Investment Casting

Home » Technology » Project Profiles » Metallurgy » Investment Casting
Product Code N.A.
Quality and Standards As per demand
Production Capacity 700 MT per year/shift
Uploaded on February 2007


Metallurgical Cokes are hard coke used in blast furnace for producing pig iron and in cupolas for the production of grey iron castings. Integrated Steel Plants have their own Coke oven battery in the premises to produce better quality of Metallurgical coke. Cokes used in Cupola are of inferior quality in comparison to coke used in the blast furnace. Due to some inherent characteristics like hardness, porosity, and abrasive strength, (Metallurgical cokes are being used in these furnaces. Metallurgical coke is produced by Carbonisation (heating of pulverised coking coal in absence of air) of coking coal i.e. bituminous coal in coke oven battery. Due to shortage of cooking coal in our country, now a days coke is also being produced by blending of coking coal, Non–coking and some additives.

Market Potential

There are a good number of units in small scale sector engaged in producing grey iron casting, graded cast iron castings and Malleable iron casting by melting the charge in Cupola furnace. Metallurgical coke is one of the main ingredients of the charge used for melting in cupola furnace as it acts as a reducing agent and also fuel for melting the charge hence metallurgical coke has got good market potential. In mini blast furnace and mini cupola furnace, inferior quality of metallurgical coke can also be used. Keeping in view the good concentration of foundries for casting grey iron and Malleable iron, it can be said that Metallurgical coke manufacturing unit has wide scope in the small scale sector.

Basis and Presumptions

  • The Project is based on two shift basis of 16 hrs. and 300 working days in a year.
  • The rate of interest has been taken a s 12% per annum for calculation purpose. This may vary from place to place and time to time.
  • The wages of labour have been taken as per trend of market.
  • The plant and machineries are indigenously available.
  • There is scope for pollution control and energy conservation for production of Metallurgical coke.
  • Land and buildings: To be purchased and constructed
  • 2–3% heating losses may occur.

Technical Aspects

Process of Manufacture

  • Bituminous coal is pulverized by ball mill into fine powder.
  • Fine coal is heated in coke oven battery at 700–900OC in absence of air. This process is called Carbonisation. Soaking at this temperature for about 7–8 hrs. It is allowed to cool in the furnace. Due to coking property of bituminous coal powdered coal converts into lump size and becomes very hard and highly porous.
  • After cooling, the coke produced is crushed into desired size. Strength of the coke, fixed Carbon, sulphur content and ash content is determined in the testing laboratory for justifying the quality of the coke.
  • By-products like tar may also be collected during carbonisation process.

Quality Control and Standards

Coking coal used should have low ash content, low sulphur and should be highly coking in nature for better quality of coke. Other properties like porosity, abrasive strength and hardness must be checked in the laboratory for maintaining the quality of Metallurgical coke.

Production Capacity (per annum)

Quantity 1400 MT
Value Rs.

Pollution Control

Pollution may be created during pulversing, crushing of coal and during carbonisation process. Hence, anti pollution measures must be adopted.

Financial Aspects

A. Fixed Capital

(i) Land and Building

Total land Area = 1000 Sq. Mtrs. @ 3500 Sq. Mtr Rs. 350,000
Civil Construction:

Boundry wall, gates, roads inside the factory

Factory building,

Utility buildings like DG. Set, Pollution Control system, raw water system of bore well and water storage and distribution

Raw material and finished goods storage, store, laboratory, maintenance room workers room, office, including sales marketing, accounts, purchase, administration and security

Total construction area = 600 Sq. Mtr.

Rs. 42,00,000

Plant and Machinery



Value (In Rs.)

Coke oven battery to produce 800 kg Coke per batch including accessories self fabricated 3 15,00,000
Coal crusher 2 4,00,000
Ball Mill (cap. 400 kg.) 3 5,00,000
Material handling equipments/tools etc. LS 3,00,000
Testing laboratory having Muffle Furnace, chemical balance, Glass wares, Asbestos rope, chemicals etc. LS 2,00,000
Platform type weighing balance 1 2,00,000
Office equipments   5,00,000
Total 36,00,000

B. Working Capital (per month)

(i) Personnel


Salary (Rs.)


Amount (In Rs.)

Metallurgist/ Foundry Technologist 30,000 1 30,000
Production Manager Supervisors, maintenance engineers and supervisors     1,00,000
Laboratory incharge and chemists   4 40,000
Skilled Workers   40 2,00,000
Helpers 3500 50 30,000
Sales and marketing staff     50,000
Purchase and Store staff     40,000
Administrative staff 25,000 25,000 25,000
Peon and Watchmen   8 24,000
Total 5,72,000
Add Perquisites @ 22% of Salaries 1,19,000
Grand Total   6,58,000

(ii) Raw Material Including Packaging Requirement (per month)


Graded Stainless/Alloy Steel @ Rs. 80,000/T 243 MT 1,94,40,000
Wax @ Rs. 40,000/T 30 MT 12,00,000
Ferro-Alloy L.S. 6,00,000
Total   2,12,40,000

B. Working Capital (per month)

(i) Personnel


Salary (In Rs.)


Amount (In Rs.)

Plant Manager, Sales, purchase, accounts and finance and administration staff     1,00,000
Skilled worker 5000 8 40,000
Unskilled worker/ helper 3000 12 48,000
Watchman/peon 3000 5 15,000
Total 2,03,000
Perquisites @ 22% 45,000
Grand Total 2,48,000

(ii) Raw Material (per month)


Coking Coal 120 MT @ Rs. 7500 MT 9,00,000

(iii) Utilities (per month)


Electricity lump sum 30,000
Steam Coal 60,000
Total 90,000

iv) Misc, Expenses (per month)


Stationery and telephone 25,000
Repair and maintenance 9,000
Chemicals/consumables etc. 20,000
Insurance 3,000
Transportation/publicity 50,000
Other expenses 20,000
Total 1,27,000

C. Total Capital Investment

Fixed capital Rs. 1,13,00,000
Working capital for three months Rs. 54,60,000
Total Rs. 1,67,60,000

Financial Analysis

(1) Cost of Production (per annum)


Recurring expenditure 2,18,40,000
Depreciation on coke oven Battery @ 20% 3,00,000
Depreciation on other plant and machinery @ 10% 2,10,000
Interest on total capital investment @ 12% 20,11,000
Depreciation on civil construction 2,10,000
Total 2,45,71,000

(2) Total Sale (per annum)

1400 MT Metallurgical Coke @ Rs. 20,880 per ton Rs. 2,92,33,000



Profit per annum (Before Tax)

Total sale – Cost of Production

Rs. 2,92,33,000 – 2,45,71,000

Rs. 46,62000

% Profit on Sale


Net Profit ×100

Total Sale

46,62,000 ×100



% Rate of Return of Capital


Net Profit ×100

Total Capital Investment

46,62,000 ×100



Break-even Point

Fixed Cost (per annum)


Interest 20,11,000
Total Depreciation, 7,20,000
40% salary of staff and labour 11,90,000
40% of other expenses 6,10,000
Total 45,31,000



Fixed Cost ×100

Fixed Cost + Profit

45,31,000 ×100

45,31,000 + 46,62,000


Addresses of Plant and Machinery Suppliers

1. Coke Oven Battery
  • Locally fabricated by Skilled Fabricator.
    If necessary guidelines may be taken from Central Fuel Research Institute, Dhanbad.

2. Jaw Crusher, Ball Mill
  • M/s. Batliboi and Co. (P) Ltd.
    26, R.N. Mukherjee Road,
  • M/s. National Mechanical Works
    72-A M.M. Road,
    New Delhi

Addresses of Coking Coal Suppliers

(I) Suppliers of Scrap
  • M/s. Bharat Coking Coal Ltd.
    Local Marketing Division.

For further information please contact

Information Manager
TIMEIS Project