PROJECT REPORT ON COATING DIV & NDT INSPECTION DIV

Project Author:
This project report is authored by Mr. Vivek Naik.

Executive Summery:
This project report covers Setting up of a company in the field of Industrial Coating and Painting Business and as well as NDT ( Non Destructive Testing ) Inspection Services Business. The Project report also includes feasibility of the operations after careful estimation of man power expenses and operational expenses besides investment on establishment. The project report first talks of Specialized Coating Div and later of NDT Services. The project report includes Organization chart with details of services intend to provide under different divisions. Separate flow chart is given for the different processes. The project report covers different options available to the investor for additional services to give an edge to company over the competitors.

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INDEX

Sr. No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Description
Operational Set Up Operational Set Up (Details) Market Definition Major Competitors General Set Up Coating Div General Set Up NDT Inspection Div Mile Stone chart Organization Chart Pipe Coating Flow Chart ( Coating Div)
Process Flow Chart (Coating Div)

Page
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Coating Div: Machinery Requirement Coating Div: Manpower Requirement Coating Div: Profitability chart NDT Div: Machinery Requirement, Manpower Requirement NDT Div: Profitability Chart Feasibility Report Plant Layout Plant Layout Contd.

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OPERATION SET UP: AREA OF OPERATIONS:

A. Specialized Coating Div: B. NDT(Non Destructive Testing)Inspection and Quality Survey Services Div: C. Future Expansion / Business Diversifications

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OPERATION SET UP (details):

A. Specialized Coating Div: TRADING: 1. Sales of Abrasive, Paints 2. Sales of Engineered Polymer product (e.g. Belzona) SERVICES: a. External Pipe wrapping, ( Denso Tape) b. Blasting & Painting of Oil & gas Installations ( Storage Tanks, Pipelines etc) c. Internal coating of Pipes, Rig pipes, Casings & Tubing d. Fire Proof Coating, Intumescent coatings e. Coating of vessels, reactors, tanks f. Maintenance of Painting & Coatings g. Mobile coating services at Site B. NDT Inspection and Quality Survey Services. 1. Equipment Rental Services a. b. c.
d. Heat treatment Machine rental, Pipeline Weld joint Robot, Survey meters for Radio active substances , X-Ray film viewer

2. Inspection Services
a. b. c. d. Heat treatment services Inspection of Pipeline Weld joints with Robot, Radio active substances X-Ray film viewer

C. Diversification Plans.
1. 2. Rubber Products and Services Fireproof/ Explosion Proof Equipments e. Blasting & Painting of Oil & gas Installations ( Storage Tanks, Pipelines etc) f. Internal coating of Pipes, Rig pipes, Casings & Tubing

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MARKET DEFINITION:
Markets for both divisions Specialized Coating Div, & Inspection and Quality Survey Services Div is as follows, Oman is one of the vibrant economy which has withstood adverse weather of global financial crisis due to its very strength. Oman is a balanced mix of new development and already established infrastructure. We are addressing needs of maintenance of infrastructure already established as well as the new upcoming projects. Pipe line being lifeline of the economy, the project related to pipelines are often treated as most important from countrys economical development point of view. Pipe line project is laid with long life consideration. As corrosion remains a major threat to life of pipeline, special efforts are taken for protection of pipe line against possible corrosion be it internal or external. The same it true for the other equipment in Oil and Gas e.g. Crude Oil storage or Diesel/ Petrol storage tank for refinery. Major Market Sectors which will require our services as follows, A. B. C. D. E. F. G. H. PDO Contractors of PDO e.g. Galfar, Arabian Ind, Al-Turki, GPS, City Municipality, Planning Dept (Water Supply) Airport, Sea Port Oil Trading Companies Rural Planning Cross Country Pipelines Private Oil Companies

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MAJOR COMPETITORS:
Major Players in Industrial Coating in Oman, UAE
Sr. No. Name OICC UES OMAN OMAN Year of Operations 35 15 10 5 5 10 5 5 Specialty Competent in all sort of painting and coating, Approved by PDO Competent in all sort of painting and coating, Approved by PDO Competent in specialized painting jobs Competent in specialized painting jobs Competent in specialized painting jobs Competent in specialized painting jobs Competent in Pipeline coating Competent in Pipeline coating Annual Turn Over RO.25 Millions R.O.15 Millions R.O. 10 Millions R.O.10 Millions Dhs 150 Million Dhs 75 Millions Dhs 200 Millions Dhs 200 Millions

1 2 3 4 5 6 7 8

Asha Entp OMAN Nafal Contracting OMAN Thyssencrupp UAE Gopinath UAE APC UAE Bradero Shaw UAE

Major players in NDT Services

Sr. No. Name Sivert India Hi Tech Inspection Al-Khaja Cooper Heat INSPEC ( International) Year of Operations 25 30 10 25 5 Specialty Specialist in all NDT Services Accepted all over world Specialist in all NDT Services Specialist in all NDT services Specialist in all NDT services Annual Turn Over In R O 50 Millions 10 Million 8 to 10 Millions Dhs 50 Millions

1 2 3 4 5 6

Note: Turnover figures are approximate

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General Set up:

COATING DIV: General Setup of the Coating Div includes a Closed shed for the Blasting and Painting facilities. For the efficient mass production of the items for coating e.g. Structures, Tank Shell plates, Pipes, valves etc coating plant design comes in play. The coating factory with international specification is required. There are environmental issues to be addressed while designing of the coating factory. The pollution issues like dust clouds and paint over spray and paint dust in the atmosphere is major issues raised by the authorities and hence effective measures to contain the pollutants is required to be in place. The production of the coating unit depends on the efficient utility of the coating process and the equipment. The efficiency of the coating unit depends on sophisticated coating equipment, experienced & efficient workers and level of process automation. Inspection and Quality Checks are required for the jobs carried in coating factory and hence permanent appointment of QC personnel is mandatory for the coating factory. The factory is required to practice general quality practices observed in coating industry besides specific coating quality requirements bound by coating quality plan approved by client. Packing of the finished goods. Proper packing for the coated items is required as they are prone to transportation and handling damages. Packing instruction of the client are to be followed. Transportation is crucial to all industrial work and hence its necessary to provide adequate budget for transport facility or an arrangement with trustworthy transporter for hired vehicle on requirement.

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General Set up:

NDT INSPECTION DIV: General Setup of the NDT Inspection Div includes a specialized facilities, Highly trained and experienced manpower for carrying out the sophisticated NDT inspection services. International specification is used for most of the NDT Inspection services. There are also environmental issues associated with NDT services like handling of Radio active substances. These major issues are raised by the authorities and hence effective safety measures are required to be enforced in the work place. The NDT services required highly sophisticated machinery and equipment which provide reliable results for clients. The efficiency of the equipment depends on proper handling of the equipment by experienced & efficient workers. Often calibration of equipment is also major requirement. Inspection and Quality services are provided through experienced personnel hence appointment of permanent qualified QC personnel is required for NDT div. Its also required to be approved by client. Transportation is crucial to all NDT services and special facility vehicles are used for carrying radio active sources.

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MILE STONE CHART

FOUNDATION OF COMPANY License , Other formalities

Selection of Place, Building, Staff and Workmen

Purchase of Machinery and Equipment

Building Completion Set up of machines

Client approval formalities & CERTIFICATION

INSPECTION

Other Legal Formalities

ISO Standards & other

CERTIFICATION

INSPEECTION

Operations of company Increase customer base, Increase Profitability of Company complete customer satisfaction

Annual assessment and Directors approvals to future expansion plans

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ORGANIZATION CHART

GOLDEN EAGLE

SP. COATING DIV

NDT SERVICES

TRADING SALES OF POLYMER SALES OF DENSO TAPE

EQUIPMENT RENTAL SERVICES

SERVICES HEAT TREATMENT MACHINES EXTERNAL PIPE COATING INTERNAL PIPE COATING STORAGE TANKS, STRUCTURES PAINTING INSPECTION SERVICES EXTERNAL PIPE WRAPPING (DENSO TAPE) INTUMESCENT COATING FOR BUILDING STRUCTURES HEAT TREATMENT SERVICES INSPECTN, PIPE WELD JOINTS EDDY CURRENT TEST MOBILE COATING UNIT FOR OIL INSTALLATIONS MPI , PT , UT, MFL (Flux Leakage) PIPE WELD JOINT INSP ROBOT SURVEY METERS X- RAY FILM VIEWERS

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PIPE COATING FLOW CHART

RAW PIPE

INTERNAL COATING

INTERNAL BLASTING EXTERNAL BLASTING

EXTERNAL COATING OR WRAPPING

INTERNAL PIPE COATING

EXTERNAL PIPE COATING

FINISHED PIPE COATING

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PROCESS FLOW CHART (Coating Div)

RAW MATREIAL

CLEANING BLASTING
NO

INSPECTION

YES

PRIMING 1ST COAT PAINTING 2ND COAT

PAINTING 3RD COAT

CORRECTION

INSPEECTION FAILED INSPECTION OF FINISHED PRODUCTS

INSPECTION PASSED

DELIVERY

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COATING DIV: Machinery, Equipment and Manpower Requirement: Sr. Machinery No. Description
1 2 3 4 5 3 4 5 6 7 8 Blasting Booth for Manual Blasting Painting Booth for Manual Painting Paint Stores Electrical Compressor Portable compressors Automatic Blasting Machine Forklift Over Head Crane for Shed Blast Pots Spray Pump Inspection Equipment

Specifications

Qty Amount In R.O.

100,000 ---25,000 100,000 50,000 100,000 15,000 20,000 6,000 6,000 10,000

OPTIONAL

9 10 11 12

IR / CP/Atlas Copco 1 Atlas Copco 2 4 Wheel (Wheelabrator) 1 2 Mt X 2Mt Entrance 10 Ton ( CAT/Mitsubishi) 1 25 Ton 1 Air Blast / Blast-line 5 Blast-line 3 Whirling Hygrometer 2 DFT Gauge 3 Metal Temp thermometer 2 Testing equipments Auto wrapping machine Specially Developed for 1 Manual Wrapping Machine our requirement Auto External Pipeline Specially Developed for 1 Painting Machine our requirement Internal Pipeline Painting Specially Developed for 1 Machine with controls our requirement Vehicles Truck, Pick up, Vans TOTAL:

50,000 50,000 50,000 20,000 602,000

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COATING DIV:
Manpower Requirement:

Sr. Description No. Production Manager 1

(QC Inspector)

Responsibility
Managing Div Handling QC issues Communication to client Communication to GM Dealing with local authority Managing Stores, In coming /Out going Mat Managing local accounts, Petty Cash, Generating Monthly Revenue statement Generating MIS Generating DO/ Invoice Dealing with Debtors Dealing with Bank Salary Management Production Scheduling Commitment of Production Communication with QC of client Painting production, Work distribution, Work progress Efficient working of Machinery, Equipment/Machines Maintenance

Yearly Salary
9000

Qty
1

Annual
9000

2 3

Stores Keeper, Document controller Accountant

4000 4000

1 1

4000 4000

Painting Supervisor

3600

3600

Painting Foreman

3000

6000

6 7 8

Painters Blasters Helpers, Riggers TOTAL

2400 2100 1800

3 5 10

7200 10500 18000 54900

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COATING DIV:
PROFITABILITY:

Sr. No. Description 1 Annual Sales Revenue Forecast Annual Service Revenue Forecast 2 Annual Machinery/ Equipment Cost (Depreciated over 5 years) 3 Annual Manpower costing 4 Annual Other Over Heads 5 Raw Material, Consumables

Annual Annual

Amount Amount Amount 480,000 120,000 120,000 60,000 200,000 120,000 500,000 100,000

TOTAL 600,000 Note: Figures are speculative 16% profit at the end of the year. Sales figures will show rise as the operation is fully in swing.

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NDT INSPECTION SERVICES DIV: Machinery, Equipment and Manpower Requirement: Sr. Machinery No. Description
1 Crawler Robot

Specifications
6 10 24 6 Zone, 60 KV 9 Zone, 90 KV 12 Zone, 100 KV 180 KV Panoramic 300 KV Panoramic 300 KV Directional Truck, Pick up, Vans

Qty Amount In R.O.

2 1 1 1 1 1 1 1 1 75,000 100,000 150,000 25,000 30,000 35,000 50,000 50,000 25,000

Heat treatment Machine

3 4 5

X-Ray Tube

Vehicles

50,000 TOTAL: 590,000

Manpower Requirement:

Sr. No. 1 2 3 4 5 6 7

Description
Qualified Inspector & Manager, Quality Supervisor, Document controller Stores Keeper Accountant Site Foreman Machine Operators Helpers, Riggers TOTAL

Annual Qty Annual Salary Cumulative

12000 6000 4000 4000 3000 2400 2100 1 1 1 1 2 3 5 12000 6000 4000 4000 6000 7200 10500 41700

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NDT INSPECTION SERVICES DIV:

PROFITABILITY:

Sr. No. Description 1 Annual Service Revenue Forecast Annual Rental Revenue Forecast 2 Annual Machinery/ Equipment Cost (Depreciated over 5 years) 3 Annual Manpower costing 4 Annual operating cost and Over Heads 5 Raw Material, Consumables

Amount Amount Amount 350,000 200,000 120,000 50,000 200,000 50,000 420,000 130,000

550,000 Note: Figures are speculative 23% profit at the end of the year. Sales figures will show rise as the operation is fully in swing.

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FEASIBILITY REPORT FOR OPERATION:

Sr. No. 1 2

Description Coating Div NDT Inspection Div

Investment on Establishment 600,000 600,000

Projected Revenue Yearly 600,000 550,000

Projected Expense Yearly 500,000 420,000

Projected Profitability Yearly 100,000 130,000

Projected Profitability % 16% 23%

Investment on the Land Property is not considered for above profitability. Yearly revenue figures are tentative figures and are fraction compared to lowest competitors in the field. If proposed revenue is required to be increased multifold it necessitates further investment in Infrastructure (Manpower and Machinery) for efficient production as per requirement. Operation Set up time for machinery will be 12 to 18 Months.

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PLANT LAY OUT This is multi role plant lay out: 1. External Pipe coating Plant:

Salient Features: A. Uniform Paint DFT ( dry Film Thickness) on the pipes. B. Reduction in paint consumption C. Better finish of the Painted pipes. D. More production 1. External/ Internal Pipe coating plant will reduce over thickness of the paint on the external side of the pipe there by providing more quality product besides reducing paint consumption.

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2. Internal Pipe Coating Plant:

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