PROJECT PROFILE

ON
DOMESTIC UTENSILS ALUMINIUM
**********************

PART-I
NAME OF THE PRODUCT

DOMESTIC UTENSILS ALUMINIUM.

PRODUCT CODE

QUALITY & STANDARD

As per BIS No. 1660 (Part-1)-1982

for Wrought Aluminium Utensils. .

PRODUCTION CAPACITY

The production capacity of the unit at 75%

capacity utilisation.
Quantity:

270 MT

Value:

Rs.4,72,50,000/-

MONTH & YEAR OF

PREPARATION

January, 2013.

PREPARED BY

MSME - Development Institute,

Ministry of Micro, Small & Medium Enterprises,
Government of India
107, Industrial Estate, Kalpi Road,
Kanpur-208012.

Tele. 2295070, 2295071 & 2295073 (EPBAX)

Tele. No. 2295072 (SENET & TRC)
Tele/Fax No.: 0512- 2240143
email: dcdi-kanpur@dcmsme.gov.in
Website: msmedikanpur.gov.in

PROJECT PROFILE
ON
DOMESTIC UTENSILS ALUMINIUM
**********************

PART-II
A. INTRODUCTION:
Domestic Utensils, as the term indicates, are used for household purposes like
cooking, storing water, preparing hot water etc. and these utensils are made mostly
out of non-ferrous metals like aluminium, brass and copper as well as out of
stainless steel. Out of all these metals, aluminium utensils are largely and widely
used by people from all walks of life especially middle class, lower middle class,
weaker sections and labourers, due to its cheapness and convenience. Stainless
steel utensils also find a place in domestic use, but they are used mostly by well to
do families and to some extent by middle class families. Aluminium utensils are
mostly accepted by all classes of people when compared with utensils of other
metals. These utensils are also preferred by catering organizations like hotels,
restaurants, canteens, defence, railways etc. Though these establishments do
replace a few items of aluminium with stainless steel ones, but for cooking purpose
aluminium is still preferred.

B. MARKET POTENTIAL:
Aluminium domestic utensils are used widely in both urban and rural areas. These
utensils fetch some money even after use. They are more durable compared to
earthen wares. Due to its durability, cheapness and other factors, these items find
market in all places without much difficulty. There are no specific areas for marketing
these items and they can be sold both in rural and urban areas. The market for
aluminum utensils will depend mostly on the increase in the population. As the
population in the country is increasing steadily the market for this item will also
increase. Besides, the changing life style of people also is a factor that increases the
demand for aluminium utensils. Hence, there is good market potential for these
utensils.

C. BASIS & PRESUMPTIONS:

The unit is expected to work 8 hours a day and for 300 days in a year and the details
are worked out accordingly.

D. IMPLEMENTATION SCHEDULE:
The following steps involves in the implementation of the project:I.

II.
III.
IV.
V.
VI.

Preparation of Project Reporta)

Inviting quotation
b)
Project Report Preparation
Provisional Registration of SSI
Financial arrangement
Purchase and Procurement of machinery
Installation, Electrification of machine
Production Trials
Say

:
:
:
:
:
:
:
:

6 Weeks
2 Weeks
1 Weeks
12 Weeks
12 Weeks
6 Weeks
2 Weeks
41 Weeks
9 months

E. TECHNICAL ASPECTS:
1. Process of Manufacture:
The process of manufacture comprises of the following operations
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)

Melting of aluminium ingots and scrap.

Casting into slabs with the help of cast iron moulds to sizes.
Slabs are pre-heated and then rolled to intermediate gauge sheets / plates in
the hot rolling mill.
Sheets of finally required gauge are obtained by re-rolling in the cold rolling mill.
These sheets are cut into the shapes of square blank of circles.
These circles blank sheets are annealed before sending them for further
processing.
Feeding circles to press / spinning.
Pressing different items.
Spinning operation for different items.
Surface finishing.
Storing and dispatch.
The scrap generated in the unit will be recirculated.

2. Quality Control & Specification :

Commercial grade aluminium of purity 99 to 99.5% in the form of sheets / circles of
16 to 20 SWG are most suitable for manufacture of utensils. Unidentified scrap
having copper, zinc or lead should not be used as this not only deteriorates the
quality of the utensils but harm human health also. If the aluminium scrap selected is
not of food quality, wastage of raw materials will be more, due to rejection in the
manufacturing stage.
Indian Standards Institution have formulated ISS No. 1660 (Part-I)-1982 for Wrought
Aluminium Utensils.

3. Production capacity (per annum)

This scheme proposes to have the rolling of aluminum sheets as well as the making
of utensils in single factory and envisages an annual production of 270 MT of
domestic aluminum utensils. This profile can also be made in to three different
independent profiles for exclusively rolling, exclusively pressing, exclusively spinning
or a combination of two or all of them. The promoter can choose the profile
according to this needs and capacity.

4. Total Power requirement- 5 KW

5. Pollution ControlMajor steps will be required to control pollution.

6. Energy ConservationSuitable efficient electrical motors should be used in machines with suitable shunt
capacitors.

F. FINANCIAL ASPECTS
i) Fixed Capital

Land & Building

Land & Building

600 sq. mtr.

@50/-

30,000/-

5
ii) Machinery & EquipmentSl.
No.

Description

1.

Oil fired pit furnace with burners over head oil tank
pipe fittings etc.

30,000

2.
3.
4.

Blower with 3 HP Motor

Oil-line preheater
Annealing Furnace 1800 X 600 mm for annealing
sheets and circles.
Aluminium Hot rolling Mill heavy type fitted with
forged rolls size 350X 900 mm with fly wheel 40 HP
motor starter & switch.
Aluminium cold rolling mill 350 X 900 mm High
carbon high chromium Steel Rolls Heavy duty with
40 HP electric motor, starter ands switch.
Hand operated sheering Machine 900 mm
Circ le cutting machine with motor
Hand fly press No. 4 for light punching
Double action deep drawing power press 100 MT
with 15 HP motor, starter etc.
Spinning Lathe Centre height 350 mm
Electronic weighing Machine up to 1000 kg capacity
Centre Lathe 2.5 M bed
Piller drilling machine 25 mm capacity
Arc Welding Transformer 300 Amps
Bench Grinder 200 X 25 mm wheel size
Total:
Installation & Electrification @ 15%
Pre-operative expenses
Total:
Tools & Dies
Cast iron moulds for slabs
Deep drawing dies
Spinning dies
Acid Tank
Spinning tools
Measuring & Testing equipments

1
1
1

15,000
25,000
30,000

1,50,000

2,00,000

1
1
1
1

20,000
25,000
78,000
2,00,000

1
1
1
1
1
1

25,000
25,000
40,000
10,000
15,000
5,000
6,83,000
68,300
20,000
7,71,300

5.

6.

7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.

Qty.
(Rs.)

Furniture:
1. Working Table
2. Office Furniture
Total:

Amount
(Rs.)

20,000
50,000
10,000
5,000
5,000
5,000

15,000
20,000
9,01,300

WORKING CAPITAL (per month):

(a) Personnel:
iii.

Designation
Manager
Engineer
Supervisor
Skilled worker
Semi-skilled Worker
Peon
Watchman

No.

Salary

1
1
1
7
4
1
1

Total (Rs.)

25000
20000
6000
5000
4000
3500
3500
Total:

25,000
20,000
6,000
35,000
16,000
3,500
3,500
81,000

(b) Raw material including packaging materials (per month):

Sl.
No.
1.
2.

(c)

Commercial grade aluminium

Ingots
Aluminium Scrap

Qty.

Rate

Amount Rs.

15 MT

130000/MT

19,50,000/-

10 MT

120000/MT
Total:

12,00,000/31,50,000/-

Utilities ( per month):

1.
2.
3.

iv.

Items

Electricity @ Rs. 6.00 per unit

Furnace Oil 3200 Ltrs.
Coal

90,000/80,000/40,000/2,10,000/-

Other contingent expenses ( per month):

1

Rent

30,000/-

Repair & Maintenance

10,000/-

Consumables

10,000/-

Transportation & conveyance

10,000/-

5
6
7

Advertisement
Postage & Stationery
Misc. expenses

2,000/2,000/2,000/66,000/-

Total:

v.

Total recurring expenditure ( per month)

1.

Personnel

81,000/-

2.

Raw Materials

3.

Utilities

4.

Other Contingent Expenses

31,50,000/2,10,000/66,000/Total:

33,18,000/-

vi. TOTAL CAPITAL INVESTMENT:

I.

Fixed Capital

II.

Working Capital

9,01,300/33,18,000/Total:

42,19,300/-

Say;

42,19,000/-

G. FINANCIAL ANALYSIS:
1.

Cost of production ( per annum):

Total Recurring expenditure
Depreciation on machinery and equipment @ 10%
Depreciation on office furniture & fixture @ 20%
Interest on capital investment @ 13%
Total :

2.

3,98,16,000/77,130/26,000/5,48,470/4,04,67,600/-

Turnover ( per annum):

Item

Qty.

Rate (Rs.)

Finished Utensils

270 MT

175000/MT

Value (Rs.)
4,72,50,000/-

3. NET PROFIT: (p.a.)

Turn Over

(-)

Cost of Production

4,72,50,000/-

(-)

4,04,67,600/-

67,82,400/-

4.

5.

Net Profit ratio:

Profit/annum X 100

67,82,400/- X 100

Turnover/Annum

4,72,50,000/-

14.35

160.75%

Rate of Return:
Net Profit/annum X 100

67,82,400/- X 100

Total Capital Investment

42,19,000/-

6.

Break even Analysis:

i.

Fixed cost
1.
2.
3.
4.
5.

ii.

Rent
Total depreciation
Interest on total capital investment @ 13%
40% of Salary & Wages
40% of other contingent expenses (excluding rent)
Total:-

Rs.
30,000/Rs. 1,03,130/Rs. 5,48,470/Rs. 3,88,800/Rs. 1,72,000/Rs. 12,42,000/-

Break even point

Fixed Cost X 100

12,42,000/- X 100

Fixed Cost + Profit

12,42,000/- + 67,82,400/-

13.4%

ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS:

1.

M/s Shubh Machinery Corporation Pvt. Ltd.,

15, Bank Street, Fort, Mumbai-1.

2.

M/s G.D. Iron & Metal Works,

P.B. No. 6,
D.B. Nanak Road, Batala.

3.

M/s Henco Corporation,

308, Bazar Gate Street, Mumbai-1.

-do-

4.

M/s Quality Machine Tools,

25, Hampur Street, Fort, Mumbai-1.

-do-

5.

M/s Deep Industrial Corporation,

510, Deep Road, Industrial Area, B,
Ludhiana-3.

-do-

6.

M/s R. K. Machine Tools (P) Ltd.,

Industrial Area-A, Ludhiana-3.

-do-

7.

M/s Rama Industries,

Rewari, Haryana.

-do-

8.

M/s Batliboi Co., (P) Ltd.,

26/59, Birhana Road, Kanpur.

For Furnace, Oven

Pyrometer etc.

9.

M/s M umbai Furnace (P) Ltd.,

Meera , Thana, Maharashtra.

-do-

10.

M/s New Standard Engg. Co. Ltd.,

N.E.S. Estate, Goregaon, Mumbai-43.

-do-

11.

M/s Wesman Engg. Co. (P) Ltd.,

Peddar Road, Mumbai-20.
M/s Therelak Furnaces (P) Ltd.,
A/131, Wagle Industrial Estate, Thana. Maharashtra.

-do-

12.

Names & Address & Raw Material Suppliers:

1. M/s Hindustan Aluminium Corpn.,
P.O. Renukot U.P.
2. Indian Aluminium Corpn., Alwaye, Kerala.
3. Chennai Aluminium Corpn., Mettur Dam, Tamil Nadu.
4. Bharat Aluminium Co.

********

For rolling Mills, Deep

drawing presses, power
presses lathe etc.
-do-

-do-