Welcome to Technopreneur

Product Code	:	94389, 94330 and 94341
Quality and Standards	:	IS 11475:1985 Stoneware Dinner ware IS 2838:1984 Stoneware containers for general purpose
Production Capacity	:	Qty. : 600 M.T. (per annum)
Uploaded on	:	May 2007

Introduction

Crockery ware are being manufactured in earthenware, stoneware, vitreous china and bone china. This project profile is prepared for the manufacture of tableware, which comprises crockery items and some other articles made of stoneware. Under the group of tableware cups, saucers, plates, bowls, tea sets, dinner, sets jars, barnels etc. are covered. They are impermeable to most of the liquids and water absorption is less than 0.5%. Ceramic crockery ware have their own place in the field of kitchenware due to their outstanding properties over melamine and stainless steel wares, as these are more hygienic, easily cleanable, heat resistant etc. The main uses of these items are in houses, railway, defence, canteens, restaurants, hotels etc.

Market Potential

Stoneware tableware and other items are used in houses, hotels, restaurants, tea stalls, railway canteens, defence canteens etc. The installed capacity of the industry located mostly in the Northern parts of the country is estimated around 1,40,000 M.T per annum. However, in the southern region, production of these product is less than the demand. On the national level demand of the product is greater than the supply. This product has good scope in international markets, mainly in Gulf and South African Countries. It is estimated that demand of this item is increasing steadily at the rate of 10% per annum. The demand which was subdued in the past 3-4 years due to the use of substitute items made of melamine and steel have again shifted to ceramic rockery. There is a good scope for encouraging new units in this line of activity especially in the southern part of the country.

Basis and Presumptions

Efficiency and working hours considered for full capacity utilization:
(a) 80% efficiency.
(b) 8 working hours per day and 300 days in a year.
(c) Wages are taken as per the prevailing norms.
(d) Interest is taken @ 13% a nnum. It is expected that the project can be implemented within one-year from the project report stage.

Technical Aspects
Process of Manufacture

The raw materials like quartz, felspar, ball clay, fire clay etc. are charged in ball mill in desired proportion with 30- 40% water and ground to the fineness of 100-120 No. mesh. China clay and other plastic clays which are white burning are blunged in blunger with 30- 40% water. The slurry from ball mill and blunger is mixed and passed through fine mesh and electromagnet in order to remove the iron particles from the slurry. It is mixed properly in agitator tank from where it is passed through filter press for dewatering to make filter cakes. These cakes are fed into de-airing pug mill to extrude the compact body. While the round shaped articles are made by this body on Jigger and Jolly, other shapes are made by slip casting process. For casting, slip is made and poured into the moulds of plaster of paris. The articles are finished, glazed, and fired at the temperature of 1250- 1280ºC. Tunnel Kiln is proposed for firing in this project profile. Use of D.D Kilns and shuttle Kilns is also in practice but not economical. The articles taken out from the kiln are sorted and packed for selling.

Quality Control and Standards

The Bureau of Indian Standards has formulated and published IS 11475:1985 Stoneware Dinnerware for carrying out
various tests and control of the quality of the product.

Production Capacity (per annum)

Quantity	: 600 MT
Value	: Rs.

Motive Power

75 H. P.

Pollution Control

For the purpose of pollution control, it is advisable to provide dust collecting system and necessary retrofitting with the kiln to reduce waste gas pollution. The unit may seek NOC from the concerned authority.

Energy Conservation

Crockery stoneware industry needs energy conservation in fuel as well as electricity. Ceramic fiber lined tunnel Kiln is proposed in the project profile which conserves around 30-35% fuel when compared with conventional DD Kiln.

Financial Aspects
A Fixed Capital

(i) Land and Building	(Rs.)
Land 3000 Sq. m.@ Rs. 2000 Sq.m Building	6000000
Machinery shed 300 Sq. m Rs. 7000 Sq. m	2100000
Kiln shed 150 Sq. m.@ Rs. 8000	1200000
Raw materials Materials shed 100 Sq. M.@ Rs. 7000 Sq.m	700000
Finished goods godown 100 Sq. m. @ Rs. 7000 Sq. m	700000
Office 60 Sq. m. @ Rs. 5000 Sq. m	300000
Boundary walls etc. LS @Rs.1000/m	440000
Total	11440000

(ii) Machinery and Equipments

Production Unit Description	Ind./ Imp	Qty.	Price (Rs.)
Ball Mills size 1800 x 1800 mm, with all accessories and 10 HP Motor each	Ind.	2	500000
Ball Mills size 900 x 900 mm, with all accessories and 7.5 HP Motor	Ind.	1	90000
Screw blunger, capacity 5000 Litre with 5 HP Motor and cemented Tank	Ind.	2	200000
Vibrating screen size 900 mm x 900mm With all accessories and 1 HP Motor	Ind.	2	60000
Electromagnet with rectifier etc.	Ind.	1	40000
Agitator with 3 HP Motor and Cemented Tank	Ind.	1	70000
Diaphragm pump, storke 225 mm suction 7.5 mm with 7.5 HP Motor	Ind.	1	95000
Filter press chamber dia 600 mm number of plates 50 No.	Ind.	1	200000
De-airing pugmill with vacuum pump etc. with 5 HP Motor	Ind.	1	350000
Disintegrator size 550 cm with all accessories and 7.5 HP Motor	Ind.	1	90000
Jigger and Jolly with 5 HP Electric Motor	Ind.	15	105000
Sagger Press Power operated with 5 HP Motor	Ind.	1	90000
Water Pump set with 2 HP Motor	Ind.	1	30000
Pot Mill, Pot No. 6 Pot size 9" x 10" with Electric Motor of 2 HP	Ind.	1	30000
Total			1950000
Electrification and installation charges @ 10% on cost of machinery			195000
Testing equipments			140000
Misc. tools, Racks, Trolleys etc.			90000
Cost of office equipments			100000
Total			2475000

Kilns	(Rs.)
Ceramic fibre lined push bat tunnel Kiln with control system oil storage tank, combustion fan, hydraulic pusher and other equipments Specifications	3500000
Length	24000 mm
Setting width	900 mm
No. of Burners	4 Nos.
Power required for auxiliary equipment	10 HP
Capacity	2 MT per day (Crockery ware)

(iii) Pre-operative Expenses	300000
Total fixed capital (i+ii+iii+Kiln)	17715000

B. Working Capital (per month)
(i) Personnel (per month)

Designation	Nos.	Salary / (Rs.)	Total (Rs.)
Manager-cum-ceramist	1	16000	16000
Supervisors	2	8000	16000
Skilled workers	15	6000	90000
Semi-skilled workers	15	5000	75000
Fitter	1	6000	6000
Electrician	1	5000	5000
Accountant	1	7000	7000
Clerk-cum-Typists	2	5000	10000
Peon	1	3000	3000
Watchman	2	3000	6000
Total			234000
Perquisites @ 22% of total Salary			51480
Total			285480

(ii) Raw Materials (per month)

Items	Ind/ Imp	Qty	Rate (Rs.)	Total (Rs.)
Quartz/Silica Sand	Ind.	13 MT	1500/MT	19500
Felspar	Ind.	10 MT	1500/MT	15000
China clay	Ind.	10 MT	3000/MT	30000
Ball Clay	Ind.	5 MT	1800/MT	9000
Fire Clay	Ind.	20 MT	2000/MT	40000
Marble/Calcite	Ind.	750Kg	2000/MT	1500000
Zinc Oxide	Ind.	50/Kg.	65/Kg.	3250
Zirconium opacifier	Ind.	250 Kg.	60/Kg.	15000
Barium Carbonate	Ind.	75 Kg.	40/Kg.	3000
Colouring agents	Ind.	LS		10000
Plaster Paris	Ind.	2MT	2200 MT	4400
L.D.O (Fuel)	Ind.	10KL	35000/k litre	350000
Kiln furniture	Ind.	LS		60000
Packing materials	Ind.	LS		10000
Total				2069150

(iii) Utilities (per month)

Power charges 62 kW.

55800

(iv) Other Contingent Expenses (per month)	(Rs.)
Postage and Stationery	2000
Telephone	4000
Consumable stores	10000
Repair and maintenance	5000
Transport Charges	10000
Advertisement and publicity	5000
Insurance etc.	5000
Misc. expenses	10000
Total	51000

(v) Total Recurring Expenses (per month)	(Rs.)
Personnel (wages)	285480
Raw materials	2069150
Utilities	55800
Other contingent expenses	51000
Total (L.S.)	2461430

(vi) Total Working Capital for 2 months

4922860

C. Total Capital Investment

1. Fixed	17715000
2. Working capital (2 months)	4922860
Total	22637860

Machinery Utilization (on the basis of 24 hours working)
Ball Mills	100%
Screw blunger	100%
Filter press	80%
Jigger Jolly	80%
Tunnel Kiln	80%

Financial Analysis

(1) Cost of Production (per annum)	(Rs.)
Total recurring expenditure	29537160
Depreciation on building @ 5%	5720000
Depreciation on machinery and Equipments @ 10%	247500
Depreciation on kiln @ 20%	700000
Interest on total capital investment @ 13%	2942922
Total	39147582

(2) Turnover (per year)

Items	Qty	Rate (Rs.)	Value (Rs.)
Stoneware Crockery items	600 MT	70000 MT	42000000
Deducted 5% towards rejection			2100000
Total			39900000

(3) Net Profit (per year)	=	Rs. 39900000 – 39147582
	=	752418

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

	=	752418x 100 ---------------
		39900000

	=	1.89

(5) Rate of Return	=	Net profit per year x 100 ---------------------------
		Total investment

	=	752418x100 ----------------------
		22637860

	=	3.32

(6) Break-even Point

Fixed Cost	(Rs.)
Depreciation on Building and equipment and Kill	6667500
Interest on total investment	2942922
40% of other contingent expenses	220800
40% of salary and wages	1370304
Insurance	60000
Total	11261526

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

	=	22637860 x100 -----------------------
		22637860 +752418

	=	93.74

Addresses of Machinery Suppliers

1. M/s. Amic Industries Pvt. Ltd.
80-D, Dr.Suresh Sircar Road,
Kolkata-700014.

2. M/s. Modern Engg. and Fabricating Works
Behind Kubeshwar Mahadev,
Saijpur (Ambavadi), Naroda Road,
Ahmedabad-380016.

3. M/s. Lokmanya Engg. Works
20, Bharat Khand Cotton Mills
Compound, Naroda Road,
Ahmedabad-380016.

4. M/s Keshab Machineries Pvt. Ltd.
Bose Park, P.O. Sukeher,
24, Parganas Dt.,
West Bengal

5. M/s. Hindustan Company
123/7, Gopallal Tagore Road,
Bon Hoogly,
Kolkata-700035.

6. M/s. D.K Engg. Works,
8, Panchanathala New Road,
Balgharia, Kolkata -700056.

Tunnel Kiln/Khuttle Kiln Suppliers

1. M/s. Bengal Lion (Industrial Furnace) Ltd.
27-B Camac Street, Kolkata

2. M/s. Teksago-Bhagat Carakiln Pvt. Ltd.
D-828, New Friends Colony,
New Delhi-110005.

3. M/s. Sharma Kiln Technology Pvt. Ltd.
206, Hare Krishna Complex,
Opp. Kothawala Flat,
Ashram Road, Ahmedabad.

4. M/s. N.M Ceramic Kiln.
Post Box No. 30, B-8 Ram
Balram Apartment,
Kalol- 382721 (Gujarat)

5. M/s. Neptune Group Companies
252, GIDC Ind. Estate,
Phase II, Modhera Road, Dediasan,
Mehasana-384002.

Raw Material Suppliers

1. M/s. Golachar pallwad and Co.
Opp. Railway Station, Gandhi Nagar,
Ajmer Road, Beawar, (Rajasthan)

2. M/s. Jotya Prakash Mining Works
4, Gupta Gali Beawar,
(Rajasthan)

3. M/s. Satya Prakash Minining Works.
2, Gupta Gali, Beawar 305901
(Rajasthan)

4. M/s. Ashwain and Co.
Arsodia, Taluka-Idar,
Pin 383430.

5. M/s. Hindustan China Clay Works
Papinacheri, (Kerala)

6. M/s. Tahala Ram and Sons
Rathkhan,
Bikaner (Rajasthan)

7. M/s. Multani Minerals
Statopm Road,
Thangadh (Gujarat)

8. M/s. Ceramills Glaze and Ziroonium Co.
Daultabad Road, Gurgaon, (Haryana)

9. M/s. Hemvathi Nandan Nitrates (P) Ltd.
61-A, Industrial Development
Area, Chemical Zone,
Phase II, Mallapur, Nacharam,
Hyderabad (A.P.)

10. M/s.Shahzips (P) Ltd.
55, Industrial Estates,
Nunhai, Agra.

11. M/s. Ferro Coatings and Colours Ltd.
Post Koka, 24 Parganas,
Kolkata (W.B).

12. M/s. Rajasthan Plasters and Industries
Out side Coga Gate,
Bikaner (Rajasthan)

13. M/s. Snow-White Industries
40, Manendra Nagar, Rishikesh,
Dehra Dun (Uttaranchal)