ROCK IS LIFE

HOSUR(TN)

PROJECT REPORT FOR SETTING UP GRANITE

PROCESSING BLOCK CUTTER UNIT
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PROJECT AT A GLANCE

 Name of the Company : M/s. Acme Granites Pvt Ltd.

 Location : Head Office:

D-4, 4th floor, No.2, 1st cross,JC Road
Bangalore 600027.
: Factory:
131, Thuppuganapalli Village, sy.no.
714/1, hosur taluk, Krishnagiri dist.
After pathakotta village.

 Directors : 1) Mr. Ashok Hissaria

2) Mr. Karn Agarwal

 Products to be Mfg. : Granite cut to slabs and Articles

 Installed Capacity : Slabs - 8,00,000 SFT P.A.

 Capacity Utilization : Years Slabs

1st Year 85%
3rd Year 90%
5th Year 95%
 Project cost

Particulars Amount (Rs. Lacs)

Land and Development 20.00
Factory/Office foundation Build 89.00
Plant & Machinery/installation 146.26
Misc. Fixed assets 13.49
Electrical, DG, Deposits 24.00
Pre & Pre-operative Exp. 5.25
Margin for working Capital 15.00
Total 313.00

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 ACME GRANITES
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 Means of Finance : Promoters Contribution 163.00

Term Loan 150.00
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Total 313.00
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Repayment of term Loan in 5 years with

a moratorium of one year.

 Salient Performance :

Years 1st Year 2nd Year 3rd Year

Turnover (Rs. Lacs)

Gross Profit

Net Profit after Tax

Ratios

Debt Equity Ratio

Break Even Point (3rd year operation)

DSCR

TABLE OF CONTENTS

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S.No. Particulars Page No.

1. Introduction 5

2. Promoters and Management 6

3. Products and its uses 9

4. Manufacturing Process 10

5. Market Potential and Strategy 12

6. Project cost and Means of Finance 13

7. Installed Capacity 14

8. Main Cost Components 16

9. Implementation Schedule 17

10. List of Enclosures 18

ACME GRANITES PVT LTD.

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1. INTRODUCTION

1.1 M/s. Acme Granites Pvt Ltd. (AGPL) was Registered as a Pvt Ltd.on
21st January, 2011 with registered office at Bangalore and Head Office
at Bangalore.
1.2 The Director of the co. is in Granite business since last 5 years from
Bangalore,
1.3 AGPL is located in the Granite Town of TN at Hosur about 50 kms from
the Bangalore City.
1.4 The production from this unit will be exported as well as sold in
domestic market. We are convinced through the acquired experiences
and we believe that strategic alliances and partnerships are vital in
leveraging our true potential, identifying more opportunities &
intensifying our commitments.
1.5 The cost of the Granite unit with the Installed Capacity of 8 lacs sq.ft.
slabs has been estimated at Rs.313 lacs. Proposed to be financed by
Equity capital and unsecured loan of Rs.163 lacs by promoters and
Rs.150 lacs by way of Finance from Bank/Financial Institute.
1.6 The promoters are associated with the Stone business from last 5
years, the relevant experience of stone industry, the relationship
which has developed with quarry operators, international buyers,
expanding granite demand world wide, demand from the domestic
market, and the present capacity is insufficient to fulfill all the export
orders and domestic market etc, all these factors has provided major
thrust to launch this project.

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 ACME GRANITES PVT LTD.
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2. PROMOTERS AND MANAGEMENT

Mr. Ashok Hissaria ( 57 years)

Mr. Ashok Hissaria has completed his Graduation from St Josephs,

Bangalore. He has over 25 years of experience in fabrication
business and also since last 5 years in stone associated business.
He has also gained sufficient knowledge in all kinds of colors of
Indian Granites.
He is well aware of the stone market domestically as well as
international market, because of his friendly nature he has
maintained very good relations with all the buyers all around.

Mr. Karn Agarwal ( 34 years)

Mr. Karn Agarwal is a MBA from University of New Brunswick,

Canada by qualification, Business expert and has learned from his
experience about the stone industry. He is young, dynamic and
multifunctional. He has a strong financial background as well as a
marketing and sales training and experience of stone industry. He
is handling his stone business in Domestic and export market since
last 5 years. He is director here, he will be full time working director
and will take care of entire business in day to day working of this
unit.

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 ACME GRANITES PVT LTD.
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Mr. Sanjay Mutha: ( consultant- age 51 years)

He is M.Com, AICWA. Has worked for 20 years with big Granite

Companies at Senior level.
He has built up as a consultant almost 20 units so far including some
the big Gang saw units and south india. He has a vast experience in
all the fields related to Granites Viz: Quarry operation, Handling
granite process industry, Marketing and finance of the industry,
selection of the manpower. He has traveled all over the world for
Granite Marketing. He has set up three “State of the Art” Granite units
in record time. Professional though cost conscious, tough bargainer
but still quality checker, very active and dynamic Sr. Executive of the
company in the capacity of consultant/ Retainer.

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 ACME GRANITES PVT LTD.
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GROUP BACKGROUND

The group has following flagship companies:

a) Tippers and Trailers India Pvt Ltd

b) Shanti Exim International Pvt Ltd

 TIPPER AND TRAILERS INDIA PVT LTD: The Company was established in
the year 2004 , since then, this company has grown exponentially.
The company is the largest manufacturer of car-carriers in India with
a market share of nearly 40%. Tippers & Trailers has been widely
accepted across the country as the most reliable in its field with all
designs approved by leading Indian automobile manufacturers -
Maruti Udyog Ltd., Hyundai, Toyota Kirloskar,Tata Motors etc.

 Recently, Tippers & Trailers India Pvt has entered the field of “Pre
Engineered Buildings” (PEBs) under the brand name of TNT Roofing
Solutions. Within a few months TNT has completed projects ranging
from warehouses, industrial sheds as well as roof top expansions.
Currently TNT has nearly 3 lac square feet of orders on hand.

 Shanti Exim International Pvt Ltd: The Company was established in

the year 2009, with a motive to offer Indian Granite to international

buyers at the best possible prices and quality. Shanti Exim
International Pvt Ltd offers its clients customized solution in terms of
payment terms as well as product selection. In a short span of time

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 Shanti Exim International Pvt was able to establish clients in Canada,
France, England, Scotland, Australia and Spain.

ACME GRANITES PVT LTD.

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3. PRODUCTS AND ITS USES:

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Granite is very durable material. It is acid and alkali proof and has
high weather resistance which does not require any special
maintenance. Due to the natural characteristics of the material it is
used in many different applications (countertops, flooring, wall
cladding, etc.). Granite slabs and tile are produced in many colors and
textures. It has better overall characteristics than most other
dimension stones. In view of the above, Granite slabs are quickly
replacing marble and ceramic in building industry. This industry is
showing an unprecedented growth in the North America Continent,
Europe and Far East Countries.

India exported more than 2500 cores worth of finish granite p.a. to
countries like Japan, Italy, Germany, Europe and USA. This shows the
tremendous value addition by processing raw blocks to finished
granites.

Granites slabs are used in wall cladding and in flooring also used for
kitchen platform. Thick slabs will be used for Monuments and external
and internal cladding.

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4. MANUFACTURING PROCESS
AGPL will procure dressed/ rough granite blocks of rectangular shapes
from various quarries. The major process steps involved in the
production of slabs and Articles of Beauty are as under:
PROCESS FOR MANUFACTURE OF SLABS

1. BLOCKS ARE TRANFERED BY TRAILER TRUCKS TO THE FACTORY.

2. BLOCKS ARE DRESSED PERFECTLY BY USING DIAMOND MONO WIRE BLOCK DRESING
MACHINE TO OBTAIN PROPER SHAPE FOR SAWING.

3. SECOND INSPECTION OF THE DRESSED BLOCK IS CARRIED OUT AT THE FACTORY

AFTER DRESSING. THIS HELPS TO JUDGE THE QUALITY AND PERFECT YIELD.

4. DRESSED BLOCKS ARE THEN LOADED ON BLOCK CUTTER FOR CUTTING / SAWING
TO OBTAIN SLABS OF DESIRED THICKNESS. THIS CUTTING / SAWING IS A
CONTINUOUS PROCESS.

5. AFTER THE SLABS ARE CUT / SAWN, THE BLOCK TROLLEY IS TAKEN OUT FROM
BLOCK CUTTER, ALL SLABS ARE WASHED AND CLEANED PERFECTLY BY USING HIGH
PRESSURE WATER JET SLAB CLEANING DEVISE.

6. CUT / SAWN SLABS ARE UNLOADED FROM BLOCK TROLLEY AND THEN SLABS ARE
SEND FOR POLISHING.

7. AFTER SETTELLING OF RESIN / EPOXY, SLABS ARE TRANSFERRED FOR FINAL

POLISHING.

8. 100% INSPECTION OF THE POLISHED SLABS, FOLLOWED BY MEASUREMENT OF

SLABS AND THEN PACKING THEM FOR FINAL DISPATCH.
For Slabs Manufacturing

Undressed Dressing Cutting on

Raw Blocks Raw Blocks Cutter Cutting of
Slabs

Resin/
Epoxy

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 Polishing Inspection Packing Dispatch

ACME GRANITES PVT LTD.

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5. MARKET POTENTIAL AND MARKETING STRATEGY

5.1 Granite supply, fabrication and installation continue to grow globally at

a rapid pace. Due to various innovations and technological advances
in the industry the cost of the finished material has been dramatically
reduced thus making granite the standard in product in housing and
commercial projects.

5.2 Nature has gifted beautiful shades of Granite to India, which is now
accepted all over World. Indian Granite is the latest trend and fashion
in international market and is considered one of the premier granite
originating countries. As granite is a natural product, there is no
substitute or alternate due to the uniqueness from country to country.
If a customer selects a shade of Granite from India, they are obliged
to buy it from India because the shade is not quarried in any other
country.

5.3 Previous years exports of finished granite are encouraging and the
World trade is growing rapidly because India is recognized as a
reliable supplier of granite products. This has helped mainly with the
shift in the Government Policy towards discouraging export of raw
blocks and encouraging export of processed products from domestic
factories. Forecasts for finished granite continue to increase over the
next decade.

5.4 Demand of Granite is growing rapidly even for the Domestic market.
This is directly related to the economic growth of India.

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5.5 All over the world natural stone has become popular because:
1. Natural stone fascinate as it is uniform product and historical.
2. Due to Its eco friendly qualities.
3. As it is environmentally compatible.
4. Natural stone is varied in colors and textures naturally.
5. It is three dimensional stone.
6. It is durable and reasonably priced.

Reason for setting up new units:

1. One of the major strengths of AGPL is the contacts that the promoters
have in the stone industry. This provides a distinct advantage to
successfully market the products through them. From origin
(quarries) to customers (wholesalers, architects, and fabricators) AG
has strong relationships through out the entire industry .
2. To process TN and Karnataka material and to make it viable by
avoiding huge transportation cost, the setting up of new unit at Hosur
was decided.

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 ACME GRANITES PVT LTD.
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6. PROJECT COST AND MEANS OF FINANCE

Particulars Amount (Rs. Lacs)

Land and Development 20.00
Factory/Office foundation Build 89.00
Plant & Machinery/installation 146.26
Misc. Fixed assets 13.49
Electrical, DG, Deposits 24.00
Pre & Pre-operative Exp. 5.25
Margin for working Capital 15.00
Total 313.00

Proposed project is to be financed as below:

Particulars Amount (Rs. Lacs)

Promoters Contribution
163.00
Equity/Unsecured Loan

Term Loan from Bank/F.Institutes 150.00

Total 313.00

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 ACME GRANITES PVT LTD.
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7. CAPACITY OF THE PLANT

The production capacity for the plant is determined mainly by the

capacity of the Multi cutter /Sawing Machines. The plant capacity is
assessed at 8,00,000 SFT of finished slabs per annum.

Block Cutter can cut on an average 3.25 CBM of material on one Trolley
and 15 Trolleys can be processed in a month and 144 Trolleys in a year
and One CBM material gives us 350 SFT of material thus Capacity p.a.
will be

3.25 CBM X 352 Trolleys X 350 SFT X 2 machines

Gives total cut slabs of 8, 00,000 SFT p.a.

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8. COST COMPONENTS OF THE PROJECT

8.1 RAW MATERIAL
 At the full production level of the installed capacity of 8,00,000 SFT
per annum the requirement of raw granite will be 2300 CBM.
 From this area we can get the colors like Black, Paradiso, Brown, Red
Multi, Kuppan Greeny etc. which are fast moving colors. Because of
the nearness to the quarry we can save on the Transportation cost.
 We have made an arrangement with the quarry owners of Granite
Blocks for the regular and constant supply of good quality blocks.
8.2 LOCATION AND SITE:
 The unit is proposed to be located at the Thuppuganapalli Village
Village, near Kamandoodi – Hosur on Pathakota road after Sati
Granite’s Gang Saw unit. This area is about 50 KM from Bangalore on
the main state highway. This area is well served with the required
infrastructure facilities like Power, Communication, and Transport
including skilled labour etc.
8.3 Machinery selection:
 The experience of our previous units & the study of various machines
and equipment’s clearly indicated that the Block Cutters and Polishing
machines which we are using presently are very good which are
supplied by M/s Julun, China ,same are being ordered with special
features:
i) Substantial reduction in capital and operating costs due to
improved productivity.
ii) The cost of production is reduced by lesser consumption seg.
iii) Flexibility to produce slabs of various thickness on the same
machine.

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 iv) Can cut more material in the same time and thus increase in
productivity at the same cost.

ACME GRANITES PVT LTD.

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8.4 POWER:

 The connected load will be 320 KVA for the present unit.

To meet the emergency power supply in case of power cut, AGPL will
be providing captive Diesel Generator Set. Of 180 KVA.

8.5 WATER:

 Water is mainly used as a coolant in the process in the polishing line.

The total requirement of water is estimated at 20,000 liters per day.
90% water will re cycled in a settling unit. Requirement of fresh
water will be only 10% amounting to 2000 liters.

8.6 EFFLUENT:

 The operation of this unit will not produce any harmful, gaseous, liquid
and solid effluents. The only effluent is slurry containing a mixture of
water and fine particles of granites. The project incorporates settling
and purification facilities. The solidification particles of granites after
settling will be used as a landfill.
8.7 MAN POWER:
 The Hosur is one of the largest Industrial area and hence the skilled
personnel and workers for the proposed unit will be available. Good
housing accommodation is also available in the proposed location.
At the proposed location there are about 10-15 Granite units under
operation. The proposed location is ideal in terms of both physical and

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 social infrastructure facilities, availability of raw material, skilled
Labour etc.

ACME GRANITES PVT LTD.

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9. IMPLEMENTATION SCHEDULE

The zero date for the project has been assumed as June, 2014.
Clearances from the various State Government, other Authorities will
be received; offers for supply are already in hand for Plant and
Machinery including offers for handling equipments. Most of the items
are with short delivery period of 2 month. On this basis the following
schedule of implementation is envisaged.

Activity Start Finish

Acquisition of Land Over

Design civil and Structural June. ‘14 June. ‘14

Construction of Building July. ‘14 Aug. ‘14

Arrangement of power Julyl ‘14 Sept.‘14

Erection of Machinery Aug ‘14 Spt ‘14

Trial Run Oct ‘14 Oct 14

Start of commercial production Nov.‘14

Thus, a total period of 4 months for the project implementation is

envisaged. This may be considered realistic as a lot of spadework has
been done and the various activities get trigged off as soon as the cost
of the project is appraised.

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 DOCUMENTS ENCLOSED

S.No. Particulars Annexure

1. Land papers A

2. Allotment of PAN/IEC/EPCG B

3. Sales Tax Registration C

4. Factory Registration D

5. Purchase orders E

6. MAA F

7. Income Tax Returns of Directors G

8. Quotations & Agreement with M/C supplier H

9. Appointment of Builder and Consultant I

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