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Domestic Pressure Cookers

PRODUCT CODE QUALITY AND STANDARDS PRODUCTION CAPACITY MONTH AND YEAR OF PREPARATION PREPARED BY : 345301005 : IS 2347:1995 for Domestic Pressure Cookers IS 1766:1994 on Rubber Gaskets for Cookers : Qty. Value : 27,000 Nos. (Per annum) : Rs. 128.79 Lakhs

: April, 2003 : Small Industries Service Institute Industrial Area - B, Ludhiana - 141003 (Punjab) Tel. Nos.: 0161-2531733-34-35 Fax No. : 0161-2533225 E-mail: [email protected] Website: www.sisildh.com Telegram: SMALLIND

INTRODUCTION
The pressure cookers are extensively used in household for preparing food. The pressure cookers have preference over the conventional cooking utensils due to the advantage of retaining the nutritive value and flavour of the cooked food and less time required for cooking and thus effecting considerable savings in time and fuel. It is a closed cooking vessel for use with external heat source, capable of maintaining working steam pressure of 1.0 Kg.Sq. cm. The full liquid capacity of vessel i.e. total internal volume with lid in position, ranges from 2 to 10 litres capacity. But in market, the, Pressure Cookers of 3 and 5 litre capacity are mostly demanded by the customers. This project profile envisages the manufacturing of 5 ltrs. capacity cookers.

It is a well known fact that a pressure cooker cooks food at a pressure higher than that of ambient pressure, thus necessitating sufficient precaution required in designing, manufacturing and use of domestic pressure cooker to safeguard against accidents in the kitchen.

MARKET POTENTIAL
It has been observed, keeping in view the average family, that medium size/capacity pressure cookers have greater market. With the rapid advancement in the general living standards of the people, the demand of pressure cookers is increasing day by day. Accordingly, there is great scope for setting up of the new units for manufacture of pressure cookers to standard specifications.

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B ASIS AND PRESUMPTIONS

1. The Project Profile has been prepared on the basis of single shift of 8 hours each day, 25 days in a month and at 75% efficiency. 2. It is presumed that in the lst year, the capacity utilisation will be 60% followed by 70% in the next year and 80% in the subsequent years. 3. The rates quoted in respect of salaries and wages for skilled workers and others are the minimum rates in the State/ neighbouring States. 4. Interest rate for fixed and working capital has been taken @ 16% on an average, whether financed by bankers or by Financial Corporation. 5. M a r g i n m o n e y r e q u i r e d i s minimum 30% of the project investment. 6. T h e r e n t a l v a l u e o f t h e workshed and other built up/ covered area has been taken at the rate of Rs. 25 per square meter. 7. The rates quoted in respect of machines, equipment and raw materials are those prevailing at the time of preparation of the Project Profile and are likely to vary from supplier to supplier and place to place. When a tailor made project profile is prepared necessary changes are to be made.

IMPLEMENTATION SCHEDULE
Sl.No. Activity
1. Preparation of Project Report: a) Calling quotations b) Preparation 2. Provisional Registration as SSI 3. Financial Arrangement 1 month 2 months 1 week 2 months

Period

4. Purchase and procurement of 2 months machines and equipments 5. Installation of Machinery 6. Electrification 7. Recruitment of Staff 1 month 1 month 1 month

TECHNICAL ASPECTS
Process of Manufacture The pressure cooker consists of components like main body, lid, regulator, gasket, fusible plug, handles, lugs etc. The main body and lid of the pressure cooker are manufactured of aluminum alloy sheet/Circles of different thicknesses depending upon the size and specifications of the Cooker. The components i.e. pressure regulator, Bakelite Handles and Lugs, Rubber Gasket, Fusible Plugs, Screws, Rivets, Packing Boxes etc. are usually purchased from outside sources by the pressure cooker manufacturers. In the manufacturing of pressure cookers operations like circle cutting, deep drawing of body, drawing of lid, trimming of body and lid, notching of body, drilling of holes in body and lid, fixing of lugs, handles, vent pipe, buffing and polishing, testing, packing etc. are involved. Quality Control and Standards The Indian Standard Specification No. IS 2347:1995 for domestic pressure cooker and IS 1766:1994 for Rubber

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Gaskets for cookers and other relevant specifications prepared by the BIS should be followed for quality control and various tests. The manufacturer should have arrangement to carry out the important tests in the factory premises. Production Capacity (per annum)
Quantity(per annum) 27,000 Nos. Value (Rs.) 1,28,79,000

(ii) Machinery and Equipments Sl. Description No. 1. Guillotine shearing machine 1250mm 8 S.W.G. capacity (aluminium) complete with standard accessories, electric motor, switch, starter etc. No. 1 HP 5 Total (In Rs.) 1,50,000

Motive Power Pollution Control

38 KW.

There will not be any pollution in the press shop and assembly shop. However, exhaust fans and dust collectors will be installed in the polishing and buffing section to control the air pollution. Energy Conservation All the machines are to be provided with separate electric motors to avoid idle running. Shunt capacitors will be installed to improve the power factor. Adequate day light provisions are to be made in the factory shed by providing transparent roof sheets.

2. Heavy duty circle 1 cutting machine, 600 mm dia capacity 8 S.W.G. (aluminium) complete with standard accessories, electric motor, switch, starter etc. 3. Deep Drawing 1 double action toggle press No.5 complete with standard accessories, electric motor, switch, starter etc. 4. Hydraulic Press 1 50 tonne cap. complete with standard accessories, electric motor, switch, starter etc. 5. Power press 60 tonne cap. complete with electric motor, switch, starter etc. 1

25,000

15 5,50,000

2,00,000

1,50,000

FINANCIAL ASPECTS
A. Fixed Capital
(i) Land and Building (per month) Built up area/ covered area: Store and office Working shed a) Machine shop b) Packing Section, etc. c) Buffing and Polishing section Total 7,500 300 Sq. mtrs. @ 25/ Sq.mtr. (In Rs.)

6. Lathe Machine 1820 mm 1 bed length complete with standard accessories, electric motor, switch, starter etc. 7. Drilling machine bench type 12 mm cap. complete with standard accessories, electric motor, switch, starter etc. 8. Double ended bench grinder 200 mm wheel dia motorised 9. Double ended Buffing and polishing Machine, motorised 1

1,00,000

7,500

12,000

20,000

10. Testing equipments L.S. like Hydraulic pressure test, Air leakage test,

30,000

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Sl. Description No. Testing of pressure regulating device etc. 11. Workshop tools, L.S. Press Tools, Measuring tools, Work Benches etc. Total Say 75,000 No. H.P. Total (In Rs.) Sl. Particulars No. Qty. Rate/ K g . Kg.(Rs.) Total (Rs.)

13,19,500 13,20,000 1,32,000

2. Bought out 5400 41.66/ 2,25,000 components i.e. sets set pressure regulator, bakelite handles and lugs, gaskets, fusible flugs, screws and rivets etc. 3. Packing Boxes, Carton tape, Printed Literature 2250 Nos. Total (iii) Utilities 1. Power 2. Water Total ( iv) Other Contingent Expenses 1. Rent 2. Postage and Stationery 3. Consumable Stores like tools lubricants etc. 4. Telephone Charges 5. Repair and Maintenance 6. Transportation Charges 7. Advertisement and Publicity 8. Insurance 9. Miscellaneous Expenses 10. Sales Expenses Total Say (v) Total Recurring Expenses 1. Raw Material 2. Personnel 3. Utilities 4. Other contingent expenses Total Say 20 each 45,000

Electrification and Installation Charges including cost of power connection and security deposit @ 10% of cost of machinery and equipments. Cost of Office Equipment, Furniture etc. Total cost of machinery and equipment.
(iii) Pre-operative Expenses Total Fixed Capital (i + ii + iii)

8,10,000 (Rs.) 13,300 200 13,500 (Rs.) 7,500 1,000 1,500 700 2,500 4,000 2,000 1,500 1,000 5,000 26,700 27,000 (Rs.) 810000 45100 13500 27000 895600 896000

25,000 14,77,000 25,000 Rs. 15,02,000

B. Working Capital (per month)

(i) Personnel Sl. Designation No. (1) Engineer/Manager No. 1 Salary (Rs.) 4500 3000 3500 2500 2000 1800 1500 800 Total (In Rs.) 4,500 3,000 3,500 12,500 8,000 5,400 1,500 800 5,900 45,100

(2) Accountantcum-typist 1

Technical
(3) Foreman/Supervisor (4) Skilled Workers (5) Semi-Skilled Workers (6) Un-skilled Workers (7) Peon/Chowkidar (8) Part Timer Sweeper 1 5 4 3 1 1 Total (ii) Raw Materials (per month) Sl. Particulars No. Qty. Kg. Rate/ Kg.(Rs.) Total (Rs.)

Add Perquisites @ 15% of salary

C. Total Capital Investment

(i) Fixed Capital Rs. 15,02,000 (ii) Working capital (for 3 Months) Rs. 26,88,000 (896000 3) Total Rs. 41,90,000

1. Aluminium alloy 5400 sheet/circles of 8, 10, and 14 S.W.G.

100 5,40,000

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MACHINERY UTILISATION
All the machines will be fully utilized. There wont be any idle capacity.

Fixed Cost (per year) 3. Total interest 4. Insurance 5. 40% of salary and wages 6. 40% of other contingent expenses (Excluding rent and insurance) Total Say B.E.P. = = =

(In Rs.) 6,70,400 18,000 2,16,480 86,400 12,45,280 12,45,000

FINANCIAL ANALYSIS
(1) Cost of Production (per year) 1. Total recurring cost 2. Depreciation on machinery and equipments @ 10% (Including pre-operative expenses) 3. Depreciation on tools, instruments and laboratory equipment @ 20% 4. Depreciation on office equipment @ 20% 5. Interest on total investment @ 16% Total Say (2) Turnover (per year) Sl. Item No. 1. Pressure Cookers Qty. Nos. 27000 Rate (Rs.) 70/ Kg. Total (In Rs.) 756000 12879000 (In Rs.) 1,07,52,000 1,38,000

Fixed Cost 100 Fixed Cost + Profit 12.45 100 12.45 + 12.92 49.07%

21,000 5,000 6,70,400

1,15,86,400 1,15,87,000

449 12123000

2. Sale of aluminium 10800 scrap Kg. Total

(3) Net Profit (per year) (Before Income Tax) Turnover - Production Cost Rs. 128.79 115.87 = Rs. 12.92 Lakhs (4) Net Profit Ratio = = Net Profit 100 Turnover per year 12.92 100 128.79

= 10.03% (5) Rate of Return = = Net Profit 100 Total Investment 12.92 100 41.90

= 30.83% (6) Break-even Point Fixed Cost (per year) 1. Total Depreciation 2. Rent (In Rs.) 1,64,000 90,000

Addresses of Machinery and Equipment Suppliers 1. M/s. Sant Machine Tools Corporation 2nd Street, Kalsi Nagar, G.T. Road, Ludhiana. 2. M/s. Basant Mechanical Works (Regd.) 720-722, Industrial Area-B, Ludhiana. 3. M/s. Birdi Mechanical Works G.T. Road, Miller Ganj, Ludhiana. 4. M/s. Katbro Machine Tools G.T. Road, Miller Ganj, Ludhiana. 5. M/s. Surinder Machinery Works (Regd.) Nirankari St. No. 2, G.T. Road, Miller Ganj, Ludhiana. 6. M/s. Sargodha Machinery Corporation Near Manju Cinema, G.T. Road, Ludhiana. 7. M/s. Pal Mechanical Works Street No. 2, Partap Nagar, Ludhiana. Raw Material Suppliers Raw materials are easily available in the local market.