Project Profile
- FORGED ITMES
Introduction
Forging
is a process of metal forming in which hot metal at particular
temperature is pressed in die at particular pressure. Forging
may be carried out in either open or closed die. In open forging,
flat dies are used whereas in closed forging, dies of intricate
shape are used. Dies are prepared by special steel and suitably
heat treated to have proper hardness and toughness so that
these are capable of pressing the hot metal in without any
deformation in the die during forging. In open forging, metal
takes the shape of the die. The properties of forged items
are considered to be better than other metal forming processes.
Forged items are generally used in automobiles, railways,
mining, agricultural implements, power generation etc. Rolls,
shafts, gear blanks connecting rods, hooks, hubs, brackets,
chain link, hand tools, fasteners, pins, hammer, pick axe,
plough etc. are main forged items.
Market Potential
Forged items
are generally consumed in industrial product used in various
fields as mentioned above. Due to its vast applications in
different industries sector, market prospect of forged items
is considered to be very good. Automobile industry is growing
very fast in the country, which is the major consumer of forged
items. So the future prospect of the forging unit is very
bright.
Basis and Presumptions
1. The
unit will run single shift of 8 hours and utilize 60% of its
capacity in the first year. However, for calculation purpose
cent percent capacity utilization has been considered.
2. 25%
margin money is required by the promoter
3. Interest
rate on total investment has been considered as 18%.
4. Payback
period will be of 5 years with a moratorium of one year
5. The
land and labour costs are considered at the prevailing rates
Implementation Schedule
Sl.No. |
Description |
Periods (In
Weeks) |
1 |
Time required for preparation of project report |
4 |
2 |
Selection of site |
2 |
3 |
Obtaining Provisional registration certificate |
1 |
4 |
Obtaining term loan |
4 |
5 |
Procurement of machinery |
4 |
6 |
Civil Construction |
6 |
7 |
Erection and Commissioning |
4 |
8 |
Procurement of raw material and recruitment of staff |
4 |
9 |
Trial run |
1 |
|
Total |
30 weeks |
Technical Aspects
Process of Manufacture
Raw materials
such as steel ingot, bloom, bittels etc. will be cut to the
required length. Thereafter, it will be heated in oil-fired
furnace. After attaining required temperature of the stock,
it is removed from the furnace with the help of some suitable
tackles and subjected to open or closed die forging. In open
forging, several strokes are applied on the work piece so
long as it is hot and retains forging temperature. Constant
heating and forging gives the final shape of the product.
But in closed dies forging, different shapes of work piece
are prepared with the help of die. Trimming is carried out
to remove the fins on the finished product. Thereafter, normalizing
heat treatment is carried out to impart the required properties.
Production Target (per annum)
Quantity
365
M.T.
Value Rs.
Quality and Standards
Forged items
are manufactured as per the specification and also as per
customer’s specifications. Tensile testing, hardness
testing, chemical testing and metallurgical testings are required
to control the quality and standards of forged items. A full-fledged
laboratory having chemical, metallurgical and mechanical testing
facilities is essential for a forging unit.
Financial Aspects
(a) Land and Building
(b) Machinery & Equipment
Sl.No. |
Description |
Qty. (Nos,) |
Amount (Rs.) |
1 |
Pneumatic power hammer capacity-500 with 33 HP motor
and electrical accessories |
1 |
8,00,000 |
2 |
Self-contained friction drop hammer cap. 25 kg. with
25 HP motor and accessories |
1 |
5,00,000 |
3 |
Solid frame type trimming power press 60 T cap. with5
HP motor and accessories |
1 |
2,00,000 |
4 |
Oil fired pre-heating furnace with oil burners and Melting
capacity, blower, pre-heater, oil tank, valves, Strainer
and pipe line etc. |
1 |
2,00,000 |
5 |
Normalizing furnace size 1500 x 600 x 300 mm |
1 |
1,50,000 |
6 |
Shot blasting chamber with 7 HP motor |
1 |
1,50,000 |
7 |
High speed shaping machine stroke – 630 mm |
1 |
1,20,000 |
8 |
Centre lathe heavy duty with motor and accessories10’
length |
1 |
1,20,000 |
9 |
Pillar type drill machine |
1 |
15,000 |
10 |
Power hacksaw |
1 |
20,000 |
11 |
Rockwell hardness tester |
1 |
10,000 |
12 |
Double ended pedestal grinder |
1 |
4,000 |
13 |
Platform type weighing machine – 500 kg. cap. |
1 |
15,000 |
14 |
Forging dies |
L.S. |
1,00,000 |
|
Electrification and installation @ 10% Office furniture,
laboratory equipments, tools and Tables etc. Preliminary
and pre-operative expenses Total Therefore, total fixed
capital |
|
|
Recurring Expenses (per month)
(a) Raw material (per month)
1. Steel
material 35 MT @ Rs.27,000/-
2. Furnace
oil ltrs. @ Rs.34/litre
3. Die
Steel
4. Lubricants
(b) Staff and Labour (per month)
Sl.No. |
Description |
Nos. |
Values (Rs.) |
Total Salary
(Rs.) |
1 |
Manager |
1 |
10,000 |
10,000 |
2 |
Production Incharge |
1 |
8,000 |
8,000 |
3. |
Supervisor |
1 |
6,000 |
6,000 |
4. |
Skilled Worker |
3 |
4,000 |
12,000 |
5. |
Un-Skilled Worker |
4 |
3,000 |
12,000 |
6. |
Store-keeper |
1 |
5,000 |
5,000 |
7. |
Clerk |
1 |
3,000 |
3,000 |
8. |
Watchman & Peon |
2 |
2,000 |
4,000 |
|
Total |
|
|
|
|
Add perquisites @ 15% of salary |
|
|
|
|
Total |
|
|
|
(c) Utilities (per month)
1. Electricity
2. Water
(d) Other Expenses
1. Repair
and maintenance 6,000
2. Transport
expenses
20,000
3. Postage
and stationery 1,000
4. Publicity
5,000
5. Insurance
1,000
6. Telephone
charges 2,000
7. Miscellaneous
expenses 10,000
Total recurring expenses per month
= a + b
+ c + d
Therefore,
working capital for 3 months
= 3 x
= Rs.
(e) Total Capital Investment
1. Fixed
Capital
2. Working
Capital
Total
Financial Analysis
Cost of Production (per annum)
1. Recurring
expenses per annum
2. Depreciation
@ 10%
3. Interest
on total investment @ 18%
Total
or Say
Total turnover (per annum)
Sl.No. |
Items |
Qty. |
Rate |
Value (Rs.) |
1. |
Forgings |
365 MT |
40 |
|
2. |
Scrap |
42.5 MT |
4 |
|
3. |
Machining |
L.S. |
- |
|
|
Total |
|
|
|
Net Profit before Tax
1. Turnover
2. Cost
of production
Total
Net profit ratio = x
100
Rate of Return
= Net profit
x 100 / Total Investment
= x
100 /
= %
Breakeven Analysis
Fixed Cost
Rs.
1. Depreciation
2. Interest
3. 40%
salary & other expenses
Total
Breakeven Point
= Fixed Cost
x 100 / Fixed Cost + Profit
= x
100 /
= %
Addresses of Machinery and Equipment Suppliers
1. Standard
Engg. Co. Ltd.
NSE
Estate, Goregaon, Mumbai-63.
2. M/s.
Pioneer Equipment Co. (P) Ltd.
139,
Meadows Street, P.B. No.1909, Mumbai-1
3. M/s.
R.K. Tools
Industrial
Area, Ludhiana
4. M./s.
Globe Engg. Co.
2524,
C.G. Road, Delhi
5. M/s.
Engineering & Industrial Foundry Co.
Ramnagar,
Coimbatore
6. M/s.
Fuel Injection Eequiment
Ichalkuranji,
Distt. Kolhapur
7. M/s.
Acm Mfg. Co. Ltd.
Construction
House
Ballard
Estate, Mumbai
8. M/s.
Killick Nixon & o. Ltd.
Home
Street, Mumbai
9. M/s.
Banrju Chakraverty & Co. (P) Ltd.
125,
Canning Street, Calcutta
10.
M/s. Atlas Engg. Industries
G.T.
Road, Batala
Addresses of Raw Material Supplilers
1.
SAIL or local market
|