PROJECT PROFILE : M. S. INGOTS

 

INTRODUCTION

Mild steel ingots are the basic raw material for manufacturing various types of rerolled products. With the increased infrastructural activities in the country, the demand for mild steel ingots are very high now-a-days.

 

MARKET POTENTIAL

The demand for steel is bound to grow with the boom in construction, housing and infrastructural projects. With our Govt. policy to give more stress to the infrastructural development of the country, the construction has reached its boom. Moreover, the housing sector is growing very fast. The projected demand for finished steel set-up by Govt. of India and I.C.R.A. on Iron & Steel Industry is given as under.

    I.C.R.A. (In Thousend Tonns)
Years Govt. of India High Scenario Low Scenario
2001-02 16500 18000 15500
1006-07 24640 25600 12950

Considering the rate of increase of demand it is expected that M.S.Ingot manufacturing unit will perform well and will have no difficulty to market its products.

 

BASIC & PRESUMPTIONS:

The project profile is prepared on the basis of following presumptions :

(i) Working hrs/shift: 8 hours.
(ii) Working days/year: 300 days.
(iii) Efficiency: 75%.
(iv) Labour wage: As per minimum wage act of State Govt.
(v) Margin Money: 25% on Capital Investment.
(vi) Time period for achieving maximum production: 3rd year onwards.
(vii) Rate of Interest: 12%.
(viii) Operative period: 10 years.
.

 

IMPLEMENTATION SCHEDULE

Project implementation will take a period of ten months from the date of approval of scheme. Break up of different activities are as under :

Name of activity Time period (in months)
(1) Preparation of project report 0 to ½ months
(2) SSI Provisional Registration ½ months to 1 months.
(3) Sanction of loan 1 months to 3 months.
(4) Placement of order and delivery of plant
     & equipment.
3 months to 4 months.
(5) Installation of plant & Machinery 4 months to 7 months.
(6) Power Connection 7 months to 8 months.
(7) Recruitment of labour. 8 months to 8 ½ months.
(8) Trial Run 8 ½ months to 10 months.
(9) Commencement of production 10 months onwards.

 

 

TECHNICAL ASPECTS

(i) Process of manufacture

M.S. Scrap of predetermined composition is melted in Induction furnace and Liquid hot metal is transferred in pouring ladle. From pouring ladle the liquid metal Is transferred into ingot moulds. The ingot moulds are placed on the bottom plate at the correct position. Ingot moulds are C.I.Moulds placed with larger cross section at bottom. The central trumpet which receives the liquid metal is lined with bricks inside. General practice is to use three sets of bottom plates with moulds. Ingot moulds are cleaned from rust and dust from the inner surface with compressed air and suitable coating of graphite powder is given inside for easy removal ingot moulds. After the hot metal gets solidified, the ingot moulds are removed by crane. The ingots are then knocked out and transferred to cooling area for . Any surface defect if observed is removed by grinding, chipping etc. Ingots are batch marked of grade/heat number and stocked for dispatch. induction melting of steel uses pig iron and sponge iron as charge material in the project report.
The most commonly used ingot mould sizes for ingot production are 3”x4”x60” 3 ½”x4 ½”x60”.

(ii) Quality Specification:


IS: 8952’95 – Specification of steel ingots, blooms and billets for production of mild steel wire rods for general engineering purposes.

 

PROCESS FLOW CHART :

Melting of steel
In furnace

Transfer of metal in
pouring ladle.

Pouring of metal to
Ingot moulds

Solidification of ingots

Solid ingots are taken
out from moulds.

Gas cutting, cleaning
of ingots

Despatch

Production Capacity (P.a)

Quantity
Value

The capacity utilization will be 75% for the first three years and 80% thereafter.


: 8000 MT.
: Rs. 12.8 Crores.

Pollution Control Measures : Pollution from induction furnace is low. However, it can be still minimized by                                                  utilization of bag filters.

Motive Power Requirement : 2200 KVA.

Energy Conservation            : By efficient induction melting practice significant conservation can be done.

 

FINANCIAL ASPECTS:

(i) Land & Building (Rented).                                 Rs.

    Covered area 10,000 sq.ft. @ Rs.2/- P.m.        20,000/-

(ii) Machinery & Equipment.

S. No. Description Quantity Price (Rs)
1 One set of Induction melting furnace equipment comprising 2 nos 3000 kgs. Crucible with 1500 KW static frequency Converter.
1 34,50,000/-
2 1900 KVA 11/2 x0.85 KV Induction Furnace transformer. 2 set. 7,50,000/-
3 Induced draft FRP Cooling Tower Model No. CS-321 complete with other Accessories. 1 set. 1,55,500/-
4 M.S.Fabricated water treatment plant. 1 set. 1,85,000
5 15 M/T capacity double Girder box E.O.T. crane 15 meter span, height of lift 8 meter. 1 set. 11,35,000/-
6 Welding transformer with standard accessories. 1 set. 15,500/-
7 Injector pump, Centrifugal pump, Water pump mono block type etc. 3 Nos . 25,000/-
8 16” wheel dia sewing frame grinding machine 1 85,000/-
9 Oil fired heater for ladle heating complete with rotating tower, heater, oil fired equipment. 1 No. 1, 50,000/-
10 Compressor machine with 40 HP motor, tank with other accessories. 1 No. 3, 50,000/-
11 Electromechanical weigh bridge Plat form size- 7600 mm x 3000 mm Capacity – 60 MT 1 No. 2,21,000/-
12 Ingot moulds. L.S. 2,00,000/-
13 Laboratory equipments L.S. 1,00,000/-
  Total   Rs. 68,22,000/-


WORKING CAPITAL (Per month).
Staff & Labour.

S. No. Designation No. Salary (Rs) Total (Rs)
1 Works Manager cum Metallurgist 1 15000 10000
2 Melters 3 10000 10000
3 Chemist 3 8000 8000
4 Sales Personnel 2 8000 8000
5 Accountant 1 8000 8000
6 Clerk-cum-typist 2 5000/- 10000/-
7 Skilled Worker 6 6000/- 36000/-
8 Unskilled worker 12 5000/- 60000/-
    30 Nos   Rs 1,99,000

Raw materials (Per months).

S. No Description Quantity Rate (in Rs) Amount (in Rs)
1 Pig Iron 400 MT 10,500/- per MT 42 Lakhs
2 Sponge Iron. 270 MT 12,000 per MT. 32.4 Lakhs.
3 Dolomite, Ferro-alloys, retractions, ramming mass, coke etc. L S   1.0 Lakhs
      Total 75.4 Lakhs

 

Utilities (Per month).
Electricity : 3,75000 units @ Rs.2.15 =

Rs.8,06,200/-

 

Other Expenses.

a) Rent Rs 20,000/-
b) Consumable stores Rs.25,000/-
c) Maintenance Rs. 3,000/-
d) Stationery, Postage, Telephone etc. Rs. 5,000/-
e) Insurance Rs. 2,000/-
  Total

Rs.55,000/-


TOTAL WORKING CAPITAL (Per month).

A+B+C+D = Rs. 1,99,000/- + Rs. 75.4 Lakhs + Rs. 8,06,250/- + Rs. 55,000/-
                  = Rs. 85,10,250/-

TOTAL CAPITAL INVESTMENT.

Fixed Capital                          = Rs. 68.22 Lakhs.
Working Capital for 3 months = Rs. 2,55,30,750/-

Total:                                         Rs. 323.22 Lakhs.

FINANCIAL ANALYSIS.

Cost of Production (Per year)  
Total Recurring Cost. Rs. 10, 21, 23,000/-
Depreciation on machine @ 10%. Rs. 3, 02,200/-
Depreciation on Furnace @ 25%. Rs. 3, 60,000/-
Depreciation on moulds @ 25%. Rs. 50,000/-
Interest on Capital Investment @ 12%. Rs. 38, 78,640/-
Total: Rs. 10, 67, 13,840/-

Sales/Turnover (Per year).                                                               Rs. 10.671 Crore.

Item.        Description         Quantity           Rate                              Value

1               M.S.Ingot             8000 MT        @ Rs.16000 per MT.       Rs. 12.8 Crores.


Net Profit (Per year).

            = (Sales – Cost of Production)

            = Rs. (12.8 Crores – 10.67 Crores)

            = Rs. 2.13 Crores.


Net Profit Ratio.

             = Net Profit x 100 / Sales

             = Rs. 2.13 Crores x 100 / Rs. 12.8 Crores.

             = 16.64%.

 

Rate of Return.

             = Net Profit x 100 / Capital Investment

             = Rs. 2.13 Crores. X 100 / Rs. 3.23 Crores.

             = 65.9%.


Break Even Point.

(i) Fixed Cost.

a) Depreciation on machine Rs. 3,02,200/-
b) Depreciation on Furnace Rs. 3,60,000/-
c) Depreciation on moulds Rs. 50,000/-
d) Insurance Rs. 24,000/-
e) 40% of Salary & Wages Rs. 9,55,200/-
f) 40% of other Contingent expenses Rs. 2,64,000/-
  Total : Rs. 9,65,20,200/-

B.E.P
           = Fixed Cost x 100 / Fixed cost + Net Profit

                     = Rs. 96.52 Lakhs / Rs. 96.52 Lakhs + Rs. 213 Lakhs.

                     = Rs. 96.52 Lakhs / Rs. 309.52 Lakhs

                     = 31.12%.

 

NAMES & ADDRESSES OF MACHINE SUPPLIERS

1) For Induction Furnace.

 (a) Megatherm Electronics Pvt. Ltd.,
   Plot- L-1Block-GP, Sector-V,
   Electronics Complex, Salt Lake City,
   Kolkata-700 091,
   Tel. No. 033-2367-7352/7745/7854/6093
   Fax No. 033-2357-7757.

 (b) Electrotherm India Ltd.,
   Survey No. 72, Palodia (Via Tultej),
   Ahmedabad, Gujarat-382115,
   Tel No. 079-3734553-57,
   Fax No. – 079-3734616.

 © Inductotherm India Pvt. Ltd.,
   Bopal, Ahmedabad-308858,
   Tel No. 079-3731961,
   Fax No. (079) 3731266 & 3731268.

(2) For Transformers.

 (a) Emco Ltd.,
   Plot No. F-5, Road No. 28,
   Wagle Industrial Estate,
   Thane-400604
   Tel No. (022) 2583-0517-21
   Fax No. (022) 2583-0510.

(3) For Cooling Towers.

 (a) Southern Cooling Towers Pvt. Ltd.
   2, Chowringhee Terrace
   Opp. Gokhale Road,
   Kolkata-700 020
   Tel No. (033) 2223-1375/1577/2777
   Fax No. (033) 2223-1336.

(4) For EOT Cranes.

  Roy Birdi Manufacturing Pvt. Ltd.
  17, Abhay Guha Road, Liluah, Howrah,
  Tel No. 033-2655 5103
  Fax No. 033- 2654 8853


For Weighing Machines.
 (a) Arena Weighing & Engineering Industries,
   80/2, Swami Vivekananda Road,
   Howrah-711101
   Tel No. 033-2642 0409/0843
   Fax No. 033-2642-0409.

For Testing Instruments.
 (a) Testing Instruments Manufacturing Company,
   Bikaner Building, (1st Floor),
   Room No. 6, 8B, Lalbazar Street,
   Kolkata-700 001
   Tel No. 033-2105245, 248-6575
   Fax No. (033) 243-0092

NAMES AND ADDRESSES OF RAW MATERIALS SUPPLIERS.

For Ingot Moulds.
 
(a) JSIS Iron & Steel India Pvt. Ltd.,
   20, B.T.Road, Kolkata-700 002,
   Tel No. 033-255 63412
   
For Degassers, Lubricants, Fluxes etc.
 (a) M/s. Gargi Industries,
   2, Marcantile Apartments (Opp. Basanta Cinema),
   Chembur, Bumbai.

 (b) M/s. I.V.P. Ltd.,
   Sashikant N Reddi Marg,
   Ghorupdeo, Mumba-400033.
   Tel No. (022) 3719631-34.

For Refractories.
 (a) M/s. Kabita Refractories Pvt. Ltd.,
   P.O. Panuria, (Gourandiha),
   Dist. Burdwan,
   Tel No. 0341-2771242/43.

 (b) M/s. Refcon India Pvt. Ltd.,
   Barakar Road,
   Purulia-723101 (W.B)
   Tel No. 03252-22224/25180.