CALCIUM SULPHATE (PLASTER OF PARIS) CONTENTS SECTION
I
PRODUCT CHARACTERISTICS AND SPECIFICATION
SECTION
II
PRODUCT APPLICATIONS
SECTION
III
INDIAN MANUFACTURERS
SECTION
IV
IMPORT/EXPORT LEVEL
SECTION
V
PRICE TRENDS
SECTION
VI
INDIAN DEMAND
SECTION
VII
BROAD OUTLINE OF MANUFACTURING PROCESS
SECTION
VIII
RAW MATERIAL REQUIREMENTS, UTILITY 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
1
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SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION 1.1.
General details
Alternate name
Dried Calcium Sulphate, Dried Gypsum, Calcium Sulphate hemihydrate Fine, odourless, tasteless powder. Alpha and Beta CaSO4 1/2H2O 145.15 163(-1/2 H2O) Deg.C 0.30
Appearance Grades Molecular formula Molecular weight Melting point Solubility in 100 g water at 25 Deg.C, g
When the product is mixed with water, it sets to a hard mass. Upon setting, it expands slightly and this property is used to reproduce the finest details Size reduction up to 1 µm is done in certain dental and jewellery castings. 1.2.
Types
* *
α (Alpha) type β (Beta) type
Characteristics of Alpha type
Alpha type is distinguishable from Beta in that its particles disintegrate very little when mixed with water. It requires far less mixing water to form a workable slurry. Consequently, Alpha has the ability to produce denser and higher compressive strength casts with less excess water, beyond that required for recrystallisation.
2
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Characteristics of Beta type
Beta type without additives is not suitable for plastering because the initial setting occurs too late and the final setting too early. Also, its particle size distribution is not suitable for plaster.
1.3.
Physical and chemical properties
Molecular formula Composition
CaSO4 0.5 H2O Lime (CaO) 38.6 Sulphur trioxide (SO3) 55.2 Combined water (H2O) 6.2 145.15 163 0.30 1.0% max More than 97% 40:100 to 50:100 About 2 minutes 33 to 38 water per 100 gm product
Molecular weight Melting point, deg.C Solubility in 100g water at 25 deg.C, g Residue on 120 mesh Hemihydrate content Water: Plaster ratio (g/100g) Blending time Water consistency Setting time (I) initial (II) Final Compressive strength Tensile strength Bulk density Modulus of rupture
6 to 15 mts 16 to 40 mts. 350 to 466 kg/cm2 27 to 36 kg/cm2 1.36 to 1.52 kg/cm2 97 to 150 kg/cm2
3
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SECTION II PRODUCT APPLICATIONS 2.1.
Application Sector
Application Sector
•
Ceramic industry
•
Making decorative mouldings and building interior features
•
Hospitals and Dental laboratories-Pharmaceutical grade
2.1.1. Ceramic industry Used by the ceramic industry in the production of dishes, sanitary ware, art ware, stone ware and related products. Mixture of Alpha and Beta plaster is the favoured moulding plaster especially for ceramics. Plaster of paris is used in the ceramic industry for three related purposes. * Model making: This requires a dense uniform plaster of paris which can be readily carved. *
Making moulds for pressing and jiggering shapes in plastic clay.
*
Making moulds for slip casting ware
* In the manufacture of chemical porcelein:- Chemical porcelain is a white vitrified dense transparent, body with or without glaze. *
In the manufacture of electrical insulators and low tension porcelain insulators
*
In the manufacture of sanitary wares:-
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2.1.2. Decorative mouldings and building interior features:In decorative mouldings:-Art plasters are essentially moulding plasters used in making decorative mouldings modified to increase surface hardness, chip resistance and reduce paint absorption of casts made from this material. In building interior features:-Moulding plasters are used to form columns and other building interior features. In manufacturer of chalk crayons:-Chalk crayons are round and tapered shape sticks of different colours made of plaster of paris. They are extensively used for writing on black boards and markings on any coloured surface. 2.1.3. Hospitals and Dental laboratories-pharmaceutical grade Orthopedic plasters are used by hospitals and clinics for all types of orthopedic cast work such as surgical caste, orthopedic bandages etc. Both Alpha and Beta plasters are used in dental laboratories.
5
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SECTION III INDIAN MANUFACTURERS There are reported to be around 300 producers of Plaster of Paris in the country. Most of the units are in the unorganised and cottage sector, producing low grade product, essentially meeting the local requirements. 3.1
Important producers
Important producers include the following : •
Ashok Industries, 218. PSK Road, Rajapalayam.
*
Allum and Allied Chemicals Pvt.Ltd., A-1, The Sakthi Co-op. Industrial Estate, Pollachi 642 003.
*
Dr.Sabharwal's Mfg. Labs. Ltd. Regd. Office : 117/H-2/160, Pandu Nagar Kanpur-208 005
*
Hindustan Sanitaryware & Industries Ltd. Factory : Ceramix Division : 1, Bahadurgarh-124 507 Dist. Jhajjar, Haryana
*
Lakshmi Industries A3, Shankar Flats, 46, Butterworth Road, Trichy-620 002
*
Neelkanth Minechem E-63, RIICO Ind. Area, Boranada 342001 Jodhpur Rajasthan
*
Sri Balamurugan Chemicals 157, Cotton Market, Rajapalayam-626 117
6
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*
The Ramaraju Surgical Cotton Mills Ltd., R.S.C.M. Premises, Post Box No.2, P.A.C. Ramasamy Raja Salai, Rajapalaiyam-626 117 Factories at Rajapalaiyam and Perumalpatti
3.2.
Other producers in the unorganised and cottage sector.
A number of producers in the unorganised sector essentially supply the product to local regions and some of them have intermittent operations. Such producers include the following: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • `
ABC Products Ltd., Cochin Acid Sales Corpn., Bombay’ Agarwal Pharma, New Delhi Allied Potteries,. Gujarat Alpine Industries, New Delhi Andhra Oil and Cake Products Ltd., Vizianagaram Anishkumar & Co., Bombay Anup Potteries, Gujarat Ashapura Mine Chem P.Ltd., Bombay Asiatic Minerals, Bombay Associated Commercial Inds., Salem Associated Pigments Ltd., Calcutta Aurumugam Thagar Sons, Ghaziabad Badwasi Gypsums, Rajasthan Beegee Corpn. P.Ltd., Punjab Bengal Potteries Ltd., Calcutta Bharat Grinders, Calcutta Bianer Gypsums ltd., Bikaner Birkmyre Export Co. Ltd., Calcutta Bombay Pottories & Tiles Ltd., Mumbai Brilex Chemicals, Bombay Calcutta Mineral Supply Co. P.Ltd., Calcutta Calcutta Mineras Co. Pvt.ltd., Calcutta Central Potteries Ltd., Nagpur Ceramic Services Ltd., Haryana Chalakudy Potteries Ltd., Kerala Charminar Pottery Works, Secunderabad Chem Co. Drilling Fluid (Bombay) P.Ltd., Bombay Chotanagpur Clay & Minerals, Calcutta 7 D.I.Corporation Rajasthan
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • `
Dawson India Corpn., Rajasthan Dayal Pottery Works, Delhi Dental Products of India Ltd., Bombay Digvijay Potteries & Tiles Ltd., Gujarat Dr.Paul Lahamann (I) Ltd., Calcutta Durga Enterprises P.Ltd., Meerut Earth Field Products, Bombay Engser India P.Ltd., Calcutta Everest Pottery Works, Gujarat Firebricks & Potteries P.Ltd., Bangalore Ganesh Plaster Industries, Pudukottai Gem Plaster Industries, Tuticorin General Pigments & Chemical Products Pvt.Ltd., Bombay Gimpex Pvt.Ltd., TamilNadu Glass & Foundry Sand, Allahabad Globe Pottories, Gujarat Glowchem, Delhi Govt. Poreclain Factory, Bangalore Gujarat Pottery Works Ltd., Gujarat Gujarat State Fertilizers Co. Ltd., Vadodara Gwalior Potteries (Delhi) Ltd., Delhi Gypstone Industries, Hardwar Haldyn Industries Pvt.Ltd., Bombay Heni Chemicals Industries, Bombay Hiamayala Stone Lime Co., U.P. Himachal Pradesh State Forest Corpn. Ltd.,Simla Hindustan Produce Co., Calcutta Hindustan Salts Ltd., Jaipur Hitkari Potteries Pvt.Ltd., Delhbi Hyderabad Potteries Ltd., Secunderabad Imkemex India Ltd., Calcutta Indian Minerals and Associated Inds., Calcutta Indian Potteries Ltd., Calcutta Industrial Chemical Industries, Bombay Industrial Minerals and Mill Stroes Trades Ltd., Calcutta Industrial Stand Supply Co., Bombay IVP Ltd., Bombay J.L.Marrisons, Bombay Jayakumar Cottage Industries, Coimbatore Jharia Firebricks & Pottery Works Ltd., Dhanbad Johnson & Johnson Ltd., Bombay Kashimira Ceramic Products P.Ltd., Bombay Kathiawar Inds. Ltd., Rajasthan Kedshavgiri Chem Industries 8
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • `
Krishna Traders, Calcutta Lakshmi Industries, Trichy Lloyd Pharma Co., New Delhi Madras Gypsum Mining Works P.Ltd., Chennai Mag Hard Insulators, Bombay Mahavir Refractories Corpn., Bombay Makim med Aids, Baroda Medicure Labs, Satna, Uttar Pradesh Midnapore Minerals P.Ltd., Calcutta MuhanaCo., Maharashtra MVA Arumuga Perumal & Sons, Rajapalayam Natraj Chemicals, Bihar Nembie Chem & Surgicals, New Delhi New Bharat Refractories, Howrah Oriental Minerals, Bombay Orthofix India Ltd., Rajapalayam Palam Potteries, Delhi Pande Industries (I), Karnataka Pandia Chemicals, Chennai Parshwram Pottery Works Co. Ltd., Gujarat Pelican Ceramic Inds., Delhi Peninsular Mineral Corpn., Bombay Perfect Pottery Co., Jabalpur Premier Refractories of India Pvt.Ltd., Bombay Raj Impex India, TamilNadu Ramgarh Refractories Works Ltd., Calcutta Ramnarain & Brothers, Rajasthan Ranbaxy Labs Ltd., Delhi Raveshia Chemicals, Shradhana Refractory & Mineral India, Bombay Royal Industries, Madurai Satyaraj & Co., Rajasthan Savera Chemicals, Andhra Pradesh Skylark International, Calcutta Sri Meenakshi Salt Works Ltd., Tuticorin Sri Venkateswara Products, Rajapalayam Srinivasa Plasters (P) Ltd., Andhra Pradesh Standard Organic Chemical Industry, Ghaziabad Starke & Co., Delhi Studio Pottories, Gujarat Subhash Trading Co., New Delhi Sunrise Pottery Works, Gujarat Super Pharma (I), Haryana Kanpur Swadeshi Chemical Industry, 9
• • • • •
Tata Chemicals Ltd., Mumbai Tuticorin Salt & Marine Chemicals Ltd., Tuticorin Universal Minerals & Chemicals Co., Bombay Universal Plaster Industries, New Delhi Venkateswara Flour Mills, Salem
3.3.
Installed Capacity Estimated Indian Installed Capacity
1,80,000 tonnes per annum
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SECTION IV IMPORT/EXPORT LEVEL 4.1.
Imports
4.1.1. Plaster of Paris (Surgical Grade) Annual Import
25000
21275
Quantity in Kg.
20000
15000 9598 10000 5000 812 0
April 1999 to March 2000
April 2000 to March 2001
Year
11
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April 2001 to March 2002
4.1.2. Plasters Calcined Plaster Annual Import
4943510
5000000 4500000
Quantity in Kg.
4000000 3500000 3000000 2500000
2208625
2000000
1395484
1500000 1000000 500000 0
April 1999 to March 2000
April 2000 to March 2001
Year
12
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April 2001 to March 2002
4.1.3. Sample of Individual Imports (not exhaustive) PERIOD 2002 Name of the Importer
Quantity in tonnes 16 Kgs.
Value in Rs.
Country
Period
Port
5200
UK
March 2002
Chennai
4.731
330246
of
3000 Rol
81969.94
Colombo
24.4.2002 to Mumbai 30.4.2002 June 2002 Chennai
of
1920 Roll
31476.34
Colombo
June 2002
Chennai
of
80 Rol
1311.52
Colombo
June 2002
Chennai
of
30000 Rol
548437.50
Colombo
June 2002
Chennai
of
4000 Rol
110819.35
Colombo
June 2002
Chennai
of
1000 Rol
18487.65
Colombo
June 2002
Chennai
of
2000 Rol
33245.80
Colombo
June 2002
Chennai
KSR Tessie (Statue of the lady of the poor made of Plaster of Paris)
C.G.International Pvt.Ltd.
Birla 3M Ltd., (Plaster Paris Bandage BP) Birla 3M Ltd., (Plaster Paris Bandage BP) Birla 3M Ltd., (Plaster Paris Bandage BP) Birla 3M Ltd., (Plaster Paris Bandage BP) Birla 3M Ltd., (Plaster Paris Bandage BP) Birla 3M Ltd., (Plaster Paris Bandage BP) Birla 3M Ltd., (Plaster Paris Bandage BP)
13
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U.S.
4.2.
Exports
4.2.1. Plaster of Paris (Surgical) Annual Exports 300000
258232
Quantity in Kg.
250000 200000
185414
150000 93601 100000 50000 0
April 1999 to March 2000
April 2000 to March 2001
Year
14
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April 2001 to March 2002
4.2.2.
Plasters Calcined Plaster
Annual Exports 4211830
4500000 4000000
Quantity in Kg.
3500000 3000000 2500000 2000000 1500000 1000000 500000 0
266075
April 1999 to March 2000
April 2000 to March 2001
Year 7
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4.2.3. Sample of Individual Export Details (not exhuastive) PERIOD 2002 Name of the Exporter Patel Manufacturing Co. Birla 3M Ltd., (Plaster of Paris Bandage BP10CMX) Birla 3M Ltd., (Plaster of Paris Bandage BP15CMX) Birla 3M Ltd., (Plaster of Paris Bandage BP) Birla 3M Ltd., (Plaster of Paris Bandage BP) Birla 3M Ltd., (Plaster of Paris Bandage BP) Birla 3M Ltd., (Plaster of Paris Bandage BP) Birla 3M Ltd., (Plaster of Paris Bandage BP) Birla 3M Ltd., (Plaster of Paris Bandage BP.88) Kumaran Silks Exports (Mannequins,made of Plaster of Paris) Kumaran Silks Exports (Mannequins,made of Plaster of Paris) Zain Enterprises (Plaster of Paris-Happy Man) Birla 3M Ltd., (Plaster of Paris Bandage BP.88) Birla 3M Ltd., (Plaster of Paris Bandage BP.88) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris)
Quantity in tonnes
Value in Rs.
Country
0.770
1469
Port Louis
1128 Nos.
204038.20
Colombo
300 Nos.
81320
Colombo
February 2002
Chennai
696 Box
187861.09
Colombo
March 2002
Chennai
4 Box
1079.66
Colombo
March 2002
Chennai
468 Box
84294.58
Colombo
March 2002
Chennai
4 Box
720.48
Colombo
March 2002
Chennai
50000 Rol
1414504.25
Colombo
April 2002
Chennai
70000 Rol
1997384
Colombo
July 2002
Chennai
19.00 Pcs.
107644.30
Toronto
July 2002
Chennai
1.00 Pcs.
5563.29
Toronto
July 2002
Chennai
10 Pcs.
487.50
August 2002 Chennai
10000 Rol
185755
Poet Kelang Colombo
54000 Rol
1522541.50
Colombo
1 No.
2591.16
Port Kelang
September 2002 September 2002 October 2002
2 Nos.
1919.38
Port Kelang
October 2002
Chennai
1 No.
911.71
Port Kelang
October 2002
Chennai
16
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Period
Port
17.1.2002 to Mumbai 31.1.2002 February Chennai 2002
Chennai Chennai Chennai
Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris)
2 Nos.
1199.61
Port Kelang
October 2002
Chennai
2 Nos.
767.75
Port Kelang
October 2002
Chennai
2 Nos.
575.81
Port Kelang
October 2002
Chennai
2 Nos.
671.78
Port Kelang
October 2002
Chennai
2 Nos.
767.75
Port Kelang
October 2002
Chennai
1 No.
671.78
Port Kelang
October 2002
Chennai
2 Nos.
527.83
Port Kelang
October 2002
Chennai
2 Nos.
911.71
Port Kelang
October 2002
Chennai
1 No.
599.81
Port Kelang
October 2002
Chennai
1 No.
671.78
Port Kelang
October 2002
Chennai
1 No.
383.88
Port Kelang
October 2002
Chennai
1 No.
527.83
Port Kelang
October 2002
Chennai
1 No.
527.83
Port Kelang
October 2002
Chennai
1 No.
263.91
Port Kelang
October 2002
Chennai
1 No.
455.85
Port Kelang
October 2002
Chennai
2 Nos.
575.81
Port Kelang
October 2002
Chennai
17
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Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Indian Art Emporium (Handicraft items Plaster of Paris) Birla 3M Ltd. (Plaster of Paris BP 88)
4 Nos. 1 No.
1007.67 719.76
October 2002
Chennai
Port Kelang
October 2002
Chennai
1 No.
767.75
Port Kelang
October 2002
Chennai
1 NO.
191.93
Port Kelang
October 2002
Chennai
1 No.
671.78
Port Kelang
October 2002
Chennai
1 No.
623.30
Port Kelang
October 2002
Chennai
1 No.
1199.61
Port Kelang
October 2002
Chennai
1 No.
719.76
Port Kelang
October 2002
Chennai
1 No.
1343.56
Port Kelang
October 2002
Chennai
30000 Rol
844857.50
Colombo
October 2002
Chennai
18
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Port Kelang
SECTION V PRICE TRENDS Basic price
Rs.47 per kg
Taxes and duties
Extra at actuals
19
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SECTION VI INDIAN DEMAND The demand is assessed in the following sector • • • • •
•
Sanitaryware Electrical insulators Crockery items including ceramic artware, table wares and allied items Surgical bandages Plaster boards Miscellaneous such as chalk crayons, sculptures, jewellery and dental impressions, statues and toys, paint, in mouldings and casting process of non ferrous alloys.
Consolidated Statement of Demand - Period 2002 Sector Sanitary ware Electrical insulators Surgical bandages Ceramic artware & toys Plaster boards Miscellaneous applications TOTAL
Demand In tonnes per annum 12500 6250 1000 3225 125000 15000 162975
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Pattern of Demand Sanitary ware 7.7%
Miscellaneous applications 9.2%
Electrical insulators Ceramic artware3.8% & toys 2.0% Surgical bandages 0.6%
Plaster boards 76.7%
Growth rate in demand The growth in demand for Plaster of Paris in various sector would be largely in tune with the industrial and economic growth rate in the country Application
Estimated Annual growth rate in percentage 12 7 10 10 12 7
Sanitary ware Electrical insulators Surgical bandages Ceramic artware & toys Plaster boards Miscellaneous applications
21
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SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS Washed marine gypsum is pulverised to 200 I.S. mesh. The pulverised gypsum is fed to reactor where water is added to make slurry. Sodium maleate is added as a crystal modifier. The reaction is carried out under pressure at 40 psig for one hour under agitation. The slurry is filtered hot using vacuum filtration. The cake is washed with boiling hot water. The hot cake is transferred to dryer immediately in hot trays and dried at 120-130 deg.C. The dried product is sieved through 100 I.S. mesh and packed in bags. Source of technology
*
Central Glass & Ceramic Research Institute, (Council of Scientific & Industrial Research) 196 Raja S.C. Mullick Road, P.O. Jadavpur University, Calcutta-700 032.
22
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Major plant and machinery suppliers Name of the equipment
Name of the supplier
Screw conveyor
Chem Eng. Consultant Shalin, Near Sanjivani Hospital New Sharda Mandir Road, Paldi, Ahmedabad-380 007 Deccan Mechanical and Chemical Inds. Ltd., Flat No.4, A-Wing, 7th Floor, Parsn Manere 602, Mound Road, Chennai-600 006
Micro pulveriser
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
Reactor
Hot filtration and crushing unit with pump Dryer
Chemitherm Plants & Systems P. Ltd., 30, Anandha Street Alwarpet, Chennai-600 018 Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai-600 098, Tamil Nadu Fluid Control Equipment Teynampet Chennai Richard Engineering (Bombay) Pvt. Ltd. 42, IIF, Veerabadran Street Near Valluvar Kottam Nungambakkam, Chennai-600 034 Ganson Ltd. 645, Anna Salai, Chennai-600 006
23
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Boiler
Sri Ranga Industries SF, 739, Ramraj Nagar, Goldwins, Coimbatore-641 014 Firetech Boilers Pvt. Ltd. No.211, 2nd Cross, 38th Main, B.T.M. Layout 2nd Stage, Bangalore-68
24
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SECTION VIII RAW MATERIAL REQUIREMENTS AND AVAILABILITY Raw material requirements Basis: One tonne of Plaster of paris Gypsum Maleic anhydride Sodium hydroxide
14 00 kgs 1.35 kgs 1.5 kgs
Utility
Power Fuel
1300 units 120 litres
25
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Raw material availability – Gypsum
NATURAL GYPSUM PHOSPHO GYPSUM MARINE GYPSUM DRIED GYPSUM
GRADES
NATURAL GYPSUM
PHOSPHO GYPSUM
* HYDRATED SULPHATE OF CALCIUM * COLOURLESS OR WHITE OPAQUE MINERAL IN THE FORM OF MASSIVE LUMPS OR TRANSPARENT * 85 TO 90% PURITY OF CALCIUM SULPHATE * UNDESIRED MATERIAL DRAINED OUT FROM PHOSPHATIC FERTILISER
GENERATED FROM SEA WATER. IN THE COURSE OF MANUFACTURE OF SALT MARINE GYPSUM
DRIED GYPSUM
CaSO4.2H2O
CONTENT
89.79 to 92.62
ALSO KNOWN AS PLASTER OF PARIS/CALCIUM SULPHATE HEMIHYDRATE FORMS: FINE, ODOURLESS, TASTELESS POWDER
26
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Indian production level
Around 2.3 million tonnes per annum
Indian reserves of gypsum Total proven reserves of gypsum:
26 million tonnes
Gradewise reserves 70 60
IN PERCENTAGE
50 40 30 20
GRADE
27
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UNCLASSIFIED
SOIL RECLAMATION
CEMENT / PAINT
FERTILIZER / POTTERY
0
SURGICAL / PLASTER
10
Statewise reserves of Gypsum 80 70
IN PERCENTAGE
60 50 40 30 20 10 0
GUJARAT
JAMMU & KASHMIR STATE
28
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RAJASTHAN
TAMIL NADU
SECTION IX GLOBAL SCENARIO Total world production of gypsum: 100 million tonnes per annum
18 16
IN PERCENTAGE
14 12 10 8 6 4
COUNTRY
Total estimated production of Plaster of Paris for various grades Around 40 million tonnes per annum
Global growth rate in demand
Around 1 to 2% per annum
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OTHER COUNTRIES
USA
UNITED KINGDOM
THAILAND
SPAIN
POLAND
MEXICO
JAPAN
ITALY
IRAN
INDIA*
FRANCE
EGYPT
CHINA
CANADA
0
AUSTRILIA
2
SECTION X DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS Economic Capacity Project Cost
120 tonnes per annum :
Rs.69 lakhs
Assessment of project cost 1.
Land
S.No.
Description
Cost Rs.in lakhs
1.1 1.2
Cost of land of 0.5 acre at Rs.5.5 lakh per acre Cost of levelling, laying internal roads/fencing and compound wall Subtotal
2.75 0.28
2.
3.03
Building
S.No.
Description
Cost Rs.in lakhs
2.1
Factory building of area 150 sq.m. at Rs.3200/sq.m.
4.8
2.2
Non-factory building of area 50 sq.m.at Rs.4500/sq.m. Subtotal
2.25 7.05
3.
Cost of Plant & Machinery
S.No.
Description
Cost Rs.in lakhs
3.1 3.2 3.3 3.4
Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection Subtotal Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Installation charges (2%)
20 1.5 2.0 1.0 24.5 2.94 0.49 0.49 0.49 0.49 0.49
3.5 3.6 3.7 3.8 3.9 3.10
30
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Total cost of plant and Machinery 4.
Technical know-how fees
5.
Miscellaneous fixed assets
29.89 Rs.2 lakhs
S.No.
Description
Cost Rs.in lakhs
5.1. 5.2. 5.3. 5.4. 5.5. 5.6. 5.7.
Electrification Steam boiler and auxillaries Water storage tank, borewell etc. Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, weigh balance, etc. Diesel generator Effluent treatment Total
1.5 2.5 0.8 0.5 0.6 0.8 0.6
5.8. 5.9. 6.
4.4 1.5 13.2
Preliminary & Pre-operative expenses:
S.No.
Description
Cost Rs.in lakhs
6.1. 6.2. 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.6 6.2.7
Preliminary expenses Pre-operative expenses:Establishment Rent rates and taxes Travelling expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment Total
0.6 0.8 0.6 0.8 2 1.5 6.3
7.
Provision for contingency
Rs.3.85 lakhs
8.
Working capital margin
Rs.3.79 lakhs
9.
Total project cost
Rs.69 lakhs
10.
Means of finance (Rs. in lakhs)
Promoter's contribution Term loan from financing institutions
28 41 31
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Total project cost
11.
69
Financial statements
Cost of production A
Rs. in lakhs
Variable cost
Raw material and utilities Spares and maintenance Selling expenses Total variable cost (A)
B
12.83 1.79 2.82 17.44
Fixed cost
Salaries and wages Interest on term loan and working capital loan Depreciation Administrative expenses Total fixed cost (B)
6 9.51 4.3 1.69 21.50
C.
Total cost of production (A+B)
38.94
D.
Selling price per kg. (in Rupees)
47
E.
Annual sales turnover
56.4
F.
Net profit before tax (E-C)
17.46
G.
Breakeven point in %
55
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SECTION XI SWOT ANALYSIS Strength
Large availability of gypsum in the country
Weakness
Competitive conditions
Opportunity
Scope for improving product quality and specifications for newer applications
Threat
Absence of entry barrier and possibility of mushroom growth
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therefore
SECTION XII FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS Plaster of Paris units largely falls in the unorganised sector, with a large number of units being in the small and cottage sector. In view of the small size of most of the units, quality level of the product and shop floor practices in the industry have been largely of inadequate standards. Several consumers, especially those units looking for good quality products like electrical insulators, sanitaryware do not seem to be satisfied with a number of producers. In setting up Plaster of Paris units, high level of importance has to be given to this aspect of producing product at high quality standards. This obviously, implies that the Plaster of Paris plant should be of adequate size to introduce and implement optimum quality control measures and shop floorpractices. While the demand for the product is steadily going up, no section of the consuming industry has reported any difficulties in obtaining their requirement of Plaster of Paris, though inconsistency in the quality of the supply from several sources was mentioned. This again, only points to the fact that additional capacities for Plaster of Paris can be justified in a big way, from the point of view of quality requirements. The uses and applications of Plaster of Paris as well as the consuming industries have high level of relevance to the country’s industrial and economic growth pattern. While improvements in the quality and specifications of the product should continue to be made, there is no feasibility of Plaster of Paris becoming obsolete in the foreseable future. The demand for the product would continue to increase.
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