A Feasibility Report on Granite Cutting & Polishing Plant

PROJECT AT A GLANCE 1 2 3 4 5 6 7 8 NAME OF THE UNIT TYPE OF PROJECT SECTOR CONSTITUTION LINE OF ACTIVITY INSTALLED CAPACITY UTILISATION CAPACITY @ 60% NAME AND ADDRESS OF ENTERPRENEUR XXXX GRANITE MINERAL BASED SMALL PROPRIETORSHIP CUTTING AND POLISHING OF GRANITE BOULDERS 1.20.000 Sq,Ft Per Annum 84,000 Sq,Ft Per Annum DURGA RAO HAYATH NAGR , HYDERABAD 500080

9 10 11 12 13 14 15

TOTAL PROJECT COST COST OF PRODUCTION PER ANNUM SALES REVENUE PER ANNUM NET PROFIT PER ANNUM BEFORE TAX NET PROFIT RATIO RATE OF RETUN ON INVESTMENT BREAK EVEN POINT

A Feasibility Report on Granite Cutting & Polishing Plant

INTRODUCTION

A Feasibility Report on Granite Cutting & Polishing Plant

INTRODUCTION

Granite technically refers to a light-coloured granulose plutonic rock composed of felspars, plagioclase, quartz (felsic minerals) and minor amounts of mafic minerals,s u c h a s b i o t i t e , h o r n b l e n d e , p y r o x e n e , i r o n o x i d e s , e t c . B u t , i n t h e c o m m e r c i a l parlance, the term granite has become synonymous with all those crystalline rockswhich have pleasing colours, strength to bear the processes of quarrying and cutting& polishing and are used commonly for decorative purposes. Being more resistant towear and tear as well as weathering, granite is most sought-after stone to be used as building as well as decorative stone. The fascination for granite is due to its takingmirror-like polish, high compressive strength, longevity and beauty. India possessesenormous deposits of all types of dimension stones. It is one of the largest producersof dimension stones in the world. The dimension stone industry employs over onemillion workforce. This industry plays a vital role in the economy of states like TamilNadu, Andhra Pradesh, Karnataka and Rajasthan.Rural economy of many developings t a t e s l i k e M a d h y a P r a d e s h , U t t a r P r a d e s h , O r i s s a a n d N o r t h E a s t e r n S t a t e s i s dependent on this industry.The granite used for decorative purposes is a costly material in comparison with othermaterials. Hence, its utilisation and trade within the country has been at a low profilecompared with the exports. With the emergence of the rich middle class and spurt inconstruction activity, the internal trade is on the rise.Although granite is a minor mineral, it is a major contributor in foreign exchangeearnings. India is the second largest exporter of raw granite after China and ahead of Brazil and South Africa. India ranked fifth in the export of processed (value addedfinished) product. RESOURCES. India is endowed with abundant resources of a wide variety of grani t e . A s o n 1.4.2005, resources of granite dimension stone of all types are estimated at 37,426million cubic metres. Of these resources, 1,130 million cubic metres (about 3%) fallin reserves category while remaining 36,296 million cubic metres or about 97% fall inresources category.Gradewise classification reveals that about 8% resources fall under black granitew h i l e 9 1 % u n d e r c o l o u r e d g r a n i t e . A b o u t 1 % r e s e r v e s a n d r e s o u r c e s a r e o f unclassified grade.Under reserve category, about 23 million cubic metres of all grades fall under provedcategory while 1,162 million cubic metres fall under probable category.Statewise breakup of resources reveals that Karnataka with about 25% resources isl e a d i n g f o l l o w e d b y J h a r k h a n d ( 2 4 % ) , R a j a s t h a n ( 2 3 % ) , A n d h r a P r a d e s h ( 6 % ) , Madhya Pradesh (5%) and Orissa (5%) which together accounted for 88% resources.With regards to reserves, about 93% reserves are located in Madhya Pradesh (86%)and Orissa (7%).

A Feasibility Report on Granite Cutting & Polishing Plant

THE MARKET PROPECTS Granite known as King of Stones because of its inherent characteristics such asextra fine mirror polish, scratch free glossy surface and durability. Indian granite hasb e c o m e t h e m o s t s o u g h t a f t e r a n d e x t e n s i v e l y u s e d s t o n e m a t e r i a l i n b u i l d i n g constructions and massive structural works throughout the world and is well known inthe international market not only for its elegance and aesthetic quality but also for itsdurability.T h e usage of granite tiles and slabs is increasing a s t h e c o n s t r u c t i o n a c t i v i t y i s growing up. There is huge market potential for granite monuments in overseas. Slabsof fine finish are also being exported form our district. As there are large graniterecourses in our district, the cutting and polishing activity becomes good investmentdecision. Project Demand. The rapid development of urban areas, high-rise buildings, housing complexes, malls,governmental and non governmental buildings make use of granite for both theirinteriors and exteriors. Once limited to the wealthy, granite has now become a part of t h e c o m m o n p e o p l e s u s e b e c a u s e o f t h e s u p p l y o f g r a n i t e f r o m t h e n e w g r a n i t e industries.

A Feasibility Report on Granite Cutting & Polishing Plant

BASIS AND PRESUMPTIONS

A Feasibility Report on Granite Cutting & Polishing Plant

BASIS AND PRESUMPTIONS

It is assumed that the unit will operate on Two shift basis for 2 5 working days a month and 300 working days in a year. The Installed capacity of the unit is 1,80,000 Sq Ft per annum if theplant runs overall day. 60% capacity utilization is considered on two shift running. Raw materials are supplied from different destinations. Raw material cost includes transportation charges. The materials are supplied to thesite. T h e s a l a r i e s a n d w a g e s f o r s t a f f a n d l a b o u r h a v e b e e n t a k e n i n t o consi deration on the basis of prevailing market rates and MinimumWages Act. Interest on term loan has been taken at the rate of 14% o n a n average. This rate may vary depending upon the policy of the financialinstitutions/agencies from time to time. The cost of plant and machinery, Raw materials, selling price of finishedproducts etc. are the prices collected at the time preparation of projectreport and may vary depending upon location, manufacturers, marketand other various reasons.

A Feasibility Report on Granite Cutting & Polishing Plant

FEASIBILITY STUDY

A Feasibility Report on Granite Cutting & Polishing Plant

INTRODUCTION
Feasibility literally means whether some idea will work or not. It knowsb e f o r e h a n d w h e t h e r t h e r e e x i s t s a s i z e a b l e m a r k e t f o r t h e p r o p o s e d product/service, what would be the investment requirements and where toget the funding from, whether and wherefrom the necessary technical know-how to convert the idea into a tangible product may be available, and so on.As feasibility study is a multivariate concept, I have studied all the aspects toassess our proposed project to be viable not only in technical terms but alsoin economic and commercial terms too.

In this study, I put my intention on all the facets of the feasibility of theproposed project viz., marketing, technical, financial, economic and legal. MARKET ANALYSIS A market, whether a place or not, is the arena for interaction amongbuyers and sellers. From sellers point of view, market analysis is primarilyconcerned with the aggregate demand of the proposed product/service inf u t u r e a n d t h e m a r k e t s h a r e e x p e c t e d t o b e c a p t u r e d . S u c c e s s o f t h e proposed project clearly hinges on the continuing support of the customers.However, it is very difficult to comprehensively identify the market for onesp r o d u c t / s e r v i c e . I n v i e w o f t h i s , I h a v e t r i e d m y l e v e l b e s t t o a s s e s s t h e market for Industrial fasteners. For this, we formed as a team and conductedsurvey in Srikakulam, Vizianagaram and Visakhapatnam Districts. We havecovered mainly the Industrial sectors in these districts. We have taken intoconsideration the following aspects and compile the information which wascollected: Consumption trends. Past and present supply position Production possibilities and constraints Imports and Exports Competition Cost structure Elasticity of demand C o n s u m e r b e h a v i o u r , i n t e n t i o n s , m o t i v a t i o n s , a t t i t u d e s , pre ferences and requirements Distribution channels and marketing policies in use Administrative, technical and legal constraints impinging on themarketing of the product.

A Feasibility Report on Granite Cutting & Polishing Plant

TARGETTED MARKET AND CUSTOMERS For granite slab & tiles, there is good domestic market. Slabs with fine finishand monuments of different colours, colour patterns and design have exportmarket. we want to concentrate on both domestic and international market.To achieve this, we want to market our product at a cost effective mannerand supply the customers the high quality product. The very next, we wouldplan to supply our product to renowned Distributors and Dealers and alsotraders in this field. UNIT LOCATION I am planning to start this unit at an open plot located near Narasingupalliv i l l a g e o f K o t a b o m m a l i m a n d a l . O u r p r o p o s e d l o c a t i o n i s v e r y n e a r e r t o Golden Qudratal National High Way. Transport facilities are not at all a burdent o t h i s l o c a t i o n . M a j o r T r a n s p o r t o p e r a t o r s a r e h a v i n g f r a n c h i s e e s i n Narasannapeta town. It helps us easy transportation of raw materials whichwould be procured the surrounded area of Tekkali. Final product can also been transported and delivered to any location from our proposed location.Because of these potential advantages, I have chosen location of unit for myb u s i n e s s . C o n c e r n i n g w i t h G o v e r n m e n t f r i e n d l y d e c i s i o n s t o w a r d s entrepreneurship development, there are so many concessions and subsidiesare offered particularly to MSME sector. By starting this unit at this location, Ican avail Investment subsidy and other concessions form State Governmentas per Industrial Investment Promotion Policy (IIPP) 2010-15. PROPOSED NAME OF UNIT We would like to name the production unit as

JET GRANITES
TECHNOLOGY & ENGINEERING PROCESS DETAILS The processing of granite dimension stones essentially involves the following majoroperations: quarry opening; blasting; cutting; polishing and ornamenting. Quarrying for dimension stone requires a specialized method of extraction. Normalq u a r r y i n g m e t h o d s u s e l a r g e q u a n t i t i e s o f e x p l o s i v e s t o m o v e h u g e v o l u m e s f o r breaking down into aggregate. This creates cracking throughout the stone, whichr e n d e r s it unsuitable for this purpose. Many a dimension stone quarry has b e e n rendered useless by the over use of explosives.W i r e s a w i n g i s u s e d f o r primary block extraction. The s y s t e m c o n s i s t s o f a l o n g stranded wire or diamond tipped wire fed through a series of pulleys and assisted byabrasives. Stranded

A Feasibility Report on Granite Cutting & Polishing Plant wire has been used for many years in marble and sandstone, whilst improvements in diamond technology, has seen the recent introduction of wiresawing in granite quarries. The yield from wire sawing is much higher and gives a semi finished surface which allows a close examination of the material before furtherworking.Cutting is performed by a gang-saw for producing granite slabs. Gang sawing uses areciprocating frame with up to 120 steel blades working theirs way through the block.It can take up to one week to saw each block.Surface finishing or polishing of shaped marble blocks by rubbing beds and polishingmachines in order to attain attractive color and uniform texture,

PROCESS FLOW CAHRT

A Feasibility Report on Granite Cutting & Polishing Plant

A Feasibility Report on Granite Cutting & Polishing Plant

FINANCIAL ANALYSIS FINANCIAL ASPECTS A. FIXED CAPITAL1 . L A N D & B U I L D I N G

A Feasibility Report on Granite Cutting & Polishing Plant