11  Download (0)

Full text








Electronic Gas Lighter.


Category : Electrical.

QUALITY & STANDARD : The following BIS Standards may be referred – IS:11514:1985 – Piezo electric ceramic cartridge for Impact type gas lighters.

IS: 11519-1985 – Piezo electric ceramic cartridge for squeeze type of gas lighter.

IS:11013-1984 – Piezo electric ceramic elements (impact type & squeeze type)

PRODUCTION CAPACITY : The production capacity of the unit at 75% capacity utilisation.

Quantity : 18000 Nos. Value : Rs.18,90,000/- MONTH & YEAR OF : December, 2013.



MSME - Development Institute,

Ministry of Micro, Small & Medium Enterprises, Government of India

107, Industrial Estate, Kalpi Road,


Tele. 2295070, 2295071 & 2295073 (EPBAX) Tele. No. 2295072 (SENET & TRC)

Tele/Fax No.: 0512- 2240143








The electronic gas lighter uses a piezo-electric crystal. This crystal has a property to generate voltage when it is mechanically deformed. It generates high voltage across a spark gap which when in proximity to a gas would ignite it.

Gas lighters are being used by cooking gas users. It is durable due to its performance and economical as compared to the mechanical and electrical lighters. It does not require battery for its operation. It is safer, economical, reliable and quick in action. It requires virtually no maintenance.


The demand of any type of gas lighter is directly related to the release of domestic gas connections by various gas companies in the country. However, users go in for various types of gas lighting devices i.e. matches, electrical or electronic gas lighter. The preference to use electronic gas lighters is quite high because of inherent advantages stated above. Even existing gas users have been increasingly switching over to electronic gas lighters. At present, there is no small scale unit engaged in the manufacture of electronic gas lighter in the State of Uttar Pradesh. The cost of gas lighter is very well within the reach of users and therefore demand is increasing day by day.



1. The basis for calculation of production capacity is on single shift basis, working of 25 days per month on 75 % efficiency. The required for achieving envisaged capacity utilization is assumed as one year.

2. BEP for the scheme has been calculated on full capacity utilization.

3. Rate of interest has been taken as 15% on an average. This, however, is likely to vary depending upon the financial outlay of the location of the project.

4. Labour wages have been taken on the basis of minimum applicable. There are likely to change depending upon the location of the project.

5. Margin money requirement differs from project or project and type of entrepreneurs such as women, SC/ST, physically handicapped etc. and the minimum margin money usual asked by the financial institutions and banks are 15%. Margin money up to 25% in some cases is also asked. The entrepreneurs may check the margin money requirement from financial institutions for the project.

6. Term of loan differs from one financial institution to another and in general minimum gestation period is normally 6 months and it could be 2 years. Maximum period for repayment of loan is 7 years including gestation period. The entrepreneurs from the concerned financial institutions may find the exact terms and conditions.

7. The cost of machinery and equipments as indicated in the scheme are approximate those ruling at the time of preparation of the scheme. The entrepreneur may check the exact price for specific make and model of the machine selected.

8. Non-refundable deposits, cost of preparation of project report etc. may be considered under preoperative expenses.

9. The provision made in other respects viz; raw materials, utilities, overheads etc. are drawn on the basis of standard variation and output. The cost indicated against each are approximate and based on local market condition and observations. The entrepreneur may find out the exact cost from the concerned sources.

10. The operative period of this project is estimated to be about 10 years considering technology obsolesce



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

Period in month

1. Preparation of project report : 1

2. Registration and other formalities : 1

3. Sanction of loan : 3

4. Plant & Machinery a) Placement of order b) Procurement

c) Power connection/electrification

d) Installation / Erection of machinery / Test Equipment : : : : 1 2 2 2

5. Procurement of raw material : 2

6. Recruitment of Technical personnel etc. : 2

7. Trial production : 11

8. Commercial production : 12


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 & machinery are required, the implementation of project may vary from 12 months to 15 months.




Process of Manufacture:

Sheet metal work & M.S. Tubing/Cases can be done by job work from outside. Moulded components are made on injection moulding machine. Assembly on Piezo electric ceramic cartridge alongwith sheet metal components/parts and moulded parts are carried out and fitted in M.S. tubing/cases. The complete assembled unit is tested for life cycle ignition before it is sent for packing and dispatched.

(ii) Quality Control and Standards

There is no standard BIS Specification for this product However, the following specifications may be referred for quality:

IS:11514 – 1985 Piezo electric ceramic cartridge for impact type gas lighter IS:11519 – 1985 Piezo electric ceramic cartridge for squeeze type of gas lighter IS:11013 – 1984 Piezo electgric ceramic elements (impact type & squeeze type)

It is envisaged that the gas lighter will be able to perform the following operations:

1. To generate voltage above 10 KV

2. Period of spark generation should not be less than 10 milli second 3. The gas lighters must be able to operate more than 30,000 times.

(iii) Production Capacity:

Item Quantity Value

Electronic Gas Lighters 18,000 Nos. Rs. 18,90,000/-

(iv) Motive Power:

3 Phase 5 KVA

(v) Pollution Control:

The Govt. accords utmost importance to control environment 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 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.

(vi) 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 & 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 conservation technologies, production aids and testing facilities.

ii) Efficient management of process/manufacturing machineries and systems, QC and testing equipment 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 motor5s, 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.



A) Fixed Capital:

(i) Land & Building:

Built up Area: 300 Sq. Ft. (Rented) per month 5,000/-

(ii) Machinery & Equipment:

S.No Description Qty. Rate Value

1. Bench Drilling Machine (1/2”) 1 5,000/- 5,000/-

2. Bench Grinder 1 5,000/- 5,000/-

3. Fly Press 1 5,000/- 5,000/-

4. Injection Moulding Machine 1 6,000/- 6,000/-

5. Test Bench with jigs fitted (motorized) 1 5,000/- 5,000/-

6. Spot Welding Machine 1 10,000/- 10,000/-

7. Cost of dies/mould/tools & fixtures etc. LS 15,000/-

a) Installation & Electrification @ 10% 4,000/-

b) Office furniture & equipments 20,000/-

c) Pre-operative expenses 5,000/-

Total: 80,000/-

B) Working Capital (Per Month): (i) Personnel:

Sl. No. Designation No. Salary Total (Rs.)

1. Manager 1 15,000/ 15,000/- 2. Technical Supervisor 1 10,000/- 10,000/- 3. Clerk-cum-Typist 1 8,000/- 8,000/- 4. Skilled Workers 2 8,000/- 16,000/- 5. Unskilled Workers 2 4,000/- 8,000/- Total: 57,000/- Perquisites 15% 8,300/- Total: 65,300/-

(ii) Raw Materials including Packaging Requirements:

1. Piezo electric ceramic cartridge 1500 Nos.

2. Copper contact 1500 Nos.

3. M. S. Tubing 1500 Nos.

4. Spring 1500 Nos.

5. Plastic powder/granules 10 Kg

6. M. S. Lighter body 1500 Nos.

7. Hardware 1500 Sets

8. Consumables & Packing 1500 Sets

The average cost of raw material per set works out to be Rs. 40/- pet set. Total cost of raw material per month for 1500 Nos. Gas Lighters : Rs. 60,000/-


(iii) Utilities (P.M.)

1. Electricity 2,000/-

2. Water 200/-

Total 2,200/-

(iv) Other contingent Expenses (P.M.):

1 Advertisement 1,000/-

2 Consumable Stores 500/-

3 Insurance 500/-

4 Postage & Stationery 500/-

5 Rent 5,000/-

6 Repair & Maintenance 1,000/-

7 Transport 1,000/-

8 Misc. expenses 500/-

Total: 10,000/-

Total Working Capital per month

Sl. No. Description Amount (Rs.) 1. Personnel 65,300/- 2. Raw material 60,000/- 3. Utilities 2,200/-

4. Other contingent expenses 10,000/-

Total: 1,37,500/-

Working Capital for 3 months – 1,37,500 X 3 = 4,12,500/- TOTAL CAPITAL INVESTMENT:

1. Fixed Capital 80,000/-

2. Working Capital for 3 months 4,12,500/-



i) Cost of Production (Per Annum))

Sl. No.

Particulars Value(Rs.)

1. Recurring Expenditure 16,50,000/-

2. Depreciation on machinery and equipment @10% p.a. 3,600/-

3. Depreciation on Office Furniture @ 20% p.a. 7,800/-

4. Interest on Total Capital Investment @ 15% 73,875/-

Total: - 17,35,275/-

ii) Turnover (Per Annum)

Sl. No.

Item Value (Rs.)

1. By sale of 18000 Electronic Gas Lighter @ Rs.105/- 18,90,000/-

iii) NET PROFIT (Per Month)

Turn Over (-) Cost of Production

= 1,54,725/-

18,90,000/- (-) 17,35,275/-


Profit/month X 100 1,54,725/- X 100

= 8.18%

Turnover/month 18,90,000

v) RATE OF RETURN (Per Annum):

Net Profit/12X 100 1,54,725/- X 12 X 100

= 31.4%



Fixed Cost (Per Month):

1. Depreciation Rs. 11,400/-

2. Rent Rs. 60,000/-

3. Insurance Rs. 6,000/-

4. Interest on Investment @ 15% Rs. 73,875/-

5. 40% of Salary & Wages Rs. 2,83,200/-

6. 40% of other expenditure excluding Insurance and Rent of

utilities and other exp.

Rs. 36,000/-

7. 25% of utilities Rs. 6,600/-

Total:- Rs. 4,77,075/-


Annual Fixed Cost X 100 4,77,075X12X100

= 75%

Annual Fixed Cost + Profit 4,77,075 + 1,54,725

Additional Information:

a) The project profile may be modified / tailored to suit the individual entrepreneurship qualities/capacity, production programme a d 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 development 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 of margin money may vary as per bank’s discretion.


Names & Address of Machinery & Equipment Suppliers:

1. M/s Pathak Machine Tools Pvt. Ltd.,

115, & 116, G. T. Road, Salkia, Howrah-711106.

2. M/s Hindustan Machine Tools Ltd.,

Lamp Division, HMT, P.O. Hyderabad-500054.

3. M/s Machine Tools Impex,

75. G.C. Avenue, Kolkata-13.

4. M/s Maneklal & Sons,

23. G.C. Avenue, Kolkata-13.

B-10, Phase-II, Mayapuri Indl. Area, New Delhi-64.

5. M/s Shankar Coils Pvt. Ltd.,

30, Benttttinck St., 1st Floor, Kolkata.

Raw Material Suppliers:

1. M/s Calico Chemical & Plastic Fibre Dvision, - Plastic Materials

Anik Chambers, Mumbai-74.

2. M/s Central Electronics Ltd.,

Industrial Area, Sahibabad, Disttt. Ghaziabad. – Piezo Ceramic

3. M/s Brisk Electro Sales (P) Ltd.,

Lamington Road, Lamington Chamber, Mumbai. – Piezo Ceramic

4. M/s Neeraj Trading Company,

3, Chandni Approach, KOlkata-72. – Piezo Ceramic





Related subjects : Electronic Shop Project Report