MSME-DI, KANPUR.

PROJECT PROFILE

ON

TRUCK BODY

NAME OF THE PRODUCT : TRUCK BODY.

PRODUCT CODE : .

QUALITY & STANDARD : The quality specification of the Truck Body depends
upon the type of commodity to be transported.

PRODUCTION CAPACITY : The production capacity of the unit at 100% capacity

utilisation.

Quantity - 72 Nos. Per Annum.

Value - Rs. 2,30,40,000/-

MONTH & YEAR OF : May, 2012.

PREPARATION

PREPARED BY : MSME Development Institute,

Ministry of Micro, Small & Medium Enterprises,
Government of India
107, Industrial Estate, Kalpi Road,
Kanpur-208012.
Tele: 2295070, 2295071 & 2295073 (EPBAX)
Tele. No. 2295072 (SENET & TRC)
Tele/Fax No.: 0512- 2240143
Email: dcdi-kanpur@dcmsme.gov.in
Website: msmedikanpur.gov.in
 MSME-DI, KANPUR.

PROJECT PROFILE

ON

TRUCK BODY

1. INTRODUCTION:

India has predominantly an agricultural economy due to variable climate

condition in different parts of the country; the production of various agricultural products
is non uniform. India is one of the major producers of fresh fruits & vegetables to the
tune of 100 million tons. The major quantities of these perishable items are produced in
rural and backward areas of the country and their consumption is centered in and
around big cities & towns. Transportation of these commodities from place of
abundance to places of consumptions or to export points like Seaports. Trucks or vans
play an important role for transportation of these items between places connected by
roads.

2. MARKET POTENTIAL:

The continuous increase in consumption of these perishable commodities has

necessitated the growing demand of trucks for internal distribution of these commodities
to different points connected by the vast road network. Transportation of these can be
undertaken with by trucks.
 MSME-DI, KANPUR.

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3. BASIS & PRESUMPTIONS:`

1. The scheme has been prepared on a single shift basis of 8 hours working per day
and 300 working days per year.
2. The capacity utilisation of the unit has been taken as 75% for the first year and
100% onwards.
3. Promoter’s contribution towards margin money is taken as nil.
4. Interest is calculated both on fixed and working capital at a simple rate of 15%.
5. Rate of machinery and equipment, raw material and other items are based upon
the prices prevailing at the time of preparation of project profile.
6. Break even point is calculated at 100% capacity utilisation.
7. Provision for future expansion of the unit in general body building of vehicles and
for servicing can also be undertaken.
8. Working capital is calculated on the basis of working capital cycle of 3 months.
9. The cost of building bodies on chassis of the truck is only considered on the project
profile, not the cost of the chassis of the truck

4. IMPLEMENTATION SCHEDULE:

The major activities in the implementation of the project have been listed and the
estimated average time for implementation of the project is indicated for
12 months.

(Period in week)
1. Preparation of project profile
a) Calling of quotations 4
b) Preparation 2

2. EM-I Registration as MSME & other formalities 1

3. Sanction of loan by financial institutions 12
4. Registration of land and site development 4
5. Construction of Workshop & Office Building. 8
6. Purchase & Procurement of machinery and equipment 6
7. Erection and Electrification 3
8. Recruitment of personnel. 4
Total: 46 weeks
 MSME-DI, KANPUR.

Technical Aspects:

1) Process of Manufacture:

The process of building the body of the truck is mainly by fabrication. The outer
cabinet of the body is fabricated out of cold rolled steel sheets of 8 SWG with
reinforced by steel channels and bars.

2) Production Capacity:

It is proposed to build 72 Nos. of Trucks. The space of each of 18’X8’X8’ capacity

and an annual turn over of Rs.2,30,40,000/-

3) Quality Control & Standards:

The quality of truck’s body depends upon the type of commodities to be transported.

4) Pollution Control

The unit should be situated away from the locality in order to avoid noise pollution.
Except noise, the unit makes no other pollution.

5) Energy Conservation

A capacitor circuit can be incorporated in the electricity supply network for

improvement of power factor.
 MSME-DI, KANPUR.

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Financial Aspects:
Fixed Capital:

a) Land & Building:

i. Land 1000 sq. mtr. @ Rs.1200/- sq. mtr. 12,00,000/-

ii. Land development charges @ Rs.200/- sq. mtr. 2,00,000/-
iii. Workshop Shed & Office Building 200 sq. mtr. @ Rs.6000/- sq. mtrs. 12,00,000/-
Total: Rs. 26,00,000/-

b) Machinery & Equipment:

Sl. Particulars of Machines Qty. Rate Amount
No (Nos.) (Rs.) (Rs. Lakh)
1. Arc Welding Transformer 5 Phase, Oil Cooled 2 50000/- 1,00,000/-
2. Portable Spot Welding Gunnies 2 42000/- 84,000/-
3. D.E. Bench Grinder 8” wheel dia 1 20000/- 20,000/-
4. Electric Heavy Duty Portable Shear Machine 2 10000/- 20,000/-
5. Universal Sheet worker with AC/440/3/50 Electric 2 36,000/- 72,000/-
Motor and Starter.
6. Universal Hand Shearing Machine 1 16,000/- 16,000/-
7. Bending Machine hand operated heavy duty 1 100000/ 1,00,000/-
general bending rollers -
8. Air Compressor 5 HP double cylinder, normal 2 50000/- 1,00,000/-
pressure 10 PSI , max. tank pressure 170 PSI
9. Pneumatic riveting hammer 3 12,000/- 36,000/-
10. Pneumatic Chipping Hammer 3 8000/- 24,000/-
11. Pneumatic Portable Shear 2 20000/- 40,000/-
12. Pneumatic portable air saw 3 10000/- 30,000/-
13. Pneumatic Portable Drills 3 24000/- 72,000/-
14. Hydraulic Pipe Bender 1 36000/- 36,000/-
15. Spray Gun 2 4000/- 8,000/-
16. Handling equipment LS 50,000/-
17. Hand Tools LS 60,000/-
18. Erection & Electrification LS 60,000/-
19. Office Furniture & Equipment LS 50,000/-
20. Miscellaneous equipment LS 40,000/-
Total: 10,18,000/-

c) Pre-operative Expenses:
Fees for preparation of project report & Rs. 50,000/-
deposit for Electricity Connection etc.

Total Fixed Capital:

26,00,000 + 10,18,000 + 50,000 = Rs. 36,68,000/-
 MSME-DI, KANPUR.

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Working Capital:
a) Personnel/Staff Salary (P.M.):
Sl. No. Designation No. Total (Rs.)
1. Manager 1 20,000/-
2. Designer Engineer 1 16,000/-
3. Supervisor 1 10,000/-
4. Accountant 1 8,000/-
5. Skilled Workers 5 40,000/-
6. Semi Skilled Workers 3 18,000/-
7. Clerk/Store Keeper 1 8,000/-
8. Helper/Watchman 2 10,000/-
Total: 1,30,000/-
Additional perquisites @ 15% 19,500/-
Total: 1,49,500/-
Say; 1,50,000/-

b) Raw Material(P.M.) :
The approximate calculation of raw material for body of truck.
Sl. Item Qty. Rate Value (Rs.)
No. (Rs.)
1. C. R. Sheet 8 SWG 1200 sq. ft. 500/- sq. ft. 6,00,000/-

2. M. S. Sheet 14 – 16 SWG 6 Tons 64000/-Ton 3,84,000/-

3. Wood Strips L.S. 1,00,000/-
4. Nuts & Bolts L.S. 16,000/-
5. Channels 2 Ton 60000/- 1,20,000/-
6. Miscellaneous 50,000/-
Total: 13,70,000/-

c) Utilities (P.M.) :

i. Power 3000 units @ Rs.8/- per unit 24,000/-

ii. Water 500/-
Total: - 24,500/-
d) Other Contingent Expenses (P.M.):
1 Postage & Stationery 1,000/-
2 Telephone 1,000/-
3 Repair & Maintenance 10,000/-
4 Transportation 10,000/-
5 Advertisement & Publicity 2,000/-
6 Insurance. 2,000/-
7 Miscellaneous Expenses 4,000/-
Total: 30,000/-
 MSME-DI, KANPUR.

e) Total Recurring Expenditure (P.M.):

1. Personnel 1,50,000/-
2. Raw Materials 13,70,000/-
3. Utilities 24,500/-
4. Other Contingent Expenses 30,000/-
Total: 15,74,500/-

Therefore Working Capital for 3 months 15,74,500 X 3 = Rs. 47,23,500/-

TOTAL CAPITAL INVESTMENT:

Fixed Capital 36,68,000/-
Working Capital on 3 months basis 47,23,500/-

Total: Rs. 83,91,500/-

FINANCIAL ANALYSIS:

(i) Cost of Production (Per annum)

Value(Rs.)
i. Total Recurring Cost of Production 1,88,94,000/-
ii. Depreciation on Building @ 5% 60,000/-
iii. Depreciation on machinery and equipment @ 10% 84,800/-
iv. Depreciation on Machine and Equipments @ 25% 42,500/-
v. Interest on investment @ 15% 12,58,722/-
Total: - 2,03,40,022/-

(ii) Turnover (Per annum)

Item Value (Rs.)

Truck Body – 72 Nos. @ 3,20,000/- each 2,30,40,000/-
Total: 2,30,40,000/-
 MSME-DI, KANPUR.

(iii) NET PROFIT (Per annum) Before Taxation:

Turn Over (-) Cost of Production

2,30,40,000/- (-) 2,03,40,022/- Rs. 26,99,978/-

(iv) NET PROFIT RATIO (Per Annum):

Profit/annum X 100 26,99,978/- X 100

Turnover/Annum 2,30,40,000/- = 11.72%

(v) RATE OF RETURN (Per Annum):

Net Profit/annum X 100 26,99,978/- X 100

Total Capital Investment 83,91,500/- = 32%

(vi) BREAK EVEN POINT

Fixed Cost:

1. Depreciation on Building, Machinery, Equipment, Rs. 1,87,300/-

Handling Equipment, Hand Tools & Office Furniture
2. Insurance Rs. 24,000/-
3. Interest on Total Investment Rs. 12,58,722/-
4. 40% of salary & wages Rs. 1,80,000/-
5. 40% of other expenses Rs. 36,000/-

Total:- Rs. 16,86,022/-

BEP:

Fixed Cost X 100 16,86,022 X 100

Fixed Cost + Profit 16,86,022 + 26,99,978 = 38.44%
 MSME-DI, KANPUR.

Additional Information:

a. The project profile may be modified/tailored to suit the individual entrepreneurship

qualities/capacity, production programme and also to suit the locational characteristics,
wherever applicable.
b. Quality today is not only confined to the product or service alone. It also extends to the
process and environment in which they are generated. The ISO-9000 defines standards for
quality management systems for acceptability at international level. The unit may adopt
ISO-9000 standards for global competition.
c. The unit may contact the respective State Pollution Control Board and the Central Pollution
Control Board for guidance on pollution control measures.
d. Conservation of energy is of national importance and the unit may strictly adhere to the
energy conservation measures.
e. Prior SSI registration with Director of Industries/Industries Commissioner/ Respective District
Industries Centre is required for manufacturing the product.

Names & Address of Machinery & Equipment Suppliers:

1. M/s Essential Machine Tools Pvt. Ltd.,

5, Nyayamurti G. N. Vaidya Marg, (Bank Street)
P.O. Box No.2, Behind State Bank of Fort,
Mumbai-400001.

2. M/s N. V. Industries Pvt. Ltd.,

Sudha Park-1, Raja S. C. Mullick Road,
Kolkata-700086.

3. M/s Machine tools Traders,

218, Linghi Chetty Street, P.O. Box No. 1260,
Chennai-600001.

4. M/s Quality Machine Tools, 25, Amsala Doshi Marg,

Fort, Mumbai-400025.
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PSB*May 2012*