Welcome to Technopreneur

Product Code	:	94432
Quality and Standards	:	IS 458
Uploaded on	:	July 2007

Introduction

Reinforced cement concrete spun pipes upto 1000 mm dia are exclusively reserved for manufacture in the SSI sector. These pipes are widely used for water drainage, sewerage, culverts and irrigation. RCC pipes are classified as pressure and non pressure pipes viz. NPI, NP2, NP3, P1, P2, P3 for use in specific conditions. These pipes are made from cement, coarse and fine aggregate, sand, mild steel and HT rods and bars.

Market Potential

Public Health Engineering Department, Public Works Departments, Agriculture and Forest Department, National Highways, Environment Engineering Department, Panchayats Municipal Corporations are the bulk consumers of RCC spun pipes. Most of the customers are approved civil contractors who are executing the works of the Government Department and Public Sector Undertakings. Presently government is giving stress on rural irrigation and improving methods of water supply scheme, so the demand for pipes is increasing.

Technical Aspects
Process of Manufacture

The reinforced cage is first prepared on the cage-winding machine by hand process. The cage is then placed inside the pipe mould which is then hoisted up and mounted horizontally on the turn unions. It is rotated by driving shaft with variable speed arrangement, the rotation is kept slow in the beginning and then the speed is increased. The concrete mixture for the RCC spun pipe is prepared in proportion of 1:2:5:2:5 of cement stone, metal and sand respectively. The cement concrete is fed into the moulds during rotation which spreads inside evenly. The time required for completion of this operation depends upon the diameter and class of the pipe. The pipes are kept in the mould for 24 hours. On the following day the pipes are removed from the moulds and submersed in water in the curing tank for about 15-20 days depending upon the class of the pipe. The specimen of the pipes are subject to the following tests viz: (1) Hydrostatic pressure test (2) Three edge bearing test (3) Absorption test.

Quality Control and Standards

The Bureau of Indian Standards has formulated IS 458:1971, for maintaining Quality of the product.

Production Capacity (per year)

Quantity	: 20,000 Running meter
Value	: Rs. 6460000

Motive Power

20kW.

Pollution Control

The project does not create any noise or water pollution. The air pollution in mixing area need to be contained by providing cyclonic dust collector. Workers may use dust mask.

Energy Conservation

General precautions for saving electricity are required to be followed by the unit by adopting energy conservation techniques.

Financial Aspects
A Fixed Capital

( i ) Land and Building	(Rs.)
Land 2 acre Building @ 1200000 per acre	2400000
a) Office, Testing laborator y 35Sq. m. @ Rs4000	140000
b) Production shed 100 Sq. m. @ Rs2000	200000
c) Stores room 30 Sq. m. @ Rs3000	90000
d) Curing tank 40 x 20mtrs.	100000
e) Well, pump set, overhead water tank etc.	150000
Total	3080000

(ii) Machinery and Equipments

Description	Qty. Nos.	Value (Rs.)
Pipe moulding machine of 2 metre length complete set with 10HP motor	1	300000
Gauge winding machine	2	60000
Concrete mixer	1	80000
Collar winding drum with stand	2	40000
Gantry with pull-push trolley	1	160000
Testing equipments	LS	100000
Collar moulds complete with end rings, tie rods, riving ring for pipes 100mm to 600mm dia and 2 metre length pipes	40	280000
Pipe moulds 100mm to 600mm dia 2 metre with accessories	40	440000
Electrification and installation charges	LS	80000
Office equipment and furniture	LS	75000
Total		1615000

(iii) Total Fixed Investment	(Rs.)
Land and building	3080000
Machinery and Equipment	1615000
Pre-operative expenses	80000
Total	4775000

B. Working Capital (Per Month)

(i) Staff and Labour (per month)

Designation	Salary	Nos.	(Rs.)
Manager	15000	1	15000
Supervisor	8000	1	8000
Skilled workers	4500	6	27000
Un-skilled workers	3500	10	35000
Perquisites @22%			18700
Total			103700

(ii) Raw Materials (per month)			(Rs.)
Cement	20MT Rs.	4000/MT	80000
Steel	4MT Rs.	28000/MT	112000
Coarse and fine aggregate	LS		35000
Mould oil grease and misc. expenses	LS		40000
Total			267000

(iii) Utilities (per month)		(Rs.)
Electrical power	20kW	12000
Water	LS	3000
Total		15000

(iv) Other Contingent Expenses (per month)	(Rs.)
Postage and Stationery	2000
Telephone	3000
Repair and Maintenance	5000
Travelling expenses	3000
Transport charges	10000
Miscellaneous expenses	2000
Insurance	15000
Total	40000

(v) Total Recurring Expenditure (per month)	(Rs.)
Staff and labour	103700
Raw Material	267000
Utilities	15000
Other contingent expenses	40000
Total	425700

(vi) Total Working Capital for 2 months

851400

C. Total Capital Investment

Fixed capital	4695000
Working capital	851400
Total	5546400

Machinery Utilization

Sufficient and timely availability of Grey cement will ensure optimum utilization of the installed capacity. The pipes are kept immersed in water for curing purpose in such a way that one is not put on the other. Sufficient moulds are required to maintain regular production otherwise non-availability of required pipe moulds or collar moulds will be a bottleneck in the optimum capacity utilization.

Financial Analysis

(1) Cost of Production (per annum)	(Rs.)
Recurring Expenditure	5108400
Depreciation on Building @ 5%	42570
Depreciation on Machinery and Equipment @ 10%	74000
Depreciation on moulds @15%	108000
Depreciation on furniture @ 20%	15000
Interest on total investment @ 13%	721032
Total	6069002

(2) Turnover

Items	Qty	Rate	Value (Rs.)
RCC spun pipes 2 meter length	20000	340/ per pipe	6800000
	(– 5% rejection)		340000
Total			6460000

(3) Net Profit	=	Rs. 6460000– 6069002
	=	390998

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

	=	390998 x 100 ---------------
		6460000

	=	6.05%

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

	=	390998 x 100 ----------------------
		5546400

	=	7.05%

(6) Break-even Point

Fixed Cost	(Rs.)
Total Depreciation	239570
Interest on total investment	721032
40% of salaries	497760
40% of other Contingent expenses	120000
Insurance	180000
Total	1758362

B.E.P	=	Fixed cost x 100 ---------------------
		Fixed cost + Profit

	=	1758362x 100 -----------------------
		1758362+ 390998

	=	81.81%

Addresses of Machinery and Equipment Suppliers

1. M/s. Prakash Fabricators
1034 E, Rajaram Road,
Kolhapur (Maharashtra)

2. M/s. A. P. L. Industries
415, Dave Industrial Estate,
Bhakti Nagar Station Road,
Rajkot – 2 (Gujarat)

3. M/s. Buildtech Engineering Co.
Shree Ashadweep Complex,
16-Civil Lines,
Roorkee – 247 667,
(Uttar Pradesh)

4. M/s. Karthik Industries
36, J.C. Road,
Bangalore-560 002

5. M/s. Susanji Udyog Pvt. Ltd.
C-47, Industrial Estate,
Sanathnagar,
Hyderabad – 500 018

6. M/s. Apco Concrete Blocks and Allied Product
7th Mile, Kanakpura Road,
Doddasandra Post,
Bangalore – 560 062

7. M/s. Ashok Engineering Works
81, Ajit Industrial Estate Rakhial,
Ahmedabad – 380 023

8. M/s. Hydro Engineering Works
K1/116, CIDC,
Mori, (Gujarat)