Cost estimation of Diesel production industrial plant. Calculation of Equipment Costing, Profit, payback period, Return on investment.

1. Chapter 6: COST ESTIMATIONS
Equipment Numbers of Price of Equipment
(Rs.)
Total Price(Rs.)
Reactor 2 4104000 8208000
Catalyst 617 Pounds 1800 Rs/lb 1110600
Storage Tanks 5 10368000 18180000
Heat Exchangers 5 2790000 13950000
Pumps 5 684000 3420000
Compressor 1 24276000 24276000
Fractionator 1 1729620 1729620
Separator 2 510000 1020000
Total 71894220
Total Capital Investment
Sr. No. Item % of TEC
Total
Cost(Rs.)
1 Purchased Equipment - 71894220
2 Instrumentation 23 16535670.6
3 Piping 64 46012300.8
4 Electrical 15 10784133
5 Buildings 13 9346248.6
6 Yard Improvement 10 7189422
7 Service Facilities 75 53920665
8 Land 12 8627306.4
9 Engineering and Supervision 7 5032595.4
10 Construction Expenses 42 30195572.4
Total Direct and indirect cost 259538134.2
11 Contractors Fee 5% of D & ID cost 12976906.71
12 Contingency 10% of D & ID cost 25953813.42
Fixed Capital Investment 298468854.3
13 Working Capital Investment 15% of FCI 74617213.58
TOTAL CAPITAL INVESTMENT 373086067.9

2. Raw material cost:
Raw
material Rs/kg kg/hr Rs/hr Rs/year
VGO 30 5000 150000 1296000000
H2 178.8 112.5 20115 173793600
Total 1469793600
Production Cost:
1 Raw Material Cost 1469793600
2 Operating Labor Cost 10% of TEC 7189422
3 Utility Cost 15% of TEC 10784133
4 Maintenance & Repair cost 5% of FCI 14923442.72
5 Operating & Supply Cost 15% of M&RC 2238516.407
6 Laboratory & Testing Cost 15% of LC 359471.1
7 Patent & Royalties 3% of TEC 2156826.6
Direct Production Cost 1507445412
Fixed Charges Depreciation 10% of FCI 29846885.43
Taxes 2% of FCI 5969377.087
Insurance 1% of FCI 2984688.543
Plant Overhead Cost 50% of Labor & Maintenance Cost 11056432.36
Administration Expenses 25% Labor cost 1797355.5
Distribution & Market
expenses 10% direct production cost 150744541.2
R&D Cost 5% FCI 14923442.72
Interest 8% FCI 23877508.35
Total Production Cost 2121731711

3. Product Cost:
Product Rs/kg kg/hr Rs/hr Rs/year
Gas 37.539 91.67 3441.20013 29319025.1
LPG 37.3 241.67 9014.291 76801759.3
L naphtha 48.05 641.67 30832.2435 262690715
H. naphtha 53.835 166.67 8972.67945 76447228.9
kerosene 53.762 1989.67 106968.6385 911372800
diesel 53.83 1981.67 106673.2961 908856483
Total 2265488011
Profitability Analysis
Total Income (Total Product Cost) 2265488011
Gross profit 143756300.2
30% income tax 43126890.06
3% surcharge 1293806.702
Net Profit 99335603.43
Rate of return 38.53167206
Rate of return after taxes 26.62538539
Payback Period (year) 3.75581418