MONOLITHIC REFRACTORIES

PRODUCT CODE

: 23911 (NIC Code)

QUALITY AND STANDARDS

: IS: 10047 1981 & IS: 10570 - 2011

PRODUCTION CAPACITY
Value

: 1,500 MT (Per Annum)

: Rs. 1,82,50,000/-

MONTH AND YEAR

OF PREPARATION

: June, 2014

PREPARED BY

: Sh. Ambrose Royson

Assistant Director (Glass & Ceramic)

1. INTRODUCTION
Refractory materials are chemically and physically stable at high
temperatures. Monolithic refractories (Refractory Castables) are unformed/
unshaped refractories and are only given shape upon application. These are
materials which consist of precision graded coarse and fine refractory grains. They
are gelled by means of a binder system in the materials green state. Following the
heat-up of the material the binder either transforms or volatilizes facilitating the
formation of a ceramic bond. The most common binder used in castables is high
alumina cement. Other binders that are often used include hydratable alumina and
colloidal silica. The cement-containing castables are often classified by the amount of
cement they contain. Conventional castables can contain around 15-30% cement
binder. Low cement castables contain between about 3-10% weight cement. Ultra
low cement castables contain less than 3% cement component.

2. MARKET POTENTIAL
Monolithic refractories have increased in market share of the total refractories
industry over the last two decades and will continue to do so. The main drivers for
this have been economic considerations (rapid installation time reducing the down
time of a given application, cost of raw materials for their manufacture, less
manpower required in their installation), and the availability of skilled people
within the industry. Monolithic refractories have a countless of industrial
applications throughout the steel, cement, non-ferrous metallurgical, waste disposal
and petrochemical industries. Thus, Monolithic Refractories is having very good
scope in the market.

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Monolithic Refractories

3. BASIS AND PRESUMPTIONS

i.

It is presumed that the unit will run single shift per day and 300 days in a
year.

ii.

The rate of interest has been taken 14% on an average both for fixed
investment and working capital.

iii.

To achieve full production 1 to 2 months trial production required.

iv.

The salaries and wages, cost of raw material, utilities, rent of the shed etc. are
based on prevailing rates in and around local region at the time of
preparation and are subject to necessary changes from time to time based on
local conditions.

v.

The project preparation cost and non-refundable deposits may be considered

under the head of pre-operative expenses.

vi.

Economy of the scheme is worked out assuming the product mix as:
a. High Alumina Monolithics (Al2O3 > 70%)

: 500 MT (Per Annum)

b. Medium Alumina Monolithics (Al2O3 55 - 70%)

: 500 MT (Per Annum)

c. Low Alumina Monolithics (Al2O3 40 - 55%)

: 500 MT (Per Annum)

4. IMPLEMENTATION SCHEDULE
The approximate time required for various activities is given below.
However, it may vary from place to place depending upon the local circumstances
and enthusiasm of the entrepreneur:
S. No.

Period
(in Months)

Activity

1.

Scheme Preparation and Approval

0 - 1st Month

2.

Provisional Registration (EM Part I) & Preparation

of Project Report

1st - 2nd Month

3.

Sanction of loan

2nd - 5th Month

4.

Clearance from State Pollution Control Board

3th - 4th Month

5.

Placement of order for machinery and delivery

4th - 5th Month

6.

Installation of machines

6th - 7th Month

7.

Power connection

6th - 7th Month

8.

Trial Run

7th - 8th Month

9.

Commercial Production

9th Month onwards

Due to overlapping of some activities, normally 6-9 months are required to

implement the project.

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Glass & Ceramic Division

5. TECHNICAL ASPECTS
5.1. Process of Manufacturing
Raw materials in fine powder form are weighed based on the percentage of
alumina & cement requirement of specific customer. The weighed raw material
batch is transferred to Forberg mixer and mixed for 3 to 5 minutes. The mixed
material is unloaded via vibrating screen to avoid agglomeration. The monolithic
refractory powders are then packed in bags of 20, 25, 50 or 100 kgs each as per
customer requirement. The bags have to be stored in well air ventilated dry place to
avoid any lump formation by moisture.

5.2. Quality Control and Standards

Quality of the Monolithic Refractory products has to be ensured as per
IS: 10047 - 1981 & IS: 10570 1979.

5.3. Production Capacity

This scheme envisages manufacturing of 1,500 MT of Alumina Castables per
annum assuming the product mix as:
a. High Alumina Monolithics (Al2O3 > 70%)

: 500 MT (Per Annum)

b. Medium Alumina Monolithics (Al2O3 55 - 70%)

: 500 MT (Per Annum)

c. Low Alumina Monolithics (Al2O3 40 - 55%)

: 500 MT (Per Annum)

5.4. Pollution Control

This manufacturing process does not attract pollution control measure.
However, it is advised to consult State Pollution Control Board and follow the
guidelines offered by them.

5.5. Energy Conservation

Suitable measures should be used for the appropriate use of electricity.

5.6. Motive Power

17.5 HP

5.7. Machinery Utilisation

The capacity utilization is considered to be 80% of the total installed capacity.

6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building: Covered area for workshop, office, stores etc. 3,000 sq. ft. on
rent.

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Monolithic Refractories

6.1.1. Machinery and Equipments

Rate
(Rs.)

Nos.

9,00,000

9,00,000

Vibrating screen
20 diameter, 1 HP motor and
accessories

50,000

50,000

Container Elevator
1 HP motor

30,000

30,000

Weighing Scale
Platform 25 x 25
Capacity 300 kg

27,000

27,000

Weighing Scale
Platform 12X12
Capacity 10 kg

7,500

7,500

1,20,000

1,20,000

80,000

80,000

1,50,000

1,50,000

Lab Magnetic Separator

10,000

10,000

Lab Weighing Scale

Capacity 3 kg

5,000

5,000

Lab drier
10 X10 X10 of heating
chamber

50,000

50,000

2,50,000

2,50,000

L.S

1,00,000

Description
Forberg mixer
Capacity 1 ton
6HP electric motor

Laboratory Equipments:
Abrasive Resistance machine
Hand Operated Pressing Machine
CCS Testing Machine

Lab furnace
10X10X10 of heating chamber
Max operating temp. 14000C
Chemical Analysis Equipment

Total Price
(Rs.)

Total

17,79,500

Electrification and installation @ 10%

Rs. 1,77,950

Office equipments and furnitures (L.S.)

Rs. 50,000

Cost of auxiliary items (Trolley, Stitching M/c, etc.)

Rs. 50,000

Pre-operative expenses

Rs. 50,000

Total Fixed Capital Requirement

Rs. 21,07,450/-

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Glass & Ceramic Division

6.2. Working Capital (per month)

6.2.1. Land & Building
Building (on rent)

(Rs.)

Covered area for workshop, office, stores etc. 3000 sq. feet

30,000

6.2.2. Personnel
Description

Nos.

Salary/month (Rs.)

Total (Rs.)

Works Manager cum

Marketing Manager

20,000

20,000

Application Engineer
(Ceramist)

12,000

12,000

Accountant/Cashier

10,000

10,000

Supervisor (Chemist)

12,000

12,000

Skilled Workers

10,000

10,000

Semi-skilled Workers

9,000

18,000

Un-skilled Workers/Helpers

7,000

28,000

Peon cum Watchman

7,000

7,000
Total

1,17,000

Perquisites @ 10%

11,700

Total

1,28,700

6.2.3. Raw Material

Description

Quantity (MT)

Rate (Rs./MT)

Calcined Bauxite (Al2O3 80%)

25,000

25,000

Calcined Bauxite (Al2O3 70%)

1.5

18,000

27,000

Calcined Bauxite (Al2O3 60%)

13,000

65,000

Calcined Bauxite (Al2O3 50%)

11

8,000

88,000

Portland Cement

13

6,000

78,000

Cement (40% Al2O3)

11,500

103,500

Cement (60% Al2O3)

18,000

54,000

White Tabular Alumina

45,000

1,35,000

Pyrophyllite (Al2O3:45 - 50%)

58

4,200

2,43,600

12.5

10,500

1,31,250

2,500

22,500

Microsil
Plastic clay

Packing Material @ Rs. 200 per MT of Product

25,000
Total

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Total (Rs.)

9,97,850

Monolithic Refractories

6.2.4. Utilities
Power: 3,580 units @ Rs. 7/- per unit

Rs. 25,060

6.2.5. Other Contingent Expenses

S. No.

Description

Value (Rs.)

Postage & Stationary

1,000

Consumable Store

1,000

Repairs & Maintenance

1,000

Advertisement & Publicity

3,000

Transportation

2,000

Telephone/ Mobile

1,000

Miscellaneous Expenses

2,000

Total

11,000

6.2.6. Total Recurring Expenditure (per month)

S. No.

Description

Value (Rs.)

Building Rent

30,000

Salaries

1,28,700

Raw materials

9,97,850

Utilities

25,060

Other contingent expenses

11,000

Total

11,92,610/-

6.3. Total Capital Investment

Total Fixed Capital

Rs. 21,07,450

Total Recurring Expenditure (for 3 months)

Rs. 35,77,830

Total

Rs. 56,85,280/-

7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
S.No.

Description

Amount (Rs.)

Total Recurring Cost per year

1,43,11,320

Depreciation on Machinery & Equipment @ 10%

1,77,950

Depreciation on tools and fixtures @ 20%

10,000

Depreciation on furniture and office equipments @ 20%

10,000

Interest on Total Capital Investment @ 14%

7,95,939

Total

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1,53,05,209/-

Glass & Ceramic Division

7.2. Turnover (per annum)

S. No.

Item

Qty. (MT)

Rate (Rs. /MT)

Value (Rs.)

Low Alumina Castable

500

7,500

37,50,000

Medium Alumina Castable

500

11,000

55,00,000

High Alumina Castable

500

18,000

90,00,000

Total
7.3. Net Profit (per annum)
=

Turnover Cost of Production

Rs. 1,82,50,000 1,53,05,209

Rs. 29,44,791/-

7.4. Net Profit Ratio

=

Net profit per year

X 100
Turnover per year

29,44,791
X 100
1,82,50,000

= 16.1 %

7.5. Rate of Return

=

Net profit per year

X 100
Total Capital Investment

29,44,791 X 100
56,85,280

= 51.8 %

7.6. Break-even Point

Fixed Cost

(Rs.)

Rent

3,60,000

Total Depreciation

1,97,950

Total Interest

7,95,939

40% of salary and wages

6,17,760

40% of other Contingent expenses

52,800

Total

20,24,449

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1,82,50,000/-

Monolithic Refractories

B.E.P
=

Fixed Cost
X 100
Fixed Cost + Net Profit

20,24,449
X 100
20,24,449 + 29,44,791

= 40.7 %

Addresses of Machinery Suppliers

Raw Material Suppliers

1.

M/s. MixSep
No. 104, AB Government
Industrial Area, Charkop,
Kandivali West, Mumbai

1.

M/s. Monarch International

217 B, 1st Floor,
Okhla Industrial Estate, Phase 3,
New Delhi- 110020

2.

M/s. Thermal Engineering

Corporation, E - 168, Kavi
Nagar, Industrial Area,
Ghaziabad - 201002

2.

M/s. KERNEOS India

3B- Shrisiti Bldg., 3rd Floor,
12, Ho Chi Minh Sarani,
Kolkata - 71

3.

M/s. Micro-Weigh Engineers &

Technologies
Bajrhi Industrial Area,
Faridabad - 121004

3.

M/s. Meenakshi India Exports

D-7/226. Chattarpur Hills,
Dhan Mill Road,
Delhi- 110074

4.

M/s. Sweta Engineers &

Consultancy,
Gurukul Indraprastha Industrial
Area, Anangpur Road,
Faridabad

4.

M/s. Buntrock Industries

Incorporation,
D-201, Nagarjuna Apartment,
Mayurkunj, Mayur Vihar,
New Delhi- 110096

5.

M/s. S.V. Traders

D-48, Saraswati Garden, Ramesh
Nagar, New Delhi- 110015

5.

M/s. Sahu Silicones & Chemicals

A - 94/7, Wazirpur Industrial
Area, New Delhi- 110052,

6.

M/s. Star Material Handling

Projects, No. 1375, 3rd Floor
Pocket, GH 1, Sector No. 28,
Rohini, Delhi - 110086

6.

M/s. Mahavir Chemical

Industries, 16/3, W. E. A., Abdul
Aziz Road, Karol Bagh,
Delhi- 110005

7.

M/s. Karamson Engineering

Corporation
No. 3/24, Kirti Nagar, Industrial
Area, New Delhi - 110015

8.

M/s. A.S.I. Sales Private Limited

M - 8, Shivam House, B - 2,
Karampura Complex
New Delhi - 110015

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