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ON
WELDING ELECTRODES
LOCATION:
SY NO ; 10 5/ 11,
J AYA K R I S H N A P U R A M V I L L A G E ,
T O L U S U R U P A L L I PA N C H A YAT,
TEKKALI MANDAL
S RI K AK U L A M D I S T.
Page 1 of 24
TAB L E O F C O N T E N T S
S.NO
PARTI C U L A R S
PAG E N O
1.
P R O J E C T AT A G L A N C E
3 - 4
2.
INTRODUCTION
5 - 5
3.
6 - 6
4.
7 7
5.
8 - 9
6.
10 - 10
7.
RAW MATERIALS
11- 11
8.
12 - 12
9.
13 - 13
10.
14 - 15
11.
16 - 16
12.
SW OT ANA LYS IS
17 - 17
13.
I M P L E M E N TATI O N S C H E D U L E
18 18
14.
PROJECT BENEFITS
19 20
15.
21 - 21
16.
ASSUMPTIONS
22 - 23
Page 2 of 24
Unit Profile
Project Cost /
Means
of
Finance
PAR T I C U L A R S
LAND
BUILDINGS
PLANT
&
MACHINERY
ERECTION
&
E L E C T R I F I C ATI O N
WORKING
C A P I TAL M A R G I N
T O TAL
T O TAL
Means of Finance:
Capital
: 41.50
Limits Required
Term Loan
: 68.50
Working Capital : 50.00
Total
: 118.50
Page 3 of 24
110 . 0 0
02. INTRODUCTION
Page 4 of 24
Electrode
An electrode is an electrical conductor used to make contact with a nonmetallic part
of a circuit (e.g. a semiconductor, an electrolyte, a vacuum or air). The word was coined
by William
Whewell at
the
request
of
the
scientist Michael
Faraday from
the Greek words elektron, meaning amber (from which the word electricity is derived),
and hodos, a way.
Primary cell
A primary cell is a special type of electrochemical cell in which the reaction cannot be
reversed, and the identities of the anode and cathode are therefore fixed. The anode is
always the negative electrode. The cell can be discharged but not recharged.
Secondary cell
A secondary cell, for example a rechargeable battery, is a cell in which the chemical
reactions are reversible. When the cell is being charged, the anode becomes the positive (+)
and the cathode the negative () electrode. This is also the case in an electrolytic cell. When
Page 5 of 24
the cell is being discharged, it behaves like a primary cell, with the anode as the negative
and the cathode as the positive electrode.
Other anodes and cathodes
In a vacuum tube or a semiconductor having polarity (diodes, electrolytic capacitors) the
anode is the positive (+) electrode and the cathode the negative (). The electrons enter the
device through the cathode and exit the device through the anode. Many devices have other
electrodes to control operation, e.g., base, gate, control grid.
In a three-electrode cell, a counter electrode, also called an auxiliary electrode, is used only
to make a connection to the electrolyte so that a current can be applied to the working
electrode. The counter electrode is usually made of an inert material, such as a noble
metal or graphite, to keep it from dissolving.
Welding electrodes
In arc welding an electrode is used to conduct current through a workpiece to fuse two
pieces together. Depending upon the process, the electrode is either consumable, in the
case of gas metal arc welding or shielded metal arc welding, or non-consumable, such as
in gas tungsten arc welding. For a direct current system the weld rod or stick may be a
cathode for a filling type weld or an anode for other welding processes. For an alternating
current arc welder the welding electrode would not be considered an anode or cathode.
Alternating current electrodes
For electrical systems which use alternating current the electrodes are the connections from
the circuitry to the object to be acted upon by the electric current but are not designated
anode or cathode because the direction of flow of the electrons changes periodically, usually
many times per second.
Uses
Electrodes are used to provide current through nonmetal objects to alter them in numerous
ways and to measure conductivity for numerous purposes. Examples include:
brain
brain
Welding electrodes are used in welding various metals in the fabrication of equipment for chemical &
Allied industries, construction of steel structures such as bridges, factory sheds, in the manufacture of
ships, Vehicles and engineering equipment. Mild steel is welded by electrodes to a maximum among
all the metals & Alloys. Therefore M.S. Welding Electrode is the most widely used core wire. Besides
this, special grade electrodes are being developed for specific applications.
Welding electrodes comprise basically of steel core wire and coating ingredients or flux mild steel
core wires are used in majority of unalloyed steel electrodes. Besides mild steel, nickel, Nickelcopper, Nickel irons are also used in MIG & TIG welding. Stainless steel wires are also used for
welding in fertilizer, chemical & surgical instrument making industry. Coating ingredients are basically
rutile, potassium silicate, sodium silicate and minerals like quartz, calcite and mica. Ferro-alloys are
also used in the formulations of fluxes.
The bulk users of welding electrodes are the manufacturers detailed as under:
Welded Tubes & Pipes
Structural fabrication & Construction
Ship & Ship ancillaries
Industrial machinery tools & equipment; and
Misc. users including repairs and maintenance
Welding electrodes are used in different industries viz.
Thermal, hydel & nuclear power plants
Petrochemical Industry
Industrial machinery
Heavy engineering
Transportation
Fertilizers and Oil & water pipe lines
Page 7 of 24
envisaged
project
is
to
setup
at
Sy
No
10 5/ 11,
Jayakrishnapuram
Vil l a ge , Tek k a l i , S r i k a ku l a m D i s t f o r El e c t r od e s . T h e f i r m i s p ro mo t e d b y M r.
Sanjeevi Sreedhar. The firm acquired the land at, Sy No 105/11, Jayakrishna
Puram
Village,
Tek k a l i ,
Srikakulam
Dist.
The
total
project
out
lay
is
Page 8 of 24
SECTOR:
The Firm comes under Small Scale Sector and also under Priority Sector. The
Firm
has
already
obtained
for
Registration
Certificate
UDYOG AADHAR.
VUDA approval
V AT/ C S T.
Page 9 of 24
from
the
District
The
promoter
is
well
educated
and
professional
therefore
the
Firm
is
infusing additional funds for the expansion of the Firm at a later state.
Besides the Promoter qualified and experienced managerial personnel will
monitor the day-to-day management of the Firm.
Mr.Sreedhar Sanjeevi::
Sri
Sreedhar
residing
hailing
at
from
Sanjeevi
1-157,
S/o
Sri
Narasimha
Mirapakaya
respectable
Peta,
family.
He
Murthy,
Ravivalasa,
is
having
aged
about
Sriakakulam
43
years,
532
years experience
in
212
the
i s an In c o me Tax as s e s se .
Page 10 of 24
proposed
location
of
the
Firm
is
situated
at
Sy
No
1 05 / 11,
Ja y a k r i s h na pu r a m Vil l a ge , Tek k a l i , S r i k a ku l a m D i s t r i c t an d An dh r a P r a de s h .
The
site
is
located
centrally
notified
backward
area.
The
location
of
the
INCENTIVES
Reimbursement of 100% stamp duty and transfer duty paid by the
Page 11 of 24
Page 12 of 24
Page 13 of 24
from 2014 to 2020. Other applications such as wear plates and marine applications are
projected to grow moderately in the next few years.
Page 14 of 24
FL O W C H A RT:
Page 15 of 24
Rs in lacs
PAR T I C U L A R S
LAND
BUILDINGS
AMOUNT
OWN
13.00
PLANT
&
MACHINERY
ERECTION
&
E L E C T R I F I C ATI O N
WORKING
C A P I TAL M A R G I N
T O TAL
70.00
PAR T I C U L A R S
C A P I TAL
TERM LOAN
AMOUNT
41.50
68.50
T O TAL
110 . 0 0
10.00
17.00
110 . 0 0
Means of Finance:
Capital
: 41.50
Limits Required
Term Loan
: 68.50
Working Capital : 50.00
Total
: 118.50
Promoters Contribution : 37.72%
Debt / Equity
: 1.65:1
Land:
The proposed Fir m has already taken land & Buildings for own at , 105/ 11,
J a y a k r i s h n a P u r a m Vil l a g e , Tek k a l i , S r i k a k u l a m D i s t r i c t , An d h r a
Pradesh. The location is quite suitable for setting up the Firm.
Buildings:
The promoter wants to construct the civil constructions at an extent of
1266 Sq Ft worth of Rs. 13.00 Lacs
Plant & Machinery
The following machinery worth of Rs.70.00 lacs are required to run the
Firm.
The
Promoters
have
already
approached
reputed
suppliers,
and
Unit
Price
in Rs
190000.0
0
205000.0
0
310000.0
0
210000.0
0
475000.0
0
1250000.
00
700000.0
0
70000.00
6000.00
465000.0
0
800000.0
0
140000.0
0
170000.0
0
5000.00
200.00
18500.00
10000.00
28000.00
9500.00
10,00,000
.00
Page 18 of 24
Qt
y.
PRICE
in Rs
190000.0
0
205000.0
0
310000.0
0
210000.0
0
475000.0
0
1250000.
00
700000.0
0
70000.00
6000.00
465000.0
0
800000.0
0
140000.0
0
170000.0
0
20000.00
100000.0
0
37000.00
10000.00
28000.00
28500.00
10,00,00
0.00
6214500.
00
1
1
1
1
1
1
1
1
1
1
1
1
4
50
0
2
1
1
3
LS
HP
60. 00
Excise Duty
CST 2%
Total
651812.5
0
117326.2
5
6983638.
75
CAPITAL:
The
promoter
contributed
by
capital
the
was
fixed
Promoters
and
at
it
Rs.41.50 Lacs
will
works
out
which
37.72
will
be
of
the
p ro je c t co s t of Rs . 110 .0 0 La c s .
Term Loan:
The unit desires to avail Term Loan of Rs. 68.50 Lacs. from Bank/Financial Institute to meet part cost
of the project cost, which works out to 62.27 % of the total project cost of Rs. 110.00 Lacs. The
amount would be repayable in 28 quarterly installments of Rs. 2.44 Lacs each with a moratorium of
nine months from the date of commencement of Commercial Production. However, the interest on the
term loan would be payable as and when it is applied on the account. The detail of the repayment
programmed is placed in this report.
Page 19 of 24
13. SWOT
ANALYSIS
Strength:
1) The Firm is proposed OMEGA WELDING ELECTRODES.
2) The Promoters are experienced in the line of activity for over a
decade.
3) The products are essential for engineering works with constant demand.
3) Availability of Labour.
4) Availability of raw material.
B) Weakness:
The
Firm
has
to
compete
with
the
existing
manufactures
in
the
open
market. However, existing Companies are far away from the raw material
source the Firm can compete with them. The Firm is one of its kinds in the
area where the market potential as well as raw material is substan tial.
C) Opportunities:
The Firm has an opportunity to enhance the existing Business and process
products.
(D) Threats:
The
proposed
Electrodes
in
Firm
the
is
Firm
new
has
Firm
to
local
compete
market.
with
the
The
manufacturing
large
malty
of
national
share
for
the
possibilities
Firm
of
in
export
view
to
of
other
the
demand
states
supply
keeping
in
gap
and
view
the
also
the
eventual
Particulars
Acquisition of Land
Civil Works factory Building, machinery
Month
Start
OWN
NOV 2016
Month
Completion
OWN
NOV 2016
DEC 2016
DEC 2016
miscellaneous Building.
Plant & Machinery Indigenous
04.
05.
06.
07.
Placement of Order
Arrangement for Power
Arrangement for Water
Erection of Equipment
Initial Procurement of Raw Material and
NOV 2016
NOV 2016
DEC 2016
JAN2017
NOV 2016
NOV 2016
JAN 2017
JAN 2017
08.
09.
Chemical.
Tra in in g of Pe rso nn e l
Tria l Run
FEB 2017
MAR2017
FEB 2017
MAR 2017
10.
Commercial Production
APRIL 2017
Page 21 of 24
APRIL 2017
Firm
requires
60
H . P.
of
power
supply
under
L T.
Limits.
No
W ATE R :
The Firm requires 1000 Liters of w ater per day, for domestic purpose. A
provision is made for bore well and overhead tank in the scheme under
the head Civil Works.
EFFLUENTS:
There are no harmful effluents generated in the process. Pollution free
industry. No approval is required.
T R A N S P O R TATI O N :
The proposed Firm is located at The proposed site is located 500mts
from NH-5. There is no problem for transportation of raw material and
finished goods.
MANPOWER REQUIREMENTS:
The
Firm
will
administrative
be
staff.
employing
All
the
21
above
No
of
workers
persons
Page 22 of 24
can
be
besides
recruited
No
of
locally
16. ASSUMPTIONS
Assumptions underlying for preparation of Financial Statements:
Installed Capacity:
Description of the product
Installed capacity
No of working days in a year
No. of shifts
Installed capacity per annum
Operating Capacity:
ELECTRODES
4 MTS/DAY
300
1
1200 MTS
Year
2017-18(In MTS)
Utilization %
65
Electrodes
780
Cost of Raw Materials:
Description
Qty/MT
Unit Cost(Per
Amount
MT)
1
795.60
19000.00
151,16,400.00
Flux Compound
300.00
20,000.00
60,00,000.00
2 11, 16 , 40 0 .0 0
Page 23 of 24
Supervisor
3 Nos.
Skilled Workers
6 Nos.
Unskilled Workers
=
=
48,000
60,000
__________
1,38,000 * 12
or say
= 16,56,000
: 16.56 lacs
Cost of Sales :
Sales Revenue: Sales estimated as under:
S. No
Description
Qty
Unit Cost(Per
Amount
MT)
1
Electrodes
780 MTS
36,000
280,80,000.00
Or Say 280.80 Lacs
Page 24 of 24