PARTICLE BOARD

CONTENTS
SECTION

PRODUCT CHARACTERISTICS AND SPECIFICATION

SECTION

II

PRODUCT APPLICATIONS

SECTION

III

INDIAN MANUFACTURERS

SECTION

IV

IMPORT/EXPORT LEVEL

SECTION

PRICE DETAILS

SECTION

VI

INDIAN DEMAND

SECTION

VII

BROAD OUTLINE OF MANUFACTURING PROCESS

SECTION

VIII

RAW MATERIAL REQUIREMENTS, UTILITY

AND AVAILABILITY

SECTION

IX

DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

SECTION

SWOT ANALYSIS

SECTION

XI

FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS

SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATION
Source
Particle boards are produced from the agricultural wastes such as rice husk, jute sticks,
waste wood (non-commercial wood waste), sugarcane wastes.
Particle boards can also be made fire resistant by certain chemical treatment.
Properties
Particle boards have many desirable properties such as high density, high surface hardness,
abrasion resistance, high durability etc.
Size
Particle boards are made of different thickness such as 12 mm, 19 mm, and 25mm and
sizes.

SECTION - II
PRODUCT APPLICATIONS
Areas of application
*
*
*
*
*
*

Show cases,
Partitions,
Fridge tops,
Table tops,
Sewing machine covers,
Window-door panels

SECTION - III
INDIAN MANUFACTURERS
A large number of cottage units are in operation producing Particle board in small and
unorganised sector.
There are reported to be more than one hundred units operating at small scale sectors
producing particle board in the country.
*
*
*
*
*
*

The Bakelite Hylam Ltd.,Andhra Pradesh

N.C.L. Industries Ltd.,Andhra Pradesh
Novopan Industries Ltd., Andhra Pradesh
Hans Polyurethanes Limited,Ahmedabnad
Colour-Chem Limited, Mumbai
Ecoboard Industries Ltd.Pune
(Formerly known as Western Bio Systems Ltd.,)

SECTION - IV
IMPORT/EXPORT LEVEL
Port bulletins were carefully scrutinised
No import/exports could be seen

SECTION- V
PRICE DETAILS
Present price level for Particle board
12 mm thick
19 mm thick
25 mm thick

Rs.200 per sq.m

Rs.280 per sq.m.
Rs.350 per sq.m

Taxes and duties : Extra as applicable

SECTION - VI
INDIAN DEMAND
The particle board are alternative to solid wood and ply-wood in various applications.
Particle boards made of cheap raw materials are also used as sealing tiles.
Particle boards can be used in the construction industry, as partition walls, panel boards etc.
Housing Sector
Hotel and entertainment
Commercial buildings like theaters

Around 7.5 million sq.m. per

annum

Indian demand for

Particle board

Growth rate in demand

Around 6 to 7% per annum

SECTION - VII
BROAD OUTLINE OF MANUFACTURING PROCESS
Particle boards are produced largely from agro waste materials, such as sugarcane waste,
jute waste etc.
Such agro waste materials are digested in caustic solution and subjected to vigorous
agitation.
The digested pulp is subjected to pressing in hydraulic press or manual pressing in the case
of tiny units.
The pressed material of specific size and shape is subjected to drying in tunnel type of
dryers or some times dried by solar heating.
Source of technology
*

Central Building Research Institute

(Council of Scientific and Industrial Research)
Roorkee

Major plant and machinery suppliers

Name of the equipment

Name of the suppliers

Hydraulic truck

Deccan Mechanical and Chemical Industries Ltd.,

Flat No.4, A-Wing,
7th Floor, Parsn Manere
602, Mound Road,
Chennai-600 006
Iyappan Engineering Industries Pvt. Ltd.
Chennai-600 098

Digestor

Chemitherm Plants & Systems P. Ltd.,

30, Anandha Street
Alwarpet, Chennai-600 018
Texel Fabricators Pvt. Ltd.,
335, Sidco Industrial Estate,
Ambattur, Chennai-600 098, Tamil Nadu

Boiler

Firetech Boilers Pvt. Ltd.

No.211, 2nd Cross,
38th Main, B.T.M. Layout
2nd Stage, Bangalore-68
8

Dryer

The Anup Engineering Ltd.,

Behind 66 KV Electric Sub Station
Odhav Road, Ahmedabad-382 415
ATRE Thermal Products Pvt. Ltd.,
Pushpa Heights, 1st Floor,
Bibwewadi Corner, Pune-411 037

SECTION - VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY
The raw materials can be sugarcane waste or jute waste etc.
These agricultural residues are not fully utilised at present, hence such raw materials are
available at cheaper prices.
The Indian particle board industries use the recycled waste agro raw -material such as cotton
rags in the form of tailor cutting, hosiery cutting and small quantities of waste paper. Other
agro fibres like jute, straw and banana are also used to blend with the primary fibres for
mottling effect.

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SECTION IX
DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND
PROFITBAILITY PROJECTIONS
Economic Capacity

::

30000 sq.m. per annum

Project Cost

::

Rs. 80 lakhs

Assessment of project cost

1.

Land

S.No.

Description

1.1
1.2

Cost of land of 0.5 acre at Rs.5.5 lakh per acre

Cost of levelling, laying internal roads/fencing and
compound wall
Subtotal

2.

3.03

Building

S.No.

Description

2.1
2.2

Factory building of area 210 sq.m. at Rs.3200/sq.m.

Non-factory building of area 60 sq.m.at Rs.4500/sq.m.
Subtotal

3.

Description

3.1
3.2
3.3
3.4

Cost of basic plant and machinery

Instrumentation and control
Pipelines and valves
Structurals for erection
Subtotal
Octroi, excise duty, sales tax, etc.at 12%
Packaging and insurance charges (2%)
Transportation charges (2%)
Machinery stores and spares (2%)
Foundation charges (2%)
Installation charges (2%)
Total cost of plant and Machinery

4.

Cost
Rs.in lakhs
6.72
2.7
9.42

Cost of Plant & Machinery

S.No.

3.5
3.6
3.7
3.8
3.9
3.10

Cost
Rs.in lakhs
2.75
0.28

Cost
Rs.in lakhs
23
1.73
2.3
1.15
28.18
3.38
0.56
0.56
0.56
0.56
0.56
34.57
Rs.2.00 lakhs

Technical know-how fees

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5.

Miscellaneous fixed assets

S.No.

Description

5.1.
5.2.
5.3.
5.4.
5.5.
5.6.
5.7.

Electrification
Steam boiler and auxillaries
Water storage tank, borewell etc.
Fuel storage tank
Laboratory equipment
Office machinery & equipment
Material handling equipment, packaging machinery,
weigh balance, etc.
Diesel generator
Effluent treatment
Total

5.8.
5.9.
6.

Cost
Rs.in lakhs
3
1.5
0.60
0.50
0.50
0.80
0.6
4.4
1.3
13.2

Preliminary & Pre-operative expenses:

S.No.

Description

6.1.
6.2.
6.2.1
6.2.2
6.2.3
6.2.4
6.2.5
6.2.6
6.2.7

Preliminary expenses
Pre-operative expenses:Establishment
Rent rates and taxes
Travelling expenses
Interest and commitment charges on borrowings
Insurance during construction period
Other preoperative expenses and deposits
Interest on deferred payment
Total

Cost
Rs.in lakhs
0.80
0.80
0.80
0.70
3.50
1.40
8.00

7.

Provision for contingency

Rs.4.32 lakhs

8.

Working capital margin

Rs. 5.81 lakhs

9.

Total project cost

Rs.80 lakhs

10.

Means of Finance

Promoter's contribution
Term loan from financing institutions
Total project cost

11.

Rs.32 lakhs
Rs.48 lakhs
Rs.80 lakhs

Financial statements
12

Cost of production
A

Variable cost

Rs. in lakhs

Raw material and utilities

Spares and maintenance
Selling expenses
Total variable cost (A)
B

29.72
2.06
4.15
35.93

Fixed cost

Salaries and wages

Interest on term loan and working capital loan
Depreciation
Administrative expenses
Total fixed cost (B)

9
11.79
4.88
2.49
28.16

C.

Total cost of production (A+B)

64.09

D.

E.

Selling price per kg. (in Rupees)

12 mmthick
19 mm thick
25 mm thick
Annual sales turnover

Rs.200 per msq.m

Rs.280 per sq.m.
Rs.350 per sq.m
83

F.

Net profit before tax (E-C)

18.91

G.

Breakeven point in %

60%

13

SECTION X
SWOT ANALYSIS
Strength

Ready availability of raw material

Weakness

Need for quality improvement to effectively

substitute conventional product

Opportunity

Eco friendly product

Threat

Uncompetitive price level

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SECTION XI
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND
RECOMMENDATION
Particle board is important eco friendly product that can be used in construction activity.
However, there are a number of other substituting products used in construction sector.
The use pattern of Particle board is bound to be selective and therefore careful demand supply
scenario in the local regions should be made in taking investment decision
The relevant experience and background of the project promoter is of vital importance in such project.

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