|
Flooring Tiles (Granite)
| Product Code |
: |
N.A |
| Quality and Standards
|
: |
IS 3316:1974 Structural
Granite |
| Production Capacity |
: |
Quantity : 75000 Nos.
Value : Rs. 8250000 |
| Uploaded
on |
: |
May
2007 |
Introduction
Granite is the most beautiful and reliable
material for the building industry. It is used as a building
material in the form of tiles and slabs and is a modular element
for flooring, internal and external cladding, steps, sills,
etc., in houses, offices, hotels, restaurants, hospitals,
temples, etc. It is also used in the monuments.
Granite has been scarcely used in the
past on account of high degree of hardness and difficulties
in processing. The development of new and advanced technology
and machinery has made it possible for the granite industry
to reduce its production costs and considerably increase its
production capabilities.
Market Potential
India is the second largest producer of
granite after South Africa. Besides a good domestic demand
due to steady growth in the commercial complexes and other
building industry, there is a good export potential for granite
tiles. India has an established market in Singapore, Taiwan,
Australia, Japan, USA, UK, Italy and Germany. Although there
is an export potential for the product, with the envisaged
scale of operation, it is advisable to concentrate on domestic
market initially before stepping in for an ambitious export
market.
Basis and Presumptions
Efficiency: It is envisaged that the unit
will run for 8 hrs a day and 300 days in a year. 75% efficiency
of manpower and machinery is considered.
Time Period: Full capacity is expected
to be achieved within 6 months of trial production.
Labour Wages: Minimum applicable wages
are considered.
Interest Rate : 13% per annum is taken
into consideration.
Margin Money: One-third of the total capital
investment may be brought in by the promoter (s).
Pay back Period: About 4 years.
Land Cost and Construction Cost:
Land Cost Rs .2000 per sq. metre
Construction Cost Office and Stores: Rs.
5000 per sq. metre
Work Shed: Rs. 5000 per sq. metre
Implementation Schedule
| Sl. No. |
Activity |
Period
(in months) |
| 1. |
Preparation of the project
report Selection of site Provisional registration |
2 |
| 2. |
Availability of finance
Construction of building, Procurement
of machinery and equipment, Availability of electrical
power |
3 |
| 3. |
Erection and commissioning,
Trial runs, Recruitment of manpower |
1 |
| Total Implementation
Period |
6 |
Technical Aspects
Process of Manufacture
Granite blocks of 1 cft and 2 cft in size
are procured from quarry owners. Blocks of various colours
and shades are to be chosen depending on the customers requirements.
Varieties of granite are available in various colours and
shades in Karnataka, Maharashtra, Andhra Pradesh and Rajasthan.
These are Himalayan blue, Ilkal red, Cherry blossom, Blue
rose, S K fantasy, Kanakpura multi colour, Hassan green, etc.
Granite blocks are fed into a fully automatic
circular sawing machine for slicing. The spacing between the
cuts is preset depending on the thickness of tiles to be required.
The depth of the cut is adjusted depending on the hardness
of the granite. The hardness varies depending on the varieties
of granite. Diamond segmented blade is used for cutting or
slicing in which, water is the coolant. Water re-circulation
system is suggested for minimizing water consumption.
The tiles could be of different sizes
viz. 6" × 6", 12" × 12" and
12" × 24". The thickness of the tiles ranges
between 10 mm and 20 mm.
The sliced granite is sent for further
processing in the following sequence:
a) Rough surface grinding
b) Smooth surface grinding
c) Polishing
For the above three processes different
grades of abrasive powders and polishing heads are used. Manual
mode of operation of the machine is suggested for the above
three processes. Polishing heads are replaceable for different
operations on a single machine. Alternatively, three operations
can be done on three different machines for increased production.
After polishing the individual tiles can
be fed into an edge-cutting machine with double blade for
parallel cutting of the two edges. Then, the tiles are positioned
so that the other two parallel edges are also cut.
Double blade edge-cutting machines are
preferred over single blade edge-cutting machine because sizes
are more accurate and 90º is easily maintained between
the adjacent edges. Water is used as coolant.
Edge polishing may be done with abrasive
stones manually or portable machines.
Finished tiles are inspected for accuracy
in size, mirror polish, etc. Tiles with any visual defects
in polishing are avoided.
Quality Control and Standards
The Bureau of Indian Standards has published
the following standard for structural granite: IS 3316:1974
Specification for structural granite (first revision), Reaffirmed
1987.
According to the above specification,
the product should be free from flaws, injurious veins, cavities
and similar imperfections that would impair its structural
integrity and would adversely affect its strength and appearance.
Besides the above attributes, the above
standard also specifies requirements for the following parameters:
Size tolerance: + 2 mm in length and breadth
+ 1 mm in thickness.
Water absorption: Not more than 0.50%.
Compressive strength: Not less than 1000
Kgs/sq. cm.
Specific gravity: Not less than 2.6
Production Capacity (per annum)
| Granite tiles size
|
Quantity (Nos.) |
Price (Rs.) |
Value (Rs.) |
| 6" x 6" |
50000 |
140 |
7000000 |
| 12" x 12" |
20000 |
225 |
4500000 |
| 12" x 24" |
5000 |
625 |
3125000 |
| Total |
75000 |
|
14625000 |
Pollution Control
Storage pits for slurry included
Financial Aspects
A Fixed Capital
(i) Land and
Building
| |
Sq. Metres |
Rate (Rs.) |
Value (Rs.) |
| Land |
1000 |
2000 |
2000000 |
| Built Area Office and
Stores |
100 |
5000 |
500000 |
| Working Shed |
400 |
5000 |
2000000 |
| Construction of pits
for waste slurry storage, etc. |
|
|
100000 |
|
Total
|
4600000 |
(ii) Machinery and Equipments
| Description |
Imp/ Ind. |
Qty. (Nos.) |
Rate (Rs.) |
Value (Rs.) |
| Production
Unit |
| Circular sawing machine
(automatic), max. Cutting depth 375 mm, diamond segmented
circular saw of 1000 mm dia., 25 HP main motor, 1 HP elevating
motor and other accessories |
Ind. |
2 |
700000 |
1400000 |
| Double blade edge cutting
machine (manual), max. work size: 450x450 mm, vertical
movement: 80 mm, diamond segmented blade (200 mm dia.),
2 HP motor and other accessories |
Ind. |
3 |
180000 |
540000 |
| Heavy duty polishing
machine (manual), max. polishing area: 600x1200 mm, vertical
movement: 200 mm, 3 HP motor, polishing heads and other
accessories |
Ind. |
6 |
80000 |
480000
|
| Testing Equipment
|
Nil |
| Pollution
control equipment |
Nil |
| Storage pits
for waste slurry included in construction Energy conservation
equipment |
Nil |
| Sub Total
|
2420000
|
| Electrification
and installation charges At 10% of cost of machines and
equipment. |
242000
|
| Total |
2662000
|
| Cost of diamond
segmented saws, polishing heads, etc. |
450000 |
| Cost of office
equipment, working tables, etc. |
141000 |
|
Total
|
3253000
|
| (iii) Pre-operative Expenses
|
Rs. 240000 |
| (Project report cost,
non-refundable deposits, etc.) |
|
| Total Fixed Capital
(i+ii+iii) |
7853000 |
B. Working Capital (per month)
(i) Personnel (per month)
| Designation |
Nos. |
Salary / (Rs.) |
Total (Rs.) |
| Administration
and Supervisory |
| Manager |
1 |
16000 |
16000 |
| Supervisor |
1 |
9000 |
9000 |
| Salesman |
1 |
9000 |
9000 |
| Accountant |
1 |
6000 |
6000 |
| Clerk |
1 |
5000 |
5000 |
| Watchman |
3 |
3000 |
9000 |
| Attendant |
1 |
3000 |
3000 |
| Technical:
Skilled and Semi or skilled |
| Skilled workers |
8 |
5000 |
40000 |
| Semi-skilled workers
|
5 |
4000 |
20000 |
| Sub Total
|
117000 |
| Perquisites
@ 22% of salaries |
LS |
25740 |
|
Total
|
142740 |
(ii) Raw Materials (per month)
| Particulars |
Imp/ Ind |
Qty. |
Unit |
Rate (Rs.) |
Value (Rs.) |
| Granite rough blocks
|
Ind. |
500 |
Cft. |
1000 |
500000 |
| Packing materials |
Ind. |
LS |
|
|
10000 |
|
Total
|
510000
|
(iii) Utilities (per month)
| Particulars |
Qty. |
Unit |
Rate (Rs.) |
Value (Rs.) |
| Electrical Power |
8000 |
kWh |
5.00 |
40000 |
| Water |
250 |
kL |
20.00 |
5000 |
|
Total
|
45000 |
(iv) Other Contingent Expenses (per month)
| Particulars |
Value (Rs.) |
| Postage and stationery
|
2000 |
| Telephone |
4000 |
| Consumable stores |
30000 |
| Repairs and maintenance
|
15000 |
| Transport charges |
10000 |
| Advertisement and publicity
|
5000 |
| Insurance |
2000 |
| Taxes |
2000 |
| Sales expenses |
10000 |
| Miscellaneous expenses
|
10000 |
|
Total
|
90000 |
| (v) Total Recurring Expenditure
(per month) |
787740 |
| (vi) Total Working Capital
(on 2 months basis) |
1575480 |
C. Total Capital Investment
| Fixed Capital |
7853000 |
| Working Capital |
1575480 |
| Total |
9428480 |
Machinery Utilization
75% utilization has been considered on
machinery and equipment. No bottleneck is expected in the
operations.
Financial Analysis
(1) Cost of Production (per year)
| Description |
Value (Rs.) |
| Total Recurring Cost
|
9452880 |
| Depreciation on Building
at 5% |
230000 |
| Depreciation on Machinery
and Equipment at 10% |
266200 |
| Depreciation on Tools
at 25% |
147750 |
| Depreciation on Office
equipment at 20% |
28200 |
| Interest on total capital
investment at 13% |
1225702.4 |
|
Total
|
11350732.4 |
(2) Sales Turnover (per year)
| Items |
Qty. |
Unit |
Rate (Rs.) |
Value (Rs.) |
| Granite Tiles of size
(6" x 12") |
50000 |
Nos. |
140 |
7000000 |
| Granite Tiles of size
(12" x 12") |
20000 |
Nos. |
225 |
4500000 |
| Granite Tiles of size
(12" x 24") |
5000 |
Nos. |
625 |
3125000 |
|
Total
|
14625000 |
| (3) Net Profit Before
Tax (per year) |
= |
3274267.6 |
| |
|
|
| (4) Net Profit Ratio
(%) |
= |
Net Profit per year x
100
-------------------- |
| |
|
Sales per year |
| |
|
|
| |
= |
3274267.6x100
--------------- |
| |
|
14625000 |
| |
|
|
| |
= |
22.39 |
| |
|
|
| (5) Rate of Return |
= |
Net profit per year x
100
--------------------------- |
| |
|
Total Capital investment
|
| |
|
|
| |
= |
3274267.6x 100
---------------------- |
| |
|
9428480 |
| |
|
|
| |
= |
34.73 |
(6) Break-even Point
(i) Fixed Cost (per year)
| Description |
Value (Rs.) |
| Depreciations |
672150 |
| Interest on total capital
investment |
1225702.4 |
| Insurance |
24000 |
| 40% of salaries and wages
|
685152 |
| 40% of other contingent
expenses (excluding insurance) |
422400 |
|
Total
|
3029404.4 |
| B.E.P |
= |
Fixed Cost per year x
100
----------------------- |
| |
|
Fixed Cost per year +
Net Profit per year |
| |
|
|
| |
= |
3029404.4 x 100
----------------------- |
| |
|
3029404.4 +3274267.6
|
| |
|
|
| |
= |
48.06 |
Additional Information
It is advisable to set up units in the states where granite
quarries are available. For example, Karnataka, Tamil Nadu,
and Andhra Pradesh have good deposits of granite rock. Granite
being a minor mineral, is under the purview of State Governments
and, Govt. policies on granite quarrying and lease vary from
State to State.
The proposed project depends on the quarry
owners for its raw material. Continuous availability of the
desired quantity and quality (viz., colour, shade, etc.,)
is very important. The project is envisaged for supply of
granite tiles to meet the consumption within the country,
local or otherwise. To get export quality finish in the granite
tiles, it is also advisable to install Chamfering machine,
Grooving machine and Calibrating machine.
Addresses of Machinery and Equipment
Suppliers Granite Cutting and Polishing Machinery
1. M/s. M. L. Shah and Co (Machinery)
Pvt. Ltd.
Lotus House, 5th floor, 33 A,
New Marine Lines,
Mumbai-400 020
2. M/s. Rajasthan Udyog
13, Heavy Industrial Area,
Jodhpur-342 003
3. M/s. Hensel (India) Pvt. Ltd.
No. 58, Country Club Road,
Singasandra,
Bangalore 560 068
4. M/s. Jodhpur Machine Tools
Suvidha Complex, Sector E-4,
Shastri Nagar,
Jodhpur-342 003
5. M/s. Rajasthan Industries
Behind Old Power House,
Jodhpur-342 001
6. M/s. Yantra Udyog
65/2, KCG Industrial Estate,
Kamakshipalya,
Bangalore–560 079
7. M/s. Afam Stonemachin
No. 85, Sharada Colony,
3rd Stage, 4th Block,
Basaveshwarnagar,
Bangalore-560 079
8. M/s. M. R. Industries
3, Varalin Industrial Estate,
Chand Lodiya Gots Road, Gota,
Ahmedabad-382481
Diamond Segmented Saws and Polishing
Heads and Abrasives
1. M/s. Rajasthan Tools Pvt. Ltd.
13/A, Heavy Industrial Area,
Jodhpur-342 003
2. M/s. Winter Misra Diamond
Tools Ltd.
79, Jorbagh,
New Delhi-110 003
3. M/s. Neel Enterprises
15-A, Silver House,
Nr. Mahalakhmi Road,
Paldi, Ahmedabad-380 007
4. M/s. Bhukanvala Diamond Tools Pvt. Ltd.
PO Box No. 946, The Peerage,
86, MV Road, (Andheri-Kurla Road),
Andheri (West),
Mumbai-400 093
Raw Material Suppliers
1. M/s. Mysore Minerals Ltd.
39, M. G. Road,
Bangalore–560 001
Other local granite quarry owners.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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