CELL PHONE SERVICING & REPAIRING

INTRODUCTION
With the advancement in the IT sector, there are introduction of a number of gadgets in the
market which have made electronic communication easier. Mobile or Cell phone is one such
device which has made our world smaller in terms of communication. It is no longer a luxury but
a necessity for businessmen, students and people of all profession to communicate with each
other.
MARKET POTENTIAL
These electronic gadgets are vulnerable and tend to go out of order if handled roughly, with
nearly every person possessing a mobile set, the market potential for repairing and servicing unit
is bright. Moreover, most of the younger generation is interested in down loading of music in their
mobile as ring tones etc.
PLANT CAPACITY
Annual Production:
Mobile Repairing

Minor
Major
Selling Mobile Covers and casings
Selling of Mobile Set
Song Downloading
Working Days/year

3000 Sets
1500 Sets
4200 Nos.
600 Nos.
15000 Nos.
300 Days

RAW MATERIALS (Per month)

Items
Diode transistor and resistant
Shouldering paste
Extra Circuit
Manuals
Mobile covers (plastic)
Mobile Covers (leather)
Mobile casing
Mobile

Quantity

Total Amount
(Rs.)
300/100/2,000/3,000/2,500/-

L.S.
3 Pkts
2 Sets
2 Sets
250 Nos. @
Rs.10/50 Nos.
@ Rs.50/50 Nos.
@ Rs.75/50 Sets
@Rs2000/Total:
Total annual requirement

2,500/3,750/1,00,000/1,14,150/13,69,800/-

MACHINERY
The major equipment required are :
Sl. Particulars
No.
1.
Computer with accessories
2.
Software
3.
Digital eciliscope
4.
SMD circuit maker
5.
Data Code Kit
6.
Shouldering Iron
7.
Digital Multimeter
8.
Tool Kit
9.
Misc. tools
Total:

Qty.
1
2 Set
2 Nos.
2 Nos.
2 Nos.
4 Nos.
2 Nos.
2 Nos.
L.S.

319

Rate
(Rs.)
30,000/20,000/@ 8,000/@ 7,000/@ 5000/@ 300/@ 1500/@ 1000/-

Amount
(Rs.)
30,000/20,000/16,000/14,000/10,000/12,000/3,000/2,000/2,000/1,09,000/-

INFRASTRUCTURE
The major infrastructural requirement is:
Covered Area

200 Sq.ft.
Power

1 KW
LOCATION
The suggested locations are:
Assam
:
Meghalaya
: All district headquarter
Nagaland
: and urban & semi-urban
Tripura
: areas.
Manipur
:
Arunachal Pradesh
:
TOTAL CAPITAL REQUAIREMENT
The total capital requirement including fixed capital and working capital is estimated at
Rs.2,95,880/- as follows. Of this, the project cost comprising fixed capital and margin money on
working capital is Rs2,13,408/-.
( Rs. )
A.
Fixed Capital:
Land and Building
On rent
Plant and Machinery
1,09,000/Miscellaneous fixed assets
50,000/Preliminary and pre-operative expenses
10,000/________
Total (A) :
1,69,000/========
B.
Working Capital:
Raw materials & packing materials
month
8,490/Working expenses
1 month
11,890/Receivables
15 Days 1,06,500/________
Total (B 1,26,880/========
Total (A) + (B) 2,95,880/========
Note: Working capital may be financed as:
Bank Finance

Rs.82,472/Margin Money

Rs.44,408/___________
Rs. 1,26,880/===========
MEANS OF FINANCE
Promoters Contribution (35%)

Rs. 76,493/Term Loan (65%)

..
Rs.1,36,915/___________
Rs.2,13,408/==========
OPERATING EXPENSES
The annual operating expenses are estimated at Rs.16,58,207/- as given below:
(Rs.)
1.
Raw materials
13,69,800/2.
Utilities
7,680/3.
Wages & Salaries
96,000/4.
Rent
24,000/5.
Other overheads
12,000/6.
Selling expenses @ 5% on annual sales
1,06,500/7.
Interest on term loan
16,430/8.
Interest on bank finance for working capital
9,897/9.
Depreciation
15,900/__________
Total: 16,58,207/==========

320

SALES REALISATION
Sl.
No.
1.
2.
3.
4.
5.
6.
7.

Particulars
Minor Repair of Mobile
Major Repairing
Selling of Mobile covers
(Plastic)
Selling of Mobile (leather)
covers
Mobile casing
Downloading songs
Mobile Sets

Qty.
250 Nos.
125 Nos.
250 Nos.
50 Nos.
50 Nos.
1250 songs
50 Nos

Total annual sales realization

Rate
(Rs.)
@ 50/@ 200/@ 20/-

Amount
(Rs.)
12,500/25,000/5,000/-

@ 75/-

3,750/-

@ 100/@ Re.1/@ 2500/Total:

5,000/1,250/1,25,000/1,77,500/21,30,000/-

PROFITABILITY
Based on the sales realization of Rs.2,95,880/- and the operating expenses of Rs.16,58,207/-,
the profit at rated capacity utilization would be Rs. 4,71,793/- per year. The unit will break even
at about 27% of the targeted annual production.
HIGHLIGHTS
The major highlights of the project are as follows:
Total Capital Requirement
Promoters contribution
Annual Sales realization
Annual operating expenses
Annual profit (pre-tax)
Pre-tax return on sales
Break-Even Point
No. of persons employed

321

Rs. 2,95,880/Rs. 76,493/Rs. 21,30,000/Rs. 16,58,207/Rs. 4,71,793/22.15%

27%
4