Detailed Project Report (DPR) on air conditioner manufacturing indoor units and outdoor units

AIR CONDITIONER MANUFACTURING
(INDOOR UNITS AND OUTDOOR UNITS)
[CODE NO.3423]  


An air conditioner is a machine which keeps the air in a building cool and dry.


The purpose of an air conditioner is to maintain a comfortable indoor environment. The comfort we are used is to determined by a combination of 3 factors.

•    Temperature
•    Humidity
•    Air Distribution

For this reason, the main purposes of air conditioners are to:

•    Control room temperatures (cooling/heating).
•    Control room humidity levels (drying, humidifying).
•    Optimise air flow (circulation, distribution).
•    Clean the air (filtration)


Working principle

An air conditioner collects hot air from a given space, processes it within itself with the help of a refrigerant and a bunch of coils and then releases cool air into the same space where the hot air had originally been collected. This is essentially how all  air conditioners work.

Many folks believe that an air conditioner produces chilled air with the help of machines installed inside it, allowing it to cool a room so quickly. That might also explain why it consumes so much electricity. In reality, however, that’s a misconception. An air conditioner is not a magical device; it just uses some physical and chemical phenomena very effectively to cool a given space.

When you switch an AC on and set your desired temperature (say, 20 degrees Celsius), the thermostat installed in it senses that there is a difference in the temperature of the room’s air and the temperature that you’ve chosen.

A thermostat constantly monitors the temperature of the system so that it’s maintained near a user’s desired point.

This warm air is drawn in through a grille at the base of the indoor unit, which then flows over some pipes through which the refrigerant (i.e., a coolant fluid) is flowing. The refrigerant liquid absorbs the heat and becomes a hot gas itself. This is how heat is removed from the air that falls on the evaporator coils. Note that the evaporator coil not only absorbs heat, but also wrings out moisture from the incoming air, which helps to dehumidify the room.

This hot refrigerant gas is then passed on to the compressor (located on the outside unit). Being true to its name, the compressor compresses the gas so that it becomes hot, since compressing a gas increases its temperature.

This hot, high-pressure gas then travels to the third component – the condenser. Again, the condenser remains true to its name, and condenses the hot gas so that it becomes a liquid.



COST ESTIMATION

Plant  Capacity                                                      :       400.00 Nos./day                                           
land & Building (4000 Sq.mtr)                            :    Rs.  4.30 Cr
Plant & Machinery                                                 :    Rs.  3.42 Cr
Working Capital for 2 Months                             :    Rs.  18.40 Cr
Total Capital Investment                                     :    Rs.  26.60 Cr
Rate of Return                                                      :    86%
Break Even Point                                                 :    21%

INTRODUCTION    
HERE’S A SIMPLIFIED DIAGRAM OF THE AIR-CONDITIONING PROCESS    
ROOM AIR CONDITIONER    
SIZING AND SELECTING A ROOM AIR CONDITIONER    
OTHER FEATURES TO LOOK FOR INCLUDE    
SPLIT AIR CONDITIONER    
CONSTRUCTION    
PARTS OF SPLIT AIR-CONDITIONER    
WALL MOUNTED INDOOR UNIT    
EVAPORATOR COIL OR THE COOLING COIL    
AIR FILTER    
COOLING FAN OR BLOWER    
DRAIN PIPE    
LOUVERS OR FINS    
OUTDOOR UNIT    
REFRIGERANT PIPING OR TUBING    
USES AND APPLICATION    
B.I.S. SPECIFICATION    
MARKET AIR CONDITIONERS    
ROOM AIR CONDITIONERS    
FOCUS SHIFTS TO INVERTER ACS – TO BE AT 50% OF SALES BY FY20
   (10-12% IN FY16)    
CY17 OUTLOOK – IMD EXPECTS ‘ABOVE NORMAL SUMMER SEASON’    
ROOM AIRCON INDUSTRY SHIFTS TO INVERTERS    
INVERTER ACS TO ACCOUNT FOR 30% OF INDUSTRY VOLUMES IN
   FY18E AND 50% IN FY20E    
VOLTAS MAY NOT SEE MEANINGFUL GAINS EVEN WITH LG’S COMPLETE
   EXIT FROM FIXED-SPEED ACS    
HIGH COMPETITIVE INTENSITY    
BRAND, DISTRIBUTION, SERVICE CENTER NETWORK AND DEALER
   MARGINS ARE KEY    
SUMMER STRATEGIES OF AC MANUFACTURERS    
BLUE STAR – IMPRESSIVE LINE-UP OF AC MODELS; MARKET SHARE
   TARGET AT 13%    
VOLTAS – TARGETING 15-20% GROWTH THIS SUMMER SEASON    
LG INDIA – LOOKING FOR 30% GROWTH IN CY17    
DAIKIN INDIA – TARGET TO EXPAND REACH AND MARKET SHARE;
    DOUBLING CAPACITY AT NEEMRANA TO 1.2M UNITS    
PANASONIC – ‘A BETTER LIFE, A BETTER WORLD’ – AIMS FOR 30-35%
   GROWTH IN FY18    
GODREJ APPLIANCES – EYEING 20% SHARE IN INVERTER/5-STAR
   AC SEGMENT    
SAMSUNG – INVERTER RANGE LAUNCHED IN AFFORDABLE LUXURY
   SEGMENT    
VIDEOCON – TARGETS 13% SHARE AND TO INCREASE PRESENCE
   IN TIER 2/3 CITIES    
DETAILED EXPORT DATA OF SPLIT AC    
DETAILED IMPORT DATA OF SPLIT AC    
MANUFACTURERS/SUPPLIERS OF SPLIT AC    
PROCESS FLOW CHART    
PRODUCTION PROCESS    
(1) PROCUREMENT OF RAW MATERIALS    
THE MANUFACTURING PROCESS    
(1) MAKING THE PARTS    
(A) CONSTRUCTING THE CASING, BRACKETS, AND OTHER SUPPORTS    
(B) PUNCH PRESSING THE SHEET METAL FORMS    
(C) CREATING ENCASEMENT PARTS FROM GALVANIZED SHEET METAL
     AND STRUCTURAL STEEL    
(D) CLEANING THE PARTS    
(E) POWDER COATING    
(F) FABRICATION OF COIL    
(G) FINISHING THE EVAPORATOR AND CONDENSER COILS    
(2) ASSEMBLY    
(3) CHARGING AND FINISHING    
(4) QUALITY CONTROL    
(A) PRODUCTION ROUTINE TESTS    
(I) GENERAL RUNNING TEST —    
(II) PRESSURE TEST OR LEAKAGE TEST —    
(III) INSULATION RESISTANCE TEST —    
(IV) HIGH VOLTAGE TEST —    
(V) PERFORMANCE TEST —    
(VI) LEAKAGE CURRENT TEST —    
(VII) EARTHING RESISTANCE TEST —    
(B) TYPE TESTS    
(6) MARKING    
PLANT LAYOUT    
SUPPLIERS OF RAW MATERIALS    
ALUMINIUM FIN STOCK FOIL    
COPPER TUBE    
M.S SHEETS    
ABS GRANULE    
BRAZZING WIRE    
MIG WELDING WIRE ELECTRODE    
REFRIGERANT GASES    
PICKLING CHEMICALS    
SUPPLIERS OF AC COMPRESSOR    
AIR CONDITIONER PARTS    
SUPPLIERS OF PLANT AND EQUIPMENTS    
SUPPLIERS OF FIN PRESS    
SUPPLIERS OF FIN DIE    
SUPPLIERS OF VERTICAL EXPANDER    
SUPPLIERS OF HAIRPIN BENDER    
SUPPLIERS OF AUTOMATIC BRAZING MACHINES    
CNC PRESS    
POWDER COATING MACHINE    
INJECTION MOLDING MACHINE    
SUPPLIERS OF IDU ASSEMBLING LINE    
SUPPLIERS OF BRAZING MACHINES    
SUPPLIERS OF REFRIGERANT CHARGING UNIT    
SUPPLIERS OF REFRIGERANT (HALIDE) LEAK DETECTOR    
ELECTRICAL MEASURING INSTRUMENTS    
SUPPLIERS OF POWER TRANSFORMER    
SUPPLIERS OF ELECTRICAL PANEL    
AIR POLLUTION CONTROL EQUIPMENTS    
AIR COMPRESSORS    
MATERIAL HANDLING EQUIPMENTS    
FIRE FIGHTING EQUIPMENTS    
SHOT BLASTING MACHINE    
                            

APPENDIX – A:

 1.      COST OF PLANT ECONOMICS      
 2.      LAND & BUILDING                                      
 3.      PLANT AND MACHINERY                                  
 4.      FIXED CAPITAL INVESTMENT                             
 5.      RAW MATERIAL                                         
 6.      SALARY AND WAGES                                     
 7.      UTILITIES AND OVERHEADS                              
 8.      TOTAL WORKING CAPITAL                                
 9.      COST OF PRODUCTION                                   
10.      PROFITABILITY ANALYSIS                               
11.      BREAK EVEN POINT                                     
12.      RESOURCES OF FINANCE                           
13.      INTEREST CHART                                       
14.      DEPRECIATION CHART                                   
15.      CASH FLOW STATEMENT                                   
16.      PROJECTED BALANCE SHEET