Check out the power extension board project report if you are planning to start an electric switchboard business in India then you are thinking of a highly profitable business idea because every construction site requires switchboards or extension boards. You might be knowing that switchboards are usually changed also from time to time, so they have an evergreen demand in the country.
The extension board is called a switchboard or switch box. It is equipment to set electrical switches, change them and protect devices from breakage or fuse. An extension board is needed at every circuit that is fixed with one main circuit of installing wire in a building so that incoming power supply can be easily handled easily and safely.
An extension board is helpful to protect the electrical distribution system and connect the electrical equipment from getting damaged because of the faults like short circuits, earth leakage or overload. The conductor because of which electrical energy moves from the mains to the electrical appliance of the consumer is called the distribution system. It is one of the best electrical business ideas in India.
The system of this distribution of electricity is called a low voltage distribution system. The wires that are used in the houses of the customers are generally two-wire or three-wire systems. The phase and neutral and phase, neutral and Earth. The choice of the wire to use in power distribution depends on the type of power that is going to utilize in a circuit.
You can manufacture extension boards as 5A, 15A, 30A, 63A etc. A businessman needs to prepare the project report of the power extension board and include every detail regarding this business in it so that you can check out all the important details and consider it as your plan. He will be able to check out details on every step you make.
Table of Contents
- 1 Extension Board Project Report
- 2 What is Power Extension Board Business?
- 3 Working Of Extension Boards
- 4 Requirements For Extension Boards Business
- 5 Investment For extension Boards Business
- 6 Land Required For Extension Board Manufacturing Business
- 7 Pollution Control For Extension Boards Manufacturing Business
Extension Board Project Report
The power extension boards are a very common and easy way to transfer power to electrical appliances. It connects through an insulated electric wire that is flexible too and is fitted with a plug on one side and sockets on it. The sockets are arranged in a line that allows them to plug in devices which have cords but they are not enough to connect with the socket.
The power extension board project report is all about setting up the power extension board assembly unit or manufacturing them at the best-chosen location. The power extension board project report is not only important for getting you a bank loan but also for presenting and learning all important details of this business.
You need to have all the important documents that this project needs so that you can start it or for participating in the MSME Sector development schemes, etc. It will also assist you in complying with and completing government-required formalities that connect with planning and manufacturing or assembling operations in the power extension board project.
The detailed power extension board project report is written and developed in pdf format that is easy to download. You can convert the power extension board project report into pdf format and make it in MS Word and Excel format as well.
What is Power Extension Board Business?
Extension board is used in all small, middle or high-class construction works. In this business, you need to manufacture the extension boards in your company and sell them to distributors, dealers and retailers for further selling. If you start this business on a small scale, then also you can make good money from it.
You can later expand your business by manufacturing electrical appliances also and selling them. In the beginning, you can start with a socket, plug, switchboard, switch, 3-Pin etc. You can manufacture them using different raw materials and devices.
Working Of Extension Boards
The extension board or power strip comprises multiple sockets that are independently connected to flexible power cables and are enclosed in a shockproof shell of plastic. It transfers power from the sockets and sends it to the devices that are connected to multiple sockets.
Extension boards are made in different designs and shapes with features like individual switches and LED indicators that tell the socket is working. The features of the extension board are that they help to distribute power amongst the connected devices. It helps the electrical devices to work flawlessly and connect the sockets that are parallel to each other.
Requirements For Extension Boards Business
There are several things to be kept in mind before starting the Extension boards business. These items depend on the scale of the business and its type. You require different machines and equipment to proceed with this business. If you start your business on a small scale then you require less equipment but for a large scale, the equipment is more. Here are a few items that are required for extension board business in India.
- Smart Business Documents
- GST Number
- Business Registration
- Machines and Raw Materials
- Sales and Marketing
- Brand Registration
Investment For extension Boards Business
To start an extension board business you need an investment that can be a minimum of Rs 8 lakh and a maximum there is no limit. You will have to buy the basic machinery and raw material also. The hiring of employees, packaging, marketing, every step is important and requires money. The expenses should be made wisely and within budget. You need to have a flow of funds to do all these activities.
Land Required For Extension Board Manufacturing Business
To start this business you must have investment. Once the investment is ready then only you can initiate this project. You have to look for space to start an extension board business in India.
You can choose any location that suits your budget for this business. Be it the main market, or the side location in your city. You can buy your land in small areas and it will not be much expensive or you can get it on lease as well.
To start a power strip business the land required is around 800 to 1200 square feet at least.
The switchboards and power extension boards are an important part of a power distribution system. It has a vast demand in the market and provides you with a good business opportunity to you. India being a developing country, has a fast-growing population and rising economic growth and has great demand for essential items like extension boards for houses and buildings to supply electricity.
As the population increases, so is the demand for electrical power. The demand for electrical power grows with commensurately the requirement of the infrastructure in the power sector. This phase increases the power distribution and makes the production of electrical switchboards necessary in the market. The business of switchboards has a good scope.
Basis and Presumptions
- The calculation is based on the capacity of production that is done on a single shift duration considering 75% efficiency in production.
- The maximum utilization of capacity on single shift time is 300 days per year. In the first and second years of your business, the capacity utilization of operations is 60 to 80% respectively.
- The manufacturing unit is expected to attain full utilization of capacity from the third year.
- The cost of raw materials, wages and salaries, capacity utilization, rent or utilities etc are based on the existing rates of extension boards.
- The cost factor is different from time to time and in location.
- The term loan interest and working capital finance are available at 14% of the interest rate on average. This rate may vary according to the policy of giving a loan from the bank or financial institution.
- The cost of equipment and machinery that are referred to make a model varies in price.
- The percentage of break-even point indicates full utilization of capacity.
- The cost of project preparation can be taken as a pre-operative expense.
- The important machinery for producing the power extension boards and other test equipment that are needed are indicated.
Raw Material Requirement For Extension Board Business in India
- phenol formaldehyde moulding powder
- screw pin
- Flap and spring
- Packaging material
Machinery Required For Manufacturing Extension Boards
- Compressor moulding machine
- Buffer machine
- Testing equipment
Manufacturing Process of Extension Boards
The power extension board is made up of plywood, acrylic material and enclosures of fabricated PVC PVC that are totally or semi-closed type providing control of electric power to the equipment and appliances.
At times to create a provision for indication of voltage, frequency, and current, indicating lamps are reflected on the main board face. The power supply is regulated and is available from switches on the switchboard and MCB and fault are protected from the use of ELCB.
The enclosure of the metal sheet for the control panel is fabricated after designing in the unit. The accessories and components are purchased from the market by an electrician and fitted according to the design of the board.
The circuit according to the design is laid out and the extension board is tested properly for its functioning as per set standards.
In short, the process of manufacturing power extension boards includes:
- Establishing the need and further designing the electric circuit diagram.
- Designing and fabricating the switchboard by marking, cutting and drilling the metal sheet. You may be required to grind the sheet also.
- Now the components are fixed and control starts.
- The wiring is done according to the diagram.
- The testing is done, according to the specifications made.
Quality standards and control say that the extension boards are manufactured according to the set standards of the electricity board and the rules of the state electricity board.
The components and required accessories are introduced according to the requirement and demands of the customers and confirm the specifications of IS.
The workmanship standard and raw material quality are used as per the basic need of the customers.
Here we are going to discuss the per annum production capacity of the power extension board company.
25 switchboards of various sizes and working for 25 to 26 days a month. The charges of switch cutting per switch slot are Rs 20 and every board that is manufactured has a slot of 4 to 12 on an average of Rs 6 to Rs 120per board. This means the production capacity for say 25 per day X 25 days X 12 months = 7500. Now 7500 is the number of extension boards X 120Rs = Rs 9 lakh per annum.
Licenses and Permits For extension Boards Business
Since it is a manufacturing business so you require important licenses from the local authorities and the government.
To start a manufacturing business of power extension boards, you require a trade license from a local authority. It is important to officially register your business. You might require a few more permissions from the local authorities.
While you start the extension board business you must get MSME registration for it. It is important for getting grants and benefits from the government for your business. You will also be able to get the loan at a low-interest rate to further progress your business.
To create a brand for your business your business should be a registered one. It is important to present your product in the market so you need to get it registered by a government authority.
To obtain a GST number you must get the GST Registration done.
Pollution Control For Extension Boards Manufacturing Business
Your business is going to manufacture extension boards using machines, so a pollution control license is mandatory.
The government of India considers pollution control the utmost priority. Small or medium enterprises should adopt an eco-friendly attitude and try pollution control measures. However, the small and medium-scale power extension board manufacturing units have very less pollution.
Conservation of energy is another growing need and so adding to energy cost is important. Greater thrust for energy efficiency in this sector is provided by the government of India since the 1980s. The act of energy conservation, 2001 has been enacted on 18th august 2001. It provides effective use of energy to conserve and control building Energy Efficiency Bureau that falls under this act.
I am listing a few steps that may help in conserving electrical energy.
- Adopting energy-conserving technology, testing facilities and production aids.
- Effective management of machinery, process or system yielding energy conservation.
- Proper use of electrical energy during the complete process. Also maintaining it periodically matters.
- Using power factor correcting capacitors.
- The selection and layout of the lighting system should be proper. It should ensure timely switching off or on lights.
- Using fluorescent lamps when possible
Staff Requirement for manufacturing extension boards
You will have to hire workers to manufacture extension boards or switchboards for your business. Skilled staff includes a mechanical engineer. You may also need to hire around 10 more people who know the industry and machinery to be used in your business. It is advised to hire staff who has already worked in the electrical business.
Marketing of Extension boards
Once your product is ready you need to begin the packaging and labelling of the ready products. Here comes the marketing of your products. The best way to market your product is the social media these days.
Therefore you can plan for social media marketing and advertise your product in the local market also. You can directly connect to the retailers or dealers for selling your product. One can provide the samples of your extension boards to them and they can try your product. A businessman will soon get a response for your products and then you can begin your supply.
Create your brand for the power extension board manufacturing business
You will require a brand name for your business because it is a manufacturing business so it must have a name. To sell your product in the market, the dealers, retailers and even customers ask for the brand name of the product they are buying. Thus you need to think of a good brand name that you can plan to keep for your product.
You can further expand your business using the band name only as it Is the identity of your business. People also buy products from a good brand company only. Although the quality of a product is good if it doesn’t have a good brand name, the customer may not consider it.
Target Market For Power Extension Board
The target market for the switchboard in India is the retail store like the departmental or supermarket. You can surely sell them at electrical stores in huge numbers. The highly populated centres like cities and towns also have good demand for power extension boards.
Along with selling switchboards to the listed locations, you can sell them at retail channels and make them available through online mediums also. It ensures a regular supply of switchboards from your manufacturing house to customers directly.
Contents of Power Extension Board Project Report
- Highlights of the project
- Prospect of Investment
- Potential market and Target Audience
- Marketing Strategy
- Success Factors
- Process details and Technicality
- Quality and Standards
- Raw Material and Consumables
- Power and Utility
- Implementation Schedule
- Basis and Presumptions
- Capital Investment Estimate and Detailed Project Economics
- Working Capital Required
- Total Project Cost
- Means of Finance for Project
- Estimation Of Sales
- Profitability Statement
- Calculation of Interest
- Term Loan Repayment Schedule
- Debt Service Coverage Ratio
- Break Even Point Analysis
- Cash Flow Statement
- Balance Sheet
- Rate of Return
- Pay Back Period
What other business can be started with this business?
With this business, you can begin the following industry and get detailed information about them by clicking on the given link.
Major Players of Extension Boards Business
- GM Modular
Frequently Asked Questions On Extension Board Project Report