Automobile Body Building 3us36

AUTOMOBILE BODY BUILDING Introduction : 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. About Services Bus/Truck 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. Market Potential With rapid changes in the society, now a days it has become necessary to provide good and efficient transport service to the public. Also with the rapid industrialization, public and goods are 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/Trucks will increase in the coming years. Suggested Capacity (per annum): The automobile body building per annum will be as follows: A.

Quantity Bus Body Building (complete) Value of each bus body building Turnover (Rs. in Lakhs)

: : :

75 Nos. Rs. 4,00,000 Rs. 300.00

B.

Quantity Bus/Truck Body Building (minor) Avg.Value for each bus/truck body building Turnover (Rs. in Lakhs) Total Turnover (A+B)

: : : :

200 Nos. Rs. 20,000 Rs. 40.00 Rs. 420.00

No. of working days No. of Shifts

= =

One shift

=

300 days per year 1 per day. 10 hours

Basis:-

Infrastructure Requirement: The main Infrastructure facilities required are: Required area

800 Sq.ft.

Power requirement Water (required in every working day)

25 kW. 2000 Ltrs.

Raw Materials and its availability: The typical unit being a service industry, the amount required for working materials is calculated at Rs.249.00 lakh. All material & consumable items can be procured from local agencies in the open market. Suggested Location: Automobile Bus/Truck Body Building units can be located near big cities, big towns and as well as in large urban areas preferably near National High way in the region, including Sikkim.

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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. PROJECT ECONOMICS The total capital requirement estimated as under : -. Fixed Capital (Amount Rs. in lakhs) Land & Building Own/Lease Civil Works i.) ii.)

B.

Factory Shed 600 sq.ft.@ Rs. 700/sq.ft. Office building/ Godown 200 sq.ft. @ Rs.800/sq.ft.

Plant & Equipments Other misc. Fixed Assets (Water arrangement, Electrical fittings & Other Equipments) Preliminary & Pre-operative Expenses Sub Total (A) Rs. Working Capital (Norms) Raw Materials/Consumables 15 days Working Expenses 1 month Finished Goods 10 days Receivable 7 days Sub Total (B) Rs. Note: Working Capital to be financed as: Margin Money Bank Finance: Capital Cost of Project: 1. Fixed Cost 2. Margin money for W.C.

….. …..

Means of Finance Promoter’s Equity(25%) Term Loan(75%)

4.20 1.60 20.75

0.75 0.50 27.80 (Amount Rs. in lakhs) 12.45 1.20 9.60 7.90 31.15 Rs. 10.20 Rs. 20.95 Rs. 31.15 Rs 27.80 Lakhs Rs 10.20 Lakhs Rs 38.00 lakhs (Rs. in Lakhs) 9.50 28.50 38.00

Production Expenses Raw materials Wages & Salaries Utilities Repair & Maintenance istrative Overhead Depreciation Selling expenses 5% on sales Interest

(Rs. in Lakhs) 249.00 11.22 2.90 0.50 0.80 2.44 17.00 6.94 290.80

Profitability: Based on the sales turnover and the operating expenses, the profit would be Rs. 49.2 lakhs per year. This works out to a return on capital investment of 84%. The unit would breakeven at about 27% of the rated capacity.

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Machinery and Equipments:

Description 1. Motorized Guillotine Sheet Shearing Machine Capacity 2500×4 mm with 5 HP electric motor and starter etc. also fitted with front and back side gauges, sheet holding devices etc 2. Power operated Press Brake bending capacity 1200 × 2 mm, 50 Ton with 10 HP Main Motor and 2 HP raw adjustment Motor 3. Suspension type M.I.G. Welding system 150 Amp. along with power source, wire feeder, Torch and flow Calibrated Co2 regulator and Co2 heated with core assembly OPC. 4. Gas Welding set with all the Accessories etc. 5. Arc welding machine 300 Amps. 15 kVA Air Cooled complete with all the accessories 6. Air Compressor with painting equipment and accessories for painting 7. Different types of power/Air operated tools like Nut runner, drilling gun etc. 8. Drilling Machine 1½" capacity 9. Metal cutting bandsaw for cutting Aluminium sections complete with 2 HP Electric motor and accessories 10 Other miscellaneous equipments 11 Pollution Control Equipment

Qty

Rupees

1

4,00,000

1

7,00,000

1

1,00,000

1

20,000

2

80,000

1

1,50,000

L.S.

2,00,000

1

50,000

1

75,000

L.S. -

Total plant and m/c cost

2,00,000 1,00,000 12,75,000

Raw Materials (per month) Sl. No. 1. 2. 3. 4. 5. 6. 7. 8.

9.

Particulars

4 MT

40,000

Amount (In Rs.) 1,60,000

6 MT

40,000

2,40,000

1 MT

40,000

40,000

1 MT

2,00,000

2,00,000

20 MT 1 MT 0.5 MT

50,000 40,000 2,50,000

10,00,000 60,000 1,25,000

Qty.

M.S. Channel 75 × 40 to × 50 mm M.S. Equal Angle 25× 25×3 to 50×50×6 mm M.S. Flat 50 to 70 mm wide Aluminium chequered Plate 8 mm to ½ inch CR/BP Sheet 10 to 26 SWG M.S. Pipe 3/4" to 1" Dia Aluminium Rolled Sections Bought out items and hardware items Other bought out items such as Raxine Ply,. PVC. Sheet. Foam OTC, Electrical fittings and fixtures, emblem etc.

Rate (Rs.)

L.S.

1,00,000

L.S.

1,50,000

Total Rs. Annual Requirements Rs. 249.00 Lakhs Utilities: Power Requirement: For Plant & Machinery 45 H.P. For General Lighting 2 H.P. Total 47 H.P. Annual power consumption: 47 H.P. X 0.746 X 5 hrs.X 300 days.X Rs5.50 Annual Electric Bill Rs.= 2,90,000

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20,75,000

Break Even Analysis A.

Variable Cost: Raw Materials Utilities Selling Expenses

B.

Semi-Variable Cost: Wages & Salaries Repair & Maintenance istrative Overhead Depreciation Interest

(Rs. in Lakhs) 249.00 2.90 17.00 268.90 (Rs. in Lakhs) 11.22 0.50 0.80 2.44 6.95 19.01 Rs. 340.00 Lakhs Rs. 71.1 Lakhs 27 %

C. Sales Turnover: D. Contribution: E. Break Even Point B/D X !00% Manpower: Category

Production manager, Maintenance engineers Technical (Skilled Worker) Technical (Semi-skilled Worker) Chowkidar/Watchman

No. of Person 1 2 3 5 2

Salary Per Person Per Month(Rs) 10,000 8,000 7,000 6,000 4.000

Monthly Salary Bill (Rs.) 10,000 16,000 21,000 30,000

8,000 85,000 Salary Bill Rs 10.20 Lakhs + Benefits @10% annually i.e. Rs 1.02 Total Annual Salary Bill: Rs. 11.22

Highlights: The major highlights of the project are as follows: Total Capital requirement Rs. 58.33 lakhs Promoter’s contribution Rs. 9.50 lakhs Annual Sales realization Rs. 340.00 lakhs Annual Operating Expenses Rs. 290.80 lakhs Annual Profit Rs. 49.20 lakhs Return on sales 14% Break-even point 27% No. of person employed 13

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