Project profile

Disperse dyes

isperse dyes are organic

colours which are

applied from near

colloidal aqueous dispersion to

textile fibers in which the dyes

literally dissolve to produce the

desired colouration. The major

chemical dyes of disperse dyes

are simple azo, anthraquinone and

nitroarylamine. These are the new

fast growing field of dyes important

for synthetic fibres. With the

demand far outstripping the supply

and a good export market there is

adequate scope for a new unit to

come up in this field.

This detailed project profile

is prepared basically to give a

preliminary idea to the

entrepreneur regarding various

aspects of this project in a

nutshell. Data from this report can

be used for carrying out various preliminary

formalities with Government Departments such as

allotment of land, registration with DGTD, registration with

Secretariat of Industrial Approvals or obtaining a letter of intent

once the entrepreneur has made up his mind to go ahead with this project.

D Disperse dyes

account for

almost all the dyeing of

cellulose acetate

and polyethylene tetraphthalate textile fibres.

They are used in the dyeing of

polyester and polyacrylonitrile

fibres.

The various points discussed in this profile include:

1. Market potential in terms of past trends and/or end-use pattern.

2. Estimates of requirements and cost of land, buildings and other civil works.

3. Estimates of requirements of plant and machinery, know-how, other

miscellaneous assets, their costs and availability, etc.

4. Requirements of raw materials-indigenous and imported, their availability and

costs and other inputs such as water, fuel, power, etc.

5. Manpower requirements and employment potential.

6. Estimates of administrative and factory overheads.

7. Estimation of cost of project and means of financing.

8. Estimation of cost of production and profitability analysis.

9. Estimation of pay-back period and break-even point, etc.

The study establishes technical feasibility and economic viability of the

project. Ensuing sections of this project profile discuss various aspects of this project.

Product description, uses and applications

Disperse dyes are essentially low

molecular weight derivatives of azo,

anthraquinone and other compounds.

They melt at above 1500 C and are

crystalline materials which are ground

with dispersing agents to produce

particles of 0.5 - 2U in size and which

produce a stable dispersion in the dye

bath. They are essentially non-ionic in nature and contain aromatic or aliphatic

amino, mono and disubstituted flmino and hydroxy groups in their molecular

structure. They have relatively low solubility in

water under the dyeing conditions but it is at

least 0.1 mg/litre.

Disperse dyes account for almost all the

dyeing of cellulose acetate and polyethylene

tetraphthalate textile fibres. They are used in

the dyeing of polyester and polyacrylonitrile

fibres.

Disperse dyes are organic colours mainly amino anthraquinone derivatives

and basic azo compounds, brought into a finely divided condition by grinding with

suitable dispersing agents. Initially developed

for dyeing acetate, this range of dyes are

also important for the colouring of nylon and

many of the newer synthetic hydrophobic

fibres. The newer fibres have a more

compact molecular structure than the

secondary acetate. Disperse dyes may be

considered as forms solid solutions in

the hydrophobic fiber, they have little

affinity towards water, and eventually migrate toward, and diffuse into the organic

fiber.

The fastness properties of this range of

dyes will vary depending upon the fiber to which

they are applied. Wetfastness properties will

generally be better when they are applied to the

newer hydrophobic fibres, e.g. polyesters or

triacetate, than when they are dyed on

secondary acetate or nylon.

Many blue and violet dyes of the

anthraquinone type are subject to gas fading.

The shades turn pink when exposed to nitrogen oxides normally present in the

atmosphere. This tendency to turn pink is most noticeable when the dyes are applied

on secondary acetate, and to a lesser extent on triacetate. The shade change may

be minimised by treatment of the fabric with a protective agent such as

diethanoloamine or melamine derivatives.

A number of dyes are also sensitive to sublimation, which must be used when

dyeing fibres such as triacetate or polyesters.

In addition to the use of disperse dyes in textiles, they are also used in other

sectors of industries for making the articles and products attractive.

They are used in the surface colouration of plastics, and also in paper, and

chemical industries particularly chemicals in treating metals for providing attractive

colours. These dyes are used where the uniform colouration of the fiber is of value in

masking.

The suitability of disperse dyes in discharge/resist printing on polyester are

given below:

Suitability of Disperse Dyes in Discharge/Resist Printing on Polyester

C.I. Disperse Zn (HSO2CH2O)2 Sncl2 CuAc WD CD WD CD WD CD

1. Yellow 1 + - - -

2. Yellow 3 + - - +

3. Yellow 7 + - + - - +

4. Yellow 23 + - - + - -

5. Yellow 42 + - + - - +

6. Yellow 56 + - + - - +

7. Yellow 64 - - - + - +

8. Yellow 83 - - - +

9. Yellow 124 - - - +

10. Yellow 229 + - + - - +

11. Orange 13 + - + - - +

12. Orange 25 + - + - - +

13. Orange 30 + - + - - +

14. Orange 44 + - + - - +

15. Orange 61 + - + - - +

16. Red 4 - - - + + -

17. Red 11 - - - + + -

18. Red 50 + - + - - +

19. Red 54 + - + - - +

20. Red 60 - - - + + -

21. Red 73 + - + - - +

22. Red 91 & 92 - - - + + -

23. Red 106 + - + - - +

24. Red 118 + - + - - +

25. Red 159 - - - + + -

26. Red167 + - + - - 0

27. Violet 8 - - - + + -

28. Violet 26 - - - + + -

29. Violet 33 + - + - - +

30. Violet 100 + - + - - +

31. Blue 26 - - - + + -

32. Blue 35 - - - + + -

33. Blue 56 - - - + + -

34. Blue 81 - - - + +

35. Blue 83 - - + + - -

36. Blue 79 + - + - - -

37. Blue 87 - - - + - -

38. Blue 94 + - + - - +

39. Blue 109 - - - - - -

40. Blue 183 + - + - - +

41. Blue GEL + - + - - -

42. Black BL - - - - - -

+ = Suitable, - = Not Suitable

WD = White discharge

CD = Colour discharge

Market Survey

There are 14 units in the organised sector engaged in the manufacture of

disperse dyes with a total installed capacity of 2076 tones per annum. The installed

capacity and production are given below.

(Quantity in MT, Value in Rs. Lakhs)

Year Units Installed Cap. Production Vallie

1990 10 1823 947 1503.

1991 12 2323 1123 1854

1992 12 2323 1192 2007

1993 12 2323 1603 2898'

1994 13 2323 1487 28381

1995 14 2323 2076 4559'

1996 14 2076 2100 4605

1996-97 1977*

*Excluding production of Ultramarine Blue.

The various units that are producing disperse dyes are given below:

1. M/s Arnar Dye-chern Ltd., Rang Udyan, Mahirn, Mumbai - 400016.

2. M/s Arlabs Ltd., 6 India House, W.H. Marg, Fort, Mumbai - 400001.

3. M/s Atic Industries Ltd., Atul - 396 020. Dist. Valsad.

4. M/s Atul Products Ltd., Atul - 396020, Valsad.

5. M/s Chemiequip Ltd., 501 Embassy Centre, Nariman Point, Mumbai -

400021.

6. M/s Colour Chern Ltd., Dinshaw Vachha Road, 194, Churchgate

Reclamation, Mumbai - 400020.

7. M/s Nirup Synchrome Ltd., 802 Paigah Plaza, Basheer Bagh, Hyderabad -

500029.

8. M/s RathiDyechemPvt. Ltd., 14 Nariman Bhavan, 227, Nariman Point,

Mumbai - 400021.

9. M/s Sandoz (India) Ltd., Sandoz House, Dr. A.B. Road, Worli, Mumbai -

400018.

10. M/s Universal Dyestuff Industries Ltd., P.O. Sakarda - 391350.

11. M/s Ajay Dye-chern Industries, 11 Abhishek, 303-307 Samuel Street, Mumbai

- 400003.

12. M/s Dipika Colour Industries Pvt. Ltd., 3072, Surat Textile Market, Ring Road,

Surat.

13. M/s Colden Dyes Corporation (India) Pvt. Ltd., 626 Dadar Parsi Colony,

Mumbai - 400005.

14. M/s Karasmaneck Chemicals Pvt. Ltd., 626 Dadar Parsi Colony, Mumbai -

400014.

15. M/s Laxsons Dyes & Chemicals Pvt. Ltd., 86/12 Tirupati Lane, Kanchan

Nivas, Poona - 411004.

16. M/s R.N. Kanth Dyestuffs & Auxiliaries Pvt. Ltd., Shed No. 2, Pimplewadi,

Girgaon, Mumbai - 400004.

17. M/s Raptokes Brett & Co. Ltd., 47 Dr. Annie Besant Road, Worli, Mumbai -

400025.

18. M/s Serene Dyestuff Industries Ltd., 5145 Tardeo Market Buildin Tardeo Main

Road, Mumbai- 400034.

19. M/s Western Chemical Company, 626 Dadar Parsi Colony, Mumbai - 400014.

The two units that have been registered with DGTD in the recent past are:

1. M/s Bindal Textile Mills Ltd., Bindal House, Old Post Office, Kalbadevi Road,

Mumbai- 400002.

2. M/s JBF Industries Ltd., Unit No. IV, Bindal House, Kalbadevi Road, Mumbai -

400002.

1. Azo-Disperse Deys 208MT Benzanthrone Intermediates/Vat dyes & Disperse dyes

2. Anthraquinone Disperse Dyes 156 MT.

1. Anthraquinone & 600 MT

Exports

There has been a marked increase in the exports of disperse dyes in the last

decade. The exports have increased from 37 tonnes valued at Rs. 18 lakhs in 1990-

91 to 520 tones valued at Rs. 580 lakhs in 1997-98. The increase in exports is mainly

due to the stringent laws enacted in developed countries. India exports mainly to

Bangladesh, Belgium, Republic of China, Indonesia, Kenya, Hong Kong, Sri Lanka,

Italy, Netherlands, Thailand, etc. The exports of disperse dyes are given in the

following table:

Year Quantity (MT) Value (Rs. Lakhs) 1990-91 37 18.40

1991-92 24.00

1992-93 32 11.87

1993-94 44 23.21

1994-95 21 18.46

1995-96 - 50.00

1996-97 74 63.78

1997-98 528 580.54

The climate of Indian exports is improving and demands are picking up with

the western countries facing difficulties in production activities of dyestuff due to

health hazards, environmental pollution and other economic' reasons Viz. shift

towards high technology production, with higher price realisation.

Imports

India imports mainly from China, Federal Republic of Germany, Republic of

Korea, Netherlands, U.K., U.S.A., Japan, Switzerland and Spain. The imports of

disperse dyes are given in the following table.

Year Quantity (MT) Value (Rs. Lakhs) 1991-92 128.75 135.02

1992-93 77.92 91.15

1993-94 88.00 89.90

1994-95 204.45 159.28

1995-96 232.45 223.54

1996-97 109.41 162.91

1997-98 127.13 226.89

Domestic Demand Projections (Fire Scenario)

Cotton still enjoys a very prominent place as the major fiber being used by the

Textile Industry. However, its consumption has remained almost static over the last

decade. The trend is for increased consumption of synthetics and blends. A

consumption pattern of 75% cotton and 25% synthetic is assumed to be achieved by

the end of the VII Plan period. On the current reckoning, it seems that inspite of the

trend towards synthetics, cotton will retain its dominance for year to come. The

following cloth pattern is projected for 2005-2006, 2010-2011 and 2015-2016.

Cloth pattern up to 1999-2000

Fiber 2005-2006 2010-2011 2015-2016

M. meters

% break up

M. meters

% break up

M. meters

% break up

Cotton 10570 70.0 11895 65.0 13200 60.0

Blended/Mixed 2040 13.5 3110 17.0 4400 20.0

Synthetics 2490 16.5 3295 18.0 4400 20.0

Among the synthetics, the growth rate will be highest for polyester followed by

nylon and acrylic.

Demand for Dyestuffs

In projecting the demands, due consideration has been given to the expected

growth in population, the likely growth in the per-capita income, the likely growth of

the consuming industries, the expected Pattern of consumption of different fibers,

and the likely fashion trends.

The progressive orientation towards synthetics and particularly polyester

based textiles has resulted in a phenomenal rise in the consumption of disperse

dyes, and although cotton dyes as a whole dominate the Indian sense, it is the single

class of dyes which holds the highest growth potential in the domestic market. The

demand for various disperse dyes in the coming years is given below.

Demand

Year Yellow/

Oranges

Reds Violets Blues Browns Blacks Total

1999-00 661 777 484 2027 565 861 5375

2000-01 727 855 532 2230 622 947 5913

2001-02 800 940 586 2453 684 1042 6505

2002-03 880 1034 644 2698 752 1146 7154

2003-04 968 1138 709 2968 827 1260 7870

2004-05 1065 1251 780 3265 910 1387 8658

2005-06 1565 1840 1145 4800 1340 2040 12730

The compound growth rate per year of disperse dyes has been taken as 10%

for the period 1999-00 to 2004-05 and 8% for 1994-95 to 2005-2006.

It can be seen that there is a large gap between the existing installed capacity

and the projected demand, hence there is a good potential for new units to come up

in this area.

Manufacturing Process

Each colour of disperse dyes requires different raw materials. Because the

range of colours is very large each colour has its own manufacturing process. The

difference in the processes is primarily in the reaction period.

The general steps involved in the production are:

(a) Diazotisation

(b) Coupler preparation

(c) Coupling

(d) Filteration

(e) Dispersion

(f) Drying

The detailed manufacturing process of celliton scarlet B is given below and

the economics is based on the production of the above said dye.

Some of the important disperse dyes, method of preparation are given at the

end of the article.

A typical azo disperse dye, celli ton sca6rlet B is made by diazotising p-

nitroaniline and coupling with 2-N-(ethyl-anilino) ethanol. Diazotization is the process

of reacting a primary aromatic amine with nitrous acid in the presence of excess

mineral acid to produce a diazo (-N=N-) compound.

For the manufacture of this dye, 152 kg of p-nitroaniline is added to a mixture

of 1500 litres of water and 560 litres of hydrochloric acid (110Be). The contents are

stirred and 1300 kg of ice added. The diagotization is carried out by adding 330 litres

of sodium nitrite (23% solution).

In the meantime 198 kg of 2-N-ethylanilino ethanol is added to 275 litres of

hydrochloric acid (110Be) and stirred for 90 minutes, when the dissolution is

complete. The solution is diluted with 3000 litres of water and 1000 kg of ice added to

bring down the temperature to woe.

The diazo solution is run into the above solution in 2 hours at 10150e. The

contents are stirred for 15 minutes and 2000 litres of water, 200 kg sodium

bicarbonate and 200 kg ice are added in 3 hours. The stirring is continued overnight.

The contents are diluted and filtered.

The actual dye is formed as relatively large particles during the last stage of

its manufacture and in this form it is unsuitable for dyeing. Stabilisation of the

dyebath involves incorporation of large amounts of suitable dispersing agents,

followed by grinding. In one method the dye in the form of the filter cake is mixed with

a concentrated solution of the dispersing agent in water, partially dried or a drum

dryer and converted into a sticky mass. This mass is then fed to rollers situated close

to each other, but rotating at different speeds. The shearing action exerted on the

dye by the rotation of the roller reduces the particle size of the dye. This is followed

by further drying and grinding. In another method, the dye paste is milled in the

presence of a large excess of a dispersing agent and then drying in a spray dryer, in

which the paste is sprayed into a steam of hot air, when the water present is rapidly

evaporated.

Cellulose sulphite waste liquor (lignin sulphonates), condensation products of

naphthalene-beta-sulphonate and formaldehyde, and product obtained by

condensing cresol with formaldehyde in the presence of sodium sulphite and further

condensing with beta-naphthol-6-sulphonic acid are some of the dispersing agents

recommended.

Azo and anthraquinonoid disperse dyes amount to about 85% of all

commercial disperse dyes. Azo disperse dyes are made by diazotising aromatic

amines and coupling with suitable components.

Dyes for synthetic fibres are provided in the form of dispersed powders

(except the cationic types). Dyeing is accomplished by the use of a water dispersion

of the dye together with wetting agent, at about 60-800C. The dyeing operation is

generally through the formation of solid solution involving the dye and the fiber.

Except for pure green anthraquinone dyes for synthetic fibres have quite a broad

spectrum extending from pink through orange, red, violet and blue. Some of the

important disperse dyes and their preparations are shown below:

Anthraquinone Dyes for Synthetic Fibres

Colour Index Name

Commercial Name

Colour on Fiber

Method of Preparation

CI disperse

Red 9

SRA Red VI X Bright bluish

red

Treat 1-anthranquinone

sulfonic acid with

methylamine under pressure

CI disperse

Orange 11

SRA Orange

II

Bright orange nitrate 2-methylanthra-

quinone and reduce

CI disperse

Red 15

SRA Fast

Red VII

Bluish pink nitrate 1-hydroxyanthra-

quinone and reduce with

Na2S

CI disperse

Blue 22

SRA Fast

Blue III

Bright reddish

Blue

react leuco quinizarin with

methylamine and oxidise

CI disperse

Red 4

Disperse

Fast Pink RF

Bright Pink treat purpurin with ammonia

to give 1-amino-2, 4-

dihydroxyanthraquinone and

treat with dimethyl sulfate

CI disperse

Violet 1

Disperse Fast

Red Violet RN

Bright Violet treat quinizarin with

Na2S2O, and NH under

pressure and oxidise with

nitrobenzene

CI disperse

Violet 4

Disperse Fast

Violet 6B

Bright violet oxidise leuco 1, 4-cliamino

anthraquinone with C12 and

treat with CHpH until the

monomethyl derivatives is

formed

CI disperse

Blue 14

Acetate

Blue B

Bright Blue reduce quinizarin to leuco

quinizarin, react with

methylamine and oxidise

CI disperse

Blue 3

Disperse Fast

Blue FFR

Bright Blue condense a mixture of

quinizarin and leuco quini-

zarin with methylamine and

ethanolamine and oxidise.

CI disperse

Blue 34

Blue treat quinizarip and leuco

quinizarin with diethylenegly-

colamine and methyla Ip.ine

under pressure

CI disperse

Blue 23

Acetoquinone

Blue BF

Bright Blue condense quinizarin or leuco

quinizarin with ethanolamine

CI disperse

Red 11

Disperse Fast

Pink FF3B

Bright Bluish

Pink

treat 1-amino-4-bromo 2-

anthraquinone sulfonic acid

with toluenesulfonamide,

followed by Hydrolysis and

methylation

CI disperse

Blue 7

Disperse Fast

Green B

Bright

Greenish

Blue

treat leuco 1, 4; 5, 8-tetra-

hydroxyanthraquinone with

ethanolamine and oxidise

with nitrobenzene

Various intermediates used in the manufacture of disperse dyes are given below:

1. P-Amino acetanilide

2. 1-Amino-4-bromo-2-anthraquinone-sulphonic acid

3. P-Amino phenol

4. 4-Amino xanthopurpurin

5. Aniline

6. Anilino methane sulphonic acid

7. I-Benzamido-4-chloro-anthraquinone

8. 3-Bromo benzanthrone

9. I-Bromo-4-methyl amino anthraquinone

10. I-Chloro-2, 4-dinitrobenZene

11. 2-Chloro-4-nitroaniline

12. 4-Chloro-3-nitrobenzene sulfonyl chloride

13. 2, 2-(m-chlorophenylamino)-diethanol

14. Cresidune

15. o-Cresol

16. p-Cresol

17. 1,4-Diamino anthraquinone

18. 1,5-Diamino anthraquinone

19. 2, 6-Dichloro-4-nitroanioline

20. 1:5-Dihydroxy-4, 8-dinitro anthraquinone

21. N, N-Dimethyl aniline

22. 1, 5-Dinitro anthraquinone

23. 1, 8-Dinitro anthraquinone

24. Diphenylamine

25. Ethanolamine

26. 2-(N-Ethykamino) ethanol

27. I-Hydroxy anthraquinone

28. I-Hydroxy-4-nitro anthraqumone

29. Leuco-1, 4, 5, 8-tetrahydroxy anthraqumone

30. Methylamine

31. 1-Methoxy anthraquinone

32. 3-Methyl-1-phenyl-5-pyrazolone

33. 1-Naphthylamine

34. p-Nitroaniline

35. Phenol

36. p-Phenyl azoaniline

37. Quinizarin

38. p-Toluene sulfoanamide

39. 2, 2-(M-tolyamino) diethanol

Economics of the project Plant capacity and efficiency

The economics of the project is carried out on the basis of a plant capacity of

60 MT per annum of disperse dyes. The unit will operate on one shift basis on a 300

days working schedule in a year. The average plant efficiency is assumed at 85%.

Cost of land and site development

1. Land 700 square metres @ Rs. 150.00 per square metre including

registration charges 1.05

2. Site clearing expenses, 700 square metre land @ Rs. 3/- per square metre

0.02

3. Site levelling expenses, 700 square metre land @ Rs. 4.50 per square metre

0.03

4. Internal roads and external approach road 53m long x 3m wide @ Rs. 450/-

per metre 0.24

Rs. 1.34 lakhs

Cost of Building and Structures

A. Factory Building 1. Factory shed of brickwall construction with PCC flooring with structural steel

supports area 350 sq.m @ Rs. 1800/- per sq.m.

6.30 Sub Total A Rs. 6.30 Lakhs

B. Non-factory Building 1. Administrative and store building of brickwall construction with PCC roofing

and flooring area 50 sq.m. @ Rs. 2000/- per sq.m.

2. Flushing cisterns, wash basins, sewers, septic tank, storm water drains, etc.

3. Boundary wall 9" thick x 6" high x 110" long @ Rs. 300/- per metre

4. Factory gate, watchman's cabin, parking site, etc.

5. Architect's fee

Sub total B Rs. 2.00 lakhs

Total (sub-total A + sub-total B) Rs. 8.30 lakhs

Plant and Machinery (Rs. Lakhs)

S.No. Description No. Reqd. Estimated Cost

A. Imported (CIF)

B. Indigenous

1. Reaction tanks FRP lines fitted with

agitation gear boxes with all

accessories and fittings cap. 2500 lt.

7 2.10

2. Reaction tanks-FRP lines fitted with

agitation gear boxes with all

accessories & fittings cap. 10000 lt.

2 1.50

3. Hydrochioric acid storage tank

rubber lined cap 7500 litres

1 0.75

4. Hydrochioric acid measuring tank

FRP lined capacity 1000 lt.

1 0.25

5. Plate and frame type filter press 24"

x 24" with 24 plates

2 0.75

6. Spray dryer (200 kg/ day cap.) 1 0.50

7. Ice plant complete with all

accessories & fittings etc. cap. 5 tpd

1 3.40

8. Mini pulveriser 50 kg/hr cap. 1 0.20

9. Miscellaneous equipments, etc. 0.50

Sub-total B Rs. 9.95 lakhs

Total (Sub-total

A + Sub-total B)

Rs. 9.95 lakhs

Taxes, duties, packing, forwarding,

freight, insurance, erection and

contingencies

Rs. 1.05 lakhs

Total Rs. 11.00

lakhs

Other Miscellaneous Fixed Assets

A. Electrical and Workshop Equipment 1. Electrical Transformer

2. Switchgear, Cables, Cable Trays, Power Distribution Equipment, etc. 1.00

3. Workshop Equipment including Maintenance and Erection tools and tackles

Sub-total A Rs. 1.00 lakhs

B. Office Furniture and Fixture

1. Executive Tables and Chairs

2. Tables and Chairs for Clerks/Typists 0.20

3. Steel Almirahs, Filing Cabinets, Cash boxes, etc.

Sub total B Rs. 0.20 lakhs

C. Vehicles

1. Scooter for Officers 0.20

Sub total C Rs. 0.20 lakhs

D. Other Assets 1. Weight Bridge at Gate, 5 Tons capacity

2. Platform type Weighing Machines (0-300 kg. cap.) 0.40

3. Air Coolers, fans, etc.

4. Typewriters, Telephones, Wall Clocks, etc.

Sub total D Rs. 0.40 lakhs

Total (B+C+D) Rs. 1.80 lakhs

Preliminary and pre-operative expenses

A. Preliminary Expenses

1. Drafting charges payable to Chartered

Accountant for drafting the Memorandum

and Articles of Assn. 0.10

2. Printing charges for Memorandum and

Articles of Assn. 0.10

3. Registration Fee payable to the Registrar of

Companies for registration considering the

Authorised Capita! of the company Rs. 11

lakhs 0.08

4. Fees paid to consultants for project

identification and evaluation, preparation of

project profiles, conducting market survey

and preparing Project Feasibility Studies 0.03

Rs. 0.31 lakhs

B. Pre-operative Expenses 1. Salaries, Wages and Staff Welfare

Expenses 0.20

2. Printing, Stationery and Postage 0.10

3. Rent, Rates and Taxes 0.12

4. Travelling and Conveyance Expenses 0.12

5. Auditor's Remuneration 0.08

6. Insurance Premium 0.04

7. Interest and Commitment Charges 1.44

8. Bank Charges and Commission 0.02

9. Recruitment of Personnels 0.03

10. Legal and Professional Fees 0.03

11. Other Miscellaneous Expenses 0.33

Working Capital & Margin Money Requirements Rs. 2.51 lakhs

Working Capital & Margin Money Requirements (Rs. lakhs)

Description No. of Margin (Plant Efficiency = 85%)

Working Margin Bank

Months Money Capital Money Finance

%

1. Raw Materials in Store

(A) Imported 0.00 20.00 0.00 0.00 0.00

(B) Indigenous 0.50 20.00 2.82 0.56 2.25

2. Packing Materials 0.50 20.00 0.04 0.01 0.03

3. Work in Progress 0.50 30.00 3.00 0.90 2.10

4. Finished Good in Store 0.50 30.00 3.12 0.94 2.18

5. Accounts Receivable 1.00 20.00 7.44 1.49 5.95

6. Other Recurg. Expenses 1.00 100.00 0.61 0.61 0.00

7. Electricity Deposit 100.00 0.25 0.25 0.00

Total 17.26 4.75 12.51

Capital Cost of the Project

The capital cost of the project is estimated as follows:

1. Land, buildings and other civil works Rs. 9.64 lakhs

2. Plant, equipment and machinery Rs. 11.00 lakhs

3. Other Miscellaneous fixed assets Rs. 1.80 lakhs

4. Preliminary expenses Rs. 0.31 lakhs

5. Pre-operative expenses Rs. 2.51 lakhs

6. Margin money for working capital Rs. 4.75 lakhs

7. Contingencies Rs. 1.49 lakhs

Rs. 31.50 lakhs

Financing of the project

It is proposed to finance the project as follows:

1. Long term loans from financial institutions Rs. 21.00 lakhs

2. Cash subsidy Rs. 2.53 lakhs

3. Equity capital

4. (i) from promoters, their friends, associate

and relatives Rs. 7.97 lakhs

5. (ii) from public Rs. 0.00 lakhs

Rs. 31.50 lakhs

Annual Requirements & Cost of Raw Materials and Consumables

S. No. Description Unit Qty. Rate Annual Cost

A. Imported

B. Indegenous

1. P-nitroaniline MT 31 100000/- 31.00

2. Hydrochloric acid MT 100 2000/- 2.00

(30%)

3. Sodium Nitrite MT 16 14500/- 2.32

4. 2-N-(ethylaniliono) MT 35 118000/- 41.30

ethanol

5. Sodium Bicarbonate MT 41 7000/- 2.88

Rs. 79.50 lakhs

Annual Cost of Packing Materials The annual cost of packing materials is estimated @ Rs. 1.00 lakhs per

annum.

Annual Cost of Utilities

Water 5000 KL @ Rs. 2/- per KL Rs. 0.10 lakhs

Coal 0.00

Fuel oil 0.00

Electricity 1.00 Lakh KWH@ Rs. Rs. 1.00 lakhs

1.00 per KWH

Rs. 1.10 lakhs

Annual Wage Bill of Labour & Staff Designation Nos. Monthly Annual Wages Salary (Rs.) (Rs. Lakhs) A. Factory Supervision 1. Production Manager 1 3000 0.36

2. Purchase/ Store Officer 1 2000 0.24

3. Supervisor/Chemist 1 2000 0.24

B. Administrative & Sales 1. Managing Director 1 3500 0.42

2. Sales Man 1 1400 0.17

3. Accountant 1 1500 0.18

4. Typist-cum-clerk 1 1200 0.14

5. Peon 1 600 0.07

C. Labour & Watch & Ward 1. Skilled Workers 2 1100 0.26

2. Semi-skilled Workers 3 1000 0.36

3. Unskilled Workers 4 1000 0.48

4. Watchmen 2 600 0.14

Rs. 3.07 lakhs

Other Benefits 0.43

Rs. 3.50 lakhs

Administrative Overheads

1. Rent, Rates & Taxes 0.24

2. Travelling & Conveyance 0.24

3. Postage, Telegram, Telephone 0.15

4. Printing & Stationery 0.13

5. Vehicle Expenses 0.10

6. Advertisement & Publicity 0.15

7. Legal & Professional Expenses 0.08

8. Directors Sitting Fees & Expenses 0.06

9. Bank Charges, Guarantee, Commissions,

etc. 0.11

10. Auditors Fees & Expenses 0.03

11. Other Miscellaneous Expenses 0.19

Rs. 1.48 lakhs

Annual Cost of Maintenance & Repairs

1. Cost of maintenance of buildings &

structures @ 1% on Rs. 8.30 lakhs 0.08

2. Cost of maintenance of plant & machinery

@ 22% on Rs. 11.00 lakhs 0.22

3. Cost of maintenance of other miscellaneous

fixed assets @ 2% on Rs. 1.80 lakhs 0.04

Insurance The building and structures, plant and machinery and other miscellaneous

fixed assets of the plant will be insured against all types of risks. The annual

insurance premium payable is estimated at 0.6% on Rs. 21.10 lakhs which works out

to Rs. 1266 lakhs.

Annual Sales Expenses The sales expenses generally cover commission, brokerage, discount, etc.

The annual sales expenses at 100% capacity utilisation are estimated at 1% of the

annual sales revenue of Rs. 105 lakhs which works out to Rs. 1.05 lakhs.

Annual Cost of Production (at 85% capacity) 1. Raw Materials 67.58

2. Utilities 0.94

3. Packing Materials 0.85

4. Annual Wage Bill of Labour & Staff 3.50

5. Administrative Overheads 1.48

6. Maintenance & Repairs 0.34

7. Insurance 0.13

8. Sales Expenses 0.89

9. Interest on short term loans @ 19% on

Rs. 12.51 lakhs 2.25

10. Interest on Long Term Loans @ 14%

on average amount of loan of Rs.

10.50 lakhs 1.47

11. Amortisation of Preliminary & Pre-

operative Expenses of Rs. 2.82 lakhs

@ 10% 0.28

12. Depreciation of Plant & Machinery @

9.5% on Rs. 11.00 lakhs 1.045

13. Depreciation on building @ 3% on Rs.

8.30 lakhs 0.25

14. Depreciation on Other Miscellaneous

Fixed Assets @ 5% on Rs. 1.80 lakhs 0.09

Rs. 81.08 lakhs

Revenue through sales 51 MT per

annum of

Disperse Dyes @ Rs. 175000 Rs. 89.25 lakhs

Per MT

Profitability 1. Net Annual Profit Before Taxes Rs.8.17 lakhs

2. Net Annual Returns on Equity

Capital before taxes 102.41%

Break-even Point Break-even Efficiency Fixed Cost of Sales

= Sales Revenues - Variable

Cost of Sales

= 8.58

105.00 -

85.30

= 43.52

Pay-back Period Pay-back Period (Approx.) = 2.37 Years

List of Foreign Collaborations 1. M/s The Atul Products Ltd., P.O. Atul, Valsad-Gujarat. ACNA Chemical

Organica S.P.A. Italy.

2. M/s Raspro Chemical Industries P. Ltd., Mahalaxmi Chambers, 22 Bhulabhai

Desai Road, Bombay.

3. M/s Nirup Synchrome Ltd., 802 Pargah Plaza, Basheer Bagh, Hyderabad.

4. ACNA Chemical Organic a S.P.A., Montedon Group, Italy.

List of Manufacturers and Dealers of Plant and Machinery

1. M/s Apurva Water Treatment Plant Mfg. Co., 304/305 Yogeshwar, 135/139

Kazi Sayed Street, Mumbai - 400003.

2. M/s Ashish Engineering Works, C-1 Sonal Industrial Estate, behind John

Baker Co., Saki Vihar Road, Mumbai - 400072.

3. M/s Baltex Engineering Pvt. Ltd., Jolly Maker Chambers No. 2, 13th floor, 131

& 133 Nariman Point, Mumbai - 400021.

4. M/s Abhay Kumar & Co., Gopal Nivas, 127 S. Gandhi Marg, Mumbai -

400002.

5. M/s Doshi Ion Exchange & Chemical Industries, 7, Prem Jeevan, Kazi Sayed

Street, Mumbai - 400 003.

6. M/s Gujarat Machinery Manufacturers Ltd., Churchgate House, 32-34 Veer

Nariman Road, Opposite Akbarally's, Mumbai - 400 023.

7. M/s Heliplastics Ltd., Jeroo Building, 1st Floor, 137 M.G. Road, Mumbai -

400023.

8. M/s Hovert Boilers and Chemical Equipments, Plot No. 3704/E, Phase IV,

Behind New Nirma Chemicals, G.L.D.C., Vatva, Ahmedabad.

9. M/s Karsandas Bechardas & Sons, Jaldarshan Building, Ashram Road,

Ahmedabad - 380 009.

10. M/s New Multifab Engineers Pvt. Ltd., 224/225, Gla Complex, 2nd Floor, D.

Upadhyay Marg, Mulund (W), Mumbai - 400 080.

11. M/s Soft-Dion Water, 75 Laxmi Building, 4th Floor, Sir P.M. Road, Fort,

Mumbai - 400 001.

12. M/s Standard Fabricators (India) Pvt. Ltd., Jeevan Sahakar, P.M. Road,

Mumbai - 400 001.

13. M/s Taxma Engineers, B-3 Giriray Industrial Estate, Mahakali Caves Road,

Andheri, Mumbai - 400 093.

14. M/s Valcano Heat Products, C/o Vishant Sales Corporation, 184 Samuel

Street, Mandvi Chamber, Mumbai - 400 009.

Dr. Himadri Panda

&

Dr. (Mrs.) Rakshinda Panda

Devashish Consultants (P) Ltd.

61, West End City,

Bidholia, Rampur Road,

P.O. Clutterbuckganj - 243502

Bareilly (UP)