Tuesday, 20 December 2011

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
1.Preparation of Project Report: 
 a) Calling quotations1 month
 b) Preparation2 months
2.Provisional Registration as SSI1 week
3.Financial Arrangement2 months
4.Purchase and procurement of machines and equipments2 months
5.Installation of Machinery1 month
6.Electrification1 month
7.Recruitment of Staff1 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 Power38 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 Mtr3000000
Store and office100 Sq Mtr @ Rs 7000/ Sq Mtr700000
Working shed350 Sq.mtr. 
a) Machine shop 150 sq mtrs. @7000 Sq. mtr1050000
b) Packing Section, etc. 75 sq mtr @4000300000
c) Buffing and Polishing section 75 sq mtr @ 4000300000
(ii) Machinery and Equipment
Sl. No.DescriptionNo.HPTotal
(In Rs.)
1.Guillotine shearing machine 1250mm × 8 S.W.G. capacity (aluminium) complete with standard accessories, electric motor, switch, starter etc.15300000
2.Heavy duty circle cutting machine, 600 mm dia capacity × 8 S.W.G. (aluminium) complete with standard accessories, electric motor, switch, starter etc.1245000
3.Deep Drawing double action toggle press No.5 complete with standard accessories, electric motor, switch, starter etc.115700000
4.Hydraulic Press 50 tonne cap. complete with standard accessories, electric motor, switch, starter etc.13250000
5.Power press 60 tonne cap. complete with electric motor, switch, starter etc.15250000
6.Lathe Machine 1820 mm bed length complete with standard accessories, electric motor, switch, starter etc.12150000
7.Drilling machine bench type 12 mm cap. complete with standard accessories, electric motor, switch, starter etc.1112500
8.Double ended bench grinder 200 mm wheel dia motorised2218000
9.Double ended Buffing and polishing Machine, motorised2430000
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
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 Expenses45000
Total Fixed Capital (i + ii + iii)8434700

B. Working Capital (per month)

(i) Personnel
Sl.No.DesignationNo.Salary (Rs.)Amount
(In Rs.)
(2)Accountant—cum-typist Technical170007000
(4)Skilled Workers10450045000
(5)Semi-Skilled Workers8500040000
(6)Un-skilled Workers6450027000
(8)Part Timer Sweeper118001800
 Add Perquisites @ 22% of salary33616
(ii) Raw Material (per month)
Sl. No.ParticularsQty. Kg.Rate/ Kg.(Rs.)Total (Rs.)
1.Aluminium alloy sheet/circles of 8, 10, and 14 S.W.G.108001501620000
2.Bought out components i.e. pressure regulator, bakelite handles and lugs, gaskets, fusible flugs, screws and rivets etc. in SETS1080060648000
3.Packing Boxes, Carton tape, Printed Literature550025137500

(iii) Utilities(Rs.)

(iv) Other Contingent Expenses (per month)(Rs.)
i. Telephone2000
ii. Postage and Stationery2000
iii. Transport Charges20000
i v. Repair and Maintenance10000
vi. Consumables like carbide, gas welding rods, oxygen gas etc.25000
vii. Advertisement and Publicity & marketing50000
viii. Insurance8000
ix. Miscellaneous/sales Expenses10000

(v) Total Recurring Expenses(Rs.)
1. Raw Material2405500
2. Personnel186416
3. Utilities30000
4. Other contingent expenses127000
C. Total Capital Investment
(1) Fixed Capital8434700
(2) Working Capital (for 2 months)5497832
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 cost32986992
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
(2) Turn-over (per year)
ItemQty. Nos.Rate
(In Rs.)
1.Pressure Cookers5400070037800000
2.Sale of aluminium scrap in Kg's208001102288000

(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
(5) Rate of Return=Net profit × 100
  Total Investment
  4292134 × 100
(6) Break-even Point
Fixed Cost (per year)(In Rs.)
1. Total Depreciation on Machinery, tools & office equipments etc869470
2. Depreciation on Building @ 5 %267500
3. Total interest1671904
4. Insurance96000
5. 40% of salary and wages894796.8
6. 40% of other contingent expenses ( excluding insurance)571200

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

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

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

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

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

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

Raw Material Suppliers 

Raw materials are easily available in the local market

1 comment:

  1. High quality hardware tools like high tensile fasteners, bolts, nuts, washers, threaded bars and many other miscellaneous tools which are used in power distribution, telephone systems, railway electrification, traffic poles etc. are manufactured and supplied by pankaj international.

    Pankaj International
    B-40/III, Phase V, Focal Point, LUDHIANA-141010 (INDIA)
    Phone : +91-161-2677676 Fax : +91-161-2676976
    Cell: +91-094634-00401

    Fasteners manufacturers