ABS Injection Moulded Items - Guntur districtguntur.nic.in/statistics/plastic.pdf · ABS INJECTION...

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1 ABS INJECTION MOULDED ITEMS INTRODUCTION ABS is a copolymer of A crylonitrile, B utadiene, and S tyrene. ABS plastics generally possess medium strength and performance and medium cost; ABS is often used as the cost and performance dividing line between standard plastics (PVC, polyethylene, polystyrene, etc.) and engineering plastics (acrylic, nylon, acetal, etc.). ABS polymers can be given a range of properties, depending on the ratio of the monomeric constituents and the molecular level connectivity. Typically, a styrene-acrylonitrile glassy phase is toughened by an amorphous butadiene/butadiene-acrylonitrile rubber phase. USES AND APPLICATION ABS can be easily converted into useful parts by a number of processing techniques, namely injection and blow moulding, extrusion, thermoforming etc. ABS is widely used for manufacturing of refrigerator parts, pipe fittings, safety helmets, water pump impellers, fan and regulator parts, push buttons, novelty items etc. MARKET POTENTIAL Following are the products which can be injection moulded from various grades of ABS resins. S.no Grades Applications 1. Absolac 100 (High impact Helmets, Furniture, Auto- grade)motive Components, industrial Components etc. 2. Absolac 200 (Electro- Decorative Components for plating grade) Automotive, TV, Radio and Appliances, Plumbing & Bathroom fixtures, Light reflectors etc. 3. Absolac 300 (High Flow moulded luggage, Appliance grade) housing, Telephone set, Calculator body.

Transcript of ABS Injection Moulded Items - Guntur districtguntur.nic.in/statistics/plastic.pdf · ABS INJECTION...

Page 1: ABS Injection Moulded Items - Guntur districtguntur.nic.in/statistics/plastic.pdf · ABS INJECTION MOULDED ITEMS INTRODUCTION ABS is a copolymer of Acrylonitrile, Butadiene, and Styrene.

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ABS INJECTION MOULDED ITEMS INTRODUCTION

ABS is a copolymer of Acrylonitrile, Butadiene, and Styrene. ABS plastics

generally possess medium strength and performance and medium cost; ABS is

often used as the cost and performance dividing line between standard plastics

(PVC, polyethylene, polystyrene, etc.) and engineering plastics (acrylic, nylon,

acetal, etc.). ABS polymers can be given a range of properties, depending on

the ratio of the monomeric constituents and the molecular level connectivity.

Typically, a styrene-acrylonitrile glassy phase is toughened by an amorphous

butadiene/butadiene-acrylonitrile rubber phase.

USES AND APPLICATION

ABS can be easily converted into useful parts by a number of processing

techniques, namely injection and blow moulding, extrusion, thermoforming etc.

ABS is widely used for manufacturing of refrigerator parts, pipe fittings, safety

helmets, water pump impellers, fan and regulator parts, push buttons, novelty

items etc.

MARKET POTENTIAL

Following are the products which can be injection moulded from various grades

of ABS resins.

S.no Grades Applications

1. Absolac 100

(High impact Helmets, Furniture, Auto- grade)motive

Components, industrial Components etc.

2. Absolac 200

(Electro- Decorative Components for plating grade)

Automotive, TV, Radio and Appliances, Plumbing &

Bathroom fixtures, Light reflectors etc.

3. Absolac 300

(High Flow moulded luggage, Appliance grade)

housing, Telephone set,

Calculator body.

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The Indian Plastic Industry has taken great strides in its quest for success. The

last few decades have seen it rise to the position of a leading force in the country

with a sizable base. The industry itself is growing at a fast pace and the per

capita consumption of plastics in the country has increased manifold as

compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities.

It has helped substitute and save scarce natural resources. It is an inseparable

part of our daily life.

Constant development in polymer technology, processing machinery, know how

and cost effective production is fast replacing plastics in every segment from its

conventional materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4

million tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and

china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

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2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry

Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go

up to 7.7 kg by the year 2007. While it is true that our consumption is below the

world average of 17 kg, per capita figures should be viewed in the context of our

large population; sometimes per capita figures are useful only for trend analysis

and not in absolute terms.

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ABS is the largest-consumed engineering plastic in India, with the annual growth

rate in consumption is reckoned at 10%. "ABS' manufacturing capacity in India is

adequate to meet the local demand . Only such resins which are not

manufactured in India are imported. In any case, it does not make sense to

import a resin that's available in India. Imports will be viable only if the resin is

imported for making a product meant for export. Moreover, coloured resins in

small batches, as generally required by Indian industry will not be attractive for

overseas resin manufactures.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

ABS Plastics

injection

moulded

products

40 kgs 16 640 kgs 192 MTs

PLANT AND MACHINERY

The following items of plant and machinery are required for the project.

Items Qty Nos Value Rs. lakhs

Injection Moulding Machine (per shot 450 gms)

including electricals.

1 16.00

Scrap grinder 0.70

Dry colour Mixer 1 0.55

Electric oven (2' x 2' x 1.5') 1 0.50

Mould Lifting equipment 1 0.50

Weighing Scale 1 0.25

Water cooling arrangements 1.00

Sets of Moulds 4 3.50

Total 23.00

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MANUFACTURING PROCESS

The raw material is fed from the hopper of the moulding machine and heated in

the cylinder. The melt is stored in front of the screw in a small adjustable

chamber. The predetermined volume of plastic is injected into a closed mould at

a very high pressure by forward motion of the screw. After a few seconds, the

solidification starts in the mould (which is constantly cooled by cold water

circulation). The injected material is kept under pressure for sometime to ensure

adequate filling of the mould and to prevent back flow of the material.

Further time is allowed to elapse for cooling and the article is ejected out from

the mould when it becomes rigid; by air, stream or by mechanical ejectors.

RAW MATERIALS

The raw material required for the production at full capacity is given below

Production 192.00 MTS

Qty-MTs Rate/MT Rs. Value Rs lakhs

ABS Resin 201.6 85000 171.36

Master batches & colour 6.05 100000 6.05

TOTAL 177.41

Packing

materials

192 2000 3.84

LOCATION LAND AND BUILDING

The infrastructural facilities required for the project by way of land and building

are the following.

2000

10000

Built up area-Sq.ft

Rent p.m.-Rs per .5 per sq.ft

Advance-10 months. Rs 100000

UTILITIES

The utilities required for the project are the following

Three phase- KW 52.00

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Power charges Rs. lakhs p.a 11.86

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

The manpower requirement for the project is given below

Monthly wages Total

Manager 1 10000 10000

Supervisor 1 8000 8000

Skilled 6 5000 30000

Unskilled 6 3000 18000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 79000

Add benefits 20% 15800

Total per month 94800

TOTAL PER ANNUM-Rs. lakhs 11.38

SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalized the project can be implemented in

three months time.

COST OF PRODUCTION AND PROFITABILTY ASSUMPTIONS

A cost and profitability statement projected for the first 5 years of operations is

given in Annexure. The profitability is based on the following assumptions.

Assumptions

Installed capacity 192 MTs of ABS moulded plastics injection

moulded items per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

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Selling price Rs.120.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.11.86 lakhs per annum at 100%

Wages and salaries Rs. 11.38 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

increase

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS 1. Textair Plastics & Hydraulics, 18-Ambal Nagar Main Road,

Ekkattuthangal-600 097.

2. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

3. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka,

Andheri East, Mumbai – 500 072.

4. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher,

Ahmedabad – 382415,

5. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74,

Faridabad – 121005.

6. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate,

Phase 1 Valva, Ahmedabad – 382445

7. HMT International Ltd, 59 HMt Bhavan Bellari Road, Bangalore – 560 032.

8. J.B. Industries, 7 / 36 PH-2 TNHB, Muthamil Nagar- 600 118.

9. Polymechplast Machines LTd, Gold Coin House, 775, G.I.D.C Makarpura

Vadodara – 390 010.

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LIST OF RAW MATERIAL SUPPLIERS

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641606.

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079.

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastICS, 57/2, Thirupalli Street – 600 079.

5. ABS Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

6. Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

7. Sankar Mercantile Agencies, 43 Vysarpadi Industrial Estate,

Chennai – 600 039.

8. Indian Petrochemical Corporation. 89 Santhome High Road,

Chenai – 600 028.

9. PP Industries, 91 Stranhas Road, Ooteri,Chennai – 600 012.

10. Haldie Petrochemicals, 41 UN Road, T.nagar, Chennai 600 017.

11. V.B. SREE GanpathyColourCompany, 63, Devaraja Mudali Street, 2nd Floor,

Chennai – 600 003.

12. Prayag Polytech Pvt. LTd. 2468, Prayag House, ?Nalwa Street, Pahar Ganj,

New Delhi – 110 055.

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 1.00

Plant & Machinery 23.00

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 3.46

29.96

2. MEANS OF FINANCE

Capital 12.71

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Term Loan 17.25

29.96

Term Loan is assumed at 75% of the Machinery value.

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs.lakhs]

Years 1 2 3 4 5

Installed Capacity-MTs 192 192 192 192 192

Utilisation 60% 70% 80% 80% 80%

Production/Sales-MTs 115 134 154 154 154

Selling Price per MT-Rs. 1.20 lakhs

Sales Value (Rs. lakhs) 138.00 160.80

184.80 184.80

184.80

Raw Materials 106.44 124.19 141.93 141.93 141.93

Packing Materials 2.30 2.69 3.07 3.07 3.07

Power 7.11 8.30 9.48 9.48 9.48

Wages & Salaries 11.38 11.94 12.54 13.17 13.83

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 3.45 2.93 2.49 2.12 1.80

Cost of

Production

131.28 150.71 170.24 170.57 170.99

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 1.90 1.66 1.19 0.71 0.24

Interest on Working Capital 1.42 1.42 1.42 1.42 1.42

Total 138.20 157.57 176.82 176.87 177.03

Profit Before Tax

-0.20 3.23

7.98 7.93

7.77

Provision for tax 0.00 1.09 2.69 2.67 2.62

Profit After Tax -0.20 2.14 5.29 5.26 5.15

Add: Depreciation 3.45 2.93 2.49 2.12 1.80

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Cash Accruals 3.25 5.07 7.78 7.38 6.95

Repayment of Term loan 0.00 4.31

4.31 4.31

4.32

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 4.44 25% 1.11 3.33

Consumables 2.00 0.38 25% 0.10 0.28

Finished goods 0.50 5.47 25% 1.37 4.10

Debtors 0.50 5.75 10% 0.58 5.17

Expenses 1.00 0.30 100% 0.30 0.00

16.34 3.46 12.88

5. PROFITABILITY RATIOS BASED ON 80%

UTILISATION

Profit after Tax = 5.29

Sales 184.80

3%

Profit before Interest and Tax 10.59

Total Investment

=

42.84

25%

Profit after Tax 5.29

Promoters Capital

=

12.71

42%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 12.54

Repairs & Maintenance 0.73

Depreciation 2.49

Admin. & General expenses 3.97

Interest on TL 1.19

20.92

Profit Before Tax (P) 7.98

BEL = FC x 100 = 20.92 x 80 x 100

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FC +P 28.90 100

58% of installed capacity

or Production volume

111.36 MTs or Sales

value Rs.133.63 lacs

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ACRYLIC BUTTONS

INTRODUCTION

Plastic buttons are manufactured by basically two processes by 1) cutting acrylic

and polyester sheets by die punching process and 2) by processing urea

compression moulding. In the given profile details are given for setting up a

project of acrylic sheets by dye punching machinery.

MARKET

The market for acrylic buttons are increasing due to increase in consumption of

garments used for domestic use and for exports. The consumption of both these

sectors have registered significant growth in the past and it will continue to show

good growth in future years.

The Indian Plastic Industry has taken great strides in its quest for success. The

last few decades have seen it rise to the position of a leading force in the country

with a sizable base. The industry itself is growing at a fast pace and the per

capita consumption of plastics in the country has increased manifold as

compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities.

It has helped substitute and save scarce natural resources. It is an inseparable

part of our daily life.

Constant developments in polymer technology, processing machinery, know how

and cost effective production is fast replacing plastics in every segment from its

conventional materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4

million tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and

china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

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Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

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Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source: Task Force on Petrochemical / Industry

Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go

up to 7.7 kg by the year 2007. While it is true that our consumption is below the

world average of 17 kg, per capita figures should be viewed in the context of our

large population; sometimes per capita figures are useful only for trend analysis

and not in absolute terms.

INSTALLED CAPACITY

The installed capacity of proposed unit is 400 Gross of Buttons per day on single

shift basis. The annual installed capacity works out to 120000 Gross buttons.

One gross is equal to 12 Dozens (144 Nos)

QUALITY SPECIFICATIONS There is no Indian Standard Specification for Acrylic Buttons, but there is

IS : 1461 - 1966 (Plastic buttons, thermosetting) and IS : 8543 (Part XIII/Sec.I) -

1977 for methods of testing thermosetting plastic buttons.

PLANT AND MACHINERY

The following items of plant and machinery are required for the project.

Items Qty - Nos Value Rs.

Sheet cutting machine with 0.5 HP machine 1 40000

Drilling machine 1 HP motor 1 18000

Hole Maker ( drilling) 1 12000

Grinding machine 1 10000

Other equipments & hand operated & hand operated tools 10000

Total 90000

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MANUFACTURING PROCESS

The acrylic sheets are purchased form the market and cut according to the sizes

by using die punches. Grinding machines according to the desired shapes and

design does final finishing. Designs are embossed over the buttons and then

polishing is done. The buttons are packed in boxes and dispatched.

RAW MATERIALS

The raw material required for the production at full capacity is given below

For Quantity -Gross 120000

Qty-Nos Rate-Rs Value

Acrylic sheets 26668 22.50 600030

Total 600030

TOTAL for 120000 Rs. lakhs 6.00

Packing material cost 0.90

LOCATION LAND AND BUILDING

The infrastructural facilities required for the project by way of land and building

are the following.

Built up area-Sq.ft 500

Rent p.m.-Rs 1000

Advance-10 months. Rs 10000

UTILITIES

Power & water

Three phase KW 3.00

Power charges Rs. lakhs p.a 0.34

Water-For process-Litres per day 0

For human consumption ltr/day 200

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MANPOWER

The manpower requirement for the project is given below

Nos Monthly wages Total

Supervisor 1 3000 3000

Skilled 3 2000 6000

Helpers 3 1500 4500

sub total 13500

Add benefits 20% 2700

Total per month 16200

TOTAL PER ANNUM-Rs. lakhs 1.94

SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalized the project can be implemented in

three months time.

COST OF PRODUCTION AND PROFITABILTY.

Assumptions

Installed capacity 120000 Gross Acrylic sheet buttons per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.10.25 per Gross.

Raw materials As per the details given above

Packing materials Rs.0.90 lakh per annum.

Power Rs.0.34 lakh per annum at 100%

Wages and salaries Rs. 1.94 lakhs with increase 2% every year.(as

per projections)

Repairs and Maintenance Rs.0.06 lakh per annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.4000 per month with 5% annual increase

Interest on Term loan 10% per annum

Interest on working capital 10 % per annum

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Income tax 33.66 % on profits

MACHINERY SUPPLIERS 1. Surjeet Engineering, 72, Vishwakarma Park, Laxmi Nagra, New Delhi 110 092

2. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

3. Europack Machines India Pvt Lts., 52, Bindal Industrial Estate, Sakinaka,

Andhari East, Mumbai – 500 072.

4. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher,

Ahmedabad – 382415,

5. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74,

Faridabad – 121005.

6. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase

1 Valva, Ahmedabad – 382445

7. HMT International Ltd, 59, HMT Bhavan, Bellary Road, Bangalore – 560032.

RAW MATERIAL SUPPLIERS 1. Maharaja Marketing, 57 Elis Road, Maricha Complex, Chennai 600 002

2. Madras Industrial Polymers & packings, 648, 1 st Floor, MTH Road

Ambattur,Chennai 600 050

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs] Land & Building (Advance) 0.10 Plant & Machinery 0.90 Other Misc. assets 0.03 Pre-Operative expenses 0.05 Margin for WC 0.20 1.28

2. MEANS OF FINANCE

Capital 0.60 Term Loan 0.68 1.28 Term Loan amount is assumed at 75% of the value of Machinery

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3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs. lakhs] Years 1 2 3 4 5 Installed Capacity Gross 120000 120000 120000 120000 120000 Utilisation 60% 70% 80% 80% 80% Production/Sales Gross 72000 84000 96000 96000 96000 Selling Price Rs.10.25 per gross Sales Value (Rs. lakhs) 7.38 8.61 9.84 9.84 9.84 Raw Materials 3.60 4.20 4.80 4.80 4.80 Packing Materials

0.54 0.63 0.72 0.72 0.72

Power 0.21 0.24 0.27 0.27 0.27 Wages & Salaries

1.94 1.98 2.02 2.06 2.10

Repairs & Maintenance 0.06 0.07 0.08 0.09 0.10 Depreciation 0.14 0.11 0.10 0.08 0.07 Cost of Production

6.48 7.24 7.99 8.03 8.07

Selling, Admin, & General exp 0.48 0.50 0.53 0.56 0.59 Interest on Term Loan 0.07 0.06 0.04 0.04 0.04 Interest on Working Capital 0.00 0.00 0.00 0.00 0.00 Total 7.03 7.80 8.56 8.63 8.70 Profit Before Tax 0.35 0.81 1.28 1.21 1.14 Provision for tax 0.00 0.00 0.43 0.41 0.38 Profit After Tax 0.35 0.81 0.85 0.80 0.76 Add: Depreciation

0.14 0.11 0.10 0.08 0.07

Cash Accruals 0.48 0.93 0.94 0.88 0.83 Repayment of Term Loan 0.00 0.17 0.17 0.17 0.17

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4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 0.15 100% 0.15 0.00 Expenses 1.00 0.05 100% 0.05 0.00 0.20 0.20 0.00

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 0.85 Sales

= 9.84

9%

Profit before Interest and Tax 1.32 Total Investment

= 1.28

103%

Profit after Tax 0.85 Promoters Capital

= 0.60

141%

6. BREAK EVEN LEVEL Fixed Cost (FC): [Rs. lakhs] Wages & Salaries

2.02

Repairs & Maintenance 0.08 Depreciation 0.10 Admin. & General expenses 0.53 Interest on TL 0.04 2.77 Profit Before Tax (P) 1.28

FC x 100

2.77 80 BEL =

FC +P

=

4.05

x

100

x 100

55% of installed capacity or Production volume

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66000 kgs or Sales value Rs.6.77 lacs

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1

AUTOMATIC INJECTION MOULDED INDUSTRIAL COMPONENTS

INTRODUCTION

Injection moulded components are widely used as automobile parts and accessories,

computer peripherals, telecommunication components, T.V. cabinets, gears, cones and

textile industry components, housings and parts in electronics and electrical industry.

Thermoplastic materials are being converted into injection moulded engineering

components.

Automatic injection moulding machines are preferred where precision moulding

requirements are high; where high production rate with minimum cycle time is required and

where the weight of the component injection moulded generally exceeds 150 gms, which

could not be injection moulded in semi-automatic machines.

MARKET

Indian Petrochemical industry is one of the fastest growing sectors of the economy. The

petrochemical sector has an average gowth at a rate of 13% per annum, which is more than

double the growth of GDP. The usage of polymers for injection moulding and other

components used in engineering plastics is bound to increase with the increase in

production of automobile vehicles, machinery and other electrical machinery and consumer

durables.

The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of plastics

in the country has increased manifold as compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our daily

life.

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2

Constant development in polymer technology, processing machinery, know how and cost

effective production is fast replacing plastics in every segment from its conventional

materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

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3

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermosets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go up to 7.7

kg by the year 2007. While it is true that our consumption is below the world average of 17

kg, per capita figures should be viewed in the context of our large population; sometimes per

capita figures are useful only for trend analysis and not in absolute terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of

working

hours

per day

Capacity

per day

Capacity per

annum

300 days per

annum

Automatic injection moulded

industrial components

50 kgs 8 400 kgs 120 MT

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4

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. Automatic injection moulding 1 15,50,000

machine with accessories

(400 gms, screw type)

2. Scrap Grinders (cap. 40 Kg/hour) 1 1,40,000

3. Dry colour Mixer 1 1,20,000

4. Mould lifting equipment (2 MT cap.) 1 50,000

5. Water cooling arrangement 52,000

6. Weighing scale 1 16,000

7. Moulds 4 sets 3,72,000

Total 23,00,000

MANAFACTURING PROCESS

The plasticised and homogenised thermoplastic material is injected into a locked (clamped)

mould with sufficient injection speed and pressure. After the melt is cooled in the mould, it is

opened to remove the moulded articles. This is a cyclic process. Automatic injection

moulding machine is the basic machinery involved in this project.

RAW MATERIALS

For MTs 120

Qty-MTs Rate/MT Value

Rs lakhs

LDPE,HDPE 126 60000 75.60

Master batches & colour 120 2000 2.40

TOTAL 78.00

Packing materials 120.00 1000.00 1.20

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5

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2000

Rent p.m.-Rs 5 per sq.ft 10000

Advance-10 months. Rs 100000

UTILITIES

Three phase- KW 40.00

Power charges Rs.lakhs p.a 4.56

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 2 5000 10000

Unskilled 2 3000 6000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 37000

Add benefits 20% 7400

Total per month 44400

TOTAL PER ANNUM-Rs. lakhs 5.33

SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalised the project can be implemented in three months

time.

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6

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 120 MT of different moulded products per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.100.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.4.56 lakhs per annum at 100%

Wages and salaries Rs. 5.33 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual increase

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS 1. Textair Plastics & Hydraulics, 18-Ambal Nagar Main Road, Ekkattuthangal-97.

2. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

3. Europack Machines India Pvt Lts, 52, Bindal Industrial Estate, Sakinaka, Andhari

East, Mumbai – 500 072.

4. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher,

Ahmedabad – 382415,

5. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad – 121005.

6. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1

Valva, Ahmedabad – 382445

7. HMT International Ltd, 59, HMT Bhavan, Bellary Road, Bangalore – 560032.

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7

8. J.B. Industries, 7 / 36 PH-2 TNHB, Muthamil Nagar- 118.

9. Klokner Windor India Ltd, 2-J Mound Road, Teynampet-18,

LIST OF RAW MATERIAL SUPPLIERS

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641006,

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079,

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastIcs, 57/2, Thirupalli Street – 79,

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

5 Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 1.00

Plant & Machinery 23.00

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 1.74

28.24

2. MEANS OF FINANCE

Capital 10.99

Term Loan 17.25

28.24

Term Loan is assumed at 75% of the Machinery value.

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

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8

Installed Capacity-MTs 120 120 120 120 120

Utilisation 60% 70% 80% 80% 80%

Production/Sales-MTs 72 84 96 96 96

Selling Price per MT-Rs. 1 Lakh

Sales Value (Rs.lakhs) 72.00 84.00 96.00 96.00 96.00

Raw Materials 46.80 54.60 62.40 62.40 62.40

Packing Materials 0.72 0.84 0.96 0.96 0.96

Power 2.74 3.19 3.65 3.65 3.65

Wages & Salaries 5.33 5.59 5.87 6.16 6.47

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 3.45 2.93 2.49 2.12 1.80

Cost of Production 59.64 67.81 76.10 76.09 76.16

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 1.90 1.66 1.19 0.71 0.24

Interest on Working Capital 0.67 0.67 0.67 0.67 0.67

Total 65.81 73.92 81.93 81.64 81.45

Profit Before Tax

6.19 10.08 14.07 14.36 14.55

Provision for tax 2.08 3.39 4.74 4.83 4.90

Profit After Tax 4.11 6.69 9.33 9.53 9.65

Add: Depreciation 3.45 2.93 2.49 2.12 1.80

Cash Accruals 7.56 9.62 11.82 11.65 11.45

Repayment of Term loan

0.00 4.31 4.31 4.31 4.32

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 1.95 25% 0.49 1.46

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9

Consumables 2.00 0.12 25% 0.03 0.09

Finished goods 0.50 2.48 25% 0.62 1.86

Debtors 0.50 3.00 10% 0.30 2.70

Expenses 1.00 0.30 100% 0.30 0.00

7.85 1.74 6.11

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 9.33

Sales

=

96.00

10%

Profit before Interest and Tax 15.93

Total Investment

=

34.35

46%

Profit after Tax 9.33

Promoters Capital

=

10.99

85%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 5.87

Repairs & Maintenance 0.73

Depreciation 2.49

Admin. & General expenses 3.97

Interest on TL 1.19

14.25

Profit Before Tax (P) 14.07

FC x 100 14.25 80 BEL =

FC +P

=

28.32

x

100

x 100

40% of installed

capacity or

production volume

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10

48 MTs or Sales

value Rs.48 lacs

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1

BLOW MOULDED CONTAINERS

INTRODUCTION

Blow moulded containers are used to pack liquid items such as drinking water, edible

oils, toiletries, pharmaceuticals, pesticides etc. The blow-moulded containers have the

following advantages

1. Light in weight

2. Barrier characteristics against gas and vapour

3. Environmental resistance

4. Impact resistance

5. Burst strength

6. Clarity

7. Choice of colours

8. Printability

9. Non-corrosion & flexibility

There is a continuous growing demand for the containers from 200 ML to 2000 ML.

MARKET POTENTIAL

The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our

daily life.

Constant development in polymer technology, processing machinery, know how and

cost effective production is fast replacing plastics in every segment from its conventional

materials

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2

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

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3

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go up to

7.7 kg by the year 2007. While it is true that our consumption is below the world average

of 17 kg, per capita figures should be viewed in the context of our large population;

sometimes per capita figures are useful only for trend analysis and not in absolute

terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of

working

hours per

day

Capacity

per day

Capacity per

annum

300 days per

annum

Blow moulded

containers

20 kgs

8 160 Kg 48 MT

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4

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. 2 litres Blow moulding machine whole 10,50,000

with all controls, Air compressor unit

and cooling water pump etc.

2. Moulds dies & tools 1,65,000

3. Scrap grinder 1 95,000

4. Colour mixer 1 1,00,,000

5. Weighing Scale 1 35,000

6. Container screen printing device 1 1.20,000

Total 15,65,000

MANAFACTURING PROCESS

Plastic material in the form of granules is subjected to heat and pressure and an

extruded and the semi-molten plastic is extruded through the nozzle in the form of a

hollow tube known as PARISON. Adjustments are provided in the machine to vary the

wall thickness of the parison. Suitable parison is then inserted in a female mould and air

is blown into the parison to force it against the sides of the mould. The material is then

cooled before removal from the mould. The article thus obtained is trimmed to remove

the flashes.

RAW MATERIALS

For MTS 48

Qty-MTs Rate/MT Value

HDPE 31.20 58000 18.10

Miscellaneous plastic 10.80 60000 6.48

Master batches & colour 4.2 100000 4.20

TOTAL 28.78

Packing materials 48.00 1000 0.48

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5

LOCATION LAND AND BUILDING

Built up area-Sq.ft 1500

Rent p.m.-Rs per .5 per sq.ft 7500

Advance-10 months. Rs 75000

UTILITIES

POWER & WATER

Three phase- KW 30.00

Power charges Rs.lakhs p.a 3.42

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 7000 7000

Skilled 3 5000 15000

Unskilled 3 3000 9000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 44000

Add benefits 20% 8800

Total per month 52800

TOTAL PER ANNUM-Rs. lakhs 6.34

SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalised the project can be implemented in three

months time.

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6

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 48 MT of Blow moulded containers per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.120.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.3.42 lakh per annum at 100%

Wages and salaries Rs. 6.34 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

increase

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.20000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS

1. M/s Brimco Plastic Machinery Corpn., Plot 55, Govt. Kandivli Indl. Estate,

Kandivli (W),Bombay-400 067.

2. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

3. Europack Machines India Pvt Lts, 52, Bindal Industrial Estate, Sakinaka, Andharai

East, Mumbai- 500 072.

4. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher,

Ahmedabad – 382415,

5. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74,

Faridabad – 121005.

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7

7. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1

Valva, Ahmedabad – 382445

8. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore- 560032.

9. M/s Boolani Engineering Corpn. 402, Prabhadevi Indl. Estate, Veer Savarkar Road,

Bombay-400 025.

10. J.B. Industries, 7 / 36 PH-2 TNHB, Muthamil Nagar- 118.

RAW MATERIAL SUPPLIERS

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641006,

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079,

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastIcs, 57/2, Thirupalli Street – 79,

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

5 Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs.lakhs]

Land & Building (Advance) 0.75

Plant & Machinery 15.65

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 0.94

19.84

2. MEANS OF FINANCE

Capital 8.10

Term Loan 11.74

19.84

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8

Term Loan is assumed at 75% of the Machinery value.

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs.lakhs]

Years 1 2 3 4 5

Installed Capacity-MTs 48 48 48 48 48

Utilisation 60% 70% 80% 80% 80%

Production/Sales-MTs 29 34 38 38 38

Selling Price per MT-Rs. 1.20lakhs

Sales Value (Rs.lakhs) 34.80

40.80

45.60 45.60

45.60

Raw Materials 17.27 20.14 23.02 23.02 23.02

Packing Materials 0.29 0.34 0.38 0.38 0.38

Power 2.05 2.39 2.74 2.74 2.74

Wages & Salaries 6.34 6.65 6.98 7.33 7.70

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 2.35 2.00 1.70 1.44 1.23

Cost of Production 28.89 32.18 35.55 35.71 35.95

Selling, Admin, & General exp 2.40 2.52 2.65 2.78 2.92

Interest on Term Loan 1.29 1.13 0.81 0.49 0.16

Interest on Working Capital 0.31 0.31 0.31 0.31 0.31

Total 32.89 36.14 39.32 39.29 39.34

Profit Before Tax

1.91

4.66

6.28 6.31

6.26

Provision for tax 0.64 1.57 2.12 2.12 2.11

Profit After Tax 1.27 3.09 4.16 4.19 4.15

Add: Depreciation 2.35 2.00 1.70 1.44 1.23

Cash Accruals 3.61 5.09 5.86 5.63 5.38

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9

Repayment of Term loan 0.00 2.93 2.93 2.93 2.95

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 0.72 25% 0.18 0.54

Consumables 2.00 0.05 25% 0.01 0.04

Finished goods 0.50 1.20 25% 0.30 0.90

Debtors 0.50 1.45 10% 0.15 1.30

Expenses 1.00 0.20 100% 0.20 0.00

3.62 0.84 2.78

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 4.16

Sales

=

45.60

9%

Profit before Interest and Tax 7.40

Total Investment

=

22.62

33%

Profit after Tax 4.16

Promoters Capital

=

8.10

51%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 6.98

Repairs & Maintenance 0.73

Depreciation 1.70

Admin. & General expenses 2.65

Interest on TL 0.81

12.87

Profit Before Tax (P) 6.28

FC x 100 12.87 80 BEL =

FC +P

=

19.15

x

100

x 100

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10

54% of installed capacity

or Production volume

25.92 MTs or Sales

value Rs.31.10 lacs

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1

CO-EXTRUDED MULTILAYER FILMS

INTRODUCTION

Co-extruded films are manufactured for different applications. Three layer blown film

extrusion is process of simultaneously extruding in molten stage three polymers which

adhere to each other through a common die to form an integral film of unique strength

and properties.

MARKET

Some of the common applications of the co-extruded films are the following

1 LL/LD/LL Heavy duty bags

2 LL/HD/LL Industrial base food oil, baked confectionery, dry

vegetables, dry unit hydrogenated oil, lube oil

3 LL/HD/LL Industrial based food oil, baked confectionery, dry

vegetables, dry fruits,

4 LD/Scrap /LD Garbage bags

5 HD/LD/LD Industrial base food, baked confectionery, dry unit,

hydrogenated oil

The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our

daily life.

Constant development in polymer technology, processing machinery, know how and

cost effective production is fast replacing plastics in every segment from its conventional

materials

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2

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding Material 2 3

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3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go up to

7.7 kg by the year 2007. While it is true that our consumption is below the world average

of 17 kg, per capita figures should be viewed in the context of our large population;

sometimes per capita figures are useful only for trend analysis and not in absolute

terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of

working

hours

per day

Capacity

per day

Capacity per

annum

300 days per

annum

CO-EXTRUDED FILM 262.5 Kgs 8 2100 Kgs 630 MTs

PLANT AND MACHINERY

Sl. No Description Nos Rs. lakhs

1 Three layer co-extrusion blown film plant with

single screw 47 mm extruder and accessories

1 31.50

2 Corona surface treatment 1 2.50

3 Three/ four colour rotogravure printing machine 1 5.00

4 Slitter cum grinder machine 1 1.50

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5 Testing machine 1.00

6 Electricals 3.50

Total

45.00

MANAFACTURING PROCESS

The plasticised and homogenised thermoplastic material is injected into a locked

(clamped) mould with sufficient injection speed and pressure. After the melt is cooled in

the mould, it is opened to remove the moulded articles. This is a cyclic process.

Automatic injection moulding machine is the basic machinery involved in this project.

RAW MATERIALS

For -630 MTs

Qty-MTs Rate/MT Value Rs lakhs

LLDPE/LDPE 642.60 64000 411.26

Printing ink 6.00

TOTAL 417.26

Packing materials 630.00 100 0.63

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2500

Rent p.m.-Rs per .5 per sq.ft 12500

Advance-10 months. Rs 125000

UTILITIES

Three phase- KW 110.00

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Power charges Rs. lakhs p.a 3.14

Power & fuel 3.14

For process-Litres per day 2000

For human consumption-

litres/day

200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 3 5000 15000

Unskilled 6 3000 18000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 54000

Add benefits 20% 10800

Total per month 64800

TOTAL PER ANNUM-Rs. lakhs 7.78

SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalised the project can be implemented in three

months time.

COST OF PRODUCTION AND PROFITABILTY

Assumptions Installed capacity 630 MT of Co-extruded film per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.75.00 per kg

Raw materials As per the details given above

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Packing materials As per details given above

Power Rs.3.14 lakhs per annum at 100%

Wages and salaries Rs. 7.78 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% increase per

annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% increase per annum

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS

1. Boolani engineering Corporation, Prabhadevi Industrial estate, 403, Veer

savarkar Marg, Mumbai-400 025

2. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

3. Europack Machines India Pvt Ltd, 52 Bindal Industrial

4. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher,

Ahmedabad – 382415,

5. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74,

Faridabad – 121005.

6. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1

Valva, Ahmedabad – 382445

7. HMT International Ltd,

8. Kolsite MachineFabrik ltd, Verea desai Road, Mumbai-400 058

9. Textair Plastics & Hydraulics, 18-Ambal Nagar Main Road, Ekkattuthangal-97.

10. Klokner Windor India Ltd, 2-J Mound Road, Teynampet-18,

LIST OF RAW MATERIAL SUPPLIERS

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1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641006,

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079,

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastIcs, 57/2, Thirupalli Street – 79,

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

6. Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 1.25 Plant & Machinery 45.00 Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC 6.90 55.65 2. MEANS OF FINANCE Capital 21.90

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Term Loan 33.75 55.65 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed capacity-MTs 630 630 630 630 630Utilisation 60% 70% 80% 80% 80% Production/sales-MTs 378 441 504 504 504Selling Price-Rs. Per MT 75000 75000 75000 75000 75000 Sales Value (Rs.lakhs) 283.50 330.75 378.00 378.00 378.00 Raw Materials 250.36 292.08 333.81 333.81 333.81Packing Materials 0.38 0.44 0.50 0.50 0.50Power & fuel 1.88 2.19 2.51 2.51 2.51Wages & Salaries 7.78 8.16 8.57 9.00 9.45Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88Depreciation 6.75 5.74 4.88 4.15 3.52Cost of Production 267.75 309.27 351.00 350.77 350.67Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38Interest on Term Loan 3.71 3.25 2.32 1.39 0.46Interest on Working Capital 2.95 2.95 2.95 2.95 2.95Total 278.01 319.25 360.24 359.28 358.46 Profit Before Tax 5.49 11.50 17.76 18.72 19.54Provision for tax 1.85 3.87 5.98 6.30 6.58Profit After Tax 3.64 7.63 11.78 12.42 12.96Add: Depreciation 6.75 5.74 4.88 4.15 3.52Cash Accruals 10.39 13.37 16.66 16.57 16.48 Repayment of Term loan 0.00 8.44 8.44 8.44 8.43

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4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 10.43 25% 2.61 7.82 Consumables 2.00 0.06 25% 0.02 0.04 Finished goods 0.50 11.16 25% 2.79 8.37 Debtors 0.50 11.81 10% 1.18 10.63 Expenses 1.00 0.30 100% 0.30 0.00 33.76 6.90 26.86 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 11.78 Sales

= 378.00

3%

Profit before Interest and Tax 23.03 Total Investment

= 82.51

28%

Profit after Tax 11.78 Promoters Capital

= 21.90

54%

7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 8.57 Repairs & Maintenance 0.73 Depreciation 4.88 Admin. & General expenses 3.97 Interest on TL 2.32 20.47

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Profit Before Tax (P) 17.76

FC x 100 20.47 80 BEL = FC +P

=38.23

x 100

x 100

43% of installed capacity

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COMPRESSION MOULDED PLASTIC GOODS

INTRODUCTION

The compression moulding unit will be able to manufacture compression

moulded items such as components required for automobiles, electrical

accessories and fittings, cameras etc. And items such as cigarette cases, ash

trays, table calendars etc The compression-moulding machine shall be suitable

for moulding of bakelite, urea formaldehyde and melamine formaldehyde

moulding compounds. The market for these items is expanding with the industrial

growth in the country.

MARKET

Indian Petrochemical industry is one of the fastest growing sectors of the

economy. The petrochemical sector has an average growth at a rate of 13% per

annum, which is more than double the growth of GDP. The usage of polymers for

injection moulding and other components used in engineering plastics is bound

to increase with the increase in production of automobile vehicles, machinery and

other electrical machinery and consumer durables.

The Indian Plastic Industry has taken great strides in its quest for success. The

last few decades have seen it rise to the position of a leading force in the country

with a sizable base. The industry itself is growing at a fast pace and the per

capita consumption of plastics in the country has increased manifold as

compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities.

It has helped substitute and save scarce natural resources. It is an inseparable

part of our daily life.

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Constant development in polymer technology, processing machinery, know how

and cost effective production is fast replacing plastics in every segment from its

conventional materials

• Polymer demand in india to touch 7.3 million tons by 2006 - 2007 and 12.4

million tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and

china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tons)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

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PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry

Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go

up to 7.7 kg by the year 2007. While it is true that our consumption is below the

world average of 17 kg, per capita figures should be viewed in the context of our

large population; sometimes per capita figures are useful only for trend analysis

and not in absolute terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Compression 45 Kgs 8 360 Kgs 108 MT

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4

moulded

plastic tapes

PLANT AND MACHINERY

No. Description Qty

Price

(Nos.)

(Rs.)

1. Hydraulic press 50 MT 1 4,50,000

2. Hydraulic press 25 MT 1 2,80,000

3. Buffing machine 1 45,000

4. Weighing balance 1 25,000

5. Small hand tools 40,000

6. Cost of moulds & dies 1,60,000

Total 10,00,000

MANAFACTURING PROCESS

For the manufacture of compression moulded plastic goods, hydraulic type

moulding presses are employed. Moulds according to the articles are fixed

between the platens of the hydraulic press.

The compound i.e. bakelite moulding powder is put into the cavity of a preheated

mould and pressed between the platens of press. The combined effect of heat

and pressure causes the cross linking change in the material leading to formation

of the macro molecules. This causes the compound to fill the cavity of moulds

and harden, and after a certain period the mould is opened. After removal, the

mould is cleaned and is ready for next operation.

A separate mould with one or more cavities is required for every item to be

moulded, and for high quality products, mould must be properly made, highly

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polished and should have proper heating arrangement for consistent high

production.

RAW MATERIALS

For MTS 108 Qty-MTs Rate/MT Value Rs. Lakhs Thermosetting materials 113 54000 61.02bakelite, UF etc Matster batches & colour 3 100000 3.00TOTAL 64.02 Packing materials 108.00 1000 1.08

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2000

Rent p.m.-Rs per .5 per sq.ft 10000

Advance-10 months. Rs 100000

UTILITIES

Three phase- KW 20.00

Power charges Rs. lakhs p.a 2.28

For process-Litres per day 0

For human consumption-litres/day 2.00

MANPOWER

Monthly Total

wages

Supervisor 1 8000 8000

Skilled 3 5000 15000

Unskilled 3 3000 9000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 45000

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Add benefits

20% 9000

Total per month 54000

TOTAL PER ANNUM-Rs. lakhs 6.48

SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalised the project can be implemented in

three months time.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 108 MT of compression moulded goods of

various sizes and shapes per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.115.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.2.28 lakh per annum at 100%

Wages and salaries Rs. 6.48 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% increase per

annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

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LIST OF MACHINERY SUPPLIERS:

1. M/s Plastic Machine Mfg. Co., Chirwadi Lane, 2nd Cross LG Road, Goregaon

(E),

Bombay.

2. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600

018.

3. Europack Machines India Pvt Lts, 52, Bindal Industrial Estate, Sakinaka,

Andhari East, Mumbai – 500 072.

4. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad –

382415,

5. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad –

121005.

6. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase

1

Valva, Ahmedabad – 382445

7. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

8. M/s Lohas & Co.,10, Khatawadi Lane, Bombay-400 004.

9. M/s Stearing Industry, 9, Dalal Street, Bombay.

10. M/s K. B. Hydraulic Engg. Works, IC/64, Nissan Huts, NIT, Faridabad.

11. M/s Indo Udyog Co. (P) Ltd., 40, Okhla Industrial Area,New Delhi.

12. M/s Presswel Industries, BP 2A/10 Gandhi Chowk, Faridabad.

FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 1.00 Plant & Machinery 10.00 Other Misc. assets 0.50

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Pre-Operative expenses 2.00 Margin for WC 1.55 15.05 2. MEANS OF FINANCE Capital 7.55 Term Loan 7.50 15.05 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-MTs 108 108 108 108 108Utilisation 60% 70% 80% 80% 80%Production/Sales-MTs 65 76 86 86 86 Selling Price per MT-Rs. 1.15 lakhs Sales Value (Rs.lakhs) 74.75 87.40 98.90 98.90 98.90 Raw Materials 38.41 44.81 51.22 51.22 51.22Packing Materials 0.65 0.76 0.86 0.86 0.86Power 1.37 1.60 1.82 1.82 1.82Wages & Salaries 6.48 6.80 7.14 7.50 7.88Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88Depreciation 1.50 1.28 1.08 0.92 0.78Cost of Production 49.01 55.91 62.85 63.12 63.44Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38Interest on Term Loan 0.83 0.72 0.51 0.31 0.10Interest on Working Capital 0.62 0.62 0.62 0.62 0.62Total 54.06 61.03 67.95 68.22 68.54 Profit Before Tax 20.69 26.38 30.95 30.68 30.36Provision for tax 6.96 8.88 10.42 10.33 10.22Profit After Tax 13.73 17.50 20.53 20.35 20.14Add: Depreciation 1.50 1.28 1.08 0.92 0.78

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Cash Accruals 15.23 18.77 21.61 21.27 20.92 Repayment of Term loan 0.00 1.88 1.88 1.88 1.86 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 1.60 25% 0.40 1.20 Consumables 2.00 0.11 25% 0.03 0.08 Finished goods 0.50 2.04 25% 0.51 1.53 Debtors 0.50 3.11 10% 0.31 2.80 Expenses 1.00 0.30 100% 0.30 0.00 7.16 1.55 5.61 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 20.53 Sales

= 98.90

21%

Profit before Interest and Tax 32.08 Total Investment

= 20.66

155%

Profit after Tax 20.53 Promoters Capital

= 7.55

272%

7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 7.14 Repairs & Maintenance 0.73

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Depreciation 1.08 Admin. & General expenses 3.97 Interest on TL 0.51 13.43 Profit Before Tax (P) 30.95

FC x 100 13.43 80 BEL = FC +P

=44.38

x 100

x 100

24% of installed capacity

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DISPOSABLE CUPS AND PLATES

INTRODUCTION

Plastic disposable cups are used widely in all sectors for serving hot and cold

beverages despite the introduction of the paper cups. The consumption of the

disposable cups is increasing as the consumption of beverages and other items

are increasing.

MARKET DEMAND

The Indian Plastic Industry has taken great strides in its quest for success. The

last few decades have seen it rise to the position of a leading force in the country

with a sizable base. The industry itself is growing at a fast pace and the per

capita consumption of plastics in the country has increased manifold as

compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities.

It has helped substitute and save scarce natural resources. It is an inseparable

part of our daily life.

Constant development in polymer technology, processing machinery, know how

and cost effective production is fast replacing plastics in every segment from its

conventional materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4

million tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and

china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

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Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

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Extrusion 16700 Nos

* Source: Task Force on Petrochemical / Industry

Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go

up to 7.7 kg by the year 2007. While it is true that our consumption is below the

world average of 17 kg, per capita figures should be viewed in the context of our

large population; sometimes per capita figures are useful only for trend analysis

and not in absolute terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Disposable

cups

12500 nos 8 1.00 lakh

nos

300

lakhs(average

weight 2 grams)

PLANT AND MACHINERY

S.no Items Qty Rs. lakhs

1 Conventional Roll Fed Automatic 1

thermoforming machine

6.00

2 Scrap grinder 1.00

4 Dies for forming machine 100

Total 8.00

MANUFACTURING PROCESS

The basic machinery required is a thermoforming plant in which PP/PS sheet is

fed from bobbin reels and the required length is dragged from these reels. The

conveyor chains carry the sheet through the heater assembly to the forming

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table. The heated sheet is punched to form the shape of mould. The cups thus

formed are stocked and the punched waste sheet is wound on the scrap sheet

winder. To get printed cups, the sheets are printed before forming into cup.

RAW MATERIALS

For -lakh cups 300

Qty-kgs Rate/MT Value Rs. Lakhs

High impact Polystyrene sheets 60000 80 48.00

TOTAL 48.00

Packing materials 300.00 1000 3.00

LAND AND BUILDINGS

Built up area-Sq.ft 2500

Rent p.m.-Rs per .5 per sq.ft 12500

Advance-10 months. Rs 125000

UTILITIES

Powers & Fuels

Three phase- KW 50.00

Power charges Rs.lakhs p.a 5.70

For process-Litres per day 0

For human consumption-

litres/day

200

MANPOWER

Monthly wages Total

Supervisor 1 8000 8000

Skilled 2 5000 10000

Unskilled 2 3000 6000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

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Security 2 2000 4000

sub total 37000

Add benefits 20% 7400

Total per month 44400

TOTAL PER ANNUM-Rs. lakhs 5.33

SCHEDULE OF IMPLEMENTATION

After the funding arrangements and the finalization of the premises, the project

can be implemented within 3 months period.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity Disposable plastic cups 300 lakhs per annum.

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Re.0.25 per cup

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.5.70 lakhs per annum at 100%

Wages and salaries Rs. 5.33 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.20000 per month

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

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6

ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS

1. Mangalam Industrial combines, 7-A (NP) K.G.Street, Padi, Chennai-600 050

2. Wonderpack Industries (P) Ltd, 72, 1st Floor, Shivalaya Mansion,

Hamington Road, Mumbai - 400 008.

3. M/s Klockner Windsor India Ltd, Plot E-6, U2 Road, Wagle Industrial Estate,

Thane-400 604.

4. M/s Plasmec Engineering (P) Ltd, Plot No. A-325, Road No.21,

Wagle Industrial Estate, Thane-400 604.

5. M/s Plastopack, B-15, industrial Estate, Mogappair, Chennai-600 050.

ADDRESSES OF RAW MATERIAL AND OTHER CONSUMABLE SUPPLIERS

1. M/s Polychem Ltd, 7, Jamshedji Tata Road, Churchgate Reclamation, Bombay.

2. M/s East Anglia Plastics (I) Ltd, 3 Camac Street, Calcutta-700 016.

3. M/s Hindustan Polymers Ltd, Gopalapatnam, Vishakapatnam-530 027.

4. M/s BASF India Ltd, Tiecicon House, Dr. E. Moses Road, Bombay-400 011.

5. M/s Hindustan Polymers, Naar Building, 1-E, Jhandewalan, New Delhi.

6. M/s Indian Commercial Co (P) Ltd.,7, Jamshedji Tata Road,

Churchgate Reclamation, Bombay-400 020.

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 1.25

Plant & Machinery 8.00

Other Misc. assets 0.50

Pre-Operative expenses 1.50

Margin for WC 1.30

12.55

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7

2. MEANS OF FINANCE

Capital 6.55

Term Loan 6.00

12.55

Term Loan amount is assumed at 75% value of the Machinery.

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-lakhs 300 300 300 300 300

Utilisation 60% 70% 80% 80% 80%

Production/Sales-lakhs 180 210 240 240 240

Selling Price per piece-Rs. 0.25

Sales Value (Rs. lakhs) 45.00 52.50 60.00 60.00 60.00

Raw Materials 28.80 33.60 38.40 38.40 38.40

Packing Materials 1.80 2.10 2.40 2.40 2.40

Power 3.42 3.99 4.56 4.56 4.56

Wages & Salaries 5.33 5.59 5.87 6.16 6.47

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 1.20 1.02 0.87 0.74 0.63

Cost of Production 41.15 46.96 52.83 53.06 53.34

Selling, Admin, & General exp 2.40 2.52 2.65 2.78 2.92

Interest on Term Loan 0.66 0.58 0.41 0.25 0.08

Interest on Working Capital 0.45 0.45 0.45 0.45 0.45

Total 44.66 50.51 56.34 56.54 56.79

Profit Before Tax 0.34 1.99 3.66 3.46 3.21

Provision for tax 0.00 0.67 1.23 1.17 1.08

Profit After Tax 0.34 1.32 2.43 2.29 2.13

Add: Depreciation 1.20 1.02 0.87 0.74 0.63

Cash Accruals 1.54 2.34 3.30 3.03 2.76

Repayment of Term loan 0.00 1.50 1.50 1.50 1.50

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8

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 1.20 25% 0.30 0.90

Consumables 2.00 0.30 25% 0.08 0.22

Finished goods 0.50 1.71 25% 0.43 1.28

Debtors 0.50 1.88 10% 0.19 1.69

Expenses 1.00 0.30 100% 0.30 0.00

5.39 1.30 4.09

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 2.43

Sales

=

60.00

4%

Profit before Interest and Tax 4.52

Total Investment

=

16.64

27%

Profit after Tax 2.43

Promoters Capital

=

6.55

37%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 5.87

Repairs & Maintenance 0.73

Depreciation 0.87

Admin. & General expenses 2.65

Interest on TL 0.41

10.53

Profit Before Tax (P) 3.66

FC x 100 10.53 80 BEL =

FC +P

=

14.19

x

100

x 100

59% of installed capacity

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DISPOSABLE SYRINGES

INTRODUCTION

Disposable syringes are made of Polypropylene. They are available in the sizes

of 1ml,2 ml, 5 ml,10ml .There is widespread awareness of health consciousness

and there is a need for disposable needle.

MARKET POTENTIAL

The Indian Plastic Industry has taken great strides in its quest for success. The

last few decades have seen it rise to the position of a leading force in the country

with a sizable base. The industry itself is growing at a fast pace and the per

capita consumption of plastics in the country has increased manifold as

compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities.

It has helped substitute and save scarce natural resources. It is an inseparable

part of our daily life.

Constant development in polymer technology, processing machinery, know how

and cost effective production is fast replacing plastics in every segment from its

conventional materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4

million tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and

china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

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Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermosets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

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Extrusion 16700 Nos

* Source: Task Force on Petrochemical / Industry

Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go

up to 7.7 kg by the year 2007. While it is true that our consumption is below the

world average of 17 kg, per capita figures should be viewed in the context of our

large population; sometimes per capita figures are useful only for trend analysis

and not in absolute terms.

INSTALLED CAPACITY

Product No of

working

hours

per day

Capacity

per day

Capacity per

annum

300 days per

annum

Disposable syringes-2 ml

Disposable syringes-5 ml

8

8

19200

19200

5760000

5760000

PLANT AND MACHINERY

Sl. No Description Qty Rs. in Lakhs

1. Zigma Injection Moulding machine 1 27.00

2. Sterilisation plant ( Etylene oxide) 7.00

3. Blister packaging machine 9.30

4. Automatic packing machine 26.00

5. Scrap grinding machine 0.70

6. Weighing scale 0.60

7. Air compressor 0.60

8. Water pump 0.30

9. Chilling plant 3.00

10. Testing equipment 0.50

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11. Electricals 7.00

12. Set of moulds for barrels ( 16 cavity barrel) 5.50

13. Set of moulds for syringes body 16 cavity for

barrel and 16 cavity for plungers)

7.50

Total 95.00

MANUFACURING PROCESS

Raw material polypropylene is fed into injection moulding machine and moulded

in chilled condition to get better clarity.The moulded syringes is then assembled

with needle in auomatic assembly line.the whole assembly is then sterilsed in

sterilization plant using ethylene oxide.The finished syringes are then packedin

blisters with the help of blister packing machine.

RAW MATERIALS

Qty-MTs Rate/MT Value Rs. Lakhs

Polypropylene 82.26 70000 57.58

Needles Nos 11760000 0.15 17.64

TOTAL 75.22

Packing materials 11520000 0.10 11.52

LOCATION LAND AND BUILDING

Built up area-Sq.ft 3500

Rent p.m.-Rs per .5 per sq.ft 17500

Advance-10 months. Rs 175000

UTILITIES

Powers & Fuel

Three phase- KW 30.00Power charges Rs. lakhs p.a 3.42Power & fuel 3.42For process-Litres per day 0For human consumption-litres/day 200

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MANPOWER

Monthly wages Total Supervisor 1 8000 8000Skilled 6 5000 30000Unskilled 12 3000 36000Accounts Assistant 1 4000 4000Sales Executive 1 5000 5000Security 2 2000 4000sub total 87000Add benefits 20% 17400Total per month 104400TOTAL PER ANNUM-Rs. lakhs 12.53

SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalized the project can be implemented in

three months time.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price 2 Ml Rs.1.20

5 Ml Rs. 1.60

Raw materials As per the details given above

Packing materials As per details given above

Power Rs. 3.42 lakh per annum at 100%

Wages and salaries Rs. 12.53 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.6 lakh per annum with 10% increase per

annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% increase per

annum.

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Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS:

1. M/s Ossberger - Tubbinen Fabric-Abt, Kunts Heffmachinen 8832,Weissen,

BURG/BAZERNM, P. O. Box 425, West Germany.

2. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

3. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Siakinaka,

Andhari East, Mumbai – 500 072.

4. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher,

Ahmedabad – 382415,

5. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74,

Faridabad – 121005.

6. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate,

Phase 1 Valva, Ahmedabad – 382445

7. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore- 560 032.

8. M/s Starline Engineering Services, Ideal Indl. Estate, S. Bapat Marg,

Bombay-400 013.

9. M/s Plastopack & Co.,15, Sashibushan Basak Lane, Calcutta-700 036.

10. M/s R & K Enterprises, 829, GIDC, Makarpura, Baroda-390 010.

11. M/s Niranjan Plastics,19/7, Botwala Building, Mahim, Bombay-400 016.

12. M/s Klockner Windsor (I) Ltd.,U-6, U-2 Road,Wage Industrial Estate,

Bombay-400 604.

13. M/s Brimco Plastic Machinery (P) Ltd., 55, Brimco House, Govt. Indl. Estate,

Bombay-400 067.

LIST OF RAW MATERIAL SUPPLIERS

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641606.

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079.

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastICS, 57/2, Thirupalli Street – 600 079.

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5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

6. Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

7. Sankar Mercantile Agencies, 43 Vysarpadi Industrial Estate,

Chennai – 600 039.

8. Indian Petrochemical Corporation. 89 Santhome High Road,

Chenai – 600 028.

9. PP Industries, 91 Stranhas Road, Ooteri,Chennai – 600 012.

10. Haldie Petrochemicals, 41 UN Road, T.nagar, Chennai 600 017.

11. V.B.SREE GanpathyColourCompany, 63, Devaraja Mudali Street, 2nd Floor,

Chennai – 600 003.

12. Prayag Polytech Pvt. LTd. 2468, Prayag House, Nalwa Street, Pahar Ganj,

New Delhi – 110 055.

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FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 1.75 Plant & Machinery 95.00 Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC 2.31 101.56 2. MEANS OF FINANCE Capital 30.31 Term Loan 71.25 101.56 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-No of pieces 2 ml 5760000 5760000 5760000 5760000 5760000 5 ml 5760000 5760000 5760000 5760000 5760000 Utilisation 60% 70% 80% 80% 80% Production/Sales-No of pieces 2 ml 3456000 4032000 4608000 4608000 4608000 5 ml 3456000 4032000 4608000 4608000 4608000 Selling Price-Rs.per piece. 2 ml 1.20 1.20 1.20 1.20 1.20 5 ml 1.60 1.60 1.60 1.60 1.60 Sales Value (Rs.lakhs) 96.77 112.90 129.02 129.02 129.02

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Raw Materials 45.13 52.66 60.18 60.18 60.18 Packing Materials 6.91 8.06 9.22 9.22 9.22 Power & fuel 2.05 2.39 2.74 2.74 2.74 Wages & Salaries 12.53 13.15 13.81 14.50 15.23 Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88 Depreciation 14.25 12.11 10.30 8.75 7.44 Cost of Production 81.47 89.03 96.98 96.19 95.69 Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38 Interest on Term Loan 7.84 6.86 4.90 2.94 0.98 Interest on Working Capital 0.93 0.93 0.93 0.93 0.93 Total 93.84 100.60 106.78 104.23 101.98 Profit Before Tax 2.93 12.29 22.25 24.79 27.05 Provision for tax 0.99 4.14 7.49 8.35 9.10 Profit After Tax 1.94 8.15 14.76 16.44 17.95 Add: Depreciation 14.25 12.11 10.30 8.75 7.44 Cash Accruals 16.19 20.27 25.05 25.19 25.38 Repayment of Term loan 0.00 17.81 17.81 17.81 17.82 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 1.88 25% 0.47 1.41 Consumables 2.00 1.15 25% 0.29 0.86 Finished goods 0.50 3.39 25% 0.85 2.54 Debtors 0.50 4.03 10% 0.40 3.63 Expenses 1.00 0.30 100% 0.30 0.00 10.75 2.31 8.44 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 14.76 Sales

= 129.02

11%

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Profit before Interest and Tax 28.08 Total Investment

= 110.00

26%

Profit after Tax 14.76 Promoters Capital

= 30.31

49%

7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 13.81 Repairs & Maintenance 0.73 Depreciation 10.30 Admin. & General expenses 3.97 Interest on TL 4.90 33.71 Profit Before Tax (P) 22.25

FC x 100 33.71 80 BEL = FC +P

=55.95

x 100

x 100

48% of installed capacity

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1

FEVICOL TYPE ADHESIVE

INTRODUCTION

If we want to join similar or dissimilar surface together we want a paste to join that

surface. Now a days we have Fevicol type of gum which are used to joint the surfaces.

The Fevicol types of gums are based on synthetic resins which are made from polyvinyl

acetate resins. Polyvinyl acetate in solid state is a clear, odourless, tasteless, non-toxic,

thermoplastic resin. They do not melt, but soften over a temperature range. The resin is

unaffected by sunlight, ultraviolet light and air. Further more, it will absorb a small of

water. Polyvinyl acetated is neutral and non-corrosive. The resin is not appreciable

soluble in the following solvents viz., animal fats, linseed oil, turpentine, naphtha,

vegetable oils and waxes.

The characteristics of this type of adhesives are:

(a) They use to joint the similar or dissimilar surface.

(b) The components joined maintain the structural integrity.

(c) Provide liquid and vapour tight joints.

MARKET

Polyvinyl acetate emulsions / adhesives are now easily adaptable to high speed

machinery in paper conversion and packaging fields and find place as wood adhesives

also. It is now used in adhesives for various applications as mentioned below :

1. Book Binding industry.

2. Manufacturing of Envelopes, Paper Bags, Gummed Tapes, Paper Tubes,

Drinking Straws, Multi wall Shopping Bags, Folding type Lunch Boxes, Sticking

Labels, Films and Foils, Paper boards, Milk Cartons etc.

3. Automobile Upholstery.

4. Manufacturing of Cigarette Tips.

5. Pencil Industry.

6. Leather binding & Wood assembly works.

7. Manufacturing of Tile cements.

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2

8. For Lamination works and for joining two or more plies of material into a new

composite.

9. For binding of cement paints to masonry walls.

Due to its multifarious applications the demand for this type of Adhesives has been

increasing sharply in recent years.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Fevicol type

adhesive

(Polyvinyl

acetate

adhesive)

25 kgs 8 200 kg 60 MT

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. Reaction Kettle of stainless Whole Unit 1,50,000

steel construction, M.S. Jacketed,

with variable speed agitator and steam

heating and water cooling arrangement.

(350 Litres Capacity)

2. Reflux type Condensor 1 25,000

3. M.S. tank for Monomer 1 30,000

(250 Litres Capacity)

4. S.S. Tank 250 litres Capacity 1 55,000

5. Oil fired steam mini Boiler 1 65,000

6. Motors & Pumps 25,000

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3

7. Testing Equipments and Misc. 50,000

equipments like Weighing Scale,

Chemical Balance etc.

Total 4,00,000

MANAFACTURING PROCESS

The manufacture of adhesive from synthetic resin is simple and can be started with very

little investment.

The process consists of:

1. Dispersion

2. Polymerisation

3. Addition of other ingredients

4. Packing

The main equipment consists of a Mixing Kettle made of Stainless steel with an

Agitator, M.S. Jacket, and Temperature controllers etc. The kettle is heated by passing

steam through the jacket. A bottom outlet is provided for draining the water from steam

condensate. The various steps in the manufacturing process are described below :

1. Dispersion

The monomers or polymers are added to the water in the kettle and small amount of

soap is added to the mixture and the stirring started. The quantities added are adjusted

in such a way as to get an emulsion of 55% solids.

2. Polymerisation

This step is necessary only when a monomer is used. A catalyst (like Benzyl Peroxide)

is added and no heating is started. With the thermostat set at some suitable

temperature, the stirring is started when the required temperature has been reached.

Further heating is then stopped and the excess heat of reaction is removed by the

circulation of cooling water through the jacket till the whole reaction is complete.

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4

3. Addition of other ingredients

While the emulsion is still quite hot, other ingredients as required depending on the

type of Adhesive being manufactured, are added and stirred well.

Some of these Ingredients are :

1. O-Phenyl Phenol (Preservative)

2. Formaldehyde (40%)

3. Ammonia

4. Calcium Carbonate

5. Bleach solution

6. Colouring Agents

4. Packing

The adhesive is finally cooled and taken out from the bottom opening valve.

Next the adhesive is packed in plastic containers of 1/2, 1, 2, 5, 10, 25, 50 kgs capacity

as per customer's requirements and stored in a cool place before despatch.

A Typical Formulation (For Wood Adhesive)

RAW MATERIALS

For MTS 60

Qty-MTs Rate/MT Value Rs. Lakhs

Vinyl acetate monomer 24 72000 17.28

Poly vinyl alcohol 1.80 172000 3.10

Dibutyl Pthalate 0.30 69000 0.21

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5

Octanol 0.30 67000 0.20

Maleic Anhydride 1.50 90000 1.35

Calcium Carbonate 1.20 22000 0.26

ButylAcrylate 1.20 112000 1.34

Ethyl acetate 0.30 69000 0.21

Emulsifier 0.24 51000 0.12

TOTAL 24.07

Packing materials 60 1000 0.60

LOCATION LAND AND BUILDING

Built up area-Sq.ft 1000

Rent p.m.-Rs per .5 per sq.ft 5000

Advance-10 months .Rs 50000

UTILITIES

Power

Three phase- KW 15.00

Power charges Rs. lakhs p.a 1.71

For process-Litres per day 5000

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 2 5000 10000

Unskilled 3 3000 9000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 40000

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6

Add benefits 20% 8000

Total per month 48000

TOTAL PER ANNUM-Rs. lakhs 5.76

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 60 MT of Adhesive per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.75.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs1.71. lakh per annum at 100%

Wages and salaries Rs. 5.76 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

increase

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS

1. M/s.Dry Conn Engg(P) Ltd., B-4, SIDCO Industrial Estate, Chennai - 600 049.

2. M/s.Avijo Polymer Industries, 32-B, Mounaswamymadam Street, Chennai - 600 053.

3. M/s.Chemfab, Team House, G.S.T. Road, Chennai - 600 048.

4. M/s. Marvel Machines Pvt. Ltd,140, Anna Salai, Chennai - 600 015.

5. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

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6. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari

East, Mumbai – 500 072.

7. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher,

Ahmedabad – 382415,

8. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74,

Faridabad – 121005.

9. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1

Valva, Ahmedabad – 382445

10 HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560032.

RAW MATERIALS

Polyvinyl Acetate Monomers & Polymers :

1. M/s. Vam Organic Chemicals Ltd, "Skyline House", 85 Nehru Place, New Delhi-110 019.

2. M/s. Polychem Ltd, Oriental House, JN Tata Road, Churchgate, Bombay - 400 020.

3. M/s. Asco Plastics,17-B, Muthusa Maistry Street, Seven Wells, Chennai - 600 001.

Miscellaneous Chemicals & Additives :

1. M/s. Rajshree Petrochemicals,156 Mint Street,1st Floor Kanchan Plaza, Chennai - 600 079.

2. M/s. Kannan & Company,127, Nyniappa Naicken Street, Chennai - 600 003.

3. M/s. Gaj Chemicals, 23, Nyniappa Naicken Street, Chennai - 600 003.

4. M/s. Paragon Chemicals,19-A, Pandaram Street, Puraswalkam, Chennai - 600 007

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 0.50

Plant & Machinery 4.00

Other Misc. assets 0.50

Pre-Operative expenses 1.50

Margin for WC 0.82

7.32

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2. MEANS OF FINANCE

Capital 4.32

Term Loan 3.00

7.32

Term Loan amount is assumed at 75% of the value Machinery

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-MTs 60 60 60 60 60

Utilisation 60% 70% 80% 80% 80%

Production/Sales-MTs 36 42 48 48 48

Selling Price per MT-Rs. 0.75 Lakhs

Sales Value (Rs. lakhs) 27.00 31.50 36.00 36.00 36.00

Raw Materials 14.44 16.85 19.26 19.26 19.26

Packing Materials 0.36 0.42 0.48 0.48 0.48

Power 1.03 1.20 1.37 1.37 1.37

Wages & Salaries 5.76 6.05 6.35 6.67 7.00

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 0.60 0.51 0.43 0.37 0.31

Cost of Production 22.79 25.69 28.62 28.95 29.30

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 0.33 0.29 0.21 0.12 0.04

Interest on Working Capital 0.24 0.24 0.24 0.24 0.24

Total 26.96 30.00 33.04 33.48 33.96

Profit Before Tax 0.04 1.50 2.96 2.52 2.04

Provision for tax 0.01 0.50 1.00 0.85 0.69

Profit After Tax 0.03 1.00 1.96 1.67 1.35

Add: Depreciation 0.60 0.51 0.43 0.37 0.31

Cash Accruals 0.63 1.51 2.39 2.04 1.66

Repayment of Term loan 0.00 0.75 0.75 0.75 0.75

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4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 0.60 25% 0.15 0.45

Consumables 2.00 0.06 25% 0.02 0.04

Finished goods 0.50 0.95 25% 0.24 0.71

Debtors 0.50 1.13 10% 0.11 1.02

Expenses 1.00 0.30 100% 0.30 0.00

3.04 0.82 2.22

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 1.96

Sales

=

36.00

5%

Profit before Interest and Tax 3.41

Total Investment

=

9.54

36%

Profit after Tax 1.96

Promoters Capital

=

4.32

45%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 6.35

Repairs & Maintenance 0.73

Depreciation 0.43

Admin. & General expenses 3.97

Interest on TL 0.21

11.69

Profit Before Tax (P) 2.96

FC x 100 11.69 80 BEL =

FC +P

=

14.65

x

100

x 100

64% of installed capacity or

Production volume 38.4

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MTs Or sales value

Rs.28.80 lacs

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FIBREGLASS REINFORCED PLASTIC PRODUCTS

INTRODUCTION

Fibre reinforced plastics have various applications in manufacturing luggage, boat hulls,

car & truck bodies, consumer products such as luggage, chairs and fishing rods, trays,

pipes, ducts, electrical appliances, construction applications, large sheets and panelling

etc. FRP is a composite material consisting of reinforcing fibres and thermosetting or

thermoplastic resins. Other materials such as fillers and pigments may also be present,

although they are not an essential part of the composite. Glass fibre is generally used

as a reinforcing material and polyester resin usually as a bonding agent. Such plastics

are known for their excellent strength to weight ratio.

MARKET

The product chosen is Helmet used by two-wheeler drivers. Many states have made it

statutory to wear helmets and the number of two wheelers on the road is increasing.

Therefore there is a continuous demand for FRP products like helmets.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity

per day

Capacity per

annum

300 days per

annum

Fibre Glass reinforced -

Helmets

25 nos 8 200 nos 60000 nos

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. Mechanical mixer-stainless steel 1 1,00,000

most stable mixer machine of blade, propeller &

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gate paddle type fitted with electric motor

and driving gear mechanism for rotating at 40 rpm.

2. Forming chamber machine-capacity 1 1,20,000

150 preforms per hour, turn table size 48" fitted with

blower and spraying arrangements for binder

3. Low pressure moulding press of 1 5,20,000

159 tonnes capacity, table size 1219 x 914 mm

daylight 1981 mm, stroke 1219 mm

4. Moulding table 1 40,000

5. Drying oven with inside chamber 1 73,000

with shelves, electricity operated with draught and

thermostatic control

6. Compressor - rotary, - Air displacement 40 1 90,000

CFM, Horse power - 10 HP

7. Diamond wheel trimmers - with the 1 35,000

following specifications :- Air consumption of 80 PSI,

15 CFM, Diameter of wheel - 4 metres. Maxi-

mum depth of cut 7/16"

8. Sander - high speed machine with 2 40,000

the arrangement for the supply of water & air,

collet size 6 mm.

9. Router - supported on 2 heavy duty 2 40,000

Bearings, speed 2800 rpm air consum - ption 7 CFM,

Collet size 6 mm

10. Miscellaneous tools, plastic buckets, 50,000

brushes, gloves, rollers etc.

11. Testing equipment such as hardness 1,30,000

tester, thickness gauge balance etc.

12. Cost of moulds 2,62,000

Total 15,00,000

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MANAFACTURING PROCESS

Reinforced plastics are based either on thermosetting resins or thermoplastics resins.

Whereas thermo set can be processed by a variety of moulding methods, thermo-

plastics are almost invariably injection moulded. The essential requirements of a good

moulding operation are :

The resin must penetrate the entire mass of reinforcement and wet every fibre uniformly.

The selection of suitable reinforcement, the mechanical properties of the moulding

depend upon the type of reinforcement thickness and direction of lay up.

Different techniques used in the production of reinforced plastics are as under :

1. Centrifugal moulding

2. Hand lay up moulding

3. Spray up moulding

4. Cold matched tool moulding

5. Bag moulding

6. Matched die moulding

7. High pressure moulding

8. Filament winding

These days hand lay-up process and matched die moulding process are commonly

used for the manufacture of fibre glass reinforced plastic components/products.

Detailed description of both the process are as under :

Hand lay-up process - (Contact moulding process, wet lay-up process, single mould

process, bucket and brush technique). This is the most popular method for manufacture

of large and complex items. It requires minimum of equipment and inexpensive moulds

made of reinforced plastics, plaster of Paris, wood, etc. Only one mould either male or

female, is used and the articles produced have good finish on the side which comes in

contact with the mould. Resins used in this process are polyesters and epoxies. The

moulding operation is as follows :-

1. Application of release agent

2. The Gel Coat

3. The lay-up operation

4. Curing and releasing the moulding

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Matched die moulding process : It comprises of moulding the resins and the

reinforcement to shape it in matched metal dies in hydraulic presses under heat and

pressure to produce parts that have excellent uniformity and outstanding surface finish

on both sides. Here release agent is first applied to the dies and the reinforcement

material is placed on the bottom die, resin is then poured on the reinforcement and the

die is press closed. This closing is carried out slowly to avoid air entrapment and

washing of the reinforcement with too fast moving resin. Cure times with polyesters

range from 2 to 5 minutes depending upon the type of resins and thickness of the parts.

On opening the press the parts may remain attached to one of the dies and it is

important not to strain any part of the moulding in removing it. Suction pads are often

useful. In certain cases of difficult shapes or deep mouldings with little taper, it is

sometimes worthwhile to make provision for blow off.

RAW MATERIALS

For -Nos Helmets 60000.00

Qty-MTs Rate/MT Value Rs. Lakhs

Resin 28800.00 105 30.24

Fibre glass 14400.00 143 20.59

Catalyst 1200.00 250 3.00

Accelerator/colours 300.00 340 1.02

Rexin 12000.00 192 23.04

Carduroy velvet 5400.00 115 6.21

Corrugated rubber 60000.00 15 9.00

Thermocole 60000.00 26 15.60

Niwar 60000.00 12 7.20

Foam 1440.00 77 1.11

Thread 3000.00 28 0.84

Rubber solution 1800.00 205 3.69

TOTAL 121.54

Packing materials 60000.00 5.00 3.00

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LOCATION LAND AND BUILDING

Built up area-Sq.ft 2000

Rent p.m.-Rs per .5 per sq.ft 10000

Advance-10 months. Rs 100000

UTILITIES

Power & Water

Three phase- KW 16.00

Power charges Rs. lakhs p.a 1.82

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 8 5000 40000

Unskilled 8 3000 24000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 85000

Add benefits 20% 17000

Total per month 102000

TOTAL PER ANNUM-Rs. lakhs 12.24

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COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity FRP Helmets-60000 Nos

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.300.00 per Helmet

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.1.82 lakh per annum at 100%

Wages and salaries Rs. 12.24 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% of annual

increase

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS

1. M/s Presswel Industries, Plot No.10, A/NH 2, Gandhi Chowk, NIT, Faridabad.

2. M/s Hindustan Machine Tools Ltd, Press Division, Hyderabad.

3. M/s Whitney, Plot No. 38/39, DZ, MIDC Chinchwad, Pune-411 019.

4. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

5. Europack Machines India Pvt Lts., 52 Bindal Industrial Estate, Sakinaka, Andhari

East, Mumbai – 500 072.

6. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher,

Ahmedabad – 382415,

7. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74,

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Faridabad – 121005.

8. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1

Valva, Ahmedabad – 382445

10. HMT International Ltd, 59, HMT Bhavan, Bellary Road, Bangalore – 560 032.

RAW MATERIALS

1. M/s Crystic Resin India (P) Ltd., 19/6, Mathura Road, Faridabad.

2. M/s Acropolymers (P) Ltd., Khandsa Road, Gurogan, Haryana.

3. M/s Bekalite Hylam (P) Ltd., Ticcon, Dr. E Moses Road, Mahalakshmi Chambers,

Bombay.

4. M/s Fibre Glass Pilkington India Ltd., 9, Wallace Street, Fort Bombay.

5. M/s Deccan Fibre Glass Ltd.,12th floor, Kemkunt Tower, 98 Nehru Place New Delhi -19.

6. M/s M. P. Twiga Fibre Glass Ltd., East of Kailash Comm. Centre, East of Kailash,

New Delhi.

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 1.00

Plant & Machinery 15.00

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 2.54

21.04

2. MEANS OF FINANCE

Capital 9.79

Term Loan 11.25

21.04

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Term Loan amount is assumed at 75% of the value of Machinery

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3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-Nos. 60000 60000 60000 60000 60000

Utilisation 60% 70% 80% 80% 80%

Production/Sales-lakhs 36000 42000 48000 48000 48000

Selling Price per lakh Nos-Rs. 300.00

Sales Value (Rs. lakhs) 108.00 126.00 144.00 144.00 144.00

Raw Materials 72.92 85.08 97.23 97.23 97.23

Packing Materials 1.80 2.10 2.40 2.40 2.40

Power 1.09 1.28 1.46 1.46 1.46

Wages & Salaries 12.24 12.85 13.49 14.16 14.87

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 2.25 1.91 1.63 1.38 1.17

Cost of Production 90.90 103.88 116.94 117.43 118.01

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 1.24 1.08 0.77 0.46 0.16

Interest on Working Capital 1.03 1.03 1.03 1.03 1.03

Total

96.77 109.77 122.71 123.09 123.58

Profit Before Tax

11.23 16.23 21.29 20.91 20.42

Provision for tax 3.78 5.46 7.17 7.04 6.87

Profit After Tax 7.45 10.77 14.12 13.87 13.55

Add: Depreciation

2.25 1.91 1.63 1.38 1.17

Cash Accruals 9.70 12.68 15.75 15.25 14.72

Repayment of Term loan 0.00 2.81 2.81 2.81 2.82

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4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 3.04 25% 0.76 2.28

Consumables 2.00 0.30 25% 0.08 0.22

Finished goods 0.50 3.79 25% 0.95 2.84

Debtors 0.50 4.50 10% 0.45 4.05

Expenses 1.00 0.30 100% 0.30 0.00

11.93 2.54 9.39

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 14.12

Sales

=

144.00

10%

Profit before Interest and Tax 23.09

Total Investment

=

30.43

76%

Profit after Tax 14.12

Promoters Capital

=

9.79

144%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 13.49

Repairs & Maintenance 0.73

Depreciation 1.63

Admin. & General expenses 3.97

Interest on TL 0.77

20.59

Profit Before Tax (P) 21.29

FC x 100 20.59 80 BEL =

FC +P

=

41.88

x

100

x 100

39% of installed capacity

or Production volume

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23400 Nos.

or sales value

Rs.70.20 lacs

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FISHNET ROPES

INTRODUCTION

Polypropylene ropes are fast replacing because of superior characteristics such as high

tensile strength, good abrasion & wrinkle resistance, lightweight and low moisture

absorption. These ropes, mooring and packaging operations make fishing nets. These

ropes are inert to decay and is unaffected by exposure to acids, alkalise and other

chemicals. In recent time the ropes are increasing the selling rapidly.

In U.S.A and Europe the older Random Fibrillation technique is very popular. This

technique is superior and has distinct technical advantages. Most of the Indian

manufacturers are still using the older Random Fibrillation technique.

Shipping & Marine Industry, Fishermen’s Co-operative Societies, Defence Industry, Navy,

ONGC, Electricity Boards, Port Trusts & Dock Yards, Sugar Mills, Paper Plants,

Transport Industry, Railways, and Agriculture are use these rope. They use the ropes for

martial handling jobs and for general-purpose house hold applications

Polypropylene ropes are fast replacing the jute and HDPE ropes on account of their

superior characteristics such as high tensile strength, good abrasion & wrinkle resistance,

light weight and low moisture absorption. These ropes find extensive use in fishing nets,

moorings and packaging operations. Further the Polypropylene material is inert to decay

and is unaffected by exposure to acids, alkalise and other chemicals. PP ropes also hold

knots firmly. On account of the above, the demand for these ropes for various

applications has been rapidly increasing in recent times.

The Pattern Fibrillation technique, which is a recent innovation ensures criss-cross

strands of greater strength and lighter weight. This technique, which is superior and has

distinct technical advantages over the older Random Fibrillation technique is now very

popular in U.S.A. and Europe. As against this, most of the Indian Manufacturers are still

using the older Random Fibrillation technique.

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PP fibrillated ropes are widely used by Shipping & Marine Industry, Fishermen's

Co-operative Societies, Defence Industry, Navy, ONGC, Electricity Boards, Port Trusts &

Dock Yards, Sugar Mills, Paper Plants, Transport Industry, Railways, and Agriculture.

Further, they are widely used for material handling jobs and for general-purpose

household applications.

MARKET POTENTIAL

The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our daily

life.

Constant development in polymer technology, processing machinery, know how and cost

effective production is fast replacing plastics in every segment from its conventional

materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

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Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

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* Source : Task Force on Petrochemical / Industry Estimate The per capita plastics consumption, which is currently at 3 kg, is projected to go up to

7.7 kg by the year 2007. While it is true that our consumption is below the world average

of 17 kg, per capita figures should be viewed in the context of our large population;

sometimes per capita figures are useful only for trend analysis and not in absolute terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Fish net ropes 20 20 400 120 MT

QUALITY SPECIFICATIONS As per customer's specifications. The relevant Indian Standard Specifications are as follows : IS : 5175 - 1992 : Polypropylene Ropes (3-Strand Hawser-laid and 8-strand Plaited). IS : 9936 - 1992 : Manila, Nylon, Polyester and Polypropylene Ropes for Marine

Purpose - Guide on Equivalence.

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. 65 mm Extruder, with 7.5 KW D.C. Whole Unit 23,00,000

Drive having speed range 30-70 rpm, T-Die, S.S.

Quench Tank with arrangement for water circulation,

Wiper Bars, Nip Rollers, Idle Rollers, Slow Godet with 4

Rollers, Orientation Hot-air Oven, Fast Godet with 6 Rollers,

Fibrillation Godet with 2.75 KW D.C. Motor, Winding

Head driven by TorqueMotors.

2. Single Drum Dry Colour Tumbling 1 60,000

Mixer of capacity 25 Kgs. Per batch and having

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a maximum production capacity of about 100

Kgs.per hour, with 1 HP AC Motor & accessories.

3. Rope making machine, suitable for 1 8,50,000

making 3-Strand ropes of 3 mm to 6 mm diameter,

with Bobbins, 10 HP D.C. motor with starter, rectifier

panel,gears, tools & accessories.

4. Rope making machine, suitable for 1 7,00,000

making 3-Strand ropes of 2 mm to 5 mm diameter,

with Bobbins, 5 HP DC motor with starter, rectifier

panel,gears, tools & accessories.

5. Other Miscellaneous equipments, 90,000

Tools, Sparies, Accessories, Inspection &

Testing instruments etc.

Total 40,00,000

MANAFACTURING PROCESS

The process consists of the following operations :

1. Feeding of virgin Polypropylene granules along with master batch and other

additives in to an Extruder.

2. Extrusion of the Polypropylene mix in the form of a tape film through the T-Die.

3. The tapes are taken downwards into a quench bath from the T-Die to obtain a film

of uniform thickness.

4. After leaving the quench bath, the tapes are passed through a slow Godet rollers,

and a pulling roll system.

5. Then the tapes are passed through an Orientation oven, where the film is

stretched under correct conditions of temperature.

6. A second Godet, located immediately after the oven and adjusted to run at a

controlled higher speed than the first Godet stretches the tape films to provide the

necessary orientation.

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7. The tapes are then passed through the Pattern Fibrillation system, which consists

of a needle roller, which impregnates the holes in the film, and a plain Godet,

which helps, in the forming of the cross-section of the required denier.

8. From this unit the tapes are wound onto Bobbins by the Winder.

9. The fibrillated tapes are then twisted in a twisting machine to form ropes of the

desired sizes.

RAW MATERIALS

For MTS 120

Qty-MTs Rate/MT Value Rs lakhs

Polypropylene 126 70000 88.20

Colour materbatch 3.30 100000 3.30

Butyl Stearate 0.42 120000 0.50

ESBO 0.42 60000 0.25

Zinc Stearate 0.42 50000 0.21

TOTAL 92.46

Packing materials 120.00 1500 1.80

LOCATION LAND AND BUILDING

Built up area-Sq.ft 3000

Rent p.m.-Rs per .5 per sq.ft 15000

Advance-10 months.Rs 150000

UTILITIES

Three phase- KW 52.00

Power charges Rs.lakhs p.a 14.82

For process-Litres per day 5000

For human consumption-litres/day 200

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MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 6 5000 30000

Unskilled 6 3000 18000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 69000

Add benefits 20% 13800

Total per month 82800

TOTAL PER ANNUM-Rs. lakhs 9.94

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 120 MT of different sizes of PP Fibrillated Fishnet

Ropes per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.120.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.14.82 lakh per annum at 100%

Wages and salaries Rs. 9.94 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual increase

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30,000 per month with 5% annual increase

Interest on Term loan 11% per annum

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Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS:

1. M/s. Kolstite Machine Fabrik Ltd., P.B. NO. 11902, Off Veera Desai Road

Mumbai - 400 053.

2. M/s. Services Unlimited, Plot No. 555, IV Phase, Peenya Industrial Estate

Bangalore - 560 058.

3. M/s. Brimco Machinery Corpn., Brimco House, 55, Govt. Indl. Estate, Kandivilli (West)

Mumbai- 400 067.

4. M/s. Synmach, B-47, Industrial Estate, Bangalore - 560 044.

5. M/s. Machindra Rope & Thread Company, Unit No. 35, First Floor, Bindal Industrial Estate

Kurla-Andheri Road, Sakinaka, Mumbai - 400 072.

6. M/s. UMW Industries Ltd., Post Box No. 2038, Bharathi Nagar, Ganapathy,

Coimbatore - 641 006.

7. M/s. BJG Technocrafts Pvt. Ltd., 213, Heera Panna Industrial Estate, Off Aarey Road

Gorgeon (East), Mumbai - 400 063.

8. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

9. Europack Machines India Pvt Lts, 52, Bindal Industrial Estate, Sakinaka, Andhari

East, Mumbai – 500 072.

10. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad– 82415,

11. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad –121005.

12. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

Ahmedabad – 382445

13. HMT International Ltd, 59, HMT Bhavan, Bellary Road, Bangalore – 560 032.

RAW MATERIALS

(a) POLYPROPYLENE

1. M/s Indian Petrochemical Corpn Ltd, Jawahar Nagar, Vadodara Dist. Ahmedabad - 391 346.

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2. M/s. Reliance Industries Ltd, Petrochemicals Division, 501, Anna Salai, Chennai - 600 018.

3. M/s. Ram-Nath & Co, 38, Cathedral Road, Chennai - 600 086.

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 1.50

Plant & Machinery 40.00

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 2.15

46.15

2. MEANS OF FINANCE

Capital 16.15

Term Loan 30.00

46.15

Term Loan is assumed at 75% of the Machinery value.

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-MTs 120 120 120 120 120

Utilisation 60% 70% 80% 80% 80%

Production/Sales-MTs 72 84 96 96 96

Selling Price per MT-Rs. 1.20 Lakhs

Sales Value (Rs. lakhs) 86.40 100.80 115.20 115.20 115.20

Raw Materials 55.48 64.73 73.97 73.97 73.97

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Packing Materials 1.08 1.26 1.44 1.44 1.44

Power 8.89 10.37 11.86 11.86 11.86

Wages & Salaries 9.94 10.43 10.95 11.50 12.08

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 6.00 5.10 4.34 3.68 3.13

Cost of Production 81.99 92.55 103.29 103.25 103.36

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 3.30 2.89 2.06 1.24 0.41

Interest on Working Capital 0.84 0.84 0.84 0.84 0.84

Total 89.73 100.06 110.16 109.50 108.99

Profit Before Tax -3.33 0.74 5.05 5.70 6.21

Provision for tax -1.12 0.25 1.70 1.92 2.09

Profit After Tax -2.21 0.49 3.35 3.78 4.12

Add: Depreciation 6.00 5.10 4.34 3.68 3.13

Cash Accruals 3.79 5.59 7.68 7.46 7.25

Repayment of Term loan 0.00 7.50 7.50 7.50 7.50

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 2.31 25% 0.58 1.73

Consumables 2.00 0.18 25% 0.05 0.13

Finished goods 0.50 3.42 25% 0.86 2.56

Debtors 0.50 3.60 10% 0.36 3.24

Expenses 1.00 0.30 100% 0.30 0.00

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9.81 2.15 7.66

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 3.35

Sales

=

115.20

3%

Profit before Interest and Tax 7.95

Total Investment

=

53.81

15%

Profit after Tax 3.35

Promoters Capital

=

16.15

21%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 10.95

Repairs & Maintenance 0.73

Depreciation 4.34

Admin. & General expenses 3.97

Interest on TL 2.06

22.05

Profit Before Tax (P) 5.05

FC x 100 22.05 80 BEL =

FC +P

=

27.09

x

100

x 100

65% of installed capacity

Or Production volume 78 MTs or Sales Value of Rs.93.60 lacs

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HDPE MONO FILAMENT YARN

INTRODUCTION

The HDPE monofilament yarn is used for the manufacturing of ropes, mosquito

nets, fishnets, yarns etc. The monofilament may generally be produced in

diameters ranging from 0.15 mm to 1.5 mm, the main requirement being for

thinner size (from 0.15 mm to 0.5 mm) for weaving and twisting purpose.

Polypropylene, high-density polyethylene, nylon can all be extruded into

monofilaments and are likely to enjoy demand.

MARKET

The potential market for High Density Polyethylene/ Polypropylene monofilament

is very large. HDPE / PP Monofilament has good tensile strength, is light in

weight, does not absorb water and does not rot. The typical application for

monofilament yarn is for ropes and nets for deep sea fishing and navigation.

Other important applications are for sport nets, screen and filter tissues, and

coverings for garden furniture, mosquito nets, fly nets, tissues for camp-beds and

for car seats protection covers.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

HDPE

Monofilament

yarn

50 Kgs 8 400 Kgs 120 MTs

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PLANT AND MACHINERY

Sl.No Items Qty Rs. in

Lakhs

1 50 mm extruder with screw suitable

for HDPE/PP fitted with electrical

motor and variable speed drive,

reduction gear box & electrical

control cabinet complete with

stretching and stabilising equipment

2 Hand winder unit

3 Additional dies- size for monofilaments

4 Centrifugal water pump overhead tank

5 Hot water bath for orientation of HDPE monofilament

6 Testing & Quality control instruments such

as micrometer, tensile elongation testing

machine, shore hardness tester, weighing

machines etc.

Total 20.00

MANUFACTURING PROCESS

In the monofilament extrusion process which is a continuous process, plastic

cords in multiple numbers are extruded from the extruder die, vertically

downward and then drawn through a water bath where they freeze. Immediately

afterwards these are stretched and oriented in boiling water/hot air oven, and if

necessary are subsequently stabilized in hot air oven. Finally these are wound

individually on bobbins or alternatively collected on spools.

In the monofilament extrusion, generally the diameter of the die-bores should be

3 to 4 times the diameter of the finished filament required, to allow for draw down

during orientation. The stretching ratio for HDPE/PP filament is generally 1:7 to

1:8 but if a very high tenacity value is required this may be increased upto 1:10 or

1:11.

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RAW MATERIALS

For-MTs 120

Qty-MTs Rate/MT Value Rs. Lakhs

HDPE 126.00 58000 73.08

Master batches, colours 3.60

TOTAL 76.68

Packing materials 120.00 1000 1.20

LAND AND BULIDINGS

Built up area-Sq.ft 2000

Rent p.m.-Rs per .5 per sq.ft 10000

Advance-10 months. Rs 100000

UTILITIES

POWER

Three phase- KW 40.00

Power charges Rs.lakhs p.a 9.12

For process-Litres per day 0

For human consumption-

litres/day

200

MANPOWER

Monthly wages Total

Supervisor 1 8000 8000

Skilled 2 5000 10000

Unskilled 4 3000 12000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 43000

Add benefits 20% 8600

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Total per month 51600

TOTAL PER ANNUM-Rs. lakhs 6.19

SCHEDULE OF IMPLEMENTATION

After the financing arrangements are made and the premises are made available

the project can be implemented in 3 months.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 120 MT of HDPE/PP Monofilament per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.105.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.9.12 lakh per annum at 100%

Wages and salaries Rs. 6.19 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

increase

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS:

1. M/s Kolstite Industries, P.B. NO. 7368, 31 Shah Industrial Estate, Andheri (West),

Mumbai.

2. M/s R. H. Windsor (I) Ltd, E-6, U-Road, Thana Industrial Estate, Thana (MS)

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3. M/s Brimco Machinery Corpn, Brimco House, 55, Govt. Indl. Estate, Kandivilli

(West), Mumbai.

4. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

5. Europack Machines India Pvt Lts, 52, Bindal Industrial Estate, Sakinaka,

Andhari East, Mumbai – 500 072.

6. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

7. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad -121005.

8. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate,

Phase 1 Valva, Ahmedabad – 382445

9. HMT International Ltd, 59, HMT Bhavan, Bellary Road, Bangalore – 560032.

RAW MATERIAL

(a) POLYPROPYLENE

1. M/s Indian Petrochemical Corpn. Ltd, Jawahar Nagar, Baroda, Ahmedabad.

(b) HIGH DENSITY POLYETHYLENE

1. M/s Polyolifin (I) Ltd, Nievelli House, Curreing Bhoy Road, Ballard Estate, Bombay.

2. M/s Hoechst Dyes & Chemicals Ltd, Plastic Division 3/1, Asaf Ali Road,

New Delhi - 110 002.

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 1.00

Plant & Machinery 20.00

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 1.78

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25.28

2. MEANS OF FINANCE

Capital 10.28

Term Loan 15.00

25.28

Term Loan amount is assumed at 75% value of the Machinery.

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-MTs 120 120 120 120 120

Utilisation 60% 70% 80% 80% 80%

Production/Sales-lakhs 72 84 96 96 96

Selling Price per lakh Nos-Rs. 1.05

Sales Value (Rs. lakhs) 75.60 88.20 100.80 100.80 100.80

Raw Materials 46.01 53.68 61.34 61.34 61.34

Packing Materials 0.72 0.84 0.96 0.96 0.96

Power 5.47 6.38 7.30 7.30 7.30

Wages & Salaries 6.19 6.50 6.83 7.17 7.53

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 3.00 2.55 2.17 1.84 1.57

Cost of

Production

61.99 70.61 79.33 79.41 79.58

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 1.65 1.44 1.03 0.62 0.21

Interest on Working Capital 0.69 0.69 0.69 0.69 0.69

Total 67.93 76.52 85.02 84.89 84.86

Profit Before Tax 7.67 11.68 15.78 15.91 15.94

Provision for tax 2.58 3.93 5.31 5.35 5.37

Profit After Tax 5.09 7.75 10.47 10.56 10.57

Add: Depreciation 3.00 2.55 2.17 1.84 1.57

Cash Accruals 8.09 10.30 12.64 12.40 12.14

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Repayment of Term loan 0.00 3.75 3.75 3.75 3.75

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 1.92 25% 0.48 1.44

Consumables 2.00 0.12 25% 0.03 0.09

Finished goods 0.50 2.58 25% 0.65 1.93

Debtors 0.50 3.15 10% 0.32 2.83

Expenses 1.00 0.30 100% 0.30 0.00

8.07 1.78 6.29

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 10.47

Sales

=

100.80

10%

Profit before Interest and Tax 17.50

Total Investment

=

31.57

55%

Profit after Tax 10.47

Promoters Capital

=

10.28

102%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages &

Salaries

6.83

Repairs & Maintenance 0.73

Depreciation 2.17

Admin. & General expenses 3.97

Interest on TL 1.03

14.73

Profit Before Tax (P) 15.78

FC x 100 14.73 80 BEL =

FC +P

=

30.51

x

100

x 100

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39% of installed capacity or

Production volume 46.8 MTs

or Sales Value Rs.49.14 lacs

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HM HDPE FILMS AND BAGS

INTRODUCTION

High molecular high density Polyethylene (HM HDPE) film which is popularly known as

paper-like film or tissue film. It is one of the most promising developments in the field of

HDPE applications, and is of recent origin. HM HDPE film is characterised by high

strength properties and outstanding toughness. In appearance, it resembles paper. It is

non-waxy and has got advantages of both paper and conventional plastic films. The

substitution of LDPE film by HM HDPE film is desirable due to cost advantage, which

results from the fact that on an average, the paper like film chosen has only half the

thickness of the LDPE film for comparable applications. This is due to better mechanical

strength and barrier properties of the tissue film.

HM HDPE film is mainly used for packaging purposes in various forms, such as

continuous rolls, or as Carry bags' or shopping bags, pouches, liners etc. It is now being

widely used for producing Carry bags that are fast replacing the conventional paper

bags for shopping purposes. The Carry bags are now being extensively used for

carrying or transporting of various items such as groceries, fruits & vegetables, books &

stationery items, gift articles, food packets, medicines, and a variety of other items. In

tea packaging, the HM HDPE film is used as a liner due to its good barrier properties

and inertness.

These films and other films such as PP, LDPE, LLDPE, PVC, EVA etc., are produced

by EXRUSION BLOW PROCESS.

MARKET

Indian Petrochemical industry is one of the fastest growing sectors of the economy. The

petrochemical sector has an average growth at a rate of 13% per annum, which is more

than double the growth of GDP. The usage of polymers for injection moulding and other

components used in engineering plastics is bound to increase with the increase in

production of automobile vehicles, machinery and other electrical machinery and

consumer durables.

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The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our

daily life.

Constant developments in polymer technology, processing machinery, know how and

cost effective production is fast replacing plastics in every segment from its conventional

materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

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Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go up to

7.7 kg by the year 2007. While it is true that our consumption is below the world average

of 17 kg, per capita figures should be viewed in the context of our large population;

sometimes per capita figures are useful only for trend analysis and not in absolute

terms.

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INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Plastic carry

bags

10 kgs 16 160 kgs 48 MT

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. 38MM HM HDPE Blown Film Plant, Whole Unit 3,00,,000

with 7.5 HP AC Motor, Gear Box, Nip Roller driven by

1 HP DC Motor with suitable Gear Box,1 HP Blower,

1HP Air Compressor, 4 Zones Pyrometer Control, 1 HP

two station winder with 450 mm Nip Roller; the plant capable

of producing 6-12 Kgs/Hour of Layflat film, of minimum 40

Guage thickness.

2. 18" Automatic Polythene Bag Whole Unit 70,000

Cutting & Sealing M/c. with 1 HP AC Main motor,

Back Roller Roll stand, Reversible Double Line,

Single and Double Sealer Arrangement,

Machine with Electricals.

3. Static Charge Eliminator 1 10,000

4. Miscellaneous Tools & Equipments 15,000

like Weighing Scale, Measuring Instruments etc.

Total 4,00,000

MANAFACTURING PROCESS

The film suitable for the manufacture of bags is produced in form of a tube by the blown

film extrusion process. In this process, a tube is extruded from an annular die and is

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5

inflated by air pressure to the desired diameter, cooled, collapsed at the nip rolls(also

called pinch rolls) and finally wound in the form of rolls.

HM HDPE granules are fed into the hopper of the extruder where it is heated in the

barrels to form a molten resin, which flows around a mandrel inside the die and is

formed into a tube. The die opening normally varies between 4mm to 6.5 mm. The die is

provided with a passage to feed compressed air into the tube. The tube is usually

extruded vertically upward and air is introduced through the centre of the mandrel to

inflate the tube to the desired bubble size. The entrapped air is maintained in the bubble

by the die at one end and by a suitable wind up mechanism at the other end. The bubble

is hauled away at a rate of speed generally greater than the polymer flow, thus orienting

the film in the machine direction. As the bubble approaches the nip roll above the die, it

is converged by wood slats, a rack of rollers or similar mechanism to change the shape

from a tubular bubble to a flat two layer sheet(lay flat tube).

The draw down ratio is the ratio of the sectional area of the die opening to that of the

bubble. In practice, this is controlled by the die opening and nip roll speed. Blow up

ratio refers to the ratio of diameter of the bubble to that of the die. A higher blow ratio

results in a tougher film. Commonly adopted blow up ratio for extrusion blown film is

between 2 and 3.

The extrusion blown process offers a variety of advantages such as follows :

(a) No edge trim is required as in case of a flat film.

(b) By controlling the volume of air in the tube, a certain range of film width can be

produced from a single die without adjustment.

(c) Wide width film can be produced by slitting one side of the collapsed tube and

unfolding the same.

(d) Bags may be produced only by bottom sealing of the tube and no side sealing is

required. This also contributes to faster production rates and better appearance of the

bags.

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After making lay flat extrusion film roll, it is subjected to surface treatment before

printing to make its surface ink receptive. There are different methods of surface

treatment. One of the most common is the corona discharge. In this process, the

surface of the film to be printed is passed through a high energy electronic corona

discharge formed by an electrode and an earthed roller. The corona discharge units

operate on normal mains voltage and generate sufficient power at high frequency. The

intensity of the corona discharge is controlled by adjustment of the electrical flux applied

at the electrode.

After treating the film surface, the subsequent operations are printing, cutting and

sealing to make bags of required size and shape.

In the present report; only manufacture of plain Carry Bags is considered.

RAW MATERIALS

For MT 48

Qty-MTs Rate/MT Value

Rs lakhs

HM-DPE granules 50 64000 32.26

Misc additives 1.20

TOTAL 33.46

Packing materials 48 1000.00 0.48

LOCATION LAND AND BUILDING

Built up area-Sq.ft 1500

Rent p.m.-Rs per .5 per sq.ft 7500

Advance-10 months.Rs 75000

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7

UTILITIES

Power & Water

Three phase- KW 20.00

Power charges Rs.lakhs p.a 4.56

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 3 5000 15000

Unskilled 3 3000 9000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 1 2000 2000

sub total 43000

Add benefits 20% 8600

Total per month 51600

TOTAL PER ANNUM-Rs. lakhs 6.19

SCHEDULE OF IMPLEMENTATION

After making the financial arrangements to finance the project, the project can be

implemented within three months period.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 48 Metric Tonnes of Carry Bags per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

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Year-3 onwards- 80%

Selling price Rs.1.20 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.4.56 lakhs per annum at 100%

Wages and salaries Rs. 6.19 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS:

1. M/s. Brimco Plastic Machinery Corpn. Ltd., 55, Govt. Industrial Estate,

Kandivilli (E), Mumbai-400 006.

2. M/s. Faroni Enterprises,10, Anderson Street, Chennai - 600 001.

3. M/s. Neptune Plastics & Metal Industries,18, R.N. Mukherjee Road(7 th Floor)

Calcutta - 700 001.

4. M/s. Jolite Industries, No.7 Meenambal Salai, Kaviyarasu Kannadasan Nagar

Chennai - 600 051.

5. M/s. Golden Engineering Industries, 8797, Shidipura Crossing, Rani Jhansi Road

New Delhi- 110 055.

6. M/s. Kolsite Machine Fabrik Ltd., P.O. Box No. 11902, Off Veeradesai Road

Mumbai - 400 053.

7. M/s. Boolani Engineering Corpn., 402, Veer Savarkar Road, Prabhadevi Indl. Estate,

Mumbai-400 025.

8. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

9. Europack Machines India Pvt Lts, 52 Bindal Industrial Estate, Sakinaka, Andhari

East, Mumbai – 500 072.

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9

10. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

11. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad-121005.

12 Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

Ahmedabad – 382445

13. HMT International Ltd, 59 HMt Bhavan, Bellary Road, Bangalore – 560 032.

LIST OF RAW MATERIAL SUPPLIERS

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641006,

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079,

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastIcs, 57/2, Thirupalli Street – 79,

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

5 Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 0.75

Plant & Machinery 4.00

Other Misc. assets 0.50

Pre-Operative expenses 1.00

Margin for WC 0.99

7.24

2. MEANS OF FINANCE

Capital 4.24

Term Loan 3.00

7.24

Term Loan is assumed at 75% of the Machinery value.

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3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-MTs 48 48 48 48 48

Utilisation 60% 70% 80% 80% 80%

Production/Sales-MTs 29 34 38 38 38

Selling Price per MT-Rs. 1.2

Sales Value (Rs. lakhs) 34.80 40.80 45.60 45.60 45.60

Raw Materials 20.07 23.42 26.76 26.76 26.76

Packing Materials 0.29 0.34 0.38 0.38 0.38

Power 2.74 3.19 3.65 3.65 3.65

Wages & Salaries 6.19 6.50 6.83 7.17 7.53

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 0.60 0.51 0.43 0.37 0.31

Cost of Production 30.49 34.62 38.78 39.13 39.51

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 0.33 0.29 0.21 0.12 0.04

Interest on Working Capital 0.32 0.32 0.32 0.32 0.32

Total 34.74 39.01 43.28 43.74 44.25

Profit Before Tax

0.06 1.79 2.32 1.86 1.35

Provision for tax 0.00 0.60 0.78 0.63 0.45

Profit After Tax 0.06 1.19 1.54 1.23 0.90

Add: Depreciation 0.60 0.51 0.43 0.37 0.31

Cash Accruals 0.66 1.70 1.97 1.60 1.21

Repayment of Term loan

0.00 0.75 0.75 0.75 0.75

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11

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 0.84 25% 0.21 0.63

Consumables 2.00 0.05 25% 0.01 0.04

Finished goods 0.50 1.27 25% 0.32 0.95

Debtors 0.50 1.45 10% 0.15 1.30

Expenses 1.00 0.30 100% 0.30 0.00

3.91 0.99 2.92

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 1.54

Sales

=

45.60

3%

Profit before Interest and Tax 2.85

Total Investment

=

10.16

28%

Profit after Tax 1.54

Promoters Capital

=

4.24

36%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 6.83

Repairs & Maintenance 0.73

Depreciation 0.43

Admin. & General expenses 3.97

Interest on TL 0.21

12.17

Profit Before Tax (P) 2.32

FC x 100 12.17 80 BEL =

FC +P

=

14.49

x

100

x 100

67% Installed Capacity

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1

PLASTIC COLLAPSIBLE TUBES

INTRODUCTION

Plastic collapsible tube are used to pack several items which were hitherto packed in

Aluminium collapsible tubes. The classic example is ointments, toothpastes, gums etc.

There are various methods by which polythene collapsible tubes can be manufactured.

One is extruding in the form of a continuous hose like tubing which is then cut to desired

length. In another process injection moulded heads are then joined to the tubes.

Another conventional method practiced for production of collapsible tube is blow

moulding technique. The present scheme is based on press blower - moulding machine

which produces one piece of non-welded plastic tube with injection moulding head and

blow moulded body.

MARKET

Indian Petrochemical industry is one of the fastest growing sectors of the economy. The

petrochemical sector has an average gowth at a rate of 13% per annum, which is more

than double the growth of GDP. The usage of polymers for injection moulding and other

components used in engineering plastics is bound to increase with the increase in

production of automobile vehicles, machinery and other electrical machinery and

consumer durables.

The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our

daily life.

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2

Constant development in polymer technology, processing machinery, know how and

cost effective production is fast replacing plastics in every segment from its conventional

materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

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ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go up to

7.7 kg by the year 2007. While it is true that our consumption is below the world average

of 17 kg, per capita figures should be viewed in the context of our large population;

sometimes per capita figures are useful only for trend analysis and not in absolute

terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Plastic

collapsible

tubes

900 nos 8 7200 nos 21.60 Lakhs

Nos

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4

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

A. Production Unit :

1. Fully automatic, mechanically 1 71,50,000

controlled tubes moulding press

blower machine (Imported)

2. Heat sealing machine semi- 1 45,000

automatic, vertical, hydraulically operated

3. Injection moulding machine (20 gms) 1 1,65,000

fully automatic (vertical plunger type)

Direct locking

4. Overhead water tank along with 1 35,000

pump for recycling of water

B. Maintenance Unit :

Small Hand tools, oiling and 35,000

greasing equipments

C. Testing and Quality Control :

Weighing balance (chemicals), 55,000

micrometer, calipers, drop test arrangement

for impact test, etc.

D. Moulds & Dies 3,15,000

Total 78,00,000

MANAFACTURING PROCESS

The granules are fed in the hopper of automatic press blower moulding machine. The

granules are pre-heated in three heating zones and plasticised stock is then transferred

to nozzle head which is also kept hot. The amount of plastic required for tube is then

injected through a ring nozzle against the injection mould holding the tube head and the

thread mould. The injection mould with the formed tube head then moves upward and

so draws a hose, with uniform wall thickness of plastic melt fed from ring nozzle. This

tube is then blown into a water cooled mould, the inner surface of which corresponds to

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5

the desired finished shape of the tube. A gripper device takes the cooled tubes out of

the mould and they are then fed by a topper to a cutting unit. Here the bottom surplus is

removed and the tube trimmed to the finish.

Another device places the tubes on relating mandrels on an indexing turret, ready for

printing. The tubes are then made to pass through a high tension field pre-treatment,

and then through printing stations for three colour prints and are lacquered over at a

further station. Following this treatment, the tubes are then carried by a chain conveyor

to the counter flow hot air dryer, from where they emerge ready for filling.

RAW MATERIALS

For pieces 2160000

Qty-MTs Rate/MT Value Rs. Lakhs

Polyethylene 36 70000 25.20

High Impact Polystyrene 12 73000 8.76

Printing ink 2.40

TOTAL 36.36

Packing materials 2160000 0.02 0.43

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2000

Rent p.m.-Rs per .5 per sq.ft 10000

Advance-10 months. Rs 100000

UTILITIES

Powers & Fuels

Three phase- KW 40.00

Power charges Rs. lakhs p.a 9.12

For process-Litres per day 0

For human consumption-litres/day 200

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MANPOWER

Monthly wages Total

Supervisor 1 8000 8000

Skilled 4 5000 20000

Unskilled 5 3000 15000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 56000

Add benefits 20% 11200

Total per month 67200

TOTAL PER ANNUM-Rs. lakhs 8.06

SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalised the project can be implemented in three

months time.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 21.60 lakhs tubes/annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.4.50 per piece

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.9.12 lakh per annum at 100%

Wages and salaries Rs. 8.06 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

increase

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7

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS:

1. M/s. Ossberger - Tubbinen Fabric-Abt, Kunts Heffmachinen 8832,

Weissen, BURG/BAZERNM, P. O. Box 425, West Germany.

2. M/s Starline Engineering Services, Ideal Indl. Estate, S. Bapat Marg,

Bombay-400 013.

3. M/s Plastopack & Co., 15, Sashibushan Basak Lane, Calcutta-700 036.

4. M/s R & K Enterprises, 829, GIDC, Makarpura, Baroda-390 010.

5. M/s Niranjan Plastics,19/7, Botwala Building, Mahim, Bombay-400 016.

6. M/s Klockner Windsor (I) Ltd, U-6, U-2 Road, Wage Industrial Estate,

Bombay-400 604.

7. M/s Brimco Plastic Machinery (P) Ltd, 55, Brimco House, Govt. Indl. Estate,

Bombay-400 067.

8. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

9. Europack Machines India Pvt Lts, 52, Bindal Industrial Estate, Sakinaka, Andhari

East, Mumbai – 500 072.

10. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher,

Ahmedabad – 382415,

11. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005.

12. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1

Valva, Ahmedabad – 382445

13. HMT International Ltd, 59, HMT Bhavan, Bellary Road, Bangalore – 560032.

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8

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs.lakhs]

Land & Building (Advance) 1.00

Plant & Machinery 78.00

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 1.28

82.78

2. MEANS OF FINANCE

Capital 24.28

Term Loan 58.50

82.78

Term Loan amount is assumed at 75% value of the Machinery.

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-Nos 2160000 2160000 2160000 2160000 2160000

Utilisation 60% 70% 80% 80% 80%

Production/Sales-Nos 1296000 1512000 1728000 1728000 1728000

Selling Price per Piece-Rs. 4.5

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9

Sales Value (Rs. lakhs) 58.32 68.04 77.76 77.76 77.76

Raw Materials 21.82 25.45 29.09 29.09 29.09

Packing Materials 0.26 0.30 0.35 0.35 0.35

Power 5.47 6.38 7.30 7.30 7.30

Wages & Salaries 8.06 8.47 8.89 9.33 9.80

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 11.70 9.95 8.45 7.19 6.11

Cost of Production 47.91 51.21 54.81 54.06 53.53

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 6.44 5.63 4.02 2.41 0.80

Interest on Working Capital 0.48 0.48 0.48 0.48 0.48

Total 58.43 61.10 63.28 61.12 59.19

Profit Before Tax 0.11 6.94 14.48 16.64 18.57

Provision for tax 0.00 2.34 4.87 5.60 6.25

Profit After Tax 0.01 4.60 9.61 11.04 12.32

Add: Depreciation 11.70 9.95 8.45 7.19 6.11

Cash Accruals 11.69 14.55 18.06 18.23 18.43

Repayment of Term loan 0.00 14.63 14.63 14.63 14.61

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 0.91 25% 0.23 0.68

Consumables 2.00 0.04 25% 0.01 0.03

Finished goods 0.50 2.00 25% 0.50 1.50

Debtors 0.50 2.43 10% 0.24 2.19

Expenses 1.00 0.30 100% 0.30 0.00

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10

5.68 1.28 4.40

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 9.61

Sales

=

77.76

12%

Profit before Interest and Tax 18.98

Total Investment

=

87.18

22%

Profit after Tax 9.61

Promoters Capital

=

24.28

40%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 8.89

Repairs & Maintenance 0.73

Depreciation 8.45

Admin. & General expenses 3.97

Interest on TL 4.02

26.06

Profit Before Tax (P) 14.48

FC x 100 26.06 80 BEL =

FC +P

=

40.54

x

100

x 100

51% of installed capacity

Or production volume 1101600 pieces or Sales value of Rs.49.57 lacs

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1

PLASTIC COMBS INTRODUCTION

Plastic combs are one of the most frequently consumed in households by individuals.

They are fast replaced. There are made by the thermoplastic sheets or by injection

moulding of thermoplastic materials. The cellulose nitrate sheets process was adopted

for making combs earlier. Considering highly inflammable characteristics of C.N. sheets

and due to higher cost of production, injection moulding process are now preferred over

the sheet cutting process for the manufacture of combs.

Various raw materials like polypropylene, cellulose acetate, cellulose acetate butyrate,

high impact polystyrenes can be used for the manufacture of combs by injection

moulding technique. However, the estimates in this scheme have been drawn on the

basis of polypropylene which is most widely used for this application. The raw materials

as well as the machinery and equipment required are indigenously available.

MARKET

Indian Petrochemical industry is one of the fastest growing sectors of the economy. The

petrochemical sector has an average growth at a rate of 13% per annum, which is more

than double the growth of GDP. The usage of polymers for injection moulding and other

components used in engineering plastics is bound to increase with the increase in

production of automobile vehicles, machinery and other electrical machinery and

consumer durables.

The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

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2

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our

daily life.

Constant development in polymer technology, processing machinery, know how and

cost effective production is fast replacing plastics in every segment from its conventional

materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

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PS 246 402

PET Bottles 45 100

PET Film 55 100 Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go up to

7.7 kg by the year 2007. While it is true that our consumption is below the world average

of 17 kg, per capita figures should be viewed in the context of our large population;

sometimes per capita figures are useful only for trend analysis and not in absolute

terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

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4

Plastic combs 1500 nos 8 12000 Nos 36 Lakhs Nos.

(Average weight

20 Grams each)

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

Production Unit :

1. 120 gms. fully automatic injection 1 7,50,000

moulding machine complete with all

accessories. Average capacity 35

Kg. per hour, fitted with motor of 10 H. P.

2. 12" Scrap grinder with 5 H.P. motor 1 65,000

3. Buffing, Polishing and Hot 1 85,000

stamping machine

4. Moulds 4 sets 1,90,000

Maintenance Unit :

Small hand tools, Greasing cooling 50,000

equipments

Testing & Quality Control :

Testing instruments such as micrometer, 60,000

balance etc.

Total 12,00,000

MANAFACTURING PROCESS

The plastic material is fed into the hopper of the injection-moulding machine, which

essentially has an injection unit and multicavity mould systems. The mould is held in-

between the two platens which are kept closed by the locking pressure and the material

which gets plasticised in the barrel, is injected under higher pressure into the mould

which results in a moulded article i.e. comb. Removing the injection feed etc then

finishes the combs.

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5

Then the second stage processing operations viz. buffing, polishing, hot foil printing are

carried out on the combs. These are then kept inside plastic waterproof paper covers

and packed.

RAW MATERIALS

For pieces 3600000

Qty-MTs Rate/MT Value Rs. lakhs

Polypropylene granules 72 70000 50.40

Moulding releasing agent 1.20

Colours, pigments 1.20

TOTAL 52.80

Packing materials 3600000 0.05 1.80

LOCATION LAND AND BUILDING

Built up area-Sq.ft 1200

Rent p.m.-Rs per .5 per sq.ft 6000

Advance-10 months Rs 60000

UTILITIES

Three phase- KW 16.00

Power charges Rs. lakhs p.a 1.82

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 2 5000 10000

Unskilled 5 3000 15000

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Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 46000

Add benefits 20% 9200

Total per month 55200

TOTAL PER ANNUM-Rs. lakhs 6.62

SCHEDULE OF IMPLEMENTATION

After making the financial arrangements to finance the project, the project can be

implemented within three months period.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 36,00,000 nos. of combs per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.2.25 per piece

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.1.82 lakh per annum at 100%

Wages and salaries Rs. 6.62 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

increase

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

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Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS:

1. M/s. Brimco Plastic Machinery Corpn. Ltd., 55, Govt. Industrial Estate,

Kandivilli (E), Mumbai-400 006.

2. M/s. Faroni Enterprises,10, Anderson Street, Chennai - 600 001.

3. M/s. Neptune Plastics & Metal Industries,18, R.N. Mukherjee Road(7 th Floor)

Calcutta - 700 001.

4. M/s. Jolite Industries, No.7 Meenambal Salai, Kaviyarasu Kannadasan Nagar

Chennai - 600 051.

5. M/s. Golden Engineering Industries, 8797, Shidipura Crossing, Rani Jhansi Road

New Delhi- 110 055.

6. M/s. Kolsite Machine Fabrik Ltd., P.O. Box No. 11902, Off Veeradesai Road

Mumbai - 400 053.

7. M/s. Boolani Engineering Corpn., 402, Veer Savarkar Road, Prabhadevi Indl. Estate,

Bombay-400 025.

8. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

9. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari East,

Mumbai – 500 072.

10. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

11. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005.

12. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

Ahmedabad – 382445

13. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

LIST OF RAW MATERIAL SUPPLIERS:

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641006,

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079,

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastIcs, 57/2, Thirupalli Street – 79,

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

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6 Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

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FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 0.60

Plant & Machinery 12.00

Other Misc. assets 0.50

Pre-Operative expenses 1.00

Margin for WC 1.33

15.43

2. MEANS OF FINANCE

Capital 6.43

Term Loan 9.00

15.43

Term Loan is assumed at 75% of the Machinery value

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-Nos 3600000 3600000 3600000 3600000 3600000

Utilisation 60% 70% 80% 80% 80%

Production/Sales-Nos 2160000 2520000 2880000 2880000 2880000

Selling Price per Piece-Rs. 2.25

Sales Value (Rs.lakhs) 48.60 56.70 64.80 64.80 64.80

Raw Materials 31.68 36.96 42.24 42.24 42.24

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Packing Materials 1.08 1.26 1.44 1.44 1.44

Power 1.09 1.28 1.46 1.46 1.46

Wages & Salaries 6.62 6.96 7.31 7.68 8.06

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 1.80 1.53 1.30 1.11 0.94

Cost of

Production

42.87 48.65 54.48 54.73 55.02

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 0.99 0.87 0.62 0.37 0.12

Interest on Working Capital 0.47 0.47 0.47 0.47 0.47

Total 47.93 53.77 59.54 59.74 59.99

Profit Before Tax

0.67 2.93 5.26 5.06 4.81

Provision for tax 0.22 0.99 1.77 1.70 1.62

Profit After Tax 0.45 1.94 3.49 3.36 3.19

Add: Depreciation 1.80 1.53 1.30 1.11 0.94

Cash Accruals 2.25 3.47 4.79 4.47 4.13

Repayment of Term loan 0.00 2.25 2.25 2.25 2.25

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 1.32 25% 0.33 0.99

Consumables 2.00 0.18 25% 0.05 0.13

Finished goods 0.50 1.79 25% 0.45 1.34

Debtors 0.50 2.03 10% 0.20 1.83

Expenses 1.00 0.30 100% 0.30 0.00

5.62 1.33 4.29

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5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 3.49

Sales

=

64.80

5%

Profit before Interest and Tax 6.35

Total Investment

=

19.72

32%

Profit after Tax 3.49

Promoters Capital

=

6.43

54%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs.lakhs]

Wages & Salaries 7.31

Repairs & Maintenance 0.73

Depreciation 1.30

Admin. & General expenses 3.97

Interest on TL 0.62

13.93

Profit Before Tax (P) 5.26

FC x 100 13.93 80 BEL =

FC +P

=

19.19

x

100

x 100

58% of installed capacity

Or Production volume 2088000 pieces

Or sales value of 46.98 lacs

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PLASTIC CRATES

INTRODUCTION

Plastic crates are used for storage, transportation and distribution and handling of

products. Previously wooden crates were used which are now being substituted by

HDPE and PP crates. The crates are manufactured by injection moulding process..

Injection moulded components are widely used automobile parts and accessories,

computer peripherals, telecommunication components, T.V. cabinets, gears, cones and

textile industry components, housings and parts in electronics and electrical industry.

Thermoplastic materials are being converted into injection moulded engineering

components.

Automatic injection moulding machines are preferred where precision moulding

requirements are high; where high production rate with minimum cycle time is required

and where the weight of the component injection moulded generally exceeds 150 gms,

which could not be injection moulded in semi-automatic machines.

MARKET

The plastic crates have the following advantages.

• Light weight and rigid as compared to wood and metal • Convenience and ease of handling

• Hygienic and non-toxic

• Space saving-stackable and Nestable

• Resistant to chemicals/soaps

• Anti-rusting

• Wide choice of shape, size and colours tailored for each end-use

• Withstands wide range of temperatures (-35 to 750C) and climatic conditions

encountered during service

• Environment friendly

• Longer service life as compared to wooden crates.

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Following types of crates are generally available in Market and are popular amongst

end-users.

a. Fully closed crates - with all surfaces of crates in solid except top.

b. Grilled crates - with all sidewalls grilled and bottom close.

c. Totally grilled crates - with all sides and bottom also grilled.

d. Crates with lids - a lid on top to protect the contents.

e. Folding crates - entire crate can be folded to a flat assembly to save space when

not in use.

f. Stacking and nesting crates - height of crate can be reduced when stored in

nesting positions.

g. Soft drink crates - these are available with partitions to separate bottles rattling

with each other.

h. Milk pouch crate.

i. Tetra pack crates.

j. Crates for handling PCB.

k. Bins - modified shape of crate so that contents can be removed from front without

unloading the bins stacked over it.

Sector Use

1.Soft drink industry Storage, handling, transport and distribution.

2.Milk and dairy products Handling, transport, distribution.

3.Fisheries, marine and Storage, handling, transport and meat products distribution.

4.Automobile industry Storage

5.Fruits and vegetable Storage, handling, transport.

6.Electronic and electricals Storage, handling.

7.Pharmaceuticals Storage, handling.

8.Agro-products Storage, handling

9.Yarn and textiles industry Storage, handling

10.Defense Sector Storage, handling of bombs

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Indian Petrochemical industry is one of the fastest growing sectors of the economy. The

petrochemical sector has o grown at a rate of 13% per annum, which is more than

double the growth of GDP. The usage of polymers for injection moulding and other

components used in engineering plastics is bound to increase with the increase in

production of automobile vehicles, machinery and other electrical machinery and

consumer durables.

INSTALLED CAPACITY

Product Installed capacity

per hour

No of working

hours per day

Capacity

per day

Capacity per annum

300 days per annum

Plastic crates 50 kgs 8 400 kg 120 MT

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. Automatic injection moulding 1 50,00,000

machine with accessories

(400 gms, screw type)

2. Scrap Grinders (cap. 40 Kg/hour) 1 1,10,000

3. Dry colour Mixer 1 1,00,000

4. Mould lifting equipment (2 MT cap.) 1 50,000

5. Water cooling arrangement 52,000

6. Weighing scale 1 16,000

7. Moulds 4 sets 10,00,000

Total 63,28,000

MANAFACTURING PROCESS

The plasticised and homogenised thermoplastic material is injected into a locked

(clamped) mould with sufficient injection speed and pressure. After the melt is cooled in

the mould, it is opened to remove the moulded articles. This is a cyclic process.

Automatic injection moulding machine is the basic machinery involved in this project.

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RAW MATERIALS

For MTs 120

Qty-MTs Rate/MT Value Rs. Lakhs

LDPE,HDPE 126 58000 73.08

Master batches & colour 4 100000 4.00

TOTAL 77.08

Packing materials 120.00 2000.00 2.40

LOCATION LAND AND BUILDING

Built up area-Sq.ft 4000

Rent p.m.-Rs per .5 per sq.ft 20000

Advance-10 months. Rs 200000

UTILITIES

Three phase- KW 100.00

Power charges Rs. lakhs p.a 22.80

For process-Litres per day 0

For human consumption - litres/day 200

MANPOWER

Monthly wages Total

Manager 1 10000 10000

Supervisor 1 8000 8000

Skilled 3 5000 15000

Unskilled 3 3000 9000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 55000

Add benefits 20% 11000

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Total per month 66000

TOTAL PER ANNUM-Rs. lakhs 7.92

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 120 MT of Plastic crates per annum.

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.125.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.22.80 lakhs per annum at 100%

Wages and salaries Rs. 7.92 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

increase every year

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS:

1. M/s. Brimco Plastic Machinery Corpn. Ltd., 55, Govt. Industrial Estate,

Kandivilli (E), Mumbai-400 006.

2. M/s. Faroni Enterprises,10, Anderson Street, Chennai - 600 001.

3. M/s. Neptune Plastics & Metal Industries,18, R.N. Mukherjee Road(7 th Floor)

Calcutta - 700 001.

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4. M/s. Jolite Industries, No.7 Meenambal Salai, Kaviyarasu Kannadasan Nagar

Chennai - 600 051.

5. M/s. Golden Engineering Industries, 8797, Shidipura Crossing, Rani Jhansi Road

New Delhi- 110 055.

6. M/s. Kolsite Machine Fabrik Ltd., P.O. Box No. 11902, Off Veeradesai Road

Mumbai - 400 053.

7. M/s. Boolani Engineering Corpn., 402, Veer Savarkar Road, Prabhadevi Indl. Estate,

Bombay-400 025.

8. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

9. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari

East, Mumbai – 500 072.

10. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

11. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005.

12. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

Ahmedabad – 382445

13. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

LIST OF RAW MATERIAL SUPPLIERS:

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641006,

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079,

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastIcs, 57/2, Thirupalli Street – 79,

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

6 Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs]

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Land & Building (Advance) 2.00 Plant & Machinery 63.28 Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC 2.05 69.83 2. MEANS OF FINANCE Capital 22.37 Term Loan 47.46 69.83 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-MTs 120 120 120 120 120Utilisation 60% 70% 80% 80% 80%Production/Sales-MTs 72 84 96 96 96 Selling Price per MT-Rs. 1.25 lakhs Sales Value (Rs.lakhs) 90.00 105.00 120.00 120.00 120.00 Raw Materials 46.25 53.96 61.66 61.66 61.66Packing Materials 1.44 1.68 1.92 1.92 1.92Power 13.68 15.96 18.24 18.24 18.24Wages & Salaries 7.92 8.32 8.74 9.18 9.64Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88Depreciation 9.49 8.07 6.86 5.83 4.95Cost of Production 79.38 88.65 98.15 97.63 97.29Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38Interest on Term Loan 5.22 4.57 3.26 1.96 0.65Interest on Working Capital 0.82 0.82 0.82 0.82 0.82Total 89.02 97.82 106.20 104.58 103.14

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Profit Before Tax 0.98 7.18 13.80 15.42 16.86Provision for tax 0.33 2.42 4.65 5.19 5.67Profit After Tax 0.65 4.76 9.15 10.23 11.19Add: Depreciation 9.49 8.07 6.86 5.83 4.95Cash Accruals 10.14 12.83 16.01 16.06 16.14 Repayment of Term loan 0.00 11.87 11.87 11.87 11.85

4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 1.93 25% 0.48 1.45 Consumables 2.00 0.24 25% 0.06 0.18 Finished goods 0.50 3.31 25% 0.83 2.48 Debtors 0.50 3.75 10% 0.38 3.37 Expenses 1.00 0.30 100% 0.30 0.00 9.53 2.05 7.48 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 9.15 Sales

= 120.00

8%

Profit before Interest and Tax 17.88 Total Investment

= 77.31

23%

Profit after Tax = 9.15 41%

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Promoters Capital 22.37 7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 8.74 Repairs & Maintenance 0.73 Depreciation 6.86 Admin. & General expenses 3.97 Interest on TL 3.26 23.56 Profit Before Tax (P) 13.80

FC x 100 23.56 80 BEL = FC +P

=37.36

x 100

x 100

50% of installed capacity

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PLASTIC CROCKERY

INTRODUCTION

Unbreakable plastic crockery ware is very popular in households and hotels.

They are made of melamine formaldehyde moulding powder. The products

include Cup and Saucer Sets, Plates, Bowls and Dinner Plates. The main

advantages of Melamine Crockery over the conventional Crockery are un-

breakability, odour-free, heat and shock proof and scratch resistance, lightweight

and non-toxic. :

Melamine Crockery is available in eye-catching colours, attractive designs and

finishes.

MARKET POTENTIAL

Indian Petrochemical industry is one of the fastest growing sectors of the economy.

The petrochemical sector has an average growth at a rate of 13% per annum, which

is more than double the growth of GDP. The usage of polymers for injection moulding

and other components used in engineering plastics is bound to increase with the

increase in production of automobile vehicles, machinery and other electrical

machinery and consumer durables.

The Indian Plastic Industry has taken great strides in its quest for success. The

last few decades have seen it rise to the position of a leading force in the country

with a sizable base. The industry itself is growing at a fast pace and the per

capita consumption of plastics in the country has increased manifold as

compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities.

It has helped substitute and save scarce natural resources. It is an inseparable

part of our daily life.

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Constant developments in polymer technology, processing machinery, know how

and cost effective production is fast replacing plastics in every segment from its

conventional materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4

million tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and

china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100 Demand estimates for Engineering Thermoplastics

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ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go

up to 7.7 kg by the year 2007. While it is true that our consumption is below the

world average of 17 kg, per capita figures should be viewed in the context of our

large population; sometimes per capita figures are useful only for trend analysis

and not in absolute terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Plastic

Crockery

6.25 kgs 16 100 kgs 30 MT

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PLANT AND MACHINERY

Sl.No Description Qty Amount

1 Automatic Compression Moulding Machine (150 ton

capacity) with Electro-hydraulic Press control

system, Integral power pack and motor control

equipment together with temperature controllers.

1 1000000

2 Sets of moulds 700000

3 Impregnation unit 100000

4 Electric oven 55000

5 Balance with weights 25000

6 Scrap grinder 55000

8 Buffing machine 35000

9 Miscellaneous tools 30000

2000000

MANUFACTURING PROCESS

Decoration of crockery can be done by using compression moulding press in the

Mould Decoration Process. The decoration of thermo set paste is done by first

going through normal compression moulding cycle and interrupting before

complete cure. The foil of overlay is then placed in contact with the partially

cured piece, the mould is closed, opened for de-gas and reclosed for proper

cure.

The foil is made of a higher grade paper or fabric. These are impregnated with a

thermo set resin, normally Melamine Formaldehyde. Both the foils and dyes

used in printing must be resistant to discolorations during exposure to high curing

temperatures. The most common material used in Alpha Cellulose Paper.

One of the main requirements for decorating thermo set materials by the in-

mould process is a well designed compression moulding press. Flat pieces such

as Dinner plates are easiest to decorate whereas items with sharp edges are

impossible to decorate. To achieve better gloss mould is chrome plated.

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The moulded components should be free from blisters. The components should

be cooled to room temperature and then deflashed manually, or by the help of a

grinder. After de- flashing the components are buffed to achieve the required

gloss.

RAW MATERIALS

For-MTs 30

Qty-MTs Rate/MT Value Rs. Lakhs

Melamine formaldehyde 30 90000 27.00

Other additives 6.00

TOTAL 33.00

Packing materials 30 2000.00 0.60

LAND AND BUILDING

Built up area-Sq.ft 1500

Rent p.m.-Rs per .5 per sq.ft 7500

Advance-10 months. Rs 75000

UTILITIES

Power & water

Three phase- KW 36.00

Power charges Rs. lakhs p.a 8.21

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 2 5000 10000

Unskilled 10 3000 30000

Accounts Assistant 1 4000 4000

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6

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 61000

Add benefits 20% 12200

Total per month 73200

TOTAL PER ANNUM-Rs. lakhs 8.78

SCHEDULE OF IMPLEMENTATION

After making arrangements for the financing the project and the premises, the project

can be implemented within 3 months.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 30 MT/annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.260.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.8.21 lakhs per annum at 100%

Wages and salaries Rs. 8.78 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

maintenance

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month around 5% annual

increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

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7

LIST OF COMPRESSION MOULDING MACHINES SUPPLIERS:

1.M/s Kwality Engineering Works, 48-A, Mukta Ram Babu Street, Kolkota-700 007.

2.Sri Nivas Brothers (P) Ltd., 316, `Neelam', 3rd floor, 108, Worli Sea Face Road,Mumbai-400 018.

3.M/s Kumar Engineering Works, Kolkota-700 007.

4.D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

5.Europack Machines India Pvt Ltd, 52, Bindal Industrial Estate, Andhari East, Mumbai-500 072.

6.Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–82415,

7.Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005.

8.Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

Ahmedabad – 382445

9.HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

List of Scrap Grinders Suppliers:

1. M/s Vishmeo Plastics, 704, Industrial Area, `A', Ludhiana-141 003.

2. M/s Jogindra Engineering Works, 4/25, Industrial Area, Kirti Nagar, New Delhi-110 015.

List of Moulds & Dies Suppliers:

1. M/s Dynamic Press (P) Ltd., Laxmi Prasad Bldg, Dayaldas Road, Vile Parle(E)Mumbai-400 057.

2. Electro Plastic Combination, 57 Nelson Manickam Mudaliar Road, Aminijikarai, Chennai-600 029.

ADDRESSES OF RAW MATERIAL AND OTHER CONSUMABLE SUPPLIERS

1. M/s Gujarat State Fertiliser Co. Ltd., P. O. Fertilizernagar, Vadodara - 391 750 (MF)

2. M/s Nuchem Limited, 54, Industrial Area, Faridabad-121 001 (MF)

3. M/s Indian Plastics Ltd., Kandivili, Mumbai-400 067 (MF)

4. M/s Polyroic Industries, 6, Kalpataru Co-operative Society, Dixit Road,

Vile Parle (E), Mumbai-400 061. (Pigments, Dyes & Colours)

5 M/s A.E. Maskati & Co., Maskati House, Mohammedali Road, Mumbai-400 003. (Pigments, Dyes

& Colours)

6 M/s Hoechst Dyes & Chemicals Ltd., Hoechst House, Nariman Point, Mumbai-400 021.

(Pigments, Dyes & Colours)

7. M/s Amar Dye-Chem Ltd., Rang Udyan, Sitladevi Temple Road,Mumbai-400 016.

(Pigments, Dyes & Colours)

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8

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 0.75

Plant & Machinery 20.00

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 1.12

24.37

2. MEANS OF FINANCE

Capital 9.37

Term Loan 15.00

24.37

Term Loan amount is assumed at 75% of the value of Machinery

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs.lakhs]

Years 1 2 3 4 5

Installed Capacity-MTs 30 30 30 30 30

Utilisation 60% 70% 80% 80% 80%

Production/Sales-MTs 18 21 24 24 24

Selling Price per MT-Rs. 2.60

Sales Value (Rs. lakhs) 46.80 54.60 62.40 62.40 62.40

Raw Materials 19.80 23.10 26.40 26.40 26.40

Packing Materials 0.36 0.42 0.48 0.48 0.48

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9

Power 4.92 5.75 6.57 6.57 6.57

Wages & Salaries 8.78 9.22 9.68 10.16 10.67

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 3.00 2.55 2.17 1.84 1.57

Cost of Production 37.46 41.70 46.03 46.25 46.57

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 1.65 1.44 1.03 0.62 0.21

Interest on Working Capital 0.39 0.39 0.39 0.39 0.39

Total 43.10 47.31 51.42 51.43 51.55

Profit Before Tax

3.70

7.29 10.98 10.97 10.85

Provision for tax 1.24 2.45 3.70 3.69 3.65

Profit After Tax 2.46 4.84 7.28 7.28 7.20

Add: Depreciation 3.00 2.55 2.17 1.84 1.57

Cash Accruals 5.46 7.39 9.45 9.12 8.77

Repayment of Term loan 0.00

3.75 3.75 3.75 3.75

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 0.83 25% 0.21 0.62

Consumables 2.00 0.06 25% 0.02 0.04

Finished goods 0.50 1.56 25% 0.39 1.17

Debtors 0.50 1.95 10% 0.20 1.75

Expenses 1.00 0.30 100% 0.30 0.00

4.70 1.12 3.58

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10

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 7.28

Sales

=

62.40

12%

Profit before Interest and Tax 12.40

Total Investment

=

27.95

44%

Profit after Tax 7.28

Promoters Capital

=

9.37

78%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs.lakhs]

Wages & Salaries 9.68

Repairs & Maintenance 0.73

Depreciation 2.17

Admin. & General expenses 3.97

Interest on TL 1.03

17.58

Profit Before Tax (P) 10.98

FC x 100 17.58 80 BEL =

FC +P

=

28.56

x

100

x 100

49% of installed capacity

Or production volume 147 MTs or Sales Value of Rs.38.22 lacs

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PLASTIC TOOTHPICKS

INTRODUCTION

Plastic tooth picks are very convenient for tooth picking. They are widely

consumed in all hotel and restaurants. Compared to wood and the plastic

toothpicks are flexible and they are available in well packed condition. The

toothpicks are manufactured with automatic injection moulding machines.

Automatic injection moulding machines are preferred where precision moulding

requirements are high; where high production rate with minimum cycle time is

required and where the weight of the component injection moulded generally

exceeds 150 gms, which could not be injection moulded in semi-automatic

machines.

MARKET

The consumerism in India is increasing and the eating out habits of the people is

increasing day by day with the launching of chin shops modern restaurants etc in

India. The tooth picks are largely consumed in all the restaurants.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Tooth picks 50 kgs 8 400 kg 120 MT

PLANT AND MACHINERY

No. Description Qty

Price

(Nos.) (Rs.)

1. Automatic injection moulding 1 16,00,000

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machine with accessories

(400 gms, screw type)

2. Scrap Grinders (cap. 40 Kg/hour) 1 1,10,000

3. Dry colour Mixer 1 1,00,000

4. Mould lifting equipment (2 MT cap.) 1 50,000

5. Water cooling arrangement 52,000

6. Weighing scale 1 16,000

7. Moulds 4 sets 3,72,000

Total 23,00,000

MANAFACTURING PROCESS

The plasticised and homogenised thermoplastic material is injected into a locked

(clamped) mould with sufficient injection speed and pressure. After the melt is

cooled in the mould, it is opened to remove the moulded articles. This is a cyclic

process. Automatic injection moulding machine is the basic machinery involved

in this project.

RAW MATERIALS

For MTS 120

Qty-MTs Rate/MT Value Rs. Lakhs

PP/HDPE granules 126 60000 75.60

Matster batches & colour 120 2000 2.40

TOTAL 78.00

Packing materials 120 50000 60.00

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2000

Rent p.m.-Rs per .5 per sq.ft 10000

Advance-10 months. Rs 100000

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UTILITIES

Three phase- KW 40.00

Power charges Rs. lakhs p.a 4.56

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Monthly wages Total

0 0 0

Supervisor 1 8000 8000

Skilled 2 5000 10000

Unskilled 2 3000 6000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 37000

Add benefits 20% 7400

Total per month 44400

TOTAL PER ANNUM-Rs. lakhs 5.33

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 120 MT of Tooth picks per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.160.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.4.56 lakhs per annum at 100%

Wages and salaries Rs. 5.33 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% increase per annum

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annum

Depreciation Written down value method -15 % on machinery

Selling general and administrative expenses

Rs.30000 per month with 5% increase per annum

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS

1. M/s. Brimco Plastic Machinery Corpn. Ltd., 55, Govt. Industrial Estate,

Kandivilli (E), Mumbai-400 006.

2. M/s. Faroni Enterprises,10, Anderson Street, Chennai - 600 001.

3. M/s. Neptune Plastics & Metal Industries,18, R.N. Mukherjee Road(7 th Floor)

Calcutta - 700 001.

4. M/s. Jolite Industries, No.7 Meenambal Salai, Kaviyarasu Kannadasan Nagar

Chennai - 600 051.

5. M/s. Golden Engineering Industries, 8797, Shidipura Crossing, Rani Jhansi Road

New Delhi- 110 055.

6. M/s. Kolsite Machine Fabrik Ltd., P.O. Box No. 11902, Off Veeradesai Road

Mumbai - 400 053.

7. M/s. Boolani Engineering Corpn., 402, Veer Savarkar Road, Prabhadevi Indl. Estate,

Bombay-400 025.

8. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600

018.

9. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka,

Andhari East, Mumbai – 500 072.

10. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–

382415,

11. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–

121005.

12. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase

1 Valva,

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Ahmedabad – 382445

13. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

LIST OF RAW MATERIAL SUPPLIERS:

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641006,

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079,

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastIcs, 57/2, Thirupalli Street – 79,

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

6 Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 1.00

Plant & Machinery 23.00

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 3.76

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30.26

2. MEANS OF FINANCE

Capital 13.01

Term Loan 17.25

30.26

Term Loan amount is assumed at 75% value of the Machinery

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-MTs 120 120 120 120 120

Utilisation 60% 70% 80% 80% 80%

Production/Sales-MTs 72 84 96 96 96

Selling Price per MT-Rs. 1.6 Lakh

Sales Value (Rs. lakhs) 115.20 134.40 153.60 153.60 153.60

Raw Materials 46.80 54.60 62.40 62.40 62.40

Packing Materials 36.00 42.00 48.00 48.00 48.00

Power 2.74 3.19 3.65 3.65 3.65

Wages & Salaries 5.33 5.59 5.87 6.16 6.47

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 3.45 2.93 2.49 2.12 1.80

Cost of Production 94.92 108.97 123.14 123.13 123.20

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 1.90 1.66 1.19 0.71 0.24

Interest on Working Capital 1.46 1.46 1.46 1.46 1.46

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Total 101.88 115.87 129.76 129.47 129.28

Profit Before Tax 13.32 18.53 23.84 24.13 24.32

Provision for tax 4.48 6.24 8.02 8.12 8.19

Profit After Tax 8.84 12.29 15.82 16.01 16.13

Add: Depreciation

3.45

2.93

2.49

2.12

1.80

Cash Accruals 12.29 15.22 18.31 18.13 17.93

Repayment of Term loan 0.00 4.31 4.31 4.31 4.32

4. WORKING CAPITAL

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 1.95 25% 0.49 1.46

Consumables 2.00 6.00 25% 1.50 4.50

Finished goods 0.50 3.95 25% 0.99 2.96

Debtors 0.50 4.80 10% 0.48 4.32

Expenses 1.00 0.30 100% 0.30 0.00

17.00

3.76

13.24

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 15.82

Sales

=

153.60

10%

Profit before Interest and Tax 26.49

Total Investment

=

43.50

61%

Profit after Tax = 15.82 122%

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Promoters Capital

13.01

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 5.87

Repairs & Maintenance 0.73

Depreciation 2.49

Admin. & General expenses 3.97

Interest on TL 1.19

14.25

Profit Before Tax (P) 23.84

FC x 100 14.25 80 BEL =

FC +P

=

38.09

X

100

x

100

30% of installed capacity

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1

PLASTIC BOTTLES CAPS

INTRODUCTION

Bottle caps can be manufactured both form thermosetting material (UF & PF) as well as

thermoplastic material (PP, HIPS, HDPE etc.) the present scheme envisages setting up of

a unit comprising of a compression moulding and injection moulding sections.

However, many a time more than one conversion techniques may be employed in the

same unit in order to cover a wider range of products.

MARKET

The plastic caps are widely used in capping the bottles where liquids are packed. The

plastic market has been increasing phenomenally as can be seen for the following figures.

The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our daily

life.

Constant development in polymer technology, processing machinery, know how and cost

effective production is fast replacing plastics in every segment from its conventional

materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

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2

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

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3

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go up to 7.7

kg by the year 2007. While it is true that our consumption is below the world average of 17

kg, per capita figures should be viewed in the context of our large population; sometimes

per capita figures are useful only for trend analysis and not in absolute terms.

INSTALLED CAPACITY

Product Installed

capacity per

hour

No of

working

hours

per day

Capacity

per day

Capacity per

annum

300 days per

annum

Plastic bottles caps

1. U/F P/F Bottle Caps

2. Thermoplastic caps

1000 pieces

1000 pieces

8

8

8000 pieces

8000 pieces

24 Lakhs

24 Lakhs

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. Compression moulding section : 1 1,00,000

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4

(i) Table ting machine

(ii) Hydraulic thermosetting 1 1,80,000

Moulding press cap. 25 MT. stroke

12" single day light size of table

16 x 13 working pressure 2 tons/sq.

inch. complete with arrangements of

ejection, electrically operated, with

5 HP motors and other accessories

2. (i) Injection moulding section :

Fully automatic vertical plunger type 1 4,35,000

injection moulding machine 100 gms shot

capacity with all accessories & micro

processor controlled. (15 HP).

(ii) Set of moulds of bottle caps both 2,00,000

injection and compression mouldings

3. Small hand tools, greasing equipment etc. 85,000

Total 10,00,000

MANAFACTURING PROCESS

For the manufacture of UF/PF bottle caps hydraulic type compression moulding process is

employed. The thermosetting material is put in the cavities of a preheated mould and

pressed between the two platens of the press. The combined effect of heat and pressure

causes cross linking in the material leading to formation of micro-molecules. This causes

the compound to fill the cavity of mould and harden. After a certain time the mould is

opened and the mouldings are removed.

For the manufacture of bottle caps from thermoplastic material the process involves the

following steps :

1. Fixing of requisite dies in the die head

2. Feeding of raw materials in the hopper

3. Injecting molten material into the die

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5

4. Cooling and opening of the moulds

5. Ejection of moulding piece and

6. Finishing

RAW MATERIALS

4800000 Pieces Qty-MTs Rate/MT Value Rs. Lakhs Thermosetting-PF UF moulding pwd 12.60 50000 6.30 Thermostatic-HDPE/PP 12.60 68000 8.57 Matster batches & colour 0 100000 1.00 TOTAL 15.87 Packing materials 4800000 0.02 0.96

LOCATION LAND AND BUILDING

Built up area-Sq.ft 1000

Rent p.m.-Rs per .5 per sq.ft 5000

Advance-10 months.Rs 50000

UTILITIES

Three phase- KW 36.00

Power charges Rs.lakhs p.a 8.21

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Monthly wages Total

Supervisor 1 8000 8000

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6

Skilled 3 5000 15000

Unskilled 3 3000 9000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 1 2000 2000

sub total 43000

Add benefits 20% 8600

Total per month 51600

TOTAL PER ANNUM-Rs. lakhs 6.19

SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalised the project can be implemented in three months

time.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity Quality 1 UF/PF bottle caps – 48 lakh pcs per

annum and thermoplastic bottle caps

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.1.00 per piece

Raw materials As per the details given above

Packing materials As per details given above

Power Rs. 8.21 lakhs per annum at 100%

Wages and salaries Rs.6.19 lakhs with increase 5% every year.

Repairs and Maintenance Rs. 0.60 lakh per annum with 10% annual

increase

Depreciation Written down value method -15 % on machinery

Selling general and Rs.20000 per month with 5% annual increase

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7

administrative expenses

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS 1. Textair Plastics & Hydraulics, 18-Ambal Nagar Main Road, Ekkattuthangal-600 097.

2. J.B. Industries, 7 / 36 PH-2 TNHB, Muthamil Nagar- 600 118.

3. Klokner Windor India Ltd, 2-J Mound Road, Teynampet-600 018,

4. Polymechplast Machines LTd, Gold Coin House, 775, G.I.D.C Makarpura

Vadodara – 390 010.

5. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

6. Europack Machines India Pvt Lts, 52, Bindal Industrial Estate, Sakinaka, Andhari

East, Mumbai.

7. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

8. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad -121005.

9. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

Ahmedabad – 382445

10. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

LIST OF RAW MATERIAL SUPPLIERS

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641606.

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079.

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastICS, 57/2, Thirupalli Street – 600 079.

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

6. Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

7. Sankar Mercantile Agencies, 43 Vysarpadi Industrial Estate,

Chennai – 600 039.

8. Indian Petrochemical Corporation. 89 Santhome High Road,

Chenai – 600 028.

9. PP Industries, 91 Stranhas Road, Ooteri,Chennai – 600 012.

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10. Haldie Petrochemicals, 41 UN Road, T.nagar, Chennai 600 017.

11. V.B. Sree GanpathyColourCompany, 63, Devaraja Mudali Street, 2nd Floor,

Chennai – 600 003.

12. Prayag Polytech Pvt. LTd. 2468, Prayag House, ?Nalwa Street, Pahar Ganj, New

Delhi – 110 055.

FINANCIAL ASPECTS 1. COST OF PROJECT [Rs. lakhs] Land & Building (Advance) 0.50 Plant & Machinery 10.00 Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC 0.79 13.79 2. MEANS OF FINANCE Capital 6.29 Term Loan 7.50 13.79 Term Loan amount is assumed at 75% value of the Machinery. 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs. lakhs] Years 1 2 3 4 5 Installed Capacity No of pieces 4800000 4800000 4800000 4800000 4800000 Utilisation 60% 70% 80% 80% 80% Production/Sales- 2880000 3360000 3840000 3840000 3840000 Selling Price per Piece 1.00 Sales Value (Rs. lakhs) 28.80 33.60 38.40 38.40 38.40 Raw Materials 9.52 11.11 12.70 12.70 12.70 Packing Materials 0.58 0.67 0.77 0.77 0.77 Power 4.92 5.75 6.57 6.57 6.57 Wages & Salaries 6.19 6.50 6.83 7.17 7.53 Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88 Depreciation 1.50 1.28 1.08 0.92 0.78 Cost of Production 23.31 25.97 28.68 28.93 29.23 Selling, Admin, & General exp 2.40 2.52 2.65 2.78 2.92 Interest on Term Loan 0.83 0.72 0.51 0.31 0.10 Interest on Working Capital 0.24 0.24 0.24 0.24 0.24 Total 26.78 29.45 32.08 32.26 32.49

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Profit Before Tax 2.02 4.16 6.32 6.14 5.91 Provision for tax 0.68 1.40 2.13 2.07 1.99 Profit After Tax 1.34 2.76 4.19 4.07 3.92 Add: Depreciation 1.50 1.28 1.08 0.92 0.78 Cash Accruals 2.84 4.03 5.27 4.99 4.70 Repayment of Term loan 0.00 1.88 1.88 1.88 1.86 4. WORKING CAPITAL: Months Values % Margin Bank Consumpti

ons Amount Finance

Raw Materials 0.50 0.40 25% 0.10 0.30 Consumables 2.00 0.10 25% 0.03 0.07 Finished goods 0.50 0.97 25% 0.24 0.73 Debtors 0.50 1.20 10% 0.12 1.08 Expenses 1.00 0.29 100% 0.20 0.00 2.87 0.69 2.18 5. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 4.19 Sales

= 38.40

11%

Profit before Interest and Tax 7.07 Total Investment

= 15.97

44%

Profit after Tax 4.19 Promoters Capital

= 6.29

67%

6. BREAK EVEN LEVEL Fixed Cost (FC): [Rs. lakhs] Wages & Salaries 6.83 Repairs & Maintenance 0.73 Depreciation 1.08 Admin. & General expenses 2.65 Interest on TL 0.51 11.80 Profit Before Tax (P) 6.32

FC x 100 11.80 80 BEL = FC +P

=18.12

x 100

x 100

52% of installed capacity Or Production volume 24.96 lacs pieces or Sales value Rs.24.96 lacs

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PLASTIC DOORS

INTRODUCTION

Doors and widows were originally produced by wood. With non –availability of

the wood the doors are now manufactured with PVC and other materials.

PVC doors and windows are made with extruded profiles of different sizes.

MARKET

The housing shortage in India is phenomenal. There is large backlog in fulfilling

the demand for the housing. The construction activity is bound to increase and

the demand for the housing is bound to increase.

The doors and windows are manly consumed in the following places.

Offices (energy savings)

Hotels (energy savings & aesthetics)

Urban Residential (easy maintenance)

Govt. offices & institutions (saving of natural resources

PVC windows & doors have following advantages over its existing rivals. Today,

plastics are making steady inroads into the building industry. Plastics being low-

density materials have that advantage over all the traditional building materials.

They often do not need any protective coating and can be self-coloured, which

can be useful in window frames and cladding. Rigid PVC is the predominant

material that is being considered for the applications, which are traditionally

stronghold of wood. PVC is assembled to make doors & window frames, as well

as complete doors, partitions etc. Advantages of PVC profiles over

wood/Aluminium

• Non corrosive in nature

• Does not need painting or varnishing

• Good abrasion resistance

• Can be drilled, nailed, shaved etc

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• Easy to install

• Availability in variety of colours

• Rot proof

• Fire proof

• Reduction of energy wastage during production

• Waste material can be recycled

• Perfect insulation- Thermos insulation saves energy

• Excellent protection against weather

• Shield against sound pollution

• Guarantees long life

• UV protection - will not fade or discolour

• Condensation free

• Easy to clean

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

PVC Doors

and windows

112.5 kgs 16 1.8 MTs 540 MTs

PLANT AND MACHINERY

1. Compounding Unit

2. Twin Screw Extruder

3. Profiles Dies

4. Saw for profile cutting

5. Welding Machine

6. Corner Cleaning machine

7. Screwing & Drilling Machine

8. Granulating Plant for waste recycling

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9. Double mitre saw

10. Mullion million machine

The total value of plant and machinery on turnkey supply basis is estimated as

Rs.150.00 lakhs.

MANAFACTURING PROCESS

The basic process in manufacture of PVC door and window profiles is extrusion

of the profiles. After the extrusion, the profiles are cut to the required dimensions

and fabrication operations are performed.

The manufacturing process comprises of following steps:

1. Compounding

2. Extrusion

3. Fabrication and finishing

4. Quality control

5. Scrap recovery

RAW MATERIALS

For MTS 540.00

Qty-MTs Rate/MT Value Rs. Lakhs

PVC 567 65000 368.55

Master batches & colour 17 100000 17.01

TOTAL 385.56

Packing materials 540.00 500 2.70

LOCATION LAND AND BUILDING

Built up area-Sq.ft 10000

Rent p.m.-Rs per .5 per sq.ft 50000

Advance-10 months. Rs 500000

UTILITIES

Three phase- KW 100.00

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Power charges Rs. lakhs p.a 22.80

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Monthly wages Total

Manager 1 10000 10000

Supervisor 1 8000 8000

Skilled 6 5000 30000

Unskilled 6 3000 18000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 79000

Add benefits 20% 15800

Total per month 94800

TOTAL PER ANNUM-Rs. lakhs 11.38

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 540 MTs of PVC door and windows per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.1.10 lakhs per MT

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.22.80 lakhs per annum at 100%

Wages and salaries Rs. 11.38 lakhs with increase 5% every year.

Repairs and Maintenance Rs.1.20 lakh per annum with 10% annual

increase

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Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.2.00 lakhs per month with 5% annual

increase.

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS:

1. Battenfield Gloenco extrusion Systems Ltd, Berry Hill industrial Estate

GB Droiwich /Worcestershire, England,

2. Krauss-Maffel, Krausse Muffei Strassue-2, D-8000 Munich,

3. Pavesi Off.Mec, Via Martin Della Liberta 2, 200085, Locate Triulzi MI,Italy

4. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600

018.

5. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka,

Andhari East, Mumbai – 500 072.

6. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–

382415,

7. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad –

121005.

8. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1

Valva,

Ahmedabad – 382445

9. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

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FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 5.00 Plant & Machinery 150.00 Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC 7.41 164.91 2. MEANS OF FINANCE Capital 52.41 Term Loan 112.50 164.91 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-MTs 540 540 540 540 540Utilisation 60% 70% 80% 80% 80%Production/Sales-MTs 324 378 432 432 432 Selling Price per MT-Rs. 1.10 lakhs Sales Value (Rs.lakhs) 356.40 415.80 475.20 475.20 475.20 Raw Materials 231.34 269.89 308.45 308.45 308.45Packing Materials 1.62 1.89 2.16 2.16 2.16Power 13.68 15.96 18.24 18.24 18.24Wages & Salaries 11.38 11.94 12.54 13.17 13.83Repairs & Maintenance 1.20 1.32 1.45 1.60 1.76Depreciation 22.50 19.13 16.26 13.82 11.75Cost of Production 281.72 320.13 359.10 357.44 356.19Selling, Admin, & General exp 24.00 25.20 26.46 27.78 29.17

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Interest on Term Loan 12.38 10.83 7.73 4.64 1.55Interest on Working Capital 3.25 3.25 3.25 3.25 3.25Total 321.35 359.41 396.54 393.11 390.16 Profit Before Tax 35.05 56.40 78.66 82.09 85.04Provision for tax 11.80 18.98 26.48 27.63 28.63Profit After Tax 23.25 37.42 52.18 54.46 56.41Add: Depreciation 22.50 19.13 16.26 13.82 11.75Cash Accruals 45.75 56.54 68.44 68.28 68.16 Repayment of Term loan 0.00 28.13 28.13 28.13 28.11 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 9.64 25% 2.41 7.23 Consumables 2.00 0.27 25% 0.07 0.20 Finished goods 0.50 11.74 25% 2.94 8.80 Debtors 0.50 14.85 10% 1.49 13.36 Expenses 1.00 0.50 100% 0.50 0.00 37.00 7.41 29.59 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 52.18 Sales

= 475.20

11%

Profit before Interest and Tax 89.64 Total Investment

= 194.50

46%

Profit after Tax 52.18 Promoters Capital

= 52.41

100%

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7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 12.54 Repairs & Maintenance 1.45 Depreciation 16.26 Admin. & General expenses 26.46 Interest on TL 7.73 64.44 Profit Before Tax (P) 78.66

FC x 100 64.44 80 BEL = FC +P

=143.10

x 100

x 100

36% of installed capacity

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PLASTIC SPECTACLE FRAMES

INTRODUCTION

Spectacle frames are manufactured in different shapes and sizes. Power glasses are

used by all those persons whose eye sight is weak while sun glasses are used to protect

eyes from sun and dust. The use of spectacle frame in one case becomes essential

while in other it may be a mere fashion.

MARKET

Indian Petrochemical industry is one of the fastest growing sectors of the economy. The

petrochemical sector has an average growth at a rate of 13% per annum, which is more than

double the growth of GDP. The usage of polymers for injection moulding and other

components used in engineering plastics is bound to increase with the increase in

production of automobile vehicles, machinery and other electrical machinery and consumer

durables.

The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our

daily life.

Constant developments in polymer technology, processing machinery, know how and

cost effective production is fast replacing plastics in every segment from its conventional

materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

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• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100 Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

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Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate The per capita plastics consumption, which is currently at 3 kg, is projected to go up to

7.7 kg by the year 2007. While it is true that our consumption is below the world average

of 17 kg, per capita figures should be viewed in the context of our large population;

sometimes per capita figures are useful only for trend analysis and not in absolute

terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Plastic

spectacle

frames

15 Nos 8 120 Nos 36000 Nos

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. Shear Cutting Machine with 1/2 1 25,000

HP Motor

2. Milling Machine complete with 4 75,000

1/2 HP motor

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3. Wire inserting machine 1 20,000

4. Drilling machine with 1 HP motor 3 45,000

5. Polishing drum double with a stand 1 17,000

and 1 HP motor

6. Buffing machine with 1 HP motor 4 60,000

7. Hand press mounted on work table 3 28,000

8. Misc. equipments, tools, dies 1,00,000

fixtures etc.

9. Working tables 30,000

Total 4,00,000

MANAFACTURING PROCESS

Cellulose Nitrate sheet is cut into strips of the required size for frames and sides. Holes

for glass fixing and the portion for nose fitting are cut from the strip. It can also be done

by Pentographic machine, after that inside and outside milling is done. Grooving is done

for fixing up the lens. Required radius and slopes are given to the frame. After cutting,

filing etc., nose pads are cut and fixed with solution and kept for drying. Before fixing of

nose pads, the front piece is put in moderately hot water and bent to the required shape

on hand press. Then they are put in barrel for polishing. Hinges and Pins are fitted and

rivetted. Again lots of a few dozen pieces are put for lusture polishing.

The sides of the frames are heated in an oil bath to make them soft. The two sides are

fixed on a die in opposite direction from each other. Inside & outside milling and taper

clearing etc. is done. With the help of wire shooting machine, wire is inserted. They are

put in the barrel for polishing. Hinges & pins are fitted and rivetting is done. After

polishing, when both parts are ready, they are assembled through hinges. Finally these

are packed in a box which is labelled denoting the brand, size quantity, colour etc.

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RAW MATERIALS

For-lakhs nos 36000

Qty-kgs Rate/kg Value

Rs lakhs

Cellulose Nitrate Sheets 3600.00 150 5.40

Hinges, rivets, side wires 5.40

Polishing, compound and buffing materials 1.80

TOTAL 12.60

Packing materials 36000 2.00 0.72

LOCATION LAND AND BUILDING

Built up area-Sq.ft 1000

Rent p.m.-Rs per .5 per sq.ft 5000

Advance-10 months.Rs 50000

UTILITIES

Three phase- KW 6.40

Power charges Rs.lakhs p.a 0.73

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 3 5000 15000

Unskilled 7 3000 21000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

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sub total 57000

Add benefits 20% 11400

Total per month 68400

TOTAL PER ANNUM-Rs. lakhs 8.21

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 36,000 nos. of frames (of varied sizes, shapes

and thickness) per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.100.00 per piece.

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.0.73 lakh per annum at 100%

Wages and salaries Rs. 8.21 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

increase

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS:

1. M/s Niraj Optical Industries, GIDC, Opp. Vatva Station, Vatava, Ahmedabad.

2. M/s Bhavana Engineering Works, Patel Industrial Estate, Yamuna Mill Road, Baroda.

3. M/s Ahluwalia Tack Tools, Ramkrishna Chamber, Beyond Railway Crossing,

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Condal, Rajkot - 4.

4. M/s S. K. Industries, Kagidwala Chawl, Pratapnagar, Baroda.

5. M/s Aigis Engineering Co. Pvt. Ltd., 90/7, GIDC Vatva, Phase I, Ahmedabad.

6. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

7. Europack Machines India Pvt Ltd, 59 Bindal Industrial Estate, Andhari East,

Mumbai – 500 072.

8. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

9. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005.

10. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

Ahmedabad – 382445

11. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

ADDRESSES OF RAW MATERIAL AND OTHER CONSUMABLE SUPPLIERS

A. For Hinges & Screws

1. M/s Jagdish Watch Co., Shaktinagar, Rajkot.

2. M/s FA Chasmawala Pvt. Ltd., Pratapnagar, Baroda.

3. M/s Suresh Chandra & Co., Shed B-26, Industrial Estate, Near Shankar Takri, Jamnagar.

4. M/s Specs & Hinges Pvt. Ltd., 204, Dr. D. N. Road, Mumbai.

5. M/s Indian Optical Appliance Co., Nasik.

6. M/s Medas Optical Co., C/o Vijay Optical Industries, Dharampur Road,

4th Abraham Village, Bulsar-960 001.

7. Das Optical Industries, Dharampur Road, Near National Highway, Dist. Bulsar.

B. For Side Wires

1. M/s Caps & Cans, Waghodia Road, Khalambda Port, Ankhol, Baroda.

2. M/s Khatri Industries, Ravi Shankar Maharaj Road, Bodeli, Baroda.

3. M/s Khadir Industries, Bodeli, Baroda.

C. C. N. Sheets Imported.

D. For Cellulose Acetate Sheets, Granules & Powder

1. M/s Mysore Cellulose Acetate, Mysore.

2. M/s Mysore Sales International Ltd., Arun Chambers, Tardeo Main Road,

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Bombay-400 034. (Distributor).

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 0.50

Plant & Machinery 4.00

Other Misc. assets 0.50

Pre-Operative expenses 1.00

Margin for WC 0.68

6.68

2. MEANS OF FINANCE

Capital 3.68

Term Loan 3.00

6.68

Term Loan is assumed at 75% of the Machinery value.

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-Nos 36000 36000 36000 36000 36000

Utilisation 60% 70% 80% 80% 80%

Production/Sales-lakhs 21600 25200 28800 28800 28800

Selling Price pe nos-Rs. 100.00

Sales Value (Rs.lakhs) 21.60 25.20 28.80 28.80 28.80

Raw Materials 7.56 8.82 10.08 10.08 10.08

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Packing Materials 0.43 0.50 0.58 0.58 0.58

Power 0.44 0.51 0.58 0.58 0.58

Wages & Salaries 8.21 8.62 9.05 9.50 9.98

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 0.60 0.51 0.43 0.37 0.31

Cost of Production 17.84 19.62 21.45 21.91 22.41

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 0.33 0.29 0.21 0.12 0.04

Interest on Working Capital 0.18 0.18 0.18 0.18 0.18

Total 21.95 23.87 25.81 26.38 27.01

Profit Before Tax

-0.35 1.33 2.99 2.42 1.79

Provision for tax 0.45 1.01 0.82 0.60

Profit After Tax -0.35 0.88 1.98 1.60 1.19

Add: Depreciation 0.60 0.51 0.43 0.37 0.31

Cash Accruals 0.25 1.39 2.41 1.97 1.50

Repayment of Term loan 0.00 0.75 0.75 0.75 0.75

4. WORKING CAPITAL :

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 0.32 25% 0.08 0.24

Consumables 2.00 0.07 25% 0.02 0.05

Finished goods 0.50 0.74 25% 0.19 0.55

Debtors 0.50 0.90 10% 0.09 0.81

Expenses 1.00 0.30 100% 0.30 0.00

2.33 0.68 1.65

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10

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax = 1.98

Sales 28.80

7%

Profit before Interest and Tax 3.38

Total Investment

=

8.33

41%

Profit after Tax 1.98

Promoters Capital

=

3.68

54%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 9.05

Repairs & Maintenance 0.73

Depreciation 0.43

Admin. & General expenses 3.97

Interest on TL 0.21

14.39

Profit Before Tax (P) 2.99

FC x 100 14.39 80 BEL =

FC +P

=

17.38

x

100

x 100

66% of installed capacity

or Production volume

23760 Nos. or Sales

value Rs.23.76 lacs

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POLY PROPYELNE DRINKING STRAWS

INTRODUCTION

Drinking straws made out of polypropylene are very popular as the same can be

drinking soft-drinks and beverages like Colas, fruit juices, Rose milk, cold coffee,

Lassi etc., They are fast replacing the conventional wax paper straws on account

of their superior performance, light weight, pleasing colours, ease of handling,

packing and transport.

MARKET POTENTIAL

The demand for the PP drinking straws is increasing due the improvement in

consumerism and the growth of cool bars, fast food restaurants and the retail

outlets in the country.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

PP Drinking

Straws

31250 nos 8 2.50 lakh

nos

750.00 lakhs

nos

PLANT AND MACHINERY

S.no Items Qty Rs

1. PP Straw making Plant consisting of

a) 30 mm Thermoplastic Extruder fitted with 3.75 KW, 1440

RPM 3 Phase, 50 c/s Eddy current Coupling Drive having

a speed range of 10 - 100 RPM

b)Control cabinet consisting of 4 solid state temperature

controls ampere meters, contactors, Pilot switches with 4

1 400000

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thermocouples

c)Star head and die

d) Water tank 150 mm wide,150 mm deep and 2 metres long

e) Roller conveyor fitted D.C varidrive

f) Rotary cutter driven in conjunction with roller conveyor

2. Miscellaneous equipment and essential spares 1 set 100000

Total 500000

MANUFACTURING PROCESS

PP straws are manufactured by the extrusion process. Generally a simple 30 mm

Extruder with the required Dies and cooling and cutting arrangements would

suffice for small productions. However 35 mm and 50 mm Extruders are used for

the production of larger quantities and which along with an auxiliary Extruder (20

mm) can produce Bi-colour and Tri-colour drinking straws.

The process of manufacture consists of the following steps

1. Charging of PP granules into the Extruder.

2. Extrusion of Straw pipes in continuous length through the Extruder Die.

3.Cooling of the pipes by passing them through a water bath.

4. Cutting of pipes to pre-adjusted lengths by an automatic cutter.

5 Collection of cut straw pipes in a container and then packing them manually in packs

containing 500 nos. each. This is usually done by weighing method is very fast and

convenient.

RAW MATERIALS

For-lakhs nos 750.00 (27 MTs

required )

Qty-MTs Rate/MT Value Rs lakhs

PP Granules 27.00 70000 18.90

Colours, additives 2.40

TOTAL 21.30

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Packing materials 750.00 500.00 3.75

LAND AND BUILDINGS

Built up area-Sq.ft 1500

Rent p.m.-Rs per .5 per sq.ft 7500

Advance-10 months.Rs 75000

UTILITIES

Power & water

Three phase- KW 15.00

Power charges Rs.lakhs p.a 3.42

For process-Litres per day 2000

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 2 5000 10000

Unskilled 6 3000 18000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 49000

Add benefits 20% 9800

Total per month 58800

TOTAL PER ANNUM-Rs. lakhs 7.06

SCHEDULE OF IMPLEMENTATION

After making the financial arrangements the project can be implemented in 3 months

period.

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COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 750 lakhs per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.6500.00 per lakh Nos

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.3.42 lakhs per annum at 100%

Wages and salaries Rs. 7.06 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

increase

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5 % annual increase.

Interest on Term loan 11% per annum

Interest on working capital

finance

11% per annum

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FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 0.75 Plant & Machinery 5.00 Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC 0.92 9.17 2. MEANS OF FINANCE Capital 5.42 Term Loan 3.75 9.17 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-lakhs 750 750 750 750 750Utilisation 60% 70% 80% 80% 80%Production/Sales-lakhs 450 525 600 600 600 Selling Price per lakh nos-Rs. 6500.00 Sales Value (Rs.lakhs) 29.25 34.13 39.00 39.00 39.00 Raw Materials 12.78 14.91 17.04 17.04 17.04Packing Materials 2.25 2.63 3.00 3.00 3.00Power 2.05 2.39 2.74 2.74 2.74Wages & Salaries 7.06 7.41 7.78 8.17 8.58

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Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88Depreciation 0.75 0.64 0.54 0.46 0.39Cost of Production 25.49 28.64 31.83 32.21 32.63Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38Interest on Term Loan 0.41 0.36 0.26 0.15 0.05Interest on Working Capital 0.28 0.28 0.28 0.28 0.28Total 29.78 33.06 36.34 36.81 37.34 Profit Before Tax -0.53 1.07 2.66 2.19 1.66Provision for tax 0.36 0.89 0.74 0.56Profit After Tax -0.53 0.71 1.77 1.45 1.10Add: Depreciation 0.75 0.64 0.54 0.46 0.39Cash Accruals 0.22 1.35 2.31 1.91 1.49 Repayment of Term loan 0.00 0.94 0.94 0.94 0.93 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 0.53 25% 0.13 0.40 Consumables 2.00 0.38 25% 0.10 0.28 Finished goods 0.50 1.06 25% 0.27 0.79 Debtors 0.50 1.22 10% 0.12 1.10 Expenses 1.00 0.30 100% 0.30 0.00 3.49 0.92 2.57 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 1.77 Sales

= 39.00

5%

Profit before Interest and Tax 3.20 Total Investment

= 11.74

27%

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Profit after Tax 1.77 Promoters Capital

= 5.42

33%

7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 7.78 Repairs & Maintenance 0.73 Depreciation 0.54 Admin. & General expenses 3.97 Interest on TL 0.26 13.28 Profit Before Tax (P) 2.66

FC x 100 13.28 80 BEL = FC +P

=15.94

x 100

x 100

67% of installed capacity

LIST OF MACHINERY SUPPLIERS:

1. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600

018.

2. Europack Machines India Pvt Ltd, 52, Bindhal Industrial Estate, Sakinaka,

Andhari East, Mumbai – 500 072.

3. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

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1

PROPYLENE FILM

INTRODUCTION

Polypropylene films are used as packaging materials. They are used to pack of

garments, textiles, groceries, books, printing material, toys, food-stuff like bread,

cookies, cakes, fresh fruits, vegetables, pickles, candy where retention of flavour

freshness besides the usual property of clarity and gloss is required. The usage of PP

films is increasing due to its specific advantage of better visibility of the product.

Polypropylene water cooled film has an inherent advantage over other materials due to

its lower density, outstanding clarity, gloss, tensile strength and improved tear strength.

Moreover, polypropylene films give long preservation of freshness, and flavours,

retardation of mould and better resistance to brittleness under refrigeration.

MARKET

The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our

daily life.

Constant developments in polymer technology, processing machinery, know how and

cost effective production is fast replacing plastics in every segment from its conventional

materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

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2

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

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3

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go up to

7.7 kg by the year 2007. While it is true that our consumption is below the world average

of 17 kg, per capita figures should be viewed in the context of our large population;

sometimes per capita figures are useful only for trend analysis and not in absolute

terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Poly propylene

film

24 kgs 15 360 kgs 108 MT

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. 50 mm extruder with all accessories 1 12,00,000

which can produce PP film 40 to 500

Gauge and width 150 mm to 750 mm, with

a maximum output capacity of 30 kg/hr

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4

2. Small hand tools, greasing and oiling 2,00,000

Equipment, testing equipments, micro-

meter, shore `A' hardness tester,

tensile tester and Balance etc.

3. Extra sizing ring and spares 1,00,000

Total 15,00,000

MANAFACTURING PROCESS

Polypropylene granules are fed into the hopper of extrusion blowing machine. In the

barrel the material is pushed ahead towards die head by the rotation of screw. Due to

the external heating in the barrels and the shearing action of the screw, the material gets

converted into plasticised form. The gelled material coming out of the crosshead die is

taken on a downward take-off arrangement through a cooling system. Simultaneously

blowing it by compressed air expands the lay flat and the blown lay flat is passed

through rollers, nip rolled and then packed.

Thus, the PP blown film plant which can produce PP film up to 450 mm lay flat tubing

consists of a 45 mm extruder cross head and die, barrel with heaters, air cooling ring

blower, compressor, vertical downward take-off unit with nip rollers, stainless flattening

boards, station winders, etc.

RAW MATERIALS

For-MTs 108.00

Qty-MTs Rate/MT Value Rs. Lakhs

PP Granules 113.40 70000 79.38

TOTAL 79.38

Packing materials 108.00 1000.00 1.08

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5

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2000

Rent p.m.-Rs per .5 per sq.ft 10000

Advance-10 months.Rs 100000

UTILITIES

Power & water

Three phase- KW 40.00

Power charges Rs.lakhs p.a 9.12

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 2 5000 10000

Unskilled 4 3000 12000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 43000

Add benefits 20% 8600

Total per month 51600

TOTAL PER ANNUM-Rs. lakhs 6.19

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 108 MT/annum

Capacity utilisation Year-1 -60%

Year -2 -70%

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6

Year-3 onwards- 80%

Selling price Rs.1.05 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.9.12 lakhs per annum at 100%

Wages and salaries Rs. 6.19 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS

1. M/s Kolsite Industries, P. B. No. 7386, 31, Shah Industrial Estate, Bombay.

2. M/s R. H. Windsor (India) Ltd., E-6, U Road, Thane Indl. Estate, Thana.

3. M/s Brimco Pvt. Ltd., Brimco House, 55 - Govt. Industrial Estate, Kandivili (E),

Bombay.

4. M/s Kirti Thermoplast Engineering Works, 3, Panchal Sahakari Udyognagar

Dhudeshwar, Ahmedabad-1.

5. M/s Remica Plastic Machinery Manufacturers, Opp. Rustom Hills, Dhudeshwar Road,

Allahabad-1.

6. M/s Polyene General Industries Pvt. Ltd.,11-A, Industrial Estate, Guindy,

Chennai-600 032.

7. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

8. Europack Machines India Pvt Lts.,

9. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

10. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005.

11. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

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7

Ahmedabad – 382445

12. HMT International Ltd, 59 HMT Bhavan, Dellary Road, Bangalore – 560 032.

RAW MATERIAL

1. M/s Indian Petrochemicals Ltd., Jawahar Nagar, Baroda.

2. M/s Chika Ltd., Mehta Chambers, 13, Mathew Road, Bombay-400 004.

3. M/s Harshadrey Pvt. Ltd., JIJI House, Raveline Street, Bombay-400 001.

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs.lakhs]

Land & Building (Advance) 1.00

Plant & Machinery 15.00

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 1.77

20.27

2. MEANS OF FINANCE

Capital 9.02

Term Loan 11.25

20.27

term loan amount is assumed at 75% of the value of Machinery

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs.lakhs]

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8

Years 1 2 3 4 5

Installed Capacity-lakhs 108 108 108 108 108

Utilisation 60% 70% 80% 80% 80%

Production/Sales-lakhs 65 76 86 86 86

Selling Price per lakh nos-Rs. 1.05

Sales Value (Rs.lakhs) 68.25 79.80 90.30 90.30 90.30

Raw Materials 47.63 55.57 63.50 63.50 63.50

Packing Materials 0.65 0.76 0.86 0.86 0.86

Power 5.47 6.38 7.30 7.30 7.30

Wages & Salaries 6.19 6.50 6.83 7.17 7.53

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 2.25 1.91 1.63 1.38 1.17

Cost of Production 62.79 71.78 80.85 81.01 81.24

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 1.24 1.08 0.77 0.46 0.16

Interest on Working Capital 0.67 0.67 0.67 0.67 0.67

Total 68.30 77.31 86.26 86.31 86.45

Profit Before Tax

-0.05 2.49 4.04 3.99 3.85

Provision for tax -0.02 0.84 1.36 1.34 1.29

Profit After Tax -0.03 1.65 2.68 2.65 2.56

Add: Depreciation 2.25 1.91 1.63 1.38 1.17

Cash Accruals 2.22 3.56 4.31 4.03 3.73

Repayment of Term loan 0.00 2.81 2.81 2.81 2.82

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

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9

Raw Materials 0.50 1.98 25% 0.50 1.48

Consumables 2.00 0.11 25% 0.03 0.08

Finished goods 0.50 2.62 25% 0.66 1.96

Debtors 0.50 2.84 10% 0.28 2.56

Expenses 1.00 0.30 100% 0.30 0.00

7.85 1.77 6.08

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10

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 2.68

Sales

=

90.30

3%

Profit before Interest and Tax 5.48

Total Investment

=

26.35

21%

Profit after Tax 2.68

Promoters Capital

=

9.02

30%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs.lakhs]

Wages & Salaries 6.83

Repairs & Maintenance 0.73

Depreciation 1.63

Admin. & General expenses 3.97

Interest on TL 0.77

13.93

Profit Before Tax (P) 4.04

FC x 100 13.93 80 BEL =

FC +P

=

17.97

x

100

x 100

62% of installed capacity

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1

POLYETHYLENE TARPAULINS

INTRODUCTION

These tarpaulins are used by home owners, contractors, lawn services, boat and marine

sites, mining companies, camp grounds, farmers, lumber yards, saw mills, roofers and

for covering transport vehicles. They are convenient and durable. Polyethylene

tarpaulins are manufactured by weaving plastic tapes into woven fabrics and later into

tarpaulins of different layers. The tarpaulins are light in weight.

MARKET

The Tarpaulins are available different thicknesses as given below.

165 GSM,200 GSM,270GSm,300GSM,400GSM.

Tarpaulin is HDPE woven fabric laminated with LDPE/LLDPE on both the sides. It is mostly

used as a protective covering for various applications in the monsoon season.

The main manufacturers of Tarpaulin are located in and around Mumbai and

Ahmedabad.

Advantages

1. It is lighter in weight

2. Handling is easier

3. Water proof, does not get wet or soaked like canvas

4. Can be manufactured in desired colours

5. Printing is much more attractive

Applications

Transportation:

The tarpaulin is used as tailor-made covers for automobiles.During the monsoon,

there is a shift from canvas to HDPE tarpaulin for covering of trucks, which is a

major market at present.

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2

Storage:

This is the second largest market which includes covers: for Godowns, fumigation

of crops, Man daps of temporary sheds and out-door open storage.

Electricity Boards:

The various Electricity Boards cover transformers using tarpaulins in order to

avoid any accidental electrical leakage during monsoon season.

Other main uses are the following:

Covering temporary work sheds by Railways, PWD etc

Covering sport grounds and pools

Use in plastic tents, floor spreads

Covering construction machinery during monsoon

The HDPE Tarpaulins are thus becoming very popular.

INSTALLED CAPACITY

Product Installed capacity

per hour

No of working

hours per day

Capacity

per day

Capacity per annum

300 days per annum

Polyethylene

Tarpaulin

60 kgs equivalent

to about 300

Sq.metres of

average 200GSM

22.5 1350 kgs

equivalent

to about

6750

Sq.metres

of

average

200GSM

405 MTS

equivalent to about

2025000 Sq.metres of

average 200GSM

PLANT AND MACHINERY

S.no Items Qty Value rs.

Lakhs

1. 65 mm PP/HDPE Tape Plant with output of 80-90 1 45.00

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3

Kgs/hr suitable for manufacture of tapes of 700 to 1500

denier, for operating speed upto 225 mtrs/min,

complete with single screw 65 mm extruder, drive,

helical gear box, hopper, barrel, screw, complete set of

heaters for the barrel, adaptor, T-Die, cassette type

screen changer, S.S. Tank for film quenching, edge

trimmer with grinder and pneumatic conveying device.

Take Up equipments, consist of preliminary take off

with slitter assembly, first Godet with DC drive,

Orientation Hot Plate, Combined stretching and

annealing unit with DC drive, complete with electricals,

and drives.

2 KET type Cheese winders 68 10.00

3. Circular Looms (Lohia) 6 36.00

4. Industrial Sewing Machines Nos. 4 1.50

5. Fabric Cutting Equipment 4 1.00

6. Chilling Plant (12 TR) 1 4.00

7. Compressor (15 HP) 1 1.00

8. Tensile tester 1 2.00

9. Weighing machines 3 2.00

10. Cheese pipes 1.50

11. Lamination machine 1 5.00

12. Heat sealing & eye letting machine 1 1.00

13. Electricals 10.00

Total 120.00

MANUFACTURING PROCESS

The HDPE tubular blown film is first produced by extruder which is equipped with a

suitable die, cooling ring, temperature and process controls etc. From the extruder, the

film is taken off in a vertical take off tower which has air blowing arrangements.

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The film then goes to a slitting unit where it is slit into tapes of 6 to 12 mm width

depending upon the requirements. The tapes thus made are conveyed to stretching

orientation oven in which hot air circulates at controlled temperature. The tapes are

stretched to the desired level. The oriented tapes are passed through a second godet

station and then through the stabilizing oven. The stabilized tapes are passed through a

third godet station and then to a cheese winder unit where each tape is wound on a

separate cheese. The mono-axially oriented tapes of PP/HDPE produced are woven

into fabrics in circular looms. The necessary working machine and pirn winders are

provided. The woven fabric is then opened and tarpaulin is produced by laminating and

stitching by stitching machines. The eyelets are fixed by eyeleting machines. Lamination

is done by extrusion coating of LDPE.

RAW MATERIALS

For -Sq. Metres 2025000

Qty-MTs Rate/MT Value Rs. Lakhs

HDPE Granules 425.25 58000 246.65

Colorants 2.40

TOTAL 249.05

Packing materials 2025000 0.10 2.03

LAND AND BUILDING

Built up area-Sq.ft 15000

Rent p.m.-Rs per .5 per sq.ft 75000

Advance-10 months.Rs 750000

UTILITIES

POWER & WATER

Three phase- KW 150.00

Power charges Rs. lakhs p.a 48.09

Water-For process Litres per day 2000

For human consumption-

litres/day

200

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MANPOWER

Monthly wages Total

Manager 1 8000 8000

Supervisor 1 6000 6000

Skilled 24 5000 120000

Unskilled 24 3000 72000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 219000

Add benefits 20% 43800

Total per month 262800

TOTAL PER ANNUM-Rs. lakhs 31.54

SCHEDULE OF IMPLEMENTATION

After the financing arrangements are made and the premises are kept ready, the project

can be implemented in 3 months period.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 405 MT of Polyethelene Tarpaulins per annum(

equivalent to 2025000 Sq.metres of 200GSM

Tarpaulins)

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.25.00 per Sq.mt -200 GSM Tarpaulin

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.48.09 lakhs per annum at 100%

Wages and salaries Rs. 31.54 lakhs with increase 5% every year.

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Repairs and Maintenance Rs.0.60 lakh per annum with 10% increase per

annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.300000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS

1. BOOLANI ENGINEERING CORPORATION, Mumbai

2. M/s. KOLSITE MACHINE FABRIK LTD, C-1, `Gems Court', 14, Khader Nawaz

Khan Road, Nungambakkam, Chennai- 600 006

3. M/s. DGP WINDSOR INDIA LIMITED, 2-J, `Century Plaza', 560, Anna Salai

Teynampet, Chennai- 600 018

4. M/s. NEPTUNE PLASTIC & METAL INDUSTRIES, Jain Chambers

18, R.N. Mukherjee Road(7th. floor), Calcutta- 700 001

5. M/s. REMICA PLASTIC MACHINERY MFRS, GF/1, Mansi Apartments

B/h, Akik Complex, Mithakhali Six Roads, Ellisbridge, Ahmedabad - 380 009

(b) LOOM MANUFACTURERS

1. CIRTEX CORPORATION, Arun Building, Flat No. 4, 77-B, Walkeshwar Road

Mumbai-400 006.

2. GIRISH CIRCULAR LOOMS, A-415, 9th Main, 2nd Stage, Peenya Industrial Estate

Bangalore-560 058.

3. N.B. COMMERCIAL ENTERPRISES PVT. LTD, Bipin Niwas, Panchvati,

Ahmedabad - 380 006

4. CHEMPACK CORPORATION, 604, Sharada Chambers, 6th Floor

New Marine Lines, Mumbai - 400 002

5. CIRWIND MACHINE MFG. CO, Dhanjibhai Industrial Estate, Dhobighat, Dudeshwar

Ahmedabad - 380 004

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6. LOHIA STARLINGER LIMITED, 544, 7th Main Road, 9th Cross, Upper Palace Orchards,

Sadashivnagar, Bangalore - 560 080

(c) STITCHING MACHINE MANUFACTURERS

1. STITCHMAN INPLEX, 501, `Sarap', B/H, Gujarat Vidyapith, Opp. Navijivan Press

Ahmedabad-380 014.

2. GABBAR ENGINEERING CO, Ginza Machinery Compound, Plot No. 1904, GIDC

Estate, Phase III, Vatva 'F' Road, Opp. Corner Restaurant, Ahmedabad-382 445.

3. SUMECH ENGINEERS P. LTD, D-79, Okhla Industrial Area, Phase -1

New Delhi-110 20.

4. CHIRAG SALES ENTERPRISES, B-9, Jay Satyanarayana Society

Near Sahyog Surgical Hospital, Gorwa, Vadodara-390 016.

(d) CHILLING PLANT MANUFACTURERS

1. V. KRISHNA ENGINEERS, (Krishna Agro Industries), B-12, SIDCO Indl. Estate

near Padi, Chennai-600 049.

2. ARUN ENTERPRISES, 5, First Avenue, Sundar Nagar, Ekkattuthhangal,

Chennai-600 097.

3. JAFKAY CHILLING PLANTS P. LTD, 228, Shah And Nahar Industrial Estate

(A-1), Sitaram Jadhav Marg, Lower Parel, Mumbai-400 013.

4. TRUST AIRCON, 56/1, Third Main Road, Gandhinagar, Chennai-600 020.

5. FREEZE TECH, 52, Nehru Nagar, Kottivakkam, new Mahabalipuram Road

Chennai-600 041.

(e) TENSILE TESTERS MANUFACTURERS

1. KAMAL METAL INDUSTRIES, Gajjar House, Astodia Road, Ahmedabad-380 001.

2. ELECTROMECH ENGINEERS, 346, Triplicane High road, II Floor,Chennai-600 005.

(f) PRINTING MACHINE MANUFACTURERS

1. EXPERT CONVERTERS PVT. LTD, 274-C, Kiads Industrial Area, Bommasandra

Anekal Taluk, Bangalore-562 158.

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2. NEW YESH ENGINEERS, "Yesh House", 11, Amar Estate, Anil Starch Road

B/H, Kalyan Mill, Naroda, Ahmedabad-380 025.

3. N-TEX ENGINEERING WORKS, 4, Panchal Sahakari Udyog Nagar

Behind Jupiter Mill, Dudeshwar Road, Ahmedabad - 380 004

4. FLEXO LAM GRAVURES,10, Sathya Apartments, Sriniketan Colony

Road No. 3, Banjara Hills, Hyderabad - 500 034

5. TECHNOPAK ENGINEERING COMPANY, D-100, Industrial Estate

Rajaji Nagar, Bangalore - 560 044

RAW MATERIAL SUPPLIERS

1. M/s. RELIANCE INDUSTRIES LIMITED, JVL Plaza, 5th Floor, 501, Mount Road

Teynampet, Chennai - 600 018

2. M/s. NATIONAL ORGANIC CHEMICAL INDUSTRIES LTD, 8, Haddows Road

Chennai - 600 006

3. M/s. INDIAN PETROCHEMICALS CORPORATION LTD, 33, D'Silva Road

Chennai - 600 004

4. M/s. ELECTRO POLYCHEM LTD, 3, IIIrd. Floor, Wellingdon Estate

24, Ethiraj Salai, Egmore, Chennai - 600 105

5. M/s. HOECHST INDIA LTD, 3, Second Line Beach, Chennai - 600 001

6. M/s. CHEMOPLAST, O-14, Lajpat Nagar II, New Delhi - 110 024

(Imported Raw Materials)

7. M/s. LILA POLYMERS, 57/59, Kazi Syed Street,1st Floor, Bombay - 400 003

(Imported Raw Materials)

FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 7.50 Plant & Machinery 120.00 Other Misc. assets 2.00 Pre-Operative expenses 2.50 Margin for WC 5.77

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137.77 2. MEANS OF FINANCE Capital 47.77 Term Loan 90.00 137.77 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-Sq.mtrs 2025000 2025000 2025000 2025000 2025000Utilisation 60% 70% 80% 80% 80%Production/Sales-Sq.mtrs 1215000 1417500 1620000 1620000 1620000 Selling Price per Sq.Metre-Rs. 25.00 Sales Value (Rs.lakhs) 303.75 354.38 405.00 405.00 405.00 Raw Materials 149.43 174.33 199.24 199.24 199.24Packing Materials 1.22 1.42 1.62 1.62 1.62Power 28.86 33.67 38.48 38.48 38.48Wages & Salaries 31.54 33.11 34.77 36.51 38.34Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88Depreciation 18.00 15.30 13.01 11.05 9.40Cost of Production 229.65 258.49 287.85 287.70 287.96Selling, Admin, & General exp 36.00 37.80 39.69 41.67 43.75Interest on Term Loan 9.90 8.66 6.19 3.71 1.24Interest on Working Capital 2.57 2.57 2.57 2.57 2.57Total 278.12 307.52 336.30 335.65 335.52 Profit Before Tax 25.63 46.86 68.71 69.35 69.48Provision for tax 8.63 15.77 23.13 23.34 23.39Profit After Tax 17.00 31.09 45.58 46.01 46.09Add: Depreciation 18.00 15.30 13.01 11.05 9.40Cash Accruals 35.00 46.39 58.58 57.06 55.49

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Repayment of Term loan 0.00 22.50 22.50 22.50 22.50 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 6.23 25% 1.56 4.67 Consumables 2.00 0.20 25% 0.05 0.15 Finished goods 0.50 9.57 25% 2.39 7.18 Debtors 0.50 12.66 10% 1.27 11.39 Expenses 1.00 0.50 100% 0.50 0.00 29.16 5.77 23.39 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 45.58 Sales

= 405.00

11%

Profit before Interest and Tax 77.47 Total Investment

= 161.16

48%

Profit after Tax 45.58 Promoters Capital

= 47.77

95%

7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 34.77 Repairs & Maintenance 0.73 Depreciation 13.01 Admin. & General expenses 39.69 Interest on TL 6.19

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94.39 Profit Before Tax (P) 68.71

FC x 100 94.39 80 BEL = FC +P

=163.09

x 100

x 100

46% of installed capacity

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PP/HDPE WOVEN SACKS

INTRODUCTION

Jute sacks are perhaps the earliest flexible packaging products to find popularity

as cheap containers for bulk packaging of granular and powdery materials. The

principal advantages of such sacks are their cheapness, strength to withstand

rough handling and severe shock loads and established performance. The

principal disadvantages are susceptibility to insect infestation & contamination of

contents with mineral oils normally used in fibre to yarn processing and loose

fibres. Price fluctuations are related to crop size, weather conditions and a host

of other variables which influence the peasant in his decision to grow a cash crop

or a food crop. Over the years, this steady growth in jute usage had led to

genuine shortage of fibre. Multi-wall paper sacks have been expanding into this

field but rising costs of paper have made them uneconomical when heavy duty

containers are required. In recent years, synthetic sacks have emerged as a

good packaging medium for bulk packaging of fertilisers, chemicals, foodstuffs,

cement etc.

Sacks made by weaving HDPE or PP tapes are quite popular as a better

substitute for the conventional jute sacks. HDPE or PP woven sacks are

specially suitable for packaging purposes because of their number of functional

advantages over jute bags. The woven sacks are water repellant and do not rot.

These are chemically inert and therefore more suitable for packaging of various

chemicals, plastic granules etc. These sacks are much lighter in weight when

compared with identical size sacks of jute. HDPE/PP woven sacks are also

stronger and can withstand much higher impact loads, because HDPE/PP has

high tensile strength and its elongation at break is 15 to 25 per cent compared to

3 per cent for jute. Plastic woven sacks are much cleaner both in use and

production and resist fungal attack.

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Air permeable sacks made from HDPE or PP are suitable for the packaging

of potatoes, carrots, onions, grains, rice, cement etc. For packaging of fertilizers,

sugar, coffee etc., LDPE laminated woven sacks are used. Fabric woven from

HDPE/PP tapes are also ideal for the manufacture of shopping bags, deck

chairs, carpet backing etc.

Due to numerous advantages of HDPE/PP woven sacks over jute sacks,

these are finding more and more applications in packaging of a wide range of

products. They are expected to substitute jute and kraft paper bags in several

areas. This would mean a considerable saving in foreign exchange by avoiding

recurring imports of multi-wall paper. Further, their use has also resulted in an

increase in foreign exchange earnings of the country by realising more jute for

exports. The only disadvantage of plastic woven sacks is that the filled bags

cannot be handled by hooks which is possible in case of jute sacks. However, it

is necessary to educate the labourers how to handle these bags. They should be

taught not to use hooks for handling HDPE sacks, in quite contrast to

conventional bags, since hooks would tear HDPE sacks completely.

Moisture proof sacks can also be produced from coated polyethylene

fabrics or by use of loose liners. Coating as well as liners are usually of low

density polyethylene. Coated fabrics can be used for making tarpaulins also.

Multi-wall paper bags, another popular material used for packaging cement is still

largely depend on the import of kraft paper. In comparison, the raw material for

woven sacks is easily availble in the country. Further these sacks are lighter,

more economical and have superior resistance to bursting when dropped. They

also do not get damaged in contact with water or moisture like paper sacks.

Woven sacks can be made in circular looms as well as in flat looms. In

circular looms, woven fabric in tubular form is obtained, which can be converted

to bags by stitching one side (bottom). Flat looms produce an open fabric and in

this case the bag is formed by stitching three sides.

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HDPE/PP woven sacks for same size, weave density and strength, would

normally be one-fourth in weight as compared to jute bags. Consequently, the

weight per bag or per square metre of fabric would be lower. This also results in

cutting down transportation cost of empty sacks.

HDPE/PP woven fabrics are odourless. Unlike jute, these woven fabrics

can be made in different colours and can be printed in clear and multi-coloured

marking. This help in giving the sacks a nice appearance and brightness so

important for promotional purposes.

MARKET

Indian Petrochemical industry is one of the fastest growing sectors of the

economy. The petrochemical sector has an average growth at a rate of 13% per

annum, which is more than double the growth of GDP. The usage of polymers for

injection moulding and other components used in engineering plastics is bound

to increase with the increase in production of automobile vehicles, machinery and

other electrical machinery and consumer durables.

The Indian Plastic Industry has taken great strides in its quest for success. The

last few decades have seen it rise to the position of a leading force in the country

with a sizable base. The industry itself is growing at a fast pace and the per

capita consumption of plastics in the country has increased manifold as

compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities.

It has helped substitute and save scarce natural resources. It is an inseparable

part of our daily life.

Constant development in polymer technology, processing machinery, know how

and cost effective production is fast replacing plastics in every segment from its

conventional materials

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• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4

million tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and

china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100 Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding 2 3

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Material

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry

Estimate The per capita plastics consumption, which is currently at 3 kg, is projected to go

up to 7.7 kg by the year 2007. While it is true that our consumption is below the

world average of 17 kg, per capita figures should be viewed in the context of our

large population; sometimes per capita figures are useful only for trend analysis

and not in absolute terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

HDPE Woven

sacks

60 kgs 22.5 hrs 1350 kgs 405 MTs

PLANT AND MACHINERY

No. Description Qty

Price

(Nos.)

(Rs.)

1. 65 mm PP/HDPE Tape Plant with Whole Unit 30,00,000

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output of 80-90 Kgs/hr suitable for manufacture of

tapes of 700 to 1500 denier, for operating speed

upto 225 mtrs/min, complete with single screw 65 mm

extruder, drive, helical gear box, hopper, barrel, screw,

complete set of heaters for the barrel, adaptor,

T-Die, cassette type screen changer, S.S. Tank for

film quenching, edge trimmer with grinder and

pneumatic conveying device. Take Up equipments,

consist of preliminary take off with slitter assembly,

first Godet with DC drive, Orientation Hot Plate,

Combined stretching and annealing unit with DC

drive, complete with electricals, and drives.

2. KET type Cheese winders 68 Nos. 9,50,000

3. Circular Looms (Lohia) 6 Nos. 30,00,000

4. Industrial Sewing Machines 4 Nos. 1,60,000

5. Fabric Cutting Equipment 4 Nos. 1,40,000

6. Flexographic Printing M/c 1 No. 2,75,000

7. Bale Pressing M/c 1 No. 50,000

8. Chilling Plant (12 TR) 1 No. 3,80,000

9. Compressor (15 HP) 1 No. 1,50,000

10. Tensile Tester 1 No. 1,50,000

11. Weighing Machine 3 Nos. 80,000

12. Cheese Pipes 3,20,000

13. Transformer & Electrical Distribution Panel. 5,20,000

14. Water Pump 40,000

15. Generator (200 KVA) 12,85,000

Total 105,00,000

MANAFACTURING PROCESS

Blown tubular film of PP/HDPE is first produced by extruder, which is equipped

with a suitable die, cooling ring, temperature and process controls etc. From the

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extruder, the film is taken off in a vertical take off tower, which has air-blowing

arrangements.

The film then goes to a slitting unit where it is slit into tapes of 6 to 12 mm width

depending upon the requirements. The tapes thus made are conveyed to

stretching orientation oven in which hot air circulates at controlled temperature.

The tapes are stretched to the desired level. The oriented tapes are passed

through a second godet station and then through the stabilizing oven. The

stabilized tapes are passed through a third godet station and then to a cheese

winder unit where each tape is wound on a separate cheese. The monoaxially-

oriented tapes of PP/HDPE produced are woven into fabrics in circular looms.

The necessary working machine and pirn winders are provided. The woven

fabric can then be stitched into bags in an industrial stitching machine.

After converting the fabric into bags, it is printed with suitable ink wherever

necessary. For some cases laminated woven sacks are used. For packaging of

fertilizers, it is necessary to laminate the fabric before making it into bags.

Whereas, in woven sacks, for cement packaging, lamination is not required.

Extrusion coating of LDPE does lamination. Now-a-days PP sacks are becoming

more popular on account of their better tensile strength (25 to 30% more) and

higher tenacity compared HDPE sacks of equivalent Denier. Therefore, at

equivalent raw material price, PP sacks are expected to be much more

economical than HDPE sacks. Further PP tapes/fabrics have 30 to 40% higher

co-efficient of friction in comparison to HDPE tapes/fabrics leading to better and

higher stack ability of sacks. The softening temperature of PP is higher than that

of HDPE and hence PP sacks are more suitable for products which are filled hot.

In this report, the production of PP sacks alone is considered.

RAW MATERIALS

For MT 405

Qty-MTs Rate/MT Value Rs.Lakhs

PP/HDPE 433 65000 281.45

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Misc additives 2.40

TOTAL 283.85

Packing materials 405 500.00 2.03

LOCATION LAND AND BUILDING

Built up area-Sq.ft 15000

Rent p.m.-Rs per .5 per sq.ft 75000

Advance-10 months. Rs 750000

UTILITIES

Power & water

Three phase- KW 150.00

Power charges Rs. lakhs p.a 48.09

For process-Litres per day 0

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 8000 8000

Skilled 24 5000 120000

Unskilled 24 3000 72000

Accounts Assistant 2 4000 8000

Sales Executive 1 5000 5000

Security 3 2000 6000

sub total 219000

Add benefits 20% 43800

Total per month 262800

TOTAL PER ANNUM-Rs. lakhs 31.54

SCHEDULE OF IMPLEMENTATION

After the necessary financing arrangements are made the project implementation

will take about 3 months time.

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COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 405 Mts of HDPE woven sacks per annum

equivalent to 8100000 bags of 50 Gms each.

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.107 per kg (Rs.3.96 per bag)

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.48.09 lakhs per annum at 100%

Wages and salaries Rs. 31.54 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% increase per

annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.50000 per month with 5% annual increase.

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS:

1. M/s. Brimco Plastic Machinery Corpn. Ltd., 55, Govt. Industrial Estate,

Kandivilli (E), Mumbai-400 006.

2. M/s. Faroni Enterprises,10, Anderson Street, Chennai - 600 001.

3. M/s. Neptune Plastics & Metal Industries,18, R.N. Mukherjee Road(7 th Floor)

Calcutta - 700 001.

4. M/s. Jolite Industries, No.7 Meenambal Salai, Kaviyarasu Kannadasan Nagar

Chennai - 600 051.

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5. M/s. Golden Engineering Industries, 8797, Shidipura Crossing, Rani Jhansi Road

New Delhi- 110 055.

6. M/s. Kolsite Machine Fabrik Ltd., P.O. Box No. 11902, Off Veeradesai Road

Mumbai - 400 053.

7. M/s. Boolani Engineering Corpn., 402, Veer Savarkar Road, Prabhadevi Indl. Estate,

Bombay-400 025.

8. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600

018.

9. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka,

Andhari East Mumbai – 500 072.

10. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–

382415,

11. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad –

121005.

12. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase

1 Valva,

Ahmedabad – 382445

13. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

LIST OF RAW MATERIAL SUPPLIERS

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641006,

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079,

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastIcs, 57/2, Thirupalli Street – 79,

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

6. Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

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11

FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 7.50 Plant & Machinery 105.00 Other Misc. assets 0.50 Pre-Operative expenses 1.00 Margin for WC 6.00 120.00 2. MEANS OF FINANCE Capital 41.25 Term Loan 78.75 120.00 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-MTs 405 405 405 405 405 Utilisation 60% 70% 80% 80% 80% Production/Sales-MTs 243 284 324 324 324 Selling Price per MT-Rs. 1.07lakhs Sales Value (Rs.lakhs) 260.01 303.88 346.68 346.68 346.68 Raw Materials 170.31 198.70 227.08 227.08 227.08 Packing Materials 1.22 1.42 1.62 1.62 1.62 Power 28.86 33.67 38.48 38.48 38.48 Wages & Salaries 31.54 33.11 34.77 36.51 38.34 Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88 Depreciation 15.75 13.39 11.38 9.67 8.22 Cost of Production 248.28 280.95 314.06 314.16 314.62 Selling, Admin, & General exp 6.00 6.30 6.62 6.95 7.30

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12

Interest on Term Loan 8.66 7.58 5.41 3.25 1.08 Interest on Working Capital 2.53 2.53 2.53 2.53 2.53 Total 265.47 297.36 328.62 326.89 325.53 Profit Before Tax -5.46 6.52 18.06 19.79 21.15 Provision for tax 0.00 2.20 6.08 6.66 7.12 Profit After Tax -5.46 4.32 11.98 13.13 14.03 Add: Depreciation 15.75 13.39 11.38 9.67 8.22 Cash Accruals 10.29 17.71 23.36 22.80 22.25 Repayment of Term loan 0.00 19.69 19.69 19.69 19.68 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 7.10 25% 1.78 5.32 Consumables 2.00 0.20 25% 0.05 0.15 Finished goods 0.50 10.34 25% 2.59 7.75 Debtors 0.50 10.83 10% 1.08 9.75 Expenses 1.00 0.50 100% 0.50 0.00 28.97 6.00 22.97 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 11.98 Sales

= 346.68

3%

Profit before Interest and Tax 26.00 Total Investment

= 142.97

18%

Profit after Tax 11.98 Promoters Capital

= 41.25

29%

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13

7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 34.77 Repairs & Maintenance 0.73 Depreciation 11.38 Admin. & General expenses 6.62 Interest on TL 5.41 58.91 Profit Before Tax (P) 18.06

FC x 100 58.91 80 BEL = FC +P

=76.97

x 100

x 100

61% of installed capacity

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14

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PTFE (TEFLON) INDUSTRIAL PRODUCTS

INTRODUCTION

TEFLON has high impact strength and the resistance for high temperature. The

electrical insulation properties are very high and equal to polypropylene. Teflon

has excellent self lubricating property and therefore it is used in rings, oil seals

gaskets, rods, bushes and bearings. It has wide applications in automobiles,

electricals and chemical industries.

MARKET POTENTIAL

The user industries namely automobiles, electricals and chemical industries are

growing faster and therefore there is a good demand for the TEFLON products.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

PTFE(TEFLON)

Products

7.5 kgs 8 60 kgs 18000 Kgs

PLANT AND MACHINERY

S.no Items Qty Value Rs. lakhs

1 Hydraulic Press -150 Tonnes 1 4.00

2 Hydraulic Press -50 Tonnes 1 1.50

3 Hydraulic Press -25 Tonnes 1 1.00

4 Sintering oven 1 3.50

5 Lathe machine/grinding 1 3.00

6 Moulds 1 set 1.00

7 Testing equipment 1 1.00

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15.00

MANUFCTURING PROCESS

Teflon moulding powder is filled in the mould and pressed in the hydraulic press

to get the intermediate product. It is then sintered in the oven at 600degree

where the Teflon products are fused with each other to the strength. The product

is cooled and machined in high speed lathe according to the size required.

RAW MATERIALS

For MTS 18

Qty-MTs Rate/MT Value Rs. Lakhs

Teflon Powder 18.54 850000 157.59

TOTAL 157.59

Packing materials 18.00 10000.00 1.80

LAND AND BUILDING

Built up area-Sq.ft 1500

Rent p.m.-Rs per .5 per sq.ft 7500

Advance-10 months. Rs 75000

UTILITIES

POWER & WATER

Three phase- KW 30.00

Power charges Rs. lakhs p.a 3.42

Water-For process-Litres per

day

0

For human consumption-

litres/day

200

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MANPOWER

Monthly wages Total

Supervisor 1 6000 6000

Skilled 4 5000 20000

Unskilled 6 3000 18000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 57000

Add benefits 20% 11400

Total per month 68400

TOTAL PER ANNUM-Rs. lakhs 8.21

SCHEDULE OF IMPLEMENTATION

After arranging for funding the project and making available the premises, the

project can be implemented in a period of three months.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 18 MTs of PTFE(TEFLON ) products per

annum.

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.11.50 lakhs per MT(Rs11500 per kg)

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.3.42 lakhs per annum at 100%

Wages and salaries Rs. 8.21 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

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increase.

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS

1.Rubber Machinery Corporation, 3-Cawal street, Kolkata,

2.Excellent Engineers, NH.8 Near Dahisar Check Naka,PO Meera 401104, Thane

3.Hindustan Hydraulic Pvt ltd, Vikramaditya Towers, HP-1,First Floor,

Alakananda Shoping complex, Kalkaji, New Delhi.

4.Nuchem Plastics Ltd, Engineering division, Faridabad 121 006

5.D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

6.Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka,

Andhari East, Mumbai – 500 072.

7.Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

8.Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005.

9.Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

Ahmedabad – 382445

10.HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

RAW MATERIAL SUPPLIERS

1.Hindustan Flourocarbons, 1042-Babukhan Estate, Basheerbagh, Hydearbad-500001

2.Gujarat Flourocarbons Ltd, Vadodara, Gujarat,

3.Dupont , Chennai

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FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 0.75 Plant & Machinery 15.00 Other Misc. assets 0.50 Pre-Operative expenses 1.50 Margin for WC 3.00 20.75 2. MEANS OF FINANCE Capital 9.50 Term Loan 11.25 20.75 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-MTs 18 18 18 18 18 Utilisation 60% 70% 80% 80% 80% Production/Sales-MTs 11 13 14 14 14 Selling Price per MT-Rs. 11.50lakhs Sales Value (Rs.lakhs) 126.50 149.50 161.00 161.00 161.00 Raw Materials 94.55 110.31 126.07 126.07 126.07 Packing Materials 1.08 1.26 1.44 1.44 1.44 Power 2.05 2.39 2.74 2.74 2.74 Wages & Salaries 8.21 8.62 9.05 9.50 9.98

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Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88 Depreciation 2.25 1.91 1.63 1.38 1.17 Cost of Production 108.74 125.15 141.66 141.93 142.28 Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38 Interest on Term Loan 1.24 1.08 0.77 0.46 0.16 Interest on Working Capital 1.23 1.23 1.23 1.23 1.23 Total 114.81 131.24 147.63 147.79 148.05 Profit Before Tax 11.69 18.26 13.37 13.21 12.95 Provision for tax 3.94 6.15 4.50 4.45 4.36 Profit After Tax 7.75 12.11 8.87 8.76 8.59 Add: Depreciation 2.25 1.91 1.63 1.38 1.17 Cash Accruals 10.00 14.02 10.50 10.14 9.76 Repayment of Term loan 0.00 2.81 2.81 2.81 2.82 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 3.94 25% 0.99 2.95 Consumables 2.00 0.18 25% 0.05 0.13 Finished goods 0.50 4.53 25% 1.13 3.40 Debtors 0.50 5.27 10% 0.53 4.74 Expenses 1.00 0.30 100% 0.30 0.00 14.22 3.00 11.22 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 8.87 Sales

= 161.00

6%

Profit before Interest and Tax 15.37 Total Investment

= 31.97

48%

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Profit after Tax 8.87 Promoters Capital

= 9.50

93%

7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 9.05 Repairs & Maintenance 0.73 Depreciation 1.63 Admin. & General expenses 3.97 Interest on TL 0.77 16.15 Profit Before Tax (P) 13.37

FC x 100 16.15 80 BEL = FC +P

=29.52

x 100

x 100

44% of installed capacity

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1

PVC COMPOUNDS

INTRODUCTION

The most versatile thermoplastic material commercially available in a variety of

compounded forms to cover a wide range of hardness and flexibility applications is PVC.

It has good physical strength and excellent resistance to water and chemicals. The PVC

characteristics are when the flame is withdrawn and difficult to ignite and have self-

extinguishing. PVC resin is liable to degradation on heating and is a very tricky material

to process, unless properly compounded. This places a great deal of responsibility on

the compounding technologist.

The use of compounding is to mix the resin and other additives into a homogeneous

state of processing. These compounds use for the manufacture of finished products. It is

impossible to process PVC resin without the addition of certain compounding ingredients

such as heat stabilizers and lubricants. The problem is economy in cost and better

quality. PVC compound are two type, granulated compounded.

MARKET

Indian Petrochemical industry is one of the fastest growing sectors of the economy. The

petrochemical sector has an average growth at a rate of 13% per annum, which is more

than double the growth of GDP. The usage of polymers for injection moulding and other

components used in engineering plastics is bound to increase with the increase in

production of automobile vehicles, machinery and other electrical machinery and

consumer durables.

The Indian Plastic Industry has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

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2

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our

daily life.

Constant development in polymer technology, processing machinery, know how and

cost effective production is fast replacing plastics in every segment from its conventional

materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

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3

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100 Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermosets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go up to

7.7 kg by the year 2007. While it is true that our consumption is below the world average

of 17 kg, per capita figures should be viewed in the context of our large population;

sometimes per capita figures are useful only for trend analysis and not in absolute

terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

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4

annum

PVC

Compounds

50 kgs 16 800 kgs 240 MT

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. High speed mixer and cooler with 1 3,50,000

batch cap.40 kg. with cooling system

and 25 HP motor

2. Extruder - 65 mm with accessories, 1 4,00,000

control panels, water cooling system, special

cutting edge ladder with starter

3. 15" Scrap Grinder (10 HP) 1 120,000

4. Cost of dies, Testing Equipments etc. 130,000

Total 10,00,000

MANAFACTURING PROCESS

Dry blend PVC resin is added to high speed mixer and the stirrer is run for few minutes

in order to remove any moisture/volatile matter. Requisite quantities of plasticiser,

stabilizer, pigment, fillers are then added. Due to high speed rotation of the stirrer,

sufficient high temperature is generated in the mixing unit. Lubricant may be added in

the end approximately at a time when the temperature is 10 deg. C below the final

temperature. Blender is then switched off and the compound mix is allowed to cool in

cooling trays. The compound can be directly processed on conversion machines.

Granulated Compound - The process consist of mixing the PVC compounding

ingredient in the form of powder compound as described above. This powder compound

is then fed to extrusion unit and extruded in form of solid cords which are then cut in the

form of granules.

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5

Certain typical formulations for PVC compound required for some general purpose

applications are as given under. However, the actual formulation would depend on the

performance requirements of the end product for which the compound is formulated and

also the cost considerations.

Wire and Electrical Cables Parts by weight

PVC resin 100

Stabiliser 3

Primary Plasticizer 30

Secondary Plasticizer 25 Lubricant 1

Filler 50

Pigment Base 0.3

Pigment as required

Rigid PVC Pipes Parts by weight

PVC resin 100

Stabiliser (non-toxic) 5

Primary Plasticizer 1.5

Secondary Plasticizer 5

Internal Lubricant 3

External Lubricant 4

Epoxy Plasticizer 1.5

Pigment base 0.3

Pigment as required

Clean Extruded Tubing Parts by weight

PVC resin 100

Stabilizer 3

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6

Primary Plasticizer 3

Internal Lubricant 0.50

External Lubricant 0.50

Organic Chelator 0.75

Blue Pigment as required

Rigid PVC Sheet Parts by weight

PVC resin 100

Stabilizer 3

Organic Chelator 1

Lubricant 0.5

RAW MATERIALS

For MTS 240

Qty-MTs Rate/MT Value Rs. Lakhs

PVC resins 167.52 40000 67.01

DOP 41.88 60000 25.13

CPW 8.28 18000 1.49

Fillers 26.76 30000 8.03

Stabilisers 5.04 70000 3.53

Lubricants 1.92 55000 1.06

Pigments 1.32 170000 2.24

TOTAL 108.48

Packing materials 240 1000 2.40

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2000

Rent p.m.-Rs per .5 per sq.ft 10000

Advance-10 months.Rs 100000

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7

UTILITIES

Three phase- KW 50.00

Power charges Rs. lakhs p.a 11.40

Water-For process-Litres per

day

2000

For human consumption-

litres/day

200

MANPOWER

Nos Monthly wages Total

Skilled 2 5000 10000

Unskilled 6 3000 18000

Accounts Assistant 1 4000 4000

Security 1 2000 2000

sub total 34000

Add benefits 20% 6800

Total per month 40800

TOTAL PER ANNUM-Rs. lakhs 4.90

SCHEDULE OF IMPLEMENTATION

After the financial arrangements are made the project can be implemented in 3 months

times.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 240 MT of PVC compounds per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.60.00 per kg

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8

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.11.40 lakhs per annum at 100%

Wages and salaries Rs. 4.90 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.20000 per month

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS 1. M/s Kolsite Industries, P. B. No. 7386, 31, Shah Industrial Estate, Bombay. 2. M/s R. H. Windsor (India) Ltd., E-6, U Road, Thane Indl. Estate, Thana. 3. M/s Brimco Pvt. Ltd., Brimco House, 55 - Govt. Industrial Estate, Kandivili (E), Bombay. 4. M/s Kirti Thermoplast Engineering Works, 3, Panchal Sahakari Udyognagar Dhudeshwar, Ahmedabad-1. 5. M/s Remica Plastic Machinery Manufacturers, Opp. Rustom Hills, Dhudeshwar Road, Allahabad-1. 6. M/s Polyene General Industries Pvt. Ltd., 11-A, Industrial Estate, Guindy, Chennai-600 032. 7. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018. 8. Europack Machines India Pvt Ltd, 52 Bindhal Industrial Estate, Sakinaka, Andhari East, Mumbai – 500 072. 9. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415, 10. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005. 11. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva, Ahmedabad – 382445 12. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032. LIST OF RAW MATERIAL SUPPLIERS 1. M/s Indian Petrochemicals Ltd., Jawahar Nagar, Baroda. 2. M/s Chika Ltd., Mehta Chambers, 13, Mathew Road, Bombay-400 004. 3. M/s Harshadrey Pvt. Ltd., JIJI House, Raveline Street, Bombay-400 001.

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9

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs. lakhs]

Land & Building (Advance) 1.00

Plant & Machinery 10.00

Other Misc. assets 0.50

Pre-Operative expenses 1.50

Margin for WC 2.24

15.24

2. MEANS OF FINANCE

Capital 7.74

Term Loan 7.50

15.24

Term Loan is assumed at 75% of the Machinery value.

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs.lakhs]

Years 1 2 3 4 5

Installed Capacity-MTs 240 240 240 240 240

Utilisation 60% 70% 80% 80% 80%

Production/Sales-MTs 144 168 192 192 192

Selling Price per MT-Rs. 0.6 lakhs

Sales Value (Rs.lakhs) 86.40 100.80 115.20 115.20 115.20

Raw Materials 65.09 75.94 86.79 86.79 86.79

Packing Materials 1.44 1.68 1.92 1.92 1.92

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10

Power 6.84 7.98 9.12 9.12 9.12

Wages & Salaries 4.90 5.14 5.40 5.67 5.95

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 1.50 1.28 1.08 0.92 0.78

Cost of Production 80.37 92.68 105.04 105.22 105.44

Selling, Admin, & General exp 2.40 2.52 2.65 2.78 2.92

Interest on Term Loan 0.83 0.72 0.51 0.31 0.10

Interest on Working Capital 0.88 0.88 0.88 0.88 0.88

Total 84.48 96.80 109.08 109.19 109.34

Profit Before Tax 1.92 4.01 6.12 6.01 5.86

Provision for tax 0.65 1.35 2.06 2.02 1.97

Profit After Tax 1.27 2.66 4.06 3.99 3.89

Add: Depreciation 1.50 1.28 1.08 0.92 0.78

Cash Accruals 2.77 3.93 5.14 4.91 4.67

Repayment of Term loan 0.00 1.88 1.88 1.88 1.86

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 2.71 25% 0.68 2.03

Consumables 2.00 0.24 25% 0.06 0.18

Finished goods 0.50 3.35 25% 0.84 2.51

Debtors 0.50 3.60 10% 0.36 3.24

Expenses 1.00 0.30 100% 0.30 0.00

10.20 2.24 7.96

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11

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 4.06

Sales

=

115.2

0

4%

Profit before Interest and Tax 7.51

Total Investment

=

23.20

32%

Profit after Tax 4.06

Promoters Capital

=

7.74

52%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs.lakhs]

Wages & Salaries 5.40

Repairs & Maintenance 0.73

Depreciation 1.08

Admin. & General expenses 2.65

Interest on TL 0.51

10.37

Profit Before Tax (P) 6.12

FC x

100

10.37 80 BEL =

FC +P

=

16.49

x

100

x

100

50% of installed capacity

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1

PVC INSULATION TAPES

INTRODUCTION

For manufacturing Electrical insulation tapes cotton fabrics or PVC can be used.

Pressure sensitive PVC Tapes have become very popular as an electrical insulation

material. The major characteristics of insulation tapes are that they should be water

resistant, oil resistant and temperature resistant.

The pressure sensitive adhesives are composed of a rubbery type elastomer combined

with liquid or solid resin tackifier component. Sometimes, a mixture of resins can also be

used to obtain specific properties otherwise not obtainable by using the resins singlely.

The rheological properties of the adhesive can be altered by the addition of fillers. Anti-

oxidants are used to stabilize the adhesive against oxidation, and light and heat

degradation. Adhesives for electrical insulation and high temperature applications,

sometimes contain a small amount of a heat curing oil or soluble phenolic resin. In this

case, an alkaline filler or zinc resinate is used as a catalyst to promote the reaction

between the phenolic resin and rubber. The adhesives are cured by the application of

heat.

The films are generally coated with a very thin anchor coating called a primer, to

improve the bonding of the adhesive to backing.

MARKET

Plastics have become an important part of modern life and are used in different sectors

of applications like packaging, building materials, consumer products and much more.

Each year about 100 million tons of plastics are produced worldwide.

Demand for plastics in India reached about 4.3 million tons in the year 2001-02 and

would increase to about 8 million tons in the year 2006-07. Currently, however, the per

capita consumption of plastics in India is only about 3 kg compared to 30-40 kg in the

developed countries. The present market in India is of about Rs. 25,000 crore.

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2

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

PVC Insulation

Tape

275 8 2200 660000 Sq ft

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. One meter working width Adhesive Whole Unit 28,50,000

Coating Plant for PVC Tapes consisting of the following :

(i) Unwinder for Primary Web with tension control. 1

(ii) Rotogravure Printing unit 1

(iii) Drying Tunnel - 60 ft. length 1

(iv) Chilling Roll/Surface Support Roll 1

(v) Pneumatic/Hydraulic web aligner 1

(vi) Dancing Roller, Accumulator, Rewinder 1 each

(vii) A.C. & D.C. Motors, Control cabinets,

Air Blowers with Temperature Controllers etc.

2. Slicing M/c. complete with 2 HP Whole Unit 6,50,000

Motor, Starter & Circular Knives.

3. Attriator cum Emulsifier 200 Lit. " 1,25,000

capacity with 5 HP A.C. Motor.

4. 12" X 26" Three Roll Mass Grinding 2,75,000

M/c. with 15 HP Motor, Gear Box & Starter.

5. Testing Equipments 1,00,000

Total 40,00,000

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MANAFACTURING PROCESS

The present project envisages production of PVC Self-adhesive Electric Insulation

Tapes from PVC film rolls procured from market. The manufacturing process essentially

consists of the following major operations.

1. Manufacture of the adhesive mass.

2. Application of primer and adhesive coating to the PVC film.

3. Drying of the adhesive coating at the required temperature.

4.Cutting the film rolls into tapes of required width.

5. The required length of the finished tapes are wound on cores and suitably

packed for despatch.

Typical compositions of Primer coat and Adhesive coat are as follows :

PRIMER COAT :

Ingredient Parts by Wt.

PVC Paste 60

Copolymer of Ethyl Acrylate 40

Methyl Methacrylate, and

Methacrylic acid

Titanium Dioxide 20

Dilute Acetic Acid 10

ADHESIVE COAT :

Ingredient Parts by Wt.

2-Ethyl Hexyl Acrylate 360

Acrylic Acid 6

Ethyl Acetate 120

Nonyl Phenol Ethelene 25

Ammonium Persulphate 1

Sodium Metabisulphate 2

Sodium Acetate 2

Water 500

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4

The films are often coated on the opposite side with a release agent to reduce the

adhesion of the adhesive to the backings of the next layer of tape when finished in roll

form.

RAW MATERIALS

For Sq. metres 660000

Qty-MTs Rate/MT Value Rs. Lakhs

PVC film-100 72.00 65000 46.80

Rubber based adhesive 36.00 50000 18.00

Core for winding 0.00 0 1.65

TOTAL 66.45

Packing materials 660000 0.50 3.30

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2500

Rent p.m.-Rs per .5 per sq.ft 12500

Advance-10 months.Rs 125000

UTILITIES

Three phase- KW 54.00

Power charges Rs.lakhs p.a 12.31

Water-For process-Litres per day 2000

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Supervisor 1 6000 6000

Skilled 2 5000 10000

Unskilled 6 3000 18000

Accounts Assistant 1 4000 4000

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5

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 38000

Add benefits 20% 7600

Total per month 45600

TOTAL PER ANNUM-Rs. lakhs 5.47

SCHEDULE OF IMPLEMENTATION

After the financial arrangements are made the project can be implemented in 3 months

times.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 6,60,000 Sq. Mtrs. of PVC Insulation Tapes per

annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.19.00 per Sq. metre

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.12.30lakh per annum at 100%

Wages and salaries Rs. 5.47 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

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6

MACHINERY SUPPLIERS:

1. M/s.Babubhai Ambalal, Division of Sarabhai Machinery, Shahibag House, Ist Floor

15, Walchand Hirachand Road, Ballard Estate, Mumbai - 400 038.

2. M/s.Goldman Automatics Pvt. Ltd, 75, Village Road, Bhandup, Mumbai - 400 078.

3. M/s.Hero Precision Machines Pvt. Ltd.,136, Arcot Road, Chennai - 600 093.

4. M/s. Micromeritics Engineers Pvt. Ltd., No. 298, K.S. Est Pantheon Road, Egmore

Chennai - 600 008. (Machinery for Rubber Adhesive Mfg.)

5. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

6. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari East

Mumbai – 500 072.

7. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

8. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005.

9. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

Ahmedabad – 382445

10. HMT International Ltd, 52 HMT Bhavan, Bellary Road, Bangalore – 560 032.

ADDRESSES OF RAW MATERIALS & OTHER CONSUMABLES SUPPLIERS

PVC FILM :

1. M/s. The Supreme Industries Ltd.,17/18, Shah Industrial Estate, Veera Desai Road

Andheri(West), Mumbai - 400 058.

2. M/s. Caprihans India Ltd., Block - D, Shivsagar Estate, Dr. Annie Besant Road Worli

Mumbai - 400 018.

3. M/s. Sun Poly Industry, 28-D, Kalathiappa Street, Choolai, Chennai - 600 112.

4. M/s. Amisha Vinyls Ltd., Ganesh Industrial Estate, Kachigam, Daman (U.T.).

CHEMICALS SUPPLIERS FOR ADHESIVE MANUFACTURING

1. M/s. R. K. Polymers, 196/5, Govindappa Naicken Street, Chennai - 600 001.

2. M/s. Jayashree Impex, 59-A, `Ragamalika' 1st Avenue, Ashok Nagar, Chennai - 600 083.

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7

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs.lakhs]

Land & Building (Advance) 1.25

Plant & Machinery 40.00

Other Misc. assets 0.50

Pre-Operative expenses 1.50

Margin for WC 1.75

45.00

2. MEANS OF FINANCE

Capital 15.00

Term Loan 30.00

45.00

Term Loan is assumed at 75% of the Machinery value

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs.lakhs]

Years 1 2 3 4 5

Installed Capacity-Sq.metres 660000 660000 660000 660000 660000

Utilisation 60% 70% 80% 80% 80%

Production/Sales-Sq.mts 396000 462000 528000 528000 528000

Selling Price per Sq.mtrRs. 19

Sales Value (Rs.lakhs) 75.24 87.78 100.32 100.32 100.32

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8

Raw Materials 39.87 46.52 53.16 53.16 53.16

Packing Materials 1.98 2.31 2.64 2.64 2.64

Power 7.39 8.62 9.85 9.85 9.85

Wages & Salaries 5.47 5.75 6.04 6.34 6.66

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 6.00 5.10 4.34 3.68 3.13

Cost of Production 61.31 68.96 76.76 76.47 76.32

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 3.30 2.89 2.06 1.24 0.41

Interest on Working Capital 0.69 0.69 0.69 0.69 0.69

Total 68.90 76.32 83.48 82.57 81.80

Profit Before Tax

6.34

11.46

16.85

17.75

18.52

Provision for tax 2.13 3.86 5.67 5.97 6.23

Profit After Tax 4.21 7.60 11.18 11.78 12.29

Add: Depreciation 6.00 5.10 4.34 3.68 3.13

Cash Accruals 10.21 12.70 15.51 15.46 15.42

Repayment of Term loan 0.00 7.50 7.50 7.50 7.50

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 1.66 25% 0.42 1.24

Consumables 2.00 0.33 25% 0.08 0.25

Finished goods 0.50 2.55 25% 0.64 1.91

Debtors 0.50 3.14 10% 0.31 2.83

Expenses 1.00 0.30 100% 0.30 0.00

7.98 1.75 6.23

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9

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 11.18

Sales

=

100.3

2

11%

Profit before Interest and Tax 19.60

Total Investment

=

51.23

38%

Profit after Tax 11.18

Promoters Capital

=

15.00

75%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]

Wages & Salaries 6.04

Repairs & Maintenance 0.73

Depreciation 4.34

Admin. & General expenses 3.97

Interest on TL 2.06

17.14

Profit Before Tax (P) 16.85

FC x

100

17.14 80 BEL =

FC +P

=

33.98

x

100

x 100

40% of installed capacity

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1

PVC PIPE FITTINGS

INTRODUCTION

The conventional metal pipes are already started replacing by PVC pipes. Due to the

chemical resistant properties the PVC pipe fittings are widely used in these areas. The

most commonly used PVC fittings are Sockets, T’s , Elbows, Bends and Joints. Most of

these fittings are manufactured by injection moulding in different sizes corresponding to

the size of PVC pipes.

MARKET

The PVC pipe fittings are widely used in the housie constructions and commercial

constructions. There is shortage of approx. 30 million dwelling units in the country which

need an investment of approx. Rs.4,00,000 crores or approx. 80 billion US dollars

including cost of services like water supply, roads, electricity, sewerage system etc.

National Housing and Habitat Policy has aimed at providing shelter for all by 2010.

Government is committed to provide 2 million dwelling units per year. This is a

tremendous opportunity for real estate companies to en-cash. This will boost the

demand for PVC pipe fittings

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

PVC Pipe

Fitting

25 Nos 8 200 Nos 60 MT

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2

PLANT AND MACHINERY

No. Description Qty Price

(Nos.) (Rs.)

1. Automatic Injection moulding 1 16,00,000

machine of shot capacity up to 500 gms with

Hydraulic pump & motor and mould clamping

Force of 180 metric tonnes.(35 KW)

2. Water cooling unit 1 1,00,000

3. Scrap grinder (18"), 7.5 HP 1 75,000

4. Avery type weighing machine 1 20,000

5. Chemical testing laboratory 75,000

consisting of chemical balance, oven,

equipment etc.

6. Dies & moulds of assorted sizes 2,80,000

7. Small tools such as greasing and 50,000

common electrical lighting equipment

Total 22,00,000

MANAFACTURING PROCESS

PVC fittings are made on the injection moulding machines. The PVC compound is fed

into the hopper of the injection moulding machine which essentially has a mould locking

and injection arrangements. The mould is held in-between the platens which are kept

closed by the locking pressure and the materials which get plasticised by the heating

arrangements, is injected under this pressure into mould which results into a moulded

and high quality product. Mould should have proper injection arrangement for

consistent high production.

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3

RAW MATERIALS

Qty-MTs Rate/MT ValueRs. Lakhs

Rigid PVC compound 60.00 48000 28.80

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2000

Rent p.m.-Rs per .5 per sq.ft 10000

Advance-10 months.Rs 100000

UTILITIES

Three phase- KW 52.00

Power charges Rs.lakhs p.a 5.93

Water-For process-Litres per day 2000

For human consumption-

litres/day

200

MANPOWER

Monthly wages Total

Supervisor 1 6000 6000

Skilled 2 5000 10000

Unskilled 4 3000 12000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 41000

Add benefits 20% 8200

Total per month 49200

TOTAL PER ANNUM-Rs. lakhs 5.90

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4

SCHEDULE OF IMPLEMENTATION

The project can be implemented within 3 months period after making necessary

arrangements for the finance and the building for the factory.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 60 MT of various fittings per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.100.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.5.93 lakh per annum at 100%

Wages and salaries Rs. 5.90 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS

1. M/s R. H. Windsor (India) Ltd., U Road, Thana Industrial Estate, Thana.

2. M/s International Plastic Machinery Co., Street No. 1, Anand Parbat Industrial Area,

New Delhi.

3. M/s Golden Engg. Industries, 87997, Shidipura Cross, Rani Jhansi Road,

New Delhi-110 005.

4. M/s Indian Hydraulic Industries, 70, Safarjung Road, New Delhi.

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5

5. M/s Bakubhai Ambalal Pvt. Ltd., Shanti Sadan, Mirazpur Road, Ahmedabad-390 001. 6. M/s Niranjan Plastics, 19/7, Botawala Bldg., Sitladevi Temple Road, Mahim, Bombay-400 016. 7. M/s Engel India Machine Tools Ltd., 1, Tara Tolla Road, Calcutta. 8. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018. 9. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari East, Mumbai – 500 072. 10. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415, 11. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad – 121005. 12. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva, Ahmedabad – 382445 13. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

ADDRESSES OF RAW MATERIAL AND OTHER CONSUMABLE SUPPLIERS

(a) PVC Compounds

1. M/s Shriram Chemical Industries, Shrirampura, Kota. 2. M/s National Organic Chemical Ind. Ltd., Sandoz House, Dr. A. B. Road, Worli, Bombay-400 018. 3. M/s Chemplast, Dhun Bldg., 175/1, Mount Road, Chennai-600 002. 4. M/s Plastic Resin & Chemicals Ltd., Bharat Insurance Bldg., 15-A, Harniman Circle, Bombay-400 001. 5. M/s Plasticolours Corpn., Plot 430, GIDC Indl. Estate, Odhav (Dist.) Ahmedabad. 6. M/s East Anglia Plastic (India) Ltd., 3, Carmac Street, Calcutta-700 016.

(b) Lubricants/processing aids, pigments, stabilizer

1. M/s Sudarshan Chemicals Inds. Ltd., 162, Wellesly Road, Pune-411 001. 2. M/s Colours Chemical Ltd., 194, Dinshaw Vachha Road, Churchgate,Bombay-400 002. 3. M/s Chika Ltd., Mehta Chambers, 13, Mathew Road, Bombay-400 004. 4. M/s Dura Chemical Corpn. Pvt. Ltd.,11, Sprott Road, Ballard Estate, Bombay-400 001. 5. M/s Waldies Ltd., A-1, Gillander House, Netaji Subhash Road, Calcutta-700 001. 6. M/s A.L.A. Chemical Pvt. Ltd., Mahalaxmi Chambers, Bhulabhai Desai Road, Bombay-400 020. 7. M/s Indian Vegetable Products, Forbes Building, Home Street, Bombay-400 001. 8. M/s Indokem Pvt. Ltd., Fort House, 221, H. N. Road, Bombay-400 001. 9. M/s Hico Products Pvt. Ltd., Mogallane, Mahim, Bombay-400 016.

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6

FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs.lakhs]

Land & Building (Advance) 1.00

Plant & Machinery 22.00

Other Misc. assets 0.50

Pre-Operative expenses 2.00

Margin for WC 0.97

26.47

2. MEANS OF FINANCE

Capital 9.97

Term Loan 16.50

26.47

Term Loan is assumed at 75% of the Machinery value

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs. lakhs]

Years 1 2 3 4 5

Installed Capacity-MTs 60 60 60 60 60

Utilisation 60% 70% 80% 80% 80%

Production/Sales-MTs 36 42 48 48 48

Selling Price per MT-Rs. 1.00lakh

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7

Sales Value (Rs.lakhs) 36.00 42.00 48.00 48.00 48.00

Raw Materials 17.28 20.16 23.04 23.04 23.04

Packing Materials 0.36 0.42 0.48 0.48 0.48

Power 3.56 4.15 4.74 4.74 4.74

Wages & Salaries 5.90 6.20 6.51 6.84 7.18

Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88

Depreciation 3.30 2.81 2.38 2.03 1.72

Cost of Production 31.00 34.40 37.88 37.93 38.04

Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38

Interest on Term Loan 1.82 1.59 1.13 0.68 0.23

Interest on Working Capital 0.32 0.32 0.32 0.32 0.32

Total 36.74 40.09 43.30 43.10 42.97

Profit Before Tax -0.74 1.91 4.70 4.90 5.03

Provision for tax 0.00 0.64 1.58 1.65 1.69

Profit After Tax -0.74 1.27 3.12 3.25 3.34

Add: Depreciation 3.30 2.81 2.38 2.03 1.72

Cash Accruals 2.56 4.08 5.50 5.28 5.06

Repayment of Term loan 0.00 4.13 4.13 4.13 4.11

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 0.72 25% 0.18 0.54

Consumables 2.00 0.06 25% 0.02 0.04

Finished goods 0.50 1.29 25% 0.32 0.97

Debtors 0.50 1.50 10% 0.15 1.35

Expenses 1.00 0.30 100% 0.30 0.00

3.87 0.97 2.90

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8

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 3.12 6%

Sales

=

48.00

Profit before Interest and Tax 6.15

Total Investment

=

29.37

21%

Profit after Tax 3.12

Promoters Capital

=

9.97

31%

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs.lakhs]

Wages & Salaries 6.51

Repairs & Maintenance 0.73

Depreciation 2.38

Admin. & General expenses 3.97

Interest on TL 1.13

14.72

Profit Before Tax (P) 4.70

FC x 100 14.72 80 BEL =

FC +P

=

19.42

x 100

X 100

61% of installed capacity

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RECYCLING OF PET (PET PLAKES)

INTRODUCTION

The recycling plastic is an essential requirement in modern society in view of the

environmental problems faced by the extensive use of plastics bags, cans, and

bottles. The usage of PET bottles have been increasing all over these years and

the demand and the consumption is growing at a faster rate due to globalisation,

liberalisation etc. The disposal of healthy recycling of plastic is the basic

requirement. The used bottles of plastic are re-cycled by crushing, grinding and

again by making them into flakes.

MARKET POTENTIAL

The global PET consumption in packaging was around 4.6 million tonnes in 2000

and is estimated to reach 8.5 million tonnes in 2005. The PET for packaging has

been growing at the rate of 12% to !5 % per annum, PET bottles accounted for

50% of the global soft drinks packaging market in 2000. USA is the largest PET

consumer in the world with current demand at about 2 million tonnes.

The PET market in India is growing. The India’s consumption of the PET bottles

per annum is estimated at about 100000 tonnes The main segments where PET

bottles are used are

- Mineral water

- Carbonated Soft Drinks

- Edible Oil

- Liquor

- Household items

- Other (for Packaging juices, food stuffs etc.)

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The quantum jump in the volume of used stretch blow moulded PET bottles in

the country has raised an alarm even in the plastic industry. After owning up

responsibility for generating huge volumes of such non-biodegradable waste

materials, the industry has now initiated moves to evolve cheap technology for

recycling the litter of such PET bottles.

Very less effort has been made to create awareness and a systematic network

for disposal and collection of used PET bottles.

Similar is the case with many other plastics being used & disposed off. This un

organized disposal of plastics has created wrong perception to environment

protection / safe guarding agencies about Plastics which are environment

resource conserving materials.

PET appears to be available in free form as used bottles on roads, but collection

& converting to a usable from is a major constraint.

The PET processing industries sell their process waste to collection agents

bypassing waste recycling companies leading to price escalation. This in turn

leads to in-sufficient availability of quality materials to the reprocessing industry.

By using PET flakes quality , almost equivalent to the virgin material, is available

at 60% of original cost.

Recycled PET is used, for non food grade applications like Bottles, Jars, Sheets,

Fiber, strap, zip fasteners etc.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Reprocessing

Pet bottles

3 MT 8 24 MTs 7200 MTs

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PLANT AND MACHNERY

Name Qty Value Rs.

In Lakhs

Bale Opening

1

Bottle washing 1

Bottle picking conveyor 1

Bottle conveyor 2

Crusher A 2

Screw conveyor A 2

Crusher B 2

Screw conveyor B 2

Float washing 1

Screw conveyor 1

Grinding washing 1

Screw conveyor 2

Chemical washing 2

Screw conveyor 2

Grinding washing 1

Filling mill 1

Screw conveyor 1

Bi-Screw washing 1

Bi-Screw washing 1

Spin-drier 1

Screw conveyor 1

Control panel 1

Heating dryer 1

Knives set 8

Total

50.00

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MANUFACTURING PROCESS

The reprocessing of PET Bottles involves the following sequential operations

The plant is designed for the production of clean and dry flakes, starting from

PET bottles selected according to colour. The flakes can be used for further

processing (fibers) or the production of re-granulate (Extruder + Crystalliser), or

to recover the basic chemical components Terephtalic Acid and Ethylene

Glycole.

The material , old PET bottles arrives in bales and is put into a loading conveyor.

The binding wires have to be removed and the bales loosen up due to internal

elastic tension. For the grinding and washing plant no problem arises if some

bottles are still sticking together.

The grinding and washing plant is loaded by means of a mounting conveyor. The

plant grinds the material to flakes and cleaning is done due to material friction of

the flakes and the injected water. Paper labels are reduced to fibres and are

removed with other contaminants and with washing water. The bottles are

reduced to flakes form by the grinders.

Once collected, containers are forwarded to recycling locations where they are

run through grinders that reduce them to flake form. The flake then proceeds

through a separation and cleaning process that removes all foreign particles such

as paper, metal, and other plastic materials.

Having been cleaned according to market specifications, the recovered PET is

sold to manufacturers who convert them in to a variety of useful products such as

carpet fiber, strapping, moulding compounds, and non-food containers.

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RAW MATERIALS

For MTS 7200

Qty-MTs Rate/MT Value Rs. Lakhs

Recycled PET Flakes 7344 20000 1468.80

0 0 0.00

TOTAL 1468.80

Packing materials 7200 100.00 7.20

LOCATION LAND AND BULIDING

Built up area-Sq.ft 10000

Rent p.m.-Rs per .5 per sq.ft 50000

Advance-10 months .Rs 500000

UTILITIES

Power & Fuel

Three phase- KW 300.00

Power charges Rs. lakhs p.a 34.20

For process-Litres per day 100000

Out of which re-cycled water-lt/day 80000

For human consumption-litres/day 200

Manpower

Monthly wages TotalManager 1 10000 10000Supervisor 1 8000 8000Skilled 3 5000 15000Unskilled 3 3000 9000Accounts Assistant 1 4000 4000Sales Executive 1 5000 5000Security 2 2000 4000sub total 55000Add benefits 20% 11000Total per month 66000TOTAL PER ANNUM-Rs. lakhs 7.92

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Schedule of implementation

After the financial arrangements are made the project can be implemented in 3

months times.

COST OF PROJECT AND MEANS OF FINANCE

ASSUMPTION

Installed capacity 7200 MTs per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs. Rs. 25000 per MT

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.34.20lakh per annum at 100%

Wages and salaries Rs. 7.92 lakhs with increase 5% every year.

Repairs and Maintenance Rs.1.20 lakhs per annum with 10% annual

increase.

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.300000 per month with 5% annual increase

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

List of Machinery Suppliers: 1. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600

018.

2. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka,

Andhari East, Mumbai – 500 072.

3. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

4. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005.

5. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

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Ahmedabad – 382445

6. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032. List of Raw Material Suppliers: 1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641006,

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079,

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastIcs, 57/2, Thirupalli Street – 79,

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

5 Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020 FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 5.00 Plant & Machinery 50.00 Other Misc. assets 2.00 Pre-Operative expenses 5.00 Margin for WC 24.00 86.00 2. MEANS OF FINANCE Capital 48.50 Term Loan 37.50 86.00 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-MTs 7200 7200 7200 7200 7200

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Utilisation 60% 70% 80% 80% 80%Production/Sales-MTs 4320 5040 5760 5760 5760 Selling Price per MT-Rs. 0.25 lakh Sales Value (Rs.lakhs) 1080.00 1260.00 1440.00 1440.00 1440.00 Raw Materials 881.28 1028.16 1175.04 1175.04 1175.04Packing Materials 4.32 5.04 5.76 5.76 5.76Power 20.52 23.94 27.36 27.36 27.36Wages & Salaries 7.92 8.32 8.74 9.18 9.64Repairs & Maintenance 1.20 1.32 1.45 1.60 1.76Depreciation 7.50 6.38 5.42 4.61 3.92Cost of Production 922.74 1073.16 1223.77 1223.55 1223.48Selling, Admin, & General exp 36.00 37.80 39.69 41.67 43.75Interest on Term Loan 4.13 3.61 2.58 1.55 0.51Interest on Working Capital 10.72 10.72 10.72 10.72 10.72Total 973.59 1125.29 1276.76 1277.49 1278.46 Profit Before Tax 106.41 134.72 163.24 162.51 161.54Provision for tax 35.82 45.35 54.95 54.70 54.38Profit After Tax 70.59 89.37 108.29 107.81 107.16Add: Depreciation 7.50 6.38 5.42 4.61 3.92Cash Accruals 78.09 95.74 113.71 112.42 111.08 Repayment of Term loan 0.00 9.38 9.38 9.38 9.36 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 36.72 25% 9.18 27.54 Consumables 2.00 0.72 25% 0.18 0.54 Finished goods 0.50 38.45 25% 9.61 28.84 Debtors 0.50 45.00 10% 4.50 40.50 Expenses 1.00 0.53 100% 0.53 0.00 121.42 24.00 97.42

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6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 108.29 Sales

= 1440.00

8%

Profit before Interest and Tax 176.54 Total Investment

= 183.42

96%

Profit after Tax 108.29 Promoters Capital

= 48.50

223%

7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 8.74 Repairs & Maintenance 1.45 Depreciation 5.42 Admin. & General expenses 39.69 Interest on TL 2.58 57.88 Profit Before Tax (P) 163.24

FC x 100 57.88 80 BEL = FC +P

=221.12

x 100

x 100

21% of installed capacity

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1

REPROCESSING OF PLASTICS

INTRODUCTION

The demand for the plastic raw material emanates fro the necessity of disposing the

used plastics as well as the cheaper rates of reprocessed materials which can be reused

for manufacturing several plastic articles. Reprocessed raw materials can be used either

wholly or mixed with virgin materials in varying proportions. First grade reprocessed

material can be used up to say 50% with the virgin material in film plants for packaging.

In agro plastics, reprocessed materials can be used up to say 70%, 100% RP can be

used for the production of box strapping. Consumer items such as buckets, mugs, soap

boxes, plates, tumblers and cups, toys, bottle caps, junction boxes etc., are some of the

products being made with even 100% reprocessed plastic raw materials.

MARKET

India will rise to become the world's third largest plastics producer by 2010. Already

Reliance Industries is a major player here. And Asian markets has the highest growth

potential," said Mr. Helmar Franz, member K 2001 Exhibitor Council.

He said the demand for plastic materials is expected to grow by 5.3 per cent over next

decade. This according to him would put the total global demand for plastic materials at

over 250 million tonne a year by 2010.

"By then the total consumption in South East Asian markets will have far outstripped that

of North American and Western Europe," he added.

When one compares the per capita plastics consumption of Asian countries, the huge

potential to be tapped is evident. While some 100-170 kg of plastics and rubber are used

per capita in the major European economies, in Japan and the US this number is just 90

kg, in Singapore, Malaysia, Australia and New Zealand accounting for 70-80 kg.

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2

The consumption is much lower in Thailand, China and India at 30, 10, and 13 kg

respectively. This potential is what is enticing investors to announce fresh commitments

in South East Asian region. As major user industries like automobiles, consumer

durables and electronics now becoming really global, it is but natural for them to look for

suppliers to supply locally.

The Indian Plastic Industry Has taken great strides in its quest for success. The last few

decades have seen it rise to the position of a leading force in the country with a sizable

base. The industry itself is growing at a fast pace and the per capita consumption of

plastics in the country has increased manifold as compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities. It has

helped substitute and save scarce natural resources. It is an inseparable part of our

daily life.

Constant development in polymer technology, processing machinery, know how and

cost effective production is fast replacing plastics in every segment from its conventional

materials

• Polymer demand in india to touch 7.3 million tons by 2006 - 2007 and 12.4 million

tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and china by

2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

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3

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

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4

* Source : Task Force on Petrochemical / Industry Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go up to

7.7 kg by the year 2007. While it is true that our consumption is below the world average

of 17 kg, per capita figures should be viewed in the context of our large population;

sometimes per capita figures are useful only for trend analysis and not in absolute

terms.

INSTALLED CAPACITY

Product Installed

capacity

per hour

No of working

hours per day

Capacity per

day

Capacity per

annum

300 days per

annum

Reprocessing

of plastics

60 kgs 8 480 kgs 144 MT

PLANT AND MACHINERY

Sl.no. Description Qty Amount

1 65mm Extruder with one set of reprocessing die and

Pelletiser with accessories

1 250000

2 Heavy duty plastic scrap grinder (18") 1 100000

3 Plastic colour mixer (22/24") 1 90000

4 Miscellaneous tools & equipments 1 60000

Total 500000

MANAFACTURING PROCESS

In the single process, the plastic waste/scraps are first segregated according to grade

and quality wise; then cleaned and washed, dried up and then ground with the aid of

scrap grinder. The grouped scrap is mixed with colour and then fed into extruder where

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5

it gets melted and comes out from the die as strands which is then dipped into water

bath. The strands are fed into a cutter unit where it gets cut and collected as granules.

In double process, the cleaned waste is fed into extruder where it gets melted and

collected as lumps. The lumps are ground and collected as scraps. The ground scraps

are fed into extruder and collected as strands which are chopped as granules.

The advantage of double process over single process is that the granules reportedly

have high bulk density which are preferred by film manufacturers. However, this double

process involves more labour and power.

RAW MATERIALS

For MTS 144

Qty-MTs Rate/MT Value Rs.Lakhs

Plastic scrap 151.20 12000 18.14

Colourants 2.00 80000 1.60

TOTAL 19.74

Packing materials 144 1000 1.44

LOCATION LAND AND BUILDING

Built up area-Sq.ft 1000

Rent p.m.-Rs per .5 per sq.ft 5000

Advance-10 months.Rs 50000

UTILITIES

Power- Hp

Three phase- KW 36.00

Power charges Rs.lakhs p.a 4.10

Water-For process-Litres per day 2000

For human consumption-litres/day 200

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6

MANPOWER

Nos Monthly wages Total

Manager 1 0 Self

Skilled 2 5000 10000

Unskilled 2 3000 6000

Accounts Assistant 1 4000 4000

Security 1 2000 2000

sub total 20000

Add benefits 20% 4000

Total per month 24000

TOTAL PER ANNUM-Rs. lakhs 2.88

SCHEDULE OF IMPLEMENTATION

The project can be implemented after making the financial arrangements and the

premises.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 144 MT of reprocessed plastic per annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.28.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.4.10 lakhs per annum at 100%

Wages and salaries Rs. 2.88 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum

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7

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.20000 per month

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

MACHINERY SUPPLIERS:

1. M/s Kolsite Machine Fabrik Ltd., Veera Desai Raod, P. O. Box No. 7368,

Andheri (W), Bombay-400 058.

2. M/s Jolite Industries, 5 Central Avenue Road, Kodungaiyur, Chennai-600 051.

3. M/s Venkateswara Engineering Industries, 42 Wood Wharf, III Lane,

Walltax Road, Chennai-600 079.

4. M/s Boolani Engineering Corporation, Prabhadevi Industrial Estate,

402, Veer Savarkar Road, Bombay-400 025.

5. M/s Brimco Plastic Machinery Corporation, Plot No. 55, Govt. Industrial Estate,

Kandivili, Bombay-400 097.

6. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018.

7. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari

East, Mumbai – 500 072.

8. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415,

9. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad – 121005.

10. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva,

Ahmedabad – 382445

11. HMT International Ltd, 59 HMT Bhavan, Bellary Road, Bangalore – 560 032.

ADDRESSES OF RAW MATERIAL AND OTHER CONSUMABLE SUPPLIERS

Plastic Scrap

Local retail/wholesale plastic scrap dealers.

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8

FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 0.50 Plant & Machinery 5.00 Other Misc. assets 0.50 Pre-Operative expenses 1.50 Margin for WC 0.76 8.26 2. MEANS OF FINANCE Capital 4.51 Term Loan 3.75 8.26 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 Installed Capacity-MTs 144 144 144 Utilisation 60% 70% 80% Production/Sales-MTs 86 101 115 Selling Price per MT-Rs. 0.28lakhs Sales Value (Rs.lakhs) 24.08 28.28 32.20 Raw Materials 11.85 13.82 15.80 Packing Materials 0.86 1.01 1.15 Power 2.46 2.87 3.28 Wages & Salaries 2.88 3.02 3.17 Repairs & Maintenance 0.60 0.66 0.73 Depreciation 0.75 0.64 0.54

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9

Cost of Production 19.40 22.02 24.67 Selling, Admin, & General exp 2.40 2.52 2.65 Interest on Term Loan 0.41 0.36 0.26 Interest on Working Capital 0.22 0.22 0.22 Total 22.43 25.12 27.80 Profit Before Tax 1.65 3.16 4.40 Provision for tax 0.56 1.06 1.48 Profit After Tax 1.09 2.10 2.92 Add: Depreciation 0.75 0.64 0.54 Cash Accruals 1.84 2.74 3.46 Repayment of Term loan 0.00 0.94 0.94 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 0.49 25% 0.12 0.37Consumables 2.00 0.14 25% 0.04 0.10Finished goods 0.50 0.81 25% 0.20 0.61Debtors 0.50 1.00 10% 0.10 0.90Expenses 1.00 0.30 100% 0.30 0.00 2.74 0.76 1.98 5. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 2.92 Sales

= 32.20

9%

Profit before Interest and Tax 4.88 Total Investment

= 10.24

48%

Profit after Tax 2.92 Promoters Capital

= 4.51

65%

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10

6. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 3.17 Repairs & Maintenance 0.73 Depreciation 0.54 Admin. & General expenses 2.65 Interest on TL 0.26 7.35 Profit Before Tax (P) 4.40

FC x 100 7.35 80 BEL = FC +P

= 11.75

x 100

x 100

50% of installed capacity

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RIGID PVC PIPES

INTRODUCTION

Rigid PVC pipes are un-plasticised material which are inert in nature and light in

weight. The characteristics of these pipes are low cost, ease of handling, ease of

installation, non-corrosiveness, good tensile strength, ability to withstand high

fluid pressure, long life etc., They have become excellent substitute for the

conventional G.I. pipes for water distribution and conventional cement pipes for

drainage application. They are in great demand for various drainage application

as well because these pipes are not brittle like cement pipes and are easily and

quickly installable. These pipes are also used in electrical jobs due to the

excellent electrical and heat insulation properties.

All the electricity boards have accepted PVC conduits. There are larger diameter

pipes which have wide acceptance for potable water supply as they can

withstand high fluid pressures and are highly durable. Their use in tube wells is a

recent innovation. They also offer very good resistance to most of the chemicals.

In this report, the manufacture of rigid PVC pipes with a maximum dia. upto 110

mm (outer dia), mainly used as domestic water supply lines and rain water drain

lines, has been considered.

MARKET

The Indian Plastic Industry has taken great strides in its quest for success. The

last few decades have seen it rise to the position of a leading force in the country

with a sizable base. The industry itself is growing at a fast pace and the per

capita consumption of plastics in the country has increased manifold as

compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities.

It has helped substitute and save scarce natural resources. It is an inseparable

part of our daily life.

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Constant development in polymer technology, processing machinery, know how

and cost effective production is fast replacing plastics in every segment from its

conventional materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4

million tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and

china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

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Demand estimates for Engineering Thermoplastics (1000 Tones)

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermosets 116 155

Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry

Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go

up to 7.7 kg by the year 2007. While it is true that our consumption is below the

world average of 17 kg, per capita figures should be viewed in the context of our

large population; sometimes per capita figures are useful only for trend analysis

and not in absolute terms.

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INSTALLED CAPACITY

Product Installed

capacity per

hour

No of working

hours per day

Capacity

per day

Capacity per

annum

300 days per

annum

Rigid pvc

pipes

37.5 kgs

(Maximum

dia-110 mm

outer dia)

16 600 180 MT

PLANT AND MACHINERY

Sl.No Description Qty Rs. in lakh

1. High speed mixer, honschel type capacity 50 kg. per

batch, fitted with complete controls with cooling arrangements

1 1.25

2. 85 MM PVC rigid pipe extrusion plant consisting of twin screw

extruder, vacuum sizing unit, cooling tank, haul off unit and cutting

device complete with controls and motor etc, with Dies for 50mm,

63mm, 75mm, 90mm Dia Pipes

1 8.00

3. Scrap Grinder, heavy duty, fitted with electric motor 5 HP 1 0.60

4. Overhead water tank and re cycling pump unit 1 0.30

5. Weighing balance (Avery) type industrial model

100 gms. to 5 kgs.

1 Kg. to 100 Kgs

0.15

0.25

6. Pipe storage tracks, small hand tools and greasing & oiling

equipments etc.

0.25

7. Testing & Inspection Equipments, Laboratory 1.20

Total 12.00

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MANUFACTURING PROCESS

TYPICAL PVCCOMPOUNDING FORMULATION FOR RIGID PVC PIPE :

(Parts by weight)

PVC Resin 100

Stabilizer (non-toxic) 5

Primary Plasticizer 1.5

Secondary Plasticizer 5

Internal Lubricant 3

External Lubricant 4

Epoxy plasticizer 1.5

Pigment base 3

Pigment As required

Rigid or unplasticized PVC pipes are made from polyvinyl chloride (PVC) which

in resin form is hard and rigid material. This rigidity can be controlled by

controlling the percentage of plasticizer at the time of compounding. The

production of rigid PVC pipes consists of plasticizing and homogenising PVC

compound and mattering through an extruder. This hot molten PVC compound

is extruded by the extruder through a circular slit. This circular slit governs the

size of the pipe to be extruded. Different dies are used for manufacturing

different sizes of pipes.

The pipes thus extruded through the die is then passed through a vacuum sizing

tank wherein the dimensions of the pipe can be accurately set. This also helps in

the surface finish of the pipe. Vacuum sizing which is much more sophisticated

than other types of forming operations reduce the percentage of wastage

considerably.

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As the pipe being extruded is rigid in form they cannot be wound into coils so an

in-line motorised cutting device should be provided for cutting the pipes into

required sizes. Since the performance requirement for the rigid pipes are quite

critical the unit should preferably be equipped with process control laboratory for

the preliminary testing of raw materials for ascertaining the consistency in their

quality. The unit may also have arrangement for quality testing of pipes.

RAW MATERIALS

The raw materials required for the annual production of 180MTs of PVC pipes

are the following.

For MTS 180

Qty-MTs Rate/MT Value Rs. Lakhs

PVC-Resin 162.00 48000 77.76

Plasticisers 9.00 65000 5.85

Stabilisers 3.60 64000 2.30

ESBO 3.84 50000 1.92

Lead stearate 3.24 80000 2.59

Calcium stearate 1.62 50000 0.81

Calcium carbonate 10.80 12000 1.30

Colourants 0.84 110000 0.92

TOTAL 93.46

Packing materials For 180 MTs 1000/MT 1.80

LOCATION LAND AND BUILDING

Built up area-Sq.ft 3000

Rent p.m.-Rs per .5 per sq.ft 15000

Advance-10 months .Rs 150000

UTILITIES

Three phase- KW 60.00

Power charges Rs. lakhs p.a 13.68

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Water-For process-Litres per day 2000

For human consumption-litres/day 200

MANPOWER

Nos Monthly wages Total

Manager 1 8000 8000

Supervisor 1 6000 6000

Skilled 8 5000 40000

Unskilled 8 3000 24000

Accounts Assistant 1 4000 4000

Sales Executive 1 5000 5000

Security 2 2000 4000

sub total 91000

Add benefits 20% 18200

Total per month 109200

TOTAL PER ANNUM-Rs. lakhs 13.10

SCHEDULE OF IMPLEMENTATION

After the financial arrangements are made the project can be implemented in 3

months times.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 180 MT of Rigid PVC Pipes of various sizes per

annum

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price Rs.80.00 per kg

Raw materials As per the details given above

Packing materials As per details given above

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Power Rs.13.68 lakhs per annum at 100%

Wages and salaries Rs. 13.10 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% annual

increase.

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% annual increase.

Interest on Term loan 11% per annum

Interest on working capital 11 % per annum

Income tax 33.66 % on profits

ASSESSMENT OF WORKING CAPITAL

Months Values % Margin Bank

Consumptions Amount Finance

Raw Materials 0.50 2.34 25% 0.59 1.75

Consumables 2.00 0.18 25% 0.05 0.13

Finished goods 0.50 3.27 25% 0.82 2.45

Debtors 0.50 3.60 10% 0.36 3.24

Expenses 1.00 0.30 100% 0.30 0.00

9.69 2.12 7.57

MACHINERY SUPPLIERS

A. EXTRUDERS, SCRAP GRINDERS & MIXERS

1. M/s. BOOLANI ENGINEERING CORPORATION, Shabir Mansion

137, Linghi Chetty Street, Chennai - 600 001

2. M/s. BRIMCO PLASTIC MACHINERY PVT.LTD, 14, Sunkurama Chetty Street

(II Floor), Chennai - 600 001.

3. M/s. DGP WINDSOR LTD, 21, Century Plaza, 580, Anna Salai, Chennai - 600 018

4. M/s. KOLSITE MACHINE FABRIK LTD, C-1, Gems Court,14, Khader Nawaz Khan

Road

Chennai - 600 006

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5. M/s. JOLITE ENGINEERING WORKS, 343, Walltax Road, Chennai - 600 079

6. M/s. SIVA ENGINEERING WORKS, 12-A, Shanmugarajan Street, Vepery

Chennai - 600 007

7. M/s. POLYMER MACHINERY WORKS, 40, Avaniapuram Main Road, Madurai- 625

012

8. M/s. SANT ENGINEERING INDUSTRIES, 580, Main Faiz Road, Karol Bagh New Delhi- 110 005 9. M/s. REMICA PLASTIC MACHINERY MFRS, Opp. Rustom Mills, Dhudeshwar Road Ahmedabad- 380 001 10. M/s. NEOPLASTIC MACHINERY, New Mithakali Under Bridge, Ahmedabad- 380 009 11. M/s. NEPTUNE PLASTIC & METAL INDUSTRIES, Jain Chambers, 18, R.N. Mukherjee Road, Calcutta- 700 001 12. D. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai – 600 018. 13. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari East, Mumbai – 500 072. 14. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad–382415, 15. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad–121005. 16. Prasad Groups & Companies, Plot No. 14 – 16 GIDC Industrial Estate, Phase 1 Valva, Ahmedabad – 382445 17. HMT International Ltd, 59 HMT Bhavan, Bellary Raod, Bangalore – 560 032. ADDRESSES OF RAW MATERIALS & OTHER CONSUMABLES SUPPLIERS PVC RESIN 1. M/s. Chemicals and Plastics India Ltd, PVC Division, 8, Cathedral Road, Chennai - 600 086. 2. M/s. Indian Petrochemicals Corporation, Chennai Regional Office, 33, D'Silva Road Mylapore, Chennai - 600 004. 3. M/s. Reliance Industries Ltd., Petrochemicals Division, JVL Plaza, 501, Anna Salai Chennai - 600 018. 4. M/s. National Organic Chemical Industries Ltd., 8, Haddows Road, Chennai -600 006. 5. M/s. Ram-Nath & Co., 38, Cathedral Road, Chennai - 600 086. 6. M/s. Jai Enterprises, 22, Rutland Gate IV Street, Chennai - 600 008. 7. M/s. Sree Polymers, 218, Nehru Nagar, Chennai -600 096. LUBRICANTS, PROCESSING AIDS, STABILIZERS, PIGMENTS ETC. 1. M/s. Ram-Nath & Co., 38, Cathedral Road, Chennai - 600 086. 2. M/s. Asco Plastics, 17-B, Muthusa Maistry Street, Seven wells, Chennai - 600 001. 3. M/s. Rajshree Petrochemicals, 156, Mint Street, Kanchanplaza, First Floor

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Chennai - 600 079. 4. M/s. Sri Sakthi Industries, 144, Nehru Nagar, Chennai - 600 041.

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FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 1.50 Plant & Machinery 12.00 Other Misc. assets 0.50 Pre-Operative expenses 1.50 Margin for WC 2.14 17.64 2. MEANS OF FINANCE Capital 8.64 Term Loan 9.00 17.64 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity-MTs 180 180 180 180 180Utilisation 60% 70% 80% 80% 80%Production/Sales-MTs 108 126 144 144 144 Selling Price per MT-Rs. 0.80 lakhs Sales Value (Rs.lakhs) 86.40 100.80 115.20 115.20 115.20 Raw Materials 56.07 65.42 74.76 74.76 74.76Packing Materials 1.08 1.26 1.44 1.44 1.44Power 8.21 9.58 10.94 10.94 10.94Wages & Salaries 13.10 13.76 14.45 15.17 15.93Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88Depreciation 1.80 1.53 1.30 1.11 0.94Cost of Production 80.86 92.21 103.62 104.22 104.89

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Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38Interest on Term Loan 0.99 0.87 0.62 0.37 0.12Interest on Working Capital 0.84 0.84 0.84 0.84 0.84Total 86.29 97.70 109.05 109.60 110.23 Profit Before Tax 0.11 3.10 6.15 5.60 4.97Provision for tax 0.04 1.04 2.07 1.89 1.67Profit After Tax 0.07 2.06 4.08 3.71 3.30Add: Depreciation 1.80 1.53 1.30 1.11 0.94Cash Accruals 1.87 3.59 5.38 4.82 4.24 Repayment of Term loan 0.00 2.25 2.25 2.25 2.25 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 2.34 25% 0.59 1.75 Consumables 2.00 0.18 25% 0.05 0.13 Finished goods 0.50 3.37 25% 0.84 2.53 Debtors 0.50 3.60 10% 0.36 3.24 Expenses 1.00 0.30 100% 0.30 0.00 9.79 2.14 7.65 6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 4.08 Sales

= 115.20

4%

Profit before Interest and Tax 7.61 Total Investment

= 25.29

30%

Profit after Tax 4.08 Promoters Capital

= 8.64

47%

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7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 14.45 Repairs & Maintenance 0.73 Depreciation 1.30 Admin. & General expenses 3.97 Interest on TL 0.62 21.07 Profit Before Tax (P) 6.15

FC x 100 21.07 80 BEL = FC +P

=27.22

x 100

x 100

62% of installed capacity

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4. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 5.88

Sales

=

115.20

5%

Profit before Interest and Tax 10.31

Total Investment

=

25.19

41%

Profit after Tax 5.88

Promoters Capital

=

8.62

68%

5. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs.lakhs]

Wages & Salaries 11.75

Repairs & Maintenance 0.73

Depreciation 1.30

Admin. & General expenses 3.97

Interest on TL 0.62

18.37

Profit Before Tax (P) 8.86

FC x 100 18.37 80 BEL =

FC +P

=

27.23

x

100

x 100

54% of installed capacity

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WATER STORAGE TANKS

(ROTO MOULDED TANKS)

INTRODUCTION

The water shortage in India is phenomenal. The tanks are mainly used for storing

water. The tanks manufactured made out of Linear Low Density Polyethylene

(LLDPE) are light in weight and easy to fix anywhere. These tanks require no

painting. The water can be stored easily odourless. They are very convenient in

schools, hotels, hospital and residences.

MARKET

The Indian Plastic Industry has taken great strides in its quest for success. The

last few decades have seen it rise to the position of a leading force in the country

with a sizable base. The industry itself is growing at a fast pace and the per

capita consumption of plastics in the country has increased manifold as

compared to the earlier decade.

Plastic has undoubtedly gained notable importance in every sphere of activities.

It has helped substitute and save scarce natural resources. It is an inseparable

part of our daily life.

Constant development in polymer technology, processing machinery, know how

and cost effective production is fast replacing plastics in every segment from its

conventional materials

• Polymer demand in India to touch 7.3 million tons by 2006 - 2007 and 12.4

million tons by 2010 - 2011.

• India is expected to be the 3rd largest consumer of plastics after US and

china by 2010.

Growth rate between 12% - 15%. Consistently outperforming GDP.

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Major Raw Material Producers 15

Processing Units 22,000 Nos

Turnover Rs. 25,000 crores

Capital Asset Rs. 47,000 crores

Raw Material produced approx. 4.2 million tones

Raw Material consumed approx. 3.7 million tones

Employment Direct / Indirect 2.5 million

Export value approx. USD 1104 million

Revenue to Government approx. Rs. 6000 crores

Demand estimates for major Polymers - INDIA (1000 Tones)

2003 2004

LDPE 281

Linear PE / LLDPE / HDPE 1666 3000

PP 1737 2569

PVC 986 1614

PS 246 402

PET Bottles 45 100

PET Film 55 100

Demand estimates for Engineering Thermoplastics

ABS 40 65

Polyamide ( 6 & 66) 20 32

PET / PBT Moulding

Material 2 3

Polycarbonate 20 32

Other Thermoplastics 26 40

Thermo sets 116 155

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Demand estimates for Machinery

Injection Moulding 32350 Nos

Blow Moulding 5050 Nos

Extrusion 16700 Nos

* Source : Task Force on Petrochemical / Industry

Estimate

The per capita plastics consumption, which is currently at 3 kg, is projected to go

up to 7.7 kg by the year 2007. While it is true that our consumption is below the

world average of 17 kg, per capita figures should be viewed in the context of our

large population; sometimes per capita figures are useful only for trend analysis

and not in absolute terms.

INSTALLED CAPACITY

Product No of

working

hours

per day

Capacity

per day

Capacity per

annum

300 days per

annum

Roto-moulded tanks

capacity

500 litres

750 litres

1000 litres

5000 litres

8

8

8

8

10

10

5

5

3000

3000

1500

1500

PLANT AND MACHINERY

S.noItem Nos Value Rs.

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lakhs

1 Biaxial Rotation Moulding plant 3 arm 1000 litre capcity with motor ,

reduction gear,for each arm AC drive

1 16.20

2 Rock – roll moulding machine with motor reduction gear for 6 nos

rolling hydraulic pump up to 10000 litres

1 8.10

3 Chain pulley with stands 1 0.35

4 Pulverising machines with 20 Hp motor 1 7.00

5 Extruder machine 1000 mm with reduction gear pyrometric panel

board.

1 5.00

6 18”Heavy duty grinding machine with 15 HP motor 1 0.35

7 Weighing machine 1 1.20

8 Cutter machine 1 0.50

9 Testing equipments 0.30

10 Electricals 4.00

11 Moulds 1 5.00

48.00

MANAFACTURING PROCESS

The plasticised and homogenised thermoplastic material is injected into a locked

(clamped) mould with sufficient injection speed and pressure. After the melt is

cooled in the mould, it is opened to remove the moulded articles. This is a cyclic

process. Automatic injection moulding machine is the basic machinery involved

in this project.

RAW MATERIALS

500 Litres 750 litres 1000 litres 5000 litres Qty-MTs Rate/MT Value

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Rs lakhs LLDPE 448.80 64000 287.23 Mater batch black 2.40 50000 1.20 TOTAL 288.43 Packing materials 9000.00 5.00 0.45

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2500 Rent p.m.-Rs per .5 per sq.ft 12500 Advance-10 months.Rs 125000

UTILITIES

Three phase- KW 110.00 Power charges Rs.lakhs p.a 12.54 Fuel-LPG 63.00 Power & fuel 75.54 For process-Litres per day 0 For human consumption-litres/day

200

MANPOWER

Monthly Total wages Supervisor 1 8000 8000 Skilled 4 5000 20000 Unskilled 6 3000 18000 Accounts Assistant 1 4000 4000 Sales Executive 1 5000 5000 Security 2 2000 4000 sub total 59000 Add benefits 20% 11800 Total per month 70800 TOTAL PER ANNUM-Rs. lakhs 8.50

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SCHEDULE OF IMPLEMENTATION

If the financing arrangements are finalised the project can be implemented in

three months time.

COST OF PRODUCTION AND PROFITABILTY

Assumptions

Installed capacity 500 litres - 3000 nos

750 litres - 3000 nos

1000 litres - 1500 nos

5000 litres – 1500 nos

Capacity utilisation Year-1 -60%

Year -2 -70%

Year-3 onwards- 80%

Selling price 500 litres - Rs.2500 per piece

750 litres - Rs.2800 per piece

1000 litres – Rs. 3400 per piece

5000 litres – Rs.13400 per piece

Raw materials As per the details given above

Packing materials As per details given above

Power & fuel Rs.75.54 lakhs per annum at 100%

Wages and salaries Rs. 8.50 lakhs with increase 5% every year.

Repairs and Maintenance Rs.0.60 lakh per annum with 10% increase per

annum

Depreciation Written down value method -15 % on machinery

Selling general and

administrative expenses

Rs.30000 per month with 5% increase per

annum

Interest on Term loan 11% per annum

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Interest on working capital 11 % per annum

Income tax 33.66 % on profits

LIST OF MACHINERY SUPPLIERS 1. National Plastics,84, GIDC, Odhav, Ahmedabad-342 415

2. Jai industrial works,22-22A industrial state,22 Godam,Jaipiur

3. Super India,B-45 Lawrence Road,new delhi 110 035

4. Batliboi& co, Fort, Mumbi-400 023

5. N.A.Corporation, 3725, GIDC,Phase IV Vatva, Ahmedabad-372 445

6. Flexopan Machine Pvt ltd,71 Nehru Palce,New Delhi 11 0019

LIST OF RAW MATERIAL SUPPLIERS

1. Lucky Plastics, 421-c, Sngr Road Gpathy CBE-641006,

2. Maruthi Plastic, Old – 3 Thirupali ST Sowcarpet- 600 079,

3. Reliance Industries, 501 JVL Plaza Anna Salai, Teynampet – 600 018.

4. Shri Swastic PlastIcs, 57/2, Thirupalli Street – 79,

5. Abs Plastics Ltd, 51 Gidc Industrial Estate, Nadesari – 391340.

5 Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020

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FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 1.25 Plant & Machinery 48.00 Other Misc. assets 0.50 Pre-Operative expenses 2.00 Margin for WC 5.59 57.34 2. MEANS OF FINANCE Capital 21.34 Term Loan 36.00 57.34 3. COST OF PRODUCTION & PROFITABILITY STATEMENT [Rs.lakhs] Years 1 2 3 4 5 Installed Capacity 500 Litres 3000 3000 3000 3000 3000750 litres 3000 3000 3000 3000 30001000 litres 1500 1500 1500 1500 15005000 litres 1500 1500 1500 1500 1500Utilisation 60% 70% 80% 80% 80%Production/Sales 500 Litres 1800 2100 2400 2400 2400750 litres 1800 2100 2400 2400 24001000 litres 900 1050 1200 1200 12005000 litres 900 1050 1200 1200 1200 Selling Price-Rs. 500 Litres 2500.00 2500.00 2500.00 2500.00 2500.00

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750 litres 2800.00 2800.00 2800.00 2800.00 2800.001000 litres 3400.00 3400.00 3400.00 3400.00 3400.005000 litres 13400.00 13400.00 13400.00 13400.00 13400.00 Sales Value (Rs.lakhs) 246.60 287.70 328.80 328.80 328.80 Raw Materials 173.06 201.90 230.75 230.75 230.75Packing Materials 0.27 0.32 0.36 0.36 0.36Power & fuel 45.32 52.88 60.43 60.43 60.43Wages & Salaries 8.50 8.92 9.37 9.84 10.33Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88Depreciation 7.20 6.12 5.20 4.42 3.76Cost of Production 234.95 270.80 306.84 306.60 306.51Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38Interest on Term Loan 3.96 3.47 2.48 1.49 0.50Interest on Working Capital 2.42 2.42 2.42 2.42 2.42Total 244.93 280.47 315.71 314.68 313.81 Profit Before Tax 1.67 7.23 13.09 14.12 14.99Provision for tax 0.56 2.43 4.41 4.75 5.05Profit After Tax 1.11 4.80 8.68 9.37 9.94Add: Depreciation 7.20 6.12 5.20 4.42 3.76Cash Accruals 8.31 10.92 13.88 13.79 13.70 Repayment of Term loan 0.00 9.00 9.00 9.00 9.00 4. WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials 0.50 7.21 25% 1.80 5.41 Consumables 2.00 0.05 25% 0.01 0.04 Finished goods 0.50 9.79 25% 2.45 7.34 Debtors 0.50 10.28 10% 1.03 9.25 Expenses 1.00 0.30 100% 0.30 0.00 27.63 5.59 22.04

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6. PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax 8.68 Sales

= 328.80

3%

Profit before Interest and Tax 17.99 Total Investment

= 79.38

23%

Profit after Tax 8.68 Promoters Capital

= 21.34

41%

7. BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries 9.37 Repairs & Maintenance 0.73 Depreciation 5.20 Admin. & General expenses 3.97 Interest on TL 2.48 21.75 Profit Before Tax (P) 13.09

FC x 100 21.75 80 BEL = FC +P

=34.84

x 100

x 100

50% of installed capacity