ELECTRICAL SWITCH GEAR

SUMMARY REPORT CONTENTS

1.

PROJECT OVERVIEW ........................................................................................................ 1

2.

PRODUCT OVERVIEW ...................................................................................................... 1

3.

BASIC ASSUMPTIONS ...................................................................................................... 2

a.

Building ......................................................................................................................... 2

b.

Cost of Plant & Machinery:......................................................................................... 2

c.

Raw Materials required ............................................................................................... 2

d. Utility Requirements ................................................................................................... 2

e.

Manpower Requirement ............................................................................................. 2

f.

Lease Rental for land ................................................................................................... 2

4.

FINANCIAL SUMMARY .................................................................................................... 3

a.

Cost of Project ............................................................................................................... 3

b.

Cost Ratios .................................................................................................................... 3

c.

Key Profitability Ratios (without considering taxes) .............................................. 4

d. Key Appraisal Criteria (without considering taxes) ............................................... 4

LEVEL 2

1.

Project Summary

PROJECT OVERVIEW
Name of product

Electrical Switchgear

ISIC code

312001

ISIC description

Manufacture of electricity apparatus for switching or

protecting electrical circuits or for making
connections to or in electrical circuits (e.g. switches,
fuses, lightning arresters, voltage limits, junction
bores etc).

End use sector

Construction

Capacity

Total

1,000 Nos.

Details of Products

2.

Feeder Pillars-1600A

- 100 nos.

Feeder Pillar 800A

- 150 nos.

Feeder Pillars-400 A

- 200 nos.

Distribution Boards

200 nos.

P F Correction Banks

100 nos.

Form 4 Panels

- 150 nos.

Form 2 Panels

- 100 nos.

Capital cost

USD 1,442,000

Total project cost

USD 2,587,000

Type of report

Project summary

PRODUCT OVERVIEW
1.

Product application

Switchgear is used both to de-energize equipment to

allow work to be done and to clear faults
downstream

2.

Product range

Feeder Pillars 1600 A, 800 A & 400A,

Distribution Boards, P F Correction Banks, Form
4 Panels, Form 2 Panels.

LEVEL 2

3.

Project Summary

BASIC ASSUMPTIONS
a. Building
The total extent of building is about 1,000 sq. Meters. The estimated cost of
buildings is USD 558,000
b. Cost of Plant & Machinery:
The estimated cost of plant and machinery for the production of
estimated capacity is about USD 211,000.
c. Raw Materials required
Sheet metal enclosures, MCCBs, MCBs, contactors, overload relays, busbars,
isolators, and ELCBs are the raw materials used for manufacturing electrical
switch gear. The estimated cost of raw materials for the estimated

production is USD 2.765 million.

d. Utility Requirements
The utilities required include water and electricity. The total utility
requirement at full capacity production is estimated at USD 11,758.
e. Manpower Requirement
The total manpower requirement is 34 persons. The estimated cost
manpower cost per annum is USD 530,712.
f. Lease Rental for land
The total land area required is about 10,000 Sq. Meters. Rental rate has
been considered at USD 0.65 per sq. meter per annum.

LEVEL 2

4.

Project Summary

FINANCIAL SUMMARY
a. Cost of Project
Amount

Details

(USD)

Cost of land development

139,000

Building & civil works

558,000

Plant & machinery

211,000

Vehicles and internal transport

159,000

Furniture & Office Equipment

60,000

Pre- Operative Expenses

253,000

Contingency & Escalation

62,000

Subtotal of Capital Investment

1,442,000

Working Capital

1,145,000

TOTAL

2,587,000

b. Cost Ratios
The major cost indicators as a percentage of sales realization are given below.
Years of Operation
Raw Material / Total Sales

Year 1

Year 2

Year 3

Year 4

Year 5

61.5%

61.5%

61.5%

61.5%

61.5%

0.3%

0.3%

0.3%

0.3%

0.3%

Factory wages / Total Sales

12.4%

10.9%

9.8%

8.9%

9.1%

Prime Cost / Total Sales

75.4%

73.9%

72.8%

71.9%

72.2%

Factory exp. / Total Sales

2.6%

2.8%

3.2%

3.1%

3.1%

Factory Cost / Total Sales

78.1%

76.8%

76.0%

75.0%

75.2%

Admin. exp. / Total Sales

5.6%

4.9%

4.4%

3.9%

4.0%

Utilities / Total Sales

LEVEL 2

Project Summary

Years of Operation

Year 1

Year 2

Year 3

Year 4

Year 5

Selling exp. / Total Sales

6.9%

6.5%

6.2%

5.9%

6.0%

Finance Cost / Total Sales

5.5%

4.7%

4.0%

3.3%

3.0%

13.3%

3.4%

3.0%

2.6%

2.6%

109.4%

96.3%

93.6%

90.8%

90.9%

Non-Cash exp. /Total Sales

Total Cost / Sales

c. Key Profitability Ratios (without considering taxes)

Year

Year
1

Year
2

Year
3

Year
4

Year
5

Year
6

Year
7

Year
8

Year
9

Year
10

Profit on
Investment

-9.8%

4.6%

8.9%

14.4%

14.2%

14.1%

14.0%

13.8%

13.6%

13.6%

Profit on
Equity

29.5%

13.7%

26.8%

43.1%

42.8%

42.4%

41.9%

41.5%

40.9%

40.7%

d. Key Appraisal Criteria (without considering taxes)

USD 2,587,000

Total cost of project

IRR on total investment

12.6%

IRR on equity investment

21.9%

Payback period of total investment

6 yrs 4 months

Payback period of total equity

5 yrs 1 month

Break-even point

73%

Cash break-even point

66%

Disclaimer: All figures in this profile are pure estimations that can vary in different situations. The
techno-commercial information in these pages may be applicable only in certain situations and
countries. User may employ his discretion whether to use these data/information for their businesses.
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way, responsible for any consequence, including but not limited to material or financial loss.