This document provides details for a proposed project to produce specialized alloy steel and heat resistant steel castings. The project would have an annual production capacity of 700 metric tons of machined castings worth Rs. 36,400,000. It describes the market potential and demand for such castings from industries like railways, cement, and power. Technical aspects such as the casting process, quality standards, and machinery requirements are covered. Finally, financial projections are given for capital costs totaling Rs. 1,36,93,000, annual production costs of Rs. 3,23,80,950, and expected annual turnover of Rs. 36,400,000, indicating the project would be financially viable.
This document provides details for a proposed project to produce specialized alloy steel and heat resistant steel castings. The project would have an annual production capacity of 700 metric tons of machined castings worth Rs. 36,400,000. It describes the market potential and demand for such castings from industries like railways, cement, and power. Technical aspects such as the casting process, quality standards, and machinery requirements are covered. Finally, financial projections are given for capital costs totaling Rs. 1,36,93,000, annual production costs of Rs. 3,23,80,950, and expected annual turnover of Rs. 36,400,000, indicating the project would be financially viable.
This document provides details for a proposed project to produce specialized alloy steel and heat resistant steel castings. The project would have an annual production capacity of 700 metric tons of machined castings worth Rs. 36,400,000. It describes the market potential and demand for such castings from industries like railways, cement, and power. Technical aspects such as the casting process, quality standards, and machinery requirements are covered. Finally, financial projections are given for capital costs totaling Rs. 1,36,93,000, annual production costs of Rs. 3,23,80,950, and expected annual turnover of Rs. 36,400,000, indicating the project would be financially viable.
This document provides details for a proposed project to produce specialized alloy steel and heat resistant steel castings. The project would have an annual production capacity of 700 metric tons of machined castings worth Rs. 36,400,000. It describes the market potential and demand for such castings from industries like railways, cement, and power. Technical aspects such as the casting process, quality standards, and machinery requirements are covered. Finally, financial projections are given for capital costs totaling Rs. 1,36,93,000, annual production costs of Rs. 3,23,80,950, and expected annual turnover of Rs. 36,400,000, indicating the project would be financially viable.
PROJECT PROFILE ON ALLOY STEEL /HEAT RESISTANT STEEL Casting (UPDATED)
2010-2011
Prepared by :
MSME-DEVELOPMENT INSTITUTE MINISTRY OF MICRO, SMALL, & MEDIUM ENTERPRISES GOVT. OF INDIA 34, INDUSTRIAL ESTATE, NUNHARI AGRA-282006
PROJECT CODE
332302008
QUALITY STANDARD :
As per BIS & customers
Specification
PRODUCTION specialized CAPACITY
700 MT of Machined
MONTHS AND YEAR OF THE PREPRATION
NOVEMBER, 2010
PREPARED BY
Metallurgy Division, MSME- development institute, 34, Industrial Estate Nunihai, Agra- 282006
steel casting @52000/MT
Value Rs.36,40,000/-
INTRODUCTION: Specialized carbons steel/ alloy steel/ heat resistant steel casting are widely used in Infrastructure Development Requirements like Indian Railway, cement Industries. Thermal power stations and fertilizer Industries. These casting requires certain special mechanical properties. As such casting can only be manufactured in the environment with process controls. Such and every process can be monitored and chemical added as and when require by melting in electrically. controlled medium frequency Induction furnace. The project Is focused on value addition in their castings with consistency in mechanical properties, superior microstructure reduced machining allowance and timely supply.
MARKET POTENTIAL: Indian railways rail coach Factories, cement manufactures ore dressing units, fertilizer units and thermal power plants are constantly in need of specialized steel castings. The customers prefer an SSI product because the cost of SSI products is generally less due to less overhead expenses. With the of engineering industries and industrialization India has become the manufacturing hub for M.M.C. who are setting up their production units in India for re-export to their home country, the demand for such castings has increased dramatically. The requirement of this product is inherent and cannot in any way get diluted. Moreover the pollution problems and stringent pollution control mechanics introduced by developed countries has resulted in high manufacturing cost making then unviable in developed countries. Hence, there is a good scope of export of such castings from India. In present scenario India with massive scientific talent, low salary over heads, dry climatic conditions, political in developed countries. There is a excellent scope of export to U.K., Australia and Germany. PRODUCTION TERGETS (PER ANNUM) The project envisages a production of 850 MT per annum of good castings (as castunmachined ) with an installed capacity of 123 MT per annum at 80% efficiency and 5% marching less. BASIS & PRESUMPTIONS :i) ii) iii) iv) v) vi)
single shift of 8 hours/day.
300 working days in year. 80% capacity utilization. Labour wages based on local market conditions and Wages Act. Interest rate for fixed and working capital 13% on an average. Time period for achieving full capacity utilization 3 years.
IMPLEMENTATION SCHEDULE: i) Acquisition of land building ii) Placements of order for machinery iii) Delivery period of machinery iv) Installation of machinery & power connection
4 months 2 months 2 months 2 months 3
v) Arrangements of tools 2 months vi) Clearance from state pollution control board 1 months vii) Arrangements of finance 3 months viii) Arrangement of man power 2 months All activities may be initiated simultaneously and the project may come to commercial production within 6 months. TECHNICAL ASPECTS: i) Process Outline a. Patten Making b. Maudling c. Melting d. Casting e. Felting/grinding/Shot blasting f. Heat treatment g. Machine h. Testing i. Dispatch with final inspection report Pattern making: The patterns are made on basis of the drawing/samples provided by the customers. The pattern making activity may be out sourced also. Maudling: Maudling sand is prepared sand Muller by adding suitable proportions of various additives and the moulds are prepared with help of the pattern.
Melting: The steel scrap is melted in the induction Furnace with addition of predefined mix of Ferroalloys, at a temperature of 1600o c. molten metal is then taken into ladles and poured into the mould. Once the metal has solidified they are knocked out from the mould boxes. Runners risers are knocked out and castings are cleared by hand grinders and sent for shot blasting/felting.
If required the casting undergoes heat treatment in the electrically controlled
Heat treatment furnace. Machining if required is carried out using lathe machine, drill machine, shapers etc. 1. Quality specification: As per BIS and customers specification 2.
5. Pollution control: Since the castings is to be manufactured by furnace the project of 100% ecofriendly. However, it is required to get NOC from state pollution control Board. The pollution due to dust etc. can be reduced by providing a fall out area for the dust within the factory premises Itself. Exhaust fans and chimneys have to be provide at suitable places.
1. Energy Conservation: 1. 2. 3. 4. 5. 6.
Efforts to be made to achieve maximum thermal efficiency of the
furnace. Energy audit of the unit has to be done on regular interval to take suitable step for energy conservation. Arrangement may be made for preheating of charge. The opening furnace has to be closed while not in use. Preventing maintenance and proper maintenance of machines will act towards energy conservation. Strict process control to be done.
FINACIAL ASPECTS: Fixed Cost1. Land and building 10000 sq. ft. (rented) P.M. 2. Machinery and equipments:
Sl.No. Description 1. 500 kg. Medium Furanency Induction furnace with all accessories. 2.
Transformer 400 KW
Ind/Imp Ind
Rs. 15,000
Qty 1
Value (Rs.) 25,00,000
5,00,000 5
3. 4. 5. 6. 7. 8. 9. 10.
11.
12. 13.
14. 15. 16. 17.
18. 19. 20. 21.
Electrical connection/cable etc. E.O.T. Crane 5 MT cap. 20 HP motor Water pump, pipe, line, etc. Cooling Tower Compressor 3 HP Arc Welding M/c 300 Amp. 3 phase Sand mixer (100 kg cap.) with 5 HP. Motor Vibrating sand sieving M/c 3 deeks with sieving and 15 HP motor Hand operated pin lift maulding machine fitted with column. Squeezing arm, plunger and pressure plate. Drying oven oil fired Heat Treatment Furnace (2mx1.5 mxx 1.5 m) electrically controlled Bench grinder double Ind ended with 2 HP motor Flexible shaft grinder Swing frame grinder with 10 HP motor Bench Drilling machine 20 mm cap with HP motor. Preumatic grinder Patterns Ladies of cap 10 kg to 70 kg (self fabricated) Maudling boxes
3,00,000 2,00,000 2,000,00
1.No. 1 No
1,00,000 1,00,000 30,000
2 Nos.
60,000
1 No.
30000
1 No
2,00,000
1.No. 1 No.
50,000 2,50,000
1 No
15,000
2 No. 1 No.
20,000 50,000
1 No.
15,000
1 No. 5 Nos.
5,000 10,000 1,00,000
LS
1,00,000 6
22. 23. 24. 25. 26. 27 28. 2.(B) 29. 30.
31. 32.
33.
34. 35. 36. 37.
38.
Foundry & moldings
tools Material Handing equipments Felting and cutting Tools Lathe machine 12 feet Lathe machine 10 feet Lathe machine feet Weighing machine 200 kg cap. laboratory and Testing Equipments : Chemical analysis equipments Sand testing like permeability meter, speedy moisture tester etc. Hardness tester (Brinal) Metallographic metallurgical microscope Specimen polishing machine (double disc type)
LS
20,000
LS
10,000
LS 2 Nos. 1 No. 1No. 1 No.
20,000 60,000 25,000 15,000 20,000
LS
70,000
LS
25,000
1 No. 1 N0.
15,000 30,000
1 No.
20,000
Lzod/Chapy impact tester Immersion pyrometer Measuring/Inspection tools Pollution Control equipments (Exhaust/chimney etc.) Energy conservation equipments Installation &
1 N0.
50,000
1 N0. LS
25,000 25,000
LS
25,000
3,78,000 7
electrification @ 10% of machine & equipment Total cost of machinery & equipment Cost of tools & Fixtures Cost of office equipments/table/chair Preoperative expenses
61,58,000 LS LS
30,000 50,000 30,000
Total fixed capital
3. Working Capital (per month): 1) Personal: Sl. Description NO. A) Administrative & supervisor 1. Manager 1. 2. 3. 4. 5.
Engineer Supervisor Accountant (part time) Clerk cum typist
Total recurring expenditure per monthI+II+III+IV= Total Working capital for 3 months Total capital Investment: Fixed capital Working capital for 3 months
Machinery Utilization: The capacity utilization is considered to be 80% of the installed capacity.
FINACIAL ANALYSIS: Cost of production (per month) 1. Total recurring cost expenditure per year Rs. 2,97,00,000 2. depreciation on machinery, furnace, tools & Fixtures & office equipments @ 10% Rs. 6, 27,000 3. Interest on total capital investment @ 15% Rs. 20, 52,950 Total cost of production per annum: Rs. 3,23,80,95 ii. Turnover (per annum): 9
700 MT of machine specialized steel castings @Rs. 52,000/MT
iii. Net Profit per annum:
Total sales-total cost of production
Rs. 3, 64, 00,000
Rs.
40, 19,000
Net Profit Ratio:
Net profit X100 Turnover
= 11%
Rate of return (on investment):
Net Profit X100 Total investment
4,890
= 29%
Break Even Analysis:
Fixed Cost (per annum) a)
Total Depreciation on m/c & equipment, tools
& fixtures, office equipments etc, b) Rent c) Interest on total capital investment d) Insurance etc. e) 40% of other contingent wages f) 40% of other contingent expenses Total fixed cost Break even Point: Fixed cost X100 Fixed cost profit
