PROJECT REPORT

Of

WINDSHIELD WIPER

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Windshield Wiper Manufacturing unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : [email protected]
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE
1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) : xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxx
Mobile xxxxxxx

5 Product and By Product : WINDSHIELD WIPER

6 Name of the project / business activity proposed : WINDSHIELD WIPER MANUFACTURING UNIT

7 Cost of Project : Rs.16.82 Lakhs

8 Means of Finance
Term Loan Rs.10.73 Lakhs
Own Capital Rs.1.68 Lakhs
Working Capital Rs.4.41 Lakhs

9 Debt Service Coverage Ratio : 2.88

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 40%

13 Employment : 12 Persons

14 Power Requirement : 20.00 HP

Wiper Blade, Galvanized Steel, Pivot Socket, Spring

15 Major Raw materials
: Steel sheet, two end ferrules and rubber strip

16 Estimated Annual Sales Turnover (Max Capacity) : 94.16 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 11.12
Furniture & Fixtures 0.80
Working Capital 4.90
Total 16.82

MEANS OF FINANCE
Particulars Amount
Own Contribution 1.68
Working Capital(Finance) 4.41
Term Loan 10.73
Total 16.82
 WINDSHIELD WIPER MANUFACTURING UNIT

Introduction:

A vehicle's wiper system is an integrated system for removing rain, snow, ice, and debris
from the glass or windshield. It has a significant impact on visibility and the safety of
passengers and the vehicle. It is a legal necessity in every automobile. It's in nearly every
vehicle, including cars, trucks, railroad engines, and cabin-equipped boats. Pivot - left or
right-hand drive, sequential sweep, single blade arm, mono blade, pantograph system, and
twin windscreen wiper arms are some of the types of wipers used in automobiles. The
functioning of almost all present wiper mechanisms is powered by an electric motor.
Pneumatic drives are also utilized to drive wiper arms in some situations.
Uses & Market Potential:

The following are the uses of the windshield wiper system:

1. The wiper cleans the front and rear windshields of the vehicle

2. Removal of water and snow

3. Removal of dirt

According to a recent research released by various researchers, the worldwide

Automotive Windshield Wiper Systems market was valued at 7228.18 million USD in
2020 and would expand at a CAGR of 4.26 percent from 2020 to 2027. Automobile
manufacturing is projected to increase, propelling the sector forward. Furthermore, the
growing need for rear wiper systems in the low-end automobile market is driving up
demand for these goods. Rain- sensing wiper systems are expected to boost industry
development because they improve vehicle safety by eliminating driver distraction caused
by manual wiper activation during inclement weather. Over the projected period, the
launch of these goods is likely to significantly boost industry growth. Because of the
existence of important automotive component manufacturers like as Robert Bosch GmbH
and Trico, regions such as North America and Europe are contributing to the industry's
growth. Blades, couplings, and motors are among the goods offered by the firms.

Product:
Windshield Wiper

Raw Material:
Basic raw material is Wiper Blade, Galvanized Steel, Pivot socket, spring steel sheet, two
end ferrules and rubber strip.
Manufacturing Process:

Area:

The industrial setup requires space for Inventory, workshop or manufacturing area, space
for power supply utilities and polishing area. Also, some of the area of building is required
for office staff facilities, office furniture, etc. Thus, the approximate total area required
for complete industrial setup is 1200-1800Sqft.
Cost of Machines:
Machine Unit Rate Price
Centre Lathe Machine 1 118000 118000
Power Press Machine 1 98000 98000
Cylindrical Grinder Machine 1 158000 158000

Guillotine Shearing Machine 1 265000 265000

Hydraulic Press Brake Machine 1 250000 250000

Metal Cutting Bandsaw Machine 1 60000 60000

Scroll Bender Machine 1 28000 28000

Pillar Drilling Machine 1 35000 35000

Material handling and other equipment’s - 100000 100000

Total Amount 1112000

Power Requirement- The estimated Power requirement is taken at 20 HP.

Manpower Requirement– Following manpower is required:

 Machine operator-2
 Skilled/unskilled worker-3
 Helper-4
 Manager cum Accountant-1
 Sales Personnel-2

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 2.56 3.63 4.84 6.83
Add: Additions 1.68 - - - -
Add: Net Profit 4.38 5.26 6.02 6.99 8.08
Less: Drawings 3.50 4.20 4.80 5.00 5.50
Closing Balance 2.56 3.63 4.84 6.83 9.41
CC Limit 4.41 4.41 4.41 4.41 4.41
Term Loan 9.54 7.15 4.77 2.38 -
Sundry Creditors 1.35 1.51 1.69 1.86 2.05

TOTAL : 17.86 16.70 15.71 15.49 15.87

APPLICATION OF FUND

Fixed Assets ( Gross) 11.92 11.92 11.92 11.92 11.92

Gross Dep. 1.75 3.24 4.51 5.59 6.51
Net Fixed Assets 10.17 8.68 7.41 6.33 5.41

Current Assets
Sundry Debtors 2.66 3.16 3.55 3.95 4.39
Stock in Hand 3.59 4.04 4.50 4.97 5.46
Cash and Bank 1.44 0.82 0.25 0.24 0.60

TOTAL : 17.86 16.70 15.71 15.49 15.87

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 57.00 67.67 76.00 84.69 94.16

Total (A) 57.00 67.67 76.00 84.69 94.16

B) COST OF SALES

Raw Material Consumed 27.00 30.29 33.71 37.25 40.92

Elecricity Expenses 2.24 2.46 2.69 2.91 3.13
Repair & Maintenance 1.43 1.69 1.90 2.12 2.35
Labour & Wages 12.35 14.57 16.76 18.77 21.02
Depreciation 1.75 1.49 1.27 1.08 0.92
Cost of Production 44.76 50.51 56.32 62.13 68.35

Add: Opening Stock /WIP - 2.24 2.53 2.82 3.11

Less: Closing Stock /WIP 2.24 2.53 2.82 3.11 3.42

Cost of Sales (B) 42.52 50.22 56.03 61.84 68.03

C) GROSS PROFIT (A-B) 14.48 17.45 19.97 22.86 26.13

25.40% 25.79% 26.28% 26.99% 27.75%
D) Bank Interest i) (Term Loan ) 1.16 0.95 0.69 0.43 0.16
ii) Interest On Working Capital 0.48 0.48 0.48 0.48 0.48
E) Salary to Staff 7.31 8.62 9.92 11.31 12.66
F) Selling & Adm Expenses Exp. 1.14 1.89 2.43 2.96 3.77

G) TOTAL (D+E+F) 10.10 11.95 13.52 15.18 17.08

H) NET PROFIT 4.38 5.50 6.45 7.68 9.05

7.7% 8.1% 8.5% 9.1% 9.6%
I) Taxation - 0.23 0.43 0.69 0.97

J) PROFIT (After Tax) 4.38 5.26 6.02 6.99 8.08

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 1.68 - - - -

Reserve & Surplus 4.38 5.50 6.45 7.68 9.05
Depriciation & Exp. W/off 1.75 1.49 1.27 1.08 0.92
Increase In Cash Credit 4.41 - - - -
Increase In Term Loan 10.73 - - - -
Increase in Creditors 1.35 0.16 0.17 0.18 0.18

TOTAL : 24.30 7.15 7.89 8.94 10.16

APPLICATION OF FUND

Increase in Fixed Assets 11.92 - - - -

Increase in Stock 3.59 0.45 0.46 0.47 0.49
Increase in Debtors 2.66 0.50 0.39 0.41 0.44
Repayment of Term Loan 1.19 2.38 2.38 2.38 2.38
Taxation - 0.23 0.43 0.69 0.97
Drawings 3.50 4.20 4.80 5.00 5.50
TOTAL : 22.86 7.77 8.47 8.94 9.79

Opening Cash & Bank Balance - 1.44 0.82 0.25 0.24

Add : Surplus 1.44 - 0.62 - 0.58 - 0.01 0.36

Closing Cash & Bank Balance 1.44 0.82 0.25 0.24 0.60
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 2.24 2.53 2.82 3.11 3.42
Raw Material
(15 Days requirement) 1.35 1.51 1.69 1.86 2.05

Closing Stock 3.59 4.04 4.50 4.97 5.46

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 3.59
Less:
Sundry Creditors 1.35
Paid Stock 2.24 0.22 2.01

Sundry Debtors 2.66 0.27 2.39

Working Capital Requirement 4.41

Margin 0.49

MPBF 4.41
Working Capital Demand 4.41
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 10.73 10.73 0.30 - 10.73
Iind Quarter 10.73 - 10.73 0.30 - 10.73
IIIrd Quarter 10.73 - 10.73 0.30 0.60 10.13
Ivth Quarter 10.13 - 10.13 0.28 0.60 9.54
1.16 1.19
II Opening Balance
Ist Quarter 9.54 - 9.54 0.26 0.60 8.94
Iind Quarter 8.94 - 8.94 0.25 0.60 8.34
IIIrd Quarter 8.34 - 8.34 0.23 0.60 7.75
Ivth Quarter 7.75 7.75 0.21 0.60 7.15
0.95 2.38
III Opening Balance
Ist Quarter 7.15 - 7.15 0.20 0.60 6.56
Iind Quarter 6.56 - 6.56 0.18 0.60 5.96
IIIrd Quarter 5.96 - 5.96 0.16 0.60 5.36
Ivth Quarter 5.36 5.36 0.15 0.60 4.77
0.69 2.38
IV Opening Balance
Ist Quarter 4.77 - 4.77 0.13 0.60 4.17
Iind Quarter 4.17 - 4.17 0.11 0.60 3.58
IIIrd Quarter 3.58 - 3.58 0.10 0.60 2.98
Ivth Quarter 2.98 2.98 0.08 0.60 2.38
0.43 2.38
V Opening Balance
Ist Quarter 2.38 - 2.38 0.07 0.60 1.79
Iind Quarter 1.79 - 1.79 0.05 0.60 1.19
IIIrd Quarter 1.19 - 1.19 0.03 0.60 0.60
Ivth Quarter 0.60 0.60 0.02 0.60 - 0.00
0.16 2.38

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R
PARTICULARS I II III IV V

CASH ACCRUALS 6.13 6.75 7.29 8.07 9.00

Interest on Term Loan 1.16 0.95 0.69 0.43 0.16

Total 7.29 7.70 7.98 8.50 9.16

REPAYMENT
Repayment of Term Loan 1.19 2.38 2.38 2.38 2.38
Interest on Term Loan 1.16 0.95 0.69 0.43 0.16

Total 2.36 3.33 3.07 2.81 2.55

DEBT SERVICE COVERAGE RATIO 3.10 2.31 2.60 3.02 3.60

AVERAGE D.S.C.R. 2.88

Assumptions:
1. Production Capacity of Windshield Wiper Manufacturing unit is taken at 200
Units per day. First year, Capacity has been taken @ 50%.

2. Working shift of 10 hours per day has been considered.

3. Raw Material stock and Finished goods closing stock has been taken for 15
days.

4. Credit period to Sundry Debtors has been given for 15 days.

5. Credit period by the Sundry Creditors has been provided for 14 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 20 HP.

10. Selling Prices & Raw material costing has been increased by 3% & 2%
respectively in the subsequent years.
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
reflect the views of the industry which are drawn from various research material
sources from internet, experts, suppliers and various other sources. The actual
cost of the project or industry will have to be taken on case to case basis
considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is
intended for general guidance only and must not be considered a substitute for a
competent legal advice provided by a licensed industry professional. SAMADHAN
hereby disclaims any and all liability to any party for any direct, indirect, implied,
punitive, special, incidental or other consequential damages arising directly or
indirectly from any use of the Project Report Content, which is provided as is, and
without warranties.