|
M.S. and High Tensile Nuts and Bolts
| Product Code |
: |
343201011 |
| Quality and Standards
|
: |
IS 1363:1992
IS 1367:1994
IS 2389:1968
IS 4206:1987 |
| Production Capacity |
: |
Qty. : 720 M.T. (Per
annum)
Value : Rs. |
| Uploaded on |
: |
April 2007 |
Introduction
An industrial fastener comprises a very
wide range of items like nuts and bolts, washers, studs, nails
etc. Nuts and bolts consist a major link in the family of
industrial fasteners and are used by every industry. Bolt
is a piece of metal rod, whose one end is upsettled and other
end is threaded. Nut is the item which rolls on these threads.
Nut and bolts are available in various shapes, designs and
sizes.
Nuts and bolts are used for fastening purpose in industries
where the replacement of pieces and the parts is necessary.
There are many industries producing these nuts and bolts of
various sizes, but the demand too is increasing as well as
the raw material for the products is easily and indigenously
available. The main raw material is mild steel wire coil/rod
of required diameter. The composition of materials controls
the quality of the bolts and nuts. The recommended composition
for nuts and bolts raw material is given as under:
| Carbon |
0.22 to 0.23% |
| Phosphorus |
0.40% |
| Manganese |
0.39 to 0.60% |
| Sulphur |
0.50% |
Nuts and bolts are classified by two ways:
i) Their uses, ii) Shape of head.
In terms of use, nuts and bolts are of several types:
Larger dia bolts, machine bolts, stand bolts, joint bolts,
foundation bolts and nuts etc. in terms of shape, bolt and
nuts are classified by head shape like hexagonal head, square
head, round head, pan head, truss head etc.
Market Potential
The demand of nuts and bolts is influenced
by the following factors:
a) Transportation industries, Railways, aircraft, wagon, bicycles,
automobile, body builders, etc.
b) Electrical industries like manufacturing of transformer,
electric motors, fans etc.
c) Building activities such as construction of bridges, fabrication
of various steel structure etc.
d) Other heavy and light industries, steel and wooden furnitures,
machine tools, agricultural machines and agricultural implements
etc.
As various type of MS and HT nuts and
bolts are used in above sectors, the market demand is directly
proportionate to the development of these industrial segments.
Basis and Presumptions
| 1. Capacity Utilisation
|
75% on single Double
Shift basis |
| 2. Time period of 1 year
|
300 days |
| 3. Labour wages |
Estimated on the minimum
wages |
| 4. Rate of interest |
12% |
| 5. Margin money |
25% varying from state
to state |
| 6. Operation period of
project |
10 Years |
| 7. Land & Building
|
Own |
| 8. Cost of machinery
and equipment is approximate to that prevailing in the
market. |
Implementation Schedule
| Sl.No. |
Activity |
Period in Weeks |
| 1. |
Selection of site |
2 |
| 2. |
Preparation of project
report |
4 |
| 3. |
Provisional Registration
|
1 |
| 4. |
Financial arrangement
|
8 |
| 5. |
Procurement of machinery
|
8 |
| 6. |
Installation, electrification
and commissioning of machinery |
6 |
| 7. |
Selection and placement
of staff |
2 |
| 8. |
Procurement of raw materials,
tools etc. |
2 |
|
Total
|
33 weeks |
Technical Aspects
Process of Manufacture
The raw material used for manufacture
of bolt is M.S. Rounds. As some of the rounds available are
rusty and not perfectly round and straight, it is necessary
to make them round. The rounds are pickled in the acid tanks,
washed and drawn in a drawing machine. The cleaned rod is
fed into the cold heading machine. In the machine, one end
of the rod is cut into the desired length with cutting stroke
and simultaneously the head formation takes at other end.
For the HT bolts, forging is done on hot forging press. The
pins are then trimmed in the trimming machine. In quality
bolts, the lower side of the head is also faced. Threading
is done in the thread rolling machines.
While manufacturing nuts, the hexagonal
rod of desired size is procured and the nuts are cut on the
automatic nut-cutting machine. Cutted nuts blanks are drilled
and tapped on the nut-tapping machine. Finally, these are
deburred in the polishing barrel.
| |
Process Flow Chart
(M.S. Bolts)
|
| |
†
|
| |
Mild steel rod
|
| |
†
|
| |
Bolt cutting
|
| |
†
|
| |
Head making
|
| |
†
|
| |
Head trimming
|
| |
†
|
| |
Thread rolling
|
| |
†
|
| |
Polishing
|
| |
†
|
| |
Store/despatch
|
| |
†
|
| |
Process Flow Chart (H.T. Bolts)
|
| |
†
|
| |
Mild steel rod
|
| |
†
|
| |
Wire drawing
|
| |
†
|
| |
Bolt cutting
|
| |
†
|
| |
Forging
|
| |
†
|
| |
Trimming
|
| |
†
|
| |
Threading
|
| |
†
|
| |
Heat treatment (800OC - 900OC)
|
| |
†
|
| |
Tempering (400OC - 500OC)
|
| |
†
|
| |
Plating/Coating
|
| |
†
|
| |
Store/despatch
|
Quality Control
and Standards
The Bureau of Indian Standards has laid down the following
quality standards for M.S. and High tensile fasteners such
as Bolts and Nuts:
IS 1363 : 1992
IS 1367 : 1994
IS 4206 : 1987
Production Capacity
| Quantity |
Value (In Rs.) |
| Nuts and Bolts of various
sizes |
720 MT |
Pollution Control
This industry involves pollution to some extent for which
State Pollution Control Board has to be approached.
Energy Conservation
The unit is equipped with electric powered
machinery. The energy conservation efforts need in unit is
the creation of awareness among the workers.
Financial Aspects
A Fixed Capital
| i) Land and Building
|
Amount
(In Rs.)
|
| (i) Land 1500 sq. mtr.
@ Rs. 3500 per sq. mtr including registration |
5250000
|
| (ii) Total built-up area
1200 sq. mtrs. as follows: |
|
| • Administrative
building 100 sq. mtrs. construction cost @ Rs. 7,500 per
sq. m |
750000
|
| • Factory
shed 1000 sq. mtrs. construction cost @ Rs.4000 per sq.
mtr. |
4000000
|
| • Stores,
staff canteen etc. 100 sq. mtrs. @ Rs. 4000 per sq. mtr.
|
400000
|
| • Water Supply
system(including Tube well +overhead tanK) |
100000
|
| Total civil cost= cost
of land + building |
10500000
|
(ii) Machinery and Equipment (per month)
| Sl. No. |
Description |
Qty. |
Total
(In Rs.)
|
| 1. |
Double stroke solid die
cold head forging machine suitable for bolt dia 6 mm to
18 mm and length 20 mm to 150 mm with 15 HP electric motor
|
1No. |
1000000
|
| 2. |
Head trimming machine
upto 18 mm dia bolt x 150 mm length with 10 HP electric
motor |
1No. |
600000
|
| 3. |
Thread rolling machine
suitable for upto 18 mm dia bolt x length 150 mm with
15 HP electric motor |
1 No. |
600000
|
| 4. |
Bull block wire drawing
machine |
1 No. |
160000
|
| 5. |
Wire pointing machine
with 1 HP motor |
1 No. |
25000
|
| 6. |
Steel polishing barrel
with electric motor |
1 No. |
60000
|
| |
Nut Making Section |
|
|
| 7. |
Automatic nut forming
plant, five station capacity 18 mm dia with 25 HP motor,
lubricant and coolant pump |
4 Nos. |
1600000
|
| 8. |
Nut tapping machine with
3 HP motor and stater |
4 Nos. |
300000
|
| 9. |
Semi muffle oil fired
furnace |
1 No. |
200000
|
| 10. |
Tempering furnace H.T.
air circulated type electrically heated temp. upto 500OC
3 KW rating |
1 No. |
100000
|
| 11. |
Die, tools guage and
measuring instruments |
L.S. |
250000
|
| |
Electrification and installation
@ 10% |
|
489500
|
| |
Office equipment and
furnitures |
|
80000
|
| |
Generator Set for electricity
backup |
|
300000
|
|
Total
|
5764500
|
|
Total Fixed Capital i.e Cost of
Building + Machinery
|
16264500
|
B. Working Capital (per month)
(i) Personnel
| Sl.No. |
Designation |
No. |
Salary (Rs.) |
Total
(In Rs.)
|
| 1. |
Manager |
1 |
15000 |
15000
|
| 2. |
Office Assistant/clerk
|
1 |
8000 |
8000
|
| 3. |
Skilled worker |
12 |
7000 |
84000
|
| 4. |
Semi-skilled Worker |
4 |
6000 |
24000
|
| 5. |
Un-skilled Worker |
6 |
4500 |
27000
|
| 6. |
Watchman-cum-Peon |
1 |
3000 |
3000
|
| 7. |
Supervisor |
2 |
8000 |
16000
|
|
Total
|
177000
|
|
Perquisites @ 22%
|
38940
|
|
Total
|
215940
|
(ii) Raw Material (Indigenous)
| Sl. No. |
Particulars |
Qty. |
Amount
(In Rs.)
|
| 1. |
M.S. Wire/rod 6mm - 18mm
dia @ Rs.36000/ MT |
38.5 MT |
1386000
|
| 2. |
Hexagonal M.S. rod 6mm
- 18mm dia @ Rs. 35000 per MT |
21.50 MT |
752500
|
| 3. |
Packing/Polishing
materials and
consumables |
L.S. |
30000
|
|
Total
|
2168500
|
| (iii) Utilities |
(In Rs.)
|
| i) Electricity |
60000
|
| ii) Furnace oil, 12000
ltrs. @Rs. 40 per ltr. |
480000
|
| iii) Lubricant oil etc.
|
5000
|
|
Total
|
545000
|
| (iv) Other Contingent
Expenses |
(In Rs.) |
| 1. Maintenance and repair
|
5000 |
| 2. Postage, stationery
and phone |
8000 |
| 4. Packing and transport
|
20000 |
| 3. Travelling and conveyance
|
10000 |
| 4. Insurance |
2000 |
| 5. Miscellaneous expenses
|
10000 |
|
Total
|
55000
|
| (v) Total
Recurring Expenditure [i + ii + iii + iv] |
| |
| i) 215940+(ii)
2168500+(iii)545000+(iv) 55000 |
| =2984440
|
| |
| (vi) Total Working Capital
for 1.5 months Rs |
4476660
|
C. Total Capital Investment
| (i) Fixed Capital |
16264500
|
| (ii) Working Capital
(for 1.5 Months) |
4476660
|
|
Total
|
20741160
|
Financial Analysis
| (1) Cost of Production
(per annum) |
(In Rs.)
|
| Total recurring cost
|
35813280
|
| Depreciation on machines
and equipments @ 10% |
489500
|
| Depreciation on office
and equipment @ 20% |
16000
|
| Interest on total Capital
Investment @ 12% |
2488939
|
| Depreciation on Building
@ 5 % |
525000
|
|
Total
|
39332719
|
| Sl. No |
(2) Total Sales (per
annum) |
Rate Rs/Kg |
Qty in MT |
(In Rs.)
|
| (i) |
MS bolts |
58 |
240 |
13920000
|
| (ii) |
MS nuts |
58 |
120 |
6960000
|
| (iii) |
HT bolts |
65 |
230 |
14950000
|
| (iv) |
HT nuts . |
70 |
130 |
9100000
|
|
Total
|
44930000
|
| (3) Profit (per year)
|
|
|
| |
|
Rs. 44930000 - 39332719
|
| |
= |
5597281 |
| |
|
|
| (4) Net Profit Ratio
on Sale |
| |
= |
Net profit × 100
-------------------- |
| |
|
Turnover |
| |
|
|
| |
= |
5597281× 100
------------------- |
| |
|
44930000 |
| |
|
|
| |
= |
12.46 |
| |
|
|
| (5) Rate of Return |
= |
Net profit × 100
--------------------------- |
| |
|
Total investment |
| |
|
|
| |
|
5597281 × 100
--------------- |
| |
|
39332719 |
| |
|
|
| |
= |
14.23 |
(6) Break-even Point
| Fixed Cost (per annum)
|
(In Rs.) |
| 1. Depreciation on Buildings
|
525000
|
| 2. Depreciation on machinery
and equipment |
489500
|
| 3. Depreciation on office
equipment |
16000
|
| 4. Interest on total
investment |
2488939
|
| 5. 40% of salary and
wages |
1036512
|
| 6. 40% of other contingent
expenses excluding insurance |
254400
|
| 7 100 % of Insurance
|
24000
|
|
Total
|
4834351
|
| B.E.P |
= |
4834351 × 100
----------------------- |
| |
|
4834351 + 5597281 |
| |
|
|
| |
= |
46.34 |
Addresses of
Machinery and Equipment Suppliers
1. M/s. Sohal Engineering Corporation
61, Ganesh Chandra Avenue,
Kolkata - 700013
2. M/s. Perfect Machine Tools Co. Pvt. Ltd.
Bell Building, Sir P.M. Road,
Fort, Mumbai
3. M/s. Manek Lal and Sons.
23, Ganesh Chandra Avenue,
Kolkata - 700 013
4. M/s. Industrial Machine Corporation
F-36-C, Sainik Market,
Main Road, Ranchi
5. M/s. S.S. Sabarwal and Sons
664, Military Road,
Anand Parbat Indl. Area,
New Delhi-110005
6. M/s. Kalihar Machine Tools
Plot No. 18696/1,
K.M. Singh St. No. 7,
Ludhiana
7. M/s. H. Mann Industries
Ram Tirath Road,
Amritsar - 143 001
Addresses of Raw Material Suppliers
1. M/s. Usha Martin Industries
Tatisilwai,
Ranchi
2. M/s. M. V. Wires Pvt. Ltd.
Poddar Estate, Mahilong,
Ranchi,
3. Local Market
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
