Introduction

Corrosion is a natural phenomenon. Due to various types of pollution, corroding factors are on the increase. Hence corrosion prevention is of prime importance in day-to-day activities. One of the natural products with versatile utility in prevention of corrosion in CNSL (Cashew Nut Shell Liquid). This oil is available in plenty from cashew industry as a by-product. CNSL is treated and polymerized to give resins which will act as good coating materials. These resins are used in anti-corrosive protective coatings.

The most important use is in painting marine vessels and finishing boats. These paints are used in chemical plants for protecting the machinery from corrosion. It is also used in structural application, where more exposure to heat and sun-light is there.

Market Potential

There is good market potential for these type of primers in the country; more so in the coastal states where finishing boats and vessels are in plenty. As Chemical industry is expanding rapidly, the concept of giving protection to chemical plants is also on the increase. As more and more stress is laid on preventive maintenance, increasing use of anti-corrosive paints is anticipated.

Basis and Presumptions

i. The production capacity is on single shift of 16 hours per day and 25 working days per month basis with 75% capacity utilization.

ii. The cost of Plant and Machinery, Raw-materials, selling price of finished products etc. are the price collected at the time of preparation of project profile and may vary depending upon location, makers, market and other various reasons.

iii. The labour wages has been taken on the basis of the minimum wages Act of the State Government.

iv. Interest rate of 12% on fixed capital and 12% on working capital.

v. Margin money taken @ 25% of project cost.

Implementation Schedule

One year
i. Project report preparation, registration, local application, etc.	-2 months.
ii. Placing of order for machinery and equipments, delivery, erection, etc.	-6 months.
iii. Electrification, procurement of raw-materials, trial production	-3 months.
iv. Commercial production	-1 month.

Technical Aspects

Process of Manufacture

The paint manufacture consists of the following basic procedures:

1. Mixing the pigment with sufficient vehicle (Resin Solution) to make paste which has the correct consistency for grinding.

2. Grinding the paste in a mill until the aggregates are broken down as indicated by the 'fineness of grind' test.

3. Letting down the ground paste with the remainder materials in the formula.

4. Tinting the batch to the required colour.

5. Testing to determine physical properties and performance requirements.

6. Straining, filling and packing.

In some cases, mixing and grinding are done in the same equipment. The term grinding is commonly used but the actual term is dispersion. Actually, grinding means reduction in size of the ultimate particles of pigment which does not occur in the large majority of cases. The purpose of grinding is to break down the aggregates and to disperse the ultimate particles in the vehicle. The work required for dispersion is performed by the mill or dispersing equipment, and it may be facilitated by addition of grinding aids. The degree of dispersion in a batch of paste being ground usually is determined with a hegman grind gauge.

The gauge reading at this location is taken as a measure of the degree of dispersion of the pigment. The dispersion reading for enamel paint should be at least 7 on hegman gauge whereas a flat paint may be in the range of 4 to 6 hegman gauge.

The dispersion force or action is different in the various types of equipment. In some cases, it is chiefly a shearing action in the others, it is attrition of pigment aggregates against one another, and impact or crushing occurs to a limited extent. The most common action is shearing which is a lateral motion such as cutting or tearing.

High molecular weight is necessary for high viscosity and strong back, but large molecules do not wet the particles or penetrate the aggregate as efficiently as small molecules. For this reason volatile solvents appear to wet pigments quite readily. However, a good dispersion in a solvent may flocculate when the vehicle is added in the let down stage, therefore, enough resin is used in a solvent dispersion to coat the pigment particles and prevent flocculation.

Production Capacity (per annum) Standard Anti-Corrosive Paints

1. Capacity - Quantity 200 MTs
2. Value Rs. 2,28,00,000

Financial Aspects

A. Fixed Capital

(i) Land and Building	(Rs.)
Land 500 sq. mts.	1500000
Built-up area: office, store etc.500 sq. ft.	1000000
Factory shed 2000 sq. ft.	2000000
Total	4500000

(ii) Plant and Machinery	(Rs.)
a. Mild steel ball mill-500 Ltrs.cap. with 10 HP motor-1 No.	500000
b. Planetary mixer 200 Ltrs with 5 HP motor	200000
c. Triple roll mill-1 No. 6" × 12"	400000
d. Paint storage tank 1000 ltrs. 6 Nos.	300000
e. Platform weighing balance-1 No.	50000
f. Solvent storage tank with pump	300000
g. M.S.(Mild Steel) Varnish Kettle 200 ltrs.-2 Nos.	50000
h. Laboratory equipments like balance, oven glass apparatus, viscometer, etc.	500000
i. Generator and pollution control devices and water service	800000
Electrification, erection and commissioning	1000000
Total	41000000

B. Working Capital

(i) Staff and Labour (per month)	(Rs.)
a. Chief Chemist/Paint Technologist-1 No.	15,000
b. Skilled workers-8 Nos.	1,20,000
c. Unskilled workers-4 Nos.	12,000
d. Store Clerk-cum-typist-4 No.	16,000
e. Sales representative-1 No.	10,000
f. Peon & watchmen- 4 No.	14,000
	1,87,000
Perks @ 22%	41,140
Total	2,28,140
or say	2,28,000

(ii) Raw Materials (per month)	Kg.	(Rs.)
a. CNSL Resin	5,000	5,00,000
b. M.T.O. (Mineral Turpentine Oil)	3,70 ltrs.	2,80,000
c. Red oxide	2,000	30,000
d. Zinc chromate	400	80,000
e. Bentonite	1000	10,000
f. China clay	1000	8,000
g. Linseed oil	500	30,000
h. Cobalt napthenates	400	10,000
i. Rosin	400	30,000
j. Packaging drums and labels	900	90,000
Total		10,68,000

(iii) Utilities (per month)	(Rs.)
Power	20,000
Water	3,000
Fuel	15,000
Total	38,000

(iv) Other Contingent Expenses (per month)	(Rs.)
a. Postage and Stationery	5,000
b. Telephone	5,000
c. Taxes	10,000
d. Repair and Maintenance	8,000
e. Travelling and Transport	50,000
f. Advertising and publicity	20,000
g. Miscellaneous Expenses	10,000
Total	1,08,000
Total recurring expenses	14,42,000
For three months	43,26,000

C. Total Capital Investment

a. Fixed Capital	86,00,000
b. Working Capital	43,26,000
Total	1,29,26,000

(i) Cost of Production and Profitability	(Rs. in Lakhs)
i. Total Cost of raw materials	1,28,16,000
ii. Staff and labour	27,36,000
iii. Power, water and fuel	4,56,000
iv. Other expenses	12,96,000
v. Interest on fixed capital @ 12% p.a.	15,51,000
vi. Depreciation	5,10,000
Total	1,93,65,000
(ii) Receipt by sale of 200MT of paints @ Rs. 114/ kg.	2,28,00,000
(iii) Gross Profit	Rs. 34,35,000
(iv) % Profit on Total Investment	26.5%
(v) Net Profit Ratio	20.9%

(vi) Break-even Point

(1) Fixed Cost	(Rs.)
Depreciation	5,10,000
Interest	15,51,000
40% Salary and Wages	10,94,000
40% other contingent expenses	17,30,000
Total	48,85,000

=	Fixed Cost × 100 ------------------------------
	F.C. + Profit

=	1,29,26,000×100 ------------------------------
	1,29,26,000 + 34,35,000
=	72.7%

Addresses of Machinery Manufacturer and Suppliers

1. M/s. Sphere Engineers Pvt.Ltd.
Plot No. A-287,
16/2, Wagle Indl. Estate,
Thane, Mumbai-400604.

2. M/s. Sallon Dynamics
4 Krishna Building,
6th Khetwadi Lane,
Mumbai-400004.

3. M/s. Bonazo Enterprises
63, Najafgarh Road,
New Delhi-110015.

4. M/s. Raymer Engg. Corpn.
Crown Bldg., Uranwala Street,
P.O. Box No. 4019, Grant Road,
Mumbai-400021.

5. M/s. Torrance overseas Engineers
Pvt. Ltd.
754, Anna Salai,
Chennai-600002.

6. M/s. Kusum Engg. Co. Ltd.
25, Swallow Lane,
Kolkata-700001.

7. M/s. Dalal Engg. Pvt. Ltd.
36/37, Jolly Maker Chamber-II,
Nariman point,
Mumbai-400021.

8. M/s. Western Mfg. Co.(Bombay) Pvt. Ltd.
Vulcan Insurance Bldg.,
Near Nariman Road,
Mumbai-400001.

9. M/s. The Oriental Machinery
Supplying Agency Limited
25, Rajendra Nath Mukherjee Road,
Kolkata-700001.

10. M/s. The Pioneer Engg. Company
57, Apollo St., Fort,
Mumbai-400001.

11. M/s. The Ken Indl. Products Pvt.Ltd.
7, Convent Road,
Kolkata-700014.

12. M/s. The Terrance and Sons Ltd.
20, Choranghee Road,
Kolkata-700016.

13. M/s. National India Engg. Co. Pvt. Ltd.
Botawalla Bldg.,
Nariman Circle, Fort,
Mumbai-400001.

Addresses and Raw Material Suppliers

1. M/s. Amrutlal Bhura Bhai and Co.
Anand Bhawan,
Prince Street,
Mumbai-400002.

2. M/s. Allied Trading Co.
39, Nagdevi Street,
Mumbai-400003.

3. M/s. Universal Paints Corpn. Pvt. Ltd.
39, Nagadevi St.,
Mumbai-400003.

4. M/s. Gandhi Parekh Investment
Corpn. Private Limited
Allice Bldgs., Dr. D.N. Road, Fort,
Mumbai-400001.

5. M/s. Techno Enterprises Pvt. Ltd.
P-22, Swallow Lane,
Kolkata-700001.

Contact for more information: