Aluminium Seal for LPG Cylinder

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Product Code 335902006
Quality and Standards Buyer's Specifications
Production Capacity Qty. : 180 lakhs (per annum) Value : Rs. 69,00,000.00
Uploaded on February 2007


The Aluminium Seal is used in the LPG Cylinder as a security measure i.e. before delivery to the customers. So no body can tamper with it and use the gas partly, so as to avoid customer being cheated.

Market Potential

This type of product is required by all the manufacturers of LPG Bottles, i.e. I.O.L., HPCL. BPCL etc. The product has got increasing and steady demand as the production of LPG cylinders is increasing day by day.

Basis and Presumptions

The basis of calculation of production capacity is based on present local market rates on single shift per day and efficiency at 70% of installed capacity. The cost of machinery and equipments as indicated in this profile refer to a particular make and prices are approximate.

Working Hours 8 Hrs./day
No. of Shifts 1/ day.
Working days 300/year
Labour Charges As per the Minimum Wages Act.

Implementation Schedule

This project will take its time of 7 to 8 months from the date of approval. Break up of activities with expected time and schedule is given below


Period (In months)

Market Survey and Scheme Preparation 2
SSI approval and registration 1
Sanction of Loan and Disbursement 2 to 5
Placement of Order and Procurement of machines 5 to 6
Installation of machines and power connection 6 to 7
Trial run and Commencement of production 7 to 8

Technical Aspects

Process of Manufacture

Al-Sheets (0.2/0.3 mm or 36 SWG) of size 20" × 30" cutted from the continuous coil, will be used as the raw material. The above raw material will be fed into high speed power press for blanking and drawing. After the operation of power press, the material will be processed in the knotching press for keeping gap. Finally, the trimming operation is done, for removal of extra material and polishing, the seals are polished in the polishing barrel. The finished Al-sheets are inspected, properly packed and despatched.

Quality Control and Standards

There is no Indian Standard Specification for this item. All the parameters are covered by I.O.L./H.P. Specification vide Ref. No. RD 15G 214.

Financial Aspects

Fixed Capital

(i) Land and Building (Rented)
Covered Area 400 Sq.Ft. 10,000/ month

(ii) Machinery and Equipments



Rate (Rs.)

Amount (Rs.)

High Speed Power Press-10 Ton Cap. Motorised 4 50,000 2,00,000
Trimming Machine Motorised 2 25,000 50,000
Knotching Machine-Hand operated 2 10,000 20,000
Treadle Shearing Machine 1 50,000 50,000
Polishing Barrel 2 25,000 50,000
Composite Tools and Dies, Work Bench etc. L.S.   50,000
Installation and Electrification Charge     50,000
Office Furniture L.S.   150,000
Total 6,20,000

B. Working Capital (per month)

(i) Staff and Labour (per month)



Amount (In Rs.)

Manager/Supervisor 1 10,000
Machine Operator 4 20,000
Skilled Worker 4 16,000
Helper/Peon 2 6,000
Total 52,000

(ii) Raw Material



Rate (Rs.)

Amount (In Rs.)

Al-Sheet 0.2 mm thick in the form of roll. 3 Ton 140/ Kg. 4,20,000
Total 4,20,000

(iii) Other Contingent Expenses (per month)


Amount (Rs.)

Rent 10,000
Power and Water 5,000
Consumable Stores 6,000
Packaging, Grease, Kerosene Oil etc. 20,000
Office Expenses 10,000
Total 51,000

(iv) Total Working Capital (per month)


Amount (Rs.)

Raw Material 4,20,000
Staff and Labour 52,000
Other Contingent Expenses 51,000
Transportation 5,23,000

C. Total Capital Investment

Machinery and Equipment 6,20,000
Working Capital (for 3 months) 5,23,000 × 3 15,69,000
Total 21,89,000

Financial Analysis

Cost of Production (per year)

Amount (Rs.)

Recurring Expenditure 62,76,000
Depreciation on M/c and office equipment @ 15% 93,000
Interest on total capital investment @ 12% 263,000
Total 66,32,000

Turnover (per year)


Amount (In Rs.)

Sale of 180 Lac pieces of Al. seal @ Rs. 38 each 69,00,000
By sale of scrap @ Rs 70 per Kg. for 6000 Kgs. 4,20,000
Total 73,20,000

Net Profit (per year) (Before Income Tax)

  73,20,000 – 66,32,000
  = 6,88,000

Net Profit Ratio

  Profit × 100
  6,88,000 × 100

Rate of Return


Net Profit × 100

Total Capital Investment

  6,88,000 × 100

Break-even Point

Fixed Cost (per annum)


Amount (Rs.)

Rent 1,20,000
Interest 2,63,000
Depreciation 93,000
40% of Salary 2,50,000
40% of Other Contingent Expenses 2,45,000
Total 9,71,000
B.E.P Fixed cost × 100
Fixed cost + Profit
  9,71,000 × 100
  9,71,000 + 6,88,000

Addresses of Machinery Suppliers

  • M/s. Batliboi and Co.
    190–A, Forbes Street,
    Fort, Mumbai-1.
  • M/s. H.P. Singh
    75, Ganesh Ch. Avenue,
  • M/s. Oriental Machinery Works
    23, R.N. Mukherjee Road,

For further information please contact

Information Manager
TIMEIS Project