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Product Code	:	94107
Quality and Standards	:	IS 2553:1971 IS 6180:1971 IS 6640:1972
Production capacity	:	Quantity: 4,80,000 sq.ft. Value : Rs.1,98,00,000
Uploaded on	:	July 2007

Introduction

Toughened glass acquires a degree of strength for excess of the strength of normal glass sheet or plate glass, which if broken shatters into small and comparatively harmless pieces. It is claimed that the resistance to mechanical stock of toughened plate glass is 4 to 5 times more than that of ordinary plate glass. A toughened glass has better resistance to the vibration, mechanical shock and abrasion.

Toughend Glass has to pass the following important tests:

i. Transfer strength test on sheets on simply supplied (Modules of rupture and electricity)
ii. Impact test: By following weight on sheets supported on two wooden battens
iii. Impact by falling weight on sheet evenly bedded (on putty)
iv. Impact by falling weight on edge of sheet
v. Repeated twisting tests
vi. Sand blast abrasion
vii. Thermal tests

Because of the strength and other specific physical properties mentioned above, it finds applications in the following fields:

i. Automobile	:	Cars, trucks, industry buses, tempos etc.
ii. Railways	:	Coaches
iii. Defence	:	Fleets, vehicles factory
iv. Commercial	:	Hotels, shops complex
v. Air ports	:	Doors

Market Potential

With increased transportation facilities the demand of the product is increasing at a steady pace specially in the automobile industry, railways, ships building both for production and replacement.

Basis and Presumptions

The project is based on single shift of 8 hours with 300 working days.

Implementation Schedule

Sl.No.	Activity	Period (in months)
1.	Project preparation and acquirement of shed, provisional registration etc.	2
2.	Procurement of machinery and raw materials	6
3.	Installation of machinery and equipment, appointment of labours etc.	2
4.	Procurement of raw materials and starting trial production	1
Total		11

Technical Aspects

Process of Manufacture

The glass plate is heated to a temperature above its softening point and then subjected to rapid cooling. The glass is suddenly chilled and in this process contracts towards the core. It stretches until it has solidified and is no longer able to contract further at this stage the core is still soft. It contracts against restrained exercise by the solidified upper layer of the glass. This compression is responsible for the strength of the glass sheet, which is limited to about 20,000 lb/sq.inch. Thus it is highly stressed and the resultant force is able to nullify the external impact.

The intensity of the stresses depends on the rate of cooling, co-efficient of expansion, thermal conductivity of the glass, its specific heat, elasticity, and certain other physical properties.

Toughening Process

The raw plate glass sheet which is free from waviness, distortion etc., is cut to required size and shape and then all the edges are ground and polished as per end use of the product. This is called edge grinding and polishing and is very important for toughening because it will lead to breakages during process. No glass sheet can be toughened without edge grinding and polishing.

Washing and Drying

After the edge grinding and polishing the glass sheets are washed manually or by machine and then dried. The glass sheets are fed into the furnace (Electrically operated). The sheets are kept in the furnace above its softening point, which varies according to the composition of glass. After attaining required temperature the glass sheets are removed out of the furnace and placed in the air blowing quenching boxes for 20 to 25 seconds. After quenching glass sheet is toughened. For bend glass toughening, the glass sheets passes through a set of dies (as per shape) after furnace and then to the quenching boxes.

Testing

After toughening all the sheet glasses are passed through the polariscope inspection.

Quality Control and Standards

IS 2553:1971
IS 6180:1971
IS 6640:1972

Financial Aspects
A Fixed Capital

( i ) Land and Building		(Rs.)
Land	About 3000 sq.mtrs. @ Rs.2000	6000000
Built up area	Work shed = 400 mtrs @ 4000	1600000
	Building, workshop 100mtrs @ 3000	300000
	Laboratory block 40 mtrs.	110000
	Boundry wall	100000
	Water Tank	100000
Total		8210000

(ii) Plant and Machinery

Description	Imp/ Ind.	Qty.	Value (Rs.)
Electric toughening furnace complete with refractory lining, heating elements, thermo-couples, recorders, operating panel board, oil circuit breaker, temperature controller etc. to heat the sheet glass at its softening point as per following specifications:	Ind.	1	2000000
Maximum kW: 185
Maximum temp. 800ºC
No. of zone: 6
Maximum sheet glass size: 84” x 36” (7'x 3')
Electric supply: 400/440V, 3 phase
Air quenching blower with motor dia 1450 mm, motor 175 HP for cooling heated glass	Ind.	1	550000
Super structure and ducting (Fabricated locally)	Ind.	1	250000
Hydraulic equipment for curved sheets	Ind.	1	600000
Blowing boxes and moulds for curved sheets	Ind.	1 set	80000
Edge working machine for edge arising with motor, starter, grinding wheel, water tough and V belt	Ind.	2 sets	120000
Vertical notching machine complete with motor, starter, V belt etc., for edge working	Ind.	1	70000
Vertical grinding machine complete with motor, starter, V belt etc., for edge working	.Ind.	1	80000
Vertical polishing machine with motor, starter, V belt etc.	Ind.	1	80000
Drilling machine for drilling holes in the sheet glass for shaping suitable drilling 1” bore with 3” x 2” cast iron table with 10”/12” drilling centre	Ind.	1	100000
Cutting machine with arm table, cutting rail and swivel cutting head for shaping	Ind.	1	100000
Drying and washing machine with blower, starter, heater conveyor, roller etc., for washing and drying the sheets	Ind.	1	200000
Testing equipments	Ind.
Rectification machine to detect surface scratch	Ind.	1	40000
Polariscope inspection line with poloroid sheet, light etc., for testing the strain/in the glass	Ind.	1	35000
Other testing equipments for testing	Ind.	1	30000
Maintenance and workshop machines
Lathe machine complete with accessories	Ind.	1	180000
Pillar drilling machine	Ind.	1	20500
Power saw machine 10”	Ind.	1	20000
Hand drill 25 mm size	Ind.	1 set	10000
Hand grinder 6” size	Ind.	1	10000
Tools for die making	Ind.	LS	20000
Bench vice	Ind.	2 sets	8000
Compressor	Ind.	1	50000
Pumps for water supply	Ind.	2	50000
Total			4703500
Electric Sub-station
LT panel
Electricals like busbar, distribution board, main switch, cables etc.			1000000
Taxes, freight octroi, transit expenses and handling including transformer 10%			300000
Erection and commissioning such as unit construction, steel structures etc., and supervisory charges 7%			225000
Electrification charges 7%			225000
Contingencies and price escalation 5%			150000
Misc. equipments such as trolleys, glass cutting tables etc.			50000
Office equipment like typewriter,almirah, furniture, trolleys for carrying sheet glass etc.	LS		100000
(iii) Pre-operative Expenses			50000
Total			6803500

B. Working Capital (Per Month)
( i ) Staff and Labour (per month)

Designation	Nos.	Salary (Rs.)	Total (Rs.)
Production-cum-Factory Manager	1	20000	20000
Administrative officer- cum-Accountant	1	15000	15000
Marketing executive	1	18000	18000
Production supervisor	1	12000	12000
Foreman	2	6000	12000
Furnace operator	1	5000	5000
Edge working operator	3	3500	10500
Glass cutter	1	3500	3500
Packing-cum-despatch clerk	1	3500	3500
Steno-typist	1	4500	4500
Clerk	1	4500	4500
Security staff	2	3000	6000
Fitters	3	4500	13500
Peon	1	3000	3000
Factory staff
Skilled labour	2	4800	9600
Unskilled labour	2	3500	7000
Total			147600
+ Perquisites @ 22% on salary			32472
Total			180072

(ii) Raw Materials (per month)
(75% Production in the year)

Sheet glass 32,000 sq.ft. @ Rs.26 per sq.ft.	832000
Packing materials LS	52000
Total	884000

(iii) Other Contingent Expenses (per month)	(Rs.)
Postage and stationery	2000
Telephone expenses	3000
Consumable stores	5000
Repairs and maintenance	10000
Transportation charges	15000
Advertisement and publicity	10000
Insurance	2200
Sales expenses	15000
Misc. expenses	3000
Total	65200

(iv) Utilities (per month)	Rs.
Power 50,000 kWH units @ Rs.5.00 per unit cost	250000
Water LS	10000
Total	260000

(v) Total Recurring Expenditure (per month) (i + ii + iii + iv)	1389272
(iv) Total Working Capital for 2 Months	2778544

C. Total Capital Investment

Land and building	8210000
Machinery and Equipment	6803500
Working capital	2778544
Total	17792044

Machinery Utilization

75% utilisation of machinery and manpower has been taken into consideration.

Financial Analysis

(1) Cost of Production (per year)	(Rs.)
Total recurring cost	16671264
Depreciation on building @ 5%	410500
Depreciation on machinery and equipment @ 10%	470350
Depreciation on Furnace @ 20%	400000
Interest on investment @13%	2312966
Depreciation on other equipments and furniture @ 25%	25000
Total	20290080

2) Turnover

For calculation purposes, it is assumed that the unit shall manufacture flat toughened glass of size 5 to 6 mm. the average sale prices of which is taken at Rs.70 per sq.ft. total 3,84,000 sq.ft. (per year), after allowing rejection of 24,000 sq.ft., the saleable quantity will be 3,60,000 sq.ft., @ Rs.60/- per sq.ft.

Value of Turnover in Rs

23400000

(3) Net Profit (per year)	=	Turn over – Cost of production
	=	3109920

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

	=	13.29

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

	=	17.48

(6) Break-even Point

Fixed cost	(Rs.)
Depreciation on Furnace @ 20%	400000
Depreciation on office equipment and furniture	25000
Depreciation on machinery and equipment	470350
Depreciation on building	410500
Interest on total investment	2312966
Insurance	26400
40% of salaries and wages	864345.6
40% of other contingent expenses + Utilities (excluding insurance)	1550400
Total	6059962

B.E.P	=	FC x 100 ---------------------
		FC + NP (per year)

	=	66.09

Additional Information

a. Capacity utilisation has been assumed at 75% in the 1st year.

b. The raw materials and sales prices have been taken at the prevailing market and sales prices have been considered ex-factory

Addresses of Machinery Suppliers

1. M/s. Associated Erectors (Calcutta)
14 A, S.N. Banerjee Road,
Kolkata-700 013.

2. M/s. Andrew Yule and Co. Ltd.
Yule House, B. Civil Row,
Kolkata-700 001.

3. M/s. Punam Machine and Tools
10, Ganesh Chandra Avenue,
Kolkata - 700 013.

4. M/s. Eastern Engineering Works
7, Fancy Lane, II Floor,
4 A, Courz in House Street,
Kolkata - 700 001.

5. M/s. Supertuf Industries
3/93, DB Gupta Road,
Paharganj, New Delhi.

Raw Material Suppliers

1. M/s. Shree Vallabha Glass Works
Vallabha Vildyanagar,
Via Anand, Dist. Kaira,
(Gujarat)

2. M/s. Hindusthan Pilkington
Glass Works Ltd.
Assansol, (West Bengal)

3. M/s. Triveni Sheet Glass Works Ltd.
Bhurpur, Allahabad (UP).

4. M/s. Indo Asahi Glass Works Ltd.
Hazaribag, (Bihar)

5. M/s. Haryana Sheet Glass Works Ltd.
20th Mill Stone,
P. S. Rai, Sonepat,
(Haryana)

6. M/s. Saraikela Glass Works Ltd.
Kandra, Singhbum, (Bihar)