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R.C.C. Spun Pipe

Product Code : 94432
Quality and Standards : IS 458
Uploaded on : July 2007

Introduction

Reinforced cement concrete spun pipes upto 1000 mm dia are exclusively reserved for manufacture in the SSI sector. These pipes are widely used for water drainage, sewerage, culverts and irrigation. RCC pipes are classified as pressure and non pressure pipes viz. NPI, NP2, NP3, P1, P2, P3 for use in specific conditions. These pipes are made from cement, coarse and fine aggregate, sand, mild steel and HT rods and bars.

Market Potential

Public Health Engineering Department, Public Works Departments, Agriculture and Forest Department, National Highways, Environment Engineering Department, Panchayats Municipal Corporations are the bulk consumers of RCC spun pipes. Most of the customers are approved civil contractors who are executing the works of the Government Department and Public Sector Undertakings. Presently government is giving stress on rural irrigation and improving methods of water supply scheme, so the demand for pipes is increasing.

Technical Aspects
Process of Manufacture

The reinforced cage is first prepared on the cage-winding machine by hand process. The cage is then placed inside the pipe mould which is then hoisted up and mounted horizontally on the turn unions. It is rotated by driving shaft with variable speed arrangement, the rotation is kept slow in the beginning and then the speed is increased. The concrete mixture for the RCC spun pipe is prepared in proportion of 1:2:5:2:5 of cement stone, metal and sand respectively. The cement concrete is fed into the moulds during rotation which spreads inside evenly. The time required for completion of this operation depends upon the diameter and class of the pipe. The pipes are kept in the mould for 24 hours. On the following day the pipes are removed from the moulds and submersed in water in the curing tank for about 15-20 days depending upon the class of the pipe. The specimen of the pipes are subject to the following tests viz: (1) Hydrostatic pressure test (2) Three edge bearing test (3) Absorption test.

Quality Control and Standards

The Bureau of Indian Standards has formulated IS 458:1971, for maintaining Quality of the product.

Production Capacity (per year)

Quantity : 20,000 Running meter
Value : Rs. 6460000

Motive Power 20kW.

Pollution Control

The project does not create any noise or water pollution. The air pollution in mixing area need to be contained by providing cyclonic dust collector. Workers may use dust mask.

Energy Conservation

General precautions for saving electricity are required to be followed by the unit by adopting energy conservation techniques.

Financial Aspects
A Fixed Capital

( i ) Land and Building (Rs.)
Land 2 acre Building @ 1200000 per acre 2400000
a) Office, Testing laborator y 35Sq. m. @ Rs4000 140000
b) Production shed 100 Sq. m. @ Rs2000 200000
c) Stores room 30 Sq. m. @ Rs3000 90000
d) Curing tank 40 x 20mtrs. 100000
e) Well, pump set, overhead water tank etc. 150000
Total
3080000

(ii) Machinery and Equipments

Description Qty. Nos. Value (Rs.)
Pipe moulding machine of 2 metre length complete set with 10HP motor 1 300000
Gauge winding machine 2 60000
Concrete mixer 1 80000
Collar winding drum with stand 2 40000
Gantry with pull-push trolley 1 160000
Testing equipments LS 100000
Collar moulds complete with end rings, tie rods, riving ring for pipes 100mm to 600mm dia and 2 metre length pipes 40 280000
Pipe moulds 100mm to 600mm dia 2 metre with accessories 40 440000
Electrification and installation charges LS 80000
Office equipment and furniture LS 75000
Total
1615000

(iii) Total Fixed Investment (Rs.)
Land and building 3080000
Machinery and Equipment 1615000
Pre-operative expenses 80000
Total
4775000

B. Working Capital (Per Month)

(i) Staff and Labour (per month)

Designation Salary Nos. (Rs.)
Manager 15000 1 15000
Supervisor 8000 1 8000
Skilled workers 4500 6 27000
Un-skilled workers 3500 10 35000
Perquisites @22% 18700
Total
103700

(ii) Raw Materials (per month) (Rs.)
Cement 20MT Rs. 4000/MT 80000
Steel 4MT Rs. 28000/MT 112000
Coarse and fine aggregate LS   35000
Mould oil grease and misc. expenses LS   40000
Total
267000

(iii) Utilities (per month) (Rs.)
Electrical power 20kW 12000
Water LS 3000
Total
15000

(iv) Other Contingent Expenses (per month) (Rs.)
Postage and Stationery 2000
Telephone 3000
Repair and Maintenance 5000
Travelling expenses 3000
Transport charges 10000
Miscellaneous expenses 2000
Insurance 15000
Total
40000

(v) Total Recurring Expenditure (per month) (Rs.)
Staff and labour 103700
Raw Material 267000
Utilities 15000
Other contingent expenses 40000
Total
425700

(vi) Total Working Capital for 2 months 851400

C. Total Capital Investment

Fixed capital 4695000
Working capital 851400
Total 5546400

Machinery Utilization

Sufficient and timely availability of Grey cement will ensure optimum utilization of the installed capacity. The pipes are kept immersed in water for curing purpose in such a way that one is not put on the other. Sufficient moulds are required to maintain regular production otherwise non-availability of required pipe moulds or collar moulds will be a bottleneck in the optimum capacity utilization.

Financial Analysis

(1) Cost of Production (per annum) (Rs.)
Recurring Expenditure 5108400
Depreciation on Building @ 5% 42570
Depreciation on Machinery and Equipment @ 10% 74000
Depreciation on moulds @15% 108000
Depreciation on furniture @ 20% 15000
Interest on total investment @ 13% 721032
Total
6069002

(2) Turnover

Items Qty Rate Value (Rs.)
RCC spun pipes 2 meter length 20000 340/ per pipe 6800000
  (– 5% rejection)   340000
Total
6460000

(3) Net Profit = Rs. 6460000– 6069002
  = 390998
     
(4) Net Profit Ratio Over Turnover = Net profit x 100
--------------------
    Turnover
     
  = 390998 x 100
---------------
    6460000
     
  = 6.05%
     
(5) Rate of Return on Total Investment = Net profit x 100
---------------------------
    Total Investment
     
  = 390998 x 100
----------------------
    5546400
     
  = 7.05%

(6) Break-even Point

Fixed Cost (Rs.)
Total Depreciation 239570
Interest on total investment 721032
40% of salaries 497760
40% of other Contingent expenses 120000
Insurance 180000
Total
1758362

B.E.P = Fixed cost x 100
---------------------
    Fixed cost + Profit
     
  = 1758362x 100
-----------------------
    1758362+ 390998
     
  = 81.81%

Addresses of Machinery and Equipment Suppliers

1. M/s. Prakash Fabricators
1034 E, Rajaram Road,
Kolhapur (Maharashtra)

2. M/s. A. P. L. Industries
415, Dave Industrial Estate,
Bhakti Nagar Station Road,
Rajkot – 2 (Gujarat)

3. M/s. Buildtech Engineering Co.
Shree Ashadweep Complex,
16-Civil Lines,
Roorkee – 247 667,
(Uttar Pradesh)

4. M/s. Karthik Industries
36, J.C. Road,
Bangalore-560 002

5. M/s. Susanji Udyog Pvt. Ltd.
C-47, Industrial Estate,
Sanathnagar,
Hyderabad – 500 018

6. M/s. Apco Concrete Blocks and Allied Product
7th Mile, Kanakpura Road,
Doddasandra Post,
Bangalore – 560 062

7. M/s. Ashok Engineering Works
81, Ajit Industrial Estate Rakhial,
Ahmedabad – 380 023

8. M/s. Hydro Engineering Works
K1/116, CIDC,
Mori, (Gujarat)

Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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