Manufacture of Domestic Air Conditioner - Split AC - Project Information

Air- conditioner provides temperature and  humidity control of air  within a specified
area. The split type air-conditioners are in demand now. The split type of A/c is installed in two parts, one in evaporative unit which is installed near the spaces to be air conditioned and second one is condensing unit which is installed away from the spaces to be air-conditioned. In this way, noise of compressor, flow of exhaust (generally hot) air are distanced from the places to be air-conditioned. Split type A/C are bing used in show rooms and other installations where space availabel is less and disturbance to occupants and passers-by is to be avoided.


Process of Manufacture: Procuring of various components like condenser coil, copper pipe, compressor, cabinet, frame, grills , switches etc Testing components : Assembly Charging of gas and Final testing .



Despite large companies and branded products a major share of marketing of ACs is held by smaller units. These units are generally able to assemble various components and sell  the ACs at competitive prices. The small assemblers are selling their products by personnel contact and getting repeated orders on the basis of performance and reputation. As the country's GDP is growing more and more people are able to buy ACs and demand is increasing.



KVIC Provides this project information. Details have to be found by enquiring with them.


Equipment required: Sheet Bending M/c, Sheet cutting M/c hand operated, Hand press, Electrical Portable Grinder, drilling rivetting, Vacuum pump for charging, Pressure Pump for testing,
Charging Panel, Acetylene, Oxygen Cylinders, torch, hose etc, Swaging, Flaring ,
Soldering tool and fixtures, Spot welding M/c, Clamp Meter (Digital), Painting Gun,
Compressor etc, Work Tables

Estimated Annual Production Capacity: 120

Land : Own (Assumed)
Factory shed :       400,000 can be rented also
Equipment :          151,000
Working Capital:  465,000.00

TOTAL PROJECT COST : 1,016,000.00








 Raw Material                     2,137,000.00
 Packing Material                    48,000.00
Salaries workers 3                 120,000
Salaries ( MANAGER-1) :    120,000.00

 :
Administrative Expenses : 75,000.00
Overheads : 73,000.00
 Miscellaneous Expenses :45,000.00
Depreciation : 35,100.00
Insurance : 5,510.00
Total Interest
Interest (As per the PLR)
a. C.E.Loan :   71,630.00
b. W.C. Loan:  60,450
 Total              132,080.00


Working Capital Requirement :  459,265
Fixed Cost:          317,140
Variable Cost:  2,438,450
 Total cost:       2,755,590




Projected Sales 3,100,000
GRoss Surplus -  344,410
Depreciation    -    35,100
Net Surplus -       309,310


http://www.kvic.org.in/pmegpwebsite/pmegpwebsite/kvic-regppmegp.in/commonprojectprofile/PROJECT%20PROFILE%20ON%20AIR%20CONDITIONER%20(SPLIT%20TYPES).pdf


http://www.kviconline.gov.in/pmegp/pmegpweb/docs/jsp/profileView.jsp


Assembly training kit
http://www.hft-education.com/downloads/datasheets/US/ACV520.pdf