INDOTHERM EQUIPMENT CORPORATION

Project Report
200MT / Month (Min) Production of
Secondary Aluminium Ingot Plant

Secondary Aluminum Production, Aluminum Recycling,

Aluminium Scrap/ Chip Recycling Waste Recycling

Manufacturing Fuel Efficient Furnaces Since 1987’

Plot No: 1, Phase II, SSI Complex, Karkhana Bagh Ind.

Area Sec 20 Faridabad-121002 HR
www.indotherm.co.in|[email protected]|
M: +91-9711141615,+91 -9711 590 890
INDOTHERM EQUIPMENT CORPORATION
 INDOTHERM EQUIPMENT CORPORATION

Aluminum Ingots from Aluminum Scrap

An Investment Project Opportunity for Startups and
Entrepreneurs

INTRODUCTION
Aluminum plays a major Role in the modern world through its innumerable application,
because of its intrinsic and versatile properties of lightness, strength to weight ratio,
corrosion résistance, electrical and thermal conductivity, no toxicity etc.

Secondary Aluminum Production is the process of recycling, aluminum scrap into aluminum
that can be used again- an environmentally sound process that is 92% more energy efficient
than primary production.

In fact, aluminum scrap recycling has proven so valuable – both economically and
ecologically – that recovery and recycling has become its own industry, and a highly
successful one.

The aluminum industry work hard to encourage consumer recycling by educating the public
and advocating for the expansion of municipal recycling programs.

The recycling of aluminum generally produces significant cost savings over the production
of new aluminum, even when the cost of collection, separation and recycling are taken into
account.

Over the long term, even larger national savings are made when the reduction in the capital
costs associated with landfills, mines, and international shipping of raw aluminum are
considered.

Aluminum Ingots are produced through the smelting process. Various grades of ingots are
produced which are used for production of castings in auto industry as well as electrical
applications. Ingots of various dimensions with maximum purity of 99.7 %.Ingots are the
material that is cast into shape suitable for further processing. Ingots usually require a
second procedure ofshaping, such as cold / hot working, cutting or milling to produce a
useful final product. Aluminum ingots are remelted and further processed into a larger
number of products for various downstream applications.

Aluminum ingots can be used in different sectors, including automotive, household

appliances lighting, construction, mechanics and household goods. The ingots are sent top
other process or flattened into thin sheets, which are then used to make new cans.

Aluminum is becoming a favourite with architect sand builders opening up potential for
increasing use of metal in the construction industry. Likewise, the use of the metal is
increasing in the auto sector.

From around 2.4 mn tone of demand in 2018-19, and is projected at close to 3.4 mn tone by
2024-25. In view of the above the market potential for Aluminum castings is good and also
expected to be bright in near future.
 INDOTHERM EQUIPMENT CORPORATION

Indotherm Equipment Corporation Can Provide Detailed Project Report

on Aluminum Ingots From Aluminum Scrap Major Queries / Questions
Answered In The Report

What is Aluminum Ingots from Aluminum Scrap industry?

How has the Aluminum Ingots from Aluminum Scrap industry performed
so far and how will it perform in the coming years?
What is the Project Feasibility of an Aluminum Ingots from Aluminum
Scrap?
What are the requirements of Working Capital for setting up an Aluminum
Ingots from Aluminum Scrap?
What is the structure of the Aluminum Ingots from Aluminum Scrap
business and who are the key/major players?
What is the total project cost for setting up Aluminum Ingots from
Aluminium Scrap?
What are the operating costs for setting up an Aluminum Ingots from
Aluminium Scrap?
What are the machinery and equipment requirements for setting up a
Aluminium Ingots from Aluminium Scrap?
Who are the Suppliers and Manufacturers of Plant & Machinery for setting
up An Aluminum Ingots from Aluminium Scrap?
What are the requirements of raw material for setting up anAluminum
Ingots from Aluminium Scrap?
Who are the Suppliers and Manufacturers of Raw materials for setting up
an Aluminum Ingots from Aluminium Scrap?
What is the Manufacturing Process and Formulations of anAluminum
Ingots from Aluminium Scrap?
What is the total size of land required for setting up anAluminum Ingots
from Aluminium Scrap?
What will be the income and expenditures for an Aluminum Ingots from
Aluminium Scrap?
What are the Projected Balance Sheets of an Aluminum Ingots from
Aluminium Scrap?
What are the requirement of utilities and overheads for setting up a
Aluminium Ingots from Aluminum Scrap?
What is the Built up Area Requirement and cost for setting up an
Aluminum Ingots from Aluminium Scrap?
What are the Personnel (Manpower) Requirements for setting up a
Aluminium Ingots from Aluminum Scrap Business?
What are Statistics of Import & Export for Aluminum Ingots from
Aluminium Scrap?
What is the time required to break-even?
What is the Break-Even Analysis of Aluminum Ingots from Aluminum
Scrap?
 INDOTHERM EQUIPMENT CORPORATION

What are the Project financials of an Aluminum Ingots from Aluminum

Scrap?
What are the Profitability Ratios of an Aluminum Ingots from Aluminum
Scrap plant?
What is the Sensitivity Analysis-Price/Volume of an Aluminum Ingots from
Aluminum Scrap?
What are the Projected Pay-Back Period and IRR of an Aluminum Ingots
fromAluminum Scrap?
What is the Process Flow Sheet Diagram of an Aluminum Ingots from
AluminumScrap?
What are the Market Opportunities for setting up an Aluminum Ingots
from Aluminum Scrap?
What is the Market Study and Assessment for setting up an Aluminum
Ingots from Aluminum Scrap?
What is the Plant Layout for setting up an Aluminum Ingots from
Aluminum Scrap Business?
 INDOTHERM EQUIPMENT CORPORATION

Contents Page No
1. Introduction
Uses & Application
2.1 Aluminum in Electrical
2.2 Aluminum in Transportation
2. 2.3 Aluminum in Building & Architecture Sector
2.4 Consumer Durable
2.5 Channing & Packaging
2.6 Competing Material
Properties of Aluminium
3. 3.1 Optical Properties
3.2 Chemical Properties
4 B.I.S Specification

5 Market Survey
Financials & comparison of Major India Players/
Companies
6.1 Name of the company with contact details
6.2 Name of Directors
6 6.3 Plant capacity
6.4 Location of plant
6.5 Capital Expenditure Projects
6.6 Name of Raw Material consumed with Quantity &
cost
7. Present Manufacturer

8. Manufacturing Process

9. Process Flow Diagram

10 Suppliers of Raw Materials

Machinery, Raw Material & Product Photographs
11.1 Machinery Photograph
11. 11.2 Raw Materials photograph
11.3 Product Photo graphs
11.4 Plant Layout
 INDOTHERM EQUIPMENT CORPORATION

PRODUCT APPRX
S.NO PRODUCT DESCRIPTION SPECIFICATION CODE
.WT
%(Ti
% Al Purity % Si % Fe %Ga %Zn
+V)
Remainder.
EC Grade Aluminum %V=
10/20 %Al.=100 ≤0.1 ≤0.2
01 Aluminum Ingot ( ≤0.03 ≤0.04 ≤0.03 IE 07
Kg %(Fe+Si+ 0 0
Ingot IE07) only
V+Ga+Zn)
EC grade Aluminum
10/20 99.600to ≤0.1 ≤0.3
02 Aluminum Ingot ( ≤0.02 - - IE 10
Kg 99.799 3 0
Ingot IE10)
EC Grade Aluminum ≤0.1
10/20 ≤0.1
03 Aluminum Ingot ( ≥99.500 5
≤0.02 - - IE 20
IE20) Kg 5
Ingot
CG Grade
Aluminum
Ingot Aluminum
(Confirming 10/20 99.000- >0.1 >0.3
04 Ingot ( >0.02 - - IE 20
tone or more IE20) Kg 99.499 5 5
of the
specifications
Given)

LIST OF ABBREVIATIONS+

Abbreviation Expanded Form Abbreviation Expanded Form

Al Aluminum Imp Impurities

Approx. Approximate Max Maximum

CG Commercial Grade Min Minimum

EC Electrical Conductor OI Other Impurities

Fe Iron Si Silicon

Ga Gallium Sl.No Serial Number

V Vanadium Ti Titanium
 INDOTHERM EQUIPMENT CORPORATION

PROCESS FLOW CHART

Receipt of imported
Virgin Metal

Container wise
Scrap
Stored in Bins

Sorting, Segregating & Other impurities (if

Removing the material any), to be stored

Through Spectro
Analysis of
Segregated

Noting the Weight

of the Materials

Melting Fluxing & Removal of ’Fe’ In- Process Addition of

Material Drowsing Content from the Spectro Alloy Element
Analysis at
various
Stages
In-process Addition of Alloy
sample Elements
Analysis

Degassing,
Refining &
Fluxing

Casting Filtration Casting Ingots

Final
TESTED OK Spectro Not ok

Punching of Removing Flashes

Heat No.s on (Blunding/ Weightment Warehousing
the ingot BILLING
Staking)

DISPATCH/ SALE OF GOODS

Dir
 INDOTHERM EQUIPMENT CORPORATION

PARAMETERS FOR ALUMINUM ALLOYS PLANT

S.NO Description Parameters
1. Production of Plant (Min) 200 MT / Month
2. No. of Days of Production 26
3. Production / Day 7-8
4. Furnace required 01
5. Raw Material Aluminium Scrap, secondary Aluminium
ingot, ingredients etc.
6. Finished Goods Secondary Aluminum Ingot
7. Oil Consumption 100-110 Liters/Ton /Raw Material
8. Gas Consumption 100cm³/ Ton/ Raw Material

IMPLEMENTATION SCHEDULE
S.NO Nature Of Activity Time period in month
1. Project & Approval 0-1
2. SSI Provisional registration 0-1
3. Approaching for finance 1-2
4. Clearance for Pollution Control 2-3
Board
5. Placement of Order for delivery of 2-3
Machinery
6. Installation of Machinery 3-4
7. Power Connection 3-4
8. Trial Run 4-5

Note: If you start working in the first month, the plant will be able to run
in 5-6 months.

Alloy SI% FE% Cu% Mn% Mg% Zn% Ni% Pb% Sn% Ti%
ADC12 9.6-12 0.90 1.5-3.5 0.50 0.30 1 0.5 0.10 0.30 0.10
Alsi132 11-12.5 0.1 3.4 0.50 0.30 1.40 0.30 0.15 0.10 0.20
LM24 7.5-9.5 1.30 0.10 0.5 0.3 3 0.5 0.30 0.20 0.20
LM6 10-13 0.60 0.10 0.50 0.10 0.10 0.10 0.10 0.05 0.20
LM9 10-13 0.60 0.10 0.30- 0.1 0.1 0.1 0.1 0.05 0.20
0.70
LM25 6.5-7.5 0.5 0.20 0.20 0.10 0.10 0.10 0.05 0.05 0.20
LM16 4.5-5.5 0.60 1-1.5 0.50 0.10 0.10 0.10 0.10 0.05 0.20
LM13 10-13 1 0.7 0.50 1.5 1.5 1.5 0.10 0.10 0.20
LM4 4-6 0.80 2-4 0.2- 0.50 0.50 0.50 0.10 0.10 0.20
0.6
LM2 9-11.5 1 0-7-2.5 0.50 2 2 2 0.30 0.20 0.20
 INDOTHERM EQUIPMENT CORPORATION

APPLICATION OF QUALITY PRODUCTS

For automobile Industries- Gravity Die Casting, Pressure Die Casting

For Engineering Industries- machineries spares Casting.
For Electrical Industries- for Locks, Clamps, Panels Heat shrinks etc.
For Aluminum extrusion Plant(LM0 Alloy)

REPROCESSING INGOTS FROM DROSS, TURNING, UBC, FOIL ETC.

1. 96% reprocessing ingots

2. 97% reprocessing ingots as well as deoxidant for steel industry.
3. 98% reprocessing ingots as well as deoxidant for steel industry.

APPLICATION OF QUALITY PRODUCTS:

1. For Aluminum powder mfg. unit

2. For Aluminum utensils mfg.unit
3. For Aluminum rolling Mill& steel melting practice as a deoxidant.
4. For Aluminum Alloy mfg. unit.

FINANCIAL ASPECTS

1. AREA REQURIED: - Area Required: 1000/Sq.mtr

2. Power Required: 70 HP

2. Machinery & Equipment

S.NO Machinery Description Qty. Quotation
01 Rotary Furnace Capacity -03 Ton Per Batch Complete 01 1100000.00
With Combustion System And Moterized Gear
Rotating System
02 Ingot Casting Conveyor Complete With 120 Moulds. 01 10,50,000.00
03 Air Pollution Control System Complete With Id Fan 01 9,50,000.00
And Chimney 70 Ft.
04 Service Tank(1.5KL) & Accessories 01 85,000.00
05 Oil Heating Unit 01 1,20,000.00

33,05,000.00

Note:
! Spectrometer, Weighing Scale and DG Set cost are not included in our scope.!
! Pollution Control system will be customized as per customer requirements.

Total fixed capital cost for Machinery & Equipment (RS.): =33, 05,000.00
 INDOTHERM EQUIPMENT CORPORATION

3. AS PER REPORT, JUNE-2021

WORKING CAPITAL (RAW MATERIAL FOR 156 MT Manufacturing COMMERCIAL INGOT):-

Raw Material cost = 140 Rs/Kg (±5%)

(Scrap : Alloy scrap, UBC , Cutting wire, Bottle Caps, Foils , Taint ,Tabor , Litho Sheets, Tense
Casting, Zorba Scrap)

Note: All aluminium scrap materials have different prices, so we have prepared this report
based on the

Average Price of aluminum scrap given above.

4. Processing Cost (Manufacturing cost)

Cost of Aluminium Scrap converting in to Ingot = 10.42Rs. /Kg (±10%)
WAISTAGE 3% = 4.20 Rs. /Kg
TOTAL = 14.62 Rs. /Kg
Note:
If we make Alloy, then Additional Material Cost will be extra. (Its depend on
company Quality Policy & Brand).
For Factory Administration & Commercial expenses will be extra.

Example: (Total Wt x Cost of Scrap x Conversion Kgs.)

A) Total raw material Cost for 156 MT = (156 x 140 x 1000) = 2,18,40, 000/-
B) Manufacturing Labor Cost /wastage month = (156 x 14.62 x 1000) = 22, 80,720/-

Working Capital cost (A+ B) per Month = 2, 41, 20,720/-

CAPITAL REQ. FOR 2 MONTH CYCLE = 4, 82,41,440.00

FINANCIAL ANALYSIS:- AS PER REPORT JUNE-2021

Selling Rate of Alu. Ingot : 162-165 Rs. /Kg (According to Quality & Grade)

Note:
Report Rate according to LME (LONDON METAL EXCHANGE) 6 to 7% Profit Margin.
If we go for more production and quantity with automated plant then manufacturing cost
will be lower and quality will improve.

Manufacturing Cost per Ton for mfg. Alu. Ingot = 22,80,720/Ton

cost of RAW/SCRAP ALUMINIUM per Month (156MT) = 2, 18, 40,000/-
TOTAL COST OF MANUFACTURING OF INGOT IN MONTH = 2,41,20,720.00
Working capital for (1 Month x 2cycles) initially = INR 4,82,41,440 /-

Note:
We have to need at least 2 month's Times working capital in advance to run a plant initially. (E.g. to
continue for Purchase , Production & Sale cycle)
 INDOTHERM EQUIPMENT CORPORATION

TOTAL CAPITAL INVESTMENT

1. Working Capital for 2 times : - RS: 4,68,52,000.00/-

2. Fixed Capital :- RS: 48,45,000.00 /-
RS: 6, 54, 95,000.00/-

SCRAP TRADERS LIST

01 BAFNA TRADING COMPANY Mr. Bafnaji +91-9967788005

02 Mehta trading company Mr. Amit Kothari +91-98332 24907

03 Jainaim Metals Mr.ShaileshBhai +91-93222 44328

04 MaitriImpex Mr. Sharma Ji +91-98237 38197

05 Merdian Metal Mr. Pankaj Jain +91- 98443 07211

06 Mataji Metal Trading : Pune Mr.Naresh +91- 99231 13555

07 Bothra Metals Mr. SundarlalBothra +91-22-220 8501 7

08 Jai Impex, Bhiwandi Mr. Jai Bhandari +91- 98673 84527

09 Bhiwandi Mr. Ajay Bhai +91- 92256 68980

10 Star Innovation,Indore Mr.Giriraj +91-98266 34333

11 Viddhi Industries Mr.Vijay +91- 98922 94333

12 Yash Metal :Aurangabad Mr.Jamil +91-8055555508

13 Sani Metal: Aurangabad Mr.Salman +91-9595301060

14 Bharat metal: Pune Mr. Malaram +91-95450 32555

15 Kothari metal for silicon Mr. Dinesh Kothari +91-93222 60696

16 Chamunda Trading Co.: Pune Mr.Aggarwal +91-9579832235

17 Ambika Metal: Bhivandi Mr.Abhishek Jain +91-98205 08607

18 Raj ShinaPatil&Co. Pune Mr. Patil +91-98220 00086

19 S M Metal: Aurangabad Mr.Afjal +91-90493 89183

20 SairajMetal:Aurangabad Mr.Nitin +91-96737 01222

21 Shreeji Steels & Metals: Surat Mr. Nitinbhai +91-97265 52093

 INDOTHERM EQUIPMENT CORPORATION

POTENTIAL BUYER’S NAME

01 Endurance limited, Aurangabad

B-2 M.I.D.C. waluj,
Mr. ShriHari +91-240-2554373/2564864)

02 Bajaj electrical, Pune

Chakan M.I.D.C.
Mr.Arun Shine +91-98233 37320

03 IAI industries,Mahalunge
M.I.D.C. chakhan,Pune -Mr.Pradhan +91-93261 76421

04 Marathwada Auto components ltd, Aurangabad.

M.I.D.C. Waluj.
Mr. Bhale +91-99220 17499

05 Quality engineers,pune
Bhosari M.I.D.C.
Mr. DharamBhora +91-93706 47455

06 Naresh engineers, Aurangabad.

M.I.D.C. Waluj
Mr. Bude +91-93251 35001

07 OMR Bagla Ltd, Aurangabad.

M.I.D.C. Chitegaon
Purchase Manager 0240-2329457&58

08 SaikripaEnterprises,Pune
Bhosari M.I.D.C.
Mr. Biradar +91-98226 66723

09 Vinayak die cast,Nasik

Ambad M.I.D.C.
Mr. Bhatia +91-9811163032

10 Akhilesh die cast,Pune

Bhosari,Pune
Purchase Deptt +91-932505689

11 SumangalIndustries,Auragabad.
M.I.D.C. waluj
Mr. Bhapkar +91-93261 93997

12 Impresson,Pune
Bhosai M.I.D.C
Contact- Mr.Sameer +91-99215 25552
 INDOTHERM EQUIPMENT CORPORATION

13 Alcast Foundries,khed
Khed,Pune.
Mr. Arjun +91-96234 59108

14 Kulkarni Power Tools Ltd,

Kolhapur
Mr. Joshi +91-982258 38935

15 Minda SM Technocast Ltd,

Pune NanekarWadi, Chakan
Mr. Amol +91-2135 326367,286489

16 ForcastImpex ltd, Ahmednagar

M.I.D.C. Nagar
Mr. Tambe +91-241-2777349

17 LMS industries, Aurangabad

M.I.D.C. waluj
Mr Shakeel +91-84461 86892

18 Akshay components pvtltd,Aurangabad.

M.I.D.C. waluj
Mr. Barge +91-97300 24244

19 ShakunIndustries,Aurangabad.
M.I.D.C. waluj
Mr. Kulkarni +91-93262 10005

20 SuyogAutocast Pvt Ltd,

Pune. Bhosari M.I.D.C.
Mr. Malkare +91-80077 71138
 INDOTHERM EQUIPMENT CORPORATION

FUEL

Reliance CBFS oil (Carbon black Feed stock) (Equivalent to LDO)

SPECIFICATIONS:

BMCI( Bureau of Mines Co related Index) - 95% min

Specific Gravity - 1.007%
Viscosity - 15 cps max.
Flash point - 70ºC
Free water - Absent
Sulphur - 0.9 max
Asphalt - 15 max

LIST OF LICENSE FOR FACTORY

01. Approval of factory plan from authority.

02. S.S.I. registration for industry.

03. Village head NOC (If factory is out of MIDC).

04. Electrical permit for using electricity for industry.

05. Pollution control certificate.

06. Service tax. GST NO

07. TAN no. for TDS.

08. Import export license.

09. Weighing scale registration.

10. PF account registration.

11. ESIC registration.

12. PAN No.

 INDOTHERM EQUIPMENT CORPORATION

TYPES OF ALUMINIUM SCRAP

ALUMINIUM EXTRUSION

Clean Aluminium extrusion including mixed mill finish, painted and anodized
extrusion:
Material should be free of zinc, iron, felt, plastic, paper, cardboard, dirt or other
contaminants. Percentages of mill finish to coated to be agreed upon by buyer and seller.
 INDOTHERM EQUIPMENT CORPORATION

TAINT TABOR

Clean, mixed old alloy sheet aluminium: Shall consist of clean, old alloy aluminium
sheet of 2 or more alloys, free of foil, venetian blinds, castings, hair wire, screen wire, food
or beverage containers, radiator shells, aeroplane sheet, bottle caps, plastic, dirt, and other
non-metallic items. Oil and grease not to total more than 1%. Up to 10% Tale permitted.

USED BEVERAGE CANS UBC

Baled or briquetted aluminum cans: Shall consist of

used aluminum beverage cans baled or Briquetted, free of
iron and non-metallic. Variations to specification should
be agreed upon prior toShipment between the buyer and
the seller.
 INDOTHERM EQUIPMENT CORPORATION

TABLET

Clean Aluminum Lithographic Sheets: To consist of 1000 and or 3000 series

alloys, to be free ofpaper, plastic, excessively inked sheets, and any other contaminants.
Minimum size 8cm in anydirection.

TENSE

Mixed Aluminium castings: Shall consist of all clean

aluminium castings which may contain auto and aeroplane
castings but no ingots, and to be free of iron, brass, dirt and
other non-metallic items. Oil and grease not to total more
than 2%.

Irony Tense
Cast Aluminium with iron attachments: Shall consist of aluminium castings which may contain auto
andairplane castings. Level of iron and impurities to be agreed upon by buyer and seller.
 INDOTHERM EQUIPMENT CORPORATION

POLLUTION CONTROL NORMS FOR ALUMINIUM ALLOY MFG.

INDUSTRY

ü Out let temperature - 90 -100ºC

ü SPM limit - < 100mgm /Nm3
ü S02 - 50mgm/Nm3
ü Nox – Trace

QUALITY CONTROL LABORATORY

1. Spectometer

2. Argon gas cylinder

3. 1T A.C.

4. Tissue paper.

5. Fracture molds for sample.

6. Belt grinder for preparation of spectro sample.

 INDOTHERM EQUIPMENT CORPORATION

HIGH END CCD OPTICAL EMISSION SPECTROMETER Being a charge couple

Device (CCD)semiconductor detector spectrometer provides complete comprehensive
analysis of sample measuring all major alloying elements, traces, impurities.

SPECTROMETER PROPOSED ANALYTICAL PROGRAM-ALUMINUM

BASE.
! Si 0.0005-24%
! Fe 0.0005-12%
! Cu 0.0002 -50%
! Mn 0.0005-22%
! Mg 0.0001-12%
! Cr 0.0005-0.5%
! Ni 0.001-3%
! Zn 0.001-12%
! Ti 0.002-2.5%
! Li 0.0002-9%
! Na 0.0001-0.022%
! Pb 0.0005-1.5%
! Sn 0.001-20%
! Zr 0.0003-0.3%
! Al -Reference
All the above ranges are in percentage.

FOUNDRY FLUXES

Covering flux - It is a mixture of chlorine & fluorine salt. It is used for avoid oxidation of
molten Metal from atmosphere.

Degassing tablet- It is hexachloroethane base tablet. The main application of tablet is

used to Remove unwanted dissolved gases(hydrogen, oxygen) from molten metal.

Grain refiner - It is titanium base tablet. The main application of tablet is used to control
grain in Molten metal.
 INDOTHERM EQUIPMENT CORPORATION

ROTARY MELTING FURNACE IMAGE

INDOTHERM EQUIPMENT CORPORATION
INDOTHERM EQUIPMENT CORPORATION