BUSINESS PLAN - PROJECT REPORT ON

METALLURGICAL COKE

A. GENERAL INFORMATION

Name of the entrepreneur: Subhashree Diali Muduli

Date of Birth: 17/05/1994 Age in years: 21

Project: Manufacturing of artistic

Location: mukundarasad khurda

Type of organization: Proprietary

Name of the firm:

Address: At-Anata bihar, Talcher, Dist-Angul,Pin-759100

1. Educational qualification:

HSC or Degree/Diploma Institute Discipline Year of

below passing
B. Tech Indira Gandhi Mechanical 2015
Institute of Engineering
Technology,
Sarang.

2. Special Training:

Training in Institute Duration Achievement

CATIA, V5 CTTC, 1 month

R19 Bhubaneswar
AUTOCAD CTTC, 1 month
2010 Bhubaneswar

B. DETAILS OF PROJECT:
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 2.1 Production programme
 The production programme has been calculated by taking duble shift
operation during which the workers would be working 8 hours daily.
 The factory would be in operation for 300 days in a year.
 The total numbers of workers available is 28.
Totalnumber of hours available=300*8*28*2=134400
=134400hours
Downtime has been taken 20% of total available hours.
So, remaining time is 80% total available hours=134400*0.8
=107520hours
Taking capacity utilization of the factory equal to 74% we get the actual available
hours as 79564.8hours.
Now considering that the average manufacturing time of one mega ton Terracotta wares
= 87.46 hour
and Artistic wares is 600.18 hr
we get the maximum amount produced

S.No. Particulars Qty.(MT) Rate (Per Value in (Rs.) Capacity

tone) utilization
1. Terracotta wares 360 20,000/- 7200000 74%
2. Artistic wares 80 25,000/- 2000000 74%

Total 92,00,000

2.2 Machineries/Equipments

S.No Particulars Qty.(Nos) Rate (Rs)

1. Disintegrator with 2HP 01 36,000
motor and starter with
accessories
2. Pug mill (De-airing) with 01 48000
3 HP motor, starter
including other
accessories
3. Jigger & Jolly with 2 HP 02 26,000
motor, with other
accessories
4. Throw wheels 04 21,000
5. Pottery wheels power 03 18,000
operated with 1 HP motor
including accessories
6 Pot mill with 3 Nos. of 01 33,500
pots, motor with other
accessories

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7. Ball mill (Size 2x2`x2`) 01 43,000
with motor including
other accessories
8. Vibrating screen with 01 24,500
magnetic separator
including other
accessories
9. Shuttle kin (Size 01 6,45,000
3x3x3cubic
Total 15 1020000

2.3 Raw materials

S.No. Particular Qty. Rate (Rs.) Source

(MT)
1. Red Clay 30 1200*30=
36000
2. Feldspar Powder 02 3,000*2=
6000
3. Alumina Powder 2.5 5,000*2.5=1
2500
4. Ceramic stains - 4000
5. Quartz powder 1.5 3600*1.5=5
400
6. China clay 2.0 6,000*2=
12000
7. Fire Clay 1.0 2600
8. Plaster of Paris 1.0 5,000
Total 83500

2.4 Utilities

Sl. No. Particulars Annual Total annual Remarks

requirement expenses
1 Electricity
2 water
3 Total
/Electricity charges 20 X0.75X8X25X3 Rs.0.09 lakhs
Water. LS
Rs.2.10 lakhs

2.5 Manpower
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S. No. Particulars No Total
wages and
salaries in
Rs (per
year)
1. Self 01 43,000
2. Supervisor 02 12,000 24,000
3. Account cum clerk 01 7,000 7,000
4. Artiest/Skilled worker 10 8000 80,000
5. Unskilled worker 12 5000 60,000
6. Watchman cum peon 02 3,000 6,000
28 220,000
Total

C-3. FINANCIAL MANAGEMENT

COST OF THE PROJECT

Fixed capital

Sl No. Item Value

Land,1000 sqft Own

Construction charges for the manufacturing 4,00,000
unit 500 sqft @ Rs 800 per sqft
Machinery/Equipments 10,20,000

Pre operative Expenses 50,000

Total 1470000

Working capital

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 Sl. Item Duration Value(in lacs)
No.
1 Raw materials 1 month 92000
2 Staff and Labor 1 month 220000
3 Utilities 1 month 60000
4 Other expenses 1 month 20000
Total 392000

Total cost of the project

Sl. Particulars Value Remarks

No.
1 Fixed capital(Machinery & 14,70,000
Equipment)
2 Working capital for 3 months 11,76,000 3:1
Total 26.46 lacs

Means of finance

Sl Particulars Value Remarks

No.
1 Term loan 19,84,500 Loan taken @ 12%
interest
2 Self Investment 6,61,500 Money made by
selling parental
property of
8380sqft in
Bhubaneswar

Project profitability analysis

Sl. Description Value(in lacs)

No.
1 Sales revenue including 1400MTof rolled @ 292.32
Rs 20,880 per ton
2 Manufacturing expenses (As stated above) 206.4
(2.3 + 2.4 +2.5)
3 Selling and distribution expenses 3
4 Administrative expenses 1
5 Interest@ 12 % on total capital investment 11.3
6 Depreciation@ 10% 15.08
7 Gross profit [ 1 – ( 2+3+4+5+6)] 55.54
8 Income tax @ 30% 16.62

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 9 Net profit [7-8] 38.9

a) % Profit on Sales = (38.9 /292.32)*100

=13.10%
b) % Profit on Capital Investment = (38.9/167.6)*100
23%
c) Break Even Analysis

Annual Fixed Cost

1 Land & Building 72,00,000

2 Depreciation 15,08,000
3 Interest 1130000
4 40% on staff & labor 1161600
5 40% of utilities 758400
Total Annual Fixed Cost 11758000

Break Even Point

B.E.P= (Annual Fixed Cost*100) / (Annual Fixed Cost + Annual Profit)
= (11,758,000*100) / (11758000+ 3890000)
= 75.14%

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 Fig.1 showing Break even analysis graph

D. SUPPLEMENTARY DETAILS

D.1 Do you own House/Property etc.?

-Yes
D.2 Own Insurance policy?
-Yes
D.3 Any interest in other firms?
-No
D.4 Do you belong to SC/ST/OBC/ General?
-General
D.5 Present monthly income?
-Rs Nil

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REFERENCES

Sl.No. Name Address Occupation

1 Bidyadhar Pradhan BBSR Engineer
2 Saroj Prasad Dash Anata Entrepreneur
Vihar,TalcherAngul

Date:02/04/2015
Place:Talcher

Signature

Annexure – Key components of market survey

Introduction

Metallurgical Cokes are hard coke used in blast furnace for producing pig iron and in
cupolas for the production of grey iron castings. Integrated Steel Plants have their own
Coke oven battery in the premises to produce better quality of Metallurgical coke. Cokes
used in Cupola are of inferior quality in comparison to coke used in the blast furnace.
Due to some inherent characteristics like hardness, porosity, and abrasive strength,
(Metallurgical cokes are being used in these furnaces. Metallurgical coke is produced by
Carbonisation (heating of pulverised coking coal in absence of air) of coking coal i.e.
bituminous coal in coke oven battery. Due to shortage of cooking coal in our country,
now a days coke is also being produced by blending of coking coal, Non–coking and
some additives.

Market Potential
There are a good number of units in small scale sector engaged in producing grey iron
casting, graded cast iron castings and Malleable iron casting by melting the charge in
Cupola furnace. Metallurgical coke is one of the main ingredients of the charge used for
melting in cupola furnace as it acts as a reducing agent and also fuel for melting the
charge hence metallurgical coke has got good market potential. In mini blast furnace and
mini cupola furnace, inferior quality of metallurgical coke can also be used. Keeping in
view the good concentration of foundries for casting grey iron and Malleable iron, it can

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be said that Metallurgical coke manufacturing unit has wide scope in the small scale
sector.

2000
1800
1600
1400
1200 demands per annum in MT
1000
800 supply per annum in MT
600
400
200
0
2012-13 2013-14 2014-15 2015-16 2016-17

Fig- Graph showing demand – supply graph for metallurgical coke from 2012-17 in
Talcher ,Angul districts.

Manufacturing Process
Bituminous coal is pulverized by ball mill into fine powder.
Fine coal is heated in coke oven battery at 700–900OC in absence of air. This process is
called Carbonisation. Soaking at this temperature for about 7–8 hrs. It is allowed to cool
in the furnace. Due to coking property of bituminous coal powdered coal converts into
lump size and becomes very hard and highly porous.
After cooling, the coke produced is crushed into desired size. Strength of the coke, fixed
Carbon, sulphur content and ash content is determined in the testing laboratory for
justifying the quality of the coke.
By-products like tar may also be collected during carbonisation process
Marketing Procedures
To market the finished products a group of dealers has to be contacted first and they have
to be taken into confidence. Since this is a miniature venture a lot of capital cannot be set
aside for publicity of the product. But gradually when the product becomes well known
over the years & demand increases then capacity expansion would be done. But at
present to cater the needs of the local market 1550 MT would be produced. Some
advertisements would be coming up in the newspapers regarding the product. Also a few
number of flex would be printed and put on advertisement boards on appropriate
locations so that they easily arrest the attention of the people. A few number of potential
dealers have been shortlisted to help in selling the product in the market. They are as
follows:
1-Suppliers of Scrap
M/s. Bharat Coking Coal Ltd.
Local Marketing Division.
2-Pradhan enterprise,South Balanda.

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As of now there would be no special services for anyone because of the nature of the
project. But in the near future there would be capacity expansion because of the increase
in demand for this product.

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