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Aluminium Shots and Knotched Bars
| Product Code |
: |
N.A. |
| Quality and Standards |
: |
IS 1253:1965 |
| Production Capacity |
: |
120 MT/Yr/Shift |
| Uploaded on |
: |
February 2007 |
Introduction
Aluminium shots and knotch bars are used
as deoxidiser in steel plants. The deoxidisers are of two
types: (i) Aluminium (ii) Ferrosilicon. Aluminium has certain
advantages over the Ferrosilicon, as it is cheaper and can
be easily made in the form of shots or ingot. Aluminium shots
have the comparative advantage i.e. they offer greater surface
area in better contact and mixing.
Market Potential
The demand for product is mainly from
steel making plants like Durgapur, Bhilai, Rourkela, Salem
and small plants having induction furnaces. The demand per
annum as presumed is over 1500 M.T. for Aluminium shots. There
are units manufacturing this product in Orissa and West Bengal.
In Rajasthan a unit can be set up to cater to the needs of
the State and neighbouring States for small/mini steel plants.
Basis and Presumptions
1. The production target has been assessed
on the basis of 300 days in a year on single shift basis.
2. The melting losses have been considered
as 3.5%.
3. The capacity utilization in the 1st
year could be around 60 to 70% of the installed capacity.
4. The wages and labour are based on local
markets and State Wages Act.
5. The interest rate for working and fixed
capital would be 18% per annum.
Implementation Schedule
The product unit can be set and implemented
in a period of one year by performing various activities in
a systematic manner and simultaneous application of various
common activities.
Technical Aspects
Process of Manufacture
The basic steps involved in the manufacture
of Aluminium shots and knotched bars are as follows:
| (i) Melting |
(ii) Casting |
| (iii) Grading and |
(iv) Testing. |
Melting
Commercial grade Aluminium of 99% purity
is suitable for manufacture of shots and knotch bars. The
scrap should be properly segregated and subjected to magnetic
separation to avoid Iron contamination. Melting is carried
out in graphite crucibles in pit type furnace. Aluminium scrap
and ingots should be preheated to drive out by using oil or
moisture before introducing into molten metal. The melting
is carried out under protective cover flux to avoid excessive
melting bases.
Casting
Aluminium shots are made by passing molten
Aluminium at a correct temperature through a refractory coated
vibratory sieve. The metal beneath the sieve is collected
in a water tank with an arrangement for continuous circulation
of water.
Grading and
Testing
The shots so obtained from the water tank
are graded and oversized shots are sent for remelting. Samples
from a representative lot are sent for chemical analysis.
The material conforming to the standards is weighed and packed.
Quality Control and Standards
Aluminium Knotch Bars and Shots used for
deoxidation of steel should conform to IS:1253:1965.
Motive Power
Approximate motive power requirement is
about 2 KW.
1. The unit should be selected away from
locality.
2. Exhaust pipe should be adjusted to avert the pollution
control inside the factory.
3. Tree and plants are kept for clearing the polluted air.
Energy Conservation
Suitable measures should be taken to minimise
power consumption.
Financial Aspects
A. Fixed Capital
| (i) Land and Building (Rented) covered
area 50 ×50 sq. ft. |
Rs. 5,000 |
(ii) Machinery and Equipments
| Sl. No. |
Description |
Qty. |
Amount (In Rs.) |
| 1. |
Coke Fired Pit Furnace
to accommodate crucible of 40 kg capacity of Aluminium
with Blower/ Motor 5 H.P. and accessories |
4 Nos. |
60,000 |
| 2. |
Vibratory refractory
sieve with driving gear and Motor 2 H.P. |
1 No. |
20,000 |
| 3. |
Water Tank with connection
for cold water circulation Motor and Pump 1 H.P. |
1 No. |
5,000 |
| 4. |
Electric Hoist of 1 Ton
capacity |
1 No. |
20,000 |
| 5. |
Platform Type weighing
Machine 500 kg capacity. |
1 No. |
15,000 |
| 6. |
Testing Equipment |
L.S. |
50,000 |
| 7. |
Exhaust arrangements
for Pollution Control |
L.S. |
10,000 |
| 8. |
Electrical and Mechanical
Installation |
L.S. |
20,000 |
| 9. |
Cost of Moulds, Fixture
hand tools, ladle, Ladle holder etc. |
L.S. |
20,000 |
| 10. |
Office furniture and
Equipments |
L.S. |
20,000 |
| 11. |
Pre-operative expenses |
L.S. |
10,000 |
|
Total
|
2,50,000 |
B. Working Capital (per month)
| |
(i) Administrative/Supervisory/Technical
|
|
(Rs.) |
| 1. |
Manager |
1 |
5000 |
| 2. |
Supervisor/Melter |
1 |
4000 |
| 3. |
Chemist |
1 |
3000 |
| 4. |
Clerk/Typist |
1 |
2000 |
| 5. |
Skilled Worker |
1 |
2000 |
| 6. |
Semi skilled/Unskilled Workers @
Rs.1500 each |
4 |
6000 |
| |
Total
|
|
22,000 |
| |
Perquisites @ 15%
|
|
3,300 |
|
Total
|
25,300 |
| (ii) Raw Materials (per month)
|
(Rs. In lakh) |
| Commercial grade pure Aluminium scrap
10 MT @ 70 Kg. |
7.0 |
| Fluxes/ Chemicals |
0.10 |
|
Total
|
7.10 |
| (iii) Utilities (per month) |
|
(Rs.) |
| Power |
|
10,000 |
| Fuel Coal 4 Ton @ 8000 Ton |
|
32,000 |
| Water |
L.S. |
2,000 |
|
Total
|
44,000 |
| |
(iv) Other Contingent Expenses
(per month) |
(Rs.) |
| 1) |
Rent |
5,000 |
| 2) |
Postage and Stationery |
500 |
| 3) |
Repair/Maintenance |
500 |
| 4) |
Insurance |
1,000 |
| 5) |
Miscellaneous Expenses |
2,000 |
|
Total
|
9,000 |
| |
(v) Total Recurring Expenses (per
month) |
(Rs.) |
| 1) |
Raw Material |
7,10,000 |
| 2) |
Salary and Wages |
25,300 |
| 3) |
Utilities |
44,000 |
| 4) |
Other Expenses |
9,000 |
|
Total
|
7,88,300 |
| (iv) Total Working Capital for
3 months |
|
| = Rs. 788300 ×3 = |
Rs. 23,64,900 |
|
Say
|
Rs. 23,65,000 |
C. Total Capital Investment
| 1. |
Fixed Capital |
Rs. 2,50,000 |
| 2. |
Working Capital for 3 months |
Rs. 23,65,000 |
|
Total
|
Rs. 26,15,000 |
Financial Analysis
| |
(1) Cost of Production (per year) |
(Rs.) |
| 1. |
Total Recurring Cost |
94,60,000 |
| 2. |
Depreciation on Machinery and Equipments
10% |
18,000 |
| 3. |
Depreciation on Furnace/ Furniture
25% |
15,000 |
| 4. |
Interest on total capital investment
18% |
4,70,700 |
|
Total
|
99,63,700 |
| (2) Return by Sale (per year) |
(Rs.) |
| Aluminium shots and Note bars 119
M.T.C. @ 90 per kg. |
1,07,10,000 |
| Net Profit (Before Income Tax) |
7,46,300 |
| Net Profit on Sale |
= 7% |
| Return on Total Investment |
= 28% |
(3) Break-even Point
|
Fixed Cost |
(Rs.) |
| (i) |
Depreciation on Machinery and Equipment |
18,000 |
| (ii) |
Depreciation on Furnace and Furniture |
15,000 |
| (iii) |
Rent |
60,000 |
| (iv) |
40% of Other Contingent Expenses |
2,54,400 |
| (v) |
Interest on Total Investment |
4,70,700 |
| (vi) |
40% of Salary and Wages |
121440 |
|
Total
|
9,39,540 |
| B.E.P. |
|
|
| |
|
F.C. ×100 |
| |
= |
----------------- |
| |
|
F.C. + Profit |
| |
= |
55.7% |
Addresses of Machinery and Equipment Suppliers
(1) M/s. Wesman Engg. Co.
1/2 llenby Road,
Kolkata-20
(2) M/s. Steelage Engineers
B-30, Industrial Estate,
Rourkela
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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