PROJECT REPORT. Manufacturing of Pump Components. Submitted. As part of requirement of The Training. under

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1 PROJECT REPORT On Manufacturing of Pump Components Submitted As part of requirement of The Training under New Entrepreneur cum-enterprise Development Scheme Government of Tamilnadu Conducted by Entrepreneurship Development Institute,Guindy,Chennai Prepared by Name : N. Santhosh Kumar Address: 7/22, Jeeva street, Urumandampalayam, GN Mills post, Coimbatore-29 Mobile: santhoshkumar0683@gmail.com Training at Codissia, Coimbatore Financed by TIIC, Nanjappa Road, Coimbatore.

2 TABLE OF CONTENT Sl. No. Description 1. Executive summary 2. Business plan 3. Market survey 4. Machinery / equipment catalogue & invoice/quotations 5. Qualification and experience certificates 6. Part 1 registration under MSME

3 EXCUTIVE SUMMARY INTRODUCTION: In today s market competition demand plays vital role. Even though many companies have formed year by year the competition goes higher but still there is demand for right product from customer s side. In CNC machining works the customers demand is in terms of quality and delivery. As from my experience in the Engineering field for years I found it s the right business to do. To fulfill their requirement in terms of superior quality and delivery at right time is the ultimate aim of our business. In current scenario this aspect is very challenging. And there is huge scope in the Pumps Industries, Textile Machines Spares, Valves and Heavy Engineering market. ASK ENGINEERING is the company which comes across with plan to fulfill customer s needs and demand through development in ourselves, society and nation. This project aims at studying about detailed outline of a new business proposal. LAND AND BUILDING: The Unit is proposed to start the industry in the area of NANJEKOVENDENPUDUR in 1800 sq.ft with 35 HP. PLANT AND MACHINERY: The following table refers the plant and machinery details, S.NO Description TYPE CAPACITY POWER Qty 1. CNC TURNING CENTRE SUPPER JOBBER 200 MM CHUCK 15KVA 2

4 2. CONSUL STABLIZER INDUSTRIAL V 3 PHASE 1 3. AIR COMPRESSOR RECIPROCATING 7.5 HP 5.5 KW 1 MAN POWER: The following table refers the Manpower details SNO PARTICULARS QUANTITY 1 Machine Operators 4 3 Quality Inspectors 1 TOTAL 5 TRANSPORT: Since the proposed unit is within the corporation limit of Coimbatore transport facilities are easily available. WATER: Water is required to mix with cutting oil for machining purpose. Purified RO drinking water should be purchased for drinking purposes. MATERIALS: The main materials used are Coolent oils, Cutting tools, Cotton wastes, Lubrication oils, Measuring Instruments, Jigs and fixtures are available in local market.

5 POLLUTION: Since the machines are computer based and pollution does not arise. INTRODUCTION OF PROPRIETOR: Proprietor N. Santhosh Kumar is a B.com (CA) graduate with hands on experience in industrial engineering for 4 years. Holds good expereince in business development, planning and execution, administration, marketing. Playing a key role in an organization managing, development & end-to-end operations. Having a good relationships amoung the companies around coimbatore. The better part of me is attitude, comprising of attributes like striving for excellence, quick learning, multi tasking, communication skills and above all a huge appetite for being the best. BIO DATA: EDUCATION B.com (CA) SNS Rajalakashmi College of Arts and Science, Coimbatore. (Barathiar University) Year of Completion 2009 EXPERIENCE Operations and supervising Marks Engineering, Coimbatore

6 Year of Experience 4 years LANGUAGE PROFICIENCY: Read : English and Tamil Write : English and Tamil Speak : English, Tamil. PERSONAL DETAILS: Date of Birth : Marital Status : Single Phone : Permanent Address : 7/22, Jeeva street, Urumandampalayam, GN Mills post, Coimbatore-29. MATERIALS AND JOB ORDER PROVIDER: Texmo pumps and Aquapump, Coimbatore who are the leading manufacturers of pumps and motors products who are one of the major supplier to our country and worldwide.

7 MARKET SURVEY ON DEMAND OF CNC TURNING CENTER BASIC QUESTIONS: 1. Do you think that there is a demand for the turning center in Coimbatore? A. Yes B. No. C. Moderate demand D. No idea. 2. What problem do you face often with the CNC job work? A. Quality issues. B. Punctuality issues. C. Price issues. D. Other. 3. What is the main problem that has been faced by the CNC turning center nowadays? A. Power problem. B. Labor problem. C. Order problem. D. Payment problems. 4. Will there be a future demand for the CNC? A. Yes. B. No. C. Moderate. D. More demand. 5. Which CNC machine do you think it is economic and good in performance in India? A. Ace micromatic. B. Lakshmi. 6. Is there any difficulty in getting orders for CNC turning center nowadays? A. No. B. Yes. C. Very easy. D. Very difficult.

8 7. Are you receiving continuous orders for your machines? A. Yes B. No. C. Occasional orders. D. High orders. 8. Do you having capacity of resources to full fill their requirement? A. Low level C. Medium level. D. Higher level. 9. Is reference an important factor in receiving orders initially? A. Yes. B. No. 10. What are the major expenditure you are spending for? A. Power. B. Labor. C. Tools and consumables. D. Rent. INTRODUCTION OVERVIEW: An important indicator of success for any business is the extent to which it has a high performing management team. This evaluation process is intended to know the current demand of the CNC turning center in Coimbatore at present time.

9 The information has been gathered through surveys with the intension of knowing the CNC machine demand. At the same time the information has been gathered from the expert in the CNC and from the companies in Coimbatore. Using the overall average rating, we prepared a graph sheet below to know the feedback easily. I discussed around 10 companies in Coimbatore and gather information and prepared the graph sheet. As I approached these companies, some companies have refused and some gave the information which we cannot relay. So we have not included those companies which have not co-operate with me. 1. Do you think that there is a demand for the turning center in Coimbatore? A. Yes B. No. C. Moderate demand D. No idea. When we ask that there is a demand for the CNC turning center in Coimbatore nowadays, out of 10, 7 companies answered yes, 2 companies answered Moderate demand and 1 company answered no.

10 2. What problem do you face often with the CNC job work? A. Quality issues. B. Punctuality issues. C. Price issues. D. Other. When I ask what problems that the company face often in CNC job work, out of 10, 4 companies answered Quality issues, 5 companies answered Price issues, and 1 company answered that the punctuality is their problem.

11 3. What is the main problem that has been faced by the CNC turning center nowadays? A. Power problem. B. Labor problem. C. Order problem. D. Payment problems. When I ask the companies that what are all the problems that they are facing, 4 companies told that the power problem is the main problem that they are facing, 4 companies said labor is becoming scarce, 1 said rent has been his problem and 1 said payment problems.

12 4. Will there be a future demand for the CNC? A. Yes. B. No. C. Moderate. D. More demand. When I ask the companies that there is a demand for the CNC turning center in future, 4 companies said Yes, 1 company said No, 3 companies said Moderate, and 2 companies said more demand.

13 5. Which CNC turning machine do you think it is economic and good in performance in India? A. Ace Micromatic. B. Jothi. Lakshmi. C. Doosan. D. Hurco When I ask the companies about which CNC is the best in India for performance and economy, 6 companies said Ace Micromatic, 1 company said Jothi, 2 companies said Doosan, and 1 company said Hurco.

14 6. Is there any difficulty in getting orders for CNC turning center nowadays? A. No. B. Yes. C. Very easy. D. Very difficult. When I ask the companies that there is a difficulty getting Job order for CNC turning center, 4 companies said No, 1 company said Yes, 4 companies said very easy, and 1 companies said very difficult.

15 7. Are you receiving continuous orders for your machines? A. Yes B. No. C. Occasional orders. D. High orders. When I questioned the companies regarding the orders for their machinery 5 companies said Yes, 1 company said No, 2 companies said Occasional orders, and 2 companies said High orders.

16 8. Do you having capacity of resources to full fill their requirement? A. Low level C. Medium level. D. Higher level. When I ask the companies that they have the capacity to fulfill the requirement of their customer, 2 companies said they have low level, 5 companies said they have medium level and 3 companies have higher level.

17 9. Is reference an important factor in receiving orders initially? A. Yes. B. No. When we ask the companies that reference is important factor in receiving orders 7 companies said yes and 3 companies said no.

18 10. What are the major expenditure you are spending for? A. Power. B. Labor. C. Tools and consumables. D. Rent. When I ask to the companies regarding the major expenditure, 4 companies said Power, 2 companies said Labor, 2 companies said Tools and consumables and 2 companies said Rent.

19 Conclusion: According to the survey results we have concluded that Coimbatore is the best place for CNC based business startups.

20 Application Form - Business Details Office Address Name of Business Enterprises : ASK ENGINEERING Door No 35/A Street Area City District State VIVEKANANDA STREET NANJEKOVENDEN PUDUR COIMBATORE Coimbatore TamilNadu Pincode Factory Address Factory Door No 35/A Factory Street Factory Area Factory City Factory District Factory State VIVEKANANDA STREET NANJEKOVENDEN PUDUR COIMBATORE Coimbatore TamilNadu Factory Pincode Type of Industry EM no Manufacturing E

21 Product Name Consitution CNC TURNING CENTER Proprietary No of key persons involved 1 Key Person 1 Name of Business Enterprises : ASK ENGINEERING Title Name Father/Husband Name Selvan SANTHOSH KUMAR NANJAKUTTY Age 30 Address 7/22 JEEVA STREET URUMANDAMPALAYAM Personal Finance Permanent Account Number FILPS5822J Telephone number Do you have Bank account Yes Mobile number Bank name Axis Bank Ltd Educational background Bcom Branch SARKARSAMAKULAM Whether ration card available Yes Bank address DOOR NO.12/55 SATHYAMANGALAM ROAD SARKARSAMAKULAM Whether voter identity card available Yes Account number

22 Social status MBC Account type Savings Bank Employment of spouse Not employed IFSC code UTIB Qualification of spouse XII Std Credit card No Networth Statement Assets Immovable Properties( Including Land and Building ) (Rs.Lakhs) Investment in Business Capital 2.10 Deposits with Banks/institutions 0.00 Gsecs/Bonds/NSC/NSS 0.00 Shares/Debentures ( Market Value ) 0.00 Life Insurance Policies ( Surrender Value ) 0.00 Value of Vehicles ( Market Value ) 0.30 Other Assets ( Incl. Jewellery ) 0.00 Total Assets Liabilities 0.00 Loans Availed from Banks (Total Outstanding) 0.00 Other Liabilities 0.00 Total Liabilities 0.00 Networth Property Location URUMANDAMPALAYAM, G.N. MILLS POST, COIMBATORE

23 Name of Business Enterprises : ASK ENGINEERING Project Cost (Rs.lakhs) Land 0.00 Building 0.00 Plant and Machinery Imported 0.00 Indigenous Vehicles 0.00 Furniture and Fittings 0.00 Computers and office automation 0.00 Testing equipment 0.90 Other fixed assets 0.00 Erection/installation charges 0.00 Pre-operative expenses 0.00 Provision for contingencies 0.00 Working capital margin 0.59 Total Cost Means of finance Owners contribution 5.00% Owners contribution 2.07 Loan from bank/other institutions 39.42

24 Total Fullfillment of statutory requirements Name of Business Enterprises : ASK ENGINEERING Requirements 1.Approval from Local Authority / body 2.Approval for Building Plan 3.Approval from Inspector of Factories 4.Approval from Electricity Board 5.Have you obtained Import and Export Code? 6.Sales Tax Registration 7.Service Tax Registration 8.Pollution Control Board Clearence 9.Registeration for Partnership/Company/Co-operative Society Status Not Applicable Obtained Not Applicable Obtained Not Applicable To be Obtained To be Obtained Not Applicable Not Applicable Name of Business Enterprises : ASK ENGINEERING Personal strengths in the area of business I have 4 years of relevant experience. I have handled production in my previous assignment. None of my family members have experience in this business. The raw material required for the business are. Raw materials are available in the local market. The suppliers of the raw materials are TEXMO AND AQUASUB. The processes involved in manufacturing the final product are WE MAKE THE COMPONENT COMPLETE ACCORDING TO THE DIAGRAM PROVIDED BY THE SUPPLIERS USING THE CNC TURNING CENTER.. For this business skilled and semiskilled manpower are required. I am confident of having necessary manpower for the business. power requirement is 35 horse power per day. I do not have any backup. I require 100 liters of water. I have adequate facility to draw water. I have approval for the land and building. I conducted survey and based on the findings only and I am

25 trying to get into this business.the competitors in my district are SHANRAG MACHINE TOOLS, MARKS ENGINEERING and G-TEC. I will take 1 month to deliver the first order. I will get repeat orders from the following companies: TEXMO and AQUASUB. We expect an order size to the extent of Rs. 3 lakhs from them. The business potential for this product is growing at higher rate in India and growing at higher rate in exports. Name of Business Enterprises : ASK ENGINEERING Projected Profit & Loss Statement (Rs.Lakhs) Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019 Sales Other Income Closing Stock Total Income Raw Material Consumed Wages Power & Fuel Rent Other Manufacturing Costs Administration Expenses Selling & Distribution Expenses Excise Duty Depreciation Finance Charges Total Expenditure

26 Profit & Loss Projected Balance Sheet (Rs.Lakhs) Name of Business Enterprises : ASK ENGINEERING Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019 Capital Reserves & Surplus Loan from Bank Sundry Creditors Total Liabilities Fixed Assets Sundry Debtors Stock Loans & Advances Cash & Bank Balance Total Assets Projected Cash Flow Statement Name of Business Enterprises : ASK ENGINEERING Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019 Net Profit as per Tax Add: Depreciation

27 Add: Capital Contribution Add: Loan from Bank Add: Increase in Sundry Creditors Add: Decrease in Sundry Debtors Add: Decrease in Stock Total Inflow Less: Purchase of Fixed Assets Less: Repayment on Loan to Bank Less: Increase in Sundry Debtors Less: Decrease in Sundry Creditors Less: Increase in Stock Less: Loans & Advances Total Outflow Opening Balance Surplus/Deficit Closing Balance Ratios Name of Business Enterprises : ASK ENGINEERING Usual Norms Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019 Current Ratio >

28 Debt-Equity Ratio < Debt Service Coverage Ratio > TOL / TNW < Interest Coverage Ratio > Net Profit Margin(%) > Name of Business Enterprises : ASK ENGINEERING Interest & Loan Repayment Schedule (Rs.Lakhs) Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019 Opening Balance Receipt Total Repay Closing Balance Average Interest Working Capital (Rs.Lakhs) Name of Business Enterprises : ASK ENGINEERING Mar-2015 Mar-2016 Mar-2017 Mar-2018 Mar-2019 Stock Sundry Debtors

29 Loans & Advances Cash & Bank Balance Total Current Assets Sundry Creditors Salaries & Wages Power & Fuel Working capital

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