11/6/2019 TIMEIS

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Technology Automobile Body Building (Bus Body)

Home » Technology » Project Profiles » Mechanics » Automobile Body Building (Bus Body)
Finance
Product Code 374103003
Business Ecosystem
Quality and Standards Buyer's Specifications
Information Desk Production Capacity Qty. : 324 Nos.(per annum)
Value : Rs. 13,51,00,000
Online Services
Introduction
Automobile body (Bus Body) building is an important activity. The chasis are supplied by Automobile manufacturers, and body is built
by automobile body builders as per the requirements of the customer and specifications of the different State Transport Undertakings.

Market Potential
Bus is used as the most common public transport vehicle in our country. Different State Transport Undertakings are plying their buses
for commuting public from one place to another and from one State to another. Apart from these Undertakings, Private Bus Operators,
travel agencies etc. are also operating buses on permit basis. With rapid changes in the society, now a days it has become necessary
to provide good and efficient service to the public. Also with the rapid industrialisation, public is moving very frequently from one place
to another using public transport. Since more and more development in the coming years, it is expected that demand of public
transport, private transport and luxury transport in the form of buses will increase in the coming years.

Basis and Presumptions

Working will be for 3 shifts per day of 08 hrs each at minimum 75% working efficiency to achieve the envisaged production
capacity.
A time period of three years has been considered for achieving the full capacity utilisation after start of commercial production.
Labour wages are considered as per the prevailing market rates.
Interest on fixed and working capital investment has been calculated at an average rate of 12% per annum.
The cost of land and building has been calculated as per the prevailing market prices, and these rates are likely to vary from
place to place.

Implementation Schedule
The following activities are to be completed and the approximate time for each activity is as mentioned against each of them

Activity Period (in Weeks)

Selection of product 4

Selection of Industrial site 2

Provisional registration 2

Preparation of project Report 2

Application for finance and getting Loan sanctioned 24

Recruitment of man power 4

Purchase and Installation of machinery 14

Trial Run 1

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It is necessary to obtain permanent Registration Certificate from the concerned District Industries Centre after commencement of
commercial production.

Technical Aspects
Process of Manufacture
Metal sheets are cleaned and derusted for grease/oil if any. Then sheets are cut to size for forming different parts and these parts are
formed on press brake. Now different parts and their subassemblies are fabricated as per their design and size. These parts and
subassemblies are fabricated– together to make them a complete bus body. The complete body is painted as per the requirements of
the customer. Shower test is carried out for leakage etc.

Quality Control and Standards

Production Capacity (per annum)

Production Capacity (per annum)

Quantity 324 Nos.

Value Rs 13,51,00,000

Motive Power 150 HP (Approx.)

Pollution Control
The manufacturing/fabrication of bus body does not pose any problem for pollution. However, proper ventilation is to be done in shop
floor area and painting area. Provision for pollution control equipments has been made in this Project Profile.

Energy Conservation
Suitable energy efficient motors are to be used on proposed machines with provision of recommended shunt capacitors.

Financial Aspects
(i) Civil cost Amt. (In Rs.)

Land 4000 Sq.Mtrs. @ Rs. 3500/ Sq.Mtr. 1,40,00,000

Office - 100 Sq. Mtr @ Rs.7500/Sq.mtr. 7,50,000

Store –150 Sq. Mtr @Rs.6000/Sq.mtr. 9,00,000

Working shed - 2000 Sq. Mtr. @ Rs. 6000/Sq.mtr. bore well and raw water storage, DG set room, 1,20,00,000
security room, laboratory, maintenance room, workers room

Paint Shop (Preferably Dust Proof) - 100 Sq. Mtr. @ Rs. 7000 per Sq. mtr. 7,00,000

Boundary wall, gates, roads inside the premises 8,00,000

Cost of land and building = 1,40,00,000 + 1,51,50,000 2,91,50,000

(ii) Machinery and Equipments

Description Ind./ Imp. Qty. Total (In Rs.)

Motorised Guillotine Sheet Shearing Machine Capacity 2500×4 mm with Ind. 1 9,00,000
10 HP electric motor and starter etc. also fitted with front and back side
gauges, sheet holding devices etc

Power operated Press Brake bending capacity 2440 × 4 mm, 100 Ton with Ind. 1 11,00,000
15 HP Main Motor and 2 HP raw adjustment Motor

Suspension type M.I.G. Welding system 250 Amp. along with power Ind. 1 2,00,000
source, wire feeder, Torch and flow Calibrated Co2 regulator and Co2
heated with core assembly OPC.

Gas Welding set with all the Accessories etc. Ind. 2 50,000

Arc welding machine 300 Amps. 15 kVA Air Cooled complete with all the Ind. 5 2,00,000
accessories

Air Compressor with painting equipment and accessories for painting Ind. 1 2,00,000

Different types of power/Air operated tools like Nut runner, drilling gun etc. Ind. L.S. 4,00,000

Drilling Machine 1½" capacity Ind. 2 1,00,000

Metal cutting bandsaw for cutting Aluminium sections complete with 2 HP Ind. 1 1,00,000
Electric motor and accessories

Hoist chain pulley block crane and material handling trolley etc. Ind. L.S. 5,00,000

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Testing Equipment and others

Shower tester self fabricated (Nozzles to be arranged at different Ind. 1 3,00,000

orientations to cover the entire portion of the vehicle)

Portable digital paint thickness checking equipment (Coating thickness Ind. 25,000
checking)

Small measuring tools Ind. 25,000

Pollution Control Equipment 2,00,000

Bore well and raw water system, DG set with accessories 15,00,000

Excise and sales tax electrification and installation charges @ 40% cost of 27,20,000
machinery and equipment

Cost of Jigs, Fixtures etc. L.S. 5,00,000

Cost of office equipment L.S. 5,00,000

Total plant and m/c cost 95,20,000

(iii) Preoperative expenses 5,00,000

Total Fixed Capital (i+ii+iii) Rs. 2,91,50,000 + 95,20,000 + 5,00,000 3,91,70,000

B. Working Capital (per month)

(i) Personnel

Description No. Salary (Rs.) Amount (In Rs.)

(i) Administrative and Supervisory

General Manager 1 30,000 30,000

Commercial Manager, Sales and Marketing staff, finance and 1,75,000

accounts staff and purchase staff and stores staff

Administrative officer and staff 30,000

Production manager, laboratory chemists maintenance engineers 2,00,000

and staff, shift incharges

Chowkidar/Watchman 7 21,000

(ii) Technical

Skilled Workers 40 5000 2.00,000

Semi-skilled workers 45 4000 1,80,000

Un-skilled Workers 40 3000 1,20,000

Total 9,56,000

Add perquisites @ 22% 2,10,000

Total 11,68,000

(ii) Raw Materials

Particulars Ind./ Imp. Qty. Rate (Rs.) Amount (In Rs.)

)

M.S. Channel 75 × 40 to × 50 mm Ind. 9 MT 40,000 3,60,000

M.S. Equal Angle 25× 25×3 to 50×50×6 mm Ind. 15 MT 40,000 6,00,000

M.S. Flat 50 to 70 mm wide Ind. 3.750 MT 40,000 1,50,000

Aluminium chequered Plate 8 mm to ½ inch Ind. 3 MT 2,50,000 7,50,000

CR/BP Sheet 10 to 26 SWG Ind. 75 MT 52,000 39,00,000

M.S. Pipe 3/4" to 1" Dia Ind. 1.500 MT 40,000 60,000

Aluminium Rolled Sections Ind. 1.500 MT 2,50,000 3,75,000

Bought out items and hardware items Ind. L.S. 2,00,000

Other bought out items such as Raxine Ply,. PVC. Sheet. Ind. L.S. 5,00,000
Foam OTC, Electrical fittings and fixtures, emblem etc.

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Total 68,95,000

(iii) Utilities

(In Rs.)

Power 150x0,8x0.73x24x25x4 2,10,000

Water L.S. 10,000

Total 2,20,000

(iv) Other Contingent Expenses

(In Rs.)

Lubricants 20,000

Postage and Stationery and communication expenses 30,000

Consumable stores (Redoxide, Paint, Putty, Kerosene, Emery paper, Welding electrode, tools etc.) 5,00,000

Transport Charges 25,000

Advertisement and Publicity 25,000

Insurance Charges 21,000

Sales Expenses 1,50,000

Misc. Expenses 50,000

Total 8,21,000

(v) Total Recurring Expenditure (per month)

(In Rs.)

Staff and labour 11,68,000

Raw material 68,95,000

Utilities 2,20,000

Other Contingent Expenses 8,21,000

Total 91,04,000

(vi) Working capital for 3 months Rs. 2,71,35,000

C. Total Capital Investment

(i) Fixed Capital Rs. 3,91,70,000

(ii) Working capital for 3 months Rs. 2,73,12,000

Total Rs. 6,64,82,000

Machinery Utilisation
It is assumed that machinery will be utilised at 75% efficiency.

Financial Analysis

Cost of Production (per year) (In Rs.)

Total recurring cost 10,92,48,000

Depreciation on building @ 5% 7,58,000

Depreciation on Dies, Jigs and Fixtures etc. @ 20% 1,00,000

Depreciation on machinery and equipments @ 10% 8,52,000

Depreciation on office equipment 20% 1,00,000

Interest on total capital investment @ 12% 79,78,000

Total 11,90,36,000

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Turnover (per year)

Item Qty. Rate (Rs.) Total (In Rs.)

Full size Bus body 324 Nos. 4,11,440 per piece 13,33,00,000

Sale of scrap 90 MT 20000/MT 18,00,000

Total 13,51,00,000

Net Profit (per year) (Before Income Tax)

Profit = Rs. 13,51,00,000 – 11,90,37,000

= Rs. 1,60,63,000

Net Profit Ratio

Net Profit (per year) ×100

Total Sale

1,60,63,000 × 100

= 13,51,00,000

= 11.89%

Rate of Return
Net Profit (per year) × 100

Total investment

1,60,63,000 × 100

= 6,64,82,000

= 24.16%

Break-even Point

Fixed Cost (In Rs.)

Depreciation on machinery and equipment, tools, fixtures, office equipment and building 18,10,000

Interest on total investment 79,57,000

40% of Salary and wages 56,06,000

40% of utilities and other contingent expenses 39,40,000

Total 1,93,13,000

B.E.P Fixed cost × 100

Fixed cost + Profit

1,93,34,000×100

1,93,34,000 + 1,60,63,000

= 54.62%

Additional Information
The unit should install degreasing and phospating plant for obtaining long life and good quality paint of bus body to improve the quality
of product .

Addresses of Machinery Suppliers

M/s. Parekh Machine Tools
5, Khetra Das Lane, Behind Broad
Way Hotel, Kolkata.
M/s. Economic Machine Tools
21, Dr. V.B. Gandhi Marg,
(Forbes Street), Fort,
Mumbai-1
M/s. Master Engg. Works (Regd.)
G.T. Road (Dholewal), Opp. Indian

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Oil Petrol Pump, Ludhiana-3.
M/s. International Machine Tools Corporation
Nyayamurti G.N. Vaidhya Marg,
Bank Street, Post Box No-2,
Behind State Bank of India,
Fort, Mumbai-1.

Raw Material Suppliers

M/s. Steel Authority of India.
State Laghu Udyog Nigam.
Local Market.

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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