|
Aluminium Fabrications
|
Product Code
|
:
|
335908004
|
|
Quality and Standards
|
:
|
As Per IS 1948:1961 and IS1949:1961
|
|
Production Capacity: Qty.
|
:
|
(a) Stair Case Hand Rails 9,000 sq. ft.
Value : Rs. 54,44,000
Qty. : (b) Doors 12,000 sq. ft
Value : Rs. 58,05,000
Qty. : (c) Windows 13,000 sq. ft
Value : Rs. 56,61,000
|
| Uploaded on |
: |
February 2007 |
Introduction
Aluminium fabricated items like doors,
windows, staircase hand rails and supports, railings for verandas,
corridors etc. have become the generally accepted feature
in most modern buildings. The use of aluminium in business
and office complexes, buildings, theatres as well as decorative
purposes is very common. Similarly in residential buildings
also aluminium doors, windows, railings, grill-works etc.
are used extensively. Textile shops and other trading shops
built in lighter materials too are going in for shelves made
of aluminium for stocking purposes.
The advantages of aluminium such as light
weight, strength, corrosion resistance, durability, easy in
fabrication, attractive appearance and easy maintenance make
it a popular material for use in modern buildings. Aluminium
required for use in buildings is available from large scale
manufacturers such as Indal, Balco, Jindal etc. as extruded
sections in various shapes and sizes for specific uses. These
sections are also available through their local dealers. The
usual length of these sections is 12 feet/4 meters. Fabricators
anodise these to desired colours and fabricate the items as
per the customers' requirements. These items have good appearance
and finish and the maintenance expenses are almost nil while
steel and wooden items require regular painting and polishing
periodically.
Market Potential
The development and construction activities
being inter-linked, there is good scope for aluminium fabrication
units for meeting the growing demand of new buildings for
offices, business and shopping complexes, theatres etc. Aluminium
fabricated and anodised items like doors, windows, railings,
staircases, shelves, ladders etc. are being increasingly used
in the modern constructions on consideration of durability
and appearance. If the present trend is any guide, theatres,
restaurants, hotels, shopping complexes, office premises and
other luxurious buildings will fast replace wooden materials
with aluminium fabricated items. The consumption of these
items is already on the increase.
Basis and Presumptions
1. The production of the unit is worked
out on the basis of single shift of 8 hours a day for 300
working days a year. The unit is expected to work at 70% efficiency
in the first year.
2. The unit is expected to achieve 80% production capacity
in the second year onwards.
3. Wages for labour etc. have been taken
as per the rate prevailing at the time of preparation of the
project profile.
4. Interest rate is calculated @ 12% on
Capital Investment.
5. Entrepreneur has to raise 25% of the
capital investment as margin money.
6. Considering the product and usage,
the project can last for more than 10 years. The repayment
of term loans will be made in 5 years after one year moratorium.
7. The unit is proposed to function in own building.
8. Cost of machinery and equipment has been taken as per the
rates quoted by machinery manufacturers/suppliers.
Implementation Schedule
|
Sl. No.
|
Name of Activity
|
Period
|
|
1.
|
Preparation of project report:
(a) Calling Quotations
(b) Scheme Preparation
|
5 weeks
2 weeks
|
|
2.
|
Provisional Registration as SSI
|
1 week
|
|
3.
|
Financial arrangement from financial
institutions and others
|
12 weeks
|
|
4.
|
Purchase and procurement of machinery
and equipment
|
8 weeks
|
|
5.
|
Erection and electrification
|
3 weeks
|
|
6.
|
Recruitment of personnel
|
4 weeks
|
Some activities shown above can be undertaken
simultaneously in order to minimise the period of completion
of the project.
Technical Aspects
Process of Manufacture
Manufacturing process involves anodising
the aluminium extruded sections first and then fabrication.
Anodising process involves buffing, pickling in acid solution,
then cleaning in water, neutralising in acid and keeping the
extruded sections in anodising tank for specified time. After
anodising, the sections are to be fabricated as per the design
and sizes of the customer by cutting, drilling, bending, welding,
screwing, riveting, assembling with glasses and beading, wherever
necessary. Handles locks etc. are also fitted as per requirements.
Production Capacity (per annum)
|
Items
|
Quantity
|
Value (In Rs.)
|
|
Stair Case Hand Rails
|
9,000 sq. ft
|
54,44,000
|
|
Doors
|
12,000 sq. ft
|
58,05,000
|
|
Windows
|
13,000 sq. ft
|
56,61,000
|
Quality Control and Standards
IS 1948:1961 specifies requirements regarding
materials, fabrication and dimensions of aluminium doors,
windows and ventilators manufactured from extruded aluminium
alloy sections of standard sizes and designs completed with
fittings ready for fixing with buildings. This standard does
not cover the requirements for industrial doors, windows and
ventilators.
IS 1949:1961 deals with aluminium windows
suitable for use in industrial buildings.
Aluminium doors, windows, stair case hand
rails etc. are made as per the customers' specifications and
requirements. Workmanship and high finish are main criteria
for these kind of products. Care should be taken in joining
and assembling to get better appearance and finish.
Pollution Control
The anodising process using acid solution
may leave residual solution which has to be disposed off periodically.
The local Pollution Control Board may be consulted for appropriate
method of disposal of these solutions.
Energy Conservation
Energy Conservation Energy consumption
of this unit is on the low side since the lower powered motors
are used in the production activity. The workers of the unit
should be made aware of the need to conserve energy by switching
off the energy sources when not required.
Financial Aspects
A. Fixed Capital
|
(i) Land and Building
|
Amount
(In Rs.)
|
|
(i) Land 500 sq. mtr. @ Rs. 3500
per sq. mtr including registration
|
17,50,000
|
|
(ii) Cost of land development, fencing,
approach road, inside roads, land scaping, drainage
etc. @ Rs. 1000 per sq. mtr.
|
5,00,000
|
|
(iii) Total built-up area 350 sq.
mtrs. as follows:
|
|
- Administrative building 75 sq.
mtrs. construction cost @ Rs. 7,500 per sq. m
|
5,63,000
|
- Factory shed 200 sq. mtrs. construction
cost @ Rs.5000 per sq. mtr.
|
10,00,000
|
- Stores, staff canteen etc. 75
sq. mtrs. @ Rs. 6,000 per sq. mtr.
|
4,50,000
|
|
Total civil cost= cost of land
+ building = 20,13,000 + 17,50,000
|
37,63,000
|
(ii) Machinery and Equipments
|
Sl. No.
|
Description |
Qty.
|
Amount
(In Rs.)
|
|
1.
|
Heavy duty cut off machine with
2 HP motor, starter etc.
|
1
|
75,000
|
|
2.
|
TIG Welding M/c. with all accessories
|
1
|
3,00,000
|
|
3.
|
Anodising plant complete with rectifier
500 Amps 30 volts, complete with necessary tanks of
14 ft. length and initial chemical
|
1
|
7,00,000
|
|
4.
|
Buffing machine with 2 HP motors
|
2
|
50,000
|
|
5.
|
Drilling machine 12 mm cap. with
0.5 HP motor
|
1
|
25,000
|
|
6.
|
Double ended bench grinder 200 mm
with 0.75 H.P. motor and hand tools
|
1
|
50,000
|
|
7.
|
Bore well, pollution control and
DG set
|
-
|
10,00,000
|
|
8.
|
Portable Electric Drill
|
2
|
20,000
|
|
9.
|
Office furniture and equipments
|
-
|
5,00,000
|
|
10.
|
Excise, sales tax & erection
and installation charges 40% of total of 1 to 9
|
-
|
10,88,000
|
|
Total
|
38,08,000
|
|
(iii)Pre-operative expenses
|
3,00,000
|
|
Total fixed assets (i) + (ii) +(iii)
|
78,71,000
|
B. Working Capital (per month)
(i) Personnel
|
Sl. No.
|
Description |
Nos.
|
Salary (Rs.)
|
Amount (In Rs.)
|
|
1.
|
Manager
|
1
|
15,000
|
15,000
|
|
2.
|
Superviser
|
1
|
7,000
|
7,000
|
|
3.
|
Skilled Worker
|
3
|
6,000
|
18,000
|
|
4.
|
Semi-skilled Worker
|
6
|
4,000
|
24,000
|
|
5.
|
Helper
|
4
|
3,000
|
12,000
|
|
6.
|
Accountant, Sales and marketing
team, purchase
|
6
|
6,000
|
36,000
|
|
7.
|
Field Workman
|
3
|
6,000
|
18,000
|
|
8.
|
Peon/Watchman
|
3
|
3,000
|
9,000
|
|
Total
|
1,39,000
|
|
Employees benefits @ 22%
|
31,000
|
|
Total
|
1,70,000
|
(ii) Raw Materials
|
Sl. No.
|
Description |
Qty.
|
Amount
(In Rs.)
|
|
Aluminium extruded sections such
as follows:
|
|
1.
|
Book type hand rails 4" size
|
480 ft.
|
30,000
|
|
2.
|
1" square pipe
|
3000 ft.
|
60,000
|
|
3.
|
Flats 2" width × 1/8"
thick
|
480 ft.
|
7,000
|
|
4.
|
4½ × ½"
section
|
324 ft.
|
20000
|
|
5.
|
2½ × 1½"
section
|
1200 ft.
|
60,000
|
|
6.
|
2" × 1" section
|
1200 ft.
|
45,000
|
|
7.
|
Aluminium wire 2 mm for welding
|
2000 ft.
|
10,000
|
|
8.
|
Handle section for doors
|
60 ft.
|
3,000
|
|
9.
|
Clips
|
4200 ft.
|
35,000
|
|
10.
|
Glass sheet 3 mm/4.5 mm thick
|
1920 ft.
|
73,000
|
|
11.
|
Chemicals for anodising
|
LS
|
15,000
|
|
12.
|
Misc. items such as hinges, screw,
rubber beading, tower bolts, locks, wooden plug etc.
|
LS
|
45,000
|
|
Total
|
403,000
|
|
(iii) Utilities
|
Amount (In Rs.)
|
|
Electricity - 3,000 units @ Rs.
4.00 unit
|
12,000
|
|
Water L.S.
|
2,000
|
|
Total
|
14,000
|
|
(iv) Other Contingent Expenses
|
Amount
(In Rs.)
|
|
1
|
Postage, stationery, communications
and other office services
|
20,000
|
|
2
|
Consumable stores, tools, repair
and maintenance
|
30,000
|
|
3
|
Transport and conveyance
|
30,000
|
|
4
|
Advertisement and sales promotion
|
50,000
|
|
5
|
Insurance
|
4,000
|
|
6
|
Miscellaneous
|
15,000
|
|
Total
|
1,49,000
|
|
(v) Total Recurring Expenditure
(per month)
|
(In Rs.)
|
|
(i) Personnel
|
1,70,000
|
|
(ii) Raw material
|
4,03,000
|
|
(iii) Utilities
|
14,000
|
|
(iv) Other Contingent Expenses
|
1,49,000
|
|
Total
|
7,36,000
|
Working capital is considered for an average
working Capital cycle of 1½ months
|
Hence, Working Capital
|
= Rs. 7,36,000 × 1½
|
|
|
= Rs. 11,04,000
|
C. Total Capital Investment
|
1. Fixed Capital
|
(In Rs.)
|
|
Fixed assets
|
78,71,000
|
|
Working Capital (for 1½ months)
|
16,56,000
|
|
Total
|
95,27,000
|
Financial Analysis
|
(1) Cost of Production (per year)
|
Amount
(In Rs.)
|
|
Total recurring expenditure
|
1,32,48,000
|
|
Depreciation on Building @ 5%
|
1,01,000
|
|
Depreciation on Machinery and Equipment
@ 10%
|
3,31,000
|
|
Depreciation on office equipment
@ 20%
|
1,00,000
|
|
Interest on total capital investment
@ 12%
|
11,43,000
|
|
Total
|
1,49,23,000
|
|
(2) Turnover (per year)
|
(Rs.)
|
|
(a) Stair-case hand rails 9000 ft.
@ Rs. 604.89 per ft.
|
54,44,000
|
|
(b) Doors - 12,000 sq. ft. @ Rs.
483.75 per sq. ft.
|
58,05,000
|
|
(c) Windows 13,000 sq. ft. @ Rs.
435.46 per sq. ft.
|
56,61,000
|
|
(d) Sale of Scrap
|
2,90,000
|
|
Total
|
1,72,00,000
|
|
(3) Net Profit (per year) (Before
Income Tax)
|
|
Net Profit
|
=
|
Total Sales – Cost of Production
|
|
|
=
|
Rs. 1,72,00,000 - Rs. 1,49,23,000
|
|
|
=
|
Rs. 22,77,000
|
|
|
|
|
|
(4) Net Profit Ratio
|
=
|
Net Profit per year×100
--------------------
|
|
|
|
Turnover per year
|
|
|
|
|
|
=
|
22,77,000 × 100
-------------------
|
|
|
|
1,49,00,000
|
|
|
=
|
15.2%
|
|
|
|
|
|
(5) Rate of Return
|
=
|
Net Profit per Year ×100
---------------------------
|
|
|
|
Total Investment
|
|
|
|
|
|
|
=
|
22,77,000 × 100
-------------------
|
|
|
|
95,27,000
|
|
|
=
|
23.9%
|
(6) Break-even Point
|
Fixed Cost (per year)
|
Amount
(In Rs.)
|
|
Depreciation on building, machinery
and office equipment
|
5,32,000
|
|
Interest on total capital investment
|
11,43,000
|
|
40% Salary and Wages
|
8,16,000
|
|
40% other contingent expenses
|
7,15,000
|
|
Total
|
32,06,000
|
|
B.E.P
|
=
|
Fixed cost × 100
--------------------
|
|
|
|
Fixed cost + Profit
|
|
|
|
|
|
|
=
|
32,06,000 × 100
---------------------
|
|
|
|
32,06,000 + 22,77,000
|
|
|
|
|
|
|
=
|
58.47%
|
Addresses of
Machinery and Equipment Suppliers
1. M/s. Engineering Tools and Equipments
Post Box No. 1972,
64, S.B. Singh Road,
Mumbai - 400023.
2. M/s. C M F Engineering
3-A, Continental Plaza,
705, Annasalai,
Chennai - 600006.
3. M/s. India Machine Tools Company
Pulikwal Buildings
Post Box No. 1781,
M.G. Road, Eranakulam,
Cochin - 670002.
4. M/s. Hind Rectifier Ltd.
Lake Road, Bhandup,
Mumbai - 400078.
5. M/s. Archem Industries
1/IC, Abdul Halim Lane,
Kolkata - 700016.
Addresses of Raw Material Suppliers
1. M/s. Hindustan Aluminium
Corporation Ltd.
Industry House,
159, Church Gate Reclamation,
Mumbai - 400020.
2. M/s. Jindal Aluminium Company Limited
Tumkur Road, 7th Mile Stone,
Bangalore.
3. M/s. Aluminium Corporation of India Ltd.
7 - Council Street,
Kolkata - 700001.
4. M/s. Premier Metals and Engg. Company
T. D. Road,
Eranakulam - 682018.
5. M/s. Bhorukha Aluminium Limited
K. R. S. Road, Matagally,
Mysore - 570016.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
