|
Investment Casting
| Product Code |
: |
N.A. |
| Quality and Standards
|
: |
As Per Customers' Specifications
|
| Production Capacity
|
: |
Qty.: 2430 MT (per annum)
Value: Rs. 32,50,00,000 |
| Uploaded on |
: |
February 2007 |
Introduction
Investment Casting is a metal casting
process which employs an expendable pattern and one piece
non metallic mould. This process is also known as Precision
Casting because it eliminates the parting line and reduces
the machining cost. Sometimes, this process is also known
as lost wax method. Although all metals, namely ferrous as
well as non-ferrous can be casted by this process, it is most
suitable for expensive, hard and high strength metals and
alloys, which are difficult to machine. This also includes
Stainless and Tool Steels. Steel, in general, finds extensive
application in each and every sphere of life ranging from
domestic use to industrial use. In this project, the casting
has been worked out on the basis of Stainless Steel Scrap,
which finds tremendous application in Chemical, Pharmaceutical,
Dairy, Power Generation, Aircraft Industries such as Screws,
Fuel Lines, Engine Parts, Heat Exchangers, Turbine Buckets
and Valves. Most of it conforms to austentic, feritic and
martensitic grade followed by Heat Treatment.
Market Potential
The units engaged in the manufacturing
of Chemical, Pharmaceutical, Power Generation, Aircraft Industries
and Dairy Equipment require a number of special castings such
as Stainless Steel Castings in different sizes and shapes.
In addition, the requirement of tool steels has gone on increasing
with the pace of industrial development. The number of units
engaged in the Steel Castings by Investment process are negligible.
A few which are producing their castings by conventional type
of casting process are not of the standards and specifications
with respect to chemical composition of steel. In view of
the above, there is immense scope for setting up of such units
in the Small Scale Sector with induction melting and quality
control facilities due to latest industrial policy declared
by the Government, so as to cater to the needs of various
industries established in the country and overseas.
Basis and Presumptions
1. The scheme has been based and worked
out on three shift basis of 8 hours each and 300 working days
in a year with a 25% idle time left for breakdown, maintenance,
repairs etc. To get production on economic scale, full utilization
of capacity in three shift basis is recommended. Initial target
has been fixed at 24300 MT of casting at 60% capacity utilization
on three shift basis for first year of production.
2. Time period for achieving full capacity
utilization will be 4 years and 60% to 80% of capacity utilization
for 1st, 2nd and 3rd years of production.
3. The Skilled, Semi-skilled and Unskilled
labour will be engaged at market rate.
4. Interest rate for fixed and working
capital is estimated at 12% per annum.
5. Margin Money will be 25% of the total
cost of project .
Implementation Schedule
| Activity |
Period |
| 1) |
Time required for preparation of
Project Report |
4 Weeks |
| 2) |
Selection of Site |
4 Weeks |
| 3) |
Provisional Registration as SSI
Unit |
1 Day |
| 4) |
Availability of Finance/Loan |
Within 3 months of submission of
the Project Report |
| 5) |
Machinery procurement, erection
and commissioning and trial runs |
4 Months |
| 6) |
Recruitment of Labour |
3 Weeks |
| 7) |
Start of Commercial Production |
Within one year |
Technical Aspects
Process of Manufacture
Manufacture of Master Pattern —>Manufacture
of Dies for Wax Pattern —> Preparation of Wax Compound
—> Manufacture of Wax Pattern —> Investment of Wax with
Slurry —> Drying of Shell Thickness —> De-waxing of
Raw Moulds —> Heating and Baking of Shells —> Pouring
of moulds with molten metal —> Casting —> Inspection
—> Despatch
Metal Scrap is melted in induction furnace
and tapped in ladles. Invested moulds are poured with the
molten metal to get the desired castings. Castings are cooled
down and are fettled. The casting is investigated and despatched.
If desired the ferro-alloys are added in the ladle itself
to get desired composition.
Quality Control and Standards
In the present scheme the inclusion of
chemical testing will enable the unit to adopt quality control
measures starting from selection and grading of scrap to conformation
of standards for the final casting. Casting alloys selected
are mainly those conforming to austenitic or nonmagnetic and
austenitic grades like AISI 405, 406, 430, 430F, 466, 403,
410, 414, 416, 420, 440A, 440B, 440C respectively.
Production Capacity
|
Quantity
|
:
|
2430 MT (per year)
|
|
Value
|
:
|
Rs. 32,50,00,000
|
Motive Power
Approximate motive power will be 900 K.W.
per ton of castings manufactured.
Pollution Control
The requirements of Rule 10 of the Air
(Prevention and Control of Pollution) U.T. Rules, 1983 and
Rule 33 of the (Prevention and Control of Pollution) Rule,
1976 are to be observed.
Energy Conservation
There is a scope to conserve the energy
by installing energy conservation equipment, so as to have
minimum heat losses from melting induction furnace. With the
use of energy server power economiser, electrical circuit
and energy efficient right energy circuit neutral lighting,
electrical energy can be conserved.
Financial Aspects
A. Fixed Capital
| (i) Land and Building |
Amount
(In Rs.) |
| Land 1000 M2 @ Rs. 3500/M2 |
35,00,000 |
| Built-up Area 500 M2 @ Rs. 7,500/M2
for offices, store, workers room, security, laboratory,
raw material and finished goods store, pollution control,
cooling tower, DG set and accessories, bore well, soft
water system |
37,50,000 |
| Working Shed 200 M2 @ Rs.
6,000/M2
Boundary wall and gates and roads
= Rs. 8,00,000
|
20,00,000 |
|
Total
|
92,50,000 |
(ii) Machinery and Equipments
| Sl. No. |
Particulars
|
Qty. |
Amount
(In Rs.) |
| a) |
Production Unit
|
| (1) |
1000 kg. 450 KW Medium Frequency
Coreless Melting Induction Furnace alongwith Crucible,
Generator, Hydraulic System and Electrical Control complete
|
1 No. |
75,00,000 |
| 2) |
Pump and piping for pumping Furnace
Oil |
1 No. |
1,50,000 |
| 3) |
Auxiliary Transformer with DG set
along with storage of oil pumping system and piping |
1 No. each |
15,00,000 |
| 4) |
Cooling Tower, along with pumps,
piping etc. |
1 No. |
5,00,000 |
| 5) |
Water Softening Plant, with SS
piping, pumps, storage |
1 No. |
5,00,000 |
| 6) |
20 MHz Oscilloscope |
1 No. |
1,00,000 |
| 7) |
5 Ton capacity Crane |
1 No. |
7,00,000 |
| 8) |
Bore well, water storage and pipe
lines and pump for distribution of water |
1 No. |
7,00,000 |
| 9) |
Ladle Heating Burner with Heating
Pumps etc. |
1 No. |
2,00,000 |
| 10) |
Plate type Heat Exchanger |
1 No. |
2,00,000 |
| 11) |
Mould Coolers |
1 No. |
2,00,000 |
| 12) |
Die Making Machine |
1 No. |
50,000 |
| 13) |
Wax Injection Machine |
1 No. |
1,00,000 |
| 14) |
Air Compressor with 5 H.P. Motor,
with air storage tank and air drying unit with compressed
air piping |
1 No. |
6,00,000 |
| 15) |
Metal Spraying Equipment complete
with accessories |
One Set |
1,00,000 |
| 16) |
Special purpose machine for sprinkling
the wax pattern with key in grey factory (Self Fabricated)
|
1 No. |
50,000 |
| 17) |
Dough Mixer used for preparing
the Investment Slurry |
1 No. |
50,000 |
| 18) |
Electric drying oven with uniform
air circulation with 55 shelves |
1 No. |
1,00,000 |
| 19) |
Core Baking Oven |
1 No. |
50,000 |
| 20) |
Moulding Boxes of assorted sizes
|
L.S. |
1,00,000 |
| 21) |
Misc. equipments e.g weighing Scale
with weights (Platform Type), moulding hand tools, gravity
die mould, motorized grinder, pyrometer, arc welding m/c,
bench drilling m/c, tools, |
L.S. |
4,00,000 |
| 22) |
Transformer |
1 No. |
10,00,000 |
| 23) |
Material Handling Equipment |
1 No. |
2,00,000 |
| 24) |
Testing Equipments e.g. tensile
tester, hardness tester, universal tester, centrifugal
testing, chemical lab testing equipments and chemicals
|
|
5,00,000 |
| 25) |
Pollution Control Equipments |
|
800,000 |
| 26) |
Energy Conservation Equipments
|
|
2,00,000 |
| 27) |
Excise, sales tax electrification
and Installation Charge @ 40% of Cost of all Machinery
and Equipment |
- |
66,20,000 |
|
Total
|
2,31,70,000 |
| Cost of
Moulds/Other Fixtures 10 Nos. of Ladles |
|
4,00,000 |
| Office Equipment
|
- |
10,00,000 |
|
Total
|
2,45,70,000 |
(iii) Pre operative
expenses = Rs. 7,00,000
Total Fixed Capital (I + II + III) |
3,45,20,000 |
B. Working Capital
(per month
(i) Personnel
| Sl. No. |
Designation
|
Salary (Rs.) |
No. |
Amount
(In Rs.) |
| 1) |
Metallurgist/ Foundry Technologist
|
30,000 |
1 |
30,000 |
| 2) |
Production Manager Supervisors,
maintenance engineers and supervisors |
|
|
1,00,000 |
| 3) |
Laboratory incharge and chemists
|
|
4 . |
40,000 |
| 4) |
Skilled Workers |
|
40 |
2,00,000 |
| 5) |
Helpers |
3500 |
50 |
30,000 |
| 6) |
Sales and marketing staff |
|
|
50,000 |
| 7) |
Purchase and Store staff |
|
|
40,000 |
| 8) |
Administrative staff |
|
|
25,000 |
| 9) |
Peon and Watchmen |
|
8 |
24,000 |
|
Total
|
5,39,000 |
| Add Perquisites @ 22%
of Salaries |
1,19,000 |
|
Grand Total
|
6,58,000 |
| (ii) Raw Material
Including Packaging Requirement (per month) |
(Rs.) |
| 1) |
Graded Stainless/Alloy
Steel @ Rs. 80,000/T |
243 MT |
1,94,40,000 |
| 2) |
Wax @ Rs. 40,000/T |
30 MT |
12,00,000 |
| 3) |
Ferro-Alloy |
L.S. |
6,00,000 |
|
Total
|
2,12,40,000 |
| (iii) Utilities
(per month) |
(Rs.) |
| 1) |
Power 162,000 KWH @ Rs. 4 per unit
|
6,48,000 |
| 2) |
Furnace Oil 36 Kilo Litre @ Rs.
20,000 |
7,20,000 |
|
Total
|
13,68,000 |
| (iv) Other Contingent
Expenses (per month) |
(Rs.) |
| 1) |
Foundry Consumables |
|
| |
i) Ramming Mass |
|
| |
ii) Bentonite |
2,00,000 |
| |
iii) Silica/Zircon Films |
|
| |
iv) Foundry Sand, Fluxes, Coats
and Chemicals |
|
| 2) |
Telephone |
15,000 |
| 3) |
Laboratory Consumables |
80,000 |
| 4) |
Repairs and Renewals |
75,000 |
| 5) |
Postage and Stationery |
10,000 |
| 6) |
Advertisement and Publicity, sales
and marketing expenses |
1,50,000 |
| 7) |
Transport Charges |
50,000 |
| 8) |
Insurance |
25,000 |
| 9) |
Miscellaneous |
50,000 |
|
Total
|
6,55,000 |
|
(v)
|
Total Recurring Expenditure (per
month) (i + ii + iii + iv) Rs.
|
2,39,21,000
|
|
(vi)
|
Total Recurring Expenditure (for
3 Months) Rs.
|
7,17,63,000
|
C. Total Capital Investment
| i) |
Total Fixed Capital
|
Rs. 3,45,20,000 |
| ii) |
Total Working Capital
|
Rs. 7,17,63,000 |
|
Total
|
Rs. 10,62,83,000
|
Machinery Utilization
Financial Analysis
| (1) Cost of
Production (per year) |
(Rs.) |
| i) |
Total Recurring Cost |
28,70,52,000 |
| ii) |
Depreciation on Building @ 5% |
2,88,000 |
| iii) |
Depreciation on Machinery and Equipment
@ 10% |
15,67,000 |
| iv) |
Depreciation on Furnace @ 20% |
15,00,000 |
| v) |
Depreciation on Moulds and Fixtures
@ 20% |
80,000 |
| vi) |
Depreciation on Office Equipment
@ 20% |
2,00,000 |
| vii) |
Interest on Total Investment @ 12%
|
1,27,54,000 |
|
Total
|
30,34,41,000 |
|
(2) Turnover (per year)
|
(Rs.)
|
|
Steel Casting @ Rs. 1,33,744 / MT
|
2430 MT
|
32,50,00,000
|
(3) Net Profit (per year) (Before Income
Tax)
Turnover – Cost of Production
= Rs. 32,50,00,000 – Rs. 30,34,41,000
= Rs. 2,15,59,000
|
(4) Net Profit Ratio
|
|
|
|
|
|
Net Profit per year × 100
|
|
|
=
|
——————————
|
|
|
|
Turnover per year
|
|
|
|
|
|
|
|
2,15,59,000 × 100
|
|
|
=
|
—————————
|
|
|
|
32,50,00,000
|
|
|
|
|
|
|
=
|
6.6%
|
|
|
|
(5) Rate of Return
|
|
|
|
|
|
Net Profit per year × 100
|
|
|
=
|
——————————
|
|
|
|
Total Investment
|
|
|
|
|
|
|
|
2,15,59,000 × 100
|
|
|
=
|
—————————
|
|
|
|
10,62,83,000
|
|
|
|
|
|
|
=
|
20.28%
|
(6) Break-even Point
|
Fixed Cost
|
Rs. |
| a) |
Depreciation on Machinery and Equipment,
Tools and Fixtures and Office Equipment, building |
36,35,000 |
| b) |
Interest on Total Investment |
1,27,54,000 |
| c) |
40% of Salary and Wages |
31,58,000 |
| d) |
40% of other Contingent Expenses
|
31,44,000 |
|
Total
|
2,26,91,000 |
|
B.E.P.
|
|
|
|
|
|
Fixed Cost ×100
|
|
|
=
|
————————
|
|
|
|
Fixed Cost + Profit
|
|
|
|
|
|
|
|
2,26,91,000 ×100
|
|
|
=
|
——————————
|
|
|
|
2,26,91,000+ 2,15,59,000
|
|
|
|
|
|
|
=
|
51.27
|
Addresses of Machinery and Equipment
Suppliers
1. M/s. Electrotherm (India) Ltd.
414, MIDC, Phase - II,
Opp. Visol Crossing, Vatva,
Ahmedabad - 382 445.
2. M/s. General Electric Co. of India
Limited
Magnet House, 6,
Chittaranjan Avenue,
Kolkata - 13.
3. M/s. Hindustan Brown Bovery Limited
20, Grashani Road,
Ballard Estate,
Mumbai - 1.
Addresses of Raw Material
(I) Suppliers of Scrap
1. M/s. Metal Scrap Trading Corporation
2. M/s. Mishra Dhatu Nigam.
3. M/s. S.A.I.L.
(II) Ferro-alloys and Other Consumable
Stores
1. M/s. Global Linkers (P) Ltd.
2992, Ajmeri Gate,
Kamala Market,
Delhi - 6.
2. M/s. Ferro-Alloys Corporation
122, Jorbagh, New Delhi and
Tumsar (M.S.)
3. M/s. Chemical and Scientific Corpn.
2133, Tilak Bazar,
Khari Baoli,
Delhi - 6.
4. M/s. Metonim Alloys
3992, Ajmeri Gate,
Delhi - 6.
5. M/s. Nav Bharat Ferro Alloys Ltd.
Erramanjil,
Hyderabad.
(III) Foundry Fluxes and Chemicals
1. M/s. Achme Foundry Flux and Co.
Hadapsar, Pune - 13.
2. M/s. Greaves Ferro Ltd.
Penjugutta,
Hyderabad - 34.
3. M/s. ABC Metallurgicals Pvt. Ltd.
12, Belighuta Road,
Kolkata - 15.
4. M/s. Ferro Alloy Corporation
122, Jorbagh,
New Delhi - 110 003.
5. M/s. Greaves Cotton Co. Ltd.
201, Nirmal Tower,
26, Brasa Khambi Road,
New Delhi.
6. M/s. Bhagwati Silicate and
Chemical Works
Dehradun Road,
Saharanpur (U.P.)
7. M/s. Chemic Industries
Bulandghar Indl. Area,
Gaziabad.
8. M/s. Frontier Chemical Industries
G.T. Road, Shahdara.
9. M/s. N.K. Hookers Ltd.
4, Midland Crescent,
London - KW - 3.
10. M/s. B.S.A. Precision Casting
Foundry, Stanley Road,
Waras, England.
11. M/s. British Information Centre
British High Commissioner,
New Delhi - 110 021.
12. M/s. Ratankar Industries
15, Tatel, Block 10/2,
Erandvana, Karve Road,
Pune - 3.
(IV) For Wax Injection
1. M/s. Spares and Equipment Ltd.
62-64, Milk Street,
Bristol, (England)
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
|
