Project Report-Granite Cutting & Polishing Unit
Project Report-Granite Cutting & Polishing Unit
BOULDERS
6 INSTALLED CAPACITY 1,20,000 Sq.Ft per Annum
7 UTILISATION CAPACITY @ 60 % 84,000 Sq.Ft per Annum
8 NAME & ADDRESS OF UPPINIVALASA DURGARAO
Srikakulam Dist.
9 TOTAL PROJECT COST Rs. 2,22,00,000
10 COST OF PRODUCTION (PER ANNUM) Rs. 1,67,24,947
11 SALES REVENUE (PER ANNUM) Rs. 1,80,00,000
12 NET PROFIT (PER ANNUM) BEFORE TAX Rs. 12,75,053
12 NET PROFIT RATIO 7.08 %
INTRODUCTION
INTRODUCTION
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A Feasibility Report on Granite Cutting & Polishing Plant
building as well as decorative stone. The fascination for granite is due to its taking
mirror-like polish, high compressive strength, longevity and beauty. India possesses
enormous deposits of all types of dimension stones. It is one of the largest producers
of dimension stones in the world. The dimension stone industry employs over one
million workforce. This industry plays a vital role in the economy of states like Tamil
Nadu, Andhra Pradesh, Karnataka and Rajasthan. Rural economy of many developing
states like Madhya Pradesh, Uttar Pradesh, Orissa and North-Eastern States is
dependent on this industry.
The granite used for decorative purposes is a costly material in comparison with other
materials. Hence, its utilisation and trade within the country has been at a low profile
compared with the exports. With the emergence of the rich middle class and spurt in
construction activity, the internal trade is on the rise.
RESOURCES
India is endowed with abundant resources of a wide variety of granite. As on
1.4.2005, resources of granite dimension stone of all types are estimated at 37,426
million cubic metres. Of these resources, 1,130 million cubic metres (about 3%) fall
in reserves category while remaining 36,296 million cubic metres or about 97% fall in
resources category.
Gradewise classification reveals that about 8% resources fall under black granite
while 91% under coloured granite. About 1% reserves and resources are of
unclassified grade.
Under reserve category, about 23 million cubic metres of all grades fall under proved
category while 1,162 million cubic metres fall under probable category.
Statewise breakup of resources reveals that Karnataka with about 25% resources is
leading followed by Jharkhand (24%), Rajasthan (23%), Andhra Pradesh (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%).
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A Feasibility Report on Granite Cutting & Polishing Plant
The usage of granite tiles and slabs is increasing as the construction activity is
growing up. There is huge market potential for granite monuments in overseas. Slabs
of fine finish are also being exported form our district. As there are large granite
recourses in our district, the cutting and polishing activity becomes good investment
decision.
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 their
interiors and exteriors. Once limited to the wealthy, granite has now become a part of
the common people’s use because of the supply of granite from the new granite
industries.
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A Feasibility Report on Granite Cutting & Polishing Plant
It is assumed that the unit will operate on Two shift basis for 25
working days a month and 300 working days in a year.
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A Feasibility Report on Granite Cutting & Polishing Plant
The salaries and wages for staff and labour have been taken into
consideration on the basis of prevailing market rates and Minimum
Wages Act.
The cost of plant and machinery, Raw materials, selling price of finished
products etc. are the prices collected at the time preparation of project
report and may vary depending upon location, manufacturers, market
and other various reasons.
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A Feasibility Report on Granite Cutting & Polishing Plant
FEASIBILITY STUDY
INTRODUCTION
Feasibility literally means whether some idea will work or not. It knows
beforehand whether there exists a sizeable market for the proposed
product/service, what would be the investment requirements and where to
get 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 to
assess our proposed project to be viable not only in technical terms but also
in economic and commercial terms too.
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A Feasibility Report on Granite Cutting & Polishing Plant
In this study, I put my intention on all the facets of the feasibility of the
proposed project viz., marketing, technical, financial, economic and legal.
MARKET ANALYSIS
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A Feasibility Report on Granite Cutting & Polishing Plant
For granite slab & tiles, there is good domestic market. Slabs with fine finish
and monuments of different colours, colour patterns and design have export
market. we want to concentrate on both domestic and international market.
To achieve this, we want to market our product at a cost effective manner
and supply the customers the high quality product. The very next, we would
plan to supply our product to renowned Distributors and Dealers and also
traders in this field.
UNIT LOCATION
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A Feasibility Report on Granite Cutting & Polishing Plant
PROCESS DETAILS
The processing of granite dimension stones essentially involves the following major
operations: quarry opening; blasting; cutting; polishing and ornamenting.
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A Feasibility Report on Granite Cutting & Polishing Plant
Wire sawing is used for primary block extraction. The system consists of a long
stranded wire or diamond tipped wire fed through a series of pulleys and assisted by
abrasives. Stranded wire has been used for many years in marble and sandstone,
whilst improvements in diamond technology, has seen the recent introduction of wire
sawing 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 further
working.
Cutting is performed by a gang-saw for producing granite slabs. Gang sawing uses a
reciprocating 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 polishing
machines in order to attain attractive color and uniform texture,
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A Feasibility Report on Granite Cutting & Polishing Plant
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A Feasibility Report on Granite Cutting & Polishing Plant
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A Feasibility Report on Granite Cutting & Polishing Plant
FINANCIAL ANALYSIS
FINANCIAL ASPECTS
A. FIXED CAPITAL
a. Land
b. Buildings
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A Feasibility Report on Granite Cutting & Polishing Plant
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A Feasibility Report on Granite Cutting & Polishing Plant
clearances.
Iii Preliminary & Pre-operative charges; includes preparation of 50,000/-
2
Buildings 18,01,500/-
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A Feasibility Report on Granite Cutting & Polishing Plant
2
Other Fixed Expenditure 5,55,000/-
3
TOTAL 1,10,97,717/- Say Rs. 1,10,00,000
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A Feasibility Report on Granite Cutting & Polishing Plant
800
v Metal Cup 3" # 60 10 Nos 900 9,000
Metal Cup 3" # 100 10 Nos 900 9,000
Metal Cup 3" # 200 5 Nos 900 4,500
Metal Cup 3" # 800 10 Nos 900 9,000
vi G.C Wheel 30 Nos 100 3,000
vii 24" Blade Segments with 4 Nos 6,000 24,000
blank
viii 8" Dry Cutter 5 Nos 3,200 16,000
ix 4" Dry Cutter 5 Nos 1,800 9,000
x 4" Cup Wheel 5 Nos 1,800 9,000
xi Buff 8" 4 Nos 6,500 26,000
xii Buff 6" 4 Nos 3,500 14,000
TOTAL 5,10,750
requirement.
1. RAW MATERIALS
3. UTILITIES
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A Feasibility Report on Granite Cutting & Polishing Plant
TOTAL 88,774
4. OTHER EXPENSES
MEANS OF FINANCE
(@ 5 % On Capital Investment)
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A Feasibility Report on Granite Cutting & Polishing Plant
BY SALE OF…
PROFITABILITY ESTIMATES
PROFIT RATIO
12,75,053
= ----------------- X 100
1,80,00,000
= 7.08 %
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A Feasibility Report on Granite Cutting & Polishing Plant
12,75,053
= ----------------- X 100
1,22,00,000
= 10.45 %
FIXED COST
(In Rs.)
TOTAL 42,51,062
Fixed Cost
B.E.P. = --------------------------- × 100
Fixed Cost + Profit
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A Feasibility Report on Granite Cutting & Polishing Plant
42,51,062
B.E.P. = ---------------------------- × 100
42,51,062 + 12,75,053
= 76.9 %
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A Feasibility Report on Granite Cutting & Polishing Plant
Paid (INR) .39 .52 .67 .92 .35 .08 .18 .75 .89 .69 .24 6.66
Interest 94357 93456 92546 91627 90698 89760 88813 87857 86891 85915 84929 83934
Paid (INR) .67 .53 .39 .14 .70 .98 .88 .31 .17 .37 .81 .40
Total 12937 13872 14797 15714 16621 17518 18406 19285 20154 21013 21862 22702
Interest (INR) 77.18 33.71 80.10 07.25 05.95 66.93 80.81 38.11 29.28 44.66 74.47 08.87
Balance (INR) 93456 92546 91627 90698 89760 88813 87857 86891 85915 84929 83934 82929
53.43 38.91 14.24 70.32 97.97 87.89 30.71 16.96 37.07 81.39 40.14 03.49
Month 1 2 3 4 5 6 7 8 9 10 11 12
Year 3 3 3 3 3 3 3 3 3 3 3 3
Payment (INR 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447
) 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06
Principal 10154 10255 10358 10461 10566 10672 10778 10886 10995 11105 11216 11328
Paid (INR) 2.02 7.44 3.02 8.85 5.04 1.69 8.90 6.79 5.46 5.01 5.57 7.22
Interest 82929 81913 80888 79852 78806 77749 76682 75604 74515 73416 72305 71183
Paid (INR) .03 .61 .04 .21 .02 .37 .15 .27 .60 .04 .49 .84
Total 23531 24350 25159 25957 26745 27523 28290 29046 29791 30525 31248 31960
Interest (INR) 37.91 51.52 39.56 91.77 97.79 47.16 29.32 33.58 49.18 65.22 70.72 54.55
Balance (INR) 81913 80888 79852 78806 77749 76682 75604 74515 73416 72305 71183 70050
61.46 04.02 21.00 02.15 37.12 15.43 26.53 59.74 04.27 49.26 83.69 96.47
Month 1 2 3 4 5 6 7 8 9 10 11 12
Year 4 4 4 4 4 4 4 4 4 4 4 4
Payment (INR 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447
) 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06
Principal 11442 11556 11671 11788 11906 12025 12145 12267 12390 12513 12639 12765
Paid (INR) 0.09 4.29 9.94 7.14 6.01 6.67 9.23 3.83 0.56 9.57 0.97 4.88
Interest 70050 68906 67751 66583 65405 64214 63011 61797 60570 59331 58080 56816
Paid (INR) .96 .76 .12 .92 .05 .39 .82 .23 .49 .49 .09 .18
Total 32661 33350 34027 34693 35347 35989 36619 37237 37843 38436 39017 39585
Interest (INR) 05.52 12.28 63.40 47.32 52.37 66.76 78.59 75.82 46.31 77.80 57.89 74.07
Balance (INR) 68906 67751 66583 65405 64214 63011 61797 60570 59331 58080 56816 55539
76.38 12.09 92.15 05.01 39.01 82.34 23.10 49.28 48.71 09.14 18.18 63.30
Month 1 2 3 4 5 6 7 8 9 10 11 12
Year 5 5 5 5 5 5 5 5 5 5 5 5
Payment (INR 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447
) 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06
Principal 12893 13022 13152 13283 13416 13550 13686 13823 13961 14101 14242 14384
Paid (INR) 1.42 0.74 2.95 8.18 6.56 8.22 3.31 1.94 4.26 0.40 0.50 4.71
Interest 55539 54250 52948 51632 50304 48962 47607 46239 44856 43460 42050 40626
Paid (INR) .63 .32 .11 .88 .50 .83 .75 .12 .80 .66 .55 .35
Total 40141 40683 41213 41729 42232 42722 43198 43660 44109 44543 44964 45370
Interest (INR) 13.70 64.02 12.13 45.02 49.52 12.35 20.10 59.22 16.02 76.68 27.23 53.58
Balance (INR) 54250 52948 51632 50304 48962 47607 46239 44856 43460 42050 40626 39187
31.88 11.14 88.19 50.01 83.46 75.23 11.93 79.99 65.73 55.33 34.83 90.12
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A Feasibility Report on Granite Cutting & Polishing Plant
Month 1 2 3 4 5 6 7 8 9 10 11 12
Year 6 6 6 6 6 6 6 6 6 6 6 6
Payment (INR 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447
) 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06
Principal 14528 14673 14820 14968 15118 15269 15422 15576 15732 15889 16048 16208
Paid (INR) 3.16 5.99 3.35 5.38 2.24 4.06 1.00 3.21 0.84 4.05 2.99 7.82
Interest 39187 37735 36267 34785 33288 31777 30250 28707 27150 25577 23988 22383
Paid (INR) .90 .07 .71 .68 .82 .00 .06 .85 .22 .01 .07 .24
Total 45762 46139 46502 46850 47183 47500 47803 48090 48362 48617 48857 49081
Interest (INR) 41.48 76.55 44.26 29.94 18.76 95.76 45.82 53.67 03.89 80.90 68.96 52.20
Balance (INR) 37735 36267 34785 33288 31777 30250 28707 27150 25577 23988 22383 20762
06.96 70.97 67.62 82.24 00.01 05.95 84.95 21.74 00.90 06.85 23.87 36.05
Month 1 2 3 4 5 6 7 8 9 10 11 12
Year 7 7 7 7 7 7 7 7 7 7 7 7
Payment (INR 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447 18447
) 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06 1.06
Principal 16370 16534 16699 16866 17035 17205 17378 17551 17727 17904 18083 18264
Paid (INR) 8.70 5.78 9.24 9.23 5.93 9.49 0.08 7.88 3.06 5.79 6.25 4.61
Interest 20762 19125 17471 15801 14115 12411 10690 8953. 7198. 5425. 3634. 1826.
Paid (INR) .36 .27 .82 .82 .13 .57 .98 18 00 27 81 45
Total 49289 49480 49655 49813 49954 50078 50185 50274 50346 50401 50437 50455
Interest (INR) 14.56 39.84 11.65 13.48 28.61 40.18 31.15 84.33 82.33 07.59 42.40 68.85
Balance (INR) 19125 17471 15801 14115 12411 10690 89531 71979 54252 36348 18264 0.00
27.35 81.56 82.32 13.09 57.16 97.68 7.59 9.71 6.65 0.86 4.61
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A Feasibility Report on Granite Cutting & Polishing Plant
MACHINERY SUPPLIERS
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A Feasibility Report on Granite Cutting & Polishing Plant
PRODUCT STUDY
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A Feasibility Report on Granite Cutting & Polishing Plant
SPECIFICATIONS
12" x 12" / 305 x 305 x 24” x 12” / 610 x 305 x 16" x 16" / 405 x 405 x
10mm 10mm 12mm
18" x 18" / 457 x 457 x 12mm 24" x 24" / 610 x 610 x 20mm
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A Feasibility Report on Granite Cutting & Polishing Plant
Slabs: Any Random Size 60up x 120up x 2 cm, 60up x 120up x 3 cm, 230up x
120up x 2 cm, 230up x 120up x 3cm, 250up x 150up x 2 cm.
SURFACE FINISHES
EDGE FINISHES
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A Feasibility Report on Granite Cutting & Polishing Plant
SLABS: We are able to provide various edge finishes as per the customers
requirement
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A Feasibility Report on Granite Cutting & Polishing Plant
QUALITY CONTROL
POLISHING
Polishing will be uniform throughout the slabs/tiles and in gloss meter as:
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A Feasibility Report on Granite Cutting & Polishing Plant
FLAMING
Flaming will be uniform throughout the slabs/tiles and brushed evenly on slabs after
flaming
THICKNESS
+/- 1.0mm in tolerance for slabs ; +/- 0.5mm in tolerance for tiles
DIAGONAL OUT
Blocks 9 cbm
40 x 40 x 1 cm 736 Sqm
40 x 40 x 2 cm 420 Sqm
60 x 60 x 2 cm 420 Sqm
40 x 40 x 3 cm 280 Sqm
60 x 60 x 3 cm 280 Sqm
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A Feasibility Report on Granite Cutting & Polishing Plant
Metric Conversion
10 mm 3/8"
20 mm 3/4"
30 mm 1 1/8"
Feet Inches Cm Mm
1' x 1' 12" x 12" 30.5 x 30.5 cm 305 x 305 mm
2' x 1' 24" x 12" 61 x 30.5 cm 610 x 305 mm
1.25' x 1.25' 16" X 16" 40.5 X 40.5 cm 405 X 405 mm
1.5' x 1.5' 18" x 18" 45.7 x 45.7 cm 457 x 457 mm
2' x 2' 24" x 24" 61 x 61 cm 610 x 610 mm
12X12 TILES 10MM +/- 0.5 THICK, POLISHED, BEVELLED AND CALIBRATED 10
TILES IN A STYROFOAM BOX, 36 STYROFOAM BOXES IN A WOODEN CRATE, 20 FULL
CRATES IN ONE 20FT. CONTAINER TOTALING 7200 TILES= 7200 SQ. FT.
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A Feasibility Report on Granite Cutting & Polishing Plant
24X12 TILES 10MM +/- 0.5 THICK, POLISHED, BEVELLED AND CALIBRATED 6 TILES
IN A STYROFOAM BOX, 36 STYROFOAM BOXES IN A WOODEN CRATE, 16 FULL AND 8
HALF CRATES IN ONE 20FT. CONTAINER TOTALING 4320 TILES= 8640 SQ. FT.
16X16 TILES 12MM +/- 0.5MM THICK, POLISHED, BEVELLED AND CALIBRATED 7
TILES IN A STYROFOAM BOX, 32 STYROFOAM BOXES IN A WOODEN CRATE,20
CRATES IN ONE 20 FT. CONTAINER TOTALING 4032 TILES= 6826 SQ. FT.
18X18 TILES 12MM +/- 0.5MM THICK, POLISHED, BEVELLED AND CALIBRATED 6
TILES IN A STYROFOAM BOX, 16 STYROFOAM BOXES IN A WOODEN CRATE, 30
CRATES IN ONE 20 FT. CONTAINER TOTALING 2880 TILES= 6480 SQ. FT.
24X24 TILES 20MM +/-1MM THICK, POLISHED AND CALIBRATED 50 TILES IN ONE
WOODEN CRATE, 20 CRATES IN ONE 20 FT.CONTAINER TOTALING 1000 TILES =
4000 SQ. FT.
TEST REPORT
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A Feasibility Report on Granite Cutting & Polishing Plant
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