This document provides details on establishing a steel fabrication shop as an entrepreneurial project. It includes an introduction to entrepreneurship and challenges entrepreneurs may face. It then discusses establishing a steel fabrication shop, including the proposed products of steel gates, grills, rolling shutters and tanks. It outlines the market potential for these products and provides a breakdown of the capital requirements, recurring expenses, working capital needs and a tentative monthly profit and loss statement. The project aims to establish a sustainable steel fabrication business.

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FABRICATION SHOP2016
AN ENTREPRENEURSHIP
Project report on
“FABRICATION SHOP”
A stepaheadtowards thenation
Submitted by
ROHIT KUMAR
Department of mechanical Engineering
GANDHI INSTITUTE FOR TECHNOLOGY, BBSR

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FABRICATION SHOP2016
CERTIFICATE
This is to certify that the project report on “FABRICATION SHOP” is a confide
record of the project delivered by GAURAV KUMAR SINGH, JAGANNATH SAHU,
GOBIND GOPAL DAS, JYOTI RANJAN BAG under my supervision and guidance, in
partial fulfillment of the requirements for the award of Degree of Bachelor of Technology
in Mechanical Engineering from GANDHI INSTITUTE FOR TECHNOLOGY,
Bhubaneswar for the year 2012-2016.
HOD Project Coordinator Project Guide
Department Of Mechanical

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FABRICATION SHOP2016
ACKNOWLEDGEMENTS
The work presented in this dissertation would not have been possible without the help and
support of a large number of people. The author first expresses his heartiest gratitude to
his guide and supervisor Prof. ARVIND TRIPATHY, Designation , HOD of Mechanical
Engineering, Gandhi institute for technology, Bhubaneswar, Orissa, India for his valuable
guidance, help and encouragement in the course of the present work. The successful and
timely completion of the work is due to his constant inspiration and constructive criticism.
I take this opportunity to express my deepest gratitude to KEDAR NATH HOTA, Co-
Ordinator Head, and faculty members of the Department of Mechanical Engineering,
GIFT, Bhubaneswar for constant advice, useful discussions, encouragement and support
in pursuing the B. Tech work.
The help and cooperation received from the Principal and Dean Academic,
GIFT, Bhubaneswar are gratefully acknowledged.
GAURAV KUMAR SINGH (1201298388)
JAGANNATH SAHU (1201298482)
GOBIND GOPALDAS (1201298456)
JYOTIRANJAN BAG (1201298333)

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FABRICATION SHOP2016
CONTENTS
1. ABSTRACT 1
2. INTRODUCTION TO ENTERPENEURSHIP 2
3. ENTREPRENEURIAL PHILOSOPHY 3
4. CHARACTERISTICS OF ENTREPRENEUR 4
5. CHALLENGES FOR ENTR. PROJECT 4-5
6. ROLE OF FIS BANKS IN SSI FINANCING 7
7. STEEL FABRICATION SHOP INTRODUCTION 8
8. ABOUT THE PRODUCT AND MARKET POTENTIAL 9
9. SCHEME FOR MANUFACTURE OF STEEL
FABRICATION AND RECONDITIONING JOB 9-16
10. REFERENCES 17

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FABRICATION SHOP2016
ABSTRACT ON FABRICATION SHOP
Beginning with the Industrial Revolution era, a fabrication shop may be
a room or building which provides both the area and tools (or machinery) that may
be required for the manufacture or repair of manufactured goods. Fabrication
shops were the only places of production until the advent of industrialization and
the development of larger factories. In the 20th and 21st century, many Western
homes contain a fabrication shop in the garage, basement, or an external shed.
Home fabrication shops typically contain a workbench, hand tools, power tools
and other hardware.

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FABRICATION SHOP2016
2. INTRODUCTION OF ENTREPRENURSHIP
The word ‘entrepreneur’ has its origin in the French language. It refers to the
ORGANISER OF MUSICAL or OTHER ENTERTAINMENTS. ENTREPRENURSHIP can
be described as a creative &innovative response to the environment. Such responses can
takes place in any field of social Endeavour-business, agriculture, education, social work
the like. An entrepreneur is one who organizes, manages & assumes the risks of an
enterprise. An entrepreneur visualizes a business, takes bold steps to establish under
taking, co-ordinates the various factors of production gives it a start. ENTREPRENEURS
are the owners of the business who contribute the capital & bear the risk of uncertainties in
business life. ENTREPRENEUR is action-orient & highly motivated person who has the
ability to evaluate business opportunities, to gather the necessary resources to take
advantage of them &to intimate appropriate action to ensure success. ENTREPRENEUR
takes decision regarding what to produce, where to produce& whom to produce.

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3. ENTREPRENEURIAL PHILOSOPHY
1. To take calculated risk.
2. Willingness to acceptresponsibility for one’s own work
3. Failure must be accepted as a learning experience
4. Goal oriented ness.
5. Acceptable results are more important than perfect results.
6. Personal growth. EXPECTATIONS OF ENTREPRENEURSHIP
It is expected from the entrepreneurs that they will help:-
1. Increase number of industries.
2. Increase production.
3. Increase employment opportunities.
4. Earn foreign exchange through exports.
5. Develop the underdeveloped parts of the country.
6. Economical development.

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4. CHARACTERSTICSOF ENTREPRRENUR:
SELF CONFIDENCE
TASK-RESULT ORIENTED
RISK-TAKER
LEADERSHIP
ORIGINALITY
FUTURE ORIENTED
5. CHALLENGES FOR ENTREPRENEURSHIP PROJECT:-
1. TechnologyUp gradation:-
It is found that our small scale sector is not able to compete because of outdated
technology. We must appreciate that small scale industry has to keep itself updated and
then only it can sell goods. In the post WTO era, the best thing would be available
anywhere in the world as there is no restriction for goods to move. People will purchase
only if the goods are of good quality.
We must remember that we may or may not need imported technology for up gradation.
Our small industries have the advantage of developing in import substitution period. Many
SSI can therefore become world class with only small modifications or improvement.
2. Testing facilities:-
Because our small scale industries are situated in far flung areas there for it is not possible
to service by one or two central laboratory. We suggest that educational institution even in
small towns should be equipped to provide testing facilities to small scale industries.

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3. Exports: -
We find that small scale industries engaged in exports do not have any benefits, although
they count for bulk export. We strongly advocate special concessions for small scale
industries, which are engaged in exports.
4. Involvement of Industrial Associations:-
We feel that many problems of small sector can be taken care of if industrial associations
are involved in a big way.
5.InfrastructureDevelopment:
Small scale industries suffer maximum from lack of infrastructure development. The
quality of power is bad and the power available is at very high cost. This must be
corrected. Roads are bad. Communication facilities are not up to mark etc.
6. Credit: -
The credit is still not available to small scale industries. The credit Guarantee Fund created
by SIDBI is not being exploited as there are still short coming in the scheme.
7. Skill Up gradation: -
Small scale Industries are known for providing on job training. But in the post WTO era
when cost cutting is order of the day, the people are running small scale industries must be
skilled and these skills must be up graded continuously so that they are in the job & no
unemployment results.

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8. Marketing:-
The present market assistance scheme is most welcome. More such schemes are required
.Small Scale Industries are being bundled out of the market by aggressive advertisement
done by large scale& multinationals. The small sector must be protected from this, if the
small sectorhas to survive.
9. Changing the Labour Laws:-
The present labour laws must be changed to have more flexibility & suitability for running
of small scale sector.
10. Removalof inspector Raj: -
A small scale industry is generally a single man show. He can not find time to attend to all
the inspectors visiting small scale factory. The InspectorRaj must be finished.
Conclusion can be taken considering above challenges SSI unit in the following
areas will have a bright future & compete with world industries very well as these are the
areas of our strength:-
1. tourism & hotel industry
2. dairy Industries
3. food processingindustries
4. Floriculture
5. Shoe& leather Industries
6. Forging unit
7. steel alloy casting
8. Plastic processing Industry

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6. ROLE OF FIs & BANKS IN SSI FINANCING:
The credit needs of entrepreneurs could be divided in three parts: short term, medium term
and long term finance. Accordingly, the conventional mechanism for financing of SSIs in
India stressed provision of terms loans and working capital. The public and private sector
banks, Small Industries Development Bank of India (SIDBI), Regional Rural Banks
(RRBs), Urban Cooperative Banks (UCBs) and foreign loans for setting up of new
industries or modernization of the existing ones, Khadi and Village Industries Commission
(KVIC) and Khadi and Village Industries Boards (KVIBs) assist in financing khadi and
village industry sector. National Small Industries Corporation (NSIC) and State Small
Industries Corporations (SSICs) in their own way, also attempt to develop the cottage and
small scale sector by supplying machinery on a hire-purchase basis to small-scale and
ancillary industries, inclusion of the value of machinery and equipment already installed.
SFCs are one of the oldest credit institutions in the country which mainly cater to he long
term credit needs of small & medium enterprises. At present, there are 18 SFCs covering
the entire country & they have been in existence for 5decades now. The cumulative
sanctions & disbursements of SFCs aggregated Rs33000 crore & Rs 27000 crore
respectively. It needs to be highlighted that almost 75% of SFCs assistance flows to the
SSI sector. Over the years the financial health of SFCs has become a cause of concerns.
Some of the reasons for the poor financial health of SFCs is poor recovery performance
increase in non per forming assets Govt. of India had amended the SFCs act1951 in the
year2000 so as to give them more operational flexibility& freedom so that they can
improve their performance& play their role more effectively.

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7. STEEL FABRICATION/STEEL SHUTTER/STEEL ALMIRAH
INTRODUCTION:
Fabricated steel products cover a host of items such as steel furniture, storage tanks, grill
gates, rolling shutter etc. Of these items, steel furniture which are strongly consumer-
oriented are a separate class of products. The other items such as gates, grills, tanks and
rolling shutter may be categorized together while there are a number of steel furniture
units in the north-eastern region. Units manufacturing items like tanks, gates, grills, rolling
shutter are few in number and hence there are good prospects in the line for entrepreneurs,
especially those who are technically qualified.

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ABOUT THE PRODUCT:
The unit propose to manufacture steel fabricated items like gates, grills, rolling shutters
and steel tanks which are required both for domestic and commercial establishments.
These steel products are the only replacement of wood in terms of cost and durability.
These products will be varied in shapes and sizes as per the demand.
MARKET POTENTIAL:
It is assumed that the housing shortage is about 7 lakh in urban areas and 70 lakh in rural
areas. To mitigate the housing shortage in about five years time about 1.25 lakhs urban
dwelling per year and 14 lakhs rural dwellings per year would have to be constructed. It
may be conservatively assumed that an average at least about 90,000 urban dwellings and
10 lakh rural dwellings are constructed per year. Assuming that out of the new dwellings
to be constructed the requirement of gates, grills, rolling shutters, tanks would be about
5% in case of rural dwelling and 20% in case of urban dwelling the demand for these
products estimated as under.

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FABRICATION SHOP2016
A) Block capitalRequirement
i) Land & Building : Rs. own
ii)Land –Leasehold R39,600.00
ii) Covered area sq ft 1000sqft Rs.50,000.0
iii)Water & Sanitation
Arrangement
: Available from
D.M.C
MACHINERY & EQUIPMENT
_ARTICULARS Cost(Rs) Nos Total Cost(Rs.)
i.) Lathe Machine 60,000 1 60,000.00
ii) Welding Machine 18,000 1 18,000.00
iii) Sheet Bending M/C 25000 1 25,000.00
iv) Grinding Machine 4000 1 4,000.00
v ) Bench grinding M/C 3000 1 3,000.00
vi) Stand drillM/c 16000 1 16000.00
vii) Cutozen Set 4000 1 4000.00
viii) Spray painting M/C 12000 1 12,000.00
1,46,000.00
FOR RESEARCH & DEVELOPMENT
i)Cost of fright & sales Tex 5,000.00
ii)Installation & Electrification charges
15,000.0
0
iii)Mise. Expenses 2,000.00
iv)Escalation 2,000.0
v)Office Furniture &
equipment 15,000.0
1,85,000

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III. TOTAL BLOCK CAPITAL
i) Land & Building 89,600.00
ii) Machinery &
Equipments 1,85,000.00
2,74,600
C. RECURRING EXPENDITURE
Raw Materials components Requirement (
Monthly)
Sl.
No. Particulars
Unit Cost
(Rs.) Quantity Required (MT) Total Cost(RS.)
i) CRC Sheet 35000 2 70,000.0
ii)Angel flat channel etc 35000 1 35,000.0
iii)Paint red oxide Welding rod DA
&Oxygen 20,000.0
iv) Fittings 10.000.0
1,30,000.00
Staff & Labours (Monthly)
Sl.NoCategory Rate(Rs.) Nos. Amount(Rs.)
i.) Skilled Workers 4,000.00 2 : 8000.00
ii) Unskilled Workers 3000.00 3 : 9000.00
Iii Perquisites / Benefits --------------
17,,000

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III OVERHEAD EXPENSES (MONTHLY)
Sl. No. Particulars Amount (Rs.)
i) Rent 0.00
ii) Power- Electric 4000.00
iii.) Tax License & Insurance 300.00
iv.) Repair & Maintenance 500.00
v.) Traveling Expanses 500.00
iv) Carriage (inward/ Outward) 2000.00
vi.) Advertisement/ Publicity 500.00
viii.)
Office Expenses/
Contingency 500.00
ix.) Misc. Expenses 500.00
x.) Consumable Item 2800.00
11,600.00
:
TOTAL RECURRING EXPENDITURE (MONTHLY)
Sl.No. Particulars Total Cost (Rs.)
a) Raw Materials : 1,35,000.00
b) Staff & Labours : 17,000.00
c) Overhead Expenses : 11,600.00
1,63,600.00

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D. WOKING CAPITAL REQIREMENT
Monthly Recurring Expenditure x 3 monthly (maximum) 3,27,200.00
Capital Investment . Project Cost
Block capital Rs. 2,76,600.00 Block capital Rs. 3,13,600.00
Working Capital Rs. 3,27,200.00 25 % of W.C. Rs .81,800.00
TOTAL Rs 6,01,800.00 TOTAL Rs. 3,56,400.00
Rate(Rs.) Qty(MT) Amount(Rs)
a.) recurring Expenses Rs. 163600.00 Steel Almirah 5000.00 20 1,00,000.00
b.) Dep.of Bldg.@ 5 % Rs. 208.00 Reconditioning job 90,000.00
c.) Dep.0f Machinery@10 % Rs 1217.00
d.)Instt on Term Lone @13 % Rs. 6520.00
e.) Wastage 1 to 2 % Rs. 0.00 .
f.) Gross Profit Rs. 18455.00
TOTAL Rs 1,90,000.00 TOTAL Rs.1,90,,000.00

18. FABRICATION SHOP
F.Tentative Profit & loss Account (Monthly)
a.)Profit Sale Recio Monthly Profit x 100 = 19.70 %
Monthly Sale
b.) Return of Investment Annual Profit x 100 = 36.80 %
Capital Investment
c.) B.E.P. Fixed Cost x 100 = 52.22%
Fixed Cost + Profit
Fixed Cost / month composes of :-
40 % of Salary & Wages = 29,040.00
40 % of Consumption of Power &
Overhead expenses = 60,800.00
100 % of rent =
100 % of tax, License & Insurance = 100.00
100 %of Depriciation = 36,645.00
100 % of Instt. ( Payable to Bank & other) = 1,28,330.00
2,54,915.00

19. FABRICATION SHOP
REFERENCES
1.DAS FABRICATION SHOP,BHADRAK
2.www.fabricationwiki.com
3.www.google.com