|
Aluminium Powder
| Product Code |
: |
33590300 |
| Quality and Standards |
: |
IS 438:1972 |
| Uploaded on |
: |
February 2007 |
Introduction
Aluminium powder is a fine granular powder
made from Aluminium. In form of powders, Aluminium is used
for several applications such as manufacture of slurry, explosive
and detonators, thermit process used for manufacture of ferro
alloys and for specialised welding applications such as rails,
pyrotechnic to manufacture crackers, sparkles and other pyrotechnic
products; manufacture of aluminium paste, paints and several
powder components used in automobiles. The most important
property of aluminium powder to undergo a vigorous exothermic
reaction when it gets oxidised finds application in pyrotechnic
process. In foundry, aluminium powder is used as a deoxidant
and exothermic tapping compounds to increase the yield of
casting.
Market Potential
The aluminium powder is a consumable product.
Presently there are four major organised manufacturers of
aluminium powder. They are Metal Powder Company, Thirumangalam,
INDAL, Mumbai, Khosla Metal Powder Company, Pune and Arasan
Aluminium Industries, Sivakasi. In addition, there are a number
of small scale industries located in Karnataka, M.P., Maharashtra,
Gujarat and Delhi with an installed capacity of 1 tonne per
day. In a recent report of DSIR, the total production of aluminium
powder in the country has been estimated at more than 10,000
MT per year. DGTD has estimated the growth of demand between
8 to 10% per annum. In conclusion, it can be said that production
of aluminium powders of various grades and products such as
aluminium paste is well established in the country. The aluminium
powder industry is of a remarkable size. There is a growing
market for export of aluminium powder and paste. Good opportunities
exist in the field of setting up new units in small scale
sectors with proven technology and appropriate quality orientation.
Basis and Presumptions
1. The production target has been assessed
on the basis of 300 working days in a year on three shift
basis, since it is a continuous process and the raw material
is available indigenously. The melting losses have been considered
as 3.5%.
2. The capacity utilisation in the first
year of manufacturing would be around 60% to 70% and full
capacity utilisation would be attained gradually in a phased
manner.
3. The wages are based on local market.
4. The interest rate for working and fixed
capital would be around 12% per annum.
5. The margin money requirements for obtaining
financial assistance would be around 30% of the fixed capital.
Implementation Schedule
The project can be implemented in a period
of 18 to 24 months by performing the various activities in
a systematic manner and simultaneous application of various
common activities.
Technical Aspects
Process of Manufacture
The aluminium powder is manufactured in
several forms such as flake-like particles, granular powder
(atomised aluminium) etc. For the production of aluminium
powder, there are several processes, one can use any of them.
The metal is melted in furnaces and the temperature maintained
is around 720 to 760 deg.C. Atomised Aluminium is produced
by blasting the stream of molten Aluminium into small particles
by air jet. For this purpose, an atomiser is used which consists
of a straight tube with lower end dipped in molten metal and
upper end terminating as a small orifice. A jet of hot air
under pressure is passed through armular opening near the
top which impinges on a stream of molten Aluminium drawn by
suction through the orifice. This leads to the formation of
small particles of Aluminium. These particles are drawn by
suction, through a collecting duct placed above the nozzle
and finally into a cyclone collecting system. The particle
sizes can be controlled by varying nozzle opening and air
pressure etc. The different sizes of Aluminium powders are
segregated by sieving. Then packing is done as per market
requirement for specific quantity.
The Process Flow Chart is as under:
Aluminium Ingots --> Melting -->
Spray Atomisation Collection Chamber --> Dust Collector
--> Coarse Powder Fine Powder --> Sieving --> Packing
--> Despatch
Quality Control and Standards
The powder produced will meet standard
specifications for air atomised powder and by using proper
control equipment consistent quality of the product can be
fully ensured with minimum losses. The quality control standards
as per IS-438-1972 are to be followed.
Pollution Control
This item is not exempted by the Pollution
Control Board. Therefore, a clearance certificate is required
from the Pollution Control Board as per their requirements.
Necessary pollution control measures are to be incorporated
in the control profile.
Energy Conservation
The requirement of energy is given under
the head “Utility”. As manufacture of this product
requires furnace oil, the need for energy conservation is
important. In furnace, for supply of furnace oil, efforts
are to be made for maximum utilisation of energy with respect
to the maximum capacity of furnace and the burners are to
be used of standard quality.
Financial Aspects
A. Fixed Capital
| (i) Land and Building |
(Rs.) |
| Land-1000 Sq. Mtrs @
Rs. 3500 per Sq. Mtr. |
35,00,000 |
Built-up
Area = 700 square meter consisting of Office, factory
shed, diesel generator room, pollution control room, bore
well and water storage and distribution, laboratory, workers
room, security rooms, maintenance room, Store room, raw
material and finished product storage @ Rs. 7000 per sq.
Mtr., Total estimated building area = 700 sq. Mtrs
|
49,00,000 |
| Boundary Wall, Gate,
etc. |
5,00,000 |
|
Total
|
89,00,000 |
(ii) Machinery and Equipment
| S. No |
Description |
(Rs.) |
| 1) |
Oil Fired
Furnace-250 kg. |
1 No. |
5,00,000
|
| 2) |
Oil Tank
(12000 ltrs Cap.) with pump, piping |
1 No. |
2,00,000
|
| 3) |
Ball Mill,
Cap.-50 ltrs., driven by 1 H.P. Motor |
1 No. |
1,00,000
|
| 4) |
Air Compressor,
DG set, bore well and water collection, pumping and distribution
and pollution control system |
|
12,00,000
|
| 5) |
Hot Air
Chamber |
|
4,00,000
|
| 6) |
Powder Collecting
Duct complete with suction arrangements etc. |
|
3,00,000
|
| 7) |
Equipment
of packing the final product |
|
3,00,000
|
| 8) |
Weighing
Platform- 500 kg. Cap. |
|
1,00,000
|
| 9) |
Misc. Items
e.g. Thermo-couple, Thread Wire, Testing Equipments |
|
5,00,000
|
| 10) |
Office Furniture
and Equipment |
|
5,00,000
|
| 11) |
Mechanical
and Electrical Installation-@10% of (1 to 10) |
|
4,10,000 |
|
Total
|
45,10,000
|
| (iii) Pre-operative
Expenses |
Rs. 5,00,000
|
| Total Fixed Capital–(i+ii+iii)
|
Rs. 1,39,10,000 |
B. Working Capital (per month)
| (i) |
Personnel |
Salary (In Rs.) |
Nos. |
Amount
(In Rs.) |
| 1) |
Works Manager |
30,000 |
1 No. |
30,000 |
| 2) |
Production Manager, supervisors
process and maintenance, laboratory chemists |
|
10 Nos. |
90,000 |
| 3) |
Purchase, sales, finance
Storekeeper and administrative staff |
|
10 Nos. |
90,000 |
| 4) |
Administrative personnel |
|
2 No. |
15,000 |
| 5) |
Skilled Workers |
5,000 |
8 Nos. |
40,000 |
| 6) |
Semi-skilled Workers |
4,000 |
6 Nos. |
24,000 |
| 7) |
Helpers |
3,000 |
6 Nos. |
18,000 |
| 8) |
Peon |
3000 |
2No. |
6,000 |
| 9) |
Security Guard |
3500 |
4 No. |
14,000 |
| |
Perks to Staff @
22%
|
72,000 |
|
Total
|
3,99,000 |
| (ii) Raw Material
(per month) |
(Rs.) |
| |
Aluminium Ingots 30 M.T.
@ Rs. 1,40,000 per M.T. |
42,00,000 |
|
Total
|
42,00,000 |
| (iii) Utilities
(per month) |
(Rs.) |
| 1) |
Power-2000 Units @ Rs.
4.0 |
80,000 |
| 2) |
Water |
5,000 |
| 3) |
Furnace Oil-2000 Ltrs.
@ Rs. 18.0 per ltr. |
36,000 |
|
Total
|
1,21,000 |
| (iv) Other
Contingent Expenses (per month) |
(Rs.) |
| 1) |
Publicity |
30,000 |
| 2) |
Postage and Stationery |
5,000 |
| 3) |
Telephone |
10,000 |
| 4) |
Travelling and Conveyance
|
1,00,000 |
| 5) |
Consumables like flux
etc. |
24,000 |
| 6) |
Packing Bags etc. |
25,000 |
| 7) |
Repairs and Renewals
|
11,000 |
| 8) |
Insurance |
9,000 |
|
Total
|
2,14,000 |
| (v) Total Recurring Expenditure
(per month) |
(Rs.) |
| i + ii + iii + iv |
49,34,000 |
| (vi) Total Working Capital
(for 3 Months) |
(Rs.) |
| Total Recurring Expenditure x 3 |
1,48,02,000 |
C. Total Capital Investment
| 1) |
Total Fixed Capital |
Rs. 1,39,10,000 |
| 2) |
Working Capital for 3 Months |
Rs. 1,48,02,000 |
|
Total
|
Rs. 2,87,12,000 |
Machinery Utilization
Machine shall be utilised at full capacity
utilization.
Financial Analysis
| (1) Cost of
Production (per year) |
(In Rs.) |
| 1) |
Total Recurring Cost i.e. 15,62,550
×12 |
5,92,08,000 |
| 2) |
Depreciation on Building @ 5% |
2,70,000 |
| 3) |
Depreciation on Machinery and Equipments
@ 10% |
3,51,000 |
| 4) |
Depreciation on Furnace @ 20% |
1,00,000 |
| 5) |
Depreciation on Office Equipment
@ 20% |
100,000 |
| 6) |
Interest on Total Investment @ 12%
|
34,45,000 |
|
Total
|
6,34,74,000 |
| (2) Turnover
(per year) |
(Rs.) |
| |
By
selling 343 M.T. of different grades of Aluminium Powder
@ |
Rs.
7,93,24,000 |
| (3) Net Profit
(per year) (Before Income Tax) |
| |
= |
Total Sale (per annum)—Cost
of Production |
| |
= |
Rs. 7,93,24,000 - Rs.
6,34,74,000 |
| |
= |
Rs. 1,58,50,000 |
| (4) Net Profit
Ratio |
| |
|
Net Profit per annum×100
|
| |
=
|
---------------------------- |
| |
|
Turnover per annum |
| |
|
|
| |
|
1,58,50,000 × 100 |
| |
=
|
--------------------- |
| |
|
7,93,24,000 |
| |
|
|
| |
=
|
19.98% |
| (5) Rate of
Return |
| |
|
Net Profit Per Annum×100
|
| |
=
|
---------------------------- |
| |
|
Total Investment |
| |
|
|
| |
|
1,58,50,000×100 |
| |
=
|
-------------------------- |
| |
|
2,87,12,000 |
| |
|
|
| |
=
|
55.2% |
(6) Break-even
Point
| |
Fixed Cost (per annum) |
(Rs.) |
| 1) |
Depreciation on Machinery, equipment
and building |
6,21,000 |
| 2) |
Depreciation on Furnace |
1,00,000 |
| 3) |
Depreciation on Office Equipment |
1,00,000 |
| 4) |
Interest on Total Investment |
34,45,000 |
| 5) |
Insurance |
1,08,000 |
| 6) |
40% of Salary and Wages |
19,15,000 |
| 7) |
40% of Other Contingent Expenses
(Excluding Insurance) |
10,27,000 |
|
Total
|
73,16,000 |
| B.E.P. |
|
|
| |
|
Fixed Cost×100 |
| |
= |
------------------ |
| |
|
Fixed Cost + Profit |
| |
|
|
| |
|
73,16,000×100 |
| |
= |
-------------------------------- |
| |
|
73,16,000 + 1,58,50,000 |
| |
|
|
| |
= |
31.58% |
Addresses of Machinery and Equipment
Suppliers
1) M/s. Indian Furnace Co. Ltd. NSE Estate,
Goregaon (East), Mumbai.
2) M/s. Amie Engg. Co. Ltd. B.T. Road,
Kolkata.
3) M/s. G.R. ENGG. Works (P) Ltd. Poonan
Chambers, Dr. Annie Besant Road, Worli, Mumbai.
Addresses of Raw Material Suppliers
1) M/s. Hindustan Aluminium Co. Ltd. Renukoot,
Mirzapur (U.P.).
2) M/s. Machas Aluminium Co. Ltd. Mattur
Danu-636 402.
3) M/s. Indian Aluminium Co. Ltd. Hirakud,
Sambalpur, Orissa.
4) M/s. Bharat Aluminium Co. Ltd. Korba,
Chhattisgarh.
5) M/s. National Aluminium Co. Ltd.
Angul, Orissa.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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