LT POWER CAPACITORS
PRODUCT :
QUALITY AND STANDARDS :
PRODUCTION CAPACITY :
Value
MONTH AND YEAR :
OF PREPARATION
PREPARED BY :
- INTRODUCTION
Power capacitor is basically an electrical device used for improving power factor of the electrical power system when the load is inductive. Most of the industries use induction motors, welding transformers and other machines with wire wound components which results Low power factor in the neigh boring distribution line. This causes big KVAR loss and wastage of energy. Therefore Improvement of power factor is considered to be one of the important measures of energy conservation. Use of power capacitors improves the power factor of the line to which they are connected and thereby improving power factor for neigh boring industry also. In certain applications, capacitors are used to store energy also, but with Limited use.
- MARKET POTENTIAL
Almost all the Electricity authorities have now made mandatory to install L.T. Power Capacitors in the case of all induction industrial Loads. This implies for all induction motors, transformers and write wound equipment-L T Power capacitors is a must. Apart from industrial use, Due to massive rural electrification and use of electric pumps in irrigation the motor Load is increasing day by day. Hence, demand for power capacitors is increasing. At present, there are a number of units manufacturing L T power capacitors. However, as this item is ever increasing, there is scope for more units to come up.
3 . BASIS AND PRESUMPTIONS
- The basis for calculation of Production Capacity has been taken on Single
Shift basis on 75% efficiency.
- The expected capacity utilisation on Single Shift basis for 300 days a Year
During first Year and Second Year of operation the capacity utilisation is 60%
And 80% respectively. The unit is expected to achieve full capacity utilisation
From 3rd year onward.
iii. The Salaries & Wages, Cost of Raw Materials, Utilities, Cost of Land and
Rents etc are based on prevailing rates in 2014-2015 in and around NCT OF
Delhi. These cost factors are likely to vary with time and location.
iv . Interest of term loan and working capital loan has taken at the rate of
13% on an average. This rate may vary depending upon the policy of the
Financial Institution/ agencies from time to time.
- The cost of Machinery and Equipment refer to a particular make/ model and
The prices are approximate prevailing in 2014-2015.
- The breakeven point percentage indicated is of full capacity utilisation.
vii. The project point percentage cost etc., whenever required could be considered
under pre-operative expenses.
viii The essential production machinery and test equipment required for the
project have been indicated. The unit may also utilise common test facilities
available at Electronics Test & Development Centre (ETDCs), Electronics
Regional Test Laboratories (ERTLs), MSME Testing Centres.
- IMPLEMENTATION SCHEDULE
The major activities in the implementation of the project have been listed and the average time for implementation of the project is estimated at 12 months:
| SI.
NO. |
Activity | Period (in months)
(Suggestive) |
| 1. | Preparation of Project Report | 1 |
| 2. | Registration and other formalities | 1 |
| 3. | Sanction of Loan by financial institutions | 3 |
| 4. | Plant & Machinery
i. Placement of orders ii. Procurement iii. Power connection /Electrification iv. Installation / Erection of machinery / Test Equipment |
1 2 2 2 |
| 5. | Procurement of raw material | 2 |
| 6. | Recruitment of Technical Personnel etc. | 2 |
| 7. | Trial production | 11 |
| 8. | Commercial production | 12 |
Note:
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 ASPECTS
- Process of Manufacturing
The capacitor is manufactured using metalized polypropylene film or MPP film. The metal coating consists of zinc and aluminium alloy. This film is wound using a film-winding machine to manufacture the basic condenser unit. Numbers of such units (rolls of MPP film) are stacked together. The number. Of rolls in a stack depends upon the voltage and capacitance/ KVAR required. The stack of the MPP film rolls is pressed together with M.S. plate. The two sides of the stack having the ends of the individual rolls are sprayed using tin lead mixture of proper proportion for joining the layers of MPP film. Connecting leads are soldered to the sprayed ends of the stack. The stack assembly is housed in a can made of M.S. and the leads are connected to porcelain bushing terminals provided on the top of the can. The can is fabricated form MS plate separately and is degreased before using the stack assembly. After housing the stack assembly, the can is put under vacuum at a high temperature in a vacuum impregnation plant. Subsequently, PXE oil (synthetic Insulating oil ) is filled into cans. Then sealed and painted. The capacitor is then tested as per the relevant standard.
- Quality Control and Standards
The relevant specification of Bureau of Indian standard governing the power capacitors is IS13340-1993,IS 13340: PART 1 & part 2-2012. The unit shall have in house testing facility for conducting the routine tests.
- Production Capacity
L T Power Capacitors of various rating:
Quantity : 21,000 KVAR
Value : Rs. 2,68,80,000/-
- Motive Power 20 KW
- Pollution Control
The Government accords utmost importance to control environmental pollution. The small-scale entrepreneurs should have an environmental friendly attitude and adopt pollution control measures by process modification and technology substitution.
India having acceded to the Montreal Protocol in September 1992, the production and use of Ozone Depleting Substances (ODS) like Chloral flour Carbon (CFCs), Carbon Tetrachloride, Halos and Methyl Chloroform etc, need to be phased out immediately with alternative Chemicals/Solvents. A notification for detailed rules to regulate ODS phase out under the environment protection Act 1986, have been put in place with effect from 19th July 2000.
The following steps may help control pollution in Electronics Industry wherever applicable-
In Electronics Industry, fumes and gases are released during Hand Soldering /Wave soldering/Wave Soldering/ Dip Soldering, which are harmful to people as well as environment and the end products. Alternate technologies may be used to phase out the existing polluting Numerous new fluxes have been developed containing 2-10% solids as opposed to the traditional 15-35% solids.
- Electronics Industry uses CFCs, Carbon Tetrachloride and Methyl Chloroform for cleaning of printed circuit board after assembly to remove flux residues left after soldering and various kind of foams for packing.
Many alternative solvents could replace CFC-113 and Methyl Chloroform in Electronics cleaning . Other Chlorinated solvents such as Trichloroethylene, per-Chloroethylene and methylene Chloride have been used as effective cleaners in Electronics Industry For many years. Other organic solvents such as Ketenes and Alcohol’s are effective in removing both solder fluxes and many polar contaminants.
- Energy Conservation
With the growing energy demand and shortage coupled with rising energy cost a greater thrust in energy efficiency in industrial sector has been given by the Govt. of India since 1980s. The energy conservation ACT 2001 has been enacted on 18th August 2001 which provides the efficient use of energy, its conservation and capacity building of bureau of energy efficiency created under the Act.
The following steps may help in conservation of electrical energy;
Adoption of energy conserving technologies, production aids and testing facilities.
- Efficient management of process/ manufacturing machinery and systems, QC and testing equipment for yielding maximum energy conservation.
- Optimum use of electrical energy for heating during soldering process can be abstained by using efficient temperature controlled soldering and de-soldering stations.
- Periodical maintenance of motors, compressors etc
- Use of power factor correction capacitors, Proper selection and layout of lighting system; timely switching on-off of the lights; use of compact fluorescent lamps wherever possible etc.
- FINANCIAL ASPECT
Fixed Capital
Land & Building:
| S.No. | Description | Area
(Sq. Ft.) |
Rent/
Sq. Ft. |
Rent/month (Rs.)
|
| 1 | Work Shed (Sq. Mtr.) | 900 | ||
| 2 | Office, Stores | 100 | ||
| Total Built up area on Rent | 1000 | 30 | 30,000 |
Sub Total
6.1.1. Machinery and Equipments
(a) Production Unit
| S. No. | Description | Qty | Rate | Value(Rs.) | |
| 1 | Vacuum Impregnation Plant | 1 | 3,50,000 | 3,50,000 | |
| 2 | Film Winding Machine | 1 | 75,000 | 75,000 | |
| 3 | Air conditioner with accessories | 2 | 30,000 | 60,000 | |
| 4 | Bench Drilling Machine | 1 | 25,000 | 25,000 | |
| 5 | Hand Drilling Machine | 1 | 10,000 | 10,000 | |
| 6 | Bench Grinder | 1 | 20,000 | 20,000 | |
| 7 | Welding Set 200 Amps | 1 | 10,000 | 10,000 | |
| 8 | Spot Welder Machine 15 KVA | 1 | 45,000 | 45,000 | |
| 9 | Sheet Bending Machine | 1 | 15,000 | 15,000 | |
| 10 | Hand Shearing Machine | 1 | 5,000 | 5,000 | |
| 11 | Baking Oven | 1 | 40,000 | 40,000 | |
| 12 | 7 tank surface treatment Plant | 1 | 25,000 | 25,000 | |
| 13 | Spray Painting unit with compressor | 1 | 65,000 | 65,000 | |
Sub Table 7,45,000
(b) Testing Equipment
| S. No | Description
|
Qty. | Rate
|
Value(Rs.) |
| 1 | High Voltage Tester(2.5 KV) | 1 | 15,000 | 15,000 |
| 2 | Insulation tester multi range. | 1 | 12,000 | 12,000 |
| 3 | D.C .Over Voltage Tester. | 1 | 8,000 | 8,000 |
| 4 | Discharge device Tester | 1 | 8,000 | 8,000 |
| 5 | Auto transformer 270V,20Amp | 1 | 10,000 | 10,00 |
| 6 | Test panel with Ammeters, Volt
Meters, watt meters of different range P.F. meter, capacitance bridge etc.
|
1 | 30,000 | 30,000 |
Sup Total 83,000
Total 8,28,000
6.1.2. Other Fixed Assets
| (a) | Electrification charges | LS. | 20,000 | |
| (d) | Office equipments | L.S | 50,000 | |
| (e) | Tools, Jigs and Fixtures etc. | L.S | 25,000 | |
| (F) | Pre-operative expenses | L.S | 5,000 |
Sub Total 1,00,000
Total Fixed Capital Rs. 9,28,000/-
Working Capital (per month)
-
- Personnel
| S.No | Designation | No.of
Persons |
Salary/ month
(Rs.) |
Total(Rs.)
Per month(Rs.) |
| 1 | Manager cum Technical
Supervisor (Self) |
1 | 15,000 | 15,000 |
| 2 | Sales Supervisor | 1 | 12,000 | 12,000 |
| 3 | Skilled Worker | 2 | 10,000 | 20,000 |
| 4 | Semi-Skilled Worker | 3 | 9,000 | 27 ,000 |
| 5 | Un Skilled workers | 2 | 8,600 | 17,200 |
| 6 | Peon-cum-Watchman | 1 | 8,600 | 8,600 |
Total 99,800
Perquisite@ 15% of salary 14,970
Total 1,14,770
6.2.2. Raw Materials
| S1.No. | Description | Qty. | Rate | Value(Rs.) |
| 1 | AI-Zn Metalized Polypropylene Film
(Kg) |
2000 | 800 | 16,00,000 |
| 2 | PXE Oil (Synthetic Insulating Oil) (Kg) | 800 | 150 | 1,20,000 |
| 3 | MS sheets, screws Pressman Paper,
Porcelain bushing, packing material |
LS | 75,000 |
Total 17,95,000
6.2.3. Utilities
| S1.No. | Description | Qty | RATE | Value(Rs.) |
| 1 | Electricity (KWH) | 2,000 | 10.00 | 20,000/- |
| 2 | Water | 2,000/- |
Total 22,000
6.2.4. Other Contingent Expenses (Rs.)
| 1 | Rent | 30,000 |
| 2 | Postage& Stationery | 1,000 |
| 3 | Repair& Maintenance | 1,000 |
| 4 | Transport and conveyance charges | 5,000 |
| 5 | Advertisement | 3,000 |
| 6 | Insurance | 1,000 |
| 7 | Consumables | 3,000 |
| 8 | Other Misc. Expenses | 2,000 |
Total 48,000
Total Recurring Expenditure (per month) Rs.19,79,770/-
Total Working Capital (3 month basis) Rs.59,39,310/-
6.3. Total Capital Investment
Total Fixed Capital Rs.9,28,000
Total Working Capital (for 3 month) Rs.58,39,310
Total Rs.68,67,310/-
7.FINANCIAL ANALYSIS
7.1.Cost of Production (per annum)
Total recurring cost per year RS.2,37,57,240
Depreciation on plant and machinery@ 10% Rs.82,000
Depreciation on jigs, fixtures, tooling etc. @ 25% Rs.6,250
Depreciation on total capital investment @12.5% Rs.10,000
Interest on total capital investment @ 12.5% Rs. 8,58,413.75
Total Rs.2,47,14,703.75
Say Rs.2,47,14,000
7.2 Turnover (per annum )
| Item | Qty.(Nos.) | Rate (Rs.) | Total sales (Rs.) |
| LT Power capacitors of different
Ratings of KVAR |
21,000 | 1,280 | 2,68,80,000 |
Total Turn Over 2,68,80,000
7.3. Net Profit (per annum)
= Turnover – cost of production = Rs.21,66,000/-
7.4 .Net profit Ratio
Net profit per year
= _________________ * 100
Turnover per year
7.5 .Rate of Return
Net profit per year
= ____________________ * 100
Total Capital Investment
= 31.54%
7.6.Break-even Point
Fixed Cost per annum (Rs.):
Depreciation on plant and machinery @10% 82,000
Depreciation on Jigs & Fixtures @ 25% 6,250
Deprecation on office equipment @20% 10,000
40% of Other Contingent (Excluding Rent + Insurance) 81,600
Rent + Insurance 3,72,000
40% of salary & wages 5,50,896
Interest on total capital investment @ 12.5% 8,58,413.75
Total fixed Cost 19,61,959.75
B.E.P
Fixed Cost = __________________ * 100
Fixed Cost + Net Profit
=47.53%
