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Product Code	:	29127 and 29128
Quality and Standards	:	IS 1748:1981
Production Capacity	:	Quantity: 420 MTs. Value : Rs. 25200000
Uploaded on	:	June 2007

Introduction

Graphite Crucibles are refractory containers specially shaped for metallurgical operations. These are made of a mixture of Graphite, Refractory Clay, Grog and other additives. These crucibles are termed as clay bonded Graphite crucibles according to the raw materials used. The crucibles are available with or without spout. These crucibles are used for melting ferrous, non-ferrous metals alloys and noble metals.

Market Potential

The main market for the product is foundry industry. With the growing industrial sector the need for specialized metal and alloy castings is increasing day-by-day. With the advent of many multinational automobile industrial units, many auto spare are manufactured in large numbers in Haryana, Delhi, Punjab and Maharashtra States. There is a good demand in these States for graphite crucibles. As per an assessment 8.5% growth in foundry and Casting Industry is estimated in the country. The use of Graphite Crucibles shall accordingly increase. There is a good scope of development of modern smallscale industries with the growing prospects of special casting metallurgical industry both for domestic and export market.

Basis and Presumptions

i. The envisaged production capacity is based on single shift basis on 300 working days in a year.

ii. The unit will purchase the technology from National Metallurgical Laboratory, Jamshedpur which have developed improved technologies for Graphite Crucibles.

iii. The costs given are based on the current market rates and may vary from time to time.

iv. The wages are as per the prevailing norms.

Implementation Schedule

Sl. No.	Activity	Period (in months)
1.	Preparation of Project Report and preliminary work with institutions, site selection	2
2.	Follow-up action for Term Loan sanction	1
3.	Acquisition of land and construction of buildings, selection of machinery, placing orders	3
4.	Supply of machineries and erection	2
5.	Getting power connection, completion of other formalities with various agencies, working capital, loan sanction etc., trial run and production	1
6.	Total implementation of the project including commencement of production	12

Technical Aspects

Process of Manufacture

The manufacturing process of the products is based on the improved technology developed by National Metallurgical Laboratory, Jamshedpur. The raw materials such as graphite, Refractory/plastic clay, grog and other additives are mixed in a pan mixer after taking proper batch proportions. The wet mass is then kept for ageing. The aged mix is then extruded in a de-airing pugmill and blanks are made. The crucibles are prepared from the blanks either by pressing in a hydraulic press or by jiggering. The shaped crucibles are then dried, glazed and fired in a kiln to develop strength and glaze.

Quality Control and Standards

The following BIS specifications may be referred for day-to-day quality control:

IS 1748:1981	Sizes of Graphite Crucibles
IS 8977:1978	Clay bonded Graphite Crucibles
IS 9927:1981	Methods for determination of life of Graphite Crucibles
IS 11321:1985	Graphite for Graphite Crucibles

Production Capacity

Clay-Graphite Crucibles of different sizes upto No. 500

Quantity	: 450MT (per annum)
Value	: Rs. 19530000

Motive Power

60 HP.

Pollution Control

The unit should be equipped with proper flue-gas exhaust system and dust collectors to control environment pollution. It has to follow the guidelines prescribed by State Pollution Control Board.

Energy Conservation

It is suggested to construct a low thermal mass kiln for firing of the product to save energy.

Financial Aspects
A Fixed Capital

( i ) Land and Building	(Rs.)
Land 1 Acre	1200000
Office: 50sqm. @5000 sq. m . Manufacturing sheds:	250000
400sqm @ 4000 sq. m.	1600000
Stores: 50sqm @5000 sq. m.	250000
Workers quarters 200 sq. m. @ 4200 sq. m.	840000
Water well, pump, pipelines and compound wall etc.	200000
Total	4340000

(ii) Machinery and Equipments

Description	Qty.	Value (Rs.)
Roller Crusher, Single roller size 350 x 300mm with a 7.5HP motor and accessories	1	120000
Disintegrator 14” size with 5HP Motor	1	50000
Pan Mixer, 0.5MT capacity with a 3 HP motor and other accessories	1	140000
Deairing pugmill, capacity 250 kg/hr. with a 5HP motor vacuum pump and other accessories	1	300000
Hydraulic press with all accessories cap: 1MT/day	1	345000
Jigger and Jolly with individual 1HP/2HP motor and accessories for making large size crucibles	4	60000
Electro Magnet	1	65000
Saggar Press, Hand operated with ram	1	90000
Glazing equipment comprising of a glaze tank, compressor, booth, spray gums and other fittings	1	85000
Wheel barrows for internal transportation of large crucibles	4	16000
Rotary screen for grading of grog with a 3Hp motor and other accessories erected on a platform	1	40000
Weighing scales 250kg. and 25kg.	1	15000
Test Eqpt. Misc. Eqpt. and tools	1	50000
5 Tonne capacity oil fired down draft kiln with good thermal insulation (back-up) and with a 25 metres high chimney, thermocouples and other draft measuring equipment	1	1000000
Installation and wiring	LS	150000
Office furniture and equipments		50000
Pollution Control equipments and dust collator		200000
Total		2776000
(iii) Preliminary and Pre-operative expenses like deposits, project cost (non-refundable) and other unforeseen expenditure)		50000
Total		2826000
(iii) Pre-operative Expenses		150000
Total		2976000

B. Working Capital (Per Month)

(i) Staff and Labour (per month)

Designation	Nos.	Salary	Total (Rs.)
Works Manager	1	12000	12000
Technical supervisor	2	8000	16000
Accountant	1	7000	7000
Clerk	2	4000	8000
Mechanic (Maintenance)	1	4000	4000
Skilled operators	4	5000	20000
Semi-skilled workers	4	4500	18000
Firemen	2	4800	9600
Unskilled labour	10	3000	300000
Watchmen	2	3000	6000
Total			400600
Perks @ 22%			88132
Total			488732

(ii) Raw Materials (per month)

Description	Qty.	Rate/ MT	Total
Graphite Powder (Flaky and Lump IS 11321 grade)	14MT	20000	280000
Crucible Grog	2MT	5000	10000
Silicon Carbide granules	2MT	60000	120000
Fireclay and Plastic Clay	40MT	1800	72000
Fireclay Grog	3MT	1800	5400
Coke Dust/Granules	10MT	3500	35000
Glaze and Chemicals	LS		35000
Consumables	LS		10000
Packing Materials	LS		15000
Total			582400

(iii) Utilities (per month)		(Rs.)
Power and Water	50 kWH	30000
Furnace oil	8 kL @ 30000 per kL	240000
Total		270000

(iv) Other Contingent Expenses (per month)	(Rs.)
Postage and stationery	2000
Transport and Conveyance	10000
Advertisement and Publicity	10000
Telephone	4000
Maintenance	8000
Insurance	2500
Other Contingent Expenses	5000
Total	41500
Total recurring expenditure (per month) (i+ii+iii+iv)	1382632

C. Total Capital Investment

i) Fixed capital	7316000
Working capita l (2 month)	2765264
Total	10081264

Financial Analysis

(1) Cost of Production (per annum)	(Rs.)
Total recurring cost	16591584
Depreciation on building @5%	217000
Depreciation on plant and Machinery @10%	192600
Depreciation on kiln @15%	150000
Depreciation on office furniture @20%	10000
Interest on total capital investment @13%	1310564.32
Total	18471748.32

(2) Total Sales Turnover (per annum)	Rs
By sale of 420MT of Graphite Crucibles (After allowing nearly 7% rejections) @ of 60000 per MT	25200000

(3) Profit (per annum)	=	Sales – Cost of production
	=	Rs. 25200000– 18471748.32
	=	6728251.68

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

	=	6728251.68x 100 ---------------
		25200000

	=	26.7

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

	=	6728251.68 x 100 ----------------------
		10081264

	=	66.74

(6) Break-even Point

Fixed Cost	(Rs.)
Depreciation on building @5%	217000
Depreciation on Plant and Machinery @10%	177600
Depreciation on Kiln and Chimney @15%	150000
Interest on capital investment @13%	1310564.32
40% of salaries	2345913.6
40% of other Contingent expenses	187200
Insurance	30000
Total	4418277.92

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

	=	4418277.92 x 100 -----------------------
		4418277.92 + 6728251.68

	=	39.64

Addresses of Plant and Machinery Suppliers

1. M/s. Keshab Engn. Co. Ltd.
Bose Park, P.O. Sikchar,
24, Paraganas (North),
(West Bangal)

2. M/s. Amic Industries (P) Ltd.
10, B.T. Road,
Kolkata - 700 056

3. M/s. Pappu Veeranna and Sons
Dhowleswaram Rajahmundry,
East Godavari District

4. M/s. Hari Machines Ltd.
Rajgangapur - 770 017

5. M/s. Gloheat Instruments (P) Ltd.
No. 73, 6th Main, 3rd Phase 4,
P. O. Box No. 5042, Peanya
Industrial Area, Bangalore.

Raw Material Suppliers

1. M/s. Patna State Graphite Minerals Co.
Titagarh (PO), (Orissa)

2. M/s. Laxmi Narayan Agarwal Co.
Sambhalpur, (Orissa)

3. M/s. Hindustan Graphite Refining and Products Co.
Opp. Petrol Pump, G.T. Road Kovvur,
West Godavari Dist., (A.P)

4. M/s. Grindwel Narton (P) Ltd.
4th Floor, 114 MG Road,
Bangalore

5. M/s. Indian Metal and Ferro Alloys
Terubali, Rayagada Dist.,
(Orissa)

6. M/s. Elector Thermics
C-5, SBH Colony,
Hyderabad - 500 034

7. M/s. East India Minerals
Fireylal Chowk, Ranchi,
(Jharkhand)

Shuttle Kiln Fabricators

1. M/s. Unifire
Shakespere, 16-12, Sarani,
4th Floor, Kolkata

2. M/s. Bengallium Industrial Funales
24-B, Carmae Street,
Kolkata - 700 016

3. M/s. Techno Thermo Projects Pvt. Ltd.
225/2, C.I.T. Road, Scheme VII-M,
Kolkata - 700 054

4. M/s. N.M. Kiln Pvt. Ltd.
A-706, Rail Vihar, Seetu
15-11, Jharza Road,
Gurgaon - 122 001

5. M/s. Sharma Kiln Technology
206, Hare Krishna Complex,
Opp. Kottawala Flats,
Ashram Road,
Ahmedabad - 380 007

6. M/s. Associated Industrial Furnaces
2/5, Sarai Julane, 1st Floor,
Okhla Road,
New Delhi - 110 025.