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Product Code	:	94119 94131, 94132, 94133 94148, 94158, 94161 94168 and 94174
Quality and Standards	:	IS 1961: 1968 Glass Table wares. IS 1945: 1961 Glass Bottle for ink IS 1994: 1971 Glass container used for fruit preservation IS 1962 and 1974-Glass Bottle (wine) Glass Shells
Uploaded on	:	May 2007

Introduction

Hollow Glassware are made from silica sand and soda ash. Hollow Glassware contribute about 80% of total glass production. Major variety of hollow glassware items are given below:-

i. Different size and colours decorative cylindrical glass bottles
ii. Glass Tumblers
iii. Lemon Set
iv. Wine and bear mug and ice cream cup
v. Jar and jugs in different sizes and colour
vi. Lantern glass and chimney

There are about 19000 varieties of glass, which are manufactured in India.

Market Potential

Glass Hollow ware such as glass bottles, table ware, lemon set, tumbler, jar and chimney are being used since ancient times. These items have a great demand due to frequent use and regular breakage. Glassware are very much useful and essential for storage and packing of wine, food and chemicals etc. Demand of glass containers is increasing consistently. Glass containers are widely used in every household.

Basis and Presumptions

i. It has been taken into consideration that the unit will work on three shift basis for 300 days in a year.

ii. Production capacity-1st year 60%, 2nd year 70%, 3rd year onwards 80%.

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

iv. Interest rate at 13% per annum

v. Margin money-25%

vi. Operative period of the project is about 10 years.

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

viii. One time cullet would be used at the start of the furnace for melting. Cullet is produced there after during the regular melting and shaping process in the glass unit.

Implementation Schedule

Sl. No.	Activity	Period (in months)
1.	Land acquisition	2
2.	Building construction	8
3.	Purchase of machines	14
4.	Installation of machines	15
5.	Trial Production	16
6.	Commercial Production	18

Technical Aspects
Process of Manufacture

Glass hollow ware are manufactured by mouth blown or semi automatic process as given below:

a) Preparation of Batch

Different raw materials are weighed in proportion and mixed in mixer. Cullet glass are mixed in the above mixer and fed into the glass furnace.

b) Melting of Batch

The batch is fed in the furnace and melted at temp. 1400-1500ºC.

c) Shaping with Molten Glass

Molten glass is shaped by Mouth Blown Process. Molten glass (Gob) is taken out from furnace with the help of cast iron rods and blown, more glass is gathered and blown/pressed in the desired mould made of wood or metal.

These glassware are sent for annealing in the annealing chamber or leher to remove strains. Annealing is a process of slow cooling of glassware. The glassware are sorted and sent for packing.

Quality Control and Standards

BIS has published the following standard specifications for Hollow Glass ware:

Hollow Glass Ware

IS 1961:1968	Glass Table ware
IS 1945:1961	Glass Bottle for ink
IS 1994:1971	Glass container used for fruit preservation
IS 1962 and 1974	Glass Bottle (wine)

Financial Aspects
A Fixed Capital

(i) Land	App. Cost. (Rs.)
About 2000 sq. m. land will be required for the project	4000000

(ii) Building

Particulars	Size	Area sq. m.	Rate (Rs./ Sq.M.)	Cost (Rs.)
Workshed	50×10	500 sq. m.	3000	1500000
Office	10×5	50 sq. m.	4000	200000
Godown	10×10	100 sq. m.	3000	300000
Laboratory	5×5	25 sq. m.	5000	125000
Boundary Wall			LS	130000
Factory Gate and Watchman room			LS	105000
Total				2360000

(iii) Machinery and Equipments

Particulars	Indig-enous/ Imported	Nos.	Cost (Rs.)
Oil Fired Tank Furnace 5 MT	Indigenous	1	3000000
Chimney	“	1	200000
Anealing Lehr 4' x 75' fitted with heater and Motor 40 HP	“	1	320000
Compressor 50 HP	“	1	300000
Vacuum Pump	“	1	90000
Moulds and Dies LS	“	-	50000
Automatic batch mixer 5 HP	“	1	40000
Screening machine with 1 HP motor	“	1	25000
Magnetic Separator	“	1	25000
Weighing machine	“	1	25000
Oil tank storage capacity 50,000 litres	“	1	15000
Rotary pump for furnace	“	2	200000
Lathe machine 6'	“	1	30000
Drill machine	“	1	25000
Bench grinder 9"	“	1	8000
Testing equipments	“	LS	12000
Total			4365000
Electrification and installation of machines and equipments @22 %			960300
Transformer			96000
Furniture and fixture of office block			40000
Total(ii)			5461300
(iii) Pre-operative Expenses			90000
Total Fixed Capital (i)+(ii)+(iii)			7911300

B. Working Capital (per month)

(i) Personnel

Designation	Nos.	Salary / month	Total (Rs.)
Manager	1	12000	12000
Glass Technologist	1	14000	14000
Foreman	2	7000	14000
Supervisor	6	7000	42000
Accountant	1	6000	6000
Clerk	2	4000	20000
Storekeeper	1	4000	4000
Skilled worker	24	4000	96000
Un-skilled worker	22	4000	88000
Peon cum watchmen	4	3000	12000
Sweeper	1	3000	3000
Total			311000
+22% perquisites			68420
Total			379420

(ii) Raw Materials (per month)

Description	Qty.	Rate (Rs.)	Amount (Rs.)
Glass batch (Silica sand, soda ash and decoloriser	200MT	28000	560000
Cullet Glass	100MT	1900/Mt	190000
Furnace Oil	50000L	25/ltr.	1250000
Packing material	L.S.		60000
Total			2060000

(iii) Utilities (per month)
Electricity	80 H.P.×0.73×0.8×8×25×4	37376
Water	L.S.	3000
Total		40376

(iv) Other Contingent Expenses (per month)	(Rs.)
Postage and Stationery	2000
Telephone	2000
Repair and Maintenance	4000
Transportation charges	10000
Sales expenses	10000
Misc. Expenditure	10000
Total	38000

(v) Total Recurring Expenditure (per month)	(Rs.)
Salaries and wages	379420
Raw materials	2060000
Utilities	40376
Other Contingent expenses	38000
Total	2517796

(vi) Total Working Capital (on 2 months basis)

5035592

C. Total Capital Investment

Total fixed investment	7911300
Total working capital	5035592
Total	12946892

Financial Analysis

(1) Cost of Production (per annum)	(Rs.)
Total recurring cost	30213552
Depreciation on building @ 5%	118000
Depreciation on machinery and equipment @ 10%	242130
Depreciation on furniture and fixtures @ 20%	8000
Interest on total investment @ 13%	1683095.96
Depreciation on furnace @ 20%	600000
Total	32864778

(2) Sales (per year)	(Rs.)
2400 M.T. Hollow glasswares @ 15000 M.T.	36000000

(3) Net Profit (per year)	=	Sales – cost of production
	=	36000000 – 32864778
	=	3135222

(4) Net Profit Ratio	=	Net profit per year X 100 --------------------
		Sales per year

	=	3135222x 100 ---------------
		36000000

	=	8.71

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

	=	3135222x 100 ----------------------
		12946892

	=	24.22

(6) Break-even Point

(i) Fixed Cost	(Rs.)
Depreciation on Building	118000
Depreciation on machines and Equipment	242130
Depreciation on furniture, fixture and minerals	8000
Depreciation on Furnace	600000
Installation Investment interest @ 13%	1683095.96
40% of salary and wages	1821216
40% of other Contingent expenses	182400
Total	4654842

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

	=	4654842 × 100 -----------------------
		4654842 +3135222

	=
		0

	=	59.75

Addresses of Machinery Suppliers

1. M/s. Import India Ltd.
13-19, Gorva Industrial Estate,
Vadodra, (Gujarat)

2. M/s. Alock and Co. (P) Ltd.
7, Hasting Street,
Kolkata-700001.

3. M/s. Saini Ltd.
Vadodara
(Gujarat).

4. M/s. Glass Equipments (India) Ltd.
Bahadurgarh
(Haryana)

5. M/s. Allied Research and Engineering (Pvt.) Ltd.
Sangli, (Maharashtra)

Raw Material Suppliers

1. M/s. Raj Kamal Silica Works
P.O. Shankergarh,
Distt. Allahabad.

2. M/s. Ajmer Mineral Grinding Corporation
Ajmer, (Rajasthan)

3. M/s. Pioneer Chemicals Co.
Tilak Market, Sadar Bazar,
Delhi-110006.

4. M/s. Standard Minerals
8, S, Deviji Street,
Mumbai-40003.

Borax

1. M/s. Borax Morarji Co. Ltd.
Mahatma Gandhi Road,
Ambernath, Distt. Thane
(Maharashtra)

Soda Ash

1. M/s. Tata Chemicals
Meethapur (Gujarat)

2. M/s. Sahn Chemicals Works
Sahanpur, Varanasi.

Refractories

1. M/s. Belpahar Refractories Ltd.
48, Chaurayee Road,
Kolkata.

2. M/s. Carborundum Universal Ltd.
11/12, North Bitch Road,
Chennai.

3 M/s. Orissa Industries Ltd.
P.O. Narang Distt.
Cuttack (Orissa)

4. M/s. Kumar Dubhi Fire Clay and
Silica Works
P.O. Kumar Dubhi,
Distt. Dhanbad.