Starta a Tyre Retreading (By Cold Process) Unit

       
(242) Starta a Tyre Retreading (By Cold Process)  Unit


         

Retreading of damaged tyre is done by conventional hot matrix curing in most cases. But recently a new technology has been developed called “Precured Tread Rubber Retreading Process” which is commonly known as “Cold Process Retreading”. In this process, the Precured Tread Rubber already has a tread pattern on it eliminating the need for a tread matrix at vulcanizing stage. Tread Rubber is precured along with other raw materials and manufactured in the factory under controlled conditions and given a well researched pattern ensuring that the transporter gets a reliable perfectly finish product. Retreading Tyre by precured method gives 50% more mileage than the tyre retreaded by conventional process.

Market Potential

The market demand of tyre retreading by cold process is increasing day by day. There is a good scope for setting up units for tyre retreading by cold process using procured tread rubbers.

Basis and Presumptions

This project profile has been prepared based on the following presumptions:

1. Production capacity is calculated on single shift of 8 hours a day for 300 working days in a year at 75% efficiency.

2. Capacity utilization is 60% during first year 80% in second year and full capacity utilization from 3 rd year onwards.

3. The salaries and wages, cost of raw material, utilities, cost of the shed etc. are based on prevailing rates in and around local region hence cost factor is likely to vary with location of the units.

4. Interest on terms loan and working capital has been taken @ 12% on an average. The rate may vary depending upon policy of financial institutions and agencies from time to time.

5. The cost of machinery and equipments refers to particular make and model and prices are approximate to those ruling at the preparation of the same.

6. The project preparation cost, nonrefundable deposits, may be considered under the head of preoperative expenses.

7. The break even point is calculated on full capacity utilization.


8. Power at the rate of Rs. 5.5 /KW is taken.

9. The operation period of this project is estimated to be about 10 years considering technology obsolescence.

Implementation Schedule

Sl.No.	Activity	Period
1.	Site selection preparation of project report and other formalities, application for loan and finance/ disbursement and, DIC registration etc.	6 months
2.	Seeking quotation for machines, purchase, installation and power connection, obtaining clearances from Pollution Control Board and other Govt. bodies and agencies.	3 months
3.	Procurement of raw material, recruitment of staff and labour and commercial production	3 months
4.	Total period required for commencing commercial production.	12 months

Technical Aspects
Process of Manufacture

The tyre coming from the customers is cleaned dully. Dust and mud are removed. The casing is inspected for cuts, ply section, condition of beads etc., and based on the condition of the casing, the tyre is selected or rejected. Under inflated conditions the selected tyre's crown area is buffed to the required texture and contour. This is for better bonding of procured rubber to the casing. The buffed casing is mounted on the tread building machine. Cushion compound is applied on the buffed tread area over which the procured tread rubber is applied and stickled using rollers. The joint portion of the procured tread rubber is stepped to avoid possible opening during curing of the tyre. The build up of the tyre is covered by a rubber envelope and placed in the “bonder” and the bonder steam is passed at specific temperature, which cures the cushion compound to complete the bonding of the tread on the casing.

Quality Control and Standards 

No such standard is available but the treading will be done as per the specifications fixed by tyre manufacturers.

Production Capacity (per annum)

1. LCV Tyre retreading Size-700×15	2400 Nos.
2. Passenger Car Tyre Retreading Size-590×15	3600 Nos.
3. Truck Tyre Retreading Size-300×20	3000 Nos.

Motive Power

20 HP.

Pollution Control

Tyre Retreading work generally should not be done in public place and NOC from Pollution Control Board may be obtained.

Energy Conservation

All efforts are to be put in for optimum utilization of power. The following measures can be adopted to conserve power and save energy:

1. Proper maintenance of power operated equipments and machinery and fuel operated boiler and their judicious use.

2. Shed to be properly ventilated and covered with transparent sheet to have enough light in day time with minimum requirements of lighting.

Financial Aspects
A Fixed Capital

(i) Land and Building	Amount (In Rs.)
(i) Land 300 sq. mtr. @ Rs. 5000 per sq. mtr including registration	1500000
ii) Cost of land development, fencing, approach road, inside roads, land scaping, drainage etc. @ Rs. 1000 per sq. mtr.	300000
(iii) Total built-up area 250 sq. mtrs. as follows:
Administrative building 50 sq. mtrs. construction cost @ Rs. 7,500 per sq. m	375000
Hall cum shed 150 sq. mtrs. construction cost @ Rs.6000 per sq. mtr.	900000
Stores, staff canteen etc. 50 sq. mtrs. @ Rs. 6,000 per sq. mtr.	300000
Water System (including Bore Well + over head tank etc)	500000
Total civil cost= cost of land + building	3875000

(ii) Machinery and Equipment

Sl. No.	Particular	Ind./ Imp.	Qty. Nos.	Price(Rs.)	Total (In Rs.)
1.	Buffing machine with dust collector builder tyre truck bonder/three tyre LCV/Passenger bonder with curing rims and Electric hoist	Ind	1	750000	750000
2.	Work bench Envelope/Tyre stand Gantry	Ind.	1	60000	60000
3.	Boiler cap. 300 kg/hrs.	do	1	400000	400000
4.	100 Ibs working pressure Air compressor fitted with 5 H P Motor	do	1	70000	70000
5.	Air conditioner	do	1	50000	50000
Total					1330000
Electrification and Installation at 10% of the above cost					133000
Office Equipments and Furniture. LS					80000
Cost of Auxiliary items. i.e. pipe erection Electric fittings, Retreading, Tools, Mechanical Hoist with Trolley etc.					200000
Total					1743000
(iii) Pre-operative Expenses					50000
Total Fixed Capital Requirement (i)+(ii)+(iii)					5668000

B. Working Capital (per month)

(1) Personnel

Sl.No.	Designation	Nos.	Salary (Rs.)	Amount (In Rs.)
1.	Manager	1	15000	15000
2.	Supervisor (Technical)	1	10000	10000
3.	Skilled Workers	5	7000	35000
4.	Semi-skilled Workers	6	5000	30000
5.	Un-skilled Workers/ Helper	3	3000	9000
6.	Clerk cum Typist	1	6000	6000
7.	Salesman	1	8000	8000
8.	Office Assistant- cum-peon	1	3000	3000
9.	Watchman	1	3000	3000
Total				119000

(ii) Raw Material (per month)

Sl. No.	Particular	Qty.	Unit	Price(Rs.)/Unit	Total (In Rs.)
a) For Retreading 200 LCV Tyre in Precured System
i)	Precured Tread Rubber	1000	Kg	110	110000
ii)	Cushion Compound	100	Ltr	100	10000
iii)	Vulcanising Solution	60	Ltr	90	5400
iv)	Envelope	200	Nos	10	2000
Total					127400
b) For Retreading 300 Passenger Car Tyre in Precured System
i)	Precured Tread Rubber	900	kg	110	99000
ii)	Cushion Compound	105	Ltr	100	10500
iii)	Vulcanising Solution	75	Ltr	90	6750
iv)	Envelope	300	Nos	10	3000
v)	Curing Bag	300	Nos	8	2400
Total					121650
c) For Retreading 250 Nos. Truck Tyre in Precured System
i)	Precured Tread Rubber	2375	kg	110	261250
ii)	Cushion Compound	252	Ltr	100	25200
iii)	Valcanising Solution	250	Ltr	90	22500
iv)	Envelope	250	Nos	10	2500
v)	Curing Bags	250	Nos	8	2000
Total					313450
Total Raw Material(a)+(b)+(c)					562500

(iii) Utilities (per month)	(In Rs.)
Power @ Rs. 5.5 for 3600 units	19800
Fuel for Boiler	30000
Total	49800

(iv) Other Contingent Expenses	(In Rs.)
2. Postage and Stationery	3000
3. Insurance and Taxes	4000
4. Telephone	3000
5. Repair and Maintenance	5000
6. Publicity and Advertisement	10000
7. Travelling and Transport	15000
8. Renewal and Replacement	5000
9. Other Miscellaneous Expenses	15000
Total	60000

(v) Total Recurring Expenses	(In Rs.)
1. Staff and Labour	119000
2. Raw Material	562500
3. Utilities	49800
4. Other Contingent Expenses	60000
Total	791300

(vi) Total Working Capital for 2 Months
Rs. 791300 x 2 =	1582600

C. Total Capital Investment

1. Fixed Capital	5668000
2. Working Capital (for 2 month)	1582600
Total	7250600

Financial Analysis

(1) Cost of Production (per annum)	(In Rs.)
1. Recurring Expenses	9495600
2 Depreciation on Building @ 5 %	193750
3. Depreciation on Machinery @ 10%	133000
4. Depreciation on tool and Fixtures @ 20%	40000
5. Depreciation on Furniture and Office Equipments @ 20%	16000
6. Interest on Total Capital Investment @ 12%	870072
Total	10748422

(2) Turnover (per annum)

Precured Retreaded Charge for LCV
	Tyre size -700×15, 2400 Nos. × Rs. 1200
	2880000
b) Passenger Car Tyre Size - 590×15
	3600 Nos. x Rs. 1000
	3600000
c) For Truck Tyre Size - 300 × 20
	3000 Nos. x Rs. 2000
	6000000
Total	12480000

(3) Profit (per annum)		Sales – Cost of Production
	=	12480000– 10748422
	=	1731578
(4) Net Profit Ratio	=	Profit (per annum) × 100 --------------------
		Sale (per annum)
	=	1731578× 100 -------------------
		12480000
	=	13.87
(5) Rate of Return	=	Profit (per annum) × 100 ---------------------------
		Total Capital Investment
		1731578 ×100 ---------------
		7250600
	=	23.88

(6) Break-even Point

Fixed Cost	(In Rs.)
1 Depreciation on Building @ 5 %	193750
2. Depreciation on Machinery @ 10%	133000
3. Depreciation on tool and Fixtures @ 20%	40000
4. Depreciation on Furniture and Office Equipments @ 20%	16000
5. Interest on Total Capital Investment @ 12%	870072
6. 40% of Salary and Wages	571200
7. 40% of Utilities and Other Contingent Expenses	527040
Total	2351062

B.E.P	=	Fixed Cost x 100 -----------------------
		Fixed Cost + Profit
	=	2351062 x 100 -----------------------
		2351062 + 1731578
	=	57.59

Addresses of Machinery Suppliers 

1. M/s. Security Equipment Engineers
48, Chetla, Road,
Kolkata- 700027

2. M/s. Industrial Rubber Products
20, Khanpara Road,
Kolkata - 700065

3. M/s. Nandi and Co.
125, Belilious Road,
Howrah - 711101 (WB)

4. M/s. Chand and Co. Engineering Pvt. Ltd.
3/18, Mahendra Road,
Kolkata-700025

5. M/s. Die Hard Polimer Products
117, Ghorkha Basi Road,
Kolkata - 700028

Addresses of Raw Material Suppliers

1. Local Market

2. M/s. H. K. Agarwal and
Co. Sevoke Road,
Siliguri–734401

3. M/s. Beekay Hardware
Tadong, Gangtok,
Sikkim–737102

4. M/s. Cherry. Pvt. Ltd.
31-A National Highway, Gangtok,
Sikkim–737101

5. M/s. Vinod Enterprises
Near Convey Ground, Tadong,
Gangtok,
Sikkim–737101