8

Crockery (Bone China)

PRODUCT CODE : 94326 and 94389

QUALITY AND STANDARDS : As per Customers Specification

MONTH AND YEAR : January, 2003

OF PREPARATION

PREPARED BY : Small Industries Service Institute,

10 Industrial Estate, Pologround,
Indore - 452 015 (M.P.)
Phone Nos.: 0731 - 421048/421540/421649
Fax No. : 0731 - 420723
E-mail: sisiind@sancharnet.in
Website: www.sisiindore.com

INTRODUCTION B ASIS AND PRESUMPTIONS

Mankind has a natural liking and The unit will run on single shift
inclination towards clay made basis in 300 working days in a year.
utensils/crockery. Though a number There will be a 8 hours shift in a day.
of substitute items appeared in the Furnance will work on three shifts
market ultimately the clay crockery basis.
has sustained. The fancy items of
bone china like tableware, crockery, Full production capacity will be
decorative items, lamp shades etc. achieved in 3 years.
is finding a good domestic as well as
Wa g e s a r e t a k e n a s p e r t h e
export market.
minimum wages of the Government.
MARKET POTENTIAL Rate of interest on borrowings-
14%.
The decorative items made of bone
china are elegant for while there is a Life of plant and machinery-10
customer preference. The demand of years.
bone china crockery and decorative
Life of furnace-5 years.
item in urban areas is gradually
increasing. There is a good scope of Cost of plant and machinery as per
export to Gulf countries. latest quotations.
50 CROCKERY (BONE CHINA)

IMPLEMENTATION SCHEDULE Motive Power 48 H. P.

Sl. Activity Period Pollution Control

No. (in months)
Bone China unit has to take no
1. Possession of land 2
objection certificate from the State
2. Construction of building 5 Pollution Control Board as per rule.
3. Purchase of machinery 8
4. Installation of machinery 12 FINANCIAL ASPECTS
5. Trial production 14 A. Fixed Capital
TECHNICAL ASPECTS (i) Land and Building (Rs.)
Land 2000 sq. mtr 11,00,000
Process of Manufacture
@ Rs. 550 sq. mtr.
China clay powder, calcined quartz Building
powder, potash felspar, bone ash and Work shed 500 sq. mtr. 7,75,000
other raw materials are weighed @ Rs. 1,550 sq. mtr.
proportionately and fed in to ball mill Office Store 100 sq. mtr. 1,55,000
for fine grinding. This mixture is ground @ Rs. 1,550 sq. mtr.
to 300 mesh and sieved after passing Total 20,30,000
through magnetic separator. The slurry
is placed in agitator. This slurry is again (ii) Machinery and Equipments

pumped in to filter press, cake received Particulars Quantity Value

from filter press is mixed with water and (Nos.) (Rs.)
electrolyte to make casting slip. Now Ball mill 5' x 5 1/2' with 3 64,000
desired items are cast in Plaster of Paris motor and other
accessories
moulds. Articles are taken out from
moulds and dried. These articles are Ball mill 3' x 3' with 7 HP 1 32,000
motor and other
finished. After finishing and drying
accessories
articles are biscuit fired. Articles are
Blunger 10' with 5 HP motor 1 54,000
glazed by dipping or spraying and again
after drying these articles are gloss fired. Agitator with 3 HP motor 1 26,500
At last ready articles are decorated by Vibrating screen with 2 54,000
transfer papers, ceramic colour or gold. magnetic separator
These decorated articles are fired at Filter press 44'’ dia, 30 plates 1 63,000
650ºC in electrical furnace. Thus ready
De-airing pug mills 1 64,000
articles are sorted and packed for with 5 HP motor
despatch.
Saggar press hand operated 1 17,000
Quality Control and Standards Pot mills 2 HP motor 1 5,500

As per customer’s specification. Shuttle kiln 6 Cubic meter 2 17,00,000

Muffle electric furnace 1 3,20,000
Production Capacity (per annum)
Installation, electrification L.S. 2,40,000
Bone China Crockery and Art ware expenditure
Quantity : 130 MT Plaster of Paris moulds L.S. 40,000
Value : Rs. 94, 50, 000
 C ROCKERY (BONE CHINA) 51

Particulars Quantity Value Particulars Quantity Rate Cost

(Nos.) (Rs.) (Rs.) (Rs.)
Rack, panels etc. L.S. 16,000 Frit 1 MT 17,000 17,000
Testing equipments L.S. 6,000 Plaster of Paris 2 MT 2,100 4,200
Office furniture L.S. 40,000 Fire clay 3.0 MT 1,575 4,725
Total 27,42,000 Sillimanite 0.18 MT 3,700 666
(iii) Pre-operative Expenses Rs. 22,000
Decoration paper L.S. 10,000 10,000
Total Fixed Capital (Rs.) Packing material L.S. 10,000 10,000
Land 11,00,000
Other Contingent L.S. 6,500 6,500
Building 9,30,000 expenses
Plant and Machinery 27,42,000 Total 1,66,351
Preliminary Expenses 22,000
or Say 1,66,400
Total 47,94,000
(iii) Utilities (Rs.)
B. Working Capital (per month) Power 48 HP 15,000
(i) Salary and Wages Diesel L.D.O. 12 KL 1,92,000
@ Rs. 16,000 per K.L.
Particulars Nos. Salary Total
Total 2,07,000
(Rs.) (Rs.)
Manager 1 6,500 6,500 (iv) Other Contingent Expenses (Rs.)
Production Manager 1 5,500 5,500 Postage and Stationery 1,800
Supervisors 3 3,500 10,500 Advertisement and publicity 1,200
Accountant/Clerk 1 3,000 3,000 Insurance 2,800
Firemen 4 3,000 12,000 Telephone Bills 2,000
Moulders 2 2,800 5,600 Consumables 1,200
Skilled Workers 25 2,200 55,000 Repair and Maintenance 1,200
Un-skilled Workers 15 1,800 27,000 Miscellaneous Expenses 1,500
Decorators 2 2,000 4,000 Total 11,700
Peons 2 1,800 3,600
(v) Total Working Capital (per month) (Rs.)
Electrician 1 2,000 2,000
Raw Materials 1,66,400
Total 1,34,700
Salaries and Wages 1,54,900
Add Perquisites @ 15% 20,205
Utilities 2,07,000
Total 1,54,905
Other Contingent Expenses 11,700
or Say 1,54,900
Total 5,40,000
(ii) Raw Materials Working Capital for 3 months
(5,40,000 x 3) 16,20,000
Particulars Quantity Rate Cost
(Rs.) (Rs.) C. Total Capital Investment
Bone ash 9 MT 11,200 1,00,800 Fixed Capital Rs. 47,94,000
China clay 2.4 MT 2,650 6,360 Working Capital for 3 months Rs. 16,20,000
Felspar 6.1 MT 1,000 6,100 Total Rs. 64,14,000
52 CROCKERY (BONE CHINA)

FINANCIAL ANALYSIS (6) Break-even Point

Fixed Cost (Rs.)

(1) Cost of Production (per annum) (Rs.)
1. Depreciation on Building 46,500
Total Recurring Cost 64,80,000
2. Depreciation on Plant and
Depreciation on Building @ 5% 46,500 Machinery and Furnace 4,42,600
Depreciation on furnace @ 20% 4,04,000 3. Depreciation on Furniture
Depreciation on Plant and and Fixture 19,200
Machinery @ 10% 38,600 4. Interest on Borrowings @ 14% 8,97,960
Depreciation on Furniture 5. 40% of Salary and Wages 7,43,520
and Fixtures @ 20% 19,200
6. 40% of Other Contingent Expenses 42,720
Interest on Total Capital
Investment @ 14% 8,97,960 7. Insurance 33,600
Total 78,86,260 Total 22,26,100

(2) Turnover (per annum)

B.E.P.
Item Quantity Rate Value
= Fixed Cost x 100
(Tonnes) (Rs.) Fixed Cost + Profit
Bone China Waxes
= 22,26,100 x 100
and Art ware 22,26,100 + 15,63,740
Grade A 50 M.T. 85,000 42,50,000
= 22,26,100 x 100
Grade B 80 M.T. 65,000 52,00,000 37,89,840

Total 94,50,000 = 58.74%

(3) Net Profit (per annum) Addresses of Plant and Machinery/

Furnace Suppliers
= Turnover – Cost of Production
= Rs. 94,50,000 – 78,86,260 1. M/s. Shiv Industries
= Rs. 15,63,740 206, Veena Dalvi Industrial Estate,
Oshiwara, Jogeshwari (W),
(4) Net Profit Ratio Mumbai - 400 102
= Net Profit per annum x 100 2. M/s. Erich Magnetics
Turn Over per annum 176/6B/10, Old Tijab Mill,
= 15,63,740 Bholanath Nagar, Shahadra,
94,50,000 x 100 Delhi - 110 032
= 16.55%
3. M/s. Amic Industries Private
(5) Rate of Return
Limited
10, B.T. Road, Kolkata - 700 056
= Net Profit per annum x 100
Total Capital Investment 4. M/s. Eleind Engineering Private
Limited,
= 15,63,740 x 100
64,14,000 D-20/2, Okhla Industrial Area,
= 24.38% Phase - II, New Delhi - 110 020
 C ROCKERY (BONE CHINA) 53

Raw Material Suppliers 3. M/s. Tower Minerals

1. M/s. Alam Ji Plaster Udyog Post Office- Malpur,
Ramji Ki Gol, Zenipur,
Tehsil Gurmalani, (Rajasthan)
Barmer (Rajasthan) 4. M/s. Mahavir Minerals Private
2. M/s. Ceekay Plasters and Limited
Chemicals, Jautani Bazar,
64, Industrial Area, Bikaner Ajmer,
(Rajasthan) (Rajasthan)