Glass Hollow Ware (Mouth Blown Process)

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Product Code 9411994131, 94132, 94133
94148, 94158, 94161
94168 and 94174
Quality and Standards IS 1961: 1968 Glass Table wares.
IS 1945: 1961 Glass Bottle for ink
IS 1994: 1971 Glass container used for fruit preservation
IS 1962 and 1974-Glass Bottle (wine) Glass Shells
Production Capacity: Qty. Quantity: 1500MT (8,00,000 nos.)
Value : Rs. 65, 00, 000
Uploaded on May 2007

Introduction

Hollow Glassware are made from silica sand and soda ash. Hollow Glassware contribute about 80% of total glass production. Major variety of hollow glassware items are given below :-

  • Different size and colours decorative cylindrical glass bottles
  • Glass Tumblers
  • Lemon Set
  • Wine and bear mug and ice cream cup
  • Jar and jugs in different sizes and colour
  • Lantern glass and chimney

There are about 19000 varieties of glass, which are manufactured in India.


Market Potential

Glass Hollow ware such as glass bottles, table ware, lemon set, tumbler, jar and chimney are being used since ancient times. These items have a great demand due to frequent use and regular breakage. Glassware are very much useful and essential for storage and packing of wine, food and chemicals etc. Demand of glass containers is increasing consistently. Glass containers are widely used in every household.


Basis and Presumptions

  • It has been taken into consideration that the unit will work on three shift basis for 300 days in a year.
  • Production capacity-1st year 60%, 2nd year 70%, 3rd year onwards 80%.
  • Labour and wages mentioned as per the prescribed Minimum Wages Act.
  • Interest rate at 13% per annum
  • Margin money-25%
  • Operative period of the project is about 10 years.
  • The cost of land, construction charges, machinery and equipment, raw materials, and consumables, salaries and wages, other expenditure etc. indicated in the profile are based on the prices prevailing at the time of preparation. Therefore, they are subject to necessary changes from time to time based on the local condition.
  • One time cullet would be used at the start of the furnace for melting. Cullet is produced there after during the regular melting and shaping process in the glass unit.

Implementation Schedule

Activity

Period(in months)

Land acquisition 2
Building construction 8
Purchase of machines 14
Installation of machines 15
Trial Production 16
Commercial Production 18

Technical Aspects

Process of Manufacture

Glass hollow ware are manufactured by mouth blown or semi automatic process as given below:

  • Preparation of Batch
    Different raw materials are weighed in proportion and mixed in mixer. Cullet glass are mixed in the above mixer and fed into the glass furnace.
  • Melting of Batch
    The batch is fed in the furnace and melted at temp. 1400-1500ºC.
  • Shaping with Molten Glass
    Molten glass is shaped by Mouth Blown Process. Molten glass (Gob) is taken out from furnace with the help of cast iron rods and blown, more glass is gathered and blown/pressed in the desired mould made of wood or metal.
    These glassware are sent for annealing in the annealing chamber or leher to remove strains. Annealing is a process of slow cooling of glassware. The glassware are sorted and sent for packing.

Quality Control and Standards

BIS has published the following standard specifications for Hollow Glass ware:
Hollow Glass Ware

IS 1961:1968 Glass Table ware
IS 1945:1961 Glass Bottle for ink
IS 1994:1971 Glass container used for fruit preservation
IS 1962 and 1974 Glass Bottle (wine)

Financial Aspects

A. Fixed Capital

Land and Building

App. Cost. (Rs.)

About 2000 sq. m. land will be required for the project 4000000

Building

Particulars

Area in Sq.mt.

Area sq. m.

Rate (Rs./ Sq.M.)

Cost (Rs.)

Workshed 50×10 500 sq. m. 3000 1500000
Office 10×5 50 sq. m. 4000 200000
Godown 10×10 100 sq. m. 3000 300000
Laboratory 5×5 25 sq. m. 5000 125000
Boundary Wall     LS 130000
Factory Gate and Watchman room     LS 105000
Total     2360000

Total Fixed Capital

(Rs.)

Land and building 3,00,00,000
Plant and machinery 70,90,000
Pre-operative expenses 5,00,000
Total 3,75,90,000

Machinery and Equipments

Particulars

Indig-enous/ Imported

Nos.

Cost (Rs.)

Oil Fired Tank Furnace 5 MT Indigenous 1 3000000
Chimney " 1 200000
Anealing Lehr 4' x 75' fitted with heater and Motor 40 HP " 1 320000
Compressor 50 HP " 1 300000
Vacuum Pump " 1 90000
Moulds and Dies LS " - 50000
Automatic batch mixer 5 HP " 1 40000
Screening machine with 1 HP motor " 1 25000
Magnetic Separator " 1 25000
Weighing machine " 1 25000
Oil tank storage capacity 50,000 litres " 1 15000
Rotary pump for furnace " 2 200000
Lathe machine 6' " 1 30000
Drill machine " - 25000
Bench grinder 9" " 1 8000
Testing equipments " LS 12000
Total 4365000
Electrification and installation of machines and equipments @22 % 960300
Transformer 96000
Furniture and fixture of office block 40000
Total 5461300
Pre-operative Expenses 90000
Total Fixed Capital 7911300

B. Working Capital (per month)

Personnel

Designation

Nos.

Salary / month

Total (Rs.)

Manager 1 12000 12000
Glass Technologist 1 14000 14000
Foreman 2 7000 14000
Supervisor 6 7000 42000
Accountant 1 6000 6000
Clerk 2 4000 20000
Storekeeper 1 4000 4000
Skilled worker 24 4000 96000
Un-skilled worker 22 4000 88000
Peon cum watchmen 4 3000 12000
Sweeper 1 3000 3000
Total     311000
+22% perquisites 68420
Total     379420

Raw Materials (per month)

Description

Qty.

Rate (Rs.)

Amount (Rs.)

Glass batch (Silica sand, soda ash and decoloriser 200MT 28000 560000
Cullet Glass 100MT 1900/Mt 190000
Furnace Oil 50000L 25/ltr. 1250000
Packing material L.S.   60000
Total 2060000
Cullet Glass 100MT 1900/Mt 190000
Furnace Oil 50000L 25/ltr. 1250000

Utilities (per month)

Qty.

Rate (Rs.)

Electricity 80 H.P.×0.73×0.8×8×25×4 37376
Water L.S. 3000
Total   40376

Other Contingent Expenses (per month)

(Rs.)

Postage and Stationery 2000
Telephone 2000
Repair and Maintenance 4000
Transportation charges 10000
Sales expenses 10000
Misc. Expenditure 10000
Total 38000

Total Recurring Cost (per month)

Total Recurring Expenditure (per month)

(Rs.)

Salaries and wages 379420
Raw materials 2060000
Utilities 40376
Other Contingent expenses 38000
Total 2517796

Total Capital Investment


Fixed capital Rs. 3,75,90,000
Working capital Rs. 39,54,000
Total Rs. 4,15,44,000

Total Working Capital (on 2 months basis) 5035592

Total Capital Investment

Total fixed investment 7911300
Total working capital 5035592
Total 12946892

Financial Analysis

Cost of Production (per annum)

(Rs.)

Total recurring cost 30213552
Depreciation on building @ 5% 118000
Depreciation on machinery and equipment @ 10% 242130
Depreciation on furniture and fixtures @ 20% 8000
Interest on total investment @ 13% 5,75,000
Depreciation on furnace @ 20% 600000
Total 32864778

Total Turnover (per annum)

Sales (per year)

(Rs.)

2400 M.T. Hollow glasswares @ 15000 M.T. 36000000

Net Profit (per year)

 

Sales – cost of production

36000000 – 32864778

= 71,34,000


Net Profit Ratio

   

Net profit per year X 100
--------------------------------

Sales per year


3135222x 100
------------------------

36000000

8.71


Rate of Return

   

Net Profit per year x 100
--------------------------------

Total Investment


3135222x 100
------------------------

12946892

24.22


Break-even Point

Fixed Cost (per year)

(Rs)

Depreciation on Building 118000
Depreciation on machines and Equipment 242130
Depreciation on furniture, fixture and minerals 8000
Depreciation on Furnace 600000
Installation Investment interest @ 13% 1683095.96
40% of salary and wages 1821216
40% of other Contingent expenses 182400
Total 4654842

B.E.P

   

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

Fixed cost + Net Profit


4654842 × 100
---------------------------

4654842 +3135222


59.75


Addresses of Machinery Suppliers

  • M/s. Import India Ltd.
    13-19, Gorva Industrial Estate,
    Vadodra, (Gujarat)
  • M/s. Alock and Co. (P) Ltd.
    7, Hasting Street,
    Kolkata-700001.
  • M/s. Saini Ltd.
    Vadodara
    (Gujarat).
  • M/s. Glass Equipments (India) Ltd.
    Bahadurgarh
    (Haryana)
  • M/s. Allied Research and Engineering (Pvt.) Ltd.
    Sangli, (Maharashtra)

Raw Material Suppliers

  • M/s. Raj Kamal Silica Works
    P.O. Shankergarh,
    Distt. Allahabad.
  • M/s. Ajmer Mineral Grinding Corporation
    Ajmer, (Rajasthan)
  • M/s. Pioneer Chemicals Co.
    Tilak Market, Sadar Bazar,
    Delhi-110006.
  • M/s. Standard Minerals
    8, S, Deviji Street,
    Mumbai-40003.

Borax

  • M/s. Borax Morarji Co. Ltd.
    Mahatma Gandhi Road,
    Ambernath, Distt. Thane
    (Maharashtra)

Soda Ash

  • M/s. Tata Chemicals
    Meethapur (Gujarat)
  • M/s. Sahn Chemicals Works
    Sahanpur, Varanasi.

Refractories

  • M/s. Belpahar Refractories Ltd.
    48, Chaurayee Road,
    Kolkata.
  • M/s. Carborundum Universal Ltd.
    11/12, North Bitch Road,
    Chennai.
  • M/s. Orissa Industries Ltd.
    P.O. Narang Distt.
    Cuttack (Orissa)
  • M/s. Kumar Dubhi Fire Clay and Silica Works
    P.O. Kumar Dubhi,
    Distt. Dhanbad.

For further information please contact

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