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Entrepreneurship Project: Ice plant INSTITUTE OF TECHNICAL EDUCATION AND RESEARCH BHUBANESWAR
DEPARTMENT OF APPLIED ELECTRONICS & INSTRUMENTATION ENGINEERING
ACKNOWLEDGEMENT
We take this opportunity to express our hearty thanks to all those who individually as well as collectively helped us in the successful completion of this project. We are thankful Mihir Mohanty, H.O.D, Department of AE & I engineering and also thankful to all the faculties of ITER college For having permitted us to carry out this project and for their constant advice.
Contents:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. INTRODUCTION OF ENTREPRENURSHIP CONCEPT AND DEFINATION ENTREPRENEURIAL PHILOSOPHY EXPECTATIONS OF ENTREPRENEURSHIP CHARACTERISTICS OF ENTREPRENEUR CHALLENGES FOR ENTREPRENUERSHIP PROJECT SUMMARY PROJECT PROFILE INTRODUCTION MARKERPOTENTIAL TECHNICAL ASPECT FINANCIAL ASPECT WORKING CAPITAL ANALYSIS CAPITAL INVESTMENTS COST OF PRODUCTION TURN OVER PER YEAR BREAK EVEN ANALYSIS
PREFACE
During final semester of B.TECH in AE&I ENGINEERING as a curriculum assignment has to be taken as an entrepreneurship project. Our entrepreneurship project is to establish an ice plant based upon the peripheral market demand of Bhubaneswar. A complete task of starting from the concept analysis of project preparation, the entire has been done under the guidance of our project guide Er. B.P.MISHRA.
Our entrepreneurship project is associated with establishment of an ice plant basing upon the market demand for different purposes. Though Orissa is on the way of industrialization, emphasizing on establishing a ice plant unit will be a profitable aspect for entrepreneurs. Same time this will be helpful for socioeconomic reformation for economically backward Orissa.
INTRODUCTION of ENTREPRENEURSHIP
Do you know that there are millions of unemployed youth in the country and the time you graduate, this number would have increased substantially? Do you want to be part of that group which keeps knocking from pillar to post, checking with employment exchanges, relatives, friends, and neighbours and still not able to get a job to their liking and then settle for a second or third rate job? You can also choose to be like Mr. Patel of Nirma who was a chemists assistance and has a Rs. 2500 crore company today. Did you know that the original Mr. Bata was a cobbler? And now has stores in more than 30 countries all over the world. Or you could be like Dhiru bhai Ambani who started life as a clerk in a French company in Aden. He was not born into a business
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1-ENTREPRENEUR An entrepreneur is a person who starts an enterprise. He searches for change and responds to it. A number of definitions have been given of an entrepreneur-The economists view him as a fourth factor of production along with land, labour and capital. Entrepreneurs are innovators who come up with new ideas for products, markets or techniques. To put it very simply an entrepreneur is someone who perceives opportunity, organizes resources needed for exploiting that opportunity and exploits it. A person who takes the initiative in combining land, labour and capital, the three fundamental factors of production, to produce a good or service. Computers, mobile phones, washing machines, ATMs, Credit Cards, Courier Service, and Ready to eat Foods are all examples of entrepreneurial ideas that got converted into products or services.
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2-ENTREPRENEURSHIP Entrepreneurship can be described as a process of action, an entrepreneur undertakes to establish his enterprise. Entrepreneurship is a creative activity. It is the ability to create and build something from practically nothing. It is a knack of sensing opportunity where others see chaos, contradiction and confusion. Entrepreneurship is the attitude of mind to seek opportunities, take calculated risks and derive benefits by setting up a venture. It comprises of numerous activities involved in conception, creation and running an enterprise. According to Peter Drucker Entrepreneurship is defined as a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation. Entrepreneurship is a discipline with a knowledge base theory. It is an outcome of complex socio-economic, psychological, technological, legal and other factors. It is a dynamic and risky process. It involves a fusion of capital, technology and human talent. Entrepreneurship is equally applicable to big and small businesses, to economic and non-economic activities. Different entrepreneurs might have some common traits but all of them will have some different and unique features. If we just concentrate on the entrepreneurs then there will be as many models as there are ventures and we will not be able to predict or plan, how and where, and when these entrepreneurs will start their ventures. Entrepreneurship is a process. It is not a combination of some stray incidents. It is the purposeful and organized search for change, conducted after systematic analysis of opportunities in the environment.
3-ENTERPRISE Entrepreneur is a person who starts an enterprise. The process of creation is called entrepreneurship. The entrepreneur is the actor and entrepreneurship is the act. The outcome of the actor and the act is called the enterprise. An enterprise is the business organization that is formed and which provides goods and services, creates jobs, contributes to national income, exports and overall economic development.
FUNCTIONS OF ENTREPRENEUR
An entrepreneur frequently has to wear many hats. He has to perceive Opportunity, plan, organize resources, and oversee production, Marketing and liaison with officials. Most importantly he has to Innovate and bear risk. The main functions of an entrepreneur are as Follows:
Risk and uncertainty bearing: According to Hozelist an entrepreneur performs the function of risk and uncertainty bearing. Every decision pertaining to development of new products, adapting new technologies, opening up new markets involves risk. Decision-making in an environment of uncertainty requires anticipation of risk. Profit is said to be the reward for anticipating and taking such risks. However it is pertinent to mention that the entrepreneur is not a gambler, he only takes calculated risks. An entrepreneur develops the art of decision-making under conditions of uncertainty as a matter of survival.
2.
Organization building: An entrepreneur has to organize men, Material and other resources. He has to perform the functions of Planning, co-ordination and control. He has to use his leadership Qualities to build a team, generate resources and solve problems. With his organizational skills an entrepreneur builds an enterprise from scratch, nurtures it and makes it grow.
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Entrepreneurial philosophy
must
be
accepted
as
learning
Personal growth.
Expectations of entrepreneurship
Expectations of entrepreneurship: It is expected from entrepreneurs that they will help :1. 2. 3. 4. 5. 6. Increase number of industries Increase production. Increase employment Earn foreign exchange through exports Develop the underdeveloped parts of the country Economical development
Characteristics of entrepreneur
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Characteristics of entrepreneur: 1. 2. 3. 4. 5. 6. Task-result oriented Risk taker Leadership Self confidence Originality Future oriented
Testing facilities: - because of small scale industries are situated in far flung areas therefore it is not possible to service by one or two central laboratory. We suggest that educational institution even in small
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Involvement of industrial associations: - we feel that many problems of small scale can be taken care of industrial association are involved in a big way.
4.
Infrastructure development: - we small suffer maximum from lack of infrastructure development. The quality of power is bad and the power available is very high in cost. This must be corrected. Roads are bad. Communication facilities are not upto the mark.
5.
Credit: - the credit is still not available in small scale industries; the credit guarantee fund created by SIDBI is not being exploited as there is still short coming in the scheme.
6.
Skill up gradation: - small scale industries are known for providing on job training. But in post WTO era when cost cutting is the order of the day, the people are running small scale industries must be skilled and this skill must be up graded continuously so that they are in the job and no unemployment results.
7.
Marketing:- the present market assistant scheme is most welcome. More such schemes are require. Small scale industries are being bundled out of the market by aggressive advertisement done by industries and multi nationals.
8.
Removal of inspector raj:- a small scale industry generally a single man soul. He cannot find time to attend all the inspectors visiting a small scale factory. The inspector raj must be finished.
10.
Conclusions can be taken considering above challenges. SSI units in the following areas will have a bright future and compete with the world class industries as these are the area of our strength. 1. 2. 3. 4. 5. 6. 7. Tourism and hotel industry Dairy industry Food processing industry Shoe and leather industry Forging unit Steel alloy casting Plastic processing industry
SUMMARY
In recent decades the role of an entrepreneur has been considered of very great significance in accelerating the pace of growth and economic development in both the developed and developing countries. An entrepreneur is a person who perceives opportunities, organizes the resources needed to exploit the opportunity and sets up an enterprise. The process of setting up an enterprise is called entrepreneurship.
PROJECT PROFILE
PRODUCT: ICE PLANT/ICE BLOCK
PRODUCTION CAPACITY
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INTRODUCTION:
Water when made into solid mass by the action of cooling is known as Ice. It is one of the essential modes for short term preservation of highly perishable commodities such as marine foods, fresh meat and poultry products, dairy products, fruits and vegetables. These goods can be stored for two to three days with ice which facilitates the transportation of these foods to the consumer market. Ice is also used in the chemical, pharmaceutical, canning and freezing industries. It is being used for chilling synthetic fruit beverages.
Ammonia Compressors Condensers / Heat Exchangers Ammonia Receiver Cooling Coil / Evaporator Chilling Tank Paneling (Electrical Equipments)
Ammonia Compressors:
Ammonia compressors designed with state-ofthe-art technology for industrial & commercial refrigeration and low temperature applications. Compressors are V belt driven and are suitable to operate with Ammonia (NH3) & Freon [12 (CCl2F2), 22 (CHClF2)] as refrigerant. Robust construction, excellent performance and power saving features and hallmarks of the products.
Ammonia Receiver:
Ammonia receiver can control the supply and demand relation between the condensers and the evaporator, prevent excessive liquid ammonia from staying in the condenser, and maintain a certain level in the liquid receiver to prevent gas from going into the liquid pipe line. The ammonia in the system can be stored in the ammonia receiver to avoid loss of the ammonia before the refrigerating system is repaired. Therefore, the volume of the ammonia storage should be considered before buying it.
Chilling Tank:
Chilling Tank consists of three parts: 1) Ice Tank
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The ice tank contains the direct expansion coils, equally distributed throughout the tank and these coils are submerged in brine. The tank is provided with a suitable frame of hard wood for support the ice cans and a propeller or agitator for keeping the brine in motion: the brine in the tank acts as a medium of contact only, the ammonia evaporating in the ice coils extracts the heat from the brine, which again absorbs the heat for the water in the cans. The tank itself should not be much larger than is necessary to hold the cans, the coils, and the agitator. About two inches should be left between the moulds and three inches between the pipes and the moulds. Insulation of Ice Tank: Insulation of the ice tank is accomplished by using twelve to eighteen inches of good insulating material on each of the sides and not less than twelve inches under the bottom. Ice Block: Commercial sizes of Ice cans vary with the weight of ice cakes required. The cans are made to contain about 5% more than their rated capacity to compensate for thawing.
Dimensions Gauge Gauge Size of Size of Plain or Weight Weight of Steel, of Steel, Ice Band Grooved per Can per Can Width Length Height Galv. Galv. 50
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12
28
1.5
Plain
18
25
APPLICATIONS:
Ice Making plants are used in different applications like :
MARKET POTENTIAL
MARKET POTENTIAL: Except for upper middle class and rich households who own refrigerators, there is hardly any households who are not using ice during summer season in one form or other. It is also used by the tea stalls, hoteliers, restaurants, clubs and industrial houses for storage and chilling purpose. In short, it is being used extensively in all urban areas, small
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BASIS AND PRESUMPTION: 1. Eight working hours per day and 360 days per annum has been considered for preparation of the scheme. 2. 80% of the maximum capacity utilization of machinery has been considered. 3. The cost of land and building and machinery are taken as per the requirement of the entrepreneur. 4. Rate of interest has been considered as 12.5% per annum. IMPLEMENTATION SCHEDULE: The time required for completing each activity of the project will be as follows: 1. Project report preparation, selection of site And provisional registration as SSI months 3
2. Arrangement of land, selection of machines, Approval of loan, placement of order for machinery 3 months 3. 4. Land development, procurement of machinery 3 months Erection and commissioning, trial, production production 3 months and then commercial production
TECHNICAL ASPECT
1. Process of Manufacture: The process of manufacturing Ice is very simple. The Ammonia or Freon gas coming from the cooling coil at low temperature and pressure is compressed into liquid and is passed through the cooling coils fixed in the freezing tank. Due to the low boiling point of Freon/Ammonia it changes its state from liquid to vapour and is condensed inside the condenser. The tank contains brine of 30% salt. The cold brine is circulated by agitation to maintain uniform temperature throughout the tank. The brine temperature is considerably reduced to 15oF. This takes about 24 hours. After the brine reaches the operating temperature, the ice cans are filled with the water and are immersed inside the brine tank in such a way that the level of the brine remains below the level of the top of the Ice can. Due to the high freezing point of water comparing to brine, the water in the can is solidified at 30oF to form ice. To get solid clear ice, a small quantity of air is passed into the cans. It takes about 18 hours to freeze a 50 kg. can, 24 hours to freeze 70 kg. and 48 hours to freeze 140 kgs.
2. Quality Control Standard: As per ISI specification No.IS:3957. 3. Production capacity (Per Annum):
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4. Pollution control: As this product is manufactured from water there is no pollution problem involved.
FINANCIAL ASPECT
1. Land: 20,000 sq.ft. @ Rs.175/Sq.ft 32,00,000 Shed area: =10,50,000/3,000 sq.ft @ Rs. = 350/sq.ft =80,000/=
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S.n o
Description
Qty.
Value
SECTION A : 1. Kirloskar make Ammonia Two compressor Model KC-3 with accessories as suction and discharge and oil pressures gauges V belts, motors pully shide rails and foundation incharge bolts 75 HP Motor, make Kirloskar of Two GFC slip ring, 1440 RPM 3 phase, 50 cycle 400/440 volts, A/c supply each will be supplied by us. 75 HP, MEI or Kilborn or OCB or Two BEE make oil immersed stater suitable for the above motor will be supplied by us Oil separator made of 10 or 12 One mm x 16 dia x 4 length sheet or seamless pipe complete with all its fittings, etc. will be supplied by us Atmospheric type condensor Eight 3,00,000/p er = 6,00,000/-
2.
3.
4.
5.
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2,00,000/Page 26
SECTION B : 6. Ammonia receivers: Ammonia gas storing, receiver made out of C class heavy pipe or sheet 12 mm thickness of 20 or 22 dia.x 16 or 18 longx10 or 12 mm thickness complete with inlet outlet charging valve, safety and gauge valves, etc. 7. Cooling coils: Refrigeration Trunk or V type cooling coil made out of 1.1/4. Tata make C class Black pipe suitable for the above plant, complete with accummulator and inlet and out headers and valve fittings. 8. Condenser Water pumps: 7.5 HP Mono Block Centrifugal water circulating pump, suitable for operating on 400/440 volts, 3 phase, 50 cycles and 2800 RPM
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One
50,000
One
1,40,000
One
25,000
13.
63,000
14.
22,000
SECTION C : 16. One lot Ice cans 120 nos. Ice made out of 18 gauge of G.I. sheet of 11x22x48 size fitted with heavy bending steel plate will be supplied. One lot of G.I. pipe and pipe . fittings for condensor water circulating pump and compressor Jacket cooling, etc. will be supplied One lot wood for making wooden frame and covering Ice Can Kanchcha of the chilling tank will be cost for 2 nos. tanks will be supplied. One lot Brain water of Hydrometer and thermometer will be supplied One lot Ammonia gas 1,80,000
17.
25,000
18.
60,000
19.
5,000
20.
Ice plant
40,000
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25,000
22.
60,000
23.
PRE-OPERATIVE EXPENDITURE: Project profile Telephone connection Travelling expr. Office Stationery Water distribution & pipe line works 40,000 Electrification Other misc. expr. 30,000 500 82,800/300 3000 4000 5000
The raw material used to prepare Ice block are water and ammonia. Water is collected by using motor from boring. Ammonia gas is charged once in a year. The average ammonia consumption per month is 1500/-.for one set of machinery Common salt,vice bran etc Ammonia Lubricants for motor,etc.
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= = = 4000 500
2000
B.
UTILITY (P.M.):
To make 7.2 Ton ice per day: Electricity40,000 KWH @ 5 2,00,000 C. OTHER CONTINGENT EXPR. PER MONTH:
= = 2000 5000 =
1000 2000
2000
12000
D.
S.no.
Designation Salary Supervisor 15000 Technical person 12000 Skilled workers 24000
No.
1) 2) 3)
CAPITAL INVESTMENT :
cost cost
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TURNOVER (PER YEAR) : Ice block of 120 kg, TOTAL 2600 ton. @ Rs.1.80/kg.(turnover) PROFIT: 46,80,000 26,84,770 = 46,80,000/=19,95,230/42.63 %
Total sell = fixed cost +variable cost + profit =16,24,520 + 10,60,250 + 19,95,230 =46,80,000 Break Even Point = Total sell * fixed cost Total sell variable cost = 46,80,000 * 16,24,520 46,80,000 10,60,250 = 21,00,353.23/-
CONCLUSION
The main reason for planning for establishment of ice manufacturing firm is because it is highly profitable, it has lower capital investment. Therfore, money invested can be recovered quickly and high profits can be released within a couple of years of setting of the business. This project will be successfully implemented within the 3 months after approval of concerned authorities. The commercial production from the unit may be started within 6 months of approval if everything goes right.
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BIBLIOGRAPHY:
M/s. Bhubaneswar Ice Factory, Mancheswar Industrial Estate, BBSR. 2. M/s.Frick India Ltd.,Poonam Bldg., 5/2 Russel Street,Calcutta-71. 3. M/s.Asian Refrigeration, 9/2 Temple Street, Calcutta-700072. 4. M/s.Guru Nanak Refrigerators Corpn., 18/30, St.No.5 New Rohtak Road,New Delhi. 5. M/s.Refrigeration Trading Co., At/PONischintakoili,Near Kalyani Talkies, Dt.Cuttack.
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