|
PU Laminated Split Leather
| Product Code |
: |
N.A. |
| Quality and Standards
|
: |
As per customer's specification
|
| Production Capacity
|
: |
1,80,000 sides of PU
Laminated Split Leather equivalent to approximately 2*1350000
sq.ft. (per annum) |
| Quantity |
: |
Value: Rs. |
| Uploaded on |
: |
April 2007 |
Introduction
development in leather manufacturing field
which has presently a great demand in the market. This leather
has gained wide popularity in the fashion world and is used
for making a wide variety of fancy leather products. Considering
the low market price of the splits from cow and buffalo hides,
its huge availability in the local market and a substantial
market potential, the project on manufacturing the PU laminated
Split leather can be said to have a very bright prospect.
Market Potential
There exists a very good market potential
for the PU laminated Split Leather both in the internal market
as well as in the overseas markets. The use of this leather
in making fashionable leather products is increasing day by
day. There is an enormous export potential in the international
market for this leather specially in the developed countries
like USA, Canada, Great Britain, Germany, Italy, Australia,
Japan and many other countries. Although the exact demand
figure of export for this leather is not available now, there
is a great hope for an expanding market for this kind of leather
throughout the globe. India has got very rich resources in
terms of availability of skilled manpower, advanced technical
know-how and highest raw-material resources i.e. raw-hides
and skins. With this back ground India is now among the top
four global players in the leather trade, according to a recent
FAO survey.
Basis and Presumptions
1. The unit would work on double shift
basis of 16 hours for 25 days in a month and 600 days per
annum.
2. Full capacity utilization is envisaged
to be achieved within a period of one year.
3. Wages and salary is considered on the
basis of prevailing local rates.
4. Rate of interest on investment 12%
5. Margin money 25%
6. Pay-back period of the product: About
3 years.
Implementation Schedule
The implementation schedule is considered
to be about one year. This will be necessary taking into account
the possible time required for obtaining NOC from the State
Pollution Control Board, Provisional Registration, preparation
of Project Report and its appraisal, permanent registration,
taking loan/ finance from the bank, arrangement of land, building,
machinery and equipments and other working infrastructure,
establishing rapport with the trade, industries associations,
trial run operation etc.
Technical Aspects
Process of Manufacture
The splits taken out from the chrome tanned
wet blue leathers (buffalo or cow) are used for making the
PU Laminated Split leather. The process of manufacture of
the PU Laminated Split leathers from the wet blue splits is
given below:
At first, the wet blue split leathers
are shaved in the shaving machine. The thickness is kept at
0.9 to 1.0 mm. Then the weight of the shaved splits are taken.
This weight will be used for measuring the quantity of chemicals
to be added in the subsequent processes.
Acidification: The wet blue splits are
taken into the drum and acidified as follows:
The drum is run for 10-15 minutes.
Re-chroming: The re-chroming is done in
the same bath and the process is run as follows:
| Basic chrome sulphate
|
3% – 40 mins |
| Add: Sodi-bi-carb |
0.5% – 30 mins |
The p H of the bath is adjusted
to 4.0 and then the re-chromed wet blue splits are washed
in running water for 10 min.
Neutralisation: The neutralisation of
the wet blue splits is done as follows:
The drum is run for 40 minutes.
The neutralisation is checked with bromocresol
green and the p H is adjusted at 5.0. The bath is
then washed for 10 mins. And a new float of water is taken
in the drum..
Retanning: This process is followed as
given below:
| Cationic Fat liquor
|
2% |
| The drum is run for
30 mins. |
|
| Add: Wattle extract
|
2% |
| Basyntan DI (Syntan)
|
1% |
| The drum is run for
30 mins. |
|
The retanned splits are washed in running
water for 5 to 10 mins and then fresh water is taken into
the drum.
Fat Liquoring: The fat-liquoring is done
as follows:
| Water |
200% ( 55º – 60ºC)
|
| Sulphited vegetable
oil |
4 % |
| Synthetic Oil |
2% |
| Preservative |
0.25% |
The oil emulsion is added to the drum
which is run for about one hour. The exhaustion of the fat
is checked. Then 0.5% Acetic Acid is added for fixing the
fat after which the drum is run for 30 mins. more.
Add: Preservative - 0.25%
The drum is run for 20 mins.
The materials are then washed for 10 mins.
in running water and then drained out and piled up in the
horse overnight. Next day, the splits are sammed, set and
dried. Then the dried split crusts are conditioned in the
wet saw dust, toggled and staked in the staking machine. The
staked splits are then trimmed off. Then buffing and snuffing
of the splits are done on the flesh side and grain side respectively
followed by dusting-off operation. The splits are now ready
for finishing operation for making PU Laminated Split leather.
Finishing: At first a coat of latex solution
or Polyurethane coat is applied on the surface of the split
on the grain side and dried. A hair-cell print is applied
on this surface by the hydraulic press. Then a polyurethane
(PU) foil is put over the grain side surface of the split
leather and plated by the hydraulic press under controlled
temperature and pressure. The colour of the PU Laminated split
leather varies which is to be selected according to the choice
of the customers. PU laminated Split Leather thus produced
is finished at the edges by trimming the excess PU film. Finally,
the area of the leather is measured and the leathers are packed
for despatch. For the purpose of this Project, an average
area of 15 sq.ft. per side of the split leather has been considered.
Quality Control and Standards
As per customer's Specification.
Production Capacity
| a) |
Quantity: 1,80,000 sides
of PU Laminated Split leathers. One side represents half
of the full cow or buffalo leather, with an average area
of 15 Sq.ft, each side. So, Average total Production =
27,00,000 Sq.ft. (Approx.) (per annum) |
| b) |
Value: Rs. |
Pollution Control
The pollution control is now-a-days one
of the most important environmental issues and this has to
be given utmost attention. This is because, the effluents
coming out of the tanning processes are very toxic and they
are likely to affect the flora and faunae of water, if disposed
off elsewhere or in the river. Hence, for running such tanning
unit, a No Objection Certificate (N.O.C.) has to be obtained
from the Pollution Control Board. Also, suitable measures
have to be taken for pollution control by making arrangement
for treatment of effluents through common effluent treatment
plant.
Energy Conservation
Conservation of energy is an important
area to be looked into with utmost care. Lot of energy is
spent in the tannery in the form of electricity and fuel.
Hence, there exist a lot of scope for conservation of electricity
and fuel which are among the limited resources required for
running an industrial unit. In order to take appropriate measures
towards energy conservation, the following steps need to be
taken:
1) Maintenance department will be properly
geared up to ensure proper maintenance of all the machines
and the electrical system.
2) Common drive system will be made to
run the paddles, drums and other machines.
3) Workers are to be properly trained
and made aware to save the energy.
Financial Aspects
A. Fixed Capital
| (i) Land and Building
Amount |
(Rs.)
|
| Total land area – 1000
sq.mtr.@Rs 5000 sq Mtr |
5000000
|
| 1) Office, stores etc.
150 sq.mtr. @Rs 8000 sq.Mtr |
1200000
|
| 2) Working shed 600
sq.mtr.@ Rs 7000 /Sq Mtr |
4200000
|
| 3) Water System including
bore well & overhead tank |
200000
|
|
Total
|
10600000
|
(ii) Machinery and Equipments
| Sl. No. |
Description |
Ind./Imp. |
Qty. (Nos.) |
Value (Rs.) |
| 1. |
Tanning Drums including
15 HP motor, starter etc. Size: 8'x6'. |
Ind. |
2 |
500000 |
| 2. |
Single width shaving
Machine (300mm Width) 5 HP motor. |
Ind. |
2 |
150000 |
| 3. |
Reversible setting out
machine, Size:5'-o” (1500 mm) with one Gear Box, Panel
Box, Foot switch 5HP. 960 RPM. AC motor, One 15 HP 1440RPM
AC Motor, starter etc. |
Ind. |
1 |
210000 |
| 4. |
Slocomb staking Machine
with 7.5 HP Motor, starter etc. |
Ind. |
2 |
140000 |
| 5. |
Single width Buffing
Machine with 5HP Motor and starter etc. |
Ind. |
2 |
150000 |
| 6. |
One Dusting off M/c.
|
Ind. |
1 |
40000 |
| 7. |
Toggle chamber with
10 plates. |
Ind. |
1 |
160000 |
| 8. |
Measuring Machine |
Ind. |
1 |
260000 |
| 9. |
One generator set |
Ind. |
1 |
300000 |
| 10. |
One spray booth Size:
9'x5' with top Booth cover, 2 nos. Of 18” exhaust fans
and starter |
Ind. |
1 |
60000 |
| 11. |
Hydraulic Press |
Ind. |
1 |
1500000 |
| 12. |
Tools and equipments
|
Ind. |
L.S. |
60000 |
| 13. |
Electrification and
installation @ 10% of the cost of Machinery |
|
|
347000
|
| 14. |
Furniture and fixtures
|
|
|
200000 |
| |
Total cost of Machinery
and equipment |
4077000
|
| |
(iii) Pre-operative
Expenses |
50000
|
| |
Total Fixed Capital
(i+ii+iii) |
14727000
|
B. Working Capital
(i) Personnel
(per month)
| Sl. No. |
Designation |
No. |
Salary (Rs.) |
Total (Rs.) |
| |
Administrative |
| 1. |
Tanner-cum-Manager |
1 |
20000 |
20000
|
| 2. |
Supervisor |
1 |
8000 |
8000
|
| 3. |
Accountant-cum-clerk
|
1 |
7000 |
7000
|
| 4. |
Watchman |
2 |
5000 |
10000
|
| 5. |
Sweeper |
1 |
3000 |
3000
|
| |
Technical |
|
|
0
|
| 6. |
Skilled Worker |
24 |
7000 |
168000
|
| 7. |
Semi-skilled Worker
|
12 |
5000 |
60000
|
| 8. |
Helper |
8 |
3000 |
24000
|
| |
Total
|
300000
|
| |
Perquisites @ 22% |
66000
|
| |
Total
|
366000
|
(ii) Raw Materials (Including Packing
Materials) (per month)
| Sl. No. |
Description |
Qty. |
Rate (Rs.) |
Total
(Rs.) |
| 1 |
Wet Blue splits |
15000 sides of splits
equivalent to 225000 sq.ft. (approx.). |
16 per s.ft. |
3600000
|
| 2. |
Processing Chemicals
|
L.S. |
8 per sq.ft. |
1800000
|
| |
Total
|
5400000
|
| (iii) |
Utilities(per month)
|
Amount (Rs.) |
| a) |
Power |
50,000 |
| |
Total
|
50000
|
| (iv) |
Other Contingent
Expenses (per month) |
Amount (Rs.) |
| a) |
Postage and stationery
|
10000
|
| b) |
Transport charge |
20000
|
| c) |
Telephone |
8000
|
| d) |
Consumable stores |
15000
|
| e) |
Advertisement and publicity
|
10000
|
| f) |
Insurance |
6000
|
| g) |
Selling expenses |
15000
|
| h) |
Miscellaneous expenses
|
20000
|
| |
Total
|
104000
|
| (v) |
Working Capital (per
month) |
(Rs.) |
| i) |
Personnel |
366000
|
| ii) |
Raw-materials |
5400000
|
| iii) |
Utilities |
50000
|
| iv) |
Other contingent expenses
|
104000
|
| |
Total
|
5920000
|
(vi) Working Capital for 3 months
C. Total Capital Investment
| a) |
Fixed Capital |
10600000
|
| b) |
Working capital for
2 months |
17760000
|
| |
Total
|
28360000
|
Machinery Utilisation
The machinery utilisation is anticipated
to be 75% to 80% of the installed capacity. The effort should
be made to maximum utilization of the machinery.
Financial Analysis
| (1) |
Cost of Production
(per annum) |
(Rs.) |
| a) |
Total Recurring expenses
|
71040000
|
| b) |
Depreciation on Building
@ 5% |
530000
|
| c) |
Depreciation and equipment
on Machinery @ 10% |
412700
|
| e) |
Interest on Capital
Investment @ 12% |
3403200
|
| |
Total
|
75385900
|
(2) Turnover (per annum)
| Item |
Qty. Sq.ft. |
Rate (Rs.)/
per sqft |
Value
(Rs.) |
| PU Laminated Split Leather
|
2700000 |
33 |
89100000
|
| (3) Net Profit (per
annum) |
|
|
| |
|
Turnover – cost of production
|
| |
= |
13714100 |
| |
|
|
| (4) Net Profit Ratio
|
|
|
| |
|
Net Profit per annum
x 100 |
| |
= |
———————————— |
| |
|
Turnover |
| |
|
|
| |
|
13714100 x 100 |
| |
= |
———————— |
| |
|
89100000 |
| |
|
|
| |
= |
15.39 |
| |
|
|
| (5) Rate of Return
|
|
|
| |
|
Net profit per annum
x 100 |
| |
= |
———————————— |
| |
|
Investment |
| |
|
|
| |
|
13714100 x 100 |
| |
= |
———————— |
| |
|
28360000 |
| |
|
|
| |
= |
48.36 |
(6) Break-even Point
| (i) |
Fixed Cost (per annum)
|
Amount In (Rs.) |
| a) |
Depreciation on building
|
530000
|
| b) |
Depreciation on Machinery
and Equipments @ 10 % |
387700
|
| c) |
Depreciation on furniture
@ 20 % |
50000
|
| d) |
Interest on Capital
|
3403200
|
| e) |
Insurance |
72000
|
| f) |
40% of salary/wages,
utilities and other contingent expenses (Excluding Insurance)
|
2467200
|
| |
Total
|
6910100
|
| |
(ii) Net Profit (per
annum) |
13714100 |
| B.E.P. |
|
|
| |
|
Fixed Cost x 100 |
| |
= |
————————— |
| |
|
Fixed Cost+Profit |
| |
|
|
| |
|
6910100 x 100 |
| |
= |
——————————— |
| |
|
6910100 + 13714100 |
| |
|
|
| |
= |
33.5% |
Addresses of Machinery and Equipment
Suppliers
1. M/s. Prototype Development and
Training Centre
Sector – B/84,
Guindy Industrial Estate,
Chennai – 600 097.
2. M/s. The Bengal Machinery
Co.(Pvt.) Ltd.
9A, New Tangra Road,
Kolkata – 700 046.
3. M/s. Annapurna Enterprises
F-10/2, HIDC, Shiroli,
Kolhapur – 416 122.
4. M/s. Bharat Udyog,
A-49, MIDC Industrial Area,
Shiroli, Kolhapur.
5. M/s. Atlanta Trading Co.(P) Ltd.
Atur House, Worli Naka,
Mumbai.
6. M/s. Solai Engg. Works
48/42-C, North Usman Road,
T. Nagar, Mehim,
Mumbai – 400 017.
Raw Material Suppliers
1. M/s. Asia Tannery
Jajmau,
Kanpur (UP).
2. M/s. Zaz Tannery
Jajmau,
Kanpur(UP).
3. M/s. T. Abdul Walhid and Company
26, Vepery High Road,
Chennai – 600 013.
4. M/s. Alam Tannery
3, Gulam Jilani Khan Road,
Kolkata – 700 039.
5. M/s. Indofil Chemical Ltd.
Nirlon House,
Dr. Annie Besant Road,
Mumbai-400025.
6. M/s. Leather Chemical and Industries
Ltd.
4-1, New Alipur,
Kolkata.
7. M/s. BASF Chemicals (P) Ltd.
Anwarganj,
Kanpur(UP).
8. M/s. Allied Resin Chemicals Ltd.
134/1, M.G. Road,
Kolkata – 700 011.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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