Heavy Casting of Grey Cast Iron
| 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 |
Introduction
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 .
Activity |
Days |
Activity |
Days |
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 |
(Rs.) |
| 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
Description |
HP/KW Ind/Imp. |
Qty. |
Amount |
||
| (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 |
|
|
100,000 | ||
| Inspection Equipment like hardness tester, Micrometer, Calipers, Pyromoters etc. |
|
1,00,000 | |||
| Pollution Control Equipment, |
|
|
5,00,000 | ||
| Bore well and water distribution system, DG set and accessories |
|
|
10,00,000 | ||
| Total | 47,00,000 | ||||
| Cost of power connection, cables and electricals |
|
|
3,00,000 | ||
| Excise, sales tax erection Electrification and Installation Charges @ 35% of 1 to 11 |
|
|
17,50,000 | ||
| Cost of Moulds/Jigs/ Fixtures/Dies etc. |
|
|
5,00,000 | ||
| Cost of Office Equipment/ Working Table etc. |
|
|
700,000 | ||
| 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
Designation |
No. |
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)
Particulars |
Qty. |
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) |
(Rs.) |
| Electricity | 1,50,000 |
| Water | 5,000 |
| Total | 155,000 |
(iv) Other Contingent Expenditure (per month) |
(Rs.) |
| 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) |
(Rs.) |
| 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)
Particulars |
Qty. |
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 18,91,71,000 9.09% |
Break-even Point
Fixed Cost (per annum) |
(Rs.) |
| 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 |
B.E.P.
Fixed Cost ×100 Fixed Cost + Profit 1,51,37,000 x 100 1,51,37,000 + 1,71,97,000 46.81% |
Addresses of Machinery and Raw Material Suppliers
- M/s. The Wasman Engg. Co. Ltd.
1/2, Allenby Road,
Kolkata-700020
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,
Baroda - 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,
Ahmedabad-382415
For Foundry Chemical - M/s. Sagri Industries
2, Mercantile, Apartments Opp.
Basant Cinema, Chembur,
Mumbai-74
For Foundry Chemical
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
