Just For Starters: Selected Projects to Start with 15,00,000


Just For Starters: Selected Projects to Start with 15,00,000

Author: NIIR Board
Format: Paperback
ISBN: 8178330237
Code: NI128
Pages: 276
Price: Rs. 475.00   US$ 50.00

Published: 2005
Publisher: Asia Pacific Business Press Inc.
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Everyone wants to do something that gives them chance to earn more money and it is possible by becoming an entrepreneur. Starting your own business is one of the few remaining paths to wealth. Entrepreneurship is one of the critical decisions to be made and it involves number of risk and has its own advantages also. But the charm of being a master of you is always above any other form of work. To start your own venture you have to decide on many things. Making a choice of the right project is a difficult decision for an entrepreneur and is an imperative decision. For the reason that rest of the challenges for setting up a business is based on the type of the product and fund to invest. It is necessary for the entrepreneur to have qualities like ability to plan, maintain good public relation, reasonable risk taking capacity and of course have adequate financial resources. The first step towards setting up an industry is the identification of product and feasible product line after a thorough study of the market for the product, its demand and supply position, peoples changing attitudes, competition in the line, method of distribution etc. In both developed and developing countries, the Government is turning to small and medium scale industries and entrepreneurs, as a means of economic development and a veritable means of solving problems. It is a seedbed of innovations, inventions and employment. You do not need to be a genius to run a successful small business, but you do need some help. And that is exactly what this book is, a guide into the stimulating world of small business ownership and management.

Startup India Stand up

Our Prime Minister unveiled a 19-point action plan for start-up enterprises in India. Highlighting the importance of the Standup India Scheme, Hon’ble Prime minister said that the job seeker has to become a job creator. Prime Minister announced that the initiative envisages loans to at least two aspiring entrepreneurs from the Scheduled Castes, Scheduled Tribes, and Women categories. It was also announced that the loan shall be in the ten lakh to one crore rupee range.

A startup India hub will be created as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding. Startup India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage startups with jobs creation.

Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem for nurturing innovation and Startups in the country. This will drive sustainable economic growth and generate large scale employment opportunities. The Government, through this initiative aims to empower Startups to grow through innovation and design.



What is Startup India offering to the Entrepreneurs?

Stand up India backed up by Department of Financial Services (DFS) intents to bring up Women and SC/ST entrepreneurs. They have planned to support 2.5 lakh borrowers with Bank loans (with at least 2 borrowers in both the category per branch) which can be returned up to seven years.

PM announced that “There will be no income tax on startups’ profits for three years”

PM plans to reduce the involvement of state government in the startups so that entrepreneurs can enjoy freedom.

No tax would be charged on any startup up to three years from the day of its establishment once it has been approved by Incubator.


This book is meant to help new entrepreneurs in product identification along with market survey studies, cost estimation, profitability calculation and various other aspects. Although guidance is available from the various promotional agencies, consultants etc., the initiative and zeal for setting up of industrial ventures must come from the entrepreneur himself. Some fundamentals of the book are market potential, basis and presumptions, implementation schedule, technical aspects, process of manufacture, quality control and standards, plant economics of various projects like auto miniature lamp, gold plating on metallic optical frames and jewelry, hockey sticks, multipurpose computer centre for IT enabled services/ cyber cafe etc.


The identification of a suitable project within the investment limit of a new entrepreneur is very difficult. This book offers you to choose from many businesses which you can start with Rs. 1500,000. The present book strives to meet this specific entrepreneurial need. Undoubtedly, this book is a gateway leading you to become your own boss.

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Related Books


Contents

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1. Aluminium Seal for LPG Cylinder
Introduction
Market potential
Basis and presumptions
Implementation schedule
Technical aspects
Process of manufacture
Quality control and standards
Plant economics

2. Auto Miniature Lamp
Introduction
Market potential
Basis and presumptions
Implementation schedule
Technical aspects
Manufacturing process
Pollution control
Energy conservation
Additional information
Plant economics

3. Automobile Silencer
Introduction
Market potential
Bright days ahead
Basis and presumptions
Implementation schedule
Technical aspects
Process of manufacture
Quality control and standards
Pollution control
Energy conservation
Plant economics

4. Bicycle Rims
Introduction
Bicycle rims
Implementation schedule
Notes
Machinery required
Market potential
Manufacturing process
Plant economics

5. Engine Mounting - Rubber Bonded
Introduction
Market potential
Basis and presumptions
Implementation schedule
Notes
Technical aspects
Process of manufacture
Plant economics

6. Gold Plating on Metallic Optical Frames and Jewelery
Introduction
Market potential
Decorative
Industrial uses
Basis and presumptions
Implementation schedule
Technical aspects
Process of manufacture
Preparation of the bath
Quality control and standards
Pollution control
Plant economics
7. Hard Chrome Plating
Introduction
Market potential
Basis and presumptions
Implementation schedule
Technical aspects
Process of manufacture
Sequence of operation
Quality control and standards
Production capacity
Motive power
Pollution control
Energy conservation
Plant economics

8. Hockey Sticks
Introduction
Market potential
Basis and presumptions
Implementation schedule
Notes
Technical aspects
Manufacturing process
Quality control and standards
Production capacity
Plant economics

9. Loud Speakers
Introduction
Market potential
Basis and presumptions
Implementation schedule
Technical aspects
Process of manufacture
Quality control and standards
Production capacity
Pollution control
Energy conservation
Additional information
Plant economics

10. L.T. Power Capacitor
Introduction
Market potential
Basis and presumptions
Implementation schedule
Notes
Technical aspects
Process of manufacture
Quality control and standards
Production capacity
Pollution control
Energy conservation
Additional information
Plant economics

11. Muti-Purpose Computer Centre for IT Enabled Services/ Cyber Café
Introduction
Market potential
Basis and presumptions
Implementation schedule
Notes
Technical aspects
Process of manufacture
Production capacity
Quality control and standards
Pollution control
Energy conservation
Additional information
Plant economics

12. Opthalmic and Sun Photochromatic Glasses
Introduction
Market potential
Basis and presumptions
Implementation schedule
Notes
Technical aspects
Process of manufacture
Quality control and standards
Plant economics

13. Raw and Processed Spices
Introduction
Market potential
Basis and presumptions
Implementation schedule
Technical aspects
Process of manufacture
Quality control and standards
Production capacity
Pollution control
Energy conservation
Plant economics

14. Regulated D.C. Supplies
Introduction
Market potential
Basis and presumptions
Implementation schedule
Notes
Technical aspects
Process of manufacture
Quality control and standards
Production capacity
Pollution control
Energy conservation
Additional information
Plant economics


15. Thermometers (upto 150OC)
Introduction
Market potential
Basis and presumptions
Implementation schedule
Notes
Technical aspects
Process of manufacture
Quality control and standards
Production capacity
Pollution control
Plant economics

16. Transformer and Coils (for Electronic Applications)
Introduction
Market potential
Basis and presumptions
Implementation schedule
Notes
Technical aspects
Process of manufacture
Production capacity
Pollution control
Energy conservation
Additional information
Plant economics

17. TV Tuners (Turret Type)
Introduction
Market potential
Basis and presumptions
Implementation schedule
Notes
Technical aspects
Process of manufacture
Quality control and standards
Production capacity
Pollution control
Energy conservation
Additional information
Plant economics

18. Uninterrupted Power Supply (UPS)
Introduction
Market potential
Implementation schedule
Notes
Technical aspects
Process of manufacture
Quality control and standards
Production capacity
Pollution control
Energy conservation
Additional information
Plant economics
Addresses of Present Manufacturers

19. Wind Cheater
Introduction
Market potential
Basis and presumptions
Implementation schedule
Technical aspects
Process of manufacture
Quality control and standards
Production capacity
Pollution control
Energy conservation
Plant economics

20. Wire Wound Resistors
Introduction
Market potential
Basis and presumptions
Implementation schedule
Notes
Technical aspects
Process of manufacture
Quality control and standards
Production capacity
Pollution control
Energy conservation
Additional information
Plant economics

21. Addresses of Raw Materials, Machinery / Equipments Suppliers

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Sample Chapters


(Following is an extract of the content from the book)
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BICYCLE RIMS

INTRODUCTION

Indian bicycle industry had a long period of regulation and protection. It is therefore, not surprising that today we find ourselves out of step with the rest of the world. We must come out of our long slumber, size ourselves up to the challenges of the world market and prepare to convert these into real opportunities before we are completely overtaken.

We must cash in on our great assets of low cost production, multi-skills, dedicated and peaceful human resource, just-in-time deliveries, low-cost infrastructure, etc.

In the area of product standardisation, where we suffer and lag behind, let us introduce it on priority. On time deliveries is another area where the overseas customer is very sensitive.

The industry seems to be coming of age with changing consumer tastes fuelled by high levels of media exposure. Today's consumers' young or old' seem to accept change more easily than they previously did. More dispensable income with the younger population is driving most businesses. The challenge for all of us would be to keep cycling and bicycles locked firm in consumers' minds and consideration set. The manufacturers should ensure that "Bicycles" per say are elevated from a position of being seen as a "poor man's vehicle" to a desirable companion. It will need a lot of change in the mindset and approach of manufacturers. It will call for technology upgradation, componentry upgradation, distribution channel upgradation, besides image building with consumers. Despite being one of the largest producers in the world we still remain in the dark ages of manufacturing process, material and customer care.

Bicycle Rims

Rims are main components of a bicycle and are supplied as original components. Rims have replacement market and can be sold as original component to the bicycle manufacturers concentrated in Punjab, Haryana, Mumbai, Chennai and West Bengal. These have good export market also.

IMPLEMENTATION SCHEDULE

The major activities may be tabulated as below:

A
Sl. No.Activity Period
1.Selection of site/working shed1
2.Preparation of feasibility report1
3.Registration with commissioner of industries/DIC1-2
4.rrangement of finance (term loan and working capital)2-3
5.Procurement of machinery and equipment2-3
6.Installation/Erection of machinery/Test equipment/Commissioning2-3
7.Procurement of raw materials2-3
8.Recruitment of technical personnel etc. 3
9.Trial production6

Notes :

[ol]
  • Many of the above activities shall be initiated concurrently.
  • Procurement of raw materials commences from the 6 months onwards.
  • In case the imported plant and machinery are required the implementation period of project increases by atleast 2-3 months as procurement of machinery from foreign is a time taking process.
  • [/ol]

    Machinery required

    [ol]
  • Automatic Rim Profile Machine
  • Butt Welding Machine
  • Cutting Machine
  • Shearing Machine
  • Re-rolling Machine
  • Automatic Rim Polishing Machine
  • Lathe Grinder
  • Hand Tools
  • [/ol]

    MARKET POTENTIAL

    In an era of competition, cycle industry is also not an exception. Easy access to modern techniques and technology and easy availability of raw materials and sufficient production capacity have further aggravated the competition. Indian bicycle industry is striving hard to keep their presence on global scene.

    India today is the second largest manufacture of bicycles in the world. But, the Indian share of exports is only around 6% of the total bicycle import market. The developed countries are today the largest importers of bicycles and components and due to the lack of development of new models and use of better and more expensive raw material, such as, aluminium alloy etc., India is left far behind. The Indian bicycle industry is likely to be caught in a web where imports into the country would be possible but exports out of the country would get more and more difficult.

    The bicycle industry in India is registering a continuous growth year after year. Aspirations and expectations of consumers have witnessed a lot of change thereby the overall scenario in this industry has undergone a visible change. The bicycle industry has also taken necessary steps and have prepared itself fully to adapt this change. The future of Indian bicycle industry seems to be quite bright. The socio-economic scenario appears to be favourable for the country to improve its performance making its impact visible in the industry as well. There will be a change in the demand pattern linked with consumer's changing aspirations and choices. This industry is already witnessing this to some extent. The newer segments of the market, like fancy bicycles, will grow far more rapidly. It would not at all be surprising if by 2010 the fancy bicycles and roadster bicycles have almost equal market share against existing 20% market share of fancy bicycles.

    Manufacturing process

    Rims are manufactured in various designs and sizes depending upon the size of cycle / design of bicycle. The most common type of rims manufactured in India are Roadster Model 28" X11/2, represents the dia of rim and 1,1/4" the width of rim. By changing the rolls, the desired shape of the rim can be obtained.

    The rims are generally manufactured in two thicknesses of strip i.e. 18 gauge (Heavy duty) for cycle rickshaw and heavy load carrying on the bicycle and 20 gauge for general bicycle use.

    The rims are manufactured out of C.P.C.F. strips. The strip roll is mounted on the rim forming machine and it is formed to the desired shape of the rim when the strip is passing through the set of rollers. The formed strip is cut to the required length and the ends are moulded on the Butt Welding Machine to make a round rim. The butt welding seam is then ground on the grinding machine. The rim is then put on the Rim Rounding machine to get perfectly round shape. Then nipple holes and value holes are punched on the power presses. The wheel is then straightened on the straightening machine and it is passed on to the polishing section for buffing and polishing. The rims are then electroplated, polished and packed after inspection.

    PLANT ECONOMICS

    Basis

    Number of Working Days = 25 Days/ Month 300 Days/ Annum

    Number of shift = 1 Per Day

    One Shift = 8 Hours

    Employment Generation = 13 People

    Production Capacity

    a) Quantity = 5,000 Nos. Rim /annum

    b) Value = Rs. 37,50,000/-

    A. FIXED COST

    (1)Machinery and Equipments

    REstimated Total
    Sl. No.Particulars
    1.im Forming Machine
    2.Automatic Rim Polishing Machine
    3.Electroplating Plant
    4.Punching press for spoke holes
    5.Hand Tools
    3,50,000

    (2)Preoperative (Installation Charges @ 10%)35,000

    (3)Office Equipment & Furniture30,000

    Total Estimated Fixed Cost (1+2+3)4,15,000

    B. WORKING COST

    (1)Salary & Wages (per month)

    Sl. No.ParticularsNos.
    1.Plant Engineer1
    2.Mechanical Engineer1
    3.Supervisor2
    4.Accountant/Clerk1
    5.Foreman1
    6.Skilled workers2
    7.Unskilled workers3
    8.Peon/chowkidar2
    Total Estimate65,000
    Plus perks @20% per annum 13,000
    Total Estimated Cost78,000

    (2)Raw material (per month)

    Sl. No.Particulars
    1.Cold Rolled Mild Steel Sheet 20 SWG 15000 MT @ Rs.55/- per MT
    2.Chemicals, acids, salts etc. for electroplating & lubricants consumables
    Total Estimated Cost1,40,000

    (3)Utilities & Overheads (Per Month)

    (a)Land & Building on Rent

    (b)Utilities

    [ol]
  • Power/Water
  • Fuel
  • Other Misc. Expenses
  • [/ol]

    (c)Contingencies

    [ol]
  • Maintenance/Repair
  • Postage and Stationery
  • Sales Expenses
  • Advertisement and Marketing
  • Stores
  • Telephone
  • Travelling and Conveyance
  • Misc. & Insurance
  • [/ol]

    Total Estimated Cost 25,000

    (4)Working Capital (per month)

    Sl. No.ParticularsAmount (Rs.)
    a. Salary/Wages78,000
    b.Raw Material1,40,000
    c.Utilities & Overheads25,000
    Total2,43,000

    (5)Total Working Capital = Working Capital (per month) * 3

    = 7,29,000

    C. TOTAL CAPITAL INVESTMENT

    a)Total Estimated Fixed Cost 4,15,000

    b)Total Working Capital 7,29,000

    Total 11,44,000

    ECONOMIC ANALYSIS

    (1)Production Cost (per annum)

    Sl. No.ParticularsAmount Rs.)
    a.Total Recurring Expenditure (Working Capital (per month) * 1229,16,000
    b.Depreciation on Machineries @ 25% 87,500
    c.Depreciation on Office Equipment @ 10% 3,000
    d.Interest on Capital @ 12%1,37,280
    Total31,43,780

    (2)Sales / Turnover (per annum)

    Sl. No.ParticularsAmount (Rs.)
    1.Sale of 5000 Rim / annum @ 75/- per rim
    Total Estimated Cost37,50,000

    (3)Profit (per annum) = Sales - Production Cost

    = (2)-(1) = 6,06,220

    (4)Profit Sales Ratio = Profit / Sales * 100 = 16.16%

    (5)Rate of Return = Profit / Total Capital Investment* 100

    = 52.99%

    (6)Break Even Point

    (a)Fixed Cost of Plant

    [ol]
  • Interests 1,37,280
  • Depreciation 90,500
  • 40% of Salaries & Overheads 41,200
  • [/ol]

    Total 2,68,980

    (b) Profit = 606220

    As, B.E.P. = Fixed Cost of Plant*100 / Fixed Cost of Plant +Profit

    = 30.73%


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    About NIIR PROJECT CONSULTANCY SERVICES

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    NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. Its various services are: Pre-feasibility study, New Project Identification, Project Feasibility and Market Study, Identification of Profitable Industrial Project Opportunities, Preparation of Project Profiles and Pre-Investment and Pre-Feasibility Studies, Market Surveys and Studies, Preparation of Techno-Economic Feasibility Reports, Identification and Selection of Plant and Machinery, Manufacturing Process and or Equipment required, General Guidance, Technical and Commercial Counseling for setting up new industrial projects and industry.

    NPCS also publishes varies technology books, directory, databases, detailed project reports, market survey reports on various industries and profit making business. Besides being used by manufacturers, industrialists and entrepreneurs, our publications are also used by Indian and overseas professionals including project engineers, information services bureau, consultants and consultancy firms as one of the input in their research.

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