Asbestos Pressure Pipes and Fittings

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Product Code 94407
Quality and Standards IS 1592 : 1988
Production Capacity: Qty. 6000 MT (per annum)
Uploaded on 3 January 2006


Asbestos pressure Pipes and Fittings are manufactured out of Chrysotile Asbestos (Long Fibre Asbestos) and ordinary Portland Cement ranges in different length and diameter. Generally these are 4 meter in length and 80 degree and 80mm in diameter and fittings of various designs are 90 degree and above, single equal function and double equal function.

Market Potential

In the light of economic liberalization, all round development is taking place in the country. There is a very good demand of AC pressure pipes and fittings in the Government department and domestic market. These pipes and fittings are extensively used for the drainage of rainwater and irrigation purpose. With the upsurge in the building construction and housing, the demand has further increase. There is good scope for setting up the industry for the manufacture of these products.

Basis and Presumptions

It is considered that the unit will work for 300 days in a year on two shift basis:

  • The efficiency of the plant has been considered at 80% of installed capacity. In case of pressure pipe unit, the bottleneck operation in pipe-moulding machines.
  • The unit may achieve a production of 60% and 70% in the first and second year of its operation.
  • Labour and wages has been taken as per minimum wages prescribed by the authorities or more as per the market trend.
  • An average rate of interest is taken @ 12% for the working and fixed capital requirements.
  • The promoter is expected to put in 25% margin money.

Implementation Schedule



Starting Completion
Survey for collection of date in respect of demand, raw materials, power and fuel,availability of technology, pollution control etc. 0 to 2nd month
Arrangement for margin money 2nd to 3rd month
Preparation for project document and registration 2nd to 3rd month
Financial assistance 4th to 6th month
Selection of site and development of land 4th to 6th month
Make shifts office to 7th month
Clearance for pollution Control 3rd to 6th month
Electricity, Water etc. 4th to 6th month
Construction/modification 7th to 10th month
Identification/selection of machines - to 5th month
Placement of orders (Machines) - to 6th month
Transportation and installation of Machines and equipments 10th to 11th month
Selection of raw material and placement of orders - to 9th month
Receipt of material 10th to 11th month
Installation of Laboratory equipments 9th to 10th month
Trial production   to 12th month
Construction/modification 7th to 10th month

Technical Aspects

Process of Manufacture

Raw Materials
Fire clays of both plastic and non-plastic varieties, refractory grog (broken fire bricks) and other high alumina minerals like kyanite, sillimanite and bauxite are the raw materials for making fire clay bricks and blocks.

Ordinary Portland Cement
Pipes are manufactured on pipe moulding machine and mandrels. The mixture of cement and asbestos is pumped into mandrel which rotates in between two rollers. The feeding of slurry is done by manual operation. After required thickness the pipe is taken out with the help of trolley lined with cloth. In case of pressure pipe, this is again kept on other rollers for giving more strength and kept in shed for 24 hours for setting or hardening and them kept in curing tanks filled with water for 14- 15 days. During the manufacturing process vacuum is created inside the mould so that desire thickness of the mixture of asbestos and cement can be deposited. The water which comes out through the holes of mandrels is recycled. The composition varies with the length of pipe. By and large asbestos to cement ratio is 1:9. However, ratio varies depending upon quality. Imported variety chrysolite is used for the manufacture of A.C. Pressure pipes and fittings. Generally 10-15% of asbestos is used for manufacture of the products. These pipes are 4 meters long with diameter ranging from 80mm to 300mm.

Quality Control and Standards

The products have to be tested according to IS 1582: 1989 issued by Bureau of Indian Standards.

Production Capacity (per annum)

Quantity 6, 000 MT.
Value Rs. 3, 37, 18, 500

Motive Power 125 HP

Pollution Control

To avoid health hazard to workers due to air borne, asbestos and cement, it is recommended to install dust collecting system and adopt safe work practice. The following are the simple recommendations to control dust in this industry:

  • it is recommended to prohibit smoking inside the working place.
  • The floor should be well built. The clearing of floors at various places is recommended by water mopping
  • A centralized dust collecting system of suitable capacity should be provided with extension of ducts fitted with control valves to the following machines:
    i) Fibre opening machine with suitable charging platform hood and water mist spray system.
    ii) Turbo mixer with a hood and charging platform.
    iii)Pipe cutting machine provided with a hood and spray system.
  • Carrying of slurry with basket to pipe forming machine should be replaced by a pump and flexible pipe system.
  • Workmen working in the area with potential to release asbestos dust should wear mask while working.
  • The used bags should be reversed in wet condition in a water tank and rinsed. The water can be used in mixer with the help of pump at frequent intervals. The empty bags free from fibres can be disposed off.

Working hoods with dust cover may be provided for moulding and should be suitably connected with suctions devices.

Financial Aspects

A. Fixed Capital

Land and Building



Land-6.000 sq. mtrs. @ Rs. 4000 per sq. mtrs. 5000000
Built-up area Office and Stores 100 sq. mtrs: @ 10,000 per sq. mtrs, boundry wall, gates, roads etc. 1,25,00,000
Shed for Plant 1500 sq. mtr. @ 9,000 per sq. mtrs. 1,08,00,000
Total 2,57,00,000

Machinery and Equipments

Production unit



Pipe making machine along with mandrels of 80mm dia and 4 meter long with 30HP motor INo. 80,00,000
Vacuum Pump with 30HP motor INo. 5,00,000
Mixer with 10 HP motor 2No. 8,00,000
Misc. items like pipe racks line etc. Lot 5,00,000
Pollution control Equipments like dust collector, asbestos handling and storing equipment, Raw water system, D,G, Set and Misc. utility equipment - 30,00,000
Curing tanks size 18' × 16 × 5 @Rs. 1,00,000 each 10 10,00,000
Cost of moulds for pipe of 22 Nos.@ Rs. 2,00,000 each - 44,00,000
Installation and electrification charges @ 10% - 19,00,000
Cost of fittings - 10,00,000
Office furniture and equipment - 5,00,000
Pre-operative expenses - 4,00,000
Total 2,28,00,000

Total Fixed Capital


Land and Building 2,57,00,000
Machinery and Equipments 2,28,00,000
Total 4,85,00,000

Working Capital (per month)

( i ) Staff and Labour (per month)



Salary / (Rs.)

Total (Rs.)

Technical Manager and marketing and sales team 3 50,000 50,000
Supervisor 1 10,000 10,000
Accountant cum cashier and finance professional 3   40,000
Skilled workers 10 5,000 50,000
Moulders 5 5000 25,000
Un-skilled workers 10 3500 35,000
Clerk cum Typist 2 5,000 10,000
Peon 2 3,000 6,000
Watchman 3 4,000 12,000
Total 2,38,000
Perquisites @ 20% 52,000
Total 2,90,000

(ii) Raw Material (per month)


Ordinary Portland Cement 230MT @ Rs. 4000 9,20,000
Crytobailite Asbestos 25MT @ Rs. 80,000 20,00,000
Lubricants 20,000
Total 29,40,000

(iii) Other Contingent Expenses (per month)


Postage and Stationery 5,000
Consumable store 10,000
Sales and marketing expenses 1,50,000
Repair and Maintenance 33,000
Transport Charges 25,000
Adminstrative expenses 1,50,000
Insurance 20,000
Misc. Expenses 15,000
Total 4,08,000

(iv) Utilities (per month)


Power 125HP (125 × 75 × 16 × 25) @ Rs. 5 per unit 1,88,000
Water 5,000
Total 1,93,000

Recurring cost (per month) (i+ii+iii+iv) Rs. 38,31,000
Recurring cost for 3 months Rs. Rs. 1,14,93,000

Total Capital Investment

Land and Building Rs. 2,57,00,000
Plant and Machinery Rs. 2,28,00,000
Working capital for 3 months Rs. 1,14,93,000
Total Rs. 5,99,93,000

Machinery Utilization

80% utilisation has taken into consideration.

Financial Analysis

Cost of Production (per year)


Raw material 3,52,80,000
Staff and labour 34,80,000
Other Contingent Expenses 4,08,000
Utilities 23,16,000
Depreciation on building @ 5% 11,65,000
Depreciation on machinery @ 10% 14,60,000
Depreciation on moulds, fixtures and furniture @ 20% 9,80,000
Interest on total capital investment @ 12% 71,99,000
Total 5,22,88,000

Annual Turnover


AC Pipes assorted Sizes (Pressure non pressure) 6000MT
Sale realisation @ 12,400 per MT 7,44,00,000
Profit and Loss Account 7,44,00,000 - 5,22,88,000 2,21,12,000

Profit Percentage (per annum)


Profit per year x 100

Total Sale

2,21,12,000 x 100



Return on Total Investment


Profit per annum x 100

Total Investment




Break-even Point

Value (Rs.)

Total depreciation 36,05,000
40% of staff and labour 13,92,600
40% of other expenditure/consumable 19,58,000
Insurance 2,40,000
Interest on total capitale) 71,99,000
Total 1,43,94,600



Fixed cost x 100

Fixed cost x 100

1,43,94,600 x 100

1,43,94,600 + 2,21,12,000

Addresses of Machinery and Equipment suppliers

  • M/s. Jaipur Asbestos
    New Sanganer Road,
    Sodala, Jaipur
  • M/s. T.S. Enterprises
    E-416, Road No. 14,
    V. K. I. Area
    Jaipur – 302 013
  • M/s. Ganesh Engineering Company
    Ajmer Road,
    Beawar – 305 901

Testing Equipment Suppliers

  • M/s. Joshi Scientific Corporation
    59, Bapu Gam Road,
  • M/s. Idento (P) Ltd.
    Idento House,
    336, Mitn. Road,

Raw Material Suppliers

  • M/s. Sneh International
    3052, Section – D,
    Pocket – 3, Basant Kunj,
    New Delhi
  • M/s. Andhra Pradesh Mining Corpn.
    Hyderabad (AP)
  • M/s. Easthfield Product
    5A/6th Floor,
    New Excelsion Building,
    Bastion Road,
    Mumbai – 400 001
  • M/s. Dutta Brog. and Co.
    N. S. Road,

For further information please contact

Information Manager
TIMEIS Project