Automobile Silencer

AUTOMOBILE SILENCER 1.

INTRODUCTION

Silencer is a device used in automobile vehicles to reduce the noise produced by the exhaust gases of the engine. Silencer is also used in many other engines and generators. The size, shape and construction vary according to the type and size of the engine. 2.

MARKET POTENTIAL

There are actually some 180,000 registered motor vehicles in Mauritius. The production of silencers has therefore a very good potential as vehicles owners often need to replace this component. 3.

RAW MATERIALS

Raw materials consist mainly of mild steel/aluminium/stainless steel sheets and tubings. 4.

MANUFACTURING PROCESS

The process of manufacturing silencers does not involve any special technology as it is a simple press working process. The sheets are cut into the required size and shape. These sheets are then given the desired shape with the help of a power press, an edge folder and a bending roller. The mufflers are also made out of sheet with the help of presses. These mufflers are then gas welded in one half of the silencer. The other half of the silencer is gas welded with the tubing according to the requirement. They are finally spray painted and ready to be mounted on vehicles. 5.

PRODUCTION EQUIPMENT

The production equipment comprise a shearing machine, a power press, a sheet bending roller, a bench grinder, an edge folder, a welding set and other small tools. 6.

COST OF PROJECT The cost of project is estimated at Rs 375,000. Rs, 000 Production Equipment Working Capital (2 months expenses)

300,000 75,000 ----------375,000 ======

7.

FINANCIAL STRUCTURE The project could be funded as follows: Rs, 000 Promoter’s Capital DBM Loan `

8.

100,000 275,000 ----------375,000 ======

PROFITABILITY

With a turnover of Rs 510,000 during the first year of operation and a total cost of production of Rs 476,000, a net profit of Rs 34,000 is expected to be realized. 9.

TRAINING

IVTB runs training courses in sheet metal work, welding and manufacture of simple press tools. These courses provide trainees with the basic skills and knowledge required to manufacture components such as automotive silencers. 10.

IMPLEMENTATION SCHEDULE 1. 2. 3. 4. 5. 6.

11.

Registration of Business Registration with SEHDA Approval of BLP Preparation of Business Plan Sanction of Financial Support Commissioning and installation of machinery

SUPPLIERS OF EQUIPMENT 1.

Albert Trading Ltd 17 Brabant Street Port Louis

2.

Andre Nemorin Ltd Grewals Lane Pailles

3.

Robert Le Maire Ltd Royal Road Bell Village

TIME FRAME 1 day 1 day 3 -15 days 1 week 1 month 1 month

12.

PROFIT & LOSS ACCOUNT Rs Turnover -

100 mild steel silencers @ Rs 1000 pc100,000 100 aluminium silencers @ Rs 1600 pc160,000 100 stainless steel silencers @ Rs 2500 pc- 250,000 510,000

Cost of sales (sheets, tubings) Gross Profit

200,000 ----------310,000 =======

Overheads Rent Salaries (2 persons) Consumables Bank Charges Depreciation Electricity/water/telephone Miscellaneous Expenses

NOTE:

36,000 130,000 10,000 30,000 45,000 15,000 10,000 ----------276,000 ======

It is to be underlined that this project profile is meant to facilitate decision making by entrepreneurs at the time of identifying business ideas. The exercise is based on a number of assumptions which may vary from business to business. As such every attempt has been made to provide as far as possible correct information and figures. However, implementation of the project and the operation of the business will depend upon a number of factors, including, the skills of the entrepreneur, quality of products and marketing strategy. The authors do not bear responsibility for changes witnessed during the implementation and operation.

19 August 2008