PROJECT REPORT

AUTOMATIC VOLTAGE STABILISER

Prepared by
RIHAN KHALYANI
B.E. ELECTRICAL
•QUALITY AND STANDARD:As Per IS
Specifications.

•PRODUCT CAPACITY:Qty. 3000 Nos.

•COST OF PROJECT : 24,81,100 rs.

•Introduction:-

The Voltage stabilizer provides an output voltage with a

specified limit for supplying to load irrespective of wide
fluctuation in the input voltage, independent of load
power factor and without introducing harmonic distortion.
The voltage stabilizer adjusts automatically the voltage
variation whether high or low to the proper voltage level
necessary for the safe operation of equipments.

Excessive voltage fluctuation are hazard to costly

electronic and electrical equipments like T.V. sets, VCRs,
refrigerators and other scientific and medical equipments
etc. Voltage stabilizers are used along with these
equipment to protect them from damage due to wide line
voltage fluctuations.
•Market Potential:-

Consumer electronic products are the backbone of the

electronic industry in the country. Consumer electronics
contributes about one third of total electronics production
in the country. Since the item is of great utility of the
consumer electronics its demand is growing at a rapid
pace in keeping with the increasing production of
consumer electronics item.
•Basis and presumptions:-
•The basis for calculation of production capacity has
been taken on single shift basis on 75% efficiency.The
maximum capacity utilization on single sift basis for
300 days a year. During first year and second year of
operations the capacity utilization is 60% and 80%
respectively. The unit is expected to achieve full
capacity utilization from the third year onward.
•The salary and wages, cost of raw materials, utilities,
rent, etc. are base on the prevailing rates around Agra.
These cost factors are likely to vary with time and
location.
•Interest on term loan and working capital loan must
be preferably current rate. Otherwise, the rate of
interest on an average may be taken as 13%. This rate
may vary depending upon the policy of the financial
institutions/agencies from time to time.
The cost of machinery and equipments refer to a
particular make / model and prices are approximate.The
breakeven point percentage indicated is of full capacity
utilization.
•The project preparation cost etc. whenever required could
be considered under pre-operative expenses.
•The essential production machinery and equipment
required for the project have been indicated. The unit may
also utilize common test facilities available at Electronics
Test & Development Centers (ETDCs) and Electronic
Regional Test Laboratories (ERTLs) and Regional Testing
Centers (RTCs).
 •Implementation schedule:-

1. Preparation of project report 1

2. Registration and other formalities 1
3. Sanction of loan by financial institutions 3
4. Plant & machinery
a) Placement of orders 1
b) Procurement 2
c) Power connection/ Electrification 2
d) Installation/Erection of machinery/
Test Equipment
2
5. Procurement of raw material 2
6. Recruitment of Technical Personnel etc. 2
7. Trial production 11
8. Commercial production 12
TECHNICAL ASPECTS:-
-Process of Manufacture:
Components are assembled on a printed circuit boards as
per the circuit design. The assembled PCB, Relay,
Transformer, switch indicating lamps and power cables are
further assembled to form a compact unit. The whole
assembled unit is enclosed in metal case with an appealing
front panel. Finally the stabilizer is tested for the
performance as per the design
- Quality Standards:-
As per BIS standards.
- Production Capacity Per Annum
Quantity Value (Rs.)
2,400 Nos. (250 VA):- 7,20,000
6,00 Nos. (500VA):- 3,00,000
1.Motive Power :- 5 KVA
 Energy Conversation:-
With the growing energy needs 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 for efficient use of energy, its conservation &
capacity building of Bureau of Energy Efficiency created under the
Act.Adoption of energy conserving technologies, production Aids
and testing facilities.
-Efficient management of process/manufacturing machineries and
system, QC and testing equipment for yielding maximum energy
conservation.
-Optimum use of electrical energy for heating during soldering
process can be obtained by using efficient temperature controlled
soldering and disordering station.Periodical maintenance of
motors compressors etc.
- Use of power factor correction capacitors.Proper selection &
layout of lighting system; timely switching on-off of the lights;use
•FINANCIAL ASPECTS:-

•Fixed Capital
(A)Land and Building:Plant & Machinery

Built up area 100 sq.mtr

Office 28.40 Sq mtr
Stores 8.30 sq mtr
Production area 55 sq mtr
Warehouse 8.30 sq mtr
Investment in 18,00,000
building(approx)
S.No Description Qty. (Nos.) Amount (Rs.)
.
1. Multi Meter 2 5,000
2. Auto-transformer 0 to 300V 2 12,000
10Amp
3 Test setup consisting of voltameter, 1 set 2500
Ammeter & Watt meter
4. Bench Drilling Machine ½” 1 Nos. 5,000
5. Megger 1 No. 7500
Total 32,000
Other fixed assets
Electrification charges @ 10% of the 3200
cost of machinery and
Equipment
Office equipments, 20,000
furniture and working table etc.
Tools, Jigs and fixtures, Etc.
10,000
•Working Capital Per Month :
A.Staff and Labour

S.No. Designation No. of Salary/ month Total

persons (Rs.) salary(Rs.)
1. Skilled workers 4 8,000 32,000
2. Unskilled workers 2 5,000 10,000
3. Supervisor 2 10,000 20,000

Total 62,000
 A.Raw material requirement per month

0.25 KVA Voltage Stabilizer Cost

Production per month 200 Nos.

25 working days

S.No. Description Ind./Imp. Rate Total cost

per month
1. Transformer Indian 200 40000
2. Fibre box & chassis Indian 180 36000
3. Plug and Socket Indian 58.75 11750
4. Lamps and mains cardname Indian 16 3200
plate
5. PCB with the components Indian 50 10000
6. Relays, 2 Nos. Indian 35 7000
7. Screens and spares- Indian 20 4000
insulation, sleevings
8. Packing material 20 4000
9. Volt Meter 85 17000
664.75
Total 664.75x200 132950
 Production per month 50 Nos.
25 working days

S.No. Bought out components Rate/each

1 Transformer 500 25,000
2 Fibre box and Chassis 120 6000
3 Mains Card and Socket and lamps 70 3500
4 PCB with components 80 4000
5 Relays (4 Nos.) 140 7000
6 Screws and spares insulation and sleevings 40 2000
7 Packing material 20 1000
8 Volt meter 80 4000
1050 x 50 52500
Total cost of Bought outs for month Rs.
200 x 0.25 KVA stabilizer 1,32,950
50 x 0.5 KVA stabilizer 52500
1,95,450
 A.Utilities and Power

Power 3000.00
Water 500.00
Total 3500.00
 A.Other Contingent Expenses Per Month
Total recurring expenditure per month (i+ ii+ iii+ iv )=Rs.3,06,450

1. Rent of some part of machinery. 6000.00

2. Potage & Stationary 5000.00
3. Telephone/Telex/Fax charge 4000.00
4. Repair and maintenance 5000.00
5. Transport and conveyance charges 6500.00
6. Advt. and publicity 10000.00
7. Insurance and taxes 4000.00
8. Miscellaneous expenditure 5000.00
Total 55500.00
 •TOTAL CAPITAL INVESTMENT

Investment in Plant and machinery 68,200.00

Working Capital on 2 months basis 6,12,900.00
Total 6,81,100.00
•FINANCIAL ANALYSIS
•COST OF PRODUCTION PER ANNUM

Total recurring expenditure 21,63,600

Depreciation on machinery and equipment @ 10% 3200
Depreciation on tools, jigs, and fixtures @ 25% 2500
Depreciation on office equipment, furniture @ 20% 4,000
Interest on total capital investment @ 16% 1,08,976
Total 22,82,276
 •TERNOVER PER ANNUM

Item Qty. Rate/Unit Total Sales

(Nos)
Voltage Stabilizer 600 1250/- 7,50,000
(500 KVA) 18,00,000
Voltage stabilizer 750 2400
(250 kv)
Total 25,50,000
 •PROFIT PER ANNUM (BEFORE TAXES)
Turn over per annum - Cost of production per annum
25,50,000-22,82,276
= Rs. 2,67,724
Profit ratio= (Profit/annum) x 100 (Sales / annum)
= 2,67,724 x100 25,50,000
= 10.49 %
 5,87,280
= 54.41 %
Rate of return = Profit/annum x 100 Total Capital investment
= 2,67,724 x100 6,81,100
= 39.31 %
Break Even Point
•Fixed Cost per annum
Break Even Point = Fixed Cost x 100 Fixed Cost
+Profit

Rent 72,000
Depreciation on machinery and equipment @ 10% 3200
Depreciation on tools, jigs, and fixtures @ 25% 2500
Depreciation on office equipment, furniture @ 20% 4,000
Interest on total capital investment @ 16% 1,08,976
Insurance 12000
40% salaries & wages 49680
40% other contingent & utilities 67200
(including rent & insurance)
Total Fixed cost 3,19,556
Additional Information
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
•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 ,abreast with the new technologies in
order to keep them in pace with the developments for global competition .
•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 System and
ISO 14001 defines standards for Environmental Management System for acceptability at environment level . The
unit may therefore adopt these standards for global competition .