PROJECT REPORT FOR – MANUFACTURING A.C MOTORS

MANUFACTURING A.C MOTORS

 

  1. INTRODUCTION:

 

Torque motors are engineered to deliver high starting torque with a distinctive sloping characteristic—producing maximum torque at zero speed, which gradually decreases as speed increases. This design ensures stable performance across a wide speed range, particularly in low-speed operations or during locked rotor conditions. The torque output in a three-phase torque motor depends on three primary factors: the magnitude of the rotor current, the interaction between the magnetic flux and the rotor (responsible for generating electromotive force), and the power factor of the rotor itself. At Sweet Crumbs Motors, we plan to produce a diverse range of products including Single Phase and Three Phase Motors, Torque Motors, and Flame Proof Motors to cater to various industrial and commercial applications.

 

Electricity is an integral part of our modern lives, influencing every aspect of daily routines and technological advancement. From air conditioners and ceiling fans to computers and communication devices, we rely on electricity to function seamlessly. It’s evident that electrical equipment is indispensable in every corner of our world. Among these, the motor stands out as a revolutionary innovation that has propelled both domestic and industrial progress. Compared to DC motors, AC motors are preferred in a multitude of applications for their efficiency, versatility, and practical benefits. From household water pumps to the maneuvering arms of industrial robots, AC motors play a pivotal role in modern life. Their widespread adoption can be attributed to their adaptability, variety, and ability to meet diverse demands. To fully appreciate their potential and select the right type of motor for specific needs, it’s essential to understand the various classifications and functionalities of AC motors.

 

  1. PRODUCT & ITS APPLICATION:

 

Classification Based On Principle of Operation: 

(a) Synchronous Motors: 1. Plain 2. Super 

(b) Asynchronous Motors: 

1. Induction Motors: (a) Squirrel Cage (b) Slip-Ring (external resistance). 

2. Commutator Motors: (a) Series (b) Compensated (c) Shunt (d) Repulsion (e) Repulsion-start induction (f) Repulsion induction 

Classification Based on Type of Current: 

1. Single Phase 2. Three Phase.

Classification Based On Speed of Operation: 

1. Constant Speed. 2. Variable Speed. 3. Adjustable Speed.

Classification Based On Structural Features: 

1. Open 2. Enclosed. 3. Semi-enclosed. 4. Ventilated. 5. Pipe-ventilated. 6. Riveted frame-eye.

 

1. Synchronous Motors and Their Applications:
Synchronous motors are characterized by their ability to rotate at a constant speed that is synchronized with the frequency of the stator current—thereby exhibiting no slip relative to the stator field. These motors are integral to applications requiring precise speed regulation and high power factor correction. Beyond traditional uses in industrial drives, synchronous motors are increasingly adopted in renewable energy integration as synchronous condensers, improving grid stability by providing reactive power support. They also serve critical roles in precision positioning systems, robotics, and stepper motor configurations that enable accurate control in automation and semiconductor manufacturing.


2. Asynchronous Motors and Their Applications:
Asynchronous (induction) motors remain the workhorses of the industrial sector, powering everything from water pumps in residential settings to heavy-duty equipment in process industries. Their versatility, ruggedness, and cost-effectiveness make them ideal for variable load conditions, such as those found in HVAC systems, fans, conveyor belts, and compressors. Recent developments in variable frequency drives (VFDs) have significantly enhanced their efficiency and controllability, making asynchronous motors essential in modern energy-saving initiatives, especially in smart manufacturing and Industry 4.0 environments.


3. Single and Three Phase Motors and Their Uses:
A.C. motors are categorized based on power supply: single-phase motors are predominantly utilized in low-power, domestic applications like household appliances, ceiling fans, and small workshop tools. Three-phase motors, on the other hand, are the backbone of industrial operations, driving high-power systems like compressors, large HVAC units, irrigation systems, and conveyor systems. Modern industrial automation trends have accelerated the adoption of three-phase motors in combination with VFDs to optimize energy consumption and process efficiency.


4. Constant, Variable, and Adjustable Speed Motors:
The adaptability of A.C. motors in speed control applications is a key factor in their widespread industrial use. Fixed-speed motors are essential in operations like air compressors, where consistent output is required. Multi-speed motors, achieved through pole-changing designs, offer flexible speed options for marine applications and cooling water pumps. The advent of digital controls and VFDs has revolutionized adjustable speed motor technology, enabling continuous speed modulation tailored to real-time demand. This is particularly relevant in maritime cargo pumps, process industries, and smart HVAC systems, where efficiency and operational precision are paramount.


5. Specialty-Structured Motors:
Modern industries often demand motors designed with specialized enclosures and configurations to meet safety and environmental requirements. For instance, motors operating in hazardous environments—such as oil refineries or chemical plants—are equipped with flameproof or explosion-proof casings to prevent external ignition. Similarly, motors designed for outdoor or harsh conditions feature totally enclosed fan-cooled (TEFC) enclosures or weatherproof designs to withstand adverse climates, as seen in hydroelectric and offshore facilities. The trend towards sustainable and safe operations has spurred innovation in motor structures, ensuring compliance with stringent safety standards while maintaining reliability and performance.

 

  1. DESIRED QUALIFICATIONS FOR PROMOTER:

 

Graduate in any discipline.

 

 

 

  1. INDUSTRY LOOK OUT AND TRENDS

 

The global electric AC motors market continues its robust expansion, driven by rapid advancements in industrial automation, energy efficiency initiatives, and the transition toward renewable energy. As of 2023, the market size exceeds USD 120 billion and is projected to grow at a CAGR of approximately 7% through 2030. AC motors are indispensable components in HVAC systems—critical for maintaining environmental controls in both residential and commercial buildings—and in industrial equipment like conveyors, cranes, and production machinery. The increasing adoption of smart factories and Industry 4.0 solutions is further fueling demand for advanced AC motor systems, particularly in regions focusing on sustainable energy and digital transformation.

The HVAC segment, in particular, is experiencing significant growth as climate control becomes a global priority. With construction booms in Asia-Pacific and the Middle East, HVAC-integrated AC motors are seeing substantial investment. Additionally, the proliferation of electric vehicles (EVs) and renewable energy projects is opening new avenues for AC motor manufacturers, especially for those offering variable speed and high-efficiency solutions.

 

  1. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

 

The global electric motor market is estimated to surpass USD 150 billion by 2030, driven by rising demand across commercial, industrial, and residential sectors. Applications range from elevators and fans to compressors, pumps, and renewable energy systems. Modern electric motors offer high endurance against voltage fluctuations, reduced maintenance, low energy consumption, and extended service life—critical factors in reducing total cost of ownership and environmental impact.

Recent market intelligence indicates that low voltage motors account for a significant share, with more than 60 million units shipped annually. Revenues have shown a steady growth trajectory, reflecting industrial upgrades, retrofits, and the ongoing shift towards smart, connected equipment. Factors such as stringent environmental regulations, increasing fuel costs, and the global push for electrification are accelerating the adoption of high-efficiency electric motors in areas like water treatment, mining, and the oil & gas sector.

To capitalize on this potential, manufacturers should emphasize advanced motor technologies—such as variable frequency drives (VFDs) and smart motor controllers—positioning them as solutions that align with sustainability and digital transformation strategies. Partnerships with system integrators and OEMs can strengthen market reach, while value-added services like predictive maintenance and energy audits enhance customer relationships and profitability.

 

 

  1. RAW MATERIAL REQUIREMENTS:

 

Key raw materials for AC motor manufacturing include:

  • Silicon Steel: Essential for laminations that reduce energy losses. Major suppliers include Essar Steel (Hazira, Gujarat) and Panchmahal Steel Ltd. (Gujarat).

  • Copper: Used for windings and rotor bars. Primary sources are Hindustan Copper Ltd. (Khetri, Rajasthan) and Sterlite Industries (Thoothukudi, Tamil Nadu).

  • Aluminum: Often used as an alternative to copper in rotor construction and housing. Notable suppliers are Bharat Aluminum Company (Odisha) and Hindustan Aluminum Company (Kerala).

Procurement strategies should focus on long-term contracts and sustainability initiatives to mitigate supply chain risks and price volatility.

 

  1. MANUFACTURING PROCESS:

 

Rotor Assembly

The rotor is the moving component in an electric motor, converting electrical energy into mechanical power. Typically, rotors incorporate conductors—such as copper or aluminum bars—embedded in a laminated iron core. These conductors interact with the magnetic field of the stator, producing the rotational force. In advanced designs, rotors may integrate permanent magnets for enhanced performance in variable speed applications.

Bearings

Bearings support the rotor shaft, enabling smooth rotation while managing mechanical loads. Precision-engineered bearings are critical for ensuring reliability and reducing maintenance downtime in high-demand industrial settings.

Stator Construction

The stator, the stationary part of the electromagnetic circuit, comprises windings or permanent magnets encased in a laminated iron core. The use of laminations minimizes eddy current losses, thereby improving efficiency and reducing heat generation.

Air Gap Optimization

The air gap—the small space between the rotor and stator—directly influences motor efficiency and power factor. Minimizing this gap enhances magnetic coupling, although it requires precise engineering to avoid mechanical interference, noise, and potential wear.

Windings

Windings are typically formed from insulated copper or aluminum wires arranged in coils. When energized, they generate a rotating magnetic field that interacts with the rotor. Modern winding techniques and insulation materials have advanced to support higher power densities and improved thermal performance.

Pole Configurations

AC motors can employ either salient-pole or non-salient-pole configurations. Salient-pole machines use concentrated windings around individual poles, while round-rotor (non-salient) machines distribute windings across slots in the rotor or stator. Additionally, shaded-pole designs provide phase shifting for specific applications.

Conductors

Depending on application requirements, conductors may use thicker metal bars (copper or aluminum) for increased current-carrying capacity. These are commonly employed in high-torque applications, powered by electromagnetic induction, making them ideal for industrial use.

 

  1. MANPOWER REQUIREMENT:

 

The enterprise requires 41 employees as detailed below:

 

 

 

 

 

Sr. No.

Designation of Employees

Salary Per Person

Monthly Salary ₹

Year-1

Year-2

Year-3

Year-4

Year-5

1

Production Manager

18,000

18000

1

1

1

1

1

2

Operators

12,000

60000

5

5

5

5

5

3

Helpers

10,000

150000

15

15

15

15

15

4

Admin Manager

15,000

30000

2

2

2

2

2

5

Accounts/Stores Assistant

12,500

50000

4

4

4

4

4

6

Office Boy

9,000

80000

5

5

5

5

5

 

Total

 

458000

41

41

41

41

41

 

  1. IMPLEMENTATION SCHEDULE:

 

The project can be implemented in 4 months’ time as detailed below:

 

Sr. No.

Activity

Time Required

(in months)

1

Acquisition of premises

1.00

2

Construction (if applicable)

1.00

3

Procurement & installation of Plant & Machinery

2.00

4

Arrangement of Finance

2.00

5

Recruitment of required manpower

1.00

 

Total time required (some activities shall run concurrently)

4.00

 

 

 

 

 

 

 

 

 

 

  1. COST OF PROJECT:

 

The project shall cost ₹ 186.20 Lacs as detailed below:

          

Sr. No.

Particulars

₹ in Lacs

1

Land 1500 sq. mtr@ 1000

15.00

2

Building

28.00

3

Plant & Machinery

82.00

4

Furniture, Electrical Installations

5.00

5

Other Assets including Preliminary / Pre-operative expenses

8.20

6

Working Capital

48.00

 

Total

186.20

 

  1. MEANS OF FINANCE:

 

Bank term loans are assumed @ 75 % of fixed assets. 

 

Sr. No.

Particulars

₹ in Lacs

1

Promoter's contribution

46.55

2

Bank Finance

139.65

 

Total

186.20

 

  1. WORKING CAPITAL CALCULATION:

 

Sr. No.

Particulars

Gross Amt

Margin %

Margin Amt

Bank Finance

1

Inventories

24.00

0.25

6.00

18.00

2

Receivables

12.00

0.25

3.00

9.00

3

Overheads

12.00

100%

12.00

0.00

4

Creditors

 

0.00

0.00

 

Total

48.00

 

21.00

27.00

  1. LIST OF MACHINERY REQUIRED: 

 

The main Plant and machineries required are : Centre Lathe , Radial drill Machine, Bench Drill Machine, Shaper Stroke, Cylindrical Grinder C.D. Hydraulic Press, Hand Press,  Double ended Grinder, Hacksaw Machine, Balancing Machine, Coil Winding Machine ,Hand Shear ,Air Compressor with Accessories, Oxygen Acyteline Cylinder with accessories. 

 

A detail of important machinery is given below: Power Requirement: 500 HP

 

Sr. No.

Particulars

UOM

Qtty

Rate (₹)

Value

(₹ in Lacs)

 

Plant & Machinery / equipments

 

 

 

 

a)

Main Machinery

 

 

 

 

i.

Rotor plant

NO

1

22.00

22.00

ii.

Bearing plant

NO

1

18.00

18.00

iii.

Starter and other parts plant

NO

1

13.00

13.00

b)

Ancillary machinery

L.S.

1

11.00

11.00

i.

Testing laboratory

NO

1

7.00

7.00

ii.

Installation, Electrification , taxes and transportation.

L.S.

1

11.00

11.00

 

sub-total Plant & Machinery

 

 

 

82.00

 

Furniture / Electrical installations

 

 

 

 

a)

Office furniture

LS

1

200000

2.00

b)

Stores Almirah

LS

1

100000

1.00

c)

Computer & Printer

 

L. S.

200000

2.00

 

sub total

 

 

 

5.00

 

Other Assets

 

 

 

 

a)

preliminary and preoperative

 

 

 

8.20

 

sub-total Other Assets

 

 

 

8.20

 

Total

 

 

 

95.20

All the machines and equipment are available from local manufacturers. The entrepreneur needs to ensure proper selection of product mix and proper type of machines and tooling to have modern and flexible designs. It may be worthwhile to look at reconditioned imported machines, dies and tooling. Some of the machinery and dies and tooling suppliers are listed here below:

 


 

  1. PROFITABILITY CALCULATIONS:

 

Sr. No.

Particulars

UOM

Year-1

Year-2

Year-3

Year-4

Year-5

1

Capacity Utilization

%

60%

70%

80%

90%

100%

2

Sales

₹. In Lacs

144.00

168.00

192.00

216.00

240.00

3

Raw Materials & Other direct inputs

₹. In Lacs

114.00

133.00

152.00

171.00

190.00

4

Gross Margin

₹. In Lacs

30.00

35.00

40.00

45.00

50.00

5

Overheads except interest

₹. In Lacs

12.48

13.26

14.82

15.29

15.60

6

Interest

₹. In Lacs

13.97

13.97

9.31

6.98

5.59

7

Depreciation

₹. In Lacs

57.40

41.00

28.70

20.50

18.45

8

Net Profit before tax

₹. In Lacs

-53.85

-33.23

-12.83

2.23

10.36

 

The basis of profitability calculation:

The growth of selling capacity will be increased 10% per year. (This is assumed by various analysis and study, it can be increased according to the selling strategy.) 

 

Energy Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs. 65 per litre.  The depreciation of plant is taken at 10-12 % and Interest costs are taken at 14 -15 % depending on type of industry.

 

  1. BREAKEVEN ANALYSIS:

 

The project shall reach cash break-even at 42.37 % of projected capacity as detailed below:

 

Sr. No.

Particulars

UOM

Value

1

Sales at full capacity

₹. In Lacs

240.00

2

Variable costs

₹. In Lacs

190.00

3

Fixed costs incl. interest

₹. In Lacs

21.19

4

BEP = FC/(SR-VC) x 100  =

% of capacity

42.37%

  1. STATUTORY / GOVERNMENT APPROVALS

 

As per the allocation of business rules under the Constitution, labour is in the concurrent list of subjects. It is dealt with by the MOLE at the Central and Departments of Labour under State Governments in respective States / UTs. 

 

Further, other Ministries of the Government of India have also enacted certain statutes relating to safety aspects of substances, equipment, operations etc. Some of the statutes applicable in the manufacturing sector are discussed below:

 

The Manufacture, Storage and Import of Hazardous Electronic Rules (MSIHC), 1989

 

The Manufacture, Storage and Import of Hazardous Chemicals (MSIHC) Rules, 1989, notified under the Environment (Protection) Act, 1986, establish a regulatory framework for the safe management of hazardous chemicals in India. These rules apply to industries handling specific hazardous substances—common in the electrical equipment manufacturing sector, where chemicals are used in processes like insulation, coatings, and component manufacturing.

The MSIHC Rules mandate industries to:
✅ Notify the authorities about the location and nature of the site handling hazardous chemicals.
✅ Conduct comprehensive hazard identification and risk assessment to pinpoint major accident hazards.
✅ Implement preventive and control measures to reduce the risk of major accidents.
✅ Prepare and submit a detailed Safety Report and develop an On-Site Emergency Plan to ensure readiness for potential emergencies.
✅ Notify and investigate any major accidents to prevent recurrence.
✅ Disseminate safety information to stakeholders, including local communities and regulatory agencies, to foster transparency and risk awareness.

These rules are overseen by the Ministry of Environment, Forest and Climate Change (MoEFCC) but are enforced at the state level by the Inspectorates of Factories within each State or Union Territory. Entrepreneurs planning to establish or expand operations involving hazardous chemicals should liaise with the State Pollution Control Board (SPCB) for compliance assistance and obtain necessary clearances.

By adhering to these regulations, manufacturers in the electrical industry can ensure workplace safety, environmental protection, and compliance with national laws, thereby building trust with stakeholders and safeguarding their operations.

 

  1. BACKWARD AND FORWARD INTEGRATIONS

 

In the dynamic landscape of the electrical industry, both backward and forward integration strategies are pivotal for achieving competitive advantage, operational resilience, and enhanced profitability. Backward integration involves expanding operations to include control over raw material supply chains, reducing reliance on external vendors, and mitigating risks associated with fluctuating material costs and supply disruptions. For instance, an electrical motor manufacturer might invest in or partner with steel, copper, or aluminum producers to ensure a stable and cost-effective supply of key inputs. This strategy is especially relevant given recent global supply chain challenges and the push for local sourcing to comply with environmental, social, and governance (ESG) standards.

 

On the other hand, forward integration entails extending the company’s reach toward the customer by acquiring or developing distribution networks, establishing service centers, or even entering the retail or after-sales market. For electrical equipment manufacturers, forward integration might include setting up dedicated distribution channels, authorized service centers, or even smart monitoring and maintenance services that provide real-time performance data to customers. This not only strengthens brand loyalty but also opens up additional revenue streams through value-added services and extended product life cycles.

 

Both integration strategies directly impact the bottom line by optimizing supply chain efficiencies, reducing costs, and enhancing market control. Backward integration shields the company from supplier power and price volatility, while forward integration fortifies relationships with end-users and reduces dependence on third-party distributors. In today’s market—marked by heightened competition and rapidly evolving customer expectations—these strategies are critical for maintaining a sustainable and scalable business model. Implementing them effectively can transform an electrical industry player into a vertically integrated powerhouse, equipped to navigate complex global markets with agility and confidence.

 

  1. TRAINING CENTERS AND COURSES

 

There is no such training required to start this business but, basic Electrical or IC bachelor’s degree is plus point for enterpriser. Promoter may train their employees in such specialized institutions to grow up the business. There are few specialised Institutes provide degree certification in chemical Technology, few most famous and authenticate Institutions are as follows:  

 



 

Entrepreneurship program helps to run business successfully is also available from Institutes like Entrepreneurship Development Institute of India (EDII) and its affiliates all over India.

 

 

Disclaimer: 

Only few machine manufacturers are mentioned in the profile, although many machine manufacturers are available in the market. The addresses given for machinery manufacturers have been taken from reliable sources, to the best of knowledge and contacts.  However, no responsibility is admitted, in case any inadvertent error or incorrectness is noticed therein.  Further the same have been given by way of information only and do not carry any recommendation.



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