PROJECT PROFILE ON DECORATION OF CERAMIC TILES
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1 PROJECT PROFILE ON DECORATION OF CERAMIC TILES PRODUCT : Decoration of Ceramic Tiles NIC CODE : Not Available (based on NIC 2004) PRODUCT CODE : Not Available (based on ASICC 2000) PRODUCTION CAPACITY : Quantity : sq. ft. per annum Value : Rs 45 Lakhs per annum QUALITY STANDARD : Not Available MONTH & YEAR : November 2010 of Preparation PREPARED BY : Glass & Ceramics Division MSME Development Institute Govt of India, Ministry of MSME 65/1, G.S.T. Road, Guindy, Chennai Phone:
2 INTRODUCTION OF THE PRODUCT Ceramic tiles are manufactured by several companies in the country. Ceramic tiles are of two types: wall tiles and floor tiles. Ceramic tiles come in various sizes and designs. This project envisages the decoration of ceramic wall tiles by screen printing and ceramic transfer techniques. MARKET & DEMAND ASPECTS Ceramic tiles are also decorated by the companies manufacturing the tiles. However there is niche market for decorated ceramic tiles to meet the specific needs and requirements of individual customers or contractors taking up construction of domestic and commercial buildings. IMPLEMENTATION SCHEDULE Sl Description of the activity Time (approx.) 1 Selection of the product 2 Preparation of the project report 1 month 3 Selection of the location 4 Registration of enterprise with DIC 5 Mobilising finance for the project 6 Procurement of machinery and equipment 7 Obtaining EB connection 4 months 8 Erection and commissioning of machinery and equipment 9 Recruitment of manpower 1 month 10 Trial run and commencement of production Total project implementation period 6 months PRESUMPTIONS (1) Interest rate: 15% per annum on total capital investment is taken into consideration (2) Margin money: The promoter may bring in one-third of both fixed capital and working capital requirements. (3) Efficiency: 75% utilisation of machinery and manpower has been considered. (4) Labour wages: Minimum wages applicable for semi-skilled and unskilled workers were taken into consideration. (5) Working shifts per day: It is envisaged that the enterprise will be in operation on single shift of 8 hours per day basis for 300 working days in year. 2
3 (6) Implementation period: Project implementation period of 6 months is envisaged RAW MATERIALS Ceramic wall tiles are procured by the entrepreneur himself and decorated. Alternatively, they may be purchased by the building contractors and given to the unit for decorating as per the custom designs of the customers. Ceramic transfer labels, ceramic colours and printing oils are other raw materials required for the project. MANUFACTURING PROCESS Decoration of ceramic tiles by the following two techniques is envisaged in the project: (1) Ceramic Transfer Technique Ceramic tiles are kept neat on the decorating surface by wiping with a dry and smooth cloth. Ceramic transfer labels are available in various designs viz. pictures of gods, flowers, designed borders, etc. The selected ceramic transfers are put in water for a while and taken out. Now the moist ceramic transfer is placed on the ceramic tile surface at desired location and gently removed the release paper, resting the transfer label firmly on the tile surface. A soft rubber squeeze may be used for rolling on the transfer label to remove any air bubbles between the surface of the tile and transfer label. Moisture if any is wiped out from the surface of the tile using a cotton cloth. Ceramic tiles so fixed with transfers are stacked in metallic stands and heated in an electrical furnace for optimum temperatures (750 C to 800 C) recommended by the manufacturers of ceramic transfers. (2) Screen Printing Technique Nylon screens of appropriate mesh size are fitted on aluminium or wooden frames. Alternatively, screens are pre-fitted to the aluminium or wooden frames may be purchased directly from dealers supplying screen printing materials. the desired design stencil is developed on the screen by applying a screen coating solution mixed with a photo-sensitizer. Pre sensitized special type of films may also be used for developing the design on the screen. Ceramic colours are available with suppliers in the form of fine powders along with printing oil media. Printing oil media is either available separately to be 3
4 mixed with ceramic colours and it comes readily premixed with colours from the suppliers. These ceramic colours are used for decorating the ceramic tiles using screen printing technique onto the surface of ceramic tiles using the above prepared screens of desired designs. Ceramic tiles, after screen printing with colours, are stacked in metallic stands and heated in electrical furnace for optimum temperatures (750 C to 800 C) recommended by the ceramic colour manufacturers. Heating and cooling is done gradually so that cracks are not developed in the tiles and decorated design formed a permanent part of the tile with a smooth finish. Electrical resistance heating type furnaces are used for heating. Ceramic fibre lining is used in the furnace for electrical energy conservation purpose. Stands are made using rods of heat resistant stainless varieties to stack ceramic tiles in the electrical furnace. QUALITY SPECIFICATIONS There is no Indian Standard Specification for decoration of ceramic tiles. However, the decorated ceramic tiles need to meet the customer needs and preferences. PRODUCTION CAPACITY The plant and machinery proposed in the project has a production capacity of sq. ft. of decorated ceramic tiles. At 75% utilisation of the capacity, productions of sq. ft. of decorated ceramic tiles have been taken into consideration. UTILITIES Electrical Power requirement: 25 kw power for industrial purpose is required. FINANCIAL ASPECTS FIXED CAPITAL (1) LAND & BUILDING A rented premise of having a covered area of 1000 sq. ft. is envisaged for the enterprise. A rental value of Rs 5000/- per month is taken into account. This amount has been shown in estimation of working capital requirement. 4
5 (2) MACHINERY & EQUIPMENT Sl Description Quantity Units Rate per Amount unit (Rs) (Rs) 1 Resistance heating type 1 No electrical furnace with one cubic meter heating space. 2 Electrical and EB charges for 25 kw power connection Total Erection and commissioning % 4 Screen printing frames, LS tools and accessories 5 Metallic stands LS Office equipment LS TOTAL (3) PREOPERATIVE EXPENSES Rs (4) TOTAL FIXED CAPITAL Rs WORKING CAPITAL (PER MONTH) (1) SALARY & WAGES (PER MONTH) Sl Description No. Salary (Rs) Amount (Rs) 1 Skilled or semi-skilled workers Unskilled workers Total % 2700 TOTAL (2) RAW MATERIALS (PER MONTH) Sl Description Quantity Units Rate per Amount unit (Rs) (Rs) 1 Ceramic tiles 3200 Sq. ft Ceramic colours 4 Kg Printing oils 4 Kg
6 4 Ceramic transfer labels LS Packing materials LS TOTAL (3) UTILITIES (PER MONTH) Sl Description Quantity Units Rate per Amount unit (Rs) (Rs) 1 Power 2000 kwh Water 50 KL TOTAL (4) MISCELLANEOUS EXPENSES (PER MONTH) Sl Description Amount (Rs) 1 Office expenses Consumables Repairs and maintenance Sales expenses Rent 5000 TOTAL (5) TOTAL WORKING CAPITAL (PER MONTH) Rs (6) WORKING CAPITAL FOR THREE MONTHS Rs (7) TOTAL CAPITAL INVESTMENT Rs FINANCIAL ANALYSIS (1) COST OF PRODUCTION (PER ANNUM) Sl Description Amount (Rs) 1 Total recurring cost Depreciation on machinery and 20% Amortisation of pre operative 10% Interest on capital 15% TOTAL (2) SALES TURNOVER (PER YEAR) Sl Product item Quantity Rate. Value 1 Decorated ceramic tiles sq. ft. Rs 125/- per sq. ft. Rs
7 (3) NET PROFIT (PER YEAR) Rs (4) PROFIT RATIO ON SALES 14.30% Pr ofit Ratio On Sales Net Pr ofit Per Year Sales Turnover Per Year X X % (5) RATE OF RETURN 31.60% Rate of Re turn Net Pr ofit Per Year Total Capital Investment X X % BREAK EVEN ANALYSIS (1) FIXED COST PER YEAR Sl Description Amount (Rs) 1 Interest on capital investment Depreciations and amortisation % of salaries and wages % of miscellaneous expenses Rent TOTAL (2) BREAK EVEN POINT (B.E.P.) 53.80% Fixed Cost Per Year B. E. P. X 100 X 100 Fixed Cost Per Year Net Pr oift Per Year % 7
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