PROJECT REPORT

Of

LUBRICANT SPRAY

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding lubricant spray Manufacturing unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : [email protected]
Contact : +91 7526000333, 444, 555
 PROJECT AT GLANCE

1 Name of Proprietor/Director XXXXXXXX

2 Firm Name XXXXXXXX
3 Registered Address XXXXXXXX
4 Nature of Activity XXXXXXXX
5 Category of Applicant XXXXXXXX
6 Location of Unit XXXXXXXX
7 Cost of Project 19.71 Rs. In Lakhs
8 Means of Finance
i) Own Contribution 1.97 Rs. In Lakhs
ii) Term Loan 13.95 Rs. In Lakhs
iii) Working Capital 3.79 Rs. In Lakhs
9 Debt Service Coverage Ratio 3.42
10 Break Even Point 18%
11 Power Requiremnet 50 KW
12 Employment 10 Persons
Oils & chemicals, cans, ink,
13 Major Raw Materials valves, nozzles,caps and
packing material
14 Details of Cost of Project & Means of Finance
Cost of Project Amount in Lacs
Particulars Amount
Land and building Owned/Leased
Plant & Machinery 14.00
Furniture & Fixture -
Other Misc Assets 1.50
Working Capital Requirement 4.21
Total 19.71
Means of Finance
Particulars Amount
Own Contribution 1.97
Term Loan 13.95
Working capital Loan 3.79
Total 19.71
 1. INTRODUCTION

Friction is the force that opposes movement on two surfaces. At the same time, wear is that change
that takes place on a surface due to the removal of abrasive debris as a result of mechanical contact
and a chemical-physical nature due to the heat generated by friction. A lubricant is a substance
that helps to reduce friction between surfaces in mutual contact, which ultimately reduces the heat
generated when the surfaces move. It may also have the function of transmitting forces,
transporting foreign particles, or heating or cooling the surfaces. It is also called penetrating oil,
most oil spray lubricants are made from crude oil, but some are made from vegetable oil. Their
low surface tension makes them best for penetrating deep into mechanisms and into the threads of
rusted bolts and nuts. After spreading lubricant goes on thick and stays where you spray, making
it ideal for use on vertical surfaces and offers non-fling for moving parts such as gears, bearings,
cables, chains, rollers, and more. Once applied, it withstands temperatures ranging from -100°F to
500°F. Spray Lubricant provides high-performance lubrication and corrosion protection, in a
quick-drying no-mess formula. It's safe for use on metal, rubber, vinyl, wood, and much more.
Lubricant sprays are used for Doors, locks, hinges, belts, windows, latches, zippers, switches,
fishing equipment, tools, chains, belts, sports equipment, lawn equipment, valves, linkages,
pulleys, fans, and more. Most silicone sprays contain just around 1.5% silicone grease. The upside
of silicone spray is that it repulses water and performs well in outrageous temperatures. Thin and
clear, it's likewise great when tidiness counts. Notwithstanding metal, silicone is often safe to use
on rubber, wood, nylon, vinyl, and plastic parts. Silicone ought not to be utilized where pressure
or load-bearing is involved. Dry spray lubricants are mostly graphite. Their solvents evaporate
rapidly. Dry lubricants are good for interior hinges, interior locks, drawer slides, and toolbox
drawers. The primary benefits of dry lubricants are that there is no oily mess and that dust and dirt
don’t stick to them. Dry lubricants don't dislodge water, and they wear off decently fast under load,
making it important to reapply them more oftentimes than other lubricants. Lithium grease is a
combination of lithium hydroxide and oils; lithium grease is great for metal-to-metal contact,
particularly when pressure or a weighty load is involved. It works incredibly in spots, for example,
the table saw wrenches and the metal hinges on garage doors.

2 PRODUCT DESCRIPTION

2.1 PRODUCT USES

The user sectors of Lubricant sprays are industries for home appliances etc. Lubricant sprays are
used for lubricating car door hinges, locks and levers, seatbelts and seatbelt guides, rubber seals
and parts, sunroof rails, seat tracks, and other moving parts, lubricating and protecting blades,
knives, dies, and cutting surfaces. Leather gear can also be softened with a spray lubricant. Many
manual tools with moving parts (pruning snips) can be lubricated to increase tool life and ease of
use. Lubricant spray also helps protect these tools from rust and corrosion. Spraying the sliding
door tracks with silicone help keep the door moving easily and smoothly.

2.2 MANUFACTURING PROCESS

This process can be broken down into the following steps-
Raw material procurement
Production Process
Testing
Raw Material Procurement
To ensure complete quality control, all raw materials are checked strictly as per established quality
standards and requirements. Individual supplier assessment and supplier rating are done depending
upon the rejection levels at the incoming quality control stage. After quality control, sorting of raw
material will be done. In the sorting procedure, the different types of materials will be sorted out
and they will be stored in a neat storage area for further processing.

Production process
1) Chemical formulation: The formulation of a lubricant is made up of base oils and
additives, which, when combined, determine the behavior of the mixture during product
use, both in terms of performance and durability. Each lubricant has a different set of
characteristics based on its formulation during manufacturing that determines its
consistency, viscosity, ability to prevent friction, reduce wear and tear, protect against rust,
corrosion, and oxidation, maintain mobility, and stop water and other contaminants from
coming into contact with the equipment. For lithium grease lubricant; lithium hydroxide
and oils are mixed. lithium grease is ideal for metal-to-metal contact, especially when
pressure or a heavy load is involved. For silicon lubricant, silicon solvent and oil can be
mixed. For dry lubricant, graphite can be used.
2) Liquid filling: The empty containers or aluminum cans travel along the production line
and bespoke the formulated stored liquid and added to the can. With liquid filling
machines, liquids can be easily and efficiently packed into containers without much
wastage, and that is too faster. In this method penetrating oils can be filled in cans. This
process is done by a liquid filling machine which can accomplish the huge liquid filling
tasks in industries very easily and fast therefore can replace the work of many human
beings who were to do the process in absence of these machines.

3) Valve inserting, Sealing/crimping, and Gas filling: The valve is then fitted to the can.
The turntable will choose valves automatically. Under the airpower, the valves will be
placed and pressed on the can tightly and then the crimping is done. Crimping is a
conjoining of two pieces of metal fitting with sections of rigid, flexible hose and tubing by
deforming one or both of them to hold each other and stick together. Then the machine will
inject propellant, under pressure, through the valve. Propellent may be in the form of
petroleum gas or compressed gas. Gas will be filled in cans with a gas filling machine.
Once filled, the cans are sent for testing.
4) Water bath QC: The classic test for checking the integrity of lubricant spray is the hot
water bath, where filled cans are immersed in water to verify if bubbles escape from the
containers. Instead of a water bath test, some manufacturers can also use a pressure tester.

5. Weight checking: Once tested for leaks, in this process weight of each can is checked to
ensure the correct fill. This is checked with the automatic weighing machine.
6. Spray head/nozzle pressing: In this step, the spray head or nozzle is pressed with a nozzle
pressing machine. After the actuator/nozzle is fitted, the date and the batch code will be
printed to ensure full traceability before the cap is applied.

7. Capping: After labeling, Capping is done and the product will be sent for packing.
 Testing
 Quality Control: Leak testing, weight testing, etc. will be tested.

3 PROJECT COMPONENTS

3.1 Land & Building

The land required for this manufacturing unit will be approx. around 2000 square feet. Land
Purchase and Building Civil Work Cost have not been considered as part of the cost of project. It
is expected that the premises will be on rental and approximate rentals assumed of the same will
be Rs.20,000 per month.
 Workshop Area- This area includes the setup and foundation space for all equipment’s,
work floor area, etc. Total workshop area is approx.1000 Sqft.

 Inventory Area- This area includes the storage space for all the raw materials and finished
goods. Total inventory area is approx. 500 Sqft.

 Office Area – This space includes staff working region, their accommodation space. Total
workshop area is approx. 300 Sqft. This may be considered above the ground floor.

 Parking Space, Electric Mounting Space, and Others. This could be approx. 200 Sqft.

Land and building requirement may vary depending on the size of project .

3.2 Plant & Machinery

 Lubricant Spray Manufacturing Plant: This automatic plant contains cans arranging
machine, rotary liquid filling machine, valve inserting machine, rotary sealing and gas
filling, automatic weight checker, water bath, nozzle presser, cap presser, inkjet printer,
packing table, etc.

1. Liquid filling, Valve supplying & sealing machine: The turntable will choose
valves automatically, and the valves will be sent to producing line from the pipe
productivity. Under the airpower, valves will be put and pressed on the can tightly.
This machine has good capping quality; it saves labor and increases working
efficiency.
2. Automatic crimping & gas filling machine are independent table devices. It has one
set of valve sealing heads and filling heads, also equipped with pressure boosters,
and a gas storage tank. Sealing heads have an automatic locking device to stabilize
 sealing size. This machine will not fill gas if there are no cans there in the filling
heads.
3. An automatic weighing machine comes with an advanced weighing sensor, PLC
controlling system, and low-voltage apparatus; the whole machine is fully
explosion-proof, and with the function such as an adjustable stepless motor, human-
computer dialogue interface, related fault, and waiting for feeding indicator, it
could detect the weight of each finished can and reject the unqualified can
automatically.

4. Automatic water bath leak tester: The machine pass the cans from the conveyor to
the main body by the explosion-proof motor driving the primary shaft and screw
can-divide device; the main shaft drives the hanging type sprocket to circulate cans
continuously into the water tank smoothly. After soaking 3-5min, the worker could
observe the soaking situation and to check whether it is leaking or not through the
inspection window, if the can is leaking, could take out it through the window;
those tested cans will be dried the residual moisture by blower and side wind; after
entering main machine body, the can could be dropped off by the drop-can system, and
then conveyed to the conveyor by outlet star wheel.
5. Automatic spray nozzle presser machine consists of nozzle head machine, spray
nozzle head presser and PLC programmed control, sort and conveyor of spray head,
self-compress of the spray head and aerosol cans. It is excellent in high speed, low
noise, and high automation.
6. Automatic cap presser machine consists of cap arranging machine, cap presser and
PLC programmed control, can finish sort and conveyor of the cap, self-compress
of cap and aerosol cans, It is excellence in high speed, low noise, and high
automation.
7. Automatic Clamping-type Ink-jet belt: With the explosion-proof motor, the main
sub-synchronous conveyor holds the can into the spray area, and prints on the can
bottom one by one. With adjustable conveying speed, it is very convenient to adjust
different diameter cans, cans will travel or print without any damage or fall during
printing, and they could be fixed at any position on the conveyo r.
 Machine Quantity Price

Lubricant spray making 1 10,00,000

Miscellaneous 1 4,00,000
TOTAL 14,00,000

Note: Total Machinery cost shall be Rs 14.00 lakhs (Approx.) excluding GST and
Transportation Cost.

4 LICENSE & APPROVALS

Basic registration required in this project:

 MSME Udyam registration

 GST registration

 NOC for fire safety board and from Pollution Control Board

 Trade License

 Factory License (Optional)

 BIS certification

 Choice of a Brand Name of the product and secure the name with Trademark if required .
 Projected Profitability

PROJECTED PROFITABILITY STATEMENT (in Lacs)

2nd 3rd 4th

PARTICULARS 1st year year year year 5th year
Capacity Utilisation % 25% 30% 35% 40% 45%
SALES
Gross Sale
Lubricant Spray 91.56 117.44 144.42 173.49 204.67

Total 91.56 117.44 144.42 173.49 204.67

COST OF SALES
Raw Material Consumed 61.50 77.40 94.50 114.00 135.00
Electricity Expenses 2.40 2.88 3.36 3.84 4.32
Depreciation 2.33 1.98 1.68 1.43 1.21
Wages & labour 7.08 8.50 10.87 13.05 14.62
Repair & maintenance 1.83 2.47 3.18 3.47 4.09
Packaging 0.73 1.41 1.73 2.08 2.46
Cost of Production 75.87 94.63 115.32 137.87 161.70
Add: Opening Stock - 1.77 2.21 2.69 3.22

Less: Closing Stock 1.77 2.21 2.69 3.22 3.77

Cost of Sales 74.10 94.19 114.84 137.34 161.14
GROSS PROFIT 17.46 23.25 29.58 36.15 43.53
19.07% 19.80% 20.48% 20.84% 21.27%
Salary to Staff 4.14 6.42 8.34 10.43 11.99
Interest on Term Loan 1.37 1.21 0.87 0.53 0.18
Interest on working Capital 0.42 0.42 0.42 0.42 0.42
Rent 2.40 2.76 3.17 3.65 4.20
Selling & Administrative Exp. 4.12 5.28 6.50 6.94 8.19
TOTAL 12.45 16.09 19.30 21.96 24.98
NET PROFIT 5.02 7.17 10.28 14.19 18.55
5.48% 6.10% 7.12% 8.18% 9.06%
Taxation 0.00 0.45 1.09 1.62 2.98
PROFIT (After Tax) 5.01 6.71 9.19 12.57 15.57
Projected Balance Sheet
(in
PROJECTED BALANCE SHEET Lacs)

2nd 3rd 4th

PARTICULARS 1st year year year year 5th year
Liabilities
Capital
Opening balance 3.48 6.10 9.19 12.46
Add:- Own Capital 1.97
Add:- Retained Profit 5.01 6.71 9.19 12.57 15.57
Less:- Drawings 3.50 4.10 6.10 9.30 12.40

Closing Balance 3.48 6.10 9.19 12.46 15.63

Term Loan 12.40 9.30 6.20 3.10 -
Working Capital Limit 3.79 3.79 3.79 3.79 3.79
Sundry Creditors 2.05 2.58 3.15 3.80 4.50
Provisions & Other Liability 0.40 0.48 0.58 0.80 0.96
TOTAL : 22.12 22.24 22.90 23.95 24.87
Assets
Fixed Assets ( Gross) 15.50 15.50 15.50 15.50 15.50
Gross Dep. 2.33 4.30 5.98 7.41 8.62
Net Fixed Assets 13.18 11.20 9.52 8.09 6.88

Current Assets
Sundry Debtors 3.05 3.91 4.81 5.78 6.82
Stock in Hand 3.21 4.01 4.90 5.88 6.92
Cash and Bank 0.19 0.12 0.17 0.19 0.15
Loans & Advances /Other Current Assets 2.50 3.00 3.50 4.00 4.10
TOTAL : 22.12 22.24 22.90 23.95 24.87
 Projected Cash Flow Statement

PROJECTED CASH FLOW STATEMENT (in Lacs)

1st 2nd 3rd 4th

PARTICULARS year year year year 5th year
SOURCES OF FUND
Own Margin 1.97
Net Profit 5.02 7.17 10.28 14.19 18.55
Depreciation & Exp. W/off 2.33 1.98 1.68 1.43 1.21
Increase in Cash Credit 3.79 - - - -
Increase In Term Loan 13.95 - - - -
Increase in Creditors 2.05 0.53 0.57 0.65 0.70
Increase in Provisions & Oth labilities 0.40 0.08 0.10 0.22 0.16
-
TOTAL : 29.50 9.75 12.62 16.49 20.62
APPLICATION OF FUND
Increase in Fixed Assets 15.50
Increase in Stock 3.21 0.81 0.88 0.98 1.05
Increase in Debtors 3.05 0.86 0.90 0.97 1.04
Repayment of Term Loan 1.55 3.10 3.10 3.10 3.10
Loans & Advances /Other Current
Assets 2.50 0.50 0.50 0.50 0.10
Drawings 3.50 4.10 6.10 9.30 12.40
Taxation 0.00 0.45 1.09 1.62 2.98
TOTAL : 29.31 9.82 12.57 16.47 20.66

Opening Cash & Bank Balance - 0.19 0.12 0.17 0.19

Add : Surplus 0.19 (0.07) 0.06 0.02 (0.04)
Closing Cash & Bank Balance 0.19 0.12 0.17 0.19 0.15
 DSCR

CALCULATION OF D.S.C.R

1st 2nd 3rd 4th 5th

PARTICULARS year year year year year

CASH ACCRUALS 7.34 8.69 10.87 14.00 16.78

Interest on Term Loan 1.37 1.21 0.87 0.53 0.18

Total 8.71 9.90 11.74 14.52 16.97

REPAYMENT

Instalment of Term Loan 1.55 3.10 3.10 3.10 3.10

Interest on Term Loan 1.37 1.21 0.87 0.53 0.18

Total 2.92 4.31 3.97 3.63 3.28

DEBT SERVICE COVERAGE

RATIO 2.98 2.30 2.96 4.01 5.17
AVERAGE D.S.C.R. 3.42
Repayment schedule

REPAYMENT SCHEDULE OF TERM LOAN

Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
1st Opening Balance

1st month - 13.95 13.95 - - 13.95

2nd month 13.95 - 13.95 0.13 - 13.95

3rd month 13.95 - 13.95 0.13 - 13.95

4th month 13.95 - 13.95 0.13 13.95

5th month 13.95 - 13.95 0.13 13.95

6th month 13.95 - 13.95 0.13 13.95

7th month 13.95 - 13.95 0.13 0.26 13.69

8th month 13.69 - 13.69 0.13 0.26 13.43

9th month 13.43 - 13.43 0.12 0.26 13.18

10th month 13.18 - 13.18 0.12 0.26 12.92

11th month 12.92 - 12.92 0.12 0.26 12.66

12th month 12.66 - 12.66 0.12 0.26 12.40

1.37 1.55
2nd Opening Balance

1st month 12.40 - 12.40 0.11 0.26 12.14

2nd month 12.14 - 12.14 0.11 0.26 11.88

3rd month 11.88 - 11.88 0.11 0.26 11.63

4th month 11.63 - 11.63 0.11 0.26 11.37

5th month 11.37 - 11.37 0.10 0.26 11.11

6th month 11.11 - 11.11 0.10 0.26 10.85

 7th month 10.85 - 10.85 0.10 0.26 10.59

8th month 10.59 - 10.59 0.10 0.26 10.33

9th month 10.33 - 10.33 0.09 0.26 10.08

10th month 10.08 - 10.08 0.09 0.26 9.82

11th month 9.82 - 9.82 0.09 0.26 9.56

12th month 9.56 - 9.56 0.09 0.26 9.30

1.21 3.10
3rd Opening Balance

1st month 9.30 - 9.30 0.09 0.26 9.04

2nd month 9.04 - 9.04 0.08 0.26 8.78

3rd month 8.78 - 8.78 0.08 0.26 8.53

4th month 8.53 - 8.53 0.08 0.26 8.27

5th month 8.27 - 8.27 0.08 0.26 8.01

6th month 8.01 - 8.01 0.07 0.26 7.75

7th month 7.75 - 7.75 0.07 0.26 7.49

8th month 7.49 - 7.49 0.07 0.26 7.23

9th month 7.23 - 7.23 0.07 0.26 6.98

10th month 6.98 - 6.98 0.06 0.26 6.72

11th month 6.72 - 6.72 0.06 0.26 6.46

12th month 6.46 - 6.46 0.06 0.26 6.20

0.87 3.10
4th Opening Balance

1st month 6.20 - 6.20 0.06 0.26 5.94

2nd month 5.94 - 5.94 0.05 0.26 5.68

3rd month 5.68 - 5.68 0.05 0.26 5.43

 4th month 5.43 - 5.43 0.05 0.26 5.17

5th month 5.17 - 5.17 0.05 0.26 4.91

6th month 4.91 - 4.91 0.04 0.26 4.65

7th month 4.65 - 4.65 0.04 0.26 4.39

8th month 4.39 - 4.39 0.04 0.26 4.13

9th month 4.13 - 4.13 0.04 0.26 3.88

10th month 3.88 - 3.88 0.04 0.26 3.62

11th month 3.62 - 3.62 0.03 0.26 3.36

12th month 3.36 - 3.36 0.03 0.26 3.10

0.53 3.10
5th Opening Balance

1st month 3.10 - 3.10 0.03 0.26 2.84

2nd month 2.84 - 2.84 0.03 0.26 2.58

3rd month 2.58 - 2.58 0.02 0.26 2.33

4th month 2.33 - 2.33 0.02 0.26 2.07

5th month 2.07 - 2.07 0.02 0.26 1.81

6th month 1.81 - 1.81 0.02 0.26 1.55

7th month 1.55 - 1.55 0.01 0.26 1.29

8th month 1.29 - 1.29 0.01 0.26 1.03
9th month 1.03 - 1.03 0.01 0.26 0.78
10th month 0.78 - 0.78 0.01 0.26 0.52
11th month 0.52 - 0.52 0.00 0.26 0.26
12th month 0.26 - 0.26 0.00 0.26 -
0.18 3.10
DOOR TO DOOR 60 MONTHS
MORATORIUM
PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
reflect the views of the industry which are drawn from various research material
sources from internet, experts, suppliers and various other sources. The actual
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considering specific requirement of the project, capacity and type of plant and
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intended for general guidance only and must not be considered a substitute for a
competent legal advice provided by a licensed industry professional. SAMADHAN
hereby disclaims any and all liability to any party for any direct, indirect, implied,
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