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PRODUCT CODE : 94389, 94330 and 94341
QUALITY AND STANDARDS : IS 11475: 1985. Stoneware Dinner ware
: IS 2838: 1984 Stoneware containers for
general purpose
PRODUCTION CAPACITY : Qty. : 600 M.T. (per annum)
Value : Rs. 91,20,000
INTRODUCTION
Crockery wares are being manufactured in earthenware, stoneware, vitreous china and bone china. This project profile is prepared for the manufacture of tableware, which comprises crockery items and some other articles made of stoneware. Under the group of tableware cups, saucers, plates, bowls, tea sets, dinner, sets jars, barnels etc. are covered. They are impermeable to most of the liquids and water absorption is less than 0.5%. ceramic crockery ware have their own place in the field of kitchenware due to their outstanding properties over melamine and stainless steel wares, as these are more hygienic, easily cleanable, heat resistant etc. the main uses of these items are in houses, railway, defence, canteens, restaurants, hotels etc.
MARKET POTENTIAL
Stoneware tableware and other items are used in houses, hotels, restaurants, tea stalls, railway canteens, defence canteens etc. the installed capacity of the industry located mostly in the Northern parts of the country is estimated around 1,40,000 M.R. per annum. However, in the southern region production of these products is less than the demand. On the national level demand of the product is greater than the supply. This product has good scope in international markets, mainly in Gulf and South African Countries. It is estimated that demand of this item is increasing steadily at the rate of 10% per annum. The demand which was subdued in the past 3-4 years due to the use of substitute items made of melamine and steel have again shifted to ceramic crockery. There is a good scope for encouraging new units in this line of activity especially in the southern part of the country.
BASIS AND PRESUMPTIONS
Efficiency and working hours considered for full cap0acity utilization;
(a) 80% efficiency.
(b) 8 working hours per day and 300 days in a year.
(c) Wages are taken as per the prevailing norms.
(d) Interest is taken @ 14% annum.
It is expected that the project can be implemented within one year from the project report state.
TECHNICAL ASPECTS
Process of Manufacture
The raw materials like quartz, feldspar, ball clay, fire clay etc. are charged in ball mill in desired proportion with 30-40% water and ground to the fineness of 100-120 No, mesh. China clay and other plastic clays which are white burning are blunged in blunger with 30-40% water. The slurry from ball mill and blunger is mixed and passed through fine mesh and electromagnet in order to remove the iron particles from the slurry. It is mixed properly in agitator tank from where it is passed through filter press for dewatering to make filter cakes. These cakes are fed into de-airing pug mill to extrude the compact body. While the round shaped articles are made by this body on Jigger and Jolly, other shapes are made by slip casting process. For casting, slip is made and poured into the moulds of plaster of paris. The articles are finished, glazed, and fired at the temperature of 1250-1280°C. Tunnel Kiln is proposed for firing in this project profile. Use of D.D. Kilns and shuttle Kilns is also in practice but not economical. The articles taken out from the kiln are sorted and packed for selling.
Quality Control and Standards
The Bureau of Indian Standards has formulated and published IS 11475:1985 Stoneware Dinnerware for carrying out various tests and control of the quality of the product.
Production capacity (per annum)
Quantity : 600 M.T.
Value : Rs. 91,20,000.
Motive Power 75HP.
Pollution Control
For the purpose of pollution control, it is advisable to provide dust collecting system and necessary retrofitting with the kiln to reduce waste gas pollution. The unit may seek NOC from the concerned authority.
Energy Conservation
Crockery stoneware industry needs energy conservation in fuel as well as electricity. Ceramic fiber lined tunnel Kiln is proposed in the project profile which conserves around 30-35% fuel when compared with conventional DD Kiln.
FINANCIAL ASPECTS
A. Fixed Capital
(i) Land and Building (Rs.)
Land 3000 Sq. m. @ Rs. 200 Sq. m. 6,00,000
Building
Machinery shed 300 Sq. m Rs. 2000 Sq.m 6,00,000
Kiln shed 150 Sq.m @ Rs. 2,000 3,00,000
Raw materials Materials shed 100 Sq.m @ Rs.2000 sq.m. 2,00,000
Finished goods godown 100 sq.m. @ Rs. 2000 sq.m. 2,00,000
Office 60 Sq.m. @ Rs. 2500 sq.m. 1,50,000
Boundary walls etc. L.S. 1,50,000
Total 22,00,000
(ii) Machinery and Equipments
Production Unit
Description Ind./ Qty. Price
Imp. (Rs.)
Ball Mills size 1800 x 1800 mm.
With all accessories and 10 HP
Motor each Ind. 2 3,70,000
Ball Mills size 900 x 900 mm.
With all accessories and
7.5 HP Motor Ind. 1 70,000
Screw blunger, capacity 5000 Litre
with 5 HP Motor and cemented tank Ind. 2 1,50,000
Vibrating screen size 900 mm x
900 mm with all accessories and
1 HP Motor Ind. 2 60,000
Electromagnet with rectifier etc. Ind. 1 25,000
Agitator with 3 HP Motor and
Cemented Tank Ind 1 50,000
Diaphragm pump, storke 225 mm
suction 7.5 mm with 7.5 HP Motor Ind. 1 75,000
Filter press chamber dia 600 mm
number of plates 50 Nos. Ind 1 1,50,000
De-airing pugmill with vacuum
pump etc. with 5 HP Motor Ind. 1 2,00,000
Disintegrator size 550 cm with all
accessories and 7.5 HP Motor Ind. 1 75,000
Jigger and Jolly with 5 HP
Electric Motor Ind. 15 75,000
Sagger Press Power operated
with 5 HP Motor Ind. 1 60,000
Water Pump set with 2 HP Motor Ind. 1 20,000
Pot Mill, Pot No. 6 Pot size 9’ x 10’
with Electric Motor of 2 HP Ind. 1 20,000
Total 14,00,000
Electrification and installation charges @ 10%
on cost of machinery 1,40,000
Testing equipments 1,00,000
Misc. tools, Racks, Trolleys etc. 85,000
Cost of office equipments 75,000
Total 18,00,000
Kilns (Rs.)
Ceramic fibre lined push bat tunnel Kiln with
control system oil storage tank, combustion fan,
hydraulic pusher and other equipments Specifications 27,00,000
Length 24000 mm
Setting width 900 mm
No. of Burners 4 Nos.
Power required for auxiliary equipment 10 HP
Capacity 2 MT per day
(Crockery ware)
(iii) Pre-operative Expenses Rs. 3,00,000
Total fixed capital (i + ii + iii) 70,00,000
B. Working Capital (Per Month)
(i) Personnel (per month)
Designation Nos. Salary Total
(Rs.) (Rs.)
Manager-cum-ceramist 1 8,000 8,000
Supervisors 2 4,000 8,000
Skilled workers 15 2,000 30,000
Semi-skilled workers 15 1,500 22,500
Fitter 1 2,000 2,000
Electrician 1 2,000 2,000
Accountant 1 4,000 4,000
Clerk cum Typists 2 2,500 5,000
Peon 1 1,500 1,500
Watchman 2 1,500 3,000
Total 86,000
Perquisites @ 15% of total Salary 12,900
Total 98,900
Or Say 99,000
(ii) Raw Materials (per month)
Items Ind/Imp Qty. Rate Total
(Rs.) (Rs.)
Quartz/Silica Sand Ind. 13 M.T. 700/M.T. 9,100
Felspar Ind. 10 M.T. 750/M.T. 7,500
China clay Ind. 10 M.T. 2000/M.T. 20,000
Ball Clay Ind. 5 M.T. 1000/M.T. 5,000
Fire Clay Ind. 20 M.T. 600/M.T. 12,000
Marble/Calcite Ind. 750 Kg. 2000/M.T. 1,500
Zinc Oxide Ind. 50/Kg. 50/Kg. 2,500
Zirconium opacifier Ind. 250 Kg. 40/Kg. 10,000
Barium Carbonate Ind. 75 Kg. 30/Kg. 2,250
Colouring agents Ind. L.S. 5,000
Plaster Paris Ind. 2 M.T. 2000 MT 4,000
L.D.O. (Fuel) Ind. 10KL. 14,000 1,40,000
Kiln furniture Ind. L.S. 6,000
Packing materials Ind. L.S. 5,000
Total 2,29,850
Or Say 2,30,000
(iii) Utilities (per month)
Power charges 62 KW. Rs. 40,000
(iv) Other Contingent Expenses (Rs.)
(per month)
Postage and Stationery 2,000
Telephone 3,000
Consumable stores 5,000
Repair and maintenance 5,000
Transport charges 5,000
Advertisement and publicity 3,000
Insurance etc. 4,000
Misc. expenses 4,000
Total 31,000
(iv) Total Recurring Expenses (per month) Rs.)
Personnel (wages) 99,000
Raw materials 2,30,000
Utilities 40,000
Other contingent expenses 31,000
Total (L.S.) 4,00,000
(v) Total Working Capital for 3 months 12,00,000
C. Total Capital Investment
1. Fixed Rs. 70,00,000
2. Working capital (3 months) Rs. 12,00,000
Total Rs. 82,00,000
Machinery Utilization (on the basis of 24 hours working)
Ball Mills 100%
Screw blunger 100%
Filter press 80%
Jigger Jolly 80%
Tunnel Kiln 80%
FINANCIAL ANALYSIS
(1) Cost of Production (per annum) (Rs.)
Total recurring expenditure 48,00,000
Depreciation on building @ 5% 80,000
Depreciation on machinery and
Equipments @ 10% 1,80,000
Depreciation on kiln @ 20% 5,40,000
Interest on total capital investment @ 14% 11,48,000
Total 67,48,000
(2) Turnover (per year)
Items Qty. Rate Value
(Rs.) (Rs.)
Stoneware Crockery items 600 MT 16,000 MT 96,00,000
Deducted 5% towards rejection 4,80,000
Total 91,20,000
(3) Net Profit (per year)
= Rs. 91,20,000 – 67,48,000
= Rs. 23,72,000
(4) Net Profit Ratio
= Net profit per year x 100
Turnover per year
= 23,72,000 x 100
91,20,000
= 26%
(5) Rate of Return
= Net profit per year x 100
Total investment
= 23,72,000 x 100
82,00,000
= 28.93%
(6) Break-even Point
Fixed Cost (Rs.)
Depreciation on Building and
Equipment and Kiln 8,00,000
Interest on total investment 11,48,000
40% of other contingent expenses 1,29,600
40% of salary and wages 4,75,200
Insurance 48,000
Total 26,00,800
B.E.P.
= Fixed cost x 100
Fixed cost + profit
= 26,00,800 x 100
26,00,800 + 23,72, ,000
= 52.3% |
