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Copper Strips
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Product Code
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N.A.
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Quality and Standards
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As per BIS and Customers' Specifications
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Uploaded on
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February 2007
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Introduction
Copper Strips and DPC/DCC strips are used
in the Electrical Industries, Electroplating plants, Motors,
Generators, Transformers, and Household Electrical Appliances
due to its high conductivity which can not be replaced by
any other non-ferrous material like copper because of good
mechanical properties viz, good Malleability and formability,
can be easily fabricated. Besides, it can also be easily welded
and soldered.
Market Potential
With the growth of industrialization as
well as technological advancement, the demand of copper products
such as wire, strip, flats, both bare and covered is increasing.
Based on this trend of growing demand, there is scope for
setting up SSI unit, in the area.
Basis and Presumptions
1. Working two shifts/day of 8 hrs. each
and 300 days in a year.
2. Capacity utilization - 80%
3. Margin Money - 25%
4. Interest rate - 12% (per annum)
Implementation Schedule
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Activities
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Period
( in Month )
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1.
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Preparation of Project Report, Site
Selection, Provision of SSI registration
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0–1
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2.
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Sanction of term loan
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1–3
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3.
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Purchase of Plant and Machinery
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3–5
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4.
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Erection of Machine and Electrification
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5–6
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5.
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Arrangement of Working Capital
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6–7
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6.
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Purchase of Raw Material
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7–8
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7.
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Selection of Staff and Workers
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8–9
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8.
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Commissioning and Trial Production
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9–11
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9.
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Permanent Registration
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11–12
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10.
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Commercial Production
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12
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Technical Aspects
Process of Manufacture
Copper Strips bare or covered, are basically
manufactured using copper wire rod of required sizes. Wire
rods are converted into strips with the help of cold rolling
mills mounted with rolls of different roll pass design as
per size of the final product required.
DCC/DPC Copper strips are annealed through
Electrical furnace and put into DCC/DPC Machine for covering
with insulating paper or cotton as per requirement.
Quality Control and Standards
Quality of copper strips covered and uncovered
are maintained according to the standards laid down by Bureau
of Indian Standards and as well as customers standards specifications.
Production Capacity
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(a) Quantity
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:
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466 MT
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(b) Value
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:
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Rs.
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Motive Power: 80 Kw
Pollution Control
The unit has to adopt necessary pollution
control measures such as proper height of the work shed with
sufficient ventilation outlets.
Financial Aspects
Fixed Capital
(i) Land and Building:
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Land 1000 Sq. Mtrs & Rs. 4000
/ sq. Mtr
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Rs. 40,00,000
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Civil building and construction
Boundry wall, gates and road = Rs.
600,000
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Factory shed, raw material and finished
goods store, security room, laboratory, DG set room,
bore well and water distribution, maintenance room,
workers room, pollution control, Office and staff rooms
Total area = 600 Sq. mtr @ 6000 Sq. Mtr. = 36,00,000
Total civil cost
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Rs. 42,00,000
Rs. 84,00,000 |
(ii) Machinery and Equipments
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Sl. No.
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Description
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Imp./ Ind.
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Qty.
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Amount
(In Rs.)
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1.
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Four block vertical wire drawing
machine complete with 24 H.P. Motor and accessories
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Ind.
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1
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6,00,000
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2.
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Horizontal wire drawing Machine
24" complete with 20 H.P. Motor and accessories
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Ind.
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1
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6,00,000
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3.
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Cold Rolling Machine complete with
15 H.P.
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Ind.
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1
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8,00,000
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4.
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Cold Rolling Machine complete with
7.5 H.P. Motor and Accessories
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Ind.
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1
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2,00,000
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5.
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Pointing Machine complete with 2
H.P. Motor
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Ind.
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1
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50,000
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6.
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Die Polishing Machine, complete
with 1/2 H.P. Motor
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Ind.
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1
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50,000
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7.
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Butt Welding Machine up to 10 mm.
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Ind
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1
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50,000
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8.
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Rough Cold Rolling Machine with
10 H.P. Motor with accessories
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Ind
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1
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1,00,000
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9.
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DPC/DCC Machine for strips with
2 H.P. Motor
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Ind.
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1
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2,00,000
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10.
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Electric operated 24 KW annealing
furnace, complete with Control Panel
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Ind.
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1
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5,00,000
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11.
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Pickling/rinsing/ washing unit,
bore well and raw water system, DG. set with accessories,
Pollution control system, Laboratory
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LS
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-
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20,00,000
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Total
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51,50,000
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12.
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Excise, sales tax electrification
and installation @ 35% of total
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18,00,000
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13.
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Cost of Dies/Fixtures and others
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-
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5,00,000
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14.
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Cost of office furniture and equipments
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-
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7,00,000
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15.
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Pre-operative Expenses
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-
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3,00,000
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16.
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Electrical connection security deposits
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-
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3,00,000
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G. Total
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87,50,000
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B. Working Capital (per month)
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(i) Raw Material
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(Rs.)
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1.
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Copper wire rod 40 MT @ Rs. 200,000
per M.T.
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80,00,000
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2.
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Insulating paper/cotton 0.6 MT @
Rs. 2,25,000
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1,35,000
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Total
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81,35,000
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(ii) Utilities
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(Rs.)
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1.
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Power 24960 KWH @ Rs. 4.0 per unit
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1,00,000
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2.
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Water (L.S)
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5000
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3.
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Acid/Lime other chemicals (L.S)
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10,000
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Total
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1,15,000
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(iii) Personnel
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Nos.
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(Rs.)
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1.
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General Manager
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1
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30,000
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2.
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Production Manager, Shift supervisors,
laboratory chemists, maintenance engineer and staff
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1
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1,50,000
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3.
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Sales and marketing staff, Accounts
and finance staff, Administrative staff
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1
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60,000
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4.
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Peons
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3
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9,000
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5.
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Watchman
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3
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9,000
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6.
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Skilled Worker
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12
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48,000
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7.
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Semi Skilled Worker
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12
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36,000
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Total
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3,42,000
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Add perquisites @ 22% of Salary
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75,000
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Total
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4,17,000
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(iv) Other Contingent Expenses
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(Rs.)
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1.
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Insurance
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11,000
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2.
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Telephone and communications
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10,000
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3.
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Advertisement and Publicity
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30,000
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4.
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Postage and Stationery
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5,000
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5.
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Transport charges
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10,000
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6.
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Repair and Maintenance
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25,000
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7.
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Sales and marketing, traveling and
miscellaneous expenses
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1,00,000
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Total
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1,91,000
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Working Capital (i + ii + iii
+ iv)
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88,58,000
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C. Total Capital Investment
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(a) Fixed Capital
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Rs . 1,71,50,000
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(b) Working Capital (3 months)
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Rs. 2,65,74,000
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Total
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Rs. 4,37,24,000
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Machinery Utilization
With operation of wire drawing Machine,
cold rolling and Annealing Furnace, the Machinery utilization
can be achieved to the extent of 80% and considered feasible
for achievement of the project target capacity.
Financial Analysis
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(1) Cost of Production (per
year)
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(Rs.)
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a)
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Recurring cost
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10,62,96,000
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b)
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Depreciation on Machinery @ 10%
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6,28,000
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c)
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Depreciation on Furnace and dies
@ 25%
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2,50,000
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d)
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Depreciation on civil construction
@ 5%
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2,10,000
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e)
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Depreciation on furniture/office
equipment @ 20%
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1,40,000
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f)
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Interest on Investment @ 12%
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52,47,000
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Total
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11,27,71,000
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(2) Turnover (per year)
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(Rs.)
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(a)
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Copper Strips, DCC/ -DPC Strips
466 M.T. @ Rs. 271.03/kg
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12,63,03,000
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(b)
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By Sale of Scrap, -9.6 M.T. @ Rs.
140/kg
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13,44,000
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Total
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12,76,47,000
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| (3) Net Profit/year
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= |
Rs. 12,76,47,000 – Rs.11,27,71,000
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= |
Rs.1,48,76,000 |
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(4) Net Profit Ratio
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Net Profit × 100
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= |
---------------------
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Turnover
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1,48,76,000 × 100
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= |
-------------------
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4,37,24,000
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= |
34.02%
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(5) Rate of Return
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Net Profit × 100
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= |
-------------------
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Total Investment
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1,48,76 × 100
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= |
--------------------
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4,37,24,000
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= |
34.02%
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(6) Break-even Point
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(i) Fixed Cost
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(Rs.)
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1.
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Total Depreciation
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12,28,000
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2.
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Interest on Investment
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52,47,000
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4.
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40% of Salary and Wages
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20,02,000
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5.
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40% of other expenses
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9,17,000
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Total
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93,94,000
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| (ii) Net Profit (per year) |
Rs. 1,48,76,000 |
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B.E.P.
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Fixed Cost × 100
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= |
---------------------
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Fixed Cost + Profit
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93,94,000 × 100
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= |
------------------
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93,94,000 + 1,48,76,000
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= |
38.7%
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Addresses of Machinery and Equipment
Suppliers
1. M/s. Develop Engineering Corporation
1/421, Street No. 6,
Friends Colony, Industrial Area,
Shahdara, Delhi, 95.
Wire Drawing Machine
2. M/s. C. S. D. Technologies Pvt.Ltd.
47 A, Ist Class, HAL,
3rd Stage,
Bangalore - 560075.
Cold Rolling Mills
3. M/s. Pioneer Equipment Co. Pvt. Ltd.
432, Padra Road,
Baroda - 5.
Annealing Furnace
Addresses of Raw Material Suppliers
1. M/s. Hindustan Copper Limited.
2. M/s. Alcobax Metals Pvt. Ltd., Jodhpur.
3. M/s. Minerals and Metals
Trading Corporation of India
Bahadur Shah Zafar Marg,
New Delhi-110002.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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