PROJECT PROFILE

PROJECT VOLTAGE STABILISER, UPS AND

INVERTOR

QUALITY STANDARDS AS PER CUSTOMER’S SPECIFICATION

PRODUCTION CAPACITY PER QTY. 2400 NO. OF STABILISER OF DIFFERENT

ANNUM SIZES.
400 NO. OF UPS (.25 KVA TO 2 KVA)
600 INVENTOR .5 KVA TO 2 KVA
MONTH & YEAR OF NOV, 2005
PREPARATION

SMALL INDUSTRIES SERVICE

PREPARED BY INSTITUTE
GOVERNMENT OF INDIA
VIKASH SADAN, COLLEGE SQUARE,
CUTTACK-753003
Tel: 2611929, 2611329
E-mail : ctk_dirsisi@sancharnet.in
Website :
 VOLTAGE STABILISER (.25 KVA TO 5 KVA), UPS AND INVERTOR

INTRODUCTION:

Product & its uses:

To-day Electrical Appliances are used widely using electrical energy

which is highly fluctuating due to various factors. In order to provide
constancy and adequate reliability of power supply, various electrical
equipments are used in supply line. They are Voltage Stabilizer, UPS and
Inverter.
Voltage Stabilizer: The Voltage Stabilizers are used to maintain a constant
AC Voltage from the fluctuating supply mains. This provides an out put
voltage within a specified limit for supplying to load irrespective of wide
fluctuations in the input voltage, independent of load factor and without
introducing harmonic distortions. The Voltage Stabilizer adjusts
automatically the voltage variations whether high or low to the required
voltage level necessary for the safe operation of costly equipment like
Refrigerators, Air conditioners, TV & VCRs, Washing Machine and other
valuable scientific and medical equipments, etc.
UPS: UPS on abbreviation of uninterrupted power supply system
continuously monitors the main voltage and provides regulated voltage free
from spikes and secures at the output. This is used instantly as safety
measure in emergency or mains failure, load shading or during the
irregularities of electric supply. On mains failure, the Inverter instantly
switches on and the UPS provides regulated RMS voltage from the battery.
During the irregularities, it provides a reliable constant source of supply for
a limited time and acts as Voltage stabilizers. A regulated charger keeps the
batteries charged when the mains voltage is available. The back up time can
vary from 15 minutes to the extent of 2 hours, depending upon the capacity
of the charger. The commonly used battery charged is for the period of 20
minutes to 30 minutes. There can be a provision of appropriate indications
on the front panel. UPS are widely used in Computer and Instrumentation
system.
Inverter: This is a device which coverts DC power into an alternating
source. This conversion may be accomplished by electro mechanical means
like motor-generator sets or entirely by electronic means. Inverters in which
power conversion is accomplished by thyristas (SCRs) are called static
Invertors. A static inverter uses transistors or thyristors as switched.
Invertors are used where emergency stand by power is required and / or
there is no AC power is available. Such applications are flourescent tube
lighting during power failure, in vehicles, in hospitals, airports etc. These
also find wide uses as stand by power supply for computers, instrumentation
and tele-communication equipment etc.
MARKET POTENTIAL:
Wide fluctuation in the power system in distribution line has
necessiated the use of voltage stablisers to protect the costly and valuable
electrial equipment . Similarly, the advancement in the field of electronics
coupled with I.T. revolution has brought a prosperous feature for the growth
of computers. Once the luxury today the computers have become necessity
and in orders to maintain the constancy of Computer operation, UPS and
Invertors are used widely as standby power supply, automatically, without
any interuption in the power system.
The voltage stabilizers UPS and Invertors up to 500 KVA have been
reserved for the manufacture in small scale sector and there being a
tremendous growth of industry and uses of modern instruments. The demand
of these produce is emmence.
3. Basis and Presumptions:
i) Tshe basis for calculation of production capacity has been taken on
single shift basis on 75% efficiency.
ii) The maximum capacity utilization on single shift basis for 300
days a year. During first year and second year of operations the
capacity utilization is 60% and 80% respectively. The unit is
expected to achieve full capacity utilization from the third year
onward.
iii) The salaries and weages, cost of raw materials, utilities, rents, etc.
are based on the prevailing rates in and around Cuttack,
Bhubaneswar. These cost factors are likely to vary with time and
location.
iv) Interest on term loan and working capital loan has been taken at
the rate of 12% on an average. This rate may vary depending upon
the policy of the financial institutions/ agencies from time to time.
v) The cost of machinery and equipments refer to a particular make/
model and prices are approximate.
vi) The break-even point percentage indicated is of full capacity
utilization.
vii) The project preparation 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 utilize
common test facilities available at Electronics Test &
 Development Centres (ETDCs) and Electronic Regional Test
Laboratories (ERTLs) and Regional Testing Centres (RTCs).
ix) Sthe land is on lease basis.
Implementation Schedule:
The major activities in the implementation of the project has been
listed and the average time for implementation of the project is estimated
at 12 months.
Sl. Subject Period (in
months)
1 Preparation of project report 1
2 Registrastion and other formalities 1
3 Sanction of loan by financial institutions 3
4 Plant & Machinery
a) Placement of orders 1
b) Procurement 2
c) Power connection/Electrification 2
d) Installation/Erection of machinery/ Test
Equipment 2
5 Procurement of raw materials 2
6 Recruitment of Technical Prsonnel, etc. 2
7. Trial production 11
8. Commercial production 12

Note:
1. Many of the above activities shall be initiated concurrently.
2. Procurement of raw materials commences from the 8th month
onwards.
3. When imported plant and machinery are required, the implementation
period of project may vary from 12 months to 15 months.
TECHNICAL ASPECTS:
1) Process of Manufacture: The manufacturing activities of stabliser,
UPS and Invertors are more or less in two stages (i) Fabrication of Cabinet,
Control Panel etc. as per design and winding of transformers and assembling
of PCB’s as per the requirement. The Battery charger for UPS and Inverters
can be purchased as raw material from the market. The size and design are
of different ranges i.e. 0. 25 KVA to 5 KVA .
Special transformers needed for such products are wind in the factory
itself. The critical components which go to make up the product are tested to
ensure that they meet the required specifications. The components are fixed
and soldered on printed circuit board according to the design. Controls and
sockets are assembled individually. Cabinet pannel and chasis, fabricated in
the factory and fitted together and the controls and sokets are mounted. The
PCB is fitted on the chasis and all the inter connections are made. The
manufactured items are tested as per desired performance specifications for
good quality and reliability before packing and desptching to concerned
parties.
Quality standards:
Apart from meeting the specification requirement in the Indian
standard for these product, the customers specification and requirement is
also very essential which may vary as per the requirement. Simple technical
data for each type of product is given below;

1. Stabiliser Input Voltage Variation 140 V AC to 260 V

output Voltan power rating AC 230 V AC ≠ 10
VAC 100 VA/500
VA
2. UPS Input Voltage 140VAC to 270 VAC
 Invertor output Voltage 220/230≠ 2% ACV
Input Frequency 50 H3 ≠ 1%
Inverter output freequency 50 H3 ≠ 1%
Battery charging current 5A
Battery voltage 12V to 72 V from 5
KVA to 2 KVA
20 minutes to 30
Back up time minutes extendable to
2 hours
3. Inverters: Input voltage 12/24 Volt DC
Input Current 211 AMP DC
Output power and 20 Watts ≠ 2%
Regulation
Freequency Regulation 50 ≠ 1%
Nominal efficiency 70%
3. Production Capacity per annum:
Voltage Stabilizer UPS Invertor
QUANITY IN NO. 2400 600 600
VALUE IN RS. 12 lakhs 18 lakhs 30 lakhs
Total Rs. 60 lakhs.
4. Approximate Motive Powr Requirement: 10 KVA

5. Pollution Control:
The Govt. accords utmost importance to control environmental
pollution. The small-scale entrepreneurs should have an environmental
friendly attitude and adlpt pollution control measures by process
modification and technology substitution.
India having accorded to the Montreal Protocol in Spet. 1992, the
production and use of Ozone Depleting Substances (ODS) like Chlorofluore
Carbon (CFCs), Carbon Tetrachloride, Halons and methyl Chloroform, etc.
need to be phased out immediadtely 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.

6. Energy Conservation:
With the growing energy needs and shortage coupled with rising
energy cost, a greater thrust in energy efficiency in industrial sector has been
given by the Government of India since 1980s. The Energy Conservation
Act 2001 has been enacted on 18th August, 2001, which provides for
efficient use of energy, its conservation & capacity building of Bureau of
Energy Efficiency created under the Act.
The following steps may help for conservation of electrical energy:
i) Adoption of energy conserving technologies, production aids
and testing facilities.
ii) Efficient management of process/ manufacturing machineries
and systems, QC and testing equipments for yielding maximum
Energy Conservation.
iii) Optimum use of electrical energy for heating during soldering
process can be obtained by using efficient temperature
controlled soldering and de-soldering stations.
iv) Periodical maintenance of motors compressors, etc.
v) 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 ASPECTS:
Land and Building:

Land own
Built up area – 1000 sq.ft. @ Rs.250 per sq.ft.
Office, Stores- 400 sq.ft.
Assembly and testing- 800 sq.ft. on lease basis
Rent payable/month/annum Total= 1,90,000

Machinery and equipment:

Sl. Description Ind/Imp. Qty. Value(Rs.)
1 Guillotine Shearing machine-1200 mm Ind. 2 90,000
2 Sheet Bending Machine -do- 1 30,000
3 Hand lever shearing machine -do- 1 5,000
4 Portable Drilling machine -do- 2 10,000
5 Bench Drilling Machine ½” dia -do- 1 6,000
6 Gun drilling machine -do- 2 8,000
7 Coil winding machine with accessories -do- 2 1,20,000
(Automatic)
8 Arc welding Transformers with -do- 2 40,000
Accessories
9 Gas welding set -do- 2 10,000
10 Air compressor with spray gun -do- 2 24,000
11 Vice bond) -do- 2 6,000
12 Hand tools and Measuring instruments -do- LS 50,000
like ascilloscope, DC
13 Other Fixed Cost
a) Electrification @ 10% 40,000
b) Office equipment 40,000
c) Mould Dies, Tools, etc. 10,000
14 Pre operative expenses 10,000
16 Total Fixed Cost 5,00,000
ii) Working Capital per month
i) Staff & Labour:
Sl. Designation No. of Salary/month Total salary
persons (Rs.) per month
1 Manager/Engineer 1 5,000 5,000
2 Supervisor 1 3,500 3,500
3 Skilled worker 3 2,500 7,500
4 Unskilled worker 6 2,000 12,000
5 Welder 1 2,200 2,200
6 Store keeper 1 2,200 2,200
7 Peon/ watchman 2 1,800 3,600
8 Marketing Executive 1 3,500 3,500
Total 39,500
+ perquisites @ 15% of salary 5,925
Total Rs.45,425

ii) Raw material requirement/month for 200 nos. stabilizers, 50 nos.

UPS and 50 Invertors.
Sl. Description Ind./ Qty. Rate Total
Imp. (Rs.)
1 M S Sheet Ind. 3.5 MT @ 70,000
20,000/MT
2 M.S. Angles Flats Ind. 1.5 MST @ 27,000
18,000/MT
3 Tur (Al. and Cu ) for -do- 10 kg. @ 150/kg 15,000
transformer
4 Transformer Material -do- 300 @ 100 30,000
5 PCB -do- 300 @30 9,000
6 Dry SMF Batteries -do- 200 @ 345 69,000
7 Transistor -do- LS 18,000
8 Diodes -do- LS 6,000
9 Sresistor, Capacitors -do- LS 10,000
10 H V Condensers -do- LS 3,000
11 Presets -do- LS 10,000
12 Heat Sink -do- LS 4,000
13 Inductors -do- LS 5,000
14 Potting Compound -do- LS 3,000
15 Sferric Cure -do- LS 6,000
16 Indicators, Fuse, Other -do- LS 5,000
accessories
17 Nut Bols & other hardware -do- LS 3,000
18 Consumable wires -do- LS 6,000
Total 3,00,000

(iii) Utilities per month:

1. Power 1500 units @ 4.20 per unit Rs.6,300/-
2. Water charges Rs. 200/-
Rs.6,500-00
(iv) Other contingent expenses (per month):
Sl. Description Total (Rs.)
1 Postage and stationery 2,000
2 Transportation & consumables 10,000
3 Telephone 3,000
4 Consumable stores 5,000
5 Repair and maintenance 5,000
6 Insurance 5,000
7 Miscellaneous & contingencies 5,000
Total 35,000
Total Recurring Expenditure per month:
= (i) + (ii) + (iii)+(iv) = Rs.45,425+3m00,000+6,500+35,000 =Rs.3,86,925/-
Or Say =Rs./3,87,000

Total Capital Investment:

Fixed Capital = Rs.6,90,000
Working capital = Rs.3,87,000
10,77,000
FINANCIAL ANALYSIS:

(i) Cost of Production:

Sl. Description Total Rs.
1 Total recurring cost per year 46,44,000
2 Depreciation on machinery and equipment 40,000
@ 10%
3 Depreciation on office equipment and 8,000
furniture @ 20%
4 Depreciation on Tools & Jigs @ 10% 3,750
5 Depreciation on building @ 5% 9500
6 Interest on total investment @ 12% 129240
Total 48,34,490

(ii) Turnover per year:

Sl. Dessription Rate(Rs.) Qty.(no) Total Value (Rs.)
1 Votage stabilizer ( .5 KVA – On an 2400 12,00,000
2 KVA) average
@ 500
2 UPS .25 KVA – 2 KVA 3,000 400 12,00,000
3 Invertor 5,000 600 30,00,000
Total = 54,00,000

Profit per annum (before taxes):

Turn over per annum – Cost of production per annum
=Rs.5,65510
Net Profit ratio: = Profit/annum x 100 = 9,39,000 x 100 =10.47%
(Sales/annum) 60,00,000
Rate of Return: =Profit/annumx100 = 52.5%
investment
Break Even Point:
Fixed Cost per annum:
Depreciation on Building 9500
Depreciation on machinery and equipment @ 10@ 40,000
Depreciation on tools, jigs and fixtures @ 25% 3,750
Interest on total capital investment @ 12% 1,29,240
Insurance 60,000
40% Salaries & wages 2,18,040
40% other contingent utiliteis 1,44,000
(excluding rent & insurance)
total Fixed cost 6,04,530

Break-even Point:

Fixed cost x 100 = 6,04,530 x 100 = 51.66%

Fixed cost + Profit 6,04,530+565510

Addresses of Machinery and Equipment:

Machinery for Fabrication:

1) M/s. HMT Ltd., 31, Chowranghee, Kolkata.
2) M/s. Manaklal & Sons, 23 Ganesh Chandra Avenue, Kolkata-700013.
3) M/s. BB Engineering Works, 166/22 B.T. Road, Ashok garh (E), Kolkata-
700035, FAX-91033-5773680.
4) M/s. Nandy & Co., 125, Belidious Road, Howrah-1, Tel-6650061.
5) M/s. Perfect Machine Tools Co.(Pvt) Ltd., 17, Kharvela Nagar, Bhubaneswar.
6) M/s. Mohan Enterprises, Mangalabag, Cuttack-753001.
7) M/s. Patel & Co., Nuapatna, Cuttack-753001.
Test equipment:
1) M/s. Automatic Electric Ltd., Rectrifier House, 570, Nigaum Cross Road,
Wadala, Mumbai-400071(Tel-91-22-41467330, Website-www.aelindfa.corp.
2) M/s. Voltage Kiddepara Industrial Estate, Kshus Bridge-5, Hide Road, Kolkata.

Rawmaterial Suppliers:
1) Steel Authority of India Ltd.(Marketing Divn.), Bhubaneswar.
2) M/s. Powerware (India) (P), Mancheswar IE, Bhubaneswar.
3) M/s. Alta Electricals (P) Ltd., IE, Cuttack.
4) M/s. Electronics Sales Corporation, Bhagirath Place, Delhi.
5) M/s. Utkal Electronics, 270-A, Saheed Nagar, Bhubaneswar.
6) M/s. Indian Electronics Corporation, 106 & 111, Chandakar Integrated Complex,
Rasulgarh.
7) M/s. Puse Gear Indusstries, PH Road, Chennai-49.
8) M/s. Mutual Insulated Cables and Condustroes, LTD., A-25 & 26, Phase-III, New
Industrial Estate, Jagatpur, Cuttack-21.
9) M/s. Larsen & Toubro Ltd., Kolkata, Tel-033-2822301.
10) Local market.