Project Report
On
Binding Wire , Nails , Tagari &
GI Wire Fancing
By
M/s Bright Wire Company.
Plot No. - S3 / 119 and 120
Kalunga Industrial Estate
Rourkela
WIRE DRAWING
1. INTRODUCTION:-
Drawing of wire from metal rod is a metal working process that reduces the cross-section and
elongates in to wire. During wire drawing the volume of metal remains the same and hence
there is increase in the length of the drawn wire. A significant advantage of drawing is that there
is very little material waste. It is carried out by pulling the metal rod through a single or a series
of the drawing dies. In the case of series of drawing dies, the each subsequent drawing stage
uses smaller bore diameter than the previous drawing die. The draw ratio of diameter depends
on elongation and plastic de-formability of metal ;
Drawing is usually performed in round sections at room temperature, however, it is also
performed at higher temperatures for large wires to reduce forces.
2. PRODUCT & ITS APPLICATION:-
Wire/rod drawing is an important industrial process, providing commercial products. Wire
products cover a very wide range of applications which include smaller diameter rods used for
shafts of different diameter for machine and wire rods for structural components, blanks for
bolts, rivets, nails screws, fences, spring wires pins, staples, needles, and many others.
Commercial wire drawing usually starts with a coil of hot rolled 6mm to 9 mm diameter wire.
The surface is first treated to remove scales. It is then fed into a wire drawing machine which
may have one or more blocks in series. Wires are drawn from Low Carbon steel, alloy steel,
stainless steel, etc. ferrous metals as also from aluminum, copper, brass, bronze and many other
alloys. Nonferrous wires are used in electrical power transmission, viz. wires and cables,
electronics systems and even in semiconductor IC etc. packaging, motor and transformer
windings.
3. DESIRED QUALIFICATIONS FOR PROMOTER:-
The Project is being promoted by a dynamic lady having vast experience in the field of Wire
Products.
4. MARKET POTENTIAL AND MARKETING ISSUES IF ANY :-
Construction, machinery and automotive markets especially present significant opportunities
for steel wire. Steel wires are also used in a range of infrastructure constructions and many
general engineering applications in machinery and heavy equipment and marine industry. In
the automotive industry, steel wires are used for reinforcing tires to add to their strength and
durability. Steel binding wires are used to bind and fabricate complex steel reinforcement
structures for building of all types. Steel wire is of critical importance in automotive
manufacturing for controls, the projected increase in infrastructure and housing construction
and Automobile sector in the coming years is expected to benefit demand for steel and other
metal wire industry. Steel wire finds mission critical use in this sector as drilling lines,
geophysical cable, offshore mooring ropes and electromechanical cable, and for mooring
anchoring, towing, and lifting applications. There is a plethora of growth opportunities for
Indian steel wire market.
Rapidly expanding construction, infrastructure, telecom and manufacturing industries bode
well for the Indian steel wire market.
5. RAW MATERIAL REQUIREMENTS:-
Various grades of steel wire rods are required. These are available from 6 mm to 9 mm diameter
size. Normally 6 mm wire is procured for drawing. Other Raw Materials consist of lubricant
powder soaps of different grades and fuel for annealing furnace.
6. MANUFACTURING PROCESS:-
Coating:- The surface of the bar or coil is coated with a drawing lubricant to aid cold
drawing.
Pointing:- Several inches of the input end of the bar or coil is reduced in size by
swaging or extruding so that it can pass freely through the first drawing die.
Drawing:- The drawing machine pulls or draws the lead wire bar or coil through the
die in single or multiple stages. The die reduces the cross section of the bar
or coil, shapes the profile of the product and increases length in each stage.
In multi-pass drawing wire passes through smaller and smaller dies.
Material may require annealing to soften the material and increase ductility,
after certain stage between drawing pass to remove hardening and
brittleness due to cold work.
Finished Product:- The drawn product passes through final finishing die to get bright and/or
polished finish. Heat treatment is generally used to soften the material, to
modify the microstructure, improve mechanical properties and the
machining characteristics and get precise and uniform dimensional
tolerances. The finished product is tested for tensile and hardness testing,
and measuring of the diameter. In case of drawing of stainless steel or other
materials, wire/rod has to be inspected and /or treated. Surface preparation
is done by pickling in acid (ferritic and martensitic steels) or basic solutions
(austenitic steels). The prepared skin is then coated with lubricant. Cold
drawing is carried out through diamond dies or tungsten carbide dies till
the desired diameter is achieved.
Packing :- Finished Products are than packed into a uniform pack size of 25 to 50 Kg
and wrapped in foil paper to batter look and moisture protection for batter
marketability .
WIRE NAILS
Introduction :-
Wire nail is very well known item, as it is very common product, which is normally used in daily life. It
is used for fastening purpose. Its use is so wide spread that it has become part and parcel of the life.
Wire nails are pin-shaped, sharp objects of hard metal or alloy used as fasteners. They are typically
made of steel, often dipped or coated to prevent corrosion in harsh conditions or improve adhesion.
Ordinary nails for wood are usually of soft, low carbon or mild steel while those for concrete are
harder. Nails are used for various purposes and industries ranging from building and construction to
carpentry. There is a tremendous variety of nails, since they are used for so many different purposes.
There had been an erratic growth of the indigenous industry from past years. Since the manufacture of
wire nails could be undertaken on a small scale or even on a cottage scale, there is a mushroom growth
of nail making units in operation. Future of wire nails will directly depend upon building activity in
country. As we know that at present country is facing acute housing problem. So, now government is
much emphasising on housing development, which naturally will lead to greater demand of wire nail.
Thus, as an entrepreneur this project offers an exciting opportunity to you.
Wire Nails :-
Wire nail are used to join many things in industries and in other domestic items. The are made of hard
carbon wire. These are Hattened on one end and sharp at another end. The head is used for hammering
and sharp end help in penetrating into the object which is to be joined. Wire nails used to join small
items. These are of different sizes. Wire drawing of metal is also somewhat related to wire nails. First
wires is drawn by machines at high speed. At present, maximum wire drawing speed is som/sec, in
medium and fine wire range 60 to 65 m/sec. Some industries are also draw at the speed of 80m/sec. It
has been found however that at very high speed the relation between the technical requirement and the
increased productivity is no longer on a sound economic level. High charging speed will required on
extremely high quality of starting material dies and drawing lubricants using conventional take up
spools of higher standards and precisely balanced. In order to overcome this practical limit and to
eliminate the disadvantage of the excessively high drawing speeds, multiwire drawing machine have
been developed for other uses than just for on more wires are simultaneously drawing 2-3-4 on more
wires are simultaneously drawn, annealed and spooled the definite number of wire depending on
their further use.
GI WIRE FENCING
Introduction :-
GI Wire of Desired thickness as obtained will be used for Making Garden Chain Link Fencing , Nails
and Barbed Wire . These are very well known item, as it is very common product, which is normally
used in daily life.
Wire Chain Link Fencing :-
Wire Chain Link Fencing , Nails and Barbed Wire are used in industries as well as for domestic
Purpose . These are made of GI / Electro Plated Wire .
Promoter :-
The Project is being Promoted by Smt. Manju Agrawal , as Proprietor of the Unit . The
Proprietor is a member of well known Business family of the Industrial Town of Rourkela who are in
business since last 45 Years . Smt Manju Agrawal is an Experienced Business women in the field of
Nails Manufacturing and having a past experience of 7 years.
Production Process :-
Nail making require advanced knowledge and technique, however the manufacturing capacity can
freely be fixed according to the demand in the locality. The plant can be built at any place without
environmental restraint. The nail making plant can easily be expanded, rationalized, automated or can
adopt a labour saving device.
Manufacturing of nails passes through the following steps. –
1. Feeding of wire coil to nail making machine –
2. Forming the bottom and top portion of nail and cutting on the nail making machine
manufacturing of flat head nails ends here –
3. Manufacturing of the nail head on a washer making machine –
4. Punching of the head to the nail and pressing to umbrella shape –
5. polishing of head part - Feeding the head to the nail making machine –
Civil Engineering Cost :-
For the processing plant, stores and service rooms a building of 9800 Sq.Ft. is required. Cost of building
is estimated at Rs. 46,00,000/-. Provision is required to be made for adequate open space for movement
during operation and future expansion possibilities. The plant requires a total of 60 Decimal of land
suitably at the Industrial Area. For this purpose a suitable Land and Industrial Shed with area
Measuring Ac. 0.60 rec. has been acquired from Industrial Development Corporation of Odisha
(IDCO).
The Land Bearing Plot No. S3/119 and 120 corresponding to Revenue Khata No. 65 , Revenue Plot No.
417(P) of IDCO’s Industrial Estate , Kalunga is being developed for the purpose of establishing the
project .
The Civil Work like Boundary Wall , Factory Shed 3 Nos. Office Building and other amenities like
Water Pump Boring , Overhead and underground Water Storage Tank and Internal Road work is been
undertaken .
Human Resource :-
The human resource requirement is shown in Table:-
Human Resource Requirement
Position Qualification No Salary Total Salary per
Per/person/ year
month
A. Wire Drawing
1. Electrical Manager Elec. Eng. 1 15,000 1,80,000.00
2. Drawing Technicians Skilled 2 12,500 3,00,000.00
3. Operator Technicians Semi-Skilled 2 9,000 2,16,000.00
SUB TOTAL 6,96,000.00
B Annealing Furnace
1. Furnace Operator Skilled 1 15,000 1,80,000.00
2. Loader,Crane Operator Semi-Skilled 1 12,500 1,50,000.00
4. Packing Unskilled 2 8,000 1,92,000.00
SUB TOTAL 5,22,000.00
C Production Nails
1. Manager Mech. Eng. 1 15,000 1,80,000.00
2. Nail Making Technicians Skilled 2 12,500 3,00,000.00
3. Nail Polishing Technicians Semi-Skilled 1 9,000 1,08,000.00
4. Nail Packing Unskilled 2 7,000 1,68,000.00
5. Maintenance staff Mech /elect 1 12,500 1,50,000.00
SUB TOTAL 9,06,000.00
D Production Tagari
1. Manager Mech. Eng. 1 20,000 2,40,000.00
2. Sheet Cutter Skilled 2 12,500 3,00,000.00
3. Press Operator Skilled 2 10,000 2,40,000.00
4. Polisher Semi-Skilled 2 7,000 1,68,000.00
5. Maintenance staff Mech /elect 1 12,500 1,50,000.00
SUB TOTAL 10,98,000.00
E Support Staff
1. Manager Skilled 1 25,000 3,00,000.00
2. Store Cleark Skilled 2 8,500 2,04,000.00
3. Security Guard Semi-Skilled 3 7,000 2,52,000.00
4. Office Staff 2 12,000 2,88,000.00
SUB TOTAL 10,44,000.00
TOTAL 42,66,000.00
BENEFITS 2,34,000.00
GRAND TOTAL 95 45,00,000.00
Training :-
All operators need basic training so that they can be acquainted to the operation. This can be done
during the commissioning period of the plant. Adequate Budget is allotted for his purpose on annual
basis and it is included in the working capital.
Financial Analysis:-
Underlying Assumption :-
The financial analysis of Project is based on the data provided in the preceding discussions and the
following assumptions:-
A. Construction and Finance :-
Construction period : 6 Months
Source of finance : 60% equity and 40% loan
Bank interest rate : 12 % Per Annum
Value of land : Rs. 36.50 Lakhs
B. Depreciation :-
Plant Building 10 %
Machinery and equipment 10 %
Office furniture 10 %
C. Working Capital (Minimum Days of Coverage) :-
Raw Material Local 10 Days
Raw Material-Foreign Not Required
Factory Supplies 10 Days
Spare Parts in Stock and Maintenance 10 Days
Work in Progress 10 Days
Finished Products 10 Days
Accounts Receivable 10 Days
Accounts Payable Nil
Investment:-
The total investment of the project including working capital is estimated at Rs. 505.00 Lacs. Owners
are assumed to contribute of the finance in the form of equity and / or Quasi Capital to that of financed
by long-term bank loan to be in the Ratio of 3::2 .
The details are shown in Table :-
TOTAL INITIAL INVESTMENT
Items :- Cost :-
Land 36,50,000
Building and Civil Works 46,00,000
Office Equipment 2,00,000
Plant Machinery & equipment 225,00,000
Electrical Installation 20,00,000
Total Fixed Investment 3,29,50,000
Pre production capital expenditure 5,50,000
Total Initial Investment 3,35,00,000
Working Capital requirment 1,70,00,000
Total 5,05,00,000
TOTAL MEANS OF FINANCE
Items :-
Promoters Capital 2,05,00,000
Term Loan from Bank 2,00,00,000
Working Capital Finance 1,00,00,000
Total 5,05,00,000
Financial Evaluation:-
I. Profitability:-
According to the projected income statement the project will generate profit beginning from
the first year of operation. Important ratios such as the gross net profit to total sales in the
first year is 5.81 % and are gradually rising to 6.16% in Forth Year. The income statement and
other profitability indicators show that the project is viable.
II. Breakeven Analysis:-
The breakeven point of the project is estimated by using income statement projection.
Accordingly, the project will break even at 38.79 % of capacity utilization.
III. Payback Period:-
Investment cost and income statement projection are used in estimating the project payback
period. The projects will payback fully the initial investment less working capital in 3.5 years.
IV. Simple Rate of Return:-
Simple rate of return refers to the ratio of net profit plus interest to the total capital invested
for a single year at full capacity operation. For the envisaged plant this equals to 18.14%..
V. Internal Rate of Return and Net Present Value:-
Based on cash flow statement the calculated IRR of the project is 22.89% and the net present
value at 22 % discount is Rs. 10.28 Lacs.
VI. Economic and Social Benefit and Justification:-
Based on the foregoing presentation and analysis, we can learn that the proposed project
possesses wide range of benefits that complement the financial feasibility obtained earlier.
These benefits are listed as follows:-
A. Profit Generation:- The project is found to be financially viable and earns a total profit
of 662.95 Lakhs in Seven Years . Such result induces the project promoter to reinvest the
profit which, therefore, increases the investment magnitude in the economy.
B. Tax Revenue:- With an increase in profit, both tax revenue and the tax base of the
economy improves. Such result create additional fund for the government that will be
used in expanding social and other basic services in the economy. Excluding the
multiplier effect, this project alone will generate Rs. 198.88 Lakhs of Direct Tax and
approx Rs. 1000 Lakhs of GST tax revenue for the government.
C. Import Substitution and Tax Saving:- The analysis revealed the presence of strong
dependence on imported Materials from Nearby States of Chattisgarh and Jharkhand.
Thus, witch the advent of this project a portion of the import burden will be relieved.
That is, based on the projected figure we learn that in the project life an estimated amount
of Rs. 1000 Lakhs will be Generated in the form of Tax ( GST ) to our State. This will
create room for the saved hard currency to be used in other vital and strategic sectors.
D. Employment and Income Generation:- The proposed project is expected to create
employment opportunity to several citizens of the country. That is, it will provide
Directly and indirectly employment to 100 Persons.
List of Plant and Machineries :-
1. Wire Drawing Machine :-
2. Nails Making Machine :-
3. Nails Polishing Drums :-
4. Grinding Media :-
5. Pit Type Annealing Furnace :-
6. Hydraulic Press 200 T Capacity :-
7. Binding Wire Machine :-
Process Flow Chart for Wire Drawing and Nail Making :-
Procurement of Raw
Material , Inspection and
proper storage at Raw
Material Godown.
`
Respooling of Coil with
the help of Spooling
machine
Drawing of Wire to
required thickness in
Wire Drawing Machine
and spooling of coil.
Nail making process to Wire Annealing in
be completed at Nail Furnace
machine
Nail Polishing and Redrawing of Wire in
inspection. Drawing Machine
Nails Packing with Wire Annealing in
weighment and stacking Furnace.
at finished Product
Godown.
Packing with
weighment and stacking
at finished Product
Godown.
FACTORY LAY OUT PLAN :-
Main Gate Office Building Electric
Installation
Finished Product Storage Godown
Wire Drawing Shed ( Size 60’ X 40’ ) Nail Making Shed ( Size 60’ X 40’ )
Main Shed with OH Crane for
: Material Unloading
: Binding Wire making Machineries Size 180’ X 50’
: Wire Annealing Dry type Furnaces
: Wire Packing Unit
Weigh Bridge
5Mt Capacity
Spares Stores Labour Rest Chain Link Fencing and Barbed Wire Making shed
Room and
Urinals
List of Plant & Machinery
Particular Supplier Estimated Cost
1. Bull Block Two Set containing 6 Block each Nihar Machine
with Protection Chember , Take up unit ,
Descaling , Straightening Unit , Motor and
AC Variable Frequency Drive of Mitsubishi
make Complete .
2. Protection Chember for Two Nos of Bull Bhubneswar
Block.
3. Take up unit for each Bull Block Unit .
4. Take up unit for each Bull Block Unit ,
Descaling , Straightening Unit , Motor and
AC Variable Frequency Drive of Mitsubishi
make Complete .
Take up unit for each Bull Block Unit , Descaling ,
Straightening Unit , Motor and AC Variable
Frequency Drive of Mitsubishi make Complete .
Take up unit for each Bull Block Unit , Descaling ,
Straightening Unit , Motor and AC Variable
Frequency Drive of Mitsubishi make Complete .
