Professional Documents
Culture Documents
In industrial training in the company. I have selected the topic from marketing
management in the study of Sales Promotion including product selling. In the case
of our activity in modern marketing is the most important device that finds the
needs and wants of the community and it tries to satisfy those need and wants
through the marketing functions.
I strongly agree with the practical training because practical training is very
essential to the knowledge and practical which cab is performed in practice. How
does it is implemented in practice?
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This to certify that Mr. Patel Sagar M., the student of T.Y.B.B.A. of this
collage has prepared this project report on “Spherical Roller Bearing” for the small
scale industries with the help of “V.D.M. Bearing Co.” independently and the same
under my supervision.
Place:-
Date:-
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It is really a much pleasure for me to prepare a product project report. At this
stage while studying in T.Y.B.B.A. project report is an important part of business
and it is in the interest of the entrepreneur to prepare the project report before he
starts the actual production.
It is my pleasant duty to express my profound gratitude and extreme regards to
Prof. T.R.Hathi under whose kind and pinpointed guidance, I was not able to
complete my project work in time, without whose learned and capable guidance and
encouragement, this work could not have been completed successfully.
I am also very thankful to S.S.I. office Rajkot and V.D.M. Bearing Co., which are
the real source of information of my project which help me a lot in the preparation
of the project report.
I would also like to thanks our principal Shri T.T.Raiyani for his kind co-
operation.
Patel Sagar M.
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☺ PROJECT SUMMARY
☺ PLANT CAPACITY
☺ RAW MATERIAL
☺ FINANCIAL ANALYSIS
☺ NAME AND ADDRESS OF SUPPLIERS
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INTRODUCTION
The development and importance of Small scale Industries has
increased immensely in this century. Generally, less capital is required in
small scale business, as compared to large scale organization . There is
great scope of expansion of small scale business this era. Where there is
exists a variety of needs, which gives rise to the development of newer
products each day. Thus, we can say that the small scale industries are an
essential part of the economy of the country.
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PROJECT AT GLANCE
PROMOTER’S BACK GROUND
PRODUCT AND IT USES
MARKET POTENTIALS
MANUFACTURING PROCESS
PRODUCTION PROCESS IN STEP
PLANT LOCATION AND PLANT JUSTIFICATION
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PROJECT AT GLANCE
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PROMOTERS BACK GROUND
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Justification of location
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Product details
[1] Application:
- Bearing is a vital component in any rotating mechanism of machinery
- Bearing is used to design revolving mechanism from simple household
items to those used in space & shuttle
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Market potential
In India the bearing industry can be traced to a little over 50 years. The first
unit to commence production was National Bearing Co. Ltd., JAIPUR. Some Small
Scale Units in PUNJAB and some other places also manufactured bearings. Bearing
Industry developed tremendously in small-scale sector during the late eighties and
beginning of nineties has mostly developed in Gujarat State and that too particularly
in Saurashtra Region.
The raw materials used for bearing are procured from Mahindra & Mahindra
Bihar Alloys, Special Sheets etc. As against global range 1,50,000 different types of
bearing near 70,000 different types of bearings are used in India. The indigenous
production of bearings is limited to about 700 types.
The demand of bearing from major sector of industries are as follows.
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MANUFACTURING PROCESS
SAE 52100 rods are taken and blanks are cut and forged as per the size
of the bearings. After forging annealing is done to relieve internal stresses
developed during the forging operation. These annealed forgings rings are sent for
turning operation where turning of the outraces and inner cones is done. At all these
steps various dials, gauges and slip gauges are used for checking the accuracy. After
turning these heat treatment is carried out at 900c & after heat treatment chamfering
is done to relieve internal stresses treatment during the hardening operation.
All these operations are done in the ancillary units and these are called
as preliminary processes. Further, operations are done in the assembly units or
bearing manufacturing units. Where rough grinding & finish grinding of internal
and outer races is done followed by honing operation. After such operation sizes are
directly checked. After this, the assembly of the bearing is done. These assembled
bearings are frequently checked & are cleaned in centrifugal cleaning machines by
kerosene and finally oiled and packed in polythene bag sealed & then packed in the
packing boxes.
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PROJECT ENGINEERING
Production capacity
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FINANCIAL DETAILS OF THE PROJECT
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(2) Machinery & Equipment :-
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Name of the Quantity Electricity Total
Machine No. Reg. In h.p. cost (Rs.)
Total 41,13,000
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(3) Total Fixed Capital Investment:
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Working Capital Details
(1) Personnel:
Total 51,900
Prerequisites @ 15% of salary 7,780
Total 59,680
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(2) Raw Material:
(3) Utilities:-
Power consumption 5000 units @ Rs. 4=50 22,500
22,500
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(4) Other Contingent Expenses (per month):- (Rs.)
Rent 10,000
Postage & Stationary 1,000
Consumables like grinding wheel, 9,000
Kerosene, grease, cutting oil etc.
Telephone 2,200
Repairs & Maintenance 3,000
Advertisement & Publicity 2,000
Packing & Forwarding 7,000
Insurance 1,000
Traveling & Conveyance 4,000
Marketing & Sales 2,500
Miscellaneous expenses 1,000
Total 42,700
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Working capital for 3 months:-
13,58,630 x 3 = 40,75,890
SALES
Details of sales product Spherical Bearing
Rate per piece Rs. 180
Quantity sold 1,20,000 pieces per annum
Total value of sales Rs. 2,16,00,000
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DETAILS OF MEANS OF FINANCE
Particulars Amt.
Owned capital (50%) 41,54,445
Borrowed capital (50%) 41,54,445
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(2) Rent & Insurance:-
Rent Rs. 10,000 per month
Insurance Rs. 1000 per month
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(3) Salary & Wages:-
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(4) Administration expenses:-
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(6) Repairs and maintenance:-
PERMONTH PER YEAR
Repair & main. Rs. 3000 Rs. 36000
Financial analysis
Cost of production (P.A.)
Details (Rs.)
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Turn over (P.A.)
Details (Rs.)
Yearly sales of 1,50,000 pcs.@ Rs.190/- 2,16,00,000
Yearly sales of scrap 2,20,000
Total 2,18,20,000
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Net profit:-
N.P. = Sales - Cost of production
(After tax) = 2,18,20,000 - 1,34,49,648
= 83,70,352 - Tax (29,29,623)
= Rs. 54,40,728
= 54,40,728 x 100
2,18,20,000
= 24.93%
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Rate of return:-
= 54,40,728 x 100
83,08,890
= 65.48%
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BREAK EVEN ANALYSIS
Particular (Rs.)
Rent 1,20,000
Depreciation on tools, fixtures, measuring, 50,000
And testing equipments
Depreciation on office equipments 11,000
Depreciation on machinery 3,75,800
Insurance 12,000
40% of salaries & wages 2,86,464
40% of other contingent expenses 1,52,160
(except rent and insurance)
Interest on borrowed capital 8,72,430
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Break even point = Fixed cost x 100
= 18,79,854 x 100
18,79,854 + 54,40,728
= 18,79,85,400
73,20,582
= 25.67%
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SUMMARY
Details (Rs.)
Raw material 12,33,750
Salary & wages 7,16,160
Repairs & maintenance 36,000
Rent 1,20,000
Depreciation 3,75,800
Administration expenses 98,400
Selling & dist. expenses 1,38,000
Total expenses 27,18,110
Sales 2,16,00,000
Sales of scrap 2,20,000
Net profit 54,40,728
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SUPPLIER OF MACHINARY
1. M/s. Solar Machine Tools,
C-16/7 Aji ind. Estate, Phase – 1,
Road E, RAJKOT (Centreless Grinder)
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SUPPLIERS OF RAW MATERAILS
1. M/s New Heaven Steel Balls,
38, Saki Vihar Road, BOMBAY-72
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