ACNielsen ORG-MARG

Situation Analysis for SME

Sector

Submitted to TERI

By

Jamnagar Cluster

ACNielsen ORG-MARG

SUMMARY OF FINDINGS

• There are approximately 1000 units in this cluster who are engaged in manufacture

of various types of brass related products.

• ANNUAL TURNOVER

Annual Turnover (In crores)

3

12

3739 36

2720

1611

6 61 1 2

97104

111

0

25

50

75

100

125

2005-06 2006-07 2007-08

Upto 1 crore 1 to 3 crore 3 to 5 crore

5 to 7 crores 7 to 10 crores Above 10 crores

ACNielsen ORG-MARG

➢ PRODUCTION

Annual Production (In Tonnes)

5055

86

3438

21

7

19

3

3126

9104 3

85

13 3 1

31 32

67

0

10

20

30

40

50

60

70

80

90

2005-06 2006-07 2007-08

Upto 200 Tonnes 200 to 300 Tommes 300 to 400 Tonnes 400 to 500 Tonnes

500 to 750 Tonnes 750 to 1000 Tonnes 1000 to 1500 Tonnes Above 1500 Tonnes

ACNielsen ORG-MARG

➢ ENERGY REQUIREMENTS

• CUMULATIVE FUEL USAGE

Qty consumer per annum Number of Units using the fuel

Electricity 16275625 Units 198

Coal / Hard Coke 59777 Tonnes 191

Firewood 4425 Tonnes 7

• USAGE OF ELECTRICITY (IN UNITS CONSUMED PER ANNUM)

Usage of Electricity (In Units consumed per annum)

8%

27%

29%

12%

14%1%9%

Upto 20000 Units

20000 to 40000 Units

40000 to 60000 Units

60000 to 100000 Units

100000 to 200000 Units

200000 to 500000 Units

Above 500000 Units

• USAGE OF COAL / HARD COKE (IN TONNES PER ANNUM)

Usage of Petro Coal (In Tonnes per annum)

3%3%

18%

52%

8%

16%

Upto 40 Tonnes

40 to 60 Tonnes

60 to 100 Tonnes

100 to 500 Tonnes

500 to 2000 Tonnes

Above 2000 Tonnes

ACNielsen ORG-MARG

➢ RAW MATERIAL REQUIREMENT

• CUMULATIVE RAW MATERIAL USAGE

Qty consumed per annum Number of Units using the raw material

Brass 295067 Tonnes 155

Iron 13850 Tonnes 29

Clay 41925 Tonnes 100

Sand 36521 Tonnes 49

• USAGE OF BRASS (IN TONNES PER ANNUM)

Usage of Brass (In Tonnes per annum)

23%

6%

36%

25%

3%

3%

4%

Upto 100 Tonnes

100 to 200Tonnes

200 to 300 Tonnes

300 to 500 Tonnes

500 to 1000 Tonnes

1000 to 10000 Tonnes

Above 10000 Tonnes

• USAGE OF IRON (IN TONNES PER ANNUM)

Usage of Iron (In Tonnes per annum)

14%

14%

36%

34%

2%

Upto 200 Tonnes

200 to 500 Tonnes

5 to 10 Tonnes

500 to 1000 Tonnes

Above 1000 Tonnes

ACNielsen ORG-MARG

• USAGE OF CLAY (IN METRES PER ANNUM)

Usage of Clay (In Tonnes per annum)

2%

39%

41%

18%

Upto 1250 Tonnes

250 to 500 Tonnes

500 to 1500 Tonnes

Above 1500 Tonnes

• USAGE OF SAND (IN TONNES PER ANNUM)

Usage of Sand (In Tonnes per annum)

6%

39%

16%

37%

2%

Upto 250 Tonnes

250 to 750 Tonnes

750 to 1500 Tonnes

1500 to 2500 Tonnes

Above 2500 Tonnes

ACNielsen ORG-MARG

FIELD OBSERVATIONS

✓ Jamnagar is known as the hub of Brass components.

✓ The major areas where the units are located - GIDC (Phase-1, 2), Patel

Colony, M.P.Shah Industrial Area, Hapa Industrial Area & 46 Digvijay Plot

✓ Majority of the units in this cluster are family owned business, which through

experience, trials have grown over the years. All the units are using the local

technology and there has been no outsource of technology.

✓ The units are normally working for 10-12 hours; very few units are running for

all the shifts.

✓ Brass scrap, which is imported from Kandla port, has registered a hike of 300

per cent in the last two years from Rs 80 to Rs 265 per kg

✓ Major energy consuming equipments are Blower, Lathe machine, Cutting

machine/ Pantograph, Electric Furnace, Annealing Furnace.

✓ The major raw material is scrap, which is being imported, and sometimes due

to shortage as well as high price the units are working partially. Majority of the

units are sourcing the scrap through brokers/ traders. The current rates have

fallen by nearly 30%

✓ Customs duty on imported brass is now more than double. As a result, there

has been a backlog of nearly 300 brass scrap containers lying at the Kandla

Port in Kutch district.

✓ With a total brass consumption of 50 lakh containers per month, each weighing

20 tonnes, Jamnagar accounts for 80 per cent of the total brass components

(electrical, automobile or sanitary) produced in India.

✓ There are two types of units, one that are completely integrated and have

electric furnace & use scrap, waste have the testing facilities – spectrometer to

test the content of Cu in the total melt. The other type of units which are spread

across in each & every area that is melting in crucible / underground bhatti,

wherein the raw material is machining waste / powder.

✓ The various grades being manufactured are IS 319 which has 56% Cu and is

used largely for hardware products. Other grades such as IS3488 are used for

locks wherein Cu is 50 –55%. IS3488 is the forging grade which has 60.5 –71%

Cu used for LPG valves.

✓ The major products are Brass Rods, Profiles, and Sections etc.

ACNielsen ORG-MARG

✓ The normal time taken is I hour 20 min for melting 300 kg wherein the molten

metal is pored in moulds for making billets.

Electricity

❖ Supplied by Gujarat State electricity board.

❖ Getting 24 hr power supply ( weekly off on Wednesday)

❖ Per unit rate Rs. 5.50/-

❖ Energy/Fuel cost is 15 to 20% of total production cost.

Major equipments are

❖ Electric Furnace / Crucible/Bhatti

❖ Annealing Furnace

❖ Blower

❖ Extrusion Press

❖ Cutting machine

❖ Sand muller

❖ Pantograph/Lathe

Raw materials

❖ Brass Scrap

❖ Zinc

❖ Aluminum

❖ Copper

✓ Major products like Brass Screws, Brass Nuts, Brass Fasteners, Brass Inserts,

Brass Screws, Machine Screws India, Brass Fasteners, Brass Terminals, Brass

Casting, Brass PPR inserts, Brass Moulding inserts, Brass hose fittings, Brass

hose barbs, Brass Anchors, Brass turned parts, Brass turned components,

Brass Neutral Links, Brass forged fasteners, Brass Pipe Fittings, Sanitary

fittings, Brass Hex Bolts Hex Nuts, Brass washers, Copper Washers, Bronze

Casting etc.

ACNielsen ORG-MARG

Process (Brass foundry)

In some case where the units are doing job work of making billets, majority of

the units are using Crucibles – underground bhatti – MOOSE wherein maching

waste scrap powder is being used, normal capacity is 380kg in 3 hours, pouring

in molds and preparing the billets.

Raw materials –

scrap & other

metals, casting

waste

Melting –electric

furnace

Annealing furnace

– oil fired 800-

900 deg.

Pouring in molds- after

necessary testing of

molten metal for Cu &

other metal contents

After knock out billets

are formed – 3 ft Knock out

Cleaning (finish

product) Extrusion Press –Die –

Straitening -Drawing

Cutting

ACNielsen ORG-MARG

Process (Brass Parts)

Raw materials –

Brass rods

Cutting

Packaging &

ready for market

Drilling

Finish product Threading

/Turning

ACNielsen ORG-MARG

Raw materials

Raw material (Scrap)

ACNielsen ORG-MARG

Sand Muller

Preparing for moulding

ACNielsen ORG-MARG

Knock out brass

Product from knock out

ACNielsen ORG-MARG

Press machine (Rod shape)

Electric furnace (700 oC)

ACNielsen ORG-MARG

Hammer sand mixing for moulding

Cutting machine

ACNielsen ORG-MARG

Cutting machine

Threading machine

ACNielsen ORG-MARG

Power press machine-1

ACNielsen ORG-MARG

Power press machine-2

ACNielsen ORG-MARG

Drill machine

Packaging machine

ACNielsen ORG-MARG

SERVICE PROVIDERS

Sidharth Extrusion

S.No. 492, WAGHAWADE ROAD,

MACHE,

BELGAUM - 590 014,

MICO Hydraulics

Jamnagar

SPM Hydraulics

1486/ A, 'Shraddha', Mahaveer Nagar, Piranwadi,

Belgaum - 590014,

Gupta Brass Trader

Shankar Tekri, Jamnagar, Ph-2561486

Sky press & metals co.

421/GIDC, estate, Jamnagar-361004

0288-254674/2561383

Prakash Impex

Panchvati Area, Jamnagar

Gujarat NRE Coke,

Panchvati area,

Saru section road,

Jamnagar.

ACNielsen ORG-MARG

Shiv Coal Trading co.

Char rasta,

Udyognagar,

Rajkot

Indian Enterprises

58, Udyognagar Road,

Near Hariya Engg, Bank of Baroda Street,

Jamnagar - 361 004 (Mr. Satish Nanda)

Ranjit Industries

C/2 - 114, Shanker Tekri,

Udyog Nagar,

Jamnagar - 361 004.

Ph-0288 - 2561199 / 2563099

Mr. Ravipal Singh

Marvel Metal corporation

120, 1st floor,

Manek Center, P. N. Marg, Jamnagar - 361 008

M-9925630333, Mr Milan Upadhyay

Raj Laxmi Industries

C-2/98, G.I.D.C. Industrial estate, Shankar Takeri, Udyog nagar,

Jamnagar - 361004

Ph-0288-2560001/2556850 , M-9824299991

Mr. Bijal Gada (Proprietor)

Brass product Jamnagar ltd

Plot- 1255, GIDC Industrial Estate,

Shanker tekri Jamngar 361004

ACNielsen ORG-MARG

Association

Jamnagar Factory owener's Association

Plot no. 370/372, GIDC, Industrial area, Udyognagar, Jamnagar-361004

0288-2560002/3 (Mr. Ramji bhai Patel, President)

Jamnagar Brass components

C-2 Industrial Estate, Shanker Tekari,

Udyognagar,

Jamnagar,

ACNielsen ORG-MARG

BANKERS

Allahabad Bank

3, Nandanvan Society, Sadhana Colony,, Jamnagar

Ph-0288 – 2671874

ICICI Bank Limited

P N Marg, Solarium Road, Nr M P Shah Medical College, Jamnagar

Ph-0288 – 2660017

Indusind Bank Limited

Shivam Complex, Teen Batti, Jamnagar

Ph-0288 – 2664322

Union Bank Of India

4, Digvijay Plot, O/S Of Khambhalia Gate, Opp New School, Jamnagar-361005

Ph-0288 – 2676787

The Lakshmi Vilas Bank Ltd

1st Floor, Shree Dhan Palace, Nr Town Hall, P B No 116, Jamnagar-361001

Ph-0288 – 2661762

Syndicate Bank

Anjaria Chamber, K V Road, Jamnagar-361001

Ph-0288 – 2676756

Punjab & Sind Bank Ltd

B-8, Ajanta Society, Bedi Road,, Jamnagar-361002

Ph-0288 – 2676708

State Bank Of Saurashtra

S S I Branch, Shankar Tekri,, Jamnagar-361004

Ph-0288 – 2553503

ACNielsen ORG-MARG

Dena Bank

Hawai Chowk,Shesth Fali,,Yadvendra Bhavan,,Jamnagar - 361 001

Ph-0288 – 2676580

State bank of India

Jamnagar- 361001, jamnagar, Gujarat – 361001

0288 – 2672919

UCO Bank

Woolen Mill Campus,Jamnagar

Ph-2677050

Punjab National Bank

Ranjit Road, Jamnagar

Ph-2558451, 2676751

Oriental Bank of Commerce

Unique Shopping Centre, Jamnagar

Ph-2673998,2670958

Gujarat Industrial Co.Op. Bank

Jamnagar. Ph-2679518

Bank of Baroda

Manoj Chambers,Sumair Club Road,Jamnagar

Ph-2675172,2552727, 2676676

Bank Of India

Shankar Tekri (SSI Branch),Jamnagar.

Ph-2561542

SIDBI Bank

4, Patel colony, Jamnagar

Ph-2753055