As per requirements of
customer or as mutually agreed between the
purchaser and the seller.
Production Capacity
:
Qty.: Cement Paints in
various Shades 250 MT (per annum)
Value : Rs. 6750000
Uploaded on
:
December 2007
Introduction
Cement paints are covered under
Powder Paints which are used for exterior cemented
walls, all types of masonry surfaces like Bungalows,
Multistoried buildings, Bridges, Dams, Houses,
Buildings of General Public, etc. and can also
be used for Interior as well as exterior masonry
cemented surfaces. A wide range of colours and
shades in cement paints have been developed and
manufactured to meet various choices, moods, service
conditions, and methods of application, performance
and economic requirements. Cement paints are widely
used by general public and Government Departments,
and establishments. Cement paints give following
excellent properties to any masonry surface:
1) Cement paint gives very good
protection to all kinds of masonry surfaces from
Ultraviolet rays present in sunrays.
2) It gives very good protection
from severe climatic conditions like rain, heat,
water, humidity, salt atmosphere near sea-shores,
to all types of cemented walls, surfaces.
3) It prevents growth of fungus
and bacteria on masonry surfaces.
4) It gives very good colour
and pleasing appearance to all types of masonry
surfaces.
5) Cements paint hides out various
surface irregularities, hair lining, roughness
etc. thereby giving smooth and pleasing appearance
to all cemented masonry surfaces where it is applied.
Cement paints normally give smooth and matt finish.
The machines and equipments for the manufacture
of cement paints are indigenously available and
are not very expensive also. The process and technology
being simple, this item is suitable for development
in rural and backward areas. Cement paint produces
a smooth, matt finish, is strongly water repellent
and weather proof. It is hygienic and an excellent
light reflector, requires minimum curing with
water, without peelings, flaking or rubbing offs.
Market Potential
Since the cement paints gives
high order of protection, decoration, beautification
and durable properties than the normal whitewash.
It is extensively used on all types of emented
masonry surrfaces like Bungalows, multi-storied
building, bridges, dams, general public buildings,
houses etc. The demand of cement paint is increasing
with the general requirement of human beings throughout
the country. Cement Paints have a very good market
and a very promising future. There is a substantial
demand for Cement Paints from Government sectors
like DGS and D, State PWDs, CPWD, Railways, Defence,
State Electricity Boards, Govt. of India Enterprises,
State Govt. Enterprises, various contractors,
architects and engineers.
Basis and Presumptions
1. The information supplied
is based on a standard type of manufacturing activity
utilizing conventional techniques of production
and optimum levels of performance.
2. The estimates are drawn for
a production capacity generally considered techno-economically
viable for a model type of manufacturing activity.
3. Interest rate is taken as
14%
4. Operative period of the project is around 10
years considering technology obsolescence rate
and period of repayment of loan.
5.The costs of land, construction charges, cost
of machinery and equipment, raw materials and
consumables, salary and wages, other expenses
etc. indicated in the profile are based on the
prices prevailing at the time of preparation.
Therefore, there are subject to necessary changes
from time to time based on the local conditions.
Technical Aspects
Process of Manufacture
Cement paints are composed of
the following ingredients :
i) Pigments ii) Binder iii.)
Additives and iv) Solventswater, which is added
before application. The pigment portion consists
of prime pigments like Titanium Di Oxide, Carbon
Black, Phthalocyanine blue, Phthalocyanine Green,
Red Oxide etc. with suitable quantity of extenders
like whiting, china clay etc. The binder is the
white cement or ordinary Portland cement-33 grade
which acts as a film former or pigment binder.
Here water is used as solvent which is generally,
added before application of cement paint to the
masonry surface. Water is to be added in cement
paint to bring it to the desired consistency.
Additives like wetting and dispersing agents,
antifungicidal agents etc. are added in small
percentage to impart specific properties to the
cement paint.
Cement Paints are made on the
basis of the above ingredients depending upon
the formulations used by individual manufacturers
which is further based on customer's requirements
and specifications.
In the manufacturing of Cement
Paints Ball Mills and Edge Runner are used. All
the pigments/extenders and some portion of binder
(e.g. White cement, Ordinary Portland cement-33
grade etc.) with dispersing agents as per formulation
are charged in the Ball Mills and run till the
desired grinding/dispersion is achieved. The ground
material is taken out with the help of the rest
portion of binder to the Edge Runner machine.
Again it is grinded and mixed uniformly. Anti-fungicides
and other required additives as per formulation
are added here. Again grinded and mixed uniformly.
Then shade matching is done in comparison with
the colour card of manufacturer or as per the
requirements of customers. Then quality control
testing is done to achieve the required properties.
After quality control testing is O.K. It is packed
into containers or bags as per the requirements.
Before painting new surfaces,
it should be thoroughly cleaned and free from
efflorescence. Previously painted surfaces should
be washed out or brushed down. But if the surface
is in powdery or flaking condition, it should
be removed by scraping or wirebrushing, Cement
Paint normally should not be used on non-absorbent
surfaces, such as glazed bricks or neat cement
finish or previously flat oil or enamel painted
work. Two coats of cement paint are usually sufficient
on a new surface. Cement Paint, in powder form,
is to be thinned with water for applying by brush
or spray. Cement paint is to be made into a creamy
consistency by adding three volumes of Cement
Paint to one volume of water. Normally cement
paint must be added to water and not water to
cement paints. The above paste is diluted to a
suitable paint consistency by adding, while stirring,
further 2-3 volumes of water. Cement paint can
be applied by either brushing or Roller coating.
According to the painting instructions, the surface
is to be prepared and saturated with water. Immediately
after the excess surface water disappears, one
coat of Cement paint thinned with water previously
is to be applied. After 4-6 hours, the surface
is to sprinkled again with water. When dry, usually
overnight, the surface is to be wet with water
as done earlier before first application and second
coat of Cement paint is to be applied in the same
way and water sprinkled after 4 to 6 hours.
Financial Aspects
A. Fixed Capital
(i) Land and Building
(Rs.)
Land 700 sq. mtr @ Rs.2000sq.
mtr.
1400000
Building
Work shed 300 sq. mtr.
@ Rs. 5000 sq. mtr.
1500000
Office Store 100 sq. mtr.
@ Rs. 6000 sq. mtr.
600000
Total
3500000
(ii) Machinery and Equipments
Sl. No.
Description
Qty.
Amount (Rs.)
1
Mild Steel Ball Mill size,
30 ×36 with 5 H.P. Flame proof motor
and other accessories
3 Nos. @ 65,000 each
195000
2
Mild Steel ball Mill size
26 ×30 with 3 H.P. flame proof motor
and other accessories
2 Nos. @ 55,000 each
110000
3
Edge runner (Bucket, sizes
48) with reduction gear and other accessories
1 No.
90000
4
Weighing balance platform
type 200 kg. Capacity
1 No.
20000
5
Testing Laboratory equipments
and chemical testing tables etc.
70000
6
Counter scale balance
capacity upto 10 kg. with weight
3000
7
Fire extinguisher
4 Nos. @ 2200 each
8800
8
Miscellaneous hand tools,
fittings and auxiliary equipments
15000
Total
511800
Electrification and installation
charges @ 10%
51180
Total
562980
Office Furniture and fixtures
80000
Pre-operative expenses
50000
Total
692980
(iii) Staff and Labour (per month)
Sl. No.
Designation
No.
Salary (Rs.)
1
Manager
1 No.
15000
2
Clerk-cum-Accountant
1 No.
6000
3
Manufacturing Chemist
1 No.
9000
4
Salesman
1 No.
9000
5
Skilled Workers
2 Nos. @ Rs.5000
10000
6
Unskilled workers
4 Nos. @ Rs. 2500
10000
7
Peon
1 No.
3000
8
Watchman
1 No.
2500
Total
64500
Perquisites @ 22%
14190
Total
78690
(iv)
Raw Materials(Per Month)
(Rs.)
1
White Cement/ O.P.C.-33
15 MT @ 10600 PMT
159000
2
Whiting
3 MT @ 3800 PMT
11400
3
Barytes
1.25 MT @ 4800 PMT
6000
4
China Clay
1.25 MT @ 4000 PMT
5000
5
Pigments (Titanium Di
Oxide, Carbon black, Phthalocyanine Blue,
Red oxide, Phthalocyanine green etc.)
0.8 MT @ 1,10,000 PMT
88000
6
Additives like brightening
agent, Anti-fungicide etc.
25000
Total
294400
(v)
Utilities (per month)
(Rs.)
1
Electric Power 2100 KWH
@ Rs. 4.00 per unit
8400
2
Water and others
2000
Total
10400
(vi)
Other Contingent Expenses
(per month)
(Rs.)
1
Postage and stationery
1000
2
Telephone
2000
3
Repair and maintenance
2000
4
Consumable stores
5000
5
Packing materials
12000
6
Advertisement and Publicity
10000
7
Transportation and Travelling
6000
8
Insurance
3000
9
Laboratory expenses
2500
Total
43500
B. Working Capital (per month)
1.
i) Raw materials
294400
ii) Staff and Labour
78690
iii) Utilities
10400
iv) Other expenses
43500
Total
426990
2.
Working Capital (for 2
months) 426990 ×2 =
853980
C. Total Capital Investment
1
Fixed Cost(Land +Machinery)
4192980
2
Working Capital (for 2
months)
853980
Total
5046960
Financial Analysis
(1)
Cost of Production
(per annum)
(Rs.)
i)
Total Recurring Expenditure
5123880
ii)
Depreciation on Land and
Building @ 5 %
175000
iii)
Depreciation on machinery
and equipments @ 10%
56298
iv)
Depreciation on office
equipments @ 20%
16000
v)
Interest on total capital
investment @ 14%
706574
Total
6077752
(2) Total Sales Turnover
(per year)
(Rs.)
Cement Paint (water proofing)
250 M.T. @ Rs. 27000 per metric ton (27000
×250)
6750000
(3) Profit (per year)
(Rs.)
6750000- 6077752
672248
(4) Rate of Profit on Sales
Net profit per year ×
100
=
Total Turnover per year
=
9.96
(5) Rate of Return on Total
Capital Investment
Net Profit per year ×
100
=
Total Capital Investment
=
13.32
(6) Break-even Point
(i)
Fixed Cost (per annum)
(Rs.)
a)
Depreciation on Machines,
equipments @ 10%
56298
b)
Depreciation on office
equipments @ 20% (25,000 ×0.2)
16000
c)
Depreciation on building
@ 5 %
175000
d)
Interest on total capital
Investment @ 14%
706574
e)
Insurance ( 3,000 ×12)
36000
f)
40% of salary and wages
377712
g)
40% of other contingent
expenses (excluding Insurance, Utilities
etc.)
194400
Total
1561984
(ii)
Net Profit (per year)
672248
B.E.P.
Total Fixed cost ×100
=
Total Fixed cost + Profit
1561984 ×100
=
1561984 + 672248
=
69.91
Addresses of Machinery and Equipment
Suppliers
1. M/s. Ahmedabad Victoria Iron
Works Co. Ltd.
Dhudherwal Road,
Ahmedabad.
2. M/s. Bakshi and Sons
G.T. Road, Millar Ganj,
Ludhiana, Punjab.
3. M/s. Standard Metal Fabricators
1/5, Kirti Nagar,
New Delhi-110001.
4. M/s. Kusum Engg. Works
25, Swallow Lane,
Kolkata-700001.
5. M/s. Devi Dayal and Co.
Lal Kuan,
Delhi- 110006.
