BLOW-MOULDED PLASTIC PRODUCTS INTRODUCTION Plastic have played a vital role in the growth phase of the Indian economy

and continue to do so. From packaging to agriculture, automobiles and electronics plastics have revolutionized all areas because of its functionality, economics, aesthetics and reliability. Plastic have made all products affordable to the Indian consumer and have helped in raising the lifestyle of the common man. Consequently, a lot more products manufactured in India today either contain plastics or are contained in plastics. Thermo-plastic materials like High Density polythene (HDPE), Poly-vinyl chloride (PVC) can be blow molded into containers of different sizes and shapes. Some of the common items that are produced include buckets, mugs, jugs, & jerry cans. In bulk quantity is stored in over-head tanks made of concrete, galvanized steel sheet and mild steel in case of very big tank. Due to heavy load of such tank, the supporting structures have to be strong and are consequently very costly. Plastic tank, being very light as well corrosion resistant and available in ready to use condition, can be installed at a nominal cost on any roof top. PRODUCT USES Plastic containers up to 5 liters capacity are generally used for domestic purpose. The plastic tank between 500-2000 ltrs. has also widening use such as water storage tank, Chemical storage tank, grain storage tank etc. MARKET POTENTIAL From a modest beginning in the late 1950s the plastic industry in India has acquired a great deal of versatility and sophistication. The industry has especially taken off in the post liberalization era. The new found business environment and abundant domestic availability of raw materials has aided the double-digit growth for plastics consumption in the country. Keeping in view the pattern of uses of jug, mug, bucket and jerry can in urban and rural areas, there is a substantial demand of about 60 to 65 lakhs numbers for assorted products. On the other hand the water storage tank for domestic purpose, it is estimated that at present about 60,000 MT of plastic tank equivalent to 10, 80,000 pcs. of 1000 ltrs. capacity are required annually. There are 8-10 blow moulding units in the north eastern region. The production of these units is limited and bulk of the requirement is being met from outside sources, the leading brands being Brite and Prince. SUGGESTED CAPACITY To assessing the proposed plant capacity due consideration is given on availability of raw materials, availability of electricity, skilled manpower and market. At initial stage the unit will produce only four main items they are Jugs, Mugs, and Buckets. The suggested size of the Project and the production at different capacity utilization per annum will be as follows: Items Jugs Mugs Buckets Installed Capacity in numbers per year 80,000 2 lakhs 50,000 Approximate weight (in gm.) 50 40 300 Total weight (tones /year) 4.00 8.00 15.00 27.00

Basis:No. of working days No. of shifts One shift = = = = 25 days per month 300 days per year 1 per day. 8 hours

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INFRASTRUCTURE REQUIRED The main Infrastructural facilities required are: Covered shed area (processing hall/storages/office) Power requirement Water Requirement 3000 sq. ft. 30 kw. 5000 ltrs/day

RAW MATERIALS REQUIRED AND AVAILABLITY The major raw material required is HDPE. About 27.00 MT of HDPE is required per year. HDPE is being manufactured by a Polyofelins Industries Ltd. in Mumbai. After setting up of Gas Cracker in Assam, both HDPE and PVC will be available within the state. SUGGESTED LOCATION The suggested locations are: Assam Nagaland Manipur Tripura : : : : Tinsukia, Dibrugarh, Sibsagarh & Silchar Dimapur Imphal Agartala

PRODUCTION PROCESS The main product is manufactured on a semi automatic extrusion blow moulding machine. The main process steps involved are: o o Plastic material in the form of granules is subjected to heat and pressure in an extruder. Semi-molten plastic in extruder passed through the nozzle known as parison. Adjustments have to be made 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 parison to force the moltan plastic against the sides of the mould. The material is then cooled before removal from the mould. The article is then trimmed to remove flashes. PROJECT ECONOMICS Total Capital Requirement The total capital requirement including fixed capital and working capital is estimated at Rs lakhs as follows. Of this, the project cost comprising fixed capital and margin money on working capital is Rs. lakhs. A. Fixed Capital Land Land Development Cost Building /Civil works: Work shed 1000 sq.ft Office/Store 800 sq.ft. Toilet/Bathroom/Cemented open space, Drainage facilities etc. Plant & Machinery Misc. Fixed Assets i) ii) iii) 6.00 4.80 (Rs. in lakhs) Own/Lease 1.00

o o o

1.50 8.50 1.50

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B.

(Water arrangement/Overhead reservoir/pump set/power line connection/water & electrical fittings/office equipment) Preliminary & Pre-operative Expenses 0.80 Contingency provision 1.15 Total 25.25 Working Capital: Raw materials/consumables, Working expenses Finished goods Receivable 15 days 1 month 10 days 7 days 0.74 1.04 1.00 0.97 3.75

Note: Working capital to be financed as Margin Money Bank Finance Means of Finance: Promoters Equity(25%) Term Loan (75%)

: :

1.75 2.00 3.75

: :

6.75 20.25 27.00

Cost of Production & Profitability: Raw material/consumables Wages & Salaries Utilities Repair & Maintenance Administrative overhead Selling expenses 10% on sales Depreciation Interest

: : : : :

(Rs in lakh) 14.76 9.77 2.67 0.30 0.40 4.60 : 1.50 : 3.74 37.74

Sales Realisation: Based on the prevailing market prices and providing for dealers commission, sales tax etc. net ex-factory prices are considered as under: Items Market Price(Rs.) Ex-factory price(Rs.) Jugs 25.00 18.00 Mugs 10.00 6.00 Buckets 60.00 40.00 Based on the above prices, the annual sales realization is estimated as follows: Items Quantity Price Sales Realization Nos. Yr. Rs/unit Rs.lakh/yr. Jugs 80,000 18.00 14.40 Mugs 2,00,000 6.00 12.00 Buckets 50,000 40.00 20.00 Total 46.40 Break Even Analysis: A. Variable Cost: Raw materials/Consumables Utilities Selling expenses

(Rs in lakh) 14.76 2.67 4.60 22.03

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B.

Semi-Variable Cost: Wages & Salaries Repair & Maintenance Administrative overhead Depreciation Interest 9.77 0.30 0.40 1.50 3.74 15.71 Rs. 46.40 lakhs Rs. 24.37 lakhs 64 %

C. D. E.

Sales Realization Contribution Break-Even Point B/D x 100%

Highlights: The major highlights of the project are as follows: Total Capital requirement Promoters contribution Annual Sales realization Annual Operating Expenses Annual Profit Return on sales Break-even point No. of person employed(direct) Machinery & Equipment: The main equipment required are Rs.in Lakhs i) Semi-Automatic extrusion blow moulding machine consisting: a) 50 mm screw extruder motor, variable speed drive and electrical control cabinet 10 H.P b) cross head dies(single,double and triplecores) and spacer c) Mould closing and opening unit with hydraulic System Compressor with motor 5 H.P. Water Pump with 1 H.P. Moulds, dies, tools etc. Add. Taxes,insurance, transport, loading and unloading Erection and commissioning | | | | | | | | | | | Rs. Rs. Rs. Rs. Rs. 19% 64% 14 29.00 lakhs 6.75 lakhs 46.40 lakhs 37.74 lakhs 8.66 lakhs

7.40

ii) iii) iv)

1.10 -------------8.50

Raw Materials/Consumable (Annually): Item 1. HDPE 2. PVC 3. Colours/Pigments and others TOTAL Quantity 9.00 MT 18 MT L.S. Rates 70,000/MT 42,000/ MT Annual Requirement (Rs in lakh) 6.30 7.56 0.90 14.76

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Manpower: Category Production Manager/Chemist Skilled worker Semi-Skilled workers Unskilled workers Accountant/Store keeper No.of person 2 2 3 5 2 Salary per person per month(Rs) 10,000 6000 5000 3000 6000 Total Manpower Cost Monthly Salary Bill (Rs ) 20,000 12,000 15,000 15,000 12,000 74,000

Salary Bill Rs 8.88 Lakhs+ Benefits @ 10% annually i.e. Rs 0.89 Total Annual Salary Bill : Rs 9.77 Lakh. Utilities: Power for Machinery General Lighting Electricity Bill (annual) 26 H.P X 0.746 KW X 6 Hrs. X 300 days X Rs. 5.50 Water charges 2000 ltrs. per day(L.S) Fuel(furnace oil/natural gas) 50 kl. Per annum = Rs.1.92 Lakhs =Rs.0.05 Lakhs = Rs.0.70 Lakhs Rs.2.67 Lakhs 16 H.P. 10 H.P. 26 H.P.

Machinery Suppliers: 1. M/s Ahura Industrial Engineers, 18, Sidhpura Industrial Estate, SV Road, Goregaon, Mumbai 400 062 2. M/s Boolani Engineering Corporation, 402, Prabhadevi Industrial Estate, Savarkar Road, Mumbai 400 018 M/s Brimco Plastic Machinery, Corporation, Plot 55, Govt. Kandivli Industrial Estate, Kandivli (West), Mumbai 400 067

. M/s Universal Machinery Services Tarun Compound, Andheri (East) Mumbai 400 069

3.

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FORMAT 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Introduction. About the Product Market Potential Suggested Capacity Infrastructure requirement Covered Area Utilities Raw Materials and its availability Suggested Location Production process(step wise) Project Economics I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. Capital Cost. Working Capital requirement Cost of Production & Profitability Turn Over Sources of Finance Plant & Machineries Cost of Raw Materials & Consumables Cost of Utilities & Overhead Manpower requirement & wage bill Profit Sales ratio Rate of Returns Break Even Point

Addresses of machinery suppliers/manufacturers

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