Wednesday, 7 December 2011

Start a Automobile body (Bus Body) building

      
(243) Start a Automobile body (Bus Body) building
       



Automobile body (Bus Body) building is an important activity. The chasis are supplied by Automobile manufacturers, and body is built by automobile body builders as per the requirements of the customer and specifications of the different State Transport Undertakings.
Market Potential
Bus is used as the most common public transport vehicle in our country. Different State Transport Undertakings are plying their buses for commuting public from one place to another and from one State to another. Apart from these Undertakings, Private Bus Operators, travel agencies etc. are also operating buses on permit basis. With rapid changes in the society, now a days it has become necessary to provide good and efficient service to the public. Also with the rapid industrialisation, public is moving very frequently from one place to another using public transport. Since more and more development in the coming years, it is expected that demand of public transport, private transport and luxury transport in the form of buses will increase in the coming years.
Basis and Presumptions
1.  Working will be for 3 shifts per day of 08 hrs each at minimum 75% working efficiency to achieve the envisaged production capacity.

2. A time period of three years has been considered for achieving the full capacity utilisation after start of commercial production.

3. Labour wages are considered as per the prevailing market rates.

4. Interest on fixed and working capital investment has been calculated at an average rate of 12% per annum.

5. The cost of land and building has been calculated as per the prevailing market prices, and these rates are likely to vary from place to place.
Implementation Schedule
The following activities are to be completed and the approximate time for each activity is as mentioned against each of them:
Sl. No.ActivityPeriod (in Weeks)
1.Selection of product4
2.Selection of Industrial site2
3.Provisional registration2
4.Preparation of project Report2
5.Application for finance and getting Loan sanctioned24
6.Recruitment of man power4
7.Purchase and Installation of machinery14
8.Trial Run1
It is necessary to obtain permanent Registration Certificate from the concerned District Industries Centre after commencement of commercial production.
Technical Aspects

Process of Manufacture
Metal sheets are cleaned and derusted for grease/oil if any. Then sheets are cut to size for forming different parts and these parts are formed on press brake. Now different parts and their subassemblies are fabricated as per their design and size. These parts and subassemblies are fabricated– together to make them a complete bus body. The complete body is painted as per the requirements of the customer. Shower test is carried out for leakage etc.
Production Capacity (per annum)
Quantity:324 Nos.
Value:Rs 13,51,00,000
Motive Power:150 HP (Approx.)
Pollution Control
The manufacturing/fabrication of bus body does not pose any problem for pollution. However, proper ventilation is to be done in shop floor area and painting area. Provision for pollution control equipments has been made in this Project Profile.
Energy Conservation
Suitable energy efficient motors are to be used on proposed machines with provision of recommended shunt capacitors.
Financial Aspects

A. Fixed Capital
(i) Civil costAmt. (In Rs.)
(a) Land 4000 Sq.Mtrs. @ Rs. 3500/ Sq.Mtr.1,40,00,000
(b) Office - 100 Sq. Mtr @ Rs.7500/Sq.mtr.7,50,000
(c) Store –150 Sq. Mtr @Rs.6000/Sq.mtr.9,00,000
(d) Working shed - 2000 Sq. Mtr. @ Rs. 6000/Sq.mtr. bore well and raw water storage, DG set room, security room, laboratory, maintenance room, workers room1,20,00,000
(e) Paint Shop (Preferably Dust Proof) - 100 Sq. Mtr. @ Rs. 7000 per Sq. mtr.7,00,000
(f) Boundary wall, gates, roads inside the premises8,00,000
Cost of land and building = 1,40,00,000 + 1,51,50,0002,91,50,000
(ii) Machinery and Equipments
Sl. No.DescriptionInd./ Imp.Qty.
Total
(In Rs.)
1.Motorised Guillotine Sheet Shearing Machine Capacity 2500×4 mm with 10 HP electric motor and starter etc. also fitted with front and back side gauges, sheet holding devices etcInd.1
9,00,000
2.Power operated Press Brake bending capacity 2440 × 4 mm, 100 Ton with 15 HP Main Motor and 2 HP raw adjustment MotorInd1
11,00,000
3.Suspension type M.I.G. Welding system 250 Amp. along with power source, wire feeder, Torch and flow Calibrated Co2 regulator and Co2 heated with core assembly OPC.Ind.1
2,00,000
4.Gas Welding set with all the Accessories etc.Ind.2
50,000
5.Arc welding machine 300 Amps. 15 kVA Air Cooled complete with all the accessoriesInd.5
2,00,000
6.Air Compressor with painting equipment and accessories for paintingInd.1
2,00,000
7.Different types of power/Air operated tools like Nut runner, drilling gun etc.Ind.L.S.
4,00,000
8.Drilling Machine 1½" capacityInd.2
1,00,000
9.Metal cutting bandsaw for cutting Aluminium sections complete with 2 HP Electric motor and accessoriesInd.1
1,00,000
10.Hoist chain pulley block crane and material handling trolley etc.Ind.L.S.
5,00,000
Testing Equipment and others
1.Shower tester self fabricated (Nozzles to be arranged at different orientations to cover the entire portion of the vehicle)Ind.1
3,00,000
2.Portable digital paint thickness checking equipment (Coating thickness checking)Ind.-
25,000
3.Small measuring tools:Ind.-
25,000
4.Pollution Control Equipment -
2,00,000
5.Bore well and raw water system, DG set with accessories -
15,00,000
6.Excise and sales tax electrification and installation charges @ 40% cost of machinery and equipment -
27,20,000
7.Cost of Jigs, Fixtures etc. L.S.
5,00,000
8.Cost of office equipment L.S.
5,00,000
Total plant and m/c cost
95,20,000
(iii) Preoperative expenses
5,00,000
Total Fixed Capital (i+ii+iii) Rs. 2,91,50,000 + 95,20,000 + 5,00,000
3,91,70,000
B. Working Capital (per month)
(i) Personnel
Description
No.
Salary
Total
(In Rs.)
i) Administrative and Supervisory
General Manager
1
30,000
30,000
Commercial Manager, Sales and Marketing staff, finance and accounts staff and purchase staff and stores staff
  
1,75,000
Administrative officer and staff
  
30,000
Production manager, laboratory chemists maintenance engineers and staff, shift incharges
  
2,00,000
Chowkidar/Watchman
7
 
21,000
ii) Technical
Skilled Workers
40
5000
2.00,000
Semi-skilled workers
45
4000
1,80,000
Un-skilled Workers
40
3000
1,20,000
Total
9,56,000
Add perquisites @ 22%
2,10,000
Total
11,68,000
(ii) Raw Materials
Sl. No.
Particulars
Ind./ Imp.
Qty.
Rate (Rs.)Amount (In Rs.)
1.
M.S. Channel 75 × 40 to × 50 mm
Ind.
9 MT
40,0003,60,000
2.
M.S. Equal Angle 25× 25×3 to 50×50×6 mm
Ind.
15 MT
40,0006,00,000
3.
M.S. Flat 50 to 70 mm wide
Ind.
3.750 MT
40,0001,50,000
4.
Aluminium chequered Plate 8 mm to ½ inch
Ind.
3 MT
2,50,0007,50,000
5.
CR/BP Sheet 10 to 26 SWG
Ind.
75 MT
52,00039,00,000
6.
M.S. Pipe 3/4" to 1" Dia
Ind.
1.500 MT
40,00060,000
7.
Aluminium Rolled Sections
Ind.
1.500 MT
2,50,0003,75,000
8.
Bought out items and hardware items
Ind.
L.S.
 2,00,000
9.
Other bought out items such as Raxine Ply,. PVC. Sheet. Foam OTC, Electrical fittings and fixtures, emblem etc.
Ind.
L..
 5,00,000
Total68,95,000

(iii) Utilities
Amount
(In Rs.)
Power150x0,8x0.73x24x25x42,10,000
WaterL.S.10,000
Total2,20,000

(iv) Other Contingent Expenses
Amt (In Rs.)
Lubricants
20,000
Postage and Stationery and communication expenses
30,000
Consumable stores (Redoxide, Paint, Putty, Kerosene, Emery paper, Welding electrode, tools etc.)
5,00,000
Transport Charges
25,000
Advertisement and Publicity
25,000
Insurance Charges
21,000
Sales Expenses
1,50,000
Misc. Expenses
50,000
Total
8,21,000

(v) Total Recurring Expenditure (per month)(In Rs.)
Staff and labour11,68,000
Raw material68,95,000
Utilities2,20,000
Other Contingent Expenses8,21,000
Total91,04,000

(vi) Working capital for 3 monthsRs. 2,71,35,000
C. Total Capital Investment
(i) Fixed CapitalRs. 3,91,70,000
(ii) Working Capital for 3 monthsRs. 2,73,12,000
TotalRs. 6,64,82,000
Machinery Utilisation
It is assumed that machinery will be utilised at 75% efficiency.
Financial Analysis
(1) Cost of Production (per year)
Amt (In Rs.)
Total recurring cost
10,92,48,000
Depreciation on building @ 5%
7,58,000
Depreciation on Dies, Jigs and Fixtures etc. @ 20%
1,00,000
Depreciation on machinery and equipments @ 10%
8,52,000
Depreciation on office equipment 20%
1,00,000
Interest on total capital investment @ 12%
79,78,000
Total11,90,36,000
(2) Turnover (per year)
Sl. No.Item
Qty.
Rate
(Rs.)
Total
(In Rs.)
i)Full size Bus body
324 Nos.
4,11,440 per piece
13,33,00,000
ii)Sale of scrap
90 MT
20000/MT
18,00,000
Total
13,51,00,000

(3) Net Profit (per year) (before tax)

=
Rs. 13,51,00,000 – 11,90,37,000
 =Rs. 1,60,63,000
 
(4) Profit Ratio
=
Net Profit (per year) ×100
--------------------
 
Total Sale
 
=
1,60,63,000 × 100
----------------------
 
13,51,00,000
 

=
11.89%
 
(5) Rate of Return
=
Net Profit (per year) × 100
--------------------------------
 
Total investment
 
=
1,60,63,000 × 100
-----------------------
 
6,64,82,000
   
=
24.16%
(6) Break-even Point
Fixed Cost(Rs.)
Depreciation on machinery and equipment, tools, fixtures, office equipment and building18,10,000
Interest on total investment79,57,000
40% of Salary and wages56,06,000
40% of utilities and other contingent expenses39,40,000
Total1,93,13,000

B.E.P=Fixed cost × 100
-----------------------
  Fixed cost + Profit
   
 =1,93,34,000×100
-------------------------------
  1,93,34,000 + 1,60,63,000
   
 =54.62%
Additional Information 

The unit should install degreasing and phospating plant for obtaining long life and good quality paint of bus body to improve the quality of product .

Addresses of Machinery and Equipment Suppliers 

1. M/s. Parekh Machine Tools
5, Khetra Das Lane, Behind Broad
Way Hotel, Kolkata.

2. M/s. Economic Machine Tools
21, Dr. V.B. Gandhi Marg,
(Forbes Street), Fort,
Mumbai-1

3. M/s. Master Engg. Works (Regd.)
G.T. Road (Dholewal), Opp. Indian
Oil Petrol Pump, Ludhiana-3.

4. M/s. International Machine Tools Corporation

5, Nyayamurti G.N. Vaidhya Marg,
Bank Street, Post Box No-2,
Behind State Bank of India,
Fort, Mumbai-1.

Raw Material Suppliers 

1. M/s. Steel Authority of India.
2. State Laghu Udyog Nigam.
3. Local Market.

1 comment:

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