Marble Tiles
| Product Code | 29131 and 29132 |
| Quality and Standards | IS 33161 (Revision 1974) |
| Uploaded on | June 2007 |
Introduction
Polished marble tiles manufactured out of natural marble blocks of different colours is well known as one of the most beautiful decorative and reliable building material. Marble tiles are used as building material in hotels, hospitals and airport terminals, architectural use for interior, exterior and floor decoration in building, decorative memorial stone, high precision instrument beds and surface plates. Besides these, marble is in demand for table, craftwork for interior decoration, name plates etc.
Market Potential
The polished marble tiles are having good demand in India and abroad. In developing countries like India, the construction work of hotels, airport, railway stations, hospitals etc. is in great upsurge. The people have developed attraction for marble tiles due to its hardness, durability, smoothness and finish.
Realizing the potential of polished marble tiles, to earn substantial foreign exchange, the Govt. of India included the marble tiles industry in its list of export thrust sector. The major importers of polished marble tiles are the United State of America, United Kingdom (U.K.), Japan, Germany, Singapore and Canada. India's main competitors in the international market are China, South Korea, Brazil etc.
Basis and Presumptions
With 300 working days in a year and of 8 hrs. shift per day, the unit is likely to achieve 80% of its installed capacity.
The unit shall achieve full capacity in 3 years.
Labour wages has been taken according to the Minimum Wages Act of the State Government.
| Interest Rate | 13% |
| Fixed capital | 13% |
| Working Capital | 13% |
| Margin money | 25% |
| Estimate life of the project | 10 years |
| Repayment of loan | 7 years |
Average cost of land has been considered as per the rate of SIDC in industrial areas.
Implementation Schedule
| Sl. No. | Activity | Period | |
| 1 | Preparing of project report | 1 month | |
| 2 | Selection of site | 1 month | |
| 3 | Registration of SSI | 1 Week | |
| 4 | Availability of finance/loan | 1 month | |
| 5 | Construction of building | 1 month | |
| 6 | Machinery procurement, erection and commissioning | 3 month | |
| 7 | Trial Production | 1 Week | |
| 8 | Recruitment of labour | 2 Weeks | |
Technical Aspects
Process of Manufacture
Marble slabs of required thickness procured from block sawing machine are fed in the polishing machine for surface polishing and cut into the desired dimensions of tiles with the help of edge cutting machine. Thereafter, the tiles are sorted out size wise and packed.
Quality Control and Standards
IS 33161 (Revision 1974).
Production Capacity (per annum)
| Quantity | : 112500 Nos. tiles size 6”x12” |
| : 62500 Nos. tiles, size 24”x24” | |
| : 112500 Nos. tiles, size 12” x 12” | |
| Value | : 9687500 |
| Motive Power | 30 kW. |
Financial Aspects
A Fixed Capital
(i) Land and Building
Description |
Rate (Rs.) |
| Land:About 500 sq. meter cost will be @ Rs. 2000 per sq.mtr. | @ Rs.2000 per sq.mtr |
| Building: Workshed: 12 x 10 sq, mtr. @ Rs. 4000 sq.mtr. | @ Rs. 3000 per sq.mtr. |
| Office Stores etc.: 100 sq.mtr. @ Rs. 5000 sq. mtr. | 500000 |
| Total | 1980000 |
(ii) Machinery and Equipments
Particular items |
Indigenous/ Imported |
No. |
Cost (Rs.) |
| Automatic marble cutting machine with 13 HP Motor and other accessories | Indigenous | 1 | 500000 |
| Edge cutting machine for edge cutting of the tiles with 10.5 HP motor and other accessories | " | 1 | 450000 |
| Automatic polishing machine with 5 HP motor and other accessories | " | 1 | 260000 |
| Overhead water tank cap 2500 Ltr. With water pump. | " | 1 | 40000 |
| Total | 1250000 | ||
| Cost of power connection including transformer 30 KW | 120000 | ||
| Electrification, transformer and foundation etc@ 10% | 125000 | ||
| Cost of fixture and furniture | 80000 | ||
| Pre-operative expenses | 20000 | ||
| Total | 1595000 | ||
Working Capital (Per Month)
Personnel (per month)
Designation |
No. |
Salary month (Rs.) |
Total (Rs.) |
| Manager-cum-supervisor | 1 | 15000 | 15000 |
| Typist-cum-clerk | 1 | 4000 | 4000 |
| Accountant | 1 | 7000 | 7000 |
| Sales-man | 1 | 8000 | 8000 |
| Skilled workers | 2 | 8000 | 16000 |
| Un-skilled workers | 4 | 4500 | 18000 |
| Peon | 1 | 3000 | 3000 |
| Watchman | 1 | 3000 | 3000 |
| + 22% p erquisites | 16280 | ||
| Total | 90280 | ||
Raw Materials (per month)
Description |
Indige-nous/ |
Qty.(Rs.) |
Rate (Rs.) |
Amount (Rs.) |
| Marble Slab | Ind | 1600 | 200 sq.m. | 320000 |
| Diamond saw and Spares | Ind | L.S. | 80000 | |
| Lubricants, chemical and Misc. | Ind | L.S. | 35000 | |
| Total | 435000 | |||
(iii) Utilities (per month)
Particulars |
(Rs.) |
|
| Electricity | L.S. | 25000 |
| Water | L.S | 1500 |
| Total | 26500 | |
(iv) Other Contingent Expenses (per month)
Particulars |
Value (Rs.) |
| Postage and Stationery | 2000 |
| Telephone | 2000 |
| Repair and Maintenance | 3000 |
| Transportation charges | 14000 |
| Insurance | 5000 |
| Sales expenses | 15000 |
| Consumable Stores | 2000 |
| Advertisement and Publicity | 4000 |
| Misc. Expenses | 10000 |
| Total | 57000 |
Total Recurring Expenditure (per month)
| (Rs.) | |
| Salaries and wages | 90280 |
| Raw materials | 435000 |
| Utilities | 26500 |
| Misc. expenses | 57000 |
| Total | 608780 |
Total Working Capital
| (Rs.) | |
| ( On two months basis) | 1217560 |
Total Capital Investment
| Total fixed investment | 3575000 |
| Total working capital | 1217560 |
| Total | 4792560 |
Financial Analysis
Cost of Production (per annum)
| (Rs.) | |
| Total recurring cost | 7305360 |
| Depreciation on building @ 5% | 99000 |
| Depreciation on Machinery and Equipments @ 10% | 125000 |
| Furniture and Fixtures @ 20% | 16000 |
| Interest on Total capital investment @ 13% | 623032.8 |
| Total | 8168392.8 |
Turnover (per annum)
Particular items |
Turn-over (per year) |
| 1,12,500 Nos. tiles of size 6”x12” @ Rs.20 per tile | 2250000 |
| 1,12,500 Nos. tiles of size 12”x12” @ Rs.30 per tile | 3375000 |
| 62,500 Nos. of tiles of size 24”x24” @ Rs.65 per tile | 4062500 |
| Total | 9687500 |
Net profit per year
Sales |
Cost of Production |
Profit |
| 9687500 | - 8165792.8 | 1519107.2 |
Net Profit Ratio
Net profit per year × 100 Turn over per year |
||
1521707.2 x 100 9687500 15.71% |
Rate of Return Ratio
Net Profit per year × 100 Total Investment |
||
1521707.2 x 100 4792560 31.88% |
Break-even Point
Fixed Cost (per annum) |
(Rs) |
| Depreciation on machinery 10% | 125000 |
| Depreciation on building 5% | 99000 |
| Depreciation on fixture and furniture 20% | 16000 |
| Interest on Total Investment @13% | 623032.8 |
| 40% of salary and wages | 433344 |
| 40% of other Contingent expenses (excluding insurance) | 249600 |
| Insurance | 6000 |
| Total | 1605976.8 |
| B.E.P | Fixed Cost x 100 Fixed cost + Net Profit
|
|
1603376.8 x 100 1603376.8 + 1521707.2 |
||
1.31% |
Addresses of Machinery and Equipment Suppliers
- M/s. M.I. Shah and Co. (Machinery) Pvt. Ltd.,
Lotus House, 5th Floor, 33, A,
New Marine Line,
Mumbai-400020 - M/s. Veenedyt
3, Girish, 224, Katni Road,
Matunga (West),
Mumbai-400016 - M/s. Rajasthan Udyog
13, Heavy Indl. Area,
Jodhpur. - M/s. Karam Chand Mansion
Barrack Road,
Behind Metro Cinema,
Mumbai-400020. - M/s. Grant Tools Pvt.Ltd.
53, 19th Main, 25th Cross,
5 Block Rajaji Nagar,
Bangalore-560010. - M/s. Surfix Polix
2-430, A, Naraina Village,
New Delhi-110028. - M/s. Ved Saso Mechanical
Opp. Lohil Machine Tools,
Panki Ind. Area, Kanpur. - M/s. Andhra Pradesh Mining Corporation
Panjagutta,
Hyderabad-500024 - M/s. Maharastra Steel Mining Corporation
Abbyanakar Nagar,
Nagpur-440010
Raw Material Suppliers
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
