AUTOMOBILE GASKETS

A.

INTRODUCTION

The function of a gasket is to seal the two faces of components to avoid leakage of fluid
and air

in the system in automobiles and other pneumatic and hydraulic systems

gaskets are used. Metallic and non metallic gaskets are used .There is large demanded
for the Automobile gaskets for replacement and O.E markets.

B.

PRODUCT USES AND SPECIFICATIONS

Bureau of Indian standards has not prescribed standards for the automobile gaskets.
The main types of gaskets which are manufactured are as follows.
Cylinder head gaskets
Head Gasket
Full Set Gasket
Timing Kit Gasket
Rocker Cover Gasket
Rocker Cover Kit Gasket
Oil Seal Gasket
Ex-manifold Gaskets
Exhaust pipe Gaskets
Inlet Gasket
Oil Pan Gasket
Oil Pan Set Gasket
Flange Gasket
Chamber gasket
Spenting Roll Gasket
Water Pump gasket
CV Joints Boots
Head Set
Conversion Set
Inlet- manifold

C.

MARKET POTENTIAL

There are two types of demand for

Automobile Gaskets 1. O. E. Demand and 2.

Replacement demand. The O. E Demand will increase with the production of original
vehicles. The replacement demand is dependent on the wear and tear and replacement
of the vehicle owners as this is a critical equipment and replacement is essential to run
the vehicle, the replacement demand is bound to increase. With the setting up major
automobile projects namely Ford Motors, Hyundai Motors, Hindustan Motors,
Mitsuibishi and with expansion plans of Ashok Leyland & TAFE, Chennai emerges the
Detroit of south East Asia. TamilNadu has always been a fore-runner in the industrial
process, both in terms of industrial output and also terms of encouraging various new
large-scale projects. Having recorded an impressive is growth industry in the postreform span, it is poised for further industrial development and expansion. At present
the state accounts for over 11-12% of Indias industrial output. Automobile ancillaries
have O.E. Market and Replacement market for all automobile

D.

TECHNICAL ASPECTS

1.

Installed Capacity

The proposed installed capacity of the unit is 4800 Kgs of Automobile Gaskets per
annum .This is based on a capacity of 160 Kgs per day of single shift operation,8 hours
per day, 300 days in a year.
2.

Plant and Machinery

The following machineries are required for production.

Machine name
Power Press 10 Mt capacity
Bench grinder
Fly Press No 6.
Hand shearing machine
Portable Drilling machine
Dies and fixtures
Hand tools and Measuring Instruments

Quantity Nos
1
1
1
1
1
1
Total

Value Rs lakhs
0.40
0.05
0.06
0.03
0.05
0.30
0.11
1.00

3.

Manufacturing Process
Purchase of Gasket Sheets (Cork sheets, Asbestos sheets, Rubber sheets, etc)
I
Cutting in shearing machine
I
Gasket Punching in Power Press with use of dies and punches
I
Drilling holes and grinding
I
Finishing
I
Packing

4.

Raw Material

The raw materials required for the production of Automobile gaskets are Gasket
Sheets of various thicknesses. This material can be procured from any reputed dealers
of steel.
5.

Land & Building

A rented place with 600 sqft. area is required.

Rs.3,000 and also an advance of Rs.30 000.
6.
Utilities
Power:
The total power requirement of the unit will be 20 HP
Water:
Water is required only for human consumption.
Man power:
Category

Nos

Monthly Total
salary Salary
Operators
2
3000
6000
Unskilled
1
2000
2000
Assistants
1
3000
3000
Security
1
2000
2000
Total
13000
Add 20%benefits
2600
Total
15600
Annually
-> Rs 1.87 lakhs

The monthly rent is estimated at

7.

Implementation Schedule

If financing arrangement is made available the project can be implemented with in three
months period.
8.
ASSUMPTIONS
Installed Capacity per annum
Capacity utilization - Year 1
- Year 2
- Year 3
Selling price per piece

Automobile Gaskets 4080 Kgs p.a.

60%
70%
80%
Automobile Gaskets Rs.250 /Kg

Raw Material required per Kg

Gasket sheets of various thicknesses
4900 Kgs @ Rs 75.00 per kg

Value (Rs.)
3.68

Consumables cost p.a. at 100% (Rs.lakhs)

Power & Fuel at 100% (Rs.lakhs)
Wages & Salaries (Rs.lakhs)
Repairs & Maintenance per month
Depreciation
Administrative & General expenses p.m.
Selling expenses
Interest on Term loan and Working capital
finance

Rs.0.24 lakh
Rs.1.61 lakh p.a
Rs.1.87 lakhs
Rs.2,000 p.m
Written Down Value method
Rs.5,000
3%
14%

LIST OF MACHINERY SUPPLIERS

1.

Orient Machine Tools

New 269(old no 130) Linghi Chetty Street
Chennai-600 001

2.

Quality Machine Tools

New 238 Linghi Chetty Strret
Chennai 600 001

3.

Gujrat Machine Tools

New 279, Linghi Chetty Street
Chennai 600 001

4.

Premier Machine Tools

New 103 Armenian Street
Chennai 600 001

5.

Machine Centre
New 214 linghi chetty Street
Chennai 600 001

LIST OF RAW MATERIAL SUPPLIERS

1.

Brook Inc
576, Mount road
Chennai- 600018

2.

National Core Products India

New 320, T.T.K.Road
Chennai-600 018

3.

Anchor Cork Pvt Ltd

LOBO Compound
M.V. Road
Sakinaka
Mumbai-400 072

4.

Rubber Sales Corporation

22 Mooker Nallamuthu Street
Chennai-600 001

5.

Rusko International Products

22, Mooker nallamthu Street
Chennai-600 001

1. COST OF PROJECT
[Rs.lakhs]
Land & Building (Advance)
Plant & Machinery
Other Misc. assets
Pre-Operative expenses
Margin for WC

0.30
1.00
0.20
0.20
0.60
2.30

2. MEANS OF FINANCE
Capital
Term Loan

1.55
0.75
2.30

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS

[Rs.lakhs]
Years
1
2
3
Installed Capacity (Kgs.)
Utilisation
Production/Sales (Kgs.)

4800
60%
2880

4800
70%
3360

4800
80%
3840

Selling Price/kg (in Rupee)

250 per Kg.

Sales Value

7.20

8.40

9.60

Raw Materials
Consumables
Power
Wages & Salaries
Repairs & Maintenance
Depreciation
Cost of Production

2.21
0.14
0.97
1.87
0.24
0.35
5.78

2.58
0.17
1.13
1.96
0.25
0.26
6.35

2.94
0.19
1.29
2.06
0.26
0.10
6.84

Admin, & General expenses

Selling expenses
Interest on Term Loan
Interest on Working Capital
Total

0.60
0.36
0.11
0.07
6.92

0.63
0.42
0.09
0.07
7.56

0.66
0.48
0.07
0.07
8.12

Profit Before Tax

Provision for tax
Profit After Tax

0.28
0.10
0.18

0.84
0.30
0.54

1.48
0.53
0.95

Add: Depreciation
Cash Accruals

0.35
0.53

0.26
0.80

0.10
1.05

4. WORKING CAPITAL:
Months
Consumption

Values

0.75
1.00
0.25
0.50
1.00

0.14
0.01
0.12
0.30
0.50
1.07

Raw Materials
Consumables
Finished goods
Debtors
Expenses

25%
25%
25%
10%
100%

[Rs.lakhs]
Margin
Bank
Amount Finance
0.04
0.00
0.03
0.03
0.50
0.60

0.10
0.01
0.09
0.27
0.00
0.47

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax
Sales

0.95
9.60

10%

Profit before Interest and Tax

Total Investment

1.62
2.77

58%

Profit after Tax

Promoters'Capital

0.95
1.55

61%

6. BREAK EVEN LEVEL

Fixed Cost (FC):
[Rs.lakhs]
2.06
0.26
0.10
0.66
0.07
3.15

Wages & Salaries

Repairs & Maintenance
Depreciation
Admin. & General expenses
Interest on TL

Profit Before Tax (P)

BEL =

1.48

FC x 100
FC +P

3.15
4.63

80
100

x 100

54% of installed capacity