1
PROJECT PFORILE
ON
LIGHT WEIGHT AGGREGATE (LWA)
`/
FOR
DESAI CONSTRUCTION PVT LTD
Construction House
PO Box No 17
Opp. New GIDC NH No.8
GUNDLAV 396 035
VALSAD (GUJARAT)
By
Bhuvaneshwari Mineral Consultancy
212, Sur-SarthiBusinessManagementCenter
Opp Central Bank of India, Ambawadi Circle
Ahmedabad 380 006
Ph: (079) 26465570, E-mail:
1
CONTENTS
SR NO / PARTICULARS / PAGE NO.I / Product and Application / 1
II / Manufacturing Process with Processing Line / 2
III / Location of the Plant and Capacity / 4
IV / Market Potential / 5
V / Raw Material / 5
VI / Chemical Additives / 6
VII / Technology and Testing / 7
VIII / Raw Material, Fuel Price Structure and Specifications / 8
IX / Plant and Machinery / 9
X / Utilities / 10
XI / Project Cost / 10
XII / Financial Projection / 11
XIII / Machinery Suppliers / 14
XIV / Raw Material Suppliers / 14
XV / Existing Units / 15
1
PROJECT PROFILE
ON
LIGHT WEIGHT AGGREGATE (LWA)
[1]Product & Applications
They are aggregates minerals, natural rock materials, products and by-products of manufacturing processes used as bulk fillers in light weight structural concrete, concrete masonry units, pre-cast concrete structural products road surface materials, plaster aggregates and insulating fill.
It also includes used in architectural wall covers, suspended ceilings, light-weight structural fill, soil conditioners and other agricultural uses.
Light-weight aggregate materials are generally classified into four groups i.e. (1) Natural, (2) Manufactured Structural, (3) By-product and (4) Manufactured ultra insulating.
Desai construction Pvt Ltd intends to manufacture natural light-weight aggregate of different density which are mostly bulky, have low unit value and normally serve local and regional markets. One ton of light weight aggregate will normally make two to three times as much concrete end products as it of natural-weight aggregate compression between two is one volume basis and four time expensive than normal. It will be produced in two categories i.e. (1) Coarse and (2) Fine.
Physical expansion rotary plant generally prefers local available materials eg. Diatomite, siliceous clay, fly-ash, vermiculite pumice natural material.
Diatomaceous clay is mined in Bhavnagar district by Shree Minerals, Ahmedabad.
Siliceous clay is mined by Rajasthan lease holders at Jodhpur-Jaisalmer belt.
Pumice is also mined at Patan Vaav, Survey No. 453 in UJpleta taluka of Rajkot District by same Shree Minerals.
Vermiculate is also mined in Jabua in Madhya Pradesh, Andhra Pradesh and Rajasthan.
Ukai Thermal Plant fly ash from ECP can be considered for the input. Company main application is for masonry purpose.
The final product Standard Industrial Classification(SIC) code for light weight aggregate manufacturing is 3295.
[2]Manufacturing Process with Processing Line
LWA is a type of coarse aggregate that is used in the production of light-weight concrete products such as concrete block, structural concrete and pavement. The SIC code for light weight aggregate manufacturing is 3295;
Most light weight aggregate is produced from material such as clay, shale or slate. Blast furnace slag, natural pumice, vermiculite and perlite can be used as substitutes, however. To produce light weight aggregate, the raw material siliceous clay, is expanded to about twice the original volume of the raw material. The expanded material has properties similar to natural aggregate, but is less dense and therefore yields a lighter concrete product.
The production of lightweight aggregate begins with mining or quarrying the raw material. The material is crushed with cone crushers, jaw crushers, hammer mills and is screened for size. Oversized material is returned to the crushers and the material that passes through the screens is transferred to hoppers.
From the hoppers, the material is fed t a rotary kiln, which is fired natural gas, 1200° C (2200° F). As the material is heated, it liquefies and carbonaceous compounds in the material from gas bubbles, which expand the material; in the process, Volatile Organic Compounds (VOC)is released. From the kiln, the expanded product (clinker) is transferred by conveyor into the clinker cooler where it is cooled by air, forming a porous material. After cooling, the light weight aggregate is screened for size, crushed if necessary, stockpiled. Flow sheet is narrated below.
Process of Flow Diagram for Manufacturing
Although the majority (a0pprox. 90%) of plants use rotary kilns. In addition, a few plants process naturally occurring lightweight aggregate such as pumice, diatomaceous, vermiculite in the state in the city at Makarpura (Vadodara), Ranip (Ahmedabad, company desires to utilise Diatomaceous clay of Rajasthan.
Emissions from the production of lightweight aggregate consist primarily of Particulate Matter (PM), which is emitted by the rotary kilns, clinker coolers and crushing, screening and material transfer operations. Pollutants emitted as a result of combustion in the rotary kilns include sulfur oxides (SOx), Nitrogen (NOx), Carbon Monoxide (CO), Carbon Dioxide (CO2) and VOCs Chromium, lead and chlorides also are emitted from the kilns.
Emissions from rotary kilns generally are controlled with wet scrubbers. However, fabric filters and Electrostatic Precipitators (ESP) are also used to control kiln emissions. Multiclones and settling chambers generally are the only types of controls for clinker cooler emissions.
[3]Location of the Plant and Capacity
The company has its own plot in GIDC at Gundlav, Valsad. It is intended to erect rotary kiln and raw material rushing and screening section in the own NA area for the 500 cum per day e.g. 1,50,000 cum per annum final product capacity material LWA with target of 1000 kg/cm3 .LWA DENSITY VARIATION will be 450kg/m3 to 1200kg/cm2
[4]Market Potential
LWA with compressive strength ranging from 20-50 MPA (Clark JB 1933 UK) main market is in civil construction. The advantages are (1) reduced mass, (2) improved thermal, sound insulating properties with maintenance of adequate strength.
It allows size reduction of structural elements, less reinforcing steel and reduced volume of concrete with a result in overall cost reduction considering above benefits the item has wide market (1) Roof in earth-quake prone areas, (2) internal plaster, (3) External plaster, (4) non-structural internal wall & partitions, (5) Acoustic Ceiling boards, (6) Home, (7) building, (8) Highway and (9) bridge deck construction.
In western India, construction side residential, highway, bridges sector demand for LWA item and its production capacity, there exists wide gap due to cost parameters.
Per capita consumption of concrete is 1.5 ton per annum in India. Gujarat has become earth-quake-prone and thus reduces the self-weight of various structural elements of building, bridges or any other structure can substantially, reduced changing economy as well as safety.
Diatomaceous clay or pumice powder can be sourced from the Shree Minerals, Navyug Society, Nr. CN Vidhyalay, Ahmedabad 380 015.
[5]Raw Material
DCPL initially intends to purchase inorganic natural siliceous clay, diatomite, pumice, vermiculite, flay ash, material from the open market with benefication/processing line at factory.
From above material, fly-ash can be sourced from Ukai Thermal Power Plant from the direct ECP System. GEB fly-ash central unit at Vadodara office can be approached.
To develop LWA, it is essential to study expansion characters of input material, its price, quality and transport cost to the factory site, In addition, energy cost of fuel for the rotary kiln. Initially trial testing as per IS 383 has to be done for the final product. Cement, manufacturingsand and chemicals are the other input material which can be sourced from the open market at reasonable cost for the economic viability of the project.
Siliceous clay can be purchased from the Maruti Enterprises, Sindhari Circle, Nr. Old Woolen Mills, Barmer (Rajasthan 344 001. material has 504 kg/M3 bulk densioty at very cheaper rate.
Diatomaceous clay or pumice powder can be sourced from the Shree Minerals, Navyug Society, Nr. CN Vidhyalay, Ahmedabad 380 015.
Third Vermiculite can be sourced from Rajasthan and Andhra Pradesh with good quality.
Out of narrated low density material, it is beneficial to use siliceous clayOut of narrated low density material, it is beneficial to use siliceous clay material of Rajasthan as transport and cost of the material will be cheap. But raw and expanded material engineering properties have to be tested for the concrete formulation in the Lafarge Construction Development Lab (Andheri, Mumbai). To finalise the selection and source of low density, expanded material mineral for the formulating, company has to tests concrete testing norm at Gujarat Engineering Research Institute (Vadodara) after expansion test in Muffle Furnaceup to 1200° C to 1400° C at Lab scale.
[6]Chemical Additives
Inorganic Chemicals: Silica Fume, Fly ash, Slag and Met Kaolin,
Organic Chemicals : Polyethylene-glycol, Polystyrene, Hydroxymethyl Cellulose, HydroxylPropel Methyl Cellulose, Polysaccharides, Synthetic Hydrophobic Polymers, Polyvinyl Alcohol, Polyethylene Oxide and Poly Pyrolene Oxide..
One of the above chemical from the above list is added from 9% to 10% by volume in formulation.
[7]Technology and Testing
Formulation trial for expanded low density expanded material with manufacturing sand, cement will evolve M95 Grade coarse LWA concrete for civil work application internal plaster (single coa 10-12 mm. double coat 15-20 mm) external plaster (smooth and textured finish), Acoustic ceiling boards, light weight filling in sunk and terraces, light weight roof construction in earthquake prone areas.
The final product has many advantages e.g. Light weight, thermal insulation, fire retardant, noise reduction and durable.
Starting siliceous clay material and final expanded item testing for grading, impact, soundness, loss Angelis abrasion, Alkali reactivity, crushing value ball density, water absorption, crushing strength have to be carried out at Material Testing Unit, Hydraulic Division of Gujarat Engineering Research Institute, Alkapuri, Vadodarafor the 95 383 as per IS 456-1978. for expansion of the material at 1200º to 1400º C trial can be taken at Central Glass & Ceramic Research Institute, Naroda Center, Ahmedabad or at private vendors factory and after recovering expanded product above narrated tests may be carried out for the formulation of the aggregate and cement, sand ratio purpose.
Technology for the final product can be taken up from Lafarge Aggregates and Concrete India Pvt Ltd, Kula (West), Mumbai 400 070 or Lafarge Construction and Development Lab (Andheri) (022-61410100).
The final product has many advantages eg. Light weight, thermal insulation, fire-retardant, noise reduction and durable.
[8]Raw Material, Fuel Price Structure and Specifications
Diatomaceous clay available at Jodhpur and Barmer is mined in Rajasthan between Jodhpur-Jaisalmer belts. It is available at mine site @ Rs.300 to 450 per ton plus transport and VAT to factory. Raw vermiculite raw is available at Ajmer is Rs.4000/MT; even expanded vermiculite of different density is available at Rs.7000/Ton plus transport plus VAT. Considering raw material price, the company can give preference to diatomaceous clay. Operating rotary kiln gas is costly per 1 kg. Cost will be Rs.7/-. While coal/lignite fuel it will worked out Rs.2/KG. Fuel is considered as coal.
Specification
Bloated clay with proven performance in structural concrete specification is IS-456-1978. The main requirement of LWA is their low density; some specifications limit the bulk density to 1200 kg/m3 for fine aggregates and 960 kg/m3 for coarse aggregate for use in concrete. Both aggregate may be light weight.
Light with coarse aggregate can e used with material sands.
i)It has high absorption of water due to presence of closed pores or voids in the material.
ii)LWA will absorb part of mining water. The water in mixer will not be available for the reaction with cement.
iii)In mixing the required water and LWA are usually pre-mixed prior to addition of cement.
iv)Rough guide extra 6 kg/m3 extra water is needed to obtain change in workability of 25 mm slump.
v)In case of LWA 10% more deflection in case of slab under same super imposed loading.
vi)Lower tensile strength of LWA in design for calculation of allowing cracking stress for pre-stressed members.
[9]Plant and Machinery
Sr No / Particulars / Qty (Nos) / Price (Rs.Lacs)1 / Rotary Kiln Plant / 1 / 290.00
2 / Hammer Mill / 1 / 5.50
3 / Vibrating Screen / 1 / 2.00
4 / Vibrating Grizzly Feeder / 1 / 1.00
Total / 298.50
On getting the pricings from different suppliers available in the market, the above stated machineries cost works out to Rs.298.50 Lakhs.
Laboratory Equipment
For manufacturing quality product, it has been worked out that separate Laboratory Equipment shall require to be procured. It has been proposed that laboratory equipments will be procured as suggested by the technical Expert and all such equipments will be purchased from Local Market. The total costs of such equipments have been envisaged at Rs. 20 Lakhs.
Working Capital Requirement
It has been assumed that during the first year of operation the unit shall work at 60% capacity .For this, the unit shall need to keep the stock of finished goods for smooth functioning of the unit 15 days’ production of finished goods which works out to Rs.26.60 Lakhs.. Considering the first year turnover of the unit at Rs.4320Lakhs the debtors shall have to be kept for a period of 15 day’s sales which works out to Rs.180 Lakhs. It has been assumed that promoters will be getting credit of 1 month purchase of raw materials from the supplier which works out to Rs.33.75 Lakhs. Further, it has been worked out that for maintaining day to day affaires company shall need working capital of Rs.44.75 Lakhs. Thus the total fund which shall be blocked in working capital shall be Rs. 180+26.60+44.75 = Rs.251.35 Lakhs less Rs.33.75 Lakhs (Creditors) This works out to total Rs. 217.60 Lakhs as working capital for the company. As the promoters have decided to fund such requirements from their own sources Rs. 217.60 Lakhs have been considered as part of the cost of Project.
[10]Utilities
The unit shall need the following utilities:
Power
The project will need 11 KV unit line for section.
Manpower
For setting up the project unit shall need to have 5 skilled as operator and 10 unskilled staff. In addition, the unit shall need other technical staff, details where off has been given as follow.
Sr No / Particulars / Qty (Nos)1 / Production Manager / 1
2 / Quality Control Manager / 1
3 / Store In-charge / 1
4 / Kiln Operator / 2
5 / Admn Staff / 5
Total / 5
[11]Project Cost
It is envisaged to manufacture 500 cubic meters per day LWA of low density of 450 kg m3 to 1000kg m3.
Sr. No. /Particulars
/ Amt.(Rs.in lacs)
1) / Land & Land Development / Nil
2) / Factory & LaboratoryBuilding / 97.50
3) / Processing Plant & Machinery / 298.50
4) / Laboratory Equipment / 20.00
5) / Working capital Requirement / 217.60
Total / 633.60
The proposed unit will require the infrastructure as explained above. The details of individual assets have been given here under:
Land & Land Development
The Company has its own NA land of 40,500 sq. mtrs. at Gundlav GIDC Valsad. Since land is already developed promoters need not to spend any money for the land development.
Factory & LaboratoryBuilding
The plant shall need 1000 sq. mtrs for Office, Laboratory and Factory Shed. Whereas, it has been worked out that for Office-Cum Laboratory testing facility for storage and Factory Shed, The unit shall further need 500 sq. mtrs of construction. The cost of construction for the said project works out to Rs.97.50 Lakhs.
[12]Financial Projection
Sr No / Particulars / 1st Year / 2nd Year / 3rd Year1 / Capacity Utilization / 60% / 70%^ / 80%
2 / Actual Production (Qty in Cu. Mtrs.)(Light Weight Aggregate) / 90,000 / 1,05,000 / 1,20,000
3 / Sales Turnover (Rs.lacs) / 4320.00 / 5040.00 / 5760.00
4 / Raw Material Cost (Rs.lacs) / 405.00 / 472.00 / 540.00
5 / Other Cost (including electricity, wages) (Rs.lacs) / 232.45 / 260.20 / 290.25
6 / Operating Profit (Rs.lacs) / 3714.1 / 4321.70 / 4948.85
Assumptions
1)The installed capacity of the proposed unit has been worked out at 500Cubic Mtrs. per day. The total number of days of effective production has been considered at 300 days. Thus at 100% capacity utilization the unit can upgrade 1, 50,000 Cubic Mtrs. Light Weight Aggregate final product.
2)It has been assumed that during the 3 years of working the unit shall work at 60%, 70% and 80% capacity respectively. The details of actual production for all the 3 years have been worked out in the above paragraphs considering the same.
3)At present, the sales price of the Normal Aggregate in the market is Rs. 3200 per cu. Mtrs. whereas, Light weight Aggregate is available in the market at the rate more than two to three time higher than the normal rate. However, while calculating the projection the rate has been taken at one and half time the normal rate to use conservative approach. Thus, sales turnover has been calculated on the basis of the projected sales price of the product.
Sales Price: Light Weight Aggregate Rs.4,800 per Cubic Meter.
4)Other cost includes the cost of wages to the workforce, cost of electricity, other manufacturing expenses and the depreciation on the fixed assets. The cost has been worked out in the Profitability statement attached to the profile.
5)While working the operating profit, the cost as to other overheads as to selling & distribution have been worked out based on the projected details as available from the discussion. The details have been shown in Annexure-1 to this report. Detailed project Report shall give the proper shape to the unit.
Statement Showing Profitability of the Unit For A Period of 5 Years
(Rs. In Lacs)
Sales / 1stYear / 2nd
Year / 3rd
Year / 4th
Year / 5th
Year
Sales / 60% / 70% / 80% / 80% / 80%
REVENUE / INCOME
Gross Domestic Sales
(Light Weight Aggregate ) / 4320.00 / 5040.00 / 5760.00 / 5760.00 / 5760.00
Other Income / 5.00 / 10.00 / 15.00 / 15.00 / 15.00
TOTAL REVENUE / INCOME / 4325.00 / 5050.00 / 5775.00 / 5775.00 / 5775.00
EXPENSES / COST OF OUTPUT
RAW MATERIAL
Cost of purchase-Diatomaceous clay / 405.00 / 472.00 / 540.00 / 540.00 / 540.00
Other Mfg. Cost (2%) / 8.00 / 10.00 / 12.00 / 12.00 / 12.00
Consumables Stores and spares (1%) / 4.00 / 5.00 / 6.00 / 6.00 / 6.00
TOTAL MATERIAL COST / 417.00 / 487.00 / 558.00 / 558.00 / 558.00
Labour and wages / 25.00 / 30.00 / 36.00 / 36.00 / 36.00
Electricity Cost / 30.00 / 40.00 / 50.00 / 50.00 / 50.00
Chemical & other items Cost / 90.00 / 105.00 / 120.00 / 120.00 / 120.00
Depreciation / 57.55 / 49.35 / 42.40 / 36.95 / 31.30
Fuel cost(Coal) / 15.00 / 17.50 / 20.00 / 20.00 / 20.00
Water charges / 2.90 / 3.35 / 3.85 / 3.85 / 3.85
Total Cost Of Manufacturing / 637.45 / 732.20 / 830.25 / 824.80 / 819.15
Add:- Opening stock of Finished goods / 0.00 / 26.60 / 30.50 / 34.60 / 34.40
TOTAL / 637.45 / 758.80 / 860.75 / 859.40 / 853.55
Less: - Closing stock of Finished goods(15 Days Stock) / 26.60 / 30.50 / 34.60 / 34.40 / 34.10
MANUFACTURING COST OF GOODS SOLD / 610.85 / 728.30 / 826.15 / 825.00 / 819.45
(A) GROSS PROFIT / 3714.1 / 4321.70 / 4948.85 / 4950.00 / 4955.55
ADMINISTRATION EXPENSES
Salary / 39.00 / 47.00 / 56.00 / 56.00 / 56.00
Other administration charges / 150.00 / 165.00 / 180.00 / 180.00 / 180.00
TOTAL ADMINISTRATION EXPENSES / 189.00 / 212.00 / 236.00 / 236.00 / 236.00
FINANCIAL CHARGES
On Long/Medium term borrowings / 0.00 / 0.00 / 0.00 / 0.00 / 0.00
On Unsecured loans / borrowings / 0.00 / 0.00 / 0.00 / 0.00 / 0.00
On Working Capital borrowings / 0.00 / 0.00 / 0.00 / 0.00 / 0.00
TOTAL FINANCIAL CHARGES / 0.00 / 0.00 / 0.00 / 0.00 / 0.00
SELLING AND DISTRIBUTION OVERHEADS
Other Selling and distribution cost / 172.80 / 201.60 / 230.00 / 230.00 / 230.00
TOTAL SELLING AND DISTRIBUTION OVERHEADS (c ) / 172.80 / 201.60 / 230.00 / 230.00 / 230.00
(B) TOTAL COST OF SALES (a+b+c) / 361.80 / 413.60 / 466.00 / 466.00 / 466.00
NET PROFIT BEFORE TAX(A-B) / 3352.35 / 3908.10 / 4482.85 / 4484.00 / 4489.55
Tax on profit (33.99%) / 1139.45 / 1328.35 / 1523.70 / 1524.10 / 1526.00
(C) NET PROFIT AFTER TAX / 2212.90 / 2579.75 / 2959.15 / 2959.90 / 2963.55
(D) Total Sales of Production (Cu. Mtrs) / 90000 / 105000 / 120000 / 120000 / 120000
[13]Machinery Suppliers