ACNielsen ORG-MARG

Situation Analysis for SME

Sector

Submitted to TERI

By

West Godavari /East

Godavari Cluster

ACNielsen ORG-MARG

SUMMARY OF FINDINGS

West Godavari

• There are approximately 20 units in this cluster who are engaged in manufacture of

various types of firebricks.

➢ ANNUAL TURNOVER

Annual Turnover (In Lakhs)

8 8 8

3

6

7

4

1 11 1 1

2

3

2

0

2

4

6

8

10

2005-06 2006-07 2007-08

Upto 5 Lakh 5 to 8 Lakh 8 to 10 Lakh 10 to 12 Lakh Above 12 lakh

➢ PRODUCTION

Annual Production (In Tonnes Per Annum)

3

6

4

2

3

1

0

1

2

3

4

5

6

7

8

Upto 300 Tonnes 300 to 500 Tonnes 500 to 1000 Tonnes 1000 to 2000

Tonnes

2000 to 3000

Tonnes

Above 3000 Tonnes

2007- 08 Production

ACNielsen ORG-MARG

➢ ENERGY REQUIREMENTS

• CUMULATIVE FUEL USAGE

Qty consumer per annum

Number of Units using the fuel

Electricity 1702670 20

Coal / Hard Coke 21840 Tons 20

Firewood / Husk 1560 Tons 7

• USAGE OF ELECTRICITY (IN UNITS CONSUMED PER ANNUM)

Usage of Electricity (In Units consumed per annum)

20%

5%

25%

45%

5%

Upto 50000 Units

50000 to 75000 Units

75000 to 100000 Units

100000 to 125000 Units

Above 125000 Units

ACNielsen ORG-MARG

• USAGE OF COAL / HARD COKE (IN TONNES PER ANNUM)

Usage of Hard Coke / Coal (In Tonnes / Annum)

10%25%

40%

15%

10%

Upto 500 Tonnes

500 to 1000 Tonnes

1000 to 1500 Tonnes

1500 to 2000 Tonnes

Above 2000 Tonnes

• USAGE OF LIGNITE FIREWOOD / HUSK (IN TONNES PER ANNUM)

Usage of Lignite Firewood / Husk (In Tonnes per annum)

14%

72%

14%

Upto 125 Tonnes

125 to 250 Tonnes

Above 250 Tonnes

ACNielsen ORG-MARG

➢ RAW MATERIAL REQUIREMENT

• CUMULATIVE RAW MATERIAL USAGE

Qty consumed per annum Number of Units using the raw material

Clay 25968 Tonnes 20

China Clay (Garg) 11196 Tonnes 21

• USAGE OF CLAY (IN TONNES PER ANNUM)

Usage of Clay (In Tonnes per annum)

10%

10%

65%

10%

5%

Upto 600 Tonnes

600 to 1200 Tonne

1200 to 1800 Tonnes

1800 to 2400 Tonnes

Above 2400 Tonnes

• USAGE OF CHINA CLAY (IN TONNES PER ANNUM)

ACNielsen ORG-MARG

East Godavari

• There are approximately 25 kiln units in this cluster who are engaged in manufacture of

various types of firebricks / other refractory materials.

➢ ANNUAL TURNOVER

Annual Turnover (In Lakhs)

9

1211

4 4

6

1 1 11 1 1

43

2

0

5

10

15

2005-06 2006-07 2007-08

Upto 10 Lakh 10 to 15 Lakh 15 to 20 Lakh 20 to 25 Lakh

25 to 30 Lakh Above 30 Lakh

➢ PRODUCTION

Annual Production (In Tonnes Per Annum)

1

4

9

4 4

1

0

2

4

6

8

10

Upto 300 Tonnes 300 to 500 Tonnes 500 to 1000 Tonnes 1000 to 2000

Tonnes

2000 to 3000

Tonnes

Above 3000 Tonnes

2007- 08 Production

ACNielsen ORG-MARG

➢ ENERGY REQUIREMENTS

• CUMULATIVE FUEL USAGE

Qty consumer per annum Number of Units using the fuel

Electricity 2057170 Units 25

Coal / Hard Coke 33084 Tonnes 25

Firewood / Husk 6480 Tonnes 13

• USAGE OF ELECTRICITY (IN UNITS CONSUMED PER ANNUM)

Usage of Electricity (In Units consumed per annum)

4%

8%

24% 48%

16%

Upto 50000 Units

50000 to 75000 Units

75000 to 100000 Units

100000 to 125000 Units

Above 125000 Units

ACNielsen ORG-MARG

• USAGE OF COAL / HARD COKE (IN TONNES PER ANNUM)

Usage of Hard Coke / Coal (In Tonnes / Annum)

4%

16%

48%

24%

8%

0%

Upto 500 Tonnes

500 to 1000 Tonnes

1000 to 1500 Tonnes

1500 to 2000 Tonnes

2000 to 3000 Tonnes

Above 3000 Tonnes

• USAGE OF FIREWOOD / HUSK (IN TONNES PER ANNUM)

Usage of Firewood / Husk (In Tonnes per annum)

23%

38%

31%

8%

Upto 250 Tonnes

250 to 500Tonnes

500 to 1000 Tonnes

Above 1000 Tonnes

ACNielsen ORG-MARG

➢ RAW MATERIAL REQUIREMENT

• CUMULATIVE RAW MATERIAL USAGE

Qty consumed per annum Number of Units using the raw material

Clay 43680 Tonnes 25

China Clay / Calcined Bauxite 19080 Tonnes 24

• USAGE OF CLAY (IN TONNES PER ANNUM)

• USAGE OF CHINA CLAY – Calcined Bauxite (IN TONNES PER ANNUM)

ACNielsen ORG-MARG

Field Observations

✓ The units in West Godavari are spread across Chebrolu, Bhimdole, Dwarka

Tirumala, Timmaya Palem Road and run in general shift for 8 –10 hours.

✓ The units in East Godavari are located in Rajhamundry and spread across

Morampudi and Dowel swarm within an radius of 5 kms from Rajamundry.

✓ All the units in this cluster are having grid connection - commercial and power

availability is not a problem except some small power cuts of 30 – 40 mins daily.

✓ All the units are semi mechanized in nature and use there own technology; there is

no sourcing of technology.

✓ The units are manufacturing various grades of firebrick from Fire clay, which is

widely used as refractory insulating bricks for maintaining consistent temperature.

✓ Used in lining furnaces, kilns, fireboxes and fireplaces. These are built primarily to

withstand high heat and also find applications in extreme mechanical, chemical, or

thermal stresses.

✓ The major equipments are Draught Kiln, which is normally called locally as DD

Kiln, besides this a Grator, Muller Mixer, hammer press and motors of 7.5 & 12.5

hp are being used. In each unit in case of West Godavari wherein the plants are

operating at 30-50 tpm capacity are having 2/3 DD kilns whereas in East Godavari

wherein the plants are operating at 400 to 500 tpm are having 7/8 DD kiln.

✓ The major equipment being the DD Klin is fabricated locally.

✓ The energy cost in the total cost of production is ranging between 30 % to 35%,

which comprises of Electricity, Hard Coke Fire wood where as the raw material

cost which consists of clay as well as bauxite ore.

✓ The units are not running throughout the year because of marketing / order

problems

✓ The major manufacturing process is as under

▪ The most important aspect is the mixing ratio as well as content of

aluminum oxide and iron oxide in bauxite ore.

ACNielsen ORG-MARG

✓ Both the locations are manufacturing firebrick of varied alumina content, besides this the units using China Clay / Bauxite ore are also manufacturing Pickle Jars and other articles.

Clay / China Clay - Bauxite Ore

Mixer + Grater - crushing make powder, add water make an paste

Hand molding / Hammer press

Draught Kiln - temp 1260 to 1300

Cooling & firebrick is ready.

ACNielsen ORG-MARG

Draught Kiln

Draught Kiln

ACNielsen ORG-MARG

Draught Kiln

Exit point

ACNielsen ORG-MARG

Fire clay brick frame

Fire clay brick frame

ACNielsen ORG-MARG

Fire clay brick frame

Mixer/Crusher

ACNielsen ORG-MARG

Hammer press

Pressing machine

ACNielsen ORG-MARG

Ball clay pickle jar frame

Finish products

ACNielsen ORG-MARG

SERVICE PROVIDERS

Equipment Supplier Contact Nos Remarks

M/s Amic Industries (P) Ltd 86-D, Dr. Suresh Sarkar Road, Calcutta-700014

A.R. Engg. Refractory Rajamundhry East Godavari

08883- 2467357 Fabricator for Kiln

Gerranjali Engg. Refractory 8, Morampudi, East Godavari

08883 -2533103

Heat Flow Engineering Polasanpalli Elure West Godavari

08829- 222273

Raw Material

Shri Laxmi Clay Mines Dwarka Tirumala West Godavari M. SATYANARAYAN

09393262301

Vijay Laxmi Minerals Dwarka Tirumala West Godavari Bishveshara Rao

08829- 271213

Shri Satya Sai Clay Mines Dwarka Tirumala West Godavari A.M.Venkateshwara Rao

08829 - 271545

Godavari Clay Mines East Godavari

09392064444

Association

B.Shyama Prasad President West Godavari

09390410011

Er. M.Satayanarayan President West Godavari

09390400054

Ceramic Association G.A.Raju President East Godavari

09848253664

George Babu Vice President East Godavari

09247605859

ACNielsen ORG-MARG

BANKERS

✓ The major banks in the area wherein the units are sourcing finance are ▪ State Bank of India, RAJAMUNDHRY ▪ Andhra Bank , RAJAMUNDHRY ▪ State Bank of India, Tirumala ▪ ANDHRA bank, Tirumala

✓ Out of total 45 units operating in this cluster 25% of the units are not having any bankers , rest are having the bankers for CC limits as well as loan purpose for Kiln.