Every Printed Circuit Board in every electronic product can become functional only when the connections are formed with electrical pathways of Copper. This pathway is provided by the Copper foil in a laminated construction The foil should be of the highest quality electronic grade, with 99.99% purity and microscopically clean surface finish.
2. THE MARKET:
The demand for Copper foil is driven by the PCB manufacturing activity which in turn is driven by the demand for the wide variety of electronic equipment. The world market for Copper foil has been estimated to exceed 70,000 MT by volume and US$ 700 million by value. The market has been growing at a healthy pace of 16% per annum. Maximum growth is from the Computer and Communication industries, which are growing at 25 to 30% per annum. The projected world demand for Copper foil by the year 2000 was 100,000 MT, representing a value of US$1 billion. As against this, the current production of 60,000 MT is expected to increase to 75,000 MT with the new capacities under planning/implementation. Hence there would be a demand supply gap of 25,000 MT, justifying the need for additional capacities to come up. The US Collaborator would undertake to market 75% of the production of the proposed facility.
3. THE COLLABORATOR:
The US Collaborator has been manufacturing Copper foil for the last 17 years and is a well accepted supplier in the market. They are a part of independently owned international group of companies, with total sales exceeding US$100 million. They are currently executing two Copper foil projects in Taiwan and China, for expanding their share in the fast growing market.
4. THE TECHNOLOGY:
Electro-deposition process of manufacturing Copper foil, is an established but closely held technology. The facility proposed here will be modern, incorporating automation at all possible stages of the processing. The main raw materials used are No.l grade scrap copper wires and 10% Sulphuric acid. The plant will have Electroforming machines with Titanium drums, Treaters, Slitters and Waste water treatment plant to re-cycle 90% of the water. The collaborator would supply the complete technology and training and arrange for supply of machinery from a world renowned manufacturer, as part of his turn-key contract.
5. THE PROPOSAL:
5.1 Capacity of the Plant: 2000MT per annum ( 3 Shifts/day x 300 days)
5.2 Capital Cost: US$ 34.85 million or Rs. 164 Crores
5.3 Land Required 3 acres, Building 50,000 Sq.Ft (Special building requirement 20% of the building will have Clean room, humidity control facility)
5.4 Manpower Required Supervisors/Managers 18 Skilled Labour: 46 Semi-skilled Labour 10 Unskilled Labour 6
5.5 Utilities Required: Power 4000 kW (220V / 440V). Steam: 10 Kg/Sq.cm Water: 30,000 K.Litres/annum(for process) Compressed Air: 180Cu.mtr/hr.
5.6 Financial Viability: Pay back period: 4 years and 8 months
5.7 Implementation time: 14 to 16 months
5.8 Marketing: 75 % of the production will be marketed by the US Collaborator. The remaining 25% can be marketed directly, as there is good demand for the product worldwide.
6. Location justification:
The raw material scrap copper is available internationally from several sources at competitive prices. The end user industry has been growing in Asian countries, particularly in India, Malaysia, Korea, Japan, Taiwan and China. Hence, India with its excellent infrastructure facilities and with ready access to the high growth user markets, would be a good location for setting up the Copper foil facility
7. PROJECT COST:
in million US$
Land (3 acres) 0.08 Building (50000 Sq.feet) 3.50 Machinery - Imported 25.00 Machinery - Indian 5.80 Technology & Training 0.80 Other fixed assets 0.25 Pre-operative expenses 0.56 Margin for working Capital 0.38 Contingencies 1.00 Total 34.85
or Rs.164 Crores
8. PROFITABILITY ANALYSIS FOR 5 YEARS:
Installed Capacity of the Plant: Metric Tons per annum 2000 I year II year III yearIV year V year Capacity Utilstn.(%) 60 75 85 95 95 Cu.Foil 17 micron 45 45 45 45 45 Cu.Foil 35 micron 50 50 50 50 50 Cu.Foil 70 micron 5 5 5 5 5 Cap.Utilstn.( MT). 1200 1500 1700 1900 1900 Cu.Foil 17 micron 540 675 765 855 855 Cu.Foil 35 micron 600 750 850 950 950 Cu.Foil 70 micron 60 75 85 95 95 VARIABLES CuFoil17 CuFoil35 CuFoil70 Sales Prices (US$/MT) 12540 7700 7480 RM Cost (US$/MT) 1870 1870 1870 Power (kWh/MT)-for all products 12000 Other Consumables(US$/MT) 390 Water (kl-/MT)-for all products 50 Maintenance (US$/MT) 42 Other Factory Over heads(US$/MT) 28 ITEM (US$ in Millions.) I Year II Year III YearIV Year V Year Total Sales 11.84 14.80 16.77 18.75 18.75 Raw Material 2.24 2.80 3.17 3.55 3.55 Power 0.80 1.13 1.26 1.26 1.26 Water 0.16 0.21 0.24 0.26 0.26 Wages 1.36 1.50 1.65 1.82 2.00 Other Consumables 0.47 0.58 0.66 0.74 0.74 Maintenance 0.05 0.06 0.07 0.08 0.08 Other Fctry. 0/heads 0.03 0.04 0.05 0.06 0.06 MANUPCTG. COST 4.11 6.19 6.97 7.77 7.77 Admin. Salaries 0.30 0.31 0.32 0.33 0.33 & Overheads Depreciation 3.24 3.24 3.24 3.24 3.24 Prelim.exp. W/off. 0.10 0.10 0.10 0.10 0.10 Total ADMIN.Expenses 3.84 3.85 3.86 3.87 3.87 TOTAL COST 7.95 10.04 10.83 11.64 11.64 GROSS PROFIT BEF.TAXES 3.89 4.76 5.94 7.11 7.11 GROSS PROFIT IN CRORES 18.28 22.37 27.92 33.42 33.42