Detailed Project Report (DPR) on wire & cable manufacturing unit (500 coils per day)

Detailed Project Report (DPR) on wire & cable manufacturing unit (500 coils per day)

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%


  • INTRODUCTION
  • TYPES OF ELECTRICAL WIRES
  • THERE ARE TWO MAIN TYPES OF WIRES: SOLID OR STRANDED.
  • COPPER WIRE
  • PROPERTIES
  • PROPERTIES OF COPPER WIRE:
  • ELECTRICAL CABLE
  • PVC COPPER CABLE
  • PROPERTY
  • APPLICATION
  • ADVANTAGES
  • ADVANTAGES OF PVC CABLES
  • SOME OF THE MAJOR ADVANTAGES OF PVC CABLES
  • CONSTRUCTION
  • CONDUCTOR
  • 1. SOLID/STRANDED
  • A. SOLID
  • B. STRANDING
  • 2. CIRCULAR/ SHAPED
  • A. CIRCULAR
  • B. SHAPED
  • INSULATION
  • THE FOLLOWING COLOUR CODE IS USED FOR IDENTIFICATION:
  • LAYING UP
  • INNERSHEATH
  • A. EXTRUDED INNERSHEATH
  • B. TAPPED INNERSHEATH
  • ARMOURING
  • OUTERSHEATH
  • USES AND APPLICATION
  • B.I.S. SPECIFICATION
  • SEQUENCES IN PVC CABLE MANUFACTURE
  • PVC CABLES MANUFACTURING: QUALITY CONTROL & STANDARDS
  • PROCESS FLOW CHART
  • MANUFACTURING PROCESS
  • (1) DRAWING
  • (2) ANNEALING
  • (3) STRANDING
  • (4) INSULATION
  • (5) QUALITY CONTROL
  • CABLES ARE MANUFACTURED AND UNDERGO THE FOLLOWING TESTS:
  • (A) TYPE TEST
  • 1. THE FOLLOWING TESTS ARE TYPE TEST OF ELECTRICAL POWER CABLE.
  • PHYSICAL TESTS FOR INSULATION AND SHEATH
  • (B) ACCEPTANCE TEST:
  • (C) ROUTINE TEST:
  • CONDUCTOR RESISTANCE TEST OF ELECTRICAL POWER CABLES
  • TEST FOR THICKNESS OF INSULATION OF POWER CABLE
  • APPARATUS REQUIRED TESTING FOR THICKNESS OF INSULATION OF POWER CABLE
  • PROCEDURE FOR TESTING OF THICKNESS OF INSULATION OF POWER CABLE
  • ANNEALING TEST FOR WIRES AND CONDUCTORS
  • PROCESS OF ANNEALING TEST FOR WIRES AND CONDUCTORS
  • TENSILE TEST OF CONDUCTORS
  • APPARATUS REQUIRED FOR TENSILE TEST:
  • METHOD OF TENSILE TEST OF CONDUCTORS
  • PROCEDURE
  • PERSULPHATE TEST OF CONDUCTOR
  • WHY COPPER WIRES ARE TINNED?
  • METHODS
  • METHOD A:
  • METHOD B:
  • TEST SPECIMEN FOR TINNING TEST (FOR METHOD B)
  • WRAPPING TEST FOR CONDUCTORS
  • (6) COILING AND PACKING
  • MARKET OVERVIEW OF WIRE AND CABLE INDUSTRY
  • INCREASING DEMAND FOR RENEWABLE POWER GENERATION IS A VITAL TREND
  • GROWING DEMAND FROM DATA CENTERS AND IT FACILITIES IS  A CURRENT TREND
  • DEMAND FOR CABLES IN RAILWAYS
  • 5G INFRASTRUCTURE WILL CREATE THE DEMAND FOR CABLES
  • INDUSTRY CHALLENGES
  • FUTURE OF WIRE AND CABLE INDUSTRY IN INDIA
  • BUILDING BLOCKS OF INDUSTRY 4.0
  • BIG DATA AND ANALYTICS:
  • AUTOMATED ROBOTS:
  • HORIZONTAL AND VERTICAL SYSTEM INTEGRATION:
  • THE INDUSTRIAL INTERNET OF THINGS:
  • CYBER SECURITY:
  • ADDITIVE MANUFACTURING:
  • SIMULATION:
  • THE CLOUD:
  • AUGMENTED REALITY:
  • GLOBAL MARKET SCENARIO OF WIRE AND CABLE
  • SINGLE CORE CABLES CU/XLPE/PVC
  • PERMIT AND LICENSES FOR PVC CABLE MANUFACTURING
  • GET AN INCORPORATION CERTIFICATE
  • KEY POINTS TO PONDER
  • FACTORY LICENSE
  • TRADE LICENSE
  • NOC FROM SPCB
  • BIS CERTIFICATION
  • MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
  • PLANT LOCATION FACTORS
  • PRIMARY FACTORS
  • 1. RAW-MATERIAL SUPPLY:
  • 2. MARKETS:
  • 3. POWER AND FUEL SUPPLY:
  • 4. WATER SUPPLY:
  • 5. CLIMATE:
  • SPECIFIC FACTORS
  • 6. TRANSPORTATION:
  • A. AVAILABILITY OF VARIOUS SERVICES AND PROJECTED RATES
  • 7. WASTE DISPOSAL:
  • 8. LABOR:
  • 9. REGULATORY LAWS:
  • 10. TAXES:
  • 11. SITE CHARACTERISTICS:
  • 12. COMMUNITY FACTORS:
  • 13. VULNERABILITY TO WARTIME ATTACK:
  • 14. FLOOD AND FIRE CONTROL:
  • EXPLANATION OF TERMS USED IN THE PROJECT REPORT
  • 1. DEPRECIATION:
  • 2. FIXED ASSETS:
  • 3. WORKING CAPITAL:
  • 4. BREAK-EVEN POINT:
  • 5. OTHER FIXED EXPENSES:
  • 6. MARGIN MONEY:
  • 7. TOTAL LOAD:
  • 8. LAND AREA/MAN POWER RATIO:
  • PROJECT IMPLEMENTATION SCHEDULES
  • INTRODUCTION
  • PROJECT HANDLING
  • PROJECT SCHEDULING
  • PROJECT CONSTRUCTION SCHEDULE
  • TIME SCHEDULE
  • SUPPLIERS OF PVC COPPER WIRE
  • SUPPLIERS OF RAW MATERIALS
  • SUPPLIERS OF COOPER WIRE ROD
  • SUPPLIERS OF PVC COMPOUND CABLE GRADE
  • SUPPLIERS OF PACKAGING MATERIALS
  • SUPPLIERS OF PLANT AND MACHINERY
  • SUPPLIERS OF WIRE DRAWING MACHINE
  • SUPPLIERS OF PVC EXTRUSION PLANT
  • SUPPLIERS OF ANNEALING FURNACE
  • SUPPLIERS OF WIRE STRANDING MACHINE
  • SUPPLIERS OF WIRE STRANDING MACHINE
  • SUPPLIERS OF ELECTRICAL MEASURING INSTRUMENTS
  • SUPPLIERS OF EOT CRANES
  • SUPPLIERS OF DG SETS
  • SUPPLIERS OF POWER TRANSFORMERS
  • SUPPLIERS OF COOLING TOWER
  • SUPPLIERS OF ETP PLANTS
  • SUPPLIERS OF AIR POLLUTION CONTROL EQUIPMENTS
  • SUPPLIERS OF AIR CONDITIONING EQUIPMENTS
  • SUPPLIERS OF AIR COMPRESSORS
  • SUPPLIERS OF WEIGHING MACHINE (PLATFORM TYPE)
  • SUPPLIERS OF MATERIAL HANDLING EQUIPMENTS
  • SUPPLIERS OF FIRE FIGHTING EQUIPMENTS

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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