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Copper Coated M.S. Wire
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Product Code
|
:
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N.A.
|
|
Quality and Standards
|
:
|
As Per Standard Specifications
|
|
Production Capacity
|
:
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480 M.T. (per year)
|
| Uploaded on |
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February 2007 |
Introduction
Copper Coated M.S. Wire is used for Sub-
Area welding process [SA] and Metal Inert Gas [MIG] welding
process. Due to rapid growth of Industrial activities in Large/Medium
and Small Scale Sector, the demand of copper coated M.S. Wire
is in increasing order as the product is consumable.
Market Potential
Due to inherent characteristics of Sub-Area
welding process and Metal Inert gas welding process, these
welding processes are widely used in developed technology.
The product is widely demanded by railways, Ship building,
chemical fertilizer, cement, petrochemical industries. There
is demand in production of water pipe line also. The advantages
of S A AND MIG welding is lesser labour cost, lesser rejection
and perfect welding, hence the market
Basis and Presumptions
1. The project is based on single shift
of 16 hrs per day and 300 working days in a year.
2. The required land and buildings needed
are included in the project cost.
3. Three years required for achieving
full capacity utilization.
4. Labour wages have been considered as
per present market trend.
5. The rate of interest has been considered
as 12% for calculation purpose.
6. The plant and machinery are indigenously
available.
Implementation Schedule
The project implementation will take a
period of one year from the date of approval of the scheme.
Break up of time required in each activity is shown below:
|
Nature of Activities
|
Period in Month
|
|
1.
|
Scheme preparation and approval.
|
1 month
|
|
2.
|
S.S.I. provisional registration.
|
1 month
|
|
3.
|
Financial arrangement.
|
1 month
|
|
4.
|
Placement of order for delivery
of M/C.
|
1 month
|
|
5.
|
Installation of M/C.
|
1 month
|
|
6.
|
Power connection.
|
1 month
|
|
7.
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Trial run.
|
15 days
|
|
8.
|
Permanent registration.
|
1 week
|
|
9.
|
Commencement of production
|
1 month
|
Technical Aspects
Process of Manufacture
Mild steel wire rod of 6 or 8mm dia available
in coil bundle is cleaned by pickling. Pickling process involves
dipping of M.S. Coil first in acid bath followed by dipping
in Alkali Solution and then in water tank. The cleaned wire
rod is drawn on heavy duty drum type wire drawing M/C. After
annealing the drum wire is again drawn up to desired gauge.
The wire is then passed through copper coating tank for coating
of copper layer as per standard requirement.
Pollution Control
The pollution created during the production
of copper coated M.S. Wire. However, the building shed should
be constructed as per parameters laid down for industrial
buildings .
Production Capacity (per annum)
Submerged arc welding rods:
|
Co2 welding rods
|
:
|
480 M.T.
|
|
Value
|
:
|
Rs. 5,43,50,000
|
Quality Control and Standards
The strict quality control is required
for production of copper coated M.S. Wire. The incoming material
should be properly tested as per relevant standard. During
the production stage, dimensional test must be carried out.
Chemical solution of copper coating bath should be checked
at regular intervals. The chemical composition of raw materials
used for SA welding wire is given below:
|
Type
|
Carbon %
|
Silicon %
|
Manganese %
|
Molybdenum %
|
Nickel %
|
|
AS-1
|
0.10
|
0.03
|
0.4 to 0.6
|
-
|
-
|
|
AS-2si
|
0.08 to 0.15
|
0.15 to 0.4
|
0.8 to 1.2
|
-
|
-
|
|
AS-2 m
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0.08 to 0.15
|
0.05 to 0.15
|
0.8 to 1.2
|
0.45 to 0.6
|
-
|
|
AS-3
|
0.8 to 1.2
|
0.05 to 0.25
|
1.3 to 1.7
|
0.45 to 0.6
|
1.8 to 1.
|
For MIG Wire
|
Type
|
Carbon
%
|
Silicon
%
|
Manganese
%
|
Chromium
%
|
Molybdenum
%
|
Aluminium
%
|
|
A-15.
|
0.13
|
0.3 to 0.9
|
0.9 to 1.6
|
-
|
-
|
0.04
|
|
A-16.
|
0.25
|
0.3 to 0.5
|
1.3 to 1.6
|
-
|
-
|
-
|
|
A-18.
|
0.12
|
0.7 to 1.2
|
0.9 to 1.6
|
-
|
-
|
-
|
|
A-30
|
0.12
|
0.2 to 0.9
|
0.4 to 1.6
|
-
|
0.45 to 0.65
|
-
|
|
A-32
|
0.12
|
0.2 to 0.9
|
0.4 to 1.6
|
1.1 to 1.5
|
0.45 to 0.65
|
-
|
|
Sulphur and phosphorous should not
exceed 0.04% in all cases.
|
Financial Aspects
A. Fixed Capital
|
(i) Land and Building
|
|
Total Land 4000 Sq. Mtrs @ Rs. 3500
per Sq. Mtr
|
:
|
Rs. 1,40,00,000
|
|
Value of boundry wall & Covered
Area
Boundry wall, gates and road inside
the factory
Factory shed, raw water system of
bore well, storage and pumping,
DG set room with diesel oil storage
and pumping,
Raw material and finished goods
storage
Laboratory, maintenance room,
Pollution control system building,
Security building and workers room
Office building area for technical,
administration and commercial staff
Total area required 2000 Sq. Mtr
@ Rs. 7000 per Sq. mtr.
Value = Rs. 1,40,00,000
|
:
|
Rs. 1,4 8,00,000
Rs. 8,00,000
|
(ii) Machinery and Equipments
|
Sl. No.
|
Name of Machinery and Equipment
|
Qty.
|
Amount
(In Rs.)
|
|
1.
|
Non - slip recompilation type heavy
duty Wire drawing M/C having 24" drum dia. Capacity
to draw 6 or 8mm dia.Wire rod With 25 H.P. Motor and
electricals
|
1
|
6,00,000
|
|
2.
|
Heavy duty wire drawing M/C non-slip
Type 22" dia. Drum with 20 H.P. Motor and electricals
|
1
|
5,00,000
|
|
3.
|
Wire drawing M/C 12" drum dia
cap. To Draw up to 12 SWG, to 18 SWG with 5. H.P. Motor
and electricals
|
4
|
15,00,000
|
|
4.
|
Roller type wire pointing M/C having
cap. 10 mm to 2 mm. With 3 H.P. Motor and electricals
|
1
|
1,00,000
|
|
5.
|
Hand operated roller type wire pointing
M/C 2 mm to 1 mm.
|
1
|
50,000
|
|
6.
|
Butt welding M/C cap. To weld from
6mm to 2 mm wire with electricals
|
1
|
2,00,000
|
|
7.
|
Die - polishing machine with 1 H.P.
Motor 2800 R.P.M. 220 V. and self Containing choke
|
1
|
50,000
|
|
8.
|
(a) Heavy duty reeling machine 0.8
to 1.6 mm with 1 H.P. Motor and electricals
|
1
|
1,00,000
|
|
(b) Heavy duty reeling M/C 1.2 to
5.0 mm with 2 H.P. Motor and electricals
|
1
|
2,00,000
|
|
9.
|
Electrically heated annealing furnace
with Automatic temp. Controller and indicator Rating
20 K.V.A. with chain pulley block.
|
1
|
5,00,000
|
|
10.
|
Water tanks size 1m ×1m ×2m.
of fibre Glass
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1
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40,000
|
|
11.
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Pickling and copper coating bath
1m × 1m ×2m complete with bus bars and electricals
|
3
|
10,00,000
|
|
12.
|
Wire Polishing M/C 5mm. to 0.8 mm.
Cap. With 5 H.P. Motor and electricals
|
1
|
2,00,000
|
|
13.
|
Pay of stand chain pulley block,
hand tools, weighing balance etc., Bore well, water
distribution and storage, DG set, power cables, pollution
control system
|
L.S.
|
20,00,000
|
|
14.
|
Laboratory equipment and chemicals
muffle, Furnace. Hot place, glass apparatus. Test Bench
with sink distilled water unit.
|
L.S.
|
5,00,000
|
|
|
Total
|
|
80,40,000
|
|
15.
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Excise, sales tax, installation
and electrification @ 35% of Cost of Plant and Machinery
(1 to 14)
|
|
28,12,000
|
|
16.
|
Office and laboratory furniture
and Typing machine
|
|
8,00,000
|
|
17.
|
Pre-operative expenses
|
|
5,00,000
|
|
Grand Total (1 to 14 + 15 +
16 + 17)
|
1,21,54,000
|
B. Working Capital
(per month)
(i) Raw Materials
and Consumables
|
Sl. No.
|
Name of Raw Materials
|
Qty.
|
Rate
(In Rs.)
|
Amount
(In Rs.)
|
|
1.
|
EQ. Grade M.S. wire rod 6mm to 8mm
rod
|
41.0 M/T
|
50,000 M/T
|
20,50,000
|
|
2.
|
Copper coating chemicals, Acids,
anodes etc.
|
L.S.
|
-
|
1,00,000
|
|
3.
|
Masonite board spool.
|
800 Nos.
|
40 Each
|
32,000
|
|
Total
|
21,82,000
|
(ii) Staff and Labour (per month)
|
Sl. No.
|
Designation |
No.
|
Salary
(In Rs.)
|
Amount
(In Rs.)
|
|
1.
|
Works Manager
|
1
|
30,000
|
30,000
|
|
2.
|
Production Manager, engineers, production
supervisors
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6
|
LS
|
1,00,000
|
|
3.
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Chemists
|
2
|
|
25,000
|
|
4.
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Skilled Workers
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8
|
|
48,000
|
|
5.
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Semi Skilled/ Unskilled Workers
|
10
|
|
40,000
|
|
6.
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Commercial staff consisting of Sales,
marketing, finance, purchase, Accountants, Stores and
administration
|
10
|
|
1,00,000
|
| 7 |
Peon and laboratory boys
|
4
|
3,000
|
12,000
|
|
8
|
Security Guards
|
4
|
3,000
|
12,000
|
|
Total
|
3,67,000
|
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Perquisites @ 22% of Salary
|
81,000
|
|
Total
|
4,48,000
|
|
(iii) Utilities (per month)
|
(Rs.)
|
|
1.
|
Power
|
1,00,000
|
|
2.
|
Water
|
10,000
|
|
|
Total
|
110,000
|
|
(iv) Other Contingent Expenses
(per month)
|
(Rs.)
|
|
1.
|
Stationery and postage
|
5,000
|
|
2.
|
Publicity and advertisement
|
25,000
|
|
3.
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Insurance
|
22,000
|
|
4.
|
Transportation
|
40,000
|
|
5.
|
Repair and maintenance
|
30,000
|
|
6.
|
Consumables and Chemicals
|
50,000
|
|
7.
|
Misc. expenses
|
50,000
|
|
Total
|
222,000
|
|
(v) Working Capital (per month)
|
(Rs.)
|
|
1.
|
Raw Materials
|
21,82,000
|
|
2.
|
Salary and Wages
|
4,48,000
|
|
3.
|
Utilities
|
1,10,000
|
|
4.
|
Other Expenses
|
2,22,000
|
|
Total
|
29,62,000
|
C. Total Capital Investment
|
1.
|
Fixed Capital
|
Rs. 4,09,54,000
|
|
2.
|
Working Capital for 3 months
|
Rs. 88,86,000
|
|
Total
|
Rs. 498,40,000
|
Financial Analysis
|
(1) Cost of Production (per annum)
|
(Rs.)
|
|
1.
|
Working Capital
|
3,55,44,000
|
|
2.
|
Depreciation on pl. and m/c @ 10%
& civil construction @ 5%
|
19,55,000
|
|
3.
|
Interest on total Capital investment
@ 12%
|
59,80,000
|
|
Total
|
4,34,79,000
|
|
(2) Total Sales (per annum)
|
(Rs.)
|
|
1.
|
Copper coated M.S. SA/MIG. Welding
Rods, @ Rs. 113,229/M.T.
|
480/M.T.
|
5,43,50,000
|
|
(3) Profit Before Tax (per annum)
|
(Rs.)
|
|
1.
|
Total Sales
|
5,43,50,000
|
|
2.
|
Cost of Production
|
4,34,79,000
|
|
Total (i, ii)
|
1,08,71,000
|
|
(4) Profit Ratio
|
|
|
=
|
Profit ×100
----------------------
|
|
|
|
Total Sales
|
|
|
|
|
|
|
=
|
1,08,71,000 ×100
---------------------------
|
|
|
|
5,43,50,000
|
|
|
|
|
|
|
=
|
20%
|
|
(5) % Rate of Return of Capital
|
|
|
=
|
Profit ×100
--------------------------
|
|
|
|
Total Capital investment
|
|
|
|
|
|
|
=
|
1,08,71,000 ×100
---------------------------
|
|
|
|
4,34,79,000
|
|
|
|
|
|
|
=
|
25%
|
(6) Break-even Point
|
Fixed Cost (per annum)
|
(Rs.)
|
|
1.
|
Interest on Total Capital investment
|
59,80,000
|
|
2.
|
Depreciation on Plant and Machinery
& civil construction
|
19,55,000
|
|
3.
|
40% Salary of staff and labour
|
21,50,000
|
|
4.
|
40% of other expenditure
|
15,66,000
|
|
5.
|
Utility consumption @ 40%
|
5,28,000
|
|
Total
|
1,21,79,000
|
|
B.E.P.
|
|
|
|
|
=
|
F.C. ×100
----------------
|
|
|
|
F.C. + Profit
|
|
|
|
|
|
|
=
|
1,21,79,000×100
----------------------
|
|
|
|
1,21,79,000 + 1,08,71,000
|
|
|
|
|
|
|
=
|
8,53,52,500
------------------
|
|
|
|
16,11,525
|
|
|
|
|
|
|
=
|
52.8%
|
Addresses of Machinery and Equipment
Suppliers
1. M/s. Saran Engineering Works
A-147, Ghatkopar,
Industrial Estate,
Mumbai - 400086.
Wire Drawing Copper Coating Rewinding Machinery
2. M/s. Viksa Shahu Udyog
A-8/1, Jhilmil Tahirpur Indl. Area,
G.T. Road,
Shahadra,
Delhi-110032.
Wire Drawing Butt Welding M/C.
3. M/s. Regal Dies
25, Friends Colony,
Indl. Area, Gali No. 2,
G.T. Road,
Shahadra,
Delhi-110032.
Wire Drawing Dies.
4. M/s. Inducto Heat Inducto Therm India
Ltd.
Ambli,
Ahmedabad - 380054.
Annealing Furnace
5. M/s. Graver and Weel India Ltd.
Bharath Agencies
Ahad Missions, 1st Floor,
740, Mount Road,
Madras-600002.
Metal Coating Chemicals.
6. M/s. Meta therm Furnace Pvt. Ltd.
MIDC, Indl. Area,
Balapur Road, Thane-400701.
Annealing Furnace.
Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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