PROJECT REPORT

ON

WELDING ELECTRODES

LOCATION:
SY NO ; 10 5/ 11,
J AYA K R I S H N A P U R A M V I L L A G E ,
T O L U S U R U P A L L I PA N C H A YAT,
TEKKALI MANDAL
S RI K AK U L A M D I S T.

Page 1 of 24

TAB L E O F C O N T E N T S
S.NO

PARTI C U L A R S

PAG E N O

1.

P R O J E C T AT A G L A N C E

3 - 4

2.

INTRODUCTION

5 - 5

3.

SCOPE OF THE PROJECT

6 - 6

4.

CONSTITUTION AND SECTOR

7 7

5.

BACKGROUND OF THE PROMOTERS

8 - 9

6.

LOCATION AND ITS ADVANTAGES

10 - 10

7.

RAW MATERIALS

11- 11

8.

PROCESS FLOW CHART

12 - 12

9.

PROJECT COST & MEANS OF FINACNE

13 - 13

10.

DETAILED NOTES ON ESTIMATED PROJECT COST

14 - 15

11.

DETAILED NOTES ON MEANS OF FINANCE

16 - 16

12.

SW OT ANA LYS IS

17 - 17

13.

I M P L E M E N TATI O N S C H E D U L E

18 18

14.

PROJECT BENEFITS

19 20

15.

UTILITIES AND SERVICES

21 - 21

16.

ASSUMPTIONS

22 - 23

Page 2 of 24

01. PROJECT AT A GLANCE

Name of the Unit
Registered
Office
Particulars
of
Proposed
Project
Project
site
location
and
area
Location
Advantages

Unit Profile

Project Cost /
Means
of
Finance

OMEGA WELDING ELECTRODES

SY NO; 105/11, JAYAKRISHNA PURAM VILLAGE, TEKKALI,
SRIKAKULAM
Electrodes installed capacity of
1200 MTS per
annum
SY NO; 105/11, JAYAKRISHNA PURAM VILLAGE, TEKKALI,
SRIKAKULAM
Jayakrishnapuram is a village, in Mandal located in the Tekkali
Mandal, Srikakulam district of Andhra-Pradesh state, India. The
proposed location is Km from Anandapuram and about Km from
Visakhapatnam. The location is near to the Visakhapatnam
market. The availability of labour at Village is economical. The
National highway is just 5.0 Km from the site location. Ground
water is also available at plenty.
The Unit M/s Omega Welding Electrodes is for manufacture of
Welding E l e c t r o d e s . This profile envisages the establishment
of a unit for the Manufacturing of Welding E l e c t r o d e s with an
annual capacity of 1 2 0 0 M T S p e r a n n u m
Name of the Promoters: Mr. Sreedhar Sanjeevi

PAR T I C U L A R S
LAND
BUILDINGS
PLANT
&
MACHINERY
ERECTION
&
E L E C T R I F I C ATI O N
WORKING
C A P I TAL M A R G I N
T O TAL

The Total Project cost for the proposed unit is estimated

and works out to Rs. 110.00 Lakh
The project is proposed to be funded through term loan
from bank to an extent of Rs. 68.50 Lakh and Equity of Rs.
41.50 Lakh
The Debt Equity Ratio of the project works out to 1.65:1
AMOUNT
PAR T I C U L A R S
AMOUNT
OWN
C A P I TAL
41.50
13.00
TERM LOAN
68.50
70.00
10.00
17.00
110 . 0 0

T O TAL

Means of Finance:
Capital
: 41.50
Limits Required
Term Loan
: 68.50
Working Capital : 50.00
Total
: 118.50
Page 3 of 24

110 . 0 0

Promoters Contribution : 37.72%

Debt / Equity
: 1.65:1
Manufacturing
The Unit proposed to Manufacture of E l e c t r o d e s by a simple
Process
& and proven technology.
Technology
Raw Materials & T h e R a w M a t e r i a l r e q u i r e d f o r M a n u f a c t u r i n g o f
Consumables
Electrodes
are
available
in
and
around
Visakhapatnam itself .This being the first Unit with
an annual capacity of 1200 MTS pa.
Hence the promoter does not anticipate any
problem in procuring the required raw materials for
this Unit.
Utilities
Power: The total connected load to the plant is 60 HP.
Water: Water is required for domestic 0.5 KLD purpose. There is
one bore well present and no scarcity in water.
Pollution Control: The technology adopted by the Unit is eco
friendly.
Market
The Unit is in the process of having tie-ups with the clients.
Arrangements
Approvals
M/s Omega Welding Electrodes has to be obtained approvals
from SSI, APIIC, Consent order for establishment from AP
Pollution Board, Electricity Feasibility certificate from The
APEPDCL, Consent from Factories department, Consent for
establishment from VUDA.
Interest Rate
Interest for Tem Loan and working capital is considered at 12.50
% and 12.75 % respectively
Repayment
The term loan is scheduled to ray in 84 equated monthly
Period
installments after a moratorium period of one year from the date
of disbursement. The repayment starts from April 2017 and ends
by September 2023. The total door to door tenor is 7 years.
COD
The proposed project is estimated to complete by December
2016 and commencement its full scale of commercial operations
from April 2017. The estimated time to complete the project is
about 12 months.
Turn-over for 3 2017-18: Rs. 280.80
years in Lacs
2018-19: Rs. 324.00
2019-20: Rs. 367.20
.

02. INTRODUCTION
Page 4 of 24

Electrode
An electrode is an electrical conductor used to make contact with a nonmetallic part
of a circuit (e.g. a semiconductor, an electrolyte, a vacuum or air). The word was coined
by William
Whewell at
the
request
of
the
scientist Michael
Faraday from
the Greek words elektron, meaning amber (from which the word electricity is derived),
and hodos, a way.

Anode and cathode in electrochemical cells

An electrode in an electrochemical cell is referred to as either an anode or a cathode (words
that were coined by William Whewell at Faraday's request). The anode is now defined as the
electrode at which electrons leave the cell and oxidation occurs, and the cathode as the
electrode at which electrons enter the cell and reduction occurs. Each electrode may become
either the anode or the cathode depending on the direction of current through the cell. A
bipolar electrode is an electrode that functions as the anode of one cell and the cathode of
another cell.

Primary cell
A primary cell is a special type of electrochemical cell in which the reaction cannot be
reversed, and the identities of the anode and cathode are therefore fixed. The anode is
always the negative electrode. The cell can be discharged but not recharged.
Secondary cell
A secondary cell, for example a rechargeable battery, is a cell in which the chemical
reactions are reversible. When the cell is being charged, the anode becomes the positive (+)
and the cathode the negative () electrode. This is also the case in an electrolytic cell. When

Page 5 of 24

the cell is being discharged, it behaves like a primary cell, with the anode as the negative
and the cathode as the positive electrode.
Other anodes and cathodes
In a vacuum tube or a semiconductor having polarity (diodes, electrolytic capacitors) the
anode is the positive (+) electrode and the cathode the negative (). The electrons enter the
device through the cathode and exit the device through the anode. Many devices have other
electrodes to control operation, e.g., base, gate, control grid.
In a three-electrode cell, a counter electrode, also called an auxiliary electrode, is used only
to make a connection to the electrolyte so that a current can be applied to the working
electrode. The counter electrode is usually made of an inert material, such as a noble
metal or graphite, to keep it from dissolving.
Welding electrodes
In arc welding an electrode is used to conduct current through a workpiece to fuse two
pieces together. Depending upon the process, the electrode is either consumable, in the
case of gas metal arc welding or shielded metal arc welding, or non-consumable, such as
in gas tungsten arc welding. For a direct current system the weld rod or stick may be a
cathode for a filling type weld or an anode for other welding processes. For an alternating
current arc welder the welding electrode would not be considered an anode or cathode.
Alternating current electrodes
For electrical systems which use alternating current the electrodes are the connections from
the circuitry to the object to be acted upon by the electric current but are not designated
anode or cathode because the direction of flow of the electrons changes periodically, usually
many times per second.
Uses
Electrodes are used to provide current through nonmetal objects to alter them in numerous
ways and to measure conductivity for numerous purposes. Examples include:

Electrodes for fuel cells

Electrodes
for
medical
purposes,
such
as EEG (for
recording
activity), ECG (recording heart
beats), ECT (electrical
stimulation), defibrillator (recording and delivering cardiac stimulation)

Electrodes for electrophysiology techniques in biomedical research

Electrodes for execution by the electric chair

Electrodes for electroplating

Electrodes for arc welding

Electrodes for cathodic protection

Electrodes for grounding

Electrodes for chemical analysis using electrochemical methods

Inert electrodes for electrolysis (made of platinum)

Membrane electrode assembly

Page 6 of 24

brain
brain

Chemically modified electrodes

Chemically modified electrodes are electrodes that have their surfaces chemically modified
to
change
the
electrode's physical, chemical, electrochemical, optical, electrical,
and transport properties. These electrodes are used for advanced purposes in research and
investigation.
PRODUCT:
WELDING ELCTRODE:

Welding electrodes are used in welding various metals in the fabrication of equipment for chemical &
Allied industries, construction of steel structures such as bridges, factory sheds, in the manufacture of
ships, Vehicles and engineering equipment. Mild steel is welded by electrodes to a maximum among
all the metals & Alloys. Therefore M.S. Welding Electrode is the most widely used core wire. Besides
this, special grade electrodes are being developed for specific applications.
Welding electrodes comprise basically of steel core wire and coating ingredients or flux mild steel
core wires are used in majority of unalloyed steel electrodes. Besides mild steel, nickel, Nickelcopper, Nickel irons are also used in MIG & TIG welding. Stainless steel wires are also used for
welding in fertilizer, chemical & surgical instrument making industry. Coating ingredients are basically
rutile, potassium silicate, sodium silicate and minerals like quartz, calcite and mica. Ferro-alloys are
also used in the formulations of fluxes.
The bulk users of welding electrodes are the manufacturers detailed as under:
Welded Tubes & Pipes
Structural fabrication & Construction
Ship & Ship ancillaries
Industrial machinery tools & equipment; and
Misc. users including repairs and maintenance
Welding electrodes are used in different industries viz.
Thermal, hydel & nuclear power plants
Petrochemical Industry
Industrial machinery
Heavy engineering
Transportation
Fertilizers and Oil & water pipe lines

Page 7 of 24

03. SCOPE OF THE PROJECT

The

envisaged

project

is

to

setup

at

Sy

No

10 5/ 11,

Jayakrishnapuram

Vil l a ge , Tek k a l i , S r i k a ku l a m D i s t f o r El e c t r od e s . T h e f i r m i s p ro mo t e d b y M r.
Sanjeevi Sreedhar. The firm acquired the land at, Sy No 105/11, Jayakrishna
Puram

Village,

Tek k a l i ,

Srikakulam

Dist.

The

total

project

out

lay

is

Rs . 110 .0 0 L ac s . T h e in st a lle d c ap a c it y of th e p ro po s e d F irm is 4 MT S p e r da y

in one shift operations in 300 working days and the total annual Capacity of
the proposed Firm is 1200 MTS. The operating capacity is assumed at 65%,
75%, & 85% in 1st, 2nd & 3rd year onwards.

Page 8 of 24

04. CONSTITUTION & SECTOR

CONSTITUTION:
A Proprietary concern by name and style OMEGA WELDING ELCTRODES.
T h e l i n e o f a c t i v i t y i s t o M a n u f a c t u r i n g o f Electrodes. T h e F i r m i s p r o p o s e d
Srikakulam District and Andhra Pradesh. The Firm is a proprietary concen
1. Mr. Sreedhar Sanjeevi

SECTOR:
The Firm comes under Small Scale Sector and also under Priority Sector. The
Firm

has

already

obtained

for

Registration

Certificate

Industries Centre, Srikakulam.

LICENCES AND APPROVALS:

The Firm will obtain the following licenses and approvals.
1.

UDYOG AADHAR.

NOC, from Pollution Control Board.

Inspector of Factories approval.

VUDA approval

V AT/ C S T.

Page 9 of 24

from

the

District

05. BACKGROUND OF THE PROMOTER

PROMOTER:
M/S OMEGA WELDING ELECTRODES, is established by
1. Mr. Sreedhar Sanjeevi

The

promoter

is

well

educated

and

professional

therefore

the

Firm

is

expected to run smoothly. The financial soundness of the promoter w ill

help the speedy implementation of the project as well as smooth running
of the Firm. He is able to raise required funds to meet the margins in long
and short-term requirement of funds.

The Promoter is also capable of

infusing additional funds for the expansion of the Firm at a later state.
Besides the Promoter qualified and experienced managerial personnel will
monitor the day-to-day management of the Firm.

Mr.Sreedhar Sanjeevi::
Sri

Sreedhar

residing
hailing

at
from

Sanjeevi

1-157,

S/o

Sri

Narasimha

Mirapakaya

respectable

Peta,

family.

Marketing and other business.

He

Murthy,

Ravivalasa,
is

having

aged

about

Sriakakulam

43

years,

532

years experience

in

212
the

He is the Sole proprietor of the Firm and he

i s an In c o me Tax as s e s se .

Page 10 of 24

06. LOCATION AND ITS ADVANTAGES

Land:
The

proposed

location

of

the

Firm

is

situated

at

Sy

No

1 05 / 11,

Ja y a k r i s h na pu r a m Vil l a ge , Tek k a l i , S r i k a ku l a m D i s t r i c t an d An dh r a P r a de s h .
The

site

is

located

centrally

notified

backward

area.

The

location

of

the

industry has considerable influence on the techno- economical facility of the

project. There are various factors contributing the functioning of an industry
and following are the primary factors taken into consideration.
Reasons for Selection of the Site:
Adequate Raw Materials
Adequate labor at economical rate.
Adequate supply of water throughout the year.
The site is w ell connected w ith road facility.
Banking facilities and Government supports.
Ad eq ua te Tra n spo rt fa cilitie s fo r e con o mica l tra n sp o rtatio n of fin ish ed
product and spare parts.
Nearest to the market.
Availability of labour at economical rate.
Adequate pow er supply.
As the area is developed, the setting up of an industry in this region
will help the people to progress both socially and economically.

INCENTIVES
Reimbursement of 100% stamp duty and transfer duty paid by the
Page 11 of 24

industry on purchase of land meant for industrial use

Reimbursement of 100% stamp duty for lease of land/shed/buildings,
mortgages and hypothecations
Stamp duty will be reimbursed only one time on the land. Stamp duty will
not be reimbursed on subsequent transactions on the same land
GoAP is committed to supplying uninterrupted 24x7 quality power to all
industries operating in the state.
Fixed power cost reimbursement @ 1.00 per unit for a period of five years
from the date of commencement of commercial production.
Reimbursement of 100% net VAT/CST/SGST for a period of 5 years from the
date of commencement of commercial production to Micro and Small
Enterprises.
Reimbursement of 75% net VAT/CST/SGST for a period of 7 years from the
date of commencement of commercial production or up to realization of
100% fixed capital investment, whichever is earlier to Medium Enterprises
MSME projects engaged in recycling waste into environment friendly
products/energy (such as waste to energy, waste to bio-gas, waste to
manure) will be brought under zero rated category schedule of the VAT Act.
35% subsidy on cost of plant & machinery for specific cleaner production
measures limited to 35lakhs for MSME, provided the measures are certified
by Andhra Pradesh Pollution Control Board (APPCB).
25% subsidy for sustainable green measures on total fixed capital
investment of the project (excluding cost of land, land development,
preliminary and pre-operative expenses and consultancy fees) for below
mentioned green measures with a ceiling of 50 crore.
a) Waste water treatment: Constructing effluent treatment plant and
sewage treatment plant and using recycled water for industrial
purpose, especially zero discharge systems.
b) Green Buildings: Buildings which obtain green rating under the
Indian Green Building Council (IGBC/LEED Certification) or Green
Rating for Integrated Habitat Assessment (GRIHA) systems.
c) Use of renewable source of power (erecting captive sun, wind
and biomass plants etc.).
d) Installing Continuous Emission Monitoring System (CEMS) for red
category industries. The information should be disseminated
continuously to APPCB.
e) Adopting rain water harvesting; restoring water bodies by destilting defunct water bodies.
f) Any other environment management project approved by
Empowered Committee of Secretaries.
An exclusive MSME Policy will be brought out separately to address
the needs of MSME sector

07. RAW MATERIALS

Page 12 of 24

The raw material used in the process of manufacturing of Welding Electrodes is

Mild Steel Wire and Borax.
08. MARKETING
The India welding consumables market is expected to exhibit a CAGR of 5.60% from 2014 to
2020. The markets value as recorded in 2013 was INR30.8 bn. The overall value of the India
welding consumables market is expected to reach INR45.3 bn by the end of 2020. By
volume, the India welding consumables market stood at 255.1 kilo tons in 2013.
The India welding consumables market is segmented according to product type and
application. Among product segments, the India welding consumables market in 2013 was
dominated by welding stick electrodes. It held over 45.0% of the market in 2013. The report
then explains how the demand for wires and fluxes is expected to increase in the near future
due to the advantages that they possess.
The key driver of the India welding consumables market is expected to be the growth of its
end-use industries, especially the building and construction industry. Other drivers include
increasing investment in the oil and gas as well as energy sectors. The report also focuses
on restraints on the India welding consumables market, such as volatility in raw material
supply, advent of international competitors, and a lack of skilled labor.
Welding stick electrodes dominated the welding consumables market in India with more than
45% share in 2013. Stick electrodes are primarily used in manual welding and are a low cost
alternative to other types of welding consumables products. However, demand for wires and
fluxes are anticipated to rise significantly during the forecast period due to their efficient
performance. Factors such as lower wastage, suitability for automatic welding systems and
outdoor work, higher productivity and wide usage among different welding technologies are
likely to lead to increasing preference for solid and flux cored wires. The SAW wires and
fluxes segment is projected to witness moderate growth, accounting for more than 7% share
of the market in 2020. In terms of revenue, flux cored wires is anticipated to be the fastest
growing product segment during the forecast period.
Growth in end-use industries (including transportation, and building & construction) is
estimated to be the key factor driving the welding consumables market in India. Furthermore,
increase in investments in energy and oil & gas sectors is anticipated to boost the welding
consumables market in India. Automobile and transportation sector witnessed the largest
application of welding consumables with more than 25% share in 2013. Power sector is likely
to be the fastest growing segment, expanding at a CAGR of 5.8% during the forecast period

Page 13 of 24

from 2014 to 2020. Other applications such as wear plates and marine applications are
projected to grow moderately in the next few years.

09. MANUFACTURING PROCESS

Wires of different chemical compositions and sizes are obtained from different steel
manufacturers. In electrode making plant, they are chemically cleaned, cut to different lengths (30 the
selling prices of welding electrodes vary according to length of the electrodes and the raw material
used.
There are two methods of applying Flux coating on the core wire, (a) by dipping, (b) by extrusion.
Extrusion method is very fast and economical; produces strong uniform and concentric coatings and
has largely replaced the dipping process.
(a) Dipping method. Number of core wires cut to definite length is clamped vertically in a fixture and
are dipped in a bath of molten flux. When a suitable thickness of the flux gets adhered to the core
wire, the fixture is raised and the flux is allowed to dry.
(b) Extrusion process. Coating ingredients as discussed earlier are mixed up in desired quantities,
binder (often sodium silicate) is added and the resultant mass is brought in the form of a thick,
viscous, stiff paste. This paste is shaped in the form of a cylinder which is fed into the extrusion press.
Core wire and thick paste of flux simultaneously under pressure pass through a die, thus attaching
the flux coating on the core wire. The coating thickness depends upon the die opening and can be
varied. As a next step the flux from the gripping end of the electrode is removed by an electrically
rotated wire brush; after which the electrodes are fed to ovens where they are dried and baked to
remove excess moisture.
The electrodes are thereafter sorted, wrapped in polythene paper, put into packets, and bulk is boxed
into wooden cases. Packets and boxes generally have information about: electrode coding, electrode
size, nature of current and polarity, batch number, name of manufacturer, date of manufacture, etc.

09.1 PROCESS FLOW CHART

PRINICIPAL WELDING PROCESS

Page 14 of 24

FL O W C H A RT:

Page 15 of 24

10. PROJECT COST & MEANS OF FINANCE

Page 16 of 24

Rs in lacs

PAR T I C U L A R S
LAND
BUILDINGS

AMOUNT
OWN
13.00

PLANT
&
MACHINERY
ERECTION
&
E L E C T R I F I C ATI O N
WORKING
C A P I TAL M A R G I N
T O TAL

70.00

PAR T I C U L A R S
C A P I TAL
TERM LOAN

AMOUNT
41.50
68.50

T O TAL

110 . 0 0

10.00
17.00
110 . 0 0

Means of Finance:
Capital
: 41.50
Limits Required
Term Loan
: 68.50
Working Capital : 50.00
Total
: 118.50
Promoters Contribution : 37.72%
Debt / Equity
: 1.65:1

11. DETAILED NOTES ON PROJECT COST

Page 17 of 24

Land:
The proposed Fir m has already taken land & Buildings for own at , 105/ 11,
J a y a k r i s h n a P u r a m Vil l a g e , Tek k a l i , S r i k a k u l a m D i s t r i c t , An d h r a
Pradesh. The location is quite suitable for setting up the Firm.

Buildings:
The promoter wants to construct the civil constructions at an extent of
1266 Sq Ft worth of Rs. 13.00 Lacs
Plant & Machinery
The following machinery worth of Rs.70.00 lacs are required to run the
Firm.

The

Promoters

have

already

approached

reputed

suppliers,

and

obtained quotations and enclosed the same for your reference.

Description
Dry Mixer Ribbon Blender ( 500 Kg)
Wet Mixer 100 Kg
Wire Straightening & Cutting Machine 200
Briquetting Press ( Slug Press)
Wire Feeder (Vertical)
Extruder Horizontal (Twin Cylinder)
Conveyor Unit
Electrode Name Printing Unit
Concentricity Tester
Baking Oven 150 degrees
Wire Drawing Machine (3 Blocker)
Shrink Packing Machine
Box Strapping Machine
Cut Wire Stand
Metal Trays
Pallet Truck 2 ton ( Hand Operated)
Packing table
Weighing scale 300KGs platform
Weighing scale 5 Kgs
Lab Equipment

Unit
Price
in Rs
190000.0
0
205000.0
0
310000.0
0
210000.0
0
475000.0
0
1250000.
00
700000.0
0
70000.00
6000.00
465000.0
0
800000.0
0
140000.0
0
170000.0
0
5000.00
200.00
18500.00
10000.00
28000.00
9500.00
10,00,000
.00

Page 18 of 24

Qt
y.

PRICE
in Rs

190000.0
0
205000.0
0
310000.0
0
210000.0
0
475000.0
0
1250000.
00
700000.0
0
70000.00
6000.00
465000.0
0
800000.0
0
140000.0
0
170000.0
0
20000.00
100000.0
0
37000.00
10000.00
28000.00
28500.00
10,00,00
0.00
6214500.
00

1
1
1
1
1
1
1
1
1
1
1
1
4
50
0
2
1
1
3
LS

HP

60. 00

Excise Duty
CST 2%
Total

651812.5
0
117326.2
5
6983638.
75

Working Capital Margin:

An amount of Rs.17.00 Lacs provided working capital margin in this
project.

The detailed working requirement placed as annexure

12. DETAILED NOTES ON MEANS OF FINANCE

CAPITAL:
The

promoter

contributed

by

capital
the

was

fixed

Promoters

and

at
it

Rs.41.50 Lacs
will

works

out

which
37.72

will

be

of

the

p ro je c t co s t of Rs . 110 .0 0 La c s .
Term Loan:
The unit desires to avail Term Loan of Rs. 68.50 Lacs. from Bank/Financial Institute to meet part cost
of the project cost, which works out to 62.27 % of the total project cost of Rs. 110.00 Lacs. The
amount would be repayable in 28 quarterly installments of Rs. 2.44 Lacs each with a moratorium of
nine months from the date of commencement of Commercial Production. However, the interest on the
term loan would be payable as and when it is applied on the account. The detail of the repayment
programmed is placed in this report.

WORKING CAPITAL LOAN:

The Firm is eligible for working capital loan (cash credit limit) of Rs
50.00 lacs in this project.

Page 19 of 24

13. SWOT

ANALYSIS

Strength:
1) The Firm is proposed OMEGA WELDING ELECTRODES.
2) The Promoters are experienced in the line of activity for over a
decade.
3) The products are essential for engineering works with constant demand.
3) Availability of Labour.
4) Availability of raw material.
B) Weakness:
The

Firm

has

to

compete

with

the

existing

manufactures

in

the

open

market. However, existing Companies are far away from the raw material
source the Firm can compete with them. The Firm is one of its kinds in the
area where the market potential as well as raw material is substan tial.
C) Opportunities:
The Firm has an opportunity to enhance the existing Business and process
products.

(D) Threats:
The

proposed

Electrodes

in

Firm
the

is
Firm

new
has

Firm
to

local

compete

market.
with

the

The

manufacturing

large

malty

of

national

industries, which are in the market. In balance, there is adequate market

Page 20 of 24

share

for

the

possibilities

Firm

of

in

export

view
to

of

other

the

demand

states

supply

keeping

in

gap

and

view

the

also

the

eventual

diversification into the manufacture of high quality of Electrodes. The Firm

would be in a position to counter in the threats if any, because of Govern ment encouragement to small-scale industries.

14. IMPLEMENTATION SCHEDULE:

The schedule of implementation of the project is as under:

S.No
01.
02.

Particulars
Acquisition of Land
Civil Works factory Building, machinery

Month
Start
OWN
NOV 2016

Month
Completion
OWN
NOV 2016

DEC 2016

DEC 2016

Foundation. Auxiliary building,

03.

miscellaneous Building.
Plant & Machinery Indigenous

04.
05.
06.
07.

Placement of Order
Arrangement for Power
Arrangement for Water
Erection of Equipment
Initial Procurement of Raw Material and

NOV 2016
NOV 2016
DEC 2016
JAN2017

NOV 2016
NOV 2016
JAN 2017
JAN 2017

08.
09.

Chemical.
Tra in in g of Pe rso nn e l
Tria l Run

FEB 2017
MAR2017

FEB 2017
MAR 2017

10.

Commercial Production

APRIL 2017

Page 21 of 24

APRIL 2017

15. UTILITIES AND SERVICES

POWER:
The

Firm

requires

60

H . P.

of

power

supply

under

L T.

Limits.

No

problems are anticipated w ith regard to obtaining of pow er supply.

W ATE R :
The Firm requires 1000 Liters of w ater per day, for domestic purpose. A
provision is made for bore well and overhead tank in the scheme under
the head Civil Works.

EFFLUENTS:
There are no harmful effluents generated in the process. Pollution free
industry. No approval is required.

T R A N S P O R TATI O N :
The proposed Firm is located at The proposed site is located 500mts
from NH-5. There is no problem for transportation of raw material and
finished goods.

MANPOWER REQUIREMENTS:
The

Firm

will

administrative

be
staff.

employing
All

the

21
above

No

of

workers

persons

without any difficulties.

Page 22 of 24

can

be

besides

recruited

No

of

locally

16. ASSUMPTIONS
Assumptions underlying for preparation of Financial Statements:
Installed Capacity:
Description of the product
Installed capacity
No of working days in a year
No. of shifts
Installed capacity per annum
Operating Capacity:

ELECTRODES
4 MTS/DAY
300
1
1200 MTS

Operating Capacity is assumed as under:

Year
2017-18(In MTS)
Utilization %
65
Electrodes
780
Cost of Raw Materials:

2018-19 (In MTS)

75
884

2019-20 (In MTS)

85
1001

Raw materials Requirement Description @ 2% loss:

S. No

Description

Qty/MT

Unit Cost(Per

Amount

MT)
1

Core Steel Wire

795.60

19000.00

151,16,400.00

Flux Compound

300.00

20,000.00

60,00,000.00
2 11, 16 , 40 0 .0 0

Stores & Spares:

Stores and Spares are estimated as Rs.8.125 Lacs in a year.
Power & Fuel:
Power and Fuel is estimated as
120x8x300x.746x.80x.60x6.50= 6,70,325.00 Per annum
Wages:
Wages are calculated as under

Page 23 of 24

Supervisor

3 Nos.

x Rs. 10,000/- Per Month = 30,000

Skilled Workers

6 Nos.

x Rs.8,000/- Per Month

Unskilled Workers

15 Nos. x Rs.4,000/- Per Month

=
=

48,000
60,000
__________

1,38,000 * 12

or say

= 16,56,000
: 16.56 lacs

Repairs and Maintenance:

R e p a i r s a n d M a i n t e n a n c e a r e e s t i m a t e d a s R s 3 , 2 5 , 0 0 0 / - P.A .
Administrative Expenses:
Administrative Expenses are estimated as 2% on Sales of Rs.12.48 Lacs
per annum.
It includes telephone, sadar, travelling expenses.
Sale Expenses:
Sale Expenses are estimated as 2 % on sales of Rs.12.48 Lacs

Cost of Sales :
Sales Revenue: Sales estimated as under:
S. No

Description

Qty

Unit Cost(Per

Amount

MT)
1

Electrodes

780 MTS

36,000

280,80,000.00
Or Say 280.80 Lacs

Page 24 of 24