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Product Code	:	94105
Quality and Standards	:	IS 2553:1971 IS 6480:1971 IS 6640:1972 IS 2533:1976
Production Capacity	:	Quantity: 13,800 Sq.mtrs. Value : Rs. 6817200
Uploaded on	:	June 2007

Introduction

Laminated safety glass has good industrial potential due to its multiple advantages in commercial and industrial applications though the product is not as popular as toughened glass. The main applications of laminated safety glass are:

i. Automobiles,
ii. Railways,
iii. Marine vessels,
iv. Aircrafts,
v. Defence,
vi. Household construction applications, and
vii. Other industrial applications.

The main advantages of laminated safety glass are:

i. On accidents the glass does not harm/injure the body,
ii. It acts as a good insulator,
iii. It is sound proof, and
iv. It has got a good strength compared to toughened and other sheet glasses.

Laminated safety glass is a sandwich made up of a PVC interlayer or interlayers adhered between two glass sheets. Laminated glass is more resistant to fracture than monolithic glass, but in case of fracture, the PVC interlayer holds the fragments in place.

Market Potential

There is a very good demand for setting up this product in small scale sector, in commercial and industrial applications. The main consumer of these products are Railways, Automobiles, Defence, Aircrafts, Marine vessels and in domestic applications. The growth of laminated safety glass industry depends upon the development of automobile industry and also in construction of multi-storeyed buildings. As the automobile industry is steadily growing, the demand for laminated safety glass is also increasing. Besides this, there is considerable demand for laminated safety glass as spares for replacement purposes. Therefore, there is good scope for setting up new units.

Basis and Presumptions

i. The production capacity of the unit has been worked out on the basis of single shift basis of 8 hours per day for 300 working days in a year.

ii. The unit is capable of manufacturing the laminated safety glass sheets in different shapes, sizes and thickness.

iii. The costs of machinery, equipments and raw materials are as prevailing at the time of preparation of this report.

iv. The wages proposed in the profile as per the prevailing wage practice.

v. The rate of interest of 13% is considered both for recurring and non-recurring investment.

vi. Margin money is generally about 25%, however, this varies according to the type of entrepreneur.

vii. Operative period of the project is around 12 years considering technology obsolescence rate and period of repayment of loan.

viii. To achieve full plant capacity 1 to 2 months trial production is required.

Implementation Schedule

Sl. No.	Activity	Period (in months)
1.	Survey for collection of data in respect of demand, raw material including power availability and technology	0 to 1 month
2.	Arrangement for margin money	1 to 2 month
3.	Preparation of project document and registration	1 to 2 month
4.	Financial assistance	3 to 4 month
5.	Selection of rented premises	3 to 4 month
6.	Electricity and water - tie up for availability	4 to 5 month
7.	Construction/selection of machinery	4 to 6 month
8.	Placement of order (machine)	5th month
9.	Erection and commissioning	7th month
10.	Recruitment of staff and labour	6 to 7th month
11.	Procurement of raw materials	7th month
12.	Trial run/modification	8th month

From inception to implementation of the project, it will take approximately eight months.

Technical Aspects
Process of Manufacture

The raw materials for manufacturing the laminated safety glass are ordinary sheet glass/float glass and PVC sheet. Sheet glass/float glass suitable for this product should be of good quality i.e. free from stone, weariness, stresses, strains, scratches and other surface defects. The important stages in the manufacture of laminated sheet glass are:

i. Raw glass sheet inspection
ii. Glass cutting
iii. Glass washing
iv. PVC interlayer cutting
v. Preparing the resin
vi. Assembly of sheet glass and interlayer
vii. Pouring resin on each side of the PVC between it and the glass
viii. Rolling and pressing
ix. Drying
x. Edge finishing
xi. Final inspection
xii. Packing

Quality Control and Standards

Quality Control and Standards Generally quality product should be free from defects and foreign materials which creates problems when it is in use. These defects can be controlled at every stage of the operations of the process by thorough checking, right from raw materials selection to finished products and packing. The relevant Bureau of Indian Standards are as follows:

IS 2553:1971	Safety glasses
IS 6480:1971	Toughened safety glass for ship side scuttles
IS 6640:1972	Toughened safety glass for windows
IS 2533:1976	Safety glass (Second revision) with amendments No. 1 and 2 and reaffirmed in 1976

Production Capacity (per annum)

Clay-Graphite Crucibles of different sizes upto No. 500

Quantity	: 13, 800 sq.mtrs. of Laminated safety glass
Value	: 6817200

Motive Power

10 HP.

Pollution Control

The product does not create any noise or water pollution. The air pollution will have to be continuously monitored.

Energy Conservation

Not applicable as far as fuel is concerned. Simple precautions and knowledge of effective utilisation of electric power is necessary.

Financial Aspects
A Fixed Capital

( i ) Land and Building	(Rs.)
Land 200 Sq. M @ Rs 3000 /Sq.m	600000
Build up area 200 sq mtr @ 5000 /sq mtr	1000000
Total	1600000

(ii) Machinery and Equipments

Description	Qty. (Nos.)	Amount (Rs.)
Glass washing and drying machine with blower	1	35000
Hand operated glass lamination machine with accessories	1	190000
Edge cutting and finishing machine	2	80000
Glass cutting machine with arm table cutting rail and swivel cutting head (for shaping)	1	80000
Racks for raw sheet glass	LS	15000
Electric oven size 8 × 8 × 8 with fan and temp. indicator	1	70000
Working tables	4	20000
Misc. equipments, grinding wheels, tools, balance, diamond cutter, electric stove etc.		30000
Office furniture		50000
Electrification and installation charges @ 10%		57000
Total		627000
(iii) Pre-operative Expenses/ Project Cost and Nonrefundable Deposits etc.		40000
Total		667000

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

Designation	No.	Salary month (Rs.)	Total (Rs.)
Production Supervisor	1	10000	10000
Cashier-cum-Accountant	1	6000	6000
Skilled workers	2	5000	10000
Un-skilled workers	4	3500	14000
Peon	1	3000	3000
Watchman	2	3000	6000
Total			49000
+ 22% perquisites			10780
Total			59780

(ii) Raw Materials (per month)

Particulars	Qty.	Rate (Rs.)	Value (Rs.)
3 mm thickness sheet float glass	2500 sq.mtrs.	140 per sq.mtr.	350000
PVC sheet	1250 mtrs.	40/mtr.	50000
Lamination chemicals	LS		20000
Packing materials	LS		5000
Total			425000

(iii) Utilities (per month)	(Rs.)
Power 1125 kWH @ Rs.5/unit	5625
Water	500
Total	6125

(iv) Other Contingent Expenses (per month)	(Rs.)
Postage and stationery	1500
Telephone	2000
Consumable stores	2000
Repairs and maintenance	2000
Transport and conveyance	5000
Advertisement and publicity	5000
Insurance	2000
Other unforeseen expenses	2000
Total	21500

(v) Total Recurring Expenditure (per month)	(Rs.)
Personnel	59780
Raw materials	425000
Utilities	6125
Other contingent expenses	21500
Total	512405
(vi) Working Capital (for 2months )	1024810

C. Total Capital Investment

Fixed capital	2267000
Working capital for 2 months	1024810
Total	3291810

Financial Analysis

(1) Cost of Production (per annum)	(Rs.)
Total recurring expenditure	6148860
Depreciation in Building @ 5 %	80000
Depreciation on furniture @ 20%	10000
Depreciation on machinery @ 10%	57700
Interest on total capital investment @ 13%	427935
Total	6724495

(2) Turnover (per annum)	(Rs.)
Sale of 13,800 sq.mtr. of laminated safety glass @ Rs.590 sq.mtr. (after allowing 5% rejection)	8142000
Total	8142000

(3) Net Profit (per year)	=	Turn over – Cost of production
	=	Rs. 8142000– 6724495
	=	1417505

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

	=	1417505*100 ------------------
		8142000

	=	17.41

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

	=	1417505x 100 ----------------------
		3291810

	=	43.06

(6) Break-even Point

Fixed Cost	(Rs.)
Depreciation on Building @ 5 %	80000
Depreciation on machinery	57700
Depreciation on furniture	10000
Interest on total capital investment	427935
40% of salaries	51744
40% of other contingent expenditure (excluding insurance)	93600
Insurance	24000
Total	744979

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

	=	744979 x 100 -----------------------
		744979 +1417505

	=	34.45%

Addresses of Machinery and Equipment Suppliers

1. M/s. Wessmake Industrial Products
B-104, Mayapuri, Phase-I,
New Delhi-64.

2. M/s. Mansfield Conveyors (P) Ltd.
S-77, Baddi Indl. Estate,
Delhi-42.

3. M/s. Wildbar Field (India) Ltd.
Mohur Street Building, 25-A,
Dr. Annie Besant Road,
Mumbai-18.

Raw Material Suppliers

1. M/s. Sri Jagadamba Plywoods
33/1, BVK Iyengar Road,
Bangalore-53.

2. M/s. A.S. Glass and Plywoods
8, Mysore Road, New Tharagupet,
Bangalore-2.

3. M/s. Dhariwal Glass
58, 2nd Floor, 21,
Killari Road,
Opp. T.V. Complex,
Bangalore-53.

4. M/s. Mahaveer Glass House
32, BVK Iyengar Road,
Bangalore-53.

5. M/s. Rachana Enterprises
69/1, 2nd Main,
8th Block, Jayanagar,
Bangalore-82.

6. M/s. Deepak Enterprises
39B, Mamulpet,
Bangalore-53.