Glass Hollow Ware (Mouth Blown Process)
| Product Code | 9411994131, 94132, 94133 94148, 94158, 94161 94168 and 94174 |
| Quality and Standards | IS 1961: 1968 Glass Table wares. IS 1945: 1961 Glass Bottle for ink IS 1994: 1971 Glass container used for fruit preservation IS 1962 and 1974-Glass Bottle (wine) Glass Shells |
| Production Capacity: Qty. | Quantity: 1500MT (8,00,000 nos.) Value : Rs. 65, 00, 000 |
| Uploaded on | May 2007 |
Introduction
Hollow Glassware are made from silica sand and soda ash. Hollow Glassware contribute about 80% of total glass production. Major variety of hollow glassware items are given below :-
- Different size and colours decorative cylindrical glass bottles
- Glass Tumblers
- Lemon Set
- Wine and bear mug and ice cream cup
- Jar and jugs in different sizes and colour
- Lantern glass and chimney
There are about 19000 varieties of glass, which are manufactured in India.
Market Potential
Glass Hollow ware such as glass bottles, table ware, lemon set, tumbler, jar and chimney are being used since ancient times. These items have a great demand due to frequent use and regular breakage. Glassware are very much useful and essential for storage and packing of wine, food and chemicals etc. Demand of glass containers is increasing consistently. Glass containers are widely used in every household.
Basis and Presumptions
- It has been taken into consideration that the unit will work on three shift basis for 300 days in a year.
- Production capacity-1st year 60%, 2nd year 70%, 3rd year onwards 80%.
- Labour and wages mentioned as per the prescribed Minimum Wages Act.
- Interest rate at 13% per annum
- Margin money-25%
- Operative period of the project is about 10 years.
- The cost of land, construction charges, machinery and equipment, raw materials, and consumables, salaries and wages, other expenditure etc. indicated in the profile are based on the prices prevailing at the time of preparation. Therefore, they are subject to necessary changes from time to time based on the local condition.
- One time cullet would be used at the start of the furnace for melting. Cullet is produced there after during the regular melting and shaping process in the glass unit.
Implementation Schedule
Activity |
Period(in months) |
| Land acquisition | 2 |
| Building construction | 8 |
| Purchase of machines | 14 |
| Installation of machines | 15 |
| Trial Production | 16 |
| Commercial Production | 18 |
Technical Aspects
Process of Manufacture
Glass hollow ware are manufactured by mouth blown or semi automatic process as given below:
- Preparation of Batch
Different raw materials are weighed in proportion and mixed in mixer. Cullet glass are mixed in the above mixer and fed into the glass furnace. - Melting of Batch
The batch is fed in the furnace and melted at temp. 1400-1500ºC. - Shaping with Molten Glass
Molten glass is shaped by Mouth Blown Process. Molten glass (Gob) is taken out from furnace with the help of cast iron rods and blown, more glass is gathered and blown/pressed in the desired mould made of wood or metal.
These glassware are sent for annealing in the annealing chamber or leher to remove strains. Annealing is a process of slow cooling of glassware. The glassware are sorted and sent for packing.
Quality Control and Standards
BIS has published the following standard specifications for Hollow Glass ware:
Hollow Glass Ware
| IS 1961:1968 | Glass Table ware |
| IS 1945:1961 | Glass Bottle for ink |
| IS 1994:1971 | Glass container used for fruit preservation |
| IS 1962 and 1974 | Glass Bottle (wine) |
Financial Aspects
A. Fixed Capital
Land and Building |
App. Cost. (Rs.) |
| About 2000 sq. m. land will be required for the project | 4000000 |
Building
Particulars |
Area in Sq.mt. |
Area sq. m. |
Rate (Rs./ Sq.M.) |
Cost (Rs.) |
| Workshed | 50×10 | 500 sq. m. | 3000 | 1500000 |
| Office | 10×5 | 50 sq. m. | 4000 | 200000 |
| Godown | 10×10 | 100 sq. m. | 3000 | 300000 |
| Laboratory | 5×5 | 25 sq. m. | 5000 | 125000 |
| Boundary Wall | LS | 130000 | ||
| Factory Gate and Watchman room | LS | 105000 | ||
| Total | 2360000 | |||
Total Fixed Capital |
(Rs.) |
| Land and building | 3,00,00,000 |
| Plant and machinery | 70,90,000 |
| Pre-operative expenses | 5,00,000 |
| Total | 3,75,90,000 |
Machinery and Equipments
Particulars |
Indig-enous/ Imported |
Nos. |
Cost (Rs.) |
| Oil Fired Tank Furnace 5 MT | Indigenous | 1 | 3000000 |
| Chimney | " | 1 | 200000 |
| Anealing Lehr 4' x 75' fitted with heater and Motor 40 HP | " | 1 | 320000 |
| Compressor 50 HP | " | 1 | 300000 |
| Vacuum Pump | " | 1 | 90000 |
| Moulds and Dies LS | " | - | 50000 |
| Automatic batch mixer 5 HP | " | 1 | 40000 |
| Screening machine with 1 HP motor | " | 1 | 25000 |
| Magnetic Separator | " | 1 | 25000 |
| Weighing machine | " | 1 | 25000 |
| Oil tank storage capacity 50,000 litres | " | 1 | 15000 |
| Rotary pump for furnace | " | 2 | 200000 |
| Lathe machine 6' | " | 1 | 30000 |
| Drill machine | " | - | 25000 |
| Bench grinder 9" | " | 1 | 8000 |
| Testing equipments | " | LS | 12000 |
| Total | 4365000 | ||
| Electrification and installation of machines and equipments @22 % | 960300 | ||
| Transformer | 96000 | ||
| Furniture and fixture of office block | 40000 | ||
| Total | 5461300 | ||
| Pre-operative Expenses | 90000 | ||
| Total Fixed Capital | 7911300 | ||
B. Working Capital (per month)
Personnel
Designation |
Nos. |
Salary / month |
Total (Rs.) |
| Manager | 1 | 12000 | 12000 |
| Glass Technologist | 1 | 14000 | 14000 |
| Foreman | 2 | 7000 | 14000 |
| Supervisor | 6 | 7000 | 42000 |
| Accountant | 1 | 6000 | 6000 |
| Clerk | 2 | 4000 | 20000 |
| Storekeeper | 1 | 4000 | 4000 |
| Skilled worker | 24 | 4000 | 96000 |
| Un-skilled worker | 22 | 4000 | 88000 |
| Peon cum watchmen | 4 | 3000 | 12000 |
| Sweeper | 1 | 3000 | 3000 |
| Total | 311000 | ||
| +22% perquisites | 68420 | ||
| Total | 379420 | ||
Raw Materials (per month)
Description |
Qty. |
Rate (Rs.) |
Amount (Rs.) |
| Glass batch (Silica sand, soda ash and decoloriser | 200MT | 28000 | 560000 |
| Cullet Glass | 100MT | 1900/Mt | 190000 |
| Furnace Oil | 50000L | 25/ltr. | 1250000 |
| Packing material | L.S. | 60000 | |
| Total | 2060000 | ||
| Cullet Glass | 100MT | 1900/Mt | 190000 |
| Furnace Oil | 50000L | 25/ltr. | 1250000 |
Utilities (per month) |
Qty. |
Rate (Rs.) |
| Electricity | 80 H.P.×0.73×0.8×8×25×4 | 37376 |
| Water | L.S. | 3000 |
| Total | 40376 |
Other Contingent Expenses (per month) |
(Rs.) |
| Postage and Stationery | 2000 |
| Telephone | 2000 |
| Repair and Maintenance | 4000 |
| Transportation charges | 10000 |
| Sales expenses | 10000 |
| Misc. Expenditure | 10000 |
| Total | 38000 |
Total Recurring Cost (per month)
Total Recurring Expenditure (per month) |
(Rs.) |
| Salaries and wages | 379420 |
| Raw materials | 2060000 |
| Utilities | 40376 |
| Other Contingent expenses | 38000 |
| Total | 2517796 |
Total Capital Investment
| Fixed capital | Rs. 3,75,90,000 |
| Working capital | Rs. 39,54,000 |
| Total | Rs. 4,15,44,000 |
| Total Working Capital (on 2 months basis) | 5035592 |
Total Capital Investment
| Total fixed investment | 7911300 |
| Total working capital | 5035592 |
| Total | 12946892 |
Financial Analysis
Cost of Production (per annum) |
(Rs.) |
| Total recurring cost | 30213552 |
| Depreciation on building @ 5% | 118000 |
| Depreciation on machinery and equipment @ 10% | 242130 |
| Depreciation on furniture and fixtures @ 20% | 8000 |
| Interest on total investment @ 13% | 5,75,000 |
| Depreciation on furnace @ 20% | 600000 |
| Total | 32864778 |
Total Turnover (per annum)
Sales (per year) |
(Rs.) |
| 2400 M.T. Hollow glasswares @ 15000 M.T. | 36000000 |
Net Profit (per year)
Sales – cost of production 36000000 – 32864778 = 71,34,000 |
Net Profit Ratio
Net profit per year X 100 Sales per year 3135222x 100 36000000 8.71 |
Rate of Return
Net Profit per year x 100 Total Investment 3135222x 100 12946892 24.22 |
Break-even Point
Fixed Cost (per year) |
(Rs) |
| Depreciation on Building | 118000 |
| Depreciation on machines and Equipment | 242130 |
| Depreciation on furniture, fixture and minerals | 8000 |
| Depreciation on Furnace | 600000 |
| Installation Investment interest @ 13% | 1683095.96 |
| 40% of salary and wages | 1821216 |
| 40% of other Contingent expenses | 182400 |
| Total | 4654842 |
B.E.P
Fixed Cost × 100 Fixed cost + Net Profit 4654842 × 100 4654842 +3135222 59.75 |
Addresses of Machinery Suppliers
- M/s. Import India Ltd.
13-19, Gorva Industrial Estate,
Vadodra, (Gujarat) - M/s. Alock and Co. (P) Ltd.
7, Hasting Street,
Kolkata-700001. - M/s. Saini Ltd.
Vadodara
(Gujarat). - M/s. Glass Equipments (India) Ltd.
Bahadurgarh
(Haryana) - M/s. Allied Research and Engineering (Pvt.) Ltd.
Sangli, (Maharashtra)
Raw Material Suppliers
- M/s. Raj Kamal Silica Works
P.O. Shankergarh,
Distt. Allahabad. - M/s. Ajmer Mineral Grinding Corporation
Ajmer, (Rajasthan) - M/s. Pioneer Chemicals Co.
Tilak Market, Sadar Bazar,
Delhi-110006. - M/s. Standard Minerals
8, S, Deviji Street,
Mumbai-40003.
Borax
- M/s. Borax Morarji Co. Ltd.
Mahatma Gandhi Road,
Ambernath, Distt. Thane
(Maharashtra)
Soda Ash
- M/s. Tata Chemicals
Meethapur (Gujarat) - M/s. Sahn Chemicals Works
Sahanpur, Varanasi.
Refractories
- M/s. Belpahar Refractories Ltd.
48, Chaurayee Road,
Kolkata. - M/s. Carborundum Universal Ltd.
11/12, North Bitch Road,
Chennai. - M/s. Orissa Industries Ltd.
P.O. Narang Distt.
Cuttack (Orissa) - M/s. Kumar Dubhi Fire Clay and
Silica Works
P.O. Kumar Dubhi,
Distt. Dhanbad.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
