Investment Casting
| Product Code | N.A. |
| Quality and Standards | As per demand |
| Production Capacity | 700 MT per year/shift |
| Uploaded on | February 2007 |
Introduction
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
Description |
Qty. |
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
Designation |
Salary (Rs.) |
No. |
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) |
(Rs.) |
|
| 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
Designation |
Salary (In Rs.) |
No. |
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) |
Rs |
| Coking Coal 120 MT @ Rs. 7500 MT | 9,00,000 |
(iii) Utilities (per month) |
(Rs.) |
| Electricity lump sum | 30,000 |
| Steam Coal | 60,000 |
| Total | 90,000 |
iv) Misc, Expenses (per month) |
(Rs.) |
| 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) |
(Rs.) |
| 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 |
Profitability
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 2,92,33,000 15.95% |
% Rate of Return of Capital
Net Profit ×100 Total Capital Investment 46,62,000 ×100 1,67,60,000 27.8% |
Break-even Point
Fixed Cost (per annum) |
(Rs.) |
| 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 |
B.E.P.
Fixed Cost ×100 Fixed Cost + Profit 45,31,000 ×100 45,31,000 + 46,62,000 49.8% |
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,
Kolkata-700001 - M/s. National Mechanical Works
72-A M.M. Road,
Paharganj,
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
E-mail: timeis@ficci.com
