HRC FUSE LINKS

PRODUCT CODE : 77434

QUALITY AND STANDARDS : IS 13703: 1993

PRODUCTION CAPACITY : 3,00,000 Nos. (Per annum)

Value : Rs. 1,30,50,000/-

MONTH AND YEAR : May, 2014

OF PREPARATION

PREPARED BY : Sh. Sanjeev Kumar

Assistant Director (Electrical)

1. INTRODUCTION
HRC fuse link is a very common, simple and effective electrical protective
device against over load and short circuit current. It is so simple device that even an
unskilled person can handle it.

2. MARKET POTENTIAL
Every electrical establishment, factory, shops, offices etc. need electrical
protection devices for smooth running. Therefore, every electrical equipment need
over load protection. HRC Fuses are the reliable and cheap option. Because of
massive rural and urban electrification programme of Government, there is a good
demand for this product. This product is available in a wide range of rated capacity
as per customer’s requirement. Though, newly developed MCB is also available in
the market but in view of simple technology involved to manufacture this product
and for replacement, the present demand and future prospect of this product is
reasonably good.

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3. BASIS AND PRESUMPTIONS

i. The basis for calculation of Production Capacity has been taken on Single
Shift basis on 75% efficiency.
ii. 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 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 Equipment refer to a particular make/model and
the prices are approximate prevailing in 2014-2015.
vi. The breakeven point percentage indicated is of full capacity utilisation.
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 utilise common test facilities
available at Electronics Test & Development Centre (ETDCs), Electronics
Regional Test Laboratories (ERTLs), MSME Testing Centres (MSME-TCs) etc.

4. 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.

1. Preparation of Project Report : 1 Month

2. Registration & Other Formalities : 1 Month
3. Sanction of Loan by Financial Institutions : 3 Months
4. Plant/Machinery
a. Placement of Order : 1 Month
b. Procurement : 2 Months
c. Power Connection/Electrification : 2 Months
d. Installation/Erection of Machinery/Test Equipment : 2 Months
5. Procurement of Raw Materials : 2 Months
6. Recruitment of Technical Personnel etc. : 2 Months
7. Trial Production : 11th Month
8. Commercial Production : 12th Month

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NOTE:
Many of the above activities shall be initiated concurrently. Procurement of
raw materials commences from 8th month onwards. When imported plant &
machinery are required, the implementation period of the project may vary from 12
months to 15 months.

5. TECHNICAL ASPECTS

5.1. Process of Manufacturing

The final product HRC Fuses link is basically assembly of electrical
conducting and insulating components. The design of HRC Fuses link depends
upon rating of current and voltage to be handled. The components like Fuse
element to be designed in accordance to customer’s requirement. Other components
like Blades, Ceramic barrel, Ceramic base plate, Silica gel, End cover, Blown up
indicating & striking device and brass hard ware etc. are bought out components.
All these components are fixed at ceramic housing called barrel and contact
blade for connection to be made on it. Every step needs to be checked electrical
parameters before sub assembly. Complete assembly put on testing bench for final
testing to set accuracy of the HRC Fuses link. The routine tests are to be carried out
at every stage of assembly. Final product to be test as per relevant IS Specification.

5.2. Quality Control and Standards

As per IS Specification: IS 13703: 1993 (LV Fuses for voltages not exceeding
1000 V ac)

5.3. Production Capacity

Quantity : 3,00,000 Nos.
Value : Rs. 1,30,50,000/-

5.4. 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 Chloro fluoro Carbon
(CFCs), Carbon Tetrachloride, Halons 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.

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 HRC Fuse Links

The following steps may help control pollution in Electronics Industry

wherever applicable-
i. In Electronics Industry, fumes and gases are released during Hand
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 technologies. Numerous new fluxes
have been developed containing 2 - 10% solids as opposed to the traditional
15 - 35% solids.
ii. Electronics Industry uses CFCs, Carbon Tetrachloride and Methyl Chloroform
for cleaning of printed circuit boards after assembly to remove flux residues
left after soldering and various kinds of foams for packaging
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 Ketones and
Alcohol's are effective in removing both solder fluxes and many polar contaminants.

5.5. 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:
i. Adoption of energy conserving technologies, production aids and testing
facilities.
ii. Efficient management of process/manufacturing machinery and systems, QC
and testing equipment 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.
vi. Proper selection and layout of lighting system.
vii. Timely switching On-Off of the lights.
viii. Use of compact fluorescent lamps wherever possible etc.

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6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building: Built up area of 300 sq. yards on Rent.

6.1.1. Machinery and Equipments

(a) Production Unit
S. No. Description Qty. Rate Value (Rs.)
1. Pneumatic power press 10 Ton 1 1,75,000 1,75,000
2. Pneumatic power press 5 Ton 2 1,25,000 2,50,000
3. Spot welding Machine 1 45,000 45,000
4. Brazing Arrangement 1 15,000 15,000
5. Baking oven 1 75,000 75,000
6. Drill machine single / three phase 2 25,000 50,000
7. Taping machine, single /three phase 2 15,000 30,000
8. Grinding machine 4” wheel dia 1 20,000 20,000
9. Air compressor 150 Lb/cm2 1 65,000 65,000
10. Printing Machine 1 50,000 50,000
11. Soldring Arrangement 1 12,000 12,000
12. Bench vice 4 5,000 20,000
13. Hand Press 2 No. 2 30,000 60,000
Sub Total 8,67,000
(b) Testing Equipment
S. No. Description Qty. Rate Value (Rs)
1. Test Bench consisting with Ampere 1 30,000 30,000
meter, wattmeter, voltmeter, frequency
meter, variac Single phase/ 3 phase.
2. Megar 0-100 M Ohm 1 12,000 12,000
3. Stop Watch 0-60 minutes 1 2,000 2,000
4. H.V. Break down tester 0-3 KV 1 15,000 15,000
5. Shock Tester 1 4,000 4,000
6. Current injection set. 1 13,000 13,000
7. Temp.rise test set 1 6,000 6,000
8. Tongue tester 1 2,500 2,500
9. Multimeter 1 3,000 3,000
10. Double Kelvin Bridge 1 30,000 30,000
11. Fuse link Test rig 4 2,500 10,000
12. Loading Arrangement 1 4,000 4,000
13. Spring Balance 1 1,500 1,500
14. Veneer calliper/Micro meter 1 7,000 7,000
Sub Total 1,40,000

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6.1.2. Other Fixed Assets

Sl. No. Description Qty. Value (Rs.)
1. Dies, moulds and fixture LS 25,000
2. Cost of power connection and fixed deposit. LS 20,000
3. Installation & electrification charges @10% LS 1,00,700
4. Office equipments LS 25,000
5. Pre-Operatives Expenses LS 10,000
Total 1,80,700

Total Fixed Capital Rs. 11,87,700/-

6.2.Working Capital (per month)

6.2.1. Personnel
Salary/ Total
Sl. No. Designation Nos. Month Salary
(Rs.) (Rs.)
1. Manager (Self) 1 25,000 25,000
2. Tester/Q.C. Supervisor 1 20,000 20,000
3. Clerk Cum Accountant 1 12,000 12,000
4. Skilled Worker 3 12,000 36,000
5. Semi-skilled worker 2 10,000 20,000
6. Unskilled Worker 1 8,500 8,500
7. Peon cum Helper 1 8,500 8,500
Total 1,30,000
Pre requisites @ 15% of Total Salary 19,500
Total 1,49,500

6.2.2. Raw Materials (for 25,000 units)

Qty.
S.No. Description Rate Value (Rs)
(Set/No.)
1. Electroplated Copper Blade 50,000 4.00 2,00,000
2. Porcylain Brown Glaze Base 50,000 1.00 50,000
3. Electroplated Copper End Cover 50,000 4.00 2,00,000
4. Fuse Element 25,000 4.00 1,00,000
5. Ceramic Barrel 25,000 2.00 50,000
6. Silica gel Powder 25,000 1.00 25,000
7. Blown up indicating device 25,000 1.00 25,000
8. Copper/Brass Hardware 25,000 1.00 25,000
9. Mise. 25,000 0.50 12,500
Total 6,87,500

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6.2.3. Utilities
a) Power Rs. 20,000
b) Water Rs. 1,500
Total Rs. 21,500

6.2.4. Other Contingent Expenses

1. Rent Rs. 21,000
2. Postage & Stationery Rs. 1,000
3. Telephone/Telex/Fax charges Rs. 2,000
4. Repair & Maintenance Rs. 15,000
5. Transport and conveyance Charges Rs. 10,000
6. Advertisement/Publicity Rs. 3,000
7. Insurance and taxes Rs. 2,000
8. Miscellaneous Expenses Rs. 1,000
Total Rs. 55,000

Total Recurring Expenditure (per month) Rs. 9,13,500/-

6.3. Total Capital Investment

Total Fixed Capital Rs. 11,87,700
Total Working Capital (for 3 months) Rs. 27,40,500
Total Rs. 39,28,200

7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
1. Total Recurring Expenditure Rs. 1,09,62,000
2. Depreciation on Plant & Machinery @ 10 % Rs. 1,00,700
3. Depreciation on office equipment, furniture etc. @ 20% Rs. 5,000
4. Depreciation on tools jigs, fixtures etc @ 25% Rs. 6,250
5. Interest on total capital investment @ 12 % Rs. 4,71,384
Total Rs. 1,15,45,334
Say Rs. 1,15,45,000

7.2. Turnover (per annum)

Item Qty. (Nos.) Rate (Rs.) Value (Rs.)
Low Voltage Fuses For Voltages not
exceeding 1000 V AC or 1500 V DC 3,00,000 43.50 1,30,50,000
(HRC FUSE LINKS) 16 Amp.

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7.3. Net Profit (per annum)

= Turnover – cost of production
= Rs. 15,05,000/-

7.4. Net Profit Ratio

Net profit per year
= X 100
Turnover per year

= 11.5 %

7.5. Rate of Return

Net profit per year
= X 100
Total Capital Investment

= 38.3 %

7.6. Break-even Point

Fixed Cost per annum:
1. Depreciation on machinery & equipment @ 10% Rs. 1,00,700
2. Depreciation on office equipment, furniture etc. @ 20% Rs. 5,000
3. Depreciation on tools jigs, fixtures etc @ 25% Rs. 6,250
4. Interest on total capital investment @ 12% Rs. 4,71,384
5. Insurance + Rent Rs. 2,76,000
6. 40% of Salary & Wages Rs. 7,17,600
7. 40% of Other Contingencies (Excluding rent & insurance) Rs. 1,53,600
TOTAL Rs. 17,30,534

B.E.P
Fixed Cost
= X 100
Fixed Cost + Net Profit

= 53.5 %

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Additional Information:
i. The Project Profile may be modified/tailored to suit the individual
entrepreneurship qualities/capacity, production Programme and also to suit
the location wise characteristics, wherever applicable.
ii. The Electronics Technology is undergoing rapid strides of change and there is
need for regular monitoring of the national and international technology
scenario. The unit may, therefore, keep abreast with the new technologies in
order to keep them in pace with the developments for global competition.
iii. 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 and ISO 14001
defines standards for Environmental Management System for acceptability at
international level. The unit may adopt ISO 9000 standards for global
competition.
iv. The unit may contact the respective State Pollution Control Board and the
Central Pollution Control Board for guidance on Pollution Control measures.
v. Conservation of Energy is of national importance and the unit may strictly
adhere to the energy conservation measures.
vi. Prior to Registration with Director of Industries/Industries
Commissioner/Respective District Industries Centre, MSEs are required for
manufacturing the product.
vii. The percentage of margin money may vary as per bank's discretion.

ADDRESSES OF MACHINERY & EQUIPMENTS SUPPLIERS

S. No. Name & Address Name of machine/Raw Material
1. M/s. AUM Techno Ceramics HRC Fuse Barrel & Porcelain
Plot No.704/3 G.I.D.C. Estate V.U. Brown Glaze Base Plate/ Silica gel
Nagar-388121 Dist.: Anand Gujarat. Powder
2. M/s Ravikiran Ceramics Pvt. Ltd. HRC Fuse Barrel & Porcelain
Station Road, Kanjari-387325. Brown Glaze Base Plate/ Silica gel
Powder
3. M/s. Metal India, 4953, Sadar Bazar, Copper Sheet for Fuse Element
Tooti Chowk, Delhi-110006.
4. M/s.Wilson Engineering Industry, All Kinds of Copper & Brass
Basai Road, Gurgaon Hardware.
5. M/s. India Metal, 3633 Chawari Copper/Brass components
Bazar, Delhi-110006
6. M/s. Goyal Traders, 3877/1, Copper/Brass components
Charkhewalan Chawari bazar,
Delhi-110006

Testing Facilities Available: MSME - Testing Centre, New Delhi- 1100020

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