Burnt Lime (With Oil Firing and Pollution Control System)
| Product Code | 21126, 21127 and 21131 |
| Quality and Standards | IS 1886 : 1961 IS 712 : 1973 IS 1624 : 1974 |
| Production Capacity: Qty. | Quantity : 16, 000 M.T. (per annum) Value : Rs. 6,67,91,000 |
| Uploaded on | 4th January 2007 |
Introduction
Burnt Lime also called as quick lime or unslaked lime is made out of lime stone deposits which are wide spread throughout the country. The burnt lime is extensively used as a mortar in the construction of building by mixing in with suitable proportion of sand and surkhee of burnt clay as aggregate. It is also used for white washing of houses and building. Iron and steel plants, and foundries use lime as a fluxing agent in considerable quantity. Some drugs and pharmaceuticals, paper industry, pesticides formulations and other chemical processing industries are using the unslacked lime.
Market Potential
There is rapid development taking place in the construction of buildings in rural and urban areas housing development programmes and industrialisation activities throughout the country, burnt lime has a good demand. The main application of lime, used as a mortar in the construction of building, by mixing it in suitable ratio with sand and surkhee of burnt clay, white washing of house and buildings, iron and steel industries, fluxing agent in foundries, drugs paper and pharmaceuticals industries, some chemical industries are also using the lime as a chemical processing agent. The demand for this product is also increasing day-by-day. In the view of this, there is a very good scope for setting up some new units.
Basis and Presumptions
- The Proposed unit will carry out lime calcination about 30 Tonne/ day (30 TPD), on two shifts basis, having 300 working days in a year.
- Annual expenses such as salary and wages other contingent expenses have been calculated for 12 months.
- It is expected that the unit will achieve its full capacity during the first year of operation itself.
- The wages proposed in this profile are per the prevailing wages practice. The staff and labour have been taken on the basis of minimum applicable.
- Normal rate of interest of about 12% is considered both for recurring and non-recurring investment.
- Margin money is generally @ 10- 25% and however it varies according to the location and the project and the rules of financial institutions.
- The normal operative period it estimated to be more than 15 years considering the present level Technology. The usual repayment period of loan is about three years.
- The term loan varies from one financial institution to another and general minimum gestation period is 6 months and it could be extended upto two years. Maximum period for repayment of loan would be less than four years including gestation period.
- The production capacity of the plant and machinery would be 60% in the first year, 70% in the second year and 80% in the third year respectively.
- The land value and construction cost has been taken on average basis, as it varies from place to place.
- The cost of machinery and equipment as proposed in the project profile may vary from place to place consulting the local machinery suppliers and traders and varies from place to place at the time of preparation of this project.
Implementation Schedule
Activity |
Period |
||
| Starting | Completion | ||
| Survey, for collection of data in respect of demand, raw material, including power, fuel, available of technology, pollution control | 0 | to | 2nd month |
| Arrangement of margin money | 2nd | to | 3rd month |
| Preparation of 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 |
| Clearance for pollution electricity, fuel and water, tie up for availability | 5th | to | 7th month |
| Construction/selection of machine identification | 6th | to | 7th month |
| Electricity, Water etc. | 4th | to | 6th month |
| Construction/modification | 7th | to | 10th month |
| Placement of order for machinery | 6th | to | 9th month |
| Transportation and installation of machinery and equipments | 6th | to | 10th month |
| Selection of raw material and replacement of orders | 8th | to | 11th month |
| Receipt of raw material | - | to | 11th month |
| Installation of machinery etc. | 10th | to | 11th month |
| Trial produciton | 12th month | ||
Technical Aspects
Process of Manufacture
The limestone mined from quarry or rivers should be free from all defects and impurities, once washed and cleaned again for removal of dust particles. These stone blocks are crushed manually or by jaw crusher in sizes of 3 to 6 inches. Oil fired vertical shaft kiln (VSK) refractory lining inside portion having about 33 metre conical vertical chimney, is used for the firing or calcination of lime stone at a temperature of about 900O C. The chimney of VSK is so arranged that the speed of exhaust gases and fumes in the chimney may travel @ 9 to 12m/sec. The diameter of chimney is so calculated that the lower/ bottom portion of chimney is one third of the total stack of chimney. Skip bucket with rope, which is driven by electric motor, is arranged for loading of stonepieces for firing of calcination. These stone pieces are loaded from the top of kiln, this process is done regularly as per the requirement of stone calcination. A cyclone or dust catcher is also arranged with a scrubber which collect about 50 to 80% dust particles and removed with scrubber. Approx. 4 kg. 6 kg. sludge/hr. is removed by this process which can be discharged to land fill. The firing is done with the help of burner. The firing is initiated from the bottom section of kiln and after a suitable interval the calcined lime is unloaded through the outlets provided at the bottom section of kiln. Property calcined lime is sorted out in different grades like A, B and C grade. Semi burnt lime stones are charged again in the kiln for calcination. The dust, clinkers ash and other harmful materials are removed from the finished product properly sorted lime is packed and stored for sale.
Quality Control and Standards
The Bureau of Indian Standards has formulated and published the following specifications for the necessary guidance and maintenance for the quantity of different types of lime product.
IS 1861:1961 Lime in vertical mixed feed type kilns and its manufacture
IS 712:1973 Methods of testing for building lime
IS 1624:1974 Fields testing and building lime and mortars
Production Capacity (per annum)
The production capacity envisaged in this project is about 8, 000 MT, valued at Rs. 1, 35, 38, 428 per annum.
Motive Power
Approximate 36000 KWH per annum power will be required.
Pollution Control
The project does not create any noise or water pollution, proper dust collector or cyclones arranged with a dust scrubber system to control 50% to 80% dust. The oil fired vertical shaft kiln having 33 meters height of removes all types of flue gases and smokes very easily and does not create any dust/air pollution. However, necessary clearance or NOC is to be obtained from the state pollution Control Board. Eye goggles and hand gloves may be used during the working hours.
Energy Conservation
Properly insulated and refractory lined furnace fuel on account of energy conservation. The oil fired furnace has better combustion control facilities which helps in saving energy from 30% to 40% when compared to conventional coal fired shaft furnaces.
- Machinery and equipments should be lubricated properly at regular intervals as per the schedule.
- All the plugs may be kept off, when the electricity is not required.
- The belts on pullies may be tightened properly during the working process.
- The layout of the plant should be maintained systematically.
Financial Aspects
A. Fixed Capital
(i) Land and Building |
(Rs.) |
| Land area-one acre | 16,00,000 |
| Office and work shed area-500 sq. mtrs Rs. 10,000 | 50,00,000 |
| A. Store, Workshop, Laboratory area about 500 sq.mtrs.@ Rs. 7000 /Sq. mtr | 35,00,000 |
| Boundary wall, MS Gate, vehicle's stand, time office etc. @ 5000 / Sq. Mtr. | 15,00,000 |
| Total | 1,16,00,000 |
(ii) Machinery and Equipments (All Indigenous)
Description |
Qty. (No.) |
Value (No.) |
| (a) Production Unit . | ||
| Oil fired vertical shaft kiln with Refractory lining inside portion of kiln having 33 metre height chimney made of steel Fabricated plate form type having all arrangement with skip bucket and burners etc. Capacity-30 Tonne per day | 1 No. | 10,00,000 |
| Jaw crusher for crushing the stone or pebbles with10 HP motor and starter etc. | 1 No. | 4,00,000 |
| Rotary self-driven for sieving the lime having different mesh sizes with 1.5 HP motor and starter etc. | 1 No. | 1,00,000 |
| Wheel barrow for handling of raw material and finished product | 4 Nos. | 1,20,000 |
| Balance for weighing upto 500kg. | 2 Nos. | 50,000 |
| Overhead water tank; capacity 5000 litrs. Water storage having well boring jet with 2 HP motor and starter, and pipe line fitting etc. | 1 No. | 3,00,000 |
| Bag filling and sewing machine | 1 No. | 1,00,000 |
| Generator set capacity 50 kVA | 1 No. | 8,00,000 |
| Other tools, fixtures, dies, hand tools, racks etc. | L.S.- | 1,20,000 |
| (b) Testing Equipments | L.S. | 1,00,000 |
| (c) Pollution Control Equipments | ||
| For air pollution control, | 10,00,000 | |
| For liquid pollution control | 8,00,000 | |
| Material handling equipment | 9,00,000 | |
| Fencing for plantation | L.S. | 80,000 |
| Hand gloves, eye goggles etc. | L.S. | 20,000 |
| ( d) Energy Conservation Equipments | L.S. | 1,00,000 |
| (e) Electrification and Installation @ 10% on machinery and equipments | 5,20,000 | |
| (f) Cost of office furniture and equipment like working tables, chair, Almirah and cash box etc. | L.S. | 3,00,000 |
| Total cost of machinery and equipments (a+b+c+d+e+f) | L.S. | 1,00,000 |
| (iii) Pre-operative Expenses | 3,00,000 | |
| Total Fixed Cost (i+ii+iii) | 1,87,10,000 | |
Working Capital (per month) |
(Rs.) |
| Land and Building | 2,57,00,000 |
| Machinery and Equipments | 2,28,00,000 |
| Total | 4,85,00,000 |
B. Working Capital (per month)
Staff and Labour (per month)
Designation |
Nos. |
Salary / (Rs.) |
Total (Rs.) |
| Administrative Staff | |||
| Manager-Cum-Technical Expert | 1 | 15,000 | 15,000 |
| Supervisor and sales man | 2 | 10,000 | 20,000 |
| Clerk-Cum-Cashier and finance man | 2 | 15,000 | |
| Store Keeper | 1 | 5000 | 5,000 |
| Technical (Skilled and Unskilled Workers) | |||
| Skilled workers | 8 | 5,000 | 40,000 |
| Semi-skilled workers | 8 | 4,000 | 32,000 |
| Unskilled workers | 12 | 3,500 | 42,000 |
| Peon | 2 | 3,000 | 6,000 |
| Chowkidar | 4 | 3,000 | 12,000 |
| Total | 1,87,000 | ||
| +22% perquisites on salary | 41,000 | ||
| Total | 2,28,000 | ||
Raw Material (per month)
Particular |
Qty. (MT) |
Rate (Rs.) |
Value (Rs.) |
| Lime stone blocks (including transport charges | 1600 M.T. | 500 | 8,00,000 |
| Packing material like gunny bags etc. | L.S. | L.S. | 25,000 |
| Total | 8,25,000 | ||
Utilities (per month)
Particular |
Qty. (MT) |
Rate (Rs.) |
Value (Rs.) |
| Power | 6000 kWH | 4.0 | 24,000 |
| Fuel/Furnace oil | 150 KL. | 18,000 | 27,00,000 |
| Water | |||
| Total | 27,24,000 | ||
Other Contingent Expenses (per month) |
(Rs.) |
| Postage and Stationery | 5,000 |
| Sales and marketing expenses | 41,000 |
| Repair and Maintenance | 41,000 |
| Telephone | 5,000 |
| Consumable store | 5,000 |
| Travelling and Local expenses | 25,000 |
| Insurance | 30,000 |
| Total | 1,52,000 |
Total Working Capital (per month) |
(Rs.) |
| Staff and Labour | 2,28,000 |
| Raw material | 8,25,000 |
| Utilities | 27,24,000 |
| Other Contingent expenses | 1,52,000 |
| Total | 39,29,000 |
| Working Capital for 3 months | 1,17,87,000 |
Total Capital Investment
| Fixed capital | Rs. 1,87,10,000 |
| Working capital for 3 months | Rs. 1,17,87,000 |
| Total | Rs. 3,04,97,000 |
Financial Analysis
Cost of Production (per annum) |
(Rs.) |
| Total recurring cost per annum | 4,71,48,000 |
| Depreciation on building @ 5% | 5,00,000 |
| Dep. on kiln @ 20% | 2,00,000 |
| Dep. on machinery and equips. @ 10% | 5,69,000 |
| Dep. on tools fixture, dies, racks @ 25% | 30,000 |
| Dep. on office furniture and equips. @ 20% | 60,000 |
| Interest on total capital investment @ 12% | 36,60,000 |
| Total | 5,21,67,000 |
Turnover (per annum)
Particular |
Qty. (MT) |
Rate (Rs.) |
Value (Rs.) |
| Burnt Lime | 16,000 | 4,174 | 6,67,91,000 |
Net Profit (per annum)
Total Turnover – Cost Production Rs. 1,35,36,000 – 1,07,88,428 Rs. 27,47,572 |
Net Profit (per annum)
Total Turnover – Cost Production Rs. 1,35,36,000 – 1,07,88,428 Rs. 27,47,572 |
Rate of Return (per annum)
Net Profit × 100 Total capital investment 1,46,24,000 × 100 3,04,97,000 47.9% |
Break-even Point
Fixed Cost (per annum) |
(Rs.) |
| Total depreciation | 13,59,000 |
| 40% of Staff and Labour | 10,94,000 |
| 40% of utilities and Other Contingent expenses (excluding insurance) | 1,30,15,000 |
| Insurance | 3,60,000 |
| Interest @ 12% | 36,60,000 |
| Total | 19488000 |
B.E.P
Fixed Cost × 100 Fixed Cost + Profit 19488000 × 100 -------------------------------19488000 + 1,46,24,000 57.1% |
Addresses of Machinery and Equipment Suppliers
- M/s. Khadi and Village Industries Commission
No. 6, Dr. D.V. Gundappa Road,
Gandhi Bazar,
Basavanagudi,
Bangalore-4 (Kiln) - M/s. Amic Industries
10, B. T. Road,
Kolkata – 56
(M/C) - M/s. Keshab Machineries Pvt. Ltd.
Bose Park,
Sukchar,
24 Parganas (West Bengal)
Raw Material Suppliers
All the raw materials are locally available.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
