Project Profile - PLASTER OF PARIS

I) Introduction:

         Plaster of Paris, which is calcium sulphate with half molecule of water of crystallization

         (CaSo4 ½ H2O) possess outstanding property of setting and subsequent hardening
when mixed with water. Plaster of Paris is extensively used in ceramic industry for the
preparation of models, moulds and plaster of toys. It is also used as a main raw material in
the manufacture of toys and statues, chalk crayons, gypsum plaster boards, decorative picture
frames, besides a wide range of applications in the interior decoration of buildings and other
establishments.

II) Market Potential:

         There is a growing industrial activity in the field of white ware, such as pottery,
sanitary ware, chemical and electrical porcelains, requiring large quantities of plaster of Paris
for making moulds and preparation of moulds. The demand for the product is ever
increasing. There is also considerable demand for the plaster of Paris arising from a large
number of shops and establishments engaged in making statues and interior decoration as
well as decorative plaster boards for false ceiling etc., which is in turn creating a good scope
for setting up new units.

III) Basis and Presumptions:

        1.         It has been taken into consideration that the unit will work on single shift basis
for 300 working days in a year.
        2.         Labour and wages mentioned as per the prescribed minimum wages.
        3.         Interest rate at @ 14% is considered in the project profile for recurring and non-
recurring investment.
        4.         Margin money will vary from 10-25% depending upon the location and scheme
adopted by the entrepreneur,                     i.e. self-employment or commercial scheme.
        5.         The costs of machinery and equipment, raw materials and consumables, other
contingent expenses etc.,                     indicated in the profile are based on those prevailing at
the time of preparation. Therefore, there are subject                     to necessary changes from
time to time based on the local conditions.
        6.         The break-even point is calculated on full capacity utilization basis.
        7.         The unit requires 1 to 2 months trial production to achieve full capacity.

IV) Implementation Schedule:

        It is possible to implement this project within 6 months. The following is the time
schedule required for implementation:

Period (in
Sl.No. Activity
months)
Provisional registration ,Project report preparation
1. 2
Acquisition of land /shed and loan application.
2. Procurement of machinery & equipments, and 3
 installation
Recruitment of Man power and Procurement of raw
3. 1
materials
Trial production, streamlining and Commercial
4. 1
production
  Total 7
V) Technical Aspects:

a) Process of Manufacture:

        The raw material gypsum is sorted and washed with water for removal of sand and other
impurities. The lumps thus obtained are then dried and powdered in pulverizer. The dried
gypsum powder is calcined in rotary drum- calcined using light diesel oil as fuel. The low-
pressure burner is used for calcination at a temperature of 160ºC to 180ºC. The process of
calcination is done over a period of about 2 hours, so that one and half molecules of water is
removed to convert the gypsum (CaSo4 2 H2O) into plaster of Paris
        (CaSo4 ½ H2O). After cooling the product (plaster of Paris) is further pulverised to a
fineness of 150 meshes and packed in airtight polythene lined gunny bags to avoid the plaster
of Paris from absorption of moisture. For manufacture of surgical grade plaster of Paris, a
mineral silinite, which is considered to be a purer variety of gypsum, is used.

b) Quality Control and Standards:

        The Bureau of Indian Standards has formulated and published the following
specifications for maintaining quality of the         product and testing purpose.

        IS 2333:1992 Plaster of Paris for ceramic industry

        IS 1288:1982 Methods of tests for mineral gypsum

        IS 4738:1998 Bandage plaster of Paris

        IS: 2547 (Part 1): 1976 Gypsum building plaster including

        Premixed light weight plaster

        IS 2547 (Part 2): 1976 Gypsum building plaster including premixed lightweight plaster

c) Production Capacity (per annum):                                 Qty. : 900 MTs. And Value of:
Rs.27,00,000.

d) Motive Power:                                                                10 HP.

e) Pollution Control:

        The product does not create any noise or water pollution. The air pollution will have to
be continuously monitored. Masks can be used by the workers while making powder
(grinding).
f) Energy Conservation

        General precautions saving energy particularly, the electricity and fuel are required to be
followed by adopting energy conservation techniques not only to conserve the power and
fuel but also to save considerable expenditure on their consumption in own interest.

VI) Financial Aspects:

        A) Fixed Capital
                (i) Land and building

Covered area: 2000 sq.ft with provision for stores,

Rs. 5,000 per month
office etc., with equal open area (Rented)
                (ii) Machinery and Equipments

Sl.No. Description Qty. R.s

Rotary cylindrical drum calcining capacity 2 MTs
1 1 No 1,50,000
(Locally fabricated)
Attrition type½ disc pulveriser MT/hour with
2 1 No 60,000
motor and other accessories
3 Computer system office furniture and equipment 70,000
4 Burner and other equipment 20,000
5 Installation and electrification charges @ 10% 30,000
Total 3,30,000
                (iii) Pre-operative expenses:

Project cost, electricity, deposits etc. Rs.20, 000

                (iv) Total fixed capital:

Sl.No. Item R.s

1. Machinery and Equipments 3,30,000
2. Pre-operative expenses 20,000
Total 3,50,000
B. Working Capital (Per Month)

                (i) Staff and Labour (per month)

Sl.No. Designation No. Salary/ month R.s

1 Manager 1 5,000 5,000
2 Computer operator 1 5,000 5,000
3 Technologist/Chemist 1 3,400 3,400
4 Skilled workers 3 2,000 6,000
5 Un-skilled workers 5 1,600 8,000
6 Peon/Watchman 2 1,500 3,000
Total 30,400
 + 15% perquisites 4,560
Total 34,960
                (ii) Raw Materials (per month)

Particulars Qty. Rate Amount in R.s

Gypsum 107 MTs 1000/MT 1,07,000
Woven bags polythene
1500 5/bag 7,500
cover lined for packing
Total     1,14,500
                (iii) Utilities (per month)

Power 1600 units @ Rs.4/unit 6,400

Water 200
Light diesel oil -1500 litres @ Rs.14/litre 21,000
Total 27,600
                (iv) Other Contingent Expenses (per month)

Rent 5,000
Postage, stationery and telephone 2,000
Repairs and maintenance 500
Transport charges 1,000
Other misc. expenses 2,000
Total 10,500
                (v) Working Capital (per month)

Staff and labour 34,960

Raw materials 1,14,500
Utilities 27,600
Other contingent expenses 10,500
Total 1,87,560
                (vi) Working Capital (for 3 months) 5,62,680 or say 5,63,000

C. Total Capital Investment

Fixed capital Rs. 3,50,000

Working capital for 3 months Rs. 5,63,000
Total Rs. 9,13,000
(VII) Financial Analysis

                (i) Cost of production (per annum) (Rs.)

Total recurring expenses 22,52,000

Depreciation on machinery and equipment @ 10% 9,000
 Depreciation on calciner, computer system and office
42,000
furniture @ 20%
Interest on total capital investment @ 18% 1,44,572
Total 24,47,572 or say 24,48,000
                (ii) Turnover (per annum)

Sale of 900 MTs. of plaster of paris @ Rs.3000/MT 27,00,000

                (iii) Net Profit (per year) (Before Income tax)

Turnover - Cost of production 27,00,000 - 24,48,000= 2,52,000

        (iv) Net Profit Ratio

        = Net profit per year x 100 / Turnover per year

        = 2,52,000x 100 / 27,00,000

        = 9.33%

        (v) Rate of Return

        = Net profit per year x 100 / Total capital investment

        = 2,52,000x 100 / 8,03,180

        = 31.37 %

(vi) Break even Point:

(a) Fixed cost

Total Depreciation on machinery & equipments 51,000

Interest on total capital investment 1,44,572
Rent 60,000
40% of salary and wages 1,67,808
40% of other contingent expenses 26,400
Total 4,49,780
(b) Net profit (per year) -------- 3,03,835

B.E.P.: = Fixed cost x 100 / Fixed cost + Profit

             = 4,49,780x 100 / 4,49,780+ 2,52,000

             = 64 %

VIII) Addresses of Machinery and Equipment Suppliers

1 M/s. Amic Industries 10, BT Road, 4 M/s. Wes man Engineers Co. (P)
 Kolkata-36. Ltd. 1/2, Allerby Road, Kolkata-20.
M/s. Continental Thermal
M/s. Durgapur Engineering Co.
Engineers 806, II Stage, 4th Main,
2 Ltd. Marshal House, 33/1, Netaji 5
A Block, Rajajinagar, Bangalore-
Subhash Road, Kolkata-700001.
10.
M/sPUZZOLANA Machinery
fabricators, P.O,7222, M/S. Utkal agencies, Rajgurupur
3 6
63/6,Rashomoni Sadan,18th road, Dist..SUNDERGARH, ORISSA.
Chembur, MUMBAI-71.
IX) Raw Material Suppliers

M/s. Mysore Minerals 39, MG M/s. TAMIN 9, Anderson,

1 4
Road, Bangalore-1. Habibulla Avenue, Chennai-4.
M/s. Shri Venkateswara Products
M/s. Andhra Pradesh Mining
Vadakku Venganallur, Opp. Raju's
2 5 Corporation 6-3-672, Punjagutta,
College, Mudangiar Road,
Hyderabad-82.
Rajapalyam, (Tamil Nadu)
M/s. Madras Mineral Suppliers
M/S.RAJA MINIING WORKS,
3 No.2/10, Toovipuram, Tuticorin-3, 6
Ariyalore, Trichi,T.N
Tamil Nadu.