L.T. Insulators and Electrical Porcelain
| Product Code | 94336 and 94339 |
| Quality and Standards | IS 1445:1997 IS 1283:2976 |
| Uploaded on | June 2007 |
Introduction
Electrical Porcelain and L.T. Insulators are of semi vitreous body. These products are in a position to withstand normal domestic voltage up to 440 volts. Glazed products are made for use in exposed weather and unglazed products are used in dry conditions. The main types of product(s) are: LT insulators, shackle insulators, split insulators, kit-kats, outlet boxes, switch boxes, connectors, plugs, sockets, lamp holders, bushes, cleats, label racks, bobbins etc.
They are used in telephone and power supply to houses and other electric applications like electric iron, toasters, stabilisers, transmission and distribution of power line at low voltage 220-440 volts in the telephone and telegraphic lines.
Market Potential
Due to developmental projects of Govt. of India and States for electrification of rural and urban areas in the country, the demand of these items and products is increasing day by day. The growth rate is anticipated to be around 15% per annum. The porcelain insulators are used in L.T. Electrical energy distribution systems and telegraphic communication system wherein these items are consumed for new erection and replacement by the State Electricity Boards, P&T Department, Railways etc. and private sector companies.
The demand of various types of insulators also exists due to upsurge in the building construction activities by private enterprises, societies and builders. The use of electrical appliances is also increasing. These factors contribute to the increased demand of various types of ceramic insulating material in the domestic market. The industry has successfully tapped export market as well. Hence there is a good scope to set up this industry in the SSI sector.
Basis and Presumptions
By considering that the unit will work on single shift basis for 300 days in a year. However, the firing will carry out continuously on three-shift basis till particular firing cycle is completed in all aspects.
Margin money will vary from 10-25% depending upon the location and scheme adopted by the entrepreneurs. Labour and wages are taken as per the prescribed minimum wages of Govt.
To achieve full plant capacity 1-2 months of production trial is necessary.
The costs of land, construction charges, machinery and equipment, raw materials and consumables, other contingent expenses etc. is taken in the profile as per prices prevailing in the market at the time of preparation.
Operative period of the project is around 10 years considering technology obsolescence rate and period of replacement of loan.
Implementation Schedule
| Activity | Period (in months) | |
| Starting | Completion | |
| Survey for data collection in respect of demand, raw material, power and fuel technology and pollution control etc. | 0 To | 2nd month |
| Arrangement of margin money | 2nd To | 3rd Month |
| Preparation of project document and registration | 2nd To | 3rd Month |
| Arrangement for financial assistance | 4th To | 6th Month |
| Selection of site and development of land | 4th To | 6th Month |
| Make shift office | 7th Month | |
| Clearance for pollution | 3rd | 6th Month |
| Electricity, fuel and water tie-up for availability | 4th To | 6th Month |
| Selection of machine, placement order, construction and installation etc. | 5th To | 10th Month |
| Selection of raw material, placement of orders and receipt of raw materials | 9th To | 10th Month |
| Installation of laboratory | 9th To | 10th Month |
| Trial production | 12th Month | |
Technical Aspects
Process of Manufacture
Main raw materials like china clay, ball clay, quartz, felspar, plastic fire clay are used for the preparation of body. Materials like whiting, barium carbonate, zinc oxide etc. are used for the preparation of glazes. The non-plastic raw materials are ground in ball mill to the fineness of 100-120 number mesh and water is added in desired proportion. China clay and other soft clays with 0- 40% water are blunged in the blunger and sieved through 120 No. mesh and then passed through electromagnet in order to remove the iron particles.
Both slurries are mixed proportionately in the agitator tank. The slurry from the agitator tank is passed through filter press for dewatering to make cakes. L.T. Insulators like pin, shackles etc. are made by pressing or throwing process followed by turning on leather hardening.
For making the electrical pressed porcelain items, the cakes are dried and powdered in a disintegrator. Dry broken green articles are also mixed with this body with approx. 6% water and 3% oil is mixed to form consistent and uniform granules. The prepared mass is again passed through a sieve granulator, so that any lump formed during mixing is broken to form granules.
The mass is then pressed into shapes in a piller press/toggle press fitted with dies of desired shapes. The articles are then dried and finished. The articles are glazed, if required and then fired at the temperature of about 1280 oC in a shuttle kiln. The articles are taken out from the kiln are sorted and packed for selling.
Quality Control and Standards
The BIS has formulated and published IS 1445:1977 and IS 283:1976 for carrying out the various tests and specifications which may be used as basis for quality control.
Production Capacity
| Quantity | : 900 MT |
| Value | : Rs. 1,04,40,000. |
| Motive Power | 85 HP. |
Pollution Control
Cyclonic dust collector to be installed to control the airborne dust during the crushing. The Kiln should conform to the specification to ensure clean operation as per the Pollution Control Act.
Energy Conservation
Industry needs energy conservation in fuel as well as in power consumption. The use of ceramic fibre in the shuttle kiln conserves 20-40% of fuel energy compared to conventional type of D.D. Kiln.
Financial Aspects
A Fixed Capital
Land and Building
Rate (Rs.) |
Value (Rs.) |
|
| Land and Building | ||
| Land 2000 sq. metre | 550 sq. meter | 11,00,000 |
| Building | ||
| Machinery shed-300 sq. metre | 1800 sq. meter | 5,40,000 |
| Kiln shed- 150 sq. metre | 1800 sq. meter | 2,70,000 |
| Raw material shed- 100 sq. metre | 1200 sq. meter | 1,20,000 |
| Finished Goods | ||
| Godown-100 sq. metre | 1800 sq. meter | 1,80,000 |
| Office-60 sq. metre | 2200 sq. meter | 1,32,000 |
| Boundary wall | L.S. | 91,000 |
| Total | 24,33,000 | |
Machinery and Equipments
Particular/items |
Qty. |
Value (Rs.) |
| Ball Mills, size 1800 mm×1800mm with all accessories and 10 HP Motor | 2 | 1,40,000 |
| Ball mill size 900 mm×900 mm with all accessories with 7.5 HP Motor | 1 | 50,000 |
| Screw Blunger, capacity 5000 litre vat size 2.8 metre x 1.8 metre with 2 HP motor including cemented tank | 1 | 60,000 |
| Vibrating screen size 900 mm x 600 mm with all accessories with 1 HP Motor | 2 | 25,000 |
| Electromagnetic separator with rectifier 200 volts AC | 1 | 15,000 |
| Agitator size 2.4 mx18m with 3 HP motor | 1 | 45,000 |
| Diaphram pump, stroke 225 mm, section 75mm with 7.5 HP motor | 1 | 60,000 |
| Filter press chamber dia 300mm and 50plates. | 1 | 1,10,000 |
| De-airing pug mill with all accessories and 10 HP, 1HP Motor each | 1 | 1,15,000 |
| Turning machine/lathe machine with 2 HP motor each | 2 | 70,000 |
| Disintegrator size 550 CM with all accessories and 7.5HP motor | 1 | 55,000 |
| Granules making machine with 2 HP motor | 1 | 25,000 |
| Toggle press, hand operated | 7 | 1,69,000 |
| Jigger and Jolly for shaping with 1 HP motor | 1 | 35,000 |
| Water pump set with 2 HP motor | 1 | 25,000 |
| Saggar press hand operated | 1 | 28,000 |
| Engineering workshop lathe bench, drilling machine, Arc welding other misc. tools etc. | L.S. | 1,45,000 |
| Testing equipments | L.S. | 90,000 |
| Electrification + installation charges | L.S. | 1,17,000 |
| Total | 13,79,000 | |
| Misc. Tools, dies, trolleys, weighing platform etc. | 90,000 | |
| Cost of office furniture and fixture | L.S. | 64,000 |
| Total | 14,16,000 | |
Shuttle Kiln ; |
(Rs.) |
Value (Rs.) |
| Ceramic lined shuttle kiln having two ears control system, oil storage tank and two extra ears. | 1 No. | 13,75,000 |
| Pre-operative Expenses | L.S. | 60,000 |
| Total | 29,68,000 | |
| (+) Land and Building | 24,33,000 | |
| Total | 54,01,000 | |
Working Capital (Per Month)
Salary and Wages (per month)
Designation |
No. |
Designation |
(Rs.) |
| Manager-cum ceramist | 1 | 7,500 | 7,500 |
| Supervisor | 1 | 4000 | 4,000 |
| Accountant | 1 | 3,500 | 3,500 |
| Clerk-cum typist | 1 | 3000 | 3,000 |
| Skilled workers | 14 | 2,500 | 35,000 |
| Semi-skilled workers | 20 | 2,000 | 40,000 |
| Peon | 1 | 1,500 | 1,500 |
| Watchmen | 2 | 1,500 | 3,000 |
| Total | 97,500 | ||
| Perquisites @ 15% of total | 14,625 | ||
| Total | 1,12,125 | ||
Raw Materials (per month)
Particular items |
(Qty. (MT) |
Rate (Rs./MT) |
Value (Rs. lakhs) |
| Quartz/silica sand | 20 | 500 | 10,000 |
| Felspar | 25 | 600 | 15,000 |
| China clay | 20 | 1400 | 28,000 |
| Ball clay/Fire clay | 30 | 600 | 18,000 |
| Glazing materials | 2 | Transport charges | 14,000 |
| L.D.O (Fuel) | 23 KL | 14000 kL | 3,22,000 |
| Kiln furniture | 500 | 5000 | |
| Packing material | 5000 | 10,000 | |
| Total | 4,22,000 | ||
Utilities (per month)
Value (Rs.) |
||
| Power 60 kWH x Rs.3.00x 8hrs.x25 days | 36,000 | |
| Water | L.S. | 500 |
| Total | 36,500 | |
Other Contingent Expenses (per month)
(Rs.) |
|
| Postage and Stationery | 1,000 |
| Consumable stores | 2,000 |
| Repair and Maintenance | 6,000 |
| Advertisement | 1,000 |
| Insurance | 2,000 |
| Misc. Expenses | 1,500 |
| Transport | 1,500 |
| Total | 15,000 |
Total Recurring Expenditure (per month)
(Rs.) |
|
| Salaries and wages | 1,12,125 |
| Raw materials | 4,22,000 |
| Utilities | 36,500 |
| Other Contingent expenses | 15,000 |
| Total | 5,85,625 |
| Total For 3 months | 17,56,875 |
Total Capital Investment
(Rs.) |
|
| Total fixed investment | 54,01,000 |
| Total working capital | 17,56,875 |
| Total | 71,57,875 |
Financial Analysis
Cost of Production (per annum)
Value (Rs. lakhs) |
|
| Total recurring cost | 70,27,500 |
| Depreciation on building @ 5% | 66,650 |
| Depreciation on machinery and equipment @ 10% | 1,37,900 |
| Depreciation on mould, dies furniture and fixtures @ 20% | 30,800 |
| Depreciation on Kiln @ 20% | 2,75,000 |
| Interest on total investment @ 14% | 10,02,102 |
| Total | 85,39,952 |
Turn-over (per year)
| Particular items | Qty. |
Rate (Rs.) |
Value (Rs.) |
| L.T. Insulator and Electrical porcelain items | 900MT | 11600 | 1,04,40,000 |
Net Profit (per year)
| Sales - Cost of production | ||
1,04,40,000 – 85,39,952 |
||
| 19,00,048 |
Net Profit Ratio
Net profit per year × 100 Total Sales |
||
19,00,048 × 100 1,04,40,000 |
||
| 18.2% |
Rate of Return
Net profit per year × 100 Total capital Investment |
||
19,00,048 × 100 71,57,875 |
||
| 26.55% |
Break-even Point
Fixed Cost |
(Rs) |
| Total Depreciation | 5,10,350 |
| Interest on total Investment @ 14% | 10,02,102 |
| 40% of salary and wages | 5,38,200 |
| 40% of other Contingent expenses | 62,400 |
| Insurance | 24,000 |
| Total | 21,37,052 |
| B.E.P | 21,37,052 x 100 21,37,052 + 19,00,048
|
|
52.94% |
Addresses of Machinery Suppliers
- M/s. Modern Engg. and Fabricating Works
Behind Kubeshwar Mahadev,
Saijpur (Ambavadi) Naroda Road,
Ahmedabad (Gujarat) - M/s. Perfect Machine Tools Corporation
1, Smith Road, Chennai-600001,
(Tamil Nadu) - M/s. St. Vincent Industries
Convent Road,
Calicut, (Kerala) - M/s. Jawa Traders
12, Getanjali, 1st Floor,
Fort Bay-378,
Mumbai-400 005 - M/s. Sabarwal Metal Industries
9, Industrial Estate, Kalpi Road,
Kanpur-208012, (U.P.) - M/s. Bengal Lion (Industrial Furnace) Ltd.
27-B, Camal Street,
Kolkata-700016, (West Bengal) - M/s. Unifire Ltd.
16-18, Shakespere Sarai,
4th Floor, Kolkata-700071. (West Bengal) - M/s. Teksaga Bhagat Carakiln (P) Ltd.
D-828-M, New Friends Colony,
New Delhi-110065. N.C.T. - M/s. Sharma Kiln Technology (P) Ltd.
206, Hare Krishna Complex,
Ashram Road,
Ahmedabad-280006 - M/s. Orient Cerawool Ltd.
99, KM Stone,
Ahmedabad-Surendra Nagar
Highway, Lakhtar,
Distt. Surendranagar,
(Gujarat) - M/s. Murugappa Morganite Ceramic Fibres Ltd.
28, Rajaji Road,
Post Box No. 1570
Chennai-600001
(Tamil Nadu) - M/s. Wolkan (P) Ltd.
Mewar Indl. Estate,
Post Box No.21,
Udaipur, (Rajasthan) - M/s. Multani Minerals
Station Road, Junagadh,
(Gujarat) - M/s. Udayar Enterprises
1, Gandhi Road,
Salurn-676007. - M/s. United Mineral Ltd.
Comm. Bldg.,
102-Netaji Subhash Road,
Kolkata-70001. - M/s Tohla Ram and Sons
Rathkhna, Bikaner,
(Rajasthan) - M/s. Borax Morarji Co. Ltd.
Mahatma Gandhi Road,
Ambernath, Distt. Thane
(Maharashtra). - M/s. Tata Chemicals
Meethapur (Gujarat) - M/s. Sahn Chemicals Works
Sahanpur, Varanasi. - M/s. Belpahar Refractories Ltd.
48, Chaurayee Road,
Kolkata. - M/s. Carborundum Universal Ltd.
11/12, North Bitch Road,
(Chennai) - M/s. Orissa Industries Ltd.
P.O. Narang Distt.
Cuttack (Orissa) - M/s. Kumar Dubhi Fire Clay and Silica Works
P.O. Kumar Dubhi,
Distt. Dhanbad
Tunnel Kiln/Shuttle Kiln
For Ceramic Fibre
Raw Material Suppliers
Locally available.
Borax
Soda Ash
Refractories
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
