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PRODUCT CODE : 29129
QUALITY AND STANDARDS : IS 12847 : 1989
PRODUCTION CAPACITY : Quantity : 300 M.T.
Value : Rs. 1,65,00,000
MONTH AND YEAR OF
PREPARATION : December, 2002
INTRODUCTION
Silicon Carbide crucibles are made out of silicon carbide and graphite utilizing tar pitch or other synthetic resins as bonding materials. These are highly refractory products used for melting ferrous and non-ferrous metals and alloys in the foundries due to their superb inherent properties such as good thermal conductivity, low thermal expansion, resistance to thermal shocks, resistance to wetting to molten metals, etc. when compared to clay bonded graphite crucibles. These crucibles are mostly used for melting non-ferrous precious metals such as brass, copper, nickel, chromium as well as their alloys.
MARKET POTENTIAL
In view of the fast development in the industrial activity in the fields of foundry and engineering, the demand for these crucibles is ever increasing particularly from mines, Railways, aeronautics, Defence Production units and other precious metals and alloys manufacturing units in the country, which, in turn, are creating wider scope for setting up new units.
BASIS AND PREESUMPTIONS
It has been taken into consideration that the unit will work on single shift basis for 300 days in a year. The firing operations are, however, to be carried out continuously on three-shift basis till particular firing cycle is complete in all respects.
The cost of land, construction charges, cost of machinery and equipment, raw materials and consumables, salaries and wages, other contingent expenses etc. indicated in the profile are based on the prices prevailing at the time of preparation. Therefore, they are subject to necessary charges from time to time based on local conditions.
The bottleneck operation of the process is the kiln capacity and firing cycle. The efficiency of the kiln and time duration of its each firing cycle entirely depends upon the design and type of kiln proposed to be used. In this case, intermittent type oil-fired shuttle kiln has been taken into consideration so as to cope with the production, which is well suited particularly for setting up a small scale unit.
It is expected that the profiles will accrue only when the unit achieves its production beyond its break-even point and is subject to the stability of costs and prices of inputs as well as demand forecast and marketability
IMPLEMENTATION SCHEDULE
The time schedule of implementation of the project in the initial stages and generation period for achieving optimum production levels in the unity etc. will be entirely depending upon the entrepreneur’s capabilities and his capacity in availing facilities from different agencies involved in the development of small scale industries. Taking an optimistic view, the following schedules have been drawn which are barest minimum requirements for successful launching of the project.
Sl.No. Activity Period
1. Selection of site and construction 3 to 6 months.
2. Preparation of project report and
provisional registration under SSI 1 to 2 months.
3. Availing of finances 3 to 4 Months.
4. Procurement of machinery and equipment,
raw materials and consumables etc. 2 to 3 months.
5. Erection and Commissioning, construction of kilns, dries etc. 4 to 5 months
6. Trial runs and Commissioning of regular production 1 to 2 months.
TECHNICAL ASPECTS
Process of Manufacture
The raw materials, graphite and silicon carbide with additives such as ferrous-silicon-ferro managanese etc., are graded to the required sizes and mixed with bounding materials like molten pitch or other suitable synthetic resigns in suitable proportions. The mixing is done in a kneading mill, namely through U-mixer when the bonding materials are in molten condition. The kneaded homogenous mixture is charged into ejection type crucible die fitted on hydraulically operated roller press. While pressing operation is carried the total mass of mixture in the mould is kept in uniform hot condition to avoid manufacturing defects while pressing. The shaped articles are left for few days for setting and cooling. The ware are inspected for laminations, cracks etc. and then loaded into shuttle kilns for firing at 1350 Degree C – 1400 Degree C under reducing atmosphere to avoid oxidation of graphite and carbon. To create reducing atmosphere, the products should be loaded into fire boxes called saggers tightly packed with reducing agents like coke/coal dust, sometimes even graphite powder. The fired ware are unloaded from the kiln after cooling. These are inspected cooled with a suitable glaze, which has inherent properties of protecting the crucible from oxidation at operating temperature. The glazed wares are charged into flashing furnace for the purpose of flashing the crucibles at red hot temperature utilizing coke. The finished crucibles are then suitable packed for disposal.
Quality Control and Standards
The quality of the crucibles mainly depends upon the number of heats/melts it can withstand in the foundry operations. The Bureau of Indian Standards has formulated and published the following specifications for maintaining the quality of crucibles;
IS 1748 : 1991 Sizes of Graphite Crucible
IS 11321 : 1985 Graphite for Graphite crucible
IS 12817 : 1989 Carbon Bonded Silicon Carbide Crucibles
Production Capacity
The profile envisages setting up a unit for manufacture of 300 tonnes of carbon bonded Silicon Carbide Crucibles valued at Rs. 1.65 crores per annum.
Motive Power 60 KW
Pollution Control
As this project is based on latest shuttle type intermittent kilns provided with oil firing system, there may not be much of pollution due to spread or emission of hazardous smoke etc.
Energy Conservation
Refractory products of this nature are mostly manufactured by the small scale units utilizing coal-fired down draft kilns which are prone to emit thick smoke with Fly ash and other pollutants. Firing cycle in such kilns was also quite longer taking more time. By introduction of shuttle kiln in the present process replacing coal-fired down draft kiln, the small scale units can be able to produce quality products in shorter firing cycle consuming less fuel and maintaining pollution free clean environment.
General precautions for saving energy particularly electricity and fuel oils are required to be followed by the unit by adopting energy conservation techniques not only to conserve and power and fuels but also to save considerable expenditure on their consumption in its own interest and also in the interest of the nation as a whole.
FINANCIAL ASPECTS
A. Fixed Capital
(i) Land and Building
Land 1000 Sq. mt. 5,00,000
@ Rs. 500 per Sq. mt.
Particular Area in Rate Cost
Sq.mt. per q. mt. (Rs.)
Office block 40 2,200 88,000
Raw material Godown 50 2,200 1,10,000
Manufacturing shed 250 1,500 3,75,000
Kiln shed. 100 1,500 1,50,000
Toilet 20 2,200 44,000
Total 7,67,000
+ Sanitary fitting and electrification @ 15% 1,15,050
G. Total 8,82,050
(i) Machinery and Equipments
Description Nos. Value
(Rs.)
Jaw crusher 150x75 mm. size with
3 HP electric motor and fittings 1 No. 30,000
Disintegrator 350 mm size with
5 HP motor and fittings 1 No. 40,000
Electro/permanent magnet 1 No. 10,000
Ball mill 900x900 mm size with
7.5 HP motor and other fittings 1 No. 60,000
Miscellaneous tools and equipment like
heating kettle, mixing showels etc. 10,000
Ejection type steel dies for different
standard sizes of crucibles. 1,00,000
Vibrating screen with dust accumulator
900x600 mm with 3 HP motor and different
mesh netting 1 No. 25,000
Weighing scales 10 Kgs. Capacity and 30 Kgs.
Capacity platform type 2 Nos. 10,000
‘U’ Trough mixer/kneader 600x900 mm size
with 7.5 HP motor and other fittings 1 No. 40,000
Hydraulically operated Roller press 100 tonnes
capacity imported/indigenous with hydraulic
accumulator pump, pipe fittings, control valves,
pressure gauges and other accessories etc. 4,50,000
Oil firing equipment such as burners – 8 Nos,
Blowers-2 Nos. cash with 3 HP motor,
Pipe line fitting – 2 Nos. of preheaters,
Oil filters-2 Nos. storage and servicing
tanks-2 Nos. pump etc. including thermocouples
with pyrometers etc. 1,00,000
Testing equipment 17,000
Office equipment and furnituire, workshop
table, racks, cupboards etc. 32,000
Flashing furnaces 13,000
Shuttle kilns 19x10 ft. and 12x10 ft. with
common chimney 2 Nos. 27,00,000
Errection installation and electrification charges 15,000
Pre-operative Expenses 20,000
Cost of machinery and equipment 36,72,000
+ 10% CST cartage and installation charges 3,67,200
Total 40,39,200
Or Say 40,40,000
Total fixed capital 54,22,000
B. Working Capital
(i) Staff and Labour (per month)
Description Nos. Salary (Rs.)
Works Manager 1 No. 10,000 10,000
Supervisor 2 Nos. 4,000 8,000
Electrician-cum-Mechanic 1No. 3,000 3,000
Accountant 1 No. 4,000 4,000
Clerk-cum-Typist 1 No. 3,000 3,000
Storekeeper 1 No. 3,000 3,000
Peon and watchman 4 Nos. 1,500 10,000
Skilled workers 3 Nos. 3,000 9,000
Furnace operators 3 Nos. 2,500 7,500
Unskilled workers 15 Nos. 2,500 37,500
Perquisites @ 25% 22,500
Total 1,14,000
(ii) Raw Materials (per month) Value (Rs.)
Graphite imported/indigenous 13 tonnes @ Rs. 25,000 per tonne 3,25,000
Silicon Carbide 9 tonnes @ Rs. 22,000 per tonne 1,98,000
Ferro-Manganese and Ferro silicon 3.5 tonnes
@ Rs. 11,000 average per tonne 38,500
Bonding materials such as tar and pitch
synthetic resin etc. 5 tonnes @ Rs. 6,000 average per tonne. 30,000
Fire clay ball clay, china clay and other minerals like
silimanite, bauxite, kyanite etc. for saggers and kiln furniture 10,000
Misc. such as Lubricants, Chemicals etc. 7,000
Coke 10 tonnes @ Rs. 2,500 per tonne 25,000
Total 6,35,000
(iii) Utilities (Rs.)
LDO/7.5 K.L.@ 18,000/K.L. 1,35,000
Power 60x0.8x25x4 38,400
Water 1,000
Total 1,74,400
(iv) Other Contingent Expenses (per month) (Rs.)
Postage and stationery 1,000
Transport and conveyance 20,000
Repair and Maintenance 10,000
Telephones 2,000
Packing materials and other consumables 3,000
Insurance 2,000
Total 38,000
Total Recurring Expenditure
(per month) 9,59,900
Say 9,60,000
FINANCIAL ANALYSIS
(1) Cost of Production (per annum) (Rs.)
Total recurring expenditure 1,15,20,000
Interest on capital investment @ 14% 11,62,280
Depreciation on machinery and equipment @ 10% 1,34,000
(1) Cost of Production (per annum) (Rs.)
Depreciation on Kilns @ 20% 5.40,000
Depreciation on Building @ 5% 4.41.025
Unforeseen excpenses 5,000
Total 1,38,02,305
(2) Total Sales (per annum)
300 tonnes of assorted sizes and shapes of
Crucibles @ Rs. 54,308 1,62,92,450
(3) Profitability (per annum)
Profit = 16,29.2450 – 1,38,02,305 = 24,90,145
Say = 24,90,000
(4) Profit on Sales
= Profit x 100
Sales
= 24,90,000 x 100
1,62,,00,000
= 15.4%
(5) Profit on Capital
= Profit x 100
Total capital Investment
= 24,90, ,000 x 100
83,02,000
= 29.9%
(6) Break-even Point
Fixed Cost (Rs.)
Total depreciation 11,15,025
Interest on capital 11,65,080
Insurance 24,000
40% of staff and labour 5,35,200
40% of other expenditure 1,72,800
Total 30,12,160
Or Say 30,12, ,000
B.E.P.
= Fixed cost x 100
Fixed cost + Profit
= 30,12, ,000 x 100
30,12, ,000 + 24,90,000
= 54.74% |
