RUBBER CONVEYOR BELT

PRODUCT CODE

: NA

QUALITY AND STANDARDS

: As per Market Demand

PRODUCTION CAPACITY
Value

: 30,000 meters of 40x 4 ply

: Rs. 3,52,50,000/-

MONTH AND YEAR

OF PREPARATION

: June, 2014

PREPARED BY

: Sh. Dinesh Kumar

Investigator (Mechanical)

1. INTRODUCTION
Rubber conveyor belting essentially consists of various fabrics like all cotton,
cotton/nylon, rayon/nylon, all synthetic etc. with a cover of various rubber grades
like oil resistant, flame resistant etc. The design of conveyor belt cover compound is
most important in determining the service life of the belt in any particular
application. Heat and flex-cracking resistance being the essential requirements of
conveyor belts in service, different types of anti-oxidants are used for heavy,
medium and light duty belts.
Conveyor Belt is designed as per requirement, width of belt can be taken
different size as well as thickness of belt can be determined as per basic need of belt
design. Conveyor Belt has more tolerated power to bear heavy load & it has long life,
moreover it can transfer power from one pulley to another.

2. MARKET POTENTIAL
The demand for rubber conveyor beltings has been steadily increasing with
the rapid industrialization in the Country. These belts are commonly used for
industrial purposes in thermal plants, fertilizer plants, railways, chemical plant, etc.
Depending upon the properties of cover compound and the number of plies, these
rubber conveyor belts are put to specific end uses in various industrial plants.

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Mechanical Division

3. BASIS AND PRESUMPTIONS

i.

The estimates are drawn for a production capacity generally considered

techno-economically viable for a model type of manufacturing activity. The
report has been based for a rubber belt 40x 4 ply x 100 meter size on an
average.

ii.

The information supplied is based on standard type of manufacture activities,

utilizing conventional techniques of production.

iii.

The cost in respect of machinery and equipment raw materials and the selling
price of the finished products etc. are those generally prevailing at the time of
the preparation of the project report.

iv.

14% interest rate is taken into account.

v.

Whereas some names of manufactures/suppliers of machinery and

equipments, raw materials are indicated at the end of the profile, these are by
no means exclusive or exhaustive.

vi.

The unit will work for 300 working days in a year on single shift basis.

vii.

The salaries and wages cost of land and building and raw material costs have
been taken according to the prevailing market rates.

4. IMPLEMENTATION SCHEDULE
Since the land has been taken as own there is no problem of acquisition of
land etc. The entire machinery and other testing equipments have to be purchased
and installed. It may take about 6 to 8 months on an average for a concern to go into
regular production. The unit has also to obtain permission from State Board for the
Prevention & approvals relating to installation and operation of boiler.

5. TECHNICAL ASPECTS
5.1. Process of Manufacture
Rubber conveyor belts are generally manufactured by two methods. One
method involves rubberizing the cloth by calendar machine and in the second
method rubberizing and in the second method rubberizing of the cloth is done by
spreading machine. In the case of rubberizing by calendar machine the production is
very high and there are no costs involved on account of solvent losses. After
rubberizing, the cloth in requisite number of layers is transferred to Hydraulic press
for vulcanizing to achieve the desired thickness. As regular the specifications in
conformation to IS: 1891, these mostly depend on the chemicals composition of the
top and bottom rubber layers. Different types of conveyor belting cover composition
are available for heavy duty, medium duty, light duty, heat resistant type of belts.

5.2. Quality Standard and Specification

No Specific standard available, products has to be manufactured according to
specific customer demand.
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Rubber Conveyor Belt

5.3. Production Capacity

It is proposed to manufacture 30,000 meters of Rubber conveyor belts of 40 x
4 ply

5.4. Pollution Control

These types of units are not producing any effluents or any other polluting
materials. Therefore pollution control measures are not taken into account.

5.5. Motive Power

Electricity: 150 HP= 150 X 746=111900 watt=111.90 K watt or say 112 K watt

6. FINANCIAL ASPECT
6.1. Fixed Capital
6.1.1 Land & Building
Land: 10,000 sq.ft.

Own.

Shed: 5,000 sq.ft @ 250/-

Rs.12,50,000/-

Office cum store : 2,000 sq.ft @250/-

Rs. 5,00,000/-

Boundary with gate

Rs. 1,00,000/Rs. 18,50,000/-

Total

6.1.2. Machinery and Equipments

Sr.
No.
1.

Description

Rate (Rs.)

Value (Rs.)

Rubber mixing mill 16x48 with chilled cast

iron rolls and standard accessories with 20
H.P Motor for each

2 nos. @
5,00,000

10,00,000

2.

Rubber Dispersion Kneader. with 20 H.P

Motor

1 nos.@
5,00,000

5,00,000

4.

Calender machine 8x26 with hollow rolls,

duly ground, with gun metal bushes, gear
box and other accessories with 16 H.P Motor

2 nos.@
6,50,000

13,00,000

5.

Farming table

2 nos.@
35,000

70,000

6.

Size cutting machine with electric motor 6

H.P

1 nos.@
70,000

70,000

7.

Wrapping machine with 5 H.P motor

1 nos.@
35,000

35,000

8.

Hydraulic mixture machine 2ftx15ft.with

pump, motor & other accessories 20 H.P
Motor

1 nos.@
10,00,000

10,00,000

9.

Hydraulic press 2.25 x 10ft.with all

accessories series with 20 H.P Motor

1 nos.@
10,00,000

10,00,000

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Mechanical Division
Sr.
No.
10.

Description

Rate (Rs.)

Value (Rs.)

Boiler 250 kg/hr with all accessories

1 nos.

3,00,000

11.

Generating set

1 nos.

2,00,000

12.

Testing Equipment
i) Tensile Testing machine

1 nos.

1,00,000

ii) Ageing Chamber

1 nos.

70,000

iii) Ross Scoti flex test machine

1 nos.

80,000

13.

Miscellaneous Tools & Equipments

L.S.

30,000

14.

Freight forwarding and packing expenses

L.S.

30,000

15

Erection and Electrification

L.S.

1,00,000

Total
L.S.

58,85,000
50,000

Total

59,35,000

16.

Office equipment ,working tables and

furniture

Fixed capital Investment:

Rs. 77,85,000/-

6.2. Working Capital (per month)

6.2.1. Salary & Wages
S.No. Description

Nos.

Salary/Month
(Rs.)

Value (Rs.)

Manager

25,000

25,000

Supervisor

15,000

15,000

Accountant/storekeeper

12,000

12,000

Clerk cum Typist

12,000

12,000

Skilled labour

10,000

60,000

Semi-skilled labour

8,000

56,000

Marketing Manager

12,000

12,000

Watchman

8,000

8,000
Total

6.2.2. Utilities (Rs.)

Power (10 KW @ Rs.6/unit x 8 hour x 25

12,000

Water

3,000

L.S
Total

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15,000

2,00,000

Rubber Conveyor Belt

6.2.3. Raw Material (Rs.)

1

Raw Rubber

9MT @ 70/kg

6,30,000

Synthetic Rubber/Nylon

4 MT @ 105/kg.

4,20,000

Whiting

3MT @ 4/kg.

Processing Oil

250kg @ 15/kg

3,750

Zinc Oxide

500kg @ 74/kg

37,000

Stearic Acid

350kg. @ 42/-

14,700

Rosin

500kg @ 55/-

27,500

Anti-oxidant

200kg @ 210/-

42,000

Accelerator

175kg @ 330/-

57,750

10

Sulphur

375kg @ 4/-kg

1,500

11

Pine Tar

250kg @ 16/-kg

4,000

12

Carbon Black

2.5MT @ 42/-Kg

1,05,000

13

Canvas/Fabric

10,000 meter @ 70/-meter

7,00,000

14

Colour, paints, Pigments

each ratio as per need

15

Packing material

as per requirement

12,000

5,000
10,000
Total

6.2.4. Other Contingent Expenses

Sr. No
Description
1
Postage and Stationery

Value (Rs.)
1,000

Telephone

1,500

Repair and maintenance

2,500

Consumable stores

3,000

Transport charges

8,000

Insurance

1,000

Sales expenses

1,000

Misc Expenses

2,000

Total

20,000

Total Working Capital per Month = Rs. 23,05,200/-

6.3. Total Capital Investment

Fixed capital

Rs. 77,85,000

Working capital (for 2 month)

Rs. 46,10,400

Total Capital Investment

Rs. 1,23,95,400

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20,70,200

Mechanical Division

7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
1.
2.
3.
4.
5.

Recurring expenditure per annum

Depreciation on shed and other civil constn. @ 5%
Depreciation on machinery & equipments @ 10%
Depreciation on office furniture & Tools @ 20%
Interest on total capital investment @ 14%

Rs. 2,76,62,400
Rs. 92,500
Rs. 5,72,500
Rs. 16,000
Rs. 17,35,356

Total

Rs. 3,00,78,756

7.2. Turnover (per annum)

Conveyor belting 30,000 meters of 40x 4 ply @ 1175/meter Rs. 3,52,50,000

7.3. Net Profit (per annum)

=

Turnover cost of production

Rs. 3,52,50,000 3,00,78,756

Rs. 51,71,244/-

7.4. Net Profit Ratio

=

Net profit per year

X 100
Turnover per year

= 14.7 %

7.5. Rate of Return

=

Net profit per year

X 100
Total Capital Investment

= 41.7 %

7.6. Break-even Point

Fixed Cost (per annum)

(In Rs.)

Insurance for one year

12,000

Interest on total capital investment @14 %

17,35,356

Total Depreciation

6,81,000

40% of salaries and wages

9,60,000

40% of other expenses excluding rent & Insurance

Total

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91,200
34,79,556

Rubber Conveyor Belt

B.E.P
=

Fixed Cost
X 100
Fixed Cost + Net Profit

= 40.2 %

ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS:

1.

M/s. Indian Expeller Works. A-4 Naroda Industrial Estate Naroda,

Ahmedabad-2

2.

M/s Sohal Engg. Works, L.B. Shastri Marg. off Raines Road, Mumbai-13.

3.

M/s. Richardson & Crudes Ltd. Byculla Road, Culcutta-19

4.

M/s. Bravo & Co. 108 Patwarbagan Lane, Calcutta-19

5.

M/s. Premier Engineers, Railway Road, Shirhind, Punjab

6.

M/s. Sunrise Industries, Railway Road, Shirhind, Punjab

7.

M/s. Anant Engg. Works, Bassi Road, Shirhind, Punjab

8.

M/s. S. Singh & Company, Opp. K.M.V. Jalandhar

9.

M/s. Indian Hydraulic, Suranasi, G.T. Road, Jalandhar

10. M/s. Rubber Mack, Outside Baisan, Bye-Pass, Shirhind, Punjab

11. M/s. Anant Corporation, Bassi Road, Shirhind, Punjab
NAMES AND ADDRESSES OF RAW MATERIALS SUPPLIERS:
1.

Indian Rubber Regenerating Co. 32, Micals Road Mumbai.

2.

M/s. I.C.I (India) P. Ltd, P.B No.-310, Crescent House, Ballard Estate,
Mumbai.

3.

M/s. Bayer India Ltd. Nagin Mahal. Veer Nirman Road, Mumbai.

4.

M/s. Monsanto Chemicals (I) Pvt. Ltd., Wakefield House ,Sport Road,
Mumbai.

5.

M/s. Plantation Corpn. Of Kerala Ltd., Chemparathi Mootils, Nagampadom,

Kottayam.

6.

M/s. United Carbon (India) Ltd., 133, M.G. Road, Mumbai.

7.

M/s. Kila Chand Devi Chand Co. Pvt. Ltd. Rubber Division7. Jamshed Ji
Tata Road, Mumbai.

8. M/s. Kamani Metallic Oxide Pvt. Ltd. Nichols Road, Kamani Chambers,
Mumbai.

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