Cost-Benefit Analysis of AN-Free-Explosives

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The purpose of a business is to create wealth. The business grows when wealth is created through the introduction of technologically superior eco-friendly new products. Some such products in the field of “Explosives for Rock Blasting” or ERB are products either devoid of ammonium nitrate or reduced ammonium nitrate. We have discussed earlier these products in the names of NoNEx, LoNEx, and TANFO.

Business finally boils down to numbers, that is, the bottom line of the balance Sheet – that is Profit after Tax or PAT.

The present per ton landed cost of Ammonium Nitrate in India is about Rs.88000 or USD 1128.

The present per ton cost of the AN-Free-Oxidizer (AFO) is Rs.40000 or USD 513.

Say your present formulation contains 55% AN.

ð  The Cost per ton on account of oxidizer = Rs, 48400 or USD 621   …(i)

Now, you introduce 10% of AN with the AN-Free-Oxidizer (AFO).

ð  Then Cost per ton on account of oxidizer is = Rs.43600 or USD 559             …(ii)

COMPARE the values in (i) and (ii), and you will see that the savings per ton of explosives are Rs. 4800 or USD 61.

SAY you manufacture 10000 tons of explosives in a year.

THEN your annual savings will be Rs. 48 million Rs. or 0.61 million USD.

Does it not sound promising and alluring for the business?


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