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Introduction 3
Market 4
Basics and Presumptions 6
Implementation Schedule 6
Process of manufacturing 6
Inspection and quality control 13
Production capacity 13
Financial Aspect 14
Land & Building 14
Machinery and Equipment 14
Working capital 14
Raw Material 14
Salaries & Wages 15
Utilities 15
Total Capital Investment 16
Cost of Production Per Annum 16
Sales Per Annum 16
Profit Per Annum 16
Profitability Analysis 16
Percentage of profit on sales 16
Percentage of profit on investment 17
Break Even Point 17
Note for the Investor 18
Essential inputs before finalizing the project report 18







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A fuel tank is safe container for flammable liquids and typically part of an engine system
in which the fuel is stored and propelled (fuel pump) or released (pressurized gas) into
an engine. Fuel tanks range in size and complexity from the small plastic tank of a
butane lighter to the multi-chambered cryogenic Space Shuttle external tank.

Typically, a fuel tank must allow or provide the following:

£ Safe (UL Approved) fuel storage, there is some concern that UL (Underwriters
Laboratories) is not the final arbitor of safety.
£ Filling (the fuel tank must be filled in a secure way) No Sparks.
£ Storage of fuel (the system must contain a given quantity of fuel and must avoid
leakage and limit evaporative emissions)
£ Provide a method for determining level of fuel in tank, Gauging (the remaining
quantity of fuel in the tank must be measured or evaluated)
£ Venting (if over-pressure is not allowed, the fuel vapors must be managed
through valves)
£ Feeding of the engine (through a pump)
£ Anticipate potentials for damage and provide safe survival potential.

Current initiatives in automotive industry are driving a need for stronger and lighter
automotive panels. Light metals, such as high strength steel, aluminum alloys,
magnesium, are developed to reduce overall body weight and improve the fuel
consumption. However, their lower formability tends to create considerable problems.
Simultaneously, car designers are eager to manufacture the body panels with
increasingly complex shapes. Together, these two factors have pushed the current
sheet metal stamping technologies to their limits.

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Three kind of metal tanks are commonly found in custom cars; fuel, coolant and oil. All
cars have fuel tanks, all of these tanks are fairly good projects to exercise your metal
working skills. Generally that are neither too big, nor too complicated.

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Fuel tanks and fuel delivery components are largely outsourced by the OEMs.
Traditionally the fuel tank was delivered separately, and the automakers assembled the
pump, gauge/sensor, the filler neck, cap and delivery lines in-house.

However, in recent years, tier one suppliers have taken a complete systems approach
to fuel tanks. As in other areas of the car, fuel tank suppliers are assuming increased
responsibility for the management of lower tier component makers. This trend is most
prevalent in Europe and North America, but in India the OEMs continue to oversee most
of the assembly work.

The Fuel Tank Systems Report provides insight into the sectors developments,
including innovations in materials and processes, issues driving the sector, where the
markets shares are in each region and analysis of the major players. In addition to this,
provided with the report are company profiles, listing the contacts details, recent
financial performance and future plans of suppliers involved in the fuel tanks sector.

The market for press components is very wide as these are used in different
types of engineering industries. It is advisable for the entrepreneur to have source
linkage with medium and large industries to help in marketing.
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Efficiency & working hours considered for full capacity utilization 75% of installed
capacity 7 hours/day. Time period for achieving full/envisaged capacity utilization
3months Labour wages As per labour law. Interest rate for fixed working
capital 16 Margin money 5%.

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Within six months of financial sanction including training period




   


Normally pressed components require press tools which have to be made in the tool
rooms. The quality of the product will depend upon the design and quality to the
tooling. The general operation include, cutting the sheet to the size, pressing,
shearing, punching etc.

Sheet metal stamping is an important manufacturing process because of its high

production rate and low cost. It is a fundamental technology in automotive, heavy
vehicle and aerospace manufacture. A successful sheet metal stamping is to convert an
initially flat metal sheet into a useful part with the desired shape. Stamping failures
consist of either tearing (excessive tension) or wrinkling (excessive compression).

A successful sheet metal stamping process converts an initially flat metal sheet into a
useful part with the desired shape. The formability of a sheet metal is a complex
measure of its ability to accommodate the strains for the desired shape without failure in
a forming process. Formability depends on not only the properties of the sheet metal,
but also the process factors in a practical forming operation. Figure 1 shows a
schematic illustration of the stamping process. The basic components of stamping are a
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punch, a die (some kinds of stamping such as stretch forming may not include it) and a
set of blank holders that may or may not include draw beds. The punch draws the
initially flat blank into the die cavity to form the shape, and the blank holder restrains the
flange of the blank to prevent wrinkling and to control the metal flow into the die cavity.

Figure 1 Schematic illustration of stamping

Failure in the stamped parts is caused mainly by either wrinkling or tearing. Wrinkling,
which often occurs in the flange inside the blank-holder or in the unsupported sidewall
of the stamped part, is due to excessive compressive stresses in the plane of the sheet
that result in bulking of the sheet. Tearing, on the other hand, is nominally caused by
excessive tensile stresses in the plane of the sheet. So to accomplish the desired
deformation without failure, there are generally two ways to apply. One is to use
materials with better properties to resist wrinkling and tearing, which needs to develop
new materials with high mechanical properties. Another one is to control the strain
distribution of the stamped part. The ideal strain distribution is uniform without excessive
compressive strains and excessive tensile strains. Therefore, the metal sheet can
provide sufficient strains for the desired shape and does not reach its local failure
criteria.

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Many manufacturing methods have been developed to improve the formability in sheet
metal stamping, such as active draw bed control, active blank holder force control,
lubrication and blank optimization. They may be applied together or individually.
Although all of above methods have utility, they are basically applied to control the
metal flow and then to indirectly affect the strain distribution.

This dissertation expands on a completely new approach, electromagnetically assisted

sheet metal stamping, to improve the formability of sheet metal, which is based on the
idea of directly delivering the deformation where it is required and then controlling the
strain distribution. The key idea of this approach is the incorporation of electromagnetic
coils with conventional stamping tools, which enables the directly controlling of strain
distribution of stamped parts.

Fuel tank works as the reservoir for the engine of your automobile, which is positioned
at the rear of the chassis just below the trunk compartment. These days automotive
manufacturers are designing different versions of fuel tanks on the basis of type of
vehicle, type of fuel used, and nozzle models. Plastic high-density polyethylene fuel
tanks and metal fuel tanks are the two common forms of fuel tanks used by most of the
automobile manufacturers these days. Fuel tanks are easily susceptible to rust,
corrosion, and regular wear and tear. So, it is always better to install better quality fuel
tank in your engine to improve its efficiency, limit fuel emissions, and offers optimum
performance. The different components that form a part of fuel tank include fuel tank
drain plug,

Steel fuel tanks have been widely used since the early days of the automobile's
development. Thus, a strong history of performance, safety, low cost, and recyclability
of steel fuel tanks has been established. Despite the growth of plastic fuel tanks in
recent years, steel tanks are better suited to today's demanding environmental and
engineering performance requirements


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As the environmental restrictions on evaporative emissions increase, the manufacturing

costs for producing ultralow evaporative emission plastic tanks are increasing. In
contrast, steel fuel tanks continue to be an attractive means of achieving emission
targets at affordable cost. The worldwide steel industry has developed a variety of steel
systems to meet the specific approaches favored by automakers (e.g., pre-painted,
post-painted and bare steels). These advanced systems are durable and have improved
formability and weldability.

   

 

The global steel tank manufacturers have the ability to assist automakers in tank
design, meeting specific performance needs and in assurance testing. Furthermore, the
steel fuel tank manufacturers, equipment suppliers and steel companies can be utilized
to facilitate development and application of new technologies.

 

Evaporation of gasoline from automotive fuel systems is a major contributor toward air
pollution and its attendant health hazards. This has led national and regional
government agencies to restrict the amount of automobile evaporative emissions.
Steel's inherent impermeability is ideal for limiting evaporative emissions. In fact, steel is
now the material of choice for meeting the Partial Zero Emission Vehicle (PZEV)
requirements. In the 2005 model year, 29 PZEV-certified vehicles use steel fuel tanks.
In contrast, plastic fuel tanks are still struggling to demonstrate PZEV capability.



Steel fuel tanks have been, and continue to be, fully recyclable through an existing
infrastructure of dismantling, shredding and re-melting at steel mills. The steel recycling
infrastructure is a profitable industry and, hence, no end-of-life vehicle costs are
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incurred by vehicle makers or consumers. In contrast, the absorption of gasoline in the

walls of plastic tanks complicates their end-of-life treatment and no fully developed
recycling infrastructure is in place anywhere in the world. Plastic tanks must be either
land filled or incinerated at a significant cost. Land filling depletes valuable land
resources and together with incineration creates additional environmental concern for
toxins in the soil or air.

 

Newly developed steels and steel systems have improved formability. As a result,
complex shaped tanks can be readily manufactured by conventional stamping
processes. Many 'saddle shaped' tanks are routinely produced today from steel. A
recent design feasibility study showed that a current in-production plastic saddle tank
could be produced from steel with 4% increased fuel capacity and a proportional
increase in weight.



In addition to meeting ultra-low emission standards, it stipulates that fuel systems shall
meet a 15-year or 150,000 mile life. it in an extensive two year test program, has
demonstrated that 10 steel systems will meet both external corrosion resistance to road
environments and internal corrosion resistance to aggressive fuels.

           


The engineering space that accommodates a fuel tank is becoming increasingly

restricted and complex. Steel has the advantage of utilizing this space more efficiently
compared with plastic tanks, where allowances must be made for thermal expansion
and warpage. Additionally, the variable wall thickness of plastic tanks (ranging from 2 to
15 mm) restricts the fuel volume compared with a constant thickness (typically <1 mm)
steel shell. New joining techniques are emerging allowing a reduced flange, enabling
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the steel shell to be expanded further. It is estimated that fuel capacity increases up to
10% or more can be realized by reducing or eliminating the weld flange.

 

Vehicles equipped with steel tanks have demonstrated the ability to meet all current and
future government regulations and requirements for fuel system integrity after front, rear
and side impacts.

Stainless steel tanks have been tested, and although effective in flexible fuels, they are
difficult to form without severe breakage occurring during stamping. Also, stainless steel
is expensive, with an estimated cost ratio to terne steel exceeding 5:1. The electro
coated zinc-nickel product is painted on both sides with an aluminum-rich epoxy.
Industry accelerated tests on the corrosion of painted zinc-nickel confirm that it will meet
a ten-year life in current fuels and flex-fuels and resist external corrosion.

Testing the characteristics of painted galvanneal (zinc-iron alloy coated steel) have
found it effective for resisting corrosion on both the inside and outside surfaces of the
tank.

Hot-dipped tin has also been found to be effective for resisting all fuels, but it does
require a paint coating for exterior protection from road-induced corrosion. This product
welds faster than painted terne and has a better potential for good solderability than
painted galvanneal and zinc-nickel coated steel substrates, permitting the attachment of
fuel filler tubes and other lines.

  

Terne plate holds a materials cost advantage over HDPE: $0.66-0.79/kg vs. $0.86-
1.08/kg. The cost of the material is not the only driver; consideration includes the net
cost of the fabricated tank and its reliability within the total fuel system of the vehicle,
including the tank, filler tube, level control, baffles, the housing reservoir for the sending
unit, and other assorted tubing, fittings, and seals from the tank to the engine. All of
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these components must function properly with the various fuel types and for the life of
the car. Unforeseen corrosion can easily contaminate the fuel delivery system and
cause costly repairs.

Manufacturing costs for either tank material seem conflicting, depending on the source.
Nevertheless, due to the invested capital of OEMs on stamping, welding, and assembly
equipment for metal tanks, their cost structure indicates a lower cost per piece on steel
tanks versus plastic ones.

Corrosion is a well-known concern on both the inside and outside surfaces of tanks. The
outside surfaces and supporting structure are exposed to road chemicals, salt, mud,
and gravel. The corrosion issue is critical with zinc-coated products that replace terne
plate because of their sacrificial nature, which puts an even higher demand on the
quality of the barrier film for both inside and outside surfaces. In contrast, the HDPE gas
tanks are inert to the corrosive environments inside and outside the tank.

 


£ Terne-Coated Steel
 Advantages: Low cost at high volumes, recyclable, materials cost, and
permeability
 Disadvantages: Shape flexibility, ineffective corrosion protection from
methanol fuel, lead-containing coating
£ lectrocoated Zn-Ni and Galvanneal
 Advantages: Low cost at high volumes, recyclable, effective inside and
outside corrosion protection, material cost, and permeability
 Disadvantages: Weldability and shape flexibility
£ Dot-Dipped Tin
 Advantages: Low cost at high volumes, recyclable, effective inside and
outside corrosion protection, material cost, permeability, and weldability
 Disadvantage: Shape flexibility
£ Stainless Steel
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 Advantages: Corrosion, recycable, and permeability

 Disadvantages: Cost at all volumes, formability, and joinability



    
  

£ Best material for PZEV applications thanks to inherent impermeability to

hydrocarbons.
£ Cost competitive with current co-extruded blow-molded plastic fuel tanks.
£ Corrosion resistant to road environments (15-year life minimum or 150,000
miles).
£ Compatible with all fuels.
£ Good design flexibility (complex shape/saddle tank capability).
£ Readily manufacturable by well-proven, conventional, low cost, widely available
processes.
£ Over 100 years of proven performance and safety.
£ 100% recyclable. Nearly 15 millions tons of steel are recycled annually from
automobiles.

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Steel fuel tanks are not eternal facilities. They must bear the continuous corrosion
caused by external atmosphere conditions and stored product which decrease
thickness and damage wholeness of the construction.

Settlement of foundation geometrical deviation has negative impact which must be

registered by qualified persons. The correct analysis and competent repairing of the
tank decrease the risk of accidents and environmental pollution and lengthen the period
of their exploitation.


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By sale of steel fuel tank 24000 Nos per annum @ Rs 600 per Tank, Rs 1,44,00,000




J J 



FIXED CAPITAL


#
 :

Rental charges 3000 sq ft 45,000

 
$ 

S.No DSCRIPTION QTY RAT AMOUNT

01. Bench grinder 200 mm wheel size

with 0.75 H.P. motor 1 18,000 18,000
02. Cost of moulds/other fixtures 5 50,000 250,000
03. Cutting and shearing machine 1 75,000 75,000
04. Drilling machine, pillar type
with tapping attachment 1 35,000 35,000
05. Hydraulic Press 200 T 1 200,000 200,000
06. Hydraulic Press 300 T 1 300,000 300,000
07. MIG welding 600 Amps 1 175,000 175,000
08. Power press 1 125,000 125,000
09. Pre operative expenses 20,000
10. Surface grinder-cap 500x250mm
with 3HP motor 1 300,000 300,000
11. TIG 1 100,000 100,000
12. Tool & Die Cost 1 200,000 200,000
13. Welding set with accessories 3 25,000 75,000
14. Office Furniture & Equipments 35,000

%&'()&(((

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S.No DSCRIPTION QTY RAT AMOUNT

01. Steel Sheet 2000 400 800,000

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S.No DSIGNATION NO SALARY TOTAL

01. Helpers 2 1,500 3,000

02. Skilled workers 3 5,000 15,000
03. Supervisor 1 7,000 7,000
04. Tool & die maker 1 8,000 8,000

,,&(((

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S.No DESCRIPTION QTY RATE AMOUNT

01. Power 2,500

02. Water, Tax, Insurance 1 2,400 2,400

-&'((

  

S.No DESCRIPTION AMOUNT

01. Consumable stores 12,000
02. Misc. expenditure 4,000
03. Postage & Couriers 1,500
04. Repairs and stores 3,000
05. Transport charges 6,000

./&0((

WORKING CAPITAL PER MONTH :800,000 + 33,000 + 4,900 + 26,500 = Rs.864,400

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= 864,400 * 3 = .&0',&.((



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FIXED CAPITAL 1,953,000
WORKING CAPITAL FOR 3 MONTHS 2,593,200

-&0-/&.((

 
  

S.No DESCRIPTION AMOUNT

01. Depreciation on machinery & equipments @ 10% 190,800

02. Depreciation On Office Furniture @ 20 % 3,500
03. Depreciation On Tools @ 25 % 50,000
04. Recurring expenditure 10,372,800
05. Interest on capital investment @ 18% 818,316

Total 11,435,416

 

By sale of steel fuel tank 24000 Nos per annum @ Rs 600 per Tank, Rs %&--&((&(((

  

Sales Per annum 12,018,000

Cost of Production per annum 11,435,416

  0).&0)-

   :

2    = Profit/annum * 100

---------------------
Sales/annum
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582,584 * 100
= ---------------------
12,018,000

= -)2

2      = Profit/annum * 100

--------------------------
Total Capital investment

582,584 * 100
= ---------------------
4,546,200

= %.3)%2

  

Fixed cost per annum :

Depreciation 244300
Interest on investment 818,316
40% of salary and wages 158,400
40% of other expenses & Utilities 150,720

%,4%4,/
Profit per annum = Rs. 826884

   = Fixed Cost/annum * 100

------------------------------------------
Fixed cost/annum + profit/annum

1371736 * 100
= ---------------------
1371736 + 826,884

= 0%3.42

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£ This is a rough estimated project, you have to select several other parameters
which is not included in the project.

£ The actual cost of various inputs can taken at the time of final project prepration.

£ Appropriate selection machines and dies are key for this project.

£ Is it is new project or expansion of existing unit, then the project cost varies
accordingly

£ Is the buyer(Mahindra) is willing to provide any assistance you have to consider

in this project like Tooling, Technical advice, Development and financial
assistance

£ There are several schemes operated by Government of India and Government of

Andhra Pradesh. you can visit websites as given below

£ http://www.chennaimsmedi.com/MSME/Scheme.jsp
http://www.dcmsme.gov.in/schemes/schemes_scm.htm
http://www.aponline.gov.in

£ The project is envisaged to manufacture simple pressed components

required for small and medium scale industries. This industry is suitable
for a ITI/Diploma holder and may be started in semi urban and urban areas.

£ The market for press components is very wide as these are used in
different types of engineering industries. It is advisable for the entrepreneur to
have source linkage with medium and large industries to help in marketing.

The following inputs are very essential before finalizing the project.

£ The total estimated project and investment have to be decided by the investor.
£ Type of machinery, raw material local or imported
£ If you are going for bank loan than details of Margin Money.
£ Do want to adopt any government assistance scheme which gives subsidy upto
5% to 25% depending on the scheme
£ Promoters training on the technical aspect of manufacture of fuel tank.
£ Is it advisable to invest lakhs of rupees believing Mahindra, what if Mahindra go
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£ Do you have any alternative or standby provision to face such challenges.

£ What is the assurance commitment given by Mahindra
£ It will be appreciated if Mahindra accepts your company as sole or at least 50%
supply of fuel tank from you company.
****

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