Asbestos Pressure Pipes and Fittings
| Product Code | 94407 |
| Quality and Standards | IS 1592 : 1988 |
| Production Capacity: Qty. | 6000 MT (per annum) |
| Uploaded on | 3 January 2006 |
Introduction
Asbestos pressure Pipes and Fittings are manufactured out of Chrysotile Asbestos (Long Fibre Asbestos) and ordinary Portland Cement ranges in different length and diameter. Generally these are 4 meter in length and 80 degree and 80mm in diameter and fittings of various designs are 90 degree and above, single equal function and double equal function.
Market Potential
In the light of economic liberalization, all round development is taking place in the country. There is a very good demand of AC pressure pipes and fittings in the Government department and domestic market. These pipes and fittings are extensively used for the drainage of rainwater and irrigation purpose. With the upsurge in the building construction and housing, the demand has further increase. There is good scope for setting up the industry for the manufacture of these products.
Basis and Presumptions
It is considered that the unit will work for 300 days in a year on two shift basis:
- The efficiency of the plant has been considered at 80% of installed capacity. In case of pressure pipe unit, the bottleneck operation in pipe-moulding machines.
- The unit may achieve a production of 60% and 70% in the first and second year of its operation.
- Labour and wages has been taken as per minimum wages prescribed by the authorities or more as per the market trend.
- An average rate of interest is taken @ 12% for the working and fixed capital requirements.
- The promoter is expected to put in 25% margin money.
Implementation Schedule
Activity |
Period |
||
| Starting | Completion | ||
| Survey for collection of date in respect of demand, raw materials, power and fuel,availability of technology, pollution control etc. | 0 | to | 2nd month |
| Arrangement for margin money | 2nd | to | 3rd month |
| Preparation for project document and registration | 2nd | to | 3rd month |
| Financial assistance | 4th | to | 6th month |
| Selection of site and development of land | 4th | to | 6th month |
| Make shifts office | – | to | 7th month |
| Clearance for pollution Control | 3rd | to | 6th month |
| Electricity, Water etc. | 4th | to | 6th month |
| Construction/modification | 7th | to | 10th month |
| Identification/selection of machines | - | to | 5th month |
| Placement of orders (Machines) | - | to | 6th month |
| Transportation and installation of Machines and equipments | 10th | to | 11th month |
| Selection of raw material and placement of orders | - | to | 9th month |
| Receipt of material | 10th | to | 11th month |
| Installation of Laboratory equipments | 9th | to | 10th month |
| Trial production | to | 12th month | |
| Construction/modification | 7th | to | 10th month |
Technical Aspects
Process of Manufacture
Raw Materials
Fire clays of both plastic and non-plastic varieties, refractory grog (broken fire bricks) and other high alumina minerals like kyanite, sillimanite and bauxite are the raw materials for making fire clay bricks and blocks.
Ordinary Portland Cement
Pipes are manufactured on pipe moulding machine and mandrels. The mixture of cement and asbestos is pumped into mandrel which rotates in between two rollers. The feeding of slurry is done by manual operation. After required thickness the pipe is taken out with the help of trolley lined with cloth. In case of pressure pipe, this is again kept on other rollers for giving more strength and kept in shed for 24 hours for setting or hardening and them kept in curing tanks filled with water for 14- 15 days. During the manufacturing process vacuum is created inside the mould so that desire thickness of the mixture of asbestos and cement can be deposited. The water which comes out through the holes of mandrels is recycled. The composition varies with the length of pipe. By and large asbestos to cement ratio is 1:9. However, ratio varies depending upon quality. Imported variety chrysolite is used for the manufacture of A.C. Pressure pipes and fittings. Generally 10-15% of asbestos is used for manufacture of the products. These pipes are 4 meters long with diameter ranging from 80mm to 300mm.
Quality Control and Standards
The products have to be tested according to IS 1582: 1989 issued by Bureau of Indian Standards.
Production Capacity (per annum)
| Quantity | 6, 000 MT. |
| Value | Rs. 3, 37, 18, 500 |
Motive Power 125 HP
Pollution Control
To avoid health hazard to workers due to air borne, asbestos and cement, it is recommended to install dust collecting system and adopt safe work practice. The following are the simple recommendations to control dust in this industry:
- it is recommended to prohibit smoking inside the working place.
- The floor should be well built. The clearing of floors at various places is recommended by water mopping
- A centralized dust collecting system of suitable capacity should be provided with extension of ducts fitted with control valves to the following machines:
i) Fibre opening machine with suitable charging platform hood and water mist spray system.
ii) Turbo mixer with a hood and charging platform.
iii)Pipe cutting machine provided with a hood and spray system. - Carrying of slurry with basket to pipe forming machine should be replaced by a pump and flexible pipe system.
- Workmen working in the area with potential to release asbestos dust should wear mask while working.
- The used bags should be reversed in wet condition in a water tank and rinsed. The water can be used in mixer with the help of pump at frequent intervals. The empty bags free from fibres can be disposed off.
Working hoods with dust cover may be provided for moulding and should be suitably connected with suctions devices.
Financial Aspects
A. Fixed Capital
Land and Building
Particulars |
(Rs.) |
| Land-6.000 sq. mtrs. @ Rs. 4000 per sq. mtrs. | 5000000 |
| Built-up area Office and Stores 100 sq. mtrs: @ 10,000 per sq. mtrs, boundry wall, gates, roads etc. | 1,25,00,000 |
| Shed for Plant 1500 sq. mtr. @ 9,000 per sq. mtrs. | 1,08,00,000 |
| Total | 2,57,00,000 |
Machinery and Equipments
Production unit |
Qty. |
(Rs.) |
| Pipe making machine along with mandrels of 80mm dia and 4 meter long with 30HP motor | INo. | 80,00,000 |
| Vacuum Pump with 30HP motor | INo. | 5,00,000 |
| Mixer with 10 HP motor | 2No. | 8,00,000 |
| Misc. items like pipe racks line etc. | Lot | 5,00,000 |
| Pollution control Equipments like dust collector, asbestos handling and storing equipment, Raw water system, D,G, Set and Misc. utility equipment | - | 30,00,000 |
| Curing tanks size 18' × 16 × 5 @Rs. 1,00,000 each | 10 | 10,00,000 |
| Cost of moulds for pipe of 22 Nos.@ Rs. 2,00,000 each | - | 44,00,000 |
| Installation and electrification charges @ 10% | - | 19,00,000 |
| Cost of fittings | - | 10,00,000 |
| Office furniture and equipment | - | 5,00,000 |
| Pre-operative expenses | - | 4,00,000 |
| Total | 2,28,00,000 | |
Total Fixed Capital |
(Rs.) |
| Land and Building | 2,57,00,000 |
| Machinery and Equipments | 2,28,00,000 |
| Total | 4,85,00,000 |
Working Capital (per month)
( i ) Staff and Labour (per month)
Designation |
Nos. |
Salary / (Rs.) |
Total (Rs.) |
| Technical Manager and marketing and sales team | 3 | 50,000 | 50,000 |
| Supervisor | 1 | 10,000 | 10,000 |
| Accountant cum cashier and finance professional | 3 | 40,000 | |
| Skilled workers | 10 | 5,000 | 50,000 |
| Moulders | 5 | 5000 | 25,000 |
| Un-skilled workers | 10 | 3500 | 35,000 |
| Clerk cum Typist | 2 | 5,000 | 10,000 |
| Peon | 2 | 3,000 | 6,000 |
| Watchman | 3 | 4,000 | 12,000 |
| Total | 2,38,000 | ||
| Perquisites @ 20% | 52,000 | ||
| Total | 2,90,000 | ||
(ii) Raw Material (per month) |
(Rs.) |
| Ordinary Portland Cement 230MT @ Rs. 4000 | 9,20,000 |
| Crytobailite Asbestos 25MT @ Rs. 80,000 | 20,00,000 |
| Lubricants | 20,000 |
| Total | 29,40,000 |
(iii) Other Contingent Expenses (per month) |
(Rs.) |
| Postage and Stationery | 5,000 |
| Consumable store | 10,000 |
| Sales and marketing expenses | 1,50,000 |
| Repair and Maintenance | 33,000 |
| Transport Charges | 25,000 |
| Adminstrative expenses | 1,50,000 |
| Insurance | 20,000 |
| Misc. Expenses | 15,000 |
| Total | 4,08,000 |
(iv) Utilities (per month) |
(Rs.) |
| Power 125HP (125 × 75 × 16 × 25) @ Rs. 5 per unit | 1,88,000 |
| Water | 5,000 |
| Total | 1,93,000 |
| Recurring cost (per month) (i+ii+iii+iv) | Rs. 38,31,000 |
| Recurring cost for 3 months Rs. | Rs. 1,14,93,000 |
Total Capital Investment |
|
| Land and Building | Rs. 2,57,00,000 |
| Plant and Machinery | Rs. 2,28,00,000 |
| Working capital for 3 months | Rs. 1,14,93,000 |
| Total | Rs. 5,99,93,000 |
Machinery Utilization
80% utilisation has taken into consideration.
Financial Analysis
Cost of Production (per year) |
(Rs.) |
| Raw material | 3,52,80,000 |
| Staff and labour | 34,80,000 |
| Other Contingent Expenses | 4,08,000 |
| Utilities | 23,16,000 |
| Depreciation on building @ 5% | 11,65,000 |
| Depreciation on machinery @ 10% | 14,60,000 |
| Depreciation on moulds, fixtures and furniture @ 20% | 9,80,000 |
| Interest on total capital investment @ 12% | 71,99,000 |
| Total | 5,22,88,000 |
Annual Turnover |
(Rs.) |
| AC Pipes assorted Sizes (Pressure non pressure) | 6000MT |
| Sale realisation @ 12,400 per MT | 7,44,00,000 |
| Profit and Loss Account 7,44,00,000 - 5,22,88,000 | 2,21,12,000 |
Profit Percentage (per annum)
Profit per year x 100 Total Sale 2,21,12,000 x 100 7,44,00,000 29.72% |
Return on Total Investment
Profit per annum x 100 Total Investment 2,21,12,000 5,99,93,000 36.85% |
Break-even Point |
Value (Rs.) |
| Total depreciation | 36,05,000 |
| 40% of staff and labour | 13,92,600 |
| 40% of other expenditure/consumable | 19,58,000 |
| Insurance | 2,40,000 |
| Interest on total capitale) | 71,99,000 |
| Total | 1,43,94,600 |
B.E.P
Fixed cost x 100 Fixed cost x 100 1,43,94,600 x 100 -------------------------------1,43,94,600 + 2,21,12,000 |
Addresses of Machinery and Equipment suppliers
- M/s. Jaipur Asbestos
New Sanganer Road,
Sodala, Jaipur - M/s. T.S. Enterprises
E-416, Road No. 14,
V. K. I. Area
Jaipur – 302 013 - M/s. Ganesh Engineering Company
Ajmer Road,
Beawar – 305 901
Testing Equipment Suppliers
- M/s. Joshi Scientific Corporation
59, Bapu Gam Road,
Mumbai - M/s. Idento (P) Ltd.
Idento House,
336, Mitn. Road,
Mumbai
Raw Material Suppliers
- M/s. Sneh International
3052, Section – D,
Pocket – 3, Basant Kunj,
New Delhi - M/s. Andhra Pradesh Mining Corpn.
Hyderabad (AP) - M/s. Easthfield Product
5A/6th Floor,
New Excelsion Building,
Bastion Road,
Mumbai – 400 001 - M/s. Dutta Brog. and Co.
N. S. Road,
Kolkata
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
