PROJECT REPORT ON WELDING ELECTRODES

PROJECT REPORT

ON

WELDING ELECTRODES

LOCATION: SY NO ; 10 5/ 11, J AYA K R I S H N A P U R A M V I L L A G E , T O L U S U R U P A L L I PA N C H A YAT, TEKKALI MANDAL S RI K AK U L A M D I S T.

Page 1 of 24

TAB L E O F C O N T E N T S S.NO

PARTI C U L A R S

PAG E N O

1.

P R O J E C T AT A G L A N C E

3 - 4

2.

INTRODUCTION

5 - 5

3.

SCOPE OF THE PROJECT

6 - 6

4.

CONSTITUTION AND SECTOR

7 – 7

5.

BACKGROUND OF THE PROMOTERS

8 - 9

6.

LOCATION AND ITS ADVANTAGES

10 - 10

7.

RAW MATERIALS

11- 11

8.

PROCESS FLOW CHART

12 - 12

9.

PROJECT COST & MEANS OF FINACNE

13 - 13

10.

DETAILED NOTES ON ESTIMATED PROJECT COST

14 - 15

11.

DETAILED NOTES ON MEANS OF FINANCE

16 - 16

12.

SW OT ANA LYS IS

17 - 17

13.

I M P L E M E N TATI O N S C H E D U L E

18 – 18

14.

PROJECT BENEFITS

19 – 20

15.

UTILITIES AND SERVICES

21 - 21

16.

ASSUMPTIONS

22 - 23

Page 2 of 24

01. PROJECT AT A GLANCE Name of the Unit Registered Office Particulars of Proposed Project Project site location and area Location Advantages

Unit Profile

Project Cost / Means of Finance

OMEGA WELDING ELECTRODES SY NO; 105/11, JAYAKRISHNA PURAM VILLAGE, TEKKALI, SRIKAKULAM Electrodes installed capacity of 1200 MTS per annum SY NO; 105/11, JAYAKRISHNA PURAM VILLAGE, TEKKALI, SRIKAKULAM Jayakrishnapuram is a village, in Mandal located in the Tekkali Mandal, Srikakulam district of Andhra-Pradesh state, India. The proposed location is Km from Anandapuram and about Km from Visakhapatnam. The location is near to the Visakhapatnam market. The availability of labour at Village is economical. The National highway is just 5.0 Km from the site location. Ground water is also available at plenty. The Unit M/s Omega Welding Electrodes is for manufacture of Welding E l e c t r o d e s . This profile envisages the establishment of a unit for the Manufacturing of Welding E l e c t r o d e s with an annual capacity of 1 2 0 0 M T S p e r a n n u m Name of the Promoters: Mr. Sreedhar Sanjeevi  

 PAR T I C U L A R S LAND BUILDINGS PLANT & MACHINERY ERECTION & E L E C T R I F I C ATI O N WORKING C A P I TAL M A R G I N T O TAL

The Total Project cost for the proposed unit is estimated and works out to Rs. 110.00 Lakh The project is proposed to be funded through term loan from bank to an extent of Rs. 68.50 Lakh and Equity of Rs. 41.50 Lakh The Debt Equity Ratio of the project works out to 1.65:1 AMOUNT PAR T I C U L A R S AMOUNT OWN C A P I TAL 41.50 13.00 TERM LOAN 68.50 70.00 10.00 17.00 110 . 0 0

T O TAL

Means of Finance: Capital : 41.50 Limits Required Term Loan : 68.50 Working Capital : 50.00 Total : 118.50 Page 3 of 24

110 . 0 0

Promoters Contribution : 37.72% Debt / Equity : 1.65:1 Manufacturing The Unit proposed to Manufacture of E l e c t r o d e s by a simple Process & and proven technology. Technology Raw Materials & T h e R a w M a t e r i a l r e q u i r e d f o r M a n u f a c t u r i n g o f Consumables Electrodes are available in and around Visakhapatnam itself .This being the first Unit with an annual capacity of 1200 MTS pa. Hence the promoter does not anticipate any problem in procuring the required raw materials for this Unit. Utilities Power: The total connected load to the plant is 60 HP. Water: Water is required for domestic 0.5 KLD purpose. There is one bore well present and no scarcity in water. Pollution Control: The technology adopted by the Unit is eco friendly. Market The Unit is in the process of having tie-ups with the clients. Arrangements Approvals M/s Omega Welding Electrodes has to be obtained approvals from SSI, APIIC, Consent order for establishment from AP Pollution Board, Electricity Feasibility certificate from The APEPDCL, Consent from Factories department, Consent for establishment from VUDA. Interest Rate Interest for Tem Loan and working capital is considered at 12.50 % and 12.75 % respectively Repayment The term loan is scheduled to ray in 84 equated monthly Period installments after a moratorium period of one year from the date of disbursement. The repayment starts from April 2017 and ends by September 2023. The total door to door tenor is 7 years. COD The proposed project is estimated to complete by December 2016 and commencement its full scale of commercial operations from April 2017. The estimated time to complete the project is about 12 months. Turn-over for 3 2017-18: Rs. 280.80 years in Lacs 2018-19: Rs. 324.00 2019-20: Rs. 367.20 .

02. INTRODUCTION Page 4 of 24

Electrode An electrode is an electrical conductor used to make contact with a nonmetallic part of a circuit (e.g. a semiconductor, an electrolyte, a vacuum or air). The word was coined by William Whewell at the request of the scientist Michael Faraday from the Greek words elektron, meaning amber (from which the word electricity is derived), and hodos, a way.

Anode and cathode in electrochemical cells An electrode in an electrochemical cell is referred to as either an anode or a cathode (words that were coined by William Whewell at Faraday's request). The anode is now defined as the electrode at which electrons leave the cell and oxidation occurs, and the cathode as the electrode at which electrons enter the cell and reduction occurs. Each electrode may become either the anode or the cathode depending on the direction of current through the cell. A bipolar electrode is an electrode that functions as the anode of one cell and the cathode of another cell.

Primary cell A primary cell is a special type of electrochemical cell in which the reaction cannot be reversed, and the identities of the anode and cathode are therefore fixed. The anode is always the negative electrode. The cell can be discharged but not recharged. Secondary cell A secondary cell, for example a rechargeable battery, is a cell in which the chemical reactions are reversible. When the cell is being charged, the anode becomes the positive (+) and the cathode the negative (−) electrode. This is also the case in an electrolytic cell. When

Page 5 of 24

the cell is being discharged, it behaves like a primary cell, with the anode as the negative and the cathode as the positive electrode. Other anodes and cathodes In a vacuum tube or a semiconductor having polarity (diodes, electrolytic capacitors) the anode is the positive (+) electrode and the cathode the negative (−). The electrons enter the device through the cathode and exit the device through the anode. Many devices have other electrodes to control operation, e.g., base, gate, control grid. In a three-electrode cell, a counter electrode, also called an auxiliary electrode, is used only to make a connection to the electrolyte so that a current can be applied to the working electrode. The counter electrode is usually made of an inert material, such as a noble metal or graphite, to keep it from dissolving. Welding electrodes In arc welding an electrode is used to conduct current through a workpiece to fuse two pieces together. Depending upon the process, the electrode is either consumable, in the case of gas metal arc welding or shielded metal arc welding, or non-consumable, such as in gas tungsten arc welding. For a direct current system the weld rod or stick may be a cathode for a filling type weld or an anode for other welding processes. For an alternating current arc welder the welding electrode would not be considered an anode or cathode. Alternating current electrodes For electrical systems which use alternating current the electrodes are the connections from the circuitry to the object to be acted upon by the electric current but are not designated anode or cathode because the direction of flow of the electrons changes periodically, usually many times per second. Uses Electrodes are used to provide current through nonmetal objects to alter them in numerous ways and to measure conductivity for numerous purposes. Examples include:  

Electrodes for fuel cells Electrodes for medical purposes, such as EEG (for recording activity), ECG (recording heart beats), ECT (electrical stimulation), defibrillator (recording and delivering cardiac stimulation)



Electrodes for electrophysiology techniques in biomedical research



Electrodes for execution by the electric chair



Electrodes for electroplating



Electrodes for arc welding



Electrodes for cathodic protection



Electrodes for grounding



Electrodes for chemical analysis using electrochemical methods



Inert electrodes for electrolysis (made of platinum)



Membrane electrode assembly Page 6 of 24

brain brain

Chemically modified electrodes Chemically modified electrodes are electrodes that have their surfaces chemically modified to change the electrode's physical, chemical, electrochemical, optical, electrical, and transport properties. These electrodes are used for advanced purposes in research and investigation. PRODUCT: WELDING ELCTRODE:

Welding electrodes are used in welding various metals in the fabrication of equipment for chemical & Allied industries, construction of steel structures such as bridges, factory sheds, in the manufacture of ships, Vehicles and engineering equipment. Mild steel is welded by electrodes to a maximum among all the metals & Alloys. Therefore M.S. Welding Electrode is the most widely used core wire. Besides this, special grade electrodes are being developed for specific applications. Welding electrodes comprise basically of steel core wire and coating ingredients or flux mild steel core wires are used in majority of unalloyed steel electrodes. Besides mild steel, nickel, Nickelcopper, Nickel irons are also used in MIG & TIG welding. Stainless steel wires are also used for welding in fertilizer, chemical & surgical instrument making industry. Coating ingredients are basically rutile, potassium silicate, sodium silicate and minerals like quartz, calcite and mica. Ferro-alloys are also used in the formulations of fluxes. The bulk users of welding electrodes are the manufacturers detailed as under: · Welded Tubes & Pipes · Structural fabrication & Construction · Ship & Ship ancillaries · Industrial machinery tools & equipment; and · Misc. users including repairs and maintenance Welding electrodes are used in different industries viz. · Thermal, hydel & nuclear power plants · Petrochemical Industry · Industrial machinery · Heavy engineering · Transportation · Fertilizers and Oil & water pipe lines

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03. SCOPE OF THE PROJECT The

envisaged

project

is

to

setup

at

Sy

No

10 5/ 11,

Jayakrishnapuram

Vil l a ge , Tek k a l i , S r i k a ku l a m D i s t f o r El e c t r od e s . T h e f i r m i s p ro mo t e d b y M r. Sanjeevi Sreedhar. The firm acquired the land at, Sy No 105/11, Jayakrishna Puram

Village,

Tek k a l i ,

Srikakulam

Dist.

The

total

project

out

lay

is

Rs . 110 .0 0 L ac s . T h e in st a lle d c ap a c it y of th e p ro po s e d F irm is 4 MT S p e r da y in one shift operations in 300 working days and the total annual Capacity of the proposed Firm is 1200 MTS. The operating capacity is assumed at 65%, 75%, & 85% in 1st, 2nd & 3rd year onwards.

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04. CONSTITUTION & SECTOR CONSTITUTION: A Proprietary concern by name and style “OMEGA WELDING ELCTRODES”. T h e l i n e o f a c t i v i t y i s t o M a n u f a c t u r i n g o f Electrodes. T h e F i r m i s p r o p o s e d Srikakulam District and Andhra Pradesh. The Firm is a proprietary concen 1. Mr. Sreedhar Sanjeevi

SECTOR: The Firm comes under Small Scale Sector and also under Priority Sector. The Firm

has

already

obtained

for

Registration

Certificate

Industries Centre, Srikakulam.

LICENCES AND APPROVALS: The Firm will obtain the following licenses and approvals. 1.

UDYOG AADHAR.

2

NOC, from Pollution Control Board.

3

Inspector of Factories approval.

4

VUDA approval

5

V AT/ C S T.

Page 9 of 24

from

the

District

05. BACKGROUND OF THE PROMOTER PROMOTER: M/S – OMEGA WELDING ELECTRODES, is established by 1. Mr. Sreedhar Sanjeevi

The

promoter

is

well

educated

and

professional

therefore

the

Firm

is

expected to run smoothly. The financial soundness of the promoter w ill help the speedy implementation of the project as well as smooth running of the Firm. He is able to raise required funds to meet the margins in long and short-term requirement of funds.

The Promoter is also capable of

infusing additional funds for the expansion of the Firm at a later state. Besides the Promoter qualified and experienced managerial personnel will monitor the day-to-day management of the Firm.

Mr.Sreedhar Sanjeevi:: Sri

Sreedhar

residing hailing

at from

Sanjeevi

1-157,

S/o

Sri

Narasimha

Mirapakaya

respectable

Peta,

family.

Marketing and other business.

He

Murthy,

Ravivalasa, is

having

5

aged

about

Sriakakulam

43 –

years,

532

years’ experience

in

212 the

He is the Sole proprietor of the Firm and he

i s an In c o me Tax as s e s se .

.

Page 10 of 24

06. LOCATION AND ITS ADVANTAGES Land: The

proposed

location

of

the

Firm

is

situated

at

Sy

No

1 05 / 11,

Ja y a k r i s h na pu r a m Vil l a ge , Tek k a l i , S r i k a ku l a m D i s t r i c t an d An dh r a P r a de s h . The

site

is

located

centrally

notified

backward

area.

The

location

of

the

industry has considerable influence on the techno- economical facility of the project. There are various factors contributing the functioning of an industry and following are the primary factors taken into consideration. Reasons for Selection of the Site: Adequate Raw Materials Adequate labor at economical rate. Adequate supply of water throughout the year. The site is w ell connected w ith road facility. Banking facilities and Government supports. Ad eq ua te Tra n spo rt fa cilitie s fo r e con o mica l tra n sp o rtatio n of fin ish ed product and spare parts. Nearest to the market. Availability of labour at economical rate. Adequate pow er supply. As the area is developed, the setting up of an industry in this region will help the people to progress both socially and economically.

INCENTIVES Reimbursement of 100% stamp duty and transfer duty paid by the Page 11 of 24

industry on purchase of land meant for industrial use Reimbursement of 100% stamp duty for lease of land/shed/buildings, mortgages and hypothecations Stamp duty will be reimbursed only one time on the land. Stamp duty will not be reimbursed on subsequent transactions on the same land GoAP is committed to supplying uninterrupted 24x7 quality power to all industries operating in the state. Fixed power cost reimbursement @ 1.00 per unit for a period of five years from the date of commencement of commercial production. Reimbursement of 100% net VAT/CST/SGST for a period of 5 years from the date of commencement of commercial production to Micro and Small Enterprises. Reimbursement of 75% net VAT/CST/SGST for a period of 7 years from the date of commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier to Medium Enterprises MSME projects engaged in recycling waste into environment friendly products/energy (such as waste to energy, waste to bio-gas, waste to manure) will be brought under zero rated category schedule of the VAT Act. 35% subsidy on cost of plant & machinery for specific cleaner production measures limited to 35lakhs for MSME, provided the measures are certified by Andhra Pradesh Pollution Control Board (APPCB). 25% subsidy for sustainable green measures on total fixed capital investment of the project (excluding cost of land, land development, preliminary and pre-operative expenses and consultancy fees) for below mentioned green measures with a ceiling of 50 crore. a) Waste water treatment: Constructing effluent treatment plant and sewage treatment plant and using recycled water for industrial purpose, especially zero discharge systems. b) Green Buildings: Buildings which obtain green rating under the Indian Green Building Council (IGBC/LEED Certification) or Green Rating for Integrated Habitat Assessment (GRIHA) systems. c) Use of renewable source of power (erecting captive sun, wind and biomass plants etc.). d) Installing Continuous Emission Monitoring System (CEMS) for red category industries. The information should be disseminated continuously to APPCB. e) Adopting rain water harvesting; restoring water bodies by destilting defunct water bodies. f) Any other environment management project approved by Empowered Committee of Secretaries. An exclusive MSME Policy will be brought out separately to address the needs of MSME sector

07. RAW MATERIALS

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The raw material used in the process of manufacturing of Welding Electrodes is Mild Steel Wire and Borax. 08. MARKETING The India welding consumables market is expected to exhibit a CAGR of 5.60% from 2014 to 2020. The market’s value as recorded in 2013 was INR30.8 bn. The overall value of the India welding consumables market is expected to reach INR45.3 bn by the end of 2020. By volume, the India welding consumables market stood at 255.1 kilo tons in 2013. The India welding consumables market is segmented according to product type and application. Among product segments, the India welding consumables market in 2013 was dominated by welding stick electrodes. It held over 45.0% of the market in 2013. The report then explains how the demand for wires and fluxes is expected to increase in the near future due to the advantages that they possess. The key driver of the India welding consumables market is expected to be the growth of its end-use industries, especially the building and construction industry. Other drivers include increasing investment in the oil and gas as well as energy sectors. The report also focuses on restraints on the India welding consumables market, such as volatility in raw material supply, advent of international competitors, and a lack of skilled labor. Welding stick electrodes dominated the welding consumables market in India with more than 45% share in 2013. Stick electrodes are primarily used in manual welding and are a low cost alternative to other types of welding consumables products. However, demand for wires and fluxes are anticipated to rise significantly during the forecast period due to their efficient performance. Factors such as lower wastage, suitability for automatic welding systems and outdoor work, higher productivity and wide usage among different welding technologies are likely to lead to increasing preference for solid and flux cored wires. The SAW wires and fluxes segment is projected to witness moderate growth, accounting for more than 7% share of the market in 2020. In terms of revenue, flux cored wires is anticipated to be the fastest growing product segment during the forecast period. Growth in end-use industries (including transportation, and building & construction) is estimated to be the key factor driving the welding consumables market in India. Furthermore, increase in investments in energy and oil & gas sectors is anticipated to boost the welding consumables market in India. Automobile and transportation sector witnessed the largest application of welding consumables with more than 25% share in 2013. Power sector is likely to be the fastest growing segment, expanding at a CAGR of 5.8% during the forecast period

Page 13 of 24

from 2014 to 2020. Other applications such as wear plates and marine applications are projected to grow moderately in the next few years.

09. MANUFACTURING PROCESS Wires of different chemical compositions and sizes are obtained from different steel manufacturers. In electrode making plant, they are chemically cleaned, cut to different lengths (30 the selling prices of welding electrodes vary according to length of the electrodes and the raw material used. There are two methods of applying Flux coating on the core wire, (a) by dipping, (b) by extrusion. Extrusion method is very fast and economical; produces strong uniform and concentric coatings and has largely replaced the dipping process. (a) Dipping method. Number of core wires cut to definite length is clamped vertically in a fixture and are dipped in a bath of molten flux. When a suitable thickness of the flux gets adhered to the core wire, the fixture is raised and the flux is allowed to dry. (b) Extrusion process. Coating ingredients as discussed earlier are mixed up in desired quantities, binder (often sodium silicate) is added and the resultant mass is brought in the form of a thick, viscous, stiff paste. This paste is shaped in the form of a cylinder which is fed into the extrusion press. Core wire and thick paste of flux simultaneously under pressure pass through a die, thus attaching the flux coating on the core wire. The coating thickness depends upon the die opening and can be varied. As a next step the flux from the gripping end of the electrode is removed by an electrically rotated wire brush; after which the electrodes are fed to ovens where they are dried and baked to remove excess moisture. The electrodes are thereafter sorted, wrapped in polythene paper, put into packets, and bulk is boxed into wooden cases. Packets and boxes generally have information about: electrode coding, electrode size, nature of current and polarity, batch number, name of manufacturer, date of manufacture, etc.

09.1 PROCESS FLOW CHART PRINICIPAL WELDING PROCESS

Page 14 of 24

FL O W C H A RT:

Page 15 of 24

10. PROJECT COST & MEANS OF FINANCE Page 16 of 24

Rs in lacs

PAR T I C U L A R S LAND BUILDINGS

AMOUNT OWN 13.00

PLANT & MACHINERY ERECTION & E L E C T R I F I C ATI O N WORKING C A P I TAL M A R G I N T O TAL

70.00

PAR T I C U L A R S C A P I TAL TERM LOAN

AMOUNT 41.50 68.50

T O TAL

110 . 0 0

10.00 17.00 110 . 0 0

Means of Finance: Capital : 41.50 Limits Required Term Loan : 68.50 Working Capital : 50.00 Total : 118.50 Promoters Contribution : 37.72% Debt / Equity : 1.65:1

11. DETAILED NOTES ON PROJECT COST Page 17 of 24

Land: The proposed Fir m has already taken land & Buildings for own at , 105/ 11, J a y a k r i s h n a P u r a m Vil l a g e , Tek k a l i , S r i k a k u l a m D i s t r i c t , An d h r a Pradesh. The location is quite suitable for setting up the Firm.

Buildings: The promoter wants to construct the civil constructions at an extent of 1266 Sq Ft worth of Rs. 13.00 Lacs Plant & Machinery The following machinery worth of Rs.70.00 lacs are required to run the Firm.

The

Promoters

have

already

approached

reputed

suppliers,

and

obtained quotations and enclosed the same for your reference. Description Dry Mixer Ribbon Blender ( 500 Kg) Wet Mixer 100 Kg Wire Straightening & Cutting Machine – 200 Briquetting Press ( Slug Press) Wire Feeder (Vertical) Extruder – Horizontal (Twin Cylinder) Conveyor Unit Electrode Name Printing Unit Concentricity Tester Baking Oven 150 degrees Wire Drawing Machine (3 Blocker) Shrink Packing Machine Box Strapping Machine Cut Wire Stand Metal Trays Pallet Truck 2 ton ( Hand Operated) Packing table Weighing scale – 300KGs –platform Weighing scale 5 Kgs Lab Equipment

Unit Price in Rs 190000.0 0 205000.0 0 310000.0 0 210000.0 0 475000.0 0 1250000. 00 700000.0 0 70000.00 6000.00 465000.0 0 800000.0 0 140000.0 0 170000.0 0 5000.00 200.00 18500.00 10000.00 28000.00 9500.00 10,00,000 .00

Page 18 of 24

Qt y.

PRICE in Rs

1

190000.0 0 205000.0 0 310000.0 0 210000.0 0 475000.0 0 1250000. 00 700000.0 0 70000.00 6000.00 465000.0 0 800000.0 0 140000.0 0 170000.0 0 20000.00 100000.0 0 37000.00 10000.00 28000.00 28500.00 10,00,00 0.00 6214500. 00

1 1 1 1 1 1 1 1 1 1 1 1 4 50 0 2 1 1 3 LS

HP

60. 00

Excise Duty CST 2% Total

651812.5 0 117326.2 5 6983638. 75

Working Capital Margin: An amount of Rs.17.00 Lacs provided working capital margin in this project.

The detailed working requirement placed as annexure

12. DETAILED NOTES ON MEANS OF FINANCE

CAPITAL: The

promoter

contributed

by

capital the

was

fixed

Promoters

and

at it

Rs.41.50 Lacs will

works

out

which 37.72

%

will

be

of

the

p ro je c t co s t of Rs . 110 .0 0 La c s . Term Loan: The unit desires to avail Term Loan of Rs. 68.50 Lacs. from Bank/Financial Institute to meet part cost of the project cost, which works out to 62.27 % of the total project cost of Rs. 110.00 Lacs. The amount would be repayable in 28 quarterly installments of Rs. 2.44 Lacs each with a moratorium of nine months from the date of commencement of Commercial Production. However, the interest on the term loan would be payable as and when it is applied on the account. The detail of the repayment programmed is placed in this report.

WORKING CAPITAL LOAN: The Firm is eligible for working capital loan (cash credit limit) of Rs 50.00 lacs in this project.

Page 19 of 24

13. SWOT

ANALYSIS

Strength: 1) The Firm is proposed “OMEGA WELDING ELECTRODES”. 2) The Promoters are experienced in the line of activity for over a decade. 3) The products are essential for engineering works with constant demand. 3) Availability of Labour. 4) Availability of raw material. B) Weakness: The

Firm

has

to

compete

with

the

existing

manufactures

in

the

open

market. However, existing Companies are far away from the raw material source the Firm can compete with them. The Firm is one of its kinds in the area where the market potential as well as raw material is substan tial. C) Opportunities: The Firm has an opportunity to enhance the existing Business and process products.

(D) Threats: The

proposed

Electrodes

in

Firm the

is Firm

a

new has

Firm to

local

compete

market. with

the

The

manufacturing

large

malty

of

national

industries, which are in the market. In balance, there is adequate market Page 20 of 24

share

for

the

possibilities

Firm

of

in

export

view to

of

other

the

demand

states

supply

keeping

in

gap

and

view

the

also

the

eventual

diversification into the manufacture of high quality of Electrodes. The Firm would be in a position to counter in the threats if any, because of Govern ment encouragement to small-scale industries.

14. IMPLEMENTATION SCHEDULE:

The schedule of implementation of the project is as under: S.No 01. 02.

Particulars Acquisition of Land Civil Works factory Building, machinery

Month Start OWN NOV 2016

Month Completion OWN NOV 2016

DEC 2016

DEC 2016

Foundation. Auxiliary building, 03.

miscellaneous Building. Plant & Machinery Indigenous

04. 05. 06. 07.

Placement of Order Arrangement for Power Arrangement for Water Erection of Equipment Initial Procurement of Raw Material and

NOV 2016 NOV 2016 DEC 2016 JAN2017

NOV 2016 NOV 2016 JAN 2017 JAN 2017

08. 09.

Chemical. Tra in in g of Pe rso nn e l Tria l Run

FEB 2017 MAR2017

FEB 2017 MAR 2017

10.

Commercial Production

APRIL 2017

Page 21 of 24

APRIL 2017

15. UTILITIES AND SERVICES POWER: The

Firm

requires

60

H . P.

of

power

supply

under

L T.

Limits.

No

problems are anticipated w ith regard to obtaining of pow er supply.

W ATE R : The Firm requires 1000 Liters of w ater per day, for domestic purpose. A provision is made for bore well and overhead tank in the scheme under the head Civil Works.

EFFLUENTS: There are no harmful effluents generated in the process. Pollution free industry. No approval is required.

T R A N S P O R TATI O N : The proposed Firm is located at The proposed site is located 500mts from NH-5. There is no problem for transportation of raw material and finished goods.

MANPOWER REQUIREMENTS: The

Firm

will

administrative

be staff.

employing All

the

21 above

No

of

workers

persons

without any difficulties.

Page 22 of 24

can

be

besides

3

recruited

No

of

locally

.

16. ASSUMPTIONS Assumptions underlying for preparation of Financial Statements: Installed Capacity: Description of the product Installed capacity No of working days in a year No. of shifts Installed capacity per annum Operating Capacity:

ELECTRODES 4 MTS/DAY 300 1 1200 MTS

Operating Capacity is assumed as under:

Year 2017-18(In MTS) Utilization % 65 Electrodes 780 Cost of Raw Materials:

2018-19 (In MTS) 75 884

2019-20 (In MTS) 85 1001

Raw materials Requirement Description @ 2% loss: S. No

Description

Qty/MT

Unit Cost(Per

Amount

MT) 1

Core Steel Wire

795.60

19000.00

151,16,400.00

2

Flux Compound

300.00

20,000.00

60,00,000.00 2 11, 16 , 40 0 .0 0

Stores & Spares: Stores and Spares are estimated as Rs.8.125 Lacs in a year. Power & Fuel: Power and Fuel is estimated as 120x8x300x.746x.80x.60x6.50= 6,70,325.00 Per annum Wages: Wages are calculated as under

Page 23 of 24

Supervisor

3 Nos.

x Rs. 10,000/- Per Month = 30,000

Skilled Workers

6 Nos.

x Rs.8,000/- Per Month

Unskilled Workers

15 Nos. x Rs.4,000/- Per Month

= =

48,000 60,000 __________

1,38,000 * 12

or say

= 16,56,000 : 16.56 lacs

Repairs and Maintenance: R e p a i r s a n d M a i n t e n a n c e a r e e s t i m a t e d a s R s 3 , 2 5 , 0 0 0 / - P.A . Administrative Expenses: Administrative Expenses are estimated as 2% on Sales of Rs.12.48 Lacs per annum. It includes telephone, sadar, travelling expenses. Sale Expenses: Sale Expenses are estimated as 2 % on sales of Rs.12.48 Lacs

Cost of Sales : Sales Revenue: Sales estimated as under: S. No

Description

Qty

Unit Cost(Per

Amount

MT) 1

Electrodes

780 MTS

36,000

280,80,000.00 Or Say 280.80 Lacs

Page 24 of 24