PROJECT PROFILES

PRODUCT : GOLD PLATING ON JEWELLERY

AND OPTICAL FRAMES

PRODUCT CODE : 344021009

QUALITY STANDARD : AS PER CUSTOMERS’

SPECIFICATIONS

PRODUCTION CAPACITY : QUANTITY

(PER ANNUM) OPTICAL FRAMES - 2 LACS NOS.

JEWELLERY - 600 SQ. MTRS.

VALUE (RS.)

OPTICAL FRAMES - 40 LACS

JEWELLERY - 36 LACS

MONTH & YEAR : 15 TH FEBRUARY, 2011

PREPARED BY : MSME-DEVELOPMENT INSTITUTE

4TH FLOOR, HARSIDDH CHAMBERS
ASHRAM ROAD
AHMEDABAD – 380 014 (GUJARAT)
Tel. No. (079) : 27543147, 27544248
Fax No. 079-27540619
E-mail : [email protected]
Website: www.msmediahmedabad.gov.in
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1. INTRODUCTION:

The Gold is a relatively scarce yellow metal. Often found in the native
State, which is the most malleable of all metals. It is extremely corrosion
resistant but it may be desolved by aqua-regia, potassium cyanide solution and in
aquos solution of the halogens bromine and Iodine. The metal does not form a
coherent oxide film on its surface even at very high temperature and therefore it
has a very low contact resistant.

Electroplating of Gold is mostly carried out to obtain long lasting decorative

finishes and in some cases to improve electric contact and conductivity.

It is deposited from alkaline or acidic solutions. The metal concentration is

low because of the high price of gold. The Electrolytes are heated to 50o to 70o
to obtain a reasonable speed of deposition. The cathode efficiency depend upon
the metal concentration and the temperature. The colour of gold deposits depends
upon the operating temperature, current density and metal concentration and also
on the composition of the electrolyte. Light yellowish coatings are obtained at
low current density, low temperature and high metal concentration. A light colour
is also obtained by adding nickel salts while red gold is deposited from baths
containing copper. The anode are composed of very pure gold sheet or sometimes
insoluble carbon. In the later case the concentration must be maintained by
adding metal salt.

2. MARKET POTENTIAL:

There are a large number of application are available for electroplating units.
These are :

a) DECORATIVE

The important uses are in the jewellery cutlery and allied trades, fancy
goods such as hand bag optical frames & costumes, jewellery. Thin deposit of
pure gold may be applied over bright nickel and this can be more economic
where wear resistance is required watch cases, pen cases, plumbing fixtures
and door handles and hinges. In all these decorative uses, the colour of the
gold is a very important feature ranging from white gold, yellow to rose, red
to green gold, many of these colours are subject of strict requirements such
swiss watch cases colour standards.
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b) INDUSTRIAL USES

The most important industrial use of electroplated gold is in the electronic

industries which have grown in the last few years. Because of its unique
properties it has because valuable element in the fabrication of micro-
electronics & electronic devices such as Calculators, Transistors & Diodes.
Larger item such as heat sinks, heater, springs, wires connectors printed
circuits often use gold to form of protected the track.

Gold electroplating is also being used in many other engineering,

aerospace and scientific application e.g. reflector material in lasers and where
the infra red reflectivity is required. Hence, the good market is available for
this unit.

3. BASIS & PRESUMPTION:

(i) The efficiency of the unit is calculated at 70% of the total production
capacity. The unit will work 25 days in a month on single shift basis and
300 days in a year.

(ii) The time period for achieving the full envisaged capacity utilization is six
months.

(iii) The labour wages are as per the prevailing rates in the market.
(iv) The rate of interest for fixed and working capital is taken as 14 percent.
(v) The margin money requirement for this project is 30 percent.
(vi) The pay back period of this project is 5 years.

4. IMPLEMENTATION SCHEDULE:

The time requirement for preparation of Project Report : Two months

Time requirement for selection of site : One month
Time required for registration as small scale unit : One week
Time required for acquiring the loan, machinery : Three months
procurement, erection and commissioning
Recruitment of labourers etc. : One month
Trial Runs : One month
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5. TECHNICAL ASPECTS:
PROCESS OF MANUFACTURE
The gold is mainly electro deposited from potassium gold cyanide solution
which contains a certain minimum quantity of gold. The articles which are to be
plated first perfectly cleaned in a suitable hot alkaline soak cleaner and rinsed
well. Then pickled and etched the article in the chromic sulphuric acid for 1 to 2
minutes approximately at temperature of 60o to 70oC. Then swill and dry the
article. Then polished the article if required and again soak article in hot clean
and swill well.

6. PROCESS FLOW CHART:

Process flow chart is as under:

Article

Hot Clean

Swill

Dry

Polished

Aqous Cleaning

Hot Cleaning Cathadic

Swill

Acid Dip if required

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Swill

Final Clean (Cathodic/anodic)

Swill

Cyanide dip

Swill

Bright Nickel Plating

Gold Plating Process

The articles are hanged on the cathode bar of the plating bath where the plating
is done. Anode is made of the pure gold metal (electrode). Then D.C. current
between anode and cathode is passed and thereby the plating process is starts. The
time of plating depends upon the thickness of the coating required. After being
nickel plated the article drag out, water swill and the article should be moped out with
suitable mop.

Preparation of Bath

To prepare the gold plating bath first clean the PVC lined plating tank with hot
die acid and washed out and filled it to one third of its capacity with distilled water.
The temperature of the water is raised to 60oC and the required weight of potassium
gold cyanide caustic potash and potassium sulphite is slowly added. The mixture
being agitated well stirred until all the salts are dissolved. Now the bath can be filled
up to the required final level and the solution must be purified to remove the traces of
the metallic impurities.
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Many formulations have been prepared so far for the gold plating. However, a
typical formulation and operation conditions are given below:

- Potassium Cyanide - 12 Grms.

- Potassium gold cyanide - 18 Grms.
- Caustic Potash - 12 Grms.
- Potassium Sulphite - 5 Grms.
- One litre distilled water
- Temperature - 120oF to 180oF
- Current density - 2 - 6 Amps/Sq. Ft.
- Volt - 1.5 – 2 Volts

Now a days a readymade gold plating salt are available in the market in
which the required proportion of the chemical are mixed. Therefore, this salt
can also be utilized for the purpose.

7. QUALITY SPECIFICATION : As per customer’s specification.

8. PRODUCTION CAPACITY (Per Annum)

(a) Quantity - 600 Sq. Meters Gold Jewellery

2.0 Lacs Nos. of Optical Frames

(b) Value (Rs.) - 36 Lacs Gold Jewellery

- 40 Lacs Optical Frames
-------
Total : 76 Lacs
-------

9. MOTIVE POWER REQUIREMENT : 7 K.W.

10. POLLUTION CONTROL:

The unit has been identified the pollution making industry. Hence, the
No Objection Certificate (NOC) has to be taken from the State Pollution
Control Board before starting the unit.

11. ENERGY CONSERVATION:

The proper planning to take out the batch and the proper utilization of
the machineries may save the energy.
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12. FINANCIAL ASPECTS:
(i) FIXED CAPITAL
Land & Building Area Sq. Mtrs. Rate Rs./Sq. Mtr. Value (Rs.)
Land 100 2000 2,00,000/-
Built up area 75 5000 3,75,000/-
--------------
Total cost of land & building : 5,75,000/-
--------------
(ii) MACHINERY & EQUIPMENT
(a) Production Unit
Sr. No. Description of Machines Qty. (Nos.) Value (Rs.)
(i) Rectifier single phase DC Output,
200 Amp 6 Volt complete with
meter panel etc. 1 75,000/-
(ii) Cleaning/Swilling tank MS
Cap 2” x 2” x 2” 2 10,000/-
(iii) Nickel plating tank 1 30,000/-
Size 3” x 3” x 3” MS PVC
with electrode pipe & immersion heater
(iv) Etching Tank 2” x 2” x 2” MSRL
with Lipduct and blower arrangement 1 20,000/-
(v) Gold plating tank 3”x3”x3” MS PVC
with Lipduct and blower arrangement 1 25,000/-
(vi) Buffing Machine single phase 220 to
240 volt, RPM 1440 with accessories 1 10,000/-
(vii) Miscellaneous machines PP Tubes, Jigs etc. L.S. 35,000/-
(viii) Pollution control equipment exhaust system etc. L.S. 1,00,000/-
(b) Testing Equipment 15,000/-
(c) Electrification and Installation charges @ 10% of
cost of Machinery and Equipment 30,000/-
(d) Total cost of Machinery and equipment 3,25,000/-
(e) Total cost of Machinery and equipment 50,000/-
Total : 4,00,000/-
========
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13. WORKING CAPITAL (Per Month)
A. Staff and Labour
-----------------------------------------------------------------------------------------------
Designation Nos. Salary (Rs.) Total (Rs.)
-----------------------------------------------------------------------------------------------
Chemist/Production Manager 1 10,000/- 10,000/-
Supervisor 1 7,000/- 7,000/-
Clerk-cum-Typist 1 5,000/- 5,000/-
Accountant 1 3,500/- 3,500/-
Skilled Worker 1 3,000/- 3,000/-
Unskilled Worker 2 3,000/- 6,000/-
Peon-cum-Watchman 1 3,000/- 3,000/-
------------
Total : 37,500/-
Perquisites @ 15% of salary 5,625/-
------------
Total : 43,125/-
Or say : 43,000/-
B. Raw Material

-----------------------------------------------------------------------------------------------
Sr. No. Particulars Qty. Rate/kg. Value (Rs.)
(Rs.)
-----------------------------------------------------------------------------------------------
1. Pure Gold (22 carat) 200 Gms. 20 Lacs 4,00,000/-
2. Potassium Cyanide 7 Kgs. 650/- 4,550/-
3. Caustic Potash 10 Kgs. 150/- 1,500/-
4. Potassium Sulphate 1 Kg. 200/- 200/-
5. Miscellaneous Chemicals L.S. 15,000/-
-------------
Total : 4,21,250/-
Or say 4,21,000/-
C. Utilities
Power 15 KW @ Rs. 5.00/unit 15,000/-
Water 2,000/-
------------
17,000/-
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D. Other Contingent Expenses

Postage & Stationery .. 2,000/-

Telephone .. 2,000/-
Consumable Store .. 5,000/-
Repair & Maintenance .. 10,000/-
Transportation charges .. 5,000/-
Advertisement & Publicity .. 5,000/-
Insurance .. 3,000/-
Miscellaneous Expenses .. 1,000/-
-----------
Total : 33,000/-
14. TOTAL WORKING CAPITAL (Per Month)
= (A + B + C + D )
= 43000 + 421000 + 17000 + 33000
= 5,14,000

15. TOTAL CAPITAL INVESTMENT

Fixed Capital = (i+ii)
= 575000 + 400000
= Rs. 9,75,000/-

Working Capital for 3 months

= Rs. 5,14,000/- x 3
------------------
Total = Rs.15,42,000/-
===========
16. FINANCIAL ANALYSIS: Rs.
Cost of production (Per Year)
- Total recurring cost per year 61,68,000/-
- Depreciation on building @ 5% 18,750/-
- Depreciation on machinery @ 10% 35,500/-
- Depreciation on Office Equipment @ 20% 10,000/-
- Interest on total capital investment @ 14% 2,15,880/-
---------------
Total Cost of Production 64,48,050/-
Or say 64,48,000/-
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Sales/Turnover (Per Year)

Item Qty. Rate (Rs.) Value (Rs.)

Gold Plating 600 Sq. meters 6000/- 36,00,000/-

Gold plated Jewellery

2 Lacs No.Optical 20/- 40,00,000/-

Frames

Net Profit (Per Year)

Turnover Cost of Production Profit (Rs.)

76,00,000/- 64,48,000/- 11,52,000/-
Net Profit Ratio = Net Profit x100
Turnover

= 11,52,000 x 100 = 15.15%

76,00,000
Rate of return = Net Profit per year x 100
Total Investment

= 11,52,000 x 100 = 74.7%

15,42,000
Break even point (% of total production envisaged)
Fixed Cost
(a) Depreciation of machineries & equipment = 35,500/-
(b) Depreciation of office equipment = 10,000/-
(c) Depreciation on building = 18,750/-
(d) Interest on total capital investment = 2,15,880/-
(e) Insurance = 36,000/-
(f) 40% of salary and wages = 1,80,000/-
(g) 40% of other contingent expenses = 1,58,400/-
--------------
Total Fixed Cost (FC) = 6,44,530/-
=========
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B.E.P. = Fixed Cost x 100

Fixed Cost + Net Profit

= 644530 x 100
644530 + 1152000

= 35.87%

LIST OF CHEMICALS AND RAW MATERIALS SUPPLIERS:

1. M/s. Mahavir Chemicals Industries

Mahavir Estate
Behind Shah Chambers
Nr. C.T.M. Cross Lane, Amraiwadi,
Ahmedabad.

2. M/s. Manish Sales Corporation

178, Chetan Cloth Market
Sarangpur Gate
Ahmedabad-380 001.

3. M/s. Delta Chemicals

6, Delta House
J-1, Cama-Zone, Goregaon (E)
Bombay-400 063.

4. M/s. Komal Agencies

4, Shairaji Colony
Near Darpan Cinema
Andheri (East), Mombay-400 099.

5. M/s. Platewel Processes & Chemicals Ltd.

Padra Road, Atladra
P.B. No. 70
Baroda-390 012.
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LIST OF MACHINERY SUPPLIERS:

1. M/s. Graller Weil (India) Ltd.

Sukh Sagar, 6th Floor
N.S. Patkar Marg, Choupahg
Mumbai-400 007.

2. M/s. Canning Mitra Phoenics Ltd.

Eucharstic Congress Building III
5, Convent Street
Mumbai – 400 039

3. M/s. Transcrafts
11, Umbergaon Industrial Estate
Valsad.

4. M/s. Mr. Mistry & Co.,

97, Amrut Industrial Estate
Dudheshwar Road, Ahmedabad.

5. M/s. Kajal Electricals

14/B, Thakkar Estate
Nr. Nageshwar Estate, Jawahar Nagar
Amraiwadi, Ahmedabad.