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    Feasibility - HDPE Drum - Costing Based On 2011 Data

    Uploaded by

    Rammeshwar D Gupta
    This feasibility report analyzes the costs and production capacity of establishing a plant to produce modified blow moulded containers. Key details include: - The base capital cost is approximately Rs. 20.3 crore for equipment including a blow moulding machine with a capacity of 550 drums per day. - Operating expenses are estimated including a monthly raw material cost of Rs. 13.97 lakh based on producing 20,160 drums in 28 days from 138,600 kg of PET resin. - Monthly expenses also include utilities, depreciation, interest and production is estimated to yield a cost of Rs. 1,262 per drum and net savings of Rs. 18 per drum compared to outside purchase rates.

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    Feasibility - HDPE Drum - Costing Based On 2011 Data

    Uploaded by

    Rammeshwar D Gupta
    422 views8 pages
    This feasibility report analyzes the costs and production capacity of establishing a plant to produce modified blow moulded containers. Key details include: - The base capital cost is approximately Rs. 20.3 crore for equipment including a blow moulding machine with a capacity of 550 drums per day. - Operating expenses are estimated including a monthly raw material cost of Rs. 13.97 lakh based on producing 20,160 drums in 28 days from 138,600 kg of PET resin. - Monthly expenses also include utilities, depreciation, interest and production is estimated to yield a cost of Rs. 1,262 per drum and net savings of Rs. 18 per drum compared to outside purchase rates.

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    Feasibility - HDPE Drum - Costing based on 2011 data

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    This feasibility report analyzes the costs and production capacity of establishing a plant to produce modified blow moulded containers. Key details include: - The base capital cost is approximately Rs. 20.3 crore for equipment including a blow moulding machine with a capacity of 550 drums per day. - Operating expenses are estimated including a monthly raw material cost of Rs. 13.97 lakh based on producing 20,160 drums in 28 days from 138,600 kg of PET resin. - Monthly expenses also include utilities, depreciation, interest and production is estimated to yield a cost of Rs. 1,262 per drum and net savings of Rs. 18 per drum compared to outside purchase rates.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    422 views8 pages

    Feasibility - HDPE Drum - Costing Based On 2011 Data

    Uploaded by

    Rammeshwar D Gupta
    This feasibility report analyzes the costs and production capacity of establishing a plant to produce modified blow moulded containers. Key details include: - The base capital cost is approximately Rs. 20.3 crore for equipment including a blow moulding machine with a capacity of 550 drums per day. - Operating expenses are estimated including a monthly raw material cost of Rs. 13.97 lakh based on producing 20,160 drums in 28 days from 138,600 kg of PET resin. - Monthly expenses also include utilities, depreciation, interest and production is estimated to yield a cost of Rs. 1,262 per drum and net savings of Rs. 18 per drum compared to outside purchase rates.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 8

    FEASIBILITY REPORT

    FOR 250 LIT.(MODIFIED) BLOW MOULDED CONTAINERS - 720 drums / day


    Based on offer dtd 1/9/2008 for plant capacity @720 drums/day
    base capital cost:
    JMV -210 Blow moulding machine with TMC 128 Point Parison
    Programmer. (capacity - 720 Drums /day) 11,970,000
    Post Cooling arrangement 300,000
    Air Compressor, 30 Hp., screw type 430,000
    1000 Ltr. Receiver tank 57,500
    Plastic Scrap Grinder, 24"/20 Hp. 504,000
    Cooling Tower, 80 Tons. 120,000
    Chilling Plant, 15 Tons. 625,000
    Ratio Loader (in place of Hopper Loader) 350,000
    Article Moulds, 220/235/250 litre. 1,800,000
    Water Pump 7.5 HP 22,500
    Circular Saw Cutter. 47,250
    Cooling accessories 65,000
    Leak tesing machine 305,000
    Drop testing machine 125,000
    Bung Mould (Injection) - 4 cavity 125,000
    O' ring Mould (Injection) 55,000
    Printing machine (hand operated) 60,000
    hOT Crane (10 MT Capacity 500,000
    Drum Color Mixer 100 Kg/ 50 Kg X 2 262,500
    DG Set 500 KVA 2,500,000
    Total = 20,223,750
    Plus Excise Duty, @10.30% = 2,083,046
    Total = 22,306,796
    Plus CST @ 1% (W.E.F 1ST APR-09) 223,068
    Total Capital Investment = (A)

    Pre Production Charges (including Installation charges and


    miscellaneous expenses) = (B)
    Total Project Cost

    B Estimation of Operating Expenses


    B.1 Cost Of Raw Material
    Basis - Drum Production capacity/day 720

    Plant Ops days/month (in days) 28

    Unit Weight of 250 Ltr Capacity Drum (in Kg) 9.0

    Landed Cost of PET Resin 77

    Total Quantity of Raw Material (in Kg) 181,440

    Total Raw Material Cost


    (720 pieces /day, 9.0 Kg/drum, 15 days production, Rs. 77/kg resin) C
    Less Modvat 10.30%

    B.2 Cost of Utilities


    Electricity Bill / month. 628,992

    Labour Charges / month. 75,000


    Maintenance Charges / month. 25,000

    Drum Delivery charges (Prodn site to consmption site) 352,800

    Process Wastage @1% 139,709


    Monthly Expenses on utilities D

    B.3 Depreciation @10% on Capital Investment = E (PER MONTH)

    B.4 Interest @12% on Capital Investment = F (PER MONTH)

    Total Monthly Production Expenses = G

    Cost of Production of One Drum

    Outside Purchase from Times Techno


    Basic cost 693
    Processing Charges 130
    Excise Duty @10.3% 85
    Sales Tax NA
    Freight 22

    Net Saving per drum

    Monthly Realisation based on Production of 8250 drums for captive


    consumption (H)

    Payback Period (in Months)

    NOTE :
    * All the figures are rupees if otherwise not stated.
    * All the figures are approximate values and we are not liable for the same.
    * All the calcutations are monthly basis.
    720 drums / day
    rums/day

    Incl. spares for B/M machine

    22,529,864

    2,40,000
    22,529,864

    20,160 drums in 28 days

    Captive Consumption 8250 Drums per month, (Resin


    8250X9=74250 Kg) captive consumption
    13,970,880
    Specific Electricity Consumption is @0.8 KWH/kg resin
    processed, Electricity Rate @20 hrs @Rs.3.2 KWH, 4
    Hr @Rs.10 KWH

    Foreman/Operator - 1@Rs. 30000 pm, 3 helper/shift


    @5000 pm, 3 shift ops of 8 hrs
    Lump sum estimate
    3500/- trip from Bajpur for 200 drum, (720/day X 28
    days)/200X3500 = 352800/-

    Process Wastage due to power fluctuation @2% of


    Raw Material consumed for captive consumption will be
    (74250 X 1% = 742.5 X Rs. 60/kg = Rs. 44550/-
    1,221,501

    187,749

    281,623

    15,661,753

    777

    No ST against exchange of Form-H for export

    930

    153

    1,262,250

    18
    FEASIBILITY REPORT
    FOR 250 LIT.(MODIFIED) BLOW MOULDED CONTAINERS - 550 Drums / Day
    (Based on Discussion dtd 5/12/2008)
    capital cost:
    JMV -210 Blow moulding machine.
    (Capacity-550 drums/day) 10,000,000
    Post Cooling arrangement 500,000
    Air Compressor, 30 Hp. 457,000
    1000 Ltr. Receiver tank 57,500
    Scrap Grinder, 24"/20 Hp. 375,000
    Cooling Tower, 80 Tons. 115,000
    Chilling Plant, 15 Tons. 750,000
    Ratio Loader (in place of Hopper Loader) 350,000
    Article Moulds, 220/235/250 litre. 1,800,000
    Water Pump 7.5 HP 20,000
    Circular Saw Cutter. 60,000
    Cooling accessories 60,000
    Leak tesing machine 350,000
    Drop testing machine 125,000
    Bung Mould (Injection) 110,000
    O' ring Mould (Injection) 45,000
    Printing machine (hand operated) 45,000
    hOT Crane (10 MT Capacity 500,000
    DG Set 500 KVA 2,500,000
    Total = 18,219,500
    Plus Excise Duty, @10.3% = 1,876,609
    Total = 20,096,109
    Plus CST @ 1% (W.E.F 1ST APR-09) 200,961
    Total Capital Investment = (A) 20,297,070

    Pre Production Charges (including


    Installation charges and miscellaneous (B) 2,40,000
    expenses) = Total Project Cost 20,297,070

    B Estimation of Operating Expenses


    B.1 Cost Of Raw Material
    Basis - Drum Production capacity/day 550

    Plant Ops days/month (in days) 28

    Unit Weight of 250 Ltr Capacity Drum (in Kg) 9.0

    Landed Cost of PET Resin as on 1st Jan-11 77

    Total Quantity of Raw Material (in Kg) 138,600

    Total Raw Material Cost


    (550 pieces /day, 9.0 Kg/drum, 15 days
    production, Rs. 57/kg resin) C 10,672,200
    Less Modvat 10.3%

    B.2 Cost of Utilities


    Electricity Bill / month. 480,480
    Labour Charges / month. 75,000

    Maintenance Charges / month. 25,000


    Drum Delivery charges (Prodn site to consmption sit 269,500

    Process Wastage @1% 106,722

    Monthly Expenses on utilities D 956,702

    B.3 Depreciation @10% on Capital Investment = E (PER MONTH) 169,142

    B.4 Interest @12% on Capital Investment = F (PER MONTH) 253,713

    Total Monthly Production Expenses = G 12,051,757

    Cost of Production of One Drum 783

    Outside Purchase from Times Techno


    Basic cost 693
    Processing Charges 130
    Excise Duty @10.3% 85
    Sales Tax @1% NA
    Freight 22
    930

    Net Saving per drum 147

    Monthly Realisation based on Plant


    operation to produce 8250 drums for
    captive consumption only (H) 1,212,750

    Payback Period (in Months) 17

    NOTE :
    * All the figures are rupees if otherwise not stated.
    * All the figures are approximate values and we are not liable for the same.
    * All the calcutations are monthly basis.
    15,400 drums per month

    captive requirement 8250 Drums per month, (resin


    8250X9=74250 Kg for captive consumption

    Specific Electricity Consumption is @0.8 KWH/kg resin


    processed, Electricity Rate @20 hrs @Rs.3.2 KWH, 4
    Hr @Rs.10 KWH
    Foreman/Operator - 1@Rs. 30000 pm, 3 helper/shift
    @5000 pm, 3 shift ops of 8 hrs

    Lump sum estimate


    3500/- trip from Bajpur for 200 drum, (550/day X 15
    days)/200X3500 = 143500/-
    Process Wastage due to power fluctuation @1% of
    Raw Material consumed

    No ST against exchange of Form-H for export

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