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Brake Drum Casting
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Product Code
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:
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374815003
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Quality and Standards
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:
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As Per Customers Specifications
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| Uploaded on |
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February 2007 |
Introduction
Brake drum castings are made up of S.G.
cast iron which has high strength, ductility, shock and wear
resistance, good castability, excellent machinability and
overall durability of the component.
Market Potential
With the start of the automobile revolution
in the country the brake drum castings are expected to increase
manifold in future. The S.G. brake drum castings are replacing
even forgings. The brake drum casting units have good scope
in small scale industries due to the excellent technical base
available at the small foundry units.
Basis and Presumptions
1. The scheme has been prepared on the
basis of 75% efficiency on two shifts of 8 Hrs each considering
25 working days in a month.
2. The rate of interest in the scheme
has been worked out on the basis of 12% on an average; however
this figure is likely to vary depending on the financial outlay
of the project as well as location of the unit.
3. The costs of machinery and equipment
as indicated are approximate ruling locally at the time of
preparation of the scheme.
4. The rates quoted in respect of salaries
and wages for workers and others are the minimum rates in
the state/neighbouring states.
5. Margin money required is minimum 25%
of the projected investment.
Implementation Schedule
1. Preparation of the Project Report:
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Activity
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Period
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1.
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(a) Calling quotations
(b) Preparation of report
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1 month
2 weeks
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2.
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Provisional registration as SSI
Unit
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2 weeks
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3.
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Financial arrangement
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3 months
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4.
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Purchase and procurement of machinery
and equipments
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3 months
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5.
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Installation of machines and Equipments
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3 months
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6.
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Electrification
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1 month
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7.
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Recruitment of staff and workers
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1 month
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8.
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N.O.C. from Pollution Control Board
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1 month
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Technical Aspects
Process of Manufacture
The scrap and pig-iron in the required
proportion are melted in the electric induction furnace. When
the molten metal attains the pouring temperature, the hot
metal is transferred from furnace to the ladle and then poured
in the mould already prepared and kept ready. After cooling,
the castings are knocked out, fettled, inspected and despatched
to the customer.
Quality Control and Standards
The Brake drum castings are manufactured
under the following Indian specifications:
1. IS-1865-1974 Indian standard specification
for Iron Castings with spheroidal or nodular graphite.
2. IS-5789-1970 Indian standard specification
for S.G. Iron Castings for low temperature use.
3. IS-5788-1970 Indian standard specification
for Iron Castings with spheroidal or nodular graphite for
use at elevated temperatures.
Production Capacity (per annum)
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Quantity
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:
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600 MT
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Value
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:
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Rs.
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Pollution Control
The units manufacturing brake drum foundry
comes under category of Government classification. Hence the
pollution control clearance is a must for these units. The
unit has to take care of all statutory regulations.
Financial Aspects
A. Fixed Capital
(i) Land and Building
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Sl. No.
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Description |
Amount (In Rs.)
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1.
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Land 1 acre
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15,00,000
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2.
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Factory shed, raw material and finished
goods storage, 750 Sq. Mtr.@ Rs. 5000 Per Sq. Mtr.
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37,50,000
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3.
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Office, laboratory, workers room,
Security room, DG set room with diesel storage, pollution
control system area, raw water boring and storage maintenance
room, general store room, area for the commercial and
administrative staff 750 Sq. Mtr @ Rs. 6000 / Sq. Mtr.
Add Rs. 8,00,000 for boundary wall, roads inside the
factory and factory gates.
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53,00,000
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Total
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1,05,50,000
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(ii) Machinery and Equipments
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Sl. No.
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Description
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Qty.
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Rate
(In Rs.)
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Amount
(In Rs.)
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1.
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Air compressor capacity with high
pressure storage tank, air dryer, valves and fittings,
bore well, raw water storage handling and distribution
and pollution control systems
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1
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14,00,000
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2.
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Bench drilling machine 20 mm Cap.
with 1 HP motor and
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1
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20,000
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20,000
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3.
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Crane capacity 3 tonnes with 20
HP
motor
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1
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7,00,000
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7,00,000
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4.
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Double-ended grinder with 2 HP
motor
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2
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25,000
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50,000
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5.
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Drying oven oil fired
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1
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2,00,000
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2,00,000
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6.
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Electricity Transformer 11 KV/440
V/250 KVA
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1
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3,00,000
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3,00,000
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7.
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Generating set with oil storage
tank, pumping etc.
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1
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6,00,000
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6,00,000
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8.
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Hand Trolleys etc.
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LS
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50,000
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9.
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Hardness Tester (Brinell)
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1
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50,000
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50,000
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10.
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Heat Treatment Furnace (2m ×1.5m
×1.5 m) oil fired with 3 HP motor
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1
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4,00,000
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400,000
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11.
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Induction Melting Furnace 150 kg
capacity and office furniture
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2
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10,00,000
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20,00,000
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12.
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Izod / charpy Impact Tester
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1
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1.00,000
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1,00,000
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13.
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Lab. Chemicals and Equipments
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LS
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5,00,000
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14.
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Metallographic Metallurgical Microscope
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1
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50,000
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50,000
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15.
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Moulding Machine with 5 HP motor
(L.S.)
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1
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3,00000
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3,00,000
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16.
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Office equipments, tables, chairs,
fans, typewriters,
almirah etc.
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5,00,000
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17.
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Platform weighing machine 500 kg
capacity (Ind.)
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1
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50,000
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50,000
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18.
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Sand mixer (100 kg cap.) with 5
HP motor
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2
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1,50,000
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3,00,000
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19.
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Sand testing machine
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1
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50,000
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50,000
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20.
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Specimen Polishing machine (Double
dise-type)
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1
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50,000
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50,000
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21.
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Swing frame grinder with 10 HP motor
(LS)
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3
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3,00,000
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9,00,000
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22.
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Tools, Dies and equipments
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3,00,000
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23.
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Weighing scale 500 kg. cap
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2
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50,000
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1,00,000
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24.
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Excise, sales tax, installation
and electrification @ 35% of sum of 1 to 23
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LS
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31,94,000
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Total
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1,21,64,000
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B. Working Capital
(per month)
(i) Raw Material
(per month)
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Sl. No.
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Description |
Qty.
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Rate
(In Rs.)
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Amount
(In Rs.)
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1.
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Ferro-silicon (60%)
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LS
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2,00,000
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2.
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Furnace lining and other refractory
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LS
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2,00,000
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3.
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Graphite
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LS
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50,000
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4.
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Innoculating agents, fluxes bath
conditioners etc.
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LS
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1,00,000
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5.
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M.S. Plate covers for reduction
Ladle 1 tonne
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LS
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1,50,000
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6.
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Mild Steel scrap
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52
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20,000
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10,40,000
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7.
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Sand, Binder and other Moulding
Materials
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LS
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1,00,000
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Total
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18,40,000
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(ii) Salaries and Wages (per month)
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Sl. No.
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Designation |
No.
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Salary (In Rs.)
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Amount (In Rs.)
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1.
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Sales, marketing, purchase and administration
staff
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08
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80,000
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2.
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Production and maintenance engineers
and staff
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3
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45,000
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3.
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Laboratory chemists and Technician
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4
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30,000
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4.
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Skilled Workers
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15
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5,000
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75,000
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5.
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Supervisor
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3
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6,000
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18,000
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6.
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Unskilled workers
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15
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3000
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45,000
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7.
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Works Manager/ metallurgist
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1
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30,000
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30,000
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Total
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3,23,000
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Perquisites @ 22%
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71,000
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Total
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3,94,000
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(iii) Utilities (per month)
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Sl. No.
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Description |
Rate (In Rs.)
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Amount (In Rs.)
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1.
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Electricity and Power
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LS
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3,00,000
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2.
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Funace Oil and Fuel
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LS
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2,00,000
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3.
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Furnace lining Charges
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LS
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40,000
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Total
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5,40,000
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(iv) Other Contingent Expenses (per month)
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Sl. No.
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Description |
Amount (In Rs.)
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1.
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Miscellaneous
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50,000
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2.
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Postage and Stationery
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5,000
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3.
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Repairs and maintenance
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50,000
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4.
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Transportation/Advt.
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50,000
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5.
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Travelling and Conveyance
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2,00,000
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6.
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Water
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5,000
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Total
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3,60,000
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Working Capital per Month : 18,40,000
+ 3,94,000 + 5,40,000 + 3,60,000 = Rs. 31,34,000
(v) Working Capital for 3 Months
= Rs. 31,34,000 ×3 = Rs. 94,02,000
C. Total Capital Investment
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Fixed Capital
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Rs. 2,27,14,000
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Working Capital
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Rs. 94,02,000
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Total
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Rs. 3,21,16,000
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Financial Analysis
(1) Cost of
Production (per annum)
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Sl. No.
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Description |
Amount (Rs.)
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1.
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Depreciation on furnace & office
furniture @ 20%
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4,80,000
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2.
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Depreciation on Machinery and Equipments
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9,46,000
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3.
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Depreciation on civil construction
@ 5%
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4,53,000
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4.
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Depreciation on Tools @ 20%
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60,000
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5.
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Recurring Expenditure
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3,76,08,000
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6.
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Interest on capital investment @
12%
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38,54,000
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Total
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4,34,01,000
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(2) Sales (per annum)
By Sale of 600 M.Ts of S.G. Iron Castings
Value : Rs. 5,15,36,000
By Scrap 30 M. Tonnes of Castings and
Rejects
Value : Rs. 7,85,000
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(3) Profit (per annum)
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(Rs.)
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Sales
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5,23,21,000
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Cost of Production
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4,34,01,000
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Total
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89,20,000
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(4) Profitability Analysis
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a) % of Profit on Sales
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Profit per annum ×100
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=
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-----------------------
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Sales per annum
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87,20,000 ×100
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=
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---------------------
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5,23,21,000
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=
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17.04%
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b) % of Profit on Investment
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Profit per annum ×100
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|
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=
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-----------------------
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Total Capital investment
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89,20,000 ×100
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=
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---------------------
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3,21,16,000
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=
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27.77%
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5. Break-even Point
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(i) Fixed Cost (per annum)
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(Rs.)
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Depreciation
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19,39,000
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Interest on investment
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38,54,000
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40% of salary and wages
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18,91,000
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40% of other expenses and Utilities
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43,20,000
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Total
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1,20,04,000
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(ii) Profit (per annum)
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Rs. 87,20,000
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B.E.P.
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|
|
|
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|
Fixed Cost per annum ×100
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|
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=
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-----------------------
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|
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Fixed cost per annum + profit per
annum
|
|
|
|
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1,20,04,000 ×100
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|
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=
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---------------------
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|
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1,20,04,000 + 89,20,000
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|
|
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=
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57.37%
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Addresses of Machinery and Equipment
Suppliers
1. M/s. Beco Engineering Co.
Agra Road, H.T. Mills Compound,
Vikhroli, Mumbai-400 079.
2. M/s. Brady and Morris Engineering Co.
Limited
12/14, Veer Nariman Road,
Brady House,
Mumbai-400 023.
3. M/s. Commercial Engineering Works
P-17, Benaras Road,
Bamangachi, Salkia,
Howrah - 700 006.
4. M/s. Federal Engineers,
Plot No.: A-81, Road No.: 16-R,
Thana-400 604.
Addresses of Raw Material Suppliers
1. M/s. National Iron Traders
364 Kurichi Pirivu, Coimbatore-23
2. M/s. NR Traders
Pollachi Road, Karumbukadai,
Coimbatore-1
3. M/s. PA Ponnusamy and
Chandran Co.
P.N. Palayam,
Coimbatore-641 020
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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