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Profile on Medium Sized Plain and Studded GOLD & SILVER JEWELLERY Casting Project

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Introduction:

Manufacturing of jewellery through investment casting process has become very popular all over the world. In developed countries and also in most of the Far-East countries manufacturers of gold and silver jewellery are using this process irrespective of their scale of production. It is catching up very fast in India as well and almost all of the factories situated in various Export Promotion zones have based their manufacturing on casting process only. This works out to be the best option as it employs the capabilities of machine for quantity and excellence of artisans for quality production. This profile has been drawn to set-up a medium sized factory.

Capacity:

The total installed capacity of the project is estimated to be 6000 Kgs. of Gold/Silver jewellery.

Capacity utilization has been estimated as under:

Year of Production

I

II III IV V
Capacity Utilization 30% 35% 40% 45% 50%
 i) Gold   5% 7% 10% 15% 20%
 ii) Silver  25% 28% 30% 30% 30%

Cost of Project:                                         

                                                                                     Rs. Lacs

                   1.      Land and Development                              6.50     

                   2.      Building                                                   50.58

3.      Plant & Machinery

i.      Indian                                           5.00

ii.     Imported                                     45.00

iii        Training and Installation               1.00

        4.  Miscellaneous Fixed Assets                      16.50

        5.  Preliminary Expenses                                  5.00

        6. Pre-Operative Expenses                              1.50

        7. Contingency                                                 5.00

         8. Margin money for Working Capital            35.30                                                                                                                                             -------------------                                                                                                                          Total                   171.38

 Means of Finance:

                i.  Promoter’s Contribution                                  77.95

               ii.  Term Loan                                                      93.43                                                                                                                                                ---------------------
                                                           
Total                   171.38

Location:

No specific location has been proposed for this project as it can be set up in any industrial or commercial area having specific security. The cost of land for the present profile has been taken @ Rs. 650.00 per sq. meter for a plot of 1000 sq. meter and only one floor of building has been proposed to be built. But considering the cost of land at a higher rate at certain places, the same project can be set up on a smaller plot of land with a multi-floor construction.

Main Plant & Machinery :

i.                     Digitally controlled Vulcanizer

ii.                   Vacuum Wax injection system

iii.                  Investment vaccumizer-cum-embedding machine

iv.                 Dewaxing furnace

v.                   Digitally controlled Burn out Furnaces

vi.                 Computer controlled Vacuum Pressure casting machine

vii.                Variable Speed Magnetic Polisher

viii.              Variable Speed Vibrating Polisher

ix.                 Buffing Machines with suction device

x.                   Flexible shaft finishing and setting motors.

xi.                 Work benches for finishing and setting artisans.

Miscellaneous Fixed assets:

i.                     Power Generator                       

ii.                   Air conditioners

iii.                  Personal Computers

iv.                 Fax Machines and Photocopier

v.                   CCTV and other security devices     

vi.                 Office furniture and fixtures

vii.                Safe Vault for precious metals

viii.              Plumbing and drainage system

ix.                 Electric installations.

x.                   Vehicle for the factory

xi.                 Miscellaneous tools and equipment.

 

Man Power Requirements:

       i.            Administration                               20

ii.                   Sales                                               9

iii.                  Production-Direct                         88

iv.                 Production Indirect                       15

                                                              -------

Total                                     132

  

Production Plans, Sales Revenue and Profitability:

Year I II III IV V
Production in Kgs.          
Gold Jewellery 300 420 600 900 1200
Silver Jewellery 900 1008 1080 1080 1080
Sales Revenue (in Rs. Lacs)          
Exports 89.10 246.76 316.88 421.86 526.84
Local Sales 961.56 1589.22 2239.00 3311.52 4384.04
Profitability (net after taxes) 6.12 48.52 95.38 162.56 259.16