MSME-DI KANPUR

PROJECT PROFILE

ON

Automobile Radiators - Cores

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PART- I

NAME OF THE PRODUCT : Automobile Radiators – Cores

PRODUCT CODE : .

QUALITY & STANDARD : IS: 3531:1965.

PRODUCTION CAPACITY : Item Quantity

Truck Radiators 6000 Nos.
Car Radiators 6000 Nos.

MONTH & YEAR OF : January, 2014.

PREPARATION

PREPARED BY : Mechanical Division

MSME - Development Institute,
Ministry of Micro, Small & Medium Enterprises,
Government of India
107, Industrial Estate, Kalpi Road,
Kanpur-208012.
Tele. 2295070, 2295071 & 2295073 (EPBAX)
Tele. No. 2295072 (SENET & TRC)
Tele/Fax No.: 0512- 2240143
email: dcdi-kanpur@dcmsme.gov.in
Website: msmedikanpur.gov.in
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PROJECT PROFILE

ON

Automobile Radiators - Cores

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PART-II

A) INTRODUCTION

The radiators are used in water cooled petrol and diesel engines to keep water
circulation in the Cylinder heads of engines at relatively constant temperature and thus
prevent overheating of the engine. The designs of radiators vary according to the model
of vehicles, as there are different manufacturers of automobiles. Radiators are also
used in stationery types of engines. The core of the radiator is made of brass and
copper sheets and tubes. The bottom and top shells are made cut of brass sheets. The
item has been reserved for manufacture in the small scale sector.

B) MARKET POTENTIAL

After a short period of slums in the automobiles industry the prospects are again
brightening up. The new units set up in this line will be able to supply to both original
equipment manufacturers and in the spare parts market. For local consumption the
small scale units may cater to the local spare parts markets.
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C) BASIS & PRESUMPTIONS

1. The project Profile has been prepared on the basis of single shift of 8 hours each
day, 25 days in a month and at 75% efficiency.

2. It is presumed that in the first year the capacity utilization will be 60% followed by
70% in the next year and 80% in the subsequent years.

3. The rates of salaries and wages for skilled workers and others are the minimum
rates in the State/Neighbouring States.

4. Interest rate for fixed and working capital has been taken on an average rate of
14% whether financed by bankers or by Financial Corporations.

5. Margin money required is minimum 30% of the project investment.

6. The rental value of the workshed and other built up /covered area has been
taken at the rate of more than Rs. 50.00 per sq. mtr.

7. The rates quoted in respect of machines, equipment and raw materials are those,
prevailing at the time of preparation of this Project Profile and are likely to vary
from supplier to supplier and place to place. When a tailor made project profile is
prepared necessary changes are to be made.

D) IMPLEMENTATION SCHEDULE:
Sl. No. Activity Period
i. Preparation of project report after calling quotations 1 month
ii. Registration and other formalities 1 month
iii. Sanction of loan by financial institutions 3 months
iv. Plant & Machinery
a) Placement of orders 1 month
b) Procurement 2 months
c) Power connection/Electrification 2 months
d) Installation/Erection of machinery/Test Equipment 2 months
v. Procurement of raw material 2 months
vi. Recruitment of Technical Staff etc. 2 months
vii. Trial Production In 11th month
viii. Commercial Production In 12th month
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E) TECHNICAL ASPECTS:

(i) Production Details & Process of Manufacture:

The brass tubes are required to be tinned. For this prior to forming the sheets are
tinned in automatic strip Trimmer. The Pins are punched and embossed out of
copper strips in Press Machine. Then the tubes and pins are assembled in
assembly jigs. Then the assembled cores are fluxed in fluxing and Draining
equipment. The cores are then baked and squared in jig to take care of any
deformation. The Header plates are pressed in machine, and the slide bends are
made by Hand rolling machines. Then the header plates are hot dipped in solder
bath and assembled with core. Prior to assembly the cores should be tested for
pressure testing. For the thin sheets, required for the industry copper zinc, tin
and lead ingots will have to be imported and sheets etc. may be got rolled, in
large manufacturing units.

(ii) Quality Control and Standards

IS Specifications for Radiator core copper Foil and brass strips is IS:3531 – 1965.
The purchase and procurement of raw material strictly according to this
specification is essential for the maintenance of standard quality. They should be
vigilant quality checking in tinning and soldering operations which will also be
helpful in keeping down the cost of operations as the solders and tin are very
costly material.

(iii) Production Capacity:

Item Quantity
Truck Radiators 6000 Nos.
Car Radiators 6000 Nos.

(iv) Motive Power:

25 HP

(v) Pollution Control:

No pollution is involved in the manufacturing process of Automobile Radiators.
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F) FINANCIAL ASPECTS:

A) Fixed Capital:

(i) Land & Building:

Covered Area 300 Sq. Mtrs. @ Rs.50/- per sq. mtr. P.M. (Rented) 15,000/-

(ii) Machinery & Equipment:

Sl. Item Qty. Amount

No (Nos.) (In Rs.)
1. Automatic tube drawing machine 1 4,00,000/-
2. Automatic strip tinner 1 1,50,000/-
3. Automatic fin roller machine 1 1,00,000/-
4. Heavy duty core assembly jigs 4 80,000/-
5. Special soldering oven 1 70,000/-
6. Header plate dipping equipment 1 40,000/-
7. Fluxing & draining equipment 1 30,000/-
8. Guillotine shearing machine 48” motorized 1 1,25,0000/-
9. ¾” capacity drill machine 1 15,000/-
10. Boll Press 2 30,000/-
11. Double ended pedestal grinder 1 8,000/-
12. Compressor 1 15,000/-
Total: 10,63,000/-
Other Fixed assets

13. Squaring Jig, Die tools, fixture gauge etc. 1,00,000/-

14. Installation & Electrification 10% 1,06,300/-
15. Office equipment & furniture 50,000/-
16. Pre-operative expenses 30,000/-
Total: 2,86,300/-
Total Fixed Capital: 13,49,300/-
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B) Working Capital (Per Month):

(i) Personnel:

Sl. No. Designation No. Salary Total (Rs.)

1. Engineer-cum-Manager 1 10000 10,000/-
2. Supervisor 1 8000 8,000/-
3. Clerk-cum-Accountant 1 5000 5,000/-
4. Skilled Workers 3 4500 13,500/-
5. Semi-Skilled Workers 6 3500 21,000/-
6. Watchman-cum-Peon 1 3000 3,000/-
Total: 60,500/-

(ii) Raw Materials (P.M.):

Sl. Particulars Qty. Rate/MT Amount

No. (In Rs.)
1. Copper ingots 5200 Kg 300/Kg 15,60,000/-
2. Zinc ingots 1420 Kg 105/Kg 1,49,100/-
3. Tin ingots 400 Kg 1105/Kg 4,42,000/-
4. Lead ingots 590 Kg 110/Kg 64,900/-
5. Other chemical etc. 50,000/-
Total: 22,66,000/-

(iii) Utilities:

1. Power 25 HP 22,500/-
2. Water 1,500/-
Total: 24,000/-

(iv) Other Contingent Expenses (P.M.):

1 Rent 15,000/-
2 Stationery & Postage 5,000/-
3 Repair & maintenance 15,000/-
4 Consumable Stores 10,000/-
5 Transportation 10,000/-
6 Telephone / Fax charges 5,000/-
Total: 60,000/-
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(v) Working Capital / Total Recurring Expenditure (P.M.):

1. Personnel 60,500/-
2. Raw Materials 22,66,000/-
3. Utilities 24,000/-
4. Other Contingent Expenses 60,000/-
Total: 24,10,500/-

(vi) Total working capital for 3 months 24,10,500 X 3 = Rs.72,31,500/-

C) TOTAL CAPITAL INVESTMENT:

I. Fixed Capital 13,49,300/-

II. Working Capital for 3 months 72,31,500/-

Total: 85,80,800/-

G) FINANCIAL ANALYSIS:
i) Cost of Production (Per annum)

Sl. No. Particulars Value(Rs.)

1. Total Recurring Expenditure /Cost 2,89,26,000/-
2. Depreciation on machinery and equipment @ 10% 1,06,300/-
3. Depreciation on Dies/Tools/Measuring Instruments etc. 25,000/-
@ 20%
4. Depreciation on office equipments @ 20% 10,000/-
5. Interest on Total Capital Investment @ 14% 12,01,340/-
Total: - 3,02,68,640/-

ii) Turnover (Per Annum)

Sl. Item Quantity Rate (Rs.) Value (Rs.)

No.
1. By sale of Truck Radiators 6000 Nos. 3000/-Pc 1,80,00,000/-
2. By sale of Car Radiators 6000 Nos. 2500/Pc 1,50,00,000/-
3. Scrap sale 5,00,000/-
Total: 3,35,00,000/-

iii) NET PROFIT (Per annum) Before Taxation:

Turn Over (-) Cost of Production

= 32,31,360/-
3,35,00,000/- (-) 3,02,68,640/-
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iv) PROFIT RATIO ON SALES (Per Annum):

Profit/annum X 100 32,31,360/- X 100
= 9.6%
Turnover/Annum 3,35,00,000/-

v) RATE OF RETURN (Per Annum):

Net Profit/annum X 100 32,31,360/- X 100

= 37.65%
Total Capital Investment 85,81,000/-

BREAK EVEN POINT

Fixed Cost:
1. Total Depreciation Rs. 1,41,300/-
2. Rent Rs. 1,80,000/-
3. Interest 14% Rs. 12,01,340/-
4. 40% of Salary & Wages Rs. 2,90,400/-
5. 40% of other contingent expenses (excluding rent & Rs. 2,16,000/-
insurance)
6. 40% of utilities Rs. 1,15,200/-
Total:- Rs. 21,44,240/-

B.E.P.

Fixed Cost X 100 21,44,240/- X 100

= 39.88%
Fixed Cost + Profit 21,44,240/- + 32,31,360/-

Names & Address of Machinery & Equipment Suppliers:

There is no regular manufacturer in the country, some of the manufacturers got their
plants copies by experience machine manufacturers on job order basis. One such manufacturer
is –

1. M/s Meeghraj Machines, 2/9 Indl. Area, Garwar Road, Baroda.

For general purpose machines, following dealers are dealing –

1. M/s International Machine Tools Corpn., 5, Bank St. P.O. 799, Fort,
Mumbai -400001.

Address of Raw Material Suppliers:

1. M/s Kamani Metal & Alloy Ltd., Kamani Chambers, Nicoll Road, Bellard Estate, Mumbai.
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PSB*March 2012*