Crockery (Bone China)

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Product Code 94326 and 94389
Quality and Standards As per Customers Specification
Uploaded on May 2007

Introduction

Mankind has a natural liking and inclination towards clay made utensils/crockery. Though a number of substitute items appeared in the market ultimately the clay crockery has sustained. The fancy items of bone china like tableware, crockery, decorative items, lamp shades etc. is finding a good domestic as well as export market.


Market Potential

The decorative items made of bone china are elegant for while there is a customer preference. The demand of bone china crockery and decorative item in urban areas is gradually increasing. There is a good scope of export to Gulf countries.


Basis and Presumptions

The unit will run on single shift basis in 300 working days in a year. There will be a 8 hours shift in a day. Furnance will work on three shifts basis.

Full production capacity will be achieved in 3 years.

Wages are taken as per the minimum wages of the Government.

Rate of interest on borrowings- 13%.

Life of plant and machinery-10 years.

Life of furnace-5 years.

Cost of plant and machinery as per latest quotations.


Implementation Schedule

Activity

Period(in months)

Possession of land 2
Construction of building 5
Purchase of machinery 8
Installation of machinery 12
Trial production 14

Technical Aspects

Process of Manufacture

China clay powder, calcined quartz powder, potash felspar, bone ash and other raw materials are weighed proportionately and fed in to ball mill for fine grinding. This mixture is ground to 300 mesh and sieved after passing through magnetic separator. The slurry is placed in agitator. This slurry is again pumped in to filter press, cake received from filter press is mixed with water and electrolyte to make casting slip. Now desired items are cast in Plaster of Paris moulds. Articles are taken out from moulds and dried. These articles are finished. After finishing and drying articles are biscuit fired. Articles are glazed by dipping or spraying and again after drying these articles are gloss fired. At last ready articles are decorated by transfer papers, ceramic colour or gold. These decorated articles are fired at 650ºC in electrical furnace. Thus ready articles are sorted and packed for despatch.


Quality Control and Standards

As per customer's specification.

Production Capacity (per annum)

Bone China Crockery and Art ware


Production Capacity (per annum)

Quantity : 130 MT
Value  

Motive Power 48H. P.

Pollution Control

Bone China unit has to take no objection certificate from the State Pollution Control Board as per rule.


Financial Aspects

A Fixed Capital

Land and Building

(Rs.)

Land 2000 sq. mtr @ Rs.2 000sq . mtr. 4000000
Building  
Work shed 500 sq. mtr. @ Rs. 5 000 sq. mtr. 2500000
Office Store 100 sq. mtr. @ Rs. 7000 sq. mtr. 700000
Total 7200000

Machinery and Equipments

Production Unit Description

Quantity (Nos.)

Value (Rs.)

Ball mill 5' x 5 1/2' with motor and other accessories 3 120000
Ball mill 3' x 3' with 7 HP motor and other accessories 1 50000
Blunger 10' with 5 HP motor 1 80000
Agitator with 3 HP motor 1 48500
Vibrating screen with magnetic separator 2 60000
Filter press 44'' dia, 30 plates 1 100000
De-airing pug mills with 5 HP motor 1 80000
Saggar press hand operated 1 30000
Pot mills 2 HP motor 1 10000
Shuttle kiln 6 Cubic meter 2 2400000
Muffle electric furnace 1 400000
Installation, electrification expenditure L.S. 300000
Plaster of Paris moulds L.S. 60000
Rack, panels etc. L.S. 25000
Testing equipments L.S. 20000
Office furniture L.S. 100000
Total 3883500

Pre-operative Expenses 80000

Total Fixed Capital

 

(Rs.)

Land 4000000
Building 3200000
Plant and Machinery 3883500
Preliminary Expenses 80000
Total 11163500

Working Capital (Per Month)

Salary and Wages

Designation

Nos.

Salary / (Rs.)

(Rs.)

Manager 1 16000 16000
Production Manager 1 10000 10000
Supervisors 3 7000 21000
Accountant/Clerk 1 7000 7000
Firemen 4 7000 28000
Moulders 2 65000 13000
Skilled Workers 25 5000 125000
Un-skilled Workers 15 3500 525000
Decorators 2 4000 8000
Peons 2 3000 6000
Electrician 1 4000 4000
Total 763000
Add Perquisites @ 10 % 76300
Total 839300

Raw Materials (per month)

Description

Quantity

Qty

Rate (Rs.)

Bone ash 9 MT 16000 144000
China clay 2.4 MT 3000 7200
Felspar 6.1 MT 1500 9150
Frit 1 MT 19000 190000
Plaster of Paris 2 MT 2200 4400
Fire clay 3.0 MT 2500 7500
Sillimanite 0.18 MT 1500 900
Decoration paper L.S. 15000 15000
Packing material L.S 15000 15000
Other Contingent expenses L.S 5000 10000
Total 232150

Utilities

 

Value (Rs.)

Power 48 HP 43200
Diesel L.D.O. 12 KL @ Rs. 35,000 per K.L. 420000
Total 463200

Other Contingent Expenses (per month)

(Rs.)

Postage and Stationery 2000
Advertisement and publicity 5000
Insurance 2500
Telephone Bills 4000
Consumables 10000
Repair and Maintenance 5000
Miscellaneous Expenses 5000
Total 33500

Total Working Capital (per month)

 

(Rs.)

Raw Materials 232150
Salaries and Wages 839300
Utilities 463200
Other Contingent expenses 33500
Total 1568150
Other Contingent expenses 3136300

Total Capital Investment

Fixed capital 11163500
Working Capital for 2 months 3136300
Total 14299800

Financial Analysis

Cost of Production (per annum)

Value (Rs. lakhs)

Total recurring expenditure 18817800
Depreciation on building @ 5% 160000
Depreciation on furnace @ 20% 80000
Depreciation on Plant and Machinery @ 10% 338350
Depreciation on Furniture and Fixtures @ 25% 25000
Interest on Total Capital Investment @ 13% 1858974
Total 21280124

Turn-over (per year)

Items

Qty.

Rate (Tonnes)

Value (Rs.)

Bone China Waxes and Art ware
Grade A 50 M.T. 195000 9750000
Grade B 80 M.T. 160000 12800000
Total     22550000

Net Profit (per annum)

  Turnover – Cost of Production
  22550000 – 21280124
  1269876

Net Profit Ratio

   

Net Profit per annum x 100
-----------------------------------

Turn Over per annum

    5.63

Rate of Return

   

Net profit per year × 100
-----------------------------------

Total Capital Investment

   

8.88


Break-even Point

Fixed Cost

(Rs)

Depreciation on Building 160000
Depreciation on Plant and Machinery and Furnace 418350
Depreciation on Furniture and Fixture 25000
Interest on Borrowings @ 13% 1858974
40% of Salary and Wages 4028640
40% of Other Contingent Expenses 13400
Insurance 30000
Total 6534364

B.E.P

   

Fixed Cost × 100
-------------------------

Fixed Cost + Profit

   

6534364 x 100
----------------------------

6534364 + 1269876

   

83.72%


Addresses of Machinery Suppliers

  • M/s. Shiv Industries
    206, Veena Dalvi Industrial Estate,
    Oshiwara, Jogeshwari (W),
    Mumbai - 400 102v
  • M/s. Erich Magnetics
    176/6B/10, Old Tijab Mill,
    Bholanath Nagar, Shahadra,
    Delhi - 110 032
  • M/s. Amic Industries Private Limited
    10, B.T. Road, Kolkata - 700 056
  • M/s. Eleind Engineering Private Limited,
    D-20/2, Okhla Industrial Area,
    Phase - II, New Delhi - 110 020

  • Raw Material Suppliers

    • M/s. Alam Ji Plaster Udyog
      Ramji Ki Gol,
      Tehsil Gurmalani,
      Barmer (Rajasthan)
    • M/s. Ceekay Plasters and Chemicals,
      64, Industrial Area, Bikaner
      (Rajasthan)
    • M/s. Tower Minerals
      Post Office- Malpur,
      Zenipur, (Rajasthan)
    • M/s. Mahavir Minerals Private Limited
      Jautani Bazar,
      Ajmer, (Rajasthan)

    For further information please contact

    Information Manager
    TIMEIS Project
    E-mail: timeis@ficci.com