Detailed Project Report on Mineral Turpentine Oil (M.T.O) From Petroleum (Superior Kerosene Oil Or Other Material) (Capacity: 2 MT/Day)

MINERAL TURPENTINE OIL (M.T.O) FROM PETROLEUM (SUPERIOR KEROSENE OIL OR OTHER MATERIAL)

[EIRI/EDPR/1608] J.C. 409

INTRODUCTION

Mineral turpentine, also known as turpentine substitute, turps substitute, or just turps is an inexpensive petroleum-based replacement for the vegetable-based turpentine. It is commonly used as a paint thinner for thinning oil-based paint and cleaning brushes, and as an organic solvent in other applications.

Mineral Turpentine Oil is versatile items derived from petroleum product and is used as a solvent in paints coating and in screen printing and as solvent or diluent,

The demand of paints coating etc. is increasing rapidly due to industrial development. Among the ingredient used for its manufacture is superior kerosene oil (S.K.O.) which is not drying type. However M.T.O. which is produces using S.K.O. as raw material is of easily drying type therefore used in screen printing under sunlight.

However the demand of Mineral Turpentine Oil is increasing day by day and hence there is a good scope for new entrant.

COST ESTIMATION

Plant Capacity            2 MT/Day

Land & Building (700 sq.mt.)    Rs. 96.00 Lac

Plant & Machinery                    Rs. 11.65 Lac

Working Capital for 2 Months    Rs. 50.51 Lac

Total Capital Investment          Rs. 1.62 Cr

Rate of Return                          18%

Break Even Point                      61%

CONTENTS

INTRODUCTION

USES AND APPLICATION

B.I.S. SPECIFICATION

GRADES OF MINERAL TURPENTINE OIL

SPECIFICATION OF SUPERIOR KEROSENE OIL

PROPERTIES & CHARACTERSTICES TURPENTINE OIL

TURPENTINE OIL

HAZARD   FLAMMABLE, MODERATE FIRE RISK:-

PROPERTIES & CHARACTERSTICES OF RAW MATERIALS USED

GUM TURPENTINE

COBALT NAPHTHENATE

TOLUENE 

GRADE:-

HAZARD:-

KEROSENE OIL

HAZARD

HEXANE

MARKET SURVEY

TRENDS IN THE INDUSTRY

PERFORMANCE OF PETROLEUM & NATURAL GAS SECTOR DURING 2012-13

CRUDE OIL AND NATURAL GAS PRODUCTION

FIGURE-1: CRUDE OIL AND NATURAL GAS PRODUCTION

REFINING CAPACITY & PRODUCTION

FIGURE-2: REFINING CAPACITY & PRODUCTION

PRODUCTION AND CONSUMPTION OF PETROLEUM PRODUCTS

FIGURE-3: PRODUCTION AND CONSUMPTION (INDIGENOUS SALES) OF PETROLEUM PRODUCTS

IMPORTS AND PRICES OF CRUDE OIL:

FIGURE-4: IMPORTS OF CRUDE OIL AND AVERAGE CRUDE OIL PRICES

IMPORTS & EXPORTS OF PETROLEUM PRODUCTS:

FIGURE-5: IMPORTS & EXPORTS OF PETROLEUM PRODUCTS

FIGURE-6: INDIA'S POL IMPORTS AS A PROPORTION TO OVERALL IMPORT

PETROLEUM SUBSIDY ON SKO (PDS) AND LPG (DOMESTIC)

FIGURE-7: SUBSIDIES ON SKO (PDS)

PRODUCTION OF PAINT & VARNISH

MANUFACTURERS/SUPPLIERS OF M.T.O

FORMULATIONS

MINERAL TURPENTINE OIL (M.T.O) (FORMULA COMPOSITION FOR MAKING M.T.O) M.T.O. FROM SUPERIOR KEROSENE OIL (S.K.O)

FORMULATION NO. 1

FORMULATION NO. 2

FORMULATION NO. 3

FORMULATION NO. 4

FORMULATION NO. 5

FORMULATION NO. 6

FORMULATION NO. 7

MANUFACTURING PROCESS

RAW MATERIALS CALCULATIONS

AS PER FORMULATION NO. 1

PROCESS FLOW DIAGRAM

PLANT LAYOUT

PRINCIPLES OF PLANT LAYOUT

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:

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. TERM LOANS:

8. TOTAL LOAD:

9. LAND AREA/MAN POWER RATIO:

SUPPLIERS OF RAW MATERIALS 

SUPERIOR KEROSENE OIL

GUM TURPENTINE

COBALT NAPHTHENATE 

PACKAGING DRUM

LAB TESTING CHEMICALS

SUPPLIERS OF PLANT & MACHINERY

MIXER

FILTER PRESS

LABORATORY EQUIPMENT AND LAB TESTING EQUIPMENT

FIRE FIGHTING EQUIPMENTS

STORAGE TANKS

PACKAGING MACHINERY

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)