PROJECT PROFILE ON REGULATED DC POWER SUPPLIES

PRODUCT CODE (ASICC) : 77207

QUALITY AND STANDARDS : IS 7204 :1981

IS7204:1980Stabilized power supplies

(Part 1) Terms and definition

(Part 2) Rating and performance

(Part 3) Radio Interference tests

(Part 4) Tests other than radio frequency

interference

PRODUCTION CAPACITY : 1. Qty.:3000Nos. (perannum) of PSUs 5V,5A.

Value : Rs.30,00000/-

2. Qty.:3000Nos.(perannum) PSUs 30V,2A

Value : Rs.42,00,000

YEAR OF PREPARATION : 2020-2021

PREPAREDANDUPDATEDBY : ELECTRICAL DIVISION

MSME - Development Institute,
Shaheed Capt. Gaur MargOppt.
Okhla Industrial Area, Estate Okhla,
New Delhi:- 110020.
Tele. (91) 011-26838269, 26838068, 6838118.
Tele/Fax No.: (91) 011-23838016.

1
INTRODUCTION

Regulated DC power supplies provide accurate DC voltage, which are derived

from AC mains. These DC supplies are cheaper in nature than the DC sources from
battery. Such supplies provide constant voltage irrespective of load variations for which
they are designed. DC power supplies are used extensively in various electronics
laboratories, industries and communication departments to feed DC voltage to the
electronic modules, R and D sections, institutions and colleges to impart practical
training etc. Present range of electronic equipment produced in the country makes use
of transistors and integrated circuits. These IC’s are designed to work on fixed
regulated DC voltages. Therefore, such supplies have become the part and parcel of
such equipment and are:
1. Preset Power supplies (single or dual supply type)
2. Variable power supplies
Preset Power Supplies (Single or Dual supply type)

These power supplies are generally customs made and preset for fixed voltages
like 5V/10V/15 Volts etc. These supply units are normally mounted on/ integrated into
the electronic equipment.
As such these power supplies are not fitted with any cabinets. These power supplies are
used in computers.

Variable Power Supplies

Variable power supplies are supplies in which the voltage can be varied continuously
with the knob as per requirement. They are generally available in the range of 5 to 30
volts in 0.5 to 10 amps capacities. These supplies are generally used in research
institutions, colleges, practical training centers and electronic industries, etc.

MARKET POTENTIAL
There are hundreds of small-scale units engaged in the manufacture of regulated
DC power supplies in the country. The production of computers, control and
instruments sector, aerospace, defence and telecommunication equipment is steadily
increasing and the demand for such supplies is also proportionately increasing. Some of
the units have been exporting these power supplies to the Middle East countries.

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
2
 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 Chennai. These cost factors are likely to vary
with time and location.
iv. Interest on term loan and working capital loan has been taken at the rate of 16%
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) set up by the State Governments and STQC,
Directorate of the Department of Information Technology, Ministry of
Communication and Information Technology, to manufacture products
conforming to Bureau of Indian Standards.

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.No Name of Activity Period in Months
(Estimated)
1. Preparation of project report 1

2. Registration and other formalities 1

3. Sanction of loan by financial institutions 3

4. Plant and Machinery:

a) Placement of orders
1
b) Procurement 2
c) Power connection/ Electrification 2
d) Installation/Erection of
2
machinery/Test Equipment

5. Procurement of raw materials 2

3
 6. Recruitment of Technical 2

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.

TECHNICAL ASPECTS

Process of Manufacture

The manufacture of DC power supplies involves design assembly andtesting.

The printed circuit boards (PCBs) are to be procured as per design and drawings
prepared. The chassis and front panel are obtained as per order placed on supplier. The
components are soldered on to the PCBs as per circuit diagram. Such PCBs and other
large/ heavy components like power transformers are wired on to the main chasis. The
necessary switches and sockets are fitted and wired. The assembled power supply is
checked for performance and necessary adjustments are made, so as to conform to
specifications already laid down. Latest technique of on card regulators is being utilized
extensively for easy maintenance and quick fault findings.

Quality Control and Standards

IS 7204: 1980 Stabilisedpower supplies DC output
(Part1) Terms anddefinition
(Part2) Rating andperformance
(Part3) RadioInterferencetests
(Part4) Tests other than radio
frequencyinterference

4
 Production Capacity (per annum)
3000 Nos. of PSUs 5V, 5A at Rs. 1000 each = Rs.3000×1000= R s 30,00,000
And
3000 Nos.of variable power supplies 30V 2A @ Rs.1400=3000× 1400 = Rs. 42,00,000

Total Rs.72,00,000

TOTAL= (R s . 30,00,000 + R s 4 2 0 0 0 0 0 ) = R s 7 2 0 0 0 0 0

Motive Power 5 KVA.

Pollution Control

The Govt. 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 Sept. 1992, the production and
use of Ozone Depleting Substances (ODS) like Chlorofluoro Carbon (CFC), Carbon
Tetrachloride, Halos 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.

The following steps are suggested which may help to control pollution in
electronics industry wherever applicable:
i) In electronic industry fumes and gases are released during hand soldering/wave
soldering/Dip soldering, which are harmful to people as well as environment and
the end products. Alternate technologies may be used to phase out the existing
polluting technologies. Numerous new fluxes have been developed containing 2-
10% solids as opposed to the traditional 15-35% solids.
ii) Electronic industry uses CFC, Carbon Tetrachloride and Methyl Chloroform for
cleaning of printed circuit boards after assembly to remove flux residues left
after soldering, and various kinds of foams for packaging.

Many alternative solvents could replace CFC-113 and Methyl Chloroform in

5
electronics cleaning. Other Chlorinated solvents such as Trichloroethylene,
Perchloroethylene and Methylene Chloride have been used as effective cleaners in
electronicsindustry for many years. Other organic solvents such as Ketones and
Alcohols are effective in removing both solder fluxes and many polar contaminants.

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 Govt. 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
desoldering 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

Built up area 250 sq. mtrs.

Office/Stores 50 Sq. mtrs.
Factory 200 sq. mtrs.

6
(ii) Machinery and Equipments

Sl. No. Description Qty. Rate Amount

(Rs.)
1. Bench Grinder 1 6,000 6,000

2. Digital millimeter (4½ digit) 1 10000 10000

3. Dimmer stats (4 and 8 amps) 4 3,000 12000

4. Drilling machine (1/2’) 1 6,000 6,000

5. H V tester 1 6,000 6,000

6. Megger. 1 5000 5000

7. Multimeter Analog 3 1,000 3,000

8. Oscilloscope dual trace (20 2 20,000 40,000

MHz)
9. Digital Panel meters 2 5,000 10,000

10. True RMS meter (4 digit 1 8,000 8,000

11. Installation and electrification 10,000

@ 10% of
machinery and equipments

12. Office furniture and 30,000

equipments

13. Tools Dies and equipments 20,000

(iii) Pre-operative Expenses 10,000
Total 1,70,000
Or Say 1,70,000

B. Working Capital (per month)

(i) Salaries and Wages (per month)

Sl. Description Qty. Rate Amount

No. (Rs.) (Rs.)
1. Accountant 1 25,000 25,000
2. Design Engineer-cum Production in 1 25,000 25,000

7
 charge
3. R and D Design Engineer 1 25,000 25,000
4. Sales manager 1 30,000 30,000
5. Un-skilled workers 1 19,000 19,000
6. Skilled workers 2 20,000 40,000
7. Typist / clerk 1 21,000 21,000
Total 1,85,000
Perquisites @ 15% 27,750
Total 2,12,750

(ii) RawMaterial(permonth)

Sl. No. Description Qty. (sets) Rate (Rs.) Total (Rs.)

(a) For PSUs (5V, 5A) (100 sets)
1. Transformer 100 200 20,000

2. Semiconductor 100 200 20,000

devices (ICs, SCR,
rectifier, diodes,
transistors, LEDs
etc.)
3. Chasis/cabinet with 100 100 15,000
heat sink
4. Printed circuit 100 20 20,000
boards
5. Resistors and 100 200 20,000
capacitors including
filter capacitors and
trim pot.
6. Termination, 100 200 20,000
switches fuse
assembly
potentiometer, hook
up wire, mains,
cards and misc.
hardware etc.
7. Total 1,15,000/-
(b) For Variable Power Supply (30V, 2A) (100 sets)
1. Transformer 100 300 30,000

2. Semiconductor 100 120 12,000

devices (ICs, SCR,
rectifier, diodes,
8
 transistors, LEDs
etc.)
3. Chasis/cabinet with 100 100 11500
heat sink
4. Printed circuit 100 20 2,000
boards
5. Resistors and 100 200 20,000
capacitors including
filter capacitors and
trim pot
6. Termination, 100 200 20,000
switches fuse
assembly
potentiometer, hook
up wire, mains,
cards and misc.
hardware etc.
7. Current/ Volts 100 350 35,000
meters
Total 1,29,000/-
Total Cost of Raw Materials/ Components (per month) (a+b) 2,44,000/-

(iii) Utilities (per month)

Sl. No. Description Amount (Rs.)
1. Power 5000

2. Water 1000
Total 6000

(iv) Other Contingent Expenses (per month)

Sl. Description Amount
No. (Rs.)
1. Advertisement and Publicity 5000/-
2. Consumable stores 5000/-
3. Insurance 2000/-
4. Misc. Expenditure 2000/-
5. Postage and stationery 2000/-
6. Rent 20,000/-

9
 7. Repairs and maintenance 3000/-
8. Telephone/fax 3000/-
Transport charges
9. 5000/-
Total
47,000/-

(v) WorkingCapital
Rs. 5,04,000
(i+ii+iii+iv)
(vi) Working Capital for 3 Months (Rs. 5,04,000 x 3)=Rs. 15,12,000

C. Total Capital Investment

Fixed capital = Rs.1,70,000

Working capital for 3 months= Rs.15,12,000

Total = Rs. 16,82,000

FINANCIAL ANALYSIS

(1) Cost of Production (per annum)

Sl.N Description Amount(Rs.)

o
1. Depreciation on machinery and 17,000/-
equipment @ 10%
2. Depreciation on office furniture 6,000/-
@20%
3. Depreciation on tools @ 25% 5,000/-
4. Recurring expenditure 60,48,000/-
5. Interest on capital investment 2,18,660/-
@13%
Total 62,94,660/-
Or Say 62,95,000/-

10
(2) Sales (per annum)

3000 Nos. of PSUs 5V, 5A at Rs. 1000 each = Rs. 3000 x 1000 =
Rs30,00,000
and
3000 Nos. of variable power supply 30V 2A @ Rs.3000 x 1400 =
Rs. 42,00,000

Total Rs. 72,00,000

Sales Rs.72,00,000
Cost of production -Rs.62,95,000(Minus)
Total Rs.9,05,000

(3) Profit (per annum) (Before Taxes) = Rs. 9,05,000

(4) Net Profit Ratio = Profit (per annum) × 100

Sales (per annum)

= 905000 × 100
7200000
= 12.6%

(6)Rate of Return = Profit (per annum) × 100

Total capital investment

= 905000 × 100
1682000
= 53.8%

11
(7)Break-even Point

Fixed Cost (per annum) (Rs.)

Rent 2,40,000
Depreciation on machinery andequipment @ 10 % 17,000
Depreciation on tools, jigs and fixtures @ 25% 5000
Depreciation on office furniture @ 20% 6000
Interest on total capitalinvestment @ 16% 2,18,600
Insurance and Taxes 24000
40% Salaries and wages 9,43,600
40% other contingent expenses andutilities (excluding 3,00,000
rent and insurance)
Total 17,54,200
or Say 17,54,000

B.E.P.

= Fixed cost × 100

Fixed cost +Profit
= 17,54,000x100
17,54,000+ 9,05000
= 65.9%

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 Electronics 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

12
 an average. However, the percentage of margin money may vary as per bank’s
discretion.

Addresses of Machinery and Equipment Suppliers

1. M/s. British Physical Laboratories 93, Nehru Place,
New Delhi – 110019
2. Rama Electric And Machinery Store676-77, G.B. Rd Delhi 110006
3. M/s. Bharat Electronic Ltd. Jallahalli,
Bangalore.
4. M/s. Chaudhary Trading Co. 1681/11, Bhagirat Place, ChandniChowk,
New Delhi - 110006
5. M/s. E C I L Cherapalli, Hyderabad.
6. M/s. Integral Systems and Components (P) Ltd.
45/7-A, Gubbana Industrial Estate, VI–Block, Rajaji Nagar, Bangalore
7. M/s. Kiber India Mahal Industrial Area, Andheri East, Mumbai - 93
8. M/s. M R Electronics Components Limited
Mount Road, Chennai – 2
9. M/s. Noble Electronics 354, Lajpat Raj Market, Delhi - 110006

10. M/s. Nippen Electrical Instruments 12A, MarolMaroshi Road,

Andheri East, Mumbai -400 059.

Raw Material Suppliers

1. M/s. Transtronix India Pvt. Ltd. 80A, DDA Sheds,
Okhla, Phase–II, New Delhi -1100 20.
2. Link Electrical( India)Shop No.1853/1 Hari Ram Market, Bhagirath Palace,
Delhi 110006
3. M/s. Leader Electronics Corpn.
2-6-33, TsunashimaHijiashiKahoku Ku, Yokohoma,Japan
4. M/s. Pieco Electronics and Electricals Limited
Ramon House,169, Bakbay Reclamation, Mumbai - 400020.
5. M/s. Uptron India Ltd. 10 AdhokMarg, Lucknow–226 001.
6. M/s. Applied Electronics Ltd. A-5, Wagle Industrial Estate,
Thane, Mumbai-40000 4

13