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Galvanised M.S. Wire
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Product Code
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:
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N.A.
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Quality and Standards
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:
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(i)
(ii)
(iii)
(iv)
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IS 280 : 1977
IS 2629 : 1985
IS 2633 : 1986
IS 6745 : 1972
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Production Capacity
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:
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3480 Ton (per year)
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| Uploaded on |
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February 2007 |
Introduction
Galvanized M.S. Wire has versatile use
in producing different Engineering items such as Building
Hardwares, barbed wires, Screens rivets etc. Special quality
of wire is also required for producing special purpose fastners,
reinforcement wire etc. The Galvanized M.S. Wire is a Mild
Wire which is coated with a layer of Zinc. The coating of
Zinc provides cathodic protection to underneath steel surface.
The Galvanised M.S. Wire offers better surface protection
at lower cost in humid atmosphere.
Market Potential
The Galvanized M.S. Wire has very good
demand for its versatile use in different applications. There
is a large demand for this item from the down stream industries.
With the availability of appropriate technology,
the activity is highly feasible in the small scale sector
and marketing is generally not a problem.
Basis and Presumptions
The profile is drawn on the basis of the
following presumptions:
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(1)
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Working hours/shift
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:
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24 hr. per day
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(2)
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No. of Shifts per day
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:
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Three
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(3)
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No. of working day/year
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:
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300
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(4)
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Total no. of working hours
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:
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7200 hrs.
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(5)
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Working efficiency
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:
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75%
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(6)
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Time period for achieving maximum
capacity utilization
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:
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3 years from the date on which production
will be started
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(7)
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Labour charges
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:
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As per local market.
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(8)
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Rate of Bank Interest
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:
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12% per annum
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The value of machinery and equipment is
estimated on the basis of prevailing market rates. It is expected
that it may take about 8 to 9 months to complete all activities
of the project, till commercial production is achieved. If
the project is available with the promoter, a period of 8/9
months will be needed for site selection, Registration with
DIC as SSI unit, Building construction, selection and purchase
of plant and machinery, Loan sanction from financial Institution,
Erection and commissioning of Project for trial run etc.
Quality Control and Standards
Standardizations parameters are as follows:
1. IS:280-1977 specification for Mild
Steel wire for general purposes.
2. IS:2629-1985, IS:2633-1986, IS:6745-1972
to test the quality of galvanization.
Production Capacity (per year)
The production target of Galvanised M.S.
Wire 1160 MT per year.
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Quantity
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:
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3480 MT
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Value
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:
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20,29,40,000
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Technical Aspects
Process of Manufacture
The production process of Galvanized M.S.
Wire is as follows:
Pickling/Cleaning of the wire rod to remove
surface oxides and impurities —> Mechanical Scraping of
the wire rod surface —> Painting/Welding of Wire Rod —>
Drawing of wire at various stages —> Annealing of wire
if required —> The final drawing in continuous wire drawing
machine —> Pre treatment of M.S. Wire cleaning and degreasing
by special solvent like Sodium hydroxide solution and followed
by pickling —>Galvanizing of M.S. Wire by immersing of
M.S. wire in the molten bath of Zinc followed by water quenching
—> Inspection of Galvanized M.S. Wire —> Binding of
wire coil, packing etc.
Financial Aspects
A. Fixed Capital
(i) Land and Building
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Land Required = 2000 Sq. Mtr.
@ 3500 / sq. Mtr. = Rs. 70, 00,000
Civil and building Construction;
Boundry wall, gates and roads inside
the factory premises
Lump sum cost = Rs. 8,00,000
Building for factory, raw material
and finished store, raw water system and bore well,
DG set room, pollution control system room/ area, maintenance
room, laboratory room, consumable stores, security room,
workers room, offices for management, technical, commercial,
financial and accounts and administrative staff
1200 Sq. mtr @ Rs. 7000/ sq. Mtr
Value = Rs. 84,00,000
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Rs. 1,62,00,000
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(ii) Machinery and Equipments
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Sl. No.
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Name of Machinery
and Equipment |
Qty.
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Amount
(In Rs.)
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1.
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Heavy Duty Wire Drawing Bull Block
intake capacity upto 10 mm of M.S. Wire rod with 660
mm Capstan and 40 HP motor complete with reduction gear
box etc.
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1 No.
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8,00,000
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2.
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Electric Motor 40 HP Sliping type
for the above complete with Switch gear Control panel,
etc.
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1 set
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4,00,000
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3.
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Set of continuous Wire Drawing Machine
Intake capacity for 6 mm of M.S. Wire with 550 mm Capstan
and 25 H.P. Motor complete with reduction gear Box etc.
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4 sets
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16,00,000
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4.
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Set of Electric Motor of 25 HP for
the above complete with Control Panel etc.
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4 sets
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10,00,000
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5.
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Mechanical Desealer cap. Up to 10
mm of Wire rod complete with reduction gears Take off
Drum and 10 HP motor and Electrical
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1 No.
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1,50,000
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6.
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Wire pointing Machine with electric
motor of 3 HP
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1 No.
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1,00,000
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7.
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Wire Butt Welding Machine suitable
to weld M.S. Wire up to 10 mm
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1 No.
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50,000
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8.
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Electric Furnace Bell type for Annealing
of Wire Coil rating 20 KW
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1 No.
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5,00,000
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9.
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Hot Diping galvanizing unit consist
of Pickling, Washing Flux Tank, Diesel Furnace, Zinc
Bath, Extraction unit and Pot
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L.S.
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15,00,000
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10.
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Electric Hoist of 1 ton capacity,
DG set with accessories like oil tank, chimney etc.,
bore well water storage and distribution sytem, pollution
control system
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-
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20,00,000
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Testing Equipment
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11.
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Wire Testing Machine cap. 2 ton
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L.S.
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3,00,000
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12.
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Equipment for coating test
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L.S.
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1,00,000
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13.
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Gauges for Dimensional measurement
of wire
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L.S.
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50,000
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14.
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Excise, sales tax, electrification
and installation @ 40 % of cost of Machinery and equipment
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-
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34,20,000
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15.
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Cost of Dies of various sizes
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-
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3,00,000
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16.
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Office equipment and furniture
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-
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7,00,000
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17.
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Pre-operative Expenses
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-
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3,00,000
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Total
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1,32,70,000
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B. Working Capital (per month)
(i) Staff and Labour
Administrative
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Sl. No.
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Administrative Staff |
No.
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Salary
(In Rs.)
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Amount
(In Rs.)
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1.
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General Manager
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1
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25,000
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25,000
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2.
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Sales and marketing personnel
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4
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40,000
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3.
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Purchase and other commercial staff
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2
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15,000
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4.
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Finance and accounts staff
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3
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20,000
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5.
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Peon/Watchman
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8
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3000
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24,000
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Workshop Staff
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1.
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Production manager, shift supervisors,
maintenance staff, laboratory chemists
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1,50,000
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2.
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Skilled Workers
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30
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5,000
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1,50,000
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3.
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Semi skilled workers Helpers
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15
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3,000
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45,000
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Total salary and
wages
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4,69,000
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Add perquisites @ 22% / annum
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1,03,000
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Total
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5,72,000
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(ii) Raw Material
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Sl. No.
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Particulars
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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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Mild Steel Wire rod of 8, 9 and
10 mm Dia.
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300 ton
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36,000 per ton
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1,08,00,000
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2.
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Zinc Ingot
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15 ton
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1,65,000 ton
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24,75,000
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3.
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Acid Fluxes and other additives
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L.S.
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-
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4,00,000
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Total
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1,36,75,000
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(iii) Utilities
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(Rs.)
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1)
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Power
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L.S.
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100,000
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2)
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Water
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L.S.
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5,000
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3)
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Fuel
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L.S.
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1,50,000
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Total
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2,55,000
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(iv) Other Contingent Expenses
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Rs.
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1.
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Postage and Stationery
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5,000
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2
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Telephone and communications
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15,000
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3.
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Consumable Store
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15,000
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4.
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Repair and Maintenance
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57,000
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5.
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Transport charges
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20,000
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6.
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Advertisement and Publicity, sales
and marketing expenses
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2,00,000
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7.
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Insurance
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19,000
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8.
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Miscellaneous Expenses
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20,000
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Total
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3,51,000
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(v) Working Capital
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(In Rs.)
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1.
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Raw material
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1,36,75,000
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2.
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Salary and Wages
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5,72,000
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3.
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Utilities
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2,55,000
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4.
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Other Contingent Expenses
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3,51,000
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Total
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1,48,53,000
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Working Capital (for 3 months)
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Rs. 4,45,59,000
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C. Total Capital Investment
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(i)
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Fixed Capital
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Rs. 2,94,70,000
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(ii)
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Working Capital
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Rs. 4,45,59,000
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Total
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Rs. 7,40,29,000
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Financial Analysis
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(1) Cost of Production (per year)
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Rs.
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(1)
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Total Recurring Cost
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17,82,36,000
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(2)
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Depreciation on Machinery and Equipment
@ 10%
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11,32,000
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(3)
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Depreciation on furnace, testing
equipment and office equipment @ 20%
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3,30,000
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(4)
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Depreciation on civil construction
@ 05%
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4,60,000
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(5)
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Depreciation on Dies @ 25%
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75,000
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(6)
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Interest on total capital investment
@ 12%
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88,83,000
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Total
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18,91,16,000
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(2) Turnover (per year)
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Sl. No.
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Items
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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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Galvanised M.S. Wire
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3480 ton
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57.62/ ton
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20,05,40,000
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2.
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Scrap Wire
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120 ton
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20000 / ton
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24,00,000
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Total
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20,29,40,000
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(3) Net Profit (per year)
Rs. 20,29,40,000 - Rs. 18,91,16,000 =
1,38,24,000
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(4) Net Profit Ratio
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Net Profit per year ×100
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=
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——————————
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Turnover per year
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1,38,24,000 ×100
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=
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—————————
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20,29,40,000
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=
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6.8%
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(5) Rate of Return
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Net Profit per year ×100
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=
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——————————
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Total Investment
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1,38,24,000 ×100
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=
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————————
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7,40,29,000
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=
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18.7%
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(6) Break-even Point
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Rs.
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1)
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Total Depreciation
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19,97,000
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2)
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Interest on total Capital Investment
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88,83,000
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3)
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40% of Salary and Wages
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27,45,000
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4)
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40% of other contingent expenses
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16,85,000
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Total
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1,53,10,000
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B.E.P
|
|
|
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Fixed Cost ×100
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=
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——————————
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Fixed Cost + Profit
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1,53,10,000 ×100
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=
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—————————
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1,53,10,000 + 1,38,24,000
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|
|
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=
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52.55%
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Addresses of Machinery and Equipment
Suppliers
1. M/s. Associated Machinery Mfg. Pvt.
Ltd.
Bulandshahar Road, Industrial
Area, Ghaziabad.
2. M/s. C.S. Wire Pvt. Ltd.
90-B, IDA., Jeedi Matha,
Hyderabad.
3. M/s. Wire Machinery Mfg. Corporation
7 A, Ventinard Road,
Kolkata.
4. M/s. Refrigeration and Machinery Corporation
Rajendra Prasad Road,
Mumbai - 400080.
5. M/s. Design Engineering Co.
Wadala,
Mumbai - 400431.
6. M/s. Wesman Engineering Co. Pvt. Ltd.
346, Pantheen Road,
Chennai.
7. M/s. Batliboi and Co.
R.P. Road,
Secunderabad.
8. M/s. United Agro Engineering Co.
R.P. Road,
Secunderabad.
Addresses of Raw Material Suppliers
(i) M/s. Steel Authority of India Ltd.
(ii) M/s. Tata Iron and Steel Co. Ltd.
(iii) M/s. Hindustan Zinc Ltd.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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