Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

Dpc Wire
PRODUCT CODE (ASICC) : 77472

QUALITY AND STANDARDS : IS 6162 (Part 1) : 1971

IS 7404 (Part 1) : 1991

Production Capacity : Quantity: 600 MT (per annum)

Value : Rs. 75,405,000

YEAR OF PREPARATION : 2002 _ 2003

PREPARED BY : Small Industries Service Institute

Vikas Sadan, College Square
Cuttack - 753003
and
Office of the Development Commissioner
Small Scale Industries
Electrical and Electronics Division ,
7th Floor,
Nirman Bhavan ,
New Delhi - 110 011.

Introduction

The Double paper covering/transformer winding conductor (paper covered) basically used in
winding purpose specially for HT and LT windings of Transformers as primary and secondary
windings for the purpose of electromagnetic induction by producing alternating flux whose
amplitude depends on the primary voltage and number of turns in each winding.

Market Potential

The demand for DPC/TWC is directly related to the production of power and distribution of
transformers, which in turn related to power generation capacity of the country. The electricalpower
supply industry grew from 1367 MW in 1947 to 10036 MW by the end of 2000 with capacity
addition of 3000 MW on an average, each year posing a growth rate of 6.7%. Consequently the
power and distribution transformer also grew from 14000 MVA in 1975 to 49000 MVA
approximately in 1998 - 99, emphasising that the faith of the transformer industry depends upon the
power generation capacity, which is directly co-related with capacity addition to power capacity. It is

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

well, understood that the country as a whole is power deficit, at present and there is prospect of
almost doubling the capacity of existing transformers consequently the demand for DPC/transformer
winding conductors is bound to increase.

Basis and Presumptions

i) The basis for calculation of production capacity has been taken on single shift basis on 75%
efficiency.

ii) The maximum capacity utilization on single shift basis for 300 days a year. During first year and
second year of operations the capacity utilization is 60% and 80% respectively. The unit is expected
to achieve full capacity utilization from the third year onwards.

iii) The salaries and wages, cost of raw materials, utilities, rents, etc. are based on the prevailing
rates in and around cuttack. These cost factors are likely to vary with time and location.

iv) Interest on term loan and working capital loan has been taken at the rate of 16% on an average.
This rate may vary depending upon the policy of the financial institutions/agencies from time to
time.

v) The cost of machinery and equipments refer to a particular make / model and prices are
approximate.

vi) The break-even point percentage indicated is of full capacity utilization.

vii) The project preparation cost etc. whenever required could be considered under pre-operative
expenses.

viii) The essential production machinery and test equipment required for the project have been
indicated. The unit may also utilize common test facilities available at Electronics Test and
Development Centres (ETDCs) and Electronic Regional Test Laboratories (ERTLs) and Regional
Testing Centres (RTCs).

Implementation Schedule

The major activities in the implementation of the project has been listed and the average time for
implementation of the project is estimated at 12 months:

Period (In
Sl.No. Activity
Months)
1. Preparation of project report 1
2. Registration and other formalities 1
3. Sanction of loan by financial institutions 3
4. Plant and Machinery:

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a) Placement of orders 1
b) Procurement 2
c) Power connection/ Electrification 2
d) Installation/Erection of machinery/Test
2
Equipment
5. Procurement of raw materials 2
6. Recruitment of Technical Personnel etc. 2
7. Trial production 11
8. Commercial production 12

Notes

1. Many of the above activities shall be initiated concurrently.

2. Procurement of raw materials commences from the 8th month onwards.

3. When imported plant and machinery are required, the implementation period of project may vary
from 12 months to 15 months.

Technical Aspects

Process of Manufacture

The process of manufacture of Double Paper Covering (DPC)/Transformer Winding Conductors

(TWC) (Paper covered/Cotton blended), involves the following steps:

1. Drawing of aluminium/Copper rod into the required size (3 mm dia) in continuous wire drawing
machine.

2. Wire drawing in medium wire drawing machine (1/SWG to 16 SWG)

3. Wire drawing in fire wire drawing machine (16 SWG to 22 SWG)

4. Making fire Gauge wires

5. Double Paper covering/cotton braiding in DPC machine

6. Wounding in spools

7. Inspection and Testing and finally

8. Packing and Despatching.

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

Process Flow Chart for DPC

Aluminium Copper Wire Rod

Pointing

Wire Drawing (3.00mm Dia) in

Continuous Wire Drawing

M/C

Wire Drawing In Medium Wire

Drawing M/C (11swg To 16 Swg)

Fine Gauge Wires

Cotton Brading/Double Paper

Containing IN Dpc M/C

Dpc (Twc) Wires

Inspection and Testing

Packing and Despatch

Alternatively the entrepreneurs can purchase fine gauge Aluminium/Copper wires from market as
raw material and do DPC work. By this investment on plant and machinery can be reduced,
substantialy since the cost of wire drawing machine can be eliminated.

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Quality Control and Standards

Since it is used in electrical industries purity of aluminium and copper wire should be 99.9%. The
quality of DPC wires produced can be controlled by strictly following related IS specification right
from beginning of the process that is from raw material to finished goods. The related IS
specifications are:

i) For Aluminium paper covered Round wire: IS 6162 (Part 1): 1971

ii) For Copper paper covered lead wire: IS 7404 (Part 1): 1991

Production Capacity (per annum)

Quantity : 600 MT
Value : Rs. 7,54,05,000
Motive Power 75 kVA.

Pollution Control

The Government accords utmost importance to control environmental pollution. The small-scale
entrepreneurs should have an environmental friendly attitude and adopt pollution control measures
by process modification and technology substitution.

India having acceded to the Montreal Protocol in September, 1992, the production and use of Ozone
Depleting Substances (ODS) like Chlorofluore Carbon (CFCs), Carbon Tetrachloride, Halons and
methyl Chloroform etc. need to be phased out immediately with alternative chemicals/solvents. A
notification for detailed Rules to regulate ODS phase out under the Environment Protection Act,
1986 have been put in place with effect from 19th July 2000.

Energy Conservation

With the growing energy needs and shortage coupled with rising energy cost, a greater thrust in
energy efficiency in industrial sector has been given by the Government of India since 1980s. The
Energy Conservation Act, 2001 has been enacted on 18th August 2001, which provides for efficient
use of energy, its conservation and capacity building of Bureau of Energy Efficiency created under
the Act.

The following steps may help for conservation of electrical energy:

i) Adoption of energy conserving technologies, production aids and testing facilities.

ii) Efficient management of process/manufacturing machineries and

systems, QC and testing equipments for yielding maximum Energy Conservation.

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iii) Optimum use of electrical energy for heating during soldering process can be obtained by using
efficient temperature controlled soldering and de-soldering stations.

iv) Periodical maintenance of motors, compressors etc.

v) Use of power factor correction capacitors. Proper selection and layout of lighting system; timely
switching on-off of the lights; use of compact fluorescent lamps wherever possible etc.

Financial Aspects

A. Fixed Capital

(1) Land and building (Rs.)

i) Land 5000 Sq.ft @ Rs.50 2,50,000
Built up area:
a) Working shed 40x80 3200 Sq.ft. @ Rs.150per Sq.ft 4,80,000
b) Office, Store etc. 30x30 Sq.ft = 900 sq.ft @ Rs.200per sq.ft. 1,80,000
Total 9,10,000

Note: Alternatively, the premises can be on rental basis as per market value of the area.

(ii) Machinery and Equipments

Ind./ Qty.
Sl.No. Description Amount(Rs.)
Imp. (No.)
Wire drawing machine 3 dies
1. Ind. 1 set 3,60,000
with spooling
Medium Wire drawing machine
2. Range (11-16 SWG 6 Dies) with Ind. 1 set 1,10,000
spools
Fine wire drawing machine
3. Range (16-22 SWG), 5 Dies 1 Set 75,000
with Spools Ind.
4. Strip Flattering Machine Ind. 1 Set 65,000
5. Strip covering Machine Ind. 1 60,000
DPC wire covering machine
6. 4 set 2,08,000
@Rs. 52,000 4 line each Ind
Paper slitting machine 30"
7. cutter size range 4mm- 20mm 1 1,20,000
Ind.

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Paper role slitting machine 42

8. Ind. 1 55,000
inch size
9. Vaccum Annealing Ind. 1 40,000
10. Weight Bridge 2 MT Ind. 1 20,000

Total 11,13,000

Testing Equipments

Sl. Ind./ Qty. Amount

Description
No. Imp. (No.) (Rs.)
1. Tensile Testing Machine Ind. 1 1,60,000
2. Industrial Kiln bridge Ind. 1 75,000
3. Avometer, Multimeter Ind. 1 each 15,000
Wrapping Testing
4. Ind. 1 15,000
Machine
5 . Misc. Ind. 10,000
Pollution control
6. Nil
equipment
Total 2,75,000
Ind./ Qty. Amount
Sl.No. Description
Imp. (No.) (Rs.)
Other Fixed Assets
Energy conservationfacilities/equipment Nil
Electrification and installation charges @ 10%
1,11,300
of cost of machine and equipment
Total Cost of Machinery and Equipment 14,99,300
Cost of Moulds/Dies/ Other fixtures 20,000
Cost of Office equipment/ working table etc. 30,000
Total 15,49,300
(iii) Pre-operative Expenses (Project cost/Non refundable 5,700-00
deposit)
Total Fixed Capital 24,65,000

B. Working Capital (per month)

(i) Personnel

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 Released By: The Development Commissioner (SSI), Ministry of SSI, New Delhi

Sl. Salary Amount

Designation No.
No. (Rs.) (Rs.)
1. Manager 1 5,000 5,000
2. Marketing executive 1 3,500 3.500
Clerk-cum- Accountant- Store
3. 2 2,500 5,000
Keeper
4. Peon/ Watchman 2 1,600 3,200
5. Production Engineer 1 4,000 4,000
6. Skilled workers 2 2,500 5,000
Un-skilled workers/Semi- skilled
7. 3 1,800 5,400
workers
Total 31,100
Perquisites @ 15% of salaries 4,665
Total 35,765

(ii) Raw Material

Qty. Rate/ Amount

Sl.No. Description
(MT) MT(Rs.) (Rs.)
Aluminium Rod EC
1. 22.5 MT 95,000 21,37,500
Grade
2. Copper wire Rods 22.5 1,35,000 30,37,500
Kraft paper/ Insulating
3. 5 MT 95,000 4,75,000
paper
4. Stores/ Spares LS 20,000 20,000
Total 56,04,125
(iii) Utilities (per month) (Rs.)
Power 75 kWh units @ Rs.4.60 38,605
Water Charges 1,000
Total 39,605
(iv) Other Contingent Expenses (per month) (Rs.)
(i) Postage, stationery 1,000
(ii) Telephone 1,000
(iii) Repair and Maintenance 2,500
(iv) Transport charges 2,500
(v) Advertisement and publicity 2,000
(vi) Insurance 2,000

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(vii) Misc.expenses 1,000

Total 12,000

(v) Total Recurring Expenditure (per month)

35,765 + 56,04,125 + 39,605 + 12,000 = 56,91,495

(vi) Working Capital (for 3 Months)

3 x 56,91,495 = Rs. 1,70,74,485

C. Total Capital Investment

a) Fixed capital 24,65,000

b) Working capital (for 3 months) 1,70,74,485
Total 1,95,39,485

Financial Analysis

1. Total Cost of Production (per year) (Rs.)

(i) Recurring expenditure 6,82,97,940
(ii) Depreciation on building @ 5% 45,500
(iii) Depreciation on Machinery 11,40,500
(iv) Depreciation on Mould and Fixtures @ 25% 5,000
(v) Depreciation on office equipment @ 20% 6,000
(vi) Interest on total investment @ 16% 31,26,318
Total 7,26,21,258

(2) Turnover (per year)

Rate
Item Qty. Value (Rs.)
(Rs.)/MT
(i) Aluminium Paper covered
268.5MT 1,20,000 3,58,20,000
Round wire
(ii) Copper paper covered Round
268.5 1,60,000 4,77,60,000
wire
(iii) Scrap (Aluminium) 1.5 60,000 90,000
(iv) Scrap (Copper) 1.5 90,000 1,35,000
Total 8,38,05,000

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Note: The turn over has been calculated on the basis of 12 SWG wires.

(3) Net Profit (per year) (Before Income Tax)

= Turnover _ Total cost of production

= Rs. 8,38,05,00 _ 72,621258
= Rs. 1,11,83,742

(4) Net Profit Ratio

= Net profit per year x 100

Turnover per year

= 1,11,83,742 x 100

8,38,05,000

= 13.34%

(5) Rate of Return

= Net profit per year x 100

Total investment

= 65,27,742 x 100

1,86,39,485

= 35%

(6) Break-even Point (% of Total Production Envisaged)

Fixed Cost (Rs.)

Depreciation on machinery and equipment, tools and jigs and
(a) 11,51,500
fixture and office equipment
(b) Rent or Depreciation on Building 45,500
(c) Interest on total investment 31,26,318
(d) Insurance 24,000
(e) 40% of Salary and wages 1,71,672
40% of other contingent expenses (Excluding rent and
(f) 48,000
Insurance)

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Total 45,66,990

E.E.P.

= FC x 100

FC + Net profit

= 45,22,990 x 100

45,66,990+ 11183742

= 45,66,990

15750732

= 29%

Additional Information

a. The Project Profile may be modified/tailored to suit the individual entrepreneurship

qualities/capacity, production programme and also to suit the locational characteristics, wherever
applicable.

b. The Electrical Technology is undergoing rapid strides of change and there is need for regular
monitoring of the national and international technology scenario. The unit may, therefore, keep
abreast with the new technologies in order to keep them in pace with the developments for global
competition.

c. Quality today is not only confined to the product or service alone. It also extends to the process
and environment in which they are generated. The ISO 9000 defines standards for Quality
Management System and ISO 14001 defines standards for Environmental Management System for
acceptability at international level. The unit may therefore adopt these standards for global
competition.

d. The margin money recommended is 25% of the working capital requirement at an average.
However, the percentage of margin money may vary as per bank's discretion.

Addresses of Machinery, Equipment and Raw Material Suppliers

Wire Drawing Machine

1. M/S. Hind Engineering Works

2, Kundan Lane, Liluah, Howrah-711204.

2. M/s. New Bishbakrtima Mechanical Works (P) Ltd. 24/5, Brindaban Mullick Lane, Kadamtala,

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Howrah-711 101

3. M/s. Bharat Engg. Works 243, Chittaranjan Avenue, Kolkata.

4. M/s. Pipalia Engineering Works (P) Ltd. Post. Pipalia Kalan, Distt. Pali,
Rajasthan- 306307

5. M/s. Golden Engineering Industries 8797, Shidipura, Rani Jhansi Road,

New Delhi-110 005.

6. M/s. Sampat Engineering Ltd. Deora Avenue, Mithakhati Road, Navarangpura,

Ahmedabad-380009

7. M/s. Super Cable Machines India Pvt. Ltd. Choudhury Villa, 1, Shastri Nagar,
Ahmedabad-382440.

8. M/s. Prem Udyog Pvt. Ltd. Station Road, Vatva, Ahmedabad-382440

9. M/s. Nihar Engineering and Sons 11/1, Kundan Lane, Liluah,

Howrah-711204

Paper Covering Machine

1. M/s. Machine Tools Works Kolkata

2. M/s. S.K. Fabricators Pvt. Ltd. Kolkata, 16, Mandal Templer Lane, New Alipur,
Kolkata-7

3. M/s. Global Merchantiles Pvt. Ltd. 10, Ulive Road, Kolkata

4. M/s. Patel and Co. Nuapatna, Cuttack.

Testing Machine

1. M/S. Bluestar Ltd. 7 Hart Street, Kolkata Tel: 2480131

2. Scientific Testing India

2/5, Phase-II, DSIDC Campus, NEW DIC, Bus Depot, Nandanagari, Delhi-110 093

3. M/s. Hargolal and Sons Ambala Cantt, Harayana-133011

(Choke for Aluminium Conductor)

4. M/s Oriental Science Apparatus Workshop, Jawaharlal Nehru Marg, Ambala Cantt, 133001.

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Other Misc. Machinery

1. M/s. Devendra Industries 230, Village Nanglisakrwati, Najafgarh, New Delhi-110 043.

2. M/s. Sampat Heavy Engineering Company 4B & C, Arehana Industrial Estate, Opp. Ajit Mills,
Ahmedabad-360 023.

3. Hind Engineering Works 2, Kundan Lane, Liluah, Howrah

4. The National Small Industries Corporation Ltd. Link Road,

Cuttack.

Raw Material Suppliers

1. M/s. N A L C O
Aluminium Roads and Alloys Rods, NALCO House, Nayapalli, Bhubaneswar.

2. M/s. Bharat Aluminium Co. Ltd. Chattarjee International Centre, 33A, Jawaharlal Nehru Row,
Kolkata_71,

3. M/s. Aluminium Corporation of India Ltd. 7, Camel House Street, Kolkata.

4. HINDALCO Industrial Ltd. Birla Building, T/1, R. N. Mukherjee Road,

Kolkata-1.

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