PROJECT PROFILE

ON
HOT FORGED BOLTS & NUTS
*************

Name of the Project

Hot forged bolts & nuts

Capacity

300 MT/Anum

Quality specification

As per market demand

Year of Preparation

Yr. 2012-13

Prepared By

S. P. Verma
Asstt. Director [Met.]
MSME-DI, Patna
PH. 0612-2262208[O]
0612-2262186[Fax]
E-mail: dcdi-patna@dcmsme.gov.in
URL : www.msmedipatna.bih.nic.in

Page 1

1. INTRODUCTION :
Bolts & nuts are a type of industrial fasteners used in various products,
machines, structures etc. A fastener is used for joining, holding or assembling a
single or multiple components. Bolts and nuts are in the category of repeated used
fasteners. Bolts and nuts are in the category of headed and threaded fasteners.
Based on the process of manufacture it is classified as machined bolts & nuts and
hot forged bolts & nuts.

2. MARKET :
Hot forged bolts & nuts are among the most commonly used fasteners in the
industrial transport, fabrication cum construction and automobile sectors. There are
good number of Automobile Industry as well as auto workshop units in the country, which
require hot forged bolts & nuts. Keeping the point in view there is a wide scope of
establishing units producing hot forged bolts & nuts of different shapes and sizes.
3. BASIC AND PRESUMPTION :
This project has been prepared on the basis of the following presumptions :
1. Working hour per day : 8 Hrs. per shift and 300 working days per year.
2. Time period for achieving full capacity utilization : 3 Yrs.
3. Labour wages : As per local market value or otherwise as per minimum wages act.
4. Margin money : 20% of the total investment.
5. Land cost & construction of sheds : Leased from IADA or on rent.
6. Cost of machines & equipments : Based on indigenous market price.
7. Subsidies & Grant from Central/state Governments : Based on govt. policy.

Page 2

4. IMPLEMENTATION SHEDULE :

1. Preparation of detailed project report

- 1 Month

2. Provisional registration

- Month

3. Sanction of Term Loan

- 1 Month

4. Acquisition of Land

- Month

5. Civil Construction

- 1 Month

6. Procurement of machine and equipment

- 1 Month

7. Arrangement of utilizes

- Month

8. Procurement of raw materials

- Month

9. Erection, installment and electrification

- 1.5 Month

10. Recruitment of stall

- Month

11. Commission of train run

- Month

12. Commercial production

- Month

5. TECHNICAL ASPECTS :
Hot forged bolts & nuts are manufactured by a process of hammering or
pressing when the material is in a red hot condition or to be scientifically specific,
when it is above the re-crystallization temperature of the material. The process of
forming the product by hot forging is resorted to as this process invests certain
advantages over the product manufactured by machining only. Some of these are
saving in materials, better grain structure and grain flow, improved strength, high
production and the like. At the same time it is tested after manufacturing operations in
order to control mechanical properties of the components required to impart in it.

6. QUALITY SPECIFICATIONS :
The quality of hot forged bolts and nuts have to be superior and good in all aspects in
order to fulfill the requirement of the customer and standard provided by the customer. The
products are to be checked at every stage of operations with regard to the various critical
dimension of products and its form. To achieve this right quality of material have to be used
depending on the type and classification of the product. After completion of the process final

Page 3

inspection as per the standard given are made. Necessary rectification in the process cycle is
made if required to maintain the standard.
The BIS has formed a number of standards for fasteners like:IS 1363-1967 : Black hexagon bolts , nuts & lock nuts (dia 6-39mm)
IS 1367-1967 : technical supply conditions for threaded fastners.
IS 4260-1967 : dimension of lengths and thread lengths for bolts, screws and studs.
IS 4172-1967 : dimension of redials under the head of bolts & nuts etc.
IS 6623-1972 : high tensile friction grip nuts etc.
7. PRODUCTION CAPACITY :
Bolts & nuts of 12 to 36 mm size : 300 MT per annum

8. POLLUTION CONTROL :
Heat treatment industry has a share in the present environmental degradation. So it
requires NOC from Pollution Control Board of the State. Heat treatment Industry depending
on the character of the production is a great source of heat, toxious gases, dust and noise. It
also produces a large quantity of wastes such as irreclaimable ashes and scales. It also
produces a large quantity of wastes such as irreclaimable ashes and scales. These all elements
have individual contributory affect on the environmental degradation and causes unhealthy
and unsafe, conditions within the unit. The important consideration to prevent pollution is
the right choice of appropriate technologies to be adopted and correct installation of
instruments and machinery.

Page 4

There are mainly two methods for control of pollution in a small Industrial units :
1. By Exploiting Metrological and Topographical Conditions :
For small unit, the exploitation of natural draughts and climate conditions are
best cheapest methods for dispersion of chimney emissions. Use of equipment like gas
scrubbers, ventilation fans, washers etc require considerable capital investment and also in
value running expenses.
2. By using various equipments for cleaning and dispersion of heat treatment
emissions :
Use of high stack chimney and operating the unit at a time of favorable natural
draught through chimney, helps to successfully disperse the dust and gases emitted from the
unit at zero or negligible cost. Proper treatment and handling of the raw material also
reduces the emission contents, particularly dust. Use of simple measures like removal of dust
from the furnace charge, use of oil of proper strength with appropriate air blast will also help
to a great extent.
10. ENERGY CONSERVATION :
It has become essential these days that the energy conservation efforts are needed to
be strengthened substantially. The energy audit is an integral part of an energy conservation
project and is the key to a systematic approach for decision. Various factors which affect fuel
economy in industrial furnaces may be stated as :
1.
2.
3.
4.
5.
6.

Complete combustion with minimum excess air;

Proper heat distribution;
Operating at the desired temperature;
Reducing heat losses from openings,
Minimizing wall losses;
Waste heat recovery from flue gases;

The principles of good combustion for the proper selection and maintenance of fuel
oil burner is very important and it has the main role. So, standard and good quality burner
should be used for better conservation of oil fuel.

Page 5

10. FINANCIAL ASPECTS : (hot forged bolts & nuts)

1. Fixed Capital :
i)
Land and building :
Total Covered area : 300 sqm. Rent Rs. 10000 p.m.
Build up area : 120 sqm.
ii) Machinery & Equipments (Indigenous) :
SN
Description
1. Oil fired F/c with blower, 3HP Motor, oil tank,
burner, pipe lines etc.
2. Friction screw press 150 tone capacity, 15 HP Motor
for forging bolts.
3. Horizontal nut forging M/c (15 HP motor)
4. Inclinable power press (50 MT capacity with 5 HP
motor)
5. Inclinable power press (30 MT capacity with 3 HP
motor)
6. Double spindle nut tapping M/c with 2 HP Motor
7. Adda type
2nd operation lathe for facing,
chamfering, sizing etc. with 1 HP motor
8. Thread rolling M/c with 10 HP motor
9. Thread cutting M/c Landis type 5HP motor
10. Power Hacksaw 150 mm capacity (1 HP)motor
11. Weighing balance, platform type capacity 200 KG
12. Bench type drilling M/c 20 mm cap. with 0.75HP
motor
13. D E bench grinder 200 mm wheel with 1HP motor
14. Dies, fixtures, tools gauges etc.
15. Fire fighting equipments
16. Hand tools & material handling equipments
Total :
Electrification & Installation charges @ 10% of the
machinery & equipment
Furniture & office equipment
Total :
Pre operative expenses
Total :

No.

Rate

75000

Amount
(Rs.)
150000

250000

250000

1
1

275000
150000

275000
150000

85000

85000

1
1

25000
70000

25000
70000

1
1
1
1
1

250000
95000
21000
10000
15000

250000
95000
21000
10000
15000

1
1
LS

10000
35000
7500
15000
---

10000
35000
7500
15000
1463500
146350

--

115000
1724850
50000
1774850

Page 6

1. Personnel :
Sl.No.
i
ii
iii
iv
v
vi

Designation
Supervisor/Engineer
Skilled workers
Semi-Skilled Workers
Maintenance worker
Store-keeper-cum-clerk
Watchman-peon

No.
1
1
1
2
1
2

Salary (pm)
14000
12500
10000
9500
11500
5500
Total :

Total (Rs.)
14000
12500
10000
9500
11500
11000
68500
10275
78775

Staff welfare@ 15%

Total :
2. Raw Material (Per Month) :
SN. Particulars
1.
MS Rods of desired sizes
2.
Furnace oil

Qty.
28 MT
1500Lit.

Rate
Rs.35000/Rs. 46/- per lit
Total:

Value
980000
69000
1049000

3. Utilities (per month) :

1.
2.

Electrical power 35.8 KWH @ 6/- per KWHx6x25 =

Water
Total:

32227
2500
34727

4. Other Contingent expenses (Per Month) :

SN
1.
2.
3
4
5.
6

Particulars
Rent
Postage & Stationary
Consumable
Repair & maintenance
Transport & Conveyance
Unforeseen expenses

:
:
:
:
:
:
:
Total

Amount (Rs.)
10000
2500
2000
5000
3500
4500
27500

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5. Working Capital (Per Month) :

1.
2.
3
4

Raw Material
Personnel
Utilities
Other contingent exp.

:
:
:
:

Total
Total Working Capital for three months =1190000 X 3
6. COST OF THE PROJECT :
1.
Fixed investment on M/cs. & Equipments
2.
25 % of Working capital (3570000 x 25%

:
:

1049000
78775
34727
27500
1190002
3570000

:
:

1774850
892500
2667350
2667500

:
:
Total
Say (Rs.)

11. MACHINERY UTILIZATION :

The scheme is on the basis of 100 % efficiency on single shift basis, considering 25
working days in a month. This project is based on operations like material heating to forging
temperature, forgings, trimming, normalizing & rough machining etc the break-even-point
has come to 43 % which will be achieved on giving care at different operational stage and
full capacity utilization is needed for full achievement. The repayment period of the project
is three Years.
12. FINANCIAL ANALYSIS :
1. Cost of Production (per year)
1.
2.
3.

Recurring cost (1190000 x 12)

Depreciation (15% x 1463500 )
Interest on investment @ Rs. 14% x 2667350=
Total:
or say (Rs.)

14280000
219525
373429
14872954
14873000

Bolts & nuts 300 MT x @ Rs.55000 / MT =

Forging scrap & rejections 24 MT x @30000/MT =
Total:

16500000
72000
16572000

2. Turn Over (per year)

1.
2.

Page 8

3. Profit (per year) :

Or Annual Sales Cost of Production = profit
= 16572000 14873000 =
Rs.1699000
Rs.1699000/
1699000/4. Net Profit on sales (per year) :
Net Profit x 100 / Total Sale
= 1699000 x 100 / 16572000

= 10 %

5. Rate of Return :
Net Profit x 100 / Total Investment
= 1699000 x 100 / 2667350

= 63 %

6. Break Even Point :

1.
2.
3.
4.

Fixed Cost :
40% salary & wages (78775x12) x 40%
40% utilities & other expenses (746724x40%)
Depreciation furnace Dies & Tools @ 15% x 1463500
Interest on total capital investment @ 14% x 2667500
Total:
or say

378120
298690
219525
373450
1269785
1269800

BEP :
Fixed Cost x 100 / Fixed Cost + Profit
= 1269800 x 100 / (1269800+1699000)

= 43 %

Profit+Depriciation+Int on term Loan

1699000+122600 + 373429
DSCR = ---------------------------------------------------- or -----------------------------------Int. on TL +Installment of TL
373429 + 875835

2195029
= -------------- = 1.75:1
1249264

Page 9

13. NAME & ADDRESS OF PLANT & MACHINERY:

1. M/s Westman Engg. (P) Ltd. Dumdum Road, Kolkata

2. M/s Macro Furnaces (P) Ltd, Faridabad (Haryana)
3. M/s Wellmake Engg. Corpn. Ltd., Mayapuri Phase IB-104, New Delhi
4. M/s Patel Furnace & Forging (P) Ltd, A2/510, GIDC Estate Makarpura, Vadodra.
5. M/s Metatherm Furnace Pvt. Ltd.
6. M/s High-Temp. Furnace Pvt. Ltd. 1-C, II-Phase, Peenya Industrial Area, Post Box
No. 5809, Bangalore 560058.
7.

M/s. Blue Steel Engineers Pvt. Ltd.

Blue Steel House, D-12 MIDC, Marol Ambhri (East),
Mumbai-400 073

8. M/s. Inspection Instruments Corpn.

Sherif Douj Street, Zakaria Bldg.,
Mumbai-400 003

Page 10