PROJECT REPORT

ON
POWDER COATING

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding ‘Powder coating’

The objective of the pre-feasibility report is primarily to facilitate potential

entrepreneurs in project identification for investment and in order to serve his
objective; the document covers various aspects of the project concept
development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We
can also prepare project report on any subject as per your requirement.]

Lucknow Office:
Sidhivinayak Building , 27/1/B,
Gokhlley Marg, Lucknow-226001

Delhi Office :
Multi Disciplinary Training
Centre, Gandhi Darshan Rajghat,
New Delhi 110002
Email : [email protected]
Contact : +91 7526000333, 444,
555

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 PROJECT PROFILE ON
POWDER COATING

INTRODUCTION:

The Powder coating is a coating which is applied on the job in the powder form, it
does not require any liquid carrier while the paint can be applied on the job in the
liquid form only and requires the liquid carrier which causes the dropping sag, run
and storage problem etc. It is a dry paint, which gives almost 100% finish
maximum material use with no wastage in over spray, spillage etc.

MARKET POTENTIAL:

The powder consist of homogenous synthetic resin, pigments and other additives
and in some powders the hardener or cross linking agents are used. The powder
can be thermoplastic or thermosetting type. The thermoplastic materials like
polyethylene, PVC, PTFE etc. are more widely used. Now-a-days the powder
coating is find very wide applications in the sheet material components for the
purpose of protection as well as better looking. These components are steel
cabinet of Computers, VCR, VCP, Panel Boards of sophisticated equipment,
metal components in Telecom Industries, steel furniture, domestic appliances,
auto parts, hardware, machine parts and architectural section etc.

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The common problems observed are the difficulty in changing the colour and
peeling of the coating etc. For excellent results the seven tanks cleaning operation
can be applied on the job. Though this coating is costlier than the simple paint, its
long life and excellent looking proves to be cheaper.

BASIS & PRESUMPTIONS:

(i) The efficiency of machinery is taken at 60%. The unit will work on single
shift basis of 8 hrs. per day and 25 days in a month and 300 days in a year.
of the total production capacity.
(ii) The time period to achieve the full envisaged capacity utilization is 5year.
(iii) The labor wages are as per the prevailing rates in the market
(iv) The interest rate for fixed and working capital is taken as 11.00%.
(v) The margin money requirement will be 10% of the total cost of this project.
(vi) The payback period is 5 years.
(vii) The land requirement is 150 Sq. mtrs. And the built up area is 100 sq.mtr.

IMPLEMENTATION SCHEDULE:

Time required for preparation of Project report : One month

Selection of Site : One month
Registration as SSI Unit : One Week
Time required for acquiring the loan : Three months
Construction of building : Three months
Machinery procurement, commissioning & erection : One months
Recruitment of labourer etc. : One month
Trial runs : One month

TECHNICAL ASPECTS:

(iii) Process Outline:

First the surface which is to be coated is cleaned perfectly by giving a pre-
treatment i.e. degreasing, chromating so that the oil, grease, dust and rust should
not remain there. Now give a phosphate coat on the surface by phosphating
process, wash and dry the object. Dry powder is filled in a hopper

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where it is fluidised by low pressure gas. When it comes to the gun through a
flexible hose where it is electro-statically charged by a high voltage generator. An
electrostat field is produced between the gun nozzle and the earthed object, which
is already kept in spry booth. The powder particles get uniformly deposited on the
object. Now remove the objects from the spray booth and keep it in the oven at the
temp. approx. 150oC for 10 to 15 minutes the powder metals get polymerised and
form a solid hard film. The over sprayed powder is recovered by a separate
recovery system attached with the spray booth. Now remove the object from the
oven and it is the finished goods.

(iv) Quality Specification:

The BIS has not prepared any standards for this product, hence this product can be
made as per the customers’ requirement.

(v) Production capacity: (Per annum)

Quantity : 70,000 Sq. mtrs.

(vi) Approximate Motive Power:

The approximate Motive Power is required 30 KWH.
(vii) Pollution Control:
This unit does not make so much effluents because the water is used only
for cleaning and phosphating purposes.

(viii) Energy Conservation:

By adjusting the process and utilization of machinery the p r o p e r
utilization and conservation of the energy can be done.\
(ix) Labour Requirement:

4-5Manpower is required Includes:

2 skilled Labour /Technician
3 Unskilled Labour

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FINANCIAL ASPECT:

Product and By Product : Powder coating

Name of the project /
Powder coating
business activity proposed :
Cost of Project : Rs.14.86 Lacs
Means of Finance
Term Loan Rs.11.16 Lacs

As per Project Eligibility

KVIC Margin Money -
Own Capital Rs.1.49 Lacs
Working Capital Rs.2.22 Lacs
Debt Service Coverage
2.82
Ratio :
Pay Back Period : 5 Years
Project Implementation
6 Months
Period :
Break Even Point : 28%
Employment : 9 Persons
Power Requirement : 30.00 HP
Powder of Expoxy, Acrylic, Polyester, Hybrid &
Major Raw materials : Polyurethene
Estimated Annual Sales
35.77 Lacs
Turnover :

COST OF PROJECT
(Rs. In Lacs)
Particulars Amount
Land 150 sqmt Rented/Owned
Building & Civil Work (100Sqmt) 3.50
Plant & Machinery 7.80
Furniture & Fixtures 0.75
Pre-operative Expenses 0.35
Working Capital Requirement 2.46
Total 14.86

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MEANS OF FINANCE
Particulars Amount

Own Contribution @10% 1.49

Term Loan 11.16

Workign Capital Finance 2.22
Total 14.86
General 10%
Beneficiary's Margin Monery (% of Project
Cost) Special 5%

PLANT & MACHINERY

1 Tanks (for surface cleaningSystem, Pickling, phosphating etc.) 8 100000

2 Powder spray equipment output capacity 3kg.hr. attached with other 1 120000
accessories.
3 Powder spray booth with cyclone type recovery system, overall 1 120000
dimension 1.5x1.5x2.5 meters with blower motor 2 HP 5000 M3/hr.air
exhaust

4 Powder curing oven with dimension2x2.5x2M, heat load 15KW, max. 1 160000
temp. 200oC blower motor 1 HP
1.5 KW, 60/40 IR Con heater

5 Compressor 5000 M3/hr. cap 1 50000

6 Over Head Crane – 2 Ton capTesting equipment 1 50000

7 Pollution Control Equipment & facilities LS 100000

8 Electrification & Installation charges LS 80000
TOTAL 780000

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COMPUTATION OF MANUFACTURING OF POWDER COATING

Manufacturing Capacity per day 235.00 SQMT

No. of Working Hour 8
No of Working Days per month 25
No. of Working Day per annum 300
Total Production per Annum 70,500.00 SQMT
Year Capacity SQMT
Utilisation
IST YEAR 60% 42,300
IIND YEAR 65% 45,825
IIIRD YEAR 70% 49,350
IVTH YEAR 75% 52,875
VTH YEAR 80% 56,400

COMPUTATION OF RAW MATERIAL

Item Name Quantity of Recovery Unit Rate of Total Cost
Raw Material / Kg Per Annum (100%)
Kg
Powder of Expoxy,
Acrylic, Polyester,
100% 2,760.00 100.00% 450.00 12,42,000.00
Hybrid &
Polyurethene
Miscellaneous
chemicals for
100% - 100.00% 0.00 60,000.00
Cleaning &
phosphating etc.

Total 13,02,000.00
Annual Consumption cost ( In Lacs)
13.02

Raw Material Consumed Capacity Amount (Rs.)

Utilisation
IST YEAR 60% 7.81
IIND YEAR 65% 8.46
IIIRD YEAR 70% 9.11
IVTH YEAR 75% 9.77
VTH YEAR 80% 10.42
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COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

IST IIND IIIRD IVTH VTH

PARTICULARS YEAR YEAR YEAR YEAR YEAR
Finished Goods
(15 Days
1.02 1.12 1.23 1.35 1.47
requirement)
Raw Material
(15 Days
0.39 0.42 0.46 0.49 0.52
requirement)
Closing Stock 1.41 1.54 1.69 1.83 1.99

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Total
Amount
Stock in Hand 1.41
Sundry Debtors 1.32
Total 2.72
Sundry Creditors 0.26
Working Capital Requirement 2.46
Margin 0.25
Working Capital Finance 2.22

COMPUTATION OF SALE
Particulars IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR
Op Stock - 2,115 2,291 2,468 2,644
Production 42,300 45,825 49,350 52,875 56,400
42,300 47,940 51,641 55,343 59,044
Less : Closing Stock 2,115 2,291 2,468 2,644 2,820
Net Sale 40,185 45,649 49,174 52,699 56,224
Sale Price per Sqft 60.00 61.20 62.42 63.67 64.95
Sale (in Lacs) 24.11 27.94 30.70 33.55 36.52

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PROJECTED PROFITABILITY STATEMENT

IST IIND IIIRD IVTH VTH

PARTICULARS YEAR YEAR YEAR YEAR YEAR
A) SALES
Gross Sale 24.11 27.94 30.70 33.55 36.52
Scrap sale 15 MT
@15000/MT 2.25 2.25 2.25 2.25 2.25
Total (A) 26.36 30.19 32.95 35.80 38.77
B) COST OF SALES
Raw Mateiral Consumed 7.81 8.46 9.11 9.77 10.42
Electricity Expenses 2.58 2.79 3.01 3.22 3.44
Repair & Maintenance - 0.28 0.31 0.34 0.37
Labour & Wages 4.09 4.50 4.95 5.45 5.99
Depriciation 1.56 1.38 1.19 1.03 0.89
Consumables and Other
Expenses 1.32 1.51 1.65 1.79 1.94
Cost of Production 17.36 18.93 20.22 21.59 23.04
Add: Opening Stock /WIP - 1.02 1.12 1.23 1.35
Less: Closing Stock /WIP 1.02 1.12 1.23 1.35 1.47
Cost of Sales (B) 16.34 18.82 20.11 21.48 22.92
C) GROSS PROFIT (A-B) 10.02 11.37 12.84 14.33 15.84
42% 41% 42% 43% 43%
D) Bank Interest (Term Loan
) 0.92 1.11 0.81 0.50 0.20
Bank Interest ( C.C. Limit ) 0.22 0.22 0.22 0.22 0.22
E) Salary to Staff 2.11 2.32 2.56 2.81 3.09
F) Selling & Adm Expenses
Exp. 0.48 0.56 0.61 0.67 0.73

TOTAL (D+E) 3.74 4.22 4.20 4.20 4.24

H) NET PROFIT 6.28 7.15 8.64 10.13 11.60

I) Taxation - 0.72 1.73 2.03 2.32

J) PROFIT (After Tax) 6.28 6.44 6.91 8.10 9.28
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 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
reflect the views of the industry which are drawn from various research material
sources from internet, experts, suppliers and various other sources. The actual cost
of the project or industry will have to be taken on case to case basis considering
specific requirement of the project, capacity and type of plant and other specific
factors/cost directly related to the implementation of project. It is intended for general
guidance only and must not be considered a substitute for a competent legal advice
provided by a licensed industry professional. SAMADHAN hereby disclaims any and
all liability to any party for any direct, indirect, implied, punitive, special, incidental or
other consequential damages arising directly or indirectly from any use of the Project
Report Content, which is provided as is, and without warranties.

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