PROJECT PROFILE

ON

DIESEL ENGINE (SLOW SPEED) UP TO 15 HP

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PART-I

NAME OF THE PRODUCT : DIESEL ENGINE (SLOW SPEED) UP TO 15 HP.

PRODUCT CODE :

QUALITY & STANDARD : After assembling the engines are required to be

performance tested as per BIS:10001-1981 and
BIS:1000-1980. For successful marketing of the
Engine, BIS certification is essential.

PRODUCTION CAPACITY : 100 Nos. of single & double cylindered four stroke
slow speed diesel engineers per month.

MONTH & YEAR OF : March, 2013.

PREPARATION

PREPARED BY : MSME - Development Institute,

Ministry of Micro, Small & Medium Enterprises,
Government of India
107, Industrial Estate, Kalpi Road,
Kanpur-208012.
Tele. 2295070, 2295071 & 2295073 (EPBAX)
Tele. No. 2295072 (SENET & TRC)
Tele/Fax No.: 0512- 2240143
email: dcdi-kanpur@dcmsme.gov.in
Website: msmedikanpur.gov.in
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PROJECT PROFILE

ON

DIESEL ENGINE (SLOW SPEED) UP TO 15 HP

**********************

PART-II

A. INTRODUCTION:

Diesel Engine is a convenient and cost effective prime mover for pumping water for
agricultural and industrial purposes. It is used in industries to supplement power and
in rural areas to crush cane, to lift water, to operate flour mill etc.

Main concentrations of this industry are at Rajkot, Kolhapur, Agra, Pune and
Ghaziabad. A large number of SSI units are engaged in manufacturing one or more
components of diesel engines. Due to batch production of single or few components,
it has been possible to achieve quality product at very low cost. As such, it is
possible for SSI units to assemble diesel engines by purchasing the finished or
semi-finished components and only minor machining, testing etc. need be done by
the manufacturer. Considering the above facts, it is proposed to be brought out all
the components instead of manufacturing the same in the unit.

B. MARKET POTENTIAL:

With more and more farmers opting for lifts irrigation and use of various types of
mechanized agricultural implements, the demand for small diesel engines has been
increasing steadily. Now-a-days commercial banks are also coming up to provide
finance to the small farmers and small enterprises for purchasing diesel engines
which has created extra potential for marketing the item. Various Govt. agencies are
also giving loan and subsidy on diesel engines which will help the growth of demand.
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C. BASIS & PRESUMPTIONS:

The unit is expected to work 8 hours a day and for 300 days in a year and the details
are worked out accordingly.

D. IMPLEMENTATION SCHEDULE:

The following steps involves in the implementation of the project:-

I. Preparation of Project Report-

a) Inviting quotation : 6 Weeks
b) Project Report Preparation : 2 Weeks
II. Provisional Registration of SSI : 1 Weeks
III. Financial arrangement : 12 Weeks
IV. Purchase and Procurement of machinery : 12 Weeks
V. Installation, Electrification of machine : 6 Weeks
VI. Production Trials : 2 Weeks
41 Weeks
Say : 9 months

E. TECHNICAL ASPECTS:

1. Process of Manufacture:

In this project profile it has been proposed to carry out only minor machining
assembly of finished components and testing the final product to meet desired
quality. Suitable attention to be given at the time of sub-assembly and final assembly
to make sure about the quality of the end product. Few points in this context are
given below where attention should be given during assembling process:

i) Crank case assembly:

Fitting the balance weights to crank shaft, lubricating pump assembly, main
bearing fitting & fitting the connection rod.

ii) Cylinder block assembly:

Fitting the liner and completing the cylinder block assembly by fitting the piston
containing piston ring and gudgeon pin.
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iii) Final assembly:

Cam shaft and gear wheel assembly, fly wheel assembly to the above, marketing
the fly wheel for spill point and valve timings, TDC and BDC, Cam shaft gear
wheel fixing, fuel pump assembly, adjustment of fuel pump rocker lever for
correct lining, assembly of cylinder head containing valves, rocker box and push
rod assembly, checking valve clearance, air inlet, water inlet and outlet and a
tomiser nozzle.

2. Quality Control & Specification :

After assembling, the engines are required to be performance tested as per IS:
10001-1981 and IS:10000-1980. For successful marketing of the engines, ISI
certification is essential.

3. Production capacity (per annum)

Economies in this project profile is based on manufacture of 1200 Nos. of single &
double cylindered four stroke, slow speed diesel engines per annum.

4. Total Power requirement- 5 KW

5. Pollution Control-

Major steps will be required to control pollution.

6. Energy Conservation-

Suitable efficient electrical motors should be used in machines with suitable shunt
capacitors.
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F. FINANCIAL ASPECTS

i) Fixed Capital

Land & Building

Land & Building (Rented) p.m. 300 sq. mtr. @50/- 15,000/-

ii) Machinery & Equipment-

a) Assembly Section:

Sl. Description Qty. Amount

No. (Rs.) (Rs.)

1. Centre Lathe 1400 mm with electrical accessories 1 60,000/-

2 HP Motor.

2. Bench Drill 12 mm cap. with standard accessories 1 10,000/-

with 5 HP motor.

3. Bench Grinder double ended 200 mm wheel 1 6,000/-

4. Flexible shaft grinder 1 6,000/-

5. Assembly rigs with chain pulley block, trolleys, misc. 2 1,00,000/-

hand tools etc.

6. Air Compressor 1 10,000/-

7. Installation & Electrification @ 10% 19,000/-

8. Pre-operative expenses 20,000/-

Total: 2,31,000/-

b) Test Bench Equipments 1,00,000/-

c) Inspection Instruments & gauges 50,000/-
d) Furniture 20,000/-
Total: 4,01,000/-
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iii. WORKING CAPITAL (per month):

(a) Personnel:

Designation No. Salary Total (Rs.)

Engineer 1 10000 10,000/-
Skilled Workers 3 6000 18,000/-
Un-Skilled Workers 3 5000 15,000/-
Office Assistance 1 5000 5,000/-
Watchman/Peon 1 4000 4,000/-
Total: 52,000/-

(b) Raw material including packaging materials (per month):

Sl. Items Qty. Rate Amount Rs.

No.
1. Various finished components of 16,00,000/-
cast iron, MS & EN series (List of
main components are given
separately at the end of this
profile).
2. Lubricating Oil, Paints etc. 40,000/-
3. Packing boxes, materials etc. 50,000/-
Total: 16,90,000/-

(c) Utilities ( per month):

1. Electricity 5 KW @ Rs.6/- per unit 5,500/-
2. Water 500/-
6,000/-

iv. Other contingent expenses ( per month):

1 Rent 15,000/-
2 Postage & Stationery 2,000/-
3 Repair & Maintenance 1,000/-
4 Advertisement & Sales expenses 1,500/-
5 Transportation charges 2,000-
6 Consumable stores, diesel, oil etc. 2,000/-
Total: 23,500/-
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v. Total recurring expenditure ( per month)

1. Personnel 52,000/-
2. Raw Materials 16,90,000/-
3. Utilities 6,000/-
4. Other Contingent Expenses 23,500/-
Total: 17,71,500/-

vi. TOTAL CAPITAL INVESTMENT:

I. Fixed Capital 4,01,000/-
II. Working Capital 17,71,500/-
Total: 21,72,500/-

G. FINANCIAL ANALYSIS:

1. Cost of production (per annum):

Total Recurring expenditure 2,12,58,000/-

Depreciation on machinery and equipment @ 10% 35,100/-
Depreciation on office furniture & fixture @ 20% 10,000/-
Interest on capital investment @ 13% 2,82,425/-
Total : 2,15,85,500/-
Say: 2,15,86,000/-

2. Turnover (per annum):

Item Qty. Rate (Rs.) Value (Rs.)

Diesel Engine 1200 Nos. 25,000/- 3,00,00,000/-

3. NET PROFIT: (p.a.)

Turn Over (-) Cost of Production

= 84,14,000/-
3,00,00,000/- (-) 2,15,86,000/-
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4. Net Profit ratio:

Profit/annum X 100 84,14,000/- X 100

= 28.04%
Turnover/Annum 3,00,00,000/-

5. Rate of Return:
Net 84,14,000/- X 100
Profit/annum X 100 = 387.29%
Total Capital Investment 21,72,500/-

6. Break even Analysis:

i. Fixed cost
1. Rent Rs. 1,80,000/-
2. Total depreciation Rs. 45,100/-
3. Interest on total capital investment @ 13% Rs. 2,82,425/-
4. 40% of Salary & Wages Rs. 2,49,600/-
5. 40% of other contingent expenses (excluding rent) Rs. 40,800/-
Total:- Rs. 7,97,925/-
Say: Rs. 7,98,000/-

ii. Break even point

Fixed Cost X 100 7,98,000/- X 100

= 86.62%
Fixed Cost + Profit 7,98,000/- + 84,14,000/-

ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS:

1. M/s Divya Industries,
Ajit Industial Estate, Rajkot-3.
2. M/s Patel Engineering Works,
Ajit Vasshat Bhavnagar road, Rajkot-3.
3. M/s Acme Engineering Works,
10, Vijay Plot, Rajkot-2.
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4. M/s Mennon Pistons,

Kolhapur (Maharashtra).
5. M/s Perfect Circle Victor Ltd.,
20, Industrial Area, Nasik (Maharashtra).
6. M/s National Engineering Industries Ltd.,
Jaipur-6 (Rajasthan).
7. M/s Motor Industries Co. Ltd.,
79, Annie Besant Road, Worli, Mumbai-18.

Addresses of Measuring Instruments, Gauge and Machine Tool Suppliers:

1. M/s International Tools corporatitont,

1/25, Nickison Road, Kolkata-1.
2. M/s Fairdeal Corporation,
155, Caning Street, Kolkata-1.
3. M/s Accurate Engg. Co.,
67, Hadapsar Industrial Estate, Pune-411013.
4. M/s Neelam Industgries,
K-1,/08, GIDC Indl. Estate, Naroda, Ahmedabad.
5. M/s Channa Brothers,
26, Okhla Indl. Estate, New Delhi -110020.
6. M/s B. S. Machine tools Corporation,
435, Jesors Road, Kolkata.
7. M/s Batliboi & Co,
Forbes Street, Mumbai-1.

List of Diesel Engine Components:

Sl. Name of Components Material

No.
1. Piston C.I. Grade 25
2. Liner C.I. Grade 25
3. Exhaust Valve Guide C.I. Grade 25
4. Inlet Valve Guide C.I. Grade 25
5. Piston Ring Compression C.I. Grade 25
6. Piston Ring Oil C.I. Grade 25
7. Cylinder Head C.I. Grade 25
8. Bearing Housing C.I. Grade 25
9. Governor Gear C.I. Grade 20
10. Idler Gear C.I. Grade 20
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11. Valve tappert guide C.I. Grade 20

12. Camshaft End Cover C.I. Grade 20
13. Crank case C.I. Grade 20
14. Cylinder Block C.I. Grade 20
15. Governor weight C.I. Grade 20
16. Connecting Rod bush Phosphor Bronze
PIZ-10 IS:28-1958
17. Inlet & Exhaust Valves EN 51, 52.
18. Crank shaft EN 8
19. Con. Rod Bolt EN 21
20. Con. Rod EN 3
21. Castle Nut EN 21
22. Crank shaft gear EN 8
23. Camshaft EN 8
24. Compression Ratio valve spindle EN 8
25. Valve Collect EN 8
26. Con. Rod Bearing Boy EN 3 White Metal Liming
Grade 90 IS:25-1961
27. Cam for Exhaust EN 33
28. Cam for fuel pump EN 33
29. Valve Tappet Inlet EN 33
30. Valve Tappet Exhaust EN 33
31. Gudgeon pin EN 33
32. Roller for Fuel pump tappet EN 35
33. Fuel pump tappet pin EN 35
34. Valve stem cap. EN 35
35. End bearing for camshaft CI Gr. 20
36. Fly wheel CI Gr. 20
37. Camshaft end cover bush Gun Metal Grade I IS:306-1960
38. Bush for valve rocker Gun Metal Grade I IS:306:1960
39. Valve rocker EN 3
40. Governor sleeve EN 8
41. Governor weight spindle EN 8
42. Valve Tappet head EN 32 B
43. Shaft for valve rocker EN 3A
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44. Main Plug EN I

45. Auxilliary plug EN I
46. Studs ¾” BSW for Cylinder and Cylinder head EN 3
47. Hex Nuts ¾” BSW EN 3
48. Hex nut 9/16” NSW for Cylinder head EN 3
49. Hex nuts 9/16” BSW EN 3
50. Inlet valve push rod EN 32B
51. Exhaust valve push rod EN 32B
52. Spindle for Idler gear EN 8
53. Tappet for fuel pump EN 8
54. Striking pin for valve rocker EN 33
55. Valve rocket adjusting screw EN 33
56. Fuel injunction equipment ..

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