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Product Code	:	94342
Quality and Standards	:	IS 7402 : 1974, 1975 IS 155011 : 1968 IS 3953 : 1966 IS 3990 : 1967 IS 454 : 1971
Uploaded on	:	May 2007

Introduction

Chemical Porcelain is a white vetrified dense translucent or glazed body, made of china clay, quartz, felspar, talc, alumina and additives in different shapes of thin walled items such as flat tipped basins, beakers, round rectangular capsules, combustion boats, crucibles, funnels dental dissolving cups, parting disks and discs, pipette vest spotting and dessicator plates, pipes, tubes etc, used in the laboratories of educational institutions, scientific development and industrial research, chemical, fertilizer, petro-chemical establishments etc. Due to their inherent properties like resistance to all reagents except hydrofluoric acid, resistance to thermal shock with low coefficient of expansion, good thermal conductivity and mechanical strength they have wide range of uses.

Market Potential

The demand of chemical porcelain items is ever increasing in view of extensive research and development besides growing industrial activities in the field of chemical, fertilizers and petrochemicals throughout the country. Therefore, there is wide scope for setting up new units.

Basis and Presumptions

Efficiency and working hrs. considered for full capacity utilization	75% efficiency 8hrs. working per day for 300 days a year
Time required for achieving full envisaged capacity utilization	3 months from the commencement of commercial production
Labour wages	Skilled workers 3, 000 Semi-skilled/ unskilled 2,400
Interest rate	13%
Margin Money	25%
Pay back period of the project	5 years
Land rate	Rs. 2000 per sq. mt.
Construction rate	Rs. 5000 per sq. mt.

Implementation Schedule

Sl.No.	Activity	Period (in months)
1.	Time required for preparation of project report	1
2.	Selection of site	½
3.	Registration of SSI	½
4.	Availability of finance	1½
5.	Construction of building	5
6.	Machinery procurement and erection	3
7.	Raw materials procurement	1
8.	Recruitment of labour	1
9.	Trial runs	10

If C.P.M. chart is drawn of the above activities, the total time taken would be about 8 months to implement the project as many activities may be completed simultaneously.

Technical Aspects
Process of Manufacture

The hard mineral powders like Quartz, Felspar etc. are ground to 200 mesh fineness and mixed with China clay, talc etc. in suitable proportions in blungers with requisite quantity of water. The slurry is passed through vibrating screen consisting of magnetic separator and stored in agitator. The slurry is then passed to filter press by diaphragm pump where it is dewatered and the body is formed into cakes. The cakes are passed through de-airing pugmill for thorough pugging and extrusion into dense homogenous plastic mass free from air bubbles. The body is then shaped into required products by pressing, casting depending upon the sizes, shapes and properties of the end product. The shaped articles are dried and biscuited at about 1000ºC. After inspection the biscuited ware are suitably glazed for firing at temperature ranging from 1280ºC to 1350ºC. After unloading from the kiln, these are sorted out, tested and packed for marketing.

Quality Control and Standards

The Bureau of Indian Standards has formulated and published the following specifications on various chemical porcelain for guidance and maintenance of the quality of the product:

IS 5009:1969	Buchner funnels
IS 7402 (Part 1):1974	Filter container
IS 7402 (Part 2):1975	Filter candles
IS 5011:1968	Gooch Crucibles
IS 3953:1966	High temperature Ceramic combustion boats
IS 3990:1967	High temperature Ceramic combustion tubes
IS 454:1971	Perforated plates for desicators
IS 2837 (Part 1):1975	Crucibles
IS 2837 (Part 2):1977	Basins
IS 2839:1979	Methods of tests and quality.

Production Capacity
Production target (per annum)

Quantity	: 1200MT
Value	: Rs.

Motive Power

85HP.

Pollution Control and Energy Conservation

There are no toxic effluents discharged through the waste water. However, to control dust pollution at the place of dry grinding of raw materials and mixing, it is recommended to provide cyclonic dust collector, with connecting chutes and coverage. The oil fired shuttle kiln has to be provided with high stack and modern control systems for attaining high efficiency and low discharge of toxic effluents through the kiln.

Financial Aspects
A Fixed Capital

(i) Land and Building	(Rs.)
a) Land 2500 sq. mtrs. @ Rs. 2000 sq. mts	5000000
b) Building
Working shed 600 sq. mtrs. @ Rs. 5 000 sq. mtrs. (ACC)	3000000
Store, office laboratory (RCC) 200 sq. mtrs @ 7000 sq. mtr.	1400000
Total	9400000

(ii) Machinery and Equipments

Description	Nos.	Rate	Value (Rs.)
Ball mill 6'x 4 1/2' with porcelain lining, 10HP electric motor starter etc.	2	130000	260000
Ball mill 4'x 4 1/2' with porcelain lining 10HP electric motor starter etc.	2	90000	180000
Blunger with 5HP electric motor starter and accessories	2	10500	21000
Agitator size 5'L x 5' W x 5'D complete with 3 HP motor starter and accessories	2	78000	156000
Filterpress, chamber dia 300mm with 50 plates	1	250000	250000
Diaphragm pump 6" strokes 2" suction and 1 1/2 delivery with 5HP motor	1	90000	90000
Vibrating screen 2' x 1.5 size with 1HP motor starter etc.	2	25000	30000
Hydraulic press with accumulator, pipefitting, pressure gauge and accessory etc.	1	400000	400000
Toggle press Hand operated	7	50000	350000
Disintegrator, 18" size with 7.5HP motor, starter etc.	1	150000	150000
Total			1887000
Electrification and Installation charges @ 10%			188700
Total			2075700
Tools, dies and moulds etc.	LS		180000
Pollution control equipment	LS		150000
Office Furniture			200000
Laboratory testing equipment			200000
Total			2805700
Tunnel Kiln, oil fired, fiberlined (HTZ 128 modules) capacity 3.5 MT/day with equipments and storage tank			1600000
Total cost of machinery and equipments			4405700
(iii) Pre-operative Expenses			120000

Total Fixed Capital	(Rs.)
a) Land and building	9400000
b) Plant and machinery	4405700
c) Pre-operative expenses	120000
Total	13925700

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

Designation	Nos.	Salary / month	Total (Rs.)
Manager/Ceramist	1	17000	17000
Supervisors	2	8000	16000
Accountant	1	7000	7000
Clerk-cum-typist	1	4000	4000
Skilled workers	10	3500	35000
Semi-skilled/unskilled workers	20	3000	60000
Peons	2	3000	6000
Watchman	2	3000	6000
Perquisite @ 22%			33220
Total			184220

i) Raw Material (per month)

	Qty.	Rate	Value (Rs.)
Ball Clay	20MT	1800	36000
China Clay	50MT	2000	100000
Felspar	20MT	1500	30000
Quartz	20MT	1500	30000
Zinc/Zirconium chemical	3MT	60000	180000
Packing materials	LS	70000	70000
Total			446000

(iii) Utilities (per month)		(Rs.)
Power	70HP	63000
L.D.O./ Kerosenes	21,000 ltrs Rs. 35 /ltr.	735000
Total		798000

(iv) Other Contingent Expenses (per month)	(Rs.)
Postage and Stationery	2000
Telephone	4000
Repairs and Maintenance	10000
Transportation charge	10000
Other overhead exp.	5000
Insurance	2500
Total	33500

(v) Total Working Capital (per month)	(Rs.)
Staff and labour	184220
Raw Materials	446000
Utilities	798000
Other Contingent expenses	33500
Total	1461720
Working Capital (for 2 months)	2923440

C. Total Capital Investment

Fixed capital	18331400
Working capital	2923440
Total	21254840

Financial Analysis

(1) Cost of Production (per year)	(Rs.)
Total recurring cost	17540640
Depreciation on building @ 5%	470000
Depreciation on machinery and equipment @ 10%	188700
Depreciation on Kiln @ 20%	320000
Depreciation on office equipment @ 25%	50000
Depreciation tools, dies and moulds @ 20%	36000
Interest on total investment @ 13%	2763129
Total	21368469

(2) Turnover (per year)

Item	(Rs.)
Chemical Porcelain ware 1200MT @ Rs. 20000 / MT	24000000

(3) Profitability	=	Sales – cost of production
	=	21368469-24000000
	=	2631531

(4) Profit on Sales	=	2631531x100 --------------------
		24000000

	=	10.96

(5) Rate of Return	=	2631531 x 100 ------------------
		21254840

	=	12.38

(6) Break-even Point

Fixed Cost	(Rs.)
Total Depreciation	1064700
Total Interest	2763129
40% of salary	884256
40% of other Contingent expenses	148800
Insurance	30000
Total	4890885

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

	=	4890885 x100 -----------------------
		4890885 + 2631531

	=	65.02

Addresses of Machinery Suppliers

1. M/s. Lokmanya Eng. Works
26/Bharatkhand Cotton Mill
Compound, Narod Road,
Ahmedabad.

2. M/s. Jivanlal Shiv Panchal
Opp. Old Civil Hospital,
Gheekanta Road, Ahmedabad

3. M/s. Modern Engg. and Fabrication Works
Behind Kubeshwar Mahadev,
Saijpur (Ambavadi),
Naroda Road, Ahmedabad

4. M/s. Sharma Kiln Technology
Kothawala Flat, Harekrishna
Complex, Near Paldi,
Ahmedabad - 380007

Raw Material Suppliers

1. M/s. Gujarat Minerals
Opp. S. T. Stand, Vejalpur - 363
721, Tal. Kalol,
Dist. Panchmahal (Gujarat)

2. M/s. Ashok Minerals and Grinding Ind.
F-237-238, MIA, Madri, Udaipur,
(Rajasthan)

3. M/s. Sompura Mines and Mineral Suppliers
Ravishankar Pyrnashankar
Road, Thangadh, Bikaner,
(Rajasthan.)