COPPER INGOTS FROM SCRAP

PRODUCT CODE : 72114

QUALITY & STANDARDS : As per BIS standard

PRODUCTION CAPACITY : 42 MT per year

MONTH AND YEAR OF : March, 2012

PREPARATION

PREPARED BY : MSME- Development Institute,

(Metallurgy Division)
C.G.O. Complex, Block“C”, Seminary Hills,
Nagpur – 6.
1. INTRODUCTION:
Copper ingots are generally required by the Non-ferrous casting units which are engaged in the casting of
different engineering components of brass, gun metal, bronze etc., the agricultural machinery, automobile industries and
railway components.

2. MARKET POTENTIAL:
These ingots are also required for manufacturing of rods, tubes, strips, wires etc. The copper ingots manufactured
from copper scrap are generally known as commercial quality ingots & do not come under the group of electrolytic copper
as these are secondary quality ingots.
Copper scrap is available from electric Power Supply deptt./ Thermal power station where scraps like
tubes, strips, pipes, flats, wires etc. generate almost regularly. The scrap can also be available from electrical
repairing shops where servicing of electric motors, pumps, transformers of all kinds, generators, battery testers &
many other items is done regularly.
3. BASIS AND PRESUMPTIONS:
The project profile is drawn on the basis of following presumptions.

Working hours per shift : 8 Hours.

No. of shift per day : 1 shift
Working days : 300 days
Total number of working hours : 2400
Working efficiency : 75%
Time period for achieving : 3rd year from the date on which
maximum capacity Utilization. production is started
Labour charges : As per minimum Wages Act of State Govt.
Rate of bank interest : 12%
Operative period of the project : 10 years.
Melting loss has been estimated at 8-10%.

4. IMPLEMENTATION SCHEDULE:
Project implementation will take a period of 8 months from the date of approval of the project. Break-up of
activities with time-period for each activity is shown below.
[Link]. Nature of activities Time period in months (estimated)
1. Scheme preparation and approval 0-1
2. SSI provisional registration 1-2 day
3. Sanction of loan 2-5
4. Clearance from Pollution control Board 3-4
5. Placement of order for delivery of machinery 4-5
6. Installation of machines 6-7
7. Power connection 6-7
8. Trial run 7-8
9. Commencement of production 9 months

5. TECHNICAL ASPECTS:
A. Production details and Process of Manufacture:
Before the process of melting, the copper scraps are required to be pickled in an acid tank to eliminate dry
oxide, dust, dust, oils, mud etc. In the pickling process, sulphuric acid is normally used 3 to 5% with cold water in a
stainless steel tank specially fabricated for this purpose according to the requirement of day-to-day production.
The holding time of scraps in the sulphuric tank is determined for one hour or more per batch
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 & the care must be taken to see that the acid does not affect the surface of the metal. The pitting action should not
be there on the metal surface & time may be adjusted to avoid the same. The scraps are then allowed for washing &
natural drying.
Melting of copper scraps is to be followed in oil fired crucible furnace. The furnace temperature during melting
must be controlled between 10830C and [Link] molten metal is then poured into steel ingot moulds of 2 kgs
capacity with the help of ladle for solidification. The product is then ready for marketing.

B. Quality Specification:
Copper ingots should be manufactured adhering to relevant BIS specification.

6. Process Flow Chart:

Pickling

Washing & natural drying

Melting of copper scrap

Adjusting the composition

Pouring into steel ingot moulds

Solidification

Testing & Inspection

Ready for dispatch

7. Production Capacity:
Quantity : 37.80 tones per annum.
Value : Rs. 2,32,47,000/-
8. Motive power : 5 HP.

9. Pollution Control Measures:

While heating provision for smoke emitting equipment be made with chimney to pass through flue gases.
10. Energy Conservation:
Energy audit is an essential part for energy conservation. The following factors should be taken care of with
regard to fuel economy in industrial furnace.
Proper heat distribution.
Complete combustion with minimum excess air.
Operating at the desired temperature.
Reducing heat losses from openings, Minimizing wall losses
Waste heat recovery from fuel gases, Control of chimney draught.
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 11 Financial Aspects
A. Fixed Capital
i) Land & Building, 2000 Sq. Ft. (rented) per month 5000
ii) Machinery & Equipments:
[Link]. Description of Machines Quantity Price (Rs)
1 Oil fired crucible furnace (50 Kg capacity) with 2HP motorised 1 100000
blower, burner, overhead oil reservoir tank & accessories etc.
2 Moulding Ingots ([Link] molten metal-2Kgs wt. each) 10 30000
3 Stainless Steel Tank 6’L x 3’W x 3’H. 1 20000
4 Silicon Carbide crucibles (molten metal cap. 50 Kgs each 3 15000
5 Laddles, Pokers, Wire net, Buckets etc. L.S. 12000
6 Initial Filling of Sulphuric acid 300 ltrs 20000
7 Platform type weighing machine 150 Kg. 1 10000
Cap
8 Bench Grinder, 1HP 1 10000
TOTAL 217000
9 Electrification & installation @ 10% of above cost 21700
10 Office equipments like furniture, fan, typewriter etc. L.S. 50000
11 Pre-operative expenses 40000
TOTAL 328700

12 Working capital (Per month):

A: Staff & Labour:

[Link]. Description Nos. Salary Total
1 Manager 1 8000 8000
2 Salesman 2 3500 7000
3 Melter 1 7000 7000
4 Accountant/Clerk 1 5000 5000
5 Skilled Worker 2 3000 6000
6 Semi-Skilled Worker 2 2500 5000
7 Unskilled worker 4 2200 8800
8 Peon 1 3000 3000
9 Watchman 1 3000 3000
Total 52800
10 Add perquisite @15% of salary 7920
Total 60720

B. Raw Material (Per month)

[Link]. Particulars Qty. Rate(Rs.) Value
1 Copper Scrap, Kgs 3500 450 1575000
Total 1575000

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 C. Utilities (Per month)
1 Electricity 15000
2 Sulphuric Acid, 100 ltrs @Rs. 90/ltr. 9000
3 Furnace Oil, 1500 ltrs @Rs. 35/ltr. 52500
Total 76500
D. Other Contingent Expenses (Per month)
1 Rent 10000
2 Postage & Stationery 5000
3 Telephone 5000
4 Insurance 8000
5 Repairs & 10000
maintenance
6 Consumable Stores 10000
7 Misc. Expenses 7000
8 Transport allowances 10000
Total 65000

13 Total Working Capital (Per month) 1777220

14 Total Capital Investment

i) Fixed Capital 328700
ii) Working Capital 5331660
Total 5660360
15 Financial Analysis
a. Cost of Production (Per Year)
i) Total recurring cost 21326640
ii) Depn. on machinery & equipment @ 10% 38370
iii) Depn. on furnaces @ 20% 20000
iv) Depn. On office equipments @ 20% 10000
v) Interest on Total capital investment @12% 679243
Total 22074253

b. Turnover (Per Annum)

Copper Ingots, 37800 Kgs @ Rs. 605/- per kg = 23247000

c. Net Profit per year

Turnover per year - Cost of production = 1172747

d. Net Profit Ratio

(Net profit per year/ Turnover per year) X 100= 5.04 %

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e. Rate of Return
(Net profit per year/ Total investment) X 100= 20.72 %

f. Break-even Point
Fixed Cost
i) Rent 120000
ii) Depn. on machinery & equipment @ 10% 38370
iii) Depn. on furnaces @ 20% 20000
iv) Depn. On office equipments @ 20% 10000
v) Interest on Total capital investment @14% 679243
vi) Insurance 96000
vii) 40% of salary & wages 291456
viii) 40% of other contingent expenses 225600
excluding rent & insurance
Total 1480669

Break- Even Point (B.E.P.)

[Fixed Cost/ (Fixed cost + Profit)] X 100= 55.80 %

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NAMES & ADDRESSES OF MACHINERY AND RAW MATERIAL SUPPLIERS :

1. M/s. Hannu Metallurgical,

B-22,Girikunj Indsutrial Estate, Chakala, Mahakali Caves Road,
Andheri (East), Mumbai – 93 [Link]. (022)-26875545.
2. M/s. Mahavir Engineering Corpn.,
1, Ambica Estate, B/h. Agarwal I.E.,
off S.V. Road, Jogeshwari West,
Mumbai – 102. [Link]. (022)-56992785
3. M/s. Divecha Electrticals,
Balaji Indl. Complex,
Gala No. ½, Navaghar , Bhayandar (E), Distt. Thane.
4. M/s. Nisha Engrs. & Consultants
Nisha Enclave, Plot No. 95,
Sector 23, Cidco Indl. Area,Turbhe, Distt. [Link]. (022)-27684697
5. M/s. Combustion Equipments & Instruments,
Jer Mahal, Dhobi Talaw, 1st Floor,Mumbai –2. [Link]. (022)-27690171/27600842.
6. M/s. AIMIL Ltd.,
Malhotra House, Opp. G.P.O.,
Walchand Hirachand Marg,Mumbai – 1. [Link]. (022)- 22642435
7. M/s. Electroil Super Thermal Engineers,
151, Small Factory Area, Lakadganj,Nagpur – 8. [Link]. (0712)-2286284
8. M/s. G.R.C.
1, Taratala Road,
Kolkata-700024.
9. M/s. Standard Electricals
282, B.B. Chatterjee Road,
Kolkata-700042. Ph no. (033)- 24422063
10. M/s. Associated Engineers
32, G.C. Avenue,
Kolkata-13. Ph. No. (033)-40066117, 22126477, 24731518
11. M/s. Machine Tools Impex
75, S.C. Avenue,
Kolkata-700013. Ph no. (033)- 22377569, 65481114
12. M/s. Rana Udyog (P) Ltd.
NH-6, Vill.: Sulati, Dhulgarh,
Howrah -711303. [Link]. (033)- 26617891

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