Particle Board

PARTICLE BOARD
CONTENTS
SECTION
PRODUCT CHARACTERISTICS AND SPECIFICATION
SECTION
II
PRODUCT APPLICATIONS
SECTION
III
INDIAN MANUFACTURERS
SECTION
IV
IMPORT/EXPORT LEVEL
SECTION
PRICE DETAILS
SECTION
VI
INDIAN DEMAND
SECTION
VII
BROAD OUTLINE OF MANUFACTURING PROCESS
SECTION
VIII
RAW MATERIAL REQUIREMENTS, UTILITY

AND AVAILABILITY
SECTION
IX
DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS
SECTION
SWOT ANALYSIS
SECTION
XI
FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS
SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATION
Source
Particle boards are produced from the agricultural wastes such as rice husk, jute sticks,
waste wood (non-commercial wood waste), sugarcane wastes.
Particle boards can also be made fire resistant by certain chemical treatment.
Properties
Particle boards have many desirable properties such as high density, high surface hardness,
abrasion resistance, high durability etc.
Size
Particle boards are made of different thickness such as 12 mm, 19 mm, and 25mm and
sizes.
SECTION - II
PRODUCT APPLICATIONS
Areas of application
*
*
*
*
*
*
Show cases,
Partitions,
Fridge tops,
Table tops,
Sewing machine covers,
Window-door panels
SECTION - III
INDIAN MANUFACTURERS
A large number of cottage units are in operation producing Particle board in small and
unorganised sector.
There are reported to be more than one hundred units operating at small scale sectors
producing particle board in the country.
*
*
*
*
*
*
The Bakelite Hylam Ltd.,Andhra Pradesh

N.C.L. Industries Ltd.,Andhra Pradesh
Novopan Industries Ltd., Andhra Pradesh
Hans Polyurethanes Limited,Ahmedabnad
Colour-Chem Limited, Mumbai
Ecoboard Industries Ltd.Pune
(Formerly known as Western Bio Systems Ltd.,)
SECTION - IV
IMPORT/EXPORT LEVEL
Port bulletins were carefully scrutinised
No import/exports could be seen
SECTION- V
PRICE DETAILS
Present price level for Particle board
12 mm thick
19 mm thick
25 mm thick
Rs.200 per sq.m

Rs.280 per sq.m.
Rs.350 per sq.m
Taxes and duties : Extra as applicable
SECTION - VI
INDIAN DEMAND
The particle board are alternative to solid wood and ply-wood in various applications.
Particle boards made of cheap raw materials are also used as sealing tiles.
Particle boards can be used in the construction industry, as partition walls, panel boards etc.
Housing Sector
Hotel and entertainment
Commercial buildings like theaters
Around 7.5 million sq.m. per

annum
Indian demand for

Particle board
Growth rate in demand
Around 6 to 7% per annum
SECTION - VII
BROAD OUTLINE OF MANUFACTURING PROCESS
Particle boards are produced largely from agro waste materials, such as sugarcane waste,
jute waste etc.
Such agro waste materials are digested in caustic solution and subjected to vigorous
agitation.
The digested pulp is subjected to pressing in hydraulic press or manual pressing in the case
of tiny units.
The pressed material of specific size and shape is subjected to drying in tunnel type of
dryers or some times dried by solar heating.
Source of technology
*
Central Building Research Institute

(Council of Scientific and Industrial Research)
Roorkee
Major plant and machinery suppliers

Name of the equipment
Name of the suppliers
Hydraulic truck
Deccan Mechanical and Chemical Industries Ltd.,

Flat No.4, A-Wing,
7th Floor, Parsn Manere
602, Mound Road,
Chennai-600 006
Iyappan Engineering Industries Pvt. Ltd.
Chennai-600 098
Digestor
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
Boiler
Firetech Boilers Pvt. Ltd.

No.211, 2nd Cross,
38th Main, B.T.M. Layout
2nd Stage, Bangalore-68
8
Dryer
The Anup Engineering Ltd.,

Behind 66 KV Electric Sub Station
Odhav Road, Ahmedabad-382 415
ATRE Thermal Products Pvt. Ltd.,
Pushpa Heights, 1st Floor,
Bibwewadi Corner, Pune-411 037
SECTION - VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY
The raw materials can be sugarcane waste or jute waste etc.
These agricultural residues are not fully utilised at present, hence such raw materials are
available at cheaper prices.
The Indian particle board industries use the recycled waste agro raw -material such as cotton
rags in the form of tailor cutting, hosiery cutting and small quantities of waste paper. Other
agro fibres like jute, straw and banana are also used to blend with the primary fibres for
mottling effect.
10
SECTION IX
DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND
PROFITBAILITY PROJECTIONS
Economic Capacity
::
30000 sq.m. per annum
Project Cost
::
Rs. 80 lakhs
Assessment of project cost

1.
Land
S.No.
Description
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.
3.03
Building
S.No.
Description
2.1
2.2
Factory building of area 210 sq.m. at Rs.3200/sq.m.

Non-factory building of area 60 sq.m.at Rs.4500/sq.m.
Subtotal
3.
Description
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%)
Total cost of plant and Machinery
4.
Cost
Rs.in lakhs
6.72
2.7
9.42
Cost of Plant & Machinery
S.No.
3.5
3.6
3.7
3.8
3.9
3.10
Cost
Rs.in lakhs
2.75
0.28
Cost
Rs.in lakhs
23
1.73
2.3
1.15
28.18
3.38
0.56
0.56
0.56
0.56
0.56
34.57
Rs.2.00 lakhs
Technical know-how fees

11
5.
Miscellaneous fixed assets
S.No.
Description
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
5.8.
5.9.
6.
Cost
Rs.in lakhs
3
1.5
0.60
0.50
0.50
0.80
0.6
4.4
1.3
13.2
Preliminary & Pre-operative expenses:
S.No.
Description
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
Cost
Rs.in lakhs
0.80
0.80
0.80
0.70
3.50
1.40
8.00
7.
Provision for contingency
Rs.4.32 lakhs
8.
Working capital margin
Rs. 5.81 lakhs
9.
Total project cost
Rs.80 lakhs
10.
Means of Finance
Promoter's contribution
Term loan from financing institutions
Total project cost
11.
Rs.32 lakhs
Rs.48 lakhs
Rs.80 lakhs
Financial statements
12
Cost of production
A
Variable cost
Rs. in lakhs
Raw material and utilities

Spares and maintenance
Selling expenses
Total variable cost (A)
B
29.72
2.06
4.15
35.93
Fixed cost
Salaries and wages

Interest on term loan and working capital loan
Depreciation
Administrative expenses
Total fixed cost (B)
9
11.79
4.88
2.49
28.16
C.
Total cost of production (A+B)
64.09
D.
E.
Selling price per kg. (in Rupees)

12 mmthick
19 mm thick
25 mm thick
Annual sales turnover
Rs.200 per msq.m

Rs.280 per sq.m.
Rs.350 per sq.m
83
F.
Net profit before tax (E-C)
18.91
G.
Breakeven point in %
60%
13
SECTION X
SWOT ANALYSIS
Strength
Ready availability of raw material
Weakness
Need for quality improvement to effectively

substitute conventional product
Opportunity
Eco friendly product
Threat
Uncompetitive price level
14
SECTION XI
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND
RECOMMENDATION
Particle board is important eco friendly product that can be used in construction activity.
However, there are a number of other substituting products used in construction sector.
The use pattern of Particle board is bound to be selective and therefore careful demand supply
scenario in the local regions should be made in taking investment decision
The relevant experience and background of the project promoter is of vital importance in such project.
15

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PARTICLE BOARD

PRODUCT CHARACTERISTICS AND SPECIFICATION

BROAD OUTLINE OF MANUFACTURING PROCESS

RAW MATERIAL REQUIREMENTS, UTILITY

DISCUSSIONS ON ECONOMIC CAPACITY,

FACTORS INFLUENCING THE POSITION FOR

The Bakelite Hylam Ltd.,Andhra Pradesh

Rs.200 per sq.m

Taxes and duties : Extra as applicable

Around 7.5 million sq.m. per

Indian demand for

Growth rate in demand

Around 6 to 7% per annum

Central Building Research Institute

Major plant and machinery suppliers

Name of the suppliers

Deccan Mechanical and Chemical Industries Ltd.,

Chemitherm Plants & Systems P. Ltd.,

Firetech Boilers Pvt. Ltd.

The Anup Engineering Ltd.,

30000 sq.m. per annum

Assessment of project cost

Cost of land of 0.5 acre at Rs.5.5 lakh per acre

Factory building of area 210 sq.m. at Rs.3200/sq.m.

Cost of basic plant and machinery

Cost of Plant & Machinery

Technical know-how fees

Miscellaneous fixed assets

Preliminary & Pre-operative expenses:

Provision for contingency

Working capital margin

Rs. 5.81 lakhs

Total project cost

Raw material and utilities

Salaries and wages

Total cost of production (A+B)

Selling price per kg. (in Rupees)

Rs.200 per msq.m

Net profit before tax (E-C)

Ready availability of raw material

Need for quality improvement to effectively

Eco friendly product

Uncompetitive price level

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