Copper Coated M.S. Wire

Product Code	N.A.
Quality and Standards	As Per Standard Specifications
Production Capacity	480 M.T. (per year)
Uploaded on	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

• The project is based on single shift of 16 hrs per day and 300 working days in a year.
• The required land and buildings needed are included in the project cost.
• Three years required for achieving full capacity utilization.
• Labour wages have been considered as per present market trend.
• The rate of interest has been considered as 12% for calculation purpose.
• 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
Scheme preparation and approval.	1 month
S.S.I. provisional registration.	1 month
Financial arrangement.	1 month
Placement of order for delivery of M/C.	1 month
Installation of M/C.	1 month
Power connection.	1 month
Trial run.	15 days
Permanent registration.	1 week
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	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		Amount (In Rs.)
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

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	2,00,000
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 (b) Heavy duty reeling M/C 1.2 to 5.0 mm with 2 H.P. Motor and electricals	1 1	1,00,000 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	1	40,000
11. 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	LS	20,00,000
14. Laboratory equipment and chemicals muffle, Furnace. Hot place, glass apparatus. Test Bench with sink distilled water unit.	LS	5,00,000
Total		80,40,000
Excise, sales tax, installation and electrification @ 35% of Cost of Plant and Machinery (1 to 14)		28,12,000
15. Office and laboratory furniture and Typing machine		8,00,000
16. 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

Name of Raw Materials	Qty.	Rate (In Rs.)	Amount(In Rs.)
EQ. Grade M.S. wire rod 6mm to 8mm rod	41.0 M/T	50,000 M/T	20,50,000
Copper coating chemicals, Acids, anodes etc.	L.S.	-	1,00,000
Masonite board spool.	800 Nos.	40 Each	32,000
Total			21,82,000

(ii) Staff and Labour (per month)

Designation	No.	Salary (In Rs.)	Amount (In Rs.)
Works Manager	1	30,000	30,000
Production Manager, engineers, production supervisors	6	LS	1,00,000
Chemists	2		25,000
Skilled Workers	8		48,000
Semi Skilled/ Unskilled Workers	10		40,000
Commercial staff consisting of Sales, marketing, finance, purchase, Accountants, Stores and administration	10		1,00,000
Peon and laboratory boys	4	3,000	12,000
Security Guards	4	3,000	12,000
Total			3,67,000
Perquisites @ 22% of Salary			81,000
Total			4,48,000

Utilities	Amount (In Rs.)
Electricity and Water	10,00,000

(iii) Utilities (per month)	Rs
Power	1,00,000
Water	10,000
Total	110,000

(iv) Other Contingent Expenses (per month)	Rs
Stationery and postage	5,000
Publicity and advertisement	25,000
Insurance	22,000
Transportation	40,000
Repair and maintenance	30,000
Consumables and Chemicals	50,000
Misc. expenses	50,000
Total	222,000

(v) Working Capital (per month)	Rs
Raw Materials	21,82,000
Salary and Wages	4,48,000
Utilities	1,10,000
Other Expenses	2,22,000
Total	29,62,000

C. Total Capital Investment

Fixed Capital	Rs. 4,09,54,000
Working Capital for 3 months	Rs. 88,86,000
Total	Rs. 498,40,000

Financial Analysis

(1) Cost of Production (per annum)	(Rs.)
Working Capital	3,55,44,000
Depreciation on pl. and m/c @ 10% & civil construction @ 5%	19,55,000
Interest on total Capital investment @ 12%	59,80,000
Total	4,34,79,000

(2) Total Sales (per annum)		(Rs.)
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.)
Total Sales	5,43,50,000
Cost of Production	4,34,79,000
Total (i, ii)	1,08,71,000

Profit Ratio

Profit ×100 ------------------- Total Sales 1,08,71,000 ×100 ----------------------- 5,43,50,000 20%

% Rate of Return of Capital

Profit ×100 ------------------- Total Capital investment 1,08,71,000 ×100 ----------------------- 4,34,79,000 25%

Break-even Point

Fixed Cost	(Rs.)
Interest on Total Capital investment	59,80,000
Depreciation on Plant and Machinery & civil construction	19,55,000
40% Salary of staff and labour	21,50,000
40% of other expenditure	15,66,000
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

• M/s. Saran Engineering Works
  A-147, Ghatkopar,
  Industrial Estate,
  Mumbai - 400086.
  Wire Drawing Copper Coating Rewinding Machinery
• M/s. Viksa Shahu Udyog
  A-8/1, Jhilmil Tahirpur Indl. Area,
  G.T. Road, Shahadra,
  Delhi-110032. Wire Drawing Butt Welding M/C.
• M/s. Regal Dies
  25, Friends Colony,
  Indl. Area, Gali No. 2,
  G.T. Road,
  Shahadra,
  Delhi-110032.
  Wire Drawing Dies.
• M/s. Inducto Heat Inducto Therm India Ltd. Ambli,
  Ahmedabad - 380054.
  Annealing Furnace
• M/s. Graver and Weel India Ltd.
  Bharath Agencies
  Ahad Missions, 1st Floor,
  740, Mount Road,
  Madras-600002.
  Metal Coating Chemicals.
• M/s. Meta therm Furnace Pvt. Ltd.
  MIDC, Indl. Area,
  Balapur Road, Thane-400701.
  Annealing Furnace.

Raw Material Suppliers

• Steel Authority of India Ltd.
• Local Market.

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com