|
Tyre Retreading (By Cold Process)
| Product Code |
: |
300401000 |
| Quality and Standards
|
: |
Manufacturers' own specifications
|
| Production Capacity
|
: |
1. LCV Tyre Retreading
Size-700×15-2400 Nos.
2. Passenger Car Tyre Retreading
Size-590×15-3600 Nos.
3. Truck Tyre Retreading Size 300x20-3000
Value : Rs. 124.8 Lakhs |
| Uploaded
on |
: |
May
2007 |
Introduction
Retreading of damaged tyre is done by
conventional hot matrix curing in most cases. But recently
a new technology has been developed called “Precured Tread
Rubber Retreading Process” which is commonly known as “Cold
Process Retreading”. In this process, the Precured Tread Rubber
already has a tread pattern on it eliminating the need for
a tread matrix at vulcanizing stage. Tread Rubber is precured
along with other raw materials and manufactured in the factory
under controlled conditions and given a well researched pattern
ensuring that the transporter gets a reliable perfectly finish
product. Retreading Tyre by precured method gives 50% more
mileage than the tyre retreaded by conventional process.
Market Potential
The market demand of tyre retreading by
cold process is increasing day by day. There is a good scope
for setting up units for tyre retreading by cold process using
procured tread rubbers.
Basis and Presumptions
This project profile has been prepared
based on the following presumptions:
1. Production capacity is calculated on single shift of 8
hours a day for 300 working days in a year at 75% efficiency.
2. Capacity utilization is 60% during first year 80% in second
year and full capacity utilization from 3 rd year onwards.
3. The salaries and wages, cost of raw
material, utilities, cost of the shed etc. are based on prevailing
rates in and around local region hence cost factor is likely
to vary with location of the units.
4. Interest on terms loan and working
capital has been taken @ 12% on an average. The rate may vary
depending upon policy of financial institutions and agencies
from time to time.
5. The cost of machinery and equipments refers to particular
make and model and prices are approximate to those ruling
at the preparation of the same.
6. The project preparation cost, nonrefundable deposits, may
be considered under the head of preoperative expenses.
7. The break even point is calculated on full capacity utilization.
8. Power at the rate of Rs. 5.5 /KW is taken.
9. The operation period of this project is estimated to be
about 10 years considering technology obsolescence.
Implementation Schedule
| Sl.No. |
Activity |
Period |
| 1. |
Site selection preparation
of project report and other formalities, application for
loan and finance/ disbursement and, DIC registration etc.
|
6 months |
| 2. |
Seeking quotation for
machines, purchase, installation and power connection,
obtaining clearances from Pollution Control Board and
other Govt. bodies and agencies. |
3 months |
| 3. |
Procurement of raw material,
recruitment of staff and labour and commercial production
|
3 months |
| 4. |
Total period required
for commencing commercial production. |
12 months |
Technical Aspects
Process of Manufacture
The tyre coming from the customers is
cleaned dully. Dust and mud are removed. The casing is inspected
for cuts, ply section, condition of beads etc., and based
on the condition of the casing, the tyre is selected or rejected.
Under inflated conditions the selected tyre's crown area is
buffed to the required texture and contour. This is for better
bonding of procured rubber to the casing. The buffed casing
is mounted on the tread building machine. Cushion compound
is applied on the buffed tread area over which the procured
tread rubber is applied and stickled using rollers. The joint
portion of the procured tread rubber is stepped to avoid possible
opening during curing of the tyre. The build up of the tyre
is covered by a rubber envelope and placed in the “bonder”
and the bonder steam is passed at specific temperature, which
cures the cushion compound to complete the bonding of the
tread on the casing.
Quality Control
and Standards
No such standard is available but the treading will be done
as per the specifications fixed by tyre manufacturers.
Production Capacity (per annum)
| 1. LCV Tyre retreading
Size-700×15 |
2400 Nos. |
| 2. Passenger Car Tyre
Retreading Size-590×15 |
3600 Nos. |
| 3. Truck Tyre Retreading
Size-300×20 |
3000 Nos. |
Pollution Control
Tyre Retreading work generally should
not be done in public place and NOC from Pollution Control
Board may be obtained.
Energy Conservation
All efforts are to be put in for optimum
utilization of power. The following measures can be adopted
to conserve power and save energy:
1. Proper maintenance of power operated equipments and machinery
and fuel operated boiler and their judicious use.
2. Shed to be properly ventilated and covered with transparent
sheet to have enough light in day time with minimum requirements
of lighting.
Financial Aspects
A Fixed Capital
| (i) Land and Building
|
Amount
(In Rs.) |
| (i) Land 300 sq. mtr.
@ Rs. 5000 per sq. mtr including registration |
1500000 |
| ii) Cost of land development,
fencing, approach road, inside roads, land scaping, drainage
etc. @ Rs. 1000 per sq. mtr. |
300000 |
| (iii) Total built-up
area 250 sq. mtrs. as follows: |
|
| Administrative building
50 sq. mtrs. construction cost @ Rs. 7,500 per sq. m |
375000 |
| Hall cum shed 150 sq.
mtrs. construction cost @ Rs.6000 per sq. mtr. |
900000 |
| Stores, staff canteen
etc. 50 sq. mtrs. @ Rs. 6,000 per sq. mtr. |
300000 |
| Water System (including
Bore Well + over head tank etc) |
500000 |
| Total civil cost=
cost of land + building |
3875000 |
(ii) Machinery and Equipment
| Sl. No. |
Particular |
Ind./ Imp. |
Qty. Nos. |
Price(Rs.) |
Total
(In Rs.) |
| 1. |
Buffing machine with
dust collector builder tyre truck bonder/three tyre LCV/Passenger
bonder with curing rims and Electric hoist |
Ind |
1 |
750000 |
750000 |
| 2. |
Work bench Envelope/Tyre
stand Gantry |
Ind. |
1 |
60000 |
60000 |
| 3. |
Boiler cap. 300 kg/hrs.
|
do |
1 |
400000 |
400000 |
| 4. |
100 Ibs working pressure
Air compressor fitted with 5 H P Motor |
do |
1 |
70000 |
70000 |
| 5. |
Air conditioner |
do |
1 |
50000 |
50000 |
|
Total
|
1330000 |
| Electrification and Installation
at 10% of the above cost |
133000 |
| Office Equipments and
Furniture. LS |
80000 |
| Cost of Auxiliary items.
i.e. pipe erection Electric fittings, Retreading, Tools,
Mechanical Hoist with Trolley etc. |
200000 |
|
Total
|
1743000 |
| (iii) Pre-operative
Expenses |
50000 |
| Total Fixed Capital Requirement
(i)+(ii)+(iii) |
5668000 |
B. Working Capital (per month)
(1) Personnel
| Sl.No. |
Designation |
Nos. |
Salary (Rs.) |
Amount
(In Rs.) |
| 1. |
Manager |
1 |
15000 |
15000 |
| 2. |
Supervisor (Technical)
|
1 |
10000 |
10000 |
| 3. |
Skilled Workers |
5 |
7000 |
35000 |
| 4. |
Semi-skilled Workers
|
6 |
5000 |
30000 |
| 5. |
Un-skilled Workers/ Helper
|
3 |
3000 |
9000 |
| 6. |
Clerk cum Typist |
1 |
6000 |
6000 |
| 7. |
Salesman |
1 |
8000 |
8000 |
| 8. |
Office Assistant- cum-peon
|
1 |
3000 |
3000 |
| 9. |
Watchman |
1 |
3000 |
3000 |
|
Total
|
119000 |
(ii) Raw Material (per month)
| Sl. No. |
Particular |
Qty. |
Unit |
Price(Rs.)/Unit |
Total
(In Rs.) |
| a) For Retreading
200 LCV Tyre in Precured System |
| i) |
Precured Tread Rubber
|
1000 |
Kg |
110 |
110000 |
| ii) |
Cushion Compound |
100 |
Ltr |
100 |
10000 |
| iii) |
Vulcanising Solution
|
60 |
Ltr |
90 |
5400 |
| iv) |
Envelope |
200 |
Nos |
10 |
2000 |
|
Total
|
127400 |
| b) For
Retreading 300 Passenger Car Tyre in Precured System |
| i) |
Precured Tread Rubber
|
900 |
kg |
110 |
99000 |
| ii) |
Cushion Compound |
105 |
Ltr |
100 |
10500 |
| iii) |
Vulcanising Solution
|
75 |
Ltr |
90 |
6750 |
| iv) |
Envelope |
300 |
Nos |
10 |
3000 |
| v) |
Curing Bag |
300 |
Nos |
8 |
2400 |
|
Total
|
121650
|
| c) For
Retreading 250 Nos. Truck Tyre in Precured System |
| i) |
Precured Tread Rubber
|
2375 |
kg |
110 |
261250 |
| ii) |
Cushion Compound |
252 |
Ltr |
100 |
25200 |
| iii) |
Valcanising Solution
|
250 |
Ltr |
90 |
22500 |
| iv) |
Envelope |
250 |
Nos |
10 |
2500 |
| v) |
Curing Bags |
250 |
Nos |
8 |
2000 |
|
Total
|
313450 |
| Total Raw
Material(a)+(b)+(c) |
562500 |
| (iii) Utilities (per
month) |
(In Rs.) |
| Power @ Rs. 5.5 for 3600
units |
19800 |
| Fuel for Boiler |
30000 |
|
Total
|
49800 |
| (iv) Other Contingent
Expenses |
(In Rs.) |
| 2. Postage and Stationery
|
3000 |
| 3. Insurance and Taxes
|
4000 |
| 4. Telephone |
3000 |
| 5. Repair and Maintenance
|
5000 |
| 6. Publicity and Advertisement
|
10000 |
| 7. Travelling and Transport
|
15000 |
| 8. Renewal and Replacement
|
5000 |
| 9. Other Miscellaneous
Expenses |
15000 |
|
Total
|
60000 |
| (v) Total Recurring
Expenses |
(In Rs.) |
| 1. Staff and Labour |
119000 |
| 2. Raw Material |
562500 |
| 3. Utilities |
49800 |
| 4. Other Contingent Expenses
|
60000 |
|
Total
|
791300 |
| (vi) Total
Working Capital for 2 Months |
| Rs. 791300 x 2 = |
1582600 |
C. Total Capital Investment
| 1. Fixed Capital |
5668000 |
| 2. Working Capital (for
2 month) |
1582600 |
|
Total
|
7250600 |
Financial Analysis
| (1) Cost of Production
(per annum) |
(In Rs.) |
| 1. Recurring Expenses
|
9495600 |
| 2 Depreciation on Building
@ 5 % |
193750 |
| 3. Depreciation on Machinery
@ 10% |
133000 |
| 4. Depreciation on tool
and Fixtures @ 20% |
40000 |
| 5. Depreciation on Furniture
and Office Equipments @ 20% |
16000 |
| 6. Interest on Total
Capital Investment @ 12% |
870072 |
|
Total
|
10748422 |
(2) Turnover (per annum)
| Precured Retreaded Charge
for LCV |
| |
Tyre size
-700×15, 2400 Nos. × Rs. 1200 |
| |
2880000 |
| b) Passenger Car Tyre
Size - 590×15 |
| |
3600 Nos. x Rs. 1000
|
| |
3600000 |
| c) For Truck Tyre Size
- 300 × 20 |
| |
3000 Nos. x Rs. 2000
|
| |
6000000 |
|
|
12480000 |
| (3) Profit (per annum)
|
|
Sales – Cost of Production
|
| |
= |
12480000– 10748422 |
| |
= |
1731578 |
| |
|
|
| (4) Net Profit Ratio
|
= |
Profit (per annum) ×
100
-------------------- |
| |
|
Sale (per annum) |
| |
|
|
| |
= |
1731578× 100
------------------- |
| |
|
12480000 |
| |
|
|
| |
= |
13.87 |
| |
|
|
| (5) Rate of Return |
= |
Profit (per annum) ×
100
--------------------------- |
| |
|
Total Capital Investment
|
| |
|
|
| |
|
1731578 ×100
--------------- |
| |
|
7250600 |
| |
|
|
| |
= |
23.88 |
(6) Break-even Point
| Fixed
Cost |
(In Rs.)
|
| 1 Depreciation on Building
@ 5 % |
193750 |
| 2. Depreciation on Machinery
@ 10% |
133000 |
| 3. Depreciation on tool
and Fixtures @ 20% |
40000 |
| 4. Depreciation on Furniture
and Office Equipments @ 20% |
16000 |
| 5. Interest on Total
Capital Investment @ 12% |
870072 |
| 6. 40% of Salary and
Wages |
571200 |
| 7. 40% of Utilities and
Other Contingent Expenses |
527040 |
|
Total
|
2351062 |
|
B.E.P
|
=
|
Fixed Cost x 100
-----------------------
|
|
|
|
Fixed Cost + Profit
|
|
|
|
|
|
|
=
|
2351062 x 100
-----------------------
|
|
|
|
2351062 + 1731578
|
|
|
|
|
|
|
=
|
57.59
|
Addresses of
Machinery Suppliers
1. M/s. Security Equipment Engineers
48, Chetla, Road,
Kolkata- 700027
2. M/s. Industrial Rubber Products
20, Khanpara Road,
Kolkata - 700065
3. M/s. Nandi and Co.
125, Belilious Road,
Howrah - 711101 (WB)
4. M/s. Chand and Co. Engineering Pvt. Ltd.
3/18, Mahendra Road,
Kolkata-700025
5. M/s. Die Hard Polimer Products
117, Ghorkha Basi Road,
Kolkata - 700028
Addresses of Raw Material Suppliers
1. Local Market
2. M/s. H. K. Agarwal and
Co. Sevoke Road,
Siliguri–734401
3. M/s. Beekay Hardware
Tadong, Gangtok,
Sikkim–737102
4. M/s. Cherry. Pvt. Ltd.
31-A National Highway, Gangtok,
Sikkim–737101
5. M/s. Vinod Enterprises
Near Convey Ground, Tadong,
Gangtok,
Sikkim–737101
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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