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Product Code : 366203010

Quality Standards : As per BIS Specification

Product Capacity :
(Per Annum)

Quantity : 24,000 Nos,

Value : Rs. 48,00,000/-

Month & Year of : January 2007


Prepared By :

Shri. Sunil Kumar Newar

Assistant Director, Electronics

Branch, Small Industries Service Institute

Ministry of Small Scale Industries
Hawakhana Road, Tura, West Garo Hill
Tura-794001 (Meghalaya)

Energy Saver Electronic Choke


A choke is one of the vital components of a fluorescent lamp. It creates a high voltage storage
across the lamp electrodes during starting to initiate discharge through the low pressure gaseous
medium between the electrodes. It also limits the current, during normal operation after the discharge
has been established. In the beginning conventional coil wound choke were in use but with the
change in technology this have been started replacing with electronic chokes. These chokes save
about 35 to 40% of energy as compared to conventional chokes giving better luminescence.
Beside this they ensure instant flicker free starting and high resistance to switching transient. They
can even glow at lower voltage compared to conventional coil wound choke.


The market for electronic choke is increasing day by day and in future it seems it would
completely replace the conventional coil wound choke because of its features like tremendous
energy saving, instant flicker free starting and finally can glow at low voltage.

Basis and Presumption

1. The production capacity is calculated on single shift of 8hrs at 70% efficiency for 300
working days in a year.

2. Interest in this project profile has been calculated at the rate of 14% per annum on total
capital investment. However, this figure is likely to vary depending on the financial outlay
of the project as well as location of the unit.

3. The break even point percentage indicated is of full capacity utilization.

4. The cost of machinery and equipment as indicated refer to a particular make and prices
are approximate those prevailing at the time of preparation of project profile. Similarly the
rent of land and building indicated in the profile relates to a particular place and should be
updated depending upon place of implementation.

5. The salaries and wages, cost of raw- materials, utilities, cost of land and rents are based
on the prevailing rates in and around Meghalaya at the time of preparation of project
profile. These cost factors are likely to vary with time and with location.

6. Pay back period 5 years from second year of operation.

7. Units may also utilize common test facilities available at Electronics Regional Test
Laboratories (ERTLs) and Electronics Test and Development Centres (ETDCs) set up
by the state Govt. & STQC Dte. of the department of Electronics to manufacture products
conforming to BIS standards.

Implementation Schedule

The following activities are involved in the implementation of the projects.

1. Preparation of project report One Month

2. Registration with DIC / Directorate of Industries One Month
3. Approach to financial institutions for getting finance Three Months
4. Plant & Machinery
a) Placement of orders One Month
b) Procurement of machinery Two Months
c) Installation of machinery & Test Equipment Two Months
5. Procurement of raw material One month
6. Recruitment of Staff One Month

Keeping in view the overlaps of some of the activities the total time required may be 10 to
12 months for implementation of the project. When imported machinery are required the
implementation period of project may vary from 12 months to 15 months.

Technical Aspects

1. Process outline

The whole manufacturing process can be categorized into the following steps

(a) PCB assembly

(b) Unit wiring and mounting in the cabinet.

(c) Testing for its performance.

(d) Quality control

(e) Finishing and packaging.

All the tested electronic components are mounted on the PCB as per the layout diagram/
B.O.M and then soldered. A visual check is carried to ensure that the orientation and position of
the component is as per the layout diagram and there are no dry solders. The soldered side of the
PCB is then cleaned using solvents to remove solder flux.

In next step the assembled unit is suitably neatly wired to avoid any loose connection and
then mounted in the cabinet.
Functional checks are performed to ensure that the basic functions of choke are working
The choke is again tested for the quality and the units having the required quality are
ultimately sealed, packed and dispatched.

2. Quality Specifications

As per B.I.S. specification

3. Production Capacity per annum

Quantity : 24,000 Nos.

Value : Rs.48,00000

4. Motive Power Requirements 5KVA

5. Pollution Control Requirements

The Government and almost all standards lay emphasis on control of environmental pollution.
The small scale entrepreneurs should have an environmental friendly attitude and adopt pollution
abatement measures by process modification and technology substitution.
The following steps may help to control pollution in electronics industry wherever applicable:
a) In electronics industry fumes and gases are released during the soldering process
which are harmful to people as well as environment and the end products. Alternate
technologies may be used to phase out the existing pollution technologies. Numerous
new fluxes have been developed containing 2 -10% solids as opposed to the traditional
15 - 35% solids.
b) Make use of solvents such as Trichloroethylene, Isoprophyl alcohol for cleaning of
printed circuit board after soldering to remove flux residues.
c) Most of the electronics industry is excluded from pollution control. The
acknowledgement by the State Pollution Control Board would serve the purpose of

6. Energy Conservation
The following steps may help for conservation of electrical energy:
a) Adoption of energy conservation technologies, production aids and testing facilities.

b) Efficient management of process / manufacturing machineries and systems, QC and
testing equipments for yielding maximum energy conservation.
c) Optimum use of electrical energy for heating during soldering purpose can be obtained
by using efficient temperature controlled soldering and desoldering stations.

d) Periodical maintenance of motors, compressors & other power driven equipment.

e) Maintain the standard value of power factor using the capacitor bank to compensate
the inductive losses which in turn would increase the system efficiency.

f) Proper selection and layout of lighting system, timely switching on-off of the lights,
make use of CFL wherever possible.

Financial Aspects

I. Fixed Capital

Built up Area - 200 Sq. Metres Rent - Rs. 7000

Office Stores etc. - 50 Sq. Metres.
Working Shed - 150 Sq. Metres

II. Machinerv & Equipment

Sl.No. Description Qty. Unit Price Total Price (Rs.)

1. Oscilloscope 1 22,000 22,000

2. Digital Multimeter 3 3,000 9,000

3. Insulation Tester 1 6000 6,000

4. Coil winding machine 1 6000 6,000

5. LCR & Q Meter 1 23000 23,000

6. Analog Dial AVO 1 5000 5,000

Amps- Volts- Ohms meter

7. Wattmeter 1 3000 3,000

8. Rheostat 2 3000 6,000

9. Small drilling machine 1 2500 2500

Total 82,500

(B) Electrification and Installation charges 8250

at the rate 10% of Machinery & Equipment

(C) Cost of Tools / Soldering irons / desoldering pumps/ 7000

Jigs / Fixtures etc.

(D) Cost of Office Equipment / Working Table etc. 25,000

(E) Pre- Operative Expenses 10.000

Total 1,32,750

III. Working Capital (Per Month)

S.No. Personnel Designation No. Salary Total Salary ( Rs.)
1. Manager (Tech.) 1 6,000 6,000
2. Sales Assistant / 2 5,000 10,000
Marketing Officer
3. Supervisor 1 4,500 4,500
4. Accountant 1 4,000 4,000
5. Skilled workers @ 3 3000 9,000
Rs. 3000 per month
6. Unskilled Worker @ 2 2200 4,400
Rs. 2200 per month
7. Peon 1 2000 2000
Total 39,900
Perquisites @ 10% 3990
Total 43,890

(B) Raw Material Per Month (25 Working Days)

Sl.No. Description Ind/lmp Cost/unit ( Rs.)

1 Diodes (IN4007, IN4148 etc.) Ind 30
2 High Voltage Switching Power Transistor Ind 28
3 Resistors Ind 4
4 Capacitors (Different types) Ind 22
5 Printed Circuit Board (PCB) Ind 10
6 Ferrite Cores Ind 19
7 Copper winding wires Ind 10
8 Enclosure, Screws, connector, Flexible wire etc. Ind 15
Total 138

Total Value of raw material required/month

2000x138 = 276000
(C) Utilities Per Month

Sl. No. Description Amount in Rs.

1. Power 4,400

2. Water 300

Total 4,700

(D) Other Contigent Expenses

Sl.No. Description Amount in Rs.

1. Rent 7000

2. Postage & stationary 800

3. Consumable Stores 4000

4. Repairs / Maintanence 500

5. Transport Charges 5,000

6. Advt. & Publicity 500

7. Insurance 800

8. Misc. 1000

Total 19,600

(E) Total Recurring Expenditure / Month 344,190

(Sum of A+B+C+D)

(F) Total Working Capital (3 month basis) 1032570

IV. Total Capital Investment

1. Fixed Capital 132,750

2. Working Capital 1,032,570

Total 1,165,320

Financial Analysis

I. Total Cost of Production Per year

1. Total recurring expenditure / annum 4130280

2. Depreciation@ 10% of Machinerv & Equipment 8250

3. Depreciation @ 10% of Tools / User Trays 700

4. Depreciation of Office Equipment @ 10% 2500

5. Interest on Investment @ 14% 163144.8

Total 4304874.8

II. Turn Over

Sl.No. Description Qty Unit Price Total S.Price (Rs.)

1 By Sale of 24,000 Nos. Electronic 24000 200 4800000

chokes at the rate of Rs.200/- each

III. Parameters

1. Net Profit per Annum (Before Tax) in Rs. 495125.2

2. Net Profit Sales Ratio 10.31%

3. Rate of Return 42.48%

4. Break Even Point 52.98%

Total Fixed Cost per Year

(a) Depreciation (Total) 11450

(b) Rent 84000
(c) Interest 163144.8
(d) Insurance 9600
(e) 40% of Salary & Wages 210672
(f) 40% of contingent Expenses (Excluding certain things) 79,200
Fixed Cost per Year = 558066.8

BEP = (FC X 100) / (FC + NET PROFIT)

Addresses for Raw Materials

1 M/s Entronix Inc.,

119, Munish Plaza,
4637/20 Ansari Road,
Daryaganj, New Delhi -110002.

2 M/s Micro Devices,

306 -307, Bhandari House,
91, Nehru Place, New Delhi -110019.

Addresses for Instruments

1 M/s Agmatel India,

E-366, IInd Floor, Nirman Vihar,
Vikas Marg, Delhi - 110092.

2 M/s Scientific Mes-Technik Pvt. Ltd.,

B-14, Pologround,
Industrial Estate, Indore – 452015

3 M/s Avante Global Services.

329, Ground Floor, Sant Nagar,
East of Kailash, New Delhi-1100065.

Address for Bare PCB manufacturer

1 M/s Precision Electronics Ltd.,

D-10. Sector- 3, Noida -201301
Uttar Pradesh.

Address for Soldering & Desoldering station

1 M/s Advance Tech Services,

56, Second floor,
Rani Jhansi Road, New Delhi - 110055.

Address for Solder fluxes and other allied products

1 M/s Khanna Traders & Engineers,

CB-105, Ring Road, Naraina,
New Delhl-110028.