A. INTRODUCTION
Welding Electrodes are widely used consumables in all industries where welding jobs
are done. The welding electrodes are used in industries where exclusive job works on
welding is done and also in other industries where production operations are conducted.
The consumption of these welding electrodes is increasing in line with the increase in
the industrial production in all the sectors. There is a good scope for this fast
consumable item to be produced in small scale sector.
C. MARKET POTENTIAL
The welding electrodes are used for welding operations in the following industries
1. General engineering workshop
2. Cement plant and machinery manufacturing
3. Sugar plant and machinery manufacturing
4. Ship building industries
5. Chemical and allied industries.
6. Plant and machinery manufacturing industries
D. TECHNICAL ASPECTS
1. Installed Capacity
The proposed installed capacity of the unit is manufacturing 3000 kgs of Welding
Electrodes per day on a single shift basis, 8 hours per day, 300 days in a year. The
product mix proposed is as follows:
1
2.5 mm-450 packets of 60 pcs per packet per day-135 000 packets per annum
3.15 mm-370 packets of 90 pcs per packet per day-110 000 packets per annum
4.0 mm-350 packets of 60 pcs per packet per day- 105 000 packets per annum
5.0 mm-85 packets of 60 pcs per packet per day-25 500 packets per annum
3. Manufacturing Process
The manufacturing involves the following sequence of operations
Wire cutting
I
Binders-Dry flux preparation
I
Wet flux preparation Briquetting
I
Loading wire in Hopper
I
Extrusion of Electrodes
I
Printing
I
Concentricity testing and visual Inspection
I
Baking
2
I
Visual inspection
I
Packing
I
Packing and Despatching
4. Raw Material
The raw materials required for manufacturing Weighing machines are M.S. wire of
various thicknesses namely 2.5 mm, 3.15 mm, 4.00 mm and 5.00 mm. For preparing
the flux various materials such as Rutile Titanium dioxide, Ferro manganese, cellulose,
Potassium /sodium silicate, Quartz, China clay, Magnasite Illuminate etc are required.
These are available from dealers.
6. Utilities
Power:
The total power requirement of the unit will be 90 HP
Water:
Water is required only for human consumption.
Man power:
Category Nos. Monthly Total
salary Salary
Supervisors 1 5000 5000
Operators 5 3000 15000
Unskilled 5 2000 10000
Assistants 2 3000 6000
Security 2 2000 4000
Total 40000
Add 20%benefits 8000
Total 48000
Annually Rs.5.76 lakhs
3
7. Implementation Schedule
If financing arrangements is made available the project can be implemented within three
months period.
8. ASSUMPTION
4
LIST OF MACHINERY SUPPLIERS
1. Sharp Tools
No.9/10, SITRA Road
Sharp Nagar
Kalapatti
Coimbatore-641 035
5. P.K.Vaduvammal
97, Rasappa Chetty Street
Chennai-600 003
5
1. COST OF PROJECT
[Rs.lakhs]
2. MEANS OF FINANCE
Capital 17.31
Term Loan 27.00
44.31
6
3. COST OF PRODUCTION & PROFITABILITY STATEMENTS
[Rs.lakhs]
Years 1 2 3
Installed Capacity (No of packets)
Welding electrodes-2.50 mm 135000 135000 135000
Welding electrodes-3.15 mm 111000 111000 111000
Welding electrodes-4.00 mm 105000 105000 105000
Welding electrodes-5.00 mm 25500 25500 25500
Utilisation 60% 70% 80%
Production/Sales (No.)
Welding electrodes-2.50 mm 81000 94500 108000
Welding electrodes-3.15 mm 66600 77700 88800
Welding electrodes-4.00 mm 63000 73500 84000
Welding electrodes-5.00 mm 15300 17850 20400
7
Profit Before Tax 2.92 10.43 18.41
Provision for tax 1.04 3.72 6.57
Profit After Tax 1.88 6.70 11.84
4. WORKING CAPITAL:
[Rs.lakhs]
Months Values % Margin Bank
Consumption Amount Finance
8
6. BREAK EVEN LEVEL
FC x 100 20.78 80
BEL = x x 100
FC +P 39.19 100