Project Profile
- HEAT TREATMENT OF COLD WORK OR HOT WORK
Introduction
Hot work
tool steels are well suited for manufacturing dies for hot
forgings, hot extrusion and for die casting dies. Cold work
tool steels are mainly employed for making tools intended
for cold work applications such as reamers, taps, press blanking,
stamping dies etc. There are many cold work tool and hot work
tool steels are there but properly known ones are as follows:
Cold work tool steels
Cold work
High carbon and high chromium tool steels composition 1.50
– 2.35% carbon 12.00 % chromium 1.00% Molybdenum , 1.00%
vanadium, 3.00% cobal,4,.\.00% vanadium
Hot work tool steels
1)
Chromium base hot work steels: 0.35-0.55% carbon, 1.50% Molybdenum,
5.00-7.00% chromium,
5.00-7.00% Tungsten, 1% vanadium
2)
Tungsten Base Hot work tool steel: 18:4:1
18%
Tungsten 4% chromium 1% vanadium
3)
Molybdenum base hot work tool steel: 5.00-8.00% Molybdenum,
4% chromium, 1.00-2.00% vanadium, 1.00-6.00%
Tungsten
Market Potential
Due to red
hardness, wear resistance, erosion resistance thermal cracking
and other properties the hot work tools and due to non-deforming,
non-distorting and other properties the cold work tool steels
are find good market. In the State of Kerala, some units may
come up for fulfilling the needs of Heat treatment of die
manufacturers.
Bases and Presumption:
Working hours/shift:
8 No. of shift per day: One Working days in year: --------------300
Capacity utilization:
-----------------------------------------------------------------75%
Labour charges:
As per Market Privilege
Margin money:
25% of the total Investment Rate of Interest on total investment:
-----14%
Repayment
period of the project: ---------------------------------------------------8
years
Value of machinery
and equipment estimated on the basis of the prevailing market.
Implementation Schedule
Project
implementation will take a period of 8 months from the date
of approval of scheme. Break up of activities with time period
is shown below:
Sl.No. |
Nature 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 |
1-4 |
4 |
Clearance from Pollution Control Board |
2-3 |
5 |
Approach for finance |
4-5 |
6 |
Placement of order for delivery of machinery |
5-6 |
7 |
Installation of machinery |
6-7 |
8 |
Power connection |
6-7 |
9 |
Trial run |
7-8 |
10 |
Commercial production |
9th months onwards |
Technical Aspects:
Process of Heat treatment
The heat
treatment process for hot work tool steels and cold work tool
steel involves
1)
These steels are to be heated to hardening temperature in
stages for minimizing the problems of oxidation,
decarburisation and grain growth. Hardening temperature for
cold work and hot work tool steels are 1010°C
- 1350 °C
2) These
tool steels are to be preheated at 800 C and then quickly
transferred to another salt bath furnace maintained
at required hardening temperature depending upon the grade
of steel.
3) Holding
time at 800 C is calculated on the basis of 20-30 seconds
per millimeter thickness or diameter of the tool.
The holding time at final hardening temperature is less and
rarely exceeds 5 minutes. Salt bath furnaces are preferred
in order to avoid oxidation or decarburisation.
4) Heated
steels are to be quenched in oil or stream of air or in salt
bath
5) Quenched
tool steels are subjected to sub zero treatment because of
retained Austenite along with marten site
6) Immediately
after sub zero treatment or quenching tool steels multistage
Tempering is to be carried out at about 200-550,
for cold work tool steels and At about 550° C for hot
work tool steels for obtaining required hardness
and other properties
7) The
jobs are to be tested for hardness if it is possible microstructure
also.
8) Quality
specification: The quality standards are as per requirements
of the user and depend on the heat treatment
procedure adopted on the basis of composition of the tool
steels.
Heat treatment cycle :
IMAGE HERE
Production capacity:
Quantity : 20
MT
Value :
Rs.
37.80 In lakhs
Motive Power Requirement:
Total Motive
power requirement is 6
H.P.
Pollution Control:
The unit
has to take into consideration the anti pollution measure
for disposal of chemicals. The unit has to obtain no objection
certificate from State Pollution Control Board. Working shed
should be well ventilated and should be proper arrangements
to be made for smoke and effluent from the furnace.
Energy Conservation:
Proper steps
to be taken for designing the furnace so that it will give
the lowest oil consumption. Proper insulation to be done to
the furnace for reducing the heat losses. Proper air and fuel
ratio should be maintained. The standard burners accessories
should be used. Effective utilization of the furnace for reducing
the heat losses. Automatic pyrometer control should be fitted
to maintain the proper furnace temperature. Timely preventive
maintenance should be carried out for cleaning the burners
etc.
Financial Aspects:
1) Fixed Capital
2) i) Land and Building
50 sq. meter
shed on rent @ Rs.200 per sq. meter Rs.10,000
ii) Machinery and Equipment
Sl.No. |
Description |
Qty |
Rate (Rs.) |
Amount (Rs.) |
1 |
Salt bath furnaces pot size of 600 x 600x450 mm deep
with 3 HP motor Blower and accessories |
2 |
1,00,000 |
2,00,000 |
2 |
Quenching tanks 60x600x60 mm with rolling and quenching
arrangements etc. |
2 |
25,000 |
50,000 |
3 |
Hardness tester (Rockwell) |
1 |
25,000 |
25,000 |
4 |
Metallurgical Microscope |
1 |
60,000 |
60,000 |
5 |
1 HP Bench Grinder |
1 |
15,000 |
15,000 |
6 |
Other Handling equipments, fixtures, hooks, job hanging
pots for salts, bending wire , hoist etc. |
L.S. |
- |
2,00,000 |
7 |
Office furniture |
L.S. |
- |
25,000 |
8 |
Installation and Electrification charges @ 10% of the
Machinery |
|
- |
60,000 |
|
Total |
|
|
6,35,000 |
iii) Preliminary
and pre-operative expenses like legal expenses,
Establishments
cost, travel ling, start up expenses, consultancy
Fee, estimate
fee, service connection charges, trial run expenses
Interest up
to commercial production 20,000
Working Capital per month:
A. Staff and Labour
Sl.No. |
Designation |
No.of persons |
Salary(Rs.) |
Total (Rs.) |
| 1 |
Metallurgist |
1 |
8,000 |
8,000 |
| 2 |
Skilled Worker |
3 |
4,000 |
12,000 |
| 3 |
Unskilled Worker |
6 |
3,000 |
18,000 |
| 4 |
Accountant and Office Assistant |
1 |
3,500 |
3,500 |
| 5 |
Watchman / Peon |
1 |
2,500 |
2,500 |
| |
Additional perquisites @ 10% of the salaries |
|
|
4,400 |
|
Total |
|
|
48,400 |
B. Raw materials and consumables
1 |
Quenching Salts/Oil |
L.S. |
60,000 |
2 |
GI Wire and other Consumables |
L.S. |
5,000 |
|
|
|
65,000 |
C. Utilities
| 1 |
Power 6,700 KWH @ Rs.400 |
26,800 |
| 2 |
Water Charges |
1,000 |
| 3 |
Fuel 3 KL @ Rs.17,000v per KL |
51,000 |
| |
|
78,800 |
D. Other Contingent expenses
| Transportation expenses |
3,000 |
| Repair and Maintenance |
5,000 |
| Postage, Telephone, Stationery |
2,000 |
| Advertisement and publicity |
1,000 |
| Miscellaneous |
1,000 |
| Total |
12,000 |
Working Capital per month
1 |
Personnel |
48,400 |
2 |
Raw materials and consumables |
65,000 |
3 |
Utilities |
78,800 |
4 |
Other contingent expenses |
12,000 |
5 |
Rent |
10,000 |
|
Total |
2,14,200 |
Total Capital Investment
1 |
Fixed Capital |
6,55,000 |
2 |
Working Capital for three months |
6,42,600 |
|
Total |
12,97,600 |
|
Say |
12,98,000 |
FINANCIAL ANALYSIS
Cost of Production per year
1 |
Total recurring cost |
25,70,400 |
2 |
Rent |
1,20,000 |
3 |
Depreciation on furnace, office equipments, fixtures,
jigs @ 20 |
86,000 |
4 |
Depreciation on Machinery and equipment @ 10% |
21,000 |
5 |
Interest on total investment % @ 14% |
1,81,720 |
|
Total |
29,89,120 |
Turnover per year
Heat treatment
of Tool Steel of 20 MT @ Rs.190/kg 38,00,000
Profit (per annum)
= Turnover
– Cost of Production
= 38,00,000
– 29,79,120
= Rs. 8,20,880/-
Net Profit Ratio
= Profit
per annum x 100 / Turnover
= 8,2 0,880
x 100 / 37,80,000
= 21.72%
Rate of Return on Investment
= Profit
x 100 / Total Investment
= 8,20,880
x 100 / 12,98,000
= 63.24%
Breakeven point
Fixed Cost
Rent --------------------------------1,20,000
Depreciation
on machinery ----------1,06,000
Interest on
Capital-------------------1,81,720
40% personnel----------------------2,32,320
40% other
contingencies------------57,600
40% Utilities------------------------3,78,240
Total 10,75,880
Breakeven point
= Fixed Cost
x 100 / Fixed Cost + Profit
= 10,75,880
x 100 / 10,75,880 + 8,20,880
= 56.72%
NAMES AND ADDRESS OF MACHINERY SUPPLIERS
Machinery Suppliers
1) M/s.
Associated Furnaces
M.O.
Office No.8C-3 1st Floor
Main
Road, Wazirpur Industrial Area
Delhi-110
052 Email_hitech@associated furnaces com
2) M/s.
H.T. Makhin Jani & Associates
G6
Gitan Jali, Behind Radio Club, Colaba, Bombay-400 005
3) M/s.
Encon International Pvt. Ltd.
14/6
Mathura Road, Faridabad-121003, Haryana State
Testing Machinery Suppliers
1) M/s.
Chennai Metro (Pvt.) Ltd.
Sp
100A, Ambattur, Industrial Estate
Chennai
– 600 058
2) M/s.
Fine Testing Machines
Sales
& Service, 359, Lake Town
Block
‘A’ Kolkata – 700 085
|