WIRE & CABLE MANUFACTURING UNIT
[CODE NO.4423]
A cable includes multiple wires which are twisted, bonded, or braided together to form an assembly. The cables & wires are encapsulated with insulating materials, generally, polyethylene or PVC, to ensure protection to users & the surrounding environment. PVC cables act as a primary component for transmitting and distributing electric power. They are prominently used in distribution systems, substations, house wiring, distribution systems, street lighting. PVC insulated cables & wires are prominently used for power distribution. PVC cables manufacturing process is quite straightforward. Anybody intending to venture into this business can get started with a smaller investment.
The electric cable & wire market in India has witnessed massive growth in the past few years and have managed to thrive @ 16% CAGR in the period 2015-2019.
The insulated cable & wire market in India is expected to grow @ 10.3% CAGR through 2023, mainly on account of ever-increasing government investment towards infrastructure development projects.
Rapid urbanization across the nation under smart cities mission paired with the escalating number of electronic items per household & development of manufacturing facilities under the initiative, viz ‘Make in India’, which is stimulating demand for power, are projected to scale up market demand in near future. Furthermore, escalating demand for reliable & efficient data communication from rural regions & tier II & III cities and towns would influence the nation’s insulated cable market.
The cables & wires cable market in our country comprises almost 40% of the electrical industry & is thriving @ 15% CAGR as a result of the development of the power & infrastructure sectors. The Indian cable & wires market is highly fragmented, mainly dominated by small and medium enterprises.
The production of high voltage durable & specialty cables is mainly catered by the organized sector. Meanwhile, the unorganized sector deals with the production of low-voltage cables.
The ever-increasing demand for cable and wires can also be credited to the advent of cutting-edge technologies by manufacturers in India & prompt expansion of automated and low-cost manufacturing technologies, which have considerably improve the production of cables and wires.
The worldwide cable market size was projected at 186.09 billion dollars in 2017 and is expected to experience a CAGR of 6.4% over the projected period. Ever-rising reserves in growing renewable energy production, smart grid technology, & government initiatives for advancing the distribution & transmission system are projected to steer this market.
Increasing utilization of smart grid technology has met the growing demand for grid interconnections, resulting in increased investments in underground cables & new submarines. Additionally, the market growth is credited to the increasing high voltage direct current links & offshore wind farms.
The demand for cables & wires largely depends on the expansion and diversification of the industrial regime & infrastructure development in the power generation, telecommunication, & commercial sectors.
Rising global population and swift urbanization have escalated the demand in these regions, thereby underpinning plenty of opportunities to the global cable & wire market.
Wire is used to carry the current from one place to another A wire is a single conductor (material most commonly being copper or aluminium) while cable is two or more insulated wires wrapped in one jacket. Multiple conductors that have no insulation around would be classified as a single conductor.
COST ESTIMATION
Plant Capacity 500 Coils/Day
Land & Building (800 sq.mt.) Rs. 58.00 Lac
Plant & Machinery Rs. 86.50 Lac
Working Capital for 1 Month Rs. 1.81 Cr
Total Capital Investment Rs. 3.43 Cr
Rate of Return 59%
Break Even Point 43%
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)
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