Aluminium Fabrications

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Product Code 335908004
Quality and Standards As Per IS 1948:1961 and IS1949:1961
Production Capacity
  • Stair Case Hand Rails 9,000 sq. ft.
    Value : Rs. 54,44,000
  • Doors 12,000 sq. ft
    Value : Rs. 58,05,000
  • Windows 13,000 sq. ft
    Value : Rs. 56,61,000
Uploaded on February 2007


Aluminium fabricated items like doors, windows, staircase hand rails and supports, railings for verandas, corridors etc. have become the generally accepted feature in most modern buildings. The use of aluminium in business and office complexes, buildings, theatres as well as decorative purposes is very common. Similarly in residential buildings also aluminium doors, windows, railings, grill-works etc. are used extensively. Textile shops and other trading shops built in lighter materials too are going in for shelves made of aluminium for stocking purposes.

The advantages of aluminium such as light weight, strength, corrosion resistance, durability, easy in fabrication, attractive appearance and easy maintenance make it a popular material for use in modern buildings. Aluminium required for use in buildings is available from large scale manufacturers such as Indal, Balco, Jindal etc. as extruded sections in various shapes and sizes for specific uses. These sections are also available through their local dealers. The usual length of these sections is 12 feet/4 meters. Fabricators anodise these to desired colours and fabricate the items as per the customers' requirements. These items have good appearance and finish and the maintenance expenses are almost nil while steel and wooden items require regular painting and polishing periodically.

Market Potential

The development and construction activities being inter-linked, there is good scope for aluminium fabrication units for meeting the growing demand of new buildings for offices, business and shopping complexes, theatres etc. Aluminium fabricated and anodised items like doors, windows, railings, staircases, shelves, ladders etc. are being increasingly used in the modern constructions on consideration of durability and appearance. If the present trend is any guide, theatres, restaurants, hotels, shopping complexes, office premises and other luxurious buildings will fast replace wooden materials with aluminium fabricated items. The consumption of these items is already on the increase.

Basis and Presumptions

  • The production of the unit is worked out on the basis of single shift of 8 hours a day for 300 working days a year. The unit is expected to work at 70% efficiency in the first year.
  • The unit is expected to achieve 80% production capacity in the second year onwards.
  • Wages for labour etc. have been taken as per the rate prevailing at the time of preparation of the project profile.
  • Interest rate is calculated @ 12% on Capital Investment.
  • Entrepreneur has to raise 25% of the capital investment as margin money.
  • Considering the product and usage, the project can last for more than 10 years. The repayment of term loans will be made in 5 years after one year moratorium.
  • The unit is proposed to function in own building.
  • Cost of machinery and equipment has been taken as per the rates quoted by machinery manufacturers/suppliers.

Implementation Schedule

Name of Activity

Period in Weeks

Preparation of project report
  • Calling Quotations
  • Scheme Preparation
5 weeks
2 weeks
Provisional Registration as SSI 1 week
Financial arrangement from financial institutions and others 12 weeks
Purchase and procurement of machinery and equipment 8 weeks
Erection and electrification 3 weeks
Recruitment of personnel 4 weeks

Some activities shown above can be undertaken simultaneously in order to minimise the period of completion of the project.

Technical Aspects

Process of Manufacture

Manufacturing process involves anodising the aluminium extruded sections first and then fabrication. Anodising process involves buffing, pickling in acid solution, then cleaning in water, neutralising in acid and keeping the extruded sections in anodising tank for specified time. After anodising, the sections are to be fabricated as per the design and sizes of the customer by cutting, drilling, bending, welding, screwing, riveting, assembling with glasses and beading, wherever necessary. Handles locks etc. are also fitted as per requirements.

Production Capacity (per annum)

Items Quantity Value (In Rs.)
Stair Case Hand Rails 9,000 sq. ft 54,44,000
Doors 12,000 sq. ft 58,05,000
Windows 13,000 sq. ft 56,61,000

Quality Control and Standards

IS 1948:1961 specifies requirements regarding materials, fabrication and dimensions of aluminium doors, windows and ventilators manufactured from extruded aluminium alloy sections of standard sizes and designs completed with fittings ready for fixing with buildings. This standard does not cover the requirements for industrial doors, windows and ventilators.

IS 1949:1961 deals with aluminium windows suitable for use in industrial buildings.

Aluminium doors, windows, stair case hand rails etc. are made as per the customers' specifications and requirements. Workmanship and high finish are main criteria for these kind of products. Care should be taken in joining and assembling to get better appearance and finish.

Pollution Control

The anodising process using acid solution may leave residual solution which has to be disposed off periodically. The local Pollution Control Board may be consulted for appropriate method of disposal of these solutions.

Energy Conservation

Energy Conservation Energy consumption of this unit is on the low side since the lower powered motors are used in the production activity. The workers of the unit should be made aware of the need to conserve energy by switching off the energy sources when not required.

Financial Aspects

Fixed Capital

(i) Land and Building
(i) Land 500 sq. mtr. @ Rs. 3500 per sq. mtr including registration 17,50,000
(ii) Cost of land development, fencing, approach road, inside roads, land scaping, drainage etc. @ Rs. 1000 per sq. mtr. 5,00,000
(iii) Total built-up area 350 sq. mtrs. as follows  
  • Administrative building 75 sq. mtrs. construction cost @ Rs. 7,500 per sq. m
  • Factory shed 200 sq. mtrs. construction cost @ Rs.5000 per sq. mtr.
  • Stores, staff canteen etc. 75 sq. mtrs. @ Rs. 6,000 per sq. mtr.
Total civil cost= cost of land + building = 20,13,000 + 17,50,000 37,63,000

(ii) Machinery and Equipment



Amount (In Rs.)

Heavy duty cut off machine with 2 HP motor, starter etc. 1 150000
TIG Welding M/c. with all accessories 1 3,00,000
Anodising plant complete with rectifier 500 Amps 30 volts, complete with necessary tanks of 14 ft. length and initial chemical 1 7,00,000
Buffing machine with 2 HP motors 2 50,000
Drilling machine 12 mm cap. with 0.5 HP motor 1 50,000
Bore well, pollution control and DG set   10,00,000
Portable Electric Drill 2 20,000
Office furniture and equipments   5,00,000
Excise, sales tax & erection and installation charges 40% of total of 1 to 9   10,88,000
Total 38,08,000
(iii) Pre-operative expenses 3,00,000
Total fixed assets (i) + (ii) +(iii) 78,71,000

B. Working Capital (per month)

(i) Personnel



Salary (Rs.)

Amount (In Rs.)

Manager 1 15,000 15,000
Superviser 1 7,000 7,000
Skilled Worker 3 6,000 18,000
Semi-skilled Worker 6 4,000 24,000
Helper 4 3,000 12,000
Accountant, Sales and marketing team, purchase 6 6,000 36,000
Field Workman 3 6,000 18,000
Peon/Watchman 3 3,000 9,000
Total 1,39,000
Employees benefits @ 22% 31,000
Total 1,70,000

(ii) Raw Materials



Amount (In Rs.)

Aluminium extruded sections such as follows    
Book type hand rails 4" size Power 480 ft. 30,000
1" square pipe 3000 ft. 60,000
Flats 2" width × 1/8" thick 480 ft. 7,000
4½ × ½" section 324 ft. 20000
2½ × 1½" section 1200 ft. 60,000
2" × 1" section 1200 ft. 45,000
Aluminium wire 2 mm for welding 2000 ft. 10,000
Handle section for doors 60 ft. 3,000
Clips 4200 ft. 35,000
Glass sheet 3 mm/4.5 mm thick 1920 ft. 73,000
Chemicals for anodising LS 15,000
Misc. items such as hinges, screw, rubber beading, tower bolts, locks, wooden plug etc. LS 45,000
Total   403,000

(iii) Utilities


Amount (Rs.)

Electricity - 3,000 units @ Rs. 4.00 unit 12,000
Water L.S. 2,000
Total 14,000

(iv) Other Contingent Expenses


Amount (Rs.)

Postage, stationery, communications and other office services 20,000
Consumable stores, tools, repair and maintenance 30,000
Transport and conveyance 30,000
Advertisement and sales promotion 50,000
Insurance 4,000
Miscellaneous 15,000
Total 1,49,000

(v) Total Recurring Expenditure (per month)


(In Rs.)

Personnel 1,70,000
Raw material 4,03,000
Utilities 14,000
Other Contingent Expenses 1,49,000
Total 7,36,000

Working capital is considered for an average working Capital cycle of 1½ months

Hence, Working Capital = Rs. 7,36,000 × 1½
  = Rs. 11,04,000

C. Total Capital Investment

(i) Fixed Capital (In Rs.)
Fixed assets 78,71,000
Working Capital (for 1½ months) 16,56,000
Total 95,27,000

Financial Analysis

Cost of Production (per year)

Amount (Rs.)

Total recurring expenditure 1,32,48,000
Depreciation on Building @ 5% 1,01,000
Depreciation on Machinery and Equipment @ 10% 3,31,000
Depreciation on office equipment @ 20% 1,00,000
Interest on total capital investment @ 12% 11,43,000
Total 1,49,23,000

Turnover (per year)



Stair-case hand rails 9000 ft. @ Rs. 604.89 per ft. 54,44,000
Doors - 12,000 sq. ft. @ Rs. 483.75 per sq. ft. 58,05,000
Windows 13,000 sq. ft. @ Rs. 435.46 per sq. ft. 56,61,000
Sale of Scrap 2,90,000
Total 1,72,00,000

Net Profit (per year) (Before Income Tax)

Net Profit

= Total Sales – Cost of Production

  = Rs. 1,72,00,000 - Rs. 1,49,23,000
  = Rs. 22,77,000

Net Profit Ratio

  Net Profit per year×100
  Turnover per year
  = 22,77,000 × 100
  = 15.2%

Rate of Return

  Net Profit per Year ×100
  Total Investment
  = 22,77,000 × 100
  = 23.9%

Break-even Point

Fixed Cost (per annum)

(In Rs.)

Depreciation on building, machinery and office equipment 5,32,000
Interest on total capital investment 11,43,000
40% Salary and Wages 8,16,000
40% other contingent expenses 7,15,000
Total 32,06,000
B.E.P Fixed cost × 100
Fixed cost + Profit
Where, F.C. = 32,06,000 × 100
Profit = 32,06,000 + 22,77,000
  = 58.47%

Addresses of Machinery and Equipment Suppliers

  • M/s. Engineering Tools and Equipments
    Post Box No. 1972,
    64, S.B. Singh Road,
    Mumbai - 400023.
  • M/s. C M F Engineering
    3-A, Continental Plaza,
    705, Annasalai,
    Chennai - 600006.
  • M/s. India Machine Tools Company
    Pulikwal Buildings
    Post Box No. 1781,
    M.G. Road, Eranakulam,
    Cochin - 670002.
  • M/s. Hind Rectifier Ltd.
    Lake Road, Bhandup,
    Mumbai - 400078.
  • M/s. Archem Industries
    1/IC, Abdul Halim Lane,
    Kolkata - 700016.

Addresses of Raw Material Suppliers

  • M/s. Hindustan Aluminium
    Corporation Ltd.
    Industry House,
    159, Church Gate Reclamation,
    Mumbai - 400020.
  • M/s. Jindal Aluminium Company Limited
    Tumkur Road, 7th Mile Stone,
  • M/s. Aluminium Corporation of India Ltd.
    7 - Council Street,
    Kolkata - 700001.
  • M/s. Premier Metals and Engg. Company
    T. D. Road,
    Eranakulam - 682018.
  • M/s. Bhorukha Aluminium Limited
    K. R. S. Road, Matagally,
    Mysore - 570016.

For further information please contact

Information Manager
TIMEIS Project