PROJECT PROFILE

PRODUCT:

RIGID P.V.C. PIPES (INSULATED)

NIC CODE :

25201

ASICC CODE :

42922

PRODUCTION CAPACITY ( P.A.) :

Rs. 5,37,60,000/-

MONTH AND YEAR OF PREPARATION :

APRIL - 2011

PREPARED BY:

CHEMICAL DIVISION SRI S.K. SAHU, ASST. DIRECTOR (CHEM.) MSME DEVELOPMENT INSTITUTE GOVT. OF INDIA, MINISTRY OF MSME VIKAS SADAN, COLLEGE SQUARE CUTTACK-753003 ORISSA TEL. 0671 - 2548049, 2548077 FAX: 0671-2332307

INTRODUCTION: Rigid PVC Pipes are fast replacing the conventional metal pipes in many applications. Use of PVC pipes as electrical conduits is well accepted in household and industrial activities. PVC conduits have been accepted by all Electricity Boards. PVC pipes of different diameters have gained wider acceptance for water supply. Their light weight, low cost, easy installation, noncorrosiveness, high tensile strength to withstand high fluid pressure make them ideal for number of purposes. They also offer resistance to most of the chemicals and have excellent electrical and heat insulation properties. PLANT CAPACITY PER ANNUM : 960 MT.

MARKET & DEMAND ASPECTS : In view of the priorities to rural water suppliers, irrigation facilities in the national planning and rapid rural electrification, the demand for rigid PVC pipe is growing regularly. 60% of the total demand of PVC pipe exist today is upto 110 mm outer diameter which is very much suitable for small scale sector industries. In the state like Orissa where 80% of total population lives in rural belt, irrigation, portable water supply, electrification always occupy in the forefront of planning. About six to seven small units are manufacturing PVC pipes in the state, but still there exist a very good scope of new units to meet the demand of internal and external market. RAW MATERIALS : S.no. 1. 2. 3. 4. 5. 6. Item PVC Resin D.O.P. Stabilizers Lubricants Colours Fillers Qty 58,000 2200 1200 600 200 3800

MANUFACTURING PROCESS : A) S.no. i) ii) iii) iv) v) vi) vii) viii) ix) PVC COMPOUND FORMULATION: Item PVC Resin Stabilizer (Non toxic) Primary Plasticizer Secondary Plasticizer Internal Lubricant External Lubricant Epoxy Plasticizer Pigment base Pigment Parts by wt. 100 5 1.5 5 3 4 1.5 3 As required

B)

PROCESSING:

The basic material which on Polymerisation produces P.V.C. Pipes is Poly vinyl chloride which in resin form is hard and rigid. The rigidity can be controlled by controlling the percentage of plasticizer at the time of compounding. Production of Rigid PVC pipe is based on plasticizing and homogenizing PVC compound and then passing the compound through an extruder. The hot molten PVC compound is extruded through a circular slit. Circular slit governs the size of pipe to be extruded. Different dies are used for manufacturing different size of pipes. The Pipes thus extruded through the die is then passed through a vacuum sizing tank wherein the dimensions of the pipe can be accurately set. It also helps in surface finish of the pipes. Vacuum sizing reduces the percentage of wastage considerably. As the pipe being extruded is rigid in form they cannot be wound into coils. So an inline motorized cutting device should be provided for cutting the pipes into required sizes. For ascertaining the consistency in product quality the unit should be equipped with process control laboratory for preliminary testing of raw materials. The unit may also have arrangement for quality testing of finished products.

BASIS OF PROJECT SELECTION : 1. Orissa and surrounding states like Chatishgarh, Jharkhand, Andhrapradesh require huge quantities of PVC pipe for irrigation programmes funded by both State Govt. & Central Govt.. 2. Plastic cluster is in operation in Balasore. 3. Skilled manpower and raw material are now plentily available. 4. The entrepreneur has vast experience on marketing of Pvc pipe.

PRESUMPTION : 1. 2. The scheme is based on single shift basis and 300 working days per annum and 80% efficiency of full capacity utilization. The information supplied is based on a standard type of manufacturing activity utilizing conventional technique of production at optimum level of performance. The factory shed and land has been taken in monthly rental basis. The cost respect of machinery and equipment, products, raw materials, etc. are those generally prevailing at the time of preparation of the project. A period of three years may be required to envisage full capacity utilization. The rate of interest has been taken as 12% per annum on both fixed and working capital.

3. 4.

5. 6.

PRODUCTION CAPACITY :

768 MT.

UTILITY :

Approx. 15,000 KW load

Financial Aspects : Fixed capital : LAND AND BUILDING: Land : Purchase fr om IDCO 2 acres Work shop shed : 10,000 sq.ft.X 3 nos. @ 300/sq.ft. Office Building : 1000 sq.ft. @ 400/sq.ft. Store cum godown 20,000 sq.ft. @ 300/sq.ft. Watchman shed , Parking stand, Boundary etc. LS Bore well LS Rs. 6,00,000/Rs.90,00,000/Rs. 4,00,000/Rs.60,00,000/Rs. 5,00,000/Rs. 1,00,000/Rs.1,66,00,000/-

MACHINERY AND EQUIPMENT: Sl. no. 1. Particulars High speed Mixer, nonschell type cap.50 kg. per batch/hr. filled with complete controls and cooling arrangement. 65 mm/18 V PVC rigid pipe extrusion plant consisting of twin screw extruder, vacuum sizing unit, cooling tank, haul off unit and cutting device complete with controls and motor, etc. 200 kg/hr. Dies size 20, 25, 45, 63, 75, 90, 110 mm and mandrel size 2.5 kg/cm2, 4 kg/cm2, 6 kg/cm2, 10 kg/cm2. Scraper, grinder, heavy duty fitted with electric Motor 5 HP Overhead water tank and recycling Pump units Weighing balance, heavy type industrial model 100 gm to 5 kg. No./rate 4 @ 90,000 Value in Rs. 3,60,000

2.

2 @ 20,00,000

40,00,000

3.

1 set each

2,00,000

4. 5. 6.

1 1 1

50,000 35,000 10,000

7. 8.

9.

10.

11.

-do1 kg. to 100 kg 1 Pipe storage, racks, maintenance of small hand tools, greasing, oiling equipment, etc. Testing and Quality controls: Chemical testing lab.,having chemical balance, Oven and equipment with testing equipment, apparatus for testing bulk density, specific gravity lead and tin estimation (in ppm), Lab. Equipment consisting of capacity testing apparatus, Impact tests, compressive strength, Hydraulic pressure (long term, short term) apparatus. Expr. For electrification, installation of machinery, water supply, etc. Office furniture & stationery

15,000 30,000

1,30,000

2,00,000

50,000 50,80,000

PRE-OPERATIVE EXPR. 1. Preparation of project profile 2. Contingency 3. Sale tax regn. (CST & OST) 4. Telephone 5. Travelling 6. Trial run 7. Misc. exp.

1,000 1,000 5,000 2,000 10,000 12,000 2,000 33,000

Fixed Capital: Land & Shed : Machinery & equipment Pre-operative expenditure 1,66,00,000 50,80,000 33,000 2,17,13,000

WORKING CAPITAL P.M. A) S.no. 1. 2. 3. 4. 5. 6. 7. 8. Staff and Labour payment : Designation No./salary Manager 1 @ Rs.10,000 Production chemist cum 1 @ Rs.7,000 supervisor Clerk cum typist 1 @ Rs.5,000 Accountant 1 @ Rs.4,500 Storekeeper 1 @ Rs.4,000 Skilled workers 4 @ Rs.5,000 Semi skilled workers 4 @ Rs.4,000 Peon cum watchman 2 @ Rs.3,000 Total Total salary 10,000 7,000 5,000 4,500 4,000 20,000 16,000 6,000 72,500

B) Raw material P.M. : S.no. Item 1. 2. 3. 4. 5. 6. PVC Resin D.O.P. Stabilizers Lubricants Colours Fillers

Qty./rate 58,000 @ Rs.54 2200 @ 60/1200 @ 60/600 @ 62/200 @ 140/3800 @ 10/TOTAL :

Amount in Rs. 31,32,000 1,32,000 72,000 37,200 28,000 38,000 34,39,200

C)

Utilities P.M. : 48,000

Electricity 15000 KWH @ 3.20 For factory & water supply D) 1. 2. 3. 4. Other contingent Expenditure (P.M.): Postage and stationery Advertisement and publicity Traveling Telephone

3,000 10,000 4,000 700 17,700

Sales per year :

768 MT. = Rs. 35,77,400/-

Total working capital per month

Working capital for 3 months = Total Capital investment Working capital investment

Rs. 1,07,32,200/Rs. 2,17,13,000 Rs. 1,07,32,200 Rs. 3,24,45,200

FINANCIAL ANALYSIS: 1. 2. 3. 4. 5. Working capital for 12 months Depreciation on plant and machinery @ 10% Dep. On shed @ 5% Depreciation on office furniture @ 20% Interest on total invt. @ 12% 4,29,28,800 4,83,000 8,00,000 10,000 38,93,424 4,81,15,224

TURNOVER (Per annum): Rigid PVC pipe produced per month using 80% efficiency Of machinery Turnover = 768 MT @ 73,000 per MT PROFIT: = Rate of return = Rs.5,60,64,000 Profit x 100 Total invt. 4,81,15,224 = 79,48,776/= 14%

64,000 kg. Rs. 5,60,64,000

Net profit ratio =

Profit x 100 Turnover

24.4%

BREAK EVEN ANALYSIS: Fixed cost: 1. 2. 3. 4. 5. 6. Depreciation on plant and machinery @ 10% Dep. On shed @ 5% Depreciation on office furniture @ 20% Interest on total invt. @ 12% 40% salary 40% other exp. 4,83,000 8,00,000 10,000 38,93,424 3,48,000 84,960 56,19,384

B.E.P. =

Fixed cost x profit Fixed cost + profit

41%

10

ADDRESSES OF MACHINERY SUPPLIERS: 1. M/s.DGP Windsor (India) Ltd., Regd. Office: E-6, U-2 Road, Wagle Industrial Estate, Thane-400604, Maharashtra. Branch office: P-157, CIT Scheme, VII-M, Ist floor, Near Ultadanga, VIP Road Crossing, Kolkata-700054. M/s.Brimco Plastic Machinery Corporation (P)Ltd., Plot No.55, Govt. Kandivili Ind.Estate, Charkop, Kandivili (W), Mumbai-400057. M/s.Neptune Plastic & Metal Industries, 16, India Exchange Place, Kolkata-700001. M/s.Shree Intertrade Pvt. Ltd., 4, Shree Satsang Society, Near Old Railway Crossing, Maninagar (East), Ahmedabad-380008, Gujarat. M/s.Golden Engg.Works, 87997, Shidipura Crossing, Rani Jhansi Road, New Delhi-110005. M/s.R.S.Mech Engineers (Regd.), Ganesh nagar, St.No.3, Link Road, Opp. Transport nagar, Industrial Estate-A, Ludhiana-141003, Punjab.

2. 3. 4. 5. 6.

ADDRESSES OF RAW MATERIALS SUPPLIERS: PVC Resin: 1. 2. 3. 4. M/s.Sri Ram Chemical Industries, Sri Rampura, Kota, Rajasthan. M/s. National Organic Chemical Industries Ltd., Sandoz House, Dr.A.Besant Road, Worli, Mumbai-400001. M/s.Chemplast, Dhun Building, 175/1, Mount Road, Madras-2. M/s.Plastic Resin & Chemicals Ltd., Bharat Insurance Building, 15-A, Nariman Circle, Mumbai-400001.

LIST OF UNITS SET UP BY USING THIS PROJECT PROFILE : 1. M/S. Jaiswal PVC pipes, Balasore 2. M/S. Hari Udyog Pvt. Ltd, Balasore 3. Neelachal Plastics, patia, BBSR.