MONOLITHIC REFRACTORIES

PRODUCT CODE : 23911 (NIC Code)

QUALITY AND STANDARDS : IS: 10047 – 1981 & IS: 10570 - 2011

PRODUCTION CAPACITY : 1,500 MT (Per Annum)

Value : Rs. 1,82,50,000/-

MONTH AND YEAR : June, 2014

OF PREPARATION

PREPARED BY : Sh. Ambrose Royson

Assistant Director (Glass & Ceramic)

1. INTRODUCTION
Refractory materials are chemically and physically stable at high
temperatures. Monolithic refractories (Refractory Castables) are unformed/
unshaped refractories and are only given shape upon application. These are
materials which consist of precision graded coarse and fine refractory grains. They
are gelled by means of a binder system in the materials green state. Following the
heat-up of the material the binder either transforms or volatilizes facilitating the
formation of a ceramic bond. The most common binder used in castables is high
alumina cement. Other binders that are often used include hydratable alumina and
colloidal silica. The cement-containing castables are often classified by the amount of
cement they contain. Conventional castables can contain around 15-30% cement
binder. Low cement castables contain between about 3-10% weight cement. Ultra
low cement castables contain less than 3% cement component.

2. MARKET POTENTIAL
Monolithic refractories have increased in market share of the total refractories
industry over the last two decades and will continue to do so. The main drivers for
this have been economic considerations (rapid installation time reducing the down
time of a given application, cost of raw materials for their manufacture, less
manpower required in their installation), and the availability of skilled people
within the industry. Monolithic refractories have a countless of industrial
applications throughout the steel, cement, non-ferrous metallurgical, waste disposal
and petrochemical industries. Thus, Monolithic Refractories is having very good
scope in the market.

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3. BASIS AND PRESUMPTIONS

i. It is presumed that the unit will run single shift per day and 300 days in a
year.
ii. The rate of interest has been taken 14% on an average both for fixed
investment and working capital.
iii. To achieve full production 1 to 2 months trial production required.
iv. The salaries and wages, cost of raw material, utilities, rent of the shed etc. are
based on prevailing rates in and around local region at the time of
preparation and are subject to necessary changes from time to time based on
local conditions.
v. The project preparation cost and non-refundable deposits may be considered
under the head of pre-operative expenses.
vi. Economy of the scheme is worked out assuming the product mix as:
a. High Alumina Monolithics (Al2O3 > 70%) : 500 MT (Per Annum)
b. Medium Alumina Monolithics (Al2O3 55 - 70%) : 500 MT (Per Annum)
c. Low Alumina Monolithics (Al2O3 40 - 55%) : 500 MT (Per Annum)

4. IMPLEMENTATION SCHEDULE
The approximate time required for various activities is given below.
However, it may vary from place to place depending upon the local circumstances
and enthusiasm of the entrepreneur:

Period
S. No. Activity
(in Months)
1. Scheme Preparation and Approval 0 - 1st Month
2. Provisional Registration (EM Part I) & Preparation 1st - 2nd Month
of Project Report
3. Sanction of loan 2nd - 5th Month
4. Clearance from State Pollution Control Board 3th - 4th Month
5. Placement of order for machinery and delivery 4th - 5th Month
6. Installation of machines 6th - 7th Month
7. Power connection 6th - 7th Month
8. Trial Run 7th - 8th Month
9. Commercial Production 9th Month onwards
Due to overlapping of some activities, normally 6-9 months are required to
implement the project.

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5. TECHNICAL ASPECTS
5.1. Process of Manufacturing
Raw materials in fine powder form are weighed based on the percentage of
alumina & cement requirement of specific customer. The weighed raw material
batch is transferred to Forberg mixer and mixed for 3 to 5 minutes. The mixed
material is unloaded via vibrating screen to avoid agglomeration. The monolithic
refractory powders are then packed in bags of 20, 25, 50 or 100 kgs each as per
customer requirement. The bags have to be stored in well air ventilated dry place to
avoid any lump formation by moisture.

5.2. Quality Control and Standards

Quality of the Monolithic Refractory products has to be ensured as per
IS: 10047 - 1981 & IS: 10570 – 1979.

5.3. Production Capacity

This scheme envisages manufacturing of 1,500 MT of Alumina Castables per
annum assuming the product mix as:
a. High Alumina Monolithics (Al2O3 > 70%) : 500 MT (Per Annum)
b. Medium Alumina Monolithics (Al2O3 55 - 70%) : 500 MT (Per Annum)
c. Low Alumina Monolithics (Al2O3 40 - 55%) : 500 MT (Per Annum)

5.4. Pollution Control

This manufacturing process does not attract pollution control measure.
However, it is advised to consult State Pollution Control Board and follow the
guidelines offered by them.

5.5. Energy Conservation

Suitable measures should be used for the appropriate use of electricity.

5.6. Motive Power

17.5 HP

5.7. Machinery Utilisation

The capacity utilization is considered to be 80% of the total installed capacity.

6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building: Covered area for workshop, office, stores etc. 3,000 sq. ft. on
rent.

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6.1.1. Machinery and Equipments

Rate Total Price
Description Nos.
(Rs.) (Rs.)
Forberg mixer
Capacity 1 ton 9,00,000 1 9,00,000
6HP electric motor
Vibrating screen
20” diameter, 1 HP motor and 50,000 1 50,000
accessories
Container Elevator
30,000 1 30,000
1 HP motor
Weighing Scale
Platform 25” x 25” 27,000 1 27,000
Capacity 300 kg
Weighing Scale
Platform 12”X12” 7,500 1 7,500
Capacity 10 kg

Laboratory Equipments:
Abrasive Resistance machine 1,20,000 1 1,20,000
Hand Operated Pressing Machine 80,000 1 80,000
CCS Testing Machine 1,50,000 1 1,50,000
Lab Magnetic Separator 10,000 1 10,000
Lab Weighing Scale
5,000 1 5,000
Capacity 3 kg
Lab drier
10” X10” X10” of heating 50,000 1 50,000
chamber
Lab furnace
10”X10”X10” of heating chamber 2,50,000 1 2,50,000
Max operating temp. 14000C
Chemical Analysis Equipment L.S 1,00,000
Total 17,79,500

Electrification and installation @ 10% Rs. 1,77,950

Office equipments and furnitures (L.S.) Rs. 50,000
Cost of auxiliary items (Trolley, Stitching M/c, etc.) Rs. 50,000

Pre-operative expenses Rs. 50,000

Total Fixed Capital Requirement Rs. 21,07,450/-

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6.2. Working Capital (per month)

6.2.1. Land & Building
Building (on rent) (Rs.)
Covered area for workshop, office, stores etc. 3000 sq. feet 30,000

6.2.2. Personnel
Description Nos. Salary/month (Rs.) Total (Rs.)
Works Manager cum
1 20,000 20,000
Marketing Manager
Application Engineer
1 12,000 12,000
(Ceramist)
Accountant/Cashier 1 10,000 10,000
Supervisor (Chemist) 1 12,000 12,000
Skilled Workers 1 10,000 10,000
Semi-skilled Workers 2 9,000 18,000
Un-skilled Workers/Helpers 4 7,000 28,000
Peon cum Watchman 1 7,000 7,000
Total 1,17,000
Perquisites @ 10% 11,700
Total 1,28,700

6.2.3. Raw Material

Description Quantity (MT) Rate (Rs./MT) Total (Rs.)
Calcined Bauxite (Al2O3 ≥ 80%) 1 25,000 25,000
Calcined Bauxite (Al2O3 ≥ 70%) 1.5 18,000 27,000
Calcined Bauxite (Al2O3 ≥ 60%) 5 13,000 65,000
Calcined Bauxite (Al2O3 ≥ 50%) 11 8,000 88,000
Portland Cement 13 6,000 78,000
Cement (40% Al2O3) 9 11,500 103,500
Cement (60% Al2O3) 3 18,000 54,000
White Tabular Alumina 3 45,000 1,35,000
Pyrophyllite (Al2O3:45 - 50%) 58 4,200 2,43,600
Microsil 12.5 10,500 1,31,250
Plastic clay 9 2,500 22,500
Packing Material @ Rs. 200 per MT of Product 25,000
Total 9,97,850

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6.2.4. Utilities
Power: 3,580 units @ Rs. 7/- per unit Rs. 25,060

6.2.5. Other Contingent Expenses

S. No. Description Value (Rs.)
1 Postage & Stationary 1,000
2 Consumable Store 1,000
3 Repairs & Maintenance 1,000
4 Advertisement & Publicity 3,000
5 Transportation 2,000
6 Telephone/ Mobile 1,000
7 Miscellaneous Expenses 2,000
Total 11,000

6.2.6. Total Recurring Expenditure (per month)

S. No. Description Value (Rs.)
1 Building Rent 30,000
2 Salaries 1,28,700
3 Raw materials 9,97,850
4 Utilities 25,060
5 Other contingent expenses 11,000
Total 11,92,610/-

6.3. Total Capital Investment

Total Fixed Capital Rs. 21,07,450
Total Recurring Expenditure (for 3 months) Rs. 35,77,830
Total Rs. 56,85,280/-

7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
S.No. Description Amount (Rs.)
1 Total Recurring Cost per year 1,43,11,320
2 Depreciation on Machinery & Equipment @ 10% 1,77,950
3 Depreciation on tools and fixtures @ 20% 10,000
4 Depreciation on furniture and office equipments @ 20% 10,000
5 Interest on Total Capital Investment @ 14% 7,95,939
Total 1,53,05,209/-

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7.2. Turnover (per annum)

S. No. Item Qty. (MT) Rate (Rs. /MT) Value (Rs.)
1 Low Alumina Castable 500 7,500 37,50,000

2 Medium Alumina Castable 500 11,000 55,00,000

3 High Alumina Castable 500 18,000 90,00,000

Total 1,82,50,000/-

7.3. Net Profit (per annum)

= Turnover – Cost of Production
= Rs. 1,82,50,000 – 1,53,05,209
= Rs. 29,44,791/-

7.4. Net Profit Ratio

Net profit per year
= X 100
Turnover per year

29,44,791
= X 100
1,82,50,000

= 16.1 %

7.5. Rate of Return

Net profit per year
= X 100
Total Capital Investment

29,44,791 X 100
=
56,85,280

= 51.8 %

7.6. Break-even Point

Fixed Cost (Rs.)
Rent 3,60,000
Total Depreciation 1,97,950
Total Interest 7,95,939
40% of salary and wages 6,17,760
40% of other Contingent expenses 52,800
Total 20,24,449

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B.E.P
Fixed Cost
= X 100
Fixed Cost + Net Profit

20,24,449
= X 100
20,24,449 + 29,44,791

= 40.7 %

Addresses of Machinery Suppliers Raw Material Suppliers

1. M/s. MixSep 1. M/s. Monarch International

No. 104, AB Government 217 B, 1st Floor,
Industrial Area, Charkop, Okhla Industrial Estate, Phase 3,
Kandivali West, Mumbai New Delhi- 110020
2. M/s. Thermal Engineering 2. M/s. KERNEOS India
Corporation, E - 168, Kavi 3B- Shrisiti Bldg., 3rd Floor,
Nagar, Industrial Area, 12, Ho Chi Minh Sarani,
Ghaziabad - 201002 Kolkata - 71
3. M/s. Micro-Weigh Engineers & 3. M/s. Meenakshi India Exports
Technologies D-7/226. Chattarpur Hills,
Bajrhi Industrial Area, Dhan Mill Road,
Faridabad - 121004 Delhi- 110074
4. M/s. Sweta Engineers & 4. M/s. Buntrock Industries
Consultancy, Incorporation,
Gurukul Indraprastha Industrial D-201, Nagarjuna Apartment,
Area, Anangpur Road, Mayurkunj, Mayur Vihar,
Faridabad New Delhi- 110096
5. M/s. S.V. Traders 5. M/s. Sahu Silicones & Chemicals
D-48, Saraswati Garden, Ramesh A - 94/7, Wazirpur Industrial
Nagar, New Delhi- 110015 Area, New Delhi- 110052,
6. M/s. Star Material Handling 6. M/s. Mahavir Chemical
Projects, No. 1375, 3rd Floor Industries, 16/3, W. E. A., Abdul
Pocket, GH 1, Sector No. 28, Aziz Road, Karol Bagh,
Rohini, Delhi - 110086 Delhi- 110005
7. M/s. Karamson Engineering
Corporation
No. 3/24, Kirti Nagar, Industrial
Area, New Delhi - 110015
8. M/s. A.S.I. Sales Private Limited
M - 8, Shivam House, B - 2,
Karampura Complex
New Delhi - 110015

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