Project Profile
- ALLUMINUM POWDER
Introduction
Aluminum
powder is fine granular powder made from Aluminum. In form
of powders, Aluminum is used for several applications such
as manufacture of slurry, explosive and detonators, hermit
process used for manufacture of Ferro alloys and for specialized
welding applications such as rails, pyrotechnic to manufacture
crackers, sparkles and other pyrotechnic products. Manufacture
of aluminum paste, paints and several powder components used
in automobiles. The most important property of aluminum powder
to undergo a vigorous exothermic reaction when it gets oxidized
finds application in pyrotechnic process. In foundry, aluminum
powder is used as a defoliant and exothermic tapping compound
to increase the yield casting.
Market Potential
The aluminum
powder is a consumable product. Presently there are four major
organized manufacturers of aluminum powder. They are metal
powder company, Thirumangalam, INDAL, MUMBAI, Khoski Metal
Powder company pure and ‘Arasan Aluminium Industries,
Sivakasi. In addition, there are number of Small Scale industries
located in Karnataka, M.P., Maharashtra, Gujarat and Delhi
with an installed capacity of 1 tone per day. In recent year
DGTD has estimated the growth of demand between 8 to 10 yr.
per annum. So that it can be said that production of aluminum
powders of various grades and products such as aluminum paste
is well established in the country. The aluminum powder industry
is of a remarkable size. There is a growing market for export
of aluminium powder and paste. Good opportunities exist in
the field of setting up new units in Small Scale Sectors with
proven technology and appropriate quality orientation.
Basis and Presumptions
1) The production
target has been calculated on the basis of 300 working days
in a year on two-shift basis. Since it is a continuous process
and the raw material is indigenously available. The melting
losses have been considered as 3.5%.
2) The capacity
utilization in the first year of manufacture would be around
60% and 70% and full capacity utilisation would be gradually
in a phased manner.
3) The wages
are based on local market privilege
4) The interest
rate for total investment would be calculated ion the basis
of 14% per annum
5) The margin
money requirements for obtaining financial assistance would
be around 25% of the total investment
6) Value
of Machinery and Equipment estimated on the basis of prevailing
market.
Implementation Schedule
The project
can be implemented in a period of 8-9 months by performing
various activities in a systematic manner and simultaneous
application of various common activities. Break-up of various
activities with time period shown below:-
SI.No. |
Name of activity |
Time period
in month |
1. |
Scheme preparation and approval |
0 - 1 |
2. |
SSI Provisional Registration |
1 - 2 |
3. |
Preparation of Detailed Project Report and approach
for finance |
2 - 5 |
4. |
Placement of order for delivery of Machinery |
4 - 5 |
5. |
Installation of Machinery |
6 - 7 |
6. |
Power connection |
6 - 7 |
7. |
Trial run |
7 - 8 |
8. |
Commercial production |
9th month onwards |
TECHNICAL ASPECTS
Production
details and process of manufacture
The aluminium
Powder is manufactured in several forms such as flake like
particles, granular powder (automised aluminium) etc. for
the production of aluminium powder. There are several processes;
one can use any of them.
The metal
is melted in furnaces and the temperature maintained is around
720º C to 760º C. Automised aluminium produced by
blasting the stream of molten Aluminium into small particles
by air jet. For this purpose, an atomizer is used which consists
of a straight tube with lower and dipped in molten metal and
upper end terminating as a small orifice. A jet of hot air
under pressure is passed through armillary opening near the
top, which impinges on a stream of molten aluminium drawn
by suction through the orifice. This leads to the formation
of Small particles of aluminium. These particles are drawn
by suction through the nozzle and finally into cyclone collecting
system. The particle size can be controlled to some extent
by varying nozzle opening, air pressure etc. The different
sizes of Aluminium Powders are segregated by sewing. Then
packing is done as per market requirement for specific quality.
The Process Flow
Chart Is As Under:
Quality Control and Standards
The powder produced will meet standard specifications for
air atomized powder and by using proper control equipment
consistent quality of the product can be fully ensured with
minimum losses. The quality standards as per IS-438-1972 are
to be followed.
Production Capacity
Quantity:
240 MT
Value:
Rs.3.00 crore
Motive Power Requirement
Total motive power requirement is 6 HP
Pollution Control
The unit has to take into consideration the anti-pollution
measure for dust pollution. The unit has to obtain no objection
certificate or pollution clearance certificate. Necessary
pollution control measures are to be incorporated in the control
profile.
Energy Conservation:
The requirement of energy is given under the head ‘utility’.
As manufacture of this product requires furnace oil, the need
for energy conservation is important. In furnace, for supply
of furnace oil, efforts are to be made for maximum utilization
of energy with respect to the maximum capacity of furnace
and the burners are to be used standard quality.
FINANCIAL ASPECTS
A. FIXED CAPITAL
(i) Land and Building Rs.
Land – 5000 Sq. ft. @ Rs.20 per sq.ft. = 1,00,000
Built up
area - Office and factory shed – 4000 sq. ft. 8,00,000
@ Rs.200/-
Per sq. ft.
Boundary
Wall, Gate etc. = 1,00,000
10,00,000
(ii) Machinery & Equipment
SI.No. |
Description |
Qty. |
Rate (Rs.) |
Value (Rs.) |
1. |
Oil fired furnace – 250 kg. |
1 |
1,20,000 |
1,20,000 |
2. |
Oil Tank (2,000 ltrs. Cap) |
1 |
5,000 |
5,000 |
3. |
Ball Mill Cap – 50 Hrs. driven by 1 HP motor |
1 |
40,000 |
40,000 |
4. |
Compressor |
1 |
40,000 |
40,000 |
5. |
Hot Air Chamber |
1 |
50,000 |
50,000 |
6. |
Powder collecting dust complete with suction arrangements
etc. |
1 |
40,000 |
40,000 |
7. |
Water cooling tank with pumps |
|
20,000 |
20,000 |
8. |
Weighing platform 500 kg. capacity |
|
15,000 |
15,000 |
9. |
Testing Equipments |
|
L.S. |
40,000 |
10. |
Office Furniture |
|
L.S. |
30,000 |
|
Total |
|
|
4,00,000 |
|
Mechanical & Electrical Installation @ 10% |
|
|
40,000 |
|
Grand Total |
|
|
4,40,000 |
(iii) Preliminary and preoperative expenses = Rs.
60,000/-
Total Fixed Capital (i + ii + iii) Rs.15,00,000/-
B. WORKING CAPITAL PER MONTH
Personnel (per month)
SI.No. |
Personnel |
Salary (Rs.) |
Nos. |
Amount (Rs.) |
1. |
Manager |
10,000 |
1 |
10,000 |
2. |
Supervisor |
6,000 |
1 |
6,000 |
3. |
Skilled Workers |
4,000 |
3 |
12,000 |
4. |
Semi-skilled workers |
3,000 |
4 |
12,000 |
5. |
Helpers |
2,500 |
4 |
10,000 |
6. |
Typist / Clerck |
3,000 |
2 |
6,000 |
7. |
Peon |
2,000 |
1 |
2,000 |
8. |
Watchman |
2,000 |
1 |
2,000 |
|
Total |
|
|
60,000 |
|
Additional perquisites @ 15% |
|
|
9,000 |
|
Grand Total |
|
|
69,000 |
(ii) Raw Material (per month) Amount (Rs.)
Aluminum
Ingots 21 MT @ Rs.1, 02, 000/- MT 21,42,000
(iii) Utilities (per month)
Power –
1000 units @ Rs.3.50/unit 3,500
Water 500
Furnace Oil
8,000
Total 12,000
(iv) Other Contingent Expenses (per month)
1) Publicity
1,000
2) Postage
and Stationery 500
3) Telephone
1,500
4) Traveling
and Conveyance 2,000
5) Consumables
like flux etc. 3,000
6) Packing
Bags etc. 3,000
7) Repair
and Renewals 2,000
8) Insurance
1,000
Total 14,000
( v) Total Recurring Expenditure (per month) Rs.
i) Personnel
69,000
ii) Raw material
21,42,000
iii) Utilities
12,000
iv) Other
Contingent Expenses 14,000
Total
22,37,000
(vi) Total Working Capital for 3 months
22.37.000
x 3 67,11,000
C. Total Capital Investment
Total Fixed
Capital
15,00,000
Working Capital
for 3 months- 67,11,000
Total
82,11,000
FINANCIAL ANALYSIS
1)
Cost of Production (per year)
i) Total
Recurring Cost 2,68,44,000
ii) Depreciation
on Building @ 5% 45,000
iii) Depreciation
on Machinery and Equipment @ 10% -
29,000
iv) Depreciation
on furnace @ 20% 24,000
v) Depreciation
on Office furniture @ 20% 6,000
vi) Interest
on total Investment @ 14% 11,49,540
Total
-
2,80,97,540
2) Turnover (per year)
By selling
240 MT of different grades of Aluminium
Powder @ Rs.1,25,000/MT
- Rs. 3,00,00,000
3) Net Profit (per year)
= Total Sale
(per annum) – Cost of Production
= Rs.3,00,00,0000
– Rs.2,80,97,540
=
Rs.19,02,460
4) Net Profit Ratio
= Net Profit
per annum x 100 / Turnover per annum
= 19,02,460
x 100 / 3,00,00,000
= 6.34%
5) Rate of Return
= Net Profit
per annum x 100 / Total Investment
= 19,02,460
x 100 / 82,11,000
= 23.17%
BREAK EVEN POINT
Fixed Cost
per annum Rs.
1) Total
Depreciation 1,04,000
2) Interest
on total Investment
11,49,540
3) Insurance
12,000
4) 40% Salaries
and Wages 3,31,200
5) 40% other
contingent expenses excluding
Insurance
62,400
Total
16,59,140
B.E.P = . Fixed Cost x 100 / Fixed Cost
+ Profit
=
16,59,140 x 100 / 16,59,140 + 19,02,460
=
16,59,140 x 100 / 35,61,600
=
46.58%
Addresses of Machinery and Equipment Suppliers
1) M/s.
Indian Furnace Co. Ltd.
NSE
Estate, Goregaon (East)
Mumbai
2)
M/s. Annie Engg. Co. Ltd.
B.T. Road, Kolkatta
3) M/s.
G.R. Engg. Works (P) Ltd.
Poonam Chambers, Dr. Annie Besant Road
Worli, Mumbai.
Addresses of Raw Material Suppliers
1) M/s.
Hindustan Aluminium Co. Ltd.
Renukoot, Mirzapur (U.P.)
2)
M/s. Machar Aluminium Co. Ltd.
Mattur, Danau – 636 402
3) M/s.
Indian Aluminium Co. Ltd.
Mirakud, Sambalapur, Orissa
4)
M/s.Bharat Aluminium Co. Ltd.
Korba, Chhattisgarh
5) M/s.
National Aluminium Co. Ltd.
Angul, Orissa.
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