|
Welded Wire Mesh
| Product Code |
: |
349910014 |
| Quality and Standards
|
: |
As per customers' specifications.
|
| Production Capacity |
: |
Qty. : 3384 MT (per annum)
Value : Rs. 115732800 |
| Uploaded on |
: |
April 2007 |
Introduction
Welded wire mesh is the latest development
in land wire product industry. The welded wire, generally
called reinforcing wire, is mostly used in cement concrete
work for construction of buildings, National Highway pavements,
runways, dams, airports etc. It is also used for fencing purposes
and for partition walls and as a safety guard in engineering
workshops.
Market Potential
Welded wire mesh is used extensively in
constructional work and fencing purposes. The wire mesh is
made by automatic welding process, thus saving a lot of human
labour and achieving uniformity in distance and quality.
Basis and Presumptions
1 The project profile has been prepared
on the basis of two shifts per day of 8 hours duration each
having 300 working days per year.
2. The capacity utilisation is assumed as 75% for the first
year and 100% onwards.
3. Promoters contribution towards margin money is taken as
nil.
4. Interest is calculated both on fixed and working capital
at a simple rate of 12%.
5. Rate of machinery and equipments, raw material and other
items is based upon the prices prevailing at the time of preparation
of the project.
6. Break-even point is calculated at 100% capacity utilisation.
7. Building is of own
Implementation Schedule
| Sl.No. |
Activity |
Period |
| 1. |
Preparation of Project
Report: |
|
| |
(a) Calling quotations
|
4 weeks |
| |
(b) Preparation |
2 weeks |
| 2. |
Provisional Registration
as SSI |
1 week |
| 3. |
Financial arrangement
with 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.
Technical Aspects
Process of Manufacture
6 to 20 wires depending on the type of
mesh are fed horizontally, parallel to one another over rollers
to the machine. Distance between these wires is as per design.
From the machine, a cross wire overtapping the parallel wires
is fed and all the joints are electrically welded. The rollers
move the parallel wires further and another cross wire comes
in at specified distance. The process goes on, to give a wire
mesh of desired specification. The welded wire mesh is pulled
out for making rolls.
Quality Control
and Standards
As the product is being processed in an automatic welding
machine, the quality raw material of M.S. wire or G. I. wire
of standard gauges is to be used to keep the production schedule
of the machine. The proper maintenance of machine is necessary
from time to time. Production is done according to specifications
given by the customer.
Production Capacity (per annum)
| Quantity |
3384 Mt. |
| Value |
Rs. 115732800 Lakhs |
Pollution Control
The level of pollution in this type of
industry is minimal. However, permission and guidance from
State Pollution Control Board is to be sought to meet its
requirements.
Financial Aspects
A Fixed Capital
| (i) Land and Building
|
(In Rs.) |
| (i) Land 1000 sq. mtrs.
@ Rs. 3500 per sq. mtr including registration. |
3500000 |
| (ii) Cost of land development,
fencing, approach road, inside roads, land scaping, drainage
etc. @ Rs. 1000/ sq. mtr. |
1000000 |
(iii) Total built-up
area would be 700 sq. mtrs. as follows:
Administrative building 100 sq.mtrs. construction cost
Rs. 6000 persq. mtr. |
600000 |
| Factory shed 450 sq.
mtr. construction cost @ Rs. 4000 per sq. mtr. |
1800000 |
| Stores and staff canteen
etc. 150 sq. mtrs @ Rs. 4000 per sq. mtr. |
600000 |
|
Total
|
7500000 |
(ii) Machinery and Equipment
| Sl. No. |
Description |
Qty. |
Amount
(In Rs.) |
| 1. |
Semi-automatic wire mesh
Welder model WMW 1800 suitable for manufacturing wire
meshes having a width of 6 feet with different sizes and
wire diameters varying from 2 mm to 5.6 mm (prestraightened
and cut to length) complete with solid state synchronous
IC controller, thyristor panel, 6 Nos. of water cooled
encapsulated transformers, each having rating 100 KVA
at 50% duty cycle holder assemblies and automatic cross
wire feeder mechanism. The machine is suitable for connecting
400/440 Volts, 2 line of a 3 phase 50 HZ |
1 |
2500000 |
| 2. |
Weld mesh cutting machine
suitable for 8 mm dia rod x 9' length with 10HP motor
|
1 |
130000 |
| 3. |
Wire cutting and straightening
machine upto 8 mm dia with 7.5 HP motor |
1 |
45000 |
| 4. |
Air compressor with 3
HP motor 200 ltr. tank capacity |
1 |
18000 |
| 5. |
Wolf make portable hand
6" grinder wheel dia |
1 |
4000 |
| 6. |
Wire but welding machine
6 KVA |
1 |
19000 |
| 7. |
Installation and line
fitting. |
- |
40000 |
| 8. |
Step down transformer
250 KVA |
1 |
240000 |
| 9. |
Furniture and office
equipment |
- |
80000 |
| 10. |
Generator Set |
|
400000 |
|
Total
|
3476000 |
| (iii) Pre-operative
Expenses |
25000 |
| Total
Fixed Capital (i+ii+iii) |
11001000 |
B. Working Capital (per month)
(1) Personnel
| Sl.No. |
Designation |
Nos. |
Salary (Rs.) |
Total
(In Rs.) |
| 1. |
General Manager |
1 |
16000 |
16000 |
| 2. |
Production/ Maintenance
Supervisor |
1 |
12000 |
12000 |
| 3. |
Sales Supervisor |
1 |
10000 |
10000 |
| 4. |
Skilled Workers |
6 |
7000 |
42000 |
| 5. |
Un-skilled Workers |
6 |
4000 |
24000 |
| 6. |
Helpers |
4 |
3000 |
12000 |
| 7. |
Accountant |
1 |
6000 |
6000 |
| 8. |
Clerk/Typist |
1 |
5000 |
5000 |
| 9. |
Peon |
1 |
3000 |
3000 |
| 10. |
Watchman |
2 |
3000 |
6000 |
|
Total
|
136000 |
| Add Perquisites
@ 20% |
27200 |
|
Total
|
163200 |
| (ii) Raw Material
|
(In Rs.) |
| M.S. Wire coil 2 mm to
5.6 mm dia 300 MT @ Rs. 28000 per MT |
8400000
|
| (iii) Utilities |
(In Rs.) |
| 1. Electricity charge
|
50000 |
|
Total
|
50000 |
| (iv) Other Contingent
Expenses |
(In Rs.) |
| 1. Postage, stationery
and other office services |
6000 |
| 2. Consumable stores,
tools, repair and maintenance |
20000 |
| 3. Transport and conveyance
|
30000 |
| 4. Advertisement and
sales promotion |
15000 |
| 5. Wire conversion charge
(drawing) |
40000 |
| 6. Insurance |
2000 |
| 7. Miscellaneous expenses
|
10000 |
|
Total
|
123000 |
| (v) Total Recurring
Expenditure (per month) |
(Rs.) |
| 1. Personnel |
163200 |
| 2. Raw material |
8400000 |
| 3. Utilities |
50000 |
| 4. Other Contingent expenses
|
123000 |
|
Total
|
8736200 |
| Working capital is considered
on an average cycle of 1½ months |
13104300 |
| Hence, Working Capital
|
= 1½ months of
recurring expenses |
C. Total Capital Investment
| (i) Fixed Capital |
11001000 |
| (ii) Working Capital
|
13104300 |
|
Total
|
24105300 |
Financial Analysis
| (1) Cost of Production
(per year) |
(In Rs.) |
| Total recurring expenditure
|
104834400 |
| Depreciation on Building
@ 5% |
375000 |
| Depreciation on Machinery
and equipment @ 10% |
307600 |
| Depreciation on office
equipments @ 25% |
20000 |
| Interest on total capital
investment |
2892636 |
|
Total
|
108429636 |
| (2) Turnover (per
year) |
(In Rs.) |
| By sale of welded wire
mesh 2-6mm dia of cross and line wire of different size
3384 MT @ Rs. 38000/MT |
128592000 |
| Trade Commission @ 10%
(-) |
12859200 |
| Total |
115732800 |
| (3) Net Profit (per
year) (Before Income Tax) |
| |
|
Turnover– Cost of Production
|
| |
|
Rs. 115732800 – Rs. 108429636
|
| |
= |
7303164 |
| |
|
|
| (4) Net Profit Ratio
|
= |
Net Profit per year ×
100
-------------------- |
| |
|
Turnover per year |
| |
|
|
| |
= |
7303164 × 100
------------------- |
| |
|
115732800 |
| |
|
|
| |
= |
6.31% |
| |
|
|
| (5) Rate of Return |
= |
Net Profit per year ×
100
--------------------------- |
| |
|
Total Investment |
| |
|
|
| |
|
7303164 × 100
------------------- |
| |
|
108429636 |
| |
|
|
| |
= |
30.3% |
(6) Break-even Point
| Fixed Cost (per annum)
|
(In Rs.) |
| 1. Depreciation on building,
machinery equipment and office equipments |
702600 |
| 2. Insurance |
24000 |
| 3. Interest on total
investment |
2892636 |
| 4. 40% of salary and
wages |
783360 |
| 5. 40% of other contingent
expenses excluding insurance |
580800 |
| Total |
4983396 |
| B.E.P |
= |
Fixed Cost × 100
----------------------- |
| |
|
Fixed Cost + Profit |
| |
|
|
| |
= |
4983396 × 100
----------------------- |
| |
|
4983396 +7303164 |
| |
|
|
| |
= |
40.56% |
Addresses of Machinery Supplier
1. M/s. Jaya Hind Sciaky Ltd.
D-1 Block, Plot No. 18/1,
Chinchwad, Pune - 411 019
Phone Nos. 7475579,7475089 (Purchase), 7475088 (Sales)
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
