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Lead Production (Litharge, Refined Lead, Red Lead & Grey Lead)

Capacity Litharge : 960 MT/Annum Refined Lead : 1800 MT/Annum Red Lead : 440 MT/Annum Grey Lead : 525 MT/ Plant and Machinery cost 82.00 Lakhs
Working Capital 0.00 Rate of Return (ROR) 31.00 %
Break Even Point (BEP) 54.00 % TCI 0.00 Lakhs
Cost of Project 361.00Lakhs

Description:

Lead is a relatively soft metal with bluish-white lusture but on exposure to air, it becomes covered by a dull, gray layer of basic carbonate that adheres closely and protects it from further oxidation or corrosion. It is an important component of batteries, and about 75% of the world's lead production is consumed by the battery industry. Lead is also commonly used in glass and enamel.

India Lead Acid Battery Market is projected to grow at a CAGR of over 9% during 2018-24. India lead acid battery market is projected to reach $ 7.6 billion by 2023. Anticipated growth in the market can be attributed to booming demand for automobiles, in addition to increasing focus of the government towards boosting the penetration of electric vehicles in the country. Entrepreneurs who invest in this project will be successful.

 

Few Indian major players are as under

·         A P L Metals Ltd.

·         Gravita India Ltd.

·         Indian Lead Ltd.

·         Lead Finvest India Ltd.

·         M T I Materials Pvt. Ltd.

·         Metal Link Alloys Ltd.

·         Metaltech Engineering Pvt. Ltd.

 

Lead Production (Litharge, Refined Lead, Red Lead & Grey Lead)

Capacity 0 Plant and Machinery cost 0.00 Lakhs
Working Capital 0.00 Rate of Return (ROR) 0.00 %
Break Even Point (BEP) 0.00 % TCI 0.00 Lakhs
Cost of Project 0.00Lakhs

Description:

Lead Production (Litharge, Refined Lead, Red Lead & Grey Lead)

Lead is a soft and malleable metal belonging to the carbon group. It is the heaviest non-radioactive element which occurs naturally on earth in the form of four isotopes: lead-208, 207, 206, and 204. It is generally found in ores with copper, silver and zinc and is extracted together with these metals. Lead compounds exist in two main oxidation states: +4 and +2. It is widely used in construction activities, production of weights, lead-acid batteries, and as a radiation shield. Conventional lead-acid batteries have a significant history in providing energy storage for a wide range of end-use applications, in mobile as well as stationary applications.

Usually, lead is found in conjunction with other metals such as silver and zinc and is mined as a by-product. The ore is first mined post which it is concentrated, smelted and refined in a blast furnace with limestone and coke to remove and recover the other metals.

The lead metal is primarily extracted from sulphide ore i.e. galena, which has the 86.6% lead content. Two other minerals commercially mined for lead are cerussite and anglesite. Over 95% of all lead mined is derived from one of these three minerals.

The principal usage of lead is for the manufacturing of lead-acid batteries which is used for both automotive and industrial applications. Lead is also used in remote access power systems, load levelling systems, in compounds in the glass and plastics industries and radiation shielding. Lead is a metal which effectively resists corrosive effects of atmospheric gases and acidic substances and it is, therefore, largely used for coating iron-sheets, sheathing cables, lining acid tanks etc.

Batteries (74%): The single largest use of lead is in the manufacture of batteries (74%), which can be sub-divided into SLI (Starting-Lighting-Ignition) batteries (50%) and Industrial Batteries (24%). Demand for both, SLI batteries and Industrial batteries can be further split into demand from new sales and replacement demand. In addition to this, lead acid batteries are used in many other applications where they may provide main or auxiliary power.

SLI Batteries: Lead is the primary ingredient used for manufacturing automotive batteries. These batteries are mainly used in cars and light vehicles, but are also found in other applications such as golf carts and boats. For SLI batteries segment, replacement demand outstrips the demand from the original equipment manufacturers (OEM’s) in a ratio of about 3:1. A standard lead acid battery for starting, lighting and ignition of vehicles has the following average composition by weight: Lead metal: 34%; Lead oxide paste: 39%, Electrolyte (free sulphuric acid):11-12% others (ebonite, PVC, paper, etc.): 8-10%, polypropylene 5-6%

Lead is used for cable sheathing especially for electrical cables and telecom cables due to its corrosion resistance, water imperviousness and ductility properties. Lead is also used for sheathing of cables which are used in the petrochemical industry, under sea and underground high voltage cables. Though, aluminium or stainless steel sheaths can be used for underground cables, there is no substitute for under-sea cables, as stainless steel or aluminium do not have the same resistance to corrosion by salt water as lead. Similarly, lead exhibits corrosion resistance by oils and hence is used in underground cables by the petrochemical industry as well.

Market Outlook

In India, lead mines are mainly concentrated in the state of Rajasthan. The lead industry in India is poised to perform well on the back of good demand prospects. India is Asia's largest lead consuming market after China where growth is largely dependent on the demand from the automotive sector and the industrial sector. India has the second largest number of mobile subscribers in the world after China, and is currently ranked 5th in global vehicle production. India's growing telecom industry and on-going infrastructure development has boosted the industrial battery demand, as is the case with an expanding photovoltaic market which is planned to reach 227 GW by 2022.

Growth of the building construction industry is anticipated to be one of the major factors driving the demand for lead over the next few years. Lead is widely used in the construction industry as architectural metals for roofing materials, gutters and gutter joints, and on roof parapets. Moreover, increasing demand for lead-acid batteries for automotive application on account of rising automobile industry is expected to contribute to the growth of the market.

However, growing health concerns regarding the use of lead paints is expected to slow down the growth of the market. North America was the largest consumer for lead owing to its vast construction and automobile industry. The demand in Europe is expected to rise moderately on account of declining automobile sales. However, future market growth is expected to be from Asia Pacific on account of rising demand for energy in smart grid technology which includes electrical vehicles operated on lead batteries.

This factor is further expected to provide new opportunities for the growth of the market. Development of absorbed glass mat (AGM) lead acid batteries on account of their favorable characteristic of being maintenance-free are also expected to provide growth opportunities for the lead market.

The global mine production of lead amounted to 4,703 KT, of which China (2,400 KT), followed by Australia (313 KT) accounted for 51% and 9.6% of the production respectively. Other nations which contributed to the global mine production of lead were USA (6.7%), Peru (6.4%), Russia (5.3%), and Mexico (4.9%). India accounted for 3.2% of the global mine production during CY17.

Global refined lead production in CY17 increased by 2.6% to 11,451 KT, and metal consumption increased by 4.2% to 11,594 KT, resulting in a production to consumption deficit of about 143 KT of refined lead. There was an increase in production of refined lead in Europe, Canada, China, India and Kazakhstan while the production was significantly lower in the United States, Australia and the Republic of Korea.

The increase in overall global usage was influenced by a 3.1% rise in demand from China. Refined lead usage also increased in Japan, the Republic of Korea and the United States. In the European region, demand was 3.5% higher due to the increase in usage in Germany, Greece, Italy, Poland and the UK

Lead demand in the global markets is driven by its usage in batteries (80%), rolled and extruded products (6%), pigments and compounds (5%), ammunition (3%), alloys (2%), cable sheathing (1%) and miscellaneous other applications (3%).

 

 

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Information

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The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.


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

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  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

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     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