PROJECT PROFILE ON M.S.

AND HIGH TENSILE NUTS AND BOLTS

NAME OF THE PROJECT

M.S. AND HIGH TENSILE NUTS AND BOLTS

PRODUCT CODE

343201011

QUALITY AND STANDARDS

IS 1363:1992 IS 1367:1994 IS 2389:1968 IS 4206:1987

PRODUCTION CAPACITY

Qty. : 360 M.T. (Per annum) Value : Rs. 252 Lakhs

PREPARED BY

Micro, Small & Medium Enterprises Harsiddh Chambers, 4th Floor Ashram Road Ahmedabad 380 014 Telephone Nos : 079-27543147 & 27544248 Fax : 079-27540619 E-mail : [email protected] Website : www.msmediahmedabad.gov.in

INTRODUCTION: An industrial fastener comprises a very wide range of items like nuts and bolts, washers, studs, nails etc. Nuts and bolts consist a major link in the family of industrial fasteners and are used by every industry. Bolt is a piece of metal rod, whose one end is unsettled and other end is threaded. Nut is the item, which rolls on these threads. Nut and bolts are available in various shapes, designs and sizes. Nuts and bolts are used for fastening purpose in industries where the replacement of pieces and the parts is necessary. There are many industries producing these nuts and bolts of various sizes, but the demand too is increasing as well as the raw material for the product is easily and indigenously available. The main raw material is mild steel wire coil/rod of required diameter. The composition of materials controls the quality of the bolts and nuts. composition for nuts and bolts raw material is given as under: Carbon Phosphorus Manganese Sulphur 0.22 to 0.23% 0.40% 0.39 to 0.60% 0.50% The recommended

Nuts and bolts are classified by two ways: i) Their uses, ii) Shape of head. In terms of use, nuts and bolts are of several types: Larger dia bolts, machine bolts, stand bolts, joint bolts, foundation bolts and nuts etc. in terms of shape, bolt and nuts are classified by head shape like hexagonal head, square head, round head, pan head, truss head etc.

MARKET POTENTIAL: The demand of nuts and bolts is influenced by the following factors: a) Transportation industries, aircraft, wagon, bicycles, automobile, body builders, etc. Railways,

b) c)

Electrical industries like manufacturing of transformer, electric motors, fans etc. Building activities such as construction of bridges, fabrication of various steel structures etc. Other heavy and light industries, steel and wooden furniture, machine tools, Agricultural machines and agricultural implements etc.

d)

As various types of MS and HT nuts and bolts are used in above sectors, the market demand is directly proportionate to the development of these industrial segments. BASIS AND PRESUMPTIONS: 1. Capacity Utilization 2. Time period of 1 year 3. Labour wages 4. Rate of interest 5. Margin Money 6. Operation period of project 7. Rental charges for land and building: IMPLEMENTATION SCHEDULE: Sl. No. 1 2 3 4 5 Activity Selection of site Preparation of project report Provisional Registration Financial arrangement Procurement of machinery Period Weeks 2 4 1 8 8 in : : : : : : 75% on single shift basis 300 days Estimated on the minimum wages 16% 25% varying from state to state 10 years 20,000 per month

6 7 8

Installation,electrification and commissioning of 6 machinery Selection and placement of staff 2 Procurement of raw materials, tools etc. 2

TECHNICAL ASPECTS: Process of Manufacture: The raw material used for manufacture of bolt is M.S. Rounds. As some of the rounds available are rusty and not perfectly round and straight, it is necessary to make them round. The rounds are pickled in the acid tanks, washed and drawn in a drawing machine. The cleaned rod is fed into the cold heading machine. In the machine, one end of the rod is cut into the desired length with cutting stroke and simultaneously the head formation takes at another end. For the HT bolts, forging is done on hot forging press. The pins are then trimmed in the trimming machine. In quality bolts, the lower side of the head is also faced. Threading is done in the thread rolling machines. While manufacturing nuts, the hexagonal rod of desired size is procured and the nuts are cut on the automatic nut-cutting machine. polishing barrel. Cutted nuts blanks are drilled and tapped on the nut-tapping machine. Finally, these are deburred in the

Process Flow Chart (M.S. Bolts) Mild steel rod Bolt cutting Head making Head trimming Thread rolling Polishing Store/dispatch Process Flow Chart (H.T. Bolts) Mild steel rod Wire drawing Bolt cutting Forging Trimming Threading Heat treatment (800oC 900oC) Tempering (400oC 500oC) Plating/Coating Store/despatch

Quality Control and Standards: The Bureau of Indian Standards has laid down the following quality standards for M.S. and High tensile fasteners such as Bolts and Nuts: IS 1363 : 1992 IS 1367 : 1994 IS 4206 : 1987 Production Capacity: Quantity Nuts and Bolts of various sizes - 360 MT Motive Power: Pollution Control: This industry involves pollution to some extent for which State Pollution Control Board has to be approached. Energy Conservation: The unit is equipped with electric powered machinery. The energy conservation efforts need in unit is the creation of awareness among the workers. FINANCIAL ASPECTS: A. Fixed Capital Land and Building Covered area 1600 Sq. mtrs. Machinery and Equipment (per month) Sl. No. 1 Description Double stroke solid die cold head Forging machine suitable for bolt Dia 6 mm to 18 mm and length 20 mm to 150 mm, with 15 HP Electric motor Head trimming machine upto 18 mm dia bolt x 150 mm length With 10 HP electric motor 6 Qty. 1 No. Total (in Rs.) 8,40,000/(Rs.) 20,000/Value (In Rs.) 2,52,00,000/85 HP

1 No.

5,64,000/-

Sl. No. 3

Description Thread rolling machine suitable for upto 18 mm dia bolt x length 150 mm with 15 HP electric motor Bull block wire drawing machine Wire pointing machine with 1 HP motor Steel polishing barrel with electric motor Automatic nut forming plant, five Station capacity 18mm dia with 25 HP motor, lubricant and coolant pump Nut tapping machine with 3 HP Motor and starter Semi muffle oil fired furnace Tempering furnace H.T. air circulated type electrically heated temp. upto 500oC 3 KW rating Die, tools gauge and measuring Instruments Electrification and installation @ 10% Office equipment and furniture

Qty. 1 No.

Total (in Rs.) 5,04,000/-

4 5 6 7

1 No. 1 No. 1 No. 4 Nos.

1,20,000/18,000/54,000/15,00,000/-

8. 9. 10.

4 Nos. 1 No. 1 No.

2,64,000/1,86,000/90,000/-

11.

L.S.

1,80,000/4,14,000/30,000/--------------47,64,000/---------------

Total : B. Working Capital (Per Month) (i) Sl. No. Description Personnel Qty. Salary

Total (in Rs.) 9,000/5,000/30,000/8,000/10,500/3,000/---------65,500/6,500/---------72,000/-

Manager Office Assistant/Clerk Skilled Worker Semi-skilled Worker Un-skilled Worker Watchman-cum-Peon

1 1 6 2 3 1

9,000/5,000/5,000/4,000/3,500/3,000/Total : :

Perquisites @ 10% Total 7

(ii) Sl. No. 1. 2. 3. Particulars

Raw Material (Indigenous) Qty. 19.25 MT 10.75 MT L.S. Total : Amount (in Rs.) 8,47,000/4,83,750/5,000/-----------13,35,750/======= (In Rs.) 30,000/2,70,000/3,000/------------3,03,000/======== (In Rs.) 20,000/3,000/4,000/5,000/2,000/1,000/2,000/---------37,000/======

M.S. Wire/Rod 6 mm 18 mm dia @ Rs. 44,000/MT Hexagonal M.S. rod 6 mm - 18mm dia @ Rs. 45,000 per MT Packing/Polishing materials and Consumables

Utilities Electricity and Water Furnace oil, 3,000 ltrs. @ Rs. 90 per litr. Lubricant oil etc. Total Other Contingent Expenses Rent Maintenance and repair Postage, stationery and phone Packing and transport Travelling and conveyance Insurance Miscellaneous expenses Total (iii) (i + ii + iii + iv) : :

Total Recurring Expenditure = Rs. 72,000 + 13,35,750 + 3,03,000 + 37,000 = Rs. 17,47,750/-

(vi)

Total Working Capital for 3 months - Rs. 52,43,250/-

C. Total Capital Investment (i) Fixed Capital (ii) Working Capital (for 3 months) Total : Rs. 47,64,000/Rs. 52,43,250/------------------Rs. 1,00,07,250/=========== 8

FINANCIAL ANALYSIS (1) Cost of Production (per annum) Total recurring cost Depreciation on machines and equipment @ 10% Depreciation on office and equipment @ 20% Interest on total Capital Investment @ 16% Total (2) Total Sales (Per Annum) 1. By sale of MS bolts @ Rs. 65 per kg. 2. By sale of MS nuts @ Rs. 65 per kg. 3. By sale of HT bolts @ Rs. 75 per kg. 4. By sale of HT nuts @ Rs. 75 per kg. 120 MT 60 MT 115 MT 65 MT Total: (3) Profit (per year) Rs. 2,52,00,000 2,30,53,560 = Rs. 21,46,440/(4) Net Profit Ratio on Sale = Net Profit x 100 Turnover = 2146440 x100 25200000 (5) Rate of Return = Net Profit x 100 Total investment = 2146440 x 100 10007250 = 21% = 8.5% : (In Rs.) 2,09,73,000/4,73,400/6,000/16,01,160/---------------2,30,53,560/========= (In Rs.) 78,00,000/39,00,000/86,25,000/48,75,000/---------------2,52,00,000/=========

(6) Break-even Point Fixed Cost (Per annum) Rent Depreciation on machinery and equipment Depreciation on office equipment Interest on total investment 40% of salary and wages 40% of other expenses, exc. rent Total : (In Rs.) 2,40,000/4,73,400/6,000/16,01,160/3,45,600/81,600/--------------27,47,760/=========

B.E.P.

= 2747760 x 100 2747760 + 2146440 = 56%

10

Addresses of Machinery and Equipment Suppliers: 1. M/s. Sohal Engineering Corporation 61, Ganesh Chandra Avenue Kolkata 700 013. 2. M/s. Perfect Machine Tools Co. Pvt. Ltd. Bell Building Sir P.M. Road, Fort Mumbai M/s. Manek Lal and Sons 23, Ganesh Chandra Avenue Kolkata 700 013. M/s. Industrial Machine Corporation F-36-C, Sainik Market Main Road, Ranchi. M/s. S.S. Sabarwal and Sons 664, Military Road Anand Parbat Indl. Area New Delhi-110 005. M/s. Kalihar Machine Tools Plot No. 18696/1, K.M. Singh St. No. 7 Ludhiana. M/s. H. Mann Industries Ram Tirath Road Amritsar - 143 001.

3.

4.

5.

6.

7.

Addresses of Raw Material Suppliers: 1. M/s. Usha Martin Industries Tatisilwai, Ranchi. M/s. M.V. Wires Pvt. Ltd. Poddar Estate, Mahilong Ranchi. Local Market.

2.

3.

11