Welcome to Technopreneur

Product Code	:	94389
Quality and Standards	:	IS 5786 (Part I):1978
Uploaded on	:	May 2007

Introduction

Ceramic cores for resistors are specialized ceramic material made out of steatite porcelain. These cores are in the form of rods and tubes of various diameters and length. It is manufactured by using highly pure raw materials like calcined alumina with addition of small quantity of pure clay. These are used in consumer electronic products such as radios, televisions and sophisticated electronic instruments.

Market Potential

The demand of the product is increasing day-by-day as development of electronic industry is showing upward trend. Our country has a very big concentration of electronic industries. In view of the fast development in the industrial activity in the field of electronics, the demand for the technical ceramics is ever increasing and creating wide scope for setting up new units.

Basis and Presumptions

i. It has been taken into consideration that the unit will work on single shift basis for 300 days in a year. The firing operations are, however, to be carried out continuously on three shifts basis till particular firing cycle is completed in all respects.

ii. To achieve full production 1 to 2 months trial production is required.

iii. Labor and wages are mentioned as per the prescribed Minimum Wages Act.

iv. Interest rate 13% on total capital investment.

v. The cost of land, construction charges, cost of machinery and equipment, raw materials, and consumables, other expenditure etc. indicated in the profile are based on the prices prevailing at the time of preparation and are subject to necessary changes from time to time based on local conditions.

Implementation Schedule

Sl.No.	Activity	Period (in months)
1.	Registration as SSI, site selection, processing for financial assistance.	6
2.	Procurement of machinery, their installation and trial run.	6
3.	Time required for commercial operation of the plant	6
Total		18

Technical Aspects
Process of Manufacture

China clay, talc and barium carbonate are the main raw materials required for the manufacture. All the raw materials in powdered form (150 to 200 mesh) are taken in proportion and charged into the ball mill. Wet grinding is carried out by adding sufficient quantity of water. The main objective of ball mill is to get a homogeneous mixture. The ground material is discharged into an agitator through an electromagnet and sieve. The slurry is then sent to the filter press where filter cakes with 18-20% water content are obtained. Filter cakes are charged into de-airing pugmill and cores are extruded by fixing the desired die. The shaped cores are dried and fired in an electric or muffle furnace at a temperature of 1300ºC after which the cores are trimmed and packed for dispatch.

Quality Control and Standards

IS 5798 (Part I) General requirements and methods of test.

Production Capacity

This scheme envisages manufacture of 600 MT of ceramic cores per annum of various diameters.

Pollution Control

The project does not create any noise or water pollution. The latest shuttle is more fuel efficient. The smoke emission will have to be continuously monitored as per rule.

Financial Aspects
A Fixed Capital

(i) Land and Building	(Rs.)
a) Land 1000 sq. meter @Rs 4000 sq. meter	4000000
b) Building : Built-up area workshed 400 sq. meters. @ Rs. 6000 sq. mtrs.	2400000
Storage shed 100 sq. mtrs. @ Rs. 7000 sq. mtrs.	700000
Office, Laboratory and chowkidar's cabin 200 sq. mtrs. @ Rs. 7000 sq. mtrs.	1400000
Total	8500000

(ii) Machinery and Equipments

Description	Rate (Rs.)	Nos.	Total price (Rs.)
Ball mill size 1350 x1200 mm with porcelain lining, pabbles 10 HP motor, starter and accessories	130000	3	390000
Vibrating screen 10"×18"with 0.5	25000	2	50000
HP motor, starter and accessories Electromagnet/ permanent magnetic separator	10000	3	30000
Agitator capacity 1000 ltrs. with 3 HP electric motor and accessories	60000	2	120000
Diaphram pump with 5 HP motor and accessories	90000	1	90000
Filter press, Plates 500	95000	2	190000
De-airing extruder, suitable for drawing rods/tubes of sizes 1mm to 25mm dia cap.50 kgs./hr.	160000	2	320000
Drying oven size 1800x1200x900mm with exhaust fan temp, controlling etc.	200000	1	200000
Centreless grinder, capable of trimming rods of 1 mm to 25mm with motor, starter and accessories	100000	3	300000
Weighing scale, platform type cap. 500 kgs.	22000	2	44000
Laboratory equipment for testing of water absorption, shrinkage and other tests		L.S.	120000
Total			1854000
Dies for various rods, tubes hand tools and other misc. equipments		L.S.	70000
Office equipment and furniture		L.S.	100000
Electrification and Installation		L.S.	150000
Shuttle kiln with L.D.O. as fuel blower, burner and other accessories etc.		L.S.	1300000
Total			1620000
(iii) Pre-operative expenses			130000
Total			3604000

B. Working Capital (per month)
(i) Staff and Labour

Designation	Nos.	Salary / month	Total (Rs.)
Works Manager	1	17000	17000
Technical supervisor	2	9000	18000
Accountant/cashier	1	7000	14000
Operator	6	5000	30000
Semi-skilled workers	8	5000	40000
Un-skilled workers	5	3000	15000
Watchman/Peon	2	3000	6000
Total			140000
Perquisites@ 22%			30800
Total			170800

(ii) Raw Material (per month)

Description	Qty.	Rate (Rs.)	Total (In Rs.)
High Alumina calcined	10MT	6000	60000
China clay	29MT	3000	87000
Ball clay	3MT	1800	5400
Calcite	3MT	2000	6000
Steatite	9MT	2000	18000
Binders, packing materials	L.S.		4000
Total			180400

(iii) Utilities (per month)	(Rs.)
Average consumption of 10,000 units/months @Rs. 5 / units	50000
L.D.O. 10,000 ltrs. @Rs. 35 ltrs	350000
Total	400000

(iv) Other Contingent Expenses	(Rs.)
Postage and Stationery	2000
Telephone	4000
Consumables stores	10000
Repair and Maintenance	10000
Transportation charges	5000
Advertisement and Publicity	10000
Sales expenses	10000
Insurance	2500
Total	53500

(v) Total Recurring Expenditure (per month)	(Rs.)
Salaries	170800
Raw materials	180400
Utilities	400000
Other contingent expenses	53500
Total	804700
Total Working Capital (on 2 months basis)	1609400

Machinery Utilization

The firing is the bottleneck in this industry. The capacity utilization is considered to be 75% of the total installed capacity.

C. Total Capital Investment

Total fixed capital	12104000
Total working capital	1609400
Total	13713400

Financial Analysis

(1) Cost of Production (per annum)	(Rs.)
Total recurring cost	9656400
Depreciation on building @ 5%	425000
Depreciation on machinery and equipment @ 10%	185400
Depreciation on furnace @ 20%	260000
Depreciation on moulds and fixtures @ 20%	14000
Depreciation on office equipment@25%	25000
Total interest @ 13% on Total capital Investment	1782742
Total	12348542

(2) Turnover (per year)

Item	Qty.	Rate	Value (Rs.)
Technical ceramics (resistor corer)	600 MT	24000/MT	14400000

(3) Net Profit (per year)	=	Turnover – cost of production
	=	Rs. 14400000– 12213682
	=	2051458

(4) Net Profit Ratio	=	Net profit per year x 100 --------------------
		Turnover per year

	=	2051458 x 100 -------------------
		14400000

	=	14.25

(5) Rate of Return	=	Net Profit per year x 100 ---------------------------
		Total Investment

	=	2051458 x 100 -------------------
		13713400

	=	14.96

(6) Break-even Point

Fixed Cost	(Rs.)
Total Depreciation	909400
Total Interest	1782742
40% of salary and wages	816000
40% of other Contingent expenses (excluding insurance)	244800
Insurance	30000
Total	3782942

B.E.P	=	Fixed Cost × 100 -----------------------
		Fixed Cost + Net Profit

	=	3782942 x 100 -----------------------
		3782942 + 2051458

	=	64.84

Addresses of Machinery Suppliers

1. M/s. Lokmanya Engg. Works
26, Bharatkhand Cotton Mill
Compound, Naroda Road,
Ahmedabad-380016.

2. M/s. Jivanlal Shiv Panchal
Opp. Old Civil Hospital,
Gheekanta Road,
Ahmedabad.

3. M/s. Modern Engg. and
Fabrication Works
Behind Kubeshwar Mahadev,
Saijpur (Ambravadi),
Ahmedabad

4. M/s. Bombay Furnace (P) Ltd.
5, Sodium House,
Veer Nariman Road,
Mumbai-400 020.

5. M/s. Associated Industrial
Furnace Pvt. Ltd.
F-19, Sector XI,
NOIDA, Ghaziabad (U.P.)

6. M/s. Electrotherma Furnace (P) Ltd.
32, B-II Phase,
Pooja Industrial Area,
Bangalore.

7. M/s. Sharma Kiln Technology
Kothmala Flat, Harekrishna
Complex, Near Paldi,
Ahmedabad-380 007.

Raw Material Suppliers

1. M/s. Colkem India Ltd.
Noble House, Swaroop Nagar,
Udaipur-313001
(Rajasthan)

2. M/s. Gujarat Minerals
Opp. S.T. Stand,
Vejalpur-363 721, Taluka Kalol,
Distt. Panchmahal, (Gujarat)

3. M/s. Ashok Minerals and Grinding Ind.
F-237-238, MIA, Modri,
Udaipur, (Rajasthan)

4. M/s. Sonpura Mines and Mineral Suppliers
Ravi Sarkar Pranshankar Road,
Thangadh-363 530
(Gujarat)

5. M/s. Tehla Ram and Sons
Rathkhana, Bikaner,
(Rajasthan)