Project Report on Threading Drill Pipes

8/18/2019 Project Report on Threading Drill Pipes

1/34

DETAILED PROJECT REPORT

OFSS INDUSTRIES

Prepared By GSK & CO.,

Chartered Acc!"ta"t#


2/34

32

INDEX OF THE REPORT

$. CO%PAN INTRODUCTION AND E'ECUTI(E SU%%AR )*

+. KE %ANAGE%ENT PERSONELL

)

*. P(C PRODUCTS AND ITS PROCESS )-

. RA/%ATERLAS AND UTILITIES

$0

0. LAND AND SITE DE(ELOP%ENT LOCATIONS $

. PROJECT %EANS AND FINANCE $1

1. APPRO(ALS RE2UIRED $3

-. SC4EDULE OF I%PLE%ENTATION +)

3. FINANCIAL STATE%ENTS AND (IABILIT +$

$). PROJECT ECONO%IES +0

$$. S/OT ANALSIS

+-

$+. %ARKETING AND /ORKORDERS +3


3/34

32

$*. SUPPLIERS LIST *)

$. CONCLUSION *$

$.CO%PAN INTRODUTION AND T4E E'ECUTI(E SU%%AR

SS INDUSTRIES, is a partnership firm having registered under the partnership

act , n the date f !"th #pri$ !"%&, having its register ffice at F$at n , &th

F$r, 'harani ($assic #partments, Ha)eema*ad ($n+ , (hinta$a)unta , ' Nagar ,-

H+der*ad.

The (mpan+ is prmted *+ a team f Successfu$ *usiness entrepreneurs-

%- /r- Srinivas Redd+ 0eri)a$redd+

!- /r- Srinivasu$u Duggi

The prmters have vast e1perience in manufacturing, trading f a$$ t+pes

p$astic P2( pipes-

The (mpan+ is having manufacturing unit at p$t n 3" s+ n 45 f %!" s6

+ards f%7"" sft in pedda am*erpet vi$$age, RR Dist, 8hich is under the $ease

premises fr a perid f 3 +ears frm S #maravathi ,

The tta$ P$ant and machiner+ is divided int & units ne fr Dradied hse

pipes , 9arden tu*ing pipes, and ne fr dpe )rishi pipes -

The e1isting manufacturing unit is p$t n 3" s+ n 45 f %!" s6 +ards f%7"" sft in

pedda am*erpet vi$$age, RR Dist, , 8hich is under $eased premises fr a perid f 3

+ears , 8ith tta$ pr:ect ut$a+ f Rs %47-!4 a)hs, and in additin t this the


4/34

32

cmpan+ has a$s re6uested fr the 8r)ing capita$ $imits f Rs 4&-"" $a)hs and

Dmestic -( &"-"" a)hs-

Pr5ect C#t6

The tta$ estimated pr:ect cst f the prpsed manufacturing unit is

%47-!4a)hs and the detai$s are given in the ta*$e *e$8;

A. PROJECT COST

7R# 8" La9h#:

De#cr8pt8" A;!"t

%- P$ant < /achiner+ 152.26

!- E$ectrica$ E6uipment inc$uding transfrmer 3.00

5- (ivi$ =r)s 7.50

7- ID( 1.50

Tta< $.+

The current prpsa$ is fr the esta*$ishing a manufacturing unit at p$t n 3" s+

n 45 f %!" s6 +ards f%7"" sft in pedda am*erpet vi$$age, RR Dist, 8ith a tta$

*ui$t up area f %7"" sft > 8hich sha$$ inc$ude the /achiner+ erectin , =arehuse

fr ra8 materia$ and finished gds? and , the tta$ pr:ect cst is %47-!4 f 8hich

the cmpan+ has re6uested fr the term $an f Rs %5&-"" a)hs fr the

esta*$ishment f the unit 8hich sha$$ inc$ude the civi$ and the *ui$ding cst and the

purchase f the machiner+ as detai$ed in, the cmpan+ sha$$ infuse the remaining S

4&-"" a)hs fr the margin f e$ectricit+ and ther pr:ect essentia$s $i)e 8r)ing

capita$ margin and ther necessaries inc$uding the machiner+ -

OPPURTUNIT TO LOCAL S%ALL SCALE INDUSTRIES

The Teer";e"t ha# pr>8ded a;p


5/34

32

a"d the re?!"d ? the I"d8rect tae#, a# per the Te


6/34


7/34


8/34

32

* .P(C PRODUCTS AND ITS PROCESS

I"trd!ct8".

P$astic e1trusin f tu*e, hse and pipe is a stead+.state prcess fr cnverting a

thermp$astic ra8 materia$ t a finished r near.finished annu$ar prduct- The ra8

materia$ is usua$$+ in the frm f p$astic pe$$ets r p8der- The cnversin ta)es

p$ace *+ frming a hmgeneus m$ten mass in the e1truder and frcing it under

pressure thrugh an e1trusin die rifice that defines the shape f the prducts

crss sectin- The frmed materia$, r e1trudate, is c$ed and dra8n a8a+ frm

the die e1it at a cntr$$ed rate- The e1trudate can then *e 8und n a sp$, cut

t a specified $ength, r directed int anther in.$ine prcess- '+ cntrast 8ith

in:ectin m$ding r *$8 m$ding, 8hich are c+c$ic prcesses, e1trusin is a stead+.

state prcess- This stead+.state characteristic prduces sme uni6ue *enefits and

cha$$enges as a manufacturing prcess- E1truded prducts are ver+ $ng and

cntinuus, and have a crss sectin that is usua$$+ cnstant 8ith respect t the

a1is r directin f prductin- In:ectin.m$ded prducts are discrete items 8ith

var+ing crss sectins in each a1is- The fact that the e1trusin f tu*e, hse and

pipe is a stead+.state prcess 8i$$ *e discussed in man+ areas f this artic$e-

The termin$g+ used fr descri*ing tu*e, hse and pipe varies frm industr+ t

industr+-


9/34

32

Fr the use in this artic$e, tu*e prducts are % in uter diameter r $ess, and are

prducts that need t *e f$e1i*$e in their use- E1amp$es f tu*ing inc$ude medica$

catheters r f$e1i*$e pneumatic tu*ing- Hse prducts are genera$$+ % in uter

diameter and greater, and are prducts that a$s are f$e1i*$e in their use- 9ardenr irrigatin hse are gd e1amp$es f hse prducts- Pipe prducts are genera$$+

rigid in frm 8hen cmpared t tu*ing and hse, and can *e an+ diameter in sie-

Pipe prducts can range frm Jdiameter 8ater pipe made frm (P2(, up t 4"

diameter crrugated drainage pipe made frm HDPE- These naming cnventins are

ar*itrar+ and are used fr cnvenience-

E!8p;e"t.

The ma:r cmpnents f a tu*e, hse, r pipe e1trusin s+stem are ften divided

int cmpnents that are upstream f the e1truder, the e1truder itse$f, and thse

that are d8nstream f the e1truder- Upstream cmpnents inc$ude resin hand$ing

e6uipment fr cnve+ing the ra8 materia$s t the e1truder, and resin cnditining

e6uipment that 8i$$ pre.heat the resin, r cntr$ the misture cntent f the resin

*efre it enters the e1truder feed thrat- The d8nstream cmpnents inc$ude a

m$ten resin fi$ter r screen changer, the e1trusin die assem*$+, the 6uench r

vacuum siing tan), an+ prduct measurement instruments, the e1trusin $ine speed

cntr$$er in the frm f a *e$t pu$$er r nip r$$ set, and fina$$+ a prduct cut.ff

device r 8inding e6uipment- There are additina$ e1trusin prcess methds that

8i$$ ta)e the e1truded prduct direct$+ int anther in.$ine prcess fr the additin

f a reinfrcement *raiding r fr the additin f ther catings r resin

$a+ers-


10/34

32

%ater8a


11/34

32

prvide a hmgeneus me$t at a cntr$$ed v$umetric rate- Kuenching temperature

and the rate at 8hich the e1trudate is dra8n are cntr$$ed r mnitred t

prvide a cntr$$ed prduct sie- Dimensin measurements, using a variet+ f

gauging methds, can *e ta)en f the e1trudate as it is prduced- In cntrast tin:ectin m$ding, e1trusin can var+ the sie f the fina$ prduct 8ithut changing

the die t$ing- (mmn e1trusin prductin t$erances r prcess cnsistenc+ are

he$d t 8ithin %G f the nmina$ measured va$ue-

#s these manufacturing prcesses inv$ve stead+ state cnditins, an+ actin that

can sta*i$ie an+ parameter r cnditin is *eneficia$ t the prcess-

Prd!ct De#8=" C"#8derat8"#.

E1truded tu*e, hse and pipe prducts fa$$ readi$+ int t8 categries; thse having

:ust ne resin in the prduct crss sectin, and thse having mre than ne- The

first categr+ inc$udes p$ain tu*ing and pipe, r a sing$e $a+er vercating- The

secnd categr+ inc$udes tu*ing r pipe 8ith surface r encapsu$ated striping, and

mu$ti$a+er e1truded prducts- 2arius nn.resin materia$s can a$s *e encapsu$ated

8ithin $a+ers f the e1trudate t prvide additina$ prperties- Fi*ers can *e

*raided ver an e1truded tu*e su*strate in t increase *urst strength- Stain$ess.

stee$ 8ires can *e added t imprve )in) resistance r t prvide e$ectrica$

cnductivit+- Fi*er.ptic *und$es can carr+ images r i$$uminatin- Each f these

techni6ues has ptentia$ fr use in tu*e, hse and pipe manufacturing-

Up#trea; C;p"e"t#.

Incming ra8 materia$ inspectin-

#s these prduct manufacturing prcesses are stead+.state as mentined *efre,

and 8i$$ *e mentined again, the cnsistenc+ f the resin and its prcessing

prperties are a*s$ute$+ critica$ t the sta*i$it+ and cnsistenc+ f the


12/34

32

manufacturing prcess-(hanging frm ne *atch f resin t anther can *e $i)e

cmp$ete$+ changing the t+pe f p$+mer a$tgether- Even 8ithin a *atch f resin,

there can *e significant characteristic changes that 8i$$ a$ter the stead+.state

nature f the prcess-It is ver+ *eneficia$ t *e a*$e t measure and verif+ the ph+sica$ and prcessing

characteristics f the resin *eing prcessed n a regu$ar *asis t ma)e sure that

the cntr$ parameters that have *een set fr the e1trusin $ine 8i$$ cntinue t

prduce the desired prduct- It is ver+ unrea$istic t ma)e the grss assumptin

that the prcessing characteristics f resin in ne *ag r 9a+$rd 8i$$ *e identica$

t that f anther- This t+pe f inspectin a$s ma)es gd ecnmic sense as the

regu$ar inspectin 8i$$ insure that the resin used in the prcess 8i$$ nt *e

cnverted int use$ess scrap n the e1trusin $ine- If the e1trusin $ine is nt

prducing gd prduct, ma)ing mne+ fr the cmpan+, it is csting mne+ in $st

materia$, $st 8ages, and avai$a*$e manufacturing time- Resin characteristics t *e

measured and recrded inc$ude resin densit+, me$t inde1, shear rate vs- viscsit+

data, and tensi$e strength- #nther imprtant visua$ measurement methd is the

pressing ut f thin resin fi$ms n a heated, h+drau$ic press- This a$$8s a pre.

e1trusin $) at the resin after it has *een me$ted and frmed- This methd a$$8s

a $) at c$arit+ r c$r, the presence and amunt f ge$s, unme$ts, r particu$ate

cntaminatin in the incming resin *atch-

The pressing ur f resin fi$ms prir t e1trusin is ne f the sing$e mst va$ua*$e

eva$uatin pprtunities that the e1trusin $ine peratr has- Ever+ cmpan+ that

des e1trusin prcessing shu$d invest in a sma$$ resin ana$+sis $a* area that has

the prper measurement t$s- The resin measurements that are va$ua*$e t the

e1trusin prcess d nt re6uire a high.$eve$ individua$ t ma)e- #n average

e1trusin peratr can *e trainedt perfrm these *asic resin prpert+ chec)s-

#fter a$$, the e1trusin peratr is the ne that 8i$$ *e respnsi*$e at the end f

the da+ fr ma)ing gd e1truded prduct at the end f the e1trusin $ine-


13/34

32

The E1truder-Se$ectin criteria-The perfrmace re6uirements f the e1truder are *eing successfu$$+ met 8hen thedesired uputs are *eing attained, 8ith ade6uate resin me$ting and me$thmgeneit+, at a cnstant discharge pressure and me$t temperature- =hen an

e1truder is se$ected fr a prcess, the f$$8ing e1truder parameters need t *ecnsidered;E1truder diameter-LD rai-Feedscre8 design-Feedscre8 RP/ range and interchangea*i$it+-#vai$a*$e tr6ue and hrsep8er-9ear*1 design and thrust capacit+-The distri*utin f *arre$ heating nes-The t+pe f *arre$ c$ing-

The need fr venting the *arre$-The need fr feedscre8 c$ing- The design f the feedscre8 and the hardfacingf the *arre$ $iner- The cntr$ instrumentatin arrangement-

The e1truder is discussed in ther areas f this *) in great detai$- Suffice it tsa+ that fr this artic$e that the :* f the e1truder in the manufacturing f tu*e,hse and pipe, is t de$iver a hmgeneus me$t materia$, at a fi1ed and unifrmrate, at a fi1ed head pressure, and a fi1ed me$t temperature- It is much easierstated than accmp$ished- #s man+ varia*$es are in actin tgether in this s+stem,as the varia*$es interact, the+ 8i$$ cause prcess variatins f greater r $essermagnitude that 8i$$ manifest themse$ves in the e1truded prduct 6ua$it+-


14/34

32

CO%%ON TUBE, 4OSE, AND PIPE PRODUCT USES.

/edica$ devices L Pharmaceutica$ prducts-E$ectrica$ L cnduit-P$um*ing-Irrigatin-Natura$ gas distri*utin-/unicipa$ 8ater and se8er L crrugated pipe-Figure %7, pht curtes+ f RDN /anufacturing


15/34

32

Page !7S8imming p$s and spas-=riting instruments-a8n and garden-#utmtive-

(nsumer prducts L pac)aging-#pp$iances-/arine-Industria$ hse-

USES OF THE PROD(UTS ;

%- DR#DIED HOSE PIPES ; THE #'O2E PIPES #RE USED IN agricu$tura$purpse , industria$ and dmestic purpses !- 9#RDEN TU'IN9 PIPES, fr the garden purpse , curing f the *ui$dings 5- DPE BRISHI PIPES , used in the agricu$tura$ sectr-

. RA/%ATERLAS AND UTILITIES

a: RA/%ATERIALS


16/34

32

The ra8 materia$s re6uired fr the prductin f the prducts are

P2(>PO0 2IN0 (HORIDE? Resine , (P= >(HORIN#TED P#R#FIN

=#X? and DOP > DI O(T0E PS0IDE?

@: /aterThe 8ater cnsumptin fr the prcess is % (u*ic /eters per da+ fr ding

h+dr test fr E6uipment fr finding ut $ea)ages in 8e$ding- The tta$

re6uirement f 8ater 8r)s ut can *e met ut f the *re 8e$$-

c: E??

The tta$ manp8er re6uirement is 5" persns, inc$uding s)i$$ed < semi

s)i$$ed - The persns re6uired fr securit+ is a*ut 5 and the+ are hired n

cntract *asis frm varius agencies-

e: Per

The p8er re6uirement is %"" hp and surce f P8er is dra8n frm

T(PD( and &" B2# 9eneratr is purchasing t avid P8er cut

Pr*$ems-

0.LAND AND SITE DE(ELOP%ENT AND LOCATION6

The manufacturing unit is situated at p$t n 3" s+ n 45 f %!" s6 +ards

f%7"" sft in pedda am*erpet vi$$age, RR Dist


17/34

32

The $and 8hich is prpsed t *e used fr esta*$ishment f manufacturing unit

is admeasuring a*ut %!" S6 +ards -

The unit is accessi*$e fr the transprt faci$it+%- Transprt faci$it+ t Natina$ high8a+-

!- The unit is Prvided 8ith (mpund 8a$$ 8ith s$ar fencing t avid theft

f /ateria$s, and 8ith a ver+ gd interna$ cntr$s in a$$ the areas-

.PROJECT COST AND %EANS OF FINANCE

Pr5ect C#t6


18/34

32

The tta$ estimated pr:ect cst f the prpsed manufacturing unit is Rs

%47-!4 $a)hs and the detai$s are given in the ta*$e *e$8;

A. PROJECT COST

7R# 8" La9h#:

De#cr8pt8" A;!"t

%- P$ant < /achiner+ 152.26

!- E$ectrica$ E6uipment inc$uding transfrmer 3.00

5- (ivi$ =r)s 7.50

7- ID( 1.50

Tta< $.+

B. %EANS OF FINANCE

7R# 8" La9h#:De#cr8pt8" A;!"t

%- E6uit+ frm Prmters &7-!4

!- Term an frm 'an) %%"-""

Tta< $.+

Tta<

DE Rat8 +.)*

De@t c;p"e"t .31

e!8ty C;p"e"t **.)*

The current prpsa$ is fr the esta*$ishing manufacturing p$ant fr Dradied Hse

Pipes , 9arden Tu*ing Pipes, $dpe Brishi Pipes , 8ith a tta$ *ui$t up area f %7""

sft > 8hich sha$$ inc$ude the /achiner+ erectin ,*ui$ding, civi$? and , the tta$

pr:ect cst is Rs %47-!4 $a)hs f 8hich the cmpan+ has re6uested fr the term

$an f Rs %%"-"" $a)hs fr the purchase f the machiner+ and the esta*$ishment f

the unit $i)e the *ui$ding and the machiner+ as detai$ed in, the cmpan+ sha$$ infuse


19/34

32

the remaining Rs &7-!4 $a)hs fr p$ant and machiner+ ,e$ectricit+ and ther

pr:ect essentia$s $i)e 8r)ing capita$ margin and ther necessaries-

/r98"= Cap8ta<

The app$icant has re6uested fr the 8r)ing capita$ $imits f Rs 4&-"" $acs and

&"-"" $acs etter f credit t meet the da+ t da+ e1penses f the cmpan+ and t

*ridge the 8r)ing capita$ gap-

1. APPRO(ALS RE2UIRED & STATUS

In Tanania a$$ the apprva$s and the permissins are prvide *+ a sing$e

8ind8 apprving authrit+ ca$$ed Tanania Investment (entre > TI(?-


20/34

32

A!thr8ty P!rp#e Stat!#

Registrar 8ithPartnership

(ertificatef

Incrpratin

(mp$eted

T(PD( P8er (mp$eted

Department f(mmercia$Ta1es

2a$ue#dded Ta1 <(ST

(mp$eted

DI( #$$ #pprva$s< SSI

(mp$eted

District Industries(entre

SsiRegistratin

(mp$eted

-.SC4EDULE OF I%PLE%ENTATION

Particulars Date of

Commencement

Date of Completion


21/34

32

L̀and Acquisition 01-05-2015 31-05-2015

Civil Works 01-06-2015 31-08-2015

Plant & Machinery

- Placement of Orders

- Delivery

Completed

1-07-2015Completed

31-08-2015Erection & Commissioning 01-09-2015 15-09-2015

Trail Runs 15-09-2015 30-09-2015

Commercial Production 01-10-2015

3.FINANCIAL STATE%ENTS AND (IABILIT

The tta< c;;erc8a< act8>8ty 8# @e8"= d8>8ded 8"t * prd!ct#


22/34

32

The cmpan+ has started its e1pe$$ing unit under $eased premises at p$t n

3" s+ n 45 f %!" s6 +ards f%7"" sft in pedda am*erpet vi$$age, RR Dist

8ith a insta$$ed capacit+ f & TPD and the perating capacit+ at 4"G, and

started its cmmercia$ activit+ frm Oct*er !"%&RE(ENUE ASSU%PTIONS

The ?8r#t ?!


23/34

32

Pvc Resine fr F$e1i*$e garden Hsepipe &"-""G -)))

(P= 73-&"G 01)))

Uti$ities as Tin sta*i$ier and c$urs "-&"G *)))))

The purchase price f the ra8materia$ is as f$$8s fr 9arden Hse pipe

Particu$ars

Percentagef the

cmputatin R# per t"

Pvc Resine fr F$e1i*$e garden Hsepipe &"-""G -)))

(P= 5"-""G 01)))

DO' > Di1+ 'utane? %3-&G 3-)))

Uti$ities as Tin sta*i$ier and c$urs "-!&G *)))))

!- Other e1penses

a- P8er is ta)en at !",""" units per mnth at -"" per unit-

*- The 8ater cnsumptin is 5"""" iters per mnth M % Rs per $iter

#dministrative and Se$$ing e1penditures are ta)en at "-&"G f the sa$es

Repairs and maintenance

Repairs < /aintenance

'ui$dings "-&"G

P$ant < /achiner+ "-&"GE$ectrica$s < /isc- Fi1ed #ssests "-&"G

C- The tta$ emp$+ees patter is given *e$8DETAILS OF %ANPO/ER RE2UIRED

Part8c!


24/34

32

D8rect /a=e#

Supervisr % 5&"""

#ccunts Officer % %&""" +

E$ectrician 5 %&""" 0

UnS)i$$ed a*r !" C""" $3

Pens % &""" $

Operatrs ! %&"""

/ar)eting ! %&"""

Tta$ sa$aries >Rs- In a)h? *-

#dd; Fringe 'enefits M &G %-3!

Tta< #a


25/34

32

=ORBIN9 (#PIT# #SSU/PTIONS #ND ITS HODIN9 PERIOD

#s per the genera$ mar)et surve+ and as per the industr+ ana$+sis the

f$$8ing is the h$ding perids

Particu$ars H$ding perid in mnthsRa8 materia$ %-""

Finished 9ds "-&"

'i$$s Receiva*$es !-""

Sundr+ (reditrs >(? "-!&

%5- The tta$ repa+ment is ta)en at 4-& +ears, 8ith "-& +ear mratrium -

%7- The mratrium is ta)en at 4 mnths and the remaining C mnths-

%&- The tta$ capita$ cntri*utin is at Rs &7-!4 $a)hs is fr the initia$

pr:ect ut$a+ cntri*utin and the remaining is fr the 8r)ing capita$

margin-

$). PROJECT ECONO%ICS

Pr?8t# @e?re Ta 7PBT:

The pr:ect ma)es prfit right frm the first +ear f peratins 8hich is

n$+ fr 4 mnths - The P'T is estimated t *e Rs &%-34 $acs during the

first fu$$ +ear f peratin 8hich is !"%.%C increases t Rs +.$*


26/34

32

P'T figures are sh8n in the ta*$e *e$8- The detai$ed ca$cu$atins are

presented in #ppendi1 -

Particu$ars !"%&.

%4

!"%4.

%

!"%.

%C

!"%C.

%3

!"%3.

!"

!"!".

!%

!"!%.

!!P'T >in

Rs ?$a)hs 22.68 51.96 62.13 70.72 77.73 82.24 84.72

Pr?8t a?ter Ta6 7PAT:

The P#T is estimated t *e Rs 53-%3 $acs during the first fu$$ +ear f

peratin 8hich is !"%.%C increases t Rs .3


27/34

32

The interna$ rate f return >IRR? f the pr:ect after adding up nn.cash

e1penditure items such as Depreciatin, Pre$iminar+ and pre.perative

e1penses 8ritten ff during the +ears under cnsideratin and interest n

Term an 8r)s ut t 5"-53G- This is significant$+ higher than the*enchmar) cnsidered fr the industr+-

Brea9e>e" A"a8ce C>era=e Rat8

The average DS(R is pr:ected t *e !-&", 8e$$ a*ve the nrm f %-&- This

indicates a*i$it+ f the .pr:ect t service the de*t- Hence cnsidering the

scheme the DS(R 8i$$ further strengthen-

%de ? F8"a"c8"=, Deprec8at8" & I"tere#t6

The tta$ capita$ investment fr the pr:ect is estimated Rs &7-!4.

The de*t t e6uit+ rati fr the pr:ect 8r)s ut t !-"5;%- The

financing mi1 is presented *e$8;

S


28/34

32

!- Term an %%"-""

Tta< $.+

$$. S/OT A"a


29/34

32

Government is offering many ].

11.2 Weaknesses

Availability of skilled labour.

11.3 Opportunities

Government policy is in favor of the industries as per the new

industrial policy of Telangana .

VAT refund by the state government.

Capital subsidy and the power subsidy and the interest rebate.

11.4 Threats

Rapid industry growth attracts several competitors.

$+. %ARKETING AND T4E /ORKORDERS

Since the prmters are in this activit+ fr the past !" +ears , the+ have a ver+

gd in$and and the e1prt mar)et t e1ecute , the cmpan+ has a$read+ ta)en the

f$$8ing steps fr its mar)eting thrugh


30/34

32

2er+ strng c$iente$e as the prmters are a$read+ in the fie$d fr the $ast

!" +ears -

One f the partners is a$read+ a reputed distri*utr in #ndhra Pradesh and

Te$angana-

$*. %AC4IENR SUPPLIERS LIST

The cmpan+ prpses t *u+ the machiner+ frm -

%- 2i:a+ Engineering 8r)s Bavadiguda ,H+dera*ad

!- /Ls Sagar P$ast /achines Ne8 De$hi


31/34

32

5- /Ls Sagar /achine t$s . . Rampura, Ne8 De$hi

7- H+ma1 Industries. Ha+athnagar H+dera*ad-

$. CONCLUSIONS

S S INDUSTRIES proposes to set a manufacturing unit at plot no 90 sy

no 63 of 120 sq yards of1400 sft in pedda amberpet village, RR Dist


32/34

32

The following observations are made after a thorough assessment:

Promoters Strength

The promoter/r- Srinivas Redd+ 0eri)a$redd+ , is a$read+ a directr in/#N@EER# P2( PRODU(TS P2T ATD , BPR PO0/ERS P2T TD , BPR

PIPES P2T TD , 2#RSHINI PO0/ERS P2T TD , 8hich are a$read+ in the

same )ind f activit+ and s an esta*$ished mar)et

Raw Material Availability

The plant is located in the place where there is abundant reach of the

raw materials and utilities .

Other Financial Benefits:

Government policy is in favor of the industries as per the new industrial

policy of Telangana .

VAT refund by the state givernment.

Capital subsidy and the power subsidy and the interest rebate

It is considered that the process followed for the manufacturing

process for the project is feasible.

1. Capacity Utilization

Capacity utilization is assumed at 60% during first year of operation and

the same to go up by4"G, 4&G,"G,&G,&G,&G,during the subsequent

year of operations. This assumption is justified in view of the fact that

there in an assured demand for the proposed products and the track


33/34

32

record of the company shows that they could achieve 100% capacity

utilization in the past for manufacture of similar products.

7. Break Even Point (BEP)

The project’s BEP for the project is at 49.49% level of installed capacity in

the second year. This factor stresses on the strength of the proposed

activity for financing the project.

8. Debt Service Coverage Ratio (DSCR)

The Average DSCR for the project is at 2.50 times, which is above the

benchmark.

9. Internal Rate of Return (IRR)

The Internal Rate of Return of the project is 30.39% and, the same is

considered reasonable, and above the benchmark level.

10. Debt Equity Ratio:

The debt equity ratio for the project is 2.03:1

11. Project Implementation

The Company proposes to complete the commissioning of the October

2015.


34/34

O>era

Project Report on Threading Drill Pipes

Documents