Lock Manufacturing Project Report



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Aligarh’s lock manufacturing history is fascinating. A gentleman from England founded Johnson and Company almost 125 years ago, in 1870, to import locks from England for sale in Aligarh. Johnson and Company began regular lock production on a small scale in 1890, cutting the sheets and shaping them. Aside from England, sheet metal locks began to be imported from Germany for sale in Aligarh.

Johnson and Company and a few other companies began producing sheet metal locks in 1930, based on German locks. These locks are known as Aligarh locks since they were made in Aligarh. However, due to a family feud, this world-famous lock manufacturing company has closed its doors. When the company went bankrupt in 1975, the engineer, contractors, mechanics, and labourers who worked for it started up their small-scale lock units. Aligarh has recently become India’s largest lock manufacturing centre. The origins of the lock business in Aligarh have been interpreted in several ways. Regarding its origin, Jain offered one theory.

Aligarh’s lock business dates back over a century and is considered a traditional occupation of Aligarh residents. At least 5,000 lock manufacturing units’ employ about 2 lakh people, either directly or indirectly. The majority of craftspeople in this industry are Muslims, but Hindus and Muslims jointly own large industrial units and corporate companies. Muslim artists make approximately 80% of Aligarh’s locks. They work as labourers and make things for major corporations.

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Lock Industry’s Categories

The lock industry’s entire structure can be classified into three categories:

Small Scale Factories. Units that produce forty to eighty percent of the components themselves are registered with the District Industries Centre and hire outside labour.

Cottage or household units. Cottages or housing units serve as residences and workplaces for the production and distribution of lock parts to small industries. Family labour and simple tools are used to carry out the majority of their manufacturing operations.

The traders or commission Agents. The commission agents purchase all of the components of locks from household units and assemble them before selling them under their brands.

Market Potential

Aligarh is the leading manufacturer of locks for the national market, accounting for 80% of the Indian lock industry’s turnover. Because this industry falls under the small-scale sector, it benefits from the government’s facilities and discounts for small-scale businesses. Even then, the industry was beset by issues relating to finance, raw materials, marketing, and so on. Because it is still not operated on modern lines, it is unable to compete effectively in the international market. In this study, an attempt was made to give a critical analysis of the industry, in which the industry’s structure and current situation were analysed.

The industry’s challenges have been explored, and appropriate treatments for bringing the industry out of its current state of stagnation.

Locks are not only important for safety in Aligarh, Uttar Pradesh old city; they also open the entrance to a craft history. Consider a fish-shaped lock suspended from a rod-shaped like a seated camel or an owl with large round eyes. These brass locks have a triple locking mechanism and are handcrafted. They were on display at a recent exhibition in Delhi. As indirect exports, some Aligarh-based lock makers sell their locks to merchant exporters in Delhi, Mumbai, and Chennai. Some lock manufacturers sell their products to hardware exporters who include them in larger shipments of hardware. Because of a developing market where price realisation is faster, and the industry is more organised, the shift from handcrafted to machine-made locks is taking place.

Handcrafted locks are costly, and the volume of manufacture cannot compete with that of machines. “Handmade locks used to have a 50 to 60 percent market share, but now they barely have a 5% market share.”

The lock industry, which employs over 6,000 cottage and mid-scale lock units in Aligarh and generates over Rs 210 crore in annual revenue from the export of locks and other brass hardware, is the city’s economic backbone.

Usage of the product

A lock is a mechanical fastening device that restricts access to the space or property enclosed by a door, vehicle, or container. It’s usually unlocked by a key or a combination of keys.

Compliances Required

This product comes under the ambit of small-scale industries, so the basic quality standard of manufacturing should be maintained. Also, it is advisable to check your local laws as per your state or area to complete all compliances. Still, some basic points are explained here while we go for compliances:


We can start with a proprietorship or partnership firm.

Investment & Profit from Lock Business

When an entrepreneur starts a firm, they always have a business plan, also known as a project report, on hand, and you can quickly compute financial figures from this project report. If you need a location to work but don’t have one, consider renting one, as we say during the early stages of your firm. Renting a space allows you to avoid making large investments in land and buildings. You will, nevertheless, need to invest fixed cash in the acquisition of machines.

You can readily invest in raw materials, employing people, licencing and registration, administrative fees, and transportation with working capital support. However, you’ll need to set aside money for advertising and promotion. This business approximately needs;

Capital investment: 25 – 30 Lakhs…Depending upon the production and business model, profit earned can be 9 to 10 percent. 

Land, Electricity, And Manpower Requirement

Land Required: 1500 – 1800 square feet area.

Electricity Load required: 15 – 18 kilowatt load.

Manpower required: We can start this manufacturing business with 12 to 15 artisans, including 2 – 3 machine operators, 3-4 skilled labour, 3 – 4 unskilled labour & office staff.

Raw Material

Brass is the base material for these handcrafted locks (60 percent copper and 40 percent zinc). The moulds are made of brass. In the sand casting process, this is utilised for shaping. Standard five-tumbler key locks are constructed of a variety of durable metals. Locks’ interior mechanisms are usually composed of brass or zinc die-cast. Steel or stainless steel is commonly used for the cam, the tongue protruding from the lock to secure it. Brass, chrome, steel, nickel, or any other robust metal or alloy can be used for a lock’s exterior casing. The average cost of raw materials for a set of Door Locks is Rs. 320-390 (Approx.). So majorly following raw materials required:

  • Brass Blocks
  • Mild Steel Sheets
  • Case Hardened and stainless Steel Sheets
  • Bolt, Key Cylinder, spring, Lever, Washer & similar small appliances.

Machines and Equipment Required

  • Furnace
  • Power Press
  • Drilling Machine
  • Sheet Metal Bending Machine
  • Milling Machine
  • Grinding Machine
  • Profile Moulds
  • Casting Patterns
  • Spray Painting Machine
  • Electroplating Plant
  • Foundry Equipment
  • Other Handling Equipment
  • Machinery Tools

Manufacturing Methodology

  • Lock makers manufacture locks using both ancient and modern processes. The conventional process is mostly utilised to create heavy brass and iron locks. The lock maker creates a lock and collects an order from the trader using this mechanism. While making an order, the trader also gives the lock maker a cash advance or a loan to purchase necessary raw materials and components.
  • The lock maker then sends the raw material, together with a model, to the foundry. The foundry casts all of the pieces according to the specifications and then delivers them to the lock manufacturer, who assembles them.
  • A die-casting machine is used to die-cast and cut the major mechanical components of the gate entrance lock housing.
  • After the mechanical pieces of the entrance door lock have been die-cast, they must be polished. The trim is the most important thing to polish. Surface cleaning, grinding, polishing, and anti-corrosion treatment are crucial steps in the polishing process for the trim.
  • Then applying a quenching treatment to the lock core to increase its hardness and prevent it from being damaged by tools like drills and prys, finally using a wire cutting method to machine a keyhole with a thickness of 0.1-0.9mm.
  • The matched ultra-thin key has a reinforcing rib and is produced by punch forming stainless steel with a certain strength and elasticity, grinding machining, or wire cutting, resulting in the thickness, width, and curvature of the ultra-thin key being mutually fit with the keyhole of the lock core.
Further Process
  • The gate entrance lock can be assembled after the trim, and mechanical parts are completed. The final assembly combines semi-automatic and manual auxiliary production while also combining scientific and reasonable assembly processes, dividing assembly positions into dozens of positions, making the assembly more reasonable, strengthening the assembly process’ efficiency, and improving assembly quality.
  • Before marketing the locks, the dealers have them polished and engraved with their brand name. Smaller locks are created in factories using contemporary manufacturing techniques. Cutting, bending, forming grooves, polishing, and piercing holes in locks and keys are all done with power presses.
  • Buffing machines or dhol or drum polishing are used to polish the corroded components of locks.
  • If visible sections aren’t electroplated, they’re spray painted. Different units handle different aspects of the lock-making process. The final phase in the appearance of a main entrance door lock is electroplating. Multiple processes and components are involved in its impact. The results of different electroplating firms, masters, electroplating bath compositions, and methods are all distinct.
  • Cutting, bending, and groove-making operations are typically performed in relatively large units using power presses. In contrast, activities such as polishing, electroplating, spray painting, and assembly are typically performed in small workshops and household units.
  • The key is made initially in a normal five-tumbler key lock. The lock maker purchases the key blanks, who then cuts the ridges, or combinations, in each key. Each key features five bumps, each of which is sliced to a different degree.
  • From the time the specs are supplied to the time the locks are packed and dispatched, a respectable manufacturer of anything except low-security locks may take eight to twelve weeks to build locks for an order.

Target Customers

  • Wholesalers
  • Distributors
  • Retailers
  • Online shopping websites
  • Hardware Shops
  • Furniture making small scale Industries
  • Local Shops. 

Marketing Strategies

  • Personal selling
  • Advertising
  • Sales Promotion
  • Direct marketing
  • Publicity

Key Points Cover in Sample Project Report 

Table of Contents

Sr. No.Particulars
1Purpose Of The Document
3Market Potential
4Product Description
5Product Uses
6Raw Material
7Manufacturing Process
8Project Components
10Civil Work
11Machinery & Equipments
12Miscellaneous Asset
13Power Requirement
14Man Power Requirement
15Financial Aspects
16Balance Sheet
17Profitability Statement
18Cash Flow Statement
19Repayment Schedule
20Depreciation Schedule
21Computation Of Sale
22Production And Raw Material Consumed
23Closing Stock
24Computation Of Working Capital
25Computation Of Electricity
26Salary & Wages
27Financial Indicators
28Break-Even Analysis
30License & Approvals
31Swot Analysis

Apart from this, all the information is being provided. To help in preparing project reports.


Q1. Which factors affect the pricing of the product?

Ans. Following factors affect:

New product- as it is a new product and in the market, its name is not established. Therefore the prices are less.

Product cost- cost fixed after considering all operating expenses and profit margins.

Penetration Pricing- always tries to keep prices low to capture a large market.

The extent of competition in the market- seeing the intense competition with other competitors and keep your prices low.

Q2. What types of channels are used for the distribution of locks manufactured?

.Ans. Sold through two-level channels, i.e. Manufacturer-Wholesaler-Retailer-Consumer. This is used to cover some large market areas.

The physical movement of the product- means locks manufactured in one area and transported to the rest of India.

Q3.How much profit can a lock manufacturer make?

Ans. The lock manufacturing business is not so big that it can provide you with so huge amount of profits, but it provides handsome income by giving some smart efforts like contacting small furniture traders or manufacturers. Provide free samples at local retail or hardware shops to highlight your business. Profit earned can be 9 to 10 percent.

Sample Project Report Format

In our project report format, we cover technology details, its diagrams, flow chart etc. as and when required or deemed fit to include. Also, prepare in-depth financial calculations which is necessary for the Investor/bank.

You will get the  report data l Lock Manufacturing Business in PDF or MS word. Which you can use easily. You can also modify the information according to your need. You will be able to access the data easily according to the your requirement. Additionally you can easily convert the data to PDF format.

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For whom are these formats useful?
  1. CA Chartered Accountants
  2. Tax Consultants
  3. Small Business Owners
  4. Students
  5. Engineers
  6. Who want to self study 

In addition to those who want to prepare project reports themselves.

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