Marble Tiles

Product Code 29131 and 29132
Quality and Standards IS 33161 (Revision 1974)
Uploaded on June 2007

Introduction

Polished marble tiles manufactured out of natural marble blocks of different colours is well known as one of the most beautiful decorative and reliable building material. Marble tiles are used as building material in hotels, hospitals and airport terminals, architectural use for interior, exterior and floor decoration in building, decorative memorial stone, high precision instrument beds and surface plates. Besides these, marble is in demand for table, craftwork for interior decoration, name plates etc.


Market Potential

The polished marble tiles are having good demand in India and abroad. In developing countries like India, the construction work of hotels, airport, railway stations, hospitals etc. is in great upsurge. The people have developed attraction for marble tiles due to its hardness, durability, smoothness and finish.

Realizing the potential of polished marble tiles, to earn substantial foreign exchange, the Govt. of India included the marble tiles industry in its list of export thrust sector. The major importers of polished marble tiles are the United State of America, United Kingdom (U.K.), Japan, Germany, Singapore and Canada. India's main competitors in the international market are China, South Korea, Brazil etc.


Basis and Presumptions

With 300 working days in a year and of 8 hrs. shift per day, the unit is likely to achieve 80% of its installed capacity.

The unit shall achieve full capacity in 3 years.

Labour wages has been taken according to the Minimum Wages Act of the State Government.


Interest Rate 13%
Fixed capital 13%
Working Capital 13%
Margin money 25%
Estimate life of the project 10 years
Repayment of loan 7 years

Average cost of land has been considered as per the rate of SIDC in industrial areas.


Implementation Schedule

Sl. No. Activity Period
1 Preparing of project report 1 month
2 Selection of site 1 month
3 Registration of SSI 1 Week
4 Availability of finance/loan 1 month
5 Construction of building 1 month
6 Machinery procurement, erection and commissioning 3 month
7 Trial Production 1 Week
8 Recruitment of labour 2 Weeks

Technical Aspects

Process of Manufacture


Marble slabs of required thickness procured from block sawing machine are fed in the polishing machine for surface polishing and cut into the desired dimensions of tiles with the help of edge cutting machine. Thereafter, the tiles are sorted out size wise and packed.


Quality Control and Standards

IS 33161 (Revision 1974).


Production Capacity (per annum)

Quantity : 112500 Nos. tiles size 6”x12”
  : 62500 Nos. tiles, size 24”x24”
  : 112500 Nos. tiles, size 12” x 12”
Value : 9687500

Motive Power 30 kW.

Financial Aspects

A Fixed Capital

(i) Land and Building

Description

Rate (Rs.)

Land:About 500 sq. meter cost will be @ Rs. 2000 per sq.mtr. @ Rs.2000 per sq.mtr
Building: Workshed: 12 x 10 sq, mtr. @ Rs. 4000 sq.mtr. @ Rs. 3000 per sq.mtr.
Office Stores etc.: 100 sq.mtr. @ Rs. 5000 sq. mtr. 500000
Total 1980000

(ii) Machinery and Equipments

Particular items

Indigenous/ Imported

No.

Cost (Rs.)

Automatic marble cutting machine with 13 HP Motor and other accessories Indigenous 1 500000
Edge cutting machine for edge cutting of the tiles with 10.5 HP motor and other accessories " 1 450000
Automatic polishing machine with 5 HP motor and other accessories " 1 260000
Overhead water tank cap 2500 Ltr. With water pump. " 1 40000
Total 1250000
Cost of power connection including transformer 30 KW 120000
Electrification, transformer and foundation etc@ 10% 125000
Cost of fixture and furniture 80000
Pre-operative expenses 20000
Total 1595000

Working Capital (Per Month)

Personnel (per month)

Designation

No.

Salary month (Rs.)

Total (Rs.)

Manager-cum-supervisor 1 15000 15000
Typist-cum-clerk 1 4000 4000
Accountant 1 7000 7000
Sales-man 1 8000 8000
Skilled workers 2 8000 16000
Un-skilled workers 4 4500 18000
Peon 1 3000 3000
Watchman 1 3000 3000
+ 22% p erquisites 16280
Total 90280

Raw Materials (per month)

Description

Indige-nous/

Qty.(Rs.)

Rate (Rs.)

Amount (Rs.)

Marble Slab Ind 1600 200 sq.m. 320000
Diamond saw and Spares Ind L.S.   80000
Lubricants, chemical and Misc. Ind L.S.   35000
Total 435000

(iii) Utilities (per month)

Particulars

(Rs.)

Electricity L.S. 25000
Water L.S 1500
Total 26500

(iv) Other Contingent Expenses (per month)

Particulars

Value (Rs.)

Postage and Stationery 2000
Telephone 2000
Repair and Maintenance 3000
Transportation charges 14000
Insurance 5000
Sales expenses 15000
Consumable Stores 2000
Advertisement and Publicity 4000
Misc. Expenses 10000
Total 57000

Total Recurring Expenditure (per month)

  (Rs.)
Salaries and wages 90280
Raw materials 435000
Utilities 26500
Misc. expenses 57000
Total 608780

Total Working Capital

  (Rs.)
( On two months basis) 1217560

Total Capital Investment

Total fixed investment 3575000
Total working capital 1217560
Total 4792560

Financial Analysis

Cost of Production (per annum)

  (Rs.)
Total recurring cost 7305360
Depreciation on building @ 5% 99000
Depreciation on Machinery and Equipments @ 10% 125000
Furniture and Fixtures @ 20% 16000
Interest on Total capital investment @ 13% 623032.8
Total 8168392.8

Turnover (per annum)

Particular items

Turn-over (per year)

1,12,500 Nos. tiles of size 6”x12” @ Rs.20 per tile 2250000
1,12,500 Nos. tiles of size 12”x12” @ Rs.30 per tile 3375000
62,500 Nos. of tiles of size 24”x24” @ Rs.65 per tile 4062500
Total 9687500

Net profit per year

Sales

Cost of Production

Profit

9687500 - 8165792.8 1519107.2

Net Profit Ratio

   

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

Turn over per year

   

1521707.2 x 100
------------------------

9687500


15.71%

Rate of Return Ratio

   

Net Profit per year × 100
-----------------------------------

Total Investment

   

1521707.2 x 100
-------------------

4792560


31.88%

Break-even Point

Fixed Cost (per annum)

(Rs)

Depreciation on machinery 10% 125000
Depreciation on building 5% 99000
Depreciation on fixture and furniture 20% 16000
Interest on Total Investment @13% 623032.8
40% of salary and wages 433344
40% of other Contingent expenses (excluding insurance) 249600
Insurance 6000
Total 1605976.8

B.E.P  

Fixed Cost x 100
---------------------------

Fixed cost + Net Profit


   

1603376.8 x 100
-------------------------

1603376.8 + 1521707.2

   

1.31%


Addresses of Machinery and Equipment Suppliers

  • M/s. M.I. Shah and Co. (Machinery) Pvt. Ltd.,
    Lotus House, 5th Floor, 33, A,
    New Marine Line,
    Mumbai-400020
  • M/s. Veenedyt
    3, Girish, 224, Katni Road,
    Matunga (West),
    Mumbai-400016
  • M/s. Rajasthan Udyog
    13, Heavy Indl. Area,
    Jodhpur.
  • M/s. Karam Chand Mansion
    Barrack Road,
    Behind Metro Cinema,
    Mumbai-400020.
  • M/s. Grant Tools Pvt.Ltd.
    53, 19th Main, 25th Cross,
    5 Block Rajaji Nagar,
    Bangalore-560010.
  • M/s. Surfix Polix
    2-430, A, Naraina Village,
    New Delhi-110028.
  • M/s. Ved Saso Mechanical
    Opp. Lohil Machine Tools,
    Panki Ind. Area, Kanpur.

  • Raw Material Suppliers

  • M/s. Andhra Pradesh Mining Corporation
    Panjagutta,
    Hyderabad-500024
  • M/s. Maharastra Steel Mining Corporation
    Abbyanakar Nagar,
    Nagpur-440010

For further information please contact

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