Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

Electric Tandoor

PRODUCT CODE (ASICC) 77740

QUALITY AND STANDARDS IS 302:1979
PRODUCTION CAPACITY Quantity: 10800 Nos. (per annum)
Value : Rs. 42,12,000
YEAR OF PREPARATION 2002 _ 2003
PREPARED BY Small Industries Service Institute
Industrial Estate,
Bamuni Maidan
Guwahati-781021 (Assam)
and
Office of the Development Commissioner
Small Scale Industries
Electrical and Electronics Division
7th Floor,
Nirman Bhavan,
New Delhi-110 011.

Introduction

Tandoor is used to make not only tandoor roti but also non- veg preparations. The traditional tandoor
was made by clay in which we used wood fuel to heat it up. Now-a-days people lead fast life. Every
member of family is working and Electric tandoor is very handy and convenient. That's why tandoor
preparations have not only become popular in whole of this country but also in hotels abroad.

Market Potential

The demand for domestic electrical tandoor has been steadily increasing. As a result of the expansion in
generation of electrical energy in the country, the electric energy does replace other forms

of energy for domestic use. Tandoor is widely used by hotels, restaurants etc.

Basis and Presumptions

i) The basis for calculation of production capacity has been taken on single shift basis on 75%
efficiency.

ii) The maximum capacity utilization on single shift 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 onwards.

iii) The salaries and wages, cost of raw materials, utilities, rents, etc. are based on the prevailing rates in
and around Guwahati. These cost factors are likely to vary with time and location.

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

iv) Interest on term loan and working capital loan has been taken at the rate of 15% on an average. This
rate may vary depending upon the policy of the financial institutions/agencies from time to time.

v) The cost of machinery and equipments refer to a particular make / model and prices are approximate.

vi) The break-even point percentage indicated is of full capacity utilization.

vii) The project preparation cost etc. whenever required could be considered under pre-operative
expenses.

viii) The essential production machinery and test equipment required for the project have been indicated.
The unit may also utilize common test facilities available at Electronics Test and Development Centres
(ETDCs) and Electronic Regional Test Laboratories (ERTLs) and Regional Testing Centres (RTCs).

Implementation Schedule

The major activities in the implementation of the project has been listed and the average time for
implementation of the project is estimated at 12 months:

Sl. Activity Period

No. (In Months)
1. Preparation of project report 1
2. Registration and other formalities 1
3. Sanction of loan by financial 3
institutions
4. Plant and Machinery:
a) Placement of orders 1
b) Procurement 2
c) Power connection/ 2
Electrification
d) Installation/Erection of 2
machinery/Test Equipment
5. Procurement of raw materials 2
6. Recruitment of Technica l2
Personnel etc.
7. Trial production 11
8. Commercial production 12

Notes

1. Many of the above activities shall be initiated concurrently.

2. Procurement of raw materials commences from the 8th month onwards.

3. When imported plant and machinery are required, the implementation period of project may vary
from 12 months to 15 months.

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

Technical Aspects

Process of Manufacture

The process flow chart can be given as below:

(a) Inspection of raw material (Metal sheet, Element etc.)

(b) Fabrication of Tandoor body frame as per design

(c) Fitting of element, Thermostat and switch

(d) Painting of inner and outer body

(e) Electric connection

(f) Checking, inspection, testing

(g) Packing and despatch.

Quality Control and Standards

IS 302:1979

Production Capacity (per annum)

Sl. Item Qty. Rate Total

No. (No.) (Rs.) (Rs.)
1. Electric Tandoor 10800 390 4212000

Motive Power 6 kVA.

Pollution Control

The Government accords utmost importance to control environmental pollution. The small-scale
entrepreneurs should have an environmental friendly attitude and adopt pollution control measures by
process modification and technology substitution.

India having acceded to the Montreal Protocol in September, 1992, the production and use of Ozone
Depleting Substances (ODS) like Chlorofluore Carbon (CFCs), Carbon Tetrachloride, Halons and
methyl Chloroform etc. need to be phased out immediately with alternative chemicals/solvents. A
notification for detailed Rules to regulate ODS phase out under the Environment Protection Act, 1986
have been put in place with effect from 19th July 2000.

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

Energy Conservation

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 Government 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 and capacity building of
Bureau of Energy Efficiency created under the Act.

The following steps may help for conservation of electrical energy:

i) Adoption of energy conserving technologies, production aids and testing facilities.

ii) Efficient management of process/manufacturing machineries and systems, QC and testing equipments
for yielding maximum Energy Conservation.

iii) Optimum use of electrical energy for heating during soldering process can be obtained by using
efficient temperature controlled soldering and de-soldering stations.

iv) Periodical maintenance of motors, compressors etc.

v) Use of power factor correction capacitors. Proper selection and layout of lighting system; timely
switching on-off of the lights; use of compact fluorescent lamps wherever possible etc.

Financial Aspects

A. Fixed Capital

(i) Land and Building (Rent) (Rs.)

(a) Land 500 sq.mtr 50000
@ Rs. 100 per sq.mtr.
(b) Building, built up area - 200 sq.mtr. 300000
@ Rs. 500 per sq.mtr.
Total 350000

(ii) Machinery and Equipments

Machinery

Sl. Description Qty. Rate Total

No. (Rs.) (Rs.)
1. Bench grinder 1 5000 5000
(Double grinder)
2. Sheet rolling machine 1 4000 4000
3. Drill machining (3/4") 1 5000 5000
4. Shearing machine (1200 mm) 1 25000 25000

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

5. Power Hacksaw 1 15000 15000

150 mm
6. Air Compressor with 1 set 15000 15000
gun for painting
7. Hand press No. 8 1 7000 7000
8. Power Press 1 25000 25000
9. Tools, Dies, Fixes 1 set 15000 15000
Total 1,16,000

Test Equipments

Sl. Description Qty. Rate Total

No. (Rs.) (Rs.)
1. Megger 1000V 1 7500 7500
2. High voltage 1 10000 10000
tester, 5 kV
3. Multimeter Digital 1 4000 4000
4. Test panel with 1 set 20000 20000
Ammeter, Voltmeter
and Wattmeter
5. Leakage testing set 1 5000 5000
6. Earthing testing 1 set 2000 2000
connection eqpt.
7. Variable transformer 1 2000 2000
0-440 V
Total 50,500

(A) Electrification and 16,650

installation charge
approximately 10%
of the machinery
and equipment cost
(B) Cost of Office 15,000
equipment,
Working table etc.

Sl. Description Qty. Rate Total

No. (Rs.) (Rs.)
(iii) Pre-operative 5,000
Expenses (Project
Cost, Non-Refundable Deposit), if any
Total 36,650

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

Total Fixed Investment (Rs.)

1) Land and Building 3,50,000
2) Machinery and equipment 1,66,500
3) Pre-operative expenses such as
Consultancy fees, Electricity bill 36,650
Total 5,53,150

B. Working Capital (per month)

(i) Staff and Labour

Sl. Particulars No. Salary Total

No. (Rs.) (Rs.)
(A) Administrative Staff
1. Office Manager 1 4000 4000
2. Accountant/Clerk 1 2000 2000
3. Watchman 1 1200 1200
Total 7200

(B) Technical Staff

1. Supervisor 1 3500 3500

2. Skilled Workers 5 2500 12500
3. Semi-skilled workers 8 2000 16000
4. Un-skilled workers 8 1500 12000
5. Helper 5 1200 6000
Total 50,000

Total (A+B)= 50,000 + 7200 57,200

Perquisites @ 15% of total salary 8,580

Total 65,780

(ii) Raw Material (per month) All Indigeneous 900 Tandoor/month

Sl. Name of Item Quantity Rate Total

No. (Rs.) (Rs.)
1. CRC Sheet 3600 kg 20/kg 72,000
2. Nichrome 45 kg 500/kg 22,500
resistance wire
3. Ceramic roofs 900 5/pc 4,500
4. Bakelite handle 900 Rs. 20/pc 18,000
5. Thermostat 900 Rs. 40/pc 36,000
6. MS Angles LS Rs. 50/set 45,000
7. Switch, connection LS

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

Flexible cord, Two

pin Outlet and
other misc. items
Total 1,98,000
(iii) Utilities (per month) (Rs.)
Power 3000
Water 500
Total 3500

(iv) Other Contingent Expenses (per month) (Rs.)

(a) Postage and stationery 4000
(b) Repair and maintenance 3500
(c) Transport 3500
(d) Adv. and publicity 9000
(e) Insurance 1000
Total 21,000

(v) Total Recurring Expenses (per month) (Rs.)

1) Personnel 65,780
2) Raw material 1,98,000
3) Utilities 35,000
4) Other contingent expenses 21,000
Total 2,82,280

C. Total Capital Investment

Fixed capital Rs. 5,53,150

Working capital (for 3 months) Rs. 8,46,840
Total Rs. 13,99,990

Financial Analysis

(1) Cost of Production (per year) (Rs.)

i) Cost of production 33,87,360
(recurring cost)
ii) Depreciation on machinery, 16,650
fixtures and equipment @ 10% of cost
iii) Depreciation on office equipment 3,000
@ 20%
iv) Interest on total investment 2,12,698
@ 15%
Total 36,19,708

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

(2) Turnover (per annum)

Sl. Item Qty. Rate Total

No. (Rs.) (Rs.)
1. Electric Tandoor 10800 390 4212000

(3) Net Profit

= Sales - Cost of production = Rs. 4212000 - 3619708 = Rs. 592292

(4) Net Profit Ratio

= Net profit
Annual turnover
= 592292
4212000

= 14.06%

(5) Rate of Return on Total Capital Investment

= Net profit

Total capital investment

= 592292

1399990

= 42.3%

(6) Break-even Point

Fixed Cost (Rs.)

1) Total Depreciation 19650
2) Interest on investment 212698
3) 40% of personnel 26312
4) 40% of utilities 1400
5) 40% of other contingent 8400
expenses
Total 2,68,460

B.E.P

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

=Fixed Cost
Fixed Cost + profit
= 268460
592292 + 592292

= 31%

Additional Information

a. 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.

b. The Electrical 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, keep abreast
with the new technologies in order to keep them in pace with the developments for global competition.

c. 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
Systems and ISO 14001 defines standards for Environmental

Management System for acceptability at international level. The unit may therefore adopt these
standards for global competition.

d. The margin money recommended is 25% of the working capital requirement at an average. However,
the percentage of margin money may vary as per bank's discretion.

Addresses of Plant, Machinery and Raw Material Suppliers

1. M/s. Rajdhani Tele Elect. Product Pvt. Ltd. F. A. Road, Kumarpara, Abhay Ch. Dutta Lane,
Guwahati

2. M/s. Assam Electricals,

(for Control switches), Tinsukia, Assam

3. M/s. Applied Electronics Ltd. 4th Floor, 4E/14,

Jhandewalan Extension, New Delhi.

4. M/s. Prem Engg. Works Okhla Indl. Estate,

New Delhi-20.