The first and paramount problem faced by an entrepreneur is "WHAT TO PRODUCE"? Academic qualifications are not prerequisites for setting up a successful industry. 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, People's changing attitudes, Competition in the line, Method of distribution etc. 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.
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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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:
| Sl. No. | Activity | Period |
|---|
| 1. | Selection of site/working shed | 1 |
| 2. | Preparation of feasibility report | 1 |
| 3. | Registration with commissioner of industries/DIC | 1-2 |
| 4. | Arrangement of finance (term loan and working capital) | 2-3 |
| 5. | Procurement of machinery and equipment | 2-3 |
| 6. | Installation/Erection of machinery/Test equipment/Commissioning | 2-3 |
| 7. | Procurement of raw materials | 2-3 |
| 8. | Recruitment of technical personnel etc. | 3 |
| 9. | Trial production | 6 |
Notes :
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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
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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
| Sl. No. | Particulars |
|---|
| 1. | Rim Forming Machine |
| 2. | Automatic Rim Polishing Machine |
| 3. | Electroplating Plant |
| 4. | Punching press for spoke holes |
| 5. | Hand Tools |
| | Estimated Total3,50,000 |
(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. | Particulars | Nos. |
|---|
| 1. | Plant Engineer | 1 |
| 2. | Mechanical Engineer | 1 |
| 3. | Supervisor | 2 |
| 4. | Accountant/Clerk | 1 |
| 5. | Foreman | 1 |
| 6. | Skilled workers | 2 |
| 7. | Unskilled workers | 3 |
| 8. | Peon/chowkidar | 2 |
| Total Estimate | 65,000 |
| Plus perks @20% per annum | 13,000 |
| Total Estimated Cost | 78,000 |
(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 Cost | 1,40,000 |
(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. | Particulars | Amount (Rs.) |
|---|
| a. | Salary/Wages | 78,000 |
| b. | Raw Material | 1,40,000 |
| c. | Utilities & Overheads | 25,000 |
| Total | 2,43,000 |
(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. | Particulars | Amount Rs.) |
|---|
| a. | Total Recurring Expenditure (Working Capital (per month) * 12 | 29,16,000 |
| b. | Depreciation on Machineries @ 25% | 87,500 |
| c. | Depreciation on Office Equipment @ 10% | 3,000 |
| d. | Interest on Capital @ 12% | 1,37,280 |
| Total | 31,43,780 |
(2)Sales / Turnover (per annum)
| Sl. No. | Particulars | Amount (Rs.) |
|---|
| 1. | Sale of 5000 Rim / annum @ 75/- per rim | |
| Total Estimated Cost | 37,50,000 |
(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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Terms of use 
Adhesives, Chemical, Drugs, Gums, Insecticides, Jute, Pe ...