PROJECT PROFILE
PRODUCT: ALLUMINIUM PRESSURE DIE CASTING
QUALITY STANDARD: AS PER MARKET DEMAND.
PRODUCTION CAPACITY
(PER ANNUM):
1. 91 MT. aluminium alloy pressure die cast components @ Rs. 2,05,000 per MT. 1,86,55,000
2. Aluminium alloy scrap 0.30 tons @ 80,000 per MT. 24,000 1,86,79,000
MONTH AND YEAR
OF PREPARATION: JULY - 2008
PREPARED BY:
MSME DEVELOPMENT INSTITUTE GOVT OF INDIA, MINISTRY OF MSME VIKAS SADAN, COLLEGE SQUARE CUTTACK-753003, ORISSA TEL. 2648049, 2648077 FAX: 0671-2332307
PREPARED FOR: M/S.CREATIVE FUNCTIONAL ART 257,PARIDA SAHI , AT/PO-CHOUDWAR ,DIST-CUTTACK
Introduction
Though tremendous technological advancements in the mental casting industry have taken place in recent years ,the foundry industry faces increasing demands to achieve higher productivity at minimum cost, even while producing high quality cast components of intricate shapes. By proper selection of a casting technique with careful foundry and metallurgical controls, castings of high quality are being commercially manufactured. Amongst a large number of foundry techniques one is low and high pressure die-casting .It has been developed and industrially employed to produce casting of near-net shape components. The near net shape cast parts are famous for their fine details, good surface conditions, complex shapes and economy. Under the present scenario of industrial development, metal casting has moved from an art and craft industry to the industry based on science and technology.The pressure die casting manufacturing processes have been systematically developed so that structure may be controlled and quality may be assured.Die casting provides the foundry man with one of the fastest means of producing casting with a much higher degree of accuracy than that normally obtained by conventional sand casting .In fact, this method is unexcelled for mass production work as numerous castings can be made to very close tolerances and with a fine surface finish. Pressure die casting in aluminium alloy offers means for very rapid production of engineering and other related components even or intricate design. The technique has obvious advantages when a component is required in large quantities. However, for engineering components such as those requied for aeronautic space, defence and automotive applications, mechanical properties and durability are of primary importance. It is therefore essential that the best features of design should be employed and optimum casting casting technique with minimum cost be adopted. Pressure die cast products are used in the form of components of various electrical, electronic, mechanical instruments and appliances used in domestic as well as industrial fields.
Market Potential
The popularity of pressure die cast alumuinium alloy components arises from the following advantages it offers as compared to other methods of castings : • High productivity • Good as cast surface finish and appearance. • Compact casting - sound strength. • Do not require further machining. • Can be cast within close dimensional tolerance. • Very thin section, can be cast with ease. • Metal wastage in the casting is low. • Rejection due to casting defects is low.
Demand mainly arises from the sources like defence, Telephone industry, Automobile component and fittings, Electrical appliances, Electronic components, Builders hardwares and fitting etc. Demand in these areas again depends upon the primary market, replacement market and substitution market.
The primary market is expected to continue as the leading market and with the trend of demand growth to cater to the requirement of more and more new industries coming up in the above areas of consumption. The replacement market is also likely to expand with more marketability of new products.
These are very few units in the small scale sector producing pressure die cast components. Hence there is good scope for setting up this industry.
BASIS AND PRESUMPTION:
1. The scheme has been prepared on the basis of 75% efficiency on single shift basis of 8 hours duration considering 25 working days in a month and a total of 300 working days in a year. 2. The break even point in the scheme has been calculated on the 80% capacity utilization basis. 3. The rates quoted in respect of salaries and wages for workers and others are the minimum rates in the state/neighboring states. 4. 12% rate of interest has been considered on total capital investment. 5. The cost of machinery and equipment as indicated are approximate which are ruling locally at the time of preparation of the scheme. When a tailor cut project is prepared, necessary changes are to be made. 6. Margin money required is minimum 30% of projected investment i.e. Rs.16.75 lakhs. However, it may differ from project to project and type of entrepreneurs such as women, SC/ST, Physically Handicapped etc. 7. Pay back period of the project after the initial gestation period of one and half years it will require approximately 5 years to pay back the loans. 8. Profile life is estimated to be 10 years. The project should be reviewed every 3 to 4 years for modernization of the plant and machinery, technology etc. so that its life is prolonged.
IMPLEMENTATION SCHEDULE:
1. Preparation of project profile and regn.with DIC 1 month
2. Availability of finance 3 months
3. Selection of site 1 month
4. Procurement of machinery and installation 1 month
5. Procurement of raw material and recruitment 1 month
6. Trial run 1 month 8 months
TECHNICAL ASPECTS:
Process:
Because of its high melting point, aluminium silicon alloy is die cast in cold chamber pressure die casting machine. In pressure die casting the molten metal is introduced under pressure into a metallic die and allowed to solidify to produce near-net-shapes. Two types of die casting machines known as cold chamber and hot chamber are usually used. The production rate depends on casting thickness, specified properties of the cast metal and the complexity of the cast shape. This technique produces castings of very good surface finish with high dimensional accuracy. The process provides high yield due to absence of riser and feeding system. Production rate is high and the casting generates more metallurgical intergrity. Finer grains and absence of porosity make the casting mechanically compact. Casting size, weight, design and melting point of cast metal limit the use of the process. Cost of die confines the process only to relatively small parts.
The cold chamber machine is used for the alloy which has higher melting point than the zinc-alloy. Higher pressure is applied, so lower molten metal feeding temperature is used. Casting traps lesser amount of air as compared to the air trapped in hot chamber machine. In pressure die casting, die temperature, molten metal pouring temperature, injection pressure and spped are optimized for a special casting.
Metal for a single shot is loaded into a cylindrical chamber through a pouring aperture. A piston then forces the metal into the die, the entire operation being completed in a few seconds, so that iron contamination is virtually eliminated. Using this technique much higher injection pressure in the range of 70 – 140 Mpa is feasible, enabling lower metal to be employed and greater intricacy achieved. The castings are less prone to entrapped air and a higher standard of soundness ensures from the small amount of liquid and solidification shrinkage occurring within the die.
In cold chamber operations the molten metal is usually maintained at constant temperature in an adjacent holding furnace, where transfer of successive shots to the machine chambers can be accomplished manually. Holding furnaces may be electrically heated types or the one using immersion heating types or the one using immersion heating device, which has a close control over the molten metal.
• The molten metal should be thoroughly degased by chlorine gas or hexachloroethane followed by modification with suitable modifier. For thinner sections the working temperature of the molten metal should be 680° C to 690° C and for thicker sections this should be between 650° C to 680°C. • The die temperature should be maintained so that castings of good quality are produced. • The die cast components are subjected to fetting operation for removal of getting system and fins, if any.
Quality Control and Standards:
Alloys suitable for pressure die casting and their chemical composition are given below. Alloys 4420 or LM-24 M, 4520 or LM-2M , 4600 or LM-20 M are widely used alloys for general engineering work and are suitable for pressure die- casting. These alloys have excellent fluidity good corrosion resistance, medium strength and can be cast in intricate shapes. The die cast component should be free from blowholes and pinholes porosity, shrinkage, cold shut etc. They should be free from dimensional inaccuracies. No patching or welding shall be allowed to cancel or rectify any defects.
Motive power : ( per month )
Total motive power requirement = 4500 KW.
POLLUTION CONTROL:
The industry does not create extensive pollution hazard. The workshop should be well ventilated, properly lighted and fitted with exhaust fans.
ENERGY CONSERVATION:
There is little scope for energy conservation in this industry except in the melting practice where the furnace should be properly insulated to reduce radiation loss and should be fitted with automatic pyrometric control to maintain the furnace at the proper temperature.
FINANCIAL ASPECTS:
Land: 1 acre purchase Rs. 2,00,000
Working shed : 10,000 sq.ft. @ 350/sq.ft. Rs. 35,00,000
Office cum store 5,000 sq.ft.@ 500/sq.ft. Rs. 25,00,000
Labour shed 2,000 sq.ft. @ 350/sq.ft. Rs. 7,00,000
Watchman shed & cycle stand 2,000 sq.ft.@ 350/sq.ft. Rs. 7,00,000
Open space for parking 5,000 sq.ft.
Boundary with boring LS Rs. 2,00,000
Rest space - Future expansion Rs.78,00,000
Plant and machinery:
|S.no. |Specification |Qty. |Value |
|1. |Horizontal cold chamber pressure die casting machine with control |one | 13,00,000 |
| |panel of 60 ton capacity with 7.5 HP motor | | |
|2. |Electrical resistance furnace for melting aluminium 100 kg. capacity |one | 1,00,000 |
|3. |Centre lathe 900 mm heavy duty with 3 HP motor and accessories |one | 40,000 |
|4. |Shaping machine 600 mm stroke with 3 HP motor and accessories |one | 50,000 |
| |( Cone Pully drive all geared ) | | |
|5. |Pillar drilling machine complete with 1 HP motor |one | 70,000 |
|6. |Bench grinder double ended with 1 HP. Motor |one | 20,000 |
|7. |Pedestal grinder with 2 HP. Motor |one | 30,000 |
|8. |Timming machine ( bell press ) |three | 30,000 |
|9. |Vice, tables, fixtures, measuring instruments, gauges etc. | LS | 75,000 |
|10. |Testing equipments laboratory comprising chemical testing and physical| LS | 1,50,000 |
| |testing | | |
|11. |Diesel Generation set 125 KW cap. with standard accessories |one | 1,25,000 |
|12. |Electrification and installation @ 10% | | 1,99,000 |
| | | Total | 21,89,000 |
|13. |Cost of moulds and fixtures | LS | 1,50,000 |
|14. |Office equipment, furniture, type writer, fan etc. | LS | 50,000 |
| | | Total | 23,89,000 |
Pre-operative exp.
Legal expenses, establishment cost, traveling, start up
Expenses, consultancy fee, estimate fee, interest during construction, trial run expenses etc. LS 1,00,000 Total 24,89,000
Fixed capital Investment: = 78,00,000 + 24,89,000 = 1,02,89,000
Working capital analysis:
Raw material P.M.
Aluminium alloy ingot 10 MT. @ 110/kg. Rs.11,00,000/-
Staff and labour P.M.
Works Manager one 6,000
Sales executive one 5,000
Supervisor one 3,000
Chemist one 3,000
Store keeper cum accountant one 2,500
Steno cum typist one 3,000
Maintenance fitter one 2,500
Skilled worker three 7,500
Semi skilled worker three 6,000
Unskilled worker four 7,200
Peon cum watchman two 4,000 49,700
Utility:
Electricity power 4500 KWH @ 3.50 15,750
Water 250 16,000
Other expenditure:
Travel and transport 5,000
Telephone 1,000
Advertisement & publicity 5,000
Sale tips 2,300
Maintenance 10,000
Stationery 2,000 25,300
Total Working capital per month:
= 11,00,000 + 49,700 + 16,000 + 25,300 = 11,91,000/-
Total Capital Investment:
Fixed capital investment 1,02,89,000
Working capital for two months 23,82,000 1,26,71,000
Cost of production (Per annum):
Depreciation on shed @ 5% 3,80,000
Depreciation on machinery @ 10% 1,99,000
Depreciation on furniture @ 20% 10,000
Total working capital per annum 1,42,92,000
Interest on total capital invt. @ 12% 15,20,520 1,64,01,520
Annual turnover:
1. 91 MT. aluminium alloy pressure die cast components @ Rs. 2,05,000 per MT. 1,86,55,000
2. Aluminium alloy scrap 0.30 tons @ 80,000 per MT. 24,000 1,86,79,000
Profit (Per annum)
= 1,86,79,000 – 1,64,01,520 = 22,77,480/-
Net profit ratio:
Profit x 100 = 12.1%
Turnover
Rate of return:
Profit x 100 = 18%
Investment
Break even analysis:
Total depreciation 5,89,000
Interest @ 12% 15,20,520
40% salary 2,38,560
40% other exp. 1,21,440 24,69,520
B.E.P. = FC x 100 = 52% FC + profit
ADDRESSES OF MACHINERY:
• M/S. HMT Ltd, 31 , Chowringhee Road, Kolkata- 700071 • M/s. Indo Japanese Proto Type Training Centre, Baltikuri, Dasnagar, Howrah, Kolkata. • M/s. Hindustan Machine Tools Jeevan Tara Building, Parliament street, New Delhi- 110001 • M/s. Wesman Engineering Co.(P) ltd. B-99 , Mayapuri indl. Area, New Delhi. • M/s. Batliboy and Co. Ltd. Jeevan Vihar, Parliament street, New Delhi- 110001. 