HEAVY CASTING OF GREY CAST IRON

Transcription

1 HEAVY CASTING OF GREY CAST IRON PRODUCT CODE : QUALITY AND STANDARDS : As per requirement of the Customer PRODUCTION CAPACITY : 1,500 MT Value : Rs. 7,05,00,000/- MONTH AND YEAR : June, 2014 OF PREPARATION PREPARED BY : Sh. V. M. Jha Deputy Director (Metallurgy) 1. INTRODUCTION This scheme covers grey cast iron castings of Heavy Mass upto 1.5 MT. For Example: 1. Roller casting for sugar mills 2. Rack and gear boxes for General Engg. works 3. Ingot moulds for Mini-Steel Plants 2. MARKET POTENTIAL The market potential of heavy grey iron castings is good and expected to be bright in future. These castings are required by Sugar Mills, General Engineering Works and Mini-Steel Plants. The demand for such castings is increasing continuously due to rapid industrialization

2 3. BASIS AND PRESUMPTIONS Heavy Casting of Grey Cast Iron i. The project profile has been prepared on the basis of single shift of 8 hrs. a day and 25 days in a month at 75% efficiency. ii. It is presumed that in the first year, the capacity utilization will be 70% followed by 85% in the next year and 100% in the subsequent year. iii. iv. The rates quoted in respect of salaries and wages for skilled workers and others are on the basis of minimum rates in the State. Interest rate for the fixed and working capital has been 14% on an average whether financed by Bankers or Financial Institutions. v. The margin money required is minimum 25% of the total capital investment. vi. vii. viii. The rental value for the accommodation of office, workshop and other covered area has been Rs. 40 per sq. mtr. The rate quoted in respect of machinery, equipment and raw materials are those prevailing at the time of preparation of the project profile and are likely to vary from place to place and supplier to supplier. When a tailor-made project profile is prepared, necessary changes are to be made. The payback period may be 5 years after the initial gestation period. ix. The gestation period in implementation of the project may be to the tune of 6 to 9 months which includes making all arrangements, completion of all formalities, market surveys and tie-ups etc. Once all the above arrangements are made and quality/standards achieved, the 100% project capacity may be achieved at the end of three years. However, a detailed PERT/CPM chart with implementation period has been given in the report. 4. IMPLEMENTATION SCHEDULE The implementation of the project includes various jobs/exercises such as procurement of technical knowhow, transfer of technology, market surveys and tieups, preparation of project report, selection of site, registration, financing of project, procurement of machinery and raw materials etc., recruitment of staff, erection/commissioning of machines, trial production and commercial production etc. In order to efficiently and successfully implement the project in the shortest period, the slack period is curtailed to minimum possible and as far as possible simultaneous exercises are carried out. In view of above, a CPM-PERT chart has been illustrated below, according to which a minimum period of 227 days is involved in finally starting the project on commercial basis. By the following this process a time period of 82 days can be saved. Details of Activities -203-

3 Metallurgy Division C.P.M. Activity Days Activity Days Particulars of Activity Procurement of Tech. knowhow/ transfer of technology Market Survey, tie up and obtaining quotations Selection of site Preparation of Project report Registration and financing Placement of orders for machinery and receipt of machines Recruitment of staff and training Addition/Alteration in rental premises Procurement of raw material/bought out components Erection, electrification and commissioning Trial Production Commercial Production Total TECHNICAL ASPECTS 5.1. Process of Manufacturing Grey cast Iron castings are produced by melting pig iron and C.I. scrap in cupola furnace. The molten metal is poured in dry sand moulds to avoid the mould dilution. Cores are made of silicon sands dried and coated with graphite paste. Graphite paste is prepared from graphite powder and Bentonite mixed in water. The cores are dried in coal fired chamber properly before use in mould. Molten metal is poured in moulds cavity with the help of a ladle. Castings are taken out of the mould after getting cooled. After breaking the runner and risers castings are fettled properly Quality Specifications Products are produced as per requirements of the customer. Relevant standards of BIS are given below: IS: Metal patterns and pattern equipments IS: Bentonite IS: Graphite for use in foundry IS: Ferrosilicon IS: High silicon sand for use in foundries IS: Coke IS: Limestone for foundries IS: Foundry Pig Iron for General Purpose -204-

4 Heavy Casting of Grey Cast Iron 5.3. Production Capacity Quantity 1,500 MT (per annum); Value Rs. 7,05,00,000/ Motive Power Foundry Shop Fettling Shop + Machine Shop Total 30 HP 15 HP 45 HP 5.5. Pollution Control i. The industry involves pollution to some extent for which State Pollution Control Board has to be approached. ii. Minimum height of shed will be maintained with exhaust fans installed for removing decongestion, proper ventilation, removal of cokes, fumes, etc Energy Conservation The following steps may be taken for the conservation of energy: i. Machinery and Equipment parts which are revolving and reciprocating should be properly lubricated from time to time with suitable lubricant oil. ii. iii. iv. Layout of the unit should be in such a way that no back tracking of material is there. All electrical switches may be kept off, when not required. The entire transmission belt will be tightened before starting the work wherever applicable. v. Fluorescent tube with electronic chokes may be used for energy saving. Further recently developed compact fluorescent lights called CFLEB of watts Philips/Glaux made may be used for energy saving and decoration. These self-ballasted fluorescent lamps are high efficient replacement for ordinary bulbs. For same light output, CFLEBs consume about one-fifth the power consumed by ordinary bulbs, thereby saving a lot of energy. The savings get further multiplied when CFLEBs are used in air-conditioned areas, since the saving of energy by using CFLEBs also corresponds to less heat dissipation reducing load on air conditioners. The life of CFLEBs is about 8,000/10,000 hours i.e. about 10 times that of ordinary bulb. vi. vii. The typical payback period in terms of savings of energy bills and cost of ordinary lamps is about 6 months operation. Unlike ordinary bulbs, these CFLEBs provide choice of three colours designated A, B and C, to suit individual requirement. As far as possible Solar energy and daylight will be used keeping all the other lights off. As far as possible, inductive load of motor will be reduced and high power factor will be used with the aid of capacitors of appropriate sizes

5 Metallurgy Division 6. FINANCIAL ASPECT 6.1. Fixed Capital Land & Building: 600 m 2 on Rs. 40 per m 2 = Rs. 24,000/- per month Machinery and Equipments Sl. No. Description Ind./Imp. Qty. Price (Rs.) (a) Production Unit dia Cupola with 7.5 HP Motor and accessories Ind. 1 No. 5,00, E.O.T. Overhead Crane 3HP capacity Ind. 1 No. 5,00, Sand Mullar with 5 HP motor and accessories (Cap. 250 kg. Batch Type) 4. Sand Mixer (250 kg. cap.) with 5 HP motor 5. Coal Fired hot compartment for drying mould and cores ( 2m x 2m x 4m) Ind. 1 No. 1,00,000 Ind. 1 No. 80,000 Ind. 2 Nos. 2,00, Ladle of 2 MT Cap. (Geared) Ind. 2 Nos. 1,50, Flexible Shaft Grinder (With 2 HP motor) 8. Lathe machine with accessories 3 HP motor Ind. 2 Nos. 30,000 Ind. 2 Nos. 1,60, Drilling Machine (1 HP motor) Ind. 2 Nos. 80, Air compressor 4.8 cft. With 3 HP motor Ind. 1 No. 35, Weigh bridge 1 ton capacity Ind. 1 No. 90, Material Handling equipments Ind. LS 70, Fettling Equipments Ind. LS 50,000 (b) Testing Equipments 14. Sand Testing Equipments Ind. LS 1,00, Inspection Equipments like hardness tester, Micrometer, Calipers, Pyrometers, etc. Ind. LS 1,00,000 (c) Pollution Control Equipments (If required) 1,50,000 (d) Energy Conservation Facilities/Equipments 60,000 Total 24,55,

6 Heavy Casting of Grey Cast Iron (e) i. Cost of Power connection including transformer 2,50,000 ii. Electrification & Installation 10% 2,45,500 of cost of machines & equipments (f) Cost of Moulds/Jigs/Fixtures/Dies, etc. 4,00,000 (g) Cost of office equipments, working table, computers, etc. 1,50,000 (h) Preoperative Expenses 2,00,000 (Legal expenses, travelling expenses, consultancy fees, liasioning, Interest during construction/trial production, etc.) Total Fixed Capital Rs. 37,00, Working Capital (per month) Personnel S. No. Designation No Rate Total (Rs.) (a) Administrative & Supervisory 1 Manager cum Metallurgist 1 25,000 25,000 2 Engineer 1 20,000 20,000 3 Supervisor/Foreman 2 15,000 30,000 4 Assistant Supervisor 1 12,000 12,000 5 Commercial Staff & Accountant 2 12,000 24,000 6 Storekeeper 1 10,000 10,000 7 Peon cum watchman 2 9,000 18,000 (b) Technical 8 Skilled worker 6 12,000 72,000 9 Semi-skilled worker 6 10,000 60, Unskilled worker 8 8,500 68,000 Total 3,39,000 15% of salary 50,850 Total 3,89, Raw Materials including Packaging Materials Sl. No. Particulars Qty. Rate (Rs.) Amount (Rs.) 1 Pig Iron (Foundry Grade) 100 MT 25,000 25,00,000 2 Cast Iron Scrap 50 MT 22,000 11,00,000 3 Coke 30 MT 20,000 6,00,000 4 Foundry Chemicals & Various LS 2,00,000 Consumable like Fireclay, Firebricks, Steam Coal, Graphite, Coal Dust, Bentonite, Silica Sand, River Sand, Ferrosilicon, etc. Total 44,00,

7 Metallurgy Division Utilities Power 10,000 Rs. 9/- per kwh Rs. 90,000 Water Rs. 3,000 Total Rs. 93, Other Contingent Expenses (Per Month) S. No. Description Value (Rs.) 1 Rent (600 m Rs. 40/m 2 ) 24,000 2 Postage & Stationery 1,000 3 Advertisement/publicity 3,000 4 Repair & Maintenance 2,000 5 Telephone 2,000 6 Transportation 5,000 7 Consumable 3,000 8 Sales Expenses 3,000 9 Insurance 3, Taxes 3, Misc. Expenses 3,000 Total 52, Total Recurring Expenditure (per month) Rs. 49,34, Working Capital for 3 Months Rs. 1,48,04, Total Capital Investment Fixed Capital Rs. 37,00,500 Working Capital for 3 months Rs. 1,48,04,550 Total Rs. 1,85,05,050 Machinery Utilisation It is expected that during the first year machine utilisation will be 70% and during second year 85% and 100% in subsequent years

8 7. FINANCIAL ANALYSIS 7.1. Cost of Production (per annum) Heavy Casting of Grey Cast Iron S.No. Description Amount (Rs.) 1 Total Recurring Cost 5,92,18,200 2 Depreciation on Machinery & 10% 1,75,500 3 Depreciation on 20% 1,40,000 4 Depreciation on Jigs, Fixtures and 25% 1,00,000 5 Depreciation on Office Equipment & 20% 30,000 6 Interest on Total 14% 25,90,707 Total 6,22,54, Turnover (per annum) S. No. Item Qty. Rate (Rs.) Value (Rs.) 1 Heavy Castings up to 1.5 MT 7.3. Net Profit (per annum) = Turnover Cost of Production = Rs. 82,45,593/ MT 47,000 7,05,00,000 Total 7,05,00, Net Profit Ratio = Net profit per year Turnover per year X 100 = % 7.5. Rate of Return = Net profit per year Total Capital Investment X 100 = % -209-

9 Metallurgy Division 7.6. Break-even Point Fixed Cost (Rs.) Rent 2,88,000 Total Depreciation 4,45,500 Total Interest 25,90,707 Insurances, Taxes, etc. 1,08,000 40% of salary and wages 18,71,280 40% of other Contingent expenses (Excluding rent & Insurance) 91,200 Total 53,94,687 B.E.P = Fixed Cost Fixed Cost + Net Profit X 100 = 39.55% -210-

10 Heavy Casting of Grey Cast Iron Address of Machinery & Raw Material Suppliers 1. M/s. The Wasman Engg. Co. Ltd. 1/2, Allenby Road, Kolkata 20 For Foundry Equipment 2. M/s. SANAS Foundry Project Engineers 28, Vijay Nagar Colony 2130, Sadashiv Peth, Pune 30 For Foundry Equipment & Consultants 3. M/s. Pioneer Equipment Co. Pvt. Ltd. 432, Padra Road, Vadodara For Foundry Equipment 4. M/s. Met International No. 8, O.T.C. Road Nagarthpaet, Bangaluru M/s. Steel Authority of India Ltd. For Pig Iron 6. M/s. Raw Materal Dipot of State Directorate of Industries For Pig Iron 7. Open Market For C.I. Scrap 8. M/s. IVP Ltd. Jolly Bhawan, No. 2, Marine Lines, Mumbai (Branches all over India) For Foundry Chemicals 9. M/s. Fincast Foundry Flux Company, Plot No. 303, GIDC Estate, ODHAV, Ahmedabad For Foundry Chemicals 10. M/s. Sagri Industries 2, Mercantile Apartments Opp. Basant Cinema, Chembur, Mumbari 74 For Foundry Chemicals -211-