MODEL PROJECT

LT POWER CAPACITORS

 

PRODUCT                                           :

QUALITY AND STANDARDS                 :

PRODUCTION CAPACITY                 :

Value

MONTH AND YEAR                                 :

OF PREPARATION

 

PREPARED BY                                    :

 

  1. 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.

 

  1. 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

  1. The basis for calculation of  Production Capacity has been taken on Single

Shift  basis on 75% efficiency.

 

  1. 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.

 

  1. The cost of Machinery and Equipment refer to a particular make/ model and

The prices are approximate prevailing in 2014-2015.

 

  1. 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.

 

  1. 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

  1. Procurement of raw materials commences from the 8th month onwards
  2. When imported plant and machinery are required, the implementation period

of project may vary from 12 months to 15 months

 

  1. 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.

  1. 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.

  1. 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.
  1. Periodical maintenance of motors, compressors etc
  2. 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.

 

  1. 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%

 

Deputy Director

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