PROJECT REPORT
On
Manufacturing of Pump Components
Submitted
As part of requirement of The Training
under
New Entrepreneur cum-Enterprise Development Scheme
Government of Tamilnadu
Conducted by
Entrepreneurship Development Institute,Guindy,Chennai
Prepared by
Name : N. Santhosh Kumar
Address: 7/22, Jeeva street, Urumandampalayam, GN Mills post,
Coimbatore-29
Mobile: 7502384061
Email:[email protected]
Training at Codissia, Coimbatore
Financed by TIIC, Nanjappa Road, Coimbatore.
PHOTO
TABLE OF CONTENT
Sl. No. Description
1. Executive summary
2. Business plan
3. Market survey
4. Machinery / equipment catalogue & invoice/quotations
5. Qualification and experience certificates
6. Part 1 registration under MSME
EXCUTIVE SUMMARY
INTRODUCTION:
In today’s market competition demand plays vital role. Even though many
companies have formed year by year the competition goes higher but still there is
demand for right product from customer’s side. In CNC machining works the
customers demand is in terms of quality and delivery. As from my experience in
the Engineering field for years I found it’s the right business to do. To fulfill their
requirement in terms of superior quality and delivery at right time is the ultimate
aim of our business. In current scenario this aspect is very challenging. And there
is huge scope in the Pumps Industries, Textile Machines Spares, Valves and Heavy
Engineering market.
ASK ENGINEERING is the company which comes across with plan to fulfill
customer’s needs and demand through development in ourselves, society and
nation. This project aims at studying about detailed outline of a new business
proposal.
LAND AND BUILDING:
The Unit is proposed to start the industry in the area of
NANJEKOVENDENPUDUR in 1800 sq.ft with 35 HP.
PLANT AND MACHINERY:
The following table refers the plant and machinery details,
S.NO Description TYPE CAPACITY POWER Qty
1. CNC TURNING
CENTRE
SUPPER JOBBER 200 MM CHUCK 15KVA 2
2. CONSUL STABLIZER INDUSTRIAL 430 – 460 V 3 PHASE 1
3. AIR COMPRESSOR RECIPROCATING 7.5 HP 5.5 KW 1
MAN POWER: The following table refers the Manpower details
TRANSPORT:
Since the proposed unit is within the corporation limit of Coimbatore
transport facilities are easily available.
WATER:
Water is required to mix with cutting oil for machining purpose. Purified RO
drinking water should be purchased for drinking purposes.
MATERIALS:
The main materials used are Coolent oils, Cutting tools, Cotton wastes,
Lubrication oils, Measuring Instruments, Jigs and fixtures are available in local
market.
SNO PARTICULARS QUANTITY
1 Machine Operators 4
3 Quality Inspectors 1
TOTAL 5
POLLUTION:
Since the machines are computer based and pollution does not arise.
INTRODUCTION OF PROPRIETOR:
Proprietor N. Santhosh Kumar is a B.com (CA) graduate with hands on
experience in industrial engineering for 4 years. Holds good expereince in
business development, planning and execution, administration, marketing.
Playing a key role in an organization managing, development & end-to-end
operations. Having a good relationships amoung the companies around
coimbatore.
The better part of me is attitude, comprising of attributes like striving for
excellence, quick learning, multi tasking, communication skills and above all a
huge appetite for being the best.
BIO DATA:
EDUCATION
B.com (CA)
SNS Rajalakashmi College of Arts and Science, Coimbatore. (Barathiar University)
Year of Completion – 2009
EXPERIENCE
Operations and supervising
Marks Engineering , Coimbatore
Year of Experience – 4 years
LANGUAGE PROFICIENCY: Read : English and Tamil
Write : English and Tamil
Speak : English, Tamil.
PERSONAL DETAILS:
Date of Birth : 06.10.1983
Marital Status : Single
Phone : 7502384061
Permanent Address : 7/22, Jeeva street, Urumandampalayam, GN Mills
post, Coimbatore-29.
MATERIALS AND JOB ORDER PROVIDER:
Texmo pumps and Aquapump, Coimbatore who are the leading manufacturers of pumps and motors products who are one of the major supplier to our country and worldwide.
MARKET SURVEY ON
DEMAND OF CNC TURNING CENTER
BASIC QUESTIONS:
1. Do you think that there is a demand for the turning center in Coimbatore?
A. Yes B. No. C. Moderate demand D. No idea.
2. What problem do you face often with the CNC job work?
A. Quality issues. B. Punctuality issues. C. Price issues.
D. Other.
3. What is the main problem that has been faced by the CNC turning center nowadays?
A. Power problem. B. Labor problem. C. Order problem. D. Payment
problems.
4. Will there be a future demand for the CNC?
A. Yes. B. No. C. Moderate. D. More demand.
5. Which CNC machine do you think it is economic and good in performance in India?
A. Ace micromatic. B. Lakshmi.
6. Is there any difficulty in getting orders for CNC turning center nowadays?
A. No. B. Yes. C. Very easy. D. Very difficult.
7. Are you receiving continuous orders for your machines?
A. Yes B. No. C. Occasional orders. D. High orders.
8. Do you having capacity of resources to full fill their requirement?
A. Low level C. Medium level. D. Higher level.
9. Is reference an important factor in receiving orders initially?
A. Yes. B. No.
10. What are the major expenditure you are spending for?
A. Power. B. Labor. C. Tools and consumables. D. Rent.
INTRODUCTION
OVERVIEW:
An important indicator of success for any business is the extent to which it has a high performing
management team. This evaluation process is intended to know the current demand of the CNC
turning center in Coimbatore at present time.
The information has been gathered through surveys with the intension of knowing the CNC machine
demand. At the same time the information has been gathered from the expert in the CNC and from
the companies in Coimbatore.
Using the overall average rating, we prepared a graph sheet below to know the feedback easily. I
discussed around 10 companies in Coimbatore and gather information and prepared the graph sheet.
As I approached these companies, some companies have refused and some gave the information
which we cannot relay. So we have not included those companies which have not co-operate with
me.
1. Do you think that there is a demand for the turning center in Coimbatore?
A. Yes B. No. C. Moderate demand D. No idea.
When we ask that there is a demand for the CNC turning center in Coimbatore nowadays, out of 10, 7
companies answered yes, 2 companies answered Moderate demand and 1 company answered no.
2. What problem do you face often with the CNC job work?
A. Quality issues. B. Punctuality issues. C. Price issues.
D. Other.
When I ask what problems that the company face often in CNC job work, out of 10, 4 companies
answered Quality issues, 5 companies answered Price issues, and 1 company answered that the
punctuality is their problem.
3. What is the main problem that has been faced by the CNC turning center nowadays?
A. Power problem. B. Labor problem. C. Order problem. D. Payment
problems.
When I ask the companies that what are all the problems that they are facing, 4 companies told that
the power problem is the main problem that they are facing, 4 companies said labor is becoming
scarce, 1 said rent has been his problem and 1 said payment problems.
4. Will there be a future demand for the CNC?
A. Yes. B. No. C. Moderate. D. More demand.
When I ask the companies that there is a demand for the CNC turning center in future, 4 companies
said Yes, 1 company said No, 3 companies said Moderate, and 2 companies said more demand.
5. Which CNC turning machine do you think it is economic and good in performance in India?
A. Ace Micromatic. B. Jothi. Lakshmi. C. Doosan.
D. Hurco
When I ask the companies about which CNC is the best in India for performance and economy, 6
companies said Ace Micromatic, 1 company said Jothi, 2 companies said Doosan, and 1 company said
Hurco.
6. Is there any difficulty in getting orders for CNC turning center nowadays?
A. No. B. Yes. C. Very easy. D. Very difficult.
When I ask the companies that there is a difficulty getting Job order for CNC turning center, 4
companies said No, 1 company said Yes, 4 companies said very easy, and 1 companies said very
difficult.
7. Are you receiving continuous orders for your machines?
A. Yes B. No. C. Occasional orders. D. High orders.
When I questioned the companies regarding the orders for their machinery 5 companies said Yes, 1
company said No, 2 companies said Occasional orders, and 2 companies said High orders.
8. Do you having capacity of resources to full fill their requirement?
A. Low level C. Medium level. D. Higher level.
When I ask the companies that they have the capacity to fulfill the requirement of their customer, 2
companies said they have low level, 5 companies said they have medium level and 3 companies have
higher level.
9. Is reference an important factor in receiving orders initially?
A. Yes. B. No.
When we ask the companies that reference is important factor in receiving orders 7 companies said
yes and 3 companies said no.
10. What are the major expenditure you are spending for?
A. Power. B. Labor. C. Tools and consumables. D. Rent.
When I ask to the companies regarding the major expenditure, 4 companies said Power, 2 companies
said Labor, 2 companies said Tools and consumables and 2 companies said Rent.
Conclusion:
According to the survey results we have concluded that Coimbatore is the best place for CNC based
business startups.
Application Form - Business Details
Name of Business Enterprises : ASK ENGINEERING
Office Address
Door No 35/A
Street VIVEKANANDA STREET
Area NANJEKOVENDEN PUDUR
City COIMBATORE
District Coimbatore
State TamilNadu
Pincode 641029
Factory Address
Factory Door No 35/A
Factory Street VIVEKANANDA STREET
Factory Area NANJEKOVENDEN PUDUR
Factory City COIMBATORE
Factory District Coimbatore
Factory State TamilNadu
Factory Pincode 641029
Type of Industry Manufacturing
EM no 330121260735E
Product Name CNC TURNING CENTER
Consitution Proprietary
No of key persons involved 1
Name of Business Enterprises : ASK ENGINEERING
Key Person 1
Title Selvan
Name SANTHOSH KUMAR
Father/Husband Name NANJAKUTTY
Age 30
Address 7/22
JEEVA STREET Personal Finance
URUMANDAMPALAYAM
Permanent Account
Number FILPS5822J
Telephone number
Do you have Bank
account Yes
Mobile number 7502384061 Bank name Axis Bank Ltd
Educational background Bcom Branch SARKARSAMAKULAM
Whether ration card
available Yes Bank address
DOOR NO.12/55
SATHYAMANGALAM
ROAD
SARKARSAMAKULAM
Whether voter identity
card available Yes Account number 912010060906251
Social status MBC Account type Savings Bank
Employment of spouse Not employed IFSC code UTIB0001294
Qualification of spouse XII Std Credit card No
Networth Statement
Assets (Rs.Lakhs)
Immovable Properties( Including Land and Building
) 30.00
Investment in Business Capital 2.10
Deposits with Banks/institutions 0.00
Gsecs/Bonds/NSC/NSS 0.00
Shares/Debentures ( Market Value ) 0.00
Life Insurance Policies ( Surrender Value ) 0.00
Value of Vehicles ( Market Value ) 0.30
Other Assets ( Incl. Jewellery ) 0.00
Total Assets 32.40
Liabilities 0.00
Loans Availed from Banks (Total Outstanding) 0.00
Other Liabilities 0.00
Total Liabilities 0.00
Networth 32.40
Property Location URUMANDAMPALAYAM, G.N. MILLS POST,
COIMBATORE
Name of Business Enterprises : ASK ENGINEERING
Project Cost (Rs.lakhs)
Land 0.00
Building 0.00
Plant and Machinery
Imported 0.00
Indigenous 40.00
Vehicles 0.00
Furniture and Fittings 0.00
Computers and office automation 0.00
Testing equipment 0.90
Other fixed assets 0.00
Erection/installation charges 0.00
Pre-operative expenses 0.00
Provision for contingencies 0.00
Working capital margin 0.59
Total Cost 41.49
Means of finance
Owners contribution 5.00%
Owners contribution 2.07
Loan from bank/other institutions 39.42
Total 41.49
Name of Business Enterprises : ASK ENGINEERING
Fullfillment of statutory requirements
Requirements Status
1.Approval from Local Authority / body Not Applicable
2.Approval for Building Plan Obtained
3.Approval from Inspector of Factories Not Applicable
4.Approval from Electricity Board Obtained
5.Have you obtained Import and Export Code? Not Applicable
6.Sales Tax Registration To be Obtained
7.Service Tax Registration To be Obtained
8.Pollution Control Board Clearence Not Applicable
9.Registeration for Partnership/Company/Co-operative Society Not Applicable
Name of Business Enterprises : ASK ENGINEERING
Personal strengths in the area of business
I have 4 years of relevant experience. I have handled production in my previous assignment.
None of my family members have experience in this business. The raw material required for the
business are . Raw materials are available in the local market. The suppliers of the raw
materials are TEXMO AND AQUASUB. The processes involved in manufacturing the final
product are WE MAKE THE COMPONENT COMPLETE ACCORDING TO THE
DIAGRAM PROVIDED BY THE SUPPLIERS USING THE CNC TURNING CENTER.. For
this business skilled and semiskilled manpower are required. I am confident of having
necessary manpower for the business. power requirement is 35 horse power per day. I do not
have any backup. I require 100 liters of water. I have adequate facility to draw water. I have
approval for the land and building . I conducted survey and based on the findings only and I am
trying to get into this business.The competitors in my district are SHANRAG MACHINE
TOOLS, MARKS ENGINEERING and G-TEC. I will take 1 month to deliver the first order. I
will get repeat orders from the following companies: TEXMO and AQUASUB. We expect an
order size to the extent of Rs. 3 lakhs from them. The business potential for this product is
growing at higher rate in India and growing at higher rate in exports.
Name of Business Enterprises : ASK ENGINEERING
Projected Profit & Loss Statement (Rs.Lakhs)
Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019
Sales 14.35 22.96 25.83 27.26 27.26
Other Income 0.00 0.00 0.00 0.00 0.00
Closing Stock 3.59 5.74 6.46 6.82 6.82
Total Income 17.94 28.70 32.29 34.08 34.08
Raw Material Consumed 0.00 0.00 0.00 0.00 0.00
Wages 1.86 2.98 3.35 3.53 3.53
Power & Fuel 0.60 0.96 1.08 1.14 1.14
Rent 0.75 1.20 1.35 1.42 1.42
Other Manufacturing Costs 0.00 0.00 0.00 0.00 0.00
Administration Expenses 0.00 0.00 0.00 0.00 0.00
Selling & Distribution Expenses 0.00 0.00 0.00 0.00 0.00
Excise Duty 0.50 0.80 0.90 0.95 0.95
Depreciation 4.00 3.60 3.24 2.92 2.62
Finance Charges 0.00 0.00 0.00 0.00 0.00
Total Expenditure 7.71 9.54 9.92 9.96 9.66
Profit & Loss 10.23 19.16 22.37 24.12 24.42
Name of Business Enterprises : ASK ENGINEERING
Projected Balance Sheet (Rs.Lakhs)
Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019
Capital 2.07 2.07 2.07 2.07 2.07
Reserves & Surplus 10.23 29.39 51.76 75.88 100.30
Loan from Bank 31.54 23.66 15.78 7.90 0.02
Sundry Creditors 0.00 0.00 0.00 0.00 0.00
Total Liabilities 43.84 55.12 69.61 85.85 102.39
Fixed Assets 36.90 33.30 30.06 27.14 24.52
Sundry Debtors 2.39 3.83 4.31 4.54 4.54
Stock 3.59 5.74 6.46 6.82 6.82
Loans & Advances 0.00 0.00 0.00 0.00 0.00
Cash & Bank Balance 0.96 12.25 28.78 47.35 66.51
Total Assets 43.84 55.12 69.61 85.85 102.39
Name of Business Enterprises : ASK ENGINEERING
Projected Cash Flow Statement
Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019
Net Profit as per Tax 10.23 19.16 22.37 24.12 24.42
Add: Depreciation 4.00 3.60 3.24 2.92 2.62
Add: Capital Contribution 2.07 0.00 0.00 0.00 0.00
Add: Loan from Bank 39.42 0.00 0.00 0.00 0.00
Add: Increase in Sundry Creditors 0.00 0.00 0.00 0.00 0.00
Add: Decrease in Sundry Debtors 0.00 0.00 0.00 0.00 0.00
Add: Decrease in Stock 0.00 0.00 0.00 0.00 0.00
Total Inflow 55.72 22.76 25.61 27.04 27.04
Less: Purchase of Fixed Assets 40.90 0.00 0.00 0.00 0.00
Less: Repayment on Loan to Bank 7.88 7.88 7.88 7.88 7.88
Less: Increase in Sundry Debtors 2.39 1.44 0.48 0.23 0.00
Less: Decrease in Sundry Creditors 0.00 0.00 0.00 0.00 0.00
Less: Increase in Stock 3.59 2.15 0.72 0.36 0.00
Less: Loans & Advances 0.00 0.00 0.00 0.00 0.00
Total Outflow 54.76 11.47 9.08 8.47 7.88
Opening Balance 0.00 0.96 12.25 28.78 47.35
Surplus/Deficit 0.96 11.29 16.53 18.57 19.16
Closing Balance 0.96 12.25 28.78 47.35 66.51
Name of Business Enterprises : ASK ENGINEERING
Ratios
Usual Norms Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019
Current Ratio >1.33 0.00 0.00 0.00 0.00 0.00
Debt-Equity Ratio <2.00 2.56 0.75 0.29 0.10 0.00
Debt Service Coverage Ratio >1.5 1.30 2.43 2.84 3.06 3.10
TOL / TNW <3.00 2.56 0.75 0.29 0.10 0.00
Interest Coverage Ratio >2.00 0.00 0.00 0.00 0.00 0.00
Net Profit Margin(%) >5.00 71.29 83.45 86.60 88.48 89.58
Name of Business Enterprises : ASK ENGINEERING
Interest & Loan Repayment Schedule (Rs.Lakhs)
Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019
Opening Balance 0.00 31.54 23.66 15.78 7.90
Receipt 39.42 0.00 0.00 0.00 0.00
Total 39.42 31.54 23.66 15.78 7.90
Repay 7.88 7.88 7.88 7.88 7.88
Closing Balance 31.54 23.66 15.78 7.90 0.02
Average 15.77 27.60 19.72 11.84 3.96
Interest 0.00 0.00 0.00 0.00 0.00
Name of Business Enterprises : ASK ENGINEERING
Working Capital (Rs.Lakhs)
Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019
Stock 3.59 5.74 6.46 6.82 6.82
Sundry Debtors 2.39 3.83 4.31 4.54 4.54
Loans & Advances 0.00 0.00 0.00 0.00 0.00
Cash & Bank Balance 0.96 12.25 28.78 47.35 66.51
Total Current Assets 6.94 21.82 39.55 58.71 77.87
Sundry Creditors 0.00 0.00 0.00 0.00 0.00
Salaries & Wages 0.16 0.25 0.28 0.29 0.29
Power & Fuel 0.05 0.08 0.09 0.10 0.10
Working capital 6.73 21.49 39.18 58.32 77.48