MEASURING TAPE (STEEL)

PRODUCT CODE : NA

QUALITY AND STANDARDS : IS: 1270-1965

PRODUCTION CAPACITY : One Lakh Per annum

MONTH AND YEAR : May, 2014

OF PREPARATION

PREPARED BY : Sh. Mohd. Shahid

Assistant Director (Mechanical)

1. INTRODUCTION
Steel measuring tapes are used for measuring length or distances. These are
handily items being encased in rolled form. As this is a small compact item, it can be
easily carried from place to place in a pocket or small bags. For sturdiness and easy
handling in outdoor activities such as on construction sites or sports fields or
factories, executives prefer to have this item in their pockets. These are available in
various lengths from 1 metre to 30 metres.

2. MARKET POTENTIAL
In view of increasing activities in construction, sports and games, new
industries etc., the demand for measuring tapes will go on increasing. There are few
units manufacturing this item. Therefore, there is good scope for new units to come
up in this activity in various parts of the country.

3. BASIS AND PRESUMPTIONS

i. For the convenience of calculation and anticipated trend, the profile has been
estimated for measuring tapes of 2 meters size only. 24000 tapes of this size
will be made annually.
ii. The unit proposes to work in single shift of 8 hours with 75% efficiency.
iii. The costs of machinery and equipment as indicated in the profile refer to a
particular make and are approximately those ruling at the time of preparation
of this report.
iv. The provisions made in respect of raw materials, personnel utilities,
overheads, etc. are approximate only.
v. The workshop shed has been taken on rental basis.
vi. The rate of interest on loan has been considered @ 16% per annum.

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4. IMPLEMENTATION SCHEDULE
Sl. No. Activity Period
1. Selection of site 1 month
2. Preparation of project report 1 month
3. Provisional registration / EM-1 1 week
4. Financial arrangement 3 months
5. Procurement of equipment 2 months
6. Installation, electrification and lighting of shed 2 weeks
7. Recruitment of Staff & Workers 1 weeks
8. Trial Run 1 or 2 day
9. Commercial Production ---
Most of the action/ activities may be undertaken simultaneously.

5. TECHNICAL ASPECTS
5.1. Process of Manufacture
The raw material required for this project that is available indigenously. The
cases are made on power press by pressing sheet. Fasteners required fixing these
cases are purchased readymade from the market, steel strips are cleaned initially and
marked by scale marking machine. The finally marked steel strips are assembled in
casing.
The tapes have the following components:
1. Measuring strip
2. Spring coil strip
3. Base for coil
4. Cover for coil
5. Casting top
6. Casing bottom
7. Fixing screw

5.2. Quality Control and Specification

There is IS: 1270 - 1965 available on this item. In view of the importance of the
product as regards accuracy of measurements, strict control and cent per cent
checking is essential. Cases and measuring strip should give attractive finish, side
by side, accuracy should also be maintained.

5.3. Production Capacity

This project envisages production of 1,00,000 Nos. of Measuring Tapes with a
sale value of Rs. 47.00 Lakhs.

5.4. Motive Power

8 HP

5.5. Energy Conservation

The unit does not require any special type of energy conservation equipment
other than proper utilization of machinery and equipment.

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Mechanical Division

6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building: Covered area of 200 Sq. mtrs. on rented basis.

6.1.1. Machinery and Equipments

Sl. No. Equipment Qty. Value (Rs.)
1. Power press, Inclinable 20tonnes capacity with 2 3,00,000
motor etc.
2. Abrasive cutting machine 1 15,000
3. Spring coiling machine 1 30,000
4. Riveting machine 1 15,000
5. Hand operated linear dividing Machine for scale 1 7,50,000
marking, table size 1260 x 175 mm with accessories
6. Stamping machine eccentric press 1 10,000
7. Work benches, vice hand tools etc. LS 30,000
8. Dies and tools 25,000
9. Testing instruments 1,50,000
10. Office furniture/equipment 75,000

Electrification and installation @ 10% of the cost of 1,12,000

machinery
Total 15,12,000
Pre-operative Expenses 50,000

Total Fixed Capital 15,62,000

6.2. Working Capital (per month)

6.2.1. Personnel
Sl. No. Designation No. Salary (Rs.) Total (Rs.)
1. Manager 1 15,000 15,000
2. Clerk/Accountant 1 12,000 12,000
3. Skilled Worker 4 10,000 40,000
4. Semi-skilled Workers 3 8,500 25,500
5. MTS 1 7,800 7,800
6. Sweeper (part time) 1 5,000 5,000
Perquisite @ 15% 15,795
Total 1,21,095

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6.2.2. Raw Material

1. Cold roll strip, 30 swg 700 kg Rs. 28,000
@Rs.40/kgs
2. Tin plate 28 swg @ Rs.65/kg 500 kg Rs. 32,500
3. Spring strip and wire @ 400 kg Rs. 16,000
Rs.40/kg
4. M.S. strip @ Rs. 30/kg 200 kg Rs. 6,000
5. Fasteners LS Rs. 10,000
6. Printing ink Rs. 5,000
7. Misc. items Rs. 10,000
Total Rs. 1,07,500

6.2.3. Utilities
Power Rs. 10,000
Water Rs. 3,000
Total Rs. 13,000

6.2.4. Other Contingent Expenses

1. Rent Rs. 15,000
2. Postage and stationery Rs. 5,000
3. Packing Rs. 4,000
4. Transport and conveyance Rs. 5,000
5. Repairs and maintenance Rs. 5,000
6. Misc. expenses Rs. 10,000
Total Rs. 44,000

6.2.5. Total Recurring Expenditure

Salaries and Wages Rs. 1,21,095
Raw Materials Rs. 1,07,500
Utilities Rs. 13,000
Other contingent expenses Rs. 44,000
Total Rs 2,85,595

6.3. Total Capital Investment

Total Fixed Capital Rs. 15,62,000
Total Working Capital (for 3 months) Rs. 8,56,785
Total Rs. 24,18,785/-

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7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
Total recurring expenditure Rs. 34,27,140
Depreciation on tools and office equip. @ 20% Rs. 26,000
Depreciation on machinery @ 10% Rs. 1,27,000
Interest on total investment @ 16% Rs. 3,87,006
Total Rs. 39,67,146
Say Rs. 39,67,000

7.2. Turnover (per annum)

By sale of 1,00,000 steel tapes @ Rs. 47 each Rs. 47,00,000

7.3. Net Profit (per annum)

= Turnover cost of production
= Rs. 47,00,000 39,67,000 = Rs. 7,33,000/-

7.4. Net Profit Ratio

Net profit per year
= X 100
Turnover per year

7,33,000
= X 100
47,00,000

= 15.6 %

7.5. Rate of Return

Net profit per year
= X 100
Total Capital Investment

7,33,000
= X 100
23,68,785

= 30.3 %

7.6. Break-even Point

Fixed Cost = Rs. 14,40,462

B.E.P.
Fixed Cost
= X 100
Fixed Cost + Net Profit

14,40,462
= X 100
14,40,462 + 7,33,000

= 66.3 %

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Name and Addresses of Machinery and Equipments Suppliers

1. Keshav Enterprises
H-141, Sector - 1
DSIDC Industrial Complex
Bawana, New Delhi 110039
Phone : 8588817160

2. Vishal Optical Works

257/A-4, Sector-4
Rohini , Delhi 110085
Phone:8377801809

3. Garlick Engineering
Garlick House 414
Senapati Bapat Marg
Lower Parel , Mumbai-13

Name and Addresses of Raw Material Suppliers

1. Hindustan Steel Ltd.
Delhi Sales office
C-62, Community Centre, New Delhi
Janak Puri , New Delhi

2. Jain Steel Corporation

700, Gali Kundaewalan
Ajmeri Gate, Delhi - 6
Phone:011-23233240

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