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1. 1
PARTICLE BOARD
CONTENTS
SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION
SECTION II PRODUCT APPLICATIONS
SECTION III INDIAN MANUFACTURERS
SECTION IV IMPORT/EXPORT LEVEL
SECTION V PRICE DETAILS
SECTION VI INDIAN DEMAND
SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS
SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY
AND AVAILABILITY
SECTION IX DISCUSSIONS ON ECONOMIC CAPACITY,
PROJECT COST AND PROFITABILITY PROJECTIONS
SECTION X SWOT ANALYSIS
SECTION XI FACTORS INFLUENCING THE POSITION FOR
A NEW INDUSTRY AND RECOMMENDATIONS

2. 2
SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATION
Source
Particle boards are produced from the agricultural wastes such as rice husk, jute sticks,
waste wood (non-commercial wood waste), sugarcane wastes.
Particle boards can also be made fire resistant by certain chemical treatment.
Properties
Particle boards have many desirable properties such as high density, high surface hardness,
abrasion resistance, high durability etc.
Size
Particle boards are made of different thickness such as 12 mm, 19 mm, and 25mm and
sizes.

3. 3
SECTION - II
PRODUCT APPLICATIONS
Areas of application
* Show cases,
* Partitions,
* Fridge tops,
* Table tops,
* Sewing machine covers,
* Window-door panels

4. 4
SECTION - III
INDIAN MANUFACTURERS
A large number of cottage units are in operation producing Particle board in small and
unorganised sector.
There are reported to be more than one hundred units operating at small scale sectors
producing particle board in the country.
* The Bakelite Hylam Ltd.,Andhra Pradesh
* N.C.L. Industries Ltd.,Andhra Pradesh
* Novopan Industries Ltd., Andhra Pradesh
* Hans Polyurethanes Limited,Ahmedabnad
* Colour-Chem Limited, Mumbai
* Ecoboard Industries Ltd.Pune
(Formerly known as Western Bio Systems Ltd.,)

5. 5
SECTION - IV
IMPORT/EXPORT LEVEL
Port bulletins were carefully scrutinised
No import/exports could be seen

6. 6
SECTION- V
PRICE DETAILS
Present price level for Particle board
12 mm thick
19 mm thick
25 mm thick
Rs.200 per sq.m
Rs.280 per sq.m.
Rs.350 per sq.m
Taxes and duties : Extra as applicable

7. 7
SECTION - VI
INDIAN DEMAND
The particle board are alternative to solid wood and ply-wood in various applications.
Particle boards made of cheap raw materials are also used as sealing tiles.
Particle boards can be used in the construction industry, as partition walls, panel boards etc.
Housing Sector
Hotel and entertainment
Commercial buildings like theaters
Growth rate in demand Around 6 to 7% per annum
Indian demand for
Particle board
Around 7.5 million sq.m. per
annum

8. 8
SECTION - VII
BROAD OUTLINE OF MANUFACTURING PROCESS
Particle boards are produced largely from agro waste materials, such as sugarcane waste,
jute waste etc.
Such agro waste materials are digested in caustic solution and subjected to vigorous
agitation.
The digested pulp is subjected to pressing in hydraulic press or manual pressing in the case
of tiny units.
The pressed material of specific size and shape is subjected to drying in tunnel type of
dryers or some times dried by solar heating.
Source of technology
* Central Building Research Institute
(Council of Scientific and Industrial Research)
Roorkee
Major plant and machinery suppliers
Name of the equipment Name of the suppliers
Hydraulic truck Deccan Mechanical and Chemical Industries Ltd.,
Flat No.4, A-Wing,
7th Floor, Parsn Manere
602, Mound Road,
Chennai-600 006
Iyappan Engineering Industries Pvt. Ltd.
Chennai-600 098
Digestor Chemitherm Plants & Systems P. Ltd.,
30, Anandha Street
Alwarpet, Chennai-600 018
Texel Fabricators Pvt. Ltd.,
335, Sidco Industrial Estate,
Ambattur, Chennai-600 098, Tamil Nadu
Boiler Firetech Boilers Pvt. Ltd.
No.211, 2nd Cross,
38th Main, B.T.M. Layout
2nd Stage, Bangalore-68

9. 9
Dryer The Anup Engineering Ltd.,
Behind 66 KV Electric Sub Station
Odhav Road, Ahmedabad-382 415
ATRE Thermal Products Pvt. Ltd.,
Pushpa Heights, 1st Floor,
Bibwewadi Corner, Pune-411 037

10. 10
SECTION - VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY
The raw materials can be sugarcane waste or jute waste etc.
These agricultural residues are not fully utilised at present, hence such raw materials are
available at cheaper prices.
The Indian particle board industries use the recycled waste agro raw -material such as cotton
rags in the form of tailor cutting, hosiery cutting and small quantities of waste paper. Other
agro fibres like jute, straw and banana are also used to blend with the primary fibres for
mottling effect.

11. 11
SECTION IX
DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND
PROFITBAILITY PROJECTIONS
Economic Capacity :: 30000 sq.m. per annum
Project Cost :: Rs. 80 lakhs
Assessment of project cost
1. Land
S.No. Description Cost
Rs.in lakhs
1.1 Cost of land of 0.5 acre at Rs.5.5 lakh per acre 2.75
1.2 Cost of levelling, laying internal roads/fencing and
compound wall
0.28
Subtotal 3.03
2. Building
S.No. Description Cost
Rs.in lakhs
2.1 Factory building of area 210 sq.m. at Rs.3200/sq.m. 6.72
2.2 Non-factory building of area 60 sq.m.at Rs.4500/sq.m. 2.7
Subtotal 9.42
3. Cost of Plant & Machinery
S.No. Description Cost
Rs.in lakhs
3.1 Cost of basic plant and machinery 23
3.2 Instrumentation and control 1.73
3.3 Pipelines and valves 2.3
3.4 Structurals for erection 1.15
Subtotal 28.18
3.5 Octroi, excise duty, sales tax, etc.at 12% 3.38
3.6 Packaging and insurance charges (2%) 0.56
3.7 Transportation charges (2%) 0.56
3.8 Machinery stores and spares (2%) 0.56
3.9 Foundation charges (2%) 0.56
3.10 Installation charges (2%) 0.56
Total cost of plant and Machinery 34.57
4. Technical know-how fees Rs.2.00 lakhs

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5. Miscellaneous fixed assets
S.No. Description Cost
Rs.in lakhs
5.1. Electrification 3
5.2. Steam boiler and auxillaries 1.5
5.3. Water storage tank, borewell etc. 0.60
5.4. Fuel storage tank 0.50
5.5. Laboratory equipment 0.50
5.6. Office machinery & equipment 0.80
5.7. Material handling equipment, packaging machinery,
weigh balance, etc.
0.6
5.8. Diesel generator 4.4
5.9. Effluent treatment 1.3
Total 13.2
6. Preliminary & Pre-operative expenses:
S.No. Description Cost
Rs.in lakhs
6.1. Preliminary expenses 0.80
6.2. Pre-operative expenses:-
6.2.1 Establishment 0.80
6.2.2 Rent rates and taxes 0.80
6.2.3 Travelling expenses 0.70
6.2.4 Interest and commitment charges on borrowings 3.50
6.2.5 Insurance during construction period 1.40
6.2.6 Other preoperative expenses and deposits -
6.2.7 Interest on deferred payment -
Total 8.00
7. Provision for contingency Rs.4.32 lakhs
8. Working capital margin Rs. 5.81 lakhs
9. Total project cost Rs.80 lakhs
10. Means of Finance
Promoter's contribution Rs.32 lakhs
Term loan from financing institutions Rs.48 lakhs
Total project cost Rs.80 lakhs
11. Financial statements

13. 13
Cost of production
A Variable cost Rs. in lakhs
Raw material and utilities 29.72
Spares and maintenance 2.06
Selling expenses 4.15
Total variable cost (A) 35.93
B Fixed cost
Salaries and wages 9
Interest on term loan and working capital loan 11.79
Depreciation 4.88
Administrative expenses 2.49
Total fixed cost (B) 28.16
C. Total cost of production (A+B) 64.09
D. Selling price per kg. (in Rupees)
12 mmthick
19 mm thick
25 mm thick
Rs.200 per msq.m
Rs.280 per sq.m.
Rs.350 per sq.m
E. Annual sales turnover 83
F. Net profit before tax (E-C) 18.91
G. Breakeven point in % 60%

14. 14
SECTION X
SWOT ANALYSIS
Strength Ready availability of raw material
Weakness Need for quality improvement to effectively
substitute conventional product
Opportunity Eco friendly product
Threat Uncompetitive price level

15. 15
SECTION XI
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND
RECOMMENDATION
Particle board is important eco friendly product that can be used in construction activity.
However, there are a number of other substituting products used in construction sector.
The use pattern of Particle board is bound to be selective and therefore careful demand supply
scenario in the local regions should be made in taking investment decision
The relevant experience and background of the project promoter is of vital importance in such project.