Introduction

 

Introduction

Aluminium fabricated items like doors, windows, staircase hand rails and supports, railings for verandas, corridors etc. have become the generally accepted feature in most modern buildings. The use of aluminium in business and office complexes, buildings, theatres as well as decorative purposes is very common. Similarly in residential buildings also aluminium doors, windows, railings, grill-works etc. are used extensively. Textile shops and other trading shops built in lighter materials too are going in for shelves made of aluminium for stocking purposes.

The advantages of aluminium such as light weight, strength, corrosion resistance, durability, easy in fabrication, attractive appearance and easy maintenance make it a popular material for use in modern buildings. Aluminium required for use in buildings is available from large scale manufacturers such as Indal, Balco, Jindal etc. as extruded sections in various shapes and sizes for specific uses. These sections are also available through their local dealers. The usual length of these sections is 12 feet/4 meters. Fabricators anodise these to desired colours and fabricate the items as per the customers' requirements. These items have good appearance and finish and the maintenance expenses are almost nil while steel and wooden items require regular painting and polishing periodically.

Market Potential

The development and construction activities being inter-linked, there is good scope for aluminium fabrication units for meeting the growing demand of new buildings for offices, business and shopping complexes, theatres etc. Aluminium fabricated and anodised items like doors, windows, railings, staircases, shelves, ladders etc. are being increasingly used in the modern constructions on consideration of durability and appearance. If the present trend is any guide, theatres, restaurants, hotels, shopping complexes, office premises and other luxurious buildings will fast replace wooden materials with aluminium fabricated items. The consumption of these items is already on the increase.

Basis and Presumptions

• The production of the unit is worked out on the basis of single shift of 8 hours a day for 300 working days a year. The unit is expected to work at 70% efficiency in the first year.
• The unit is expected to achieve 80% production capacity in the second year onwards.
• Wages for labour etc. have been taken as per the rate prevailing at the time of preparation of the project profile.
• Interest rate is calculated @ 12% on Capital Investment.
• Entrepreneur has to raise 25% of the capital investment as margin money.
• Considering the product and usage, the project can last for more than 10 years. The repayment of term loans will be made in 5 years after one year moratorium.
• The unit is proposed to function in own building.
• Cost of machinery and equipment has been taken as per the rates quoted by machinery manufacturers/suppliers.