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CALCIUM CARBONATE
CONTENTS SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT TRENDS SECTION V PRICE TRENDS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIALS REQUIREMENTS AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS SECTION XI SWOT ANALYSIS
SECTION XII FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS
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SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATIONS
1.1. Types The natural ground Calcium carbonate and the precipitated material compete industrially, based primarily on particle size and the characteristics imparted to the product. The precipitated types are distinguished by a finer and more uniform particle size, a narrower particle size range and a higher degree of chemical purity. 1.2. Product Specifications Calcium carbonate finds applications in diversified sector and the specifications of the product required by different applications are marginally different. 1.2.1. Rubber industry Characteristics
Requirements
Sieve residue on 150 micron IS sieve % by mass max. 0.01 Hydrochloric acid insolubles % by mass,max. 0.2 PH 10.5 ± 0.5 Loss on ignition, % by mass 43 to 46 Mn % by mass, max. 0.02 Cu% by mass, max. 0.005 Total fatty matter % by mass 2 to 3.5 Mixed oxides, % by mass 1.0 CaCO3, % and MgCO3 together % by mass min. 92 Moisture content, % by mass max. 0.075 The ignition temperature shall be 950 ± 25 Deg C
Natural ground Calcium carbonate (Occurs naturally as the principal constituent of limestone, marbel and chalk.) Precipitated calcium carbonate (Industrially produced) Activated calcium carbonate (Industrially produced)
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1.2.2. Cosmetic industry S.No.
Characteristics Requirements
1. Fineness: Residue on 150 m IS sieve, % by mass, max.
0.1
2. Loss on drying, % wt. mass, max. 1.0 3. Bulk density, g/ml As agreed to between the purchaser
and supplier 4. Calcium carbonate (as CCO3), % by mass (on
dry basis), min. 98.0
5. Magnesium and alkali salts, % by mass 1.0 max 6. Aluminium, iron, phosphates and matter
insoluble in Hydrochloric acid, % by mass 0.5 max
7. Iron (as Fe), % by mass, max. 0.03 8. Arsenic (as AS2O3), parts per million , max. 2 9. Heavy metals (as Pb), parts/million, max. 10 10. Chlorides (as Cl), % by mass, max. 0.04 11. pH of 10% aqueous suspension 9.0 to 10.0 12. Barium to pass test 13. Sulphates to pass test 14. Flow point As agreed to between the purchaser
and the supplier 1.2.3. Explosive and Pyrotechnic industry Calcium carbonate is used widely in propellent, pyrotechnic and other explosive compositions. This standard has been drawn up with a view to aiding the manufacturers of explosives and pyrotechnics in procuring material of requisite quality. Types The material shall be of the following two types: Type I Calcium carbonate, natural and Type Ii Calcium carbonate, precipitated Description: Type I of the material shall be in the form of powdered calcite or limestone. It shall be white to off-white in colour. Type II of the material shall be in the form of white powder. The material shall be free from extraneous matter and grit.
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Requirements for Calcium carbonate for explosive and pyrotechnic industry:
S.No. Characteristics Requirement of Type I Type II
1. Loss on drying, % by mass, max.
0.05 0.5
2. Calcium carbonate (on dry basis), % by mass, min.
98.0 98.0
3. Matter insoluble in dilute Hydrochloric acid, % by mass, min.
0.6 0.2
4. Fineness (material retained on 125-micron* IS sieve) % by mass
Nil Nil
5. Water insoluble alkali (as Na2O) % by mass, max.
0.03 0.05
6. Grit, % by mass, max.
0.06 0.02
7. Chlorides (as Cl), % by mass, max.
0.05 0.04
8. Total water soluble matter, % by mass, max.
0.05 0.5
* 90 micron for material required for use in propellents Additional requirements for Calcium carbonate for use in propellents
S.No. Characteristics Requirement of
Type I Type II 1. Magnesium compounds (as MgCO3), % by
mass, max. 0.5 0.5
2. Iron (as Fe), % by mass, max. 0.05 0.05 3. Settling test (volume occupied by 5g), ml 4 to 10 4 to 6
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SECTION II
PRODUCT APPLICATIONS
Calcium carbonate
PVC products
Paints and surface coatings
Cosmetics/ tooth paste
Paper
Pharmaceuticals
Adhesive and explosives, dyestuffs, printing ink and others
Rubber
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SECTION III
INDIAN MANUFACTURERS There are number of producers of Calcium carbonate in small and medium scale sector. The Indian producers include the following * Aranthangi Chemicals (P) Ltd., 256/3A-1, Pudukkottai Road, Alianilai, Aranthangi 614 616 * Balaji Minerals 14, Agraharam Near Indian Oil Auto Stand Shevapet, Salem-636 002 * Beautify Products Ram Nivas, Kant Fabrics, Opp. City Police Station, Hospital Road, Jamnagar - 361 008. * Cal Chem 305, Srinivas Building, 382/84, Narsi Natha Street, Mumbai-400 009 * Calchem Industries (India) Ltd. Jaimurthy Minerals & Chemicals (P) Ltd. Abhay Pigments Pvt. Ltd. Chandbai Palace, Ground Floor, 60, Bazar Road, Bandra (W), Mumbai-400 050. * Citurgia Bio Chemicals Ltd., 237/3, GIDC, Notified Ares, P.O. Pandesara, Udhana, Dist. Surat-394 221 * Darsynth Chemical Industries Pvt. Ltd., Plot No. L-60, MIDC., Tarapur Industrial Area, Boisar, Tarapur, Dist. Thane * Dewan Rubber Industries Ltd P B No 143 Rithani Delhi - Meerut Road Meerut Uttar Pradesh
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* Famous Minerals And Chemicals Co 3/58, Sharda Building, Topiwala Lane, Lamington Road,Mumbai-400 007 * Gujarat Narmada Flyash Co Ltd 901 A-Wing Alkapuri Arcade R.C.Dutt Alkapuri Baroda Gujarat * Gulshan Sugars & Chemicals Ltd 112, Balaji Darshan, Tilak Road, Santacruz (W), Mumbai-54 * The Hindustan Mineral Products Pvt. Ltd. Plot No.2203, GIDC., Ankleshwar, Bharuch-393 002 * Indian Chemicals & Minerals 1/97, Thoppukadu,
Salem-636 016. * Jaimurthi Minerals & Chemicals Pvt Ltd., 101, Rizvi Chambers, 10, Hill Road, Mumbai-400 050 * Kalpana Chemicals E/186, First Floor, B.G. Tower, O/s. Delhi Gate Ahmedabad-380 004 * Kalpana Minerals Pvt. Ltd., Regd. Office : M-6, Sundaram, Sion Circle, Mumbai-400 022 * Kotak Chemicals Ltd., Surat Navsari State Highway, P.O. Bhestan, Surat-395 023 * Microfill Sharda Realtors Pvt. Ltd., 141-144, Siddharth Complex, Alkapuri, R.C.Dutt Road, Vadodoara-395 005 * 20 Microns Limited 20 Microns Group Company P.B.No. 4053, 307/308, Arundeep Complex 3rd Floor, Race Course (South),Baroda-390 007 * Niraj Petrochemicals Ltd Door No 7-1-78/2/A 2nd Floor Dharmkaran Road Ammerpet Hyderabad Andhra Pradesh
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* Ramdev Chem Plot No.33, Sector II, Vasai Taluka Co-Op. Indl. Estate, Gauraipada, Vasai (E), Dist. Thane-401 208 * Ruia Chemicals & Industries Ltd., Landmark, 5th Floor, Calcutta-700 020 * Sukkan Industries 110-A, GIDC Estate, Makarpura Road, Vadodara-390 010 * Sturdia Chemicals Ltd., Citurgia Biochemicals Ltd., Regd. Office : Neville House, J.N. Heredia Marg, Ballard Estate, Mumbai-400 001 * Vineeth Chemicals 1,Agarwals Indl Estate, No.3, Satvli Road, Vasai (E),Dist. Thane-401 208 * Superior Carbonates and Chemicals Ltd. F-1, Race Course, Dehradun * Searsole Chemicals, U.P. * U P Lime Chem Ltd Kothi Anta Ghar 183 Civil Lines Bijnor
Indian Installed capacity Around 1,75,000 tonnes per annum.
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SECTION IV
IMPORT/EXPORT TRENDS
4.1. IMPORTS 4.1.1. Pattern of countrywise imports Period April 2000 to March 2001 Country Quantity in kg
Australia 33000 Austria 20000 Belgium 2400 Brazil 200000 Chinese Taipei 3936600 China P RP 341500 France 4651010 German F Rep 25277 Indonesia 1735500 Iran 128000 Italy 78030 Japan 64470 Jordan 140050 Korea RP 595318 Malaysia 1771477 Netherland 2000 Spain 160000 Switzerland 573830 Thailand 7085990 United Arab Emirates 2000 UK 321610 USA 32220 4.1.2. Present import level Around 23000 tonnes per annum
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4.1.3. Sample of individual imports of Calcium Carbonate Name of the Importers Quantity in
tonnes Value in Rs. Country Date Port
Asian Paints (I) Ltd., 0.065 204791 Iran 09.01.2002 to 16.01.2002
Mumbai
Asian Paints (I) Ltd., 43.200 137947 Iran 01.02.2002 to 09.02.2002
Mumbai
Henkel Teroson India 0.200 7319 Germany 01.03.2002 to 08.03.2002
Mumbai
Henkel Teroson India 0.100 1866 Korea S. 01.04.2002 to 05.04.2002
Mumbai
Asian Paints Inds. 21.000 197868 France 01.05 2002 to 07.05.2002
Mumbai
Dura Chemicals Corpn. Ltd.,
21.000 114672 Malaysia 03.06.2002 to 10.06.2002
Chennai
Dura Chemicals Corpn. Ltd.,
21.000 114555 Malaysia 01.07.2002 to 05.07.2002
Mumbai
Atul Paints & Chemls. 12.000 514130 Japan 01.08.2002 to 07.08.2002
Mumbai
Polycoat Powders 21.000 207618 France 02.09.2002 to 06.09.2002
Mumbai
Asian Paints (I) Ltd., 20.000 124341 Taiwan 01.10.2002 to 10.10.2002
Mumbai
Bilt Graphic Papers Ltd., 400.00 2339160 Taiwan 16.11.2002 to 22.11.2002
Mumbai
Asian Paints (I) Ltd., 20.000 97465 Taiwan 26.12.2002 to 31.12.2002
Mumbai
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4.2. EXPORTS 4.2.1. Pattern of countrywise exports Period April 2000 to March 2001 Total quantity 3534652 KGS Country Quantity in Kg
Bangladesh 1169220 Belgium 48000 Canada 120770 Cuba 20000 Egypt A RP 37000 Ethiopia 700 German F Rep 21000 Italy 65770 Kenya 114167 Nepal 440110 Newzealand 6795 Nigeria 20000 Saudi Arabia 30000 Singapore 23000 Sri Lanka 112525 Tanzania REP 115500 United Arab Emirates 276640 UK 20100 USA 646355 Venezuela 81000 Vietnam Soc Rep 85000 Yemen Republic 81000 4.2.2. Present export level Around 4000 tonnes per annum
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4.2.3. Sample of individual exports of Calcium Carbonate Name of the Exporters Quantity in
tonnes Value in Rs. Country Date Port
Highland International 0.100 1182 Dubai 01.01.2002 to 16.01.2002
Mumbai
Greenfield international 54.000 441278 Yangoon 01.02.2002 to 15.02.2002
Chennai
Citurgia Biochemicals Ltd.,
0.650 8025 Colombo 01.03.2002 to 15.03.2002
Mumbai
Citurgia Biochemicals Ltd.,
0.650 8033 Colombo 01.04.2002 to 30.04.2002
Mumbai
Supa Sales & Services 10.000 131625 Djibouti 01.05.2002 to 31.05.2002
Mumbai
Citurgia Biochemicals Ltd.,
0.650 8074 Colombo 01.06.2002 to 15.06.2002
Mumbai
Citurgia Biochemicals Ltd.,
3.000 41438 Colombo 01.07.2002 to 15.07.2002
Mumbai
Sare Lee JTK Ltd., 4.000 24720 Colombo 14.08.2002 to 31.08.2002
Mumbai
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SECTION V
PRICE TRENDS
Product Calcium carbonate (Activated) Basic price Rs.16 per kg Taxes and duties Extra as applicable Product Calcium carbonate (Precipitated) Basic price Rs.10 per kg Taxes and duties Extra as applicable
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SECTION VI
INDIAN DEMAND
Precipitated Calcium carbonate (in tonnes per annum)
Sector
Present demand
Paper 19000 PVC 50970 Rubber 29400 Cosmetic 19000 Paint 2000 Pharmaceuticals 1000 Miscellaneous 5000 Total 126370
Activated calcium carbonate: (in tonnes per annum)
Sector
Present demand
PVC 33600 Rubber 12600 Cosmetic 2000 Total 48200
Total demand (in tonnes per annum)
Precipitated Calcium carbonate 126370 Activated Calcium carbonate 48200 Total 174570
Growth rate in annual demand for Precipitated calcium carbonate:
Sector
In percentage
Paper 6 to 7 PVC 10 to 11 Rubber 9 to 10 Cosmetic 12 to 13 Paint 10 to 11 Pharmaceuticals 12 to 13
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SECTION VII
BROAD OUTLINE OF MANUFACTURING PROCESS
Precipitated calcium carbonate is manufactured by calcining limestone and recarbonating the hydrated slaked lime in vertical carbonation towers. The reaction is exothermic and proper temperature control is maintained to get desired quality of the product. CaCO3 ------------ CO + CO2 Limestone Na2CO3 + CO2 + H2O ----- 2NaHCO3 2NaHCO3 ------------ Na2CO3 + CO2 + H2O CaO + CO ------- CaCO3 (Precipitated) Technology developments Technology based on Crystal Morphology:- A new technology based on Crystal Morphology of Precipitated Calcium carbonate (PCC) have been developed by Mineral Technologies, USA. Minerals Technologies, a company based in New York city has developed recently a patented PCC technology based on the manipulation of PCC crystal morphology. Minerals Technologies has a long experience in operating limestone and take mines, manufacturing mineral based furnace linings and producing PCC. The company has patented technology allowing for the reaction of water, limestone and carbon dioxide to produce a synthetic PCC. The company now produces the mineral in a variety of particle sizes from 0.01 to 100 um and shapes from spherical to scalenohidral and rhombhohedral. The company now offers 12 different types of PCC. This synthetic PCC has found many applications in industry. It has lowered the cost of manufacturing fine printing and writing paper. Specially engineered PCC crystals displace more expensive wood pulp and titanium dioxide and offer varying levels of gloss, light scattering or paper filling properties. Current trends in paper business in USA seem to favour increasing use of PCC. Acid Tolerant Technology The R&D of Mineral Technologies has led to the development of an acid tolerant PCC. This breakthrough could extend PCC into the market for newsprint, directory, magazine and catalog grade papers. Acid tolerant PCC opens a new paper market for PC. The new acid tolerant PCC provides a way to improve the brightness and quality of newsprint.
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Certain grades of PCC offer such good light scattering ability that they serve an additional benefit of replacing TiO2 in fine paper making. As PCC is much cheaper in price than TiO2, the advantage of replacing TiO2 with PCC is obvious economically. Minerals Technologies R&D has developed yet another process to produce PCC that could further endear the company to its paper industry customers. Its lime soda process yields byproduct caustic soda. In this process, soda ash can replace the carbon dioxide the company now gets from its mill host. Minerals Technologies has signed agreements with two paper companies to provide Precipitated Calcium carbonate (PCC) using its acid- tolerant technology at three groundwood paper mills in North America. Source of technology * T.S. Enterprises, Works : E-416 Road No.14 Vishwakarma Ind.Area,
Jaipur-302 013, Rajasthan Office : A-151, Nehru Nagar, Jaipur - 302 016. Plant and machinery Carbonator tank Slurry and water storage tank Hydration tank
The Anup Engineering Ltd., P.B. No.1158, Ahmedabad-380 002 Aristo Engineers J-3, Vikas Udyog Nagar, Behind Kasturi Tiwer Phatak-Goddeo Road, Bhayander (E), Thane-401 105 Abhinav Polymers A/2, 3909, GIDC Estate, Phase - IV, Vatva Ahmedabad-382 445 Gujarat
Filter press Abhinav Polymers A/2, 3909, GIDC Estate, Phase - IV, Vatva Ahmedabad-382 445 Gujarat Chemi Filter Corpn., Shop No.3, Avanti Apts. Laxman Mhatre Road, Navagaon, Dahisar (W), Mumbai-400 068
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Centrifuge
The Anup Engineering Ltd., P.B. No.1158, Ahmedabad-380 002 B.M.T. Industries 15, Neelkanth Shopping Arcade 1st Floor, Chemburkar Marg, Chembur, Mumbai-400 071
Micropulveriser Ganson Ltd. 645, Anna Salai Chennai-600 006 ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Frigmaires Engineers PO Box 16353, 8, Janata Industrial Estate Senapati Bapat Marg Opp Phoenix Mill, Lower Parel (W) Mumbai-400 013
Rotary kiln Veesons Boiler Engineers C-14/2, Industrial Estate, Trichy-620 015 Nadi Airtechnics EBM - Nadi International Pvt. Ltd. (An Indo-German Joint Venture) 26 and 26/3, G.N.T. Road, Erukkencherry, Chennai-600 118, Tamil Nadu
Air blowers and compressor Ishwar Engineering Co., 8/NPFG Laxmi Indl. Estate, New Link Road, Andheri (W), Mumbai-400 053 Intensive Air Systems Ltd Regd. Office : Survey No.273 Bonthapally, Jinnaram Mandal Medak (Dist.)-502 313 Andhra Pradesh
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SECTION VIII
RAW MATERIAL REQUIREMENTS AND AVAILABILITY Raw material requirement Basis : One tonne of Precipitated Calcium Carbonate Limestone (45% of Calcium Carbonate) 2000 kgs Soda ash 8 Kgs Coal 600 Kgs Utilities Water 10000 gal. Installed power 200 H.P. Source of supply of raw materials
Name of the raw materials
Name of the company
Lime stone The major raw material required for the manufacture of Precipitated Calcium carbonate is Limestone. Limestone is abundantly available. Best quality limestone is available with Binny Limited, Mines at Rayalacheruvu. No problems are anticipated in procurement of limestone.
Soda ash Tuticorin Alkalies & Chemicals Ltd., Tamil Nadu Tata Chemicals Ltd., Gujarat Sourashtra Chemicals, Gujarat Gujarat Heavy Chemicals Ltd., Gujarat DCW Ltd., Gujarat Punjab National Fertilisers, Punjab
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SECTION IX
GLOBAL SCENARIO Global consumption pattern of Precipitated calcium carbonate Industry
Consumption in %
Paper 72 Paints 8 Plastics 5 Rubber 4.5 Food, cosmetics and pharmaceuticals 4 Textile packing 2.5 Putties, caulks, sealants 2.5 Adhesives 1 Printing ink 0.5 Thrust Area for Demand in the Global Market In developed countries, the paper industry is the largest consumer of Calcium carbonate, as a filler and in coatings. Coarser particle size grades (over 2 micron) are used as fillers, where alkaline pigment with low water demand is preferred. Most of the Precipitated Calcium carbonate go into paper coatings alone or in conjunction with clay. In this application, Precipitated Calcium carbonate adds brightness, opacity and better printing ink receptivity. In developed countries, next to paper industry, paint industry is second in consumption of Calcium carbonate. They are widely used both in alkyd and latex flat wall paints. These grades provide uniform floating, as well as good colour and uniformity on recoat and overlap. The plastic industry uses Precipitated Calcium carbonate in different areas. Precipitated Calcium carbonate also finds wide use in other thermosetting plastic compounds. The printing ink industry uses the ultrafine Precipitated Calcium carbonate in high quality letter press and high quality ink. Caulks and sealants especially the higher quality elastomeric types are especially formulated with Precipitated Calcium carbonate as semi reinforcing filler types. Rubber compounding consumes a considerable amount of ultrafine Precipitated Calcium carbonate for use as reinforcing fillers.
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The miscellaneous end use areas are in foods and pharmaceuticals. Calcium carbonate are approved by the Foods and Drug Administration of USA, primarily for Calcium enrichment for chewing gum based and for cherry brining. Major Global producers of Calcium Carbonate The international producers of Calcium carbonate includes the following. 1. Deutsche Solvay-Werke,Germany. 2 Steep Rock Resources,USA 3 Castlemore Minerals Ltd.,Republic of Ireland. 4 Central Glass Co, Ltd.Japan. 5 The Mitsubishi Corporation Chemicals Group, Japan. 6 ECC International, USA 7 Sturge, John & E. Ltd.USA 8. Bayer AG, Germany. 9. Chemische Fabrik Kalk GmbH,Germany. 10. Chemo-Tech Corporation, Taiwan. 11. C.K. Willams & Co.,USA. 12 Ashland Chemical Inc.,USA 13 General Electric Components Marketing & Sales,USA 14 International Chemicals Inc.,USA 15 Mallinckrodt Inc.,USA 16. Charles B. Chrystal Co. Inc.,USA. 17. Franklin Industrial Minerals, USA 18. J.M. Hubber Corporation,USA. 19. Kings Field,USA. 20. Minerals technologies Inc.,USA 21. Mississippi Lime Co.,USA. 22. Omya Inc.,USA,. 23. Pennie Darlingston Magnesia Ltd.,U.K. 24. Poly Research Corp.,USA 25. Rhone Poulenc Northern American Chemicals,USA 26. Spectrum Bulk Chemicals,USA 27. Streetley Quarry Products US Inc.,USA. 28. Whittaker, Clark & Daniels, Inc.,USA. 29. American Ingredients Inc. USA 30. ECC International,USA 31. NAOH Chemical Div., NOAH Technologies Corp.USA
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SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST
AND PROFITABILITY PROJECTIONS
10.1. ECONOMIC CAPACITY AND PROJECT COST
Economic capacity : 2100 tonnes per annum Project cost : 194 Assessment of project cost 1. Land S.No. Description Cost
Rs.in lakhs
1.1 Cost of land of 1 acre at Rs.5.5 lakh per acre
5.5
1.2 Cost of levelling, laying internal roads/fencing and compound wall
0.55
Subtotal 6.05 2. Building S.No. Description Cost
Rs.in lakhs
2.1 Factory building of area 720 sq.m. at Rs.3200/sq.m.
23.04
2.2 Non-factory building of area 80 sq.m.at Rs.4500/sq.m.
3.6
Subtotal 26.64
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3. Cost of Plant & Machinery S.No. Description Cost
Rs.in lakhs
3.1 Cost of basic plant and machinery 66 3.2 Instrumentation and control 5 3.3 Pipelines and valves 6.6 3.4 Structurals for erection 3.3 Subtotal 80.9 3.5 Octroi, excise duty, sales tax, etc.at 12%� 9.7 3.6 Packaging and insurance charges (2%) 1.62 3.7 Transportation charges (2%) 1.62 3.8 Machinery stores and spares (2%) 1.62 3.9 Foundation charges (2%) 1.62 3.10 Installation charges (2%) 1.62 Total cost of plant and Machinery 98.7 4. Technical know-how fees 2 5. Miscellaneous fixed assets S.No. Description Cost
Rs.in lakhs
5.1. Electrification 3 5.2. Steam boiler and auxillaries 5 5.3. Water storage tank, borewell etc. 0.75 5.4. Fuel storage tank 1.0 5.5. Laboratory equipment 1.0 5.6. Office machinery & equipment 1.0 5.7. Material handling equipment, packaging machinery,
weigh balance, etc. 1.0
5.8. Diesel generator 4.6 5.9. Effluent treatment 1.6 Total 18.95
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6. Preliminary & Pre-operative expenses: S.No. Description Cost
Rs.in lakhs
6.1. Preliminary expenses 0.74 6.2. Pre-operative expenses:- 0 6.2.1 Establishment 0.36 6.2.2 Rent rates and taxes 0.36 6.2.3 Travelling expenses 0.36 6.2.4 Interest and commitment charges on borrowings 15.6 6.2.5 Insurance during construction period 1.14 6.2.6 Other preoperative expenses and deposits 0 6.2.7 Interest on deferred payment 0 Total 18.56 7. Provision for contingency Rs.10.34 lakhs 8. Working capital margin Rs. 13.1 lakhs 9. Total project cost Rs.193.54 lakhs Say Rs.194 lakhs 10. Means of finance Promoter's contribution Rs 78 lakhs Term loan from financing institutions Rs 116 lakhs Total project cost Rs 194 lakhs
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11. Financial statements Cost of production A Variable cost
Rs. in lakhs
Raw material and utilities 62.1 Spares and maintenance 5.9 Selling expenses 9.45 Total variable cost (A)
77.45
B Fixed cost
Salaries and wages 12 Interest on term loan and working capital loan 27.95 Depreciation 12.99 Administrative expenses 5.67 Total fixed cost (B)
58.61
C. Total cost of production (A+B)
136.06
D. Selling price per kg. (in Rupees)
9
E. Annual sales turnover
189
F. Net profit before tax (E-C)
52.94
G. Breakeven point in %
53%
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SECTION XI
SWOT ANALYSIS
Strength Availability of raw material inadequate quantity
Weakness Lack of competitiveness in the global market
Opportunity Growing market
Threat Imports due to number of grades offered by global manufacturer
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SECTION XII
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND
RECOMMENDATIONS Calcium Carbonate industry is of particular relevance to Indian conditions, in view of the adequate availability of raw material namely Lime Stone in the country and also the fact that the economic capacity of Calcium Carbonate and the project cost would not be high. This would make it possible to implement the project in medium scale sector. With regard to the cost of production, fuel and energy factors are important and such energy factors have to be maintained at competitive level. With regard to the quality of the product, international companies produce products in various grades catering to the requirements of individual user sector like PVC, Paper etc. Indian units are yet to make large number of grades of products, for meeting the specific requirements of end users. In the case of cosmetic industry, there appears to be particular preference for micronised calcium carbonate, in view of its higher surface area. In considering the Calcium Carbonate project, the factors that should be considered are the following. * Proximity to the source of good quality lime stone. Most of the Calcium Carbonate units have been located near the limestone deposits. * The operating parameters of the project from the point of view of the energy requirements have to be carefully studied. * Considering the fact that the consumers of Calcium Carbonate like toothpaste would opt for good quality of the product even without consideration for marginal increase in price, ensuring adequate quality would significantly help the project in the competitive market. * It is necessary to aviod putting up small size plant, since it would make it difficult to introduce adequate energy and quality management techniques in small plants. * The scope for optimisation of the quality and energy management and also the growth rate in demand would justify a plant of large capacity.