Transistor Radio Receivers (AM/FM)

535

PRODUCT CODE (ASICC) : 78261 QUALITY AND STANDARDS : Domestic Radio Receiver IS 615:1966 Community Radio Receiver IS 3397:1981. Utilising transistors, dry battery operated PRODUCTION CAPACITY : Qty. : 10,000 Nos. (per annum) Value : Rs. 25,00,000 YEAR OF PREPARATION : 2002–2003 PREPARED AND UPDATED BY : Small Industries Service Institute 22 Godown, Industrial Estate, Jaipur – 302 006 (Rajasthan), And Office of the Development Commissioner (Small Scale Industries), Electronics and Electrical Division, 7th Floor, Nirman Bhavan, New Delhi – 110 011.

INTRODUCTION industry is highly labour intensive. The investment in Plant and Machinery and Radio is one of the effective media space requirement both are low. The used to entertain and educate the assembly of radio receiver is economical masses about different aspects of life, in small scale sector due to low culture and languages in a developing overhead expenditure compared to the country like ours where literacy level is organized sector. Radios/Car Radios very low. Considering the importance of (Low Cost up to Rs. 250) are reserved this media, the Govt. have established for manufacture in the small scale sector. a number of broadcasting stations throughout the country and introduced different programmes. The Govt. has MARKET POTENTIAL also taken steps to reduce the cost of Transistor Radio receivers are very radio and abolished the radio licence to common in India. These radios are help the ordinary household possess a generally being used by lower income radio. group people masses being one of the The production of radio receiver is an strongest means of entertainment for assembly based industry and the them. In the present state of economy technology involved is simple. The in our country, a large section of the 36 TRANSISTOR RADIO RECEIVERS (AM/FM)

population especially in the rural areas indicated is of full capacity can easily afford to buy a cheap radio utilization. set for their entertainment. The vii) The project preparation cost etc. Government has already started the whenever required could be broadcasting FM channels in the country considered under pre-operative which will also boost the popularity of expenses. radio. Besides private FM broadcasting viii) The essential production stations are channels to be established machinery and test equipment in near future further giving Philip to the required for the project have market of Radio/Car Radios. been indicated. The unit may also utilize common test facilities ASIS AND RESUMPTIONS B P available at Electronics Test and i) The basis for calculation of Development Centres (ETDCs) production capacity has been and Electronic Regional Test taken on single shift basis on 75% Laboratories (ERTLs) set up by the efficiency. State Governments and STQC Directorate of the Department of ii) The maximum capacity utilization Information Technology, Ministry on single shift basis for 300 days of Communication and a year. During first year and Information Technology, to second year of operations the manufacture products conforming capacity utilization is 60% and to Bureau of Indian Standards. 80% respectively. The unit is expected to achieve full capacity MPLEMENTATION CHEDULE utilization from the third year I S onwards. The major activities in the iii) The salaries and wages, cost of implementation of the project has been raw materials, utilities, rents, etc. listed and the average time for are based on the prevailing rates implementation of the project is in and around Jaipur. These cost estimated at 12 months: factors are likely to vary with time and location. Sl. Name of Activity Period in Months No. (Estimated) iv) Interest on term loan and working 1. Preparation of project 1 capital loan has been taken at the report rate of 16% on an average. This 2. Registration and other 1 rate may vary depending upon formalities the policy of the financial 3. Sanction of loan by 3 institutions/agencies from time to financial institutions time. 4. Plant and Machinery: v) The cost of machinery and a) Placement of orders 1 equipments refer to a particular b) Procurement 2 c) Power connection/ 2 make/model and prices are Electrification approximate. d) Installation/Erection 2 vi) The break-even point percentage of machinery/Test Equipment TRANSISTOR RADIO RECEIVERS (AM/FM) 37

Sl. Name of Activity Period in Months interconnections. A plastic cabinet with No. (Estimated) an appealing front panel is widely used 5. Procurement of 2 for housing the receiver. The assembled raw materials receiver is tested for performance before 6. Recruitment of Technical 2 packing. The radio is packed in a card- Personnel etc. board box in such way that it should 7. Trial production 11 withstand shock and vibration during 8. Commercial production 12 transportation.

Notes Quality Control and Standards 1. Many of the above activities shall The radio receiver should conform to be initiated concurrently. the following specification : 2. Procurement of raw materials (a) Domestic radio receivers IS 615:1966

commences from the 8th month (b) Community radio IS 3397:1981 onwards. receivers utilizing 3. When imported plant and transistors, dry battery operated machinery are required, the implementation period of project Production Capacity (per annum) may vary from 12 months to 15 Quantity Value (Rs.) months. 10,000 Nos. 2.5 lakhs TECHNICAL ASPECTS Motive Power 5 KVA. Process of Manufacture Pollution Control A radio receiver consists of a RF The Govt. accords utmost importance section with mixer and oscillator, IF to control environmental pollution. The section with one or two amplifiers, a small-scale entrepreneurs should have detector section and AF section with an environmental friendly attitude and push-pull amplifier stages and loud adopt pollution control measures by speakers. As per the circuit design these process modification and technology stages are assembled on a printed circuit substitution. board using appropriate components and aligned . It is essential to test the India having acceded to the Montreal bought-out components prior to Protocol in Sept. 1992, the production assembly for avoiding any defective and use of Ozone Depleting Substances component going into the assembly. The (ODS) like Chlorofluoro Carbon (CFC), ferrite antenna, speaker and other Carbon Tetrachloride, Halons and Methyl controls like volume control, tone Chloroform etc. need to be phased out control, tuning dial system, battery immediately with alternative chemicals/ terminals/connectors etc., are mounted solvents. A notification for detailed Rules on the radio cabinet prior to mounting to regulate ODS phase out under the of assembled PCB in it. After mounting Environment Protection Act, 1986 have of above items, the PCB in the cabinet been put in place with effect from 19th and necessary wiring has been made for July 2000. 38 TRANSISTOR RADIO RECEIVERS (AM/FM)

The following steps are suggested which provides for efficient use of which may help to control pollution in energy, its conservation and capacity electronics industry, wherever building of Bureau of Energy Efficiency applicable: created under the Act. i) In electronic industry fumes and The following steps may help for gases are released during hand conservation of electrical energy: soldering/wave soldering/Dip i) Adoption of energy conserving soldering, which are harmful to technologies, production aids people as well as environment and testing facilities. and the end products. Alternate ii) Efficient management of process/ technologies may be used to manufacturing machineries and phase out the existing polluting systems, QC and testing technologies. Numerous new equipments for yielding maximum fluxes have been developed Energy Conservation. containing 2-10% solids as opposed to the traditional 15-35% iii) Optimum use of electrical energy solids. for heating during soldering process can be obtained by using ii) Electronic industry uses CFC, efficient temperature controlled Carbon Tetrachloride and Methyl soldering and desoldering stations. Chloroform for cleaning of printed circuit boards after assembly to iv) Periodical maintenance of remove flux residues left after motors, compressors etc. soldering, and various kinds of v) Use of power factor correction foams for packaging. capacitors. Proper selection and Many alternative solvents could layout of lighting system; timely replace CFC-113 and Methyl Chloroform switching on-off of the lights; use in electronics cleaning. Other of compact fluorescent lamps Chlorinated solvents such as wherever possible etc. Trichloroethylene, Perchloroethylene INANCIAL SPECTS and Methylene Chloride have been used F A as effective cleaners in electronics A. Fixed Capital

industry for many years. Other organic (i) Land and Building solvents such as Ketones and Alcohols Built up area 125 sq. mtrs. are effective in removing both solder fluxes and many polar contaminants. Office, Store etc. 25 sq. mtrs. Factory 100 sq. mtrs. Energy Conservation Rent Rs. 3000 per month

With the growing energy needs and (ii) Machinery and Testing Equipments shortage coupled with rising energy cost, a greater thrust in energy efficiency Sl. Description Qty. Total in industrial sector has been given by No. (Rs.) the Govt. of India since 1980s. The 1. Coil Winding Machine 2 7,000 Energy Conservation Act, 2001 has 2. Bench Grinder 1 7,000 been enacted on 18th August’2001, 3. Portable Drill Machine (½”) 1 5,000 TRANSISTOR RADIO RECEIVERS (AM/FM) 39

Sl. Description Qty. Total Sl. Description Price Total No. (Rs.) No. per Unit (Rs.) 4. R.F. Signal Generator 1 7,000 3. Capacitors 15 12,600 5. A.F. Oscillator 2 5,000 4. IFT and RF Coils 5 5,880 6. Oscilloscope (20 MHz) 1 20,000 5. P C B 15 12,600 7. A.F. Power Meter 1 5,000 6. Band Switch 3 2,520 8. D.C. Power Supply (30 V, 2A) 3 13,500 7. Variable gang condenser 5 5,880 9. Digital Multi-meter (3 ½ digit) 1 3,500 8. Volume Control 4 3,360 10. Analog multi-meter 2 1,500 9. Speaker 8 6,720 11. Transistor tester 1 15,000 10. Ferrite rods 3 2,520 Total 89,500 11. Tuning system 5 4,200 Electrification and Installation 8,950 12. Plastic Cabinet 20 16,800 charges @ 10% of the cost 13. Knobs 3 2,520 of machine and equipment 14. Misc. Items (Solder 7 5,880 Hand Tools, Soldering, L.S 20,000 wire, mech. Hardware Irons and Jigs etc.) L.S. Work benches, stools and L.S. 50,000 15. Battery Holder 3 2,520 office equipments 16. Transformer 10 8,400 (iii) Pre-operative Expenses 10,000 Total 1,17,600 Total Fixed Capital 1,78,450 or Say 1,79,000 (iii)Utilities (per month) (Rs.) Power 3,500 B. Working Capital (per month) Water 500 (i) Staff and Labour Total 4,000

Sl. Designation No. Salary Total (iv) Other Contingent Expenses (per month) (Rs.) No. (Rs.) (Rs.) Rent 3,000 1. Manager 1 5,000 5,000 Postage Stationery 1,000 2. Supervisor 1 3,000 3,000 Repair and Maintenance 500 3. Marketing Assistant 1 2,500 2,500 4. Clerk-cum-Accountant 1 2,000 2,000 Transport and Packaging 8,000 5. Typist/Steno 1 2,000 2,000 Conveyance expenses 3,000 6. Peon/ Chowkidar 1 1,600 1,600 Advertisement 7,000 7. Skilled Workers 3 2,500 7,500 Misc. expenses 1,500 8. Un-skilled Workers 2 2,000 4,000 Total 24,000 Total 27,600 Perquisites @ 15% of the salary 4,140 (v) Total Recurring Expenditure Rs. 1,77,600 (i+ii+iii+iv) Total 31,740 or Say 32000 (vi) Total Working Capital Rs. 5,32,800 (3 Months Basis) (ii) Raw Material Requirement (per month) C. Total Capital Investment Sl. Description Price Total No. per Unit (Rs.) (i) Fixed Capital Rs. 1,79,000 1. Transistors and Diodes 20 16,800 (ii) Working Capital (3 months basis) Rs. 5,32,800 2. Resistors 10 8,400 Total Rs. 7,11,800 40 TRANSISTOR RADIO RECEIVERS (AM/FM)

FINANCIAL ANALYSIS Additional Information

(1) Cost of Production (per annum) (Rs.) (a) The Project Profile may be modified/tailored to suit the Recurring expenditure 21,31,200 individual entrepreneurship Depreciation on Machinery 8,950 qualities/capacity, production and Testing equipment @ 10% programme and also to suit the Depreciation on furniture and 10,000 office equipment @20% locational characteristics, wherever applicable. Depreciation on jig, fixture 5,000 and tools etc @ 25% (b) The Electronics Technology is Interest on total investment @ 16% 1,13,888 undergoing rapid strides of Total 22,69,038 change and there is need for regular monitoring of the national or Say 22,69,000 and international technology (2) Turnover (per annum) (Rs.) scenario. The unit may, therefore, By sale of 10,000 nos. Transistor Radio 25,00,000 keep abreast with the new Receivers (AM/FM), @ Rs. 250 technologies in order to keep (3) Profit (per annum) (Before Taxes) Rs. 2,31,000 them in pace with the (4) Net Profit Ratio Profit (per annum) × 100 developments for global Sales (per annum) competition. 2,31,000 × 100 (c) Quality today is not only confined = 25,00,000 to the product or service alone. = 9.24% It also extends to the process and (5) Rate of Return Profit (per annum) × 100 environment in which they are = Total capital investment generated. The ISO 9000 defines 2,31,000 × 100 standards for Quality Management = 7,11,800 Systems and ISO 14001 defines = 32.45% standards for Environmental (6) Break-even Point Management System for acce- ptability at international level. The Fixed Cost (per annum) (Rs.) unit may therefore adopt these 1. Depreciation on M/c., 23,950 standards for global competition. equipment, furniture tools, etc. (d) The margin money recommended 2 Rent 36,000 is 25% of the working capital 3. Interest on Capital Investment 1,13,888 requirement at an average. 4. 40% of salaries and wages 1,53,600 However, the percentage of 5. 40% of other contingent expenses 88,800 margin money may vary as per (excluding rent) bank’s discretion. Total 447438 or Say 447000 Addresses of Machinery and Testing Equipment Suppliers B. E. P. Fixed Cost × 100 = Fixed Cost + Net Profit 1. M/s. Quality Machine Tools 447000 × 100 34, JC Road, = 447000 + 231000 VISL Building, = 65.93% Bangalore – 560 002. TRANSISTOR RADIO RECEIVERS (AM/FM) 41

2. M/s. Swastik Machine Tools 15/48, Malcha Marg, 4, Lata Chambers, New Delhi - 110 021. Nashik - 422 002. 2. M/s. Peico Electronics and 3. M/s. Applied Electronics Ltd. Electricals Limited A-5, Wagle Industrial Estate, Shivsagar Estate, Thane – 400 604. Block-A, 4. M/s. BPL (India) Ltd., Dr. Annie Besant Road, 84, MG Road, Mumbai - 12. Bangalore – 560 001. 3. M/s. OEN Connectors Ltd. 5. M/s. Peico Electronics and Vyttila, Electrical Ltd. Post Box No. 2, Shivasagar Estate, Block ‘A’ Cochin - 19. Dr. Annie Besant Road, 4. M/s. Micropack Ltd. Mumbai - 18. Plot 16, Jigami Industrial Area, 6. M/s. Agronic Instruments (P) Ltd. Anekal Taluk, 201, Shiv-Shakti Industrial Estate, Bangalore Distt. - 562 106 Mumbai - 86. (For PCB) 7. M/s. Syntronics 5. M/s. Amar Radio Corporation 89-92, Industrial Area, 11/1, Thiglar Periyanna Lane, Naroda - 382 330. SJP Road, 8. M/s. Electronics Trade and Bangalore - 560 002. Technology Dev. Corporation Ltd. 6. M/s. Globe Industries 15/48, Malcha Marg, 69, Saddar Patrappa Road, New Delhi - 110 021. Behind SJP Road, Addresses of Raw Material Bangalore - 2. Components 7. M/s. Champion Electronics (P) Ltd. 1. M/s. Electronics Trade and A-17, MIDC, Bhosari, Technology Dev. Corpn. Ltd. Pune - 411 026.