|
Fire Clay Bricks and Blocks
| Product Code |
: |
29105, 529107, 29111
and 29112 |
| Quality and Standards
|
: |
N.A. |
| Production Capacity
|
: |
Quantity: 550000 Nos.
(per annum)
Value : Rs. (per annum) |
| Uploaded
on |
: |
May
2007 |
Introduction
Fire clay refractories are commonest of
all refractories. Fire clay refractories containing less than
40% alumina are classified into: (1) Medium heat duty, and
(2) High heat duty fire clay refractories with alumina content
of over 30% but below 40%. Fireclay refractories are made
into bricks and blocks of various standard sizes and shapes
and also as per specific requirement of user industries.
Market Potential
Fire clay refractory products are used
by almost every industry, which has heat processing in the
production process Iron and steel, cement, petrochemicals,
sugar, non-ferrous metal, glass and ceramic industries are
some of the user industries. Iron and Steel industries account
for 75% of the consumption of refractories. Thus, the demand
for refractories is dependent on the growth of iron and steel
industries in the country.
Basis and Presumptions
Efficiency: 75% efficiency of manpower
and machinery is considered. It is envisaged that the kiln
will run its complete cycle uninterrupted, pressing operations
for 3 shifts a day and other operations on a single shift
of 8 hours and for 300 days in a year.
Time Period: Full capacity utilisation
is expected to be achieved within one year from the commencement
of production.
Labour Wages: The minimum applicable wages
are taken into account.
Interest Rate: 13% per annum on total
investment is taken into account.
Margin Money: 25% of the total investment
may be brought in by the promoters.
Pay Back Period: About 3½ years.
Land Cost and Construction Cost:
a) Land Cost: Rs. 2000 per sq.mtr.
b) Construction Cost: Office and stores:
Rs 5000 per sq.mtr and Working shed: Rs. 5000 per sq.mtr.
Implementation Schedule
| Sl. No. |
Activity |
Period
(in months) |
| 1. |
Selection of site Provisional
registration from DIC |
2 |
| 2. |
Availability of finance
Construction of building Procurement of Machinery and
Equipment Availability of Electrical Power
Erections and Commissioning |
4 |
| 3. |
Recruitment of manpower
Trial runs and commencement commercial production |
2 |
| Total implementation
period |
8 |
Technical Aspects
Process of Manufacture
Raw Materials: Fire clays of both plastic
and non-plastic varieties, refractory grog (broken fire bricks)
and other high alumina minerals like kyanite, sillimanite
and bauxite are the raw materials for making fire clay bricks
and blocks.
Processing: Fire clays, plastic clays,
non plastic materials like grog and other high alumina materials
are procured in powdered form. Non plastic materials are screened
in vibratory screen into various particle sizes, viz., coarse,
medium, and fine varieties. The finely ground fire clays and
non-plastic materials of various particle sizes are mixed
in suitable proportions to form a batch. The batch is added
into the Muller mixer. The addition of water is varied to
form consistent mixture either for dry or semi dry pressing
in the case of standard size fire clay bricks or for pneumatic
ramming in the case of fire clay blocks and special shapes.
Drying: While dry pressed fire clay bricks
are ready for stacking in the kiln for firing with little
or no drying time, fire clay blocks and special shapes moulded
by pneumatic ramming and hand moulding are loaded into the
kiln only after being allowed for sufficient drying.
Firing: Likewise any other refractories,
pre-determined timetemperature cycle is followed for firing
of fire clay bricks and blocks 1350ºC–1400ºC being
the optimum firing temperature.
Quality Control and Standards
| IS 1526 |
Sizes and shapes for
fire clay bricks (230 mm series) |
| IS 5459 |
Sizes and shapes for
fire clay blocks (300 mm and higher series) |
| IS 6 |
Moderate heat duty fire
clay refractories, Group-A |
| IS 8 |
High heat duty fire
clay refractories |
| IS 4041 |
Glossary of terms relating
to refractory materials. |
Production Capacity (per annum)
| Quantity |
: Fireclay Bricks and
Blocks: 550000 Nos. |
| Value |
24300000 |
Pollution Control
Cyclonic dust collectors, exhaust and
combustion control are required to be installed with the machineries.
Energy Conservation
Provided in the estimate for oil fired kiln. It is envisaged
that appropriate furnace insulation brick/ceramic fibre curing
and fuel efficient combustion system will be incorporated
in the kiln.
Financial Aspects
A Fixed Capital
(i) Land and
Building
| Particulars |
Sq. Metres |
Rate (Rs.) |
Value (Rs.) |
| Land |
2500 |
2000 |
5000000 |
| Built-up Area Office
and Stores |
100 |
5000 |
500000 |
| Workshed |
600 |
5000 |
3000000 |
|
Total
|
8500000 |
(ii) Machinery and Equipments
| Description |
Imp/ Ind. |
Qty. (Nos.) |
Rate (Rs.) |
Value (Rs.) |
| a) Production
Unit |
| Vibrating screen with
3 HP motor and other accessories |
Ind. |
1 |
33000 |
33000 |
| Double shaft U-Mixer
(capacity: 2 tons per shift) with 10 HP motor and other
accessories |
Ind. |
1 |
90000 |
90000 |
Muller mixer (pan size
6'dia) with 10 HP motor and
other accessories |
Ind. |
1 |
105000 |
105000 |
| Frictional screw press
(150 tonnes) with 20 HP motor and other accessories |
Ind. |
1 |
700000 |
700000 |
| Oil fired kiln (45-50
cubic meters) complete with chimney, oil storage tank,
compressed air and oil supply and pre-heating system and
4-6 burners |
Ind. |
1 |
1300000 |
1300000 |
| Pneumatic rammers |
Ind. |
4 |
25000 |
100000 |
|
Total
|
2328000
|
| b) Testing
Equipment |
| CCS testing machine
|
Ind. |
1 |
45000 |
45000 |
| RUL Machine |
|
|
200000 |
200000 |
| Muffle furnace |
Ind. |
1 |
220000 |
220000 |
| Drying oven |
Ind. |
1 |
50000 |
50000 |
| Shaking equipment Sieve
|
Ind. |
1 |
30000 |
30000 |
| Misc. lab. Items |
Ind. |
LS |
30000 |
30000 |
|
Total
|
575000
|
| Electrification
and installation charges @ 10% of cost of machinery and
equipment |
290300
|
| Total cost
of machinery and equipment |
3193300
|
| Cost of
moulds, tools and other fixtures |
200000 |
| Cost of
office equipment/working tables etc. |
200000 |
| (iii) Pre-operative
Expenses |
60000 |
|
Total fixed capital
|
3653300
|
B. Working Capital (per month)
(i) Personnel (per month)
| Designation |
Nos. |
Salary / (Rs.) |
Total (Rs.) |
| Administration
and Supervisory |
| Manager |
1 |
10000 |
10000 |
| Supervisor |
2 |
7000 |
14000 |
| Salesman |
1 |
8000 |
8000 |
| Clerk |
2 |
5000 |
10000 |
| Watchman |
2 |
3000 |
6000 |
| Technical:
Skilled and Semi or Unskilled |
| Skilled workers |
10 |
5000 |
50000 |
| Unskilled workers |
15 |
4000 |
60000 |
| Technician (Mechanical)
|
1 |
6000 |
6000 |
| Total Salaries
|
164000 |
| Perquisites
@ 22% of salaries |
36080 |
|
Total
|
200080 |
(ii) Raw Materials
| Particulars |
Imp/ Ind |
Qty |
Rate (Rs.) |
Value (Rs.) |
| Fire clays |
Ind. |
150 T |
1500/ton |
225000
|
| High alumina grog |
" |
60 T |
2000/ton |
120000
|
| Kyanite/ sillimanite
|
" |
40 T |
8000/ton |
320000 |
|
Total
|
665000
|
| (iii) Utilities (per
month) |
(Rs.) |
| Furnace oil or LDO:
20 kL @ Rs. 35000 per kL |
700000 |
| Power: 2300 kWH @ Rs.
5.00 per kWH |
11500 |
| Water: 200 KL @ Rs.
25.00 per kL |
5000 |
|
Total
|
716500 |
(iv) Other Contingent Expenses (per month)
| Particulars |
Value (Rs.) |
| Postage, stationery,
telephone, taxes |
7000 |
| Consumables, repairs
and maintenance |
10000 |
| Transport charges |
10000 |
| Advertisement and Publicity
and sales expenses |
5000 |
| Misc. expenditure |
5000 |
| Insurance |
2000 |
| Total cost of Contingent
expenses |
39000 |
| Total Recurring Expenditure
per month |
1620580 |
| (v) Total Working
Capital (on 2 months basis) |
3241160 |
C. Total Capital Investment
| Fixed Capital |
11693300 |
| Working Capital |
3241160 |
| Total |
14934460 |
Machinery Utilization
Machinery utilization of 75 percent has
been considered in the project.
Financial Analysis
(1) Cost of Production (per
year)
| Description |
Value (Rs.) |
| Total recurring cost
|
19446960 |
| Depreciation on building
@ 5% |
425000 |
| Depreciation on kiln
@ 20% |
260000 |
| Depreciation on moulds
and tools @ 25% |
50000 |
| Depreciation on Machinery
and Equipment @ 10% |
102800 |
| Depreciation on testing
equipment and office equipment at 20% |
155000 |
| interest on capital
investment at 13% |
1941479.8 |
|
Total
|
22381239.8 |
(2) Turnover (per year)
| Items |
Qty |
Rate (Rs.) |
Value (Rs.) |
| Medium Heat Duty Fireclay
Refractories |
1200 tons |
|
|
| Fireclay Bricks |
150000 Nos. |
30 |
4500000 |
| Fireclay Blocks |
100000 Nos. |
60 |
6000000 |
| High Heat Duty Fireclay
Refractories |
1600 tons |
|
|
| Fireclay Bricks |
200000 Nos. |
35 |
7000000 |
| Fireclay Blocks |
100000 Nos. |
68 |
6800000 |
|
Total
|
24300000 |
| (3) Net Profit (per
year) |
= |
Rs. 24300000 – 22381239.8
|
| |
= |
1918760.2 |
| |
|
|
| (4) Net Profit Ratio
|
= |
Net profit per year
x 100
-------------------- |
| |
|
Sales Turnover per year
|
| |
|
|
| |
= |
1918760.2x 100
--------------- |
| |
|
24300000 |
| |
|
|
| |
= |
7.9 |
| |
|
|
| (5) Rate of Return
|
= |
Net profit per year
x 100
--------------------------- |
| |
|
Total Capital investment
|
| |
|
|
| |
= |
1918760.2× 100
---------------------- |
| |
|
14934460 |
| |
|
|
| |
= |
12.85 |
(6) Break-even Point (% of Total Production
Envisaged)
(i) Fixed Cost (per year)
| Description |
Value (Rs.) |
| Total Depreciations
|
992800 |
| Interest on total investment
|
1941479.8 |
| Insurance |
24000 |
| 40% of salaries and
wages |
960384 |
| 40% of other contingent
expenses (excluding insurance) |
177600 |
|
Total
|
4096263.8 |
| (ii) Net profit (per
year) |
1918760.2 |
| B.E.P |
= |
Fixed Cost × 100
----------------------- |
| |
|
Fixed Cost + Net Profit
|
| |
|
|
| |
= |
4096263.8 x 100
----------------------- |
| |
|
4096263.8 +1918760.2
|
| |
|
|
| |
= |
4096263.8 x 100
------------------------- |
| |
|
6015024 |
| |
|
|
| |
= |
68.1 |
Addresses of
Machinery and Equipment Suppliers
1. M/s. Amic Industries (P) Ltd.
10, BT Road,
Kolkata-700 036.
2. M/s. Hindustan Engineering Co.
1 and 3/7, Gopalal Tagore Road,
Kolkata-700 035.
3. M/s. Keshab Machinery (Pvt.) Ltd.
Bose Park, Sukchar,
24 Parganas, (West Bengal)
4. M/s. Simplicity Engineers (Pvt.) Ltd.
LB-99, Mayapuri,
New Delhi-110 064.
5. M/s. Wesman Thermal Engg. Process Pvt. Ltd.
269, 18th Main Road,
RMV Extension,
Bangalore-560 080.
6. M/s. Cerakiln Consultants
No. 1, 9th Main, 30th Cross,
BSK II Stage,
Bangalore-560 050.
Raw Material Suppliers
1. M/s. Mysore Minerals Ltd.
39, M G Road,
Bangalore-560 001.
2. M/s. Maruthi Enterprises
LF 13/9, 4th Main,
BTM Layout, II Stage,
Bangalore-560 076.
3. M/s. Industrial Minerals and Refractors
No. 17, Nissen House,
2nd Cross Road, Austin Town,
Bangalore-560 047.
4. M/s. Mineral Processing Industry
Plot No. 180, III Phase, 11th Main,
Peanya Indl. Area,
Bangalore-562 140.
5. M/s. Southern Enterprises
C-265, Peanya Indl. Estate,
I Stage, Bangalore-560 058.
Contact for more information:
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