Start a Domestic Pressure Cookers Manufacturing Business

      

(252). Start a Domestic Pressure Cookers Manufacturing Business

The pressure cookers are extensively used in household for preparing food. The pressure cookers have preference over the conventional cooking utensils due to the advantage of retaining the nutritive value and flavour of the cooked food and less time required for cooking and thus effecting considerable savings in time and fuel. It is a closed cooking vessel for use with external heat source, capable of maintaining working steam pressure of 1.0 Kg.Sq. cm. The full liquid capacity of vessel i.e. total internal volume with lid in position, ranges from 2 to 10 litres capacity. But in market, the, Pressure Cookers of 3 and 5 litre capacity are mostly demanded by the customers. This project profile envisages the manufacturing of 5 ltrs. capacity cookers.Introduction

It is a well known fact that a pressure cooker cooks food at a pressure higher than that of ambient pressure, thus necessitating sufficient precaution required in designing, manufacturing and use of domestic pressure cooker to safeguard against accidents in the kitchen.

Market Potential

It has been observed, keeping in view the average family, that medium size/capacity pressure cookers have greater market. With the rapid advancement in the general living standards of the people, the demand of pressure cookers is increasing day by day. Accordingly, there is great scope for setting up of the new units for manufacture of pressure cookers to standard specifications.

Basis and Presumptions

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

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

3. The rates quoted in respect 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 @ 12% on an average, whether financed by bankers or by Financial Corporation.

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

6. Building is of own

7. The rates quoted in respect of machines, equipment and raw materials are those prevailing at the time of preparation of the 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.

Implementation Schedule

Sl.No.	Activity	Period
1.	Preparation of Project Report:
	a) Calling quotations	1 month
	b) Preparation	2 months
2.	Provisional Registration as SSI	1 week
3.	Financial Arrangement	2 months
4.	Purchase and procurement of machines and equipments	2 months
5.	Installation of Machinery	1 month
6.	Electrification	1 month
7.	Recruitment of Staff	1 month

       
Process of Manufacture

The pressure cooker consists of components like main body, lid, regulator, gasket, fusible plug, handles, lugs etc. The main body and lid of the pressure cooker are manufactured of aluminum alloy sheet/Circles of different thicknesses depending upon the size and specifications of the Cooker. The components i.e. pressure regulator, Bakelite Handles and Lugs, Rubber Gasket, Fusible Plugs, Screws, Rivets, Packing Boxes etc. are usually purchased from outside sources by the pressure cooker manufacturers. In the manufacturing of pressure cookers operations like circle cutting, deep drawing of body, drawing of lid, trimming of body and lid, notching of body, drilling of holes in body and lid, fixing of lugs, handles, vent pipe, buffing and polishing, testing, packing etc. are involved.

Quality Control and Standards 

The Indian Standard Specification No. IS 2347:1995 for domestic pressure cooker and IS 1766:1994 for Rubber Gaskets for cookers and other relevant specifications prepared by the BIS should be followed for quality control and various tests. The manufacturer should have arrangement to carry out the important tests in the factory premises.

Production Capacity (per annum)

Quantity(per annum)	Value (Rs.)
54000 No.	40088000

Motive Power

38 KW.

Pollution Control 
There will not be any pollution in the press shop and assembly shop. However, exhaust fans and dust collectors will be installed in the polishing and buffing section to control the air pollution.

Energy Conservation

All the machines are to be provided with separate electric motors to avoid idle running. Shunt capacitors will be installed to improve the power factor. Adequate day light provisions are to be made in the factory shed by providing transparent roof sheets.

Financial Aspects
A Fixed Capital

(i) Land and Building (per month)		(In Rs.)
Total Built up Area & covered area:	500 Sq. mtrs.@ Rs 6000 / Sq Mtr	3000000
Store and office	100 Sq Mtr @ Rs 7000/ Sq Mtr	700000
Working shed	350 Sq.mtr.
a) Machine shop	150 sq mtrs. @7000 Sq. mtr	1050000
b) Packing Section, etc.	75 sq mtr @4000	300000
c) Buffing and Polishing section	75 sq mtr @ 4000	300000
Total		5350000

(ii) Machinery and Equipment

Sl. No.	Description	No.	HP	Total (In Rs.)
1.	Guillotine shearing machine 1250mm × 8 S.W.G. capacity (aluminium) complete with standard accessories, electric motor, switch, starter etc.	1	5	300000
2.	Heavy duty circle cutting machine, 600 mm dia capacity × 8 S.W.G. (aluminium) complete with standard accessories, electric motor, switch, starter etc.	1	2	45000
3.	Deep Drawing double action toggle press No.5 complete with standard accessories, electric motor, switch, starter etc.	1	15	700000
4.	Hydraulic Press 50 tonne cap. complete with standard accessories, electric motor, switch, starter etc.	1	3	250000
5.	Power press 60 tonne cap. complete with electric motor, switch, starter etc.	1	5	250000
6.	Lathe Machine 1820 mm bed length complete with standard accessories, electric motor, switch, starter etc.	1	2	150000
7.	Drilling machine bench type 12 mm cap. complete with standard accessories, electric motor, switch, starter etc.	1	1	12500
8.	Double ended bench grinder 200 mm wheel dia motorised	2	2	18000
9.	Double ended Buffing and polishing Machine, motorised	2	4	30000
10.	Testing equipments like Hydraulic pressure test, Air leakage test, Testing of pressure regulating device etc.	L.S.	—	80000
11.	Workshop tools, Press Tools, Measuring tools, Work Benches etc.	L.S.	—	100000
Total				1935500
Taxes, Electrification and Installation Charges including cost of power connection and security deposit @ 40% of cost of machinery and equipments.				774200
Cost of Office Equipment, Furniture etc.				80000
Water System(Bore well & overhead tank)				50000
Generator set (for electricity backup)				200000
(iii) Pre-operative Expenses				45000
Total Fixed Capital (i + ii + iii)				8434700

B. Working Capital (per month)

(i) Personnel

Sl.No.	Designation	No.	Salary (Rs.)	Amount (In Rs.)
(1)	Engineer/Manager	1	15000	15000
(2)	Accountant—cum-typist Technical	1	7000	7000
(3)	Foreman/Supervisor	2	7000	14000
(4)	Skilled Workers	10	4500	45000
(5)	Semi-Skilled Workers	8	5000	40000
(6)	Un-skilled Workers	6	4500	27000
(7)	Peon/Chowkidar	1	3000	3000
(8)	Part Timer Sweeper	1	1800	1800
	Add Perquisites @ 22% of salary			33616
Total				186416

(ii) Raw Material (per month)

Sl. No.	Particulars	Qty. Kg.	Rate/ Kg.(Rs.)	Total (Rs.)
1.	Aluminium alloy sheet/circles of 8, 10, and 14 S.W.G.	10800	150	1620000
2.	Bought out components i.e. pressure regulator, bakelite handles and lugs, gaskets, fusible flugs, screws and rivets etc. in SETS	10800	60	648000
3.	Packing Boxes, Carton tape, Printed Literature	5500	25	137500
Total				2405500

(iii) Utilities	(Rs.)
Power	30000
Total	30000

(iv) Other Contingent Expenses (per month)	(Rs.)
i. Telephone	2000
ii. Postage and Stationery	2000
iii. Transport Charges	20000
i v. Repair and Maintenance	10000
vi. Consumables like carbide, gas welding rods, oxygen gas etc.	25000
vii. Advertisement and Publicity & marketing	50000
viii. Insurance	8000
ix. Miscellaneous/sales Expenses	10000
Total	127000

(v) Total Recurring Expenses	(Rs.)
1. Raw Material	2405500
2. Personnel	186416
3. Utilities	30000
4. Other contingent expenses	127000
Total	2748916

C. Total Capital Investment

(1) Fixed Capital	8434700
(2) Working Capital (for 2 months)	5497832
Total	13932532

Machinery Utilisation

All the machines will be fully utilized. There won't be any idle capacity.

Financial Analysis

(1) Cost of Production (per year)	(In Rs.)
1. Total recurring cost	32986992
2. Depreciation on machinery and equipments @ 10% (Including pre-operative expenses)	817470
3. Depreciation on tools, instruments and laboratory equipment @ 20%	36000
4. Depreciation on office equipment @ 20%	16000
5. Depreciation on Building @ 5 %	267500
6. Interest on total investment @ 12%	1671904
Total	35795866

(2) Turn-over (per year)

Sl. No.	Item	Qty. Nos.	Rate (Rs.)	Total (In Rs.)
1.	Pressure Cookers	54000	700	37800000
2.	Sale of aluminium scrap in Kg's	20800	110	2288000
Total				40088000

(3) Net Profit (per year) (Before Income Tax)

Turnover - Production Cost

Rs. 40088000 - 35528366

= 4292134

(4) Net Profit Ratio	=	Net profit × 100 --------------------
		Turnover per year
	=	4292134× 100 -------------------
		40088000
	=	10.71
(5) Rate of Return	=	Net profit × 100 ---------------------------
		Total Investment
		4292134 × 100 ---------------
		35795866
	=	11.99

(6) Break-even Point

Fixed Cost (per year)	(In Rs.)
1. Total Depreciation on Machinery, tools & office equipments etc	869470
2. Depreciation on Building @ 5 %	267500
3. Total interest	1671904
4. Insurance	96000
5. 40% of salary and wages	894796.8
6. 40% of other contingent expenses ( excluding insurance)	571200
Total	4370871

B.E.P	=	Fixed Cost × 100 ---------------------
		Fixed Cost + Profit
	=	4370871 × 100 -----------------------
		4370871 + 4292134
	=	50.45

Addresses of Machinery and Equipment Suppliers 
1. M/s. Sant Machine Tools Corporation
2nd Street, Kalsi Nagar,
G.T. Road, Ludhiana.

2. M/s. Basant Mechanical Works (Regd.)
720-722, Industrial Area-B,
Ludhiana.

3. M/s. Birdi Mechanical Works
G.T. Road, Miller Ganj,
Ludhiana.

4. M/s. Katbro Machine Tools
G.T. Road, Miller Ganj,
Ludhiana.

5. M/s. Surinder Machinery Works (Regd.)
Nirankari St. No. 2, G.T. Road,
Miller Ganj,
Ludhiana.

6. M/s. Sargodha Machinery Corporation
Near Manju Cinema, G.T. Road,
Ludhiana.

7. M/s. Pal Mechanical Works
Street No. 2, Partap Nagar,
Ludhiana.

Raw Material Suppliers 

Raw materials are easily available in the local market