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PRODUCT CODE : 94389
QUALITY AND STANDARDS : IS 5786 (Part 1) : 1978
INTRODUCTION
Ceramic cores for resistors are specialized ceramic material made out of steatite porcelain. These cores are in the form of rods and tubes of various diameters and length. It is manufactured by using highly pure raw materials like calcined alumina with addition of small quantity of pure clay. These are used in consumer electronic products such as radios, televisions and sophisticated electronic instruments.
MARKET POTENTIAL
The demand of the product is increasing day-by-day as development of electronic industry is showing upward trend. Our country has a very big concentration of electronic industries. In view of the fast development in the industrial activity in the field of electronics, the demand for the technical ceramics is ever increasing and creating wide scope for setting up new units.
BASIS AND PRESUMPTIONS
1. 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 shifts basis till particular firing cycle is completed in all respects.
2. To achieve full production 1 to 2 months trial production is required.
3. Labour and wages are mentioned as per the prescribed Minimum Wages Act.
4. Interest rate @ 14% on total capital investment.
5. The cost of land, construction charges, cost of machinery and equipment, raw materials, and consumables, other expenditure etc. indicated in the profile are based on the prices prevailing at the time of preparation and are subject to necessary changes from time to time based on local conditions.
IMPLEMENTATION SCHEDULE
Sl. No. Activity Period
(in months)
1. Registration as SSI, site selection, processing
for financial assistance. 6
2. Procurement of machinery, their installation and trial run. 6
3. Time required for commercial operation of the plant 6
Total 18
TECHNICAL ASPECTS
Process of Manufacture
China clay, talc and barium carbonate are the main raw materials required for the manufacture. All the raw materials in powdered form (150 to 200 mesh) are taken in proportion and charged into the ball mill. Wet grinding is carried out by adding sufficient quantity of water. The main objective of ball mill is to get homogenous mixture. The ground materials is discharged into an agitator through an electromagnet and sieve. The slurry is then sent to the filter press where filter cakes with 18-20% water content are obtained. Filter cakes are charged into de-airing pugmill and cores are extruded by fixing the desired die. The shaped cores are dried and fired in an electric or muffle furnace at a temperature of 1300°C after which the cores are trimmed and packed for dispatch.
Quality Control and Standards
IS 5798 (Part i) General requirements and methods of test.
Production Capacity
This scheme envisages manufacture of 600 MT of ceramic cores per annum of various diameters.
Pollution Control
The project does not create any noise or water pollution. The latest shuttle is more fuel efficient. The smoke emission will have to be continuously monitored as per rule.
FINANCIAL ASPECTS
A. Fixed Capital
(1) Land and Building (Rs.)
a) Land 1000 sq. meter @ Rs. 600 sq, meter 6,00,000
b) Building: Built-up area workshed 400 sq.
meters. @ Rs. 2,500 sq. mtrs. 10,00,000
Storage shed 100 sq. mtrs. @ Rs. 1500 sq. mtrs. 1,50,000
Office, Laboratory and chowkidar’s cabin
200 sq. metrs. @ Rs. 2,000 Sq. mtrs. 4,00,000
Compound Wall 50,000
Total 22,00,000
(ii) Machinery and Equipments
Description Rate Nos. Total Price
(Rs.) (Rs.)
Ball mill size
1350 x 1200 mm. with
porcelain lining, pebbles 10 HP
motor, starter and accessories 75,000 3 2,25, ,000
Vibrating screen 10’ x 18’ with 0.5 20,000 2 40,000
HP motor, starter and accessories
Electromagnet/permanent magnetic
Separator 5,000 3 15,000
Agitator capacity 1000 ltrs. With
3 HP electric motor and accessories 35,000 2 70,000
Diaphram pump with 5 HP motor
and accessories 60,000 1 60,000
Filter press, Plates 500 75,000 2 1,50,000
De-airing extruder, suitable for drawing
rods/tubes of sizes 1 mm to 25 mm
dia cap. 50 kgs./hr. 1,00,000 2 2,00,000
Drying oven size 1800x1200x900 mm.
with exhaust fan temp. controlling etc. 50,000 1 50,000
Centreless grinder, capable of trimming
rods of 1 mm. to 25 mm. with motor
starter and accessories 50,000 3 1,50,000
Weighing scale, platform type cap. 500 kgs. 12,500 2 25,000
Laboratory equipment for testing of
water absorption, shrinkage and other tests L.S. 50,000
Total 10,35,000
Dies for various rods tubes hand tools and
other misc. equipments L.S. 50,000
Electrification and installation L.S. 1,00,000
Shuttle kiln with L.D.O. as fuel blower,
burner and other accessories etc. L.S. 10,00,000
Total 22,35,000
(iii) Pre-operative expenses 1,00,000
Total 23,35,000
Total Fixed Capital (Rs.)
Land and Building 22,00,000
Plant and Machinery 23,35,000
Total 45,35,000
B. Working Capital (Per Month)
(I) Personnel (per month)
Description Nos. Salary/month Total (Rs.)
Works Manager 1 7,000 7,000
Technical supervisor 2 4,500 9,000
Accountant/cashier 1 4,000 4,000
Operator 6 2,500 15,000
Semi-skilled workers 8 2,000 16,000
Un-skilled workers 5 1,800 9,000
Watchman/Peon 2 1,750 3,500
Total 63,000
Perquisites @ 15% 9,525
Total 73,025
Or Say 73,000
(ii) Raw Material (per month)
Description Qty. Rate (Rs.) Amount (Rs.)
High Alumina calcined 10 MT 5,000 50,000
China clay 29 MT 2,000 58,000
Ball clay 3 MT 1,200 3,600
Calcite 3 MT 1,400 4,200
Steatite 9 MT 1,500 13,500
Binders, packing materials L.S. 2,000
Total 1,31,300
(iii) Utilities (per month) (Rs.)
Average consumption of 10,000
Units/months @ Rs. 3/units 30,000
L.D.O. 10,000 ltres, @ Rs. 15 ltrs 1,50,000
Total 1,80,000
(iv) Other Contingent Expenses (Rs.)
Postage and Stationery 1,000
Telephone 2,500
Consumables stores 3,000
Repair and Maintenance 3,000
Transportation charges 2,500
Advertisement and Publicity 2,000
Sales expenses 4,000
Insurance 2,000
Total 20,000
(v) Total Recurring Expenditure (per month) Rs.
Salaries 75,000
Raw materials 1.31,300
Utilities 1,80,000
Other contingent expenses 20,000
Total 4,04,300
Or Say 4,04,000
Total Working Capital (on 3 months basis) 12,12,000
MACHINERY UTILIZATION
The firing is the bottleneck in this industry. The capacity utilization is considered to be 75% of the total installed capacity
C. Total Capital Investment
Total fixed capital Rs. 45,35,000
Total working capital Rs. 12,12,000
Total Rs. 57,47,000
FINANCIAL ANALYSIS
(1) Cost of Production (per annum) Rs.
Total recurring cost 48,48,000
Depreciation on building @ 5% 80,000
Depreciation on machinery and
Equipment @ 10% 1,03,500
Depreciation on furnace @ 20% 2,00,000
Depreciation on moulds and fixtures @ 25% 12,500
Total interest @ 14% on fixed capital 8,04,580
Total 60,48,580
(2) Turnover (per year)
Item Qty Rate Value (Rs.)
Technical ceramics
(resistor corer) 600 M.T. 12,000 MT 72,00,000
(3) Net Profit (per year)
= Turnover-cost of production
= Rs. 72,00,000 – 60,48,580
= Rs. 11,51,420
(4) Net Profit Ratio
= Net profit per year x 100
Turnover per year
= 11,51,420 x 100
72,00,000
= 16%
(5) Rate of Return
= Net profit per year x 100
Total Investment
= 11,51,420 x 100
57,47, 000
= 20%
(6) Break-even Point
Fixed Cost (Rs.)
Total Depreciation 3.96,000
Total Interest 8,04,580
40% of salary and wages 3,50,400
40% of other Contingent expenses 86,400
Insurance 24,000
Total 16,61,380
B.E.P.
= Fixed Cost x 100
Fixed cost + Net Profit
= 16,61,380 x 100
16,61,380 + 11,51,420
= 59% |
