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SEMINAR REPORT1234

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					                        CHAPTER 1
                     PROJECT SUMMARY


Thermo mechanically treated (TMT) steel, can be described as a new-
generation-high-strength steel having superior properties such as
weldability, strength, ductility,   tensility , which meet the highest
international quality standards.

Features:

Cost-effective:

        A high tensile strength and better elongation value gives you
great saving Resists fire: Withstands temperatures up to 5,000C.

Resists corrosion:

        The TMT process gives the bar superior strength and anti-
corrosive properties.

Earthquake resistance:

        The soft ferrite-pearlite core enables the bar to bear dynamic
and seismic loading.

Malleability: TMT bars are most preferred because of their flexible
nature
Enables welding:

        They have fine welding features.

Bonding strength:

         External ribs running across the entire length of the TMT bar give
superior bonding strength between the bar and the concrete.




HOW TMT STEEL IS PREPARED:



Under thermo mechanical treatment, the steel bars are passed through a
specially designed water-cooling system where they are kept till the outer
surface of the bars becomes colder while the core remains hot. This creates a
temperature gradient in the bars.

When the bars are taken out of the cooling system, the heat flows from the
core to the outer surface, further tempering of the bars, which helps them
attain a higher yield strength. The resulting heat-treated structure imparts
superior strength and toughness to the bars. The microstructure of the core is
a very fine-grained ferrite and pearlite. TMT bars are also known as
'quenched and tempered rebars', because of the quenching and tempering
processes involved in making the bars.
The production of quality TMT bar depends on three major factors - quality
raw materials, a properly designed and automated mill, and a well-designed
quenching and tempering technology. All rebars must be purchased based on
the properties of yield strength, tensile strength and elongation values.

Deciding the percentage of carbon content in steel has been a major challenge
for engineers. While a minimum level of carbon content in steel is essential to
achieve the required strength, excess carbon threatens its weldability. In TMT
bars, this problem has been eliminated by restricting the carbon content to 0.2
per cent to attain weldability and ensuring that its strength is not lost. The
joints can be welded by ordinary electrodes and no extra precautions are
required.

The bars come in different lengths, in sizes of 11 to 12 metres and can be
customised to the required specifications. TMT bars that have uniform and
concentrated hardened periphery and the softer core will have the desired
tensile strengths coupled with high elongation as required in seismic zones.
Depending on the size and grade, rebars with hardened periphery of about 15
to 30 per cent of the cross sectional area of the bar are ideal for civil
constructions (constructions of houses, offices, etc.)



Thermo mechanically treated (TMT) steel, can be described as a new-
generation-high-strength steel having superior properties such as weldability,
strength, ductility,   tensility , which meet the highest international quality
standards.
Features:

Cost-effective:

        A high tensile strength and better elongation value gives you great
saving Resists fire: Withstands temperatures up to 5,000C.

Resists corrosion:

        The TMT process gives the bar superior strength and anti-corrosive
properties.

Earthquake resistance:

         The soft ferrite-pearlite core enables the bar to bear dynamic and
seismic loading.

Malleability:

         TMT bars are most preferred because of their flexible nature



Enables welding:

         They have fine welding features.

Bonding strength:

         External ribs running across the entire length of the TMT bar give
superior bonding strength between the bar and the concrete.
HOW TMT STEEL IS PREPARED:



Under thermo mechanical treatment, the steel bars are passed through a
specially designed water-cooling system where they are kept till the outer
surface of the bars becomes colder while the core remains hot. This creates a
temperature gradient in the bars.

When the bars are taken out of the cooling system, the heat flows from the
core to the outer surface, further tempering of the bars, which helps them
attain a higher yield strength. The resulting heat-treated structure imparts
superior strength and toughness to the bars. The microstructure of the core is
a very fine-grained ferrite and pearlite. TMT bars are also known as
'quenched and tempered rebars', because of the quenching and tempering
processes involved in making the bars.

The production of quality TMT bar depends on three major factors - quality
raw materials, a properly designed and automated mill, and a well-designed
quenching and tempering technology. All rebars must be purchased based on
the properties of yield strength, tensile strength and elongation values.

Deciding the percentage of carbon content in steel has been a major challenge
for engineers. While a minimum level of carbon content in steel is essential to
achieve the required strength, excess carbon threatens its weldability. In TMT
bars, this problem has been eliminated by restricting the carbon content to 0.2
per cent to attain weldability and ensuring that its strength is not lost. The
joints can be welded by ordinary electrodes and no extra precautions are
required.

The bars come in different lengths, in sizes of 11 to 12 metres and can be
customised to the required specifications. TMT bars that have uniform and
concentrated hardened periphery and the softer core will have the desired
tensile strengths coupled with high elongation as required in seismic zones.
Depending on the size and grade, rebars with hardened periphery of
about 15 to 30 per cent of the cross sectional area of the bar are
ideal for civil constructions (constructions of houses, offices, etc.)




                        CHAPTER 2
                       INTRODUCTION

      BOND OF TRUST


      THE WORD “A.C.TURBO”. TMT A PRODUCT OF A.C. STRIPS LTD
      RAIPUR IS SYNONYMOUS WITH PREMIUM QUALITY TMT BARS.

      THE A.C. SRIPS (P) LTD ESTABLISHMENT SINCE 1997 IS KNOWN FOR
      SETTING UP THE FIRST FULLY AUTOMATIC ROLLING MILL IN
      CHATTISGARH. AN ISO 9001:2000 CERTIFIED FIRM,WE HAVE PROVED
      OUR METTLE IN THE INDUSTRY OF TMT BARS, WHICH FINDS
      APPLICATION FOR VARIOUS CONSTRUCTION PROCESS.

      WE ARE ALSO RELIABLE NAME AND ARE REGESTERED WITH “BIS”TO
      PRODUCE FE 415 & FE 500 GRADE STEEL BARS. ADVANCED
      MANUFACTURING FACILITIES AND SOPHISTICATED TECHNOLOGY
      HAVE BEEN AN IMP FACTOR IN OUR GROWTH.

      WE SPECIALISE IN THE PRODUCTION OF TMT STEEL & ARE EQUIPED
      WITH STATE OF THE ART HI-TECH STEEL ROLLING MILL.THE
      PRODUCTION & AN IN-HOUSE QUALITY CONTROL FACILITY
      MANNAGED BY A GROUP OF HIGHLY QUALIFIED PROFFESHONALS &
TECHNOCRATS RENDERS THE COMPANY TO ACHIEVE THE QUALITY
OF HIGHEST ORDER IN PRODUCTION OF TMT BARS.

THE COMPANY OPERATES ON THE PRINCIPAL OF ACHIEVING
MAXIMUM COSTOMER SATIFACTION & VALUES THROUGH MAKING THE
HIGH QUALITY & HIGH STRENGTH,PRODUCT AVAILABLE AT THE MOST
RESONABLE.




BOND OF STRENGTH

  WE PRESENT OURSELVES AS AN EMINENT MANUFACTURERS OF
   TMT   BARS    (WE      HAVE RECENTLY   COMMISSIONED
   MANUFACTURING “TMT” BARS USING JET THERM IQ
   TECHNOLOGIES INC. (U.S.A)

  THIS TECHNOLOGY IMPARTS BETTER STRENGTH & ELONGATION
   FOR VARIOUS CONSTRUCTION PURPOSE.

  THE MACHINERY & THE QUENCHING SYSTEM SELECTED IMPARTS
   THE PERFECTION IN MECHANICAL PROPERTIES AS PER IS-1786.
   A. C. TURBOTMT MAKES QST BARS (COMMONLY KNOWN "TMT
   BARS") USING


  THE IQ TECHNOLOGY FOR WHICH WE HAVE BEEN GRANTED THE
   LICENSE RIGHT TO USE IQ™ JET THERM (EXCLUSIVE
   COLLABORATOR OF IQ TECHNOLOGIES, USA) THE COMPANY
   THAT PIONEERED AND PATENTED THIS REVOLUTIONARY
   TECHNOLOGY.

  REALIZING THE HUGE POTENTIAL OF TECHNOLOGY, A. C. TURBO
   TMT DECIDED TO ADOPT IT, IN STRICT ADHERENCE TO IQ™ JET
   THERM GUIDELINES AS PART OF ITS ENDEAVOR TO PROVIDE
   MEANINGFUL AND QUALITY SERVICE TO THE NATION.

  JOINING HANDS WITH IQ™ JET THERM, WE THE A.C.TURBO TMT
   HAVE SET OUT ON A MISSION TO BRING WITHIN THE REACH OF
          EVERY INDIAN HOME A RELIABLE AND INTERNATIONAL QUALITY
          OF STEEL BARS. A. C. TURBO TMT STEELS EVEN IN ITS INITIAL
          STAGES, HAD GAINED REPUTATION FOR USING A HIGH QUALITY
          RAW MATERIAL TO PRODUCE ITS STEEL. THIS RAW MATERIAL IS
          PRODUCED THROUGH LADDIE REFINED FURNACE. THE BILLETS
          AND INGOTS GO THROUGH INTENSE LABORATORY CHECK UP AT
          OUR PLANT SO THAT ONLY THE BEST OF ALL RAW MATERIAL
          GOES UNDER THE ROLLING PROCESS.




                    CHAPTER 3
      PROJECT CONCEPT & PRODUCTS




TMT / TOR BARS

Thermo mechanically treated (TMT) steel, can be described as a new-
generation-high-strength steel having superior properties such as
weldability, strength, ductility and tensility, which meet the highest
 international quality standards. One of the most common types of
 TMT construction is used for home and building construction.

 The production of quality TMT bar depends on three major factors -
 quality raw materials, a properly designed and automated mill, and a
 well-designed quenching and tempering technology. All bars must be
 purchased based on the properties of yield strength, tensile strength
 and elongation values




                Technical Specifications
                          A C TURBO INC

                          CTD/TMT BARS

              Nominal
Dia      Area  Wght         Range Of Wght           Nominal Length

(mm)     (cm2) (Kg/Mtr)          (Kg/Mtr.)          (Mtr/MT) appx

 6       0.28    0.222    0.21       -       0.24       4500

 7       0.38     0.3     0.28       -       0.32       3311

 8        0.5     0.4     0.37       -       0.42       2500

 10      0.78     0.62    0.57       -       0.66       1600

 12      1.13     0.89    0.84       -       0.93       1100

 16      2.01     1.58    1.5        -       1.66        630

 20      3.14     2.47    2.39       -       2.54        400
22        3.8     2.99     2.9      -      3.07               330

25       4.91     3.86    3.74      -      3.97               260

28       6.16     4.84    4.69      -      5.98               200

32       8.04     6.32    6.13      -      6.51               155

36       10.18    7.99    7.75      -      8.23               120

40       12.57    9.87    9.57      -     10.17               100




                           CHAPTER 4
                             PROMOTERS

     1) Mr.Chandramukh Patnaik
      Executive Director (Projects)
      Age: 57 years
      B.Tech. and M.Tech. in Chemical Engineering from IIT Kharagpur
      Spearheading the 5 MnTPA greenfield integrated steel project at
      Raghunathpur, Purulia Dist of West Bengal
      Over 30 years of experience in operation and projects in major steel
      companies like Tata Steel, Essar Steel, Ispat, Saudi Iron and Steel, Jindal
      Stainless and Uttam Galva
      Prior to joining JBIL worked as ED (Technology) with Jindal Steel & Power
      Limited.
2)Mr. Raj Kumar Sharma
Chief Financial Officer
Age: 42 years
B.Com. and ICWA
Over 18 years of experience in finance and accounts with
variouscompanies
Responsible for Company’s finance and accounts operations and other
financial strategies
Prior to joining JBIL worked with Adhunik Group.



3)Mr.S.K. Sachan
Vice President (Projects)
Age: 39 years
B.Tech. in Mechanical Engineering from Regional Engineering College,
University ofRaipur
Leading the company’s expansion and brown field projects at Durgapur,
West Bengal.
Over 17 years of experience in project implementation in major steel
companies like Malvika Steel and Jindal Steel & Power
Prior to joining JBIL worked with Visa Steel Limited in project
implementation.



4)Mr. Partho Kumar Roy
Vice President (Marketing)
Age: 54 years
B.Tech. in Metallurgical Engineering from Banaras Hindu University
Responsible for the development of markets and sale of alloy steel
Over 30 years of experience in marketing of alloy steel productsin
companies like Gonterman Pipes and Bihar Alloys & Steel Limited
Prior to joining JBIL worked with Usha Martin Industries Limitedas Vice
President (Marketing).



5)Mr. John Joseph
Vice President (HR)
Age: 48 years
M.A.(SW) from the University of Madras
Responsible for formulation and implementation of human
resourcestrategies for the Company
Over 24 years of experience in all aspects of HR with leading companies
like Bharat Heavy Electricals Limited, Shalimar Paints and the OP Jindal
Group
Prior to joining JBIL, headed corporate HR for Jindal Steel & Power limited.




6)Mr. Bivas Chakraborty
Deputy General Manager
Age: 43 years
B.Sc. from Calcutta University
Responsible for the development of markets and sale of ductile iron pipes
(DI Pipes)
Over 20 years of experience in marketing and sale of DI Pipes and other
pipe solutions in companies like Bengal Tools Limited and Electro Steel
Casting Limited.
Prior to joining JBIL worked with Doshion-Veolia Water Solution Company
as Manager (M&S) for its EPC division.
                         CHAPTER 5
           MANUFACTURING PROCESSES
                       & TECHNOLOGY

 Under thermo mechanical treatment, the steel bars are passed through a
  specially designed water-cooling system where they are kept till the outer
  surface of the bars becomes colder while the core remains hot. This
  creates a temperature gradient in the bars.

   After the intensive cooling, the bar is exposed to air and the core re-heats
   the quenched surface layer by conduction, therefore tempering the external
   martensite. When the bars are taken out of the cooling system, the heat
   flows from the core to the outer surface, further tempering of the bars,
   which helps them attain a higher yield strength. The resulting heat-treated
   structure imparts superior strength and toughness to the bars. Cooling
   process                  is                illustrated                below:
 The pre-determined cooling of the bar periphery transforms the peripheral
  structure to martensite and then annealed through the heat available at the
  core. The peripheral and core temperature difference finally equalises at
  around 600 0C and the resultant bar structure is of tempered martensite at
  the periphery and of fine-grained ferrite-pearlite at the core.

  Generally speaking, the resultant soft core forms about 65-75 per cent of
  the area (depending upon the desired minimum yield strength) and the rest
  is the hardened periphery. The equalizing temperature together with the
  final rolling temperature is the most important parameter to achieve the
  required mechanical properties.
 Finally, when the bar is discharged on to the Cooling Beds, the remaining
  austenite transforms into a very fine-grained pearlite structure.

   The figure below illustrates a typical TMT bar manufacturing process:
   After this process of thermo mechanical treatment, a dark etched
     peripheral rim of tempered martensite and a grey core of ferrite pearlite get
     formed. The tempered martensite surface layer is very hard while the
     microstructure of the core is a very fine-grained ferrite and pearlite which is
     quite soft. The result is a structure with a high yield strength combined
     with high ductility.




  Microstructure of TMT bar showing              Tempered Martensite Rim
peripheral rim of tempered martensite &
   core of ferrite pearlite get formed
                      CHAPTER 6
        PLANTS & MACHINERY REQUIRED
PLANTS & MACHINERY USED IN MANUFACTURING OF TMT BARS



   1) AUTOMATIC STEEL ROLLING MACHINE.



   2) COOLING BED .



   3) SHEARS HOT SAW MACHINES.



   4)TMT BARS HOLDING MACHINE.



   5) MILL STAND.



   6) TWIN CHANNEL MACHINE.
AUTOMATIC STEEL ROLLING MILL

USE:

This machine is used to provide torsion to steel bars by automatic
means

Cost of machines: 1.16 million $(u.s).(per unit)

It is manufactured in “canada”.it is manufactured by mr.v.b smith
(p & n machinery p.v.t, l.t.d ) (canada)
        COLLING BED

USES:

   This machine is used for cooling the bars after manufacturing
    process of thermo mechanically treated bars after providing the
    proper shape to the bars
   Cost’s:1.15 million $(u.s.) ( per unit)

    it is manufactured in “canada” by

    mr.a.s.hamilton

    (p & n machinery p.v.t. l.t.d) (canada)
SOME MORE EQUIPMENTS ARE USED
IN THE MANUFACTURING PROCESS
OF TMT




SHEARS HOT SAW MACHINE   TMT BARS HOLDING MACHINE




MILL STANDS              TWIN CHANNEL MACHINE
                       CHAPTER 7
LOCATION & INFRASTRUCTURE REQUIRED



             LOCATION REQUIRED

 Site plan suggesting suitable location of plant and query, accessibility
  and transport links etc. in the national and reasonable context
  keeping in view the possibilities of setting up of the integrated plant
  near iron ore mines or in two stages i.e. up-to Clinker stage at /near
  iron ore mines and manufacturing Unit near consuming center .

 Preliminary assessment of iron ore requirement considering its quality
  and contemporary scales of operations, the extent of reserve and its
  adequacy for life of the plant keeping in view the fact the quality of
  iron ore should have been adequately tested/explored in terms of
  specification of iron ores to have a preliminary ideas of raw designs
  and to rule out the possibilities that minor constituents present in the
  iron ore would not have detrimental effects on plant and equipments
  on the basis of data collected from GSI/ State Directorates of
  Geology & Mining and/or by any other recognized Authority.
            IMPORTANT KEYPOINTS FOR LOCATON


 (a)   What kind of land would be taken-up, from whom, and at what
       price?

 (b)   To what extent the used up land will be regenerated?

 (c)   What kind of compensatory investments will be made to improve
       vegetation on different kinds of land viz; cultivated, pasture, forest
       and wasteland.

 (d)   Availibility of iron ore nearer to plant location



INFRASTRUCTURE REQUIRED
  The consistent growth of the infrastructure and housing sectors has
   increased the demand for cement, bringing cheer to the cement
   transportation market. Apart from the influx of more global cement
   manufacturers, the cement transportation market will also benefit
   from favorable government initiatives related to various infrastructure
   projects and urban development, which can revive the housing sector
   also.
  The broad assessment of transport requirement for coal, cement and
   slag/fly ash movement (in case relevant), and lime stone (in case
   suitable location for setting the plant is at fair distance from iron ore
   deposits) likely sources of coal etc. and mode of transport available
   for various alternatives.
  Land requirement

  Similarly, assessment of demand and availability of power from
   Public Source (in the case of eventuality of delay/ deferment of
   captive power generation).
CHAPTER 8
             MANPOWER REQUIRED


  Manpower is a key factor in manufacturing or production
   level. Because it is due to manpower all working of plant are
   committed.



     Local labours are required for the project, as semiskilled
     and skilled manpower.



  For heating ,shpe giving, colling and transporting purpose
   skilled labours are used from expert factory.



  CLASSIFICATION OF PEOPLES INVOLVED IN TMT PLANTS

       Administrative & Managerial

       Technical & Laboratory

       Skilled ,Semi-Skilled & Front Line   Managers

       Unskilled Workers
                                     CHAPTER 9
       RAW MATERIAL ,CONSUMABLES &
                UTILITIES
RAW MATERIALS OF TMT BARS

                                             AC
                           IS:1786
                                                      AC TURBO AC TURBO
    Chemistry     Unit                     TURBO         TMT               TMT
                            Fe 415           TMT        Fe 500            Fe 550
                                            Fe 415
    Carbon         %      0.30 max         0.25 max    0.20 max       0.20 max
    Sulphur        %      0.06 max         0.05 max    0.05 max       0.05 max
    Phosphorou     %      0.06 max         0.05 max    0.05 max       0.05 max
s
    S&P            %      0.11 max         0.10 max    0.10 max       0.10 max
** The above figures are indicative only



SAVING BY DIMENSIONAL TOLERANCE
AC TURBO TMT is guaranteed for not being heavy and comes with a section weight that is lower than
the nominal, which reduces the quantity of steel consumed by 10% to 20% without compromising on
strength.


                             Tolerance                      Per Wt. Variation
                                                        Limit                  Individual sample
                 Specified (grams/meter)                        (kg/meter)          variation
    Size
                (kg/meter)                       AC TURBO           AC TURBO           GYAN TMT
                               ISI Std.                    ISI Std.           ISI Std.
                                                  TMT Std.           TMT Std.              Std.
    8mm           0.395         367 to 423        379 to 411      0.056            0.032   ±7       ±5
    10mm          0.617         574 to 660        598 to 636      0.086            0.038   ±7       ±4
    12mm          0.888         844 to 932        870 to 906      0.088            0.036   ±5       ±3
    16mm          1.580        1501 to 1659      1548 to 1612     0.158            0.064   ±5       ±3
    20mm          2.470        2396 to 2544      2445 to 2495     0.148            0.050   ±3       ±2
    25mm          3.850        3735 to 3965      3811 to 3889     0.230            0.078   ±3       ±2
    28mm          4.830        4685 to 4975      4782 to 4878     0.290            0.096   ±3       ±2
    32mm          6.314        6125 to 6503      6207 to 6884     0.290            0.096   ±3       ±2
Tests were conducted on concrete beam column joints, reinforced with AC TURBO TMT
were subject to repeated revered load with inelastic strains. These simulation tests were
conducted to evaluate their performance during earthquake. The results showed
uniformity maintained ductility till failure due to uniform energy dissipation during each
cycle.


AC TURBO TMT bars were tested to prove the higher thermal stability in comparison to
traditional cold twisted bars and have no loss of strength up to 6000CBN
                        CHAPTER 10
    WORKING CAPITAL REQUIREMENT


           The term working capital is commonly used for the capital
required for day-to-day operations of a business. Generally, two
concepts of working capital are the gross working capital and the net
working capital. Gross refers to the firm's total investment in the
current assets. Net supports the view that working capital is the
difference of current assets and current liabilities. Net working capital
may be positive or negative although gross working capital is always
positive. According to the other school of thought (net concept), the
working capital refers to the difference between current assets and
current liabilities. It is the excess of current assets over current
liabilities. Current liabilities refer to the claims of outsiders which are
expected to mature for payment within an accounting year and
include creditors for goods, bills payable, bank overdraft, accrued
expenses, etc



TYPES OF WORKING CAPITAL:-

       Working capital can be classified on the basis of its concept or
on the basis of periodicity of its requirements.

(A) On the basis of Periodicity of Requirements:-Working capital can
also be classified into Fixed or Permanent Working Capital and
Temporary or Variable Working capital.Permanent or Fixed Working
Capital
CHAPTER 11
 MARKET
                       CHAPTER 12
        COST OF PROJECT,SOURCE OF FINANCE


Project Cost:-

   ·    Cost of Land .
   ·    Cost of Civil Construction.
   ·    Cost of Plant & Machinery .
   ·    Cost of Miscellaneous Fixed Assets.
   ·    Preliminary and Pre-operative Expenses.
   ·    Interest during Construction.
   ·    Contingency.
   ·    Margin Money for working capital.




Means of financing:-

Bond Market :-

          During the week, the hike in the US Fed rates by a quarter
percentage points to 5.25 per cent renewed the fears of a hike in the
domestic interest rates by RBI and also the market continued to be
weighed down by the oil prices concerns. The triple-A 5-year
benchmark yield rose to 8.55 per cent from its previous weekly close
of 8.46 per cent, while its spread over underlying gilt widened to 75
basis points from 65 basis points in the previous week.
Foreign Exchange Market:-

            In the foreign exchange market, the rupee recovered early
losses against dollar to end at Rs 46.05 per dollar from Rs 46.13 per
dollar in the previous week. During the week, it did fell to 22-month
low due to weak domestic stock exchange and non- deliverable
forward arbitrage, but recovered as the stock market rallied and US
Fed hinted at an end to the tightening policy. Moreover, poor FIIs
inflows and month end dollar demand by corporates also weighed
down the rupee movement and pushed it to a low of Rs 46.39 per
dollar. In the forward premia market, the six month annualised
forward premia closed at 1.09 per cent on June 30,2006 as compared
to 1.26 per cent on June 23,2006.




Commodities Futures Derivatives:-

            Following the media reports, of late, about rumours in the
market that the government has been considering banning futures
trading in essential commodities, FMC, on June 27, issued a warning
that no person or organisation should indulge in rumours-mongering,
which affects trading in futures..
Government Securities Market

Primary Market :-

              During the week, RBI mopped up Rs 1075 crore and Rs
1100 crore through 91-day and 182-day treasury bills under the
regular auction; the cut-off yields for 91-day and 182-day treasury
bills were 6.3563 per cent and 6.7797 per cent, respectively. Also, RBI
has fixed the rate of interest on the Floating Rate Bonds, 2015
applicable for the next half-year (July 2,2006 to January 01,2007) at
6.83 per cent per annum; while the rate interest on the Floating Rate
Bonds, 2017 applicable for half-year (July 2,2006 to January 1,2007)
has been fixed at 6.69 per cent per annum.

Secondary Market:-

             During the week, the secondary market for gilt-edged
securities remained subdued on account of domestic interest rates
worries. Moreover, the finance minister’s comment that the
government had advanced part of its July 3-11 borrowing when it
raised the size of the last auction resulted into a marginal dip in the
yields the gilt-edged securities. Also, the expectations of the
government reducing the size of borrowing by Rs 4,000 crore in its
forthcoming auction propped up the gilt prices.
                          CHAPTER 13
    PROJECTED PROFITABILITY & BREAK EVEN
                 ANALYSIS




Projected Profitability:-

     Profitability of industry are projected in terms of financial
account which shows profits and losses of industry.There are some
analysis technique in accounting which is used to project all industry
relevant transaction.



Financial Projections:-

     Projected profitability & balance sheet.
     Cash flow.
     BEP & IRR.
     Ratio Analysis.
     Sensitivity Analysis.


    Projected profitability & balance sheet:-
              In this projection we see how much liability and asset
possess by industry.It is a representation of how much of working
capital during a year .Balance sheet gives how much reserve capital
of industry.so we can say that it is a representation of liability and
asset of industry.
Cash flow:-
              Cash flow is a record of how cash can flow during a
financial year on various transaction.There is inflow and outflow of
cash on transaction.It is used to control outflow of cash .By using
cash flow account we can budget a current financial year .


Break Even Analysis

    The Indian cement industry has witnessed a phenomenal
capacity addition to the tune of about 52 mn tonnes in the last two
financial years which accounted for about 24% of the industry' s
capacity of 218 mn tonnes at the end of FY09. In the last two financial
years, the cement industry has registered a double-digit growth in
capacity addition compared to moderate growth of 3-7% registered
during period FY 03-07. As a result, industry' s capacity utilisation
rate which showed a rising trend upto FY07, has dropped to a level of
83% in FY09.

     In FY09, the GDP growth slowed down to 6.7% compared to the
9% growth reported in FY08. However, cement consumption growth in
FY09 at 8.4% has been able to maintain its multiplier factor with GDP
growth at 1.25 times.

     In FY09, all the regions except the Western and the Northern
region have outperformed the industry in consumption growth. The
Eastern region continued its buoyant performance and registered the
highest cement consumption growth of 11.3% on yoy basis. The
Southern and Central regions also reported impressive double-digit
growth of 10.4% in cement consumption. But, the Northern region has
registered the lowest growth in the cement demand on yoy basis.
Comparatively, poor demand growth registered by the Western region
was on account of high base of the last year and also slightly
subdued demand.

      With focus on capacity addition, many small/medium players
have been able to capture more market share and consolidate their
position in the industry in the last two years. Market share of top five
individual companies taken together show a decline to a level of
44.3% in FY09 from 46.3% in FY08
                  CHAPTER 14
                    CONCLUSION



It is estimated that that steel consumption in India will
rapidly rise in the next 10-15 years to reach a level of 140-
150 million tonnes per year by 2020 of which 55% (77mT)
will be long products. Rebar demand will see more than a
five-fold jump to around 35-40 mT/year to allow for
development of the vast hinterland. The best of quenching
and tempering technologies are today available in the
country and Q & T rebars have already made a dent in the
market. By 2020 over 90% of the rebars used will be Q&T
rebars. It is imperative that the B. I. S. put into place a
relevant Code for rebars at the earliest so that the country
utilises this technology to its full potential – savings in
steel consumption and safety. The new Code could be on
lines of the one adopted by New Zealand. It should make it
mandatory for all rebars to have marks that make it easy
for the Grade and name of producer to be identified. This
will clean up the rebar sector and be beneficial to the entire
construction industry.
References:

   1.       “TMT” Bars – The Best & the Worst of Times by
        R. K. Markan, 2002.

   2.      Reinforcement – Global & Indian Scenario by F.
        Tamm & R. K. Markan, 2003

   3.       Thermo-processing for High Strength rebars by
        R. K. Markan & F. Tamm, 2003

   4.      Properties of Thermo-processed Thermex HSD
        Rebars by R. K. Markan & R. S. Chavan , 2003

   5.      India: Steel 2020 & Relevance of Thermex
        Technology by R. K. Markan, 2004

   6.      Relevance of Quenching & Tempering
        Technology to India, by R. K. Markan, 2004

   7.      “TMT” Rebars & What Needs to be Done by R. K.
        Markan, 2004

   8.      The A, B, & C of ‘TMT’ Bars, Master Builder, 2004

   9.      The Australian/New Zealand Standard AS/NZS
        4671-2001 “Reinforcing Steel Materials”

   10. New Reinforcing Materials by K. Towl, Pacific
      Steel

   11. L, N & E Grade 500 Reinforcing Steel by D. Bull &
      C. Allington, University of Canterbury

   12. Welding Newly Developed, High Strength,
      Seismic Grade Reinforcing Bars by W. Scholz & B.
      Roberts

   13. Sub-Standard Rebars in the Indian Market by Dr.
      C. S. Vishwanath and Others, 2004

				
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