Start a Machine Screw Manufacturing Business

  

(343). Start a Machine Screw Manufacturing Business

Machines screws as the name suggests is a type of industrial fastener employed for holding or fastening different parts. Such fasteners are of different varieties depending upon its use. It may be in British Standard threading, metric standard threading or wood screw threading. The material employed for making screws may be steel(ordinary/high tensile), Brass, Stainless steel or any other metal depending on the use. These screws are designated according to the type of threading and the shape of its head. Thus they may be hexagonal head, round head, chamfered type or slotted head. The type of head is again dependent upon the nature of its use. There is great demand for machine screws abroad especially for the brass variety. Brass screws are mostly required for the brass hardware used in furniture, doors, windows etc. Machine screws are required by all types of industries both light and heavy, automobile industry, machine tools, electrical and electronics industries, etc. The growth of industrial sector and the exports have created a good demand for industrial fasteners.

Industry Profile and Market Assessment

The industry is ever growing one and the demand for fasteners is directly related to the growth of the industrial sector. Besides the availability of cheap labour has also established a good export demand for the product. Screws are being exported to Middle East, Germany, U.S and other European countries. Machine screws are being manufactured in both the organized as well as unorganized sector. Some of the well known manufacturers are, GKW, Laxmi precision screws, Unbrako, Nettlefolds etc. There are numerous manufacturers in small scale sector, with the concentration being in Amritsar in Punjab.

Manufacturing Process & Know How

The machine screws are manufactured from carbon steel wires /rods. The material is fed into the cold frging machine to form the head at one end while the shank is drawn and cut at the other. The head fins are trimmed and the thread is rolled. The screws are then sent for slotting the head to give it a cheese head shape. The formed screws are then tumbled in a barrel to remove the burrs before being galvanized or plated as per the finish required. There are various standards available for quality measures. Such as Standard nos. 4206, 1368, 2389, 1365 etc.
Know how is available with the machinery suppliers as well as Govt. research laboratories.
The production capacity envisaged is 5000 kgs per month.
The unit will require a power of 10KW.

Plant and Machinery

The industry is basically a mechanical engineering one and requires mechanical working machines such as Cold Heading machine, Head Trimming machine, Thread Rolling machine, Screw head slotting machine, Tools, dies, Accessories, attachments etc., Polishing Barrel, Bench Grinder etc. all the items of plant and machinery are indigenously available. The total cost of plant and testing equipment etc. is estimated to be approx. Rs. 7.56 lakhs.

Raw material and Components

The basic raw material and components required are indigenously available and comprise items like, ICs, LEDs, Neon indicators, Transistors, Diode, Thermistors, Resistors, Capacitors, Transformers, Glass electrodes, PCBs, Push button assembly, cabinet chasis, hardware etc. The total cost of raw material and components is estimated to be about Rs. 56,000/-per annum.

Land and Building: For smooth operation of the unit it will require a built up area of 400 sq. mts. The space needed can be taken on rental basis.

Manpower

For smooth functioning of the unit the requirement of man power is expected to be around 6 persons.

Technical staff	self
Skilled & Semi skilled workers	4
Office staff	1
Office helpe	1

The annual salary bill is estimated to be around Rs.2.52 lakhs.

Cost of Project

	Rs. lakhs
Land & Building
Plant & Machinery	7.56
Other assets	1.50
Margin money	0.97
Total	10.03

Profitability

Rs. lakhs
Sales (5000*12 kgs)	30.00
Sale of scrap	1.20
Total	31.20
Raw material (5400kgs)	22.68
Salary	2.52
Other expenses	1.50
Depreciation	0.37
Interest	0.88
Cost of production	27.95
Profit	3.25

Requirement of Working Capital

W.C Margin money
Raw material	15 days	1.13	0.11
Work in process	7 days	0.59	0.06
Stock of finished goods	1 month	2.33	0.23
Working expenses	1 month	0.44	0.44
Sale on credit	15 days	1.30	0.13
Margin money for W.C			0.97

Break Even point

• 70%at 80% capacity
• 88% at installed capacity

Machinery Suppliers

a) Metal Working Machines

EMCO Press MartPlot - 19 Sector - 25 Faridabad
Haryana

Singhs Industries.
203, East Mohan Nagar
Amritsar
Punjab

b) Sri Tirupati Wires,
Mohan pur Road, Giridih,Jharkhand

MEMCO Machinery Mart
4094 Kuch Diwali Singh
Ajmeri Gate
Delhi

Bumra Industrial Corp.
G.T. Road,
Putlighar,
Punjab

Chhajju Singh &v Sons
616, Industrial Area,
Satsang Road,
Punjab