ABS Injection Moulded Items - Guntur districtguntur.nic.in/statistics/plastic.pdf · ABS INJECTION...
Transcript of ABS Injection Moulded Items - Guntur districtguntur.nic.in/statistics/plastic.pdf · ABS INJECTION...
1
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.
2
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)
3
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.
4
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
5
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
6
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%
7
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.
8
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
9
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
10
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
11
FC +P 28.90 100
58% of installed capacity
or Production volume
111.36 MTs or Sales
value Rs.133.63 lacs
1
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.
2
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
3
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
4
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
5
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
6
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
7
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
8
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
9
66000 kgs or Sales value Rs.6.77 lacs
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.
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
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
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
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.
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.
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
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
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
10
48 MTs or Sales
value Rs.48 lacs
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
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
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
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
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.
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.
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
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
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
10
54% of installed capacity
or Production volume
25.92 MTs or Sales
value Rs.31.10 lacs
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
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
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
4
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
5
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
6
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
7
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
8
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
9
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
10
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
1
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.
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 Tons)
2003 2004
LDPE 281
Linear PE / LLDPE / HDPE 1666 3000
PP 1737 2569
PVC 986 1614
PS 246 402
PET Bottles 45 100
3
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
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
5
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
6
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
7
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
8
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
9
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
10
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
1
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
2
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
3
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
4
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
5
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
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
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
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
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
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
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
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
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.
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.
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) 1.75 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
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%
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
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.
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
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.
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
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
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.
7
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
8
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
9
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
10
MTs Or sales value
Rs.28.80 lacs
1
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 &
2
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
3
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
4
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
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 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
6
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,
7
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
8
Term Loan amount is assumed at 75% of the value of Machinery
9
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
10
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
11
23400 Nos.
or sales value
Rs.70.20 lacs
1
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.
2
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
3
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
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
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
5
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.
6
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
7
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
8
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.
9
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
10
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
11
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
1
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
2
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.
3
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
4
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)
5
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
6
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
7
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
8
39% of installed capacity or
Production volume 46.8 MTs
or Sales Value Rs.49.14 lacs
1
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.
2
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
3
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.
4
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
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.
6
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
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%
8
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.
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.
10
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
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
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.
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
3
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
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
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
6
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
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.
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
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
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
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.
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
3
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
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.
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
6
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
7
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.
8
6 Polychem Ltd, 74 Jamshedji Tata Road, Mumbai – 400 020
9
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
10
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
11
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
12
1
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.
2
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
3
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.
4
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
5
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.
6
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]
7
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
8
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%
9
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
1
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.
2
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
3
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
4
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.
5
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
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
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)
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
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
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
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
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
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
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,
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
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
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%
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
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.
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
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
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
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
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
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.
8
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
9
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
1
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
2
• 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
3
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
4
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
5
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.
6
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
7
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%
8
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
1
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.
2
• 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
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
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
4
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.
5
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
6
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,
7
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,
8
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
9
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
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
11
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
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
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.
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
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
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%
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,
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.
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
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
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
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%
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,
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]
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
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
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
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.
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
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.
4
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
5
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.
6
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
7
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.
8
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
9
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
10
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
11
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
12
1
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.
2
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.
3
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
4
• 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
5
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
6
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
7
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
8
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.
9
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.
10
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
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
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%
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
14
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
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
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
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
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
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%
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
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.
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
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
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.
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
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
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
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.
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
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
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
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.
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
3
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
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
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
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.
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
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
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
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
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.
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
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.
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.
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
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
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
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.)
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
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
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.
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
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,
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
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
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
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.
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
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
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
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
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
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.
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
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%
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
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.
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 (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.
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
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.
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
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
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
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
Chennai - 600 079. 4. M/s. Sri Sakthi Industries, 144, Nehru Nagar, Chennai - 600 041.
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
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%
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
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
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.
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
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.
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
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
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
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
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
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
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