PROJECT PROFILE ON INVERTERS ***

Name of the Product Product Code Quality & Standards : : : Inverters 366203010 There are no Indian Standard for these types of Inverters & Converters. Products Quantity Static Inverters 1200 Nos, 2006-07. Value Rs. 30,36,000/-

Production Capacity

Month & Year of Preparation Prepared By

Small Industries Service Institute, Ministry of Small Scale Industries, Government of India 107, Industrial Estate, Kalpi Road, Kanpur-208012. Tele: 2295070, 2295071 & 2295073 (EPBAX) Tele. No. 2295072 (SENET & TRC) Tele/Fax No.: 0512- 2220831 Email: [email protected] Website: sisikanpur.gov.in

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PART-II I. INTRODUCTION:

Inverters: An Inverter is a device, which converts DC power into alternative sources. This conversion may be accomplished by electro-mechanical means namely motor, Generator sets are entirely by electronics means. Inverters in which power conversion is accomplished by SCRs are called static inverters. A static inverter uses transistors as switches and for high power applications only SCRs are used. Inverters find applications where emergency stand-by power is required and / or there is no AC power available. Such applications are fluorescent tube lighting during power failure in vehicles, in hospitals, airports etc. These also find wide uses as stand-by power supply for computers, instrumentations and telecommunication equipment etc. II. MARKET POTENTIAL: Inverters up to 500 VA are normally used for a wide number of applications. Inverters are low capacity find wide use in fluorescent lighting. Present trend of usage of tube lights in buses, trucks, railways, coaches has increased the market potential. These can also be used in emergency lamps. Increase of health centers / hospitals has directly created the demand as emergency / stand-by power supply in such cases. There being tremendous growth of industry and usage of modern instrumentation and process control equipments the demand of inverters and converters has widely increased. Period (in months) 1. 2. 3. 4. Preparation of project report Registration and other formalities Sanction of loan by financial institutions Plant & Machinery a) Placement of orders b) Procurement c) Power connection/Electrification d) Installation /Erection of Machinery/Test Equipment
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1 1 3

1 2 2 2

5. 6. 7. 8. Note: 1. 2. 3.

Procurement of raw materials Recruitment of Technical Personnel etc. Trial Production Commercial production

2 2 11 12

Many of the above activities shall be initiated concurrently. Procurement of raw materials commences from the 8th month onwards. When imported plant and machinery are required, the implementation period of project may vary from 12 months to 15 months. TECHNICAL ASPECT:

V.

MANUFACTURING PROCESS: Special transformers needed for such product are procured from outside as per the given specifications. The critical components, which go to make up the products, are tested to ensure that they meet the required specifications. The components are fixed and solder on printed circuit board (PCB) according to the design. Controls and sockets are assembled individually. The PCB transformers etc. are mounted on the chassis and all the inter connections made. The waveforms at various checkpoints, output voltage and power are checked adjustments are made so that the products meet the desire performance specifications. On completion of testing the instrument is kept for soaking the specific time period to ensure its quality and reliability. Process Flow Chart:
1. Purchased 2. Inspection of Components 3. Sub-assembly 4. Wiring 5. Checking of Finished product

7. Packing

6. Testing

Production Target Products Static Inverters 1000 VA Quantity 1200 Nos.

Value Rs. 30,36,000/-

QUALITY CONTROL & STANDARD: There are no Indian Standards for these types of Inverters and Converters. However, sample technical data for each type of product is given below: Inverters Input Voltage AC AC Output Output Power & Regulation Frequency Regulation Nominal efficiency 1. POWER REQUIRED: Water Required: 10.0 KWH 1000 KL/monthly 140 to 260 Volts 220Volts 1000 VA + 2% + 1% 75%

2. ENERGY CONSERVATION: The following steps may be taken for the conservation of energy. 1. Machinery & Equipments parts, which are revolving and reciprocating should be properly, lubricated from time to time with suitable lubricant oil. Layout of the unit should be in such a way in that no back tracking of material is there. All electric switches may be kept off, when not required. The entire transmission belt will be tightened before starting the work is whereever applicable. Fluorescent tube with electronic Chokes may be used for energy saving. Further recently developed compact fluorescent tubes called (CRT) of 10, 15, watts Philips/Glaux made may be used for energy saving and decoration. These self-ballasted fluorescent lamps are high efficiency replacements for ordinary bulbs. For same light output, CFLEBs consume about one-fifth the power consumed by ordinary bulbs, thereby saving a lot of energy. The savings get further multiplied when CLEBs are used in air conditioned areas, since the saving of energy by using CLEBs also corresponds to less heat dissipation reducing load on air conditioners. The life of CFLEBs is about 8000/10000 hours i.e. about 10 times that of ordinary bulb. The typical payback period in terms of savings of energy bills and cost of ordinary lamps is about 6 months operation. Unlike ordinary bulbs, these CFLEBs provide choice of three colours designated A, B & C, to suit individual requirements.
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2. 3. 4.

5.

Electronic Ballast, with protection against high voltage spikes, along with high quality CFLs make these composite CFLEI3s (or self ballasted CFLs) Slim, lightweight, efficient and reliable units. 6. 7. As far as possible Solar Energy and day light will be used keeping all the other lights off. As far as possible inductive load of motor will be reduced and high power factor will be used with the aid of capacitors of appropriate sizes.

POLLUTION CONTROL: 1. This industry involves pollution to some extent for which State Pollution Control Board has to be approached. Minimum height of shed will be maintained with exhaust fans should be installed for removing decongestion proper ventilation, removal of cokes fumes etc. FINANCIAL ASPCCTS: 1. Fixed Capital: Land and Building (rented) On Rent @ Rs.20/-Sq. meter Covered Area 200 Sq. meter 2. Machinery and equipment: HP/KW Ind/lmp Qty. Value(Rs.) 4,000.00

2.

VI.

Sl. Description No.

(a) Production Unit- Name of machine with specification 1. 2. 3. 4. 5. 6. 7. 8. 9. Coil winding machine Frequency counter (100 MHz) LCR Bridge (Digital) Ocilla scope dual trace (10 MHz) Ind Ind Ind Ind 2 1 1 1 2 2 2 1 1 15,000/8,000/14,000/16,000/3,700/2,500/16,000/1,200/8,000/-

DC regulated power supply (30V, 2 Amp) Ind Digital Voltage (4 digits) Multi-meter Line frequency Monitor True RMS meter (4 digits)
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Ind Ind Ind Ind

10. Dummer Stat (4amps & 8 Amps) 11. Panel Meters 12. HV. Tester 13. Rheostats 14. Electric Drill () (Pillar Type) 15. Megger

Ind Ind Ind Ind Ind Ind

3 4 1 10 1 2

2,000/1,000/6,000/2,000/4,000/4,000/91,500/-

(b) (c) (d)

Electrification & Installation charges @ 10% Cost of Jigs/Fixtures/Dies etc. Cost of Office Equipment/Working Table etc. Total Cost of machinery & Equipments (a + b + c + d )

9,150/8,000/80,000/1,88,650/-

3.

Pre-operative Expenses Total Fixed Capital (2 + 3)

10,000/1,98,650/-

VII.

WORKING CAPITAL (Per month): 1. Raw Material (Per month): STATIC INVERTERS (1000 VA)

Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9.

Description of Items Resistors Diodes Capacitors Switches Transistors S.C.R. Mosfet Heat Sink ICs

Ind/ Imp. Ind.

Qty. 12,000 5,000 2,100 200 2,200 200 600 500 800

Rate (Rs.) 0.18 0.50 2.00 6.00 1.00 5.00 12.00 7.00 12.00

Value (In Rs.) 2,160/2,500/4,200/1,200/2,200/1,000/7,200/3,500/9,600/-

10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34.

LED Connectors Auto Wires Wire & Sleeves Relays Lug Cabinet PCB Jacks Pre-set Socket Fuse Holder Mains Lead Copper Wire Tapes Sleeves Plastic Formers Impreqnation Compound Ktheriod + Prespam Paper P.F. Hardware Coir Varnish Solder Fluxes Hardware Fittings and Misc. items.

600 100 1 00 Mtr. 10 Packets 100 300 100 100 800 700 100 100 100

0.75 10.00 14.00 72.00 34.00 0.50 170.00 30.00 1.25 1.50 5.00 10.00 5.00

450/1 ,000/1 ,400/720/3,400/150/17,000/3,000/1,000/1,050/500/1,000/500/21,250/140/100/1,200/5,000/-

125 Kq. 170.00/Kq. 20 Rolls 1 00 Meters 30Kg. 7.00 1.00/Mtr. 40.00/kq.

2000

1.00

2,000/3,000/-

65 Boxes 1 0 Ltrs. 2 Kg. 200 Gms.

320/Box 60/Ltr. 250/Kg.

20,800/600/500/2,000/26,200/-

LS

Total:

1,49,520/-

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(2) Sl.No. 1. 2. 3. 4. 5. 6. 7.

Staff & Labour (Per Month): Personnel Manager R&D / Design Engineer Skilled Worker Semi-Skilled Worker Production Supervisor Accountant/Clerk/Typist Helper/Unskilled Worker No. 1 1 2 2 1 2 2 Rate(Rs.) 6,000/4,500/3,250/3,000/4,000/2,800/2,500/Total: Perquisites @ 15% on the total salary Total: Say: Amount (In Rs.) 6,000/4,500/6,500/6,000/4,000/2,800/5,000/34,800/5,220/40,020/40,000/-

(3) Utilities: i. ii. Electricity 900 Units @ 5.00/Unit Water Total: (4) Other Contingent Expense ( Per Month): 1. 2. 3. 4. 5. 6. 7. 8. 9. Rent Postage & Stationery Advertisement Repair & maintenance Telephone /Fax charges Transport, Packing & Conveyance charges Consumable Insurance Miscellaneous Expenses Total:
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4,500/300/4,800/-

4,000/1,200/2,000/3,000/3,000/2,000/1,000/800/1,000/18,000/-

VIII. TOTAL RECURRING EXPENSES ( PER MONTH) : = 1 +2+3+4 = 40,000 + 1,49,520 + 4,800 + 18,000 IX. WORKING CAPITAL FOR 3 MONTHS 2,12,320 X 3 X. = Rs. 6,36,960/= Rs. 2,12,320/

TOTAL CAPITAL INVESTMENT: i. ii. Fixed Capital Total Working Capital for 3 months Total: Say: 1,98,650/6,36,960/8,35,610/8,35,600/-

XI.

MACHINERY UTILISATION:

It is expected that during first year machine utilization will be70% and during second year 85% and 100% in subsequent years. XII. FINANCIAL ANALYSIS: 1. COST OF PRODUCTION (Per Annum): i. ii. iii. iv. v. Total Working Capital per annum Depreciation on machinery & equipment @ 10% Depreciation of Jigs and fixtures, Dies @ 25% Depreciation on office equipments etc. @ 20% Interest on total capital investment @ 16% per annum Total Cost of Production: Say: XIII. TURN OVER (Per Annum): Item Inverters (1000 VA) Qty. (Nos.) 1,200 Rate/Unit (Rs.) 2,530/Total:
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25,47,840/10,065/2,000/16,000/1,33,696/27,09,601/27,09,600/-

Total Sales Rs. 30,36,000/Rs. 30,36,000/-

XIV.

NET PROFIT (Per Annum): (Before Income-tax) Turn Over 30,36,000/(-) (-) Cost of Production 27,09,600/ = Rs. 3,26,400/-

XV.

NET PROFIT RATIO: Net Profit Per Annum X 100 Total Sales/Annum 3,26.400X 100 30,36,000 = 10.7%

XVI. RATE OF RETURN: = Annual Profit X1 00 Total Capital Investment XVII. BREAK EVEN ANALYSIS: Fixed Cost (Per Annum): 1. 2. 3. 4. 5. 6. Rent Depreciation on Machinery & Equipments @ 10% Interest on Total Capital Investment @ 16% Insurance 40% of Salary 40% of other contingent expenses Total Fixed Cost: Say: Break Even Point: Fixed Cost X 100 = Fixed Cost + Profit Additional Information: a. The Project Profile may be modified/tailored to suit the individual entrepreneurship qualities/ capacity, production programme and also to suit the locational characteristics wherever applicable.
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3.26.400X 100 = 8,35,600

39%

48,000/28,065/1,33,696/9,600/1,92,000/63,360/4,74,721/4,74,700/-

4,74,700 X 100 4,74,700 + 3,26,400

59.2%

b.

The electrical Technology is undergoing rapid strides of change and there is need for regular monitoring of the national and international technology scenario. The unit may, therefore, keep abreast with the new technologies in order to keep them in pace with the developments for global competition. Quality today is not only confined to the product or service alone. It also extends to the process and environment in which they are generated. The ISO 9000 defines standards for Quality Management systems and ISO 14001 defines standards for Environmental Management system for acceptability at international level. The unit may therefore adopt these standards for global competition. The margin money recommended is 25% of the working capital requirement at an average. However, the percentage of margin money may vary as per banks discretion.

c.

d.

XVIII. Names & Addresses of Machinery & Raw material Suppliers: 1 2 M/s Stead Electronics, 17-U.A., Jawahar Nagar, Delhi-1. M/s Bhuji Electronics, C-106/4, Naraina Industrial Area, Phase-1, New Delhi-110028. M/s Transtronix India (P) Ltd., 80A, DDA shed. Okhla Phase-II, New Delhi-110020. M/s Picco Electronics & Electrical Ltd., Science & Industry Division, Shivnagar Estate, Worli, Mumbai-400018. M/s Chaudhary Trading Co., Bhagirath Place, Delhi-6. M/s Electronics Development Laboratory, 6/3, Kirti Nagar Indl. Area, New Delhi-110015. M/s British Physical Laboratories, 501, Poonam Chambers, Dr. Anne Besant Road, Worli, Mumbai-400018.

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