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INDIAN COPPER INDUSTRY

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Wednesday, March 18, 2015

Copper was the first metal to be mined and its significance has increased with time due to its usage in various sectors. Being an excellent conductor of electricity, it forms an essential component of energy-efficient generators, transformers, motors and renewable energy production systems.

The most favorable contributing factors for the growth of Indian Copper industry include changes in global usage, industrial development in India, and domestic increases in the construction, power and telecommunications, and automobile sectors. The size of Indian Copper Industry is around 4 lakh tons, which as percentage of world copper market is 3%.India is among top 20 major producers copper globally. But falling prices of copper in international markets would also benefit India, as it is one of the world’s biggest importers of the metal, alongside China, Japan, South Korea and Germany. India is emerging as net exporter of copper from the status of net importer on account of rise in production by three companies.

Copper goes into various uses such as building, cabling for power and telecommunications, automobiles etc. The two major states owned telecommunications service providers namely the BSNL and MTNL have consumed 10% of the country's copper production. In 2012, India's production of refined copper is 689,312 MT, which is around 4% of the total world production.

From the status of a net importer, India is emerging as a net exporter of copper on account of a rise in the production of copper. Growing trend in the building construction and automobile sector is expected to keep demand of copper high.

Leading Copper Industries

 

•     Sterlite Industries Ltd.

•     Hindalco Industries

•     Hindustan Copper

Demand :        Past & Future

Year                     th MT

2000-01           288

2001-02           315

2002-03           397

2003-04           415

2004-05           438

2005-06           486

2006-07           545

2007-08           616

2008-09           702

2009-10           807

2010-11           896

2011-12           967

2012-13         1044

2013-14         1127

2014-15         1217

2019-20         1787

Market Structure:

Market Segmentation

Segment                                       Share (%)

 

Electrical Industry                              32

Electronics & Communications      20

Handicrafts                                      12

Process & General                              10

Transport                                            10

Construction                                              7

Consumer durables                               7

Market Growth Rates

1990-91-1996-97                              8.0%

1996-97-2001-02                              8.0%

2001-02-2006-07                            11.5%

2006-07-2011-12                            12.2%

2011-12-2019-20                              8.0%

 

Sensitivity Coefficient                7.5%

Source: NPCS Team

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction
  • Project Introduction
  • Project Objective and Strategy
  • Concise History of the Product
  • Properties
  • BIS (Bureau of Indian Standards) Provision & Specification
  • Uses & Applications
Market Study and Assessment
  • Current Indian Market Scenario
  • Present Market Demand and Supply
  • Estimated Future Market Demand and Forecast
  • Statistics of Import & Export
  • Names & Addresses of Existing Units (Present Players)
  • Market Opportunity
Raw Material
  • List of Raw Materials
  • Properties of Raw Materials
  • Prescribed Quality of Raw Materials
  • List of Suppliers and Manufacturers
Personnel (Manpower) Requirements
  • Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel
Plant and Machinery
  • List of Plant & Machinery
  • Miscellaneous Items
  • Appliances & Equipments
  • Laboratory Equipments & Accessories
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  • Electric Load & Water
  • Maintenance Cost
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Manufacturing Process and Formulations
  • Detailed Process of Manufacture with Formulation
  • Packaging Required
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Infrastructure and Utilities
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Project at a Glance

Assumptions for Profitability workings
Plant Economics
Production Schedule
Land & Building
  • Factory Land & Building
  • Site Development Expenses
Plant & Machinery
  • Indigenous Machineries
  • Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets
  • Furniture & Fixtures
  • Pre-operative and Preliminary Expenses
  • Technical Knowhow
  • Provision of Contingencies
Working Capital Requirement Per Month
  • Raw Material
  • Packing Material
  • Lab & ETP Chemical Cost
  • Consumable Store
Overheads Required Per Month And Per Annum
  • Utilities & Overheads (Power, Water and Fuel Expenses etc.)
  • Royalty and Other Charges
  • Selling and Distribution Expenses
Salary and Wages
Turnover Per Annum
Share Capital
  • Equity Capital
  • Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals
  • Revenue/Income/Realisation
  • Expenses/Cost of Products/Services/Items
  • Gross Profit
  • Financial Charges
  • Total Cost of Sales
  • Net Profit After Taxes
  • Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements
  • Current Assets
  • Gross Working. Capital
  • Current Liabilities
  • Net Working Capital
  • Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets
  • ROI (Average of Fixed Assets)
  • RONW (Average of Share Capital)
  • ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios
  • D.S.C.R
  • Earnings Per Share (EPS)
  • Debt Equity Ratio
Annexure 7 :: Break-Even Analysis
  • Variable Cost & Expenses
  • Semi-Var./Semi-Fixed Exp.
  • Profit Volume Ratio (PVR)
  • Fixed Expenses / Cost
  • B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume
  • Resultant N.P.B.T
  • Resultant D.S.C.R
  • Resultant PV Ratio
  • Resultant DER
  • Resultant ROI
  • Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status
  • Equity Capital
  • Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks
  • Determined Capacity P.A of Products/Services
  • Achievable Efficiency/Yield % of Products/Services/Items
  • Net Usable Load/Capacity of Products/Services/Items
  • Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation
Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit
Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,
Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit
Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses
Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges
Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses
Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses
Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)
Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)
Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits
Annexure 35 ::Projected Pay-Back Period And IRR