PROJECT PROFILE

PRODUCT:

RIGID P.V.C. PIPES (INSULATED)

NIC CODE :

25201

ASICC CODE :

42922

PRODUCTION
CAPACITY ( P.A.) :

Rs. 5,37,60,000/-

MONTH AND YEAR

OF PREPARATION :

APRIL - 2011

PREPARED BY:

CHEMICAL DIVISION
SRI S.K. SAHU, ASST. DIRECTOR (CHEM.)
MSME DEVELOPMENT INSTITUTE
GOVT. OF INDIA, MINISTRY OF MSME
VIKAS SADAN, COLLEGE SQUARE
CUTTACK-753003 ORISSA
TEL. 0671 - 2548049, 2548077 FAX: 0671-2332307

INTRODUCTION:
Rigid PVC Pipes are fast replacing the conventional metal pipes in many
applications. Use of PVC pipes as electrical conduits is well accepted in
household and industrial activities. PVC conduits have been accepted by all
Electricity Boards. PVC pipes of different diameters have gained wider
acceptance for water supply. Their light weight, low cost, easy installation, noncorrosiveness, high tensile strength to withstand high fluid pressure make them
ideal for number of purposes. They also offer resistance to most of the
chemicals and have excellent electrical and heat insulation properties.
PLANT CAPACITY PER ANNUM : 960 MT.

MARKET & DEMAND ASPECTS :

In view of the priorities to rural water suppliers, irrigation facilities in the
national planning and rapid rural electrification, the demand for rigid PVC pipe
is growing regularly. 60% of the total demand of PVC pipe exist today is upto
110 mm outer diameter which is very much suitable for small scale sector
industries.
In the state like Orissa where 80% of total population lives in rural belt,
irrigation, portable water supply, electrification always occupy in the forefront
of planning. About six to seven small units are manufacturing PVC pipes in the
state, but still there exist a very good scope of new units to meet the demand of
internal and external market.
RAW MATERIALS :
S.no.
1.
2.
3.
4.
5.
6.

Item
PVC Resin
D.O.P.
Stabilizers
Lubricants
Colours
Fillers

Qty
58,000
2200
1200
600
200
3800

MANUFACTURING PROCESS :
A)
S.no.
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)

B)

PVC COMPOUND FORMULATION:

Item
PVC Resin
Stabilizer (Non toxic)
Primary Plasticizer
Secondary Plasticizer
Internal Lubricant
External Lubricant
Epoxy Plasticizer
Pigment base
Pigment

Parts by wt.
100
5
1.5
5
3
4
1.5
3
As required

PROCESSING:

The basic material which on Polymerisation produces P.V.C. Pipes is Poly

vinyl chloride which in resin form is hard and rigid. The rigidity can be
controlled by controlling the percentage of plasticizer at the time of
compounding. Production of Rigid PVC pipe is based on plasticizing and
homogenizing PVC compound and then passing the compound through an
extruder. The hot molten PVC compound is extruded through a circular slit.
Circular slit governs the size of pipe to be extruded. Different dies are used for
manufacturing different size of pipes.
The Pipes thus extruded through the die is then passed through a vacuum
sizing tank wherein the dimensions of the pipe can be accurately set. It also
helps in surface finish of the pipes. Vacuum sizing reduces the percentage of
wastage considerably.
As the pipe being extruded is rigid in form they cannot be wound into
coils. So an inline motorized cutting device should be provided for cutting the
pipes into required sizes. For ascertaining the consistency in product quality the
unit should be equipped with process control laboratory for preliminary testing
of raw materials. The unit may also have arrangement for quality testing of
finished products.

BASIS OF PROJECT SELECTION :

1. Orissa and surrounding states like Chatishgarh, Jharkhand,
Andhrapradesh require huge quantities of PVC pipe for irrigation
programmes funded by both State Govt. & Central Govt..
2. Plastic cluster is in operation in Balasore.
3. Skilled manpower and raw material are now plentily available.
4. The entrepreneur has vast experience on marketing of Pvc pipe.

PRESUMPTION :
1.
2.

3.
4.

5.
6.

The scheme is based on single shift basis and 300 working days per
annum and 80% efficiency of full capacity utilization.
The information supplied is based on a standard type of
manufacturing activity utilizing conventional technique of production
at optimum level of performance.
The factory shed and land has been taken in monthly rental basis.
The cost respect of machinery and equipment, products, raw
materials, etc. are those generally prevailing at the time of preparation
of the project.
A period of three years may be required to envisage full capacity
utilization.
The rate of interest has been taken as 12% per annum on both fixed
and working capital.

PRODUCTION CAPACITY :

UTILITY :

768 MT.

Approx. 15,000 KW load

Financial Aspects :
Fixed capital :
LAND AND BUILDING:
Land : Purchase fr om IDCO 2 acres

Rs. 6,00,000/-

Work shop shed : 10,000 sq.ft.X 3 nos. @ 300/sq.ft.

Office Building : 1000 sq.ft. @ 400/sq.ft.
Store cum godown 20,000 sq.ft. @ 300/sq.ft.
Watchman shed , Parking stand,
Boundary etc.
LS
Bore well
LS

Rs.90,00,000/Rs. 4,00,000/Rs.60,00,000/Rs. 5,00,000/Rs. 1,00,000/Rs.1,66,00,000/-

MACHINERY AND EQUIPMENT:

Sl. no.
1.

2.

3.

4.
5.
6.

Particulars
High speed Mixer, nonschell
type cap.50 kg. per batch/hr.
filled with complete controls and
cooling arrangement.
65 mm/18 V PVC rigid pipe
extrusion plant consisting of
twin screw extruder, vacuum
sizing unit, cooling tank, haul off
unit and cutting device complete
with controls and motor, etc. 200
kg/hr.
Dies size 20, 25, 45, 63, 75, 90,
110 mm and mandrel size 2.5
kg/cm2, 4 kg/cm2, 6 kg/cm2, 10
kg/cm2.
Scraper, grinder, heavy duty
fitted with electric Motor 5 HP
Overhead water tank and
recycling Pump units
Weighing balance, heavy type
industrial model 100 gm to 5 kg.

No./rate
4 @ 90,000

Value in Rs.
3,60,000

2 @ 20,00,000

40,00,000

1 set each

2,00,000

50,000

35,000

10,000

7.
8.

9.

10.

11.

-do1 kg. to 100 kg 1

Pipe storage, racks, maintenance
of small hand tools, greasing,
oiling equipment, etc.
Testing and Quality controls:
Chemical testing lab.,having
chemical balance, Oven and
equipment
with
testing
equipment, apparatus for testing
bulk density, specific gravity
lead and tin estimation (in ppm),
Lab. Equipment consisting of
capacity
testing
apparatus,
Impact
tests,
compressive
strength, Hydraulic pressure
(long
term,
short
term)
apparatus.
Expr.
For
electrification,
installation of machinery, water
supply, etc.
Office furniture & stationery

PRE-OPERATIVE EXPR.
1.
Preparation of project profile
2.
Contingency
3.
Sale tax regn.
(CST & OST)
4.
Telephone
5.
Travelling
6.
Trial run
7.
Misc. exp.

15,000
30,000

1,30,000

2,00,000

50,000
50,80,000

1,000
1,000
5,000
2,000
10,000
12,000
2,000
33,000

Fixed Capital:
Land & Shed :
Machinery & equipment
Pre-operative expenditure

1,66,00,000
50,80,000
33,000
2,17,13,000

WORKING CAPITAL P.M.

A)
S.no.
1.
2.
3.
4.
5.
6.
7.
8.

Staff and Labour payment :

Designation
No./salary
Manager
1 @ Rs.10,000
Production chemist cum 1 @ Rs.7,000
supervisor
Clerk cum typist
1 @ Rs.5,000
Accountant
1 @ Rs.4,500
Storekeeper
1 @ Rs.4,000
Skilled workers
4 @ Rs.5,000
Semi skilled workers
4 @ Rs.4,000
Peon cum watchman
2 @ Rs.3,000
Total

B)
Raw material P.M. :
S.no. Item
1.
2.
3.
4.
5.
6.

PVC Resin
D.O.P.
Stabilizers
Lubricants
Colours
Fillers

C)

Total salary
10,000
7,000
5,000
4,500
4,000
20,000
16,000
6,000
72,500

Qty./rate
58,000 @ Rs.54
2200 @ 60/1200 @ 60/600 @ 62/200 @ 140/3800 @ 10/TOTAL :

Amount in
Rs.
31,32,000
1,32,000
72,000
37,200
28,000
38,000
34,39,200

Utilities P.M. :

Electricity 15000 KWH @ 3.20

For factory & water supply
D)

Other contingent Expenditure (P.M.):

1.
2.
3.
4.

Postage and stationery

Advertisement and publicity
Traveling
Telephone

48,000

3,000
10,000
4,000
700
17,700

Sales per year :

768 MT.

Total working capital per month

Rs. 35,77,400/-

Working capital for 3 months =

Total Capital investment
Working capital investment

Rs. 1,07,32,200/Rs. 2,17,13,000

Rs. 1,07,32,200
Rs. 3,24,45,200

FINANCIAL ANALYSIS:
1.
2.
3.
4.
5.

Working capital for 12 months

Depreciation on plant and machinery @ 10%
Dep. On shed @ 5%
Depreciation on office furniture @ 20%
Interest on total invt. @ 12%

4,29,28,800
4,83,000
8,00,000
10,000
38,93,424
4,81,15,224

TURNOVER (Per annum):

Rigid PVC pipe produced per month using 80% efficiency
Of machinery
Turnover = 768 MT @ 73,000 per MT

64,000 kg.
Rs. 5,60,64,000

PROFIT:
=

Rs.5,60,64,000 -

4,81,15,224 = 79,48,776/-

Rate of return =

Profit x 100
Total invt.

Net profit ratio =

Profit x 100
Turnover

14%

24.4%

BREAK EVEN ANALYSIS:

Fixed cost:
1.
2.
3.
4.
5.
6.

B.E.P. =

Depreciation on plant and machinery @ 10%

Dep. On shed @ 5%
Depreciation on office furniture @ 20%
Interest on total invt. @ 12%
40% salary
40% other exp.

Fixed cost x profit

Fixed cost + profit

41%

4,83,000
8,00,000
10,000
38,93,424
3,48,000
84,960
56,19,384

10

ADDRESSES OF MACHINERY SUPPLIERS:

1.

M/s.DGP Windsor (India) Ltd., Regd. Office: E-6, U-2 Road, Wagle
Industrial Estate, Thane-400604, Maharashtra.
Branch office: P-157, CIT Scheme, VII-M, Ist floor, Near Ultadanga,
VIP Road Crossing, Kolkata-700054.
M/s.Brimco Plastic Machinery Corporation (P)Ltd., Plot No.55, Govt.
Kandivili Ind.Estate, Charkop, Kandivili (W), Mumbai-400057.
M/s.Neptune Plastic & Metal Industries, 16, India Exchange Place,
Kolkata-700001.
M/s.Shree Intertrade Pvt. Ltd., 4, Shree Satsang Society, Near Old
Railway Crossing, Maninagar (East), Ahmedabad-380008, Gujarat.
M/s.Golden Engg.Works, 87997, Shidipura Crossing, Rani Jhansi Road,
New Delhi-110005.
M/s.R.S.Mech Engineers (Regd.), Ganesh nagar, St.No.3, Link Road,
Opp. Transport nagar, Industrial Estate-A, Ludhiana-141003, Punjab.

2.
3.
4.
5.
6.

ADDRESSES OF RAW MATERIALS SUPPLIERS:

PVC Resin:
1.
2.
3.
4.

M/s.Sri Ram Chemical Industries, Sri Rampura, Kota, Rajasthan.

M/s. National Organic Chemical Industries Ltd., Sandoz House,
Dr.A.Besant Road, Worli, Mumbai-400001.
M/s.Chemplast, Dhun Building, 175/1, Mount Road, Madras-2.
M/s.Plastic Resin & Chemicals Ltd., Bharat Insurance Building, 15-A,
Nariman Circle, Mumbai-400001.

LIST OF UNITS SET UP BY USING THIS PROJECT PROFILE :

1. M/S. Jaiswal PVC pipes, Balasore
2. M/S. Hari Udyog Pvt. Ltd, Balasore
3. Neelachal Plastics, patia, BBSR.