Entrepreneurship Project: Ice plant
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Entrepreneurship Project: Ice plant
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Entrepreneurship Project: Ice plant
INSTITUTE OF TECHNICAL EDUCATION AND RESEARCH BHUBANESWAR
DEPARTMENT OF APPLIED ELECTRONICS & INSTRUMENTATION ENGINEERING ACKNOWLEDGEMENT
We take this opportunity to express our hearty thanks to all those who individually as well as collectively helped us in the successful completion of this project. We are thankful Mihir Mohanty, H.O.D, Department of AE & I engin engineer eerin ing g and also also thank thankful ful to all all the facul faculti ties es of ITER ITER college For having permitted us to carry out this project and for their constant advice.
We also acknowledge the continuous encouragement rendered by our friends.
Group members Regd. No. 1. CHETAN DAS …………………………………………………………… 0601212524 2. SWAPNA SOURAV ROUT …………………………………………………………..... 0601212531 3. SARIT KUMAR SI …... ……………………………………………………..0601212533 4. JAYANT KUMAR MUDULI ….. ………………………………………………………0601212514
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Entrepreneurship Project: Ice plant 5. SOURAV PRASAD KANUNGO ……. …………………………………………………0601212527 6. MANAS RANJAN BISWASRAY ………………………………………………. ………0601212529
Contents: 1.
INTRODUCTION OF ENTREPRENURSHIP
2.
CONCEPT AND DEFINATION
3.
ENTREPRENEURIAL PHILOSOPHY
4.
EXPECTATIONS OF ENTREPRENEURSHIP
5.
CHARACTERISTICS OF ENTREPRENEUR
6.
CHALLENGES FOR ENTREPRENUERSHIP PROJECT
7.
SUMMARY
8.
PROJECT PROFILE
9.
INTRODUCTION
10.
MARKERPOTENTIAL
11.
TECHNICAL ASPECT
12.
FINANCIAL ASPECT
13.
WORKING CAPITAL ANALYSIS
14.
CAPITAL INVESTMENTS
15.
COST OF PRODUCTION
16.
TURN OVER PER YEAR
17.
BREAK EVEN ANALYSIS
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Entrepreneurship Project: Ice plant 18.
CONCLUSION
19.
BIBLIOGRAPHY.
PREFACE During final semester of B.TECH in AE&I ENGINEERING as a curriculum assignment has to be taken as an entrepreneurship project. Our entrepreneurship project is to “establish an ice plant based upon the peripheral market demand of Bhubaneswar”. A complete task of starting from the concept analysis of project preparation, the entire has been done under the guidance of our project guide Er. B.P.MISHRA.
Our entrepreneurship project is associated with establishment of an ice plant basing upon the market demand for different purposes. Though Orissa is on the way of industrialization, emphasizing on establishing a ice plant unit will be a profitable aspect for entrepreneurs. Same time this will be helpful for socioeconomic reformation for economically backward Orissa.
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Entrepreneurship Project: Ice plant While preparation of this project every care has been taken to avoid any mistakes & errors. Some errors might have crept in advertently.
INTRODUCTION of ENTREPRENEURSHIP Do you know that there are millions of unemployed youth in the country and the time you graduate, this number would have increased substantially? Do you want to be part of that group which keeps knocking from pillar to post, checking with employment exchanges, relatives, friends, and neighbours and still not able to get a job to their liking and then settle for a second or third rate job? You can also choose to be like Mr. Patel of Nirma who was a chemist’s assistance and has a Rs. 2500 crore company today. Did you know that the original Mr. Bata was a cobbler? And now has stores in more than 30 countries all over the world. Or you could be like Dhiru bhai Ambani who started life as a clerk in a French company in Aden. He was not born into a business Ice plant Page 6
Entrepreneurship Project: Ice plant family nor did he possess an MBA degree and yet, he is a household name in India and figures in2 the Forbes list of the richest Asians. Lakshmi Mittal, the steel giant, Satbir Bhatia of Hotmail fame and Narayan Murthy of Infosys are some other names in the endless list you could choose from. If your answer is yes then you can definitely opt for a career in entrepreneurship. The word entrepreneur has its origin in the French language. It refers to the organizer of musical or other entertainments. An entrepreneur can be described as a creative and innovative response to the environment. such responses can take place in any field of social endeavour business, agriculture, social work the like. an entrepreneur is one who can organizes, manages and assumes the risk of an enterprise. An entrepreneur visualizes a business, takes bold steps to establish undertaking, coordinates the various factors of production gives it a start. Entrepreneur is the owners of the business who contribute the capital and bear the risk of uncertainties in business life. Entrepreneur is action orientated and highly motivated person who has ability to evaluate business opportunity, together the necessary resources, to take advantage of that and to intimate appropriate action to ensure success. Entrepreneur is associated with innovation. He is the main factor of production. An entrepreneur is a person who starts an enterprise. He searches for change and responds to it. A number of definitions have been given of an entrepreneur-The economists view him as a fourth factor of production along with land labour and capital. The sociologists feel that certain communities and cultures promote entrepreneurship like for example in India we say that Gujaratis and Sindhis are very enterprising. Still others feel that entrepreneurs are innovators who come up with new ideas for products, markets or techniques. To put it very Ice plant Page 7
Entrepreneurship Project: Ice plant simply an entrepreneur is someone who perceives opportunity, organizes Resources needed for exploiting that opportunity and exploits it. Computers, mobile phones, washing machines, ATMs, Credit Cards, Courier Service, and Ready to eat Foods are all examples of entrepreneurial ideas that got converted into products or services.
CONCEPT AND DEFINITIONS So let us see- is setting up one’s business that simple and easy or is there more to it. In order to know what being enterprising is all about we need to understand the following terms- Entrepreneur, Entrepreneurship, and Enterprise.
1-ENTREPRENEUR An entrepreneur is a person who starts an enterprise. He searches for change and responds to it. A number of definitions have been given of an entrepreneur-The economists view him as a fourth factor of production along with land, labour and capital. Entrepreneurs are innovators who come up with new ideas for products, markets or techniques. To put it very simply an entrepreneur is someone who perceives opportunity, organizes resources needed for exploiting that opportunity and exploits it. A person who takes the initiative in combining land, labour and capital, the three fundamental factors of production, to produce a good or service. Computers, mobile phones, washing machines, ATMs, Credit Cards, Courier Service, and Ready to eat Foods are all examples of entrepreneurial ideas that got converted into products or services. Ice plant Page 8
Entrepreneurship Project: Ice plant
2-ENTREPRENEURSHIP Entrepreneurship can be described as a process of action, an entrepreneur undertakes to establish his enterprise. Entrepreneurship is a creative activity. It is the ability to create and build something from practically nothing. It is a knack of sensing opportunity where others see chaos, contradiction and confusion. Entrepreneurship is the attitude of mind to seek opportunities, take calculated risks and derive benefits by setting up a venture. It comprises of numerous activities involved in conception, creation and running an enterprise. According to Peter Drucker Entrepreneurship is defined as ‘a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation.’ Entrepreneurship is a discipline with a knowledge base theory. It is an outcome of complex socio-economic, psychological, technological, legal and other factors. It is a dynamic and risky process. It involves a fusion of capital, technology and human talent. Entrepreneurship is equally applicable to big and small businesses, to economic and non-economic activities. Different entrepreneurs might have some common traits but all of them will have some different and unique features. If we just concentrate on the entrepreneurs then there will be as many models as there are ventures and we will not be able to predict or plan, how and where, and when these entrepreneurs will start their ventures. Entrepreneurship is a process. It is not a combination of some stray incidents. It is the purposeful and organized search for change, conducted after systematic analysis of opportunities in the environment.
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Entrepreneurship Project: Ice plant Entrepreneurship is a philosophy- it is the way one thinks, one acts and therefore it can exist in any situation be it business or government or in the field of education, science and technology or poverty alleviation or any others.
3-ENTERPRISE Entrepreneur is a person who starts an enterprise. The process of creation is called entrepreneurship. The entrepreneur is the actor and entrepreneurship is the act. The outcome of the actor and the act is called the enterprise. An enterprise is the business organization that is formed and which provides goods and services, creates jobs, contributes to national income, exports and overall economic development.
FUNCTIONS OF ENTREPRENEUR An entrepreneur frequently has to wear many hats. He has to perceive Opportunity, plan, organize resources, and oversee production, Marketing and liaison with officials. Most importantly he has to Innovate and bear risk. The main functions of an entrepreneur are as Follows:
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Entrepreneurship Project: Ice plant Innovation: Innovation is one of the most important functions of an Entrepreneur according to Schumpeter. An entrepreneur uses Information, knowledge and intuition to come up with new products, new methods of reducing costs of a product, improvement in design or function of a product, discovering new markets or new ways of organization of industry. Through innovation, an entrepreneur converts a material into a resource or combines existing resources into new and more productive configurations. It is the creativity of an entrepreneur that results in invention [creation of new knowledge] and innovation [application of knowledge to create new products, services or processes.] 1.
Risk and uncertainty bearing: According to Hozelist an entrepreneur performs the function of risk and uncertainty bearing. Every decision pertaining to development of new products, adapting new technologies, opening up new markets involves risk. Decision-making in an environment of uncertainty requires anticipation of risk. Profit is said to be the reward for anticipating and taking such risks. However it is pertinent to mention that the entrepreneur is not a gambler, he only takes calculated risks. An entrepreneur develops the art of decision-making under conditions of uncertainty as a matter of survival. 2.
Organization building: An entrepreneur has to organize men, Material and other resources. He has to perform the functions of Planning, co-ordination and control. He has to use his leadership Qualities to build a team, generate resources and solve problems. With his organizational skills an entrepreneur builds an enterprise from scratch, nurtures it and makes it grow. 3.
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Entrepreneurship Project: Ice plant His vision sows the seeds for a sound and vibrant organization and synergies are built in the enterprise. According to Kilby in a developing country even the imitator entrepreneurs are very important and the entrepreneurial role encompasses the following: I.
Perception of market opportunities
II.
Gaining command over scarce resources
III.
Purchasing inputs
IV.
Marketing the products
V.
Dealing with bureaucrats
VI.
Managing human relations within the firm
VII.
Managing customer and supplier relations
VIII.
Managing finance
IX. X. XI. XII.
Managing production Acquiring and overseeing assembly of the factory Industrial engineering Upgrading process and product
XIII. Introducing products
new
production
techniques
and
Entrepreneurial philosophy
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Entrepreneurship Project: Ice plant Entrepreneurial philosophy: 1.
To take calculated risk.
2. Willingness to accept responsibility for one’s own work. 3. Failure experience. 4.
must
accepted
as
a
learning
are
important
Goal oriented.
5. Acceptable perfect results. 6.
be
results
more
than
Personal growth.
Expectations of entrepreneurship
Expectations of entrepreneurship: It is expected from entrepreneurs that they will help :1.
Increase number of industries
2.
Increase production.
3.
Increase employment
4.
Earn foreign exchange through exports
5.
Develop the underdeveloped parts of the country
6.
Economical development
Characteristics of entrepreneur Ice plant Page 13
Entrepreneurship Project: Ice plant
Characteristics of entrepreneur: 1.
Task-result oriented
2.
Risk taker
3.
Leadership
4.
Self confidence
5.
Originality
6.
Future oriented
Challenges of the entrepreneurship project Challenges the entrepreneurship project:Technology up gradation: - it is found that our small scale sector is not able to compete because of outdated technology. We must appreciate that small scale industry has to keep itself updated and then only it can sell goods anywhere in the world as there is no restriction for goods to move. People will purchase only if goods are of high quality. We must remember that we may or may not need imported technology for up gradation. Our small industries have the advantage of developing import substitution period. Many SSI can therefore become world-class with only small modification or improvement. 1.
Testing facilities: - because of small scale industries are situated in far flung areas therefore it is not possible to service by one or two central laboratory. We suggest that educational institution even in small 2.
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Entrepreneurship Project: Ice plant towns should be equipped to provide testing facilities to small scale industries.
Exports: - we find that small industries engaged exports do not we have any benefits, although they count for bulk export. We strongly advocate special concessions for small scale industries which are engaged in exports. 3.
Involvement of industrial associations: - we feel that many problems of small scale can be taken care of industrial association are involved in a big way. 4.
Infrastructure development: - we small suffer maximum from lack of infrastructure development. The quality of power is bad and the power available is very high in cost. This must be corrected. Roads are bad. Communication facilities are not upto the mark. 5.
Credit: - the credit is still not available in small scale industries; the credit guarantee fund created by SIDBI is not being exploited as there is still short coming in the scheme. 6.
Skill up gradation: - small scale industries are known for providing on job training. But in post WTO era when cost cutting is the order of the day, the people are running small scale industries must be skilled and this skill must be up graded continuously so that they are in the job and no unemployment results. 7.
Marketing:- the present market assistant scheme is most welcome. More such schemes are require. Small scale industries are being bundled out of the market by aggressive advertisement done by industries and multi nationals. 8.
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Entrepreneurship Project: Ice plant Changing the labour laws: - The present labour laws must be changed to have more flexibility and the suitability for running a small scale sector. 9.
Removal of inspector raj:- a small scale industry generally a single man soul. He cannot find time to attend all the inspectors visiting a small scale factory. The inspector raj must be finished. 10.
Conclusions can be taken considering above challenges. SSI units in the following areas will have a bright future and compete with the world class industries as these are the area of our strength. 1.
Tourism and hotel industry
2.
Dairy industry
3.
Food processing industry
4.
Shoe and leather industry
5.
Forging unit
6.
Steel alloy casting
7.
Plastic processing industry
SUMMARY In recent decades the role of an entrepreneur has been considered of very great significance in accelerating the pace of growth and economic development in both the developed and developing countries. An entrepreneur is a person who perceives opportunities, organizes the resources needed to exploit the opportunity and sets up an enterprise. The process of setting up an enterprise is called entrepreneurship.
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Entrepreneurship Project: Ice plant An enterprise is a business venture. It is an undertaking that involves uncertainty and risk as well as innovation. An individual has the right to choose any income generating activity or self-employment or entrepreneurship as a career option. Functionally income generating and self-employment activities are the initial sages of entrepreneurship. Entrepreneurship is a discipline with a knowledge-based theory. A person can learn and acquire the competencies of becoming an entrepreneur and start a venture and make it grow. So the myth that entrepreneurs are born and not made can safely be dispelled.
PROJECT PROFILE
PRODUCT: ICE PLANT/ICE BLOCK
PRODUCTION CAPACITY Ice plant Page 17
Entrepreneurship Project: Ice plant Ice block of 120 kg, 60 no. of ice blocks/day 7.2 tonnes in every 24 hours (or per day) @ M.C (Manufacturing Cost) Rs. 1.03/kg. for first 5 years and Rs. then 0.65/kg @ S.P (Selling Price) Rs. 1.80/kg. Annual production 2600 tonnes, sale = Rs 1.80 x 2600 x 1000
Annual sale = Rs. 46,80,000
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Entrepreneurship Project: Ice plant
INTRODUCTION:
Water when made into solid mass by the action of cooling is known as Ice. It is one of the essential modes for short term preservation of highly perishable commodities such as marine foods, fresh meat and poultry products, dairy products, fruits and vegetables. These goods can be stored for two to three days with ice which facilitates the transportation of these foods to the consumer market. Ice is also used in the chemical, pharmaceutical, canning and freezing industries. It is being used for chilling synthetic fruit beverages.
The complete ice making plant consists of: •
•
•
•
•
•
Ammonia Compressors Condensers / Heat Exchangers Ammonia Receiver Cooling Coil / Evaporator Chilling Tank Paneling (Electrical Equipments)
Ammonia Compressors: Ammonia compressors designed with state-ofthe-art technology for industrial & commercial refrigeration and low temperature applications. Compressors are V belt driven and are suitable to operate with Ammonia (NH3) & Freon [12 (CCl2F2), 22 (CHClF2)] as refrigerant. Robust construction, excellent performance and power saving features and hallmarks of the products. •
•
•
Condensers / Heat Exchangers: Ice plant Page 19
Entrepreneurship Project: Ice plant Condenser is a heat transfer surface, generally which are divided in to three types. Air Cooled Condenser: Employ air as the condensing medium. Water Cooled Condenser: Utilize water to condense the refrigerant. Evaporative Condenser: Use both air and water as the condensing medium. The function of the air is to increase the rate of evaporation by carrying away the water vapor results from evaporation process. •
•
•
Ammonia Receiver: Ammonia receiver can control the supply and demand relation between the condensers and the evaporator, prevent excessive liquid ammonia from staying in the condenser, and maintain a certain level in the liquid receiver to prevent gas from going into the liquid pipe line. The ammonia in the system can be stored in the ammonia receiver to avoid loss of the ammonia before the refrigerating system is repaired. Therefore, the volume of the ammonia storage should be considered before buying it. •
•
Cooling Coil / Evaporator: Cooling Coil / Evaporator is used as heat transfer surface in which a volatile liquid is vaporized for the purpose of removing heat from refrigerated space. V shape cooling coils are available in different sizes, usually custom made to the individual applications. •
•
Chilling Tank: Chilling Tank consists of three parts: 1) Ice Tank Ice plant Page 20
Entrepreneurship Project: Ice plant 2) Insulation of Ice Tank 3) Ice Block Ice Tank: Ice tanks are made of such material as wood, steel or concrete. As wooden tanks do not last long enough and are liable to leak, they should preferably be made of steel well coated with waterproof paint. Tanks made of reinforced concrete are also recommended as superior to those of wood. •
The ice tank contains the direct expansion coils, equally distributed throughout the tank and these coils are submerged in brine. The tank is provided with a suitable frame of hard wood for support the ice cans and a propeller or agitator for keeping the brine in motion: the brine in the tank acts as a medium of contact only, the ammonia evaporating in the ice coils extracts the heat from the brine, which again absorbs the heat for the water in the cans. The tank itself should not be much larger than is necessary to hold the cans, the coils, and the agitator. About two inches should be left between the moulds and three inches between the pipes and the moulds. Insulation of Ice Tank: Insulation of the ice tank is accomplished by using twelve to eighteen inches of good insulating material on each of the sides and not less than twelve inches under the bottom. Ice Block: Commercial sizes of Ice cans vary with the weight of ice cakes required. The cans are made to contain about 5% more than their rated capacity to compensate for thawing. •
•
Dimensions Gauge Gauge Size of Size of Plain or Weight Weight of Steel, of Steel, Ice Width Length Height Band Grooved Galv. per Can Galv. per Can 50
6
12
28
1.5
Plain
18
25
-
-
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Entrepreneurship Project: Ice plant 50
8
8
31
1.5
Plain
18
25
-
-
100
8
16
32
1.5
Plain
16
36
-
-
300
11
22
48
1.5
Grooved
16
72
14
88
300
11
22
49
1.5
Grooved
16
74
14
90
300
11
22
50
1.5
Grooved
16
75
14
91
300
11.5
22.5
44
1.5
Grooved
16
69
14
84
300
11.5
22.5
46
1.5
Grooved
16
72
14
88
300
11.5
22.5
47
1.5
Grooved
16
73
14
89
400
11
22
63
2
Grooved
14
113
12
153
400
11.5
22.5
57
2
Grooved
14
106
12
146
Paneling (Electrical Equipment s): The Ice making plant must be furnished with electrical control panel with compressor starter, all necessary safety switches and pressostats , Voltmeter, Ammeter, Temperature Sensor etc.
APPLICATIONS: Ice Making plants are used in different applications like : •
•
•
•
Fisheries Hospital Chemical Pharmaceutical
MARKET POTENTIAL MARKET POTENTIAL: Except for upper middle class and rich households who own refrigerators, there is hardly any households who are not using ice during summer season in one form or other. It is also used by the tea stalls, hoteliers, restaurants, clubs and industrial houses for storage and chilling purpose. In short, it is being used extensively in all urban areas, small Ice plant Page 22
Entrepreneurship Project: Ice plant towns or even villages. It is also used for preservation of fish and other marine products. All over the country the ice is used and in every state there are a good no. of Ice plants. Ice plants have more scope in fish catching areas.
BASIS AND PRESUMPTION: 1. Eight working hours per day and 360 days per annum has been considered for preparation of the scheme. 2. 80% of the maximum capacity utilization of machinery has been considered. 3. The cost of land and building and machinery are taken as per the requirement of the entrepreneur. 4. Rate of interest has been considered as 12.5% per annum.
IMPLEMENTATION SCHEDULE: The time required for completing each activity of the project will be as follows: 1. Project report preparation, selection of site And provisional registration as SSI months
3
2. Arrangement of land, selection of machines, Approval of loan, placement of order for machinery 3 months 3.
Land development, procurement of machinery 3 months
4.
Erection and commissioning, trial, production production 3 months
and
then
commercial
production
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Entrepreneurship Project: Ice plant
TECHNICAL ASPECT 1. Process of Manufacture: The process of manufacturing Ice is very simple. The Ammonia or Freon gas coming from the cooling coil at low temperature and pressure is compressed into liquid and is passed through the cooling coils fixed in the freezing tank. Due to the low boiling point of Freon/Ammonia it changes its state from liquid to vapour and is condensed inside the condenser. The tank contains brine of 30% salt. The cold brine is circulated by agitation to maintain uniform temperature throughout the tank. The brine temperature is considerably reduced to 15oF. This takes about 24 hours. After the brine reaches the operating temperature, the ice cans are filled with the water and are immersed inside the brine tank in such a way that the level of the brine remains below the level of the top of the Ice can. Due to the high freezing point of water comparing to brine, the water in the can is solidified at 30oF to form ice. To get solid clear ice, a small quantity of air is passed into the cans. It takes about 18 hours to freeze a 50 kg. can, 24 hours to freeze 70 kg. and 48 hours to freeze 140 kgs.
2. Quality Control Standard: As per ISI specification No.IS:3957. 3. Production capacity (Per Annum): Ice plant Page 24
Entrepreneurship Project: Ice plant Ice block of 120 kg, 60 no. of ice blocks/day 7200 kg in every 24 hours (or per day) @ M.C (Manufacturing Cost) Rs. 1.03/kg. @ S.P (Selling Price) Rs. 1.80/kg. Annual production 2600 tons, sale = Rs 1.80 x 2600 x 1000
Annual sale = Rs. 46,80,000
4. Pollution control: As this product is manufactured from water there is no pollution problem involved.
5. Motive Power requirement: H.P. required: 50 HP.
FINANCIAL ASPECT 1. Land: 20,000 sq.ft. @ Rs.175/Sq.ft 32,00,000 Shed area: =10,50,000/-
3,000
Boring with waterpump Overhead tank 10,000
sq.ft
@
= Rs.
350/sq.ft =80,000/=
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Entrepreneurship Project: Ice plant Total = 43,40,000/2. Plant and Machinery (with installation charges):
S.n o
Description
Qty.
Value
SECTION ‘A’ : 1.
2.
3.
Kirloskar make Ammonia Two compressor Model KC-3 with accessories as suction and discharge and oil pressures gauges “V” belts, motors pully shide rails and foundation incharge bolts
3,00,000/p er
75 HP Motor, make Kirloskar of Two GFC slip ring, 1440 RPM 3 phase, 50 cycle 400/440 volts, A/c supply each will be supplied by us.
80,000/per
75 HP, MEI or Kilborn or OCB or Two BEE make oil immersed stater suitable for the above motor will be supplied by us
= 6,00,000/-
= 1,60,000/25,000/per = 50,000/-
4.
Oil separator made of 10 or 12 One mm x 16” dia x 4’ length sheet or seamless pipe complete with all its fittings, etc. will be supplied by us
10,000/-
5.
Atmospheric type condensor Eight
2,00,000/-
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Entrepreneurship Project: Ice plant each set consisting of 12 pipes x sets 20’ long x 2” dia made out of Tata made ‘C’ class heavy duty Black pipe complete with water spraying system will be supplied by us
SECTION ‘B’ : 6.
Ammonia receivers:
One
50,000
One
1,40,000
One
25,000
Ammonia gas storing, receiver made out of “C” class heavy pipe or sheet 12 mm thickness of 20” or 22” dia.x 16’ or 18’ longx10 or 12 mm thickness complete with inlet outlet charging valve, safety and gauge valves, etc. 7.
Cooling coils: Refrigeration Trunk or V type cooling coil made out of 1.1/4. Tata make ‘C’ class Black pipe suitable for the above plant, complete with accummulator and inlet and out headers and valve fittings.
8.
Condenser Water pumps: 7.5 HP Mono Block Centrifugal water circulating pump, suitable for operating on 400/440 volts, 3 phase, 50 cycles and 2800 RPM
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Entrepreneurship Project: Ice plant each etc. will be supplied by us. 9.
Freezing tanks:
Two.
2,50,000
Freezing tank made out of 5 mm or 5.5 m/m thickness MS sheet to accommodate 300 nos./Ice cans of 11”x22”x48” lbs.cap. complete with partition plate each will be supplied by us. 10.
One
50,000
Two.
20,000
12.
One lot insulation for insulating One. freezing tank with 4” thickness thermocol bitomine etc. will be supplied as per our requirement.
50,000
13.
Ammonia valves flanges and One. pipe fittings for Inter connection of compressor, condenser, oil separator receiver and cooling coil, based on hook up of equipments as per requirement to complete the plant, etc. will be supplied
63,000
14.
5 H.P. Kirloskar make, squirrel Two. gauge induction motors suitable
22,000
Hand hoist crane: Hand hoist crane with 1 no. side trolly Central Joise and side rails will be supplied by us.
11.
Agitators: 14” size – Agitator, Vertical type complete with Belt, Motor pully and foundation railing will be supplied by us.
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Entrepreneurship Project: Ice plant for operation on 400/440 volt, 3 phase, 50 cycle, 1440 RPM with Delta starter for agitators, etc. 15.
50,000
Electrical Panel board: Panel board including all the main switches, starter, Ampere meter, Voltmeter, select switches, indicating lamps, cables to inter connect all the equipt.,etc. will be supplied.
SECTION ‘C’ : 16.
One lot Ice cans 120 nos. Ice made out of 18 gauge of G.I. sheet of 11”x22”x48” size fitted with heavy bending steel plate will be supplied.
1,80,000
17.
One lot of G.I. pipe and pipe . fittings for condensor water circulating pump and compressor Jacket cooling, etc. will be supplied
25,000
18.
One lot wood for making wooden frame and covering Ice Can Kanchcha of the chilling tank will be cost for 2 nos. tanks will be supplied.
60,000
19.
One lot Brain water of Hydrometer and thermometer will be supplied
5,000
20.
One
40,000
lot
Ammonia
gas
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Entrepreneurship Project: Ice plant Compressor oil and Transformer oil for operating the plant for the first charge will be supplied 21.
One lot common salt: For the first charge of the common salt in both tanks to make brine water solution will be supplied
25,000
22.
One lot insulation material, thermocole, Bitumen etc. will be supplied
60,000
23.
Erection testing and commissioning charges will be of Rs.80,000/-
24.
Ammonia charging hoise, etc.
1,000
25.
Transportation charges will be extra as per actual billings
40,000
26.
Ammonia
10,000
27.
One Transformer of 150 KV/400 Volts comp. With main Cable installation connecting the same with one panel board, made of some reputed company will be supplied
2,50,000
TOTAL:
Rs.26,41,0 00
Transport charges @ 10%
2,63,10 0
Installation charges @ 10%
2,63,10 0 Total:
Rs.31,67,2
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Entrepreneurship Project: Ice plant 00
PRE-OPERATIVE EXPENDITURE: Project profile
300
Telephone connection
3000
Travelling expr.
4000
Office Stationery
5000
Water distribution & pipe line works 40,000 Electrification
30,000
Other misc. expr.
500 82,800/-
TOTAL FIXED INVESTMENT = 43,30,000+31,60,200+82,800 = Rs.75,90,000
WORKING CAPITAL ANALYSIS: A.
Raw Material (P.M.):
The raw material used to prepare Ice block are water and ammonia. Water is collected by using motor from boring. Ammonia gas is charged once in a year. The average ammonia consumption per month is 1500/-.for one set of machinery Common salt,vice bran etc
=
2000
Ammonia
=
4000
Lubricants for motor,etc.
=
500
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Entrepreneurship Project: Ice plant =
B.
6,500/-
UTILITY (P.M.):
To make 7.2 Ton ice per day: Electricity40,000 KWH @ 5 2,00,000
C.
OTHER CONTINGENT EXPR. PER MONTH:
Stationery
=
1000
Telephone
=
2000
Maintenance
=
2000
Insurance
=
5000
Misc. expr.
= =
D.
2000
12000
STAFF AND LABOUR PER MONTH:
S.no.
1) 2) 3)
Designation Salary Supervisor 15000 Technical person 12000 Skilled workers 24000
No.
two two four
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Entrepreneurship Project: Ice plant Unskilled workers 16000 Watchman 5) 4000 4)
four two 71,000/-
Working capital per month 6,500+2,00,000+12000+71,000=2,89,500/-
=
CAPITAL INVESTMENT :
Fixed capital 75,80,000 Working capital (one month) 2,89,500 78,69,500/-
COST OF PRODUCTION (PER ANNUM): Total recurring expdr. and other
Material =30,000/-
cost
Labor =8,52,000/-
cost
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Entrepreneurship Project: Ice plant Direct =1,44,000/-
cost
Depreciation on machine and construction
=1,08520/-
Electric =4,06,250/-
bill
Insurance =1,44,000/-
and
taxes
Interest on total invt. @ 20% 10,00,000/-
=
TOTAL COST OF PRODUCTION 26,84,770 /-
= Rs.
Cost of unit of Ice = 26,84,770 /2600000=1.03/kg After loan payment = 16,84,770/2600000=0.65/kg
TURNOVER (PER YEAR) : Ice block of 120 kg, TOTAL 2600 ton. @ Rs.1.80/kg.(turnover) PROFIT:
= 46,80,000/-
46,80,000 – 26,84,770
=19,95,230/-
PROFIT RATIO = Profit x 100 = 19,95,230x100 = Turnover
42.63 %
46,80,000
RATE OF RETURN = profit x 100 = 19,95,230x100 = 26.29% Investment
78,90,000
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Entrepreneurship Project: Ice plant
BREAK EVEN ANALYSIS: Fixed cost: Total Depreciation Interest on capital invt. Annual salary(nonproductive) Insurance and taxes TOTAL
= 1,08,520 = 10,00,000 = 3,72,000 = 1,44,000 =16,24,520/-
Variable cost: Direct cost
=1,44,000
Direct material
=30,000
productive salary
=4,80,000
Electric bill TOTAL
=4,06,250 =10,60,250/-
Total sell = fixed cost +variable cost + profit =16,24,520 + 10,60,250 + 19,95,230 =46,80,000 Break Even Point = Total sell * fixed cost Total sell – variable cost = 46,80,000 * 16,24,520 46,80,000 – 10,60,250 = 21,00,353.23/-
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Entrepreneurship Project: Ice plant
CONCLUSION The main reason for planning for establishment of ice manufacturing firm is because it is highly profitable, it has lower capital investment. Therfore, money invested can be recovered quickly and high profits can be released within a couple of years of setting of the business. This project will be successfully implemented within the 3 months after approval of concerned authorities. The commercial production from the unit may be started within 6 months of approval if everything goes right. Ice plant Page 36
Entrepreneurship Project: Ice plant During real time implementation of the project, the different management techniques may be implemented to reduce the set up cost and different overhead expenses may be avoided by suitable industrial engineering methods. This project is an analytical representation of data collected from various sources. So, during real time implementation further clarification must be done to make a successful project.
BIBLIOGRAPHY : M/s. Bhubaneswar Ice Factory, Mancheswar Industrial Estate, BBSR. 2. M/s.Frick India Ltd.,Poonam Bldg., 5/2 Russel Street,Calcutta-71. 3. M/s.Asian Refrigeration, 9/2 Temple Street, Calcutta-700072. 4. M/s.Guru Nanak Refrigerators Corpn., 18/30, St.No.5 New Rohtak Road,New Delhi. 5. M/s.Refrigeration Trading Co., At/PONischintakoili,Near Kalyani Talkies, Dt.Cuttack. 1.
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