PROJECT PROPILE ON

ALUMINIUM PRESSURE DIECASTING (UPTO 0.75KG)

PRODUCT CODE : 335404006

QUALITY AND : This Profile envisages the manufacture of pressure die

STANDARDS cast components of Aluminium for engineering use
required for automotives, defence and aeronautic
space applications. The quality of the component is
supposed to be good near net shape with high
production, resulting into, low cost and conforming
to standard specifications as laid down by Bureau of
Indian Standard IS11804:1986 code of Practice for
Manufacture of Aluminium Alloy Pressure Die
Castings.

MONTH AND YEAR OF : MARCH-2021

PREPARATION

PREPARED BY : Branch MSME Development Institutes,

386, Patel Road, Ram Nagar,
Coimbatore – 641 009
 PROJECT PROPILE ON
ALUMINIUM PRESSURE DIECASTING (UPTO 0.75KG)
INTRODUCTION

Though tremendous technological advancements in the metalcasting

industry have taken place in recent years, the foundry industry faces
increasing demands to achieve higher productivity at minimum cost, even
while producing high quality cast components of intricate shapes. By
proper selection of a casting technique with careful foundry and metallurgical
controls, castings of high quality are being commercially manufactured.
Amongst a large number of foundry techniques one is low and high pressure die-
casting. It has been developed and industrially employed to produce castings
of near-net shape components. The near net shape cast parts are famous for their
fine details, good surface conditions, complex shapes and economy. Under
the present scenario of industrial development, metal casting has moved from an art
and craft industry to the industry based on science and technology. The
pressure die casting manufacturing processes have been systematically developed
so that structure may be controlled and quality may be assured. Diecasting provides
the foundry man with one of the fastest means of producing castings with a much
higher degree of accuracy than that normally obtained by conventional sand
casting. Infact, this method isunexcelled for mass production work as numerous
castings can be produced very rapidly at lowcost. The castings can be made to
very close tolerances and with a fine surface finish.

Pressure die casting in aluminium alloy offers means for very rapid
production of engineering and other related components even or intricate
design. The technique has obvious advantages when a component is
required in large quantities. However, for engineering components such as those
required for aeronautic space, Defence and automotive applications, mechanical
properties and durability are of primary importance. It is there for essential that
the best features of design should be employed and optimum casting
technique with minimum cost be adopted. Pressure die cast products are used
in the form of components of various electrical, electronic, mechanical
instruments and appliances used in domestic as well as industrial fields.

MARKET POTENTIAL

The popularity of pressure die cast aluminium alloy components arises from
the following advantages It offers as compared to the methods of castings:
  HighProductivity
 Good as cast surface finish and appearance.
 Compact casting–soundstrength.
 Do not require furthermachining.
 Canbecastwithinclosedimensional tolerance.
 Very thin section, can be cast with ease.
 Metalwastageinthecastingislow.
 Rejection due to casting defects is low.

Demand mainly arises from the sources like Defence, Telephone industry,
Automobile components and fittings, Electrical appliances, Electroniccomponents,
Builders hardware and fittings etc. Demandin these areasagain depends upon the
primary market, replacement market and substitution market.

The Primary Market is expected to continue as the leading market and, with
the trend of demand growth, to cater to the requirement of more and more new
industries coming up in the above areas of consumption. The replacement
market is also likely to expand with more market ability of new products.

There are very few units in the small scale sector producing pressure die
cast components. Hence there is good scope for setting up this industry.

BASIS ANDPRESUMPTIONS

1. The Scheme has been prepared on the basis of 75% efficiency on single
shift basis of 8 hours’ duration considering 25working days in a month
and a total of 300 working days in ayear.
2. The rate of interest in the scheme has been worked out on the basis of 15%
upon an average. However, this figure is likely to vary depending upon
the financial outlay of the project as well as location of theunit.
3. The break–even point in the scheme has been calculated on the 80%
capacity utilization basis.
4. The cost of machinery and equipment as indicated are approximate
which are ruling locally at the time of preparation of the scheme. When a
tailor cut project is prepared, necessary changes are to be made.
5. The rates quoted in respect of salaries and wages for workers and others
are the minimum rates in the state/neighboring states.
6. Margin money required is minimum 30% of Projected investment
i.e Rs. 16.75 lakhs. However, it may differ from Project to Project
and type of entrepreneurs such as Women, SC/ST, Physically Handicapped
etc.
7. Payback period of the Project: After the initial gestation period of one and
 hall year sit will require approximately 5 years to pay back the loans.
8. Profile life is estimated to be 10 years. The project should be reviewed
every 3 to 4 years for modernization of the plant and machinery,
technology etc. so that its life is prolonged.

IMPLEMENTATION SCHEDULE

SI. Activity Approx. Cumulative

No. Time Time
1. Preparation of ProjectReport 6weeks 6weeks
2. Udyam Registration 2weeks 8weeks
3. FinancialArrangement 12weeks 20weeks
4. a) Construction/ Renovation of factory 20weeks 40weeks
Shed/ Building
b) Purchase and Procurement of Machinery
and Equipments
5. a) Installation of Machinery and 4months 14 months
Equipments
b) Electrification
c) Staff Recruitment
6. N.O.C from Pollution Control Board 2weeks 14months
and 2 weeks
7. Arrangement of Utilities 6weeks 1 year and
4 months
8. Procurement of Raw Materials 1month 1 year and
5months
9. Commissioning, Trial Runs and Commercial 1month 1½years
Production

TECHNICAL ASPECTS

Process of Manufacture

Because of its high melting point, aluminum silicon alloy is die castingcold
chamber pressure die casting machine. Inpressure die castingthe moltenmetal is
introduced under pressure into a metallic die and allowed to solidify to produce
near-net-shapes. Two types of die casting machines known as cold chamber and
hot chamber are usually used. The production rate depends on casting thickness,
specified properties of the cast metal and the complexity of the cast shape. This
technique produces castings of very good surface finish with high dimensional
accuracy. The process provides high yield due to absence of riser and feeding
system. Production rate is high and the casting generates
moremetallurgicalintegrity.Finer grainsand absence of porosity make the
casting mechanically compact.Casting size, weight, design and melting point of
cast metal limit the use of the process.Cost of die confines the process only to
relatively small parts.
The cold chamber machine is used for the alloy which has higher melting
point than the zinc-alloy. Higher pressure is applied, solower molten metal feeding
temperature is used casting traps lesseramount of air as compared to the air
trapped in hot chamber machine. In pressure die casting, die temperature,
molten metal pouring temperature, injection pressure and speed are optimised
for a special casting.
Metal for a single shot is loaded into a cylindrical chamber through
apouring aperture. Apiston then forces the metal into the die, the entire operation
being completed in a few seconds, so that iron contamination is virtually
eliminated. Using this technique much higher
injectionpressureintherangeof70–140 Mpais feasible, enabling lower metal to
be employed and greater intricacy achieved. The castings are less prone to
entrapped air and a higher standard of soundness ensures from the smaller amount
of liquid and solidification shrink age occurring withinthe die.
In cold chamber operations the molten metals is usually maintained at
constant temperature in an adjacent holding furnace, where transfer of
successive shots to the machine chambers can be accomplished
manually. Holding furnaces may be electrically heated types or the one using
immersion heating types or the one using immersion heating device, which has
a close control over the molten metal.
The molten metal should be thoroughly degased by chlorine gas or
hexachloroethane followed by modification with suitable modifier. For thinner
sections the working temperature of the molten metal should be 680O C to 690O C
and for thicker sections this should be between 650O C to680OC.
The die temperature should be maintained so that castings of good quality are
produced. The die cast components are subjected to fettling operation for
removal of getting system and fins, if any.

Quality Control and Standards

Alloys suitable for pressure die casting and their chemical composition are
given below. Alloys 4420 or LM-24M, 4520orLM-2M, 4600 or LM-20 Mare
widely used alloys for general engineering work and are suitable for Pressure die-
casting. These alloys have excellent fluidity good corrosion resistance,
medium strength and can be cast in intricate shapes. The die cast component
should be free from blowholes and Pinholes porosity, shrinkage, cold shut etc.
They should be free from dimensional inaccuracies. No patching or welding shall
be allowed to cancel or rectify any defects
Chemical Compositions -% of

Grade Cu Si Mg Fe Mn Ni Zn Pb Sn Ti Al
4420 or 3.0– 7.5– 0.3 1.3 0.5 0.5 3.0 0.3 0.2 0.2 Balance
LM-24M 4.0 9.5 remainder
4520 or 0.7– 9.0– 0.3 1.0 0.5 0.5 0.5 0.3 0.2 0.2 Balance
LM-2 M 2.5 11.5 remainder
4600 or 0.4 10.0- 0.2 1.0 -- 0.1 0.2 0.1 0.1 0.2 Balance
LM-20M 13.0 remainder

Production Capacity

Estimated production capacity - 10 MT per month.

The capacity utilization will be 90% Quantity (perannum): 108MT
Value: Rs. 2,,43,00,000 (243Lakhs)
Motive Power (per month)

Total motive power requirement = 4500 kW

Pollution Control

The industry does not create extensive pollution hazard. The

workshop should be well ventilated, properly lighted and fitted with exhaust
fans.

EnergyConservation

There is little scope for energy conservation in this industry except in the
melting practice where the furnace should be properly insulated to reduce
radiation loss and should be fitted with automatic pyrometric control to maintain
the furnace at the proper temperature.

FINANCIAL ASPECTS

Fixed Capital (per month)

i) Land and Building Rent (Rs.)

Land and Built up area including workshop, office, store etc. 30,000
Total covered area 300 sq. metres @ Rs. 100/-per sq. mtr. on
rent with sufficient open space for storing of raw materials and
creating greenaries for pollution abatement.
ii) Machinery and Equipments

(a) Production Unit

SI. Description Qty (No.) Amount (Rs.)

No.
1. Horizontal cold chamber pressure diecasting 1 15,60,000
machine with control panel of 60T capacity
with 7.5 HP motor
2. Electrical resistance furnace kg capacity 1 1,20,000
3. Centre lathe 900mm Heavy duty with 3 HP 1 50,000
motor and accessories
4. Shaping machine 600mm stroke with 3HP 1 60,000
motor and accessories
(Cone Pulley drive, all geared)
5. Pillar Drilling machine complete with 1 HP motor 1 84,000
6. Bench Grinder double ended with 1HPmotor 1 24,000
7. PedestalGrinderwith2HPmotor 1 36,000
8. Trimming machine(bell Press) @ Rs. 12,000 each 3 36,000
9. Weighing Machine 1 40,000
10 Hand Tools and Fixture 50,000
11. Vice, tables, fixtures, measuring instruments, L.S. 2,00,000
gauges etc. Testing Equipments Laboratory
comprising chemical testing and physical
testing
b)Diesel Generation set 125 KW Cap. With 1 1,50,000
standard accessories
c) Electrification and above cost 2,41,000@ 10% of
Total 26,51,000
d)Cost of moulds L.S. 2,00,000
e) Office Equipment, Furniture, typewriter, fan L.S. 1,00,000
etc.,
Pre- operative Expenses-Like legal expenses, 50,000
establishment cost, travelling, start-up expenses,
consultancy fees, estimate fee, ,interest during
construction trial run expenses etc..
Total 30,01,000
Say 30,00,000
Working Capital (per month)

i) Personnel No. Salary (Rs.)

1. Works Manager 1 25,000
2. Sales Executive 1 20,000
3. Supervisor 1 12,000
4. Chemist 1 12,000
5. Store Keeper-cum Accountant 1 12,000
6. Steno-Typist 1 10,000
7. Maintenance Fitter 1 10,000
8. Skilled Worker @ Rs. 10,000 3 30,000
9. Semiskilled Workers @ Rs.8000 3 24,000
10. Unskilled Workers @ Rs.6,000 4 24,000
11. Peon/Watchman @ Rs. 6,000 2 12,000
Total 1,91,000
Staff welfare @ Rs.15% 28,650
Total 2,19,650
Say 2,20,000

(ii) Raw Material Requirements (per month) (Rs.)

Aluminium alloy ingot 10 MT @ Rs. 140 per kg 1400000

SI. Utilities and Other Contingent Expenses (per (Rs.)

No. month)
1. Rent 25,000
2. Electric Power(4500 KWH) @ Rs7.00Per KWH 31,500
3. Water 1,000
4. Postage and Stationery 3,000
5. Repair, Maintenance andReplacement 20,000
6. Consumable Stores like Fluxes, Degasser, 1,00,000
Lubricants dies etc.
7. Transport Expenses 10,000
8. Misc. Expenses 10,000
9. Advertisement and Publicity 5,000
10 Insurance 5,000
Total 2,10 ,500
Say 2,11,000
 SI. Total Recurring Expenses (Rs.)
No.
1. Raw Materials 14,00,000
2. Salaries and Wages 2,20,000
3. Other Expenses 2,11,000
Total 18,31,000

C. Total Capital Investment

1. Machinery and Equipments and 30,00,000 30,00,000

2. Working capital for 3 months 54,93,000

Total 84,93,000

FINANCIAL ANALYSIS

1) Cost of Production (per annum) (Rs.)

1. Raw Materials 1,68,00,000
2. Staff and Labour 26,40,000
3. Other Expenses 25,32,000
4. Depreciation on furnace @ 20% 24,000
5. Depreciation on Machinery 2,24,000
6. Depreciation on office Equipment @ 20% 20,000
7. Depreciation on moulds and Tools @ 25% 62,500
8. Interest on total Capital 10,19,160
Total 2,33,21,660
Say 2,33,22,000

(2) Turnover (per annum) (Rs.)

108 MT Aluminium alloy Pressure 2,43,00,000

Die-cast components @Rs 2 ,25,000 per MT
Aluminium alloy scrap10 Tons 6,00,000
@ 60,000 per MT
Total 2,49,00,000

3) Net Profit (peryear)

= Sales – Production Cost

= 2,49,00,000 – 2,33,22,000
= Rs.15,78,000
4) Net Profit Ratio(onSale)

= Net Profit × 100

Turnover per year

= 15,78,000 × 100
2,49,00,000
= 6.34%

5) Rate of Return

= Net Profit per year × 100

Total Investment

= 15,78,000 × 100
84,93,000

= 18.58%

(6) Break-even Point

Fixed Cost (per annum) (Rs.)

a Rent ( Annual) 3,00,000
b.. 40% of Salary and Wages 10,56,000
c. 40% of Other Expenses 8,68,800
d. Dep. on Furnace and 24,000
e. Dep. on Machinery and Equipments 2,44,000
f. Interest on Total Capital 10,19,160
g. Depreciation on Office Equipments 62,500

h. Insurance 60,000
Total 36,34,460
Say 36,35,000

B.E.P. = Fixed Cost × 100

Fixed Cost + Profit

= 36,35,000 × 100
36,35,000 + 15,78,000

= 36,35,000
52,13,000

= 69.7%
ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

1. SS Engineering Works, AshcharyaKanna, Plot no. 100, sector-6, IMT Manesar,

Gurugram, Haryana-122050, [email protected] Mob. No.8287908726,
9810078209
2. M/s. HMT Ltd. 31, Chowringhee Road, Kolkata—700071
3. M/s. Indo Japanese Proto Type Training Centre, Baltikuri, Dasnagar, Howrah,
Kolkata.
4. M/s. Hindustan Machine Tools, Jeevan Tara Building, Parliament Street,
New Delhi-110001
5. M/s. Wesman Engineering Co.(P) Ltd. B-99, Mayapuri Indl. Area, New Delhi
6. M/s. Batliboy and Co. Ltd. Jeevan Vihar, Parliament Street, NewDelhi-
110001
7. M/s.Perfect Machine Tools, 44E, Connaught Circus, NewDelhi-1.
8. M/s. Pioneer Equipment Co. (P) Ltd., 36/8 Nizammudin West, New Delhi.

ADDRESSES OF RAW MATERIAL SUPPLIERS

1. M/s. Hindustan Aluminium CO. United Commercial Bank Building, Parliament Street,
New Delhi-110001
2. M/s. Indian Aluminium Bank Building, Parliament Street, New Delhi-110001
3. Local Market .