disperse dyes d · project profile disperse dyes isperse dyes are organic colours which are applied...
TRANSCRIPT
Project profile
Disperse dyes
isperse dyes are organic
colours which are
applied from near
colloidal aqueous dispersion to
textile fibers in which the dyes
literally dissolve to produce the
desired colouration. The major
chemical dyes of disperse dyes
are simple azo, anthraquinone and
nitroarylamine. These are the new
fast growing field of dyes important
for synthetic fibres. With the
demand far outstripping the supply
and a good export market there is
adequate scope for a new unit to
come up in this field.
This detailed project profile
is prepared basically to give a
preliminary idea to the
entrepreneur regarding various
aspects of this project in a
nutshell. Data from this report can
be used for carrying out various preliminary
formalities with Government Departments such as
allotment of land, registration with DGTD, registration with
Secretariat of Industrial Approvals or obtaining a letter of intent
once the entrepreneur has made up his mind to go ahead with this project.
D Disperse dyes
account for
almost all the dyeing of
cellulose acetate
and polyethylene tetraphthalate textile fibres.
They are used in the dyeing of
polyester and polyacrylonitrile
fibres.
The various points discussed in this profile include:
1. Market potential in terms of past trends and/or end-use pattern.
2. Estimates of requirements and cost of land, buildings and other civil works.
3. Estimates of requirements of plant and machinery, know-how, other
miscellaneous assets, their costs and availability, etc.
4. Requirements of raw materials-indigenous and imported, their availability and
costs and other inputs such as water, fuel, power, etc.
5. Manpower requirements and employment potential.
6. Estimates of administrative and factory overheads.
7. Estimation of cost of project and means of financing.
8. Estimation of cost of production and profitability analysis.
9. Estimation of pay-back period and break-even point, etc.
The study establishes technical feasibility and economic viability of the
project. Ensuing sections of this project profile discuss various aspects of this project.
Product description, uses and applications
Disperse dyes are essentially low
molecular weight derivatives of azo,
anthraquinone and other compounds.
They melt at above 1500 C and are
crystalline materials which are ground
with dispersing agents to produce
particles of 0.5 - 2U in size and which
produce a stable dispersion in the dye
bath. They are essentially non-ionic in nature and contain aromatic or aliphatic
amino, mono and disubstituted flmino and hydroxy groups in their molecular
structure. They have relatively low solubility in
water under the dyeing conditions but it is at
least 0.1 mg/litre.
Disperse dyes account for almost all the
dyeing of cellulose acetate and polyethylene
tetraphthalate textile fibres. They are used in
the dyeing of polyester and polyacrylonitrile
fibres.
Disperse dyes are organic colours mainly amino anthraquinone derivatives
and basic azo compounds, brought into a finely divided condition by grinding with
suitable dispersing agents. Initially developed
for dyeing acetate, this range of dyes are
also important for the colouring of nylon and
many of the newer synthetic hydrophobic
fibres. The newer fibres have a more
compact molecular structure than the
secondary acetate. Disperse dyes may be
considered as forms solid solutions in
the hydrophobic fiber, they have little
affinity towards water, and eventually migrate toward, and diffuse into the organic
fiber.
The fastness properties of this range of
dyes will vary depending upon the fiber to which
they are applied. Wetfastness properties will
generally be better when they are applied to the
newer hydrophobic fibres, e.g. polyesters or
triacetate, than when they are dyed on
secondary acetate or nylon.
Many blue and violet dyes of the
anthraquinone type are subject to gas fading.
The shades turn pink when exposed to nitrogen oxides normally present in the
atmosphere. This tendency to turn pink is most noticeable when the dyes are applied
on secondary acetate, and to a lesser extent on triacetate. The shade change may
be minimised by treatment of the fabric with a protective agent such as
diethanoloamine or melamine derivatives.
A number of dyes are also sensitive to sublimation, which must be used when
dyeing fibres such as triacetate or polyesters.
In addition to the use of disperse dyes in textiles, they are also used in other
sectors of industries for making the articles and products attractive.
They are used in the surface colouration of plastics, and also in paper, and
chemical industries particularly chemicals in treating metals for providing attractive
colours. These dyes are used where the uniform colouration of the fiber is of value in
masking.
The suitability of disperse dyes in discharge/resist printing on polyester are
given below:
Suitability of Disperse Dyes in Discharge/Resist Printing on Polyester
C.I. Disperse Zn (HSO2CH2O)2 Sncl2 CuAc WD CD WD CD WD CD
1. Yellow 1 + - - -
2. Yellow 3 + - - +
3. Yellow 7 + - + - - +
4. Yellow 23 + - - + - -
5. Yellow 42 + - + - - +
6. Yellow 56 + - + - - +
7. Yellow 64 - - - + - +
8. Yellow 83 - - - +
9. Yellow 124 - - - +
10. Yellow 229 + - + - - +
11. Orange 13 + - + - - +
12. Orange 25 + - + - - +
13. Orange 30 + - + - - +
14. Orange 44 + - + - - +
15. Orange 61 + - + - - +
16. Red 4 - - - + + -
17. Red 11 - - - + + -
18. Red 50 + - + - - +
19. Red 54 + - + - - +
20. Red 60 - - - + + -
21. Red 73 + - + - - +
22. Red 91 & 92 - - - + + -
23. Red 106 + - + - - +
24. Red 118 + - + - - +
25. Red 159 - - - + + -
26. Red167 + - + - - 0
27. Violet 8 - - - + + -
28. Violet 26 - - - + + -
29. Violet 33 + - + - - +
30. Violet 100 + - + - - +
31. Blue 26 - - - + + -
32. Blue 35 - - - + + -
33. Blue 56 - - - + + -
34. Blue 81 - - - + +
35. Blue 83 - - + + - -
36. Blue 79 + - + - - -
37. Blue 87 - - - + - -
38. Blue 94 + - + - - +
39. Blue 109 - - - - - -
40. Blue 183 + - + - - +
41. Blue GEL + - + - - -
42. Black BL - - - - - -
+ = Suitable, - = Not Suitable
WD = White discharge
CD = Colour discharge
Market Survey
There are 14 units in the organised sector engaged in the manufacture of
disperse dyes with a total installed capacity of 2076 tones per annum. The installed
capacity and production are given below.
(Quantity in MT, Value in Rs. Lakhs)
Year Units Installed Cap. Production Vallie
1990 10 1823 947 1503.
1991 12 2323 1123 1854
1992 12 2323 1192 2007
1993 12 2323 1603 2898'
1994 13 2323 1487 28381
1995 14 2323 2076 4559'
1996 14 2076 2100 4605
1996-97 1977*
*Excluding production of Ultramarine Blue.
The various units that are producing disperse dyes are given below:
1. M/s Arnar Dye-chern Ltd., Rang Udyan, Mahirn, Mumbai - 400016.
2. M/s Arlabs Ltd., 6 India House, W.H. Marg, Fort, Mumbai - 400001.
3. M/s Atic Industries Ltd., Atul - 396 020. Dist. Valsad.
4. M/s Atul Products Ltd., Atul - 396020, Valsad.
5. M/s Chemiequip Ltd., 501 Embassy Centre, Nariman Point, Mumbai -
400021.
6. M/s Colour Chern Ltd., Dinshaw Vachha Road, 194, Churchgate
Reclamation, Mumbai - 400020.
7. M/s Nirup Synchrome Ltd., 802 Paigah Plaza, Basheer Bagh, Hyderabad -
500029.
8. M/s RathiDyechemPvt. Ltd., 14 Nariman Bhavan, 227, Nariman Point,
Mumbai - 400021.
9. M/s Sandoz (India) Ltd., Sandoz House, Dr. A.B. Road, Worli, Mumbai -
400018.
10. M/s Universal Dyestuff Industries Ltd., P.O. Sakarda - 391350.
11. M/s Ajay Dye-chern Industries, 11 Abhishek, 303-307 Samuel Street, Mumbai
- 400003.
12. M/s Dipika Colour Industries Pvt. Ltd., 3072, Surat Textile Market, Ring Road,
Surat.
13. M/s Colden Dyes Corporation (India) Pvt. Ltd., 626 Dadar Parsi Colony,
Mumbai - 400005.
14. M/s Karasmaneck Chemicals Pvt. Ltd., 626 Dadar Parsi Colony, Mumbai -
400014.
15. M/s Laxsons Dyes & Chemicals Pvt. Ltd., 86/12 Tirupati Lane, Kanchan
Nivas, Poona - 411004.
16. M/s R.N. Kanth Dyestuffs & Auxiliaries Pvt. Ltd., Shed No. 2, Pimplewadi,
Girgaon, Mumbai - 400004.
17. M/s Raptokes Brett & Co. Ltd., 47 Dr. Annie Besant Road, Worli, Mumbai -
400025.
18. M/s Serene Dyestuff Industries Ltd., 5145 Tardeo Market Buildin Tardeo Main
Road, Mumbai- 400034.
19. M/s Western Chemical Company, 626 Dadar Parsi Colony, Mumbai - 400014.
The two units that have been registered with DGTD in the recent past are:
1. M/s Bindal Textile Mills Ltd., Bindal House, Old Post Office, Kalbadevi Road,
Mumbai- 400002.
2. M/s JBF Industries Ltd., Unit No. IV, Bindal House, Kalbadevi Road, Mumbai -
400002.
1. Azo-Disperse Deys 208MT Benzanthrone Intermediates/Vat dyes & Disperse dyes
2. Anthraquinone Disperse Dyes 156 MT.
1. Anthraquinone & 600 MT
Exports
There has been a marked increase in the exports of disperse dyes in the last
decade. The exports have increased from 37 tonnes valued at Rs. 18 lakhs in 1990-
91 to 520 tones valued at Rs. 580 lakhs in 1997-98. The increase in exports is mainly
due to the stringent laws enacted in developed countries. India exports mainly to
Bangladesh, Belgium, Republic of China, Indonesia, Kenya, Hong Kong, Sri Lanka,
Italy, Netherlands, Thailand, etc. The exports of disperse dyes are given in the
following table:
Year Quantity (MT) Value (Rs. Lakhs) 1990-91 37 18.40
1991-92 24.00
1992-93 32 11.87
1993-94 44 23.21
1994-95 21 18.46
1995-96 - 50.00
1996-97 74 63.78
1997-98 528 580.54
The climate of Indian exports is improving and demands are picking up with
the western countries facing difficulties in production activities of dyestuff due to
health hazards, environmental pollution and other economic' reasons Viz. shift
towards high technology production, with higher price realisation.
Imports
India imports mainly from China, Federal Republic of Germany, Republic of
Korea, Netherlands, U.K., U.S.A., Japan, Switzerland and Spain. The imports of
disperse dyes are given in the following table.
Year Quantity (MT) Value (Rs. Lakhs) 1991-92 128.75 135.02
1992-93 77.92 91.15
1993-94 88.00 89.90
1994-95 204.45 159.28
1995-96 232.45 223.54
1996-97 109.41 162.91
1997-98 127.13 226.89
Domestic Demand Projections (Fire Scenario)
Cotton still enjoys a very prominent place as the major fiber being used by the
Textile Industry. However, its consumption has remained almost static over the last
decade. The trend is for increased consumption of synthetics and blends. A
consumption pattern of 75% cotton and 25% synthetic is assumed to be achieved by
the end of the VII Plan period. On the current reckoning, it seems that inspite of the
trend towards synthetics, cotton will retain its dominance for year to come. The
following cloth pattern is projected for 2005-2006, 2010-2011 and 2015-2016.
Cloth pattern up to 1999-2000
Fiber 2005-2006 2010-2011 2015-2016
M. meters
% break up
M. meters
% break up
M. meters
% break up
Cotton 10570 70.0 11895 65.0 13200 60.0
Blended/Mixed 2040 13.5 3110 17.0 4400 20.0
Synthetics 2490 16.5 3295 18.0 4400 20.0
Among the synthetics, the growth rate will be highest for polyester followed by
nylon and acrylic.
Demand for Dyestuffs
In projecting the demands, due consideration has been given to the expected
growth in population, the likely growth in the per-capita income, the likely growth of
the consuming industries, the expected Pattern of consumption of different fibers,
and the likely fashion trends.
The progressive orientation towards synthetics and particularly polyester
based textiles has resulted in a phenomenal rise in the consumption of disperse
dyes, and although cotton dyes as a whole dominate the Indian sense, it is the single
class of dyes which holds the highest growth potential in the domestic market. The
demand for various disperse dyes in the coming years is given below.
Demand
Year Yellow/
Oranges
Reds Violets Blues Browns Blacks Total
1999-00 661 777 484 2027 565 861 5375
2000-01 727 855 532 2230 622 947 5913
2001-02 800 940 586 2453 684 1042 6505
2002-03 880 1034 644 2698 752 1146 7154
2003-04 968 1138 709 2968 827 1260 7870
2004-05 1065 1251 780 3265 910 1387 8658
2005-06 1565 1840 1145 4800 1340 2040 12730
The compound growth rate per year of disperse dyes has been taken as 10%
for the period 1999-00 to 2004-05 and 8% for 1994-95 to 2005-2006.
It can be seen that there is a large gap between the existing installed capacity
and the projected demand, hence there is a good potential for new units to come up
in this area.
Manufacturing Process
Each colour of disperse dyes requires different raw materials. Because the
range of colours is very large each colour has its own manufacturing process. The
difference in the processes is primarily in the reaction period.
The general steps involved in the production are:
(a) Diazotisation
(b) Coupler preparation
(c) Coupling
(d) Filteration
(e) Dispersion
(f) Drying
The detailed manufacturing process of celliton scarlet B is given below and
the economics is based on the production of the above said dye.
Some of the important disperse dyes, method of preparation are given at the
end of the article.
A typical azo disperse dye, celli ton sca6rlet B is made by diazotising p-
nitroaniline and coupling with 2-N-(ethyl-anilino) ethanol. Diazotization is the process
of reacting a primary aromatic amine with nitrous acid in the presence of excess
mineral acid to produce a diazo (-N=N-) compound.
For the manufacture of this dye, 152 kg of p-nitroaniline is added to a mixture
of 1500 litres of water and 560 litres of hydrochloric acid (110Be). The contents are
stirred and 1300 kg of ice added. The diagotization is carried out by adding 330 litres
of sodium nitrite (23% solution).
In the meantime 198 kg of 2-N-ethylanilino ethanol is added to 275 litres of
hydrochloric acid (110Be) and stirred for 90 minutes, when the dissolution is
complete. The solution is diluted with 3000 litres of water and 1000 kg of ice added to
bring down the temperature to woe.
The diazo solution is run into the above solution in 2 hours at 10150e. The
contents are stirred for 15 minutes and 2000 litres of water, 200 kg sodium
bicarbonate and 200 kg ice are added in 3 hours. The stirring is continued overnight.
The contents are diluted and filtered.
The actual dye is formed as relatively large particles during the last stage of
its manufacture and in this form it is unsuitable for dyeing. Stabilisation of the
dyebath involves incorporation of large amounts of suitable dispersing agents,
followed by grinding. In one method the dye in the form of the filter cake is mixed with
a concentrated solution of the dispersing agent in water, partially dried or a drum
dryer and converted into a sticky mass. This mass is then fed to rollers situated close
to each other, but rotating at different speeds. The shearing action exerted on the
dye by the rotation of the roller reduces the particle size of the dye. This is followed
by further drying and grinding. In another method, the dye paste is milled in the
presence of a large excess of a dispersing agent and then drying in a spray dryer, in
which the paste is sprayed into a steam of hot air, when the water present is rapidly
evaporated.
Cellulose sulphite waste liquor (lignin sulphonates), condensation products of
naphthalene-beta-sulphonate and formaldehyde, and product obtained by
condensing cresol with formaldehyde in the presence of sodium sulphite and further
condensing with beta-naphthol-6-sulphonic acid are some of the dispersing agents
recommended.
Azo and anthraquinonoid disperse dyes amount to about 85% of all
commercial disperse dyes. Azo disperse dyes are made by diazotising aromatic
amines and coupling with suitable components.
Dyes for synthetic fibres are provided in the form of dispersed powders
(except the cationic types). Dyeing is accomplished by the use of a water dispersion
of the dye together with wetting agent, at about 60-800C. The dyeing operation is
generally through the formation of solid solution involving the dye and the fiber.
Except for pure green anthraquinone dyes for synthetic fibres have quite a broad
spectrum extending from pink through orange, red, violet and blue. Some of the
important disperse dyes and their preparations are shown below:
Anthraquinone Dyes for Synthetic Fibres
Colour Index Name
Commercial Name
Colour on Fiber
Method of Preparation
CI disperse
Red 9
SRA Red VI X Bright bluish
red
Treat 1-anthranquinone
sulfonic acid with
methylamine under pressure
CI disperse
Orange 11
SRA Orange
II
Bright orange nitrate 2-methylanthra-
quinone and reduce
CI disperse
Red 15
SRA Fast
Red VII
Bluish pink nitrate 1-hydroxyanthra-
quinone and reduce with
Na2S
CI disperse
Blue 22
SRA Fast
Blue III
Bright reddish
Blue
react leuco quinizarin with
methylamine and oxidise
CI disperse
Red 4
Disperse
Fast Pink RF
Bright Pink treat purpurin with ammonia
to give 1-amino-2, 4-
dihydroxyanthraquinone and
treat with dimethyl sulfate
CI disperse
Violet 1
Disperse Fast
Red Violet RN
Bright Violet treat quinizarin with
Na2S2O, and NH under
pressure and oxidise with
nitrobenzene
CI disperse
Violet 4
Disperse Fast
Violet 6B
Bright violet oxidise leuco 1, 4-cliamino
anthraquinone with C12 and
treat with CHpH until the
monomethyl derivatives is
formed
CI disperse
Blue 14
Acetate
Blue B
Bright Blue reduce quinizarin to leuco
quinizarin, react with
methylamine and oxidise
CI disperse
Blue 3
Disperse Fast
Blue FFR
Bright Blue condense a mixture of
quinizarin and leuco quini-
zarin with methylamine and
ethanolamine and oxidise.
CI disperse
Blue 34
Blue treat quinizarip and leuco
quinizarin with diethylenegly-
colamine and methyla Ip.ine
under pressure
CI disperse
Blue 23
Acetoquinone
Blue BF
Bright Blue condense quinizarin or leuco
quinizarin with ethanolamine
CI disperse
Red 11
Disperse Fast
Pink FF3B
Bright Bluish
Pink
treat 1-amino-4-bromo 2-
anthraquinone sulfonic acid
with toluenesulfonamide,
followed by Hydrolysis and
methylation
CI disperse
Blue 7
Disperse Fast
Green B
Bright
Greenish
Blue
treat leuco 1, 4; 5, 8-tetra-
hydroxyanthraquinone with
ethanolamine and oxidise
with nitrobenzene
Various intermediates used in the manufacture of disperse dyes are given below:
1. P-Amino acetanilide
2. 1-Amino-4-bromo-2-anthraquinone-sulphonic acid
3. P-Amino phenol
4. 4-Amino xanthopurpurin
5. Aniline
6. Anilino methane sulphonic acid
7. I-Benzamido-4-chloro-anthraquinone
8. 3-Bromo benzanthrone
9. I-Bromo-4-methyl amino anthraquinone
10. I-Chloro-2, 4-dinitrobenZene
11. 2-Chloro-4-nitroaniline
12. 4-Chloro-3-nitrobenzene sulfonyl chloride
13. 2, 2-(m-chlorophenylamino)-diethanol
14. Cresidune
15. o-Cresol
16. p-Cresol
17. 1,4-Diamino anthraquinone
18. 1,5-Diamino anthraquinone
19. 2, 6-Dichloro-4-nitroanioline
20. 1:5-Dihydroxy-4, 8-dinitro anthraquinone
21. N, N-Dimethyl aniline
22. 1, 5-Dinitro anthraquinone
23. 1, 8-Dinitro anthraquinone
24. Diphenylamine
25. Ethanolamine
26. 2-(N-Ethykamino) ethanol
27. I-Hydroxy anthraquinone
28. I-Hydroxy-4-nitro anthraqumone
29. Leuco-1, 4, 5, 8-tetrahydroxy anthraqumone
30. Methylamine
31. 1-Methoxy anthraquinone
32. 3-Methyl-1-phenyl-5-pyrazolone
33. 1-Naphthylamine
34. p-Nitroaniline
35. Phenol
36. p-Phenyl azoaniline
37. Quinizarin
38. p-Toluene sulfoanamide
39. 2, 2-(M-tolyamino) diethanol
Economics of the project Plant capacity and efficiency
The economics of the project is carried out on the basis of a plant capacity of
60 MT per annum of disperse dyes. The unit will operate on one shift basis on a 300
days working schedule in a year. The average plant efficiency is assumed at 85%.
Cost of land and site development
1. Land 700 square metres @ Rs. 150.00 per square metre including
registration charges 1.05
2. Site clearing expenses, 700 square metre land @ Rs. 3/- per square metre
0.02
3. Site levelling expenses, 700 square metre land @ Rs. 4.50 per square metre
0.03
4. Internal roads and external approach road 53m long x 3m wide @ Rs. 450/-
per metre 0.24
Rs. 1.34 lakhs
Cost of Building and Structures
A. Factory Building 1. Factory shed of brickwall construction with PCC flooring with structural steel
supports area 350 sq.m @ Rs. 1800/- per sq.m.
6.30 Sub Total A Rs. 6.30 Lakhs
B. Non-factory Building 1. Administrative and store building of brickwall construction with PCC roofing
and flooring area 50 sq.m. @ Rs. 2000/- per sq.m.
2. Flushing cisterns, wash basins, sewers, septic tank, storm water drains, etc.
3. Boundary wall 9" thick x 6" high x 110" long @ Rs. 300/- per metre
4. Factory gate, watchman's cabin, parking site, etc.
5. Architect's fee
Sub total B Rs. 2.00 lakhs
Total (sub-total A + sub-total B) Rs. 8.30 lakhs
Plant and Machinery (Rs. Lakhs)
S.No. Description No. Reqd. Estimated Cost
A. Imported (CIF)
B. Indigenous
1. Reaction tanks FRP lines fitted with
agitation gear boxes with all
accessories and fittings cap. 2500 lt.
7 2.10
2. Reaction tanks-FRP lines fitted with
agitation gear boxes with all
accessories & fittings cap. 10000 lt.
2 1.50
3. Hydrochioric acid storage tank
rubber lined cap 7500 litres
1 0.75
4. Hydrochioric acid measuring tank
FRP lined capacity 1000 lt.
1 0.25
5. Plate and frame type filter press 24"
x 24" with 24 plates
2 0.75
6. Spray dryer (200 kg/ day cap.) 1 0.50
7. Ice plant complete with all
accessories & fittings etc. cap. 5 tpd
1 3.40
8. Mini pulveriser 50 kg/hr cap. 1 0.20
9. Miscellaneous equipments, etc. 0.50
Sub-total B Rs. 9.95 lakhs
Total (Sub-total
A + Sub-total B)
Rs. 9.95 lakhs
Taxes, duties, packing, forwarding,
freight, insurance, erection and
contingencies
Rs. 1.05 lakhs
Total Rs. 11.00
lakhs
Other Miscellaneous Fixed Assets
A. Electrical and Workshop Equipment 1. Electrical Transformer
2. Switchgear, Cables, Cable Trays, Power Distribution Equipment, etc. 1.00
3. Workshop Equipment including Maintenance and Erection tools and tackles
Sub-total A Rs. 1.00 lakhs
B. Office Furniture and Fixture
1. Executive Tables and Chairs
2. Tables and Chairs for Clerks/Typists 0.20
3. Steel Almirahs, Filing Cabinets, Cash boxes, etc.
Sub total B Rs. 0.20 lakhs
C. Vehicles
1. Scooter for Officers 0.20
Sub total C Rs. 0.20 lakhs
D. Other Assets 1. Weight Bridge at Gate, 5 Tons capacity
2. Platform type Weighing Machines (0-300 kg. cap.) 0.40
3. Air Coolers, fans, etc.
4. Typewriters, Telephones, Wall Clocks, etc.
Sub total D Rs. 0.40 lakhs
Total (B+C+D) Rs. 1.80 lakhs
Preliminary and pre-operative expenses
A. Preliminary Expenses
1. Drafting charges payable to Chartered
Accountant for drafting the Memorandum
and Articles of Assn. 0.10
2. Printing charges for Memorandum and
Articles of Assn. 0.10
3. Registration Fee payable to the Registrar of
Companies for registration considering the
Authorised Capita! of the company Rs. 11
lakhs 0.08
4. Fees paid to consultants for project
identification and evaluation, preparation of
project profiles, conducting market survey
and preparing Project Feasibility Studies 0.03
Rs. 0.31 lakhs
B. Pre-operative Expenses 1. Salaries, Wages and Staff Welfare
Expenses 0.20
2. Printing, Stationery and Postage 0.10
3. Rent, Rates and Taxes 0.12
4. Travelling and Conveyance Expenses 0.12
5. Auditor's Remuneration 0.08
6. Insurance Premium 0.04
7. Interest and Commitment Charges 1.44
8. Bank Charges and Commission 0.02
9. Recruitment of Personnels 0.03
10. Legal and Professional Fees 0.03
11. Other Miscellaneous Expenses 0.33
Working Capital & Margin Money Requirements Rs. 2.51 lakhs
Working Capital & Margin Money Requirements (Rs. lakhs)
Description No. of Margin (Plant Efficiency = 85%)
Working Margin Bank
Months Money Capital Money Finance
%
1. Raw Materials in Store
(A) Imported 0.00 20.00 0.00 0.00 0.00
(B) Indigenous 0.50 20.00 2.82 0.56 2.25
2. Packing Materials 0.50 20.00 0.04 0.01 0.03
3. Work in Progress 0.50 30.00 3.00 0.90 2.10
4. Finished Good in Store 0.50 30.00 3.12 0.94 2.18
5. Accounts Receivable 1.00 20.00 7.44 1.49 5.95
6. Other Recurg. Expenses 1.00 100.00 0.61 0.61 0.00
7. Electricity Deposit 100.00 0.25 0.25 0.00
Total 17.26 4.75 12.51
Capital Cost of the Project
The capital cost of the project is estimated as follows:
1. Land, buildings and other civil works Rs. 9.64 lakhs
2. Plant, equipment and machinery Rs. 11.00 lakhs
3. Other Miscellaneous fixed assets Rs. 1.80 lakhs
4. Preliminary expenses Rs. 0.31 lakhs
5. Pre-operative expenses Rs. 2.51 lakhs
6. Margin money for working capital Rs. 4.75 lakhs
7. Contingencies Rs. 1.49 lakhs
Rs. 31.50 lakhs
Financing of the project
It is proposed to finance the project as follows:
1. Long term loans from financial institutions Rs. 21.00 lakhs
2. Cash subsidy Rs. 2.53 lakhs
3. Equity capital
4. (i) from promoters, their friends, associate
and relatives Rs. 7.97 lakhs
5. (ii) from public Rs. 0.00 lakhs
Rs. 31.50 lakhs
Annual Requirements & Cost of Raw Materials and Consumables
S. No. Description Unit Qty. Rate Annual Cost
A. Imported
B. Indegenous
1. P-nitroaniline MT 31 100000/- 31.00
2. Hydrochloric acid MT 100 2000/- 2.00
(30%)
3. Sodium Nitrite MT 16 14500/- 2.32
4. 2-N-(ethylaniliono) MT 35 118000/- 41.30
ethanol
5. Sodium Bicarbonate MT 41 7000/- 2.88
Rs. 79.50 lakhs
Annual Cost of Packing Materials The annual cost of packing materials is estimated @ Rs. 1.00 lakhs per
annum.
Annual Cost of Utilities
Water 5000 KL @ Rs. 2/- per KL Rs. 0.10 lakhs
Coal 0.00
Fuel oil 0.00
Electricity 1.00 Lakh KWH@ Rs. Rs. 1.00 lakhs
1.00 per KWH
Rs. 1.10 lakhs
Annual Wage Bill of Labour & Staff Designation Nos. Monthly Annual Wages Salary (Rs.) (Rs. Lakhs) A. Factory Supervision 1. Production Manager 1 3000 0.36
2. Purchase/ Store Officer 1 2000 0.24
3. Supervisor/Chemist 1 2000 0.24
B. Administrative & Sales 1. Managing Director 1 3500 0.42
2. Sales Man 1 1400 0.17
3. Accountant 1 1500 0.18
4. Typist-cum-clerk 1 1200 0.14
5. Peon 1 600 0.07
C. Labour & Watch & Ward 1. Skilled Workers 2 1100 0.26
2. Semi-skilled Workers 3 1000 0.36
3. Unskilled Workers 4 1000 0.48
4. Watchmen 2 600 0.14
Rs. 3.07 lakhs
Other Benefits 0.43
Rs. 3.50 lakhs
Administrative Overheads
1. Rent, Rates & Taxes 0.24
2. Travelling & Conveyance 0.24
3. Postage, Telegram, Telephone 0.15
4. Printing & Stationery 0.13
5. Vehicle Expenses 0.10
6. Advertisement & Publicity 0.15
7. Legal & Professional Expenses 0.08
8. Directors Sitting Fees & Expenses 0.06
9. Bank Charges, Guarantee, Commissions,
etc. 0.11
10. Auditors Fees & Expenses 0.03
11. Other Miscellaneous Expenses 0.19
Rs. 1.48 lakhs
Annual Cost of Maintenance & Repairs
1. Cost of maintenance of buildings &
structures @ 1% on Rs. 8.30 lakhs 0.08
2. Cost of maintenance of plant & machinery
@ 22% on Rs. 11.00 lakhs 0.22
3. Cost of maintenance of other miscellaneous
fixed assets @ 2% on Rs. 1.80 lakhs 0.04
Insurance The building and structures, plant and machinery and other miscellaneous
fixed assets of the plant will be insured against all types of risks. The annual
insurance premium payable is estimated at 0.6% on Rs. 21.10 lakhs which works out
to Rs. 1266 lakhs.
Annual Sales Expenses The sales expenses generally cover commission, brokerage, discount, etc.
The annual sales expenses at 100% capacity utilisation are estimated at 1% of the
annual sales revenue of Rs. 105 lakhs which works out to Rs. 1.05 lakhs.
Annual Cost of Production (at 85% capacity) 1. Raw Materials 67.58
2. Utilities 0.94
3. Packing Materials 0.85
4. Annual Wage Bill of Labour & Staff 3.50
5. Administrative Overheads 1.48
6. Maintenance & Repairs 0.34
7. Insurance 0.13
8. Sales Expenses 0.89
9. Interest on short term loans @ 19% on
Rs. 12.51 lakhs 2.25
10. Interest on Long Term Loans @ 14%
on average amount of loan of Rs.
10.50 lakhs 1.47
11. Amortisation of Preliminary & Pre-
operative Expenses of Rs. 2.82 lakhs
@ 10% 0.28
12. Depreciation of Plant & Machinery @
9.5% on Rs. 11.00 lakhs 1.045
13. Depreciation on building @ 3% on Rs.
8.30 lakhs 0.25
14. Depreciation on Other Miscellaneous
Fixed Assets @ 5% on Rs. 1.80 lakhs 0.09
Rs. 81.08 lakhs
Revenue through sales 51 MT per
annum of
Disperse Dyes @ Rs. 175000 Rs. 89.25 lakhs
Per MT
Profitability 1. Net Annual Profit Before Taxes Rs.8.17 lakhs
2. Net Annual Returns on Equity
Capital before taxes 102.41%
Break-even Point Break-even Efficiency Fixed Cost of Sales
= Sales Revenues - Variable
Cost of Sales
= 8.58
105.00 -
85.30
= 43.52
Pay-back Period Pay-back Period (Approx.) = 2.37 Years
List of Foreign Collaborations 1. M/s The Atul Products Ltd., P.O. Atul, Valsad-Gujarat. ACNA Chemical
Organica S.P.A. Italy.
2. M/s Raspro Chemical Industries P. Ltd., Mahalaxmi Chambers, 22 Bhulabhai
Desai Road, Bombay.
3. M/s Nirup Synchrome Ltd., 802 Pargah Plaza, Basheer Bagh, Hyderabad.
4. ACNA Chemical Organic a S.P.A., Montedon Group, Italy.
List of Manufacturers and Dealers of Plant and Machinery
1. M/s Apurva Water Treatment Plant Mfg. Co., 304/305 Yogeshwar, 135/139
Kazi Sayed Street, Mumbai - 400003.
2. M/s Ashish Engineering Works, C-1 Sonal Industrial Estate, behind John
Baker Co., Saki Vihar Road, Mumbai - 400072.
3. M/s Baltex Engineering Pvt. Ltd., Jolly Maker Chambers No. 2, 13th floor, 131
& 133 Nariman Point, Mumbai - 400021.
4. M/s Abhay Kumar & Co., Gopal Nivas, 127 S. Gandhi Marg, Mumbai -
400002.
5. M/s Doshi Ion Exchange & Chemical Industries, 7, Prem Jeevan, Kazi Sayed
Street, Mumbai - 400 003.
6. M/s Gujarat Machinery Manufacturers Ltd., Churchgate House, 32-34 Veer
Nariman Road, Opposite Akbarally's, Mumbai - 400 023.
7. M/s Heliplastics Ltd., Jeroo Building, 1st Floor, 137 M.G. Road, Mumbai -
400023.
8. M/s Hovert Boilers and Chemical Equipments, Plot No. 3704/E, Phase IV,
Behind New Nirma Chemicals, G.L.D.C., Vatva, Ahmedabad.
9. M/s Karsandas Bechardas & Sons, Jaldarshan Building, Ashram Road,
Ahmedabad - 380 009.
10. M/s New Multifab Engineers Pvt. Ltd., 224/225, Gla Complex, 2nd Floor, D.
Upadhyay Marg, Mulund (W), Mumbai - 400 080.
11. M/s Soft-Dion Water, 75 Laxmi Building, 4th Floor, Sir P.M. Road, Fort,
Mumbai - 400 001.
12. M/s Standard Fabricators (India) Pvt. Ltd., Jeevan Sahakar, P.M. Road,
Mumbai - 400 001.
13. M/s Taxma Engineers, B-3 Giriray Industrial Estate, Mahakali Caves Road,
Andheri, Mumbai - 400 093.
14. M/s Valcano Heat Products, C/o Vishant Sales Corporation, 184 Samuel
Street, Mandvi Chamber, Mumbai - 400 009.
Dr. Himadri Panda
&
Dr. (Mrs.) Rakshinda Panda
Devashish Consultants (P) Ltd.
61, West End City,
Bidholia, Rampur Road,
P.O. Clutterbuckganj - 243502
Bareilly (UP)