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Copper Powder
| Product Code |
: |
333906004 |
| Quality and Standards |
: |
IS 440:1964, IS 261:1966, IS 5644:1985,
IS 7438:1985 |
| Uploaded on |
: |
February 2007 |
Introduction
Copper Powder is the basic raw material
for many of the sintered products. These products find their
uses in aircrafts, space crafts, parts for guns, porous metal
bearings, filter gas diffusers, welding rods, bimetallic strips
and electrical parts. The usage of copper powder has increased
manifold by virtue of its physical properties, long life high
scrap value and wide range of uses. Next to iron and steel,
it is widely used in the market.
Market Potential
The indigenous production of copper powder
is only around 7000 tonnes per annum as against an estimated
demand of about 15000 tonnes per annum. This itself shows
the huge demand for the product in India. Since there are
only a few small scale manufacturing units scattered over
the country, the market potential for the product is very
large.
Basis and Presumptions
The unit is expected to work for 24 hours
a day on three shifts basis and 300 days in a year and the
details are worked out accordingly.
The labour wages, cost of raw material,
cost of machinery are based on local market.
Interest rate for fixed and working capital
is taken @ 12%.
Land and building required for the project
has also been estimated.
Implementation Schedule
The major activities and their implementation
schedule are furnished below. The assessment of the items
required for implementation of the project has been considered
and accounted from the date of sanction of the loan:
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Sl. No.
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Activities
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Period in months
|
|
1.
|
Application to financial institutions,
submission of documents, certificates for loan and other
formalities
|
1
|
|
2.
|
Placement of orders for machinery
and equipments and application for power connection
|
1
|
|
3.
|
Procurement of raw materials
|
1
|
|
4.
|
Clearing machinery, installation,
electrification etc.
|
1
|
|
5.
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Trial and commercial production
|
1
|
|
Total
|
5
|
Technical Aspects
Process of Manufacture
Even though there are different processes
of manufacture like mechanical pulverisation and chemical
reduction, the chemical reduction process of manufacture entails
nonpollution hazards and higher purity of the product. If
the ordinary process of electrolytic copper refusing is modified,
the copper is deposited on electrodes as a fine powder. By
suitable control over the operating conditions, a specific
particle size and particle size distribution can be obtained.
Electrolysis takes place in a series of
glass lined special vessels having about two cathodes and
three anodes per vessel. The size of vessel is about 2.5 ft
× 2.5 ft × 2.5 ft deep. The cathodes are made
of aluminium sheets and anodes are of copper. The distance
between the electrodes is two inches. Sometimes, pure lead
is used as anode material. The electrolyte is acid copper
sulphate solution containing about 10 grams per litre of copper
sulphate and 20-50 grams of sulphuric acid. Continuously electrical
energy is supplied and by means of wooden handled aluminum
scraps, the copper powder is detached from the electrodes
and allowed to fall down to the bottom periodically. After
removal, the powder is centrifuged and washed with water until
it is free of copper sulphate. Final drying takes place on
trays in an electrically heated oven having forced air circulation
system at a temperature of 60ºC to 100ºC.
Quality Control and Standards
Product is manufactured as per IS:440-1964,
IS:261-1966, IS: 5644-1985 and IS:7438-1985.
Production Capacity
The production capacity per annum by this
process of manufacture is about 240 M.Tons.
Motive Power
Power requirement is 175 KVA
Pollution Control
Since no pollutants are generated during
and after manufacture, no pollution control methods are required.
Energy Conservation
Energy requirement for this method of
manufacture is about 15% more than the other processes, the
production capacity is higher leading to better profitability.
Financial Aspects
A. Fixed Capital
(i) Land and Building
|
Land 4000 Sq. Mtrs @ Rs. 4000/ per
Sq. Mtr
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Rs. 1,60,00,000
|
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Buildings and civil construction
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|
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Boundry wall, gates, and roads inside
the factory
Factory shed, raw material and finished
store, security cabin, raw water system, laboratory,
maintenance room, general store, D.G. set and diesel
storage workers room, offices for senior staff and commercial
and administrative staff.
|
Rs. 8,00,000
|
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Total area required 600 Sq. Mtrs
@ Rs. 7000 per sq. Mtr
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|
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Total civil construction value
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Rs. 42,00,000
|
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(A) Total land and building cost
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Rs. 2,10,00,000
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(ii) Machinery and Equipments
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Sl. No.
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Item
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Qty. (Nos.)
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Amount
(In Rs.)
|
|
1.
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Acid resistant glass lined vessels-2.5
ft×2.5 ft. ×2.5 ft
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6
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4,00,000
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2.
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Centrifuge
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1
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3,00,000
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3.
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Electrically heated ovens with forced
air circulation system pump-60ºC to 100ºC
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1
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8,00,000
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4.
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Rotary cylindrical screening machine
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1
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3,00,000
|
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5.
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M.AS. water tank, storage bins etc.,
DG set with accessories, bore well,
|
1
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15,00,000
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6.
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Weighing machine capacity 500 kg,
allied tools and equipments
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1
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3,00,000
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7.
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Quality testing laboratory equipments
|
LS
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10,00,000
|
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Total (1 to 7)
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46,00,000
|
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8.
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Excise, sales tax electrification
and installation charges @ 35% of the cost of the machinery
and equipments i.e. (1 to 7)
|
LS
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16,10,000
|
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9.
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Furniture and other office equipments
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LS
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700,000
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Total (1 to 7 + 8 + 9)
|
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69,10,000
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B. Working Capital
(per month)
(i) Raw Materials
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Sl. No.
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Item
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Qty. (Nos.)
|
Rate
(In Rs.)
|
Amount
(In Rs.)
|
|
1.
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Copper Sulphate
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75 MT
|
180 kg.
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1,35,00,000
|
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2.
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Aluminium Sheet and Copper/Pure
lead sheets
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-
|
-
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10,00,000
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3.
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Packing materials
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-
|
-
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3,00,000
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4.
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Other miscellaneous and consumable
stores
|
-
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-
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3,00,000
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Total
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1,51,00,000
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(ii) Salaries and Wages (per month)
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Sl. No.
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Designation
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No.
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Salary
(In Rs.)
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Amount
(In Rs.)
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1.
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Works Manager
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1
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30,000
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30,000
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2.
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Chemist
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4
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8,000
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32,000
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3.
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Production Manager and production
Supervisors
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|
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55,000
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4.
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Skilled Workers
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15
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5000
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75,000
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5.
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Semi-skilled Workers
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15
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4,000
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60,000
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6.
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Helpers
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15
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3,000
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45,000
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7.
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Finance and accountant
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2
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30,000
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8.
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Sales and marketing
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3
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40,000
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9.
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Administration
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3
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25,000
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10.
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Peon and lab boys
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6
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3,000
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18,000
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11.
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Watchman
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4
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3,000
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12,000
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Total
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4,22,000
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Perquisites @ 22%
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93,000
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Total
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5,15,000
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(iii) Other Contingent Expenses (per
month)
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Sl. No.
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Description
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Amount (In Rs.)
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1.
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Insurance
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10,000
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2.
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Power and Water
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3,50,000
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3.
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Postage and Stationery and communications
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30,000
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4.
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Advertisement and Publicity
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25,000
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5.
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Transport Charges
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30,000
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6.
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Sales Expenses
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50,000
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7.
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Miscellaneous Expenses
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30,000
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Total
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525,000
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(iv) Working Capital (per month)
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Sl. No
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Description
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Amount (In Rs.)
|
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1.
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Raw Materials
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1,51,00,000
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2.
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Salaries and Wages
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5,15,000
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3.
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Other Expenses
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5,25,000
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Total
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1,61,40,000
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(v) Working Capital (for
3 Months)
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(Rs.)
|
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Working Capital for 3 months
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4,84,20,000
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C. Total Capital Investment
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a.
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Fixed Capital
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Rs. 2,79,10,000
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b.
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Working Capital for 3 months
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Rs. 4,84,20,000
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Total
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Rs. 7,63,30,000
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Financial Analysis
(1) Cost of
Production (per annum)
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Sl. No.
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Item
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Amount (In Rs.)
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a.
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Recurring Expenses
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19,36,80,000
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b.
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Depreciation on Machinery @10%
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6,21,000
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c.
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Depreciation on Office Equipments,@
20%
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1,40,000
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d.
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Interest on Capital Investment @
12%
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91,59,000
|
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e.
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Depreciation civil construction
@ 5%
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2,50,000
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Total
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20,38,50,000
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(2) Total Sales (per annum)
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(Rs.)
|
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By sale of 360 M.Tons of Copper
Powder @ Rs.623/ kg.
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22,42,35,000
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(3) Profitability (per annum)
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(Rs.)
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22,42,35,000 - 20,38,50,000 =
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2,03,85,000
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(4) Net Profit Ratio
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2,03,85,000×100
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=
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---------------------
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2,24,235,000
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=
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9.09%
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(5) Rate of Return
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2,03,85,000×100
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=
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-----------------
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7,63,30,000
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=
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26.7%
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(6) Break-even Point
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Fixed Cost (per annum)
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(Rs.)
|
|
1.
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Interest on Capital Investment
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91,59,000
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2.
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Total Depreciation
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10,11,000
|
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3.
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40% of Salaries and Wages
|
24,72,000
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4.
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40% of other expenses
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25,20,000
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Total
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1,51,62,000
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B.E.P
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|
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Fixed Cost ×100
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|
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=
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---------------------
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Fixed Cost + Profit
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1,51,62,000 ×100
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|
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=
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---------------------
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1,51,62,000 + 2,03,85,000
|
|
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=
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42.6%
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Addresses of Machinery and Equipment Suppliers
1. M/s. Batliboi and Co.
261, R.N. Mukherjee Road,
Kolkata-1
2. M/s. Rank and Company
A-95/13, Wazirpur Industrial
Estate,
Delhi
3. M/s. Gujarat Machinery Mfg. Ltd.
34, Churchgate Chambers,
Veer Nariman Road,
Mumbai-23
4. M/s. Bhuwaneswari Co.
4-3-313, Rashtrapati Road,
Secunderabad (A.P.)
Addresses of Raw Material Suppliers
1. M/s. R.N Shaw's Sons
27/3, Shakti Nagar,
Delhi-110007
2. M/s. Dharinsi Morarji Chemical Co.
Ltd.
317-21, Prospects Chambers,
Dr. R.N. Road, Fort,
Mumbai
3. M/s. DCM Chemical Works
P.Box No.1211,
Najafgarh Road,
New Delhi
4. M/s. Industrial Chemical Works
23, Filter Bed Road,
Vellore-632001
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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