Heavy Casting of Grey Cast Iron

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Product Code 33161700
Quality and Standards As Per Requirement
Production Capacity Quantity : 4500 M.T.
Value : Rs. 18,91,71,000
Uploaded on February 2007


This scheme covers grey cast iron castings of Heavy Mass upto 1.5 M.T.

For Example:

1. Roller castings for sugar mills.
2. Rack and gear boxes for General Engg. Works.
3. Ingot moulds for mini-Steel Plants.

Market Potential

The market potential of heavy grey iron castings is good and expected to be bright in future. These Castings are required by sugar mills, General Engineering Works and Mini-Steel Plants. The demand for such castings is increasing continuously due to rapid industrialization.

Basis and Presumptions

  • The project profile has been prepared on the basis of three shifts of 8 hrs. a day and 300 working days in a year at 75% efficiency.
  • It is presumed that in the first year, the capacity utilization will be 70% followed by 85% in the next year and 100% in the subsequent year.
  • The rates quoted in respect of salaries and wages for skilled workers, and others are on the basis of minimum rates in the State of U.P.
  • Interest rate for the fixed and working capital has been taken @ 12% on an average whether financed by Bankers or Financial Institutions.
  • The margin money required is minimum (30% of the total capital investment)
  • The land and civil construction cost has been taken in to account.
  • 7. The rate quoted in respect of machinery, equipment and raw materials are those prevailing at the time of preparation of the project profile and are likely to vary from place to place and suppliers to suppliers. When a tailor-made project profile is prepared, necessary changes are to be made.
  • The pay back period may be 5 years after the initial gestation period.
  • The gestation period in implementation of the project may be to the tune of 6 to 9 months which includes making all arrangements, completion of all formalities, market surveys and tie-ups etc. Once all the above arrangements are made and quality/standards achieved, the 100% project capacity may be achieved at the end of three years. However, a detailed PERT/CPM chart with implementation period has been given in the report.

Implementation Schedule

The implementation of the project includes various jobs/exercises such as procurement of technical know how, transfer of technology, market surveys and tie-ups, preparation of project report, selection of site, registration, financing of project, procurement of machinery and raw materials etc., recruitment of staff, erection/commissioning of machines, trial production and commercial production etc. In order to efficiently and successfully implement the project in the shortest period, the slack period is curtailed to minimum possible and as far as possible simultaneous exercises are carried out. In view of above, a CPMPERT Chart has been illustrated below, according to which a minimum period of 227 days is involved in finally starting the project on commercial basis. By following this process a time period of 82 days can be saved.

Details of Activities

C.P M .





Particulars of Activity

1-2 15 1-2 15 Procurement of Tech. know how/ transfer of technology.
3-4 15 3-4 15 Market survey, tie up and obtaining quotations
4-5 7 2-3 7 Selection of site
5-6 70 4-5 7 Preparation of Project report
6-7 45 5-6 70 Registration and financing
7-10 30 6-7 45 Placement of orders for machinery and receipt of machines
10-11 30 6-8 30 Recruitment of staff and training
11-12 15 6-9 30 Addition/Alteration in rental premises
    8-10 15 Procurement of raw material/Bought out components
    7-10 30 Erection, Electrification and Commissioning
    10-11 30 Trial Production
    11-12 15 Commercial Production
Total 227   309  

Technical Aspects

Process of Manufacture

Grey cast Iron heavy castings are produced by melting pig iron and C.I. scrap in cupola furnace. The molten metal is poured in dry sand moulds to avoid the mould dilution. Cores are made of silicon sands dried and coated with graphite paste. Graphite paste is prepared from graphite powder and Betonite mixed in water. The cores are dried in coal fired chamber properly before use in mould. Molten metal is poured in moulds cavity with the help of a ladle. Castings are taken out of the mould after getting cooled. After breaking the runner and risers castings are fettled properly.

Quality Control and Standards

Product as per requirements of the customer. The relevant standards of BIS are given below:

IS: 12006–1967 Metal patterns and pattern equipments.
IS: 6186 Bentonite.
IS: 1305–1984 Graphite for use in foundry.
IS: 224–1979 Foundry Pig Iron for General Purpose.
IS: 1110–1987 Ferrosilicon.
IS: 1987–1974 High silicon sand for use in foundries.
IS: 4836–1968 Coke.
IS: 4140–1978 Limestone for foundries.

Production Capacity (per annum)

Quantity 4500 MT
Value Rs. 18,91,71,000

Motive Power

Foundry shop 75 H.P.
Fettling Shop +Machine Shop
Power for ETP, water, pollution control system, office, lighting etc.
25 H.P.
Total 100 H.P.

Pollution Control

  • This industry involves pollution to some extent for which State Pollution Control Board has to be approached.
  • Minimum height of shed will be maintained with exhaust fans installed for removing decongestion, proper ventilation, removal of cokes, fumes etc.

Energy Conservation

The following steps may be taken for the conservation of energy:

  • Machinery and Equipment parts, which are revolving and reciprocating should be properly, lubricated from time to time with suitable lubricant oil.
  • Layout of the unit should be in such a way that no back tracking of material is there.
  • All electric switches may be kept off, when not required.
  • The entire transmission belt will be tightened before starting the work wherever applicable.
  • Fluorescent tube with electronic Chokes may be used for energy saving. Further recently developed compact fluorescent tubes called (CFT) of 10-15 watts Philips/Glaux made may be used for energy saving and decoration. These self ballasted fluorescent lamps are high efficiency replacements for ordinary bulbs. For same light output, CFLEBs consume about one-fifth the power consumed by ordinary bulbs, thereby saving a lot of energy. The savings get further multiplied when CFLEBs are used in air-conditioned areas, since the saving of energy by using CFLEBs also corresponds to less heat dissipation reducing load on air conditioners. The life of CFLEBs is about 8000/10000 hours i.e. about 10 times that of ordinary bulb.
    The typical payback period in terms of savings of energy bills and cost of ordinary lamps is about 6 months operation. Unlike ordinary bulbs, these CFLEBs provide choice of three colours designated A, B and C, to suit individual requirements.
    Electronic Ballast, with protection against high voltage spikes, along with high quality CFLs make these composite CFLEBs (or self ballasted CFLs) slim, lightweight, efficient and reliable units.
  • As far as possible Solar Energy and daylight will be used keeping all the other lights off.
  • As far as possible, inductive load of motor will be reduced and high power factor will be used with the aid of capacitors of appropriate sizes.

Financial Aspects

A. Fixed Capital

(i) Land and Building


Land: 1000 Sq. Mtr @ 3500 per Sq. Mtr 35,00,000
Boundary wall , gates an roads inside the factory premises. 8,00,000
Civil buildings consisting of factory shed, raw material and finished goods store, laboratory, ETP, DG set, maintenance room, store, security room, workers room, office for staff and officers. 750 Sq. Mtrs @ Rs. 6000 per sq. mtr 45,00,000
(i) Total land and building costs: Rs. 88,00,000

Plant and Machinery


HP/KW Ind/Imp.


(In Rs.)

(a) Production Unit
30" dia cupola with 7.5 HP Motor and Accessories Ind. 1 7,50,000
E.O.T. Overhead Crane 3 HP capacity Ind. 1 7,50,000
Sand Mullar with 5 HP Motor and accessories (Cap. 250 Kg. Batch type) Ind. 1 2,00,000
Sand Mixer (250 Kg. Cap.) with 5 HP Motor Ind. 1 1,50,000
Coal fired hot compart- ment for drying mould and cores (2m × 2m ×4m) Ind. 2 3,00,000
Ladles of 2 M.T. Cap. (Geared) Ind. 2 2,00,000
Flexible Shaft Grinder (Grinder with 2 HP motor) Ind. 2 50,000
Lathe machine with accessories 2 HP motor Ind. 2 3,50,000
Drilling Machine (1 HP motor) Ind. 2 1,00,000
Air Compressor 4.8 cft. with 3 HP motor. Ind. 1 50,000
Weigh bridge 1 ton capacity


1 1,00,000
(b) Testing Equipments
Sand Testing Equipments



Inspection Equipment like hardness tester, Micrometer, Calipers, Pyromoters etc.  


Pollution Control Equipment,



Bore well and water distribution system, DG set and accessories



Total 47,00,000
Cost of power connection, cables and electricals



Excise, sales tax erection Electrification and Installation Charges @ 35% of 1 to 11



Cost of Moulds/Jigs/ Fixtures/Dies etc.



Cost of Office Equipment/ Working Table etc.



Grand Total Table etc. 82,5,0,000
(iii) Pre-Operative Expenses 500,000
Total Fixed Capital (i) + (ii) + (iii) 1,75,50,000

B. Working Capital (per month)

(i) Personnel



Salary (In Rs.)

Amount(In Rs.)

Administrative and Supervisory
General Manager cum-Metallurgist 1 35000 35,000
Production manager, shift Supervisors/ maintenance foremen, laboratory chemists and in charge     1,50,000
Finance and accountant     20,000
Sales and marketing, purchase and stores.     50,000
Administration and liason     20,000
Peon–cum-watchman 8   28,000
Technical Workers
Skilled Workers 25 4000 1,00,000
Semi Skilled Workers 20 3500 70,000
Helpers 15 3000 45,000
Total 5,18,000
Perquisites @ 22%     1,14,000
Total 6,32,000

(ii) Raw Material (per month)



Rate (In Rs.)

Amount (In Rs.)

Pig Iron (Foundry Grade) 300 MT 20,000 per MT 60,00,000
Cast Iron Scrap 150 MT 14,000 per MT 21,00,000
Coke 30 MT 12,000 per MT 36,00,000
Foundry Chemicals and Various Consumables (like Fireclay, Fire-bricks, Steam Coal, Graphite, Coal Dust, Bentonite, Silica-sand, River-sand, Ferrosilicon, etc.     6,00,000
Total 1,23,00,000

(iii) Utilities (per month)


Electricity 1,50,000
Water 5,000
Total 155,000

(iv) Other Contingent Expenditure (per month)


Postage and Stationery 5,000
Advertisement 30,000
Repair and Maintenance 44,000
Telephone 20,000
Transportation 30,000
Consumable 15,000
Sales expenses 2,00,000
Insurance 19,000
Misc. Expenses 30,000
Total 3,93,000

Total Recurring Expenditure (per month) Rs.1,34,80,000
Working Capital for three months Rs. 4,04,40,000

C. Total Capital Investment

Fixed capital Rs. 2,63,50,000
Working capital for 3 months Rs. 4,04,40,000
Total Rs. 6,67,90,000

Machinery Utilization

It is expected that during first year machine utilization will be 70% and during second year 85% and 100% in subsequent years.

Financial Analysis

(i) Cost of Production (per annum)


Total Recurring Cost 16,17,60,000
Depreciation on Machinery and Equipment @ 10% 2,65,000
Depreciation on Furnace @20% 70,000
Depreciation on Jigs Fixture and Dies @ 25% 1,25,000
Depreciation on Office Equipments @ 20% 1,40,000
Interest on Total Capital Investment @ 12% 80,14,000
Total 17,19,74,000

Turn Over (per annum)



Rate (In Rs.)

Amount (In Rs.)

Heavy Castings up to 1.5 MT 4500 MT 42038/ MT 18,91,71,000
Total     18,91,71,000

Net Profit (Before Income Tax)

Turnover – Cost of Production

Rs. 18, 91,71,000 - Rs. 17,19,74,000

= 1,71,97,000

Net Profit Ratio


Net profit ×100

Turn ove

1,71,97,000 ×100



Break-even Point

Fixed Cost (per annum)


Total Depreciation (on m/c. and equipment, dies, tools, furniture civil construction) 22,00,000
Interest on Borrowing (Total Investment) 80,14,000
40% of Personnel Cost 30,37,000
40% of Other Contingent Expenses 18,86,000
Total 1,51,37,000



Fixed Cost ×100

Fixed Cost + Profit

1,51,37,000 x 100

1,51,37,000 + 1,71,97,000


Addresses of Machinery and Raw Material Suppliers

  • M/s. The Wasman Engg. Co. Ltd.
    1/2, Allenby Road,
    For Foundry Equipment
  • M/s. SANAS Foundry Project Engineers
    28, Vijay Nagar Colony, 2130,
    Sadashiv Path, Pune-411030

For Foundry Equipment and Consultants
  • M/s. Pioneer Equipment Co. P. Ltd.
    432, Padra Road,
  • M/s. Steel Authority of India Ltd.
    For Pig Iron
  • M/s. Raw Material Dipot of State Directorate
    of Industries
    For Pig Iron
  • M/s. Open Market For C.I. Scrap
  • M/s. IVP Ltd.
    Jolly Bhawan No. 2, Marine Lines,
    Mumbai (Branches all over India)
    For Foundry Chemical
  • M/s. Fincast Foundry Flux Company,
    Plot No. 303, GiDC Estate, ODHAV,
    For Foundry Chemical
  • M/s. Sagri Industries
    2, Mercantile, Apartments Opp.
    Basant Cinema, Chembur,
    For Foundry Chemical

For further information please contact

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