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Product Code 21126, 21127 and 21131
QUALITY AND STANDARDS : IS 1886 : 1961
IS 712 : 1973
IS 1624 : 1974
PRODUCTION CAPACITY : Quantity : 9,000 M.T. (per annum)
Value : Rs. 2,02,50.000
MONTH AND YEAR
OF PREPARATION : January, 2003
INTRODUCTION
Burnt Lime also called as quick lime or unslaked lime is made out of lime stone deposits which are wide spread throughout the country. The burnt lime is extensively used as a mortar in the construction of building by mixing in with suitable proportion of sand and surkhee of burnt clay as aggregate. It is also used for white washing of houses and building. Iron and steel plants, and foundries use lime as a fluxing agent in considerable quantity. Some drugs and pharmaceuticals, paper industry pesticides formulations and other chemical processing industries are using the unslacked lime.
MARKET POTENTIAL
There is rapid development taking place in the construction of buildings in rural and urban areas housing development program and industrialization activities throughout the country, burnt lime has a good demand. The main application of lime, used as a mortar in the construction of building by mixing it in suitable ratio with sand and surkhee of burnt clay, white washing of house and building, iron and steel industries, fluxing agent in foundries, drugs paper and pharmaceuticals industries, some chemical industries are also using the lime as a chemical processing agent. The demand for this product is also increasing day-by-day. In the view of this, there is a very good scope for setting up some new units.
BASIS AND PRESUMPTIONS
i. The proposed unit will carry out lime calcinations about 30 Tonne/day (30 TPD), on single shifts basis, having 300 working days in a year.
ii. Annual expenses such as salary and wages other contingent expenses have been calculated for 12 months.
iii. It is expected that the unit will achieve its full capacity during the first year of operation itself.
iv. The wages proposed in this profile are per the prevailing wages practice. The staff and labour have been taken on the basis of minimum applicable.
v. Normal rate of interest of about 14% is considered both for recurring and non-recurring investment.
vi. Margin money is generally @10-25% and however it varies according to the location and the project and the rules of financial institutions.
vii. The normal operative period it estimated to be more than 15 years considering the present level Technology. The usual repayment period of loan is about three years.
viii. The term loan varies from one financial institution to another and general minimum gestation period is 6 months and it could be extended upto two years. Maximum period for repayment of loan would be less than four years including gestation period.
ix. The production capacity of the plant and machinery would be 60% in the first year, 70% in the second year and 80% in the third year respectively.
x. The land value and construction cost has been taken on average basis, as it varies from place to place.
xi. The cost of machinery and equipment as proposed in the project profile may vary from place to place consulting the local machinery suppliers and traders and varies from place to place at the time of preparation of this project.
IMPLEMENTATION SCHEDULE
Sl.No. Activity Period
Starting Completion
1. Survey, for collection of date in 0 to 2nd month
respect of demand, raw material, including
power, fuel, available of technology, pollution
control
2. Arrangement of margin money 2nd to 3rd month
3. Preparation of project document
and registration 2nd to 3rd month
4. Financial assistance 4th to 6th month
5. Selection of site and development of land 4th to 6th month
6. Clearance for pollution electricity, fuel
and water, tie up for availability 5th to 7th month
7. Construction/selection of machine
identification 6th to 7th month
8. Placement of order for machinery 6th to 9th month
9. Transportation and installation of
machinery and equipments 6th to 10th month
10. Selection of raw material and
replacement of orders 8th to 11th month
11. Receipt of raw material 9th to 11th month
12. Installation of machinery etc. 10th to 11th month
13. Trial production 12th month
TECHNICAL ASPECTS
Process of Manufacture
The limestone mined from quarry or rivers should be free from all defects and impurities, once washed and cleaned again for removal of dust particles. These stone blocks are crushed manually or by jaw crusher in sizes of 3 to 6 inches. Oil fired vertical shaft kiln (VSK) refractory lining inside portion having about 33 metre conical vertical chimney, is used for the firing or calcinations of lime stone at a temperature of about 900 Degree C. The chimney of VSK is so arranged that the speed of exhaust gases and fumes in the chimney may travel @ 9 to 12 m/sec. The diameter of chimney is so calculated that the lower/bottom portion of chimney is one third of the total stack of chimney. Skip bucket with rope, which is driven by electric motor, is arranged for loading of stone pieces for firing of calcination. These stone pieces are loaded from the top of kiln, this process is done regularly as per the requirement of stone calcinations. A cyclone or dust catcher is also arranged with a scrubber which collect about 50 to 80% dust particles and removed with scrubber. Approx. 4 kg. 6 kg. sludge/hr. is removed by this process which can be discharged to land fill. The firing is done with the help of burner. The firing is initiated from the bottom section of kiln and after a suitable interval the calcined lime is unloaded through the outlets provided at the bottom section of kiln. Property calcined lime is sorted out in different grades like A, B and C grade. Semi burnt lime stones are charged again in the kiln for calcinations. The dust, clinkers ash and other harmful materials are removed from the finished product properly sorted lime is packed and stored for sale.
Quality Control and Standards
The Bureau of Indian Standards has formulated and published the following specifications for the necessary guidance and maintenance for the quantity of different types of lime product.
IS 1861 : 1961 Lime in vertical mixed feed type kilns and its manufacture
IS 712: 1973 Methods of testing for building lime.
IS 1624 : 1974 Fields testing and building lime and mortars.
Production Capacity (per annum)
The production capacity envisaged in this project is about 8,000 MT, valued at Rs. 1,35,38,428 per annum.
Motive Power
Approximate 36000 KWH per annum power will be required.
Pollution Control
The project does not create any noise or water pollution, proper dust collector or cyclones arranged with a dust scrubber system to control 50% to 80% dust. The oil fired vertical shaft kiln having 33 meters heights of removes all types of fuel gases and smokes very easily and does not create any dust/air pollution. However, necessary clearance of NOC is to be obtained from the state pollution Control Board. Eye goggles and hand gloves may be used during the working hours.
Energy Conservation
Properly insulated and refractory lined furnace fuel on account of energy conservation. The oil fired furnace has better combustion control facilities which helps in saving energy from 30% to 40% when compared to conventional coal fired shaft furnaces.
i) Machinery and equipments should be lubricated properly at regular intervals as per the schedule.
ii) All the plugs may be kept off, when the electricity is not required.
iii) The belts on pullies may be tightened properly during the working process.
iv) The layout of the plant should be maintained systematically.
FINANCIAL ASPECTS
A. Fixed Capital
(i) Land and Building (Rs.)
Land area-one acre 6,50,000
Office and work shed area 300 sq. mtrs. 2,95,000
Store, Workshop, Laboratory area about 100 sq. mtrs. 2,75,000
Boundary wall, MS Gate, vehicle’s stand,
Time office etc. 80,000
Total 13,00,000
(ii) Machinery and Equipments (All indigenous)
Sl. No. Description Qty. Value
(No.)
(a) Production Unit
1. Oil ftical shaft kiln with Refractory lining 1 No. 5,00,000
Inside portion of kiln having 33 metre height
chimney made of steel Fabricated plate form
type having all arrangement with skip bucket
and burners etc. Capacity 30 Tonne per day.
2. Jaw crusher for crushing the stone or pebbles 1 No. 75,000
with 10 HP motor and starter etc.
3. Rotary self-driven for sieving the lime having 1 No. 40,000
Different mesh sizes with 1.5 HP motor and
starter etc.
4. Wheel barrow for handling of raw 4 Nos. 60,000
material and finished product
5. Balance for weighing upto 500 kg. 2 Nos. 6,000
6. Overhead water tank: 1 No. 30,000
capacity 1000 litrs. Water storage
having well boring jet with 2 HP
motor and starter and pipe line fitting etc.
7. Beg sewing machine 1 No. 30,000
8. Generator set capacity 10 KVA 1 No. 50,000
9. (a) Other tools, fixtures, dies, hand
tools, racks etc. L.S. 20,000
(b) Testing Equipments L.S. 10,000
(c) Pollution Control Equipments
Exaust Fan 5 Nos. 15,000
Dust cotcher 1 No. 40,000
Scrubber 1 No. 1,80,000
Ducting L.S. 15,000
Fencing for plantation L.S. 30,000
Hand gloves, eye goggles etc. L.S. 10,000
d) Energy Conservation Equipments L.S. 10,000
(e) Electrification and installation 1,12,000
@ 10% on machinery and equipments
(f) Cost of office furniture and equipment L.S. 50,000
like working tables, chair, Almirah and
cash box etc.
Total cost of machinery and equipments
(a+b+c+d+e+f) 12,83,000
(iii) Pre-operative Excpenses 50,000
Total Fixed Cost (i+ii+iii) 26,33,000
B. Working Capital (per month)
(i) Staff and Labour (per month)
Description Nos. Salary Total
(Rs.) (Rs.)
(a) Administrative Staff
Manager-Cum-Technical Expert 1 7,000 7,000
Supervisor 1 4,000 4,000
Clerk –Cum-Cashier 1 3,500 3,500
Store Keeper 1 3,000 3,000
(b) Technical (Skilled and Unskilled Workers)
Salary Total
(Rs.) (Rs.)
Skilled workers 4 3,000 12,000
Semi- skilled workers 4 2,500 10,000
Unskilled workers 6 2,200 13,200
Peon 1 2,000 2,000
Chowkidar 1 2,000 2,000
Total 56,700
+ 15% perquisites on salary 8,505
Total 65,205
(ii) Raw Materials (per month)
Particulars Qty Rate Value
(MT) (Rs.) (Rs.)
Lime stone blocks 800 250 2,00,000
(including transport charges
Packing material like gunny L.S. L.S. 5,000
Bags etc.
Total 2,05,000
(iii) Utilities (per month)
Sl. Particulars Qty. Rate Value
No. (Rs.) (Rs.)
1. Power 3000 3.75 11,250
KWH
ii) Fuel/Furnace oil 75 KL. 7,000 5,25,000
iii) Water L.S. L.S. 850
Total 5,37,100
(iv) Other Contingent Expenses (per month) (Rs.)
Postage and Stationery 1,000
Advertisement and Publicity 3,000
Repair and Maintenance 500
Telephone 500
Consumable store 500
Travelling and Local expenses 1,000
Sales Expenses 3,000
Insurance 3,000
Misc. expenses 1,500
Total 14,000
(v) Total Working Capital (per month) Rs.
Staff and Labour 65,205
Raw material 2,05,000
Utilities 5,37,100
Other Contingent expenses 14,000
Total 8,21,305
Working capital for 3 months 24,63,915
C. Total Capital Investment
Fixed capital Rs. 26,33,000
Working capital for 3 months Rs. 24,63,915
Total 50,96,915
FINANCIAL ANALYSIS
(1) Cost of Production (per annum) Rs.
Total recurring cost per annum 98,55,660
Depreciation on building @ 5% 32,500
Dep. On kiln @ 20% 1,00,000
Dep on machinery and equips. @ 10% 71,700
Dep on tools fixture, dies, racks @ 25% 5,000
Dep. On office furniture and equips. @ 20% 10,000
Interest on total capital investment @ 14% 7,13,568
Total 1,07,88,428
(2) Turnover (per annum)
Product Qty. Rate Value
(MT) (Rs.) (Rs.)
Burnt Lime 8000 1692 1,35,36,000
(3) Net Profit (per annum)
= Total Turnover – Cost Production
= Rs. 1,35,36,000 – 1,07,88,428
= 27,47,572
(4) Net Profit Ratio (per annum)
= Net Profit x 100
Total Turnover
= 27,47,572 x 100 x 100
1,35,36,000
= 20.3%
(5) Rate of Return (per annum)
= Net Profit x 100
Total capital investment
= 27,47,572 x 100
50,96,915
= 53.91%
(6) Break-even Point
Fixed Cost (per annum) Rs.
Total depreciation 2,19,200
40% of Staff and Labour 3,12,984
40% of utilities and other contingent
expenses (excluding insurance) 26,30,880
Insurance 36,000
Interest @ 1`4% 7,13,568
Total 39,12,632
B.E.P.
= Fixed Cost x 100
Fixed Cost + Profit
= 39,12,632 x 100
39,12,632 = 27,47,572
= 58% |
