Manufacturing of PVC coated cables

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    MANUFACTURING OF

    T ! "T P#C $ %PE CA&E'

    #.$o. C%$&'$ Pae

    $o.

    1. INTRODUCTION 3

    2. MARKET POTENTIAL 9

    3. QUALITY STANDARDS 21

    4. BASIS & ASSUMPTIONS 50

    5. PRODUCTION & TECHNICAL 54

      ASPECTS

    6. PROJECT ACILITIES !!

    !. CAPITAL COST

      & OPERATIN" E#P. SUMMARY 90

    $. CASH LO% & INANCIAL ANALYSIS 93

    9. L'( )* +,-) C)+/(()' 95

    1. S//' )* P,(' & M,' 9!

    11 () 15 H) () '( / , E(/' 9$

      & )( 7,( ,/(

    Last Pae o t*e e,ort -------------- 17

    MAR/ETING O''ICE 0 1 RESIDENC2 ROAD& OPP ASHO/A RESTAURANT& SADAR& NAGPUR * 334 445R-./ : HIRA NAGAR& A/OLA ROAD& /HAMGAON * 333 646 ( M.S.# PH 0 4157 * 7898587& Cell 0 :;5 * ;

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    1. $&%/0C&%$

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    2. MG8HT #LPE +( ) ,' 11KG 500 KG /() 2000 ++2

    3. PGC8#LPE C)() C,' 110G 1.1 KG +( ) /() 6 ++2

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    %' & C,' , B:

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    5 "utomotive wire

    .  6ower Cables

    5 Control cables

    5 Communication cables

    5 Industrial and transportation cables

    5 6lenum cables

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    2.3.1 Market Trends :

    7ed8hot economic growth) coupled with government reforms

    designed to increase the availabilit of a9ordable electricit)

    is presenting enormous opportunities for wire and cable

    manufacturers in India! 3ith a gross domestic product 'G:6*

    growth rate of ;!?011@) India is

    the second8fastest growing ma+or

    econom in the worldA! Electricit is a #e driver of this

    growth) with demand for electrical energ now growing at

    @!,. annuallB! To sustain the countr&s economic growth) its

    capacit for electricit generation needs to double to011)111 mega8watts '%3* b 01,0B!

    2.3.2 Two Indias

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    :elivering electricit where and when it is needed poses a

    massive challenge for those in India&s public and private

    sector power industr! 3hile the availabilit of electricit has

    increased dramaticall since its independence in ,;

    billion people) annual per capita consumption of electricit

    'at about -1 #3h* is among the lowest in the world!

    2.3.3 Power Players

     Two levels of government) state and central) are responsible

    for ensuring that all citiFens of India have access to reliable

    and a9ordable electricit! Currentl) the state governments

    account for -0. of electrical power generation and the

    central government Ddistribution functions are managed b state utilities! "n

    important shift is the increasing role of the private sector!

    Currentl the private sector accounts for ,

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    2.3.4 Better cables mean better reliability

    6ower losses in India continue to hover far above global

    standards! The vast ma+orit of this power loss comes from

    inecient power grids! India transmission and distribution

    losses are an average of 0,.! Some states li#e ammu and

    ashmir and Orissa have transmission and distribution losses

    of more than

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    " #e global trend in the wire and cable industr) also

    reected in India) is the demand for robust cable designs)

    along with e9orts to use combinations of power and

    communication cables in the same sstem 'duct ban#s) for

    eMample* and attempts to Jmonitor& sstem performance

    continuousl! There is also increased use of cable diagnostic

    techni/ues to manage aging cable replacement programs!

    2.4 -tandards

    3ire and cable standards within India can be broadl

    compared to International Electro8technical Commission

    'IEC* standards!

    able s)eci/cations: India

    Categor Indian Speci=cation No

    ContentPsub+ect

      with ear

    I! 6lastics

    IS4 -D,8,;< 6QC Insulation

    Sheath

    IS4 >;

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

      up to ,!, Q

    IS4 ,--< 8 '6art I* ,; 6QC Insulated

    'Heav

    dut* cables up to

    ,!, Q

    IS4 ,--< 8'6art II* ,; 6QC Insulated

    'Heav

    dut* cables up

    to

    from D!D Q8,,Q

    IS4 @1;8 6art I8,; L6E insulated

    with

    6QC sheathed cable

    up to ,!, Q

    IS4 @1;8 6art II8,;- L6E insulated

    with

    6QC sheathed

    cables

    from D!D Q8DD

    Q

    IS4 @1;8 6art III8,;;D L6E insulated

    with

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

     Thermoplastic

    sheathed cables

    from

    >> Q8001 Q

    II! Elastomer

    IS4 >D18,;< Elastomeric

    insulation

    and sheath

    IS4 ;;>86art I ,; Elastomeric

    insulatedcables up to ,!, Q

    IS4 ;;>86art II 0110 Elastomeric

    insulated

    cables from D!D Q8DD Q

    2.4.1 able a))lication standards :

    IS4 ,

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    2.5 Innovative 3ire $ Cable Solutions for India 

    2.5.1 0or Power able

    6ower cable mar#ets include45 2nderground power cables

    5 Overhead power cables

    5 2rban and rural electric utilities) for power transmission

    and

    distribution

    5 Industrial power cables

     The power cable compounds should conform to the

    following parameters4

    5 Increased longevit with tree retardant cross lin#able

    polethlene 'T78 L6E* insulation

    5 Improved ease of installation and better sstem protection

    due to eMcellent +ac#eting materials

    5 Enhanced transmission ecienc using super smooth)

    eMtra8clean semi8conductive shields) cross8lin#able

    polethlene 'L6E* insulation

    5 Greater protection because of eMcellent environmentalstress crac# resistance 'ESC7*) eMibilit) toughness andeMcellent moisture barrier properties for +ac#eting

    2.5.2 0or Telecomm*nications :

     The materials for telecommunication application must meet

    stringent /ualit and performance standards! This portfolio

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    provides consistent products that help maMimise value and

    attain lower sstem costs for the following mar#ets4

    5 Copper cable for telephone and L"N applications

    5 Ribre optic and ocean cable

    5 CoaMial cable for television and wireless telephone

    5 SignalPsecurit wires Some of the bene=ts delivered b

    telecommunications cable materials from :ow 3ire $ Cable

    include4

    5 Highl stabilised foamPs#in twisted pair insulation sstem5 High8speed insulation materials with eMcellent surface

    smoothness

    5 Low8shrin#) high8speed insulation materials for Categor -

    and >

    local area networ# 'L"N* applications

    5 3ell8established performance of low8loss phsical foaming

    compounds for coaMial cable applications

    5 :ie drool8resistant +ac#et materials with eMcellent balance

    of phsical and electrical properties and robust performance

    5 Low shrin# =bre optic cable 'ROC* +ac#eting materials with

    eMcellent balance of phsical and electrical properties and

    robust performance

    5 (road range of coated metals providing eMcellent

    environmental and phsical protection

    MAR/ETING O''ICE 0 1 RESIDENC2 ROAD& OPP ASHO/A RESTAURANT& SADAR& NAGPUR * 334 445R-./ : HIRA NAGAR& A/OLA ROAD& /HAMGAON * 333 646 ( M.S.# PH 0 4157 * 7898587& Cell 0 :;5 * ;

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    =. Qualit@ #tandards ontinues=

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      5. TEST OR THICKNESS O INSULATION

    AND SHEATH

    6 PHYSICAL TESTS OR INSULATION AND

    SHEATH

    !. TEST OR BLEEDIN" AND BLOOMIN" O

      PI"MENTS

    $ INSULATION RESISTANCE TEST

    9 HI"H GOLTA"E TEST%ATER IMMERSION

      10 LEMIBILITY TEST

    11 THERMAL STABILITY TEST

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    ."." i* oltae FLP' Cables :

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    7e*site : htt+:88999"ca+ca*indialtd"co8

    %" #aler -lectronics 5iited  'ndia 

    Address: Sa%i$!e--y Palaya%& C+i%a-+re& Ta%il"ad 935431 I"dia

    7e*site : htt+:88999"salerelectonics"net8

    $" Hiachal 7ire 'ndustries (+) 5td"  'ndia 

    G. T. R+ad Da%-al Dis--. /a")ra I"dia

    7e*site : htt+:88999"hiachal9ire"co"in8

    ;" .esca* 'ndustries 5td"  'ndia 

    Address: 34& Ra,as-!a"& Udy+) Na)ar& G. T /ar"al R+ad& Del!i I"dia

    7e*site : htt+:88999"gesca*"co"in8

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    Address: 7/''

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    =. ContOd 11. o; &o set u, an 'nter,rise

    11. 5OW -O - %P #" "-&P&)

      11.1. *C))O" -O B #" "-&P&"%&:

      he "ollo)ing t)o im$ortant !onsi#erations hae to e imme#iatel

    a##resse# e"ore starting an enter$rise.

    11.6  C5OO)"$ O%& FO&M OF B%)" O&$#")#-)O" : 

    he siness !ol# e $ro$rietar $artnershi$ or a $riate limite#

      !om$an. " the nmer o" share hol#ers are more an# e!ee#

    eon# a nmer s$e!i"ie# the om$an la) the !om$an

    e!omes a $li! limite# !om$an an# no more remains $riate

    limite#. onslt a !hartere# a!!ontant "or more in"ormation on

    !om$an "ormation.

    11.8 M#9)"$ # P&O*%C- C5O)C

      *a;e a !are"l analsis o" the $ro#!t or seri!e o are !hoosing

    sometimes in short rn there is a shortage o" a $arti!lar !ommo#it in

    the mar;et o ma een !ome to ;no) o )ill get almost t)o )ee;s in

      a#an!e to s$$l "resh sto!;. %oes that mean o !an 4m$ into that

    siness. First thing in s!h a !on#ition is to anale the sitation. @ee$

    in min# that shortages ma o!!r #e to a nmer o" reasons an# a

    goo# entre$rener al)as eamine the $ros an# !ons e"ore setting $ a

      siness. t ma tem$t o to thin; that $erha$s o hae "on# a goo#

    MAR/ETING O''ICE 0 1 RESIDENC2 ROAD& OPP ASHO/A RESTAURANT& SADAR& NAGPUR * 334 445R-./ : HIRA NAGAR& A/OLA ROAD& /HAMGAON * 333 646 ( M.S.# PH 0 4157 * 7898587& Cell 0 :;5 * ;

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

      sinesses i#ea. (t #o not e easil in"len!e# these tem$orar

    shortages. are"ll anale the "tre #eman#-s$$l $osition o" the

    $ro#!t sa "or the net 3 to 5 ears. /nl )hen o are !ertain that the

    shortage )ill remain there "or !onsi#erale $erio# o" time an# o )ol#

      e ale to generate enogh $ro"its in the er "irst or se!on# ear o"

    o$eration an# that o !an $ro#!e alit item )ithin an a!!e$tale

    $ri!ing then onl o shol# entre into s!h a siness.

    here are man organiations )hi!h are in $ossession o" in"ormation

    on 2ine opport2nitieA o !an !onta!t these organiations to get

    an i#ea aot $ro#!ts

    5. As+l-e Te$!"+l+)ies Resear$! Ce"-er * ===.as+l-epr+,e$-rep+r-s."e-

      7. Dis-ri$- I"ds-ries Ce"-ers

    6. Ce"-ers >+r E"-repre"ers!ip DeFel+p%e"-

    3. S%all I"ds-ry SerFi$e I"s-i--es8. I"ds-rial E-e"si+"s Breas (T!ese eis- i" seFeral s-a-es# -!ey are "+="

     y s$! "a%es as i"de& Udy+) Mi-ra& Udy+) Sa!ay a"d s+ +"#.

    9. Na-i+"al I"ds-rial DeFel+p%e"- C+rp+ra-i+"& Ne= Del!i1. /!adi a"d illa)e I"ds-ries C+%%issi+"& Ne= Del!i

    I"dia& A!%edaad54. Na-i+"al I"s-i--e +> E"-repre"ers!ip a"d S%all Bsi"ess DeFel+p%e"-&

     Ne= Del!i

    55. Na-i+"al I"s-i--e +> S%all I"ds-ry E-e"si+" a"d Trai"i")& Hyderaad

    his in"ormation !ol# e in the "orm o":

    ∗ Pro4e!t $ro"iles

    ∗ Feasiilit st#ies

    ∗ n#str st#ies

    ∗  'rea #eelo$ment st#ies.

    11.( O-5& )MPO&-#"- *C))O" -O B M#*:

    ∗ B/'/ /F %C8RD

    ∗ PREP'R'/ /F (C8E88 PB'

      8/CR= PR/E88 R' *'ER'B8 *'

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    FR'8RCCRE - B'% & (CB%= 'ER '% P/ER

    11.; $# #PC- -O COMP

    * PR/8/'B RE=8R'/ /F

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    12"2 #+ecial a6 Concessions

    T!e G+Fer"%e"- +>>ers a =ide ra")e +> $+"$essi+"s -+ i"Fes-+rs i" I"dia -+

     pr+%+-e i"ds-rial )r+=-! a"d ep+r-s. T!e i%p+r-a"- $+"$essi+"s i"$lde 0

    −Ded$-i+" +> preli%i"ary a"d pre+pera-iFe epe"ses i" se--i") p a pr+,e$-.

    − C+%ple-e -a ee%p-i+" >+r pr+>i-s >r+% ep+r-s.

    − 'iFe year -a !+lidays =i-!i" -!e >irs- ei)!- years +> $+%%er$ial +pera-i+"s >+r 

    544 EOUs a"d "i-s i" EPZ.

    − Ded$-i+" +> 64 +> )r+ss -+-al i"$+%e >+r 54 years >+r "e= i"ds-rial

    "der-ai")s es-alis!ed y $+%pa"ies.

    − Ded$-i+" +> $api-al resear$! a"d deFel+p%e"- epe"di-re.

    12"% Relie or oreign Nationals :

      A S!+r- S-ay ee%p-i+" applies =!ere all -!e >+ll+=i") $+"di-i+"s are %e- 0

    − T!e i"diFidal is a >+rei)" "a-i+"al e%pl+yed y a >+rei)" $+%pa"y "+- d+i")

     si"ess i" I"dia

    − His s-ay i" I"dia d+es "+- e$eed ;4 days i" a -a year (e-e"ded -+ 5+r a spe$ial ee%p-i+">r+% -a +" -!eir salary i"$+%e. T!e -a +" -!eir salaries $+ld e paid y -!eir 

    e%pl+yees =i-!+- s$! -a ei") !eld as par- +> salary >+r -a prp+ses. T!is

    spe$ial $+"$essi+" is aFailale >+r >+r years a"d is als+ >lly ded$-ile >+r 

    $+rp+ra-e -a prp+se. 

    − '+rei)" "a-i+"als are ee%p- >r+% -a >+r !+%e leaFe -raFel e"e>i-s >+r 

    -!e%selFes a"d -!eir >a%ilies& pr+Fided y -!e e%pl+yer.

    16.( ) &eg2lation:

    12.4.1 $orei"n direct in'estment a))ro'al )olicy (i"(li"(ts #

    "n industrial underta#ing) i!e!) a compan with interests inindustr can invest upto 0

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    8 "utomatic approval is granted b 7eserve (an# for foreigninvestment upto -,. in D- high priorit industries!8 Investors need to =le an application with the 7eserve (an# ofIndia '7(I* in the prescribed format and approval is ordinarilgranted within ,- das!

    8 Ror foreign investment outside the automatic route) clearancehas to be obtained from Roreign Investment 6romotion (oard'RI6(*!8 "pplications for setting up a ,11. EMport Oriented 2nit arealso re/uired to be =led with the SI"!8 Ror setting up an unit in an EMport 6rocessing one 'E6*)application has to be =led with the :evelopment Commissionerof the concerned E6!8 2nder automatic procedures) foreign technolog agreementsare being permitted in respect of industries that are designatedas high priorit industries!

    8 The use of foreign brand names and P or trade mar# of goodsis also now being permitted freel!8 To provide access to international mar#ets) ma+orit foreigne/uit holding upto -,. e/uit is being permitted forinternational trading companies that are primaril engaged ineMport activities!

    12.4.2 o)eratin" en'ironment and taation )olicies

    R:I can be in the form of cash or capital goods and there is nominimum cash re/uirement) (ranch organisations arepermitted onl in a few speci=ed service industries such asban#ing) shipping) airlines etc!) or eMport8oriented ventures!Certain industries) as mentioned in the industrial polic) re/uirelicense b their nature) while others re/uire such a license onlif located in the proMimit of a large cit! This licensing applies uniforml to domestic and foreigninvestment!"lso certain products are reserved for the small scale sectorand large underta#ings are ordinaril permitted e/uit

    participation up to 0< percent of total shareholding in these! There is no restrictions regarding access to domestic mar#etsor user of foreign brand names!" wor#8permit as such is not re/uired for eMpatriate emploees)but permission to sta is re/uired from the Government wherethe period of sta is more than three months!7(I permission is also re/uired to emplo eMpatriates whereremittance of salar in foreign eMchange is envisaged!

    MAR/ETING O''ICE 0 1 RESIDENC2 ROAD& OPP ASHO/A RESTAURANT& SADAR& NAGPUR * 334 445R-./ : HIRA NAGAR& A/OLA ROAD& /HAMGAON * 333 646 ( M.S.# PH 0 4157 * 7898587& Cell 0 :;5 * ;

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    ,0.4.3 0I # PP6! MET7!&8 

     The highlight of the polic is the promoted prducts categor'6riorit Sector in R:I*where approval for up to -,. e/uit

    investment proposals is automatic and where onl anapplication to the 7eserve (an# of India is re/uired! Thisprocedure is also applicable to investment proposals involvingtrading companies and hotels and the tourism related industr!

    Investment proposals involving greater than -,. e/uit orinvolving products not in the promoted categor re/uireapproval from the %inistr of Industr through the speciallempowered Roreign Investment 6romotion (oard which cannegotiate terms directl on ma+or proposals in their totalit andfree from an predetermined parameters

    "nd there are special facilities and incentives for eMportoriented units and investment in units located in an of theeMport promotion Fones!Ror further information regarding automatic approvals) write toCONT7OLLE7ECH"NGE CONT7OL :E6"7T%ENT7ESE7QE ("N OR IN:I"NE3 CENT7"L ORRICE (2IL:INGSH"HEE: (H"G"T SINGH 7O":(O%("

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    EPTITI, 0 I6IE,-

    India permits free repatriation of pro=ts after pament of theapplicable taMes for all approved investments other than in fewspeci=ed industries!

    In these consumer goods industries) repatriation of pro=ts isallowed onl out of net foreign eMchange earnings during aninitial period of seven ears from the commencement of production!

    However) there are procedural re/uirements for obtaining 7(Iapproval for repatriation of (ranch pro=ts or dividend b anIndian compan which has more than

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    SMB PROJECTS ABSOLUTE TECHNOLOGIES

    correspond with the (oard!

    12.4.6 NRI Investment Approval:

    8 Non87esident Indians 'N7Is* allowed to invest upto ,11.

    e/uit with full bene=ts of repatriation in most industr sectors!8 There is no restriction on the eMtent of e/uit that can be heldb a Non87esident Indian 'N7I* as an individualPpartner in a SSIunit!8 N7Is and Overseas Corporate (odies 'OC(* predominantlowned b N7Is are allowed to invest upto ,11. foreign e/uit inhigh priorit industries with full repatriation bene=ts!8 To set up large industrial ventures in products reserved for thesmall scale sector) the unit has to ta#e up a @-. eMportobligation!

     

    =. ContOd 6atories At

    1. &' 6AC&%'# AC&

    13.1 b;ecti'es

    8 To ensure ade/uate safet measures and to promote the health

    and welfare of the wor#ers emploed in factories!

    8 To prevent haphaFard growth of factories through the provisions

    related to the approval of plans before the creation of a factor!

    13.2 -co)e and co'era"e

    8 7egulates wor#ing condition in factories!

    8 (asic minimum re/uirements for ensuring safet) health and

    welfare of

    wor#ers!

    8 "pplicable to all wor#ers!

    8 "pplicable to all factories using power and emploing ,1 or more

    wor#ers) and if not using power) emploing 01 or more wor#ers on

    an da of the preceding ,0 months!

    MAR/ETING O''ICE 0 1 RESIDENC2 ROAD& OPP ASHO/A RESTAURANT& SADAR& NAGPUR * 334 445R-./ : HIRA NAGAR& A/OLA ROAD& /HAMGAON * 333 646 ( M.S.# PH 0 4157 * 7898587& Cell 0 :;5 * ;

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    13.3 Main )ro'isions

    8 Compulsor approval) licencing and registration of factories!

    8 Health measures!

    8 Safet measures!

    8 3elfare measures!

    8 3or#ing hours!

    8 Emploment of women and oung persons!

    8 "nnual leave provision!

    8 "ccident and occupational diseases!

    8 :angerous operations!

    8 6enalties!

    8 Obligations and rights of emploees! when to consult and refer

    8 On starting a factor!8 Throughout the life of the factor!

    V! Cont&d VIndustrial Establishment "ct

    14. &' $/0#&AL '#&AL#M'$& AC&

    14.1 b;ecti'es

    8 To regulate the conditions of recruitment) discharge)disciplinar action)

    holidas) etc! of wor#ers emploed in industrial underta#ingsand

    establishments!

    14.2 -co)e and co'era"e

    8 "pplicable to industrial establishments wherein -1 or more

    wor#men are or have been emploed in the preceding ,0

    months!

    8 Central and state governments can ma#e this "ct applicable to

    establishments emploing less than -1 persons) as in the case

    of 26 and 3est (engal!

    8 In "ssam it is applicable to concerns emploing , or more

    MAR/ETING O''ICE 0 1 RESIDENC2 ROAD& OPP ASHO/A RESTAURANT& SADAR& NAGPUR * 334 445R-./ : HIRA NAGAR& A/OLA ROAD& /HAMGAON * 333 646 ( M.S.# PH 0 4157 * 7898587& Cell 0 :;5 * ;

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    >,() )* +++ ,< ,: 7'< +++ ,'(< +/);'.