Professional Documents
Culture Documents
PRODUCT CODE
: 33161700
PRODUCTION CAPACITY
Value
: 1,500 MT
: Rs. 7,05,00,000/-
: June, 2014
PREPARED BY
: Sh. V. M. Jha
Deputy Director (Metallurgy)
1. INTRODUCTION
This scheme covers grey cast iron castings of Heavy Mass upto 1.5 MT.
For Example:
1. Roller casting for sugar mills
2. Rack and gear boxes for General Engg. works
3. Ingot moulds for Mini-Steel Plants
2. MARKET POTENTIAL
The market potential of heavy grey iron castings is good and expected to be
bright in future. These castings are required by Sugar Mills, General Engineering
Works and Mini-Steel Plants. The demand for such castings is increasing
continuously due to rapid industrialization.
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The project profile has been prepared on the basis of single shift of 8 hrs. a
day and 25 days in a month at 75% efficiency.
ii.
It is presumed that in the first year, the capacity utilization will be 70%
followed by 85% in the next year and 100% in the subsequent year.
iii.
The rates quoted in respect of salaries and wages for skilled workers and
others are on the basis of minimum rates in the State.
iv.
Interest rate for the fixed and working capital has been taken @ 14% on an
average whether financed by Bankers or Financial Institutions.
v.
The margin money required is minimum 25% of the total capital investment.
vi.
The rental value for the accommodation of office, workshop and other
covered area has been taken @ Rs. 40 per sq. mtr.
vii.
The rate quoted in respect of machinery, equipment and raw materials are
those prevailing at the time of preparation of the project profile and are likely
to vary from place to place and supplier to supplier. When a tailor-made
project profile is prepared, necessary changes are to be made.
viii.
The payback period may be 5 years after the initial gestation period.
ix.
4. IMPLEMENTATION SCHEDULE
The implementation of the project includes various jobs/exercises such as
procurement of technical knowhow, transfer of technology, market surveys and tieups, preparation of project report, selection of site, registration, financing of project,
procurement of machinery and raw materials etc., recruitment of staff,
erection/commissioning of machines, trial production and commercial production
etc. In order to efficiently and successfully implement the project in the shortest
period, the slack period is curtailed to minimum possible and as far as possible
simultaneous exercises are carried out. In view of above, a CPM-PERT chart has
been illustrated below, according to which a minimum period of 227 days is
involved in finally starting the project on commercial basis. By the following this
process a time period of 82 days can be saved.
Details of Activities
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Metallurgy Division
C.P.M.
Activity
12
Days
15
Activity
12
Days
15
34
15
34
15
45
56
67
7 10
7
70
45
30
23
45
56
67
7
7
70
45
10 11
11 12
30
15
68
69
30
30
8 10
15
7 10
30
10 11
11 12
30
15
309
Total
227
Particulars of Activity
Procurement of Tech. knowhow/
transfer of technology
Market Survey, tie up and obtaining
quotations
Selection of site
Preparation of Project report
Registration and financing
Placement of orders for machinery and
receipt of machines
Recruitment of staff and training
Addition/Alteration in rental
premises
Procurement of raw material/bought
out components
Erection, electrification and
commissioning
Trial Production
Commercial Production
5. TECHNICAL ASPECTS
5.1. Process of Manufacturing
Grey cast Iron castings are produced by melting pig iron and C.I. scrap in
cupola furnace. The molten metal is poured in dry sand moulds to avoid the mould
dilution. Cores are made of silicon sands dried and coated with graphite paste.
Graphite paste is prepared from graphite powder and Bentonite mixed in water. The
cores are dried in coal fired chamber properly before use in mould. Molten metal is
poured in moulds cavity with the help of a ladle. Castings are taken out of the
mould after getting cooled. After breaking the runner and risers castings are fettled
properly.
30 HP
15 HP
45 HP
The industry involves pollution to some extent for which State Pollution
Control Board has to be approached.
Minimum height of shed will be maintained with exhaust fans installed for
removing decongestion, proper ventilation, removal of cokes, fumes, etc.
ii.
Layout of the unit should be in such a way that no back tracking of material is
there.
iii.
iv.
The entire transmission belt will be tightened before starting the work
wherever applicable.
v.
Fluorescent tube with electronic chokes may be used for energy saving.
Further recently developed compact fluorescent lights called CFLEB of 10 15
watts Philips/Glaux made may be used for energy saving and decoration.
These self-ballasted fluorescent lamps are high efficient replacement for
ordinary bulbs. For same light output, CFLEBs consume about one-fifth the
power consumed by ordinary bulbs, thereby saving a lot of energy. The
savings get further multiplied when CFLEBs are used in air-conditioned
areas, since the saving of energy by using CFLEBs also corresponds to less
heat dissipation reducing load on air conditioners. The life of CFLEBs is about
8,000/10,000 hours i.e. about 10 times that of ordinary bulb.
The typical payback period in terms of savings of energy bills and cost of
ordinary lamps is about 6 months operation. Unlike ordinary bulbs, these
CFLEBs provide choice of three colours designated A, B and C, to suit
individual requirement.
vi.
As far as possible Solar energy and daylight will be used keeping all the other
lights off.
vii.
As far as possible, inductive load of motor will be reduced and high power
factor will be used with the aid of capacitors of appropriate sizes.
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Metallurgy Division
6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building: 600 m2 on rent @ Rs. 40 per m2
Description
Ind./Imp.
Qty.
Price (Rs.)
Ind.
1 No.
5,00,000
2.
Ind.
1 No.
5,00,000
3.
Ind.
1 No.
1,00,000
4.
Ind.
1 No.
80,000
5.
Ind.
2 Nos.
2,00,000
6.
Ind.
2 Nos.
1,50,000
7.
Ind.
2 Nos.
30,000
8.
Ind.
2 Nos.
1,60,000
9.
Ind.
2 Nos.
80,000
10.
Ind.
1 No.
35,000
11.
Ind.
1 No.
90,000
12.
Ind.
LS
70,000
13.
Fettling Equipments
Ind.
LS
50,000
Ind.
LS
1,00,000
15.
Ind.
LS
1,00,000
1,50,000
60,000
Total
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24,55,000
(e)
2,50,000
2,45,500
4,00,000
1,50,000
2,00,000
Rs. 37,00,500
Designation
No
Rate
Total (Rs.)
1
1
2
1
2
1
2
25,000
20,000
15,000
12,000
12,000
10,000
9,000
25,000
20,000
30,000
12,000
24,000
10,000
18,000
(b) Technical
8
9
10
Skilled worker
Semi-skilled worker
Unskilled worker
6
6
8
12,000
10,000
8,500
Total
Perquisites @ 15% of salary
72,000
60,000
68,000
3,39,000
50,850
Total
3,89,850
Particulars
Pig Iron (Foundry Grade)
Cast Iron Scrap
Coke
Foundry Chemicals & Various
Consumable like Fireclay, Firebricks, Steam Coal, Graphite,
Coal Dust, Bentonite, Silica Sand,
River Sand, Ferrosilicon, etc.
Qty.
100 MT
50 MT
30 MT
LS
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Rate (Rs.)
25,000
22,000
20,000
Amount (Rs.)
25,00,000
11,00,000
6,00,000
2,00,000
Total
44,00,000
Metallurgy Division
6.2.3. Utilities
Power 10,000 kWH @ Rs. 9/- per kWH
Water
Rs. 90,000
Rs. 3,000
Total
Rs. 93,000
Description
Value (Rs.)
24,000
1,000
Advertisement/publicity
3,000
2,000
Telephone
2,000
Transportation
5,000
Consumable
3,000
Sales Expenses
3,000
Insurance
3,000
10
Taxes
3,000
11
Misc. Expenses
3,000
Total
52,000
Rs. 49,34,850
Rs. 1,48,04,550
Rs. 37,00,500
Rs. 1,48,04,550
Total
Rs. 1,85,05,050
Machinery Utilisation
It is expected that during the first year machine utilisation will be 70% and
during second year 85% and 100% in subsequent years.
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7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
S.No.
Description
Amount (Rs.)
5,92,18,200
1,75,500
1,40,000
1,00,000
30,000
25,90,707
Total
6,22,54,407
Item
Heavy Castings up to
1.5 MT
Qty.
Rate (Rs.)
Value (Rs.)
1500 MT
47,000
7,05,00,000
Total 7,05,00,000
7.3. Net Profit (per annum)
=
Rs. 82,45,593/-
= 11.70 %
= 44.56 %
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Metallurgy Division
(Rs.)
Rent
2,88,000
Total Depreciation
4,45,500
Total Interest
25,90,707
1,08,000
18,71,280
91,200
Total
53,94,687
B.E.P
=
Fixed Cost
X 100
Fixed Cost + Net Profit
= 39.55%
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