A well-researched proper budget is required for any new sanitaryware factory to sustain market competition and the financial viability of the project. The following factors need to be considered to get an accurate new sanitaryware factory investment required for erection.
Automation Level:
- Many people prefer automation due to the challenges related to relying on manual labor. It is important to bring automation to a level that can reduce production costs as well as improve quality.
- In the sanitaryware industry, the cost of automation is very high—almost three times that of manual. Automation is recommended when the production capacity is very high (above 5000 pcs per day).
- Automation also requires operators with skill to operate machines. Semi-automation provides a better investment option for the current sanitaryware industry.
- Considering semi-automation and gradually incorporating more automation will help to understand better return on investment.
- If it’s a labor-intensive location, consider full manual production to reduce initial cost and cost of production.
- High levels of automation are recommended primarily in areas where there is a scarcity of labor and where the cost of energy is low.
Expansion Requirement:
- During the planning stage, always consider the future expansion requirement of the sanitaryware factory.
- Ensure that you have sufficient space for equipment and machinery in the plant layout for future expansion.
- Plan equipment capacity required based on the future plan; always have a minimum of 2 sets of machinery to allocate the total capacity of the factory to reduce breakdown effects on the production.
- Plan a sample/trial production line with equipment and machinery in the slip, glaze & casting departments.
Kiln Requirement:
- Based on the planned capacity of the factory plan for the kiln.
- If the planned capacity is less than 600 pieces per day, plan only for a shuttle kiln.
- If the planned capacity or the future capacity is more than 2000 pieces, first install a shuttle kiln and then go for a tunnel kiln. This will help to stabilize the production in the first year.
- Only proceed with a tunnel kiln if you anticipate having a stable production capacity for it. But this plan only helps reduce investment costs. In the long run, having a shuttle kiln always helps when suddenly downsizing production.
- I would suggest going for a shuttle kiln if you have investment; all reputed sanitaryware brands have both kilns to manage sanitaryware production process.
Regulatory Compliance Machineries:
- There are some machines required to meet government regulatory compliance.
- The air leak test machine is used to perform leak tests on toilets.
- The trap glaze machine is used for glazing the trapway area of the water closet.
- The rim glaze gun is used for spraying glaze under the rim of the water closet.
- Above are some of the examples of having proper machines to produce products that meet the market requirement.
Raw Materials Processing:
- When creating an investment plan, it’s important to consider multiple options for raw material processing units. This approach can help reduce environmental impact. Here are a few options:
- The first option is using a pitcher machine to crush and reuse rejected products from the process as raw material. This method promotes recycling within the production cycle, reducing waste and the need for new raw materials.
- The second option involves using a sludge kiln to fire the sludge and remove organic impurities. The fired sludge can then be reused as a raw material in the body of the products. This process not only minimizes waste but also ensures that the materials are purified and suitable for reuse in production.
Turnkey Company or In-House Team:
- There are two options for the erection of a sanitaryware factory. One is to give the project to a turnkey company or hire and use an in-house technical team. Both options have their advantages and disadvantages. Here is a comparison table.
| Turnkey Company | In-house Team |
|---|---|
| The project can be started and completed much faster. | It takes time to plan, find suppliers, and finish the erection. |
| One company to Handle From planning to execution. | The in-house team needs to have a ceramic technician as well as electrical & mechanical technicians. |
| Modifying the plan in the middle is difficult. | Management will have full control over the project customization. |
| The cost of investment will be high, as all the machinery and equipment will have an extra margin, as they are procured from other companies. | Can save up to 30% of the investment by procuring the machinery directly using the in-house team. |
| Responsible only until the project is handed over. | The in-house team will have the responsibility to bring quality production as well as maintain the standards. |
It’s good to have an in-house team, and sourcing part of the project from companies will have a great combination factor for investment as well as factory efficiency.
Quality Control System:
- Investing in good infrastructure for a quality control system and defect analyzing system will go a long way in the sanitaryware factory.
- The cost of production completely depends on the defect reduction, so investing to understand the defect and severity is vital.
- Invest in software and a touch screen defect recording system.
- If required, plan to invest in the barcode tracking system; it completely depends on the location and culture of the factory.
Conclusion:
While planning and budgeting for new sanitaryware factory investment, always consider the above points for the long-term goal of achieving low cost of production with high-quality standard products. A factory can survive in the long term only if it achieves both the goals of high quality and low cost products. Therefore, allocate your budget strategically to achieve these goals.
You can contact us for technical consulting at info@ceramicninja.com or WhatsApp/call +91-9500693318. Also look at how to start sanitaryware manufacturing factory.
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