STONE CRUSHER

1. INTRODUCTION:

Crushed stone is also known as metal jelly. Crushed stone is segregated into
various sizes viz. 35mm, 20mm, 12mm etc. for different uses. Crushed stone
aggregates are used for construction of roads, bridges, housing, industrial
building construction and other cement based products like RCC pipes, PSC poles,
pre-moulded slabs, frames and beams etc. for fabrication.

2. PRODUCT & ITS APPLICATION:

Stone crushing industry is an important industrial sector in the country. The

crushed stone is
Then used as raw material for various construction activities i.e. construction of
roads, bridges, buildings and canals. Over the last 10 years, the Construction
sector has been registering strong growth rates in the range of 7-8%. Housing
and construction is one of the major drivers of growth in more than 40 allied
industries including STONE CRUSHING. In addition, for the building of roads,
flyovers and bypasses, there is a mass and consistent need of crushed stone
across the country. Several projects are in progress and are being commenced
shortly which will have high demand of crushed stone all over the country. In
order to make up the backlog and meet the projected requirements for the next
20 years, overall housing construction has to raise 500,000 housing units per
annum. The area under consideration is badly affected by the earthquake and
rehabilitation and reconstruction is in process. This process leads to construction
of roads, bridges, new houses; markets, etc. resultantly gear up construction
activities and more use of crushed stones. Construction of Diamir-Basha Dam and
Kohala Hydro –Electric Project are also synergic factor for this project. The
aforementioned facts and statistics provide enough evidences, assuring a steep
and continuous growth vis a vis investment opportunity in the STONE CRUSHING
business. There are increasing allocations from budget in the Public Sector
Development Projects of Pakistan. There is sufficient skilled labor available at less
cost to run the project. The raw material is abundantly available. If the machinery
needs to be imported there are less import duties. The availability of initial
depreciation made the project pragmatically five years tax free. There is need to
employ latest and modern exploration techniques and machinery. The lack of
coordination among various mineral sector agencies is also point of concern for
the stone crushing industry.

3. DESIRED QUALIFICATIONS FOR PROMOTER:

Graduate in any discipline. Promoter with high skill of chemical processing and
having contacts with building and construction industries is advantage.

4. INDUSTRY LOOK OUT AND TRENDS

At present, most of the mining crushing and industrial sand making plant
produced a lot of limestone powder waste (limestone powder content is high).
This not only pollute the environment, and the raw material waste is serious. It is
imperative to find a reasonable solution to deal with limestone powder waste
"waste into treasure".

The results show that the limestone powder as the admixture of concrete has the
effect of improving the concrete structure, enhancing the workability of anti -
sulphate attack ability of concrete under low temperature. In recent years,
limestone powder into the concrete as a binder has become the hot topic and
development trend in the concrete industry.

Commercial concrete mixing plant generally uses 325 mesh limestone powders;
the sieving rate is not less than 85%. The research shows that C30 ~ C50
limestone powder for concrete can be produced completely.

5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

Stone Crushing Industry is an important industrial sector in the country engaged
in producing crushed stone of various sizes depending upon the requirement
which acts as raw material for various construction activities such as construction
of Roads, Highways, Bridges, Buildings, and Canals etc. It is estimated that there
are over 12,000 stone crusher units in India. The number is expected to grow
further keeping in view the future plans for development of infrastructure of
roads, canals and buildings that are required for overall development of the
country. In India, the Stone Crushing Industry sector is estimated to have an
annual turnover of Rs. 5000 crore and is therefore an economically important
sector. The sector is estimated to be providing direct employment to over
500,000 people engaged in various activities such as mining, crushing plant,
transportation of mined stones and crushed products etc. Most of these
personnel are from rural and economically backward areas where employment
opportunities are limited and therefore it carries greater significance in terms of
social importance in rural areas. It is a source of earning for uneducated poor
unskilled rural people. Since it is an allied industry of the construction sector,
growth in construction sector may be considered as proxy for the growth in stone
crushing sector, The market scope for crushed stone is found to be encouraging
in local market with the increased demand from building industry & construction
fields. There is also a sufficient demand from Government. Contractors for lying
of roads and construction of industries etc. The entry in the target market is easy
and there is a narrow gap in the supply and demand, which is expected to grow
in the coming years. Stone Chips are primarily used in construction activities
including Building, Roads, and Bridges etc. Since the area is undergoing
tremendous infrastructure development work. Apart from above the Road
Construction work under P.W.D., P.M.G.S.Y increased vast scope for this unit.
Looking at the huge demand potential, easy marketing is possible.

6. RAW MATERIAL REQUIREMENTS:

Raw materials required for this project is granite stone boulders of various sizes.
Basic raw material is boulder and same shall be obtained from rocks. Hard Lime
and granite Stone will be used as raw material for manufacturing crushed stone.
Raw stone could be purchased directly from the excavator (quarry lease holder)
or crusher may hold his own quarry lease to produce raw stone. It is
recommended to obtain a quarry lease holding to avoid any possible threat in
procuring raw stone as well as to keep the project economically stable. For the
proposed project, a total of 15,000 C.ft. of Hard Lime/granite Stone would be the
daily requirement. This requirement could sufficiently be fulfilled from the
obtained quarry site over a period of years.

7. MANUFACTURING PROCESS:

It is advantageous if the crushed stone unit is set up near the queries where the
granite boulders of various sizes are available for the crushing unit. The wastage
from the granite industry will be of much use to the crushed stone unit. The
granite stones of various sizes are fed into the jaw crushers for size reduction.
Depending on the desired output size of the crushed stone, the raw materials
may be fed to one or two jaw crushers in a sequence. Then these crushed stones
are passed on to the rotary screen for size gradation. Material is handled through
a belt conveyor to the different places of operation. The main machinery involved
in the stone crushing industry is Hammer Crusher, Screen, Conveyors etc. The
process involved is to feed the stone in to the Hammer Crushers to make it
further smaller in size as required by the customer. In the hammer crusher, the
stone is crushed. The crushed stone is screened to separate the produce in
different sizes by the separator. The crushed stone is conveyed by the conveyors
to trucks for transport to the market place or storage area.

8. MANPOWER REQUIREMENT:

Sr. No. Designation of Salary Per Monthly

Number of employees required
Employees Person Salary ₹

Year-1 Year-2 Year-3 Year-4 Year-5

Variable Labour:
1 Machine Operators 12,000 24000.00 2 2 2 2 2
 2 Helpers 8,000 64000.00 8 8 8 10 10
sub-total 88000.00 10 10 10 12 12
Fixed Staff:
1 Production supervisor 15,000 15000.00 1 1 1 1 1
2 Accounts/Stores Asst 12,500 25000.00 2 2 2 3 3
3 Office Boy 9,000 9000.00 1 1 1 1 1
sub-total 49000.00 4 4 4 5 5
137000.0
Total 14 14 14 17 17
0

9. IMPLEMENTATION SCHEDULE:

The project can be implemented in 4 months’ time as detailed below:

Sr. No. Activity Time Required (in

months)
1 Acquisition of premises 1.00
2 Construction (if applicable) 1.00
3 Procurement & installation of Plant & Machinery 1.00
4 Arrangement of Finance 2.00
5 Recruitment of required manpower 1.00
Total time required (some activities shall run 4.00
concurrently)

10. COST OF PROJECT:

₹ in
Sr. No. Particulars
Lacs
1 Land 5.00
2 Building 15.00
3 Plant & Machinery 15.20
4 Furniture, Electrical Installations 1.52
Other Assets including Preliminary / Pre-operative
5 1.82
expenses
6 Working Capital 40.00
Total 78.54

11. MEANS OF FINANCE:

Bank term loans are assumed @ 75 % of fixed assets. The proposed funding
pattern is as under:
₹ in
Sr. No. Particulars
Lacs
1 Promoter's contribution 21.51
2 Bank Finance 57.03
Total 78.54

12. WORKING CAPITAL CALCULATION:

The project requires working capital of ₹ 40.00lacs as detailed below:

Margin
Sr. No. Particulars Gross Amt Margin % Bank Finance
Amt
1 Inventories 20.00 0.25 5.00 15.00
2 Receivables 8.00 0.25 2.00 6.00
3 Overheads 12.00 100% 12.00 0.00
4 Creditors - 0.00 0.00
Total 40.00 19.00 21.00

13. LIST OF MACHINERY REQUIRED:

A detail of important machinery is given below: Power Requirement: 200 HP

Value
Sr. No. Particulars UOM Qtty Rate (₹)
(₹ in Lacs)
Plant & Machinery /
equipments
a) Main Machinery
Jaw crusher 400X225mm
i. NOS. 1 520000 5.20
25HP
Jaw crusher 350x150 mm
ii. Nos 1 450000 4.50
25HP
iii. Rotary screens for 35 mm, Nos 1 300000 3.00
b) Ancilliary machinery
Belt conveyor with 15 HP
i. Nos 1 100,000 1.00
motor
 Pollution control cyclonic
ii. NOS. 1 150000 1.50
dust
sub-total Plant & Machinery 15.20
Furniture / Electrical
installations
a) Office furniture LS 1 100000 1.00
Sr. No. Particulars UOM Qtty Rate (₹) Value
b) Stores Almirah LS 1 15,000 0.15
c) Computer & Printer L. S. 37000 0.37
sub total 1.52
Other Assets
preliminary and
a) 1.82
preoperative
sub-total Other Assets 1.82
Total 18.54

All the machines and equipment are available from local manufacturers. The
entrepreneur needs to ensure proper selection of product mix and proper type of
machines and tooling to have modern and flexible designs. It may be worthwhile
to look at reconditioned imported machines, dies and tooling. Some of the
machinery and dies and tooling suppliers are listed here below:

 Kamdhenu Agro Machinery

Plot No. 6, Near Power House,
Wathoda Road, Wathoda
Nagpur - 440035
Maharashtra, India

 Future Industries Private Limited

Shed No. 15, Ambica Estate,
Corporation Municipal Plot,
Opposite Sadvichar Hospital,
Naroda, Ahmedabad - 382330,
Gujarat, India

 The Global Pharma Equipments

 Star Industrial Estate,
D-32, Naik Pada,
Near Hanuman Mandir,
Opposite Dwarka Industrial Estate,
Vasai East, Vasai - 401208,
Maharashtra, India

14. PROFITABILITY CALCULATIONS:

Year-
Sr. No. Particulars UOM Year-1 Year-3 Year-4 Year-5
2
1 Capacity Utilization % 60% 70% 80% 90% 100%
₹. In 105.0
2 Sales 90.00 120.00 135.00 150.00
Lacs 0
Raw Materials & Other ₹. In
3 73.18 85.37 97.57 109.76 121.96
direct inputs Lacs
₹. In
4 Gross Margin 16.82 19.63 22.43 25.24 28.04
Lacs
Overheads except ₹. In
5 5.14 5.47 6.11 6.30 6.43
interest Lacs
₹. In
6 Interest 5.70 5.70 3.80 2.85 2.28
Lacs
₹. In
7 Depreciation 10.64 7.60 5.32 3.80 3.42
Lacs
₹. In
8 Net Profit before tax -4.66 0.86 7.20 12.28 15.91
Lacs

The basis of profitability calculation:

The growth of selling capacity will be increased 10% per year. (This is assumed
by various analysis and study; it can be increased according to the selling
strategy.)

Energy Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs. 65
per litre. The depreciation of plant is taken at 10-12 % and Interest costs are
taken at 14 -15 % depending on type of industry.
 15. BREAKEVEN ANALYSIS:

The project shall reach cash break-even at 30.20 % of projected capacity as

detailed below:

Sr. No. Particulars UOM Value

1 Sales at full capacity ₹. In Lacs 150.00
2 Variable costs ₹. In Lacs 121.96
3 Fixed costs incl. interest ₹. In Lacs 8.71
BEP = FC/(SR-VC) x 100
4 % of capacity 31.07%
=

16. STATUTORY / GOVERNMENT APPROVALS

As per the allocation of business rules under the Constitution, labour is in the
concurrent list of subjects. It is dealt with by the MOLE at the Central and
Departments of Labour under State Governments in respective States / UTs. The
MOLE has enacted workplace safety and health statutes concerning workers in
the manufacturing sector, mines, ports and docks and in construction sectors.

Further, other Ministries of the Government of India have also enacted certain
statutes relating to safety aspects of substances, equipment, operations etc.
Some of the statutes applicable in the manufacturing sector are discussed below:

The Static and Mobile Pressure Vessels (Unfired) Rules, 1981

These (SMPV) Rules are notified under the Explosives Act, 1884. These rules
regulate storage, handling and transport of compressed gases. These rules
stipulate requirements regarding construction and fitments, periodic testing,
location, fire protection, loading and unloading facilities, transfer operations etc.
in respect of pressure vessels whose water capacity exceeds one thousand litres.
These rules are enforced by the Chief Controller of Explosives under the Ministry
of Industry and Commerce, Govt. of India (PESO).
The Manufacture, Storage and Import of Hazardous Chemicals Rules
(MSIHC), 1989

These MSIHC Rules are notified under the Environment (Protection) Act, 1986.
These rules are aimed at regulating and handling of certain specified hazardous
chemicals. The rules stipulate requirements regarding notification of site,
identification of major hazards, taking necessary steps to control major accident,
notification of major accident, preparation of safety report and on-site emergency
plan; prevention and control of major accident, dissemination of information etc.
These rules are notified by the Ministry of Environment and Forests (MOEF) but
enforced by the Inspectorates of Factories of respective States / UTs in the
manufacturing sector.

The Factories Act, 1948 and State Factories Rules

The Factories Act, 1948 is very comprehensive legislation dealing with the
matters of safety, health and welfare of workers in factories. The Act places
duties on the occupier to ensure safety, health and welfare of workers at work.
Some of the salient provisions of the Act include:

 Guarding of machinery
 Hoists and Lifts; Lifting Machines and Appliances
 Revolving Machinery
 Pressure Plant
 Excessive Weight
 Protection of Eyes
 Precautions against dangerous fumes, gases etc.
 Explosive or inflammable dust, gas etc.
 Precautions in case of fire
 Safety of buildings and machinery
 Permissible limits of exposure of chemical and toxic substances
  Entrepreneur may contact State Pollution Control Board where ever it is
applicable.

17. BACKWARD AND FORWARD INTEGRATIONS

Chemical companies often become integrated and undergo other activities

outside the chemical industry. Increased competition prompts many companies to
reduce supply chain costs by looking outside the chemical sector at suppliers and
customers. While most companies within the chemicals sector primarily produce
chemicals, some companies also conduct other manufacturing activities. The
exact proportion of chemicals sector companies that are integrated with other
sector activities is unknown, but many companies actively seek vertical
integration. Many manufacturers pursue vertical integration to secure suppliers
and customers for their products.

Mergers and acquisitions are a common way for companies to undertake new
chemical ventures. By purchasing their chemical suppliers, some manufacturers
secure future chemical feedstock for their products or other chemicals that they
use in manufacturing. The company making the purchase obtains valuable
expertise and equipment. Some mining and petrochemical production is more
cost-effective when integrated within a chemical company.

Energy and feedstock costs are often a significant expense for chemical
companies. Integrating chemical production with activities that secure supplies of
chemical feedstock and energy is relatively common as chemical companies
grow. Chemical companies are located near mines, oil fields, ammonia factories
and water supplies. This reduces transportation costs and increases the reliability
of supplies by reducing the distance between feedstock and the factory.
Some companies, such as Sino-Coking Coal and Coke Chemical Industries
Incorporated, own their mines. BHP Billiton operates a broad range of mines and
is primarily a mining company. It does, however, also produce petrochemical
feedstock for the chemical industry and therefore operates within the chemical
industry as well. These companies technically operate within both the chemical
and mining industries in their normal business operations.

Integrating a chemical company with other activities provides several direct

benefits for the company and is becoming increasingly common. High energy
costs necessitate greater control of energy resources and minimal reliance on
expensive transportation. Chemical companies experience volatile profitability
due to fluctuations in feedstock and energy expenses. Some companies control
this volatility through careful supply chain management and by charging supply
surcharges. Actively researching and developing alternative feedstock and
energy supplies helps the company reduce costs.

Vertical integration supports these activities by eliminating redundant activities

at multiple companies and increasing efficiency. By consolidating activity among
multiple, similar operations, chemical companies achieve cost savings that
contribute to higher profitability. End products are often very profitable, and some
chemical companies purchase their former customers to take advantage of the
marked-up prices of products further along in the supply chain.

Integration may become more common for many chemical companies as

competition strengthens and traditional feedstock becomes more expensive.
Market demand for chemical feedstock increases as emerging market economies
grow and result in increased consumer spending around the world.
 17. TRAINING CENTERS AND COURSES

There is no such training required to start this business but, basic chemical
bachelor’s degree is plus point for enterpriser. Promoter may train their
employees in such specialized institutions to grow up the business. There are few
specialised Institutes provide degree certification in chemical Technology, few
most famous and authenticate Institutions are as follows:

1. Department of chemical LD college of engineering

No.120, Circular Road, University Area, Navrangpura,
Opposite Gujarat University, Ahmedabad, Gujarat 380015

2. MIT College of chemical Engineering, Pune

Gate.No.140, Raj Baugh Educational Complex,
Pune Solapur Highway,
Loni Kalbhor, Pune – 412201
Maharashtra, India

Udyamimitra portal ( link : www.udyamimitra.in ) can also be accessed for

handholding services viz. application filling / project report preparation, EDP,
financial Training, Skill Development, mentoring etc.

Entrepreneurship program helps to run business successfully is also available

from Institutes like Entrepreneurship Development Institute of India (EDII) and its
affiliates all over India.

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many
machine manufacturers are available in the market. The addresses given for
machinery manufacturers have been taken from reliable sources, to the best of
knowledge and contacts. However, no responsibility is admitted, in case any
inadvertent error or incorrectness is noticed therein. Further the same have been
given by way of information only and do not carry any recommendation.
Source:- Udyami Mitra/Sidbi