M.S. and High Tensile Nuts and Bolts
| Product Code |
343201011 |
| Quality and Standards |
IS 1363:1992
IS 1367:1994
IS 2389:1968
IS 4206:1987 |
| Production Capacity |
Qty. : 720 M.T. (Per annum)
Value : Rs. |
| Uploaded on |
April 2007 |
Introduction
An industrial fastener comprises a very wide range of items like nuts and bolts, washers, studs, nails etc. Nuts and bolts consist a major link in the family of industrial fasteners and are used by every industry. Bolt is a piece of metal rod, whose one end is upsettled and other end is threaded. Nut is the item which rolls on these threads. Nut and bolts are available in various shapes, designs and sizes.
Nuts and bolts are used for fastening purpose in industries where the replacement of pieces and the parts is necessary. There are many industries producing these nuts and bolts of various sizes, but the demand too is increasing as well as the raw material for the products is easily and indigenously available. The main raw material is mild steel wire coil/rod of required diameter. The composition of materials controls the quality of the bolts and nuts. The recommended composition for nuts and bolts raw material is given as under
| Carbon |
0.22 to 0.23% |
| Phosphorus |
0.40% |
| Manganese |
0.39 to 0.60% |
| Sulphur |
0.50% |
Nuts and bolts are classified by two ways:
- Their uses,
- Shape of head.
In terms of use, nuts and bolts are of several type:
Larger dia bolts, machine bolts, stand bolts, joint bolts, foundation bolts and nuts etc. in terms of shape, bolt and nuts are classified by head shape like hexagonal head, square head, round head, pan head, truss head etc.
Market Potential
The demand of nuts and bolts is influenced by the following factors
- Transportation industries, Railways, aircraft, wagon, bicycles, automobile, body builders, etc.
- Electrical industries like manufacturing of transformer, electric motors, fans etc.
- Building activities such as construction of bridges, fabrication of various steel structure etc.
- Other heavy and light industries, steel and wooden furnitures, machine tools, agricultural machines and agricultural implements etc.
As various type of MS and HT nuts and bolts are used in above sectors, the market demand is directly proportionate to the development of these industrial segments.
Basis and Presumptions
| Capacity Utilisation |
75% on single Double Shift basis |
| Time period of 1 year |
300 days |
| Labour wages |
Estimated on the minimum wages |
| Rate of interest |
12% |
| Margin money |
25% varying from state to state |
| Operation period of project |
10 Years |
| Land & Building |
Own |
| Cost of machinery and equipment is approximate to that prevailing in the market. |
Implementation Schedule
Activity |
Period in Weeks |
| Selection of site |
2 |
| Preparation of project report |
4 |
| Provisional Registration |
1 |
| Financial arrangement |
8 |
| Procurement of machinery |
8 |
| Installation, electrification and commissioning of machinery |
6 |
| Selection and placement of staff |
2 |
| Procurement of raw materials, tools etc. |
2 |
| Total |
33 Weeks |
Technical Aspects
Process of Manufacture
The raw material used for manufacture of bolt is M.S. Rounds. As some of the rounds available are rusty and not perfectly round and straight, it is necessary to make them round. The rounds are pickled in the acid tanks, washed and drawn in a drawing machine. The cleaned rod is fed into the cold heading machine. In the machine, one end of the rod is cut into the desired length with cutting stroke and simultaneously the head formation takes at other end. For the HT bolts, forging is done on hot forging press. The pins are then trimmed in the trimming machine. In quality bolts, the lower side of the head is also faced. Threading is done in the thread rolling machines.
While manufacturing nuts, the hexagonal rod of desired size is procured and the nuts are cut on the automatic nut-cutting machine. Cutted nuts blanks are drilled and tapped on the nut-tapping machine. Finally, these are deburred in the polishing barrel.
Process Flow Chart (M.S. Bolts)
 |
Mild steel rod
|
Bolt cutting
|
Head making
|
Head trimming
|
Thread rolling
|
Polishing
|
Store/despatch
|
Process Flow Chart (H.T. Bolts)
|
Mild steel rod
|
Wire drawing
|
Bolt cutting
|
Forging
|
Trimming
|
Threading
|
Heat treatment (800OC - 900OC)
|
Tempering (400OC - 500OC)
|
Plating/Coating
|
Store/despatch
|
Quality Control and Standards
The Bureau of Indian Standards has laid down the following quality standards for M.S. and High tensile fasteners such as Bolts and Nuts
IS 1363 : 1992
IS 1367 : 1994
IS 4206 : 1987
Production Capacity
Quantity |
Value (In Rs.) |
| Nuts and Bolts of various sizes |
720 MT |
Pollution Control
This industry involves pollution to some extent for which State Pollution Control Board has to be approached.
Energy Conservation
The unit is equipped with electric powered machinery. The energy conservation efforts need in unit is the creation of awareness among the workers.
Financial Aspects
Fixed Capital
| (i) Land and Building |
Amount (In Rs.) |
| (i) Land 1500 sq. mtr. @ Rs. 3500 per sq. mtr including registration |
5250000 |
| (ii) Total built-up area 1200 sq. mtrs. as follows |
|
| Administrative building 100 sq. mtrs. construction cost @ Rs. 7,500 per sq. m |
750000 |
| Factory shed 1000 sq. mtrs. construction cost @ Rs.4000 per sq. mtr. |
4000000 |
| Stores, staff canteen etc. 100 sq. mtrs. @ Rs. 4000 per sq. mtr. |
400000 |
| Water Supply system(including Tube well +overhead tanK) |
100000 |
| Total civil cost= cost of land + building |
10500000 |
(ii) Machinery and Equipment (per month)
Description |
Qty. |
Amount
(In Rs.) |
| Double stroke solid die cold head forging machine suitable for bolt dia 6 mm to 18 mm and length 20 mm to 150 mm with 15 HP electric motor |
1No. |
1000000 |
| Head trimming machine upto 18 mm dia bolt x 150 mm length with 10 HP electric motor |
1No. |
600000 |
| Thread rolling machine suitable for upto 18 mm dia bolt x length 150 mm with 15 HP electric motor |
1 No. |
600000 |
| Bull block wire drawing machine |
1 No. |
160000 |
| Wire pointing machine with 1 HP motor |
1 No. |
25000 |
| Steel polishing barrel with electric motor |
1 No. |
60000 |
| Nut Making Section |
| Automatic nut forming plant, five station capacity 18 mm dia with 25 HP motor, lubricant and coolant pump |
4 Nos. . |
1600000 |
| Nut tapping machine with 3 HP motor and stater |
4 Nos. |
300000 |
| Semi muffle oil fired furnace |
1 No. |
200000 |
| Tempering furnace H.T. air circulated type electrically heated temp. upto 500OC 3 KW rating |
1 No. |
100000 |
| Die, tools guage and measuring instruments |
L.S. |
250000 |
| Electrification and installation @ 10% |
|
489500 |
| Office equipment and furnitures |
80000 |
| Generator Set for electricity backup |
300000 |
| Total |
5764500 |
| Total Fixed Capital i.e Cost of Building + Machinery |
16264500 |
Working Capital (per month)
(i) Personnel
Designation |
Nos. |
Salary (Rs.) |
Total
(In Rs.) |
| Manager |
1 |
15000 |
15000 |
| Office Assistant/clerk |
1 |
8000 |
8000 |
| Skilled worker |
12 |
7000 |
84000 |
| Semi-skilled Worker |
4 |
6000 |
24000 |
| Un-skilled Worker |
6 |
4500 |
27000 |
| Watchman-cum-Peon |
1 |
3000 |
3000 |
| Supervisor |
2 |
8000 |
16000 |
| Total |
|
|
177000 |
| Perquisites @ 22% |
|
|
38940 |
| Total |
|
|
215940 |
(ii) Raw Material (Indigenous)
Particulars |
Qty. |
Amount
(In Rs.) |
| M.S. Wire/rod 6mm - 18mm dia @ Rs.36000/ MT |
38.5 MT |
1386000 |
| Hexagonal M.S. rod 6mm - 18mm dia @ Rs. 35000 per MT |
21.50 MT |
752500 |
Packing/Polishing
materials and
consumables |
L.S. |
30000 |
| Total |
|
2168500 |
(iii) Utilities
| |
Amt.(In Rs.) |
| i) Electricity |
60000 |
| ii) Furnace oil, 12000 ltrs. @Rs. 40 per ltr. |
480000 |
| iii) Lubricant oil etc. |
5000 |
| Total |
545000 |
(iv) Other Contingent Expenses
| |
(In Rs.) |
| Maintenance and repair |
5000 |
| Postage, stationery and phone |
8000 |
| Packing and transport |
20000 |
| Travelling and conveyance |
10000 |
| Insurance |
2000 |
| Miscellaneous expenses |
10000 |
| Total |
55000 |
(v) Total Recurring Expenditure [i + ii + iii + iv]
| i) 215940+(ii) 2168500+(iii)545000+(iv) 55000 |
= 2984440 |
| (vi) Total Working Capital for 1.5 months Rs |
4476660 |
Total Capital Investment
| (i) Fixed Capital |
16264500 |
| (ii) Working Capital (for 1.5 months) |
4476660 |
| Total |
20741160 |
Financial Analysis
Cost of Production (per year) |
(In Rs.) |
| Total recurring cost |
35813280 |
| Depreciation on machines and equipments @ 10% |
489500 |
| Depreciation on office and equipment @ 20% |
16000 |
| Interest on total Capital Investment @ 12% |
2488939 |
| Depreciation on Building @ 5 % |
525000 |
| Total |
39332719 |
Total Sales (per annum)
Description |
Rate Rs/Kg |
Qty in MT |
(In Rs.) |
| MS bolts |
58 |
240 |
13920000 |
| MS nuts |
58 |
120 |
6960000 |
| HT bolts |
65 |
230 |
14950000 |
| HT nuts |
70 |
130 |
9100000 |
| Total |
|
|
44930000 |
Profit (per year)
| |
Rs. 44930000 - 39332719 |
| |
= 5597281 |
Net Profit Ratio on Sale
| |
Net profit × 100 |
| |
Turnover |
| |
5597281× 100 |
| |
44930000 |
| |
= 12.46 |
Rate of Return
| |
Net profit × 100 |
| |
Total investment |
| |
5597281 × 100 |
| |
39332719 |
| |
= 14.23 |
Break-even Point
Annual Fixed Cost |
(In Rs.) |
| Depreciation on Buildings |
525000 |
| Depreciation on machinery and equipment |
489500 |
| Depreciation on office equipment |
16000 |
| Interest on total investment |
2488939 |
| 40% of salary and wages |
1036512 |
| 40% of other contingent expenses excluding insurance |
254400 |
| 100 % of Insurance |
24000 |
| Total |
4834351 |
| B.E.P |
4834351 × 100
|
| |
4834351 + 5597281 |
| |
= 46.34 |
Addresses of Machinery and Equipment Suppliers
- M/s. Sohal Engineering Corporation
61, Ganesh Chandra Avenue,
Kolkata - 700013
- M/s. Perfect Machine Tools Co. Pvt. Ltd.
Bell Building, Sir P.M. Road,
Fort, Mumbai
- M/s. Manek Lal and Sons.
23, Ganesh Chandra Avenue,
Kolkata - 700 013
- M/s. Industrial Machine Corporation
F-36-C, Sainik Market,
Main Road, Ranchi
- M/s. S.S. Sabarwal and Sons
664, Military Road,
Anand Parbat Indl. Area,
New Delhi-110005
- M/s. Kalihar Machine Tools
Plot No. 18696/1,
K.M. Singh St. No. 7,
Ludhiana
- M/s. H. Mann Industries
Ram Tirath Road,
Amritsar - 143 001
Addresses of Raw Material Suppliers
- M/s. Usha Martin Industries
Tatisilwai,
Ranchi
- M/s. M. V. Wires Pvt. Ltd.
Poddar Estate, Mahilong,
Ranchi,
- Local Market
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
