PROJECT PROFILE ON MONOLITHIC REFRACTORIES

PRODUCT : MONOLITHIC REFRACTORIES

NIC PRODUCT CODE : i) NIC-1998: …

ii) ASICC-2000: …

QUALITY STANDARDS : As per customer‟s specification

PRODUCTION CAPACITY : Quantity: 3000 MT/Yr.,

(PER ANNUM) Value: Rs. 2,50,50,000.

MONTH & YEAR

OF PREPARATION : Sep. ~ Oct. „2010

PREPARED BY : Br. MSME-DI, Durgapur,

WBSIDC Industrial Estate
J. P. Avenue, Durgapur (W.B.) – 713212.
Phone No. 0343-2557129

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1. INTRODUCTION : Refractory Industry is an important field which caters the
need of various consuming industries including core industries like Iron & Steel, Glass,
Cement, Ceramic, Fertilizer, Petrochemicals, Power generation, Non-ferrous etc. In case of
industries with high temperature activities, Refractories are essential. In Indian Standard, IS:
4041-1987, the word “Monolithic” is defined as „Glossary of terms relating to Refractory
Materials‟ as „Jointless‟, for example as applied to linings that are rammed or cast in situ‟. In
the industry, the term Monolithic Refractories or Mololithics or simply Monoliths are
applied to a group of refractory-cements, castables, ramming and gunning mixes that may be
cast, poured, rammed, gunned or vibrated in place to form an integral furnace linings as
opposed to being built of jointed brick work.

2. MARKET: With the development of the consuming industries, the demand for
refractories in general and monolithics in particular is mainly linked. About 75% of the
refractories produced in the country are being consumed by the iron and steel industries and
the balance goes largely to the cement, glass, thermal power plant and such other industries.
There has been a rapid change in the iron and steel industry during the past few decades,.
The new techniques such as basic oxygen furnaces, continuous casting, etc. have called for
special refractories. The technological changes and increasing demands for greater furnace
output have made it imperative to turn to newer refractories and refractory installation
techniques. Due to its inherent advantages, consumption of monolithic refractories has been
continuously increasing while consumption of bricks and shapes has been declined. Thus,
Monolithic Refractories is having very good scope in the market.

3. BASIS AND PRESUMPTIONS: Following points have been taken into consideration:
i). It has been taken into consideration that the unit will be running on a single shift basis for
300 days in a year.
ii). 1 to 3 months trial production is required to achieve full plant capacity.
iii). Interest rate of 12% is considered for Fixed & Working Capital.
iv). Margin money will vary from 10-25% depending upon the location and scheme adopted.
v). Operative period of the project is around 10 yrs. considering technology obsolescence
rate and loan repayment period.
vi).The cost of land, construction charges, raw materials, machineries & equipments,
consumables, salary & wages and other expenses are based on present prevailing conditions.
viii). Provisions for routine tests have been made in the scheme. It is presumed that facilities
for other tests are available from out side agencies.
viii). Economy of the scheme is worked out assuming the product mix as : Silica
Monolithics : 10%, High Alumina Monolithics : 20%, Basic Monolithics : 30% & Alumino-
Silicate Monolithic :40%.

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4. IMPLEMENTATION SCHEDULE:

S. N. Implementation Schedule Activity Period

(month ~ month)
1 Survey for data collection (regarding demand, raw material, 0 ~ 2nd
power and fuel technology & pollution control etc.)
2 Project Document and EM Preparation 2nd ~ 3rd
3 Margin Money Arrangement 2nd ~ 3rd
4 Site Selection and Land Development 4th ~ 6th
5 Financial Assistance Arrangement 4th ~ 6th
6 Make shift Office 7th
7 Pollution Clearance 3rd ~ 5th
8 Electricity, Fuel and Water Arrangement 4th ~ 6th
9 Machine Selection, Order placement, Construction, Installation 5th ~ 10th
etc.
10 Raw Material Selection, Order placement, Raw Materials 9th ~ 10th
Receipt
11 Laboratory Installation 9th ~ 10th
12 Trial production 12th

5. TECHNICAL ASPECTS:

Manufacturing Process: Raw materials used for manufacture of Monolithics

are crushed and ground with the help of Jaw Crusher and Pulveriser. After pulverizing
materials are screened and stored in different sizes. Different raw materials of various sizes
are taken as per required proportion and mixed in mixing machine. After proper mixing,
materials are packed in suitable bags or container and sent for dispatch.

Quality Control and Standards: As basis for Quality Control, IS: 1335-1979, IS:
10047-1981 and IS: 10570-1983 may be used for carrying out the various tests of
Monolithics.

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6. PROCESS FLOW CHART:

Raw material Crushing Grinding/ Pulverizing Screening

Despatch Packing Testing Mixing

7. PRODUCTION CAPACITY (P.A.):

Quantity: 3000 MT, Value: Rs. 2,50,50,000.

8. MOTIVE POWER: Approx. 85 HP.

9. POLLUTION CONTROL: As it is presumed that calcined and sintered raw materials

will be procured from outside and there is no question of firing of the finished product in
case of monolithics, possibility of air pollution due to emission of oxides of sulpher and
carbon are completely eliminated. However, fine dust and grit are produced during the
process of crushing, grinding, sieving and mixing of different batch ingredients. Due to
attrition of particles, dust is thrown into the surrounding air. Dust also comes into the air
during transferring the ground material from one place to another. Air pollution by dust
constitutes a nuisance and is a health hazard. Thus, to prevent health hazards, Cyclonic Dust
Collector, effective dust control system are to be installed in the plant.

10. ENERGY CONSERVATION: Attention is to be given for energy conservation in

power consumption.

11. FINANCIAL ASPECTS:

A. Fixed Capital
Value
Area Rate
(Rs.)
i. Land & Building (sq. ft.) (Rs./ sq. ft)
Land 30000 50 1500000
Workshed 2000 200 400000
Raw material shed 1000 150 150000
Godown 1000 150 150000
Office 500 150 75000
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 Boundary wall LS 150000
Total 2425000

ii . Machinery & Equipment

S. Value
Description Qty. Rate (Rs.)
N. (Rs.)
Jaw Crusher (225mm x 100mm),
1 1 100000 100000
complete with 7.5 H.P. Motor.
Single row Roller Crusher (300mm
2 dia.X 375mm face), complete with 7.5 1 80000 80000
HP Motor.
Pan Mill (1200mm pan dia.), with 7.5
3 1 100000 100000
HP Motor
Hammer Mill (375mm x 200mm),
4 1 80000 80000
complete with 7.5 HP Motor.
Rotary Screen Set (cylinder = 425mm
5 dia.X1800mm length), with 2 HP 1 40000 40000
motor.
Bucket Elevator, complete with 2 HP
6 2 50000 100000
Motor.
Double deck Vibrating screen
7 (enclosed in dust proof casing), with 2 1 50000 50000
HP Motor.
Magnetic separator (rotating drum
8 1 30000 30000
type)
Counter current mixer (100 litres cap.),
9 complete with 10 HP squirrel cage 1 150000 150000
induction motor.
Double shafted trough mixer (1200mm
10 x 600mm x 600mm barrel size) with 5 1 110000 110000
HP motor.
Weighing Balance, Stitching Machine,
11 LS 100000 100000
Materials Handling equipments etc.
Cyclone separator (10,000 cu.mtr/hr.
cap.), complete with suction fan,
12 1 250000 250000
suction hoods, ducting and stack & 15
HP Motor.
13 Testing Equipments And Apparatus LS 500000 500000
15 Tools & jigs etc LS 50000 50000
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16 Office Furniture & equipment. LS 80000 80000
Electrification & installation LS 100000 100000
Total 1920000

iii. Pre-operative expenses 75000

TOTAL FIXED CAPITAL (i+ii+iii) 4420000

B. Working Capital (Per month)

i) Salary & Wages (Per Month):

Total
Sl. Personnel Nos. Salary (Rs.)
(Rs.)
1 Manager 1 10000 10000
2 Supervisor (Tech & Non-Tech) 3 6000 18000
3 Skilled Workers 3 4000 12000
4 Semi-Skilled Workers 5 3000 15000
5 Unskilled Workers. 7 2500 17500
Peon 2 2500 5000
6 Watchaman 2 2500 5000
Perquisites @15% of salaries 12375
94875
ii) Raw Materials (Per Month):
Qty.(M Value
Sl. Item Rate
T) (Rs.)
1 Raw Fire clay 20. MT @ Rs.400/- per 8000
MT
32. MT @ Rs.1,300/- per 41600
Calcined Fire clay/ Grog
2 MT
53. MT @ Rs.2,500/- per 132500
Calcined Bauxite
3 MT
32. MT @ Rs.6,000/- per 192000
Calcined Kyanite
4 MT
28. MT @ Rs.700/- per 19600
Quartzite
5 MT
20. MT @ Rs.4,500/- per 90000
Chromite
6 MT
50. MT @ Rs.8,500/- per 425000
7 Dead Burnt Mangesite MT
5. MT @ Rs.3,500/- per 17500
8 Calcined Dolomite MT
Fused Alumina grains 22. MT @ Rs.24,000/- per 528000
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9 MT
5. MT @ Rs.28,000/- per 140000
10 High Alumina Cement MT
11 Chemical reagents. LS 10000
12 Packing materials LS 20000
Total 1624200

Value
iii) Utilities (per month)
(Rs.)
Electrical Power (70 KWHrxRs.4.00x8Hrs.x25
1 56000 56000
Days)
2 Water LS 1000 1000
57000

Value
iv) Other contingent expenses (Per Month) :
(Rs.)
Postage, Stationery, Telephone etc. 2000
Transport Charges. 3000
Repair & Maintenance 3000
Advertisement/ Publicity 2000
Other Misc. Expenses 5000
15000
v) Total Working Capital (per month)
Value
(Rs.)
1 Salary & Wages 94875
2 Raw Materials 1624200
3 Utilities 57000
4 Other contingent expenses 15000
1791075

vi) Working Capital for 3 months 5373225

vii
Total Capital Investment
)
Value
(Rs.)
i) Fixed Capital 4420000
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ii) Working Capital 5373225
9793225

12. FINANCIAL ANALYSIS:

Value
1 Cost of Production (per year)
(Rs.)
Total recurring cost (per year) 21492900
Depreciation on Building @ 5% 5% 46250
Depreciation on machinery &
10% 169000
equipment @ 10%
Depreciation on office equipment
20% 16000
@20%
Depreciation on Tools, jigs etc. @25% 25% 12500
Total interest on capital investment @
12% 1175187
12%
22911837
or say, 22911800
2 Turnover per year
Sl
Qty.(M Value
No Item Rate(Rs.)
T) (Rs.)
:
@ Rs.3,500/- per
I 300 tons of Silica monolithics 300 1050000
MT
@ Rs.17,000/- per
II 600 tons of High Alumina monolithics 600 10200000
MT
@ Rs.10,000/- per
III 900 tons of Basic monolithics 900 9000000
MT
1200 tons of Alumino-Silicate @ Rs.4,000/- per
IV 1200 4800000
monolithics MT
Total 25050000

3 Net Profit per year (Before taxes)

Total Sales - Cost of Production 2138200

4 Net Profit Ratio

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 Net Profit per Year x 100 8.54%

Turnover per Year

5 Rate of Return

Net Profit per Year x 100

21.83%

Total Capital Investment

6 Break-even Point

Fixed Cost
Total Depreciation 243750
Total interest on capital investment 1175187
40% on salaries 455400
40% of other contingent expenses 72000
1946000

= 47.65% Say,
BEP = 48.00%

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13. NAME & ADDRESSES OF SUPPLIERS OF MACHINERY AND
EQUIPMENTS

1 M/s. Amic Industries (P) Ltd., 86D, Dr. Suresh Sarkar Road, Kolkata.
2 M/s. Hari Machines Ltd., O.B. No. 5, Rajgangpur, Sundargarh, Orissa.
3 M/s. Keshab Machinery (P) Ltd., 25, Swallow Lane, Kolkata.
4 M/s. Durgapur Engineering Co. Ltd., MARSHALL HOUSE, 33/1, N. S. Road,
Kolkata.
5 M/s. Frigmaires Engineers, Palamal Tower, 9th Floor No. 903, Near New Council
Hall, Nariman Point, Mumbai.
6 M/s. Veenedyt, P.B. No. 16458, Mahim, Bombay
7 M/s. Corporated Ceramists, 50/2, Lenin Sarani, 2nd Floor, Kolkata.
8 M/s. D.K. Engineering Works, 8/C, Panchanantala New Road, Belgharia, Kolkata.
9 M/s. Jaycee Traders, 12, Gitanjli, 1st Floor, Plot No. 378, Mumbai.
10 M/s Perfect Machine Tools Corpn.,1,Smith Road, Chennai-1
11 M/s Hindustan Engineering Company, 123/7, G.L.Tagore Road, Baranagar,
Bonhoogly, Kol-35

14. NAME & ADDRESSES OF SUPPLIERS OF RAW MATERIALS &

CHEMICALS:

1 M/s Tata Refractories Ltd., P.O. Belpahar, Sambalpur, ORISSA – 768218.

2 M/s. Carborandum Universal Ltd., Refractories Division, TIAM house Annexe, III
Floor, 28, Rajaji Road, CHENNAI-600001
3 M/s. Orient Abrasives Ltd., GIDC Indl. Area, PORBANDAR – 360577.
4 M/s. Dalmia Magnesite Corpn., Salem-636012 (T.N.)
5 M/s. Valley Magnesite Ltd., Maithan Road, Chirkunda, DHANBAD – 828002
6 M/s. The Associated Cement Companies Ltd.,
Cement House, 121, Maharshi Karve Road, MUMBAI – 400020
7 M/s. Indian Aluminium Co. Ltd.,
KOLKATA – 700071
8 M/s. Khaitan refractories (P) Ltd., Nainital, (U.P.)
9 M/s. Bagmar Bausite Industries, P.O. Keskal, Bastar (M.P.)
10 M/s. Industrial Minerals & Mill, Stores Traders (P) Ltd., 10/IC, Mercentile
Buildings, Lall Bazar, Kolkata.
11 M/s. Refractories Minerals, 170, Aurobindo Sarani, P-3/1, Grey Street Extn.,
Kolkata.

15. RESOURCE CENTER OF TECHNOLOGY:

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 i. Govt. College of Engg. & Ceramic Technology, Kolkata-10
ii. CGCRI, Jadavpur, Kolkata -32
iii. CMERI, Durgapur, W.B. – 16
iv. Br. MSME-DI, Durgapur, W.B. – 12
v. NIT, Durgapur, W.B. – 16
vi. NIT, Rourkela, Odissa.

16. LIST OF THE UNITS SET UP BY USING THIS PROJECT PROFILE:

In this region, there are some units to produce such products. However, this project profile is
prepared considering the present trends.

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