Business Plan:

Manufacturing of Industrial Valves

Technova Valves Pvt. Ltd.

Manufacturer of Industrial Valves & Automation

Submitted By:
Name 1 ​: Product & Market Analysis

Name 2 ​: Process, Machinery List, Flow Chart

Name 3 ​: Costing Tables, Fixed Assets List,

Product Cost Estimation, P& L Statement,

Name 4 ​: Location, Layout

 Page | 1

ABLE OF CONTENTS

Sr No. Particulars Pg. No.

1 Company Information 5

2 Product Details 7
Valves Industry 8

Market Research on Industrial Valves 9

Product Details 10

3 Process Details 25

Process flow 26
Cost of machines, instruments & 29
Fixtures
Process flow diagram 30

4 Project Plan 33

Project Plan 34

Quality and quantity of manpower 37

Financial analysis and BEP 38

Production and Sales 38

Raw material cost 43

Profit and Loss 44

Wages 45

Working Capital 46

Assets 46

BEP 47
5 Location and Layout 48

Selection of location 49

Plant Layout 50

Page | 3

CHAPTER 1
COMPANY INFORMATION
& Executive Summery

Page | 4

1. Company Information

Name:

Technova Valves Pvt. Ltd.

Business Structure:

Partnership firm
 Management Team:

Location:

Ahmedabad, Gujarat

Products:

Butterfly Valves

Valve type: Centric Disc Design Butterfly Valve

with a single piece Rubber lined Body (Wafer

type Butterfly Valves); Size range: 2” – 12”

Pressure rating: PN10 and PN16

Capacity : ​1 st
Yr. : ----------------- Nos.
​2nd
Yr. : --------------------- Nos.

​5th
Yr. : ____________________ Nos.
​

Page | 5
 Page | 6

CHAPTER 2
PRODUCT DETAILS
 Page | 7

2. Product Details

Valves Industry

In India, industrial valves market has been catalyzed by rising demand for power
across diverse end use sectors such as oil and gas, power, petrochemicals, etc. Oil

& gas pipeline infrastructure is undergoing considerable expansion in India and

since valves are regularly deployed in pipelines, which in turn has been driving their
sales in this sector in India. Widening demand supply gap in Indian power industry
has been driving the need for power capacity additions, which in turn is providing a
boost to valves market in the country. With policy liberalization, power sector has
been allocated with huge inflow of investments over the past few years. In the 12th
Five Year Plan (2012-17), government of India allocated 76,000 MW capacity
addition in the country’s power infrastructure. The sector also attracted ample foreign
direct investments during 2000-14, which added to the growth of industrial valves
market. On account of rising growth, other industries including chemical,
petrochemical and fertilizer have also been driving the demand for valves in the
country.

India’s valves industry, estimated at Rs. 10,000 crore, is expected to grow at 7-8 per
cent per annum after a flat growth this year and exports too will expand at a healthy
rate. Valves and actuators play a critical role in sectors such as power, oil and gas,
water, steel and cement. With the growth in infrastructure sector, demand for valves
and actuators in India has grown significantly in the last decade.

Extensive usage of brass valves for plumbing purposes in industrial and civil sectors,
mainly due to their high durability and capability to withstand high temperature and
pressure, is predicted to drive the market for brass valves. On the other hand, carbon
steel is the most commonly used material in butterfly valves and globe valves.
Increasing demand for butterfly valve and globe valve across industries such as
pharmaceuticals, food processing, and chemicals is expected to boost the global
demand for carbon steel valves.

Butterfly Valves are expected to see the highest CAGR of about 6.6% between
2014 and 2018. These valves find extensive use in downstream applications of the oil
and gas industry, paper industry, sugar industry, chemical Industry, Gas plant, Water
treatment plant.

Page | 8

All in all, to conclude that, the outlook of the global valve market is bright overall, with
opportunities in oil and gas and related industries. As end-users enhance process
automation to better manage operation costs and increase equipment intelligence,
increased demand for valves across industries is expected.

Market Research on Industrial Valves

Today, the Indian manufacturers are capable of producing high-end engineered

valves which require a lot of approvals and accreditation due to the critical nature of
services. The country has about 600 valve manufacturers, of which more than 95 per
cent are in the micro, small and medium enterprise (MSME) category.

Rajkot in Gujarat and Coimbatore in Tamil Nadu happen to be the prime centers for
valve manufacturers in India. The industry here produces different types like ball
valves, plug valves, butterfly valves among others.

Why Butterfly Valves?

A butterfly valve is a simple two-way valve with a disk that can be oriented so that it
blocks the flow or allows the flow through a pipe or tube. It is relatively simple to
manufacture as compared to other valves such as ball valves. On the other hand, ball
valve uses a ball with a port in it as the plug to either block or allow the flow and they
are more expensive to make, bigger for the same pipe size, allows unrestricted flow
when normally open and are rated for high pressure.

We had chosen Butterfly Valves because Butterfly Valves are used when you have
limited space for a valve and you are not concerned about flow losses due to disk
being in the flow path. They are also used as a control valves to limit flow and
induced pressure drops. Butterfly Valves typically pick up where ball valves stop,
which is size dependent. Ball valves can be used in all sizes, but typically stop 6”-8”
which after that butterfly valves are used as it is more economical.

Butterfly Valves require less investment cost in Patterns, Dies, and other Jigs &
Fixtures to manufacture as compared to other valves such as Ball Valves, Gate
Valves, Globe Valves, Check Valves, Knife Edge Gate Valves, and Strainers etc.

Secondly, Butterfly valves are light in weight and have less torque to shut on-off the
valves as compared to other valves as being used in manual operations.

Page | 9

We will enter into the market as an OEM Supplier or play role as vendor for the big existing
players of the Butterfly Valves. As per our market survey there are several big companies
across India who have their vendors in Ahmedabad and they are procuring
Industrial Valves as per their “Brand”

We did a proper segmentation and will be positioning our Products to the targeted companies
as mentioned below first and will be supplying Butterfly Valves as per their “Brand Name” after
which we will be expanding our market by introducing our own
“Brand”.

• Aira – Euro Automation Pvt. Ltd., Ahmedabad

• Hawa Engineers Company Ltd., Ahmedabad

• Care Engineers, Ahmedabad

• Valson Valves Pvt. Ltd., Ahmedabad

• Prime Valves Pvt. Ltd., Ahmedabad

• Zed Valves Company Pvt. Ltd., Ahmedabad

• Fluidline Valves Co. Pvt. Ltd., Mumbai

• Niton Valves Ind. Pvt. Ltd., Mumbai

• Valvinox Ind. Pvt. Ltd., Mumbai

 • Crescent Valves Pvt. Ltd., Mumbai

• Unique Engineering Enterprise, Hyderabad

• General Engineering Consortium, Bengaluru

• Fouress Engineering Company Ltd., Bengaluru

Product Details

Butterfly Valves

A Butterfly Valve is a valve which can be used for isolating or regulating flow. The
closing mechanism takes the form of a disc. Operation is similar to that of a Ball
Valve, which allows for quick shut off. Butterfly Valves are generally favoured because
they are lower in cost as compared to other valve designs as well as being lighter in
weight, meaning less support is required.

Page | 10

Specifications of Butterfly Valves

• Valve Design: Wafer Type Butterfly Valves/ Lug Type Butterfly Valves/ High
Performance Butterfly Valves /Seat less Butterfly Damper / Double Flanged
Centric Disc Butterfly Valves / Double Flanged Valves

• Operations: Lever Operated / Gear Operated / Electrical / Pneumatic / Hydraulic

Actuator

• Mounting Pad /Top Flange Drilling: As per ISO 5211 Part II

Salient Features of Butterfly Valves

• Concentric, Slim-Seal Design

 • Greater Sealing Capacity

• Soft Seat Design and Wafer Design

• Lower Torque with any fluid

• Permanently tight closure

• Bi-Directional Valve

• Optimum operation under Vacuum Condition

• Suitable for On-off as well as Throttling Service

• Materials for almost all media

• Short Face to Face Dimension

• Long Service Life, Smooth and Easy Operation

• Maintenance Free Version

• Less Weight, Easy to Install

Special options for Butterfly Valves

• Off Set Disc Design Butterfly Valve for high pressure & temperature service.

• Moulded / Replaceable Seat option

• Gear / Pneumatic Rotary Actuator Operated

• P.T.F.E. (PFA/FEP) Lined Butterfly Valve

• Flanged End, Butterfly Valve

• Damper Type Butterfly Valve for High Temperature Air Service

• Off Set Disc Design Butterfly Valve for high pressure & temperature service

• Tailor Made Valve

 Page | 11

Applications of Butterfly Valves

• Water Treatment Plant

• Paper Industry

• Sugar Industry

• Breweries

• Chemical Industry

• Waste Effluent Treatment Plant

• Drilling Rigs

• Gas Plant

• Cooling Water Circulation

• Heating & Air Conditioning

• Pneumatic Conveyors

• Compressed Air

1. Wafer Type Butterfly Valves

General Purpose Rubber Lined Butterfly Valves

These Butterfly Valves are designed to meet the demanding requirements of the
general utility valve market with the HVAC segment in particular. Our Butterfly valve
will incorporate the optimum design features to provide glitch free service in the field.
This general purpose soft seated Butterfly valve has a fully rubber lined single piece
body with centric disc construction and is available in wafer type body pattern as per
standard.

The body liner which also functions as the soft seat, comes in either a replaceable
version or an integrally moulded (bonded) version and offers 100 % bi-directional
sealing against vacuum to rated pressure of PN 10 or PN 16. The wafer style body
has universal design to fit between pipe flanges of almost all popular flange
standards respectively.

Our Butterfly Valves will be generally supplied with manual hand lever or gear
operated, depending on valve size. We will be also offering Butterfly Valves with
either Pneumatic, Hydraulic or Electrical actuator operated for automation as per
client requirements.

Page | 12

4” Wafer Type Butterfly Valve Body: CI, Disc: SGI PN10/PN16 Lever Operated
5” Wafer Type Butterfly Valve Body: CI, Disc: CF8 PN10/PN16 Lever Operated

Page | 13
 3” Investment Casting Wafer Type Butterfly Valve PN10/PN16 Body: ASTM A 216 GR: WCB,

DISC: ASTM A 351 GR: CF8, Lever

Operated

Material for construction

• Body: CI / SGI / WCB / CF8 / CF8M

• Disc: SGI / WCB / CF8 / CF8M

• Seat: EPDM / Viton / Nitrile / Neoprene / Hypalon / Silicon

• Shaft: AISI410 / SS 316 SH

6” Wafer Type Butterfly Valve Body: CI, Disc:
CF8, PN10/PN16 Lever Operated

Page | 14
10” Wafer Type Extended Stem (2500 MM) Butterfly Valve Lever Operated. Body: CI, Disc:

SGI (Nylon Coated) PN10/PN16

8” Wafer Type Butterfly Valve under Assembly and Inspection Gear Operated. Body:

CI, Disc: CF8

 Page | 15

Conformity Codes and Standards

• Design and Manufacturing Standard: API 609 category A/BS 5155/MSS SP-
67

• Testing Standard: BS 6755-I / API 598

• Face to Face: Short wafer as per ISO 5752 Tab 5 & API 609

• Top Flange Drilling: ISO 5211 part II

• Flange standard Conformity: ANSI 150, DIN PN6 / PN10 /PN16, JIS 5K /
10K / 16K BS 10 Tab D & E, IS 6392 NP 0.6 / 1.0 / 1.6 For sizes 650 ANSI B
16.47 Class 150 Series A / BS 3293 Class 150 and Series B / API 605

10” Nylon Coated Disc Butterfly Valve Wafer Type Design, As

per ISO Mounting Pad, Easy to mount Actuator and Gear Box,
PN10/PN16
Technical Specifications

• Valve Type: Centric Disc Design Butterfly valve with a single piece Rubber
lined body

• Body Type: Short Wafer

• Seat Type: Bonded seat for sizes 50 to 300 NB for all applicable ratings.

• End Connection: Wafer sandwiched

• Size Range: 50 NB to 300 NB

Page | 16

• Pressure Rating: 50 NB to 600 NB-PN16 (maximum)

• Operating Temperature Range: -500 C to 2000 C (depending on MOC)

• Seat Leakage: Tight Shut Off

• Operation: Lever / Gear operated, Pneumatic/ Hydraulic/ Electrical Actuator

operated

Standard Test

• Body Test: 1.5 times the working pressure with water. This test is performed after
valve assembly and with disc in half position open, it is called as a body hydro
test.

• Seat Test: 1.5 times the working pressure with water.

• Function / Operation Test: At the time of final inspection, each valve and its
actuator (Flow-Control Lever / Gear / Pneumatic Actuator), under goes a
complete operating test (Open/Close). This test carried out without pressure and
at ambient temperature. It ensures the correct operation of the valve / actuator
assembly with accessories such as solenoid valve, limit switches, air filter
regulator etc.

• Special Test: On request, any other test can be carried out according to special
instruction by client.
 Key Features of Wafer Type Butterfly Valves

• Seat liner extending on to the flange contact faces, eliminates the need for
separate flange gaskets during installation.

• Controlled compression of the gasket face to offer optimum sealing & prevent
gasket face crushing failure.

• Bi-directional valve with tight shut off sealing capability to hold vacuum to rated
pressure in either direction.

• Excellent adaptability for actuated operation through standardized top flange

mounting dimensions for actuator fitment.

• Suitability for ON /OFF as well as throttling duties.

• Choice of seat and disc materials to suit media conditions and service
requirements.

• Adaptability to fit between companion flanges of all popular flange standards for
the wafer style body.

Page | 17

Bill of Material and Costing Calculation

BUTTER FLY VALVE BILL OF MATERIAL AND COSTING CALCULATION

SIZE: 2" BUTTERFLY VALVE WAFER TYPE OF MATERIAL BODY: CAST IRON(CI) , DISC:
DESIGN SGI

SR CASTING TOTAL CONTACT

PART DIMENSION WEIGHT PRICE VENDOR/SUPPLIER
NO. RATE NO
INR

1 BODY AS PER PATTERN 2.35 KGs 54 127 NAVAL FOUNDARY 079-

22746321

2 BODY MACHINING AS PER DRAWING ------ ------- 25 LAXMI ENGINEERS 9825150213

3 RUBBER MOULDING AS PER DIE ----- ------ 65 IN HOUSE

4 BODY PAINT BLUE COLOUR ---- ------ 15 IN HOUSE

5 DISC(FLAPPER) AS PER PATTERN 0.2500KGs 65 16 KRISHNA 9426039731

CASTING FOUNDARY

6 DISC MACHINING AS PER DRAWING ----- ------- 20 LAXMI ENGINEERS 9825150213

DISC POWDER
7 COATING BLACK COLOUR ----- ------- 8 PARTH POWER 9727427722

COAT COAT

8 STEM PIN SS410 TOP Ø12MM x 130MM ----- ------- 30 NAVKAR TUBES
LENGTH

9 STEM PIN SS410 Ø12MM x 90MM ----- ------- 20 NAVKAR TUBES

BOTTOM LENGTH

10 TAPER PIN SS304 Ø5MM x 28MM ----- ------- 10 SHREENATH ENT.

LENGTH

MS SPRING DOWEL
11 PIN Ø5MM x 33MM ----- ------- 5 SHREENATH ENT.
LENGTH

12 D U BUSH Ø14MM x Ø12MM x ----- ------- 9 SVB BEARINGS 9818360300

15MM LENGTH

13 DELRINE BUSH Ø17MM x Ø12MM x ----- ------- 2 Shree Ganesh 9327069517

9MM LENGTH Plastic

14 "O"RING BODY GLAND Ø5MM x 28MM ----- ------- 3 GUJARAT RUBBER

CFT LENGTH

15 "O"RING BOTTOM PIN Ø9MM x 1.5MM ----- ------- 3 GUJARAT RUBBER

CFT LENGTH

RHOMBUS 34MM
16 CFT TEFLON SHEET Lx ----- ------- 15 SHREE CHAMUNDA
BOTTOM PIN 16MM H x 0.5MM T

17 HANDLE & LOCKING ----- ------- 75 ASHOK 079-

INDUSTRIES 22201153

HANDLE POWDER
18 COAT BLACK COLOUR ----- ------- 10 PARTH POWER 9727427722
COAT COAT

19 LOCKING PLATE ZINC ----- ------- 3 AMI 9998147909

COAT ELECTROPLATTER

LN KEY M6 x 25 BOLT +1
20 BOLT+NUT+SPRING NUT+SPRING ----- ------- 15 SHREENATH ENT.
WASHERSS 202 WASHER

21 LN KEY BOLT & NUT ----- ------- 2 AMI 9998147909

ZINC COATING ELECTROPLATTER
Note: The above table shows the bill of material and costing calculation for 2”
Butterfly Valve and is subjected to change depending upon the required
specifications.

For costing of Butterfly Valves up to 12” the Bill of Material will remain same.

Except Body and Disc the dimensions of all materials of valve size (2”, 2½”,
3”), (4”&5”), (6”&8”), (10”&12”) are same.

Page | 18

For Example: Dimensions of all trims will be same (standard) such as fasteners,
shafts etc. Likewise they are same for 2”, 2½”, 3” respectively. Similarly for 4”&5”
are same, 6”&8” are same, 10”&12” are same.

Costing Calculation

COSTING CALCULATION

PART: BODY (CAST IRON)

CASTING
SIZE WEIGHT IN CASTING MACHINING MOULDING COLOUR TOTAL
RATE(RS 54) PRICE PRICE PRICE PRICE INR
KGs

2" 2.35 127 25 65 15 224

2½" 2.75 149 30 75 15 259
3" 3 162 35 100 15 303
4" 4.25 230 40 125 20 401
5" 6.15 332 45 175 20 552
6" 7.15 386 60 225 20 671
8" 9.65 521 75 315 20 902
10" 24 1296 150 450 35 1781
 PART: DISC (FLAPPER) (SGI)
CASTIN
CASTING G POWDER TOTAL TOTAL

RATE(R PRICE PRICE

SIZE WEIGHT S MACHINING COATING NYLON INR INR
PRICE COATING WITH WITH
IN KGs 65) PRICE
POWDER NYLON

2" 0.25 16.25 20 8 100 44.25 136.25

2½" 0.35 22.75 25 8 120 55.75 167.75
3" 0.5 32.5 25 8 155 65.5 212.5
4" 0.75 48.75 35 10 225 93.75 308.75
5" 1.15 74.75 35 10 310 119.75 419.75
6" 1.5 97.5 55 20 415 172.5 567.5
8" 2.75 178.75 60 20 675 258.75 913.75
10" 4.75 308.75 115 50 1000 473.75 1423.75

Page | 19

PART: DISC (FLAPPER) (CF8 SS304)/(CF8M SS316)

CASTIN CASTIN TOTAL TOTAL
CASTING ELECTRO PRICE
SIZ G MACHINING G PRICE
WEIGHT PLATTIN INR
E RATE(R PRICE RATE(R INR CF8
IN KGs G PRICE CF8M
S 280) S 330) DISC
DISC

2" 0.16 44.8 25 1.28 52.8 71.08 79.08

2½" 0.24 67.2 30 1.92 79.2 99.12 111.12
3" 0.35 98 35 2.8 115.5 135.8 153.3
4" 0.56 156.8 40 4.48 184.8 201.28 229.28
5" 0.85 238 40 6.8 280.5 284.8 327.3
6" 1.35 378 60 10.8 445.5 448.8 516.3
8" 2.45 686 65 19.6 808.5 770.6 893.1
10" 4.65 1302 120 37.2 1534.5 1459.2 1691.7

BUTTER FLY VALVES PRICE LIST BODY: CI DISC: SGI(POWDER COAT)

BODY SGI DISC
WITH FITTING FITTING
SIZE COMPLETE TOTAL PRICE INR
POWDER PARTS CHARGE
NBR
COAT

2" 224 44.25 202 50 521

2½" 259 55.75 202 50 567

3" 303 65.5 202 50 621

4" 401 93.75 280 75 850
5" 552 119.75 280 75 1026

6" 671 172.5 376 100 1319

8" 902 258.75 376 100 1636

10" 1781 473.75 729 150 3134

BUTTER FLY VALVES PRICE LIST BODY: CI DISC: SS 304/SS 316

BODY CF8/CF8M FITTIN TOTAL
DISC WITH FITTING G TOTAL PRICE
SIZE COMPLETE PRICE INR
ELECTRO PARTS CHARG INR CF8 DISC
NBR PLATT E CF8 DISC

2" 224 71.08 202 50 547 555

2½" 259 99.12 202 50 610 622

3" 303 135.8 202 50 691 708

4" 401 201.28 280 75 957 985

5" 552 284.8 280 75 1191 1234

6" 671 448.8 376 100 1595 1663
8" 902 770.6 376 100 2148 2271

10" 1781 1459.2 729 150 4119 4352

Page | 20

Price List of Butterfly Valves

 BUTTERFLY VALVE WAFER TYPE DESIGN PN10/PN16 PRICE LIST

BODY: CAST IRON (CI) DISC(FLAPPER): SPONGE IRON (SGI) WITH POWDER COATING OF FLAPPER

SIZE ​NET PRICE (INR)

2" (50 MM) RS 705/-

2½" (65 MM) RS 765/-

3" (80 MM) RS 840/-

4" (100 MM) RS 1150/-

5" (125 MM) RS 1390/-

6" (150 MM) RS 1785/-

8" (200 MM) RS 2210/-

10" (250 MM) RS 4500/-

BODY: CAST IRON (CI) ​

DISC(FLAPPER): CF8 (SS 304)/CF8M (SS 316) WITH ELECTRO PLATTING

SIZE NET PRICE (INR)

2" (50 MM) (SS 304) RS 740/- &
(SS 316) RS 750/-

2½" (65 MM) (SS 304) RS 825/- &

(SS 316)RS 840/-

3" (80 MM) (SS 304) RS 935/- &

(SS 316)RS 960/-

4" (100 MM) (SS 304) RS 1300/- &

(SS 316)RS 1330/-

5" (125 MM) (SS 304) RS 1610/- &

(SS 316)RS 1670/-

6" (150 MM) (SS 304) RS 2160/- &

(SS 316)RS 2250/-

8" (200 MM) (SS 304) RS 2950/- &

(SS 316)RS 3150/-

10" (250 MM) (SS 304 ) RS 5575/- &

(SS 316)RS 5900/-

PACKING & FORWARDING: AS APPLICABLE

VAT 5% AS APPLICABLE
TAX
CST 2% AGAINST ''C'' FORM
EXCISE: As Per Applicable
24 MONTHS OF TROUBLE FREE
PERFORMANCE FROM THE DATE
 OF SHIPMENT OR 12 MONTH

FROM THE DATE OF

GUARANTEE: COMMISSIONING WHICHEVER
EARLIER SHALL BE SUPPLIED.
NOTE: ITS APPLICABLE FOR THE
VALVES USED FOR SUITABLE
APPLICATION.
SPECIFICATION: AS PER STANDARD

Page | 21

2. Lug type Butterfly Valves (Future Plan to

Manufacture) General Purpose Rubber Lined Butterfly
Valves Conformity Codes and Standards

• Design and Manufacturing Standard: API 609 category A/BS 5155/MSS SP-67

• Testing Standard : BS 6755-I / API 598

• Face to Face : Short wafer lugged as per ISO 5752 Tab 5 & API 609 category A

• Top Flange Drilling : ISO 5211 part II

• Flange standard conformity : ANSI 150, DIN PN6 / PN10 /PN16 , JIS 5K / 10K /
16K BS 10 Tab D & E, IS 6392 NP 0.6 / 1.0 / 1.6 For sizes 650 ANSI B 16.47
Class 150 Series A / BS 3293 Class 150 and Series B / API 605
Material of Construction

• Body : CI / SGI / WCB / CF8 / CF8M

• Disc : SGI / WCB / CF8 / CF8M

• Seat : EPDM / Viton / Nitrile / Neoprene / Hypalon / Silicon

• Shaft : AISI410 / SS 316 SH

Page | 22

Standard Test

• Body Test: 1.5 times the working pressure with water. This test is performed after
valve assembly and with disc in half position open, it is called as a body hydro
test.

• Seat Test: 1.5 times the working pressure with water.

• Function / Operation Test: At the time of final inspection, each valve and its
actuator (Flow-Control Lever / Gear / Pneumatic Actuator), under goes a
complete operating test (Open/Close). This test carried out without pressure and
at ambient temperature. It ensures the correct operation of the valve / actuator
 assembly with accessories such as solenoid valve, limit switches, air filter
regulator etc.

• Special Test: On request, any other test can be carried out according to special
instruction by client.

Technical Specifications

• Valve Type : Centric Disc Design Butterfly valve with a single piece Rubber lined
body

• Body Type : Wafer Lugged

• Seat Type: Bonded seat for sizes 40 to 1200 NB for all applicable ratings.

• End Connection : Wafer Lugged

• Size Range : 50 NB to 300 NB

• Pressure Rating : 50 NB to 300 NB-PN16 (maximum)

• Operating Temperature Range : -500 C to 2000 C (depending on MOC)

• Seat Leakage : Tight Shut Off

• Operation : Lever / Gear operated, Pneumatic/ Hydraulic/ Electrical Actuator

operated

Key features of Lug Type Butterfly Valves

• Unique triple sealing system for shaft sealing, eliminates any fugitive emission or
secondary leakage.

• Self-lubricated PTFE lined bearings for both drive end and non-drive end shaft
ensures minimum bearing friction torque.

• Seat liner extending on to the flange contact faces, eliminates the need for
separate flange gaskets during installation.

Page | 23

• Controlled compression of the gasket face to offer optimum sealing & prevent
gasket face crushing failure.

• Bi-directional valve with tight shut off sealing capability to hold vacuum to rated
 pressure in either direction.

• Excellent adaptability for actuated operation through standardized top flange

mounting dimensions for actuator fitment.

• Suitability for ON /OFF as well as throttling duties.

• Choice of seat and disc materials to suit media conditions and service
requirements.

• The lugged wafer pattern ensures precise self-centering of valve between mating
flanges.

• Possibility of lower seat rating to obtain reduced operating torque and extended
seat life for low operating pressures.
 Page | 24

CHAPTER 3
PROCESS DETAILS
 Page | 25

4. Process Flow

Raw Materials
 Following are the raw materials we are going to procure:

▪
Body: As per our Pattern and Die we will be procuring casting of Butterfly
Valve Body which will be CI, WCB, CF8, CF8M respectively as per
requirements. We will procure CI & WCB from Sand Casting Foundry and CF8
& CF8M from Investment Casting foundry.
▪
Disc/Flapper: As per our Pattern and Die we will be procuring casting of
Butterfly Valve Disc which will be SGI, WCB, CF8, CF8M respectively as per
requirements. We will procure SGI & WCB from Sand Casting Foundry and
CF8 & CF8M from Investment Casting foundry.
▪

Stem: We will be procuring the CA15 (SS 410) bar rods for the following
diameters 12mm, 16mm, 20mm & 25mm respectively for 2”-12” Butterfly
Valves respectively.

Rubber: We will be procuring the following rubbers as per our requirements EPDM,
Viton, Nitrile, Neoprene, Hypalon, and Silicon for rubber moulding operations on Seat.

Trims: We will be procuring others trims which will be required for Manufacturing Butterfly
Valves such “O” Rings, Handles, Fasteners, Locking

Plates, ​D ​U ​Bush, ​Delrine ​Bush, ​Circlip,

​Carbon-Strip.

Machining

The machining operation performed on the various parts of the valve are as follows:

▪
Body: Operations such as turning, grooving, drilling, boring and finishing are
performed on body as per drawing.
▪
Disc: Operations such as turning, drilling, and finishing are performed on Disc
as per drawing.
▪

Stem (Spindle): Operations such as cutting, turning, and milling are

performed as per drawing.
 Page | 26

Rubber-Moulding

The rubber moulding operation is performed on Butterfly Valve Body by

procuring rubber such as Nitrile, EPDM or Viton and then undergone a
heating under compressing of dies and rubber gets bonded with the body.

Heavy Duty Lathe Machine for Performing

Operations such as Turning, Grooving, Boring and
Finishing on Butterfly Valve Body and Disc.
Secondly turning operation on Spindle can also be
done
 Milling Fixture on Lathe Machine for
Spindle Operation Drilling
Machine to be performed
on Body and Disc

Page | 27

Assembly

​
After all the machining operations are

table lathe with the help of jigs Smooth operation.

the Butterfly valve is assembled on a and fixtures so as to undergone

 Testing

The testing facility is to ensure the high standards that meet our customers’ demands.
Each and every single product that we will manufacture or supply will undergo
extensive testing before being dispatched for delivery. Butterfly Valve will be
undergoing a hydraulic and pneumatic test on the test bench in order to inspect
leakage. Hydraulic Test is carried at 16kg Pressure and Pneumatic at 5kg pressure.

Painting

Painting is to be done to meet a wide range of customer’s specifications varying from

single coat system to typically multifaceted and perilous multi coat epoxy systems for
offshore environment. All products will painted under the supervision of our Quality
Control department in customized high efficiency which regulates the coating
thickness as per requirement and avoids overspray. Separate blast media are used to
prevent free-iron contamination of stainless steel products.

Inspection

Inspection will carried out once the valve is ready. The face to face of the valve,
aesthetics, torque and other standard parameter will be inspected.

Packaging & Dispatch

The selection and specification of valve packing is as complex as selecting the

correct type of valve for the service. Machined surfaces are protected with wood and
fully corrosion protective. Sensitive instruments such as Hand-wheel, lever or others
are packed separately. Packing is performed as per customer’s requirement with
well-established and approved packing procedure. We will also attached detailed
packing list in transparent waterproof envelope outside and inside the box or
package as per customers requirement

Page | 28

Table 1 : List & Cost of Machines, Instruments & Fixtures

The approximate cost of machines, instruments & Fixtures are as follows:

Serial Machine Name Qty Cost Total

(INR) (INR)
No

1 Heavy Duty Lathe Machine 12" 2 250000 500000

2 Medium Duty Lathe Machine 9" 3 175000 525000
3 Light Duty Lathe Machine 4 125000 500000
 4 Milling Fixture (For Slotting) 1 100000 100000

5 Rubber Moulding Machine 3 150000 450000

6 Hydraulic Hacksaw Machine (Cutting Machine) 1 50000 50000
7 Air Compressor 1 50000 50000

8 Radial Drill Machine All Geared 1 350000 350000

9 Manual Feed Drilling cum Tapping Machine 1 100000 100000

10 Bench Grinder 1 3000 3000

11 Bosch Hand Grinding machine 4 2000 8000

12 Automatic Valves Testing Machine and fixtures set 1 750000 750000

13 Mitutoyo Vernier Calliper 6 5000 30000

14 Air Gun (for Cleaning) 10 200 2000

15 Drill Bits and Tapper Bits Set 2 3000 6000

16 Table Lathe 6 7500 45000

17 Spray Paint Machine 1 3500 3500
18 Bosch Screw Driver, Allen Key Set 2 1500 3000

19 Weighing Machine 1 10000 10000

Butterfly Valves Body Aluminum Pattern (2"-12")
20 each of Wafer Type Pattern and Lug Type Pattern 2 300000 600000
Butterfly Valves Disc Aluminum Pattern (2"-12")
21 each 1 100000 100000

22 Butterfly Valves Disc Aluminum Dies (2"-12") each 1 100000 100000

23 Butterfly Valves Rubber Moulding Dies (2"-12") each 1 100000 100000

24 Jigs and Fixtures Set (2"-12") each 1 50000 50000

Page | 29

Process Flow Diagram

 Butterfly

Valves

Pattern & Die of Body

Casting of Butterfly Valve Body: Cast Iron

& Disc

Disc: SGI

Machining of Butterfly Valve Body &

Disc as per Drawing

Rubber Moulding on Butterfly Valve Body ​

Assembly of
Butterfly Valves
Testing of Butterfly Valves

Page | 30

Paint on Butterfly Valves

 Inspection of Butterfly Valves

Butterfly Valve Packed & Ready for Dispatch

Page | 31
 Casting (on our
Pattern or Die)

Machining (as per

Drawing)

Rubber Moulding
of Body

Assembly

Hydraulic &
Pneumatic
Testing

Painting

Inspection

Packaging &
Dispatch
Page | 32
 CHAPTER 4
PROJECT PLAN
 Page | 33

4. Project Plan

We have planned our project accordingly.

Year I

Initially in the first six months, we will be buying a land and will build it up as per our
requirements where it is necessary. We will be investing in machinery, instruments,
jigs & fixtures, patterns & dies and all the necessary small equipment’s that will be
required in order to manufacture the product. At the end of six months when the set-
up is ready, we will start our manufacturing. However, during these six months we will
not be utilizing our full capacity, instead we will be focusing on strategic development
of our production for future. During this period, we will be carrying out processes such
as Rubber Moulding, Painting and testing in our premises whereas, rest will be
st
outsourced from our vendors such as Machining of Body, Disc & Spindle. In the 1
st
Year, our manufacturing starts from the 1 day of seventh month and we will start
manufacturing around 2400 Valves per month. Our production will increase every
month as per sales forecasting and so on.

st
Given below are the production details of 1 month:

Wafer Type Butterfly Valves PN10/PN16

Body : CI , Disc: CF8 Body : CI , Disc: SGI
Size
Total Price Qty Qty Price Total

148000 740 200 2" 200 705 141000

123750 825 150 2½" 150 765 114750

187000 935 200 3" 200 840 168000

260000 1300 200 4" 200 1150 230000

80500 1610 50 5" 50 1390 69500

216000 2160 100 6" 100 1785 178500

295000 2950 100 8" 100 2210 221000

557500 5575 100 10" 100 4500 450000

800000 8000 100 12" 100 6750 675000

2667750 Total Total 2247750

Total Number of valves to be manufactured in the 1st month = 2400

Value of the Valves to be manufactures in 1st month = Rs. 4,915,500

Our expected sales for the 1st month will be = Rs. 4,500,000
 Page | 34

Note: We will gain a credit period of 30 days from our suppliers, vendors and we will
give a credit period of 30 days to our customers.

Year 1

(First Six Months): Only set up, no production.

(Next Six Months): Our expected Sales will be as

follows: Opening Stock: Rs 0

Sales: Rs 38,331,000

Closing Stock: Rs 1,916,550

st
At the end of 1 Year we had Sales Turnover = Rs 38,331,000
Finished Goods Closing Stock = Rs 1,916,550

Year II

nd
In 2 Year we will be utilizing our 75% capacity.
Opening Stock: Rs 1,916,550

Sales Turnover: Rs 43,049,600

Closing Stock: Rs 2,152,480

Year III

rd
In 3 Year we will be utilizing our 90% capacity.
Opening Stock: Rs 2,152,480

Sales Turnover: Rs 48,664,300

Closing Stock: Rs 2,433,215

Year IV

th
In the 4 Year we will be utilizing 100% capacity.

Page | 35

Opening Stock: Rs. 2,433,215

Sales Turnover: Rs. 55,289,750

Closing Stock: Rs. 1,105,795

Year V

th
In 5 Year we are introducing our new product Lug Type Butterfly Valve. As we are
already manufacturing our old product Wafer Type Butterfly Valve, and we are
utilizing our full plant capacity as well as outsourcing of machining process from
vendors also. For the new product during initial phases, we will outsource its
machining, moulding from our vendors and only do the assembly in house.

Opening Stock: Rs 1,105,795

Sales Turnover: Rs 77,090,000

Closing Stock: Rs 1,541,800

 Page | 36

Table 2 : Manpower

Particulars Year I Year II Year III Year IV Year V

Administration S US S US S US S US S US

Accountant 1 1 2 2 2
Purchase Manager 1 1 1 1 1
HR 1 1 1 1 1
Clerk 1 1 2 2 2
Factory
Production Manager 1 1 1 1 1
Quality Inspector 1 1 1 1 1
Logistic and Invoicing 1 1 1 1 1
Supervisor 1 1 2 2 3
Storekeeper 1 1 1 1 1
Workers 12 2 14 3 19 4 22 4 24 5
Total 21 2 23 3 31 4 34 4 37 5
Grand Total 23 26 35 38 42

S = Skilled Employee
US = Unskilled Employee

Machine Name Year I Year II Year III Year IV Year V

S US S US S US S US S US

Lathe Machine 1 1 3 1 5 2 7 2 9 3
Rubber Moulding Machine 3 3 1 3 1 3 1 3 1
Drilling Machine 1 1 2 2 2
Hacksaw Machine(Cutting) 1 1 1
Lathe Milling Fixture 1 1 1
Assembly 3 1 3 1 3 1 4 1 4 1
Testing machine 2 2 2 2 2
Paint Shop 2 2 2 2 2
Total 12 2 14 3 19 4 22 4 24 5
Grand Total 14 17 23 26 29

Page | 37

Financial Analysis & BEP

Table 3 : Production and Sales

Year One Year Year Year Year

Two Three Four Five

1st Half 2nd half

Product Type (6 (6 Total
Months) Months)

Butterfly Valve (
Body-
CI, Disc- CF8)- 2"
No.of valves 0 1400 1400 1550 1700 1800 2000
Efficiency
Price per valve 740 740 740 750 750 800
Sales 1036000 1147000 1275000 1350000 1600000
Opening Debtor 0 172667 95583 106250 112500
Closing Debtor 172667 95583 106250 112500 133333
Average Debtor 86333 134125 100917 109375 122917
Butterfly Valve (
Body-
CI, Disc- CF8)- 2.5"
No.of valves 0 1100 1100 1200 1350 1500 1650
Efficiency
Price per valve 825 825 825 825 840 850
Sales 907500 990000 1113750 1260000 1402500
Opening Debtor 0 151250 82500 92812.5 105000
Closing Debtor 151250 82500 92813 105000 116875
Average Debtor 75625 116875 87656 98906 110938
Butterfly Valve (
Body-
CI, Disc- CF8)- 3"
No.of valves 0 1400 1400 1600 1750 1900 2000
Efficiency
Price per valve 935 935 935 950 1000
Sales 1309000 1496000 1636250 1805000 2000000
Opening Debtor 0 218167 124667 136354 150417
Closing Debtor 218167 124667 136354 150417 166667
Average Debtor 109083 171417 130510 143385 158542
Butterfly Valve (
Body-
CI, Disc- CF8)- 4"

No.of valves 0 1400 1400 1600 1750 1900 2100

Efficiency
Price per valve 1300 1300 1300 1350 1400
Sales 1820000 2080000 2275000 2565000 2940000
Opening Debtor 0 303333 173333 189583 213750

Page |
38

Closing Debtor 303333 173333 189583 213750 245000

Average Debtor 151667 238333 181458 201667 229375
Butterfly Valve ( Body-
CI, Disc- CF8)- 5"
No.of valves 0 500 500 560 630 700 800
Efficiency
Price per valve 1610 1610 1610 1650 1650
Sales 805000 901600 1014300 1155000 1320000
Opening Debtor 0 134167 75133 84525 96250
Closing Debtor 134167 75133 84525 96250 110000
Average Debtor 67083 104650 79829 90388 103125
Butterfly Valve ( Body-
CI, Disc- CF8)- 6"
No.of valves 0 800 800 900 1000 1100 1300
Efficiency
Price per valve 2160 2160 2160 2160 2200
Sales 1728000 1944000 2160000 2376000 2860000
Opening Debtor 0 288000 162000 180000 198000
Closing Debtor 288000 162000 180000 198000 238333
Average Debtor 144000 225000 171000 189000 218167
Butterfly Valve ( Body-
CI, Disc- CF8)- 8"
No.of valves 0 800 800 900 1000 1100 1300
Efficiency
Price per valve 2950 2950 2950 3000 3200
Sales 2360000 2655000 2950000 3300000 4160000
Opening Debtor 0 393333 221250 245833 275000
Closing Debtor 393333 221250 245833 275000 346667
Average Debtor 196667 307292 233542 260417 310833
Butterfly Valve ( Body-
CI, Disc- CF8)- 10"
No.of valves 0 800 800 900 1000 1100 1400
Efficiency
Price per valve 5575 5575 5575 5600 5700
Sales 4460000 5017500 5575000 6160000 7980000
Opening Debtor 0 743333 418125 464583 513333
Closing Debtor 743333 418125 464583 513333 665000
Average Debtor 371667 580729 441354 488958 589167
Butterfly Valve ( Body-
CI, Disc- CF8)- 12"
No.of valves 0 800 800 900 1100 1300 1500
Efficiency
Price per valve 8000 8000 8000 8000 8150
Sales 6400000 7200000 8800000 10400000 12225000

Page |
39

Opening Debtor 0 1066667 600000 733333 866666.6667

Closing Debtor 1066667 600000 733333 866667 1018750
Average Debtor 533333 833333 666667 800000 942708
Butterfly Valve (Body-
CI, Disc- SGI)- 2"
No.of valves 0 1400 1400 1550 1700 1900 2100
Efficiency
Price per valve 705 705 705 740 750
Sales 987000 1092750 1198500 1406000 1575000
Opening Debtor 0 164500 91063 99875 117167
Closing Debtor 164500 91063 99875 117167 131250
Average Debtor 82250 127781 95469 108521 124208
Butterfly Valve (Body-
CI, Disc- SGI)- 2.5"
No.of valves 0 1100 1100 1250 1400 1550 1700
Efficiency
Price per valve 765 765 800 825 840
Sales 841500 956250 1120000 1278750 1428000
Opening Debtor 0 140250 79688 93333 106563
Closing Debtor 140250 79688 93333 106563 119000
Average Debtor 70125 109969 86510 99948 112781
Butterfly Valve (Body-
CI, Disc- SGI)- 3"
No.of valves 0 1400 1400 1550 1700 1900 2100
Efficiency
Price per valve 840 840 840 860 920
Sales 1176000 1302000 1428000 1634000 1932000
Opening Debtor 0 196000 108500 119000 136167
Closing Debtor 196000 108500 119000 136167 161000
Average Debtor 98000 152250 113750 127583 148583
Butterfly Valve (Body-
CI, Disc- SGI)- 4"
No.of valves 0 1400 1400 1550 1700 1900 2100
Efficiency
Price per valve 1150 1150 1150 1200 1225
Sales 1610000 1782500 1955000 2280000 2572500
Opening Debtor 0 268333 148542 162917 190000
Closing Debtor 268333 148542 162917 190000 214375
Average Debtor 134167 208438 155729 176458 202188
Butterfly Valve (Body-
CI, Disc- SGI)- 5"
No.of valves 0 500 500 550 650 800 900
Efficiency
Price per valve 1390 1390 1390 1450 1500

Page |
40

Sales 695000 764500 903500 1160000 1350000

Opening Debtor 0 115833 63708 75292 96667
Closing Debtor 115833 63708 75292 96667 112500
Average Debtor 57917 89771 69500 85979 104583
Butterfly Valve (Body-
CI, Disc- SGI)- 6"
No.of valves 0 800 800 900 1000 1100 1250
Efficiency
Price per valve 1785 1785 1800 1850 1880
Sales 1428000 1606500 1800000 2035000 2350000
Opening Debtor 0 238000 133875 150000 169583
Closing Debtor 238000 133875 150000 169583 195833
Average Debtor 119000 185938 141938 159792 182708
Butterfly Valve (Body-
CI, Disc- SGI)- 8"
No.of valves 0 800 800 900 1000 1100 1250
Efficiency
Price per valve 2210 2210 2210 2250 2300
Sales 1768000 1989000 2210000 2475000 2875000
Opening Debtor 0 294667 165750 184167 206250
Closing Debtor 294667 165750 184167 206250 239583
Average Debtor 147333 230208 174958 195208 222917
Butterfly Valve (Body-
CI, Disc- SGI)- 10"
No.of valves 0 800 800 900 1000 1100 1250
Efficiency
Price per valve 4500 4500 4500 4700 4800
Sales 3600000 4050000 4500000 5170000 6000000
Opening Debtor 0 600000 337500 375000 430833.3333
Closing Debtor 600000 337500 375000 430833 500000
Average Debtor 300000 468750 356250 402917 465417
Butterfly Valve (Body-
CI, Disc- SGI)- 12"
No.of valves 0 800 800 900 1000 1100 1250
Efficiency
Price per valve 6750 6750 6750 6800 6900
Sales 5400000 6075000 6750000 7480000 8625000
Opening Debtor 0 900000 506250 562500 623333
Closing Debtor 900000 506250 562500 623333 718750
Average Debtor 450000 703125 534375 592917 671042

Lug type Butterfly

Valve (Body- CI, Disc-
SGI) -2"
No.of valves 0 0 0 0 0 0 1200

Page |
41

Efficiency
Price 800
Sales 960000
Opening Debtor 0
Closing Debtor 80000
Average Debtor 40000

Lug type Butterfly

Valve (Body- CI, Disc-
SGI) -3"
No.of valves 000000 800
Efficiency
Price per valve 900
Sales 720000
Opening Debtor 0
Closing Debtor 60000
Average Debtor 30000

Lug type Butterfly

Valve (Body- CI, Disc-
SGI) -4"
No.of valves 000000 1200
Efficiency
Price per valve 1300
Sales 1560000
Opening Debtor 0
Closing Debtor 130000
Average Debtor 65000

Lug type Butterfly

Valve (Body- CI, Disc-
SGI) -6"
No.of valves 000000 300
Efficiency
Price per valve 2100
Sales 630000
Opening Debtor 0
Closing Debtor 52500
Average Debtor 26250

Lug type Butterfly

Valve (Body- CI, Disc-
SGI) -8"
No.of valves 000000 800
Efficiency
Price per valve 3000
Sales 2400000
Opening Debtor 0

Page |
42

Closing Debtor 200000

Average Debtor 100000

Lug type Butterfly

Valve (Body- CI, Disc-
SGI) -10"
No.of valves 00 0 0 0 0 500
Efficiency
Price per valve 5250
Sales 2625000
Opening Debtor 0
Closing Debtor 218750
Average Debtor 109375

Lug type Butterfly

Valve (Body- CI, Disc-
SGI) -12"
No.of valves 00 0 0 0 0 400
Efficiency
Price per valve 7500
Sales 3000000
Opening Debtor 0
Closing Debtor 250000
Average Debtor 125000
 Total Sales 38331000 43049600 48664300 55289750 77090000
Total Avg Debtor 3194250 4987983 3821413 4331419 5515823

Table 5 : Raw Material Cost

Particular Year One Year Two Year Three Year Four Year Five

RM Cost 13415850 15067360 17032505 19351413 26981500

Inventory holding
period (Days) 10 10 10 7 6
Opening Inventory 0 367558 412804 466644 371123
Closing Inventory 367558 412804 466644 371123 443532
Average Inventory 183779 390181 439724 418883 407327
Purchase 13783408 15480164 17499149 19722536 27425032

Total Purchase 13783408 15480164 17499149 19722536 27425032

Total RM cost 13415850 15067360 17032505 19351413 26981500
Total RM inventory 183779 390181 439724 418883 407327

Page |
43

Table 6 : Profit and Loss

Particulars Year One Year Two Year Three Year Four Year Five

Income
Sales 38331000 43049600 48664300 55289750 77090000

Expenditure

1. Variable cost

Raw material consumed 13415850 15067360 17032505 19351413 26981500

Wages(From Wages table) 1266000 1536000 2208000 2496000 3132000
Packing Material 766620 860992 973286 1105795 1541800
Transportation 50000 80000 100000 120000 150000
Electricity 300000 450000 480000 520000 600000
Conveyance 766620 860992 973286 1105795 1541800
Maintenance and
Spares 80000 90000 110000 130000 150000
Stationary 55000 60000 75000 80000 100000
Telephone 48000 52000 54000 54000 56000

Total Variable Cost 16748090 19057344 22006077 24963002.5 34253100

CONTRIBUTION 21582910 23992256 26658223 30326747.5 42836900

2. Fixed Cost
Salary (From Wages
table) 2244000 2328000 2832000 3252000 3810000
Purchase of land for
factory and Build up
Furniture 17500000 0 0 0 0
Purchase of Machinery
& Pattern Design 4835500 0 0 0 0
Miscelliounous
Expenses 200000 300000 500000 600000 600000
Depreciation 483550 0
License fee 40000 48000 60000 70000 80000
Insurance 50000 60000 80000 80000 100000
Technical consulting fee 100000 300000 400000 400000 400000
Incorporation expenses 20000 30000 50000 60000 65000

Total FC 25473050 3066000 3922000 4462000 5055000

Profit (38,90,140) 209,26,256 22736223 25864748 37781900

Page | 44

Table 7: Wages

Wages Year One Year Two Year Three Year Four Year Five
A. Worker

Lathe Machine 15000 30000 56000 72000 108000

Rubber Moulding 22500 30000 32000 32000 36000
Drilling Machine 8000 8000 16000 16000 18000
hacksaw(Cutting) 8000 8000 9000
Assembly 30000 30000 32000 40000 45000
Lathe milling fixture 8000 8000 9000
Testing Machine 15000 15000 16000 16000 18000
Paint shop 15000 15000 16000 16000 18000

Monthly Total 105500 128000 184000 208000 261000

Annual Total 1266000 1536000 2208000 2496000 3132000

Salary
B.
Employee Quality Control 15000 15000 17000 18500 20000
Accountant 15000 16000 17000 35000 37000
HR 18000 19000 20000 22000 23000
Purchase Manager 16000 16000 17500 18000 20000
 Sales Person 18000 19000 21000 22500 25000
Supervisor 25000 25000 52000 56000 84000
Store Keeper 15000 15000 16500 17000 19000
Logistics & Invoicing 15000 15000 17000 18000 19500
Director 50000 54000 58000 64000 70000

Monthly Total 187000 194000 236000 271000 317500

Annual Total 2244000 2328000 2832000 3252000 3810000

Grand Monthly Total 2,92,500 3,22,000 4,20,000 4,79,000 5,78,500

Grand Annual Total 35,10,000 38,64,000 50,40,000 57,48,000 69,42,000

Page | 45

Table 8 : Working Capital

Year Year
Particulars Year One Two Year Three Four Year Five

Current Assets

Raw Material
Inventory 183779 390181 439724 418883 407327
Debtors 3194250 4987983 3821413 4331419 5325198
Finished goods
inventory 1916550 2152480 2433215 1105795 1541800

Total Current
Assets 5294579 7530644 6694352 5856097 7274325

Current Liabilities

Creditors 0 0 0 0 0

Net Working
 Capital 5294579 7530644 6694352 5856097 7274325

Table 10 :
Assets

Year
Sr. Cost Total Two Year Year Year
Year
No Machine Name Qty (INR) (INR) One Three Four Five

Heavy Duty Lathe

1 Machine 12" 2 250000 500000 500000
Medium Duty Lathe
2 Machine 9" 3 175000 525000 525000
Light Duty Lathe
3 Machine 4 125000 500000 500000
Milling Fixture (For
4 Slotting) 1 100000 100000 100000
Rubber Moulding
5 Machine 3 150000 450000 450000
Hydraulic Hacksaw
6 Machine 1 50000 50000 50000
(Cutting Machine)

7 Air Compressor 1 50000 50000 50000

Radial Drill Machine
8 All Geared 1 350000 350000 350000
Manual Feed
9 Drilling cum 1 100000 100000
Tapping Machine 100000

10 Bench Grinder 1 3000 3000 3000

Bosch Hand
11 Grinding machine 4 2000 8000 8000
Automatic Valves
12 Testing 1 750000 750000 750000
Machine and fixtures
set

Mitutoyo Vernier
13 Calliper 6 5000 30000 30000
Air Gun (for
14 Cleaning) 10 200 2000 2000
Drill Bits and Tapper
15 Bits Set 2 3000 6000 6000

Page |
46

16 Table Lathe 6 7500 45000 45000

17 Spray Paint Machine 1 3500 3500 3500
18 Bosch Screw Driver, Allen Key 2 1500 3000 3000
Set
19 Weighing Machine 1 10000 10000 10000
Butterfly Valves Body
20 Aluminum Pattern (2"-12") 2 300000 600000 600000
each of Wafer Type Pattern and
Lug Type Pattern
21 Butterfly Valves Disc Aluminum 1 100000 100000 100000
Pattern (2"-12") each

22 Butterfly Valves Disc Aluminum 1 100000 100000 100000

Dies (2"-12") each

23 Butterfly Valves Rubber 1 100000 100000 100000

Moulding Dies (2"-12") each
24 Jigs and Fixtures Set (2"-12") 1 50000 50000 50000
Each
25 Furniture & Fixtures 4 100000 400000 400000

Total Investments 4835500 4835500 0 0 0 0

Table 11 : Break Even Analysis

No. of valves sold 18,000 20,160 22,430 24,850 33,150

Contribution Margin per unit 1,199 1,190 1,189 1,220 1,292

Break Even in terms of (No. of

valves) 21,244 2,576 3,300 3,656 3,912

Break Even in terms of (sales

turnover) 45239844 5501362 7159569 8134828 9097062
 Page |
47

CHAPTER 5
LOCATION & LAYOUT
 Page | 48

5. Location & Layout

Selection of Location

Deciding the location of the plant is one of the key factors which must be taken into
consideration while preparing a business plan, especially for manufacturing
industries. It should not only be easily accessible for customers and workers but must
also enable smooth transportation without much hassle.

A manufacturing unit is the place where all inputs such as raw materials, equipment,
skilled labourers etc. come together and manufacture products for customer.
The reason we had selected Ahmedabad district as a location for our manufacturing
plant, is because it is the hub of Valve manufacturing. Also, many MSME valve
industries are located in Ahmedabad. Listed below are the key reasons why we
chose Ahmedabad as a location: -

1) Easy access to castings of raw materials

2) Skilled labour can be acquired at economical rate

3) Outsource the raw materials required for the product

4) Reduction in transportation cost

5) Easy availability of vendors

Page | 49
P
L
A
N
T
L
A
Y
O
U
T

Page | 50