Supply Chain Management

Business Plan:
Manufacturing of Plastic Moulded
Automotive parts

J.P. ENTERPRISES
Acknowledgement

We have immense pleasure in successful completion of our Business Plan titled:

Manufacturing of Plastic Moulded Automotive parts.

We greatly appreciate the motivation and understanding extended for the project work, by
various molded plastic manufacturer in Nashik, who responded promptly and enthusiastically
to our queries. We are indebted to all of them, who directly or indirectly did their best to bring
improvements through their suggestions. We would also like to deeply thank Mr. of J.P
Enterprises to view the factory and the manufacturing processes thereby getting a better
understanding of the project.

We acknowledge the support, the encouragement to Prof. Dr. Suhas Rane for giving the
opportunity to enhance our knowledge about preparation of Business Plan.
Fig 2.3 (a) ........................................................................................................................... 12
Fig 2.3 (b) ........................................................................................................................... 12
Fig 2.3 (c)............................................................................................................................ 13
Fig 2.3 (d) ........................................................................................................................... 13
Fig 2.3 (e) ........................................................................................................................... 14
Fig 3.1 (a) ........................................................................................................................... 16
Fig 3.1(b) ............................................................................................................................ 16
Fig 3.1(c)............................................................................................................................. 17
Fig 3.1(d) ............................................................................................................................ 17
Fig 3.1(e) ............................................................................................................................ 18
Fig 3.1(f) ............................................................................................................................. 18
Fig 3.2 ................................................................................................................................. 19
Fig 3.3 ................................................................................................................................. 20
Fig 3.7 ................................................................................................................................. 22
Fig 3.8(a) ............................................................................................................................ 23
Fig 3.8 (b) ........................................................................................................................... 23
Fig 3.8 (c)............................................................................................................................ 23
Fig 3.8 (d) ........................................................................................................................... 24
Fig 3.8 (e) ........................................................................................................................... 24
Fig 3.8(f) ............................................................................................................................. 25
Fig 3.8 (g) ........................................................................................................................... 25
Fig 3.8(h) ............................................................................................................................ 26
Fig 3.8(i).............................................................................................................................. 26
Fig 5.1 ................................................................................................................................. 40
Table [3.6] ........................................................................................................................... 21
Table [4.1.1] ........................................................................................................................ 28
Table [4.2] ........................................................................................................................... 30
Table [4.3.1] ........................................................................................................................ 31
Table [4.3.2] ........................................................................................................................ 32
Table [4.3.3] ........................................................................................................................ 33
Table [4.3.4] ........................................................................................................................ 34
Table [4.3.5] ........................................................................................................................ 35
Table [4.3.6] ........................................................................................................................ 36
IGTC PGPBA 6
 "To become the top 15 manufacturing
unit in Plastic Molding & Auto
Electrical Parts Industry in India by
producing the highest quality products
to meet the customer requirements & at
the same time We will continuously
strive to excel with “Customer
Focused” activities throughout our
business processes with the innovation
& perfection.”

To maintain high level of consistency

in our products, helping us to provide
customers with reliable & competitive
products for “Greater level of
Customer Satisfaction”.
"We will strive to become a 200 cores
business organization by diversify &
expand our business in domestic as
well as export market by year 2018
which leads to greater organizational
profitability, higher employee morale
& above all “Greater Customer
Satisfaction”

IGTC PGPBA 7
Industry & Product Details March 2019

IGTC PGPBA 8
Industry & Product Details March 2019

Automotive Plastics Market size was over USD 22 billion in 2016 and industry expects
consumption above 20 million tons by 2024. Automotive Plastics Market will be worth $54.69
Billion by 2026 with a CAGR 7.3%.

Shifting consumer trends towards lightweight automobiles, improving vehicles aesthetics

along with increasing demand for passenger vehicles will drive automotive plastics market
demand. Rising trend towards CO2 emission along with increasing environmental concerns
has led various manufacturers to focus on lightweight and fuel-efficient vehicle manufacturing.
In 2016, the average light vehicle contains about 330 pounds of polymer composites and
accounted for over 50% of the total vehicle volume.

Automotive plastics are used for performance advancements and safety purposes in
commercial vehicles, HMV’s, modern cars and SUV’s. These lightweight products provide
fuel efficiency, scratch resistance, component integration, noise control and efficient design
molding along with vehicle weight reduction up to 10%. Increasing application scope in fuel
systems, electrical components, bonnet components, dashboards, upholstery and body panels
allowing passenger safety and convenience along with minimizing manufacturing costs will
stimulate industry growth.

Strong economic growth coupled with consumer willingness to spend on trendy and stylish
vehicles is promoting improved aesthetics in automobiles. Rapid urbanization and
industrialization along with increasing demand for passenger vehicles in India and China will
drive the automotive plastics market demand. In 2016, China produced over 25 million, Japan
with over 8 million and India with over 4 million motor vehicles production. China accounted
for about 80% of the total passenger car market share in 2016.
PVC, PU, PC, PEI, ABS and PMMA are key raw materials used for manufacturing. Crude oil
and polymer resins are essential feedstock for polymer production which further goes in
automotive plastics manufacturing. Vehicle manufacturing companies lack access to
standardized material properties, resulting in improper elastic selections for different
application along with strict government norms by EPA regarding waste generation thereby

IGTC PGPBA 9
Industry & Product Details March 2019

challenging the industry growth. High raw materials availability, low cost and ease of
manufacturing has become possible to replace expensive metal & steel counterparts which has
led to light weight and less carbon emission in vehicles.

2.1.2 Automotive Plastics Market, By Application

Automotive plastics industry demand from interior and exterior furnishings should surpass
USD 17 billion by 2024. Positive application outlook in dashboard, seating, instrumentation
panel along with fascia and bumper will drive the market growth. Increasing environmental
consciousness along with rising investments in innovations and creative aesthetics to
accentuate the overall appeal of the cars is likely to boost industry growth.
Automotive plastics industry size from chassis applications is likely to witness steady gains at
over 9% over the forecast period. It acts as a supporting part for light vehicles and provides
strength, stability, flexibility, rigidity and crash resistance through energy absorption. It ensures
low levels of vibrations, noise and harshness throughout the automobile. Rising number of
accidents and consumer emphasis on road safety is likely to drive the industry growth.

Automotive plastics are high performance plastics which are used in transport vehicles offering
minimal corrosion allowing flexibility in integrating components, versatility, comfort, safety
and longer vehicle life. Plastics are viscoelastic materials which possess characteristics such as
high strength, lightweight, elasticity, form stability along with design flexibility. They are cost-
effective, durable and easy to mold materials which is promoting its usage in exterior and
interior vehicle design. Growing preference towards high performance elastics as a substitute
to conventional metals will drive the industry growth. Increasing beneficial usage and rising
consumer demand on passenger vehicles along with the superior properties will drive the
industry growth.
Plastic offer numerous advantages when compared to their metal counterparts such as:
 Lightweight
 Cost-effective
 Durability
 Corrosion resistant
 Reusability

IGTC PGPBA 10
Industry & Product Details March 2019

Due to the benefits that plastics offer, many businesses in the injection molding industry are
now replacing metal parts with plastics. The companies that are able to identify niche markets
where metal can be replaced with plastics will be well positioned in the market for 2019.

Due to the rising energy costs combined with an increased corporate interest in sustainability,
companies are now focused on being more energy efficient. They are doing this by
incorporating plastics in their operations. Plastics are extremely durable and increase the
overall functionality of products. They also help in reducing transport weight and fuel
consumption, making them environment-friendly and cost-effective.
These trends will help plastic injection molding will continue to play a vital role in the
development of products that serve a plethora of industries.

Today, the Indian manufacturers are capable of producing high-end automotive parts which
require a lot of approvals and accreditation due to the critical nature of services. The country
has about 600 automotive parts manufacturers, of which more than 95 per cent are in the micro,
small and medium enterprise (MSME) category.

IGTC PGPBA 11
Industry & Product Details March 2019

2.3.1 Radiator Grill

Radiator grill is a net like structure which is at the front of the vehicle.
In vehicles, a grill covers an opening in the body of a vehicle to allow air to enter. Most vehicles
feature a grill at the front of the vehicle to protect the radiator and engine.

Used for : Bolero

Part Weight : 853 gms
Size of Part (L*W) : 785*280*85
M/c Tonnage : 700

Fig 2.3 (a)

2.3.2 Wheel cap

A wheel cap, wheel cover or wheel trim is a decorative disk on an automobile wheel that covers
at least a central portion of the wheel. The other function wheel caps can serve is to protect the
wheel nuts and wheel bolts from getting rusty and corroded, which can make the nuts hard to
remove someday

Used for : Bolero

Part Weight : 485 gms
Size of Part (L*W) : Dia.450*62
M/c Tonnage : 350

Fig 2.3 (b)

IGTC PGPBA 12
Industry & Product Details March 2019

2.3.3 Engine cover

The primary function of the Engine cover is to absorb heat. The cover usually help with
noise and heat. But noise is the secondary function.
Used for : Piaggio
Part Weight : 1250 gms
Size of Part (L*W) : 870*550*250
M/c Tonnage :1000

Fig 2.3 (c)

2.3.4 Mud flap

A mud flap is used to protect the vehicle, passengers, other vehicles, and pedestrians from mud
and other flying debris thrown into the air by the rotating tire. A mud flap is typically made
from a flexible material that is not easily damaged by contact with flying debris, the tire, or the
road surface. They obviously don’t protect the full underside of the vehicle, but they do well
to protect the areas around the wheels, keeping your vehicle as clean and clear of debris as
possible, which will lengthen the life of your vehicles.

Used for : 4 wheeler

Part Weight : 370 gms
Size of Part (L*W) : 604*610*7

Fig 2.3 (d)

IGTC PGPBA 13
Industry & Product Details March 2019

2.3.5 Window regulator handle

The window regulators which are located inside the door panel help raise or lower a vehicle's
windows. Manual window regulators or “roll up” regulators use handles which are manually
rotated to raise or lower the windows.

Fig 2.3 (e)

We will enter into the market as an OEM Supplier or play role as vendor for the big existing
players of the automotive plastic parts. As per our market survey there are several big companies
across India who have their vendors in Maharashtra & Gujarat and they are procuring these parts
as per their “Brand”.

We did a proper segmentation and will be positioning our Products to the targeted companies as
mentioned below first and will be supplying our parts as per their “Brand Name” after which we
will be expanding our market by introducing our own.

IGTC PGPBA 14
Process Details March 2019

IGTC PGPBA 15
Process Details March 2019

Fig 3.1 (a)

Fig 3.1(b)

IGTC PGPBA 16
Process Details March 2019

Polyurethane is used for its high gloss, durability, scratch resistance and corrosion
resistance. It gives better protection and energy conservation. We’re using this to make
Mud

Fig 3.1(c)

pH

Fig 3.1(d)

IGTC PGPBA 17
Process Details March 2019

Fig 3.1(e)

Fig 3.1(f)

iii. The material funnels down into the screw which is heated to melt the plastic.
iv. The barrel is heated at staged temperatures along its length (approx. 5 zones) to allow the
material to solidify and to move along the screw.

IGTC PGPBA 18
Process Details March 2019

v. The screw rotates which moves the material forward with the pressure and speed
determined to fill the cavity efficiently.
vi. When the material exits the nozzle at the end of the barrel it is injected into the feed
channels of the mould tool.
vii. The feed channels allow this material to flow into the open cavity of the mould tool which
forms the shape of the finished product.
viii. The mould tool is held at a constant temperature to allow ease of material flow and to also
draw out the heat from the product after injection, so, the material sets off to a solid form.
ix. After a predetermined cooling time the mould tool is opened when the moving platen
carrying the ejection half is retracted.
x. The mould tool opens with the product held in the ejection half of the tool.
xi. The ejection system then moves forward to release the product from the mould tool.
xii. The product is gathered by the worker who is assigned for machine handling.

Fig 3.2

3.3 PLC Control

A programmable logic controller is a computer, designed specifically for certain control tasks. The
function of an input module is to convert incoming signals into signals, which can be processed
by the PLC, and to pass these to the central control unit. The reverse task is performed by an output
module. This converts the PLC signal into signals suitable for the actuators. The actual processing
of the signals is effected in the central control unit in accordance with the program stored in the

IGTC PGPBA 19
Process Details March 2019

memory. This system shows the cooling time, fill and refill of raw materials, temperature for
melting and cycle time. It is installed for each machine.

Fig 3.3

IGTC PGPBA 20
Process Details March 2019

Total cost
Sr no. Machine Name Quantity Cost (INR)
(INR)

1 Ferromatik Milacron (350tn) 1 2500000 2500000

2 ESM (700tn) 1 6000000 6000000

3 Omega Servo (750 tn) 1 6000000 6000000

4 Omega Servo (350 tn) 1 2500000 2500000

5 Pneumatic gun 3 8500 25500

6 Electromech EOT Crane 1 2000000 2000000

7 Moulds 5 2000000 10000000

8 Wire Ropes 3 20000 60000

9 PLC System 4 65000 260000

10 Weighing Scale 1 75500 75500

11 Platform Trolleys 2 8500 17000

12 Pallet Jack Trolleys 2 15000 30000

12
13 Automotive Fastners (1 set=50000 960000
pcs) 80000
14 Electrician's Knife 10 94 940

IGTC PGPBA 21
Process Details March 2019

RM Granules with
RM Store Hopper dryer
suction pipe

Assembly Final Molten

product removal formation & Cooling

Packaging Dispatch FG store

Fig 3.7

IGTC PGPBA 22
Process Details March 2019

3.8 Implementing Tools and Techniques

3.8.1 GEMBA-Kaizen

Each process in the “operations” department has its set time. For example a product we
manufacture takes 1 minute to get out of the injection mold and be prepped for the next
process. This planning and scheduling ensures that the whole individual process starts and
ends in its set standard time.

Fig 3.8(a)

The 5S model adopted by us helps in prioritizing our activities and resources. The whole
operation is efficiently coordinated by each team in each activity, thereby focusing and
setting standards.
Implementing Gemba Kaisen also helps the company to reduce waste in the whole
operations process.
Each activity has its set standards so that defects and wastage reduce to the minimum.

Fig 3.8 (b) Fig 3.8 (c)

IGTC PGPBA 23
Process Details March 2019

The management has appointed a Gemba team (a worker/manager from each work-floor)
who go for a Gemba walk at the end of each week to understand whether each team has
encountered with a defect or issue and how can they or how did they rectify their errors.

3.8.2 5 Why and 1 How:

Fig 3.8 (d)

Every time there is a defect in the product or any issue faced during the assembly or line
production. A brainstorming session is placed for each issue faced all together.

Fig 3.8 (e)

The company has adopted a defect recording system so that each defect record is registered
in a paper format. This helps the supervisior to tag the defected goods and make sure that
whether the whole process has the flaw or just one in a thoasand has the flaw.
Each defect report which is filled and signed by the worker and the supervisior has to make
sure that the other products don’t turn out the same and wasteage is reduced.

IGTC PGPBA 24
Process Details March 2019

3.8.3 Poka- Yoke

Here each such machine has a door and a handle which needs to be closed or else the
machine won’t work. A bright yellow sticker is pasted at the side of the door indicating the
worker that the door needs to be closed, high voltage, high radiation and danger.
On every assembly line, belt or any equipment a yellow sticker is being pasted, so that
mistakes and accidents can be prevented and the workers can operate such heavy and risky
machines and equipment safely.

Fig 3.8(f)

3.8.4 Customer based JIT

The products are kept on separate racks in huge dispatch rooms

The company has made to stock outline, hence every time our clients order, we can supply
them on time.

Fig 3.8 (g)

Since the layout is made to stock, the company produces and stores its products which are
later dispatched to the client on a daily bases.

IGTC PGPBA 25
Process Details March 2019

3.8.5 Our own techniques

Each mould is colour coded so that each process is easy and convenient for each worker to
carry out.

Fig 3.8(h)

There is a separate line of assembly and dispatch for Mahindra & Mahindra ltd, their no.1
client. The colour code helps in differentiating each mould from the other. Each assigned
worker then transfer the mould via an EOT crane. Most of these moulds weigh over 50
tonnes.

Fig 3.8(i)

The company will also use two different types of trolleys, for transport from the production
to assembly to packaging, a pallet jack trolley and platform trolley.

IGTC PGPBA 26
Project Plan March 2019

CHAPTER 4
PROJECT PLAN

IGTC PGPBA 27
Project Plan March 2019

4.1 Project Plan

4.1.1 Year 1

Initially in the first six months, we will be buying a land and will build it up as per our requirements
where it is necessary. We will be investing in machinery, instruments, & fixtures and all the
necessary small equipment’s that will be required in order to manufacture the product.

At the end of six months when the setup is ready, we will start our manufacturing. However, during
these six months we will not be utilizing our full capacity, instead we will be focusing on strategic
development of our production for future. During this period, we will be carrying out processes
such as plastic injection moulding, testing, assembling with respective company logos and
packaging in our premises. We start of by producing parts like Radiator grill, Wheel cap, Mud
flap and Window Regulator Handle for 4 wheelers/SUV and Engine cover for 3 wheelers.

In the 1st Year, our manufacturing starts from the 1st day of seventh month and we will start
manufacturing around 32500 parts (considering every part) per month. Our production will
increase every month as per sales forecasting and so on. We will have two shifts. One shift of 9
hours.

Given below are the production details of 1st month:

Actual Expected Expected

Product Sales
production production sales
Wheel cap 10000 13500 3000000 4050000
Radiator Grill 10000 11250 7500000 8437500
Mud Flaps 6250 7500 843750 1012500
Window Regulator 6250 7500 500000 600000
Engine Cover 0 0 0 0

Note: We will gain a credit period of 30 days from our suppliers, vendors and we will give a
credit period of 30 days to our customers.

IGTC PGPBA 28
Project Plan March 2019

4.1.2 Year 1

(First Six Months): Only set up, no production.

(Next Six Months): Our expected Sales will be as follows:
Sales: Rs 71062500
At the end of 1st Year we had Sales Turnover = Rs 71062500

4.1.3 Year II

In 2nd Year we will be utilizing our 75% capacity.

Sales Turnover: Rs 284250000

4.1.4 Year III

In 3rd Year we will be utilizing our 90% capacity. We are also introducing a new product engine
cover for a new segment which is for 3 wheelers. We will have a separate machine and inventories
for this.
Sales Turnover: 386731800

4.1.5 Year IV

In the 4th Year we will be utilizing 100% capacity for existing products and the new product will
be running in 80% capacity.
Sales Turnover: Rs. 408537138

4.1.6 Year V

In 5th Year both our segments will be running in 100% capacity.

Sales Turnover: Rs 469627741

IGTC PGPBA 29
Project Plan March 2019

4.2 Quality & Quantity of Manpower

Particulars Year I Year II Year III Year IV Year V

Administration S Semi US S Semi US S Semi US S Semi US S Semi US
Quality Control 1 1 1 1 1
Accountant 1 1 1 1 1
HR 2 2 2 2 2
Purchase Manager 1 1 1 2 2
Sales Manager 1 1 1 2 2
Store Keeper 1 1 1 1 1
Logistics and Invoicing 2 2 2 2 2
Managing Director 1 1 1 1 1

Total 10 0 0 10 0 0 10 0 0 12 0 0 12 0 0
Grand Total 10 10 10 12 12

S = Skilled Employee
US = Unskilled Employee
Year I Year II Year III Year IV Year V
Machine S Semi US S Semi US S Semi US S Semi US S Semi US
Ferromatik Milacron (350tn) 2 4 4 4 4
Ferromatik Milacron (700tn) 2 4 4 4 4
Omega Servo (750 tn) 2 4 4 4 4
Omega Servo (350 tn) 2 4 4 4 4
Ferromatik Milacron (350tn) 4 4 4
Ferromatik Milacron (350tn) 4 4 4
Electromech EOT Crane operator 1 2 2 2 2
Supervisor 2 2 2 2 2
Assembly 4 3 5 4 3 5 6 5 7 6 5 7 6 5 7
Material Handling 5 5 7 7 7
Misc workers 5 5 6 6 7

Total 15 3 24 24 3 15 34 5 20 34 5 20 34 5 21
Grand Total 42 42 59 59 60

Headcount 52 52 69 71 72

IGTC PGPBA 30
Project Plan March 2019

Year One Year Two Year Three Year Four Year Five
Product Type 1st Half 2nd Half Total
Parts for Cars/SUVs:
Wheel Cap (units per day) 0 400 800 880 968 1065
No. of wheel caps (per annum) 60000 60000 240000 264000 290400 319440
Price per piece 300 300 324 350 378
Sales 18000000 18000000 72000000 85536000 101616768 120720720

Radiator Grill (B+W) [units per day] 0 400 800 832 865 900
No. of radiator grills (per annum) 60000 60000 240000 249600 259584 269967
Price per piece 750 750 810 875 945
Sales 45000000 45000000 180000000 202176000 227084083.2 255060842

Mud Flaps (units per day) 0 250 500 530 562 596
No. of mud flaps (per annum) 37500 37500 150000 159000 168540 178652
Price per piece 135 135 146 157 170
Sales 5062500 5062500 20250000 23182200 26538983 30381827

Window Regulator (units per day) 0 250 500 530 562 596
No. of window regulators (per annum) 37500 37500 150000 159000 168540 178652
Price per piece 80 80 86 93 101
Sales 3000000 3000000 12000000 13737600 15726804 18004046

3-Wheeler parts
Engine Cover (units per day) 0 0 0 0 450 495 545
No. of engine covers (per annum) 135000 148500 163350
Price per piece 230 253 278
Sales 31050000 37570500 45460305

IGTC PGPBA 31
Project Plan March 2019

Particular Year One Year Two Year Three Year Four Year Five
Per kg (Rs) Per tonne (Rs) Per kg (Rs) Per tonne (Rs) Per kg (Rs) Per tonne (Rs) Per kg (Rs) Per tonne (Rs) Per kg (Rs) Per tonne (Rs)
Purchases: Acrylic (PMMA) 20 8000 20.4 8160 21 8323.2 21.2 8490 22 8659
ABS 48 19200 49 19776 50 20171.52 51.9 20777 53 21400
Polyurethane (PU) 70 28000 71.4 28560 73 29131.2 74 29714 76 30308
PVC 40 16000 40.8 16320 42 16646.4 42 16979 43 17319
Polycarbonate 150 60000 153 61200 156 62424 159 63672 162 64946
Polyetherimide (PEI) 700 280000 714 285600 728 291312 743 297138 758 303081

Annual consumption (300 tonnes) - 61680000 125884800 128402496 131031060.5 133714011.7

Inventory holding period (Days) 30 Days 30 Days 30 Days 30 Days 30 Days

Opening Inventory (in tonnes) 150 tonnes 300 tonnes 300 tonnes 300 tonnes 300 tonnes
Closing Inventory 300 tonnes 300 tonnes 300 tonnes 300 tonnes 300 tonnes

IGTC PGPBA 32
Project Plan March 2019

Year One Year Two Year Three Year Four Year Five
1st half 2nd half
(6 (next 6
Machine months) months) Total
Consumption/hr (in
kW) 25.1
Ferromatik Milacron (350tn) 0 2033.1 2033.1
Cost per unit of
(wheel cap)
power (in Rs) 9 4066 4148 4230 4315
Annual Consumption 0 304965 304965 1219860 1244257 1269142 1294525
Consumption/hr (in
kW) 133.1
0 10781.1 10781.1
ESM (700tn) (radiator grill) Cost per unit of
power 9 21562 21993 22433 22882
Annual Consumption 0 1617165 1617165 6468660 6598033 6729994 6864594
Consumption/hr (in
kW) 54.4
Omega Servo (910 tn) 0 4406.4 4406.4
Cost per unit of
(engine cover)
power 9 8813 8989 9169 9352
Annual Consumption 0 660960 660960 2643840 2696717 2750651 2805664
Consumption/hr (in
kW) 25.1
Omega Servo (350 tn) (mud 0 2033.1 2033.1
Cost per unit of
flap and regulator)
power 9 4066 4148 4230 4315
Annual Consumption 0 304965 304965 1219860 1244257 1269142 1294525

Total Annual Consumption (in Rs) 2888055 11552220 11783264 12018930 12259308

IGTC PGPBA 33
Project Plan March 2019

Particulars Year One Year Two Year Three Year Four Year Five

Income
Sales (in Rs) 71062500 284250000 386731800 408537138 469627741
Sales (in units) 195000 780000 966600 1035564 1110062

1. Variable cost

Raw material consumed 61680000 125884800 128402496 131031060 133714012

Wages(From Wages table) 5160000 5160000 10705200 11617320 12826572

Lubricants (ltr) 26000 26000 27040 28122 29246

Electricity (from Power
Consumption table) 3188055 12152220 12383264 12618930 12859308
Maintenance 120000 120000 120000 120000 120000
Stationary 55000 60000 75000 80000 100000
Telephone 48000 52000 54000 54000 56000
Mould release sprays 225000 450000 450000 450000 450000
Miscellaneous 200000 300000 500000 600000 600000

Total Variable Cost 70702055 144205020 152717000.4 156599432 160755138

CONTRIBUTION 360445 140044980 234014799.6 251937706 308872602

2. Fixed Cost
Salary (From Wages table) 4920000 7392000 12487200 24277440 49896528
Rent 10,000,000 11,000,000 12,100,000 13,310,000 14,641,000
Depreciation 6095028 6095028 6095028 6095028 6095028
License fee 2500000 3250000 4225000 5492500 7140250
Insurance 1000000 1200000 1440000 1728000 2073600
Technical consulting fee 100000 300000 400000 400000 400000
Incorporation expenses 20000 30000 50000 60000 65000
Auditor's fee

Total FC 24635028 29267028 36797228 51362968 80311406

Profit -24,274,583 110,777,952 197,217,572 200,574,738 228,561,196

IGTC PGPBA 34
Project Plan March 2019

Wages Year One Year Two Year ThreeYear Four Year Five
A. Worker
Station 135000 135000 429000 471900 519090
Skilled:
Assembly 180000 180000 297000 326700 359370
Semi-Skilled: Material Handling 65000 65000 100100 110110 121121
Unskilled: Misc Workers 50000 50000 66000 59400 69300

Monthly Total 430000 430000 892100 968110 1068881

Annual Total 5160000 5160000 10705200 11617320 12826572

Salary

B. Employee Quality Control 40000 44000 48400 53240 58564

Accountant 40000 44000 48400 53240 58564
HR 60000 132000 290400 638880 1405536
Purchase Manager 30000 33000 36300 79860 175692
Sales Manager 30000 33000 36300 79860 175692
Supervisor 50000 110000 242000 532400 1171280
Store Keeper 20000 22000 24200 26620 29282
Logistics & Invoicing 40000 88000 193600 425920 937024
Managing Director 100000 110000 121000 133100 146410

Monthly Total 410000 616000 1040600 2023120 4158044

Annual Total 4920000 7392000 12487200 24277440 49896528

Grand Monthly Total 840,000 1,046,000 1,932,700 2,991,230 5,226,925

Grand Annual Total 10080000 12552000 23192400 35894760 62723100

IGTC PGPBA 35
Project Plan March 2019

Year One Year Two Year Three Year Four Year Five
Sr. No Machine Name Qty Cost (INR) Total (INR)
1 Ferromatik Milacron (350tn) 1 2500000 2500000
2 ESM (700tn) 1 6000000 6000000
3 Omega Servo (750 tn) 1 6000000 6000000
4 Omega Servo (350 tn) 1 2500000 2500000
5 Electromech EOT Crane 1 2000000 450000
6 Ferromatik Milacron (350tn) 1 2500000
7 Ferromatik Milacron (350tn) 1 2500000
8 Moulds 5 3000000 10000000
9 Wire Ropes 3 20000 60000
10 PLC System 4 65000 260000
2 8500 17000
11 Trolleys : Platform & Pallete 2 30000 60000
Weighing Scales (2000-2500kgs
12 capacity) 1 75500 75500
Compressor 1 30000 30000
13 Fans 10 2000 20000
14 Air Conditioners 6 30000 180000
Furniture & Fixtures 4 100000 400000
15 MCB 2 38000 76000
16 Captive bolt pistol 3 8500 25500
Generator (diesel - 40kVa) 1 200000 200000
17 Hopper Container 4 35000 140000
18 4-legged chain slings 2 7500 15000
Suction pipe 4 1300 5200
19 Cutter sets 10 94 940
20 Automotive fastener set 12 80000 960000

Total Investments 29014200 0 5000000 0 0

IGTC PGPBA 36
Project Plan March 2019

No. of wheel caps (per annum) 60,000 240,000 264,000 290,400 319,440
No. of radiator grills (per annum) 60,000 240,000 249,600 259,584 269,967
No. of engine covers (per annum) 0 0 135,000 148,500 163,350
No. of mud flaps (per annum) 37,500 150,000 159,000 168,540 178,652
No. of window regulators (per annum) 37,500 150,000 159,000 168,540 178,652

Contribution 360,445 140,044,980 234,014,800 251,937,706 308,872,602

Fixed Cost 24,635,028 29,267,028 36,797,228 51,362,968 80,311,406

Break Even (in terms of units)

Break Even (in terms of Rs) -24,274,583 110,777,952 197,217,572 200,574,738 228,561,196

IGTC PGPBA 37
Location and Layout March 2019

IGTC PGPBA 38
Location and Layout March 2019

IGTC PGPBA 39
Location and Layout March 2019

Fig 5.1

IGTC PGPBA 40